LNG Industry February 2022

February 2022

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ISSN 1747-1826

CONTENTS 03 Comment 05 Guest comment 06 LNG news

FEBRUARY 2022

24 A dynamic metering philosophy

Mike Shepherd, Alderley, UK, explains the advantages of dynamic measurement systems for LNG automation and control, and how they can open up new opportunities in today’s digital age.

29 One core logistics centre

Jani Hautaluoma, Valmet, Finland, describes how innovative technologies can make small scale virtual pipelines a profitable reality.

10 Regions on the rise

Nina Howell (Partner), Ro Lazarovitch (Partner), and Adam Quigley (Associate), Bracewell, UK, consider some of the characteristics of Europe’s LNG sub-regions and the role of LNG in the Mediterranean.

32 Perks of picking the right material Barinder J S Ghai, Sandvik Materials Technology, UK, details a material improvement in extending the life of LNG vaporisers.

37 A cool recovery

Tobias Häggblom, Frans Launonen, and Lauri Bastman, Vahterus, Finland, explore the opportunities LNG regasification presents to improve energy efficiency through recovering the energy available in cold LNG.

40 The journey to carbon-free shipping

The world needs more energy but with fewer emissions. Jesper Rosenkrans, TotalEnergies Marine Fuels, Singapore, reveals how shipping is reinventing itself and why LNG is the first step on the journey to cleaner and lowercarbon marine fuels.

10 15 A break-bulk breakthrough

Gediminas Jotauta, Eimutis Gandramavičius, and Martynas Tamošaitis, AB Klaipėdos nafta, Lithuania, discuss the lessons learned regarding FSRU break-bulking and the preparation required to introduce this service into terminal operations.

20 Keep calm and carry LNG

Dalibor Ivanisevic, STS Marine Solutions, Croatia, discusses the choice of small scale LNG and how different ship types can deliver whilst keeping OPEX down.

45 Seaborne LNG: the voyage continues

Carlos Guerrero Pozuelo, Bureau Veritas Marine & Offshore, France, reflects on the support for seaborne LNG and the innovation that continues to characterise the company’s growth.

48 15 facts on... Europe and the Mediterranean

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LYDIA WOELLWARTH EDITOR

COMMENT W

hen considering gas trends for the year ahead, an abundance of factors come into play, and a recent report by Wood Mackenzie illustrates this.1 One rather large consideration is the commissioning of Nord Stream 2 – the controversial energy project that has been causing a stir for its environmental and political implications across Europe and the global gas market. Whilst construction of Nord Stream 2 was wrapped up in 2021, no gas has so far flowed through the US$11 billion pipeline, for reasons of compliance issues and legal grievances. This project is major for the gas industry because it is designed to double the quantity of natural gas arriving in Germany from Russia, to a figure of nearly 55 billion m3/y. However, its power is now going beyond the gas industry and into the political and military arenas.

The mounting tensions in recent weeks between Russia and Ukraine are turning Nord Stream 2 into somewhat of a geopolitical lever. Russia has recently amassed 100 000 troops on the country’s border with Ukraine, and Nord Stream 2 has been a focus of deliberations on implementing sanctions on Russia if an invasion of Ukraine were to take place. The US has threatened to freeze the opening of the pipeline, whilst Germany has suggested it would impose sanctions on Russia. Essentially, threats of conflict are being met with threats to energy supply, and given the astronomical cost of cancelling Nord Stream 2, this is a threat not to be ignored.

If sanctions on Russia were to be implemented, there is a fear over gas supplies to Europe, since Russian pipeline gas supplies are hugely relied upon on the continent.

Ensuring sufficient supply to Europe could be problematic and LNG would need to step up its role, however there is not enough LNG import capacity to entirely replace Russian

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pipeline gas supplies, so there is a big dilemma here. In fact, even Australia – one of the world’s largest LNG exporters – has pledged that it would come to the assistance of Europe if a shortage of gas was to occur in the wake of a Russia-Ukraine conflict.

The hope is that the kick-off of Nord Stream 2’s operations will push gas prices down, however, the current uncertainty surrounding this date, with rumours of late 2022 circling (or no foreseeable date if Russia invades Ukraine), may see prices increase. This is concerning for gas supplies because the commissioning of the project may be the only available option to recover European gas storage inventories and prevent replicating the winter 2020/2021 energy crisis where gas storage facilities nearly ran dry.

Due to the dramas surrounding Nord Stream 2, Wood Mackenzie predicts 2022 will be an unsettled time in the global gas and LNG industry, but there are numerous other trends also anticipated this year. The report outlines how there is positive support behind new LNG projects, with 79 million tpy of additional LNG to take Final Investment Decision (FID) in the next few years. Additionally, there is detail on how global gas demand will remain robust in the short-term, largely due to its role in the energy transition, however looking further into the future this role will likely waver as gas prices remain high and other energies are comparatively more appealing.

The implications and longer-term concerns for European gas supply if Nord Stream 2 were to be halted are complex and widespread, but we shall watch this space to see whether Russia’s President Putin sends his troops into Ukraine or if they are just on a training exercise in a politically-antagonising location.

1.

‘Global Gas and LNG – 6 things to watch for in 2022’, Wood Mackenzie, (January 2022).

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COMMENT VINCENT DEMOURY GENERAL DELEGATE AT GIIGNL

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s fossil energies are facing headwinds with the rise of renewables, mounting decarbonisation requirements, and the multiplication of net zero pledges, the phenomenon of carbon neutral energy transactions is emerging, i.e. transactions in which residual greenhouse gas (GHG) emissions associated with the product are offset through the purchase of carbon credits. In particular, carbon neutral LNG trade has gained traction since 2019. As of today, we know that approximately 30 carbon neutral LNG transactions have been performed, the vast majority of which in 2021. The cargoes were primarily delivered to Asian markets, in particular to China and Japan.

Nevertheless, in 2021 carbon neutral LNG transactions still represented less than 1% of total annual LNG trade.

When looking into these transactions, GIIGNL realised that there were some inherent challenges to be solved.

The first challenge was to ensure that the GHG footprint of an LNG cargo was accurately and transparently calculated, based on homogeneous monitoring, reporting, and verification (MRV) principles. The second challenge related to the fact that LNG players had taken different approaches to carbon neutrality claims, leading to: a lack of consistency in the definition of carbon neutral LNG, notably due to a lack of homogeneity regarding the stages of the chain that were offset. Whereas most of the carbon neutral transactions did offset the full life cycle GHG emissions, some players who claimed to offer carbon neutral LNG did only offset a limited portion of the chain. GIIGNL also observed a lack of consistency and credibility in the characteristics and the quality of the carbon credits used.

Given this context, GIIGNL decided that it was high time to lead a collaborative industry effort to try to set a common ground for what, until then, had been commonly referred to as carbon neutral LNG. To this effect, 50 experts representing 20 GIIGNL member companies and co-ordinated by a sustainability consultant, have been working to develop the ‘GIIGNL MRV and GHG Neutral Framework’ which was launched on 17 November 2021.

The GIIGNL MRV and GHG Neutral Framework aims to bring more transparency when accounting for and reducing GHG emissions associated with an LNG cargo, and promotes that emissions are avoided and reduced where possible. The offsetting mechanism is foreseen as a means to compensate for residual emissions that cannot otherwise be reduced or

avoided.

The Framework does not seek to replace any established standards and methodologies for GHG emissions calculation, footprint determination, and offsetting. It has therefore been framed in a way that integrates established internationally agreed standards and methodologies and provides additional criteria for assessing and reporting GHG emissions associated with the specific case of an LNG cargo.

Unlike other MRV quantification methodologies or certification schemes, what is unique about the GIIGNL MRV and GHG Neutral Framework is that it considers the whole value chain, down to end use, in line with the most restrictive, up-to-date carbon footprint and carbon neutrality standards, such as the GHG Protocol and PAS2060 from the British Standards Institution. In this regard, it promotes verified and consistent quantification of GHG emissions across all segments of the LNG chain, from extraction of natural gas, liquefaction, shipping, and regasification to final consumption, and creates a transparent practice to declare GHG neutral cargoes through an independently verified Cargo Statement which includes reporting of both emissions and offsets.

To bring some clarity and homogeneity into the market, according to the Framework a ‘GHG neutral LNG cargo’ represents a full life cycle GHG footprint across the entire cargo value chain, based as much as possible on primary data, and supported by a long-term decarbonisation commitment, a delivered emission reduction plan, and fully netted with high quality offsets. However, given that there is still demand in the market for a partial life cycle footprint which will take from production through to either delivery or regasification, the Framework supports a number of other declarations to accommodate the various levels of readiness and commercial expectations within the LNG sector.

Finally, and in view of the LNG industry’s commitment to reduce methane emissions, another outstanding characteristic of the Framework is that it requires full accounting for methane emissions in addition to carbon dioxide and other applicable GHGs. GIIGNL hopes that the Framework will serve the industry to drive further transparency and reduction of GHG emissions across the LNG chain and calls for early adoption of the Framework by LNG players across the different stages of the chain in an effort to promote LNG’s essential role in the energy transition and beyond.

February 2022

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LNGNEWS Qatar China

Avenir LNG and SSES ink bunkering agreement

Nakilat takes delivery and management of fourth LNG carrier new-build

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venir LNG Ltd has announced that it has entered into a long-term joint co-operation agreement (JCA) with Shanghai SIPG Energy Service Co. Ltd (SSES), a Chinese joint venture between Shanghai International Port Group (SIPG) and Shenergy Group which is responsible in delivering LNG bunker to CMA CGM’s containerships on behalf of SIPG. Under the JCA, Avenir will be responsible for the global marketing of LNG bunkering services in Shanghai Port as well as support SSES with operational and technical services to ensure seamless LNG bunkering operations for the CMA CGM containerships and future customers.

This important milestone expands Avenir’s bunkering network into the rapidly growing Chinese market adding another hub to its existing bunkering network in the Mediterranean, North West Europe, and Malaysia.

In support of establishing Shanghai as a leading LNG bunkering hub, Avenir sold its first new-build 20 000 m3 Avenir Allegiance to SSES. The vessel sale released significant cash back to Avenir. The proceeds will be used to enhance Avenir’s working capital position and fund future growth opportunities.

Peter Mackey, CEO of Avenir LNG, said: “We are thrilled to play an important role in establishing and promoting China’s first LNG bunkering hub in Shanghai. This deal marks another major achievement in Avenir’s development as we continue to expand our LNG bunkering network globally. We look forward to expanding our long-term relationship with SIPG, Shenergy, and CMA CGM.”

akilat has taken delivery of a new-build LNG carrier, Global Sealine, which will be commercially and technically managed in-house by Nakilat Shipping Qatar Ltd (NSQL). Built by Daewoo Shipbuilding & Marine Engineering (DSME) in South Korea, this is the final LNG new-build carrier to be delivered to Global Shipping Co. Ltd, a joint venture between Nakilat (60%) and Maran Ventures Inc. (Maran Ventures) (40%). Three of its sister vessels were delivered between 2020 - 2021 and are all under time charters.

With a cargo carrying capacity of 174 000 m3, Global Sealine is the second vessel with an X-DF propulsion system to join the Nakilat fleet and is chartered to Cheniere Marketing International LLP. Nakilat’s CEO Eng. Abdullah Al Sulaiti said: “Nakilat is committed to its environmental goals and supporting the International Maritime Organization’s (IMO) carbon intensity reduction targets to reduce carbon emissions by 2030. The addition of this vessel to our fleet allows the company to offer greater operational flexibility to our charterers as the X-DF engine propulsion is proven to be more fuel efficient and more environmentally friendly due to the lower carbon emissions.

Moreover, the vessel features significantly lower gas boil-off rate, is equipped with onboard reliquefaction units, and complies with all mandatory international and national regulations pertaining to environmental protection.”

The delivery of this vessel brings Nakilat’s fleet to 74 vessels.

To date, there are 25 LNG carriers, four LPG carriers, and one FSRU vessel being managed and operated in-house by NSQL.

USA

Woodside signs HOA with Commonwealth LNG

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oodside Energy Trading Singapore Pte Ltd (Woodside) has signed a heads of agreement (HOA) with Commonwealth LNG to negotiate a sale and purchase agreement for the supply of LNG from the proposed Commonwealth LNG development in Cameron, Louisiana, US. The HOA contemplates the purchase by Woodside of 2 million tpy of LNG over a period of 20 years, scheduled to begin in 2Q26. Woodside’s offtake obligation can be reduced or even eliminated as Commonwealth achieves increasing thresholds of offtake commitments from other buyers.

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February 2022

Woodside would also have an option to purchase an additional 0.5 million tpy of LNG. Woodside CEO Meg O’Neill said she was pleased to sign the HOA with Commonwealth, which shared Woodside’s commitment to cost-effective and optimised solutions for LNG customers in an evolving global market.

The HOA is non-binding and also conditional upon the negotiation and execution of a fully termed LNG Sales and Purchase Agreement, all necessary approvals being obtained, and a Final Investment Decision (FID) on the proposed Commonwealth LNG development.

