INDEPENDENT INTELLIGENCE FOR THE GLOBAL BUNKER INDUSTRY

www.bunkerspot.com Volume 10 Number 4 August/September 2013 LEADING FROM THE FRONT: A creditor’s plan of action

Inside: • LNG Focus • Environmental Regulation • Port Profiles • Abatement Technology • News & Events Photo courtesy of Marit Hommedal Contents

NEWS Bunker Overview 4 News 6

HEAD OFFICE FEATURES Petrospot Limited · Petrospot House Somerville Court ·Trinity Way ·Adderbury LNG FOCUS Oxfordshire OX17 3SN · England GTT looks at the key operational and design challenges involved in  +44 1295 81 44 55 developing an LNG bunkering vessel 24  +44 1295 81 44 66 Norway has pioneered the use of LNG as a marine fuel – and Gasnor is at the  [email protected] very forefront of this initiative 28  www.bunkerspot.com Andrew Clifton of SIGTTO calls for a measured and informed response to MANAGING DIRECTOR / PUBLISHER the perceived challenges of using LNG as a marine fuel 31 Llewellyn Bankes-Hughes  +44 7768 57 44 30  [email protected] Logistical and regulatory hurdles remain to be overcome before shipping fully embraces LNG as a marine fuel. Nigel Draffin explains 33 DIRECTOR - PUBLISHING / EDITOR Lesley Bankes-Hughes ABATEMENT TECHNOLOGY  +44 7815 57 86 43  [email protected] The shipping industry has been slow to appreciate the benefits of exhaust gas cleaning technology. Robin Meech studies the issues 35 REPORTERS Rebecca Byers ENVIRONMENTAL ISSUES  [email protected] Tore Longva of DNV outlines the key issues that will drive next-generation Sam Lowery environmental legislation in the shipping sector 37  [email protected] COMMERCIAL ISSUES ADVERTISING SALES The increase in North American oil output is putting the energy supply Steve Simpson chain under severe pressure. Chris Thorpe discusses the logistical risk factors 40  +44 7800 75 52 78  [email protected] Mark Hawkes REGULATORY ISSUES  +44 7455 51 29 31  [email protected] John Denholm, President of BIMCO, explains the organisation's stance on eco initiatives 44 SUBSCRIPTIONS James Clack INSOLVENCY ISSUES  +44 7447 92 48 75  [email protected] When owners or charterers file for insolvency, bunker suppliers must act quickly to protect their own interests, says Steve Simms of Simms Showers 46 ADMINISTRATIVE ASSISTANT Bradley Fowler COMPANY FOCUS: PETROGAL  [email protected] Llewellyn Bankes-Hughes meets António Joaquim Manso, Marine Manager at Galp Energia’s Petrogal 48 MARKETING MANAGER Melody Agüero PORT FOCUS: PORT LOUIS  [email protected] Port Louis has ambitions to be a bunkering hub. Port Agency Services MAGAZINE LAYOUT & PRODUCTION (Mauritius) outlines the port’s vision for the future 51 Cheryl Marshall PORT FOCUS: ABERDEEN  [email protected] Alison Stodolnic of the Geos Group explains the procedures and challenges DIRECTOR - EVENTS in ensuring 24/7 bunkering operations at Aberdeen Harbour 55 Luci Llewellyn-Jones  +44 7775 92 42 24  [email protected] FUEL CELL TECHNOLOGY Hydrogen fuel cell technology may become a real alternative to cold ironing. EVENTS COORDINATORS Mike Janes discusses a pioneering project undertaken by Sandia National Labs 58 Hannah Whitty  [email protected] FUEL QUALITY Esther Ramos Michael Green of Intertek examines the rise in the incidence of ‘off-spec’ low  [email protected] sulphur fuels 61 Vicki Bye NETWORKING  [email protected] On the move... 64 EVENTS SALES Osei Mitchell EVENTS  +44 7789 20 20 10  [email protected] Events and training diary 66 Elena Melis Bunkerspot is an integrated news and intelligence service for the international bunker industry. The  +44 7975 89 52 03 [email protected] bi-monthly magazine and 24/7 electronic news service, www.bunkerspot.com, both provide highly- Sally Unwin specific information on all aspects of the marine fuels industry. Bunkerspot Magazine (published in  [email protected] February, April, June, August, October and December) annual subscription rate, including unlimited access to the website www.bunkerspot.com, is UK£250/€280/US$400. ISSN 1741-6981. Copyright Petrospot Limited © 2013. All rights reserved. Cristel Agüero Published by Petrospot Limited, a dynamic independent publishing, training and events organisation, focused on providing information resources for the  [email protected] transportation, energy and maritime industries. Disclaimer: Bunkerspot is an editorially independent magazine and electronic news information service. The information contained in the magazine and website is presented in good faith. Opinions expressed are not necessarily those of Petrospot Limited, ACCOUNTS which does not guarantee the accuracy of the information contained in Bunkerspot. Nor does Petrospot accept responsibility for errors or omissions Helen Wilkins or their consequences. No part of Bunkerspot may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photographic, recorded or otherwise, without the prior written permission of the publisher. Visit www.petrospot.com  [email protected] bunkerspot August/September 2013 www.bunkerspot.com 3 Bunker Overview

12 month rolling price charts

800 380 CST Fuel Oil Houston 380

Singapore 380 800 Houston 380 700 Fujairah 380 Singapore 380 Rotterdam 380 700 Fujairah 380 600 Rotterdam 380 PRICE $/tonne 600

500 ASONDJFMAMJJ

500 ASONDJFMAMJJ

Marine Diesel Oil

1100 Houston MDO

Singapore MDO 1100 Houston MDO 1000 Fujairah MDO Singapore MDO Rotterdam MDO 1000 Fujairah MDO PRICE $/tonne 900 Rotterdam MDO

900

800 ASONDJFMAMJJ

800 The ‘oldASONDJFMAMJJ order’ changes for global shipping News pages are notoriously difficult to fill in the outside world. and operators over reports that random August. In a desperate bid to populate column Ahead of his swearing-in in early August, inspections have been authorised onboard inches in this media ‘silly season’, journalists the US House of Representatives gave vessels transiting the Suez Canal. traditionally revisit old stories for a fresh angle no sign that any rapprochement might Turning to the Panama Canal, a steady or minor market movements are inflated into be on the cards. In move which highlights stream of announcements continue to testify trends of global significance. the increasingly hardline US stance on to the ongoing progress on its expansion This summer, however, the picture is very Iran’s nuclear programme, the House gave programme. For bunker suppliers, however, different. While the economic soothsayers may overwhelming support to a bill that would the news that new Panamanian legislation be becoming a little less pessimistic in their further cut Iran’s oil exports by one million could severely curtail supply opportunities on utterances, there is a perceptible undercurrent barrels. Current US and European Union the Canal for foreign-owned companies was of change in the maritime sector; a sense (EU) sanctions have already reduced Iran’s oil less than welcome. There are indications that changing supply trends, environmental exports to around 2.2 million barrels per day. that the new law could be in contravention of drivers, and wider geo-political factors may be What is certain is that any pronouncements Panama’s free trade agreements with other about to change ‘the old order’ in shipping – on foreign policy the new Iranian President countries – and diplomatic representation has perhaps permanently. Unsettling news for the may make will have a significant impact on the shipping community, no doubt, but welcome global energy – and by implication – shipping already been made over this. This particular grist to the mill for hungry journalists. sectors. story looks set to run for some time. It is still too early to predict the changes The key maritime transit points – the Suez Environmental mandates continue to that Iran’s new President, Hassan Rowhani, and Panama Canals – have also preoccupied impact on the day-to-day business of shipping. may bring to bear on the world stage. In the newshounds in recent months. As the news In this issue of Bunkerspot, BIMCO’s President first days of his leadership the indications are pages of this issue of Bunkerspot show, John Denholm notes that the construction of that he may be more ‘progressive’ on domestic against the background of continued political ‘eco-ships’ ‘will surely delay the return to the policies, but we may have to wait some time volatility and social unrest in Egypt, there balanced market which the industry needs to before we can assess his intentions towards is growing concern amongst shipowners facilitate its recovery’.

4 www.bunkerspot.com August/September 2013 bunkerspot Bunker Overview

He sounds a warning note: ‘The effect June July August of this tonnage upon the natural “ageing and 380 IFO 03-07 10-14 17-21 24-28 01-05 08-12 15-19 22-26 29-02 replacement process” of the world fleet is still to be determined.’ Rotterdam d 583 589 595 574 584 602 604 606 707 As 2015 – the next environmental Gibraltar d 610 615 627 600 611 615 623 628 622 milestone – draws closer, the debate grows Piraeus d 607 611 625 594 603 613 632 632 627 louder over residual fuels and distillates. The Suez d 652 645 646 641 646 643 649 657 656 jury is still out on the availability, or otherwise, Fujairah d 609 615 622 604 595 596 599 603 598 of distillates and somebody is going to have Durban w n/a n/a n/a n/a n/a n/a n/a n/a n/a to answer the plethora of questions on this Tokyo d 651 656 658 647 638 639 638 636 635 before time runs out. Busan d 625 631 632 628 620 619 622 625 627 Michael Green of Intertek, writing on the Hong Kong d 612 612 619 600 599 608 609 614 611 incidence of ‘off spec’ low sulphur fuels, notes Singapore d 603 609 614 597 590 598 612 605 600 that when the 1% sulphur content requirement is left behind in 2015, ‘the prospect of an Los Angeles w 629 616 616 609 648 658 608 626 645 increased quality product [residual fuel] at a Houston w 579 583 587 569 582 589 592 588 589 lower cost, compared to distillate fuels, could New York w 591 591 594 583 588 595 606 603 609 be the springboard many owners need to Panama w 598 595 602 580 591 609 611 611 609 consider the application of a scrubber unit’. Santos d 628 630 630 630 622 632 631 626 627 Robin Meech of Marine Energy and Buenos Aires d 643 644 640 623 622 611 607 608 607 Consulting Ltd shares the same train of thought. In a feature which debunks some June July August of the financial and operational myths which 180 IFO 03-07 10-14 17-21 24-28 01-05 08-12 15-19 22-26 29-02 surround exhaust gas cleaning technology, he Rotterdam d 612 617 624 605 613 629 625 631 628 notes that: ‘The key question is how quickly Gibraltar d 649 650 660 633 641 644 653 660 657 can the capital and operating costs be offset Piraeus d 636 640 656 624 634 644 663 663 657 by the decreased bunker costs achieved by being allowed to consumer cheaper fuel oil Suez d 681 676 674 664 669 663 672 674 675 rather than costly distillates while operating in Fujairah d 683 684 688 675 665 666 671 671 669 an Emission Control Area (ECA).’ Durban w 666 660 663 539 643 633 633 626 619 As always, the use of liquefied natural gas Tokyo d 658 669 673 654 645 645 648 647 647 (LNG) as a marine fuel is comprehensively Busan d 646 652 652 652 643 642 645 644 650 covered in the pages of Bunkerspot. Gasnor Hong Kong d 621 623 638 622 624 621 621 627 622 reviews its role as a major player in the LNG Singapore d 611 611 629 618 606 626 615 618 611 supply chain, while Andrew Clifton of SIGTTO says that the bunker fuel sector should take Los Angeles w 658 648 648 643 676 683 642 662 680 care to follow best practice in the adoption of Houston w 656 646 640 624 640 669 669 670 676 LNG: ‘It is imperative that the shipping industry New York w 632 627 629 615 617 621 628 626 634 embraces the use of LNG as a fuel in the same Panama w 669 668 673 655 664 670 676 676 665 way that the shipping industry has.’ Santos d 650 652 652 652 642 654 653 648 649 GTT also reveals details of its new LNG Buenos Aires d 731 731 732 732 707 712 700 698 697 bunker barge – so often seen as the missing link in the supply chain. June July August The sage of the bunker industry, Nigel MDO 03-07 10-14 17-21 24-28 01-05 08-12 15-19 22-26 29-02 Draffin of LQM Petroleum Services, reflects Rotterdam d 850 859 882 863 875 909 910 913 903 on the post-World War II switch from coal to Gibraltar d 917 926 945 928 945 957 964 964 957 oil as a bunker fuel, and suggests that, in the Piraeus d 895 901 928 905 913 941 950 954 945 case of LNG as a bunker fuel, there is still nothing new under the sun. Suez d 1067 1065 1066 1063 1071 1067 1067 1068 1071 Finally, the ripple effect of the bankruptcies Fujairah d 1000 996 994 1003 996 999 999 1008 1004 of STX Pan Ocean and TMT continues to Durban w 1087 1090 1091 1075 1069 1074 1076 1078 1073 impact on their creditors – including bunker Tokyo d 916 926 933 926 928 883 956 957 958 suppliers. Both companies filed for protection Busan d 909 905 910 914 914 929 936 947 945 in US courts, and Steve Simms of Simms Hong Kong d 884 886 908 893 901 930 935 938 933 Showers, in a no-nonsense, incisive feature, Singapore d 879 883 903 886 891 916 922 930 918 urges every bunker supplier to stay ahead of the pack if it is to win on the creditors’ Los Angeles w 1001 998 997 989 991 1001 1014 1016 1018 battlefield. Houston w 947 964 964 954 959 987 997 1001 1000 New York w 954 956 955 943 946 960 967 971 976

Panama w 994 1002 1005 999 1004 1014 1016 1019 1015 Santos d 995 995 995 995 1008 995 995 995 995 Buenos Aires d 1167 1172 1169 1162 1157 1161 1173 1157 1156

KEY: d – delivered • w – ex-wharf • n/a – not available • mdo – marine diesel oil

Bunkerspot prices are compiled from the reports of the four brokers whose market reports have consistently proved GLANDER the most reliable and accurate: Cockett Marine Oil Limited, LQM, Glander International Inc., and KPI Bridge Oil. Bunkerspot welcomes market reports from other sources for inclusion on its website www.bunkerspot.com bunkerspot August/September 2013 www.bunkerspot.com 5 LNG Focus The missing link

GTT and Marine he liquefied natural gas (LNG) bunker ship or barge is often ‘From a thermodynamic Assistance are Tpresented as the ‘missing link’ point of view, the small in the emerging LNG bunkering supply developing an LNG chain – assuming, that is, that the scale LNG bunkering other links already exist or do not raise bunkering vessel. This particular challenges. supply chain does not The concept of an LNG bunker vessel differ from the main stream article looks at the key raises a number of key design and operational questions and constraints. An operational supply chain’ operational and design profile and a gas consumption profile must challenges involved be created, and rule requirements and bunkering procedures must be adhered to on pressurised containment systems (Type (see the recent study on standards and rules C). for bunkering gas fuelled ships undertaken by Germanischer Lloyd on behalf of the Type C or membrane LNG containment European Maritime Safety Association systems – a comparison (EMSA)which was published in February. The main advantages of the Type C Other factors must also be considered: containment system are: the interface with the loading terminal/ ● BOG management – this handles a rise in infrastructure; issues relating to low pressure pressure and pressure build-up containment (vapour return, boil off gas ● It is a well-known technology, available (BOG) generation, gas containment units); ‘off the shelf’, and it can be sourced from the transfer system; and the cargo handling several contractors worldwide ● It is an easy system for shipyards to handle. system. Many shipyards which handle liquefied Some of these issues and constraints petroleum gas (LPG) or ethylene carriers are still remain to be resolved. However, this already familiar with the technology. There is feature will focus on the new design of also no requirement for a licence to use the an LNG bunker vessel which has been system developed jointly by French ship designer ● The system costs are well known. Marine Assistance and membrane LNG However, these advantages may not containment system specialist GTT. always offset the main drawbacks. One The interest in the design of an LNG perceived advantage is the capability to bunker vessel has grown rapidly in recent handle a pressure build-up in the tank. years and a number of design options have However, while this is a clear advantage been proposed. The vast majority are based in terms of the vessel itself, it is also a key TypeType C vs C Membranevs Membrane Bunker Bunker ship ship 40004000 m3 LNG; m3 LNG;1000 1000 m3 m3 MDOMDO Type CType design C design MembraneMembrane design design LOA LOA 106 m 106 m 90 m 90 m With over 50 years of experience, GTT designs LBP LBP 99,8 m 99,8 m 86,8 m 86,8 m membrane containment systems for the maritime Breadth Breadth 16,5 m 16,5 m 15,7 m 15,7 m transportation and storage of LNG. Over 70% of Depth Depth 9,0 m 9,0 m 9,4 m 9,4 m the world LNG carrier fleet is currently equipped Design DraughtDesign Draught 5,1 m 5,1 m 4,8 m 4,8 m with GTT membrane technologies. The company Cb Cb 0,75 0,75 0,80 0,80 offers solutions for the whole LNG supply chain: Lightship weight 3520 t 2544 t the use of LNG as a marine fuel, distribution by Lightship weight 3520 t 2544 t feeder or barge, land/sea storage, and offshore Design DWTDesign DWT 2900 dwt2900 dwt 2920 dwt2920 dwt platforms. V LNG cargoV LNG tanks cargo (100%) tanks (100%) 4080 m34080 m3 4080 m34080 m3 Max fillingMax level filling in LNGlevel tank in LNG tank 98% 98% 98% 98% Contact: V MDO cargoV MDO tanks cargo (100%) tanks (100%) 1000 m31000 m3 1000 m31000 m3 Tel: +33 1 30 234 789 Service speed (90% MCR, 15% sea margin) 12,5 knots 12,5 knots Email: [email protected] Service speed (90% MCR, 15% sea margin) 12,5 knots 12,5 knots Web: www.gtt.fr MCR (propulsionMCR (propulsion only) only) 2740 kW2740 kW 2420 kW2420 kW

