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Nikos K. Doukas Publicatios, 12, Karababa str., Agios Dimitrios 173 43 - Athens - Greece 210 4286606 - -


September 2013 - Issue 1


bunker barges

The next shipping boom Posted by Lars Petter Blikom August 20, 2013 The next shipping boom: LNG bunker barges

At DNV, we have been talking about LNG bunkering for a long time. We’ve made projections, we’ve designed ships, we’ve made videos, we’ve chaired ISO committees, we’ve done risk assessments, and yet, I was stopped short when I faced this question:

So, how many of these LNG bunkering barges will be needed? The politically smooth answer, of course, is something like this:

Well, that is a question that depends on the uptake of LNG as a marine fuel in the various geographic regions, which again depends on ship operator’s willingness and ability to embrace new technology, and blablabla… Alternatively, let’s just do a math exercise: In our Shipping 2020 study, our optimistic scenario indicated a global LNG demand of 15 million tons from shipping. In other studies, we have assumed bunkering will be undertaken by bunkering barges of two size categories, 1600 and 4000 m3. Further assumptions indicate that one bunkering barge on average may do one bunkering operation every second day. This means that 60 off 1600 m3 barges and 24 off 4000 m3 barges could serve the global LNG fuelled fleet in 2020. And remember, 2020 is the year when growth of LNG in marine applications really takes off, so this fleet of 84 LNG bunkering barges is just the beginning of a whole new shipping market.

GasLog Ltd. announces delivery of GasLog Sydney GasLog Ltd. is pleased to announce the delivery of the fully owned LNG carrier GasLog Sydney, from Samsung Heavy Industries. Immediately on delivery she commenced a medium-term charter to Methane Services Ltd. (BG Group). The vessel is a 155,000 cubic meter tri-fuel Diesel Electric LNG carrier that sets new standards for efficient performance and environmental protection. The vessel is classified to the ABS ENVIRO+ notation, signifying the highest level of environmental protection and energy conservation. Furthermore the vessel is equipped with a new type of cargo compressors that will reduce the release of greenhouse gasses and offer enhanced cargo and heel management.

ABB wins orders of around $40 million from LNG vessel carriers ABB has secured total orders worth close to US$40 million from three leading gas transportation industry players in the first quarter of 2013 to supply power and electric propulsion equipment for LNG vessels to be built in South Korea. ABB will supply its fuel-efficient and environmental friendly propulsion plant to work in combination with a duel fuel diesel engine plant on board a 155,000 cu m capacity LNG carrier ordered from Hyundai Heavy Industries (HHI) by a South East Asian ship owner. The scope of supply by ABB will include generators, switchboards, transformers, drives and propulsion motors were all the components are manufactured by ABB factories. Together in this agreement is also an order for the same package plus additional switchboards to one 170,000 cu m LNG FSRU for a Norwegian/South East Asian ship owner. The ship will be built at SHI’s Geoje Island facility for delivery in 2015. As per June 1st 2013, a total of 38 DFDE LNG Carriers are under construction/commissioning with ABB power & propulsion system. Heikki Soljama, Head of ABB Marine and Cranes business unit says: “Repeat orders for LNG carrier power and propulsion systems via HHI and SHI consolidates our strong relationship with two of the leading yards in the field.

Statoil: Fast-track development of Delta 2 Together with its partners, Statoil has submitted its plan for the development and operation (PDO) of the Delta 2 field in the North Sea. This development forms part of Statoil’s fast-track portfolio. “Delta 2 marks an important new step for Statoil and our fast-track development strategy. The fast-track projects will considerably boost Statoil’s equity production and will produce 100,000 barrels of oil equivalent daily (boe/d) by the end of 2014,” says IvarAasheim, Senior vice president for field development. The goal of Statoil’s fast-track developments is to recover resources by utilising the existing infrastructure while this is still feasible. These are known as time-critical discoveries. This concept is suitable for making the development of limited discoveries profitable.

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DNV Approval on LNG storage solution

Together with Wilhelmsen Technical Solutions (WTS), NLI Solutions have received Approval in Principal (AiP) from DNV on their LNG fuel tank design. The two companies have since 2009 worked on the development of a LNG fuel tank design. The tank is designed as an IMO-B tank. In short this is a prismatic, atmospheric and self-supporting LNG steel tank with state of the art cryogenic insulation. Parts of the tank system are patent pending. HOUSTON

feet of water. Noble Energy, announced today a natural gas discovery at the Karish prospect offshore Israel. The discovery well was drilled to a total depth of 15,783 feet and encountered 184 feet of net natural gas pay in high-quality lower Miocene sands.


