Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

CONSTRUCTION OF WORLD'S FIRST GTT NO96 L03+ LOW BOR LNG CARRIERS IN CHINA

 GTT (GazTransport & Technigaz) : o Adnan Ezzarhouni, General Manager - GTT China – [email protected] o Hadi Farhoud, Marketing & Strategy Dept Manager – [email protected] o Gery Canler, Project & Development Manager – [email protected]

 CNPC International Russia Corporation : o Li Yingchang, Deputy General Director – [email protected] o Zhang Jun, Director of Marketing & Shipping Division – [email protected] o Ouyang Liangchen, Supervisor of Marketing & Shipping Division – [email protected]

 Hudong Zhonghua (HZ) : o Lou Danping, Chief Technical Officer – [email protected] o Xu Annan, Senior Engineer - [email protected]  COSCO shipping LNG o Zheng Zu Rong, Executive General Manager, Senior Chief Engineer – [email protected] o Song Yuan, Technical Manager – [email protected]

 MOL : o Koichi Kawanaka, General Manager LNG Project – [email protected]

 Lloyds Register Marine & Offshore (LR) : o Christopher Hughes, General Manager Business Development, LR China - [email protected]

 China Classification Society (CCS) : o Shen Shi, General Manager of CCS Rules and Technology Center – [email protected] o Fu Xihua, Marketing Manager of Gas Carrier of CCS Rules & Technology Center – [email protected]

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

ABSTRACT :

The Yamal LNG has been one of the most challenging LNG project in history, on various aspects, owing to the remote locations and harsh Arctic environment. On the shipping side, it includes the construction of 15 Arc-7 Icebreaking LNG carriers in Korea.

During the summer period, these Icebreaking LNG carriers will transport LNG from Yamal to Asia through the Northern Sea Route. However in winter, the Icebreaking LNG carriers will carry the LNG from Yamal to West Europe, and from there another series of LNG carriers will transport the cargoes to Asia through Suez Canal.

In this second series of LNG carriers consists of 11 ships, 4 of which are assigned for the LNG shipping to China, and are now under construction in CSSC Hudong Zhonghua (HZ) shipyard for MOL/COSCO joint venture and classed by LR and CCS.

In order to meet the challenging specification requirements, including a reduction in Boil Off Rate (BOR) of 30% compared to recent new builds in China, the GTT NO96 L03+ cargo containment system has been selected, representing the first application of this new technology.

The purpose of the paper is to review the background of the import of LNG into China from the Yamal project; the challenges to build such a low BOR LNG carrier in China; and how this will be achieved whilst also reducing the construction period compared to previous projects. The preparation and development of the supply chain for this new containment design, within China, are shared. The planning, adjustment, and investment needed by the shipyard to build such a new technology will also be shared. Photos and lessons learned of the first ship are also presented.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China Table of content

Table of illustrations ...... 3 1 Yamal LNG : Russian gas to Asia through shipping ...... 4 1.1 Yamal LNG background ...... 4 1.2 LNG is key for China gas demand ...... 4 1.3 Shipping features to get Arctic LNG in China ...... 5 2 LNG carrier BOR performance: A key competitiveness parameter ...... 6 3 GTT’s Membrane NO96 L03+: World’s first ...... 8 3.1 Main features of the NO96 membrane system ...... 8 3.2 Main features of the NO96 L03+ ...... 9 3.2.1 Standard: ...... 9 3.2.2 Standard and Ultra Reinforcements: ...... 10 3.3 Why N906 L03+? ...... 10 3.4 Local content development ...... 11 4 Shipbuilding ...... 13 4.1 New technology yard preparation & investment ...... 13 4.2 Construction progress improvement ...... 16 4.3 Status of current ship construction ...... 18 5 Conclusion ...... 19

