Small Scale to large Market Strategies & Technologies towards the Mediterranean Area The future of LNG fuelled shipping Bartlomiej Z. Kolosowski
The future of LNG fuelled shipping Demand: Status for LNG fuelled ships Demand: The LNG environmental solution Supply: LNG bunkering infrastructure
DEMAND Status for LNG fuelled ships 3
102 LNG fuelled ships in operation worldwide (1/2) Year Type of vessel Owner Class 2000 Car/passenger ferry Fjord1 DNV GL 2003 PSV Simon Møkster DNV GL 2003 PSV Eidesvik DNV GL 2006 Car/passenger ferry Fjord1 DNV GL 2007 Car/passenger ferry Fjord1 DNV GL 2007 Car/passenger ferry Fjord1 DNV GL 2007 Car/passenger ferry Fjord1 DNV GL 2007 Car/passenger ferry Fjord1 DNV GL 2008 PSV Eidesvik Shipping DNV GL 2009 PSV Eidesvik Shipping DNV GL 2009 Car/passenger ferry Tide Sjø DNV GL 2009 Car/passenger ferry Tide Sjø DNV GL 2009 Car/passenger ferry Tide Sjø DNV GL 2009 Patrol vessel Remøy Management DNV GL 2009 Car/passenger ferry Fjord1 DNV GL 2010 Patrol vessel Remøy Management DNV GL 2010 Car/passenger ferry Fjord1 DNV GL 2010 Patrol vessel Remøy Management DNV GL 2010 Car/passenger ferry Fjord1 DNV GL 2010 Car/passenger ferry Fjord1 DNV GL 2010 Car/passenger ferry Fosen Namsos Sjø DNV GL 2011 PSV DOF DNV GL 2011* Oil/chemical tanker Tarbit Shipping DNV GL 2011 Car/passenger ferry Fjord1 DNV GL 2011 PSV Solstad Rederi DNV GL 2012* Car/passenger ferry Fjord1 DNV GL * Conversion project Ships in operation Year Type of vessel Owner Class 2012 PSV Eidesvik DNV GL 2012 PSV Olympic Shipping DNV GL 2012 PSV Island Offshore DNV GL 2012 General Cargo Nordnorsk Shipping DNV GL 2012 PSV Eidesvik Shipping DNV GL 2012 PSV Island Offshore DNV GL 2012 Car/passenger ferry Torghatten Nord DNV GL 2012 Car/passenger ferry Torghatten Nord DNV GL 2012 Car/passenger ferry Torghatten Nord DNV GL 2013 PSV REM DNV GL 2013 RoPax Viking Line LR 2013 Car/passenger ferry Torghatten Nord DNV GL 2013 Tug Incheon Port Authority KR 2013 General Cargo Eidsvaag DNV GL 2013 RoPax Fjordline DNV GL 2013 High speed RoPax Buquebus DNV GL 2013 Tug CNOOC CCS 2013 Tug CNOOC CCS 2013 Car/passenger ferry Norled DNV GL 2014 Car/passenger ferry Norled DNV GL 2014 Tug Buksér & Berging DNV GL 2014 RoPax Fjordline DNV GL 2014 Patrol vessel Finish Border Guard DNV GL 2014 Tug Buksér & Berging DNV GL 2014 Gas carrier Anthony Veder BV 2014 Gas carrier Anthony Veder BV Excluding LNG carriers and inland waterway vessels 4
102 LNG fuelled ships in operation worldwide (2/2) Year Type of vessel Owner Class 2014 PSV Remøy Shipping DNV GL 2014 General Cargo Egil Ulvan Rederi DNV GL 2014 General Cargo Egil Ulvan Rederi DNV GL 2014 PSV Siem Offshore DNV GL 2015 PSV Harvey Gulf Int. ABS 2015 Ro-Ro Norlines DNV GL 2015 Car/passenger ferry Samsoe municipality DNV GL 2015 PSV Simon Møkster Shipping DNV GL 2015 PSV Siem Offshore DNV GL 2015 Ro-Ro Norlines DNV GL 2015* Oil/chemical tanker Bergen Tankers LR 2015 Car/passenger ferry Society of Quebec ferries LR 2015 Gas carrier Evergas BV 2015 Gas carrier Evergas BV 2015 Tug CNOOC CCS 2015* Car/passenger ferry AG Ems DNV GL 2015 Tug NYK NK 2015 Gas carrier Chemgas Shipping BV 2015 Gas carrier Evergas BV 2015 PSV Harvey Gulf Int. ABS 2015 Container ship TOTE Shipholdings ABS 2015 Car/passenger ferry AG EMS DNV GL 2015 Bulk ship Erik Thun LR 2016 Container ship TOTE Shipholdings ABS 2016 Gas carrier Evergas BV 2016 PSV Harvey Gulf Int. ABS 2016 Bulk ship Erik Thun LR * Conversion project Ships in operation Year Type of vessel Owner Class 2016 