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March 2024

NORTH AMERICA
A supplement to LNG Industry

Distributed at

Our North American supplement is returning soon!

This special issue will focus on LNG activity in


the US, Canada, and Mexico, with keynote articles,
case studies, and more.
ISSN 1747-1826

CONTENTS
03 Guest comment 30 Putting the Elbehafen
MARCH 2024

terminal on the fast-track


05 LNG news Eric Farrell, Head of Commissioning at EnerMech, summarises
how experience, expertise, and the right company ethos are key
to safely and efficiently delivering fast-track projects.

10 Considering China's role 34 The impact of rapid LNG


in LNG growth
Jessica Casey, LNG Industry, UK, provides a brief overview of
China’s LNG industry. Since February 2022, LNG has become an even more
vital component in the global energy mix as energy
security climbs the agenda. Jose Navarro, Lloyd’s Register’s
Global Gas Technology Director, addresses some of the
pressures being put on safety as a result of the rapid
expansion of LNG.

39 Vessel efficiency bubbling up


for LNG carriers
The LNG carrier segment is recognising the need for improved
vessel and fuel efficiency – clean technology can meet
those needs today and in the future, says Alistair Mackenzie,
Chief Commercial Officer at Silverstream Technologies.

43 A new standard of BOG


management
10 With its increased focus on environmentally-friendly designs
and operations, the global LNG carrier fleet has accepted
boil-off gas management systems as the de-facto standard for
today’s LNG carrier designs. Pål Steinnes, Heads of Sales and
Business Development for Midstream and LNG, Wärtsilä, Norway,
14 AI sentinels examines developments that have been made for enhanced
Rotem Battat, Chief Product Officer, Captain’s Eye, Singapore, flexibility and efficiency of cargo management on LNG carriers.
establishes how artificial intelligence surveillance can improve
safety in the LNG maritime industry.

19 Decarbonising LNG
Tommaso Rubino, LNG Strategic Development Manager,
Enrico Calamai, LNG Strategic and Growth Manager,
Rossella Palmieri, LNG Decarbonisation Manager,
Baker Hughes, Italy, outline the delivery of LNG facilities

ON THIS MONTH’S COVER


for low-carbon operations.

23 Considerations in designing
floating LNG assets Gas and Heat is an Italian company with 75 years of experience
Keith Hutchinson, Head of the Professional Technical and
Engineering Services and Senior Consultant in Whole and a strong vocation to the future.
Ship Design and Naval Architecture, Safinah Group, Through a custom-made approach, the company provides
UK, discusses the key drivers and safety aspects to
its clients with solutions tailored to their specific needs.
be considered in designing floating LNG assets for
exploiting stranded gas reserves worldwide. Gas and Heat designs, builds, and delivers highly-engineered
solutions for LNG and bio-LNG-fuelled systems, both in marine,
inland waterway, and land-based areas, as well as an energy
source for small-sized onshore plants. Its R&D department
researches and proposes solutions for the use of alternative
fuels, such as ammonia and hydrogen.
The design and manufacturing cycle of the tanks is completely
carried out in the Tombolo Plant, in the heart of Tuscany.

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COMMENT
DOMINIC MCKNIGHT HARDY
MANAGING DIRECTOR, MIS MARINE
JOE ANDERSON
LEAD DATA SCIENTIST, MIS MARINE

R
ecently, the challenges of the energy and digital these alterations persist for several months, could lead
transitions have been dominating and competing to a revision in the vessel’s calculated CII grade during
for attention. The combination of ongoing the annual assessment. With the potential for widespread
attacks on vessels in the Red Sea, the rise of impacts, ongoing deterioration of CII is a worry for the
the ‘dark fleet’ due to the Ukrainian-Russian conflict, and whole supply chain.
the prolonged drought in the Panama Canal have added The current Cape scenario emphasises the need for
another layer of complexity to global shipping. solutions that calculate carbon performance based on
One significant but often-overlooked consequence known values, providing a real-time assessment of carbon
of the Red Sea attacks is the impact on a vessel’s intensity within an actual voyage.
Carbon Intensity Indicator (CII) grade when rerouting MIS is leading the way in applying relevant sources
around the Cape of Good Hope. Providing vessels with an of vessel data, especially engine characteristics, along
annual score, CII letter grades indicate the operational with operational information from geospatial data and
efficiency of a vessel over a 12-month period. Recent data weather/tide data, to calculate a carbon intensity value
from MIS Marine reveals that vessels tend to sail around for a given voyage. This allows charterers to determine
the Cape approximately 10% faster compared to the their expected carbon accountability and associated costs
Red Sea route, in what could be an attempt to mitigate for the period of a voyage.
the impacts to commercial schedules. For a 100 000 DWT While still at a relatively early stage of CII’s rollout,
gas tanker, this increase in speed translates to an it is vital that the industry recognises the importance
additional fuel consumption of 291 t and a consequent of addressing these issues early on and implementing
increase of emissions of 920 t of carbon dioxide, effective solutions to ensure the long-term success and
compared to transiting the Suez Canal. Consequently, sustainability of shipping’s carbon goals. In forgoing this
this would result in a 17% increase in carbon intensity functionality, CII is at risk of failing the industry, pricing
under the CII framework, posing a considerable risk of players out of the market based on temporary situations
a negative change in the vessel’s annually calculated that arise beyond their control.
letter rating. As the initial wave of CII ratings now begin to play
A vessel’s CII letter rating is determined annually for a part in chartering decisions, it will be interesting to
a calendar year based on its operational performance. observe how the industry responds to this additional
Therefore, any temporary changes in a vessel’s layer of decision-making complexity, and the changes it
performance caused by external factors, especially if will warrant.

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15 South Street, Farnham, Surrey, GU9 7QU, UK Tel: +44 (0) 1252 718 999 Website: www.lngindustry.com
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LNGNEWS
Australia
Global
First modules arrive for
Chevron, Seapeak, Scarborough Energy
and TotalEnergies join Project
MAMII initiative
T otalEnergies, Chevron, and Seapeak have joined the
Methane Abatement in Maritime Innovation Initiative
T he first three Pluto Train 2 modules for the
Scarborough Energy Project have arrived in Karratha,
Western Australia, marking an important stage of the
(MAMII), led by SafetyTech Accelerator. project. The modules, fabricated by Bechtel in Indonesia,
The three companies join the now more than 20 weigh a combined total of more than 4000 t.
members of MAMII, emphasising its role in addressing The modules are three of a total of 51 that will be
methane abatement within the maritime sector. shipped to site from the module yard to form Pluto Train 2.
Chevron, a global energy company, Seapeak, an Pluto Train 2 will be the second LNG production train
owner-operator of liquefied gas vessels, and TotalEnergies, at the existing Pluto LNG onshore facility and will process
the world’s third-largest LNG player, will bring their gas from the offshore Scarborough development.
valuable insights and commitment to MAMII's mission: The Scarborough Energy Project will contribute
tackling the critical challenge of ‘methane slip’. significantly to the Australian economy and create
The initiative has selected four providers to produce thousands of job opportunities during its construction phase.
feasibility studies on the technologies which will reduce Bechtel was selected by Woodside Energy to execute
methane emissions from ships. the EPC of Pluto Train 2, with construction activities
The release of unburnt methane is a key obstacle beginning in November 2021.
to unlocking the full environmental potential of LNG Pluto Train 2 will have an LNG processing capacity
as a maritime fuel. Now in its second year, MAMII was of approximately 5 million tpy. Additional domestic gas
launched in September 2022 by Safetytech Accelerator, infrastructure will be installed at the Pluto LNG facility to
bringing together industry leaders, technology innovators, increase domestic gas capacity to approximately 225 TJ/d.
and maritime stakeholders to advance technologies for Up to 3 million tpy of LNG will be processed at
measuring and mitigating methane emissions in the the existing Pluto Train 1 following modifications to
maritime sector. accommodate Scarborough’s lean gas. The project, will help
MAMII is currently focussed on ‘on-ship’ trials, meet the growing demand for the low-cost, lower-carbon,
expanding the range of pilots, and starting to address reliable energy the world needs today and into the future.
fugitive methane emissions covering the entire spectrum The Scarborough Energy Project is targeting its first
of methane emissions on LNG-fuelled vessels. LNG cargo in 2026.

Germany
DET receives provisional approval for operation of
Brunsbüttel FSRU
T he State Office for the Environment of Schleswig-Holstein
(LfU), Southwest Regional Department, has granted
Deutsche Energy Terminal GmbH (DET) provisional approval to
newly-built jetty could not yet be carried out.
After evaluating the application, it was approved by the
LfU. This means that the continued operation of the FSRU
operate the regasification terminal (FSRU) at the Brunsbüttel in Brunsbüttel at its current berth is formally approved until
site. The LfU thus approved an application from DET dated 15 February 2026, but an earlier relocation of the terminal to
20 December 2023. the new jetty is necessary due to the complex berth situation in
A building permit that had already been issued by the city the port. The provisional approval of the operation was subject
of Brunsbüttel to operate the FSRU at the Brunsbüttel location to conditions in accordance with the BImSchG, including those
expired on 14 February 2023. The new application by the DET relating to pollution control, building, fire protection, water, and
was submitted because the planned relocation of the FSRU to a nature conservation law.

March 2024 5
LNGNEWS
Singapore USA
Pavilion Energy concludes Galveston LNG Bunker
first ship-to-ship LNG Port joins SEA-LNG
bunkering operation to
Rio Tinto G alveston LNG Bunker Port (GLBP), a joint-venture
between Seapath Group, one of the maritime
subsidiaries of the Libra Group, and Pilot LNG, LLC, a

P avilion Energy has deployed the newbuild


LNG bunker vessel, Brassavola, for her maiden
ship-to-ship LNG bunkering operation, delivering 1970 t
Houston-based clean energy solutions company, has joined
SEA-LNG – further enhancing the coalition’s LNG supply
infrastructure expertise and global reach, while giving
of LNG to Rio Tinto-chartered dual-fuelled bulk carrier, GLBP access to the latest LNG pathway research and
Mount Api. This follows the recent delivery of Brassavola to networking opportunities.
Pavilion Energy at the end of January 2024. GLBP was announced in September 2023 and will
Equipped with dual-fuel engines, the Singapore-built develop, construct and operate the US Gulf Coast’s first
Brassavola – also the nation’s first membrane LNG dedicated facility supporting the fuelling of LNG-powered
bunker vessel – has loading and bunkering rates of up to vessels, expected to be operational late-2026.
2000 m3/h, offering customers high operational efficiency The shore-based LNG liquefaction facility will be
and faster bunkering turnover. located on Shoal Point in Texas City, part of the greater
Conducted in the port of Singapore, the operation Houston-Galveston port complex, one of the busiest
marks a pivotal moment in Pavilion Energy’s commitment ports in the US. This is a strategic location for cruise ship
to advance the maritime sector’s decarbonisation goals. LNG bunkering in US waters, as well as for international
Brassavola is chartered by Pavilion Energy to ship-to-ship bunkering and cool-down services. GLBP
supply LNG bunker in the Port of Singapore. It was will offer cost-effective turn-key LNG supply solutions to
built by Seatrium Limited and delivered to owner, meet growing demand for the cleaner fuel in the US and
Indah Singa Maritime Pte. Ltd, a wholly-owned subsidiary Gulf of Mexico.
of Mitsui O.S.K Lines.

