DNV GL Gas Carrier Update Issue 2017 - Web
DNV GL Gas Carrier Update Issue 2017 - Web
UPDATE 2017
MRV compliance
CONTENT
04 06 12
20
DEAR READER,
Despite the depressed overall maritime market situation we have experienced over the last
one or two years, the gas segment is beginning to move into a more promising direction.
LNG carrier earnings today are far from what they used to be, even though we have lately
seen a small but measurable improvement. The energy demand is huge, new countries
that used to be LNG exporters are now considering becoming importers. The LNG sea-
borne trade represents only eight per cent of the total gas trade and we see a slowdown
in imports in traditional gas-importing countries (Japan, Korea). On the other hand, there
will soon be new kids on the block, with countries such as Thailand, Vietnam, Myanmar,
India (just to mention a few) considering bringing in FSRUs to support their energy
demand. 30 per cent of the world’s seaborne gas trade is now spot trade, which did not
even exist just a few years ago. A substantial increase in gas production, combined with
significant additions to both liquefaction and regasification capacity, have changed the
market fundamentals. 53 large LNGCs will hit the water this year, followed by 41 in 2018.
It is the ambition of DNV GL to support the entire LNG industry as it strives to become
GAS CARRIER more energy-efficient and environment-friendly while improving the cost effectiveness
of its operations. Many improvements have been achieved without jeopardizing the
UPDATE already unprecedented safety record of the maritime gas industry.
Published by DNV GL Last year we developed new rules for LNG bunkering vessels and assisted yards and
Maritime Communications owners in developing new concept designs for the carriage of LNG and LPG. We
DNV GL – Maritime launched new rules for REGAS and supported the efforts of owners to optimize their
20457 Hamburg, Germany energy consumption through our new, ground-breaking tool COSSMOS.
DNV GL AS
1322 Høvik, Norway With approximately 60 per cent of the world’s FSRU fleet in operation, contracted and
Additional authors:
under construction classed DNV GL, and uniquely experienced in FRSU conversions,
Simon Adams (SA), Andreas Kühner (AK) we have been a highly sought-after partner for new projects. We have also been instru-
mental in evaluating new concepts, such as new cargo containment systems, issuing
Design and production:
printprojekt, Hamburg Approvals in Principle (AiP) and General Approvals of Ship Application (GASA).
While current LNG tanker earnings are not something to write Cheniere Sabine Pass (T3 and T4) in the US. A much stronger
home about, the ongoing transformation of this market is worth increase is expected in 2018 when 43.8 bcm of new capacity
paying closer attention to. Until recently, the LNG seaborne will come online, and in 2019 when another 47.8 bcm will be
trade represented only eight per cent of the total gas trade and added. Next year most of the additions will come from Australia
was limited to a few large importers such as Japan and South whereas 2019 growth will be dominated by US export facilities.
Korea. Oil-linked gas prices prevailed and almost all contracts The US as a “new kid on the block” seems to be introducing
were signed as long-term charters with very few ships involved new dynamics such as an increased tonne-mile demand, attrac-
in spot activities. However, a substantial increase of gas produc- tive price arbitrage and much more flexible contract terms.
tion, combined with significant additions to both liquefaction US gas is still establishing its footprint and is testing all
and regasification capacity have changed the market fundamen- potential markets, such as Latin America and Europe as well as
tals. Let’s try to examine some of the most critical ones. the Far East, which, due to the distance, generates the highest
The seaborne trade, after years of stagnation, grew by seven tonne-mile demand. Shipping one million tonnes of US gas to
per cent, adding 17 million tonnes of new cargo. The demand the Far East (per annum) requires around 1.7 ships, whereas the
growth was driven predominantly by China and India, but also comparable trade originating in Australia generates a demand for
by newcomers such as Pakistan, Egypt and Jordan. These coun- 1.1 ships only. So, the tonne-mile effect generated by US exports
tries will continue to drive demand, however we also expect is currently more rewarding than anywhere else.
other countries such as Thailand, Vietnam and Singapore to
play an increasing role as importers. As 85 per cent of newly Market forces
constructed import terminals (or FSRU projects) are located in Another interesting factor is the pricing and competitiveness of
Asia, it is obvious that a substantial part of the new demand will US gas. Most of the traditional Asian gas contracts are based
be satisfied by sea transport. Clarksons Research expects a con- upon oil-linked prices. In the US however, gas is priced accord-
tinued strong growth of seaborne trade, reaching eight per cent ing to the Henry Hub Gas Index and as such is not sensitive to
in 2018. changes in the oil industry. Needless to say, it is not only decou-
pled from oil but also cheap. In fact, with current freight rates of
Growth factors some 40,000 US dollars per day (USD/d), a price difference of
Most of this growth is driven by Australian and US projects. six USD/mBTU FoB in the US versus eight USD/mBTU in Japan
Last year, newly opened terminals such as Australia-Pacific may create an arbitrage of some 0.5 USD/mBTU, which trans-
and Cheniere Sabine Pass (T1 and T2) in the US generated the lates to one million USD per cargo. It is important to note that
majority of new cargoes. In 2017, we expect a modest 25.5 bil- charter rates assumed for the calculation are very low, due to the
lion cubic metre (bcm) increase in liquefaction capacity, mainly current oversupply. Rising rates (something the market hopes
coming from Australian Gorgon (T3), Wheatstone LNG (T1), and for) would require a wider price differential to create arbitrage.
