ASIA Members Forum Oct 2019 - Mark Bell - SGMF - LNG Marine Fuel Institute
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ASIA Members Forum
Oct 2019
Mark Bell – SGMF
Agenda
Safety Arrangements
Welcome
Ahmad Adly Alias, Vice President, LNG Marketing and Trading, Gas and New Energy Business, PETRONAS
SGMF Update – Mark Bell, General Manager, SGMF
• PETRONAS - Positioning Malaysia as Asia’s Premier LNG Bunkering Hub
M. Rafe Ramli (Head, Techno Commercial, Project GREAT, LNG Retailing)
• DNV GL – Maritime Forecast based from the Energy Transition Outlook 2019
Dr. Imran Ibrahim (Principal Consultant, Head of Research and Development, Maritime Advisory)
• Eastport Marine Sdn Bhd – LNG virtual pipeline development and support systems in Malaysia
Benjamin Nair (Executive Director)
Coffee Break
• China Classification Society – LNG used as marine fuel in China: status, challenge and prospect
Shaowei Gan (Technical Manager, Overseas Technology Centre)
• LNG Marine Fuel Institute – Australia Moving Forward Kindly hosted by:
Tony Brooks (Founding Director)
• Pavilion Energy – Enabling LNG Bunker Business Growth in Singapore Port
Chris Lu (VP, Head of Marine Business)
• FueLNG, LNG Bunkering in Singapore
Saunak Rai (General Manager) & Siah Poh Chiang (Operations Manager)
Lunch & Networking
PETRONAS Twin Towers Skybridge & Observation Deck Tour
SGMF at a glance…. Industry leading NGO representing best practice from the Gas fuelled shipping supply Chain • Founded in 2013 now with over 140 members across the sector Including Suppliers / Owners / Operators / Class / OEMs / Shipyards / Port Authorities (Open to all – not for profit) • Provides Regulators with key guidelines as key input for National and International Standards • Works with Industry at all Levels IMO – EU – USCG – MPA and other NGOs • Analyses and solves issues with regard to Safe Operations, Technical, Quality and Quantity, Training and Competence and Environmental matters • Regular meetings and Forums across all Geographies for members interaction • SGMF Portal is key resource for Industry data and member interaction www.sgmf.info • IGF Code Vessel Focus
22 Individuals representing all
Sectors and Geographies
governing board
24 + 9 Individuals
representing all Sectors
Currently 7 live work
WG
6.4
WG WG groups ~ 12 individuals in
WG WG 10.0 WG 6.3
6.0 9.0 5.0 GHG
Study
Users
Group
each, often specialists
both from members and
WG WG WG
academia
7.0 WG 14.0 WG 3.0
WG
1.0 2.0 8.0
Who we work with……
Gas Fueled Value Chain
Regulatory Framework – SGMF Guidelines
• Gas as Fuel an introductory guide
• Bunkering Operational Guidelines
• Bunkering Competency Guidelines
• Quality & Quantity Contractual Guidelines
• Recommendations of Controlled Zone for LNG Bunkering
• Simultaneous Operations for LNG Bunkering
• Manifold Arrangements for IGF Vessels
• Quick Connect /Disconnect Couplings
• Safe Working Distances for LNG Bunkering
• ESD and Control systems
• LCA study for Gas Fuelled Shipping
Soon to come…by end 2019
• Flexible Hose Selection and Handling TGN 6.6
• Methane Number Considerations WG 9.0
• Dry Docking and Maintenance for IGF vessels WG10.0
4. TC Work Group Update (see TC12-3_ WGs and Projects List)
4.1. WG 6 Functional Design Requirements
4.1.1. TGN06-06 hose handling - TC publication approval
4.2. WG 9 Gas Quality Considerations for IGF ships
4.3. WG 10 Shipyard Work Practices for Drydocking
4.4. WG 14 Training & Competence – Syllabus Elements
Operational Risks with cryo liquids – materials and health
Pressure management strategies
Hose handling details
Formal risk mitigation – methods and benefits
SIMOPS specifics
Gas Fuelled Fleet Progress 2019
0.2% of
0.4%
world fleet
of
world
