Introduction To LNG PDF

Liquified Natural Gas – An Introduction This report and/or presentation is based on our knowledge of relevant market conditions. Our estimates are made on the basis of this knowledge, but other circumstances, or new circumstances, as well as general uncertainty could cause the market to develop dif...

Liquified Natural Gas – An Introduction This report and/or presentation is based on our knowledge of relevant market conditions. Our estimates are made on the basis of this knowledge, but other circumstances, or new circumstances, as well as general uncertainty could cause the market to develop differently. We take general reservation for misprints. MB Shipbrokers is not responsible or liable for any damages or losses resulting or arising directly or indirectly from your use of the report. © All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing it in any medium by electronic means) without the written permission of the copyright owner. Likewise, any quoting is prohibited without the written permission of the copyright owner.  © 2024 MB Shipbrokers K/S. All rights reserv ed. LNG Value Chain Introduction Page 2  © 2024 MB Shipbrokers K/S. All rights reserv ed. Divisions of the LNG Value Chain Commonly understood phraseology Upstream Midstream Downstream ‒ Natural gas is extracted from subsurface ‒ LNG is pumped from storage tanks into ‒ LNG is subsequently transferred to a reservoirs and transported in small specially designed double hulled tankers regasification plant, where it is heated and pipelines, often referred to as a gathering for shipment around the world. allowed to expand back into its original system, to processing facilities for removal gaseous state, for delivery into the natural of impurities and natural gas liquids. gas pipeline system. ‒ Vessels used for U.S. exports typically ‒ A distinctive odor can be added to gas for have a carrying capacity between about ‒ Extracted natural gas can contain non- safety, so people can detect leaks during ‒ 3.0 and 3.7 Bcf of NG its delivery and use. hydrocarbons, including hydrogen sulfide, nitrogen, carbon dioxide, and water. ‒ 62,000 and 77,000 mt of LNG ‒ Alternatively, a portion of the LNG ‒ 3.1 and 3.8 mmbtu delivered can be put into smaller containers and loaded onto trucks, barges, ‒ Natural gas liquids, like propane or or rail cars that act as a virtual pipeline to butane, are also extracted and sold ‒ For context, a typical U.S. tanker carrying deliver LNG to more remote areas not separately the equivalent of 3.5 Bcf of natural gas served by traditional underground could support the daily natural gas needs pipelines. of Spain. ‒ At the liquefaction plant, purified natural ‒ Natural gas can be transported via large gas is converted to a liquid state by diameter transmission pipelines to local chilling it to about -162 degrees Celsius, ‒ When the tanker arrives at its destination, distribution networks of pipelines for reducing its volume by 600 times. LNG is unloaded at the terminal and delivery to residential consumers, stored in cryogenic tanks. businesses, industrial facilities, and power generation plants. ‒ LNG is a clear, colorless, and non-toxic liquid, which is stored in large cryogenic tanks until it’s loaded into an LNG tanker Page 3  © 2024 MB Shipbrokers K/S. All rights reserv ed. Divisions of the LNG Value Chain Simple Visualisation Page 4  © 2024 MB Shipbrokers K/S. All rights reserv ed. LNG Global Trade Flows 2023 – Top 10 LNG Exporting Countries (by Capacity) 2023 – Top 10 LNG Importing Countries (by Capacity) Million mt Million mt Trinidad & France Tobago Egypt Brazil Malaysia UK Nigeria Turkey Indonesia India Algeria Spain Russia United States Qatar China Australia South Korea United States Japan 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 0 50 100 150 200 250 300 Page 5  © 2024 MB Shipbrokers K/S. All rights reserv ed. Global LNG Trade Flows 2023 Page 6  © 2024 MB Shipbrokers K/S. All rights reserv ed. Global LNG Trade Flows Approx Sailing Times to Asia Commonly Used LNG Trade Flow Terms/Ideas In Days Sailing For Investigation & Discussion ‒ Canals – importance and constraints Russia (West) ‒ Slow Steaming/Floating Storage USGC (via CoGH) ‒ Laden/Ballast voyages ‒ Back Haul Cargo USGC (via Suez Canal) ‒ 2 way/3 way economics – Round Trip Economics? Russia (via Northern Sea Route) ‒ Acronyms USGC (via Panama Canal) ‒ USGC – United States Gulf Coast Mozambique ‒ NEW – North-West Europe ‒ FE – Far East Qatar ‒ JKTC – Japan, Korea, Taiwan, China Range Canada (WC) ‒ CoGH – Cape of Good Hope ‒ HH – Henry Hub (Price Point) Alaska ‒ TTF – Title Transfer Facility (Price Point) Australia ‒ JKM – Japan Korea Marker (Price Point) 0 5 10 15 20 25 30 35 40 45 50 Page 7  © 2024 MB Shipbrokers K/S. All rights reserv ed. Global LNG Trade Flows US Export Projects - Example What do we want to know from the Major US Projects information? ‒ This chart details major components of project that we/clients want to know: ‒ Owner ‒ Start dates/status ‒ Nameplate capacity ‒ Train break downs Page 8  © 2024 MB Shipbrokers K/S. All rights reserv ed. Take away Questions Think about the following ‒ What is the main molecular component of LNG? ‒ Where does LNG come from? ‒ What temperature is Natural Gas cooled to in order to become LNG and how much is its volume reduced by? ‒ What sort of end uses to they provide? ‒ Who is the largest exporter/importer of LNG? ‒ What are some of the most important trade routes for LNG? Page 9  © 2024 MB Shipbrokers K/S. All rights reserv ed. Useful Links ‒ Conversion Factorshttps://www.henergy.com/conversion ‒ Acronyms https://schoolofshipping.co.za/wp-content/uploads/2018/05/Shipping -terms-and-abbreviations-1.pdf ‒ International Energy Agencyhttps://www.iea.org/ ‒ International Group of LNG Importershttps://giignl.org/ ‒ Dataloy Distance Tables ‒ https://ddt.dataloy.com/#/login Page 10  © 2024 MB Shipbrokers K/S. All rights reserv ed. Any questions? Give us a call. +45 3344 1400 [email protected] Name Title [email protected] +45 3344 1400