LNG Evolution within the Shipping Industry
Teekay LNG Projects
LNG Evolution within the Shipping Industry 28 April 2012
Brief Bio - David Macdonald Teekay Vancouver » Position: Director, New Build & Conversions, Teekay, Vancouver. » Responsibilities: Technical services management for new builds and conversions. » Career: 2002 to date - Teekay, New Build Director for the last 4 years. 2000- 2002 - Golar Management, Fleet Technical Manager & New Build Manager 1965 – 2000 - BP Tanker Company seagoing to Chief Engineer, shore based in various Operational and New Build roles.
» Qualifications: UK DTp Extra First Class Combined Certificate of Competency (Steam and Motor) 1982 Diploma in Management Studies (Shipping) Plymouth 1983 Chartered Engineer - CEng Chartered Marine Engineer – CMarEng Fellow of The Institute Of Marine Engineers, Science and Technology – FIMarEST Fellow of The Institution of Diagnostic Engineers - FIDiagE.
» Gas Industry Specific involvement • Member of SIGTTO (Society of Gas Transport & Terminal Operators) General Purpose Committee from 2005. • IMO - member of the Steering Committee for the IGC (International Gas Carrier) Code review • IMO – member of the Correspondence Group for the new IGF (International Gas Fuel) Code 2
Teekay Corporation
» » » »
Founded in 1973 by the late Torben Karlshoej Transnational company with 6,400 employees Transports approximately 10% of the world’s seaborne oil World’s largest operator of shuttle tankers and mid-size oil tankers » Leader in harsh weather floating production solutions » Third largest independent LNG ship owner and operator
3
Teekay Transnational Operations Vancouver » CEO » Executive (Gas / Conventional / Corporate) » Corporate Support » Commercial Support » Fleet Support
Bermuda » Corporate Office
Stamford » Conventional: Gemini Pool Commercia l
London
Glasgow » Conventional / Gas: Ship Mgmt Manning
» Conventional: Commercia l BD
Aberdeen » FPSO: Ops
Trondheim
Stavanger
» FPSO: Executive Commercial BD
Tokyo
Conventional » Commercial
Shanghai
» Ship Mgmt
» Conventional / Gas / Offhshore Representativ e Office
» BD
Rio de Janeiro » Shuttle: Ship Mgmt BD
Macaé / Itajai » FPSO: Ops
Madrid » Gas: Commercial BD
Mumbai » Manning » Fleet Support
Singapore » Conventional Commercial Ship Mgmt BD
» FSO: BD
4
Perth » FSO: Ship Mgmt BD » Towage: Ship Mgmt
Sydney » Marine Services » FSO/ Conventional / Bulk Ship Mgmt
Teekay LNG Fleet EXCALIBUR
138,000
2002
EXCELSIOR
138,000
2005
POLAR SPIRIT
88,500
1993
ARCTIC SPIRIT
88,500
1993
HISPANIA SPIRIT
140,500
2002
MADRID SPIRIT
138,000
2004
CATALUNYA SPIRIT
138,000
2003
SOYO
160,000
2011
2004 2006
MALANJE
160,000
2011
AL MARROUNA
140,500 151,700
LOBITO
160,000
2011
AL AREESH
151,700
2007
AL DAAYEN
151,700
2007
CUBAL
160,000
2012
AL HUWAILA
217,000
2008
MERIDIAN SPIRIT
165,500
2010
AL KHARSAAH
217,000
2008
WOODSIDE DONALDSON 165,500
2009
AL SHAMAL
217,000
2008
MAGELLAN SPIRIT
165,500
2009
AL KHUWAIR
217,000
2008
ARWA SPIRIT
165,500
2008
TANGGUH HIRI
155,000
2008
MARIB SPIRIT
165,500
2008
TANGGUH SAGO
155,000
2009
METHANE SPIRIT
165,500
2008
GALICIA SPIRIT
Excelsior FSRU – Bahia Blanca, Argentina
5
Agenda
» A Brief History The beginning of LNG Shipping The Development of Regulations » Existing Code Impact on Shipping Gas Containment Systems Proven Propulsion Systems » Regulations Update IGF Code Development
6
A Brief History – The beginning of LNG Shipping “Methane Pioneer”
1959
(ex- “Normati”) converted in 1959 to an LNG carrier of 5,000 m3
“Methane Princess” & “Methane Progress” – first purpose built gas ships constructed in 1964 with a cargo capacity of 27,000 m3 7
A Brief History – The Development of the Regulations » The first LNG carriers: 1959 - Methane Pioneer 1964 - Methane Princess and Methane Progress
» Regulations for LNG carriers: » 1976
Code for Existing Ships Carrying Liquefied Gases in Bulk
1976
Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk
1983
International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk.