BP Plans $1B in New Investment, Adding Two Drilling Rigs and 200 Jobs in Alaska

The first Rolls-Royce Environship - the Eidsvaag Pioner

First Rolls-Royce low emission Environship delivered 1 | UNITED KINGDOM Rolls-Royce Plc has delivered the first of a revolutionary new design of cargo ship which will reduce CO2 emissions by up to 40 per cent, thanks to a combination of cutting edge marine technology, including a wave-piercing bow and an engine powered by liquefied natural gas (LNG). The first Rolls-Royce Environship, of NVC 401 LNG design, the Eidsvaag Pioner, has been delivered to Norwegian company Eidsvaag AS this week, and will soon enter service on a year-round schedule delivering feed to numerous fish farms around the Norwegian coast. The Environship, which can be adapted for different ship types, incorporates a range of Rolls-Royce technologies to deliver efficiency savings for ship owners. When compared to similar sized diesel powered ships, the CO2 reduction can be up to 40 per cent.

2 | ANCHORAGE BP announced it is planning to add $1 billion in new investment and two drilling rigs to its Alaska North Slope fields over the next five years due to changes in the state’s oil tax policy signed into law this month by Gov. Sean Parnell. These plans call for an increase in drilling and wellwork activity, the upgrading of existing facilities and the addition of up to 200 new jobs in the state, giving a boost to both the company’s operations and the state’s economy. In addition, BP has successfully secured support from the other working interest owners at Prudhoe Bay to begin evaluating an additional $3 billion worth of new development projects. These projects, located in the west end of the Greater Prudhoe Bay Area, could continue for nearly 10 years, further increasing the state’s oil production and providing additional jobs. BP Exploration (Alaska) Inc. will issue a request for proposals (RFPs) beginning this summer for the two additional rigs in Prudhoe Bay. The first drilling rig is expected to be in place by 2015 and the second in 2016. This will increase BP’s rig fleet in Alaska to nine. Meanwhile, BP expects to increase well work as soon as the fourth quarter of 2013, a move that should improve the performance of existing wells at the Prudhoe Bay and Milne Point fields.

Świnoujście: Work Progress at the LNG Terminal 3 | POLAND The liquefied natural gas terminal in Świnoujście has recorded a 13.6 percent increase in progress of works over the past three months. This means that the construction is almost 60 percent complete. This upward trend also applies to the number of sub-contractors engaged in construction works at the terminal. At present, as many as 1000 persons are working on the site, which means that the workforce has been doubled in comparison with the same period last year.


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MOL Reaches LNG Transport Agreement

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President: Koichi Muto) announced the conclusion of a contract for a long-term liquefied natural gas (LNG) transport with Osaka Gas Co., Ltd. (President: Hiroshi Ozaki) and Kyushu Electric Power Co., Ltd.(President: Michiaki Uriu). As MOL has concluded the contract with Osaka Gas and Kyushu Electric Power, it will soon sign a contract with Mitsubishi Heavy Industries Co., Ltd. (MHI) for construction of a 155,000cm3 LNG carrier.

Yemen LNG confirms unsuccessful attack on pipeline

4 | YEMEN Yemen LNG confirms that two attacks took place today targeting the 38-inch gas pipeline that links the Marib Block 18 gas field production to the Balhaf LNG facilities located on the Gulf of Aden. The two attacks occurred at 1:50 pm and 2:10 pm today, Sunday, 2 June 2013, about 55km and 88km, respectively, north of Balhaf. There were no Yemen LNG casualties and the attackers were successfully repelled by the Yemen military forces at both locations.

Atlantic Offshore - New contract Lloyd’s commenced 5 | NORWAY BG UK has awarded Register:Two new Rule-sets Blue Power a five year contract. The vessel has approved already commenced the contract. It will mainly be supply out of Aberdeen. Atlantic Offshore AS’ main office is located at the Coast Center Base, Sotra, outside Bergen, Norway, with branch office in Aberdeen, Scotland. Both offices with full management set up.The Group currently operates 24 vessels off Ireland, Mediterranean, Southern Atlantic and in the North Sea. Atlantic Offshore continuously strives to improve the environmental aspect in operating our vessels.Atlantic Offshore is ISO 9001 and ISO 14001 certified.

Photography Kristoffer Strandebø

Blue Power

6 | SINGAPORE At the recent Offshore Technical Committee, two new Rule-sets were approved. • The MOU Rules have been completely overhauled and new drilling notations added, including DRILL, DROPS and ISIS; • And the FOIFL Rules were improved with key changes relating to new requirements and guidance for FLNG assets; a new Part 11 added for “Product, Storage and Offloading of Liquefied Gases in Bulk” and “Guidelines for the calculation of probabilistic explosion loads”.

Chinese Offshore Industry Spurred on by General Secretary’s Comments

7 | CHINA Mr. Xi Jinping, who was appointed general secretary at China¡¯s 12th National People’s Congress, is said to have an interest in the offshore industry in Nantong, China. The General Manager of COSCO (Nantong) Shipyard, Mr. Ni Tao, was among the Jiangsu delegation which attended the 12th National People’s Congress on March 8. Whilst there, he explained to Mr. Xi Jinping how much the global offshore industry has developed, its outlook, and China¡¯s current capacity to build offshore facilities. He also outlined the main problems to be overcome and where there was room for improvement.