fleet
180 m-3 to 38,000 m-3
Further
66,000 m-3
Estimate 6000+
Bunker transfers so far
Ref: DNV GL / SGMF members database 2019
New Bunker LNG Bunker Vessels
SHIP Operator IMO Delivery Cont Capacity Region
[m3]
Seagas Sirius 7382691 2013 Type C 187 Baltic
Engie Engie 9750024 2017 Type C 5000 N EU
Zeebrugge NYK
Fluxys
Cardissa Shell 9765079 2017 Type C 6500 EU
Coralius Gasum 2017 Type C 5800 Baltic
Oizmendi 9494981 2018 Type C 600 EU
Coral Methane Anthony 9404584 2018 Type C 7500 Carib
Veder (Conv)
Kairos BSM 9819882 2019 Type C 7500 EU
Clean TOTE \ 2018 Membrane 2200 USA
Jacksonville
FlexFueler 1 Titan LNG \ 2019 Type C 1480 EU
LNG London Victrol / ENI 2019 Type C 3000 EU
CFT 06105621
10 In operation 39,767
19 on order +66,600
22 Individuals representing all
Sectors and Geographies
governing board
24 + 9 Individuals
representing all Sectors
Currently 7 live work
WG
6.4
WG WG groups ~ 12 individuals in
WG WG 10.0 WG 6.3
6.0 9.0 5.0 GHG
Study
Users
Group
each, often specialists
both from members and
WG WG WG
academia
7.0 WG 14.0 WG 3.0
WG
1.0 2.0 8.0COMPLIANT FUEL CHOICES
TODAY – Tomorrow?
LSFO
LNG
SCRUBBER1) Use of LNG as a Marine Fuel to comply with IMO 2020?
MGO/ MDO/
HFO LSFO LNG LH2
MDO MGO
S
2) Use of LNG as a Marine Fuel to comply with IMO 2050?
MGO/ MDO/
LSFO LNG LH2
MDO MGOLife Cycle GHG Emission Study on
the use of LNG as Marine Fuel
Final Results
Copyright (c) (2019) thinkstep – All rights reservedWhy this Study?
Context
The international shipping industry, as other industry sectors, are
under pressure to reduce emissions.
The International Maritime Organization (IMO) has announced the
ambition to reduce the GHG emissions from international shipping
by at least 50% by 2050 compared with 2008.
More stringent air quality regulations, such as the IMO 2020 global
sulphur cap, are almost upon us.
Accurate, up-to-date and reliable GHG inventory data
as all well as local pollutant data are key to understand
if LNG is a viable option to reduce GHG emissions and improve
air quality in the international shipping industry.
Source: DNV GL – Global Sulphur Cap 2020, 2018Goal & Scope
Approach and Methodology
▌ The analysis was performed:
by following the life cycle approach (ISO 14040/44) from Well-to-
Wake (WtW)
for a global average fuel supply inventory, based on specific
regional consumption mixes by specific production countries
for current and post-2020 fuels
for gas and oil-based ship engine technologies
considering the most common ship engine technologies in
operation, taken into account the specific fuel consumption and
methane slip
looking at GHG emissions and air quality
using industry data, provided by
© thinkstep 2019KEY Messages
Well-to-Wake GHG Emissions
Critical Review
▌ Following ISO 14040/44, this study is critical reviewed by independent experts
▌ Reviewers are:
Reviewer Organisation, Location, Position Role
Philippe Osset Solinnen, Paris (France) Chair of
CEO, member of the ISO 14040/14044 working group Panel
Prof. Dr. Atsushi Inaba Kogakuin University (Japan) Reviewer
Department of Environmental and Energy Chemistry
Prof. Dr. Friedrich Wirz Hamburg University of Technology (Germany) Reviewer
Head of Department Marine Engineering
Dr. Michael Wang Argonne National Laboratory (USA) Reviewer
Head of Systems’ Assessment DepartmentKey Messages
TOP 12
1. The use of LNG shows GHG reduction of up to 21 % compared with current
oil-based marine fuels over the entire life cycle from Well-to-Wake (WtW).
2. On an engine technology basis, the WtW GHG emission reduction for gas
fuelled engines compared with today’s HFO fueled engines are between 14-
21 % for 2-stroke slow speed engines, and between 7-15 % for 4-stroke
medium speed engines.
