message from general manager reducing … from general manager ... tug bollard pull, ice...

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The Newsletter of the Society of International Gas Tanker and Terminal Operators Ltd Spring 2012 Issue 27 www.sigtto.org In this issue . . . . Message from General Manager . . Page 1 Website upgraded . . . . . . . . . . . . Page 3 SIGTTO Meetings . . . . . . . . . . . . . Page 3 Ballast Water Convention . . . . . . . Page 5 Maritime Labour Convention . . . . . . Page 5 Preparing terminals for re-exports . . . Page 6 IGF Code drafting progress . . . . . . Page 7 IMO review of IGC Code . . . . . . . Page 9 Loading arm disconnections . . . . . . Page 9 Human factors - survey . . . . . . . . . Page 10 New members . . . . . . . . . . . . . . Page 11 Ras Laffan’s N-KOM facility . . . . . Page 12 . . . continued on page 3 MESSAGE FROM GENERAL MANAGER Reducing gas ship greenhouse gases In contrast to the LPG ship situation, assigning energy efficiency indices to the various designs of LNG carrier is proving to be a challenging task In the last SIGTTO newsletter, the Autumn 2011 edition, I spent some time on the development of regulations governing the technical means to reduce greenhouse gas (GHG) emissions from ships. The report noted that the 62nd Session of the IMO’s Marine Environment Protection Committee (MEPC 62), held in July 2011, was dominated by political debate leading to the passing of a resolution to adopt an amendment to MARPOL Annex VI Chapter 4. The extent of the debate precluded full consideration of the technical issues relating to the new Energy Efficiency Design Index (EEDI) requirements. As a result, the IMO Secretariat introduced an extra ‘inter-sessional’ meeting in January 2012 to address the technical issues not covered at MEPC 62, plus some new ones. This resulted in an agenda for the meeting which was overloaded. The current status for the application of EEDI to gas carriers is that LPG ships are all ‘in’ the scheme with an approved reference line. LNG carriers powered by slow-speed diesel engines and fitted with reliquefaction plants are also included in the same reference line, but some adjustment is required to give a fair comparison with LPG. This adjustment methodology was agreed at the inter- sessional meeting in January. There has, however, been no substantive progress on addressing the treatment of steam turbine LNG ships and dual-fuel diesel electric (DFDE) LNG ships. We are left with the rather anomalous situation in which some LNG carriers are in the regulation and some are out. One other aspect is that, under IMO procedural rules, once a resolution is passed, as at MEPC 62, there can be no amendments to that resolution until after entry into force, in this case 1 January 2013. This rule is enforced, even when there is a self-evident error or incompleteness in the resolution. It should be noted that issues relating to the application of EEDI requirements are not only affecting LNG ships. There are also serious issues surrounding the treatment of chemical carriers, large ore carriers, very large crude carriers (VLCCs), roll-on/roll-off (ro-ro) passenger and cargo vessels and cruise liners. All these shipping segments, plus unresolved issues around the treatment of ice class vessels, minimum power requirements and weather factors, are vying for time in the IMO meetings which is resulting in slow progress. This article is being written just prior to MEPC 63 which is due to take place on 27 February - 2 March 2012. At this meeting SIGTTO intends to have There is still no agreement on how steam turbine-powered LNG ships will be treated by the proposed EEDI regime

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Page 1: MESSAGE FROM GENERAL MANAGER Reducing … FROM GENERAL MANAGER ... tug bollard pull, ice classification, ... terminal service portfolio includes pilotage, vessel escort in

The Newsletter of theSociety of International Gas Tanker

and Terminal Operators Ltd

Spring 2012Issue 27 www.sigtto.org

In this issue . . . .Message from General Manager . . Page 1

Website upgraded . . . . . . . . . . . . Page 3

SIGTTO Meetings . . . . . . . . . . . . . Page 3

Ballast Water Convention . . . . . . . Page 5

Maritime Labour Convention . . . . . . Page 5

Preparing terminals for re-exports . . . Page 6

IGF Code drafting progress . . . . . . Page 7

IMO review of IGC Code . . . . . . . Page 9

Loading arm disconnections . . . . . . Page 9

Human factors - survey . . . . . . . . . Page 10

New members . . . . . . . . . . . . . . Page 11

Ras Laffan’s N-KOM facility . . . . . Page 12

. . . continued on page 3

MESSAGE FROM GENERAL MANAGER

Reducing gas ship greenhouse gasesIn contrast to the LPG ship situation, assigning energy efficiency indices to the variousdesigns of LNG carrier is proving to be a challenging taskIn the last SIGTTO newsletter, theAutumn 2011 edition, I spent sometime on the development of regulationsgoverning the technical means to reducegreenhouse gas (GHG) emissions fromships. The report noted that the 62ndSession of the IMO’s MarineEnvironment Protection Committee

(MEPC 62), held in July 2011, wasdominated by political debate leadingto the passing of a resolution to adoptan amendment to MARPOL Annex VIChapter 4. The extent of the debateprecluded full consideration of thetechnical issues relating to the newEnergy Efficiency Design Index (EEDI)requirements.

As a result, the IMO Secretariatintroduced an extra ‘inter-sessional’meeting in January 2012 to address thetechnical issues not covered at MEPC62, plus some new ones. This resulted

in an agenda for the meeting whichwas overloaded. The current status forthe application of EEDI to gas carriers isthat LPG ships are all ‘in’ the schemewith an approved reference line.

LNG carriers powered by slow-speeddiesel engines and fitted withreliquefaction plants are also included

in the same reference line, but someadjustment is required to give a faircomparison with LPG. This adjustmentmethodology was agreed at the inter-sessional meeting in January.

There has, however, been nosubstantive progress on addressing thetreatment of steam turbine LNG shipsand dual-fuel diesel electric (DFDE) LNGships. We are left with the ratheranomalous situation in which some LNGcarriers are in the regulation and someare out.

One other aspect is that, under IMO

procedural rules, once a resolution ispassed, as at MEPC 62, there can be noamendments to that resolution untilafter entry into force, in this case 1January 2013. This rule is enforced,even when there is a self-evident erroror incompleteness in the resolution.

It should be noted that issues relatingto the application of EEDI requirementsare not only affecting LNG ships. Thereare also serious issues surrounding thetreatment of chemical carriers, largeore carriers, very large crude carriers(VLCCs), roll-on/roll-off (ro-ro)passenger and cargo vessels and cruiseliners. All these shipping segments, plusunresolved issues around the treatmentof ice class vessels, minimum powerrequirements and weather factors, arevying for time in the IMO meetingswhich is resulting in slow progress.

This article is being written just priorto MEPC 63 which is due to take placeon 27 February - 2 March 2012. At thismeeting SIGTTO intends to have

There is still no agreement on how steam turbine-powered LNG ships will be treated by theproposed EEDI regime

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11

Int'l Reg ad

NEW MEMBERS

Quintet welcomedThree companies have joined SIGTTO as full members sincethe last Newsletter was published, while another two havejoined as associate members. The two associate members -SMIT-Lamnalco and Svitzer - are both tug companies. At thelatest SIGTTO Board meeting it was agreed that associatemembership could be extended to providers of specialistescort and harbour tug services at LNG terminals.

The listing of the five companies below shows their date ofjoining the Society. The SIGTTO membership now stands at127 full members, 61 associate members and 20 non-contributory members.

Thenamaris Ships Management 1 Sep2011Svitzer 1 Jan 2012SMIT-Lamnalco 1 Jan 2012TMS Tankers 1 Jan 2012Apache LNG 1 Feb 2012

Athens-based Thenamaris Ships Management Incmanages a fleet of 50 tankers and bulk carriers on behalf ofits Greek principals. These principals have recently enteredthe LNG field by ordering three 160,000m3 dual-fuel dieselelectric-powered (DFDE) LNG carriers at Samsung HeavyIndustries. The new ships will enter the Thenamaris-managedfleet upon delivery in 2013, 2014 and 2015, respectively.

Part of the of the AP Møller-Maersk Group,Svitzer providestowage services at 18 LNG terminals worldwide by means ofa large fleet of custom-built tugs. The company’s LNGterminal service portfolio includes pilotage, vessel escort inthe approach channels, berthing and unberthing, line handlingand safety capabilities such as firefighting and pollutionprevention and control. Tug design and service solutions aretailored to meet the needs of the individual LNG terminal,with due consideration to LNG carrier size, tug bollard pull,ice classification, safety and environmental requirements.Crews are trained at existing LNG terminals and at Svitzer’ssimulator facilities in Denmark.

The amalgamation of the SMIT and Lamnalco terminal tugand anchor handling vessel operations in 2011, following anagreement between Royal Boskalis and Saudi Arabia’s RezayatGroup, established a world class player in the oil and gasterminal services sector. The union was brought about whenSMIT was purchased by Lamnalco, a 50/50 Boskalis/Rezayatoperation. SMIT had been a fully owned subsidiary of Boskalis.

SMIT-Lamnalco operates over 50 terminal contracts,employs more than 2,000 staff on over 150 vessels and isactive in more than 30 countries across five continents. Theprovision of escort tug services at a number of LNG terminals

constitutes a major part of the new, combined company’soperations.

TMS Tankers Ltd of Athens undertakes the technical andcommercial management of George Economou’s tankerfleet. TMS Tankers is also responsible for supervising theconstruction of the fleet’s newbuildings and amongst thecurrent orderbook are four 160,000m3 LNG carriers to bebuilt at Daewoo Shipbuilding & Marine Engineering.

