Annual Report and Accounts 2018

Society of International Gas and Terminal Operators Ltd

Continually promoting best practice in the liquefied gas shipping and terminal industries for 40 years SIGTTO Purpose SIGTTO has been organised to encourage the safe and responsible operation of liquefied gas tankers and marine terminals handling liquefied gas; to develop advice and guidance for best industrial practice among its members; and to promote criteria for best practice to all who have responsibilities for, or interest in, the safety of gas tankers and terminals.

SIGTTO Vision SIGTTO will continue to be recognised as the gas shipping and terminal industry body - a modern centre of industry expertise - with all appropriate resources available to address industry technical and operational issues. It will be the industry advocate for the proactive enhancement of safe and sustainable international gas terminal and shipping operations through the provision of consistent guidelines and measures. Contents SIGTTO Annual Report 2018

Contents

5 President’s report 13 SIGTTO Secretariat 27 Industry regulations David Furnival presents The Society’s Secretariat and standards an overview of outstanding office staff SIGTTO participation progress in a notable year in the evolving regulatory 14 SIGTTO committees regime governing gas 7 General Manager’s report and subcommittees Andrew Clifton looks Progress made by committees 30 New publications back on important SIGTTO and sub-committees in 2018 Review of latest industry best developments in 2018 practice guidelines from SIGTTO 16 Panel Meetings and 8 SIGTTO members Regional Forums 32 Publications list Full and Associate Members Busy SIGTTO meeting schedule Paid publications as of 31 December 2018 facilitates two-way dialogue available from SIGTTO

9 Benefits of SIGTTO 18 LNG carrier fleet in numbers 33 Financials membership The global LNG carrier Statement of Comprehensive Listing of the advantages that fleet breakdown, including Income for the year Society membership can bring 2018 deliveries and orders ended 31 December 2018

11 SIGTTO in figures 20 The industry year in review 35 Inside Back Cover A statistical review of SIGTTO’s Gas shipping and Photo credits membership and terminal 2018 timeline accomplishments 24 LPG carrier fleet in numbers 12 SIGTTO directors The global LPG carrier fleet SIGTTO directors and their breakdown, courtesy companies, as of 31 VesselsValue December 2018 SIGTTO Annual Report and Accounts 2018 Accounts and

3 SIGTTO Annual Report and Accounts 2018 Accounts and

Making shipboard preparations to ensure compatibility with terminal arrangements for an upcoming cargo transfer operation 4 President’s Report

Society’s sound structure and professionalism smooth President’s role I am pleased to present SIGTTO’s 2018 annual report, the last of a trio compiled during my three-year tenure as the Society’s President

The selection of 42 New Broad Street receipt by Chris Clucas, my colleague and will be submitted to the SIGTTO Board as the site of SIGTTO’s new London former SIGTTO GPC chair, of Gastech’s for approval during 2019 and 2020. lifetime achievement award. Chris liaison office, which the Secretariat Working groups currently active under has devoted most of his professional moved into in July 2018, has proven the auspices of SIGTTO’s HEC have three career to gas shipping and is one of to be well founded. The smart and priority areas in focus. They are cargo the industry’s foremost experts. Such well-equipped working environment control room ergonomics, gap analysis of recognition by his peers was a worthy has been welcomed by both staff and competency guidelines and shore staff reward for Chris who is acknowledged visitors and the impressive meeting competencies. HEC’s first document, to be a consummate teacher and one facilities have been well utilised, Recommendations for Management always willing to share his knowledge. saving cost and increasing efficiency. of Cargo Alarm Systems, has recently Maintaining engagement with SIGTTO’s been issued as a free publication. Meetings of the working groups of the diverse and wide-ranging membership Society’s General Purposes and Human SIGTTO celebrates its 40th anniversary is important and 10 Regional Forums Element Committees (GPC and HEC) are in 2019 and, with the growth in LNG were staged during 2018 to extend the now held at the venue and it is planned to production and seaborne transportation dialogue out-reach. The gatherings took hold one of the Board of Directors meetings set to accelerate, the Society’s role in place in Oslo, Singapore, Athens, Buenos there in 2020. Some SIGTTO members promoting safe and reliable operations Aires, Tokyo, Perth, Shanghai, Dubai have also found the facilities useful for their has never been more relevant or needed. and twice in Houston. Regional Forums own meetings, evidence that the availability I am confident that with the combination provide an excellent opportunity for the can be a valuable benefit of membership. of modern facilities and resources, the Secretariat to meet many of the Society’s Secretariat and membership expertise and The Society’s 64th Panel Meeting was members and get direct feedback on a well-structured strategic framework of held in London in April, hosted by Smit important issues, including regional what needs to be achieved, the Society Lamnalco. Featuring a technical visit to developments that could have relevance is well placed to remain at the forefront HR Wallingford, the event was marked internationally. Such engagement at of liquefied gas shipping safety. If we by excellent participation and positive a more local level helps illuminate risk can continue to expand membership and feedback about content and organisation. exposure within the industry, which in generate enthusiastic participation in the turn assists in defining mitigating actions The spring 2018 Board meeting was held various committees and working groups, that will be captured in future revisions in the Isle of Man, hosted by Bernhard SIGTTO’s core purpose will be achieved. of the Society’s overall Strategic Plan. Schulte Shipmanagement. The autumn On a personal note I will be stepping Board and Annual General Meetings SIGTTO has remained remarkably down as President in November 2019 were held in Doha, hosted by Nakilat. productive over the years, with several and handing the reins over to the current Both events were completed successfully working groups active at any one time and Vice-President, Steffen Jacobsen, who I with a high proportion of Directors a newly established sub-committee under know will do an excellent job. It has been an present. SIGTTO’s Board has been an its umbrella. The new body, known as the absolute privilege serving as the Society’s important contributor to the Society’s Floating LNG Installations Sub-committee, President and one of the highlights of success and the governance and advice has responsibility for what is currently one my shipping career. I would like to thank provided by the Directors over many of the most challenging and innovative my fellow Directors for their trust and years has helped mould an organisation sectors of the gas shipping and terminal support and also recognise the fact that that remains focused on delivering industry. The Floating LNG Installations the professionalism and competence effective safety guidance to the industry Sub-committee has three working groups, of Andrew Clifton and his team have and value for money to its members. covering the topics of site assessment,

made my tenure very straightforward. SIGTTO Annual Report design criteria and operational guidance

The 2018 Gastech event was held in 2018 Accounts and for nearshore/offshore LNG assets. Barcelona and SIGTTO hosted a joint exhibition stand with the Society’s The currently active GPC working groups publishers, Witherbys. The inclusion of are prioritising the development of updated a meeting room on the stand that could guidance on propulsion and reliquefication be booked for networking proved very systems, gangways, pressure relief valves David Furnival popular with members. One of the most and emergency shutdown systems. The SIGTTO President notable aspects of the event was the documents emanating from these groups August 2019 5 Starting life as Ben Badis in 2010, the 177,000 m3, MOL-operated Spirit of Hela loaded Papua New Guinea’s first LNG export cargo in May 2014 SIGTTO Annual Report and Accounts 2018 Accounts and

6 General Manager’s Report

Establishing a sound base for SIGTTO’s future The move to spacious and customised new premises represented a key milestone for the Society in 2018

