Unlocking a new power generation

By Sean Yang, South East Asia Regional Sales Manager, Trelleborg Oil and Marine

Mini and small-scale Liquefied Natural Gas (LNG) shipping is quietly revolutionizing clean power generation in the developing world, with the potential to provide hundreds of thousands of people in emerging nations and islands with access to a reliable source of energy. Typically, these regions lack the necessary infrastructure for dependable power generation leading to regular shortages from the grid with some off the grid entirely.

For certain regions, mini or small-scale LNG production projects are the only economically viable solution to supply a sufficient and reliable source of power to hard to reach or isolated customers in often remote locations – particularly where connection to a pipeline grid or supply from large-scale LNG facility is not logistically feasible or economically justifiable.

In July, 2016, a report by Transparency Market Research revealed that the small-scale LNG market will rise twofold over the period between 2014 and 2022, from nearly 42 million metric tonnes per annum (MMTPA) in 2013, to over 102 MMTPA in 2022.

The establishment of the mini and small-scale LNG market creates the opportunity to develop more “turnkey” projects where infrastructure becomes more standardized and modular, allowing project delivery to be accelerated significantly.

Key markets that could benefit significantly from the development of mini and small-scale LNG power generation plants include Malaysia, the Philippines, Indonesia, the Caribbean, India and Greece. The Indonesian government, for example, has stated its intention to achieve 100% ‘electrification’ by 2019 for its entire population of 260 million people. This will require 32 power plants to be built, often in remote areas, representing 35,000 megawatts of additional power.

The Philippines too is looking to capitalize on the economic opportunities brought about by small and mini-scale LNG solutions that offer a unique and practical solution to the challenge of providing 7,000 islands and over 100 million inhabitants with reliable power.

However, in today’s challenging global economy, many mini-scale power generation projects are often stalled before they can progress beyond the planning stages, due to the significant cost of building not just the plant itself but also the complex transfer infrastructure. With an expansive “payback period” that is deemed to be far too long, projects are being shelved before they can even get off the ground.

As demand for mini and small scale power generation grows, so will the demand for the technology that can deliver rapid scale and growth. The development of Cryoline hose technology by Trelleborg, that enables the safe transfer of gas in its liquid form, is perhaps one of the most significant technologies for mini and small scale gas development; its benefits perfectly suit expansion in remote, developing regions where larger power generation plants are not well suited.

The result reflects an, as yet, quiet revolution in energy transfer. A report by Mordor Intelligence, published August 2016, entitled ‘Global Cryogenic Equipment Market – Growth, Trends and Forecasts (2016 – 2021)’, estimated that the global cryogenic equipment market was worth US$15.3 billion in 2015 and is projected to reach US$23.5 billion by 2021, at a growth rate of 7.4% per annum during the forecast period.

Trelleborg’s research and development facilities for hoses in Clermont-Ferrand, France, developed game-changing Cryoline handling solutions that allow quick installation and greatly reduced capital expenditure, often delivering savings of more than US$100 million in some cases. Cryoline hose technology can negate the need for fixed onshore infrastructures; a concrete platform onshore combined with Cryoline hose transfer solutions offers an alternative that can be up to 80% more cost effective for locations where fixed onshore infrastructure would be prohibitive.

Cryoline hoses can be utilised throughout the LNG supply chain, for: production to storage (offshore and onshore), storage to transportation and delivery to an important terminal, or directly to regasification plants for power plant use. Specifically designed to withstand fatigue in even the most hazardous conditions, the hoses are operable in all sea states, and typically require only 12-inch to 16-inch hoses, enabling them to cope with an LNG transfer flowrate of up to 10,000 cu m/h.

Each cryogenic floating hose is equipped with an integrated monitoring system that utilizes innovative technology to detect even the slightest leak that may occur in the hose structure during loading and offloading. In addition, the hoses can be extended to up to 600 meters away from the shore, to ensure safety is assured in almost all conditions.

As demand for LNG continues to open up new frontier regions, fresh, flexible and innovative technologies are needed to keep apace to make small and mini-scale solutions economically viable, cost effective and practical. New innovation in LNG loading and unloading does just that, especially in remote locations.