LNG Industry Research Articles

Revolutionizing procurement processes in LNG operations: A synthesis of agile supply chain management using credit card facilities

Revolutionizing procurement processes in LNG operations is essential for ensuring efficient and cost-effective supply chain management. This paper presents a synthesis of agile supply chain management (SCM) principles using credit card facilities to streamline procurement processes in LNG operations. The integration of credit card facilities offers a flexible and efficient alternative to traditional procurement methods, enabling LNG companies to adapt quickly to changing market conditions and customer demands. The paper begins by discussing the challenges faced by LNG operations in traditional procurement processes, including lengthy approval processes, limited supplier options, and lack of transparency. It then introduces the concept of agile SCM and its principles, highlighting its potential to address these challenges and improve procurement efficiency. The synthesis of agile SCM principles with credit card facilities is explored in detail, focusing on how this approach can transform procurement processes in LNG operations. By utilizing credit card facilities, LNG companies can simplify the procurement process, reduce paperwork, and improve transaction speed. This approach also offers greater flexibility in supplier selection, allowing companies to quickly onboard new suppliers and respond to market changes. The paper also discusses the benefits of this approach, including cost savings, improved supplier relationships, and enhanced operational efficiency. Case studies and examples are provided to illustrate the application of agile SCM using credit card facilities in LNG operations. In conclusion, the synthesis of agile SCM principles with credit card facilities offers a transformative approach to procurement in LNG operations. By adopting this approach, LNG companies can enhance their competitive advantage, improve procurement efficiency, and drive overall operational excellence in the LNG industry. Keywords: Revolutionizing, Procurement Processes, LNG Operations, Credit Cards Facilities, Agile Supply Chain Management.

Prioritization of sustainable development plannings for supply chain finance using a novel Triangular neutrosophic-based TOPSIS-CPT-VIKOR model

The development of sustainable supply chain finance (SSCF) promotes the improvement of the long-term production and operational performance of enterprises. It is significant to explore both environmentally friendly and cost-effective solutions, especially in the presence of uncertain information. The triangular neutrosophic number (TrNN) can enable decision-makers (DMs) to express their preferences in high uncertainty. This paper aims to provide a systematic multiple-attribute group decision-making (MAGDM) framework to support DMs in prioritizing sustainable development plannings by combining the best-worst method (BWM), optimization model of maximizing deviation method, and uniformity entropy theory. Moreover, a TrNN-based extended TOPSIS method is developed to measure the differences in DMs’ importance. We incorporate the cumulative prospect theory (CPT) method to account for DMs’ psychological behaviors in risk scenarios. The CPT-VIKOR methodology is employed to rank alternatives, enhancing the precision of decision-making. Finally, the proposed approach is successfully applied to the LNG industry to illustrate its applicability.

Конъюнктура мирового рынка СПГ в условиях санкционного давления

The article reveals aspects of the situation on the global LNG market in the context of sanctions pressure on Russian LNG enterprises, and suggests ways for Russian LNG enterprises to adapt to these conditions. The conditions of sanctions pressure on Russian LNG enterprises are described and the impact of sanctions on the LNG industry is revealed. The conducted research is based on statistical data from Russian and foreign sources. Aspects of the global LNG market environment include: an increase in the scale of LNG production in the world, the use of innovative gas liquefaction technologies, the development of a system for organizing and managing the transportation of liquefied gas, an increase in the number of states purchasing LNG for their needs, changes in the volume of LNG production and consumption in the world. The analysis presented in the article of the prospects and directions of development of this market in the future, as well as the main economic and technical factors influencing its functioning, and its conditions over the past five years have shown that this market is actively developing. The authors come to the conclusion: Russian LNG exporting enterprises have managed to adapt to the current competitive market conditions of global LNG trade, diversify their capacities and transport logistics, and have also significantly expanded the possibilities of transporting LNG along the Northern Sea Route.

