Slides presentate a Roma il 25 febbraio 2014 in occasione del Workshop "Il GNL è per tutti. Le prospettive di utilizzo del metano liquido per i service vessels, i traghetti a corto raggio e le marinerie minori" promosso da @ConferenzaGNL, un progetto a cura di Symposia e WEC Italia - TWITTER #GNL

1. LNG as Marine Fuel
Conferenza GNL – III Workshop
Civitavecchia – 25th February 2014
Andrea COGLIOLO
Deputy General Manager Marine

2. Index
Regulation
Laws & Authorizations
Technical Solutions
Logistic Scenario
Financial Issues
Social Perception

3. Regulations
MARPOL Annex VI
IMO require a progressive reduction of emissions from ships
NOX
SOX
-
ECAs (Baltic and North Sea, English
Channel and USA /Canada coastal
Global
CO2
1.
2.
Technical measures:
Energy Efficiency Design Index (EEDI) new ship
Operational measures :
Ship Energy Efficiency Management Plan (SEEMP)

4. Means to reduce
emission are available
NITROUS
OXIDES NOX
• Dual fuel engines (LNG)
• Exhaust gas treatment
(SCR Selective Catalytic
Reduction)
SULPHUR
OXIDES SOX
Regulation
CARBON
DIOXIDE CO2
• Dual fuel engines (LNG) • Dual fuel engines (LNG)
• Sulphur content in fuel
• Exhaust Gas Treatment
(scrubber)

5. LNG Carrier
IACS – UR 1996
Control and Safety
Systems for Dual Fuel
Diesel Engines
Pt.C , Ch 1, App 2
RINA Rules – 2000
DUAL FUEL DIESEL
ENGINES
Regulation

6. Present and future
Regulations
IGC ???
Regulation

7. Present and future
Regulations
Regulation
Ship’s Flag
Administration
authorization
IGF Code
Exp. 2014

8. Future Regulations
Low temperature of liquid gas
freezing - cold leak/jets brittle cracks
Gas tanks:
large energy content
Regulation
flammability after vaporization
- hazardous area - electrical
equipment

9. Future Regulations
Regulation
Hazard Identification and Risk Ranking
Hazard Control
Technological Safety – Safety Management - ERP

10. Technical Solutions
Source Ship spotting

11. Technical Solutions
by courtesy of Lauro Shipping SPA

12. Technical Solutions
by courtesy of Rosetti Marino SPA

13. Technical Solutions

14. Technical Solutions
LNG tanks
 fixed
 longitudinal position
 transversal position
 vertical position
 portable
Engines
 gas only
 dual fuel
 high and low pressure
Propulsion
 Diesel Electric
 Diesel
Fuel (LNG) automation
 alarm systems
 control systems
 safety systems
LNG
 storage
 delivery
 bunkering
New design solutions
new training needs

15. Technical Solution
Training needs
RINA - Lloydlist
Safety first in the dash for gas
Monday 25 July 2011, 16:53
As more vessel types take up the cost and environmental benefits of gas-powered shipping, it is becoming
increasingly important that crew are trained properly in its use. GAS-fuelled ships are one way forward to
reduce air emissions.
But in the dash for gas we must ensure that lower emissions don't mean less safety.
Carrying and using gas at sea requires a culture that is present on gas carriers, but which is not found on
most other ship types. We need to take great care when we extend gas power to other ship types.
Substantial changes are needed to the structure and outfit of the vessel, and the crew need to be trained
to understand the new fuel and its risks.

16. Training needs
Logistic scenario
A13 – I13 Lack of skilled seafarers
Depending on the number of LNG propelled ships in 2020/2030 the number of seafarers can be (…) a
significant fraction of the more than 1,2 millions seafarers demanded in 2020 (…).
The likelihood of the issue not to be solved is judged low since it will be demand driven and passage to
LNG will occur gradually.
The direct impact of not having the necessary workforce trained is high since it directly affects the
possibility to safely operate LNG fuelled ships.
The possibility to manage the issue is judged high since training programmes can be established in due
time before 2020.
Aspects related to this issue are:
- lack of training infrastructures
- training of ashore personnel

17. Where is LNG ?
Small scale
distribution:
Logistic Scenario
Norwegian solution
not existing in other
countries
Source
Marino Rosetti

18. Logistic Scenario
Where is LNG ?

19. Logistic Scenario
Fig. is courtesy of The DMA

20. Laws & Authorizations
Authorization Aspects
 Regulation & authorization procedures for on shore installations
On shore rules & local authorization
for LNG Terminals

21. Laws & Authorizations
Authorization Aspects
 Common standards and procedures for LNG bunkering
Fig. is courtesy
of The DMA
A study on LNG bunkering rules and procedure, commisioned by EU,
has been just published

22. Authorization Aspects
Laws & Authorizations
 Common standards and procedures for LNG bunkering

23. Financial Issue
Actual context
The market currently does not exist
An effective mechanism to create such a market is needed
The capital involved has to cover investments for :
• new LNG fuelled Fleet
• existing ship retrofit
• logistic infrastructures
Not all existing infrastructures are fit to serve the LNG ship related
market

24. Logistic Scenario
Market start up
Four Main Actors
Shipowners
New buildings &
retrofits
Shipbuilders
& Makers
Strategic view
Regulations
Authorizations
Governmental
Authorities
Gas supply & pricing
Infrastructure develop.
Management of logistic
Gas providers

25. LNG price
Financial Issues
Price highly dependent on
the considered country.
Difference:
from 3 to 19 $/MMBtu.
However…
The difference between
U.S. and Asian gas is
poised to drop by more
than 60 percent by 2020.
Source Bloomberg
Jan 2013

26. LNG price
Financial Issues
650 USD/t (=15.3 USD/mmBTU) for HFO.
900 USD/t (=21.2 USD/mmBTU) for MGO.
13 USD/mmBTU for LNG (considering 4 USD/mmBTU + small scale distribution costs).

27. Social Perception
 LNG is flammable
 LNG is dangerously cold
 LNG is clean YES but Not In My Back Yard

28. Social Perception
Transparent communication on real facts
•
Overall, the LNG industry has an excellent safety record
•
LNG has been safely delivered across the ocean for
– over 40 years
– over 45,000 LNG carrier voyages
– more than 100 million miles,
without major accidents or safety problems either in port or on the
high seas.

29. Social Perception
Some countries have already solved
the NIMBY issue

30. Coal
Oil
LNG
Wind
Are we going to experience a similar epochal change ?
Thank You !