Autumn 2010 MESSAGE FROM GENERAL …

The Newsletter of theSociety of International Gas Tanker

and Terminal Operators Ltd

Autumn 2010Issue 24 www.sigtto.org

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

‘Gas Handling Principles’ update . . Page 3

New members . . . . . . . . . . . . . . . Page 5

Streamlining dues process . . . . . . . Page 5

Low-pressure fender option . . . . . . . Page 6

SIGTTO Meetings . . . . . . . . . . . . . Page 7

IGC Code revision . . . . . . . . . . . . Page 8

Steam engineer competency . . . . . . Page 9

Update on piracy threat . . . . . . . . . Page 9

Use of LNG as ship fuel . . . . . . . . Page 10

Gas carriers and VOCs . . . . . . . . Page 11

LNG and LPG in Indonesia . . . . . Page 12

. . . continued on page 3

MESSAGE FROM GENERAL MANAGER

The holistic approach to safetyThe Deepwater Horizon drilling rig tragedy provides a timelyreminder of the need for management to take a broad view ofall aspects of safety and to remain unswayed by pressures toconcentrate overly on individual aspects

brought up on this concept and it hasproved to be a powerful and successfultool in raising awareness of the role ofbehaviour-based safety.

However, we must stay aware of itslimitations. The triangle is a statisticalconstruct which, as originallypostulated, said that for every seriousinjury in a workplace there were 29accidents causing minor injury and 330accidents or near misses which causedno injury. The theory behind the conceptis that by addressing the issue of nearmisses and accidents which cause noinjury, because the statisticalrelationship holds, the frequency ofminor accidents and accidents leadingto serious injury can be reduced.However, this conclusion is only true ifthere is a direct causal link between theincidents and near misses and theaccident that causes the serious injury.If there is a false correlation, the theoryfails.

A good example to illustrate this pointis the grounding of the very large crudecarrier (VLCC) Amoco Cadiz on thecoast of France in 1978. The initialmechanical failure in the tanker’ssteering gear, which ultimately led tothe loss of the vessel and the spillage of

Since publication of the previous issueof the SIGTTO newsletter, the worldnews, at least in the energy andenvironmental sectors, has beendominated by the Deepwater Horizondrilling rig disaster in the US Gulf. Whilstit is inappropriate to make any comment

about cause and culpability (if any) priorto a full and proper investigation, thereare a couple of observations that can bemade.

Firstly, the real tragedy of the piecewas the loss of 11 lives in the initial wellblowout and subsequent fire on the rig.Our deepest sympathy goes to thefamilies of those who perished - theirloss transcends any other losses fromthe incident, be it the livelihoods offishing folk, holiday trade on thebeaches, etc. This point needs to bereiterated because it seems to me thatmore energy has been expended on the

oil spill consequences than on any otheraspect. I am not saying these otherissues are unimportant, but some of thebalance seems to have been lost.

Secondly, the work of the engineerswho, ultimately, were successful incapping the Macondo Prospect

wellhead at a depth of over 5,000 feetdeserves special mention. Whilst allwould agree that it would have beenbetter if their skills had not been neededin this way, the fact that they respondedto the most amazing technicalchallenges, and were successful, is trulyawe-inspiring. I hope this does not getforgotten in the legal morass which isinevitably to follow.

Having started off this commentarywith a serious industrial accident, mythoughts lead on to the well-knownsafety triangle, or Heinrich’s triangle. Awhole generation of operators has been

Good operating procedures and an effective training regime must be backed by sound design






New members . . . . . . . . . . . . . . . Page 5
























2

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her cargo of 250,000 m3 of crude oil, most of which endedup on the beaches of Brittany, was caused by bad engineeringdetail in the design of studs in a flange in the steering gear’shydraulic system. It is clear on examination of the circumstancesthat no amount of effort in terms of behaviour-based safetytraining for the ship’s crew could have prevented this accident.In other words, there was no causal link.

So, whilst the concept of Heinrich’s triangle has a role toplay in promoting behaviour-based safety, too great aconcentration on it can have malign effects if it results inmanagement not paying attention to the possibilities ofmajor accidents for which there is no causal link to behaviour-based safety. Examination of major accidents shows thattheir causes often lie more in the area of failure of what I callprocess safety. This can best be described as the creation ofa safe operating environment achieved by a combination ofsound design, good operating procedures and practices,effective training of operators and good maintenancepractices.

It has often been said that our industry’s licence to operateis heavily underpinned by our excellent safety record.Therefore, the maintenance of this record is critical to ourfuture success. Our best hope of achieving a continuation ofour good safety record is by ensuring that responsiblemanagement keeps a broad view of all aspects of safety anddoes not allow its vision to be distorted by an over-concentration on individual aspects.

The first phase of SIGTTO’s role in co-ordinating the rewriteof the International Gas Carrier Code (IGC Code) has drawnto a close with the submission to the IMO Secretariat of therevised document in August, on schedule. It has been anamazing, even humbling, experience to witness thecommitment and effort by so many in the industry to conductthis overhaul of a document which forms the cornerstone ofthe design of gas carriers. I would like to record here mythanks to all those who have contributed to the work. Furtherdiscussion of the next stages of the IGC Code revision processcan be found on page 8.

SIGTTO’s spring 2009 General Purposes Committee (GPC)meeting was held in London on 15 April. For those with agood memory, they will note that this was the exact day thatmost of Europe’s air space was shut down by volcanic ashfrom Iceland. Most of the GPC members arrived on schedule,but many did not get back home so quickly….

Owing to the planned LNG 16 conference in Algeria, wehad not programmed a Panel Meeting for spring 2010. Wehave to feel sorry for the organisers of that conference sincethe aforementioned ash clouds reduced the attendance toonly about 10-15 per cent of the number expected. This wasa genuine force majeure case, but it must have been extremelyfrustrating and disappointing after 30 months of hard workby the organising committee and associated staff.

The revised IGC Code reflects new gas carrier technologies

continued from page 1 Looking forward, the next GPC and Panel Meetings arescheduled for Indonesia at the end of September. We lookforward to welcoming as many members as possible inDenpasar.

There are two staff changes in the offing as I write.Technical Adviser Teo Popa, who joined the Secretariat inSeptember 2008, will be leaving to return to his nativeRomania. Technical Adviser Andy Murray joined us inDecember 2007 and will be returning to his parent companyat year end.

I would like to express my thanks to both for their hardwork, professionalism and contribution to SIGTTO, and towish them well with their future careers. The process ofidentifying replacements is in hand and the results will beannounced in due course.

PUBLICATIONS

Updating keynotepublication“Liquefied Gas Handling Principles” is the major textbookpublished by SIGTTO. The latest version, the third edition,was issued in 2000. Considering the pace of technologicaldevelopments over the past ten years, it is time to haveanother look at the publication with a view to updating it andissuing a fourth edition.

Some areas where further work needs doing have alreadybeen identified. When the textbook was last revised, onboardLNG reliquefaction was purely a paper concept, yet to find areal application. Today, reliquefaction plants are a key pieceof equipment on 45 Q-flex and Q-max LNG carriers built tocarry LNG from Qatar.

