LNG Industry - March 2024

Our North American supplement is returning soon!

This special issue will focus on LNG activity in the US, Canada, and Mexico, with keynote articles, case studies, and more.

03 Guest comment

05 LNG news

10 Considering China's role in LNG

Jessica Casey, LNG Industry, UK, provides a brief overview of China’s LNG industry.

14

AI sentinels

Rotem Battat, Chief Product Officer, Captain’s Eye, Singapore, establishes how artificial intelligence surveillance can improve safety in the LNG maritime industry.

19 Decarbonising LNG

Tommaso Rubino, LNG Strategic Development Manager, Enrico Calamai, LNG Strategic and Growth Manager, Rossella Palmieri, LNG Decarbonisation Manager, Baker Hughes, Italy, outline the delivery of LNG facilities for low-carbon operations.

23 Considerations in designing floating LNG assets

Keith Hutchinson, Head of the Professional Technical and Engineering Services and Senior Consultant in Whole Ship Design and Naval Architecture, Safinah Group, UK, discusses the key drivers and safety aspects to be considered in designing floating LNG assets for exploiting stranded gas reserves worldwide.

MARCH 2024

30 Putting the Elbehafen terminal on the fast-track

Eric Farrell, Head of Commissioning at EnerMech, summarises how experience, expertise, and the right company ethos are key to safely and efficiently delivering fast-track projects.

34 The impact of rapid LNG growth

Since February 2022, LNG has become an even more vital component in the global energy mix as energy security climbs the agenda. Jose Navarro, Lloyd’s Register’s Global Gas Technology Director, addresses some of the pressures being put on safety as a result of the rapid expansion of LNG.

39 Vessel efficiency bubbling up for LNG carriers

The LNG carrier segment is recognising the need for improved vessel and fuel efficiency – clean technology can meet those needs today and in the future, says Alistair Mackenzie, Chief Commercial Officer at Silverstream Technologies.

43 A new standard of BOG management

With its increased focus on environmentally-friendly designs and operations, the global LNG carrier fleet has accepted boil-off gas management systems as the de-facto standard for today’s LNG carrier designs. Pål Steinnes, Heads of Sales and Business Development for Midstream and LNG, Wärtsilä, Norway, examines developments that have been made for enhanced flexibility and efficiency of cargo management on LNG carriers.

Gas and Heat is an Italian company with 75 years of experience and a strong vocation to the future.

Through a custom-made approach, the company provides its clients with solutions tailored to their specific needs.

Gas and Heat designs, builds, and delivers highly-engineered solutions for LNG and bio-LNG-fuelled systems, both in marine, inland waterway, and land-based areas, as well as an energy source for small-sized onshore plants. Its R&D department researches and proposes solutions for the use of alternative fuels, such as ammonia and hydrogen.

The design and manufacturing cycle of the tanks is completely carried out in the Tombolo Plant, in the heart of Tuscany.

DOMINIC MCKNIGHT HARDY MANAGING DIRECTOR, MIS MARINE

JOE ANDERSON LEAD DATA SCIENTIST, MIS MARINE

Recently, the challenges of the energy and digital transitions have been dominating and competing for attention. The combination of ongoing attacks on vessels in the Red Sea, the rise of the ‘dark fleet’ due to the Ukrainian-Russian conflict, and the prolonged drought in the Panama Canal have added another layer of complexity to global shipping.

One significant but often-overlooked consequence of the Red Sea attacks is the impact on a vessel’s Carbon Intensity Indicator (CII) grade when rerouting around the Cape of Good Hope. Providing vessels with an annual score, CII letter grades indicate the operational efficiency of a vessel over a 12-month period. Recent data from MIS Marine reveals that vessels tend to sail around the Cape approximately 10% faster compared to the Red Sea route, in what could be an attempt to mitigate the impacts to commercial schedules. For a 100 000 DWT gas tanker, this increase in speed translates to an additional fuel consumption of 291 t and a consequent increase of emissions of 920 t of carbon dioxide, compared to transiting the Suez Canal. Consequently, this would result in a 17% increase in carbon intensity under the CII framework, posing a considerable risk of a negative change in the vessel’s annually calculated letter rating.

A vessel’s CII letter rating is determined annually for a calendar year based on its operational performance. Therefore, any temporary changes in a vessel’s performance caused by external factors, especially if

Managing Editor

James Little james.little@palladianpublications.com

Senior Editor

Elizabeth Corner elizabeth.corner@palladianpublications.com

Editor Jessica Casey jessica.casey@palladianpublications.com

Editorial Assistant

Théodore Reed-Martin theodore.reedmartin@palladianpublications.com

Sales Director Rod Hardy rod.hardy@palladianpublications.com

these alterations persist for several months, could lead to a revision in the vessel’s calculated CII grade during the annual assessment. With the potential for widespread impacts, ongoing deterioration of CII is a worry for the whole supply chain.

The current Cape scenario emphasises the need for solutions that calculate carbon performance based on known values, providing a real-time assessment of carbon intensity within an actual voyage.

MIS is leading the way in applying relevant sources of vessel data, especially engine characteristics, along with operational information from geospatial data and weather/tide data, to calculate a carbon intensity value for a given voyage. This allows charterers to determine their expected carbon accountability and associated costs for the period of a voyage.

While still at a relatively early stage of CII’s rollout, it is vital that the industry recognises the importance of addressing these issues early on and implementing effective solutions to ensure the long-term success and sustainability of shipping’s carbon goals. In forgoing this functionality, CII is at risk of failing the industry, pricing players out of the market based on temporary situations that arise beyond their control.

As the initial wave of CII ratings now begin to play a part in chartering decisions, it will be interesting to observe how the industry responds to this additional layer of decision-making complexity, and the changes it will warrant.

Sales Manager Will Powell will.powell@palladianpublications.com

Production Designer

Kate Wilkerson kate.wilkerson@palladianpublications.com

Events Manager

Louise Cameron louise.cameron@palladianpublications.com

Digital Events Coordinator

Merili Jurivete merili.jurivete@palladianpublications.com

Digital Content Assistant

Kristian Ilasko kristian.ilasko@palladianpublications.com

Digital Administrator

Nicole Harman-Smith nicole.harman-smith@palladianpublications.com

Administration Manager

Laura White laura.white@palladianpublications.com

Global Chevron, Seapeak, and TotalEnergies join MAMII initiative

TotalEnergies, Chevron, and Seapeak have joined the Methane Abatement in Maritime Innovation Initiative (MAMII), led by SafetyTech Accelerator.

The three companies join the now more than 20 members of MAMII, emphasising its role in addressing methane abatement within the maritime sector.

Chevron, a global energy company, Seapeak, an owner-operator of liquefied gas vessels, and TotalEnergies, the world’s third-largest LNG player, will bring their valuable insights and commitment to MAMII's mission: tackling the critical challenge of ‘methane slip’.

The initiative has selected four providers to produce feasibility studies on the technologies which will reduce methane emissions from ships.

The release of unburnt methane is a key obstacle to unlocking the full environmental potential of LNG as a maritime fuel. Now in its second year, MAMII was launched in September 2022 by Safetytech Accelerator, bringing together industry leaders, technology innovators, and maritime stakeholders to advance technologies for measuring and mitigating methane emissions in the maritime sector.

MAMII is currently focussed on ‘on-ship’ trials, expanding the range of pilots, and starting to address fugitive methane emissions covering the entire spectrum of methane emissions on LNG-fuelled vessels.

Germany

Australia

First

modules arrive for Scarborough Energy Project

The first three Pluto Train 2 modules for the Scarborough Energy Project have arrived in Karratha, Western Australia, marking an important stage of the project. The modules, fabricated by Bechtel in Indonesia, weigh a combined total of more than 4000 t.

The modules are three of a total of 51 that will be shipped to site from the module yard to form Pluto Train 2.

Pluto Train 2 will be the second LNG production train at the existing Pluto LNG onshore facility and will process gas from the offshore Scarborough development.

The Scarborough Energy Project will contribute significantly to the Australian economy and create thousands of job opportunities during its construction phase.

Bechtel was selected by Woodside Energy to execute the EPC of Pluto Train 2, with construction activities beginning in November 2021.

Pluto Train 2 will have an LNG processing capacity of approximately 5 million tpy. Additional domestic gas infrastructure will be installed at the Pluto LNG facility to increase domestic gas capacity to approximately 225 TJ/d.

Up to 3 million tpy of LNG will be processed at the existing Pluto Train 1 following modifications to accommodate Scarborough’s lean gas. The project, will help meet the growing demand for the low-cost, lower-carbon, reliable energy the world needs today and into the future.

The Scarborough Energy Project is targeting its first LNG cargo in 2026.

DET receives provisional approval for operation of Brunsbüttel FSRU

The State Office for the Environment of Schleswig-Holstein (LfU), Southwest Regional Department, has granted Deutsche Energy Terminal GmbH (DET) provisional approval to operate the regasification terminal (FSRU) at the Brunsbüttel site. The LfU thus approved an application from DET dated 20 December 2023.

A building permit that had already been issued by the city of Brunsbüttel to operate the FSRU at the Brunsbüttel location expired on 14 February 2023. The new application by the DET was submitted because the planned relocation of the FSRU to a

newly-built jetty could not yet be carried out.

After evaluating the application, it was approved by the LfU. This means that the continued operation of the FSRU in Brunsbüttel at its current berth is formally approved until 15 February 2026, but an earlier relocation of the terminal to the new jetty is necessary due to the complex berth situation in the port. The provisional approval of the operation was subject to conditions in accordance with the BImSchG, including those relating to pollution control, building, fire protection, water, and nature conservation law.

LNGNEWS

Singapore

Pavilion Energy concludes first ship-to-ship LNG bunkering operation to Rio Tinto

Pavilion Energy has deployed the newbuild LNG bunker vessel, Brassavola, for her maiden ship-to-ship LNG bunkering operation, delivering 1970 t of LNG to Rio Tinto-chartered dual-fuelled bulk carrier, Mount Api. This follows the recent delivery of Brassavola to Pavilion Energy at the end of January 2024.

Equipped with dual-fuel engines, the Singapore-built Brassavola – also the nation’s first membrane LNG bunker vessel – has loading and bunkering rates of up to 2000 m3/h, offering customers high operational efficiency and faster bunkering turnover.

Conducted in the port of Singapore, the operation marks a pivotal moment in Pavilion Energy’s commitment to advance the maritime sector’s decarbonisation goals.

Brassavola is chartered by Pavilion Energy to supply LNG bunker in the Port of Singapore. It was built by Seatrium Limited and delivered to owner, Indah Singa Maritime Pte. Ltd, a wholly-owned subsidiary of Mitsui O.S.K Lines.

Canada

Cedar LNG provides project update

Cedar LNG and its partners, the Haisla Nation and Pembina Pipeline, have provided an update on project development milestones and timelines.

Cedar LNG has substantially completed several key project deliverables, including obtaining material regulatory approvals, advancing inter-project agreements with Coastal GasLink and LNG Canada, signing a heads of agreement with Samsung Heavy Industries and Black & Veatch, and executing a lump sum EPC agreement.

Though numerous milestones have been achieved, a number of schedule-driven, interconnected elements require resolution prior to making a final investment decision, including binding commercial offtake, obtaining certain third-party consents, and project financing. A final investment decision is now expected in the middle of 2024.