The quartet, contracted by Economou’s Cardiff Marine inJuly 2011, represent the Greek shipowner’s first foray intoLNG ship construction. The vessels, which will be deliveredover the 2013-14 period, will be powered by DFDE propulsionsystems. A few months after ordering the four ships atDaewoo Cardiff Marine purchased the 2004-built, 145,000m3

Muscat LNG from Oman Shipping. The vessel has beenrenamed Fuji LNG.

Apache LNG Pty Ltd is the Perth-based subsidiary ofApache Corporation, one of the world’s leading independentoil and gas exploration and production companies.Involvement with the LNG sector commenced in September2011 when Apache and its partners in the Wheatstone LNGproject in Western Australia agreed to proceed with thescheme’s development.

The two trains at the Wheatstone terminal will have acombined capacity of 8.9 million tonnes of LNG per annum(mta) and production is scheduled to commence in 2016.Apache will supply gas to Wheatstone from its Julimar andBrunello natural gas fields in the Carnarvon Basin. TheWheatstone partners have signed long-term LNG sales andpurchase agreements with Tokyo Electric Power and KyushuElectric Power in Japan.

Apache Corporation is also part of group seeking todevelop Kitimat LNG, a 5 mta LNG export scheme in BritishColumbia, and for this project it is the operator.

SMIT-Lamnalco is amongst the inaugural SIGTTO associate membersfrom the escort tug sector

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11

Int'l Reg ad

NEW MEMBERS

Quintet welcomedThree companies have joined SIGTTO as full members sincethe last Newsletter was published, while another two havejoined as associate members. The two associate members -SMIT-Lamnalco and Svitzer - are both tug companies. At thelatest SIGTTO Board meeting it was agreed that associatemembership could be extended to providers of specialistescort and harbour tug services at LNG terminals.

The listing of the five companies below shows their date ofjoining the Society. The SIGTTO membership now stands at127 full members, 61 associate members and 20 non-contributory members.

Thenamaris Ships Management 1 Sep2011Svitzer 1 Jan 2012SMIT-Lamnalco 1 Jan 2012TMS Tankers 1 Jan 2012Apache LNG 1 Feb 2012

Athens-based Thenamaris Ships Management Incmanages a fleet of 50 tankers and bulk carriers on behalf ofits Greek principals. These principals have recently enteredthe LNG field by ordering three 160,000m3 dual-fuel dieselelectric-powered (DFDE) LNG carriers at Samsung HeavyIndustries. The new ships will enter the Thenamaris-managedfleet upon delivery in 2013, 2014 and 2015, respectively.

Part of the of the AP Møller-Maersk Group, Svitzer providestowage services at 18 LNG terminals worldwide by means ofa large fleet of custom-built tugs. The company’s LNGterminal service portfolio includes pilotage, vessel escort inthe approach channels, berthing and unberthing, line handlingand safety capabilities such as firefighting and pollutionprevention and control. Tug design and service solutions aretailored to meet the needs of the individual LNG terminal,with due consideration to LNG carrier size, tug bollard pull,ice classification, safety and environmental requirements.Crews are trained at existing LNG terminals and at Svitzer’ssimulator facilities in Denmark.

The amalgamation of the SMIT and Lamnalco terminal tugand anchor handling vessel operations in 2011, following anagreement between Royal Boskalis and Saudi Arabia’s RezayatGroup, established a world class player in the oil and gasterminal services sector. The union was brought about whenSMIT was purchased by Lamnalco, a 50/50 Boskalis/Rezayatoperation. SMIT had been a fully owned subsidiary of Boskalis.

SMIT-Lamnalco operates over 50 terminal contracts,employs more than 2,000 staff on over 150 vessels and isactive in more than 30 countries across five continents. Theprovision of escort tug services at a number of LNG terminals

constitutes a major part of the new, combined company’soperations.

TMS Tankers Ltd of Athens undertakes the technical andcommercial management of George Economou’s tankerfleet. TMS Tankers is also responsible for supervising theconstruction of the fleet’s newbuildings and amongst thecurrent orderbook are four 160,000m3 LNG carriers to bebuilt at Daewoo Shipbuilding & Marine Engineering.

The quartet, contracted by Economou’s Cardiff Marine inJuly 2011, represent the Greek shipowner’s first foray intoLNG ship construction. The vessels, which will be deliveredover the 2013-14 period, will be powered by DFDE propulsionsystems. A few months after ordering the four ships atDaewoo Cardiff Marine purchased the 2004-built, 145,000m3

Muscat LNG from Oman Shipping. The vessel has beenrenamed Fuji LNG.

Apache LNG Pty Ltd is the Perth-based subsidiary ofApache Corporation, one of the world’s leading independentoil and gas exploration and production companies.Involvement with the LNG sector commenced in September2011 when Apache and its partners in the Wheatstone LNGproject in Western Australia agreed to proceed with thescheme’s development.

The two trains at the Wheatstone terminal will have acombined capacity of 8.9 million tonnes of LNG per annum(mta) and production is scheduled to commence in 2016.Apache will supply gas to Wheatstone from its Julimar andBrunello natural gas fields in the Carnarvon Basin. TheWheatstone partners have signed long-term LNG sales andpurchase agreements with Tokyo Electric Power and KyushuElectric Power in Japan.

Apache Corporation is also part of group seeking todevelop Kitimat LNG, a 5 mta LNG export scheme in BritishColumbia, and for this project it is the operator.

SMIT-Lamnalco is amongst the inaugural SIGTTO associate membersfrom the escort tug sector

SIGTTO News Issue 27 7/3/12 13:21 Page 3

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informal discussions with various flag state delegations to tryto reach some consensus on the treatment of steam andDFDE LNG vessels in EEDI. As per the comment above, if suchdiscussions result in a need to change the IMO resolution inany way, it cannot be done until next year.

Two other gas carrier and gas-handling initiatives withwhich SIGTTO has close involvement are currently makingprogress at IMO. The latest status of the revised InternationalGas Carrier (IGC) Code and the new International Code onSafety for Gas-Fuelled Ships (IGF Code) is described on pages9 and 7 in this newsletter.

SIGTTO’s autumn General Purposes Committee (GPC) andPanel Meetings were held in Houston at the end of September2011. We had just short of 200 registered attendees at thePanel Meeting. The main highlight of the Houston Panel wasan afternoon session given over to Sandia National Laboratoriesto report on their large-scale LNG pool fire tests and theeffects of such fires on an LNG carrier.

The Sandia work revealed some interesting insights into thebehaviour of large pool fires, but did not change the overallappreciation of the consequences of severe events. In oneparticular respect, it gave further strong validation to thestudy done by a SIGTTO working group on the sizing of cargotank relief valves in the “Report into the Effects of Fire on LNGContainment Systems” publication produced in 2009.

Another Panel Meeting highlight was a presentation on theexperiences of an LPG ship master on a fully refrigerated LPGcarrier caught in port of Kashima during the terrible Japanesetsunami of March 2011.

In the first two months of this year a flurry of SIGTTORegional Forum meetings were held. The West European/Scandinavian Forum, kindly hosted by BV and attended by 21delegates, took place in Paris. The Mediterranean Forum,with 43 attendees, met in Athens and a special Forummeeting was set up in Brisbane to provide an update on thecoal seam gas-based LNG export projects being developedaround the Gladstone port area. The latter event had 23participants.

I had the opportunity to visit Japan to join in with a Japanesemembers’ meeting in Osaka. This gathering was hosted byKansai Electric Power Co and 36 Japanese members attended.

Also planned, at the time of writing, is a special Forummeeting kindly hosted by the Panama Canal Authority (PCA).Whilst it is a being set up as a Pan-American Regional Forum,the invitation has gone to all members since the impact of theexpanded capacity of the Panama Canal could be significantfor the LNG trade worldwide. When opened in 2014, the new

. . . continued from page 1 Canal locks will be able to accept ships with a breadth of upto 49 metres. This will enable LNG ships of up to about165,000m3 in capacity to transit the Canal.

Regional Forums and Members’ Meetings are an importantpart of the SIGTTO process of engagement between theSecretariat and the broader membership. They serve animportant two-way communications channel, i.e. that ofbriefing members on the activities of the Society and for theSecretariat to hear from the membership about specific issuesthey face or areas where a collective response via SIGTTO isthe best way to resolve an issue.

Just before the meeting in Panama a group of SIGTTOmembers is participating with the PCA in a generic riskanalysis for LNG carriers transiting the Canal. This is seen asan essential precursor to LNG ship transits since, to date, noLNG carrier has transited the existing Panama Canal owing tocurrent breadth limitations.

Most readers will know by now that this will be mypenultimate “Message from the General Manager” as Iintend to step down in November at the Annual GeneralMeeting (AGM) after five and a half years at the helm. Theprocess of identifying and selecting a successor is in hand andthe result will be announced in due course.

UPCOMING MEETINGS

2012 Date LocationWestern Europe Regional Forum 12 Feb Paris

Asia-Pacific Regional Forum 16 Feb Brisbane

Mediterranean Regional Forum 24 Feb Athens

Pan-American Regional Forum 8 Feb Panama

65th General Purposes Committee 26 Mar Doha

57th Panel Meeting 27-28 Mar Doha

Board 31 May Kuala Lumpur

65th General Purposes Committee 11 Oct London

Board and AGM 21 Nov Bermuda

WEBSITE

Individual serviceThe SIGTTO website has been refreshed to make it easier tonavigate and to provide additional functionality. One of thekey changes is an improved search function which makes iteasier to find what you are looking for. This will be particularlyhelpful in the Publications section.

