© 2018 Bureau Veritas Marine & Offshore 1 S. Korea – September 3, 2019
LNG Shipping Market
IGU Joint Meeting of LNG and Transmission Committee
September 3, 2019 – Gyeongju (S.Korea)
Carlos GuerreroGlobal Market Leader - Tankers & Gas CarriersBureau Veritas Marine & Offshore
© 2018 Bureau Veritas Marine & Offshore 2 S. Korea – September 3, 2019
ORIGINS
Foundation
of the “Information
Office for Maritime”
MODERN INDUSTRIAL
REVOLUTION
New activities to accompany
industrial expansion
TECHNICAL
PROGRESS
Active role in modernizing ship
building standards
for classification of vessels
Reinforcement of expertise
in construction and energy
efficiency
TECHNICAL
PROGRESS
Inspectorate and Maxxam
joined BV group to develop
the Commodities business
and in high-potential markets
Expansion of the geographical
footprint in the construction
and consumer products
industries in China
GLOBALIZATION
Development of Certification
& Government services
Reinforcement of the network
with new offices in Africa,
China, the US and in Europe
1828
1920’s
1960’s
2010’s
1990’s
Bureau Veritas - More than 190 years of history
© 2018 Bureau Veritas Marine & Offshore 3 S. Korea – September 3, 2019
Forecast on LNG TradeSupply and Demand Balance
On short term approx. 30 mmtpa add for 2019 and 2020 (8-10% growth yoy)
Analysts see a path of around 5% growth yoy thereafter
LNG expected to double by 2040 (approx. 650 mmtpa)
© 2018 Bureau Veritas Marine & Offshore 4 S. Korea – September 3, 2019
A Highly Dynamic LNG Market
LNG Market is evolving and growing� New terminals in Australia, US, Africa and Russia
� New routes (Panama canal, NSR-Arctic, etc)
� Japan, S. Korea, China leading the importers
� Qatar and Australia leading the exporters
� Increasing appetite from new countries (S.E.A, S.A. M.E., etc)
� Quick response to demand with floating solutions (FSRU/FSU)
� New markets (small scale and LNG as bunker fuel)
362 373 372386
415445
472
504
535
0
100
200
300
400
500
600
2010 2011 2012 2013 2014 2015 2016 2017 2018
2014: Longest voyage 13,809 nm2017: Longest voyage 15,605 nm
Data from Clarsons Research + Bureau Veritas stats ( 1st January 2019)
Fleet evolution end of year. Active fleet of any size
Courtesy of LNG World Report - IGU
© 2018 Bureau Veritas Marine & Offshore 5 S. Korea – September 3, 2019
Fleet removal. Assumed 5 ships/year removed by:� Demolitions (number started to growth in 2018)
� Conversions (several ongoing and under discussion mainly for MOSS 125k)
Fleet additions. Assumed:� 2019 to 2021. Average fleet deliveries ~ 40 ships/year (some slippage from 2019 to 2020 and 2021)
� 2022 to 2023. Average fleet deliveries ~ 35 ships/year
� 2019 new orders ~ 60-65 LNGc (deliveries 2021, 2022 and 2023)
� 2020 & 2021 new orders to slow down, otherwise pressure on charter rates may rise
Net Fleet Evolution and ForecastLNGc Over 40,000 m3 (active fleet)
2 16 33 28 30 27 524 3 3 3 2 2 5
348 361 390 415 442 466 513 548 583 618 648 678
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Deliveries No. Demolition No. Net Fleet No. Forecast Fleet No.
© 2018 Bureau Veritas Marine & Offshore 6 S. Korea – September 3, 2019
Present Challenges and OpportunitiesSpecific Solutions for Standard and Niche Markets
Standard LNG carriers. Charterers demand full flexibility� Low BOR / Efficient Propulsion / Reliquefaction
� High terminal compatibility (ships design)
� Ship operations evolving. Reloads, partial deliveries, STS, etc
Part of demand driven by fast track projects� FSRU and FSU
� Conversions will also remove tonnage (double advantage)
LNG as fuel for marine applications� IGF fleet growing at a low pace for the moment
� Small scale and LNG bunkering solutions
� Demand negligible on short term (2-3 mmtpa expected in 2020)
Swift from coal/oil to gas for power plants� Floating power plants in combination with FSU and FSRU soon using LNG
� LNG to power applications. Small scale S.E.A. and Caribbean sea
© 2018 Bureau Veritas Marine & Offshore 7 S. Korea – September 3, 2019
CCS - Some Stats of the Standard LNGc FleetLNG carriers over 40,000 m3 (as of Jan 2019)
385
1253
CCS Fleet in number of ships
Membrane
Type B - Moss
Type B - IHI
Membrane systems
Old systems (10 ships)
� Gaz Transport 85&88
� Technigaz Mark I
� GTT CS1
Modern systems (375 ships)
� GTT NO96
� GTT Mark III
� Korea Gas KC-1
104
10 3
CCS On order in number of ships
Membrane
Type B - Moss
Type B - IHI
Membrane systems
GTT systems
� GTT NO96 (47 at DSME and Hudong-Z.)
