SS: CNG and Other LNG Alternatives- CNG Marine Gas Transport Solution: Tested and Ready
Authors: Britton Paul S. , Dunlop John P. 
Published: October 2008

EnerSea has advanced its design for the marine transport of compressed natural gas (CNG) through use of its proprietary technology, VOTRANSTM ("Volume Optimized Transport and Storage"). Over the past six years, EnerSea's design has been validated through completion of all testing required by the American Bureau of Shipping (ABS) and project opportunities are now being progressed worldwide. E&P operators and many markets are increasingly expressing interest in transporting natural gas via CNG marine solutions.

Demands from energy intensive markets for basic or supplemental supplies of clean fuel to drive their economies have inspired the creative application of new and existing technologies to unlock additional natural gas sources. CNG marine transport provides an innovative and cost effective solution for use in harvesting gas resources which are of insufficient quantities to justify LNG projects or are located beyond the economic reach of pipelines.

Increases in the prices for crude oil and oil products over recent years have resulted in an immediate and negative economic impact on communities and consumers worldwide. Furthermore, while markets having access to multiple energy supply options have some measure for managing price volatility, energy-starved markets having limited means for procuring supplies are highly dependent on, and therefore much more vulnerable to, expensive fuel oil or diesel for their power generation and other energy needs.

These "stranded markets", such as island countries, have been investigating the merits of LNG for many years to provide a long-term, affordable natural gas supply along with its environmental benefits compared to fuel oil. LNG's attractiveness has diminished significantly during the recent oil price escalation, as inflation within the industry has dramatically affected the costs of LNG projects and as global markets compete aggressively over limited supplies from severely delayed projects. Fortunately, CNG solutions offer a rational option for small-to-medium markets seeking more affordable gas supplies.

This paper will describe the innovative VOTRANS CNG solution and the state of its readiness to meet the immediate energy needs of stranded markets worldwide. It will also present case reviews of two gas transport projects utilizing CNG marine transport solutions which are currently in preproject development planning.

Introduction

The precipitous increase in global energy prices over the past several years has created concern and economic distress amongst markets, governments and people worldwide. The resulting increases in fuel costs have taken a direct, immediate and negative economic toll on those communities and consumers.

Markets with convenient access to multiple energy supply alternatives have more options for managing price volatility than isolated, energy-starved markets that are limited in their means for procuring supplies. These "stranded markets" are highly dependent on expensive imported fuel oil or diesel for their power generation and other energy needs, and they are more vulnerable to increases in their prices.

Stranded markets, such as island countries, have been investigating for many years the potential for LNG to provide long-term, affordable natural gas supplies and environmental benefits compared to oil-based fuels. However, the perceived attractiveness of LNG has diminished as project costs have soared and as global markets compete aggressively over limited supplies from anticipated liquefaction projects experiencing protracted delays and cancellations.