Navigating future landscapes

The commercial landscape of the LNG market is anticipated to experience fundamental change; in particular the replacement of traditional 25-year charters with short-term and medium-term contracts of 3 – 7 years.

This shift carries profound implications for LNG carriers, necessitating increased operational flexibility. Vessels must be prepared to call at new ports, operate as floating storage for extended periods, facilitate partial cargo discharges and engage in regular ship-to-ship (STS) transfer operations.

Shipowners ordering the next generation of LNG carriers for such contracts face increased investment risks compared to those built for long-term projects. This financial landscape necessitates a measured approach, prompting shipowners to opt for well-established technologies to mitigate operational risks.

The adoption of new technology introduces an additional layer of complication, potentially requiring charterers to agree to non-standard time charter party clauses.

To further mitigate financial risks and align with the evolving dynamics of LNG carrier financing, the traditional model of full capital expenditure amortised over the vessel’s life may be superseded by financing with one or two capital injections over the vessel’s 25-year lifespan.

This adjusted financial model aims to sustain the vessel’s competitiveness against newer, more modern counterparts, ensuring its viability and relevance throughout its operational life.

As the industry adapts to these financial nuances, shipowners, financiers, and charterers must all recalibrate their strategies to navigate the evolving demands of LNG shipping.

Regulation

The regulatory backdrop to LNG shipping has emerged as a central focus industry discussion, sparking debates about its consequences and making imperative a nuanced examination of the real impact of these measures.

The regulatory landscape is multifaceted, with specific attention from shipowners directed towards ‘one-off’ measures that directly influence vessel design, notably the Energy Efficiency Existing Ship Index (EEXI) and Energy Efficiency Design Index (EEDI). These measures wield a direct influence on vessel certification and impose limitations on vessel speed, thereby significantly shaping operational dynamics.

The regulatory landscape now also extends beyond design-centric measures, en-compassing market-based interventions such as the Carbon Intensity Indicator (CII) and the EU Emissions Trading System, designed to improve efficiency and reduce emissions. The collective goal of achieving a net-zero carbon footprint for shipping by 2050 propels both these market-driven initiatives, steering the industry towards sustainable practices.

Inherent in this pursuit is the understanding that demand for LNG as a pivotal en-ergy commodity is driven directly by end-users. Consequently, regulatory measures such as carbon taxes aimed at shipowners/operators, create an intricate interplay between regulatory measures and their economic implications for these end users.

Increasing efficiency

In the pursuit of heightened efficiency on the LNG carriers of the future, a crucial aspect involves reducing heat losses to the air. This can be achieved through the im-plementation of a waste heat recovery system (WHRS) based on the organic rankin cycle (ORC).

This innovative approach harnesses and utilises excess thermal energy that would otherwise dissipate into the atmosphere. The ORC system, known for its efficiency in converting waste heat into useful power, not only addresses environmental concerns by minimising heat emissions but also contributes significantly to the overall perfor-mance optimisation of LNG carriers.

Another pivotal strategy in advancing the efficiency of future LNG carriers in-volves capitalising on the temperature associated with the cargo that needs to be vaporised for fuel usage. This ‘cold source’ could be used to optimise existing onboard heat exchange systems, such as HVAC and low temperature central cooling. This innovative approach turns a necessity into a source of efficiency, leveraging the low temperatures of the LNG cargo itself to facilitate the vaporisation process for fuel consumption.

The installation of an air lubricating system (ALS), particularly micro bulb systems, is emerging as a key driver for operational effectiveness and flexibility and the integration of ALS, specifically micro bulb systems, can introduce a nuanced approach to speed range flexibility.

This technology ensures that the vessel’s power output aligns seamlessly with the WHRS, enabling not only a broader range of speed capabilities but also optimising the efficiency gains achieved through waste heat recovery. It is essential to note that while the successful integration of ALS with WHRS can achieve fuel consumption savings beyond 10%, an unmatched pairing may limit the potential gains to around 4%.

Machinery systems

The evolution of LNG carriers toward greater efficiency involves a fundamental redesign of machinery systems to achieve higher levels of integration, operational alignment and a reduction in energy wastage. This comprehensive approach encom-passes various systems such as the low-pressure compressed air, seawater cooling, and heating, ventilation, and air conditioning (HVAC). By optimising the integration of these crucial components, LNG carriers can achieve a more streamlined and harmonised machinery infrastructure.

The redesigning of machinery systems aims to create a cohesive and interconnected network that better matches the operational needs of the vessel. This involves meticulous planning to improve redundancies, enhance energy transfer efficiencies, and avoid unnecessary wastage. The emphasis on integrated machinery systems signifies a strategic shift towards a more holistic and synchronised approach to propulsion and auxiliary processes, contributing significantly to the overall efficiency enhancement of future LNG carriers.

Among the innovative strategies for future LNG carriers, the installation of pre-combustion carbon capture stands out as a transformative technology. This forward-looking approach involves capturing carbon before the combustion process, particularly in scenarios where hydrogen is produced and mixed with methane in auxiliary engines (AEs). This integration not only mitigates methane slip but also yields valuable pure carbon in graphite form which can potentially be re-used.

The process involves harnessing the produced hydrogen, which, when mixed with methane in AEs, leads to a reduction in methane slip during combustion. The consequential production of pure carbon presents an opportunity for its utilisation in the circular economy, adding an extra layer of sustainability to LNG carrier operations.

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