Other shipboard equipment which was not considered in2000 includes gas combustion units. In addition, someSIGTTO members have already suggested further areas wheremore up-to-date information would be of benefit, includingthose relating to cargo heel management on LNG ships anddrainage procedures for hoses and transfer arms.

To help with the “Liquefied Gas Handling Principles”revision process, the Society’s Secretariat would like to invitethe readers of SIGTTO News to write in with any commentson how the textbook could be improved. Correspondentsmay want to suggest the coverage of new subjects; the

inclusion of new aspects to existing subjects; or even thedeletion of parts of the book no longer judged to be applicable.

During the revision process the Secretariat will beapproaching selected members to seek their assistance withthe update of “Liquefied Gas Handling Principles”.

New types of LNG carrier and shipboard equipment undreamt of 10 yearsago have emerged

10

An LNG bunker fuel tank is installed on a Norwegian offshoresupply vessel

PROPULSION

Use of LNG as ship fuelThe boil-off gas from LNG cargoes has been used as fuel insteam turbine-powered LNG carriers since the first generationof these ships was built more than 40 years ago. Thetechnology is well established and basically the same as thatemployed on the pioneering LNG carriers Methane Princessand Methane Progress in the mid-1960s. The same approachto using cargo BOG as a ship fuel has more recently beenextended and adapted for the LNG carriers powered by dual-fuel diesel electric propulsion systems. The design principlesand safety regime governing theuse of BOG as LNG carrier fuel havestood the test of time.

Interest in the use of LNG as a fuelin other ship types is now increasingand developments are largely beingdriven by recognised environmentalbenefits. For example, the use ofLNG rather than marine diesel oilresults in a reduction of about 25per cent in carbon dioxide (CO

2)

emissions; the elimination of sulphuremissions; and a decrease of 80-90per cent in emissions of oxides ofnitrogen (NOx).

From a commercial point of view,because there is as yet only a very limited LNG supplyinfrastructure in place, it is difficult to put a price on LNG asbunker fuel. The impact of Emission Control Areas (ECAs)and the targeted reduction in sulphur levels in conventional

liquid fuels by 2015 under the revised MARPOL Annex VIregime indicate that the only liquid fuels that will be acceptablewithin ECAs will be distillate oils with a maximum 0.1 per centsulphur content. LNG certainly has the potential to provide anattractive commercial alternative to these distillate fuels.

Norway is currently leading the field in the application ofLNG as a vessel fuel. The country already has in service oncoastal routes several offshore supply vessels/tugs and cross-fjord ferries operating on LNG. IMO has already preparedinterim guidelines for gas-fuelled ships and work is underwayto develop and refine these initial requirements with a viewto preparing the International Code of Safety for Gas-FuelledShips (IGF Code). SIGTTO Secretariat staff are engaged with

this activity to ensure that best useis made of our long experience withcargo BOG as fuel.

A critical aspect is storage space.For a given ship cruising range, thevolume of LNG fuel required (thoughnot the deadweight) is about doublethat for liquid fuels. Whilst this maynot be much of an issue for vesselson shortsea routes, it may makeLNG fuelling less attractive for largervessels serving long-haul, deepseatrades where regional ECArestrictions have less of an impact.

It is currently unclear how quicklythe use of LNG as a ship fuel will

develop. It will depend upon how fast LNG marine bunkersupply infrastructure evolves and the total cost, i.e. the extracapital cost of the ships and the cost of LNG fuel, to the enduser.

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NEW MEMBERS

New trio welcomedThree companies involved in the LNG and LPG sectors havejoined SIGTTO as full members since the last Newsletter waspublished. The listing of the companies below shows theirdate of joining the Society. The SIGTTO membership nowstands at 120 full members, 59 associate members and 20non-contributory members.

Yemen LNG 1 July 2010Angola LNG Supply Services 1 September 2010Chemgas BV 1 September 2010

Yemen LNG (YLNG) has built and is operating a two-train LNG liquefaction plant in one of the most difficultterrains. The US$4.5 billion project includes a 345 km pipelinenetwork to bring the extracted gas from Marib fields incentral Yemen to Balhaf on the Gulf of Aden coastline. Theterminal features two 140,000 m3 LNG storage tanks and amarine jetty able to accommodate LNG carriers in the 70,000-205,000 m3 size range.

The guaranteed production capacity of the plant is 6.7million tonnes of LNG per annum (mta). Yemen LNG hascommitted approximately 100 per cent of the guaranteedplant capacity under three 20-year LNG sales and purchaseagreements with Korea Gas Corporation (Kogas), Total Gas& Power Ltd and GDF Suez. The YLNG shareholders are Total(the project leader) with 39.62 per cent, Hunt Oil 17.22 percent, Yemen Gas Company 16.73 per cent, SK Corporation9.55 per cent, Kogas 6 per cent, Hyundai Corporation 5.88per cent and Yemen General Authority for Social Security &Pensions 5 per cent.

Angola LNG Supply Services LLC (ALSS) is a Delawarelimited liability company owned by affiliates of Sonangol,Chevron, BP, Total and ENI. ALSS will purchase LNG from a5.2 mta liquefaction plant currently under construction onthe Congo River in northern Angola and transport it to the USby means of seven chartered LNG carriers, each ofapproximately 160,000 m3. The cargoes will be delivered toan LNG receiving terminal currently under construction inPascagoula, Mississippi. The ALSS offices are in Houston,Texas.

Chemgas was established in 1965 as an inland LPGbarging company and today the inland gas barge fleetconsists of 30 units. In 1985 the company expanded its rangeof activities by becoming involved with the seagoingtransportation of gas. The Chemgas seagoing fleet consists

Yemen LNG has added 6.7 million tonnes per annum to the world totalof LNG liquefaction capacity

DATABASE

Streamlining the duesprocess The SIGTTO Secretariat has been managing the membershipdues process on a database system established some sevenyears ago when the membership stood at around 100companies. Whilst the system has served the Society well, itdid require a considerable amount of manual datamanipulation.

Today, with a membership of over 175 companies and theintroduction of changing requirements for financial reporting,the time has come to look at the membership database againwith a view to upgrading it. The Secretariat has engaged anexternal IT expert to write a new program for us. The newapproach mimics the best features of the old system buteliminates some of the more labour-intensive manualprocesses incorporated in the system.

The plan is to bring the new membership database programon-line in November when the Secretariat starts the duesprocess for 2011. The concept of the address book and thedeclaration sheet remains, but members will be providedwith the possibility of either filling this in directly on-line orusing a simple spreadsheet format which can be sentelectronically to the Secretariat for uploading. The old paper-based system will be retained as a fallback but members willbe encouraged to use one of the new options.

In line with the current policy of minimising paper mailing,all the correspondence relating to the dues process will besent out by e-mail to the member company’s nominatedChief Representative.