USA

Galveston LNG Bunker Port joins SEA-LNG

Galveston LNG Bunker Port (GLBP), a joint-venture between Seapath Group, one of the maritime subsidiaries of the Libra Group, and Pilot LNG, LLC, a Houston-based clean energy solutions company, has joined SEA-LNG – further enhancing the coalition’s LNG supply infrastructure expertise and global reach, while giving GLBP access to the latest LNG pathway research and networking opportunities.

GLBP was announced in September 2023 and will develop, construct and operate the US Gulf Coast’s first dedicated facility supporting the fuelling of LNG-powered vessels, expected to be operational late-2026.

The shore-based LNG liquefaction facility will be located on Shoal Point in Texas City, part of the greater Houston-Galveston port complex, one of the busiest ports in the US. This is a strategic location for cruise ship LNG bunkering in US waters, as well as for international ship-to-ship bunkering and cool-down services. GLBP will offer cost-effective turn-key LNG supply solutions to meet growing demand for the cleaner fuel in the US and Gulf of Mexico.

THE LNG ROUNDUP

X Armada Technologies announces contract with CoolCo for a hull air lubrication installation

X QatarEnergy to increase country's LNG production capacity to 142 million tpy by 2030

X GTT receives tank design order from Samsung Heavy Industries for 15 LNG carriers

Decarbonization Solutions for the Full Supply Chain

LNGNEWS

Africa

11 – 12 March 2024

10th International LNG Congress (LNGCON 2024)

Milan, Italy

https://lngcongress.com

12 – 13 March 2024

StocExpo Rotterdam, the Netherlands www.stocexpo.com

03 – 05 April 2024

26th Annual International Aboveground Storage Tank Conference & Trade Show Florida, USA www.nistm.org

30 April – 02 May 2024

2024 AGA Operations Conference

Washington, USA

www.aga.org/events/2024-aga-operationsconference-spring-committee-meetings

07 – 08 May 2024

ITLA 2024 Annual International Operating Conference & Trade Show

Texas, USA

https://ilta2024.ilta.org

07 – 09 May 2024

Canada Gas Exhibition & Conference Vancouver, Canada

www.canadagaslng.com

11 – 13 June 2024

Global Energy Show Canada 2024

Calgary, Canada

www.globalenergyshow.com

17 – 20 September 2024

Gastech 2024

Texas, USA

www.gastechevent.com

Allseas completes GTA infield pipelay scope

Allseas’ Pioneering Spirit has completed the infield pipelay scope for BP’s ultra-deepwater GTA LNG project offshore Mauritania and Senegal. Two months after arriving in the field, production crew welded, scanned, and field joint coated the final piece of pipe for the second 16-in. export gas line.

Safely landed in a 2-m target box at 2400 m water depth, the pipeline will be recovered in J-mode configuration to install the termination assembly. To make this happen, the vessel aft has been fitted with a bespoke J-mode frame with a 1000-t load capacity. It was designed, built, and installed onboard in only eight weeks.

The pipelay scope comprises approximately 75 km of 16-in. export lines and 10 km of 10-in. CRA infield lines, some of the pipeline infrastructure exceeding 2700 m water depth at the deep end. The main firing line and double jointing facilities on Pioneering Spirit have run in parallel throughout the campaign. Pioneering Spirit will conclude the offshore works by installing the six outstanding flowline termination assemblies.

Australia

Woodside to sell 15.1% Scarborough interest to JERA

Woodside has broadened its strategic relationship with JERA through a transaction that involves three core elements: equity in the Scarborough joint venture (JV); LNG offtake; and collaboration on opportunities in new energy and lower carbon services.

Woodside has signed a binding sale and purchase agreement with JERA for the sale of a 15.1% non-operating participating interest in the Scarborough JV for an estimated total consideration of US$1400 million. This comprises the purchase price of approximately US$740 million, and reimbursement to Woodside for JERA’s share of expenditure incurred from the transaction effective date of 1 January 2022. Completion of the transaction is expected in 2H24.

Woodside and JERA have also entered into a non-binding heads of agreement for the sale and purchase of six LNG cargoes on a delivered ex-ship basis per year for 10 years, commencing in 2026 from Woodside’s global portfolio.

In addition, a non-binding agreement for new energy collaboration including potential opportunities in ammonia, hydrogen, carbon management technology, and carbon capture and storage was signed to support common decarbonisation ambitions.

Completion of the Scarborough equity transaction is subject to conditions precedent including Foreign Investment Review Board approval, National Offshore Petroleum Titles Administrator approvals, Western Australia Government approvals, and satisfaction of requisite financing approvals.

The transaction also includes an option for JERA to acquire a 15.1% non-operating participating interest in the Thebe and Jupiter fields, as well as a non-binding agreement that outlines a long-term collaboration to pursue opportunities for additional feed gas and joint investment in offshore gas fields for future tieback to the Pluto LNG facility via Scarborough infrastructure. A non-binding agreement has also been signed for Woodside to provide carbon management services to assist JERA to meet its obligations associated with its share of carbon emissions from the Scarborough JV.

Following completion of the sale of equity to JERA, Woodside will hold a 74.9% interest in the Scarborough JV, and remain as operator.

Accelerating Modular LNG Solutions

Invisible. Invaluable.

Sometimes the things you can’t see make all the difference. Our integrated team of consultants, engineers, technicians, and construction professionals leverage our extensive history and expertise in mid-scale LNG technology and pioneering work in FLNG EPC to seamlessly bring our modular designs to life. Our modular LNG solutions enable fast-to-market results, so you can arrive at your destination on your terms, regardless of the technology, processes, or path.

The invaluable difference:

• Minimize interfaces and reduce prolonged onsite installation time and manpower

• Flexibility in compressor driver selection, cooling medium, and capacity from 1–2 MTPA per train

• Utilize the same modular philosophy for gas treating, heavies removal, product and boil-off handling

• Complete modular solutions for onshore and offshore applications between the pipeline and storage tank

Jessica Casey, LNG Industry, UK, provides a brief overview of China’s LNG industry.

The LNG industry in China has witnessed remarkable growth and transformation over the past few decades, reflecting the nation’s evolving energy landscape and its commitment to environmental sustainability. As one of the world’s largest energy consumers and a key player in global energy markets, China has started to strategically prioritise the diversification of its energy sources, with LNG emerging as a pivotal component of its energy mix.

China’s rapid economic expansion and urbanisation have led to surging energy demands, prompting policymakers to explore cleaner and more efficient alternatives to traditional fossil fuels. LNG, with its lower carbon footprint and versatility, has surfaced as a viable solution to meet the country’s growing energy needs while addressing environmental concerns.

The development of China’s LNG industry has been supported by robust investments in infrastructure, including LNG import and regasification terminals, storage facilities, and transportation networks. Government initiatives and the promotion of natural gas as a cleaner alternative to coal have further propelled the growth of the LNG industry in China.

Despite significant progress, challenges have persisted in China’s LNG sector, including infrastructure constraints, supply chain disruptions, and regulatory uncertainties. However, the Chinese government’s commitment to energy security, environmental sustainability, and economic development underscores its determination to overcome these challenges and further strengthen the LNG industry’s role in China’s energy transition.

US pause on LNG exports: How will this affect China?

Following US President Joe Biden’s announcement that there would be a temporary pause on pending decisions for the export of LNG to non-free trade agreement countries, 1 many people questioned how this would affect the world’s energy security. With the US having overtaken Qatar and Australia to become

Considering China’s role in LNG

the world’s largest exporter of LNG for the very first time in the industry’s history last year, 2 this is understandable.

How much would this threaten energy security elsewhere in the world? In theory, it should not affect this too much; since the pause is just on pending decisions, projects that are already operational or under construction are not affected by the decision. In addition, the US plays only a small role in supply China with LNG; US exports accounted for just 4% of the country’s total LNG purchases in 2023, 3 with most of China’s LNG imports in 2023 coming from Qatar, Australia, and Malaysia. 4 These countries are likely to continue as the dominant suppliers to Asian markets, including China.

A growth in regasification capability

By the end of 2023, China had reclaimed its title as the world’s largest LNG importer, surging to 8.2 million t in December – the highest since January 2021, according to Kpler. 5 It is perhaps no surprise then that China is expected to see a 5% rise in LNG demand, with 4 million t growth in LNG imports, according to Wood Mackenzie’s recent report, Asia Pacific Gas and LNG: 5 things to look out for in 2024 6 The country is likely to dominate LNG demand growth as it aims to continue switching from coal to gas in the hope of reducing carbon emissions and is expected to witness the highest additions of LNG regasification capacity in Asia between 2023 – 2027, accounting for approximately 35% of the region’s total capacity additions by 2027. 7

According to the same Wood Mackenzie report, China alone will add over 50 million tpy of regasification capacity in 2024, including Chinese inland waterway terminals (the first of their kind), along with new build terminals, and the expansion of existing regasification terminals. 7

Proposed and current additions

The announced Zhoushan II terminal will be the largest contributor to the country’s regasification capacity addition by 2027; the terminal is anticipated to begin operations in 2025 with a capacity of 292 billion ft 3 , which is expected to increase to 584 billion ft 3 by 2027. 7

Yantai I will be the second-largest terminal in China in regards to LNG regasification capacity additions by 2027. The terminal is being developed at the Port of Yanti along the Bohai Sea in the Shandong province, and was approved construction in 1Q20 by the National Development and Reform Commission of China. Yantai LNG Group is the proposed operator of the planned terminal, and POLY GCL Petroleum Investment Ltd has a 100% stake in the project. The terminal is expected to start operations in 2024 with an estimated initial capacity of 287 billion ft 3 , increasing to 487 billion ft 3 by 2027. 7

Meanwhile, towards the end of 2023, China Petroleum & Chemical Corp. (Sinopec) put the world’s largest LNG storage tank into service at its Qingdao LNG receiving terminal. The tank added 165 million m 3 of storage capacity to help meet the winter gas demand. The LNG storage tank, with a 100.6 m dia. and height of 55 m, is a key part of Sinopec’s Qingdao LNG receiving terminal’s phase III construction. 8

On the same day (2 November 2023), the company completed the phase II construction at its Tianjin LNG

receiving terminal – three 220 000 m 3 storage tanks were entered into full service, adding over 400 million m 3 of natural gas storage capacity. This brought the terminal’s total storage capacity to 1.08 billion m 3 , the largest in China. 8

Securing the delivery of LNG

To ensure China meets its demand, and in its endeavour to move away from traditional fossil fuels, the key Chinese companies have also signed long-term LNG supply agreements. In September 2023, ADNOC Gas and PetroChina International signed an LNG supply agreement valued between US$450 – US$550 million. 9

Another agreement from the Middle East was signed between QatarEnergy and Sinopec in November 2023. The companies signed a long-term sales and purchase agreement (SPA) for the delivery of 3 million tpy of LNG from QatarEnergy’s North Field South (NFS) expansion project to Sinopec’s receiving terminals in China over a span of 27 years. This SPA follows a previous agreement that was signed in November 2022 for the supply of 4 million tpy of LNG over 27 years, the longest LNG supply agreement in the industry’s history. 10

In addition to this SPA, the two companies signed a partnership agreement that will see QatarEnergy transfer a 5% interest to Sinopec in a joint venture company that owns the equivalent of 6 million tpy of LNG production capacity in the NFS project. This follows a similar agreement that was signed in April 2022 which marked Sinopec’s entry as a shareholder in one of the North Field East joint venture companies that own the project. 10

Moreover, Sinopec has signed a time charter contract with NYK for the transportation of LNG to China for up to 23 years, beginning in 2024 or later. This will support the country’s intent to be carbon-neutral by 2060. 11

LNG exports

Although China is the largest importer of LNG, the country does also export some LNG, although these are mostly re-exports. In fact, China is now the second largest re-exporter, after Spain, re-selling significant shipments to other countries in Asia. 12 According to Wood Mackenzie, some Chinese players are also expected to continue negotiations with LNG suppliers with the aim of building a flexible portfolio to generate trading profits as they compete in international markets with IOCs and traders.

