lng regulatory update. ole vidar nilsen - dnv gl.pdf · 67 lng supply locations for ships worldwide...

DNV GL © 2017 01 April 2018 SAFER, SMARTER, GREENER DNV GL © 2017

10 April 2018

MARITIME

LNG regulatory update

1

“Best fuel of the future”, conference & study tour

[email protected]

DNV GL © 2017 01 April 2018

SUPPLY: Brief status on uptake of LNG as fuel

2

DNV GL © 2017 01 April 2018

There are currently 247 confirmed LNG fuelled ships, and 110 additional LNG ready ships

3

126

124

126

119

76

97

46

56

25 35

117

122

51

88

105

110

110

110

110

110

87

98

54

68

14

35

21

15

121

121

121

121

121

121

121

121

121

126

110

Updated 1 April 2018 Excluding LNG carriers and inland waterway vessels

The big wild card: Sulphur

Cap 2020

500 probably to be reached

in 2020

DNV GL © 2017 01 April 2018

Area of operation of LNG fuelled vessels

4

61

7

14

15 22

2

Operating area of the 121 ships in operation Operating area of the 126 ships on order

14

7 9

38

57 1


DNV GL © 2017 01 April 2018

AIS data from LNGi shows that LNG fuelled ships are already covering a large area

5

The heat map is based on the LNG fuelled fleet’s AIS positions from 01.01.2018-11.01.2018

DNV GL © 2017 01 April 2018

LNG uptake by vessel segment

6

3 3

2 2

4 2

2

3

1 1

1

4

4

5 9

5

9

5

10

17

21

14

18

21

34

33

14


DNV GL © 2017 01 April 2018

126 confirmed LNG fuelled newbuilds (1/3)