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LNGNEWS Australia Europe

Brittany Ferries LNGfuelled cruise ferry receives classification

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ureau Veritas (BV) has taken delivery into class the brand-new cruise ferry Salamanca, built at China Merchants Jinling in Weihai, China. Powered by natural gas, the 1015-passenger ferry will be operated by Brittany Ferries on its route between Portsmouth, UK, and Bilbao and Santander, Northern Spain.

The Salamanca is the second ‘E-Flexer’ to enter service with Brittany Ferries as part of its commitment to introduce cleaner and more efficient ships to its fleet in the next five years. After its sister ship, Galicia, joined the fleet in December 2020, Salamanca will enter service in March 2022 and will be the first to be fuelled by LNG. With a length of 214.5 m, Salamanca has been designed with efficiency and the environment in mind. The vessel is equipped with twin Wärtsilä 12V46DF (dual-fuelled) engines, each generating 13 740 kW. Using LNG as a fuel will significantly improve air quality, by virtually eliminating NOx and particulate matter and reducing CO2 emissions.

Furthermore, particular attention has been given to its fuel-efficient design, with its long, slender hull and bow, and fine lines delivering excellent seakeeping in all weathers.

The ferry will be supplied with LNG in the ports of Bilbao and Santander, enabling round trips between Spain and Portsmouth.

Brittany Ferries plans to deploy three more LNG-fuelled vessels in the coming years: Santoña will join the fleet in 2023 on the Portsmouth-Santander-Bilbao route, and two hybrid LNG-electric ships will enter service between France and the UK in time for the 2025 season.

Arnaud Le Poulichet, Technical Director at Brittany Ferries, said: “Renewing our fleet stands as one of the pillars of Brittany Ferries’ recovery from the COVID-19 pandemic.

It goes hand-in-hand with sustainability, and will see the introduction of a range of cleaner vessels that will enable us to reduce our environmental footprint and deliver on our sustainability targets. Since we embarked on LNG ship projects back in 2012, BV has been by our side, listening and working with us to find technical solutions for the operation of our LNG ferries, as well as for LNG bunkering. Spanning over 40 years, our successful partnership with BV is based on mutual trust, and we look forward to our continued work together.”

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February 2022

Saipem awarded contract for Scarborough project

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aipem has received the Notice to Proceed (NTP) from Woodside, as operator for and on behalf of the Scarborough joint venture (JV), for a contract related to the Scarborough project. Saipem will complete the export trunkline coating and installation of the pipeline that will connect the Scarborough gas field with the onshore plant.

The Scarborough gas resource is located in the Carnarvon Basin, offshore Western Australia, and it will be developed through new offshore facilities connected by an approximately 430 km export trunkline with a 36/32 in. dia. to a second LNG train (Pluto Train 2) at the existing Pluto LNG onshore facility. The development will be among the lowest carbon intensity sources of LNG globally. The first cargo is expected to be delivered in 2026.

The work assigned to Saipem is relevant to coating, transportation, and installation of the trunkline, at a maximum water depth of 1400 m, including the fabrication and installation of the line structures and of the pipeline end termination in 950 m water depth. Offshore operations are planned to start in mid-2023 and will be mainly conducted by the Castorone vessel.

The Scarborough JV comprises Woodside Energy Scarborough Pty Ltd (73.5%) and BHP Petroleum (Australia) Pty Ltd (26.5%). Woodside and BHP announced in 2021 that FID had been made by the Scarborough JV to proceed with the Scarborough project.

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LNGNEWS France

South Korea

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TotalEnergies launches ship-to-containership LNG bunkering operation otalEnergies and its partner CMA CGM, have launched Marseilles’ inaugural ship-to-containership LNG bunkering operation in the Port of Marseille Fos, Southern France.

CMA CGM BALI, a 15 000 TEU LNG-powered containership is deployed on the MEX 1 service, connecting Asia and South Europe. The vessel has been refuelled by TotalEnergies’ Gas Vitality, the first LNG bunker vessel based in France, with approximately 6000 m3 of LNG, by means of a ship-to-ship transfer alongside the Eurofos container terminal, while the containership carried out cargo operations simultaneously.

The Gas Vitality is TotalEnergies' second chartered LNG bunker vessel and owned by Mitsui O.S.K. Lines, Ltd (MOL).

This entire operation underlines a solid collaborative teamwork across the French maritime industry including the involvement of local port authorities to enable the vessels’ safe operatorship, and the commitments of all the parties to support the growing role of LNG in the shipping industry's energy transition.

“TotalEnergies is delighted to successfully complete Marseille’s first LNG bunkering operation of a containership via the Gas Vitality. Her deployment underscores the company’s commitment to support the French port’s ambition to be an LNG bunkering hub for the Mediterranean region,” said Jérôme Leprince-Ringuet, Vice-President Marine Fuels at TotalEnergies. “This landmark operation also demonstrates our continued support to the growing role of LNG in shipping’s energy transition.”

Wärtsilä power solutions to drive new Arctic shuttle tankers ärtsilä will supply the main and harbour engines for a series of seven new Arctic shuttle tanker vessels being built at the Samsung Heavy Industries (SHI) yard in South Korea. The order, which is valued at more than €100 million, was placed with Wärtsilä in December 2021.

The vessels will each feature six Wärtsilä 31DF dual-fuel main engines operating primarily on LNG fuel, and two Wärtsilä 20 harbour engines. All will be fitted with selective catalytic reduction systems for emissions abatement. By selecting Wärtsilä as the sole supplier for this large scope package, system compatibility and procurement interfacing is simplified, which in turn eases installation work and reduces project risk.

“The Wärtsilä 31 series of engines has set a benchmark in efficiency for the industry. The diesel version has been recognised

by Guinness World Records as the world’s most efficient four-stroke diesel engine, and all versions of the Wärtsilä 31 engine series have the same high focus on efficiency. This is important for vessels such as these operating in Arctic waters, where operational reliability and environmental sustainability are of critical importance,” says Östen Lindell, Sales Director East Asia & China, Wärtsilä Marine Power.

The 120 000 DWT vessels are Arc 7 classified and have icebreaking capability. The Wärtsilä engines are designed to operate reliably at temperatures as low as -45˚C. SHI has considerable experience in building ships of this type.

The Wärtsilä equipment is scheduled for delivery to the yard commencing in 4Q22, and the ships are expected to be ready for commissioning between 2024 and 2027.

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February 2022

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Nina Howell (Partner), Ro Lazarovitch (Partner), and Adam Quigley (Associate), Bracewell, UK, consider some of the characteristics of Europe’s LNG sub-regions and the role of LNG in the Mediterranean.

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urope (both Continental Europe and the UK) is generally characterised as a single large LNG import market, and one in which European importing countries collectively compete with the world’s top importing region of Asia. Whilst Europe’s importing nations do share many common characteristics (e.g. most European regasification capacity is onshore) and trends, there are nonetheless a number of regional differences within the wider European LNG regasification market. Not only does LNG play different roles and have differing strategic

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importance across Europe’s importing countries, but market and regulatory dynamics vary across sub-regions and countries. Furthermore, the sources of gas supply (LNG vs pipeline and domestic vs import) and connectivity to other gas markets varies across the wider region and between individual countries. Overall, the European LNG market is diverse and has adapted to be fit-for-purpose in distinct sub-regions and individual countries.

The sub-regions and hubs within the European LNG market are broadly North-West Europe (including the UK),

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Southern Europe, and the (European) East Mediterranean, with smaller distinct markets in North-Eastern Europe and the Baltic region. Separately there is a concept of a EuroMediterranean region which, in addition to the EU Member States and the UK, encompasses Turkey, Israel, and the North African LNG-producing Mediterranean nations.

This article considers some of the distinct characteristics of Europe’s LNG sub-regions, the role of LNG in the Mediterranean, and potential synergies across the EuroMediterranean region.

From North to South and in-between North-West Europe

The North-West Europe LNG sub-region (or ‘hub’) loosely covers the importing countries of the UK, Belgium, the Netherlands, and northern France. Germany is poised to become the next member of the North-West Europe LNG club due to the country’s phasing out of coal and lignitefuelled power production. The UK and France (after Spain) have the second and third largest regasification capacity in Europe, respectively.

North-West Europe boasts significant gas storage capacity and a highly developed and integrated pipeline network that allows regasified LNG that is imported into any of the North-West European LNG terminals to be supplied into a number of Northern and Central European countries, including landlocked Austria and Switzerland. North-West Europe has suffered the most from the rapid decline in natural gas production from the Netherlands (including the phase-out of production from Groningen, Western Europe’s largest gas field, which is scheduled to cease operations in mid-2022) and the UK North Sea. Whilst the roll out of renewable energy in North-West Europe, particularly offshore wind, is meeting some of the region’s electricity demand, gas remains a key fuel for the region and the decline of domestic production increases the region’s reliance on LNG and natural gas imports.

LNG demand in North-West Europe (in particular) is highly seasonable due to cold winters in the sub-region and prices typically spike over the winter months. The baskets of LNG spot prices for LNG sales into North-West Europe will typically have a Dutch (virtual) Title Transfer Facility (TTF) linked component. Whilst LNG sales into the UK’s three large scale LNG terminals are still often linked to the UK’s (virtual) National Balancing Point (NBP) prices, the TTF index is starting to prevail as the key price index for North-West Europe. North-West Europe’s extensive storage capacity allows LNG producers to unload and store cargoes in the region during periods when demand is weak (and prices are therefore lower) in the premium Asian market. However, North-West Europe entered into winter 2021/2022 with storage levels at approximately 70% of capacity (as of the beginning of December 2021) following an unusually cold autumn – levels which some say are worryingly low – as a result of the high price of buying LNG or gas to fill them.

The US was the biggest LNG supplier to the Netherlands in 2Q21 (56%), while Russian LNG accounted for most of Belgium’s imports (48%). France received approximately the same amount of LNG from the US and Russia in the same period (29% each), whilst Qatar accounted for 60% of the UK’s LNG imports.

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February 2022

Baltic Sea region

Further north, the Baltic Sea is an arm of the Atlantic Ocean, enclosed by Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Poland, Russia, and Sweden. Poland’s Świnoujście onshore LNG terminal and Lithuania’s Klaipėda FSRU both sit in North-East Europe and supply regasified LNG into Eastern Europe, diversifying gas supply to an area that has historically relied on Russian pipeline gas for 100% of its gas supply. Sweden and Finland currently only have small scale LNG markets. Kaliningrad, the Russian exclave on the Baltic Sea, also has an FSRU for receipt of Russian LNG. A number of large scale and small scale stand-alone or integrated LNG import projects are either proposed or under development in the eastern Baltic countries of Estonia and Latvia.

European Russia, along with Norway, are Europe’s only two LNG exporting countries. Whilst Norway is a large exporter of gas generally, only 5% of its exports are in the form of LNG. Norway’s LNG exports are from the Hammerfest LNG terminal, which liquefies gas produced from the Snøhvit field in the Barents Sea, within the Arctic Circle. The Hammerfest LNG terminal has been closed for repairs following a fire in September 2020 and is due to restart operations in 1Q22.

In 2Q21, US LNG met the majority of Lithuania’s (48%) and Poland’s (41%) LNG demand.

Southern Europe

Spain and Portugal and, in some contexts, Italy, make up the Southern Europe LNG sub-region. The Spanish and Portuguese gas networks are inter-connected but are not connected to the rest of Europe, largely due to the impracticalities of building gas pipeline infrastructure across the Pyrenees Mountains which sit between France and Spain. Instead, Spain and Portugal rely heavily on LNG and natural gas imports from Algeria. Regasified LNG is Portugal’s largest source of gas supply. The country purchases most of its LNG under long-term contracts, but it also depends on the LNG spot market to meet spikes in gas demand especially during winter, which has made Portugal extremely exposed to recent high global LNG spot prices. The separation of the Spanish, Portuguese, and Italian LNG markets from the rest of continental Europe creates flexibility in LNG pricing models.

The Punto di Scambio Virtuale (Virtual Trading Point) (PSV) is the main price indicator for LNG sales to Italy, and the Punto Virtual de Balance (PVB) has become the key indicator for LNG sales to Spain and Portugal, both of which have stayed higher than TTF prices throughout 2021. This enabled these Southern European countries to compete with typically higher Asian LNG spot prices over 2Q21 and 3Q21 when North-West European cargos were being redirected to Asia.

The US was the biggest supplier of LNG to Spain (22%) in 2Q21, with Nigeria meeting most of Portugal’s LNG demand (42%). Qatar was the biggest supplier to Italy in that period (54%).

The other LNG importing countries in Southern Europe are Croatia, Greece, Turkey (which straddles Europe and Asia), and the island of Malta which imports LNG for power generation only and still does not have its own gas pipeline network. Croatia’s Krk island FSRU is strategically located to supply gas into landlocked Eastern Europe which relies heavily on Russian pipeline gas. Cyprus will join the ranks of southern European LNG importers when its FSRU offshore Vasilikos comes into operation, scheduled for the end of

2022/early-mid 2023. The US provided the majority of LNG cargoes to Croatia (82%), Greece (55%), and Malta (50%) in 2Q21.

