LNG is becoming more and more competitive against piped natural gas. Conventionally, transporting petroleum products and natural gas through pipelines is considered the most efficient. This does not hold with the introduction of SSLNG (Small Scale LNG) technologies that enable natural gas distribution in geographically scattered areas with small energy needs. A study [1] carried out to assess the economic efficiency of four energy generation options using SSLNG – various combinations of Heat and Electricity generation in the range of 0.3 – 3 MW. The study results indicated that the average cost increase for electricity (end-use application) is 1.23% per km and 2.51% per km for heat with SSLNG transportation via rail or road compared to piped gas.
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Gas pipelines are long-term assets with inherent inflexibility for direction (away from existing asset location) of gas delivery destination or gas supply source. Gas pipelines often stretch in lengths of hundreds of kilometres, and their maintenance and protection are not easy – not to mention land-related issues that hinder pipeline projects in the development stage and sometimes continue during the asset’s operational life. When gas pipelines are laid across international borders, there are additional international coordination, geopolitics and operational issues linked with multiple jurisdictions and regulatory regimes.
According to GIIGNL Annual Report , LNG traded quantity in increased by 0.4% over quantity. Around 356 million tons of LNG were traded in despite reducing overall global energy consumption due to the Covid-19 pandemic and resultant lockdowns. The report describes the reasons behind LNG consumption growth, in an otherwise depressed energy market, as increased investments in LNG regasification capacities and deployment of new RLNG (Regasified LNG or Natural Gas) usage technologies.
SSLNG technological chain provides solutions to problems related to gas pipeline flexibility with improved payback periods and shorter construction times than large-scale LNG (LSLNG) technological chains. Additionally, SSLNG can conveniently adapt to and become an effective part of a large LNG technological chain. This can be achieved through contractual LNG supply arrangements with liquefaction plants, LNG storage operators or provisioning of SSLNG transport and regasification services to remote areas for gas utility operators. In another study, [2] conducted in , intended to factor in directional flexibility of SSLNG in cost of gas transportation, provided a fair comparison of costs involved in transporting small LNG quantities by road in various directions as against pipeline transportation. The referred study concluded that SSLNG production and transportation costs could be significantly lower than gas transportation through pipelines where delivery distance is more than 930 km (or more), and delivery directions are five or more.
First and foremost, consideration of energy requirements relates to isolated small population concentrations in areas like the island of Tristan Da Cunha in the South Atlantic (around 2,000 km from the closest neighbour) or Siwa Oasis in the middle of Saharan Desert Egypt. These remote areas are not the only isolated places in the world – developed nations like the US, Australia, Canada, and Sweden also provide many examples of remote settlements. According to a World Bank report [3], around 44% of the world population lives in remote and rural areas away from utility grid supplies. Due to the intermittent nature of renewable energy supplies, such isolated populations mostly rely on wood, briquettes, coal, LPG and the like for heating/cooking. Diesel is the most viable option to run diesel-powered generators for continued electricity supply and as fuel for transport. Storage arrangements and replenishing fuel supplies are demanding tasks to be accomplished to ensure continued energy availability. The provision of clean drinking water is another challenge faced by residents of remote areas.
Other requirements include commercial and industrial applications that exist at remote locations due to unique geographical, social or economic reasons. Examples are film making industry working in remote locations or tourism industry.
We may safely describe energy requirements of remote areas to be a combination of the following:
This article focuses on providing energy (gas and electricity) related utilities (including the provision of tap water and drinking water) for sustaining life and business at remote locations – away from the energy grid. This includes SSLNG stand-alone systems meeting the community requirements and combinations of renewable energy supplies, depending on location and type of available renewable energy sources, supplemented by energy supplies from SSLNG operations. It is to be stressed here that, to date, renewable energy sources have not demonstrated to provide an independently sustainable and dependable supply of energy round the clock or in all weather conditions.
Now that the energy requirements for remote areas have been identified, it is time to look for solutions offered by SSLNG supplies regasified at consumption sites through skid-mounted LNG regasification units. Before doing that, let’s identify the components and requirements for an SSLNG value chain.
SSLNG chain may start from an LNG production site, an FSU (Floating Storage Unit), an FSRU (Floating Storage and Regasification Unit) or a land LNG storage. In case the destination approach requires marine transportation, small LNGC (LNG Carriers) are used. Otherwise, LNG is loaded in ISO containers for road or rail transportation to the consumption site. Once the ISO container filled with LNG reaches the consumption site, regasified LNG (natural gas) is available for use similarly to gas delivered from the wellhead.
