Regulatory Frame Best Practice – Applicability in the Bunkering Interface

The maritime industry is undergoing a significant transformation, driven by increasingly stringent environmental regulations and a global push towards decarbonization. As shipping companies seek cleaner fuel alternatives, LNG bunkering operations have emerged as a critical component in this transition. Liquefied Natural Gas (LNG) offers a viable solution to reduce greenhouse gas emissions and air pollutants, making it an attractive option for vessel propulsion.

This article explores the evolving landscape of LNG bunkering, detailing the complexities, advancements, and future outlook of these essential operations that are shaping the future of sustainable shipping.

Port Regulations

Port Regulations are the best vehicle to integrate all the hierarchy for regulatory instruments presented in the introduction to this article. On one hand including the higher level instruments and, on the other, bringing the reference to Technical and International Standards, Port Regulations are important in the adequate definition of the complete legal and administrative framework for Functional and General Requirements for LNG Bunkering OperationLNG bunkering.

Ports should set rules to control LNG Bunkering, and small scale LNG installations, by themselves, in the context and frame of their jurisdiction and meeting closely the relevant national and international applicable legislation. Ports should, in this respect, note that the alignment of port regulations/byelaws with the full hierarchy of legal/reference instruments is fundamental to the harmonized and safe development of LNG Bunkering.

When developing Port Regulations specifically for LNG bunkering PAAs should align these with all the relevant regulatory references affecting the use of LNG as an alternative fuel in shipping, handling of hazardous substances within the port area, transport of hazardous substances by road and waterways.

The applicable regulatory frame, for each individual Port, will be the sum of the different instrument types listed in Sections “LNG Regulatory Framework International and European Maritime Safety OverviewHigh Level Instruments” to “Maritime Standards ExplainedOther References“. Ports should develop their regulations in strict observation of the available instruments, allowing in addition for additional justifiable provisions in order to improve safety in LNG bunkering operations (e. g. in the case of lessons learnt from casualties, incidents or near misses).

Whenever Port Regulations include requirements of higher stringency than those within national regulations, or technical measures understood to be different of those prescribed in International Standards, a substantiated justification should be included, preferably with the inclusion of possible alternative means of compliance. Whenever these alternative means are not expressed, a case-by-case analysis may be a possibility to be considered, allowing for the demonstration of equivalency.

The following points may be considered as core elements for the structure in Port Regulations for LNG bunkering.

• Regulatory Framework.
• Port Organization structure.
• Management System requirements (Safety, Quality, Environmental).
• Risk & Safety (Risk Assessment methodology, Risk Criteria).
• Technical Requirements:
  • BOG management.
  • Interface.
  • Emergency equipment.
  • Communications.
• Operational Envelopes (Weather, Traffic, Visibility, Night/day operations).
• Safety Distances.
• Simultaneous Operations (SIMOPS).
• Authorization process.
• Check-Lists.

Port Regulations should define clearly the Scope in terms of the different LNG bunkering modes. Different modes for LNG transfer will inherently represent different operational considerations and instrumental/technical/legal references. Existing industry guidelines, or best practice documents, usually privilege one, or some, of the possible LNG bunkering modes.

It is, in this context advisable that a specific Port Regulations for LNG Bunkering are adopted by each PAA. With the objective of informing and adequately preparing prospective LNG Bunker Operators. Port Regulations should, as far as practicable, make reference to the standards mentioned in Section Maritime Standards Explained“Standards”, giving special consideration for those adopted as European Standards. Standard code “EN” or “EN ISO“.x

Read also: LNG Bunkering Guide – What It Is and How to Use It

Port Local Regulations/Byelaws, as instruments of local and limited application, should, to the extent possible make reference to existing international standards. Whilst addressing specific aspects related to the safety of navigation, handling and Safety, Risks and Security Aspects in Liquefied Natural Gas Industrytransport of dangerous substances, amongst others, port local rules should, to the extent possible, be aligned with existing published best practice on LNG Bunkering.

Liaison with the relevant competent authorities for different aspects in LNG bunkering is an important point that PAAs should take into account. Notwithstanding the obligations on the Operators/BFOs, to notify and submit the relevant permit request elements, PAAs can, in the best interest of an efficient an optimized process, act as facilitators for the administrative aspects. Port Regulations can include aspects relative to the process flow and steps to be taken into consideration for permitting.

