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MARPOL ANNEX VI – impact on LNG transportation

11 March 2009

Glenn O’Brien
Clyde & Co LLP
Doha Office
Level 9, Qatar Financial Centre
West Bay, Doha
The State of Qatar
MARPOL
MARPOL
Annex
AnnexVI
VI
 MARPOL 73/78 Annex VI

 What is it?

 When did it enter into force?

 Who does it apply to?

MARPOL
MARPOL
Annex
AnnexVI
VI

 The obligations and requirements under

Regulation 13 & 14:
 The sulphur cap 4.5% m/m
 Establishment of SOx Emission Control Areas
MARPOL
MARPOL  SECA’s
Annex
AnnexVI
VI  The Baltic Sea
 The North Sea / English Channel
MARPOL
MARPOL  Additional National Requirements
Annex
AnnexVI
VI  EU Council Directive 2005/33/EC

- By 1 January 2010 all ships berthed at EU

Ports 0.1%
- Cold-ironing exemption
- From 1 January 2008 to 31 December 2009
0.1% for MGO in EU territorial waters
- From 1 January 2010 sale of MGO with a
sulphur content in excess of 0.1% banned in
EU member States
MARPOL
MARPOL  Recent Developments
Annex
AnnexIV
IV  MEPC meeting 6-10th October 2008
- SOx reduction to 3.5%
- 0.5% by 1 January 2020
 SECA’s
- SOx reduction to 1% from 1 July 2010
- 0.10% by 1 January 2015

 US ratification – 8 February 2009

- Compliance inspections introduced
- Marine Vessel Emissions Reduction Act
2008 (not passed) proposed a reduction to
0.1% from 1 January 2010
MARPOL
MARPOL  Effects on LNG shipments and transport
Annex
AnnexVI
VI documents?
 Qatar has not acceded to Annex VI

 LNG shipments from Qatar into Europe & the

US

 Flag State requirements

 Monitoring and compliance inspections

 Liabilities?
MARPOL
MARPOL  How to Comply?
Annex
AnnexVI
VI
 Storage and testing
 Accuracy of Documents
 Bunker Delivery Notes

 Voyage monitoring / planning

 Switching of fuels to comply at point of entry
to SECA’s
 Ensuring compliant bunkers available enroute
& at ports of loading/discharge
MARPOL
MARPOL  REVIEW Transportation Documents
Annex
AnnexVI
VI

 Charterparty clauses
- BIMCO Bunker Fuel Sulphur Content Clause
- INTERTANKO Bunker Emission Clause

 Bunker Supply Contracts

- Intertanko Annex VI Clause for Bunker
Supply Contracts
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