Opportunities for Small Scale LNG

Nuno Afonso Moreira, CEO

nmoreira@dourogas.pt

Opportunities for SSLNG

1. Small scale LNG distribution
LNG distribution is the logistics setup of natural gas in a liquid condensed
form to reach remote areas without piped gas and other viable alternatives.
This could include isolated industrial users such as steel mills, chemical
plants or Combined Heat and Power (CHP) plants as well as for local
pipelines after being regasified and for vehicle filling stations.
Small scale LNG distribution can be done over land and sea. Either trucks or
railways can do land distribution where the LNG can be carried in an ISO
container or in a fixed tank attached to the truck or railcar.

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Opportunities for SSLNG

1. Small scale LNG distribution
Except for some good examples such as United States, Norway, Japan, Spain
and Portugal there is an undeveloped infrastructure for small scale LNG
distribution in most countries.
However many markets seem to be developing towards breaking bulk of
large LNG shipments into smaller distributable parcels at large import
terminal.

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Opportunities for SSLNG

1. Small scale LNG distribution

Small scale LNG map. Courtesy Gas LNG Europe (GLE)

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1. Small scale LNG distribution

Small scale LNG map. Courtesy Gas LNG Europe (GLE)

The transport of LNG by road is much dependent on the capability of
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the LNG terminal to fill truck tankers.
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Opportunities for SSLNG

2. SS LNG Distribution by road
In Spain, LNG has been transported by road since the early 1970s. In Japan
the first steps where made also in the 1970s.
In China, the transport of LNG by road is very well developed, and some
important amount of LNG is transported; for example, a virtual pipeline of
approximately 1000 km from Western China to the East Coast is created over
the road on trucks.
LNG is transported by road mainly to industrial customers that are not
served on a gas grid.
Some other cases exit for small gas networks, truck to ship for bunkering
and peak shaving facilities.
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Opportunities for SSLNG

2. SS LNG Distribution by road

LNG trailer with 56 m3 capacity, courtesy of dourogs

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Opportunities for SSLNG

2. SS LNG Distribution by road
The availability of truck loading facilities on the LNG terminal is a crucial
constraint on the viability of LNG road transport.
Truck loading facilities are present in some European LNG import terminals,
but many others are planning the construction.
Road tankers, as any other LNG tank, produce boil-of-gas (BOG) which is the
return of the natural gas back to its original form of a gaseous state that
introduces greater pressure and stability risk to the tank.
BOG must have to be considered and engineered when dimensioning the
tank for the truck. The maximum pressure should be adjusted to the
distance covered to allow for BOG.
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Opportunities for SSLNG

3. SS LNG satellite plants
Satellite plant technology is derived from air gases industry. Considering the
necessary adaptions, satellite plants are very similar to the gasification
plants on liquid air gases used for several decades on industry, hospitals and
others.
There are mainly two types of satellite stations: for industry and local grids,
and for stand-up peak shaving. The two different engineering projects
highlight the different need for regular gasification or peak gasification
processes.

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Opportunities for SSLNG

3. SS LNG satellite plants

Satellite plant with regasification unit for local gas grid, courtesy of sonorgs
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Opportunities for SSLNG

4. SS LNG Distribution Chain

SS LNG Distribution Chain, courtesy of Indox

The distribution chain is very simple:
Truck tanker is filled with LNG on the terminal truck loading
facility. Cryogenic pump is normally used.
Truck drives from the terminal to the satellite plant. Pressures
from 1 to 4 bar are commonly used.
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Opportunities for SSLNG

4. SS LNG Distribution Chain

SS LNG Distribution Chain, courtesy of Indox

The distribution chain is very simple:
LNG in the truck is pumped to the satellite plant cryogenic tank.
Differences on pressure or unloading pump are both used.
Pressures on the satellite plant from 4 to 20 bar are common.
Besides one or several LNG tanks satellite plant have several other
equipment to produce and regulate the gas delivered.
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Opportunities for SSLNG

4. SS LNG Distribution Chain
Satellite cryogenic tank size is very variable; there are tanks from 2 to
2000 LNG m3. One or more tanks can be used. Attached to the tank
there is a small vaporizer that is used to build the pressure inside the
tank, if it is necessary. Pneumatic and electric valves are normally
used. Vaporizers on air to air, or air to water are used to gasify the
LNG.
ISO containers can also be moved by road. This option must be
validated where a special need is present. Due to its own weight ISO
containers have limitations on road transport.

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Opportunities for SSLNG

4. SS LNG Distribution Chain
The cost of LNG truck transport is mostly dependent on the tanker
used and distance covered. In most of the cases a 40-ton total weight
is reached with a 56 m3 LNG tanker. For a standard 56 m3 LNG tank,
the cost per km is presented in the graphic where the distance from
the terminal to the satellite is considered.

Road transport cost by distance covered

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Opportunities for SSLNG

4. SS LNG Distribution Chain
For example in Spain during 2012 there has been record-breaking
loading of trucks with a total of 45,293 tanks, 80 % were loaded on
ENAGAS terminals.

Volume of LNG loaded to trucks in Spain. Courtesy of Enagas.

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Opportunities for SSLNG

5. SS LNG retail
In Portugal dourogs is using the LNG retail for LPG substitution in
areas where gas grid is not present.
The project consists of several intermediate satellite plants that
receive LNG from Sines or Mugardos (Spain) LNG terminals, and
where small truck tankers are filled with LNG.

Intermediate satellite plant, courtesy of goldenergy

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Opportunities for SSLNG

5. SS LNG retail
Small tankers retail LNG to several micro satellite plants, ranging
from 2 to 30 m3 of LNG.

Small LNG truck tanker, courtesy of goldenergy

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Opportunities for SSLNG

5. SS LNG retail
To calculate the investment and operation cost one must consider
the truck tanker that comes from the terminal, the intermediary
satellite plant, the small truck tanker and the small satellite on the
client.

Investment (CAPEX) and operation (OPEX) specific cost

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Opportunities for SSLNG

6. Conclusions
Considering the opportunity value of the energy, there are good
chances to obtain economic feasibility.
When transported by road,
LNG can reach almost any
place in the planet.
This availability can support a
more efficient fuel switching.
LNG can substitute fuels that
are
harmful
to
the
environment.

LNG micro satellite plant,

courtesy of goldenergy
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Opportunities for LNGVehicles

Nuno Afonso Moreira, CEO
nmoreira@dourogas.pt

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