+ 47.8
+ 43.8
2019
2018
+ 25.5
EXPECTED INCREASE
OF LIQUEFACTION 2017
CAPACITY
Capacity added
in bcm/y
US contracts also bring a great deal of flexibility regarding cargoes to shorter routes; for example, Japanese traders might
terms and conditions. Contracts can be signed for any duration resell their US-purchased gas in Europe.
and quantity. There is also a lower penalty for not picking up the
cargo (ToP), as in the US only the liquefaction fee is charged. In Rate increases will take time
addition, no fixed delivery locations are required, which is of It may still take a while for LNG carriers to experience higher
particular interest for traders who, in case of overcontracting, are earnings. The order book is still over 120 ships strong. Deliveries
able to resell their surplus of cargo somewhere else. in 2017 will reach 53 vessels and in 2018 the fleet will grow by
All of these new developments have changed the LNG another 41 tankers – an estimated growth of 10 per cent and 7
trade substantially, making it more international and flexible. per cent, respectively. In light of the plans for major export termi-
On the one hand, a growing number of importers are gener- nal expansions in 2018 and 2019 (unless delayed), freight rates
ating a steadily increasing demand while, on the other hand, are likely to remain low throughout 2017. Nevertheless, the cur-
forcing suppliers to demonstrate more flexibility. According rent remodelling of the market creates new opportunities in the
to IEA, more and more contracts are being signed for shorter longer perspective. JW
Photos: DNV GL, fotmart – Fotolia
Rising demand,
especially from
Asia, is lending new
impetus to the LNG
transport market.
2017 DELIVERIES OF
LNG CARRIERS
2018
53 Vessels added to the
global fleet 41
vessels vessels
>120 vessels
in order book
DESIGNING
FOR OWNERS
An out-of-the-box ship design optimized for the current and
future market and regulatory environment is something
that appeals to owners and charterers. DNV GL has sat down
with industry partners to make it a reality.
Rapid advances in technology and emerging requirements in the Ensuring the reliability of the cargo containment system
LNG carrier market have prompted DNV GL to intensify its efforts under increased stresses played a major role since nearly one
towards developing new, ready-to-build ship designs that are cus- third of all LNG trade occurs on the spot market, which results
tom-tailored to market needs in every conceivable aspect. There in a higher number of heating and cooling cycles compared
are currently two joint development projects (JDP) with industry with traditional fixed-charter trade. An additional important
partners underway, each addressing a specific market segment. consideration was the trend towards lower, more energy-effi-
Their common goal is to make it easier for owners to find the right cient transit speeds. The hull and propulsion system optimiza-
ship design for their needs, providing them with fully developed tion work assumed three operating profiles of 19.5, 16 and 12
designs they can take straight to the yard. knots for a targeted trans-Pacific route. Calm water optimiza-
tion resulted in gains of six, two and five per cent respectively
Efficiency tops the wish list over the reference design for the three operating profiles. The
Finding an efficient design for a new post-Panamax LNG carrier
in the 200,000-cubic metre range was the objective of a JDP
between Daewoo Shipbuilding & Marine Engineering (DSME) HULL AND PROPULSION SYSTEM OPTIMIZATION FOR
and DNV GL. The project began with a thorough market analysis THREE SPECIFIC OPERATING PROFILES
to establish the key criteria for the development work. Based on Compared with the reference ship, the optimized vessel design requires
considerably less propulsion power as shown in this diagram.
this study the project defined its primary targets: carrying more
cargo at lower cost while ensuring the highest levels of reliability, 100
safety and eco-friendly operation. 99
The project addressed all aspects of ship and cargo tank
Propulsion power (%)
98 Existing
design, which included optimization of the hull form, propulsion 97 Optimized
system, auxiliary machinery and electrical systems while maximiz- 96
ing cargo capacity, all based on current and foreseeable regula- 95
tions, market trends and operating patterns. 94
The dimensions of the new Panama Canal dictated the main
93
particulars: a 300-metre length over all, 48.9-metre breadth, and
92
11.8-metre draught. Within these limits, the engineers sought to
91
achieve the highest possible cargo carrying capacity, aiming to 12 knots 16 knots 19.5 knots
exceed 198,000 cubic metres. Speed
optimization calculations were performed using the DNV GL For the portion of the boil-off gas used as LNG fuel, the devel-
hydrodynamic analysis software Wasim as well as statistics opers opted in favour of a “High-Manganese Steel Cargo Tank
and Reynolds-averaged Navier–Stokes (RANS) simulations for Independent Type B” (MCTIB®), which underwent closed mock-
determining wave resistance. up testing using liquid nitrogen (LN2). This solution was selected
The designers based their work on the latest regulations and because it is competitive, features excellent tensile properties,
DNV GL rules and class notations, including BWM, the new IGC high performance and product capacity at low cost, and allows
code, NOX Tier III and the latest applicable EEDI guidelines. The flexible tank shapes while being slosh-free without imposing any
design proposes direct-coupled, two-stroke dual-fuel (DF) main filling limitations.
engines and DF auxiliary engines, assuming LNG to be used as the The proposed vessel will be equipped with a re-liquefaction
primary fuel. A combined gas turbine, electric and steam (COGES) plant for boil-off gas not used for the ship’s own energy needs.
propulsion system was chosen for the optimized machinery. In a sub-project, the JIP partners applied the DNV GL ISDS
Steel-guided Mobile optimize the machinery system, the re-liquefaction plant and the
wave converters control shaft generator in view of the trend towards lower transit speeds.
device
All new developments will be compared with state-of-the-art ves-
sels to make sure that all proposed improvements can realistically
be achieved by owners and charterers. Compliance with the latest
versions of the IGC Code and class rules is a matter of course.