7

Year Type of vessel Owner Class

2018 Tug Drydocks World Tasneef

2018 Hopper Barge Bremenports DNV GL

2018 PSV Harvey Gulf Int. ABS

2018 Cable layer DEME Tideway DNV GL

2018 RoPax Rederi AB Gotland DNV GL

2018 Container ship Crowley Maritime Corp. DNV GL

2018 Container ship Brodosplit DNV GL


2018 Bulk ship ESL Shipping DNV GL

2018 Bulk ship ESL Shipping DNV GL

2018 Car/passenger ferry Society of Quebec ferries LR

2018 Car/passenger ferry Society of Quebec ferries LR

2018 PSV Siem Offshore DNV GL

2018 PSV Siem Offshore DNV GL

2018* HSLC Fred. Olsen DNV GL

2018* Car/passenger ferry BC ferries ABS

2018 Car/passenger ferry Caronte & Tourist RINA

2018 Oil/chemical tanker Groupe Desgagnés BV

2018 Oil/chemical tanker Groupe Desgagnés BV

2018 Container ship Crowley Maritime Corp. DNV GL

2018 Tug Keppel Smit Towage ABS

2018 Tug Maju Maritime ABS

2018* Car/passenger ferry BC ferries ABS

2018 PSV Harvey Gulf Int. ABS




2018 Car/passenger ferry Royal Doeksen LR

2018 Car/passenger ferry Royal Doeksen LR

2018 Car/passenger ferry CHFS LR

2018 Car/passenger ferry CHFS LR

2018 RoPax Rederi AB Gotland DNV GL

2018 Container ship Containerships ABS

2018 Container ship Containerships ABS

2018 Container ship GNS Shipping ABS

2018 Container ship GNS Shipping ABS

2018 Heavy lift vessel Heerema Offshore LR

2018 Oil/chemical tanker Furetank Rederi BV



2018 Dredger DEME BV

2018 Dredger van der Kamp DNV GL

2018 Oil/chemical tanker Thun Tankers

2018 Oil/chemical tanker SCF DNV GL


2018 Car/passenger ferry Torghatten DNV GL

2018 Bunker ship Harley Marine Services

2018 Bunker ship Harley Marine Services

Confirmed orderbook

* Conversion project


DNV GL © 2017 01 April 2018


8

Confirmed orderbook


2019 Emergency response ship German Transport Ministry

2019 RoPax Brittany Ferries BV

2019 RoPax Baleària

2019 RoPax Baleària

2019 Shuttle tanker AET DNV GL

2019 Shuttle tanker AET DNV GL

2019 RoPax Polish Baltic Shipping Co

2019 RoPax Polish Baltic Shipping Co

2019 Shuttle tanker Teekay Offshore DNV GL

2019 Container Ship CMA CGM BV

2019 Oil/chemical tanker Älvtank BV

2019 Oil/chemical tanker Älvtank BV

2019 Tug PSA Marine

2019 Dredger Dragages Ports

2019 Fishing vessel Liegruppen

2020 Wellboat Nordlaks









2020 Container ship Pasha Hawaii

2020 Container ship Pasha Hawaii


2018 Bunker ship Sinanju Tankers

2018 Reefer SeOil Agency/Gas Entec




2018* Dredger Dragages-Ports BV


2019 Oil/chemical tanker Thun Tankers BV







2019 Oil/chemical tanker AET ABS

2019 Oil/chemical tanker AET ABS

2019 Tug Mitsui O.S.K. Lines

2019 Cruise ship Carnival Corporation RINA



2019 Offshore installation ship DEME DNV GL

2019 Dredger DEME BV

2019 RoPax Baleària BV

2019 Car carrier Siem Car Carriers ABS

2019 Car carrier Siem Car Carriers ABS

2019 Emergency response ship German Transport Ministry



DNV GL © 2017 01 April 2018


9

Confirmed orderbook


2020 Research ship German Transport Ministry

2020 RoPax Viking Line DNV GL






2021 Oil/chemical tanker Rosneft RR





2021* Ro-Ro TOTE Shipholdings ABS

2021* Ro-Ro TOTE Shipholdings ABS


2021 Cruise ship Carnival Corporation

2021 Cruise ship Disney Cruise Lines

2021 Cruise Ship Ponant BV


2022 Cruise ship MSC Cruises

2022 Cruise ship RCCL DNV GL





2024 Cruise ship RCCL DNV GL

2024 Cruise ship MSC Cruises




DNV GL © 2017 01 April 2018

Dual Fuel is the preferred option

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78%

2%

21%

Gas engine technology - ships on order

DF

Gas

Unknown

DNV GL © 2017 01 April 2018

DEMAND Uptake of scrubbers

11

DNV GL © 2017 01 April 2018

Investments in scrubbers are higher in total numbers but LNG fuel is the most frequent choice for newbuilds

12

*Number of ships are shown. Number of scrubber units are higher. Updated 1 April 2018

Excluding LNG carriers and inland waterway vessels

Scrubber retrofit is the “main

competitor” to LNG

DNV GL © 2017 01 April 2018

There are currently 437 ships with scrubbers confirmed (already in operation or contract signed)

13

*Number of ships are shown. Number of scrubber units are higher. Updated 1 April 2018

Excluding LNG carriers and inland waterway vessels

437

436

435

429

384

332

284

212

88

31

Some estimates count some

2000 scrubbers by 2020

DNV GL © 2017 01 April 2018

SUPPLY LNG bunkering infrastructure

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DNV GL © 2017 01 April 2018

67 LNG supply locations for ships worldwide today, and many more decided and planned*

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*There may be several bunkering facilities/modes for one location. The count includes local storages, bunker ship loading facilities and truck

loading facilities. Locations where LNG fuelled ships can be bunkered by truck or by ship is not counted.

67

26

38

Updated 1 April 2018

DNV GL © 2017 01 April 2018

The majority of LNG supply locations for ships are in Europe*

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*There may be several bunkering facilities/modes for one location. The count includes local storages, bunker ship loading facilities and truck

loading facilities. Locations where LNG fuelled ships can be bunkered by truck or by ship is not counted.

