Small-scale Liquefied Natural Gas processing plants undergoing high growth thanks to increasing use of LNG to power large ships
The liquefied natural gas (LNG) processing sector is, compared to other energy refinery sectors, disproportionately populated by small enterprises. With reduced production capacities but far greater mobility and increased speed of construction, small processing plants are undergoing rapid growth in numbers.
The US Pipeline and Hazardous Materials Safety Administration has announced that 160 LNG facilities have been built or given clearance in the US alone since the beginning of 2018. Of these, only 4 are large-scale facilities.
These small, dynamic enterprises are now turning to servicing niche markets. Supplying IMO-regulated bunker fuel to large oceangoing ships is one such venture into a new market.
Small LNG facilities can be erected quickly and cheaply when compared to large-scale competitor plants. The low cost and decreased timeframe for construction are making these smaller facilities attractive suppliers of bunker fuel for shipping companies.
Shipping companies need multiple source sites and they often require location changes at short notice. LNG is therefore an increasingly popular choice of energy for powering larger ships. Using LNG to power large ships also produces no SOx emissions and a 75%-85% reduction in NOx, with negligible particulate emissions.
The growing use of LNG in vessels that have hitherto used only heavy fuel oil comprises a critical growth opportunity for small processing plants, who fit the bill perfectly.
Customers in the marine industries for whom a switch to LNG would be viable will be informed of further developments by us. We are always expanding our supplier network and we have an impressive existing portfolio of small-scale LNG plants from across the world.