The demand for liquefied natural gas (LNG) has rapidly increased, primarily due to substantial price disparities between diesel fuel and low-priced natural gas, especially given the expanding development of global shale gas and the increased penalties for flaring.
Typical LNG facilities are large, permanent facilities that process tens of millions of gallons a day. Most are located in coastal areas producing LNG for export in vast quantities, while smaller LNG facilities are used for ‘gas peaking’ service (i.e., where natural gas is converted to LNG and stored during warmer weather when gas is typically cheaper and is later vaporized back into natural gas to meet demand when colder weather strikes or gas prices spike).
But what if the distance between the natural gas source and the LNG facility is far and transport too expensive? Or what if there is no infrastructure for transporting the gas to the point of use?
Michael Walhof, Sales Director for Distributed LNG Solutions for Siemens’ Dresser-Rand business, and his team developed the LNGo natural gas liquefaction system to answer this challenge: “We created a distributed LNG solution that allows our customers to take advantage of their local natural gas sources, thereby reducing transportation costs and lowering delivered LNG prices. Our goal is to open markets and demand that would likely not be cost-effectively served by distant LNG sources.”