December 2013 - Issue 4

Nikos K. Doukas Publicatios12, Karababa str., Agios Dimitrios 173 43 - Athens - Greece 210 4286606 - nafsgreen@nafsgreen.gr - www.nafsgreen.gr

MONTHLY FREE REPORT FOR THE LNG, OIL & GAS INDUSTRY

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NAFSGREEN.GR

New DNV GL JIP to deal with risks in

sour gas fields

SPYROS ZOLOTAS

Lng as fuelfor ships

Why Energy Efficiency Is

Imperative for Sustainable

Growth

TAP and Interconnector

Greece-Bulgaria

Terntank Rederi a/s orders the world’s most

environmentally friendly tankers |

A revolution in natural gas productionThe Prelude FLNG facility

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Hundreds of engineers from across the world have combined their expe-rience and expertise to design the world’s largest floating offshore facility. It will be used to help open up new natural gas fields at sea that are cur-rently considered too costly or difficult to develop.

Shell is a pioneer in liquefied natural gas (LNG). Chilling gas to -162° Celsius (-260°F) turns it into liquid and shrinks its volume by 600 times, allowing it to be shipped to far-off towns and cities where the energy is needed. We have five decades of experience in the LNG industry. Moving the production and processing out to sea where the gas is found is a major innovation that brings huge new energy resources within reach.

It also avoids the potential environmental impact of constructing and operating a plant on land, including laying pipelines to shore and build-ing other infrastructure.

The first site to use Shell’s FLNG will be the Prelude gas field, 200 kilome-tres (around 125 miles) off Australia’s north-west coast.

Shell has progressed the Prelude FLNG project at rapid pace.

“This is revolutionary technology developed by Shell,” says Neil Gilmour, Shell Vice President Integrated Gas Development. “It has the potential to change the way we produce natural gas.”

The Prelude FLNG facility will produce at least 5.3 million tonnes per annum (mtpa) of liquids: 3.6 mtpa of LNG – enough to easily satisfy Hong Kong’s annual natural gas needs – 0.4 mtpa of liquefied petroleum gas

and 1.3mtpa of condensate (equivalent to 35,000 bbl/d).

Huge and compactOnce complete, the facility will have decks measuring 488 by 74 metres, the length of more than four soccer fields. With its cargo tanks full it will weigh roughly six times as much as the largest aircraft carrier.

More than 600 people around the world spent over 1.6 million hours working on different design options for the facility.

“This has never been done before,” says Neil. “We had to find ways to adapt our technology for off shore.” Despite its impressive proportions, the facil-ity is one-quarter the size of an equivalent plant on land. Engineers have designed components that will stack vertically to save space.

The operating plant, for example, will be placed above LNG storage tanks.

They also came up with the idea of tapping the cold of the ocean depths by pumping water to help cool the gas, avoiding the need to for extra equipment on deck. “For LNG you need a cooling medium, like in your fridge at home,” says Neil. “We’ve invented a system to take water from deep in the ocean.” An assembly of eight one-metre diameter pipes will extend from the facility to about 150 m below the ocean’s surface.

It will deliver around 50,000 m3 of cold seawater each hour. This helps to cool the gas from below the facility, saving deck space.

A revolution in natural gas productionThe Prelude FLNG facility

Shell is building the world’s first floating lique-fied natural gas (FLNG) project which has the potential to revolutionise the way natural gas resources are devel-oped. It will help to unlock vital energy resources off-shore, without the need to lay pipelines and build processing plants on land.

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The Prelude FLNG facility

Staying firmThe FLNG facility is designed to operate and stay safely moored even in the most extreme weather conditions. The sheer size of the full-scale facil-ity will help it to withstand very high winds and giant waves. In addition, it will be secured in place by one of the largest mooring systems in the world. A 93-metre (305-foot) high turret, spacious enough to house the Arc de Triomphe, will run through the facility. Four groups of mooring lines will anchor it to the seabed.

The system allows the facility to turn slowly in the wind – absorbing the impact of strong weather conditions – while remaining moored over the gas field. It can stay safely moored at sea even during the most powerful cyclones. This saves valuable production days that would otherwise be lost on disconnecting the facility and moving it off the field.

Three 6,700-horsepower thrusters will sit in the rear of the facility. Two of these will operate at any one time to turn the facility out of the wind and allow LNG carriers to pull safely alongside to load. The facility’s storage tanks will be below deck. They can store up to 220,000 m3 of LNG, 90,000 m3 of LPG, and 126,000 m3 of condensate. The total storage capacity is equivalent to around 175 Olympic swimming pools.

Prelude FLNG in numbers>600 engineers worked on the facility’s design options

>200 km (125 miles) is the distance from the Prelude field to the nearest land 4 soccer fields, laid end to end, would be shorter than the facility’s deck

175 Olympic-sized swimming pools could hold the same amount of liq-uid as the facility’s storage tanks

6,700 horsepower thrusters will be used to position the facility

50 million litres of cold water will be drawn from the ocean every hour to help cool the natural gas

6 of the largest aircraft carriers would displace the same amount of water as the facility

93 metres (105 feet) is the height of the turret that runs through the facil-ity, secured to the seabed by mooring lines

-162° Celsius (-260°F) is the temperature at which natural gas turns into LNG

1/600 is the factor by which a volume of natural gas shrinks when it is turned into LNG

117% of Hong Kong’s annual natural gas demand could be met by the facility’s annual LNG production

20-25 years is the time the Prelude FLNG facility will stay at the location

to develop gas fields

TechnologyThe floating facility will chill natural gas produced at the field to –162°C (-260°F), shrinking its volume by 600 times so it can be shipped to cus-tomers in other parts of the world. Ocean-going carriers will load the LNG as well as other liquid by-products (condensate and LPG) for delivery to market. The Prelude FLNG facility will be 488m (1,600-feet) long, 74m (240-feet) wide and will displace around 600,000 tonnes of water.

It will be the largest floating offshore facility in the world. The Prelude FLNG facility is being built at Samsung Heavy Industries’ Geoje Island ship yards in South Korea. The Samsung ship yard is one of the few yards in the world big enough to construct a facility of this size.

Once constructed, the facility will be towed to its location, approximately 475 kilometres (around 300 miles) north-northeast of Broome, Western Australia.

The facility will be moored and hooked up to the undersea infrastructure and the whole production system commissioned.

The Prelude FLNG facility has been designed to withstand the most pow-erful tropical cyclones. It will remain permanently moored at the location for around 20-25 years before needing to dock for inspection and over-haul. The LNG, LPG and condensate produced will be stored in tanks in the hull of the facility.

LNG and LPG carriers will moor alongside to offload the products.

MarketsThe Prelude FLNG Project is well placed to help meet the growing natural gas demand of Asia.

Environment & societyThe project will create around 350 direct and 650 indirect jobs. Recruitment of staff to operate the facility will ramp up during 2013 and 2014. Prelude will also provide taxes and revenue to Australia, create opportunities for local businesses and result in Shell spending billions in capital and oper-ating expenditure. The Australian Government gave the Prelude FLNG Project environmental approval on November 12, 2010.

