1 Agenda The Project LNG shipping o History o Track record - - PowerPoint PPT Presentation

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Woodfibre LNG Marine Shipping August 6th, 2014

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• The Project
• LNG shipping
• History
• Track record
• Regulations
• Vessel design
• Environment
• Shipping routes
• LNG facilities near urban centres
• Discussion

Agenda

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Project

1. Natural gas pre-treatment and liquefaction plant 2. Flare 3. Floating storage and offloading (FSO) unit 4. Module load-in quay 5. Supporting infrastructure 1 2 5 4 3 Small scale LNG processing & export facility

• Approx. 2.1 million tonnes of LNG per year

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A brief history – LNG shipping

1959 “Methane Pioneer” Converted to LNGC 1964 “Methane Princess” & “Methane Progress” 1969 First exports of LNG from Alaska to Japan 1982 Japan imports 72% of global LNG for power generation 1991 First LNG shipments from Australia to Japan and South Korea 2009 Canaport imports Canada’s first LNG in Saint John 2013 US and Canada projects seek to export LNG

Source: Helderline.nl Source: Helderline.nl Source: Calum McClure

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• From 1964 - 2012, there have been

more than 140,000 LNG carrier voyages

• There are more than 400 LNG

carriers in the world, with an additional 100 on order

• There has never been an LNG spill

as a result of a loss of LNG containment of an LNG carrier

Safety track record

Source: Royal Dutch Shell

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• International Maritime Organization (IMO)

specialized agency with responsibility for:

• Safety and security of shipping: SOLAS
• Prevention of marine pollution: MARPOL
• International Gas Code (IGC) for Ships Carrying

Liquefied Gases in Bulk

• Classification Society rules and requirements cover

Design, Construction, and Operation against SOLAS and MARPOL

• Port State control through Transport Canada
• Training (legislative and non legislative)

International regulations for LNG carriers

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Canadian shipping regulations

• Canada Shipping Act regulates domestic

and international vessels operating in Canadian waters

• Key legislative objectives of the Act are:
• Protect the health and well-being of

individuals involved in the shipping industry

• Promote safety in marine transportation
• Protect the marine environment
• Establish an effective compliance promotion

program

• The regulator for shipping in Canada is

Transport Canada

• All vessels transiting will meet the Canada

Shipping Act requirements

Source: Transport Canada

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• Society of International Gas Tanker and Terminal

Operators (SIGTTO)

• Established in 1964 with membership from

terminal operators and shipping companies

• The organization provides a means through which

all industry participants may:

• share experiences
• address common problems
• develop best practices
• define standards
• Provides a basis for recommended design

requirements and operational practices for both terminals and ships

Industry bodies & best practices - SIGTTO

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• In the aftermath of 9-11, the US Government commissioned

Sandia National Laboratories (2004, 2008 and 2011) to study a worst case scenario involving an LNG carrier

• The objective is to ensure that an extreme event is analyzed

with a view to further improve the safety of the LNG industry

• The study simulated, in controlled conditions, a major spill

caused by a terrorist attack or other event and then measured possible effects

• https://www.youtube.com/watch?v=RQ1RsirstDo&feature=y
• utu.be
• The results of the study are used by the industry to further

improve the safety and integrity of the LNG industry

Safety is the number one priority

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Transport Canada - TERMPOL Process

Woodfibre LNG will complete a voluntary Transport Canada Technical Review Process of Marine Terminal Systems and Transshipment Sites (TERMPOL) for the project

• Program managed by Transport Canada and a committee of select

government agencies and interested bodies e.g., BC Coast Pilots

• Comprehensive risk assessment process to ensure safety of vessel

transits from terminal to open ocean

• Transit simulations and detailed studies
• Process takes approximately 6 – 12 months to complete
• Recommendations to improve safety and minimize risk are adopted

into the project

• Detailed safety procedures and emergency response plans are

developed

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Carrier design – relative sizes

Moss LNG Carrier Length: 285m Draft: 11.5m Height: 58m Membrane LNG Carrier Length: 294m Draft: 11.5m Height: 57m Large Container Ship (Sofie Maersk) Length: 347m Draft: 14m Cruise Ship Length: 294m Draft: 8.2m Height: 62m BC Ferries (Coastal Celebration) Length: 160m Draft: 5.7m

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• Double hull cargo tanks

and fuel tanks

• Four or five cargo tanks

at ambient pressure

• Containment systems

meet IGC code design requirements

• Moss – Type B tanks
• Membrane Tanks

LNG Carrier design

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LNG carrier design – features

