Offshore LNG Technology: A Comparative Study of Conventional and Futuristic Salt-Cavern-Based LNG Receiving Terminals

Abstract

Summary Tight oil supplies, escalating oil prices, and towering energy demands have led to the revival of natural gas. It is now deemed to be the potential fuel of the near future. The trend now is toward supplying every cubic foot of inland and offshore natural gas to energy-hungry consumers. Liquefied natural gas (LNG) is recognized as the best form of gas transfer from remote inland and offshore fields to consumers around the world. The natural gas is liquefied and shipped to distant receiving terminals. The main technical features of a conventional terminal facility include LNG carrier mooring systems, unloading facilities, cryogenic LNG storage tanks, LNG regasification systems, and gas send-out systems. The United States has five such conventional terminals and is the world's largest gas market, with gas demands expected to double by 2020. This demand is leading to the expansion and refurbishment of these conventional LNG receiving terminals, with the construction of several more in various phases of planning and development. In 2005, the US Department of Energy (DOE), along with 30 energy industry players, successfully completed a research study on the concept of an offshore facility to moor LNG carriers and unload and store LNG. This concept includes storing gas in salt caverns. This technology is claimed to be highly cost-effective and process-efficient, with better delivery capacity and security than other options. This idea is being implemented through the construction of such a modern LNG receiving terminal in offshore Louisiana. Apart from the United States, LNG also offers great promise to such countries as Brazil, China, the United Kingdom, Mexico, Germany, and France. These countries are also contemplating LNG facilities development and upgrading. This paper aims to present a qualitative comparison between conventional and futuristic salt-cavern-based LNG receiving terminals. The comparison is based on the use of technology for these terminals. This approach will be ultimately useful in understanding the technology implementation required for the development and modernization of LNG receiving facilities in such countries.