SGMF - Gas As A Marine Fuel - An Introductory Guide
SGMF - Gas As A Marine Fuel - An Introductory Guide
SGMF - Gas As A Marine Fuel - An Introductory Guide
environmental
Natural gas as a
marine fuel
technical
gas on board ships as a and the gas-as-fuel business
prime source of energy for differ in significant ways.
propulsion and electricity This guide to gas as a
generation. This trend is marine fuel – an overview
being reinforced by national of these variations and their
and international regulation, implications – is the first
led by the International of many documents that
Maritime Organisation (IMO), the Society for Gas as a
with its Emission Control Marine Fuel (SGMF) plans to
Areas (ECAs). publish. The society is a non-
governmental organisation
safety
The use of natural gas as a (NGO) established to
fuel is one way of complying promote safety and industry
with the increasingly strict best practice in the use of
regime governing emissions gas as a marine fuel. This
of harmful atmospheric initial high-level document
pollutants, such as nitrogen will link to more technically
oxides (NOx) and sulphur and commercially rigorous
oxides (SOx), and reduces guidelines aimed at assisting
the carbon footprint of ship the emerging gas-as-fuel
operations. Liquefied natural industry to develop, with
commercial
1
Introduction
What is LNG? to trace levels during
production
Liquefied natural gas, or
LNG, is natural gas that has Physical properties
been cooled sufficiently to
condense into a liquid. At LNG, a colourless and
atmospheric pressure, this odourless liquid, burns only
happens at a temperature when in its vapour state. Its
of -162°C (-260ºF). As the very low temperature means
natural gas condenses, that at ambient temperature
about 600 volumes of the liquid is always boiling
gas become one volume and creating vapour.
of liquid. This makes it The vapour is heavier
commercially feasible to than air until it warms to
transport large volumes about -110°C. The vapour is
of gas in a ship. The LNG colourless but can be seen
is generally regasified by as it mixes with air because
heating at its destination water vapour in the air is
before being fed into a condensed by the coldness
pipeline grid. of the warming natural gas.
The result is a white cloud.
LNG is a mixture
of hydrocarbons, How is LNG made and
predominately methane where does it come from?
(80 – 95%). Other significant
components include other LNG is produced using a
alkanes – ethane, propane physical process: natural gas
and butane. Nitrogen may is compressed to 50 – 80
also be present at levels up times atmospheric pressure
to 1%. All the more complex and then cooled from
hydrocarbons, along with ambient temperature until it
carbon dioxide and sulphur liquefies.
compounds, are removed
2
environmental
The scale and cryogenic LNG industry overview
temperatures involved
make LNG production Some 237 million tonnes of
much more difficult than the LNG were traded worldwide
underlying physics would in 2013. Japan was by far the
suggest. Liquefaction plants biggest importer (88 million
are frequently valued in tonnes) followed by South
billions, or tens of billions, Korea (40 million tonnes)
of US dollars, require and China (19 million tonnes).
technical
several hundred megawatts Virtually all the LNG produced
of electricity generation was used for electricity
capacity (a megawatt (MW) generation, industrial and
of electricity is sufficient to commercial gas use, and by
power 500 - 1000 European residential customers.
homes), and can occupy an
area of up to 1.5 km2. Statistics show that about 5
million tonnes per year of
As of mid-2014, 18 countries LNG is transported by road
were producing LNG in tanker from bulk import
bulk, with another eight terminals and small LNG
safety
producing smaller quantities producers around the world.
for domestic consumption. Road transportation is most
According to the LNG common in China, Spain,
importers group GIIGNL, Turkey and the USA. Most
the biggest producers in of this LNG is consumed
2013 were Qatar (78 million by large industrial users
tonnes), Malaysia (25 million and power plants that do
tonnes) and Australia (22 not have access to a gas
million tonnes). pipeline network.
commercial
3
are still relatively small.
Most transportation fuel is
used by heavy-duty trucks
or to fast-fill cars with
compressed natural gas. The
gas-fuelled shipping fleet
is also expanding rapidly,
particularly in Scandinavia.
Using LNG to fuel railway
locomotives is being trialled
in the USA and Canada,
while Australian miners
and American shale gas/
oil producers are replacing
diesel with LNG.
4
Environmental
environmental
Why should I use gas? whether worldwide refining
capacity is sufficient to allow
Shipping is the most efficient the reduction in sulphur
way to move most goods content in fuels from 3.5%
globally, making it essential now to 0.5%.
to world commerce.