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yundai Heavy Industries (HHI), the world’s biggest shipbuilder, today announced that it has developed a high performance Hyundai Membrane LNG Cargo Containment System. The shipbuilding giant’s new membrane type containment system for liquefied natural gas received Design Approval from classification societies including ABS and DNV. Hyundai Heavy Industries (HHI), the world’s biggest shipbuilder, today announced that it has developed a high performance Hyundai Membrane LNG Cargo Containment System. The shipbuilding giant’s new membrane type containment system for liquefied natural gas received Design Approval from classification societies including ABS and DNV.

Goldboro LNG Nova Scotia, Canada LNG Export Agreement 3 | CANADA Pieridae Energy Ltd. today announced that it has entered into a long-term sales agreement with E.ON Global Commodities SE, a subsidiary of E.ON SE for the purchase of liquefied natural gas from the Goldboro LNG project in Nova Scotia, Canada.

LNG Blue Corridors project has been launched in Brussels 1 | NGVA EUROPE

From May 27 to 28, Brussels hosted the first consortium meeting marking the launch of the LNG Blue Corridors, a European project financed by the Seventh Framework Programme (FP7). Organised by NGVA Europe, the kick-off event of the four-year project was attended by more than 70 participants present at the public session on 27th May, which was held at the European Comission Centre A. Broschette. In his Keynote speech opening up the meeting Olivier Onidi, Director of DG Move, emphasised the particular importance the project will have for the European LNG infrastructure in the years to come.

NGVA Europe is proud to finally develop the LNG Blue Corridor concept for Europe after several years of frutful discussions and cooperation with the European Commission, supported by an impressive industry commmittment of 27 NGVA Europe members in total as project partners. The LNG Blue Corridors project’s aim is to establish LNG as a real alternative for medium & long distance transport first as a complementary fuel and later as an adequate substitute for diesel. To accomplish its objective it has defined a roadmap of LNG refuelling points along four corridors covering the Atlantic area, the Mediterranean region and connecting Europe’s South with the North and its West and East accordingly. In order to implement a sustainable transport network for Europe, the project has set the goal to build approximately 14 new LNG or L-CNG stations, both permanent and mobile, on critical locations along the Blue Corridors whilst building up a fleet of approximately 100 Heavy Duty Vehicles powered by LNG

Exciting FSRU contract at DSME 2 | UK Bestobell Valves recently supplied the Globe and Check valves to South Korean shipbuilding company DSME as part of a $500k deal. DSME is building the FSRU in South Korea on behalf of US-firm Excelerate. The FSRU is destined for the VT3 Guananbara Bay Project operated by Brazilian oil major, Petrobras, and will deliver 22.5 million cbm of gas per year. It will have storage capacity of 173,400 cbm and will be on charter to Petrobras for 15 years. The vessel is the ninth in a series of FSRUs that DSME has built for Excelerate.

According to a company statement Pieridae plans to deliver approximately 5 million tons per annum (MTPA) of LNG to E.ON for 20 years into a number of locations in Western Europe. The Goldboro LNG terminal will eventually have the ability to export up to 10 MTPA of natural gas, year round, with on-site storage capacity of 690,000 cubic meters of LNG.

Hyndai Heavy wins USD 750 Million Drilling Rig Order Offshore Hyundai Heavy Industries (HHI), the world’s biggest shipbuilder, today announced the it won a USD 750 million order to build a semisubmersible drilling rig for Diamond Offshore. The drilling rig, measuring 123 m in length and 96 m in width, can operate in waters 3,000 m deep with a drilling range of 12.2 km from the sea’s surface. The rig is scheduled to be delivered by November 2015.


lngShip 5 Offshore oil and gas engineering specialist NLI Solutions (NLI) has developed a concept for a LNG Bunker Barge based on the NLI LNG tank design. The concept has been further developed in a design study together with the Marine division of Rolls-Royce and Wilhelmsen Technical Solutions (WTS).

NLI, Rolls Royce Marine and Wilhelmsen develop LNG bunker barge

Technip awarded contract for LNG project in Canada

5 | CANADA Technip, leader of a consortium with Samsung Engineering Co Ltd and China Huanqiu Contracting & Engineering Corporation, was awarded by Pacific NorthWest LNG Limited Partnership a contract for the front end engineering design and the early detailed engineering services of a grassroot liquefied natural gas (LNG) project. This project is proposed to be located on Lelu Island, British Columbia, Canada.

ExxonMobil to Develop Julia Oil Field in the Gulf of Mexico 7 | TEXAS


Wärtsilä launches a new more powerful version of its Wärtsilä 34DF engine 6 | FINLAND Wärtsilä, the marine industry’s leading solutions and services provider, has further developed its dual-fuel technology and introduced a more powerful version of its popular Wärtsilä 34DF engine. The Wärtsilä 34DF engine has proven to be a highly efficient and reliable solution for a wide range of vessel applications. The latest version is expected to expand that range even further. Lower fuel consumption of this engine will further improve its environmental performance. The new and upgraded version of the Wärtsilä 34DF engine increases the efficiency in both liquid and gas operating modes and offers a power increase up to 500kw per cylinder.