Table of illustrations Figure 1: The location of the Yamal LNG project ...... 4 Figure 2: The prediction of China LNG import (Source: BP) ...... 5 Figure 3: The shipping route of the Yamal LNG project ...... 6 Figure 4 Operating profile ...... 7 Figure 5: List of LNG vessels with NO96 family technologies ...... 8 Figure 6: Description of NO96 Membrane technology ...... 9 Figure 7: Comparison of main features of NO96 family technologies...... 10 Figure 8: Sketches of NO96 L03+PFP K1 type (Left) and K2 type (right) ...... 11 Figure 9: New LNG plant of Yoke in Yixing (6 hectares) ...... 12 Figure 10: Brand new R-PUF production line ...... 12 Figure 11: Semi-automatic Prefabrication line 1 (left) & Fully Automatic Prefabrication line 2 (Right) ...... 13 Figure 12: NO96 L03 membrane mockup tank (left) and Proficiency Certificate of NO96 L03 membrane mockup by GTT (right) ...... 14 Figure 13: NO96 L03+ insulation box production line ...... 15 Figure 14: Machinery lay-out ...... 16 Figure 15: Production schedule target of the LNG carrier during dry-dock ...... 17 Figure 16: Assembly sequence of blocks ...... 17 Figure 17: First Yamal L03+ LNG carrier in dock ...... 18 Figure 18: Lifting of cargo machinery room module ...... 18 Figure 19: Completion of secondary membrane tightness test of No. 4 cargo tank ...... 19 Figure 20: “LNG DUBHE” at dry dock, during launching ...... 20

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

1 Yamal LNG : Russian gas to Asia through shipping

1.1 Yamal LNG background

The is in the northern part of the Yamalo-Nenets Autonomous Okrug region in Russia. It is one of the largest oil and gas producing provinces in the world and has estimated gas resources of over 10,000 billion cubic meters. The Yamal LNG project is an integrated production, treatment, liquefaction and marketing project located at the Sabetta, in the north-east of the Yamal Peninsula on the coast of the Ob Bay.

Figure 1: The location of the Yamal LNG project

The Project is resource based on the South-Tambeyskoye field with proved and probable reserves of 926 billion cubic meters of natural gas and 30 million metric ton of liquid hydrocarbons. The Yamal LNG plant will have four trains with total capacity of 17.4 million tonnes of liquefied natural gas per annum when fully operational. The onshore South-Tambeyskoye field can supply the Project for at least 20-years production. 96% of the LNG production capacity is sold under long-term sale and purchase agreements. The first train was operational from December 2017, and the second train from July 2018. The project is operated by JSC Yamal LNG, a joint-venture of (50.1%), TOTAL (20%), CNPC (20%) and Silk Road Fund (9.9%).

1.2 LNG is key for China gas demand

Excluding Hong Kong SAR of China and Taiwan Region of China, China’s gas demand continues to grow robustly with consumption in 2017 estimated at 240 billion cubic meters, representing growth of approximately 15.1% per annum. The key drivers of growth are high economic growth and coal-to-gas switching, particularly in the power and industrial sectors. The Chinese government requires the significant reduction of air pollution in urban centers to protect and improve the environment. Coal-fired power plants in cities are being progressively closed and replaced by gas-fired power plants: Beijing closed the last of its coal-fired power plants in March 2017. Chinese government policy continues to favor increasing the role of natural gas in the primary energy consumption.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China The potential of significant exploration and production of shale gas in China has not yet been fully demonstrated, and the development needs some time. The Russia-China agreement for the western seems to be still under discussion. Although China also has the potential to import additional gas from Central Asia/Myanmar, the timescales of these projects are uncertain. The gap between the demand and supply of natural gas will lead to a rapid growth in LNG imports. BP Energy Outlook (2018 Edition) predicts that the LNG demand of China will grow to over 106 MTPA by 2040.