However, some ship fuels MARPOL also requires
contain 10,000 times as reductions in nitrogen oxide
much sulphur as road fuel. emissions worldwide, but
technical
So, while shipping accounts these limits depend on
for only 2.7% of world carbon engine size and speed. The
dioxide (CO2) emissions, it limits worldwide are based
causes 14% of the sulphur on Tier II limits, implemented
oxide pollution. These and in 2011.
other pollutants damage the
environment in several ways
(see page 6).
safety
The International Maritime
Organisation (IMO), a United
Nations body, controls and
regulates many aspects of
the global shipping business.
IMO, through its marine
pollution protocol (MARPOL),
is working to reduce
emissions of sulphur and
commercial
5 5
Sulphur Oxides (SOx)
SOx is a mixture of sulphur dioxide (SO2) and sulphur trioxide (SO3)
which quickly converts to sulphuric acid (H2SO4) in the presence of
water. The latter is solid and ends up in the particulate matter (see
below). SOx combines with water to form “acid rain”, which acidifies
oceans and damages plant life.
Methane (CH4)
Methane is a greenhouse gas with a 100-year global warming
factor of 25 compared with the 1 of CO2. There are two broad types
of engine, two-stroke and four-stroke. Losses of methane can occur
in four-stroke engines as fuel gas is pre-mixed outside the cylinders
and then injected at low pressure. This is called methane slip.
6
environmental
Emissions levels of fuels unaided. HFO has NOx levels
marginally higher than, but
SOx emissions depend on generally comparable with,
the amount of sulphur in MDO. Oil-fired systems will
the fuel. The gas used for need to be equipped with
LNG production is cleaned Selective Catalytic Reduction
prior to liquefaction. Typical (SCR) technology or Exhaust
sulphur specifications in Gas Recirculation (EGR) to
LNG are less than 30 parts reduce NOx emissions to
technical
per million (ppm) of total levels comparable with LNG-
sulphur. This calculates to fuelled engines. Some LNG
about 0.004% of sulphur by engines may also need SCR.
mass. LNG sulphur levels are
therefore 1/875th of current LNG produces minimal
heavy fuel oil (HFO) limits and quantities of particulate
1/25th of future ECA limits. In matter but dual-fuel engines
comparison marine diesel using LNG and diesel will
oil (MDO) contains about create PM. Using LNG
1% sulphur and marine gas reduces PM emissions
oil (MGO) 0.1% sulphur. EN compared with HFO engines
safety
590 diesel (road fuel diesel by about 90%. MDO is also
used by inland waterway better than HFO on PM.
vessels in Europe) has only
0.001% of sulphur. MDO and What is an Emission
HFO would need scrubber Control Area?
technology to comply with
ECA limits. An Emission Control Area
(ECA) is an area in which
NOx emissions are very the emission limits for SOx
dependent on engine load (sulphur oxides) and NOx
commercial
7
Environmental
Within an ECA the maximum and the US Virgin Islands)
allowed sulphur content in came into force in January
ship fuel today is 1.0% (by 2014.
mass) and will lowered to
0.1% by the 1st January 2015. Inland waterway traffic in
Similarly NOX will be set at Tier western Europe (Belgium,
III limits within ECAs from 2016. Germany, Netherlands
and Switzerland) already
There also exist Sulphur effectively operates as an
Emissions Control Areas SECA, with a limit of 10 ppm
(SECAs). The first was the Baltic of sulphur in diesel fuels.
Sea (since 2006) followed by ECAs have been proposed
the North Sea (2007). for many other areas but
are yet to be fully defined,
The first complete ECA is the accepted or have any
North American ECA (2013). certain timescale for
A smaller ECA around the US implementation.
Caribbean Islands (Puerto Rico
Hawaiian
Islands
North Sea
8
environmental
How will ECAs be Are there alternative
regulated? options?
technical
including: meeting the tighter emissions
limits. Three options are
• Large fines generally regarded as the
main alternatives: a switch
• Prison sentences to MGO, installation of
• A vessel not being scrubbers, or a switch to a
allowed to leave port variety of other fuels.
until it has the right MGO
amount of fuel on
board with the correct Marine Gas Oil (MGO) and
sulphur content Marine Diesel oil (MDO)
safety
can be used in many
• A vessel being detained existing ship engines that
in its next port of call if have traditionally operated
the results of sampling on heavy fuel oil (HFO).
