Liquefied natural gas (LNG), dubbed the energy product of the new era, is being used more often in several nations worldwide. What exactly is liquefied natural gas (LNG), as well as its unique qualities and manufacturing procedure? Why is LNG favored in many regions of the world ? Let's examine this subject in more detail in this post with Gas South to comprehend liquefied natural gas (LNG) better.
Liquefied natural gas primarily consists of methane (approximately 95% composition). The process of deep refrigeration (approximately -162oC) is used to liquefy natural gas into LNG, making it easier to store and transfer to the point of use. In various regions of the world, LNG is currently recognized as a clean and environmentally friendly fuel, widely utilized.
LNG - Liquefied Natural Gas
LNG is a colorless and odorless liquid primarily composed of methane (CH4), which accounts for about 95% of its composition. It is lighter than air and disperses. Therefore, LNG is safer in terms of storage and transportation. In the event of an unexpected leak, LNG quickly dissipates without leaving any residue. Additionally, the auto-ignition temperature of LNG is significantly higher than other fuels (around 482 - 632oC), resulting in a lower risk of combustion and explosion.
Liquefied natural gas has a flame temperature of roughly 1880oC when burnt. When compared to gasoline and oil, LNG has the advantage of being able to totally burn without leaving any residue, which makes machinery and equipment safer, reduces wear and tear, necessitates less maintenance, and extends life.
LNG has 2.4 times the capacity of compressed natural gas (CNG) once it has been liquefied. At typical circumstances (1 atm, 15oC), LNG only takes up around 1/600th of the total volume of natural gas. As a result, LNG is thought of as a liquefied natural gas commodity that is easy to store and transport. In comparison to other natural gas products, this is also LNG's most notable benefit.
Liquefied natural gas (LNG) shipping vessels
Natural gas will first be transported to refineries following extraction in order to be cleaned and processed before being converted into liquefied natural gas (LNG). Non-hydrocarbon substances are eliminated during this process, most often Carbon Dioxide and Hydrogen Sulfide. The natural gas will be cooled to a temperature of -162 degrees Celsius to cause it to liquefy once all impurities have been eliminated. Liquefied natural gas (LNG) will then be poured into storage tanks with unique construction to stop leakage.
The production process of liquefied natural gas
Currently, customized LNG ships with tonnages ranging from 170,000m3 to 260,000m3 are the primary way of delivering LNG. Additionally, tank trucks and trains with tonnage ranging from 2500m3 to 12,000m3 can transport LNG across the land. Liquefied natural gas (LNG) will be transformed into gas and delivered directly to consumption areas (residential areas and industrial zones) through a gas pipeline system once it reaches the point of use.
Liquefied natural gas (LNG) prices have been highly volatile in recent years. The selling price of LNG was quite high between 2011 and 2014, at around 17.24 USD/mmBTU (Metric Million British Thermal Unit).
The price of LNG fell precipitously at the start of 2016 as a result of an oversupply; at this time, it was only $4.05/mmBTU, and it rose once more to $9.95/mmBTU at the beginning of 2017 as a result of North America and Europe. There was a record cold snap, therefore a significant LNG supply was required.
Due to a significant decline in demand during the Covid-19 pandemic, LNG prices tended to fall sharply. LNG resumed its increasing trend at $8.21/mmBTU at the beginning of January 2021, and it eventually reached $24.71/mmBTU in early 2022.
Since the start of the war between Russia and Ukraine in February 2022, the price of LNG has increased to an all-time high. During this time, the cost of LNG briefly exceeded $40/mmBTU. With Russia being one of the world's major suppliers of natural gas and the present extended escalation of hostilities, analysts predict that LNG prices will remain high for the foreseeable future.
Russia - one of the world's largest suppliers of liquefied natural gas (LNG)
2. The pros and cons of liquefied natural gas (LNG)
LNG possesses several significant advantages over other fossil fuels, namely:
Environmentally friendly: The use of LNG significantly reduces air emissions, contributing to lower environmental pollution.
