Traditionally, the transportation of LNG has been done in big LNG carriers that move the product in the most economical way from the producers. LNG is then re-distributed via pipelines to the final users. But the same that other energy sources have been changing the way they are transported over the years, there are changes in the LNG distribution and transportation that make it feasible and even economical (specially if we take into account the whole of the supply chain) to move small LNG parcels with the use of Small LNG carriers, able to get closer to the final customer.
Due to the changes in the way energy is consumed and the increase in Liquefied Natural Gas (LNG) movements, we at Lauritzen Kosan A/S see clear opportunities for the development of Small LNG Carriers that would help in the following ways:
- Coping with the peaks in demand: In busy tourist destinations the demand for energy greatly varies during the year. In other places, demand varies due to big temperature changes. A small LNG Carrier could help during those peaks, allowing for the construction of a pipeline that covers only the valley periods (instead of a much bigger and more expensive one that can cope also with the peaks), and therefore greatly reducing the investment required and the risk involved.
- Coping with expanding demand over time: In many cases, demand is expected to grow strongly over the years, and the pipelines are being built to last for about 10 years, after which they will have to be duplicated in some routes. Small ships can make this transition smoother.
- Covering small islands.
- Reducing the number of big receiving terminals, with jetties for 150,000 cbm or bigger ships and storage tanks of 300,000 cbm or bigger. The flexibility of the small ships would allow for instance to only build one major terminal and several satellite smaller ones, thus reducing drastically the total LNG inventory in the system.
- Flexibility of supply: in case of problems in the supply by pipeline, the Lauritzen Kosan Small LNG carriers could transport product from any of nearby big receiving terminals to the final terminals, avoiding the risk of a black-out.
- Re-balancing stocks in all the terminals: The Small carriers could help balancing the terminals.
- Coping with changes in demand. In cases where the product contracts allow it, these small carriers can allow for re-balancing demand, moving product delivered to one terminal to a more needed destination.
Lauritzen Kosan’s solution
This scenario creates a great opportunity for the transportation of LNG in a small scale, allowing for the balancing of the system, and adding huge flexibility to it.
Lauritzen Kosan has designed a 4,000, a 8,000 and a 16,000 cbms small LNG / Ethylene carriers, able to transport LNG, ethylene, butadiene, propylene and LPGs. With such sophisticated vessels, not available today in the market, we can guarantee flexibility to confront the challenges of the LNG transportation, adding a backup solution in case of changes in the product pattern in the future. LNG requirements are minus 168 deg C, compared to the minus 104 deg. C of the Ethylene, so these ships will be extraordinarily capable of transporting all the alternative products.
This design is a basic one that can be modified and adapted to different needs and sizes. Please contact us if you would like to discuss any related project or you would like us to look at the best solution for your small ship LNG transportation.
Eduardo Perez Orue
Lauritzen Kosan A/S
Web: www.lauritzenkosan.com
As a reference, this is a MindMap of the Small LNG carriers advantages, markets and customers:
