This presentation was given by our Gasbassadors Anil Soni & Mattias Jansson at an LNG bunkering seminar in Langfang, Hebei. It was hosted by ENN , SGMF & CCS. Sponsored by Wartsila & GTT. In this presentation, they presented the different challenges that the offshore industry is facing & how LNG technology offers a viable option in these challenging markets.

1. © Wärtsilä
Supporting an LNG-fuelled marine
industry future across the entire gas
value chain
17th November 2016
SGMF Conference, Langfang, China
Anil Soni
Director, Strategy and Market Development
Wärtsilä Gas Solutions
Mathias Jansson
Innovation & Product Development
Fuel Gas Handling
22 November 20161

2. © Wärtsilä
2025 Jan 1:New
chapter of Marpol
Annex IV – Energy
Efficiency Design
Index (EEDI)
2016 Jul 1: Ecdis
mandatory existing
tankers (>3,000 GT)
2016 Jan 1: US ballast water
requirements for existing ships (ballast
Water capacity less than 1,5000 cu m or
greater than 5,000 cu m)
2016 Jan 1: IMO ballast water convention applies to
all other vessels (implies treatment technology needs
installing on vessels with ballast water)
2014 Jul 1: Ecdis mandatory for
existing passenger ships (<500
GT)
2014 Jul 1: Ecdis mandatory for newbuilding
cargo ships (>3,000gt and <10,000 GT)
2013 Aug 1: Maritime Labour
Convention.
2013 Jan 1: US ballast water
requirements start for
newbuildings.
2012 2013 2014 2015 2016 2017 2018 2019 2020
2012 Jan 1: Europe confirmed draft changes to
Sulphur in fuel directive.
2012 Jul 1: Ecdis mandatory for newbuilding
passenger ships (>500 GT) and newbuild tankers
(>3,000gt).
2013 Jan 1: Ship Energy Efficiency
Management plan and EEDI comes into force.
2013 Jan 1: EEDI becomes mandatory for
newbuildings. Benchmark set.
2013 Jul 1: Ecdis
mandatory for
newbuilding cargo
ships
(> 10,000 GT).
2014 Jan 1: IMO ballast water convention
applies to vessels built pre 2009 (implies
treatment technology needs installing on
vessels with ballast capacity 1,500 GT to 5,000
GT)
2014 Jan 1: US ballast water requirements for
existing ships (ballast water capacity 1,500 cu m
to 5,000 cu m)
2014 Jul 1: Noise levels: The code on noise levels
onboard ships will come into effect when the new
regulation enters into force.
2015 Jan 1: SOx ECA limits Sulphur in fuel
drops from 1.0% to 0.1% (SOx in emissions
should be equivalent if post combustion
exhaust gas cleaning technology is used)
2015 Jul 1: Ecdis mandatory existing
tankers (>3,000 GT)
2016 Jan 1: IMO NOx tier III
rules in force (newbuildings
operating in an ECA)
2017 Jul 1: Ecdis mandatory existing
cargo vessels (20,000 GT to 50,000 GT)
2018 Jan 1: Ecdis
mandatory existing
cargo vessels
(<20,000 GT)
2018 Jul 1: IMO low-
Sulphur fuel availability
survey completed (to
determine if 2020 global
reduction to 0.4% should
be deferred to 2024)
2020 Jan 1: Potential start of
market-based measure to further
curb CO2 emissions from shipping
(and contribute to the UNFCCC
initiated climate
2020 Jan 1: Sulphur in fuels
global limit drops from 3.5% to
0.5%
2020 Jan 1: European rules on
Sulphur in fuels forces drop to 0.5%
regardless of IMO 2018 availability
study
Regulations governing shipping & offshore are becoming stricter
everyday
SHIPPING REGULATIONS
Source : Lloyd’s List.
ECDIS=Electronic chart Display and Information system,
EEDI=Energy Efficiency Design index
This picture is only directional. Refer to www.imo.org for latest timeline
22 November 20162 Supporting an LNG-fuelled marine industry future across the entire gas value chain

3. © Wärtsilä
Until recent past shipping & offshore was as simple as this…..
SHIPPING ROUTES
22 November 20163 Supporting an LNG-fuelled marine industry future across the entire gas value chain

4. © Wärtsilä
Established Emissions Controlled Areas
Emissions Controlled Areas under consideration
Shipping critical points
But the picture has been changing to look something more like this….
SHIPPING ROUTES
22 November 20164 Supporting an LNG-fuelled marine industry future across the entire gas value chain

