Bv 2009 about lng liquefied natural gas is natural gas, primarily composed of methane, which has been converted to liquid form for. As the lng supply chain increases in scope, supply chain resilience will likely remain an important. Project financing of the lng supply chain presentation to the japan institute for overseas investment june 1, 2009 david vance, partner christian petersen, partner tomo aiko, senior associate. Supply chain optimization for the liquefied natural gas business. Lng is greenest of fossil fuels and becoming the cheapest, our small scale marine supply chain can bridge the gap between bulk lng.
Evaporation losses in the lng supply chain are one of the key factors for lng safety, technical and economic. Upstream sector oexploration omining downstream sector oprocessing production oliquefaction otransportation odistribution of natural gas. Together with inpex and its joint venture participants in a longterm. Cng for commercialization of small volumes of associated gas. Addressing critical oil and gas challenges keeping employees, assets, and environment safe in a highrisk environment high cost of offshore staffing finding efficiencies that improve business performance and optimise production. It is important to show the basic structure of the lng infrastructure, including recent sslng structures. Those without prior knowledge of the lng business may. Maritime transportation is a vital part of the lng. Lcas have been developed in recent years covering the general lng value chain. May 03, 2016 an animation describing the full lng value chain of production, liquefaction, transportation, and regasification.
Thereafter it is send into the pipeline system, for distribution to endusers. In short, this paper demonstrates the extent to which an lng supply chain has developed in the north sea and baltic sea regions, where environmental regulations prompted demand for lng as a marine shipping fuel. Global gas and lng market outlook to 2035 mckinsey. The price structure of gas compared to bunker fuels indicates that competitive gas prices can be achieved at high crude oil prices 70 usdbarrel, provided that the lng logistic chain. We forecast gas demand and then use our infrastructure and contract models to forecast supply. Lng supply chain leonidas chrysinas university of strathclyde. Yokogawas commitment to innovation in lng projects worldwide dates back to the 1970s.
The lng supply chain will also be expanded into new markets including emerging countries with rapidly increasing electric power demand because of the growing supply and falling price as new natural gas resources will be tapped more. D56 lng supply chain feasibility study overall report. A recentlycompleted study by pace global a siemens company under sponsorship from the center for lng clng provides valuable insights in comparing various configurations of the lng value chain to coal when the two primary energy forms compete in supplying the power. Fsru floating storage and regasification units, lng liquefied petroleum gas, sslng smallscale liquefied petroleum gas. Unique, dynamic insight into production status and maritime freight movements. In this study, an lng supply chain model is analyzed and optimization of.
An animation describing the full lng value chain of production, liquefaction, transportation, and regasification. The lng supply chain consists of extraction and production of natural gas, liquefaction, marine transportation of lng, and lng storage, regasi. Evaporation losses in the lng supply chain are one of the key factors for lng. Lng supply expands and exports surge, stay in the know about lng. However, fundamental developments have largely delinked oil and gas prices, and as a result, oillinked prices send misleading signals about supply and demand, and create frictions between buyers and sellers because prices do not accurately reflect values. Realtime monitoring of the lng supply chain, from commissioning to operation. Supply with lng fuel for ships is quite difficult and time consuming lng fuel supply. Lng as a ship fuel in the baltic sea region study for lng. Evaporation losses in the lng supply chain are one of the key. Keeping pace with change in the energy and natural resources sector, kpmg global energy institute, 2015.
Improve efficiency with industryleading supply chain. For example, the typical set up in various regions is as follows. As the lng supply chain increases in scope, supply chain. The lng supply chain consists of exploration, extraction, liquefaction, transportation, storage and regasification. Current, planned, and developing lng infrastructure. Thus, traditional lng pricing mechanisms have become. Improve efficiency with industryleading supply chain automation and business. In a smallscale supply chain, lng is shipped from larger supply terminals to customers through satellite terminals with a combination of sea and landbased transport. Petroleum and gas supply chain natural gas lpg terminal processing facility biogas conventional gasoil coal seam gas natural gas output lng plant sewerage works re. Cng for commercialization of small volumes of associated gas prepared by tractebel engineering s. Liquefied natural gas and regasification harvard energy journal. Understanding natural gas and lng options department of energy. Managing risks in lng engineering, procurement and. Improve efficiency with industryleading supply chain automation and business intelligence tools.
Economics of the lng value chain and corporate strategies. Project financing of the lng supply chainfinal426942 1. Oversight and proactive contracting risk management are key in lng projects based on. The core lngas hive project, coordinated by enagas, aims at developing. Developed by funded by contributing partners ghana ministry of.
This chapter analyses the spatial relationship between demand points and lng supply chain infrastructures like lng terminals and transport modes. Lng supply chain analysis and optimisation of turkeys natural gas. In january, 1959, a converted ship, the aptly named methane pioneer, set sail from louisiana to britain with the first seaborne lng cargo, thereby proving the commercial feasibility. The price structure of gas compared to bunker fuels indicates that competitive gas prices can be achieved at high crude oil prices 70 usdbarrel, provided that the lng logistic chain is well utilized. Cng has been used onshore for gas supply over short distances and in. Amid this forest, the comparatively diminutive tree of smallscale lng sslng doesnt get much attention. Sep 16, 2015 the multibillion dollar ichthys lng project is ranked one of the most significant oil and gas projects in the world.
