Economic evaluation of pressurized LNG supply chain

Abstract

This study suggested the Pressurized Liquefied Natural Gas (PLNG) supply chain that consisted of Floating Liquefied Natural Gas Unit (FLNG) and LNG Shuttle and Regasification Vessel (SRV), conducted high-level conceptual design, and assessed the life cycle cost (LCC) the supply chain. Since PLNG was produced, stored, and transported at higher temperature and pressure than conventional LNG, the PLNG supply chain reduced the production (liquefaction) and regasification cost while increasing shipping cost mainly due to heavy containment systems to carry the PLNG. The liquefaction energy to produce 10 bar PLNG was just 72 % that to produce the conventional LNG. In order to reduce the PLNG shipping cost by improving the volume efficiency of the pressure containment system, a novel concept of the prismatic pressure vessel was employed as the pressure cargo tanks. The assessment of economic feasibility considered the normalized LCC with different product pressure and shipping distance. The assessment showed that PLNG had economic feasibility when the PLNG pressure was 5 bar at short shipping distance. The cost of the pressure containment system proved to be the critical cost component. A sensitivity study demonstrate that the decrease in the material price for the containment system significantly increased the breakeven shipping distance.