The Prediction of China LNG Import 120 100

80

60 MTPA 40 20 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Year

Figure 2: The prediction of China LNG import (Source: BP)

The import of LNG into the Asia-Pacific region was about 220 million tons in 2017, making up about 73% of the world LNG trade. China is a relatively new market for LNG and begun to take volumes in 2006. Growth has been rapid, with the country importing 38 million tons in 2017, increased by 12 million tons compared to 2016. In the first half of 2018, the domestic production was 77.4 billion cubic meters, a year-on-year growth rate of 2.3%; the import of pipeline gas was 25.2 billion cubic meters, a year-on-year growth rate of 20%; the import of LNG was 23.94 million tons, a year-on-year growth rate of 50%. The three Chinese national oil companies (CNPC, Sinopec and CNOOC) have the contracts for more than 40 MTPA of LNG supply. CNPC is China’s largest supplier of natural gas with market share over 65% and is the owner of the largest majority of China’s natural gas transmission and distribution pipelines. CNPC has three LNG terminals in operation and the fourth planned. In this Project, CNPC will take delivery of up to 3 MTPA once train 2 starts up. The majority of the Project’s LNG has already been committed under long-term take-or-pay contracts and will be supplied primarily to Asian markets.

1.3 Shipping features to get Arctic LNG in China

The Project has been developed in a wild, remote Arctic region that is frozen for seven-to-nine months a year and where winter temperatures can drop as low as -50°C. Shipping operations in the harsh Arctic environment require specialized ship design for efficiency and safety. But the unique location of the Project allows for flexible and competitive logistics, enabling year-round supplies of LNG to both European and Asia-Pacific markets. During the summer navigation window (between July and November), LNG can be delivered to the Asia-Pacific through the Northern Sea Route (the “NSR”) with a shorter transportation distance. While in wintertime, LNG can be

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China transported via westward routes, through one of the European transshipment terminals, like Zeebrugge. Westbound shipments by ARC7 vessels, even in winter months, do not require icebreaker escort, whereas such escort is the policy requirement for ARC7 vessels travelling eastbound through the NSR during the November-June period. The NSR enables vessels to reach Asia-Pacific in approximate 20 days via the Bering Strait, compared with 40 days using the conventional route through the Suez Canal.

Figure 3: The shipping route of the Yamal LNG project

The Project does not include the tanker fleet required to ship LNG to the target markets. So the Project has time- chartered 15 custom-designed ARC7 ice-class LNG vessels to export its gas from the Sabetta seaport and 11 conventional LNG vessels to transport the gas from transshipment points in Europe to buyers in Asia-Pacific/South America. The ARC7 ice-class LNG vessels are designed to operate year-round from the Yamal peninsula and have the capability of breaking ice up to 2.1 meters thick. The vessels enable navigation without icebreaker support along the NSR to the westbound all year round, and to the eastbound during summer. All ARC7 ice-class LNG vessels are leased by Yamal LNG from several joint partners of various respectful ship-owners: Sovcomflot, Teekay/CLNG, MOL/CSLNG, Dynagas/CLNG/Sinotrans. The vessels were designed by the Aker Arctic Technology in Finland and built at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in South Korea. The conventional vessels, responsible for transporting LNG from transshipment terminal to final target markets, are leased from Dynagas, Teekay, MOL/COSCO LNG. Four of these conventional LNG vessels are being built at Hudong Zhonghua shipyard in China.

2 LNG carrier BOR performance: A key competitiveness parameter

Since its creation more than 50 years ago, GTT’s important R&D and innovation investments allowed continuous boil-off reduction of its systems, both on Mark and NO family. In the mid-2000s, Chinese shipyard Hudong Zonghua choose NO family when it decided to build LNG carriers for the first time, with GTT’s membrane technology. Since

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China then, HZ shipyard has delivered 19 LNG carriers all equipped with NO96 technology, insulated with perlite. With this technology, GTT was able to provide a BOR of 0.15%, way below the previous technology, NO 85 and NO88 (0.25%) built in Europe in the early 80’s.

