H&Z Contributing the China Scheme of LNG Industrial Chain

He Baoxin

For more than 20 years, CSSC Hudong-Zhonghua Shipbuilding (Group)Co., Ltd. （H&Z）adheres to taking the LNG storage and transport equipment manufacturing as the core strategy, and has blazed an extraordinary path from the introduction, digestion and absorption to independent R&D, independent innovation, and then to completely independent design and construction of large LNG carriers. In the next step, the company will continue to persist in the concept of “innovation leading green &safety”, scientifically apply the concept of system engineering, make every effort to build the whole industrial chain management system of LNG, follow the development goals and paths down to the ground and contribute to the world China scheme for the whole industrial chain of LNG.

On September 20, 2018, CSSC officially issued its outline for highquality development strategy (2018-2050), stating that technological competitiveness should be strengthened in the development of shipbuilding and offshore engineering industries,conversing from pursuing scale and speed to quality and benefit, vigorously transforming to advanced manufacturing and intelligent manufacturing, actively expanding the field of marine resources development equipment, optimizing the product structure, implementing the product strategy of standardization and serialization of conventional ship types and professionalization of special ship types, focusing on improving market share, putting effort into fine management, and exerting to building comprehensive advantages for global leading shipbuilding and offshore engineering industries.

For a long time, Hudong-Zhonghua Shipbuilding has been dedicated to building a comprehensive LNG industry chain, and has achieved outstanding results. It is currently the only shipbuilding company in China that can build high-end large LNG carriers.At the same time, it is also a model of professional development, design and construction of special ship types in the industry. On this basis, it is the right time for CSSC to build the LNG industry chain.

During the 19th International LNG Conference (LNG 2019) held not long ago, Hudong-Zhonghua Shipbuilding successfully held a seminar on the development of LNG storage and transport equipment with the theme of “innovation leading green & safety”. It showed to the world the difficult struggle course of Hudong-Zhonghua Shipbuilding constructing the whole industrial chain of LNG and the good vision of moving forward to the “pioneering period”.

Chen Jianliang, chairman of Hudong-Zhonghua Shipbuilding, said at the seminar that the demand for clean energy is increasing day by day, and the increasingly prosperous LNG trade and transport push LNG storage and transportation equipment manufacturing standing in the the market tuyere.Hudong-Zhonghua Shipbuilding,which has always put the strategy of serving the country and practicing social responsibility in the first place, started the R&D of large-scale LNG carriers as early as 1997, when China launched the first overseas LNG introduction project and successfully delivered China's first large LNG carrier in 2008. Through more than 20 years’ effort, Hudong-Zhonghua Shipbuilding, under the leadership of CSSC, has adhered to the strategy of taking the LNG storage and transportation equipment manufacturing as the core, and has blazed an extraordinary path from the introduction,digestion and absorption to independent R&D, independent innovation, and then to completely independent design and construction of large LNG carriers. At present, Hudong-Zhonghua Shipbuilding has built the capability to build No.96 and MARK III LNG carriers at the same time, and the product line has been broadened to the fields of LNG filling ship, LNG-FSRU, LNG powered ship,etc. More than 20 large LNG ships were successfully delivered. In 2019, fresh breakthroughs were made in FSRU and super large container ship modified LNG power system and so on, and it has become the only shipyard in China that has built a large LNG ship and has the capability to expand the equipment of the whole industrial chain of LNG.

Effective Tools Required for Good Work

After more than 20 years of practice,cultivating and accumulation, Hudong-Zhonghua Shipbuilding has been getting mature and growing up. Its third “10-year pioneering period” began in the process of building the whole industrial chain of LNG. Song Wei, deputy chief engineer of Hudong-Zhonghua Shipbuilding,presented a series of achievements in detail at the LNG Storage and Transport Equipment Development Seminar.

Professional facilities have been upgraded to reach the world's leading level. In September 2018, Hudong-Zhonghua Shipbuilding built the world's first automated production line capable of manufacturing the latest generation of L03+ insulation box products in the GTT NO.96 series, compatible with GW insulation box products, and obtained GTT approval certificate. This is not only the first L03+ automatic production line in China, but also the first in the world. In the process, Hudong-Zhonghua Shipbuilding also broke through the process difficulties of automatic filling and compaction from powdered perlite to strip glass cotton, realized automatic production, and became the global leading enterprise in the construction of L03+ LNG ships.

Soft power continues to tamp,and moves to a new level. Since 2018,Hudong-Zhonghua Shipbuilding has vigorously promoted the construction and operation of the National Key Laboratory for Energy LNG Marine Storage and Transport Equipment, with the expansion of its member units to 11, and the establishment of a professional LNG technology research institute to widely carry out collaborative cooperation within the industry and constantly enhance soft power. At the same time, in 2018, the company also obtained two scientific research tasks, “Integrated LNG Power Generation Ship Study”, “Domestic Product Application of MARK III Thin Film Cabin”, which were established by MIIT, to carry out forward-looking research on a regular basis and maintain technological leadership.

The industrial chain extends faster and forms a series. In February 2018,Hudong-Zhonghua Shipbuilding won the world's largest thin film LNG refueling vessel order to build an 18600 cubic meter LNG refueling ship for MOL Company. In February 2019, it obtained the world's first large container ship LNG power system modification order, refit a 15000 TEU container ship into a dualfuel power container ship for Hapag-Lloyd. It is expected to sign an order to convert an old 140000 cubic meter steam propulsion LNG ship into FSRU this year.

The construction capacity has continued to improve and the product line has been continuously expanded. Since 2018, Hudong-Zhonghua Shipbuilding has vigorously promoted the construction of MARK III liquid tanks, and has been equipped with special tooling equipment for MARK III enclosure system construction, completed special welding and adhesion process training, and the construction of MARK III tank is going on smoothly. In February 2020, Huodong Zhonghua will deliver the LNG refueling vessel of MARK III FLEX. At present,the construction capacity of Huodong Zhonghua thin film tank has achieved full coverage. Two thin film types --No.96 series and MARK III series -- are available for customers to choose from.

The construction cycle is constantly shortened and the production efficiency is steadily improved. In recent years,Hudong-Zhonghua Shipbuilding has accelerated the innovation of construction technology, promoted the outfitting of tanks in the dock, improved the integrity of launching, and greatly shortened the construction cycle. The YAMAL LNG ship project is progressing smoothly,and two ships have been launched,which are in the stage of mooring and commissioning of the wharf. The first ship will be delivered in 2019, realizing the 30-month completion from contract signing to delivery. At present, the company holds 15+1 ships orders for all kinds of LNG products, including 6 LNG vessels with 174000 cubic meters,2 LNG-FSRU vessels with 174000 cubic meters, one 18600 m3 refueling vessel,five 22000 TEU LNG-powered container ships, one 15000 TEU container ship LNG power system modification project,and one FSRU retrofit ship to be signed.

Work out Solutions to All Types of LNG Equipment

Hudong-Zhonghua Shipbuilding has been trying to build an all-round LNG industry chain, covering the upstream mining equipment, such as FLNG for the deep sea and AS LNG for the near-shore, and transport equipment for the middle reaches such as the LNG carrier and the ethane carrier,receiving and storage equipment for the downstream such as LNG-FSRU, landbased LNG storage tank, and application equipment for end user such as integrated LNG power generation ship, the LNG refueling vessel and LNG power system modification to provide solutions for various LNG equipment.

A full range of LNG carrier design solutions. Hudong-Zhonghua Shipbuilding continues to innovate solutions to LNG ships, developing a complete spectrum of LNG ships ranging from 20,000 m3 to 270,000 m3, which can carry NO.96 series and MARK III series thin film tanks, and cover conventional and polar ice-breaking LNG ships, providing comprehensive solutions for LNG transport.

The company fully inherits the advantages and valuable experience of previous 4 generations of LNG vessels(G1 “Changqing series”, G2 “Changjian series”, G3 “Chang'an series” and G4 “Changxing series”), integrates the latest technology and design concept, and plans to launch the latest upgrade design G4+ “Changhui series”. Main features of the 174,000 m3 NO.96 L03+ LNG ship and 174,000 m3 Mark Ⅲ Flex LNG ship with the G4+ “Changhui series” design include the following four major aspects.First of all, the new-generation-style twin-skeg linetype design with energysaving device can optimize and improve ship speed and resistance. Secondly, the integrated lightweight design can realize the optimization of empty ship weight.Thirdly, an all-round energy-saving design concept, such as a power-saving gas supply system design, is adopted.Finally, a plurality of flexible optional items are available, such as a cryogenic spray-type re-liquefaction device, an air-lubricated drag reduction system, and the like.

At present, Hudong-Zhonghua Shipbuilding has completed G4+“Changhui series” 200,000 m3 Panama handysize LNG ship design.The ship, designed in four cabins, can pass through the New Panama Canal and have access to all LNG shore stations in the United States. The ship length is controlled within 300m, which is close to the length of the conventional 170,000 m3 class LNG ship and can be compatible with the conventional mainstream shore stations. Compared with the conventional 170,000 m3 class, the capacity of the cabin has been increased by 15%. It has been recognized by ABS on principle and has the conditions for receiving orders.The company is developing the 230,000 m3 Panama's largest LNG ship scheme for the G4+ "Changhui series”. In order to be compatible with most of the LNG wharves in the United States (except four shore stations), the four-cabin design is adopted, compared with the previous 216,000 m3 Q-FLEX ship type using the 5-cabin scheme, the number of cargo cabins has been decreased with more cargo space, offering obvious cost advantages. It is an economical and efficient solution in the future, and the principle approval by the classification society is under way.

At the same time, for the Arctic LNG project, Hudong-Zhonghua Shipbuilding developed 175,000 m3 Arc7 class polar ice breaker LNG ship.The ship has the function of two-way ice breaking at bow and stern, and can sail independently without cover. The maximum ice breaking capacity is 2.1 m very thick ice and 8 m loose ice.Hudong-Zhonghua Shipbuilding carried out the first round of ice pool test in Aker Arctic Company of Finland, on the basis of which the hull line was optimized and further optimized with the Russian KRYLOV Research Institute to achieve the expected ice breaking goal in the second ice pool test. The ship form design has obtained principle approval by by DNV GL and LR.