Canada THE LNG


Cedar LNG provides ROUNDUP
project update X Armada Technologies announces

C edar LNG and its partners, the Haisla Nation and contract with CoolCo for a hull air
Pembina Pipeline, have provided an update on project lubrication installation
development milestones and timelines.
Cedar LNG has substantially completed several X QatarEnergy to increase country's LNG
key project deliverables, including obtaining material production capacity to 142 million tpy
regulatory approvals, advancing inter-project agreements by 2030
with Coastal GasLink and LNG Canada, signing a heads
of agreement with Samsung Heavy Industries and X GTT receives tank design order from
Black & Veatch, and executing a lump sum EPC agreement. Samsung Heavy Industries for 15
Though numerous milestones have been achieved, LNG carriers
a number of schedule-driven, interconnected elements
require resolution prior to making a final investment Follow us on LinkedIn to read more about the articles
decision, including binding commercial offtake, obtaining www.linkedin.com/showcase/lngindustry
certain third-party consents, and project financing. A
final investment decision is now expected in the middle
of 2024.

6 March 2024
Decarbonization Solutions
for the Full Supply Chain

chartindustries.com
howden.com
LNGNEWS
Africa
Allseas completes GTA infield pipelay scope
11 – 12 March 2024
10th International LNG Congress
(LNGCON 2024) A llseas’ Pioneering Spirit has completed the infield pipelay scope for BP’s ultra-deepwater
GTA LNG project offshore Mauritania and Senegal. Two months after arriving in the field,
production crew welded, scanned, and field joint coated the final piece of pipe for the second
Milan, Italy
https://lngcongress.com 16-in. export gas line.
Safely landed in a 2-m target box at 2400 m water depth, the pipeline will be recovered in
12 – 13 March 2024 J-mode configuration to install the termination assembly. To make this happen, the vessel aft has
StocExpo been fitted with a bespoke J-mode frame with a 1000-t load capacity. It was designed, built, and
Rotterdam, the Netherlands installed onboard in only eight weeks.
www.stocexpo.com The pipelay scope comprises approximately 75 km of 16-in. export lines and 10 km of 10-in.
CRA infield lines, some of the pipeline infrastructure exceeding 2700 m water depth at the deep
03 – 05 April 2024 end. The main firing line and double jointing facilities on Pioneering Spirit have run in parallel
26th Annual International throughout the campaign. Pioneering Spirit will conclude the offshore works by installing the six
Aboveground Storage Tank outstanding flowline termination assemblies.
Conference & Trade Show
Florida, USA Australia
www.nistm.org
Woodside to sell 15.1% Scarborough interest
30 April – 02 May 2024 to JERA
2024 AGA Operations
Conference
Washington, USA W oodside has broadened its strategic relationship with JERA through a transaction that
involves three core elements: equity in the Scarborough joint venture (JV); LNG offtake; and
collaboration on opportunities in new energy and lower carbon services.
www.aga.org/events/2024-aga-operations-
conference-spring-committee-meetings Woodside has signed a binding sale and purchase agreement with JERA for the sale of a 15.1%
non-operating participating interest in the Scarborough JV for an estimated total consideration
07 – 08 May 2024 of US$1400 million. This comprises the purchase price of approximately US$740 million, and
ITLA 2024 Annual International reimbursement to Woodside for JERA’s share of expenditure incurred from the transaction effective
Operating Conference & date of 1 January 2022. Completion of the transaction is expected in 2H24.
Trade Show Woodside and JERA have also entered into a non-binding heads of agreement for the sale
Texas, USA and purchase of six LNG cargoes on a delivered ex-ship basis per year for 10 years, commencing
https://ilta2024.ilta.org
in 2026 from Woodside’s global portfolio.
In addition, a non-binding agreement for new energy collaboration including potential
07 – 09 May 2024 opportunities in ammonia, hydrogen, carbon management technology, and carbon capture and
Canada Gas Exhibition storage was signed to support common decarbonisation ambitions.
& Conference Completion of the Scarborough equity transaction is subject to conditions precedent
Vancouver, Canada including Foreign Investment Review Board approval, National Offshore Petroleum Titles
www.canadagaslng.com
Administrator approvals, Western Australia Government approvals, and satisfaction of requisite
financing approvals.
11 – 13 June 2024 The transaction also includes an option for JERA to acquire a 15.1% non-operating participating
interest in the Thebe and Jupiter fields, as well as a non-binding agreement that outlines a
Global Energy Show Canada 2024
long-term collaboration to pursue opportunities for additional feed gas and joint investment
Calgary, Canada
in offshore gas fields for future tieback to the Pluto LNG facility via Scarborough infrastructure.
www.globalenergyshow.com
A non-binding agreement has also been signed for Woodside to provide carbon management
services to assist JERA to meet its obligations associated with its share of carbon emissions from
17 – 20 September 2024
the Scarborough JV.
Gastech 2024
Following completion of the sale of equity to JERA, Woodside will hold a 74.9% interest in
Texas, USA
the Scarborough JV, and remain as operator.
www.gastechevent.com

8 March 2024
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Our modular LNG solutions enable fast-to-market results, so you can arrive at
your destination on your terms, regardless of the technology, processes, or path.
The invaluable difference:
• Minimize interfaces and reduce prolonged onsite installation time and manpower
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per train
• Utilize the same modular philosophy for gas treating, heavies removal, product and
boil-off handling
• Complete modular solutions for onshore and offshore applications between the pipeline
and storage tank
Jessica Casey,
LNG Industry, UK, provides
a brief overview of China’s LNG industry.

T
he LNG industry in China has witnessed remarkable growth and
transformation over the past few decades, reflecting the nation’s
evolving energy landscape and its commitment to environmental
sustainability. As one of the world’s largest energy consumers and a key
player in global energy markets, China has started to strategically prioritise
the diversification of its energy sources, with LNG emerging as a pivotal
component of its energy mix.
China’s rapid economic expansion and urbanisation have led to surging
energy demands, prompting policymakers to explore cleaner and more
efficient alternatives to traditional fossil fuels. LNG, with its lower carbon
footprint and versatility, has surfaced as a viable solution to meet the
country’s growing energy needs while addressing environmental concerns.
The development of China’s LNG industry has been supported by
robust investments in infrastructure, including LNG import and
regasification terminals, storage facilities, and transportation networks.
Government initiatives and the promotion of natural gas as a cleaner
alternative to coal have further propelled the growth of the LNG
industry in China.
Despite significant progress, challenges have persisted in China’s
LNG sector, including infrastructure constraints, supply chain
disruptions, and regulatory uncertainties. However, the Chinese
government’s commitment to energy security, environmental
sustainability, and economic development underscores its
determination to overcome these challenges and further strengthen
the LNG industry’s role in China’s energy transition.

US pause on LNG exports: How will this


affect China?
Following US President Joe Biden’s announcement that there
would be a temporary pause on pending decisions for the export
of LNG to non-free trade agreement countries,1 many people
questioned how this would affect the world’s energy security.
With the US having overtaken Qatar and Australia to become

10
Considering
China’s
role in LNG
11
the world’s largest exporter of LNG for the very first time in receiving terminal – three 220 000 m3 storage tanks were
the industry’s history last year,2 this is understandable. entered into full service, adding over 400 million m3 of
How much would this threaten energy security natural gas storage capacity. This brought the terminal’s
elsewhere in the world? In theory, it should not affect this total storage capacity to 1.08 billion m3, the largest
too much; since the pause is just on pending decisions, in China.8
projects that are already operational or under construction
are not affected by the decision. In addition, the US plays Securing the delivery of LNG
only a small role in supply China with LNG; US exports To ensure China meets its demand, and in its endeavour
accounted for just 4% of the country’s total LNG purchases to move away from traditional fossil fuels, the key
in 2023,3 with most of China’s LNG imports in 2023 coming Chinese companies have also signed long-term LNG
from Qatar, Australia, and Malaysia.4 These countries are supply agreements. In September 2023, ADNOC Gas and
likely to continue as the dominant suppliers to Asian PetroChina International signed an LNG supply agreement
markets, including China. valued between US$450 – US$550 million.9
Another agreement from the Middle East was signed
A growth in regasification capability between QatarEnergy and Sinopec in November 2023. The
By the end of 2023, China had reclaimed its title as the companies signed a long-term sales and purchase
world’s largest LNG importer, surging to 8.2 million t in agreement (SPA) for the delivery of 3 million tpy of LNG
December – the highest since January 2021, according to from QatarEnergy’s North Field South (NFS) expansion
Kpler.5 It is perhaps no surprise then that China is expected project to Sinopec’s receiving terminals in China over a
to see a 5% rise in LNG demand, with 4 million t growth in span of 27 years. This SPA follows a previous agreement
LNG imports, according to Wood Mackenzie’s recent report, that was signed in November 2022 for the supply of
Asia Pacific Gas and LNG: 5 things to look out for in 2024.6 4 million tpy of LNG over 27 years, the longest LNG supply
The country is likely to dominate LNG demand growth as agreement in the industry’s history.10
it aims to continue switching from coal to gas in the hope In addition to this SPA, the two companies signed a
of reducing carbon emissions and is expected to witness partnership agreement that will see QatarEnergy transfer
the highest additions of LNG regasification capacity in Asia a 5% interest to Sinopec in a joint venture company
between 2023 – 2027, accounting for approximately 35% of that owns the equivalent of 6 million tpy of LNG
the region’s total capacity additions by 2027.7 production capacity in the NFS project. This follows a
According to the same Wood Mackenzie report, similar agreement that was signed in April 2022 which
China alone will add over 50 million tpy of regasification marked Sinopec’s entry as a shareholder in one of the
capacity in 2024, including Chinese inland waterway North Field East joint venture companies that own
terminals (the first of their kind), along with new the project.10
build terminals, and the expansion of existing Moreover, Sinopec has signed a time charter contract
regasification terminals.7 with NYK for the transportation of LNG to China for up to
23 years, beginning in 2024 or later. This will support the
Proposed and current additions country’s intent to be carbon-neutral by 2060.11
The announced Zhoushan II terminal will be the largest
contributor to the country’s regasification capacity LNG exports
addition by 2027; the terminal is anticipated to begin Although China is the largest importer of LNG, the country
operations in 2025 with a capacity of 292 billion ft3, does also export some LNG, although these are mostly
which is expected to increase to 584 billion ft3 by 2027.7 re-exports. In fact, China is now the second largest
Yantai I will be the second-largest terminal in re-exporter, after Spain, re-selling significant shipments
China in regards to LNG regasification capacity additions to other countries in Asia.12 According to Wood Mackenzie,
by 2027. The terminal is being developed at the some Chinese players are also expected to continue
Port of Yanti along the Bohai Sea in the Shandong negotiations with LNG suppliers with the aim of building
province, and was approved construction in 1Q20 by the a flexible portfolio to generate trading profits as they
National Development and Reform Commission of China. compete in international markets with IOCs and traders.
Yantai LNG Group is the proposed operator of the planned
terminal, and POLY GCL Petroleum Investment Ltd has a Conclusion
100% stake in the project. The terminal is expected to In summary, the LNG industry in China represents a
start operations in 2024 with an estimated initial capacity dynamic and evolving sector that plays a crucial role
of 287 billion ft3, increasing to 487 billion ft3 by 2027.7 in the nation’s energy security, economic development,
Meanwhile, towards the end of 2023, and environmental sustainability efforts. With continued
China Petroleum & Chemical Corp. (Sinopec) put the investments, innovation, and policy support, China is
world’s largest LNG storage tank into service at its poised to solidify its position as a major player in the
Qingdao LNG receiving terminal. The tank added global LNG market, while advancing towards a more
165 million m3 of storage capacity to help meet the sustainable energy future.
winter gas demand. The LNG storage tank, with a 100.6 m
dia. and height of 55 m, is a key part of Sinopec’s References
Qingdao LNG receiving terminal’s phase III construction.8 A comprehensive list of this article’s references
On the same day (2 November 2023), the company can be found on the LNG Industry website at:
completed the phase II construction at its Tianjin LNG www.lngindustry.com/special-reports

12 March 2024
Through the strength of our North American assets, we are
dedicated to helping enable the global energy transition,
thoughtfully pursuing avenues to lower the carbon intensity
of our LNG, and developing low carbon solutions to meet the
market demand for clean, reliable energy.

