TanselERKMENPIRIREISUNIVERSITY

Challengeswithbuildingquaysandje?esinLNGbunkeringinfrastructure.

LNG – Liquefied Natural Gas

• Natural gas is cheaper and cleaner (> 10KWh/m3). • Minus 161 0C it condenses into colorless, odorless, non-toxic, non-

corrosive and non-carcinogenic liquid. • Occupies only 1/600 of the volume of its gaseous state • Natural gas is measured in MMBtu3. • The first LNG plant was built in West Virginia in 1912.

HUGE Environmental Benefit

In comparison with heavy fuel oil, natural gas has a much smaller impact on the climate, the environment and health.

Emission Control Areas (ECAs)

LNG supply chain consists of

1.  exploration, 2.  production, 3.  liquefaction, 4.  shipping and storage together with regasification.

•  The number of LNG importing countries has tripled

over the past 15 years.

• Recently, a total of 7 new regasification terminals were

completed worldwide.

• Three of these were onshore terminals: •  in Japan (Hachinohe and Shin-Sendai) and Indonesia (Arun, which was

converted from a decommissioned liquefaction plant).

• The other four were FSRUs completed in new LNG markets: •  in Egypt (Ain Sokhna BW and Ain Sokhna Hoegh), Jordan (Aqaba)

and Pakistan (Engro).

LNG Terminals

LNG Trade Volume, 1990–2015

Total worldwide LNG Pipeline Projects

LNG Markets and Terminals

The LNG regasification capacities in Europe represent approximately 20% of world capacity,

Global LNG Supply

Global LNG Demand

LNG Receiving(Demand) Capacity by Status and Region

What factors will impact short-term LNG activity? •  Supply-demandfundamentalswillcon4nuetoadjust.• Reducingtheneedforenergy,includingnaturalgas.• Overcommi>edintermsofcontractedLNGrela4vetodemand.•  Severalemergingmarketcountriesdemandincreased•  Thesenewimportersarelessestablished•  Inter-fuelcompe44onwithcoal,andtosomeextentoil.•  Lowoilpriceshaveresultedinlowoil-linkedLNGcontractprices.•  lowerLNGprices

LNG in Shipping

LNG BUNKERING

Logistical aspects on LNG bunkering solutions •  Ship-to-ship(STS)bunkering

•  Thetanktruck-to-ship(TTS)bunkering

• Bunkeringdirectlyfromterminal-to-shipviapipeline(TPS),

INVETSMENT- Long-term supply contracts for large volumes needed to justify investment

Challenges-1 Uncertainty of LNG

•  Es4matesoffuturefuelprices

•  Thepricetagfortheinfrastructure

•  Thebusinesscasesensi4vewithregardtothees4matedpayback4me.

•  Inaddi4on,shorterpayback4mesaregenerallydemandedwhentheuncertain4esaregreater.

Challenges- 2 From an economic and financial point of view, the following recommendations are provided:

•  ThepricetagforLNGinfrastructureIRRbelow12%-8years

•  investmentsto“cri4calminimum”level• Businesscasesorplansforspecificinvestmentprojects•  ThedevelopmentofthelocalmarketforLNG,• Possiblesynergieswithland-baseddemand;• AEuropeanfundingscheme

Challenges- 3 Safety Aspects and Risk Assessment in the LNG Supply Chain

Large-scaleLNGhasagoodsafetyrecord,Specificfocusisputonregula4onsandindustrystandardsforsmall-aswellasmedium-scalehandling• Guidelinesonadequaterisk-modellingapproaches• Amethodofrepor4ngincidentsandaccidentsrelatedtothebunkeringofLNGasashipfuel.

• Off-shoreandon-shoresafetyregula4onsareharmonized;•  LNGfeedervesselsandbarges,aswellasbunkervesseltraffic,etc.,

Challenges- 4 Technical and Operational Aspects in the LNG Supply Chain

• Aso-calledemergencyshutdownsystem(ESD);• Aso-calledemergencyreleasesystem(ERS)and/orbreakawaycouplings;

•  Tailor-madetrainingofpersonnelinvolvedinLNGbunkeropera4ons;•  Technicalaswellasopera4onalmeasurestominimizemethanereleases.

Challenges – 5 The Permit Process

•  Theintroduc4onofLNGasamarinefuelisnotonlyaques4onoftechnologyandeconomybutalsosafety,asconcernsareo[enraisedbothbythegeneralpublicandlocalauthori4eswiththesi4ngofLNGfacili4es.

•  Investorsmusthandlethepublicconsulta4onprocessinaproperandwell-targetedwayinordertoshortenthepermitprocess;

• Guidelinesforthesi4ngofsmall-andmedium-scaleterminalswillfacilitatethesiteselec4onprocess;

• Na4onalauthori4escanintroduceacoordinatedpermitprocess,e.g.intheformofa“onestopshop”inwhichtheauthori4esconcernedcooperatecloselyinordertoshortentheprocess4me.

Advantages- The proposed fixed LNG bunkering installation has several advantages, such as:

•  Itallowstobunkershipsattheje\es,wheretruckscannotaccessandhencewheredirecttrucktoshiploadingisnotpossible

•  Itop4mizesthelogis4cchainforoil-carriers:LNGasabunkerfuelcanbesuppliedduringtheoil-chargingac4vityattheseberths

•  ItiswellintegratedinfutureGO4LNGProject,whereaddi4onalflexibilitycanbeaddedtotheproposedbunkeringservice

•  Theinstalla4onisasafeandverycost-efficientalterna4veforbunkeringLNG-poweredvessels

Thank You