During 2018 five new members joined International Safety Management (ISM) conferences. SIGTTO maintained its usual SIGTTO and seven resigned. As of 31 Code, the Code on Alerts and Indicators, high profile at Gastech 2018 in September December 2018 we had a total of 136 the International (IGC) Code in Barcelona, where I once again chaired full members and 45 associates for a and the IEC 62682 standard. Alarm the conference’s shipping session. total membership of 181. The Society has management is a good example of how I similarly was in the chair for the shipping members in 50 countries worldwide. human element considerations can lead session at LNG 2019 in April in Shanghai, an to improved safety performance. The SIGTTO Board of Directors met three event which tied in with SIGTTO’s 79th GPC times during 2018, as per the Society’s Hosted by Smit Lamnalco, SIGTTO’s 64th meeting. The 80th GPC gathering will also byelaws. The spring Board meeting, Panel Meeting was held in London in April, coincide with a major industry conference, kindly hosted by Bernhard Schulte in the days following the GPC’s spring in this case Gastech 2019 in September in Shipmanagement, was held in the Isle of 2018 gathering in the same city. There Houston, where I will once again lead the Man while the autumn Board and Annual was no autumn 2018 Panel Meeting due shipping session discussions. Because of General Meetings took place in Doha, to the clash with Gastech 2018 event in LNG 2019 and Gastech 2019, there are no Qatar where Nakilat was the host. Barcelona. SIGTTO Panels represent the SIGTTO Panel Meetings scheduled in 2019. My involvement with Gastech has recently The Society is registered in Bermuda as main meeting forum for the members, and been extended as I am now also co-chair a “not-for-profit” entity. However, we are the spring 2018 Panel, like all the other of the event’s technical committee. allowed to retain surplus as reserves and events in the series, was well attended. each year we set the budget to generate a SIGTTO’s Regional Forum meetings In addition to the normal two GPC, two small surplus which goes to reserves. The continue to be held on a regular basis board of director and two HEC meetings reserve level we target is about one year’s in various locations around the world. scheduled for 2019, SIGTTO also plans to operating costs and we are comfortably The timing of such meetings is largely stage 12 Regional Forums during the year. in excess of this target. The Society’s dictated by the members themselves. The Society has also been pleased to finances remain on a sound footing. A key focus for the Secretariat in 2018 announce a number of new Secretariat SIGTTO’s General Purposes Committee was the office move from St Helens Place, appointments recently. Erin Rydings, (GPC) and Human Element Committee where we had resided for 25 years, to joined us as receptionist in mid-2018 (HEC) manage the Society’s affairs. GPC the new premises a short distance away, and more recently we’ve welcomed met twice in 2018, in London in April and also in the traditional shipping area of the Laura Else as technical support Barcelona in September in conjunction City of London. Our new location is much executive and Uluc Kaypak as technical with the Gastech event, while HEC also more suited to our developing needs, as it adviser on secondment from Shell. convened twice during the year, with allows for staff expansion and offers better On 10 September 2019 SIGTTO will both meetings being held in London. The resources, including a large meeting room. Society maintains a full programme of be holding a liquefied gas shipping activities, most of which are addressed by The newly laid out and decorated office forum followed by the 40th anniversary working groups established by the two has exceeded all expectations and I am reception in London to celebrate four committees and populated by experts confident these premises will serve the decades of Society accomplishments. selected from the member companies. Society well for many years to come. The Society continues to be the principal We have welcomed many of you at the HEC is a relatively new SIGTTO voice for the liquefied gas industry. As new location since we moved in July SIGTTO General Manager, I look forward body, having held its first meeting in 2018, including those attending SIGTTO September 2016. In 2018 the committee immensely to 2019, meeting and working meetings in our conference room and produced its first publication. Entitled with the membership. Our industry is visitors simply passing through on trips Recommendations for Management of in the midst of a particularly dynamic to London. We look forward to seeing phase, making it a very exciting and Cargo Alarm Systems, it recommends the SIGTTO Annual Report more of the membership whenever challenging time to be in this role.

implementation of alarm management 2018 Accounts and it is possible for you to stop by. philosophies for gas carrier cargo alarm systems by encouraging shipowners to The Secretariat maintains a programme work with system designers, classification of external engagements to promote societies and shipyards to create a cargo the Society’s profile. These include alarm management system on each speaking to various bodies and chairing . The information in this publication and presenting papers at conferences Andrew Clifton is based on existing philosophies in the such as Gastech and the LNG series of General Manager August 2019 7 Membership

SIGTTO members (as at 31 December 2018)

Full Members

Aegis Logistics Ltd Excelerate Energy LP NYK Line ( Kaisha) AES Andres Exmar NV Oiltanking Antwerp Gas Terminal NV Alphagas SA ExxonMobil - SeaRiver Maritime OLT Offshore LNG Toscana SpA Angola LNG Ltd Fluxys LNG Oman LNG LLC Angola LNG Marketing Freeport LNG Development LP Osaka Gas Co Ltd Anthony Veder Rederijzaken BV GasLog LNG Services Ltd Pertamina Transportation LNG - JMG Atlantic LNG Company of Gate Terminal BV Petrobras Transporte SA – Transpetro Trinidad & Tobago Gazocean Petronet LNG Ltd Avance Gas Holding Ltd Geogas Maritime SAS POSCO Bahia de Bizkaia Gas SL GNL Quintero SA Prime Gas Management Inc Bernhard Schulte Shipmanagement Ltd Golar Management Norway AS Pronav Ship Management B-Gas Ltd Golden Pass LNG PT Donggi Senoro LNG BP Berau Ltd Höegh LNG PTT LNG Company Ltd BP Shipping Ltd Hyproc Shipping Company Qatar Gas Transport Company Ltd Brunei LNG Sdn Bhd Hyundai LNG Shipping Co Ltd Qatar Petroleum Bumi Armada Berhad Iino Kaiun Kaisha Ltd (Industrial Cities Ports) BW Gas AS Ineos Operating Company Ltd BW LPG Ltd Inpex Corporation QCLNG Operation Company Pty Ltd Calor Gas Ltd International Gas Transportation Co Ltd RWE Supply & Trading GmbH Cameron LNG Iwatani Corporation Santos GLNG Canaport LNG Japan Petroleum Exploration Co Ltd Saudi Arabian Oil Co (Saudi Aramco) Centrica LNG Company Ltd Jero Co Inc SCF Management Services (Dubai) Ltd Chemgas Shipping BV JXTG Nippon Oil & Energy Corporation Sempra LNG Cheniere LNG Inc Kansai Electric Power Co Inc Shell International Trading Chevron Shipping Company LLC Kawasaki Kisen Kaisha Ltd & Shipping Co Ltd China LNG Shipping Kinder Morgan Inc Shipping Corporation of India (International) Company Ltd Knutsen OAS Shipping Shizuoka Gas Co Ltd Chugoku Electric Power Co Inc Koch Shipping Pte Ltd Singapore LNG Corporation Pte Ltd ConocoPhillips Global Marine Korea Gas Corporation SK Shipping CPC Corporation, Taiwan Kuwait Co SAK Sonangol Marine Services Inc DESFA Hellenic Gas Transmission Latsco Marine Management Inc South Hook LNG Terminal Co Ltd System Operation Lauritzen Kosan A/S Stena LNG Services AB Dorian LPG Management Corp LNG Japan Corporation Synergy Maritime Pvt Ltd Dragon LNG Ltd LNG Shipping SpA Teekay Marine Solutions (Bermuda) Ltd Dubai Supply Authority Malaysia LNG Sdn Bhd Teekay Shipping Dunkerque LNG Maran Gas Maritime Inc The Bahrain Petroleum Dynagas Ltd Marubeni Corporation Company BSC (Closed) Egegaz Anonim Sirketi Meiji Shipping Co Ltd Thenamaris LNG Egyptian Operating Company for MISC Bhd TMS Cardiff Gas Ltd Liquefaction Projects Mitsubishi Corporation Toho Gas Co Ltd Elengy Mitsui & Co Plant Systems Ltd Tohoku Electric Power Co Inc

SIGTTO Annual Report Empresa Naviera Elcano SA Mitsui OSK Lines Ltd Tokyo Gas Co Ltd

and Accounts 2018 Accounts and Enagas Transporte SAU Naftomar Shipping & Trading Co Total SA Energy Transfer Partners National Gas Shipping Company Ltd Uniper Global Commodities SE Enterprise Product Partners LP National Grid Grain LNG V Ships Ltd Etki Liman Isletmeleri Dogalgaz Nigeria LNG Ltd Wilhelmsen Ship Management Sdn Bhd Ithalat Ve Ticaret AS Norgas Carriers Private Ltd Woodside Energy Ltd Evergas A/S Northern Marine Management Ltd YPF SA

8 Membership

Associate Members

ABS GTT Training Ltd Polskie LNG SA Anadarko Petroleum Corporation Guangdong Dapeng LNG Co Ltd Port of Rotterdam Authority Babcock International Group Hazira Port Private Ltd Rimorchiatori Riuniti Spezzini Boluda Towage and Salvage Jordan Cove LNG LLC – Imprese Maritime Bureau Veritas Marine & Offshore Korean Register Saga LNG Shipping Pte Ltd China Energy Ship Management Co Ltd Kotug International Single Buoy Moorings Inc ClassNK Kuwait Integrated Petroleum Smit Lamnalco CNOOC-Fujian LNG Co Ltd Industries Co Steelhead LNG Corp Combined Marine Terminal Lloyd’s Register Svitzer A/S Operations Worldwide NV LNG Canada Development Inc Toshiba America LNG Corporation DNV GL Maritime and Port Authority Venture Global LNG Inc ElectroGas Malta Ltd of Singapore Vitol Services Ltd ExxonMobil PNG Ltd Maritime Safety Queensland Warsash Maritime Academy FLEX LNG Milford Haven Port Authority (Southampton Solent University) Fratelli Neri SpA Moran Towing Corporation Western Concessions Pvt Ltd Gazprom Marketing & Trading NextDecade LLC Woodfibre LNG Ltd Singapore Pte Ltd Polish Oil and Gas Company

BENEFITS OF SIGT TO MEMBERSHIP

SIGTTO members are actively encouraged to promote membership when dealing with any new players in the industry. Please direct them to our website and to the London Liasion Office for further details of how to join.

