Small Scale LNG

Emerging Technologies for Small-Scale Grids

Tony Regan
DataFusion Associates

SIEW Thinktank Roundtable, Singapore

27 October 2017
DataFusion Associates
DataFusion is a Singapore based energy consulting business focused on oil & gas, energy and utilities in Asia.
We offer a wide range of services:
• Strategic consulting
• Business and Project Development (feasibility studies, business case)
• Project Management
• Asset development & enhancement
• Due diligence
• Financial advisory services
• Organizational Development
Whilst focused on Asia and based in Singapore, we have a presence in the cities of Beijing, Melbourne, and
London.
To provide the widest range of commercial, technical and financial advisory services to our clients we work in
association with:
Incitias, an engineering design consultancy based in Melbourne, providing multi-discipline technical support for the oil & gas,
LNG, marine and defense sectors worldwide and core engineering design services focused around process, facilities, utilities
and structures with specialist services for due diligence and peer review, feasibility study, option appraisal, conceptual design
and project management. www.incitias.com
Contact: Tony Regan Tel 65 6254 4791, Mobile 65 9862 0965 tony.regan@datafusion.com.sg

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The traditional LNG business model
• Integrated model
• Production/transportation and storage
• Long term offtake agreements
• New model emerging
• Integration within a country
• Local production
• More suppliers
• Transportation by ship, truck, train
• Delivery to a single end user
• Many more buyers
• Simpler lower cost infrastructure
• Still underpinned by long term offtake
agreement

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LNG Trade Flow Base Load

Power

LNG Production
Trucks Floating Terminal
Small Scale (<1 mtpa) Industry
[100+ Plants] [25 Terminals]

Vessels
[478 LNG Carriers]
Onshore Terminal
Domestic
LNG Production [101 Terminals]
Large Scale (2-8 mtpa)
Trains Emerging Market
[34 Plants]

Transport

Ships Trucks

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Example of small/medium scale LNG market
• Large scale LNG – Snohvit 4.1 million tonnes/annum
• Small Scale LNG- 15,000 tpa at Tjeldbergodden,
Norway + 3 more
• 28 small LNG terminals
• Small scale storage
• Feeder vessels – 7,500 – 20,000 cu.m
• Small LNG carriers – 1,100 – 10,000 cu.m
• Trucks 20-40 tonnes
• Rail tank cars – 60-100 tonnes
• Pipelines
• 7 LNG bunker terminals
• Customers
• Industry
• Power
• Trucking companies
• Ferries
• Offshore service vessels/Coastguard

China market developing DataFusion

along these lines, Indonesia could be next
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What do we mean by small scale? mean by
• Conventional LNG – 3-7 million tonnes per annum
trains
• Mini size 20 – 100 tonnes/day
• Small size 100-500 tonnes/day
• Mid size 500 – 3000 tonnes/day

32 million tonnes per annum

10 tonnes per day

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 What do we mean by small scale? scale LNG?
Singapore LNG terminal– 11 mtpa

Nynashamn LNG terminal 0.25 mtpa

Large bullets
760 cu.m

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What do we mean by small scale?

Small LNG carriers

• Coral Methane 7,500 m3
• Coral Energy 15,600 m3

Conventional LNG carrier – circa 145,000 m3

Q Flex 220,000 m3
Q Max 244,000 m3

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What do we mean by small scale?

Trucks
Trains
Ships
Iso tanks

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China
Qinhuangdao, 2 mtpa Yingkou LNG

• 20 LNG receiving terminals Caofeidian Tangshan, 3.5 mtpa

Tianjin 3 mtpa Dalian, 3 mtpa
Tianjin 3 mtpa
• 4 small scale LNG terminals Nangang Yantai

Qingdao, 3 mtpa
• 100+ small scale liquefaction plants
Lianyungang 3 mtpa
• 5 million NGV’s
CHINA
Yancheng, 3 mtpa

Rudong, Jiangsu, 3.5 mtpa

• 250,000 LNG fuelled trucks Wuhaogou, 1 mtpa
Qidong, 3 mtpa

Shanghai, 3 mtpa
• 3,300 LNG service stations Ningbo, 3 mtpa Zhoushan 3 mtpa

Wenzhou, 3 mtpa
• 10,000 LNG trucks
Fuqing

• 106 inland river LNG fuelled vessels Shenzhen Diefu 4 mtpa Fujian, 5.2 mtpa
Dongguan 1 mtpa Zhangzhou 3 mtpa Yuedong Jieyang 2 mtpa
Zhuhai, 3.5 mtpa