To reduce both the boil-off rate and the construction costs,
the LNGreen II design reduces the number of cargo tanks from
the typical four to only three. The project partners are investigat-
ing the optimal tank arrangement to maximize cargo capac-
ity while optimizing the scantlings and vessel stability as
Camera- well as the cargo ventilation and auxiliary systems. The
equipped
drone designers have decided to take advantage of the flex-
ibility of membrane technology and its insulation
properties and are considering various options to
Steel-guided wave converters installed
outside and inside the tanks enable tank minimize sloshing.
inspection using remote-controlled drones,
without any personnel having to enter the
tanks. This saves both time and money. Advanced simulation tools
Other aspects being investigated include the
trade-off between a twin and single skeg propulsion
(Integrated Software Dependent system, taking into account complex operational sce-
Systems) tool to address the quality, narios as well as market needs in terms of redundancy
safety and security concerns associated and manoeuvrability. Because of the complex nature of
with the software applications used to control LNG carrier operation, the machinery and systems must be
the numerous systems on board LNG carriers. ISDS is a flexible and operate efficiently across the entire operational pro-
process standard which ensures adherence to the widely file. Therefore the project is studying a variety of system configu-
accepted international standards ISO/IEC 15288 and ISO/IEC rations, including technologies such as re-liquefaction, waste heat
12207. Ensuring thorough verification of software by the supplier recovery, variable frequency drives and batteries. The DNV GL
before it is shipped to the yard increases overall reliability and simulation software COSSMOS enables the project engineers to
reduces commissioning delays; it may also reduce insurance assess the impact of each technology on vessel performance and
and maintenance costs during operation. its interaction with other components. The LNGreen II project is
Furthermore, the JDP incorporates DSME’s SloT® (Ship Inter- currently finalizing the individual studies and is expected to reach
net of Things) technology and their wireless computer network completion in late spring.
and integration system Smartship 4.0. The entire on-board com- Explaining the rationale behind these joint development
puter environment underwent thorough scrutiny to ensure cyber- projects, Johan Petter Tutturen, DNV GL Business Director Gas
security. Another neat feature is the installation of steel-guided Carriers, comments: “All the experience and knowledge DNV GL
wave converters on the inside and outside of tanks to allow has to offer will not be fully appreciated if we do not find suit-
remote inspection of tanks using drones. able ways of sharing it with the industry. When we combine our
knowledge with that of other industry partners we often see that
Attractive to owners and charterers 1+1 equals more than 2. It has been a privilege to work so closely
In another joint development project called “LNGreen II”, the with all the other esteemed companies in these projects, and I do
LNG containment system engineering company GTT, the ship- believe we have managed to move the gas carrier business a lit-
builder Hyundai Heavy Industries (HHI), the shipowner GasLog tle further in the ‘safer, smarter and greener’ direction.” AK
and DNV GL have combined forces to develop a state-of-the-art,
ready-to-build design for a 180k LNG carrier. Expanding upon
the same partners’ earlier “LNGreen I” project, LNGreen II aims to DNV GL Experts
explore ways to further enhance the ship design under a new set Yu Seok Kim,
of market conditions, including the new Panama canal. It relies on Senior Approval Engineer Safety & Systems
proven technology and focuses on energy and operational effi- Phone: +82 51 610 7708
ciency while ensuring compliance with future regulations. E-Mail: [email protected]
The main goal, however, is to give builders, owners and char-
terers a sound, attractive option. This puts limitations on poten- Daniel Nordås,
Photos: DNV GL
tial features and technologies to use. Key aspects the project is Engineer Hydrodynamics & Stability
looking at include the potential for optimizing the tank layout Phone: +47 67 57 78 04
and decrease the boil-off rate through smart design, and ways to E-Mail: [email protected]
Design
for trade
LPGreen
Representatives of all key segments of the
The successful outcome of an innova- industry contribute their unique know-how to
tive project depends very much on the the development of a design for tomorrow‘s
parties involved and in the case of Cargo Efficiency market demand.
and fuel & economic
the LPGreen design concept, Kostas flexibility viability
Vlachos, COO of Consolidated Marine council, its safety and technical commit-
Management (CMM), believes the mix tee (ISTEC) and its chemical committee.
is perfect. “The LPGreen project could not He says the idea for the concept of using
have happened at a better time. With 2020 fast approaching, the LPG as a fuel was first voiced several years ago. The project took
shipping industry will have to make the right decisions in regard shape in November 2015 when the partners formally agreed to
to the proper option and avoid spending a lot of money unnec- cooperate, with the actual project work launched in May 2016.
essarily to meet the new regulations coming over the horizon. The LPGreen project pursues five main objectives: use LPG
This concept of LPG carriers offering the efficient option of burn- as a fuel; develop a highly fuel-efficient vessel; increase load
ing LPG is new. Nothing like it has been developed in the past,” rates to spend less time at terminals; and, most importantly, give
says Vlachos. He should know. Athens-based gas carrier owner utmost attention to both safety and an ergonomic arrangement of
and operator CMM, a company of Latsco Shipping, is one of the machinery to improve the safety of the ship personnel as well as
four industry leaders partnering to develop the LPGreen concept ship operability.
design. By contributing the expertise of a ship operator, CMM is Almost a year into the project, the partners agree the results to
key to the project. date have been good. The goal is ambitious, and with the highly
valuable contributions of HHI and cargo handling system
Rapid progress
Apart from CMM, the partners to the LPGreen concept design
project include the shipyard Hyundai Heavy Industries (HHI), the
cargo handling systems manufacturer Wärtsilä Oil & Gas (WAR),
“The concept is a revolution
Photos: Ad Meskens/Wikimedia Commons, DNV GL
The LPGreen
concept design
combines the
best technologies
available today.
provider Wärtsilä Oil & Gas, the primary targets have been cent, and reduces fuel costs through the use of LPG fuel by up to
achieved: the new design will enable savings of five per cent 30 per cent,” he points out. “A slight increase in carrying capacity
to nine per cent in total consumption for all stages of operation has also been demonstrated.”
