GREEN SHIPPING SUMMIT 20152015.gsweek.it/wp-content/uploads/Marco-Golinelli.pdf · •Single-lift module: 32x20x13 m, 945 t dry weight •BOG recondenser capacity: 24 tons/h per train

GREEN SHIPPING SUMMIT 2015

LNG CHAIN: OPPORTUNITIES & LIMITS

Marco A.G. GolinelliWÄRTSILÄ ITALIA ENERGY SOLUTIONS

© Wärtsilä

Efficiency Flexibility Environmentalsolutions

LEA

DE

R IN

Solutions for

Marine /Offshore

Power Generation

Ship Power36%

Power Plants24%

Services40%

• Listed in Helsinki • 4.8 billion € turnover• Solid financial standing

Net sales by business 2014

19,000 professionals

Introduction – Wärtsilä Corporation

© Wärtsilä 18 September 2015 Marco Golinelli

© Wärtsilä

• EU is driving the development of LNG infrastucture out of two reasons

o Enviromental and the EU clean fuel strategy mainly related to the transport sector both at sea and at land with stricter emission legislation.

First SECA area that went into force 1 January 2015 was the Baltic Sea and for part of North Sea with Mediterranean and remaining part of North Sea to follow in 2020 with the aim to have LNG bunkering facitilties in 139 ports.

Blue Corridor with LNG truck filling stations each 400 km and CNG car filling stations each 150 km.

o Security of Supply, with the largely dependance on Russia for EU’s natural gas imports, EU wants to diversify

its natural gas imports by both promote new pipeline like TAP and TANAP as well as increase the number of LNG receiving terminals.

The recent decision for cancellation of the Russia’s South Stream pipeline project has reiterated calls for

the rapid and structured development of an energy union within EU, which will have an impact on the LNG imports and purchasing developments.

Azerbaijan and Turkey are important countries in the Southern Corridor and as partners to EU in this aspect.

• Cost, energy efficiency

• Renewable, infrastructure commonality

LEGENDSECA Sulfur Emission Controlled AreaTAP Trans Adriatic PipelineTANAP Trans Anatolian Natural Gas

Pipeline

WHY LNG? Market Drivers


CO2

NOx

SOx

Particulates

Dual-Fuel enginein gas mode

Dieselengine

0

10

20

30

40

50

60

70

80

90

100

Emissionvalues [%]-25%

-85%

-99%

-95%

LNG cleanest shipping fuel available


Growth of LNG• LNG supply

1990 2005 2020 20350

20

40

60

80

Other Africa Australia US Russia Qatar

1990 2005 2020 20350%

10%

20%

30%

40%

• Shares of global gas consumptionBcf/d Bcf/d

Total trade Pipeline LNG

BP Energy outlook 2035

LNG volume & share of total gas is growing


DMA study LNG demand 1.8 -5.5 million ton in 2020.

DNV high scenario 5.000 LNG fuelled ships globally by 2020.

Availability and price will determinethe market in 2020.

LNG as future volume in shipping


LNG Italy - Assonave


The transition to sustainable and modern energy systems drives the demand for smart power generation.

Economic and environmental reasons increase the growth of gas solutions in marine and power plant markets.

Environmental regulation and increased focus on improved efficiency create demand in the marine industry.

Focusing on three strategic areas

Smart Power Generation

Gas as a fuel Environmental solutions



Biogas

Flare gas

Wärtsilä LNG Value Chain

LNG Tank Trucks30 – 60 m3

Industry

LNG Carrier120 000 – 230 000 m3

Gas pipeline

Residences

LNG storage tank

Gas pre-treatment & Liquefaction System

Gas Field On-shore LNG storage tank & re-gasification

Power Plant

Mining

Costal LNG Feeder

Source

UPSTREAM MIDSTREAM DOWNSTREAM

Process

LNG Feeders10 000 – 60 000 m3

Gas pipelineCostal LNG Feeder


Distribution Consumption

Natural Gas has become the fuel of preference and isexpected to pass coal within a decade or so…

Power Plant10 – 50 MW


SatelliteTerminalLNG

Industry


Port

Gas Processing facility


LNG Import Terminal10 000 – 160 000 m3

Power Plant/Industry5 – 600 MW

SatelliteTerminal500 - 2000 m3

LNG

Wärtsilä LNG Value Chain

UPSTREAM

MIDSTREAM

DOWNSTREAM

Process

Distribution

Small scale LNG Terminal

2000 – 10000 m3

LNG truck loading station

Ship bunkering facility

Ship re-loading system

Re-Gassificationsystem (HP LP)