24 www.bunkerspot.com August/September 2013 bunkerspot LNG Focus

drawback for the client. From a thermodynamic point of view, the small scale LNG bunkering supply chain does not differ from the main stream supply chain and the same basic principles apply. In particular, the LNG temperature at delivery to the end user is key, as is its composition which determines its energy content. As an end user, whatever the containment system on the ship, it must be possible to permanently control/regulate the pressure build-up inside the LNG tank to better manage the BOG and gas supply to consumers. In order to achieve this, the initial pressure in the tank after refilling should be as low as possible. This will minimise boil off generation and allow a margin before being obliged to use the gas. The end user needs this margin provided by the coldest possible LNG at delivery. This desired very low temperature at delivery to the end user means that the whole bunkering supply chain must maintain LNG at minimum temperature (as close as possible to the boiling point at atmospheric pressure: -163°C). The use of low pressure containment systems along the supply chain (including the bunkering ship/barge) allows, by definition, the LNG temperatures to be kept low. However, this comes with other constraints, such as the necessity to be able to handle extra BOG generated during transfer operations. This is particularly true when transferring to an LNG-fuelled ship, itself using a low pressure containment system such as an LNG fuel tank (Type A, B or membrane). Other drawbacks when using the Type C those of the membrane-based design. The it be operated with or without vapour containment system on the bunker ship are advantages of a membrane-based design can return? What will be the minimum and the mentioned in the comparison table (p.24). be clearly seen. It has a 15% shorter LOA maximum quantity delivered? What is the A fair comparison between a Type which improves manoeuvrability in port or sailing distance from loading terminal to C design of a bunker ship with the same restricted navigation areas and a lightship delivery port(s), etc.? cargo capacity (4,000 cubic metres (m3) of weight nearly 30% lighter,which has The detailed operational profile will LNG in two identical tanks and 1,000 m3 consequences in terms of ship price and fuel help in estimating the total BOG generated marine diesel oil (MDO) and a membrane consumption. (natural BOG + extra BOG from transfer containment system has been prepared. operations) along normal operations versus From this table it can be seen that the BOG management the total gas consumption (propulsion + overall dimensions and lightship weight of The pressure setting of the pressure relief electric generation), and hence the selection the Type C ship are substantially larger than valves of the membrane containment system of the optimised solution for the BOG is 700 mbarg, which is the maximum allowed management and the propulsion system by the IGC code. This value provides some (electric versus mechanical). ‘The overall dimensions flexibility with regards to a slight pressure Depending on the intended operational and lightship weight rise during various operations but is not profile and the maximum recurrent amount sufficient in many cases to cope with extra of BOG to be handled, the following of the Type C ship are BOG generated during cargo transfer with solutions could be contemplated: substantially larger than vapour return from the bunkered ship. ● In the case of a very low total BOG level, This is one of the reasons why it is the use of the allowable pressure increase those of the membrane- of utmost importance to know at a very inside the bunker ship’s LNG tanks could based design’ early stage of the design process what the suffice (up to the pressure setting of the operational profile of the ship will be. Will control valve sending the gas flow to the gas bunkerspot August/September 2013 www.bunkerspot.com 25 LNG Focus ENVIRONMENTAL FRIENDLY BUNKERING

Typical: Vanadium 20 ppm Sulfur 0.7%

combustion unit (GCU), such pressure could operation exceeding the capacity of the vapour return line. The system is fitted with be set at 500 or 600 mbarg) normal BOG management device, or in case a custody transfer system (CTS) or fiscal ● In the case of a recurrent but temporary such a device might fail. metering. The transfer system is designed to high level of extra BOG, the solution consists be used as a loading device at the terminal of storing temporarily the energy of this Sloshing and partial filling and delivery system to clients. Currently, extra BOG and restituting it later when it is Because of the anticipated operational several technologies are being proposed needed. Energy storage could be achieved by: profile, this type of ship would mainly be but none are really certified yet for the - Compression of BOG at high used for coastal trade and operations within purpose. This work is in progress by several pressure (250 bar) after heating port areas, river estuaries and other sheltered designers and manufacturers and it is likely and storage (CNG) until it can be areas. In the case of the design presented that appropriate transfer systems will soon be released and sent to consumers here, the operational profile includes certified and marketed. - Extra electric generation stored in regular coastal sailing between the loading batteries and/or super capacitors in terminal and the delivery areas. For this Next steps case of DC electric propulsion, for reason, the tanks are fitted with upper and The vessel design dossier will be submitted example. lower chamfers to accommodate sloshing to a Class Society in order to obtain an ● In case of recurrent and nearly permanent loads in any partial filling conditions. It Approval In Principle (AIP) around the end extra BOG, a small size re-liquefaction is anticipated that the membrane system of 2013 or early 2014. unit should be installed. Currently, several proposed for this design (Mark 3 Flex) This application of membrane designers/manufacturers are working on will be able, at any intermediate filling technology is promising and should prove to downscaling existing units. Since many level (thanks to optimised reinforcement), be very competitive. Membrane technology applications can be envisaged for such small to cope with any sloshing load induced brings clear advantages leading to minimised units, it is expected that the market will drive by the ship motions under the sea states dimensions and lightship weight. Being a low down the prices to an affordable level. encountered on these coastal sea routes. pressure containment system, it ensures the By handling the extra BOG, and hence The liquid motions test campaign will take low temperature of LNG from terminal to maintaining low pressure inside the tanks, place this autumn in GTT’s laboratory delivery point which is of utmost importance these solutions ensure the cargo is maintained to better assess the sloshing pattern and for the end user. at very low temperature in an optimised way confirm the capability of the ship to sail on With 50 years of experience in (minimising the waste of energy). the intended coastal route in partial filling membrane containment system technology The mini GCU is another technological conditions. and a substantial track record in LNG brick being developed for such a small LNG transportation (two-thirds of LNG carriers ship. It is derived from existing systems used Transfer system sailing today are using membrane technology), on large LNG carriers. This small GCU As the bunker ship should be able to deliver GTT is very confident about the future is there as a safety device (an IGC code LNG to gas-fuelled ships using any type development of the LNG infrastructure for requirement) to burn an excess amount of of LNG containment system, including bunkering as well as the LNG fuelled ship gas generated by any abnormal event or low pressure, the transfer system includes a and in the role it can play in this market.

bunkerspot August/September 2013 www.bunkerspot.com 27

0706 bunkerspot v6i6.indd 63 02/12/2009 16:06 LNG Focus Joined-up thinking

Norway has pioneered asnor has pioneered the market for natural gas in Norway. The ‘The acquisition of the use of LNG as a Gcompany started up supplying Gasnor is regarded as natural gas to Norwegian industry marine fuel – and Gasnor through a local pipeline network in an important step for the Haugesund area on the western is at the very forefront of coast of Norway. In this region Gasnor Shell towards creating a currently delivers natural gas to a range downstream LNG sales this initiative of customers, from industry to housing and road transport. business’ The company was quick to realise the potential in using natural gas in a liquefied state. Liquefaction permits a more LNG bunkering operations are carried out in appropriate form of storage and also enables Norway. The Staten Island Ferry Company distribution over greater distances with announced earlier this year that it intends to difficult topography. Gasnor opened its first retrofit one of its vessels to run on LNG. liquefied natural gas (LNG) production Gasnor is involved along the entire LNG plant in April 2003, and has since built two value chain, from source to customer. The additional production facilities. The largest LNG is distributed by 18 tank trucks and two production site is at Kollsnes (just north of tankers to customers’ local storage facilities. Bergen). The decision to transport by truck or ship is Until the summer of 2012, Shell was a usually dependent on quantity purchased and minor stakeholder in Gasnor but the company distance to be covered. is now a wholly owned subsidiary of Shell. The combination of ships and trucks gives The acquisition of Gasnor is regarded as an both flexibility and security of supply. The important step for Shell towards creating a tanker ships are powered by LNG, and the downstream LNG sales business. LNG as first Norwegian tank truck (manufactured by a transport fuel is seen as an exciting new Volvo) to run on LNG has recently entered addition to Shell’s innovation-led product service. One of the reasons Gasnor decided mix. to be a player with involvement along the Colin Abraham, Shell’s Vice President for entire value chain is that such continuity Downstream LNG, explains: ‘The benefits and breadth of experience makes it easier of natural gas in meeting our future energy for a customer to make the transition from needs are well-documented. Shell believes a familiar energy source to the lesser known the LNG in transport sector will develop LNG. Sourcing, transportation, storage and into a sizeable market and given its industry know how about the safe handling of LNG leading expertise across the LNG value chain, should not be seen as obstacles by a customer the extension into this market is a good fit – Gasnor can provide the expertise across all for Shell. these areas. ‘The Gasnor acquisition provides Shell The first ship to be powered by LNG with invaluable customer and market insight in Norway was a coastal car/passenger ferry, built up over a number of years. This will help Glutra which entered operation in 2000. us to quickly develop and meet customer Based on the operational experience with requirements for LNG as a transport fuel.’ this ferry, the shipowner Eidesvik Offshore Gasnor currently delivers LNG to a decided to build a Platform Supply Vessel growing fleet of natural gas-powered ships (PSV) operating on LNG. In 2003 Viking and key sectors of Norwegian industry. In the Energy became the first PSV to enter area of LNG as a fuel, Norway is the world service with engines running on LNG (See leader, and there is great international interest Bunkerspot, June 2004). The experience with in the concept that Gasnor has developed. this ship was very positive, and the company In the past few months, delegations from now has five LNG-fuelled PSVs. Its LNG China, South Korea, Japan, Indonesia and systems have proven reliability and their the United States have visited Gasnor and engines stay clean. its LNG facilities to examine how small- The next leap forward was the scale LNG operations are carried out. Even introduction of five coastal ferries serving the famous New York Fire Department, two of the busiest ferry connections in Contact: along with representatives from the US Norway. These ferries came into service in Gasnor Department of Transportation and the early 2007, and they have been followed by Tel: +47 815 20 080 Staten Island Ferry Company, have 15 new ferries operating between a number Web: www.gasnor.no visited the company’s LNG bunkering facility of destinations. There are currently a total and the LNG-fuelled ferries to study how of 21 ferries operating on LNG in Norway.

28 www.bunkerspot.com August/September 2013 bunkerspot LNG Focus

The market for LNG as a fuel is growing and Norwegian government has established bunkering is a reality more than a concept. several other types of ships have also switched a NOx fund. Participation in this fund is LNG bunkering can take place from to operating on LNG. The Norwegian voluntary, but if a company signs up to the terminals, bunkering vessels or trucks. Coast Guard, for example, has three new fund, it can benefit from funding to help Depending on how the ships are being ships operating on LNG, and a number reduce emissions. bunkered, there will be collaboration of LNG-fuelled freight carriers have also The funding from the NOx fund can be between a Gasnor representative and the recently been put into operation. By July up to 80% of the total cost of NOx reduction crew onboard the ship – or the bunkering 2013, there were nearly 40 various types of initiatives. However, the use of LNG as a can be carried out by the crew alone. The ships operating on LNG in Norway. marine fuel will not only help to lower the bunkering procedures are designed with New ships are also under construction emissions of NOx, it will also help to achieve simplicity and safety in mind and Gasnor has designed to be powered by LNG and, in the carried out more than 60,000 transfers of coming years, more LNG-fuelled vessels, LNG without incidents. The involvement of such as tugs, PSVs, cruise ferries, freight Shell also brings the additional assurance of carriers and tankers, will operate along the ‘Delegations from around safety and rigour gained through decades of Norwegian coastline. the world have visited experience in operational safety. There are a number of reasons why On 24 January 2013, the European Norway became the first mover and a world Gasnor and its LNG Commission (EC) launched a proposal for leader in the use of LNG as a fuel on other facilities to examine a directive relating to Clean Power for Transport, ships than LNG carriers. in which LNG will play an important role. Gasnor was at the forefront of this how small-scale LNG The EC’s proposal is to establish LNG initiative, offering LNG on a small scale, operations are carried out’ bunkering terminals in 139 major harbours and therefore make availability feasible for in Europe and filling stations for LNG smaller volumes in a number of locations. trucks along the Trans-European Transport Another reason is that Norway is committed Network (TEN-T) corridors in the European to lowering the emissions of nitrogen compliance with the stringent demands Union. This underlines the role that LNG is oxide (NOx) – and the transport sector is for reducing sulphur emissions in Sulphur expected to play in diversifying and making responsible for a substantial quantity of these Emission Control Areas (SECA), and even the transport sector more environmentally emissions. contribute to lower emissions of greenhouse friendly. To achieve the goal of lower emissions, gases (GHG). LNG as a marine fuel is also The directive, which is expected to come the Norwegian government has decided a cost competitive fuel compared with the in force by the end of this year, will be a to support the operation of LNG-powered alternative compliance options. Many ship strong driver to accelerate the use of LNG as vessels. In cooperation with industry, the owners/stakeholders have realised that LNG a fuel in ships. bunkerspot August/September 2013 www.bunkerspot.com 29 LNG Focus Best practice