8
Existing Code Impact on Shipping
» The key areas where the IGC code will impact commercial shipping are: • Gas Containment Systems • Proven Propulsion Systems
9
Gas Containment Systems - Type A Tanks
10
Gas Containment Systems - Type B Tanks
11
Gas Containment Systems - Type C Tanks
12
Gas Containment Systems - Current Fleet Tank Designs Development of the ‘membrane’ techniques in France by two separate companies Gaz-Transport and
Technigaz. They have now merged into one company - ‘GTT’ 13
Gas Containment Systems - Current Fleet Tank Designs » Development of the spherical tank design (MossRosenberg) type ship in early 1970’s
14
Gas Containment Systems - Current Fleet Tank Designs Introduction of the IHI-SPB system in 1990’s Tank dome CL Bhd
Swash Bhd Inner hull
Insulation
Access space Support Rolling chock 15
LNG Containment Systems - Other Tank Designs » Astano » Gaz Transport/McDonnel Douglas » Bridgestone Semi Membrane » IHI Flat Tank » Shell Internal Insulation » Chicago Bridge and Iron Spherical Containment » CONCH Freestanding Spherical LNG Tank » CONCH Balsa/PUF Containment System » CONCH 2 Containment System » Gaz Transport/Pittsburgh Des Moines free standing system » LGA Zellantank System » Linde AG MVT Containment System » Ocean Pheonix Pressure LNG System » Verolnave LNG Containment System
16
Existing Code Impact on Shipping
» The key areas where the IGC code will impact commercial shipping are: • Gas Containment Systems • Proven Propulsion Systems
17
IGC – Chapter 16 “Methane (LNG) is the only cargo whose vapour can be used in machinery spaces of category A and in such spaces may be utilised only in boilers, inert gas generators, combustion engines and gas turbines.”
LNG - UP
LPG - DOWN 18
LNG Ship Propulsion Systems - Overview Main Propulsion »
Steam Turbine
»
Diesel Engines:
»
Dual fired diesels Direct drive Diesel electric / Azipod
19
LNG Ship Propulsion Systems – Steam Low thermal efficiency
Steam Turbines
High fuel costs Low noise Low vibration
20
Gas Burning Arrangement Ventilated Duct Gas Burning
21
Ventilated Gas Burning Duct
22
Gas Fueled - Diesel Engines Types Duel of Engine FiredAvailable Diesels •
Spark ignition of low pressure gas
•
High pressure gas injection + pilot fuel
•
Dual fuel - low pressure gas + pilot fuel
Advantages
Disadvantages
Lower Fuel Consumption
Higher maintenance costs
Higher Available Power
Higher vibration levels Higher noise levels 23
Gas Fueled – Diesel Engines
Ventilated Duct
24
Gas Fueled - Diesel Engines – Fuel Supply Class Requirements for Dual Fuel Engines »
Double wall arrangements as for boiler plant
»
Start up on oil fuel only
»
Immediate change over to oil fuel operation
»
Gas valve timing to prevent gas passing to the exhaust
»
Crankcase gas detection
25
Dual Fuel Diesel Electric
26
New Era in LNG – A New Code » At MSC 78 in May 2004 the IMO May - - approved a new work programme: “The Development of international regulations for gas fuelled ships’
» This Code refered to as the IGF Code is not expected to enter force before 2015 and by then many of us here would expect to be either using gas as fuel by this time or certainly to be at an advanced stage of planning and commitment.
