AnnualGeneral Report Manager’s and Accounts Report 2016 SIGTTO Society for International Gas Tanker and Terminal Operators Ltd
Continually promoting best practice in the liquefied gas shipping and terminal industries for 38 years SIGTTO Annual Report and Accounts 2016 Accounts and
1 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 2020 Vision (Where the Society wishes to see itself in 2020, according to its Strategic Plan) SIGTTO will be recognised as the foremost 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 2016
Contents
5 President’s report 15 SIGTTO Secretariat 30 Hot off the presses David Furnival presents The Society’s Secretariat Review of latest industry an overview of outstanding office staff best practice publications progress in a notable year from SIGTTO 16 SIGTTO committees 7 General Manager’s report and subcommittees 30 Publications list Andrew Clifton looks Internal restructuring to Paid publications back on notable SIGTTO accommodate available from SIGTTO developments in 2016 Strategic Plan 2016 33 Financials 8 SIGTTO members 18 Industry regulations Statement of Comprehensive Full and Associate Members and standards Income for the year as of 31 December 2016 SIGTTO participation ended 31 December 2016 in the evolving regulatory 9 Benefits of SIGTTO regime governing gas ships 35 Inside Back Cover membership Photo credits Listing of the advantages that 22 The industry year in review Society membership can bring Gas shipping and terminal 2016 timeline 11 SIGTTO in figures A statistical review of 26 SIGTTO’s widening remit SIGTTO’s membership Work programme extended and accomplishments to compressed natural gas carriers, ISO tank containers 12 SIGTTO history and liquefied hydrogen carriers The evolution of SIGTTO since its formation in 1979 28 Panel Meetings and Regional Forums 14 SIGTTO directors Busy SIGTTO meeting schedule SIGTTO directors and their facilitates two-way dialogue companies, as of 31 December 2016 SIGTTO Annual Report and Accounts 2016 Accounts and
3 SIGTTO Annual Report and Accounts 2016 Accounts and
Very large gas carrier traffic at the Enterprise terminal in Houston, the world’s busiest LPG loading facility 4 President’s Report
SIGTTO Strategic Plan implementation well underway I am honoured to present SIGTTO’s 2016 annual report, following my appointment as President of the Society in November 2016, a personal 40-year career pinnacle.
Under the effective leadership of publications have been delivered in both the gas terminal community General Manager Andrew Clifton, the last 30 months and there are two and the LPG and chemical gases SIGTTO has made strong and steady more scheduled for publication in sectors. As is the case with LNG, progress over the past 12 months the next 12 months, a clear indication activity in the LPG and chemical towards delivering the objectives of an improving productivity. gas industries is currently growing laid down in the Society’s new strongly. Increased participation from Safety and accident prevention are at Strategic Plan. The completed all parties will help ensure that the the forefront of SIGTTO’s focus. With document was approved at the Society is fully representative of the this in mind, the adoption of modern risk Autumn Board and Annual General entire liquefied gas value chain. assessment and mitigation techniques Meeting in November 2015. such as the “bow-tie” tool is a welcome As the use of LNG as a marine fuel The goals laid down in the Plan, development, as is the formation of gains more traction, with 105 LNG- which covers the five-year period our new Human Element Committee fuelled ships in operation and another up to 2020, includes a strengthened (HEC). Human error in one form or 75 on order, the excellent work of our Secretariat with the competencies other remains a causal factor in many sister organisation, the Society for and resources necessary to meet accidents and it is imperative that Gas as Marine Fuel (SGMF), warrants the challenges of supporting safety we learn more about the underlying appreciation. In the short time since its and operational integrity in an reasons behind accidents and near inception and with limited resources ever-growing and diversifying gas misses in order to develop more SGMF’s General Manager and Directors terminals and shipping sector. effective preventative measures. have gained genuine credibility and have a broad-based membership As part of the drive Ian Harrison has The new, fourth edition of the Society’s of 113. With seven working groups been appointed to join the Secretariat flagship publication,Liquefied Gas established and six publications staff as a full-time IMO representative. Handling Principles (LGHP4), has already issued, their output has been This new role requires that rare proven to be something of a best- impressive. SIGTTO remains committed combination of technical and political seller in the year since its release. This to providing ongoing support to SGMF. acumen so necessary to effectively is welcome news on two counts – the promote the Society’s strategies at royalties provide a revenue stream In closing, it is with great sadness international governmental level. A that underpins the financial security that I report the passing of SIGTTO look at his CV reveals that Ian is well- of the organisation and, even more Director Faisal Ismail on 29 June 2017 qualified to deliver what is needed. importantly, its popularity across a at the age of 56. Faisal, a former Vice broad spectrum of readers indicates President of LNG at MISC and the Ian’s appointment is enabling SIGTTO’s that there is a significant appetite in our Chief Executive of Petronas Maritime Technical Advisers to focus on new industry to be properly informed on Services, was a well-respected member projects and publications. The scope how to handle liquefied gases safely. of the Board whose considered of guidelines on safe operations will be contribution to the Society’s direction expanded to include new areas such as The strong focus on engagement with and governance will be greatly missed. compressed natural gas (CNG) carriers members is paying dividends with a and LNG transported in ISO tank continually growing membership base On behalf of my colleagues at containers. SIGTTO’s widening remit in that now stands at over 220, including SIGTTO, I would like to express our this respect is described on page 26. 184 full and associate members, located sincere condolences to Faisal’s family and friends at this time of loss. in 55 countries. SIGTTO’s Regional SIGTTO Annual Report In parallel to the initiative to increase
Forums are proving to be particularly 2016 Accounts and staff resources, SIGTTO is adopting a popular, with the September 2016 more systematic approach towards South American event in Buenos Aires improving process structure and hosting a record 110 participants. efficiency. As a result good progress has been made to reduce the backlog Additional efforts are being made David Furnival of projects sanctioned by the General to attract to the membership a SIGTTO President Purposes Committee (GPC). Five paid greater proportion of operators from July 2017 5 SIGTTO Annual Report and Accounts 2016 Accounts and
Many import terminals are being called upon to play additional roles, including handling cargo reloads and transfers to conventional-size and small-scale vessels 6 General Manager’s Report
SIGTTO enjoyed another busy and eventful year in 2016 During the year 13 new members joined SIGTTO and 11 resigned. As of 31 December 2016 we had a total of 184 full and associate members.
The SIGTTO directors met three as appropriate, and over the years has in Perth in April 2016 and one of the times during the year, as per the written/co-sponsored submissions highlights was the shipping session Society’s byelaws. The spring to IMO on various matters related to which I had the opportunity to chair. board meeting, kindly hosted by the LNG/LPG sector of the maritime As LNG shipping embarks on its second Engie, was held in Boston while the industry. A principal focus for us in half century, it is important that the autumn board and annual general recent years has been the revision of the very proud safety record established meetings took place in Nagoya International Code for the Construction by our industry is not forgotten. As where Chubu Electric was the host. and Equipment of Ships Carrying the industry leader for disseminating Liquefied Gases in Bulk (IGC Code) and The Society is registered in Bermuda best practice procedures and providing the drafting of the new International as a “not-for-profit” entity. We are technical support for companies Code of Safety for Ships using Gases or allowed to retain any surplus as active in liquefied gas shipping and other Low-Flashpoint Fuels (IGF Code). reserves and each year we set the terminals, SIGTTO is at the forefront budget to generate a small surplus SIGTTO’s Secretariat maintains close of maintaining this safety record. which goes to reserves. The reserve contacts with other NGOs, principally It incumbent on SIGTTO to adapt to meet level we target is about one year’s the Oil Companies International Marine ever-changing industry requirements operating costs and we are comfortably Forum (OCIMF), the International and to ensure that the Society remains in excess of this target. The Society’s Chamber of Shipping (ICS), the Society relevant and fit for purpose to meet finances remain on a sound footing. for Gas as a Marine Fuel (SGMF), the the needs and expectations of the International Association of Tanker SIGTTO’s General Purposes Committee membership in the 21st century. To assist Owners (Intertanko), the International (GPC) manages the Society’s affairs. in fulfilling its duties SIGTTO completed Group of LNG Importers (GIIGNL) The Committee met twice in 2016, at an updated Strategic Plan in 2016 and and BIMCO. Where appropriate, we Perth in April and Cyprus in October. The this is presently being implemented. co-ordinate our activities to ensure Society maintains a full programme of The Plan outlines the direction the a consistent industry message is activities, most of which are addressed Society intends to take for the rest conveyed to the wider world. by working groups populated by experts of the current decade, and progress selected from the member companies. The revised IGC Code entered into in achieving the agreed goals will be SIGTTO’s Autumn 2016 Panel Meeting force on 1 January 2016 and was reviewed at each board meeting. implemented on 1 July. Also in July was held in Cyprus on the two days The Society continues to be the principal following the October GPC. There was no 2016, SIGTTO issued the fourth edition voice for the liquefied gas industry. Spring Panel in 2016 due to the clash with of Liquefied Gas Handling Principles, It is an industry which is currently the international LNG 18 conference in its premier publication. The IGF Code experiencing both strong expansion and Perth. SIGTTO Panels represent the main came into force on 1 January 2017. high levels of technological innovation. meeting forum for the members, and The delivery of the IGC and IGF Codes the Autumn 2016 Panel, like all the other This is a very exciting and challenging and Liquefied Gas Handling Principles events in the series, was well attended. time to be SIGTTO General Manager. means the SIGTTO Secretariat can I look forward immensely to working SIGTTO’s Regional Forum meetings now focus resources on other areas. closely with the membership to continue to be held on a regular basis Amongst its roles, the Secretariat meet the needs of our dynamic in various locations around the world. SIGTTO Annual Report maintains a programme of external industry in the year ahead.