Andrew Clifton of he use of liquefied natural gas (LNG) as bunkers for ‘SIGTTO believes that LNG SIGTTO calls for a Tconventional shipping has become a hot topic. There have been as a marine fuel should measured and informed many column inches written advocating be carried, in principle, its undoubted environmental and response to the perceived economic benefits. Many conferences using the same designs, challenges of using LNG on this topic are being organised and procedures, training, expert consultants are springing out of control measures and best as a marine fuel the woodwork offering to assist various stakeholders in feasibility studies. practices as have been As the industry body for liquefied gas shipping, the Society of International used in the half century Gas Tanker and Terminal Operators of successful LNG vessel (SIGTTO) welcomes the increased use of operation’ LNG as bunkers. This will result in more volumes being sold and shipped on LNG vessels, due to the increased demand, and this cryogenic fluid will be introduced onto increased activity is very good news for our non-LNG carriers, and this requires unique membership. materials, designs, training, control measures Current worldwide bunker consumption and procedures. LNG possesses the same is the energy equivalent of approximately 70% properties and hazards whether it is stored of the current LNG export market. Clearly, onboard a vessel for use as fuel or is being the impact on the global LNG market will be carried as cargo. considerable even if only a small percentage At conferences, we have heard some of conventional vessels switch to using LNG very worrying statements about how LNG as fuel. as a fuel should be handled. ‘Inconvenient SIGTTO has no doubt that LNG can standards and codes’ are being debated away be safely used as ship’s bunkers. There is, by people and organisations without the however, one caveat to that statement – but knowledge and experience of the properties more on that later. and hazards of LNG simply because they do First of all, I wish to mention the figure not fit intended business models. We have 40. This is the estimated maximum amount, even heard LNG being referred to as ‘it’s only 3 in cubic metres (m ), that we have spilt in the cold diesel’. LNG shipping industry in almost 50 years The use of Type C pressure tanks of operation, with close to 75,000 cargoes introduces the risk of Boiling Liquid safely delivered. During this time there has Expanding Vapour Explosion (BLEVE) in been no loss of cargo tank containment and LNG tanks at sea for the first time. However, no onboard fatalities directly attributable on the LNG vessels of the SIGTTO to the cargo. A very impressive – in fact, membership, LNG is carried at atmospheric an unprecedented – safety record for the pressure in non-pressure tanks. When used as carriage of liquid hydrocarbons at sea in bulk. a fuel, LNG will also be transported deeper A simple internet search will throw up into port areas and further up river than some rather sobering figures regarding the where LNG vessels normally trade – although amount of fuel oil and diesel oil bunkers the quantities of LNG carried will generally spilt during the last decade or longer. I do be smaller. LNG carriers usually load and not wish to mention the quantities involved; discharge at terminals which are located well however, with all due respect to the bunker away from residential, port centres and built industry, these figures are considerably in up areas. excess of 40 m3. This brings me to the caveat I referred It is quite clear that the use of LNG to earlier. SIGTTO believes that LNG as a as bunkers needs to be conducted, across marine fuel should be carried, in principle, Contact: all areas of the supply chain, with a totally using the same designs, procedures, training, Andrew Clifton different approach and philosophy to that control measures and best practices as have General Manager, SIGTTO of traditional bunkers. A low flash point been used in the half century of successful Acting General Manager, SGMF Tel: +44 207 7628 1124 Email: [email protected] Web: www.sigtto.org ‘The SGMF will issue recommendations and guidelines regarding all www.socgmf.org aspects of the use of LNG as bunkers’

bunkerspot August/September 2013 www.bunkerspot.com 31 LNG Focus

LNG vessel operation. marine fuel, and will focus solely on safety, The International Gas Fuelled Ships Code recommendations and best practices with no ‘LNG possesses the same (IGF Code) is still under discussion at the commercial or regulatory remit. International Maritime Organization The SGMF will issue recommendations properties and hazards (IMO). However, it is still some years away and guidelines regarding all aspects of the whether it is stored from coming into force – the earliest possible use of LNG as bunkers, including design, onboard a vessel for use official introduction date is January 2017 and operations, training and competency we believe that date may slip. Therefore, in the standards, maintenance, acceptable risks and as fuel or is being carried absence of current international regulations associated control measures, and emergency as cargo’ (an almost unique situation for an activity salvage of a vessel fitted with LNG fuel which is already taking place), we wish to tanks. (Take the Costa Concordia incident as entry within their jurisdictions, for LNG direct the industry to the basic principles of an example – how would the salvage team fuelled conventional vessels. the IGC code and to the best practices used safely remove the LNG bunkers in such a A final point to consider concerns the by the LNG shipping industry. situation?) nuclear-powered cargo ship, Savannah, which We also call for the sector to support We are aware of some minor leakages probably has the best emissions record of all and join the new industry body, the Society to date on the handful of LNG bunkered time amongst commercial vessels, although it for Gas as a Marine Fuel (SGMF), which conventional vessels in operation. A major never fully gained the confidence of port and SIGTTO has formed to oversee the use of incident on an LNG fuelled vessel, especially flag States. To avoid vessels becoming modern LNG as a marine fuel. This organisation one involving passengers, would impact day successors to the Savannah, it is imperative should be open for membership in September the LNG shipping industry but would also that the shipping industry embraces the use 2013 and will be inclusive, open to all with have the potential for port and flag States to of LNG as a fuel in the same manner that the a risk in the supply chain of LNG as a impose severe restrictions, or even prohibit LNG shipping industry has.

32 www.bunkerspot.com August/September 2013 bunkerspot LNG Focus History lesson

Logistical and regulatory n 1964, two 20,000 displacement tonne ships put to sea burning methane as ‘There is no point in hurdles remain to be Itheir principal propulsion fuel. By investing in a ship for 1970, there were seven of these ships and overcome before shipping by 1990, about 50. All of these vessels worldwide trade that can were steamships (with the exception of fully embraces LNG the Venator) and they all carried liquefied only lift fuel in six ports natural gas (LNG) as their cargo. worldwide’ as a marine fuel. Nigel There are now over 350 of these ships and nearly one third of them are motor ships. Draffin of LQM Petroleum The motor ships’ engines demonstrated that and Trading company had oilfields, Services offers some methane was a viable fuel and the technology refineries, tankers and more residual fuel than of the LNG fleet demonstrated that the it could sell), the foresight of Admiral Sir pertinent observations equipment, designs and systems for handling John ‘Jackie’ Fisher of the Royal Navy (who LNG and methane vapour were mature, safe realised his new Dreadnaught battleships and robust. could sail further, carry bigger guns and use In 2002, there were two non-LNG fewer crew) and the political skills of Winston tankers burning methane as a fuel; by 2012 Churchill (The First Sea Lord – who knew there were more than 25 and by 2015 there that the British navy needed the advantage will be about 50. There are many reasons that oil fuel would give them) to precipitate for this new direction, including economics, a move to oil. Between them, they persuaded politics and operational advantage. parliament to approve the funds to set up I have been keeping a close eye on these oil bunkering stations in British naval bases developments, partly from personal interest (I around the world to supply these new ships. first came into contact with LNG shipping At the same time that Britain was moving in the early 1970s), partly because I wanted in this direction, Germany, Japan, France and to keep my employers and colleagues up the United States were studying the same to speed on the developments, and partly problem and reaching the same conclusions. in my role as the contact point on LNG After the end of World War II, the for the International Bunker Industry combatant states were bust, they had no Association (IBIA). money (except for the United States) and It seems that every week there are new they did what all governments do in these announcements, new contracts and new circumstances – they sold off assets, and also trading possibilities for vessels using methane made the naval bunkering stations available as their main fuel source. to the commercial world, together with the It can be compared with the problem barges they had built to supply the ships in facing the shipping industry in the first 20 anchorages. years of the twentieth century. The sector Merchant shipping adopted the new fuel was being tempted to use oil instead of coal faster than adolescents with a new type of for fuel. The advantages then were clearly music player or mobile phone. The speed of understood – more space for cargo, a longer transition was so fast that within 20 years steaming range, a smaller crew and a huge 50% of the world fleet used oil fuel. improvement in the flexibility of handling We are back in the 1910s with LNG. this new fuel when compared to the physical People see the advantages but there are two hard labour of loading, shifting and stoking very large problems. One, just as before, coal (and disposing of the ash). is the logistics chain. There is no point in Nigel Draffin is senior broker and technical On the downside, there were logistical investing in a ship for worldwide trade that manager with LQM Petroleum Services. problems with oil – you could get coal can only lift fuel in six ports worldwide. everywhere, it could be carried onboard by The second issue is regulation. As soon He is a founder member of the International teams of cheap labour using wicker baskets as you want a ship to operate in general Bunker Industry Association and currently serves and, because the industry had been using it international trade it must comply with the as its Immediate Past Chairman. He teaches on for more than 70 years, it was understood by Safety of Life at Sea (SOLAS) convention and a number of Petrospot’s training courses and is the companies and their sea-going engineers. this has specific rules on ship construction, the author of An Introduction to LNG Bunkering, Oil, however, was difficult to find, had to ship safety and, specifically, the flash point of published by Petrospot in 2013, as well as a series the fuel which must be a minimum of 60oC. of other bunkering titles. be delivered by pipeline and needed a new supply chain to ensure availability. LNG tankers overcome this problem Contact: It took the vision of Weetman Pearson though a set of rules called the International Nigel Draffin (who built oil fired tankers to carry oil cargo Code for the Construction and Equipment of Tel: +44 1403 289 060 from his Mexican refineries to the US Gulf Ships Carrying Liquefied Gases in Bulk (IGC Email: [email protected] and North Europe), the business acumen of Code). This allows them to circumvent certain Marcus Samuels (whose Shell Transport SOLAS rules as long as they are built and bunkerspot August/September 2013 www.bunkerspot.com 33 LNG Focus

operated in accordance with this code. It is approval and contract commitments to very specific to LNG and liquefied petroleum ‘The shipowners don’t operate 3,200 twenty-foot equivalent unit gas (LPG) carriers and not practical for other (TEU) container ships between the United vessel types. want to order a gas-fuelled States and Puerto Rico, similar-sized ships So how do we undo the knot? Let’s take ship until they are sure between the US West Coast and Alaska and the US West Coast and Hawaii, fast ferries the regulation issue first. The International the fuel will be available Maritime Organization (IMO) is on the River Plate in South America, and in preparing a simpler but still comprehensive – which is exactly like the the Mediterranean. There are also projects for oil field support ships, naval patrol vessels and code for all ships called the International Gas situation pre-1914’ Fuelled Ships Code (the IGF Code). This is now roll-on roll-off (ro-ro) ships. Every one of these projects increases about 80% complete and should be finished the demand and increases the number of in 2014. After it is done, naval architects, Whilst ships cannot operate in ports with LNG supply facilities. China, shipowners and shipyards will be able to international trade with methane as a fuel, for example, is planning massive investment build gas-fuelled ships for international trade. they can trade exclusively in the waters in LNG-fuelled ships in coastal and inland Our second problem is the logistics. of their flag State, if that state permits it. waters. The medium term potential is for Bunker suppliers don’t want to invest in new They can operate between two States as 25% of ships to use gas fuel within 15 to equipment and new storage until they know long as both states permit it, and this is 20 years. Whilst this may not give us the the size of the demand. Shipowners don’t what is happening now. We are seeing this step change that came from the sell off of want to order a gas-fuelled ship until they extensively in Norwegian waters, in trade oil bunkering facilities in the 1920s, it will are sure the fuel will be available – exactly between Sweden and Finland, and in some lead to exponential growth of supply and, like the situation pre-1914. Now I am not inland waterways projects in Europe. once again, we will see a new and viable fuel proposing another war – there is another way! The most recent developments have source for shipping.

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34 www.bunkerspot.com August/September 2013 bunkerspot Abatement Technology Market forces

The shipping industry has total of 50 commercial exhaust gas cleaning systems (EGCS) are ‘The decision to invest in been slow to appreciate A currently installed or on order. scrubbing technology on This equates to a scrubbing capability the benefits of exhaust of nearly 1,000 MW of power and will a specific vessel will be allow shipowners post-2015 to consume gas cleaning technology. 0.5 million tonnes per year of low cost, very dependent on having Robin Meech believes higher sulphur fuel in Emission Control confidence in expected Areas (ECAs) – resulting in annual future trading patterns’ that this reticence is about savings of around $150 million. From 1 January 2015, when two similar to disappear ships tender for freight, the one with the EGCS will be 40% less costly to operate. obtained by a shipowner does not fall below The charterer will have to make his own $300 per tonne is not at all excessive. The risk decision. If he operates a ferry or cruise of not receiving the expected fuel incentive ship, he will be able to offer fares at a level can therefore be minimised. that could, potentially, put his rivals out of The decision to invest in scrubbing business, while the owner who has invested technology on a specific vessel will be very dependent on having confidence in expected in an EGCS will increase his margin. Such an future trading patterns. If they do change, example illustrates the huge incentive there is then the owner of a vessel with an EGCS to retrofit EGCS. There is no doubt that the will be able to obtain a premium second market will grow very rapidly – particularly hand value or charter rate from an operator for retrofits and, typically, for ships less than with high expectations of trading the vessel 10 years old. in an ECA for the requisite time. The key question is how quickly can the The capital costs of scrubbers are no capital and operating costs be offset by the longer unknown. Any of the established decreased bunker costs achieved by being scrubber manufacturers are more than willing allowed to consume cheaper fuel oil rather to provide a turn key price and schedule to than costly distillates while operating in an install EGCS either on a retrofit basis or on ECA? a newbuild. Costs will come down in the Over the next decade, until a global cap future as technical knowledge improves, is instigated, an operator will need to steam shipyards become more experienced in his vessel in an ECA for at least 100 days a fitting EGCS and some economies of scale year for at least five years to obtain an internal begin to take effect. However, in the near rate of return (IRR) over 12%. The viability term there is a case that the prices of EGCS must be assessed on a case by case basis but may rise as manufacturers start to enjoy the the 100 days provides an initial indication. benefits of their investment in technology as The decision to invest in scrubbing has been the number of installations grows rapidly over clouded by unknowns and these have caused the next three to four years. Obviously, for more than a few owners to delay making a some vessels it is unfeasible to fit an EGCS at decision. However, these uncertainties are an economic price, and the manufacturers do rapidly diminishing. make this clear. Residual prices can be expected to fall So what happens if the system does over the next decade as a result of decreased not meet the manufacturer’s performance demand, from shipping and inland users, guarantee? As with any contract between while consumption of distillates, particularly owner and shipyard, the problem can generally Robin Meech is managing director of Marine by inland transportation in developing be sorted to the owners’ satisfaction. None of and Energy Consulting Ltd, an independent regions and also by shipping, will force prices the emerging EGCS manufacturers want to consultancy focusing on all aspects of bunkering. up. Over the decade beginning in 2015 the have a long running dispute that reflects their He is co-author of Outlook for Marine Bunkers and differential between higher sulphur residual inability to provide satisfactory equipment. Fuel Oil Markets to 2030, a multi-client study to bunkers and 0.10% distillate will average The other cost unknowns are not be published this summer. He is also co-author $360 per tonne with annual averages scarcely significant. The additional power to run an with Chris Fisher of Bunkers: An Analysis of the dropping below $300 per tonne. There are EGCS is of the order of 1% of main engine Technical and Environmental Issues, published few price predictions that counter this and the usage; chemical purchases for closed loop by Petrospot. cost of hedging to ensure the net differential scrubbers are very unlikely to escalate nor are Contact: Robin Meech ‘The additional power to run an EGCS is of the order of 1% of main Tel: +44 845 838 8949 Email: [email protected] engine usage’

bunkerspot August/September 2013 www.bunkerspot.com 35 Abatement Technology

the costs of sludge disposal – this can often situation is becoming more manageable be accomplished in conjunction with normal ‘Any of the established through leasing arrangements being proposed slops discharges. None of the systems require by a number of companies, which obviously additional crew once professional training scrubber manufacturers reduces the burden of capital expenditure on has been provided, and training is usually are more than willing to the owner. Near universal acknowledgement of continuing high bunker prices and sulphur incorporated in the installation costs. provide a turnkey price and Will the regulations relating to scrubbing differentials, together with the availability of change so significantly as to make the 50 or schedule to install EGCS’ more sophisticated price risk management so EGCS currently in operation or on order systems, make these approaches more viable. and the design investment by the 10 or so In the near term, liquefied natural gas (LNG) as a marine fuel only offers a scrubber manufacturers redundant? This is With the uncertainties rapidly disappear- limited alternative solution. Most accept that very unlikely. In fact there has been criticism ing why have there only been commitments to 50 scrubber systems? Firstly, they will not retrofitting LNG is less viable than scrubbing of the regulators for not being more practical and over the next decade it will carry greater become viable for another 18 months and and precise in defining the future regulatory risks of price uncertainty, available bunker environment. An uptake of scrubbing will then only for younger vessels that can be locations and technological issues. Longer both diminish modal shift after 2015 and expected to operate in ECAs for over 100 term, particularly in the United States with its decrease the demand for distillates, thus days a year for five years after 2015. However, large ECA and an abundance of natural gas ensuring availability of supply after the this still represents a large number of potential leading to an eventual investment in coastal introduction of the global cap in 2020/2025. candidates, including ocean-going vessels liquefaction capacity, LNG may well be the Once the global cap has been enforced, trading trans-Atlantic. solution. However, this is unlikely to come scrubbing is an attractive option for all ship A lack of funds has been quoted as the about before 2020 and will generally be 13715_Bunkertypes. Spot Half Page_Layout 1 21/01/2013most 12:40 significant Page 1 inhibitor. However, this focused on newbuilds for the Jones Act fleet.

