Small Scale LNG: New Launches to Control Global Emissions

S. Shetty,

There has been a growing demand of liquefied natural gas (LNG) in various countries across the globe, owing to its impeccable application in trucks and ships. They provide a great deal of economic and environmental benefits as compared to the conventional fuels such as diesel and petrol. Thus, LNG is extensively used and considered as an efficient and reliable fuel for transportation.

On the other hand, irregular price-hikes of traditional fuels such as petrol and diesel create massive hurdles among individuals across the globe, resulting in the rapid adoption of LNG among people.

Conversely, numerous countries around the world are adopting various initiatives to reduce carbon footprints. Hence, LNG comes out as an ideal transportation fuel, and is therefore gaining immense traction across the globe.

Europe and countries such as the U.S. and China have already taken necessary measures to deploy LNG-powered trucks, particularly for long-distance freight carriage. In the Asia-Pacific region, China is paving the way due to the notable demand for small-scale LNG in transportation and power generation.

In Europe, Germany is holding an authoritative position due to the expeditious usage of transportation in the region. On the other hand, the U.S. is dominating in the North American Region due to the booming liquefaction terminal sector. Thus, governments of various countries across the globe are imposing stringent policies and regulations on decarbonizing and emission control.  

For instance, in 2019, the European Commission initiated a Green Deal that includes a comprehensive set of policy initiatives that particularly aims to make Europe carbon-neutral by 2050. The policy also remarkably underlines and points out the importance of LNG to reach the aim. The policy has also emphasized the wide usage of LNG as a reliable and efficient transportation fuel for marine vessels and trucks.

Thus, small scale LNG is extremely environmental-friendly, and hence its sustainability and extensive application in off-grid power generation in remote or secluded industrial complexes is expected to drive the demand in the coming years. In addition, LNG from these small-scale plants is extensively used as industrial feedstock, transportation fuel, and for other purposes in commercial, residential and industrial sectors.  

Significant surge in the demand for electricity has subsequently resulted in the highest production of LNG. More and more remote and rural areas across the globe are devoid of electricity. Furthermore, rise in industrialization and increase in household requirements among people is further predicted to surge the demand for electricity production. Thus, astounding initiatives taken by the governments for rural electrification is further anticipated to raise the demand for LNG in the forthcoming years.  

Apart from electrification and transportation, LNG is widely used for heating and cooking purposes. With the ever-growing population, the significance and growth potential of small-scale LNG are expected to surge exponentially in the upcoming years.

Additionally, fluctuations in the prices of crude oil, reduction in the prices of natural gas, and integration of new, innovative technologies is predicted to create tremendous opportunities for the growth of the global small-scale LNG market. According to the report published by Allied Market Research, the global small scale LNG market is expected to grow expeditiously from 2021 to 2027.  

Numerous players of the market across the globe are launching innovative products and services to cater to the needs of their customers around the world. For instance, PAO NOVATEK, a West Siberia-based dominant natural gas producer, announced that it launched a small-scale LNG plant in Magnitogorsk, Chelyabinsk Oblast in Russia. The company is set to launch the first small scale, 40,000 tpy capacity LNG plant in the Chelyabinsk region. The key technological equipment for the newly constructed plant was provided by JSC NPO GELIYMASH, one of the most dominant manufacturers engaged in cryogenic technologies in Russia.  

The LNG produced in the plant in the Chelyabinsk region will be sold particularly as natural gas motor fuel. Leonid Mikhelson, the Chairman of the Management Board of NOVATEK, mentioned in a statement that NOVATEK strongly supports the use of LNG as a motor fuel. He also mentioned that the company is incessantly developing the market segment both in Russia and abroad. Thus, NOVATEK has taken all necessary measures to supply LNG to its branded refuelling complexes for cargo transport, mining equipment, and passengers living in the he Chelyabinsk Region and neighbouring areas. 

The trend of launching new LNG storage facilities is gaining massive momentum among popular players of the market in various countries across the globe. For instance, Venice LNG, a subsidiary of Decal SpA Group which is engaged in the line of business that includes warehousing, storage, and transport of a general line of goods, announced the launch of its new LNG storage facility. The Venice LNG coastal storage facility will be situated across Industrial Channel South of Porto Marghera, Venice, Italy. The storage facility has already been authorized for construction and operation, and the project is expected to be operational by the end of the year 2024.  

The plant will have a storage capacity of 32,000 cm3 and is expected to supply an initial throughput of 150,000 cmper year and is further anticipated to reach 900,000 cm3 per year at full capacity. Venice LNG facility will also be able to essentially accommodate Bio-LNG, which is obtained by the means of liquefaction of biomethane that is produced from renewable sources.

These renewable sources have immense potential, and hence plays an instrumental role in minimizing carbon footprints in the booming mobility sector. Venice LNG will be able to handle Bio-GNL as it is fully compatible with the prevalent LNG technology and infrastructure. Thus, LNG is extensively considered as a sustainable, efficient fuel.

It is also one of the most constructive ways of decarbonizing, specifically in the field of sea and land transport.  

The Venice LNG project is co-financed by the European Union (EU) Commission under the programming Connecting Europe Facility (CEF) with the help of shares of Venice LNG Facility and Gainn4Sea. The project was encouraged and promoted by the Authority of Harbour System of the Adriatic Sea North. GP

Shreeras Shetty is currently working in the content writing industry and has a Bachelor’s degree in management studies specializing in marketing. He is passionate about writing and is gaining a significant experience in the Market Research Industry. Outside the office, Shreeras is actively engaged in recreational activities like playing football, trekking, travelling, and athletics. 


{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}