LNG Barge Global

Outlook

2014-05-20 Markku Miinala 4th Annual LNG Transport, handling and storage / Bali, Indonesia

Contents

> Why LNG?

> LNG bunkering technology and the possible role of

bunkering barge in LNG logistics

> Future outlook for LNG and bunkering barges

Markku Miinala 2014-05-20

Your marine partner in Consulting,

Engineering and EPC packages

Innovative, energy efficient and environmental friendly concepts

Project development to ensure an attractive building contract

Experienced project management, planning and engineering resources

Life cycle support

Markku Miinala 2014-05-20

Deltamarin globally Offices in Finland: Turku (Head Office)

Helsinki

Rauma

Subsidiaries: Deltamarin Sp. z o.o., Poland

Deltamarin (China) Co., Ltd, Shanghai

Deltamarin Brasil Ltda., Rio de Janeiro, Brazil

Associated companies: Brodoplan d.o.o., Croatia (50%)

Shandong Deltamarin, China (50%)

V.Delta, Monaco (50%)

DeltaAVIC, Singapore (50%)

GPS Deltamarin (M) Sdn Bhd, Malaysia (49%)

Turku

Helsinki

Rauma

Deltamarin + subsidiaries: about 300 persons in total

Incl. associated companies: about 400 persons in total

Markku Miinala 2014-05-20

Key products & services for Shipbuilding Industry

2014-05-20 Markku Miinala

Key products & services for Offshore Oil and Gas Industry

2014-05-20 Markku Miinala

Why LNG?

Markku Miinala 2014-05-20

LNG as fuel - overview

+ Environmentally friendly and efficient fuel

+ Ample resources globally (shale gas)

+ Proven, available technology

- Low energy density => large storage volume

- Cryogenic => handling / safety

Markku Miinala

? Price

? Availability / infrastructure

? Standardization / rules & requirements

2014-05-20

LNG as fuel – overview

+ Environmentally friendly and efficient fuel

+ Ample resources globally (shale gas)

+ Proven, available technology

- Low energy density => large storage volume

- Cryogenic (-163 C°) => handling / safety

Markku Miinala

? Price

? Availability / infrastructure

? Standardization / rules & requirements

2014-05-20

LNG as fuel – overview

+ Environmentally friendly and efficient fuel

+ Ample resources globally (shale gas)

+ Proven, available technology

- Low energy density => large storage volume

- Cryogenic (-163 C°) => handling / safety

Markku Miinala

? Price

? Availability / infrastructure

? Standardization; Rules & Requirements in

the making

2014-05-20

SOx – IMO MARPOL Annex VI

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

5

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

Sulf

ur-

%

GLOBAL

Baltic SECA - SOx Emission Control Area + North Sea + English Channel SECA

SOx ECAs including NA ECA

EU ports and Inland waterways

California

Review in 2018

Markku Miinala 2014-05-20

The fleet of LNG fuelled vessels

Currently

> ~40 sailing vessels

> ~70 in order book

2020 estimate

> Estimations even up to 1000 vessels

Markku Miinala 2014-05-20

Example of current ships

> Tank capacities currently typically in 100..200m3 range (ferries, OSV’s)

> Trend towards larger capacities while fleet expands, but strong small end will be maintained

Markku Miinala 2014-05-20

LNG fleet evolution

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Fast ferries

Fast ferries possible, weight of tanks problem,

Placing on tank top

Incat hull 69 Buquebus 2x100m3? LNG fuel tanks

P=2*22000kW.

Bunkering station ?

2014-05-20

LNG bunkering options

> Truck to ship (~40m3/h)

– Limited capacity

– Flexible delivery

> Ship to ship (up to ~300m3/h)

– High capex and opex

– Flexible capacity, wide coverage

> Tank to ship (up to ~400m3/h)

– High capex, flexible capacity

– Fixed installation => limited coverage

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Offshore vessels

220 m3

2014-05-20

Ferries

> Wide variety and sizes

> Bunkering station location varies

> Passenger safety related regulations

> Fixed routes and schedules

Markku Miinala

Fast ferries

Fast ferries possible, weight of tanks problem,

Placing on tank top

Incat hull 69 Buquebus 2x100m3? LNG fuel tanks

P=2*22000kW.

