GTT gets ‘disruptive’ – Berterottière talks costs, simplicity and scaled-down LNG designsMon 19 Sep 2016 by Karen ThomasPrint storyEmail usPhilippe Berterottière: “We have to question and revisit that technology for small-scale applications”LNG World Shipping: 2016 has been a slow year for new orders;
what are your expectations, in terms of when shipowners will start
ordering LNG carriers again, reviving demand for GTT containment
systems?Philippe Berterottière: Based on new liquefaction projects agreed in
the last two years, we believe that the market will need an additional ...
GTT gets ‘disruptive’ – Berterottière talks costs, simplicity and scaled-down LNG designsMon 19 Sep 2016 by Karen ThomasPrint storyEmail usPhilippe Berterottière: “We have to question and revisit that technology for small-scale applications”LNG World Shipping: 2016 has been a slow year for new orders;
what are your expectations, in terms of when shipowners will start
ordering LNG carriers again, reviving demand for GTT containment
systems?Philippe Berterottière: Based on new liquefaction projects agreed in
the last two years, we believe that the market will need an additional
50 LNG carriers – and very soon. This LNG will become available in
2018-2019, which means these ships will need to be ordered quickly.In the meantime, we are also looking at opportunities for GTT in LNG
as bunker fuel. We are very focused on developing LNG-fuel tanks for
non-LNG oceangoing carriers – and at cruise ships and container ships in
particular. Here, we may not rely on the shipyards and are looking
instead at partnerships with the outfitting companies that will build
our systems.Can you tell us about those partnerships, and your criteria for choosing these companies?So far, we have three such partnerships; with Endel in France, with Gabadie in Spain and with AG&P in the Philippines. We have built trust with these partners, and they have brought GTT a network able to build our LNG-fuel tanks.All three offer multiple capabilities, have experience in the oil and
gas industries and are skilled at welding techniques, particularly in
stainless steel. They also have the ability to move their workforce to
third-party yards. Above all, they have the management capability to
handle very complex projects.How aggressively are you pursuing additional new partnerships?We are not looking to expand our partnerships in the market for the
time being. We have made a slow start in this market, reflecting today’s
low energy prices and the price gap between LNG and marine gasoil
(MGO).If and when we see the market skyrocketing, we may well seek new
partners – while still insisting on the kind of trust-filled
relationship we have with our three current partners and with the
emphasis on quality. We listen to recommendations and are committed to
the highest quality.When the recovery comes, what markets do you see as your most important targets?The main markets of interest, with our existing partners, are in
southeast Asia. We also believe that LNG as marine fuel will develop in
Europe, where two of GTT’s partners are based. We are also thinking of
developing this kind of partnership in the US and are looking at ways to
do this.This year has brought some exciting initiatives to promote
LNG as marine fuel; GTT has joined some of the biggest players in
shipping to launch SEA\LNG and Engie, Mitsubishi and NYK just launched
Gas4Sea at SMM. Is the tide turning to favour LNG as an alternative
fuel?So, the chicken-and-egg situation? People are working hard to break
that old logic, taking initiatives that prove that we are not locked any
more in that same old dilemma. As far as GTT is concerned, we are
taking the initiative – and at SMM we signed an agreement with CMA CGM, DNV GL, ABB, Solar Turbines and OMT to develop designs for a large, LNG-fuelled container ship.We are developing and refining our technology for this application to
break this dilemma. Once the market grows and develops, we will need
many partnerships of the kinds that you mention. It shows that the
technology is ready and the right networks are starting to exist.The critical factor is the price gap between LNG and MGO, which needs
to be large enough to amortise the cost of the equipment. We don’t have
that at the moment, but we should still take the opportunity to be
better prepared for when things start to happen.What prospects do you see for growth in small-scale and coastal LNG shipping?For GTT, the main issue we need to address is what happens when we
reduce the size of the LNG-carrier structure – when you reduce the size,
you don’t necessarily reduce the cost. That makes our business plan
unbalanced – scaling-down weighs heavy on that plan.We have to be imaginative enough, to be disruptive enough to come up
with solutions for these applications that are more cost-effective.
Right now, we are working on designs for barges that are significantly
more cost effective than small LNG carriers, that may address the
requirement to deliver smaller quantities of LNG in the vicinity of the
largest terminals.We are building a barge designed as a feeder to large container ships
in the US that can also deliver small quantities of LNG. We are looking
to reduce the cost of the structure to make this solution possible –
otherwise, the figures will not match.Construction is under way at Conrad Shipyard on the 2,200m³ barge to deliver LNG to TOTE’s container ships, and we are already drawing lessons from this project. This is very different to the work we do for large LNG carriers.When I spoke earlier about developing partners, it’s also about
working with the small yards that can build these smaller structures. We
have other designs, of 4,000m³, 5,000m³ and 6,000m³, going all the way
up to 30,000m³.You also used the word ‘disruptive’ earlier; it’s a term
gaining common usage in many industries. What does being disruptive mean
to GTT?It’s about being disruptive with regard to technology – our
technology has traditionally been used for very large LNG carriers. We
have to question and revisit that technology for small-scale
applications, making it a lot simpler, adapting to very different
constraints.Simplicity, cost – these things become very important. Because the
ships will not necessarily sail on the high seas, you have to look at
the constraints of the technology and adapt them to very particular new
requirements.The second point about being disruptive is that we think of ways to
make LNG available in very different ways. And the third is about
working with smaller yards that have strong management, able to deliver
high quality. It about being disruptive in terms of technology and in
terms of doing business.What are your concluding thoughts?We believe that LNG is the fuel of the next decade – the way to clean
up the atmosphere. The LNG industry has the expertise to make that
opportunity possible – and the responsibility for making that possible.
That is our commitment at GTT.
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