A review of sustainable project management practices in modern LNG industry initiatives

This paper presents a comprehensive review of sustainable project management practices within the modern LNG industry, aiming to analyze the strategies, challenges, and opportunities associated with sustainable development in LNG initiatives. The literature review encompasses an examination of sustainable project management principles, emphasizing the importance of environmental stewardship, social responsibility, and economic viability in LNG projects. Case studies from various LNG initiatives worldwide are analyzed to identify best practices and frameworks for integrating sustainability into project management methodologies. These studies highlight innovative approaches such as carbon footprint reduction, community engagement programs, and economic diversification strategies, demonstrating the multifaceted nature of sustainable project management in the LNG sector. Methodologically, this review adopts a systematic approach, utilizing established criteria for selecting and analyzing relevant literature and case studies. Data collection methods include extensive literature searches and case study analysis to gather insights into the implementation and effectiveness of sustainable project management practices in the LNG industry. The findings reveal a growing trend towards the adoption of sustainable practices in LNG projects, driven by regulatory requirements, investor preferences, and stakeholder expectations. However, several challenges persist, including technological limitations, regulatory complexities, and cost implications. Nonetheless, these challenges present opportunities for innovation and collaboration, fostering the development of new technologies and strategies to enhance sustainability in LNG project management. In conclusion, this review underscores the importance of sustainable project management in the modern LNG industry, emphasizing the need for proactive measures to address environmental, social, and economic concerns while meeting energy demands. The insights provided offer valuable guidance for industry stakeholders, policymakers, and researchers seeking to advance sustainability objectives in LNG initiatives.

Agent-based risk modeling of domino effects in urban LNG stations

As the transfer hub between natural gas and users, urban LNG stations (ULSs) are the important link of the whole LNG industry chain. Due to special geographical location and various process equipment, potential risks in ULSs, especially domino effect accidents, usually lead to catastrophic consequences and social impacts. In this study, a dynamic risk assessment model for analyzing domino effects in urban LNG stations (DRADL) based on agent modelling and simulation is proposed. Tanks and tank cars as well as vaporizers and boilers in ULSs are modeled. A set of physical process and effect models are employed as the simulation process in this paper. Considering the lightweight nature and narrow flammability limit of LNG vapor cloud, a cyclic process is applied to judge the consequences of vapor cloud dispersion, which could avoid overestimating the results. A real urban LNG station is taken as a case study for modeling its potential domino effect risk. The results demonstrate the effectiveness and the advantages of the proposed ABMS approach for LNG dynamic risk assessment. The proposed DRADL model takes into account the combined effects of explosion and fire and LNG characteristics, which can provide guidance for risk management and rescue operation of domino effect accidents in urban LNG stations.

Potential Domestic Energy System Vulnerabilities from Major Exports of Green Hydrogen: A Case Study of Australia

Australia has clear aspirations to become a major global exporter of hydrogen as a replacement for fossil fuels and as part of the drive to reduce CO2 emissions, as set out in the National Hydrogen Strategy released in 2019 jointly by the federal and state governments. In 2021, the Australian Energy Market Operator specified a grid forecast scenario for the first time entitled “hydrogen superpower”. Not only does Australia hope to capitalise on the emerging demand for zero-carbon hydrogen in places like Japan and South Korea by establishing a new export industry, but it also needs to mitigate the built-in carbon risk of its export revenue from coal and LNG as major customers, such as Japan and South Korea, move to decarbonise their energy systems. This places hydrogen at the nexus of energy, climate change mitigation and economic growth, with implications for energy security. Much of the published literature on this topic concentrates on the details of what being a major hydrogen exporter will look like and what steps will need to be taken to achieve it. However, there appears to be a gap in the study of the implications for Australia’s domestic energy system in terms of energy security and export economic vulnerability. The objective of this paper is to develop a conceptual framework for the implications of becoming a major hydrogen exporter on Australia’s energy system. Various green hydrogen export scenarios for Australia were compared, and the most recent and comprehensive was selected as the basis for further examination for domestic energy system impacts. In this scenario, 248.5 GW of new renewable electricity generation capacity was estimated to be required by 2050 to produce the additional 867 TWh required for an electrolyser output of 2088 PJ of green hydrogen for export, which will comprise 55.9% of Australia’s total electricity demand at that time. The characteristics of comparative export-oriented resources and their interactions with the domestic economy and energy system are then examined through the lens of the resource curse hypothesis, and the LNG and aluminium industries. These existing resource export frameworks are reviewed for applicability of specific factors to export-oriented green hydrogen production, with applicable factors then compiled into a novel conceptual framework for exporter domestic implications from large-scale exports of green hydrogen. The green hydrogen export superpower (2050) scenario is then quantitatively assessed using the established indicators for energy exporter vulnerability and domestic energy security, comparing it to Australia’s 2019 energy exports profile. This assessment finds that in almost all factors, exporter vulnerability is reduced, and domestic energy security is enhanced by the transition from fossil fuel exports to green hydrogen, with the exception of an increase in exposure of the domestic energy system to international market forces.

