An Assessment of Small Scale LNG Applications in The Mediterranean Region

DRAFT V1 – PLEASE DO NOT CIRCULATE OR CITE
AN ASSESSMENT OF SMALL
SCALE LNG APPLICATIONS IN
THE MEDITERRANEAN REGION
(DRAFT)
MAY 2020
Table of contents
1 Introduction........................................................................................................................................... 3
2 Overview of the LNG Market and growth of the SSLNG business in 2019............................................ 4
3 Growth of the SSLNG business in 2019 ................................................................................................. 4
4 Defining SSLNG ...................................................................................................................................... 5
5 SSLNG follows the LNG main drivers and benefits ................................................................................ 6
6 LNG and Small-Scale Value LNG Chain optimization ............................................................................. 8
7 Technology .......................................................................................................................................... 11
7.1 SSLNG liquefaction ...................................................................................................................... 11
7.2 SSLNG regasification .................................................................................................................... 13
7.3 SSLNG satellite stations plants and storage ................................................................................ 15
8 SSLNG Applications.............................................................................................................................. 16
8.1 SSLNG for Power Generation. ..................................................................................................... 17
8.2 LNG as fuel for Maritime transportation - Bunkering ................................................................. 19
8.3 LNG as a fuel for land transportation .......................................................................................... 22
8.4 LNG fuel transportation to isolated areas, no connected to the gas network ........................... 22
8.5 LNG for Industrial Supply............................................................................................................. 28
8.6 LNG supply to Islands .................................................................................................................. 30
9 SSLNG Economic Debate Maritime Transportation & Virtual Pipeline ............................................... 33
10 Lessons on SSLNG development outside the Mediterranean region and a current Mediterranean
overview ...................................................................................................................................................... 36
10.1 China Case ................................................................................................................................... 36
10.2 Nordic case .................................................................................................................................. 37
10.3 European Union case................................................................................................................... 39
11 SSLNG Applications in Mediterranean Countries and Mediterranean Islands and possible cooperation
border countries. ......................................................................................................................................... 41
11.1 Current Mediterranean overview ............................................................................................... 41
11.2 SSLNG applications assessment in the Mediterranean countries ............................................... 45
12 SSLNG Applications and possible cooperation in some border countries........................................... 55
13 Market opportunity mapping framework ........................................................................................... 56
14 Conclusions .......................................................................................................................................... 59
2 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

DRAFT V1– PLEASE DO NOT CIRCULATE OR CITE
1 Introduction
The total LNG volume traded in 2019, was 354.7 mton. The LNG industry continues to reach its sixth
consecutive year of incremental growth 13% from the previous year, according to IGU LNG report 1.
Indeed, an increasingly more significant number of countries around the world are likely to embrace LNG.
And it is more than likely that smaller countries with isolated consumption centers or islands will swell the
ranks of the number of countries that will adopt LNG and Small Scale LNG (SSLNG) applications to cover
their energy requirements.
This assessment will analyze the opportunities for providing reliable electricity and gas in rural
communities and islands where power grid and gas distribution networks do not exist or scarce. The study
will also investigate value chain optimization with small scale LNG to power solutions.
This report aims to provide an assessment of the emerging Small-Scale LNG applications in the
Mediterranean Region, providing a synopsis of the different market penetration strategies to isolated
demand centers not connected to pipeline infrastructure to provide reliable electricity and gas
distribution. For that purpose, a technology description is necessary, as well as an economics optimization
of the SSLNG value chain. To this purpose, it provides a brief overview of SSLNG, the state of play, its
growth drivers, its economics, and the prospects for SSLNG in the Mediterranean area.
The key conclusion of this report is that even the SSLNG projects tend to be highly specific to the individual
country/regional requirements, are driven by the pricing of the petroleum products that the introduction
of LNG is likely to displace (in most cases diesel). Developers of such projects must overcome several
hurdles of geography, choice of technology fit for purpose to the specific customer requirements, and the
environmental constraints while ensuring that they are cost-effective.
As far as the Mediterranean region is concerned, this report concludes that the prospects of SSLNG are
attractive. The efforts of the European Commission to enable a competitive environment for SSLNG are
in the right direction. There are some valuable learnings available from European and Asian countries as
Norway, UK, Belgium, France, Spain, Italy, China, India that can be leveraged.
As far as opportunities to participate in the emerging SSLNG supply chain are concerned, the industry is
rapidly globalizing in the Mediterranean region with an established marine and industrial engineering skills
base, which are well-positioned to capture these growths.
1 IGU 2020 World LNG Report; The International Gas Union (IGU) founded in 1931. It is a worldwide non-profit organization
registered in Vevey, Switzerland with the Secretariat currently located in Barcelona, Spain.
The mission of IGU is to advocate gas as an integral part of a sustainable global energy system, and to promote the political,
technical and economic progress of the gas industry. The more than 160 members of IGU are associations and corporations of the
gas industry representing over 95% of the global gas market.
UfM Gas Platform | 3

2 Overview of the LNG Market and growth

of the SSLNG business in 2019
With the onset of mainly, a third of the global population in a total lockdown to face the sanitary COVID19
crisis raised by the pandemic virus, the gas and LNG industry needs will undoubtedly slow the coming
years. Industrial gas demand and Power generation should endure the bulk of the slowdown with citizens
expected to stay home. However, residential gas demand can help compensate somehow the vacuum.
The industry faces a never lived crisis caused by the pandemic, where all the LNG industry both importers
and producers must challenge. On the other hand, the lockdown starts up the pollution slowdown, making
big polluted cities cleaner.
The global LNG market has undergone a drastic trend changes throughout 2019. The market was
fundamentally built into two different regions, the Pacific and Atlantic Basins, gathering the higher LNG
consumptions countries like Japan, China, South Korea, India, Taiwan. Where two diverging trends
characterized the demand: on the one hand, it continued to be boosted by China despite the US-China
trade frictions and the slowdown of the coal-to-gas switch in the industrial sector. On the other hand, LNG
demand declined in Japan and South Korea, where increasing levels of nuclear power generation and the
pace of renewables deployment influenced the role of LNG in the power mix.
Since 2016 the increasing oversupply generated by new supply in different regions, Russia, the United
States, and Australia came without the incremental demand, particularly in Asia.
This situation completely shifts the market towards an increasingly complex market, with a growing
number of participants that allowed the market to expand beyond its traditional pattern of deliveries
under long-term fixed destination contracts over the last decade. That generated an increasing portion of
LNG sold under shorter contracts or on the spot market shipper than the traditional legacy contracts. This
global commoditization of the business SSLNG has provided a solid base for the emergence of new LNG
applications and markets, such as a Small-Scale solution.
This situation made a collapse in the spot LNG market prices, closing the arbitrage window between basins
and converting Europe as the balancing global player, absorbing more than 90% of the oversupply.
European storage infrastructure played a key role in this scenario but would not offer the same flexibility
in the coming years as the inventories are expected to be full before summer.
3 Growth of the SSLNG business in 2019

The SSLNG growth within the LNG industry for 2019 was intense and experienced an increase in all its
sectors, from the production to the downstream distribution. In 2019, six small scale facilities less than 0.1
mtpa were commissioned two for production, and four regasification units.

On the production side, the Vysotsk LNG plant starts production. A small-scale 0.66 mtpa LNG project of
located in Russia in the port of Vysotsk, with a 42,000 m3 LNG storage tank to 30,000 m3.
The Examar Tango FLNG small-scale facility with 0.5 mtpa production capacity berth in the port of Bahia
Blanca, Argentina, and started production in June 2019.
On the regasification side, four small-scale facilities came on stream in 2019 with a regasification capacity
of less than 1.0 mtpa.
In Europe, some improvement has been made during the last year for the maritime and land
transportation market, the Dunkerque LNG terminal has now the capability to load LNG truck, and the
actual jetty has been adapted to load small LNG vessels from 5000 m3. The bunkering activity in Fos Cavaou
LNG terminal begun operations for 5,000 m3 vessel and the truck pilot station have been upgraded to
allow the loading up to 40 truck per day. In Spain, the LNG terminal in Huelva is upgrading its facilities to
allow the loading of small vessel, including LNG bunker vessels, the terminal already have experience in
loading vessel from tank truck to ships (TTS)2.
In Asia, the jetty of the Singapore terminal is now operative to load small vessel from 2,000 to 10,000 m3.
The global LNG business is moving in a direction that favor’s SSLNG development, a rising number of new
countries adopting LNG are smaller countries whose requirements might be better suited by smaller size
projects. On the other hand, the use of gas as a transportation fuel, both for marine and surface transport
applications, is growing due to rising air quality concerns and new policies that banned the use of heavy
fuels for Maritime transportation.
Today the SSLNG segment is between 28 and 30 MTPA, which is approximately 8.5% of the global LNG
market. This traded volume appears to be almost equally between Europe and China with rest Asia mainly
Japan and Korea.
4 Defining SSLNG
The way SSLNG has been classified primarily by the technology providers and hence the only consistent
feature of defining SSLNG has been that it relates to the size or limitation of the technology and the
equipment that forms the part of the SSLNG value chain.
SSLNG definition, therefore, relates to the technology or the equipment specifications and is not
connected in any way to destination market size.
Figure 1 below provides a summary of how SSLNG is size/limitation classified as such and where the key
differences as compared to Standard LNG lie, maybe by the International Gas Union IGU.
2.For more information please consult GIIGNL; International group of liquefied natural gas importers, gathers 88 members of the
LNG import industry from around the world – in Americas (11 members), Asia (44) and Europe (33).

Figure 1 Defining SSLNG and comparison with “standard” LNG
Source: IGU Definitions for liquefaction, World Bank Report 2015, and Industry literature.
This figure relies on the methodology the IGU classified a liquefaction plant of 1 MTPA size, and below as
SSLNG, the classification is largely evolved from the LNG industry. What is interesting to note from Figure
1 above is that the differentiation between mid and mini/micro SSLNG Scale/small and mini/micro, which
is also emerging.
What is significant is how the industry is engaging/collaborating to make SSLNG as a distinctive feature of
the global LNG trade.
5 SSLNG follows the LNG main drivers and

benefits
The two main drivers for the growth of LNG globally, are i) the abundant and growing sources of gas supply
globally and ii) the universal acknowledgment of the suitability of natural gas as a fuel of choice to replace
high emission fossil fuels like coal and oil fuels are both equally applicable in the case of SSLNG. The main
drivers would be economic, environmental, and geopolitical.
The environmental benefits of LNG in terms of CO2, SOx, NOx, and particulate emissions are undisputed
when compared to alternative fossil fuels. Still, it also needs to have a transparent and profitable business
model to be feasible.
The supply chain can be rather expensive due to the diseconomy of the small scale and the relatively small
size of the market. Still, as technology solutions mature, standardization, modularization, and therefore
competitiveness is expected to increase. The lower entrance hurdle compared to large LNG projects, opens
opportunities for creativity and fast new technology deployment.

The list below summarizes the various factors that are expected to drive the growth in SSLNG.
• Cheap, abundant and growing supply of gas globally

• Emerging smaller countries and Isolated Islands adopting greater use of LNG and SSLNG
• The emergence of gas and LNG as a fuel of choice in transportation, especially marine fuel
• Technological Advances and compelling inter-fuel economics
• Drive towards miniaturization and standardization in cryogenic equipment manufacturing
• Environmental pressure on the industry for clean air, low polluting fuels and demand for reducing
fossil fuel burn related carbon emissions
• Emergence of new customer segments such as rail, marine and road transport alongside industrial
demand growth and gas-based power generation demand.
From an environmental point of view, the main driver that both LNG and SSLNG have is the relevant
position that the fuel takes on the issue of ensuring availability and sustainability of clean air. The use of
natural gas not only improves air quality by reducing pollution but also helps mitigate the impact of climate
change by reducing emissions, by consequence has tangible positive effects of people's lives around the
world, creates jobs, and increases GDP in many countries.
The role that natural gas and LNG plays as the cleanest burning fossil fuel with no residual particulate
matter (PM10 and PM2.5); and SOx and NOx limits well below those prescribed in the International
Maritime Organization IMO3 legislation as well as a considerably lower level of carbon emissions, has
consolidated the position of natural gas and LNG as prime fuel for maritime transportation and power
generation.
From the experience in the power sector in Europe, India and China the switch from coal fired power
generation to gas power generation has been one of the most effective strategies deployed to reduce
carbon emissions, bringing clean air in a very short time frame.
For example, the switching to natural gas in the city of Morbi in India, brought immediate results,
translated into significantly improved air quality readings, with a 75% reduction in PM2.5 levels, 72%
reduction in PM10, and an 85% reduction in SO2. In addition to the air quality improvement, there were
significant other environmental benefits4.
Nowadays, several new customer segments are now being served by LNG, and the ability of refueling LNG
has made access to these new market segments possible.
• Remote gas to power generation: projects often on islands which hitherto had no choice but to
use higher polluting diesel for their power generation needs.
3 The International Maritime Organization IMO is the United Nations specialized agency with responsibility for the safety and
security of shipping and the prevention of marine and atmospheric pollution by ships. www.imo.org
4 For more information, please consult IGU Case Studies in Improving Urban Air Quality 2019 www.igu.org

• LNG Trucks: The ability to not only transport LNG to remote areas or areas not served by pipelines
through trucks but also advances in technology that the boil off-gases are utilized to power the
trucks along the journey has made this segment open to use LNG.
• Exploration and Production offshore vessels, especially Offshore Supply Vehicles and E&P Rigs, are
now able to use LNG as a maritime fuel.
• The use of gas and LNG as a source of fuel to displace oil in rail and marine transport and remote
industrial applications is increasing.
6 LNG and Small-Scale Value LNG Chain

optimization
The LNG and SSLNG value chain ranges from the natural gas upstream to the consumption of natural gas
by the final end-users.
The value chain encompasses the gas upstream, liquefaction, regasification, storage, and end-user
applications. The key differences between the standard LNG and the SSLNG value chain can be
summarized in Figure 2.
Figure 2 The key differences between the standard LNG and the SSLNG value chain
Source: OME
It is first important to understand how the SSLNG value chain is deeply entwined with standard LNG supply
chain and infrastructure and how the emergence of LNG bunkering has played a role in “connecting” the
SSLNG activity with regular LNG supply chains globally.

