Hydrocarbon Processing - April 2021 - GP-25

LNG TECHNOLOGY
production volume). Although low in
absolute numbers, an increasing number
of ships capable of burning LNG as fuel
are under construction and entering operations, led by the cruise ship industry,
European manufacturers and container
ships. There are nominally 90,000 total
ships in the global fleet, with 60,000 plying international routes. Ships consume
20 metric tpd-80 metric tpd of fuel oil;
for a very large crude carrier (VLCC) traveling from the Middle East to Japan, this
typically amounts to $2 MM-$2.5 MM
for the 25-d voyage.6 The global average
very-low-sulfur fuel oil (VLSFO) price
for early-November 2020 delivery was
$355/metric t, or $9.60/MMBtu. Even at
COVID 19-induced depressed fuel prices,
LNG is economically attractive.
Availability of LNG at ports to support
bunkering is growing, but still limited in a
classic " chicken-or-egg " scenario. A total
of 96 global ports claim to have access to
LNG, but only 12 presently have operational LNG bunkering ships, with another
27 of these ships on order.5 FIG. 1 shows
global ports with bunkering access.7
Regional shipping/port services.
LNG bunkering for regional shipping is
more straightforward to manage, as the
ships can return to the home port for refueling and not be dependent on the availability of infrastructure at other locations.
Potential users include passenger and car
ferries, offshore service vessels, regional
barge shipping and harbor/river tugs.
Port service vessels with tight quarters
below the waterline (i.e., tugboats) may
be challenged for fuel tank space in retrofit
designs. Economics strongly favor diesel
conversions based on the relative cost of
marine liquid fuels vs. LNG.
Long-haul trucking. LNG is a premium fuel for long-haul trucking. On a heat
basis, it is less than half the price of diesel
(see above) and enables reduced maintenance costs per numerous published reports. Trucks generally have the room to
accommodate the larger volumetric storage space requirement, while the weight of
the fuel itself is lower. Daily usage is high,
such that heat leak and boiloff management are not an issue.
The primary limiting issue for conversion is limited access to LNG, which is
not universally available, and the installation of more truck filling stations has been
stymied by the lack of converted trucks to
purchase the LNG. Steps are being taken

FIG. 1. Global ports with bunkering access.7

to improve this-for example, Louisiana
has established an Alternative Fuels Corridor program in support of such efforts.7
Commercial transportation. The
city of Houston, Texas experimented extensively with the use of LNG-powered
city buses in the early 1990s, but reverted
to diesel due to design flaws in the fueling system. Houston is now successfully
increasing its use of compressed natural
gas (CNG) in the city bus fleet. Any type
of regional commercial transportation
(metro buses, school buses, package delivery fleets, consumer beverage delivery
trucks, etc.) that return to a home base
daily are well suited for utilization of
LNG or CNG, as fuel can be made available at their home base and the vehicles
are large enough to adequately store the
needed volumes of fuel.
Personal vehicles. Smaller, personal
vehicles do not lend themselves to direct
use of LNG or CNG due to the limited
space available and the lower fuel volumetric energy. Globally, the personal vehicle fleet is moving in the direction of
electrification, rather than gasification.
Trains. Locomotive use of LNG is
presently very limited, with one application in the U.S. on the Florida East Coast
Railway. Locomotives are well-suited to
LNG use, with space available for longhaul storage and a near-continuous use
profile. Availability of the fuel at terminal
locations is the most significant challenge.
Off-grid power stations. These stations represent a prime potential area of

growth for LNG if the logistics associated
with fueling them reliably can be established. These stations range from microscale power plants (as small as 100 kW to
feed a remote village or a large ranching
operation) through small-scale (5 MW)
up to moderately large-scale facilities
(> 250 MW). These types of facilities tend
to be sited in relatively isolated locations,
on islands (the Caribbean, Asia) and upriver, and presently operate on diesel oil
delivered by truck or barge. The favorable
economics outlined in shipping also apply
here, provided that cost-effective fuel supply transportation can be established.
Off-grid manufacturing/farming.
Similar to off-grid power stations, and
sometimes integrated with them, large
industrial and agricultural energy consumers generally use diesel oil, with some
global regions (particularly China) using
coal, and others (U.S. farms) making extensive use of propane or LPG. Most diesel and coal facilities represent potential
conversion to LNG, but they tend to be
small consumers (challenging logistics)
and intermittent consumers (challenging
storage of LNG). Supplying LNG into
common, local/regional, short-pipeline
distribution systems may be part of a
workable solution.
Home heating/cooking, others.
This market is not viewed as prime for
expanding LNG usage. Small storage systems have been developed and distribution models have been tested, but unless
a regional/neighborhood piping system
Gas Processing & LNG | MARCH/APRIL 2021

Hydrocarbon Processing - April 2021

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