� GTT Mark III (57 at HHI/HSHI, SHI and Imabari)
Type B systems
� Moss (10 at KHI and MHI)
� IHI SPB (3 at JMU)
© 2018 Bureau Veritas Marine & Offshore 8 S. Korea – September 3, 2019
Propulsion - Some Stats of the Standard LNGcLNG carriers over 40,000 m3 (as of Jan 2019)
80
33
22
Propulsion on order in number of ships
2-Stroke
DFDE
Non Disclosed
Steam
2-Stroke DF
� MEGI (36 ships)
� XDF (44 ships)
DFDE (TFDE)
� Mainly MHI, KHI and Hudong-Z.
256
49
170
38
Propulsion Fleet in number of ships
Steam
Diesel
DFDE
2-Stroke
2-Stroke DF
� MEGI (31 ships by DSME, SHI, HHI and Imabari)
� XDF (8 ships by SHI and HHI)
Modern steam turbine systems (18 ships)
� MHI, KHI and HHI
© 2018 Bureau Veritas Marine & Offshore 9 S. Korea – September 3, 2019
Tailor Made vs. Integrated Systems
� DSME XDF and MEGI MRS (up to 3.8 t/h) � Babcock ecoSMRT(R)� Air Liquide Turbo Brayton sub-cooling system
Reliquefaction and Subcooling SystemsAdditional Flexibility – Choosing the Fuel
Courtesy of DSME
ME-GI with MRS
© 2018 Bureau Veritas Marine & Offshore 10 S. Korea – September 3, 2019
BV World BV Share
Fleet 95 559 ~17%
BV World BV Share
Orderbook 27 144 ~18,75%
BV holds 20% of world 2018 orders
Innovative LNG carriers at the core of BV
LNG carriersBV at the Core of the Business
Solutions in line with client’s needs� New propulsion and containment systems
� Regasification and storage ships (FSRU/FSU)
� New routes: Arctic LNG carriers
� Small scale and LNG bunkering
� Multipurpose gas carriers
155,000 m3 LNGc
HHI for Dynagas (2013)
Data from Clarsons Research + Bureau Veritas stats ( 1st March 2019)
© 2018 Bureau Veritas Marine & Offshore 11 S. Korea – September 3, 2019
Classification and SolutionsThe BV Scope of Work
GAP analysis. IGC Code
� Free access document for the industry stakeholders
� Deep involvement in IACS and IMO for the ongoing discussions
Comprehensive List of Solutions (Provided by BV Solutions)� Ship’s energy efficiency services� Structural assessment including ice reinforcement� Vibration and noise analysis� Shaft alignment� Emergency response services� Condition assessment programs and life extension programs� Sloshing studies� Risk analysis
Classification Rules & Flag Delegation
© 2018 Bureau Veritas Marine & Offshore 12 S. Korea – September 3, 2019
182,000 m3 LNGc
KHI for K-LINE (2018)
BV in Expert Shipyards
180,000 m3 LNGc
DSME for MOL (2018)172,000 m3 ARC7 LNGc
DSME for Dynagas (2019)
180,000 m3 LNGc
SHI for SK Shipping (2017)
170,000 m3 LNGc
HHI for SCI&J3 (2016)
160,000 m3 LNGc
STX for Alpha Gas (2015)
180,000 m3 LNGc
SHI for SK Shipping (2017)
Largest ever and first ever DFDE Moss type
First ever XDF & largest Mark III 4 tanks
First XDF at DSME Largest 4 tanks NO96
© 2018 Bureau Veritas Marine & Offshore 13 S. Korea – September 3, 2019
SHI / SK Shipping
2 x 180,000 m3 LNGc
� Largest 4 tanks Mark III Flex
� First XDF ever
� 2 x 6X62DF
� No Reliq
� Optimized hull form (CFD - Hydrocean)
� SEECAT tool
� Comparison XDF / MEGI / DFDE
Item Propulsion System
Consumption
(tons)DFDE HPLS LPLS
GCU 187 290 228
FBOG 978 690 738
NBOG 2,633 2,633 2,633
Total Gas 3,424 3,032 3,143
Pilot fuel 32 150 65
Total CO2
10,019
(Base)
9,549
(-4.7%)
9,449
(-5.7%)
© 2018 Bureau Veritas Marine & Offshore 14 S. Korea – September 3, 2019
DSME / MOL
1 x 180,000 m3 LNGc
� Largest 4 tanks GTT NO96
� First XDF for DSME
� Tier III compliant in gas mode
