AnnualGeneral Report Manager’s and Accounts Report 2016 SIGTTO Society for International Gas Tanker and Terminal Operators Ltd Continually promoting best practice in the liquefied gas shipping and terminal industries for 38 years SIGTTO Annual Report Annual SIGTTO and Accounts 2016 1 SIGTTO Purpose SIGTTO has been organised to encourage the safe and responsible operation of liquefied gas tankers and marine terminals handling liquefied gas; to develop advice and guidance for best industrial practice among its members; and to promote criteria for best practice to all who have responsibilities for, or interest in, the safety of gas tankers and terminals. SIGTTO 2020 Vision (Where the Society wishes to see itself in 2020, according to its Strategic Plan) SIGTTO will be recognised as the foremost gas shipping and terminal industry body - a modern centre of industry expertise - with all appropriate resources available to address industry technical and operational issues. It will be the industry advocate for the proactive enhancement of safe and sustainable international gas terminal and shipping operations through the provision of consistent guidelines and measures. Contents SIGTTO Annual Report 2016 Contents 5 President’s report 15 SIGTTO Secretariat 30 Hot off the presses David Furnival presents The Society’s Secretariat Review of latest industry an overview of outstanding office staff best practice publications progress in a notable year from SIGTTO 16 SIGTTO committees 7 General Manager’s report and subcommittees 30 Publications list Andrew Clifton looks Internal restructuring to Paid publications back on notable SIGTTO accommodate available from SIGTTO developments in 2016 Strategic Plan 2016 33 Financials 8 SIGTTO members 18 Industry regulations Statement of Comprehensive Full and Associate Members and standards Income for the year as of 31 December 2016 SIGTTO participation ended 31 December 2016 in the evolving regulatory 9 Benefits of SIGTTO regime governing gas ships 35 Inside Back Cover membership Photo credits Listing of the advantages that 22 The industry year in review Society membership can bring Gas shipping and terminal 2016 timeline 11 SIGTTO in figures A statistical review of 26 SIGTTO’s widening remit SIGTTO’s membership Work programme extended and accomplishments to compressed natural gas carriers, ISO tank containers 12 SIGTTO history and liquefied hydrogen carriers The evolution of SIGTTO since its formation in 1979 28 Panel Meetings and Regional Forums 14 SIGTTO directors Busy SIGTTO meeting schedule facilitates two-way dialogue SIGTTO directors and their companies, as of 31 December 2016 SIGTTO Annual Report Annual SIGTTO and Accounts 2016 3 SIGTTO Annual Report Annual SIGTTO and Accounts 2016 Very large gas carrier traffic at the Enterprise terminal in Houston, the world’s busiest LPG loading facility 4 President’s Report SIGTTO Strategic Plan implementation well underway I am honoured to present SIGTTO’s 2016 annual report, following my appointment as President of the Society in November 2016, a personal 40-year career pinnacle. Under the effective leadership of publications have been delivered in both the gas terminal community General Manager Andrew Clifton, the last 30 months and there are two and the LPG and chemical gases SIGTTO has made strong and steady more scheduled for publication in sectors. As is the case with LNG, progress over the past 12 months the next 12 months, a clear indication activity in the LPG and chemical towards delivering the objectives of an improving productivity. gas industries is currently growing laid down in the Society’s new strongly. Increased participation from Safety and accident prevention are at Strategic Plan. The completed all parties will help ensure that the the forefront of SIGTTO’s focus. With document was approved at the Society is fully representative of the this in mind, the adoption of modern risk Autumn Board and Annual General entire liquefied gas value chain. assessment and mitigation techniques Meeting in November 2015. such as the “bow-tie” tool is a welcome As the use of LNG as a marine fuel The goals laid down in the Plan, development, as is the formation of gains more traction, with 105 LNG- which covers the five-year period our new Human Element Committee fuelled ships in operation and another up to 2020, includes a strengthened (HEC). Human error in one form or 75 on order, the excellent work of our Secretariat with the competencies other remains a causal factor in many sister organisation, the Society for and resources necessary to meet accidents and it is imperative that Gas as Marine Fuel (SGMF), warrants the challenges of supporting safety we learn more about the underlying appreciation. In the short time since its and operational integrity in an reasons behind accidents and near inception and with limited resources ever-growing and diversifying gas misses in order to develop more SGMF’s General Manager and Directors terminals and shipping sector. effective preventative