Marin gas logistics. Bergen

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1 Marin gas logistics Work package 5 Harbour studies Bergen This study is part of the MAGALOG project and supported by

2 1 Bergen harbour Bergen Harbour, covering also the nearby harbours of Sotra, Øygarden and Mongstad, is one of the busiest ports of western Norway. RoPax traffic includes regular international routes to Denmark, Iceland and Great Britain and a daily domestic route to Kirkenes. Cargo in kt Domestic International Total Port calls Domestic International Total RoRo traffic has connections to both UK and continental Europe mainly via Stavanger/Tananger, and a cargo potential related to oil- and oil service companies are present as some 30 trucks out of a total of 100 serve the Stavanger Bergen connection on a daily basis with oil equipment. 1

3 Foto: Trude Sletteland Even if the official statistics for Bergen Harbour gives a total of port calls a year, equalling 520 weekly, the comparison numbers in the study are significantly lower. The explanations for this is partly found in the number of vessels not being RoRo or RoPax (e.g cement, oil, crude) and the vessels calling on a non-regular basis, but mainly due to the number of domestic short range transportation of cargo and passengers. Weekly 18 departures are registered from Bergen to different ports in Norway and Northern Europe. The routes are served by 18 different vessels. Since 2002 a decrease of transported goods is seen (Source: Bergen Harbour) a decrease mainly caused by reduced volumes being shipped out of the oil facilities at Sture and Mongstad. The volumes of containers and RoRo cargo has increased over the recent years, for containers approximately 12% pa, numbers for RoRo not indicated (Source: Bergen Kommune 2007). The following table with accompanying information on the shipping companies operating out of Bergen shows the activity on the respective week-days. For some routes more than one daily sailing is carried out. 2

4 M T W T F S S Inner harbour Kirkenes X X X X X X X Tananger - Aberdeen X Tananger - Immingham X X Hanstholm X X X Tananger - Amsterdam X Trondheim X 1.1 Trends and developments Bergen Harbour authorities are planning for further development of the inner harbour quay areas and plans to locate all RoPax routes on the same location. The long term plan is to develop a new harbour outside the city center. Neither the short term nor the long term plan is concluded yet. 2 Major shipping companies operating on Bergen 2.1 Sea-Cargo The company operates 7 multipurpose vessels of which four RoRo vessels on a regular basis call Bergen from North Sea ports (Immingham, Amsterdam, Esbjerg and Aberdeen) and links the Norwegian west coast (from Stavanger to Trondheim) to Europe. The company has two new buildings in the pipeline, and further renewal is expected. The company has been a probable candidate for LNG powered vessels for a while and has now decided to go for LNG in the two under construction. 3

5 2.2 Hurtigruten The company operates 11 vessels on the Bergen Kirkenes route, with daily departures from Bergen. The vessels are operated in alternative waters during low-season. The age of the vessels differs from 0 to 52 years, with the majority of the ships built after The fleet structure and normal area of operations makes this company a candidate for transition to LNG, however the alternative usage in low-season will represent a challenge. More newbuildings are not expected in the near future. 2.3 Nor-Lines The company operates 11 vessels along the Norwegian coast, Scandinavia and the Baltic. Out of which 3 are RoRo vessels. All vessels are relatively old (all close to 30 years). Based on age structure this is a potential candidate for transition to LNG. 2.4 Smyril Line The company operates the vessels Norønna on crossing between Bergen, Hanstholm, Lerwick, Torshavn and Seyðisfjörður with one route to Denmark a week and one route to Iceland. The vessel was built in The age structure does not indicate a likely candidate for LNG transition. 2.5 FjordLine The operations of the company was dramatically reduced last year as a result of low earnings but are still operating the Atlantic Traveller, built in 1993, on the route Bergen Hanstholm on a three roundtrips a week basis. The vessel s age and the company s situation do not make a soon transition to LNG probable. The company are in the market to buy another vessel, but this vessel will most likely not run on LNG. 2.6 Norwegian Marine, Håkonsvern Håkonsvern are the largest marine base in Scandinavia. One of the three Coastguard vessels on LNG now under construction, will be located at Håkonsvern and will bunker at Kollsnes. 2.7 Supply vessels Today two supply vessels are running on LNG. They are bunkering at CCB supply base. Two more are under construction. They may be operated from Bergen and use LNG bunkering 4

6 facilities here, but bunkering facilities for LNG are established both at Risavika, Fjord-base and Vest-base and represent alternative bunkering locations. 2.8 Existing bunker facilities in Bergen area The bunkering is mainly carried out from the facilities at Shell and Esso in Byfjorden but also at CCB. Many vessels take fuel from re-fuelling boats coming alongside while moored. LNG is delivered from CCB. 2.9 Age structure The majority of the vessels operating on the Bergen 4 Number of vessels connections are relatively new with 13 vessels 15 years or newer. The average age of this fleet is 16 years, 6 vessels are more than Type RoRo RoPax years. This group of vessels consists of RoRo vessels representing the highest potential for replacement by LNG powered vessels in the near future. Additionally a number of old, small vessels handle coastal domestic transports Summary Most of the regular RoPax and RoRo activities are directed towards the inner port of Bergen. A number of semi regular cargo transports are directed towards the oil bases at CCB and Mongstad, and do represent a future LNG market potential. In this area, the RoRo vessels seem to be the vessels to be closest to replacement based on an age evaluation. Further potentials would exist if more cargo is shifted from road to sea, and if a general renewal of the coastal fleet is realised Potential for CHP on natural gas Bergen Harbour considers to offer ships in the harbour electric power to avoid problems with air pollution N0x, soot and particles. One option is to produce the electricity in a combined heat and power production plant (CHP) fuelled on natural gas and deliver the heat to the 5