Autronica Division Petrochemical, Oil & Gas - will participate in the ONS Norway Conference and Exhibition in Stavanger, Norway. The conference is scheduled to be held 19-21 August 2013. We would be delighted if you could find time to visit us at stand C 3228 at the ONS Norway Exhibition.

Capital cost for the project, which is expected to begin oil production in 2016, is estimated to be more than $4 billion. The field was discovered in 2007 and is estimated to have nearly six billion barrels of resource in place. The initial development phase is being designed for daily production of 34,000 barrels of oil and includes six wells with subsea tie-backs to the Jack & St. Malo production facility operated by Chevron U.S.A. Inc. Julia project front end engineering design has been completed and the engineering, procurement and construction contracts have been placed. The Julia field comprises five leases in the

ultra-deepwater Walker Ridge area of the Gulf of Mexico, 265 miles southwest of New Orleans. The blocks are WR-584, WR-627, WR-628, WR-540 and WR-583. ExxonMobil, the operator, and Statoil Gulf of Mexico LLC each hold a 50 percent interest in the Julia unit. Over the past decade, ExxonMobil has drilled 36 deepwater wells in the Gulf of Mexico in water ranging from 4,000 feet to 8,700 feet.

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Optium quam, sant laut accupta quatem imilla sitate oditia vel maxim estisimagnis vendes dicilisci te quo occaera sant eatinve lendam ape pori conse Photography John Doe - Photo Dune

World’s FIrst LNG-Powered Container ships To Serve Puerto Rico For TOTE, Inc. TOTE, Inc. announced today it has committed to the construction of two new stateof-the-art container ships for the Puerto Rico trade, with options for three more vessels for additional domestic service. The agreement with General Dynamics NASSCO represents a major technological milestone in international shipping. The vessels will be the most environmentally friendly containerships in the world with CO2 emissions-per-container that are 71% less than the vessels now in the Puerto Rican trade. Particulate Matter will be reduced by 99%. Sulfur oxides will be reduced by 98%. Nitrogen oxides will be reduced by 91%. The 3100 TEU vessels are expected to be the largest ships of any kind in the world powered primarily by liquefied natural gas (LNG). Both ships

will be powered by dual-fuel LNG engines that greatly surpass the requirements of the U.S. Environmental Protection Agency’s clean air regulations. General Dynamics NASSCO in San Diego, California will build the vessels, with construction expected to sustain 600 American shipyard jobs in Southern California. The first two vessels will be delivered and enter service between Jacksonville, FL and San Juan, PR in 2015 and 2016. These new TOTE, Inc. ships will be the most efficient in the trade. The ship design accommodates five times more 53-foot containers than current ships in Puerto Rico and will allow for the transport of everything from cars to corn syrup. The ships will include expanded volumes for

refrigeration equipment, critical to ensure that pharmaceuticals, produce and other foodstuffs vital to the residents of Puerto Rico are delivered in the best possible condition. The maritime shipping trade to Puerto Rico is an essential part of sustained economic development for the Island and these vessels will provide the most modern, reliable service available. The total capital committed to the project is over $350 million. Anthony Chiarello, President and CEO of TOTE, Inc. said, “This investment demonstrates our commitment to the people of Puerto Rico and our environment. These vessels mark a new age of shipping using the best technology in the world.”


lngShip 7 SHI Wins Order for Two LNG Carriers Worth KRW 462.3 Billion

Samsung Heavy Industries announced on the 15th that it had won the order for two 180,000㎥-class LNG carriers from the SK Marubeni Joint Venture, the consortium between SK Shipping and Marubeni. The contract is worth KRW 462.3 billion (approximately USD 0.41 billion). The newly ordered LNG carriers will be delivered in the second half of 2016 and the second half of 2017, respectively, and will be used for LNG transportation by Total, a France-based firm. Notably, one unit will be used to transport LNG produced through the Ichthys Project, Australia, to Korea. que pra eatiaepro cus de ipicae idebis cumquas



Those attending this year’s annual Offshore Technology Conference (OTC) listened intently as Khaled A. Al Buraik, Saudi Aramco’s vice president of Petroleum Engineering and Development, detailed the company’s transformation initiatives with a focus on upstream technology development. Members of the offshore energy sector were eager to learn about the company’s upstream research and development (R&D) activities for the future. As for computational modeling technology, Saudi Aramco’s in-house reservoir simulator tool, GigaPowers, continues to evolve.