For the Yamal project, HZ shipyard decided in 2017 to make another major leap forward with the adoption of the latest GTT NO technology, the NO96 L03+, allowing BOR to gown down to 0,1%. This reduction is especially important as the Yamal project implies long and consuming routes.

To estimate the savings, we have compared the currently under construction LNG carriers in HZ featuring 174,000 cbm LNG capacity, Dual Fuel Diesel Electric propulsion (DFDE), with 0,1% BOR versus 0,15% BOR if they had used NO96 perlite technology.

The main assumptions are the following:  Operating days per year: 345 days  Average speed: 16.5 knots laden, 15.4 knots ballast (operating profile ranging from 0 to 21 knots)  Route distance: 10.800 nautic miles  LNG price: $10/mmbtu  Discount rate: 8% (for net present value calculation)

25%

20%

15%

10% Share at given Sharegiven at speed

5%

0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Speed - knots

Laden Ballast

Figure 4 Operating profile

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China For these four vessels, we estimate the total saving to represent around $100M net present value for a 20 years period corresponding to their charter party with Yamal LNG. For one vessel, this represents $1,3M savings per year and more than $220k per roundtrip. These savings are sensitive to vessels speed; an operating profile more centered on lower speeds would even more increase the savings.

Moreover, GTTs technology allows to lower passive BOR (vs. active BOR with reliquefaction systems) which is especially valuable when the vessel is at very low speed or simply stopped, for instance, waiting for a terminal to be ready to receive the cargo. We should stress that this situation could occur even more in China where the trades are currently developing faster than the infrastructures. We can estimate that a fully loaded LNG carrier of 174.000 cbm waiting without fuel consumption would save around $46k per day with a 0.1% cargo containment system versus a 0.15% one.

3 GTT’s Membrane NO96 L03+: World’s first

3.1 Main features of the NO96 membrane system

The NO96 membrane system is a fully redundant membrane and insulating system, directly supported by the ship’s inner hull. It includes two identical metallic Invar® membranes, a Fe-36%Ni alloy, and two independent birch plywood insulation layers. This modular system calls for standard prefabricated components that can accommodate any shapes and capacities of tanks. NO96 benefits from a strong position in the market and 244 LNG carriers* are equipped or will be equipped with this technology and its evolutions: NO96, NO96 GW, NO96 L03 and now NO96 L03+.

N096 NO96 GW NO96 L03 NO96 L03+ Nbr of vessels at sea and under 140 85 15 4 construction Figure 5: List of LNG vessels with NO96 family technologies

Approved by all major classification societies, the dual Invar® membrane technology takes advantage of almost 50 years of experience at sea. Plywood and perlite are easily procured, available worldwide and low cost raw materials. The two independent insulation spaces are continuously filled with nitrogen gas. The integrity of both membranes is permanently monitored by detection of hydrocarbon in the nitrogen, making NO96 a very safe system.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

Figure 6: Description of NO96 Membrane technology

3.2 Main features of the NO96 L03+

For a better thermal efficiency, GTT have created the system NO96 L03+. The “L” means layer and 03 the numbers of layers. To provide an efficient thermal insulation for storing the LNG, the new system has three layers: 1 layer in the primary space (space in between the two Invar membranes) and 2 layers in the secondary space (space between the inner hull and the secondary Invar membrane). The “+” is to state the new evolution of the previous system NO96 L03 which was developed by GTT in 2012 for a first step to reduce the BOR of NO96 systems. To meet the requirements for the system to sustain the various loads of the cargo, three levels of reinforcement have been considered for the system NO96 L03+.

3.2.1 Standard:

This is the configuration for areas without severe sloshing effect. The primary boxes are very similar with the standard NO96 primary boxes. The two layers of the secondary panels are made with reinforced polyurethane foam (R-PUF). These two secondary layers are separated by an intermediate plywood board. Standard NO96 couplers to fix the panels and boxes are used thanks to plywood pillars at the corners of the secondary panels. The compatibility of the couplers with conventional NO96 boxes is necessary as far as boxes near the dihedrals of the tank are conventional NO96 boxes (filled with Glass wool for a better thermal efficiency).