measures. have gained genuine credibility and have a broad-based membership As part of the drive Ian Harrison has The new, fourth edition of the Society’s of 113. With seven working groups been appointed to join the Secretariat flagship publication,Liquefied Gas established and six publications staff as a full-time IMO representative. Handling Principles (LGHP4), has already issued, their output has been This new role requires that rare proven to be something of a best- impressive. SIGTTO remains committed combination of technical and political seller in the year since its release. This to providing ongoing support to SGMF. acumen so necessary to effectively is welcome news on two counts – the promote the Society’s strategies at royalties provide a revenue stream In closing, it is with great sadness international governmental level. A that underpins the financial security that I report the passing of SIGTTO look at his CV reveals that Ian is well- of the organisation and, even more Director Faisal Ismail on 29 June 2017 qualified to deliver what is needed. importantly, its popularity across a at the age of 56. Faisal, a former Vice broad spectrum of readers indicates President of LNG at MISC and the Ian’s appointment is enabling SIGTTO’s that there is a significant appetite in our Chief Executive of Petronas Maritime Technical Advisers to focus on new industry to be properly informed on Services, was a well-respected member projects and publications. The scope how to handle liquefied gases safely. of the Board whose considered of guidelines on safe operations will be contribution to the Society’s direction expanded to include new areas such as The strong focus on engagement with and governance will be greatly missed. compressed natural gas (CNG) carriers members is paying dividends with a and LNG transported in ISO tank continually growing membership base On behalf of my colleagues at containers. SIGTTO’s widening remit in that now stands at over 220, including SIGTTO, I would like to express our this respect is described on page 26. 184 full and associate members, located sincere condolences to Faisal’s family and friends at this time of loss. in 55 countries. SIGTTO’s Regional Report Annual SIGTTO In parallel to the initiative to increase Forums are proving to be particularly and Accounts 2016 staff resources, SIGTTO is adopting a popular, with the September 2016 more systematic approach towards South American event in Buenos Aires improving process structure and hosting a record 110 participants. efficiency. As a result good progress has been made to reduce the backlog Additional efforts are being made David Furnival of projects sanctioned by the General to attract to the membership a SIGTTO President Purposes Committee (GPC). Five paid greater proportion of operators from July 2017 5 SIGTTO Annual Report Annual SIGTTO and Accounts 2016 Many import terminals are being called upon to play additional roles, including handling cargo reloads and transfers to conventional-size and small-scale vessels 6 General Manager’s Report SIGTTO enjoyed another busy and eventful year in 2016 During the year 13 new members joined SIGTTO and 11 resigned. As of 31 December 2016 we had a total of 184 full and associate members. The SIGTTO directors met three as appropriate, and over the years has in Perth in April 2016 and one of the times during the year, as per the written/co-sponsored submissions highlights was the shipping session Society’s byelaws. The spring to IMO on various matters related to which I had the opportunity to chair. board meeting, kindly hosted by the LNG/LPG sector of the maritime As LNG shipping embarks on its second Engie, was held in Boston while the industry. A principal focus for us in half century, it is important that the autumn board and annual general recent years has been the revision of the very proud safety record established meetings took place in Nagoya International Code for the Construction by our industry is not forgotten. As where Chubu Electric was the host. and Equipment of Ships Carrying the industry leader for disseminating Liquefied Gases in Bulk (IGC Code) and The Society is registered in Bermuda best practice procedures and providing the drafting of the new International as a “not-for-profit” entity. We are technical support for companies Code of Safety for Ships using Gases or allowed to retain any surplus as active in liquefied gas shipping and other Low-Flashpoint Fuels (IGF Code). reserves and each year we set the terminals, SIGTTO is at the forefront budget to generate a small surplus SIGTTO’s Secretariat maintains close of maintaining this safety record. which goes to reserves. The reserve contacts with other NGOs, principally It incumbent on SIGTTO to adapt to meet level we target is about one year’s the Oil Companies International Marine ever-changing industry requirements operating costs and we are comfortably Forum (OCIMF), the International and to ensure that the Society remains in excess of this target.