Within 10 years the majority of shipping vessels will run on LNG...a cleaner, alternative fuel source. The newest innovation in LNG carrier engine design, M-type, electronically controlled, gas injection (ME-GI) engines, optimize the capability of slow speed engines by running directly off BOG (removing the need to reliquefy the gas) or utilizing fuel oil, and ME-GI propulsion results in less fuel consumption.
Environmental legislation is currently impacting the marine market segment. Ships were traditionally powered by Heavy Fuel Oil (HFO), which produces high levels of harmful pollutants. LNG is one of the only fuel source able to comply with the environmental legislation.
1. LN
G
3‐5
Maritime Propulsion 3/31/16: LNG engine set in Crowley’s new ConRo ship ………………………………………………………….. 7
HHP Insight 3/30/16: LNG‐Diesel dual fuel powerplant placed in first of two ships……………………………………………….. 8‐9
10
11
12
13‐14
15‐16
17
18
18
Maritime Propulsion 3-11-16: MAN Diesel & Turbo inks deal with Japan’s JFE…………………………………………………………
FT 03/09/16: Time called on era of ever‐bigger container ships……………………………………………………………………………...
WSJ 03/09/16: Chevron LNG bet meets big chill……………………………………………………………………………………………….……..
FT 2/11/16: Maersk’s stumble highlights sluggish state of global trade …………………………………………………………………..
01/10/16:US will be a gas supplier to the world by tomorrow ………………………………………………………………………..……..
WSJ 12/02/15: Out‐of‐Bounds CO2 elutes talks………...……………………………………………………………………………………….…….
Gas Marine Fuel 12/03/15: The Majority of shipping vessels are set to run on LNG within 10 years…………………………
SMi 12/03/15 Presents its masterclass on...Gas as a Marine Fuel.…………………………………………………………………………...
Marine Link 11/03/15: First LNG Containership Transits the Panama Canal……………………………..…………………………...…
19
LNG‐Gas Supply System for ME‐GI gas‐injection system Manifold product sheet……………………………………………... 6
Within 10 years the majority of shipping vessels will run on LNG...a cleaner, alternative fuel
source. The newest innovation in LNG carrier engine design, M-type, electronically controlled,
gas injection (ME-GI) engines, optimize the capability of slow speed engines by running directly
off BOG (removing the need to reliquefy the gas) or utilizing fuel oil, and ME-GI propulsion
results in less fuel consumption.
Environmental legislation is currently impacting the marine market segment. Ships were
traditionally powered by Heavy Fuel Oil (HFO), which produces high levels of harmful
pollutants. LNG is one of the only fuel source able to comply with the environmental legislation.
Dynamic Controls designs and manufacture the gas supply system for ME-GI gas-injection
system manifolds.
CONTENTS: Page:
The following pages 3 thru 36 , represent various publications/news articles regarding LNG
applications, markets, anddevelopments.
LNG‐Gas Supply System for ME‐GI gas‐injection system Manifold (3 page brochure)…………………………………………
Issue Date: 12 Apr 2016
Page 1 of 36
2. LN
G
Marine Link 11/03/15: ABS deems Crowley Product Tanker “LNG‐Ready’…………………………...………………………………..
Issue Date: 12 Apr 2016
Page 2 of 36
20
WSJ 07/22/15: Economic Anchor. July 22, 2015……………………………………………………………………………………………………….. 21
IGU World LNG Report 2015 edition—section 5 …………………….………………...………………………………………………………….. 22‐34
Marine Link 06/10/15: DSME launches LNG carrier for Turkey………………………………………………………………………………….. 35
Motorship 11/27/13: MAN hosts phase of EU LNG initiative. November 27, 2013.…………………………………………………. 35‐36
CONTENTS—CONTINUED
The following pages 3 thru 35, represent various publications/news articles regarding LNG
applications, markets, anddevelopments.
6. Gas Supply System for ME-GI gas-injection system Manifold
LNG
Market(s) for Dynamic Controls’ LNG, gas supply system for ME-GI gas-injection system manifolds
are,Container ships, and other cargo ships—Please refer to, Shipping Industry Fleet -page 21 of 36.
19 Apr2016
Piellisch, Rich. Crowley isbuilding
two LNG-fueled Commitment-
class ConRo ships for the Puerto
Rico trade. March 30, 2016 .
http://hhpinsight.com/
marine/2016/03/crowley-maritime-
sets-first-man-engine/. 4/21/16.
Methane Manifold Block Exploded View Nitrogen Manifold Block Exploded ViewGas SupplySystem
•ME-GI Gas-Injection System Manifolds for New Build and Retrofit market(s) Worldwide
Application
Product Code Sizes Type of Manifold Design Pressure
Non-
Vented Ventilated Methane Ethane
No. of DCL
cartridge valves
in each manifold
GVT-C4-A-1-D-1-A-4 1" Singleline 400 Bar/5801psi X X 16
GTV-C4-A-1-D-2-A-4 1” Dualline 400 Bar/5801psi X X 16
GVT01-C4-A-1-D-1-A-4 1” Singleline 400 Bar/5801psi X X X 16
GVT01-D5-B-1-D-1-A-4 1½” Singleline 420 Bar/6207psi X X X 16
GVT01-E6-B-1-D-1-A-4 2” Singleline 420 Bar/6207psi X X X 16
GVT-A2-3-A-1-A-1-A-4 ¼” Small block
*
4
* Small block with A2 valves installed, used on Nitrogen only and is supplied as an additional unit with all the above
DCL Cartridge Valves, refer to: 1 of 27
Page 6 of 36
7. Issue Date: 12 Apr 2016
The main engine has been set onto Crowley Maritime Corporation’s
new vessel, El Coquí, the first of two new Commitment Class ConRo
(combination container and Roll/On‐Roll/Off) ships that will be pow‐
ered by liquefied natural gas (LNG) for use in the ocean cargo trade
between Jacksonville and Puerto Rico.
“This state‐of‐the‐art engine technology will add efficiency while con‐
tinuing to reduce impacts on the environment, one of Crowley’s top
priorities,” said John Hourihan, senior vice president and general man‐
ager,Puerto
Ricoservices.
“Utilizing this
green technolo‐
gy is just anoth‐
er way we are
demonstrating
our commit‐
ment to the
people of Puer‐
to Rico, our
customers and
the environ‐
ment. Italso
bears mentioning that neither of these ships, which have been design
specifically for the Puerto Rico trade, gets built without the Jones Act –
a federal statute that provides for the promotion and maintenance of a
strong American merchantmarine.”