Figure 3 below is a graphical representation of the interconnected LNG and SSLNG value chains.
Figure 3 SSLNG Value Chain Integration with Standard LNG
LNG
Truck / ISO Small Onshore Refuelling
Liquefaction LNG Truck Fuelled
Containers Storage / Station
Regas Trucks
Power
Small FSU
FSRU
Liquefaction
Mining
Small Onshore Truck /

Small Scale
Storage / Barge /
Carrier
Regas Pipeline
Industry
LNG Terminal
Marine
FSRU
LNG
Fuelled
Ships
Bunkering LNG Rail
Power
Remote
Areas
Source: OME
In Figure 3 above, the development of SSLNG is intertwined with the activity of the larger terminals in its
proximity. It also shows how SSLNG projects have a close symbiotic fit with the larger terminals. The ability
to break bulk the large cargoes and distribute them efficiently to newer customer segments is at the heart
of this symbiotic relationship.
Two more important observations can be made from Figure 3, given the number of ways in which these
cargoes can be handled (by truck loading, terminal loading, ship-to-ship loading or carrying the LNG in
trucks, barges, or with ISO containerized cargoes), the integration of the SSLNG value chain offers immense
flexibility to the delivery mechanism and various customer segments indicated in the right-hand side of
the chart can effectively be served.
This flexibility offered by the SSLNG supply chain means that the projects are not comparable, and hence
the supply chain optimization costs and its economics varies considerably.

As SSLNG activity connects with the regular LNG supply chain in the mid-stream and downstream
regasification and storage, it is helpful to provide granularity on the economical parameters of these
supply chain elements. Alike for like comparison of the unit costs in a key-value chain activity such as LNG
shipping is revealing:
Figure 4 Shipping CAPEX Comparison
Source: OME estimations
The sharp difference in the capital costs of typical conventional LNG ship vis-à-vis Mid-Scale or SSLNG
ships reveals the superiority of the economics of scale that must exist in every capital-intensive industry,
and LNG is no exception.
That there is a considerable scope to control project execution costs by taking advantage of careful site
selection, leveraging existing infrastructure, proper project planning, capital budgeting, and control and
excellent project execution. While these factors are within the control of practitioners and managers,
there are also a number of factors relating to SSLNG economics that are beyond the control of even the
experienced practitioners.
The three principal factors that have a significant bearing on the economics of SSLNG projects are:
• Geographic Constraints: while developers carefully consider siting decisions, there are no perfect
site locations, and several ecological, security and sea conditions related issues usually conspire
with the most carefully found of siting decisions.
• The nature of LNG price mechanisms and its relationship with pricing of alternative fuels. As
SSLNG projects deliver LNG as a fuel substitution solution in most circumstances, the pricing
environment of the alternative fuels is usually beyond the control of project sponsors and
developers.
• Local Economic conditions, policies, and industry structural issues relate to the competitive
advantage that is available to the project developers and sponsors; these again are not issues
that can be swiftly or easily turned around.

7 Technology
At a high level the SSLNG chain is identical to the standard LNG chain with the main difference being at
the distribution levels where LNG transportation is possible using small marine barge storing small
quantities of fuel, or with ferries carrying LNG trucks on land, or trucks on land to carry the volumes as
opposed to the use of large LNG carriers in the case of standard LNG.
We will explore in detail the specific aspects of technology that is different in the case of SSLNG and we
follow the LNG value chain.
7.1 SSLNG liquefaction

Natural gas liquefaction is a process that involves two main steps; i) The process of feed-gas pretreatment
and ii) The process of actual liquefaction where the gas is cooled down to -145 to -160 degrees C depending
upon the choice of technology deployed in the liquefaction process.
The feed-gas treatment too depends upon the type or characteristics the feed-gas demonstrates and
consists of the following:
• Acid Removal to remove the acidic gases within the feed-gas (which are mainly CO2 and H2S). This
is important step to avoid problems of blockages developing in the liquefaction units later.
• De-hydration is then carried out to prevent ice and gas hydrates formation in the liquefaction
stage
• Mercury Removal is the carried out to prevent the mercury from equipment corrosion in the
liquefaction process followed by,
• Natural Gas Liquids or Condensate extraction, a process which is essential to establish the gas
quality represented by the Wobbe Index- a metric that indicates the High Heating Value (HHV) of
the LNG. This process is also helpful in ensuring that the heavy hydrocarbons which can freeze the
liquefaction equipment leading to downtimes are removed.
Up to this point when the feed-gas is ready for liquefaction the processes to be followed in standard LNG
and SSLNG are identical. The differences in technology are only a scale matter.
Feed-gas pretreatment is essential to avoid problems arising in the process leading from it as they have
the potential to seriously undermine the technological process in liquefaction which can derail the entire
LNG chain downstream. However, many of the early SSLNG liquefaction units could simply avoid this
aspect of pretreatment as they were being fed by a continuous supply of “pipeline quality” gas which
obviated the onerous pretreatment requirements.
The other advantage technically SSLNG plants could avail of when being supplied by pipelines was that of
the high pressure in the pipelines; liquefaction plants which require to be fed at higher pressures could
accept this pipeline quality gas as compared to associated gas which was used in the case of standard LNG
and which required the necessary pretreatment as well as additional compression.

The important technological development that has shaped the development of SSLNG is the standardized
design of a “pretreatment train” consisting of an acid gas removal, dehydration and mercury removal units.
As many SSLNG units are being fed
The liquefaction process that follows can be significantly different in the case of SSLNG and this aspect is
covered in this section on liquefaction in detail.
Where the technology/process is also different in the case of SSLNG is the post liquefaction stage when
unlike in the case of standard LNG where the liquified LNG at -160 deg C is stored in large storage tanks
ready for transfer to a LNG carrier, in the case of SSLNG the route that is followed may also include direct
delivery from storage tanks to either trucks or trains.
Returning to liquefaction, depending upon the LNG specification that must be achieved this is usually
dictated by customer needs- the liquefaction process for standard LNG is usually one of the following four
processes:
1. Propane Pre-Cooled Mixed Refrigerant Process (C3MR) which is a process designed and licensed
by Air Products Inc, US or
2. Optimized Cascade Process (Cascade) designed and licensed by ConocoPhillips, or
3. Double Mixed Refrigerant Process (DMR) designed and licensed by Shell, or
4. Mixed Fluid Cascade designed and licensed by Linde, Germany.
Figure 5 Small-scale LNG liquefaction plant, the The 440ktpa LNG plant at Guanghui, China.
Source: Linde Engineering, from IGU Small Scale IGU report June 2015

7.2 SSLNG regasification

In regasification, the LNG is pressurized from the storage tanks using pumps to the desired pressure levels
as specified by the consumer using one of the possible four methods for vaporization.
• Open Rack Vapourisation (ORV):
• Submerged Combustion Vapouriser (SCV):
• Shell and Tube Vapouriser (STV):
• Ambient Vapouriser (AAV):
ORVs use sea or river water as a heat source with LNG flowing upward inside finned heat tubes as water
flows down from the outside of heat tubes. While this is relatively low operational costs solution the sea
water system capital costs are higher as well as a higher maintenance requirement around the ORV
coatings that is required to be changed every 5 years Environmental compliance concerns also abound
particularly with respect to the release of the cold water.
Figure 6 ORV (Open Rack Vaporizer)
Source: Kobelco5
SCVs comprise a fired heat source using the boil off gas that heats the coil carrying the LNG in a water
bath. This is a conventional vaporizer fitted with submerged combustion burners heating the water.
5 For more information https://www.kobelco.co.jp/english/products/ecmachinery/lng/orv.html

Figure 7 Submerged Combustion Vaporizers
Source: Linde Engineering6
STVs uses liquid as a heat medium to the LNG that flows through multiple tubes; depending upon the type
of loop used the liquid may vary. In case of open loops, the liquid is either sea or river water and in case
of closed loops a variety of fluids such as glycol or water could be used.
Figure 8 Shell & Tube LNG Vaporizers (STV)
Source: Chicago Power & Process, Inc7
AAVs use ambient air as the heating medium with either a natural or a forced draft. This is near zero cost
operational costs solution, requiring low maintenance but requires a greater physical footprint. Given that
SSLNG is essentially “small” this technology lends itself to be a preferred choice, despite the relatively
higher capital costs for the units.
6 https://www.leamericas.com/en/technologies/fired-process-equipment/submerged-combustion-vaporizers/index.html
7 http://www.chicagopowerandprocess.com/lng-vaporizers/

7.3 SSLNG satellite stations plants and storage

There are two main technology solutions for SSLNG storage: vertical cylindrical flat bottom tanks that are
self-supporting or vacuum insulated pressurized tanks also known as “bullets” that can be arranged
together horizontally in arrays depending upon the volume requirements. The volume of storage required
determines the choice of technology.
Typically, the flat-bottomed cylindrical storages which are relatively easy to construct offer an optimal
solution for the higher end of storage requirements in SSLNG projects whereas the vacuum insulated
bullets help to serve the lower end of the volumes.
Industry practices suggest that the breakeven volume for cost optimization is between 10,000 cubic
meters and 15,000 cubic meters. For volumes above 15,000 the flat bottom cylindrical systems are
preferred whereas for volumes below 10,000 cubic meters the vacuum insulated bullets are a technology
of choice.
Satellite stations are often built at the end user site, can be constructed to meet the needs of a single
consumer, such as an industrial plant, a group of consumers or isolated demand centers not connected to
pipeline infrastructure to provide reliable electricity and gas distribution
They can be used for gas storage, peak shaving in intermediate points between truck and or rail deliveries.
In these cases, trucks transport smaller amounts of LNG from major stations to stations downstream of
the grid.
Using satellite storage stations for LNG enables the practice of storing gas for use when demand is at its
highest level. In winter, LNG stored in satellite stations can be utilized by the local community. In this way,
satellite stations can both ensure the security of supply, but also prevent to rely on spot purchases to meet
peak demand.
Figure 9 Horizontal and vertical pressurized tanks at Møsjoen (5000m3) and Titania (250m3), Norway.
Source: Gasnor AS (Shell), from IGU Small Scale LNG report June 2015

8 SSLNG Applications
As mentioned, the attractiveness of SSLNG and its rapid growth and maturity is attributable to the
adoption of LNG as the fuel of choice in many sectors as power generation, industrial applications,
household gas and transportation sector.
Secondly, despite the geography and location specific nature and the concentration in certain key
technological aspects of the SSLNG business such as liquefaction and bunkering, SSLNG activity is picking
up momentum in many parts of the world at the same time. Its growth is not restricted only to those
geographic areas that traditionally have experience with LNG but whole swathes of new LNG adopting
countries are considering developing SSLNG related solutions
The third factor that appears to be driving greater adoption of SSLNG activity is that traditional LNG chains
remain no longer strictly end to end vertically integrated. Supplier to destination market or through the
medium of SSLNG infrastructure the LNG can now be reached deep into the destination markets without
the destination market requiring the requisite pipeline network connectivity to deliver LNG to its end
users.
There are distinct end user customer segments that use LNG and its flexibility to be delivered in different
ways and its ability to be stored and supplied is feasible and a clear advantage.
Re-loading of LNG, bulk making and breaking at key points in the supply chain have thus enabled the SSLNG
business affordable and available.
The Figure 9 below captures the mechanism that has enabled these new end user markets to be connected
and the dynamics of these new end user market segments.
Figure 10 Key Market Segments & Growth Driver
Source: OME
We briefly examine each of these new end user market segments:

8.1 SSLNG for Power Generation.

Small-scale LNG-to-power can be defined as the solution combining LNG storage, transportation and
regasification with highly efficient production of electrical power, normally utilized in hinterland regions.
Certainly, relate to the energy transition in regions that have committed themselves to decarbonizing their
economies.
The choice to switch to LNG as fuel for electricity generation depends on economic and environmental
factors. As previously stated, natural gas is an abundant, accessible, safe and highly competitive fuel with
both oil and coal. On the other hand, electricity generation with natural gas is considerably more efficient
50% - 60% than in coal 33% and oil plants 27%.
Natural gas is the cleanest fossil fuel, in electricity production generates 50% less CO2 than coal and
between 20% and 30% than oil, which offers a clear emission reduction alternative, adding the
imperceptible emission of greenhouse gases such as sulfur dioxide (SO2), nitrogen oxides (NOx), mercury
(Hg), compared with other fuels. The increased use of natural gas provides a significant contribution to
improve local air quality and public health.
Natural gas-fired power plants provide a competitive and flexible back-up to variable renewable sources
of power. They can reach full output in minutes, providing electricity almost instantaneously and rapidly
responding to lulls in solar or wind power supply, and to surges in demand.
The requirement capital costs to adapt the oil electricity generation plants to natural gas do not typically
require high investment, and in some cases, it is just enough to replace the oil turbine. In other cases,
depending on the useful life of the facility, a complete replacement of the generation plant is a mandate.
In cases where the demand is not very high, the case of some islands in the Mediterranean with a small
energy demand, constitute an off-grid market niche to trigger.
The first one, refers to areas where the penetration of the gas distribution network has not been able to
land, isolated regions, mainly islands or remote zones that have developed their energy infrastructure
based on oil products fuel oil or LPG, not competitive with other technologies. The challenge is to establish
an economically sustainable logistics structure that allows the LNG supply of at competitive levels. A new
dimension that has been added to this traditional mainstay end user market of the LNG industry by SSLNG
that allows the LNG received at its terminals to be transferred within dedicated LNG trucks or smaller
barges for supply into hinterlands where the power generation facility is located.
Huge number of examples to this system have been deployed in India which has a robust LNG
regasification infrastructure but had its gas usage being constrained by lack of pipeline connectivity to
industrial users in the hinterlands. Several local businesses have started delivering LNG to remote diesel
fired power plants and other industrials on LNG trucks.
The second, refers to the replacement of large highly polluting coal plants by combined cycle natural gas
plants CCGT, these decisions have been motivated by the choice of natural gas as a replacement fuel in
the energy transition, large cities in China and India like Beijing, Shanghai, Morbi and New Delhi have

experimented how the technology change in the energy production has produced immediate benefits
improving the air quality.
Another example of LNG to power is Jamaica8. The former 120MW oil and diesel-powered Bogue
generation plant in St. James owned by Jamaica Public Service Company Ltd was converted to natural in
2015 to a capital cost of 22.7 M$.
A consortium formed by GE General Electric overseen the transformation of the natural gas plant, and the
US company New Fortress has constructed the LNG storage tanks and the regasification plant. The logistics
chain includes a fuel transfer from a floating storage unit to a small LNG barge that takes the fuel to the
Kingston port where the gas is regasified and distributed by pipeline to the natural gas power plant.
This operation, even with the current energy low scenario allow savings in the fuel management of around
$5.0 Million, and a reduction of 0.42 Mton of CO2e per year.
Some advantages from using natural gas vs. fossil fuels in power generation are:
• Gas Power plants have higher fuel efficiency per produced kWh of electricity and less associated
CO2 emissions/kWh.
• Gas Power plants improves air quality
• The average combined cycle natural gas plant is approximately 39 percent more efficient than the
oldest 50 percent of existing coal generation capacity.
• Reduced water consumption (low environmental footprint with radiator cooling).
• Modulated power plant design and flexible in case of a later extension
Figure 11 Small and Mid-Scale LNG satellite terminals9 – LNG to Power concept
Source: Wartsila - Small- and Small- and medium-scale LNG terminals
8 For more information, www.jpsco.com/gas-is-here-jps-announces-arrival-of-natural-gas-for-bogue-power-plant/

https://www.ge.com/power/gas/gas-turbines/lm2500
9For more information, please consult https://www.wartsila.com/docs/default-source/Power-Plants-documents/lng/small-and-
medium-scale-lng-terminals_wartsila.pdf

8.2 LNG as fuel for Maritime transportation - Bunkering

LNG as a fuel of choice for marine transportation is mainly driven by environmental considerations
following the IMO ruling on the global Sulphur cap on maritime emissions.
NOx and SOx are the primary targets for mitigation driven by the International Maritime Organization IMO
rulings and the appeal of LNG is further enhanced by the fact that it is the cleanest burning fossil fuel
producing no particulate emissions and performance that would far exceed the IMO cap on Sulphur and
Carbon emissions.
IMO, a United Nations body, controls and regulates many aspects of the global shipping business, through
its marine pollution protocol (MARPOL), has been adopted by member states to address pollution to the
oceans but is increasingly being used as an expanding regulation to encompass emissions reduction
measures to the atmosphere. MARPOL Annex VI also requires reductions in NOx nitrogen oxide emissions
worldwide. These limits vary per engine size, type and power. Current limits worldwide are based on the
tiered system which has been tightening limits since 2011.
According to the Society for Gas as a Marine Fuel (SGMF) typical sulphur specifications in LNG are less than
30 parts per million (ppm) of total sulphur, making them practically negligible. This equated to about
0.004% of sulphur by mass. LNG sulphur levels are therefore 1/125th of 2020 heavy fuel oil (HFO) limits
and 1/25th of ECA limits.
Though, LNG is not the only choice marine sector has when it comes to compliance with the sulphur cap;
fitting scrubber technologies is another option but is primarily viewed as a short-term solution for ships
currently plying to meet their sulphur cap.
The loading of fuel into a ship for supply is known as bunkering; in the LNG industry bunkering, can be
conducted in the four ways as described below in the Figure 18. In the case of SSLNG due to the IGF Code
now in force, a terminal to ship loading cannot be conducted; this is a procedure carried out only for
standard LNG transactions.
Starting from its desire to reduce its NOx emissions in one swathe, Norway embraced LNG bunkering first
in 2002. This was a regional play to deliver this new bunker fuel to small ships, such as platform supply
vessels, fishing vessels and coastal ferries, the environmental regulations put in place by international and
local regulatory bodies. Norwegian shipowners were the first to build new ships or convert the existing
ones to LNG fuel, displacing other bunker fuels.
Many LNG bunkering projects have been developed based on truck to ship or tank to ship installation years
before the scheduled entry into force of the International Maritime Organization (IMO) ban to burn fuels
on board of ships with sulphur content higher than 0.5%, and thanks to the availability of LNG in regions
that have been directly affected by local regulations to prevent air pollution such Europe and the US.
These days the bunker capacity of new projects, especially new builds, also requires larger capacity LNG
bunkers, which makes delivery of fuel from a significant number of LNG trailers commercially less
attractive. There has been a clear evolution since the first LNG bunkering projects of few thousands

of cubic meters to the recent ultra large container ships ordered by CMA-CGM10 with a total LNG fuel
capacity of 18,600 cm.
LNG Bunkering is carried out using the four methods described in the Figure 10 below:
Figure 12 LNG Bunkering Overview
Restricted to large tankers and terminals, this is common procedure for
Terminal to Ship standard LNG.
Safety protocols mean that IGF ships (used in SS-LNG) cannot use this facility
directly. A bunker ship is required.
LNG is transferred from Bunker Vessel using pressure differentials; if speed is

Bunker Vessel (STS) required, then pumps are used. Multiple ships can load from Bunker Vessels.
There are no formal limits on Bunker Vessel size.
Truck to Ship transfer using pressure differentials; inherent limitations due to

Road Trucks truck size and rules related to axle weight etc. An LNG truck can unload in an
hour.
Containerised LNG LNG cylindrical shape tanks of C-Type are fitted on to an ISO container (20 or
40 feet) and loaded onto to standard flat bed trucks for transport.
Source: OME
Before the building of dedicated LNG bunker vessels became popular the practice was to convert ageing
LNG carriers into LNG bunker vessels; the Chinese shipyards have broken some records in this space, it has
built since 2015 several very large bunker vessels of 27,500 cubic meter capacity for Evergas LNG which
owns 8 such carriers making the company of the biggest LNG bunker ship owners (if not the largest) in this
category.
Bunkering is an important physical and strategic/commercial link in the LNG chain and as such is carried
out with utmost care and due regard to safety, transparency and responsibility. The Master of the receiving
vessel is deemed to be acting on behalf of the buyers and similarly the “Person in Charge” conducting the
bunkering procedure is deemed to be acting on behalf of the sellers. The safe transfer of the fuel, with due
regard to checking the fuel quality is of utmost importance in this transfer of title process. Both entities
are mandated to terminate/abort operations if they are not satisfied with either the safety or quality issues
relating to the fuel. The procedure involves close monitoring from both sides the process of handover of
the fuel.
The image sourced from the SGMF report below graphically explains the bunkering process.
The role of LNG bunkering has been crucial in connecting the fast-growing SSLNG space to the standard
LNG chain.
10www.cma.cgm.com CMA-CGM is a maritime transport and logistics company with presence in 160 countries through 755
agencies, 750 warehouses, 110,000 employees and a wide fleet of 502 vessels.

A brief description of how bunkering operations are carried out:
• LNG Terminal to Ship (T-S): LNG terminals can transfer LNG to ships directly. Large terminals will
have storage tanks that operate at atmospheric pressure and bunkering will take place using
pumps. This type of terminal will be supplied by large LNG tankers and will often be the supply
source for road tankers and bunker vessels.
• Bunker Vessels: These historically have been retired/repurposed LNG carriers and can also be used
within the port complex-usually ports have the facilities to permit this. The advantage of bunker
vessels is the high rate of transfer as well as the ability to fuel multiple ships at the same time.
• Road Trucks: tend to have smaller capacity due to their axle weight restrictions which means
either multiple trucks connected through a suitable piping system are connected to the ship.
Transfer can be achieved either through pressure differentials or by pumping. Typically, a single
truck can empty within the hour.
• Containerised LNG: In many ways like a road trailer, double insulated thin walled cylindrical tanks
are fitted inside a typical 20 or a 40-foot ISO container frame and loaded on to flatbed trailers for
transport. These containers can be crane lifted for fueling on ships or can even drive onboard and
connected to the ship fuel handling system.
Figure 13 Kolsnes SSLNG - LNG Bunkering Small vessel loading + LNG Truck Loading
Source: Gasnor11
11 For more information www.gasnor.no

8.3 LNG as a fuel for land transportation

Another application that is currently being successfully developed in Europe, United States and Asia is the
use of SSLNG as a fuel for land transportation, in vehicles, trucks and buses powered either by compressed
natural gas (CNG) which is methane stored at high pressure or by LNG.
CNG for transportation purposes is wide used in Asia, China, India and Iran. Trucks powered by LNG are
becoming more popular in United States, Europe and China due to prices differentials with oil products.
Europe LNG fleet truck accounts for more than 4,000, United States about 10,000 vehicles, and in China
more than 100,000, 2018 figures.
Given the technical differences between the two technologies, LNG and CNG, the energy storage capacity
in tank for the LNG case is vastly greater since the liquid compression of the fuel is higher. This effect
produces an efficiency and consequent benefit in the fuel consumption over long distances.
In addition, since LNG-fueled trucks can load fuel either at the LNG service and storage stations provided
on the route, as well as at the LNG regasification or SSLNG terminals. Fuel loads in this type of
infrastructure with direct connection to the ship or to the LNG storage tank allow saving time and labor in
the distribution processes, reducing the time of refueling.
The great challenge to overcome in this type of transport is undoubtedly the management of the boil- off,
safe conservation of the fuel at extreme ultra-low temperatures for long periods, where the fuel can
evaporate, especially compared to the management of other fuels such as petroleum products.
Addressing these issues and mitigating risks can drive the adoption of LNG as a transportation fuel.
8.4 LNG fuel transportation to isolated areas, no connected to

the gas network
Isolated areas, no connected to the gas network or where the development of those infrastructures cannot
be feasible, several different solutions have emerged in recent years relating to the transportation of LNG
requiring the applications of SSLNG either by rail, road, river or sea where trucks, trailers, rails, and small
barges are carrying small volumes of LNG to feed the potential demand.
In some cases, barges and ferries are available to carry LNG trucks directly, to supply remote centers of
demand, where a local SSLNG facility and associated distribution chain to supply remote locations in the
area than other alternatives such as pipeline grid, to connect supply and demand satellite plants typically
make use of trucks, LNG iso-containers, LNG railcars or small LNG carriers to reach remote and small gas
consumers that have small scale regasification capacity.
The source of supply can be either i) from a conventional LNG receiving facility ii) from a small-scale
liquefaction facility sourcing gas from an existing pipeline or iii) from a small-scale satellite plant.
The SSLNG for transport solutions could be either, truck trailers designed for cryogenic temperatures or
trucks carrying ISO containers.