East Mediterranean

Situated at the nexus of Europe, Asia, and Africa, the Eastern Mediterranean region has considerable export optionality for its abundant untapped gas reserves. The East Mediterranean countries of Egypt, Israel, and Cyprus are gas-rich and determined to get their gas to market despite regional geopolitical considerations, high capital costs, and fluctuating global LNG and gas prices. The introduction of ambitious net zero policies in advanced markets has introduced a further challenge to developing major gas and LNG export projects in the region – particularly as Europe and Asia are target export markets for the Eastern Mediterranean region.

In Egypt, exports from the 5 million tpy Damietta LNG export plant resumed in 2021 after an almost nine-year shutdown. Damietta’s return to operations gives Egypt an additional export outlet, particularly for gas production from the Zohr field and gas imports from Israel’s Tamar and Leviathan fields which started in 2020 under the Egypt-Israel gas export agreement. Egypt’s other LNG export terminal – the 7.2 million tpy Idku terminal – ramped up loading of LNG cargoes over 2021 compared to 2020 rates due to higher LNG sport prices globally. Both Damietta and Idku have excess liquefaction capacity which could be utilised by gas produced in Israel and Cyprus.

The owners of the Tamar and Leviathan fields in Israel have considered proposals for offshore liquefaction (via an FLNG facility) for LNG exports at various times, but these proposals

have not become a reality. In October 2021, Israel announced that it is considering the construction of a new gas pipeline between Israel and Egypt to increase supplies of Israeli gas to Egypt by an additional 3 billion m3/y to 5 billion m3/y, some of which could be liquefied at Damietta and Idku.

When the Aphrodite gas field was discovered in the Eastern Mediterranean Sea, offshore Cyprus in 2011, Cyprus switched its plans to become an LNG importer to an LNG exporter. The estimated reserves were subsequently downgraded, making an LNG export project potentially commercially unviable. The Aphrodite partners are also considering developing a pipeline to supply gas from Aphrodite to Damietta and Idku for export as LNG, although issues of cross-border unitisation between the vast majority of the Aphrodite field located in Cyprus’ exclusive economic zone and a small part located in Israel’s exclusive economic zone may need to be resolved before production could commence from Aphrodite.

The actual construction of these pipelines between Israel and Cyprus on the one hand and Egypt on the other are dependent on both strategic alignment between the infrastructure owners and regional co-operation at a political level. This goes hand-in-hand with price-specific considerations.

It is unlikely that East Mediterranean LNG exports would be able to compete for supply to the premium Asian LNG market due to longer voyage times compared to LNG supplies from LNG export terminals closer to Asia. Consequently, it is likely that East Mediterranean LNG would be supplied into the European LNG market where delivered prices typically lag behind Asian delivered prices, or to the growing African LNG import market where there may be higher levels of political and credit risk.

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Gediminas Jotauta, Eimutis Gandramavičius, and Martynas Tamošaitis, AB Klaipėdos nafta, Lithuania, discuss the lessons learned regarding FSRU breakbulking and the preparation required to introduce this service into terminal operations.

O

ver the past several years, the LNG industry has seen a steady growth of FSRU-based LNG import terminals unlocking new markets. The primary regasification demand comes in various forms – ensuring security of gas supply, meeting the demand for gas to power, increasing market competition, or replacing depleting gas fields. Soon after commissioning an additional phenomenon is being witnessed. After a year or two of operations, operators begin to investigate the scope of expansion and seek to introduce an additional service – LNG break-bulking into smaller cargoes. This was first pioneered in 2017 at Klaipeda LNG terminal and later replicated in other FSRU-based LNG terminals across the globe. Even though at first glance this service might seem like a simple cargo reload operation, on the contrary it has many different layers and aspects which must be taken into account from commercial and technical standpoints, so that it can be seamlessly integrated into overall terminal operations. In this article, AB Klaipėdos nafta will take a closer look and touch on a few specific aspects that must be considered before introducing such a service into terminal operations.

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Safety first

Upon the introduction of a new service into the terminal, the following safety related tasks should be addressed: environmental impact assessment (EIA) including quantitative risk assessment (QRA), and corrections in spatial planning procedure. Also, a safety report (according to Seveso directive and/or other applicable requirements) including an emergency response plan with its scenarios should be updated.

Small scale LNG vessel mooring to the FSRU

Considering the size difference between the small scale LNG vessels and conventional FSRUs, there are at least several important aspects which should be accounted for when assessing the mooring system effectiveness between these two ships moored side-by-side. Firstly, it should be evaluated that freeboard of the small scale LNG vessel is sufficient to be used with available ship-to-ship (STS) fenders deployed on the FSRU as well as whether these fenders can be rearranged to fit with the flat body surface of the small scale LNG vessel. This might require new smaller fenders, otherwise it may result in the incompatibility of the two vessels and in the worst case, the possible rollover of the fender or a similar related incident during the operation. Secondly, due to the height differences between the fairleads of the two vessels, the vertical angle of the mooring lines might exceed industry recommendations, and there may be challenges to place the gangway, transfer the equipment, or connect cargo hoses. Last but not least, operational and permanence limits for small scale LNG vessels are likely to differ from those applicable for operations of large scale LNG carriers. Therefore, prior to commencing the LNG break-bulk operations, a prudent operator should run several distinct scenarios for dynamic mooring analyses for main sizes of the small scale LNG vessels which are expected to call at the terminal. This is especially important for ports which are susceptible to adverse metocean conditions or extreme weather phenomena.

Small scale LNG vessel manifold height vs flexible hose length

Size differences between the two vessels as well as the cargo transfer rate – which can be as much as 10 times lower compared to an STS operation between an FSRU and a conventional LNG carrier – requires an evaluation of cargo transfer equipment suitability.

For FSRUs that are equipped with MLAs for STS transfer, it is very likely that using the existing MLAs for LNG breakbulk operations will be limited by the operational envelope of the arms. The manifold height of small scale LNG vessels varies and is usually significantly lower than the standard FSRU manifold, thus the safe connection between the two is often unachievable.

FSRUs that are equipped with flexible composite hoses for STS transfer might face a similar issue, although in this case the main limiting factor may be the length of the hose – being either too short or too long may lead to incompatibility between the FSRU and small scale LNG vessel. Also, when evaluating the suitability of cargo transfer equipment and choosing the best option, it must be acknowledged that there are more aspects to be evaluated.

This includes which specific small scale LNG vessels are most likely to arrive for a cargo transfer and what their manifold arrangements, reception flow, and pressure design parameters are, whether the minimum bending radius will be maintained at times of connection, and whether both vessels are equipped with the required reducers.

After taking those variables into account there is a clearer picture about the potential solution – a new LNG hose which is either universal for large scale and small scale LNG operations or a new LNG hose that will be dedicated solely for the small scale operations. If the latter option is selected, then the hoses need to be swapped each time in between the receipt of cargo delivered by conventional LNG carriers and the arrival of a small scale LNG vessel for break-bulk operations. This may require additional manning on the FSRU for handling and bolting the hoses, as the minimum time required between two STS operations is likely to increase and there is a higher risk of the crane damaging the hose while manipulating it between the storage location and FSRU manifold.

From an operational perspective, having a single hose suitable for both large and small scale operations is more convenient, however the potential implications of a longer hose for large scale transfers should also be evaluated. For instance, upon emergency disconnection, a longer hose risks falling into the water which may lead to a number of safety and integrity issues. Furthermore, having a set-up with a longer hose may lead to lower transfer rates, resulting in extended laytime for standard STS operations due to exacerbated pressure losses within the LNG transfer system.

FSRU ESD C&E matrix

Figure 1. The first LNG break-bulking operation at the Klaipeda LNG terminal.

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Before commencing a cargo reload operation to a small scale LNG vessel, the existing set-up of an FSRU emergency shutdown system must be assessed with regards to compatibility for simultaneous operations of LNG reload and regasification. In some cases, a few minor adjustments on the FSRU’s integrated automation system may be required in order to allow safe and reliable simultaneous operations.

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LNG quality measurement

Accurately determining LNG quality at the time of LNG transfer is a key element for a successful commercial transaction. Quality measurement principles during a break-bulk operation may differ from a standard STS operation at an FSRU import terminal. Conventional cargoes frequently arrive from a single source and the quality of the liquid is normally consistent across all of the carrier’s tanks.

In comparison, LNG in FSRU cargo tanks ages differently depending on the cargo management and regasification profile, the time since last STS operation, etc.

The most reliable option to determine the quality of reloaded cargo is an ISO 8943 compliant LNG quality measurement system with online gas chromatograph and sample constant pressure floating piston (CP/FP) cylinders.

An online chromatograph enables quality measurement in real-time while usually three cylinders of gas are taken during a cargo transfer as back-up gas samples for each concerned party and can be used later for a laboratory analysis. However, before using this system for LNG breakbulk operations, it is important to confirm that it can be used with flow direction from an FSRU to an LNG carrier. In addition, it is also important to confirm that the pressure and flow parameters at the sampling point are achievable and stable during the whole cargo reload operation.

If a sampling system onboard an FSRU is unavailable, then the quality of reloaded bulk can be estimated by the third-party surveyor using an LNG ageing model, the latest regasified gas composition measured onboard the FSRU, or by a shore gas chromatograph. In case the latter option is exercised, it should be noted that running the recondenser onboard will normally increase the methane content within the send-out compared to actual bulk composition within the tanks and consequently, representative quality data will not be acquired.

Cargo transfer

One operational issue to consider is the pressure in the FSRU cargo tanks before the cargo transfer operation. The type of incoming small scale LNG vessel has to be taken into account, however it is a common requirement that the FSRU should have a specific lower pressure at its tanks before cargo operations. It is a good practice to consider and define pressures in cargo tanks of both the FSRU and small scale LNG vessel upon its arrival as well as maximum allowable operating pressure during the transfer operation – this is normally undertaken during the compatibility study.

Sometimes small scale LNG vessels arrive with warm cargo tanks and only small amounts of LNG remaining in the tanks, or even without any LNG cargo remaining. In such cases, an important aspect is that the BOG that they return is warm and at the same time accepting that such BOG to the FSRU tanks might compromise the temperature of the LNG in its tanks. Even if this is acceptable to the terminal user which requested the LNG break-bulking operation, this could also influence the temperature and composition of shared inventory when there is more than one user using the terminal.

An LNG terminal operator must therefore discuss with the FSRU operator and decide what amounts of BOG can be returned to the FSRU tanks and whether BOG should mostly be managed in the small scale LNG vessel.

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Fuel consumption and BOG

A TCP with an FSRU owner will usually include a contractual obligation for an FSRU to stay within a specific limit of fuel consumption and boil-off (LNG, BOG, and diesel) during terminal operations.

It is important to consider whether these limits shall remain in place when LNG break-bulk operations are added to the usual regasification service provision. It is also worth considering whether these limits are still applicable in cases where the FSRU has stopped send-out completely but is still performing LNG break-bulking operations. Such aspects should be explicitly defined in the TCP in order to have a full visibility of all costs and clear limits of responsibilities during the LNG break-bulk operation.

There can be an additional layer of complexity when an LNG terminal is simultaneously used by multiple terminal users and the operator of the terminal must assign amounts of fuel consumed and boil-off between multiple terminal users. It is an interesting challenge to design methodology to determine which part of fuel consumption was used for regasification purposes and which part was used to break-bulk LNG. The specific allocation algorithm at each terminal must provide tools for the operator to fairly assign fuel consumption and boil-off to the terminal users which are using different types of services.

Scheduling of LNG break-bulk operations

When an LNG break-bulking service is added to the overall offering for the terminal users, the operator will have to devise a priority system and scheduling rules for LNG cargo arrivals and LNG break-bulking operations. Typically, LNG break-bulking is considered only as an ancillary service and therefore the arrival windows for small scale LNG vessels would have lower priority than the LNG cargo delivery windows.

Frequency of operations and crew rest

FSRU crew rest requirements are an operational aspect which might have some contractual consequences. It is important to cover this aspect within the TCP/OSA so that the FSRU crew has no restriction to perform frequent reload/load operations.

Due to FSRU regasification limitations there will typically be at least several days between LNG cargo arrivals at the terminal. However, when LNG break-bulking operations are added as a service of the LNG terminal, the terminal users might want to book LNG break-bulk operations with little or no time before/after LNG cargo arrival. Therefore, the FSRU might need more crew to be able to perform operations with little time in between.

Timely identification and management of complex technical and commercial challenges as well as mitigation of risks arising from the introduction of an LNG break-bulking service at an FSRU-based LNG terminal is the key to success in achieving maximum value.

Early involvement of an experienced terminal operator when devising LNG break-bulking services is a reliable way to ensure safe and seamless integration into an overall terminal service offering.

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L

NG carriers have existed in the shipping industry for some 60 years. They go back to Methane Pioneer’s maiden voyage in 1959 as the first commercial seaborne LNG transport by a dedicated carrier.

Today’s world LNG fleet consists of approximately 572 LNG carriers in operation, with 130 units scheduled to be delivered in 2021, along with 37 FSRUs – as per the International Gas Union (IGU) World LNG Report 2021.

The LNG carriers usually operate in accordance with the long-term time charter party between the exploitation areas and final buyers and predetermined (un)loading terminals. The key factor for a successful and profitable project of LNG exploitation is planned and uninterrupted export of LNG, as well as its safe and reliable delivery to the buyers.

However, the LNG market has been changing in the last decade due to various reasons. It is the result of gas demands supported by large reserves and low prices of gas due to the increased supply competition.

