The LNG supply chain scenarios: the downstream from port to land - - PowerPoint PPT Presentation

• Eng. Simone Pacciardi

Technical consultant La Spezia Port Authority

The LNG supply chain scenarios: the downstream from port to land

Glasgow (United Kingdom, Scotland) September 15th, 2015

The natural sheltered port of La Spezia, in North-West Italy, is located in the Liguria Region, in the North Tyrrhenian Sea. Thanks to its excellent geographical position and intermodal links, La Spezia is able to serve the main North Italian and South European markets.

The Port of La Spezia

2

La Spezia Port Authority - 2015

Transport network linked to the Port of La Spezia

La Spezia is a Core Port within the TEN-T Corridor Scandinavian-Mediterranean Actually, it manages 1,3 million TEUs/year (2nd most important container port of the Northern Italy) and about 1200 container ships, 250 cruise ships and 100 general cargo ships moor every year at the port of La Spezia (data: 2014)

La Spezia

From - to LSCT: 150 trains/w eek

Melzo-Rho (Milan) 20 / week Dinazzano (Reggio Emilia) 14 / week Bologna 11 / week Padua 9 / week Rubiera (Modena) 7 / week Modena 4 / week Vittuone (Milan) 4 / week Verona 3 / week Rivalta (Aessandri a) 2 / week Brescia 2 / week From - To:

trains

Rotterdam 12 / week Herne 5 / week Venlo 5 / week Antwerp 2 / week Zeebrugge 2 / week Karlsruhe 3 / week Frenkendorf 2 / week

Melzo

120km 175km 210km 165km 215km 185km 260km 280km

Melzo is the inland gateway to the European markets

220km 150km

La Spezia as a SOUTHERN gateway for European Market

The port of La Spezia has a direct rail link with the main inland terminals of the Northern Italy, and in particular to the inland terminal managed by Contship Italia Group in Melzo.

The inland terminal of MELZO as a “New Port” in Italy

Shunting Area Terminal Gate

160,000 m2 10 km of rail tracks

Services center

TEN-T CNCs and MoS

• Seamless maritime integration in the global logistic chain
• Environmental protection
• Human elements

“…On the environment, the main areas for work are the reduction of emissions, mainly Sulphur (SOx), in order to comply with the new Annex VI of MARPOL which comes into force on the 1st of January 2015 on the Baltic and North Seas. MoS are supporting ship and shore based installations and propulsion systems, logistics and reception facilities in ports, such as Liquefied Natural Gas (LNG), methanol, de-sulphurised fuels and scrubbers...”

Brian Simpson

(MOS coordinator) Work Plan

• f

the European Coordinator

Port Authority of La Spezia and ContshipItaly Group cooperating in the project POSEIDON-MED

Supply chain sustainability

Sea – Port scenario Port – land scenario

Best practice: promotion of the use of LNG on the whole logistics chain, for maritime and terrestrial means of transport

The «green» perspective of the corridor La Spezia – Melzo

The main overall goal of the project consists of conducting a study (accompanied by an extensive Report) aimed at developing a global strategy able to promote the use of Lng as marine fuel in Greece, Cyprus and Italy. The abovementioned aim can be divided into several sub-targets, like: studying Lng sources and destinations in these Countries, studying all necessary activities to develop a sustainable market for Lng while satisfying emissions reduction as highlighted within TEN-T objectives. Through the final Report it will be possible to identify: the infrastructure and the network of facilities to be developed across the three Countries, the total Lng demand, the actions that are required to formulate the legislative and regulatory framework, risks and issues to deal with and financial needs and sources.

Poseidon-Med Project’s main goal

POSEIDON MED activities

• Lng Network. Supply and Demand
• Legislation and Regulatory Framework
• Integrated Maritime Supply Chain for LNG
• Local Assessments of some Italian Ports
• Sustainable financing
• Risk assessment

POSEIDON MED activities

Integrated Maritime Supply Chain for LNG

La Spezia – Melzo: as the first Italian best practise of LNG corridor

As told before, the overall aim of the project is to define future scenarios about the implementation of a transport chain based on Lng from the maritime, port operation and land sides. Activity 4: Objectives

• to analyse all the potential constrains and opportunities
• defining a set of scenarios for the implementation of strategic road map for the

LNG supply chain in the Port of La Spezia – activity 4.1

• to analyse how LNG could be used on a full LNG based logistic chain including

different means of transportation and new organization of LNG based freight flows to the inland terminal of Melzo (MI) enabling “optimised” solutions – activity 4.2

Integrated Supply Chain sea-port and port-land LNG scenario

Activity 4: Methodology

For both the sub activities, the methodology includes desk analysis, interviews with the stakeholders, technical workshops and on-site visits to define:

• Policy and regulations framework
• Current power sources and supply in each port and related logistics systems;
• verall availability of LNG and existing facilities;
• Potential demand of alternative fuels for each port and maritime sector (LNG,

electricity etc.) up to 2020-2030; demand forecasting for Med Sea; specific market considerations

• Specific energy savings considerations
• Upstream and down-stream flows;
• Bunkering solutions for vessels and tugs;
• Cost of LNG terminals;
• Use of regasification sources;
• Fuel price scenarios;
• Demand forecasting for Tyrrhenian Sea;
• Business model for the Port;
• Feasibility for a LNG filling station in the port;
• Evaluation of operations and security.

