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Smart Ports Seminar Marin 23 April 2013

Large- and small-scale LNG challenges
Stephan Huisman
Director LNG technology - Vopak

Marin Smart Ports seminar 23 April 2013
Contents
What is LNG?
Trends in LNG world trade
Shipping of LNG
Site selection and demands to port design
Small scale LNG a new and promising trade
Questions?
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Marin Smart Ports seminar 23 April 2013
LNG?
LNG = Liquefied Natural Gas:
predominantly methane (C
1
H
4
)
liquefied to 161 degree C, reducing the volume by a factor of 600
safe transport & storage at near atmospheric pressure: safety
vaporizes quickly when exposed to atmosphere & lighter than air
gas clouds burn, but no explosions (if not confined)
low level of contaminants and NG a clean burning fuel
colorless and no smell

Why is LNG used?
allows transport of gas over long distances using LNG Carriers
creates flexibility in the natural gas market, enhancing reliability of
supply at competitive pricing
fuel for power generation and feedstock for industries
new trend: fuel for marine and road transport.
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Marin Smart Ports seminar 23 April 2013
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Environmental performance Natural Gas fuel
Natural gas is cleanest fossil fuel
Natural gas is used for:
power generation => flexible plants!
industrial feedstock & fuel
domestic appliances
road and sea transport (a recent trend)

Marin Smart Ports seminar 23 April 2013
an integrated high value energy supply chain
5
The traditional base-load LNG supply model

Marin Smart Ports seminar 23 April 2013
Why LNG instead of pipeline supplied natural gas?
Enhances security of supply (example Japan Fukushima)
Allows peak-shaving for high demand moments
Make-up for decline of piped import & indigenous supply)
Fuel supply to remote islands and smaller markets




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Marin Smart Ports seminar 23 April 2013
Woodside - Australia
World-wide LNG trade: steady increase (5 to 6% pa)
Source: ExxonMobil 2007
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Marin Smart Ports seminar 23 April 2013
Legend:
In Operation
Under Construction
Planned
Pipelines Operating
Planned Pipelines
Isle of Grain
Montoir
Fos
Barcelona
Cartagena
Huelva
La Spezia
Marmara
Ereglesi
Revythoussa
Bilbao
Sines
Zeebrugge
Sagunto
Aliaga
Teesport
El Ferrol
Europe main Natural Gas import infrastructure (2012)

8
2012
status
Milford Haven
Rotterdam
In last 6 years number of operational import terminals
increased with 7 (approx. + 30% growth)

Marin Smart Ports seminar 23 April 2013
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Woodside - Australia
LNG carriers: sizes increased

Marin Smart Ports seminar 23 April 2013
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Trend LNG fleet: main carrier fleet gets larger
Source: WoodMac (2008)

Marin Smart Ports seminar 23 April 2013
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Challenges for ports
LNG berths move into busy ports;
Scheduling of LNG chain is tight and delays not easily tolerated;
High vessel costs imply also a need for high port availability;
High safety standards need to be maintained: The LNG industry
maintains a conservative approach;
Vessel traffic management essential to warrant safe manoeuvres;
Locations selected of berths should have low probability of collision
Shallow draft vessels (< 12,5 m) so modest water-depths; but
High freeboards (> 20 m) and Loa between 300 and 350 m require
manoeuvring space and tug capacity;
Necessity to remain cost competitive.

Marin Smart Ports seminar 23 April 2013
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Woodside - Australia
Example of specific port design challenges (1)
Exposed jetty to cyclones
Dredged channel in hard rock
Woodside LNG - Australia

Marin Smart Ports seminar 23 April 2013
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Courtesy Sines LNG Portugal
Example of specific port design challenges (2)
Co-siting safety manaement
Atlantic swell wave limitations
Seismicity

Marin Smart Ports seminar 23 April 2013
24/04/2013 Vopak LNG
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Maasvlakte
Europoort
Hoek van Holland
LNG Terminal
location
LNG jetties
Existing HP
36 H-grid line
Example of specific port design challenges (2)
Rotterdam harbour:
Congestion onshore and water-ways;
Management of maritime risks
Port availability in adverse conditions

Marin Smart Ports seminar 23 April 2013
S3
S
4
S
1
0
S
1
8
S
2
2
S
2
7
S
3
2
S46
S49
S11
S17
S19
S39
Stad
Caland
T
T
T
T
T
T
T
T
T
T
T
Euromax
Lyondell
TOR
APM
EMO Mississippi
ECT Europa
ECT Amazone
Nerefco
Voridian
MOT
S4
S6
S59
S
5
0
S
6
0
S
5
5
T
T
T
S2
S5
Euromax MV2
O
MO
MW
W
Chemie T
MaasCentre
S
3
5
S42
T
EMO Amazone
T
S7
LionGas
T
T
Gate (Vogas)
S1
S8 S68 S71
S
6
6
S69
T
T
Benelux
PET
S67
Fairway configuration
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Creative layout and win-win between projects
Dredging and land reclamation
projects shared between various
projects;
Extensive logistics simulations
to develop access regime;
Onshore and nautical quantitative
risk assessments;
Navigation studies;
Wave penetration modelling
2006
2011

Marin Smart Ports seminar 23 April 2013
24/04/2013 Vopak LNG
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Examples supporting specialised port studies

Marin Smart Ports seminar 23 April 2013
IMO: Emission control areas: ECAs
EU Directives:
Reduction of
emissions from
the transportation
industry
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New
Old
97% 86% 71% 78% 67% Reduction (%)
0,1 0,5 1,0 1,0 1,5
3,5 3,5 3,5 4,5 4,5
SO
x
(%)
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
0
1
9
2
0
2
0
2
0
2
1
2
0
2
2

ECA
World
78%
97%
4,5%
3,5%
1,5%
1,0%
0,5%
0,1%
S
O
x
(
%
)
New
Old
97% 86% 71% 78% 67% Reduction (%)
0,1 0,5 1,0 1,0 1,5
3,5 3,5 3,5 4,5 4,5
SO
x
(%)
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
0
1
9
2
0
2
0
2
0
2
1
2
0
2
2

ECA
World
78%
97%
4,5%
3,5%
1,5%
1,0%
0,5%
0,1%
S
O
x
(
%
)
Emission control: small scale LNG (r)evolution?

Marin Smart Ports seminar 23 April 2013
Gasoil
LNG
LNG may also present a material cost fuel cost advantage
18
Challenges ahead for downstream market penetration LNG:
Standard legislation and equipment standardisation;
Safety training on how to handle liquid gasses to maintain safety record;
Engine management technology development;
Incremental investments in port infra and engine rooms of vessels;

Marin Smart Ports seminar 23 April 2013
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Emission control: small scale (r)evolution?
ECA
1.250 to 16,000 m
3

Marin Smart Ports seminar 23 April 2013
Green river initiative
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Green Deal:
LNG Rijn en Wadden
Signed on the 5
th
of July 2012
Challenges for small scale LNG:
Design of bunker barges;
Design of river barges;
Design of small LNG depots
Modal split between water-
and road transport of LNG

Marin Smart Ports seminar 23 April 2013 21

LNG
Gas Oil
Fuel Oil
Time
The volume of future small scale LNG a big question!
LNG truck fuelling station Zwolle, Netherlands
Break-bulk Rotterdam
Dual fuel LNG propulsion in operation
First movers are active!

Marin Smart Ports seminar 23 April 2013
The future of LNG terminals!
World-scale
&
Small satellites
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