Thresher is one of the low air draught vessels in the Chemgas seagoingfleet

of 10 fully pressurised gas carriers in the 2,000-3,500 m3 sizerange. A further new vessel, the 2,700m3 Twister, is due to bedelivered during the fourth quarter of this year. The maintrading area for the Chemgas seagoing fleet is North WestEurope, with a strong focus on the North Sea.

Apart from building and operating owned vessels, Chemgasregularly charters in vessels from third parties for longer orshorter terms to cover the transportation needs of its portfolioof customers. Chemgas was acquired by Reederei Jaegers,the Duisburg-based German tank barge company, in 2003.Chemgas remains an autonomous entity within the JaegersGroup. The company has its head office in Rotterdam andemploys about 260 people directly.

8

LAMNALCO

IGC CODE

Draft Code handed to IMO The revised draft of the International Gas Carrier (IGC) Codewas handed over to the IMO Secretariat, on time and asplanned, at the beginning of August. Work on revising theCode - the document which forms the cornerstone of gascarrier design - has been coordinated by SIGTTO. The agreedtext was approved at the final meetingof the IGC Steering Group in Londonin July following final checking, editingand proof reading in conjunction withWitherbySeamanship International.

The revised text represents theculmination of two and one-half yearsof work by 130 experts from 18countries and 48 differentorganisations. Every sector of theliquefied gas shipping industry, fromoperators, owners and designers toshipbuilders, class societies andindependent consultants, wasrepresented in the 10 working groupsconvened to carry out the revisionwork. The 15-member steering group, including all theworking group chairmen, directed the IGC Code revisionwork programme.

Over 1,000 man-days were spent in working group andsteering group meetings which, reflecting the internationalstatus of the Code, were held in 14 countries around theworld. Work at these scheduled meetings was backed by anincalculable amount of time spent working on various topics

by individual experts between meetings. The SIGTTO Secretariat would like to extend their thanks

to all who participated in this project and also to theirmanagers and principals who endorsed and supported theparticipation of their colleagues in this work.

Roger Roue, the SIGTTO Technical Advisor who played akey role in the overall coordination of the IGC Code revisionproject, reports that Chapter 4, which covers LNG containmentsystems, was the subject of the greatest amount of update

work amongst the Code’s chapters.This reflects the technologicaladvances that have been made in thisarea since the IGC code entered intoforce in 1983. Chapter 6 on materialswas also the focus of a significantamount of revision work, althoughthe texts of all the chapters have beenrevised and updated as appropriate.

The draft revised IGC Code will nowbe reviewed at the 15th Session ofIMO’s Bulk Liquids and GasesSubcommittee (BLG 15) in February2011 and there will then beconsultations with the IMO’s FireProtection (FP), Stability Loadline and

Fishing Vessel (SLF), and Design and Equipment (DE)Subcommittees with the expectation that a more or lessfinalised IGC Code will be returned for BLG 16 in February2012. After endorsement by BLG it will be sent to theMaritime Safety Committee (MSC) for comment and approvalat its May 2012 session at the earliest. This would pave theway for adoption at MSC’s May 2013 session and entry intoforce of the revised IGC Code in July 2014.

The IGC Code revision recognises the advances made ingas carrier design and equipment technology over thepast 30 years

6

STS TRANSFERS

Fenders - introducing the low pressure optionWork on a new fender standard is aimed at providing LNG shipowners with a flexible,competitive option for emergency ship-to-ship transfersIn recent years fendering requirements for ship-to-ship (STS)transfer operations have tended to become the preserve ofhigh pressure (HP) floating pneumatic fenders. The situationis supported by the current guidelines governing petroleumand LNG STS operations, which were developed on the basisof HP units that prevailed at the time of writing, but thisregime may unnecessarily restrict the use of other fendertypes, even where these may be more appropriate for thetask.

Recent testing of low pressure (LP) pneumatic fender unitsaccording to the methods laid down in the existing ISO 17357standard suggest that these units offer a viable alternative toHP fenders for certain operations where the avoidance ofhigh specific pressures and the ease of transportation interms weight and handling are priorities.

LP fenders are constructed from high-tenacity, high-strengthfabric which is coated with an abrasion and weathering-resistant synthetic rubber compound. They can bemanufactured to various sizes, with diameters up to 4.5mand lengths as great as 30m.

LP fenders work by exactly the same principle as HPfenders. The resistance to berthing vessel momentum isprovided by a reaction pressure due to compression of the airinside the fender when deformed by the vessel’s hull. Thekinetic energy of the berthing vessel is absorbed during thework done to compress the air inside the fender. Fenders aresized according to the expected duty of the fender in termsof energy absorption (EA) requirements which will be, at themost basic level, a function of the vessel mass and velocity.

Where the initial pressure of a standard HP fender is in theregion 500 to 800 mbar, rising to as high as 2,000 mbar whencompressed, an LP fender has an initial un-deformed pressureof 70 mbar which rises to only half that of the HP unit whencompressed. Because of their lower initial pressure and,therefore, lower developed pressure when compressed, LPfenders provide a “soft cushion” effect whereby energy canbe absorbed across a large contact area, distributing the loadmore effectively over the hull structure and minimising highlocalised loads. This can be especially valuable for damagedor delicate hulls; for example, during emergency STS operationswhere offloading of a distressed tanker may be required.

Reduced developed pressure also means that tensile loadssuch as hoop stresses across the fender are reduced, allowingan appropriate corresponding reduction in the weight ofreinforcing materials.

LP fenders of equivalent performance to HP fenders areapproximately half the weight of their HP counterpart. It isimportant to note that given HP weights do not include theweight of the chain nets used with HP fenders. These chainnets can effectively more than double the overall HP fenderweight. The reduced weight of LP fenders also means that itis possible to roll and fold such units, allowing them to betransported easily or stored away unobtrusively when notrequired. Some typical packed sizes for LP fenders are givenbelow.

The US Coast Guard makes extensive use of low pressure fenders in itsmany and varied operations

The reduced footprint of the packed LP fender compared toHP units and the greater options for transportation mean thatreduced fender inventories and inventory locations can alsobe considered.

The high EA capacity of LP fenders coupled with ease ofhandling enables ships of even the largest tonnage to besafely fendered in a wide range of weather conditions andduring various berthing operations.

Any convenient air supply can be used to inflate LP fenders,such as a compressor or light-duty blower. Inflation couplingsare fitted to the end of the fender and these can be suppliedto suit customer preference. Maintenance requirements forLP fenders are minimal and any necessary procedures aresimple.

LP fenders manufactured by Dunlop GRG of Manchester inthe UK were successfully used during the Exxon Valdez oilspill clean-up back in 1989 and they continue to be usedworldwide for a wide range of operations. The Royal Navy,the US Navy and the US Coast Guard utilise LP fenders whilecommercial offshore companies such as Svitzer, Fuji Trading,BP and Total Marine have used and continue to use LP fendersfor various operations. Such operations include STS transfers,offshore mooring, jetty mooring, naval applications, salvageand cargo recovery and emergency flotation.

