Activity 5 – NG in the Maritime: Strategy, Legislation & Implementation Plan

Project Coordination Committee (PCC) Meeting

Nicosia, 18 June 2018

Background Information

Aims at conducting all the relevant studies for the penetration of LNG as

an alternative marine fuel in the Comprehensive TEN-T Port of Larnaca

& Core TEN-T Port of Limassol (Terminal 2 – Vassiliko).

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Activity 5: NG in the Maritime: Strategy, Legislation & Implementation Plan

Subactiv ity 5.1: Port of Larnaca & Port of Lemesos Terminal 2 - Vassiliko LNG

Subactiv ity 5.2: Port of Larnaca & Port of Lemesos Terminal 2 - Vassiliko LNG

Subactiv ity 5.3: Legal and Regulatory Framework Detailed Analysis

Subactiv ity 5.4: Cost Analysis of NG in the Maritime

Subactiv ity 5.5: NG in the Maritime Sector

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Sub-activity 5.1: Port of Larnaca & Port of Limassol Terminal 2 – Vassiliko LNG Demand Analysis

Sub-activity 5.1: Port of Larnaca & Port of Limassol Terminal 2 – Vassiliko LNG Demand Analysis

• Description: Estimate the demand for LNG as a

marine fuel - Comprehensive TEN-T Port of

Larnaca and Core TEN-T Port of Limassol Terminal

2 – Vassiliko

• Duration: June 2017 - December 2017

• Participants:

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LNG fuel Demand Estimation Methodology & Results• LNG demand estimation based on: the

fuel’s quantities to be supplied and the number of refueling needed.

• Categorization of data vessels based on:

– to their type (tankers, bulk carriers, general cargo, vehicle carriers)

– age

– deadweight capacity or car capacity

• The selection of the engines was made based on data from major manufacturers, such as MAN SE and Wärtsilä

• The ages of vessels ideal for using LNG as an alternative marine fuel is up to 15 years.

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• Larnaca LNG Demand (tanker, bulk, general cargo, vehicle)

2020-2025: 5,581.10 m3

2025-2030: 13,952.76 m3

• Vassiliko LNG Demand (only tankers)

2020-2025: 3,537.44 m3

2025-2030: 11,791.46 m3

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Sub-activity 5.2: Port of Larnaca & Port of Limassol Terminal 2 – Vassiliko LNG Supply Chain Analysis

Sub-activity 5.2: Port of Larnaca & Port of Limassol Terminal 2 – Vassiliko LNG Supply Chain Analysis

• Description: Develop a proposed supply chain for the bunkering operations of the

LNG fuelled vessels calling at Larnaca and Limassol, Terminal 2 – Vassiliko Ports.

• Milestone: Port of Larnaca & Port of Limassol Terminal 2 – Vassiliko LNG Demand

and Supply Chain Analysis – June 2018

• Deliverable: Report on Port of Larnaca and Port of Limassol Terminal 2 – Vassiliko

LNG Demand and Supply

• Duration: January 2018 – June 2018

• Participants:

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Sub-activity 5.3: Legal and Regulatory Framework Detailed Analysis

Sub-activity 5.3: Legal and Regulatory Framework Detailed Analysis

• Description: Perform a detailed analysis of the current status of the relevant legal and

regulatory framework in Cyprus, as well as of the current rules, standards and

guidelines for the use of LNG in the maritime that prevail at a European level.

• Milestone: Legal and Regulatory Framework Detailed Analysis for Maritime Use of NG –

June 2019

• Deliverable: Legal and Regulatory Framework Detailed Analysis for NG Maritime Use

• Duration: June 2017 – June 2019

• Participants:

Ministry of

Energy, Commerce, Industry and Tourism

Ministry of

Transport, Communications and Works

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Sub-activity 5.4: Cost Analysis of LNG in the Maritime Sector

Sub-activity 5.4: Cost Analysis of LNG in the Maritime Sector

• Description: Perform a detailed Cost Assessment and Cost-Benefit Analysis (CBA) for the use

of LNG in the Port of Larnaca and the Port of Limassol Terminal 2 – Vassiliko. The

methodology developed in the frame of the Cohesion Policy – Guide to Cost Benefit Analysis

of Investment Projects 2014-2020 will be used for the two Ports. The following steps outline

the analysis:

• Milestone: Cost Analysis for Maritime Use of NG – December 2018

• Deliverable: Cost Analysis for NG Maritime Use

• Duration: January 2018 – December 2018

• Participants:

Capital Expenditure Estimation Quantification of Cost Savings Calculation of Financial Indicators

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Sub-activity 5.5: LNG in the Maritime Sector

Sub-activity 5.5: LNG in the Maritime Sector

• Duration: January 2018 – June 2019

• Milestone: NG in the Maritime Implementation Roadmap – June 2019

• Deliverable: Implementation Roadmap for NG Maritime Use

• Participants:

Propose an implementation plan for the use of LNG as

an alternative marine fuel

Develop a proposed roadmap towards the use of LNG as an alternative marine

fuel

Develop a proposed stakeholder communication plan

Develop a proposed market planning strategy by utilizing the results of existing

market studies

Analyze training requirements in order to address the training needs

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Thank you for your attention!