A video showing the progress of setting the engine may be viewed
onlinehere.
The engine was placed using a series of heavy lifts by 500‐ton cranes in
the shipyard of VT Halter Marine, a subsidiary of VT Systems, Inc.,
where El Coquí (ko‐kee) and sister ship, Taíno (tahy‐noh), are under
construction. The engine has a total weight of 759 metric tons and
measures 41 feet high, 41 feet in length, and 14.7 feet wide.
“Customers will not only be able to experience the same reliable and
dedicated service they have with Crowley today, but also will havethe
added benefit of lower emissions once these two ships jointhe Crowley
fleet,” said Jose “Pache” Ayala, Crowley vice president, Puerto Rico.
“Crowley is making a significant investment in the Puerto Rico trade to
provide faster transit times while continuing with the abilityto carry
and deliver the containers, rolling cargo and refrigerated equipment
our customers counton.”
Designing, building and operating LNG‐powered vessels is very much in
LNG Engine set in Crowley’s new ConRo
ship—March 31, 2016
http://hhpinsight.com/marine/2016/03/crowley-maritime-sets-first-man-engine/
line with Crowley’s overall EcoStewardship positioning
and growth strategy. The company formed an LNG
services group in 2015 to bring together the compa‐
ny’s extensive resources to provide LNG vessel design
and construction management; transportation; prod‐
uct sales and distribution, and full‐scale, project man‐
agement solutions.
These Commitment Class, Jones Act ships are de‐
signed to travel at speeds up to 22 knots while maxim‐
izing the carriage of 53‐foot, 102‐inch‐wide contain‐
ers. Cargo capacity will be approximately 2,400 TEUs
(20‐foot‐equivalent‐units), with additional space for
nearly 400 vehicles in an enclosed Ro/Ro garage.
Crowley Maritime is trumpeting the seUng of the main engine
onto its new El Coquí container ship as ‘a critical milestone.’ El
Coquí is the first of two Commitment‐class LNG‐diesel dual fuel
ships being built for the PuertoRico trade. Photofrom Crowley’s
excellentvideo shows the MAN Diesel & Turbine 8S70ME‐C8.2‐GI
engine ‘A‐frame’ beinglowered into place.
Crowley Maritime reported “another critical mile‐
stone” as the main engine has been installed in its El
Coquí newbuild, the first of two Commitment‐class
ConRo (combination container and Roll/On‐Roll/Off)
ships that will be powered by liquefied natural gas to
connect Jacksonville and SanJuan.
The engine is a MAN Diesel & Turbo‐design 8S70ME‐
C8.2‐GI built at the Tamano Works of Mitsui Engineer‐
ing & Shipbuilding in Japan. It was installed in El
LNG-Diesel Dual Fuel
Powerplant Placed in First of
Two Ships –March 30, 2016
http://hhpinsight.com/marine/2016/03/crowley-maritime-sets-first-man-engine/
CrowleyMaritimeSets1stMANEngine. in Dual
Fuel, LNG, Marine, Milestones by Rich Piellisch
Page 7 of 36
8. Issue Date: 12 Apr2016
The engine is a MAN Diesel & Turbo‐design 8S70ME‐C8.2‐GI built at the
Tamano Works of Mitsui Engineering & Shipbuilding in Japan. It was
installed in El Coquí by VT Halter Marine in Mississippi, where a second
Commitment‐class ship, the Taíno, is also under construction.
“This state‐of‐the‐art engine technology will add efficiency while con‐
tinuing to reduce impacts on the environment, one of Crowley’s top
priorities,” Crowley Puerto Rico services senior VP John Hourihan said
in arelease.
Placed in Stages
The engine was placed in stages via a series of heavy lifts by 500‐ton
cranes at the VT Halter yard.
“This ship is basically being built around the engine,” Jensen Maritime
construction manager Patrick Sperry says in a video on the El Coquíin‐
stallation. (Jensen is Crowley’s Seattle‐based naval architecture subsidi‐
ary. Also quoted in the video are Crowley new construction engineering
manager Raymond Bland and construction management VP Ray
Martus.)
Faster
“Crowley is making a significant investment in the Puerto Rico trade to
provide faster transit times while continuing with the ability to carry
and deliver the containers, rolling cargo and refrigerated equipment
our customers count on,” said Crowley Puerto Rico VP Jose “Pache”
Ayala.
The Jones Act‐compliant, Commitment‐class, Jones Act ships are de‐
signed to travel at speeds up to 22 knots while maximizing the carriage
of 53‐foot, 102‐inch‐wide containers. Cargo capacity will be approxi‐
mately 2,400 TEUs (20‐foot‐equivalent‐units), with additional space for
nearly 400 vehicles in an enclosed Ro/Ro garage.
Deep Experience in Puerto Rico
In addition to their main ME‐GI engines (the first to be built in Ja‐
pan; HHP Insight, July 30, 2014), each of the new Crowley ships will
have three MAN Diesel & Turbo 9L28/32DF auxiliary engines.
Crowley notes that it has served the Puerto Rico market since 1954,
“longer than any other carrier in the trade.” The firm has more than
250 Puerto Rico employees, and is “the No. 1 ocean carrier between
the island commonwealth and the U.S. mainland with more weekly
sailings and more cargo carried annually than any other shipping line.”
Continued: LNG- Diesel dual fuel powerplant placed in First of
Two ships.-March 30, 2016 http://hhpinsight.com/marine/2016/03/crowley-maritime-sets-first
The 8S70ME‐C8.2‐GI engine weighs 759 metric tons.
Coquí by VT Halter Marine in Mississippi, where a second Commitment‐
class ship, the Taíno, is also under construction.
There are two MAN diesel engines
installed on/in each ConRo container
ships, each engine hasthe
Dynamic Controls, LTD.
ME‐GI gas‐injection
system manifold
(Refer to page 3‐5 of35)
The DCL ME‐GI gas‐injection system
manifold.
Page 8 of 36
9. G50ME‐C9 Engine Successfully Passes TAT
MAN Diesel & Turbo’s G50 engine has successfully passed its
Type Approval Test at Mitsui in Japan. Upon entering service,
the engine will power the world’s first ethane‐fuelled eco‐
friendly LEG (Liquefied Ethane Gas) carrier – the first of three
such vessels to be built in China by SinoPacific Shipyard for
the German shipowner, Hartmann Reederei. Besides oper‐
ating on ethane,
Finland Breaks the Ice on LNG
Polaris undergoing ouVitting at Arctech Helsinki Shipyard
in January (Photo: Eric Haun)Due for delivery in Q2 2016,
Finland’s new icebreaker Polaris is the world’s first to fea‐
ture dual fuel liquified natural gas (LNG) and diesel propul‐
sion, earning the icebreaking vessel designations as the
Finland’s most powerful and the world’s greenest.
