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LNG Shipping Knowledge PDF 18: Learn from the Experts about LNG Equipment, Operations, and Regulatio



Transportation and supply is an important aspect of the gas business, since natural gas reserves are normally quite distant from consumer markets. Natural gas has far more volume than oil to transport, and most gas is transported by pipelines. There is a natural gas pipeline network in the former Soviet Union, Europe and North America. Natural gas is less dense, even at higher pressures. Natural gas will travel much faster than oil through a high-pressure pipeline, but can transmit only about a fifth of the amount of energy per day due to the lower density. Natural gas is usually liquefied to LNG at the end of the pipeline, before shipping.




lng shipping knowledge pdf 18



LNG is transported using tanker trucks,[114] railway tanker cars,[115] and purpose built ships known as LNG carriers. LNG is sometimes taken to cryogenic temperatures to increase the tanker capacity. The first commercial ship-to-ship transfer (STS) transfers were undertaken in February 2007 at the Flotta facility in Scapa Flow[116] with 132,000 m3 of LNG being passed between the vessels Excalibur and Excelsior. Transfers have also been carried out by Exmar Shipmanagement, the Belgian gas tanker owner in the Gulf of Mexico, which involved the transfer of LNG from a conventional LNG carrier to an LNG regasification vessel (LNGRV). Before this commercial exercise, LNG had only ever been transferred between ships on a handful of occasions as a necessity following an incident.[citation needed] The Society of International Gas Tanker and Terminal Operators (SIGTTO) is the responsible body for LNG operators around the world and seeks to disseminate knowledge regarding the safe transport of LNG at sea.[117]


On 8 May 2018, the United States withdrew from the Joint Comprehensive Plan of Action with Iran, reinstating Iran sanctions against their nuclear program.[136] In response, Iran threatened to close off the Strait of Hormuz to international shipping.[137] The Strait of Hormuz is a strategic route through which a third of the world's LNG passes from Middle East producers.[138]


Navigation, shipping and international trade and commerce generally fall under federal jurisdiction in Canada, such that the applicable regulations fall primarily within the responsibility of federal authorities, including the Canada Energy Regulator, Transport Canada and Environment and Climate Change Canada. There are limited exceptions whereby provincial laws may have an impact on shipping of LNG (at least indirectly), most notably with respect to the environment due to the power of the provinces to regulate with respect to environmental matters and the health and safety of workers.


Transporting LNG from Canada by ship will engage a wide variety of regulations and other requirements that will need to be addressed by the parties involved, some of which are based on international maritime conventions and will be familiar to the international shipping community, but others of which are unique to Canada or the particular LNG terminal. This article provides an overview of some of the key areas that will need to be considered, but is not intended to be a comprehensive guide. This is a complex area in which specialist advice is recommended.


To date, though, publicly available emissions data across the entire WTT portion of the LNG value chain, from upstream production to liquefaction, storage, shipping, and regasification, are largely unverified and therefore remain best estimates.


A clearer picture of the emissions profile of LNG will also emerge over the next few years as more data from independent sources becomes available along the value chain. This is particularly important when it comes to methane leaks as well as currently understudied areas such as liquefaction and shipping. The result will likely be an upward revision of the WTT emissions from current estimates, and that, in turn, will put more emphasis on carbon intensity reductions across the LNG value chain by producers.


[8] Life cycle LNG emissions: Emissions from all stages of the LNG value chain, from gas production to pipeline to LNG liquefaction to loading and shipping to regasification to pipeline to downstream (or end use) combustion.


Just like SOLAS, which regulates the shipping industry to follow minimum standards to safeguard life at sea, the International Convention for the Prevention of Pollution from Ships /MARPOL is another important convention for the prevention of pollution of the marine environment.


It gives standards for stowing, handling, shipping and transferring toxic waste. Also, it lays down rules regarding the disposal of ship-generated hazardous waste like cleaning agents and cargo hold washing water.


MARPOL 73/78, since it came into force in 1973 and was later revised by the protocol in 1978, ensures that shipping remains the least environmentally damaging mode of transport. It ensures that the marine environment is preserved by the elimination of pollution by all harmful substances discharged from the ship.


Credit and Counterparty Risk Management: Comprised of a team with collective experience in ship finance with strong analytical skills as well as established relationships with numerous shipping companies, Drewry is able to provide enhanced due diligence and risk management when it comes to providing capital to the shipping industry. This will equip our customers with the necessary tools towards evaluating the merits and underlying risks of potential transactions.


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