Because of their robust performance and the advantage ofeasy handling and transportation, renewed interest in LPfenders as an alternative to HP fenders, particularly from ahigh profile LNG shipping company, has stimulated debate asto whether STS operations, especially emergency STS transfers,should be the sole preserve of HP fenders.

A new draft standard for Low Pressure Floating PneumaticFenders has been prepared and presented to the InternationalOrganization for Standardization (ISO) for review and

Fender size Packed size

(m) L (m) W (m) H (m)

1.0 x 4.0 1.6 0.8 0.5

1.8 x 8.0 2.0 0.7 0.7

2.3 x 12.0 2.0 1.2 1.0

2.8 x 14.0 3.0 1.4 1.4

3.3 x 16.0 2.7 1.6 1.5

4.5 x 22.0 4.0 1.6 1.4

UPCOMING MEETINGS

2010 Date Location62nd General Purposes Committee 28 Sep Indonesia55th Panel Meeting 29-30 Sep IndonesiaBoard and AGM 10 Nov HoustonPan American Regional Forum 11 Nov HoustonScandinavian Regional Forum TBC Dec TBCMediterranean Regional Forum TBC Dec Athens

201163rd General Purposes Committee 24 Mar Amsterdam

7

comment. Because of the essential similarities between LPand HP fender units, the new draft standard is modelledclosely on the existing standard for High Pressure FloatingPneumatic Fenders, ISO 17357.

Further comment from ISO on the draft standard is expectedto recommend either an amendment of ISO 17357 to includeLP fenders or the preparation of a new separate internationalstandard for LP fenders.

Support for either a change to ISO 17357 or the adoptionof a completely new LP fender standard is strong amongst LP

fender users. They acknowledge the importance of the needfor LP fenders to be seen to be performing according to awidely adopted ISO standard. In this way industry will beconfident that they are using a product of assured performancewhich meets STS guidelines and can be used more extensivelyin difficult or sensitive STS operations.

In the last few months LP fenders have been tested according

LNG STS transfers have been the domain of high pressure fenders to datebut this could be about to change

to the fender assembly performance test methods of ISO17357 and the tests have been witnessed by AmericanBureau of Shipping (ABS). Compression tests on fenderassemblies have demonstrated that the LP fender is a robustalternative to the equivalent HP unit and is capable of high EAwith low developed pressure. The internal pressure of the LPunits, when measured at compression to 60 per cent, hasconsistently been less than 1,000 mbar.

Since starting manufacture of LP fenders over 40 years ago,Dunlop GRG has followed stringent construction methodsand quality control checks of both materials and fabricatedassemblies. Due to the benefits stemming from a newinternationally recognised standard for LP fenders, rigorousproduct testing and continuous improvement of materialstechnology, the Dunlop GRG LP fender has evolved to meetthe needs and demands of current fendering requirements,including STS operations.

This article was compiled for SIGTTO News by Dunlop GRG,part of the Trelleborg Group and a leading marine fendersupplier.

IRI TEKNA

6

STS TRANSFERS

Fenders - introducing the low pressure optionWork on a new fender standard is aimed at providing LNG shipowners with a flexible,competitive option for emergency ship-to-ship transfersIn recent years fendering requirements for ship-to-ship (STS)transfer operations have tended to become the preserve ofhigh pressure (HP) floating pneumatic fenders. The situationis supported by the current guidelines governing petroleumand LNG STS operations, which were developed on the basisof HP units that prevailed at the time of writing, but thisregime may unnecessarily restrict the use of other fendertypes, even where these may be more appropriate for thetask.

Recent testing of low pressure (LP) pneumatic fender unitsaccording to the methods laid down in the existing ISO 17357standard suggest that these units offer a viable alternative toHP fenders for certain operations where the avoidance ofhigh specific pressures and the ease of transportation interms weight and handling are priorities.

LP fenders are constructed from high-tenacity, high-strengthfabric which is coated with an abrasion and weathering-resistant synthetic rubber compound. They can bemanufactured to various sizes, with diameters up to 4.5mand lengths as great as 30m.

LP fenders work by exactly the same principle as HPfenders. The resistance to berthing vessel momentum isprovided by a reaction pressure due to compression of the airinside the fender when deformed by the vessel’s hull. Thekinetic energy of the berthing vessel is absorbed during thework done to compress the air inside the fender. Fenders aresized according to the expected duty of the fender in termsof energy absorption (EA) requirements which will be, at themost basic level, a function of the vessel mass and velocity.

Where the initial pressure of a standard HP fender is in theregion 500 to 800 mbar, rising to as high as 2,000 mbar whencompressed, an LP fender has an initial un-deformed pressureof 70 mbar which rises to only half that of the HP unit whencompressed. Because of their lower initial pressure and,therefore, lower developed pressure when compressed, LPfenders provide a “soft cushion” effect whereby energy canbe absorbed across a large contact area, distributing the loadmore effectively over the hull structure and minimising highlocalised loads. This can be especially valuable for damagedor delicate hulls; for example, during emergency STS operationswhere offloading of a distressed tanker may be required.

Reduced developed pressure also means that tensile loadssuch as hoop stresses across the fender are reduced, allowingan appropriate corresponding reduction in the weight ofreinforcing materials.

LP fenders of equivalent performance to HP fenders areapproximately half the weight of their HP counterpart. It isimportant to note that given HP weights do not include theweight of the chain nets used with HP fenders. These chainnets can effectively more than double the overall HP fenderweight. The reduced weight of LP fenders also means that itis possible to roll and fold such units, allowing them to betransported easily or stored away unobtrusively when notrequired. Some typical packed sizes for LP fenders are givenbelow.

The US Coast Guard makes extensive use of low pressure fenders in itsmany and varied operations

The reduced footprint of the packed LP fender compared toHP units and the greater options for transportation mean thatreduced fender inventories and inventory locations can alsobe considered.

The high EA capacity of LP fenders coupled with ease ofhandling enables ships of even the largest tonnage to besafely fendered in a wide range of weather conditions andduring various berthing operations.

Any convenient air supply can be used to inflate LP fenders,such as a compressor or light-duty blower. Inflation couplingsare fitted to the end of the fender and these can be suppliedto suit customer preference. Maintenance requirements forLP fenders are minimal and any necessary procedures aresimple.

LP fenders manufactured by Dunlop GRG of Manchester inthe UK were successfully used during the Exxon Valdez oilspill clean-up back in 1989 and they continue to be usedworldwide for a wide range of operations. The Royal Navy,the US Navy and the US Coast Guard utilise LP fenders whilecommercial offshore companies such as Svitzer, Fuji Trading,BP and Total Marine have used and continue to use LP fendersfor various operations. Such operations include STS transfers,offshore mooring, jetty mooring, naval applications, salvageand cargo recovery and emergency flotation.

Because of their robust performance and the advantage ofeasy handling and transportation, renewed interest in LPfenders as an alternative to HP fenders, particularly from ahigh profile LNG shipping company, has stimulated debate asto whether STS operations, especially emergency STS transfers,should be the sole preserve of HP fenders.