(loading, discharging as well as sailing in laden condition and Being able to draw on the extensive experience and compe-
under ballast, including chilling and maintaining pressure), com- tence of DNV GL in the LPG shipping sector as well as the classifi-
pared with the reference design, a conventional VLGC built by HHI. cation society’s advanced analytical tools has enabled this consor-
CMM and HHI have been enjoying a strong working relation- tium of international industry leaders to create an innovative ship
ship since HHI began building gas carriers for the Greek operator concept with tangible improvements for the project partners.
at the South Korean yard in 2002. CMM embarked upon this pro- The project has utilized the latest advances in machinery tech-
ject with a focus on finding a practical, energy-efficient design that nology, ship design and operational experience within the bounds
is both competitive and safe, “with the safety aspect at the top of of existing shipbuilding methods. The contribution of the DNV GL
the list,” says Vlachos. “Any concept which is not safe is of no use computer modelling tool COSSMOS has been greatly appreciated:
to anyone,” he argues. “COSSMOS allowed the project to take an analytical approach to
data gathering and evaluation. Various options were compared,
Safety tops the list and the whole project proceeded in a highly professional, focused
George Dimopoulos, Principal Specialist for R&D and Advisory, way towards the main goal: a design concept for a more energy-
DNV GL South East Europe & Middle East Region, who man- efficient VLGC operating on LPG,” says Vlachos.
ages the LPGreen project, says CMM’s operational experience He believes this is the first time the complete cargo, auxiliary
provided invaluable insight into the design aspects. “CMM col- and propulsion machinery was modelled, simulated and opti-
laborated very actively and closely with DNV GL on most of the mized for a full operating profile, and the COSSMOS application
safety aspects, a very important concern for the entire project,” he made this possible. “The role of this and other advanced tech-
stresses. “About half of the project’s roughly 130 new ideas and nologies in identifying the best solutions for the industry is finding
vessel features involve safety criteria.” more wide-spread recognition,” he points out. “There is no doubt
Intensifying environmental pressure is driving energy efficien- today’s computational methods speed up the development pro-
cy improvements across the shipping industry. As the LPGreen cess considerably, enabling us to examine the numbers and reach
concept matures, it will allow LPG-fuelled LPG carriers to become conclusions faster.”
a reality, says Vlachos. The results obtained so far are encourag-
ing: “We have a steady baseline,” he says, “since the vessel the Promoting the concept
project is based on is CMM’s own 54,400 dwt, 84,000 cbm VLGC Vlachos also notes that LPGreen is an international project in
Hellas Gladiator built in 2016. She is a modern and very efficient which Greek shipping has taken a leading role, working closely
ship so all results of our project are true achievements.” with other leaders across geographies and coordinated by the
Summarizing the current project status, George Dimopoulos Piraeus office of DNV GL.
says the design concept is technically feasible, competitive and CMM’s COO says shipowners and their customers should be
practicable. “Comparisons with the reference ship demonstrate made aware of the concept as the industry is considering using
Photos: DNV GL
that the concept improves overall efficiency by up to nine per LNG as a ship fuel. “But on an LPG carrier, that is not the best
cent, reduces energy demand for the cargo handling system by option,” he emphasizes. “I believe LPG ships burning LNG are not
up to six per cent, potentially cuts loading times by up to 35 per the right idea to pursue, since LPG is already available on board
Hull and propeller Tank design of the LPGreen concept design,” he says. The far-reaching devia-
■ Optimized for both calm water ■ 99 % filling limit: tions from traditional designs will make the LPGreen concept
and added resistance in waves 1% additional cargo attractive, he believes, not only in terms of the type of fuel burned
■ Optimized for trade: multiple ■ Higher design pressure
by the main engine but also the changes affecting the cargo
speeds and loading conditions
■ Energy-saving devices reliquefaction plant. Meanwhile, Wärtsilä is proposing a new con-
figuration with only two redundant cargo compressors instead of
the typical three.
Further efforts are needed to make charterers aware of the
innovative features of the LPGreen design regarding bunker capac-
ity as well as loading and discharging procedures, Vlachos adds.
“Charterers in particular have to be brought up to speed about the
development since increased capacity and reduced time spent
in terminals is of great interest to them, along with the significant
reduction in fuel consumption during all stages of operation.
Besides, it is simply necessary to have the charterers on board.”