Truck trailers used for LNG transportation are double walled with internal containment in either stainless
steel or aluminum and external walls of either carbon or stainless steel with a vacuum isolation in between
with multilayer super insulation. This system reduces the volume losses arising from heat transfer and
usually may include pressure release valves in case of pressure buildup from boil off gas. Modern trailers
can store LNG for up to 45 days without having to resort to venting for pressure management.
For containerized LNG in many ways the like a road trailer, double insulated thin walled cylindrical tanks
are fitted inside a typical 20 or a 40-foot ISO container frame and loaded on to flatbed trailers for transport.
These containers can be crane lifted for fueling on ships or can even drive onboard and connected to the
ship fuel handling system.
Figure 14 LNG Transportation by Truck
Source: JAPEX infrastructure & Utility12
Figure 15 IVECO LNG Truck, and LNG Refuelling Statton
Source: IVECO13 and Gasrec14
12 For more information consult https://www.japex.co.jp/english/business/japan/lng.html

13 For more information consult https://www.iveco.com/uk/products/pages/gas-powered-for-long-haulage-new-stralis.aspx
14 For more information consult https://www.gasrec.co.uk/our-stations

Figure 16 LNG Truck storage tank
Source: IVECO13
Figure 17 LNG ISO Container loading in the truck
Source: LNG Global15
LNG transportation by rail constitute a challenging option to transport LNG, the fuel is transported in ISO
containers by rail transportation combined with truck option which allows the rail, loading and unloading
and, transport to end users.
Since LNG containers can be simply unloaded from trucks and placed on freight trains, assuming the
railway infrastructure is already in place the investments are minimal.
On the other hand, trains are more efficient and cost-effective than trucks if the distance is more than
200-250km, since larger quantities can be transferred at once. This is the case in Hokkaido, Japan, where
Japex moves LNG from Tomakomai to Kushiro, approximately 280 km away.
15 For more information, https://www.lngglobal.com/iso-lng-containers

One freight train can hold up to 40 containers. First, about 10 tons of LNG are trucked to a railway station,
where the containers are shifted to a train. At a train station, close to the destination, a satellite facility
run by a local gas company, the containers are transferred back to trucks for the final leg of the journey.
Figure 18 Transportation by rail
Source: JAPEX infrastructure & Utility
Figure 19 ISO containers transported by rail, Japan JAPEX
Source: JAPEX infrastructure & Utility
Another project that is undergoing about the LNG uses in railway transportation is the RaiLNG the
project is promoted by the Spanish consortium formed by Renfe, Enagas, Naturgy and ECA / Bureau
Veritas, selected by the European Executive Agency for Innovation and Networks (INEA) to demonstrate
the technical, economic, environmental and legal feasibility of LNG railway traction in Spain and in the
EU16.
16 For more information please visit https://www.railng.com/en/

Figure 20 Train Powered by LNG
Source: Rail LNG
In cases of liquefaction facilities being located at sea or other water access like rivers, the LNG transport
by ships or barges is a preferred solution. They can handle greater volumes and travel longer distances if
required. This solution is applicable if in the delivery side the receiving facility is compatible with the barges
allowing the mooring.
The receiving facility could be connected to the gas grid, in that case a regasification unit will be the most
practical solution and no further investment would be needed, in the case that there is a lack of
connection, the facility must be able to feed LNG trucks to transport the fuel to isolated consumers, where
a satellite plant would regasified the fuel and a virtual SSLNG pipeline would be generated.
If at the delivery shore, a lack of such infrastructure arises, a solution would be that a cargo ship or a ferry
well adapted could carry a battery of LNG truck trailers or ISO containers, this option would no need a jetty
and the distribution would be more efficient and faster.
In case of SSLNG, the smaller end of LNG carriers between 1,000 to 18,000 cubic meters are well suited.
As the standard LNG industry gravitates to larger LNG carriers which typically average around 145,000
cubic meters these earlier versions of carriers, now ageing are beginning to find charter opportunities for
the new SSLNG projects taking shape as floating storage units. Smaller ships are either being scrapped or
possibly considered as conversions for bunkering operations.
As for storage solutions and satellite stations they have been developed at key nodes along the routes
offer additional flexibility and the ability to respond to quick demand changes usually related to snap
weather events or emergencies. A few worldwide examples where this kind of technology have been
utilized in the LNG business.
China offers an example of how quickly LNG trucking solutions become popular, Chinese truck loading
demand in 2019, was 16 Mton feed from the large regasification plants and transported through trucks
either for consumption in transportation or for remote demand.

In Europe, the uses of LNG tankers to transport the LNG from a coastal LNG-receiving terminal to cities
inland is mature and growing market, where the satellites plants play a key role to store the fuel.
As gas markets gets more and more mature, a need to ensure the security of supply emerges to meet the
peak demand in the gas distribution system during seasonal demand. In this mode, it is necessary to can
take natural gas from storage or off the gas distribution network.
Peak-shaving LNG facilities liquefy and store natural gas when supply exceeds demand in the pipeline
network for eventual regasification during peak demand periods. The storage tank volumes in these
facilities can be very large, capable of storing 0.028 bcm to 0.057 bcm of natural gas.
Most well-developed gas transmission infrastructure, such as in North America and Europe, has some
degree of LNG-based peak shaving to address relatively short-term changes in gas demand, often because
of hot or cool weather, in addition to seasonal storage applications which typically do not involve LNG
facilities.
Figure 21 Small scale LNG Peak Shaving Plant + Regasification
Source: CRYONORM
LNG may also be transported by truck to nearby power stations that have small regasification modules, as
stated before. The array of LNG peak-shaving facilities within the natural gas distribution network may
result in other forms of LNG application, including vehicular usage.
Such different ways of fuel transportation can represent a mimic pipeline solution, often more flexible and
competitive to the energy density of LNG over pipeline gas.
In certain regions, it is economically more attractive to develop a local SSLNG facility and associated
distribution chain to supply remote locations in the area than other alternatives such as pipeline grid, or
supply from large scale LNG.

These typically make use of trucks, LNG iso-containers, LNG railcars or small LNG carriers to reach remote
and gas consumers and industries that must have small scale regasification capacity.
The source of supply can either i) from a conventional LNG receiving facility ii) from a small-scale
liquefaction facility sourcing gas from an existing pipeline or iii) from a small-scale satellite plant
The transportation chain forms the source to the isolated end user is often known as a virtual pipeline,
that could also be filled either by compressed natural gas CNG or LNG. often more flexible as transportation
routes can be changed depending on the emerging areas of demand. routes and competitive.
CNG is a low-cost alternative for the transport of small to average gas volumes over moderate distances
(+/-2000 km) where the volumes are too small for LNG or too far to transport by pipeline. The gas is
compressed to around 250 bar and can be transported to small villages or used to supply natural gas for
local vehicles.
Such small projects can be an opportunity for medium and small enterprises business, with a favorable
economic impact on local communities by replacement of imported fuels.
8.5 LNG for Industrial Supply

End users in the gas market can also be industrial customers, natural gas is a common fuel used in the
industrial sector, metallurgy, chemical plants, cement plants, ceramics.
Who in certain areas could be isolated from the gas network, and therefore forced to supply their industrial
processes with other fuels other than natural gas. Having the possibility to establish a reliable and
economically profitable supply, these complex industries become a potential natural gas supply market,
using the virtual pipelines chain.
Bringing this source of energy to isolated industrialized regions, many industries would choose this source
of energy for its economic competitiveness, calorific value and respect for the environment. In first place,
the use of natural gas in industrial processes guarantees better management of the production process,
as some of the benefits, it is a continuous supply that does not require storage or preparation for use.
Equipment that runs on natural gas needs less maintenance and gets better performance with this fuel
than with others like oil or coal.
Combustion can end immediately and is therefore adapted to the production process and not vice versa.
In relation to the previous point, we can also say that it is easily adjustable, allowing a constant
temperature to be maintained. For example, it is essential in the metal industry: metal heating, heat
treatment, melting and reheating.
The applications of the LNG use in the mining sector are focused on the use of the fuel for large haul trucks
used in opencast mining and use for power generation due to their remote location made them in some
cases be off grid, being obliged to have diesel generators. Ended the incentives to use LNG are, from one
side economic benefits due to fuel cost reduction and environmental as the use of LNG have a direct
impact in the reduction of greenhouse gas emissions. The applications are concentrated in Canada and the
United States and Australia.

The Offshore Supply Vehicles (OSVs) and Rigs market has been developed in Norway which was also one
of the first countries to develop a developed network system for SSLNG activities, the first of LNG fueled
OSVs started in 2003.
Norway envisaged the switch to LNG power to apply to both the offshore fleet of supply and support
vessels, and the coastal fleet of ferries, cargo, and other vessels. The Norwegian government then,
correctly, estimated that this switch to LNG for coastal shipping converted to LNG, would take Norway
70% of the way to achieving its NOx emissions reduction target. Trials of an LNG-powered first started out
using LNG produced by Equinor’s plant at Tjeldbergodden, where gas from the Heidrun Field landed.
Following this successful initiative this is being rolled out in other sectors of the North Sea in Europe, while
the first deployment in the US started in March 2015 in the Gulf of Mexico by Harvey Energy that served
Shell platforms. The OSV was dual fueled and the motivation to switch was driven by the Sulphur cap
regulation that was to be introduced in the US Emission Control Area (ECA) in early 2016. This is a growing
end new end use segment for the SSLNG industry.
Figure 22 Offshore Supply Vehicles (OSVs) LNG Powered
Source: STX Marine Inc SV310DF Offshore Support Vessels17
17 https://www.skipsrevyen.no/article/waertsilae-to-equip-first-u-s-flagged-lng-offshore-vessel/

8.6 LNG supply to Islands18

The Energy supply to the islands had always been a challenge to face, several barriers appears in the supply
path, the first one is a lack of infrastructure mainly generated by the second barrier, a lack of demand or
a market due by a limitation in the local population.
The SSLNG applications to supply these potential markets could emerge as an environmental, social and
economical solution.
A combination of the applications stated above i) Maritime plus ii) Land transportation and iii) Storage
plants can be combined to feed those potential markets.
There is no one unique logistic solution and several cases appear as the demand in the island or group of
island grows.
a) Case 1 Direct supply to the market.
One SSLNG supply vessel can supply the market (one or several Islands) and serve as storage, reloading
fuel from the import terminal as the requirements manifest. In this model, the same vessel is used to
transport fuel from the import terminal to the different bases ports (one or more) without using an
intermediate supply terminal. In land, the unloading to trucks with a possible combination of rail can serve
to transport the fuel to the end user. This model allows a significant reduction of both initial investment
and supply costs.
Figure 23 LNG Bunkering vessel – SKANGASS
Source: Gasum
b) Case 2 Supply by auxiliary terminal Offshore Storage Unit.

The higher demand performed in this scenario, drives in a scheme that requires an auxiliary offshore
storage terminal, that could also be onshore, but the investment would be higher.
18For more information about this model refer to CORE LNGas hive “LNG demand and supply logistics chain (Mediterranean,
Atlantic and Gibraltar Strait peripheral regions)

The supply to the storage facility is carry out by reloading’s from the import terminal, to optimize the value
chain, the feeding vessel and storage vessel would have to have the same volume capacity.
The supply-to-supply vessel is performed from storage terminal where one or more batteries of SSLNG
vessel are feed to supply the market. In land, the unloading to trucks with a possible combination of rail
and a set of satellite plants along the mimic pipeline can serve to transport the fuel to the end user market.
Figure 24 Floating Storage unit
Source: Tug Malta
c) Case 3 LNG supply is executed from ship to ship – Transshipment

In this model, a feeding ship is needed and expected to provide the supply to the island supply vessel
directly without the action of an auxiliary terminal. This model is recommendable for ports away from
import terminals and with a medium demand. A longer distance to an import terminal makes case 1 too
expensive and keeps a low demand level in case 2.
Figure 25 STS Transfer
S ource: LNG STS
d) Case 4 Land fuel transport to Ship TTS and MMTS

This model is mainly used to feed ships powered by LNG (Ferries or barges) from land trucks, one or more
trucks can supply the vessel simultaneously, this is the case of the Huelva terminal in Spain. Even though

this model is normally recommended for lower volumes, although it is a bunkering feed option for ports
with supply.
Figure 26 AIDA Prima being fuelled from shore LNG
Source: AIDA -
e) Case 5 LNG Trucks and ISO containers transported by ship / Ferries

A barge can carry LNG Trucks and ISO containers to supply the market. The vessel is used to transport the
loaded to trucks and ISO containers previously from the import terminal. In land, the unloading from the
ferry is direct. This model allows a significant reduction of both initial investment and supply costs and is
normally recommended for short distances.
Figure 27 LNG Trucks and ISO containers transported by ship
Source: EMSA Guidance on LNG Bunkering to Port Authorities/Administrations

9 SSLNG Economic Debate Maritime

Transportation & Virtual Pipeline
Given the different characteristics all the SSLNG projects have, the generalization in terms of costs is
somewhat ambiguous; each project must be studied individually, and therefore, the costs debate in the
SSLNG industry cannot be compared. As said, from a unitary point of view, the SSLNG suffers a
disadvantage compared to the large LNG business. The projects are to be mostly punctual, dealing with
small quantities and do not usually enter the scale economies, making higher unit costs than large LNG
projects.
On the other hand, new modular technologies are having very significant and positive effects on cost
reduction, allowing the entrance to the market where they could not be competitive.
The SSLNG cannot compete with the current infrastructures, that is a fact, the competitiveness arises with
new transport projects, new gas pipelines. The development of SSLNG projects mainly responds to a
specific demand, so they tend to be profitable as they are evidence of an economic and environmental
small solution.
The study includes two economic analyzes ii) Calculation of maritime transportation ii) Virtual gas pipeline
with land transportation.
a) Case 1: Maritime transportation
It is about finding out the costs of transporting LNG to a gas power generation plant located at 500 km,
LNG is carried by ship with a capacity of 30,000 m3, covering the demand for 0.25 bcm for a 200 MW
power plant. For the estimation of the transportation cost, a 20 years repayment period with a 2.0%
interest rate is considered.
Table 1 Calculation Assumptions
Maritime Transportation
Vessel Capacity 30.000 m3
Max. Speed 16 knots
Capex 105 Million USD
Opex 2,94 Million USD / year
Fuel consumption 28,6 ton/d
Fuel Price 250 $/ton
Harbor costs 20.000 $
Power Plant
Load Factor 80%
Efficiency 55%
Source: OME calculation