At Sempra Infrastructure we develop, build, operate and


invest in the infrastructure critical to meet the world’s
energy and climate needs.
AI
sentinels
Rotem Battat, Chief Product Officer, Captain’s Eye,
Singapore, establishes how artificial intelligence
surveillance can improve safety in the LNG
maritime industry.

14
I
n the vast expanse of the maritime industry, where the open
seas hold both adventure and challenge, ensuring safety, security,
and operational efficiency is a constant quest. This exploration
delves into the depths of maritime challenges, and focuses on the
prevention of catastrophic accidents in the LNG industry.

The perils of LNG waters


LNG vessels sail through treacherous waters, laden with the
potential for disasters like leakage, fire, and human errors that can
lead to catastrophic consequences. Accidents in the LNG industry
can result in massive financial losses, environmental damage, and,
most critically, loss of life.
According to industry reports, LNG leakage or spillage
incidents pose a significant threat. LNG is highly flammable in its
vapour form, and a leak can result in a flammable cloud. The
consequences of such incidents can range from environmental
pollution to severe safety hazards, making the prevention of these
events paramount.

A sentry against disaster


Captain’s Eye offers a line of defence against
potential disasters in LNG waters. The
system’s primary focus
lies in the early
detection of
smoke, leakage,

15
and human errors, providing a proactive approach to safety and company could alter this landscape, turning the tide in favour of
accident prevention. safety and prevention.
In incidents involving leakage or spillage, the system’s early
z Smoke and fire prevention: the system is designed to detection capabilities can make the critical difference between
swiftly identify the first signs of smoke, enabling the crew to a controlled event and a full-blown disaster. The Captain’s Eye
pinpoint the source before it escalates into a full-blown fire. system has the capacity to enhance safety by mitigating
In LNG vessels, where the cargo is highly flammable, early risks associated with LNG waters, potentially saving lives,
detection is not just a matter of operational efficiency but a preventing environmental pollution, and minimising
critical component in preventing catastrophic accidents. financial losses.

z Human error detection: the company acts as an extra set of The human factor: an overlooked
vigilant eyes, capable of detecting various human behaviours risk
that could lead to accidents. Whether it is entering restricted While the industry acknowledges the technical challenges and
zones or neglecting personal protective equipment, the potential hazards posed by LNG, the human factor remains a
system provides real-time alerts, allowing for immediate critical, and often overlooked, element in accident prevention.
corrective actions. Statistics from maritime safety databases indicate that a
considerable number of accidents in the LNG sector can be
Annually, the industry faces a staggering number of incidents attributed to human factors, ranging from procedural lapses to
that result in significant financial losses, environmental damage, communication breakdowns.
and human casualties. The proactive approach facilitated by the Captain’s Eye addresses this dimension of risk by
monitoring human behaviours in real time. The system’s ability
to detect deviations from safety protocols, such as entering
no-cross zones or neglecting personal protective equipment,
provides a proactive layer of defence against accidents
triggered by human error.

Navigating the evolution of


maritime security
As the maritime landscape evolves, so do the challenges
faced by vessel operators. New vessels come equipped
with CCTV systems, offering a foundation that makes
Figure 1. Captain’s Eye dashboard with overview of the integrating Captain’s Eye into existing setups both easy and
cameras, events, and statistics. straightforward. With vessels growing larger and crew sizes
diminishing, a technology-driven solution becomes imperative
to bridge this safety gap effectively.
Captain’s Eye compliments these existing CCTV systems,
adding a layer of advanced artificial intelligence (AI) that
transforms passive surveillance into an active and intelligent
safety net. The system’s adaptability to various CCTV setups
ensures a smooth integration process, making it an accessible
and practical solution for both new and existing vessels.

The landscape of maritime accidents


Statistics from global maritime safety databases paint a
concerning picture. Accidents in the maritime industry,
ranging from fires to human errors, contribute to substantial
Figure 2. No cross zone detection for safety and security financial losses and environmental damage. As vessels become
reasons.
more sophisticated, the need for advanced safety solutions
becomes paramount.

The data behind maritime safety


Data from maritime safety organisations indicates a
persistent challenge in preventing accidents at sea. Collisions,
groundings, and fires rank among the top incidents, each
carrying the potential for catastrophic consequences. The
financial toll of these accidents is substantial, with repair
costs, environmental fines, and insurance claims reaching
unprecedented levels.
The company’s system offers a proactive solution to prevent
accidents before they escalate. The system’s real-time
Figure 3. Early detection of smoke from an oil leakage in monitoring capabilities provide an early warning system,
the main engine. allowing crews to take immediate corrective actions and

16 March 2024
prevent incidents that could result in financial losses, The crew can now efficiently distinguish between a small fire
environmental damage, and human casualties. and a potentially catastrophic event. This level of early detection,
coupled with visual evidence, empowers the crew to take
The staggering reality of LNG immediate and targeted actions. The potential disaster is averted,
accidents showcasing the instrumental role of Captain’s Eye in preventing
In the realm of LNG, where the stakes are even higher due to accidents and ensuring the safety of both the vessel and its crew.
the volatile nature of the cargo, the consequences of accidents
are particularly severe. Statistics indicate a concerning Connectivity to shore
number of LNG leakage incidents annually, each carrying The company’s technology provides connectivity to shore. This
the potential for disastrous outcomes. Delayed responses to feature enables supervisors and fleet managers to access a
such incidents can result in catastrophic explosions, causing comprehensive suite of tools for enhanced monitoring, analysis,
extensive damage to vessels and posing significant risks to the and communication.
surrounding environment. Captain’s Eye facilitates real-time and recorded video access
The financial toll of LNG accidents is astronomical, with from on-board cameras, allowing shore-based supervisors to
repair costs, environmental fines, and insurance claims reaching have a continuous, vigilant eye on vessel operations. This
unprecedented levels. The company offers a solution to detect feature proves invaluable for assessing situations, responding
LNG leakage in its early stages, mitigating the risks and to alerts, and conducting remote inspections, as well as
averting the catastrophic consequences associated with post-incident investigations.
delayed responses. The system offers advanced statistical tools accessible
from shore, providing supervisors with insights into operational
Human-caused accidents patterns, incident frequencies, and safety trends. This
While the focus often leans towards technical challenges, data-driven approach empowers decision-makers to implement
accidents caused by human factors remain a silent and targeted improvements and preventive measures across
persistent threat in the maritime industry. Human errors, the fleet.
miscommunications, and procedural lapses contribute Incorporating robust operational communication tools
significantly to incidents that could have been prevented with facilitate online and offline communication between on-board
heightened awareness and real-time intervention. crew and shore-based personnel. This ensures efficient
Captain’s Eye serves as an advocate for improved safety coordination, timely response to incidents, and streamlined
culture, actively monitoring human behaviours to detect operational workflows.
deviations from established protocols. By providing real-time Recognising the significance of satellite connectivity in
alerts and visual evidence of non-compliance, the system maritime operations, Captain’s Eye is optimised for minimal
empowers crews to address potential risks promptly, thereby data consumption. This ensures that even in remote areas with
reducing the likelihood of accidents caused by human factors. limited satellite bandwidth, supervisors and fleet managers can
access critical information without compromising the efficiency
Enhancing safety culture of other vessel communication systems.
A robust safety culture is not just a set of procedures but This connectivity feature not only enhances the overall
a collective mindset that permeates every level of an efficiency of fleet management but also establishes a dynamic
organisation. Captain’s Eye contributes to the enhancement link between on-board activities and onshore decision-makers,
of safety culture by fostering a sense of accountability and fostering a collaborative and proactive approach to maritime
awareness among the crew. The system’s real-time monitoring safety and operations.
acts as a continuous reminder of the importance of adhering to
safety protocols, creating an environment where safety is not Beyond standard monitoring:
just a rule but a shared commitment. unveiling anomaly alerts
In a stride towards maritime safety, Captain’s Eye extends
A case for early detection – the its vigilance with anomaly alerts. These alerts encompass
unseen danger of oil leakage scenarios like forgotten hardware and potential fall hazards,
Imagine a scenario where a small oil leakage occurs in the main such as leaving a power cabinet open or materials too close to
engine of an LNG vessel. This leakage is invisible to the cameras the main engine. This proactive approach not only addresses
installed onboard, and as the oil heats up, it starts creating standard risks but also identifies unforeseen circumstances that
smoke. However, this smoke is slow to rise, making it virtually could compromise both crew well-being and vessel integrity.
undetectable by traditional smoke detectors.
In a situation where reliance is solely on traditional Conclusion
detectors, minutes could pass before the system signals an alarm. The early detection of LNG leakage, smoke, and human errors is
Meanwhile, the unseen danger continues to escalate. The severity a useful tool when navigating the waters of the LNG industry.
of such a situation is immense — a small oil leakage, if left By providing a proactive approach to safety and accident
undetected, can lead to a full-blown fire in the main engine. prevention, the system reshapes the narrative, ensuring
Here is where Captain’s Eye becomes a game-changer. Its AI that vessels sail through waters that are not just navigable
algorithms can swiftly detect the initial signs of smoke, providing but safe and secure. In the realm of maritime safety, where
a real-time alert to the crew. Within seconds, a short video is every moment counts and the consequences of oversight are
generated, allowing the crew to visually inspect the situation. In profound, the system’s ability to prevent accidents, minimise
a scenario where smoke is slow to rise, these crucial seconds can financial losses, and, most importantly, save lives, shows
make all the difference. its importance.