Security has also been changed so that those accessing thesite now have individual log-ins rather than company log-ins.This approach will simplify the control of access to documents.For example, the members of a working group will haveexclusive access to those relevant files without requiringadditional passwords.

Initially new passwords were sent only to the chiefrepresentatives at member companies. If an individual requirestheir own separate log-in, please email the Secretariat withyour request, copying your chief representative at the sametime. SIGTTO will then set you up with a log-in; once loggedin, it is suggested that you change your password to somethingmore memorable. If you forget your password, this can easilybe reset by following the instructions on the website.

Delegates to the February 2012 Japanese members’ meeting gather infront of the tanks at the Sakai LNG terminal

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IGC CODE REVISION

IMO review on trackGood progress is being made with the IMO review of the draftrevised International Gas Carrier (IGC) Code. After a busyweek of ongoing update work the revised Code was approvedby IMO’s Bulk Liquids and Gases Subcommittee at its 16thSession (BLG 16) which was held in London from 30 January

to 3 February 2012. The draft IGC Code now moves onto thenext stage, in which its provisions will be considered by otherIMO subcommittees over the coming year.

The intention is then to collate the feedback from thereviews carried out by the various subcommittees for discussionat BLG 17 early in 2013. Any amendments agreed at thesession will then be incorporated in a final draft of the IGCCode for consideration at the 91st session of the MaritimeSafety Committee (MSC 91), BLG’s parent body, which isscheduled for May 2013. SIGTTO is hoping that the text of therevised Code will be approved at MSC 91 to enable its entryinto force in 2014.

There were serious concerns towards the end of the BLG16 meeting that this anticipated revision timetable might slip.Because technical submissions from three administrationswere not allowed to be considered by the IGC Code draftinggroup, it was thought that the Code and the submissionsmight be sent back to a correspondence group forconsideration, thereby delaying the review process by a year.

In the event, however, a “concerned group of experts”managed to achieve a consensus on the comments containedin the three submissions. The amalgamated viewpoints wereinserted in a paper which was presented at BLG 16’s finalplenary session. There it was agreed to insert the paper intothe draft Code now being sent to other IMO subcommittees.

The BLG 16 work on the draft IGC Code included editorial changes to alignthe text with other relevant international standards

PUBLICATIONS

Loading arm disconnectsA member of the Society approached us last year withinformation on an incident during the disconnection of hardarms with a view to SIGTTO publishing some advice on suchoperations. When the Secretariat discussed the matter, itbecame clear that there were more incidents occurring thanwas commonly known and that there are notable differencesin procedures worldwide.

In collaboration with the members SIGTTO has developeda new document entitled “LNG Transfer Arms and ManifoldDraining, Purging and Disconnection”. The Society believesthat the availability of this document will help to standardiseprocedures amongst the membership. Should you have anyquestions on the content, please contact the Secretariat.

SIGTTO was pleased to note that the preparation of thedocument generated a number of responses, some of whichidentified different disconnect procedures that are used. Itwas discovered that some ship manuals recommend closingdrain and vent valves before disconnection. This procedure isnot recommended.

If there is some residual LNG or a valve leakage when sucha procedure is used, it is possible that there may a pressurebuildup in the space. This, in turn, could cause a rapid releaseof vapour or LNG droplets when disconnecting using quickconnect/disconnect (QC/DC) arrangements. SIGTTO suggeststhat members review their ship operating manuals andprocedures accordingly.

SIGTTO encourages all members to approach the Secretariatin a similar way to the member with the loading arm queryshould they wish attention to be drawn to a specific aspectof gas ship and terminal operations.

SIGTTO has published new guidance on disconnecting loading arms

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IGC CODE REVISION

IMO review on trackGood progress is being made with the IMO review of the draftrevised International Gas Carrier (IGC) Code. After a busyweek of ongoing update work the revised Code was approvedby IMO’s Bulk Liquids and Gases Subcommittee at its 16thSession (BLG 16) which was held in London from 30 January

to 3 February 2012. The draft IGC Code now moves onto thenext stage, in which its provisions will be considered by otherIMO subcommittees over the coming year.

The intention is then to collate the feedback from thereviews carried out by the various subcommittees for discussionat BLG 17 early in 2013. Any amendments agreed at thesession will then be incorporated in a final draft of the IGCCode for consideration at the 91st session of the MaritimeSafety Committee (MSC 91), BLG’s parent body, which isscheduled for May 2013. SIGTTO is hoping that the text of therevised Code will be approved at MSC 91 to enable its entryinto force in 2014.

There were serious concerns towards the end of the BLG16 meeting that this anticipated revision timetable might slip.Because technical submissions from three administrationswere not allowed to be considered by the IGC Code draftinggroup, it was thought that the Code and the submissionsmight be sent back to a correspondence group forconsideration, thereby delaying the review process by a year.

In the event, however, a “concerned group of experts”managed to achieve a consensus on the comments containedin the three submissions. The amalgamated viewpoints wereinserted in a paper which was presented at BLG 16’s finalplenary session. There it was agreed to insert the paper intothe draft Code now being sent to other IMO subcommittees.

The BLG 16 work on the draft IGC Code included editorial changes to alignthe text with other relevant international standards

PUBLICATIONS

Loading arm disconnectsA member of the Society approached us last year withinformation on an incident during the disconnection of hardarms with a view to SIGTTO publishing some advice on suchoperations. When the Secretariat discussed the matter, itbecame clear that there were more incidents occurring thanwas commonly known and that there are notable differencesin procedures worldwide.

In collaboration with the members SIGTTO has developeda new document entitled “LNG Transfer Arms and ManifoldDraining, Purging and Disconnection”. The Society believesthat the availability of this document will help to standardiseprocedures amongst the membership. Should you have anyquestions on the content, please contact the Secretariat.

SIGTTO was pleased to note that the preparation of thedocument generated a number of responses, some of whichidentified different disconnect procedures that are used. Itwas discovered that some ship manuals recommend closingdrain and vent valves before disconnection. This procedure isnot recommended.

If there is some residual LNG or a valve leakage when sucha procedure is used, it is possible that there may a pressurebuildup in the space. This, in turn, could cause a rapid releaseof vapour or LNG droplets when disconnecting using quickconnect/disconnect (QC/DC) arrangements. SIGTTO suggeststhat members review their ship operating manuals andprocedures accordingly.

SIGTTO encourages all members to approach the Secretariatin a similar way to the member with the loading arm queryshould they wish attention to be drawn to a specific aspectof gas ship and terminal operations.

SIGTTO has published new guidance on disconnecting loading arms

SIGTTO News Issue 27 7/3/12 13:21 Page 7

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NEW CONVENTIONS (1)

Ballast water - thepressure is onDespite the slow progress in ratifying the new regimedeveloped to control the bio-ecological threat to the marineenvironment caused by invasive alien species in ships’ ballast,shipowners are under increasing pressure to comply with theagreed requirements. Acceptance of the regime by someleading maritime nations and the unilateral adoption ofballast water regulations in other countries are rapidly reducingthe amount of time the shipping community has available forembracing the complex operational and documentaryprocedures and the novel treatment systems that called for.

The International Convention for the Control andManagement of Ships’ Ballast Water and Sediments (theBWM Convention) was adopted by IMO in 2004 and is dueto enter into force one year after it has been ratified by 30member states comprising 35 per cent of the world tonnage.The considerable technical challenges inherent in developinga suitable framework and implementing the BWM Convention

have translated into slow progress on the ratification front.As of 1 February 2012 some 33 countries representing justover 26 per cent of the world’s tonnage had done so.

Recognising that ships differ in type, size and configuration,the BWM Convention initially allows for two standards ofballast water management - the Ballast Water ExchangeStandard (BWE) - which is only acceptable until January 2014or 2016, depending on the ship’s ballast capacity - and theBallast Water Performance Standard (BWP) where ballastwater must be treated prior to discharge.

The greatest of the BWM challenges facing a shipowner isthe choice of the most appropriate ballast water treatment(BWT) system for a particular vessel. The decision is not madeany easier by the fact that BWT technologies are at a relativelyearly stage of development, the equipment is expensive andquestion marks remain over the ability of available systems toachieve the necessary performance standard when specifiedfor larger ships with ballast capacities over 5,000m3. Theimpact of the BWT system on other ship systems andperformance monitoring also need to be borne in mind.

Apart from the choice of BWT equipment, there areconsiderations of developing a ballast water managementplan; maintaining associated documentation; organisingshipyard retrofit timetables; inspection and certification; thetraining of crew, staff and regulatory personnel; the possibilityof sanctions; and understanding the 14 sets of guidelinesdeveloped by IMO to back up implementation of the regime.

One of the sets of IMO guidelines - that on ballast watersampling and analysis - is still at the draft stage and reaching

It will be necessary to consider the impact of the the chosen ballast watertreatment technology on other ship systems

NEW CONVENTIONS (2)

Level seafarer playing fieldThe Maritime Labour Convention (MLC) 2006 is expected toenter into force by summer 2013 and flag administrationsand shipping associations are issuing guidance to assistshipowners and managers in implementing the new regime.Impacting 1.2 million seafarers worldwide and all shipstrading internationally, MLC 2006 is set to replace 40 existingconventions and 29 regulations.

