LNG – Liquefied Natural Gas

LNG is a bridge between fossil fuels and renewable energy.

”By generating 30% less carbon dioxide (CO2) than fuel oil and 45% less than coal, LNG is regarded as the ”cleanest” fossil fuel. With natural gas use expected to account for 25% of the world energy portfolio by 2035, LNG is seen as an ideal energy alternative to help reduce greenhouse gas emissions and to bridge the gap between more harmful fossil-based fuels and future sustainable technologies such as hydrogen.”

LNG can service as a backbone of stable energy production while markets build their investment in renewable.

Global LNG Trade

Global LNG trade increased to 354 MT in 2019, an increase of 13% versus 2018. This is the sixth year of consecutive growth in global LNG trade.

Bangladesh, India and Pakistan imported 36 million MT in 2019, an increase of 19% over the previous year, pointing to emerging growth countries in Asia.

The long-term outlook is promising for the LNG industry. According to industry’s forecasts, the demand is expected to double to 700 million MT by 2040 which is bringing confidence in the role of natural gas in shaping a lower-carbon energy system across the world and as the best transition towards renewable energy.

Also and due to the global coronavirus crisis in 2020, some large LNG projects are expected to be delayed which could bring a certain balance between the offer and demand. We believe that the demand for LNG supply solutions using LNG containers should grow in the coming decade due to more end users and power generation companies looking for flexible solutions and that wish to switch to a cleaner fuel (compared to Diesel as an example).

LNG Value Chain

Exploration and Production of natural gas(Extraction of natural gas).
Treatment (The process includes removing liquids, solids, vapours and impurities).
Liquefaction of natural gas into LNG (convert the natural gas into liquid form which reduces its volume for easy transportation purposes).
Shipping of LNG (After liquefaction, LNG is loaded onto specially designed ships or into ISO containers to keep the LNG in liquid state during the transportation to the final destination).
Receiving, Storage and Distribution (An LNG receiving terminal comprises LNG storage tanks and regasification facilities that convert LNG back to its ”gaseous” state for distribution to end-users).

LNG Tankers

Once the tanker reach the dedicated import terminal, the Liquefied Natural Gas is stored in large storage tanks and compressed and vaporized for injection into the gas transmission grid.

Most LNG import terminals also have truck loading facilities where the product can be loaded on specialized trailers and containers for the distribution to customers and end-users. LNG enables cost competitive long distance transport of natural gas and it can also be easily transported in ISO tank conatiners to any ports that accepts DG. The volumes that are distributed by containers represent a small fraction of the total LNG imports but the demand for LNG is growing fast.

LNG ISO Containers

The LNG that is distributed by ISO containers can be used in a wide range of applications (ex: industrial processes, power plants, road and marine transport, etc.)
and the transportation can be applied over long distances and through the traditional sea routes using container ships. Therefore, it enables a cost competitive fuel supply to end-users and it also brings some flexibility to importers, distributors and traders who don’t have access to LNG import terminals and/or financial capacity to buy a whole cargo.

LNG Virtual Pipeline

The LNG can be move easily from a small-scale LNG Plant or refilling station to the end user by using LNG ISO containers. Transportation mode by land (truck), sea (standard containers vessel) and rail. Click here to learn more about LNG-to-Power solutions.

Traditional Supply Chain

The standard LNG supply chain requires large LNG receiving terminals, onshore storage tanks and LNG carriers to move the product from a producing Country to the destination port/receiving terminal.