Big Power for the Prince of Wales
MT30 gas turbine lifted into the U.K. Royal Navy’s latest
aircraft carrier HMS Prince of Wales (Photo: John Linton)
The U.K. Royal Navy’s Queen Elizabeth Class aircraft carri‐
ers presently under construction are due to become the
centerpiece of the nation’s defense force. Upon entering
operation, each ship will essentially serve as floating four‐
acre military base capable of travelling up to 500
MAN Diesel & Turbo Inks Deal
with Japan’s JFE
Posted by MichelleHoward
Supply of German manufacturer’s energy‐efficient marine en‐
gines to Japanese market complies with stringent environmen‐
tal regulations
Japanese engine manufacturer JFE has entered a new coopera‐
tion agreement with MAN Diesel & Turbo for MAN's 32/44CR,
35/44DF, 48/60CR and 51/60DF modern four‐stroke engine
types. The agreement applies to marine newbuild projects for
ships to be deployed on Japanese domestic trade routes, and
where the shipyards and shipowners involved are located in
Japan. JFE has produced and supplied medium‐speed diesel
engines since 1964 under the SEMT Pielstick license, which was
acquired by the MAN Group back
in2006.
The aforementioned MAN Diesel &
Turbo common‐rail engines cover a
power range of 3,600 to 21,600 kW
and their well‐proven, state‐of‐the‐
art, fully electronically‐controlled,
common‐rail injection system is
suitable for both heavy fuel oil and
distillate fuels. This technology,
developed in‐house by MAN Diesel & Turbo and fully optimized
for its engines, provides superior performance in terms of fuel
consumption and smoke emissions, especially at part load, com‐
pared to the same engines’ IMO Tier II versions that feature
conventional injection system.
Upon customer request, the common‐railengines can be pro‐
vided with ECOMAP capability, an innovative feature for the
MAN 32/44CR and 48/60CR engines: the flexibility of the CR‐
system permits the engine to be programmed to follow differ‐
ent SFOC/power characteristics, with each having an optimal
efficiency at different load points. Hence, the customer is pro‐
vided with the potential to realize a better fuel economy
through changing the engine’s operating profiles. Especially
aboard vessels with multi‐engine installations, the combination
of such CR engines with an intelligent power management sys‐
tem enables the maximal exploitation of the engines’ flexibility
potential.
The dual‐fuel engines covering the power range of 3,180 to
18,000 kW can be operated in the Otto (gas mode) or Diesel
(diesel mode) cycles from LNG in the former to more tradi‐
tional HFO, MDO or MGO in the latter mode. Significantly,
the dual‐fuel engines can switch between these fuels at any
engine load between 15 to 100 percent maximum continu‐
ous rating (MCR) without disruption to the power supply.
Extremely environmentally friendly operation is achieved in
gas mode when using LNG as fuel with negligible sulphur
(SOx) and particle emissions, while carbon dioxide (CO2) and
nitrogen oxide (NOx) emissions are respectively reduced by
20 and 85 percent compared to diesel mode. Accordingly,
running the engines in gas mode complies even with the
stringent IMO Tier III levels without the need for any exhaust
‐gasafter‐treatment.
Issue Date: 21 Mar 2016
Page 9 of 36
10. Time called on era of ever-bigger container
ships –March 9, 2016
http://hhpinsight.com/marine/2016/03/crowley-maritime-sets-first-man-engine/
The race to operate ever‐bigger container ships could be sail‐
ing towards the finishing flag after a consultancy said that pur‐
suing yet another big increase in size would not be cost‐
efficient.
Up to now, shipping lines have found that the larger the ship
is, the cheaper it is to carry each container. The capacity of the
biggest container ships afloat has risen sharply in the last five
years and more than doubled since 2000.
High quality global journalism requires investment.
But Drewry Shipping Consultants said the next step‐up in size
would impose such significant costs on ports that they would
outweigh the advantages of moving cargo in ever‐larger ves‐
sels.
The research by Drewry comes after lines have poured billions
of dollars since the financial crisis into new, bigger ships, which
has contributed to the industry’s financial woes. Lines have not
only had to find hundreds of millions of dollars per vessel to
buy the ships but have suffered sharp earning declines as the
new ships have created excess capacity, driving down fees per
container shipped.
Denmark’s AP Møller‐Maersk, whose Maersk Line operates
the world’s biggest container ship fleet, warned in Febru‐
ary that the combination of factors was producing market con‐
ditions “significantly worse” than during the 2008‐09 financial
crisis.
The highest‐capacity ships currently afloat — Mediterranean
Shipping Company’s Oscar class, introduced last year — are
395m long, 59m wide and can carry 19,224, 20ft equivalent
units (TEUs) of containers. A 40ft container — the most com‐
monly‐used size — is around two TEUs. Fifteen years ago, the
biggest vessels carried only around 8,000 TEUs.
Tim Power, Drewry’s managing director, said the consultancy
had modelled the overall costs of moving containers on a se‐
ries of ship sizes and had found efficiency savings on the big‐
gest ships currently afloat.
But the company then ran a simulation on a still‐larger behe‐
moth that carried 24,000 TEUs and might exceed the 400m
length and 60m breadth that is the current maximum for to‐
day’sships.
Issue Date: 12 Apr 2016
Page 10 of 36
11. MELBOURNE,Australia—Six years ago, Big Oil was so confident in the outlook for global energy demand that it bet tens
of billions of dollars to turn part of a remote Australian island known for its breeding grounds of rare sea turtles into a
vast gas‐export hub.
Now, the Chevron Corp.‐led Gorgon plant has become emblematicof how quickly the assumptionsthat underpinned
giant energy bets world‐wide have been shaken by falling energy prices.
On Tuesday,Chevron said it had started producing liquefied natural gas—natural gas cooled to a liquid form so it can
be transported by ship—from the Gorgon project and the company expects to send its first cargo to customers in Asia
next week. However,the plant is becomingoperational at a time when investorsare more skittish about the health of
China’s economy,amid an oversupply of major commodities.
Last month,Chevron, which owns nearly 50% of Gorgon,was among 10 U.S. oil companies whose credit ratings were
cut by Standard & Poor’s due to the oil‐price rout. Another of Gorgon’s big investors— Exxon Mobil Corp.—had its
triple‐A corporate rating placed on watch by S&P for a possible downgrade.