The timing of such meetings is largely 2016 Accounts and engagements to promote the Society’s dictated by the members themselves. profile. These include speaking to various The Society has ‘observer status’ as a bodies and chairing and presenting non-governmental organisation (NGO) at papers at international conferences such the International Maritime Organisation as Gastech and the LNG series of events. (IMO). SIGTTO’s Secretariat attends IMO As an example, SIGTTO maintained a Andrew Clifton committee and subcommittee meetings, high profile at the LNG 18 conference General Manager July 2017 7 Membership
SIGTTO members (as at 31 December 2016)
Full Members
Aegis Logistics Ltd Fluxys LNG Osaka Gas Co Ltd AES Andres Freeport LNG Development LP Pertamina Transportation LNG - JMG Alpha Gas SA GasLog LNG Services Ltd Petrobras Transporte SA - Transpetro Anglo Eastern Ship Gate Terminal BV POSCO Management (Singapore) Gazocean Prime Gas Management Inc Anthony Veder Rederijzaken BV Geogas Maritime SAS Pronav Ship Management Atlantic LNG Company of Golar LNG Ltd PT Donggi Senoro LNG Trinidad & Tobago Golar Management Norway AS PTT LNG Company Ltd Avance Gas Holding Ltd Golden Pass LNG Qatar Petroleum Bahia de Bizkaia Gas SL H-Line Shipping Co Ltd (Industrial Cities Ports) Bernhard Schulte Shipmanagement Ltd Hoegh LNG Qatar Gas Transport Company Ltd B-Gas Ltd Hyproc Shipping Company Qatar Shipping Company SPC BP Berau Ltd Hyundai LNG Shipping Co Ltd Qatargas Operating Company Ltd BP Shipping Ltd Iino Kaiun Kaisha Ltd QCLNG Operation Company Pty Ltd Brunei LNG Sdn Bhd Ineos Ras Laffan Liquefied Natural Bumi Armada Berhad Inpex Corporation Gas Company Ltd BW Gas AS International Gas RWE Supply & Trading GmbH BW LPG Ltd Transportation Co Ltd Santos GLNG Calor Gas Ltd Iwatani Corporation Saudi Arabian Oil Co (Saudi Aramco) Japan Petroleum Exploration Co Ltd Cameron LNG SCF Management Services (Dubai) Ltd Canaport LNG JX Nippon Oil & Energy Corporation Sempra LNG Chemgas Shipping BV Kansai Electric Power Co Inc Shell International Trading Cheniere LNG Inc Kawasaki Kisen Kaisha Ltd & Shipping Co Ltd Chevron Shipping Company LLC Kinder Morgan Inc Shipping Corporation of India China LNG Shipping Knutsen OAS Shipping Shizuoka Gas Co Ltd (International) Company Ltd Koch Shipping Pte Ltd SK Shipping Chubu Electric Power Co Inc Korea Gas Corporation Sonangol Marine Services Inc Chugoku Electric Power Co Inc Kuwait Oil Tanker Co SAK South Hook LNG Terminal Co Ltd ConocoPhillips Global Marine Lake Charles LNG Company LLC SPT Ltd Consolidated Marine Management Inc Lauritzen Kosan A/S CPC Corporation, Taiwan LNG Japan Corporation Stena LNG Services AB DESFA Hellenic Gas Transmission LNG Shipping SpA Sunoco Logistics LP System Operation Malaysia LNG Sdn Bhd Synergy Maritime Pvt Ltd Dorian LPG Management Corp Maran Gas Maritime Inc Teekay Shipping Dragon LNG Ltd Marubeni Corporation TEPCO Fuel & Power Inc Dubai Supply Authority MISC Bhd The Bahrain Petroleum Dynagas Holding Ltd Mitsubishi Corporation Company BSC (Closed) Egegaz Anonim Sirketi Mitsui & Co Plant Systems Ltd Thenamaris LNG Egyptian Operating Company for Mitsui OSK Lines Ltd TMS Cardiff Gas Ltd Natural Gas Liquefaction Projects Naftomar Shipping & Trading Co Toho Gas Co Ltd Elengy National Gas Shipping Company Ltd Tohoku Electric Power Co Inc Empresa Naviera Elcano SA National Grid Grain LNG Tokyo Gas Co Ltd
SIGTTO Annual Report Enagas Transporte SAU Nigeria LNG Ltd Total SA
and Accounts 2016 Accounts and Energy Transportation Group Inc Norgas Carriers Private Ltd Ultraships ApS Engie Northern Marine Management Ltd Uniper Global Commodities SE Evergas A/S NYK Line (Nippon Yusen Kaisha) V Ships Ltd Excelerate Energy LP Oiltanking Antwerp Gas Terminal NV Wilhelmsen Ship Management Sdn Bhd Exmar NV OLT Offshore LNG Toscana SpA Woodside Energy Ltd ExxonMobil - SeaRiver Maritime Oman LNG LLC YPF SA
8 Membership
Associate Members
ABS Gas Sayago SA Petronet LNG Ltd Anadarko Petroleum Corporation Gazprom Marketing & Trading Polish Oil and Gas Company Angola LNG Ltd Singapore Pte Ltd Polskie LNG SA Angola LNG Marketing Ltd GNL Quintero SA Port of Rotterdam Authority Boluda Towage and Salvage GTT Training Ltd Port of Sheerness Ltd Bureau Veritas Guangdong Dapeng LNG Co Ltd Saga LNG Shipping Pte Ltd China Energy Ship Hazira Port Private Ltd Singapore LNG Management Co Ltd H-Energy Gateway Private Ltd Corporation Pte Ltd ClassNK Jordan Cove LNG LLC Smit Lamnalco CNOOC-Fujian LNG Co Ltd Kotug International Steelhead LNG Corp DNV GL Lloyd’s Register Svitzer A/S Dunkerque LNG LNG Canada Development Inc Total E&P Norge AS ElectroGas Malta Ltd Maritime and Port Authority Venture Global LNG Inc Etkilman Isletmeleri Dogalgaz of Singapore Vitol Services Ltd Ithalat Ve Ticaret AS Maritime Safety Queensland Warsash Maritime Academy ExxonMobil PNG Ltd Milford Haven Port Authority (Southampton Solent University) FLEX LNG Moran Towing Corporation WesPac Midstream Fratelli Neri SpA NextDecade LLC Woodfibre LNG Ltd
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 2016 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 2016 Accounts and
Ship-to-ship transfers for onward distribution are an integral part of LPG carrier operations 10 SIGTTO in Figures
Years Panel Full and since SIGTTO Meetings to date associate established 62 members 38
184 Countries with SIGTTO Weight of members Liquefied Gas Handling Principles 4th Edition Major publications in 55 2.5kg last 2.5 years
5 Attendance at South Ameri can Regional Forum Regional Forums GPC Buenos Aires Sept 16 scheduled for 2017 members 34 11 110
SIGTTO Members’ Declared Assets
Total Number of 1025 Declared Assets
Number of 72 LPG Terminals
Number of 104 LNG Terminals
Number of SIGTTO Annual Report 371
LPG Carriers 2016 Accounts and Type of Declared Asset of Declared Type
Number of 478 LNG Carriers
0 200 400 600 800 1000 1200 Number of Declared Assets 11 SIGTTO History
SIGTTO grows with the gas carrier trades
From the outset, in the exploratory talks on the merits of a liquefied gas industry association, participants realised that the membership should encompass both ship and terminal operators
When the Society of International June 2017 the existing LNG carrier worldwide are keen to make use of Gas Tankers and Terminal Operators fleet welcomed its 500th ship. competitively priced ethane as a was established as a new industry feedstock and US export volumes are association, with 10 founder members, In addition to conventional size vessels, scheduled to reach the 15 million tonnes in October 1979, the LNG carrier fleet the current LNG carrier fleet includes per annum (mta) mark by 2020. Such a stood at 52 vessels. All the ships were coastal distribution tankers, floating volume would make ethane the fourth engaged in shuttling between export storage and regasification units (FSRUs) largest gas carrier cargo in volume and import terminals on dedicated and multigas carriers able to carry LPG terms, after LNG, LPG and ammonia. routes and under long-term charters. and a range of chemical gases as well as LNG. Also, the first dedicated LNG SIGTTO origins Although global seaborne movements bunker tankers and the first floating The origins of SIGTTO can be traced of LNG had by then been underway LNG production (FLNG) vessel have back to 1977 when a number of LNG for 15 years, the market was still in entered into service over the past year. the early stages of development and carrier operators began to exchange struggling to gain a foothold at a time The LNG and LPG sectors are currently correspondence on the merits of a when oil dominated tanker shipping. amongst the most dynamic in shipping. possible industry association focused Global seaborne movements of LNG on ship safety and operational best There were only six LNG exporting in 2016 totalled 263.6 million tonnes practice matters of common concern. nations in 1979 and five importers. The (mt), a 7.5 per cent jump on a year US was unique in having a foot in both The initiative found favour and gathered earlier while LPG movements climbed camps, exporting LNG from a small strength, to the extent that a series 6 per cent, to 90.7 mt. Some 28 per terminal in Alaska and receiving overseas of meetings was convened between cent of the LNG cargoes were fixed cargoes at three East Coast facilities. December 1978 and March 1979 in order
SIGTTO Annual Report on a spot or short-term basis. to discuss the need for and possible
and Accounts 2016 Accounts and formation of such an association. El Gas dynamics A good proportion of the new LNG and Paso LNG and Compagnie Nationale The industry, and SIGTTO, have LPG volumes becoming available stem Algerienne de Navigation (CNAN) come a long way since then. As of from the processing of shale gas in the were amongst the shipowners driving 31 December 2016 the Society had US. The emergence of ethane as a new the feasibility investigation forward. 184 full and associate members and international gas trade over the past there were 19 LNG exporting nations year is another result of the US shale gas The meetings showed that there was and 39 importers. Furthermore, in phenomenon. Chemical manufacturers a strong measure of support for an 12 SIGTTO History
industry body amongst the participants and that it should be established without delay. Although the initial interest was centred on LNG carrier operations, the meetings included representatives from across the liquefied gas transport spectrum. It was quickly recognised that the working brief of the new association should encompass all types of gas carrier.
