28º Congresso Internacional deTransporte Aquaviário, Construção Naval e Offshore Rio de Janeiro/RJ, 19-21 de outubro de 2020 Marine LNG Market in Argentina Ing. Raúl Podetti, Asoc. Argentina de Ingeniería Naval, Buenos Aires, Argentina, [email protected] Ing. Carlos Casares, Instituto Argentino de Petróleo y Gas, [email protected] Summary Adding up the complementary experience of both authors (Casares in Gas Industry and Podetti in Marine Industry) it is presented here a summary of their work-in-progress research available at www.industrianaval.com.ar, as part of the “Shipbuilding Collection”. The paper is structured into five parts with respect to Marine LNG in Argentina: Global Context, Demand, Supply, Volumes and Investments. “Global Context” provides an international overview of the marine use of LNG and a few local cases. “Demand” starts by identifying the present volume of Marine Diesel and Fuel oils demanded by type traffic, ship and market at main ports. This data, along with other information is used to estimate potential and projected demand that is presented in a Marine LNG Demand Map. “Supply” part defines the concept of a Marine LNG Virtual Gas Pipeline, combining trucks and barges to access ports and areas of NEA, Paraguay and Brazil, presenting the corresponding Supply Map. “Volumes and Investment” final chapters quantify these requirements by port and demand market, developing a detailed numerical analysis for the NEA case from the Resistencia Node of this newly defined supply network. 1. Introduction The use of LNG is probably the Most iMportant to the uncertainty of LNG breakthrough in Marine propulsion since the availability at all ports in transition froM coal fuel boilers to diesel engines in their changing routes. early years of past century. Other local markets for LNG In this case, the global change is driven by: are fishing vessels, port - environMental growing concerns tugs, dredges and pushers - econoMic benefits used in the waterway. This - new discoveries of large gas reserves, and last Market is connected to - advances in technology both in Marine another large demand for engines as well as in the liquefaction and (residential and industrial) storage of natural gas. LNG in North East area of Argentina, and in Even though there are soMe cases of LNG powered Paraguay and close region of Brazil. In these cases, ships since Mid last century, its use was confined to the Marine impact is in LNG transport by barges. the LNG carriers that took advantage of boil-off gas. The present Marine LNG use growth was the 2. World Context for Marine LNG most convenient market response to the international regulations that set fix dates to SoMewhat over a decade ago, LNG began to gain in maximum levels of eMissions of pollutant gases. importance as a marine propulsion fuel as a result As More and More international vessels adopt LNG, of the stipulations of the International Convention the ports of call Must adapt their bunkering for the Prevention of the Pollution froM Ships of services to offer LNG as well as Diesel. This is the the International MaritiMe Organization (IMO- requireMent of ship operators to Argentine port MARPOL, Annex VI), the principal international authorities, Mainly for cruises and containerships agreement on MaritiMe environmental issues. that are the earlier adopters of LNG. In the case of Among other Measures, it proposed the reduction bulk carriers (the largest type of vessels calling of Sulfur Oxide (SOx) eMissions to MaxiMum levels argentine ports) this adoption is still very low due of 4.5% by 2012 and of 0.5% as of the year 2020. 1 However, it also deterMined certain geographical areas with special pollution protection Measures based on their high traffic or ecological condition. They are designated as Emission Control Areas (ECAs) and include the coasts of the U.S., the Caribbean, the North Sea and the Baltic, where much more demanding maximum levels are instituted: 1.5% (2010) and 0.1% (2015). In order to coMply with these regulations, the use Figure 3 – LNG Powered Antarctic Ship Design (UTN) of LNG eMerged as the Most convenient environMental and econoMic solution, which in turn iMplied investments in Modifications or in the construction of new LNG-powered ships as well as in port infrastructure to supply the fuel. The international cases that achieved success were those that Managed to overcoMe the “chicken or egg” dilemMa through