A new draft standard for Low Pressure Floating PneumaticFenders has been prepared and presented to the InternationalOrganization for Standardization (ISO) for review and

Fender size Packed size

(m) L (m) W (m) H (m)

1.0 x 4.0 1.6 0.8 0.5

1.8 x 8.0 2.0 0.7 0.7

2.3 x 12.0 2.0 1.2 1.0

2.8 x 14.0 3.0 1.4 1.4

3.3 x 16.0 2.7 1.6 1.5

4.5 x 22.0 4.0 1.6 1.4

UPCOMING MEETINGS

2010 Date Location62nd General Purposes Committee 28 Sep Indonesia55th Panel Meeting 29-30 Sep IndonesiaBoard and AGM 10 Nov HoustonPan American Regional Forum 11 Nov HoustonScandinavian Regional Forum TBC Dec TBCMediterranean Regional Forum TBC Dec Athens

201163rd General Purposes Committee 24 Mar Amsterdam

7

comment. Because of the essential similarities between LPand HP fender units, the new draft standard is modelledclosely on the existing standard for High Pressure FloatingPneumatic Fenders, ISO 17357.

Further comment from ISO on the draft standard is expectedto recommend either an amendment of ISO 17357 to includeLP fenders or the preparation of a new separate internationalstandard for LP fenders.

Support for either a change to ISO 17357 or the adoptionof a completely new LP fender standard is strong amongst LP

fender users. They acknowledge the importance of the needfor LP fenders to be seen to be performing according to awidely adopted ISO standard. In this way industry will beconfident that they are using a product of assured performancewhich meets STS guidelines and can be used more extensivelyin difficult or sensitive STS operations.

In the last few months LP fenders have been tested according

LNG STS transfers have been the domain of high pressure fenders to datebut this could be about to change

to the fender assembly performance test methods of ISO17357 and the tests have been witnessed by AmericanBureau of Shipping (ABS). Compression tests on fenderassemblies have demonstrated that the LP fender is a robustalternative to the equivalent HP unit and is capable of high EAwith low developed pressure. The internal pressure of the LPunits, when measured at compression to 60 per cent, hasconsistently been less than 1,000 mbar.

Since starting manufacture of LP fenders over 40 years ago,Dunlop GRG has followed stringent construction methodsand quality control checks of both materials and fabricatedassemblies. Due to the benefits stemming from a newinternationally recognised standard for LP fenders, rigorousproduct testing and continuous improvement of materialstechnology, the Dunlop GRG LP fender has evolved to meetthe needs and demands of current fendering requirements,including STS operations.

This article was compiled for SIGTTO News by Dunlop GRG,part of the Trelleborg Group and a leading marine fendersupplier.

IRI TEKNA

5

NEW MEMBERS

New trio welcomedThree companies involved in the LNG and LPG sectors havejoined SIGTTO as full members since the last Newsletter waspublished. The listing of the companies below shows theirdate of joining the Society. The SIGTTO membership nowstands at 120 full members, 59 associate members and 20non-contributory members.

Yemen LNG 1 July 2010Angola LNG Supply Services 1 September 2010Chemgas BV 1 September 2010

Yemen LNG (YLNG) has built and is operating a two-train LNG liquefaction plant in one of the most difficultterrains. The US$4.5 billion project includes a 345 km pipelinenetwork to bring the extracted gas from Marib fields incentral Yemen to Balhaf on the Gulf of Aden coastline. Theterminal features two 140,000 m3 LNG storage tanks and amarine jetty able to accommodate LNG carriers in the 70,000-205,000 m3 size range.

The guaranteed production capacity of the plant is 6.7million tonnes of LNG per annum (mta). Yemen LNG hascommitted approximately 100 per cent of the guaranteedplant capacity under three 20-year LNG sales and purchaseagreements with Korea Gas Corporation (Kogas), Total Gas& Power Ltd and GDF Suez. The YLNG shareholders are Total(the project leader) with 39.62 per cent, Hunt Oil 17.22 percent, Yemen Gas Company 16.73 per cent, SK Corporation9.55 per cent, Kogas 6 per cent, Hyundai Corporation 5.88per cent and Yemen General Authority for Social Security &Pensions 5 per cent.

Angola LNG Supply Services LLC (ALSS) is a Delawarelimited liability company owned by affiliates of Sonangol,Chevron, BP, Total and ENI. ALSS will purchase LNG from a5.2 mta liquefaction plant currently under construction onthe Congo River in northern Angola and transport it to the USby means of seven chartered LNG carriers, each ofapproximately 160,000 m3. The cargoes will be delivered toan LNG receiving terminal currently under construction inPascagoula, Mississippi. The ALSS offices are in Houston,Texas.

Chemgas was established in 1965 as an inland LPGbarging company and today the inland gas barge fleetconsists of 30 units. In 1985 the company expanded its rangeof activities by becoming involved with the seagoingtransportation of gas. The Chemgas seagoing fleet consists

Yemen LNG has added 6.7 million tonnes per annum to the world totalof LNG liquefaction capacity

DATABASE

Streamlining the duesprocess The SIGTTO Secretariat has been managing the membershipdues process on a database system established some sevenyears ago when the membership stood at around 100companies. Whilst the system has served the Society well, itdid require a considerable amount of manual datamanipulation.

Today, with a membership of over 175 companies and theintroduction of changing requirements for financial reporting,the time has come to look at the membership database againwith a view to upgrading it. The Secretariat has engaged anexternal IT expert to write a new program for us. The newapproach mimics the best features of the old system buteliminates some of the more labour-intensive manualprocesses incorporated in the system.

The plan is to bring the new membership database programon-line in November when the Secretariat starts the duesprocess for 2011. The concept of the address book and thedeclaration sheet remains, but members will be providedwith the possibility of either filling this in directly on-line orusing a simple spreadsheet format which can be sentelectronically to the Secretariat for uploading. The old paper-based system will be retained as a fallback but members willbe encouraged to use one of the new options.

In line with the current policy of minimising paper mailing,all the correspondence relating to the dues process will besent out by e-mail to the member company’s nominatedChief Representative.

Thresher is one of the low air draught vessels in the Chemgas seagoingfleet

of 10 fully pressurised gas carriers in the 2,000-3,500 m3 sizerange. A further new vessel, the 2,700m3 Twister, is due to bedelivered during the fourth quarter of this year. The maintrading area for the Chemgas seagoing fleet is North WestEurope, with a strong focus on the North Sea.

Apart from building and operating owned vessels, Chemgasregularly charters in vessels from third parties for longer orshorter terms to cover the transportation needs of its portfolioof customers. Chemgas was acquired by Reederei Jaegers,the Duisburg-based German tank barge company, in 2003.Chemgas remains an autonomous entity within the JaegersGroup. The company has its head office in Rotterdam andemploys about 260 people directly.

8

LAMNALCO

IGC CODE

Draft Code handed to IMO The revised draft of the International Gas Carrier (IGC) Codewas handed over to the IMO Secretariat, on time and asplanned, at the beginning of August. Work on revising theCode - the document which forms the cornerstone of gascarrier design - has been coordinated by SIGTTO. The agreedtext was approved at the final meetingof the IGC Steering Group in Londonin July following final checking, editingand proof reading in conjunction withWitherbySeamanship International.

