Safety in LNG Shipping & Terminals : Class Viewpoints on the Critical Needs for Qualified Human Resources

1. IAMU LNG Round Table 28 Feb. – 1 Mar. 2005 Busan, Korea Safety in LNG Shipping & Terminals :Class Viewpoints on the Critical Needs for Qualified Human Resources Sei-Chang Lee Advisory Technical Director Korean Register of Shipping

2. Contents • Introduction • LNG Carriers – Safety with KR • Containment System Approval 3.1 Concept Approval of the Cargo Containment System 3.2 Mock-up Test & Quality Assurance • Test & Inspection of LNGC • Concluding Remarks

3. Introduction • Historical review • 1959. 1 : The first LNG shipment : “Methane Pioneer” – Louisiana, U.S.A • 1975. 11 : IMO Resolution A.328(GC Code)/329(IX) (Existing ship) • 1983. 6 : IMO MSC6(48) IGC Code • 2004 : 175 LNGC + New buildings / 8,750 Crewmen + other personnel • Near future : Rapid growth of LNG industry needs more experts Still to maintain our unparalleled safety record with NO human error • Round Table discussions today : • Tieing together the important features of critical needs for LNG experts • The public concern for the safer management greater than ever Requesting the shakeholders to not only pay attention to safety itself, but also to make an action plan to produce competent human resources.

4. Safety chain in LNG circles Why we need to focus on the SAFETY of LNGC? Owner/operator Terminal Ship’s crew Administration Class Society Ship builder Manufacturer

5. Class Societies’ responsibilities : • Establishment/updating of own Rules and survey guidelines • IMO IGC Code/Res. A 328 • To ensure an acceptable safety & functional reliability in design, construction, repair, maintenance & operation of all merchant vessels as well as LNGC • To approve the Builders’/Owners’ quality management system (ISO/ISM Code) • To assess ships & port facility security plan (ISPS Code) - Regulatory protection measures against any act of terrorism after September 11, 2001 • R & D projects - Formal safety assessment, risk-based management

6. 2. LNG Carriers – Safety with KR2.1 KR, founded in 1960, has been a Member of IACS since 1988 currently classing about 2,090 vessels with an aggregated tonnage of 22.4 million G/T. A major oil and shipping company has recently advised that VLCCs classed by KR is now eligible for acceptance within its vetting system.2.2 KR has worked as a member of evaluation team on behalf of KOGAS (Korea Gas Corporation) at various projects to assess the capability of shipyards and to review LNGC building specifications.2.3 Presently, 18 LNG carriers are in KR class registry as shown in the following table, and more new buildings are expected in the next few years. (11 Membrane + 7 Moss types)

7. LNG Carriers classed with KR (18 Vessels)

8. 2.4 R & D Projects • Structural Analysis (Moss/Membrane type LNGC) • Global structural analysis • Cargo tank analysis • Fatigue/crack propagation - Fine mesh analysis -Fatigue life assessment -Crack propagation analysis -Leakage estimation • Thermal stress analysis • Sloshing analysis

9. Cargo piping system & Thermal design of cargo containment • Program for cargo pipe stress on gas carrier (1993) • Thermal design software for membrane type LNGC (1998) - Temperature distribution around cargo tanks • Heat balance program (1998) • A study on cargo tank filling limit (1998) • Ventilation flow characteristics in hood room (2001) • Shockwave analysis of cargo piping system • Thermal equilibrium & safety assessment of Re-liquefaction system or Dual fuel engine

10. 3. Containment System Approval 3.1 Concept Approval of the Cargo Containment System • Overview • The idea has not found its way into regulations. • The designer of prospective Owners or Builders would demonstrate the acceptability of their system to the Class or Administration. • “Chicken & egg” problem : The designer would not be able to obtain a contract without the approval, and the class would not be able to start plan review before a contract is signed. • Concept Approval : Certificate issued to the designer • Basic approval – system description, design criteria, calculation to be performed • Design approval – system description, design loads, • sloshing load assessment, stress/strength/fatigue assessment • Mock-up tank building & testing

11. Last process : Application to a first ship • Drawing approval • Building survey including survey after first LNG laden voyage • Gas trials • Final approval : After all specified calculations & tests are performed • Int. Certificate of Fitness for the Carriage of Liquefied Gases in Bulk issued under IGC Code • Letter of Compliance (LOC) • Entry into a port of foreign flag vessels carrying bulk liquefied gases is controlled by LOC.

12. 3.2 Mock-up Test & Quality Assurance • IGC Code 4.10.3 For membrane tanks, quality assurance measures, weld procedure qualification, design details, materials, construction, inspection & production testing of components, should be to standards developed during the prototype testing programme. • The Shipyard has to implement an approved quality programme of the construction, testing and inspection of the membrane tank including the inner hull. • To build a Mock-up of a containment system as a part of a tank prior to building of membrane type LNGC. • Materials, Welding procedure specification, welders, Insulation panel/tank, tightness • Certificate of Fitness, Quality System approval

13. 4. Test & Inspection of LNGC • Cargo containment system : Cargo tank structure - Panels, fittings, trihedron, membrane sheet, etc. - Onboard : Inner hull construction, installation of insulation materials, membrane erection, global tightness, etc. • Cargo handling system - Cargo pumping/piping - Boil-off treatment system, valves, etc. • Hull structure • Hull outfitting • - Mooring equipment & miscellaneous items

14. Statutory inspection & certification • - Life saving & fire fighting appliances • Machinery • - Main turbine • - Dual fuel engine/electric propulsion system • - Diesel/turbine generator • - Dual fuel boiler • - Shaftings and propeller, rudder • - Aux. machinery • Automation & electrical part • - Electric power generating plant, switch board • - Integrated automation system • Painting & coating

15. 5. Concluding Remarks • Although LNG is one of the most hazardous cargoes, stringent training for qualified crews and personnel coupled with rigorous design, construction and operational requirements will continuously maintain the unparalleled safety record: • Safety culture in LNG circles should be promoted. • Operators and engineers must be trained that codes & rules represent only minimum requirements. • Specifications & quality management system should ensure that the design, construction & operation are done in a safe manner. • Special training model course for LNG crews should be set up by IAMU and proposed to IMO level. (Int. Convention on Standards of Training, Certification Watchkeeping for Seafarers)

16. Safer design, construction and operation of LNGC requires sufficient qualified human resources for minimum human error: • Hardware-oriented/technical standpoint of structures & equipment • Software system of ship operation & security perspective to manage such bulk hazardous liquids • Rapid expansion of LNG trade needs: • Thousands of skilled crew members, designers, manufacturers, operators and related experts • Education/training for producing qualified LNG personnel with short term and long term projects with cost-benefit modules

17. Time is ripe to establish LNG Training Centers - Amongst them one in Asia : • The right venue & time to have an LNG training center in Asia. • Where/How to do : Busan, Korea is the hub of Asian ports and the center of LNGC building, equipment manufacturing and LNG trade; • “Cost-effective/Proactive”

18. KR IS YOUR BEST PARTNER