18 March 2024
Tommaso Rubino, LNG Strategic Development Manager, Enrico
Calamai, LNG Strategic and Growth Manager, Rossella Palmieri,
LNG Decarbonisation Manager, Baker Hughes, Italy, outline the
delivery of LNG facilities for low-carbon operations.

s i n g L N G
b o ni
a r
c
De

T
he outlook for global LNG demand fuels in 2050, primarily natural gas. gas (GHG) emissions, and lower costs.
is bullish. Given the current Baker Hughes sees natural gas as not This requires installing emissions
LNG price environment and the only key to the energy transition, but reduction technology into existing
quickly changing dynamics, global also a ‘destination’ fuel. plants and designing future plants with
LNG capacity is believed to likely While the IEA World Energy Outlook even more powerful emissions
exceed 800 million tpy by the end of report projects a significant drop in reduction technologies at the core.
this decade to meet growing demand demand for unabated natural gas, it also There is no single leap to realise
forecasts. Despite some scepticism forecasts that natural gas will remain a this objective. Multiple technologies,
over the depth of demand long term, major source of energy. The success of including those developed by
the industry is actively engaged in shared net-zero ambitions therefore Baker Hughes, either exist today or are
developing many new projects in the depends on company’s capabilities to in development that help to create low
near term. produce and supply natural gas in more carbon emissions operating
In every net-zero scenario that does efficient, decarbonised ways. environments, including for liquefaction.
not involve choosing lower living Focusing on the LNG value chain, Two clear routes present the best
standards, half or more of the total real opportunities exist today to short-term opportunities to achieve
energy demand will still be met by fossil improve efficiency, reduce greenhouse more sustainable operations:

19
z First, emissions can be further reduced by improving the Electrified LNG trains for new and
efficiency of turbomachinery and optimising these complex brownfield projects
systems. In addition, there are several promising avenues To maintain their license to operate, LNG operators need
being explored that may unlock greater reductions in solutions today. For brownfield projects, electrification is
time-to-market. one option to be considered to help reduce emissions while
producing more efficiently.
z Second, electrification is providing an attractive avenue For example, in the case for a brownfield project, by
for emissions abatement. While speaking of electrification, substituting the gas turbine for an electric motor, significant
it should be clear there is no silver bullet, no unique emissions reductions can be achieved – as long as the power to
approach – on the contrary, there are different (and feed the electric motor is obtained through renewable or other
necessary) possible paths towards electrification and carbon net-zero emission sources.
reduction in the LNG industry, for both greenfield and Varying shaft-line sizes and configurations, methods of
brownfield projects. delivering electrical power, and technical constraints inherent to
specific sites are some of the reasons why there are multiple
solutions and approaches to electrification.
In any scenario, a consistent benefit is the tangible and
quantifiable reduction in emissions. For every unit of
mechanical-drive power that transitions from a gas turbine to
an electric motor, the potential carbon dioxide (CO2) equivalent
emission reduction amounts to:

z 20 – 40% if the electricity is sourced from a combined-cycle


gas turbine (CCGT) power generation plant. The exact
reduction depends on the comparative efficiency of the
CCGT plant and the original mechanical drive gas turbine.

z 100% if the electricity is sourced from renewable or other


net-zero emission sources.
Figure 1. BCL centrifugal compressor for LNG applications.
State-of-the-art electric motors can run large scale LNG
operations. When paired with renewable energy and/or nuclear
power, net-zero power can be achieved.
A seminal e-LNG project is ADNOC Gas’ Ruwais LNG project,
a 9.6 million tpy facility being developed to run on a
combination of renewable and nuclear power. Baker Hughes is
set to provide two all-electric liquefaction trains for the project
that will utilise the company’s 75 MW BRUSH electric motor
technology, complemented by advanced compressor technology.
While this LNG project will inaugurate operations with net-zero
power, existing LNG terminals can also make the shift to
electrification combined with lower emissions power.

Modular option with lower


emissions drivers
The expansion of the LNG market has created demand for
Figure 2. BRUSH Power Generation, 2-pole generator. medium-to-large projects, which can be developed relatively
quickly and scaled with a turnkey option that contains the
liquefaction train in modular form (1 – 1.5 million tpy).
This requires a compact yet powerful driver, such as the
Baker Hughes LM9000, a simple-cycle efficiency, aeroderivative
gas turbine designed with up to a 65 MW+ driver. This provides
high-power density with reduced fuel use and emissions. This
turbine design also allows for start-ups without venting process
gas. It can operate with emissions below 15 ppm for NOX and
25 ppm for CO at ISO condition. Such modular projects can
reduce CO2 emissions up to 30% compared to a traditional LNG
plant based on a large size train with heavy duty gas turbines.
The turbine’s high-power density results in a smaller
footprint than traditional LNG plants, making it suitable for
offshore settings, which will be critical to increasing the supply
Figure 3. Centrifugal compressor driven by an electric of low emission natural gas. Its compact design and features
motor assembled in the manufacturing site in Florence. that enable quick and straightforward maintenance —

20 March 2024
Designed for efficiency
enthusiasts: LM9000
With 44% efficiency in simple cycle, our LM9000 is the most efficient
gas turbine in the 65+ MW power range. It also helps reduce CAPEX
in LNG because it doesn’t need a helper motor, and its longer
maintenance intervals help reduce OPEX.

LNG capacity up, carbon intensity down.

bakerhughes.com/LM9000

Copyright 2024 Baker Hughes Company. All rights reserved.


including an engine swap capability within 24 hours — position 57% of 555 executives from leading energy and
the LM9000 as a practical choice for both mechanical drive and hard-to-abate industrial firms across 21 countries claim to be
power generation applications. investing or planning to invest in natural gas/LNG as a result of
Packaging power in modular liquefaction also provides plant the energy security crisis, according to a survey commissioned
capacity flexibility by operating multiple units in parallel to last year by Baker Hughes and FT Longitude.
respond to market demand volatility. A power island The sector has clear demand and therefore ambition to
configuration based on mid-size high efficiency gas turbine in a improve efficiencies and reduce emissions, along with costs.
building block architecture couple perfectly with the modular Contracts are no longer simple transactions for equipment, but
liquefaction approach. long-term strategic partnerships with operational efficiency and
The LM9000 gas turbine technology has been chosen for a emissions reductions at the core.
number of prominent global LNG developments, such as the Incorporating advanced emissions reduction technologies
2 million tpy nearshore LNG project of PETRONAS in Sabah, into existing plants is imperative, ensuring even long-standing
Malaysia, and the 9.3 million tpy LNG project of Commonwealth facilities align with contemporary sustainability standards.
in Cameron Parish, Louisiana, the US. Whether the design is large scale, stick-built or for modular LNG
A configuration with multiple LM9000 aeroderivative gas projects, net-zero objectives can be met with a variety of
turbines in a combined heat and power plant (CHP) provides viable options.
99+% availability. For additional flexibility and emissions Natural gas is not the inherent issue; the primary challenge
reduction, renewable power can be integrated as well. For is preventable emissions. Industry needs to support burgeoning
example, a 5 million tpy LNG plant that utilises electric motor energy demand while actively reducing emissions with the
machines to drive its refrigeration trains – potentially composed technologies available today.
by 3 NMBLTM modules, working together – and is equipped with Powering liquefaction trains with electricity sourced from
a 300 MW power generation unit, can decrease its CO2 footprint clean energy reduces emissions and – depending on location – is
up to 15% when 120 MW of renewable power is incorporated. a readily available option. The integration of renewables can also
be considered for powering further the terminal, presenting a
Driving the energy transition holistic approach to cleaner energy. These exciting developments
Natural gas is key to the energy transition, and the industry is also include hydrogen as an alternative fuel source. As example,
now seeing a reversal of the under-investment in gas projects replacing natural gas with hydrogen in heavy duty gas turbines
experienced in recent years. equipped with a diffusive combustion system, blending with
nitrogen, can help to lower CO2 and NOX in exhaust emissions.
In addition, carbon capture and storage are critical to remove
CO2 in LNG operations. By leveraging on existing technologies,
like CO2 compression and pumping, and continuing fostering
innovation of capture technology, the gas industry will be able to
move toward a sustainable development while ensuring the safe
supply of energy.
To orchestrate the integration of various configurations,
equipment types, and technologies, digitalisation is essential for
optimising efficiencies and further lowering emissions. Asset
performance management software is becoming increasingly
important to improve efficiency and achieve the global
2030 agenda.
An integrated approach combining advanced design and
digital intelligence can reduce carbon emissions from the gas
supply chain, including LNG.

Figure 4. LM9000 gas turbine at the manufactuirng and


testing site in Massa, Italy.
Bibliography
1. ‘Baker Hughes Announces Milestone Electric-LNG Award
for ADNOC Ruwais LNG Export Terminal, Baker Hughes,
(4 October 2023), https://investors.bakerhughes.com/news-
releases/news-release-details/baker-hughes-announces-
milestone-electric-lng-award-adnoc-ruwais
2. ‘Baker Hughes to Supply Super Efficient LM9000 Gas
Turbine for PETRONAS Sabah LNG Project’, Baker Hughes,
(19 April 2023), www.bakerhughes.com/company/news/baker-
hughes-supply-super-efficient-lm9000-gas-turbine-petronas-
sabah-lng-project
3. ‘Commonwealth LNG and Baker Hughes Sign Strategic
Agreement’, Commonwealth LNG, (21 August 2023),
https://commonwealthlng.com/commonwealth-lng-and-baker-
hughes-sign-strategic-agreement/
4. ‘Baker Hughes 2023 Energy Transition Pulse: Confidence to
Hit Net-zero Emissions Goals Stable Despite Energy Trilemma’,
Baker Hughes, (24 January 2023), www.bakerhughes.com/
company/news/baker-hughes-2023-energy-transition-pulse-
Figure 5. LNG module under construction in Avenza, Italy. confidence-hit-netzero-emissions-goals

22 March 2024
__________

F
loating LNG (FLNG) technologies have been proposed Keith Hutchinson, Head of
and solutions developed for all regions of the world,
from the arctic to the tropics. It is interesting to note the Professional Technical
that the first FLNG was actually built over six decades
ago and became operational in 1959. The vessel in
and Engineering Services and
question was a small inshore barge moored in a ‘notch’ Senior Consultant in Whole Ship
on Lake Calcasieu close to Lake Charles in Louisiana, the
US. It produced the first 2020 t of LNG shipped – to the Design and Naval Architecture,
UK’s Canvey Island terminal on 20th February 1959, in the
first LNG carrier Methane Pioneer, which was a converted Safinah Group, UK, discusses the
Liberty ship with 5088 m3 of storage. However, it was only
in May 2011 that the first offshore FLNG project, namely
key drivers and safety aspects
Shell’s 3.6 million tpy Prelude, gained final investment
decision (FID). Currently, there are five FLNGs in service
to be considered in designing
(one a conversion), with a further six (one a conversion) floating LNG assets for exploiting
under construction.
An FLNG is, usually but not exclusively, located over a stranded gas reserves worldwide.
stranded offshore natural gas reserve. The field can be
either lean or rich (i.e. with associated condensate or
petroleum gasses) and usually, but not necessarily, without
significant associated oil reserves. As with most traditional
offshore oil FPSO vessels, an FLNG is typically
permanently moored.
The FLNG receives the multi-phase well
fluids to the inlet treatment facilities via
either flexible, or possibly steel
catenary, risers. As with a FPSO, an
FLNG separates the multi-phase
well fluids and stabilises any
associated condensate, etc. for
storage within the hull.
However, following separation
instead of the gas being
compressed and exported via
pipeline, it is further
processed onboard into
marketable liquefied

23
gas products. This typically uses mature and proven on jetties, as with FSRUs but export LNG to LNG carriers,
marinized-based natural gas liquefaction technologies in and are less complex.
order to minimise overall solution risk and, dependent upon Once the field development strategy has identified an
the field characteristics and process/number or trains, LNG FLNG as a possible exploitation option, certain
production rates range from 1 – (a proposed) 10 million tpy. fundamental aspects will influence the selection of an
Typically, the gas is treated to remove the acid gas (carbon appropriate hull design with the operational life dictating
dioxide [CO2] hydrogen sulfide [H2S]), water, and any corrosion margins, fatigue life, etc.
mercury (Hg). It is then cooled to extract heavier petroleum
gases and then the remaining gas, mainly methane (CH4) Configuration and dimensions
and ethane (C2H6), is further cooled and liquefied in the The upper deck area within the cargo region is typically
cryogenic heat exchanger before any excess nitrogen (N2) is made available for locating the topsides modules. It
removed. The LNG, and any liquefied petroleum gas (LPG), is is good practice to site less hazardous utilities, power
stored in cryogenic cargo tanks located in the hull, and any generation/switching, etc. modules between the more
condensate also stored in dedicated tanks within the hull. hazardous processing and liquefaction modules and the
The LNG, LPG, and condensate are offloaded, at required accommodation block. The principal dimensions, regulatory
intervals, to suitable trading LNG carriers, LPG carriers or compliance, and safety of an FLNG are directly governed by
shuttle tankers respectively. The FLNG supply chain the overall topsides layout as this determines the required
typically basically consists of three elements: ‘real-estate footprint’. Drivers include:

z An FLNG offshore moored over the gas field. z Location of accommodation, topsides modules, flare, etc.

z LNG carriers for transhipment to market. z Separation (safety) areas/gaps between groups of
modules to prevent jet fires propagating and to
z Either a standard onshore LNG reception terminal, or an dissipate blast, etc.
FSRU vessel moored near-shore/inshore.
z Process deck elevation requirements to afford suitable
Note that there are alternatives to ‘in field FLNGs’, i.e. separation of the process deck from the hull’s upper
‘pipeline FLNG’ assets which are designed receive pipeline deck regarding blast, etc.
gas from, typically, the shore and are moored near-shore or
z Appropriate blast protection.

z Suitable thermal protection on the upper deck, etc. in


way of cryogenic modules, etc.

z Mooring and offloading.

z Main power generation and process cooling water


system philosophies.

z Provision of craneage and maintenance ways.

z Incorporation of workshops and laydown/storage areas.

z Access and escape routes.