A new strategy for mixed refrigerant composition optimisation in the propane precooled mixed refrigerant natural gas liquefaction process

The natural gas liquefaction process occupies a considerable part of the energy consumption in the LNG industry chain, and efficient optimisation methods should be developed to improve the economic and environmental performances of this process. In this work, a new optimisation strategy based on the particle swarm optimisation (PSO) algorithm and bisection method was developed to optimise the propane precooled refrigerant process (C3MR). In the proposed optimisation strategy, the molar fractions of the mixed refrigerant (MR) components were directly adopted as variables in the PSO algorithm, and the MR flow rate was independently adjusted by the bisection method to satisfy the minimum temperature approach constraints. The results show that the optimal operating conditions reduced the energy requirement of the C3MR process by 4% and decreased the consumption of MR by 31.9%, compared to traditional using the flow rates of MR components as variables. The correlations among the properties of key streams were calculated based on the intermediate results of the proposed method and visualised with the heat map. The results show that the energy requirement of the C3MR process decreased with the increase of the low boiling temperature components and increased with the high boiling temperature components of MR.

Analysis of LNG Storage Tank Safety: A Comprehensive Model Approach with ANP and Normal Cloud

Global energy shortages continue in the post-epidemic era. As clean primary energy, LNG plays an important role in the energy structure adjustment. However, with the widespread use of LNG, storage tank leaks occur frequently. In order to highlight the risk status of critical risk areas of LNG tank leakage, the “Five-high” risk system for the LNG industry, with high-risk locations, high-risk equipment, high-risk processes, high-risk personnel, and high-risk substances as first-level elements, was built. Combined with the Analytic Network Process (ANP) and normal cloud model for quantitative analysis, a safety risk analysis and assessment model for LNG storage tanks based on the ANP-normal cloud model was developed. Safety analysis was conducted with the example of an LNG storage tank area of a factory. The results show that the risk level for LNG tank leakage is level IV, with high-risk equipment being the first-level element with the highest weight and risk. The reliability of the comprehensive model was verified by AHP and fuzzy integrated analysis, and the results were basically consistent with the factory safety evaluation report. The study realizes the quantitative and visual analysis considering the correlation of risk elements and provides a new quantitative method for the safety analysis of LNG energy.

Techno-economic assessment of upfront nitrogen removal in a baseload LNG plant

As the world's energy demand grows, the LNG industry is gaining popularity as a cleaner fossil fuel source. Studies on process enhancement have proposed that retrofitting upfront nitrogen removal (UNR) technologies like the lithium cycle to the cold section, increases the process efficiency, and plant capacity and decreases power consumption. In this paper, an economic evaluation is conducted for varying percentages of UNR to study its profitability compared to the conventional cold section (base case) by calculating the grass-root capital expenditure (CGR) and cost of manufacturing (COM). The cost incurred to produce one million BTU LNG (COE) is used as a basis to compare the cases and calculate the increment in profit. While the techno-economic impact was studied for a range of UNR percentages, the specific results for 87.5 % UNR are as follows. The CGR and COM for the cold section alone decrease by 3.2% and 2.3% respectively compared to the base case. The CGR and COM of the lithium cycle increase linearly with the UNR percentage. The total annual cost (TAC) and LNG energy content increased by 12.3% and 4.5% respectively over the base process. This leads to a 7.4% COE increment over the base case for 87.5% UNR. The profit calculation for LNG price of 15$/MBTU showed a 4.27% or 101.74 million $/year increase in profit for 87.5% UNR case as compared to the base case.

