SmartPorts10-S.huisman-(Small Scale) LNG Challenges

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    Smart Ports SeminarMarin 23 April 2013

    Large- and small-scale LNG challenges

    Stephan HuismanDirector LNG technology - Vopak

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    Contents

    What is LNG?

    Trends in LNG world trade

    Shipping of LNG

    Site selection and demands to port design

    Small scale LNG a new and promising trade

    Questions?

    2

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    LNG?

    LNG = Liquefied Natural Gas:

    predominantly methane (C1

    H4

    )

    liquefied to161 degree C, reducing the volume by a factor of 600

    safe transport & storage at near atmospheric pressure: safety

    vaporizes quickly when exposed to atmosphere & lighter than air

    gas clouds burn, but no explosions (if not confined)

    low level of contaminants and NG a clean burning fuel colorless and no smell

    Why is LNG used?

    allows transport of gas over long distances using LNG Carriers

    creates flexibility in the natural gas market, enhancing reliability of

    supply at competitive pricing

    fuel for power generation and feedstock for industries

    new trend: fuel for marine and road transport.

    3

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    Environmental performance Natural Gas fuel

    Natural gas is cleanest fos si l fuel

    Natural gas is used for:power generation => flexible plants!

    industrial feedstock & fuel

    domestic appliances

    road and sea transport (a recent trend)

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    an integrated high value energy supply chain

    5

    The traditional base-load LNG supply model

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    Why LNG instead of pipeline supplied natural gas?

    Enhances security of supply (example JapanFukushima)

    Allows peak-shaving for high demand moments

    Make-up for decline of piped import & indigenous supply)

    Fuel supply to remote islands and smaller markets

    6

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    Woodside - Australia

    World-wide LNG trade: steady increase (5 to 6% pa)

    Source: ExxonMobil 2007

    7

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    Legend:

    In Operation

    Under Construction

    PlannedPipelines Operating

    Planned Pipelines

    Isle of Grain

    Montoir

    Fos

    Barcelona

    Cartagena

    Huelva

    La Spezia

    Marmara

    Ereglesi

    Revythoussa

    BilbaoSines

    Zeebrugge

    Sagunto

    Aliaga

    Teesport

    El Ferrol

    Europemain Natural Gas import infrastructure(2012)

    8

    2012

    status

    Milford Haven

    Rotterdam

    In last 6 years number of operational import terminals

    increased with 7 (approx. + 30% growth)

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    Woodside - Australia

    LNG carriers: sizes increased

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    Trend LNG fleet: main carrier fleet gets larger

    Source: WoodMac (2008)

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    Challenges for ports

    LNG berths move into busy ports;

    Scheduling of LNG chain is tight and delays not easily tolerated; High vessel costs imply also a need for high port availability;

    High safety standards need to be maintained: The LNG industry

    maintains a conservative approach;

    Vessel traffic management essential to warrant safe manoeuvres;

    Locations selected of berths should have low probability of collision

    Shallow draft vessels (< 12,5 m) so modest water-depths; but

    High freeboards (> 20 m) and Loa between 300 and 350 m require

    manoeuvring space and tug capacity;

    Necessity to remain cost competitive.

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    Woodside - Australia

    Example of specific port design challenges(1)

    Exposed jetty to cyclones

    Dredged channel in hard rockWoodside LNG - Australia

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    Courtesy Sines LNG Portugal

    Example of specific port design challenges(2)

    Co-sitingsafety manaement

    Atlantic swell wave limitations

    Seismicity

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    24/04/2013Vopak LNG

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    Maasvlakte

    Europoort

    Hoek van Holland

    LNG Terminal

    location

    LNG jetties

    Existing HP

    36 H-grid line

    Example of specific port design challenges(2)

    Rotterdam harbour:

    Congestion onshore and water-ways;

    Management of maritime risks

    Port availability in adverse conditions

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    S3

    S4

    S10

    S18

    S22

    S27

    S32

    S46S49

    S11

    S17

    S19S39

    Stad

    Caland

    T

    T

    T

    T

    T

    T

    T

    T

    T

    T

    T

    Euromax

    Lyondell

    TOR

    APM

    EMO Mississippi

    ECT Europa

    ECT Amazone

    Nerefco

    VoridianMOT

    S4

    S6

    S59

    S50

    S60

    S55

    T

    TT

    S2

    S5

    Euromax MV2

    OMO

    MW

    W

    ChemieT

    MaasCentre

    S35

    S42

    TEMO Amazone

    T

    S7

    LionGas

    T

    TGate (Vogas)

    S1

    S8 S68 S71

    S66

    S69

    T

    T

    Benelux

    PET

    S67

    Fairway configuration15

    Creative layout and win-win between projects

    Dredging and land reclamation

    projects shared between various

    projects;

    Extensive logistics simulationsto develop access regime;

    Onshore and nautical quantitative

    risk assessments;

    Navigation studies;

    Wave penetration modelling

    2006 2011

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    24/04/2013Vopak LNG

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    Examples supporting specialised port studies

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    IMO: Emission control areas: ECAs

    EU Directives:Reduction of

    emissions from

    the transportation

    industry

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    ECA

    World

    78%

    97%

    4,5%

    3,5%

    1,5%

    1,0%

    0,5%

    0,1%

    SOx

    (%)

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    ECA

    World

    78%

    97%

    4,5%

    3,5%

    1,5%

    1,0%

    0,5%

    0,1%

    SOx

    (%)

    Emission control: small scale LNG (r)evolution?

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    Gasoil

    LNG

    LNG may also present a material cost fuel cost advantage

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    Challenges ahead for downstream market penetration LNG:

    Standard legislation and equipment standardisation;

    Safety training on how to handle liquid gasses to maintain safety record;

    Engine management technology development;

    Incremental investments in port infra and engine rooms of vessels;

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    Emission control: small scale (r)evolution?

    ECA

    1.250 to 16,000 m3

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    Green river initiative

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    Green Deal:

    LNG Rijn en WaddenSigned on the 5thof July 2012

    Challenges for small scale LNG: Design of bunker barges;

    Design of river barges;

    Design of small LNG depots

    Modal split between water-

    and road transport of LNG

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    LNG

    Gas Oil

    Fuel Oil

    Time

    The volume of future small scale LNG a big question!

    LNG truck fuelling station Zwolle, Netherlands

    Break-bulk Rotterdam

    Dual fuel LNG propulsion in operation

    First movers are active!

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    The future of LNG terminals!

    World-scale

    &

    Small satellites

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