3. On a Tank-to-Wake (TtW) basis, the combustion process for LNG as a marine
fuel shows GHG benefits of up to 28 % compared with current oil-based
marine fuels. On an engine technology basis, the TtW emissions reduction
benefits for gas fuelled engines compared with HFO fuelled engines are
between 18 to 28 % for 2-stroke slow speed engines and between 12 to 22
% for 4-stroke medium speed engines.
4. Local pollutants, such as sulphurous oxides, nitrogen oxides and
particulate matter, are reduced significantly when using LNG.Key Messages
TOP 12
6. Well-to-Wake GHG emissions (today’s fuels)
14-21%
GHG reduction when using LNG: 14-21% compared with HFO2.5Key Messages
TOP 12
6. Well-to-Wake GHG emissions (today’s fuels)
7-15%
GHG reduction when using LNG: 7-15% compared with HFO2.5Key Messages
TOP 12
7. For post-2020 oil-based marine fuels (LSFO)or the use of HFO in combination with
an exhaust gas cleaning system, the result is slightly better.
LNG 2-stroke engines have GHG advantages between 14-22 %, and
4-stroke engines between 6-16 % compared with HFO fueled engines.
8. As a direct comparison if the global marine transport fleet2015 were to completely
switch to LNG then there would be a GHG emission reduction of 15 % based
upon engine technology alone.
9. GHG emission benefits are reduced depending upon the degree of methane slip
incurred during the combustion process.
High pressure 2-stroke Diesel cycle engines and marine gas turbine propulsion units
incur methane slip less than 1 % of the overall WtW GHG emissions.
Low pressure 2-stroke and 4-stroke Otto cycle reciprocating engines are more sensitive
to methane slip with 10-17 % of the WtW GHG emissions resulting from unburned
methane in the combustion process.Key Messages
TOP 12
10. This study presents the current status of the industry; Ongoing optimisation in the
fuel supply chain and engine technology developments will further enhance the
benefits of LNG as a marine fuel.
11. An indicative analysis showed that bioLNG and synthetic LNG can provide an
additional significant benefit in terms of WtW GHG intensity.
12. GHG emissions of fuel supply chains differ from region to region due to a large
number of variables, specific supply chain analyses are key in order to get to a
global average GHG intensity.https://info.thinkstep.com/LNG-GHG-Study
Natural Gas as a Marine Fuel • Safe to Use and becoming readily available • Natural Gas [LNG] is a fully compliant IMO 2020 fuel GHG reduction: 21% wtw to 28% ttw Significant Local pollutant reduction: 100% SOx, 95% NOx, 99% PMs • 15% CO2 reduction achieved if the world fleet switched today • Distribution and supply is taking time and will continue to do so • Marine Propulsion Engines can readily burn Methane • Use of BioMethane and Synthetic methane would further improve wtw % • Upstream CH4 losses can be reduced improves wtt Further on board CH4 slip improvement is needed (4Stroke Gas engines)
Conclusions • Alternative fuels are available – Natural Gas is one of them • 2020 is already here and Gas is a Fully Compliant 202O fuel • 2050 trading ships are being built now Difficult to meet 2050 reductions without it’s extensive use Deep sea sector – Cruise and Container showing large take – up of LNG • Currently 0.2% - Expect 2% (1500) - Won’t see 20% for a long time • 2020 – Another year of change for maritime fuels
https://info.thinkstep.com/LNG-GHG-Study
THANK YOULNG used as marine fuel in China: status, challenge and prospect GAN Shaowei Overseas Technology Center China Classification Society Copyright © China Classification Society
Contents
Overview
Driving force and momentum for LNG as marine fuel in China
Current status
Challenges
LNG price
Administrative barriers
Technology and product gap
Prospect & outlook LNG waterborne supply chain
Safety, environmental protection, Create value for clients & society p2Energy structure reform and transition
• Although NG consumption in China grows fast, its share in primary energy Structure of primary energy consumption in 2018
consumption is still far lower than global average level, resulting in a
compelling need for energy structure reform and transition.
• NG is expected to reach 10% in the total primary energy consumption by
2020, transport sector is considered as of potential and promising.
NG consumption pattern in GLOBAL
China
CHINA
Source from: Sublime, China NDRC
Safety, environmental protection, Create value for clients & society p3Energy conservation & emission reduction strategy
• China declared war against air pollution in Actions
AIS ships map
2013 when it released its Air Pollution
Action Plan, which renewed in 2018 with a
Three Year Action Plan. Compared to 2015
levels, by 2020 to reduce
SOx and Nox by over 15%; and
PM2.5 by over 18% for cities failing
meet emissions standards.