The revised text represents theculmination of two and one-half yearsof work by 130 experts from 18countries and 48 differentorganisations. Every sector of theliquefied gas shipping industry, fromoperators, owners and designers toshipbuilders, class societies andindependent consultants, wasrepresented in the 10 working groupsconvened to carry out the revisionwork. The 15-member steering group, including all theworking group chairmen, directed the IGC Code revisionwork programme.

Over 1,000 man-days were spent in working group andsteering group meetings which, reflecting the internationalstatus of the Code, were held in 14 countries around theworld. Work at these scheduled meetings was backed by anincalculable amount of time spent working on various topics

by individual experts between meetings. The SIGTTO Secretariat would like to extend their thanks

to all who participated in this project and also to theirmanagers and principals who endorsed and supported theparticipation of their colleagues in this work.

Roger Roue, the SIGTTO Technical Advisor who played akey role in the overall coordination of the IGC Code revisionproject, reports that Chapter 4, which covers LNG containmentsystems, was the subject of the greatest amount of update

work amongst the Code’s chapters.This reflects the technologicaladvances that have been made in thisarea since the IGC code entered intoforce in 1983. Chapter 6 on materialswas also the focus of a significantamount of revision work, althoughthe texts of all the chapters have beenrevised and updated as appropriate.

The draft revised IGC Code will nowbe reviewed at the 15th Session ofIMO’s Bulk Liquids and GasesSubcommittee (BLG 15) in February2011 and there will then beconsultations with the IMO’s FireProtection (FP), Stability Loadline and

Fishing Vessel (SLF), and Design and Equipment (DE)Subcommittees with the expectation that a more or lessfinalised IGC Code will be returned for BLG 16 in February2012. After endorsement by BLG it will be sent to theMaritime Safety Committee (MSC) for comment and approvalat its May 2012 session at the earliest. This would pave theway for adoption at MSC’s May 2013 session and entry intoforce of the revised IGC Code in July 2014.

The IGC Code revision recognises the advances made ingas carrier design and equipment technology over thepast 30 years

4

SNRI

9

The LNG sector is sole remaining repository of knowledge on steampropulsion for merchant ships

PIRACY

Piracy threat updateThe issue of how to deal effectively with piracy off the coastof Somalia and in the Arabian Sea continues. There has beensome evolution of tactics and responses but at the momentthe only notable relief from pirate attacks appears to be moredue to seasonal weather factors than to more effectivecontrol measures.

As noted, the pirates’ tactics evolve over time and so theresponse to the piracy threat has to similarly evolve. Duringthe second quarter of this year a complete review and updateof the “Best Management Practices to Deter Piracy off theCoast of Somalia and in the Arabian Sea” was undertaken.The new version, referred to as “BMP3” and prepared as an

IMO circular, is issued in printed hard-copy format as well asbeing available electronically from the SIGTTO website andfrom www.mschoa.org. This latter web address is a keyinformation source and all operators are strongly urged toregister and thus gain access to restricted areas for the latestupdates and information.

According to information from military sources, over 20 percent of the ships transiting the area either are not followingthe advice or, possibly, are not even aware that sound adviceis available. This is an unfortunate situation since it is clearfrom the records that these vessels are statistically at asignificantly greater risk of hijack than those following theadvice. One of the shipping industry’s targets in preparingBMP3 is to get a copy onto the bridge of every ship which is,or may be, transiting the area. SIGTTO members who wish tohave further hard copies of BMP3 should contact theSecretariat.

Whilst on the subject of piracy, the shipping industry, ledby the International Transport Workers’ Federation (ITF), hasraised an e-petition calling for action on piracy. At the time of

Shipping industry advice on the best ways to avert the risk of an attackby pirates continues to evolve

writing ITF has gathered over 300,000 signatures. The plan isto present the petition to the IMO Secretary General at WorldMaritime Day on 23 September 2010.

TRAINING

Steam engineercompetencyThe latest in SIGTTO’s series of suggested competencystandards, “LNG Steamship Suggested Competency Standardsfor Engineers”, is in the final stages of preparation prior topublication. This new publication sets out the relevant trainingrequirements in order to provide guidance for those developingtraining courses for engineers who will serve on steamships.

With the exception of one or two hybrid vessels, LNGcarriers are the only steam-powered merchant ships in serviceand, furthermore, the only commercial vessels with this typeof propulsion system being constructed. While the majorityof the new conventional size LNG carriers now entering

service are powered by dual-fuel diesel electric systems, LNGcarriers with steam turbines still account for about 75 per centof the overall LNG fleet. Considering the long service lives ofLNG carriers, these steamships will be with us for a considerabletime to come.

Given the rather ‘niche’ nature of the steam turbinetechnology, SIGTTO’s members supported the writing of thesteam engineer competency publication. Because the LNGshipping industry is unique in its commitment to steampropulsion, the reality is that if LNG shipowners do not lookafter the sector’s knowledge base in this respect, nobody elsewill do it for them.

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3

her cargo of 250,000 m3 of crude oil, most of which endedup on the beaches of Brittany, was caused by bad engineeringdetail in the design of studs in a flange in the steering gear’shydraulic system. It is clear on examination of the circumstancesthat no amount of effort in terms of behaviour-based safetytraining for the ship’s crew could have prevented this accident.In other words, there was no causal link.

So, whilst the concept of Heinrich’s triangle has a role toplay in promoting behaviour-based safety, too great aconcentration on it can have malign effects if it results inmanagement not paying attention to the possibilities ofmajor accidents for which there is no causal link to behaviour-based safety. Examination of major accidents shows thattheir causes often lie more in the area of failure of what I callprocess safety. This can best be described as the creation ofa safe operating environment achieved by a combination ofsound design, good operating procedures and practices,effective training of operators and good maintenancepractices.

It has often been said that our industry’s licence to operateis heavily underpinned by our excellent safety record.Therefore, the maintenance of this record is critical to ourfuture success. Our best hope of achieving a continuation ofour good safety record is by ensuring that responsiblemanagement keeps a broad view of all aspects of safety anddoes not allow its vision to be distorted by an over-concentration on individual aspects.

The first phase of SIGTTO’s role in co-ordinating the rewriteof the International Gas Carrier Code (IGC Code) has drawnto a close with the submission to the IMO Secretariat of therevised document in August, on schedule. It has been anamazing, even humbling, experience to witness thecommitment and effort by so many in the industry to conductthis overhaul of a document which forms the cornerstone ofthe design of gas carriers. I would like to record here mythanks to all those who have contributed to the work. Furtherdiscussion of the next stages of the IGC Code revision processcan be found on page 8.

SIGTTO’s spring 2009 General Purposes Committee (GPC)meeting was held in London on 15 April. For those with agood memory, they will note that this was the exact day thatmost of Europe’s air space was shut down by volcanic ashfrom Iceland. Most of the GPC members arrived on schedule,but many did not get back home so quickly….