Total fuel transportation costs are estimated to be $11.2 Million per year. Per unit, price represents
$0.95/MMbtu.
b) Case 2: Virtual gas pipeline with land transportation.
The aim is to find out the costs to transport LNG to an industrial customer located 500 km distance. The
LNG is transported by land with tank trucks with a capacity of 40 ton 90 m3, covering demand from 0.05
bcm/y 85,000 m3 LNG per year to 0.2 bcm/y 330,000 m3 LNG per year.
The supply can be either by coastal regasification facility or by small-scale liquefaction plant fed by gas
pipeline or at the wellhead. The costs of these small liquefaction plants are very diverse and vary according
to technology and modularity. Small liquefaction plants are estimated to have investment costs between
350 $/ton and 1,250 $/ton in the case of the Gilmore LNG plant19 wellhead plant in Australia producing
56,000 ton/y that had an investment cost of $70 Million.
Liquefaction
Volume 0,067 mtpa

Capex $70 Million
Payback 16 Years
Tank Truck
Volume 40 ton
Capex $0,6 Million
Payback 5 Years
Speed 80 km/h
Fuel 250 $/ton
Satelite Plant
Sorage 2000 m3 (LNG)

Capex $3,0 Million
Payback 5,0 Years
19
http://www.energyworldcorp.com/projects.php Gilmore LNG Plant Australia

For the estimation of the liquefaction cost, a 16 years repayment period with a 2.0 % interest rate, and a
5 years repayment period for the tank truck and satellite plant considered.
Total costs of the virtual pipeline represent $1.3/MMtbu. A higher volume scenario will reduce costs per
unit, so far, the same case with 0.2 bcm/y 330,000 m3 LNG per year will reduce total cost per unit to
$1.0/MMbtu20.
The reality of the fact base on SSLNG, so far, is that every SSLNG related project has been an outcome of
a unique set of circumstances and hence not comparable.
Furthermore, at least in the case of EU projects, the terrestrial applications have developed at locations
where natural scale up due to existing expansion capacity was possible (e.g. Zeebrugge, Rotterdam, Isle of
Grain and others). Hence, the terrestrial application-related expansion costs might appear to be benign.
However, it cannot be taken for granted, especially in many of the regasification locations, even within
the EU, where road access options cannot be developed quickly due to the requirements of additional axle
loads for LNG vehicles.
Finally, as mentioned in the bunkering chapter, the global growth in LNG bunkering means that new
innovative solutions that involve jetty-less transfer of LNG, break bulk solutions, indicate that marine
options may not always remain highly prohibitive.
Indeed, a subject of emerging debate and unless a substantial base of comparable projects established, it
might not be appropriate to jump to conclusions.
20 Comparison with new pipeline infrastructure is in some cases irrelevant for projects with small volumes assumptions as
investments are to be much higher.

10 Lessons on SSLNG development outside

the Mediterranean region and a current
Mediterranean overview
10.1 China Case
China is one of the countries where the implementation of Small-Scale applications has been most
successfully developed; the entire value chain is present, from liquefaction, storage, regasification to retail
distribution. Its greatest growth has been generated by the change in the country's energy policies towards
clean air and reduce pollution.
Between 2010 and 2013, the liquefaction capacity increased more than 70%, from 2.5 mtpa to 8.9 mtpa,
generated by the need to replace fuels such as coal and fuel oil with natural gas mainly for power
generation.
Small scale applications are present in all sectors i) to transport the fuel by land or sea to isolated regions
ii) use of fuel for land and sea transport is entirely developed in all the country iii) use of fuel for power
generation iv) Bunkering v) Use of fuel in the industrial and residential sector. The development of the
SSLNG has been emphasized in regions without access to the gas pipeline network or isolated areas.
The SSLNG sources of supply for the LNG production are i) domestic production where liquefaction plants
are in the natural gas fields ii) from international imports feed by the regasification terminal by a pilot
truck station iii) from connected to the gas pipeline the network, where many small liquefaction plants
produce LNG. Recently some liquefaction plants are fed in unconventional gas fields.
In 2017, the country had more than 250 liquefaction facilities producing around 15 mtpa, 50% of the
world's LNG production by SSLNG plants, with more than 4,700 LNG refueling stations, and 1,800 CNG.
China accounts for a fleet of more than 200,000 LNG-powered trucks and is the fifth country of natural
gas-powered vehicles NGV with more than 6.0 million units.
Regarding bunkering, the Shanghai port area was declared emission-free in 2015; three more areas are
under study in the country, as of today 19 bunker barges are on request, and there is a requirement for
another 23 vessels.
The transportation of LNG by sea is carried out from large regasification plants, both to carry fuel to small
plants along the coast or to plants located in riverbanks, using 30,000m3 LNG barges. One example is the
Shanghai Wuhaogou peak shaving plant that receives these types of loads. In terms of market operators,
the leading players in the small-scale market in China are Kunlun energy subsidiary of PetroChina, Xinjiang
Guanghui, and local distributors.
Kunlun Energy has 24 SSLNG liquefaction facilities in the country, operating and in developments, which
account for approximately 6.0 mtpa of production capacity, 40% of the SSLNG production in China. The
company has the facilities in the major gas producing regions, northwestern (Xinjiang), northern (Inner

Mongolia, Shaanxi), and central areas (Sichuan, Hubei). It operates three receiving LNG terminals in Hebei,
Liaoning, and Jiangsu.
Figure 28 LNG Processing & Storage - Kunlun
Source: Kunlun Energy21
10.2 Nordic case

The genesis of the development of SSLNG in Norway goes back to the late eighties when the Norwegian
sovereign wealth fund with the support and encouragement from the Norwegian government encouraged
operators in the Norwegian North Sea to reduce SOx and NOx emissions from offshore gas fields. The
main driver was the implementation of energy policies to reduce emissions, switching the fuel to
natural gas.
The local legislations so introduced forced the Norwegian shipping companies involved in operating cruise
liners and fishing trawlers to switch away from heavy polluting fuels to natural gas, that started to flow
from the new gas fields.
In the following years, the Norwegian government also introduced a tax on CO2 emissions for offshore
field operators, and the combined effect of these policy decisions taken just paved the way for innovative
use of clean fuels in the Norwegian part of the North Sea.
In the following years, these legislations regarding the SOx and NOx caps led to the creation of Sulphur
Emission Control Areas (SECAs) which, now have universal acceptance in the form of the Emission Control
Areas (ECA). The Baltic Sea is one example of the first such ECAs coming into existence.
21 For more information www.kunlun.com.hk/html/

As a result, from those policies and the role of the Norwegian government, maritime transportation in
Norway switched to power the ships with LNG, today there are currently more than 50 ships running by
LNG, representing a market of 0.3 mtpa. The local industry also uses LNG as an alternative for fuel oil, gas
oil, and LPG.
Norway has two SSLNG liquefaction facilities, one in Risavika 0.3 mpta serving also as bunkering facility
and one in Kollness with a production capacity of 0.5 mtpa.
Gasnor, a Shell subsidiary, is Norway's downstream natural gas company, owns a widespread pipeline grid,
as well as CNG and LNG distribution from three separate production plants. Gasnor has 16 LNG trailers, 22
LNG terminals stations, and 2 LNG vessels.
Regarding the regasification capacity, Norway has two SSLNG facilities, Frederiksted, with a storage
capacity of 5,900 m3, built-in 2011, operated by Gasum, and has Bunkering and trucking loading services.
The second one, Mosjøen, has a 5,000 m3 storage capacity built-in 2007 operated by Gasnor, also offers
truck loading services. Many bunkering distribution facilities provide services all around the country.
Natural gas uses in Finland are mainly for the residential sector, cooking, and heating in Helsinki. SSLNG
applications in Finland began with the operation of the regasification terminals, Pori and Tornio Manga.
The first one commissioned in 2016 with a nominal capacity of 0.1 mtpa, and the second in 2018 with a
nominal regasification capacity of 0.4 mtpa. Allowing both bunkering services and truck loading pilot
stations granted the LNG market penetration for uses in the transportation sector, land, and maritime.
CNG and LNG filling stations have been deployed all around the country. The fuel in marine transportation
has also been applied in ferries companies as Viking lines that begun to run ferries powered with LNG, the
Viking Grace22 for example.
Sweden has two also SSLNG regasification terminals, Nynashamn and Lysekil the first one was
commissioned in 2011 with a nominal capacity of 0.4 mtpa is operated by AGA, offers bunkering services
and has a truck loading pilot station. The Lysekil terminal, which became operational in 2014 with a
regasification capacity of 0.2 mtpa, is operated by the Norway company Gasum. The facility offers
bunkering services and truck loading services. The port of Gothenburg also has an SSLNG distribution
facility that allows bunkering services; the current capacity is about 8,000m3.
Given the benefits that LNG brings to the region, a high number of shipowners are switching their strategy
and promoting the LNG use in their fleets; companies as ESL shipping, Furetank, and Fjord line are just a
few examples of this break. By instances, ESL Shipping, one of the leading cargo dry bulk carriers in the
Baltic region, shifts to power his dry cargo fleet with LNG, two of his ships are sailing with LNG the Viikki
and the Haaga, using the fuel allowed them to reduce emissions, and lower their fuel costs either23.
The three Nordic countries have built during the last years a reliable infrastructure to meet the
requirements of their demand. The LNG used as a maritime fuel, land fuel powering heavy truck vehicles,
and NGVs as well as utilized in some industries and power plants. They have a fleet of more than 67 fueling
22 For more information, https://www.vikingline.com/environment/viking-grace/

23 https://www.eslshipping.com/fleet/ships/m-s-viikki

stations for NGVs and more than 22 LNG fueling stations deployed all around the three countries, which
brings the LNG to isolated areas to industrial purposes, paper, and metals industries, for example.
The Swedish steel specialist SSAB introduced natural gas as fuel in one of the reheating furnaces a couple
of years ago. The fuel is supplied by tank trucks. Given that the LNG is a much more efficient fuel than
others, for industrial processes such as heating steel. Its flexible allows regulation towards the process
need and among the fossil fuels, has the lower CO2 emissions24.
Figure 29 Ferry powered by LNG - Grace
Source: Viking Lines
10.3 European Union case

Figure 26 and Table 3 below shows the key figures changes in the SSLNG market in the European Union
from 2017 and 2018, demonstrating how active EU member states have been in the SSLNG business.
Figure 30 Trends in European SSLNG Operational Activities 2017 -2018
Source: OME - GIE
24 https://www.gasum.com/en/insights/energy--industry/2018/ssab-uses-natural-gas-in-the-steel-industry/

Table 3 European Union Truck Loading

EUROPE EU
(103ton) 2019 2018 Y-Y( %)
Spain 831 719 16%

France 163 112 45%
Portugal 122 116 5%
Netherlands 68 53 27%
Belgium 47 26 81%
Poland 41 31 32%
United Kigdom 31 26 17%
Lithuania 5 0 4700%
Total 1307 1084 21%
Source: GIIGNL, 2020 Annual report.
From table 1, France, Portugal, and the Netherlands have joined the ranks of the European LNG
transportation leader Spain. This has been on the back of a phenomenal rise in the truck loading
operations, which has demonstrated the highest rise y-o-y of 81% in Belgium and Lithuania 4,700% loading
5,000 tons, with a total overall increase of 21% for the EU.
The latest map of the GIE indicates that 34 large terminals from the current base of 19 will have started reloading
operations over the next five years, creating opportunities to participate in global SSLNG trades.
With 37 SSLNG plants developing reloading operations, the EU will likely emerge as a vibrant local
market for SSLNG, with more significant optionality will come greater flexibility of supply chains and more
competitive pricing.
Rail loading facilities have projects for further development in 7 EU locations, and bunker ship numbers
will rise from 10 to 14. France will emerge as the country with the highest SSLNG installations.

