According to data from the International Natural Gas Union, by the end of 2018, hundreds of small LNG liquefaction plants had been built in the world. In contrast, there were only more than 100 small LNG liquefaction plants in the world in 2014, with a total capacity of about 20 million tons / year. PwC estimates that by 2030, the scale of small-scale LNG projects in the global LNG market will increase to 100 million tons / year. At present, these projects are mainly distributed in China, the United States, Latin America, Australia and Canada. In addition, there are thousands of small regasification and import terminals in Japan, Türkiye, Spain and Northern Europe.
The rapid expansion of small-scale LNG projects in the world is mainly due to the following factors. First, relatively little capital investment. Compared with large-scale LNG projects, small-scale LNG projects have less investment. Second, the project itself has scalability. With the growth of market demand, small-scale LNG projects can add production modules on their own basis. Third, there is a large choice of supporting equipment for the project. Fourth, the time from the commencement of construction to the operation of small-scale LNG projects is relatively short. Finally, the project has strong flexibility in site selection, and is reliable near oil and gas fields, natural gas distribution stations, or in cooperation with CNG gas filling stations.
Project advantage analysis
By analyzing the main application fields of small-scale LNG projects, it is not difficult to find that the advantages of the project are that it can save fuel costs (replace diesel fuel, boiler fuel oil or liquefied petroleum gas and other fuels used by motor vehicle engines) and do not need to establish natural gas distribution network. In addition to the economy of fuel cost, whether to choose LNG as the fuel for motor vehicles also depends on the development and convenience of infrastructure such as regional gas stations and the total cost of owning such vehicles. At present, in areas where infrastructure such as gas stations has not been developed, the growth of market demand for small-scale LNG project products is still very limited. In addition, compared with petroleum products, the use of LNG is more environmentally friendly.
In terms of independent power supply, it is economically feasible to switch from using petroleum products to using LNG as power generation fuel. And compared with the construction of gas transmission pipeline network and power grid infrastructure, the development of small-scale LNG projects has more cost advantages. However, in the process of planning small-scale LNG projects, it is necessary to consider the logistics problem of transporting LNG to remote areas, build necessary infrastructure for consumers (including power generation units or boiler units fueled by natural gas, regasification facilities, etc.), and provide corresponding technical support for the local power grid. In addition to the need to develop and improve infrastructure, the development of small-scale LNG projects in remote areas may also face competition from alternative power supply modes (renewable energy, local energy varieties, small nuclear power plants, etc.), which are factors that should be considered when upgrading the regional power supply system and replacing petroleum products and other power generation fuels.