• The Law on the Prevention and Control of
Air Pollution came into force on Jan 1st
2016,
ship emissions in total account for
• Shipping is considered as a contributor to • 13% ~ 16% in the Bohai Rim .
• 28%–30% in the Yangtze River Delta.
air pollution, especially for the coastal
• 12%–16% in the Pearl River Delta .
areas.
Source: Air Pollutant Emission Inventory of Marine in China (2014)
Safety, environmental protection, Create value for clients & society p4Development promoting use of LNG as marine fuel
LNG fuelled ships Inland waterways Coastal Ocean
Pilot project - from 2012 • Engine retrofitting was • Harbor crafts (tug boats) • LNG Ready concept was ever
to 2013, to accumulate the major pattern – and ferries were the first popular ;
experience and set up the easiest to think, movers due to fixed
• LNG is often talked as a
regulatory framework. but the worst result route and bunkering
transitional fuel, but definitely a
proven. convenience;
Demonstration project valid solution to meet EEDI
- from 2014 to 2017, • Replacement of new • Progress still slow. Phase II & III, which is most
encourage the industry engines was urgent for the industry. This
to uptake LNG as fuel. encouraged by grant. boosts the uptake of LNG for
high sea ships.
1st LNG fuelled tug in China 1st LNG bunkering ship in China 1st LNG bunkering pontoon in China
Safety, environmental protection, Create value for clients & society p5Current status of LNG fuelled ships in China (as of October 2019) Safety, environmental protection, Create value for clients & society p6
Current status of LNG bunkering facilities in China (as of October 2019)
LNG bunkering facilities category LNG bunkering facilities location (LNGBV excluded)
Safety, environmental protection, Create value for clients & society p7Case – 6500HP LNG fuelled harbor craft (NB)
2×25 cbm LNG tanks with cold boxes Pure gas engines
Gas safe
engine room
with GVU
Safety, environmental protection, Create value for clients & society p8Case – PUHAI 211 (retrofitted)
PUHAI 211 – Containership
Before retrofit After retrofit Double wall pipe
WeiChai 8170ZC-11 WeiChai 8170ZC-11
Main engine
2×530 kW (retrofit)
LNG fuel tank -- Type C, 20 m³
LNG fuel tank
Capacity（TEU） 182 177
Ship dimension（m） 88.23 x 15.6 x 5.6
DWT（MT） 3350
Operating area Yangtze River (China) Main engine
Safety, environmental protection, Create value for clients & society p9Case – LNG bunkering pontoons
The world 1st LNG bunkering pontoon, Nan Jing, China
• The world first LNG bunkering pontoon
(Harbor Star 1), was delivered in 2013.
• Most LNG bunkering pontoons serve as
providing LNG and diesel oil together.
Typically 2 type C tanks with total capacity
of 500 - 600cbm, plus bunkering hose and
crane. Cargo oil tanks located below LNG
tanks.
• Simultaneous bunkering of LNG and oil is
not allowed.