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China 3.2.2 Standard and Ultra Reinforcements:

These are the reinforcement for areas with severe sloshing effects. The primary boxes are very similar with the corresponding NO96 primary boxes (Standard reinforcement, Ultra and/or Ultra+ reinforcements) The two layers of the secondary panels are made with reinforced polyurethane foam (R-PUF) for the layer above the inner hull and with plywood for an intermediate box below the secondary Invar membrane. Standards NO96 couplers to fix the panels and boxes are used thanks to plywood pillars at the corners of the secondary panels. These pillars are stronger for Ultra reinforcements.

3.3 Why N906 L03+?

In order to meet the challenging specification requirements, including a reduction in BOR of 30% compared to current China new builds, the GTT NO96 L03+ cargo containment system has been developed in order to reach a daily boil-off rate of 0.1%.

NO96 containment systems comparison:

NO96 NO96 GW NO96 L03 NO96 L03+

BOR (*) 0.15% 0.125% 0.11% 0.10%

Main Glass-wool and insulating Perlite Glass-wool R-PUF 130 kg/m3 material

Membranes Invar® 0.7 mm

Primary Boxes: Plywood Boxes with bulkheads : Support Secondary Boxes: Plywood Plywood Secondary Panels : R-PUF & plywood

Thickness 530 mm (Primary box: 230 mm + secondary level: 300 mm)

(*) BOR = Daily Boil-off Rate is project dependent due to vessel size arrangement and reinforcement

Figure 7: Comparison of main features of NO96 family technologies

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

3.4 Local content development

The NO96L03+ is a world first application. Therefore any insulating panel vendor needs to develop their own production for this project.

One of the main materials of NO96 L03+ membrane CCS is Polyurethane Foam Panel (PFP), for which demanding performance requirements are mandated: no deformation is permitted whilst also maintaining strength within the temperature range of -163°C to +80°C, and at the same time achieving a low heat conductance coefficient. The supply of this material is now mainly supplied by Hankuk Carbon and Dongsung Finetec from South Korea. During the implementation process of this project, Jiangsu Yoke Technology Co., Ltd., through many times of repeated adjustment of formula and fabrication process improvement, finally secured GTT certificate of PFP in September 2018.

Figure 8: Sketches of NO96 L03+PFP K1 type (Left) and K2 type (right)

It has been decided to procure the foam panel of the first ship from Korea, to “Hankuk Carbon”, and the three others ships to Chinese GTT qualified factory “Jiangsu Yoke”.

Jiangsu YOKE was established in Yixing, Jiangsu province, with core business the production of blowing agents & catalysts for PU foam. In 2002 a new business Unit “YOKE Technology” was created for the production of Flame Retardants for PU and thermoplastics. In 2014, Yoke decided to invest on a brand new factory dedicated to LNG, and especially the Reinforced Polyurethane foam used on GTT technologies such as Mark III Membrane LNG vessels and GST Membrane onshore tank.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

Figure 9: New LNG plant of Yoke in Yixing (6 hectares)

The development of the insulating panels was made in two steps. The first step was to produce just the raw material of the foam. Yoke invested in a brand new foam production line, and got GTT qualification in 2016.

Figure 10: Brand new R-PUF production line

Yoke’s first project was production of R-PUF foam to Samsung Heavy Industries. The R-PUF production was completed by YOKE in February 2018 and the insulating Panel production completed by DongSung Finetec in June 2018. For the 4 Yamal ships under construction at HZ shipyard, Yoke needs to have, in addition to the foam production line, a dedicated prefabrication.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

Figure 11: Semi-automatic Prefabrication line 1 (left) & Fully Automatic Prefabrication line 2 (Right)

Yoke started the R-PUF production in May 2018 and the insulating panel assembly in July 2018, with different panel type according to GTT design.