Natural gas has become the third source of energy in the last decade, after oil and coal, and it is expected that it will become the second source of energy by 2025 (International Energy Outlook 2016). Approximately one third of natural gas has been shipped by LNG carriers as LNG. It is estimated that by 2035, the transport of LNG by sea will surpass the transport of gas by pipelines.

As per the IEA Outlook 2020, it is expected that LNG, the main driver of international gas trade, will increase by 21% between 2019 and 2025.

Together with the development of LNG and FSRU ships, a technology for safe, reliable, and efficient cargo loading, discharging, and ship-to-ship (STS) reloading has been developed. STS kit consisting of cargo flexible hoses, supporting equipment for emergency shut down (ESD), and emergency release and disconnection, has successfully complied with the administration’s

Dalibor Ivanisevic, STS Marine Solutions, Croatia, discusses the choice of small scale LNG and how different ship types can deliver whilst keeping OPEX down.

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Some of the main factors consistently influencing small scale LNG market growth include the following: zz Small market demand pockets (usually power plant and/ or industrial customers with less than 1 million tpy of aggregate demand). zz Substantial potential for LNG bunkering. zz Shallow water restrictions (usually less than 8 m). zz Countries with developed inland waterways.

Figure 1. Difference in CO2 emissions for different fossil fuels.

Figure 2. Number of ships built per year.

safe operation requirements, and it has been widely used for reloading LNG cargo in the recent past.

A good example of such a situation was a high frequency LNG transhipment project in Norway that involved simultaneous cargo transfer operations from Arctic-classed LNG tankers to conventional LNG tankers at the end of 2018 into 2019. It was carried out by STS Marine Solutions where 123 successful cargo transfers amounted to almost 10 million t of transferred LNG. Apart from cargo transfer operations between large conventional LNG carriers, LNG STS equipment has been used for required gassing-up operations onboard LNG vessels after a dry docking, offering economical and operational flexibility when compared to standard terminal operation. LNG STS kit is proven and reliable equipment, compact in dimensions, easily transported, and offers plug-in technology compatible with LNG carriers in service today.

LNG STS technology is essential for utilisation of small scale LNG carriers regardless of the primary usage of small scale LNG – which is bunkering LNG or delivering small parcels of LNG to the areas restricted by lack of infrastructure or water depth. It offers obvious advantages in comparison to fixed onshore terminal infrastructure particularly in respect to small parcels delivered by small scale LNG. Parallel with the growth of the world’s LNG carrier fleet and with the strong development of technology onboard LNG and FSRU carriers, a niche of small scale LNG carriers has been continuously increasing in number, amounting to approximately 87 units today.

The IGU criteria defines small scale LNG as any facility with a liquefaction and regasification capacity of 0.05 - 1.0 million tpy, and vessels with a capacity of 60 000 m3 or less. However, more than 90% of small scale LNG carriers are up to 30 000 m3 capacity.

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zz Archipelagos where development of pipeline infrastructure is infeasible.

By taking these factors into consideration as well as the LNG industry’s continuous effort to provide cost-effective solutions, it is fair to claim that there are two main drivers for developing and building small scale LNG carriers. The first one is the result of more stringent environmental regulations and limited CO2 emissions where LNG has become a frontrunner amongst marine fuels, and small scale LNG bunkering vessels are utilised to provide bunkering capacity for an increasing number of LNG powered ships.

In accordance with DNV GL, there were approximately 175 LNG-fuelled ships in service, with more than 200 on order in 2020.

When looking at differences in emissions for fossil fuels, it is easy to understand why LNG is becoming the first option for most of the shipowners and operators when trying to comply with environmental regulations.

The second driver for developing and building small scale LNG carriers is small scale LNG-to-power, i.e. taking small parcels of LNG from import terminals – a process known as break-bulk – and transporting them to areas unconnected to the gas grid, with no infrastructure for a standard LNG carrier. This enables customers and users in remote locations to obtain and use LNG as low emission fuel, avoiding construction of expensive or impractical infrastructure.

Small scale LNG carriers are successfully adding the following values: shallow draft accessibility, operational flexibility, shorter project lead-time in comparison to large LNG carriers, and smaller CAPEX on absolute level – although less economical in terms of cost per m3 of the vessel’s capacity.

Some limitation factors of small scale LNG carriers include: zz Distance between the source of LNG and small demand centre, where the economics of small scale LNG carriers rapidly deteriorates with increased distances. It is firmly determining utilisation of the small scale LNG carrier on short voyages and distances. zz Restricted market for re-deployment. Unlike large LNG carriers, small scale LNG carriers are generally deployed regionally and closely connected to a specific project.

This includes economically unviable shipping over long distances, some limitations on the compatibility globally, and undeveloped small scale LNG carrier markets across the globe. This limitation factor determines more market risk for small scale LNG carriers in comparison to conventional LNG carriers. zz Relative economic disadvantage when compared to conventional LNG carriers as mentioned above. By taking into consideration the almost equal amount of technology used onboard a small scale LNG carrier, which is similar to conventional LNG carriers, and the fact that most of

the small scale LNG carriers have been constructed using costlier Type C tanks for storage, it is obvious the cost does not fall proportionally with size. However, relative economic efficiency of small scale LNG carriers is improving as a result of the fact that LNG as a fuel is still very competitive.

Demand keeps growing

Despite the aforementioned limitations, demand for small scale LNG carriers has seen rapid growth in the 2010s, due to increased environmental regulations for cleaner fuel, availability of low-price LNG on the market, and continuous development of proven LNG technologies used onboard LNG carriers.

In the last six years, the small scale LNG fleet has almost doubled in number of ships in service (Figure 2).

It is important to emphasise the fact that the use of small scale LNG carriers for bunkering is regionally dependent and it advanced mostly in Europe and the US because of four emissions control areas (ECA) zones designated under Regulation 14 of MARPOL Annex VI with specific SOx requirements: North American, Caribbean, Baltic Sea, and North Sea. Additionally, a refuelling station that is supplied with small vessels is already operational in Singapore.

However, whilst LNG technology is already mature onboard LNG carriers, as per BV Marine and Offshore, small scale LNG carriers will bring a novel design in the market of LNG bunkering vessels trying to utilise modern technology with optimal solutions. Challenges such as the handling of boil-off gas (BOG) would require one of the few available technical solutions.

Reliquefaction of cargo vapours, withstanding higher pressure in the tanks by utilising thicker cargo walls, or liquid cargo cooling. Type C independent cargo tanks can withstand

higher tank pressures thus it is often a design option when constructing small scale LNG carriers. However, using a membrane tank concept offers flexibility in sizing the tank capacity, tailoring it as per customer requirements. It is a costlier technological solution with a limitation in narrow tank pressure tolerance. On the other side, construction of more robust, higher pressure allowing Type C tanks requires thicker tank walls resulting in heavier and costlier material for tank building.

Looking at LNG bunkering vessels, requirements for controlling BOG are different from the small scale LNG vessels delivering small parcels. It is fair to assume that a new solution might be introduced in attempt to reduce CAPEX and high relative cost per m3 of storage capacity of small scale LNG carriers.

Bearing in mind all parameters and economics, the market share of small scale LNG carriers is, nowadays, small when compared with the entire LNG industry; however, potential for strong growth in the future is obvious. In accordance with the IEEJ 2022 outlook, supply and consumption of natural gas is expected to increase globally, and utilising gas and LNG instead of petroleum fuels is considered the key role in decarbonising the shipping industry as well as road transport ashore.

Environmental demands and recent commitments of high CO2 emitting economies toward net zero emissions targets is giving a strong signal of an irreversible process globally, where it is expected that gas and LNG will replace a large number of coal-fired power plants and is significantly contributing to the reduction of CO2, NOx, and SOx emissions.

Combined with an increased number of LNG-powered vessels, it is fair to expect that small scale LNG carriers will become a growing part of the industry and will be followed by new technological solutions and vessel designs.

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Mike Shepherd, Alderley, UK, explains the advantages of dynamic measurement systems for LNG automation and control, and how they can open up new opportunities in today’s digital age.

L

NG has a critical role to play in today’s energy landscape and the transition to a lower carbon future.

This highly versatile and tried-and-tested fuel is relatively easy to transport on an international scale, is an energy dense hydrocarbon and, when compared with other hydrocarbon fuel sources, is clean-burning and low carbon emitting.

With these credentials LNG will remain a cornerstone fuel for decades to come, making it a very attractive transition fuel whilst even lower carbon-intensive energy solutions are developed.

Indeed, a recent Bloomberg report forecast that global LNG supply could reach 449 million t by 2025 – up 23% from 2020.1 The analysis references LNG project backfills or expansions that are sustaining output in

Australia, the Middle East, and Africa, with the US and Russia seen as key drivers for the growth. The US in particular could see its liquefaction capacity rise by more than half, overtaking Australia as the world’s largest exporter by 2024.

The need for effective measurement and control

In value terms, the Bloomberg report predicts that the global LNG market is expected to reach US$61.85 billion by 2026, at a compound annual growth rate of 6.92% during 2021 - 2026, with LNG predicted to be the fastest growing source of traded natural gas.

Evidently, with the volumes and values being traded, it is essential that the measurement of LNG is efficient, traceable, and accurate.

Figure 1. An Alderley dynamic metering system for LNG operations in Qatar.

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This is where the dynamic measurement of LNG, i.e. measurement of flowing LNG, comes to the fore.

A dynamic solution

Dynamic measurement of LNG utilises a fiscally accurate measurement system at a point where there is a transfer of custody of hydrocarbons between two parties, or where the potential for hydrocarbon losses is of a significantly impactful value. High precision flowmeters and instrumentation is needed to provide the mechanism for direct measurement of the products.

Two meter types are favoured for gas and LNG fiscal measurement: ultrasonic meters (USM) and Coriolis meters.

They both have their merits, with the line size USM essentially providing a volume flowrate whilst the Coriolis meter provides a mass flowrate. Both use sophisticated electronics and have extensive diagnostic capabilities.

Precision is inherent in a fiscal metering system: complex calculations are performed on the meters and flow computers to determine the correct production and transfer figures – essential for the management of any high-value media.

Each flow computer is configured to automatically perform metering calculations, monitoring, and control functions for each meter on its individual pipe stream. The flow computers retrieve data direct from field instruments, primarily the meter, pressure, and temperature instruments, and perform all the primary flow calculations to internationally agreed standardised parameters.

Based upon Alderley’s lengthy experience in LNG measurement and the recent improvements in fiscal LNG meters and sampling systems, dynamic measurement is the preferred method to optimise measurement performance and control.

Dynamic measurement also enables the opportunity for integrated automation and control, and forms the basis for digitally integrated solutions.

rapidly warmed to convert it into a representative gas sample to determine the quantities of methane, propane, butane, etc., so that an accurate energy or calorific value can be calculated.

Recent improvements on the design of specialised LNG sampling systems have overcome many of these issues.

However, the pursuit for LNG measurement performance encompasses more than the utilisation of high-precision instrumentation.

Taking into consideration the significant temperature challenges of transporting cryogenic LNG at approximately -162˚C in sometimes 50˚C+ environments, the key components for an effective dynamic measurement system are: zz Careful mechanical design. zz Appropriate isolation philosophies. zz Suitable instrumentation selection. zz Robust automation and control systems.

The value of automation

With the increasing emphasis on maximising value – achieved through enhancing efficiency/reducing costs – industries, including oil and gas, are increasingly turning to the automation of as many processes and procedures as possible.

Automation provides the opportunity for real-time performance and process monitoring for operators and technicians. This supports effective and efficient control through live monitoring of measurement and process events, better utilisation of resource through informed decision-making, and facilitates condition- and performance-based maintenance routines to ensure the optimum ongoing integrity and performance of their assets.

Much of the automation capability is managed by the supervisory computers. This provides a platform for integrating the communication interfaces; hosting the HMI, remote operated valves and controls interface via graphical representations of the metering package; various reporting systems; analytical packages such as condition-based Focusing on energy value management, instrument validation and calibration, and As the primary measurement unit for LNG is its energy value, maintenance management systems. confident analysis of the chemical properties of LNG is A typical dynamic LNG measurement system is shown in essential and is best undertaken using online automated gas Figure 2. It shows the fiscally measured raw feed gas coming chromatography techniques. into the LNG processing train, where the refrigeration and The primary purpose of the gas chromatograph is to processing is undertaken to chill the gas into LNG, before automatically calculate the calorific/energy value of the LNG progressing through to the storage tanks and ultimately as it is loaded onto the tanker. loading onto the tanker for international sale.

Online gas chromatography has been a challenge in the During this LNG process, there can be unquantified LNG industry as the super cooled liquefied gas needs to be hydrocarbon losses through flaring, the unmeasured consumption of gas for power generation, and general fugitive emission losses, etc. – losses that a proper integrated measurement philosophy, with its associated automation and control systems, can help to quantify and minimise.

Once the LNG production process is complete, the super chilled LNG is measured and stored in large, heavily insulated tanks. At this point there is inevitable warming of the LNG in the tanks and the consequential release of boil-off gas (BOG) which needs to be controlled and measured whilst it is recirculated into the process train for re-refrigeration.

