MARINE SERVICE GMBH

__________________________________________________









Determination of a

Fuel Oil Equivalent (FOE) Factor

for a Steam Driven LNG Carrier







Prepared for :Mitsui O.S.K. Bulk Shipping
(Europe) Ltd., London (UK)

Prepared by: Marine Service GmbH
Hamburg, Germany

Date: 17 October 2005
___________________________________________________________________


Marine Service GmbH Tel.: 0049-40-36 90 30
Mattentwiete 1 Fax: 0049-40-36 90 32 64
20457 Hamburg E-mail: ms@marine-service-gmbh.de
Germany Web Site: www.marine-service-gmbh.de
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CONTENTS



0 Introduction ....................................................................................................... 3
1 Determination of Fuel Oil Equivalent (FOE) Factor ........................................ 4
1.1 Composition of LNG........................................................................................... 4
1.2 Determination of the different FOE-Factors ....................................................... 4
1.2.1 FOE-Factors based on Lower Heating Values (LHV) .......................................5
1.2.2 FOE-Factors based on Higher Heating Values (HHV)......................................7
2 Summary............................................................................................................ 9

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0 Introduction
The company Mitsui O.S.K. Bulk Shipping (Europe) Ltd., London (UK) (hereinafter
referred to as MOBSEL) is presently discussing a Time Charter Party for an LNG
Carrier with a steam turbine propulsion System.

In this case, the natural boil-off gas is used as fuel for the boilers and is calculated as
part of the daily fuel consumption. For the daily fuel oil consumption calculation, the
energy content of natural boil-off gas is converted into an equivalent amount of HFO
by the application of a Fuel Oil Equivalent (FOE) factor.

This factor is a comparison of the energy content of natural boil-off gas available from
1 m LNG to the energy content of 1 mt HFO. The FOE-factors can be determined by
comparing the Lower Heating Values (LHV) or the Higher Heating Values (HHV) of
both media.

The FOE factor depends on the composition of the LNG and the corresponding boil-
off gas and the different qualities of HFO.

In our investigations, we have considered heavy and light HFO with a sulphur content
of 0% or 4%.

For the composition of the LNG, we have used information received from
MOBSEL which is attached as Annex 1.

In the following text, we have summarised the results of our investigations.

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1 Determination of Fuel Oil Equivalent (FOE) Factor
1.1 Composition of LNG
The composition of the LNG transported in loaded condition is shown on the following
table.

Composition % mol
N2 0.0160
H2S 0.0000
CO2 0.0000
C1 92.8860
C2 5.5940
C3 1.2720
iC4 0.0880
nC4 0.1220
iC5 0.0110
nC5 0.0110
C6 0.0000
C7 0.0000
C8 0.0000
C9 0.0000
C10 0.0000
BENZENE 0.0000
COS 0.0000
100.0000


1.2 Determination of the different FOE-Factors
The FOE-Factors can be calculated on the basis of the Lower Heating Values (LHV)
or Higher Heating Values (HHV).

Definition of Heating Values

Lower Heating Value (LHV)

The lower heating value (also called net calorific or heating value) specifies the
total heat of the fuel per kg achieved by complete combustion under the condition
that the steam from the chemical reaction is not condensed to water.

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=
LNG m
tonnesHFO
HFO LHV
BOG LHV liquidLNG D
valent EnergyEqui
1000 * ) (
) ( * ) (
Yemen LNG BOG 1st day BOG 5th day BOG 14th day
Component of BOG
NITROGEN Mol Frac 0,0910000 0,0790000 0,0582000
METHANE Mol Frac 0,9091000 0,9206000 0,9416000
ETHANE Mol Frac 0,0000967 0,0000973 0,0000985
LHV (BOG) MJ/kg 42,61000 43,50000 45,16000
LNG liquid density D kg/m 449,1345 449,2350 449,4370
Energy of 1m LNG
evaporated into BOG
MJ 19137,621 19541,723 20296,575
LNG (Natural BOG)
Higher Heating Value (HHV)

The higher heating value (also called gross calorific or heating value) specifies the
heat of the total combustion including the heat of the condensation of the steam
from the chemical reaction.

As in most technical firing processes the condensation heat can not be recovered,
the higher heating value is of limited significance for the evaluation of the combustion.



1.2.1 FOE-Factors based on Lower Heating Values (LHV)
For the determination of the different FOE-Factors, the following formula has been
applied.



The boil-off gas composition and therefore its energy content calculated as Lower
Heating Value (LHV) depends on the duration of the voyage as during the first days
the lighter components evaporate first.

The following table shows the natural boil-off gas conditions on the 1
st
, 5
th
and 14
th

voyage day. From this day onwards, the condition of the boil-off gas will remain about
unchanged.

The natural boil-off gas composition is based on the composition of the LNG loaded
(see above Section 1.1).