» Despite the best endeavours of many people, the industry finds itself in a similar situation to that of the early days of LNG shipping where ships were in service and the rules were produced retrospectively.
27
Do we need Prescriptive Rules? » Although the final IGF Code is not completed, the industry is in fact much better shape than when the first LNG carriers were brought in to service. » Today we already have the following: • • • •
IGC Code. Interim Guidelines for Gas fueled vessels Many experienced personnel in the industry. Good safety procedures
» Lets Build on the experience and knowledge of the existing LNG Industry so that we can deliver safe, reliable and effective powering solutions. You are not alone!
28
There are Hurdles Ahead – for conversion to LNG Managing Public Perception An education campaign should be considered
Managing the Regulatory Environment IMO Rules do not yet exist Class rules exist but are inconsistent Flag state must be consulted and onboard with decisions taken Environmental issues need to be incorporated
Training Effective Training of Shore Staff Effective Training of Crew
29
The Responsibilities of a LNG User To Maintain Safety Maritime LNG industry has an unparalleled safety record
To Educate employees at all levels CEO down must have the basic knowledge
To disseminate Informed and accurate information Your credibility and your customers trust is at risk
30
Summary » The LNG shipping industry has an exemplary safety record built up over the last 50 years.
» Let us maintain that safety record for gas-fueled vessels.
» LNG is safe but is required to be handled with care and respect.
» Let us look forward to the future and the use of ‘LNG as fuel’ with the added benefits to our ENVIRONMENT and our OPERATING COSTS.
» Thank you
31
Cryogenic Exposure
32
LNG Evolution within the Shipping Industry 28 April 2012
Brief Bio - David Macdonald Teekay Vancouver » Position: Director, New Build & Conversions, Teekay, Vancouver. » Responsibilities: Technical services management for new builds and conversions. » Career: 2002 to date - Teekay, New Build Director for the last 4 years. 2000- 2002 - Golar Management, Fleet Technical Manager & New Build Manager 1965 – 2000 - BP Tanker Company seagoing to Chief Engineer, shore based in various Operational and New Build roles.
» Qualifications: UK DTp Extra First Class Combined Certificate of Competency (Steam and Motor) 1982 Diploma in Management Studies (Shipping) Plymouth 1983 Chartered Engineer - CEng Chartered Marine Engineer – CMarEng Fellow of The Institute Of Marine Engineers, Science and Technology – FIMarEST Fellow of The Institution of Diagnostic Engineers - FIDiagE.
