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LNG bunkering for Northern Tyrrhenian Sea: Opportunities and Perspectives
Bruxelles, 15th May 2014
Francesco Campanale
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Offshore LNG Toscana (OLT) shareholders
E.ON Global Commodities (46.79%) – Company belonging to the E.ON Group, one of the world’s largest private energy group, listed on the Frankfurt Stock Exchange
IREN Group (46.79% - Iren Mercato 41,71% and ASA Livorno 5,08%) – IREN listed on the Italian Stock Exchange, and founded in July 2010 from the merger between IRIDE and ENIA
Golar LNG (2.69%) – Shipowner specialized in the management of LPG carrier and LNG tanker fleets, belonging to the Fredriksen Group (owner of the largest oil tanker fleet in the world)
OLT Energy Toscana (3.73%) – the company that originally developed the project
OLT Energy
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Conversion of the LNG carrier 'Golar Frost' into a Floating Storage Regasification Terminal ‘FSRU Toscana’ moored 22 Kilometers from the Italian coast between Livorno and Pisa, in sea depth of 120 meters
EPCIC Contract awarded March 2008, Golar Frost purchased June 2008, conversion started June 2009 in Dubai
The FSRU Toscana left Dry-docks World Dubai on 2nd of June 2013. The terminal arrived offshore Livorno on 30th of July 2013 ready to be moored and commissioned
After installation works and connection with the national gas grid through a pipeline of 36.5 km, built and operated by Snam Rete Gas S.p.A., the Terminal received the first cargo commencing the commissioning tests and on 4th of October 2013 the first regasified LNG has been injected into the national gas grid
Since 20th December 2013 the terminal is fully operational and ready to receive LNG carriers
The Project in few words…
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and in few pictures…
Single point mooring
Regasification plant
Thruster Wobbe Index
Corrector
Turbo generators
Unloading arms
Blister
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Key technical and commercial data
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Operations based on ship-to-ship transfer of LNG in open sea. Ship-to-Ship manoeuvres approved for wave Hs up to 1.5 m while LNG transfer designed for wave Hs up to 2.5 m.
Regasification unit on board for send-out with nominal capacity of 3.75 bm3/a and a storage capacity of 137,500 m3 in 4 spherical Moss-type tanks more suitable for partially-filled terminal in offshore environment (anti-sloshing).
The terminal is completely self-sufficient and has the same operational features as typical onshore regasification terminals.
LNG loading occurs by direct transfer from LNG carriers moored side-by-side to the terminal via traditional (Jetty) loading arms.
Wobbe Index Corrector installed to produce Nitrogen can allow to receive most of the LNGs types.
Terminal is allowed to receive LNG carriers size in the range between 65,000 and 155,000 m3 (about 80% of the current worldwide LNGc fleet).
High flexibility in send out flow rate (maximum capacity of 15 MSm3/d with a very low minimum send out) allows high trading value to the users.
Since 4th October 2013 all commercial (Access Code, Capacity Contracts, etc) and operational (Cargo Handling Manual, Lng Carrier Approval Vetting Procedures, etc) documents have been published on OLT web site.
Operations & Maintenance Contract
Management and responsibility for all operations has been subcontracted to ECOS Srl – a joint venture company founded in 2010 by EXMAR (60%) and Fratelli Cosulich SpA (40%)
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ECOS has sole responsibility as “Armatore’ for the terminal
Fratelli Neri SpA provides all the marine support service:
Custom-built Guardian Vessel with fast rescue boat and emergency evacuation for 40 persons
2 x Custom built tugs of 110 tones bollard pull
Custom Built Crew Boat – max. speed 24 knots
Livorno
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European LNG outlook
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Declining European LNG Imports Total consumption of Natural Gas into Europe fell by 10% between 2010 and 2011 and by 2%
between 2011 and 2012 due to continuing economic crisis and the situation in the power sector.
Also the European LNG import fell due to the drop in gas demand and the strong competition for LNG in the global market, especially from Japan and South America.
The percentage of European LNG imports compared to pipelines has been reduced from 24% in 2011 to 18% in 2012.
Low level of utilization rates All European countries are affected: since 2011
European average (based on net import volumes) has been reduced by more than half from 40% to about 20%.
LNG is shipped/diverted to where the prices are the highest, currently Asia and South America.
Future: unknown (nuclear policy in Japan, Asian LNG demand, new exports project from North America, East Africa, Australia…).
Source: gle GAS LNG EUROPE
… all European LNG Terminals are proposing/developing new services to meet market needs, new requirements such as reloading, transhipment…
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European LNG outlook
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Development of “new” LNG services
Reloading: transfer of LNG from the terminal’s tanks into an LNG carrier (offered in France and Spanish terminals, Zeebrugge and Gate). For example in 2012 25 ship reloading have been performed in Zeebrugge LNG terminal and 37 in the Spanish market.
Trans-shipment: direct transfer of LNG from one LNG carrier to another (offered in France and Spain and from 2015 also in Belgium).
Small Scale LNG Services:
• Loading of bunkering ships: LNG is loaded on bunkering ships which transport LNG in smaller quantities or used for propulsion in substitution of diesel/MGO.
• Truck loading: LNG is loaded on tank trucks or used as fuel. In 2012 316 truck loading have been performed in Zeebrugge LNG terminal and 44.857 in Spanish market.
• Rail loading: LNG is loaded on rail trucks.
Transshipment at Montoir LNG terminal
Loading of Small LNG carrier at Zeebrugge LNG terminal
Truck loading at Zeebrugge LMG terminal
… or be available for Peak Shaving service for the security of the national Gas System
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Small Scale LNG Services
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Why?
Switching to LNG will result in significantly lower emissions, immediately contributing to Europe’s efforts to hit its climate targets imposing stricter requirements and increasing taxation.
Ships powered by LNG instead of the usual heavy fuel oil reducing emissions by up to:
Main barriers to be overcome Infrastructure is not developed enough to supply ships, trucks and trains with appropriate quantity and at the right geographical locations in order to have secure and efficient supply.
Lacking of flag state regulation for bunkering operations, even because most authorities do not have knowledge on the matter.
Who is going to invest first?
• Ship-owners will not start ordering LNG fuelled ships before the relevant LNG supply / infrastructure / regulations / pricing are well defined and planned. • Required infrastructure will not be planned/built if there is no certainty in demand for LNG bunkering from shipping companies.
FSRU Toscana as potential infrastructure for
LNG bunkering market in Tyrrhenian sea
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LNG Supply Infrastructure LNG Bunkering options LNG received as fuel
F S R U
LNG truck loading station
LNG fuelled vessels
Onshore LNG tanks
LNG fuelled trucks
SLC-to-truck
Industry
Truck-to-ship
LNG Bunkerbarge Onshore LNG terminals
LNG Bunker Vessel
FSRU Toscana: potential LNG bunkering operation
FSRU Toscana could use the existing port side facilities to unload the small quantities of LNG required for LNG bunkering. Feasibility studies, technical studies, authorizations and certifications (regarding, inter alia, mooring operations, cargo transfer, terminal port manifold), have to be obtained according to the standard requirements that are going to be finalized by EU by the end of 2014.
FSRU Toscana: strategic location
Olbia Civitavecchia
125 km
135 km
320 km
25 km
50 km
250 km
Strategies and initiatives for the supply and logistics of LNG for transport
Thank you for your attention
for more information www.oltoffshore.it