Oil/chemical tanker Terntank BV 2016 Gas carrier Navigator Gas ABS 2016* Oil/chemical tanker Furetank Rederi BV 2016 Icebreaker Arctica Shipping LR 2016 Car/passenger ferry Boreal Transport Nord DNV GL 2016 Car/passenger ferry Boreal Transport Nord DNV GL 2016 Tug CNOOC CCS 2016 Gas carrier Chemgas Shipping BV 2016 Car carrier UECC LR 2016 Oil/chemical tanker Terntank BV 2016 Oil/chemical tanker Terntank BV 2016 Car/passenger ferry BC Ferries LR 2016 Gas carrier Evergas BV 2016 PSV Siem Offshore DNV GL 2016 Car/passenger ferry Seaspan Ferries Corp. BV 2016 Gas carrier Navigator Gas ABS 2016 Ro-Ro Searoad Holdings DNV GL 2016 Car carrier UECC LR 2017 Gas carrier Navigator Gas ABS 2017 Car/passenger ferry Seaspan Ferries Corp. BV 2017* RoPax Baleària BV 2017 RoPax Tallink BV 2017 Gas carrier Ocean Yield DNV GL Excluding LNG carriers and inland waterway vessels 5
108 confirmed LNG fuelled newbuilds (1/3) Year Type of vessel Owner Class 2017 Car/passenger ferry Society of Quebec ferries LR 2017 Car/passenger ferry Society of Quebec ferries LR 2017 Tug Drydocks World 2017 PSV Siem Offshore DNV GL 2017 Gas carrier Evergas BV 2017 PSV Siem Offshore DNV GL 2017* Ro-Ro TOTE Shipholdings ABS 2017 Car/passenger ferry BC Ferries LR 2017 Gas carrier Ocean Yield DNV GL 2017 Gas carrier Navigator Gas ABS 2017 Dredger DEME BV 2017 Dredger DEME BV 2017* Container ship Wessels Reederei BV 2017 Hopper Barge Bremenports DNV GL 2017 HSLC Fred. Olsen DNV GL 2017 PSV Harvey Gulf Int. ABS 2017 PSV Harvey Gulf Int. ABS 2017 Cable layer DEME Tideway DNV GL 2017 Gas carrier Evergas BV 2017 Gas carrier Evergas BV 2017 Tug Østensjø Rederi BV 2017 Tug Østensjø Rederi BV 2017 Tug Østensjø Rederi BV 2017* Car/passenger ferry BC ferries ABS 2017 RoPax Rederi AB Gotland DNV GL 2017 Car/passenger ferry Caronte & Tourist RINA * Conversion project Confirmed orderbook Year Type of vessel Owner Class 2017 Oil/chemical tanker Groupe Desgagnés BV 2017 Oil/chemical tanker Groupe Desgagnés BV 2017 Oil/chemical tanker Groupe Desgagnés BV 2017 Oil/chemical tanker Groupe Desgagnés BV 2017 Car/passenger ferry BC Ferries LR 2017 Oil/chemical tanker Terntank BV 2017 Container ship Crowley Maritime Corp. DNV GL 2017 Container ship Crowley Maritime Corp. DNV GL 2017 Container ship Brodosplit DNV GL 2017 Bulk ship POSCO KR 2018 Container ship Brodosplit DNV GL 2018 Bulk ship ESL Shipping DNV GL 2018 Bulk ship ESL Shipping DNV GL 2018 Tug Keppel Smit Towage ABS 2018 Tug Maju Maritime ABS 2018* Car/passenger ferry BC ferries ABS 2018 PSV Harvey Gulf Int. ABS 2018 Container ship Brodosplit DNV GL 2018 Container ship Brodosplit DNV GL 2018 Car/passenger ferry Royal Doeksen LR 2018 Car/passenger ferry Royal Doeksen LR 2018 Car/passenger ferry CHFS LR 2018 Car/passenger ferry CHFS LR 2018* Ro-Ro TOTE Shipholdings ABS 2018 RoPax Rederi AB Gotland DNV GL 2018 General cargo ship Nordnorsk Shipping DNV GL Excluding LNG carriers and inland waterway vessels 6
108 confirmed LNG fuelled newbuilds (2/3) Year Type of vessel Owner Class 2018 Container ship Containerships ABS 2018 Container ship Containerships ABS 2018 Container ship GNS Shipping ABS 2018 Container ship GNS Shipping ABS 2018 Container ship GNS Shipping ABS 2018 Container ship GNS Shipping ABS 2018 Heavy lift vessel Heerema Offshore LR 2018 Oil/chemical tanker Furetank Rederi BV 2018 Oil/chemical tanker Furetank Rederi BV 2018 Oil/chemical tanker Furetank Rederi BV 2018 Dredger DEME BV 2018 Dredger van der Kamp DNV GL 2018 Oil/chemical tanker