The LPGreen concept offers great benefits to VLGC owners
and operators. “Now it is up to us to convince the Asian market
to follow. The concept is a revolution compared to the classical
LPG carriers and adding a second gas fuel (LNG) will add to the designs. It secures a lot of energy savings and safety advantages.
overall complexity. Rather, the market should discuss the LPGreen It opens the road into the future, and that is what we at CMM
concept, and by the market I mean all the players, from owners, have chosen as our mission.”
charterers, clients, to shipbuilders, equipment makers and bodies The decisive factor that has made this truly innovative and
such as Bimco, SIGTOO and Intertanko. They all should promote practicable concept possible is close collaboration of representa-
the idea of burning LPG rather than natural gas and formulate tives of all key industry segments — builders, vendors and class.
the proper clauses in charter parties for that purpose, because “All the partners in this project have given their best, offering their
this involves a complex set of regulations. In fact, the concept is a knowledge and experience from their respective sectors,” Vlachos
legal matter that should be addressed as soon as possible. Until emphasizes. GD
now nothing has been done on this front, and time is moving fast.”
This is a good time to promote a new design concept as ship
newbuilding prices are reasonable, Vlachos points out. Until all DNV GL Expert
parameters are clear and all questions answered, CMM will hold George Dimopoulos (GD),
off on ordering a new ship, however. “We have always wanted to Maritime R&D and Advisory
lead the way but have to wait and see what happens in the com- Phone: +30 2104100200
ing months, but I expect market pressure to speed up acceptance E-Mail: [email protected]
Using the DNV GL software COSSMOS, the project partners were able to take
an analytical approach to gathering data, evaluating various design options
and comparing variants.
The global count for LNG-fuelled ships as per March 2017 shows
102 ships in operation and 108 on order. In addition, 77 LNG-
ready ships already in operation or on order are designed for effi-
cient conversion from conventional fuel to LNG. While in previous
years the LNG industry was mainly concentrated in Norway, the LNG-fuelled LNG-ready
LOW-POLLUTION ENERGY
FOR EMERGING MARKETS
As floating natural gas sources, FSRUs bring energy and quality of life to places lacking
conventional supply infrastructure. Far superior to land-based alternatives in terms of cost,
environmental impact, and construction time, FSRU newbuilding projects are booming.
HÖEGH LNG Höegh LNG just ordered one new vessels will be DNV GL-classed. ordered FSRUs will have full trading
floating storage and regasification With this newbuilding programme, capabilities. The first vessel will be
orders new unit (FSRU) from Samsung Heavy Höegh aspires to become the delivered by SHI in May 2019, with
Industries (SHI) and Hyundai Heavy leading global provider of FSRUs the optional ones expected to fol-
FSRUs with Industries respectively plus an for LNG. With a storage capac- low at six-month intervals. They will
DNV GL class option for three more from SHI. All ity of 170,000 m3 each, the newly serve in Ghana and Pakistan.
Commissioned in
2014, Höegh Gallant
DNV GL at the forefront of FSRU development
is currently moored
in Ain Sokhna, Egypt,
providing LNG for power
generation. 1962 2008
■ DNV GL has played a key ■ Development of
role in defining the LNG Classification Note for
carrier industry FSRUs
■ First classification society
to publish rules for gas
carriers in 1962
15
There are four contestants for market leadership.
New players are expected to enter the market soon.
24 FSRUs
currently in operation
ORDERS EXMAR/EXCELERATE
6 in operation
1 on order
5 on order
mainly located in the Middle East, underscores the general trend towards this
GOLAR LNG 7 in operation 2 on order
North Africa & South America flexible, readily available energy source.
30-50
125,000 m 3
170,000 m3
Photos/Illustrations: CC0 1.0, icons by Freepik from www.flaticon.com,
61%
■ First conversion to FSRU: ■ Latest revision
DNV-classed Golar Spirit of REGAS rules
■ First FSRU newbuild: 39%
DNV-classed FSRU Neptune other
class of global FSRU DNV GL
(below)
fleet classed by
DNV GL
Höegh LNG (2)
Current
projects 19 FSRU
newbuilds 4 FSRU
conversions
-162 °C
PREPARING FOR
MRV COMPLIANCE
The European Union’s Monitoring, Reporting and Verification (MRV) regulation requires, as a first
step towards compliance, monitoring plans for every ship to be submitted to independent verifiers by
31 August 2017 at the latest. This overview helps owners and operators get ready.
Now
The upcoming EU MRV regulation requires careful attention. As ■ Will I be able to efficiently extract and aggregate all the
a very first step, companies should assess whether tools already required data as necessary for the emissions report and
in place today will suffice for the MRV regulation and its report- corresponding verification?
ing needs or whether they need to be extended or maybe even ■ Is the system sufficiently implemented within the company to
replaced by a new solution. Important questions to ask include: ensure a certain data quality which matters for MRV reporting,
■ Is my system capturing all the required data? Is it also capable as data will be made publically available?
of differentiating between EU ports and non-EU ports, while
reflecting on the different fuels and emissions at berth as well Once assessed and decided, companies will need to establish
as many additional details such as anchoring time? Does it management procedures to ensure successful implementation of
allow for repair calls in ports not subject to reporting require- their monitoring systems and their proper usage on board. On
ments and so forth? the way towards compliance, we propose the following actions:
Summer Beginning g
2017 Beginnin
2018
2019
Companies have until 31 August 2017 to The first reporting period commences at the Prepare the emissions report and submit it
create and submit a ship-specific monitoring start of 2018. Based on your individual moni- to the contracted verifier. DNV GL has incor-
plan to the contracted verifiers indicating the toring plans, your vessels will collect all the porated the guideline on verification for its
method chosen to monitor and report emis- necessary data and transfer them ashore. verification activities.
sions and other relevant information for each
vessel over 5,000 GT that calls at EU ports. We suggest you initiate the processing of
data in 2017 so there is still time to take cor-
Preparing the monitoring plan can be a rective action in case any system or process
time-consuming task. Its content is specified shortcomings are discovered.
in detail by the EU MRV regulation. Require-
ments include ship-specific data, such as
emission sources, as well as information about
the development and implementation of
additional management procedures.