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36 www.bunkerspot.com August/September 2013 bunkerspot Environmental Issues Brave new world

Tore Longva of DNV he maritime industry will be faced with ever increasing requirements ‘It is likely that the realities outlines the key issues Tfor safety, security, environmental of climate change will and efficiency performance beyond that will drive next- 2020. Environmental and efficiency motivate the regulatory demands will remain a key focus for generation environmental technology development. Towards landscape to develop legislation in the shipping 2030, issues such as black carbon and more comprehensive and particulate matter, underwater noise stringent regulation of sector and bio-fouling may become part of mandatory requirements, in addition to GHG emissions beyond stricter greenhouse gas (GHG) emission regulations. The recycling convention 2020’ may be ratified and enter into force at the end of this decade, and over the next two decades we may also see a bring more knowledge to the table with number of local or regional maritime regard to PM/BC formation processes and environmental regulations, thus making abatement measures, such as filters, exhaust it increasingly complicated for many gas scrubbers and fuel types. This knowledge shipowners to ensure compliance. is needed before further regulatory initiatives There are a number of environmental are proposed. However, additional regulatory issues emerging on the agenda that are set actions are likely by 2030. to become important after 2020. Those Hull bio-fouling is recognised as a major expected to be most significant from a transport pathway for alien species, generally regulatory perspective are local sulphur oxide of the same significance as ballast water. The (SOx) requirements, black carbon, hull bio- IMO has developed voluntary guidelines fouling, ship recycling and GHGs. for the control and management of ships’ The global 0.50% sulphur cap will enter hull bio-fouling, which could develop into into force in 2020 or 2025, depending on an a regulation over the next 10-15 years. The International Maritime Organization guidelines state that a ship should implement (IMO) decision in 2018. Local and regional bio-fouling management practices, including initiatives can complicate the regulatory the use of anti-fouling systems and other landscape. The European Union (EU), for operational management practices, to reduce example, has decided to implement a 0.50% the development of bio-fouling. The EU sulphur limit in all EU waters from 2020, is also currently working on a legislative regardless of the results of the IMO review. instrument on invasive alien species as part Further, we may see new Emission Control of its 2020 Biodiversity Strategy, including Tore Longva has an MSc in Industrial Economics Areas (ECAs) in Asia outside the IMO ECA ship’s hull bio-fouling. from the Norwegian University of Science and system. China, for example, may develop Technology (2004). In 2012 he graduated from national regulations, driven by local air Hong Kong Convention the DNV technology and innovation programme pollution issues. Currently, Hong Kong is The Hong Kong Convention on Ship at the University of California, Berkeley. He contemplating regulating SOx emissions, but Recycling may enter into force within the has worked with DNV since 2006 on various it is not certain whether it will be an ECA next decade. However, the standards outlined research and business development projects, or a local regulation. These developments in the Convention are likely to be upheld and currently holds a position in the International may significantly complicate operator by a section of the industry even without Regulatory Affairs department. His focus areas considerations, in particular if adopted ratification. The EU has agreed on a recycling have been on innovation in maritime transport standards and enforcement differ from region regulation that is more or less in line with the value chains, and improving the environmental to region. Convention, which will enter into force in performance of shipping. He closely follows GHG Black carbon emission from shipping late 2013. issues in shipping as an advisor in the Norwegian is increasingly being recognised as a Greenhouse gas emissions from delegation to the Marine Environmental Protection significant contributor to global warming international shipping have increased steadily Committee in the IMO. and, in particular, a likely accelerator of over the past years with the general increase Arctic ice melting. Particulate matter/black in traffic. To date, these emissions have been Contact: carbon (PM/BC) is currently not regulated largely unregulated, both at the regional Tore Longva directly, other than through the limits on and international level. The Energy Efficiency Principal Consultant sulphur contents of marine fuels. The IMO Design Index (EEDI) has entered into force International Regulatory Affairs is working on developing a definition of and its last phase starts in 2025 with a Det Norske Veritas AS black carbon, measurement methods and 30% emission reduction requirement. The Email: [email protected] potentially appropriate control measures in development of new designs will determine Web: www.dnv.com the Arctic. if this is the lowest level or if a fourth phase On-going international studies aim to will be implemented. In the coming decade, bunkerspot August/September 2013 www.bunkerspot.com 37 Environmental Issues

we may see that the EEDI will become verification (MRV) scheme as a first step not a trivial task. Addressing SOx, nitrogen increasingly important from a commercial towards a GHG regulatory mechanism. If the oxide (NOx), CO2, ballast water and energy aspect in markets where charterers prefer EU Council and Parliament approves, such efficiency requirements more or less in the energy efficient ships. a scheme will enter into force in 2015, with same timeframe is complex, where care must However, technical and operational reporting starting in 2018. In the long-term, be taken so that the solution to one issue does measures have been recognised as insufficient the MRV regulation will likely form the basis not unduly constrain choices concerning the by regulators and stakeholders for reducing of a voluntary MBM that eventually becomes others. A fine balancing act will be required, GHG emissions. IMO is working on market- mandatory. in particular when increasing fuel prices, based measures (MBMs) as an additional If the IMO manages to develop a high investment costs, the potential lack of mechanism to regulate GHG emissions from regulation on carbon dioxide (CO ) financing and probably soft charter rates are 2 factored in. international shipping. The general intention emission reduction, a similar MRV scheme It is also likely that the realities of of MBMs is to put a price on GHG emissions, will be needed. The United States has made climate change will motivate the regulatory or enable trading mechanisms, thus providing a proposal to the IMO that when viewed landscape to develop more comprehensive economic incentives for reducing fuel in conjunction with the EU, MRV activity and stringent regulation of GHG emissions consumption. Agreement on MBMs remains may become the basis for real international beyond 2020. Even without international elusive, with the fundamental disagreement negotiations at the IMO. regulations, pressure from stakeholders between developed and developing states will increase to monitor and report GHG barring progress. Balancing act emissions. As a result, there will be a growing Slow progress on GHG emissions from Considering the issues above and their demand for increasingly ‘clean’ tonnage that shipping in the IMO has led the European interaction with each other, it is apparent not only complies cost-effectively with rules Commission (EC) to develop a legislative that navigating the regulatory landscape to and regulations, but also has a competitive proposal for a monitoring, reporting and decide on appropriate technical solutions is advantage towards older ships.

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38 www.bunkerspot.com August/September 2013 bunkerspot Commercial Issues Route to market

The increase in North lthough many books promise to reveal the secrets of success, ‘Refineries in the Pacific American oil output is Athere is one business school Northwest (Washington favourite entitled, The Goal: a process putting the energy supply of ongoing improvement, by Eliyahu M. State) are now known to Goldratt, which has particular relevance chain under severe to the oil supply chain. Written as a use rail cars filled with pressure. Chris Thorpe novel, this book takes the reader through oil from North Dakota to a fictional business story of a manager supplement their Alaskan discusses the logistical who must improve a factory riddled with operational constraints. At the risk supplies’ risk factors and supply of ruining the surprise for you, the goal turns out to be maximising profit. In outcomes in the context this case, the goal is achieved through (Washington State) are now known to use the optimisation of inventory, reduction rail cars filled with oil from North Dakota to of the sector’s unrelenting of bottlenecks and allocation of scarce supplement their Alaskan supplies. The same resources. can be said for East Coast Canadian and US drive for profit The supply chains of the oil and refined refineries once committed to importing oil products industries are an interesting from the east. comparison since each element can have an impact on market prices. Have modern Transportation risk supply chain practices decreased costs or Insofar as transportation risk goes, the reduced price volatility? Surprisingly, middlemen or transportation companies resulting improvements and efficiencies often assume the risk. Suppliers and refinery may have significant, yet unforeseen costs customers that may have robust safety which may have to be borne by unlikely policies may not have much influence bystanders. in the crude oil handling mid journey. Rushing to take profit from an arbitrage Debottlenecking opportunity could lead to cut corners and/ The increase of crude oil and gas supplies or the choice of less adequate transportation coming from North America have caused providers. The shift in logistical favourites one of many new challenges facing the may well have been too fast for the safety refining industry. Cheaper sources of supply watchdogs to catch up, resulting in undue need to be transported, safely, to refineries risk to unknowing bystanders. Indeed, just and load ports as ongoing freight. The short- protest by environmentalists and other safety term answer has been rail due to its low concerned politicians may have fallen upon cost and connection to major refineries, deaf ears as the number of rail cars moving storage terminals and ports. This has been a crude oil has increased five fold since 2009. boon for the North American rail industry, If pure profit is not enough to explain which had reached its nadir following the the change, it is more obviously due to the economic downturn. Reduced demand from bottleneck in the North American pipeline coal transport had increased available rail network and the ease of using rail cars that capacity, decreased utilisation and weighed can travel on almost any track. In other on freight rates. The rail industry’s misfortune words, the existing pipelines are either full was the oil industry’s gain. Available capacity (at capacity), or there are not enough lines and attractive rates were welcome news to to link a proper network to work efficiently. refineries that want to buy discounted crude Rail, albeit a limited solution, fills the gap at from the land-locked Midwest United States a price that is economically attractive – for and Canada. now. North American refineries have been Chris Thorpe is the founder of CTA Financial LLC, quick to book more trains to capture Pipeline delays a commodity trading advisor. Based in New York, discounted crude oil trapped in land-locked For decades the most efficient long-term the firm provides advisory and execution services shale states without direct access to pipelines. transportation solution for liquids has been for commodity hedging clients. Refineries in the Pacific Northwest above ground pipeline. Using pipelines for

Contact: Chris Thorpe ‘Rushing to take profit from an arbitrage opportunity could lead CTA Financial LLC Email: [email protected] to cut corners and/or the choice of less adequate transportation Web: www.ctafin.com providers’

40 www.bunkerspot.com August/September 2013 bunkerspot Commercial Issues

crude oil does, of course, have risks, including rail from Alberta was more attractive than spills and sabotage. More spill risk may result imported water-borne oil to its own port. ‘As super scale pipelines, from occasional theft in higher risk countries So much so that it made sense to build in Africa, such as Libya and Nigeria, but it new offloading facilities for incoming rail storage facilities, remains a risk for any pipeline owner. cars carrying crude. From the upstream oil refineries, ships and plants Although several new projects have through to the downstream refined products, been proposed in North America to handle logistical bottlenecks, storage and distribution become more common, the increasing supplies, approvals have been slow become an even greater risk. diversification of supply due to politics and environmental hurdles. Safety standards throughout the oil Two major projects that would move oily industry have improved over the years becomes weaker and risk Canadian tar sand crude to the US Gulf or but accidents still happen. And today the tends to increase’ the Canadian west coast have been delayed risks may be greater in magnitude if due to environmental concerns and politics. not frequency. New refineries are taking The former, known as Keystone XL and advantage of scale economics and total size American Strategic Petroleum Reserve being built by Canadian pipeline company of throughput is double what would have (SPR). Enbridge, has been blocked by the US been world scale only 10 years ago. This The SPR was created after the 1973 oil State Department based on concerns over increases the dependency on the operator of embargo, which left the United States starved oil spills in sensitive environmental areas. the refinery, the upstream suppliers and the for imported oil barrels. Two important The second all-Canadian Enbridge management of the inventory. One small things have changed since 1973. The first pipeline, known as the Northern Gateway, operational glitch can shut down a small is that the price of oil is now persistently would take crude oil from the Canadian oil country or cause major supply problems for approaching $100 per barrel and, arguably, sands to the west coast and onto Asian buyers its main dependent consumers. holding supply back only increases the (and potentially a new refinery in British price of fuel. The second is that there is less Columbia). The delay of both these projects Mega bottlenecks need for inventory since North American has led to increasing demand on rail and road On the port and marine side of transportation, energy sources have increased at the expense transport of crude oil. the bottlenecks are export terminals and of Organization of the Petroleum loading facilities. Major bottlenecks currently Exporting Countries (OPEC) imports. exist for natural gas and natural gas liquids for Since there is less dependence on both import and export in most countries. imported crude oil there is thus less need to Although several new In the case of compressed gases of any kind, have the SPR. And if the SPR is not used projects have been the infrastructure costs of storage, loading to absorb supply shocks, there is not much and discharge far exceed those of similar use for it at all. The commercial answer proposed in North projects for liquid fuels, from crude oil to is not new to any fuel re-seller. To own a America to handle all refined products that are in liquid phase tank where product is imported is to have under normal circumstances. For example, a power over the market. The fewer suppliers increasing supplies, world scale natural gas liquefaction plant may there are with tanks and inventory, the better approvals have been cost as much as $4 billion versus a refined the supplier pricing power. This business product tank farm and loading facility which strategy comes at a significant cost. When slow due to politics and may cost less than one tenth of that amount. crude oil is $100 per barrel, to own and store environmental hurdles The result of mega facilities may be oil inventory creates huge working capital super bottlenecks if and when an unforeseen requirements and could ultimately damage disruption occurs. Since prices for fuel are profit margins. mostly inelastic at the best of times, resulting For the consumer, it is valuable to In the absence of pipelines, the market super bottlenecks may cause even larger price maintain a diverse set of suppliers and to players do their best to get their product to swings than seen in the past. For example, be able to accept supply in different modes, market using rail and trucks (if not ships). news of a shutdown at any of the existing including sea, rail and road. Economics and Unfortunately, truck and rail are weak links North American crude oil pipelines usually profit always drive the equation but public compared to marine vessels and pipelines. induces sharp prices swings as traders safety cannot be ignored. With very high Rarely is a pipeline or vessel safety incident struggle to guess when the pipeline will flow prices and profits in the balance, we too the cause of major injury or death. The again. The same can be said for a large-scale often see corners cut resulting in tragedy - same cannot be said for rail or truck. The refinery shut down due to surprise flooding the ultimate cost. most recent rail catastrophe involving crude or fire. As super scale pipelines, storage Whilst there is no easy answer, a well- oil occurred in July 2013 at Lac-Mégantic, facilities, refineries, ships and plants become diversified fuel network which has fewer Quebec, where a runaway train hauling 73 more common, the diversification of supply single source dependencies is almost always rail cars of crude oil derailed and exploded, becomes weaker and risk tends to increase. optimal. In North America, the current claiming dozens of lives. major bottleneck is the pipeline system – In this case, New Brunswick-based Increasing inventory elsewhere bottlenecks may vary. However, Irving Oil was bringing oil supplies from The answer to the supply shock risk problem there will always be another bottleneck to Alberta to its most easterly refinery by rail, is usually increasing storage and inventory, remove in order to increase profits and safely since no east-west pipeline reaches that which runs counter to the goal of profit improve supply. Both worthy goals whether location. For Irving, the price of crude by maximisation. The best example of this is the by land or by sea.