LNG storage tank


4000 – 300.000 TPA

Power Plant/Industry5 – 50 MW


Tech & services throughout the entire LNG chain


Wärtsilä Dual-Fuel References

MERCHANT SPECIALS DF CONVERSION 2 STROKE DFOFFSHORE DF POWER PLANTS

732 ENGINES 61 ENGINES 28 ENGINES 11 ENGINES132 ENGINES 352 ENGINES

168 LNG carriers

8 Multigas carriers

2 Product tankers

1 Bulk tanker

1 CNG carrier

9 Ferries

6 Tugs

3 ROPAX vessels

1 Navy vessel

1 Icebreaker

1 IWW vessel

1 Guide ship

4 FPSO vessels

2 RORO vessels

1 Chemical tanker

1 Ferry

1 IWW vessel

4 Chemical tankers

4 Container vessels

3 LNG carriers

24 Offshore supply

5 FPSO vessels

4 FSRU vessels

2 Platforms

1 FSO vessel

75 plants

Output 4877 MW

Online since 1997

>1,300 engines >12 million running hours

Wärtsilä Dual-Fuel application references


Landbased LBG referenceMini Scale LBG Liquefaction Plant 3 500TPA

1. MCC2. MR Cooling Plant3. LBG storage tanks4. Filling station for LNG tank trucks5. Glycol pumps and pre cooling plant6. Main plant air cooler7. Gas feed compressor8. CO2 polishing plant

1

2

3

4

6

5

8

7


Small Scale LNG Liquefaction Plant 20000 TPA


Small and medium scale LNG terminals

Tornio, Finland – Regasification & StorageThe main user will be the Outokumpu Tornio steel mill, but also other industries, mines, and gas consumers in the region and will also eventually supply LNG to shipsEPC erection ongoing


Source; SkanGas

Views from part of the LNG Value Chain


LNG production

Storage

LNG import

Main distribution

Local distribution

Power Generation

STS transfer

Source; SkanGas & Wärtsilä

Supply Chain - what is the price of LNG ?


€ 3,13€ 4,23

€ 4,88€ 12,45

€ 0,00

€ 10,00

€ 20,00

€ 30,00

€ 40,00

€ 50,00

€ 60,00

€ 70,00

Commodity Terminal X re-loadingincl BOG surcharge

Shipping Terminal Xto Terminal Y usingsmall LNGC (7.500

m3)

Terminal Y handling,including re-loading in

bunkerbarge (avg)

100 % MGO (avg) -room for

bunkerparties andshipowners to invest

€/MWh Value Chain LNG as bunker fuel – Average Case Example

€ 35,73

€ 60,42T

TF

€26

/MW

h

LNG Value Chain


Energy efficiency

Propulsion

Ship design

EU-support for new technologies/fuels Motorways of Seas /TEN-T etc

Nox fond support for reduction of Nox

Reduction of Fairways Dues

Early movers rebate at Ports

Economical and funding aspects for Ship owner


Biogas

Flare gas

LNG Chain industrial opportunities for Italy


Industry

LNG Carrier120 000 – 230 000 m3

Residences

LNG storage tank


Gas Field On-shore LNG storage tank & re-gasification

Power Plant

Mining

Costal LNG Feeder

Source

UPSTREAM MIDSTREAM DOWNSTREAM

Process

LNG Feeders10 000 – 60 000 m3

Gas pipelineCostal LNG Feeder


Distribution Consumption




Industry


Port

Gas Processing facility


LNG Fleet todayLNG Ships < 100 000 m3 (Small)~18 SHIPS GLOBALLY

LNG Ships 100 000 – 200 000 m3 (Standard)~ 280 SHIPS GLOBALLY

LNG Ships 200 000 – 250 000 m3 (Q-Flex)~ 31 SHIPS GLOBALLY

LNG Ships < 250 000 m3 (Q-Max)~13 SHIPS GLOBALLY

About 15 FSRU in operation + 6 terminals under construction(and about 80 onshore import terminals with LNG storage tanks)

