Dunkirk Port LNG Project Advances

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The construction of a liquefied natural gas (LNG) bunkering operation at the Port of Dunkirk in northern France has advanced, following the announcement that partners have been chosen.

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The Port of Dunkirk, following on a call for expressions of interest (CEI) in May, has decided to contract a consortium of Dunkerque LNG, Air Liquide and Exmar for the construction of a marine station, which will be specifically dedicated to LNG bunkering. The station could accommodate ships with capacities of between 2,000 and 20,000 cubic metres.

The bunkering project forms part of a much larger project under way to build Europe's largest LNG regasification terminal at Dunkirk Port. The Dunkirk LNG terminal will have an annual regasification capacity of 13 billion cubic metres of gas, representing about 20% of France and Belgium's annual natural gas consumption.

The bunkering project will create a badly needed source of LNG as fuel for large ships, which must comply with stricter fuel emissions standards from next year. In the European SECA (Sulfur Emission Control Area), the highest permitted sulfur content of fuel will fall to 0.1 % from January 1, 2015. This will require most ships to either implement scrubber technology to reduce the sulfur in the exhaust gas to the required level or an equivalent level, or switch to a different type of fuel, such as Low-Sulfur Marine Gas Oil (LSMGO), LNG, or methanol. Of the 5,000 ships that trade in the SECA, 85% use Heavy Fuel Oil (HFO) which presents a large market opportunity for LNG as an alternative.

Dunkirk is aiming to capitalize on this with its new bunkering facility. Launching the tender in May, representatives from Port of Dunkirk said: "A clear trend now seems to be emerging in favour of LNG for recent or new vessels intended to operate permanently in SECA [Sulfur Emission Control Areas] areas. In 2015, Dunkirk will be the first port at the entrance to the SECA and the last port of exit able to offer LNG bunkering for transoceanic vessels."

The winning consortium proposes that in regards to on-land supply, Dunkerque LNG and Air Liquide will be responsible for the preliminary studies, the engineering and the investments. Gaz-Opale, a subsidiary of Dunkerque LNG operating the LNG terminal, will operate the on-land installation. As to marine bunkering, Dunkerque LNG will be responsible for the preliminary studies, the engineering, and the investments for the installations to transfer LNG from the terminal network connection as far as the loading arm. Exmar will handle the preliminary studies, the engineering and the building of a bunkering ship.

The first phase of the project will see the loading arms and the main wharf of the LNG terminal, now under construction, adapted to rapidly allow the supply of LNG to ships with capacities of up to 2,000 cubic meters. The second phase will be the construction of a marine station specifically dedicated to bunkering, which could accommodate ships with capacities of between 2,000 and 20,000 cubic metres.

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