� Zero GCU operation
� New full reliquefaction system (FRS) ~ 3.1-3.8 t/h
� Optimized hull form
� Combined GCU/IGG
I ����HULL ����MACH Liquefied gas carrier, -dualfuel, ESA,Unrestricted Navigation, ����Veristar-Hull CM DFL 40 years,CPS(WBT), ����AUT-UMS, MON-SHAFT, INWATERSURVEY,����SYS-NEQ-1 , CLEANSHIP, BWT, LI-HG-S3, ERS-S,GREENPASSPORT
© 2018 Bureau Veritas Marine & Offshore 15 S. Korea – September 3, 2019
PC3 (Arc7) LNGc Dual class BV/RMRS (DSME to SCF, MOL, Teekay and Dynagas)
� FID in 2012
� 15 ships for YAMAL LNG terminal
� Membrane ships NO96 with DFDE propulsion
� Capacity and flexibility to call different terminals
� Prepared for operation down to -51 Celsius
YAMAL LNG
IN SERVICE ARCTIC LNG CARRIERS (end 2018)
CHRISTOPHE DE MARGERIE
BORIS VILKITSKY
FEDOR LITKE
EDUARD TOLL
VLADIMIR RUSANOV
VLADIMIR VIZE
RUDOLF SAMOYLOVICH
GEORGIY BRUSILOV
Risk HAZard IDentification
� Marine HAZID 2011� PROCAL risk analysis� Shipyards Arctic LNGc design
Ice Hazards
Selection of containment system
Selection of propulsion system
Winterization
� Navigation in ICE, structural analysis� IceSTAR combined with FEM analysis
� Accelerations for ice conditions
© 2018 Bureau Veritas Marine & Offshore 16 S. Korea – September 3, 2019
BV is pioneering and leading class society
� BV has become leader on classification of FSRU andassociated services for shipowners, shipyards and otherstakeholders
� First newbuilt FSRU in 2005
� The largest ever (263,000 m3)
� Services to the industry to offer 2nd party assessment
� BV leader in the development of specific notations,regulations and tools
12 BV ClassIn Service
Dedicated Rules and Tools
BV ClassDeep involvement in FS(R)Us
Regasification notation “RV” developed
Classification of the first newbuilt FSRU“EXCELSIOR”
Classification of the 173.400 m3 FSRU“EXPERIENCE”
“REGAS” notation replaces “RV”
New set of Classification Rules NR.645
Classification of the largest ever FSRU
2005
2014
2017
Guidelines for the conversion of LNGc intoFSRU or FSU (NI.655)
2018
© 2018 Bureau Veritas Marine & Offshore 17 S. Korea – September 3, 2019
Largest FSRU ever built (DSME / MOL)
� MOL FSRU Challenger - 263 000 m3 capacity (Q-Max)
� 5 cargo tanks NO96 membrane system
� Extensive structural and sloshing analysis
FSRU’s at SHI and HHI with BV
� HHI / Turquoise 170,000 m3 – just delivered
� Hi-ReGAS System
� SHI / PT Jawa Satu (Indonesia) signed in 2018
MOL FSRU Challenger & Other FSRU’s on Order
© 2018 Bureau Veritas Marine & Offshore 18 S. Korea – September 3, 2019
Supporting STS LNG Bunkering
NR.620 “LNG Bunkering Ship” notation� Additional notations (optional) cover key aspects
� RE: Recovery of LNG
� Initial-CD: Cooling down
� IG: Inert gas supply
� BOG: Boil off gas management
� Specific assessment for LNG bunker systems
� Flexible hoses plus cranes, transfer arms or a combination
� Assessment Bureau Veritas rule NR.620 (section 4) / Risk analysis
LNG bunkering guidelines ( NI.618 / IACS / SGMF )
Risk analysis full LNG as fuel chain4
2
1
1
LBV Fleet in service
BV (5,100+5,800+660+7,500 m3)
LR (6,500+7,500 m3)
ABS (2,200 m3)
DNV GL (180 m3)
