LNG Supply Chain Analysis

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LNG supply chain is an extremely expensive and complex business: it requires intensive capital investments. Number cost of investment. In the commercial assessment, cost of all elements of the LNG supply chain is carefully evaluated, because each element ultimately affects overall cost. Each step of the supply chain involves highly specialized equipment. The breakdown in the cost of the value chain is as follows (neglecting natural gas pipeline down to the consumers): • The liquefaction plant is the most expensive unit of the system with almost half of the capital investment being put in here • Transportation cost largely depends on the distance and the other factors. Building project-specific LNG tankers for shipping is expensive. Although,…show more content…
All of these add up to total investment needed between $1.5 and $2.5 billion. (2) This is a variable value, because it depends on the number of factors: type of liquefaction technology, amount of ships needed, shipping distance, market needs. Above mentioned is the project cost of LNG value chain, i.e. capital cost. But the final price of gas supplied to the consumers arises from unit cost contribution of each of those steps. Unit cost is not only driven by capital cost, but also other expenditures like labour, operation and maintenance cost,…show more content…
The measures of a typical carrier are approximately: in length, in width and in water draft. They normally cost about $160 million. [CEE] dopishi LNG has to be stored during transportation and large cryogenic tanks are required for that need; they are, typically, 70 m in diameter and 45 m high and designed to hold more than 100000 m¬¬¬3 of LNG. The current biggest refrigerated tankers specially built for LNG transportation can carry 135000 m3. Although, price of tankers has fallen [naidi], those are still very expensive. That large capacity to be filled and continuous running that manage thermodynamic efficiency to be high and the cost to be minimum are the reasons why it is commercially unattractive to use small offshore reserves to provide smaller markets with LNG. [countries that don’t need]However, small LNG containers are under development, and if complete and successful, smaller amounts of LNG will be carried, like gasoline tankers. Even in the event of success, there are several considerations to be taken into account like storing it for relatively long periods of time with minimal BOG losses, furthermore developing the market is needed. It is not straightforward to calculate and compare which of the shipping schemes is
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