Furthermore, the ship/shore interface was identified as a critical area in safe and reliable ship and terminal operations. It was agreed that by also welcoming terminal companies as an integral part of the membership the new industry body would be providing Amongst SIGTTO’s many accomplishments is the development of competency standards a channel of direct liaison between for the various grades of deck and engineer officers on different types of gas carriers ship and terminal operators on matters impacting ship/shore interface safety. consultative status at the International The founder members understood Maritime Organisation (IMO). that an industry body with an all- The 10 founder members encompassing gas carrier and were as follows: By the end of the decade SIGTTO’s Panel Meetings programme had been terminal operator membership • El Paso LNG Company established; a number of publications would stand the best chance of • Energy Transportation were released to the industry; and developing and maintaining safety Corporation the Society had gained a reputation standards of the appropriate rigour • Malaysian International for impartiality and integrity in and comprehensiveness. Wide- Shipping Corp addressing gas shipping and terminal ranging participation would also • BP Tanker Company Ltd operational and safety issues. The facilitate the process of gaining public • Moore, McCormack latest in the two-day Panel Meeting acceptance of these standards. Bulk Transport Ltd series - the 62nd such event - was • P&O Bulk Shipping Ltd At the first board meeting, which was held in Cyprus in October 2016. • Gotaas Larsen Inc held in Bermuda on 5 October 1979, • Marine Transport Lines it was agreed that The Society of The 100th member joined the Society • Shell Tankers Ltd International Gas Tanker and Terminal in 1994 and in 1997 the number of • Exxon Operators Ltd was the most appropriate LNG ships in service passed the 100 mark. In 2008 SIGTTO facilitated the name for the new industry body. Within a year the SIGTTO revision of The International Code for SIGTTO was established as a Bermuda membership had grown the Construction and Equipment of exempted company with limited liability to 30 members, including Ships Carrying Liquefied gases in Bulk and with membership and shareholding several terminal operators. in the company open to those owning (IGC Code) on behalf of the IMO. or operating a liquefied gas carrier Interest in the use of LNG to power or a liquefied gas marine terminal. ships that are not gas carriers has been reason it is not surprising that many of these same topics continue to be the growing over the past decade and in The first technical issues the 2013 SIGTTO formed the Society for Society dealt with were as follows: focus of SIGTTO attention today, as standards and industry best practice Gas as a Marine Fuel (SGMF) to focus • Contingency planning procedures are revised and updated. on the development of safety standards • Ship/shore linked and industry best practices governing emergency shutdown Steady progress the use of LNG as a marine fuel. • Safe havens SIGTTO Annual Report During the early 1980s the General Growing interest in gas-fuelled ships • Cargo strainers 2016 Accounts and Purposes Committee (GPC) was and a healthy takeup in membership • Training established as SIGTTO’s technical enabled SGMF to be established quite These are generic and timeless subjects committee while the constitution quickly as a separate and autonomous that continue to evolve in tandem written and approved by the board industry association. The split has with technological advances and the at the time is still in place today. The enabled SIGTTO to revert back to and development of liquefied gas transport membership passed the 50 mark in 1982, focus on its core subject - the handling of infrastructure and logistics. For this the same year that SIGTTO was granted liquefied gases carried by sea as cargo. 13 Director’s List
SIGTTO Board of Directors (as of 31 December 2016)
Following the Spring 2016 Board Meeting in Boston in May SIGTTO’s Directors visited the USS Constitution in drydock
Mr David Furnival Bernard Schulte SM [President] Mr Abdullah Al-Sulaiti Nakilat Mr K Ban Chubu Electric [Vice President] Mr E Inamura Osaka Gas Mr Chris Bailey BP Shipping [Vice President] Mr T Hashimoto MOL Mr Luc Gillet Total SA Mr Riju Cherian BW Gas Mr S Tschudi-Madsen Höegh LNG Mr David Glendinning Teekay Shipping Mr Peter Justesen Engie Mr Keith Trotter SeaRiver Maritime (ExxonMobil) Mr A Kono NYK Mr Adri Postema Shell Mr Lloyd Bland Chevron Shipping Mr Steffen Jacobsen Evergas Mr Paul Oliver China LNG Shipping Mr P Pearman Conyers Dill & Pearman Mr Faisal Ismail MISC Mr E Mortimer Company Secretary SIGTTO Annual Report and Accounts 2016 Accounts and
SIGTTO Directors had the opportunity to enjoy a reflective moment at the Autumn 2016 Board meeting in Nagoya 14 Secretariat Today
SIGTTO Secretariat Staff
Andrew Clifton Cherian Oommen Robert Steele Technical General Manager Technical Advisor Advisor (ExxonMobil)
Ian Harrison Nikolaos Panagiotakopoulos Andrea Baseley IMO Representative Technical Support Officer Office Manager SIGTTO Annual Report
Susan Humphrey 2016 Accounts and Membership Manager
15 Committees and Subcommittees
Strategic Plan 2016 drives SIGTTO committees
Crew training programmes are quick to assimilate the lessons learned by the industry as a whole
In autumn 2015 SIGTTO’s Board of Help for General specifies that the results of a review Directors approved the Strategic Plan Purposes Committee of GPC’s role, function and methods 2016, a key document that outlines the be utilised to enhance the Society’s The General Purposes Committee direction the Society intends to take committee structure. Amongst the (GPC) is SIGTTO’s technical body and for the rest of the decade. Progress measures agreed to accommodate the meets twice a year. Chris Clucas of towards achieving the “2020 Vision” growing workload and ease the burden Bernhard Schulte Shipmanagement goals laid down in the Plan are reviewed on GPC is the establishment of, first, a stepped down as GPC chairman at the biannual Board meetings. Human Element Committee (HEC) and, towards the end of 2016 after a second, a range of subcommittees to It is necessary for SIGTTO to reappraise four-year tenure. His replacement support and augment GPC and HEC. its goals and adapt accordingly is Mark Hodgson of Shell. from time to time. This is especially The decision to form HEC recognises GPC has traditionally originated and true today which is a time of rapid the critical importance of the human coordinated all the internal projects technological advances and strong factor and training in the ongoing generated at SIGTTO. Completion industry growth across the gas effort to sustain a safety performance of the project work itself is carried shipping and terminal sector. which to date is unmatched by out by working groups comprising any other maritime sector. The goals laid down in the Strategic relevant experts from amongst the Plan 2016 will ensure that SIGTTO not membership. The technical publications Smooth interfacing arrangements only meets the industry’s changing which are the end-result of these between the various committees and requirements but also remains relevant projects are effectively the best subcommittees are an integral part of and fit for purpose in the drive to meet SIGTTO Annual Report practice procedures, recommendations the restructuring exercise. For example, the needs and expectations of the and Accounts 2016 Accounts and and standards that guide the the HEC chair is also a GPC member membership in the 21st century. Having industry’s day-to-day operations. and vice versa with the GPC chair. been a major driving force over the past four decades in achieving the exemplary To deal with a growing and increasingly The work of GPC itself will be safety record built up by gas shipping diverse industry, the Strategic Plan guided by an updated set of key and terminal operators, SIGTTO is 2016 calls for, amongst other things, performance indicators (KPIs) which committed to playing a central role in increased resources to be deployed reflect the evolving needs of today’s maintaining this record going forward. within the SIGTTO Secretariat. It also gas carrier and terminal operators. 16 Committees and Subcommittees
Human Element Committee (HEC) The first HEC meeting (HEC 01) was held in London on 13 September 2016. As initially configured, the group has 13 members and two observers while John Adams of Teekay is the inaugural chairman. Like GPC, the new HEC meets twice a year and reports to the Board. As part of the liaison arrangements between the two committees, it is intended that HEC meetings be held six weeks before those of GPC whenever possible. The first meeting of SIGTTO’s Human Element Committee was held in London in September 2016 The primary focus at HEC 01 was on agreeing the scope and activities of the new Committee. Discussions were wide-ranging and touched on a This is accomplished not least by sharing SIGTTO is confident that the measures number of themes and subject areas, lessons learned amongst the Society’s laid down in its Strategic Plan 2016, including the definition of the human members and promoting transparency including the new committee and element, management of incidents in reporting accidents and near misses. subcommittee structure and the focus on efficiency and production in and a review of the design and The Strategic Plan 2016 builds on this ergonomics of cargo control rooms. endeavour by setting additional goals, the allocation of resources, will yield optimum outcomes when it comes SIGTTO’s Board has recognised including revising the Society’s incident to meeting the needs of its members that, with the formation of HEC, reporting form; investigating how for the remainder of this decade and the responsibility for some of the incident trends and statistics can be beyond. Their implementation will publications in the Society’s portfolio utilised more effectively; proactively might more appropriately fall to the encouraging the sharing of incident also yield benefits for the industry in new Committee. It has been suggested data amongst the membership; general, not least through helping to that the following SIGTTO titles, and and establishing a safety reporting preserve the unparalleled safety record any necessary revision work that needs questionnaire for members. of gas tanker and terminal operators. to be carried out in future, should be transferred to the aegis of HEC:
1 Crew Safety Standards and Training for Large LNG Carriers. Essential Best Practices for the Industry (2003) 2 LNG Shipping Suggested Competency Standards - 2nd Edition (2008) 3 LPG Shipping - Suggested Competency Standards (2008) 4 LNG Steamship - Suggested Competency Standards for Engineers - Guidance and Suggested Best Practice for the LNG Industry in the 21st Century (2010) 5 Simulation Information Paper (2010) 6 Suggested Quality Standards for SIGTTO Annual Report
LNG Training Providers (2014) 2016 Accounts and
Sharing experience One of SIGTTO’s established, long- term aims is the fostering of a learning environment for the benefit of the The Strategic Plan’s updated set of key performance indicators recognise the membership and the industry in general. technological advances that have been made in gas carrier and terminal operations 17 Regulations and Standards
SIGTTO participation in the rulemaking process
The Liquefied Gas Senior Executive Forum technical visits are helping familiarise US Coast Guard personnel with gas ship and terminal operations
At any one time a number of rulemaking has a busy schedule of committee on 1 January 2016 and became fully initiatives are underway at the and subcommittee meetings each applicable on 1 July 2016 for all gas ships International Maritime Organization year. In the past IMO liaison work whose keel was laid on or after that date. (IMO), the European Union (EU) and was handled by one of the Society’s A comprehensive revision of the IGC the US Coast Guard (USCG) which technical advisers. However, SIGTTO Code was necessitated by the major impact gas carrier operators engaged has recently appointed as Ian Harrison advances in gas carrier technology in international trade. Because close as its first IMO representative. that have taken place over the past alignment of systems and procedures two decades. Following an agreement at the ship/shore interface is critical to The new position highlights the with IMO in 2007, SIGTTO coordinated safe and reliable gas ship operations, increasing complexity of the issues the revision work, managing the many maritime legislative decisions discussed at this UN agency and input of 140 experts from within the also affect terminal operators. the importance of these issues to liquefied gas shipping operations. Ian membership and amongst the wider SIGTTO plays a key role in the Harrison’s presence has enabled the gas shipping and storage industry. rulemaking processes of the various Society’s technical advisers to focus Drawn from 20 countries, the experts agencies, contributing information their attention on other projects of represented over 40 entities and necessary for the drafting of sound topical concern to the membership. participated in nine working groups. and effective regulations; representing The drafting work was completed SIGTTO Annual Report member interests on issues of gas ship IGC Code revision in 26 months, thanks to the efforts and Accounts 2016 Accounts and safety and reliability; and disseminating Amongst notable SIGTTO participation of 39 working group meetings in the results of the progress being at IMO in recent years was its 14 countries and six sessions of the made at the various regulatory preparatory work on the revised project’s steering group. The IGC Code meetings amongst the membership. International Code for the Construction update marked the first time that IMO is the leading international and Equipment of Ships Carrying IMO had delegated coordination of body for maritime safety and Liquefied Gases in Bulk (IGC Code). a major instrument update to a non- environmental protection affairs and The updated Code entered into force governmental organisation (NGO). 18 Regulations and Standards
Following submission of the draft for LNG carriers, with steam turbine, regulation requires shipowners and document to IMO in 2010, SIGTTO slow-speed diesel and diesel-electric operators to annually monitor, report thereafter participated in the IMO propulsion systems, and one reference and verify CO2 emissions for vessels consultation process which led to line for all other gas carriers. of 5,000 gross tons or larger calling the adoption of the revised IGC at any EU port. MRV data collection, The entry-into-force schedule covers Code for new ships in 2014 and its which will take place on a per voyage vessels whose shipbuilding contracts full implementation in July 2016. basis, is set to start on 1 January 2018. were placed on/after 1 September Subsequent to its adoption, IMO has 2015; whose keels were laid on/after 1 The EU is, however, still working on the also developed Interim guidelines for March 2016; or whose delivery is on/ details of the monitoring and verification the carriage of liquefied hydrogen; these after 1 September 2019. In May 2015 final rules. Under the current proposals were adopted in November 2016. IMO adopted guidelines on the survey LNG carriers will use volume, as per the SIGTTO has also cooperated with and certification of the amended EEDI custody transfer measurement system the Membrane Owners’ Group in the regime and approved the International (CTMS) readings, to determine the compilation of Awareness of Isolated Association of Classification Societies amounts of cargo carried and boil-off Vapour Pockets in Membrane Type LNG (IACS) Procedure PR38 for the gas (BOG) burned as propulsion fuel. Cargo Tanks. Published in November calculation and verification of EEDI. Other gas carriers will use mass, as per 2016, the document gives information bills of lading, to determine cargo carried. As part of the EEDI regime to operators regarding the action to be implementation, the phased reduction taken in the highly unlikely scenario of of the required EEDI is being Sulphur oxides a large angle of heel forming vapour reviewed as experience is gained (SOx) emissions pockets within a membrane tank. and EEDI data is collected by IMO. In October 2016 IMO confirmed 1 The new IGF Code January 2020 as the implementation European Union CO2 date for the reduction of the global SIGTTO also played a central role in emissions initiative sulphur limit in ship emissions from 3.50 the development at IMO of the new to 0.50 per cent m/m (mass/mass). IMO Regional and national bodies charged International Code for Ships using Gas also agreed a new programme item with responsibility for implementing or other Low Flash-Point Fuels (IGF focused on facilitating implementation maritime laws generally adopt the Code), an instrument which entered into of the new, stricter regime. Amongst the provisions of IMO, in support of global force on 1 January 2017. The IGF Code, initiative’s elements are consideration harmonisation and recognition of the as currently implemented, covers the of the new limit’s impact on fuel and international nature of maritime trade. use of LNG as a propulsion system fuel. machinery systems; verification issues However, on occasion, such rulemakers and control mechanisms/actions Work on Phase 2 of the IGF Code, will introduce measures which seek necessary to ensure compliance; and the which will include the use of fuel cells to either fast-track the scheduled development of a standardized system and methyl/ethyl alcohol as means IMO implementation timetable or for reporting fuel oil non-availability. of propulsion, is continuing under the introduce additional requirements purview of IMO’s Carriage of Cargoes specific to their territorial waters. Regulations 4 and 14 of MARPOL and Containers (CCC) Sub-committee. Annex VI, dealing with equivalency The European Union has always been and sulphur oxides (SOx) emissions In November 2014 IMO adopted interim rigorous in its enforcement of maritime in emission control areas (ECAs), guidelines covering the training of crews safety and environmental measures. have been the subject of attention on gas-fuelled ships and approved One example of where the paths of the by the European Union (EU) and the amendments to the Standards of EU and IMO have diverged is in their US Coast Guard in recent years. Training Certification and Watchkeeping respective regimes that have been put (STCW) Convention regarding training forward for monitoring carbon dioxide In 2015 the EU agreed to allow the for crew members on gas-fuelled ships. (CO2) emissions from ships. The IMO use of heavy fuel oil (HFO) pilot fuel requirements are laid down in Regulation as an alternative compliance option EEDI regime and gas ships 22A to MARPOL Annex VI whereas for steam turbine-powered LNG In 2014 IMO also adopted amendments European Commission is seeking to carriers under Directive 2012/33/EU, to its Energy Efficiency Design implement its Monitoring, Reporting provided that the dual-fuel mixture SIGTTO Annual Report Index (EEDI) regime, as laid down and Verification (MRV) regulation. has a sulphur content in mass of less and Accounts 2016 Accounts and in Annex VI to the Marine Pollution than or equal to 0.50 per cent. Introduced by IMO in October 2016, (MARPOL) Convention. Amongst the Regulation 22A to MARPOL Annex The requirement covers vessel new provisions are requirements that VI enters into force on 1 March 2018 operations in the North Sea ECA. LNG carriers with a non-conventional, and will require ships to collect and Recognition of this degree of dual-fuel type of propulsion system report data on their fuel consumption, equivalency obviates the need for comply with the EEDI regime. The starting from 1 January 2019. The MRV extensive modifications to > changes establish one reference line 19 Regulations and Standards
