MARITIME LNG regulatory update “Best fuel of the future”, conference & study tour 10 April 2018 [email protected] 1 DNV GL © 2017 01 April 2018 SAFER, SMARTER, GREENER SUPPLY: Brief status on uptake of LNG as fuel 2 DNV GL © 2017 01 April 2018 additional additional LNG ready ships There are currently confirmed LNG247 fuelled ships, and 110 3 Cap 2020 Cap Sulphurbig wildcard: The 2020 in reached be to probably 500 DNV GL © 2017 01 April 2018 15 21 25 35 46 56 76 14 97 35 Excluding LNG carriers and inland waterway vessels 119 54 121 51 68 121 88 87 121 105 98 121 117 110 Updated 1 April2018 121 122 110 121 124 110 121 126 110 121 126 110 121 126 110 Area of operation of LNG fuelled vessels Operating area of the 121 ships in operation Operating area of the 126 ships on order 2 15 22 38 14 7 1 57 61 14 7 9 Updated 1 April 2018 Excluding LNG carriers and inland waterway vessels 4 DNV GL © 2017 01 April 2018 AIS data from LNGi shows that LNG fuelled ships are already covering a large area The heat map is based on the LNG fuelled fleet’s AIS positions from 01.01.2018-11.01.2018 5 DNV GL © 2017 01 April 2018 LNG uptake segmentby vessel 6 DNV GL © 2017 3 2 2 2 01 April 2018 33 14 3 21 17 18 5 1 11 9 34 Excluding LNG carriers and inland waterway vessels 21 4 4 3 2 Updated 1 April2018 5 9 4 14 10 5 126 confirmed LNG fuelled newbuilds (1/3) Confirmed orderbook Year Type of vessel Owner Class Year Type of vessel Owner Class 2018 Tug Drydocks World Tasneef 2018 Container ship Brodosplit DNV GL 2018 Hopper Barge Bremenports DNV GL 2018 Car/passenger ferry Royal Doeksen LR 2018 PSV Harvey Gulf Int. ABS 2018 Car/passenger ferry Royal Doeksen LR 2018 Cable layer DEME Tideway DNV GL 2018 Car/passenger ferry CHFS LR 2018 RoPax Rederi AB Gotland DNV GL 2018 Car/passenger ferry CHFS LR 2018 Container ship Crowley Maritime Corp. DNV GL 2018 RoPax Rederi AB Gotland DNV GL 2018 Container ship Brodosplit DNV GL 2018 Container ship Containerships ABS 2018 Container ship Brodosplit DNV GL 2018 Container ship Containerships ABS 2018 Bulk ship ESL Shipping DNV GL 2018 Container ship GNS Shipping ABS 2018 Bulk ship ESL Shipping DNV GL 2018 Container ship GNS Shipping ABS 2018 Car/passenger ferry Society of Quebec ferries LR 2018 Heavy lift vessel Heerema Offshore LR 2018 Car/passenger ferry Society of Quebec ferries LR 2018 Oil/chemical tanker Furetank Rederi BV 2018 PSV Siem Offshore DNV GL 2018 Oil/chemical tanker Furetank Rederi BV 2018 PSV Siem Offshore DNV GL 2018 Oil/chemical tanker Furetank Rederi BV 2018* HSLC Fred. Olsen DNV GL 2018 Dredger DEME BV 2018* Car/passenger ferry BC ferries ABS 2018 Dredger van der Kamp DNV GL 2018 Car/passenger ferry Caronte & Tourist RINA 2018 Oil/chemical tanker Thun Tankers 2018 Oil/chemical tanker Groupe Desgagnés BV 2018 Oil/chemical tanker SCF DNV GL 2018 Oil/chemical tanker Groupe Desgagnés BV 2018 Oil/chemical tanker SCF DNV GL 2018 Container ship Crowley Maritime Corp. DNV GL 2018 Car/passenger ferry Torghatten DNV GL 2018 Tug Keppel Smit Towage ABS 2018 Bunker ship Harley Marine Services 2018 Tug Maju Maritime ABS 2018 Bunker ship Harley Marine Services 2018* Car/passenger ferry BC ferries ABS 2018 PSV Harvey Gulf Int. ABS 2018 Container ship Brodosplit DNV GL Updated 1 April 2018 * Conversion project Excluding LNG carriers and inland waterway vessels 7 DNV GL © 2017 01 April 2018 126 confirmed LNG fuelled newbuilds (2/3) Confirmed orderbook Year Type of vessel Owner Class Year Type of vessel Owner Class 2018 Bunker ship Sinanju Tankers 2019 Emergency response ship German Transport Ministry 2018 Reefer SeOil Agency/Gas Entec 2019 RoPax Brittany Ferries BV 2018 Car/passenger ferry Torghatten DNV GL 2019 RoPax Baleària 2018 Car/passenger ferry Torghatten DNV GL 2019 RoPax Baleària 2018 Car/passenger ferry Torghatten DNV GL 2019 Shuttle tanker AET DNV GL 2018* Dredger Dragages-Ports BV 2019 Shuttle tanker AET DNV GL 2019 Car/passenger ferry Torghatten DNV GL 2019 RoPax Polish Baltic Shipping Co 2019 Oil/chemical tanker Thun Tankers BV 2019 RoPax Polish Baltic Shipping Co 2019 Oil/chemical tanker Thun Tankers BV 2019 Shuttle tanker Teekay Offshore DNV GL 2019 Oil/chemical tanker Thun Tankers BV 2019 Container Ship CMA CGM BV 2019 Oil/chemical tanker SCF DNV GL 2019 Oil/chemical tanker Älvtank BV 2019 Oil/chemical tanker SCF DNV GL 2019 Oil/chemical tanker Älvtank BV 2019 Oil/chemical tanker SCF DNV GL 2019 Tug PSA Marine 2019 Oil/chemical tanker SCF DNV GL 2019 Dredger Dragages Ports 2019 Oil/chemical tanker AET ABS 2019 Fishing vessel Liegruppen 2019 Oil/chemical tanker AET ABS 2020 Wellboat Nordlaks 2019 Tug Mitsui O.S.K. Lines 2020 Container