Print Email Facebook Twitter LNG jetties as a standard product: FELP: a Financial Evaluation model for LNG Projects Title LNG jetties as a standard product: FELP: a Financial Evaluation model for LNG Projects Author Quist, P. Faculty Civil Engineering and Geosciences Department Hydraulic Engineering Date 2001-07-01 Abstract Natural gas is a highly desirable energy source because of its high calorific value and clean-burning characteristics compared to other fuels. Natural gas, which is composed primarily of methane (CH4 ) , occurs as associated and non-associated form in reservoirs. The largest gas reserves are located in remote and thinly populated areas, viz. in Eastern Europe & Former USSR and the Middle East. Natural gas is transported either by pipeline in the form of compressed gas or after liquefaction by LNG carrier in the liquid state as Liquefied Natural Gas (LNG). LNG is inherent to transport by LNG carrier. It can also be transformed by chemical conversion and transported by a chemicals tanker. While the market for chemicals remains small, the LNG trade is expanding considerably. The expanding LNG trade is caused by the growing gas demand combined with the fact that where there is little or no gas supplies available or where long distance pipeline gas transport is economically or technically unfeasible, LNG transport generally appears to be the only feasible solution. BNE Ballast Nedam Engineering (BNE) is the in-house design company of the international contractor Ballast Nedam. BNE has the intention to extend her field of action from the final design phase to the earliest stages of LNG projects. In these earliest stages of LNG projects it has to be evaluated whether or not an acceptable rate of return is possible. Within this report it has been determined whether it is possible to develop a financial evaluation model for a quick reliable estimate of the LNG jetty investment and an accurate evaluation of the project's feasibility. The product 'standard LNG jetty' In order to enable quick estimating of the jetty investment, the LNG jetties are considered as a standard product. The product 'standard LNG jetty' consists of (1) a loading platform which supports loading-, fire-fighting- and miscellaneous equipment and provides vehicular and pedestrian access; (2) breasting and mooring dolphins which absorb berthing energy and transmit breasting forces to the subsoil respectively keep the ship close to the berth by transmitting breast line forces to the subsoil and (3) a trestle which connects the loading platform to the shore in order to provide vehicular and pedestrian access and support to the LNG (un)loading lines, vapor return line and cable trays. Opportunities and threats The market for LNG and the market for the product 'standard LNG jetty' look strong for the period through 2015. LNG trade is expected to expand by over 90% between 19992010 under a scenario most likely, reaching 241.3 billion m3 of gas. An important factor in this growth is the governmental agreement relating to caps on carbon emissions according to the Kyoto protocol through which the need for natural gas increases. Moreover, modern natural gas fired combined cycle power plants have very high efficiencies, which can exceed 55% and their capital costs are about 60% lower than that of a similar sized coal- or nuclear plants. Opposed to this, the close location of natural gas hydrates to some of the major markets for LNG or the technical and economic improvements of deepwater gas pipelines could dampen growth in the LNG market. Subject lng projectsinvestment To reference this document use: http://resolver.tudelft.nl/uuid:48f9bcf2-db95-46dc-9267-57dd0b39e95a Part of collection Student theses Document type master thesis Files PDF ceg_quist_2001.pdf 17.96 MB Close viewer /islandora/object/uuid:48f9bcf2-db95-46dc-9267-57dd0b39e95a/datastream/OBJ/view