regulate US-flag and foreign vessels operating in US waters. In these various capacities the USCG conducts some level of design plan review in advance of vessel arrival or operation; onboard inspection and verification; and security checks to protect the vessel and the port. The Coast Guard established its Liquefied Gas Carrier National Center of Expertise (LGC NCOE) in 2009 to concentrate and coordinate its gas shipping expertise. Since then the responsibilities of the Center have increased exponentially, in tandem with the workload and manpower levels of USCG field inspectors directly involved The European Union equivalency ruling enables steam turbine-powered LNG carriers to burn heavy fuel oil as pilot fuel, provided that the with visiting gas carriers. In meeting its dual-fuel mixture has a sulphur content of 0.5 per cent or less obligations LGC NCOE has encouraged and benefitted from close liaison with industry, including safety-focused > steam-powered LNGCs, such as of 1 January 2021 and applicability to industry associations such as SIGTTO. separate distillate fuel systems and ships constructed on or after that date burner management changes. operating in the area. There are some USCG staff training is central to achieving limited exemptions in the new Tier III the necessary level of expertise amongst In the US the Code of Federal NOx ECA, including for duel-fuel, Tier a growing workforce committed to the Regulations (CFR) provisions have been II-compliant vessels entering or leaving gas shipping sector. In 2013 the USCG amended to align with MARPOL Annex the area in a gas-free condition, i.e. as a and SIGTTO signed a Mutual Training VI, exempting steam turbine-powered new ship or for repair or maintenance. Agreement to formalise their shared LNGCs (without distillate fuel systems) values and mission. More recently, built before August 2011 from the SOx Reduction of ship SIGTTO provided technical advice requirements until 2020. This decision during the preparation of Foreign Gas impacts vessel operations in those parts GHG emissions Carrier Examination Tactics, Techniques of the North American and Caribbean In October 2016 maritime nations and Procedures, a new 225-page ECAs over which the US has jurisdiction. agreed a “roadmap for developing a USCG recipe book on how to conduct comprehensive IMO strategy on the a foreign gas ship inspection. Nitrogen oxides compliance reduction of greenhouse gas (GHG) SIGTTO has also worked closely with In 2015 IMO approved a circular emissions from ships” extending to 2023. the USCG over the past two years as a providing guidance for the uniform The roadmap aims to build on measures co-sponsor of the agency’s three-day application of Tier III requirements already in place such as EEDI, the Liquefied Gas Senior Executive Forum. governing ship nitrogen oxides (NOx) Ship Energy Efficiency Management This annual event, held in Houston in emissions to dual-fuel and gas- Plan (SEEMP) and fuel consumption December and with attendances in fuelled engines. Tier III requirements excess of 250, looks set to become entered into force in the North data collection requirements. It will a permanent fixture on the calendar American ECA in January 2017. utilise the data collection results in decision-making as IMO discusses of all those concerned with safe gas The guidance highlights potential further potential measures for GHG ship and terminal operations. problems for gas carriers with Tier reduction. A fourth IMO GHG Study Both the USCG and SIGTTO are alert III-compliant duel-fuel engines when using data from 2012-2018 will be to the industry-wide challenges which cargo boil-off gas (BOG) may not initiated as part of the plan in 2019. lie ahead, not least the growth in spot be available onboard, e.g. while on market trading, the emergence of SIGTTO Annual Report maiden ballast voyages or heading US Coast Guard many new players in an expanding and Accounts 2016 Accounts and to/returning from a drydock. It also The sudden and rapid rise in gas carrier market, low freight rates and the need provides guidance on disclosing auxiliary traffic in US waters as a result of the for increasing numbers of mariners. control device limitations, i.e. low load, shale gas phenomenon in that country The two organisations recognise that manoeuvring and start/stop operations. and surging LNG, LPG and ethane the optimum way to maintain gas In July 2017 IMO adopted the North exports has had a major impact on the shipping’s exemplary safety record is Sea and Baltic Tier III NOx emissions US Coast Guard (USCG). The agency through close cooperation between control area, with an entry into force date has port and flag state jurisdiction to industry and regulatory agencies. 20 SIGTTO Annual Report and Accounts 2016 Accounts and
“Liquefied Gas Handling Principles” was last revised in 2000; the fourth edition issued in July 2016 represents a major update of SIGTTO’s premier publication 21 Industry in 2016
Gas shipping and terminal timeline 2016
A roundup of key gas shipping and terminal developments in 2016 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.
January February March
➜ The 9 million tonnes per ➜ Cheniere Energy ➜ A new global gas carrier trade annum (mta) Australia despatched the first cargo was inaugurated when the Pacific LNG (APLNG) to be liquefied at its Sabine 27,500m3 JS Ineos Intrepid project, the third Curtis Pass terminal. It was the first lifted the first shipment Island coal seam gas-to- export consignment from of ethane from Sunoco’s LNG scheme in the port of the lower 48 US states and Marcus Hook terminal near Gladstone, loaded its first LNG the first from a worldscale Philadelphia. US shale gas shipment. The 163,000m3 US liquefaction complex. production is making large Methane Spirit transported Chevron’s 160,000m3 Asia quantities of ethane available the inaugural cargo. Vision lifted the shipment to world markets, and 17 new and transported it to Brazil. high-capacity gas carriers ➜ The revised International have been built specifically Code for the Construction and ➜ Teekay took delivery, from to transport this product. Equipment of Ships Carrying Daewoo, of the 173,400m3 Liquefied Gases in Bulk (IGC Creole Spirit, the first ➜ Chevron’s Gorgon project in Code) entered into force on newbuilding LNGC to be Western Australia despatched 1 January 2016 and was fully propelled with a two- its first LNG cargo, onboard implemented on 1 July 2016. stroke, dual-fuel propulsion the 160,000m3 Asia Excellence system with fuel gas to Chubu Electric. supplied at high pressure. SIGTTO Annual Report and Accounts 2016 Accounts and
JS Ineos Intrepid and the seven other vessels in the Asia Excellence lifted the inaugural cargo at Evergas series of Dragon-class multigas carriers have Australia’s new Gorgon LNG export terminal opened up the international trade in ethane on Barrow Island 60km off the coast
22 Industry in 2016
April May June
➜ Sinopec’s 3 mta Beihai LNG ➜ Mitsui OSK Line’s 23,000m3 ➜ The 79,000m3 LPG carrier receiving terminal in China’s Triputra (ex-Surya Satsuma) Lycaste Peace became Guangxi region began launched the 300,000 tonnes the first gas ship to pass commercial operations with per annum (tpa) Benoa LNG through the Panama Canal’s an APLNG cargo transported receiving project on the new expanded locks. by the 163,000m3 Methane Indonesian island of Bali. The Spirit. Beihai is China’s 14th cargo was discharged to a LNG import terminal. dedicated floating storage unit (FSU) and then fed to a floating regasification unit (FRU).
➜ Shizuoka Gas commissioned a cargo reloading capability, the first such in Japan, at its Sodeshi import terminal.
July August October
➜ The laden 163,700m3 Maran ➜ Rotterdam’s Gate LNG ➜ Jamaica commenced LNG Gas Apollonia became the first opened its breakbulk terminal, imports when the 138,000m3 LNGC to transit the Panama complete with a third jetty, for Golar Arctic, serving as a Canal expanded locks. handling small-scale LNGCs. floating storage unit (FSU), transshipped cargo to the ➜ LNG imports were received for ➜ Abu Dhabi commenced 6,500m3 Coral Anthelia at the first time at the Dunkirk LNG imports utilising the its Jamaica coast mooring terminal in France and the 138,000m3 FSRU Excelerate point, for delivery to the Pori terminal in Finland. moored at Ruwais. Abu nearby Bogue power Dunkirk is France’s fourth Dhabi is the Middle East’s plant in Montego Bay. SIGTTO Annual Report LNG receiving facility while sixth LNG importer, joining and Accounts 2016 Accounts and Pori is Finland’s first. Dubai, Kuwait, Egypt, Jordan and Israel. ➜ BP announced it will build Train 3 at its Tangguh export terminal in eastern Indonesia.
23 Industry in 2016
Gas shipping and terminal timeline 2016
November December
➜ Daewoo delivered the 172,000m3 Christophe de ➜ The fully refrigerated, 87,000m3 Ethane Crystal, Margerie, the world’s first icebreaking LNG carrier, the world’s first very large ethane carrier to Sovcomflot. She is the inaugural vessel in a (VLEC), entered service. The ship was built series of 15 such ships that the yard is building for by Samsung for Reliance Industries and the use in lifting Yamal LNG cargoes at the project’s transport of ethane from the US Gulf to India. Sabetta LNG plant high in the Russian Arctic. ➜ The 7,920 dwt ro-ro cargo ship Searoad Mersey II ➜ Colombia commenced LNG imports using commenced operations on the Bass Strait the 170,000m3 FSRU Hoegh Grace moored crossing, becoming the first LNG-powered at Cartagena. Sociedad Portuaria El Cayao vessel in the Australian coastal trades and the (SPEC) has chartered the vessel for 20 years. first dry cargo ship to use a roll-on/roll-off ISO tank-based LNG fuel supply system. ➜ PFLNG Satu, the world’s first floating LNG production (FLNG) vessel, started processing gas on the Kanowit field off Sarawak in Malaysia. The vessel, which has 180,000m3 of storage capacity ➜ The Bontang export terminal in Indonesia’s East for LNG and 20,000m3 for condensate, was built Kalimantan shipped its 9,000th cargo. The facility by Daewoo for Petronas and is able to produce started operations in July 1977 and is currently up to 1.2 million tonnes per annum (mta) of LNG. running half of its original eight LNG trains.
