This bibliography was generated on cite this for me on saturday, august 8, 2015. Prior to liquefaction, certain unwanted components, such as dust, acid gases, helium, water, and heavy hydrocarbons, are removed as they can cause difficulty downstream. Pdf economics of global lng trading based on hybrid pv. Pipeline economics gaille energy blog issue 66 this is a guest blog authored by ankur shah, one of my students at rice universitys graduate school of business. An lng receiving terminal comprises lng storage tanks and regasification facilities that convert lng back to its gaseous state by the application of heat, also known as vapourisation. Royal dutch shell says the world could be grappling with a shortage of liquefied natural gas within a. Those components, shown in figure 8, will be discussed at the outset and then we will turn to project economics and the growth of the lng market. Economics of the lng value chain and corporate strategies an empirical analysis of the determinants of vertical integration sophia ruester1 and anne neumann paper presented at the 10th annual isnie conference september 2124, 2006 boulder, colorado usa abstract this paper analyzes corporate strategies in the emerging global market for liquefied natural gas lng.
In this manner each entity in an lng value chain plays a specific role for dm over the overall project. Introduction traditional energy vectors such as oil and coal have been presenting a. Lng value chain risks and opportunities for gas market. Bv 2009 about lng liquefied natural gas is natural gas, primarily composed of methane, which has been converted to liquid form for ease of storage and transport. Use of these quite simple models combined with modelbased optimization offers and interesting and feasible approach to optimize production in case of various events that require readjustment of the production planning. Multinational and national oil companies have traditionally been responsible for financing and running largescale and technically complex lng ventures, while now. Lng exports are expected to lead to a rebalancing of u. A recentlycompleted study by pace global a siemens company under sponsorship from the center for lng clng provides valuable insights in comparing various configurations of the lng value chain to coal when the two primary energy forms compete in supplying the power. Changes along the lng value chain new players with new business models have entered all parts of the lng value chain, from liquefaction to downstream. The book also addresses lng import projects for local lng sales as an alternative to countrytocountry pipelines. Lng fuel provides potential economic and environmental benefits seeking low c. The opinions expressed in the book by pawel turowski are his personal views and not the official stance of. The range of expenditure figures both capital and operating obtained from the literature is synchronized into a unit energy basis across the value chain liquefaction, shipping and regasification.
It allows users to assess the different lng structures that. Economics of the lng value chain and corporate strategies. Economic and technological analysis of commercial lng. Uk shipment of lng demonstrated that large quantities of lng could be transported safely across the ocean, opening the door for what would become the global lng industry. We discuss the decisions that need to be made and the lenses through which to. The economic viability of a liquefied natural gas lng project is evaluated using industrywide data. It introduces the reader to lng and briefly touches on many of the topics relating to the lng industry. Kitimat lng has established first nations partnerships that are unique in the canadian energy industry and has received strong support from local indigenous communities across the entire value chain. Workshop program understanding the lng value chain. Safeguard systems offers a third layer of protection. The logistics chain, which incorporates the large, medium, and smallscale chains can be very complex.
Purpose of the upstream and lng model this model has been developed for training purposes. The lng value chain, in its traditional form, includes liquefaction, marine transport, regasification, and natural gas. From wellhead to wire module 1 natural gas and world energy trends module 2 overview of the lng value chain module 3 main lng technologies and pros and cons module 4 impact of equipment selection on plant e. Discover the economics, technology, policyregulatory issues and business strategies and trends that affect these value chains. The original book and the broader global lng fundamentals handbooks can both also be found online using the below link. David is a research fellow for the oies, since 2007, focusing on lng and lnggas interface and gas and lng strategy along the value chain. Life cycle assessment of liquefied natural gas lng for the 20122015 igu triennium. Natural gas prices, lng transport costs, and the dynamics of lng imports, energy economics, 33, 217226. The handbook of liquefied natural gas is a timely book as the industry is currently developing new large sources of supply and the technologies have evolved in recent years to enable offshore infrastructure to develop and handle resources in more remote and harsher environments.