Safe storage and transportation: LNG is lighter than air and easily disperses without leaving residue, minimizing the risk of groundwater or soil contamination in the event of leakage or spillage.
Convenient storage and transportation: Instead of compression, LNG is cooled to a liquid state, occupying only about 1/600th of the volume of natural gas at Standard ambient temperature and pressure (STP). This allows for efficient and cost-effective transportation of large quantities over long distances.
Long-term consumption needs: LNG is extracted later compared to some other fuels like coal, gasoline, and oil. This allows LNG to offer a stable and sustainable long-term supply.
Some of the disadvantages of liquefied natural gas (LNG) include:
Production risks: LNG is a very cold liquid, and direct contact can cause freezing of the contact point. Thus, workers handling LNG need to be equipped with proper protective clothing, gloves, masks, etc. Additionally, the processing and handling of LNG require strict adherence to safety protocols to ensure the safety of the workforce.
Price volatility: The cost of LNG fluctuates continuously due to factors such as weather conditions, supply-demand imbalances, geopolitical conflicts, etc. This volatility poses challenges for countries heavily reliant on imported LNG.
Liquefied natural gas (LNG) is recognized as crucial in reducing air pollution, ensuring energy security, and decreasing dependence on other fossil fuels such as coal and petroleum. Consequently, LNG is gradually becoming a potential alternative energy source that receives significant investment and development in many countries, including Vietnam. Due to limited primary energy resources, Vietnam will import LNG to meet its energy demands in the near future. Currently, Gas South has prepared its infrastructure to receive and trade LNG when it is introduced into the Vietnamese market, expected by the end of 2023.
Along with the exceptional benefits already mentioned, LNG also offers excellent economic efficiency and a wide range of useful uses in daily life and industrial production. LNG has a high combustion efficiency when compared to diesel and gasoline, which not only saves fuel but also helps to safeguard the engine, lessen wear, and improve efficiency. LNG is also regarded as a safe fuel because it is non-toxic, dispersible in the air, and has minimal explosion risk. As a result, occurrences involving fire, explosion, and LNG leakage are frequently less dangerous than those involving gasoline and oil.
For both people and the environment, LNG is a very dependable and secure natural gas. It is both the cheapest and cleanest fossil fuel. The globe still has a significant amount of LNG reserves, more than enough to satisfy the long-term consumption requirements of humanity, according to published papers from many credible energy management organizations. For your reference, the following are some of the most widespread uses for LNG in life and business:
Using LNG as a substitute for coal in thermal power stations' combustion chambers.
Using LNG as a combustion fuel for heating and drying systems in homes and food processing facilities.
Using LNG in the transportation sector as a substitute for gasoline and diesel.
Using LNG as a clean energy source for residences or homes in isolated or island locations, etc.
Using LNG as fuel in heavy sectors including ceramics, metallurgy, and brickmaking...
LNG power plant: LNG is used as a replacement for diesel-fueled power generators by converting them to run on natural gas or using dual-fuel systems.
LNG serves as a fuel for various transportation vehicles, including automobiles, ships, and locomotives.
LNG is fuel gas that is used in restaurants, industrial boilers, and commercial in various industries, such as food processing, kilns, drying processes, and more.
Compared to other common fossil fuels like coal, gasoline, and oil, liquefied natural gas (LNG) is a clean energy source with much less emissions. The total hydrocarbon combustion of LNG results in an average 40% reduction in greenhouse gas emissions. To lessen their reliance on coal and petroleum, many industrialized nations throughout the world select LNG as their primary fuel.
By converting from gasoline and diesel to liquefied natural gas, the transportation industry may lower emissions from automobiles by 13% to 21%. Additionally, because of LNG's extremely high combustion efficiency, car owners may significantly reduce their fuel expenses. To successfully minimize emissions and safeguard the environment, LNG is therefore a clean energy source.
The demand for liquefied natural gas (LNG) has grown steadily over the past few years on a global scale.
