Panos Mitrou - Marine Technology & Innovation Manager, Hellenic Lloyd’s – Greece

1. Small scale LNG in the East Med,
Projects & Solutions - The Poseidon Med II case
Panayiotis Mitrou
Technology & Innovation Manager, Marine & Offshore
South Europe
3rd Eurasian Natural Gas
Infrastructure Conference
Grand Visconti Palace
Milan, 30- 31 May 2017

2. LNG Prospects and… Drivers
Policies Economic
• Favourable
fundamentals
• Low Extraction cost
• Significant
investment made
Availability
CO2 SOx PMNOx
• Abundance of
Resources
• Shale Gas
• Political Risk hedging
Natural gas is the only fossil fuel that can meet all current regulatory
requirements and in conjunction with other technologies, it will most probably
remain competitive in the decarbonisation era.

3. • Lack of Flexibility
• Short term Market absent
• Shale Gas leading to a new pricing Era
• Take or Pay / volume constrained contracts
• Pricing related to Oil price
• No means to trade small parcels
Natural Gas Market Limitations
LNG is in need of a market as mature as those of
other fossil fuels, based on an efficient supply
chain

4. • Islands
• Seasonal Consumption
• Isolated Regions
• New Markets / Expansion
• LNG as Fuel / Transportation
• Inland Waterways
• Environmentally Sensitive Areas
• Spot price hedging
• Flexible Power Plant solutions
Small Scale Market Needed
Import - Operational
Import - Under Study or
Proposed
Import - Under
Construction
Export - Operational
Export - Project

5. LNG Small Scale Global Fleet
- Lack of Ships

6. LNG Small Scale Designs

7. Flexible Gas Carriers
LNG / Ethylene / LPG
 Hedged Employment Risk
• Benefit from more expensive segments
• Improved future proofing performance
• Dual Fuel Engine
• Multipurpose operations (Bunkering ,
Ship to ship Cargo)
• Grade change constraints
Bridging The Gas Markets
Shale gas worlwide spread signifies
opportunity for both LNG and NGLs trades

8.  Small Scale FSRU offer low CAPEX
storage solution
Flexible, portable easy to install
Floating LNG Power Stations
Small , Low cost, Super efficient thanks to CCGT
Other Small Scale Solutions
100MW Estrella Del Mar II

9. The EU Mediterranean Case
– LNG as Fuel
3
Projects
100
Partners
125 million
Euro
3 Projects 100 partners
125 million
euro

10. 10
Poseidon Med II
Piraeus
Patra
Heraklion
Igoumenitsa
Limassol
Venice
3 Countries
6 Ports
Greece
Italy
Cyprus
Duration: Jun.2015 – Dec.2020
Budget: ~€53M
Coordinator: DEPA
Partners 26
Co-financed: 50% by EU - CEF
Connecting
Europe
Facility
0

11. Where are we now … Poseidon
Med II
Roadmap to LNG bunkering operations
in East Med
 Planning Analysis
 Implementation Study,
 Detailed Pilot Studies
 Regulatory Gap Analysis
Proposal
 Detailed Safety Assessments
 Detailed Technical Studies
 Works
 Regulatory action follow up

12. Poseidon Med II
Activities
vessels & port
studies
regulatory
framework
establish synergies

13. Bunkering Safety: solutions offered from A to Z
Hazard identification
studies
Navigational
simulation
Exclusion
zones

14. Hazard Identification Studies (HAZID)
• Scope
Evaluate potential bunkering operation scenarios
Assess bunkering fuel capacity (current & future)
Port-vessel interaction
Risk assessment
Recommendations & further actions
• Methodology
 technical workshops
On-site surveys
Risk ranking methodology

15. 18
Navigational simulation
R
u
n
Vessel
Arrival /
Departure
Tugs (Max
BP used)
Wind
(kts)
(gusting)
Waves (Hs,
T, Dir)
Current
(kts)
1
Feeder Tanker
(Loaded) Arr 2 x 70T 20 / 090°
2.0 / 6.3 /
070°
-
2
Feeder Tanker
(Loaded) Arr 2 x 70T 30 / 270°
0.3 / 2.9 /
250°
-
3
Feeder Tanker
(Loaded) Arr 2 x 70T 30 / 090°
2.0 / 6.3 /
070°
-
4
Feeder Tanker
(Ballast) Dep 2 x 70T 30 / 090°
2.0 / 6.3 /
070°
-
5
Feeder Tanker
(Ballast) Dep - 30 / 270°
0.3 / 2.9 /
250°
-
6
Bunker Barge
(Loaded)
Arr - 25 / 090°
2.0 / 6.3 /
070°
-
7
Bunker Barge
(Loaded)
Arr - 25 / 270°
0.3 / 2.9 /
250°
-
8
Bunker Barge
(Ballast)
Dep - 25 / 270°
0.3 / 2.9 /
250°
-
9
Feeder Tanker
(Loaded) Arr 2 x 70T 25 / 270°
2.5 / 7.2 /
250°
2.0 /
125°
1
0
Feeder Tanker
(Loaded)
Arr 2 x 70T 25 / 090°
2.5 / 7.2 /
070°
2.0 /
125°
Feeder vessel
performing
bunkering
operations
LNG barge vessel
performing
bunkering
operations
5 ports/ 90
scenarios