11 SSLNG Applications in Mediterranean

Countries and Mediterranean Islands and
possible cooperation border countries.
11.1 Current Mediterranean overview
The SSLNG infrastructure in the Mediterranean region developed as the requirements exposed. Spain was
the first country to introduce the break bulk applications, transporting the LNG by tank trucks to isolated
areas where satellite plants deployed, allowing the use of industries and the residential market.
Most of the services are concentrated in the north shore of the region and have been in some cases
adapted from conventional LNG regasification facilities. Table 4 summarizes all the services and
applications available in the region.
Table 4 Mediterranean LNG Terminals - SSLNG Services
Reloading Small-scale Truck loading

Country Terminal FSRU ship loadings
Capacity (m3/h) Min ship size Capacity slot/d
Fos Cavaou No Yes Yes Yes
France 4000 5000 40
Fos Tonkin No Yes Yes Yes
1000 7500 34
Greece Revithoussa No Under Construction Under Study Under Construction
Israel Hadera Gateway Yes No No No
OLT LNG Toscana Yes No No No
Italy Panigaglia No FID 2020 FID 2020 FID 2020
Adriatic LNG - Rovigo No No No No
Jordan Al-Seikh Sabah LNG Yes No No No
Malta Delimara Yes No No No

Barcelona No Yes Yes Yes
Spain 4200 585/4000 52
Cartagena No Yes Yes Yes
7222 400/4000 52

Huelva No Yes Yes Yes

3690 2000 52
Sagunto No Yes No Yes
3000 36
Aliaga Izmir No No No Yes
100
Aliaga Yes No No No
Turkey
Marmara Ereglisi No No No Yes
75
FSRU Dortyol MOL Yes No No No
Source: GIE, OME
Spain: Spain is one of the examples of how LNG terminals have switched from a traditional model to an
LNG multimodal terminal. With more than four decades of experience in the SSLNG applications. So far,
the adaptation to more demanding market needs to be required to address several technical challenges
with innovative solutions regarding i) the management model, ii) maximizing efficiency at existing assets,
and iii) adding the capability to the classical value chain integrating new logistic services, reloading,
transshipment, truck loading, bunkering, and Small Scale ship loadings.
As per table 4 more than 43,300 LNG trucks (12.6 TWh) loaded in 2019, 16.0% growth year to year,
reaching more than 1,344 destinations, not only inside the country but also abroad. NGVs gas consumption
in Spain had a 12.0% growth year to year compared to 2018, reaching 2.15 TWh.25
In 2019, the demand for SSLNG for maritime transportation boosted from 900 ton in 2018 to 30,700 ton a
3,315% increase year to year, new services for TTS, and MMTS registered an increase of +0.052 TWh (+
339%) compared to the previous year. In total, 248 tankers discharge from truck to ships were recorded.26
France: As mentioned before, regarding the incoming works in the French terminals in the Mediterranean
and expansion of the truck loading capacity has been accomplished, doubling the annual number of truck
loadings. In France during 2019 more than 11,000 LNG Trucks (2.5 TWh) were loaded, 45.0 % growth year
to year27.
Italy: The actual LNG infrastructure in Italy, two offshore regasification terminals (Livorno FSRU Toscana
and Adriatic LNG), have operational difficulties for reloading small LNG carriers for re-export and bunkering
and cannot practically supply the inland consumers by trucks. The Italian onshore regasification terminal
Panigaglia, cannot either deliver LNG by trucks mainly because of substantial constraints in the local road
system. Therefore, the current Italian SSLNG north market depends on the imports by trucks from France
and Spain.
25 For more information www.enagas.com

26 Sourced from GIIGNL, LNG report 2020, www.giignl.com
27 Sourced from GIIGNL, LNG report 2020, www.giignl.com

Italy has emerged as a pioneer in the construction market of the LNG Trucks. The Italian LNG truck
production is the strongest among European countries with 2,000 LNG trucks sold by Iveco (up to April
2019) and a new total of 500 LNG trucks sold by Scania and Volvo. The country has deployed more than
45 operational LNG road stations, and the other 25 are under construction or in the authorization phase.
In terms of NGVs, Italy has been leading the way in Europe driven by the progress achieved by the national
gas industry and by the gas components sector.
Two small scale terminals are under construction in Italy. The first, expected to be operational in 2020,
Santa Giusta, in Sardinia island with a tank capacity of 9,000 m3 of LNG. The second, in Ravenna 20,000
m3 tank capacity, will be ready in 2021.
The Sardinian terminal will deliver the first natural gas to the island, currently not connected to the gas
pipeline grid. End users are the residential and industrial sectors, fuel for transportation CNG/LNG, and
power generation. In the future, also LNG bunkering could become attractive in Sardinia, due to the
intensive cruise and ferry traffic.
The Ravenna terminal will be dedicated initially to the SSLNG land market to the transportation sector,
and industry, the terminal will be able to load up to 60 tanker trucks per day, distributing the LNG in the
Padana Valley and the rest of Italy.
Turkey: Following the SSLNG transportation trends in Spain and France, Turkey also emerged deep in the
transportation sector, loading more than 382,000 tons in 2019, approximately 27,000 LNG trucks.
Turkey is one of the biggest gas markets in Europe with a gas consumption of around 50 bcm of annual
gas consumption, has 9 entry points both from the pipeline and from LNG.
Turkey operates four LNG conventional terminals, two FSRU, and two onshore terminals. The Marmara
LNG facility is located about 100 kilometers of Istanbul in the northern Marmara Sea with a storage
capacity of 5.9 mtpa, and a send out rate of 8.0 bcm/y. The plant has a truck loading pilot station allowing
75 trucks to charge in one day. The location of the terminal is well known for his industry development
that has persuaded the downstream investments.
The other onshore facility is in the province of Izmir has a storage capacity of 4.4 mtpa tons of LNG. Egegaz
operates the Izmir terminal has a send-out capacity of 6.0 bcm/y. The terminal equipped with a loading
truck pilot station capable to load up to 100 truck/d and begin deliveries in May 2009, the terminal is in an
industrial province, which allows the distribution to the retail and industrial sector.
Regarding the floating terminals, Turkey's first floating storage unit began operating in 2016 located in
Aliaga has a send-out capacity of 5.3 bcm/y. The second floating terminal is operated by BOTAS
commissioned in January 2018 in the Dörtyol district of southeastern Hatay province on the
Mediterranean coast, has a storage capacity of 263,000 cubic meters, and a send-out capacity of 20.0
bcm/y.
Turkish Small-Scale truck market has eight active players with 350 LNG trucks and nearly 2300 customers.
It serves end-users in the industry sector (chemistry and plastic, metal, and manufacturing works) in the
agriculture and residential sector with energy requirements between 300 MWh and a big industrial

customer of 300 GWh. Companies as Primalng28 and OMV29 are well known in the LNG transportation
Turkish market.
Malta: The Malta case, the project is a perfect definition of LNG to power, consists of an FSU Floating
Storage Unit, with a 125,000 m3 of LNG, a jetty will permanently moor the ship near the Delimara power
station. The unit will deliver the LNG, previously feed by LNG carriers by Ship to Ship transfer to an onshore
regasification plant, that will finally deliver the LNG regasified to a 400 MW power generation facility.
Gibraltar: The Gibraltar case is another SSLNG to power example, Gibraltar decided to switch from a diesel-
fueled power generation to 80 MW gas power plant, supplied by a small regasification and storage facility
with a capacity of 5000 m3 of LNG. The plant is operating since January 2019. Shell and Gasnor have led
the project.
Figure 31 Small Scale Regasification Facility Gibraltar
Source: HM Government of Gibraltar30
28 https://www.primalng.com/about-our-company/experience-with-lng
29 http://www.omv-gas.com.tr/natural-gas-solutions-en
30 For more information https://www.gibraltar.gov.gi/

11.2 SSLNG applications assessment in the Mediterranean

countries
Having established the global market drivers of SSLNG and the different applications the SSLNG must offer
to the region, adding the succeeding lessons explained above. We turn to the Mediterranean region and
assess the SSLNG possible applications that would probably be to apply in the area, and potential energy
cooperation between cross border countries that could have the interest to be developed from an
environmental and economic point of view.
The market development potential primarily drives growth in SSLNG in the region that individual member
countries may have to offer. As we have seen from the previous chapter, this is also a function of the
policy orientation towards greater use of gas and LNG to switch away from traditional fossil content fuels.
Additionally, beyond growth in the use of gas in electricity generation, this must be driven by increasing the
share of gas used in sectors beyond electricity towards industrial and transportation solutions.
a) Morocco
Moreover, 90% of Morocco energy mix corresponds to fossil fuels, sourced from the international market,
which submerges the country in a high external dependency in terms of energy security of supply, in 2017,
oil represented 62%, followed by coal 22 % and natural gas 5%. Thermal power plants generate 80 % of
electric power generation.
So far, given the penetration of natural gas into the energy mix is highly recommended the access to the
fuel would lead to the change of highly polluting and inefficient fossil fuels such as oil and coal to a cleaner
energy system. Applying some of the applications of the SSLNG mention above; would be highly attractive
both economically and environmentally, favoring the emissions reduction.
The country has several industrial centers around the cities of Fez, Meknes, Rabat, Casablanca, Safi,
Marrakech, and Agadir, where the use of natural gas as an industrial fuel would bring significant
advantages.
Considering the current scarce of gas pipeline infrastructure that the country has the following alternatives
are to be proposed
Small liquefaction facilities, as in the China case, could be laid in the Maghreb gas pipeline layout. The
small quantity facilities between 0.05 and 0.1 mtpa could feed the industrial regions, creating virtual gas
pipelines with a fleet of tank trucks to transport the fuel from the liquefaction facilities to the end-users'
market where some satellite plants.

The Tendrara natural gas field with a production capacity of 2 Million Sm³/d situated in Northeast of
Morocco, for which Sound Energy Morocco East Limited (SEM)31 Could also be a SSLNG solution, feeding
a SSLNG liquefaction facility in the field
Likewise, the installation of a CNG plant in the city of Tanger is proposed, where the gas could supply a
fleet of public service buses.
Regarding the fuel supply to power generation, the virtual pipeline route also gathers several thermal
electric power facilities powered from oil and coal that could make the switch to natural gas.
This kind of supply with higher demand requires other solutions via a chartered floating storage and
regasification unit (FSRU), that could help the storage and LNG supply to the thermal generation plants.
b) Algeria
One of the main gas producers in the world, per 2018 figures from the Algerian Ministry of Energy Algeria
produced 97 bcm32 of natural gas and, exported 51.4 bcm, both by pipeline and LNG. The internal demand
is well covered by a gas infrastructure network well developed, supplying all its internal needs through the
existing network.
Algeria have two LNG liquefaction plants, suppling fuel to the international market, the Mediterranean
region is one of its major markets, during 2018 and the plants produced 13.4 bcm.
The existing infrastructure allows the development of the SSLNG industry, as first steps, the adaptation of
these large liquefactions plants allowing the berth and loading of small vessels could be a solution for small
spots demand out of the country. Secondly, another SSLNG service that would apply in this case, would be
the to upgrade the terminals creating a bunkering pole in the area, where ferries and other ships powered
by LNG by instance could bunker. The adaptation of the plant to facilitate the loading of tank trucks can
allow the transportation of fuel to regions not connected to the network and to bunker other ships by TTS
or MMTS.
As far, the gas flaring management in Algeria continues to be a challenge. In August 2018 Sonatrach joined
the World Bank led initiative 'Zero Routine Flaring by 203033, according to the Bank figures, Algeria is the
fifth country to flare gas 34, and given the Algerian energy balance report produced by the Algerian Ministry
of Energy35 indicates that the gas flaring in 2018 was 2.9 bcm. In this sense, an assessment emerges to
recommend the applications of SSLNG solutions to transport those quantities through the deployment of
virtual gas pipelines where the end-user would take advantage.
31 For more information https://www.soundenergyplc.com/our-portfolio/asset-overview/morocco/greater-tendrara/

https://www.moroccoworldnews.com/2020/03/297658/morocco-grants-rights-to-sound-energy-for-tendrara-gas-export-
pipeline/
32 https://www.energy.gov.dz/Media/galerie/benational_2018-edition-2019_5dac85774bce1.pdf
33 https://www.worldbank.org/en/news/feature/2018/05/31/sonatrach-renews-commitment-to-reduce-flaring
34 http://pubdocs.worldbank.org/en/645771560185594790/pdf/New-ranking-Top-30-flaring-countries-2014-2018.pdf
35, https://www.energy.gov.dz/Media/galerie/benational_2018-edition-2019_5dac85774bce1.pdf

c) Tunisia
In Tunisia, the uses of SSLNG emerges as a solution to feed isolated areas not connected to the gas grid,
where residential, industrial, and commercial sectors are present.
One of the identified areas is composed of one city and 4 satellite villages. The weather is dry, hot in
summer (40°C), and cold in winter (5°C), which have peak demand issues in summer and winter. The peak
demand period is between October to April.
Small industries are deployed in the area and have no choice other than use LPG or gas oil to feed their
energy demand.
Regarding the residential market, the fuel employed for cooking is also LPG. However, the fuel for
heating could either be LPG or Kerosene or wood.
Given the peak demand problems in winter and summer, added to the LPG distribution difficulties,
especially in winter, natural gas appears as a solution and SSLNG applications to be the tool to address it.
Some options are available to study i) Construction of a gas pipeline connecting the isolated area to the
grid ii) SSLNG option as a virtual pipeline composed of a small regasification and storage facility, LNG land
transportation either by ISO containers or LNG trucks.
The LNG could be supplied or from a future LNG terminal or by a small liquefaction facility connected to
the grid or from a small scale barge.
The estimation cost is based on the current energy fuel LPG with a base calculation of 100-unit cost (UC)
where the fuel to the end-user customer. Other energy costs will be indexed to that base.
i. Pipeline option, the project consists of the construction of an 85 km pipeline with all the
infrastructures needed to be in operation (compressions stations, pig launcher and receivers,
regulation stations).
ii. The lay outcrosses more than 250 landowners, and the estimated construction period is estimated
at 24 months without delays. The cost of the pipeline will be 122,897 UC around 23% more
expensive than LPG, since both CAPEX and OPEX in the pipeline are higher.
iii. SSLNG option: Emerges as a virtual pipeline that includes a small regasification and storage facility,
LNG land transportation either by ISO containers or LNG trucks, the LNG been supplied or from a
future LNG terminal or by a small liquefaction facility connected to the grid or from a small-scale
barge. For the specific case studied above, a periodicity of 20 days is needed to provide LNG to the
city to avoid BOG that would increase pressure in the in-storage tank. The project construction is
between 12 and 18 months, depending on the availability of the storage and vaporization station
and ISO containers.
The comparison has shown that the energy cost, including all the infrastructures CAPEX and opex, is
around 96 UC. LNG is 4% cheaper than LPG and 27 % cheaper than the pipeline option. The difference
between LNG and gas pipeline comes mainly from the relatively low CAPEX of SSLNG, which was estimated
to be 10% of the pipeline CAPEX.