42 www.bunkerspot.com August/September 2013 bunkerspot Regulatory Issues Siege mentality

John Denholm, President perating in a highly competitive, volatile world of derived ‘It is also essential of BIMCO, has described Odemand for their services, that whatever is to be shipowners face what often appear to the impact of green be insurmountable challenges on a implemented on the quite regular basis. Nevertheless, today’s legislation on shipping as challenges, and those in the medium- environmental front is an ‘environmental siege’. term future, are more than usually managed on a global difficult and certainly more complex basis and does not In this feature, he outlines than the challenges of the past, where supply and demand problems would descend into a confused, the key pressure points have been the predominant concerns. The shipowner today faces a whole impractical and unfair and explains BIMCO’s range of external unknowns which will series of regional hugely affect future profitability. We have an stance on eco initiatives oversupply of tonnage – nothing new about regimes’ that – past exuberance having been overtaken by the cold realities of the financial crisis. But whereas in the past the overhang of tonnage pressures as it comes to terms with the would be effectively self-controlled over time costs of complying with sulphur reductions by the obvious expedient of not building and the requirements of the ballast water new ships and by natural fleet shrinkage convention. There is also the near certainty through demolition, there are now new and of facing further action on the mitigation of disturbing factors in play. greenhouse gases (GHG), regardless of the Driven by the collective pressures of great technical and operational measures that attractive newbuilding prices, the quest for have already been put in place by so many fuel efficiency as bunker prices spiral upwards, operators. as well as technical improvements in the area What can BIMCO do in such of fuel efficiency, the normal pattern has circumstances? It is clear that there are both been disturbed by a surge in the construction practical and moral arguments to be made, at of energy-efficient designs. Whatever else the International Maritime Organization they might do for their owners, these so- (IMO) and other fora, and BIMCO is able called ‘eco’ ships will surely delay the return to bring to the table the combined expertise to the balanced market which the industry of practitioners from every shipping sector needs to facilitate its recovery. The effect of who understand the practical realities of this tonnage upon the natural ‘ageing and implementing these significant changes. replacement process’ of the world fleet is still to be determined. Green pressures A further uncertainty which our shipping There can be no underestimating the industry predecessors never had to face stems intense pressures that the shipping industry from the growing weight of regulatory is under to reduce its impact upon the requirements. Pressure on the industry to sea and atmosphere. I have described the improve its operational procedures as a combination of these green pressures as an consequence of its impact on the marine ‘environmental siege’, and it is clear that habitat and the environment at large is both the political and social climate makes resulting in new rules and regulations which it impossible for the marine industry to resist unavoidably become politically charged, and the pressures for greater ‘sustainability’. In in the Baltic and International Maritime BIMCO there are no illusions about the Council’s (BIMCO) experience stopping necessity for the industry to implement John Denholm was appointed as Group Chairman such political movements is rarely possible. these changes, despite its record as the most of J&J Denholm in 1998. In addition to his role These threaten the industry with a whole environmentally friendly means of industrial as President of BIMCO, he is also a Director of variety of additional costs, arguably at a time transport. Braemar PLC, a Director of the UK Chamber of However, it is important that the process Shipping, a Member of the General Committee when they can be least afforded. of Lloyd’s Register, and a Director of Hadley As BIMCO’s President, there is little is properly managed, is practical, workable Shipping Ltd one can do about the supply and demand and above all, affordable. It is also essential for shipping. It therefore seemed entirely that whatever is to be implemented on the Contact: appropriate in the circumstances to focus environmental front is managed on a global BIMCO on the theme of the environment for my basis and does not descend into a confused, Tel: +45 44 366 800 two-year period in office when so many of impractical and unfair series of regional Web: www.bimco.org these challenges are emerging. The industry regimes, each imposing something different can expect no let-up in the environmental on shipping. With its high level contacts

44 www.bunkerspot.com August/September 2013 bunkerspot Regulatory Issues

throughout the world, BIMCO is in a good better fuel optimisation and its consequent position to present the realities of practical ‘In the absence of costs reductions. marine transport to a wide circle of interest. Some will invariably demand more, but There can be no doubt that the either a breakthrough in the industry, through its slower steaming requirement for low sulphur fuels presents scrubber technology or initiatives and development of new real problems for many owners – particularly fuel-efficient designs produced through given that they are facing a drastic reduction evidence that enough engineering, hydrodynamics, coating in sulphur emissions to 0.1% in Emission distillates are going to improvements and more precise ship Control Areas (ECAs) in 2015 and 0.5% operations, is making substantial reductions on the high seas, possibly from 2020. The be available, BIMCO will in carbon emissions. BIMCO continues choices facing them are stark – embrace the push for the dates for the to argue that these highly productive uncertainties of scrubber technology (still far developments make environmental ‘target from a settled science), burn distillates, with implementation of 0.5% setting’ measures – that will only put up the implications for both cost and supply, or move limit to be deferred’ cost of using marine transport – pointless and to liquefied natural gas (LNG), with all its futile. technical imponderables and infrastructural Other issues within the environmental challenges. afloat and ashore. In the absence of either agenda include the vexed question of ballast While the number of ships fuelled a breakthrough in scrubber technology or treatment systems to meet the requirements by LNG is likely to increase, it is probable evidence that enough distillates are going to of the Ballast Water Convention, likely to that this change will be largely confined to be available, BIMCO will push for the dates enter into force in the near future. While offshore supply craft and ferries or vessels for the implementation of the 0.5% limit to the industry is anxious to comply with the operating in areas where there is an established be deferred. Convention for all the obvious reasons, this specialist supply infrastructure. There may be issue is not shifting forward as the treaty was a number of conceptual designs for LNG- Distillate availability agreed before the technology was available. fuelled bulkers, tankers and containerships, Also hanging over the shipping industry is The sheer volume of systems that must be but it is probable that several years will pass the political agenda of global warming and retrofitted, the uncertainties about their before LNG emerges as a feasible alternative the resulting demands for targets for carbon effectiveness, and variations between national in the deep-sea trades. emission reduction from the industry, along approval regimes has made this costly BIMCO has also stressed that much with political enthusiasm for ‘market based investment full of imponderables. more needs to be understood about the measures’. As ever, BIMCO is using its influence, probable availability of distillates, should the It is fair to suggest that the industry armed with the practical expertise of its industry have to turn to this fuel on a global has a vested interest in improving its fuel members, to try and resolve a difficult and level. It has been estimated that the industry efficiency and its operational and technical unworkable situation. These are just the would consume between 15%-20% of the developments are already going a long way environmental challenges – there are of world’s distillate production, but there has in reducing carbon emissions. BIMCO has course other challenges of the moment, been no proper appreciation of the ability supported practical efforts by the IMO in such as the growing trend of piracy in the of the refiners to provide for this demand, respect of the newbuilding Energy Efficiency Gulf of Guinea, and questions over ship or the consequences in terms of price or Design Index (EEDI) and the Ship Energy design following the catastrophic failure on availability for all the current consumers Efficiency Management Plan (SEEMP) for the MOL Comfort. Taking everything in to of this product. Thus, a refining problem existing ships. It is clear that both the account, I believe we, at BIMCO, are going offers aavrv direct Landscape threat to Terpel the shipping 19x6,5.pdf industry 1 7/24/13environment 6:45 PM and the industry will gain from to be kept very busy in the months ahead.

bunkerspot August/September 2013 www.bunkerspot.com 45 Insolvency Issues Quick off the mark

When owners or onfederate General Nathan Bedford Forrest, one of the most ‘At the first indication of a charterers file for Ccelebrated cavalry commanders potential filing, a bunker of the 1861-1865 United States Civil War, insolvency, bunker is reported to have said: ‘Get there the supplier should not first, with the most.’ suppliers must act quickly As the war became more difficult for the hesitate to arrest’ Confederacy (the Southern states attempting to protect their own to separate from the Northern ones), Forrest interests. Steve Simms of faced what seemed to be overwhelming or any current ship mortgage either. What is odds. Large numbers of Federal cavalry also likely is that the owners and mortgage Simms Showers explains tried to surround him and his small number holders are content to have junior interests of seemingly under-equipped troopers. (of which bunker suppliers are the main how the well prepared However, Forrest had excellent intelligence ones) continue to sell to the vessels so that officers who understood the terrain and they can earn freights – or at least not breach supplier can keep ahead their opponents. Whenever superior forces charter parties or, for the want of fuel, drift looked set to be soon be upon him, instead of or go aground. in the creditors’ race retreating, he charged, sabre drawn, in front Many charter parties, for example, of his troopers and frequently won against provide that the owner takes a lien against apparently overwhelming odds. any bunkers put aboard the vessel when Forrest never provided bunker fuel to a the charter hire is in arrears, so the owners are eager to allow a charterer in default to vessel, but he understood the only strategy that take on more bunkers on credit. The same has any chance of winning against a superior owners, of course, are quick to point out force: get there the first, with the most. ‘no lien’ stamps on bunker delivery receipts US bankruptcy law, no matter whether (BDR) or charter parties’ ‘charterers only it is Chapter 11 (reorganisation), Chapter 7 account’ provisions, when the charterers (liquidation) or Chapter 15 (assistance to a haven’t paid (but the owners gladly exercise foreign bankruptcy proceeding), is a superior their liens against the bunkers provided on force to bunker suppliers. If the bankruptcy credit, or the freights which the bunkers have courts enter the orders first, the bunker enabled the vessel to earn). supplier is subject to US jurisdiction (which Forrest was known to sharpen both many are because US bankruptcy courts sides of his cavalry sabre. That’s a good, first consider their jurisdiction to be extensive) example for a bunker supplier to follow. and finds itself under the restraints of US Be sharp. Ask what is the nationality of the bankruptcy stay orders. That is to say, it finds entity/customer that you are dealing with and itself a ‘prisoner’ while other creditors of the what do the insolvency laws of that country charterer or owner assert their interests over provide? For example, if your customer those of the bunker supplier. files insolvency proceedings, do those Shipowner or charterer insolvency automatically void any attachment you’ve proceedings should rarely be a surprise to made of the insolvent customer’s assets? If any creditor, particularly to a bunker supplier. so, just about any country (United States, The diligent supplier has watched not only United Kingdom, Canada, New Zealand, its own receivables, but also the public media. Japan, Australia) which has a cross-border It has kept in contact with other bunker insolvency law to assist another country’s providers, and also with other creditors of insolvency proceeding (whether or not, that the customer who might be in different parts country itself would assist) will, if there is an of the industry (tug companies, stevedores, insolvency filing, order that the seizure of the container lessors), and it has seen that the insolvent’s assets be released. But there is a customer has drawn out its accounts so that fine ‘edge’ to this: the courts will not order it is out of terms with many suppliers. the release of an in rem arrest; they will only It is not a far stretch to know that if the order release of an ‘attachment’. customer is a charterer or even a shipowner It is critical for the bunker supplier to (or some combination of both), if it is paying know that, throughout the world, the word its bunker provider and other suppliers out ‘arrest’ for a bunker supplier does not mean Steve Simms is Principal of Simms Showers LLP of terms, it also isn’t paying its charter hire the same thing. In the United States, Panama, Contact: Tel: +1 410 783 5795 ‘It is critical for the bunker supplier to know that, throughout the Email: [email protected] Web: www.simmsshowers.com world, the word “arrest” does not mean the same thing’

46 www.bunkerspot.com August/September 2013 bunkerspot Insolvency Issues

France, and Canada (if the court recognises a shipowner or charterer, invariably have not US or other country’s in rem maritime lien) ‘Ask what is the only prevented arrest but also refused to and a handful of other jurisdictions, ‘arrest’ grant bunker providers adequate, substitute means that the vessel itself always owes the nationality of the entity security. bunker provider, no matter whether the or customer that you are This is the ground that bunker suppliers charterer or owner still owes the bunker will have before them, in the United States provider (or whether either is still in business dealing with and what do and like jurisdictions, in present and future to be subject to a claim). the insolvency laws of owners’ and charterers’ insolvencies. The However, in most Commonwealth choice is either to be swallowed up by the jurisdictions, arrest requires that there not that country provide?’ ground, or be proactive. only be a supply to the particular vessel In fact, the benefits of insolvency which the bunker provider has sold to, but filing seem now to be so great for owners that the vessel’s owner also be responsible That was what Forrest knew would or charterers which are behind in their directly (in personam) for paying for the happen if he waited for what seemed to obligations, that it is irresistible. There provision. That is usually a tall order because be far superior forces to surround him. So, are many ‘post-petition’ financers eager owners, as every experienced bunker supplier he got there first. In the case of a bunker to build on precedents giving them almost knows, make every effort to hide behind their supplier this means arresting as soon as certain, high percentage returns approved charterers, although they readily benefit from you can, wherever you can, in the best by insolvency courts. What this means is their charterers’ credit including, without places that you can. This is because, once that at the first indication of a potential hesitation, asserting their liens over unpaid an arrest is in place, the arresting bunker filing, a bunker supplier should not hesitate bunkers, ordered by charterers in default. supplier has more of a position to hold to arrest. It should track all vessels the Bunker suppliers are increasingly out- against the pre-packaged financers, or post- customer operates, not just those which the numbered by vessel financing interests, petition financers. The insolvent customer provider has supplied, and also be aware of including those which provide ‘debtor in must attempt to throw off the arrest, and the the customer’s own customers, which may possession’ financing. The latter connect with financers may think twice about extending owe it receivables. If a vessel is arriving in vessel interests before an insolvency filing, the credit while the arrest is in place or the United States or another place where arranging for ‘pre-packaged’ financing to be decide to pay it off. the bunker provider can arrest, including rushed into a US or other bankruptcy court. If the arrest is in a place recognising an Panama, the bunker supplier should not This provides for all claims to be subordinated arrest in rem, the arrest should hold despite hesitate to do so. to the financing. The irony of such a situation the insolvency filing. This is because in The bunker supplier also should be is that the very claims which have given value such jurisdictions (United States, France, aware of the insolvency law provisions to the vessel owner or charterer to make or Panama, for example), an in rem which might apply to the customer – ‘pre-packaged’ financing desirable in the first maritime lien against a vessel is considered before the customer makes any filing – to place – the bunker providers’ claims – are to be of the same or greater priority as a ensure that any actions which the supplier subordinated. With a filing, bunker providers mortgage against that vessel (depending takes will be cost-efficient (and not have in many situations are kept from arresting on the nationality of the mortgage). The to be abandoned with any filing). The vessels to recover for the bunkers they have insolvency court has no more power to bunker provider also should constantly be provided – literally – to keep the insolvent order the release of the in rem maritime reviewing its sales terms and conditions owners, or charterers, ‘afloat’. arrest, than it has to order that the ship to make sure that it gives the provider the The same becomes true in a cross-border mortgage holder give up its mortgage. greatest benefits, including for in rem arrest, insolvency situation. An insolvency is filed US bankruptcy courts, specifically in and the ability to rescind credit lines, when in a place which might not recognise an in Houston and Manhattan, have in the last five insecure, if there is an indication of an rem maritime lien, but the insolvent entity years been the places of choice for insolvent impending customer insolvency. then proceeds to obtain an order through shipowners and charterers –however remote In the present economy, bunker a Chapter 15 filing in the United States or their connection to the United States providers, like General Forrest and his a similar filing in Canada, or Japan. There, might be – to file either direct insolvency troopers, must fight hard to survive. the bunker supplier (which either has sold proceedings (using, for example, their Customers are asking bunker suppliers to a vessel in the United States subject to relatively newly-established US affiliates) to do what many used to do: to be the terms and conditions incorporating US law, or Chapter 15 proceedings assisting foreign financers of the marine industry. or sold elsewhere subject to US law terms insolvency proceedings. So for bunker suppliers, faced with and conditions or those otherwise providing For bunker providers, once those the sometimes overwhelming impending for an in rem maritime lien) would – except proceedings are filed, the battle essentially is forces of ‘post-petition’ financing and pre- for the order – be able to arrest the vessel over in the US courts, at least in the short packaged insolvency, the word is, ‘get there regardless of whether its owner had to pay term. Yes, there are very good arguments that the first with the most’. In the end, while the bunker provider (in personam) directly. bunker suppliers who have security interests his cause did not prevail, General Forrest The bunker supplier thereby loses a valuable in rem every bit as strong as mortgage holders never lost a battle. So, after the war he also security which it had relied on when it should be able to arrest, and that, with was quoted as saying: ‘I ended the war a extended credit to the customer. The vessel any restraint, those in rem interests will be horse ahead.’ Bunker providers, by staying owner, and mortgagors, literally take the insecure. ahead of likely insolvency, can themselves, bunker supplier as a ‘prisoner’, and pocket However, US bankruptcy judges, focused notwithstanding the insolvency war staked the bunkers provided. on the rehabilitation of the insolvent against them, ‘end a horse ahead’. bunkerspot August/September 2013 www.bunkerspot.com 47 Company Focus: Petrogal Iberian insight

Llewellyn Bankes-Hughes etroleos de Portugal (Petrogal SA), Portugal’s publically-owned ‘Manso sees expansion meets António Joaquim P‘national’ oil company and the into Spain as a natural country’s main bunker and lube oil Manso, Marine Manager supplier, is not only consolidating its progression following its position at home but is also planning at Galp Energia’s a push into the much bigger bunker earlier moves into Spanish markets of Iberian neighbour Spain. gasoline, aviation and Petrogal Petrogal represents the petroleum interests of holding company Galp Energia industrial markets’ which was listed on the Euronext Lisbon stock exchange in April 2006. Based in Lisbon, it currently employs over 7,000 Lisbon and to oversee a move into Spanish ports. people and generates revenues of some €18.5 The volume of sales in Portugal fluctuates billion ($19.9 billion). depending on activity in competitive ports, Petrogal was formed in April 1976 by most notably Gibraltar and Las Palmas. But amalgamating four of Portugal’s main energy Petrogal’s eventual move into Spain may help companies, SACOR, CIDLA, SONAP mitigate the impact. and PETROSUL, all of which had been Manso sees the expansion into Spain nationalised following the ‘Carnation as a natural progression following its earlier Revolution’ military coup in April 1974. moves into Spanish gasoline, aviation and Now, its parent company Galp Energia industrial markets. consists of more than 100 companies The Spanish bunker market is at least engaged in activities ranging from deepsea five times bigger than the Portuguese one oil and gas exploration and production, and some of its ports are already highly natural gas supply, regasification, aviation, competitive. Petrogal already delivers a small transport, storage, and distribution; refining, volume of marine gasoil (MGO) to fishing trading, logistics and retailing, as well as the vessels by road tank wagon (RTW) in the generation of renewable energy. Galp has an busy Galician port of Vigo. However, it is active presence in 15 countries, including now actively applying for operating permits Portugal and Spain in Europe, Cape Verde, in a range of larger Spanish ports. Eventually, Angola, Mozambique, Guinea-Bissau, the plan is to supply in a number of ports, Swaziland, Gambia and Equatorial Guinea both in northern and southern Spain, with in Africa, Brazil, Venezuela and Uruguay in the first deliveries expected in 2014. South America, and East Timor in Asia. In Portugal, Petrogal runs two refineries Petrogal’s Marine Manager, António from which it sources all of its marine fuels, Joaquim Manso, six months into his second and owns and operates two storage terminals stint on the bunker desk after 15 years in the and three bunker barges, and also charters a jet fuel sector, has two main objectives: to large fleet of RTWs. In Spain, once operations develop and promote bunkers-only calls into begin, Petrogal, through Spanish subsidiary