Many experts say Gorgon,now estimated to cost $54 billion to build versus an original budget of $37 billion as site
constructionprogresses,offers a scant return on the huge investment with energy prices at current levels. Oil prices
were at around $60 a barrel—and rising—in September 2009, when Chevron, Exxon and Royal Dutch Shell PLC signed
off on the project’s construction.That is roughly 60% above where oil prices sit now.
Gas sales from LNG projects in the Asia‐Pacific region
such as Gorgon are linked to swings in oil prices,
meaning returns on investmentare more vulnerable
to volatility in commoditymarkets than export‐
oriented facilities in the U.S. In 2015, LNG prices in
Asia roughlyhalved.
Energy companies say shareholders will benefit from
a guaranteed revenue stream from Australia, backed
up by a stable regulatory regime. Chevron estimates
gas output from Gorgon will last at least 40 years.
Also, Chevron and its partners have locked Asian
customers including China into deals linked to oil
prices that last up to 20 years, meaning they must
pay for natural gas supply whether they need it or
not.“We expect legacy assetssuch as Gorgon will
drive long‐term growth and create shareholder value
for decades to come,” John Watson,Chevron’schief
executive, said. Spokespeoplefor Exxon and Shell,
which own about 25% of Gorgon each, declined to
comment.
Last year, China’s LNG imports fell 1% as the econo‐
my cooled. At the same time, rapid growth in North
American shale‐gas production sparked fears of a
global energy glut that is likely to take years to clear.
“We’re looking at a world of significantlylower
returns compared to the old days of the LNG indus‐
try,” said Michelle Neo, a Singapore‐based analyst at
energy consultancyFGE.
Gorgon is Chevron’s biggest global bet on LNG and it will produce up to 15.6 million metric tons of LNG a year, plus
enough gas to generate electricity for 2.5 million Australian homes.
Gorgon, along with seven other gas‐export facilities in Australia and neighboring Papua New Guinea, promised to help
redraw the energy map by moving the epicenter of the global gas trade away from the politically volatile Middle East.
About $180 billion was committed by companies including Chevron,ConocoPhillips and France’s Total SA to Australia’s
gas‐export industry between2009 and 2012.
As well as concerns raised by the impact of falling prices on margins, onshore LNG projects are costly because they
require refrigeration tanks and a network of transportation pipelines, while in many cases sea channels need to be
created for LNG tankers to arrive at ports and load up.
In addition,Gorgon’s checkered record since starting construction has undermined confidence in its returns.
The project “is the poster child of rampant cost inflation gone wrong in the Australian LNG industry,” said Neil Beve‐
ridge, a Hong Kong‐based senior analyst at Sanford C. Bernstein. He estimatedthat the project’soverall cost could come
in at close to $60 billion, or roughly $4,000 a ton of capacity—about twice the current break‐even estimate based
Chevron plans more capital spending
cuts– March 9, 2016
http://hhpinsight.com/marine/2016/03/crowley-maritime-sets-first-man-engine/
on currentprices.
Gorgon’s construction on isolated scrubland off Australia’s northwestern coastline coincid‐
ed with a parallel investment boom in other resources such as iron
ore andgold.
The result was that Chevron had to pay more to hire people—from
pipe fitters to welders—while the construction frenzy helped to
drive up the cost of raw material imports such as steel. A strength‐
ening Australian currency inflicted more pain for Chevron, which
had calculated its costs in U.S. dollars.
Barrow Island’s status as a government‐protected nature reserve
since 1910 also brought complications. Chevron and its partners
had to comply with strict environmentalconditions, ranging from
shrouded lights to avoid disturbing the nighttime mating of marine turtles to some of the
world’s toughestquarantine procedures to cut the risk of invasive species being brought in
byworkers.
Chevronexpects the project to add a little more than 200,000 barrels a day to its
production when fully operational.That compares with the company’soutput of 2.67
million barrels a day in the final three monthsof 2015. Gorgon and anotherAustralian LNG
project,known as Wheatstone, together accounted for nearly half the US$15.4 billion that
Chevron invested in oil and gas in 2014.
However, such LNG projectswill welcome long‐term cargo revenue and analystsrecognize
their future potential, despite current price concerns.
“If you look from the point when the investmentdecisions were taken, back between2009
and 2011, then the project economics are pretty marginal and have suffered,” Giles Farrer,
a research director at consultancyWood Mackenzie Ltd. in London, said. “[But] if you look
at the point where we are now, the projects are going to deliver fantastic revenue.”
Issue Date: 12 Apr 2016
Page 11 of 36
12. For moving containers during 2015 than 2014, and the
group reporter a $2.5bn net loss for the fourth quarter of
lastyear.
US railroads including Union Pacific, the largest, have
also recorded big falls in profits for the fourth quarter.
Companies that ship dry bulk commodities are
in precarious financial positions after rates to charter
vessels fell to the lowest levels since the Baltic Dry Index
was set up in 1985 to track such data.
One key question now is how far the sharp falls in prices
for moving goods are a leading indicator of further de‐
mand problems in a global economy shaken by China’s
deepeningslowdown.
The general picture of gloom is countered by conditions
in oil tanker markets. Here, despite some recent falls in
rates, owners can still generate profits by charging
$50,000 a day for a very large crude carrier.
It is also noteworthy that Maersk forecasts growth in
world container trade of 1 to 3 per cent in 2016, not a
downturn in traffic. The air freight market — often quick
to slow down in a downturn — is experiencing modest
growth. US railroads, while losing traffic in many areas,
are benefiting from the booming domestic car market.
Erik Stavseth, analyst at Oslo‐
based Arctic Securities, says de‐
mand to move freight in many
markets appears to be slackening.
But he says that in most shipping
markets the problem is that own‐
ers were too optimistic about
future growth levels and over‐
invested in new vessels.
Mr Stavseth points to the oil
tanker market as one of several
cases in the global economy that
illustrate the delicate balance
between supply and demand.
While the low oil price has stimu‐
lated demand for crude and
hence the need to move it, the
biggest factor in the tanker sec‐
tor’s positive performance is that
the market is short of ships.
“That tanker rates are strong
doesn’t really underline that the
economy is great,” says Mr
Stavseth. “It just underlines that
the supply‐demand balance is
positive.” There is little doubt
that conditions in the market to
move dry bulk commodities are
catastrophic. Average short‐term
rates tocharter
Capesize carri‐
ers — the larg‐
est kind —
were at $2,756
per day on
Thursday, well
below their
roughly$8,000
operatingcost.
