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Call for expressions of interest
Small scale LNG vessel loading service
at the Fos Cavaou LNG terminal
Call for expressions of interest Small scale LNG vessel loading service at the Fos Cavaou LNG terminal
Disclaimer
This call for expressions of interest is intended to gauge market interest in a potential small scale LNG
vessel loading service provided by Fosmax LNG at the Fos Cavaou LNG terminal.
The information in this document shall prevail over any information regarding this service previously
published or communicated by Fosmax LNG, with the French version prevailing over the English version.
This call for interest neither commits interested parties to booking any of the needs expressed, nor
binds Fosmax LNG to executing the aforementioned terms and conditions for the small scale LNG vessel
loading service.
Call for expressions of interest Small scale LNG vessel loading service at the Fos Cavaou LNG terminal
Context
The use of small scale LNG is multiplying, both as a marine and road fuel and for supplying industrial
sites and public distribution systems not connected to the onshore grid.
In the Mediterranean, there are notable growth opportunities for developing LNG as a maritime fuel. A
number of factors are contributing to this, both regulations1 and increased environmental concern
among some global shipping players2.
The Fos Cavaou LNG terminal is located within the Marseille Fos port, which is France's biggest port and
the sixth largest in Europe in terms of tonnes handled3. Nearly 2.7 million passengers pass through
Marseille every year (ferry lines and cruise ships), totalling some 8,000 calls per year.
The Fos Cavaou LNG terminal has the dual advantage of a central location in the Western Mediterranean
and being situated in France's biggest major sea port, which has major LNG development potential and
prospects (bunkering vessels or supplying satellite stations).
The Fos Cavaou terminal can currently receive vessels with a minimum capacity of 15,000 m3LNG and a
L.O.A4 of at least 140 m. Many small scale LNG vessels, whether in operation or in the pipeline, have a
capacity of between 5,000 m3 LNG and 7,500 m3
LNG, and a L.O.A close to 100 m. They are therefore not
compatible with the facilities at the Fos Cavaou terminal.
To contribute to maritime LNG development, Fosmax LNG is considering making short/medium-term
investments to modify its existing facilities and to be able to receive the majority of existing or planned
small scale LNG vessels at the Fos Cavaou LNG terminal. These investments are being planned so as to
offer LNG market players the chance to load their small scale LNG vessels with LNG under optimal
conditions of safety, reliability and performance.
As such, Fosmax LNG is launching a call for expressions of interest to the market to discuss the technical
side of the project with interested parties and to ascertain the needs and expectations relating to the
small scale LNG vessel loading service proposed.
Depending on the results of this call for expressions of interest, Fosmax LNG may initiate a binding
reservation phase by mid-2017 if necessary and contemplate making the aforementioned investments.
Any parties interested in this service are therefore invited to express their interest to Fosmax LNG by e-
mail: [email protected].
1 Decision by the IMO to lower the sulphur content of fuel oil used by ships to 0.5% as of January 1, 2020 outside SECAs. 2 See recent orders for LNG-powered cruise ships 3 2015 Public Results 4 Length Overall
Call for expressions of interest Small scale LNG vessel loading service at the Fos Cavaou LNG terminal
Planned modification of the facilities
The planned modification of the facilities at the Fos Cavaou LNG terminal is split into three parts:
Adjusting the loading/unloading arm work envelope;
Modifying the configuration of the mooring hooks in the terminal jetty and changing how vessels
are accessed;
Building in redundancy for equipment mobilised for vessel loading operations.
The aerial photograph below shows the existing facilities at the Fos Cavaou terminal, including the jetty
where LNG vessels can berth.
Aerial photograph of the Fos Cavaou LNG terminal.
Call for expressions of interest Small scale LNG vessel loading service at the Fos Cavaou LNG terminal
Small scale LNG vessel loading service
Fosmax LNG plans to sell a small scale LNG vessel loading service from its facilities at the Fos Cavaou
LNG terminal, which will be modified accordingly.
This small scale LNG vessel loading service will coexist alongside the other services sold by Fosmax LNG,
as described in the access contract in force.5 At this stage, the service proposed by Fosmax LNG is
expected to be regulated and therefore fall with the remit of the French Energy Regulatory Commission
(CRE).
The main provisions of the small scale LNG vessel loading service are described below and may change
depending on the feedback received from the interested parties who respond to this call for expression
of interest:
The service will allow one slot per week to be reserved for the loading of a small scale LNG
vessel:
o Each slot consists of a maximum 24-hour window in which all operations must be completed
o Fosmax LNG plans to sell up to 50 slots in a full year
o Fosmax LNG will specify the date of the slot depending on the constraints for accessing the terminal's pier
o Reserving a slot incurs a minimum payment obligation for the price of the service whether the service is used or not
The tariff for the small scale LNG vessel loading service may change depending on the feedback
from this call for expression of interest Fosmax LNG and CRE may then set a tariff lower or
equal to that determined at the ATM5 deliberation on January 18, 2017, i.e.:
o €50,000 per slot + €0.5 per MWh loaded
Fosmax LNG does not plan to make the booking of regasification capacity a condition for booking
this small scale LNG vessel loading service;
The small scale LNG vessel loading service is scheduled to start commercial operation at the
Fos Cavaou terminal in early 2019. The service can then be subscribed between the date on
which commercial operations begin and March 31, 2030.
5 http://www.fosmax-lng.com/espace-commercial/devenir-client/conditions-contractuelles.html
Call for expressions of interest Small scale LNG vessel loading service at the Fos Cavaou LNG terminal
Expression of interest
Interested parties are invited to express their interest in the small scale LNG vessel loading service as
described above, specifying their needs and expectations, in particular in respect of the following points:
Expression of needs
o The number of slots that could be subscribed per year for the entire sale period,
itemised by half-year, where appropriate;
o The volume of LNG that would be loaded (the answers can be given in the form of a
low and high range depending on the scenario):
Per full year
Per operation
o Visibility of the scheduling and rescheduling of loading slots;
o The capacity and characteristics of the LNG vessel(s) likely to be used for the
operations;
o All other additional information deemed useful in connection with this call for
expressions of interest.
Expression of expectations
o The expected date for the start of commercial operations for the small scale LNG vessel
loading service, knowing that the earliest possible date is 1 January 2019;
o Expected subscription flexibility;
o All other expectations deemed useful in connection with this call for expressions of
interest.
Answers are expected no later than March 30, 2017 and must be sent to the following address:
Call for expressions of interest Small scale LNG vessel loading service at the Fos Cavaou LNG terminal
Confidentiality agreement
To enable every interested party to freely express its needs and expectations in respect of the planned
small scale LNG vessel loading service, a confidentiality agreement template is appended to this call for
expressions of interest.
Contacts
For questions, please contact:
Mr Guillaume Rombaut - 01 46 52 36 05 – [email protected];
Mr Cyril Hugoo – 01 46 52 30 68 – [email protected]
