Global LNG carrier landscape has changed dramatically when Qatar's Nakilat introduced the Q-Flex and Q-Max vessels, specifically targeting large shipments of LNG to Asia and Europe, International Gas Union (IGU) has said in a report.
According to IGU, Nakilat introduced the Q-Flex (210,000 to 217,000 cm) and Q-Max (263,000 to 266,000 cm) vessels, achieved greater economies of scale with their SSDR propulsion systems, representing the 45 largest LNG carriers ever built.
After the wave of Q-Class vessels, most newbuilds settled at a size between 150,000 and 180,000 cm, IGU said in its ‘World LNG Report 2022’.
This capacity range now makes up 39% of the current fleet.
The technological developments that steered adoption of this size are the two-stroke propulsion systems, such as the ME-GI, X-DF and STaGE types, that maximise fuel efficiency between 170,000 and 180,000 cm.
Another crucial factor is the new Panama Canal size limit – only vessels smaller than this size were initially authorised to pass through the new locks, imperative for any ship engaged in trade involving US LNG supply.
The Q-Flex LNG carrier Al Safliya, which is larger than 200,000 cm, became the first Q-Flex type LNG vessel and the largest LNG carrier by cargo capacity to transit the Panama Canal in May 2019.
While 174,000 cm remains the most common newbuild size, larger ships have once again gathered interest from shipowners. There are 12 200,000 cm vessels currently on order, nine at Hyundai Heavy Industries Group and three at Daewoo Shipbuilding & Marine Engineering, with the first unit expected to be delivered in early May 2022.
With further improved two-stroke propulsion solutions, the second-generation X-DF and ME-GA systems, 200,000 cm carriers might become a popular choice from an efficiency standpoint, although other aspects such as flexibility and terminal compatibility have to be considered.
Additional developments in the LNG carrier space include the progress on International Maritime Organisation (IMO) environmental regulations, re-liquefaction/subcooling system development, windassisted propulsion, and onboard carbon capture solutions.
The IMO’s Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) is expected to come into force in January 2023, IGU noted.
The EEXI is a one-off measurement to ensure a ship is energy efficient relative to its type, propulsion system and capacity. Any ship in service must attain EEXI approval from January 2023 to be considered compliant, which could result in LNG carriers having to reduce maximum speed to attain certification, impacting voyage durations and flexibility.
The CII is an ongoing measure of carbon emission intensity of the ship in operation over a period of one year where the requirements will become more stringent over time.
The rating levels will become stricter towards 2030 and might prove challenging to meet for a large proportion of LNG vessels.
Depending on the operational efficiency during the measured year, some vessels will be at risk of attaining a 'D' rating, having to improve carbon efficiency if the rating is not improved in maximum three years, or an 'E' rating, having to do carbon intensity improvements immediately.
“This ruling could cause a wave of vessels to be scrapped or converted, reducing the size of the active LNG carrier fleet in the subsequent few years,” IGU noted.
Newer generations of LNG carriers are delivered with re-liquefaction or subcooling systems to minimise boil-off gas consumption during sailing.
Re-liquefaction systems return unused boil-off gas to the LNG tank.
Due to the large upfront investment and power requirements for such systems, partial liquefaction systems are usually preferred.
Installation of a subcooling system is another alternative for reducing boil-off gas. This alternative may be simpler than traditional liquefaction systems and is an emerging and popular solution.
Wind-assisted propulsion is a solution that has gained traction recently. By attaching rotors or rigid, flexible or inflatable sails to the vessel, this solution can lead to reduced fuel consumption, reduced emissions and cost savings.
With pilot programmes in progress, LNG players are examining the potential of applying wind-assisted propulsion to newbuilds as well as retrofitting the active fleet.
An example is TotalEnergies working with Hyundai Heavy Industries Group, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries on assessing both possibilities for LNG carriers.
Capturing carbon dioxide from vessel exhaust gas is another method of decarbonising shipping that has gained interest recently. Installing carbon capture solutions on LNG carriers is less complicated relative to other vessel types, due to high exhaust gas heat and low-impurity fuel.