The Prelude FLNG Project will use significantly less materials, land and seabed area than developing the same gas via a similar onshore facility.

Developing the gas at the location of the gas field will reduce impact on sensitive coastal habitats as FLNG avoids the need for shoreline pipe crossings, dredging and jetty works. Product carriers will be far from coastal reefs or whale migration routes.

From stern to bow the FLNG measures 488m: its length is comparable to the height of iconic structures around the world.

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Abu Dhabi: In the operation and development of a sour gas field, a key chal-lenge is ensuring the process safety and integrity of the asset and, most importantly, the safety of the personnel working with high concentrations of hydrogen sulphide (H2S). To help the industry manage the risks throughout the project’s lifecycle, DNV GL has now initiated a Joint Industry Project (JIP). Operators are invited to join this JIP to obtain synergies through the develop-ment of guidelines on design, construction, operations and training. Several sour gas fields are under development or in operation in different parts of the world. The focus is now on the Middle East, as this region looks likely to meet its soaring domestic energy demand through its large reserves. However, sour gas is toxic, highly corrosive and explosive, so both the development and operation of these fields are associated with a high risk level relating to Health, Safety and the Environment (HSE), process safety and integrity.

“Facing these risks, and given the inadequate existing standards and best practices for handling high H2S concentrations, DNV GL has now initiated a JIP to develop international standards and guidelines specific to sour gas fields,” says Koheila Molazemi, DNV GL’s Risk Management and Advisory Service Line Manager in the UAE.

As a driver for this JIP, DNV GL analysed all the available standards, procedures and current practices. Gaps were identified and revealed that the available standards were not adequate to effectively manage the H2S hazards.

“More specifically, key gaps in H2S management were identified in the exploration phase, plant, equipment design and in the construction, commissioning, operations and de-commissioning stages, as well as in by-product management. Through the JIP, we aim to use the key findings to develop specific guidelines for both developing and operating sour gas fields. The main focus will be on process safety in the design and operations, including in the people system,” con-firms Molazemi. The JIP will run for six months and include valuable contributions from major international and national oil companies working with sour gas. In addition, DNV GL, the initiator and manager of the project, will contribute its own expertise. The conclusions will be presented in a set of guidelines available to the industry.

Offshore Drilling Fleet Takes Delivery of Five More Drillships|Driven by deepwater activity and demand for high-specification assets, the number of active drillships in the offshore drilling fleet has more than doubled over the past decade, from 37 operating units in 2003 to 87 units in 2013. ABS continues to hold the largest market share in this sector with 52 of 77 units under class in the current drillship order-book. So far in 2013, the rig fleet has taken deliv-ery of five newbuild drill-ships, including the ABS-classed Seadrill West Auriga and West Vela, the Vantage Drilling Tungsten Explorer and the Noble Drilling Noble Globetrotter 2.According to analysts at Infield Systems, the cur-rent market represents a distinct peak in new-building activity to pro-vide tonnage for remote drilling campaigns in deeper water. Further growth is expected over the next few years, with greater focus on devel-oping next-generation compact drillship designs and consideration toward building a polar-class fleet for operations in Arctic and harsh envi-ronments.Drillships account for a significant portion of offshore assets on order, and additional orders are expected this year. Another 18 units are scheduled for delivery by year-end 2013, 18 are expected to be delivered in 2014 and around the same number of units are on the horizon for 2015.

New DNV GL JIP to deal with risks in sour gas fields

The €4million project (approx. £3.4 million) is a pioneer-ing collaboration by Lloyd’s Register Energy, Senergy, the Danish Technical University and Welltec.

It is being funded by the Danish National Advanced Technology Foundation and will focus on optimising oil production from horizontal wells.

Entitled Project OPTION, the initiative aims to align existing reservoir simulation models with high-performance inflow and wellbore flow simulators. Lloyd’s Register Consulting and Senergy will provide improved reservoir modelling techniques, which will be critical to the development of the next generation of industry software technologies. The increased understanding of the interface between reservoir and well performance will improve well and completion design to enhance productivity and oil recovery.

If successful, even a 1% increase in oil recovery from Danish fields would represent an estimated value of DKK 60 billion (approx. €8 billion / £6.8 billion) to the Danish economy.

Claus Myllerup, Senior Vice President Technology at Lloyd’s Register Energy said: “We are delighted to have been awarded funding from the Danish National Advanced Technology Foundation as the research and techniques

within this project will become central for the ability to improve predictions of reservoir recovery rates. Project OPTION will be central to our ability to improve the predic-tion of the recovery factor and thereby assist our clients to assess measures that must be implemented to optimise recovery. The project will clearly strengthen the expansion of our Danish business in the global market.”

Dr Iain Morrison, VP Technical at Senergy said: “We are excited by this award and the potential which the collabo-ration will offer to improving decision-making and enhanc-ing recovery factors. Senergy will bring its industry-leading Production Optimisation expertise to bear in modelling the interface between reservoir and wellbore, where current commercial reservoir simulators are known to have signifi-cant shortcomings. Senergy’s innovative CFD (computa-tional fluid dynamics) well and near-wellbore modelling process, Wellscope™ is integral to the OPTION project.”

The project marks one of the first significant collaborations between Lloyd’s Register Energy and Senergy, since Lloyd’s Register’s investment in the energy services company in September 2013.

Lloyd’s Register Energy and Senergy part of €4 million industry collaboration project

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Statoil: Resuming production at Hammerfest LNG | Production from the Hammerfest LNG plant has been resumed after a gas leak Sunday night. “We started run-up of the Hammerfest LNG plant Tuesday night, and the plant has now reached stable operation. All necessary repairs on the plant have been completed to ensure a safe and efficient start-up,” says Knut Gjertsen, head of Snøhvit operations.

The Hammerfest LNG plant was shut down Sunday night due to a gas leak in the processing facility.

In connection with the plant run-up a condensate leak occurred which required extra time for the start-up preparations.

The incident will be investigated by Statoil.

STX Heavy Won $ 449 Mil. Pipeline Construction Order from Iraq | STX Heavy Industries announced on January 6 that it won an order to build 550-km long pipelines at the Akkas Gas Field in Iraq. The order, worth $449 million, was commissioned by Kogas Akkas B.V., a project unit of Korea Gas Corp. which is engaged in the gas field business there. STX Heavy Industries will carry out this project on a turnkey basis ranging from engineering to procurement of materials and construction. The project is slated to be completed by June 2017.

The Akkas Gas Field is located in the western desert of Anbar in Iraq border with Syria. The gas reserve there is estimated at 590 million barrels. Prior to this order, STX Heavy Industries won a $ 39.3 million worth desulfurization plant order from Iraq Khabat region.

Seabulk TankersSeabulk Tankers, Inc., a wholly owned subsidiary of SEACOR Holdings Inc. (NYSE: CKH), entered into a contract with General Dynamics NASSCO, a wholly owned sub-sidiary of General Dynamics (NYSE: GD), for the design and construction of one 50,000 deadweight ton LNG-conversion-ready product carrier with a 330,000 barrel cargo capacity, plus an option for one additional ves-sel. Delivery is expected in the fourth quarter of 2016.This order brings the total of on order vessels for Seabulk Tankers, Inc. at NASSCO to three (3) with an option for a fourth vessel.