BV Class LNG Bunkering Vessels & BargesName / Yard Cap. (m3) StatusCORAL METHANE 7.500 Converted / In serviceENGIE ZEEBRUGGE 5.100 Delivered / In serviceCORALIUS 5.800 Delivered / In serviceOIZMENDI 660 Converted / In serviceBUNKER BREEZE (*) 1.200 Delivered / In serviceFLEXFUELLER 1.480 On order / 2019FLEXFUELLER II 1.480 On order / 2020LNG London 3.000 On order / 2020Hudong-Z. 18.600 On order / 2020Damen Yichang 6.000 On order / 2020Keppel Nangtong 5.800 On order / 2020Sembacorp 12.000 On order / 2021(*) LNG bunkering ready
© 2018 Bureau Veritas Marine & Offshore 19 S. Korea – September 3, 2019
The 1st Ever Newbuilt LNG bunkering ship…
2 x Type C tanks 5.100 m3 + DF
� Project development started in 2012
� HAZID of the bunker vessel operation in the port of Zeebrugge - March 2013
� Classification at HHIC in 2014 & delivery in February 2017
� HAZOP of LNG transfer system in order to support its qualification as per BV NR620
� Complete assessment of the transfer system as per NR.620
5.100 m3 LNG bunkering vessel “ENGIE ZEEBRUGGE” built at HHIC - Courtesy of ENGIE
© 2018 Bureau Veritas Marine & Offshore 20 S. Korea – September 3, 2019
MOL 18,600 m3 LNG Bunkering ship under construction at Hudong (China)� Ship chartered by TOTAL
� Cargo capacity as per client request (ultra large container ships dualfuel for CMA-CGM)
� 2 x Mark III Flex membrane cargo tanks / No filling restrictions. Sloshing assessment
� DF engines / DE propulsion
� Reliquefaction system
� High manoeuvrability
� High bunkering rate
� Delivery date Q1 2020
… and The largest LNG bunkering ships
MOL 12,000 m3 under construction at Sembcorp (Singapore) also with GTT technology
© 2018 Bureau Veritas Marine & Offshore 21 S. Korea – September 3, 2019
The first ever ethane fueled ships
� Dragon Series built in Sinopacific and Jiangsu New Yangzi (8 ships)
� One of the largest multipurpose gas carriers in service
� 4-stroke main engines Wartsila 50DF (ethane)
� Large bilobe type C tanks (27,500 m3 total volume)
Multipurpose Gas Carriers
Coral Methane built by Remontowa for Anthony Veder
(2009)
Ineos Insight built by Sinopacificfor Evergas (2015)
First multi-purpose gas carrier. Upgraded forbunkering operations
� Size (7,500 m3) very suitable for bunkering purposes
� Specific bunkering transfer system
� Sub-cooling system Air Liquide (0,5 t/h)
© 2018 Bureau Veritas Marine & Offshore 22 S. Korea – September 3, 2019
BV at the forefront and ready to support
� Mark III Flex + (December 2017)
� NO 96 Flex (September 2018)
� CCS crossing (filling limits vs. vapor pockets)
� NO96 pressurization system evolution
� Reduced cooling down
� Application of the latest CCS technologies for PC3
Assessment of the Latest Technologies
GTT new technologies and evolutions
Modern Systems� 2 Stroke HP and LP solutions (ME-GI and XDF)
� FGSS. 6-stage cryostar, Burkhardt, etc
� Reliquefaction systems (Air Liquide, ecoSMRT®, etc)
� Regasification systems (experience with DSME, SHI and HHI)
© 2018 Bureau Veritas Marine & Offshore 23 S. Korea – September 3, 2019
Significant LNG trade growth & enlarged buyers club (Asia and Europe to lead)
Average voyage distance key in the equation of future LNGc demand
LNGc: the backbone of global LNG infrastructure
Modern standard LNGc designs target full flexibility
Growing path for niche markets (FSRU/FSU, LNG to power, LNG bunkering)
Bureau Veritas fully skilled and prepared to assist (Class and Services)
Conclusions
© 2018 Bureau Veritas Marine & Offshore 24 S. Korea – September 3, 2019
Thank YouContact:
Carlos [email protected]
+33 640 177 982
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