©2016 American Bureau of Shipping. All rights reserved.

LNG As Marine Fuel & Project Development

Adi Aggarwal, PE, PMP Program Manager, Global Gas Solutions Portland, OR 14 September 2016

16th Biennial Harbor Safety Committee Conference

2

Overview

Drivers for LNG as Marine Fuel

ABS Bunkering Study and Project Development

ABS Bunkering Advisory

Courtesy: Saltchuk

3

LNG as Marine Fuel: Drivers

Economic Feasibility

Environmental Stewardship

Regulatory Compliance

Copyright: TOTE

4

Environmental Regulations

IMO Annex VI – Prevention of Air Pollution from Ships (19 May 2005)

5

IMO Annex VI

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024

Percent Sulphur

0.1

Global Limit

7/1/2010

California MDO: 6/30/2009

California MGO: 6/30/2009

North Am.8/1/2012 SECAs

EU Ports and Inland 0.1%: 1/1/2010 Greek Ports 1/1/2015

1/1/2020

2018 Review to decide postponing

until 2025LOW-SULPHUR

FUELS

1/1/2012

GlobalSOx ECAsEU ports and inland waterwaysCalifornia5/19/2006

LOW-SULPHUR FUELS/

SCRUBBER/LNG

AVERAGE SULPHUR CONTENT

If Review is negative

If Re

view

is p

ositi

ve

6

Achieving Regulatory Compliance

Sulfur reduction in HFO

Fuels with lower sulfur content – MGO

Post-combustion sulfur reduction – scrubbers

Use of alternate fuels

7

ABS LNG Bunkering Study

Provides Guidance for: Gas fuelled vessel operators Bunker vessel operators Bunkering facilities operator

Includes: Regulatory roadmap in North America Risk assessment templates Guidance on training competencies Database of state and local agencies Database of port stakeholders

Second Edition Port directory and survey Project guide Lessons learned from early adopters

2nd Edition

8

Project Guide

Source: Bunkering of Liquefied Natural Gas-Fueled Marine Vessels in North America (2nd Edition)

9

Lessons Learned from Early Adopters

Adoption of LNG as a marine fuel requires a dedicated team

Economic and Environmental Stewardship

Use Trusted Advisors

LNG is readily available in North America

Crew training is essential

Early and often dialogue with the regulatory bodies

10

ABS LNG Bunkering Advisory

Key characteristics impacting Tank Capacity

Vessel compatibility

Operational issues for supplier and receiver

Monitoring and controlling of LNG

Bunkering operation

Custody transfer

11

ABS Global Gas Solutions

Adi Aggarwal, PE, PMP Program Manager, Global Gas Solutions

– Mobile: 1-281-386-7064 – Email: aaggarwal@eagle.org

Energy Efficiency

Environmental Protection

Safety

www.eagle.org

CONFIDENTIAL