PAAs should promote regular updates of Port Regulations, maintaining an adequate tracking of revisions. They should be free and available for free access through any type of web portal that allows easy download for later reference.

National Policy Frameworks

Port Regulations should be aligned with the National Policy Framework defined at National Level National Policy Frameworks defined as per Article 3 of Directive 2014/94.x in all aspects related to LNG as Fuel. As part of the wider value chain for this Alternative Fuel, Ports represent important elements in the transfer of both LNG as fuel and LNG as cargo. They should therefore be aligned with the main national policy vectors.

Notwithstanding the importance of aligning LNG bunkering developments and infrastructure with the National Policy Frameworks, PAAs should also consider that LNG (Liquefied Natural Gas) as FuelLNG as fuel is a cross-border development. Apart from aligning with national wide policy it is also recommended that PAAs adopt dialogue and cooperation channels to allow shared development of LNG bunkering regulations aiming towards a harmonized approach to control measures.

Whenever evaluating or facilitating in favour of prospective LNG bunkering projects, PAAs are advised to consult closely with the national competent authority for the implementation of Directive 2014/94 on the deployment of an alternative fuel infrastructure. National Policy Frameworks should be able to provide the necessary environment for the consideration of LNG bunkering facilities, in the context of availability of LNG as fuel in maritime core-ports.

In the case of a National Policy Framework containing specific measures of any nature that may determine or influence the permitting process for a give prospective LNG bunkering facility project, PAAs should exercise a facilitating role and assist, wherever possible and relevant, with information to operators.

EU Ports Regulation

In the interest of efficient, safe and environmentally sound port management, PAAs Port Authority or Administrations (PAAs) are mentioned in Regulation 2017/352 as Competent Authority or Managing Body of a Port.x should be able to require that providers of LNG bunkering are able to demonstrate that they meet minimum requirements for the performance of the service in an appropriate way. Those minimum requirements should be limited to a clearly defined set of conditions in so far as those requirements are transparent, objective, non-discriminatory, proportionate and relevant for the provision of the port service. In accordance with the general objectives of Regulation 2017/352, incorporating references to the relevant standards and, where applicable to this Guidance, the minimum requirements should contribute to a high quality of port services and should not introduce market barriers.

PAAs should refer to Regulation (EU) 2017/352 for the establishment of minimum requirements for the provision of LNG bunkering as a port service. Notwithstanding the non-technical nature of this Regulation, it allows the legal vehicle for the relevant technical standards, for equipment and procedures, training requirements and best practice provisions contained in this Guidance.

Port Regulations should comply with Regulation (EU) 2017/352 and, where possible and deemed adequate, to incorporate the relevant references to LNG bunkering technical standards (Section “Maritime Standards ExplainedStandards“), guidelines and other references, as applicable (Sections “Maritime Standards ExplainedGuidelines” and “Maritime Standards ExplainedOther References” respectively). In addition, best practice elements of this Guidance may be considered when developing the LNG bunkering requirements for Port Services. The diagram in figure 1, on the next page, indicates the relevant minimum requirements to LNG bunkering as a port service, suggesting also the relevant section within this Guidance.

In the context of LNG bunkering permitting, PAAs should develop information and adequate communication channels to allow for prospective service providers to be sufficiently prepared to meet the specific requirements for safety, security, staff qualification, equipment certification and any other that are found to be relevant to the adequate completion and submission of a permitting process. In addition, in accordance with art 15 of the Regulation (EU) 2017/352 shall, consult port users on its charging policy, including environmental matters, matters having impact on spatial planning and measures to ensure safety in the port area.

When PAAs are themselves the providers of the LNG bunkering service, careful observation should be given to Articles 6(6) and 8 of Regulation (EU) 2017/352. Minimum requirements for the provision of LNG bunkering service should apply in a context of transparency in the best interest of Safety.

In particular for Risk Assessment on Liquefied Natural Gas TankerRisk Assessment, whenever setting up an LNG bunkering facility, the same requirements for demonstration of safety levels, meeting the relevant risk criteria, should be imposed on either Internal Operators Internal Operators as defined in Reg. 2017/352, Article 8.x or External LNG bunkering providers.

