8. Discussion
The gas industry has entered an exciting phase of rapid growth from all supply chain and technology perspectives. LNG is clearly destined to play a key role in future global energy development by providing the sustainable energy supplies and services needed for social and economic development. For such developments to progress, the construction of large-scale inter-regional natural gas supply networks (pipeline and LNG) is required across the globe. Natural gas is composed essentially of methane, which can be obtained also through anaerobic fermentation of different organic products yielding biogas (60% methane). The role of methane as a fuel has shown increasing importance due to the growth in digester construction all over the world, and especially in developing countries. Further, burning of one molecule of methane (CH4) in presence of oxygen releases one molecule CO2 and two molecules of H2O and 890 kJ/mol[78] heat is liberated out as represented below:
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Therefore, methane’s relative abundance and clean burning process makes it a very attractive fuel. However, it is a gas and not liquid or solid, methane is difficult to transport from the areas that produce it to the areas that consume it. Converting methane to forms that are more easily transported, such as LNG and methanol, is an active area of research. Hence, demand for LNG as a clean fuel is increasing and LNG is often considered the best form of energy that will be the bridging fuel to a sustainable energy system, sometime after 2050 [79].
According to Marcogaz [80] the natural gas industry is in a good position regarding sustainability compared with other fossil fuels, as it has a good track record of health & safety, labor standards, waste minimization, GHG reductions and affordable prices.
Moreover, [81] the combination of higher natural gas prices, rising demand for natural gas and lower LNG production costs (represented in Fig. 6) are setting the stage for a dramatic increase in LNG trade. While LNG already enjoys very favorable economics over petroleum and other transportation fuels—with fuel cost savings typically reported in the 30% range – the continued high price of petroleum and growing supply/low price of natural gas is expected to further decouple these traditionally linked energy markets and provide cost savings to fuel hungry end users.
Fig. 6.
Schematic representation of reducing unit cost of LNG project.
Source: IEA.
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Where there exists an LNG production plant, peak shaving or gas processing facility, loading facility or receiving terminal, or even a natural gas pipeline, LNG vehicle fuel will offer the lowest cost fuel option for heavy-duty transportation in the immediate region. For example, where there is an LNG receiving terminal in an industrial port complex, LNG vehicle fuel can also be made available for use in local port delivery trucks, off-road yard tractors, locomotives, ferries and commercial harbor craft, and for cold-ironing large ocean going vessels [82].
Thus, LNG cost reduction and increasing supplies of LNG, accompanied by increased flexibility in LNG trade are adding to the security of gas supply [83]. The software program, developed by Miana et al. [84] for the analysis of the LNG ageing process during ship transportation can help the terminal operators to manage re-gasification plants in a safer and more efficient manner.
The current level of global trade in LNG is anticipated to nearly double by 2020 and, potentially, triple by 2030 and beyond, so the market for liquefied natural gas vehicles (L-NGVs) should strengthen concurrently as more countries incorporate LNG into their energy strategies [85] and [86]. Moreover, LNG has a safe history of transportation by LNG trains. Even if it escapes it will evaporate and not pollute waterways and oceans like oil can [87]. Using LNG will produce less greenhouse gases than using coal for electricity generation. Therefore, a switch from oil based to natural gas (LNG) based fuel chains may be a good way to reduce both the carbon emissions of current fuel chain and to keep a high degree of flexibility regarding future developments. Further, growth of the LNG is required because of the energy shortage in certain areas, and the problem of environmental pollution. Improving technology leading to even greater safety and lower relative costs could enable this need to be satisfied.
The use of LNG is however, quite a different area of technology, as briefly discussed above. Generally, it will use a combination of known, existing technology, and new technology. The greatest challenges for the use of LNG are to secure the ready acceptance by the public and the production of safe systems to generate, store, distribute and consume. So to use LNG as an alternate source of energy requires modification in existing technology [88], development of more infrastructure and public awareness about this fuel. Hence, emphasis should also be laid on infrastructure development and the use of LNG in heavy vehicles. The use of LNG should be subsidized taking into consideration the environmental advantages of LNG over oil and coal.
The growing estimates on LNG suggest that accessible supplies of this least carbon-intensive fossil fuel may be far more abundant than previously assumed. This unexpected development creates opportunities for deploying LNG in a variety of sectors-including power generation, industry and transportation – to help displace oil and coal, thereby reducing greenhouse gas emissions and improving air quality. Beyond providing a cleaner, market ready alternative to oil and coal, LNG can facilitate the systematic changes that will underpin the development of a more energy-efficient and renewable energy based economy.