COURSE ON LNG

BUSINESS
Session-12
Emerging Technologies in Gas
Market-Part-2
 What is small scale LNG

• Large>1MMTPA
• Medium 0.2-1 MMTPA
• Small 0.05-0.2 MMTPA
LNG scale of
operation • Micro <0.05MMTPA

• Large and medium scale projects need large gas reserves base to support project
• Limited number of reserves in world of that size but a very large number of small
reserves exist
Why small and
micro scale? • Large projects are capital intensive, long gestation projects with limited flexibility

• Monetise stranded gas, associated gas (otherwise flared), CBM types of gases
• To cater to small customers located away from gas pipelines
• To develop new CGD networks in areas located far from pipelines
Applications • To develop applications like LCNG, LNG for automobile fuel, LNG bunkering etc.
 Small LNG value chain

Plants as small as 2000TPA of LNG are known to have been developed

Estimates of flared gas in different
regions of world
Worldwide gas reserves distribution by
size of reserve
Micro LNG - Footprint
Summary of mini LNG technology
suppliers
 MINI LNG Technology
Gas expansion cycle based
 MINI LNG Technology
Nitrogen expansion cycle based
 MINI LNG Technology
Mixed refrigerant cycle based
Small LNG technology of Wartsila
 Small Scale LNG - Advantages

 Flexibility ( skid mounted)

 Logistically easy (as compared to CNG)

 Economical ( as compared to CNG )

 Low gestation period ( mostly shop fabricated)

Mini LNG plant capital cost estimates
Mini LNG plant power consumption
 Small Scale LNG - Economics
 The liquefaction plants based on proposed technology may cost in
the range of US$2-10 million depending upon size and gas
composition

 With multiple units requirements it may be possible to bring down

costs substantially

 The liquefaction cost may be about US$2 –US$3 per MMBTU

 LNG Storage, transport and re gasification cost will be about USD

1.5 – USD 2 per MMBTU

 Remote gas at well head is generally priced in the range of US$0.5-

1 per MMBTU
 Small Scale LNG – Case study in
NE region of India
Small gas Small scale LNG
fields Plants
Send to Nearby
Crude oil pipeline
2500 gpd
LNG Transportation NGL,15000
TPA

Transport via rail/

Road to customer
10000 gpd Large LNG Storage LPG,20000
TPA
Tank at receiving
Send to adjacent
location
C2/C3,10000 Petrochem complex
TPA

Replacement of diesel in
Lean Gas Rigs, vehicles & DG sets
85000 TPA
5000 gpd LNG Transportation
Establish LNG/LCNG
Dispensation stations
Store it in LNG storage
Supply gas through Tank and
pipeline Use for city gas distribution
 LNG/LCNG as vehicular fuel
 Natural gas is fast becoming fuel of choice due to its lowest carbon
footprint and very low SOX , NOX emission

 Natural gas as vehicular fuel is a concept that is getting accepted

very fast

 Natural gas can be used as vehicular fuel in 3 forms

 Compressed natural gas (CNG)

 Liquefied compressed natural gas (LCNG)
 Liquefied natural gas (LNG)
 LNG as vehicular fuel
 Use of LNG as vehicular fuel is relatively new concept and getting
fast acceptance

 CNG is more popular alternative for vehicular fuel due to early

adoption of its technology

 However LNG has 2.5 times more energy density than CNG and
hence very well suited for long haul fleets and fleets dedicated to a
particular corridor

 LNG tanks for vehicle and associated system has been well
developed now and is commercially operated in many parts of US
and Europe and LNG as vehicular fuel is very well suited for heavy
vehicles
 Advantages of LNG over CNG
 Range of the vehicle in single fill for CNG vehicles is 200-250
kilometers while for vehicles run on LNG the range is 600-800
kilometers

 Dead weight of CNG tank on bus or truck chassis is almost 1 ton

while that of LNG tank is only 200 Kg. This reduction in weight
increase the fuel efficiency of the vehicle

 No pipeline infrastructure is required to be created for establishing

LNG filling station. This also means that the lead time for
establishing filling station is less

 As the range for LNG vehicle is higher than CNG, less number of
LNG filling stations are required in given area.
LNG Filling Station - Schematic
LNG Fuel Tank
 LCNG as vehicular fuel
 Liquid to Compressed Natural Gas (LCNG) is a modified way to
produce CNG which has advantages over CNG

 Typically CNG is produced by compressing the natural gas from

pipeline using compressor to 250 bars.

 However in case of LCNG, LNG is moved by road tankers from

liquefaction plant to the filling station. This LNG is then stored in
storage tank and then pumped to high pressure using cryogenic
high pressure LNG pumps. This high pressure LNG is then
vaporized through ambient air vaporizers and discharged at high
pressures through dispenser
LCNG Filling Station Working
 LCNG Advantages

 Lower distribution cost

 Lower storage cost

 Lower energy consumption at filling station ( Pump Vs. compressor)

 Lower cost for preventive maintenance

 LNG and LCNG both can be distributed in the same premises by

adding one LNG dispenser
LNG Hub and Spoke model
LNG Hub and Spoke model
LNG Hub and Spoke model
LNG Hub and Spoke model
LNG Hub and Spoke model
 LNG Hub and Spoke model

SINGAPORE HAS DEVELOPED TOLLING LNG TERMINAL

LNG Hub and Spoke model