Chart Industries Receives Contract to Expand Nationwide Liquefied Natural Gas (LNG) Fueling NetworkChart Industries, Inc. (Nasdaq:GTLS), a leading independent global manufacturer of highly engineered equipment used in the pro-duction, storage and end-use of hydrocarbon and industrial gases, announced today that it has been awarded a contract in the third quarter by a major oil company to build and commission 20 retail liquefied natural gas (LNG) fueling stations across North America.

The 20 LNG fueling stations will be built at existing truck stop sites with the intention of adding dispensers alongside existing diesel fueling lanes. The order has been reflected in third quarter 2013 ending backlog with completion expected by the second quarter of 2015.

“After developing core technologies for vehicle fueling 20 years ago, it’s gratifying to see acceleration in fueling station deploy-ment,” said Bill Haukoos, Chart D&S Vice President, Global LNG Products. “We look forward to working closely with our customers at the forefront of development in the LNG market — a critical step in enhancing both nationwide infrastructure and availability of LNG.”

Chart is an integrated supplier and worldwide leader in LNG equipment for the transportation and energy industries.

Yokogawa Wins Control System Order for Yamal LNG Project in RussiaYokogawa Electric Corporation is pleased to announce that its subsidiary Yokogawa Europe Solutions B.V. has been awarded a contract by Yamgaz, a consortium of Technip and JGC Corporation, to supply integrated control and safety systems (ICSS) for the Yamal LNG Project to build a liquefied natural gas plant and other facili-ties at Sabetta on Russia’s Yamal Peninsula, which is in northwest Siberia, above the Arctic Circle, in the Yamal-Nenets Autonomous District. The Yamal LNG Project is one of Russia’s largest resource projects and is being undertaken by JSC Yamal LNG, which is jointly owned by Novatek (80%), Russia’s largest independent oil and gas company, and Total (20%), a major French energy company. As part of this project, a major integrated complex for the liquefaction of natural gas will be built that will have a design production capacity of 16.5 million tons per annum. The three process trains that will make up this complex will have an annual production output of 5.5 million tons each, and are planned to be commissioned in 2016, 2017, and 2018, respectively. For this project, Yokogawa will supply CENTUM® VP integrated production control systems, ProSafe®-RS safety instrumented systems, Exaquantum™ plant informa-tion management systems, PRM® integrated device management packages for the monitoring and diagnosis of plant equipment, analytical systems, analyzer shelters, and operator training systems. Yokogawa will be responsible for delivery, engineering, installation, commissioning, and operator training. It is estimated that this will be Yokogawa’s largest order ever for a natural gas project in Russia.

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CNOOC Limited to examine LNG development in British Columbia, Canada through NexenCNOOC Limited (the “Company”, NYSE: CEO, SEHK: 00883, TSX: CNU) announced that its wholly-owned subsidiary Nexen Energy ULC (Nexen), has entered into an exclusive agreement with the Government of British Columbia, Canada to examine the viability of constructing a liquefied natural gas (LNG) plant and export ter-minal at Grassy Point near Prince Rupert, British Columbia, Canada. The agreement with the Government of British Columbia, rep-resented by the Ministry of Forests, Lands and Natural Resource Operations, grants Nexen and its joint venture partners INPEX Corporation and JGC Corporation, the exclusive right to pursue long-term access to Crown land at Grassy Point.

“LNG export is the most attractive option for maximizing the value of our Canadian shale gas business,” said Li Fanrong, CEO of CNOOC Limited. “With robust financial capacity, a track record of efficient, innovative and responsible development and significant

LNG expertise, Nexen and our joint venture partners are well posi-tioned to pursue this opportunity.”

In addition to assessing the suitability of the Grassy Point site, the decision to proceed with LNG development is subject to a vari-ety of internal and external approvals. Financial attractiveness is dependent on acceptable cost estimates, fiscal terms and obtain-ing acceptably-priced sales agreements.

“We have a long process ahead that includes a site viability review, a comprehensive environmental impact assessment and stakeholder consultation,” said Kevin Reinhart, CEO of Nexen. “Throughout the planning process, we’ll also examine the steps we can take to help the Province of British Columbia realize its goal of creating a strong and competitive LNG industry that creates jobs, strengthens pan-Pacific trading relationships and delivers lasting social and economic benefits.”

PETRONAS Awards the Pan Malaysia Integrated Offshore Installation Contract For Year 2014 - 2016Petroliam Nasional Berhad (PETRONAS) has recently awarded the Pan Malaysia Integrated Offshore Installation Contract cover-ing domestic upstream oil & gas offshore Transportation and Installation (T&I) activities for a period of three years commenc-ing Year 2014. The contract, which was a competitive tender open to both local and international companies, involves the transportation and installation for offshore facilities and includes

all the necessary services required for the execution of the scopes such as marine spread services, required tools, specialized equip-ment and manpower services. The total work value under this contract is estimated to be almost RM 10 billion, spread over four packages, and was awarded to three capable local offshore installation contractors (OICs) namely TL Offshore Sdn Bhd, PBJV Sdn Bhd and GOM Resources Sdn Bhd. Encik Ramlan Abdul Malek, Vice President of Petroleum Management of PETRONAS in his statement shared the driving strategy for this contract that offers a different approach to ensure maximum local participation mean-while maintaining high competitiveness and upholding interna-tional standards.Two out of the four packages were exclusively open to local barge owners only.

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Leviathan Partners Signs Agreement with Palestine Power Generation Company for the Supply of Natural Gas

Block 6 is located offshore north-east Greenland in a frontier area. Statoil will hold 52.5%, ConocoPhillips will have 35% and Nunaoil will have 12.5%.

“We have been present in Greenland since the late 1980s and are constantly building experience and knowledge. We are taking a stepwise approach to the Arctic, building on more than 30 years of experience from the harsh environment of the Norwegian continental shelf and other Arctic and sub-Arctic regions. Adding this licence to our portfolio is part of our long-term Arctic posi-tioning and development of new technology is a pre-requisite for any future operations in this licence,” says Runi M. Hansen, Statoil country manager for Greenland and the Faroes.

The licence has a 16-year exploration period. The first work carried out is seismic acquisition, after which decisions on further work will be made. Statoil has carried out both shallow core drilling and scientific work in the area previously to understand the operating

environment.

“We recognise that this is a challenging area, but it is also poten-tially prospective. And we believe that Arctic resources in the future will become important to meeting the world’s energy demand. Being in a frontier area, this licence is a long-term project for Statoil and the company will follow its stepwise approach, not going faster than technology allows,” says Hansen.

This is not the first time Statoil has carried out activities in Greenland. In the 1990s, Statoil drilled an exploration well in the Fylla area west of Greenland – but the company relinquished this exploration license in 2002. Statoil is also partner in three licences - Anu, Napu and Pitu - in the Baffin Bay west of Greenland.