Ship CMA CGM BV 2019 Cruise ship Carnival Corporation RINA 2020 Container Ship CMA CGM BV 2019 Cruise ship Carnival Corporation RINA 2020 Container Ship CMA CGM BV 2019 Oil/chemical tanker Thun Tankers BV 2020 Container Ship CMA CGM BV 2019 Offshore installation ship DEME DNV GL 2020 Container Ship CMA CGM BV 2019 Dredger DEME BV 2020 Shuttle tanker Teekay Offshore DNV GL 2019 RoPax Baleària BV 2020 Shuttle tanker Teekay Offshore DNV GL 2019 Car carrier Siem Car Carriers ABS 2020 Shuttle tanker Teekay Offshore DNV GL 2019 Car carrier Siem Car Carriers ABS 2020 Container ship Pasha Hawaii 2019 Emergency response ship German Transport Ministry 2020 Container ship Pasha Hawaii Updated 1 April 2018 * Conversion project Excluding LNG carriers and inland waterway vessels 8 DNV GL © 2017 01 April 2018 126 confirmed LNG fuelled newbuilds (3/3) Confirmed orderbook Year Type of vessel Owner Class Year Type of vessel Owner Class 2020 Research ship German Transport Ministry 2020 RoPax Viking Line DNV GL 2020 Cruise ship Carnival Corporation RINA 2020 Cruise ship Carnival Corporation RINA 2020 Container Ship CMA CGM BV 2020 Container Ship CMA CGM BV 2021 Container Ship CMA CGM BV 2021 Oil/chemical tanker Rosneft RR 2021 Oil/chemical tanker Rosneft RR 2021 Oil/chemical tanker Rosneft RR 2021 Oil/chemical tanker Rosneft RR 2021 Oil/chemical tanker Rosneft RR 2021* Ro-Ro TOTE Shipholdings ABS 2021* Ro-Ro TOTE Shipholdings ABS 2021 Cruise ship Carnival Corporation RINA 2021 Cruise ship Carnival Corporation 2021 Cruise ship Disney Cruise Lines 2021 Cruise Ship Ponant BV 2022 Cruise ship Carnival Corporation RINA 2022 Cruise ship MSC Cruises 2022 Cruise ship RCCL DNV GL 2022 Cruise ship Disney Cruise Lines 2022 Cruise ship Carnival Corporation 2023 Cruise ship Disney Cruise Lines 2023 Cruise ship Carnival Corporation 2024 Cruise ship RCCL DNV GL 2024 Cruise ship MSC Cruises Updated 1 April 2018 * Conversion project Excluding LNG carriers and inland waterway vessels 9 DNV GL © 2017 01 April 2018 Dual Fuel is the preferred option Gas engine technology - ships on order 21% DF 2% Gas Unknown 78% Updated 1 April 2018 Excluding LNG carriers and inland waterway vessels 10 DNV GL © 2017 01 April 2018 DEMAND Uptake of scrubbers 11 DNV GL © 2017 01 April 2018 Investments in scrubbers are higher in total numbers but LNG fuel is the most frequent choice for newbuilds Scrubber retrofit is the “main competitor” to LNG *Number of ships are shown. Number of scrubber units are higher. Updated 1 April 2018 Excluding LNG carriers and inland waterway vessels 12 DNV GL © 2017 01 April 2018 13 in (already operation or contract signed) There are currently scrubbersships with confirmed 437 DNV GL © 2017 *Number of ships ships of *Number are shown. scrubber of Number units are higher. 2000 scrubbers by 2020 by scrubbers 2000 some count estimates Some 01 April 2018 31 88 212 284 Excluding LNG carriers and inland waterway vessels 332 384 429 435 Updated 1 April2018 436 437 SUPPLY LNG bunkering infrastructure 14 DNV GL © 2017 01 April 2018 67 LNG supply locations for ships worldwide today, and many more decided and planned* 67 38 26 *There may be several bunkering facilities/modes for one location. The count includes local storages, bunker ship loading facilities and truck loading facilities. Locations where LNG fuelled ships can be bunkered by truck or by ship is not counted. Updated 1 April 2018 15 DNV GL © 2017 01 April 2018 The majority of LNG supply locations for ships are in Europe* 26 12 4 6 2 6 26 15 6 13 2 5 4 4 *There may be several bunkering facilities/modes for one location. The count includes local storages, bunker ship loading facilities and truck loading facilities. Locations where LNG fuelled ships can be bunkered by truck or by ship is not counted. Updated 1 April 2018 16 DNV GL © 2017 01 April 2018 All types of LNG supply facilities are being developed* 29 14 22 20 12 16 8 9 47 43 29 14 2 5 3 Bunker Ship Loading Facility *Some locations have several types of facilities, which is why the number of facilities is higher than the number of locations. • Local storage – An intermediary LNG storage • Tank to ship bunkering – A local storage where an LNG fuelled ship can bunker directly from shore • Truck loading facility – A terminal where LNG trucks can load LNG (probably under-estimated) • Bunker Ship loading facility – LNG terminal accessible by small LNG carriers Updated 1 April 2018 17 DNV GL © 2017 01 April 2018 LNGi shows a clutter of LNG bunker vessels coming in Europe *In the LNGi map bunkering barges for inland waterway vessels are also shown, but these projects are not shown here.