Conclusion

In summary, the LNG industry in China represents a dynamic and evolving sector that plays a crucial role in the nation’s energy security, economic development, and environmental sustainability efforts. With continued investments, innovation, and policy support, China is poised to solidify its position as a major player in the global LNG market, while advancing towards a more sustainable energy future.

References

A comprehensive list of this article’s references can be found on the LNG Industry website at: www.lngindustry.com/special-reports

Through the strength of our North American assets, we are dedicated to helping enable the global energy transition, thoughtfully pursuing avenues to lower the carbon intensity of our LNG, and developing low carbon solutions to meet the market demand for clean, reliable energy.

At Sempra Infrastructure we develop, build, operate and invest in the infrastructure critical to meet the world’s energy and climate needs.

AI sentinels

Rotem Battat, Chief Product Officer, Captain’s Eye, Singapore, establishes how artificial intelligence surveillance can improve safety in the LNG maritime industry.

In the vast expanse of the maritime industry, where the open seas hold both adventure and challenge, ensuring safety, security, and operational efficiency is a constant quest. This exploration delves into the depths of maritime challenges, and focuses on the prevention of catastrophic accidents in the LNG industry.

The perils of LNG waters

LNG vessels sail through treacherous waters, laden with the potential for disasters like leakage, fire, and human errors that can lead to catastrophic consequences. Accidents in the LNG industry can result in massive financial losses, environmental damage, and, most critically, loss of life.

According to industry reports, LNG leakage or spillage incidents pose a significant threat. LNG is highly flammable in its vapour form, and a leak can result in a flammable cloud. The consequences of such incidents can range from environmental pollution to severe safety hazards, making the prevention of these events paramount.

A sentry against disaster

Captain’s Eye offers a line of defence against potential disasters in LNG waters. The system’s primary focus lies in the early detection of smoke, leakage,

and human errors, providing a proactive approach to safety and accident prevention.

z Smoke and fire prevention: the system is designed to swiftly identify the first signs of smoke, enabling the crew to pinpoint the source before it escalates into a full-blown fire. In LNG vessels, where the cargo is highly flammable, early detection is not just a matter of operational efficiency but a critical component in preventing catastrophic accidents.

z Human error detection: the company acts as an extra set of vigilant eyes, capable of detecting various human behaviours that could lead to accidents. Whether it is entering restricted zones or neglecting personal protective equipment, the system provides real-time alerts, allowing for immediate corrective actions.

Annually, the industry faces a staggering number of incidents that result in significant financial losses, environmental damage, and human casualties. The proactive approach facilitated by the

company could alter this landscape, turning the tide in favour of safety and prevention.

In incidents involving leakage or spillage, the system’s early detection capabilities can make the critical difference between a controlled event and a full-blown disaster. The Captain’s Eye system has the capacity to enhance safety by mitigating risks associated with LNG waters, potentially saving lives, preventing environmental pollution, and minimising financial losses.

The human factor: an overlooked risk

While the industry acknowledges the technical challenges and potential hazards posed by LNG, the human factor remains a critical, and often overlooked, element in accident prevention. Statistics from maritime safety databases indicate that a considerable number of accidents in the LNG sector can be attributed to human factors, ranging from procedural lapses to communication breakdowns.

Captain’s Eye addresses this dimension of risk by monitoring human behaviours in real time. The system’s ability to detect deviations from safety protocols, such as entering no-cross zones or neglecting personal protective equipment, provides a proactive layer of defence against accidents triggered by human error.

Navigating the evolution of maritime security

As the maritime landscape evolves, so do the challenges faced by vessel operators. New vessels come equipped with CCTV systems, offering a foundation that makes integrating Captain’s Eye into existing setups both easy and straightforward. With vessels growing larger and crew sizes diminishing, a technology-driven solution becomes imperative to bridge this safety gap effectively.

Captain’s Eye compliments these existing CCTV systems, adding a layer of advanced artificial intelligence (AI) that transforms passive surveillance into an active and intelligent safety net. The system’s adaptability to various CCTV setups ensures a smooth integration process, making it an accessible and practical solution for both new and existing vessels.

The landscape of maritime accidents

Statistics from global maritime safety databases paint a concerning picture. Accidents in the maritime industry, ranging from fires to human errors, contribute to substantial financial losses and environmental damage. As vessels become more sophisticated, the need for advanced safety solutions becomes paramount.

The data behind maritime safety

Data from maritime safety organisations indicates a persistent challenge in preventing accidents at sea. Collisions, groundings, and fires rank among the top incidents, each carrying the potential for catastrophic consequences. The financial toll of these accidents is substantial, with repair costs, environmental fines, and insurance claims reaching unprecedented levels.

The company’s system offers a proactive solution to prevent accidents before they escalate. The system’s real-time monitoring capabilities provide an early warning system, allowing crews to take immediate corrective actions and

Figure 1. Captain’s Eye dashboard with overview of the cameras, events, and statistics.

Figure 2. No cross zone detection for safety and security reasons.

Figure 3. Early detection of smoke from an oil leakage in the main engine.

prevent incidents that could result in financial losses, environmental damage, and human casualties.

The staggering reality of LNG accidents

In the realm of LNG, where the stakes are even higher due to the volatile nature of the cargo, the consequences of accidents are particularly severe. Statistics indicate a concerning number of LNG leakage incidents annually, each carrying the potential for disastrous outcomes. Delayed responses to such incidents can result in catastrophic explosions, causing extensive damage to vessels and posing significant risks to the surrounding environment.

The financial toll of LNG accidents is astronomical, with repair costs, environmental fines, and insurance claims reaching unprecedented levels. The company offers a solution to detect LNG leakage in its early stages, mitigating the risks and averting the catastrophic consequences associated with delayed responses.

Human-caused accidents

While the focus often leans towards technical challenges, accidents caused by human factors remain a silent and persistent threat in the maritime industry. Human errors, miscommunications, and procedural lapses contribute significantly to incidents that could have been prevented with heightened awareness and real-time intervention.

Captain’s Eye serves as an advocate for improved safety culture, actively monitoring human behaviours to detect deviations from established protocols. By providing real-time alerts and visual evidence of non-compliance, the system empowers crews to address potential risks promptly, thereby reducing the likelihood of accidents caused by human factors.

Enhancing safety culture

A robust safety culture is not just a set of procedures but a collective mindset that permeates every level of an organisation. Captain’s Eye contributes to the enhancement of safety culture by fostering a sense of accountability and awareness among the crew. The system’s real-time monitoring acts as a continuous reminder of the importance of adhering to safety protocols, creating an environment where safety is not just a rule but a shared commitment.

A case for early detection – the unseen danger of oil leakage

Imagine a scenario where a small oil leakage occurs in the main engine of an LNG vessel. This leakage is invisible to the cameras installed onboard, and as the oil heats up, it starts creating smoke. However, this smoke is slow to rise, making it virtually undetectable by traditional smoke detectors.

In a situation where reliance is solely on traditional detectors, minutes could pass before the system signals an alarm. Meanwhile, the unseen danger continues to escalate. The severity of such a situation is immense — a small oil leakage, if left undetected, can lead to a full-blown fire in the main engine.

Here is where Captain’s Eye becomes a game-changer. Its AI algorithms can swiftly detect the initial signs of smoke, providing a real-time alert to the crew. Within seconds, a short video is generated, allowing the crew to visually inspect the situation. In a scenario where smoke is slow to rise, these crucial seconds can make all the difference.

The crew can now efficiently distinguish between a small fire and a potentially catastrophic event. This level of early detection, coupled with visual evidence, empowers the crew to take immediate and targeted actions. The potential disaster is averted, showcasing the instrumental role of Captain’s Eye in preventing accidents and ensuring the safety of both the vessel and its crew.

Connectivity to shore

The company’s technology provides connectivity to shore. This feature enables supervisors and fleet managers to access a comprehensive suite of tools for enhanced monitoring, analysis, and communication.

Captain’s Eye facilitates real-time and recorded video access from on-board cameras, allowing shore-based supervisors to have a continuous, vigilant eye on vessel operations. This feature proves invaluable for assessing situations, responding to alerts, and conducting remote inspections, as well as post-incident investigations.

The system offers advanced statistical tools accessible from shore, providing supervisors with insights into operational patterns, incident frequencies, and safety trends. This data-driven approach empowers decision-makers to implement targeted improvements and preventive measures across the fleet.

Incorporating robust operational communication tools facilitate online and offline communication between on-board crew and shore-based personnel. This ensures efficient coordination, timely response to incidents, and streamlined operational workflows.

Recognising the significance of satellite connectivity in maritime operations, Captain’s Eye is optimised for minimal data consumption. This ensures that even in remote areas with limited satellite bandwidth, supervisors and fleet managers can access critical information without compromising the efficiency of other vessel communication systems.

This connectivity feature not only enhances the overall efficiency of fleet management but also establishes a dynamic link between on-board activities and onshore decision-makers, fostering a collaborative and proactive approach to maritime safety and operations.

Beyond standard monitoring: unveiling anomaly alerts

In a stride towards maritime safety, Captain’s Eye extends its vigilance with anomaly alerts. These alerts encompass scenarios like forgotten hardware and potential fall hazards, such as leaving a power cabinet open or materials too close to the main engine. This proactive approach not only addresses standard risks but also identifies unforeseen circumstances that could compromise both crew well-being and vessel integrity.

Conclusion

The early detection of LNG leakage, smoke, and human errors is a useful tool when navigating the waters of the LNG industry. By providing a proactive approach to safety and accident prevention, the system reshapes the narrative, ensuring that vessels sail through waters that are not just navigable but safe and secure. In the realm of maritime safety, where every moment counts and the consequences of oversight are profound, the system’s ability to prevent accidents, minimise financial losses, and, most importantly, save lives, shows its importance.

Tommaso Rubino, LNG Strategic Development Manager, Enrico Calamai, LNG Strategic and Growth Manager, Rossella Palmieri, LNG Decarbonisation Manager, Baker Hughes, Italy, outline the delivery of LNG facilities for low-carbon operations.

Decarbonising L NG

The outlook for global LNG demand is bullish. Given the current LNG price environment and the quickly changing dynamics, global LNG capacity is believed to likely exceed 800 million tpy by the end of this decade to meet growing demand forecasts. Despite some scepticism over the depth of demand long term, the industry is actively engaged in developing many new projects in the near term.

In every net-zero scenario that does not involve choosing lower living standards, half or more of the total energy demand will still be met by fossil

fuels in 2050, primarily natural gas. Baker Hughes sees natural gas as not only key to the energy transition, but also a ‘destination’ fuel.