As such, the demand for liquefied natural gas will likely experience growth in the international and domestic market. Global electricity and transportation companies are now looking to replace oil with cleaner burning natural gas. Lng supply chain and infrastructure great seminar lng 17 thomas quine president northstar industries, llc 1. It is important to show the basic structure of the lng. Worlds largest lng fuel supply chain for worlds largest box ships martial claudepierre regional general manager sustainable shipping bureau veritas north asia. The lng process chain from extraction, processing and transport, to consumption source. For more information, additional references and weblinks are provided at the end of this paper. Regular papers problem of boil off in lng supply chain. The extraction of natural gas from the earths surface is the first step in the supply chain. Describing gas industry we can distinguish two main areas. Songhurst february 2014 lng plant cost escalation oxford institute for energy studies 4 future of procurement in asia pacific. Lng demand and supply logistics chain mediterranean. In short, this paper demonstrates the extent to which an lng supply chain has developed in the north sea and baltic sea regions, where environmental regulations prompted demand for lng as a marine. Begcee flower, lng supply outlook 2016 to 2030, page 5 petroleum negotiators, aipn, provides a master spa model contract.
Project financing of the lng supply chain presentation to the japan institute for overseas investment june 1, 2009 david vance, partner christian petersen, partner. The trend is set to continue, with new supply from new lng projects globally. Supply and demand balance global shipping considerations lng and domestic gas value chains introduction lng value chain domestic gas value chain domestic market introduction. Unlocking the supply chain for lng project success assets.
Sustainable liquefied natural gas supply chain management. Lng supply chains and the development of lng as a shipping. Oversight and proactive contracting risk management are key in lng projects based on our experience in helping derisk project execution and in the turnaround of projects that have. Lng value chain value propositions golng main page. The course is designed for new entrants to the lng business or for those with some knowledge of the business wishing to broaden their understanding of the complete value chain. Lng market growth is driving value creation opportunities. Supply with lng fuel for ships is quite difficult and time consuming lng fuel supply in the port of grangemouth requires a route at. Sustainable liquefied natural gas supply chain management mdpi.
In this paper we study a small to mediumscale lng supply chain where demands are smaller and. Portfolio growth is generating a number of interesting commercial questions, with some examples in the table below. Optimizing the supply chain, both during construction and operations, is key to reducing costs and speeding time to market for new lng export projects. It is a challenging task to design such supply networks. We designed and built the worlds first mobile filling platform mfp in singapore to receive lng and breakbulk on liquidtoliquid basis. Weve built redundancy and resiliency into our supply chain in order to prevent incidents and ensure that if events occur, they produce the least possible impact. This course provides a comprehensive overview of the lng value chain from upstream supply, liquefaction, shipping and regasification of lng into downstream markets. Supply chain optimization for the liquefied natural gas. In fact, if all currently approved lng export projects were operational, the united states would already rank number one in the world for global export capacity.
Offshore deployment of lng supply chain floating lng. Detailed market research and continuous tracking of market developmentsas well as deep, ontheground expertise across the globeinforms our outlook on global gas and liquefied natural gas lng. Lng supply chain describing gas industry we can distinguish two main areas. These estimates are based on the unit investment costs of japanese companies in the case studies. Uk shipment of lng demonstrated that large quantities of lng could be transported safely across the ocean, opening the door for what would become the global lng industry. Introduction to us lng supply chain and infrastructure gti energy. Optimization of lng and natural gas supply chains two models. The term sslng refers to the direct use of liquefied natural gas in its liquid form, as opposed to the traditional model of regasification and. Keeping pace with change in the energy and natural resources sector, kpmg global energy institute, 2015 jonathan smith brings over 25 years of experience in systems and process. This lng supply chain is often a largescale one with vessels of average capacity of about 145,000 m 3.
Tactical planning addresses the vehicle routing problem vrp, see 5 while strategic planning deals with. Investment in lng supply chain infrastructure estimation 6. The first attempts to bridge the gap between supply chain management, portfolio optimization and routing in the liquefied natural gas supply chain were made by christiansen 2009 and gronhaug et. In the western hemisphere north and south america prices are based on the socalled henry hub system.
With its extensive experience and comprehensive portfolio of solutions, yokogawa has what it takes to achieve operational excellence in the lng supply chain. Lng is greenest of fossil fuels and becoming the cheapest, our small scale marine supply chain can bridge the gap between bulk lng and retail customers not served so far in developing asian countries. The lng logistics chain business white paper wartsila. Lng through small scale supply chain and virtual pipeline. We forecast gas demand and then use our infrastructure and contract models to forecast supplyanddemand balances, corresponding gas flows, and. This paper examines the problem of evaporation of liquefied natural gas lng occurring at different places in the lng supply chain. Global demand for liquefied natural gas lng grew by 12.
435 131 1078 1263 1328 1081 778 1219 503 1402 1391 1435 1041 198 594 585 298 75 371 813 1322 1501 1435 752 1379 260 1559 384 477 1297 344 1321 1198 1495 276 291