In addition to the credibility in the n Access to the Technical Advisers in industry that membership brings, the London Liaison Office who can give SIGTTO members benefit by: advice and obtain advice, on behalf of a member, from within the Society n Access to information that is n Participating in discussion forums exclusive to members, such as casualty with other members each year on topics information and industry statistics of particular and mutual interest n Regular updates on matters affecting n New members receive a copy the industry such as legislation, of all publications, free of charge, either new or pending, technical produced by SIGTTO or operational developments n Free access to the LNGwebinfo n Access to the very comprehensive technical portal for updated LNG information SIGTTO Annual Report and Accounts 2018 Accounts and library maintained in the London Office as required to conduct compatibility n Submitting proposals for projects and studies. This information is restricted to studies to the General Purposes Committee members of SIGTTO and GIIGNL only

9 SIGTTO Annual Report and Accounts 2018 Accounts and

Malaysia, one of the world’s largest LNG exporters, began importing cargoes in 2013; first, here at Malacca, and, more recently, at Pengerang 10 SIGTTO in Figures

Years GPC Full and since SIGTTO Meetings to date associate established 80 members 40

181 Countries with SIGTTO Year members admitted to IMO Major publications in 50 last 5 years 1983 8 Attendance at South Ameri can Regional Forum Regional Forums GPC Buenos Aires Sept 2018 scheduled for 2019 members 35 12 95

SIGTTO Members’ Declared Assets

Total Number of 1055 Declared Assets

Number of 67 LPG Terminals

Number of 92 LNG Terminals

Number of SIGTTO Annual Report 388

LPG Carriers 2018 Accounts and Type of Declared Asset of Declared Type

Number of 508 LNG Carriers

0 200 400 600 800 1000 1200 Number of Declared Assets

Sources: GIIGNL and SIGTTO 11 Director’s List

SIGTTO Board of Directors (as of 31 December 2018)

The isle of Man was the venue for spring 2018 meeting of the SIGTTO Board of Directors

Mr David Furnival Bernard Schulte SM [President] Mr Raja Sager Muniandy MISC Mr Masayuki Ishida Jera [Vice President East] Mr Abdullah Al-Sulaiti Qatar Gas Transport Mr Steffen Jacobsen Evergas [Vice President West] Mr Hisaichi Yoneyama Osaka Gas Mr Mark Fortnum BP Shipping Mr Takashi Hashimoto Mitsui OSK Lines Mr Luc Gillet Total SA Mr Riju Cherian BW Gas Mr Stephan Tschudi-Madsen Höegh LNG Mr Iain Relf Teekay Shipping Mr George Paul Perantzakis Naftomar Mr Emilio Tsocalis SeaRiver Maritime/ExxonMobil Mr Akira Kono NYK Line Ms Katherine Trauth Shell Mr Lloyd Bland Chevron Shipping Mr Peter Pearman Conyers Dill & Pearman Mr Paul Oliver International Gas Transportation Mr Edwin Mortimer Conyers Dill & Pearman [Secretary] SIGTTO Annual Report and Accounts 2018 Accounts and

When the Board of Directors gathered in the Qatari capital of Doha for their autumn 2018 meeting, they had to acclimatise to somewhat higher temperatures than those encountered on the Isle of Man 12 Secretariat Today

SIGTTO Secretariat Staff

Andrew Clifton Cherian Oommen Rob Farmer General Manager Technical Adviser Technical Adviser

Uluc Kaypak Ian Harrison Dave Ervin Technical Adviser IMO Representative Consultant Technical Adviser SIGTTO Annual Report and Accounts 2018 Accounts and Susan Humphrey Laura Else Erin Rydings Membership Manager Technical Support Executive Receptionist

13 Committees and Subcommittees

SIGTTO committees expand work scope

The new Floating LNG Installations Subcommittee’s first project involves three working groups jointly drafting a master set of guidelines

In recent years SIGTTO’s General these projects are effectively the best Floating LNG installations Purposes Committee (GPC), the technical practice procedures, recommendations Tasked with considering the many body that has traditionally originated and standards that guide the aspects of the rapidly expanding and coordinated all the internal industry’s day-to-day operations. fleet of floating LNG , projects generated by the Society, has storage and production vessels, the GPC and HEC both meet twice a year been joined by the newly established SIGTTO Subcommittee for Floating and report to the SIGTTO Board. Smooth Human Element Committee (HEC). LNG Installations held its inaugural interfacing arrangements between meeting in February 2018 and gathered The decision by SIGTTO’s Board of the committees are an integral part of twice more during the year, in May Directors to form the Human Element their modus operandi. For example, and December. At these sessions the Committee recognises the critical the HEC chair is also a GPC member Subcommittee’s terms of reference importance of the human factor and and vice versa with the GPC chair. (ToR) were completed and approved, training in gas carrier and terminal At the time that HEC was formed in 2016, and Ed Scott of Excelerate Energy was operations as part of the ongoing effort the SIGTTO directors also recognised that appointed to chair the Subcommittee. to sustain a safety performance which to there was also a need to create a range of date is unmatched by any other maritime The Floating LNG Installations subcommittees to support and augment sector. The HEC’s remit includes, but is Subcommittee identified three GPC and HEC. Such subsidiary bodies SIGTTO Annual Report not limited to, competency and training, specific areas where participants in would recognise the increasingly diverse and Accounts 2018 Accounts and design and ergonomics and the human the floating LNG sector would derive nature of the liquefied gas shipping and element side of incident investigation. benefit from the speedy availability of terminal sector and the extension of industry best practice guidelines, and Completion of new project work identified the liquefied gas supply chain into new three working groups were formed to by GPC and HEC is carried out by working areas currently taking place. The first develop the required documentation. groups comprising relevant experts from of the new SIGTTO subcommittees, on amongst the membership. The technical floating LNG installations, has now been Working Groups 1, 2 and 3 for Floating publications which are the end-result of established. It is a GPC subsidiary body. LNG Installations are dealing with 14 Committees and Subcommittees

topics relating to the site assessment, design criteria and operational guidance, respectively, as they relate to nearshore/offshore floating LNG assets. All three had kick-off meetings in March and July 2018 when ToRs were completed and approved and workload assignments were launched. Chair persons of Working Groups 1, 2 and 3 are, respectively, Andrew Brown of Smit Lamnalco, Stuart Thomson of BP and Excelerate Energy’s Jeff Meadows. The working groups are working on a draft master document and the intention is to have the final document ready for review at the 81st GPC meeting (GPC 81) in spring 2020. The Emergency Shutdown Systems (ESD) Working Group is focused on the General Purposes revision of SIGTTO’s previous guidance on the topic, issued in 2009 Committee (GPC) The topics that GPC currently has Shutdown Systems (ESD) Working The CCR Working Group also considered in focus are propulsion systems, Group were approved. The core its next steps at the October 2018 reliquefaction systems, gangways, purpose of the group is to revise meeting and agreed to focus on cargo pressure relief valves and emergency SIGTTO’s publication ESD Arrangements control room layout and ergonomics, shutdown systems. Working groups, and Linked Ship/Shore Systems for considering aspects such as control comprising relevant industry experts Liquefied Gas Carriers – 2009. station layout, physical environment, from amongst the membership, have operator interface, controls, displays The revision is considering technical been established to examine each issue. and the human/machine interface improvements that have been made (HMI). The aim is to develop guidance The Propulsion System and Reliquefaction and lessons learnt from incidents since for operators on how to improve the System Working Groups are both chaired the earlier document was published. safety of cargo operations through by Kenny English of BP Shipping. The The group, which is chaired by Ajay detailed consideration of operational working group members have launched Edakkara of Shell, is also reviewing the practice within the specification and their collaboration to produce documents issue of testing cargo tank overflow design of CCR workstations and HMI. that will effectively upgrade existing systems, as raised at IMO, and seeking industry best practice guidelines to to ensure that all ESD references are HEC 06 approved the expansion of the consider recent technology advances. aligned across SIGTTO publications. initial Task Force for the Gap Analysis of The intention is to submit a draft SIGTTO Competency Guidelines into a guidance document at the autumn 2019 Human Element Committee full-term working group and its terms GPC meeting, i.e. GPC 80, for approval. HEC currently has three active of reference (ToR). The Gap Analysis working groups underway, on cargo Competency Working Group is focused The Gangways Working Group is chaired control room ergonomics, the Gap on the establishment of methodology by Rick Boudiette of Chevron Shipping. analysis of competency guidelines for a major revision of SIGTTO’s four Draft guidance for designers, terminals, and shore staff competencies. crew competency publications. The vessel owners and operators on safe introduction of new technologies in the landing areas and gangway operations Under the chairmanship of Ray Gillet LNG industry has resulted in a need to has been prepared and, once again, of GTT Training, the Cargo Control revise relevant parts of the Society’s the intention is to secure approval for Room (CCR) Ergonomics Working competency guidelines. Steve Allibone of the prepared document at GPC 80. Group completed its work on MOL LNG Transport is chairing this group. Recommendations for Management Another industry best practice text of Cargo Alarm Systems at its seventh The Working Group for Shore Staff earmarked for tabling at GPC 80 for SIGTTO Annual Report meeting in October 2018. The document Competencies is continuing to scope approval is a draft pressure relief valve 2018 Accounts and was approved by the Human Element the applicability of topics within the (PRV) guidance document. The text Committee at its 6th meeting (HEC agreed terms of reference. Topics updates gas carrier cargo system PRV 06) in January 2019 and received under review include shore staff design and maintenance guidance final approval from the SIGTTO competencies for owners/operators of previously issued by SIGTTO in 1998. Board in May 2019. The guidelines gas carriers and their interfaces with At GPC 78 in September 2018 the constitute the first document to be vessels and terminals. Dr Linda Sørensen terms of reference for the Emergency published under the auspices of HEC. of BW Gas is chairing this group. 15 Panel Meetings & Regional Forums