Following the COP21 climate change conferences, various international financial and environmental groups endorsed the adoption of low-emission energy sources. This marks Vietnam's opportunity to transition from conventional fuels like gasoline, oil, and coal to liquefied natural gas (LNG).
The growing global demand for LNG suggests increased availability, with advancing infrastructure for storage and transportation. Vietnam is poised to access reliable, high-quality LNG at lower costs. The Vietnamese government and energy regulators recognize LNG's significance for long-term economic growth. Power plan VII outlines investments and construction of LNG-fueled thermal power plants between 2025 and 2030, along with the ecological substitution of coal in thermal power projects.
A series of thermal power plants using LNG is invested in and built in Vietnam
Several LNG gas power projects, including the Thi Vai-Nhon Trach LNG gas power plant with a total installed capacity of 1500 MW, the Son My gas power complex with a total installed capacity of 4000 MW, the Ca Na power center with a total installed capacity of 1,500 MW, the Long Son LNG power center with a total installed capacity of 1500 MW, and the Bac Lieu thermal power center with a total installed capacity of 3200 MW, have been planned for implementation. Additionally, several projects to construct thermal power plants utilizing LNG with smaller capacities are being planned to be realized shortly in many additional areas.
Despite being a fossil fuel that is benign to the environment and capable of producing extremely high economic efficiency, LNG. However, in order to fully utilize the potential that LNG offers, high-tech infrastructure must be built with a substantial investment. The future of the electrical business in Vietnam will be significantly hampered by this extremely difficult undertaking.
There are several flaws in the design and funding of LNG gas power development projects as well. Lack of experience that resulted in a lack of direction and a lack of an acceptable legal framework were determined to be the primary causes. Massive investment registration after the movement has occurred in many locations, which has had a detrimental impact on the approval and implementation processes. Many projects have been postponed or never started, adding to expenses and capital expenditures in comparison to the planned budget.
We still need to finish completing the proper legal framework for the growth of LNG gas power in terms of legal elements. The building legislation, the investment law, the environmental law, the bidding law, and most recently the planning law all have different regulations and investment procedures. The PPP legislation (the law on investment under the manner of public-private partnership, effective as of January 1, 2021), which mandates the adoption of Vietnamese law in the interpretation process, has caused great worry among international investors, according to IEEFA. contract and EVN's contractual performance requirements are not covered by any government guarantee.
Pricing: Liquefied natural gas (LNG) prices have fluctuated excessively during the previous ten years. Particularly when the long-term escalation of tensions between Russia and Ukraine has led LNG prices to grow excessively high, leading to considerably higher input material costs, which have a considerable impact on operational efficiency and profit. The financial advantages of LNG power installations.
The market from Ca Mau to Nghe An in particular, and the whole Vietnam market in general, are served by Southern Gas Trading Joint Stock Company (Gas South), a producer and seller of liquefied natural gas (LNG). After more than 23 years of development, Gas South has become a pioneer in the field of providing clean fuel in Vietnam.
Gas South - the largest supplier of liquefied natural gas (LNG) in Vietnam
Coming to Gas South, partners and companies have the option to utilize the least expensive fuel among the three product categories in addition to having access to a reliable and long-term supply of LNG at low pricing. The use of LNG, CNG, and LPG lowers fuel expenses. Customers can speak with Gas South directly through the following channels to ask questions and get a price for liquefied natural gas (LNG):
Southern Gas Trading Joint Stock Company - Gas South
Head office: 4th Floor, PetroVietnam Tower, Le Duan, Ben Nghe Commune, District 1, Ho Chi Minh City
Phone: 028.3910 0108 - 025.3910 0324
Email: lienhe@pgs.com.vn
Hotline: 18006776
An overview of liquefied natural gas (LNG), including its properties and practical uses, may be seen above. The details provided by Gas South in this article should have improved your understanding of this clean, ecologically beneficial fuel. Please get in touch with Gas South immediately via the hotline if you have any questions regarding LNG or leave a remark for free assistance. In the near future, Gas South looks forward to having the confidence and support of our business partners!