come in late MDO tends to create more
• Fines based on what particulate matter and
a ship could earn on potentially SOx – so would
cargo / fuel costs need careful specification
to ensure compliance
with ECA limits. MGO
commercial
9
Environmental
Again, the exact specification onshore is allowed only at a
requires careful analysis limited number of specialist
before purchase. Therefore centres and may be very
MGO may be a direct expensive.
replacement option on a
technical basis. However, Additional NOx abatement
it costs substantially more technology will need to be
than HFO. fitted to most vessels to
Scrubbing comply with Tier III limits. This
uses a catalytic process (SCR)
Ships may continue to burn based on injecting urea into
HFO in their engines if they the exhaust gas.
then treat the exhaust gases
to reduce SOx and NOx Alternative fuels
emissions to comply with A variety of alternative fuels
the limits. CO2 production are under consideration, with
is not reduced. Scrubbers hydrogen seen by many as
can be fitted to the engine the fuel of the future in the
exhaust system. The cost of long term. Hydrogen can be
installation is significant, and used in fuel cells to generate
the space requirements and electricity, which can then be
weight of the equipment will used to drive ship propulsion
also need to be considered. systems. A move towards
electric propulsion using
Scrubbers usually remove traditional engines as power
only SOx. Disposal of the generators is already under
waste products may also way.
be an issue. Disposal at sea
would lead to acidification Methanol is gaining some
– so many European port popularity as an alternative
states are imposing limits fuel. It is widely available
on marine discharges from as it is a petrochemical
scrubber systems. Disposal
10
environmental
feedstock. It is also used in Why can’t I just use
a limited way as an engine compressed natural gas
fuel (“wood alcohol”). A few (CNG)?
ferries are trialling methanol
on the Scandinavian/Baltic Compressed natural gas has
trades. However, it is highly been used for many years
toxic, is miscible with water, as a road transportation
and has a low energy fuel and more recently for
content per unit volume ships. A CNG-fuelled ferry
technical
(energy density), so extra is operating in Brazil. The
space is needed for fuel problem with CNG, and to
tanks. Methanol is only seen a lesser extent LNG, is its
as interesting for bunker fuel energy density. CNG stored
if it is available at very low at 250 times atmospheric
cost. pressure has an energy
density of only about 9
Liquid ethane carriers are million Joules/cubic meter
also going to use ethane as (MJ/m3). LNG is more than
fuel, just as some bulk LNG twice as good as CNG at
carriers use natural gas. 22.2 MJ/m3. Petroleum
safety
fuels remain better at about
35 – 40 MJ/m3. This means
that CNG vessels will have to
have large fuel tanks or short
distances between refuelling.
commercial
11
Technical
Who is doing it? – including the Netherlands,
Finland, Belgium, Germany
Interest in the use of LNG and France – are also
as a bunker fuel is growing involved or have ordered
rapidly, not just in ECAs but vessels for their coastal or
around the world. short-sea trades.
Europe US / Canada
Norway, the country that North America started later
pioneered the technology, than Europe. However,
continues to push forward the amount of activity over
with more vessels. The the last 18 months means
European Union (EU), with 28 that this region looks set
member states, is attempting to overtake Europe very
to develop a co-ordinated quickly – primarily in the
approach to the use of USA, but also in Canada. No
LNG as a marine fuel, with LNG-fuelled vessels are yet in
a particular emphasis on service but ten vessels are on
the SECAs in the Baltic Sea order in the USA and another
and the North Sea/English three in Canada. Many more
Channel. will follow.
Far East
Most of the gas-fuelled
vessels in service are in Japan and China are both
Norway. The first vessel very active in putting systems
entered service in 2000 in place to enable LNG to
and by the end of 2013 be used as a marine fuel.
the Norwegian fleet had However, it is South Korea
increased to more than 30 that has built the first vessel.
vessels. It is in service in Incheon
The lead nations within harbour. China has two
the EU are Denmark and LNG-fuelled tugs in service
Sweden but other countries
12
environmental
environmental
with CNOOC, one of the Big fuelled, gas turbine-driven,
Three national oil and gas high-speed ferry entered
companies, and has ordered service in 2013. Brazil has a
many inland waterway CNG ferry in operation.
vessels. Japan looks set to Indonesian ferry owner Pelni
order its first LNG-fuelled is examining converting
vessel, to operate in Tokyo its 26-ship fleet to LNG
Bay, later this year. with national oil and gas
company Pertamina.
technical
technical
Rest of the world
Australia is close to ordering
Probably the world’s most its first gas-fuelled ferry to
advanced LNG-fuelled ship run between Melbourne and
operates between Argentina Tasmania.