22 April 2014

LNG TransportationLNG Carriers (LNGC) and FSRU’s

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=hMqW_N95lvVauM&tbnid=ILF2uWs2PsAC_M:&ved=0CAUQjRw&url=http://www.motorcycle-usa.com/3511/Motorcycle-Photo-Gallery-Photo/2007-Kawasaki-Tour---2.aspx&ei=gbBPU-WLOIfCyQO7wIHQCA&bvm=bv.64764171,d.bGQ&psig=AFQjCNGt5DmZIkLzeVan0ZunzGL44g8Nyg&ust=1397817824751508

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=hMqW_N95lvVauM&tbnid=ILF2uWs2PsAC_M:&ved=0CAUQjRw&url=http://www.motorcycle-usa.com/3511/Motorcycle-Photo-Gallery-Photo/2007-Kawasaki-Tour---2.aspx&ei=gbBPU-WLOIfCyQO7wIHQCA&bvm=bv.64764171,d.bGQ&psig=AFQjCNGt5DmZIkLzeVan0ZunzGL44g8Nyg&ust=1397817824751508

They say so


• In the Nordics and Baltics there are already several terminals and production facilities.

• Different sizes of terminals are under construction and being planned in the region.

• EU and national funding.

• The infrastructure is being developed

They did it so!


Let’s do it!


• LNG is an environmental and economical opportunity

• LNG will be the energy of the 21st century (and Wärtsilä LNG Business have just started and is here to stay)

• LNG is an opportunity for the entire industrial chain (on and off-shore)

• Italy (government, industries and all stake holders) to keep the focus on LNG

• Stop powerpointing and let’s do it

ENERGY

LNG IS

THE FUTUREAlready today !

Summary & Conclusion


Back-up

• Small to medium scale LNG terminal market expected to grow

• Increasing demand for decentralised power plants, energy intensive industries in remote areas & local gas grids

• LNG has huge potential as fuel for ships

• Decentralised Smart Power Generation

• Flexible gas power plants on islands supporting renewable energy

• Gas and dual-fuel ships

• Need for new small size LNG carriers

• Building the infrastructure is key

Regional gas availability enables

13 © Wärtsilä 10 June 2015 Tord Johnsson

LNG infrastructure and synergies within Wärtsilä

Liquefaction Technology – Value Proposition

Advantage of New MR technology

o Low power consumptiono All components are conventional and robust technologyo Designed for unmanned operationo Local control of LNG export, truck driver handles

loadingo Robust main rotating machinery with high efficiency –

oil flooded screw compressoro Simple energy supply, only electrical power neededo Easy and quick start up and shut down of all systemso Standard capacities: 10, 17 and 25 tons/dayo Short delivery timeo Easy shipmento Plug and play philosophy, skid based – relocation

possibleo Broad range of applications, biogas, pipeline gas, CBM

and associated gas

Advantages of Reverse Brayton Cycle technology

o Low power consumptiono Robust, reliable and simple to operate technologyo Designed for unmanned operationo Capasity control is very easy and quicko Easy start-up and shutdown of all systemso Local control of LNG export, truck driver handles

loadingo Simple energy supply, only electrical power

neededo Refrigerant will be produced directly from air on

site – No logistics connected to the regrigeranto There is no required handling of chemicalso Our design provides a ZERO FLARE solution.

During normal operations, hydrocarbon losses will be zero.

22 April 2014

1. Natural gas pre-treatment2. Cold box → LNG production3. LNG storage tanks4. Filling station for LNG tank trucks5. Nitrogen compounder6. Power generation7. Nitrogen production

1

2

3

47

5 6

Small Scale LNG Liquefaction Plant Snurrevarden, Norway, 2003–22000 TPA

OMC RAVENNA 25.03.2015 - M.Golinelli 30

Medium Scale LNG Liquefaction Plant Kollsnes II, Norway, 2007–84000 TPA

The liquefaction plant includes two truck filling stations + existing loading jetty for small LNG carriers


(LNG storage tank of 4000 m3)

Gas Solutions – LNG regasification

Jetty Regasification Unit for Petronas’ LNG terminal Melaka, Malaysia – March 2012

• Seawater-propane: 3 x 221 tons/h trains (3x50%)• Send-out pressure and capacity: 70 bar / 442 tons/h (500 MMscf/d)• Single-lift module: 32x20x13 m, 945 t dry weight • BOG recondenser capacity: 24 tons/h per train