SIGTTO meetings reinforce membership outreach

Coralius, one of the new breed of LNG bunker vessels that have taken to the sea in recent years, fuels a gas-powered Baltic Sea product tanker

SIGTTO’s busy schedule of Panel The latter can include talks on lessons London Panel Meetings and Regional Forums enables learnt, which are shared under Chatham There was one SIGTTO Panel Meeting the Society to maintain a regular House Rules. SIGTTO Panel Meetings in 2018, the 64th event in the series, and ongoing dialogue with its full can be held anywhere in the world, the which was held in London in April. membership. On the one hand, the location depending on the that of the The gathering was hosted by Smit events provide opportunities for the Society member hosting the event. Lamnalco and was augmented by a Secretariat and members participating SIGTTO Regional Forums are held technical visit to HR Wallingford in in current project working groups to regularly to address local issues Oxfordshire. A number of topical issues highlight the key issues concerning the and to provide those members were the focus of attention in the Panel industry to the wider membership. And, without the resources to travel presentations, including vessel mooring on the other, the get-togethers enable to distant Panel Meetings with an systems, the bowtie risk assessment each Society member to contribute opportunity to participate directly methodology, focus points for SIGTTO’s to the discussions and raise new in the Society’s proceedings. There new Floating LNG Installations matters for SIGTTO’s General Purposes are typically around 12 Regional Subcommittee, the surge phenomenon Committee (GPC) and Human Element Forums per year, each lasting a day. in LNG and LPG loading systems and Committee (HEC) to consider for future Forum agendas are proposed by the LNG bunker vessels (LNGBVs). projects involving the development local members themselves while the of industry best practice guidelines. SIGTTO Secretariat acts as secretary LNGBVs are a new type of LNG carrier and at the 64th Panel Hans- Panel Meetings are held once or twice to the meetings. The events are open to members along with selected Christian Haarmann-Kühn of TGE a year, typically in conjunction with a Marine Gas Engineering was on hand spring General Purposes Committee invited guests such as potential members or subject matter experts. to explain to delegates the special (GPC) meeting in April and/or an autumn capabilities required of LNGBVs, over GPC meeting in September/October. SIGTTO Regional Forums currently and above the attributes of similar- Panel Meetings attract large attendances take place on a regular basis worldwide sized small-scale LNG carriers. and are open to every member under the following event headings: of the Society as well as a limited • Pan American For a start, LNGBVs can be called SIGTTO Annual Report number of guests such as potential • South American upon to supply LNG fuel to a and Accounts 2018 Accounts and members or subject matter experts. • Western European variety of different bunker tank Generally taking place over two days, • Scandinavian arrangements on the gas-fuelled Panel Meetings provide opportunities • Mediterranean vessel. The receiving system could be for a frank and free exchange of views • Australian either a vacuum-insulated pressure and opinions on matters of current • Middle Eastern build-up tank; semi-pressurised interest to the industry, plus a series • Asia Pacific storage with boil-off gas (BOG) of presentations on topical subjects. • Indian compressors; or a fully refrigerated 16 Panel Meetings & Regional Forum

, of the membrane type, Zhonghua, told Shanghai Regional in the US, due not least to record for example, when large volumes of Forum delegates that the new LNGBV LPG exports, the start of worldscale LNG bunkers are being carried. will supply the fleet of box ships with LNG and ethane export volumes and an aggregate 300,000 tonnes of LNG the country’s introduction of LNG- Of even greater variety is the range of annually once the project is underway. powered ships and LNG bunkering. different gas-powered vessel types and MOL will operate the vessel and jointly sizes that can require fuelling, each with Proceedings at the December 2018 own it with Total. Rotterdam will be its own manifold arrangement and a set Senior Executive Forum also included the primary bunkering site although time window for transfer operations. As a presentation on the LNG bunkering fuelling operations will also be possible LNGBVs will be designed around the theme. Rudolph Wettstein, general in Dunkirk, Zeebrugge and Le Havre. needs of the biggest potential customer, manager marketing & application for questions then arise about the ability The LNGBV is being provided with Winterthur Gas & Diesel Ltd (WinGD), of fuelling manifolds on smaller LNG- two GTT Mark III Flex membrane the engine manufacturer, described the powered ships to accommodate cargo tanks of 9,300 m3 each. The propulsion system that will drive the high-capacity transfer equipment. aggregate capacity aligns with that of CMA CGM dual-fuel container ships. the single, 18,600 m3 GTT Mark III LNG Each ship will be provided with a WinGD In most operating scenarios the LNGBV bunker tank on each . W12X92DF engine, the most powerful will be required to provide its services The LNG fueller’s propulsion system, gas-fuelled engine yet constructed. in a timely and efficient manner. In comprising four dual-fuel, medium- addition, it may be called upon to Each unit will weigh 2,140 tonnes speed diesel generators driving two support special operations such as and develop 63.84 MW of power. stern azimuthing thrusters, is designed gassing up, cooling down, inerting and The engines operate to the lean-burn to provide the vessel with a high the discharge of residual fuel gas. Also, Otto combustion cycle principle, degree of manoeuvrability and to LNGBVs may have to offer a back-up ensuring that they are in compliance obviate the need for tug assistance. service as a feeder LNG carrier, on with the IMO Tier III nitrogen oxide the one hand, and deal with long idle Fourth Senior emissions requirements at all times periods from time to time on the other. Executive Forum when operating in the gas mode. In conclusion, the new breed of There is another new series of meetings At the time of Mr Wettstein’s LNGBVs now entering service are that is now a regular feature of the presentation 18 ships powered by highly specialised small gas carriers. SIGTTO calendar and that is the WinGD’s X-DF dual fuel engines had The service that they offer requires Liquefied Gas Senior Executive Forum. successfully completed sea trials and new processes and a high degree This event is held every December were in service, comprising eight of flexibility to handle the broad in Houston in conjunction with the conventional size LNG carriers, one range of operating conditions US Coast Guard and the Society for coastal LNG tanker, four coastal likely to be encountered. Gas as a Marine Fuel (SGMF). The chemical tankers, three coastal first Senior Executive Forum took asphalt carriers and three Aframax oil Ten Regional Forums place in 2015 and the December 2018 tankers. Furthermore, an additional A total of 10 SIGTTO Regional Forums gathering, the fourth event in series, 43 conventional-size X-DF LNGCs were held in 2018. The events were attracted 250 attendees. The large were on order in December 2018, staged in Oslo, Singapore, Athens, Senior Executive Forum turnouts as were a further 29 X-DF-powered Buenos Aires, Tokyo, Perth, Shanghai, reflect the current high level of interest commercial vessels of other types, Dubai and Houston. In fact Houston in gas carrier and terminal activities including the CMA CGM box ships. played host to two Pan American Regional Forums last year. The second Asia Pacific Regional Forum of 2018, organised in Shanghai in December, also featured a presentation on LNGBVs. The project in focus was the construction of the world’s largest LNGBV, currently underway at the CSSC Hudong Zhonghua yard in China for CMA CGM of France. The 18,600 SIGTTO Annual Report

m3 LNGBV will be utilised to fuel a 2018 Accounts and fleet of nine 22,000 TEU, dual-fuel container ships, also building in China for CMA CGM. All the ships, including the LNGBV, are set for 2020 delivery.

