Economic Small Scale LNG Plant Implementation with Cluster LNG Technology

Abstract

Abstract Recently gas has been more important role over coal and fuel oil in global energy sources, and the trend is expected to continue at least for 20 ~ 30 years. Southeast Asian countries are also coping with the trends and opportunities. Gas demands in the region have been increased and expected to increase rapidly with the relatively low price over fuel oil. However, the new emerging gas consumers are somewhat different from those of conventional large quantity LNG. The new consumers need more flexible and diverse supply of LNG for their specific needs. At the same time, there are many potential gas producers who endeavor to monetize their stranded gas fields by supplying LNG to nearby markets. New multi-producer and multi-consumer market requires different approaches in LNG production and distribution, and small scale LNG would be more appropriate for the new environment. Cluster LNG, which is based on increased pressure LNG liquefaction, has advantage in reducing liquefaction power, consequently overall CAPEX and OPEX. On the contrary, the produced LNG should be stored in increased pressure containment system. Nonetheless, it does not cause inconveniences to end-users as long as the integrated liquefaction, transportation, and regasification system is provided. At the same time, the increased pressure LNG system has superior carbon dioxide (CO2) emission index. The first Cluster LNG plant is being implemented in Indonesia. The plant would produce 5 mmscfd equivalent LNG and the produced LNG will be transported by LNG trucks to typically 300 ~ 500 Km away multiple industrial customers. The plant is expected to start operation around the end of 2014. High efficiency Cluster LNG will have overall competitiveness in CAPEX and OPEX compared with conventional LNG. Extensive applications of the innovative technology may bring paradigm changes in Southeast Asian LNG industry from long-term perspective.