LNG Fuelling AN LNG JOURNAL PUBLICATION 1st Quarter 2019 Global LNG fleet and supply chain FUELLING NEWS set to double AGENDA The global LNG-fuelled fleet is set to double by 2022, as demand for bunker fuel LNG NETWORKS grows ‘significantly’, according to research by The Oxford Institute for Energy Gazprom backs LNG bunker prospects 2 Studies (OIES). OUTLOOK The findings, published in a recent Coalition forecasts working paper from OIES, are accelerating LNG fuel based on the growth of existing use in 2019 3 LNG supply chains in Northern Eu- ROAD TRANSPORT rope and suggests the global LNG- HAM expands Spanish fuelled fleet is “set to double in LNG network 4 size”, with all but nine of the cur- rent orderbook due for delivery by the end of 2022. “The future growth of the LNG- fuelled fleet may be estimated by Vessels in operation and on order by type in the North Sea - Baltic Sea the order book for newbuild vessels region ARGENTINA and for retrofit projects to convert Galileo introduces existing vessels to LNG propulsion… ment in LNG as ship owners are “Demand for LNG as a shipping first LNG truck fleet Looking forward, ferries and service faced with an improving cost ben- fuel is likely to rise at a steady in Argentina 5 vessels remain important, but it is efit for using the fuel. pace, rather than in a sudden ‘big BUNKER VESSELS the continued growth in the num- “Given the importance of the bang’. This should allow time for Rotterdam deploys ber of oil/chemical tankers and changes that could take place after the development of the necessary LNG dredger Ecodelta 7 new growth in crude oil tankers, 2020… the introduction of more additional infrastructure, and pre- NEW ORDERS cruise ships, and container ships stringent environmental regula- vent marine fuel demand from Sovcomflot orders LNG- that stands out,” Jack Sharples, tions can solve the ‘chicken and acting as a source of volatility on fuelled tanker trio 8 Research Fellow at The Oxford In- egg’ dilemma of energy companies the global LNG market,” stitute for Energy Studies and au- not wishing to invest in LNG INFRASTRUCTURE BioLNG EuroNet thor of the report, commented. bunkering infrastructure until there Fuel demand to double plans refuelling is substantial demand for LNG as a by 2022 infrastructure 9 IMO limits drive steady marine fuel,” Sharples adds. Linked to this growth in fleet size, growth Despite the promise of substan- global demand for LNG bunker STANDARDS DHSC gains AiP for Sharples’ research suggests that tial growth driven by the IMO rules, fuel is also expected to increase LNG Aframax design 11 new global sulphur limits, set to the report suggests growth will be significantly, more than doubling be introduced by the International gradual and long-term rather than by the end of 2022, according to DEVELOPMENT Maritime Organization in 2020, occurring abruptly after the imple- OIES as total demand reaches 3 to Eagle LNG completes first bunkering of will drive a new wave of invest- mentation date in 2020. 3.5 tonnes of LNG. Taino 12 “With LNG propulsion being ‘phased in’ through newbuilds rather than retrofits, that rate of growth could continue through the 2020s, as the global fleet ages and is replaced, vessel-by-vessel,” the OIES report notes. The Oxford Institute for En- LNG ORDERBOOK ergy Studies is a Recognized Inde- LNG small scale fleet 14 pendent Centre of the University LNG-fuelled confirmed of Oxford, focussed on research newbuilds 16 into the economics and politics of LNG-fuelled ship fleet 19 LNG vessel refuelling international energy. n 2 l NEWS LNG Fuelling 1st Quarter 2019 Gazprom backs LNG bunker prospects The board of directors of Russian national energy firm Gazprom has backed plans to support new LNG bunkering investment in line with expected growth in LNG consumption. The board announced plans to compressor station on the Russian options at sea or build on its existing expertise in coast of the Baltic Sea. within designated LNG as a bunker fuel via a range Core process equipment at Emission Control of investments, firstly across Rus- the complex is under construction Areas, such as the sia and then globally. at present alongside an onshore Baltic and North “In 2020, MARPOL will imple- LNG storage tank and berthing Seas. ment a global 0.5 per cent sulphur facilities. The group plans to use “Gazpromneft cap for marine fuel. This measure is the plant’s output to, inter alia, Marine Bunker, the expected to significantly decrease bunker marine vessels in Russia Gazprom Group’s the use of fuel oil and increase when the complex comes onstream single operator for the consumption of LNG as a fuel in 2019. selling LNG to end meeting all of the environmental The board of directors has also consumers in the Gazprom Portovaya Compressor Station requirements set by MARPOL,” a instructed Gazprom’s Management bunkering mar- spokesperson for Gazprom said. Committee to continue creating