5. © Wärtsilä
Technologically there are two economic ways to minimize emissions
TECHNOLOGY OPTIONS TO COMPLY WITH ENVIRONMENTAL REGULATIONS
Exhaust gas treatment
technologies
Switch to alternative fuels
Two ways ahead:
22 November 20165 Supporting an LNG-fuelled marine industry future across the entire gas value chain

6. © Wärtsilä
Natural gas as marine fuel is the perfect option to comply with
emissions regulations
LNG AS FUEL FOR COMPLIANCE WITH EMISSION REGULATIONS
CO2
NOx
SOx
Particulates
Dual-Fuel engine
in gas mode
Diesel
engine
0
10
20
30
40
50
60
70
80
90
100
Emission
values [%]
-25%
-85%
-100%
-100%
Picture Source: https://malcolmoliver.files.wordpress.com
22 November 20166 Supporting an LNG-fuelled marine industry future across the entire gas value chain

7. © Wärtsilä
Chicken and Egg Dilemma – the million dollar question
CHICKEN AND EGG DILEMMA
22 November 20167 Supporting an LNG-fuelled marine industry future across the entire gas value chain

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LNG as Fuel movement is still waiting for enough LNG bunkering
facilities
CHICKEN AND EGG DILEMMA
• Ship Owners are not keen to use LNG as fuel due to lack
of LNG bunkering facilities
• Terminal builders/operators are not keen to invest due to
lack of sufficient LNG fuelled vessels to bunker
• But for how long will we keep talking about this dilemma?
• It’s time to take some concrete actions and
SGMF is one of best initiatives in this
direction.
22 November 20168 Supporting an LNG-fuelled marine industry future across the entire gas value chain

9. © Wärtsilä
Cargo
Ship; 4
Containership; 3Cruise; 5
Ferries; 15
Gas
Carrier; 6
Inland Vessel; 586
LNG
Bunkering
Vessel; 3LNGC; 117
LNGC/FSRU;
2
Offshore; 13
Other; 5
Ro-Ro; 3
Tanker; 10
On Order
Cargo Ship; 3
Containership;
3
Cruise; 1
Ferries; 35
Gas
Carrier;
12
Inland Vessel;
37 LNGC; 201
LNGC/FSRU; 14
Offshore; 32
Other; 8
Ro-Ro; 4
Tanker; 5
In Service
In Service; 355;
31%
On Order; 772;
69%
Global LNG Fuelled Fleet
LNG FUELLED FLEET
Source: Clarkson Research 24 Oct. 2016
LNG Fuelled Ships
22 November 20169 Supporting an LNG-fuelled marine industry future across the entire gas value chain

10. © Wärtsilä
OVERVIEW OF LNG
SOLUTIONS & BUNKERING
IN DIFFERENT VESSEL
SEGMENTS
Mathias Jansson
Innovation & Product Development
Fuel Gas Handling
22 November 201610 Supporting an LNG-fuelled marine industry future across the entire gas value chain

11. © Wärtsilä 22 November 201611 Supporting an LNG-fuelled marine industry future across the entire gas value chain

12. © Wärtsilä 22 November 201612
REFERENCES - OVERVIEW
NOTE: Includes also LNG fuel gas tank deliveries of Hamworthy
Dredger 3
Fish Feeder 1
Offshore special 1
Passenger 1
Product Tanker 5
PSV 12
RoPax 20
RoRo 4
Tug 4
Special vessels 15
Belgium 4
Canada 14
Germany 2
Norway 15
Sweden 3
UAE 1
USA 8
UK 17
Finland 1
Spain 1
Total number of vessels equipped with Wartsila LNGPac™: 66
Total number of LNGPac™: 80
Total volume: 20580 m³
Number of vessels in operation: 18
Number of vessels confirmed and/or under construction: 48
Owner country Application
ABS 6500
BV 6839
DNV-GL 4478
LR 2738
Tasneef 25
Number per class
Volume per class
ABS 10
BV 15
DNV-GL 16
LR 24
Tasneef 1
0
5
10
15
20
25
30
35
2011 2012 2013 2014 2015 2016 2017
+
1
5
2 2
5
18
33
Delivery year
Distribution trend of LNG fuel gas vessels fitted
with Wärtsilä LNG Fuel gas system
0
10
20
30
40
50
60
70
2011
2012
2013
2014
2015
2016
2017 +
Year
Cumulative distribution of LNG fuel gas vessels
fitted with Wärtsilä LNG Fuel gas system
66
Supporting an LNG-fuelled marine industry future across the entire gas value chain