Paul Slater, a
shipping fi‐
nanceexpert
based in Florida, says China’s de‐
mand for commodities has
waned not only because of its
economic slowdown but also
because of changes in the coun‐
try’s buying practices. The Chi‐
nese government under Xi Jinping
has brought order to once chaotic
commodity‐buying practices,
greatly reducing China’s stock‐
pile.
But overall demand is flat rather
than declining and few industry
observers believe a surge could
revive the dry bulk ship market,
which has been swamped by ves‐
sel deliveries that expected to
increase the world fleet by 4 per
cent thisyear.
“There’s really an extreme over‐
supply of vessels, built on the
premise that China doesn’t slow
down,” says MrStavseth.
Most industry observers believe
container shipping lines’ prob‐
lems reflect world economic con‐
ditions more closely than trends
in other transport segments. Con‐
tainer shipping lines such as
Maersk and Hong Kong’s Orient
Overseas International, parent
of Orient Overseas Container
Line, carry manufactured and
semi‐finished goods. They are
consequently far more exposed
to worldwide consumer demand.
Maersk’s stumble highlights sluggish state of global
trade –February 11, 2016
http://www.ft.com/intl/cms/s/0/1d744f1e-d044-11e5-831d-09f7778e7377.html#axzz45ehsMWg8
Robert Wright in New York
Issue Date: 12 Apr 2016
Page 12 of 36
13. Container throughout at the Port of
Singapore, the world’s second busiest
container port after Shanghai, was
down 8.7 per cent in 2015 on the rec‐
ord 33.9m 20‐foot equivilant units han‐
dles in 2014. Maersk said container de‐
mand grew by 0 to 1 per cent in 2015.
But even in this market, the problem
has been least as much shipping lines’
over‐optimism in forecasting future
demand and buying big new ships as it
is underlying weakness in demand. N
Drewry, the London‐based shipping
consultants, calculate that shipping lines
earned and average $2,063 per 40‐ foot
container in 2014, but that the figure
fell to $1,570 in 2015, and is down to
$1,548 so far this year.
No sector illustrates the complexities of
the demand swings currently sweeping
freight markets as well as the US’s rail‐
roadindustry.
According to the Association of Ameri‐
can Railroads, the number of carloads
moved in the first five weeks of 2016
fell 15.7 per cent on the same period
last year. Movements of containers and
truck trailers — together known as in‐
termodal traffic, which is counted sepa‐
rately — were 4.8 per cent up.
The carload figures were domi‐
nated by a 30 per cent decline in
coal traffic. This is a reflection of
falling worldwide demand for the
US’s high‐quality metallurgical
coal and power companies’ grow‐
ingpreference
for gas for
generating
electricity.
The low oil
price,mean‐
while, helped
to depress
once‐buoyant
movementsof
oil and refined
products.
Theincrease
in intermodal shipments looks
positive. But that trend reflects
mainly the end of last year’s go‐
slow at US west coast ports,
which held up many container
movements.
While global economic weakness
has sent earnings tumblingat
operators of dry bulk vessels, and
also put container shipping com‐
panies’ profits
under pressure,
a very different
set of factorshas
played out in the
market for mov‐
ing crudeoil.
The crude price
collapse since
mid‐2014 has
increased de‐
mand to move
oil, while ship‐
owners, who
suffered apro‐
longed period of weakness in
2012 and 2013, did not place the
excess orders that dry bulk ship‐
owners and container shipping
linesdid.
Tanker owners have also benefit‐
ed from changes in the oil market
following the crude price rout.
More of the world’s oil supplies
are now coming from low‐cost
producing areas led by the Gulf,
and this makes tanker voyages
longer, and therefore soaks up
more capacity.
But there are some signs of weak‐
ness in the tanker market. For
example, shipowners face a sud‐
den surge of competition with
the return to the market of Iran’s
oil tankers, following the lifting of
internationalsanctions.
Air freight is particularly vulnera‐
ble in economic downturns.
When demand softens, shippers
tend to move freight from expen‐
sive aircraft to far cheaper con‐
tainerships.
Data from the International Air
Transport Association, the air‐
lines’ representative body, sug‐
gest such a process might be un‐
Continued—Maersk’s stumble highlights sluggish state of
global trade –February 11, 2016
Issue Date: 12 Apr 2016
Page 13 of 36
14. der way. They show a gap open‐
ing up between world trade
growth and the more sluggish
expansion of the air cargo sec‐
tor.
Trade nevertheless continues to
grow, albeit very modestly.
Traffic in December 2015 was
0.8 per cent up on thesame
month in2014.
Conditions for air cargo opera‐
tors, however, have deteriorat‐
ed sharply. Record deliveries of
large passenger jets with sub‐
stantial cargo holds meant that
capacity to move air freight was
6.5 per cent up year‐on‐year in
December. Only 43.9 per cent of
available capacity was used.
Continued—Maersk’s stumble highlights sluggish state of
global trade –February 11, 2016
These difficult conditions were
the backdrop to Boeing’s decision
last month to slow production of
its 747 jumbo jet, which sells
mainly to cargo operators.
Issue Date: 12 Apr 2016
Page 14 of 36
15. The Energy Atlantic, a 290-
metre tanker steaming
slowly through the Gulf of
Mexico, is about to make
history. It is scheduled to
arrive on Tuesday
at Cheniere Energy’s Sabine
Pass liquefied natural gas
plant on the coast of
Louisiana, to be loaded with
the first cargo of LNG to be
exported from the “lower
48” contiguous states of the
US.
The shipment is a
momentous event for
energy markets, marking
the arrival of the US as a
gas supplier to the world.
The plunge in oil prices since
the sum- mer of 2014 has
dragged down the value of
LNG, which is often sold on
crude- linked contracts, and
damped the excite- ment
over US exports. The
economics of shipping gas
from the US were compel-
ling two years ago, but are
now margin- al.
Deteriorating market
conditions have put the
brake on any new
investments in US LNG.
Even so, US LNG exports
are likely to have a
significant impact, holding
down energy costs for
consumers in Europe, Latin
America and Asia. They will
also provide tough
competition for anyone
hoping to build rival LNG
plants, such as the
proposed projects in east
Africa, the west of Canada,
or Russia. By the end of the
decade, the US is likely to be
the world’s third-largest
exporter of LNG, after Qatar
and Australia.
Combined with the new
supplies
from Chevron’s huge Gorgon
and Wheat- stone projects in
Australia, which are
scheduled to come on
stream this year, exports
from the US are making it a
buyers’ market for LNG.
“There is an awful lot of
LNG sloshing
around the world at the
moment, with even more to
come,” says Frank Harris of
Wood Mackenzie, a
consultancy. “And that is
putting downward pressure
on prices.”
A decade ago, this prospect
seemed wildly unlikely. US
gas production was in
decline and by the 2010s
the country was expected
to be a large importer of
LNG, not an exporter.
The shale revolution, the
result of advances in
production techniques that
made it possible to extract
gas at commercially viable
rates from previ- ously
unyielding rocks, meant that
US production started rising
again in 2006, and since
2011 it has been break- ing
new records every year.
Charif Souki, Cheniere’s
visionary founder who
was ejected
from the
company at the
end of last
year, was one
of the first to
see the
potential for
LNG exports
from the US.
In 2010, he
submitted the
first application
to regulators to
convert the LNG import
terminal that Cheniere
had built at Sabine Pass,
which was being barely
used because US
domestic gas production
was so strong, into a
liquefaction plant.
Many in the industry were
skeptical that the project
could be made to work but
the plan took a decisive
step for-
most of the production from
Sabine Pass’s first “train”,
as LNG production units
are known. After that
contract was signed, the
trickle of proposals for
similar projects turned
into a flood.
The US Department of
Energy has received
applications to export
LNG
about 60 per cent of the
entire gas production of
the US.
So far, however, just five
plants have started
construction: Cheniere’s
Sabine Pass
and its
Corpus
Christi
project in
Texas;
Freeport
LNG, also
in Texas;
Cameron
LNG in
Louisiana;
and Cove
Point LNG,
on the east
coast in
Maryland.
progress because they
were fast enough at
signing up customers on
long-term contracts that
guarantee their revenues.
Since the end of 2014
those customers, mostly
utilities in Europe and
Asia, have been reluctant
to make any further
commitments.
ward in October 2011 when Britain’s BG
Group signed a 20-year contract to buy The price of
LNG delivered in north- east Asia, including Japan
and South Korea, the
world’s two largest mar-
kets, has fallen along with
oil. It has dropped to
about $6.65 per million
US will be a gas supplier to the world by
tomorrow– January 10, 2016
http://hhpinsight.com/marine/2016/03/crowley-maritime-sets-first-man-engine/
British thermal units, just a
third of its price of almost
$19 per mBTU two years
ago, according to Argus, the
information service.for 54 projects. If they all went ahead,
they would have the capacity to liquefy At that price,
with benchmark US gas at about $2.40 per mBTU, plus
liquefaction costs of $3 to
$3.50 per mBTU, plus
transport at about $2 per
mBTU, LNG from Louisiana
or Texas does not look
commer- cially attractive.
Similar calculations apply in
Europe. Bench- mark UK
National Balancing Point gas
has dropped by almost a half
since 2013 to about $5.20 per
mBTU, meaning that LNG
exports from the US to Britain
are unlikely to cover all of their
costs.
Since 2013, most of the new
LNG projects launched
worldwide have been in the
US. However, the
deteriorating economics
make it unlikely that any new
plants will be
Those projects have been able to make
approved for a
while.
The plants that have already
started con- struction,
though, are highly unlikely to
be stopped. This is because
the companies buying LNG
from one of these plants have
typically made firm
commitments for 20 years
under which they have to pay
the charges they have
promised, even if they do not
use the capacity.
The US LNG projects will add
to global over- supply.
Bernstein Research has
estimated that the world’s
Issue Date: 12 Apr 2016
Page 15 of 36
16. Continued—US will be a gas supplier to the world by
tomorrow-January 10, 2016
http://hhpinsight.com/marine/2016/03/crowley‐maritime‐sets‐first‐man‐engine/
the next three years rise by
90m tonnes per annum,
which is about 35 per cent of
present demand.
Nikos Tsafos of Enalytica, a
research com- pany, says US
LNG should help hold gas
prices down for a few years at
least.
When the global oversupply is
finally ab- sorbed by rising
demand, the next wave of
plants in the US, including
projects backed by
ExxonMobil and Kinder
Morgan, will be poised to
benefit.
There are other promising
potential new sources of
LNG in the world, including
the projects to develop large
gas discoveries
Issue Date: 12 Apr 2016
Page 16 of 36
17. World leaders are
hammering out ways to
cut their countries’ carbon
emissions in Paris. But
what about all the carbon
dioxide—from planes and
ships—emitted outside any
one coun- try’s borders?
Airlines and the global
maritime indus- try count
among the world’s biggest
CO2-emitting industries.
Unlike emis- sions from
power plants or passenger
cars, CO2 from planes and
ships ply- ing international
routes aren’t tabulat- ed as
part of any one country’s
total emissions. Those
totals are the main subject
of haggling in Paris this
week and next, aimed at
coming up with a concrete
plan to limit man-made
climate change.
That omission is ratcheting
up pres- sure on
negotiators in Paris to
figure out how to handle
that uncounted CO2, and
whether to force the
industries’ global
watchdogs to come up with
a credible, separate plan to
rein in air and sea
emissions.
One big challenge: It’s hard
to peg just how much CO2
the two industries are
emitting in the first place.
A recent European
Parliament report
estimated between 3 and
4 of global, man-made
CO2 emissions came
fro
m
inte
r-
national commercial flights
and ship- ping. Left
unchecked amid efforts to
reduce emissions
elsewhere, that share
could grow to as much as
40 of global emissions by
2040, the re- portwarned.
The International Civil
Aviation Organi- zation, a
United Nations body, puts
the current contribution
from internation- al aviation
to global C02 emissions at
1.3. Its shipping
counterpart, the
International Maritime
Organization, said in a
report last year that from
2007 to 2012 such
emissions reached an
average 3.1 of the global
output.
The issue hasn’t been at
the top of the climate-
change agenda among
negoti- ators in the
yearlong run up to the
Paris talks. But the threat of
a more forceful approach
to reining in air and sea
emission has long
shadowed those industries.
It is also flaring anew as an
irritant for environmental
groups, which say
executives haven’t done
enough to come up with a
plan on their own.
“Progress has been
insufficient,”
said Andrew Murphy, a
representative for
Transport & Environment,
an envi- ronmental
advocacy group.
A preliminary paragraph in
the draft of the Paris
accord—a document
global leaders hope will
spell out a final, concrete
plan—could require that
countries work through the
U.N. agencies to slice up
emissions from such
international trips by air and
sea and apportion them to
individual coun- tries.