Statoil already holds offshore positions in Arctic conditions in Norway, Russia, the US and Canada.

Further to that stated in Section 1.11.29(F) of the Company’s Annual Report dated March 24, 2013, as amended on July 4, 2013 (Ref. No. 2013-01-083805), below is included the immediate report as published by the subsidiary partnerships yesterday, Delek Drilling Limited Partnership and Avner Oil Exploration - Limited Partnership (together “the Partnerships”) with regard to the sign-ing a natural gas supply agreement between the Partnerships and the other partners in licenses 349/Rachel and 350/Amit (the “Sellers”), with the Palestine Power Generation Company PLC (the “Purchaser” or “PPGC”). According to the agreement, the Purchaser will acquire natural gas from the Sellers for power plant operating needs that the Purchaser intends to build near Jenin in the north-ern West Bank.

“Further to that stated in the Partnerships shelf prospectus dated May 31, 2013, as amended on August 5, 2013, hereby a notice is issued that on January 5, 2014 a natural gas supply agreement was signed between the Partnerships and the other partners in licenses 349/Rachel and 350/Amit with the PPGC. According to the agreement, the Purchaser will acquire natural gas from the Sellers for power plant operational needs that the Purchaser intends to build near Jenin in the northern West Bank (the “Supply Agreement”).

Under the Supply Agreement, the Sellers committed to supply natural gas to PPGC in the total scope of 4.75 BCM (the “overall contractual amount”).

The period of the Supply Agreement will start from the beginning of the flow of gas from the Leviathan Project and shall end after 20 years, or at the date that PPGC shall have purchased the overall contractual amount, whichever is the earlier (“Supply Period”). The PPGC is entitled to reduce the quantities to be purchased in accordance with a mechanism defined in the Supply Agreement.

PPGC undertook to take or pay a minimum annual quantity of gas to the extent and in accordance with the mechanism set forth in the Agreement.

The price of gas determined in Supply Agreement will be linked to Brent Crude prices, and includes “a floor price”.

The Sellers estimate that the aggregate level of revenues from the sale of natural gas to PPGC (at a ratio of 100% of the rights in the Leviathan Project) during the Supply Period (and based on an evaluation by the Leviathan partners regarding the price and quantity of natural gas which will be purchased during the Supply Period), is likely to aggregate to approximately US$ 1.2 billion.

If the overall contractual amount is reduced as mentioned above, the revenue scope is likely to aggregate to approximately US$ 1 billion.

It should be clarified that the actual revenues that will be derived depends on various factors, including the quantities of gas actu-ally purchased by PPGC and the Brent Crude prices at the time of sale.

The Supply Agreement includes several contingent conditions, of which the main ones are the development approval of Leviathan Project by the Sellers, obtaining all regulatory and other approv-als required by law for the development of the project and gas exported from it, the financing development closure of the Sellers’ project and the financial closure of the Purchaser in financing the construction of the power plant.

In the Partnerships’ best knowledge, PPGC is a special purpose company dedicated to be developed, construction and operation of power plants in the area of the Palestine Authority, which is registered and operating under the laws of the Palestine Authority.

Statoil awarded Greenland licenceStatoil, along with partners ConocoPhillips and Nunaoil, has been awarded block 6 in the East Greenland licence round. Statoil will be operator of the block.

LNG as fuel for shipsBy Spyros Zolotas RINA Area Manager Greece & Cyprus

Featured article

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The environmental requirements that impose new regulations entering into force and the high cost of fuel oil are making Gas today more and more an attractive alternative. There is no doubt that gas-fuelled ships are one way forward to reduce air emissions. But gas-fuel opens up a number of safety questions and it is important to put in place the pragmatic steps needed to ensure that lower emissions don’t mean less safety. Although Gas-fuelled ships are not a new technology, they bring a new mix to technology to people not familiar with the safety culture needed to manage LNG as a fuel. There is nothing new in having liquefied gas on ships, and nothing new in engines which burn gas. Gas carriers have both and gas carriers have one of the very best safety records of all ship types. But we need to take great care when we extend gas power to other ship types. Substantial changes are needed to the structure and outfit of the vessel, and the crew need to be trained to understand the new fuel and its risks. Carrying and using gas at sea requires a culture which is present on gas carriers, but which is not found on most other ship types.

There are many advantages in the use of gas as a fuel in terms of reducing air emissions. The use of natural gas as a fuel provides a twenty per cent reduction in carbon dioxide emissions and com-petitive prices at current costs and estimates for the near future, along with the advantages of a total reduction in sulphur oxide emissions and a considerable reduction in nitric oxide emissions. But there is nothing free in this world. Moving to gas as a fuel has a cost in terms of new outfit, new design, operational flexibility and crew training. All of these issues will be covered in a new IMO Code for Gas Fuelled Ships, but that is not going to be ready before 2014. We are working with owners and yards which need to know how to tackle gas fuel issues safely now, so we have brought out a new notation and amended our Rules to provide

guidance on the requirements.

RINA has published a notation GAS FUELLED SHIPS which estab-lishes requirements for the use of liquefied or compressed natural gas (LNG or CNG) on board ship as an alternative to traditional fuels. It is designed to give the industry a regulatory tool to ensure that the arrangement and installation on board of machinery using this type of fuel are such as to provide a level of integrity, from the point of view of safety and reliability, equivalent to that of a conventional installation.

From the financial point of view, regarding the investment of a shipowner/manager to order a ship built with LNG as fuel, or ret-rofit an existing ship, the foreseen employment of such a vessel in ECA areas is an important factor to be considered.

It is obvious that the price of MDO and HFO with respect to the price of LNG, which is also not uniform all around the world, may have a significant impact on the final result and on the analysis of bunker costs depending on the area of operation of the vessel.

All the technical issues can be solved by good engineering and risk assessment techniques. But there is an equally important area where we as class have less remit, and that is the crew culture and expertise. RINA’s notation does not address crew training, but how to keep things safe and efficient from the structural and outfit perspective.

These issues are linked, because the crews of passenger ships and cargo ships are not used to handling gas, and not used to LNG ship-to-ship transfers, and both of these will become common once gas is in greater use. It is expected that LNG bunkering is done from small LNG tankers, which will mean lots of LNG ship-to-ship transfers. Crews need training and a different attitude to safety for that. RINA has a lot of experience with Gas and is very keen on the environmental benefits it can offer for shore plants, but also as potential fuel for ships. The role of class is to enable the benefits of Gas to be realised in a safe and practical manner.