Normally, the point of fiscal measurement is on the Figure 2. Representation of a dynamic LNG measurement system. pipelines from the tanks to the tanker loading system as

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historical information from the meter CBM and meter calibrations, an argument can be presented to the local authorities to allow extended periods between calibration – saving cost and time.

It is also possible to connect the LNG metering system to a dynamic, or ‘live’, uncertainty calculation which would automate the production of a system uncertainty for every load or unload.

Global access and control

Figure 3. Condition-based and measurement system

performance monitoring of an ultrasonic metering system.

this is where the effective custody transfer and ownership change takes place. During the loading process the tanker is chilled and filled, and the consequential BOG is recirculated back into the LNG train for refrigeration once again.

Throughout the loading process, automated sampling of the LNG will be conducted by online gas chromatography to measure the caloric value of the loaded LNG – calorific value being the primary method of selling a cargo.

Dynamic fiscal measurement of the loading LNG and BOG returns is automatically calculated to ensure that the final stored volumes are correct once loading is complete.

Condition-based management and dynamic uncertainty

To optimise the control of measurement processes, Alderley recommends the use of a condition-based monitoring system incorporating dynamic uncertainty for all gas, liquid, and LNG measurement systems.

Through continuous assessment of the metering systems, a bespoke condition-based monitoring (CBM) solution can provide the early detection of potential problems with these assets allowing appropriate control decisions to be made.

The availability of live information can also allow for the scheduling of maintenance exactly when it is needed, rather than using the industry norm of time-based maintenance, saving considerable costs in time and scheduling.

Alderley recommends a measurement CBM with clear ‘traffic light’ status indicators against each piece of equipment to support the early detection and prevention of potential faults, with built-in troubleshooting and deep-dive capabilities, including trend analysis and historian capabilities.

This helps to deliver assured performance of the metering system, ease of operation, and reduced operating costs throughout the life of the measurement asset, as well as the ability to provide prompt and effective remedial activity in the event of a fault.

For an LNG system, where pressure drop issues preclude the use of a master meter, the live CBM can also be used to automatically identify if a meter is drifting from its original calibration by comparing the meter in operation with its original calibration footprint. This can be used to provide the validation of accuracy of the loaded product. By collecting

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With the recent travel difficulties, especially internationally, there has been the need to remove barriers that keep critical plant data domiciled on industrial sites. This is because technical experts who would normally travel to these locations to check the quality of operations, diagnose problems, and provide solutions can no longer do so with the same frequency and ease.

To overcome these obstacles, and moreover to optimise operational performance and value, data must now be transmitted to remotely located stakeholders for review and action, and suppliers must now provide the technological services which facilitate these data transfers.

Alderley recommends solutions that harness industrial IoT technologies for securely transmitting business critical data from disparate industrial sites into corporate or Cloud-hosted databases. From these databases, stakeholders can be presented with live dashboards, charts, and reports showing the industrial system status and equipment performance.

Increasingly automated analytical tools are also being deployed to process this data to remotely manage and predict potential problems that might impact high-value commercial transactions such as automated and remote controlled routine system audits and calibrations.

A smart solution

Smart Asset Management from Alderley is one such solution.

It is an advanced, fully integrated, and fully supported IoT connectivity solution to ensure the ongoing performance of the most critical assets: measurement systems.

Combining the company’s industry knowledge of custody metering systems with the latest connected and Cloud platform technologies, Smart Asset Management transforms measurement data into remotely accessible insight with the flexibility, scalability, and control to manage all measurement assets.

Summary

Automation and control is a critical requirement to ensure safe operation and cost-effective systems.

In this case, a well-designed and plant-wide dynamic metering philosophy including appropriate information-based automation and control systems, as described for a modern LNG facility, can provide considerable cost-saving opportunities and easier operator interaction whilst also providing the backbone for the digitalisation of the information.

This is crucial for the modern operation of large facilities and will allow operators to benefit from the new age of digital integration and IoT technologies.

References 1.

Bloomberg, Global LNG market outlook 2021-25, (2021).

Jani Hautaluoma, Valmet, Finland, describes how innovative technologies can make small scale virtual pipelines a profitable reality.

A

lternative fuels that are becoming increasingly popular today, such as LNG and other methane-based renewable energy sources, typically require an organisation to have its own complete truck-based logistics system for transporting fuel, as gas pipelines do not connect all producers and end users. This is called a virtual pipeline that consists of CNG or LNG transported by truck, rail, or sea.

The virtual pipeline makes it possible to distribute gas to remote destinations cost effectively. The management of storage throughout the pipeline, both physical and virtual, is part of the concept.

Until today, managing this virtual pipeline has been highly complex. That is why such small scale supply chains for LNG or other alternative fuels have had difficulties being profitable. It requires greater efficiency throughout the entire supply chain and more accurate, real-time communication among multiple parties to ensure profitable business performance.

Building a bridge

Now Valmet is helping to provide a bridge between biogas production and efficient LNG distribution with its DNA Integrated Operations solution to make LNG even greener.

This solution has made profitable business a reality for small

scale virtual LNG and biogas pipelines, but Valmet is also in the process of expanding the offering for other renewable gases, including green hydrogen. This concept offers the flexibility needed for each virtual pipeline with its own complexity, while allowing customers to pursue their own long-term LNG strategy to increase sustainability within their business operations.

The solution combines innovative technologies to manage the entire logistics value chain of virtual pipelines. It increases the efficiency of logistics by making each action easier to track, adding value for all stakeholders involved. The control system is scalable and grows as the customer’s business evolves.

DNA Integrated Operations is a Cloud-based application developed to support energy transmission customers to manage their supply chains more efficiently. It works with the Valmet DNA Historian as a bridge between the production plant and the virtual pipeline. Historian plays a key role in collecting information for the virtual pipeline. Then DNA Integrated Operations has the expertise to pick the right information needed by the specific party in the supply chain.

The DNA Integrated Operations solution is built from various automation levels. Valmet’s distributed control system (DCS) is the base for all process control and information. Used

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in different types of processes often requiring a scalable multi-user environment, Valmet’s DCS gives complete control of all processes and provides user experience and transparency that goes far beyond traditional automation systems. Information management is an integrated part of the platform.

Valmet DNA Historian is a tool that collects all metering and process data, such as tank levels and temperature. It helps connect information on the history and analysis, so that everyone knows what is going on at any given time. With the help of Historian, the information collected becomes a valuable asset for the customer.

The top layer is the Valmet Industrial Internet (VII) solution, which connects terminal operators with terminal users and other stakeholders and offers limitless developmental possibilities for the entire alternative fuel ecosystem in the future. The VII combines advanced monitoring and prediction applications, advanced process controls (APCs), dynamic process simulators, and remote services from Valmet’s eight Performance Centres into comprehensive solutions. Using the capabilities of the VII, process operations can be optimised based on the vast amount of data gathered together.

How it works

Instead of having several points where all activities are documented, such as receiving LNG from the vessels, metering LNG, storing it, or putting it into tanks, now just one single system does it all. Most operations today have several programs collecting the data to manage all transactions. This

Figure 1. When visiting the terminal, drivers from transport companies load their trucks with LNG easily using Valmet’s Cloud-based DNA Integrated Operations and local DCS automation from loading panels.

Figure 2. In the control room service hatch, drivers receive automatically printed waybills.

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requires manual work to transfer the data from one system to another. It jeopardises the flow of information and increases the chance of mistakes.

In reality, the actual management work is transferred from the terminals or production plants to the terminal users and logistics companies. This creates a win-win situation. The terminal operators no longer need to be responsible for logistics planning and rather can focus on their core task of making terminal operations more efficient.

The terminal users and logistics companies, instead, can make decisions that affect their work, making operations more well timed for demand.

Throughout the entire supply chain, each party receives more accurate information. Truck drivers can pick up their loads or deliver them without wasting time waiting. All data entered into the system then automatically proceeds to speed up invoicing, making it more accurate and timelier.

One holistic view

Unlike other solutions on the market, DNA Integrated Operations runs in the Cloud and not as part of the terminal automation system. This enables the system to collect real-time information from several databases and use that data for energy and logistics planning. The user gets a single holistic view.

The Valmet DNA Integrated Operations automation and software application was created specifically from the bottom up to make LNG and biogas operations more efficient. The experts behind the solution have years of experience working in this specific area and have the knowledge regarding the challenges that automation can address. The multiple award-winning solution helps users better manage data, optimise sourcing, and plan logistics efficiently, thereby saving time and costs. The comprehensive software monitors and masters all the information between these parties with independent layers that are targeted to specific users.

A unique feature is that monitoring and logistics are seamlessly integrated together. There is no other tool available that can independently monitor both the loading points and the various end-point locations. The virtual pipeline then can take advantage of having all plant data and infrastructure data in one single place, building a single virtual pipeline view.

Another exclusive feature is forecasting. The system provides two forecasts as part of its functionality – one for the loading point and one for the end points. This gives valuable information on the energy, volumes, origins, and emissions that is needed to run a seamless business as well as is an authority requirement.

DNA Integrated Operations is the only solution available today that runs in the Cloud and not as part of the terminal’s automation system. In the Cloud, the relevant data can be easily shared between stakeholders in the supply chain.

For example, logistics companies can see the loading bookings and communicate among each other to find the most accurate timing for every loading. Loading permits are transferred from the Cloud of DNA Integrated Operations to an on-premises DCS. DNA Integrated Operations has been developed according to Valmet Automation’s certified ISASecure Security Development Lifecycle Assurance (SDLA) cybersecurity process. Additionally, a high level of

cybersecurity with Microsoft Azure ensures a safe way to transfer loading permits from the Cloud to the local Valmet DNA automation system to activate loadings.

L-SNG Clean water Renewable electricity

Green hydrogen / P2G production [UNDER DEVELOPMENT]

NG grid

Part of LBG / CBG logistics SNG

Grid injection

H2

Grid injection

Bio waste and other feedstock

Biogas production

Liquefaction and LBG storages Can be existing LNG terminal

Clean water

Green hydrogen [UNDER DEVELOPMENT]

Natural gas upstream processes

H2 fueling stations CBG CBG fueling stations

Grid injection

LBG/L-SNG import

Natural gas compressor stations

Process industry customer

CO2

LBG

Case study: Measuring results at Gasum

NG pipe

LBG fueling stations

LBG for transport

L-LCBG fueling stations

LBG/L-CNG for ships LBG

Grid injection

LBG for process industry Process industry

Industry customer

NG grid

CBG LBG L-SNG SNG H2 L-LCBG NG LNG

Compressed biogas Liquefied biogas Liquefied synthetic natural gas Synthetic natural gas Hydrogen LBG + CBG Natural gas Liquefied natural gas

customer Renewable DNA Integrated Operations has electricity Green hydrogen Hydrogen grid been used by Gasum Oy for gas Natural gas Solid material for batteries biogas truck transportation in Finland since 2018. For Gasum, Valmet’s offering is unique, as it is the Figure 3. Alternative fuel infrastructure roadmap. only one to monitor independent locations and loading points. more trucks can be served when they do not waste time Forecasting happens continuously to ensure enough fuel at all waiting. times and also to provide accurate information to the master This terminal is the first to reverse the supply chain. planners. Gasum uses one forecast for the loading points and Loadings do not wait for orders from the ERP system. Instead, another for the end points. they come directly from Valmet DNA Integrated Operations Valmet is the only supplier to be able to offer a holistic and proceed to the ERP. This has resulted in huge view, giving information about both the existing and future improvements in operational efficiency. Also, congestion peaks situation. This enables the entire supply chain to be more have been optimised. accurate and efficient, adding more revenue to the bottom Valmet’s service has already improved the terminal line. operations significantly. The fully automated Valmet DNA DCS A study has been carried out to analyse the operational terminal automation using the new VII application driven by data and determine how the efficiency of the overall supply DNA Integrated Operations is a modern way to put logistics chain has improved. Based on operational data, the gas companies, the terminal operator, and terminal users on the amount in the retrieved gas containers has significantly same platform. reduced from 7% in 2018 to 3% in 2020. The DNA Integrated The Valmet DNA Historian uses Valmet DNA Operate TEA Operations system has significantly improved the supply chain – the trend and event archive, also called Time Machine – so control accuracy, which has directly improved the profitability operators can move timelines and check what has happened of Gasum’s alternative fuel business. on the process level. Now time management is part of logistic Already today, Gasum is able to centrally control its planning, and end-point forecasts define accurate delivery various biogas plants and gas filling stations, as well as timings. Time optimisation is a key element in finding the monitor container logistics with GPS. Furthermore, the system best way to control the process and operations. enables the company to centrally calculate total biogas sales and transfer data to its enterprise resource planning (ERP) system. Such an integrated operation system is unique for the Moving toward a carbon-neutral plants. society Although Valmet has built a solid reputation for itself in automating the pulp and paper industry, the company has a Case study: Topping up profitability history of over 200 years. It has been active in big oil and gas at Manga projects for decades. As a result of a deep understanding of The Manga Terminal in Finland is the world’s most northern small scale virtual pipelines, the Valmet experts have now LNG import terminal. It is also the first one to offer Cloud taken the company’s automation solutions and applied them connections for LNG trucks. to renewable gas supply chains to improve these businesses Valmet’s automation systems are connected through VII to and make operations profitable. provide load permits to trucks via Cloud services. The Today, Valmet aims to be part of the energy transformation operators no longer make any bookings, the logistics movement, enhancing sustainability and enabling a carboncompanies are now responsible for those. The terminal neutral society. operators just follow the bookings made in DNA Integrated Operations. Afterwards, information about the deliveries is transferred automatically to the terminal’s invoicing system.