Eiji Kato of Mitsui OSK Line (MOL), the Andrew Brown of Smit Lamnalco, host of the 64th Panel Meeting, site and project manager at Hudong addresses delegates on the topic of floating LNG installations 17 LNG carrier fleet

LNG carrier fleet by numbers

Number Number of icebreaking Number of of LNG carriers LNG carriers scrapped in 2018 delivered in 2018 vessels in LNG 5 fleet at end-2018 5

Number of 563 Number of LNG vessels less ships of less than 10 years old than 25,000 m3 in LNG fleet

347 Capacity of LNG fleet in 33 cubic metres Number of FSRUs in LNG fleet Number 83.1 of LNG ships on order at end-2018, million of which 46 scheduled for 2019 delivery; 10 of the 33 orderbook total are FSRUs

Number of 138 Number of LNG ships ordered membrane tank vessels in 2018, of which 35 for in LNG fleet; 128 are Moss Greek owners; only 19 new ships and 43 have “other” orders were placed in 2017 Number containment systems SIGTTO Annual Report of LNG ships and Accounts 2018 Accounts and delivered in 2018 392 74 56

18 Sources: GIIGNL and SIGTTO 60

50

40

60 30

50 20

40 10

30 0

20 20

10 15 0

20 10 60 15 5 50

10 400

60 30 5 80 20 50 70 400 1060 50 30 0 80 40 LNG carrier fleet 20 20 70 30 1060 20 15 10 LNG shipbuilding activity in 2018, by propulsion system 500 40 0 60 20 6010 55 30 50 20 50 15 5 10 40 6040 0 6010 300 60 Ships 30 ordered of ships No. 50 50 20 50 21 20 5 80 10 4020 17 40 70 40 8 300 600 3010 7 Ships 50 30 2 20delivered 0 20 200 80 40 X-DF ME-GI TFDE Steam 20 two-stroke two-stroke turbine 10 30 70 15 1020 600 20 10 50 LNG10 shipbuilding0 activity in 2018, by leading LNGC Korean yards 20 015 40 0 20 20 19 19 3015 5 20 20 10

10 0 15 14 15 0 12 Ships 5 80 5 ordered 10 9

70 of ships No. 10 7 0 60 0 50 5 5 Ships 80 40 delivered 80 1 70 30 700 20 0 Daewoo Samsung Hyundai Hyundai 60 Ulsan Samho 50 10 60 0 8050 40 LNG shipbuilding80 activity in 2018, by vessel type 30 7040 70 20 6030 62 10 60 5020 0 50 48 Ships 4010 ordered 40 30

0 SIGTTO Annual Report 30 and Accounts 2018 Accounts and No. of ships No. 20 20 10 9 Ships 10 3 5 delivered 0 2 0 1 0 Conventional Small-scale Medium FSRU/FSU size size 19 Industry in 2018

Gas shipping and terminal timeline 2018

A roundup of key gas shipping and terminal developments in 2018 highlights many aspects of a dynamic industry. These include the spread of an increasingly diverse global infrastructure; the application of new technologies; the emergence of new players and cargoes; and the introduction of new vessel types.

In 2018 the global trade in LNG passed the 300 million tonnes per annum (mta), three times the volume shipped by sea at the start of the millennium. Worldwide movements of LPG in 2018 approached the 100 mta level and are poised to pass this milestone in 2019.

January February March

➜ Exmar chose LPG-burning, ➜ Total and MOL ordered an ➜ The new liquefaction dual-fuel engines to propel a 18,600 m3 LNG bunker vessel, train at Cove Point on the pair of very large gas carriers the world’s largest such US East Coast, a facility (VLGCs) being built by ship, at Hudong-Zhonghua commissioned originally Hanjin Heavy Industries & in China for use in fuelling as an import terminal 40 Construction at Subic Bay in the nine LNG-powered, years ago, produced its the Philippines; they will be 22,000 TEU box ships under first LNG export cargo the world’s first LPG-fuelled construction for CMA CGM vessels on delivery in 2020 ➜ Japan Petroleum Exploration ➜ The newly delivered 50,000 (Japex) started commercial ➜ Nicaragua and Myanmar dwt dual-fuel operations at its Soma imported seaborne LPG Ilshin Green Iris featured a 500 import terminal, the shipments for the first time m3 IMO Type C LNG bunker company’s first LNG receiving tank constructed of a new facility, in the Fukushima ➜ Qatar Petroleum merged cryogenic, high-manganese Prefecture port of Soma Qatargas and RasGas, its steel developed by POSCO affiliated gas operating companies, into one entity, Qatargas

Qatar’s two LNG carrier charterers – Qatargas

SIGTTO Annual Report and RasGas – have been amalgamated into and Accounts 2018 Accounts and a single operating entity - Qatargas

LNGC are now arriving at the Cove Point terminal in Maryland to load cargoes, rather than discharge them

20 Industry in 2018

April May June

➜ Japan’s Hokuriku Electric ➜ The Zuetina terminal in ➜ Panama became the 42nd Power Co inaugurated its war-torn Libya exported its member of the LNG importers Toyama-Shinko LNG receiving first LPG shipment in four club following the discharge terminal in Toyama Bay on years; the cargo from the of a commissioning cargo at Japan’s west coast with a re-opened export facility the Costa Norte terminal in shipment from Malaysia was transported to Italy in Colon, close to the Caribbean the 9,100 m3 Gaz Concord entrance of the Panama Canal, ➜ The European Commission by the 154,500 m3 Provalys. cleared the purchase by ➜ Cameroon became the world’s Total of US$1.5 billion of LNG 20th LNG exporter with the assets controlled by Engie dispatch of the first cargo from the floating LNG production (FLNG) vessel Hilli Episeyo

➜ Cheniere sanctioned the construction of a third 4.5 mta liquefaction train for its new greenfield LNG export project in Corpus Christi, Texas

July

➜ Yamal shipped its first LNG cargo to China via Northern Sea Route

The 35,000 m3 ethylene carrier Navigator Aurora became first gas ship to have its slow-speed converted to enable it to also run on ethane

Mitsubishi Heavy Industries completed the 165,000 m3 SIGTTO Annual Report

Moss spherical tank ship 2018 Accounts and Diamond Gas Orchid, the world’s first LNG carrier designed to the Sayaringo Navigator Aurora was the first gas ship to have its slow-speed STaGE concept diesel engine converted to enable it to also run on ethane

21 Industry in 2018

Gas shipping and terminal timeline 2018

August September

➜ The FSRU Excellence began regasifying ➜ Tema LNG approved an LNG import scheme Bangladesh’s first LNG import cargo based on the use of a -based floating regasification unit (FRU in combination CNOOC’s new Shenzhen LNG import terminal with an FSU moored at Tema in Ghana commenced operations; the facility is CNOOC’s 10th and China’s 20th LNG receiving terminal

➜ Conrad Industries delivered the non- propelled barge Clean Jacksonville, North America’s first LNG bunker vessel Panama Canal traffic The volume of LNG transiting the Panama Canal ➜ ENN Group’s Zhoushan LNG receiving during fiscal year 2018 (FY2018, the 12 months to 30 terminal, China’s 21st such facility, received September 2018) jumped 81 per cent year-on-year, its first commissioning cargo to 11.5 million tonnes (mt). LNG traffic through the Panama Canal in FY 2021 is expected to rise to 28 mt and, in a move to accommodate the planned increase in such shipments, the Panama Canal Authority added a second daily LNGC transit slot through the enlarged locks in October 2018. Transits of VLGCs carrying LPG through the Canal over the past year have been more than double those of LNGCs; LPG carriers account for 26 per cent of Neopanamax vessel transits of the Canal while LNG carriers account for 11 per cent. October

➜ The first LNG export cargo was shipped from the new Ichthys terminal at Darwin in northern Australia

➜

The Ichthys terminal exports both LNG and LPG

➜ Shell and its partners in the LNG Canada export terminal planned for Kitimat in

SIGTTO Annual Report British Columbia decided to go ahead with the two-train, 14 mta project and Accounts 2018 Accounts and

➜ After three years of importing LNG, making use of two FSRUs, Egypt ceased its LNG purchases amidst efforts to reinvigorate exports of the product The volume of LNG moving through the Panama Canal is set to almost treble over the next three years

22 Industry in 2018

November December

➜ Yamal LNG completed the first of a significant ➜ BP and its partners gave the green light to their number of ship-to-ship LNG transfer operations FLNG-based Tortue export scheme for the at Honningsvag fjord in northern Norway coastal waters of Senegal and Mauretania

➜ Cheniere Energy’s greenfield Corpus Christi LNG export terminal in Texas dispatched its first commissioning export cargo

➜ The Russian enclave of Kaliningrad commenced LNG imports with the arrival of the 174,000 m3 FSRU Marshal Vasilevskiy and an inaugural cargo at a purpose-built offshore jetty

➜ The icebreaking LNGC Vladimir Rusanaov transships Excelerate Energy officially withdrew from its a Yamal LNG cargo to Pskov at Honningsvag fjord long-running plan to provide the FSRU-based for onward delivery to the final customer Aguirre Offshore GasPort LNG import project in Puerto Rico; similarly, ExxonMobil stated it will ➜ On the basis of monthly volumes, not proceed with its West Coast Canada (WCC) Australia overtook Qatar as the world’s LNG export project planned for British Columbia leading LNG exporter in November ➜ ADNOC completed the industry’s first co- ➜ Hellas Gladiator departed the Ichthys LNG loading of LPG and propylene cargoes on exported terminal in Darwin, Australia the same vessel at its Ruwais terminal in Abu with the facility’s inaugural LPG cargo Dhabi; the VLGC took onboard 12,600 tonnes of propylene and 33,000 tonnes of LPG

Summary ➜ Jamaica’s status as an LNG importer increased The seaborne trade in LNG increased by 8.3 per cent a level with the replacement of an FSU by its year-on-year in 2018, to reach 314 million tonnes (mt), first FSRU, the 125,000 m3 Golar Freeze, at a following expansions of 9.9 per cent in 2017 and 7.5 purpose-built offshore jetty in Old Harbour per cent in 2016. The annual trade growth in 2018 was the LNG industry’s third largest on record, after 2010 and 2017. Australia recorded the largest jump in exports in 2018; shipments from the country jumped A total of 56 LNGCs were delivered in 2018 while 74 by 11.1 mt, to reach 66.7 mt. On the import side of the newbuildings were contracted during the year, both equation, China was the biggest gainer. Purchases in records. The global fleet of LNGCs stood at 563 vessels 2018 reached 54.0 mt, a year-on-year rise of 14.9 mt. at the end of 2018, while 138 such vessels were on order.

