{"id":165,"date":"2023-09-05T06:33:31","date_gmt":"2023-09-05T06:33:31","guid":{"rendered":"https:\/\/proclaimenergy.com\/blog\/?p=165"},"modified":"2023-09-05T07:37:20","modified_gmt":"2023-09-05T07:37:20","slug":"lng-production-processing-transportation-risks","status":"publish","type":"post","link":"https:\/\/proclaimenergy.com\/blog\/index.php\/2023\/09\/05\/lng-production-processing-transportation-risks\/","title":{"rendered":"LNG PRODUCTION, PROCESSING & TRANSPORTATION RISKS"},"content":{"rendered":"\n

LNG is now very popular in industries & home as it is \u201cGreen\u201d and enables setting up power plants in places needing power supply. Nitrogen fertilizers are also made from LNG. Indian home consumption was 5.6 Cub Ft\/Day bn compared to China\u2019s 36 Cub Ft\/Day bn or 85 Cub Ft\/Day bn in the US. With tough Greening in Energy Sector by 2030, there is a big challenge for gas-starving countries like India.

India therefore needs to increase its LNG infrastructure like Ports, Storage and distribution. Of course, we need to compete with other countries for LNG imports at a reasonable price. India plans to increase its nuclear power production 3 times in next 8 years from 7.5 GW to 22.5 GW, which is an extremely tall order, as an alternative to LNG. (yearbook.enerdata.net)

India has LNG terminals at Dahej, Hazira and Mundra in Gujarat, Dhabol in Maharashtra, Kochi in Kerala, Ennore in Tamil Nadu and Dhamra in Orissa. Natural gas is imported at LNG terminals as super-cooled LNG, which is then warmed up in regasification units located at the terminal to regenerate natural gas in its gaseous form. This re-gassified LNG (RLNG) is then supplied through pipelines to Users.

LNG production worldwide is also being geared up, as many companies are gearing up their capex. Between 2021 and 2030, the global capital expenditure (capex) on liquefied natural gas (LNG) liquefication is forecast to amount to 250 billion U.S. dollars (www.statista.com<\/a>)<\/p>\n\n\n\n

There are 7 important risks in LNG Processing (Courtesy: Gencom)<\/p>\n\n\n\n

\"Courtesy:<\/figure>\n\n\n\n
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As you might guess, natural gas is produced many times sub-sea and FLNG Ships play a role here (Floating Liquefied Natural Gas). FLNG\u2019s are similar to FPSO\u2019s, suited for remote & deepwater operations, except FLNG\u2019s are not only larger, but store compressed gas in liquid form (super-cooled). FLNG\u2019s transfer LNG into LNG Vessels for long distance transportation.<\/p>
Now let us see how is the gas handled at User-end. Just like land based regasification plants onshore (Comprehensive & Costlier), FSRU\u2019s are used nowadays (Floating Storage Regasification Unit) for re-gasifying incoming LNG cargoes. FSRU\u2019s are faster to deploy compared to land based stations. FSRU deployment is rapidly expanding (48 in operation world-wide). A FSRU operation, as compared to FLNG, is as follows:\n<\/div>\n<\/div>\n\n\n\n

\u00a0<\/p>\n\n\n\n

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\"LNG_Courtesy:
Courtesy: Croatian Centre<\/code><\/figcaption><\/figure><\/code><\/pre>\n<\/div>\n<\/div>\n\n\n\n
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\"Courtesy:
Courtesy: HKOLNG-EIA<\/figcaption><\/figure><\/code><\/pre>\n<\/div>\n<\/div>\n\n\n\n
The bigger risks in FSRU, apart from higher operating costs, than a land based plant are linked to Ship-to-Ship transfers and Storage in a floating unit, exposed to heavy weather.

LNG itself is riskier compared to, say, gasoline as it is highly explosing and flammable. Its flames propagate rapidly and burn a large mass approximately doubles to gasoline\/other oils (Thanks: Marine Insight)

As against just insuring just an FSRU (this itself is mammoth!), as an Insurance Practitioner, you need to insure the FRSU terminal, consisting of the FRSU, its operations, pipelines, jetties in a comprehensive style by making appropriate presentation to Insurers, using Brokers.

India will very soon have her first FSRU terminals in Jaigarh (Maharashtra) & Jafrabad (Gujarat) <\/p>\n","protected":false},"excerpt":{"rendered":"
LNG is now very popular in industries & home as it is \u201cGreen\u201d and enables setting up power plants in places needing power supply. Nitrogen fertilizers are also made from LNG. Indian home consumption was 5.6 Cub Ft\/Day bn compared to China\u2019s 36 Cub Ft\/Day bn or 85 Cub Ft\/Day bn in the US. With […]<\/p>\n","protected":false},"author":2,"featured_media":166,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[14],"class_list":["post-165","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marine-insurance","tag-lng-production-processing-transportation-risks"],"_links":{"self":[{"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=165"}],"version-history":[{"count":8,"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/165\/revisions"}],"predecessor-version":[{"id":194,"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/165\/revisions\/194"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/media\/166"}],"wp:attachment":[{"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/proclaimenergy.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}