With growing demand for liquefied natural gas lng and concerns about climate change, this paper introduces a new value chain design for lng and a respective business case taking into account. Additionally, there is also a drive to lower the cost of natural gas liquefaction and improve the value of the lng regasification plant. Use of the upstream and lng model for different parties. Global economic development has accelerated the demand for energy prod ucts. We have strived to establish an lng value chain that encompasses procurement, production and sales. Carbon price forecasting with a novel hybrid arima. We discuss project structure, government roles, capacity building, lng export project development, environment, social impact, and safety. We remove risk and complexity from a projects critical path, ensuring ontime and onbudget execution.
Lng supply chains and the development of lng as a shipping. It is, therefore, in the end users interest that this value chain is as cost efficient as possible. Advice on the opportunity to set up an action plan for the. Consequently we examine the industry value chain national petroleum value system, and consider the contribution of individual firms to social value creation. Kitimat lng has a benefits agreement with the haisla nation for the lng plant that is located on haisla nation reserve land, and an agreement with.
Pdf economics of global lng trading based on hybrid pvwind. He is an experienced commercial manager with handson experience of developing and closing commercial gas transactions as well as developing business strategy. Lng takes up about 1600th the volume of natural gas. Lng at the crossroads identifying key drivers and questions. Section 2 describes the petroleum sector value chain and briefly. The paper examines how environmental regulations have initiated change, which in turn has incentivised the construction of the infrastructure that is vital to lng as a bunker fuel. Funded by understanding natural gas and lng options. It is the only book of its kind, covering the many aspects of the.
In the lng supply chain, costs are incurred in four main links. The term cryogenic means low temperature, generally below 100 o f. The share of lng in import demand is likely to rise significantly at the eu level. Overview there are 14 approved lng export facilities in the us 8 of which are currently under construction. Participants will discover the economics, technology, policyregulatory issues and business strategies and trends that affect these value chains. Dec 10, 2019 kitimat lng has established first nations partnerships that are unique in the canadian energy industry and has received strong support from local indigenous communities across the entire value chain. We will continue to accumulate the technology and knowhow of lng and natural gas, improve. Module 2 overview of the lng value chain module 3 main lng technologies and pros and cons module 4 impact of equipment selection on plant ef. Lng safety and security 6 secondary containment ensures that if leaks or spills occur at the onshore lng facility, the lng can be fully contained and isolated from the public.
Lng is a clear liquid, with a density of about 45% the density of water. It introduces the reader to lng and briefly touches on many of. Center for energy economics, begutaustin, 2015 your bibliography. This means the whole lng supply chain, from the well heads, gas treatment, liquefaction. Unlocking the supply chain for lng project success2. They may prove to be inaccurate in the future, and are subject to a number of risk factors that could lead to a. Lng technology and historical development value chain components fuel, losses, efficiency, scale and other financial features safety and environmental considerations typical regulatory factors overview of lng supply chain economics. This briefing paper is the first in a series of articles that describe the liquefied natural gas lng industry and the growing role lng may play in the u. An overview on liquefied natural gas lng, its properties. The lng supply chain consists of exploration, extraction, liquefaction, transportation, storage and. Course gerlge liquefied natural gas economics ifp training. Introduction to lng and various types of lng storage tanks introduction lng is a cryogenic liquid.
Shaking up the lng scene 3 dramatic changes in the global liquified natural gas lng markets are already visible through market dynamics and stakeholders behavior, but many other signs point to much more significant changes to come a great reconfiguration, which could transform the way lng is traded and have a far. Although all stages of the industry value chain will be discussed, there is a deliberate emphasis on upstream operations. For print and online subscriptions each user receives an individual printed copy of the lng journal in the post. User may print a copy of the pdf edition for personal use only the lng journal magazine is published 10 times per year with occasional special editions. The lng value chain engineering bibliographies cite this. Lcas have been developed in recent years covering the general lng value chain. Chair of energy economics and public sector management. Lng consumption is driven by global growth in europe and southeast asia. Lng markets in transition the great reconfiguration pdf. Supply chain optimization for the liquefied natural gas business. It models the gas value chain from the upstream project to the use of gas under the form of lpg, lng or as feedstock for local industrial or power generation uses. Lng exports would have 12% to 28% market share of new lng contract volumes in 2025 and market share of 8% to 25% in 2035.