International Dredging and Offshore Contractor Van Oord has chosen Sealink customised VSAT from Marlink to provide data communication services for three offshore rock placement vessels. The five year contract covers Marlink’s provision of end-to-end services and includes facility to provide ad-hoc coverage should the vessels be operating in extreme remote areas. The Sealink Service Agreement, which provides 24/7 access to expert front-line support is also a key part of Marlink’s provision under the contract.

Upstream focus for offshore conference


Xodus launches new subsea capability

The new services, which were announced at the Australia Oil and Gas Exhibition & Conference (AOG), underpin Xodus’ significant growth in the region where it has achieved turnover of AUD 1.5 million since April 2012. During the same period, the Perth-based team has expanded considerably from two people to 27 with aims to have up to 60 staff by the end of 2013.

Customized VSAT for Offshore Vessels


Galoc Phase II Commences Drilling

Otto is pleased to advise that at 13:00 hours on 4 June 2013, the Ocean Patriot semisubmersible drilling rig commenced drilling the Galoc -5H and 6H development wells. Drilling is expected to take approximately 115 days including the flowing of the wells for clean-up. The forward plan is to drill the36“ (914mm) hole to 392 metres and install the 30” conductor prior to drilling the 171/2“(444 mm) hole to 950 metres.

Otto will provide weekly updates on drilling progress commencing on Wednesday 12 June 2013.

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TAQA completes acquisition of BP assets 1 | ABU DHABI TAQA, the global energy company based in Abu Dhabi, has today completed the acquisition of UK North Sea oil and gas assets from BP. TAQA takes over as operator of the Harding field and production platform in the Central North Sea, complementing the company’s existing assets in the Northern North Sea. The acquisition is expected to add 20,000 barrels of oil equivalent per day (boed) of production. Carl Sheldon, Chief Executive Officer at TAQA, said: “We are delighted to announce the completion of this acquisition which extends the average life of our UK reserves and opens up a bright future for our North Sea business. This investment is a great strategic fit for TAQA.” The assets were acquired under the agreement signed in November 2012 with an economic effective date of 1 January 2012, for USD 1,058 million, including an allocation for tax allowances. A deposit of USD 632 million was paid at signature of the agreement. The remaining consideration has been adjusted for cash flow since the effective date. As a result of the acquisition, TAQA now has interests in the Harding, Morrone and Maclure fields. The transaction has also increased TAQA’s interests in the Brae area, the SAGE gas pipeline and Forties-Brae and Forties-Braemar oil pipelines. The acquisition of the Devenick field interests, forming part of the transaction, is expected to complete at a later date.

Kinder Morgan Announces Expansion of New BOSTCO Oil Terminal

Cormorant Alpha – North Sea Platform, UK


INPEX CORPORATION (INPEX) is pleased to announce shipbuilding and shipping contracts for two new vessels which will offtake and deliver LNG from the Ichthys LNG Project offshore Western Australia to Japan and Taiwan.

“Technology – from Innovation to Application”2 | DNV SEMINAR DNV had

invited customers and innovation experts to meet, share and debate their experiences, and exchange views concerning technology innovation processes

and time to application within the oil & gas industry. The intention is to turn this conference into a yearly high-profile event, attracting members of this industry worldwide. The first of this new annual event drew participants and lecturers from the oil and gas industry, as well as from research and academic institutions. Eight leading companies and some 100 individuals attended the conference, and many expressed the view that it should be extended to two or three days in the future. They obviously wanted more time to interact, share experiences and establish new relations and contacts. Panel participants (left to right): Kjartan Pedersen, Kjetil Skaugset, Torger Reve, Moya Crawford, Tore Irgens Kuhnle, Martin Sigmundstad, Pascal Montoulives and Svein Brendsund (moderator).

3 | HOUSTON Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced a 900,000-barrel expansion at the 185-acre Battleground Oil Specialty Terminal Company, LLC (BOSTCO) currently under construction on the Houston Ship Channel. The approximately $54 million expansion is supported by a longterm leased storage and handling services contract with Morgan Stanley Capital Group Inc. and includes six, 150,000-barrel, ultra low sulphur diesel tanks, additional pipeline and deepwater vessel dock access, and highspeed loading at a rate of 30,000 barrels per hour. Work on the 900,000-barrel expansion is scheduled to start in the second quarter of 2013, with commercial operations expected to begin in the fourth quarter of 2014.


lngShip11 VEKA Group & DEEN SHIPPING join LNG experience Two leading players in inland shipping have joined forces and combined their experiences to develop the small scale LNG market under the name VEKA DEEN LNG. This collaboration is a leap forward in the realization of an inland LNG transport corridor and facilitates LNG bunkering. During the second day of the ‘Construction & Shipping Industry’ trade fair in Gorinchem two major players in inland shipping have signed an collaboration agreement and revealed the first product of their collaboration, an innovative ship design for the first inland LNG carrier. This new tanker has a length of 90 meters and will be able to transport 2.250 cubic meters of LNG.