and Uruguay. The gas-
None of these vessels
operate in ECA zones.
safety
safety
70
60
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commercial
commercial
10
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Norway Other Europe US/Canada Rest of World
13
Technical
LNG-fuelled fleet
Gas-fuelled Ferry
14
environmental
LNG bunkering facilities LNG infrastructure will be
completed by 2020 and for
LNG is available for inland ports by 2025. To date
marine fuel use in the Denmark, Estonia, Finland,
European ports of Antwerp, France, Germany, Norway,
Amsterdam, Rotterdam, Spain, Sweden and the
Stockholm and Zeebrugge. UK are considering where
LNG can also be bunkered to locate LNG bunkering
at the Norwegian ports of facilities.
technical
Bergen, Florø, Karmøy, Oslo
and Risavika/Stavanger. In There are several ports
most cases this is by road under development in North
tanker; however in Bergen America, mostly in the Gulf
there is a dedicated terminal of Mexico and around the
and Stockholm has a bunker Great Lakes, but also for ferry
vessel called Seagas that operations on the west coast
provides LNG fuel. Ports in
Finland, Italy and Spain have South Korea is able to offer
also loaded LNG as bunker. LNG bunkering in the port
of Incheon and is looking
safety
All these ports are able to at a second facility at
offer LNG to prequalified Busan. Elsewhere in Asia,
vessels that are compatible Singapore, Japan and China
with the LNG-loading are looking at LNG bunkering
infrastructure. EU policy is facilities.
to have at least one LNG
bunkering port in each
member state. About 10% of
European coastal and inland
ports will be included, a total
commercial
15
Technical
Projections for the future higher gas-fuelled ship
numbers early, growing to
There is no question that LNG a total of 3,200 vessels by
as a marine fuel has arrived; 2025.
what we have yet to see is
how large the industry will Other commentators have
grow to and how quickly. looked at the overall size of
the fuel market and at how
The industry has made gas-fuelled ships would
several forecasts but as impact the global, bulk LNG
yet there is little alignment business. Most of these
between them. Lloyds forecasts are significantly
Register provided a detailed less optimistic than the
review of the potential DNV GL fuel forecasts. Most
growth scenarios in 2012. Its commercial commentators
optimistic scenario predicted – including Poten & Partners,
about 2,000 ships by 2025. Wood Mackenzie, CERA and
This would be an average Total – predict 20 – 30 mtpa
of about 150 ships per year, of LNG by 2030. This would
significantly more than the require about a 10% growth
14 ships delivered in 2013 (20% for the most optimistic
and the 22 ships expected in scenario) in today’s LNG
2014. Most of the growth in production just for fuel use.
the Lloyds Register scenario LNG industry commentators
takes place after 2020, when such as BG Group are
the IMO is proposing to already suggesting that the
impose worldwide sulphur LNG business will be supply-
reductions. DNV GL’s latest constrained for its traditional
forecast (2014) appears to business model over this
extrapolate from recent period.
deliveries and so predicts
16
environmental
What does a LNG-fuelled
ship look like?
technical
currently being developed by
IMO under the International
Code of Safety for Ships
using Gases or other Low
Flashpoint Fuels (IGF Code).
An interim set of rules is
currently in place under
MSC.285 (86). The IGF Code
is currently being finalised
and is expected to be
released in the next version
safety
of SOLAS (Safety Of Life At
Sea) in 2017.
advice.
17
Technical
Ship design
18
environmental
Ship fuel systems
technical
allowed to contract without the inner pipe and a leak
damage as it cools. Valves detection system provided in
must be included to isolate the outer pipe.
the LNG storage tank or any
other significant volume
of LNG. If the pipes start to
warm, pressure-relief valves
must be provided to allow
vapour to escape.
safety
m/t Bit Viking with two 500m3 Type C tanks
commercial
19
Technical
Redundancy of the fuel Control systems
system is considered
essential. This is preferably The engines, LNG tanks
based on multiple LNG tanks, and fuel systems should be
each with its own fuel system capable of being monitored,
providing fuel to multiple controlled and shut down
engines. from outside any potentially
gas containing space.
Power generation & Suitable instrumentation
propulsion should be provided
to monitor tank levels,
The code covers gas-only pressures and temperatures,
engines, dual-fuel gas to review the operation of
and oil engines, multi-fuel ventilation systems, and to
engines (such as methanol), detect the escape of gases
gas turbines and fuel cells. or – in the worst case – the
Redundancy is the key issue outbreak of fires.