Samsung Heavy Industries has announced the successful development of an onboard carbon capture system for LNG-fuelled vessels and is in the process of commercialising the technology with the aim of having it widely available by 2024, IGU said.
According to IGU, Nakilat introduced the Q-Flex (210,000 to 217,000 cm) and Q-Max (263,000 to 266,000 cm) vessels, achieved greater economies of scale with their SSDR propulsion systems, representing the 45 largest LNG carriers ever built.
After the wave of Q-Class vessels, most newbuilds settled at a size between 150,000 and 180,000 cm, IGU said in its ‘World LNG Report 2022’.
This capacity range now makes up 39% of the current fleet.
The technological developments that steered adoption of this size are the two-stroke propulsion systems, such as the ME-GI, X-DF and STaGE types, that maximise fuel efficiency between 170,000 and 180,000 cm.
Another crucial factor is the new Panama Canal size limit – only vessels smaller than this size were initially authorised to pass through the new locks, imperative for any ship engaged in trade involving US LNG supply.
The Q-Flex LNG carrier Al Safliya, which is larger than 200,000 cm, became the first Q-Flex type LNG vessel and the largest LNG carrier by cargo capacity to transit the Panama Canal in May 2019.
While 174,000 cm remains the most common newbuild size, larger ships have once again gathered interest from shipowners. There are 12 200,000 cm vessels currently on order, nine at Hyundai Heavy Industries Group and three at Daewoo Shipbuilding & Marine Engineering, with the first unit expected to be delivered in early May 2022.
With further improved two-stroke propulsion solutions, the second-generation X-DF and ME-GA systems, 200,000 cm carriers might become a popular choice from an efficiency standpoint, although other aspects such as flexibility and terminal compatibility have to be considered.
Additional developments in the LNG carrier space include the progress on International Maritime Organisation (IMO) environmental regulations, re-liquefaction/subcooling system development, windassisted propulsion, and onboard carbon capture solutions.
The IMO’s Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) is expected to come into force in January 2023, IGU noted.
The EEXI is a one-off measurement to ensure a ship is energy efficient relative to its type, propulsion system and capacity. Any ship in service must attain EEXI approval from January 2023 to be considered compliant, which could result in LNG carriers having to reduce maximum speed to attain certification, impacting voyage durations and flexibility.
The CII is an ongoing measure of carbon emission intensity of the ship in operation over a period of one year where the requirements will become more stringent over time.
The rating levels will become stricter towards 2030 and might prove challenging to meet for a large proportion of LNG vessels.
Depending on the operational efficiency during the measured year, some vessels will be at risk of attaining a 'D' rating, having to improve carbon efficiency if the rating is not improved in maximum three years, or an 'E' rating, having to do carbon intensity improvements immediately.
“This ruling could cause a wave of vessels to be scrapped or converted, reducing the size of the active LNG carrier fleet in the subsequent few years,” IGU noted.
Newer generations of LNG carriers are delivered with re-liquefaction or subcooling systems to minimise boil-off gas consumption during sailing.
Re-liquefaction systems return unused boil-off gas to the LNG tank.
Due to the large upfront investment and power requirements for such systems, partial liquefaction systems are usually preferred.
Installation of a subcooling system is another alternative for reducing boil-off gas. This alternative may be simpler than traditional liquefaction systems and is an emerging and popular solution.
Wind-assisted propulsion is a solution that has gained traction recently. By attaching rotors or rigid, flexible or inflatable sails to the vessel, this solution can lead to reduced fuel consumption, reduced emissions and cost savings.
With pilot programmes in progress, LNG players are examining the potential of applying wind-assisted propulsion to newbuilds as well as retrofitting the active fleet.
An example is TotalEnergies working with Hyundai Heavy Industries Group, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries on assessing both possibilities for LNG carriers.
Capturing carbon dioxide from vessel exhaust gas is another method of decarbonising shipping that has gained interest recently. Installing carbon capture solutions on LNG carriers is less complicated relative to other vessel types, due to high exhaust gas heat and low-impurity fuel.
Samsung Heavy Industries has announced the successful development of an onboard carbon capture system for LNG-fuelled vessels and is in the process of commercialising the technology with the aim of having it widely available by 2024, IGU said.