Figure 1. 2016 newbuild 177 000 m3 membrane 1.2 million tpy
nitrogen cycle FLNG.
The accommodation block cannot be sited over spaces
contiguous with cargo tanks. Hence, on FLNGs and FPSOs,
accommodation blocks are invariably sited over machinery
spaces. Obviously, the size, layout, orientation, and
location of the accommodation block will influence the
design significantly.
If a turret mooring system is chosen, then this is best
sited forward of the process plant if a naturally weather
vaning swivel solution is adopted. If a spread mooring
system is applicable, then this is incorporated on the
forward and aft decks and, if moored to a jetty, then a
mooring arrangement based on a standard marine one can
be adopted, which will impinge little on the upper deck.
Offshore, the offloading solution for LNG and LPG is,
currently, side-by-side due to the predominant application
Figure 2. 2009 147 600 m3 spherical IMO Type B SS ST of ‘hard-arms’. However, this is not the case for condensate
LNG carrier. where a tandem arrangement with the offtake shuttle

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tanker in line astern of the FLNG is typically adopted; It fundamentally drives the structural arrangements
hence, the offloading system needs deck space at the aft and scantlings, together with the principal dimensions
end of the FLNG for turret moored designs – for spread and configuration. The common choices of containment
moored designs it is possible that a buoy system may system are:
be utilised.
z Self-supporting spherical IMO Type B – converted LNG
Topsides liquefaction and process carriers only.
Only the N2 cycle and the mixed refrigerant (MR)
liquefaction processes, both single (SMR) and dual (DMR), z Self-supporting prismatic IMO Type B (SPB).
have been currently utilised offshore due to the inherent
footprint limitations of an FLNG compared to a land-based z Membrane – typically GTT’s Mk.III variants and
development. The MR process offers the greatest No.96 systems.
liquefaction efficiency and lower space requirements due
to using liquid rather than gas refrigerant(s). However, such Storage capacity and configuration
liquid refrigerants are flammable and hence a potential A model of the production rate together with offloading
source of vapour clouds. Practically, the SMR process and frequency/parcel size(s) and required buffer storage
the N2 cycle, even with pre-cooling, can only produce up for weather, and to a lesser degree tank inspection and
to approximately 1.5 million tpy of LNG per train; amounts maintenance requirements, will determine the minimum
above this requires application of the DMR process. required LNG, LPG, and condensate cargo storage capacity.
Specific aspects of the topsides that drive the hull In addition, the regulatory regime, chemical requirements,
design from the earliest stages are: refrigerant (for liquefaction process) requirements, etc.
must also be determined and accommodated within the
z Relative layout and separation requirements hull. Depending upon the required cargo storage, together
of modules. with the selected containment system and tank sizes,
etc. then the configuration of the cargo region can be
z Footprint of individual modules. significantly affected as it may force cargo tanks to be
‘in-line’ or ‘wrapped’, etc.
z Weight (dry and wet), extents, etc. of individual modules.
Environment
z Longitudinal and transverse centres of gravity of The environment has many facets, such as: whether the
individual modules. location is offshore or near-shore; waves categorised
as benign to harsh with unidirectional or bi-directional
z Vertical centre of gravity of individual modules and seas; wind; currents, etc. Even sea areas with ice can
elevation of the process deck. be exploited using FLNGs provided suitable hull forms,
construction materials, scantlings, and moorings are
Due to the large footprint required for LNG topsides applied. The environment imposes an upper and a lower
modules, it may be advantageous to site non-hazardous limit on FLNG dimensions – too small and motions will be
process utilities, such as sea water cooling pumps and heat too extreme to provide a stable platform for the operation
exchangers, power generations/transformers/switchboard of the topsides, too large and the mooring system will be
rooms, etc. below the upper deck within the hull rather unduly affected. Other aspects which must designed for
than in modules on the process deck. include acceptability of motions regarding safe personnel
operations, extreme wave, loads, etc.
Containment system The wave environment can introduce large bending
The selection of the containment system is governed moments and shear forces into the hull girder. In the more
the metocean environment, cost, and preference, etc. extreme and harsh environments, actual site-specific
longitudinal wave bending moments can significantly
exceed the classification societies rule values from the
worldwide service. This therefore necessitates a new-build
specially-strengthened hull with extensive additional
longitudinal and other material compared with trading LNG
carriers designed for standard worldwide service. For more
benign locations utilising small-to-medium FLNGs,
conversion of existing LNG carriers' tonnage can be
advantageous but requires incorporation of significant hull
sponsons due to the large deck area required for the
topsides process and liquefaction trains and associated
equipment, not to mention their weight.

Mooring and heading control


Selecting the most appropriate mooring system is dictated
Figure 3. 2018 newbuild 26 000 m3 IMO Type C jetty moored by the environment, water depth, and riser solution being
50 million ft3/d mini-FSRU. employed – in fact selection of the mooring and riser

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solutions are directly linked, and the number and type of third parties, and the environment are as low as reasonable
risers can drive the selection of the mooring system. For practicable (ALARP).
offshore locations a either a multi-leg spread mooring While the hull designer may refer to classification
system, yoke, external turret, or internal turret (which could society rules to demonstrate the safety of their solution,
be and disconnectable and the FLNG self-propelled) could this must be documented in design and operations safety
be employed. If employed in sheltered waters an FLNG can cases. Specifics relating to the field environment, mooring
be pier/jetty moored or even located in a shoreline ‘notch’. solution and topsides, and subsea interfaces must be
In moderate to harsh wave climates FLNGs must addressed in the hull design safety case documentation.
weathervane into the predominant wave direction to
control roll motion and reduce mooring loads, motion Safety
induced process and offloading downtime, etc. hence a As with the design of any marine artefact the primary
turret must be incorporated. In more benign environments, goals in designing an FLNG are personnel safety
an FLNG can be spread moored so that it is aligned into (including possible de-manning) and asset operability. It
the predominant swell in the knowledge that non-aligned is imperative that the naval architect comprehensively
environments will not significantly increase mooring loads explores the design space in an efficient manner to arrive
or impact on motion induced downtime. If extreme at the safest and near-optimal FLNG design with respect
environmental events such as hurricanes, typhoons, or to integrity and operability, redundancy, etc. Specific safety
floating ice are possible then a disconnectable mooring considerations include:
system and installed propulsion system to facilitate the
FLNG to steam away (or possibly be towed dependent on z Emergency shutdown.
size the attendant ships) may be a desirable solution.
Thrusters can be an integral part of the mooring z Survivability/stability.
solution or only be used to improve the operability of the
FLNG by, for example, maintaining best heading for low z Blast and spill protection.
motions or providing heading control during offloading
operations. If they are an integral part of the mooring z Firefighting and protection.
solution then classification society rules require high levels
of redundancy in the power generation, control and thruster z Access and escape routes.
components. Thruster installations must consider access for
maintenance at sea, as the FLNG will remain on station z Lifesaving and evacuation.
throughout its operational life.
It is imperative that the maintenance and inspection
Regulatory framework strategies, etc. are inherent within the design from the
Most of the major IACS classification societies now have concept phase onwards. To ensure that a coherent and
rules governing the design of FLNGs. near-optimal design is developed it is crucial that the
In nearly all regions of the world, some form of process design team (process, marine, mooring, subsea, operations,
to permit the operation of an FLNG exists, which involves etc.) is fully integrated with an open communication
audit of the design solution as well as its means of culture in which lessons learnt are freely communicated
operation. This is heavily regulated by some national and adopted and driven by an experienced design authority
governments, while others simply accept classification with the skill sets to understand and rationalise all aspects
society approval. The regulations of some countries are of the asset.
prescriptive in nature whereas others are ‘goal-setting’ in
approach and lay down requirements and require an Summary
operator to demonstrate that the risks to the operators, Just as that FPSOs enabled the development of remote
and deep-water oil reserves from the 1970s onwards, it is
obvious that due to their relatively low capital costs and
rapid project realisation FLNG solutions are the technology
catalyst for the successful development offshore stranded
gas fields. Given the recent financial climate growth has
been restrained over the past few years, however, given
the current energy market, FLNG is back in vogue with
five projects sanctioned in the past couple of years and
hence FLNG liquefaction capacity is set to double from the
current 12 million tpy to almost 25 million tpy by 2026,
and a further 16 FLNG projects in pre-FEED.

Disclaimer
The views expressed in this article are those of the author
Figure 4. Author’s design of a condensate and 275 000 m3
and do not necessarily represent those of the organisations
SPB 5.1 million tpy DMR FLNG for an extremely harsh
remote location, offloading to a 137 500 m3 spherical IMO with which he is affiliated and the professional institutions
Type B SS ST LNG carrier. of which he is a member.

28 March 2024
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Eric Farrell, Head of
I
n an era characterised by swift transformations in the
energy sector, the demand for a varied and flexible work
Commissioning at EnerMech, ethic within the supply chain has become more critical than
ever before. It is imperative for the supply chain to showcase
summarises how experience, its agility and adaptability in meeting client requirements.
This emphasis on responsiveness has now evolved into the
expertise, and the right necessity that can expedite and execute projects with both
efficiency and safety.
company ethos are key to This trend is particularly evident in the way countries are
safely and efficiently delivering proactively addressing global developments. They are not only
diversifying their energy sources, but also placing significant
fast-track projects. focus on reducing carbon emissions.

30
PUTTING THE
ELBEHAFEN
TERMINAL ON THE
FAST-TRACK

Germany, for example, has embarked on a major comprehensive understanding of project goals and
undertaking to reduce reliance on Russian gas imports responsibilities. Integrating skilled experts at the outset
through the development of its Elbehafen LNG import maximises efficiency, helps anticipate challenges, and
terminal at the port of Brunsbüttel. enhances the overall quality of the commissioning process.
This underscores the increasing need for a supply chain
that can swiftly navigate these shifts in the energy landscape. Q. What does the Elbehafen project
The commissioning strategy EnerMech OTS has devised involve?
places strong emphasis on early involvement, ensuring that a A. The purpose is to enable the import of large amounts of
team of experienced engineers are engaged, if able, from the LNG as quickly as possible to a country that had no direct
very beginning of each project. This approach enables the access to the LNG market. The long-term establishment
company to work in close co-operation with its client and all of the LNG import terminal will help Germany reduce its
stakeholders, from conceptualisation to execution, ensuring a dependence on Russian energy.

