Standards and Regulations for LNG Bunkering

Rich DelpizzoManager, Global Gas SolutionsNov 2014

NOSAC

2

Overview

� Why LNG as Fuel?

� Who are the Players for LNG Fueled Regulations?

� Regulations Affecting LNGF Ships and Bunkering Facilities

� ABS LNG Bunkering Study

3

Why LNG as Fuel?

� Need for low sulfur fuel

� Need for inexpensive fuel

� Need to meet ECA Requirements

4

IMO Regulation – MEPC.1/Circ. 723

Source: www.imo.org

5Source: www.hapag-lloyd.com

IMO Regulation – MEPC.1/Circ. 723

6

IMO Regulation – MEPC.1/Circ. 723

� Titled - INFORMATION ON NORTH AMERICAN EMISSION CONTROL AREA (ECA) UNDER MARPOL ANNEX VI

� Amends MARPOL Annex VI to designate the North American Emission Control Area (ECA) for NOx, SOx and particulate matter

� The requirements within the North American ECA for SOx and particulate matter “will be effective on 1 August 2012”

� While in the ECA, the sulphur content of fuel oil used “on board ships shall not exceed 1.00% m/m on and after 1 August 2012, and 0.10% m/m on and after 1 January 2015”

Source: www.imo.org

7Source: www.hapag-lloyd.com

IMO Regulation – MEPC.1/Circ. 723

8

LNG Class Requirements

� ABS Steel Vessel Rules

� Part 5C, Chapter 8

� ABS Guides

� ABS Guide for Dual Fuel Engines

� ABS Guide for Propulsion Systems for

LNG Carriers

� ABS Guide for Gas Fueled Ships

� IACS

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IACS Members

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IMO LNGC Regulatory Framework

� IMO:

� International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code)

� Revised IGC Code

� International Convention for the Safetyof Life at Sea, 1974 (SOLAS)

� International Convention on Standards of Training, Certification and Watch-keeping for Seafarers,1978 (STCW) (Amended 1995)

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Type Ap < 700 mbar

Full secondary barrier

Spherical (Moss)

Prismatic (IHI SPB) .

Type Bp < 700 mbar

Partial Seondary barrier

Cylindrical

Bilobe

Type Cp > 2000 mbar

No Secondary barrier

Independent Tanks

GTT No 96

GTT Mark III

GTT CS1

Membrane Tanksp < 700 mbar

Full secondary barrier

Integral tanks

IMO Classification of LNG Vessels

Sources: Moss Maritime, IHI, TGE, GTT

Based on classical

ship structure

design rules

Based on first-

principle analysis

and model tests

Pressure vessels,

based on pressure

vessel code

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LNG as Fuel - a Proven Technology

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LNG Fueled Ships - Regulatory Framework

� IMO Interim Guidelines on Safety for Natural Gas-Fueled Engine Installations in Ships (IMO Res. MSC.285(86))

� DRAFT IMO International Code for Safety for Ships Using Gases or Other Low Flashpoint Fuels (IGF Code)

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Interim Guidelines - IMO Res. MSC.285(86)

� Ship Arrangements and System Design

� Materials

� Specific requirements for tank rooms, gas compressor room

� Piping

� Emergency Shutdown

� Gas Fuel Storage

� Liquefied

� Compressed

� Bunkering Station

� Ventilation

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Interim Guidelines - IMO Res. MSC.285(86)

� Fire Safety

� Electrical Systems and Area classification

� Hazardous area zones

� Control, Monitoring and Safety

� Compressors and Engines

� Manufacture, Workmanship and Testing

� Operational and Training Requirements

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Draft IGF Code

� Location of Cargo Tanks

� Ship Survival Capability & Tank Arrangements

� Cargo Containment

� Type A, B, C tanks

� Integral Tanks

� Process Systems

� Controls and Instrumentation

� Ventilation and Venting

� Environmental Control

� Electrical and Fire Extinction

� Use of Cargo as Fuel

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Tank Connection Space/Room Requirements