Fangchenggang Dapeng, 6.7 mtpa Regasification

Yangiang
Yuexi
Haikou 0.6 mtpa Existing
Beihai (Guangxi), 3 mtpa Firm
Hainan, 2 mtpa
Proposed

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SE Asia LNG Infrastructure
LNG terminals Liquefaction plants
Indonesia Brunei LNG
Arun Malaysia
Bali Bintang
Lampung FLNG Satu
West Java Indonesia
Malaysia Bontang
Malacca Tangguh
Singapore Donggi Senoro
Thailand Sulawesi
Map Ta Phut PNG LNG

Substantial large scale

LNG liquefaction plant infrastructure to support
LNG terminal
emerging small scale –
Proposed LNG terminal
many supply hubs.

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 Indonesia

Note the small volumes in

the blue boxes

West Java FSRU 400

mmscf/d
Kupang 5 mmscf/d

Source: SKK MIGAS DataFusion Associates 12

FSRU

Excelerate LNG, Bahia Blanca Argentina PGN FSRU Lampung, Indonesia

25 floating terminals in operation

FSRU storage capacity ranges from 125,000 to 263,000 cu.m. but most about
170,000 cu.m.
These too big to support many of the emerging gas to power opportunities
Need some small/medium size FSRU’s
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First small scale floating terminal

Source Gas Entec

Separate Floating Storage Unit and Floating Regasification Unit (0.5 mtpa)
Benoa, Bali
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Small scale LNG value chain

Small scale LNG truck/ISO Small onshore LNG fuelled

Piped gas LNG truck Service station
liquefaction container storage/regas trucks

Small Industry
Liquefaction FSU/FRU
plant

Small scale Small scale Truck

onshore Power
LNG carrier pipeline/barge
storage/regas

LNG
terminal Mining
Small FSRU

LNG fuelled
ships

More complex than large scale value chain – more options

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Small scale can be relatively expensive

Small is relatively expensive:

Conventional 170,000 m3 LNG carrier – approx US$210 million
Mid scale 30,000 m3 LNG carrier (Type C) – approx US$105 million
Small scale 12,000 m3 LNG carrier (Type C) – approx us$50 million

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How do costs compare with conventional LNG
Higher unit costs than for large scale LNG
• Costs more to transport a cubic metre of gas in a small carrier compared with a
large carrier
• Costs much more to store a cubic metre of LNG in a small bullet than a full size
terminal tank
BUT
• Small or midscale does not need to be more expensive if concept is properly
chosen around cost optimisation, considering logistics, technologies and if
possible existing available infrastructure or natural shelter.

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Small and mid scale v conventional
Small or midscale does not need to be more expensive if concept is properly chosen around cost optimisation,
considering logistics, technologies and if possible existing available infrastructure or natural shelter.

Traditional Onshore Regas and Terminal Development

Conventional
Large Scale REGASIFICATION
Gas Production Liquefaction MARGIN Pipeline >2.5MTPA
$1-2/MMBtu $2-3/MMBtu
Shipping
$1.5-$2.5/
with Storage
$0.1-$0.5 End-user: $8.0-$10/MMBtu
$0.5-$1.2 $0.55-$0.9

Medium Scale
Margin Mid-Scale Regas and Storage End-User Medium Size
Shipping
$1.2-$1.4
$2.5-$3.5 $0.8-$1.5 $10.5-12/MMBtu 1-2MTPA

Small Scale End-User

Margin
Shipping
Small Scale Regas and Storage Small Scale
$2.5-$3.5 $0.6-$1.5 $10.5-12/MMBtu
$1.0-$1.2 0.3-0.8MTPA

Large Scale Small Scale Small Scale End-User Small Scale

Margin HUB Storage Distribution Regas and
Shipping $10- Spoke and Hub
$1.5-$2.5 $0.5-$1.1 $0.4-$0.8 Shipping Storage
$0.5 $0.5-0$0.75 12/MMBtu 0.1-1MTPA

Optimised facility, minimising storage, maximising logistic chain, utilising existing infrastructure, choice between:
regas on shore with storage onshore or FSU, FSRU (regas barge) or FSU and regas offshore.