d) Libya
Libya has been one of the significant European oil and gas suppliers. The country has high hydrocarbon
reserves to be monetized. The energy scenario is based in hydrocarbons oil and gas, one of the challenges
that arise is to decrease the percentage of electricity generation per IEA data were in 2018, 71% oil and
28% by natural gas.
Natural gas can play an essential role in this regard, helping to increase the switch, and SSLNG can help to
transport the LNG.
On the other hand, the industrial sector can present attractive alternatives if it could modify its industrial
processes to natural gas. Large industrial complexes are on the coast, where a gas pipeline layout, the
installation of small liquefaction plants accompanied by satellite plants, and transport tank trucks could
be useful in those cases.
Today the Libyan power generation sector is fully managed by GECOL, which produces electricity through
15 thermal power plants. Installed capacity and population density are concentrated in Tripoli and the
Middle regions. At the same time, some areas in the south and southwest are isolated and are not
connected to the gas grid. Those locations with a small energy demand use oil and diesel to power supply
generators as a, requiring regular maintenance and supply of fuel to long distances.
Those cases, as exposed before, have the potential solution of a small scale virtual pipeline. Small
liquefaction or CNG facilities could be connected to the pipeline grid, generating LNG/CNG transported by
tank trucks or ISO containers to the isolated regions, where satellite plants would regasify the fuel for
power generation. Today more than 450 MW of small oil plants are running in the country.
Moreover, the country is facing during winter and summer electricity peak demand that is not able to be
managed, SSLNG peak shaving facilities would help to solve this issue.
e) Egypt
With a population density, close to 100 million people, Egypt is one of the most abundant hydrocarbon
consumers in Africa. It is also the third-largest oil producer in the continent and the seventh-largest gas
producer. It has two large liquefaction plants located in the north of the country, and one FSRU
infrastructure the BW Singapore armored in the Red Sea. In recent years, the country has imported LNG
from the international market to cover its internal demand, which has increases by 20% in the last five
years.
Egypt has a gas developed infrastructure with 762,036 km of a high, medium, and low-pressure and an
extensive oil pipeline network and refineries with high gas consumption. Regarding the 2019 power
generation, 86% was carried out by thermal plants, 83% with natural gas, and 17% with Fuel oil.
Due to its domestic gas production, the gas pipeline network has been successfully developed, and today
the country has a high penetration degree to natural gas in the population.
36 For more information www.gasco.com.eg

The SSLNG development in the country must be approached from another point of view since the
infrastructure is already in place, and a lack of competitiveness is evident.
Nevertheless, the country has an energy challenge to overcome, optimizing the management of the gas
flaring, that due to capacity restriction in the gas network, on some occasions, the production is forced to
burn the gas. In terms per quantities per unit per well, the amounts are small and adaptable to an SSLNG
distribution system; however, on an accumulated basis is almost 1.8 bcm/y. The unused gas burned in
torches emits enormous amounts of CO2 that must be managed37.
In this sense and considering the study that the EBRD has carried out in this regard, the areas of greatest
vulnerability are in the Northwest, West, and Suez areas, wherein exists a natural gas with the presence
of final consumers, industrial poles and thermal power plants. A recommendation of those quantities to
be evacuated through the deployment of virtual gas pipelines for both LNG and CNG is valuable. In these
cases, the liquefaction or compression plants will be supplied directly by the well in operation.
In this sense, the virtual pipeline requires a small-scale liquefaction plant or a compression station to
convert the gas to CNG, a fleet of LNG or CNG tanker trucks, and small-scale regasification plant allowing
the gas vaporization to the client's door. Besides, strategically peak shaving plants could be located since
the areas in question have oil thermal plants.
Regarding the development of bunkering activities, it is advisable to adapt the floating regasification
infrastructure of the BW Singapore with the new SSLNG services, for example, a jetty-less transfer of LNG,
to give access to the loading of small LNG ships. The FSRU can make LNG reloading's onto smaller LNG
carriers that can transport the fuel to isolated areas not connected to the gas pipeline network. The FSRU
can also work as a feeder to smaller bunkering vessels that are LNG-powered. This movement would create
the first LNG bunkering in the red sea.
Given the attractiveneSSLNG have power to isolated areas, a region in the southern coast of the Red Sea
appears to be isolated from the country's gas network. From Safaga to Shalateen, 480 km, where the
coastal cities of Al Kosair, Marsa Alam, and Baranis. The LNG supply through virtual gas pipelines is
recommended from two points of view.
i) Land transportation by tank trucks or ISO containers, supplied from liquefaction plants connected
to the gas pipeline network, where the following routes can be made:
The northern area, a virtual gas pipeline from Hurghada to Safaga 63 km. Is required a small
liquefaction and storage plant in Hurghada, a fleet of tank trucks to transport the fuel to the cities
where a regasification and storage plants will be located. Given supply access to the residential
and commercial sectors. Recently Al Kosair – Marsalm has been connected to the electricity grid.
The addition of the virtual pipeline would enhance the energy system.
37 For more information see https://www.ebrd.com/news/2017/egypt-joins-global-initiative-to-end-routine-gas-flaring.html

Associated Petroleum Gas Flaring Study for Egypt, Carbon Limits, EBRD, 2016

ii) Fuel transport by the Red Sea through small LNG barges. The supply comes from the FSRU feeding
LNG barges to transport the fuel to supply the cities, satellite plants would be situated in each
port, and a fleet of trucks would make the downstream distribution. The estimated maritime
transportation cost is in this case is between (0.4 - 0.6 $ / MMbtu)38.
f) Israel
The domestic production covers all its internal demand, initially from the Tamar field, and recently from
the operational Leviathan field, the country began exports to Jordan and Egypt. Has an FSRU capable of
delivering 2.5 bcm located near the port of Hadera, the send out is necessary in peak demand.
In Israel, the natural gas end-user market is composed of three sectors i) power generation market
accounted for 51% in 201839 ii) the industry is undergoing a transformation converting its facilities to run
with natural gas 49% iii) CNG as a transportation fuel has been recently launched as a new market
The gas distribution network is still under development, and the SSLNG is available to provide transport
solutions opening a possibility to the LNG to penetrate the transport sector feeding the heavy-duty
vehicles such as long-distance haulage trucks, producing the switch from diesel. In addition to the
transportation market, emerges the possibility of building LNG virtual distribution pipelines for the
industrial and tourism sector, not yet connected to the network. As explained before, LNG and CNG, having
a technical differential, the energy storage capacity in the tank for the LNG case is vastly greater since the
liquid compression of the fuel is higher. This effect produces efficiency and consequent benefit in fuel
consumption over long distances.
The LNG distribution poles in tank trucks can be in the high-pressure plants, where small liquefaction
plants could be installed and where the downstream distribution can supply the satellite plants. Likewise,
some LNG storage and refueling stations could also be deployed.
g) Jordan
The gas market in Jordan relies on the import supply both from pipeline and LNG. The pipeline flows are
coming from Israel and Egypt, while the LNG imports are coming from different origins, mainly the big LNG
producers, the domestic gas production is still low compared with the gas demand in the country.
The gas demand is based on the power generation; in 2019, 89% was produced by thermal gas plants. The
switch from oil power generation to gas has been practically executed. However, the gas penetration in
the industry sector is a challenge to make real, ended some industries begun to make the switch.
As seen in the previous cases, the gas distribution network is in the process of developing. The SSLNG can
offer different solutions to transport small volumes to isolated areas, as seen virtual pipelines can be
connected to the gas pipeline grid to transport the fuel to the demanded areas.
38 OME estimations
39 https://www.iec.co.il/en/ir/pages/default.aspx

The Jordan FSRU in the port of Aqaba has a send-out capacity of 3.8 mtpa, and remains a strategic energy
pole of flexibility for the country; peak shaving periods would generate higher demand scenarios that the
FSRU can aid. The FSRU can be upgraded to offer the new SSLNG services, LNG as a transport fuel can be
a solution in Jordan. An LNG distribution facility can be installed in the port connected with a cryogenic
line to the ship allowing the refueling to tank trucks or LNG powered heavy-duty long-distance haulage
trucks.
h) Turkey
The gas market in Turkey is, as mentioned before, well developed with a robust infrastructure deployed
all around the country.
However, the lessons learned in both Northern Europe and China suggest that specific SSLNG applications
can be successfully applied in these types of mature markets.
As a first measure and given its geographical location, in addition to the heavy traffic of ships and ferries,
the Istanbul area does not have an LNG bunkering supply yet, as we have seen, the development of the
following alternatives is recommended:
i) Installation of a small LNG distribution plant imitating the Gothenburg LNG distribution plant
would be suitable. This project will require an LNG storage and distribution plant as well as a
cryogenic distribution line.
ii) It is recommended to make the upgrade in the existing onshore infrastructures Marmara and
Aliaga plants to allow the new small-scale LNG services to operate. For instance, a bunkering
service allowing to load small LNG barges up to 30,000m3, adapting the actual jetty or adding a
new loading arm, and the appropriate mooring equipment to permit the loading and unloading of
small LNG ships.
iii) Additionally, another possibility is to transform the infrastructure into enabling the bunkering
supply by Transport to Ship TTS and Multi Transport to Ship.
iv) Finally, small liquefaction facilities could be connected to the high-pressure grid to generate LNG
in small volumes; the downstream distribution could be done by LNG trucks to regasification
satellite plants.
i) Greece
The truck loading station in the Revithoussa LNG plant has been in the study since 2015 and belongs to
the ten years development DESFA.
The project is currently under construction, will allow the supply in areas where the transmission system
has not been developed yet, mainly the west part of Greece. The project includes a one-point truck loading
pilot station with a capacity of 50 m3 and a loading rate of 100 m3/h, which means a loading rate of 48
trucks/day. The fuel will be transported to regasification satellite plants, which will allow the penetration
of the gas market in those areas without connection to the gas grid. The estimated cost of the project is
6.0 M€.

The construction of a brand-new small-scale jetty is recommended. The project is under study and is part
of the framework work of the Poseidon MED II Project39. The Poseidon Project gathers 19 stakeholders
from 5 countries (Italy, Greece, Cyprus, Slovenia, and Croatia) and it aims to develop the LNG as a marine
fuel in the Eastern Mediterranean region, including all the marine chain value from the supply to the
distribution and bunkering, the cost of the project is at €30 Million40.
Given the lack of bunkering services in the area, the project emerges as a solution to feed the fuel demand.
Two alternatives shown as predominant to adapt the Revithoussa terminal to the new SSLNG service, i)
The construction of a new jetty, and ii) The addition of a SSLNG loading arm in the current jetty that will
allow operating the SSLNG loading ships from 1,000 m3 to 20,000 m3, where a simultaneous refueling of
two ships would be feasible.
The purpose is from one side to facilitate bunkering services to all ships in the coastal area, or in the sea
to the port of Piraeus, and to develop a feeder ship capable to supply fuel to SSLNG storage and
regasification facilities where needed in the Greek coast including the islands or abroad.
j) Mediterranean Islands (Greek islands, Malta and Cyprus)

The energy supply in the Islands has always been a challenge, requiring in some of the cases a low demand.
The LNG supply to the islands is a possible solution that comes in hand with a bunkering hub development
in the region.
Considering the availability of the supply and a high infrastructure penetration in the area, the figures to
reply to the Malta and Gibraltar projects could be developed in the Aegean and Mediterranean islands.
Greek islands
Greece has more than 2500 islands in the Aegean, and the Mediterranean Sea, just a few numbers of them
are inhabited. The population on the island accounts for more than 10% of the total population. Four
Islands, Crete, Rhodes, Corfu, and Lesvos are the most inhabited. Tourism on the island has great attraction
where in summer, the population can, in some cases, be doubled or tripled as well as energy
consumption41.
The power generation is based in thermal plants, powered by oil, diesel, and heavy fuel oil, the total
thermal installed capacity is 1808 MW, per the Hellenic Electricity Distribution Network Operator S.A
HDNO42.
The SSLNG approach will be divided into three different groups as per the installed capacity in the Islands.
40 For further information about Poseidon MED II LNG Bunkering Project, please visit https://www.poseidonmedii.eu
41 For more information, “An Overview of the Greek Island´s Autonomous Electrical Systems: Proposals for a suitable Energy
Future” Nikolas Katsoulakos.
42 Hellenic Electricity Distribution Network Operator S.A HDNO.