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LHV (HFO) MJ/kg 960 kg/m 990 kg/m
0 % Sulphur 41,45 41,1
4 % Sulphur 40,3 39,95
Heavy Fuel Oil
LNG liquid density D kg/m 449,1345
LHV MJ/kg 49,12000
Liquid
960 kg/m 0 % Sulphur 0,532
960 kg/m 4% Sulphur 0,547
990 kg/m 0 % Sulphur 0,537
990 kg/m 4% Sulphur 0,552
0,542 Average
HFO
Energy Equivalent tonnes of HFO to 1m LNG
Forced BOG
BOG 1st day BOG 5th day BOG 14th day
960 kg/m 0 % Sulphur 0,4617 0,4715 0,4897
960 kg/m 4% Sulphur 0,4749 0,4849 0,5036
990 kg/m 0 % Sulphur 0,4656 0,4755 0,4938
990 kg/m 4% Sulphur 0,4790 0,4892 0,5080
Average 0,483
Energy Equivalent tonnes of HFO to 1m LNG as Boil-off
HFO
The FOE-Factor also depends on the quality of the HFO. For sensitivity analysis
reasons, we have considered the following 4 qualities of HFO (low and high density
HFO with a sulphur content of 0% or 4%).







Based on the above mentioned energy contents, the FOE-Factors can be determined
as shown in the following table.









If it will be necessary during a voyage to use more gas than the available amount of
natural boil-off gas, then forced evaporization of LNG has to be applied. In this case,
the composition of the boil-off gas will change and the FOE-Factor as shown on the
following table may be used.












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Yemen LNG BOG 1st day BOG 5th day BOG 14th day
Component of BOG
NITROGEN Mol Frac 0,0910000 0,0790000 0,0582000
METHANE Mol Frac 0,9091000 0,9206000 0,9416000
ETHANE Mol Frac 0,0000967 0,0000973 0,0000985
HHV (BOG) MJ/kg 47,28034 48,26607 50,10788
LNG liquid density D kg/m 449,1345 449,2350 449,4370
Energy of 1m LNG
evaporated into BOG
MJ 21235,232 21682,808 22520,335
LNG (Natural BOG)
HHV (HFO) MJ/kg 960 kg/m 990 kg/m
0 % Sulphur 43,94 43,57
4 % Sulphur 42,72 42,35
Heavy Fuel Oil
1.2.2 FOE-Factors based on Higher Heating Values (HHV)
For the determination of the different FOE-Factors, the following formula has been
applied.




The boil-off gas composition and therefore its energy content calculated as Higher
Heating Value (HHV) depends on the duration of the voyage as during the first days
the lighter components evaporate first.

The following table shows the natural boil-off gas conditions on the 1
st
, 5
th
and 14
th

voyage day. From this day onwards, the condition of the boil-off gas will remain about
unchanged.

The natural boil-off gas composition is based on the composition of the LNG loaded
(see above Section 1.1).













The FOE-Factor also depends on the quality of the HFO. For sensitivity analysis
reasons, we have considered the following 4 qualities of HFO (low and high density
HFO with a sulphur content of 0% or 4%).

=
LNG m
tonnesHFO
HFO HHV
BOG HHV liquidLNG D
valent EnergyEqui
1000 * ) (
) ( * ) (
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BOG 1st day BOG 5th day BOG 14th day
960 kg/m 0 % Sulphur 0,4833 0,4935 0,5126
960 kg/m 4% Sulphur 0,4971 0,5076 0,5272
990 kg/m 0 % Sulphur 0,4874 0,4977 0,5169
990 kg/m 4% Sulphur 0,5015 0,5120 0,5318
Average 0,506
Energy Equivalent tonnes of HFO to 1m LNG as Boil-off
HFO
LNG liquid density D kg/m 449,1345
HHV MJ/kg 54,28667
Liquid
960 kg/m 0 % Sulphur 0,555
960 kg/m 4% Sulphur 0,571
990 kg/m 0 % Sulphur 0,560
990 kg/m 4% Sulphur 0,576
0,565 Average
Forced BOG
Energy Equivalent tonnes of HFO to 1m LNG
HFO
Based on the above mentioned energy contents, the FOE-Factors can be determined
as shown in the following table.









If it will be necessary during a voyage to use more gas than the available amount of
natural boil-off gas, then forced evaporization of LNG has to be applied. In this case,
the composition of the boil-off gas will change and the FOE-Factor as shown on the
following table may be used.













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2 Summary
The average FOE-Factors can be summarised as follows.

a) Based on the Lower Heating Values (LHV)

Natural Boil-off: FOE = 0.483

Forced Boil-off: FOE = 0.542

b) Based on the Higher Heating Values (HHV)

Natural Boil-off: FOE = 0.506

Forced Boil-off: FOE = 0.565

The LNG produced by the Yemen LNG Project has in the liquid phase a very low
Nitrogen content which results in a relatively low Nitrogen content in the natural Boil-
off gas.

Therefore, the heating values of the natural Boil-off gas are exceptionally high,
resulting in high FOE-Factors.

Our calculation is based on the preliminary composition of the Yemen LNG. The
FOE-Factors should be reviewed and adjusted, if necessary, when the final
composition is known and proven.