Bunkering station ?

2014-05-20

Cargo vessels

Markku Miinala

> Wide variety of types and sizes

> Bunkering station location varies

> Routes and ports of call vary

> Containerized bunkering for auxiliary power

2014-05-20

Offshore support vessels, tugs,

patrol vessels

> Relatively similar in sizes

> Bunkering station location

can be standardized

> Operating long periods

in one area/location

Markku Miinala 2014-05-20

LNG barge design process

Markku Miinala 2014-05-20

Sample case of LNG logistics

Markku Miinala

Island 1

Island 2

Island 3

Island 4

Island 5

15 nm

20 nm 13 nm

10 nm

2014-05-20

Sample case of LNG logistics

Markku Miinala

Island 1

Island 2

Island 3

Island 4

Island 5

Ferry

Ferry Ferry

Ferry 15 nm

20 nm 13 nm

10 nm

2014-05-20

Sample case of LNG logistics

Markku Miinala

Island 1

Island 2

Island 3

Island 4

Island 5

Ferry

Ferry Ferry

Ferry 15 nm

20 nm 13 nm

10 nm

Cargo

harbour

Cruise

terminal

Cargo

harbour

LNG power

plant

2014-05-20

Sample case of LNG logistics

Markku Miinala

Island 1

Island 2

Island 3

Island 4

Island 5

Ferry

Ferry Ferry

Ferry 15 nm

20 nm 13 nm

10 nm

Cargo

harbour

Cruise

terminal

Cargo

harbour

LNG power

plant

Plan for the

next 20 years!

2014-05-20

Sample case of LNG logistics

Markku Miinala

Island 1

Island 2

Island 3

Island 4

Island 5

Ferry

Ferry Ferry

Ferry 15 nm

20 nm 13 nm

10 nm

Cargo

harbour

Cruise

terminal

Cargo

harbour

Needs after 5

years

1000m3

3 times/week

5 MW/6 hours

3 times/week

4000m3

Every 2nd week

100m3

3 times/day

1000m3

3 times/week

LNG power

plant

2014-05-20

Sample case of LNG logistics

Markku Miinala

Island 1

Island 2

Island 3

Island 4

Island 5

Ferry

Ferry Ferry

Ferry 15 nm

20 nm 13 nm

10 nm

Cargo

harbour

Cruise

terminal

Cargo

harbour

Need after 15

years

1000m3

10 times/week

5 MW/6 hours

6 times/week

4000m3

Every week

100m3

3 times/day

1000m3

6 times/week

LNG power

plant

2014-05-20

Sample case of LNG logistics

Markku Miinala

Island 1

Island 2

Island 3

Island 4

Island 5

Ferry

Ferry Ferry

Ferry 15 nm

20 nm 13 nm

10 nm

Cargo

harbour

Cruise

terminal

Cargo

harbour

LNG barge

fleet?

1000m3

10 times/week

5 MW/6 hours

6 times/week

4000m3

Every week

100m3

3 times/day

1000m3

6 times/week

LNG power

plant

2014-05-20

LNG barge design process

> Logistic feasibility study

– Estimation of the future LNG need development

– Several variations to be studied

– Feasibility study for needed vessels

> Barge outline project -> new building price

> Barge shipbuilding contract

Markku Miinala 2014-05-20

LNG barge design variations

> Propulsion: towed / own propulsion

> Speed

> Machinery: dual fuel (DF) or pure gas (PG)

> Bunkering equipment: No / Yes (which type?)

> Power generation possibility, capacity?

> LNG storage capacity

> HFO/MDO/MGO storage capacity

> Restrictions for main dimensions

> Sea keeping and manoeuvrability

Markku Miinala 2014-05-20

LNG barge design variations

End result should reflect the primary design targets

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Source: TGE

or

2014-05-20

Markku Miinala 2014-05-20

Thank you !