» Gas Industry Specific involvement • Member of SIGTTO (Society of Gas Transport & Terminal Operators) General Purpose Committee from 2005. • IMO - member of the Steering Committee for the IGC (International Gas Carrier) Code review • IMO – member of the Correspondence Group for the new IGF (International Gas Fuel) Code 2
Teekay Corporation
» » » »
Founded in 1973 by the late Torben Karlshoej Transnational company with 6,400 employees Transports approximately 10% of the world’s seaborne oil World’s largest operator of shuttle tankers and mid-size oil tankers » Leader in harsh weather floating production solutions » Third largest independent LNG ship owner and operator
3
Teekay Transnational Operations Vancouver » CEO » Executive (Gas / Conventional / Corporate) » Corporate Support » Commercial Support » Fleet Support
Bermuda » Corporate Office
Stamford » Conventional: Gemini Pool Commercia l
London
Glasgow » Conventional / Gas: Ship Mgmt Manning
» Conventional: Commercia l BD
Aberdeen » FPSO: Ops
Trondheim
Stavanger
» FPSO: Executive Commercial BD
Tokyo
Conventional » Commercial
Shanghai
» Ship Mgmt
» Conventional / Gas / Offhshore Representativ e Office
» BD
Rio de Janeiro » Shuttle: Ship Mgmt BD
Macaé / Itajai » FPSO: Ops
Madrid » Gas: Commercial BD
Mumbai » Manning » Fleet Support
Singapore » Conventional Commercial Ship Mgmt BD
» FSO: BD
4
Perth » FSO: Ship Mgmt BD » Towage: Ship Mgmt
Sydney » Marine Services » FSO/ Conventional / Bulk Ship Mgmt
Teekay LNG Fleet EXCALIBUR
138,000
2002
EXCELSIOR
138,000
2005
POLAR SPIRIT
88,500
1993
ARCTIC SPIRIT
88,500
1993
HISPANIA SPIRIT
140,500
2002
MADRID SPIRIT
138,000
2004
CATALUNYA SPIRIT
138,000
2003
SOYO
160,000
2011
2004 2006
MALANJE
160,000
2011
AL MARROUNA
140,500 151,700
LOBITO
160,000
2011
AL AREESH
151,700
2007
AL DAAYEN
151,700
2007
CUBAL
160,000
2012
AL HUWAILA
217,000
2008
MERIDIAN SPIRIT
165,500
2010
AL KHARSAAH
217,000
2008
WOODSIDE DONALDSON 165,500
2009
AL SHAMAL
217,000
2008
MAGELLAN SPIRIT
165,500
2009
AL KHUWAIR
217,000
2008
ARWA SPIRIT
165,500
2008
TANGGUH HIRI
155,000
2008
MARIB SPIRIT
165,500
2008
TANGGUH SAGO
155,000
2009
METHANE SPIRIT
165,500
2008
GALICIA SPIRIT
Excelsior FSRU – Bahia Blanca, Argentina
5
Agenda
» A Brief History The beginning of LNG Shipping The Development of Regulations » Existing Code Impact on Shipping Gas Containment Systems Proven Propulsion Systems » Regulations Update IGF Code Development
6
A Brief History – The beginning of LNG Shipping “Methane Pioneer”
1959
(ex- “Normati”) converted in 1959 to an LNG carrier of 5,000 m3
“Methane Princess” & “Methane Progress” – first purpose built gas ships constructed in 1964 with a cargo capacity of 27,000 m3 7
A Brief History – The Development of the Regulations » The first LNG carriers: 1959 - Methane Pioneer 1964 - Methane Princess and Methane Progress
» Regulations for LNG carriers: » 1976
Code for Existing Ships Carrying Liquefied Gases in Bulk
1976
Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk
1983
International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk.
8
Existing Code Impact on Shipping
» The key areas where the IGC code will impact commercial shipping are: • Gas Containment Systems • Proven Propulsion Systems
9
Gas Containment Systems - Type A Tanks
10
Gas Containment Systems - Type B Tanks
11
Gas Containment Systems - Type C Tanks
12
Gas Containment Systems - Current Fleet Tank Designs Development of the ‘membrane’ techniques in France by two separate companies Gaz-Transport and
Technigaz. They have now merged into one company - ‘GTT’ 13
Gas Containment Systems - Current Fleet Tank Designs » Development of the spherical tank design (MossRosenberg) type ship in early 1970’s
14
Gas Containment Systems - Current Fleet Tank Designs Introduction of the IHI-SPB system in 1990’s Tank dome CL Bhd
Swash Bhd Inner hull
Insulation
Access space Support Rolling chock 15
LNG Containment Systems - Other Tank Designs » Astano » Gaz Transport/McDonnel Douglas » Bridgestone Semi Membrane » IHI Flat Tank » Shell Internal Insulation » Chicago Bridge and Iron Spherical Containment » CONCH Freestanding Spherical LNG Tank » CONCH Balsa/PUF Containment System » CONCH 2 Containment System » Gaz Transport/Pittsburgh Des Moines free standing system » LGA Zellantank System » Linde AG MVT Containment System » Ocean Pheonix Pressure LNG System » Verolnave LNG Containment System
16
Existing Code Impact on Shipping
» The key areas where the IGC code will impact commercial shipping are: • Gas Containment Systems • Proven Propulsion Systems
17
IGC – Chapter 16 “Methane (LNG) is the only cargo whose vapour can be used in machinery spaces of category A and in such spaces may be utilised only in boilers, inert gas generators, combustion engines and gas turbines.”