– with a vessel needing to
continue to operate with the An Emergency Shut-Down
failure of one engine. The (ESD) system is required. It
use of multiple engines, each should be capable of being
in a separate machinery triggered manually from
space, is the preferred option multiple locations on the ship
in the code. and automatically by specific
occurrences, for example
For dual- and multi-fuel gas detection. Safety
engines, an automatic monitoring systems should
fuel changeover system have their own dedicated
is required, which must and independent control
operate on the failure of one systems.
fuel supply system.
20
environmental
Bunkering facility
technical
need to protect the ship’s
steel structures are also
highlighted.
safety
commercial
21
Technical
What does a
bunkering system however, will require the
ship needing fuel to sail
look like? to the LNG terminal. Large
terminals will have storage
There are four different tanks that operate at
options for refuelling an atmospheric pressure and
LNG-powered vessel. bunkering will take place
using pumps. This type of
LNG terminals terminal will be supplied by
large LNG tankers and will
LNG terminals can transfer often be the supply source
LNG to ships directly without for road tankers and bunker
using any intermediate vessels. Small terminals
transfer system. This, are similar to road tankers
and most bunker vessels as
Bunkering options
22
environmental
they use pressurised tanks typically serves the smaller
to store their LNG. They will end of the LNG transfer
receive LNG either from LNG market. Emptying a single
carriers or manufacture it road tanker can be achieved
themselves. LNG transfer using a pressure differential
will normally be by pressure between the tanker and
differential. the ship and typically takes
about an hour. Multiple road
Bunker vessels tankers can be unloaded
technical
simultaneously, depending
LNG can be transferred from on the LNG volume required
bunker vessels or even small and the piping arrangement.
LNG carriers, which can be
moored alongside ships Containerised LNG
anywhere in a port. Transfer
of LNG can be by pressure LNG tanks can be provided
difference or, if high speeds within standard 20 foot and
are required, by dedicated 40 foot container sizes and
LNG pumps. There are no comprise a Type C LNG tank,
physical restrictions on the similar to a road tanker,
safety
amount of LNG that can be inside a container-shaped
stored on a bunker vessel, steel frame. Many road
so one bunker vessel may transport operations now use
be able to service more than LNG containers on flat-bed
one ship. trucks rather than custom-
built road tankers.
Road trucks
For gas as a marine fuel,
LNG road tankers are limited LNG could be provided and
by weight through road stored by such “cassette”-
commercial
23
Technical
or driven on board and The disadvantages of this
connected to the fuel system. technology are that it is not
Empty tanks would be space-efficient, particularly if
disconnected and removed. located within the hull, and is
relatively expensive.
Bunkering system
components The iconic, free-standing,
Moss Rosenberg spheres
The bunkering system are extremely robust in
consists of an LNG tank to terms of strength and
hold the LNG, a transfer operability but take up very
system that connects this large amounts of space.
to the tank on the ship that It is therefore difficult to
is to be filled, and a control envisage any LNG-fuelled
system to enable the transfer. ships adopting this tank
technology. Self-supporting
LNG Storage tanks Prismatic type B (SPB) tanks
are effectively cuboid in
A variety of LNG storage shape and can be designed
tanks are (or will be) to fit comfortably within most
available to hold LNG. hull shapes. The tanks have
Most of these tanks have internal strengthening and
operated successfully on LNG structural systems which
carriers operating in the bulk make them very robust but
international LNG business. also expensive and relatively
IMO Type C tanks are heavy.
pressure vessels whose
internal pressure may be Membrane containment
increased to several times systems use thin metallic
atmospheric pressure. This barriers supported by the
is very attractive for the LNG strong hull structure via
bunkering process as it load-bearing insulation
avoids venting any cold gas.
24
environmental
arrangements. The
membrane is subject to
deflection loads as the
hull moves, and therefore
requires a duplicate
“secondary barrier” to protect
the hull in case of failure
of the primary membrane.
Membrane tanks can be
technical
made into any shape so can
be used space efficiently
within a hull. However, the
membrane is thin and can
be damaged by “sloshing”,
waves generated within the
LNG tank by ship movement.
The shape of the tank and
the strength of the insulation
needs careful consideration
to avoid sloshing issues.
safety
LNG bunker transfer system
25
Technical
Flexible piping system
26
environmental
performance. That said, the
continuous movement of the
swivels during bunkering
may lead to maintenance
and component lifetime
issues.
technical
Emergency release
couplers (ERCs) have been
introduced to limit – indeed
almost eliminate – LNG
spills should the system
need to be disconnected
in an emergency. An ERC
consists of two valves that Emergency release coupler
close automatically in an
emergency shut-down to monitor the filling process
scenario. Between the two and prevent any hazardous
safety
valves is a coupler that scenarios – such as over-
can break away, allowing filling or over-pressurisation
separation of the two vessels – developing.
with the only spillage being
the small amount of LNG
trapped between the two
valves.