• Capacity is about 160,000m3 for standard vessels
• LNG Vessels are highly sophisticated costing in excess of $200M USD per vessel.
• High levels of redundancy are provided:
• Propulsion
• Electrical
• Cargo handling systems
• Transfer of cargo is undertaken with highly specialized loading arms connected to

the vessel and completed in about 20 hours from connection

• Ship to shore link – three (3) independent systems to integrate safety systems
• Quick shutoff
• Quick disconnect to enable the vessel to depart the berth in an emergency
• Integrated Automation System ensures extensive alarm and monitoring systems
• Firefighting capability onboard the vessel and on the terminal
• Operating crew of about 24 people onboard

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LNG carrier operations

• Extensive regulations for operations onshore and onboard the vessel
• Regulated competency requirements for crew and onshore personnel
• Ships crew are regularly trained and evaluated for competence
• State of the art simulators enable crew to manage navigational

situations and complete training exercises

• Comprehensive training for engineers and cargo operators

Source: Teekay Source: Maritime Executive

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Natural Gas vs Diesel

• Natural gas will be the primary fuel of LNG carriers in Howe Sound
• Using natural gas instead of diesel to fuel LNG carriers reduces GHG emissions

by about 25%

• Estimated emissions in tonnes for Howe Sound round trip:

Ballast water

• Ballast water exchange must be completed at deep sea, >200 Nm offshore,

prior to vessels arrival

• Future marine legislation will require ballast water to be treated

LNG carriers - environment

Note: upper limit CO2 percentage is taken from 2010 DNV The age of LNG is here, other percentages come from 2009 IMO Second IMO GHG study.

Natural Gas Low Sulphur Diesel CO2 95 130 NOX 1.0 1.7 SOX 1.0

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Coastal shipping route

Tethered Tugs for loaded passage

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Howe Sound shipping route

• Vessels will be escorted in

Howe Sound

• Tugs, with firefighting

equipment onboard, will support the berthing

• perations and remain during

loading

• Sophisticated assisted docking

and mooring monitoring systems

• Vessel will be at manoeuvring

speed about 8 – 10 knots during transit

• Insignificant wake generated

by vessels < 10cm at 50m

• Noise will be negligible due to

low speed and power (approx. 30% of installed power)

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Coast transit

Route In bound Outbound Distance 172 nm 169 nm Transit Time 14 – 15 hours 14 – 15 hours Time in Canadian Waters

• Approx. 57 hours per round trip

Increase in traffic (English Bay) to Ocean <1% Increase in traffic (Howe Sound)

• Approx. 62% increase

However, 10% less activity than when Woodfibre Pulp Mill was operational

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LNG facilities near urban centres

Higashi-Ohgishima LNG Terminal, Tokyo

Image Source: Obayashi.co.jp2

Higashi-Ohgishima LNG Terminal Capacity1 15.57 mtpa Start-up1 1984 Type Regas Terminal Status1 Operational Nearest City Tokyo, Japan City Population8 35,682,460 Ship Frequency NA Higashi – Ohgishima LNG

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LNG facilities near urban centres

Futtsu LNG Terminal, Tokyo Bay, Japan

Image Source: lngworldnews.com3

Futtsu LNG Terminal Capacity1 20.24 mtpa Start-up1 1985 Type Regas Terminal Status1 Operational Nearest City Tokyo, Japan City Population8 35,682,460 Ship Frequency NA Futtsu LNG

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LNG facilities near urban centres

Barcelona LNG Terminal, Spain

Image Source: shipspotting.com4

Barcelona LNG Terminal Capacity1 13.31 mtpa Start-up1 1969 Type Regas Terminal Status1 Operational Nearest City Barcelona, Spain City Population8 4,604,000 Ship Frequency NA Barcelona LNG

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LNG facilities near urban centres

Zeebrugge LNG Terminal, Belgium

Image Source: kingspantarec.com5

Zeebrugge LNG Terminal Capacity1 6.62 mtpa Start-up1 1987 Type Regas Terminal Status1 Operational Nearest City Bruges, Belgium City Population8 117,170 Ship Frequency NA Zeebrugge LNG

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LNG facilities near urban centres

Everett LNG Terminal, USA

Image Source: Reuters7

Everett LNG Terminal Capacity1 5.44 mtpa Start-up 1971 Type Regas Terminal Status1 Operational, but inactive Nearest City Boston, United States City Population8 4,180,000 Ship Frequency 60 ships in 20096 Everett

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Summary

• LNG shipping has one of the highest safety record in the maritime

industry

• Safety performance is maintained through stringent regulatory

regime, strict design requirements, robust operational practices, and training

• Vessels are regularly inspected by regulators and port state

inspection authorities, i.e. Transport Canada

• Marine safety and navigational risk will be comprehensively

addressed through the TERMPOL process