While the IEA World Energy Outlook report projects a significant drop in demand for unabated natural gas, it also forecasts that natural gas will remain a major source of energy. The success of shared net-zero ambitions therefore depends on company’s capabilities to produce and supply natural gas in more efficient, decarbonised ways.

Focusing on the LNG value chain, real opportunities exist today to improve efficiency, reduce greenhouse

gas (GHG) emissions, and lower costs. This requires installing emissions reduction technology into existing plants and designing future plants with even more powerful emissions reduction technologies at the core.

There is no single leap to realise this objective. Multiple technologies, including those developed by Baker Hughes, either exist today or are in development that help to create low carbon emissions operating environments, including for liquefaction.

Two clear routes present the best short-term opportunities to achieve more sustainable operations:

z First, emissions can be further reduced by improving the efficiency of turbomachinery and optimising these complex systems. In addition, there are several promising avenues being explored that may unlock greater reductions in time-to-market.

z Second, electrification is providing an attractive avenue for emissions abatement. While speaking of electrification, it should be clear there is no silver bullet, no unique approach – on the contrary, there are different (and necessary) possible paths towards electrification and carbon reduction in the LNG industry, for both greenfield and brownfield projects.

Electrified LNG trains for new and brownfield projects

To maintain their license to operate, LNG operators need solutions today. For brownfield projects, electrification is one option to be considered to help reduce emissions while producing more efficiently.

For example, in the case for a brownfield project, by substituting the gas turbine for an electric motor, significant emissions reductions can be achieved – as long as the power to feed the electric motor is obtained through renewable or other net-zero emission sources.

Varying shaft-line sizes and configurations, methods of delivering electrical power, and technical constraints inherent to specific sites are some of the reasons why there are multiple solutions and approaches to electrification.

In any scenario, a consistent benefit is the tangible and quantifiable reduction in emissions. For every unit of mechanical-drive power that transitions from a gas turbine to an electric motor, the potential carbon dioxide (CO2) equivalent emission reduction amounts to:

z 20 – 40% if the electricity is sourced from a combined-cycle gas turbine (CCGT) power generation plant. The exact reduction depends on the comparative efficiency of the CCGT plant and the original mechanical drive gas turbine.

z 100% if the electricity is sourced from renewable or other net-zero emission sources.

State-of-the-art electric motors can run large scale LNG operations. When paired with renewable energy and/or nuclear power, net-zero power can be achieved.

A seminal e-LNG project is ADNOC Gas’ Ruwais LNG project, a 9.6 million tpy facility being developed to run on a combination of renewable and nuclear power. Baker Hughes is set to provide two all-electric liquefaction trains for the project that will utilise the company’s 75 MW BRUSH electric motor technology, complemented by advanced compressor technology. While this LNG project will inaugurate operations with net-zero power, existing LNG terminals can also make the shift to electrification combined with lower emissions power.

Modular option with lower emissions drivers

The expansion of the LNG market has created demand for medium-to-large projects, which can be developed relatively quickly and scaled with a turnkey option that contains the liquefaction train in modular form (1 – 1.5 million tpy).

This requires a compact yet powerful driver, such as the Baker Hughes LM9000, a simple-cycle efficiency, aeroderivative gas turbine designed with up to a 65 MW+ driver. This provides high-power density with reduced fuel use and emissions. This turbine design also allows for start-ups without venting process gas. It can operate with emissions below 15 ppm for NOX and 25 ppm for CO at ISO condition. Such modular projects can reduce CO2 emissions up to 30% compared to a traditional LNG plant based on a large size train with heavy duty gas turbines.

The turbine’s high-power density results in a smaller footprint than traditional LNG plants, making it suitable for offshore settings, which will be critical to increasing the supply of low emission natural gas. Its compact design and features that enable quick and straightforward maintenance —

Figure 1. BCL centrifugal compressor for LNG applications.

Figure 2. BRUSH Power Generation, 2-pole generator.

Figure 3. Centrifugal compressor driven by an electric motor assembled in the manufacturing site in Florence.

Designed for efficiency enthusiasts: LM9000

With 44% efficiency in simple cycle, our LM9000 is the most efficient gas turbine in the 65+ MW power range. It also helps reduce CAPEX in LNG because it doesn’t need a helper motor, and its longer maintenance intervals help reduce OPEX.

LNG capacity up, carbon intensity down.

bakerhughes.com/LM9000

including an engine swap capability within 24 hours — position the LM9000 as a practical choice for both mechanical drive and power generation applications.

Packaging power in modular liquefaction also provides plant capacity flexibility by operating multiple units in parallel to respond to market demand volatility. A power island configuration based on mid-size high efficiency gas turbine in a building block architecture couple perfectly with the modular liquefaction approach.

The LM9000 gas turbine technology has been chosen for a number of prominent global LNG developments, such as the 2 million tpy nearshore LNG project of PETRONAS in Sabah, Malaysia, and the 9.3 million tpy LNG project of Commonwealth in Cameron Parish, Louisiana, the US.

A configuration with multiple LM9000 aeroderivative gas turbines in a combined heat and power plant (CHP) provides 99+% availability. For additional flexibility and emissions reduction, renewable power can be integrated as well. For example, a 5 million tpy LNG plant that utilises electric motor machines to drive its refrigeration trains – potentially composed by 3 NMBLTM modules, working together – and is equipped with a 300 MW power generation unit, can decrease its CO2 footprint up to 15% when 120 MW of renewable power is incorporated.

Driving the energy transition

Natural gas is key to the energy transition, and the industry is now seeing a reversal of the under-investment in gas projects experienced in recent years.

57% of 555 executives from leading energy and hard-to-abate industrial firms across 21 countries claim to be investing or planning to invest in natural gas/LNG as a result of the energy security crisis, according to a survey commissioned last year by Baker Hughes and FT Longitude.

The sector has clear demand and therefore ambition to improve efficiencies and reduce emissions, along with costs. Contracts are no longer simple transactions for equipment, but long-term strategic partnerships with operational efficiency and emissions reductions at the core.

Incorporating advanced emissions reduction technologies into existing plants is imperative, ensuring even long-standing facilities align with contemporary sustainability standards. Whether the design is large scale, stick-built or for modular LNG projects, net-zero objectives can be met with a variety of viable options.

Natural gas is not the inherent issue; the primary challenge is preventable emissions. Industry needs to support burgeoning energy demand while actively reducing emissions with the technologies available today.

Powering liquefaction trains with electricity sourced from clean energy reduces emissions and – depending on location – is a readily available option. The integration of renewables can also be considered for powering further the terminal, presenting a holistic approach to cleaner energy. These exciting developments also include hydrogen as an alternative fuel source. As example, replacing natural gas with hydrogen in heavy duty gas turbines equipped with a diffusive combustion system, blending with nitrogen, can help to lower CO2 and NOX in exhaust emissions.

In addition, carbon capture and storage are critical to remove CO2 in LNG operations. By leveraging on existing technologies, like CO2 compression and pumping, and continuing fostering innovation of capture technology, the gas industry will be able to move toward a sustainable development while ensuring the safe supply of energy.

To orchestrate the integration of various configurations, equipment types, and technologies, digitalisation is essential for optimising efficiencies and further lowering emissions. Asset performance management software is becoming increasingly important to improve efficiency and achieve the global 2030 agenda.

An integrated approach combining advanced design and digital intelligence can reduce carbon emissions from the gas supply chain, including LNG.

Bibliography

1. ‘Baker Hughes Announces Milestone Electric-LNG Award for ADNOC Ruwais LNG Export Terminal, Baker Hughes, (4 October 2023), https://investors.bakerhughes.com/newsreleases/news-release-details/baker-hughes-announcesmilestone-electric-lng-award-adnoc-ruwais

2. ‘Baker Hughes to Supply Super Efficient LM9000 Gas Turbine for PETRONAS Sabah LNG Project’, Baker Hughes, (19 April 2023), www.bakerhughes.com/company/news/bakerhughes-supply-super-efficient-lm9000-gas-turbine-petronassabah-lng-project

3. ‘Commonwealth LNG and Baker Hughes Sign Strategic Agreement’, Commonwealth LNG, (21 August 2023), https://commonwealthlng.com/commonwealth-lng-and-bakerhughes-sign-strategic-agreement/

4. ‘Baker Hughes 2023 Energy Transition Pulse: Confidence to Hit Net-zero Emissions Goals Stable Despite Energy Trilemma’, Baker Hughes, (24 January 2023), www.bakerhughes.com/ company/news/baker-hughes-2023-energy-transition-pulseconfidence-hit-netzero-emissions-goals

Figure 4. LM9000 gas turbine at the manufactuirng and testing site in Massa, Italy.

Figure 5. LNG module under construction in Avenza, Italy.

Floating LNG (FLNG) technologies have been proposed and solutions developed for all regions of the world, from the arctic to the tropics. It is interesting to note that the first FLNG was actually built over six decades ago and became operational in 1959. The vessel in question was a small inshore barge moored in a ‘notch’ on Lake Calcasieu close to Lake Charles in Louisiana, the US. It produced the first 2020 t of LNG shipped – to the UK’s Canvey Island terminal on 20 th February 1959, in the first LNG carrier Methane Pioneer, which was a converted Liberty ship with 5088 m 3 of storage. However, it was only in May 2011 that the first offshore FLNG project, namely Shell’s 3.6 million tpy Prelude, gained final investment decision (FID). Currently, there are five FLNGs in service (one a conversion), with a further six (one a conversion) under construction.

An FLNG is, usually but not exclusively, located over a stranded offshore natural gas reserve. The field can be either lean or rich (i.e. with associated condensate or petroleum gasses) and usually, but not necessarily, without significant associated oil reserves. As with most traditional offshore oil FPSO vessels, an FLNG is typically permanently moored.

The FLNG receives the multi-phase well fluids to the inlet treatment facilities via either flexible, or possibly steel catenary, risers. As with a FPSO, an FLNG separates the multi-phase well fluids and stabilises any associated condensate, etc. for storage within the hull. However, following separation instead of the gas being compressed and exported via pipeline, it is further processed onboard into marketable liquefied

Keith Hutchinson, Head of the Professional Technical and Engineering Services and Senior Consultant in Whole Ship Design and Naval Architecture, Safinah Group, UK, discusses the key drivers and safety aspects to be considered in designing floating LNG assets for exploiting stranded gas reserves worldwide.

gas products. This typically uses mature and proven marinized-based natural gas liquefaction technologies in order to minimise overall solution risk and, dependent upon the field characteristics and process/number or trains, LNG production rates range from 1 – (a proposed) 10 million tpy. Typically, the gas is treated to remove the acid gas (carbon dioxide [CO2] hydrogen sulfide [H2S]), water, and any mercury (Hg). It is then cooled to extract heavier petroleum gases and then the remaining gas, mainly methane (CH4) and ethane (C2H6), is further cooled and liquefied in the cryogenic heat exchanger before any excess nitrogen (N2) is removed. The LNG, and any liquefied petroleum gas (LPG), is stored in cryogenic cargo tanks located in the hull, and any condensate also stored in dedicated tanks within the hull.