31
Phase one involved the construction of necessary A full commissioning team at Elbehafen has taken the
technical infrastructure at an existing jetty at the port of project from the construction/mechanical completion stage
Brunsbüttel to accommodate an FSRU commissioned by through to operations handover, delivering enhanced
German multinational energy company, RWE, on behalf of the continuity of planning execution, interface reduction and the
country’s government. Work on a dedicated new LNG import project delivery.
jetty is also proposed and expected to begin between
2Q24 –3Q24. Q. What experience and expertise
Phase two will see the new state-of-the-art jetty, which did EnerMech OTS bring to the
will accommodate the FSRU on a longer-term basis, come into table?
operation. The third phase will see gas being fed into a newly A. EnerMech OTS has global experience in servicing the LNG
constructed gas pipeline which will have the capacity to carry industry that has seen the company work across 20 different
7.5 billion m3 of gas, generated from 12.5 million m3 of LNG/y. facilities in a growing geographical spread which includes
Australia, Africa, the Americas, the Middle East, Caspian,
Q. What is EnerMech OTS’ Europe, and Asia – and, as announced in 2023, Canada.
workscope on the Elbehafen The Canadian project was a strategically important win for
project? EnerMech OTS as it looks to increase its foothold as a
A. EnerMech OTS – a strategic partnership alliance specialist services provider for LNG production, storage, and
between EnerMech and Offshore Technical Services (OTS) loading projects. This award further highlights the company’s
– was awarded a contract by Worley for the provision of growing reputation for its capabilities to deliver specialist and
precommissioning and commissioning planning and execution integrated mechanical, electrical and instrumentation services,
services, plus specialist services across the project, such as and equipment to clients in different geographies around
nitrogen (N2) leak testing, flange management, boroscopic the world.
inspection for pipeline cleanliness, and strength testing of the EnerMech’s track record of work spans the asset lifecycle
newly built temporary oil pipeline (the original oil offloading from early engineering to pre-commissioning, commissioning
facility is now being used for LNG import). and start-up, to operations and maintenance and specialist
At the client’s request, EnerMech OTS was involved in all shutdown and turnaround scopes.
the main areas in phase one, including design and The company’s experience and the broad range of services
engineering assistance, turnover, construction and it provides has expanded over the years, equipping us with
commissioning, handover, start up, and operations – meeting the scope to deliver a broader level of expertise and
the requirement for this to be completed within a timescale capability than ever before.
that was ‘as short as possible’. Having this as a solid foundation was key to the
Prior to the contract award, acting on a verbal agreement industry-leading project delivery of this strategically
only, EnerMech OTS demonstrated its competence and trust by important project for Germany.
performing the following:
Q. Where did the EnerMech OTS
z Early systemisation and scoping of the project. LNG story begin?
A. Our legacy as a premier provider of integrated specialist
z Development of completions management system services in the LNG market stretches back over the last
database, complete with construction and commissioning 15 years and has its roots in Australia, which led the way in
completion inspection test records (ITR). large scale global LNG projects.
The Gorgon and Wheatstone LNG developments
z Commissioning schedule and detailed plan. offshore Western Australia were two early flagship projects
which continue to supply gas to Australia’s domestic
market and exports to China, India, Japan, and South Korea.
The company’s legacy from working on Australian
mega-projects helped introduce its services and expertise
to the global LNG market, and this has continued to thrive
due to EnerMech’s toolbox of speciality services and
integrated approach, allied to its ability to quickly ramp up
activity as required by the Market Tier 1 contractors.

Q. What needs to be taken into


consideration when fast-tracking
projects?
A. Fast-tracking a project requires much more than just
pulling the timeline forward. Fast-track projects require
specific advance planning followed by detailed execution
to avoid problems regardless of the reduced timescales
and teamwork is essential to ensure project delivery at a
safe, accelerated pace.
Figure 1. Elbehafen LNG import terminal is being fast-tracked with This means the ability to mobilise quickly with a team
EnerMech’s help. that has the specialist skills required, who can be

32 March 2024
adaptable and flexible in responding to emerging needs and all parties within the project have complete understanding
demands of clients and the ability to fulfil a wide variety of and buy-in to daily activities
requirements through a broad range of specialist capabilities. The fast-paced approach employed by the team
The partnering and trust though EPC is led by leadership highlighted the importance of collaboration and proactive
commitment and action, setting the tone for the company’s involvement. In contrast to becoming delayed in the workings
can-do approach, common purpose and shared motivation. of contractual documentation, which in some cases does not
lend itself to efficient work, the team proactively championed
Q. What is the EnerMech OTS a basis of trust with the client. This resulted in the
approach to fast-tracked projects? achievement of a shared goal, thereby successfully realising
A. We see communication, co-operation, and co-ordination the milestone of the first gas import.
as the backbone of safe and successful project completion. As a result, team members were commended by the client
Project quality and HSE are equally critical in the delivery for their technical knowledge and also for their ethos and
process, and this came to the fore at Elbehafen with a 100% approach to the project.
safety record with EnerMech OTS incident and injury free.
Achieving this safety record emphasised the importance of Q. What can we expect in the
good communication and ensuring proven and experienced future?
individuals were in place for the more challenging aspects A. The demand for LNG is on a strong upward trajectory as
of the work. Accident risks increase when unplanned countries around the globe seek alternative forms of energy as
modifications to the schedule and congestion problems occur they move towards the energy transition. Germany’s example
therefore underlining the need for meticulous early planning in fast-tracking its access to LNG through the Elbehafen
and dedicated reporting at all times. project is a clear indicator that governments are prepared to
make significant investment into the development of their
Q. How important is good teamwork LNG capabilities.
in a project? Clearly, there is an appetite to move projects forward at
A. It is absolutely crucial. For example, different teams might pace. As an experienced contractor with a solid pedigree of
be working in areas simultaneously, which could lead to an LNG projects successfully completed over many years, coupled
increase in safety risks. That means it is critical that managers with its expertise and capability of handling fast-tracked
and teams communicate well to mitigate risk and ensure safe projects worldwide, EnerMech OTS is well-placed to support
working conditions. Commitment to simultaneous operations the development of these strategically important
workshops and risk assessment creation is essential to ensure developments around the globe.
Since February 2022, LNG has become an even more vital component
in the global energy mix as energy security climbs the agenda.
Jose Navarro, Lloyd’s Register’s Global Gas Technology Director,
addresses some of the pressures being put on safety as a result of
the rapid expansion of LNG.
ethane is fundamentally stable. In appeared on the scene, ordering ships on spec and prepared
fact, among the gases covered by the to deploy their new vessels on medium, short, or even spot
International Code of the Construction contracts. The returns can be spectacular, with day rates well
and Equipment of Ships Carrying Liquefied Gases in Bulk into six figures when market conditions are tight.
(IGC Code), LNG is actually one of the safest. As a liquid – at Recently, global energy concerns have turned the heat up.
-163˚C – it is completely safe provided that it is properly LNG exports from major producers including the US, Qatar,
contained and managed. So, thankfully, accidents involving and Australia are climbing fast. New LNG producers are
LNG carriers, which ship methane by sea as a liquid, are rare. joining in as consuming nations ramp up their import capacity,
Historically, the sea transport of LNG was not a typical commissioning new floating terminals that can be brought
shipping market. Ships were built and made available on into operation far more quickly than shore-based facilities.
long-term contracts linked to specific LNG supply contracts.
There was no spot charter market for LNG carriers: long-term Dramatic fleet expansion
rates were fixed in advance and only adjusted with small Increasing demand has driven exponential fleet expansion.
annual escalations written into contracts in advance. For many years, the world fleet of LNG carriers was
Over the last decade, however, the LNG market has relatively stable at around 400 ships. Over the last five years,
changed beyond recognition. A new generation of owners has this has risen sharply to around 700 vessels. With the

The impact
LNG
34
Figure 1. LNG tanker at sunset.

of rapid
growth
35
current orderbook at record levels, this will add another 400 the construction process – from the appraisal and approval of
ships over the next few years – the specialist yards that build individual components right through the build to the
these highly sophisticated ships are full until around 2028. finished product.
Rampant demand for LNG carriers has attracted a number
of new construction yards, with others preparing to join in. Safe management
And, despite the fact that shipyards in Europe, including LNG is inherently safe but, if it is not properly contained and
Navantia in Spain and Chantiers de l’Atlantique in France, managed, it is extremely dangerous. If there is a source of
have built LNG carriers in the past – ships that have operated ignition, for example, even several hundred metres away from
safely and successfully throughout their lives – the new yards a leak, there is a high risk of flash-fire and explosion.
are all in Asia, specifically China. So, recent developments indicate that there are new safety
It is worth noting that not everyone is comfortable that implications relating to the transport of LNG by sea. As the
the newcomers have the expertise equivalent to the number of vessels is already rising quickly and set to
old-timers. Careful oversight is essential and the role of accelerate in the years ahead, a new generation of LNG
leading classification societies with expertise in this sector seafarers will be required to take control of these vessels.
cannot be underestimated. This is important at every stage of There will be a combination, therefore, of new shipyards
building some of the world’s most sophisticated ships and
potentially quite unfamiliar seafarers operating them. An
actuary would inevitably conclude that the probability of a
major incident is bound to increase.

Rising ship prices


LNG builders hold the whip hand in the present market
because demand is strong but yards are full. No surprise,
then, that ship prices have risen sharply. At less than
US$180 million for a typical 174 000 m3 vessel during COVID,
prices have climbed to more than US$260 million for an
equivalent vessel today.
This is a positive development in some ways because
some standard ship specs now include what would previously
have been optional extras. Features such as shaft generators
or air lubrication systems may be included as standard.
However, higher prices mean higher day rates, and ultimately
owners must be able to offer charter deals that are
competitive in the market.
The choice of main engine could potentially provide a
safety and sustainability issue. Two-stroke, diesel-cycle,
high-pressure injection engines offer the best performance,
with lower fuel consumption and emissions than other engine
types, but they are more expensive because of the additional
equipment required for the fuel gas handling system.

Methane emissions
The issue of methane emissions should also be
highlighted. This is a growing focus for regulators
(notably in Europe) because methane is many times
more pollutant as a greenhouse gas than carbon dioxide.
International Maritime Organization (IMO) carbon intensity
regulations do not yet include methane in ship cargo intensity
Figure 2. Lloyd’s Register serveyor inside an LNG tank. assessments but will do so later this decade. Dual-fuelled
diesel-electric LNG carriers will be in the firing line because
emissions from four-stroke engines are higher than those of
two-stroke units.
This can be compensated to some extent by measures such
as the installation of pre-combustion carbon capture systems
where hydrogen is separated from the methane in boil-off gas
(BOG) and injected into the engine at a rate of about 25%. It
will also be possible to ensure that engines operate at their
most efficient level by using batteries, for example, to
compensate for the peaks and troughs of varying ship loads.
The Methane Abatement in Maritime Innovation Initiative
(MAMII), led by the Safety Accelerator and established by
Figure 3. LNG tanker passing by the Strait of Singapore. Lloyd’s Register, is already making significant strides in

36 March 2024
addressing the methane challenge.1 With a number of
high-profile LNG sector participants, the project is focusing on
new technologies that will monitor and mitigate methane
emissions through a variety of initiatives.
Meanwhile, for the 240-odd steam turbine-powered LNG
carriers, methane emissions are not an issue. However, from
an environmental point of view, their poor fuel performance
has significant implications for carbon intensity ratings. In
fact, experts have suggested that all steamers will fall into
MAY 7-9, 2024
the two ‘unacceptable’ categories under the IMO’s VANCOUVER CONVENTION
Carbon Intensity Indicator rating system. CENTRE,VANCOUVER, CANADA
There are technical measures that can be taken, such as
retrofitting dual-fuel engines with Power Take In (PTI) to the
shaft or installing reliquefaction units to handle excess BOG.
However, many of these steamers are already quite old and
the substantial investment that would be required could be
difficult to justify in terms of a satisfactory payback.
It is likely that these ships will be steadily phased out as
new ships join the fleet. As well as fleet expansion, that will
drive significant demand for fleet replacement – a further
pressure on LNG construction capacity.