Methodology:

• Collection of contributes and documents

(more than 50) regarding the actual worldwide state-of-the-art of the LNG Supply Chain based on the elements defined in the previous slide.

• Selection of the most significant documents

divided according to subject of each paragraph and insertion in the “Ride the wave” document (about 90 pages)

• Document with two similar sections, one for

the elements of the sea-port LNG chain (activity 4.1), one for the elements of the port-land LNG chain (activity 4.2).

Desk analysis (common for the activities4.1 and 4.2)

• 1st workshop (19th February 2015, La Spezia) organized to involve the operators interested in

the LNG technologies and port scenarios

• Visit to the Panigaglia regasification plant (25th March 2015, Panigaglia – SP) and meeting with

the gas suppliers (GNL Italia, Snam Group), in joint with University of Genoa - Marco Polo programme.

• 2nd workshop (23rd September 2015, La Spezia) planned to define scenarios and LNG Supply

Chain SWOT analysis in collaboration with La Spezia operators; 4 scenarios will be defined:

• Resilience
• Industry Driven
• Sustainable logistic
• Energy driven

Interviews, workshops and on-site visits

(activity 4.1)

• Visit to the Piacenza refueling station (6th May 2015) and meeting with the designer of

the plant (Vanzetti engineering and ENI), in joint with University of Genoa - Marco Polo programme.

• Involvement of a group of technical operators (i.e. General Electrics, Gastech) and local

public authorities

• Workshop (1st July 2015, Melzo - Mi) planned to involve the operators interested and to

define scenarios and LNG Supply Chain SWOT analysis in collaboration with Melzo

• perators; 3 scenarios were defined:
• Industry Driven
• Sustainable logistic
• Energy driven

Interviews, workshops and on-site visits

(activity 4.2)

ESTIMATION OF THE LNG DEMAND by 2025 STARTING FROM TRAFFIC DATA

Starting from official traffic data by the Maritime Authority, we were able to estimate the LNG demand in the port of La Spezia. The elements necessary to start the analysis are:

• Type of ships mooring at the port of La Spezia
• Total installed power
• Service speed
• Number of arrivals in the port
• Kilometers travelled from La Spezia to the next destination

Based on these data, we conducted a series of groupings. The main objective is the categorization of total arrivals based on specific characteristics for each type of ship:

• container ships,
• general cargo and
• passenger/cruise ships.

Study act. 4.1

METHODOLOGY

Having categorized all vessels based on their type, we conducted a further grouping to allow a detailed description of each category in the port and finding a typical Container ship We have created 4 classes.

• Class A 0-1,999 TEUs
• Class B 2,000-4,999 TEUs
• Class C 5,000-9,999 TEUs
• Class D 10,000+ TEUs

Passenger ship 1 class equivalent to cruise ships. Cargo ship For general cargo ships, a second grouping was performed referring them to the same classification of container ships, converting the dead weight capacity in the TEUs equivalent.

• Class A/B 0-4,999 TEUs tons equivalent
• Class C/D 5,000+ TEUs tons equivalent

Typical vessel KING BYRON

• CLASS

A TOTAL km travelled by class A ships 266123 km km/ship class A 557.90961 km/ship Average service speed 25.74 km/h Time required 21.67481 h Average total power 11700 kW Specific consumption 134.4 gr/kWh Number of ships 477 Total consumption in tons 16257.6889 tons Total consumption in m^3 LNG 35766.9156 m^3

• Total kilometres travelled are calculated based
• n the real destinations of each ship

For each class, total consumptions are calculated multiplying the specific consumption by time required and average total power of each typical vessel The total LNG bunkering demand is the sum of total consumption of each class.

RESULTS

We assumed that by 2025 the whole fleet that now refuels at La Spezia will be LNG- powered and two sub-scenarios were developed. Sub-scenario 1: the number of ships mooring at La Spezia is constant

173500 tons of LNG

Sub-scenario 2: the number of ships mooring at La Spezia increases by 3% per year

240000 tons of LNG

TH THANKS KS TO TO: TEST STRALIS 30th May 2015

KM PERCORSI KG LNG CONSUMATI PREZZO LNG SPESA LNG €/KM LNG €/KM DIESEL DELTA 80K KM ANNO

saving

5,403 KM 1574.16 KG € 0.75/KG € 1,526.94 € 0.22 € 0.32 € 0.10

€ 8,000

Study act. 4.2

Hannibal, a company of the Contship Italia group, tested an IVECO LNG-powered truck to transport its container to and from the hub of Melzo. Main results of the test are listed below:

• Kilometers travelled: no problems
• Power on/power off motor: no problems
• Comments by the driver: The performances of the truck

are satisfactory.

Results, lessons learnt and perspectives

The workshops organized by La Spezia Port Authority and Contship Italia Group showed a great interest from the stakeholders of the supply chain La Spezia-Melzo

SWOT Analysis made with the contribution of the participants and created many interesting outputs about the implementation of the LNG technology on the downstream from port to land

Results, lessons learnt and perspectives

Studies show many “green” benefits using LNG technology in maritime transport as well as in road transport.

The actors of the logistics chain are well-interested and now they are boosting the activities of POSEIDON-Med Project in order to develop the LNG technologies, in particular on the corridor La Spezia-Melzo, although the Italian and the international context is not already clear.

In this sense, our methodology would be a clear instrument to clarify future perspectives and an important occasion to coordinate all the initiatives taken by all the actors of the logistics chain.