DNV GL’s MRV monitoring plan app sup- Navigator Insight is our suggested tool for DNV GL‘s emissions report verification
ports you in preparing your monitoring plans ship-to-shore data collection and reporting. Verification of your emissions report(s) starts
for your entire fleet – semi-automatically and in January 2019. DNV GL will design the
efficiently. The app pre-populates technical verification process as digital as possible to
input fields in advance where data is already reduce the additional work for you. We will
available from external data sources such as check your emissions report against your
vessel particulars. It supports the definition of voyage log abstract and the external data we
management procedures by offering prede- require.
fined text blocks. Upon completion it com-
piles all information gathered in the correct
format. The app is available to our customers
through My DNV GL free of charge.
Photos: DNV GL, froggster – Fotolia
Please refer to
DNV GL‘s monitoring plan verification
We will verify whether your company has www.dnvgl.com/mrv
compliant monitoring plans and is ready to for a comprehensive overview
submit plausible emissions reports. DNV GL of all topics regarding the
will design the verification process as digital EU MRV regulation.
as possible to reduce the additional work
for you.
DNV GL Expert
Per Holmvang,
Environmental Technology Advisor
Phone: +47 917 61 621
E-Mail: [email protected]
SAVING COASTAL
ECOSYSTEMS
With the Ballast Water Management Convention coming into force in September, shipowners and
operators have little time left to ensure compliance. DNV GL provides comprehensive support.
It has taken the International Convention for the Control and Man- Most initial surveys can be performed in conjunc-
agement of Ships‘ Ballast Water and Sediments (in short, Ballast tion with other surveys.
Water Management or BWM Convention) nearly 20 years to reach The D-1 standard relates to the first,
this point, but following the accession of Finland last autumn, transitional implementation phase
the percentage of global shipping tonnage covered by ratifying of the convention, during which
nations finally crossed the required 35 per cent threshold. The all ships not equipped with
BWM convention, a crucial measure to protect marine ecosystems compliant ballast water treat-
against invasive aquatic species, will take effect on 8 September ment systems are required to
2017. exchange their ballast water
With only a few months to go, shipowners must take action as in mid-ocean, at specified
soon as possible to implement the convention. All affected ves- distances from the nearest
sels – which includes most ships travelling international waters shore, using one of several
and using ballast water – will be required to carry on board an approved methods.
approved Ballast Water Management Plan (BWMP) as well as the
International BWM Certificate ensuring compliance with the so- BW treatment systems
called D-1 standard, the first portion of the convention. If the flag The next step for owners
state of a vessel has not ratified the BMW Convention as yet, a and operators will be to
Statement of Compliance (SoC) should be issued and carried on review the International Oil
board to avoid challenges of documenting compliance in foreign Pollution Prevention (IOPP)
ports. Furthermore, all ballast water operations must be document- certificate renewal date for
ed in a BWM record book. Since approval activities are expected each particular vessel. The first
to intensify as the deadline draws nearer, it is advisable to submit IOPP renewal date after 8 Septem-
the BWMP for approval as soon as possible. Shipowners and oper- ber 2017 is the deadline for installa-
ators should begin the process by identifying the affected vessels tion of a ballast water treatment system,
still lacking this documentation. Where required, they should order the second phase of the convention,
and perform the initial survey in due time before 8 September. which stipulates the actual treatment of ballast
and hand it in for approval tion of the particular vessel stored and accessible via
to generate the Ballast My DNV GL
Water Management Plan ■ Avoids the need for
■ Smooth 1-click transition iterative clarifications
The customer portal
My DNV GL provides access of plan to approval with
to the web application. discounted pricing
Norwegian owner Ocean Yield ASA took delivery of the 36k ECO
STAR-type vessel, the largest LEG carrier with Type-C tanks built to
date, from Sinopacific Offshore and Engineering shipyard, China,
on 11 November 2016. GasChem Services, a member of the Hart-
mann Group based in Leer, Germany, has been entrusted with
GasChem Beluga’s commercial management, and Hartmann Gas
Carriers is in charge of technical and nautical operations. The ship
operates under a long-term charter for SABIC Petrochemicals B.V.
and will be joined by her sister vessel GasChem Orca this summer.
The ECO STAR design was developed under the leadership of
Hartmann Reederei working closely with several long-term part-
ners: HB Hunte Engineering of Oldenburg, Germany, designed
the ship itself; the unique Star-Trilobe tank, which combines three
cylinders into a single unit, is a brainchild of Star-Gas Tank Design
(SGTD); and the gas plant and equipment were designed by AC
Inox GmbH, Alsdorf, Germany. “When we came up with this idea GasChem Beluga is the largest LEG carrier with Type-C tanks built to date.
Aiming higher
It was not until 2012 that the market began demanding LECs
carrying more than 25,000 cubic metres. Until then the com-
mon assumption was that Type-C tanks larger than 40,000 cubic
metres were not feasible, and that future ethane carriers capa- The next big thing:
85k VLECs featuring
ble of transporting in excess of 80,000 cubic metres would use space-saving Trilobe tanks.
either prismatic Type-B tanks or several membrane systems. But a
comparative study by DNV GL of typical 83k VLGC hull scantlings,
which would also apply to 85k very large ethane carriers (VLECs),
concluded otherwise.
