ARCTIC LNG SHIPPING NORTHERN SEA ROUTE

March, 2013 Rendez-vous du Monde Maritime

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Yamal  LNG  -­‐  Project  overview  

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Concept, surveys, pre-FEED (done) FEED (completed, optimization ongoing), State permits Final Investment Decision (FID) Early works, EPC LNG plant startup by trains

Pilot LNG project on the Yamal Peninsula, Russia q Onshore field / 2P gas reserves 879 BCM q  16 mtpa of LNG (3 trains) q  1 mmt of gas condensate q  LNG plant and port at Sabetta q  Sponsors – NOVATEK (80%) and TOTAL (20%) q  Supported by Russian government

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Geogra0ic  and  clima5c  condi5ons  

q  Subarctic and arctic climate q  Average annual temperature - 9°С q  Absolute minimum temperature - 57°С q  Strong winds and blizzards q  Permafrost depths of 300-500 meters q  Long-lasting ice cover (about 300 days a year) q  Swamps and lakes cover over 60% of the territory

-30 -25 -20 -15 -10

-5 0 5

10 15

I II III IV V VI VII VIII IX X XI XII

Polar  day  

Average annual temperature

Polar   Night  

°С  

South  -­‐  Tambey  

Южно  -­‐  Тамбейское  

Existing Project – Technical solution

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In Arctic area:

•  Oil Tankers shuttle of Varandey Project (3)

•  Container Vessels from Norilsk Nickel (5) between Arkhangelsk and Dudinka (Yenissei River)

Existing projects, they have a podded solution that insures that the vessels can operate on an year-round in Arctic environment

In Baltic sea :

•  Oil Tankers Mastera and Tempera (Neste Oil)

Securing azimuth thruster concept for Yamal LNG

Ice breakers for emergency and extreme conditions (Rosatom) •  6 in operation •  3 new ones in 2018-2020

Year around operation to Atlantic demonstrated by Norilsk Nickel •  stand alone operations •  9.7 knot reached in Kara sea during winter

Navigability to Asia demonstrated during summer months. In 2011: •  Sailing period from July to November with 34 voyages •  Novatek shipped 9 cargoes (600 thousand tons) via NSR to Asia

Russian Federation support system on Northern Sea Route (Emercom) 10 emergency & rescue centers equipped with special fire- fighting and rescue, and helicopters with specially trained crew

Yamal LNG

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Operations in the Northern Sea Route

Shipping in Arctic waters large scale NOVATEK’s gas condensate cargoes

71 thousand tons – first large scale condensate shipment in August 2010 through Northern Sea Route on «Baltica» tanker 120 thousand tons of condensate in September 2011. «Vladimir Tikhonov» tanker sailed in 7 days, 14 knots through the North Sea Route: •  LOA 280.5 m, 50 m width, 16.5 m draft, •  Similar parameters as the designed arctic LNG carriers

The successful large scale cargo shipments of gas condensate through NSR in 2010-2012 have provided exclusive valuable information on the ice conditions and proven feasibility of utilizing this sea route to ship LNG and gas condensate to Asia

Atomic icebreaker «50 let Pobedy» is providing assistance on ice passage to «Vladimir Tikhonov» tanker at NSR

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Shipping Arrangements

 

 

Port Days (NWE) Summer Winter

Days (NSR) Summer

NWE (Gate/Zeebrugge/ South-hook/Dunkirk) 9 12 -

Spain (Bilbao) 10 13 -

Italy (La Spezia) 14 17 -

Argentina( Bahia Blanca) 26 30 -

India (Dahej, Hazira) 27 32 -

China (Guangdong) 36 40 25 (-30%)

Taiwan (Taichung) 36 41 24 (-33%)

South Korea (Pyongtaek) 38 43 22 (-42%)

Japan (Tokyo) 39 44 22 (-44%)

•  Transshipments North West Europe: Access to existing jetty and storage

•  Number of Ice class vessels

Defined by volumes to NW Europe during winter and adjusted by volumes to Asia through Northern Sea Route during summer

•  Voyage time (One way)

Arctic LNG carrier

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Ahead open sea & light ice

Astern heavy ice

The Project Arctic LNG carrier are designed for safe and efficient operations in arctic ice condition as well as in open water condition: as a principle the vessel is sailing ahead first in open water and light to moderate ice condition and astern first in heavy ice condition

Arctic environment: heavy ice condition, low temperature •  Vessel will be ARC7 ice class tanker (according to RMRS or equivalent) •  Vessel will have propulsion system specifically designed to sustain ice impact

as normal ship operation •  All machinery and specifically equipment on deck will be designed for operation

at low temperature where darkness, fog, snow, severe icing are common phenomena

•  Vessel is diesel-electric propulsion with optimal fuel specific consumption on wide operating range and flexibility in fuel choice (HFO, MDO or GAS)

•  RMRS and BV has checked the detailed outline specifications

Vessel Bow: choosing ice bow to upgrade vessel ice capability OR choosing a bulbous bow to upgrade efficiency in open water

Arctic LNG tanker: Main choices

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•  Vessel Propulsion: choosing hybrid propulsion system to upgrade open sea performance maintaining reasonable maneuverability in ice OR choosing 3-POD or 4-POD propulsion to upgrade ice capability and maneuverability in ice

GTT MOSS

SPB

Hybrid 3 PODs

LNG Cargo Containment System: project is currently qualifying MOSS, GTT Membranes and SPB cargo containment system for safe operation in North sea and ice Current status – all systems meet acceptable safety level

Model test campaigns

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Ice model tests at Aker Arctic (Finland) and HSVA (Germany) ice model basins were carried out to secure the design concept in term of size and ice breaking capability

•  Different stern/propulsion concepts and bow forms has been evaluated together with CNIIMF and Aker Arctic

•  Ahead and astern ice tests : level ice, brash ice and pack ice •  Turning tests and turning on the spot tests: level ice and brash ice •  Ridge penetration tests

Open water model tests at VTT model basin (Finland) were carried out to secure the design in term of open water efficiency

•  Bare hull resistance tests. •  Sea keeping test including added resistance in wave and slamming

investigation

Bulbous bow vs. Ice bow

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•  Currently only ice bow is allowed for Arc7 vessels in NSRA or RMRS rules

•  DAS® concept or push-pull concept: efficiency and safety aspects

ARC7 ice bow

ARC7 bulbous bow

Conventional

P

S

Open water Ice

H

S Ice bow

Bulbous bow

Astern first

Operational profile: •  From North Europe to

Sabetta through Kara sea and Ob bay

•  Efficiency

•  Navigation safety

3 azimuth propellers Arc7 with a moderate ice bow LNGC

   1.  Evaluated  the  opera5onal  environment  2.  Studied  the  exis5ng  project  3.  Tested  the  concept  feasibility  through  model  test  

Yamal  LNG  has  concluded  on  a  concept  with  3  azimuth  propellers  Arc7  with  a  moderate  ice  bow  LNGC  

 

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Summary and Conclusions

Espen Selstad LNG Shipping Manager Yamal LNG

ARCTIC LNG SHIPPING NORTHERN SEA ROUTE

thank you Q&A

March, 2013 Rendez-vous du Monde Maritime