Contact: António Joaquim Manso Marine Manager Galp Energia Tel: +351 21 724 26 31 Web: www.galpenergia.com

48 www.bunkerspot.com August/September 2013 bunkerspot Company Focus: Petrogal

Galp Energia Espanha, will avoid investing oil and 150 mt/h for MGO. in bunkering infrastructure and instead will The other, the Spanish-flagged Bahia ‘Petrogal is keen to charter barges and RTWs, as necessary, rent Tres, is a 7,032 DWT double hull barge, with tank storage space and acquire marine fuels a capacity to carry 5,800 mt of heavy fuel promote Lisbon as a from Spanish sources via reciprocal supply oil and 450 mt of MGO. Its pumping rate bunkers only port and agreements. is 500-600 mt/h for fuel oil and 250 mt/h Petrogal is the market leader in refined for MGO. This vessel is also used to deliver has started to offer more product distribution in Portugal. Spain’s product from the Sines refinery to storage in competitive calling costs’ Repsol and CEPSA are also in the market Lisbon. but while, for example, Repsol’s small but Lisbon caters to container ships, general rising sales volumes currently amount to cargo and bulk shipping. It is a sheltered 5,000 mt of MGO and 17,000 mt of fuel oil about 40,000-50,000 metric tonnes (mt) a port with three protected anchorages inside and ex-pipe facilities through which it can year, all delivered by RTW, Petrogal currently port limits and is therefore considered safe supply MGO and 380 cst fuel oil tankers supplies around 600,000 mt of fuel oil and for bunkering by barge. The capital city’s discharging cargoes into or loading cargoes 150,000 mt of distillates a year in Portugal’s port also caters to cruise ships, particularly out of the refinery. Along with tankers, Sines seven main ports. Sines currently accounts for in the peak months of May and June and mostly caters to bulk carriers and container around 45% of all of Petrogal’s bunker sales, September and October, when as many as ships, although these is also a liquefied natural Lisbon 35%, Setubal 8% and the remaining four cruise ships a day require bunkering. gas (LNG) terminal in Sines and LNG ships ports together some 12%. According to Petrogal is the largest supplier of cruise ships are now being bunkered with fuel oil there Manso, around 50% of bunker deliveries are calling in Lisbon, partly because it is able to by Petrogal. According to Manso, there are no guarantee on-time delivery with little or no made by barge, with RTWs used widely and immediate plans to develop LNG bunkering delays. a pipeline used only in Sines. facilities in Portugal despite the LNG import According to Manso, Petrogal is keen to Petrogal’s fuel supplies are all derived terminal and inland gas supply infrastructure. promote Lisbon as a bunkers only port. High from its two Portuguese refineries, some Despite being a Portuguese island, the from the 100,000 barrels a day (b/d) plant calling costs in the past have deterred buyers highest volume supplier on Madeira is Spain’s at Porto to the north of capital Lisbon, but from calling at Lisbon for bunkers only, but Repsol, which mainly supplies international most from the 230,000 b/d unit at Sines, to over the past year or so, Petrogal has started shipping while Petrogal supplies smaller ships the south. Petrogal supplies marine gasoil to offer more competitive calling costs, and ferries. Although the fuel is derived from (MGO), intermediate fuel oil (IFO 180) including agency fees. the Sines refinery, with Repsol and Petrogal and low sulphur IFO 180, and heavy fuel oil Some 30 miles south of Lisbon, the port sharing the cargo, no high sulphur fuel is (HFO 380) and low sulphur HFO 380. of Setubal has a major and thriving shipyard, available. Repsol operates storage tanks on In the north of the country, adjoining Lisnave, while a wide range of vessels call Spain’s Galician border, Viana do Castelo has there, including container ships, bulk carriers Madeira, from which it supplies the local a small, historical – but currently financially and ro-ro vessels. Deliveries are made by utilities, but unusually, the import terminal troubled – shipyard and its main shipping barge and RTW. is not connected to the storage tanks. Fuel activities are general cargo and fishing. At Sines, site of the country’s largest deliveries have to be pumped to the terminal Further south, the port of Leixões, the main refinery, Petrogal has tank facilities to store and then trucked to the island’s storage tanks. port for Portugal’s second city, Porto, handles In the Azores, Portugal’s other Atlantic tankers, bulk and container shipping, Aveiro, island territory, local company Bencom famous for its salt flats, caters to chemical is the main supplier, but here only marine tankers, general cargo and fishing boats, gasoil is available. and the fishing port of Figueira da Foz is Looking beyond Portugal, Galp renowned for its sardines. All these ports are Energia has partnerships in companies in supplied by RTW alone. all of Portugal’s ex-colonies, most notably In Lisbon, Petrogal has facilities to store in Angola, Mozambique and Brazil, and 25,000 mt of MGO and 7,500 mt of fuel most prominently in upstream oil and gas oil, and one dedicated bunker barge, the exploration and production. In the bunker 2012-built Sacor II, which is based in Lisbon business it has a working relationship with but is also able to deliver bunkers in Setubal. Enacol in the former island colony of Cape The Portuguese-flagged 2,709 deadweight Verde, and Petromar in Guinea Bissau. tonne (DWT) barge, with a capacity to carry Petrogal’s utilities use 1% max sulphur 1,840 mt of fuel oil and 410 mt of MGO, has fuel oil but its refineries produce more low a pumping rate of 350 mt/h for fuel oil and sulphur fuel than is needed domestically and 250 mt/h for MGO. excess volumes are currently exported. With Two other barges, based in Sines, are used recession continuing to grip the country, it is mainly to deliver bunkers to ships in Sines likely that less fuel is being used domestically and Setubal. and more is being exported. Once tighter The 2004-built Spanish-flagged Nivaria maritime environmental restrictions kick in, is a 4,250 DWT double hull barge capable of however, much of the excess supply of 1% carrying 3,500 mt of fuel oil and 500 mt of sulphur fuel oil is likely to find its way into MGO. Its pumping rate is 500 mt/h for fuel the bunker pool. bunkerspot August/September 2013 www.bunkerspot.com 49 Port Focus: Port Louis Port planning

Port Louis has ambitions auritius, as well as enjoying the reputation of being a paradise ‘Despite the worldwide to be a bunkering hub. Misland, is also emerging as a preferred bunker destination in the East economic slowdown Port Agency Services African region. since 2008, Port Louis has Port Louis’s role as the capital city (Mauritius) outlines the is largely due to its favourable natural recorded an increase of location which has enabled it to develop as about 30% in the number port’s vision for the future a commercial harbour. Port Louis harbour is located on the north west coast of Mauritius of vessel calls’ and is strategically situated in the Indian Ocean on the shipping routes linking Australia, Asia, Africa and Europe. was recorded for 2012 compared to the year The port plays a vital role in the national before. economy and contributes over 2% of the The port’s container terminal is also country’s GDP. Over the past decade, this showing an increase in throughput. The main sea port has been the focus of a number terminal, which was established to make Port of significant infrastructural developments, Louis into a transshipment hub, currently including some relating specifically to handles some 8,000 twenty-foot equivalent bunkering activities. Today, Port Louis unit (TEU) vessels with a draft of about 14.5 already is a modern port with the necessary metres (m). In 2012, Port Louis recorded infrastructure and facilities in place to an increase of about 37% in the volume of promote itself as a world class harbour. transshipment containers. Some $3.5 million has been invested in This overall increase in volumes has had port development over the past three years a positive knock-on effect on bunkering and another $3.5 million is earmarked for activities in Port Louis. Since 2009, bunker new projects over the next five years. A volumes at the port have increased by about key development has been the construction 28%, and currently stand at around 330,000 of a dedicated oil jetty which came into metric tonnes (mt) a year. This figure may operation in 2008 to accommodate liquefied be very far from the volumes achieved by petroleum gas (LPG) and oil tankers. The new Singapore or the nearby South African facility has drastically reduced the safety and ports but, given the port’s relative size, security risks associated with the handling of these growth figures are impressive. Bunker petroleum products in the harbour. Also, it is volume by barge showed an increase of about now possible to accommodate larger tankers, 8% in 2012 compared to 2011. As well as the with resulting cost benefits to the nation’s range of services offered to vessels calling at economy. Port Louis, its position on the shipping routes In 2010, Mauritius’ performance in the between Europe, Asia and Africa adds to its Logistics Performance Index, which looks attraction as a port of call and also makes it at the efficiency of the Customs’ clearance well placed to handle emergency calls. process, was rated at 2.71 (1=low to 5=high). Currently, the country is able to Mauritius is also ranked 33rd out of the 155 supply two marine fuel types that conform countries with a score of 3.24 in terms of to International Organization for international shipments and also has an Standardization (ISO) requirements: infrastructure score of 2.29, according to a marine gasoil (MGO) (DMA) and World Bank report published in 2012. intermediate fuel oil (IFO) 180 (cst) (RME). Despite the worldwide economic The sole importer of bunker fuel in Port slowdown which has occurred since 2008, Louis is the government-owned State Port Louis has recorded an increase of Trading Corporation (STC). The STC about 30% in the number of vessel calls. A sells the imported bunker fuel to local bunker significant number of these extra vessels are suppliers such as IndianOil, Vivo Energy now calling at Port Louis for security crew Mauritius, TOTAL and ENGEN. transit as Mauritius is located outside the Currently, the STC imports bunker high risk piracy area whilst remaining on the fuel from Mangalore Refinery and popular south bound shipping route. Petrochemicals Ltd (MRPL) in India. Contact: More fishing vessels are also now Bunkers at Port Louis are delivered to vessels Port Agency Services (Mauritius) Ltd calling at Port Louis for their fish discharge, either at quay or at anchorage (delivery at Tel: +230 211 02 79 warehousing facilities, fish processing plants, anchorage is carried out by barge). Allowable Fax: +230 213 67 54 bunker uplifting or just for provisions. As an drafts at quays can go up to 14.5 m, whilst Web: www.portagent/mu/ illustration of growth, an increase of about depths at anchorage can reach down to 11% in the number of fishing vessel calls 70 m, allowing for servicing of very large bunkerspot August/September 2013 www.bunkerspot.com 51 Port Focus: Port Louis

vessels. no such hub yet exists in the lower Indian There are currently four bunker barges ‘The Mauritius Port Ocean region. However, the various parties operating in the port area: MT Louis 1, MT involved within the port development are Tristar Glory, MT Minorque and MT Louis Tafo. Authority offers rebates on seriously gearing up and setting their sights Bunker deliveries are carried out round the port charges to encourage on achieving this objective. Other harbours clock by all the suppliers and all deliveries in countries such as Madagascar and the must take place within port limits. bunker calls’ Seychelles, and ports such as Durban or The Mauritius Port Authority offers Beira, are, of course, competing against Port rebates on port charges to encourage bunker Louis to secure bunkering business. However, calls – these charges are much lower in 10,000 TEU vessels with an increased draft the Mauritian port has a sound bunkering comparison to South African ports. With of 16.5m – in future it is hoped to increase infrastructure and further improvements are a bunker infrastructure already in place this to a depth of 18.5 m. Petredec is also planned. New bunker suppliers and service (tankage, ex-pipe facilities and barges), there constructing LPG storage with capacity of providers are also entering the market thereby is also no congestion or waiting time at some 10,000 tonnes within the port area. encouraging more healthy competition. Port Louis. Therefore, it is often cheaper to This project has been developed in a bid to Port Louis will need to offer even more bunker in Port Louis than, for example, in establish Port Louis as a regional hub for the attractive initiatives if it is going to achieve the Cape Town, although the product in Cape supply of LPG to neighbouring islands and ‘hub’ status it desires, such as offering other Town might be much cheaper than in the some East African countries. Many other grades of bunker fuel, e.g. FO 380 or lower Mauritian port. projects are currently under consideration by sulphur diesel, supplying quality bunker fuel, In an attempt to transform Port Louis into the port authority in order to make optimal increasing storage capacity and maintaining a regional maritime, logistics and business use of unused port areas, including a scheme well-managed onshore and offshore bunker hub, a huge investment ($114 billion) is to build extra bunker storage. activities. However, with more projects in being made in the extension of the existing Port Louis has not yet become the bunker the pipeline, these goals are seen as realistic container terminal by 240 m to accommodate hub it aspires to be – and it is also a fact that and attainable in the not too distant future.

‘A significant number of extra vessels are now calling at Port Louis for security crew transit as Mauritius is located outside the high risk piracy area whilst remaining on the south-bound shipping route’

bunkerspot August/September 2013 www.bunkerspot.com 53 Port Focus: Aberdeen Supply outlook

he logistics and storage terminals period of exploration, and the subsequent Alison Stodolnic of the in Aberdeen Harbour were built discovery of oil and gas reservoirs deep Geos Group explains Tto serve the North Sea offshore beneath the North Sea, construction, drilling oil and gas industry. Support vessels and extraction began in earnest. More ships the procedures and need to take on fuel and other supplies and supplies were needed and huge demands at the same time, at a single berth, were put on Aberdeen’s resources. This was challenges in ensuring which is why logistics terminal operator the catalyst for the most dramatic period of Peterson SBS and marine gasoil supplier large-scale rebuilding and development on a 24/7 bunkering operations the Geos Group have formed a strategic scale not seen before, or since, on Scottish at Aberdeen Harbour bunkering partnership in the harbour. shores. Aberdeen Harbour has a fascinating To help satisfy the enormous needs history, spanning eight centuries. There are of the offshore industry, Victoria Dock records of ships trading there as early as the was dredged, the navigation channel was twelfth century; by the sixteenth century deepened and wharves were rebuilt. The port there was a crane in place for loading cargo, of Aberdeen began to operate 24 hours a day, and plans for deepening the harbour entrance a new roll-on roll-off (ro-ro) terminal was were well underway. The North Pier was built, storage capacity increased, services and built in 1780 and, as a result, shipping traffic facilities were improved and shipping traffic and trade increased rapidly. rose to record levels. In 1991, Aberdeen’s The nineteenth century saw the last shipbuilding yard closed and made way construction of Victoria Dock and three more for the construction of Telford Dock, now quays, and the installation of hydraulically home to Russells, Duthies, Halls and Clipper operated gates. Aberdeen Harbour continued Quays. to expand in the first part of the twentieth The three large logistics and storage century and it became deeper, bigger and terminals in Aberdeen Harbour – on the better equipped. Having suffered significant south, central and north sides – were built damage during World War II, great efforts as a result of this increased capacity, and were made to repair and regenerate the area in response to the needs of the offshore and additional deep-water berths were built industry. Twenty-four hours a day, 365 days at Pacific and Atlantic Wharfs. a year, vessels sail into the terminals and In the 1960s, despite its impressive back out again to the North Sea oil and gas history of growth, Aberdeen Harbour was installations, transporting people, food, fresh still dominated by the fishing industry. The water, construction materials, tools, paint, arrival of the offshore oil and gas industry sand, chemicals, oil and medical items. changed all that. Following a successful When it comes to supplies, bunker fuel

The Geos Group Ltd is a specialist marine gasoil supplier and bunker trader, with physical supply locations in Aberdeen, Thames, Lerwick, Peterhead and Heysham.

