34
LNG
INDUSTRY
MARCH
2016
LNG terminals
With this objective in mind, many solutions have been
recommended within the region over the past decade. In
addition to the growth of renewables, increased import of
LNG into the Caribbean has been suggested as a way to help
control energy costs and decrease greenhouse gas (GHG)
emissions. However, with a handful of exceptions, such as
the EcoEléctrica terminal in Puerto Rico and the AES terminal
in the Dominican Republic, most Caribbean islands can not
justify a traditionally sized LNG import terminal both from a
scale and CAPEX perspective. A potential solution proposed
to allow for small vessel loading and export has been to
build or modify terminals that can be purpose-built for this
market. While this seems interesting in theory, the cost of
LNG production at these facilities is often high and perhaps
not commercially competitive with cargoes sourced out of
the global LNG supply glut.
ISO tank
containers
Another technology
that has emerged as
a bridging solution
when terminals either
do not exist or will not
accommodate the needs
of small scale customers
is based upon the
transport of LNG in ISO
tank containers. These
small LNG tanks can be
loaded at a terminal in a
similar fashion to the way
LNG trucks are loaded,
transported to a port,
and shipped to various
markets. Fully loaded,
ISOs hold between 800
and 1000 million Btu
of LNG. Although the
Caribbean islands are
considered small by
some standards, shipping
a multitude of ISOs
creates a challenging,
costly and high-risk logistics scenario. The smaller scale of
these projects can result in escalated transportation costs
and losses of efficiency. In most cases, the traditional LNG
model almost always wins, especially when travelling
significant distances. There is a role for ISO containers to
play in small scale LNG, but perhaps it is not as a competitor
to bulk LNG deliveries to power plants.
Floating storage and
regasification units (FSRUs)
The theme of needing to make LNG ‘smaller’ to facilitate
lesser markets also trickles down into the size of the
vessels. The vessel must be aptly sized for the market
as customers will not pay for volumes they do not use.
However, the pricing indications to build smaller sized
LNG carriers appear extremely escalated (in the tens or
even hundreds of millions). It will be difficult to enable this
market with numbers like this, and it can deter regional
energy consumers from the accessibility of LNG.
Over a decade ago, Excelerate Energy saw the need for
a cost-efficient, fast-track solution for the importation of
LNG and introduced the concept of a floating storage and
regasification unit (FSRU). FSRUs act, in many aspects,
similarly to land-based terminals. In addition to transporting
LNG, FSRUs have the onboard capability to vaporise LNG
and deliver natural gas through specially designed offshore
and near-shore receiving facilities. FSRUs typically unload
volume in three ways: as a liquid at a conventional LNG
receiving terminal; as a gas through the FSRU’s connection
with a subsea buoy in the hull of the ship; and as a gas
through a high pressure gas manifold located forward of the
vessel’s LNG loading arms. FSRUs can deliver regasified
LNG at pipeline pressure at flowrates ranging from
50 to 800 million ft
3
/d, providing quick and convenient
access to gas supplies. Although the Caribbean islands often
Figure 1.
The Eastern Caribbean islands.
Figure 2.
Excelerate Energy has transferred over
90.5 million m
3
of LNG.