The wide coverage of the International LabourOrganisation’s (ILO) new convention encompasses workinghours, seafarers’ contractual arrangements, responsibilitiesof manning agencies, health and safety, medical and cateringstandards and crew accommodation. MLC 2006 will besubject to port state control as well as flag state inspection.

An important aspect of the convention’s enforcement willbe the issuance by flag administrations of Maritime LabourCertificates, usually following inspection by a recognisedorganisation such as a class society, and a separate requirementfor ships to maintain a Declaration of Maritime LabourCompliance.

Flag administrations are advising shipping companies todevelop the appropriate documentation and procedures todemonstrate compliance with MLC 2006 and to apply for aship inspection once the documentation is ready. Once a shipinspection has been satisfactorily completed, the flagadministration will issue an MLC Statement of Compliance.Upon ratification of MLC 2006 this Statement of Compliancemay be exchanged for an MLC Certificate.

One of the challenges in implementing the new seafarerlabour regime has been to align the MLC working hour

requirements with those of IMO’s Standards of TrainingCertification and Watchkeeping (STCW) Convention. Thishas been achieved through the adoption of amendments toSTCW which were finalised in Manila in June 2010 and whichentered into force on 1 January 2012.

MLC 2006 will enter into force one year after 30 countrieswith a minimum of 33 per cent of the world’s tonnage haveratified it. As of February 2012 a total of 22 countriesrepresenting 56 per cent of world tonnage had signed theconvention. The pace of ratification is accelerating and it isexpected that the final eight signatures will be obtained in thenext few months, enabling entry into force by summer 2013.

MLC 2006 has been designed as the ‘fourth pillar’ of the internationalregulatory regime governing quality shipping

agreement on its provisions has proved controversial.Following shipowner intervention, the draft guidelines willnow be reconsidered by IMO and will not be ready until 2013at the earliest.

An estimated 57,000 ships, representing a market worthUS$34 billion, will be impacted by the BWM Convention.

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TERMINAL OPERATIONS

Preparing an LNG import terminal for re-exportsA number of technical considerations have to be taken into account when adapting anLNG receiving terminal to be able to load cargoesThe relatively recent change in the US LNG trade, associatedwith the unprecedented development of domesticunconventional gas, has caused US import terminal operatorsto seek new business opportunities for their currentlyunderutilised terminals. The business for which an importterminal may be most readily adapted is that of temporarilystoring imported LNG for later export when market arbitrageopportunities present themselves. However simple this mayappear, there are a number of issues to be considered if theterminal’s proposed loading operation is going to complywith the best practices for handling LNG.

The recent adaptation of an import terminal on the US GulfCoast to the additional function of storing and backloadingLNG provides an insight into the issues that should beaddressed in undertaking the operational change. Followingthe regulatory agency permitting to adapt the terminal forthis additional function, the issues to be considered includethe following.

Cargo armsIf the revised business plan is to retain the terminal’s importcapability, as opposed to a complete conversion to an exportterminal, then the cargo arm(s) to be used for loading mustbe designated and adapted by either reversing the non-returnvalve at the base of the cargo arm or by replacing the originalnon-return valve with a defeatable non-return valve.Depending on the LNG loading rate envisaged for the terminal,it may be found that changing the non-return valve(s) at thecargo arm(s) may be necessary only on one arm.

Planned loading rate/shore tank LNG pumpsThe LNG transfer pumps installed in the shore tanks of apurpose-built receiving terminal are sized to match thevolume of LNG that must be transferred to the terminal’svaporisers to satisfy the natural gas sendout specification ofthe terminal. Experience has shown that five of the total of sixLNG transfer pumps installed in the two tanks of a terminalbuilt for a peak natural gas sendout capability of 2.0 billioncubic feet per day (bcf/d) can together transfer approximately4,000m3 of LNG per hour. As an hourly loading rate, thisvolume can be safely transferred to a ship through one 16-inch cargo arm, thus requiring the modification of the non-

return valve at only one arm. Should the proposed loadingrate be typical of a purpose-built LNG export facility, then theshore tank transfer pumps must be upgraded to produce therequired transfer rate and the non-return valves at the cargoarms required to handle that rate must be modified.

Surge pressure analysis on the terminal dock transfer lineThe engineering design of the LNG transfer line between theterminal’s dock and shore tanks takes into account surgepressures generated in the line by an emergency shutdown1 (ESD-1) event. For a receiving terminal this analysis istypically performed utilising the terminal’s designed liquidflow direction and rate. In adapting the terminal for loading,the engineering department must analyse and determinethat, at the proposed loading rate in that flow direction, anexcessive surge pressure will not be generated in the line atan ESD-1 event.

Cargo transfer ESD-1 functions (LNG pumps)At a purpose-built loading terminal, if a high-high level alarmin any of the cargo tanks of a ship being loaded is activated,the ESD-1 signal generated by the ship’s system will stop theLNG transfer pumps in the shore tanks. Conversely, at apurpose-built receiving terminal, if the high-high level alarmin a shore tank is activated, the ESD-1 signal generated by theterminal’s system will stop the cargo pumps of a ship that isdischarging into that tank.

The control system in the purpose-built receiving terminalis not configured for the shore tank transfer pumps to receivea shutdown signal from the ship. The system is configured forthe transfer pumps to receive shutdown signals from thevarious downstream pieces of equipment, such as LNGvaporisers and gas sendout compressors, but not from shipsat the berth.

Therefore, in adapting the receiving terminal to be able tosafely load ships, the logic of the terminal’s LNG flow controlsystem must be able to be switched from the receiving modeto the ship loading mode, in which mode the shore tanktransfer pumps will shut down if they receive a ship’s cargotank high-high level signal or any other ESD-1 signal fromeither the ship or from the terminal’s own system.

Cargo transfer ESD-1 functions (terminal ESD-1 valves)The recommended closing time for the ESD-1 valves atreceiving terminals is between 30 and 60 seconds. However,the recommended closing time for those same valves atloading terminals is between 10 and 15 seconds (see SIGTTOpublication “ESD Arrangements & Linked Ship/Shore Systemsfor Liquefied Gas Carriers”, Edition 2009, Section 2.2).

Therefore, in adapting the receiving terminal to be able tosafely load ships, the closing time of the ESD-1 valves must beable to be switched between the two different recommendedclosing times and set as appropriate for the particular operationto be performed.

Return vapour handlingReceiving terminals must deliver return gas to ships dischargingat their dock(s) and, consequently, receiving terminals areequipped with gas blowers capable of delivering the returngas to the discharging ship. Conversely, a ship that is loadingmust send its return gas to some destination in the terminal.

An operator adapting an LNG receiving terminal for re-exports mustconsider, amongst a range of issues, the ship’s ability to return cargovapours ashore

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To provide an adequate supply of gas to the dischargingship, the capability of a receiving terminal’s return gas blowerwill be engineered for the length, configuration, diameter,etc of the terminal’s return gas line. Until the time when airpollution emissions came under great scrutiny by nationaland international regulatory agencies, loading terminals hadbeen equipped with marine flares located relatively close tothe terminal’s dock. The capability of the gas compressorsinstalled on LNG ships was thus geared to the ship having todrive the return gas only as far as the marine flare.

However, receiving terminals are not equipped with marineflares. They are built with process flares that are generallylocated closer to the vaporising and gas sendout equipment

sections of the terminal. Such sections of the terminal aretypically a considerable distance from the dock.

At the particular US Gulf Coast receiving terminal that hasundertaken the added functions of storing and backloadingof cargoes, it has been found that the typical LNG ship’scompressors are unable to generate the required gas deliverypressure sufficient to deliver the return gas either to theterminal’s process flare or to the terminal’s gas compressionstation for further processing.

Consequently, return gas handling during loadingoperations at a purpose-built receiving terminal is problematic.Solutions may include the installation of a suitably configuredcompressor at the dock to boost the pressure of the ship’sreturn gas or the installation of a marine flare, shouldradiation heat zones around its proposed location and theterminal’s air emission allowances permit it.

Shore tank boil-off gas (BOG)In catering to the customer base for the storage andbackloading of cargoes, consideration must be given to thedaily inventory loss due to boil-off while the cargo is beingstored. Possible solutions to inventory loss through boil-offinclude a small re-liquefaction plant to capture the daily boil-off, re-liquefy it and return it to the tanks, or a commercialarrangement with the cargo owner to send out the daily boil-off gas to the natural gas pipeline grid.

In either case the terminal operator must also be aware ofthe weathering of the LNG due to the daily boil-off and musttake provisions to prevent rollover when the material weathersor when additional material is added to LNG that has beenstored for a considerable time in the terminal’s tanks.

ConclusionThe experience of having adapted a purpose-built LNGreceiving terminal to the added function of storage and shiploading clearly indicates that such an adaptation is feasible.However, if the adaptation is to be successful, all of the aboveissues must be included in the list of those which must beaddressed by the terminal’s operators.

IGF CODE

Gas-fuelled ship progress As part of development work on the new International Codeon Safety for Gas-Fuelled Ships (IGF Code), SIGTTO submitteda paper to the 16th Session of IMO’s Bulk Liquids and GasesSubcommittee (BLG 16) raising concerns with regard to theconcept of emergency shutdown (ESD)-protected machineryspace and the location of bunker tanks under accommodationspaces. BLG 16 was held in London during the week of 30January - 3 February 2012.