Christophe de Margerie is built to the Arc7 ice class The delivery of Hoegh Grace earlier in the year and is the world’s first icebreaking LNG carrier enabled Colombia ro commence LNG imports
Summary terminals were commissioned. The seaborne trade in LNG increased Of the latter, five were based on by 7.5 per cent in 2016 compared to the use of floating storage and the previous year, to 263.6 million regasification units (FSRUs). tonnes (mt). Five new liquefaction trains were commissioned in The seaborne trade in LPG rose Australia, two in the US and two by 6 per cent in 2016, to reach SIGTTO Annual Report in Malaysia - one onshore and 90.7 mt. A 25 per cent jump in US and Accounts 2016 Accounts and one offshore. Four new countries exports, to 25.4 mt, underpinned - Colombia, Finland, Poland and the growth in global trade. A Jamaica - joined the LNG importers record annual total of 44 very league table, boosting the total large gas carriers (VLGCs) joined Global movements of LPG expanded by 6% in 2016 to 39, while 11 new regasification the LPGC fleet during the year.
Sources: International Group of LNG Importers (GIIGNL); Society of International Gas Tanker and Terminal Operators (SIGTTO); company announcements 24 Membrane tanks are currently the most popular choice of containment system for LNG carriers SIGTTO Annual Report and Accounts 2016 Accounts and
25 Widening Remit
SIGTTO broadens its work programme
Jayanti Baruna, the first compressed natural gas carrier, fitting out at the shipbuilding yard in China
SIGTTO’s membership continues to SIGTTO’s Board of Directors and The 2,200m3 Jayanti Baruna is classed expand in tandem with the robust General Purposes Committee (GPC) by ABS according to its Guide for Vessels growth and diversification of global monitor industry developments on an Intended to Carry Compressed Natural gas transport. As an example, several ongoing basis, with a view to further Gases in Bulk. The containment system newly appointed members in recent broadening the membership base as features 832 linked vertical cylinders able years are operators of ethane carriers the need arises. One such topic now to hold gas at a pressure of 250 bar. The and terminals. Thanks to its widespread coming onto the Society’s radar is Chinese firm CIMC ENRIC constructed availability, especially in the US, and the transport of liquefied hydrogen the cylinders which stand 12m high and its suitability as a petrochemical by sea in dedicated gas carriers. have a diameter of 615mm and a plate feedstock, ethane has emerged thickness of 19mm. The configuration as a strong gas shipping market Compressed natural gas ships gives the gas carrier a lightship weight of within the space of a few years. A new era in gas transport was 6,000 tonnes and provides a cargo hold time of eight days. The 110m long vessel’s The ethane ship and terminal operator inaugurated in January 2017 when Wärtsilä 9L34DF dual-fuel engine will influx was pleasing to note and the Jayanti Baruna, the world’s first enable a 13.9 knot service speed. Society continues to encourage compressed natural gas (CNG) carrier, new members to join, including by was launched by the Hantong Ship The International Gas Carrier (IGC) SIGTTO Annual Report reviewing the membership eligibility Heavy Industry yard in China. The Code covers the carriage of gases and Accounts 2016 Accounts and of new industry sectors. SIGTTO’s vessel will be utilised by Pelayaran that are liquefied but not compressed byelaws were recently amended to Bahtera Adhiguna, a subsidiary of natural gas. However, although CNGCs enable operators of compressed Indonesia’s state-owned power are not addressed directly in IMO natural gas (CNG) carriers and company Perusahaan Listrik Negara regulations, the philosopy and intent container ships carrying LNG in (PLN), to transport natural gas from of the IGC Code can be appied to such cryogenic ISO tank containers to join Indonesian fields in East Java to remote ships, with appropriate modifications. the Society as associate members. communities on the island of Lombok. The same hazards covered in the IGC 26 Widening Remit
Code for an LNG carrier, for example, should be considered for a CNGC.
Although the ABS Guide for Vessels Intended to Carry Compressed Natural Gases in Bulk uses the same format as the IGC Code, the Code’s provisions were modified to take into account the use of the risk assessment method in ship design, active and passive fire safety scenarios and the characteristics of CNG containment systems. The latter provisions encompass containment system material requirements in terms Kawasaki and Shell plan to build a pilot vessel as the first step towards of fatigue and fracture; in-service the commercial transport of liquefied hydrogen by sea inspections; specific safeguards; pressure protection in cargo holds; Energy affiliate and Grupo Sousa Air Liquide and Total, established the and probabilistic limit state design. of Portugal. Carib Energy employs Hydrogen Council to promote use a fleet of tanks to ship LNG from of the gas as an energy source. Tank containers by sea Jacksonville, Florida to Puerto Rico Although hydrogen transport Tank containers are helping to spread on behalf of several customers while technologies are still in their infancy, small-scale LNG globally in a range of Sousa’s tanks load LNG at the Sines two Council members - Shell and ways, including distribution by sea to import terminal in Portugal from where the Japanese shipbuilder Kawasaki remote locations and island communities they move by road and container Heavy Industries (KHI) - are jointly keen to replace diesel fuel with ship to the island of Madeira. developing designs for LH2 carriers. competitively priced, clean-burning gas. Elsewhere, Barbados has commenced Iwatani and Electric Power Development An LNG tank container is essentially an LNG imports using 40-foot ISO tanks, (J-Power) are also participating in the insulated, cryogenic IMO Type C pressure again sourced from Florida, while such initiative. Japan is looking to import vessel fitted within an ISO standard- units are being utilised in Indonesia hydrogen from Australia, following size frame of either 20, 30 or 40 foot for domestic coastal distribution. In its gasification from brown coal. in length. The intermodal attributes of Spain Enagás has commenced tank The first KHI/Shell project is the design ISO tanks obviate the need for cargo container shipments to Tenerife, with the of a pilot small-scale LH2 carrier of transfers at intermediate stages along LNG having been loaded at its Huelva 2,500m3 in capacity. The ship’s two the supply chain. Laden units can be import terminal on the mainland. Type C cargo tanks would have vacuum switched between road trailer chassis, insulation to ensure that the cargo’s flatbed rail cars and container ships with The tank container movements to the carriage temperature of -253˚C - standard container-handling equipment. Canary Islands signal the start of the trade and will eventually be replaced liquefied hydrogen’s boiling point - is The 40-foot unit is the tank of choice by shipments of larger volumes in bulk maintained. The principals hope to in the majority of projects requiring a in LNG carriers. Notwithstanding the construct the ship, for completion multimodal solution. Such tanks hold up temporary nature of tank use in the by 2020, and in the meantime are to 43.5m3, or 17.25 tonnes, of LNG. The Spanish case, the future for LNG ISO also studying the feasibility of large unit’s insulation system ensures holding tanks is bright. Forecasters predict LH2 carriers of up to 160,000m3. times of considerable duration before a compound annual growth rate of Although there are currently no the buildup of vapour pressure inside 8-9 per cent through 2022 for LNG specfic requirements in the IGC Code the vessel opens the pressure relief valve movements in tank containers. governing the design and construction and allows the venting of boil-off gas. of LH2 carriers, IMO adopted Interim Relatively low fill levels, of 80 per cent Liquefied hydrogen carriers Recommendations for the Carriage say, will usually provide holding times There have been occasional preliminary of Liquefied Hydrogen in Bulk in in excess of 75 days for a tank with investigations into the transport of November 2016 in response to the a good insulation system. National liquefied hydrogen by sea in the past but growing interest in hydrogen transport. authorities will usually allow fill levels of it has only been in recent years that the SIGTTO Annual Report In March 2017 the Tokyo-based up to 95 per cent if the likely required study of this gas carrier cargo has gained 2016 Accounts and classification society ClassNK transit time is well below the unit’s momentum. Hydrogen is regarded as released its Guidelines for the Safe stated maximum holding time. the ultimate clean-burning gas energy Construction and Operation of source, with no carbon dioxide (CO₂) Amongst the notable operators Liquefied Hydrogen (LH2) Carriers, given off during its combustion. beginning to make use of 40-foot tank based on the IMO guidelines. ClassNK containers for the seaborne distribution Early in 2017 a group of 13 major participated in the risk assessment of LNG is Crowley Maritime’s Carib industry players, including Engie, Linde, of the pilot LH2 carrier’s design. 27 Panel Meetings & Regional Forums
SIGTTO meetings smooth two-way communications
The 110 delegates at the South American gathering in Buenos Aires in September 2016 was a record turnout for SIGTTO Regional Forum
SIGTTO’s busy schedule of Panel SIGTTO normally organises two icebreaking LNG carrier and the lead Meetings and Regional Forums Panel Meetings per annum, one in vessel in a series of 15 that will load enables the Society to maintain a the spring and one in the autumn, cargoes at the Yamal LNG terminal on regular and ongoing dialogue with while the Regional Forum programme Ob Bay high in the Russian Arctic. its full membership. The events has gradually been built up to provide opportunities for not the extent that there now around Dimitry Rusanov, head of Sovcomflot’s only the Secretariat and members 11/12 such events each year. gas carrier division, profiled the SCF participating in current project gas fleet and its LNGC ice training working groups to highlight the key Cyprus Panel programme in his keynote speech. The issues concerning the greater industry There was no spring Panel in 2016, milestone LNGC, named Christophe but also the greater membership to as the event would have clashed with de Margerie, marks the culmination contribute to the discussions and the international LNG 18 conference in of a rapid gas ship evolution at the raise new matters to consider. Perth where Andrew Clifton, SIGTTO’s company that began in 2006 with General Manager, chaired the shipping the purchase of the 1969-built, Panel Meetings are the main SIGTTO SIGTTO Annual Report session. The autumn Panel - the 71,500m3 SCF Arctic (ex-Arctic Tokyo) events, attracting global audiences and Accounts 2016 Accounts and 62nd in the series to date - was held and SCF Polar (ex-Polar Alaska) and of member companies and guest in Cyprus on 5-6 October 2016 and proceeded with the construction speakers for a busy two days of hosted by SCF Management Services . of the 145,000m3 ice class IC, Moss presentations and discussions. Usually spherical tank LNGC newbuildings SCF was proud to update the Panel of a single day’s duration, Regional Grand Elena and Grand Aniva. Forums extend the outreach, being delegates on the parent Sovcomflot aimed at the Society’s members group’s newest LNG carrier. The There followed two further pairs of within particular geographical areas. 172,600m3 ship is the world’s first LNGC newbuildings for Sovcomflot - 28 Panel Meetings & Regional Forum