Seveso III Directive – Major Accident Prevention Directive

The decision on the applicability of Seveso III Directive framework Seveso only provides a framework. It will be the risk assessment under the Major Accident Prevention Policy and/or the Safety Report that will determine what technical and organisational risk management measures will actually be necessary.x provisions, to any particular LNG bunkering project plan or solution, should be made at the earliest stage, during the permitting phase, immediately after receipt of a Concept Project and Letter of Intent. In addition to the obligation of notification The obligation is with the Operator/BFO to notify the CA(S). It is not the competent authority that determines. The BFO may however seek confirmation of its assessment. Actual process may be subject to national variations, accounting for each Member State implementation of Seveso Directive.x by Operators/BFO, also PAAs should liaise directly with national competent authorities for Seveso III Directive implementation (CA(S)), with a view to determine the applicability of the Seveso-III directive and the implications.

PAAs can, from a very early stage in the process, as indicated in the best practice flow-chart in figure 6, assume the role of facilitator in the context of the permitting process. Applicability of Seveso III Directive provisions in the classification of a given LNG bunkering location should also represent the indication of important action points to PAAs.

In the context of Seveso III Directive applicability it is important to note and distinguish the concept behind the relevant framework safety provisions. Table 1 below indicates for different establishments which requirement applies. In the context of LNG bunkering also non-Seveso locations/projects are included. In this category would fall a large number of LNG bunkering facilities based on spot LNG bunkering via trucks or LNG bunkering vessels or barges to which a different regulatory framework applies.

Referring to Table 4.14, above, for Upper Tier establishments both MAPP and Safety Report apply, whilst for lower tier only MAPP is required. An important note is however to be made, to clarify that these are, in essence, framework provisions, and not detailed technical requirements. It is quite likely and possible that the current safety practice, or national/local/port regulations, for LNG bunkering projects, facilities and locations, already include similar provisions in place, further detailed at national level, either on the technical or administrative levels. PAAs should make sure that the framework requirements in Table 1 are structured in detail at the technical level.

It will be interesting: Balancing Cleaner Fuel and Environmental Impact in LNG Emissions

PAAs should in all cases require BFOs have a management system; lower and upper tier Seveso establishments a SMS, or non-Seveso establishments, at least some type of management system where, as a minimum the requirements from EN ISO 20519 and ISO/TS 18683 can be included as objectives. Each system has to be in accordance with Annex III. Each system has to be proportionate to the major-accident hazards.

Management Systems that should be considered:

It should be possible to ascertain the implementation of the MAPP by appropriate means and a SMS applied for permitting. Whilst the content and issues to be addressed in the SMS are laid down in Annex III of the Directive, it is again important to note that this instrument in itself is only specifying the framework minimum requirements for the safety management system. It should in essence allow the verification of a management loop (plan – do – check – act).

As per Annex III the SMS should include the part of the general management system which includes the organizational structure, responsibilities, practices, procedures, processes and resources for determining and implementing the MAPP.

The following issues shall be addressed by the SMS:

• Organization and personnel – the roles and responsibilities of personnel, identification of training needs, involvement of employees and subcontractors;
• Identification and evaluation of major hazards – procedures for systematically identifying major hazards, likelihood and severity;
• Operational control – adoption and implementation of procedures and instructions for safe operation;
• Management of change – adoption and implementation of procedures for planning modifications;
• Planning for emergencies – adoption and implementation of procedures to identify foreseeable emergencies by systematic analysis, to prepare, test and review emergency plans to respond to such emergencies;
• Monitoring performance – adoption and implementation of procedures for the ongoing assessment of compliance with the objectives set by the operator’s major-accident prevention policy and safety management system;
• Audit and review – adoption and implementation of procedures for periodic systematic assessment of the MAPP and the effectiveness and suitability of the SMS.

In all requirements related to the framework provisions in Seveso Directive, PAAs should integrate correctly the hierarchy of the different elements, as depicted in figure 2, below. The Safety Report, being a central element of the requirements applicable to the Operators, following the interpretation leading to Seveso framework applicability.

Following the previous point, and again with the focus on figure 3 in the next page, a suggestion is made for grouping LNG bunkering solutions into 4 (four) different groups, depending on the possibility of onsite LNG storage.

The following groups are defined:

A Fixed LNG bunkering solution with onsite storage.

B Mobile Units in LNG bunkering, without onsite intermediate storage.

C Mobile Units in LNG bunkering, with onsite intermediate storage.

D Shore-side LNG energy, either as direct fuelling The use of fuels with flashpoint lower than 60 °C is not permitted as per SOLAS 1989/1990 Amend / Chapter II-2 / Reg. 15.x or LNG-electricity supply.

E Ship-to-ship LNG bunkering, out of area. Ship-to-ship LNG bunkering can take place in the port area (at berth or at anchor) or out of area, at sea.x

The division in the mentioned group in the previous point reflects and is aimed to capture the level of prevalence of a given LNG quantity close to the receiving ship or at any point with the port area. It reflects the need to address safety of LNG bunkering projects on the basis of how much LNG is onsite, and for how long. To this end PAAs should liaise with national Seveso competent authorities at the earliest possibility, as suggested in R4.18, accounting for the need to determine the necessary provisions, either from direct application of Seveso III Directive or, alternatively, for those cases falling within its Article 2.2.(c), by adopting the best practice suggested in this Guidance.

Sub-division presented in figure 3 is only indicative and should be taken as an example. It only suggests the need to differentiate between LNG bunkering solutions.

Read also: LNG (Liquefied Natural Gas) as Fuel

Fixed LNG bunkering installations, with small scale storage of LNG (with or without refrigeration/re-liquefaction), constituting Group A in figure 3, should be directly considered as eligible for Seveso III Directive application. Falling outside the derogation in Article 2.2.(c), fixed installations are subject to all provisions in Seveso III and, even if the intended location for LNG bunkering is already a Seveso classified area, it will require an update of all information, with the new hazardous substance (LNG) quantities reflected in the Emergency Procedures on Terminal and First Aid to VictimsEmergency Plan procedures and Safety Report.

To use the definition in the Seveso III Directive, Article 3.1, the whole location under the control of an operator” needs to be considered. This encompasses the storage site and the area adjacent to it, including all infrastructure and equipment elements connected to the storage tank downstream to the to the bunkering location/connection point (figure 4 and 5).

Seveso III Directive provisions are not applicable to the transport of dangerous substances and directly related intermediate temporary storage by road, rail, internal waterways, sea or air, outside the establishments covered by this Directive, including loading and unloading and transport to and from another means of transport at docks, wharves or marshalling yards. Seveso III – Directive 2012/18/EU – Article 2.2.c) x

For this reason, LNG tank trucks, railcars, and other mobile units, are not considered under the scope of Seveso III Directive, as Seveso establishments as long as they fulfil the conditions of Article (2)(2)(c). However, when these mobile units are used as a means for transferring LNG to a marine vessel, the location where the transfer occurs (i. e., any area on shore immediately adjacent to such waters, used or capable of being used to transfer liquefied natural gas, in bulk, to or from a vessel) can become subject, to Seveso III Directive provisions, depending on the circumstances.

PAAs should nevertheless be aware that LNG tank trucks, railcars, and other mobile units are subject to additional, existing international or local requirements.

Following R3.9, and considerations in Section “LNG Regulatory Framework International and European Maritime Safety OverviewEurope“, table “LNG Regulatory Framework International and European Maritime Safety OverviewSeveso III Directive-applicability to LNG bunkering“, the applicability of Seveso III Directive requirements to possible intermediate storage situations, as the ones presented in Table “Balancing Cleaner Fuel and Environmental Impact in LNG EmissionsLNG Bunker vessel/barge – Methane release mitigating measures” (situation 1, 2 and 3) is subject to a case-by-case assessment from PAAs and Seveso III competent authorities, which should, in the best interest of safety, have the following elements into consideration:

a. Actual or anticipated quantities of LNG in bunkering location/intermediate storage, taking into consideration also other dangerous substances present in the location.

b. Part of the distribution/transport chain where the bunkering /intermediate storage element is integrated.

c. Duration and frequency of the bunkering or intermediate storage at the location.

d. Other risk factors at the location or in its proximity such as the intermediate storage of other hazardous substances.