� Gas fueled ships Type C arrangements

Tank connection

spaceZone 1

Fuel storage room

Zone 2

Ventilation

Gas detectorsFire detectors

LNG tank Zone 0

A-60 boundary

to machinery

space

Independent access from deck

Tank connection space:gastight A-60

ventilation & gas detectioncryogenic material

maximum PBU or ventthermally isolated

Source: Cryo AB

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Dual Fuel Safety Concepts

� Prevention of gas leakage

� Double barriers

� Sealing systems

� Prevention of explosive atmosphere

� Ventilation and gas

detection

� Master gas valve and block

and bleed valves

� Purge and inert

� Explosion mitigation

� Design for worst case

� Pressure relief systemsSource: Hoerbiger

� Suitable redundancy

� Fuel supply systems

� Switch to oil mode (DF engines)

� Stable combustion

� Hazardous area classification

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USCG Regulation Development

� Chemical Transportation Advisory Committee (CTAC)

– Working Group for Safety Standards for the Design of Vessels

Carrying Natural Gas or Using Natural Gas as Fuel

– Margaret Kaigh Doyle, Chair

� Task Statement: Identify gaps in current Coast Guard policy and

regulation:

– Design, installation and operation of natural gas fueled systems

for propulsion of commercial vessels

– Design of novel vessels carrying natural gas in bulk

– Fuel Transfer Operation

– Develop acceptable design criteria/ recommendations to help fill

those gaps

Source: CTAC

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Bunkering & LNG Transfers

� USCG - Chemical Transportation Advisory Committee (CTAC):

� CG-521 Policy Letter No. 01-12 dated 19 April 2012: “Equivalency

Determination – Design Criteria for Natural Gas Fuel Systems

� USCG (CG-OES) Policy Letter No. 01-14: Guidelines for Liquefied

Natural Gas Fuel Transfer Operations and Training of Personnel on

Vessels Using Natural Gas as Fuel (Draft)

� USCG (CG-OES) Policy Letter No. 02-14: Guidelines Related to

Vessels and Waterfront Facilities Conducting Liquefied Natural Gas

(LNG) Marine Fuel Transfer (Bunkering) Operations (Draft)

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Coast Guard Sector Mobile

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Coast Guard Sector Mobile

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Current Gas Fueled Ship Projects in USA

� Six new construction OSVs for Harvey Gulf International Marine being

built at Trinity Offshore, Gulfport, MS

� Two new construction 3,100 TEU Containerships for Totem Ocean

Trailer Express (TOTE), Inc. being built by NASSCO, San Diego, CA

� Conversion of the two ORCA class Trailer Vessels for TOTE, Inc.

� Washington State Ferries – Issaquah Class Ferry conversion program

� Austen Class Staten Island Passenger Ferry conversion pilot program

� Interlake Steamship Co. Laker Conversion project

� Horizon Lines, Inc. Containership Re-powering project

� Two new construction 2,400 TEU Ro-Ro (ConRo) vessels for Crowley

Maritime Corp. being built at VT Halter in Pascagoula, MS

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US LNG Fueled Ship Programs

� Harvey Gulf (6 ships)

� TOTE Container Ships (2)

Source: TOTE, Harvey Gulf

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ABS LNG Bunkering Study Objective

To create a first of its kind guide to assist potential owner/operators of:

� Gas-fueled vessels,

� LNG bunker vessels, and

� LNG bunkering facilities

in the development of LNG bunkering projects in North America by describing:

� Regulatory requirements

� Current and planned LNG supply

infrastructure

� State, provincial, port, and local issues

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Study Overview

� Introduces LNG conversion drivers

� Describes bunkering options

� Introduces hazards, risks and recommended safeguards

� Presents current, applicable regulations, codes, and standards

� Discusses current/planned LNG supply infrastructure

� Provides examples of proposed and ongoing bunkering projects

� Outlines a recommended process for gaining approval of LNG bunkering projects

� Presents local, regional and port-specific issues

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LNG Bunkering Study (www.eagle.org)

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Examples of Other Studies

� Maritime Administration - Liquefied Natural Gas (LNG)

Bunkering Study (DNV-GL)