The LNG, LPG, and condensate are offloaded, at required intervals, to suitable trading LNG carriers, LPG carriers or shuttle tankers respectively. The FLNG supply chain typically basically consists of three elements:

z An FLNG offshore moored over the gas field.

z LNG carriers for transhipment to market.

z Either a standard onshore LNG reception terminal, or an FSRU vessel moored near-shore/inshore.

Note that there are alternatives to ‘in field FLNGs’, i.e. ‘pipeline FLNG’ assets which are designed receive pipeline gas from, typically, the shore and are moored near-shore or

on jetties, as with FSRUs but export LNG to LNG carriers, and are less complex.

Once the field development strategy has identified an FLNG as a possible exploitation option, certain fundamental aspects will influence the selection of an appropriate hull design with the operational life dictating corrosion margins, fatigue life, etc.

Configuration and dimensions

The upper deck area within the cargo region is typically made available for locating the topsides modules. It is good practice to site less hazardous utilities, power generation/switching, etc. modules between the more hazardous processing and liquefaction modules and the accommodation block. The principal dimensions, regulatory compliance, and safety of an FLNG are directly governed by the overall topsides layout as this determines the required ‘real-estate footprint’. Drivers include:

z Location of accommodation, topsides modules, flare, etc.

z Separation (safety) areas/gaps between groups of modules to prevent jet fires propagating and to dissipate blast, etc.

z Process deck elevation requirements to afford suitable separation of the process deck from the hull’s upper deck regarding blast, etc.

z Appropriate blast protection.

z Suitable thermal protection on the upper deck, etc. in way of cryogenic modules, etc.

z Mooring and offloading.

z Main power generation and process cooling water system philosophies.

z Provision of craneage and maintenance ways.

z Incorporation of workshops and laydown/storage areas.

z Access and escape routes.

The accommodation block cannot be sited over spaces contiguous with cargo tanks. Hence, on FLNGs and FPSOs, accommodation blocks are invariably sited over machinery spaces. Obviously, the size, layout, orientation, and location of the accommodation block will influence the design significantly.

If a turret mooring system is chosen, then this is best sited forward of the process plant if a naturally weather vaning swivel solution is adopted. If a spread mooring system is applicable, then this is incorporated on the forward and aft decks and, if moored to a jetty, then a mooring arrangement based on a standard marine one can be adopted, which will impinge little on the upper deck.

Offshore, the offloading solution for LNG and LPG is, currently, side-by-side due to the predominant application of ‘hard-arms’. However, this is not the case for condensate where a tandem arrangement with the offtake shuttle

Figure 1. 2016 newbuild 177 000 m3 membrane 1.2 million tpy nitrogen cycle FLNG.

Figure 2. 2009 147 600 m3 spherical IMO Type B SS ST LNG carrier.

tanker in line astern of the FLNG is typically adopted; hence, the offloading system needs deck space at the aft end of the FLNG for turret moored designs – for spread moored designs it is possible that a buoy system may be utilised.

Topsides liquefaction and process

Only the N 2 cycle and the mixed refrigerant (MR) liquefaction processes, both single (SMR) and dual (DMR), have been currently utilised offshore due to the inherent footprint limitations of an FLNG compared to a land-based development. The MR process offers the greatest liquefaction efficiency and lower space requirements due to using liquid rather than gas refrigerant(s). However, such liquid refrigerants are flammable and hence a potential source of vapour clouds. Practically, the SMR process and the N 2 cycle, even with pre-cooling, can only produce up to approximately 1.5 million tpy of LNG per train; amounts above this requires application of the DMR process.

Specific aspects of the topsides that drive the hull design from the earliest stages are:

z Relative layout and separation requirements of modules.

z Footprint of individual modules.

z Weight (dry and wet), extents, etc. of individual modules.

z Longitudinal and transverse centres of gravity of individual modules.

z Vertical centre of gravity of individual modules and elevation of the process deck.

Due to the large footprint required for LNG topsides modules, it may be advantageous to site non-hazardous process utilities, such as sea water cooling pumps and heat exchangers, power generations/transformers/switchboard rooms, etc. below the upper deck within the hull rather than in modules on the process deck.

Containment system

The selection of the containment system is governed the metocean environment, cost, and preference, etc.

It fundamentally drives the structural arrangements and scantlings, together with the principal dimensions and configuration. The common choices of containment system are:

z Self-supporting spherical IMO Type B – converted LNG carriers only.

z Self-supporting prismatic IMO Type B (SPB).

z Membrane – typically GTT’s Mk.III variants and No.96 systems.

Storage capacity and configuration

A model of the production rate together with offloading frequency/parcel size(s) and required buffer storage for weather, and to a lesser degree tank inspection and maintenance requirements, will determine the minimum required LNG, LPG, and condensate cargo storage capacity. In addition, the regulatory regime, chemical requirements, refrigerant (for liquefaction process) requirements, etc. must also be determined and accommodated within the hull. Depending upon the required cargo storage, together with the selected containment system and tank sizes, etc. then the configuration of the cargo region can be significantly affected as it may force cargo tanks to be ‘in-line’ or ‘wrapped’, etc.

Environment

The environment has many facets, such as: whether the location is offshore or near-shore; waves categorised as benign to harsh with unidirectional or bi-directional seas; wind; currents, etc. Even sea areas with ice can be exploited using FLNGs provided suitable hull forms, construction materials, scantlings, and moorings are applied. The environment imposes an upper and a lower limit on FLNG dimensions – too small and motions will be too extreme to provide a stable platform for the operation of the topsides, too large and the mooring system will be unduly affected. Other aspects which must designed for include acceptability of motions regarding safe personnel operations, extreme wave, loads, etc.

The wave environment can introduce large bending moments and shear forces into the hull girder. In the more extreme and harsh environments, actual site-specific longitudinal wave bending moments can significantly exceed the classification societies rule values from the worldwide service. This therefore necessitates a new-build specially-strengthened hull with extensive additional longitudinal and other material compared with trading LNG carriers designed for standard worldwide service. For more benign locations utilising small-to-medium FLNGs, conversion of existing LNG carriers' tonnage can be advantageous but requires incorporation of significant hull sponsons due to the large deck area required for the topsides process and liquefaction trains and associated equipment, not to mention their weight.

Mooring and heading control

Selecting the most appropriate mooring system is dictated by the environment, water depth, and riser solution being employed – in fact selection of the mooring and riser

Figure 3. 2018 newbuild 26 000 m3 IMO Type C jetty moored 50 million ft3/d mini-FSRU.

2024

Conference & Trade Show

May 6-8

HOU TX

ILTA 2024, the leading conference and trade show for the bulk liquid terminal industry, is set to be our biggest yet!

Join thousands of terminal industry professionals from around the world for:

 Inspiring keynotes plus in-depth educational sessions featuring expert speakers

 The ILTA exhibit floor packed with hundreds of industry solution providers

 World class networking including a special celebration of ILTA’s 50th anniversary

 All in Houston, TX—the Energy Capital of the World!

solutions are directly linked, and the number and type of risers can drive the selection of the mooring system. For offshore locations a either a multi-leg spread mooring system, yoke, external turret, or internal turret (which could be and disconnectable and the FLNG self-propelled) could be employed. If employed in sheltered waters an FLNG can be pier/jetty moored or even located in a shoreline ‘notch’.

In moderate to harsh wave climates FLNGs must weathervane into the predominant wave direction to control roll motion and reduce mooring loads, motion induced process and offloading downtime, etc. hence a turret must be incorporated. In more benign environments, an FLNG can be spread moored so that it is aligned into the predominant swell in the knowledge that non-aligned environments will not significantly increase mooring loads or impact on motion induced downtime. If extreme environmental events such as hurricanes, typhoons, or floating ice are possible then a disconnectable mooring system and installed propulsion system to facilitate the FLNG to steam away (or possibly be towed dependent on size the attendant ships) may be a desirable solution.

Thrusters can be an integral part of the mooring solution or only be used to improve the operability of the FLNG by, for example, maintaining best heading for low motions or providing heading control during offloading operations. If they are an integral part of the mooring solution then classification society rules require high levels of redundancy in the power generation, control and thruster components. Thruster installations must consider access for maintenance at sea, as the FLNG will remain on station throughout its operational life.

Regulatory framework

Most of the major IACS classification societies now have rules governing the design of FLNGs.

In nearly all regions of the world, some form of process to permit the operation of an FLNG exists, which involves audit of the design solution as well as its means of operation. This is heavily regulated by some national governments, while others simply accept classification society approval. The regulations of some countries are prescriptive in nature whereas others are ‘goal-setting’ in approach and lay down requirements and require an operator to demonstrate that the risks to the operators,

third parties, and the environment are as low as reasonable practicable (ALARP).

While the hull designer may refer to classification society rules to demonstrate the safety of their solution, this must be documented in design and operations safety cases. Specifics relating to the field environment, mooring solution and topsides, and subsea interfaces must be addressed in the hull design safety case documentation.

Safety

As with the design of any marine artefact the primary goals in designing an FLNG are personnel safety (including possible de-manning) and asset operability. It is imperative that the naval architect comprehensively explores the design space in an efficient manner to arrive at the safest and near-optimal FLNG design with respect to integrity and operability, redundancy, etc. Specific safety considerations include:

z Emergency shutdown.

z Survivability/stability.

z Blast and spill protection.

z Firefighting and protection.

z Access and escape routes.

z Lifesaving and evacuation.

It is imperative that the maintenance and inspection strategies, etc. are inherent within the design from the concept phase onwards. To ensure that a coherent and near-optimal design is developed it is crucial that the design team (process, marine, mooring, subsea, operations, etc.) is fully integrated with an open communication culture in which lessons learnt are freely communicated and adopted and driven by an experienced design authority with the skill sets to understand and rationalise all aspects of the asset.

Summary

Just as that FPSOs enabled the development of remote and deep-water oil reserves from the 1970s onwards, it is obvious that due to their relatively low capital costs and rapid project realisation FLNG solutions are the technology catalyst for the successful development offshore stranded gas fields. Given the recent financial climate growth has been restrained over the past few years, however, given the current energy market, FLNG is back in vogue with five projects sanctioned in the past couple of years and hence FLNG liquefaction capacity is set to double from the current 12 million tpy to almost 25 million tpy by 2026, and a further 16 FLNG projects in pre-FEED.

Disclaimer

The views expressed in this article are those of the author and do not necessarily represent those of the organisations with which he is affiliated and the professional institutions of which he is a member.

Figure 4. Author’s design of a condensate and 275 000 m3 SPB 5.1 million tpy DMR FLNG for an extremely harsh remote location, offloading to a 137 500 m3 spherical IMO Type B SS ST LNG carrier.

A

global industry requires a global publication

In an era characterised by swift transformations in the energy sector, the demand for a varied and flexible work ethic within the supply chain has become more critical than ever before. It is imperative for the supply chain to showcase its agility and adaptability in meeting client requirements. This emphasis on responsiveness has now evolved into the necessity that can expedite and execute projects with both efficiency and safety.

This trend is particularly evident in the way countries are proactively addressing global developments. They are not only diversifying their energy sources, but also placing significant focus on reducing carbon emissions.

Eric Farrell, Head of Commissioning at EnerMech, summarises how experience, expertise, and the right company ethos are key to safely and efficiently delivering fast-track projects.

PUTTING THE ELBEHAFEN TERMINAL ON THE FAST-TRACK

Germany, for example, has embarked on a major undertaking to reduce reliance on Russian gas imports through the development of its Elbehafen LNG import terminal at the port of Brunsbüttel.

