IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v182y2016icp154-163.html
   My bibliography  Save this article

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

Author

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

Abstract

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

Suggested Citation

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

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261916312302
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2016.08.130?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tsatsaronis, G. & Morosuk, T., 2010. "Advanced exergetic analysis of a novel system for generating electricity and vaporizing liquefied natural gas," Energy, Elsevier, vol. 35(2), pages 820-829.
    2. Aspelund, Audun & Gundersen, Truls, 2009. "A liquefied energy chain for transport and utilization of natural gas for power production with CO2 capture and storage - Part 2: The offshore and the onshore processes," Applied Energy, Elsevier, vol. 86(6), pages 793-804, June.
    3. Kumar, Satish & Kwon, Hyouk-Tae & Choi, Kwang-Ho & Lim, Wonsub & Cho, Jae Hyun & Tak, Kyungjae & Moon, Il, 2011. "LNG: An eco-friendly cryogenic fuel for sustainable development," Applied Energy, Elsevier, vol. 88(12), pages 4264-4273.
    4. Liu, Yanni & Guo, Kaihua, 2011. "A novel cryogenic power cycle for LNG cold energy recovery," Energy, Elsevier, vol. 36(5), pages 2828-2833.
    5. Aspelund, Audun & Gundersen, Truls, 2009. "A liquefied energy chain for transport and utilization of natural gas for power production with CO2 capture and storage - Part 1," Applied Energy, Elsevier, vol. 86(6), pages 781-792, June.
    6. Tan, Siah Hong & Barton, Paul I., 2015. "Optimal dynamic allocation of mobile plants to monetize associated or stranded natural gas, part I: Bakken shale play case study," Energy, Elsevier, vol. 93(P2), pages 1581-1594.
    7. Koku, Oludolapo & Perry, Simon & Kim, Jin-Kuk, 2014. "Techno-economic evaluation for the heat integration of vaporisation cold energy in natural gas processing," Applied Energy, Elsevier, vol. 114(C), pages 250-261.
    8. He, T.B. & Ju, Y.L., 2014. "A novel process for small-scale pipeline natural gas liquefaction," Applied Energy, Elsevier, vol. 115(C), pages 17-24.
    9. Remeljej, C.W. & Hoadley, A.F.A., 2006. "An exergy analysis of small-scale liquefied natural gas (LNG) liquefaction processes," Energy, Elsevier, vol. 31(12), pages 2005-2019.
    10. Thomas, Sydney & Dawe, Richard A, 2003. "Review of ways to transport natural gas energy from countries which do not need the gas for domestic use," Energy, Elsevier, vol. 28(14), pages 1461-1477.
    11. Khalilpour, Rajab & Karimi, I.A., 2012. "Evaluation of utilization alternatives for stranded natural gas," Energy, Elsevier, vol. 40(1), pages 317-328.
    12. Xu, Xiongwen & Liu, Jinping & Cao, Le & Pang, Weiqiang, 2014. "Automatically varying the composition of a mixed refrigerant solution for single mixed refrigerant LNG (liquefied natural gas) process at changing working conditions," Energy, Elsevier, vol. 64(C), pages 931-941.
    13. Xu, Xiongwen & Liu, Jinping & Jiang, Chuanshuo & Cao, Le, 2013. "The correlation between mixed refrigerant composition and ambient conditions in the PRICO LNG process," Applied Energy, Elsevier, vol. 102(C), pages 1127-1136.
    14. Aspelund, Audun & Tveit, Steinar P. & Gundersen, Truls, 2009. "A liquefied energy chain for transport and utilization of natural gas for power production with CO2 capture and storage - Part 3: The combined carrier and onshore storage," Applied Energy, Elsevier, vol. 86(6), pages 805-814, June.