From L03+ R-PUF production, YOKE has successfully entered in the very limited and state-of-the-art GTT NO96 CCS industry, with its unique high intelligent and automatic production methodology.

Indeed, high intelligent and automatic production line still has its own weakness, such as the high level training of operators and digital maintenance. There must be some others we still don’t know yet. As the ultimate target is not only to save cost and time, but to always achieve highest accuracy and quality with lowest mistakes, special care on supervision and improvement have to be implemented.

COSCO LNG as LNG ship owner and operator, has encouraged GTT to combine its new technology development and application with good and accountable Chinese local industries, so that to push and support China’s LNG newbuilding industries to continuously improve and growing up, then to satisfy the demand and requirement from ship-owners and the energy market.

4 Shipbuilding

4.1 New technology yard preparation & investment

To reach the low boil-off requirement raised by the ship owner, latest GTT NO96 L03+ membrane type cargo containment system (CCS) is adopted for this project, with boil-off rate reduced to 0.10%. Height of primary insulation box remains 230 mm, filled internally by glass wool instead of perlite used by standard NO96 system. Total height of secondary insulation remains 300 mm, but it is divided into two layers, detailed compositions are as follows:  in non-reinforced area:

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China One layer is thin Polyurethane Foam Panel (PFP) with a thickness of 80 mm, and the other is thick PFP with a thickness of 220 mm, and both are connected by glue. PFPs are outsourced and the connection of thin PFPs and thick PFPs are completed by the maker and then delivered to the shipyard as a whole.  in reinforced area: One layer is thin insulation box with a thickness of 92 mm, filled internally by glass wool, and the other is PFPs with a thickness of 208 mm, and both are connected by stapling. PFPs are outsourced and connection of thin insulation box and PFP are conducted by the shipyard.

Since taking the order for the first LNG carrier, Hudong-Zhonghua has adopted standard GTT NO96 membrane type design for the cargo containment system (CCS), acquiring rich construction experience and technical experience in terms of LNG CCS construction techniques and specialty process tooling equipment area. Hudong- Zhonghua has also been following and researching the latest NO96 membrane type techniques, completing construction of an NO96 L03 mock-up tank in June 2016, for which they obtained GTT approval certification.

Figure 12: NO96 L03 membrane mockup tank (left) and Proficiency Certificate of NO96 L03 membrane mockup by GTT (right)

GTT NO96 L03+ insulation boxes are filled with glass wool instead of perlite for standard NO96 insulation box. In addition, secondary mid insulation box height is just 92 mm. The previously used insulation box production lines were not able to meet the automatic production demands of NO96 L03+ insulation boxes. Hudong-Zhonghua has subsequently made the necessary upgrades to the insulation box production line and obtained GTT’s approval.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

Figure 13: NO96 L03+ insulation box production line

Dual-fuel low speed engine direct propulsion method is adopted for this project. Compared with dual-fuel electric propulsion system, the dual energy transformation of engine-electricity-propulsion motor is avoided, thus, greatly improving propulsion efficiency by up to 6.5%. In addition, two stroke low speed engine efficiency is higher than four stroke mid-speed engine, so oil and gas consumption of this project is significantly lower. The main engine and generators are all equipped with SCR, which can meet the emission requirements of NOx Tier III regulations.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

Figure 14: Machinery lay-out

4.2 Construction progress improvement

Construction period of this series of LNG carriers is the shortest among LNG carriers ever built by Hudong Zhonghua shipyard, with almost ten months schedule reduction compared to first LNG carriers built. The Project Team conducted comprehensive planning optimization on various construction stages and achieved breakthrough progress. The main measures are as follows:

 Erection planning

The duration of the entire cargo tank hull construction is controlled within 50 days.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