Regasification systems for FSRUs and jetty installations

Order book: Deliveries to 4 Floating Storage Regasification Units (FSRU) at HHI for Höegh LNG


Gas Solutions – LNG regasification

Regasification systems for both FSRUs and jetty installations

Høegh LNG regasification module – delivered 2 April 2013 at SOE in China

Regas Module 620 tons Seawaterfilters / Steam heaters 115 tons


LNG C ”Al Bahiya”

Q-flex built as DSMEOperated by STASCOEquipped with Hamworthy’s

Mark III LNG Reliquefaction system

FSRU ”Golar Freeze”

Owned by Golar LNG EnergyOperating as Floating, Storage, Regasification Unit in DubaiEquipped with Hamworthy’s

Regassification equipment

LNG reliquefaction and regasification

Cooling down (re-liquefy) Warming up (regasify)


Boil-off gas reliquefaction systems to LNG C’s

35 reliquefaction units contractedwith Hamworthy ……

4 last in comb. with DFDE propulsion

20 first contracts : Mark I system11 last contracts : Mark III (-20% power consumption)

Boil Off Gas reliquefaction systems


4 LNG C with reliq system in comb. with DFDE propulsion built by SHI for BG Shipping. Last vessel delivered Nov 2010.

Boil Off Gas reliquefaction systems


Selected Gas references

Sasolburg, 175 MW, South Africa, in operation since 2012

7850 MW, in 44 countries,

275 power plants

Plains End Power Plant I & II 231 MW, Colorado,USIn operation since 2002 & 2008

Antelope station 170 MW , Texas, USIn operation since 2011

Seaboard New Barge 106.3 MW, Santo Domingo, In operation since 2011

Sangachal, 307.8 MW, Azerbaijan In operation since 2006

Linate 27 MW , Italy in operation since 2008


The industry's most environmentallysound and energy efficient large passenger vessel to date.

Main particulars:Overall length: 214.0 mBreadth, moulded: 31.8 mCruising speed 22 knotsPassengers: 2800Class: LRIce class: 1AIn service: 2013Shipyard: STX Finland OyShip Owner: Viking Line

Viking Line 2800 Pax Cruise Ferry

OMC RAVENNA 25.03.2015 - M.Golinelli

Wärtsilä Dual-Fuel application references

21 September 2015 DF reference

LNG CarrierMultigas CarrierProduct tankerBulk tankerCNG carrier

Offshore supplyFPSOFSRUPlatformFSO

FerriesTugsROPAXNavyIcebreakerIWWGuide ship

168 vessels8 vessels2 vessels1 vessel1 vessel

FPSOROROChemical tankerFerriesIWW

Chemical tankerContainer vesselLNG Carrier

4 vessels4 vessels3 vessels

Plants 75Output 4877 MW Online since 1997

24 vessels5 vessels4 vessels2 vessels1 vessel

9 vessels6 vessels3 vessels1 vessel1 vessel1 vessel1 vessel

4 vessels2 vessels1 vessel1 vessel1 vessel

732 engines

123 engines

61 engines

28 engines

11 engines

352 engines

Clear leadership in dual-fuel applications

More than 1300 engines More than 300 installations

More than 12,000,000 running hours

Power Plants Merchant Offshore Cruise & Ferry Navy Others


Gas Solutions – LNG

Small Scale LNG production

Feed gasLNG

productionStorage

Transportation & distribution

Endusers

Biogas

CBM

Flare gas

Pipeline / well head gas

SSL

MiniLNG


Manga, Tornio, Finland - Main data

• Client: Manga LNG Oy

• Region / Country: Tornio, Finland

• Scope: EPC

• Estimated start up: Early 2018

• Tank net volume: 50 000m3

• Ship unloading rate: 3 000m3/h

• Outlet gas pressure: 6.0 barg

• LNG in-tank pumps: 3 x 175m3/h

• End user: Outokumpu Tornio steel mill, mines, factories and other industrial customers in Northern Finland and Sweden

20 © Wärtsilä 10 June 2015 Tord Johnsson

Documents

GREEN SHIPPING SUMMIT 20152015.gsweek.it/wp-content/uploads/Marco-Golinelli.pdf · •Single-lift module: 32x20x13 m, 945 t dry weight •BOG recondenser capacity: 24 tons/h per train