Opportunities

for Small Scale LNG Supply Chain

in Latin America

2013. 7. 17

Youngsam Oh
1

Contents
Energy Market Trends & Change in NG Demands
LNG Supply to Island for Power Generation
LNG bunkering Scenario & future plan
Conclution

Energy Market Trends

Expectation for Shale gas

GAS

Concern in Oil supply

Environmental issue = strict regulation

OIL
OIL

LNG bunkering
=Emerging Markets
. LNG fueld ship
. Remote place
. Island bunkering

. Needs for new biz model

to overcome Economic recession
. Matured domastic NG market

Role of KOGAS
Storage

3 LNG Terminal
(1 under construction)
High Pressure Pipe Line

9 City gas
Companies

Distribution
4

Paradigm Change in LNG Storage

Large scale
LNG storage

Small scale Storage

LNG Tank Container

FSRU
Medium scale
LNG Storage
5

Change in NG Demands
Power Generation
Industry
City gas
Natural

Gas

Islands

Ship fuel

Remote area

LNG Bunkering Related Technology

LNG fueled ship

Tanks

LNG bunkering system

Fuel system

Engine
DSEC from General Dynamics NASSCO shipyard and TOTE
7

Who build the first

Vs.

Bunkering Demonstration
8

Concept of LNG supply to Islands

Backlyung Island
(15,000 kW)

Daechung Island
(3,550 kW)

Hose bunkering
(900 m3)

Sochung Islnad
(2,650 kW)
LNG Tank
Container
(50 m3, 2)
20 km

15 km

Power Plnt

Gas pipeline

LNG tank

Fuel Supplying
Facility

LNG Tank
Container
(230 m3, 8)
170 km

LNG Terminal

LNG Tank Container

Background of LNG supply to Islands

50%
increasement

Power generation unit cost by sources

0.75 m $

KRW/ kWh

0.479$/ kWh

Fixed cost
O&M

0.4 m $
Government
Subsidy

Labor cost

0.5 m $

Boiler oil

Diesel

Fuel cost

Islands

KRW/ kWh

Diesel

Heavy Oil

Land

NG

Anthracite
Coal

Bituminous
Coal

Nuclear

Fuel cost

Islands

Power gen. unit cost in Islands

Data from KEPCO

10

Status of Power Generation in Islands

Government
support island

Resident

No. of Power
Generator

Power
Capacity

A.V.Poewer
Generation

62

28,415

210

85,630 kW

222 GWh/yr

Loss in Power generation in

islands
M KRW

Sales profit
(2011)

Operation
Cost

Loss
(62 islands)

0.2 M$

1.45 m$

1.25 m$/yr

11

Estimated Unit Cost of Power Gen.

by sources

KRW/kW
Wind
Diesel Photo

15.6% -> 1.7 $/kW

25% -> 1.5 $/kW

Utilization Rate

Utilization rate
1 ~ 30
31 ~ 35
35~
Data from KEPCO

Order in Power Gen. Cost

LNG < CNG < Diesel < Photo < Wind
LNG < Diesel < CNG < Wind
LNG < Wind < Diesel < CNG
12

Island Power Gen. Market in Korea

Baengnyeongdo

15 islands

9,000kW

80sets of Diesel power

generations
Island

Daecheongdo

Yeonpyeongdo

Ulleungdo

7,700kW

18,500kW

3,500kW

Seungbongdo
1,950kW

Socheongdo

Power generation()

Jawoldo

2,650kW

Ulleungdo

18,500

Baengnyeongdo

9,000

Daechungdo

1,850

Sochungdo

2,650

Gaeyado

Yeonpyeongdo

3,350

1,500kW

Deokjeokdo

2,900

Wido

Jawoldo

1,650

2,850kW

Seungbongdo

1,950

Wido

2,850

Hongdo

2,350

Heuksando

4,000

Gageodo

1,050

Chodo

2,000

Geomundo

3,500

Chodo

Chujado

Chujado

4,400

2,000kW

4,400kW

Sub total

62,000

Deokjeokdo

1,650kW

2,900kW

Heuksando
4,000kW
Geomundo
Hongdo

3,500kW

2,350kW

13

LNG Transportation to Islands

Tank Truck

Cargo Ship

Tank container trailer

14

Usage of LNG Tank Container

Maximize storage efficiency with Stacking

Target of Development of LNG Tank Container

Mass Transportation of LNG to remote place and storage mean
Overcome limitations of Tank Truck LNG Transportation

New Features in Transportation and Storage -> New LNG Markets

15

LNG Tank Truck vs. Tank Con.

