Why LNG?
LNG and the environment
Concerns over human health, marine environment and climate change have forced governments and international bodies to regulate air and marine emissions. Natural gas and LNG with its significantly lower levels of emitted pollutants, will secure the second place in the world energy mix by 2040 after oil (IEA, 2017).
Natural gas emits virtually no particulate matter and sulphides and it is significantly lower in NOx and CO2 emissions than oil.
Oil and Gas share in total air emission pollutants, 2005
Source: International Energy Agency (IEA), Outlook for Natural Gas. 2017
LNG opens up new markets
IEA (2017) expects developing countries led by China, Middle East, India and other countries in Asia to increase their demand in gas by 80% in the next decade. The majority of this demand is going to be met by LNG. Over 90% of the total global natural gas demand is expected to be in LNG by 2040.
Recent technological developments, such as floating storage and regasification units (FSRU), and modular floating liquefaction plants (FLNG), have secured higher demand for LNG in geographically challenging locations and significantly reduced costs of onshore infrastructure. Tightened emission regulations on road and at sea have triggered developments of dual-fuel marine engines and gas engines for trucks. Both trends have been instrumental in developing small scale LNG market.
Key natural gas additional demand centres, 2016-2020 (bcm)
Source: International Energy Agency, Outlook for Natural Gas. 2017
Small scale LNG
Small scale LNG is a term that is loosely used for a number of LNG applications and projects types.
You could find our interpretation of the main small scale LNG applications below.
The client is not connected to a natural gas grid and is currently using either heavy fuel oil, liquified petroleum gas or coal. The client demand is <320K m3 and it is likely to require a floating regasification solution.
LNG to power
Shipowners looking to comply with the latest International Maritime Organisation (IMO) regulations for reductions in SOx by 2020 are installing engines burning LNG. They require supplies of LNG either via a bunkering vessel or a truck loading or shore-to-ship facility.
LNG as marine bunker
Owners of medium and heavy duty trucks are upgrading their fleet with dual-fuel of gas dedicated trucks to address more stringent air quality regulations. Trucks have to be fuelled from the LNG filling station.
LNG for road transportation
Offgrid LNG
The client is not connected to the grid but requires LNG either for power or other industrial needs and in quantities which are smaller than a conventional LNG cargo
(< 140K m3).
LNG safety
The LNG industry safety track record is outstanding.
If you have any doubts please watch this video from Volvo to understand what happens if there is an LNG spill.