Operational issues
There is concern regarding two specific aspects of ship
operation that can generate safety issues. The first of these
CANADA’S
ONLY EVENT
is cargo tank filling levels. Prior to the publication of the
IGC Code in 2014, LNG carrier operators were accustomed to
filling cargo tanks to a level of 98.5%.
The revised code required additional measures to load

DEDICATED
tanks to more than 98%, but these requirements only applied
to new ships. There are now steps that can be taken to load
tanks to 99% or even 99.5%.
Operators of older ships have looked for ways to compete

TO GAS
on tank filling levels – the additional revenues from slightly
higher cargo volumes can total millions of dollars a year for
their cargo-owning customers. The result is a large number of
LNG carriers with tank levels up to 99.5%.

INDUSTRIES
This reduces ullage but also cuts safety margins. Crews
have less time to take action and prevent an overflow of
cargo. The risk of an incident is likely to increase.
However, this issue is being addressed by the Society of
International Gas Tanker and Terminal Operators (SIGTTO). The
society is currently working on a new set of requirements
which will apply to all LNG carriers across the entire fleet,
regardless of age.
A second issue of concern is that as strong day rates make
ship downtime more expensive, owners do not want to take

SCAN TO BOOK
ships out of service for the usual five-year survey but would
rather keep them in operation beyond this cycle, thereby
extending the cargo tank entry period.
This should not necessarily be seen as a reduction in YOUR STAND
safety, but nevertheless poses an extra challenge for ships’
crews as they carry out maintenance and certificate renewal
during routine ship operation, rather than when the ship is
under repair in a drydock. Seen in another light, however, the
result and quality of a ship’s overhaul undertaken while a ship
is operating cannot possibly be as sound as one undertaken
in dock.

References canadagaslng.com
1. Methane Abatement in Maritime Innovation Initiative,
https://mamii.org
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The LNG carrier segment is recognising the need for improved vessel
and fuel efficiency – clean technology can meet those needs today
and in the future, says Alistair Mackenzie, Chief Commercial Officer
at Silverstream Technologies.

T
he global LNG carrier fleet is expected to exceed is fertile ground for newbuild efficiency improvements. Both will
1000 ships in the ocean by 2026. This includes be achieved through the implementation of clean technology.
300 new LNG carriers over the next three years, as Silverstream Technologies’ air lubrication system (ALS), the
demand for natural gas grows to fuel decarbonisation efforts Silverstream® System, is one such solution. It releases a carpet
across the world. of air to reduce the frictional resistance between the hull and
The existing LNG carrier fleet presents strong opportunities the water, reducing average net fuel consumption and
for vessel fuel efficiency retrofits, and the impending orderbook greenhouse gas (GHG) emissions by 5 – 10%.

39
Silverstream’s technology is uniquely suitable for both carrier installations. Six of the undisclosed orders are for retrofit
retrofit installations and newbuild vessels. It is a proven projects taking place between 2023 – 2025, and four are for
lifecycle solution for efficiency, with class-approved newbuilds which will be delivered between 2026 – 2027.
components that are designed to last the lifespan of a vessel. Meanwhile, back in January 2023, the company signed an
This means it can deliver fuel burn and GHG emissions agreement with CSSC Jiangnan Shipyard Group Co. Ltd to
reductions today, while futureproofing assets for shipping’s supply the ALS to six 175 000 m3 LNG carriers which form part
longer-term efficiency and decarbonisation drives. of the newbuild LNG carrier programme being constructed for
The system is applicable to all shipping segments and is Abu Dhabi National Oil Company (ADNOC).
effective in all sea states, but it is particularly well suited to the The company also signed an agreement with
LNG carrier segment as these vessels have a large flat bottom China Merchants Energy Shipping in January 2023 to install
that maximises the system’s ability to reduce friction. It the system on four 175 000 m3 LNG carriers being built at
reduces average net fuel consumption and emissions for LNG Dalian Shipbuilding Industry Company (DSIC). The installations
carriers by 7 – 10%, which typically equates to a 1 MW net will take place over the next two years, with work expected
power saving. Plus, it is important to remember that reducing to be completed by the end of 2024, in line with DSIC’s
fuel burn not only lowers emissions, but also cuts fuel costs for building schedule.
ship operators.
The system can also help to reduce LNG boil-off and Shipyard collaboration
increase delivered cargo volume, or cut fuel consumption and With LNG carrier orders booming in recent years, owners are
associated emissions, depending on the operator’s commercial working with shipyards worldwide on construction – including
and sustainability priorities. This is because ALS can be used in Asia. Additionally, with shorter lead times available,
either to enable vessels to travel at higher speeds for the same shipowners may be driven to ordering from Chinese shipyards
fuel consumption, or to cut fuel consumption and emissions for the first time, in order to get their new ships earlier and
without sacrificing speed. leverage the high LNG shipping rates.1 In 2022, there were
According to VesselsValue data, the value of the 162 LNG a record 180 vessels contracted from Chinese and Japanese
newbuilding orders placed in 2022 reached US$33 billion, shipbuilders alone.
leaving a huge orderbook of assets that must all be effectively The Silverstream team collaborates with a growing number
managed through shipping’s energy transition to retain their of LNG carrier and other shipyards in the Asia-Pacific (APAC)
value. The world is at a critical point in time for adopting clean region and beyond. This includes Jiangnan Shipyard, China
technology; there is a real and present danger of stranded Merchants Energy Shipping, CSSC and China Merchants Group,
assets, and the incentives and disincentives for improving Malaysia Marine and Heavy Engineering (MMHE),
vessel efficiency are incrementally gaining more weight. Dubai Drydocks, and Seatrium. The company also has an
Looking specifically at evolving industry regulations, the agreement in principle for its technology with the China
EU’s Emissions Trading System (EU ETS), FuelEU Maritime, and Classification Society. In April 2023, Silverstream also signed an
the International Maritime Organization’s Carbon Intensity agency agreement with Orient Marine to facilitate the export of
Indicator (IMO CII) are, in a nutshell, all set to enhance the its technology to Japan.
value of proven fuel efficiency solutions. The LNG carrier This growing relationship with APAC shipyards and other
segment in particular has recognised this, and has been putting stakeholders is a direct result of the company’s Shanghai office.
its commercial weight behind air lubrication technology, such Shipyards now have a good understanding of the system and
as that offered by Silverstream. how to quote installation projects accurately. These
partnerships are critical to Silverstream’s operations, and also
LNG carrier efficiency investments for scaling clean technologies more broadly, as they bring local
At the time of writing (February 2024), there are 196 vessels expertise and third-party validation into the process of
contracted to have the Silverstream’s technology installed installing solutions.
across all shipping segments, with 63 systems in-service Most clean technologies can be efficiently fitted during the
today. 37 of the current orders are for LNG carriers and there vessel build phase, and some can also be efficiently retrofitted.
are currently 13 systems already in-service on LNG carriers On the retrofit front, Silverstream has been working with
today. Customers include Carnival, MSC, Maersk, Grimaldi, shipyards to install during pre-existing scheduled dry dock
Shell, Vale, Knutsen, and ADNOC L&S, amongst other major periods. For example, the retrofit could be done at the vessel’s
industry names. first drydock for LNG carriers, which is normally five years
Most recently for the LNG tanker segment, in after delivery.
August 2023, the company announced 10 new orders for LNG These relationships also reinforce global supply chains –
which are key to commercialising clean technologies in an
international industry. Despite the supply chain challenges
affecting many other companies, Silverstream has never failed
to deliver a project on time. The company believes its ALS can
become a standard application on all newbuild vessels in the
global fleet, as well as a go-to retrofit option, and is realistically
targeting 500 orders across all vessel segments by 2025.

Futureproof solutions
Ship owners and operators are increasingly recognising
Figure 1. A rendered example of the Silverstream® System. that clean technologies will play a significant role in

40 March 2024
decarbonisation today, but it is also important to recognise
2024
how they will evolve over the lifespan of a vessel. When
planning for the energy-transition long-term, a proven full OPERATIONS CONFERENCE
lifecycle solution for efficiency must be the focus.
With this in mind, shipping will have to change its clean SEATTLE, WA • APR 30–MAY 2
technology outlook. Currently, technology – whether physical HYATT REGENCY SEATTLE
or digital, traditional or innovative – is generally seen as a
means to fulfil the requirements of today, not to anticipate the
future. However, data and digitalisation are already driving the
evolution of Silverstream’s technology and will continue to do The American Gas Association’s annual Operations Conference
so into the future. is the natural gas industry’s premier networking event. Put
When it comes to data and digitalisation, the shipping yourself among the industry’s thought leaders to collaborate,
industry is following the well-trodden route of other sectors
exchange leading practices, and drive innovation that promotes
that have effectively integrated technology and leveraged its
potential to advance their businesses. Shipping now broadly the safe, reliable, and cost-effective delivery of natural gas.
recognises the importance of the digital journey and the
Register at www.aga.org/events for this two-day event, which
potential of data. It is no longer a matter of whether the
industry will embrace digitalisation and data but, rather, when will provide opportunities to learn from your industry peers
and how rapidly it will do so. with over 120 presentations focusing on the following topics:
So, how can data and digitalisation ‘level up’ clean
technology? Firstly, looking at the company’s ALS, it already Engineering
delivers fuel efficiency and reduces carbon emissions across Emergency Management & Public Safety
every vessel it is installed on. However, it is important to
Gas Control
accurately calculate, measure, and report the precise efficiency
level and decarbonisation impact. Consequently, monitoring Gas Utility Management
and measuring performance data, as well as system health, is Hydrogen
already becoming an integral component of the system.
Integrity Management – Distribution & Transmission
Secondly, the integration of an ALS within the vessel’s
ecosystem provides unparalleled insights into a ship’s Measurement – Distribution & Transmission
hydrodynamic performance. Data from the company’s system Pipeline Safety Management Systems
can be harnessed, as well as multiple sensors around the Piping Materials
vessel, to gain an in-depth understanding of air lubrication
Renewable Natural Gas
technology and identify factors that could influence the ship’s
overall performance. Underground Gas Storage
In basic terms, data can and will be used by clean Worker Health & Safety
technology manufacturers to raise both the floor and ceiling
Workforce Development
of fuel saving potential. Like the intelligent systems within
modern cars that tune the vehicle’s engine as it drives, …And More!
maritime clean technologies will learn and respond to their
environment and operate in a way that ensures For questions, contact Allison Hartle at ahartle@aga.org.
maximum efficiencies.