This underscores the increasing need for a supply chain that can swiftly navigate these shifts in the energy landscape.

The commissioning strategy EnerMech OTS has devised places strong emphasis on early involvement, ensuring that a team of experienced engineers are engaged, if able, from the very beginning of each project. This approach enables the company to work in close co-operation with its client and all stakeholders, from conceptualisation to execution, ensuring a

comprehensive understanding of project goals and responsibilities. Integrating skilled experts at the outset maximises efficiency, helps anticipate challenges, and enhances the overall quality of the commissioning process.

Q. What does the Elbehafen project involve?

A. The purpose is to enable the import of large amounts of LNG as quickly as possible to a country that had no direct access to the LNG market. The long-term establishment of the LNG import terminal will help Germany reduce its dependence on Russian energy.

Phase one involved the construction of necessary technical infrastructure at an existing jetty at the port of Brunsbüttel to accommodate an FSRU commissioned by German multinational energy company, RWE, on behalf of the country’s government. Work on a dedicated new LNG import jetty is also proposed and expected to begin between 2Q24 –3Q24.

Phase two will see the new state-of-the-art jetty, which will accommodate the FSRU on a longer-term basis, come into operation. The third phase will see gas being fed into a newly constructed gas pipeline which will have the capacity to carry 7.5 billion m3 of gas, generated from 12.5 million m3 of LNG/y.

Q. What is EnerMech OTS’ workscope on the Elbehafen project?

A. EnerMech OTS – a strategic partnership alliance between EnerMech and Offshore Technical Services (OTS) – was awarded a contract by Worley for the provision of precommissioning and commissioning planning and execution services, plus specialist services across the project, such as nitrogen (N2) leak testing, flange management, boroscopic inspection for pipeline cleanliness, and strength testing of the newly built temporary oil pipeline (the original oil offloading facility is now being used for LNG import).

At the client’s request, EnerMech OTS was involved in all the main areas in phase one, including design and engineering assistance, turnover, construction and commissioning, handover, start up, and operations – meeting the requirement for this to be completed within a timescale that was ‘as short as possible’.

Prior to the contract award, acting on a verbal agreement only, EnerMech OTS demonstrated its competence and trust by performing the following:

z Early systemisation and scoping of the project.

z Development of completions management system database, complete with construction and commissioning completion inspection test records (ITR).

z Commissioning schedule and detailed plan.

A full commissioning team at Elbehafen has taken the project from the construction/mechanical completion stage through to operations handover, delivering enhanced continuity of planning execution, interface reduction and the project delivery.

Q. What experience and expertise did EnerMech OTS bring to the table?

A. EnerMech OTS has global experience in servicing the LNG industry that has seen the company work across 20 different facilities in a growing geographical spread which includes Australia, Africa, the Americas, the Middle East, Caspian, Europe, and Asia – and, as announced in 2023, Canada.

The Canadian project was a strategically important win for EnerMech OTS as it looks to increase its foothold as a specialist services provider for LNG production, storage, and loading projects. This award further highlights the company’s growing reputation for its capabilities to deliver specialist and integrated mechanical, electrical and instrumentation services, and equipment to clients in different geographies around the world.

EnerMech’s track record of work spans the asset lifecycle from early engineering to pre-commissioning, commissioning and start-up, to operations and maintenance and specialist shutdown and turnaround scopes.

The company’s experience and the broad range of services it provides has expanded over the years, equipping us with the scope to deliver a broader level of expertise and capability than ever before.

Having this as a solid foundation was key to the industry-leading project delivery of this strategically important project for Germany.

Q. Where did the EnerMech OTS LNG story begin?

A. Our legacy as a premier provider of integrated specialist services in the LNG market stretches back over the last 15 years and has its roots in Australia, which led the way in large scale global LNG projects.

The Gorgon and Wheatstone LNG developments offshore Western Australia were two early flagship projects which continue to supply gas to Australia’s domestic market and exports to China, India, Japan, and South Korea.

The company’s legacy from working on Australian mega-projects helped introduce its services and expertise to the global LNG market, and this has continued to thrive due to EnerMech’s toolbox of speciality services and integrated approach, allied to its ability to quickly ramp up activity as required by the Market Tier 1 contractors.

Q. What needs to be taken into consideration when fast-tracking projects?

A. Fast-tracking a project requires much more than just pulling the timeline forward. Fast-track projects require specific advance planning followed by detailed execution to avoid problems regardless of the reduced timescales and teamwork is essential to ensure project delivery at a safe, accelerated pace.

This means the ability to mobilise quickly with a team that has the specialist skills required, who can be

Figure 1. Elbehafen LNG import terminal is being fast-tracked with EnerMech’s help.

adaptable and flexible in responding to emerging needs and demands of clients and the ability to fulfil a wide variety of requirements through a broad range of specialist capabilities. The partnering and trust though EPC is led by leadership commitment and action, setting the tone for the company’s can-do approach, common purpose and shared motivation.

Q. What is the EnerMech OTS approach to fast-tracked projects?

A. We see communication, co-operation, and co-ordination as the backbone of safe and successful project completion. Project quality and HSE are equally critical in the delivery process, and this came to the fore at Elbehafen with a 100% safety record with EnerMech OTS incident and injury free. Achieving this safety record emphasised the importance of good communication and ensuring proven and experienced individuals were in place for the more challenging aspects of the work. Accident risks increase when unplanned modifications to the schedule and congestion problems occur therefore underlining the need for meticulous early planning and dedicated reporting at all times.

Q. How important is good teamwork in a project?

A. It is absolutely crucial. For example, different teams might be working in areas simultaneously, which could lead to an increase in safety risks. That means it is critical that managers and teams communicate well to mitigate risk and ensure safe working conditions. Commitment to simultaneous operations workshops and risk assessment creation is essential to ensure

all parties within the project have complete understanding and buy-in to daily activities

The fast-paced approach employed by the team highlighted the importance of collaboration and proactive involvement. In contrast to becoming delayed in the workings of contractual documentation, which in some cases does not lend itself to efficient work, the team proactively championed a basis of trust with the client. This resulted in the achievement of a shared goal, thereby successfully realising the milestone of the first gas import.

As a result, team members were commended by the client for their technical knowledge and also for their ethos and approach to the project.

Q. What can we expect in the future?

A. The demand for LNG is on a strong upward trajectory as countries around the globe seek alternative forms of energy as they move towards the energy transition. Germany’s example in fast-tracking its access to LNG through the Elbehafen project is a clear indicator that governments are prepared to make significant investment into the development of their LNG capabilities.

Clearly, there is an appetite to move projects forward at pace. As an experienced contractor with a solid pedigree of LNG projects successfully completed over many years, coupled with its expertise and capability of handling fast-tracked projects worldwide, EnerMech OTS is well-placed to support the development of these strategically important developments around the globe.

Since February 2022, LNG has become an even more vital component in the global energy mix as energy security climbs the agenda.

Jose Navarro, Lloyd’s Register’s Global Gas Technology Director, addresses some of the pressures being put on safety as a result of the rapid expansion of LNG.

ethane is fundamentally stable. In fact, among the gases covered by the International Code of the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code), LNG is actually one of the safest. As a liquid – at -163˚C – it is completely safe provided that it is properly contained and managed. So, thankfully, accidents involving LNG carriers, which ship methane by sea as a liquid, are rare.

Historically, the sea transport of LNG was not a typical shipping market. Ships were built and made available on long-term contracts linked to specific LNG supply contracts. There was no spot charter market for LNG carriers: long-term rates were fixed in advance and only adjusted with small annual escalations written into contracts in advance.

Over the last decade, however, the LNG market has changed beyond recognition. A new generation of owners has

appeared on the scene, ordering ships on spec and prepared to deploy their new vessels on medium, short, or even spot contracts. The returns can be spectacular, with day rates well into six figures when market conditions are tight.

Recently, global energy concerns have turned the heat up. LNG exports from major producers including the US, Qatar, and Australia are climbing fast. New LNG producers are joining in as consuming nations ramp up their import capacity, commissioning new floating terminals that can be brought into operation far more quickly than shore-based facilities.

Dramatic fleet expansion

Increasing demand has driven exponential fleet expansion. For many years, the world fleet of LNG carriers was relatively stable at around 400 ships. Over the last five years, this has risen sharply to around 700 vessels. With the

The impact LNG

of rapid growth

Figure 1. LNG tanker at sunset.

current orderbook at record levels, this will add another 400 ships over the next few years – the specialist yards that build these highly sophisticated ships are full until around 2028.

Rampant demand for LNG carriers has attracted a number of new construction yards, with others preparing to join in. And, despite the fact that shipyards in Europe, including Navantia in Spain and Chantiers de l’Atlantique in France, have built LNG carriers in the past – ships that have operated safely and successfully throughout their lives – the new yards are all in Asia, specifically China.

It is worth noting that not everyone is comfortable that the newcomers have the expertise equivalent to the old-timers. Careful oversight is essential and the role of leading classification societies with expertise in this sector cannot be underestimated. This is important at every stage of

the construction process – from the appraisal and approval of individual components right through the build to the finished product.

Safe management

LNG is inherently safe but, if it is not properly contained and managed, it is extremely dangerous. If there is a source of ignition, for example, even several hundred metres away from a leak, there is a high risk of flash-fire and explosion.

So, recent developments indicate that there are new safety implications relating to the transport of LNG by sea. As the number of vessels is already rising quickly and set to accelerate in the years ahead, a new generation of LNG seafarers will be required to take control of these vessels.

There will be a combination, therefore, of new shipyards building some of the world’s most sophisticated ships and potentially quite unfamiliar seafarers operating them. An actuary would inevitably conclude that the probability of a major incident is bound to increase.

Rising ship prices

LNG builders hold the whip hand in the present market because demand is strong but yards are full. No surprise, then, that ship prices have risen sharply. At less than US$180 million for a typical 174 000 m3 vessel during COVID, prices have climbed to more than US$260 million for an equivalent vessel today.

This is a positive development in some ways because some standard ship specs now include what would previously have been optional extras. Features such as shaft generators or air lubrication systems may be included as standard. However, higher prices mean higher day rates, and ultimately owners must be able to offer charter deals that are competitive in the market.

The choice of main engine could potentially provide a safety and sustainability issue. Two-stroke, diesel-cycle, high-pressure injection engines offer the best performance, with lower fuel consumption and emissions than other engine types, but they are more expensive because of the additional equipment required for the fuel gas handling system.

Methane emissions

The issue of methane emissions should also be highlighted. This is a growing focus for regulators (notably in Europe) because methane is many times more pollutant as a greenhouse gas than carbon dioxide. International Maritime Organization (IMO) carbon intensity regulations do not yet include methane in ship cargo intensity assessments but will do so later this decade. Dual-fuelled diesel-electric LNG carriers will be in the firing line because emissions from four-stroke engines are higher than those of two-stroke units.

This can be compensated to some extent by measures such as the installation of pre-combustion carbon capture systems where hydrogen is separated from the methane in boil-off gas (BOG) and injected into the engine at a rate of about 25%. It will also be possible to ensure that engines operate at their most efficient level by using batteries, for example, to compensate for the peaks and troughs of varying ship loads.