    15. Aspelund, Audun & Gundersen, Truls, 2009. "A liquefied energy chain for transport and utilization of natural gas for power production with CO2 capture and storage - Part 4: Sensitivity analysis of transport pressures and benchmarking with conv," Applied Energy, Elsevier, vol. 86(6), pages 815-825, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qi, Meng & Park, Jinwoo & Lee, Inkyu & Moon, Il, 2022. "Liquid air as an emerging energy vector towards carbon neutrality: A multi-scale systems perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    2. Park, Hyunjun & Lee, Sanghuk & Jeong, Jinyeong & Chang, Daejun, 2018. "Design of the compressor-assisted LNG fuel gas supply system," Energy, Elsevier, vol. 158(C), pages 1017-1027.
    3. Uwitonze, Hosanna & Chaniago, Yus Donald & Lim, Hankwon, 2022. "Novel integrated energy-efficient dual-effect single mixed refrigerant and NGLs recovery process for small-scale natural gas processing plant," Energy, Elsevier, vol. 254(PA).
    4. Sanghyun Che & Juwon Kim & Daejun Chang, 2021. "Liquid Air as an Energy Carrier for Liquefied Natural Gas Cold Energy Distribution in Cold Storage Systems," Energies, MDPI, vol. 14(2), pages 1-23, January.
    5. Davor Dujak, 2017. "Mapping Of Natural Gas Supply Chains: Literature Review," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 17, pages 293-309.
    6. Jamin Koo & Soung-Ryong Oh & Yeo-Ul Choi & Jae-Hoon Jung & Kyungtae Park, 2019. "Optimization of an Organic Rankine Cycle System for an LNG-Powered Ship," Energies, MDPI, vol. 12(10), pages 1-17, May.
    7. Ning, Jinghong & Sun, Zhili & Dong, Qiang & Liu, Xinghua, 2019. "Performance study of supplying cooling load and output power combined cycle using the cold energy of the small scale LNG," Energy, Elsevier, vol. 172(C), pages 36-44.
    8. Kim, Juwon & Noh, Yeelyong & Chang, Daejun, 2018. "Storage system for distributed-energy generation using liquid air combined with liquefied natural gas," Applied Energy, Elsevier, vol. 212(C), pages 1417-1432.
    9. Ancona, M.A. & Bianchi, M. & Branchini, L. & De Pascale, A. & Melino, F. & Mormile, M. & Palella, M. & Scarponi, L.B., 2018. "Investigation on small-scale low pressure LNG production process," Applied Energy, Elsevier, vol. 227(C), pages 672-685.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guo, Hao & Tang, Qixiong & Gong, Maoqiong & Cheng, Kuiwei, 2018. "Optimization of a novel liquefaction process based on Joule–Thomson cycle utilizing high-pressure natural gas exergy by genetic algorithm," Energy, Elsevier, vol. 151(C), pages 696-706.
    2. Ancona, M.A. & Bianchi, M. & Branchini, L. & De Pascale, A. & Melino, F. & Mormile, M. & Palella, M. & Scarponi, L.B., 2018. "Investigation on small-scale low pressure LNG production process," Applied Energy, Elsevier, vol. 227(C), pages 672-685.
    3. Khan, Mohd Shariq & Lee, Sanggyu & Rangaiah, G.P. & Lee, Moonyong, 2013. "Knowledge based decision making method for the selection of mixed refrigerant systems for energy efficient LNG processes," Applied Energy, Elsevier, vol. 111(C), pages 1018-1031.
    4. Wang, Xucen & Li, Min & Cai, Liuxi & Li, Yun, 2020. "Propane and iso-butane pre-cooled mixed refrigerant liquefaction process for small-scale skid-mounted natural gas liquefaction," Applied Energy, Elsevier, vol. 275(C).
    5. García, Ramón Ferreiro & Carril, Jose Carbia & Gomez, Javier Romero & Gomez, Manuel Romero, 2016. "Combined cascaded Rankine and direct expander based power units using LNG (liquefied natural gas) cold as heat sink in LNG regasification," Energy, Elsevier, vol. 105(C), pages 16-24.
    6. Baccanelli, Margaret & Langé, Stefano & Rocco, Matteo V. & Pellegrini, Laura A. & Colombo, Emanuela, 2016. "Low temperature techniques for natural gas purification and LNG production: An energy and exergy analysis," Applied Energy, Elsevier, vol. 180(C), pages 546-559.