Safety, environmental protection, Create value for clients & society p10Case – LNGBVs (ongoing)
8,500 cbm LNG Bunkering Vessel 12,000 cbm LNG Bunkering Vessel
Overall Length 119.3m 132.9m
Length between
116.1m 130.8m
perpendiculars
Breadth 19.8m 22m
Depth 11m 9.8m
Design draught 5.9m 5.8m
Service speed 13.5Kn 12.8Kn
Displacement 11100t 13300t
Navigation area Unlimited China coastal and ice class-B area
Service objects Medium and large containers, Aframax to VLCC, Coastal LNG fuel vessels, ultra-large container ships and VLOC
Newcastle to VLOC
Tank IMO type-C tank, 24250m3 IMO type-C tank, 26000m3
Connection Hoses Hoses
Maneuverability and 4-stroke medium speed dual fuel engine Dual fuel generator sets drive 2 set of full swing rudder and propeller, there are 2 bow
propulsion thrusters in the bow side
Mooring equipment 4+2 mooring winches, 14 mooring bollards Quick release hooks, mooring lines; mooring systems with quick release
Metering manner CTS, mass flowmeter Mass and calorific value metering
BOG handling GCU, Sub-cooler Reliquefication unit
Operating conditions Ship to ship berthing in Beaufort class-5 condition Self-berthing and unberthing in the sea state of current speed 1.5kn, wind speed
26.8kn, wave height 2.5m, equivalent to DP2, and capable of bunkering to ships or
jetties
Mother terminal Zhoushan LNG receiving terminal Shanghai LNG receiving terminal
Delivery Q2, 2020 2020
Safety, environmental protection, Create value for clients & society p11Regulatory framework for LNG used as marine fuel
Regulations/Rules/Standards
Application Category National
MSA CCS Industry standard
standard
LNG fuelled Statutory Regulations for Rules for Natural Gas
LNG as fuel - -
ships Natural Gas Fuelled Ships Fuelled Ships
LNG Rules of Classification
Statutory Regulations for
bunkering and Construction of LNG - -
LNG bunkering pontoons
pontoons Bunkering Pontoons
LNG
Statutory Regulations for Rules for LNG Bunkering
bunkering - -
LNG bunkering ships Ships
LNG ships
bunkering Design Code for Design
Land-based of LNG Port and
Specifications of
LNG Jetty(Draft)
LNG Bunkering
bunkering - -
Stations for Code for Design
stations
Ships of River LNG
(Draft) Bunkering Wharf
Safety, environmental protection, Create value for clients & society p12Regulatory framework for LNG used as marine fuel
Regulations/Rules/Standards
Application Category National
MSA CCS Industry standard
standard
Statutory
Rules for Construction
Regulations for
LNG and Equipment of Ships
LNG carriers Ships Carrying - -
transport Carrying Liquefied Gases
Liquefied Gases
In Bulk
In Bulk
LNG Bunkering
LNG Guidelines for LNG Fuel
Operation（including - - -
operation Bunkering Operation
STS）
LNG Floating Storage Guidelines for Liquefied
Units (FSUs) / Natural Gas (LNG)
Offshore
LNG Floating - Carriers Serving as - -
installations
Regasification Storage Floating Storage Units
Units (FSRUs) (FSUs)
Safety, environmental protection, Create value for clients & society p13Waterborne LNG value chain is preliminarily forming in China Safety, environmental protection, Create value for clients & society p14
Summary on the current status
The Gartner Hype Cycle with the progress of industry adoption of LNG as an alternative fuel
Safety, environmental protection, Create value for clients & society p15Contents
Overview
Driving force and momentum for LNG as marine fuel in China
Current status
Challenges
LNG price
Administrative barriers
Technology and product gap
Prospect & outlook LNG waterborne supply chain
Safety, environmental protection, Create value for clients & society p16Challenges – high LNG price
• China took over Japan as the world
largest LNG importer in 2018.
Presently the import volume of long-
term contract LNG to spot LNG is
about 8:2 in China.
• Long term LNG has typically been
indexed against crude oil prices.
• To make commercial sense, it has to
be shown that LNG can compete on
price with other energy sources, even
in markets where policy decisions
encourage LNG use, such as China,
price differentials matter.
Source: BP Statistical Review of World Energy 2019
Safety, environmental protection, Create value for clients & society p17Challenges – administrative barriers
Barriers on the inland waterway transport of LNG
• Small LNG carriers are required to carry out navigation safety assessment before going into inland
waterways. But the details and criteria for the assessment are not clear.
Different awareness level on the risk arise from LNG fuelled ships
• Although the Regulations and Rules for LNG fuelled ships are in place, Some jurisdictions still have
different awareness on LNG and subsequently banning LNG fuelled ships’ operation, e.g. classifying
LNG as a very dangerous substance.
Restriction on LNG bunkering and operations
• LNG bunkering are not allowed in some ports and areas;
• LNG STS operation is not allowed in ports.
Safety, environmental protection, Create value for clients & society p18Challenges – insufficient bunkering network
• There are more than 200,000 domestic
vessels in China, including IWW and coastal LNG bunkering facilities location (LNGBV excluded)
ships.
• There will be about 2,800 LNG fueled vessels in
the Yangtze river; 3,500 vessels in the Grand
canal; 700 vessels in the Pearl river ; 150
seagoing vessels by 2025, according to the
masterplan developed by the Ministry of
Transport;
• ＞ 100 of LNG bunkering stations/vessels will
be required, while so far only 20 facilities
finished or under construction.