ing plants in new areas, such as ket, is currently working on a pro- infrastructure for producing and the Black Sea and in Russia’s Far ject for an LNG bunkering vessel. Portovaya development marketing LNG as a bunker fuel. East as well as overseas territories Today, only four vessels of this continues used by Russian vessels. kind exist worldwide, along with Development will include contin- LNG bunker vessel Alongside onshore construc- eleven small-scale gas carriers ued development at Gazprom’s designs tion, the group also plans to con- some of which are fitted out for LNG production, storage and ship- In the longer term, Gazprom plans sider designs for an LNG bunkering LNG bunkering,” Gazprom said in ment complex near the Portovaya to explore the possibility of build- vessel to add flexible refuelling a statement. n Coral Methane completes first ship-to-ship operation LNG bunker vessel Coral Methane has completed its first ship-to-ship refuelling operation, in Tenerife in the Canary Islands. The vessel successfully docked and feeder vessel transporting with the AIDAnova, the world’s ethylene as well as LNG for Nor- first LNG-powered cruise ship, and way’s Gasnor, a subsidiary of Shell, completed bunkering operations however growing demand for LNG at Santa Cruz de Tenerife on the has seen the vessel retrofitted as 16th January. a pure LNG vessel. “The success of this project is “We believe LNG is today’s due to an excellent cooperation most sustainable marine fuel. The with all parties involved, from the delivery of Coral Methane as an engineering phase up to and includ- LNG bunker vessel, in partnership ing our first LNG bunkering opera- with Shell, underlines our dedica- Coral Methane bunkering Aidanova tion,” Klaas Kerssemakers, COO tion to LNG and marks the next cylindrical cargo tanks, a dual fuel transfers including ship to shore of Anthony Veder, commented. step in our contribution to a sus- diesel-electric propulsion system and vice versa. tainable supply chain,” Kersse- and associated cargo-handling “The vessel forms a unique ex- ‘Most sustainable’ makers added. equipment. ample and benchmark for various marine fuel With an overall length of 117.8 small scale LNG opportunities that The Coral Methane is part of the 7,500 m3 capacity meters the Coral Methane and is exist around the globe and are fleet of tanker operator Anthony Featuring capacity for 7,500 cubic equipped with both high and low moving towards feasible business Veder and was originally devel- meters of fuel, the vessel incorpo- manifolds as well as flexible hoses cases with our help,” a spokesper- oped as a multi-purpose bunker rates a modern gas plant, two to allow for various types of LNG son for Anthony Veder said. n Editor Subscriptions No part of this publication may be reproduced LNG Fuelling or stored in any form by any mechanical, 1st Floor, 30 Warner Street Malcolm Ramsay Elena Fuertes electronic, photocopying, recording or any London EC1R 5EX, +44 (0)20 7017 3413 Tel: +44 (0) 20 7253 2700 other means without the prior written consent [email protected] [email protected] of the publisher. Whilst the information and United Kingdom articles in LNG Shipping News are published in www.lngjournal.com Subscription included with LNG Journal good faith and every effort is made to check Tel: +44 (0)20 7017 3404 Ad sales enquiries accuracy, readers should verify facts and statements direct with official sources before Narges Jodeyri Production acting on them as the publisher can accept no Publisher +44 (0)207 017 3406 Vivian Chee responsibility in this respect. Any opinions Stuart Fryer [email protected] Tel: +44 (0) 20 8995 5540 expressed in this publication should not be [email protected] construed as those of the publisher.” 1st Quarter 2019 LNG Fuelling NEWS l 3 Coalition forecasts accelerating NEWS LNG fuel use in 2019 NUDGES Following a tipping point for LNG as a marine fuel last year, industry demand is expected to increase sharply in 2019, according to multi-sector coalition SEA\LNG. Woodside plans LNG truck loading facility In an outlook statement SEA\LNG expansion Chairman, Peter Keller, high- Australian oil and gas com- lighted growing demand for the pany Woodside Energy is re- fuel from shipping lines and an portedly planning to increase in LNG-powered vessels quadruple the size of its Pluto last year as setting the conditions LNG truck loading facility, fol- for an uptick in 2019. lowing the signing of its first “If 2018 was the tipping point customer this week. for LNG as a marine fuel, 2019 will Sheffield Resources signed be the year of acceleration… As an agreement for the equiva- the months progress, we expect lent of five terajoules of LNG to see an acceleration in decision per day for 15 years as part of making in favour of LNG due to the Thunderbird mineral sands SEA\LNG predicts growth in LNG refuelling this year three key factors: economic, envi- project.