26

12

26

6 15 13

5

6 2 6

4

4

2 4


DNV GL © 2017 01 April 2018

All types of LNG supply facilities are being developed*

17

29

14

20

8

5 14

9 47

22

16

29

12

43

3 2

Bunker Ship Loading Facility

*Some locations have several types of facilities, which is why the number of facilities is higher than the number of locations.

• Local storage – An intermediary LNG storage

• Tank to ship bunkering – A local storage where an LNG fuelled ship can bunker directly from shore

• Truck loading facility – A terminal where LNG trucks can load LNG (probably under-estimated)

• Bunker Ship loading facility – LNG terminal accessible by small LNG carriers


DNV GL © 2017 01 April 2018

LNGi shows a clutter of LNG bunker vessels coming in Europe

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*In the LNGi map bunkering barges for inland waterway vessels are also shown, but these projects are not shown here.


DNV GL © 2017 01 April 2018

LNGi keeps you on top of the development of LNG bunkering for ships

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Map with LNG bunkering infrastructure

with detailed project data

Heat map and vessel positions of LNG

fuelled fleet operating area using AIS

Detailed statistics of LNG fuelled

fleet development

Scrubber + alternative fuels overview

LNG related studies and publications

LNGi

Heat map Vessel information from AIS plot

The heat map and vessel positions are based on AIS data from

01.03.2016-11.03.2016

DNV GL © 2017 01 April 2018

LNGi members – Contributing to the uptake of LNG as ship fuel

Brodosplit

Carnival Cruises

Caterpillar

CMA Ships

ENGIE

Galbraith’s Ltd

Gas Natural Fenosa

GTT

Japan Marine Science

MAN

Marine Bunker Exchange

MPA Singapore

MST Mineralien Schiffahrt

Navig8

Oil major

Oil major

Port of Amsterdam

Rolls Royce

SEA\LNG

SGMF

Shell

Shipowner

Shipowner

Skangas

UASC

Wärtsilä

WinGD

Odfjell

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DNV GL © 2017 01 April 2018

Alternative fuels – where are we heading?

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DNV GL © 2017 01 April 2018 01 April 2018

A global and regional forecast

of the energy transition to 2050

22

50%

32%

18%

DEEP SEA

[PERCENTAG

E]

32%

18%

9%

SHORT SEA

HFO/MGO [PERCENTAG

E]

LNG [PERCENTAG

E]

Biofuel [PERCENTAG

E]

Electricity [PERCENTAG

E]

SHIPPING ENERGY MIX 2050

HFO/MGO

LNG

Biofuel

Electricity

Fuel

DNV GL © 2017 01 April 2018

Regulatory timeline towards 2030 - Environment

2018 2017 2019 2025- 2021-2024 2020

Additional ECAs established?

Operational requirements to CO2 emissions

HK Recycling convention ratified?

Adopted

In the pipeline, or possible…

Global fuel consumption data collection system

EU CO2 monitoring, reporting and verification

Ballast Water Convention - entry

into force

BC, noise, bio-fouling and VOC

regulation

EEDI phase 2

0.5% global sulphur cap

Baltic / North Sea NECA

All ports in Chinese area 0.5% sulphur

Core ports in Chinese area 0.5% sulphur

Chinese area 0.5% sulphur

EEDI Phase 4

EEDI phase 3

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EEDI phase 3

DNV GL © 2017 01 April 2018

Impact: References:

1. Code for ships using gases or other low-flashpoint fuels (IGF Code)

IMO has agreed on amendments and further unified

interpretations of the IGF Code Part A-1 for ships

using natural gas as fuel.