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sign Memorandum of Understanding on technical cooperation

TAP and Interconnector Greece-BulgariaThe Trans Adriatic Pipeline AG (TAP) and Interconnector Greece-Bulgaria (ICGB) – the company in charge of the development, financing and construction the Interconnector Greece-Bulgaria (IGB) – have signed a Memorandum of Understanding and Cooperation (MOUC) aimed at establishing the technical coopera-tion in order to further develop strategic infrastructure in the region. The MOUC will allow for cooperation between the two companies who will work together on realising a possible interconnection point in the vicin-ity of Komotini, Greece. This will enable new gas sup-plies to flow into the Bulgarian gas network and further into the South Eastern Europe region. Lutz Landwehr, Commercial Director of TAP, said: “We welcome this agreement with ICGB and see it as an opportunity to transport Caspian gas to Bulgaria, thus enhancing diversification of supply and improv-ing security of supply in the country and in the wider South Eastern Europe Region”.Following the signature of the MOUC, TAP and ICGB will start a cooperation focused on understanding the tech-nical requirements of each project, exchanging views on best practices and on any other relevant issues that affect the development of either project.

The IGB (Interconnector Greece-Bulgaria) pipeline project, which has been undertaken by “ICGB” AD, a joint venture by IGI Poseidon S.A. and Bulgarian Energy Holding, will link the Northern Greek natural gas network in Komotini with Bulgarian gas ring in Stara Zagora through a 170km pipeline. IGB being in full compliance with EU’s top priorities, has secured 45 million euros in Community funds through the E.E.P.R. framework (European Energy Programme for Recovery), IGB is expect-ed to meet the increasing energy needs of Southeastern European markets and provide diversification of natural gas supply to the region thusly increasing its energy security. IGB will have a transport capacity of 3 to 5 billion cubic meters per year. The Interconnector Greece - Bulgaria is the additional branch of ITGI pipeline to the Balkans. The project enjoys the full support of two countries, which have signed an intergovernmental agreement for the realization of the pipeline. The Interconnector Greece-Bulgaria highlights the important role of Greece in the energy scene in Southeastern Europe.

With a total length of about 180 km starting at Komotini, the pipeline will end in Stara Zagora in Bulgaria, linking the Greek natural gas system with the Bulgarian system. The capacity of the pipeline at full develop-ment will be of approximately 5 billion cubic meters of natural gas.

The company “ICGB AD - Interconnector Greece - Bulgaria” was incor-porated in January 2011, with its mission being to design, construct and operate the pipeline. IGI Poseidon S.A. and Bulgarian Energy Holding EAD each hold 50% stake in the company. The EU, by recog-nizing the strategic importance of the Greek-Bulgarian Interconnector as a project of European interest, included it among the projects of the Southern Corridor-financed from the resources of the European Energy Programme for Recovery (E.E.P.R.), granting funds of the amount of 45 million euros.

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I would like to take this opportunity to wish all MOL Group mem-bers a Happy New Year.2014 is the Year of the Horse in the Japanese zodiac. Just as Pegasus soars into the sky, I want to make 2014 a year in which the MOL Group sails across the rough waters of the seven seas to attain new growth.

In April 2014, MOL will celebrate its 130th founding anniversary. This occasion will also mark 50 years since the merger of the Company’s predecessors, Osaka Shosen Kaisha (OSK Lines) and Mitsui Steamship, and 15 years since the formation of the new MOL through a merger of Mitsui O.S.K. Lines and Navix Line. At the start of this momentous year, while carrying on MOL’s history and traditions, I would like to tackle the challenges of the new year with a fresh mindset in an effort to continue evolving as the MOL Group in the new age.

Looking back at 2013, Japan’s economy finally started to offer a glimpse of hope for pulling out of the deflation from which it has suffered for many years. This can be attributed to the economic policies of Prime Minister Abe’s government, or the so-called the “three arrows” of Abenomics. Last year, MOL put itself back on track to restore profitability by releasing two arrows of its own: Business Structure Reforms (BSR) and cost reductions at an entirely different stage than before. This year, MOL’s growth strat-egy-the third arrow, so to speak-will be put to the test. Today I will talk mainly about MOL’s business environment and key points to keep in mind as we strive to put MOL on a new growth trajectory.

Business EnvironmentIn 2013, while some emerging economies showed signs of a slower pace of growth, the global economy recovered on the whole, centered on developed countries, and we saw steady growth in seaborne trade volume. As the supply of new vessels declined, the supply-demand gap for vessels gradually started to improve. However, given that excess shipbuilding capacity remains, even if freight rates rise in the next few years, the increase could be subdued. Moreover, last year large numbers of vessels were again ordered by speculative investors. Furthermore, we will need to keep a close eye on risk factors. Possible examples include seaborne trade volume to China peaking out in the future, and a reduction in ton-miles driven by the shift to local production, local consumption, as exemplified by completed vehicles.Furthermore, MOL is facing major upheaval in the business environ-ment, including shorter contract periods, the shift of customers to Asia, and the entry of new players. Other developments include

burgeoning growth in market-linked contracts and changing trade patterns. One of the MOL Group Corporate Principles is as follows: “As a multi-modal transport group, we will actively seize opportuni-ties that contribute to global economic growth and development by meeting and responding to our customers’ needs and to this new era.” In response to changes in customer needs, we are required to drive the MOL Group’s sustained growth by steadily addressing demand for marine transport while pooling the Group’s wisdom and taking creative initiatives. I want you to take on new challenges positively by seeing the changes in the business environment as opportunities.

Restoring TrustIn September 2012, the Japan Fair Trade Commission conducted an on-site inspection of MOL based on cartel-related allegations in connection with car carriers. MOL has fully cooperated with the authorities’ investigation. We are conducting a full follow-up investi-gation of our business conduct with the aim of ensuring even more transparent management and business operations. Legal compli-ance is an absolute precondition for corporate business activities. Therefore, we will continue to bolster global compliance going forward. Furthermore, in June 2013, an MOL-operated container-ship suffered a major marine accident, which has greatly inconve-nienced many of our customers. An MOL-operated LNG carrier and a dry bulker were also involved in marine accidents. Sweeping safe-operation initiatives to eradicate such major marine accidents are an urgent priority. Meanwhile, MOL’s financial position dete-riorated unavoidably in the course of executing BSR from January to March last year. Strengthening our financial trustworthiness to enable investment in growth fields is essential for drawing up a growth strategy.The management of the MOL Group’s business operations is pre-mised significantly on the trust of stakeholders. To restore this trust, MOL will make a Company-wide effort to address the afore-mentioned priorities.

Looking to the FutureThe key priority for MOL in 2014 will be to define the key points of its growth strategy-the third arrow-and to execute it. With no immediate prospects for any appreciable increase in market prices in the marine transport industry, MOL must be mindful of the added value it can generate and the services it can sell. We must focus on sharpening our skills in those areas. In the LNG carrier and offshore businesses, -growing fields that are expected to generate stable profits over the long term-we will invest man-agement resources to expand these businesses. In response to

From “RISE” to “Soar”-All Hands on Deck to Create the Company’s Future-

MOL President Muto’s 2014 New Year Message

In the LNG carrier and offshore businesses, -growing fields that are expected to generate stable profits over the long term-we will invest management resources to expand these businesses.

