The emerging role of LNG for OSVs: The facts about LNG-fuelled vessels

TERJE NORDTUN Wrtsil OSJ Conference 15-16 February 2012

Wrtsil

Factor trends: Environment

Factor trends: Environment

LOCAL

LOCAL

NOx
LOCAL

Acid rains Tier II (2011) Tier III (2016)

SOx
GLOBAL

Acid rains Sulphur content in fuel

Particulate matter

Direct impact on humans Locally regulated

CO2

Greenhouse effect Under evaluation by IMO

Emission Controlled Areas

Established Emissions Controlled Areas Emissions Controlled Areas under consideration

Factor trends: Fuel Availability and Prices

35
LNG Japan average [USD/MBtu]

30 25 USD/MBtu 20

NG Henry hub [USD/MBtu] HFO 380cst Rotterdam [USD/MBtu] MGO Rotterdam [USD/MBtu]

15 10 5

0
O ct -0 Fe 1 b0 Ju 2 n0 O 2 ct -0 Fe 2 b0 Ju 3 n0 O 3 ct -0 Fe 3 b0 Ju 4 n0 O 4 ct -0 Fe 4 b0 Ju 5 n0 O 5 ct -0 Fe 5 b0 Ju 6 n0 O 6 ct -0 Fe 6 b0 Ju 7 n0 O 7 ct -0 Fe 7 b0 Ju 8 n0 O 8 ct -0 Fe 8 b0 Ju 9 n0 O 9 ct -0 Fe 9 b1 Ju 0 n1 O 0 ct -1 Fe 0 b1 Ju 1 n11
Sources: www.lngoneworld.com, www.bunkerworld.com, LR Fairplay

Potential saving in fuel cost by LNG powering

1.150.000 USD annually (36% lower than MGO operation)

(based on 950 USD/t for MGO and 630 USD/t for LNG)

Gas burning technologies

GAS-DIESEL (GD) DUALFUEL (DF)

1987

1992

1995

SPARK-IGNITION GAS (SG)

Dual-Fuel applications - References

Power Plants

Merchant

Offshore

Cruise and Ferry

Navy

DF Power Plant 51 installations 186 engines 2600000 rh Online since1997

LNGC 89 vessels 353 engines 1900000 rh Conversion 1 Chem. Tanker 2 engines conv. Complete gas train Complete design

PSVs/FPSOs 17 vessels 87 engines Online from 1994 New orders: Harvey Gulf; the first 3 LNG-PSV to be operated in the Gulf of Mexico!

LNG ferries 1+1 vessels 4 engines per vessels Complete gas train 2800 passengers In service in 2013

Costal Patrol Coming

4 segments

>150 installations

> 5000000 running hours

Dual-Fuel advantages
Main advantages of the Dual-Fuel 4-stroke engine compared to SG: Redundancy, backup without interruptions in power or speed. Able to operate on liquid fuel outside ECA-area Simple system, no PTI/take me home or double gas system needed. DP class fulfilled with single tank/gas supply system Vessel re-routing possible, gas supply not a limitation

Emission advantage

-25%

Emission values [%] 100 90 80 70

-85%

60 50 40

CO2 NO
x

-100%
SOx

30 20

-100%
Dual-Fuel engine in gas mode

10 Diesel engine 0

Particulates

Methane slip

Methane slip status

THC = 6 g/kWh corresponds to 8-10% reduction in GHG compared with MDF operation

LNG system in Principal

LNG filling line Tank room

Pressure build-up circuit

Stop and Master valve

Evaporator LNG tank

Water /glycol Gas Valve Unit

Offshore supply vessel arrangement

LNG-Fuelled OSVs in Operation February 2012

All equipped with Wrtsil DF engines

Viking Energy - 2003

Stril Pioneer - 2003

Viking Queen - 2008

Viking Lady - 2009

Skandi Gamma - 2011

Normand Arctic- 2012

LNG Fuelled OSVs on order with Wrtsila DF engines

2 x PSVs for Eidesvik Offshore

1 x PSV for REM Offshore 4 x PSVs for Harvey Gulf

Conclusions The facts:

LNG is an environmental friendly fuel reducing shipping emissions Use of LNG as fuel will also reduce fuel cost Wrtsil has proven solutions for complete LNG propulsion systems including storage and handling onboard ships Application of DF engines gives high flexibility and redundancy and is the preferred solution for OSVs The Wrtsil DF technology is well proven with more than 5.000.000 accumulated running hours

WARTSILA.COM