Contact: Barry Newton The Geos Group Ltd Tel: +44 1491 845474 Email: [email protected] Web: www.geosgroup.com

bunkerspot August/September 2013 www.bunkerspot.com 55 Port Focus: Aberdeen

is one of the essentials. Most vessels typically serving the offshore industry expect a high A detailed programme is then produced for refuel on every second or third visit into level of service all year round, so we go to each day, showing which vessel will dock at port, so the ability to take on fuel and collect great lengths to ensure our fuel in tank is which berth, and for how long. On average, supplies at the same time, all on one berth, always available and of the right quality. We ships stay for around 5-6 hours, but some stay means greater efficiency and faster turnaround achieve this through a coordinated effort for much longer and some are gone in less times for operators. With this in mind, with the team at PSBS.’ than an hour. The draft of the ship is always marine gasoil supplier the Geos Group and Alan Pirie, Marine Fuels Manager a consideration for Alan when he produces logistics solutions provider Peterson SBS at PSBS, explains that coordinating the his daily programme – very large vessels must (PSBS) have formed a strategic bunkering bunkering of vessels with other logistical use a deeper berth, whereas there is more partnership at the PSBS logistics terminal on services is a daily operational challenge that flexibility with smaller ones. the north side of Aberdeen Harbour. needs careful planning: ‘Ship operators don’t Alan’s rolling seven-day forecast and daily Fuel in the Geos Group fuel tanks is like moving their vessels around while they programme change by the hour, in response used to bunker vessels at Pocra, Clipper, are in port,’ he says, ‘and they want to sail Duthies and Waterloo quays. Interconnecting again as quickly as possible. to shifts in schedules and changes in the underground pipes connect the tanks (where ‘This is why we offer a one-stop shop – weather. As the terminal is open 24 hours a the fuel is always single-sourced and never we load and discharge cargo and refuel at the day, the bunker men who fuel the ships work commingled with other grades) to quayside same time, all on one berth.’ in shifts and are often on call. connecting points, where visiting vessels are Alan and his team produce a rolling The offshore sector continues to present bunkered. seven-day forecast, based on when vessels are challenges to the logistics and bunkering Barry Newton, Managing Director of expected back in port, what fuel and supplies industries, and it will be fascinating to watch the Geos Group, also known under its trading they will need, whether a crane is needed, how Aberdeen responds to these challenges name Sea Bunkering Ltd, says: ‘Companies and how long loading is expected to take. in the years to come.

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bunkerspot August/September 2013 www.bunkerspot.com 57 Fuel Cell Technology Power boxing

roviding auxiliary hydrogen power has employed grid-based cold ironing for Hydrogen fuel cell to docked or anchored ships many years to save fuel. Ports in California technology may become Pmay soon be added to the list of are now turning to the practice to meet the ways in which hydrogen fuel cells can state’s environmental regulations. While only a real alternative to cold provide efficient, emissions-free energy, a few berths have grid-based cold ironing, according to a new study conducted ports throughout California are installing ironing. Mike Janes by Sandia National Laboratories in the infrastructure to meet California Air United States. Resources Board (CARB) regulations that and Joe Pratt discuss Hydrogen fuel cells are used to power take effect in 2014. a pioneering project mobile lighting systems, backup systems and light-duty trucks, among other applications. Complex and costly undertaken by Sandia Now, researchers at Sandia have found that But grid-based cold ironing is complex and hydrogen fuel cells may be both technically costly, and most ports lack the infrastructure National Laboratories feasible and commercially attractive as a clean, needed to meet the power needs of multiple quiet and efficient power source for ships at ships at berth. Those costs can run up to $5 berth, replacing onboard diesel generators. million-$10 million or more per berth, says The Sandia study was completed for Pratt. The Port of Oakland is installing 11 the US Department of Energy’s Office berths on six terminals at an estimated cost of of Energy Efficiency and Renewable about $70 million. Energy (EERE). In addition, switching to grid-based Auxiliary power to docked ships, usually power doesn’t eliminate emissions. Instead, provided by onboard diesel engines, is a that approach shifts the emissions to the significant source of greenhouse gas (GHG) source of electricity. Depending on the emissions and air pollution, accounting electricity source, the overall reduction in for one-third to one-half of the in-port emissions can be relatively small. emissions attributed to ocean-going vessels. The hydrogen fuel cell barge bypasses the According to a 2004 study by the Natural need for electrical infrastructure. The barge Resources Defense Council, average daily can also be moved from berth to berth as emissions for a busy port could exceed the needed and to anchorage points to power total emissions from nearly 500,000 vehicles. vessels that are waiting for berths. ‘In California, ports are already installing Evaluating fuel cell barges the necessary infrastructure for cold ironing The study evaluated a simple fuel cell strategy because of the regulations introduced a few that consisted of mounting a hydrogen- years ago,’ says Pratt. ‘So hydrogen fuel cell fuelled proton exchange membrane (PEM) auxiliary power has the opportunity for fuel cell on a floating barge. Supplying a greater impact elsewhere. While this was an container ship with average power and run times (1.4 megawatts over 48 hours) unexpected finding, we discovered other requires four 40 foot containers, two for the locations and applications for hydrogen fuel fuel cell and two for hydrogen fuel storage, cell power. which could readily fit on a typical flat-top At ports in Oregon and Washington, barge. For ships requiring less power, such as grid-based cold ironing infrastructure is tugboats, a single container housing both the limited or non-existent. Using a hydrogen fuel cell and hydrogen will suffice. fuel cell to power container ships at berth has To evaluate the feasibility of the fuel attracted interest for its potential economic cell barge strategy and analyse potential and environmental benefits, explains Pratt, deployment options, Sandia’s Joe Pratt visited and he is continuing to work with those ports ports up and down the West Coast and on quantifying the benefits and deployment in Hawaii. He gathered data from two US options. Sandia National Laboratories is a multi-programme Department of Transportation Maritime Hawaii’s Honolulu Harbor in Oahu laboratory operated by Sandia Corporation, a Administration facilities and the ports of had a different need. Much of the cargo is wholly owned subsidiary of Lockheed Martin Long Beach, Los Angeles, Oakland, Portland, unloaded and then reloaded onto barges for Corporation, for the US Department of Energy’s Tacoma, Honolulu, and Seattle. distribution to the other islands. As the barges National Nuclear Security Administration under ‘While Sandia has previously examined have no power, they carry diesel generators contract DE-AC04-94AL85000. With main facilities the potential for hydrogen and fuel cells in to provide power to shipping containers that in Albuquerque, New Mexico, and Livermore, require refrigeration, known as reefers. California, Sandia has major R&D responsibilities other applications, this is the first study of a ‘You can replace the diesel generator in national security, energy and environmental maritime environment, explains Pratt. technologies, and economic competitiveness. A common alternative to auxiliary diesel with a hydrogen fuel cell without changing engines is the practice of cold ironing in the operations. It’s just a power source in a Web: www.sandia.gov/ which a vessel at berth connects to a source box, a shipping container in this case,’ said of electricity on the shore. The US Navy Pratt. Hawaii ports aren’t facing the same

58 www.bunkerspot.com August/September 2013 bunkerspot Fuel Cell Technology

emissions regulations as California ports, but with maritime fuels using a combustion for the Hawaiian inter-island transport barge the potential savings in fuel costs is attractive engine. Subsequent analysis has shown that application. ‘A successful deployment of the for the company operating the inter-island when generators are frequently producing less containerised fuel cell on a floating platform transportation service, along with anyone than maximum power, such as in the Hawaii in a typical marine environment will be else suffering from high fuel expenses. application, the efficiency advantage of fuel useful not only in this particular service, but cells compared to the combustion engine is also because it validates the concept for the Fuel cost analysis widened. Even hydrogen at $5 per kilogram larger, containership-sized application,’ Pratt The study’s basic fuel cost analysis showed could potentially save tens of thousands of says. ‘It’s challenging on many levels but that at today’s prices hydrogen, at about $4 per dollars per year for each generator. technically feasible, with potential worldwide kilogram, with a fuel cell is cost-competitive Pratt is now developing a detailed plan commercial impact.

A ‘Q&A’ with Joe Pratt of Sandia National Laboratories

Q: What does the Sandia study show? etc. At the point when the ball has been pushed over the hill, so to speak, DOE can step aside and let industry proceed on its own. And Joe Pratt: The study shows that, first, hydrogen fuel cells can be used that’s the real goal here. at ports to help reduce the air pollution that comes from them. Second, there are specific places, both location and application, where using a Q: Why ports? fuel cell to provide power is likely to be cheaper than running diesel generators. JP: There are a couple reasons to look at ports. From an environmental standpoint, one study found that pollutant emissions from large ports Q: Aren’t fuel cells expensive? can exceed that of half a million cars per day. So addressing that problem is important. However, if we take a step back to look at the larger JP: There are two things that are happening. On one side, you have picture, I recently read there are more than 250 million vehicles in the increasingly tight standards – Tier 4 – on diesel engine exhaust that is United States, and for the world that number is approaching 1 billion. increasing cost of these engines, and you have mandates for lower and So while emissions from ports is important for those local to the ports, lower sulphur content in diesel fuel which is driving up the fuel cost. it is small compared to that from the general transportation sector. While these efforts are definitely good for the environment, they are Fuel cell vehicles are on the way but many are worried that without making it more expensive to generate power with diesel engines. a robust network of hydrogen fuelling stations that adoption will be On the other side you have more and more fuel cells being slow. At the same time, a potential hydrogen fuelling station company manufactured, for all sorts of applications, which is resulting in the is hesitant to build a station because it is having a hard time seeing the cost of the fuel cells continually coming down. So the gap between the commercial viability due to low demand – this is the classic hydrogen overall cost of diesel power versus fuel cell power is getting smaller, and vehicle chicken-and-egg conundrum. Ports can actually help here. in more and more places this gap is not only closed, but is reversing. Ports, and I’m talking both seaports and airports, are hubs of transportation of all kinds. Cars, buses, delivery trucks, semi-trucks, port Q: Why are the Department of Energy (DOE) and Sandia vehicles, ships, airplanes – all are constantly coming and going to and involved? from ports to deliver or pick up people or goods. Then throw in the wide variety of equipment used at the port (and the diesel generator JP: The DOE’s fuel cell technology office has a market transformation versus fuel cell cost factors I mentioned earlier). At a port, all of these group whose goal is to take advantage of the places where fuel cells niche, but commercially viable, applications for hydrogen fuel cells add can make financial sense in order to increase their use. Sandia is proud up and you suddenly have an financially attractive opportunity for that to be one of the labs that this group looks to in order to help with this. hydrogen fuelling station company. If they build that station and also If you have a technology that’s cleaner and saves money it seems like a make it available to the public, you’ve just added one more station to no-brainer, but the last hill a technology has to overcome on the road the fuelling station network – all done by industry because it makes to becoming a commercially successful product is going from a design business sense, not because the government is paying for it. on paper to reliable, predictable and,hopefully, boring operation. Companies know this so it’s very hard to find businesses that are Q: What’s next? willing to be the first ones to try it on their own. What DOE does through Sandia and other labs is help give that last push over this JP: What we’re working on now is developing a project plan and commercialisation hill. bringing together industry partners to build a fuel cell generator in the A template to do this that works well for Sandia is to organise a 100 kW range that will be used to supply portable electricity on the team of interested industrial partners and other stakeholders targeted at dock. This is a way from having a megawatt-class fuel cell powering a a specific technology and application, provide guidance and potentially large ship, but it’s a step-by-step process. In this case, we think this by seed funding during development and deployment of the first units, itself has potential to be a commercially viable product that can take off and give our unbiased expertise in technology areas, such as hydrogen on its own, and at the same time we tackle two important issues that and fuel cells, where the partners may not have much experience. will help inform the larger, ship-based units, namely establishing the Sandia helps the partners understand issues that arise during the first hydrogen fuelling capability and validating the fuel cell’s performance deployments for improvement of unit number two, number three, four, in the marine environment.

bunkerspot August/September 2013 www.bunkerspot.com 59 Fuel Quality Cause and effect

Michael Green of Intertek t has been well documented that the use of low sulphur fuel, whether it ‘Fuels with increased examines the rise in the Ibe residual or distillate, brings with levels of cat fines, stability it excess baggage in the form of an incidence of ‘off-spec’ low increased risk of possible quality issues. related issues and Since the implementation of MARPOL sulphur fuels Annex VI, an increase in problem contamination are being fuels has been witnessed, specifically seen on a more regular in those areas where tighter legislative requirements have been implemented. basis’ When examining test data collated from the end of 2005 up until the beginning of 2013, it is clear to see that the number of specs’ and ‘non-compliant’ test results are ‘off spec’ fuels being supplied has fluctuated common place with differing opinions being but the overriding trend has demonstrated an held in relation to what actually constitutes overall increase. a non-compliant fuel. Such concerns are It is fair to highlight the fact that periods often viewed as more of an annoyance or of legislative activity (immediately before/ an inconvenience rather than being a direct during/after a major legislative change) are operational risk to the vessel. intrinsically linked with key fluctuations in the However, this is not always the case and quality of fuel available. One prime example low sulphur fuels can, and often do, pose a of this was during the months immediately significant operational risk to vessels’ engine leading up to the implementation of the systems. North American Emission Control Area The increased number of minor ‘off (ECA) on 1 August 2012. This particular specs’ is also mirrored by an increase in legislative change saw a 3% increase in the critical issues and additional problems not number of fuels being tested that did not directly linked to the ISO 8217 remit. Fuels meet either the requirements of the ISO with increased levels of cat fines, stability 8217 marine fuel standard or the updated related issues and contamination are being legislation. seen on a more regular basis. Many of these ‘off specs’ results provide Looking specifically at figures taken little in the way of difficulty with regard from the analysis of low sulphur fuels we to the operation of the vessel and were as can see just how significant the fluctuations a result of incorrect blending procedures. in quality can be. Data taken from samples In the majority of cases where a spike in tested under the Intertek Lintec ShipCare the number of ‘off specs’ is witnessed, a submitted test programme showed 19.2% of considerable number can be attributed to all submitted samples having one or more parameters such as density, viscosity, water tested parameter to be out of specification in and, obviously, sulphur content. the fourth quarter of 2012. Arguments surrounding minor ‘off If we look at these figures in a little more

Michael Green is the Technical Manager with Intertek Lintec Shipcare Services, which offers a global submitted marine fuel-testing programme.

Contact: Michael Green Intertek Lintec Shipcare Services Tel: +44 1325 390 180 Fax: +44 1325 460 055 Email: [email protected] Web: www.lintec-group.com

bunkerspot August/September 2013 www.bunkerspot.com 61 Eitzen Chemical &Want Green to Reefers? meet Transocean,DFDS, Maersk,Carnival, Fuel Quality in association with conference 30-31 October 2013, Copenhagen

detail and simply examine low sulphur fuels issues that have not been picked up by the it was noted that, of all low sulphur fuels standard suite of ISO 8217 tests. ‘Blend stocks such as tested, around 22% were ‘off spec’. Of the ‘off Issues relating to low sulphur fuels are not spec’ samples, around 25% were as a direct limited to residuals, but instances of problems ethylene cracker residue, result of the sulphur content. with distillates fuels are not as widespread at shale oil and slurry oil Moving into Q1 of 2013, the total the current time. have been used in different Bunker supplier? Come and network numbers of ‘off specs’ rose to 19.9% of all However, the change in ECA regulations submitted samples. If we again consider low due to be implemented on 1 January 2015 parts of the world and sulphur fuels only, it was noted that 26% of will alter this trend significantly. can be detrimental to the with some of the largest fleet owners all low sulphur fuels tested were ‘off spec’ (a As demand for greater quantities of rise of 4% from the previous quarter), with distillate fuels grows, more fuels will be quality of the fuel’ almost 40% being a direct result of elevated subjected to a wider range of intense and operators in Europe sulphur content. treatment processes resulting in a decrease The introduction of a blend/cutter stock in quality. This, coupled with the added to reduce sulphur content, and the blending concern of availability – not in relation to process conducted, have a significant bearing physical quantities, but in relation to stocks in Hear the latest on: on the quality of the final product. However, all ports – suggests that the focus will move it is not simply the blending process that can away from the residual market. lead to problems; it is also the nature of the • Fleet owners’ strategies post 2015 Conversely, the proposed change in 2015 blend/cutter stock that is utilised. In many should prove to something of a watershed for • Staying compliant with EU regulations cases it is the actual blend stock itself that residual fuel, with an upturn in the quality can directly contribute to some of the issues • Scenario Planning: which fuel options will have the most of product available. The change in ECA noted. impact on your bunkering options? Blend stocks such as ethylene cracker legislation will mean that the demand for 1.00% sulphur fuel will plummet overnight. • Quality control: how can you ensure product quality? residue, shale oil and slurry oil have all been known to be used in different parts of the As a result residual fuels will be subjected • Security of supply: will refinery capacity meet demand? world and in many cases can be detrimental to fewer blending process, which means a to the quality of the fuel. reduction in the use of cutter stocks, which Increased levels of catalytic fines have been in turn will lead to a reduction in quality witnessed in fuels as a result of the use slurry issues associated with blending. Reserve your place today, oil. Instances of poor stability have also been Although the move to distillate fuel will noted as a result of blending with ethylene mean a reduction in volumes of residual please contact Steve Edwards: cracker residue and shale oil. In many cases fuel available, it will also prompt owners/ operators to consider future changes and e: [email protected] these blend stocks can be identified by the presence of certain chemicals at low levels. how they will achieve compliance. The t: +44 20 8370 1711 The presence of these chemicals alone prospect of an increased quality product at a may not have a detrimental effect on the lower cost, compared to distillate fuels, could operation of the vessel due to their low be the springboard many owners need to concentrations, but do provide a good marker consider the application of a scrubber unit to for identification of possible underlying meet their future needs.