Following discussions on the paper at the BLG 16 plenarysession, it was decided that the ESD machinery space provisionswill be part of the IGF Code and that the technical aspectsshould be considered by the IGF working group. As regardsbunker tank location, BLG 16 decided that, as this is a newcode, there needs to be some flexibility and, therefore,bunker tanks under the accommodation spaces should notbe prohibited. There remains concern about this issue.

Progress by the IGF working group during BLG 16 includeda review of the later chapters of the Code and, as a result ofthis work, the group identified a number of areas where

An LNG bunker tank on a Norwegian cross-fjord ferry

Attention will have to be given to the non-return valves on those cargoarms designated for reloading LNG

additional input is required from other IMO subcommittees.The Standards of Training and Watchkeeping (STW)Subcommittee has been asked whether the trainingrequirements for gas and chemical tankers are suitable forofficers and crew serving on ships fuelled by gas or low-flashpoint fuels or whether specific training is required.

The IMO Subcommittee on Stability and Load Lines and onFishing Vessels Safety (SLF) has been requested to considerthe proposal made by Germany on the distance from the shipside of bunker tanks while the Ship Design and Equipment(DE) Subcommittee has been asked to consider lifesavingappliances.

The IGF working group also discussed the installation ofgas detectors in the inlets to accommodation and machineryspaces in order to cover situations involving an escape of gas,such as during bunkering operations. Although the majorityof the group favoured this approach, a small minority objectedon the grounds that the detectors were unreliable and falsealarms would reduce crew confidence. During the BLG 16plenary session SIGTTO pointed out that these allegedlyunreliable detectors were also being used as the primarymeans of detection for the machinery space ESD shutdown.

The IGF correspondence group has been re-established tocontinue work on the draft IGF Code prior to the BLG 17meeting next year. Copies of the draft are available from theSIGTTO Secretariat. Andy Alderson continues to representSIGTTO on the correspondence group and is happy to becontacted should anyone have any questions.

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NEW CONVENTIONS (1)

Ballast water - thepressure is onDespite the slow progress in ratifying the new regimedeveloped to control the bio-ecological threat to the marineenvironment caused by invasive alien species in ships’ ballast,shipowners are under increasing pressure to comply with theagreed requirements. Acceptance of the regime by someleading maritime nations and the unilateral adoption ofballast water regulations in other countries are rapidly reducingthe amount of time the shipping community has available forembracing the complex operational and documentaryprocedures and the novel treatment systems that called for.

The International Convention for the Control andManagement of Ships’ Ballast Water and Sediments (theBWM Convention) was adopted by IMO in 2004 and is dueto enter into force one year after it has been ratified by 30member states comprising 35 per cent of the world tonnage.The considerable technical challenges inherent in developinga suitable framework and implementing the BWM Convention

have translated into slow progress on the ratification front.As of 1 February 2012 some 33 countries representing justover 26 per cent of the world’s tonnage had done so.

Recognising that ships differ in type, size and configuration,the BWM Convention initially allows for two standards ofballast water management - the Ballast Water ExchangeStandard (BWE) - which is only acceptable until January 2014or 2016, depending on the ship’s ballast capacity - and theBallast Water Performance Standard (BWP) where ballastwater must be treated prior to discharge.

The greatest of the BWM challenges facing a shipowner isthe choice of the most appropriate ballast water treatment(BWT) system for a particular vessel. The decision is not madeany easier by the fact that BWT technologies are at a relativelyearly stage of development, the equipment is expensive andquestion marks remain over the ability of available systems toachieve the necessary performance standard when specifiedfor larger ships with ballast capacities over 5,000m3. Theimpact of the BWT system on other ship systems andperformance monitoring also need to be borne in mind.

Apart from the choice of BWT equipment, there areconsiderations of developing a ballast water managementplan; maintaining associated documentation; organisingshipyard retrofit timetables; inspection and certification; thetraining of crew, staff and regulatory personnel; the possibilityof sanctions; and understanding the 14 sets of guidelinesdeveloped by IMO to back up implementation of the regime.

One of the sets of IMO guidelines - that on ballast watersampling and analysis - is still at the draft stage and reaching

It will be necessary to consider the impact of the the chosen ballast watertreatment technology on other ship systems

NEW CONVENTIONS (2)

Level seafarer playing fieldThe Maritime Labour Convention (MLC) 2006 is expected toenter into force by summer 2013 and flag administrationsand shipping associations are issuing guidance to assistshipowners and managers in implementing the new regime.Impacting 1.2 million seafarers worldwide and all shipstrading internationally, MLC 2006 is set to replace 40 existingconventions and 29 regulations.

The wide coverage of the International LabourOrganisation’s (ILO) new convention encompasses workinghours, seafarers’ contractual arrangements, responsibilitiesof manning agencies, health and safety, medical and cateringstandards and crew accommodation. MLC 2006 will besubject to port state control as well as flag state inspection.

An important aspect of the convention’s enforcement willbe the issuance by flag administrations of Maritime LabourCertificates, usually following inspection by a recognisedorganisation such as a class society, and a separate requirementfor ships to maintain a Declaration of Maritime LabourCompliance.

Flag administrations are advising shipping companies todevelop the appropriate documentation and procedures todemonstrate compliance with MLC 2006 and to apply for aship inspection once the documentation is ready. Once a shipinspection has been satisfactorily completed, the flagadministration will issue an MLC Statement of Compliance.Upon ratification of MLC 2006 this Statement of Compliancemay be exchanged for an MLC Certificate.

One of the challenges in implementing the new seafarerlabour regime has been to align the MLC working hour

requirements with those of IMO’s Standards of TrainingCertification and Watchkeeping (STCW) Convention. Thishas been achieved through the adoption of amendments toSTCW which were finalised in Manila in June 2010 and whichentered into force on 1 January 2012.

MLC 2006 will enter into force one year after 30 countrieswith a minimum of 33 per cent of the world’s tonnage haveratified it. As of February 2012 a total of 22 countriesrepresenting 56 per cent of world tonnage had signed theconvention. The pace of ratification is accelerating and it isexpected that the final eight signatures will be obtained in thenext few months, enabling entry into force by summer 2013.

MLC 2006 has been designed as the ‘fourth pillar’ of the internationalregulatory regime governing quality shipping

agreement on its provisions has proved controversial.Following shipowner intervention, the draft guidelines willnow be reconsidered by IMO and will not be ready until 2013at the earliest.

An estimated 57,000 ships, representing a market worthUS$34 billion, will be impacted by the BWM Convention.

8

CryoStarad

Wavespecad

SIGTTO News Issue 27 7/3/12 13:21 Page 9

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SNRIad

9

Videotelad

IGC CODE REVISION

IMO review on trackGood progress is being made with the IMO review of the draftrevised International Gas Carrier (IGC) Code. After a busyweek of ongoing update work the revised Code was approvedby IMO’s Bulk Liquids and Gases Subcommittee at its 16thSession (BLG 16) which was held in London from 30 January

to 3 February 2012. The draft IGC Code now moves onto thenext stage, in which its provisions will be considered by otherIMO subcommittees over the coming year.

The intention is then to collate the feedback from thereviews carried out by the various subcommittees for discussionat BLG 17 early in 2013. Any amendments agreed at thesession will then be incorporated in a final draft of the IGCCode for consideration at the 91st session of the MaritimeSafety Committee (MSC 91), BLG’s parent body, which isscheduled for May 2013. SIGTTO is hoping that the text of therevised Code will be approved at MSC 91 to enable its entryinto force in 2014.

There were serious concerns towards the end of the BLG16 meeting that this anticipated revision timetable might slip.Because technical submissions from three administrationswere not allowed to be considered by the IGC Code draftinggroup, it was thought that the Code and the submissionsmight be sent back to a correspondence group forconsideration, thereby delaying the review process by a year.

In the event, however, a “concerned group of experts”managed to achieve a consensus on the comments containedin the three submissions. The amalgamated viewpoints wereinserted in a paper which was presented at BLG 16’s finalplenary session. There it was agreed to insert the paper intothe draft Code now being sent to other IMO subcommittees.

The BLG 16 work on the draft IGC Code included editorial changes to alignthe text with other relevant international standards

PUBLICATIONS

Loading arm disconnectsA member of the Society approached us last year withinformation on an incident during the disconnection of hardarms with a view to SIGTTO publishing some advice on suchoperations. When the Secretariat discussed the matter, itbecame clear that there were more incidents occurring thanwas commonly known and that there are notable differencesin procedures worldwide.

In collaboration with the members SIGTTO has developeda new document entitled “LNG Transfer Arms and ManifoldDraining, Purging and Disconnection”. The Society believesthat the availability of this document will help to standardiseprocedures amongst the membership. Should you have anyquestions on the content, please contact the Secretariat.

SIGTTO was pleased to note that the preparation of thedocument generated a number of responses, some of whichidentified different disconnect procedures that are used. Itwas discovered that some ship manuals recommend closingdrain and vent valves before disconnection. This procedure isnot recommended.

If there is some residual LNG or a valve leakage when sucha procedure is used, it is possible that there may a pressurebuildup in the space. This, in turn, could cause a rapid releaseof vapour or LNG droplets when disconnecting using quickconnect/disconnect (QC/DC) arrangements. SIGTTO suggeststhat members review their ship operating manuals andprocedures accordingly.

