LNG TRANSPORTATION AS THE LATEST MODERN FAST-GROWING MARITIME BUSINESS AND ITS “PIVOT TO THE EAST”

Sergei V. Pesterev

Admiral Nevelskoy Maritime State University, Vladivostok

Nikolai I. Pereslavtsev

Admiral Nevelskoy Maritime State University, Vladivostok

Ivan I. Nadein

The Russian Presidential Academy of National Economy and Public Administration

(Presidential Academy, RANEPA), Moscow

Abstract:

Special attention is paid to the safety of the transport process, the analysis of the structure of gas carriers, the latest shipbuilding market, and the maintenance of voyage charter for these high-tech types of vessels. The need to adopt an import substitution program in the field of maritime business is discussed and proved for practical training of skilled professionals who will be involved in Russian efforts to expand

LNG export

Keywords: maritime business, global LNG market, supply routes, sea transportation technology, mutually beneficial cooperation, gas carrier, port, inter-modal transportation, LNG extraction, methane, butane

As it is well known, the state with the large number of strategic natural deposits on its territory has economic advantages.

Russia has the largest (24.4%) natural gas reserves in the world, or approximately 49.541 trillion cubic meters. Liquified Natural Gas (LNG) is a pure colorless and odorless liquid obtained from natural gas, mainly methane (other components are: ethane, propane, butane, pentane and a small percentage of nitrogen), artificially liquefied by cooling to -160 ° C (its boiling point) for easy storage and transportation. Russia’s first LNG processing plant as a part of Sakhalin-2 project near settlement Prigorodnoye in the south of Sakhalin had been put into operation in 2009 [1]. LNG is liquefied at first at an LNG plant, then loaded onto a gas carrier. Upon arrival at the port of destination it is unloaded into a regasification LNG-terminal, from where it is delivered to the consumer.

In Russia Liquefied Natural Gas is considered as the most preferable and promising export technology. The fact is that last year some gas pipelines have been blocked due to international situation, the other ones have been destroyed. Therefore, today the item of LNG marine transportation is of great importance [2].

LNG largest consumers are: Japan – 32% of global demand, China and South Korea each – 14 % of global demand. Over the past 10 years, global LNG trade has doubled (including in the Far East and the city of Vladivostok) and amounted to 404 million tons in 2023. In Japan, in 2023, the total capacity of LNG terminals was 276 billion m3/year.

The LNG largest exporter are the United States – 86 million ton. Transportation is possible in 2 ways: by pipelines, sea vessels, railway and motor transport. Therefore, special ships have appeared for the delivery of LNG: 1) in bulk 2) in tank containers.

Technology of LNG marine transportation includes the following stages:

1)The gas is cooled to a temperature of -163 ° C and compressed 600 times in special plants;

2) LNG is transported by marine gas carriers to ports;

3) At special “regasification terminals”, LNG is converted back into a gaseous form for delivery through pipes to final users.

This method of transportation becomes cost-effective at distances exceeding 2200 nautical miles.

LNG components evaporation is a main problem which LNG market participants meet [3]. During the sea passage the difference between environment temperature and LNG causes the permanent regasification (vaporization) of methane to gaseous aggregate state. When the gas components evaporate, the LNG composition not only changes and does not always correspond to the declared one. Ships arrive at ports with less LNG compared with the volume obtained during the load — losses reach about 0.15% per day.

The first specialized vessel Methane Princess was constructed in 1964 and used for LNG transportation from Algiers to Great Britain. There were two such gas carrier ships, they were able to transport LNG up to 700 thousand tons a year. By the middle of 2023 the number of LNG tankers in the world had reached 641. Analysts say that in the near future that number will keep going up.

How it all works

LNG carriers are designed quite simply. Their main component is cargo tanks, that is, containers in which liquefied gas is transported. They are constructed from several layers, since the installation must keep an increased pressure and temperature of about t -160 degrees(Celcius) to maintain the gas in a liquid state.

(End of introductory fragment)