Small-scale LNG
SMALL-SCALE LNG TECHNOLOGY
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Small-scale liquefaction plants enable “stranded” consumers —those without geographic, logistical or financial access to natural gas pipelines— to avail themselves of the benefits of clean-burning, efficient and affordable natural gas, quickly, independently and without massive capital investments. Small-scale LNG represents a modern, decentralized, distributed and affordable energy solution for developing markets.
Our competitive advantage lies in the fact that our direct sources of natural gas coupled with our low-overhead business model ensure a low-cost, reliable and uninterrupted supply of high-quality LNG, thereby offering power generators, businesses, industries and municipalities the highest-efficiency fuel on the market, at a significant reduction in costs over diesel or compressed natural gas (CNG).
Innovations in small-scale LNG (ssLNG) are driving early adoption in transport markets, high-horsepower applications, off-grid industries, and remote power. The current global surplus and low price of natural gas are providing opportunities for end users to switch from diesel and heavy fuel oil to natural gas. Prospects for SSLNG development around the world are promising as entities seek to diversify their energy supply, switch to a cheaper and greener fuel, increase customer portfolios, and monetize small-gas resources (source: Berkeley Research Group).
Small-scale LNG: North America. The small-scale LNG industry in the US was initially developed in the 1960s and 1970s, and generally consisted of peak shaving facilities for winter gas supply. Here, “small-scale” is defined as liquefaction plants with single-train capacities of less than 40 million standard cubic feet per day (MMscfd), or 485 thousand gallons per day (Mgpd) of LNG output.
Small-scale LNG: Rest of world. In several other countries, LNG plants are being developed to supply LNG to remote users and provide clean vehicle fuels. These facilities are growing rapidly in both number and capacity as LNG is adapted to new end uses. With a distributed LNG model, where LNG is produced and transported to a number of different users, gas can be provided to new customers in both industrial and residential locations. New customers can be added in a short time with a single LNG tank and a small vaporizer.
Modular project execution is already proven within the natural gas industry, as demonstrated by its role in facilitating the rapid development of shale gas reserves within the US. Nearly 100 prefabricated gas treatment and cryogenic NGL recovery plants have been supplied to support the economic recovery of NGL and new supplies of shale gas.
Within the “gas patch,” upstream and midstream plant owner-operators realized the economic value of a fast, flexible, and repeatable modular work process. A reduced schedule of up to six months was achieved for specific projects, allowing owner-operators to be first movers in areas such as the Eagle Ford and Marcellus basins. Financial returns and cashflows were enhanced through faster monetization of natural gas and NGL. Finally, modular gas plants have, and continue to provide, the flexibility to adjust for changing gas composition, thereby allowing companies to pre-order plants in anticipation of future projects.
A modular execution model fits well for the small-scale LNG fuels sector. The North American LNG fuel industry will demand high-quality, consistent, and cost-effective liquefiers that can be replicated across multiple locations and feed gas conditions. A pre-engineered, repeatable modular solution is, therefore, ideal for owner-operators that are evaluating an investment in multiple liquefaction plant locations or phased capacity investments at a single plant location.
Additionally, to offer flexibility, individual process modules can be added as needed to address different feed gas impurities and end-product requirements (source: Black & Veatch).
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