SIGTTO encourages all members to approach the Secretariatin a similar way to the member with the loading arm queryshould they wish attention to be drawn to a specific aspectof gas ship and terminal operations.

SIGTTO has published new guidance on disconnecting loading arms

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9

Videotelad

IGC CODE REVISION

IMO review on trackGood progress is being made with the IMO review of the draftrevised International Gas Carrier (IGC) Code. After a busyweek of ongoing update work the revised Code was approvedby IMO’s Bulk Liquids and Gases Subcommittee at its 16thSession (BLG 16) which was held in London from 30 January

to 3 February 2012. The draft IGC Code now moves onto thenext stage, in which its provisions will be considered by otherIMO subcommittees over the coming year.

The intention is then to collate the feedback from thereviews carried out by the various subcommittees for discussionat BLG 17 early in 2013. Any amendments agreed at thesession will then be incorporated in a final draft of the IGCCode for consideration at the 91st session of the MaritimeSafety Committee (MSC 91), BLG’s parent body, which isscheduled for May 2013. SIGTTO is hoping that the text of therevised Code will be approved at MSC 91 to enable its entryinto force in 2014.

There were serious concerns towards the end of the BLG16 meeting that this anticipated revision timetable might slip.Because technical submissions from three administrationswere not allowed to be considered by the IGC Code draftinggroup, it was thought that the Code and the submissionsmight be sent back to a correspondence group forconsideration, thereby delaying the review process by a year.

In the event, however, a “concerned group of experts”managed to achieve a consensus on the comments containedin the three submissions. The amalgamated viewpoints wereinserted in a paper which was presented at BLG 16’s finalplenary session. There it was agreed to insert the paper intothe draft Code now being sent to other IMO subcommittees.

The BLG 16 work on the draft IGC Code included editorial changes to alignthe text with other relevant international standards

PUBLICATIONS

Loading arm disconnectsA member of the Society approached us last year withinformation on an incident during the disconnection of hardarms with a view to SIGTTO publishing some advice on suchoperations. When the Secretariat discussed the matter, itbecame clear that there were more incidents occurring thanwas commonly known and that there are notable differencesin procedures worldwide.

In collaboration with the members SIGTTO has developeda new document entitled “LNG Transfer Arms and ManifoldDraining, Purging and Disconnection”. The Society believesthat the availability of this document will help to standardiseprocedures amongst the membership. Should you have anyquestions on the content, please contact the Secretariat.

SIGTTO was pleased to note that the preparation of thedocument generated a number of responses, some of whichidentified different disconnect procedures that are used. Itwas discovered that some ship manuals recommend closingdrain and vent valves before disconnection. This procedure isnot recommended.

If there is some residual LNG or a valve leakage when sucha procedure is used, it is possible that there may a pressurebuildup in the space. This, in turn, could cause a rapid releaseof vapour or LNG droplets when disconnecting using quickconnect/disconnect (QC/DC) arrangements. SIGTTO suggeststhat members review their ship operating manuals andprocedures accordingly.

SIGTTO encourages all members to approach the Secretariatin a similar way to the member with the loading arm queryshould they wish attention to be drawn to a specific aspectof gas ship and terminal operations.

SIGTTO has published new guidance on disconnecting loading arms

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informal discussions with various flag state delegations to tryto reach some consensus on the treatment of steam andDFDE LNG vessels in EEDI. As per the comment above, if suchdiscussions result in a need to change the IMO resolution inany way, it cannot be done until next year.

Two other gas carrier and gas-handling initiatives withwhich SIGTTO has close involvement are currently makingprogress at IMO. The latest status of the revised InternationalGas Carrier (IGC) Code and the new International Code onSafety for Gas-Fuelled Ships (IGF Code) is described on pages9 and 7 in this newsletter.

SIGTTO’s autumn General Purposes Committee (GPC) andPanel Meetings were held in Houston at the end of September2011. We had just short of 200 registered attendees at thePanel Meeting. The main highlight of the Houston Panel wasan afternoon session given over to Sandia National Laboratoriesto report on their large-scale LNG pool fire tests and theeffects of such fires on an LNG carrier.

The Sandia work revealed some interesting insights into thebehaviour of large pool fires, but did not change the overallappreciation of the consequences of severe events. In oneparticular respect, it gave further strong validation to thestudy done by a SIGTTO working group on the sizing of cargotank relief valves in the “Report into the Effects of Fire on LNGContainment Systems” publication produced in 2009.

Another Panel Meeting highlight was a presentation on theexperiences of an LPG ship master on a fully refrigerated LPGcarrier caught in port of Kashima during the terrible Japanesetsunami of March 2011.

In the first two months of this year a flurry of SIGTTORegional Forum meetings were held. The West European/Scandinavian Forum, kindly hosted by BV and attended by 21delegates, took place in Paris. The Mediterranean Forum,with 43 attendees, met in Athens and a special Forummeeting was set up in Brisbane to provide an update on thecoal seam gas-based LNG export projects being developedaround the Gladstone port area. The latter event had 23participants.

I had the opportunity to visit Japan to join in with a Japanesemembers’ meeting in Osaka. This gathering was hosted byKansai Electric Power Co and 36 Japanese members attended.

Also planned, at the time of writing, is a special Forummeeting kindly hosted by the Panama Canal Authority (PCA).Whilst it is a being set up as a Pan-American Regional Forum,the invitation has gone to all members since the impact of theexpanded capacity of the Panama Canal could be significantfor the LNG trade worldwide. When opened in 2014, the new

. . . continued from page 1 Canal locks will be able to accept ships with a breadth of upto 49 metres. This will enable LNG ships of up to about165,000m3 in capacity to transit the Canal.

Regional Forums and Members’ Meetings are an importantpart of the SIGTTO process of engagement between theSecretariat and the broader membership. They serve animportant two-way communications channel, i.e. that ofbriefing members on the activities of the Society and for theSecretariat to hear from the membership about specific issuesthey face or areas where a collective response via SIGTTO isthe best way to resolve an issue.

Just before the meeting in Panama a group of SIGTTOmembers is participating with the PCA in a generic riskanalysis for LNG carriers transiting the Canal. This is seen asan essential precursor to LNG ship transits since, to date, noLNG carrier has transited the existing Panama Canal owing tocurrent breadth limitations.

Most readers will know by now that this will be mypenultimate “Message from the General Manager” as Iintend to step down in November at the Annual GeneralMeeting (AGM) after five and a half years at the helm. Theprocess of identifying and selecting a successor is in hand andthe result will be announced in due course.

UPCOMING MEETINGS

2012 Date LocationWestern Europe Regional Forum 12 Feb Paris

Asia-Pacific Regional Forum 16 Feb Brisbane

Mediterranean Regional Forum 24 Feb Athens

Pan-American Regional Forum 8 Feb Panama

65th General Purposes Committee 26 Mar Doha

57th Panel Meeting 27-28 Mar Doha

Board 31 May Kuala Lumpur

65th General Purposes Committee 11 Oct London

Board and AGM 21 Nov Bermuda

WEBSITE

Individual serviceThe SIGTTO website has been refreshed to make it easier tonavigate and to provide additional functionality. One of thekey changes is an improved search function which makes iteasier to find what you are looking for. This will be particularlyhelpful in the Publications section.

Security has also been changed so that those accessing thesite now have individual log-ins rather than company log-ins.This approach will simplify the control of access to documents.For example, the members of a working group will haveexclusive access to those relevant files without requiringadditional passwords.

Initially new passwords were sent only to the chiefrepresentatives at member companies. If an individual requirestheir own separate log-in, please email the Secretariat withyour request, copying your chief representative at the sametime. SIGTTO will then set you up with a log-in; once loggedin, it is suggested that you change your password to somethingmore memorable. If you forget your password, this can easilybe reset by following the instructions on the website.

Delegates to the February 2012 Japanese members’ meeting gather infront of the tanks at the Sakai LNG terminal

10

Lamnalcoad

HUMAN FACTORS

Seafarer surveyAt its September 2011 meeting in Houston the SIGTTOGeneral Purposes Committee (GPC) agreed to set up aHuman Factors and Training working group under thechairmanship of Marc Hopkins. The first task of the workinggroup was to develop a terms of reference for considerationby the GPC at its upcoming Doha meeting on 26 March.

The working group recognised that there are a significantnumber of publications dealing with human factors in thecontext of shipping operations and that they should focus onareas that would benefit the gas shipping industry. In orderto help identify such areas Mark Charman offered to managea survey of seafarers and shore staff. The working group thenmet and developed 21 questions; whilst these were phrasedslightly differently for staff at sea and ashore, they askedcomparable questions.

The survey was conducted through a website by means ofan electronic questionnaire. As none of the documents askedfor any identifying details, it is not possible to attribute anyresponse to a company, ship or an individual. Members of theworking group sent invitations to participate to those involvedin vessel operations. As a number of the companies contactedalso had other vessel types, it was decided to include these inorder to determine whether there were significant differencesbetween sectors of the shipping industry.

While experience of prior surveys suggested that less than500 responses would be received, SIGTTO is pleased to reportthat over 1,500 responses were sent in, of which approximatelyone-third were from shore staff. Almost half the responseswere from the LNG sector and over one-third from the oil

tanker sector; responses from those involved principally inLPG operations was under 6 per cent.

For a number of questions there were notable differencesbetween the responses from ship and shore staff. These arebeing investigated further and will form part of a presentationby Mark Charman at the upcoming SIGTTO Panel Meeting inDoha.