Thun Tankers 2018 Oil/chemical tanker SCF 2018 Oil/chemical tanker SCF 2018 Car/passenger ferry Torghatten 2018 Car/passenger ferry Torghatten 2018 Car/passenger ferry Torghatten 2018 Car/passenger ferry Torghatten 2019 Car/passenger ferry Torghatten 2019 Oil/chemical tanker SCF 2019 Oil/chemical tanker SCF 2019 Oil/chemical tanker Thun Tankers 2019 Oil/chemical tanker Thun Tankers 2019 Oil/chemical tanker Thun Tankers * Conversion project Confirmed orderbook Year Type of vessel Owner Class 2019 Cruise ship Carnival Corporation RINA 2019 Cruise ship Carnival Corporation RINA 2019 Oil/chemical tanker Älvtank BV 2019 Oil/chemical tanker Älvtank BV 2019 Oil/chemical tanker Thun Tankers BV 2019 Offshore installation ship DEME DNV GL 2019 Dredger DEME BV 2019 RoPax Baleària BV 2019 Car carrier Siem Car Carriers 2019 Car carrier Siem Car Carriers 2019 Emergency response ship German Transport Ministry 2019 Emergency response ship German Transport Ministry 2019 RoPax Brittany Ferries 2019 RoPax Baleària 2019 RoPax Baleària 2019 Oil/chemical tanker Rosneft 2020 Oil/chemical tanker Rosneft 2020 Oil/chemical tanker Rosneft 2020 Oil/chemical tanker Rosneft 2020 Oil/chemical tanker Rosneft 2020 Research ship German Transport Ministry 2020 RoPax Viking Line 2020 Cruise ship Carnival Corporation RINA 2020 Cruise ship Carnival Corporation Excluding LNG carriers and inland waterway vessels 7
108 confirmed LNG fuelled newbuilds (3/3) Year Type of vessel Owner Class 2021 Cruise ship Carnival Corporation 2021 Cruise ship Carnival Corporation 2022 Cruise ship Carnival Corporation RINA 2022 Cruise ship MSC Cruises 2022 Cruise ship RCCL 2024 Cruise ship MSC Cruises 2024 Cruise ship RCCL Confirmed orderbook * Conversion project Excluding LNG carriers and inland waterway vessels 8
Area of operation of LNG fuelled vessels Excluding LNG carriers and inland waterway vessels 9
Number of ships There are currently 201 confirmed LNG ship fuel projects 200 180 160 140 Ships in operation Ships on order 71 93 101 103 106 106 108 120 38 100 80 97 102 102 102 102 102 102 102 102 60 75 40 20 0 1 1 1 3 3 3 4 8 9 15 21 25 35 45 56 Year of delivery Additional orders beyond 2018 are confirmed Excluding LNG carriers and inland waterway vessels 1
Number of ships There are currently 201 confirmed LNG ship fuel projects 350 300 250 Ships in operation Ships on order LNG ready ships 74 77 77 77 77 77 200 70 150 100 14 37 97 56 71 93 101 103 106 106 108 38 102 102 102 102 102 102 102 102 50 0 1 1 1 3 3 3 4 8 9 15 21 25 35 45 56 75 Year of delivery Additional orders beyond 2018 are confirmed Excluding LNG carriers and inland waterway vessels 1
Class society DNV GL trusted partner for LNG fuel projects LNG fuelled fleet by class society DNV GL BV ABS LR RINA In operation On order CCS NK KR Not decided 0 20 40 60 80 100 Excluding LNG carriers and inland waterway vessels 1
Bulk ship Car carrier Car/passenger ferry Container ship Cruise ship Gas carrier General Cargo HSLC Oil/chemical tanker Patrol vessel PSV RoPax Ro-Ro Tug Specialized vessel LNG uptake by vessel segment 50 16 In operation On order 45 40 35 30 31 5 24 5 25 20 15 3 2 2 13 2 11 13 1 4 1 6 4 20 7 5 2 3 6 7 12 2 10 5 0 Excluding LNG carriers and inland waterway vessels 1
All engine concepts are in use for ship propulsion Excluding LNG carriers and inland waterway vessels 1
AIS data from LNGi shows that LNG fuelled ships are already covering a large area The heat map is based on the LNG fuelled fleet s AIS positions from 27.11.2016-07.12.2016 1