Conclusion
In summary, with the LNG carrier segment growing, there are
increasing opportunities to adopt vessel efficiency solutions
such as clean technologies. With the emissions reductions
and the fuel cost reduction benefits clear, this represents a
win-win-win for shipowners, operators, and clean technology
providers. Plus, with the changing regulatory and market
landscape starting to support cleaner vessels and punish
polluters, the time is right to adopt these efficiency solutions.
As well as the LNG carrier segment, the APAC market is
generating opportunities for both retrofits and newbuild
installations of clean technologies. Finally, it is important to
view clean technologies as a longer-term efficiency solution
that will evolve alongside shipping’s energy transition and
improve efficiency across the entire lifespan of a vessel.

References
1. WILLMINGTON, R., ‘LNG carrier newbuilding orderbook hits
59% of the existing fleet in service’, Lloyd’s List, (12 July 2023),
https://lloydslist.com/LL1145871/LNG-carrier-newbuilding-
orderbook-hits-59-of-the-existing-fleet-in-service

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With its increased focus on environmentally-friendly designs
and operations, the global LNG carrier fleet has accepted boil-off
gas management systems as the de-facto standard for today’s
LNG carrier designs. Pål Steinnes, Heads of Sales and Business
Development for Midstream and LNG, Wärtsilä, Norway, examines
developments that have been made for enhanced flexibility and
efficiency of cargo management on LNG carriers.

O
ver recent decades, natural gas has become a vital cryogenic temperature level required to maintain the
energy source for the world. Even though much of cargo in a liquid state.
it is carried through pipelines, a significant portion
is still liquefied and transported across the globe on Boil-off gas management
purpose-built LNG carriers. As the LNG trade consists of different parcel sizes and
Since LNG has a boiling temperature of around -163˚C, ships, different concepts are applied for different trades,
one of the main challenges when transporting LNG is the but all large-size LNG carriers (> 40 000 m3) are fitted

43
with containment systems that allow an operating gas is combusted rather than being released into the
pressure only slightly above atmospheric. Therefore, atmosphere. Nevertheless, natural gas combustion is still
handling the boil-off gas (BOG) generated as a result a source of carbon dioxide (CO2) emissions, and, unlike
of heat ingress created by the temperature difference combustion on propulsion or generator machinery, pure
between ambient surroundings and the cold cargo is combustion is a waste of both valuable cargo and pure
one of the biggest operating challenges onboard LNG energy without any returns.
carriers. Venting of natural gas to the atmosphere results As a result of this, all modern LNG carriers being
in direct emissions of greenhouse gases and is therefore designed today are fitted with BOG management systems.
prohibited, except as an absolute last safety-measure in These enable safe handling of unused or excessive BOG to
emergency situations. maintain safe pressure levels in the cargo tanks, while
As a climate-friendly fuel, the majority of BOG is also serving the cargo owner’s interest by minimising
utilised for the ship’s propulsion machinery or power valuable cargo and energy-losses throughout the voyage.
generators, which is also an efficient way of managing the
cargo tank pressure levels. However, as ships have various BOG reliquefaction
operational scenarios with different consumption modes, Managing BOG onboard ships can be achieved by different
and are exposed to different ambient conditions, tank technologies or methods, which are typically based on
pressure management is a daily requirement on LNG the specific design of the vessel. However, the preferred
carriers. Previous generations of ships disposed of technology is often a direct BOG reliquefaction system,
excessive BOG in gas combustion units, where the natural since this can recapture BOG in a more controlled
manner than the alternatives. BOG reliquefaction
also enables synergistic effects with the onboard
machinery, as the core principle is the removal of
BOG from the cargo tanks through compression by
existing LD compressors. These compressors are
already being used as fuel compressors, thus there
is no need for additional machinery to operate the
system. This treatment also enables a steadier and
more controlled vapour space, as the process does
not increase the risk of additional vapour generation
caused by introducing new variables that can change
the dynamics within the cargo tank. It also prevents
the accumulation of non-condensable components to
form pockets in the vapour space. This is a common
challenge with comparable technologies, leading
to unmanageable pressure increases or derated
operation of other machinery.
Downstream of the LD compressors, the
compressed BOG is treated by the reliquefaction
plant by being recondensed back to a liquid state
Figure 1. The newest reliquefaction modules by WGS are robust, easy before it is returned to the tank bottom. This allows
to operate and provide unmatched efficiency.
the entire composition of cargo to be properly
mixed. It also utilises all the cold energy present in
the liquid stored in the cargo tanks to achieve a
uniform and stable distribution of the LNG.
A direct BOG reliquefaction system also works
independently of filling levels in the cargo tanks,
making it the optimal system during both laden and
ballast voyages. This is because the vapour
management and the effect it has on the dynamics
of the cargo tank, is not affected at lower filling
levels, thereby ensuring predictable performance
during all the different phases of the vessel trade.
Despite its critical functionality to maintain a
safe and cost-efficient trade, the cooling and
liquefaction of natural gas is traditionally an
energy-demanding process, and therefore a large
contributor to the overall energy consumption of the
ship. The combination of being able to meet more
stringent requirements for a greener and more
environmentally friendly trading profile, and
Figure 2. The global LNG carrier fleet is continously renewing itself technological developments that address both
and looking for the most energy-efficient solutions. maintaining a safe and carefree operation for the

44 March 2024
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crew onboard, while at the same time reducing energy compressors leads to the cold energy stored in the BOG
consumption, has obvious attraction. being rejected to the vessel’s central cooling water
system, and thus the potential is wasted. The enhanced
A real-life voyage from operational integration that can be applied in the Compact Reliq takes
experience to the development of advantages of the cold energy in the BOG by absorbing it
new technology into a purpose-made thermal liquid able to withstand
With more than 60 years in designing cargo handling cryogenic temperatures by preheating the BOG prior to
systems onboard gas carriers, and more than 20 years compression. This liquid is then returned to the
of design and operational experience of LNG BOG refrigeration plant to contribute to the reliquefaction
reliquefaction systems, Wärtsilä Gas Solutions (WGS) is process, resulting in the beneficial combination of
specifically geared to take on the challenge of developing increased capacity and reduced energy consumption.
an efficient and reliable reliquefaction system suited for Without this particular feature, conventional BOG
the most modern and state-of-the-art LNG carriers. management technologies operate with a specific efficiency
Relying on design and operational experience from a of around 0.9 – 1 kg/kWh, while the Compact Reliq can
wide range of technologies and capacities, WGS has drawn operate at a specific efficiency of abt 0.6 kg/kWh. For a
from its experience with the reversed Brayton cycle, the normal LNG carrier this can trigger savings of up to
most robust and reliable refrigeration technology. 500 kWh, while specifically designed vessels can gain a
Previous system designs were picked apart, evaluated saving of up to 900 kWh. Based on the operating profile of
piece-by-piece, and ultimately put together in a new and the vessels, energy savings of this scale will enable direct
improved product portfolio, the Compact ReliqTM. cost savings for owners, operators and charterers of up to
The main features of the Compact Reliq are that it several hundred thousand US Dollars every year. In addition
relies on pure commercial grade nitrogen as the to the immediate cost savings that can be harvested from
refrigerant. Nitrogen has the advantage of being an inert simply using less fuel, reductions in fuel consumption also
gas, making it easy to handle, transport, refill and store result in a significant reduction of CO2 emissions, which
onboard the vessel. This makes it safe for the crew and have a direct impact on the EEXI and CII ratings of the
easily available as a consumable for re-stocking. Nitrogen ships. EEXI and CII ratings are seen as one of the most
is also a cryogenic gas, which makes it an optimal important parameters in evaluating a vessel’s
refrigerant, since the process does not rely on phase competitiveness and compliance today.
change. It is therefore more versatile, flexible, and robust
during operation compared to other refrigerants that rely Looking to the future
on phase-change for efficiency, which greatly narrows the Looking at the demands from virtually all industry
operational flexibility. stakeholders today, the top priority is to reduce emissions
The Compact Reliq also features state-of-the-art and achieve more environmental voyage profiles. WGS
technology, with conventional bearings being replaced is committed to contributing to these critical targets. By
with active magnetic bearings. This technology prevents developing a robust and reliable reliquefaction system
excessive vibration and significantly reduces wear, tear that is smoothly integrated with existing designs without
and replacement intervals, as the rotation is contactless, the need for additional equipment, safety and reliability
which also keeps lifecycle costs to a minimum. In addition, throughout the trade is ensured. In addition to achieving
all stages of the compression and expansion are placed a level of efficiency that has previously not been seen
on a single shaft, thus eliminating several components on these applications, it is also designed in a compact
and functionalities that have proven to require frequent and robust way with a minimised footprint to ensure
maintenance on previous systems. trouble-free integration and installation. It is not only
The rotating equipment is also fitted with variable easy to install on a newbuild vessel, but is also well
speed drives. Combined with the high-speed rotation suited for retrofitting on existing vessels. By elevating the
achieved by the active magnetic bearings, turn-down of environmental profile of the current fleet, it ensures that
the system is easily achieved without compromising the older vessels can be operated for years to come, which
efficiency of the system. Such a functionality is seldom is an obvious advantage. The Compact Reliq is, therefore,
applied on other BOG management systems, but it offers considered to be the optimal and most fit-for-purpose
greater operational flexibility. The system can be adjusted reliquefaction configuration for both the existing and
to the actual loads required during different scenarios next generation modern LNG carriers. It ensures that
with regards to overall fuel consumption and the global fleet is fitted with the most advanced and
environmental conditions, whereas conventional systems environmentally-friendly technology available.
have a limited capacity adjustment functionality. To date, the company has secured deliveries of the
As the overall concept is still BOG reliquefaction Compact Reliq technology to 20 top-modern and
technology, the core of the process is still based on state-of-the-art LNG carriers, where some have already
integration with the existing LD compressors for minimum been in operation for more than a year. With an exciting
interference and design changes to the remaining ship demand outlook for LNG carriers in the years to come,
design. The integration itself, however, has now been combined with the need to reduce emissions throughout
elevated to a new level, drawing on a patented the current value chain, it is believed that this is only the
technological concept by WGS, where the system design start of the journey towards increased efficiency and
can take advantage of the cold energy available in the flexibility for cargo operations and BOG management
BOG. Conventional integration with existing LD onboard LNG carriers.

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...ON CHINA

15FACTS
Most of China’s LNG imports in
2023 came from Qatar, Australia,
and Malaysia

China has the most international borders, neighbouring


China is expected to 14 countries: Afghanistan, Bhutan, India, Kazakhstan,
Kyrgyzstan, Laos, Mongolia, Myanmar, Nepal,
see a 5% rise in LNG North Korea, Pakistan, Russia, Tajikistan, and Vietnam
demand for 2024
China alone
China is now the
will add over
China is expected to account
50 million tpy of
second-largest
for approximately 35% of Asia’s
regasification
re-exporter,
total regasification capacity
capacity in 2024 after Spain
additions by 2027

Zhoushan II terminal will be the largest Chinese brides


Chinese contributor to China’s regasification wear red instead
New Year capacity addition by 2027, and is of white; red is
celebrations anticipated to begin operations in 2025 considered to be
with a capacity of 292 billion ft3
last for 15 days a lucky colour

China has the highest number of UNESCO sites


The mortar used to
in the world
bind the Great Wall’s The Forbidden City The Yangtze River
stones was made in Beijing has 9000 is the longest river
with sticky rice rooms in total in China, and the
continent of Asia
China imported
8.2 million t of LNG Chopsticks were
in December 2023, originally used for
the highest since
cooking, not eating
January 2021 (Kpler)

48 March 2024
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