Designing of Skid-mounted LNG Regasification Systems is done for specific site requirements. Considerations are not limited to specifications related to natural gas supply flow rates, pressure and temperature requirements. Other important design parameters that affect the size and performance of skid-mounted LNG regasification units are:
Following technology options are available for heat exchange in skid-mounted LNG regasification units:
Ambient air vaporisers (AAVs) are considered most cost-competitive, especially in areas with warmer ambient temperatures. Despite these being larger compared to those using other heat exchange technologies, their operation is simple and inexpensive (maybe at the cost of derated performance under severe weather conditions). Arrangements can be made for burning part of regasified LNG (or using boil off-gas) for supplemental heating during winter months – colder weather conditions may significantly affect the working of the regasification unit and the heating source is recommended for smooth functioning. Due to direct LNG heating by ambient air, frost formation is a likely occurrence. Frost build-up reduces the heat transfer coefficient and coefficient of performance of AAV heat exchangers, necessitating large space requirements to prevent ambient air from recirculating.
A common occurrence at the site of AAVs is the generation of fog. Fog gets generated under certain conditions related to temperature and ambient air dewpoint value. The fog bank that is generated can be large, which may cause sighting issues. Fogbank is otherwise benign.
In a recent study[1] carried out at Queensland University of Technology in , it was shown that LNG regasification technologies are now available to utilise cold energy stored in LNG. Cold energy is the physical (potential) energy stored in LNG during the liquefaction process and is estimated at around 830 kJ per kg of LNG. This cold energy is available for air chilling applications or other low-temperature fractionation (liquid nitrogen, liquid oxygen, etc. production), cold storage, cryogenic crushing and seawater desalination as per site requirements and utilisation options.
As discussed in the study referred earlier in this article, much like the competitive advantage of SSLNG delivery for multi-directional small consumption centres over pipeline gas delivery, skid-mounted regasification provides economical service for small gas supply requirements in the range of 100 – MSCFD gas (1 MSCFD = One Thousand Standard Cubic Foot Per Day). SSLNG is increasingly being identified as the best possible alternative solution (where the supply of piped natural gas is either not possible or uneconomical) and can provide much-needed energy at remote locations in a sustainable manner.
Focus on SSLNG has been very recent but growing rapidly. It is expected that developments of technologies to transport LNG at point of consumption conveniently, regasify onsite, use as a primary fuel or supplement renewable energy sources already existing at the site, all taken together point to a promising future for this energy supply chain.
SSLNG is more feasible and attractive when connected with skid-mounted regasification systems that also incorporate the use of “cold energy” stored in LNG as physical property. SSLNG, as part of an SSLNG connected supply system, requires less capital than large-scale LNG facilities. Thus, an efficient and commercially successful gas supply model for remote areas can be developed having the following essential components in the supply chain:
Important safety note:
In the end, it is essential to highlight the challenges related to the creation and maintenance of high safety standards associated with the SSLNG supply chain requiring low-temperature-rated (cryogenic) materials for storage and transportation. Liquid LNG is itself at a temperature of minus 162-degree Celsius, and its exposure could be fatal. Due to the implementation of such safety standards, the average shipping cost per ton of LNG is high for SSLNG, compared to large-scale LNG transportation. Operators of the SSLNG supply chain should never compromise the implementation of OSHA standards and recommendations of the latest GIIGNL Handbook to ensure the safety of personnel and equipment.
With emissions regulations getting ever stricter, many ship owners are turning to alternative fuels to power their vessels. Liquified natural gas (LNG) is proving a popular choice – and for good reason. Want to know more about LNG as fuel? Get an expert overview in 17 important questions.
Your choice of fuel affects both your profitability and your vessel’s environmental compliance. Liquefied natural gas (LNG) is a safe and cost-effective fuel that reduces greenhouse gas emissions and other harmful pollutants. LNG is playing a key role as a transition fuel and is widely seen as the first step towards decarbonising the maritime industry.
Switching to LNG as fuel for ship propulsion requires investment but can save you fuel costs, increase your profitability and reduce compliance risks. The expert answers to these 17 questions will tell you what you need to know about LNG as an alternative fuel for shipping.