With their joint forces and experience in shipbuilding, shipping and LNG transport, both companies foresee a very promising collaboration, and look forward to the construction of their first inland LNG carrier. VEKA was the first Holland based shipyard to deliver a seagoing LNG carrier with LNG propulsion (Pioneer Knutsen). Deen Shipping has developed, and operates the world’s first LNG propelled inland tanker (Argonon).

Wood Group Kenny wins FLNG subsea project5 | SUEZ Wood Group Kenny

(WGK) has been awarded a multi million dollar engineering contract for a major new project in Australia. GDF SUEZ Bonaparte Pty Ltd (GDF SUEZ), a subsidiary of French energy giant GDF SUEZ S.A., operator of Bonaparte LNG project has awarded WGK a contract for a (preFEED) subsea concept definition study for the Bonaparte LNG project.

FKAB T24 series - LNG fuelled 21 000m3 Chemical & Product Tankers 5 | SUEZ Finally the T24 series is released. 21000m3 Chem & Product tankers with the focus on very low fuel consumption and trade in harsh weather and ECA areas. Safe tankers that will deliver, even in harsh ice conditions. Fuel flexibility: LNG, HFO, MGO - the slow speed two-stroke Engine can be optimised to suit each and every trade. Download the Product sheet or give FKAB a call to find out more about the next generation Chemical & Product tankers.

Teijin Launches Denitration Device to Reduce NOx Emissions 6 | TOKYO Teijin Engineering Limited, a Teijin Group company, announced today its development and launch of a selective catalytic reduction (SCR) denitration device for midsized ship engines to ensure compliance with the Tier III NOx (nitrogen oxides) Emissions Regulation that is slated to be enforced by the IMO) beginning in 2016.

Bergen Tankers selects Rolls-Royce engines for LNG conversion project7 | UK Rolls-Royce Plc has won a contract to

convert the merchant ship Bergen Viking to run on engines powered by natural gas, replacing the current diesel engines. The Norwegian ship owner Bergen Tankers AS has chosen gas engines and accompanying systems from Rolls-Royce for this upgrade, to provide a more environmental friendly and fuel efficient ship. Bergen Viking is a 95 meter long chemical and product tanker operating along the long Norwegian coastline. Delivered in 2007, the vessel is part of a total fleet of six vessels owned by Bergen Tankers AS. The conversion to LNG is planned for the summer of 2014.

The ship Bergen Viking to run on Rolls-Royce natural gas engines

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The Gazprom headquarters hosted the Press Conference “Gas Export and Enhancing Reliability of Gas Supply to Europe” organized within the series of meetings among Gazprom’s top executives and media representatives on the threshold of the Company’s annual General Shareholders Meeting. Taking part in the Press Conference were Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee, Director General of Gazprom Export and Pavel Oderov, Head of the International Business Department of Gazprom.

Gazprom making strong contribution to meeting growing demand for gas in Europe

1 | RUSSIA According to consensus forecasts, by 2025 the gap between domestic production and consumption in Europe will amount to 145 billion cubic meters, and by 2030 – surpass 200 billion cubic meters. In this respect, Gazprom is obviously set to play an even bigger role as the lead supplier of natural gas to Europe and the holder of immense resources with proven records of reliable gas supplies for over 40 years. In order to enhance the energy security of Europe and diversify the natural gas export routes, Gazprom is implementing the South Stream project. The commissioning of the gas pipeline as well as the startup of commercial gas supplies are scheduled for late 2015. With a view to boost direct supplies of Russian gas to European consumers, the possibility of constructing the Yamal – Europe-2 gas pipeline and extending the Nord Stream project is being worked on. WORLD


Bellona makes a dent in CO2 emissions from ships

2 | LONDON Fuel costs constitute roughly 60-70 percent of operating cost for a ship. Properly maintained propeller and hull surfaces alone hold the potential of saving the world fleet up to 30 billion USD and reduce the emissions of greenhouse gases by 0.3 percent of total man made emissions, begging Soeyland to ask the question: Would you pay more upfront if you could get savings and reduce your carbon footprint over time? The Bellona Foundation, a member of the Clean Shipping Coalition, in cooperation with the Norwegian paint manufacturer Jotun, convened a second workshop in London on the 9-10th May. The meeting took place in the offices of Intertanko.

InterOil and Pacific LNG Group Enter Into Exclusive Negotiations With ExxonMobil on Development of The Elk and Antelope Resource. InterOil Corporation (NYSE: IOC) (POMSoX: IOC) (“InterOil” or the “Company”) and its joint venture partner, Pacific LNG Group, have entered into exclusive negotiations with ExxonMobil Papua New Guinea Ltd., a subsidiary of ExxonMobil (NYSE: XOM), on the development of Petroleum Retention License 15 (PRL 15), which comprises the Elk and Antelope fields in the Gulf Province of Papua New Guinea. The transaction has been discussed with the Government of PNG and any future agreement will be subject to their final approval.

