POSEIDON MED

Closing Ceremony

Brussels, Belgium17th February 2016

IOANNIS BAKAS

POSEIDON MED PROJECT MANAGER

POSEIDON MED DESCRIPTION

POSEIDON-MED is a cross-European border project aimed at designing a LNG transportation, distribution,

supply (including bunkering value chain) network and infrastructure for the adoption of LNG as marine fuel

for shipping operations in the Eastern Mediterranean and Adriatic region, and is defining the framework for

a well-functioning and sustainable relative market (vessels) for its demand.

Policy Drivers: IMO-SECA – Clean fuel directive - TEN-T guidelines with respect to emission reduction

Framework of project: falls under the TEN-T programme, co-financed under the Multi-Annual Work

Programme 2013 (Motorway of the Sea - MoS)

Duration: 2 years. Ended on December 2015

Five member states: Greece, Cyprus, Italy, Slovenia, Croatia

18 Partners: Classification company, Port Authorities, Engineering and Consulting companies, Shipping

companies, Ship-owners Association, gas suppliers, technical organisations.

POSEIDON MED – 8 Activities

No. ACTIVITIES

1 LNG Network. Supply and Demand

2 Legislations and Regulatory Framework in Offshore & Onshore Installations

3 LNG Infrastructure & Installations

4 Integrated Maritime Supply Chains for LNG

5 Risk Assessment

6 Sustainable Financing

7 Local Assessments of Northern Adriatic Ports

8 Management & Dissemination Activities

Activity 1: LNG Supply. Sources. Pricing

OBJECTIVE: To present a full study on how to create a strong LNG Supply network connecting the Adriatic

Sea to the Ionian Sea and the Eastern Mediterranean including Cyprus

1.1. LNG supply, sources, pricing

• LNG sources were reviewed for a complete and efficient service for LNG bunkering. Our aim was to

diversify sources and routes in order to increase the security of supply

• Formulation of an LNG Supply and LNG Demand Model

• Factors impacting NG and LNG prices were examined

1.2 LNG demand

Estimation of monthly and annual LNG demand at Ports of Piraeus, Limassol and satellite ports

(Patras, Igoumenitsa, Rafina, Lavrio, Heraklion)

1.3. LNG Logistics

• What are the logistical requirements and options for synchromodal transportation and tools for

efficient direct ship-to-ship refuelling

Activity 2: Legislation and Regulatory Framework for the adoption

of LNG as fuel in Offshore and Onshore Installations

OBJECTIVE: The aim of the activity is to analyze and evaluate the identified gaps with a view to forming a

solid regulatory framework for the application of LNG as Marine Fuel in offshore and onshore installations.

SUB-ACTIVITY 2.1: Legislative and Regulatory Framework for the Certification of LNG Fuelled Ships

Current rules for LNG ships and bunkering procedures standards and guidelines were reviewed (Class

Rules, IGF, IGC, EMSA study on standards & rules for bunkering of gas-fuelled ships, national legislation),

bottlenecks and gaps were examined.

SUB-ACTIVITY 2.2: Legislative and Regulatory Framework for Port Installations

Gaps and critical areas in the legislation were identified and analysed with a view to forming a solid

regulatory framework covering the safe storage and distribution of LNG, as well as bunkering procedures

addressing the supply side in the logistics chain. A relevant proposal for Greece has been drafted.

Standards and Guidelines which were studied: ISO LNG Bunkering Standards, IMO (IGF) code, IACS, EU

previous studies on LNG bunkering standards, national port legislation.

Activity 3: LNG Infrastructure and Installations

ACTIVITY 3 focused on Port and Vessel installations

• SUB-ACTIVITY 3.1 focused on the development of an LNG infrastructure station in the ports of

Piraeus (Greece) and Limassol (Cyprus) covering the LNG supply chain from large LNG import

terminals and/or LNG plants liquefying natural gas to LNG, to use on board ships.

• An LNG bunkering infrastructure consists of fixed terminals, bunker ships and tank trucks.

• We recommend the following suitable bunkering solutions:

Ship-to-Ship bunkering

Truck-to-Ship bunkering

Activity 3: LNG Infrastructure and Installations

SUB-ACTIVITY 3.2 studied the necessary technical steps for the retrofit of the vessels participating in this

project.

Six candidate ships for LNG retrofit were selected and studied. The selection process was based on age,

engine, size, data. All vessels are trading within the Mediterranean area.

The role of the Bunkering Tanker Vessels is very important as they are the link between the LNG

processing and storage facility and the end-users (LNG fuelled ships).

LNG bunker vessels and feeders of various capacities, to feed different ports and for port bunkering, were

evaluated.