    7. Li, Gang & Li, Xiao-Sen & Yang, Bo & Duan, Li-Ping & Huang, Ning-Sheng & Zhang, Yu & Tang, Liang-Guang, 2013. "The use of dual horizontal wells in gas production from hydrate accumulations," Applied Energy, Elsevier, vol. 112(C), pages 1303-1310.
    8. Li, Xiao-Sen & Yang, Bo & Zhang, Yu & Li, Gang & Duan, Li-Ping & Wang, Yi & Chen, Zhao-Yang & Huang, Ning-Sheng & Wu, Hui-Jie, 2012. "Experimental investigation into gas production from methane hydrate in sediment by depressurization in a novel pilot-scale hydrate simulator," Applied Energy, Elsevier, vol. 93(C), pages 722-732.
    9. Querol, E. & Gonzalez-Regueral, B. & García-Torrent, J. & Ramos, Alberto, 2011. "Available power generation cycles to be coupled with the liquid natural gas (LNG) vaporization process in a Spanish LNG terminal," Applied Energy, Elsevier, vol. 88(7), pages 2382-2390, July.
    10. Obara, Shin'ya & Kikuchi, Yoshinobu & Ishikawa, Kyosuke & Kawai, Masahito & Yoshiaki, Kashiwaya, 2015. "Development of a compound energy system for cold region houses using small-scale natural gas cogeneration and a gas hydrate battery," Energy, Elsevier, vol. 85(C), pages 280-295.
    11. Chen, Wei-Hsin & Hou, Yu-Lin & Hung, Chen-I, 2011. "A theoretical analysis of the capture of greenhouse gases by single water droplet at atmospheric and elevated pressures," Applied Energy, Elsevier, vol. 88(12), pages 5120-5130.
    12. Chi, Chung-Cheng & Lin, Ta-Hui, 2013. "Oxy-oil combustion characteristics of an existing furnace," Applied Energy, Elsevier, vol. 102(C), pages 923-930.
    13. Jordán, Pérez Sánchez & Javier Eduardo, Aguillón Martínez & Zdzislaw, Mazur Czerwiec & Alan Martín, Zavala Guzmán & Liborio, Huante Pérez & Jesús Antonio, Flores Zamudio & Mario Román, Díaz Guillén, 2019. "Techno-economic analysis of solar-assisted post-combustion carbon capture to a pilot cogeneration system in Mexico," Energy, Elsevier, vol. 167(C), pages 1107-1119.
    14. Obara, Shin’ya & Yamada, Takanobu & Matsumura, Kazuhiro & Takahashi, Shiro & Kawai, Masahito & Rengarajan, Balaji, 2011. "Operational planning of an engine generator using a high pressure working fluid composed of CO2 hydrate," Applied Energy, Elsevier, vol. 88(12), pages 4733-4741.
    15. Al Baroudi, Hisham & Awoyomi, Adeola & Patchigolla, Kumar & Jonnalagadda, Kranthi & Anthony, E.J., 2021. "A review of large-scale CO2 shipping and marine emissions management for carbon capture, utilisation and storage," Applied Energy, Elsevier, vol. 287(C).
    16. Simon Roussanaly & Han Deng & Geir Skaugen & Truls Gundersen, 2021. "At what Pressure Shall CO 2 Be Transported by Ship? An in-Depth Cost Comparison of 7 and 15 Barg Shipping," Energies, MDPI, vol. 14(18), pages 1-27, September.
    17. Pérez Sánchez, Jordán & Aguillón Martínez, Javier Eduardo & Mazur Czerwiec, Zdzislaw & Zavala Guzmán, Alan Martín, 2019. "Theoretical assessment of integration of CCS in the Mexican electrical sector," Energy, Elsevier, vol. 167(C), pages 828-840.
    18. Jiang, Xi & Akber Hassan, Wasim A. & Gluyas, Jon, 2013. "Modelling and monitoring of geological carbon storage: A perspective on cross-validation," Applied Energy, Elsevier, vol. 112(C), pages 784-792.
    19. Lee, Inkyu & Park, Jinwoo & You, Fengqi & Moon, Il, 2019. "A novel cryogenic energy storage system with LNG direct expansion regasification: Design, energy optimization, and exergy analysis," Energy, Elsevier, vol. 173(C), pages 691-705.
    20. Karjunen, Hannu & Tynjälä, Tero & Hyppänen, Timo, 2017. "A method for assessing infrastructure for CO2 utilization: A case study of Finland," Applied Energy, Elsevier, vol. 205(C), pages 33-43.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:182:y:2016:i:c:p:154-163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.