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diversifying needs for marine transport and transport coordina-tion, MOL needs to further refine the maritime technical know-how and ship operation techniques it has amassed to date. MOL must become the customer’s preferred shipping company by virtue of its technical capabilities. In other divisions, MOL must graduate from reliance on market conditions, and set itself apart from other companies by providing customers with more sophisticated added value. In doing so, we should build up stable profits by concluding long-term contracts with customers. It is also essential to identify business opportunities in new fields. We should pursue new busi-ness opportunities based on a proper understanding of new trends and market needs. Examples include the emergence of a host of new transport opportunities following the Shale Revolution and developments surrounding environmental regulations related to ships, not to mention operations peripheral to marine transport, such as terminal operations. I encourage you to break free of past approaches and be determined to open a new chapter in the Company’s history through your own efforts. You must be highly attuned to the latest developments. Carry out your daily duties with sharp powers of insight, calm judgment, and a bold entrepreneurial

spirit. Let us be certain to shoot the third arrow and hit the mark.

All Hands on DeckThe future of MOL must be created, not predicted. We must assess every aspect of the business environment, draw up an original business plan, transform ourselves, and bring all hands on deck to create the MOL Group’s future. To this end, I want young employees to openly discuss issues in full without holding back. I want you to draw up the next medium-term management plan by pooling everyone’s knowledge together and striving to think flexibly. Your ideas will be enriched by thinking expansively and deeply, and enjoying yourself in the process. For young people in particular, this will be a precious experience that will contribute to your future. Of course, I will strive to work even harder than everyone else on this task.

In closing, I would like to pledge my commitment to safe operation across the entire MOL Group in 2014, as I wish the very best of health and happiness for all members of the MOL Group and your families around the world. Happy New Year!

Aker Philadelphia Shipyard Starts Construction of First Product Tanker for Joint Venture with CrowleyAker Philadelphia Shipyard, Inc. (APSI), the wholly-owned U.S. subsidiary of Aker Philadelphia Shipyard ASA (Oslo: AKPS), began production activities today on the first product tanker that it is building for its joint venture with Crowley. Crowley and APSI have signed contracts for the first four tankers, with a total contract value of approximately $500 million.

A small ceremony with repre-sentatives from Crowley and APSI was held in the shipyard’s Fabrication Shop to commence cutting on the ship’s first steel plate. That plate will become part of the double hull of the tanker that protects the cargo tanks. When completed in 2015, the vessel will be 600 feet long and be capable of carry-ing 50,000 tons of crude oil or refined petroleum products.

APSI President and CEO, Kristian Rokke, remarked, “We are excited to partner with Crowley to provide safe and reliable long term transportation options for the growing U.S. petroleum market. APSI has a strong his-

tory of building similar product tankers that are each playing a fundamental role in moving our nation’s energy today.” Mr. Rokke continued, “The cutting of this plate today is a tangible sign of the work that has been done to deliver on our commitments to customers and shareholders as we leverage our unique position to build these valuable assets.”

The new 50,000 dwt product tankers are based on a proven Hyundai Mipo Dockyards (HMD) design which incorporates numerous fuel efficiency fea-tures, flexible cargo capability, and the latest regulatory require-ments. The vessels will be con-structed with consideration for the use of LNG for propulsion in the future.

APSI is currently constructing two 115,000 dwt crude oil tank-ers for SeaRiver Maritime, Inc., ExxonMobil Corporation’s U.S. marine affiliate. Both of these tankers are scheduled for deliv-ery in 2014. APSI also has con-tracts for two 3,600 TEU contain-erships for Matson Navigation which will be delivered in 2018.

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Chart Industries, Inc. (Nasdaq:GTLS), a leading independent global manu-facturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases, today announced that Chart Ferox, a.s., a member of its Distribution and Storage (D&S) segment in Europe, has been awarded a contract by Hybrid Port Energy Gmbh & Co. KG (“HPE”), a subsidiary of Becker Marine Systems Gmbh & Co. KG, to provide LNG fuel storage and processing equipment for an LNG-Hybrid Barge, which will operate in Hamburg’s HafenCity. The LNG-Hybrid Barge is a unique project between HPE and cruise liner operators and will provide power to cruise liners - in this case AIDA cruise liners - during their layovers in the port of Hamburg using LNG to significantly reduce emissions in accordance with current and future MARPOL regulations. The ability of the cruise vessel to switch from diesel to LNG is expected to eliminate sulfur oxide (SOX) and particle emissions, lower nitrogen oxides (NOX) by up to 80%, and reduce carbon dioxide by an additional 30%.

Chart’s on-board LNG system is comprised of two 40ft LNG ISO intermodal containers and a skid mounted Gas Processing Unit (GPU), along with connecting equipment, controls, safety appliances and associated piping. LNG will be supplied in modular form using ISO containers swapped on a full-for-empty basis to eliminate the need for a dedicated bunkering station. All engineering, major capital equipment and assembly will be performed by Chart’s operations in Decin, Czech Republic. Equipment delivery and commissioning is scheduled for the second quarter of 2014 with the LNG-Hybrid Barge planned to come into operation during the third quarter of 2014.

Chart is a leading independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases. The majority of Chart’s products are used throughout the liquid gas supply chain for purification, liquefaction, distribution, storage and end-use applications, the largest portion of which are energy-related. Chart has domestic operations located across the United States and an international presence in Asia, Australia and Europe.

BC Ferries issues RFP for new LNG ferries| BC Ferries has announced that the company has issued a Request for Proposals (RFP) to five pre-qualified shipyards, including one Canadian proponent, to build three intermediate class ferries to replace the 48-year old Queen of Burnaby and the 49-year old Queen of Nanaimo. Both of these vessels are nearing the end of their service lives and will be retired in 2016.BC Ferries intends to build two vessels capable of carrying 145 vehicles and up to 600 passengers and crew to replace the Queen of Burnaby, which sails between Comox and Powell River and to replace the Queen of Nanaimo, which ser-vices the Tsawwassen – Southern Gulf Islands route. A third vessel capable of carrying 125 vehicles and up to 600 passengers and crew will also be built to augment peak and shoulder season ser-vice on the Southern Gulf Islands route, plus provide refit relief around the fleet. The RFP closes at the end of February 2014 and after a detailed evaluation of the proposals received, BC Ferries expects to award a contract to the successful bidder in the spring of 2014. The two-145 vehicle ferries are expected to enter service in 2016 and the 125-vehicle ferry is expected to be in service in 2017.

Chart to Provide LNG Fuel System for Marine Emissions Reduction Project in Hamburg

According to recent studies, GCC countries could poten-tially have to reduce hydrocarbon exports by the end of the next decade if they continue at current rates of energy consumption growth[i]. This was a key discus-sion opener for Brett Doherty, RasGas Company Limited (RasGas) Chief Safety Health, Environment and Quality Officer in the framing lecture addressing the core issue of development of energy efficiency policies at the 2nd Doha Carbon and Energy Forum (DCEF). Given the region’s heavy dependence on oil and gas wealth to fund develop-ment, countries’ approach to energy efficiency practices today will have far reaching implications for their future. Governments have a big role to play in setting policies that would secure long-term sustainable environmental protec-tion with economic and social development.