Hartmann and Star-Gas Tank Design took up the challenge upon the support elements are lower than those from 36k tanks.
and adapted their Star-Trilobe concept for the next generation of In 2015 JHW Engineering & Contracting, a joint venture of the
85,000 cubic metre VLECs. The dimensions of the enlarged tanks Luxemburg-based Jaccar Holdings, Hartmann and the Chinese
are impressive: at a length of 40.4 metres and a lobe diameter of engineering company WOE headquartered in Shanghai, ordered
21.6 metres, each tank rises to a height of 27 metres, weighs in at five 85k VLECs from Dalian Shipbuilding Industry Offshore Co.
1,900 tonnes and has a volume of 23,100 cubic metres. (DSIC), China, which is also installing the Trilobe tanks. The ships
The tank design has been verified by DNV GL. The refined will be managed by United Ethane Carriers (UEC), a joint venture
design analysis went beyond the normal scope of Type-C tanks, of Jaccar and the Hartmann Group established specifically for
which covers aspects such as plastic deformation and buckling. developing the ethane business. UEC secured a 10+5-year char-
“We also performed fatigue and crack propagation analyses and ter contract with Oriental Energy for the five vessels. The first ship
supported the designers in specific areas such as the twin saddle, is scheduled for delivery in early 2018.
swash bulkhead and triple Y-joint design tasks, enabling signifi- “In view of the considerable amount of new design work
cant improvements to the 36k Trilobe design,” explains Matthias involved in these new gas carriers it is extremely important to
Photos: DNV GL, Hartmann Reederei, www.marigraph.com
Malinowski, Ship Type Expert at DNV GL. The fatigue strength and work very closely with class,” says Michael Ippich, Managing
fracture mechanics verification performed by DNV GL was extend- Director Operations of Hartmann Shipping Services. “We essen-
ed from a 20-year to a 30-year tank lifetime. tially developed a prototype, and the gas carrier expertise of
Further enhancements were achieved by including V-shaped DNV GL was instrumental in bringing it to maturity.” AK
longitudinal bulkheads (LBHD) and inter-lobe venting. All these
features add up to a highly advantageous weight and capacity
rating, with space utilization approximating that of a standard DNV GL Expert
VLGC design with Type-A prismatic tanks. The tanks are propor- Matthias Malinowski, Ship Type Expert –
tionally lighter than bilobe tanks while offering around 20 per Type-C Gas Carrier
cent more capacity, and 50 per cent more than cylindrical forms Phone: +49 40 36149 3751
on ships featuring the same hull scantlings. The stresses acting E-Mail: [email protected]
PUTTING A STOP TO
CYBER EXPLOITS
Marine Cybernetics, a DNV GL service line, works to identify maritime and offshore cyber-
security vulnerabilities. The experts give an in-depth look into one of their most recent cases.
“This was a vulnerability that could have allowed a hacker to of industrial communications,” Csorba adds. “The proof of
remotely shut down the drilling control system, a blowout concept developed by MC only required TCP/IP packets to
preventer, power management systems, or an emergency be sent to the PLC. By doing this we could disable a PLC
shutdown system,” says Mate J. Csorba, Principal Specialist in such a way that only a cold restart would bring it back to
Cybersecurity, Marine Cybernetics (MC). In January 2016, normal operation.”
Csorba’s MC team and partners at the Norwegian Univer-
sity of Science and Technology (NTNU) contacted Siemens High-severity vulnerability
about a denial of service (DoS) vulnerability in a series of The issue detected received a base rating of 7.5 out of 10
their programmable logic controllers (PLCs). Designed based on the industry standard for assessing the severity
for discrete and continuous control in industrial environ- of computer system security vulnerabilities (CVSS) – which
ments worldwide, these PLCs are among the most widely meant it was a high-severity vulnerability. Most control
deployed Siemens controllers. Many critical applications are systems are designed assuming a secure PLC operating
built on top of this family of PLCs. environment.
“We engaged with ProductCERT, the central Siemens But in practice, industrial systems are often connected
team for responding to potential security incidents and to other networks, allowing remote access through the
vulnerabilities,” continues Csorba. “Through a coordinated Internet. “This vulnerability could have been exploited by an
disclosure procedure, we sent an encrypted proof of con- attacker gaining access to the control system network. This
cept showing how the vulnerability could be exploited.” The is why the verification and testing of deployed barriers, such
resulting dialogue between Marine Cybernetics services as network segregation, and secure remote connectivity is
and Siemens produced a firmware update that addressed so essential to ensuring system security,” says Csorba. While
the issue. the vulnerability identified by Marine Cybernetics services
“This most recent finding has been the result of our col- and NTNU was, on this occasion, in a Siemens PLC, serious
laboration with the Department of Telematics at NTNU. The vulnerabilities have also been reported in similar products
investigation relied on state-of-the-art security testing meth- from other vendors. “The ProductCERT team from Siemens
odologies, in particular fuzzy testing and negative testing was excellent. They handled the finding and disclosure
The inventiveness
and viciousness of
hackers should not
be underestimated.
DNV GL Expert
Dr Mate J. Csorba, Principal Specialist
Cybersecurity, Marine Cybernetics services
Phone: +47 486 03 646
Modern ship systems are vulnerable to cyberattacks and
E-Mail: [email protected]
computer viruses.