Owing to the planned LNG 16 conference in Algeria, wehad not programmed a Panel Meeting for spring 2010. Wehave to feel sorry for the organisers of that conference sincethe aforementioned ash clouds reduced the attendance toonly about 10-15 per cent of the number expected. This wasa genuine force majeure case, but it must have been extremelyfrustrating and disappointing after 30 months of hard workby the organising committee and associated staff.

The revised IGC Code reflects new gas carrier technologies

continued from page 1 Looking forward, the next GPC and Panel Meetings arescheduled for Indonesia at the end of September. We lookforward to welcoming as many members as possible inDenpasar.

There are two staff changes in the offing as I write.Technical Adviser Teo Popa, who joined the Secretariat inSeptember 2008, will be leaving to return to his nativeRomania. Technical Adviser Andy Murray joined us inDecember 2007 and will be returning to his parent companyat year end.

I would like to express my thanks to both for their hardwork, professionalism and contribution to SIGTTO, and towish them well with their future careers. The process ofidentifying replacements is in hand and the results will beannounced in due course.

PUBLICATIONS

Updating keynotepublication“Liquefied Gas Handling Principles” is the major textbookpublished by SIGTTO. The latest version, the third edition,was issued in 2000. Considering the pace of technologicaldevelopments over the past ten years, it is time to haveanother look at the publication with a view to updating it andissuing a fourth edition.

Some areas where further work needs doing have alreadybeen identified. When the textbook was last revised, onboardLNG reliquefaction was purely a paper concept, yet to find areal application. Today, reliquefaction plants are a key pieceof equipment on 45 Q-flex and Q-max LNG carriers built tocarry LNG from Qatar.

Other shipboard equipment which was not considered in2000 includes gas combustion units. In addition, someSIGTTO members have already suggested further areas wheremore up-to-date information would be of benefit, includingthose relating to cargo heel management on LNG ships anddrainage procedures for hoses and transfer arms.

To help with the “Liquefied Gas Handling Principles”revision process, the Society’s Secretariat would like to invitethe readers of SIGTTO News to write in with any commentson how the textbook could be improved. Correspondentsmay want to suggest the coverage of new subjects; the

inclusion of new aspects to existing subjects; or even thedeletion of parts of the book no longer judged to be applicable.

During the revision process the Secretariat will beapproaching selected members to seek their assistance withthe update of “Liquefied Gas Handling Principles”.

New types of LNG carrier and shipboard equipment undreamt of 10 yearsago have emerged

10

An LNG bunker fuel tank is installed on a Norwegian offshoresupply vessel

PROPULSION

Use of LNG as ship fuelThe boil-off gas from LNG cargoes has been used as fuel insteam turbine-powered LNG carriers since the first generationof these ships was built more than 40 years ago. Thetechnology is well established and basically the same as thatemployed on the pioneering LNG carriers Methane Princessand Methane Progress in the mid-1960s. The same approachto using cargo BOG as a ship fuel has more recently beenextended and adapted for the LNG carriers powered by dual-fuel diesel electric propulsion systems. The design principlesand safety regime governing theuse of BOG as LNG carrier fuel havestood the test of time.

Interest in the use of LNG as a fuelin other ship types is now increasingand developments are largely beingdriven by recognised environmentalbenefits. For example, the use ofLNG rather than marine diesel oilresults in a reduction of about 25per cent in carbon dioxide (CO

2)

emissions; the elimination of sulphuremissions; and a decrease of 80-90per cent in emissions of oxides ofnitrogen (NOx).

From a commercial point of view,because there is as yet only a very limited LNG supplyinfrastructure in place, it is difficult to put a price on LNG asbunker fuel. The impact of Emission Control Areas (ECAs)and the targeted reduction in sulphur levels in conventional

liquid fuels by 2015 under the revised MARPOL Annex VIregime indicate that the only liquid fuels that will be acceptablewithin ECAs will be distillate oils with a maximum 0.1 per centsulphur content. LNG certainly has the potential to provide anattractive commercial alternative to these distillate fuels.

Norway is currently leading the field in the application ofLNG as a vessel fuel. The country already has in service oncoastal routes several offshore supply vessels/tugs and cross-fjord ferries operating on LNG. IMO has already preparedinterim guidelines for gas-fuelled ships and work is underwayto develop and refine these initial requirements with a viewto preparing the International Code of Safety for Gas-FuelledShips (IGF Code). SIGTTO Secretariat staff are engaged with

this activity to ensure that best useis made of our long experience withcargo BOG as fuel.

A critical aspect is storage space.For a given ship cruising range, thevolume of LNG fuel required (thoughnot the deadweight) is about doublethat for liquid fuels. Whilst this maynot be much of an issue for vesselson shortsea routes, it may makeLNG fuelling less attractive for largervessels serving long-haul, deepseatrades where regional ECArestrictions have less of an impact.

It is currently unclear how quicklythe use of LNG as a ship fuel will

develop. It will depend upon how fast LNG marine bunkersupply infrastructure evolves and the total cost, i.e. the extracapital cost of the ships and the cost of LNG fuel, to the enduser.

South of England

2

BURCKHARDT

11

REGULATIONS

Gas carriers and VOCsThe revised MARPOL Annex VI, introducing more stringent requirements governing the control of ship atmospheric emissions,came into force on 1 July 2010. There is an issue with regards to its interpretation and application of the Regulation 15provisions covering volatile organic compounds (VOCs) to gas carriers, particularly as a consequence of Paragraph 7.Regulation 15 is copied in full below:

There is a footnote in the regulation referring to Chapter 5 of the IGC Code.

Reading this in the whole, it would seem clear that the intent is for the application of Regulation 15 only to oil tankers yetParagraph 7 has raised many questions and caused confusion. Itappears out of context. The SIGTTO Secretariat has endeavoured tofind out why Paragraph 7 is there and no satisfactory explanation hasbeen given. There is a suggestion that it was somehow carried overfrom a previous draft.

Looking to the IMO papers from the time when the revised MARPOLAnnex VI was approved, the final version of the Committee FinalReport, MEPC 58/23 para. 5.42.2, includes the following:

“Two issues arose in the review of this document. First, the Groupconsidered whether, because of paragraph 7 of regulation 15, gascarriers were also required to have a VOC management plan. Incarefully examining the wording of the regulation, the Groupdecided that this was not the case and did not include anyreference to gas carriers in the cover resolution or in the guidelinesfor the development of a VOC management plan ….”

From this, it is clear there is no intention to include gas carriers in the requirements for the development of VOC managementplans. IACS is preparing a ‘Unified Interpretation’ to help clarify the situation. This will be submitted to the 61st Session of IMO’sMarine Environment Protection Committee (MEPC 61) in September 2010.

Should any SIGTTO member’s ship be challenged by a port state control (PSC) inspector, in the first instance we recommendthat either you show them this article or you point out that the cargo operations manual, required under IGC Code, prescribesall loading operations without release of any cargo vapours to atmosphere.