7 district heating net passing the inner harbour of Bergen. Gasnor and Hordaland Oil and Gas (HOG) has presented this solution for the harbour authorities, but further steps are not taken yet. The idea is that an LNG bunkering tank also can deliver gas to a local grid to which the CHP installation is connected. 3 Potential locations for a LNG terminal There are three harbour areas of interest for establishing a LNG terminal for bunkering purposes in the Bergen area. These are the inner harbour of Bergen, The Coast Center Base (CCB) which is an offshore supply base, and the Kollsnes area where a LNG production plant is located. Hurtigruten Mongstad Sture Kollsnes CCB Inner harbour Lerwick/Aberdeen Hanstholm/Hirtshals 6

8 Smyril Line/Fjord Line Hurtigruten Sea Cargo/ Nor-Lines 3.1 The inner harbour of Bergen Bergen is developing a new master plan for the inner harbour areas. The plan will not show the location of the LNG tank, but just state that an LNG tank could be put somewhere in the inner harbour. The above illustration shows a possible location. Pale grey indicates planned extensions of the quay areas Advantages and disadvantages It could be difficult to find a location for a bunkering arrangement for common use for all sorts of vessels cargo and RoPax. To satisfy the RoPax vessels the bunkering must take place while the vessels are unloading and loading because of the tight time schedule these vessels have. A tugged LNG barge should be considered. For the cargo vessels running along the Norwegian coast, however, locations such as CCB and Kollsnes are as convenient as the inner harbour of Bergen. 7

9 3.2 Coast Center Base (CCB) CCB is a supply base for the Tampen area of the North Sea. The base is located in Hjeltefjorden, the most used route for the North-South going traffic along the coast. This route is also used for westward bound ships from Bergen. CCBs terminal provides a complete range of logistic services and is manned with well qualified personnel within the various logistical disciplines. There are a total of 800m of deep water quays, project facilities and a terminal with RoRo quay. CCB has collaboration with Bergen Harbour. The terminal is equipped to handle all kinds of goods and facilitates storage both indoors and outdoors and has a bunkering facility for LNG. Two supply vessels operating in the North Sea are bunkering LNG here today and two more are to come. The LNG tank can be seen in the middle of the satellite photo. The owners of the CCB base are positive to new users of their bunkering facility Advantages and disadvantages CCB is a very interesting location for bunkering cargo vessels and supply vessels. Could be some cue problems it takes some (3-4) hours to fill up a supply vessel and there is just one dispenser at CCB at the moment. 8

10 3.3 Kollsnes (Naturgassparken Vest) At Kollsnes, or Naturgassparken Vest as the area also is called, is the location of a LNG production plant. A bunkering facility here will have the advantage of being in immediate nearness of the production of LNG. This location is also located close to the route for the north-south and west going vessels. It is owned by Gasnor and is connected to the two Gasnor owned LNG plants at Kollsnes. Today the quay is only suitable for vessels up to 200 feet, but a new bunkering facility at the public quay to the north is under consideration. 3.4 Procedure towards a building permit In the inner harbour of Bergen a tank solution has to be considered in a detailed areal plan. A barge could be filled at CCB, or even better at Esso or Shell a couple of nautic miles outside Bergen inner harbour. A LNG tank must be put up here then, but permission should not be too difficult to achieve, the existing land use taken into consideration. At CCB a LNG facility already exists, and the capacity of this can be extended. 9

11 At Kollsnes the existing bunkering quay could be used. It should not be to complicated to extend existing quay. The public quay alternative is dependent on a positive response from Øygarden municipality. Bergen harbour has bunkering facilities as shown above at Kollsnes and CCB. Further development is dependent on positive reactions from the local governments 3.5 Recommended solution Bergen Harbour has already two bunkering facilities which both are attractive for cargo and supply vessels. We recommend that the Kollsnes location in Naturgassparken is developed to take larger ships than today. Thus two alternative bunkering locations are available in a distance of 10 nautic miles, offering a flexible and robust solution. When it comes to the international RoPax ferries and the coastal liner, a tender solution should be considered. This should be looked in to in a later phase. 4 Summary Bergen Harbour, covering also the nearby harbours of Sotra, Øygarden and Mongstad, is one of the busiest ports of western Norway. RoPax traffic includes regular international routes to Denmark, Iceland and Great Britain and a daily domestic route to Kirkenes. Most of the regular RoPax and RoRo activities are directed towards the inner port of Bergen. A number of semi regular cargo transports are directed towards the oil bases at CCB and Mongstad, and do represent a future LNG market potential. In this area, the RoRo vessels seem to be the vessels to be closest to replacement based on an age evaluation. There are three harbour areas of interest for establishing a LNG terminal for bunkering purposes in the Bergen area. These are the inner harbour of Bergen, The Coast Center Base (CCB) which is an offshore supply base, and the Kollsnes area where a LNG production plant is located. Of these the Kollsnes area seems to be the most promising locality. Due to the number of vessels calling at the Bergen area, the strategically location along the fairway, and the possibility for supply of LNG from local LNG production, Bergen is an interesting location for a LNG bunkering facility. 10

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