Safety, environmental protection, Create value for clients & society p19Challenges – lack homemade key product/system
Key product/system Gap of technologies
Lack high performance and low emission gas engines
Gas engine
Lack large output, medium and low speed gas engines
Gas supply system
Insufficient experience and practice on high-pressure gas supply system
Lack key technology on key devices, such as LNG pumps, breakaway
Bunkering device
couplings, quick coupling, ESD system, etc.
Lack cryogenic valves with large diameter (DN > 250)
Cryogenic valves
Lack reliable sealing elements for cryogenic valves
Safety, environmental protection, Create value for clients & society p20Contents
Overview
Driving force and momentum for LNG as marine fuel in China
Current status
Challenges
LNG price
Administrative barriers
Technology and product gap
Prospect & outlook LNG waterborne supply chain
Safety, environmental protection, Create value for clients & society p21Outlook
China bunkering potential for domestic costal ships
• According to the existing fleet and
infrastructures, shipbuilding order, Year 2020 2025
shipowners' intention survey and
policies, the prediction was carried out. Low scenario High scenario Low scenario High scenario
• For existing ships, 2670 dry bulk Retrofitting
carriers and 448 containerships are 2% 3% 6% 8%
suitable for LNG conversion based on
LNG demand
our assessment of ships’ condition. 48.3 72.5 145 193.2
(KT)
• For new buildings: 360 coastal vessels
Low scenario High scenario Low scenario High scenario
are expected by 2020 1900 by 2025.
Newbuilding
3% 4% 18% 25%
LNG demand
7.9 10.5 256.5 356.3
(KT)
Safety, environmental protection, Create value for clients & society p22安全、环保，为客户和社会创造价值
Safety，Environmental protection，Create value for clients & society
Safety, environmental protection, Create value for clients & society p23Australia
Moving Forward
We’re open for Business
SGMF Kuala Lumpur
31 Oct 2019 Tony Brooks Founding DirectorThe Launch of LNG Marine Fuel Institute Launched at Parliament House in Canberra on June 21, 2017
LNG Marine Fuel Institute ● Headquarters in Perth, Western Australia. ● Uniquely positioned as the only independent not-for-profit organisation in the Asia Pacific region, servicing the needs of the LNG marine fuel industry. ● LNG MFI works with and for industry and government partners to provide information, advocacy and expertise to secure the long-term sustainability and impact of LNG as a marine fuel in the region.
Board of Directors LNG Marine Fuel Institute
Richard Sandover CHAIRMAN The Hon. Stephen Smith BOARD MEMBER
Chairman of Partners, Jackson McDonald Former Australian Foreign Minister and Defence Minister
Margot Matthews CEO Meg O’Neill BOARD MEMBER
Former Woodside, Alcoa Executive Chief Operations Officer, Woodside Energy
and Associate Professor Chemical Engineering at UWA
Tony Brooks BOARD MEMBER
Captain Walter Purio BOARD MEMBER Corporate and Government Relations at BE&R Consulting & CEO at Altegra
Founder and Global Advocate at LNG Marine Fuel Institute
Rod Duke BOARD MEMBER
Mary Hackett BOARD MEMBER CEO at GLNG, a joint venture between Santos, Petronas, Total and Kogas
Former CEO at Baker Hughes (a GE Company) Australia, New Zealand & PNGVision and Purpose Vision
To establish Australian LNG as the
primary marine fuel, to benefit the
nation by growing our industry and
reducing our environmental
footprint.
Purpose
To galvanize and drive our
members to work together and
assist them in breaking down any
barriers that arise in advancing the
Australian LNG marine fuel industry.What We Do
Collaborate Develop
● Activate and connect members ● Curate and develop knowledge
● Provide stakeholders access to experts ● Fill knowledge gaps
● Grow membership and partnerships ● Provide a unified voice of industry
to government
Inform
● We advocate for our membership
● Disseminate knowledge to inform discussion
● Grow community knowledgeMembers and Partners
Latest Developments
● BHP issues tender for 10 LNG fuelled bulk iron ore carriers and bunkering
● Australian Government has just passed new legislation commiting to IMO 2020
● Active investigation by a number of companies to establish bunkering facilities in major
ports all around Australia
● Federal and State Governments are very keen to support our LNG MFI initiative
● Key government representatives are asking for a roadmap to LNG bunkering
● East Coast LNG Bunkering JIP has been formedAustralian Port Locations
Australian Port Calls 2018-2019
Work in Progress ● We’re developing an Australian
Economic business case ...
and the opportunity is huge!
