LNG – the dominant fuel for merchant ships by year 2025 LNG

LNG – the dominant fuel for merchant ships by year 2025 LNG

Scientific Journals
Zeszyty Naukowe
Maritime University of Szczecin
Akademia Morska w Szczecinie
2011, 28(100) z. 1 pp. 78–82
2011, 28(100) z. 1 s. 78–82
LNG – the dominant fuel for merchant ships by year 2025
LNG – dominujące paliwo dla floty handlowej w roku 2025
Jerzy Listewnik1, Antoni Wiewióra2
Maritime University of Szczecin, Faculty of Mechanical Engineering, Institute of Ship Power Plant Operation
Akademia Morska w Szczecinie, Wydział Mechaniczny, Instytut Eksploatacji Siłowni Okrętowych
1
2
70-500 Szczecin, ul. Wały Chrobrego 1–2, e-mail: [email protected], [email protected]
Key words: LNG fuel properties, calorific value LNG, examples of LNG ship propulsion system
Abstract
The paper considers and analyses the application of gas (LNG) as a marine fuel for the whole of the merchant
fleet. From made considerations, it is evident that up to year 2025 LNG will become a general ships fuel.
Słowa kluczowe: charakterystyka paliwa LNG, wartość kaloryczna LNG, przykłady zastosowań zakładu
siłowni LNG
Abstrakt
Artykuł rozpatruje i analizuje zastosowanie gazu LNG, jako paliwa statkowego dla całej floty handlowej.
Z dokonanych rozważań wynika, że do 2025 roku paliwem statkowym będzie LNG.
Introduction
from the USA to United Kingdom by the ship
“Methane Pioneer” considered as a prototype.
Thus, in the 1950s intensive fundamental research
and development work was being carried out on
both sides of the Atlantic – quite independently –
with the USA having a good head and shoulders
start. But the amount of reliable published
information on LNG ship technology available
during this period could be written on a single page
of paper – contrary to todays – huge knowledge on
LNG transport technology and secondly on the
usage of LNG as a material for ship propulsion to
a lesser degree, but gaining momentum for its
application as ship’s fuel.
What is Natural Gas? NG is a mixture of
hydrocarbons in which methane predominates – the
mixture varies considerably according where and
how the gas is found – and particularly according
whether it is “associated” with crude oil reservoir –
or “unassociated”. “Associate” gas is “richer”,
because it contains a higher percentage of ethane
(C2H6), propane (C3H2), butane (C4H10) – all of
which have a higher calorific value than methane
(CH4). Natural gas may also contain a small
percentage of nitrogen (N2).
In fact the thinking has started as long ago as
May 1915 when Godfrey L. Cabot had patented an
idea for “...handling and transporting liquid gas” –
by river barge s.p.9 under Cabot’s patent 1915.
There is no record of any such craft having been
built, but the idea was there and indeed, as will be
seen later, Cabot had in fact anticipated many of
basic characteristics of the present-day gas carriers.
The beginning of 1950s is to be recorder that the
first attempts were made to find the materials and to
establish practical design and building techniques
for shipping liquefied natural gas (LNG) at its
boiling point of minus 165C safely across the
oceans of the world in commercial quantities. In
a relatively short time span the transport of liquefied natural gas (LNG) become a well established,
highly sophisticated and safe branch of modern
marine engineering. Ships of up to 300 000 m3
capacity and for their size the most expensive
merchant ships afloat are now in regular service
worldwide.
The year 1959 can be considered as the 52
anniversary of first transatlantic transport of LNG
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LNG – the dominant fuel for merchant ships by year 2025
Methane itself cannot be liquefied by pressure
alone unlike ethane, propane and butane. It must
therefore be cooled in order to convert it into
a liquid for marine transportation. It is normally
cooled to its atmospheric boiling point of –165.5C
or close to this temperature for economic shipment
and in this condition occupies 1/600th of its volume
as a gas.
The boiling point of a natural gas mixture will
often differ somewhat from that of pure methane,
being influenced by the boiling points of the other
gases in the mixture.
Liquefied natural gas (LNG) is colorless and
nontoxic. It has a relatively low flame speed, high
percentage flammability level in air, high auto-ignition point and is non-corrosive. Its weight is
less than half that of water. Its main constituent,
methane, is lighter than air at all temperatures
above –110C (butane, propane and ethane are
heavier than air gases at all temperatures). Were it
not for its very low temperature, LNG would be a
relatively begin product compared with, say,
gasoline. But among other positive LNG data, the
most important is its value of calorific value (kJ/kg)
(see table 1).