MY
DNV GL
A CLICK AWAY
My DNV GL, the customer portal of DNV GL, provides “We are very pleased to see that the number of users
a single point of entry into all relevant applications as has increased to 7,500. We have received plenty of posi-
well as exclusive information resources. A new, intuitive tive feedback. Customers are eager to have access to a
interface and customized accounts enable users to easily digital interface,” says Kay Dausendschön, Programme
access the services they need to advance their business – Manager for My DNV GL. KD
whether they are shipowners, managers, yards, designers,
manufacturers or flag states.
PSC
In brief MOUs based on specific criteria Benefits
The Port State Control (PSC) app and historical data. It provides com- ■ Provides an instant
allows users to determine the likeli- prehensive statistics of past defi- overview of the inspection
ness that their vessel will be inspect- ciencies and detentions, filtered by risk for the customer’s
ed at a specific port and helps them vessel category (e.g. type, size, age) entire fleet
be prepared optimally for the next and port to help determine high- ■ Saves time in preparing
Port State Control inspection. risk items. The PSC pages include for inspections
bespoke checklists for customer ■ Helps customers to focus
Features vessels so the crew can make sure their checks on truly
The PSC app predicts the likeliness the ship is well prepared for the important items when
of inspection under the three major next inspection. entering port
vessels called “My fleet” that can be ■ Manage ISM audits and non- and DNV GL side
displayed in a graphical overview. conformities ■ Fleet overview accessible from
Status information includes ship ■ Full control of user and anywhere at any time
position, certification details, audit vessel access ■ All relevant vessel data is stored
and survey data, class status and ■ DATE (Direct Access to Technical and accessible via My DNV GL
much more.
Features
■ Switch between “My fleet” and
LNGi
In brief Benefits ■ Understand current
The application hosts LNGi, the LNGi combines market intelligence market developments and
DNV GL business intelligence portal provided by LNG suppliers, infra- evaluate the uptake of LNG
for the LNG industry, to support structure owners and DNV GL to fuel and competing technologies
and accelerate the adoption of LNG create a comprehensive informa- in their segment
as a ship fuel. tion platform for the industry. LNGi ■ Get up-to-date, accurate
allows members to: information regarding potential
Features ■ Assess the availability and attrac- LNG suppliers for specific
In addition to detailed statistics on tiveness of LNG fuel for specific projects
LNG–fuelled ships, shipowners, routes and newbuilds ■ Use an efficient source of infor-
charterers, LNG suppliers, and equip- ■ Save time and the cost of map- mation for business development
ment manufacturers have access to ping LNG availability themselves and planning
an interactive LNG bunkering map
which delivers and continuously
updates information on the entire,
worldwide LNG ship fuel value chain.
MRV READINESS
In brief in general and check for compliance
The MRV Readiness application enables a fast with MRV. Furthermore, the MRV process
gap analysis between a customer’s monitor- and its timeline are represented graphically.
ing and reporting system and the require- Users can check for updates on MRV in the
ments according to the new EU regulation on app’s news section. The app also includes a
monitoring, reporting, and verification (MRV). frequently-asked-questions section and pro-
vides direct access to experts if required.
Features
According to the new EU MRV regulation, all Benefits
vessels calling at EU ports must monitor and The MRV Readiness app supports envi-
report their CO2 emissions as of 2018. The ronmental compliance officers and fleet per-
MRV Readiness app provides a comprehen- formance departments in identifying gaps
sive checklist of all data that must be moni- between their current monitoring and report-
tored on EU-related voyages and reported to ing systems and the requirements of the MRV
the European Commission. A full explanation regulation.
is given for each data category, allowing own-
ers and operators to learn more about MRV
CYBERSECURITY SELF-ASSESSMENT
In brief ■ Does a company/vessel have a and improve resilience against
The application helps users assess cybersecurity vulnerability that cyberattacks.
relevant questions regarding cyber- could be exploited? Using a questionnaire, users
security in a maritime environment ■ How well is a company/vessel can assess the cybersecurity risk
(shipping companies, vessels). The protected against a cyberattack? for each process or system. This
quick check covers the following ■ What could the consequences of includes potential loss of data and
questions: a cyberattack be for the vessel/ software availability, among other
business? items. The application also gives a
general overview of cybersecurity.
Features
The application offers a Benefits
straightforward way for The app updates customers regu-
customers to assess their larly on the latest developments
cybersecurity measures. and discoveries in the field of
It provides an overview cybersecurity and provides a means
of high-risk items and to assess the status of a company or
the general risk status of vessel, identify common vulnerabili-
maritime assets. It also ties, and plan the next steps to fend
creates awareness and off cyberattacks.
provides general recom-
mendations on how to
eliminate vulnerabilities
DATE
In brief alterations. An update that will be ter answers are provided
The DATE application offers direct implemented soon will also include faster. Queries are automatically
access to our most competent answers to frequently asked ques- passed on to the most compe-
and up-to-date experts on every tions to provide customers with an tent and up-to-date subject matter
maritime topic. All owners and additional source of information. expert. In urgent cases responses
operators of DNV GL-classed ves- take only a few hours.
sels are automatically entitled to Benefits
use DATE. All relevant
vessel data
Features is stored and
More than 400 experts covering all accessible via
technical disciplines at five centres My DNV GL.
around the world stand ready to Using the
answer questions, independent of web applica-
the time zone. Some of the subjects tion avoids
they offer support for include certifi- the need
cate issues, postponements, survey for iterative
requirements, evaluation of repair clarifica-
proposals, class and statutory tions, which
rule interpretation, and minor means bet-
Photos: DNV GL
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@dnvgl.com [email protected] [email protected] Phone: +44 207 357 6080
[email protected]
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©DNV GL 04/2017 ID 1352640