Of the 96.4 mt of LPG moved by sea in 2018, over 80 per cent was carried by fully refrigerated very large gas carriers (VLGCs) of 75,000 m3 and above on deepsea routes. For example, VLGCs loaded more than 85 per cent of the 31 mt of LPG exported from the US during the year. Although the Middle East remains the world’s SIGTTO Annual Report largest LPG export region, with 38.7 mt loaded, US and Accounts 2018 Accounts and overseas shipments continue to grow strongly. US LPG exports are expected to top 40 mt in 2020.

At the end of 2018 there were 268 VLGCs The buildup in shipments from the new Gorgon project helped in service, following a net addition of six Australia boost year-on-year LNG exports by 20 per cent in 2018 vessels, and 40 such ships on order.

Sources: International Group of LNG Importers (GIIGNL); Society of International Gas Tanker and Terminal Operators (SIGTTO); company announcements 23 Global LPG carrier fleet

LPG carrier fleet by type, age, flag state and owner nation

LPG ANNUAL REPORT 2018 VLGC DELIVERY SCHEDULE 140 14 On Order LPG FLEET BY NUMBER OF VESSELS 120 12 Live Number Total Capacity LPG Type 100 10 of Vessels (CBM M) Total Capacity (CBM M) 80 8 Fully Pressurised 722 2.44 60 6 VLGC 307 25.15 40 4 Number of Vessels 173 1.97 LEG 20 2 Total Capacity (CBM M)

SP FR LPG 167 1.84 0 0 <1980 1980 1985 1990 1995 2000 2005 2010 2015 2020 Years ------MGC 122 4.12 1984 1989 1994 1999 2004 2009 2014 2019 2024

LGC 22 1.31 LEG DELIVERY SCHEDULE VLEC 14 1.26 45 0.9 On Order 40 0.8 35 Live 0.7 Total of 84 of which are 30 Total Capacity (CBM M) 0.6 1,527 vessels currently on order 25 0.5 20 0.4 15 0.3

Number of Vessels 10 0.2 Total Capacity (CBM M) LPG FLEET AGE PROFILE 5 0.1 0 0 <1980 1980 1985 1990 1995 2000 2005 2010 2015 2020 350 Years ------299 14 1984 1989 1994 1999 2004 2009 2014 2019 2024 Total Capacity (CBM M) 263 300 259 12 Number of Vessels FULLY PRESSURISED DELIVERY SCHEDULE 250 10 180 140 0.7 200 8 On Order 138 127 120 0.6 150 6 Live 0.5 84 100 Total Capacity (CBM M) Number of Vessels 100 54 4 80 0.4

48 Total Capacity (CBM M) 40 24 0.3 10 60 50 1 2 40 0.2

0 0 Number of Vessels SIGTTO Annual Report 20 Total Capacity (CBM M) On 0 5 10 15 20 25 30 35 40 45 50 55 0.1

and Accounts 2018 Accounts and Order ------4 9 14 19 24 29 34 39 44 49 54 59 0 0 <1980 1980 1985 1990 1995 2000 2005 2010 2015 2020 Years ------Years 1984 1989 1994 1999 2004 2009 2014 2019 2024

Source: VesselsValue as of April 2019 Source: VesselsValue as of April 2019 Does not include floating production vessels. Does not include floating production vessels. 24 Global LPG carrier fleet

VLGC DELIVERY SCHEDULE

140 14 On Order 120 12 Live 100 10 Total Capacity (CBM M) 80 8 60 6

40 4 Number of Vessels

20 2 Total Capacity (CBM M)

0 0 <1980 1980 1985 1990 1995 2000 2005 2010 2015 2020 Years ------1984 1989 1994 1999 2004 2009 2014 2019 2024

LEG DELIVERY SCHEDULE

45 0.9 On Order 40 0.8 35 Live 0.7

30 Total Capacity (CBM M) 0.6 25 0.5 20 0.4 15 0.3

Number of Vessels 10 0.2 Total Capacity (CBM M) 5 0.1 0 0 <1980 1980 1985 1990 1995 2000 2005 2010 2015 2020 Years ------1984 1989 1994 1999 2004 2009 2014 2019 2024

FULLY PRESSURISED DELIVERY SCHEDULE

140 0.7 On Order 120 0.6 Live 100 0.5 Total Capacity (CBM M) 80 0.4 60 0.3

40 0.2 Number of Vessels SIGTTO Annual Report 20 0.1 Total Capacity (CBM M) and Accounts 2018 Accounts and 0 0 <1980 1980 1985 1990 1995 2000 2005 2010 2015 2020 Years ------1984 1989 1994 1999 2004 2009 2014 2019 2024

Source: VesselsValue as of April 2019 Does not include floating production vessels. 25 Fully pressurised vessels account for almost 50 per cent LPG carrier numbers but less than 7 per cent of the LPG fleet’s carrying capacity SIGTTO Annual Report and Accounts 2018 Accounts and

26 Regulations and Standards

SIGTTO engagement in IMO rulemaking process

Ambitious goals are being set for the reduction of greenhouse gas emissions from commercial shipping, including gas carriers

At any one time a number of has a busy schedule of committee the 5th Session of IMO’s Sub-committee rulemaking initiatives are underway and subcommittee meetings each on Ships Systems and Equipment at the International Maritime year. The following paragraphs detail (SSE 5) in March 2018. At SSE 5 it Organization (IMO), the European IMO considerations impacting on the was agreed that sodium bicarbonate- Union (EU) and the US Coast Guard design, construction and operation of based powders should be excluded (USCG) which impact gas carrier gas carriers during the course of 2018. from use as dry chemical powder on operators engaged in international ships carrying liquefied gases in bulk. trade. Because close alignment of Gas carrier firefighting However, it was further recognised that systems and procedures at the ship/ Following a proposal, IMO’s Maritime all dry chemical powders in use were shore interface is critical to safe Safety Committee, at its 98th Session mixtures (containing additives in traces) and reliable gas ship operations, (MSC 98) in June 2017, agreed to and that a single compound dry powder many maritime legislative decisions consider amendments to the Guidelines did not exist. Therefore, it would be also affect terminal operators. for the approval of fixed dry chemical powder fire-extinguishing systems for necessary to further develop criteria SIGTTO plays a key role in the the protection of ships carrying liquefied according to which a dry powder could rulemaking processes of the various gases in bulk (MSC.1/Circular 1315). be considered as a sodium bicarbonate agencies, contributing information powder (e.g. mass percentage of necessary for the drafting of sound The proposal highlighted the lack the main compound), as opposed and effective regulations; representing of detailed “fire-extinguishing to a sodium-based dry powder. member interests on issues of gas ship capability test” requirements and SIGTTO Annual Report It was also agreed that dry chemical safety and reliability; and disseminating the fact that the current guidelines 2018 Accounts and powder other than sodium bicarbonate the results of the progress being specify only the use of powder should be approved by the relevant made at the various regulatory based on the salts of potassium flag administration in accordance meetings amongst the membership. when other media are available. with recognised international IMO is the leading international The technical detail and proposed standards; and that a specific fire- body for maritime safety and amendments to MSC.1/Circ.1315 were extinguishing capability test might be environmental protection affairs and placed on the agenda for discussion at necessary within the Guidelines. > 27 Regulations and Standards

The first maritime application of Posco’s new high-manganese steel is in the Type C LNG bunker tank supplied for the 50,000 dwt, dual-fuel bulk carrier Green Ilshin

