Development of Innovative LNG Production, Transportation, and Regasification System
Authors: Lee Jung Han , Yeol Lee Jae , Yoo Seongjin 
Published: May 2011

Development of economic means of gas transportation to long distance has been important technical and economic tasks in gas industries. In addition to the pipeline, LNG has been widely used for international trades by reducing the volume to 1/600. The recent relatively low gas price has brought the necessity of more economic LNG production, transportation, and regasification system (LNG chains). Since end-users receive final product as gas form, the LNG chains can be considered as interim means of transportation. All existing LNG chains are based on ambient pressure with -161 oC storage temperature. However, the ambient pressure storage requirement does not have to be followed, if other alternatives such as increased pressure system can be more economic. It is generally known that the increased pressure LNG chain cost more due to heavy storage tanks, and that the increased pressure LNG production results in incompatibility with existing facilities including LNG carriers and LNG terminals. However, if consistent LNG pressure and temperature scheme is maintained, the new system can have overall economy compared with traditional LNG chains. Innovative integrated LNG system has been developed by solving hurdles in every sectors of LNG chain. The new LNG system simplifies gas treatment system before liquefaction, and brings very high liquefaction efficiency. The new system solved the high cost hinder for pressure type storage tanks by adopting innovative hybrid design against cryogenic temperature and high pressure, consequently reduces the LNG production cost significantly. Though transportation and regasifcation costs are increased somewhat, the new system can provide overall competitiveness for small LNG plant. The " Cluster LNG?? of multiple small and medium LNG plants and consumers may bring substantial changes from current LNG business structure. The integrated solution will enable active developments of small and stranded gas field around world, which ultimately will contribute to the welfare of many people in developing countries.

1. Backgrounds

Natural gas has attracted more attention as future and growing energy source with potential abundance and environment benefits. However, natural gas also competes with other types of energy such as coal, oil, wind energy, and nuclear energy. The main objective of energy is " Generating heat needed for human welfare??. As long as it generates heat, people do not discriminate origins or production methods. Hence, the cost-effectiveness is important in the selection of energy.

Natural gas is transported by pipeline grid or as LNG or as compressed natural gas. Depending on the geographical distances or other factors, economic means of transportation is selected. LNG has been widely used as long distance transportation means especially for international trades. To make sense in business perspective, LNG production should be competitive not only over pipeline or compressed natural gas but also over other energy sources. Contrary to oil, LNG needs special handling in production, transportation, and regasification along with boil-off gas (BOG) treatment and safety provisions against flammable gas. Current LNG chain adopts ambient pressure with -161 oC storage temperature, because the condition is believed cost-effective. However, other alternatives are also acceptable provided technical and economic justifications are met.