• A 1000 cm bunker vessel & 4

LNG tank trucks to undertake

the LNG bunkering process

• As the demand for LNG will

grow in 2023, it will be

necessary to use additionally a

3.000 cm bunker vessel.

• To handle the bunker volumes

of the largest vessels, an LNG

bunkering vessel of 1.000 cm

will have to enter in operation

by 2026.

• In 2038, a 500 cm bunker

vessel will be introduced and in

2044 another one.

Bunkering Facilities & Supply Chain

Activity 3: LNG Infrastructure and Installations

Activity 4: Integrated maritime supply chain for LNG

OBJECTIVE: To define a set of scenarios for the

implementation of transport chain in the Port of La

Spezia: maritime side, port operation side, land side.

SUB-ACTIVITY 4.1:

A set of scenarios for the implementation of a strategic

road map for LNG supply chain was studied in the

port of la Spezia was defined

SUB-ACTIVITY 4.2:

An analysis was carried out on how LNG could be used

on a full LNG based logistic chain including different

means of transportation and new organisation of LNG

based freight flows to the inland terminal of Melzo.

Activity 5: Risk Assessment

1) Risk Assessment on Port and Mainland Installations

- HAZID Analysis for the Ports of Piraeus and Limassol

- Exclusion Zone Assessment

2) Risk Assessment on vessels retrofit and installations – 6 candidate vessels

- Vessels Conceptual Analysis, ARBD Report on each vessel

- 2 sets of design screening exercise through workshops based on the concept of the ARBD

(Assessment of Risk Based Design)

OBJECTIVE: To complete a risk assessment, as well as address hazards and operability issues related to

LNG as marine fuel.

Activity 6: Sustainable Financing

OBJECTIVE: Formulate sustainable financing practices for retrofit of vessels that use LNG as fuel

1) A what-if analysis and risk assessment on LNG Bunkering was studied

2) Financing instruments for vessels retrofitting were developed

Assessment carried out to evaluate the viability of the project

Formulation of modern financial instruments based on industry abilities and needs

Implementation of road map

Critical parameters affecting the decision to shift to LNG are: LNG vs HFO & LNG vs LSF price

differences, LNG Bunkering Logistics cost in the refuelling terminal, technical considerations,

utilisation factor (how many hours spent at sea per year), remaining lifetime, time spent in Emission

Control Areas, access to co-funding.

Activity 7: Local Assessments of Northern Adriatic Ports

4 NAPA: Venice and Trieste (Italy), Koper (Slovenia), Rijeka (Croatia)

We examined the potential for LNG as marine fuel in the Northern Adriatic Ports.

A strategy for LNG supply chain development within each port (from LNG procurement to storage, from

distribution to delivery to final LNG user) was evaluated.

We studied the potential for

synergies with other ports of

the region and addressed

factors such as the means of

transportation, storage, and

distribution of LNG.

We analysed the LNG market potential and main driving forces influencing demand, the overall availability

of LNG and infrastructure facilities.

• A strong relationship with Authorities related

to the project: Communication with Cypriot,

Greek, Italian, Slovenian and Croatian

Ministry representatives

• Regular interval meetings between the

Technical Management Team and the

Consortium to discuss the progress of the

project, solve issues that arise, approve

deliverables, review technical and financial

execution of the project.

• Technical Achievement Award at the Lloyd’s

List Greek Shipping Awards 2014

Activity 8: Management and Dissemination Activities

POSEIDON MED EVENTS:

• Interviews on TV and Web Channels

• Interviews and references in the press and online

portals

• Participation in Exhibitions and Conferences in

Cyprus, Greece, Italy, Sweden, Spain, Belgium,

Latvia etc.

• Workshops in the ports of Greece, Italy, Cyprus,

Slovenia, and Croatia

• Training courses and Info Days at Universities

• Synergies with other programmes

(OnTheMosWay)

Activity 8: Management and Dissemination Activities

ACHIEVEMENTS - CONCLUSIONS

POSEIDON MED achieved to investigate in depth the application of small-scale LNG in Eastern

Mediterranean and to conclude on positive results regarding sources, supply, pricing, vessels’

installations and application of risk assessment.

LNG as marine fuel in the Eastern Mediterranean area is feasible from technological and financial

points of view however, much will depend on the following parameters:

Application of a robust methodology and of proven LNG marine systems technology

Building the right, safe and efficient operation

Supply and demand balance

Important supply resources

Societal awareness & support, Stakeholders engagement

Collaboration between ship-owners, designers and class societies

Thank you!

Ioannis Bakas, Project Manager

M: +30 6941 687511

E: i.bakas@poseidonmed.eu

www.poseidonmed.eu

Follow us on Twitter: @Poseidon_Med

Connect with us on Linked In:

https://gr.linkedin.com/in/poseidonmed

Visit our website: www.poseidonmed.eu