Control systems
commercial
27
Technical
Bunkering process the seller of the LNG. In this
capacity the PIC will provide
Bunkering an LNG-fuelled the correct amount and
vessel involves many quality of LNG. The PIC is
stakeholders and has several responsible for the safety of
stages. the LNG supply and transfer
equipment. The PIC will also
The master of the vessel to be responsible for complying
be fuelled retains control with any local safety,
over the ship. The master is environmental and maritime
acting on behalf of and in requirements. If, at any
the interests of the buyer of stage, the transfer process
the LNG. In this capacity the fails to comply with the local
master must approve the regulations, the PIC should
quantity and quality of the terminate the transfer.
LNG that will be bunkered.
The master must also The choice of filling method
ensure that the LNG transfer will depend on many factors,
process is safe and that including: the compositions
environmental impacts are of the LNG in the tank and the
minimised. If these basic LNG fuel; the temperatures
requirements do not continue of both LNG volumes; the
to be met at any time during filling rate; and the pressure
bunkering, the master has ratings of the LNG tanks.
the right to terminate the
process. The bunkering process is
summarised in the flow
The Person In Charge (PIC) diagram on the right.
is in control of the transfer
of LNG. In most scenarios
the PIC will act on behalf of
28
environmental
Flow diagram of a typical bunkering process
technical
safety
commercial
29
Safety
Is LNG safe? Handling cryogenic liquids
30
environmental
Cold gas is heavier than air not ignite, it should safely
and so leaks will roll down disperse in the atmosphere.
and along a deck or water
surface. They are usually very Fires & firefighting
apparent as the cold gas
condenses water vapour in Vapour from boiling LNG is
the air to form a white cloud. flammable, which is why LNG
As it spreads, the cold gas is used as a fuel. If LNG spills
starts to warm. Its density and starts to evaporate, there
technical
therefore decreases and the is potential for a fire to start
gas becomes more buoyant. if an ignition source is close
At about -110°C the cold gas by. Natural gas ignites only
becomes lighter than air and in mixtures of between about
starts to rise. The direction 5% and 14% by volume in
and speed of gas dispersion air. Wherever the gas cloud
is highly dependent ignites, the gas will rapidly
on prevailing weather burn back to the leak source,
conditions. If the gas does where it will continue to burn
safety
Dense white
cloud formed
by vaporising
a liquefied
gas (nitrogen
commercial
in this case)
spreading
over water
31
Safety
until it is extinguished or all regarded in the marine and
the LNG has combusted. hydrocarbon industries as
In very specific circumstances best practice. This view is
the ignition of a fire may based on their high-quality,
be so violent that a form of robust safety systems and
explosion can occur. overall attention to detail in
design, solid construction
Designing in safety and stringent operational
practices. These factors
The greatest benefits of combine to minimise
safety analysis are at accidents, incidents and
the design stage, which product releases.
is when most proposed
safety improvements Multiple layers of protective
can be accommodated measures are implemented
relatively easily. During and to prevent a hazardous
after construction some scenario escalating into an
safety improvements may actual safety incident.
no longer be possible at
reasonable cost, for example Layers of
if they require the altering or protection
moving of major systems or principles
hull components.
32
environmental
Simultaneous failure of is normally where the
multiple layers of protection arguments begin. Some
is unlikely. supposedly credible
scenarios may lead to large
Safety distances and safety distances, of perhaps
exclusion zones up to 100 metres or more.
technical
sources away from the in many onshore LNG
LNG and any potential facilities. It uses the same
leaks, while simultaneously consequence calculations
minimising the potential for as the deterministic
scenarios that could lead to method but also assigns
damage, such as collisions. probabilities or frequencies
The size of safety zones to the chance of an event
can be calculated by one occurring. The safety
of two generally accepted distances generated are
systems. The choice will examined on the maximum
usually be at the discretion of risk to an individual worker/
safety
the local regulator and may member of the public and
also depend on the type of the societal risk to the wider
bunkering being used. community. Safety distances
here can be small to very
The maritime industry small. The weakness of this
has generally used a method is the ability of the
deterministic approach, hazard assessor to source
in which distances are appropriate frequency data
calculated for certain failure and independently assess
scenarios. These scenarios hazard scenarios.
