1. Times they are slowly a changing:
FUTURE OF LNG TANKER SHIPPING LIMITED
Quite a few people are convinced that LNG fuelled vessels needto be favoured as
environmental mode of transport over bunker oil or diesel fuelled ships. Yet, transition
to renewables, such as LNG, is hampered by low oil prices and low earnings,
insufficient infrastructure in ports and hinterland and the bleak situation of the
shipping market as a whole. “It’s time for long term investments”, experts say.
It seems that there is only one incentive to invest in LNG fuelled tanker ships: the MARPOL
Annex VI rules for Sulphur Emission Control Areas (SECAs, for the Baltic Sea and the North
Sea) and Emission Control Areas (ECAs, enforced in North America and the Canadian
Coast).
One may assume that shipowning companies , such as Swedish-based Terntank , may have
invested in LNG fuelled tankers out of self interest. Their tankers are solely deployed in the
Scandinavian waters, so they have to invest in cleaner ships anyway. Besides that, Terntank,
Wärtsilä, NEOT (North European Oil Trade) and ZVT (Collaboration Method Zero Vision
Tool) and supporting organisations plus EU member states Denmark, Finland and Sweden
can benefit from a EU TEN-T co-funding scheme for the BalticSO²Lution project as a
stimulus to invest in clean fuelled vessels.
The project included piloting of a generic low emission dual-fuel engine technology package
that is suitable for both new-built and retrofitted vessels.
Another objection of the BalticSO²Lution Action has been to connect 21 ports in Sweden and
Finland. The LNG shortsea tanker shipping onto Scandinavia can already benefit from
existing facilities and continued expansion of the Rotterdam-based Gate terminal as a
platform for the distribution of LNG to users in various sectors, shipping included. Those
shipping companies deploying LNG tankers can rely on a 10% discount on port dues in
Rotterdam.
Gate shareholders Gasunie and Vopak were able to call upon the European Investment Bank
for the funding of a specific project to facilitate LNG storage and supply in Northwest
European ports, such as Gothenburg. The latter is already a longer standing maritime
connection with Rotterdam. This and other Northwest ports are regarded as part of the EU
Motorways of the Seas shortsea scheme. As such they have been selected for co-financing
under the EU’s TEN-T program, amongst which the BalticSO²Lution project. Its Action
involves a budget of €7.2M, of €3.6M is co-funded by TEN-T.
As it is, it needs more than EU subsidies to stimulate the use of LNG. The Port of Rotterdam
Authority sets its hope of near future facilities, the Break Bulk Terminal being the third berth
of Gate Terminal with dedicated infrastructure for loading small LNG vessels. They can call
LNG terminals in other North Sea and Baltic ports for distribution of the fuel, whereas larger
LNG tankers are prohibited to do so because of their draught.
The investment of the new facility at Maasvlakte is estimated to be €75M to € 100M. In
return the port of Rotterdam can offer users the proper LNG bunkering facilities for inland
and smaller deepsea shipping by the end of this year. Next year ship to ship LNG bunkering
will be feasible, once the newbuild bunker tanker of Shell is deployed in the port.

2. Recently Tertank’s new LNG tanker Ternsund was the first to bunker LNG at the former ECT
Home terminal. However, it needed 13 trucks to supply the environmentally friendly fuel.
The new properly bunker facilitated break bulk terminal will end this time consuming
operation.
The Port of Rotterdam Authority was quick to present the first LNG tanker to bunker in
Rotterdam as showpiece of the port’s future capability to supply LNG fast and more efficient
than supplying the fuel by trucking. The authority’s Business Manager Liquid bulk, Maud
Eijgendaal, told Hazardous Cargo Bulletin, that the available facilities and future ones are an
effective marketing tool to support transition from bunker oil to LNG. She finds a willing ear
for transition at shipping companies, although dramatically low freight rates and equally low
oil prices are not particularly an incentive to invest in going green.
“Yet, we see more and more vessels in the newbuild fleet using LNG as an alternative fuel”,
she continued saying. “They are propelled by duel fuel; LNG and low sulphur gasoline. It
enables flexible propulsion. That is why Terntank has chosen for dual tanks in its newbuild
vessels, although the product tanker Ternsund is preferably powered by LNG.”
Ternsund’s he first call at Rotterdam during her maiden trip in August was celebrated to the
full, The shipowners invited business relations from Rotterdam, oil companies,
representatives of national transport authorities, the European Commission and European
Parliament, and other stakeholders from various sectors.
At the occasion MD Terntank Ship Management and shipowner Tryggve Möller told
European representatives jokingly “we invited you, so that you can check what one can do
with European money”, but added in earnest that Terntank has deliberately chosen for
environmentally friendly tankers ‘for the benefit of a green future for our children and
grandchildren’.
However, investments in what Terntank calls ‘the next generation of shipping, is also in
advanced technology that offers fuel reductions of 8 tonnes per 24 hours.
As yet, the shipping company deploys three environmentally friendly tankers. The fourth –
being the second LNG fuelled tanker – will be deployed later this year. The Ternsund and its
sister tanker’s main engine is a Wärtsilä 5RT-flex, 50DF m5.850 kW, 102 RPM 2-stroke, low
pressure, LNG dual-fuel engine. Less resistance with slender hull form and less bow flare
allow substantial fuel reductions and other benefits, such as less speed loss in heavy seas and
less bow impact and slamming.
AVIC Dingheng Shipbuilding vice general manager Wenchuan Wang is happy to confirm all
benefits the Ternsund offers: “Our shipyard aims at developing itself as the specialist in
tanker business, also in LNG. In general, the shipbuilding market knows Chinese shipyards
for their capability to build large bulk and container carriers. AVIC Dingheng focuses on
building LNG powered LNG and biodiesel. We do the job in close collaboration with
shipping companies, classification offices and other stakeholders. The market appreciates
that.”