1. PGC-D3 – Small Scale LNG Definition and Technology Subgroup Insight on Small Scale LNG Logistics
14th - 16th May 2014
Osaka, Japan

2. What is the goal of logistics analysis?
Permits the flow of (liquefied) gas through the chain/network whilst minimizing production downtime and ensuring timely deliveries with a fit-for-purpose transport fleet.
Support projects by defining minimum CAPEX requirement for design phase as LNG storage and loading facilities: A thorough analysis of required storage and loading configuration, transport fleet and customer profile provides guidance on the specification of the export facilities that balances investment against expected supply network performance.

3. Types of Small Scale LNG Supply Network
Regas/import
Terminal
LNG Carrier
Liquefaction & Storage
End users/
Power plant
Higher complexity: Manage coexistence of existing large scale and add on the ``small scale branch’’
Also, coexistence of different distribution methods (trains, carriers and trucks) to sort out the logistics.
In addition the project and business leaders
and engineers needed to be able to understand how various production ramp ups and evolutionary
changes in the supply chain will impact the logistics facilities.
When starting from an existing infrastructure (common in current SS cases) can force to use suboptimal design, or require the CAPEX to improve infrastructure
Scheduling is more challenging where more elements influence each other (interdependent events, e.g. large carrier delayed, small barge waiting, same harbor to operate)
Small Scale Liquefaction
& Storage
LNG Transport
(Vessels, Trucks, Trains)
Small Terminal

4. Example: challenges at import/regas terminal
LNG movement through the tank (inflow and outflow), requiring more frequent refill
Increased berth utilisation due to extra import/export, may require additional berth(s)
Existing berth configuration might not be compatible with small scale vessels
More complex scheduling due to interdependent loading and offloading activities
Existing tank capacity can be challenging/insufficient sufficient for new operations
Existing pumping capacity might be a bottleneck for fast loading of SS vessels/trucks
…a dedicated small scale berth might be required

5. Input/Output of a logistics analysis
Supply
Storage
Loading Facility
Transport
(vessel/truck)
Demand
Supply
Storage
Loading
Transport
Demand
Supply profile
Seasonality
Dead stock
Max/Min operating
levels
Ullage
Sail/Drive in&out
Berthing/Docking
LNG transfer rate
Max utilization
Ship/truck/rail/…
Distance
Volume
Max utilisation
Speed
BOG mngmnt
P(t) , T(t)
Number of
customers
Port activities
Quality req.
Size required
Nr. Of stations needed
Nr. Of liftings needed
Utilization
Fleet size
INPUT
OUTPUT
Input and Output might vary depending on the process specifics
The analysis could be made for the conversion of an existing facility, or design of a new one

6. Input/Output of a logistics analysis
Supply
Storage
Loading Facility
Transport
(vessel/truck)
Demand
Supply
Storage
Loading
Transport
Demand
Supply profile
Seasonality
Dead stock
Max/Min operating
levels
Ullage
Sail/Drive in&out
Berthing/Docking
LNG transfer rate
Max utilization
Ship/truck/rail/…
Distance
Volume
Max utilisation
Speed
BOG mngmnt
P(t) , T(t)
Number of
customers
Port activities
Quality req.
Size required
Nr. Of stations needed
Nr. Of liftings needed
Utilization
Fleet size
Extreme Weather Events
Planned and unplanned maintenance
Port constraints like tidal and day light periods
Traffic, road incidents
Supply, Demand fluctuations
INPUT
OUTPUT

