Small-scale LNG projects enter the us market
- Aug 22, 2019-
Large-scale liquefied natural gas (LNG) liquefaction and export facilities are now reportedly helping to write the story of global demand for us gas reserves.But there's a new demand factor for the gas: small-scale facilities to bring LNG to a little-tapped market and find new USES for the clean fuel.
Small-scale LNG plants, typically with an annual capacity of less than 1 million tons, are springing up across the United States to serve niche markets such as IMO fuel for ocean-going ships, peak load regulation and the growing export markets of nearby Caribbean countries.
These small-scale LNG facilities can be located and built faster and cheaper than world class large-scale facilities.Construction costs are in the millions of dollars rather than the billions, and construction takes months rather than years.
Smaller LNG plants can be built almost anywhere, so they can be located near natural gas production or markets.LNG can be transported by truck or ship.The timing also seems good, with the trump administration seeking a new rule that would allow long-distance shipments of LNG by rail.