Velikiy Novgorod and Pskov in 2014 to Vice-Admiral Satoshi Nakajima, of the USCG’s Liquefied Gas Carrier and SCF Melampus and SCF Mitre commandant of the Japan Coast National Center of Expertise (LGC in 2015. All four offer 170,000m3 of Guard. The meeting has set the stage NCOE) outlined some of the challenges cargo-carrying capacity in membrane for the development of closer relations facing the personnel in his agency as tanks, are propelled by dual-fuel, between the two organisations. the US liquefied gas surge takes hold. four-stroke engines and are built The last time SIGTTO was in India was to the ice class IC standard. USCG inspectors are currently handling for a Panel Meeting, also in Mumbai, approximately 1,000 gas carrier As Sergey Popravko, managing in April 2006. India is a country with arrivals at US ports per annum and this director of SCF Management Services, rapidly expanding imports of a range number is expected to climb to 3,700 reported to the Panel audience, of liquefied gases and the Society is visits by 2020. The dramatic increase amongst the Sovcomflot fleet with keen to follow up the Mumbai 2016 in traffic raises the issue of having a high ice class are five 70,000 dwt gathering and make the Indian Regional a sufficient number of adequately Arc6 oil shuttle tankers with Azipod Forum an annual event going forward. trained inspectors in place, backed propulsion units serving the Varandey by the necessary field support in and Prirazmomnoe projects in the Arctic US Coast Guard liaison a nationally consistent manner. waters of the eastern Barents Sea. SIGTTO’s December 2016 Pan American Regional Forum in Houston Another challenge is the need to The training programme for the ensure that US domestic regulations Christophe de Margerie crew members aligned, for the second year running, with the new series of Liquefied Gas are updated and fully compatible has been able to incorporate sea time with the international requirements. onboard both these Arctic shuttle Senior Executive Forums that was organised by the US Coast Guard A project is currently underway to tankers and the company’s LNGCs. harmonise US rules with IMO’s revised The use of simulators, including at the (USCG) in tandem with SIGTTO and International Gas Carrier (IGC) Code. specialist SCF college in St Petersburg, the Society for Gas as Marine Fuel and attendance at targeted STCW/ (SGMF). The combined, three-day Because many of the technologies now event attracted a turnout of over 250. SIGTTO courses are amongst the other being developed, not least in the LNG key elements of the training regime. The popularity of this new event in bunkering sector, are innovative, it is the liquefied gas calendar reflects the important that Coast Guard personnel Regional Forums abound current high level of interest in gas develop their technical capacity Of the busy Regional Forum timetable carrier and terminal activities in the US, in tandem with the industry. The of meetings in 2016, several merit a due not least to record LPG exports, strengthening of industry partnerships, mention. First, the South American the start of worldscale LNG and ethane including with SIGTTO, is integral to Regional Forum held in Buenos exports and the introduction of LNG- the establishment of this in-house Aires on 27 September and hosted powered ships and LNG bunkering. capability and will enable the USCG, by YPF had an attendance of 110, In one of the Executive Forum in turn, to provide consultation and an astonishing, and in fact a record, presentations Commander Jason Smith advice as the industry grows. number for a Regional Forum.
The event was the second South American Forum, the first having been staged in Montevideo in 2014, and the SIGTTO’s December 2016 Pan American Regional Forum in first in the Argentine capital. The Buenos Houston tied in with the US Coast Guard-backed Liquefied Gas Aires Forum included a technical visit Senior Executive Forum for the second year running to the Escobar LNG import terminal on the River Plate where cargoes are received by means of a floating storage and regasification unit (FSRU).
The year finished off with a flurry of Regional Forums. Six meetings - in Singapore, Tokyo, Perth, Doha, Houston and Mumbai - took place in the seven weeks between 21 SIGTTO Annual Report
October and 7 December 2016. 2016 Accounts and The SIGTTO Asian Regional Forum in Tokyo in November and the Indian Regional Forum in Mumbai in December were the first such events to be held in their respective countries. At the Tokyo Forum SIGTTO was introduced 29 New Publications
Crucible of industry best practice guidance
As was acknowledged at the SIGTTO Liquefied design, propulsion systems, size Board of Directors meeting at Nagoya Gas Handling of fleet, floating regasification and in Japan in November 2016, the Society reliquefaction, Arctic LNG, containment had issued four paid publications over Principles systems, improved vessel energy and the previous two years while three environmental efficiencies, vessel LGHP4, the more were due in next 12 months. capacities, equipment technology, latest version of industry best practices and legislation. The entry into force of the revised SIGTTO’s flagship International Code for the Construction publication, was Although the new publication serves as and Equipment of Ships Carrying issued in July a valuable reference work for all those Liquefied Gases in Bulk (IGC Code) in 2016, following involved in the design, construction July 2016 and the new International approval of the 530-page document and operation of gas carriers and Code of Safety for Ships using Gases at the spring 2016 Board meeting in terminals, it has been compiled or other Low-Flashpoint Fuels (IGF Boston. The new edition incorporates primarily for serving ships’ officers and Code) in January 2017, along with extensive updates and a wide range terminal staff who are responsible for the publication of the 4th Edition of of new material to reflect the many cargo handling operations. Particular Liquefied Gas Handling Principles: On changes and technological advances emphasis is placed on the importance of Ships and in Terminals (LGHP4), had that have taken place in the gas shipping understanding the physical properties represented a major clearing of the and terminal industry since the third of liquefied gas cargoes in relation decks. The completion of these major edition was published in 2000. to the operation of gas-handling undertakings is enabling the Society to Topics impacted by the changes equipment and systems on the ship catch up on a range of other projects. include, but are not limited to, vessel and at loading and discharge jetties.
LNG Emergency Release Systems effective performance of LNG terminal with a good understanding of emergency release systems (ERS) is the role and functioning of LNG essential for both safeguarding life ERS,” states David Ervin, senior and equipment and maintaining the LNG marine operations adviser at industry’s exemplary safety record Chevron Shipping and chairman of the SIGTTO working group. “Vessel Compilation of the document was www.sigtto.org Society of International Gas Tanker & Terminal Operators Ltd operators and crew will also find the First Edition prompted by a number of incidents document a valuable reference tool.” LNG Emergency Release Systems involving ERS malfunctions at Recommendations, Guidelines and Best Practices LNG terminals in recent years. First Edition The ERS working group used the A SIGTTO working group was bow-tie method to analyse the established in 2014 to address the risk of inadvertent ERS actuation issues, make recommendations and and the failure to actuate when provide guidance to industry. required. The ERS publication also A modern ERS is comprised of two includes suggested competencies ball valves with an integrated powered and training levels for personnel emergency-release coupler (PERC) whose job functions bring them into contact with such systems. Emergency between them. These systems, which are independent of the vessel, are In describing a principal conclusion release systems activated by position-monitoring of the document, David Ervin stated, sensors. On occasion problems Following approval of the document “The SIGTTO working group agreed
SIGTTO Annual Report have arisen due to the secondary by the Nagoya Board the Society that the use of the double ball valve uses to which some terminals have and Accounts 2016 Accounts and published LNG Emergency Release for secondary purposes and the put the ERS double ball valves. Systems - Recommendations, added complexity such use introduces Guidelines and Best Practices in “The new publication has been increase the risk of an incident. The January 2017. The new publication prepared to provide project document recommends that the signals SIGTTO membership development teams, terminal ERS should not be used for anything recognition of the fact that that the operators and maintenance personnel other than its primary purpose.” 30 New Publications
SIGTTO has compiled industry best practice guidelines for actions to be taken by gas terminal support vessels to prevent and mitigate accidents
Support craft Each gas terminal, as part of its onshore and the new offshore at offshore gas emergency response plan, has documents lay down what is believed facilities traditionally specified the performance to be industrywide best practice standards that the specialist assist guidelines for actions to be taken SIGTTO also published vessels it utilises must comply with. by gas terminal support vessels to Support Craft GPC formed the working group prevent and mitigate accidents. at Liquefied Gas because the variable nature of these Facilities: Principles of SIGTTO’s working group employed a requirements had increased over Emergency Response and Protection risk assessment methodology to define the years as the global network - Offshore in 2016. At its 66th the example scenarios and to put the of gas terminals has spread. meeting, in October 2012, SIGTTO‘s appropriate response measures into General Purposes Committee (GPC) The working group made good context. Although the guidance covers had established a working group progress and SIGTTO issued, in a range of vessels that provide support tasked with defining the expected 2015, Support Craft at Liquefied Gas services at gas terminals, it is aimed response, by emergency response Facilities: Principles of Emergency primarily at the tugs which assist with craft, during incidents involving Response and Protection - Onshore gas carrier handling and berthing liquefied gas carriers at onshore as the first of what was to be a and which, in some cases, remain in terminals and offshore facilities. pair of documents. Together, the attendance while the ship is moored.