“Energy efficiency measures can be difficult to deploy because of the inability to capture broadly dispersed benefits and uncertainties in quantifying them. When gov-ernments develop policies to overcome these difficulties, organisations supporting sustainable development are duty bound and empowered to integrate energy efficiency measures in their practices bringing overall benefits to the country,” Doherty said.

Providing practical examples from the energy industry in Qatar, Doherty suggested Qatar Petroleum’s Energy Efficiency Programme provides a good model for other sectors such as commercial, residential buildings and trans-portation to adopt.

“In line with the Qatar National Vision 2030, RasGas wel-comes the opportunity to support the government’s push for better use and conservation of the country’s natural resources for the benefit of its long-term sustainable devel-opment,” concluded Doherty.

RasGas is a regular participant at industry events; it was also a platinum sponsor for DCEF ‘13 held at the Qatar National Convention Center (QNCC) in Doha from November 11-13th.

Why Energy Efficiency Is Imperative for Sustainable Growth

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Final investment decision made on Yamal LNG project| OAO NOVATEK (“NOVATEK” and/or the “Company”) announced that the Board of Directors of Yamal LNG approved a final investment decision (“FID”) for the Yamal LNG project, consisting of the development of the South-Tambeyskoye gas condensate field and the construction of a natural gas liquefaction plant on the Yamal Peninsula (the “Project”). All of the relevant corporate approvals had been issued earlier by NOVATEK and Total, shareholders of Yamal LNG.

The Yamal LNG plant will consist of three (3) liquefaction trains with overall capacity of 16.5 million tons per annum. Start of commissioning works at the first liquefaction train is scheduled for 2016 with the planned commercial launch of the first LNG train in 2017. The Project also requires the construction of transport infrastructure including a sea-port facility and an international airport located at Sabetta (north-east of the Yamal Peninsula). Up to 16 ice-class LNG carriers of special ARC-7 design will be used to effect year-round transportation of LNG to international markets. As part of the Project implementation, main tenders have been completed and key contracts have been signed. The EPC contract has been awarded to the joint venture of Technip and JGC. Overall capital expenditures of the Project are now estimated at $26.9 billion, of which $2.6 billion have already been financed by the shareholders.

Island Offshore has ordered its twenty-sixth vessel with Rolls-Royce design | UK Rolls-Royce has a won a con-tract to design and equip a new offshore support vessel for Island Offshore, to be built by shipbuilding group Vard. The platform support vessel is a Rolls-Royce design of type UT 776 CD, the second of this type ordered by Island Offshore this year. The UT 776 CD is an Offshore Service Vessel for world-wide service, with tanks for all types of liquid cargo, 1000 m2 cargo deck and accommodation for over 40 people in single cabins. In addition to the vessel design, Rolls-Royce will provide engines, deck machinery, azimuth thrusters, tunnel thrusters and control systems.Jørn Heltne, Rolls-Royce, Senior Vice President - Sales & Contract, said: “This order confirms the strong co-opera-tion between our two companies ever since the founding of Island Offshore in 2004. Island Offshore is an ambitious owner and together we have broken technological barri-ers.” This platform support vessel is designed to satisfy the general demands of the offshore industry and is the elev-enth order of its kind for the Island Offshore fleet.

The new vessel will be delivered from the Vard Brevik yard in Norway in February 2015, and the hull of the vessel will be delivered from Vard Braila in Romania. Upon delivery it will become the 26th vessel in Island Offshore’s fleet designed by Rolls-Royce.

On 21st November, DSME won a new order from a USA based client for an LNGC. This allowed the company to edge closer to its annual sales goal. The value of this contract is approximately 200 million USD and the vessel is scheduled for delivery at the begin-ning of 2017. DSME’s independently devel-oped Fuel Gas Supply System (FGSS) will be installed on this LNG carrier. DSME entered into a licensing agree-ment for this system with MAN Diesel & Turbo. This system will increase the vessel’s fuel efficiency by 20 percent when com-pared to a Dual –Fuel Diesel Electric(DFDE) engine.

Brittany Ferries set to order LNG fueled ferry | FRANCE Roscoff, France, headquartered Brittany Ferries said earlier this month that it is “about to sign” a contract with shipbuilder STX France, Saint Nazaire, for the construction of the world’s largest LNG fueled ferry. Jean-Marc Roué, president of Brittany Ferries supervisory council, says that with MARPOL limits on heavy fuel starting to take effect from January 1, 2015, Brittany Ferries is looking at a 2017 delivery date for the new ferry. The ferry is being studied under the Saint-Nazaire shipyard’s Pegasis (Power Efficient Gas Innovation Ship) project, a gas propulsion system developed by STX France for passenger ships. It was first announced back in March 2011. At that time, Brittany Ferries said the ship would by dual fuel engines combined with a high efficiency electric propulsion system to reduce energy consumption and CO2 emis-sions by 15 - 20% compared to current ferries and almost completely eliminating NOX and SOX emissions.Brittany Ferries said then that “the structure will make use of lighter compound materials and high strength glues, together with an advanced hull design” and that the ship would accommodate 2,400 passengers, 650 cars and 40 trucks and have a maximum speed of 25 knots. The concept illustration from the STX France website shown here shows what may, or may not, be the new Brittany Ferries ship.

UASC Japan Marine United Corporation (JMU) and IHI Corporation (IHI) agreed on the joint development of LNG fuel tank and supply system for LNG fueled container vessels for United Arab Shipping Company (UASC) headquartered in Dubai, UAE. These vessels are the UASC’s current newbuilding order of five 14,000 TEU vessels with six options and five 18,000 TEU vessels with one option made to the Korean shipbuilding company, Hyundai Heavy Industries, Co., Ltd (HHI). The Self-supporting Prismatic-shape IMO type-B LNG tank system (IHI-SPB Tank) developed and owned by JMU and IHI has been selected as the LNG fuel tank by UASC, and JMU will perform engineering for IHI-SPB tank and IHI will study the constructability of IHI-SPB tank. The Approval in Principle (AIP) from UASC’s designated classification society, DNV-GL, will be obtained for IHI-SPB tank and Fuel Gas Supply System (FGSS) to be developed by HHI for AIP.

The retrofit of the IHI-SPB Tank and FGSS will be performed once the infrastructure is in place to enable LNG supplies in major ports of call for these container vessels, however, these vessels will be designed to be constructed in such a way that IHI-SPB Tank and the FGSS can be installed with minimum work volume and period. These are the first large Asia-Europe trade container vessels in the world to plan LNG fuel.

IHI-SPB Tank has been originally developed as the cargo containment system for the large-scale carriers and/or floating production facility of LNG. Other than such use, IHI-SPB Tank is also quite efficient system for LNG fuel tank as IHI-SPB Tank can be designed in any shape and capacity to fit the hull form and complicated hold space as required. Due to this advantageous feature of IHI-SPB Tank, the number of LNG fuel tank and the relevant equipment can be minimized, and this contributes to minimize the cargo loss, the capital investment and operational cost. These features of IHI-SPB alumi-num tank in terms of cost effectiveness as well as its reliability and robustness have been highly assessed by UASC.