In the case that the location where LNG bunkering is being proposed is already a Seveso establishment the classification of that location should be subject to a revision, including careful consideration for the full aggregation of hazardous substances, in addition to the LNG storage/intermediate storage. For a Lower-Tier establishment, even if outside the scope for a Safety Report (Article 10) or an Emergency Response Plan (Article 12), it is advised as a good practice to also require the application of the technical provisions already in ISO/TS 18683 and EN ISO 20519. Requirements for Risk Assessment and reference to an Emergency Plan are already part of both ISO/TS 18683 and EN ISO 20519. There is however an important difference between what is prescribed as a Safety Report in Seveso III Article 10, and an actual Risk Assessment. The Safety Report is more representative of a Risk Study, where Risk is not a specific figure to be calculated. Assessment against relevant criteria is, in this sense, not possible. Whereas the Safety Report provisions from the Seveso directive provide the framework for the overall Safety Study, the Risk Assessment provisions, from ISO technical standards, provide for the Technical provisions relevant to evaluate Risk.x

Apart from the total volume of hazardous substance, in this case LNG, other elements should be taken into account which will be relevant for the Safety Report. ANNEX II in Seveso III Directive (Minimum data and information to be considered in the safety report referred to in Article 10) lists the minimum elements to be considered. It is important however to underline that requirements for Risk Assessment will very likely already be in place, whether it is a fixed installation or a mobile unit. Even if Seveso III Directive may, on a first analysis, exempt mobile units, requirements from other instruments may be in place and Risk Assessment and Emergency Plan may be already part of the requisite for the LNG bunkering project to be developed in the first place. Port Regulations play here a fundamental role in bringing the non-binding provisions from International Standards such as ISO/TS 18683 and EN ISO 20519, into an enforceable status.

The process to determine the applicability of Seveso III Directive to a given LNG bunkering location, independently of the LNG bunkering solution designed, will be very much dependent on a case-by-case assessment by the operator, ideally in cooperation with the competent authorities regarding the proposal as described in the LNG bunkering Concept Project and Letter of Intent, to be submitted by the prospective BFO and possibly endorsed by the TO. The diagram in figure 6, below, proposes a procedure for confirmation of possible Seveso classification for the intended LNG bunkering location. A short description of the process is presented in Table 3, with explanations to the diagram in figure.

As an alternative good practice approach it is possible to define a more simplified way of segmenting Major Accident Prevention application accounting for a staged application of different instrument provisions, following the outline of table 2, in the next page.

EIA Directive

The EIA Directive is, together with the Seveso Directive, an instrument with a strong potential to influence and shape the permitting process for LNG bunkering projects.

Having this in mind, and following the previous section where the applicability of Seveso was addressed, it is now important to highlight that LNG bunkering projects fall under the scope of the EIA Directive (Annex II) and have to undergo a screening by the national authorities to determine whether they need to be subject to an EIA procedure. PAAs should here exercise an important role in conveying updated and accurate information to prospective BFOs.

It will be interesting: LNG IMO Tanks/Containment Systems

EIA Directive (2011/92/EU as amended) The initial Directive of 1985 and its three amendments have been codified by DIRECTIVE 2011/92/EU of 13 December 2011. Directive 2011/92/EU has been amended in 2014 by DIRECTIVE 2014/52/EUx applies to a wide range of public and private projects, which are defined in Annexes I and II. For projects listed in Annex II, the EIA competent authorities have to decide whether an EIA is needed.

The EIA also specifies the requirements on public participation in the process. This, together with the Public Consultation and information from Seveso Directive provisions, underlines the importance of the public involvement in the process. PAAs should be well informed and, consequently, inform adequately prospective BFOs, which applicable criteria is in place for EIA application. The indicative process is presented below, in figure 7.