The 20th day since in-docking

Erection of No. 4 tank completed

The 30th day since in-docking

Erection of No. 3 tank completed

The 40th day since in-docking

Erection of No. 2 tank completed

The 50th day since in-docking

Erection of No. 1 tank completed

Figure 15: Production schedule target of the LNG carrier during dry-dock

11 W5 9 10

W3 7

8 6

5 W2

W1

BL 3 1 2 4 Figure 16: Assembly sequence of blocks

 Strengthening test of ballast tank

In order to shorten the construction period at key side, and to enable the Membrane containment system work start earlier to the construction sequence, strengthening test of the ballast tanks is conducted in semi-ship floating state during the in-dock period. Strength test of ballast tank during the in-dock period were conducted to No.1 and No.2 ships of this project at the end of July and October of 2018 respectively, and the strengthening test was completed at least three months in advance compared with previous projects.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

Figure 17: First Yamal L03+ LNG carrier in dock

 Grand assembly pre-outfitting of cargo machinery room

As opposed to the previous method which featured small modules produced locally and most part are bulk pipes for cargo machinery room of the LNG carrier, the cargo machinery room of this project is constructed using an integral module fabrication and lifting mode, erecting module frame at the dock side, assembly and welding of the cryogenic pipes, cryogenic equipment and ambient temperature pipes as per working sequence in advance, thus considerably reducing the inconveniences due to on-board handling and installation of bulk pipes and worksite assembly, shortening the integration period of the cargo machinery room piping. It is a major process improvement in LNG carrier building history.

Figure 18: Lifting of cargo machinery room module

4.3 Status of current ship construction

As of Dec 2018, for No.1 ship of this project, the pre-fitting status of the engine room reached 95%; 50% of the cryogenic system installation has been completed; and nearly 50% of the cargo tank insulation layer installation has been completed.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China

Figure 19: Completion of secondary membrane tightness test of No. 4 cargo tank

5 Conclusion

Gas consumption in China continues to grow, driving significant increases in the volume of LNG imports. This growth is expected to continue as government policy drives the transition from coal to gas power generation in order to reduce air pollution. For LNG imports into China from the Yamal project, in addition to the ARC7 Icebreaking LNGCs, a fleet of “conventional” LNGCs is also required to provide cost effective transport of the LNG cargoes for the relatively long ice-free voyages from European transhipment locations. Further, the relatively long voyage times increase the importance of minimising boil off rates, and therefore the GTT NO96 L03+ system has been selected for the 4 Yamal project ships under construction at Hudong Zhonghua shipyard – the first application of this new containment system globally.

Construction of the new LO3+ system required both the supply chain, and the shipyard to develop new products, processes and capabilities. The foam panels for the first ship have been procured from Korea, with the subsequent ships being supplied from a new facility in China. The shipyard’s insulation box production line has also been upgraded to produce the LO3+ boxes.

The shipyard have also implemented various other changes to both the design of the ship, and the production process. These ships will be the first slow speed direct drive, dual fuel powered LNGCs constructed in Hudong Zhonghua, and will reduce fuel consumption by up to 16% compared to their previous DFDE ships, whilst also complying with Tier 3 NOx emissions regulations. Several other improvements to the construction methodology have also been implemented by the shipyard, achieving a reduction in build period of nearly 10 months, despite the various new technologies and firsts being employed on these ships.

Construction of world's first GTT NO96 L03+ low BOR LNG carriers in China At the time of submission, construction of the first ship is well progressed with the engine room pre-fitting materially completed, and the cargo tank outfitting nearing half way. Delivery of the first ship is scheduled for 28th December 2019 and the project team look forward to obtaining the results of the ship performance, fuel consumption and BOG rate.

Compared with previous LNG carriers, construction progress has been remarkably improved and the quality and schedule of the carrier construction has been effectively ensured, while being world first to implement GTT’s NO96 L03+ and with new key supplier in China for the insulating panels.

Figure 20: “LNG DUBHE” at dry dock, during launching