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Economic evaluation of a new small-scale LNG supply chain using liquid nitrogen for natural-gas liquefaction

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  • Kim, Juwon
  • Seo, Youngkyun
  • Chang, Daejun

Abstract

This study proposed a new LNG (liquefied natural gas) supply chain using liquid nitrogen (LN2) to liquefy natural gas on a small scale, and analyzed the life cycle cost (LCC) and the life cycle profit (LCP) for the supply chain. Natural gas was liquefied with the latent heat of LN2 without any turbo-machines. The LNG was transported to an LN2 production site, where LN2 was produced with the cold (cryogenic) energy of the LNG. Then, LN2 was transferred to the LNG production site again, completing the cycle. To verify the economics of this supply chain, the LCC and LCP were estimated with different design and operation conditions. This supply chain was found to be significantly profitable because it efficiently used the cold energy of both LNG and LN2, eliminating the required cost for the regasification process. The results of LCC and LCP showed that the profit of the supply chain was maximized when the pressure of the LNG product was approximately 7bar, irrespective of the transportation distance. This was because the latent heat and density of LNG were different from those of LN2. The distance between the LNG and LN2 production sites was the dominant parameter that governed the economics of this supply chain.

Suggested Citation

  • Kim, Juwon & Seo, Youngkyun & Chang, Daejun, 2016. "Economic evaluation of a new small-scale LNG supply chain using liquid nitrogen for natural-gas liquefaction," Applied Energy, Elsevier, vol. 182(C), pages 154-163.
    • Handle: RePEc:eee:appene:v:182:y:2016:i:c:p:154-163
    DOI: 10.1016/j.apenergy.2016.08.130
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    References listed on IDEAS

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    4. Uwitonze, Hosanna & Chaniago, Yus Donald & Lim, Hankwon, 2022. "Novel integrated energy-efficient dual-effect single mixed refrigerant and NGLs recovery process for small-scale natural gas processing plant," Energy, Elsevier, vol. 254(PA).
    5. Sanghyun Che & Juwon Kim & Daejun Chang, 2021. "Liquid Air as an Energy Carrier for Liquefied Natural Gas Cold Energy Distribution in Cold Storage Systems," Energies, MDPI, vol. 14(2), pages 1-23, January.
    6. Davor Dujak, 2017. "Mapping Of Natural Gas Supply Chains: Literature Review," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 17, pages 293-309.
    7. Jamin Koo & Soung-Ryong Oh & Yeo-Ul Choi & Jae-Hoon Jung & Kyungtae Park, 2019. "Optimization of an Organic Rankine Cycle System for an LNG-Powered Ship," Energies, MDPI, vol. 12(10), pages 1-17, May.
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    10. Ancona, M.A. & Bianchi, M. & Branchini, L. & De Pascale, A. & Melino, F. & Mormile, M. & Palella, M. & Scarponi, L.B., 2018. "Investigation on small-scale low pressure LNG production process," Applied Energy, Elsevier, vol. 227(C), pages 672-685.

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