Other recent documents the LNG/ LPG shipowner/operator and entitled LPG Ship/Shore Interface The Nagoya Board also approved the ship operator’s wider competence - Best Practice for LPG/Chemical two other completed documents - management systems used in officer Gas Vessels and Terminals. recruitment and development. Awareness of Isolated Vapour Pockets Another project underway is a revision in Membrane Type LNG Cargo Tanks Further SIGTTO working groups of the 2011 SIGTTO publication Manifold and SIGTTO LNG and LPG Experience have been established to tackle new Recommendations for Liquefied Matrix Guidelines for Use - both of projects. The GPC, at its 70th meeting Gas Carriers. The working group which have now been released. in October 2014, formed a group of involved is cooperating with the Oil experts from the membership tasked Companies International Marine Forum The latter publication points out that
with identifying the possible root causes (OCIMF) on the initiative and set to SIGTTO Annual Report when evaluating risk, in the event
of LPG ship/shore interface-related complete its draft document in 2017. 2016 Accounts and of non-compliance with a particular incidents and updating or rewriting element of the SIGTTO LNG/LPG Next on the agenda are a new SIGTTO’s 1997 publication Ship/Shore Officer Experience Matrix, issued in publication on gas detection and Interface Safe Working Practice for LPG 2011, consideration should be given to a revision of one of SIGTTO’s and Liquefied Chemical Gas Cargoes. other mitigating factors. These include oldest publications, Guidelines bespoke training, the manning scale The end result of the work will be for the Alleviation of Excessive in place, duration of employment with a publication issued in 2017 and Surge Pressures on ESD. 31
SIGTTO Paid Publications LNG Emergency Release Systems Release Emergency LNG
www.sigtto.org First Edition First
Society of International Gas Tanker & Terminal Operators Ltd
Recommendations,LNG Emergency Guidelines Release and Best SystemsPractices
First Edition LNG Emergency Release Liquefied Petroleum Gas Guide to Contingency Planning Systems - Recommendations, Sampling Procedures for the Gas Carrier Alongside and Guidelines and Best Practices (2010; £25.00) Within Port Limits, 2nd Ed (2017; £125.00) (1999; £40.00) LNG Steamship Suggested Liquefied Gas Handling Competency Standards Contingency Planning and Crew Principles on Ships and in for Engineers Response Guide for Gas Carrier Terminals, 4th Ed (LGHP4) (2010; £125.00) Damage at Sea and in Port (2016; £275.00) Approaches, 3rd Ed LPG Shipping Suggested (1999; £40.00) Support Craft at Liquefied Competency Standards Gas Facilities: Principles of (2008; £125.00) A Risk Based Approach Emergency Response and for the Evaluation of Protection - Offshore LNG Shipping Suggested Firefighting Equipment (2016; £125.00) Competency Standards, 2nd Ed on Liquefied Gas Jetties (2008; £125.00) (1999; £40.00) Support Craft at Liquefied Gas Facilities: Principles of Jetty Maintenance Introduction to the Design Emergency Response and and Inspection Guide and Maintenance of Cargo Protection - Onshore (2008; £175.00) System Pressure Relief (2015; £125.00) Valves Onboard Gas Carriers Hydrates in LPG Cargoes (1998; £40.00) SIGTTO Information Papers, (2008; £75.00) Consolidated Ed 2014 Ship/Shore Interface (IP No 16) (2014; £175.00) Ship Vetting and its Safe Working Practice for LPG and Application to LNG Liquefied Chemical Gas Cargoes Guidance for LNG Carriers (2004; £50.00) (1997; £40.00) Transiting the Panama Canal (2014; £125.00) Liquefied Gas Fire Site Selection & Design Hazard Management (IP No 14) for LNG Ports & Jetties Ship-to-Ship Transfer Guide (2004; £175.00) (1997; £40.00) for Petroleum, Chemicals and Liquefied Gases Crew Safety Standards Quantity Calculations LPG (2013; £225.00) and Training for Large LNG and Chemical Gases, 2nd Ed Carriers: Esssential Best (1997; £40.00) Liquefied Gas Carriers: Your Practices for the Industry Personal Safety Guide (2003; £75.00) Accident Prevention (IP No 4) (2012; £25.00) The Use of Hoses and Hard-Arms LNG Operations in Port Areas at Marine Terminals Handling Manifold Recommendations (2003; £75.00) Liquefied Gas, 2nd Ed for Liquefied Gas Carriers (1996; £40.00) (2011; £125.00) Guide to Contingency Planning for Marine Terminals Handling Guidelines for the Alleviation of
SIGTTO Annual Report Liquefied Gas Fire Hazard Liquefied Gases in Bulk, 2nd Ed Excessive Surge Pressures on ESD Management Video, 2nd Ed (2001; £40.00) (1987; £30.00) and Accounts 2016 Accounts and (2011; £550.00) LNG Log 24 (2000; £50.00) Details of more than 60 free Application of Amendments to SIGTTO publications, newsletters, Gas Carrier Codes Concerning Guidelines on the Shipboard annual reports and articles are Type C Tank Loading Limits Odourisation of LPG given on the the Society’s website: (2011; £25.00) (2000; £40.00) www.sigtto.org
32 2016 Accounts
SIGTTO
Society of InternationalSociety Gasof International Tanker Gasand Tanker Terminal and Operators Limited Terminal Operators Limited
Statement of Comprehensive Income For the year ended 31 December 2016 Statement of Comprehensive Income For the year ended 31 December 2016
Note 2016 2015 Revenue
Members’ annual dues 1,316,593 1,138,661 Royalties 321,404 133,204 Interest receivable 2,000 2,689
2(b) 1,639,997 1,274,554
Expenditure
Employee benefit expense 5 413,401 394,590 Office supplies, web and library costs 61,934 53,151 Members’ meetings 184,360 177,520 Rents, rates and services 127,518 132,279 Bad debts 5,600 - Professional fees 395,899 304,485 Project costs 978 6,477 Communications 3,989 4,145 Depreciation 4 1,461 1,350 Miscellaneous expenses 6,375 10,091
1,201,515 1,084,088
Surplus for the year £ 438,482 £ 190,466
SIGTTO Annual Report
2016 Accounts and
33
2016 Accounts SIGTTO
StatementStatement of of Financial Position Position at 31 at December 31 December 2016 2016
Note 2016 2015
Non-current Assets
Property, Plant and Equipment 4 4,239 456 Non-current element loan receivable 6 116,667 233,334
120,906 233,790
Current Assets
Trade and other receivables 6 965,933 483,201 Cash and cash equivalents 2,241,132 1,729,638
3,207,065 2,212,839
Total Assets £ 3,327,971 £ 2,446,629
Current Liabilities
Trade and other payables 7 816,658 375,474
Total Liabilities 816,658 375,474
Capital and Reserves
Called up share capital 8 31,789 30,113
Retained earnings 2,479,524 2,041,042
Total Equity 2,511,313 2,071,155
Total Liabilities and Equity £ 3,327,971 £ 2,446,629
SIGTTO Annual Report and Accounts 2016 Accounts and
34 PHOTO CREDITS: Front cover - Gate terminal; Page 2 - BW Gas; Page 4 - BW LPG; Page 6 - Engie/NYK Line; Page 10 - Avance Gas; Page 12 – Gazprom Marketing & Trading/Singapore LNG; Page 13 – Chevron; Page 16 – Chevron; Page 17 - OLT Offshore LNG Toscana/GasLog LNG;Page 18 – Cameron LNG; Page 21 – BW Gas; Page 22 – Evergas and Chevron; Page 24 – Höegh LNG, SCF Management Services and Geogas; Page 25 – Lloyd’s Register; Page 26 – Wikipedia; Page 27 - Kawasaki Heavy Industries; Page 31 – Svitzer; Page 35 – Cameron LNG SIGTTO
Society of International Gas Tanker and Terminal Operators Ltd (SIGTTO) 17 St Helen’s Place London EC3A 6DG, UK Tel: +44 20 7628 1124 Fax: +44 20 7628 3163 E-mail: [email protected] Web site: www.sigtto.org Twitter@SIGTTO