commercial
33
Safety
Probablistic risk-based
assessment
Risk assessment
34
environmental
The results of such risk Safety management systems
assessments must
be incorporated into Management systems and
the operational and procedures must reinforce
maintenance procedures staff behaviours around the
as appropriate. Full risk implementation of safety
assessment consists of much to ensure that policies are
more than just a Quantitative effective. Alongside risk
Risk Assessment! A HAZard assessment, the use of
technical
and OPerability (HAZOP) safety manuals, appropriate
study – in which each major working procedures/
equipment component is practices and training are
examined for a variety of crucial.
mal-operations and the
impact of the effects of poor Any work also needs to
performance is quantified – be seen in the context of
is particularly appropriate. the whole plant or vessel
– to ensure that one task
Risk assessment is not a does not interfere with
one-off process; it needs or cause safety concerns
safety
to be repeated every time for other tasks/workers.
something significant Particular emphasis should
changes. This may be a be placed on non-routine
new vessel to be fuelled operations, where it may
(if substantially different not be straightforward to
from others fuelled), the understand all the hazards
use of different bunkering involved.
equipment, and/or changes
in operating procedures. Modifications should go
through a risk assessment
commercial
35
Safety
Will simultaneous How do I plan for
operations be allowed? emergencies?
36
environmental
of an event for the wider The emergency plan
community. Typically the needs to be tested at least
police are the main agency annually. Tests can range
and the local authority from desk-top exercises
will need to be involved, involving only senior staff
particularly if a public from the emergency services
evacuation is required. to full-blown simulated
Dealing effectively with emergencies, with fire
media interest is an appliances in attendance
technical
important part of this activity. and ambulances treating
Both the bunker supplier and simulated casualties.
the ship owner should be
involved.
safety
and the bunkerer – especially
in the case of a terminal
– is likely to have more
experience and knowledge
in LNG fire-fighting and first
aid than the emergency
services. This can be a cause
of conflict. Supporting the
training of key members of
the emergency services and
commercial
37
Safety
What training is required? There is concern over
“regulatory clash”, the
Working together mismatch of onshore rules
(frequently competence-
Bunkering is a two-stage based but with criteria set by
process – one party operators and approved by
supplying the fuel and regulators) with prescriptive
the other receiving it. The shipping rules and IMO
two crews need to work training systems.
together so both must be
trained. It is probably not Training for mariners
possible to train everyone
in everything but the basic Gas-as-fuel training for
mental model between the mariners will come under
two parties should be shared the International Maritime
to enable understanding. Organisation’s (IMO’s)
Communication and Standards of Training and
co-ordination are key Watchkeeping Committee
to successful and safe (STCW). A four-level system is
bunkering. anticipated:
38
environmental
and how these should training and experience on
be dealt with on the operating (or training) ships.
vessel.
• Advanced training Training for bunker
for all officers and vessel staff
engineering crew
involved in the From a regulatory point
operation of the gas- of view, bunker vessels
fuelling system and are considered to be LNG
technical
the LNG-bunkering carriers as they transport LNG
process. cargo in bulk. The existing
• Equipment specific training requirements of
training, probably from STCW under the IGC Code
the vendors, for the would therefore apply to
actual systems used on bunker vessels, rather than
the ship. This too would any system proposed under
lie outside the STCW IGF. Some elements of the IGF
code. code training process may
also apply.
DNV GL has suggested an
safety
alternative approach for Training for terminal staff
the advanced training that
would involve separating It is normally a legal
out different learning requirement for LNG
requirements for deck and import terminals and small
engineering staff, based on liquefaction plants to provide
their actual roles within the training for their employees
gas/LNG storage, transfer in the hazards of LNG and
and engine operation. the company’s operating and
maintenance procedures.
commercial
39 40
Safety
Training for road tanker operators
40
Commercial
environmental
How much does LNG cost?
technical
carriers. Secondly, there are the cost of producing and
the smaller local producers distributing LNG at small
that produce LNG for local scale. Bulk, internationally
markets. The price of LNG supplied, LNG would
will depend on which of compete with this price but
these models is used and would need to show that
where in the world it is the upstream profit, where
sourced from. most of the risk is taken, is
commensurate with other
Gas and LNG are sold on international gas trading
an energy basis, typically in options.
safety
British thermal units (Btu).