Concurrent 3. Presentation for: Examining the challenges and opportunities for Australia as an LNG producer against the backdrop of rising domestic renewables output and global interest in ‘carbon-neutral’ LNG

Presented on Tuesday 17 May: Session 3 A massive global exporter of natural resources, Australia took the crown as the world’s top LNG producer at the end of 2018 and cemented its position in the following years with a slew of new LNG projects. But burgeoning LNG production in rival countries such as Qatar and the US in recent years has put the three countries neck and neck. As a party to the Paris Agreement which advocates climate change, Australia has held fast to its commitment of reducing carbon emissions by increasing the output of renewables such as solar, wind and hydro amid declining domestic gas production. At the same time, the country has attempted to up its ‘carbon-neutral’ LNG offerings in response to a global shift towards decarbonisation and net-zero targets. But what do all these mean for the LNG producing country? Could a rise in renewables output inevitably sound the death knell for the country’s LNG industry, which relies on gas for feedstock? Where does Australia stand in comparison with other countries, particularly Qatar and the US, when it comes to producing ‘carbon-neutral’ LNG? This paper will examine what the recent increase in renewables output in Australia to all-time highs and growing global interest in ‘carbon-neutral’ LNG mean for Australia as an LNG producer, delving particularly into the challenges and opportunities that accompany these developments for the country. To access the presentation click the link on the right. To read the full paper click here

Concurrent 19. Presentation for: Viral mutations, vaccine effectiveness and rapid tests – COVID-19 risk management in the two largest LNG producing countries, Qatar and Australia

Presented on Wednesday 18 May: Session 19 The SARS-CoV-2 pandemic created challenges for the oil and gas industry. Qatar experienced three significant waves during the pandemic that disproportionately affected the workers in shared accommodation. In Australia, the public health measures limited the spread of SARS-CoV-2 in the industry until the Omicron wave. Anti-SARS-CoV-2 seropositivity was assessed in five oil and gas subcontractors and five hospital subcontractors in Qatar between 21 June and 9 September 2020. Vaccine effectiveness was assessed in Qatar. Vaccine effectiveness in an LNG tanker crew off Gladstone was calculated. The initial study in Qatar included 4970 craft manual workers (CMWs) who were mostly men (95.0%). Infection positivity (antibody and/or polymerase chain reaction (PCR) positive) ranged from 62.5% (95% CI: 58.3–66.7%) to 83.8% (95% CI: 79.1–87.7%). Only five infections were severe and one was critical – an infection severity rate of 0.2% (95% CI: 0.1–0.4%). Rapid antibody tests (RATs) were effective in diagnosis of the SARS-CoV-2 virus infections. Vaccine effectiveness against severe, critical or fatal infections were above 90% in both the Qatar and Australian studies, but protection against infection waned significantly after 6 months. In Qatar and Australia, the industry implemented effective control measures including the use of RATs, PCR tests, test, trace, isolation, quarantine (TTIQ) and vaccination. In both countries, the LNG industry collaborated with public health experts and other experts and was involved in research to assess and manage the risk of COVID-19. Production of LNG was not affected. Participation in public health research in both countries contributed to important scientific publications and protected the industry. COVID-19 may become endemic. To access the presentation click the link on the right. To read the full paper click here

Examining the challenges and opportunities for Australia as an LNG producer against the backdrop of rising domestic renewables output and global interest in ‘carbon-neutral’ LNG

A massive global exporter of natural resources, Australia took the crown as the world’s top LNG producer at the end of 2018 and cemented its position in the following years with a slew of new LNG projects. But burgeoning LNG production in rival countries such as Qatar and the US in recent years has put the three countries neck and neck. As a party to the Paris Agreement which advocates climate change, Australia has held fast to its commitment of reducing carbon emissions by increasing the output of renewables such as solar, wind and hydro amid declining domestic gas production. At the same time, the country has attempted to up its ‘carbon-neutral’ LNG offerings in response to a global shift towards decarbonisation and net-zero targets. But what do all these mean for the LNG producing country? Could a rise in renewables output inevitably sound the death knell for the country’s LNG industry, which relies on gas for feedstock? Where does Australia stand in comparison with other countries, particularly Qatar and the US, when it comes to producing ‘carbon-neutral’ LNG? This paper will examine what the recent increase in renewables output in Australia to all-time highs and growing global interest in ‘carbon-neutral’ LNG mean for Australia as an LNG producer, delving particularly into the challenges and opportunities that accompany these developments for the country.

