Russian update
Russian bunker industry looks at Norwegian LNG progress Olga Bogacheva reports on her recent tour of Norway’s marine LNG sector
T
he marine fuel market is expected to change in the near future as new regulations come into effect in emission control areas (ECAs). Some experts think that development of liquefied natural gas (LNG) as the most efficient means of environmental protection will lead to a rapid increase in the number of vessels using LNG as fuel. As result, Russian bunkering companies are becoming interested in the practical aspects of LNG handling. To meet this demand, the Russian Association of Marine and River Bunker Suppliers in cooperation with the commercial section of the Royal Norwegian Embassy in St Petersburg organised an educational tour entitled ‘Use of LNG as Marine Fuel. The Norwegian Experience’. Experience of LNG use in the shipping industry is limited, but Norway is widely seen as leading this area. Nikolay Shavrov, representing Innovation Norway, St Petersburg, said: “Norway is the world leader in usage of LNG as marine fuel, with about 50 LNG-fuelled ships in operation and more than 40 confirmed LNG-fuelled newbuilds. Infrastructure for LNG-fuelled ships is quickly developing and today Norway has more than 30 receiving LNG terminals ranging from 100m3 to 3,500m3. Total production from local LNG plants accounts for 450,000 tonnes annually.
World Bunkering Summer 2014
Norway has demonstrated that smallscale LNG production and distribution is competitive as fuel for ships. Although there are well-known challenges connected with LNG usage, like the lack of infrastructure and larger equipment costs, LNG is considered to be the main alternative to traditional fuel oil.” The Russian group included top managers and members of the Association, as well as managers of other businesses associated with the shipping industry and stevedoring companies: Gazprom Neft Marine Bunker, Petersburg Oil Terminal, Transneft-Service, Gazprom Neft Shipping, Lukoil-Bunker, Northern Shipping Company, Eurochim, the Engineering Ship-Building Centre, the Krylovsky Scientific Centre, and others from St Petersburg, Moscow, Archangelsk and Novorossiysk. The group visited several working facilities, including LNG terminals, shipyards and design and educational centres in Bergen and Olesunde, observed a bunkering operation at Halhjem and enjoyed a tour on a LNG-powered ferry. There were meetings with representatives of Norwegian companies pioneering the use of LNG as a marine fuel, including Gasnor, Rolls-Royce Marine, Fiskerstrand Shipyard, Multi Maritime, the Norwegian Centre of Expertise – Maritime, DNV GL and Vard. The general opinion of the participants was that the information gained
helped to clarify their understanding of potential world shipping developments and will be useful for working out of their own strategies. Experts tend to be careful when forecasting LNG availability in Russian ports. Although it is possible to calculate the number of potential customers quite accurately, the construction of the necessary infrastructure is still uncertain. In April, Gazprom announced its intention to take a 15% share of the world LNG market by 2030. This implies large-scale supplies to Asian-Pacific, Southern American and Far Eastern regions. The Baltic LNG project is now making progress and sources in the company confirm that it will be completed. Roman Bogdanov of North-Western Shipping Company says: “LNG marine fuel in our region remains a distant perspective. But there are many remote settlements and port localities here you can reach only by air or boat, thus there is a widespread network of river and sea stations. Local and regional passenger transportation with easily foreseen routes, cargo and passenger traffic may be provided by LNG-powered vessels. This fleet needs corresponding coastal infrastructure, which doesn’t exist currently. We may only be sure that in the city (at a distance of 15 minutes’ drive from the centre) there is an ideal site for the construction of an LNG bunkering and handling terminal, located on the
81