IMO Marine Environment Protection Committee3 | EMISSIONS

The Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) met for its 65th session from 13 to 17 May 2013, at IMO Headquarters in London. The Committee made significant progress in its work on further developing energy-efficiency regulations; adopted an MEPC Resolution on Promotion of Technical Co-operation and Transfer of Technology relating to the Improvement of Energy Efficiency of Ships; and gave the go-ahead to carry out an update to the greenhouse gas (GHG) emissions’ estimate for international shipping. It also agreed a draft Assembly resolution to address the implementation of the Ballast Water Management convention and approved a number of ballast water treatment systems. The MEPC approved the terms of reference and agreed to initiate a study for an updated greenhouse gas (GHG) emissions’ estimate for international shipping, following discussion in an expert workshop, which met earlier this year, on the methodology and assumptions to be used. The new study will focus on updating key figures in the current (second) IMO GHG Study (2009), which estimated that international shipping emitted 870 million tonnes, or about 2.7%, of the global manmade emissions of carbon dioxide (CO2) in 2007.


lngShip13 Rolls-Royce to design gas-powered propulsion systems for Baleària high-speed ferries

Rolls-Royce to partner Balearia in LNG conversion project for high-speed Ferries 4 | UK Rolls-Royce Plc has signed a memorandum of understanding with Spanish shipping company Baleària, to design gas-powered propulsion systems for three of the company’s high-speed ferries, which currently run on diesel. Baleària, which operates ferry services between the Spanish mainland and the Balearic Islands, in the Strait of Gibraltar and The Bahamas Islands, is proposing the conversion of three ferries from diesel to liquefied natural gas (LNG), a much cheaper and cleaner fuel.

MS Stavangerfjord has been honored by IMO5 | IMO AWARDS IMO – the

International Maritime Organization – is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine pollution by ships. The Energy Efficiency Award (previously Clean Ship Award) went to Fjord Lines’ Stavangerfjord - designed and constructed by Bergen Group Fosen. The winner of the award was published at the opening day of NorShipping in Oslo on June 4th 2013. For many years, Nor-Shipping has served as a strong platform for the promotion of environmentally responsible performance within the industry.


hile on official visit to France, His Excellency John Dramane Mahama, President of the Republic of Ghana, was welcomed earlier today by Thierry Pilenko, Chairman and Chief Executive of Technip, at the Group’s Headquarters in Paris. During this meeting, the Ghanaian delegation and Technip’s management discussed the booming development of the oil and gas market in Ghana, as well as Technip’s activities and projects.

Castrol Marine challenges SDA methodology7 | egypt Factors influenc-

ing scavenge drain oil characteristics include fuel sulphur level, cylinder oil BN level, system oil contamination and operating profile. Accuracy is critical in SDA interpretation, not least because it supports feed-rate assumptions that are critical to cylinder oil performance, Castrol says. “It is not possible to analyse results accurately without comprehensive knowledge of the fuel oil, the new and used system oil, feed rates and operational data collected from the engine at the time of sampling,” says Paul Harrold, Castrol Marine Technology Manager.

“Our view is that there are potential shortcomings in ship-based magnetic analyser type SDA approaches because they cannot identify corrosive wear.” Cylinder wear could be assumed to be under control due to a low response on ferro-magnetic analysers where, in fact, corrosion is taking place, Mr Harrold says. “This demands attention as evidence grows supporting our position that corrosive wear risk is going unacknowledged when cylinder oils of insufficient BN are used in slow steaming.”

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BP showcases latest offshore technology BP has been playing a major role at the Offshore Technology Conference (OTC) 2013 in Houston, showcasing its latest innovations for exploration, drilling and risk management Founded in 1969, the OTC is the world’s leading conference on offshore technology, attracting more than 80,000 delegates and more than 2,500 companies from more than 110 countries. Lamar McKay, chief executive Upstream, kicked off BP’s participation with a keynote speech about BP’s Upstream strategy, with a focus on the deepwater. Felipe Bayon, senior vice president BP America, said: “Our objectives for OTC 2013 are to continue to share with our industry partners and other key stakeholders about BP’s innovative technology agenda and how it is creating value for the company.” The exhibitions spotlight BP’s Upstream portfolio, including the Gulf of Mexico, and BP’s technology vision in areas such as the Field of the Future, Advanced Seismic Imaging, and Project 20K™. Detailed imaging of the subsurface, sometimes many kilometres below sea level, brings with it major technological challenges. For instance, in the US Gulf of Mexico, 80% of future oil and gas reserves may lie beneath vast salt canopies, some up to 7KM high that’s taller than Mount Kilimanjaro. These salt formations interfere with seismic waves and make it difficult to ‘see’ reservoirs clearly. The company has deployed the latest technology to generate an accurate picture of the reservoirs that lie beneath these salt canopies. BP uses its seismic imaging expertise to access more acreage, reduce exploration and development risk, lower costs, and improve recovery from producing fields. One of BP’s major offshore technology programmes is Project 20KTM, a multi-year initiative to develop next-

