SRV - the LNG Shuttle and Regas Vessel System (2004)

Abstract It is increasingly difficult for environmental, safety and security reasons to find suitable locations and obtain permissions to build new traditional LNG receiving terminals. New offshore, fixed or floating, LNG receiving system may therefore be an attractive alternative. We have called our version the "LNG Shuttle and Regasification Vessel System" or "SRV?". The SRV, is an LNG vessel with onboard LNG vaporisers. Regasified LNG is discharged via a turret and swivel through a mooring and unloading buoy connected to a riser and subsea pipeline. Two separate buoys will ensure continuous send-out by overlap between arriving and departing SRVs. An enlarged version of the SRV can also operate as a Floating, Storage and Regasification Unit or FSRU. A stationary FSRU will allow offshore side-by side discharge of traditional LNG carriers. A tandem transfer solution will increase regularity and operability for more exposed locations. The SRV shall be classified as a ship. This implies that the system can be built at regular shipyards and we expect vessel price comparable to normal LNG vessels. Furthermore we expect operating cost to be comparable to a regular LNG vessel. The SRV System will make use of a turret mooring and transfer system designed by Advanced Production Loading (APL) of Norway. The SRV vessel is capable of staying moored to the transfer system at a location offshore and perform its send-out function in severe weather conditions. The onboard regasification capacity is 600 million cubic feet per day. The vaporisation capacity is designed to empty a 140 000 m3 vessel in less that 6 days, but the capacity can be more than doubled by additional regas units. The regasification unit is a closed loop propane cycleeat exchangers developed by HamworthyKSE using cryogenic pumps delivered by Nikkiso. The propane cycle allows the SRV to regasify in areas with low sea water temperatures. It is the level of terminal service fee for the traditional receiving terminals that will determine the cost competitiveness of the system. Our example is showing an into pipeline cost advantage of 20 cent/MMBtu in favor of the SRV System. For low cost capacity expansion of existing terminals the SRV System is unlikely to be competitive. We believe, however, that the system will have a cost advantage against new land based terminals, in particular for small to medium throughput volumes. Normally one additional SRV is required to deliver the same volume as a traditional solution due to the regasifiaction time of each vessel on the buoy. In spite of this, the economics of the SRV system compares favourably to traditional receiving terminals. The FSRU solution is very competitive with fixed offshore and traditional onshore terminals. The versatility and environment friendliness of the SRV System is its undisputed greatest advantage compared to other solutions. New LNG import facilities USA, the world's largest consumer of natural gas, will not be able to meet the growing demand for gas from domestic production, or via pipelines from Canada. Several new LNG import terminals are consequently planned in the USA and Mexico. In the European market, Spain has experienced the largest growth in import of LNG during the past couple of years. Europe is seeking to expand the number of suppliers of natural gas, and new LNG import terminals are under construction in Spain, whereas several others are planned in the Mediterranean region. In Asia, Japan and Korea is the major buyer countries, but China has two import facilities under way and will become a significant LNG market in the future.