The ICAO and IMO have
taken leading roles in
trying to broker the details
of any agreement, and
representatives of both
are in Paris now.
Countries with rapidly
growing air- lines, or those
heavily dependent on
tourism, argue any moves
to limit flight emissions will
favor more ma- ture
markets, such as those in
the U.S. and Europe. The
airline industry, meanwhile,
has fought against what it
worries would be a
patchwork of national
regulations and taxes that
would govern its emissions.
The European Union has,
for instance, threatened
that the lack of a global
agreement on international
flight emissions could spur
it to revive efforts to
include them in its carbon
cap-and-trade mechanism,
something carriers so far
successfully have fought.
“We are
supportive of
ICAO putting
together a
framework that
gov- erns the
For the
shipping
industry,
the IMO
has
imposed an
efficie
ncy
standard
for
ships built
since
2013.
Out-of-Bounds CO2 Elutes Talks—by Robert Wall and Costas
Paris– December 2, 2015
http://www.wsj.com/articles/out‐of‐bounds‐co2‐clouds‐emissions‐tallying‐1449107855
Carbon‐dioxide emission from ships don’t count toward national totals.Issue Date: 12 Apr 2016
Page 17 of 36
18. Environmental legislation is
the key factor currently im‐
pacting the marine segment.
While ships were traditionally
powered by Heavy Fuel Oil
(HFO), which produces high
levels of harmful pollutants,
including sulphur dioxide
(SOx), international law now
states that shipping fuel can
contain no more than 3.5%
sulphur. Further, the limit in
Emission Control Areas (ECAs)
or Sulphur Emission Control
Areas (SECAs), which current‐
ly include coastal areas such
as the Baltic Sea, North Sea
and the waterssurrounding
North America and theCarib‐
bean, is 0.1%.
LNG is one of the only fuel
sources able to comply with
these strict limits and, with
the majority of vessels oper‐
ating in coastal areas, the
need for LNG‐compliant solu‐
tions is set to become a must
for operators in the very near
future. Ten years from now,
the majority of vessels will
run on LNG and conventional
vessels will have very limited
trading options. This supports
the CapEx argument – while
you may have to pay more
for your LNG‐compliant solu‐
tions in the short term, there
will be significantly more val‐
ue to be gained from it down
theline.
Against this backdrop, SMi’s
Gas as a Marine Fuel master‐
class will examine the grow‐
ing demand for LNG as a ma‐
rine fuel as a result of an in‐
creasing emphasis on envi‐
ronmental performance and
how to best prepare for it by
examining how this isbe‐
ing implementedworld‐
wide, with focus on recent
developments in Europe and
the US. The full‐day pro‐
gramme will also explore the
recent technical and regula‐
tory developments and how
you can best adapt to these
changes.
“LNG is one
of the only
fuel sources
able to
comply
with these
strict
limits…”
The Majority of Shipping Vessels are Set to Run on LNG within
10 years, with Conventional Vessels having very Limited
Trading Options | Gas as a Marine Fuel . Dec. 2015
Source: E-mail from energy@semiconference.co.uk
Gas as a Marine Fuel | 3rd
December 2015, Central
London, UK
Register online to network
with latest attendees in-
cluding ExxonMobil:
www.smi-
online.co.uk/2015gasmari
nefuel.asp
Alternatively,con‐
tact Martin Hughes ontel
+44 (0) 20 7827 6078or
email mhughes@smi‐
online.co.uk
The Baltic Sea / North Sea / English Channel Environmental
Control Area came into force on January 1st 2015. All vessels
travelling in these areas must now use low sulphur fuels. This
master class will examine the issues around one of these
“clean” fuels – LNG. Europe is not alone in requiring these
improved environmental regimes and the master class will
also touch on other areas, particularly North America who
also received their first gas fuelled vessel late in 2014.
This master class will examine the growing demand for gas as
a marine fuel resulting from increasing emphasis on environ‐
mental performance and how this is being implemented
worldwide.
SMi’s presents its masterclass on...Gas as a
Marine Fuel 3rd Dec 2015
www.smi‐online.co.uk/2015gasmarinefuel.asp
Issue Date: 12 Apr 2016
Page 18 of 36
19. First LNG Containership Transits the Panama
Canal-November 3,2015
http://www.marinelink.com/news/containership‐transits400347.aspx
The world’s first LNG‐powered container vessel, TOTE Maritime’s Isla
Bella, transited the Panama Canal October 30, marking a milestone not
only for the maritime industry, but also for the Canal as it nears the
completion of its expansion scheduled to open in 2016, the Panama Canal
Authority (ACP)announced
The 3,100 TEU capacity, 764‐foot‐long American‐
flagged Isla Bella is the first of two Marlin Class
containerships contracted by TOTE Maritime and
built by General Dynamics NASSCO.Delivered last
month the LNG‐powered vessel features increased
fuel efficiency and reduces nitrogen oxide emissions
by 98 percent, sulfur oxide emissions by 97 percent
and carbon dioxide emissions by 76 percent.
“The Isla Bella is a true engineering feat,” said
Panama Canal Administrator/CEO Jorge L. Quijano.
“We are honored that this vessel, with its unique
technology, transited the Canal.”
Isla Bella is scheduled to begin providing freight
service in the fourth quarter of 2015 between
Jacksonville, Fla. and San Juan, Puerto Rico.
Upon completion of the second Marlin Class
containership, Perla del Caribe, launched in August
2015 and scheduled to enter service in the first
quarter of 2016, the vessels will be the largest and
most environmentally friendly LNG‐powered dry
cargo ships in theworld.
Isla Bella transiting the locks at Mira Flores
(Photo courtesy of the Panama Canal Authority)
Issue Date: 12 Apr 2016
Page 19 of 36
20. “ABS has played a fundamental role
in supporting the ambitions of the
maritime industry as it moves to
embrace the opportunity of LNG as
fuel,” said ABS Chairman, President
and CEO Christopher J. Wiernicki.
“This milestone builds upon our work
to provide owners with the guidance
and support they need to move ahead
with shipbuilding projects that allow
them the flexibility to respond to
changes over the lifetime of their
vessels.”
According to ABS, who published the
Guide for LNG Fuel Ready Ves- sels
in 2014, its LNG-Ready endorse-
ments allow shipowners and yards the
flexibility to limit initial investment
while planning for the future conver-
sion to dual fuel or gas-powered
combustionengines.