generation systems and tools for deepwater exploration and production that can operate in high-pressure and high-temperature reservoirs up to 20,000 pounds per square inch and 350 degrees Fahrenheit, beyond the reach of today’s technology. The project plans to develop technologies over the next decade in four key areas: well design and completions; drilling rigs, riser and blowout prevention equipment; subsea production systems; and well intervention and containment. BP estimates it could potentially access an additional 10-20 billion barrels of resources across its global portfolio over the next two decades with the application of Project 20KTM technology. These resources are inaccessible with current equipment, which has a technical limit of 15,000 psi pressure and temperatures of 250 degrees Fahrenheit. In the Gulf of Mexico, BP expects Project 20KTM technology will play an important role in developing major deepwater discoveries it has made in recent years, including Kaskida and Tiber. Those discoveries are found in an emerging play known as the Paleogene, where BP holds a strong lease position. BP also sees potential applications for the technology in Egypt, Azerbaijan and other deepwater basins around the world. BP has awarded several contracts for the project. KBR will develop program execution and management plans for Project 20K™. FMC Technologies will participate in a technology development agreement and Maersk Drilling will help develop conceptual engineering designs for a new breed of advanced technology offshore drilling rigs.




Shipping contributes to ocean acidification, especially during summer months.

University of Delaware: Shipping pollution Shipping pollution along major trade lanes can rival carbon emissions in contributing to the increased acidity of the ocean, according to a new study by an international team, including researchers from the University of Gothenburg, Chalmers University of Technology, the University of Delaware and the Institute for Advanced Sustainability Studies.

In regional ocean “hot spots,” especially near the coastlines, this seasonal acidification is of the same order as the annual acidification due to carbon dioxide. The globally averaged acidification, in line with previous studies, is much smaller but ignores the important regional acidification caused by ships without emissions control.

The research is the first global analysis that shows that acidification from shipping can during the summer months equal that from carbon dioxide. Rising levels of carbon dioxide in the atmosphere cause a steady acidification of the ocean as carbon dioxide dissolves into the water and produces the weak acid carbonic acid. Other gases can also cause acidification, for example sulfur and nitrogen oxides, which dissolve to give the strong acids sulfuric acid and nitric acid respectively.

“Controls on the sulfur content of marine fuel oil are already in place in North Atlantic ‘hot spot’ areas on the North American and European coasts,” Corbett said. “In 2015 the maximum sulfur content in some of these areas will be reduced from 1 percent to 0.1 percent, while the global maximum will drop more than 80 percent from current average 2.7 percent to 0.5 percent.”

“These oxides are present in the exhaust gases from ships’ engines,” said David R. Turner of the University of Gothenburg in Sweden. “Sulfur oxides come from the sulfur present in marine fuel oil, while nitrogen oxides are formed from atmospheric nitrogen during combustion. Emission of these oxides causes atmospheric pollution, followed by marine pollution (acidification) on deposition.” Ocean acidification has been shown to harm the health of coral, squid, mussels and other sea life. “Global shipping has emitted acidifying compounds for decades without emissions controls,” added James J. Corbett, professor of marine policy in the University of Delaware’s College of Earth, Ocean, and Environment. “Only recently have regulatory standards set limits on ship emissions that will take effect between now and 2025.” These oxides contribute to long-range pollutant transport, but significant amounts can be deposited within a few hundred nautical miles of the shipping lanes. This study has assessed the consequences of releases from shipping on a monthly basis during one year. The results show that the greatest acidification from shipping occurs in the northern hemisphere in coastal areas during the summer. In addition, acidification occurs in open-ocean regions surrounding heavily trafficked shipping lanes. Coastal areas are most affected, and regulatory action may reduce impacts

Ship acidifying emissions also impact North American coastal oceans. Previous analyses (see Figure 3.3-17) showed that annual total sulfur deposition attributable to international shipping ranges from 10 percent to more than 25 percent of total sulfur deposition along the entire Atlantic, Gulf of Mexico and Pacific coastal areas. These studies led the International Maritime Organization to designate Emissions Control Areas around much of North America, following similar control areas in Northern Europe. “This policy-driven transition to cleaner ship fuels and lower emissions is the most dramatic global reduction in acidifying deposition to the sea since at least the 1950s,” Corbett said. “This global analysis expands our understanding that controlling ship emissions can be an important step to reduce acidification of ocean and coastal areas not yet protected by control areas,” Turner said. “Improving the quality of fuels will help, and technologies that scrub the stack gases may need to neutralize the acidic discharges from treatment processes to protect ocean and coastal ecosystems.” “Emerging policies and practices to improve fuel quality and reduce ship acidifying emissions by 2020 or 2025 provide scientists with a rare opportunity to observe positive change as ships become less polluting,” Corbett said. The research was published in Geophysical Research Letters and can be viewed online.

Lngship september 2013  

Monthly review for the Lng, Oil & Gas, in Shipping