7. Small Scale Liquefaction
Example
Small LNG Carrier
Small Scale Liquefaction
Small Terminal
INPUT
OUTPUT
LNG plant
Supply
0.05, 0.1, 0.3, 0.5, 1
 mtpa
Seasonality no
Storage
Dead stock
1000 m3
Minimum operating level 5%
Maximum operating level
95%
Ullage 2
days
Loading port
Sail in/out 1 hr
Berthing
2, 5
LNG transfer rate
200, 1000
m3/hr
Maximum berth utilization
70%
Carriers
Size
1000, 10000
Average speed 9
knots
Maximum ship utilization
85%
Customers
Number of customers
Demand
Equal to production
Distance
Variable
Port activities
Impact of capacity, distance and vessel size on fleet needed?
How many berths are needed?
What is the % berth utilisation?
What is the storage tank size needed?
How many liftings per year?
Ullage: storage to avoid future production losses to avoid tank tops
A carrier of 1000 m3 may be too small for sea going barges. Generally I have seen sea going LNG vessels has a storage capacity more than 7500 m3. Lesser than 7500 m3 may be more suitable for canals and rivers.
Due to lack of proper small scale market, a small carrier may be used to carry different products. Hence the likelihood of a small carrier to go for inerting and cooldown is more than dedicate large size LNG vessels. The factor should be accounted in the fleet sizing and berth utilization. The inerting and cooldown process may take approximately 24 hrs of extra time at the LNG loading berth.
The loading/unloading rate highly depends on the type of cargo and can be as high as 5,000 m3/hr. Generally I have seen loading rate 2000 m3/hr in small carriers.
A small carrier may have the guaranteed speed of laden voyage as high as 17 knots.
65% limit is used for berth utilization for conventional LNG cargoes. The berth utilization depends on the maintenance required at berth and the schedule arrival window of vessels. In a small scale market, if the voyage turnaround time is low then schedule arrival window can be reduced which would allow higher berth utilization. There is no general rule of schedule arrival window duration and the judgment should be taken on case by case basis. I have seen STASCO recommending 18 hrs of schedule arrival window for small LNG carriers

8. Fleet Size Required Carrier Size 1000 m3 Carrier Size 10000 m3
Economics and constraints on the customer side might dictate the viable option
Many small vessels…maybe better one larger one? (Unit freight Cost)
Carrier Size
10000 m3

9. Fleet Size Required Carrier Size 1000 m3 Carrier Size 10000 m3
Economics and constraints on the customer side might dictate the viable option
Many small vessels…maybe better one larger one? (Unit freight Cost)
One ship in a fleet is not a viable option for a regular demand. There is a possibility that due to an unexpected failure carrier may be out of service for a significant period of time resulting in short fall of supply.
Carrier Size
10000 m3

10. Storage and Berth Required
Carrier Size: 1,000 m3
0.05 mtpa
0.1 mtpa
0.3 mtpa
0.5 mtpa
Berths [#] 1 2 3
Liftings [#/yr]
112
224
674
1123
Berth utilization [%]
15%
31%
46%
51%
Required tank size [m3]
2,820
3,419
5,812
8,205
Carrier Size 10,000 m3
0.1 mtpa
0.3 mtpa
0.5 mtpa
1.0 mtpa
Berths [#] 1
Liftings [#/yr] 22 67
112
224
Berth utilization [%] 6%
18%
31%
62%
Required tank size [m3]
13,254
15,316
17,379
22,535
Storage tank size is highly sensitive to Ullage and carrier size. STASCO is uncomfortable in operating with less than 60 hrs of operational Ullage for large size LNG cargoes. Typically we try to achieve 48 hrs of operational Ullage in a high level logistics design but can be significantly lower depending on the customer location and shipping availability. Storage tank of few existing small scale LNG plant is shown below –
Plant
Production
LNG Storage
Praxair LNG
0.13 mtpa
6,000 m3 (only truck loading)
Ansai LNG
0.40 mtpa
30,000
Ningxia Hanas LNG
0.80 mtpa
50,000
Source: Gas Matters

11. Conclusions and Further Work
The Small Scale LNG ``network’’ poses new logistics challenges
When SS LNG is added to an existing conventional LNG chain, a complex analysis is needed because of the interdependency and constraints
High level analysis of the SS LNG chain. What is the window of economic viability?
Input on technical barriers: available storage/vessel sizing, compatibility of various elements along the chain (pressure, flanges, else?)
What would be the results with trains/trucks?
What when more distribution methods coexists?