16. 21
Regulatory framework: from theory to
legislative Action
Work with Ministries
Quality & Quantity
Training & competence

17. 22
Work with Ministries
 Current legislation record
(national, international)
General & special port regulations
Synergies with key stakeholders
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Εκπαίδευση 966Β.28.05.2015.ΤροποποίησηΣυμπλήρωσηΤουΚανονισμούΣπουδ
ώνΤωνΚέντρωνΕπιμόρφωσηςΣτελεχώνΕμπορικούΝαυτικού.Κ.Σ_ΚΕΣ
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Θέματα μεταφοράς,
φορτοεκφόρτωσης κτλ
επικίνδυνων υλών
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ήΔιάθεσηΚαυσίμωνΣεΣκάφη
Θέματα μεταφοράς, φορτοεκφόρτωσης κτλ επικίνδυνων υλών272Α.16.12.1996.ΚανονισμόςΦόρτωσης.ΕκφόρτωσηςΔιακίνησηςΚα
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αλάσσης
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Θέματα Ελέγχου και
Ποιότητας καυσίμου
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Υποδομές, διαδικασίες και
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1389Β.10.09.2004.ΠεριβαλλοντικόςΚανονισμόςΛειτουργίαςΛιμένα
Πειραιώς
Θέματολογία Εθνική

18. 23
LNG Quality & Quality
Design an effective
verification process
Methodology/tools/technolo
gies
Best practices/case
studies
Review current
rules/regulations
Key considerations on LNG QnQ
• Quality of LNG is NOT uniform globally
• No standards regarding LNG composition
• No fixed agreement to characterise LNG
quality for end use
• Variances in quality do impact engine
operations

19. 24
Training & Competence
 Target: crew, port & terminal staff, truck
drivers, LNG operators, management team
Training modulars focusing on
Operating/regulatory framework &
procedures
Roles/responsibilities
Equipment check/system connections
Safe transfer/monitoring processes
Emergency situation response

20. • LNG Supply Infrastructure
• LNG Supply Scenarios to Port of
Vancouver
• LNG Bunkering Operations
• LNG Bunkering Assets
• LNG Bunkering System
• LNG Bunker Quantity Measurement
• Port Control Operations
• STS Bunkering Operations at
Location
26
Latest LR Work- The Vancouver Study
Damage Impact – Alternative
Equivalent Side Protection

21. Screening markets
For potential demand
and likely supply to
determine weather
there are profitable
opportunities
Analysing assets
To ensure they are fit
for the market
purpose they are
intended
Advising on
Life extension of
assets and their
potential for
conversation linked to
market analysis
Optimising asset &
operational
performance
by maximising asset
productivity to
increase revenues or
increasing efficiency
to reduce costs
Using its global data
base
From classifying
vessels and reviewing
100s of projects over
many years
Integrating
technical and financial
expertise in one co-
ordinated piece of
analysis
27
LR services

22. 28
LR services
Analysis inputs: engineering & market
Data entry
Financial
structuring
analysis
Operating incomeInvestment
Mapping
design to
market
purpose
Design review
(volume,
capacity, rates)
Operations
assessment
(people &
systems)
Vessel
condition
assessment
Commercial
contracting
analysis
CostsRevenue
Valuation & key sensitivities → investment decision

23.  Natural Gas (LNG) seems to be taking its place as
the fossil fuel of preference,
 A number of barriers still need to be overcome,
 Gas Market still constrained, small scale missing,
 Need to attain a supply chain cost comparative to
the one of other fossil fuels
Reason Lack of ships
 We as LR are here to assist you with
Defining the right missing links of the supply chain
including technology and ships
Ensure Safety and Efficiency throughout your supply
chain, port operations
Support you with funding proposals under EU or other
instruments
Small Scale LNG, key RemarksSmall-scale LNG

24. 13 LNG Terminals ,
8 in operation
1 FSRU (Israel)
5 Under development
Regions with no access to Gas grid
(Western Greece, Southern Turkey, Cyprus)
Favourable LNG Bunkering Fundamentals
(Liner and Ropax Routes)
4 proved fields amounting 70 tcf of Gas,
Egyptian Export terminals
(Envisaged LNG price @ 5 USD/mmBTU in
2020)
Island states (Malta, Cyprus, Greece)
Societal Support, Stringent policies
The Case of East Med
Develop a healthy sustainable LNG
bunkering and small scale market,
Zohr
Tamar
Leviathan
Afrodite

25. Thank you
Panayiotis Mitrou
Technology &
Innovation Manager,
South Europe