13. © Wärtsilä
WÄRTSILÄ LNGPAC – DIFFERENT SOLUTIONS FOR DIFFERENT NEEDS
LNGPac TM with double shell
vacuum insulated tanks and
pressure build up
LNGPacTM with single shell
tanks and LNG pumps
(capacity range 25-500 m3) (capacity range 300-3000+.. m3)
LNGPac TM with vertical tanks
Wärtsilä LNGPac:
Optimal Solution for your
LNG fuelled ship
22 November 201613
LNGPacTM ISO with
containerized tanks
Supporting an LNG-fuelled marine industry future across the entire gas value chain

14. © Wärtsilä
EXAMINING TANK TYPE C - ARRANGEMENTS
Vacuum insulated tanks Polyurethane insulated tanks
Horizontal
Vertical
Cylindrical
Bilobe Multilobe
(prototype)
Vertical
14 22 November 2016 Supporting an LNG-fuelled marine industry future across the entire gas value chain

15. © Wärtsilä
LNG DYNAMICS:
INFLUENCE ON
LNG BUNKERING
15 22 November 2016 Supporting an LNG-fuelled marine industry future across the entire gas value chain

16. © Wärtsilä16
WÄRTSILÄ LNGPAC LNG BUNKERING
8
5
2
Time
Tank pressure
Bar(g)
Tank pressure control during bunkering
• Bunkering from top (spray)
• Bunkering from bottom
• Automatic mode
Bunkering
station
Tank Connection Space
The LNG bunkered should be as cold as
possible, to have an effective recondensation
of BOG during bunkering from top!
The LNG composition of the bunkered LNG
should be as close as possible of the LNG in
the tank (prefer same bunkering source)!
LNG influence during bunkering
22 November 2016 Supporting an LNG-fuelled marine industry future across the entire gas value chain

17. © Wärtsilä
WÄRTSILÄ LNGPAC LNG BUNKERING
LNG bunkering pressure is an important
parameter for an effective bunkering.
Following equation must apply for bunkering:
The higher the difference between feeding
pressure and p2 the higher the volume flow
is.
𝒑 𝟏 − 𝒑𝒍𝒊𝒇𝒕𝒊𝒏𝒈,𝒉𝒆𝒊𝒈𝒉𝒕 + 𝜟𝒑 𝒑𝒖𝒎𝒑 > 𝒑 𝟐
Indicative maximum bunkering flows for
different bunkering station skid sizes:
DN 50 = 50 m3/h;
DN 80 = 100 m3/h;
DN 100 = 220 m3/h
DN 150= 430 m3/h
LNG influence during bunkering
17 22 November 2016 Supporting an LNG-fuelled marine industry future across the entire gas value chain

18. © Wärtsilä18
WÄRTSILÄ LNGPAC LNG BUNKERING
Fully SGMF compliant bunkering manifold arrangement
Complete range of bunkering manifold equipment, built
as separate, completely pre-assembled units for
bunkering and/or vapour return. All units are fully in
accordance with latest recommendations of SGMF
committee, guideline for standardization of bunkering
manifold arrangement for gas fuelled vessels.
Bunkering capacity: 50-430 m³/hr (indicative)
Bunkering manifold sizes: DN50/80/100/150
Vapour Return manifold sizes: DN50/80/100
22 November 2016 Supporting an LNG-fuelled marine industry future across the entire gas value chain
Source: SGMF

19. © Wärtsilä
FSRU GDF SUEZ CAPE ANN
TIANJIN, CHINA
22 November 201619 Supporting an LNG-fuelled marine industry future across the entire gas value chain

20. © Wärtsilä 22 November 201620
Tianjin, China
CHINA’S FIRST FSRU GDF SUEZ CAPE ANN
FSRU GDF Suez Cape Ann
Owner Hoegh LNG; MOL
Builder SHI, South Korea
Year of Built 2009
Cargo Capacity 145 130 m3
Regas Trains 3 x 210 TPH
Max operating capacity 750 mmscfd
Containment system Mark III - Membrane
Classification DNV-GL
LOA 283 m
Breadth moulded 46 m
Summer draught 12.4 m
Regas Unit Designer Wärtsilä Gas
Solutions
Engine Wärtsilä DFDE
• Employed as China’s first FSRU
located in Tianjin, China, in order
to cover industrial demand for
natural gas and replace liquid
fuels
Source: http://www.hoeghlng.com
Supporting an LNG-fuelled marine industry future across the entire gas value chain

21. © Wärtsilä
Steam Heated Water/Glycol LNG Regasification System
22 November 2016 Supporting an LNG-fuelled marine industry future across the entire gas value chain21
FSRU GDF SUEZ CAPE ANN
Typical Capacity / Train
Range Unit
Flow 50~270 TPH
Pressure 46~120 Bar
Steam 15~83 TPH

22. Anil Soni
anil.soni@wartsila.com
Mathias Jansson
mathias.jansson@wartsila.com