The future is Gas

It’s the most environmentally friendly fossil fuel – liquefied natural gas (LNG). Used in homes as well as in industries, LNG is the future

Global economic growth has become dependant on the clean-burning LNG

Setting sail in January 1959, a converted World War II freighter traversed the Atlantic Ocean, fully laden with liquefied natural gas (LNG). Billed as the world’s first LNG tanker, the Methane Pioneer would carry seven additional loads from Louisiana, United States to Canvey Island, United Kingdom, chartering a course for all future natural gas transports.

In what is today a multi-billion dollar industry, global economic growth has become dependant on the clean-burning fuel. Used for heating and cooking in homes, as well as the manufacture of fabrics, glass, steel, plastics and paint, natural gas maintains a reputation for burning cleaner than other fossil fuels, such as oil and coal, and produces less carbon dioxide per unit energy released.

LNG is the condensed form of natural gas. In fact, it is principally used for transporting natural gas to markets. More than 200 ships carry over 150 million tonnes of gas each year.

While it takes up about 1/600th the volume of natural gas in a normal state, LNG proves far more efficient for transporting natural gas long distances. Often termed the ‘floating pipeline’, LNG’s supply industry has logged 50,000 plus voyages with no major accidents.

Once ashore, LNG is re-gasified and distributed as pipeline natural gas. It remains odourless, colourless, non-corrosive, and non-toxic, and when vapourised, burns only in concentrations of five to 15 per cent when mixed with air. Contrary to popular belief, neither LNG, nor its vapour, can explode in an unconfined environment.

“There are statements likening LNG ships to floating bombs,” says Bill Wayne, General Manager of Society of International Gas Tanker and Terminal Operators (SIGTTO).

Left: Bill Wayne, General Manager, Society of International Gas Tanker and Terminal Operators (SIGTTO) Right: A LNG tanker

“This is nonsense because, while clearly flammable, the rate of release of energy, in the event of ignition of a vapour cloud from spilled LNG in order of magnitude, is lower than that for high explosives (TNT) or nuclear bombs. The blast potential, hence damage, remains a function of rate of release of energy,” says Wayne.

“There is an issue behind all this because the popular misconceptions are frequently raised in planning processes and not all planners know better.”

Attending an LNG conference, one cannot help but notice the theme that seems to permeate throughout the entire logistics industry: staffing shortages. In the case of LNG, the unprecedented global demand has been accompanied by a drastic increase in ship construction, subsequently creating a need for more qualified personnel.

“Perhaps the biggest concern of all is will there be enough skilled manpower to handle the booming future ahead,” says Nigel Carden, Deputy Chairman, Thomas Miller P&I.

“The future poses new problems, but we see no reason to suspect those manpower problems can’t be resolved,” says Carden.

“The simple answer is to train, train and train,” says Wayne, who also thinks the foreseeable shortage will be overcome. Though as time progresses, new concerns will inevitably arise.

“There are further issues, like how to take a person who has completed training and develop them into a fully competent officer. There has to be an element of experience which only comes with time on board. Having trained and developed a fully competent ship’s officer, there are then issues around retention which need addressing,” he adds.

In 2007, the world production of LNG stood at about 170 million tonnes. When Qatar completes their current processing upgrade, the Middle East will be contributing around 50 per cent of the world’s demand. A staggering figure. This does not account for Egypt, who is currently supplying 12 million tonnes, and has a further five million tonne production capacity planned, as well as Yemen who will begin turning out 6.8 million tonnes by 2009. As demand grows, so too must supply and the Middle East is ready to position itself accordingly on the global stage. How important, then, is the region to the current and future success of LNG supply?

“Absolutely essential,” says Wayne. “For the future health of the industry, it is vital that all the existing capacity continues to operate reliably and the new capacity comes smoothly and on time.”

So just how regulated is the LNG industry? Not very, say most insiders, as regulation remains pretty minimal. Could the global trade stand to use more?

“The LNG industry is relatively lightly regulated – in a way, this is a measure of its success as it is based on a record of safe and reliable operation,” says Wayne.

“Perhaps one area worthy of looking at is that relating to treatment of seafarers in ports and by port states. There is a tendency towards criminalisation of response to issues which should be resolved by civil law.”

One such example would be the imprisonment of the master of the VLCC Hebei Spirit in December. The oil tanker, inadvertently struck by a barge off the coast of South Korea, subsequently spilled 11,000 tonnes of her crude in the Pacific. As it was later acknowledged, the fault was not of the tanker, or the master. Wayne feels the criminal-civil approach to the problem is worthy of international attention and perhaps regulation.

“Another aspect is the prevention of seafarers going ashore for R and R (rest and relaxation), usually the International Ship and Port Facility Security (ISPS) code is used as an excuse. These issues also link back into the problem of staff shortages.”

How it works

The liquefaction of natural gas involves removing components such as dust, helium, water and heavy hydrocarbons, which can cause difficulty downstream. It is then condensed into a liquid at close to atmospheric pressure (maximum transport pressure set around 25 kPa (3.6psi) by cooling it to approximately −163 degrees Celsius (−260 degrees Fahrenheit)). The reduction in volume makes it much more cost-efficient to transport fuel over long distances where pipelines do not exist. Where moving natural gas by pipelines is not possible or economical, LNG can be transported by specially designed cryogenic sea vessels or cryogenic road tankers.

Source: SIGTTO
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