The Methane Abatement in Maritime Innovation Initiative (MAMII), led by the Safety Accelerator and established by Lloyd’s Register, is already making significant strides in

Figure 2. Lloyd’s Register serveyor inside an LNG tank.

Figure 3. LNG tanker passing by the Strait of Singapore.

addressing the methane challenge.1 With a number of high-profile LNG sector participants, the project is focusing on new technologies that will monitor and mitigate methane emissions through a variety of initiatives.

Meanwhile, for the 240-odd steam turbine-powered LNG carriers, methane emissions are not an issue. However, from an environmental point of view, their poor fuel performance has significant implications for carbon intensity ratings. In fact, experts have suggested that all steamers will fall into the two ‘unacceptable’ categories under the IMO’s Carbon Intensity Indicator rating system.

There are technical measures that can be taken, such as retrofitting dual-fuel engines with Power Take In (PTI) to the shaft or installing reliquefaction units to handle excess BOG. However, many of these steamers are already quite old and the substantial investment that would be required could be difficult to justify in terms of a satisfactory payback.

It is likely that these ships will be steadily phased out as new ships join the fleet. As well as fleet expansion, that will drive significant demand for fleet replacement – a further pressure on LNG construction capacity.

Operational issues

There is concern regarding two specific aspects of ship operation that can generate safety issues. The first of these is cargo tank filling levels. Prior to the publication of the IGC Code in 2014, LNG carrier operators were accustomed to filling cargo tanks to a level of 98.5%.

The revised code required additional measures to load tanks to more than 98%, but these requirements only applied to new ships. There are now steps that can be taken to load tanks to 99% or even 99.5%.

Operators of older ships have looked for ways to compete on tank filling levels – the additional revenues from slightly higher cargo volumes can total millions of dollars a year for their cargo-owning customers. The result is a large number of LNG carriers with tank levels up to 99.5%.

This reduces ullage but also cuts safety margins. Crews have less time to take action and prevent an overflow of cargo. The risk of an incident is likely to increase.

However, this issue is being addressed by the Society of International Gas Tanker and Terminal Operators (SIGTTO). The society is currently working on a new set of requirements which will apply to all LNG carriers across the entire fleet, regardless of age.

A second issue of concern is that as strong day rates make ship downtime more expensive, owners do not want to take ships out of service for the usual five-year survey but would rather keep them in operation beyond this cycle, thereby extending the cargo tank entry period.

This should not necessarily be seen as a reduction in safety, but nevertheless poses an extra challenge for ships’ crews as they carry out maintenance and certificate renewal during routine ship operation, rather than when the ship is under repair in a drydock. Seen in another light, however, the result and quality of a ship’s overhaul undertaken while a ship is operating cannot possibly be as sound as one undertaken in dock.

References

1. Methane Abatement in Maritime Innovation Initiative, https://mamii.org

BE WISE WHEN YOU ADVERTISE

Everyone wants to get what they paid for. LNG Industry is independently verified by ABC, because we want our advertisers to know they’re getting the exposure they’ve been promised.

ABC. See it. Believe it. Trust it.

The LNG carrier segment is recognising the need for improved vessel and fuel efficiency – clean technology can meet those needs today and in the future, says Alistair Mackenzie, Chief Commercial Officer at Silverstream Technologies.

The global LNG carrier fleet is expected to exceed 1000 ships in the ocean by 2026. This includes 300 new LNG carriers over the next three years, as demand for natural gas grows to fuel decarbonisation efforts across the world.

The existing LNG carrier fleet presents strong opportunities for vessel fuel efficiency retrofits, and the impending orderbook

is fertile ground for newbuild efficiency improvements. Both will be achieved through the implementation of clean technology.

Silverstream Technologies’ air lubrication system (ALS), the Silverstream® System, is one such solution. It releases a carpet of air to reduce the frictional resistance between the hull and the water, reducing average net fuel consumption and greenhouse gas (GHG) emissions by 5 – 10%.

Silverstream’s technology is uniquely suitable for both retrofit installations and newbuild vessels. It is a proven lifecycle solution for efficiency, with class-approved components that are designed to last the lifespan of a vessel. This means it can deliver fuel burn and GHG emissions reductions today, while futureproofing assets for shipping’s longer-term efficiency and decarbonisation drives.

The system is applicable to all shipping segments and is effective in all sea states, but it is particularly well suited to the LNG carrier segment as these vessels have a large flat bottom that maximises the system’s ability to reduce friction. It reduces average net fuel consumption and emissions for LNG carriers by 7 – 10%, which typically equates to a 1 MW net power saving. Plus, it is important to remember that reducing fuel burn not only lowers emissions, but also cuts fuel costs for ship operators.

The system can also help to reduce LNG boil-off and increase delivered cargo volume, or cut fuel consumption and associated emissions, depending on the operator’s commercial and sustainability priorities. This is because ALS can be used either to enable vessels to travel at higher speeds for the same fuel consumption, or to cut fuel consumption and emissions without sacrificing speed.

According to VesselsValue data, the value of the 162 LNG newbuilding orders placed in 2022 reached US$33 billion, leaving a huge orderbook of assets that must all be effectively managed through shipping’s energy transition to retain their value. The world is at a critical point in time for adopting clean technology; there is a real and present danger of stranded assets, and the incentives and disincentives for improving vessel efficiency are incrementally gaining more weight.

Looking specifically at evolving industry regulations, the EU’s Emissions Trading System (EU ETS), FuelEU Maritime, and the International Maritime Organization’s Carbon Intensity Indicator (IMO CII) are, in a nutshell, all set to enhance the value of proven fuel efficiency solutions. The LNG carrier segment in particular has recognised this, and has been putting its commercial weight behind air lubrication technology, such as that offered by Silverstream.

LNG carrier efficiency investments

At the time of writing (February 2024), there are 196 vessels contracted to have the Silverstream’s technology installed across all shipping segments, with 63 systems in-service today. 37 of the current orders are for LNG carriers and there are currently 13 systems already in-service on LNG carriers today. Customers include Carnival, MSC, Maersk, Grimaldi, Shell, Vale, Knutsen, and ADNOC L&S, amongst other major industry names.

Most recently for the LNG tanker segment, in August 2023, the company announced 10 new orders for LNG

carrier installations. Six of the undisclosed orders are for retrofit projects taking place between 2023 – 2025, and four are for newbuilds which will be delivered between 2026 – 2027.

Meanwhile, back in January 2023, the company signed an agreement with CSSC Jiangnan Shipyard Group Co. Ltd to supply the ALS to six 175 000 m3 LNG carriers which form part of the newbuild LNG carrier programme being constructed for Abu Dhabi National Oil Company (ADNOC).

The company also signed an agreement with China Merchants Energy Shipping in January 2023 to install the system on four 175 000 m3 LNG carriers being built at Dalian Shipbuilding Industry Company (DSIC). The installations will take place over the next two years, with work expected to be completed by the end of 2024, in line with DSIC’s building schedule.

Shipyard collaboration

With LNG carrier orders booming in recent years, owners are working with shipyards worldwide on construction – including in Asia. Additionally, with shorter lead times available, shipowners may be driven to ordering from Chinese shipyards for the first time, in order to get their new ships earlier and leverage the high LNG shipping rates.1 In 2022, there were a record 180 vessels contracted from Chinese and Japanese shipbuilders alone.

The Silverstream team collaborates with a growing number of LNG carrier and other shipyards in the Asia-Pacific (APAC) region and beyond. This includes Jiangnan Shipyard, China Merchants Energy Shipping, CSSC and China Merchants Group, Malaysia Marine and Heavy Engineering (MMHE), Dubai Drydocks, and Seatrium. The company also has an agreement in principle for its technology with the China Classification Society. In April 2023, Silverstream also signed an agency agreement with Orient Marine to facilitate the export of its technology to Japan.

This growing relationship with APAC shipyards and other stakeholders is a direct result of the company’s Shanghai office. Shipyards now have a good understanding of the system and how to quote installation projects accurately. These partnerships are critical to Silverstream’s operations, and also for scaling clean technologies more broadly, as they bring local expertise and third-party validation into the process of installing solutions.

Most clean technologies can be efficiently fitted during the vessel build phase, and some can also be efficiently retrofitted. On the retrofit front, Silverstream has been working with shipyards to install during pre-existing scheduled dry dock periods. For example, the retrofit could be done at the vessel’s first drydock for LNG carriers, which is normally five years after delivery.

These relationships also reinforce global supply chains –which are key to commercialising clean technologies in an international industry. Despite the supply chain challenges affecting many other companies, Silverstream has never failed to deliver a project on time. The company believes its ALS can become a standard application on all newbuild vessels in the global fleet, as well as a go-to retrofit option, and is realistically targeting 500 orders across all vessel segments by 2025.

Futureproof solutions

Ship owners and operators are increasingly recognising that clean technologies will play a significant role in

Figure 1. A rendered example of the Silverstream® System.

decarbonisation today, but it is also important to recognise how they will evolve over the lifespan of a vessel. When planning for the energy-transition long-term, a proven full lifecycle solution for efficiency must be the focus.

With this in mind, shipping will have to change its clean technology outlook. Currently, technology – whether physical or digital, traditional or innovative – is generally seen as a means to fulfil the requirements of today, not to anticipate the future. However, data and digitalisation are already driving the evolution of Silverstream’s technology and will continue to do so into the future.

When it comes to data and digitalisation, the shipping industry is following the well-trodden route of other sectors that have effectively integrated technology and leveraged its potential to advance their businesses. Shipping now broadly recognises the importance of the digital journey and the potential of data. It is no longer a matter of whether the industry will embrace digitalisation and data but, rather, when and how rapidly it will do so.

So, how can data and digitalisation ‘level up’ clean technology? Firstly, looking at the company’s ALS, it already delivers fuel efficiency and reduces carbon emissions across every vessel it is installed on. However, it is important to accurately calculate, measure, and report the precise efficiency level and decarbonisation impact. Consequently, monitoring and measuring performance data, as well as system health, is already becoming an integral component of the system.

Secondly, the integration of an ALS within the vessel’s ecosystem provides unparalleled insights into a ship’s hydrodynamic performance. Data from the company’s system can be harnessed, as well as multiple sensors around the vessel, to gain an in-depth understanding of air lubrication technology and identify factors that could influence the ship’s overall performance.

In basic terms, data can and will be used by clean technology manufacturers to raise both the floor and ceiling of fuel saving potential. Like the intelligent systems within modern cars that tune the vehicle’s engine as it drives, maritime clean technologies will learn and respond to their environment and operate in a way that ensures maximum efficiencies.

Conclusion

In summary, with the LNG carrier segment growing, there are increasing opportunities to adopt vessel efficiency solutions such as clean technologies. With the emissions reductions and the fuel cost reduction benefits clear, this represents a win-win-win for shipowners, operators, and clean technology providers. Plus, with the changing regulatory and market landscape starting to support cleaner vessels and punish polluters, the time is right to adopt these efficiency solutions.

As well as the LNG carrier segment, the APAC market is generating opportunities for both retrofits and newbuild installations of clean technologies. Finally, it is important to view clean technologies as a longer-term efficiency solution that will evolve alongside shipping’s energy transition and improve efficiency across the entire lifespan of a vessel.