Ethane carrier solution. At present,the design scheme of the 93,000-160,000 m3 large-scale ethane carrier developed by Hudong-Zhonghua Shipbuilding has completed the ship model test. It is reported that the ship can customize the most appropriate solution according to the specific volume and route of the customer, and has obtained the principle approval of ABS and CCS and has order receiving conditions.

LNG-FSRU series solution. The 20,000m3-210,000m3 LNG-FSRU series design scheme developed by Hudong-Zhonghua Shipbuilding can not only provide a new shipbuilding solution, but also provide a solution to convert the old LNG ship into an FSRU.The general-purpose 174,000 m3 LNGFSRU has both the functions of FSRU and LNG carrier, and the regasification capacity reaches 750 million cubic feet per day. The heating mode includes open, closed and hybrid. In addition, the company has developed 175,000 and 270,000 m3 barge-type FSRU series design scheme, with no propulsion system and simplified mooring design,greatly reducing the construction cost. At the same time, according to the situation of the applied sea area, the scheme can also provide the double row cargo cabin design and the single point mooring turret scheme design.

In 2015, Hudong-Zhonghua Shipbuilding also completed the fourth vaporization chain installation of a 170,000 m3 class LNG-FSRU. At present, Hudong-Zhonghua Shipbuilding has developed a technical scheme to convert different types of LNG ships, such as steam turbine and electric propulsion,into LNG-FSRU, and has converted the complete engineering scheme of an old 140,000 m3 steam turbine propulsion LNG ship into FSRU.

FLNG solution. Hudong-Zhonghua Shipbuilding has undertaken scientific research tasks of a number of national projects, and in close cooperation with shipowners such as CNOOC,TECHNIP and SBM, Hudong-Zhonghua Shipbuilding has developed the design scheme of 170,000 m3 FLNG, and preliminarily has the capability of designing and building the FLNG main hull.

LNG refueling vessel solution.Hudong-Zhonghua Shipbuilding has developed the serial scheme of 8,500-20,000 m3 film-type refueling vessel.When the refueling capacity of the 18,600 m3 refueling vessel under construction is 1,600 m3/ hour, it can refuel the world's largest, 220,000 TEU LNG-powered container ship, and also server other LNG-powered ships.

LNG fuel tank solution. Hudong-Zhonghua Shipbuilding has developed two solutions to LNG fuel tank. The MARK Ⅲ film-type LNG tank is suitable for large-capacity LNG fuel tanks, and will be applied to the 22000 TEU container ship constructed for CMA CGM, and the current fuel tank construction is progressing smoothly.Type B tank is used for medium-sized LNG fuel tanks, such design has been approved in principle by DNV GL and ABS.

LNG power container ship modification scheme. Hudong-Zhonghua Shipbuilding has undertaken Hapag-Loyd 's first contract for the conversion of 15000 TEU container ships into LNG-powered ship, including 6500 m3 Mark III LNG fuel tanks. The company has been able to provide technical solutions for the conversion of various types of ships into LNG power systems.

Integrated LNG power generation ship solution. Hudong-Zhonghua Shipbuilding has developed a series of solutions to 100-350MW integrated LNG power generation cabins. Integrated power generation ship is an efficient one-stop solution in coastal power shortage areas. At present, the integrated power generation ship developed by the company has been recognized by the classification societies.

Make Great Efforts to be Strong and Refined

Chen Jianliang stressed that China's LNG demand remains robust and the market for storage and transport equipment is very broad. In 2018, China imported 90.39 million tons of natural gas, an increase of 31.9% over the same period of the previous year, surpassing Japan as the world's largest importer of natural gas for the first time. Among them, 50% of the annual import of natural gas depended on maritime transportation.In the foreseeable future, China's LNG import demand will continue to maintain high growth. Compared with the huge import demand of LNG, the scale of LNG storage and transport equipment industry in China is still relatively small,the development is still in the stage of“following”, the supply chain system is not complete, and many key equipment,materials and techniques still depend on imports. In the face of broad market demand, Hudong-Zhonghua Shipbuilding will warmly welcome global energy,shipping, finance, as well as design,shipbuilding, marine equipment and other industrial chain upstream and downstream enterprises to participate in the development of China's LNG storage and transport equipment industry with an open mind. Let’s conduct friendly cooperation,fair competition, achieve mutual benefit and win-win result, together promoting vigorous development of China's LNG storage equipment industry.

In the next step, under the guidance of the high quality development strategy outline of CSSC, Hudong-Zhonghua Shipbuilding will adhere to the concept of“innovation leading green & safety”,scientifically apply the concept of system engineering, and make every effort to build the whole industrial chain management system of LNG. In accordance with the development goals and paths, we should further deepen and refine the development and design of ship forms, focus on strengthening and refining, contribute China scheme for the whole industrial chain of LNG to the world, and strive to move forward towards the goal of high quality development.