LNG is natural gas that has been cooled to -162°C (-260°F), turning it into a clear, odourless liquid that is easy to ship and store. LNG is typically 85–95% methane, which contains less carbon than other forms of fossil fuels. It is a compact, efficient form of energy that is ideal for ship propulsion.
LNG is primarily used as a clean-burning energy source. It is used for electricity generation, heating, cooking, and as a transportation fuel. LNG is also used as a raw material for products like fertilisers and plastics.
In the shipping industry, LNG as fuel is used for ship propulsion, auxiliary power generation and other onboard energy needs. LNG as an alternative fuel for shipping has gained wide popularity due to its clean-burning properties and potential to help meet stricter emissions regulations.
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LNG as fuel for ships is produced from natural gas extracted from underground reserves, including both onshore and offshore gas fields.
BioLNG is LNG produced from biogas, which is generated from organic waste like food scraps, agricultural waste, manure and sewage sludge. BioLNG is considered a renewable fuel and can further reduce the carbon footprint of ships using LNG fuel systems.
LNG is primarily methane (typically 85–95%), but it also contains small amounts of ethane, propane and other hydrocarbons. LNG can also contain trace amounts of nitrogen and carbon dioxide. The exact composition of LNG may vary depending on the source of the natural gas and the liquefaction process used.
Compared to diesel fuel oil, LNG offers several advantages. LNG produces significantly lower emissions when burned, including:
LNG engines are also quieter.
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However, LNG has a lower energy density than diesel, so using LNG as an alternative fuel for shipping will require more fuel and therefore larger fuel tanks to achieve the same range.
The key advantages of LNG as fuel include reduced emissions and cost competitiveness. There is also an established and continuously growing global network of LNG bunkering facilities.
The disadvantages of using LNG as fuel for ships include the need for specialised equipment and training and the potential for methane slip.
Methane slip is when unburned methane, a potent greenhouse gas, escapes into the atmosphere. Modern dual-fuel engines will minimise this issue. Depending on engine type and load, you can reduce methane slip by up to 65% by upgrading your ship’s existing engines. Over the last 30 years, Wärtsilä has reduced the methane slip from its engines by around 90%.
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LNG is cleaner burning than traditional marine fuels, but it is still a fossil fuel. BioLNG, which is LNG produced from organic waste or biomass, can be considered a more sustainable alternative to fossil-based LNG as it has a lower carbon footprint. However, the production and combustion of bioLNG still emit some greenhouse gases. LNG can be seen as a bridging fuel in the transition to alternative fuels like methanol and ammonia, which aren’t yet widely available at scale.
LNG both is and isn’t a future fuel. It enables lower greenhouse gas emissions and reduces other harmful air pollutants compared to fuel oil, but it is still a fossil fuel. Sustainable future fuels are crucial for maritime decarbonisation, but the current cost, limited availability and insufficient infrastructure are challenging for operators. This gives LNG an important role to play in the shipping industry’s transition to a zero-carbon future.
As more ports develop LNG bunkering infrastructure and more ships are built with LNG fuel systems, the use of LNG as an alternative fuel for shipping is expected to increase. LNG is considered a stepping stone on the path to decarbonisation as the industry moves closer to using true future fuels such as methanol and ammonia.
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There are two main problems with LNG as fuel. Firstly, specialised equipment and training are needed to handle LNG safely. Secondly, LNG is predominantly methane and when burned as fuel unburned methane can escape into the atmosphere. This is known as methane slip and can offset LNG’s environmental benefits because methane is a potent greenhouse gas.
Modern dual-fuel engines can minimise methane slip – in fact, Wärtsilä has reduced methane slip from ship engines by around 90% over the last three decades through engine upgrades and ongoing research and development.
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There is also a third problem in some areas where the limited availability of LNG bunkering facilities can be an additional barrier to adoption. Despite these challenges, LNG offers a great opportunity for vessels to reduce emissions and is widely seen as a good first step towards decarbonisation.
LNG is often described as a transition fuel because it provides a good first step towards other alternative fuels. Sustainable fuels will be crucial to maritime decarbonisation, but the current cost, limited availability and insufficient infrastructure can make them a challenging choice for operators.
Converting to LNG is a concrete step towards decarbonisation that vessel owners can take today, helping them to reduce emissions and comply with increasingly strict regulations. Conversion also opens up the possibility to use bioLNG and, eventually, synthetic methane.