Factors affecting economic viability global trends in gas chain economics and. Royal dutch shell says the world could be grappling with a shortage of liquefied natural gas within a decade due to underinvestment in new projects. The lng value chain, from production to market, is a substantial integrated undertaking because all of its components must exist and be aligned both legally and commercially for a project to be viable. Whether a country is a potential exporter or importer of natural gas, this handbook will provide a framework to evaluate natural gas and lng projects critical to monetizing many of the large natural gas fields recently discovered while matching resources with demand from regional and global markets. Hildas extensive experience includes operational excellence, process transformation, procurement, change management and financial process redesign. Dynamic optimization of the lng value chain sciencedirect. Manual for the open fiscal lng model columbia university. Wartsilas extensive expertise across the entire lng value chain enables it to bundle together solutions that provide efficient energy production from gas. Corporate strategies along the lng value added chain tu dresden.
Economics of the lng value chain and corporate strategies an. This papers first edition was published in january 2003. May 31, 20 the lng value chain comprises a complex set of activities, all of which are capital intensive and require specialized knowledge in order to execute successfully. The course is designed for new entrants to the lng business or for those with some knowledge of the business wishing to broaden their understanding of the complete value chain. Seven key factors are expected to drive how the lng industry will grow, including. Economics of the lng value chain and corporate strategies an empirical analysis of the determinants of vertical integration sophia ruster1 and anne neumann paper to be presented at the 26th usaee international conference september 2427, 2006, ann arbor, michigan, u. This training is beneficial to professionals from the oil, gas or power industries or from the banking, insurance, and consulting sectors who need to understand lng activities and their economic stakes.
The lng value chain comprises a complex set of activities, all of which are capital intensive and require specialized knowledge in order to execute successfully. Lng economic, market and financial perspective european. The economics of lng supply based on hybrid pvwind power plants mahdi fasihi and christian breyer neocarbon energy 2nd researchers seminar lappeenranta, 16. Lng value chain value propositions golng main page. Module 2 overview of the lng value chain module 3 main lng technologies and pros and cons module 4 impact of equipment selection on plant e. There are several means of optimising the lng logistics chain in order to reduce the cost of lng or gas at the final destination. The original book, understanding natural gas and lng options, and other supplemental. This training provides an overview of the economic and contractual aspects of the lng liquefied natural gas value chain. The lng unlimited magazine is published weekly 32 times per year.
Thereafter it is send into the pipeline system, for distribution to endusers. Those without prior knowledge of the lng business may. Lng value chain shipping decision for propanebutane lng shipping cost natural gas trade vs. Part of the lecture notes in economics and mathematical systems book series lne, volume 619. Lng and domestic gas value chains introduction lng value chain domestic gas value chain domestic market. The use of government subsidies has also been important, but the paper shows that. Wartsilas extensive expertise across the entire lng value chain enables it to bundle. The lng process chain from extraction, processing and transport, to consumption source. The tokyo gas group, since receiving the first cargo of lng to japan, in 1969, has been the nations leader in use of lng and a top company in natural gas. This course provides a comprehensive overview of the lng value chain from upstream supply, liquefaction, shipping and regasification of lng into downstream markets. We are the global leader in process safety, and our integrated simulation and control solutions reduce operating cost and increase availability by up to 5%. This course covers the lng value chain, from gas supply to liquefaction, ship transportation and receivingregasification terminals, and the processesfacilities required in each sector.
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