Although LNG has been used on a small number
of gas ships for a while, there are an increasing
number of proposals for high-efficiency engine
systems using high-pressure gas applications.
Engine manufacturers and shipyards have developed and validated viable solutions for different
vessel types, many of which MER has written about
previously.
Background
So far it has been mainly the cruise industry that
has benefitted from this fuel, minimising its
emission levels, but LNG has been used for many
years on gas carriers with boilers (in the case of
steam turbine propulsion), four-stroke Diesel
mechanical propulsion or Diesel electric propulsion
installed. All these solutions are based on consumption of readily available LNG as the fuel, and/or
boil-off gas from the LNG tanks. In recent years,
the LNG infrastructure, particularly in Norway, has
developed to the extent that other ship types, like
Ro-Ro and smaller ferryboats use LNG as the fuel.
In 2010, DNV presented the LNG fuelled
container ship, the “Quantum”. The “Quantum”
concept introduces a number of innovative
solutions to increase efficiency and reduce the
environmental impact of container ship operation.
The machinery arrangement is based on electric
propulsion and dual fuel gensets. With the recent
technology development, MAN Diesel & Turbo
now manufactures both dual fuel medium speed
engines, and low speed MAN B&W LNG-burning
ME-GI type engines offering propulsion power
with reduced emissions.
The development of the ME-GI engine has made
it possible to install a simple, yet unique propulsion
power solution, with total system efficiency similar
to conventional vessels, but with reduced emissions. Hence, the further development of the DNV
“Quantum” project with a single propulsion line,
using an ME-GI main engine as the power source,
is a natural and obvious progression for future
container ship designs to obtain a reliable, energy
efficient, and emission-friendly LNG solution.
As a result of recent market trends, it was
decided to increase the ship size from the 6000teu
range to the 9000teu range. With the new Panama
Canal, this ship size is appropriate for the Asia-US
trade through the Panama Canal. The hull form and
arrangement has, consequently, been modified and
optimised for the new machinery arrangement, ship
size and trade.
The ME-GI engine will fulfil IMO Tier III NOx
levels when combined with the exhaust gas
Table 1. Calorific values of fuels [1]
Tabela 1. Wartość kaloryczna paliw [1]
Fuel
Methane
Ethane
Propane
Kerosene
Heavy fuel
Benzene
Coal
H:C ratio
4:1
3:1
2.7:1
1.9:1
1.5:1
1:1
0.8:1
Calorific value, kJ/kg
55 500
51 900
50 400
43 300
42 500
42 300
33 800
It becomes evident, that for a certain distance
to be covered by the ship we need less fuel as
a bunker (~30%).
As the shipping industry faces pressure to
develop solutions that comply with existing and
potential emissions regulations, there has been an
increased interest in developing LNG as a solution
because of its favourable properties when compared
to oil-based fuels. With regards to air emissions,
LNG is known to eliminate SOx and particulate
matters, while NOx and CO2 emissions are reduced
by 80% and 20% respectively.
However, there are a number of questions
overshadowing the general adoption of LNG across
most of the world fleet. The main concerns are that
of the safety and technical issues, the loss of cargo
space and equally pressing, the availability and
safety of getting a good LNG bunker network in
place.
Zeszyty Naukowe 28(100) z. 1
79
Jerzy Listewnik, Antoni Wiewióra
recirculation (EGR) technology. A technology
developed by MAN Diesel & Turbo for the
complete low speed B&W engine programme for
compliance with IMO Tier III NOx emission
regulations.
Then DNV introduced the “Triality”, a new
crude oil tanker concept fuelled by LNG, and that
has a hull that removes the need for ballast water
and recovers hundreds of tons of cargo vapours on
each voyage. The new concept tanker has two high
pressure dual fuel slow speed main engines fuelled
by LNG, with marine gas oil as pilot fuel. The
“Triality” (Fig. 1) will have twin high pressure dual
fuel two-stroke main engines using MGO as pilot
fuel, low pressure dual fuel generator engines using
MGO as pilot fuel and a triple fuel boiler that can
burn natural gas, MGO and Volatile Organic
Compounds (VOCs).
known as the IGF code, in other vessels is being
developed and solidified. There are contradictions
between these two sets of codes that need to be
resolved to give reassurance to owners that their
ships in the future will be fully compliant. The
main conflict is the way LNG is transported when
stored as a cargo or as a fuel, even though it is the
same hydrocarbon liquid with the same properties.