Rob Grune, senior vice president and
general manager petroleum services
Posted by Eric Haun
Four-ship series built to ABS class is
first to take advantage of LNG-Ready
approval for potential conversion to
LNG fuel in the future
ABS has issued the first LNG-Ready
approval in accordance with its Guide
for LNG Fuel Ready Vessels to a
product tanker, granting LNG-Ready
Level 1 approval and approval in
principle for Crowley Maritime Cor-
poration’s new Jones Act tank-
er Ohio, the first in a series of four
ships built by Aker Philadelphia
Shipyard
By achieving compliance with the
ABS Guide for LNG Fuel Ready
Vessels, Crowley has the option to
convert the product tankers to LNG
propulsion at a later date having
already been granted a conceptual
review.
for Crowley, said, “As our business
continues to shape itself to better
meet the requirements of our custom-
ers, these vessels that stand ready and
able to operate on a cleaner, alterna-
tive fuel source are our way of antici-
pating future demands.”
Crowley will christen Ohio today at
the Tampa Cruise Terminal. The
50,000 dwt, 330,000-barrel-capacity
ship has already made two voyages to
date carrying clean petroleum prod-
ucts to Florida.
The three remaining product tankers
are expected to be delivered through
2016.
ABS Deems Crowley Product Tanker ‘LNG-
Ready’- November 3, 2015
Source: (http://www.marinelink.com/news/lngready-crowley-product400340.aspx)
Issue Date: 12 Apr 2016
Page 20 of 36
21. FleetSize
Rows of shipping containers at the freight terminal at Piraeus port in Greece last week. PHOTO: SIMON
DAWSON/BLOOMBERG NEWS
Total Fleet Value
$497Billion
TotalFleet
20,134Ships
Fleet value, in billions
Shipping Industry Fleet
Source: The Wall Street Journal | Wed. July 22, 2015
|
Issue Date: 12 Apr 2016
Page 21 of 36
35. and the introduction of a pas‐
sive partial reliquefaction
system add to these LNG ves‐
sels’ efficiency and further
help to reduce the unit
freightcost.
Over the next 8 months DSME
will install the cargo contain‐
ment system capable of
transporting 174,000 m3 of
LNG and put the ship and its
equipment through the re‐
quired tests and trials.
Posted by EricHaun
Teekay’s first M‐type, Elec‐
tronically Controlled, Gas
Injection(MEGI)‐powered
LNG vessel, Creole Spirit, was
floated out at the Daewoo
Shipbuilding & Marine Engi‐
neering (DSME) shipyard in
South Korea on May 29. The
vessel is on charter contract
with Cheniere and is expected
to enter service early 2016,
making it the most efficient
LNG ship on the water with
the lowest unit freight cost in
the worldfleet.
The two‐stroke engine tech‐
nology provided by MAN Die‐
sel, the MEGI propulsion sys‐
tem, is driving a step change
in global LNG vessel efficien‐
cy. While the most efficient
Dual Fuel Diesel Electric
(DFDE) propulsion systems
have daily consumptions in
the region of 125‐130 metric
tons including sea margin, the
MEGI vessels have a con‐
sumption of 100 metric tons.
That being said, it is not just
the fuel consumption that
makes the two‐stroke story
so compelling. The reduc‐
tion in the number of cylin‐
ders requiring overhaul, the
reduction in the size of the
complex electricalsystems
The two-stroke
engine
technology
provided by MAN
Diesel, the MEGI
pro- pulsion
system, is driving a
step change in
global LNG vessel
efficiency.
Creole Spirit (Photo: Teekay)
DSME Launches LNG Carrier for
Turkey—June 10, 2015
Source: http://www.marinelink.com/news/launches-carrier-teekay392752.aspx)
Special points of interest:
MAN Diesel & Turbo has marked the final phase of the EU-
funded Helios project by hosting an industry conference at its
PrimeServ Academy in Copenhagen.
The Motorship attended the event, at which the results of the Heli-
os project, aiming to develop a research platform for an LNG-
fuelled two-stroke marine Diesel engine. Helios is part of the EU
7th framework programme, and MAN as lead organisation was
partnered by Germanischer Lloyd, Kistler Instruments, Sandvik
Powdermet, TGE Marine Gas Engineering and four universities -
Uppsala, Erlangen, Jonkoping and Lund. (continued on 3 of 17)
MAN Hosts Final Phase of EU LNG Initiative–
November 27, 2013
MAN Diesel & Turbo ME‐GIengine
The MAN Diesel MEGI
propulsion system, is
equipped with Dynamic
Control’s:
Gas Supply System
for ME‐GI
gas‐injection
systemManifold.
Refer to pages 3,4,5 of30.
Issue Date: 12 Apr 2016
Page 35 of 36
36. The project centred around
MAN's ME-GI research engine
and it was enlightening to see the
two different approaches to gas-
fuelled two-stroke developments
following our visit to Wartsila in
Trieste two weeks ago. MAN's
high pressure gas system is un-
doubtedly more complex than the
competing low-pressure technolo-
gy, burns a higher percentage of
pilot fuel, and will need EGR or
SCR in order to meet IMO Tier
III emissions limits. However, it
appears to be engineered with an
even more highly fail-safe ap-
proach to problems with the gas
system and a simpler retrofit pos-
sibility. In addition, the company
says that it offers shipowners the
most flexible choice of fuel possi-
ble, and although NOx emissions
are currently above Tier III limits,
methane slip is very low, so car-
bon emissions - and hence EEDI -
implications are highly positive,
the engine is tolerant to variations
in gas quality, and it can run on
gas at loads of 10% or lower.
MAN is confident that with fur-
ther development the pilot fuel
percentage can reduce further, and
NOx emissions can be cut.
The Helios project has explored
wider aspects of LNG as fuel in
Europe, including availability,
pricing and infrastructure, as well
as lubrication and wear issues
resulting from using ultra-low
sulphurfuels.
The ME-GI engine has already
attracted orders, the first being for
TOTE container ships, which was
not expected by MAN, as
well as Teekay LNG tank-
ers and for two larger con-
tainer ships for US compa-
ny Matson. No doubt the
low price of LNG in North
America has influenced
these orders. MAN ex-
pects the market for dual
-fuel two-stroke engines
to grow rapidly as the
lower ECA sulphur lim-
its come into force.
Continued—MAN Hosts Final Phase of EU LNG
Initiative– November 27, 2013
http://www.motorship.com/news101/lng/man-hosts-final-phase-of-eu-lng-initiative
!
Issue Date: 12 Apr 2016
Page 36 of 36