(Because a Btu is a very Comparing the economics
small measure of energy, of LNG bunker with oil
a Btu is about 4 calories, is difficult, because they
the most common unit is depend on the precise
a million Btu, or MMBtu.) compositions of the LNG and
The price of gas varies by the oil. They also depend on
location, from country to engine type and efficiency.
country and within countries. Build-up of LNG bunker
prices
commercial
41 42
Gas Fields (on or off shore)
42
Gas Treatment
Bulk LNG Liquefaction
If price insufficient Terminal
Cargo diverted
Gas Market Price Minus
Bulk LNG Shipping Bulk LNG Shipping
Alternative Gas Bulk LNG Import Gas Transmission
Market Price Terminal System
Commercial
MDO 20 - 21 23 - 24 21 - 22
technical
Natural Gas 7-8 4-5 15 - 16
safety
indexation. Historically this bunker prices being based
has been against an oil or a on either NBP prices or those
basket of oils. Increasingly, at the Dutch equivalent, the
gas indices are being Title Transfer Facility (TTF).
used in price-formation
mechanisms – usually The oil equivalents include
Henry Hub in the USA or the the price of oil from Brent
National Balancing Point (an oil field in the UK sector
(NBP) in the UK. The price of of the North Sea), West
the LNG therefore generally Texas Intermediate (WTI)
commercial
rises and falls in line with oil in the USA, and the Japan
or gas prices, depending on Crude Cocktail (JCC) price
how it is indexed. in Asia (also referred to as
43
Commercial
the Japan Customs-cleared On the LNG delivery side
Crude price). there is no definite answer
as yet. However, existing oil
What commercial bunkering contracts – and
agreements will I need? Bunker Delivery Notices
(BDNs) – are not dissimilar
There are two operations to the documentation used
that need to happen for LNG in the bulk transportation of
bunkering to take place. LNG. So alignment should
Firstly, the bunkerer has to be possible. One of the
purchase LNG from a bulk technical committees of
importer or local liquefaction the European Sustainable
company. Secondly, the Shipping Forum is
ship owner/operator has to developing a standardised
purchase LNG fuel from the LNG BDN.
bunkerer. In between LNG
supply and ship bunkering Differences between
may be some form of LNG & oils
delivery contract to cover
the costs incurred by third LNG differs from oils in that it
parties, for example road is an evaporating liquid. Any
truck operators. heat ingress boils off some
of the LNG to create what is
The LNG supply side is called Boil-Off Gas (BOG). It
well covered by existing consists of the most volatile
commercial practices. components, normally
Many different models nitrogen and methane.
exist but companies and
specialist energy lawyers As BOG is generated, the
should be confident of composition (or quality) of
the continuation of these the LNG gradually changes.
models with relatively minor Over many days or weeks
modifications. significant changes in
44
environmental
composition can occur. volume and the density the
This is called “aging” or mass of LNG transferred
“weathering”. Sampling is calculated. To ensure
for quality measurement accuracy – this type of LNG
therefore needs to take custody transfer is accurate
place close to the time of to ±1% – many corrections
LNG bunkering, preferably at need to be made for cargo
the same time, but otherwise temperature and pressure,
within a few hours. list and trim of the LNG
technical
tanker, and from calibration
Depending on the LNG tank of the tanks and the
type, rate of bunkering and measuring instrument. The
composition of the LNG, LNG importers’ group GIIGNL
BOG may be generated provides detailed guidance
during bunkering. In the on this method.
bulk LNG industry this BOG
is returned to the supplier A similar method could
(for example, the bunker be used on a bunker
vessel) and may have a vessel. The apparently
financial value. Therefore laborious measurement and
safety
two flows potentially need to corrections are normally
be measured, both the liquid performed by computers
LNG and the gaseous BOG. in the custody transfer
system and so require only
Quantity measurement occasional cross-checking
and calibration.
LNG in bulk has always been
measured by recording The alternative from the
tank levels before and after LNG road fuel market, and
the transfer. The density to a certain extent LNG
commercial
45
Commercial
loaded on weighbridges to Vaporisation must be very
accurately determine the fast to prevent volatile
mass of LNG transferred. components leaving
Filling LNG-fuelled trucks prematurely and to ensure
uses a system similar to a that no residual components
petrol/gasoline or diesel are left as liquid. This
pump with a totaliser system analysis is used to calculate
based on a mass flow meter. the density and the calorific
Coriolis meters are the value of the LNG. As with oil,
normal technology choice. gas samples need to be kept
in case of appeal by one
party against another.
Sampling & quality
calculation
46
The Society for Gas as a Contact Us
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