Table 5 Thermal Oil Capacity - Greek Islands

Oil Thermal Oil Thermal
Island Island
Capacity (MW) Capacity (MW)
Crete 796.8 Symi 8.6

Rhodes 232.9 Skyros 8.5
Kos-Kalymnos 133.7 Serifos 6.7
Lesvos 94.9 Amorgos 6.2
Paros 93.7 Kythnos 5.9
Chios 77.8 Astypalea 3.8
Thira 75.1 Megisti 1.7
Mykonos 67.5 Anafi 1.2
Samos 49.6 Dosnoussa 1.0
Syros 39.3 Agios 0.8
Lemnos 23.6 Erikoussa 0.8
Milos 23.0 Othoni 0.7
Karpathos 16.5 Agathonissi 0.6
Ikaria 15.9 Gavdos 0.4
Sifnos 11.5 Antikyhtira 0.4
Patmos 8.9 Arkioi 0.4
Total 1808 MW
Source: HDNO
Group 1
Crete island has the largest installed capacity of 796 MW, the highest demand, and is the furthest island
from the continent. There are several energy supply projects classified as PCI to supply energy to the island,
a submarine cable connection with the mainland.
On the other hand, and given the potential demand that the island has, the DESFA project to build a
400MW CCGT, 60% energy efficiency to support the continental connection, also, the installation of a
125,000m3 FSRU unit is also planned. It is recommended that the future design of the facility includes the
SSLNG services for bunkering and truck loading to supply the surrounded islands.
Group 2
Gathers the Islands that have installed capacity between 80 MW and 250 MW. Rhodes island 233 MW,
Kos Kalymno 134 MW, Lesvos 95 MW and Paros 94 MW. It is recommended to switch from oil to natural
gas turbines if the useful life of the plant allows the technical change imitating the transformation of the
Jamaica plant.

The island of Rhodes, being the one with the highest demand, may need either floating storage or a storage
and regasification plant.
Group 3
The third model is where plants have less than 80 MW, 27 of them have a capacity of less than 10MW. As
there are so many islands, this model requires a storage cluster, and several feeders that can be supplied
from Revithoussa and other infrastructures in the region could be in the focal center of the archipelago,
provided by small barges.
Savings in fuel cost can be estimated to be around $50 Million per year and the reduction of 7.5 Mton of
CO2e by increasing the use of LNG as a supply fuel.
Malta
Considering the existing infrastructure, the SSLNG can open the possibility of fuel distribution to the
industrial and tourist sector. The installation in the regasification plant of a loading LNG unit to tank trucks
would allow the delivery of the fuel to small satellite plants at the doors of the end costumers, industries,
or hotels, for example.
Cyprus
Among other projects in Cyprus, a possible development in the country is a large LNG liquefaction facility
triggering the international market and monetizing gas from the Aphrodite field and other fields in the
region. In its design, it is recommended to have the necessary facilities for the development of the SSLNG
industry, loading truck pilot stations, and jetty for bunkering activities.

12 SSLNG Applications and possible

cooperation in some border countries.
The energy cooperation development between the countries in the Mediterranean region is a challenge
that must be faced. The energy interaction between neighboring countries must become an opportunity
for the development of possibilities that must contribute to the sustainable and efficient development in
the region, collaborating to reduce emissions and carbon exposure. Energy cooperation between the two
shores of the Mediterranean must remain a priority; in this sense, the SSLNG, a tool for development and
union, small-scale applications, must allow flows between both shores and be considered as potential
development.
In this sense, from a technical and commercial point of view, the penetration of SSLNG between countries
must emerge as a development opportunity. The use of LNG in both maritime and land transportation can
benefit and serve as a tool for the development of common projects. In this way, for example, the
transport of small quantities of LNG from the Skikda plant in Algeria to northern Tunisia, where a virtual
gas pipeline can be developed, would help the region to progress. Likewise, the energy cooperation
between Algeria, Morocco, Egypt, and Libya should be an impulse towards an integrated market that
allows the flow of gas between the countries, being a tool for progress and management in terms of
security of supply.

13 Market opportunity mapping

framework
As shown, the SSLNG growth in the region has significant potential. Must be primarily driven by the market
development potential that each country may have to offer as a function of the policy orientation towards
greater use of gas and LNG, switching away from coal and oil fuels reducing carbon emissions, and bringing
clean air. Additionally, beyond the growth in the power sector, other LNG uses may appear in the equation,
as a fuel for maritime and terrestrial transportation bringing downstream distribution and flaring
management solutions increasing the share of gas used in those sectors. It would be beneficial if these
applications were considered to improve populations quality life.
To address a potential matrix attractiveness, we have developed a set of qualitative criteria that allowed
us to map the region and to identify the opportunities exposed in the SSLNG application assessment in the
Mediterranean region.
The market attractiveness mapping framework is a simple 2x2 matrix that helped identify the critical
regions from the 2030 standpoint growth. The rationale for choosing 2030 as the year drives by the fact
that most countries, particularly in the south Mediterranean region, are in the early stages of considering
developing dedicated policies towards SSLNG.
On the X-axis, we have "Ability and Preparedness to Execute Projects up to 2030," which is up of three
underlying criteria i) Existence of infrastructure and ii) Degree of supply and iii) Evidence of interest in
developing projects in the region.
Where LNG infrastructure already exists, and is operational, the assessment tends to be more favorable
compared to regions where existing LNG infrastructure is absent.
On the Y-axis, we have "Market Potential and Policy Preparedness in the next 10 years," which has a
slightly better degree of quantification. The current size of the energy market in the country concerned,
an assessment of the level of fossil intensity share of fossil fuels as a percentage of total energy
consumed.
We find that there is a high degree of correlation in the policy stance and, indeed, the frequency of
statements in favor of SSLNG in countries with high exposure to fossil fuels.
We find that there is also similarly a strong correlation between the interest and activity development in
SSLNG, where isolated areas appear to be reenergized, and bunkering facilities are to be required by the
market. We also find that there is more significant evidence of SSLNG activity in the northern rim
Mediterranean countries.

Figure 32 Market Attractiveness Matrix
Source: OME
The result of this assessment shows that even a clear development trend in the northern Mediterranean
countries towards the adoption of SSLNG applications in their energy systems. However, the highest
market opportunities arise in the southern shore of the region, where Egypt, Israel, Jordan, Morocco and,
Tunisia emerge as the markets to implement the SSLNG applications.
The Northern shore of the region, with the evident tradition in the LNG industry, as Spain and France
have already begun to develop their SSLNG markets upgrading the LNG facilities.
Greece, Turkey, and Italy are the three countries that show the most promise progress in the period.
Greece is taking the SSLNG path with a huge bunkering prospect very seriously, LNG to power potential
towards the adaptation of Revithoussa terminal and the project implementation of two FSRUs one in
Alexandroupolis and one in Crete, the switching for power generation and supply in the islands still a
challenge with high SSLNG services penetration potential in the rest of the country.
Italy is already constructing two SSLNG terminals in Sardinia and Ravenna, with maritime and land
transportation opportunities to face.

Turkey is undergoing activities in the LNG large industry bringing more opportunities to develop the
maritime and land transportation, the creation of a bunkering solution must be in the market target of
the country in addition to the gas penetration in the industry.
Egypt and Israel have great potential opportunities for SSLNG penetration. In Egypt, the attraction relies
on the need to optimize the gas flaring, bunkering development in the north of the country, upgrading
the existing plants. Being adapted, the FSRU can provide new SSLNG services to the market. The degree
of penetration of oil in the electricity generation market is high enough to continue to change the trend,
especially in small plants.
In Israel and Jordan, the potential emerges as the market for LNG as fuel for land transportation. In Israel,
several tenders have been issued by the authorities to attract the market and motivate the interest to
develop the CNG and LNG market. The SSLNG potential added to the increasing degree of natural gas
industrialization in the countries makes no other than raise the possibilities to develop virtual pipelines
to isolated areas that must be considered as a solution in the short and medium-term.
As for Algeria, the SSLNG services would help to manage the gas flaring as well as in Egypt. As for Tunisia
and Morocco, the industry development may have medium to slow grade to be developed given the
challenges that the countries currently are facing with the lack of supply.
In Tunisia, the potential for the creation of virtual gas pipelines is high, given the isolated areas and the
high concentration of generation plants with LPG and oil. The project to install a floating regasification
unit is not yet a reality, but it would be a boost for the development of the SSLNG in the country. In
Morocco, the degree of penetration of electricity generation with oil and coal is high, making the
transformation more and more ambitious, the new field discoveries make the future of the gas market
and the SSLNG increasingly attractive.
Finally, the SSLNG industry development in Libya may be slower than in the other countries, given the
varied nature of hurdles that the country is currently facing.

14 Conclusions
It is a fact that the SSLNG is a continuously growing market, worldwide and in the Mediterranean region,
in which its demand increases promoted by both the environmental and economic requirements, a stable
regulatory framework must accompany that.
SSLNG projects are, in many cases, tailored projects, diverse and peculiar. Their costs and technology are
being adapted to the requests of the system to offer reliable and safe products.
The attractiveness of SSLNG and its rapid growth and maturity is attributable to the adoption of LNG as
the fuel of choice, ensuring the availability of clean air and a sustainable environment the world over.
The role of natural gas and LNG as the cleanest burning fossil fuel with no residual particulate matter and
SOx and NOx limits well below those prescribed in the IMO legislation as a considerably lower level of
carbon emissions has consolidated the position of LNG as prime maritime fuel. The applications are to be
solutions also in many sectors, land transportation, power generation, industry, and retail.
The market attractiveness matrix showed that the SSLNG has a considerable potential penetration in the
southern shore of the Mediterranean. The assortment of different solutions allows the choice of different
possibilities that once developed would bring added value to the growth and integration of the gas
market in the region i) Reducing carbon emissions ii) Optimizing the burning of natural gas in the oil fields
with associated gas, providing a monetization tool iv) Becoming the substitute fuel for oil and coal in the
electricity generation market v)Transporting the LNG by sea or land to isolated regions where energy
consumption is linked to other fossil fuels. All this offers a significant contribution to improving local air,
enhancing the population's quality lives.
In the northern shore, the SSLNG is a reality, a growing market, driven by the existence of large LNG
infrastructures that have been transformed to offer the SSLNG new services. The presence of more and
more LNG refueling stations in Europe corresponds to a high market penetration indicator for both the
transportation of the fuel and for its use itself in heavy-duty and natural gas vehicles. The Development
of an LNG bunkering market continues to be a challenge, gaining more and more strength in the
Mediterranean linked to the IMO regulation of non-use of fuels for maritime transport with a sulfur
content greater than 0.5%.
In this sense, the UfM gas platform emerges as a promoter of a structured and regional dialogue platform
allowing the gradual development of a more secure, transparent, and integrated gas market where the
SSLNG applications can provide different kinds of solutions and improvements to the stakeholders. The
development of energy cooperation in the region must be addressed as an opportunity tool to contribute
to sustainable and efficient development in the region, allowing the SSLNG applications to collaborate to
reduce emissions and carbon footprint.

An Assessment of Small Scale LNG Applications in The Mediterranean Region

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

An Assessment of Small Scale LNG Applications in The Mediterranean Region

Uploaded by

Copyright:

Available Formats

DRAFT V1 – PLEASE DO NOT CIRCULATE OR CITE

2 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

UfM Gas Platform | 3

2 Overview of the LNG Market and growth

3 Growth of the SSLNG business in 2019

4 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

UfM Gas Platform | 5

Figure 1 Defining SSLNG and comparison with “standard” LNG

5 SSLNG follows the LNG main drivers and

6 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

• Cheap, abundant and growing supply of gas globally

UfM Gas Platform | 7

6 LNG and Small-Scale Value LNG Chain

8 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

Figure 3 SSLNG Value Chain Integration with Standard LNG

Small Onshore Truck /

Bunkering LNG Rail

UfM Gas Platform | 9

Source: OME estimations

10 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

7.1 SSLNG liquefaction

UfM Gas Platform | 11

12 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

7.2 SSLNG regasification

5 For more information https://www.kobelco.co.jp/english/products/ecmachinery/lng/orv.html

UfM Gas Platform | 13

Figure 7 Submerged Combustion Vaporizers

Source: Linde Engineering6

Source: Chicago Power & Process, Inc7

14 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

7.3 SSLNG satellite stations plants and storage

UfM Gas Platform | 15

We briefly examine each of these new end user market segments:

16 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

8.1 SSLNG for Power Generation.

UfM Gas Platform | 17

Source: Wartsila - Small- and Small- and medium-scale LNG terminals

8 For more information, www.jpsco.com/gas-is-here-jps-announces-arrival-of-natural-gas-for-bogue-power-plant/

18 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

8.2 LNG as fuel for Maritime transportation - Bunkering

UfM Gas Platform | 19

LNG is transferred from Bunker Vessel using pressure differentials; if speed is

Truck to Ship transfer using pressure differentials; inherent limitations due to

20 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

A brief description of how bunkering operations are carried out:

11 For more information www.gasnor.no

UfM Gas Platform | 21

8.3 LNG as a fuel for land transportation

8.4 LNG fuel transportation to isolated areas, no connected to

22 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

Figure 14 LNG Transportation by Truck

Source: JAPEX infrastructure & Utility12

Figure 15 IVECO LNG Truck, and LNG Refuelling Statton

Source: IVECO13 and Gasrec14

12 For more information consult https://www.japex.co.jp/english/business/japan/lng.html

UfM Gas Platform | 23

Figure 16 LNG Truck storage tank

Figure 17 LNG ISO Container loading in the truck

Source: LNG Global15

15 For more information, https://www.lngglobal.com/iso-lng-containers

24 | AN ASSESSMENT OF SMALL SCALE LNG APPLICATIONS IN THE MEDITERRANEAN REGION

Figure 18 Transportation by rail

Source: JAPEX infrastructure & Utility