78
LNG
INDUSTRY
MARCH
2016
As the development of LNG fuel infrastructure and the
construction of commercial deepsea vessels in North America
has continued, ABS has played a supporting role, providing
classification services for LNG-powered and LNG-ready
vessels, as well as supporting the development of LNG
bunkering.
The classification society has taken part in two different
projects, with clients working towards an LNG-fuelled future
at different stages in the supply chain.
The granting of the first LNG-ready class notation by
ABS to a product tanker built by Crowley Maritime Corp.
demonstrated that, while some owners are planning for a
future with LNG in the energy mix, it is taking a phased
approach to its adoption.
Secondly, in a project that will bolster LNG bunkering
infrastructure in the US, ABS will also class an LNG bunker
barge under construction at Conrad Orange Shipyard for
WesPac Midstream and Clean Marine Energy (CME).
Supporting growth in LNG
bunkering
CME was founded to assist ship owners in complying
with tightening emissions standards, specifically related
to the sulfur limitations in ECA zones. By recognising the
occasionally slow pace of shipping companies in meeting
new requirements, as well as the need for specialised
finance, the group developed a proprietary funding
mechanism to eliminate the upfront capital cost that ship
owners face in complying with regulations.
In February 2015, CME placed an order for a 2200 m
3
LNG
bunker barge with Conrad Orange Shipyard to further the
development of a comprehensive mobile distribution system
for LNG as bunker fuel.
The barge, featuring a Gaztransport & Technigaz (GTT)
membrane containment system, is being constructed in
conjunction with Bristol Harbor Group acting as naval architect
and with gas handling equipment by GAS Entec Co. Ltd. CME
is actively involved with construction of the barge and will act
as the marketing agent upon its delivery in Jacksonville,
Florida, US, in mid-2016.
The project has a close relationship to the Marlin Class
dual-fuelled containerships built by Totem Ocean Trailer
Express (TOTE). CME worked closely with TOTE and other
parties to build a barge unit appropriate for TOTE’s needs,
but with the capability and flexibility to serve other
customers. Important design criteria for the barge included
its freeboard and water draft, loading height, LNG transfer
rate, transit speed and blue water capability.
The barge will initially work loading LNG from JAX LNG
and delivering the fuel to TOTE’s Blount Island facility in
Jacksonville where the Marlin Class containerships will be
berthing. CME is working with other ship owners to deliver
LNG out of the JAX LNG facility to locations around the
south-eastern US.
CME’s proprietary financial offering is called the
Emissions Compliance Service Agreement (ECSA), which
transfers the expense of LNG assets to a third party. Under
the ECSA model, CME provides the capital, and the fuel
buyer – usually the ship owner or charterer – repays the
amount over a period of time based on the spread of fuel
savings between LNG and marine gas oil (MGO) and the
preferences of the specific fuel buyer. At the end of the
contract, the ship owner retains the asset and enjoys 100% of
the fuel savings, increased asset value, and the flexibility of a
dual-fuel capable vessel.
Along with its partner, WesPac Midstream, CME will
guarantee LNG supply to a ship owner in any location.
Together, CME and WesPac have identified and advanced
more than 15 marine LNG fuelling facilities in various stages
of development throughout North America and have a
catalogue of approximately 40 LNG bunker vessel
configurations that can be customised for any fuelling
scenario.
Figure 2.
Clean Marine Energy (CME) and WesPac Midstream
have placed an order with Conrad Orange Shipyard for a 2200 m
3
LNG bunker barge.
Figure 4.
Crowley Maritime Corp. will build a series of four
50 000 DWT product tankers to the ABS LNG-Ready Level 1
approval.
Figure 3.
The CME/WesPac bunker barge will be used to fuel
TOTE’s Marlin Class dual-fuelled containerships.