The working group has reviewed the results of the surveyand prepared terms of reference for submission to the GPCin March 2012. Details of the survey results can be madeavailable upon request.

Most seafarers find hands-on training and simulators offer the best routeto skill enhancement

3

informal discussions with various flag state delegations to tryto reach some consensus on the treatment of steam andDFDE LNG vessels in EEDI. As per the comment above, if suchdiscussions result in a need to change the IMO resolution inany way, it cannot be done until next year.

Two other gas carrier and gas-handling initiatives withwhich SIGTTO has close involvement are currently makingprogress at IMO. The latest status of the revised InternationalGas Carrier (IGC) Code and the new International Code onSafety for Gas-Fuelled Ships (IGF Code) is described on pages9 and 7 in this newsletter.

SIGTTO’s autumn General Purposes Committee (GPC) andPanel Meetings were held in Houston at the end of September2011. We had just short of 200 registered attendees at thePanel Meeting. The main highlight of the Houston Panel wasan afternoon session given over to Sandia National Laboratoriesto report on their large-scale LNG pool fire tests and theeffects of such fires on an LNG carrier.

The Sandia work revealed some interesting insights into thebehaviour of large pool fires, but did not change the overallappreciation of the consequences of severe events. In oneparticular respect, it gave further strong validation to thestudy done by a SIGTTO working group on the sizing of cargotank relief valves in the “Report into the Effects of Fire on LNGContainment Systems” publication produced in 2009.

Another Panel Meeting highlight was a presentation on theexperiences of an LPG ship master on a fully refrigerated LPGcarrier caught in port of Kashima during the terrible Japanesetsunami of March 2011.

In the first two months of this year a flurry of SIGTTORegional Forum meetings were held. The West European/Scandinavian Forum, kindly hosted by BV and attended by 21delegates, took place in Paris. The Mediterranean Forum,with 43 attendees, met in Athens and a special Forummeeting was set up in Brisbane to provide an update on thecoal seam gas-based LNG export projects being developedaround the Gladstone port area. The latter event had 23participants.

I had the opportunity to visit Japan to join in with a Japanesemembers’ meeting in Osaka. This gathering was hosted byKansai Electric Power Co and 36 Japanese members attended.

Also planned, at the time of writing, is a special Forummeeting kindly hosted by the Panama Canal Authority (PCA).Whilst it is a being set up as a Pan-American Regional Forum,the invitation has gone to all members since the impact of theexpanded capacity of the Panama Canal could be significantfor the LNG trade worldwide. When opened in 2014, the new

. . . continued from page 1 Canal locks will be able to accept ships with a breadth of upto 49 metres. This will enable LNG ships of up to about165,000m3 in capacity to transit the Canal.

Regional Forums and Members’ Meetings are an importantpart of the SIGTTO process of engagement between theSecretariat and the broader membership. They serve animportant two-way communications channel, i.e. that ofbriefing members on the activities of the Society and for theSecretariat to hear from the membership about specific issuesthey face or areas where a collective response via SIGTTO isthe best way to resolve an issue.

Just before the meeting in Panama a group of SIGTTOmembers is participating with the PCA in a generic riskanalysis for LNG carriers transiting the Canal. This is seen asan essential precursor to LNG ship transits since, to date, noLNG carrier has transited the existing Panama Canal owing tocurrent breadth limitations.

Most readers will know by now that this will be mypenultimate “Message from the General Manager” as Iintend to step down in November at the Annual GeneralMeeting (AGM) after five and a half years at the helm. Theprocess of identifying and selecting a successor is in hand andthe result will be announced in due course.

UPCOMING MEETINGS

2012 Date LocationWestern Europe Regional Forum 12 Feb Paris

Asia-Pacific Regional Forum 16 Feb Brisbane

Mediterranean Regional Forum 24 Feb Athens

Pan-American Regional Forum 8 Feb Panama

65th General Purposes Committee 26 Mar Doha

57th Panel Meeting 27-28 Mar Doha

Board 31 May Kuala Lumpur

65th General Purposes Committee 11 Oct London

Board and AGM 21 Nov Bermuda

WEBSITE

Individual serviceThe SIGTTO website has been refreshed to make it easier tonavigate and to provide additional functionality. One of thekey changes is an improved search function which makes iteasier to find what you are looking for. This will be particularlyhelpful in the Publications section.

Security has also been changed so that those accessing thesite now have individual log-ins rather than company log-ins.This approach will simplify the control of access to documents.For example, the members of a working group will haveexclusive access to those relevant files without requiringadditional passwords.

Initially new passwords were sent only to the chiefrepresentatives at member companies. If an individual requirestheir own separate log-in, please email the Secretariat withyour request, copying your chief representative at the sametime. SIGTTO will then set you up with a log-in; once loggedin, it is suggested that you change your password to somethingmore memorable. If you forget your password, this can easilybe reset by following the instructions on the website.

Delegates to the February 2012 Japanese members’ meeting gather infront of the tanks at the Sakai LNG terminal

SIGTTO News Issue 27 7/3/12 13:21 Page 5

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NEW MEMBERS

Quintet welcomedThree companies have joined SIGTTO as full members sincethe last Newsletter was published, while another two havejoined as associate members. The two associate members -SMIT-Lamnalco and Svitzer - are both tug companies. At thelatest SIGTTO Board meeting it was agreed that associatemembership could be extended to providers of specialistescort and harbour tug services at LNG terminals.

The listing of the five companies below shows their date ofjoining the Society. The SIGTTO membership now stands at127 full members, 61 associate members and 20 non-contributory members.

Thenamaris Ships Management 1 Sep2011Svitzer 1 Jan 2012SMIT-Lamnalco 1 Jan 2012TMS Tankers 1 Jan 2012Apache LNG 1 Feb 2012

Athens-based Thenamaris Ships Management Incmanages a fleet of 50 tankers and bulk carriers on behalf ofits Greek principals. These principals have recently enteredthe LNG field by ordering three 160,000m3 dual-fuel dieselelectric-powered (DFDE) LNG carriers at Samsung HeavyIndustries. The new ships will enter the Thenamaris-managedfleet upon delivery in 2013, 2014 and 2015, respectively.

Part of the of the AP Møller-Maersk Group,Svitzer providestowage services at 18 LNG terminals worldwide by means ofa large fleet of custom-built tugs. The company’s LNGterminal service portfolio includes pilotage, vessel escort inthe approach channels, berthing and unberthing, line handlingand safety capabilities such as firefighting and pollutionprevention and control. Tug design and service solutions aretailored to meet the needs of the individual LNG terminal,with due consideration to LNG carrier size, tug bollard pull,ice classification, safety and environmental requirements.Crews are trained at existing LNG terminals and at Svitzer’ssimulator facilities in Denmark.

The amalgamation of the SMIT and Lamnalco terminal tugand anchor handling vessel operations in 2011, following anagreement between Royal Boskalis and Saudi Arabia’s RezayatGroup, established a world class player in the oil and gasterminal services sector. The union was brought about whenSMIT was purchased by Lamnalco, a 50/50 Boskalis/Rezayatoperation. SMIT had been a fully owned subsidiary of Boskalis.

SMIT-Lamnalco operates over 50 terminal contracts,employs more than 2,000 staff on over 150 vessels and isactive in more than 30 countries across five continents. Theprovision of escort tug services at a number of LNG terminals

constitutes a major part of the new, combined company’soperations.

TMS Tankers Ltd of Athens undertakes the technical andcommercial management of George Economou’s tankerfleet. TMS Tankers is also responsible for supervising theconstruction of the fleet’s newbuildings and amongst thecurrent orderbook are four 160,000m3 LNG carriers to bebuilt at Daewoo Shipbuilding & Marine Engineering.

The quartet, contracted by Economou’s Cardiff Marine inJuly 2011, represent the Greek shipowner’s first foray intoLNG ship construction. The vessels, which will be deliveredover the 2013-14 period, will be powered by DFDE propulsionsystems. A few months after ordering the four ships atDaewoo Cardiff Marine purchased the 2004-built, 145,000m3

Muscat LNG from Oman Shipping. The vessel has beenrenamed Fuji LNG.

Apache LNG Pty Ltd is the Perth-based subsidiary ofApache Corporation, one of the world’s leading independentoil and gas exploration and production companies.Involvement with the LNG sector commenced in September2011 when Apache and its partners in the Wheatstone LNGproject in Western Australia agreed to proceed with thescheme’s development.

The two trains at the Wheatstone terminal will have acombined capacity of 8.9 million tonnes of LNG per annum(mta) and production is scheduled to commence in 2016.Apache will supply gas to Wheatstone from its Julimar andBrunello natural gas fields in the Carnarvon Basin. TheWheatstone partners have signed long-term LNG sales andpurchase agreements with Tokyo Electric Power and KyushuElectric Power in Japan.

Apache Corporation is also part of group seeking todevelop Kitimat LNG, a 5 mta LNG export scheme in BritishColumbia, and for this project it is the operator.

SMIT-Lamnalco is amongst the inaugural SIGTTO associate membersfrom the escort tug sector

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NEW MEMBERS

Quintet welcomedThree companies have joined SIGTTO as full members sincethe last Newsletter was published, while another two havejoined as associate members. The two associate members -SMIT-Lamnalco and Svitzer - are both tug companies. At thelatest SIGTTO Board meeting it was agreed that associatemembership could be extended to providers of specialistescort and harbour tug services at LNG terminals.

