LNG uptake: setting the scene

Panayiotis Mitrou Technology & Innovation Manager Marine & Offshore, South Europe, Lloyd’s Register

Carob Mill Restaurants 29 September 2017, Limassol

LNG: the meeting point for marine, transport & energy in Cyprus

The EU Mediterranean Case – LNG as Fuel

3

Projects 100

Partners

125 million

Euro 3 Projects 100 partners

125 million euro

LNG uptake: setting the scene

Safety Environment Market Cyprus Future

Safety

LNG Supply Chain best practice for safety

Very strong record already Sound safety procedures in

place Risk based approach on top of

any prescriptive requirements

1000 LNG bunkering operations since 2012

flammable between 5-14% volume

in air

ARBD

Environment Reduction potential of LNG per pollutant in comparison with HFO

SOx PM NOx CO₂

HFO

LNG

~100%

Up to

50%

Up to

25%

~100%

Environment

Methane Slip

References:

•IMO: Studies On The Feasibility And Use Of LNG As A Fuel For Shipping

•U.S. MARAD; Methane Emissions from Natural Gas Bunkering Operations in the Marine Sector: A Total Fuel Cycle Approach

•Danish EPA, 2010

• No problem for Diesel Engines

• Improving Otto under progress

Mitigation measures

• Enhanced engine design

• Integration of methane related controls

• Methane targeted Oxidation Catalysts

0

10

g/k

Who

ut

Engine type

Typical engine emissions factors

Methane slip(CH4)

Oxides ofnitrogen (NOx)

Reality – LNG fuelled ships

Market

8

Reality –Ports investing in LNG

Market

• Significant part of the LNG supply

chain is already there,

• Small scale infrastructure under

development in accordance with

societal needs

• Abundance is a key advantage

• As the market matures and more

resources are drawn by the

system, LNG shows its teeth

• Cruise companies leading

adoption of LNG as fuel

Market

Cyprus case 13 LNG Terminals ,

8 in operation

1 FSRU (Israel)

5 Under development

Regions with no access to Gas grid

(Western Greece, Southern Turkey, Cyprus)

Favourable LNG Bunkering Fundamentals

(Liner and Ropax Routes)

4 proved fields amounting 70 tcf of Gas,

Egyptian Export terminals

(Envisaged LNG price @ 5 USD/mmBTU in 2020)

Island states (Malta, Cyprus, Greece)

Societal Support, Stringent policies

Future Air Emissions

Local pollution

Decarbonisation

LNG Market Shale Gas

East Med case

Between traditional fossil fuels & carbon

neutral solutions,

LNG could be the bridge to

decarbonisation efficiency