public-private efforts that made harmonious development possible: in bunkering infrastructure that ensured LNG Figure 4 – LNG Powered Pusher Design (ConsulMar) availability at ports, and a reduction in the cost of marine LNG-powered propulsion which enabled 3. Demand of Marine LNG in Argentina ship owners to invest in LNG powered vessels. An ever-increasing nuMber of ships are adopting The aiM is to establish an estiMate of the voluMe LNG as propelling fuel, it being estiMated that by and profile of current demand for Marine LNG and the year 2025 they Might reach 2,000 large-size its projection for 2040. units (OECD Japan, 2018) as shown in Figure 1, This starts out with an analysis of current (2019) bunkering volume per type of vessel and port, which provides baseline data for the projections. With this inforMation, an estiMate is made for potential deMand for Marine LNG by regions, which is transferred onto a Map of deMand suMMarizing the data. Lastly, there is a suMMary of consolidated deMand and several conclusions. 3.1. Current Bunkering Volume (2019) Delving into the statistics published by the Figure 1- NuMber of LNG powered ships Projection Argentine National Energy Secretariat (S. Energía Argentina isn’t entirely absent from this new Data, 2019), it has been possible to asseMble a propulsive Mode: the ferry francisco (BUQUEBUS) series of tables and graphs that suMMarize the was one of the world’s first applications of LNG, necessary inforMation. The Methodology applied and local designs are now being developed for consisted in taking the Monthly statistical pusher tugs (ARPS, ConsulMar, Tandanor) for the inforMation for the last full year without COVID-19 Paraná Paraguay waterway and for an argentine effect; i.e., the twelve Months of 2019. polar vessel (UTN) with MiniMum environMental The 12 Most significant ports were examined and impact, awarded by the Society of Naval Architects the voluMe of bunkering was separated into three and Marine Engineers (SNAME). types of fuel: Diesel Oil (2, 2B and 3); fuel Oil, and 70/30 Mix, and also into two types of traffic (Cabotage and International). Seven sectors of demand interest were defined: Parana Paraguay Waterway (PPW): Pusher tugs and self-propelled craft along that waterway. Port Services: Towing tugs, dredgers, beacon craft. Bulk Carriers out of ports (BC): Bulk carriers that load fuel in the CoMMon Area of Rio de la Plata after loading bulk cargo in the Rosario-Santa Fe Figure 2 – Francisco Fast Ferry (Buquebus) (Rosafé) ports area. 2 Cargo ships in Harbor (CS): Container ships, ro-ros, Other: Navy ships, coast guard vessels, offshore bulk carriers, tankers and general freight vessels support, etc. that bunker at the ports where they operate. The following Table suMMarizes the coMbinations Fishing craft: Fishing vessels that load fuel at the of Port, Traffic, Type of fuel and Sector of DeMand. Atlantic port where they operate TourisM: Cruise ships, ferries, cataMarans and passenger craft. Table 1 – Bunkering Volume in Argentine Ports Thous of Liters/Yr (2019) BY TYPE OF OIL AND TRAFFIC CABOTAGE INTERNATIONAL BY DEMAND SECTOR BUNKERING PORT GO FO 70/30 GO FO 70/30 WPP PORT BC CARGO FISH. TOUR. OTHER CORRIENTES 0,1% 1,2 0,4 0,4 0,4 1,2 - SAN LORENZO 5% 56 7,4 5,7 35,0 8,3 53,5 2,8 PTOS ENTRE RIOS 0,0% 0,4 0,4 0,4 - ROSARIO /STA FE 0,2% 1,8 0,9 0,9 1,7 0,1 0 SAN NICOLAS 0,1% 1,5 0,4 1,1 1,0 0,1 0,4 ZARATE-CAMPANA 16% 179 22,8 0,5 31,8 31,1 12,1 80,7 5,4 3,6 170 CABA 7% 83 8,2 4,2 11,6 23,6 24,1 11,8 4,2 4,2 62,6 8,3 4,2 DOCK SUD 1% 11 3,8 1,3 3,0 0,1 2,9 0,6 0,6 0,6 8,8 - 0,6 LA PLATA 51% 583 42 5 59 11 314 153 5,8 560 17,5 - - MAR DEL PLATA 7% 83 81,6 1,7 1,7 8,3 69 1,7 2,5 BAHIA BCA - WHITE 3% 32 26,8 3,1 1,4 1,0 1,0 30,0 0,3 - 1,0 PTO. MADRYN 0,4% 5 4,5 0,3 - 0,9 3,9 0,1 - COMODORO 0,4% 4 4,1 - 0,7 3,3 - 0,0 PTO. DESEADO 3% 40 38,3 1,4 0,4 - 39 - 0,4 USHUAIA 6% 69 18,1 51,1 0,7 10 10 42,9 4,8 TOTAL 1.151 259 17 105 162 359 249 68 21 560 310 126 53 13 GO FO 70/30 GO FO 70/30 WPP PORT BC CARGO FISH. TOUR. OTHER 381 770 6% 2% 49% 27% 11% 5% 1% CABOTAGE INTERNATIONAL The first conclusion is that the three types of fuels (68,000 liters, 6%), tourisM (53,000 liters, 4%), port analyzed have a siMilar participation in the total, services and others (34,000 liters, 3%). but a very different one when looked at according to traffic, which for the greater part (67%) is Table 2- %of Use of Bunkering by DeMand Market international.