Large supplies of cheap natural gas have caused many companies to search for gas monetization options. Most focus has been on the construction of large-scale LNG liquefaction facilities. However, there are several smaller markets that are also benefitting from and seeing new innovation in the wake of cheap, plentiful gas.
For example, low-speed reciprocating compressors are used, among several other applications, to compress boil off gas in LNG fueled vessels and LNG carriers. There has been one particular development in the past few years that may have a significant impact on these segments. It is the development of the Main Engine – Gas Injection (ME-GI) LNG carrier.
The ME-GI LNG carrier is significant because not only does the compressor handle boil-off gas, like in other LNG vessels, but ME-GI carriers also reliquefy part of the boil-off gas. The end result is a carrier that consumes 25% less fuel than the most efficient dual-fuel diesel electric LNG carriers on the market today. Teekay was the first company to take delivery of a ME-GI carrier and it is currently shipping LNG from Cheniere’s Sabine Pass liquefaction plant. Due to higher efficiency ME-GI LNG carriers could make up a significant share of all new carriers delivered over the next decade.
ADI Analytics has looked extensively at gas monetization markets and their impacts on various equipment segments as a part of its Natural Gas Monetization Advisory service. For more information please contact us.
-Tyler Wilson and Uday Turaga
