DNV GL establishes LNG group in North America

To meet the rapidly growing demand for a wide variety of LNG related services, DNV GL has established a group of LNG experts in North America.

In addition to deep LNG expertise, the Houston-based “LNG Solutions Group – Americas” is also experienced in all business, risk and regulatory matters specific to the North American market, DNV GL said in a statement.

With the increasingly strict regulation of sulphur emissions in force next year and the already tightened Emission Control Area regulation for the US, ship owners are likely to feel more pain by the rising fuel prices. For instance, due to the new regulations, Marine Gas Oil (MGO), will likely see a price jump in three months, possibly as high as 30% in the short term, and a minimum of 20% in the long term. This has impact well beyond the maritime industry.

“Judging from our list of recently completed projects, you can clearly see the market is about to reach a tipping point, from market, feasibility and risk studies to actual new-buildings, export and bunkering facilities,” says Bjørn-Harald Bangstein, Director of Operations Maritime Advisory, Americas.

As of July 2014 there are 116 LNG fuelled vessels in total (50 vessels in service and 66 on order). Of these, 75 are classed by DNV GL (46 in service, 29 newbuildings), which gives DNV GL a market share of 65%. “We are now doing what we can to meet pent-up demand for LNG services also beyond the maritime industry by drawing on our expertise from Oil and Gas. This allows us to offer an unrivalled set of capabilities, from major export or liquefaction projects to small scale bunkering and everything in between,” says Bjørn-Harald Bangstein.

”More than any other company, DNV GL has championed LNG as a solution for some of the main challenges facing the maritime industry: fuel cost and emission reductions. Combined with the abundance of cheaper natural gas in North America this contributes to a surge in LNG activities. We are happy to now see shipowners, yards, ports, bunkering operators and LNG proponents in general acting to be well positioned for LNG,” says Bjørn-Harald Bangstein.

Regulatory certainty underway

“Through our interfaces with the US Coast Guard, both formal and informal, we know that they are now finalizing the remaining regulatory requirements on a detailed level. They are doing so in an open and consultative manner that involves the industry and prevents surprises and misunderstandings. Naturally there could be additional state, county and municipal regulations. But with a national regulatory framework designed to prevent major hazards using a risk based approach, particular local variations can be addressed through risk assessments, allowing for a consistent and predictable national regulatory framework,” he concluded.

Drawing on experiences also from previous LNG projects around the world, the Houston-based group can offer class and advisory services throughout the value chain of LNG. The group has many sets of competencies, according to DNV GL.

DNV GL has also published several industry documents such as Rules for Classification: Gas Fuelled Ship Installations, Recommended Practice for Development and operation of liquefied natural gas bunkering facilities and Competence Related to the On Board Use of LNG as Fuel (April 2003).

The “Rules for Classification: Gas Fuelled Ship Installation” was developed in 2000 and later introduced to the IMO which was adopted as the “IMO Interim Guidelines on Safety for Natural Gas-Fuelled Engine Installations in Ships”, Resolution MSC.285(86) on June 1, 2009.

Press Release, October 16, 2014; Image: DNV GL