DEMAND The LNG environmental solution 1
Rules are a key driver of demand EU Sulphur directive is a key driver MARPOL Annex VI ratified May 19 th MARPOL Annex VI global S limit 4.5% May 19 th MARPOL Annex VI SECA1, S limit 1.5% Nov 11 th MARPOL Annex VI SECA2, S limit 1.5% July 1 st ECA limit down to 1.00% S Jan 1 st Global limit down to 3.50% Jan 1 st ECA limit down to 0.10% S Global S limit down to 0.50% Review Global S limit down to 0.50% (subject to review)* 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 Aug 11 th SECA 1, directive into force 1.5% S Aug 11 th SECA 2, directive into force 1.5% S Jan 1 st Directive S limit of 0.1% at berth EU Sulphur Directive, 2012 EU Sulphur Directive, 2012 SECA 0.1% EU Sulphur Directive, 2020 all EU waters 0.5% 17
LNG today faces weak technological alternatives in the environmental play LNG DF LNG LS fuel HFO & Scrubbe r HFO & SCR DF LNG LS fuel IFO & Scrubber DF LNG & EGR IFO & SCR IFO & EGR PM Port SOx ECA NOx US ECA CO2 EEDI (*) (*) PM Port SOx ECA NOx ECA CO2 EEDI (*) (*) (*) requires energy Potential compliance for technology/fuel options, 4 stroke engines DF: Dual Fuel Potential compliance for technology/fuel options, 2stroke engines LS: Low Sulphur HFO: Heavy Fuel Oil SCR: Selective catalytic reduction IFO: Intermediate Fuel Oil EGR: Exhaust Gas Recirculation 18
Number of ships Investments in scrubbers are higher in total numbers but LNG fuel is the most frequent choice for newbuilds 375 350 325 300 275 250 225 200 175 150 125 100 75 50 25 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Others Bulk ship Gas carrier PSV Tankers Container ship *Number of ships are shown. Number of scrubber units are higher. Excluding LNG carriers and inland waterway vessels General Cargo Ro-Ro Cruise/Ferry Total LNG retrofit LNG newbuild Scrubber retrofit Scrubber newbuild 1
SUPPLY LNG bunkering infrastructure 2
54 LNG supply locations for ships worldwide today, and many more decided and planned* *There may be several bunkering facilities/modes for one location. The count includes local storages, bunker ship loading facilities and truck loading facilities. Locations where LNG fuelled ships can be bunkered by truck or by ship is not counted. 2
The majority of LNG supply locations for ships are in Europe* *There may be several bunkering facilities/modes for one location. The count includes local storages, bunker ship loading facilities and truck loading facilities. Locations where LNG fuelled ships can be bunkered by truck or by ship is not counted. 2
All types of LNG supply facilities are being developed* *Some locations have several types of facilities, which is why the number of facilities is higher than the number of locations. Local storage An intermediary LNG storage Tank to ship bunkering A local storage where an LNG fuelled ship can bunker directly from shore Truck loading facility A terminal where LNG trucks can load LNG Bunker Ship loading facility LNG terminal accessible by small LNG carriers 2
Within end of 2017 there will be 6 LNG bunker vessels in operation* *In the LNGi map bunkering barges for inland waterway vessels are also shown, but these projects are not counted here. 2
LNGi shows a clutter of LNG bunker vessels coming in Europe *In the LNGi map bunkering barges for inland waterway vessels are also shown, but these projects are not shown here. 2
Questions? Bartlomiej Z. KOLOSOWSKI Bartlomiej.Kolosowski@dnvgl.com +39 342 5070712 www.dnvgl.com SAFER, SMARTER, GREENER 2