15. Volatile Organic Compounds (VOCs)1. If the emissions of VOCs from a tanker are to be regulated in a port or ports or a terminal or terminals under thejurisdiction of a Party, they shall be regulated in accordance with the provisions of this regulation.

2. A Party regulating tankers for VOC emissions shall submit a notification to the Organization. This notification shallinclude information on the size of tankers to be controlled, the cargoes requiring vapour emission control systems andthe effective date of such control. The notification shall be submitted at least six months before the effective date.

3. A Party which designates ports or terminals at which VOCs emissions from tankers are to be regulated shall ensurethat vapour emission control systems, approved by that Party taking into account the safety standards for such systemsdeveloped by the Organization, are provided in any designated port and terminal and are operated safely and in a mannerso as to avoid undue delay to a ship.

4. The Organization shall circulate a list of the ports and terminals designated by Parties to other Parties and MemberStates of the Organization for their information.

5. A tanker to which paragraph 1 of this regulation applies shall be provided with a vapour emission collection systemapproved by the Administration taking into account the safety standards for such systems developed by the Organization,and shall use this system during the loading of relevant cargoes. A port or terminal which has installed vapour emissioncontrol systems in accordance with this regulation may accept tankers which are not fitted with vapour collection systemsfor a period of three years after the effective date identified in paragraph 2 of this regulation.

6. A tanker carrying crude oil shall have on board and implement a VOC Management Plan approved by theAdministration. Such a plan shall be prepared taking into account the guidelines developed by the Organization. The planshall be specific to each ship and shall at least:

.1 provide written procedures for minimizing VOC emissions during the loading, sea passage and discharge of cargo;

.2 give consideration to the additional VOC generated by crude oil washing;

.3 identify a person responsible for implementing the plan; and

.4 for ships on international voyages, be written in the working language of the master and officers and, if theworking language of the master and officers is not English, French, or Spanish, include a translation intoone of these languages.

7. This regulation shall also apply to gas carriers only if the type of loading and containment systems allow safe retentionof non-methane VOCs on board or their safe return ashore.

Gas carrier cargo operations manuals prescribe all loadingoperations without release of any cargo vapours to atmosphere






New members . . . . . . . . . . . . . . . Page 5
























12

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

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

Editor:Mike Corkhill

SIGTTO Contact:Linda Murray, Office Manager

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

Printing:Orion Print Services, LU2 7DS, UK

Copyright: ©SIGTTO 2010The contents may be reproduced free ofcharge on condition that acknowledgementis given to SIGTTO News.

COUNTRY PROFILE

All change in Indonesiacargoes for both Badak and Arun.Tangguh LNG’s first shipment wasloaded onboard the 155,000m3

membrane tank Tangguh Foja.Although the eight trains at the Badak

plant have an LNG production capacityof 22.5 million tonnes per annum (mta),output peaked at 21.4 mta in 2001 andhas been on the decline since. Export

shipments in 2009 totalled 17.4 mta.At Arun, too, output has been on thedecline for several years. The facility’soriginal six trains had a capacity of 13.8mta but the two oldest units were closeddown in 2000, reducing the overallcapacity to 9.8 mta. Arun shipped only42 export cargoes in 2009, down fromthe peak level of 223 cargoes in 1994.

Output from the newly commissionedTangguh complex is helping to slow thenationwide trend but even the 7.6 mtaoutput from the two-train plant inremote Papua is unable to compensatefully for the declining volumes of LNGfrom Badak and Arun.

Several of the long-term Badak LNGsale and purchase agreements (SPAs)with overseas customers are expiring in2011 and are being renegotiated atmuch reduced volumes. This changingscenario will make some LNG availablefor domestic use and help Indonesia tomeet a challenge that has beendeveloping for several years. Althoughthe country is rich in gas overall, thecurrent shortage of gas in populousareas and the need to provide lowercost energy to many logisticallychallenged locations have beenincreasingly important agenda itemsfor Dr-Ing Evita Legowo, the Indonesiandirector general of oil and gas, and hercolleagues and advisors.

The promotion of LNG as an efficient,

low-cost fuel, through a series of small-to-medium scale projects, for manylocations in the Indonesian archipelagohas been identified as a central plank inthe country’s evolving energy policy.

Amongst the new LNG receivingterminal projects currently in theplanning stages is a scheme beingdeveloped by Pertamina, the state oiland gas company, and the national gasdistribution company PT PerusahaanGas Negara (PGN) which is based onthe positioning of a 3 mta LNG

regasification vessel nearJakarta. Several similarproposals involving floatingLNG receiving terminals forother parts of the country arein the pipeline.

There are a number ofpotential sources of LNG supplyfor the new terminals,including the Badak andTangguh plants, imports fromoverseas and output fromseveral proposed offshore andnew mid-scale terminals inIndonesia, including two inSulawesi. In the first instance,the availability of LNG fromBadak, in tandem with rapidconversions of existing LNGcarriers into floating storage

and regasification units (FSRUs), willenable the early projects to be fast-tracked and Indonesia to become thefirst Asian nation with an internal LNGdistribution network within the nextfew years.

As regards LPG exports, shipmentsfrom Indonesia reached a record high2.5 mta in 1996 and as recently as 2005the country was still exporting over 1mta, mostly to Japan. However, sincethen exports have dwindled as domesticconsumption has increased and in 2008the country imported as much LPG as itexported.

The main driver of change in the LPGsector is the highly successful nationalcampaign to convert household usersfrom heavily subsidised kerosene toLPG for cooking. The success is reflectedin the rise in domestic LPG demand to3 mt in 2009, up from 1.8 mt in 2008.Domestic production, from LNG plantsand oil refineries, met 2.1 mt of thecountry’s needs last year while 900,000tonnes of LPG was imported.

In the years ahead Indonesia’sconsumption of LPG will accelerate. By2015 total demand is expected to reach10 mta, of which 3 mta will be producedlocally and 7 mta will be imported bysea, primarily from the Middle East.Such a volume will put Indonesia in therunning for top spot in the league tableof leading LPG import nations.

Indonesia has been one of the world’sleading exporters of LNG and LPG forthree decades. However, becauseproven gas reserves are now beingdrawn down faster than they are beingreplaced, overseas shipments of bothLNG and LPG have peaked in recentyears.

Furthermore, the domestic energyrequirements of the islandnation are growing in tandemwith the rising population andthe government increasinglyfavours the use of clean-burning, competitively pricedgas over alternative fuels. Anentirely new Indonesian LNGindustry, based on a diversifiedinternal distribution network,is poised to materialise whileon the LPG front the countryhas recently become a netimporter.

Indonesia has three LNGliquefaction terminals inoperation, i.e. the PT BadakNGL facility in Bontang, EastKalimantan; the PT Arun NGLplant in Aceh province innorthern Sumatra; and the newTangguh LNG complex in Papua Baratprovince. Badak shipped its first cargoin August 1977, Arun in October 1978and Tangguh in July 2009.Coincidentally, the 125,000m3 sphericaltank LNG Aquarius carried the inaugural

Loading an LNG cargo at the Arun terminal

Documents

Autumn 2010 MESSAGE FROM GENERAL …