2019 LNG Supply Chains and the Development of LNG as a Shipping Fuel in Northern Europe 62 页

Contents
Acknowledgments ................................................................................................................................ ii
Preface .................................................................................................................................................. iii
Contents ................................................................................................................................................ iv
Figures ................................................................................................................................................... v
Introduction ........................................................................................................................................... 1
The environmental impact of marine shipping .................................................................................. 2
Context: Tightening regulation of pollution from marine transportation ....................................... 2
IMO and EU limits on the sulphur content of shipping fuels ............................................................... 2
Limits on emissions of nitrogen oxides from shipping ........................................................................ 5
IMO limits on NOx emissions ........................................................................................................... 5
Norwegian national limits on NOx emissions ................................................................................... 7
Monitoring, regulating, and reducing CO2 emissions from shipping ................................................... 7
LNG as a shipping fuel ....................................................................................................................... 11
Environmental credentials regarding SOx and NOx .......................................................................... 11
Price considerations .......................................................................................................................... 11
Existing vessels ............................................................................................................................. 11
Newbuild vessels ........................................................................................................................... 14
Where does this leave the economic case for LNG? .................................................................... 15
LNG supplies in the North Sea and Baltic Sea region: Sources of LNG for bunkering .............. 15
LNG supply chains ............................................................................................................................ 15
Early development of the North Sea/Baltic Sea LNG supply chain (2003–10) ................................. 16
Development of the North Sea/Baltic Sea LNG supply chain since 2010 ........................................ 17
LNG terminals ................................................................................................................................ 17
Truck loading facilities.................................................................................................................... 19
LNG bunkering facilities ................................................................................................................. 20
A complete LNG supply chain ....................................................................................................... 21
Market development: The regional LNG-propelled fleet ................................................................. 23
Small-scale LNG carriers and bunker vessels .................................................................................. 23
LNG-fuelled vessels (excluding LNG carriers) .................................................................................. 25
Waves of growth in the LNG-fuelled fleet ...................................................................................... 25
Future growth of the LNG-fuelled fleet ........................................................................................... 28
The regional non-LNG fuelled fleet and prospects for bunker fuel demand ..................................... 30
The regional non-LNG fuelled fleet ................................................................................................ 30
Challenges in measuring current regional bunker fuel demand .................................................... 32
Future regional bunker fuel demand .............................................................................................. 35
Significant actors in the North Sea/Baltic Sea LNG supply chain ................................................. 36
Gasnor (majority owned by Shell since 2012) .................................................................................. 36
Overview and company history ...................................................................................................... 36
Analysis .......................................................................................................................................... 36
Skangas (Gasum subsidiary) ............................................................................................................ 37
Overview and company history ...................................................................................................... 37
Major assets and activities ............................................................................................................. 39
Analysis .......................................................................................................................................... 39
AGA and Nauticor (Linde Group) ...................................................................................................... 40
Overview and analysis ................................................................................................................... 40
Fluxys and Gasunie .......................................................................................................................... 42
Comparing the business strategies of different bunker fuel suppliers .............................................. 43
Vessel owner–operators as consumers of LNG as bunker fuel ........................................................ 44
Ferry companies ............................................................................................................................ 44
Shipping companies....................................................................................................................... 45
Analysis of consumer behaviour .................................................................................................... 46
Conclusions ......................................................................................................................................... 47
Appendix 1: LNG bunkering methods .............................................................................................. 50
Truck-to-ship (TTS) ........................................................................................................................... 50
Ship-to-ship (STS) using bunker barges and bunker vessels ........................................................... 50
Shore-to-ship – also known as port-to-ship (PTS) ............................................................................ 51
Container-to-ship ............................................................................................................................... 51
Appendix 2: Availability of LNG services in the North Sea/Baltic Sea region .............................. 52
Appendix 3: Engines in LNG-Fuelled Vessels ................................................................................. 55

Figures
Figure 1: Permitted sulphur content of shipping exhaust gases under IMO/EU regulations .................. 4
Figure 2: Current IMO limits on NOx emissions by ship construction date and engine speed ............... 6
Figure 3: Energy content of marine fuels ................................................................................................ 9
Figure 4: Bunker fuel prices in NW Europe (US$ per tonne) ................................................................ 12
Figure 5: LNG import and export terminals in the North Sea/Baltic Sea ECAs .................................... 18
Figure 6: Schematic representation of the different LNG bunkering practices ..................................... 20
Figure 7: Typical LNG bunkering by different generic ship type ........................................................... 21
Figure 8: Existing LNG bunkering facilities in the North Sea/Baltic Sea ECAs .................................... 22
Figure 9: Global fleet of LNG-fuelled vessels by location (number of vessels in operation) ................ 26
Figure 10: Global LNG-fuelled fleet in operation by vessel type and location (January 2019) ............. 27
Figure 11: Vessels in operation and on order by type in the North Sea/Baltic Sea region, including Norway (January 2019) ....................................................................................................... 29
Figure 12: Global LNG-fuelled fleet on order by vessel type and location ........................................... 30
Figure 13: Vessels by type operating in the North Sea and Baltic Sea (UNCTAD and Marine Traffic statistics) .............................................................................................................................. 31
Figure 14: Regional bunker fuel consumption in 2015 ......................................................................... 33
Figure 15: IEA forecasts for LNG bunker fuel demand ....................