Conclusion The transport companies book the capacity and the It is clear that the alternative fuel market is moving along loading time. The order number is directly saved in the DNA a solid path toward long-term success. Companies such Integrated Operations tool, where truck drivers are able to see as Valmet that can help remove some of the existing it. It allows them to plan their deliveries more effectively. barricades for small scale virtual pipelines can speed up this DNA Integrated Operations is also in use in the control development. room. Operators are able to see which truck companies are The overall goal is to make sustainable energy solutions coming at what time. If necessary, the operators can book a more efficient, reduce emissions, and help businesses become free slot in the loading dock for service work. Additionally, more profitable through optimisation.

Ex. steel mill

[UNDER DEVELOPMENT]

February 2022

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Barinder J S Ghai, Sandvik Materials Technology, UK, details a material improvement in extending the life of LNG vaporisers.

S

upplies of LNG are on the increase. According to BloombergNEF, the global supply of LNG could reach 449 million t by 2025, up 23% from 2020.1 This raises several questions around adopting the most economic and efficient solutions for the production of this important energy source, including consideration of the processes involved in regasification.

For years, the LNG regasification industry has experienced a challenge using direct seawater in vaporising units. The high level of chlorides in the water, the higher ambient temperature the equipment may encounter, and the lack of effectiveness of flushing the units may lead to the severe corrosion of heat exchanger tubes.

Crevice corrosion, one of the most common forms of corrosion affecting LNG heat exchanger tubing, may occur in crevices and other narrow spaces that are exposed to chloride-bearing seawater.

Traditionally, the most popular material used in the manufacture of vaporising units has been the super austenitic stainless steels such as AL6XN and 254 SMO. However, cryogenic conditions, corrosive seawater, and several kilometres of vulnerable tubes create a recipe for potentially significant productivity losses and a short material lifespan due to corrosion and leakage. As a result, in the fight against seawater corrosion, current alternatives for LNG cryogenic vaporiser tubing involve steep trade-offs including high nickel alloys that are more expensive.

Over the last 10 years, in an effort to improve the direct seawater process, vaporiser designers and fabricators have investigated material and design alternatives to extend the life of vaporiser units, or even mitigate seawater corrosion.

Several options presented to the users have either been cost-prohibitive, complex in design, or just ineffective.

Exotic, high nickel alloys such as Alloy 625 or Alloy C276 may improve performance but are high in cost. More

32

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economical materials are available, but carry a risk of significant leakage. Alternative heating media such as the indirect seawater/glycol heating process can eliminate seawater corrosion but are expensive to implement and maintain, and can take up significant space onboard the FSRU. On the scale of 10 t of tube per FSRU vaporiser, the costs of such compromises are simply too significant to ignore.

Improving direct seawater vaporisation

Sandvik Materials Technology, a developer and producer of advanced stainless steels, special alloys, titanium, and other high-performance materials has introduced two super austenitic alloys in seamless tube for high product integrity, and to assist in improving heat exchanger lifespan and productivity without the added costs of alternative heating media.

Sanicro® 23 and Sanicro 35 have been designed to bridge the performance gap between stainless steels and higher-cost nickel alloys. They offer strong resistance to highly corrosive conditions, making them ideally suited for LNG cryogenic seawater vaporiser tubing.

These materials are part of a new family of superaustenitic (highly alloyed) stainless steels with 6 - 7% molybdenum. The tubes combine superior corrosion resistance and high mechanical strength to provide vaporiser tubes with

a substantially longer service life than standard stainless steels.

Sanicro 23 and Sanicro 35 are the results of years of extensive in-house testing and trials designed to solve the material challenges of LNG producers and other demanding industrial applications. Their super-austenitic microstructure allows for impressive impact toughness in cryogenic environments, superior pitting corrosion resistance in chloride-containing environments, and improved crevice corrosion in seawater compared to some common nickel alloys.

The crevice corrosion resistance properties of the two materials make them well suited for application in shell-andtube heat exchangers. Deploying Sanicro 23 and Sanicro 35 for FSRU vaporiser units using seawater as a heat transfer media enables existing direct seawater users to simply retube their equipment. Being seamless allows for the upgrading of tube material without the challenging demand for tube-totube sheet back seal welding or in-bore welding.

Separately, the high mechanical strength of the materials (an approximate 500 MPa yield strength on produced heat exchanger tubes for Sanicro 23; minimum of 425 MPa in an Rp0.2 for tubes made from Sanicro 35) under cryogenic conditions may also allow for significantly thinner tube designs, depending on the weight savings per vaporiser. At the same time, the thinner design can improve heat transfer to further improve operational efficiency.

Supporting direct seawater design

One of the advantages of Sanicro 23 and Sanicro 35 is that the products allow for the maintenance of a simplified vaporiser design for FSRUs based on the continuous use of direct seawater. The fact that the tubes can be easily welded using standard procedures and consumables can help reduce installation costs. The high mechanical strengths of the two materials also mean designs can be easily tailored and downtime due to corrosion resistance and leakage can be substantially reduced. This can assist in enhancing productivity while simplifying maintenance and inspection.

Reducing the corrosion challenge

Figure 1. Crevice corrosion performance of Sanicro® 23.

In direct seawater vaporising units, the two main corrosion challenges impacting materials used are crevice corrosion and pitting corrosion.

Table 1. CCT-values for Sanicro® 35 compared to some alloys according to various test methods. The applied potential was 700 mV vs SCE as per ASTM G150. Flat coupons were tested with surfaces wet ground with P600 grit paper for the ASTM G150 test and with P120 for the ASTM G48 tests CCT (˚C)

Alloy ASTM G1501)

ASTM G48 method D2) ASTM G48 method F3)

100

52.5

45

Alloy C276

52.5

42.5

Alloy 625

45

25

Sanicro 35

254 SMO

75

35

1) Crevice formers according to IS18070 with applied momentum of 3 Nm. 2) Applied momentum of 0.28 Nm. 3) Applied momentum of 1.58 Nm.

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February 2022

Crevice corrosion performance

Both Sanicro 23 and Sanicro 35 were tested for crevice corrosion resistance.

For Sanicro 23, critical crevice temperatures (CCTs) were determined along with those for alloys 316L, 254 SMO, 625, and C276.

Sample preparation involved an 80 mm tube length with an 8 mm hole and passivation for 24 hours to allow the crevice to form under tension. The CCT ramping rate was established at 1˚C/min. A pressure of 0.28 N/mm2 and 1.58 N/mm2 was applied to the crevice, the electrolyte was 1M sodium chloride (NaCl), and CCT was determined when the current drastically increased.

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Table 2. CPT-values for Sanicro 35 compared to Sandvik 254 SMO. The CPT was measured on coupons with P120 surface for the ASTM G48 test and P600 surface for the G150 mod. test CPT (˚C)

Alloy

Mod. G150 in 3M MgCl2

ASTM G48 method C

Sanicro 35

110

>851)2)

254 SMO

67

653)

Alloy C276

N/A

>851)2)

Alloy 625

N/A

>851)2)

1) According to the standard ASTM G48, the method was developed to be used up to 85˚C. 2) Method C. 3) Method E.

Figure 2. Pitting corrosion performance of Sanicro 23.

Sanicro 23 displayed a CCT of 85˚C which was 25˚C greater than for alloy 254 SMO. While Alloy C276 also performed well, electrochemical activity was observed as low as 80˚C. 254 SMO would have a similar resistance to localised corrosion as Al6XN. Sanicro 23 was found to provide significantly improved resistance to critical crevice temperature in seawater compared with standard alloyed tube grades such as 254 SMO and Alloy 625.

For Sanicro 35, CCT was determined along with Alloy 625 and Alloy C276. The coupons were tested using two methods: in the first method (ASTM G48 method D developed for nickel alloys with 6% iron chloride (FeCl3)), the test lasted 72 hours and a torque of 0.28 Nm was applied; and, in the second method (ASTM G48 method F developed for stainless steels), a torque of 1.58 Nm was applied and the test was for 24 hours.

In both test methods, Sanicro 35 provided a CCT that was significantly higher than alloy 625, despite both materials having a similar PRE – in ASTM G48 method D, Sanicro 35 displayed a CCT of 52.5˚C, while in ASTM G48 method F, the CCT was 45˚C. The CCT values for Alloy 625 were observed as 45˚C and 25˚C respectively. In ASTM G48 method D the CCT values for Sanicro 35 were similar to Alloy C276, which had a higher PRE. However, in ASTM G48 method F it had a better CCT than C-276. Across both tests, Sanicro 35 was shown to offer more resistance than Alloy 625, while in the test for

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February 2022

stainless steels with a higher crevice force, Sanicro 35 displayed a higher CCT than alloys 625, C276, and 254 SMO.

Pitting corrosion resistance

Pitting attacks are not uncommon on steel tubes exposed to high chloride-containing seawater. The material can be penetrated in a very short time, leading to leakage, reductions in productivity, and unscheduled maintenance.

In a modified ASTM G150 test, polished samples of Sanicro 35 were used for critical pitting testing (CPT), using a test solution of 3M magnesium chloride (MgCl2). This is a more aggressive solution than the standard G150 sodium chloride (1M NaCl) test.

Previous tests had proven that the CPT for Sanicro 35 was 110˚C or 230˚F. This was found to be approximately 45˚C (80˚F) higher than the CPT identified in comparisons with 6Mo alloys such as 254 SMO, and suggested Sanicro 35 would be suitable for use in high chloride content environments.

For Sanicro 23, a modified ASTM G150 test using a test solution of 3M MgCl2 was also conducted. The sample was a 60 mm tube length with cut ends, edges, and notched grounded, with a passivation period of 24 hours. The temperature ramping rate for the test was 1˚C/min. while the constant potential was 734 mV vs the Ag/AgCl electrode. CPT was defined when the current density exceeded 100 µA/cm2 for a minimum of 60 sec.

The average CPT for Sanicro 23 was found to be 95˚C, almost 30˚C higher compared to 254 SMO. 254SMO would have had a similar resistance to localised corrosion as Al6XN. Both Sanicro 23 and Sanicro 35 were found to have a PRE at or exceeding 50 – well in excess of the limits for seawater service.

Proven performance

A major LNG infrastructure provider recently deployed Sanicro 23 on two new direct seawater vaporising units for a vessel that has been operating at nearly full capacity for more than 14 months. No leaks have been recorded from the material to date. By contrast, at least four leaks were identified in the old material within the first six months of operation.

Solving corrosion together

The process of using direct seawater in LNG vaporising units is a growing trend within the industry because of its potentially significant economic benefits compared to rival methods of cryogenic vaporising. However, these benefits can only be fully realised if the highly corrosive effects of seawater can be overcome. Using vaporiser tubing made from high nickel alloys is a solution – but these materials come at a considerable financial cost.

Sanicro 23 and Sanicro 35 belong to a new family of super-austenitic stainless steels, which combine superior corrosion resistance with high mechanical strength, and can represent a more economic and effective answer to the corrosion challenges experienced by standard stainless steel and common nickel alloys.

References 1.

Bloomberg, Global LNG market outlook 2021-25, (2021).

Tobias Häggblom, Frans Launonen, and Lauri Bastman, Vahterus, Finland, explore the opportunities LNG regasification presents to improve energy efficiency through recovering the energy available in cold LNG.

L

NG is not a substance that occurs naturally on Earth.

When natural gas is liquefied at temperatures of approximately -162˚C, its mixture of simple hydrocarbons of primarily methane mixed with small quantities of ethane, propane, and butane have a boiling point well below any temperature found naturally on the Earth’s surface.

LNG represents a storage of energy, both in the sense that it is a hydrocarbon fuel that can be burned, but also in that it is an extremely cold liquid that has been artificially created at the expense of energy. During regasification, this energy is released.

Sadly, it is typically entirely wasted: primary heat sources such as ambient air or seawater are often used, and after regasification are simply dumped back into the environment at a cooler temperature.

However, this energy can be tapped for beneficial purposes, to improve the total LNG cycle energy efficiency and reach energy savings at locations physically removed from the LNG liquefaction itself. On a large scale, it is a refrigeration process with a virtual pipeline, with compressors located at the liquefaction plant and the consumer located at the regasification location. This represents an additional financial benefit to the LNG purchaser: reducing operating costs for any processes requiring media cooling.

The production of LNG from natural gas requires substantial amounts of energy in a compressor-based

refrigeration cycle. For example, it has been calculated that for pure methane and a process pressure of 55 bar, the compression work alone consumes approximately 800 kJ per kg of liquefied methane product. In real processes, the energy expenditure is even higher, and in assorted studies energy consumption in the range of 1000 - 1500 kJ per kg of LNG appears usual. Compared to the lower heating value of LNG, the energy required by liquefaction represents approximately 3% of the energy contained in the LNG itself. With cold recovery, the overall efficiency of this process can be substantially increased, since around half of the energy can be reused.