Impacting on design, if the LNG is a cargo it can’t
be stored under the accommodation, whereas if the
LNG is used as fuel it can be located under the
accommodation, such as the DNV “Quantum
9000” (Fig. 2) design which has two large pressurised tanks under the accommodation block of
a container vessel.
Fig. 2. The “Quantum 9000” – LNG stored under the
accommodation [2]
Rys. 2. Statek „Quantum 9000” – LNG pod powierzchnią
mieszkalną [2]
The IMO has brought together the two correspondent groups working on these two codes to
ensure these discrepancies are ironed out. As
a result, the deadline for confirming the IGF code
has been pushed back two years to 2014, adding
even more uncertainty to owners eyeing LNG as
a solution for the 2015 Emission Control Area
(ECAs) emission deadline.
Many owners cite the lack of infrastructure as an
obstacle, although according to gas suppliers, this is
one that can be dealt with fairly quickly. A number
of companies are actively addressing this issue,
including port authorities, gas and utility companies, LNG terminals and ship operators, who are all
looking at the logistical chain for LNG bunkering
that is suitable and economic. Another concern
is necessary qualification of the crew members
involved in LNG bunkering for which fail safe
procedures and equipment are required for
routine operations.
Fig. 1. The “Triality” [2]
Rys. 1. „Triality” [2]
Two IMO type C pressure tanks capable of
holding 13 500 m3 LNG, enough for 25 000 nm of
operation, are located on the deck in front of the
superstructure. The generators are dual fuel (LNG
and marine gas oil) while the auxiliary boilers
producing steam for the cargo oil pumps operate on
recovered cargo vapours.
Concerns
Using LNG as a fuel in shipping has been met
by growing concerns that there is a patchy approach
to research and applied rules that is leading to
potential challenges being ignored, leaving many
wondering whether or not to invest. Research into
bunkering procedures and fuel feed into ships
engines are two areas where there is still a need for
further analysis. There appears to be assumptions
over bunker loading conditions, safety criteria and
the feed into the engines that may be being overlooked, commented Andrew Alderson, consultant
at ship designers Hart Fenton.
With regards to the IGC code, the rules on how
gas carriers can store, handle and use gas as a fuel,
is currently being revised at the same time that a set
of interim guidelines on the use of LNG as a fuel,
The infrastructure
Looking to the immediate future, the main
application of LNG as a fuel would be in the
short-sea and ferry sector in the ECAs, where
gas is widely available and where there are
immediate pressures with regards to SOx and
NOx compliance.
But for LNG to be a competitive fuel, there
needs to be an appropriate LNG infrastructure.
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LNG – the dominant fuel for merchant ships by year 2025
Norway has led the way in its use of LNG as
a bunker, and as a result interest has spread to
Sweden and Denmark where various projects are
underway. The Danish Maritime Authority is
looking at how LNG infrastructure can be
developed, should owners opt for LNG as a fuel,
as Fjord Lines is on course to have its two new
ferries built with dual fuel engines and have type
C LNG tanks installed, while Viking Line has
signed up STX Finland and Wärtsilä to build
a cruise ferry to run between Stockholm and
Turku.
This interest in gas power has also popped up
in South America, where Buquebus has bought
a high-speed ferry to run off a gas turbine
engine. Capable of over 50 kts, the vessel will
operate on the River Plate. Apart from the last
project, all the other vessels being built or in
operation have received some sort of financial
incentive to get owners to make the extra capital
investment, but these will not always be
available.
One method of developing the LNG infrastructure is to have floating re-gas stations. The
concept, such as the “Energy-Bridge” vessels, has
been applied at the Northeast Gateway near Boston,
Massachusetts, and the Gulf Gateway off the
Louisiana coast, where gas is discharged into
offshore submerged buoy installations. A variation,
labelled “Gas Port” where conventional vessels
undertake a ship-to-ship discharge into a docked
Energy-Bridge unit, has been put into place at Mina
Al-Ahmadi in Kuwait, the River Tees in the UK
and Bahia Blanca in Argentina. And an Excelerate
project in Argentina, at Escobar near Buenos Aires,
is expected online in mid-2011.
