LNGA Boon to the Natural Gas Industry
Authors: Vaughan Harold E. 
Published: December 2007

One of the greatest problems facing producers of natural gas is that of transporting it economically from the source of supply to the market points that frequently are separated by vast distances. Liquefaction may be the best solution.

Introduction

Much interest has developed in liquefied natural gas during the last 10 years, and two basic reasons account for this interest. One is the discovery of huge natural gas reserves in areas that cannot be connected by pipelines to hungry markets. This situation exists in numerous places throughout the world. For example, large reserves of gas have been discovered in Alaska, Algeria, Brunei, Libya, Nigeria, and Venezuela, whereas substantial markets for this gas exist in England, France, Italy, Spain, Japan, the United States and other countries. The real problem is finding an economical means of transporting the gas from the sources of supply to the markets. In some cases, transportation in liquefied form is a possible solution. The other basic reason for this interest in LNG is the need to store gas during periods of low demand, so that large volumes will be available on short notice to meet the total requirements of consumers usually during the very coldest days of the year -when the demand exceeds the throughput capacity of the transmission pipelines, the capacity of underground storage, and the supplies of manufactured gas. Meeting these peak loads with a particular source of supply is commonly referred to as peak-load shaving. Interest in the use of LNG in the U. S. and Canada has centered almost entirely in this type of service. It follows, then, that there are basically two types of LNG operations. One is the base-load-type project, which requires sufficient liquefaction, transportation, and regasification capacity to maintain movement of the gas in liquefied form to markets throughout the year at the prescribed rate. However, for this type, the required LNG storage capacity may be relatively small-just enough to absorb fluctuations in the LNG flow caused by tanker loading and unloading operations, plus some allowance for delays in shipping. The peak-load-shaving plant, such as we have in the U. S., is an entirely different type of operation and is actually an LNG storage facility capable of delivering large volumes of gas when needed. The liquefaction rate is low because usually 200 or more days during the year will be used to MI storage in preparation for the cold days. But the regasification preparation for the cold days. But the regasification rate is high enough, in some cases, to empty storage in only 5 days. During the last 3 or 4 years, interest has developed in other uses for LNG. For instance, it has been used successfully in small satellite gas distribution systems. Also, LNG is being considered as a propulsion fuel for cars, trucks, buses, trains, supersonic aircraft and industrial equipment. The ability to transport LNG by tank truck has been demonstrated on several occasions over distances up to 2,500 miles.

Base Load Projects

Let us consider first the extent to which interest in base-load-type projects has developed. One such project is in full operation. Two more will begin project is in full operation. Two more will begin operating in 1969, and several other projects are either firm or in advanced stages of planning.

JPT

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