LNG Evolution within the Shipping Industry 28 April 2012 Brief Bio - - PowerPoint PPT Presentation

Teekay LNG Projects

28 April 2012

LNG Evolution within the Shipping Industry

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Brief Bio - David Macdonald Teekay Vancouver

» Position: Director, New Build & Conversions, Teekay, Vancouver. » Responsibilities: Technical services management for new builds and conversions. » Career:

2002 to date - Teekay, New Build Director for the last 4 years. 2000- 2002 - Golar Management, Fleet Technical Manager & New Build Manager 1965 – 2000 - BP Tanker Company seagoing to Chief Engineer, shore based in various Operational and New Build roles.

» Qualifications:

UK DTp Extra First Class Combined Certificate of Competency (Steam and Motor) 1982 Diploma in Management Studies (Shipping) Plymouth 1983 Chartered Engineer - CEng Chartered Marine Engineer – CMarEng Fellow of The Institute Of Marine Engineers, Science and Technology – FIMarEST Fellow of The Institution of Diagnostic Engineers - FIDiagE.

» Gas Industry Specific involvement

• Member of SIGTTO (Society of Gas Transport & Terminal Operators) General Purpose Committee

from 2005.

• IMO - member of the Steering Committee for the IGC (International Gas Carrier) Code review
• IMO – member of the Correspondence Group for the new IGF (International Gas Fuel) Code

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Teekay Corporation

» Founded in 1973 by the late Torben Karlshoej » Transnational company with 6,400 employees » Transports approximately 10% of the world’s seaborne oil » World’s largest operator of shuttle tankers and mid-size oil tankers » Leader in harsh weather floating production solutions » Third largest independent LNG ship owner and operator

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Teekay Transnational Operations

Conventional » Commercial » Ship Mgmt » BD » CEO » Executive (Gas / Conventional / Corporate) » Corporate Support » Commercial Support » Fleet Support

Vancouver Bermuda Stamford London Glasgow Trondheim Stavanger Tokyo Rio de Janeiro Macaé / Itajai Madrid Mumbai Singapore Perth Sydney

» Corporate Office » Conventional: Gemini Pool Commercia l » Conventional: Commercia l BD

Aberdeen

» Conventional / Gas: Ship Mgmt Manning » FPSO: Ops » FPSO: Executive Commercial BD » Shuttle: Ship Mgmt BD » FSO: BD » FPSO: Ops » Gas: Commercial BD » Manning » Fleet Support » Conventional Commercial Ship Mgmt BD » FSO: Ship Mgmt BD » Towage: Ship Mgmt » Marine Services » FSO/ Conventional / Bulk Ship Mgmt

Shanghai

» Conventional / Gas / Offhshore Representativ e Office

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217,000 AL KHUWAIR 2008 AL SHAMAL 217,000 2008 AL KHARSAAH 217,000 2008 AL HUWAILA 217,000 2008 EXCALIBUR 138,000 2002 EXCELSIOR 138,000 2005 Excelsior FSRU – Bahia Blanca, Argentina AL MARROUNA 151,700 2006 AL AREESH 151,700 2007 AL DAAYEN 151,700 2007 CATALUNYA SPIRIT 138,000 2003 GALICIA SPIRIT 140,500 2004 HISPANIA SPIRIT 140,500 2002 MADRID SPIRIT 138,000 2004 POLAR SPIRIT 88,500 1993 ARCTIC SPIRIT 88,500 1993 TANGGUH HIRI 155,000 2008 TANGGUH SAGO 155,000 2009 CUBAL 160,000 2012 LOBITO 160,000 2011 MALANJE 160,000 2011 SOYO 160,000 2011 MERIDIAN SPIRIT 165,500 2010

WOODSIDE DONALDSON 165,500

2009 MAGELLAN SPIRIT 165,500 2009 ARWA SPIRIT 165,500 2008 MARIB SPIRIT 165,500 2008 METHANE SPIRIT 165,500 2008

Teekay LNG Fleet

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Agenda

» A Brief History The beginning of LNG Shipping The Development of Regulations » Existing Code Impact on Shipping Gas Containment Systems Proven Propulsion Systems » Regulations Update IGF Code Development

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A Brief History – The beginning of LNG Shipping

“Methane Pioneer” (ex- “Normati”) converted in 1959 to an LNG carrier of 5,000 m3 “Methane Princess” & “Methane Progress” – first purpose built gas ships constructed in 1964 with a cargo capacity of 27,000 m3

1959 1959

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A Brief History – The Development of the Regulations

» The first LNG carriers: 1959 - Methane Pioneer 1964 - Methane Princess and Methane Progress » Regulations for LNG carriers: » 1976 Code for Existing Ships Carrying Liquefied Gases in Bulk 1976 Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk 1983 International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk.