● We’re running workshops to identify
barriers and to create opportunities
● We run round table events and
forums for our membership and key
stakeholders to share expert
knowledge
○ Assessment of infrastructure
requirements for use of LNG as a
marine fuel
○ McKinsey - Economics of LNG as a
marine fuel in Australia
○ Anthony Veder - LNG ship-to-ship
bunkering operations
● Working with members to create
common messaging for governmentAustralia is open for business
The time is now
www.lng-mfi.orgEnabling LNG Bunker Business Growth in Singapore Port - SGMF KL Conference
LNG Will Be Oversupplied for the Next Decade
Global LNG Supply Surplus/(Deficient)
CONFIDENTIALLNG Price Expected to Stay More Competitive Compared to Fuels
3
CONFIDENTIALLNG Price Expected to Stay Competitive
LNG PRICING
Forward Curves as of 17 Oct, 2019
(in USD/MT)
600
500
400
300
200
100
0
SGO 10ppm Sing 380 HSFO 0.5% Sing LSFO TTF_EEL JKM_EEL
CONFIDENTIALOur
OurBusiness
Businesses
Pavilion Energy is a wholly-owned subsidiary MARINE FUEL
of Temasek. Headquartered in Singapore, its As a LNG bunker supplier licence
fully integrated energy business encompasses holder, Pavilion Gas continues to
a downstream, marine and regional business; develop LNG bunker supply
global LNG trading, shipping and optimisation; infrastructure; and delivery
models for the supply
upstream investments as well as energy of LNG bunker
hedging and financial solutions. to vessels.
Pavilion Energy is expanding its
global footprint with market access
into Europe and an office in Spain,
TRADING & SHIPPING OPTIMISATION
and driving a more sustainable
energy future fuelled by natural gas. Our strategic storage and shipping capabilities
enable us to optimise LNG trade movements
for efficient and reliable deliveries of
LNG from production sources to
energy demand centres
globally.
SINGAPORE & ENERGY
REGIONAL BUSINESS FINANCIAL SOLUTIONS
We have built a diversified energy
We understand energy contracts and its
business that spans LNG and PNG supply,
associated risks. We are able to monetise and
transportation and storage capabilities.
mitigate these risks effectively – and offer our
Pavilion Energy is committed to
financial expertise to counterparties to create
providing local industries with
solutions tailored to their specific needs.
reliable and sustainable
energy solutions.
5
CONFIDENTIALOur Milestones
NOV 2013 JAN 2016 APR 2018
Announced first major investment of Awarded the LNG Bunker Supplier Imported inaugural LNG cargo into Singapore for
20% interest in the Tanzania Gas Licence to supply LNG bunker to domestic use
Blocks for US$1.288 billion vessels in the Port of Singapore
JUN 2018
DEC 2013 OCT 2016 Signed HOA with Total to jointly develop LNG bunker
Received the Gas Shipper and Gas Appointed as one of the two LNG supply chain in Singapore
Retailer Licences for transportation and Importers to supply LNG into
retail of gas to customers in Singapore Singapore NOV 2018
Announced long-term charter of two LNG MEGI
newbuilds from BW Group
2013 2014 2016 2017 2018 2019
FEB 2019
MAR 2014 Announced Pavilion
Commenced LNG trading AUG 2017
Signed agreement with SLNG Energy’s first LNG
Corporation for Storage & Reload bunker vessel newbuild
MAY 2014 for Singapore on charter
Announced BW-Pavilion LNG joint services at the SLNG Terminal for 2
venture to acquire, manage and years
MAY 2019
charter maritime LNG assets Performed the region’s
SEP 2017
Announced option swap agreement first commercial ship-to-
JUN & SEP 2014 ship LNG bunkering
Signed LNG supply deals with Total with Uniper for access to Gate LNG
and BP, respectively Terminal and Grain LNG Terminal
JUN 2019
Announced acquisition of
Iberdrola’s portfolio of
LNG assets
6
CONFIDENTIALDiversified LNG
Supply Portfolio
~5 MTPA
Global Gas & LNG Portfolio
LNG Import Terminal Access
In Singapore, Spain and the UK
5 Vessels in our global fleet
Joint ownership of 3 vessels
via BW-Pavilion JV
CONFIDENTIALLeveraging our downstream
Singapore business
Pavilion Energy supplies to INDUSTRY ADVISORY ROLES
>30% industrial demand Member of
for natural gas in Singapore
LNG bunkering TR56 Technical Committee
LNG Importer for Singapore LNG Bunkering TR56 working group on
LNG specifications for quality & quantity
Appointed by the Energy Market Authority,
with access to 160,000 cbm storage at MPA SIMOPS Discussion Group
the Singapore LNG terminal
Society for Gas as a Marine Fuel (SGMF)
BIMCO LNG Bunkering
Competitive Price from Scale & Flexibility Contract Development Committee
Supply Security and Reliability
CONFIDENTIALOur Vision
We aspire to be the Leading LNG Bunker Supplier trusted by Global Shipping through:
Developing Robust LNG Bunker Supply Logistics and
Ecosystem in Singapore as a Home Base;
Expanding Footprints Globally by
Establishing a Global LNG Bunker Delivery
Network;
Providing ‘One-Stop’ Bunker Supply
Services and Assisting Customers with
Smooth Transitions for MARPOL2020.
