Navantia extends its LNG net

A look at the service logbook of Navantia Shiprepairs Ferrol Estuary (NSFE) shows that the Spanish company repaired 87 different LNG carriers over the 1992-2014 period on behalf of 32 shipowner/manager clients

Repeat business has become a strong feature of Navantia’s work programme. A couple of older LNGCs visited the yard 13 times during the past two decades. Admittedly some of those bookings were quick stops for minor repairs.

The logbook reveals that 223 individual LNG carrier repair projects were completed over the 1992-2014 span. The focus on such ships has intensified over the past six years; some 137 of the service contracts, or more than 60 per cent of the overall total, have been fulfilled since 2009.

NSFE operates two separate yard facilities within the El Ferrol port complex, Ferrol and Fene. Between them the two centres completed 20 LNG carrier repair projects in 2014, representing around 50 per cent of all commercial vessel servicing work carried out by NSFE during the year.

A notable milestone was passed in early September 2014 when Meridian Spirit arrived for servicing. The newcomer pushed the number of LNG carriers at the two NSFE yards to a record high of seven. Ferrol had Matthew, British Emerald, Meridian Spirit and LNG Port Harcourt in for repairs while across the harbour Fene had Cheikh El Mokrani in drydock and LNG Gemini and LNG Leo alongside its fitting-out jetties.

Five of the seven were membrane tank vessels, with both the GTT No 96 and GTT Mark III systems represented in the complement. The yard has recently upgraded its in-house Gaz Transport & Technigaz (GTT) membrane tank welding school with the provision of a new workshop/classroom complex. The repairer has also been working closely with GTT, class societies and customers to define and implement innovative solutions that tackle the new technical challenges involving membrane containment systems.

Among the key customers providing repeat LNGC business for Navantia are BP, with which the repairer has a strategic alliance, Nigeria LNG, Exmar, Hyproc Shipping, BW Gas, NYK, Golar, Teekay and Knutsen. The yard points out that its proven abilities with LNGC repairs also continue to attract new customers. Breakthrough ships in this category over the past two years include Wilgas, managed by Awilco, and Sonangol Sambizanga, which was built for Chevron’s Angola LNG project.

The Sonangol Sambizanga project involved alongside servicing work following completion of a comprehensive technical and commercial audit of the vessel by Chevron, Sonangol and Angola LNG. The work marked the first visit to the yard by a member of the fleet built to serve the new Angola LNG project. Although the Angola ships are comparatively new, the project partners developed a lifecycle maintenance programme for the vessels during the design and construction phase and its provisions have been rigorously followed since the fleet’s entry into service.

Another ongoing development project is the joint initiative with Gas Natural and Reganosa under which shipowners whose vessels have been serviced by Navantia can take on a volume of LNG at the Reganosa receiving terminal in the Ferrol estuary for tank cooldown purposes. In this way the LNG carrier can proceed to its first loading port and commence cargo transfer operations on arrival without delay. The principals have recently initialled another formal agreement with the aim of further improving this service.

Another local LNG project with which Navantia is involved is a feasibility study on the potential for establishing the Ferrol estuary as an LNG distribution and bunkering hub for Spain’s northwestern Galicia region. The scheme comes under the aegis of the European Union’s Trans-European Network – Transport (TEN-T) programme and would be eligible for funding from Brussels if given the green light.

The shiprepairer is part of a study team being led by Reganosa. The other members are Ferrol Port Authority, the University of Santiago and the Galician Institute of Energy (INEGA). Amongst the elements of the investigation being undertaken by Navantia is the design of an LNG bunker/feeder vessel which would have a capacity in the 3,500-7,000m3 range and be able to carry out ship-to-ship (STS) LNG transfers, including to LNG-powered vessels needing to take on bunkers.

Another aspect being considered in the study is the design of barges and floating LNG supply stations. The repair yard is utilising its knowledge and experience of LNG carrier structural design, propulsion and containment systems and shipboard equipment in its work for the project. NSFE has also analysed the possibility of converting four 15,500 dwt chemical tankers and an oil shuttle tanker to enable them to run on LNG.

One particular LNG carrier repair project which is standing Navantia in good stead in its contribution to the proposed TEN-T initiative is that involving the floating storage and regasification unit (FSRU) Golar Winter. Extending beyond a straightforward repair and maintenance contract, the job was undertaken in 2013 and involved modification work to get the ship ready for a new regas vessel role as Brazil’s third LNG import terminal at Bahia. The installation of marine loading arms on Golar Winter’s main deck to enable STS transfers from LNG delivery tankers moored alongside was part of the package.

Navantia is keen to build on its involvement with the extension of the LNG supply chain that is currently taking place. For a start the yard hopes to secure the newbuilding contract for any LNG feeder/bunker vessel that the TEN-T feasibility study for northwestern Spain deems to be warranted.

Secondly its vessel-conversion capabilities could be extended to encompass the modification work required to provide a ship currently powered by a conventional propulsion system with the ability to run on gas. Such conversions would entail the modification or replacement of existing engines, the installation of LNG fuel tanks and bunker connections and the fitting of gas feed arrangements.

Navantia is expecting an even busier LNG carrier repair year in 2015 as a result of the decline in the price of oil and a closing of that window of arbitrage opportunity offered by the shipment of European cargoes to Asia. With LNG prices in Asia and Europe now on a par, more cargoes and ships are expected to remain in the Atlantic Basin, a region where the repair yard is a prime service provider.

At the time of writing, with the year only a month old, already four LNGCs graced the NSFE berths. LNG Gemini was laid-up alongside, LNG Leo returned for a drydocking and Excelsior has departed with repairs completed. In addition Barcelona Knutsen at the yard for a routine service. LNG

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