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www.marinefuelsandlubricants.com bunkerspot August/September 2013 www.bunkerspot.com 63

FMF&L13_fp.indd 2 05/08/2013 10:45 Networking

79 171 7612; Email: [email protected]. Dynamic Oil Trading (Singapore) Pte Ltd has On the move... appointed Mona Liu as a bunker trader. Tel: Island Oil has appointed Virgine Lafage as +65 6437 5516; Mob: +65 8458 8924; Email: a bunker trader in its new liaison office at 17 [email protected]. Europe rue Hôtel des Postes, 06000 Nice, France. Tel: +33 4221 60079; Mob: +33 6354 96715; OW Bunker China Ltd has appointed Eric After five years at KPI Bridge Oil, Mark Perrins Email: [email protected]. Hu, formerly of BP and Brightoil, as a new has been promoted to team leader at its Office Manager in Hong Kong. Tel: +852 3758 London office. Tel: +44 773 930 8848; Email: Greek bunker supplier Termoil has relocated to 0593; Mob: +852 9254 1157; Email: erhu@ [email protected]. Vouliagmenis Avenue 164, 166 74 Glyfada. All owbunker.com.hk. Andrew Lee, previously at phone, email and fax lines remain unchanged. Anglo-Eastern Ship Management and Noble LQM Petroleum Services, Inc. has relocated Chartering Ltd, has also joined as a bunker Ahmet Çağatay, previously General Manager its UK office to The Wagon Barn, Smithbrook trader. Tel: +852 3758 0591; Mob: +852 9426 of Bunker International’s Turkish office, has Barns, Horsham Road, Cranleigh, Surrey GU6 5818; Email: [email protected]. 8LH. Tel: +44 1403 289060; Fax: +44 1403 launched a new bunker firm, Bunkerist Trading and Brokering, based at Şemsettin 289066. The International Bunker Industry Association Günaltay Cad. Ortayol. Sok İskenderoğlu, Apt. has moved its Singapore office to 51 Anson No:14/10 34744 Bostancı, Kadıköy, Istanbul, Jens Maul Jørgensen of Oldendorff Carriers Road, Anson Centre #08-59, Singapore Turkey. Tel: +90 216 455 4440; Mob: +90 532 has been appointed Vice Chairman of the 079904. Tel: +65 64720 916; Fax: +65 64720 246 2939; Email: [email protected]. International Bunker Industry Association 919. (IBIA) and will take over from Simon Neo as Chairman in April 2014. Dilip Mody of Global Mideast & Africa John Phillips has resigned as Managing Fuels & Lubricants has been reappointed as Director of Singapore-based marine credit IBIA’s Honorary Treasurer. Christoffer Berg Lassen has been appointed analyst company Ocean Intelligence and as a board member of parent company, the Murray Bishop has been appointed Business CEO of International Bunkering Group in Petromedia Group. Jacqueline Phillips has Development Manager for Europe, the Dubai. Tel: +971 4 437 1700; Email:cbi@ also resigned her position as Senior Analyst, Americas and Africa at GAC Bunker Fuels ibmeast.com. to become a tanker market analyst for in London. Tel: +44 1753 671671; Mob: +44 Braemar Seascope. Tel: +65 6579 1088; Mob: 7792 691 831; Email: [email protected]. Asia Pacific +65 9270 7100; Fax: +65 6533 1632; Email: Can Ertem has joined credit reporting agency [email protected]. Chandan Prasad Samaivar has been Ocean Intelligence in the UK as Managing appointed Country Head of the Mumbai, India Analyst EMEA. Tel: +44 1753 410 940; Email: office of International Bunkering Middle East [email protected]. Americas DMCC. Tel: +91 22 6187 0000; Mob: +91 KPI Bridge Oil has appointed former employee Rune Andreasen has been appointed 88799 76461; Email: [email protected]. Jordan Felber as a bunker trader and broker sales manager in A/S Dan-Bunkering Ltd’s Raymond Kong has resigned as Managing Copenhagen office. Tel: +45 3345 5410; in its New York Office. Tel: +1 732 788 7002; Director of Bomin Bunker Oil Pte Ltd in Direct: +45 3345 5432; Mob: +45 2024 Email: [email protected]. Singapore and stepped down from his position 5429; Fax: +45 3345 5411; Email: rua@dan- as Director of Bomin’s Hong Kong office. Thomas Linville has joined Bunkers bunkering.com. Michael Matem Hedager has International as a fuel trader in Central Florida. been appointed senior bunker trader. Direct: Lars Döring, until recently bunker manager Tel: +1 407 328 7757; Mob: +1 407 864 4490; +45 3345 5417; Mob: +45 5180 2289; E-mail: of Bomin Deutschland GmbH and, as Team Fax: +1 407 328 0045; Email: tlinville@ [email protected]. Michel Dominique Leader Europe, also responsible for the bunkersintl.com. Thomsen has returned to the company as development of Bomin International Trading, senior bunker trader and team leader after has been appointed Managing Director of Matrix Marine Fuels and Bominflot Bunker Oil three years in a bunker company in South Bomin Bunker Oil Pte Ltd in Singapore. Tel: Corp. have relocated to Three Allen Center, America. Direct: +45 3345 5443; Mob: +45 +65 6305 8000; Fax +65 6305 7882; Email: 333 Clay Street, Suite 2400, Houston, Texas 4076 8482; Email: [email protected]. [email protected]. 77002, United States. All business email addresses, telephone and fax numbers remain A/S Dan-Bunkering Ltd has appointed Carsten Susanna Lai has been appointed Managing the same. Meanwhile, Bominflot Bunker Ladekjær, recently CEO of International Director of Bomin Bunker Oil Ltd in Hong Oil Corp. has changed its name to Bomin Bunkering in Dubai, as its new Asia/Europe Kong, responsible for Hong Kong and Bomin’ Bunker Oil Corp., bringing it into line with the head of operations, based in Middelfart, representative office in Shanghai. Tel: +852 rebranding of the Bomin Group worldwide. Denmark. Tel: +45 6441 5401; Fax: +45 2891 7799; Mob: +852 9226 3301; Email: Bominflot Inc. and Bominflot Atlantic LLC will 6441 5301; Email: [email protected]. [email protected]. Kasper Rosenberg has joined as a bunker also reflect this change. trader. Direct: +45 6421 5416; Mob: +45 6037 After working in the Copenhagen office for six Bob Lintott, veteran of Bominflot and ISO 3959; Email: [email protected]. Søren years, Thieu-vi Phung has relocated to Dan- Industries and former Chairman of the Emil Dam has also joined as a bunker trader. Bunkering’s Singapore office. Tel: +65 6572 International Bunker Industry Association Direct: +45 6421 5412; Mob: +6037 5417; 4317; Mob: +65 9821 1981; Email: thp@dan- Email: [email protected]. bunkering.com. (IBIA), has re-established his bunker broking business, Lintott Marine, at 1000 Lafitte Netherlands supplier Argos Bunkering has Scandinavian Bunkering has appointed Street, Mandeville, Louisiana 70448, United hired Davy Van Den Tempel as a junior Ho Ting Teck as Managing Director of its States. Tel: +1 504 400 4001; Email: blintott@ bunker trader. Tel: +31 8810 07681; Mob: +31 Singapore branch. Tel: +65 6220 7337; msn.com. 6539 36003; Email: davy.van.den.tempel@ Fax: +65 6220 7227; Email: scanb@scanb. argosenergies.com. com.sg. A new bunkering operation, Atlantic Gulf Bunkering LLC, has been established in Chris Stoddard, formerly of Chemoil and Clarence Chang, previously at Brightoil, has Mobile, Alabama. Kirk Callais is Sales Noble, has been appointed strategic marketing been appointed General Manager of OW Manager. Tel: +1 251 253 3812; Email: kirk@ manager of marine fuels in Cargill’s Energy, Bunker Far East (Singapore) Pte Ltd. Tel: +65 agbllc.com. Sammy Carroll is Operations Transportation and Metals division in Geneva, 6317 0002; Mob: +65 9008 4457; Fax: +65 Manager. Tel: +1 251 253 4527; Email: sam@ Switzerland. Tel: +41 22 703 2815; Mob: +41 6398 1270; Email: [email protected]. agbllc.com; Fax: +1 251 217 0500.

64 www.bunkerspot.com August/September 2013 bunkerspot Events

Web: www.tocevents-americas.com Tel: +44 20 8364 1551 Email: [email protected] NETHERLANDS: ARACON Web: www.rivieramm.com Events Diary 2-4 October, Rotterdam Contact: The Petrospot Events Team NOVEMBER SEPTEMBER Tel: +44 1295 814 455 Email: [email protected] HONG KONG: Commercial Practice in UNITED KINGDOM: London International Web: www.petrospot.com Bunkering Shipping Week 4-5 November, Hong Kong 9-13 September, London INDIA: INMEX Contact: The Petrospot Events Team Contact: Shipping Innovation, a joint venture 8-10 October, Mumbai Tel: +44 1295 814 455 between Petrospot and Elaborate Contact: Informa Email: [email protected] Tel: +44 1295 81 44 55 /+44 1296 682 051 Tel: +91 22 4048 1704 Web: www.petrospot.com/hongkong/cpb Email: [email protected] Email: [email protected] Web: www.londoninternationalshippingweek.com Web: www.inmexindia.com HONG KONG: IBIA Annual Convention 2013 5-7 November, Hong Kong CHINA: 6th Asia LNG Forum GERMANY: Intermodal Europe Contact: Anna Trant 11-12 September, Shanghai 8-10 October, Hamburg Tel: +44 203 397 3850 Contact: Yvonne Dai, CBI China Contact: Sophie Ahmed Email: [email protected] Tel: +86 21 5155 0719 Tel: +44 207 017 5112 Web: www.ibia.net Email: [email protected] Email: [email protected] Web: www.events.cbichina.com Web: www.intermodal-events.com HONG KONG: Bunkerspot LNG 8 November, Hong Kong SCANDINAVIA: Gas Fuelled Ships Conference BELGIUM: GreenPort Congress Contact: The Petrospot Events Team 11-12 September, Stockholm-Turku 9-11 October, Antwerp Tel: +44 1295 814 455 Contact: Mercator Media Contact: Mercator Media Ltd Email: [email protected] Tel: +44 1329 825335 Tel: +44 1329 825335 Web: www.petrospot.com/hongkong/lng Email: [email protected] Email: [email protected] Web: www.motorship.com/gfsconference Web: www.greenportasia.com BELGIUM: The 8th European Conference & Exhibition on Inland Terminals UNITED KINGDOM: The Oxford Bunker Course UNITED STATES: The Oxford Bunker Course 21-22 November, Liege 16-20 September, Oxford 21-23 October, Houston Web: www.inlandterminals.com Contact: The Petrospot Events Team Contact: The Petrospot Events Team Tel: +44 1295 814 455 Tel: +44 1295 814 455 SOUTH AFRICA: Intermodal Africa South Email: [email protected] Email: [email protected] 21-22 November, Port Elizabeth Web: www.petrospot.com/oxford Web: www.petrospot.com/houston/oxford Contact: Transport Events Management CANADA: Crude Markets and Rail Takeaway Tel: +60 87 426 022 NETHERLANDS: LNG Fuel Forum Email: [email protected] Summit 22-23 October Web: www.transportevents.com 17-19 September, Calgary Contact: Informa Maritime Events Contact: Tel: +44 2070 175 510 UNITED ARAB EMIRATES: Turkish Maritime Canadian Business Conferences Email: [email protected] Forum Tel: +1 800 721 3915 Web: www.informamaritimeevents.com 26 November, Istanbul Email: [email protected] Contact: Seatrade Web: www.canadian-business-conferences.com UNITED STATES: Bunkerspot LNG Tel: +44 1206 545 121 24 October, Houston Web: www.turkishshippingsummit.com UNITED STATES: HHP Summit Contact: The Petrospot Events Team 17-19 September, Chicago Tel: +44 1295 814 455 DECEMBER Contact: Gladstein, Neandross & Associates Email: [email protected] Web: www.hhpinsight.com Web: www.petrospot.com/houston/lng SINGAPORE: Bunkering in China 2-4 December, Singapore SINGAPORE: 8th Ballast Water Management INDIA: India Shipping Summit 18-19 September, Singapore Contact: IBC Asia 22-24 October, Mumbai Tel: +65 6508 2401 Contact: Mohammad Ahsan Contact: Trevor Pereira, Seatrade Tel: +44 203 141 0606 Email: [email protected] Tel: +971 4324 5344 Web: www.ibc-asia.com Email: [email protected] Email: [email protected] Web: www.wplgroup.com/aci/conferences CHINA: Marintec China INDIA: Southern Asia Ports, Logistics and GERMANY: Ship Efficiency 3-6 December, Shanghai 23-24 September, Hamburg Shipping Contact: UBM Asia Ltd Contact: Schiffbautechnische Gesellschaft e.V. 23-24 October, Mumbai Tel: +852 2827 6211 Tel: +49 40 690 49 10 Contact: Transport Events Management Email: [email protected] Email: [email protected] Tel: +60 87 426 022 Web: www.marintecchina.com Web: www.ship-efficiency.org Email: [email protected] Web: www.transportevents.com UNITED ARAB EMIRATES: TOC Container UNITED ARAB EMIRATES: RESCON 2013 Supply Chain: Middle East 23-25 September, Dubai SOUTH KOREA: LNG Bunkering Korea 9-11 December, Dubai Contact: Arshed Hussain, IIR Holdings Limited 28-31 October, Seoul Contact: TOC Events Tel: +971 4 407 2715 Contact: IBC Asia Tel: +44 20 7017 4394 Email: [email protected] Tel: +65 6508 2401 Web: www.tocevents-me.com Email: [email protected] UNITED ARAB EMIRATES: Seatrade Middle Web: www.lngbunkeringkorea.com UNITED KINGDOM: 6th Optimising Port East Workboats & Marine Offshore Development 30 September-2 October, Abu Dhabi DENMARK: Seatrade Tanker Industry 4-5 December, London Contact: Seatrade Conference Contact: Justyna Korfanty Tel: +44 1206 545 121 29 October, Copenhagen Tel: +44 207 981 2503 Web: www.middleeastworkboats.com Contact: Seatrade Email: [email protected] Tel: +44 1206 545 121 Web: www.wplgroup.com OCTOBER Email: [email protected] Web: www.tankerconference.com SINGAPORE: Tank Storage Asia UNITED STATES: TOC Container Supply 10-11 December, Singapore Chain: Americas DENMARK: Future Marine Fuels & Lubes Contact: 1-3 October, Miami Conference Tel: +44 20 8843 8800 Contact: TOC Events 30-31 October, Copenhagen Email: [email protected] Tel: +44 20 7017 4394 Contact: Riviera Maritime Media Ltd Web: www.tankstorageasia.com

66 www.bunkerspot.com August/September 2013 bunkerspot