LNG - UP
LPG - DOWN 18
LNG Ship Propulsion Systems - Overview Main Propulsion »
Steam Turbine
»
Diesel Engines:
»
Dual fired diesels Direct drive Diesel electric / Azipod
19
LNG Ship Propulsion Systems – Steam Low thermal efficiency
Steam Turbines
High fuel costs Low noise Low vibration
20
Gas Burning Arrangement Ventilated Duct Gas Burning
21
Ventilated Gas Burning Duct
22
Gas Fueled - Diesel Engines Types Duel of Engine FiredAvailable Diesels •
Spark ignition of low pressure gas
•
High pressure gas injection + pilot fuel
•
Dual fuel - low pressure gas + pilot fuel
Advantages
Disadvantages
Lower Fuel Consumption
Higher maintenance costs
Higher Available Power
Higher vibration levels Higher noise levels 23
Gas Fueled – Diesel Engines
Ventilated Duct
24
Gas Fueled - Diesel Engines – Fuel Supply Class Requirements for Dual Fuel Engines »
Double wall arrangements as for boiler plant
»
Start up on oil fuel only
»
Immediate change over to oil fuel operation
»
Gas valve timing to prevent gas passing to the exhaust
»
Crankcase gas detection
25
Dual Fuel Diesel Electric
26
New Era in LNG – A New Code » At MSC 78 in May 2004 the IMO May - - approved a new work programme: “The Development of international regulations for gas fuelled ships’
» This Code refered to as the IGF Code is not expected to enter force before 2015 and by then many of us here would expect to be either using gas as fuel by this time or certainly to be at an advanced stage of planning and commitment.
» Despite the best endeavours of many people, the industry finds itself in a similar situation to that of the early days of LNG shipping where ships were in service and the rules were produced retrospectively.
27
Do we need Prescriptive Rules? » Although the final IGF Code is not completed, the industry is in fact much better shape than when the first LNG carriers were brought in to service. » Today we already have the following: • • • •
IGC Code. Interim Guidelines for Gas fueled vessels Many experienced personnel in the industry. Good safety procedures
» Lets Build on the experience and knowledge of the existing LNG Industry so that we can deliver safe, reliable and effective powering solutions. You are not alone!
28
There are Hurdles Ahead – for conversion to LNG Managing Public Perception An education campaign should be considered
Managing the Regulatory Environment IMO Rules do not yet exist Class rules exist but are inconsistent Flag state must be consulted and onboard with decisions taken Environmental issues need to be incorporated
Training Effective Training of Shore Staff Effective Training of Crew
29
The Responsibilities of a LNG User To Maintain Safety Maritime LNG industry has an unparalleled safety record
To Educate employees at all levels CEO down must have the basic knowledge
To disseminate Informed and accurate information Your credibility and your customers trust is at risk
30
Summary » The LNG shipping industry has an exemplary safety record built up over the last 50 years.
» Let us maintain that safety record for gas-fueled vessels.
» LNG is safe but is required to be handled with care and respect.
» Let us look forward to the future and the use of ‘LNG as fuel’ with the added benefits to our ENVIRONMENT and our OPERATING COSTS.
» Thank you
31
Cryogenic Exposure
32