IGF Code

For ships certified according to the IGF Code (IGF Code ships) the application of a specific LNG Bunkering Plan “LNG Bunkering Plan” should here be understood in the exact terms. The concept extends from the IACS LNG Bunkering Guidelines (Rec.142), where it is defined as “LNG Bunkering Management Plan”.x should meet all the requirements outlined in Chapter 8, Sections 18.4, 15.4 and 15.5 of the Code. Being all provisions specifically included in the code to ensure safe bunkering equipment, control and operations, it is important that, to the extent possible, all other parties involved in the LNG bunkering operation share the safety concept, terminology and procedures. National or local regulations for LNG Bunkering Operations should be adapted to IGF Code Goals, Functional Requirements and requirements outlined for the control and safety on LNG bunkering operations.

Where different terminology is found, coexisting in the LNG bunkering interface, all parties involved should, as a best practice approach, align the operation and safety concept with the requirements of the IGF Code. Functional requirements are extracted from the IGF Code and included in table LNG Regulatory Framework International“IGF Functional Requirements – Applicability to Bunkering Interface”. IGF functional requirements should also be respected, wherever applicable, in the whole bunkering interface.

For non-IGF Code ships, i. e. for ships built or converted to LNG as fuel before the entry into force of the Code (1st January 2017), the safety principles followed in bunkering should follow the same IGF regulations outlined in 18.4, especially in terms of responsibilities, pre-bunkering verification procedures, control systems, and all other requirements related to LNG bunkering operation.

LNG Bunkering Guidelines and Standards

PAAs should have the LNG Bunkering Guidelines listed in Section Maritime Standards Explained“Guidelines” as the relevant documents where industry best practice is reflected, resulting from a significant number of stakeholders in the Industry with experience in LNG. Functional requirements for LNG bunkering equipment, where listed, are also the reflection of current experience and good practice, not only in terms of the LNG Transfer System equipment but also regarding operational aspects. PAAs should nevertheless be aware that these documents are not mandatory in nature and should, in the context of a legal framework, be incorporated as references into national or Ports, Terminals and Jetties – Role and Significanceport regulations.

Read also: The Role of LNG Bunkering Infrastructure

For the particular case of ISO/TS 18683 or EN ISO 20519 a possible incorporation by reference into national or port regulations, would have to take into account the different nature of these two documents. Whilst some parts are repeated in both documents, there are very relevant aspects which can only be found in one or the other. This is the case with “Risk Assessment” (where ISO/TS 18683 includes a more thorough list of considerations) or with “Management system/quality assurance” where only EN ISO 20519 includes provisions that can be considered relevant. Reference to Section 7 in EN ISO 20519x

PAAs should note that EN ISO 20519 does not constitute a full substitute to ISO/TS 18683. Notwithstanding the repetition of some elements (as highlighted in section Balancing Cleaner Fuel and Environmental Impact in LNG Emissions“Methane Release Mitigation” and Balancing Cleaner Fuel and Environmental Impact in LNG Emissions“Good Environmental Practice for LNG Bunkering”) both documents should be read together. As a Technical Specification ISO/TS 18683 contains elements which are relevant to design and procedures.

Existing LNG Bunkering Guidelines contribute collectively to the safe development of LNG bunkering, helping to promote safety though harmonization and shared responsibility. Provisions established by port regulations should, as far as reasonable and practicable, conform to the relevant technical aspects with the Guidelines, making reference, first, to international standards and, secondly, wherever more convenient or applicable, to industry guidance documents.

EN ISO 20519 is referred to throughout this Guidance as the standard that should serve as a basis for certification, accreditation and quality assurance for all stakeholders. The EN notation is here essential to ensure that, at least in the EU the standard is incorporated in to all EU Member States as a national standard.

This standard represents an instrument of direct support to the IGF Code, providing the frame for implementation of IGF Section 18.4 provisions on bunkering operations.

Summary of Applicable Instruments

Table 4, below, provides an informative summary of applicable regulatory instruments, standards and guidelines in the context of LNG bunkering. Port Authorities should have the summary below as reference when having to quickly decide on the scope of application of each reference.

For the particular case of ISO/TS 18683 or EN ISO 20519 a possible incorporation by reference into national or port regulations, would have to take into account the different nature of these two documents. Whilst some parts are repeated in both documents, there are very relevant aspects which can only be found in one or the.

Author

Olga Nesvetailova

Freelancer

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