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Existing Code Impact on Shipping

» The key areas where the IGC code will impact commercial shipping are:

• Gas Containment Systems
• Proven Propulsion Systems

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Gas Containment Systems - Type A Tanks

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Gas Containment Systems - Type B Tanks

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Gas Containment Systems - Type C Tanks

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Gas Containment Systems - Current Fleet Tank Designs

Development of the ‘membrane’ techniques in France by two separate companies Gaz-Transport and Technigaz. They have now merged into one company - ‘GTT’

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Gas Containment Systems - Current Fleet Tank Designs

» Development of the spherical tank design (Moss- Rosenberg) type ship in early 1970’s

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Gas Containment Systems - Current Fleet Tank Designs

Introduction of the IHI-SPB system in 1990’s

Insulation CL Bhd Tank dome Swash Bhd Inner hull Access space Support Rolling chock

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» Astano » Gaz Transport/McDonnel Douglas » Bridgestone Semi Membrane » IHI Flat Tank » Shell Internal Insulation » Chicago Bridge and Iron Spherical Containment » CONCH Freestanding Spherical LNG Tank » CONCH Balsa/PUF Containment System » CONCH 2 Containment System » Gaz Transport/Pittsburgh Des Moines free standing system » LGA Zellantank System » Linde AG MVT Containment System » Ocean Pheonix Pressure LNG System » Verolnave LNG Containment System

LNG Containment Systems - Other Tank Designs

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Existing Code Impact on Shipping

» The key areas where the IGC code will impact commercial shipping are:

• Gas Containment Systems
• Proven Propulsion Systems

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IGC – Chapter 16

“Methane (LNG) is the only cargo whose vapour can be used in machinery spaces of category A and in such spaces may be utilised only in boilers, inert gas generators, combustion engines and gas turbines.”

LNG - UP LPG - DOWN

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Main Propulsion

»

Steam Turbine

»

Diesel Engines:

»

Dual fired diesels Direct drive Diesel electric / Azipod

LNG Ship Propulsion Systems - Overview

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Steam Turbines

Low thermal efficiency High fuel costs Low noise Low vibration

LNG Ship Propulsion Systems – Steam

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Ventilated Duct Gas Burning

Gas Burning Arrangement

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Ventilated Gas Burning Duct

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Duel Fired Diesels Gas Fueled - Diesel Engines

Types of Engine Available

• Spark ignition of low pressure gas
• High pressure gas injection + pilot fuel
• Dual fuel - low pressure gas + pilot fuel

Disadvantages Higher maintenance costs Higher vibration levels Higher noise levels Advantages Lower Fuel Consumption Higher Available Power

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Gas Fueled – Diesel Engines

Ventilated Duct

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Class Requirements for Dual Fuel Engines

»

Double wall arrangements as for boiler plant

»

Start up on oil fuel only

»

Immediate change over to oil fuel operation

»

Gas valve timing to prevent gas passing to the exhaust

»

Crankcase gas detection

Gas Fueled - Diesel Engines – Fuel Supply

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Dual Fuel Diesel Electric

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New Era in LNG – A New Code

» At MSC 78 in May 2004 the IMO May - - approved a new work programme:

“The Development of international regulations for gas fuelled ships’

» This Code refered to as the IGF Code is not expected to enter force before 2015 and by then many of us here would expect to be either using gas as fuel by this time or certainly to be at an advanced stage of planning and commitment. » Despite the best endeavours of many people, the industry finds itself in a similar situation to that of the early days of LNG shipping where ships were in service and the rules were produced retrospectively.

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Do we need Prescriptive Rules?

» Although the final IGF Code is not completed, the industry is in fact much better shape than when the first LNG carriers were brought in to service. » Today we already have the following:

• IGC Code.
• Interim Guidelines for Gas fueled vessels
• Many experienced personnel in the industry.
• Good safety procedures

» Lets Build on the experience and knowledge of the existing LNG Industry so that we can deliver safe, reliable and effective powering

• solutions. You are not alone!

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There are Hurdles Ahead – for conversion to LNG

Managing Public Perception

An education campaign should be considered

Managing the Regulatory Environment

IMO Rules do not yet exist Class rules exist but are inconsistent Flag state must be consulted and onboard with decisions taken Environmental issues need to be incorporated

Training

Effective Training of Shore Staff Effective Training of Crew

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The Responsibilities of a LNG User

To Maintain Safety

Maritime LNG industry has an unparalleled safety record

To Educate employees at all levels

CEO down must have the basic knowledge

To disseminate Informed and accurate information

Your credibility and your customers trust is at risk

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Summary

» The LNG shipping industry has an exemplary safety record built up over the last 50 years. » Let us maintain that safety record for gas-fueled vessels. » LNG is safe but is required to be handled with care and respect. » Let us look forward to the future and the use of ‘LNG as fuel’ with the added benefits to our ENVIRONMENT and our OPERATING COSTS. » Thank you

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Cryogenic Exposure