Viral mutations, vaccine effectiveness and rapid tests – COVID-19 risk management in the two largest LNG producing countries, Qatar and Australia

The SARS-CoV-2 pandemic created challenges for the oil and gas industry. Qatar experienced three significant waves during the pandemic that disproportionately affected the workers in shared accommodation. In Australia, the public health measures limited the spread of SARS-CoV-2 in the industry until the Omicron wave. Anti-SARS-CoV-2 seropositivity was assessed in five oil and gas subcontractors and five hospital subcontractors in Qatar between 21 June and 9 September 2020. Vaccine effectiveness was assessed in Qatar. Vaccine effectiveness in an LNG tanker crew off Gladstone was calculated. The initial study in Qatar included 4970 craft manual workers (CMWs) who were mostly men (95.0%). Infection positivity (antibody and/or polymerase chain reaction (PCR) positive) ranged from 62.5% (95% CI: 58.3–66.7%) to 83.8% (95% CI: 79.1–87.7%). Only five infections were severe and one was critical – an infection severity rate of 0.2% (95% CI: 0.1–0.4%). Rapid antibody tests (RATs) were effective in diagnosis of the SARS-CoV-2 virus infections. Vaccine effectiveness against severe, critical or fatal infections were above 90% in both the Qatar and Australian studies, but protection against infection waned significantly after 6 months. In Qatar and Australia, the industry implemented effective control measures including the use of RATs, PCR tests, test, trace, isolation, quarantine (TTIQ) and vaccination. In both countries, the LNG industry collaborated with public health experts and other experts and was involved in research to assess and manage the risk of COVID-19. Production of LNG was not affected. Participation in public health research in both countries contributed to important scientific publications and protected the industry. COVID-19 may become endemic.

Global LNG market: supply-demand and economic analysis

The transition to clean and low-carbon energy is an irresistible trend globally that drives the scale of trade in the global LNG market to grow continuously. The paper reviews the global LNG trade in 2020 and forecasts the future LNG supply and demand. On this basis, the costs in segments of a LNG project are analysed from the perspective of the LNG industry chain. The feasibility of export from LNG projects and the preferred target markets are determined by calculating the economic index of projects. It is concluded that the possibility of future rebound in oil prices and the demand growth in the incremental market in emerging Asian countries are most likely to determine the capacity scales of new LNG projects around the world and contribute to a dynamic balance in the LNG market in the medium- and longterm. The costs in different segments of the LNG industry chain vary greatly with the availability of resources and markets. The economics of LNG export depend on the demand for LNG imports in end markets, the cost plus in different segments of the industrial chain, and the affordability of end consumers. Through the cost and economic analysis on typical LNG Projects, Qatar is found still the most economical and highly profitable country in the global LNG export market nowadays. Unsatisfactory economic performance is a common reason for delayed investments in many large LNG projects in Australia and other countries.

Enhanced Megaproject Management Systems in the Lng Industry: A Case Study from Qatar

Enhanced Megaproject Management Systems in the Lng Industry: A Case Study from Qatar

An analysis of the U.S. - China Trade War’s impact on global natural gas markets and the U.S. Coast Guard’s LNG inspection workforce

In this paper, the development and capabilities of the 2020 World Gas Model (WGM) are presented and exemplified through the analysis of two important case studies currently facing the natural gas market, a key component of the global energy sector. The goal of the United States–China Trade War case study is to analyze the potential short- and long-term effects of a prolonged trade war under several different, possible scenarios. Results from the study indicate that while increased tariffs on LNG trade from the U.S. to China greatly reduce the amount of trade volume between the two countries; however, the overall economic effect is negligible. The U.S. Coast Guard (USCG) LNG inspection workforce planning case study utilizes the WGM to provide future workforce demand for USCG personnel based on the growth of the U.S. LNG industry. The results from the study indicate that in order to avoid restriction on the U.S. LNG industry, the USCG must increase its LNG inspection workforce at a rate between 10% to 15% per annum. The U.S. - China Trade War effects on the USCG LNG inspection workforce were found to negligible as U.S. trade levels remain heightened and ever-growing despite increasing tariffs or Chinese domestic gas production.