The listing of the five companies below shows their date ofjoining the Society. The SIGTTO membership now stands at127 full members, 61 associate members and 20 non-contributory members.

Thenamaris Ships Management 1 Sep2011Svitzer 1 Jan 2012SMIT-Lamnalco 1 Jan 2012TMS Tankers 1 Jan 2012Apache LNG 1 Feb 2012

Athens-based Thenamaris Ships Management Incmanages a fleet of 50 tankers and bulk carriers on behalf ofits Greek principals. These principals have recently enteredthe LNG field by ordering three 160,000m3 dual-fuel dieselelectric-powered (DFDE) LNG carriers at Samsung HeavyIndustries. The new ships will enter the Thenamaris-managedfleet upon delivery in 2013, 2014 and 2015, respectively.

Part of the of the AP Møller-Maersk Group, Svitzer providestowage services at 18 LNG terminals worldwide by means ofa large fleet of custom-built tugs. The company’s LNGterminal service portfolio includes pilotage, vessel escort inthe approach channels, berthing and unberthing, line handlingand safety capabilities such as firefighting and pollutionprevention and control. Tug design and service solutions aretailored to meet the needs of the individual LNG terminal,with due consideration to LNG carrier size, tug bollard pull,ice classification, safety and environmental requirements.Crews are trained at existing LNG terminals and at Svitzer’ssimulator facilities in Denmark.

The amalgamation of the SMIT and Lamnalco terminal tugand anchor handling vessel operations in 2011, following anagreement between Royal Boskalis and Saudi Arabia’s RezayatGroup, established a world class player in the oil and gasterminal services sector. The union was brought about whenSMIT was purchased by Lamnalco, a 50/50 Boskalis/Rezayatoperation. SMIT had been a fully owned subsidiary of Boskalis.

SMIT-Lamnalco operates over 50 terminal contracts,employs more than 2,000 staff on over 150 vessels and isactive in more than 30 countries across five continents. Theprovision of escort tug services at a number of LNG terminals

constitutes a major part of the new, combined company’soperations.

TMS Tankers Ltd of Athens undertakes the technical andcommercial management of George Economou’s tankerfleet. TMS Tankers is also responsible for supervising theconstruction of the fleet’s newbuildings and amongst thecurrent orderbook are four 160,000m3 LNG carriers to bebuilt at Daewoo Shipbuilding & Marine Engineering.

The quartet, contracted by Economou’s Cardiff Marine inJuly 2011, represent the Greek shipowner’s first foray intoLNG ship construction. The vessels, which will be deliveredover the 2013-14 period, will be powered by DFDE propulsionsystems. A few months after ordering the four ships atDaewoo Cardiff Marine purchased the 2004-built, 145,000m3

Muscat LNG from Oman Shipping. The vessel has beenrenamed Fuji LNG.

Apache LNG Pty Ltd is the Perth-based subsidiary ofApache Corporation, one of the world’s leading independentoil and gas exploration and production companies.Involvement with the LNG sector commenced in September2011 when Apache and its partners in the Wheatstone LNGproject in Western Australia agreed to proceed with thescheme’s development.

The two trains at the Wheatstone terminal will have acombined capacity of 8.9 million tonnes of LNG per annum(mta) and production is scheduled to commence in 2016.Apache will supply gas to Wheatstone from its Julimar andBrunello natural gas fields in the Carnarvon Basin. TheWheatstone partners have signed long-term LNG sales andpurchase agreements with Tokyo Electric Power and KyushuElectric Power in Japan.

Apache Corporation is also part of group seeking todevelop Kitimat LNG, a 5 mta LNG export scheme in BritishColumbia, and for this project it is the operator.

SMIT-Lamnalco is amongst the inaugural SIGTTO associate membersfrom the escort tug sector

SIGTTO News Issue 27 7/3/12 13:21 Page 3

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12

NewsSIGTTO News is the Newsletter of the Societyof International Gas Tanker and TerminalOperators Ltd and is published in March andSeptember each year.

Society of International Gas Tanker andTerminal Operators Ltd (SIGTTO)17 St Helen’s PlaceLondon EC3A 6DG, UKTel: +44 20 7628 1124Fax: +44 20 7628 3163E-mail: [email protected] site: www.sigtto.org

Editor:Mike Corkhill

SIGTTO Contact:Linda Murray, Office Manager

Advertisement Sales:Ian Pow, Riviera Maritime Media [email protected]

Printing:Orion Print Services, LU2 7DS, UK

Copyright: ©SIGTTO 2012The contents may be reproduced free ofcharge on condition that acknowledgementis given to SIGTTO News.

REGIONAL PROFILE

Ras Laffan -service centrepar excellenceThe final piece of Qatar’s massive LNGsupply chain network fell into placewith the opening of Nakilat’s newErhama Bin Jaber Al Jalahma Shipyardat Ras Laffan port in November 2010.The commissioning of the new facility,which coincided withthe completion of the14th and final LNGliquefaction train at RasLaffan, has provided aservice centre for theNakilat fleet of 54 LNGcarriers as well as aworld-class ship repaircomplex.

Q a t a r ’ su n p r e c e d e n t e dinvestment in LNGfacilities over the pastdecade is the drivingforce behind thecountry’s phenomenaleconomic growth.Projects undertaken byQatar Petroleum,RasGas, Qatargas,Nakilat and their joint venture partnershave provided an LNG productioncapacity of 77 million tonnes per annum(mta) - equivalent to around 30 per centof global supply in 2011- as well as theworld’s largest LNG fleet to ensure the

safe and reliable delivery of the gas tocustomers worldwide.

Ras Laffan loaded a total of 1,000LNG cargoes in 2011 and there arecurrently few LNG importing countriesto which these Qatari shipments arenot despatched. Qatar Petroleum alsoholds majority stakes in three new LNGimport terminals in Europe and the US.

These record-breaking LNG activitieshelped push Qatari GDP to US$172billion in 2011, a 35 per cent increaseon the previous year. This equates to2.5 per cent of global GDP and 12.5 per

cent of GDP amongst Gulf CooperationCouncil (GCC) countries. Qatari citizensare now the world’s richest on a percapita basis.

Named in honour of a Qatari triballeader who lived a century ago, theErhama Bin Jaber Al Jalahma Shipyardoccupies an area of 110 hectares and issituated 8km offshore, along the newsouthern breakwater of Ras Laffan’sexpanded port. Centrepiece of the yardis the repair facility operated by a newjoint venture company that Nakilat hasestablished with Keppel Offshore andMarine.

Nakilat-Keppel Offshore and Marine(N-KOM) is responsible for the repairand conversion of large ships, includingLNG carriers and very large crude carriers(VLCCs), as well as the repair of medium-sized ships of 20,000-80,000 dwt. Otheractivities that are being broughtonstream in stages at the Erhama BinJaber Al Jalahma Shipyard are thefabrication and maintenance of offshorestructures; the construction of high-value small ships of up to 120 metres inlength; the repair of small ships of up to20,000 dwt; and the production offibreglass-reinforced plastics (FRP)commercial and leisure boats.

N-KOM has available a range ofmodern facilities, including a 400m x80m drydock, a 360m x 66m drydock,

a 230m x 38m floating dock and adedicated cryogenic workshop. Thecompany’s operations, which aremanaged by Keppel, got off to a briskstart in 2011. A total of 20 LNG carrierswere repaired between the arrival ofthe first such ship, the 145,000m3,RasGas-chartered Simaisma, on 29March and the end of the year. Overthat nine-month period no repair yardin the world was busier servicing LNGcarriers than N-KOM.

The N-KOM facilities have beendesigned to handle a large volume of

ships. It is envisaged thatonce traffic has built upto plateau levels,Nakilat’s fleet of 25 fullyowned and 29 partlyowned LNG carriers willtake up just one-quarterof the yard’s repair andmaintenance capacity atany one time, leaving75 per cent free for othervessels to be servicedon a commercial basis.

Nakilat is a joint stockQatari shipowningcompany 50 per centowned by its foundingshareholders and 50 percent by publicshareholders. Its LNGfleet comprises nine

conventional vessels of 146,000-154,000m3, 31 Q-flex ships of 210,000-216,000m3 and 14 Q-max vessels of263,000–266,000m3 in capacity.Nakilat’s 25 fully owned LNG carriers -all the Q-max ships and 11 Q-flex vessels- are managed by Shell InternationalTrading and Shipping (Stasco). The 29partly owned LNG carriers are managedby various of the ship operators withownership stakes in the vessels.

The location of the N-KOM repairfacility adjacent to the gas carrier andoil tanker loading berths at Ras LaffanIndustrial City puts it in an ideal positionto handle the port’s growing trafficvolumes. The output of 77 mta of LNGgenerates large amounts of byproductssuch as LPG, condensate and sulphurwhile the commissioning of the Pearlgas-to-liquids plant in summer 2011 isopening a new export flow of high-specification refined petroleumproducts. A number of dedicated berthshave also been provided for the growingnumber of offshore support vessels andworkboats based at the port.

By 2020 some 4,000 ships areexpected to be calling at Ras Laffan porteach year. At that date the US$2.8billion Erhama Bin Jaber Al JalahmaShipyard is set to be operating at fullcapacity and employing more than10,000 workers.

N-KOM has established its credentials as a leading LNGC repair centre within a year