Storage + Lorry

Tank Con.

Features

On site LNG Tank

LNG transferring
Treatment of BOG
Long LNG transferring time
Difficulty in Scale up

No on site LNG tanks

Exchanging Tank Con.
Quick Installation
No LNG transferring
No BOG
Quick Ready to supply
Easy to Scale up
16

Specification of LNG Tank Con.

20ft IMO Type -B

40ft IMO Type-7

Model

US-CN-12V-0.9

Model

US-CN-12V-0.9

Fluid

LNG

Fluid

LNG

Internal Volume

12,902

Internal Volume

26,500

Storage Volume

11,612

Storage Volume

23,850

Design Pressure

0.9 Mpa G

Operating Pressure

0.6 Mpa G

Design Pressure

0.9 Mpa G

Operating Pressure

0.6 Mpa G

Design Temperature

-196~40

Design
Temperature

-196~40
Inner. A240-304

Material

Outer. A240-304

Inner. A240-304
Material

Hyperlite

Outer. A240-304
Hyperlite

Insulation Capacity

Thickness 212mm
Volume 8.20

Insulation Capacity

Thickness 217mm
Volume 15.5

Vacuum Degree

0.05 torr (on Operating)

Vacuum Degree

0.05 torr

Code Stamp

Register / KGS

Code Stamp

Register / KGS
17

Steps for small scale LNG supply

LNG

Terminal

Remote
Mass

Demands

Remote Place

LNG

Loading

LNG

Unloading

Road

Transferring

18

LNG Transportation to Fixed Tank

Fixed LNG tank

LNG loading
Wire Crane unloading

Shipping
Side unloading

Off loading to Tank

19

Methods of Unloading Tank Con.

Features Conventional unloading facility

Crain

Reach Stacker

Special Forklift

Pros

Availability : Already developed

Convenience : Well developed

Cons

Safety : Risk in lifting containers

Economics : High operating cost as well as facility

20

Sliding Type Unloading System

Feature

Pros

Cons

Well designed sliding type tank container unloading system

Economics : Not expensive to facilitate

Safety : No risk to drop to the ground
Convenience : Quick installation and easy to move
Maintenance : Moving parts
21

Steps of Unloading

22

Concept of Sliding Type Unloading

23

Idea for Usage of LNG Tank Con.

Remote

Demands
Vaporizer
LNG Station using
LNG Tank Con.

LNG

Ship
Compressor

CNG

Vehicle

LNG

Vehicle

24

Small Scale LNG Supply Chain

Island B
Island A
Industry A
Villages
Distributed
On site LNG Storage

Industry B
Buildings

Industry B

Island C

Buildings
Villages

Unit shipping cost

Diesel
20ft T.C.
40ft T.C.
Bunker Shuttle

$1.6/Kcal
$1.8(13% over)
$1.3(22% save)
$.7(56% save) , 1.5Km3 scale

25

Scenario to Supply LNG to Island

Initial state
LNG Terminal

Ports

Power Plant

Ports

Cargo Vessel

Island

Power Plant

LNG Terminal

Cargo ship

Tank Container

26

Scenario to Supply LNG to Island

Final state
LNG Terminal

Ports

Power Plant

Pipe Line

Island

Final step
Power Plant

Tank Container
LNG Terminal
Bunker shuttle

On Shore
Small Tank
27

LNG supplying network using shuttle

Island

Power Plant

Tank Container

LNG Terminal
On Shore
Small Tank

Island

Bunker shuttle

Power Plant

Container shuttle

Tank Container
Container
Terminal
28

Plan for LNG Bunkering in Korea

LNG fueled ship

Island power generation

Incheon
LNG Terminal
Pyungtaeck
LNG Terminal

Samchuck
LNG
Terminal

Off shore LNG Terminal & Ship to Ship Bunkering

Jeju

Island

Tongyoung
LNG Terminal
Bunkering Ship
29

Conclusion

Sabin
Pass

Cargo Vessel

Ciudad
Pemex
Bunker shuttle

Covenas
30

Small Scale LNG Supply Chain

31