A correspondence group was formed to “.1 carbon intensity of the ship to guidelines includes preparatory and progress the work intersessionally to: decline through implementation of transitional issues that may arise with (a) develop draft acceptance criteria for further phases of the energy efficiency a shift from the 3.50% m/m sulphur dry chemical powders in terms of fluidity, design index (EEDI) for new ships limit in ship fuel to the new 0.50% m/m moisture behaviour and suitability for to review with the aim to strengthen limit by 1 January 2020; impact on fuel use on board ships carrying liquefied the energy efficiency design and machinery systems that may result gases in bulk, with a view to establishing requirements for ships with the from the use of fuel oils with a 0.50% performance and testing requirements; percentage improvement for each m/m sulphur limit; verification issues (b) develop draft acceptance criteria phase to be determined for each and control mechanisms and actions for dry chemical powders in terms of ship type, as appropriate; that are necessary to ensure compliance fire-extinguishing capabilities, with .2 carbon intensity of international and consistent implementation; and a view to establishing performance shipping to decline development of a draft standard and testing requirements; and to reduce CO2 emissions per transport format (a standardised system) for (c) identify available standards and work, as an average across international reporting fuel oil non-availability. best practices relevant to the maritime shipping, by at least 40% by 2030, The Oil Companies International Marine sector, as well as possible gaps in the pursuing efforts towards 70% by Forum (OCIMF) and the International existing international regulations. 2050, compared to 2008; and Petroleum Industry Environmental .3 GHG emissions from international In another fire protection-related Conservation Association (IPIECA) shipping to peak and decline decision at SSE 5 a proposed Unified informed the intersessional meeting to peak GHG emissions from Interpretation (UI) dealing with the that, to assist with safety aspects of international shipping as soon as definition of “cargo area” in the the transition, they are facilitating possible and to reduce the total International Gas Carrier (IGC) Code the development of industry safety annual GHG emissions by at least 50% 11.1.4 for the purposes of firefighting guidelines for submission to IMO. by 2050 compared to 2008 whilst arrangements was accepted. It was pursuing efforts towards phasing agreed that when there is a fuel tank High-manganese steel them out as called for in the Vision as adjacent to the cargo area, the weather At its 5th Session in September a point on a pathway of CO2 emissions deck area above should be considered 2018 IMO’s Sub-Committee on the reduction consistent with the Paris as “cargo area”, in the same way that a Carriage of Cargoes and Containers Agreement temperature goals.” void space or ballast tank would be. (CCC 5) agreed to a draft Maritime IMO will now continue to work on Safety Committee (MSC) circular on Greenhouse gas possible measures to achieve this Interim Guidelines on the application SIGTTO Annual Report emissions (GHGs) ambition at future sessions of MEPC. of high manganese austenitic steel for and Accounts 2018 Accounts and In April 2018, at its 72nd session, cryogenic service and to expand the IMO’s Marine Environment Protection Global sulphur cap 2020 terms of reference to include related Committee (MEPC 72) adopted the IMO is developing guidelines for the guidance for approving alternative Initial IMO Strategy on reduction of Consistent implementation of regulation metallic material for cryogenic service GHG emissions from ships, the most 14.1.3 of MARPOL Annex VI and work more generally. Both the Guidelines notable aspect being the “levels continued during an intersessional and the expanded terms of reference of ambition”, expressed as: meeting in July 2018. The scope of the were subsequently approved at 28 Regulations and Standards

the 100th MSC Session (MSC 100) in in the cargo area may be fitted with a of failure in any part of the system, December 2018. An IMO correspondence removable spool piece in lieu of that standby heating can be maintained group is engaged in compiling the in the common inert gas main; and equal to not less than 100% of the expanded terms of reference. (b) “a removable spool piece” theoretical heat requirement”. The UI may be replaced by “a double clarifies the aspects of the system that The development of the interim block and bleed valve”. The UI was should be powered by the emergency guidelines was spurred by the seen as a change to the intent of generator and this was accepted by development of the new steel for the Code and hence rejected. the Sub-committee at its 5th Session. cryogenic service by POSCO, the Korean steel manufacturer. The A detailed UI was proposed to IACS also proposed a UI to clarify the material contains about 20 per cent clarify the requirements for deck requirements for emergency shutdown manganese and possesses a high water spray systems (paragraphs valve fire test requirements (paragraph yield strength and toughness at the 11.3.1, 11.3.3 and 11.3.4 of the IGC 5.13.1.1.4 of the IGC Code) to allow LNG carriage temperature of -162˚C. Code) concerning, respectively: material with a melting temperature (a) what constitutes “two complete lower than 925°C in components such Gas cargo minimum athwartship tank groupings”; as rubber handle covers (where failure requirements (b) the interconnections between would not cause deterioration of shell The UK proposed to make consequential the spray and fire systems; and or seat tightness intrinsically). CCC amendments to Chapter 19 of the revised (c) the capacity of the fire pumps 5 agreed to the proposed IACS text, International Gas Carrier (IGC) Code, serving water spray systems albeit with a slight modification. which entered into force in 2016. Chapter and protection of exposed 19 provides a summary of the minimum survival craft with water spray. Energy Efficiency requirements for gas carrier cargoes, UIs were agreed on all issues except for Design Index paragraph 11.3.4 of the Code. CCC 5 also and the amendments are deemed to be IMO’s Marine Environment Protection noted concerns regarding the reference necessary to correct those anomalies Committee (MEPC) is carrying out a to “fire in one compartment” and it is introduced during the revision process review of the Energy Efficiency Design expected a further UI will be submitted that result in differences between Index (EEDI) provisions applicable to to the next session on this point. the “old” and “amended” Codes. new ships, including gas carriers. A CCC 5 acknowledged that the list of IACS submitted a UI concerning the correspondence group (CG) is reviewing products as provided in Chapter 19 of required heating for the structural the Phase 3 requirements with a view to the IGC Code for ships constructed on material of the cargo containment potentially changing the implementation or after 1 July 1986 and before 1 July systems and emergency power date and emission reduction 2016 was not up-to-date. As an interim requirements. Paragraph 4.19.1.6 of the requirements. This CG will report to solution, a draft MSC circular clarifying IGC Code requires the means of heating MEPC’s 74th Session (MEPC 74) in May the issue was agreed for submission to “… be arranged so that, in the event 2019 when a decision is anticipated. to MSC 101 for approval in June 2019. IGC Code Unified Interpretations The intent of paragraph 11.3.4 of the IGC Code concerning the capacity of the emergency fire pump, considering the supply of fire hydrants, the water spray system and foam system (and combinations thereof), was raised by the International Association of Classification Societies (IACS). Clarification was sought on the text and in particular whether a single failure mode philosophy should be applied. CCC

5 agreed it should, and it is expected SIGTTO Annual Report

that a Unified Interpretation (UI) will 2018 Accounts and be submitted to the next CCC session. A UI was proposed concerning inert gas system isolation (paragraph 9.4.4 of the IGC Code) suggesting that: A number of Unified Requirements proposed by IACS, concerning gas (a) for the inert gas main which has ship fire protection arrangements, were discussed at the September 2018 branch lines, each of such branch lines session of IMO’s Carriage of Cargoes and Containers Sub-committee 29 New Publications

Enhancing industry best practice guidance library

77) meeting in April 2018. The new publication recognises the technological advances that have been made over the past two decades and supersedes a 1997 SIGTTO publication entitled Ship/Shore Safe Working Practice for LPG and Chemical Gas Cargoes.

SIGTTO prepared the new document to identify the potential hazards that can arise at the LPG/chemical gas ship/shore interface; to provide safe working practice guidelines through reference to industry publications; to minimise the risk of incidents occurring; and to help raise overall safety awareness at the interface.

As part of highlighting the principal risks present in the interface zone, the publication describes risk assessment and hazard identification techniques that gas carrier staff and terminal SIGTTO’s new manifold publication includes provisions which assist in operators are able to make use of. planning the position of loading and discharging facilities on new jetties In many respects the interface between LPG/chemical gas carriers and terminals As indicated in last year’s SIGTTO The Second Edition brings together, is a more complex zone than that Annual Report, working groups in one document, the manifold encountered in the LNG sector. Whereas established by the Society’s General arrangements and cargo strainer LNG carrier and terminal operators are Purposes Committee (GPC) completed guidelines for LNG, LPG and chemical dealing with a homogeneous cargo, drafting work on three new sets of gas carriers in order to promote staff handling LPG and chemical gas industry best practice guidelines in improved standards of safety and carrier cargo transfers have to deal 2017. Following approval, the three efficiency in ship operations. The with a matrix that encompasses a range documents - Recommendations for guidance is also intended to assist of different cargoes, temperatures Liquefied Gas Carrier Manifolds, Ship/ in planning the position of loading and pressures as well as a variety Shore Interface for LPG/Chemical Gas and discharging facilities on new of vessel and terminal types. Carriers and Terminals and Guidelines jetties. The recommendations do The new Guidelines for the Alleviation for the Alleviation of Excessive Surge not apply to existing ships. of Excessive Surge Pressures on ESD Pressures on ESD for Liquefied Gas Amongst the key changes in the latest for Liquefied Gas Transfer Systems Transfer Systems were published version of the manifold publication are publication was also approved at GPC in early 2018. The three sets of new categories created for small-scale 77. SIGTTO prepared the document to guidelines brought the number of paid LNG and the extension of manifold enable project teams and operators publications that SIGTTO had delivered provisions to include LNG bunkering of terminals and liquefied gas carriers over the previous four years to eight. as an option. SIGTTO and OCIMF to review the design, engineering Recapping the 2018 trio recognise that some new gas carrier and operation of their cargo transfer designs may not be able to conform systems. Such reviews may assist in Preparation of the Recommendations to all the recommendations in the avoiding the generation of excessive for Liquefied Gas Carrier Manifolds SIGTTO Annual Report new Second Edition. However, the surge pressures and momentum publication was a joint initiative and Accounts 2018 Accounts and document is intended to serve as a change in transfer systems on between SIGTTO and the Oil Companies starting point with a view to minimising activation of emergency shutdown International Marine Forum (OCIMF). It is differences as much as possible. (ESD) devices or other events. also the Second Edition of the document and updates the inaugural 2011 edition, The draft first edition of theShip/Shore The purpose of this document is to which provided recommendations Interface for LPG/Chemical Gas Carriers provide familiarisation with the concepts on the layout, strength and fittings and Terminals guidance document of surge pressure and to for gas carrier manifolds. was approved at the 77th GPC (GPC provide practical guidance and 30 New Publications

recommendations to the designers, by HEC’s Cargo Control Room (CCR) 2. ESD Arrangements & Linked Ship/ engineers and operators of liquefied Ergonomics Working Group. The CCR Shore Systems for Liquefied Gas Carriers gas carrier and terminal loading and Group has already moved on and is 3. ESD Arrangements & Linked Ship/ unloading systems. The document’s now focusing on cargo control room Shore Systems for Liquefied Gas description of the generation of layout and ergonomics, considering Carriers (2009) – Addendum surge pressures features both a high- aspects such as control station layout, 4. Fire Prevention in the Cargo level overview and a more detailed physical environment, operator Containment Systems of Liquefied technical explanation so that it is interface, controls, displays and the Gas Carriers in Shipyards applicable to surge experts and human/machine interface (HMI). 5. Gas Concentrations in the Insulation novices alike. One recommendation The aim is to develop guidance for Spaces of Membrane LNG Carriers that is particularly highlighted is the operators on how to improve the 6. Guidance for the Prevention practice of utilising linked ship/shore safety of cargo operations through of Rollover in LNG Ships ESD arrangements as an effective detailed consideration of operational 7. Guide for Planning Gas means of reducing surge pressure. practice within the specification and Trials for LNG Vessels design of CCR workstations and HMI. 8. LNG and LPG Experience Matrix Next round of publications (Including Guidelines for Use) As indicated by the descriptions of Another new Society publication 9. LNG Marine Loading Arms and the current work programmes of that has appeared recently is SIGTTO Manifold Draining, Purging and SIGTTO’s General Purposes and Human Information Papers (Consolidated Disconnection Procedure Element Committees (GPC and HEC) Edition 2019). Compiled as a handy, 10. Report on the Effects of Fire on on page 14, working groups and a single-volume reference tool for LNG Carrier Containment Systems new subcommittee established by the use by the industry, the document 11. Simulation Information Paper two bodies have made considerable brings together all the SIGTTO 12. Suggested Quality Standards progress over the past 18 months Information Papers that were in for LNG Training Providers on projects to compile new sets of force as of March 2019. The contents 13. Thermowells in LNG industry best practice guidelines. of the publication are as follows: Carrier Liquid Lines 1. A Justification into the Use of 14. The Selection and Testing of While the majority of these will Insulation Flanges (and Electrically Valves for LNG Applications be published over the next year, Discontinuous Hoses) at the Ship/ 15. The Selection and Testing of the first has already appeared. Shore and Ship/Ship Interface Valves for LPG Applications Recommendations for Management of Cargo Alarm Systems was issued as a free publication in spring 2019 and represents the first document to be prepared by HEC. The publication recommends the implementation of alarm management philosophies for cargo alarm systems on gas carriers, specifically calling for shipowners to work with system designers, classification societies and shipyards to create a management system for cargo alarms on each ship. Information in the document is based on existing philosophies in the International Safety Management (ISM) Code, the Code on Alerts and Indicators, the International Gas Carrier (IGC) Code and the IEC 62682 standard dealing SIGTTO Annual Report

with the management of alarm systems 2018 Accounts and used in the process industries. Alarm management is a good example of how human element considerations can lead to improved safety performance.

Recommendations for Management of The selection and testing of valves for LNG applications is one of 15 topics Cargo Alarm Systems was compiled covered in the new consolidated edition of SIGTTO Information Papers 31 SIGTTO Paid Publications

SIGTTO paid publications

SIGTTO Information Papers, LNG Suggested Consolidated Ed 2019 (2019; £175.00) Competency Standards for Engineers (2010; £125.00) Recommendations for Liquefied Gas Carrier Manifolds (2018; £175.00) LPG Shipping Suggested Competency Standards (2008; £125.00) Ship/Shore Interface for LPG/ Chemical Gas Carriers and LNG Shipping Suggested Competency Terminals (2018; £175.00) Standards, 2nd Ed (2008; £125.00)

Guidelines for the Alleviation of Jetty Maintenance and Inspection Excessive Surge Pressures on Guide (2008; £175.00) ESD for Liquefied Gas Transfer Systems (2018; £175.00) Hydrates in LPG Cargoes (2008; £75.00) LNG Emergency Release Systems - Recommendations, Guidelines Liquefied Gas Fire Hazard and Best Practices (2017; £125.00) Management (2004; £175.00)

Liquefied Gas Handling Principles Crew Safety Standards and on Ships and in Terminals, 4th Training for Large LNG Carriers: Ed (LGHP4) (2016; £275.00) Esssential Best Practices for the Industry (2003; £75.00) Support Craft at Liquefied Gas Facilities: Principles of Emergency LNG Operations in Port Response and Protection - Areas (2003; £75.00) Offshore (2016; £125.00) Guide to Contingency Planning for Support Craft at Liquefied Gas Marine Terminals Handling Liquefied Facilities: Principles of Emergency Gases in Bulk, 2nd Ed (2001; £40.00) Response and Protection - Onshore (2015; £125.00) Guidelines on the Ship-Board LNG Emergency Release Systems Guidance for LNG Carriers Transiting Odourisation of LPG (2000; £40.00) the Panama Canal (2014; £125.00) An Introduction to the Design Ship-to-Ship Transfer Guide and Maintenance of Cargo System for Petroleum, Chemicals and Pressure Relief Valves Onboard Gas Carriers, 2nd Ed (1998; £40.00) www.sigtto.org Society of International Gas Tanker & Terminal Operators Ltd Liquefied Gases (2013; £275.00) First Edition

LNG Emergency Release Systems Liquefied Gas Carriers: Your Personal Site Selection & Design for LNG Recommendations, Guidelines and Best Practices

SIGTTO Annual Report Ports & Jetties (Information First Edition Safety Guide (2012; £25.00)

and Accounts 2018 Accounts and Paper No 14) (1997; £40.00) Application of Amendments to Gas Carrier Codes Concerning Type C Tank Loading Limits (2012; £25.00) Details of more than 60 free SIGTTO publications, newsletters, annual Sampling reports and articles are given on the Procedures (2010; £25.00) Society’s website: www.sigtto.org 32 2018 Accounts

SIGTTO Society of International Gas Tanker and Terminal Operators Limited

Statement of Comprehensive Income for the year ended 31 December 2018 SIGTTO Annual Report and Accounts 2018 Accounts and

33 2018 Accounts SIGTTO

Statement of Financial Position at 31 December 2018 SIGTTO Annual Report and Accounts 2018 Accounts and

34 PHOTO CREDITS: Front cover - Evergas; Page 2 - BW Gas; Page 4 – BW Gas; Page 6 – Mitsui OSK Lines; Page 10 - MISC; Page 11 – Avance Gas Holding; Page 14 - OLT Offshore LNG Toscana; Page 16 – Anthony Veder; Page 20 – Qatar Petroleum (Industrial Cities Ports); Page 22 - Teekay; Page 22 – Kawasaki Kisen Kaisha; Page 23 – Sovcomflot; Page 23 – Chevron; Page 27 – Bernhard Schulte Shipmanagement; Page 35 – Cameron LNG; Back cover – Höegh LNG SIGTTO

Society of International Gas Tanker and Terminal Operators Ltd (SIGTTO) 5th Floor, 42 New Broad Street London EC2M 1JD Tel: +44 20 7628 1124 Fax: +44 20 7628 3163 E-mail: [email protected] Web site: www.sigtto.org Twitter@SIGTTO