CONFIDENTIALProven LNG Bunkering
Capabilities
Pavilion Energy plays a leading and active role
in Singapore's development of a flourishing
LNG bunkering ecosystem. LNG BUNKER
SUPPLIER
Commenced Truck-to-Ship LNG bunkering LICENCE HOLDER
operations in June 2019, with delivery of LNG
bunker to PSA Marine tug boats
Conducted the region’s first commercial
Ship-to-Ship LNG bunkering operations -
delivery of 2,100cbm of LNG bunker for
Gas Up, Cool Down and fuel to HOS Sleipnir
heavy-lift crane vessel in April 2019
Largest LNG bunker sales of 7,600cbm for
HOS Sleipnir commercial top-up in early
July 2019
10
CONFIDENTIALCommitment to
Last Mile Delivery
In February 2019, Pavilion Energy took FID on
the long-term charter of a state-of-the-art LNG
bunker vessel awarded to MOL.
To be delivered & operational in May 2021
Cargo capacity: 12,000m3
Containment system: GTT Mark III Flex
Membrane
Max. bunker transfer rate: 2000m3/hr
BOG handling with onboard reliq plant
MFM and on-line gas chromatograph
Highly optimised and manoeuverable
vessel design
Reduced vessel length at 112m
CONFIDENTIALTruck-To-Ship (TTS) Capabilities INFRASTRUCTURE
TTS Operation on 30 June 2019
Receiving Vessel:
PSA Marine Dual Fuel Tug Boat
Delivery Truck:
17 cbm Semi Trailer
CONFIDENTIALIntegrated Energy Solutions
Our service scope includes but is not GLOBAL INDEX
limited to: COVERAGE FOR
ENERGY FINANCIAL
LNG Bunker Supply and SOLUTIONS
Complementary MGO Supply
JKM
Ancillary Services such as Gas Up, TTF
Cool Down and Heel Top Up Henry Hub
Brent
LNG Supply for Non Bunker Use MGO …
(e.g. on-water ballast water
treatment systems)
Energy Financial Solutions
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CONFIDENTIALChris LU Richard TAN
Head (Vice President) Marine Marketing Manager
Marine Business Division Marine Business Division
T +65 6228 3661 T +65 6228 8113
E chris.lu@pavilionenergy.com E richard.tan@pavilionenergy.com
Contact Us
Careen LIM Meng Hsien WU
Marine Marketing Manager Supply Manager
Marine Business Division Marine Business Division
T +65 6228 8178 T +65 6228 8115
E careen.lim@pavilionenergy.com E menghsien.wu@pavilionenergy.com
Zhan Ming YANG
Marine Ops Manager
Marine Business Division
T +65 6228 3633
E zhanming.yang@pavilionenergy.com
GENERAL EMAIL: marinebiz@pavilionenergy.comLunch & Networking
Thank you to PETRONAS PETRONAS Twin Towers Skybridge
& Observation Deck Tour:
for kindly hosting the
2:20pm meet on KLCC Ground
Forum. Floor Centre Lift area, OR,
2:30pm - meet in Malaysian
Philharmonic LobbyYou can also read