In order to meet both of the following requirements, saving fuel cost and consideration for environmental issues, it is sup-posed that the number of LNG fueled vessels will be increased. JMU and IHI will contribute to the development of LNG fueled vessels with its unique technology, “IHI-SPB Tank”.

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Qikou 18-1 Adjustment Project Starts Production |CNOOC Limited (the “Company”, NYSE: CEO, SEHK: 00883, TSX: CNU) announced today that Qikou 18-1 adjustment project has recently com-menced production.

Qikou 18-1 oil field is located in the west part of Bohai with an average water depth of 10 meters. In addition to fully utilize the existing producing facili-ties, this adjustment project has also built one plug-in process-ing facility and two production platforms. The commencement of this project will further improve the production and overall processing capability of the field and make the devel-opment of this field more effectively. The adjustment project is expected to hit its peak production in 2014.

Qikou 18-1 is an inde-pendent oil field in which the Company holds 100% inter-est and acts as the Operator.

Repsol completes the sale of LNG assetsRepsol has completed the sale of its LNG assets with the transferral to Shell of assets in Peru and Trinidad & Tobago. Previously Repsol had sold its stake in Bahia Bizkaia Electricidad to BP. With these agreements, Repsol has received approxi-mately $4.3 billion and has shed financial commitments and non-consolidated debt.|Repsol has completed the sale of liquefied natu-ral gas (LNG) assets with the handover to Shell of assets in Peru and Trinidad & Tobago after the relevant authorisations have been obtained. In October 2013, Repsol sold its stake in Bahía Bizkaia Electricidad (BBE) to BP, which exercised a purchase option over the asset.The combined transactions represent total pro-ceeds for Repsol of $4.3 billion (of $4.1 billion from the sale of assets to Shell and $0.2 billion from the sale of BBE to BP), and the company additionally sheds financial commitments and non-consolidated debt in line with the figures announced in February 2013 when the assets´ sale was agreed.The sale, which includes the minority stakes in Atlantic LNG (Trinidad & Tobago,) Peru LNG and BBE as well as the LNG sale contracts and time charters with their associated loans and debt, has generated approximately $2.9 billion for Repsol in profit and capital gains after tax, slightly higher than the guidance given when the transaction was agreed in February.

As a consequence of the transferral of assets, and in line with the company’s policy of financial prudence, Repsol will adjust the book value of the North American assets with a provision of $1.5 bil-lion after tax, in line with new fiscal regulations. The resulting capital gains yet to be booked will be included in the accounting of 2013 and 2014, in accordance with the transferral date of the assets included in the agreement.Repsol and Shell have additionally signed an LNG supply agreement by the latter to the Canaport regasification terminal in Canada of approximate-ly 1 million tons over a 10-year period.Following the completion of the sale, with an eco-nomic date set at 30th September 2012, Repsol reduces net debt by $3.3 billion and significantly strengthens its balance sheet.With this transaction, Repsol has divested assets for more than 5 billion euros, surpassing the objectives outlined in the 2012-2016 Strategic Plan to divest between 4 and 4.5 billion euros in the period.

JMU and IHI agreed on the joint develop-ment of IHI-SPB Tank for LNG Fueled Large Container Vessels

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NYK to Build Japan’s First LNG-Fueled Tug| NYK will build a tugboat1 featuring a dual fuel engine2 that can be powered by either liquefied natural gas (LNG) or heavy oil. Other than LNG carriers, this tugboat will be the first building in Japan of an LNG-fueled vessel. LNG received attention as a possible alternative to heavy oil because LNG does not emit any SOX and produces far less CO2 and NOX compared to heavy oil. In fact, using LNG as a fuel will cut this tugboat’s emissions of CO2 by about 30%, NOX by about 80%, and SOX by 100% compared to using heavy oil. This project will be subsi-dized by Japan’s Ministry of Economy, Trade and Industry and Japan’s Ministry of Land, Infrastructure, Transport and Tourism. Tokyo Gas Co. Ltd. (head office: Tokyo) will supply the LNG, and with the support of Tokyo Gas, NYK will make arrangements for a safe LNG supply system.

New Terntank tankers will feature the first Wärtsilä 2-stroke, low pressure, dual-fuel engines

| The new Wärtsilä technology was just recently intro-duced at a customer event held at the company’s Trieste, Italy facilities on November 12. The first engine utilising this technology is the Wärtsilä RT-flex50DF. The selection of the Wärtsilä RT-flex50DF engine is a central feature of Terntank’s ’Into the future - Baltic SO2lution’ project, which is in response to the European Commission’s TEN-T call 2013 whereby “Motorways of the sea actions” are identi-fied to promote the sustainability and safety of transport, and to improve either existing or new maritime links. The project supports the development of more environmen-tally sustainable and energy efficient shipping in the Baltic Sea region, and the building of an LNG infrastructure. Since the Baltic Sea is a designated Emissions Control Area (ECA), the use of LNG as fuel is seen as being an effective means of attaining cost-efficient regulatory compliance. The Wärtsilä 2-stroke dual-fuel technology will be rolled out to the entire Wärtsilä Generation X Engine low-speed engine portfolio. Already today Wärtsilä RT-flex50, Wärtsilä X62 and Wärtsilä X72 engines can be delivered with a dual-fuel (DF) ready package to prepare the engine for a DF conver-sion if needed later on.

Terntank Rederi a/s orders the world’s most environmentally friendly tankers | Terntank orders two new LNG-driven 15,000 DWT tankers with delivery in February and May 2016. The order also includes an option for two more vessels. Terntank is the first shipowner to order vessels within the project platform Zero Vision Tool (ZVT). With a newly developed dual fuel main engine from Wartsila and an advanced hull design from Rolls Royce Terntanks new vessels will be able to meet all future regulations already in 2016. The vessels emission of particles will be reduced by more than 90%, NOx by 80% and CO2 by 35% and the vessels will be built in accordance with IMO Tier III regulations.. - We will be using a large propeller together with a large main engine that only needs 65% of the maxi-mum effect to reach a service speed of 14.5 knots. With LNG having a10 to 15 percent better energy value compared to marine gasoil and with an optimized underwater hull design the vessels will have a fuel consumption of between 13.5 and 14.0 ton per day compared to todays 22 ton for existing vessels of similar size, says Jens P Buchhave, Managing Director of Terntank Rederi A/S.

Port of

Amsterdam opens tank location for LNG

“Port of Amsterdam is doing everything possible to encour-age the use of cleaner fuels, including LNG. As an energy port, we’re pleased to contribute to greening marine fuels,” says Koen Overtoom, Port of Amsterdam’s COO. “We’re currently developing plans with our partners to convert green gas into the even cleaner bio-LNG, so that we can reduce CO2 emissions even further.”

Organisers: Posidonia Exhibitions SA, e-mail: posidonia@posidonia-events.com

www.posidonia-events.com

Posidonia2-6 June 2014

Metropolitan Expo, Athens Greece

The International Shipping Exhibition

it's a great deal

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