LNG produces about 20–30% less CO2 when burned compared to traditional marine fuels like heavy fuel oil (HFO). The exact reduction in CO2 emissions depends on things like engine type, operating conditions and the specific composition of the LNG fuel.
Burning LNG releases about 2.75 kg of CO2 per kg of fuel, while HFO emits around 3.15 kg. While there have been some concerns about methane slip, the latest LNG engine technologies and best practices in LNG handling and storage can help minimise this. Additionally, using bioLNG, which is produced from organic waste, can further reduce the carbon footprint of ships that use LNG as fuel.
While LNG is not a zero-carbon fuel, it does offer a significant reduction in CO2 emissions compared to traditional marine fuels. This gives LNG an important role to play in the shipping industry's decarbonisation efforts until fully renewable alternative fuels are more widely available.
The lifecycle emissions of LNG depend on factors like methane slip during production and transport, energy sources used for liquefaction and engine efficiency.
LNG produces 20–30% less CO2 when burned compared to heavy fuel oil, but methane slip can negatively offset this benefit. Engine manufacturers like Wärtsilä have been working hard to reduce methane slip. Since , the methane slip from Wärtsilä dual-fuel engines has been reduced by around 90%, taking it from 16 grams per kilowatt hour (kWh) to less than two grams today. Wärtsilä is working on reducing methane slip even further, to less than 1 gram per kWh. When running an engine at optimal load, methane slip can now be minimal.
While Wärtsilä is focusing on reducing tank-to-wake emissions through engine development, producers are working to minimise well-to-tank emissions. They are doing this by investing in carbon capture, using renewable energy to decarbonise energy-intensive processes like liquefaction, and closely monitoring pipelines for emissions.
The shipping industry contributes just 2% of global CO2 emissions but 12% of SOx emissions and 13% of NOx emissions. Switching to LNG as an alternative fuel for shipping reduces emissions across the board, cutting NOx emissions by 85–90%, reducing particulate emissions and completely eliminating SOx emissions.
According to a study by the International Council on Clean Transportation (ICCT), the lifecycle greenhouse gas emissions of LNG can be up to 15% lower than those of heavy fuel oil when considering a 100-year timeframe. Using bioLNG, which is produced from organic waste, can significantly reduce lifecycle emissions, as the CO2 released during combustion is offset by the CO2 absorbed by the organic matter when it is growing.
The global LNG market is expected to grow significantly in the coming years, driven by increasing demand for cleaner energy sources. According to a report by Shell, the global LNG trade is projected to rise by 21% by compared to levels. The expansion of LNG bunkering infrastructure, with 235 ports offering LNG refuelling by , is making LNG more accessible for the shipping industry.
Many modern LNG tankers use LNG as fuel for ship propulsion and auxiliary power generation. These vessels are often referred to as LNG-fuelled LNG carriers. As newer LNG tankers enter the market and older vessels are phased out, the proportion of LNG tankers using LNG as fuel is expected to increase. This is for three main reasons:
In there were more than 2,400 vessels equipped to operate on LNG globally, with another 1,000 LNG-fuelled vessels on order. These include over 20 cruise ships – many of which are using Wärtsilä LNG solutions – as well as tankers, containerships and RoRo ferries.
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LNG is an attractive alternative marine fuel because it has a lower environmental impact than HFO. It produces significantly less SOx, NOx and particulate matter emissions, helping ships meet stricter regulations. Using LNG as fuel can also reduce CO2 emissions by 20–30% compared to heavy fuel oil.
Additionally, LNG is cost-competitive and increasingly available worldwide, with a growing number of bunkering ports. As the shipping industry seeks to decarbonise, LNG is seen as a viable transitional fuel until alternative fuels like green methanol and carbon-free green ammonia become widely available.
LNG is already playing a significant role in the shipping industry’s transition to cleaner fuels. Its lower emissions and increasing availability make an LNG fuel system an attractive option for many shipowners.
As the industry works towards the IMO's goal of reducing greenhouse gas emissions by at least 50% by , LNG is seen as a transition fuel, paving the way for the adoption of alternative fuels like green methanol and carbon-free green ammonia. This makes investing in flexible dual-fuel engine technology the safest path forward, using LNG as a first step towards a carbon-free future.
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