� Report No.: PP087423-4, Rev 3 (3 Sep 2014)

� LR LNG Bunkering Infrastructure Survey 2014

� Maritime and Port Authority of Singapore (MPA) study on

the technical procedures for LNG bunkering in the Port of

Singapore (LR)

� BV’s Guidance on LNG Bunkering (NI 618)

� ISO “Guidelines for systems and installations for supply of

LNG as a fuel to ships” (DRAFT)

� ISO TC8/WG8 - LNG Fueled Ships

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LNG Bunkering Options

Vessel to

Vessel3

Terminal Tank

to Vessel1Truck to

Vessel2

Alternative:

Portable Tank Transfer

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LNG Bunkering Risk Drivers

Initiating Events Common Causes

Leaks from LNG

pumps, pipes,

hoses, or tanks

• Corrosion/erosion, fatigue failure, hose failure, & seal failure

• Improper maintenance

• Use of inappropriate hoses (e.g., not LNG rated)

• Vibration

• Improper installation or handling

• Improper bunkering procedures

Inadvertent

disconnection

of hoses

• Improper hose connection or hose failure

• Excessive movement of the loading arm or transfer system

• Inadequate mooring or mooring line failure

• Supply truck drives/rolls or supply vessel drifts/sails away

with hose still connected

• Extreme weather or natural disaster

Overfilling vessel

fuel tanks

• Operator and level controller fail to stop flow when tank is full

External Impact • Cargo or stores dropped on bunkering equipment

• Vessel collides with the receiving or bunkering vessel

• Vehicle collides with bunkering equipment

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Recommended Safeguards for LNG Bunkering

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Bow-Tie Diagram Illustrating Recommended Safeguards for LNG Bunkering Operations

Liquefaction

Facility Supply Truck

Bunkering Truck

Portable Tank

Transfer

Bunker Ship/Barge

DC

E

B

F

G

A

LNG

Storage

Tank

Gas-fueled Vessel

33CFR 127: Waterfront Facilities Handling LNG and Liquefied Hazardous Gas (USCG)

33CFR 105: Maritime Security: Facilities (USCG)

NFPA 52: Vehicular Gaseous Fuel Systems Code

33CFR 154: Facilities Transferring Oil Or Hazardous Material In Bulk (USCG)

40 CFR 68: Chemical Accident Prevention Provisions (EPA)

29 CFR 1910.119: Process Safety Management of Highly Hazardous Chemicals (OSHA)

NFPA 59A: Standard for the Production, Storage, and Handling of LNG

49 CFR 193: Liquefied Natural Gas Facilities: Federal Safety Standards (DOT)

E

G

F

33CFR 155: Oil Or Hazardous Material Pollution Prevention Regulations for

Vessels (USCG)

46 CFR Sub D/O: Tank Vessels, Certain Bulk Dangerous Cargoes (USCG)

CG-OES Policy Letter No.01-12: Equivalency Determination – Design Criteria

for Natural Gas Fuel Systems (USCG)

46CFR Parts 10, 11, 12, 13, 15: Merchant Marine Officers and Seamen

Credentials & Requirements (USCG)

33CFR 156: Oil and Hazardous Material Transfer Operations (USCG)

AD

B

C

Potentially Applicable Regulations, Codes, & Standards for LNG Bunkering in the United States

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Potential LNG Supply Sources

� Existing LNG import facilities

� Proposed LNG export facilities

� Existing LNG peakshaving/satellite facilities

� Existing and proposed liquefaction facilities supporting other transportation modes

� Proposed bunkering facilities with liquefaction process

� Proposed bunkering facilities supplied via trucks/transportation containers

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LNG Bunkering Facility in Port Fourchon

� Harvey Gulf building first LNG Bunkering facility in US

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LNG America Bunker Barge

Source: LNG America

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Sabine Liquefaction Project (Cheniere Energy)

� Artist Rendition of New Facility

Source: Cheniere Energy, Inc.

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Sabine Liquefaction Project (Cheniere Energy)

� October 2014 Aerial View of Construction Progress

Source: Cheniere Energy, Inc.

www.eagle.org