References

1. WILLMINGTON, R., ‘LNG carrier newbuilding orderbook hits 59% of the existing fleet in service’, Lloyd’s List, (12 July 2023), https://lloydslist.com/LL1145871/LNG-carrier-newbuildingorderbook-hits-59-of-the-existing-fleet-in-service

OPERATIONS CONFERENCE

SEATTLE, WA • APR 30–MAY 2

HYATT REGENCY SEATTLE

The American Gas Association’s annual Operations Conference is the natural gas industry’s premier networking event. Put yourself among the industry’s thought leaders to collaborate, exchange leading practices, and drive innovation that promotes the safe, reliable, and cost-effective delivery of natural gas.

Register at www.aga.org/events for this two-day event, which will provide opportunities to learn from your industry peers with over 120 presentations focusing on the following topics:

Engineering

Emergency Management & Public Safety

Gas Control

Gas Utility Management

Hydrogen

Integrity Management – Distribution & Transmission

Measurement – Distribution & Transmission

Pipeline Safety Management Systems

Piping Materials

Renewable Natural Gas

Underground Gas Storage

Worker Health & Safety

Workforce Development

…And More!

For questions, contact Allison Hartle at ahartle@aga.org.

With its increased focus on environmentally-friendly designs and operations, the global LNG carrier fleet has accepted boil-off gas management systems as the de-facto standard for today’s LNG carrier designs. Pål Steinnes, Heads of Sales and Business Development for Midstream and LNG, Wärtsilä, Norway, examines developments that have been made for enhanced flexibility and efficiency of cargo management on LNG carriers.

Over recent decades, natural gas has become a vital energy source for the world. Even though much of it is carried through pipelines, a significant portion is still liquefied and transported across the globe on purpose-built LNG carriers.

Since LNG has a boiling temperature of around -163˚C, one of the main challenges when transporting LNG is the

cryogenic temperature level required to maintain the cargo in a liquid state.

Boil-off gas management

As the LNG trade consists of different parcel sizes and ships, different concepts are applied for different trades, but all large-size LNG carriers (> 40 000 m 3 ) are fitted

with containment systems that allow an operating pressure only slightly above atmospheric. Therefore, handling the boil-off gas (BOG) generated as a result of heat ingress created by the temperature difference between ambient surroundings and the cold cargo is one of the biggest operating challenges onboard LNG carriers. Venting of natural gas to the atmosphere results in direct emissions of greenhouse gases and is therefore prohibited, except as an absolute last safety-measure in emergency situations.

As a climate-friendly fuel, the majority of BOG is utilised for the ship’s propulsion machinery or power generators, which is also an efficient way of managing the cargo tank pressure levels. However, as ships have various operational scenarios with different consumption modes, and are exposed to different ambient conditions, tank pressure management is a daily requirement on LNG carriers. Previous generations of ships disposed of excessive BOG in gas combustion units, where the natural

gas is combusted rather than being released into the atmosphere. Nevertheless, natural gas combustion is still a source of carbon dioxide (CO 2 ) emissions, and, unlike combustion on propulsion or generator machinery, pure combustion is a waste of both valuable cargo and pure energy without any returns.

As a result of this, all modern LNG carriers being designed today are fitted with BOG management systems. These enable safe handling of unused or excessive BOG to maintain safe pressure levels in the cargo tanks, while also serving the cargo owner’s interest by minimising valuable cargo and energy-losses throughout the voyage.

BOG reliquefaction

Managing BOG onboard ships can be achieved by different technologies or methods, which are typically based on the specific design of the vessel. However, the preferred technology is often a direct BOG reliquefaction system, since this can recapture BOG in a more controlled manner than the alternatives. BOG reliquefaction also enables synergistic effects with the onboard machinery, as the core principle is the removal of BOG from the cargo tanks through compression by existing LD compressors. These compressors are already being used as fuel compressors, thus there is no need for additional machinery to operate the system. This treatment also enables a steadier and more controlled vapour space, as the process does not increase the risk of additional vapour generation caused by introducing new variables that can change the dynamics within the cargo tank. It also prevents the accumulation of non-condensable components to form pockets in the vapour space. This is a common challenge with comparable technologies, leading to unmanageable pressure increases or derated operation of other machinery.

Downstream of the LD compressors, the compressed BOG is treated by the reliquefaction plant by being recondensed back to a liquid state before it is returned to the tank bottom. This allows the entire composition of cargo to be properly mixed. It also utilises all the cold energy present in the liquid stored in the cargo tanks to achieve a uniform and stable distribution of the LNG.

A direct BOG reliquefaction system also works independently of filling levels in the cargo tanks, making it the optimal system during both laden and ballast voyages. This is because the vapour management and the effect it has on the dynamics of the cargo tank, is not affected at lower filling levels, thereby ensuring predictable performance during all the different phases of the vessel trade.

Despite its critical functionality to maintain a safe and cost-efficient trade, the cooling and liquefaction of natural gas is traditionally an energy-demanding process, and therefore a large contributor to the overall energy consumption of the ship. The combination of being able to meet more stringent requirements for a greener and more environmentally friendly trading profile, and technological developments that address both maintaining a safe and carefree operation for the

Figure 1. The newest reliquefaction modules by WGS are robust, easy to operate and provide unmatched efficiency.

Figure 2. The global LNG carrier fleet is continously renewing itself and looking for the most energy-efficient solutions.

crew onboard, while at the same time reducing energy consumption, has obvious attraction.

A real-life voyage from operational experience to the development of new technology

With more than 60 years in designing cargo handling systems onboard gas carriers, and more than 20 years of design and operational experience of LNG BOG reliquefaction systems, Wärtsilä Gas Solutions (WGS) is specifically geared to take on the challenge of developing an efficient and reliable reliquefaction system suited for the most modern and state-of-the-art LNG carriers.

Relying on design and operational experience from a wide range of technologies and capacities, WGS has drawn from its experience with the reversed Brayton cycle, the most robust and reliable refrigeration technology. Previous system designs were picked apart, evaluated piece-by-piece, and ultimately put together in a new and improved product portfolio, the Compact Reliq TM

The main features of the Compact Reliq are that it relies on pure commercial grade nitrogen as the refrigerant. Nitrogen has the advantage of being an inert gas, making it easy to handle, transport, refill and store onboard the vessel. This makes it safe for the crew and easily available as a consumable for re-stocking. Nitrogen is also a cryogenic gas, which makes it an optimal refrigerant, since the process does not rely on phase change. It is therefore more versatile, flexible, and robust during operation compared to other refrigerants that rely on phase-change for efficiency, which greatly narrows the operational flexibility.

The Compact Reliq also features state-of-the-art technology, with conventional bearings being replaced with active magnetic bearings. This technology prevents excessive vibration and significantly reduces wear, tear and replacement intervals, as the rotation is contactless, which also keeps lifecycle costs to a minimum. In addition, all stages of the compression and expansion are placed on a single shaft, thus eliminating several components and functionalities that have proven to require frequent maintenance on previous systems.

The rotating equipment is also fitted with variable speed drives. Combined with the high-speed rotation achieved by the active magnetic bearings, turn-down of the system is easily achieved without compromising the efficiency of the system. Such a functionality is seldom applied on other BOG management systems, but it offers greater operational flexibility. The system can be adjusted to the actual loads required during different scenarios with regards to overall fuel consumption and environmental conditions, whereas conventional systems have a limited capacity adjustment functionality.

As the overall concept is still BOG reliquefaction technology, the core of the process is still based on integration with the existing LD compressors for minimum interference and design changes to the remaining ship design. The integration itself, however, has now been elevated to a new level, drawing on a patented technological concept by WGS, where the system design can take advantage of the cold energy available in the BOG. Conventional integration with existing LD

compressors leads to the cold energy stored in the BOG being rejected to the vessel’s central cooling water system, and thus the potential is wasted. The enhanced integration that can be applied in the Compact Reliq takes advantages of the cold energy in the BOG by absorbing it into a purpose-made thermal liquid able to withstand cryogenic temperatures by preheating the BOG prior to compression. This liquid is then returned to the refrigeration plant to contribute to the reliquefaction process, resulting in the beneficial combination of increased capacity and reduced energy consumption.

Without this particular feature, conventional BOG management technologies operate with a specific efficiency of around 0.9 – 1 kg/kWh, while the Compact Reliq can operate at a specific efficiency of abt 0.6 kg/kWh. For a normal LNG carrier this can trigger savings of up to 500 kWh, while specifically designed vessels can gain a saving of up to 900 kWh. Based on the operating profile of the vessels, energy savings of this scale will enable direct cost savings for owners, operators and charterers of up to several hundred thousand US Dollars every year. In addition to the immediate cost savings that can be harvested from simply using less fuel, reductions in fuel consumption also result in a significant reduction of CO2 emissions, which have a direct impact on the EEXI and CII ratings of the ships. EEXI and CII ratings are seen as one of the most important parameters in evaluating a vessel’s competitiveness and compliance today.

Looking to the future

Looking at the demands from virtually all industry stakeholders today, the top priority is to reduce emissions and achieve more environmental voyage profiles. WGS is committed to contributing to these critical targets. By developing a robust and reliable reliquefaction system that is smoothly integrated with existing designs without the need for additional equipment, safety and reliability throughout the trade is ensured. In addition to achieving a level of efficiency that has previously not been seen on these applications, it is also designed in a compact and robust way with a minimised footprint to ensure trouble-free integration and installation. It is not only easy to install on a newbuild vessel, but is also well suited for retrofitting on existing vessels. By elevating the environmental profile of the current fleet, it ensures that older vessels can be operated for years to come, which is an obvious advantage. The Compact Reliq is, therefore, considered to be the optimal and most fit-for-purpose reliquefaction configuration for both the existing and next generation modern LNG carriers. It ensures that the global fleet is fitted with the most advanced and environmentally-friendly technology available.

To date, the company has secured deliveries of the Compact Reliq technology to 20 top-modern and state-of-the-art LNG carriers, where some have already been in operation for more than a year. With an exciting demand outlook for LNG carriers in the years to come, combined with the need to reduce emissions throughout the current value chain, it is believed that this is only the start of the journey towards increased efficiency and flexibility for cargo operations and BOG management onboard LNG carriers.

CHINA

15FACTS

Most of China’s LNG imports in 2023 came from Qatar, Australia, and Malaysia

China is expected to see a 5% rise in LNG demand for 2024

China is expected to account for approximately 35% of Asia’s total regasification capacity additions by 2027

China has the most international borders, neighbouring 14 countries: Afghanistan, Bhutan, India, Kazakhstan, Kyrgyzstan, Laos, Mongolia, Myanmar, Nepal, North Korea, Pakistan, Russia, Tajikistan, and Vietnam

China alone will add over 50 million tpy of regasification capacity in 2024

China is now the second-largest re-exporter, after Spain

Chinese New Year celebrations last for 15 days

The mortar used to bind the Great Wall’s stones was made with sticky rice

Zhoushan II terminal will be the largest contributor to China’s regasification capacity addition by 2027, and is anticipated to begin operations in 2025 with a capacity of 292 billion ft3

Chinese brides wear red instead of white; red is considered to be a lucky colour

China has the highest number of UNESCO sites in the world

The Forbidden City in Beijing has 9000 rooms in total

China imported 8.2 million t of LNG in December 2023, the highest since January 2021 (Kpler)

The Yangtze River is the longest river in China, and the continent of Asia

Chopsticks were originally used for cooking, not eating