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Optimization
Optimization of logistic chain cost can bring advantage in the order of
$0.5/MMBtu. This may include:
• Storage minimization
• Utilisation of existing key infrastructure such as berths.
• Slower steaming of LNG carriers – sailing at 10 knots rather than 14
knots can result in a 70% fuel saving.
• Maximisation of LNG carrier utilization – sharing with other projects
• LNG supply within a range of approximately 1,000 nautical miles for
small scale and less than 2,500 nm for midscale.

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SNGTM Barge with 6000m3 Storage 20-30mmSCFD
Draught<4m,
LOA=100m
B=33m,
Loading rate
800m3/hour
IMO-IGC, SIGGTO,
ISGOTT, ISO and
ASME Standard
compliant.

SNGTM Barge with 3X 2270m3 (100%) Storage Regas Capacity Modular : From 3-30mmSCFD
Gas Engine for Power Generation on Board 8-52barg.
Source: INCITIAS 20
SNG BargeTM 30-110mmSCFD for use with FSU

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Source: INCITIAS
 SNGTM Barge with 8X 2100m3
Draught<4m,
LOA=120m
B=36m,
Loading rate
1200m3/hour
IMO‐IGC, SIGGTO,
ISGOTT, ISO and ASME
Standard compliant.

SNGTM Barge with 8X 2100m3 (100%) Storage Regas Capacity Modular : From 3‐75mmSCFD Gas Engine for
Power Generation on Board 8‐52barg.
Source: INCITIAS DataFusion Associates 22
Shallow Water Multi Modal LNG distribution
• 3x 2270m3 LNG storage in C-
type tank

• Transhipment on Barge to 20”

and 40” ISO Container, to enable
sub distribution

• Draught 3.4m
• L=95m
• B=30m
• Speed: 8kn-10kn

• Tug Push or Pull

• Can moor and offload to

standard 6000DWT wharfs
available in most south east
Asian island ports

• Optional: Articulated Tug Barge

solution.
Source: INCITIAS
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 Large Scale to Small Scale Regas Comparison
Assumption 20 year Design life, within Tropic of Capricorn

Jetty Onshore Regas Onshore Infrastructure

Onshore
Power 53.5 cents-
CAPEX 65- 85 750mmSCFD Storage 180K (breakwater)access
750mmSCFD Onshore Regas Generation roads, dredging, ETC) $1.44
million 90-150million 160-220million 25million 50-200million per MMBtu
~3- 16-25cent/ 8- 25-
1.5-2.5
4.5cent/MMBtu MMBtu 12cent/MMBtu 100cent/MMBtu
cent/MMBtu

Small Scale Regas Land, Infrastructure,

Jetty 75mmSCFD Storage 20K access roads, dredging,
35million breakwater
62 cent-88
75mmSCFD Std. Small Scale CAPEX 15 million 25million
Regas 10-50million cents
~7cent/MMBtu @20 years 38-42cent/ MMBtu @20 12-14cent/MMBtu @20
years (incl.fuel gas) years 5-25 cent/MMBtu @20 per MMBtu
years

Regas Barge shallow water 75mmSCFD

75mmSCFD With 12k Storage Land, Infrastructure, access roads,
Jetty
Optimized 45million
dredging, breakwater 53.5cents
CAPEX 9.5 million 5 million
Shallower Water Regas 45cent/ MMBtu @20 years (incl.fuel gas)
per MMBtu
~5.5cent/MMBtu @20 years 3 cent/MMBtu @20 years
Barge

Based on a real project in Indonesia (with execution currently on hold) with local infrastructure provider based on turnkey pricing firm
quotation and in country barge construction to meet local content with design done by reputable engineering house and reputable cryogenic
equipment vendor and construction supervision accuracy +/-20%DataFusion
as BOOT contact.
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Last word
• Small may be beautiful but it can also be high cost. First movers found it
very difficult to find economically viable solutions
• Now, after much R&D, we have a good suite of economically viable
solutions but challenges remain
• However, if one selects the right technology based on the site and local
requirements and optimise around the logistic chain, minimise storage and
avoid costly infrastructure developments (such as extensive capital
dredging, construction of breakwaters) and by smart selection of site,
technology and contracting strategy (say BOOT or EPCM, but also lease)
then small scale LNG project economics can be low enough to enable gas
to be supplied to even the smallest power plants
• Optimise the entire supply chain and scale equipment to the demand and
unit costs can be comparable with large scale – 53 cents/MMBtu
• We now have economically viable solutions for the small scale market

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