In a typical case, with logistics and regasification included, up to 25% of the energy content of LNG is consumed to deliver the gas to the end consumer. Much of this energy is wasted as ambient heat during the liquefaction process and transportation, but there is significant potential for energy recovery from the ‘cold energy’ stored in the LNG.

Practical applications of cold recovery

One of the most inexpensive and least complex ways of utilising the cold energy is to use it in boil-off gas (BOG) handling. When LNG is stored, the heat from the surroundings will make part of the LNG vaporise, since there is no such thing as a perfectly insulated tank. The sub-cooled LNG in the tank

37

can be used to recondense the natural gas. Vahterus Plate & Shell Heat Exchanger, with its ability to handle higher pressures, is considered an ideal choice for this application.

Another simple application for cold recovery from LNG is to use it as part of the cooling system for whatever engine or turbine is consuming the natural gas, using the cooling water from one part of the process as a heat source for regasifying the LNG, via an intermediate glycol circuit to avoid freezing issues. With an artificial source of cold in near proximity, less cooling capacity from the surrounding environment is required.

A more utility-focused application is to use an intermediate glycol or refrigerant loop to assist in HVAC and freezer or cold storage solutions. In these cases, the intermediate loops tend to

Figure 1. LNG is not a substance that occurs naturally on Earth. When natural gas is liquefied at approximately -162˚C, its mixture of simple hydrocarbons of methane mixed with small quantities of ethane, propane, and butane have a boiling point below any temperature found naturally on the Earth’s surface.

operate at approximately -30˚C for cold storage, and as warm as 0˚C for HVAC systems, in order to be cold enough to assist the traditional electricity-driven systems. On the hot end of the loop, most heat exchangers can usually cope with the requirements, but the LNG vaporiser has more strict requirements that cannot be fulfilled by semi-welded or gasketed heat exchangers. In addition, depending on the facility, LNG consumption may be extremely variable, for example onboard cruise vessels. Marine engines can operate on rapidly cycling loads that present their own challenges. Vahterus Plate & Shell offers a fully welded construction with round plates that dissipate stress evenly instead of concentrating it into sharp corners, giving it superior longevity compared to many other technologies. In Vahterus’ experience, the payback time for cold recovery implementation is better for cold storage solutions because the energy demand is more constant, whereas with HVAC systems it is both smaller and more fluctuating, and dependent on ambient temperatures.

Another energy consuming process where LNG cold recovery can be used is air separation. This is an energy-intense process using approximately 0.5 kWh to produce 1 kg of product. To be able to liquefy air, it must be cooled down to at least -140˚C. In practice, this requires a mixed refrigerant and multi-stage compressor set-up. An intermediate cold recovery loop operating at -130˚C or below can provide meaningful energy savings for the process. Of course, this places a fair amount of stress on the heat exchanger, which has to be able to cope not only with cryogenic conditions but also with close approach temperatures. It is common for the intermediate circuit to cool down to temperatures below the regasified LNG outlet temperature, i.e. to have a temperature cross-over between the ‘hot’ and ‘cold’ media. With a true countercurrent flow possible over a welded plate, Vahterus heat exchangers can provide an ideal solution for handling both thermal performance and mechanical challenges offered by this application.

Unlike many other cold recovery applications, here, due to the operating temperatures, the use of mixed refrigerants is more beneficial than traditional liquid heat transfer fluids. The refrigerants can easily be used with an adapted Vahterus thermosiphon system, which is a closed loop between a refrigerant boiler and condenser driven entirely by gravity and variations in density between gas and liquid. This allows for the safe and easy use of an intermediate circuit for heat transfer, without consumption of electricity or other utilities.

Challenges to overcome

Figure 2.Vahterus R&D has undertaken testing with liquid nitrogen vaporisation at -180˚C to study the behaviour and effects of sub-zero temperature glycol in a heat exchanger for cold recovery purposes.

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There are many options available when choosing the intermediate fluid for cold recovery. Unfortunately, there are no perfect solutions that avoid freezing, are non-toxic, and are non-flammable. Many of the refrigerants used previously have a high global warming potential (GWP). A water glycol mixture is the most commonly used fluid in cold storage. However, the freezing temperature of a 50/50 mixture of ethylene glycol and water is approximately -40˚C. This makes it challenging, since the sub-cooled LNG entering the vaporiser can be as cold as -160˚C, and the operating temperature of the glycol loop itself has to be approximately -30˚C. The heat exchange surface temperatures will be well below the freezing point of glycol, and there is little margin in the glycol temperature, so implementing a design that does not freeze easily is paramount.

Vahterus R&D has undertaken extensive testing with liquid nitrogen vaporisation at -180˚C to study the behaviour and effects of sub-zero temperature glycol in a heat exchanger for cold recovery purposes. One of the interesting points is that while the freezing temperature (when ice crystals begin to form) of 50% volumetric mix of ethylene glycol is -37˚C, the solidification temperature is even colder, at -51˚C. In the in-between state, the glycol exists as a sort of high viscosity slurry that can still be pumped, although poorly in comparison to liquid glycol.

The benefits of a heat transfer plate compared to a shell and tube design is evident in the shear stress equation:

Simplified, shear stress is the factor of pressure drop over the channel length, and with the higher pressure drop of a plate heat exchanger in comparison to a much longer tube, the shear stresses found in a plate heat exchanger are also much higher. This high shear stress acts as an anti-fouling mechanism, of which ice formation on the heat exchange surface can be considered a part. Finally, it must be recognised that while cold recovery has great potential to increase overall system efficiencies and act to reduce OPEX, it can create more complex systems and require more investments early on in terms of equipment and system design, increasing CAPEX. For this reason, it is important to consider projects holistically, and account for both investment and operating costs at the same time. In general, the payback time for cold recovery implementation tends to be relatively short, but is, of course, always dependent on project specifics.

Conclusions

Cold recovery from LNG regasification can recover substantial amounts of energy, exceeding 800 kJ per kg of LNG. Typically, this energy recovery potential is completely wasted. Various applications in cold storage, cargo BOG handling, air separation, and many more, exist where this potential could be taken into use with simple cold recovery solutions. Intermediate fluid selection between glycol, mixed refrigerants, and other alternatives must be considered on a per-project basis.

With over 30 000 heat exchangers delivered for general refrigerant applications, Vahterus has extensive experience in cryogenics and LNG, and combined with its R&D investigation into cold recovery, the company has a comprehensive understanding of the benefits and challenges faced by heat exchangers in implementing these systems. The structural design of a Vahterus Plate & Shell unit with its round welded plate pack inside a pressure-bearing shell ensures a durable construction fit for cryogenics applications. Its compact size and small footprint also make it a good solution for retrofit projects.

While implementation of cold recovery does lead to more complex design requirements and additional investment costs, the reduced operating costs more than offset these and typical payback times tend to be short. With rising energy costs, global warming, and positive financial incentives from reduced operating costs, Vahterus believes cold recovery to be a valuable addition to LNG regasification processes and encourages regasification system owners to consider implementing it in their applications.

T

he shipping industry has set course for decarbonisation with an initial greenhouse gas (GHG) strategy that is due to be revised in 2023. In this strategy, the current goal is to reduce at least 50% of its total annual GHG emissions from international shipping by 2050, compared to 2008. In addition to this ambition set by the International Maritime Organization (IMO), in July 2021, the European Commission also proposed various new, stringent EU regulations on the shipping sector.

Alongside the urgency to decarbonise, shipping still needs to responsibly meet increasing fuel consumption driven by the rising demand for shipping. So how does the industry tackle the climate challenge and reinvent itself in the energy transition?

At TotalEnergies Marine Fuels, the company’s strategic focus is to effectively support its shipping customers’ decarbonisation journeys across the short- and long-term.

Along with the development of low-sulfur fuels that comply with the new IMO sulfur limit regulations, the company recognised early that LNG represents the best alternative solution today – in terms of emissions, availability, and affordability – to reduce shipping’s environmental footprint.

Importantly, next-generation, natural gas solutions – bio- and e-methane – have the benefit of utilising the same LNG bunkering assets and infrastructure, thereby extending the shelf life of these investments made by the industry today.

As such, TotalEnergies took long-term investment commitments to support the uptake of marine LNG globally. Its goal is to extend its LNG supply chain across major global bunkering hubs.

In December 2021, the 18 600 m3 Gas Vitality started operations and joins TotalEnergies’ growing LNG fleet as its latest chartered LNG bunker vessel. Positioned at the Port of Marseille Fos, this is the first LNG bunker vessel based in France.

Together with Gas Vitality’s sister ship, the 18 600 m3 Gas Agility that is based in the Port of Rotterdam, the Netherlands, both vessels demonstrate the company’s commitment to make LNG bunkering capabilities readily available in key European hubs.

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The world needs more energy but with fewer emissions. Jesper Rosenkrans, TotalEnergies Marine Fuels, Singapore, reveals how shipping is reinventing itself and why LNG is the first step on the journey to cleaner and lower-carbon marine fuels.

Figure 1. The 18 600 m3 Gas Vitality, TotalEnergies’ second chartered LNG bunker vessel.

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In 2022, TotalEnergies will also begin operations of a third LNG bunker vessel to serve Singapore, where the company is proud to have been awarded an LNG bunker supplier license for a five-year term that started 1 January 2022.

Growing demand for LNG

In 2021, shipping’s transition to LNG is further evident in the continued acceleration of LNG-fuelled ship orders.

Figure 2. Gas Vitality, the first LNG bunker vessel based in France, arrived at the Fos Cavaou LNG terminal for its inaugural LNG loading operation on 28 December 2021.

Figure 3. Clarksons October 2021 new ship orders.

Collaborations to help accelerate decarbonisation of shipping TotalEnergies has become involved in numerous coalitions, assocations, and joint studies: zz Coalition for the Energy of the Future. zz Getting to Zero coalition. zz Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. zz Transition Eco Energétique du Maritime Coalition (France). zz Global Industry Alliance, under the International Maritime Organization (IMO). zz SEALNG. zz The Society for Gas as a Marine Fuel (SGMF). zz Ammonia Energy Association. zz Itochu Joint Study Framework with 34 companies on Ammonia as a Marine Fuel.

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According to Clarksons’ October 2021 data, LNG-fuelled vessels represent more than 30% of the total Gross Tonnage on order. This reflects a rising global momentum for shipping companies to take positive action – now – to reduce their environmental footprint by using LNG as their fuel choice.

TotalEnergies forecasts the LNG bunker market could represent 10% of the bunkering market by 2030.

Correspondingly, traction in developing LNG bunkering infrastructure has expanded to facilitate the uptake of LNG marine fuel, with several leading ports and LNG bunker suppliers alike having established key initiatives and made significant progress in support of these developments.

Clarksons records 124 ports with LNG bunkering facilities, up from 93 at the start of 2020, and forecasts this will increase to 170 by 2022. In addition, Offshore Energy also projects that the LNG bunkering fleet will double in size in the next two years.

Today, there are 26 LNG bunker vessels in operation globally and the fleet will grow to 43 units offering an aggregated capacity of between 7 - 8 million tpy by early 2024.

Upholding reliable sourcing and mitigating price risks

With robust demand despite LNG bunker prices having gone on a record surge last year, how should secure LNG sourcing be ensured and affordability for shipping customers maintained?

As the second-largest LNG player globally, TotalEnergies has developed a portfolio right across the value chain aggregating LNG liquefaction, transportation, trading, regasification, and marketing all over the world, with operations in all key LNG market demand areas.

Through the company’s ongoing LNG investment programmes, including its interests in liquefaction plants in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the UAE, the US, Australia, and Angola, TotalEnergies is expected to achieve a global portfolio of nearly 50 million tpy by 2025.

With this integrated LNG business model, it has also enabled TotalEnergies to provide its customers with flexible and secure LNG sourcing and customised pricing solutions.

Is LNG a stepping stone to bioLNG?

As a next step in its evolution, biomethane can provide a viable pathway to achieve shipping’s decarbonisation goal. A study conducted independently by research and consultancy organisation, CE Delft, concludes that bioLNG is a scalable solution for the maritime sector. It also showed that bioLNG will likely be commercially competitive relative to other low-carbon and zero-carbon fuels.

In 2020, biomethane production reached approximately 50 TWh globally from the output of 1100 operating plants.

This production potential could grow to reach a capacity of 8500 TWh. With an expanding LNG-fuelled fleet, bioLNG can be used without needing to undertake any vessel modifications, and the existing supply infrastructure will still be fit for bunkering purposes with either fuel when bioLNG is scaled up. This will help avoid unnecessary capital outlay for new alternative fuels infrastructure.

TotalEnergies has already begun to contribute to the commercial availability of marine bioLNG. The company’s first

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Figure 4. TotalEnergies’ first chartered LNG bunker vessel, the 18 600 m3 Gas Agility, has been operating at the Port of Rotterdam, the Netherlands, since November 2020.

chartered LNG bunker vessel, the 18 600 m3 Gas Agility, refuelled the 23 000 TEU CMA CGM Jacques Saadé containership in November 2020, and demonstrated the capability in supplying bioLNG in the bunker mix with the introduction of biomethane for approximately 13% of the LNG delivered. Undertaken through the Guarantee of Origin (GO) certificate mechanism, this marks the shipping industry’s first commercial use of biomethane on this scale. Since then, the company has ramped up this offer to its customers.

Additionally, TotalEnergies is looking at the wider commercialisation of biomethane as part of its greener marine fuels mix and expects the appetite for bioLNG bunkering to grow, as shipowners’ orders of LNG-propelled vessels continue to increase.

As part of TotalEnergies’ work in the Coalition for the Energy of the Future, the company is helping to shape France’s first bioLNG production for shipping. Developed with CMA CGM and Elengy, this major project will transform household waste from the Métropole Aix-Marseille Provence into bioLNG in the port of Marseille Fos. The bioLNG will be used to advance green mobility from the port, notably for CMA CGM’s LNG-powered vessels.

Developing broad solutions collaboratively

Figure 5. TotalEnergies’ outlook of shipping’s energy mix.

Figure 6. TotalEnergies’ integrated LNG network.

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The adoption of LNG marine fuel is expected to continue to experience an accelerated growth into 2030. Nevertheless, suffice to say, LNG alone will not be enough to decarbonise the shipping sector. As the industry heads towards IMO2050, there is no doubt that the future of shipping will be comprised of a mix of fuel solutions and the shipping industry will need all of them to meet future fuel demands.

TotalEnergies believes that within this decade (2021 - 2030), the shipping industry will see the practical development and deployment of a variety of bioenergies and hydrogen-based fuels, including e-methanol, e-methane (synthetic LNG), e-ammonia, and e-hydrogen.

The application of these fuel solutions will centre on first-mover initiatives and pilot trials, which are designed to demonstrate the capability of new vessels in using these fuels.

Finally, the market’s scaling up of hydrogen-based fuels is likely to materialise between 2030 and 2040, in line with the ramp up of electrolysis to commercial levels.

Moving shipping into a net-zero carbon future will require collective action with stakeholders throughout shipping’s ecosystem, as well as cross-industry collaborations.

TotalEnergies’ active participation in various shipping and cross-industry initiatives and coalitions underscores its commitment to support shipping’s decarbonisation goals and to help accelerate the development of future fuels.

In May 2020, TotalEnergies publicly declared the company’s ambition to get to net zero emissions by 2050, together with society, for all its operations worldwide, from production to the use of energy products sold to its customers.

In line with this climate ambition, TotalEnergies Marine Fuels is also leveraging on the company’s low-carbon investments and R&D capabilities to intensify its investigation into these future solutions.

The bottom line is: everyone has a part to play in not just the ‘here and now’ of cleaner marine fuels, but in the sustainable development of tomorrow’s carbon-free shipping future.

Carlos Guerrero Pozuelo, Bureau Veritas Marine & Offshore, France, reflects on the support for seaborne LNG and the innovation that continues to characterise the company’s growth.

B

ureau Veritas (BV) has been addressing safety and risk while supporting and helping foster innovation since 1962. BV classed the first Korean-built membrane LNG carrier in 1995, the first LNG FSRU in 2005, the first FLNG in 2013, and in 2017, the largest FSRU ever built – the 263 000 m3 MOL FSRU Challenger. BV also classed the first LNG bunkering vessel, the 5000 m3 GREEN Zeebrugge, built in 2017.

In 2022, the industry will see the world’s biggest floating tanks installed – the two 360 000 m3 capacity FSUs that are part of the Arctic LNG 2 project. Following its successful work on the nearby Yamal LNG project, BV (in dual class with RMRS) is classing the FSUs and the 21 ice-breaking LNG carriers that will supply them. Each LNG carrier will be approximately 300 m long and will have a cargo capacity of approximately 172 000 m3. The propulsion system includes three azimuth propulsion units, with a total power capacity of approximately 45 MW. The lead vessel in the series of 15 ordered from Zvezda Shipbuilding Complex will be the first ever vessel of such dimensions, cargo capacity, and icebreaking capabilities to be constructed at a

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Russian shipyard with the support of SHI as a ship designer and subcontractor.

Ensuring safety in ice

Like their Yamal LNG carrier counterparts, these new dual-acting LNG carriers will be highly winterised, have two engine rooms, a double hull, added strength ice-belts in the hull, and will undergo a very detailed fatigue life analysis to ensure the hull can withstand the expected extreme stresses for the life of the vessels. They will be designed for the year-round transportation of LNG in the challenging conditions experienced along the Northern Sea Route, including its eastern sector, and will include some improved features taking advantage of the previous experience in the Yamal generation.

The Zvezda vessels will be the first polar class LNG carriers with GTT Mark III cargo containment systems onboard. GTT obtained Approval in Principle (AiP) from BV in 2019 for the Mark III Flex system that will be used. The approval was based on the results of vibration and acceleration tests performed to simulate the behaviour of the containment system during ice-breaking operations.

LNG as bunker fuel

LNG as bunker fuel has featured early in shipping’s decarbonisation plans, and in November 2017, Rodolphe Saadé, Chairman and CEO of CMA CGM Group, made the pioneering choice to equip a series of nine 23 000 TEU ultra large container ships with LNG-powered engines. Built to BV class, the new ships have a bunker capacity close to 18 000 m3.

This enables unbroken round trips between Europe and Asia and represents a significantly higher bunkering volume than had been required in the past. BV ensured the feasibility of the design together with shipbuilding group China State Shipbuilding Corp. and the containment system designer GTT. The increased size of these and other LNG-fuelled ships is driving bunkering needs well beyond the capacity of the LNG trucks used for smaller bunkering operations and has led to the development of purpose-built LNG bunkering vessels. BV has been involved as early as 2011 in AiP of concept designs of LNG bunkering ships and finally classed the first ever LNG bunkering vessel and the largest LNG fuel ships. Although a fairly recent development within the LNG value chain, LNG bunkering vessels now play a prominent role, offering higher volume potential as well as significant flexibility, effectively removing barriers related to port infrastructure.

Supporting innovative designs

Specially built to service the new CMA CGM ships, the 18 600 m3 Gas Agility is still the world’s largest LNG bunkering ship. The vessel, classed by BV, is equipped with a dual-fuel diesel-electric propulsion system. The dual-fuel gensets burn boil-off gas (BOG) from the LNG tanks to produce electricity.

This is sent to the ship’s distribution switchboard and feeds the electrical motors connected to the propellers, enabling the ship to limit fuel oil consumption and CO2 emissions and enhancing the ship manoeuvrability.

BV accompanied the stakeholders throughout the development of the Gas Agility, providing regulatory and classification expertise from the earliest stages of the project and providing guidance for cargo handling, reliquefaction and cooling systems, propulsion, and more. BV provided design approval, survey at yard, and vessel classification, managed

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statutory certification for SOLAS and MARPOL requirements, and provided an IGC fitness certificate. HAZID and HAZOP analysis exercises were conducted for the LNG transfer system and bunkering activities, defining safety zones in port areas where transfer operations can occur.

Ensuring bunkering safety

More terminals and bunker suppliers are interested in providing LNG as the safety issues are addressed and experience grows.

In 2015, Singapore, one of the largest bunkering hubs in the world, launched a programme for testing protocols, safety, and operational procedures for LNG bunkering. BV was closely involved in this and in the development of the national LNG bunkering standard for Singapore, and has also worked with one of the two licensed LNG providers selected by the Singapore Port Authority (MPA) to provide risk assessments first for truck-to-ship, then for ship-to-ship LNG bunkering operations. BV organised HAZID and HAZOP workshops to identify all possible risks and define safety zones and draft operation procedures. This included the development of quantitative risk assessments, operation procedures, and a joint operation plan.

More recently, BV granted AiP to bunker supplier LNG MARINE SDN BHD for its first LNG bunkering vessel concept – a first for a Malaysian company. Malaysia is a significant LNG bunkering hub, with over 100 000 vessels passing through the Malacca Strait each year. The availability of two regasification terminals and one FSU along the shores of Malaysia will provide steady supply.

Focus on cargo and propulsion systems

While some LNG bunkering vessels might be designed for a specific project, they are typically able to bunker other types of ships as well and sail between different ports and terminals.

Ideally, they move from ship to ship until they run out of LNG cargo, because it is in the owner’s financial interest to be able to refuel several ships before having to reload again at the terminal. This means some bunkering vessels may cover varying distances at partial load capacity leading to sloshing – the violent behaviour of the liquid contents of the LNG tank due to the motion of the sea and ship. This phenomenon is particularly important for membrane containment systems.

The smaller size of LNG bunkering vessels results in higher acceleration of the liquid cargo than that expected for standard 174 000 m3 LNG carriers, and if the risk of sloshing is not properly addressed, it can result in large structural loadings, possibly damaging the cargo containment system, the inner hull, and pump mast structures. BV has a methodology to assess loads and determine appropriate design responses including defining the operational limitations of the vessel. This assessment methodology has already been applied to many LNG carriers, FSRU, FLNG, and LNG-fuelled ships. It includes a seakeeping analysis and a sloshing analysis using CFD calculations.

Matching the continually evolving containment and propulsion systems of both bunkering vessels and LNG carriers with supporting equipment such as reliquefaction systems is a key challenge, and BV helps owners make the best decisions for both safety and operational efficiency. Modelling vessel design with advanced computer tools for one or several trade patterns is now the recommended pathway to developing competitive solutions. Key parameters include forced BOG, natural BOG, BOG burned in the gas combustion unit, total gas consumption from

all consumers (gas boilers, main engines, and generator sets), and pilot fuel consumption in dual-fuel engines.

Tackling methane slip

Control of BOG and the prevention of methane slip onboard and during bunkering is coming under increasing scrutiny as more stringent environmental targets are set around the world. Over 100 nations have now taken the Global Methane Pledge which aims to catalyse global action and strengthen support for existing international methane emission reduction initiatives.

BV is active at every stage across the gas value chain from production to small scale delivery, and is already helping the industry work towards these goals. For seaborne LNG, this has involved working closely with engine manufacturers as they make design changes to reduce methane slip caused by incomplete fuel combustion.

Modern dual-fuel engines have drastically reduced methane slip, enabling LNG to be considered as a transition fuel as shipping aims for net-zero carbon emissions, viable on its own in the short-term, and in the longer-term when used in combination with bioLNG or e-LNG, both of which provide a mechanism for recycling CO2 emissions from other industries.

Powering the future

Shipowners’ confidence in the future potential of these new forms of LNG fuel is apparent. Since 2010, the number of vessels fuelled by LNG other than LNG carriers has grown by 20% to 40% each year and now exceeds 200. Over 300 more are on order and another 170 are ordered to be LNG-ready.

New LNG carrier tonnage continues to be ordered to strength and durability standards that enable a 40-year vessel lifetime,

reflecting confidence in today’s ship designs and continued operating potential.

BV is supporting shipowners as they move to reduce emissions further by, for example, installing energy saving devices onboard their vessels. In 2021, BV granted AiP to the wind-assisted, LNG-powered, 2500 TEU Trade Wings 2500 container ship series, designed by VPLP Design, Alwena Shipping, SDARI, and AYRO. Designed to be suitable for short sea shipping operations or feeder operations in Europe, Central America, the Caribbean, and China, the vessels could also operate on transatlantic trades. GTT Mark III containment systems will be used for LNG storage, and the LNG power plant is designed to include pure gas four-strokes gensets only rather than having gensets working in combination with a two-stroke main engine.

This architecture creates a flexible platform allowing possible upgrade to decarbonised fuels such as ammonia or hydrogen.

BV released a Rule Note for ammonia as fuel and an Ammonia-Prepared notation in July 2021. The notation covers the spaces and structural components that will accommodate ammonia fuel tanks and fuel handling and vapour treatment equipment as well as requirements for the engines and boilers.

As further support for this transition, BV issued its first AmmoniaPrepared AiP to GTT for the containment of ammonia in membrane Mark III tanks in February 2021.

With the future adoption of new fuels such as ammonia and hydrogen, the precise role that LNG will play in the long-term is not yet clear. For now, it is too soon to predict whether seaborne LNG will still be a thriving industry in another 60 years’ time.

However, BV believes LNG has a strong part to play in the world’s decarbonisation transition and remains ready to support shipowners, ports, and seafarers as they continue to innovate for a more sustainable future.

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15FACTS

...ON EUROPE AND THE MEDITERRANEAN

The TTF index is starting to become the key price index for North-West Europe

The oldest university in Europe is the University of Bologna, Italy, which was founded in 1088

Whilst Norway is a large exporter of gas generally, only 5% of its exports are in the form of LNG 50% of global lavender production comes from France

Russian LNG accounted for 48% of Belgium’s imports in 2Q21

Spain, the UK, and France have the largest regasification capacities in Europe Islands make up one

Most of Europe’s regasification capacity is onshore

fifth of Greece’s total

The US was the biggest LNG supplier to the Netherlands in 2Q21 (56%)

land area

North-West Europe entered into winter 2021/2022 with storage levels at approximately 70% capacity

Europe covers approximately 2% of the Earth’s surface area

Stonehenge was built approximately 5000 years ago

Qatar was the biggest LNG supplier to Italy in 2Q21 (54%)

Germany will host the UEFA European Championship in 2024

In 2021, archaeologists discovered one of the four lost sun temples in Egypt

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