Golar LNG owns and charters out floating
storage and regasification units to Petrobras and
Dubai Supply Authority. Petrobras has chartered in
Golar Spirit and Golar Winter, under 10-year time
charters, which are moored at Pecem in northeastern Brazil and Guananbara near Rio de Janiero,
respectively. There are a number of other projects
like this worldwide.
some point and form one global market price which
will be independent of crude prices.
Gas prices have decoupled from crude oil prices
in bunker, as although gas is an alternative to crude,
you need a specially designed vessel to be able to
run on LNG, and as there are not that many LNG
vessels at the moment, LNG as a fuel becomes
inelastic.
Japan is the world’s biggest buyer of LNG, but
the recent natural disaster that hit Japan saw LNG
prices jump as dealers braced themselves for the
huge demand expected to replace large amounts of
nuclear power capacity that was knocked out in the
earthquake and tsunami. The cost of UK LNG
delivered in one month increasing 7.7% in a matter
of days, with contracts traded as high as 64.5p per
therm, a two-year high.
According to CRISIL Research, the incremental
gas demand is likely to push up spot LNG prices
from around US$9/MBtu to US$13–14/MBtu in the
next 3 months. Germany’s recent decision to shut
seven atomic power reactors (7.4 GW) for 3 months
in the wake of the Japanese crisis and the resultant
increase in gas demand would drive a rise in prices
in the short term. Spot LNG prices are rising due to
tight availability, and CRISIL expects the 40%
substitution with gas-based power capacities to
boost gas demand by 6–8 Mt p/a.
Projects
BV has forecasted that LNG projects could be
worth $7Bn by 2017, as there are perhaps 20–25
such projects under discussion around the world,
with BV involved in 14 of them. However, owners
are delaying such investment until the LNG supply
in the ports is secured, plus shipowners are
demanding security that the price of LNG would be
lower than that of bunker oil in the future as well.
Golar LNG has ordered four LNG carriers worth
around $800M from South Korean shipbuilder
Samsung Heavy Industries with options for four
more, with delivery for the first four in 2013/2014.
Golar said fuel costs will be reduced because the
vessels will have dual-fuel Diesel-electric engines
rather than steam turbines.
Spot rates for LNG carriers are around $80 000
per day and FSRUs can earn around $125 000 per
day. But spot rates for LNG carriers should reach
$100 000 per day before the onset of the northern
hemisphere summer months, further boosted by
Japan’s extra demands. Although there is an immediate impact on rates, the excess of LNG in the
market will stem rates soaring over the long term.
The market
Another determining factor to using LNG is the
price. Analysts have been reporting for a number of
months that while gas prices may rise, they will not
do so to the same extent as crude oil. There are
three distinct gas prices: North America, the
cheapest, Europe and then Asia, particularly Japan,
the most expensive, but these prices will merge at
Zeszyty Naukowe 28(100) z. 1
81
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Jerzy Listewnik, Antoni Wiewióra
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Fig. 3. The „Triality” engine room layout [2]
Rys. 3. Układ siłowni „Triality” [2]
Conclusions
References
As DNV CEO Henrik O. Madsen, said: “I am
convinced that gas will become the dominant fuel
for merchant ships. By 2020, the majority of
owners will order ships that can operate on LNG”.
When it comes to the additional cost of building
a vessel like the “Triality” and the reduced cost of
operating it, he concludes: “It is possible to develop
an environmentally superior ship and be profitable
at the same time. Our best estimate is an additional
capital expenditure of 10–15% for a “Triality”
VLCC newbuilding compared to a traditional
VLCC. Even with this extra cost included, we
estimate a reduced life cycle cost equal to 25% of
the newbuilding cost for a traditional VLCC.”
However, LNG propulsion will not take off just
because it is less malignant, it will only do so when
the economics stack up. Experts predict, this is on
its way to happening. Natural gas reserves are
greater than crude oil and its price is lower.
1. Pounder’s marine Diesel engines and gas turbines.
Elsevier, 2009.
2. LNG – going for gas. MER, May 2011, 38–41.
3. FFOOKS R.: Natural Gas by Sea. Gentry Books, London
1979.
4. WOOLCOTT T.W.V.: Liquified Petroleum Gas Tanker
Practice. Brown, Son & Ferguson, Nautical Publishers,
Glasgow 1987.
The paper was published
by financial supporting
of West Pomeranian Province
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