The emerging hydrogen economy and its impact on LNG

Hydrogen is gaining prominence as a critical tool for countries to meet decarbonisation targets. The main production pathways are based on natural gas or renewable electricity. LNG represents an increasingly important component of the global natural gas market. This paper examines synergies and linkages between the hydrogen and LNG values chains and quantifies the impact of increased low-carbon hydrogen production on global LNG flows. The analysis is conducted through interviews with LNG industry stakeholders, a review of secondary literature and a scenario-based assessment of the potential development of global low-carbon hydrogen production and LNG trade until 2050 using a novel, integrated natural gas and hydrogen market model. The model-based analysis shows that low-carbon hydrogen production could become a significant user of natural gas and thus stabilise global LNG demand. Furthermore, commercial and operational synergies could assist the LNG industry in developing a value chain around natural gas-based low-carbon hydrogen.

Modification of the cascade methane liquefaction process to improve the efficiency of the system

In recent years, the dynamic development of the LNG industry has been observed. This is largely due to the transition of many countries from coal-based energy to greener energy. Natural gas is regarded as an intermediate fuel. Natural gas can be transported by pipeline, but in many cases it is more economical to transport it in a liquefied form. The liquefaction process is very energy-consuming, which is why many researchers are focused on optimizing this process. This work is an attempt to optimize the operation of the basic cascade natural gas liquefaction system. The proposed modifications contribute to a significant reduction in the costs of the liquefaction process.

РОССИЯ В УСЛОВИЯХ ТРАНСФОРМАЦИИ ГЛОБАЛЬНОГО ЭКОНОМИЧЕСКОГО ПОРЯДКА

The availability of energy re-sources, the efficiency of their use, the expansion of the segment - this determines the appearance of the modern world economy. At the same time, cy-clical periods of high hydrocarbon prices contrib-ute to the gradual rejection of their use in favor of more profitable and attractive resources, and peri-ods of relatively low prices do not allow investing in new, complex energy projects. This uncertainty of market prospects, the presence of many direct and indirect factors that affect it, especially at present, lead to unpredictable actions and the dif-ficulty of returning to equilibrium. In this article, the author analyzed the world economic order, when the structure of the national economy of Russia began to change, and the desire to escape energy dependence in its development doubled, and the coronacrisis accelerated these processes due to the decline in world production. The au-thor is convinced that in such conditions, Russia cannot and should not abandon the segments of the world energy market that it won, but it will be able to maintain it, as well as its influence with the help of some strategies. In any case, the task will not be simple. According to many forecasts, the global LNG market will grow in the coming de-cades, and the duration of the launched processes in the field of creating its own LNG industry is calculated for decades. If the «gas age» lasts, for example, another 30-40 years, then even in this version, the nascent Russian energy sector has every chance of reaching the final «plus.»

Exploring New Shores: An Overview of the Legal Landscape Relating to the Supply and Transportation of LNG from Canadian Ports

This article provides an overview of the key areas of the legal landscape downstream of liquefaction terminals in the context of Canadian LNG projects. This will be of particular interest to those involved in Canada's nascent LNG industry, including project proponents, buyers and sellers of LNG, and owners and operators of LNG carriers and other vessels intending to load LNG, either as cargo or bunker fuel, from a terminal in Canada. Canada’s LNG industry has had a rocky start in some respects, with many projects having been shelved and a number of the remaining projects facing an uncertain future due to market conditions, regulatory obstacles, and other challenges. However, there continue to be many factors supporting the development of LNG liquefaction capacity in Canada, including the desire to supply the world with responsibly sourced, cost-effective, and relatively clean fuel, and it is expected that a number of projects will ultimately proceed. The supply and transportation of LNG from such projects once they become operational will engage the body of maritime laws governing the operation of ships in Canadian waters and, where relevant, Canada’s export laws. Other requirements may additionally apply by virtue of the contractual arrangements typically entered into in connection with such activities. Such regulatory and other requirements, and their place within the broader LNG value chain, are the subject of this article.