A Phase 2 development of the IGF Code is ongoing

including more detailed provisions for

– Fuel cells and methyl-/ethyl-alcohols as fuel

– Finalized 2021 – entry into force 2024

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IGF Code in force from 1 January 2017 for Ships using

Gases or other Low-flashpoint Fuels

Amendments to the IGF Code

subject to approval by MSC99

and adoption by MSC100,

expected entry into force on 1

January 2024.

http://www.imo.org/Pages/home.aspx

DNV GL © 2017 01 April 2018

IGF Code – Unified Interpretations

IMO has issued Unified

Interpretations of the IGF Code

by MSC.1/Circ.1558

Provides more specific guidance

for the application of the

relevant requirements in the

IGF Code Part A-1 (natural gas).

26

Unified Interpretations related to:

- Definition of tank connection space and fuel preparation room - Tank connection space may be required on open deck - Appropriate location of premixed engines using fuel gas mixed with air before the

turbocharger - Protection against cryogenic leakage and control of hazardous zones in fuel preparation

rooms on open deck - External surface area of the tank for determining sizing of pressure relief valve - Control and maintenance of pressure and temperature of liquefied gas fuel tanks after the

activation of the safety system - Special consideration within the risk assessment of closed or semi-enclosed bunkering

stations - Ventilation of machinery spaces - Ventilation of double piping and gas valve unit spaces in gas safe engine-rooms - Ventilation inlet for double wall piping or duct

DNV GL © 2017 01 April 2018

2. DNV GL Rules for gas fuelled ship installations

DNV GL have considered the areas where the principles of the IGC Code cannot be

applied to gas fuelled ships to be of particular importance. The main questions we

have asked ourselves are:

• How shall we protect the vessel against leakages in the piping

systems?

• How shall we reduce the risks associated with having storage tanks

located

• below deck?

• on open deck?

• How shall we mitigate the risks associated with a space where

liquefied gas is processed, like a fuel preparation room or a tank

connection space?

27

DNV GL © 2017 01 April 2018

DNV GL Rules for gas fuelled ship installations, cont’d

Pt.6 Ch.2 Sec.5 GAS FUELLED SHIP INSTALLATIONS – GAS FUELLED

– Class Notation Gas fuelled

– Published October 2015 and entered into force January 2016

– The requirements cover all aspects of the gas fuel installation, from the ship’s

gas fuel bunkering connection all the way up to and including all gas consumers

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Pt.6 Ch.2 Sec.5 Gas fuelled ship installations - Gas fuelled 1 General requirements 2 Materials 3 Ship arrangement 4 Fuel containment systems 5 Piping systems 6 Ventilation systems 7 Fire safety 8 Electrical systems 9 Control, monitoring and safety systems 10 Gas turbines and boilers 11 Manufacture, workmanship and testing

DNV GL © 2017 01 April 2018

3. DNV GL Class Notation GAS READY

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XN Content Comment

GAS

READY

D The design for the ship with LNG as fuel is found to be in

compliance with the GAS FUELLED notation rules

applicable for the new-building, ref. Pt.1 Ch.1 Sec.2

A300.

Mandatory

S

Structural reinforcements to support the fuel

containment system (LNG fuel tank(s)) are installed, and

materials to support the relevant temperatures are used

P

The ship is prepared for future gas fuel system

installations: Pipe routing, structural arrangements for

bunkering station, gas valve unit space, fuel preparation

space if relevant (optional)

MEc Main engine(s) installed can be converted to dual fuel Mandatory (can be replaced

with MEi)

MEi Main engine(s) installed can be operated on gas fuel

AEc Auxiliary engines installed can be converted to dual fuel The auxiliary engine capacity

after conversion shall be

sufficient for the ship power

balance.

AEi Auxiliary engines installed can be operated on gas fuel

B Boilers installed are capable of burning gas fuel

DNV GL © 2017 01 April 2018

SAFER, SMARTER, GREENER

www.dnvgl.com

LNG as a fuel Get ready for the future - today

31

Visit: www.dnvgl.com/LNGi

For more information please

Email: [email protected]

http://www.dnvgl.com/LNGi

mailto:[email protected]

mailto:[email protected]

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