GIIGNL - THE INTERNATIONAL GROUP OF LIQUEFIED NATURAL GAS IMPORTERS

LNG INFORMATION

#2
PAPER
The LNG Process Chain

2019 Update

About LNG 01 GIIGNL’s Technical Study Group introduces a

contents

series of Information Papers that provide factual

The LNG Process Chain 02 information about Liquefied Natural Gas ( LNG ).
Production: Extraction of the Natural Gas 02 This paper summarizes the components of the
“LNG Process Chain” - the steps and industrial
The Natural Gas Liquefaction Plant 02
processes used in producing, storing, and
LNG Transportation 03 delivering LNG to customers. LNG is used to
LNG Receiving and Regasification Terminals04
transport natural gas economically from distant
locations to consumers and to provide diversity
Key Points and Conclusions 08 and security for the gas supply.

ABOUT LNG
Liquefied natural gas is natural gas, primarily composed of gas to approximately -162°C ( -259°F ) until it forms as a
methane, which has been converted to liquid form for ease liquid. LNG must be turned back into a gas for commercial
of storage and transport. LNG takes up about 1/600th the use and this is done at regasification plants. This Infor-
volume of natural gas. The conversion of natural gas to its mation Paper describes the process used to produce
liquefied form allows for the transport of greater quanti- and ultimately deliver LNG to consumers. This process is
ties. Liquefaction describes the process of cooling natural known as the LNG Process Chain.

Liquefaction plant (export) Shipping Regasification terminal (import)

LNG LNG

RAW GAS
GAS SALES
FEED
Gas treatment Liquefaction Storage Sea transport Storage Regasification

CONDENSATE LPG/ETHANE

Figure 1. The LNG Process Chain

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 THE LNG PROCESS CHAIN

THE LNG PROCESS CHAIN

Since 1964, LNG production, export, import and distri- from import terminals to end-users. It is also used as a
bution has followed a process sequence similar to that fuel for vehicles and ships in liquid form as illustrated in
illustrated in Figure 1. Furthermore, LNG is currently trans- Figure 2.
ported by trucks with specially designed tanks for LNG

Injection in Bunkering of Fueling of

transportation network LNG-powered ships LNG-powered trucks

LNG carrier Import LNG transport Secondary LNG transport

terminal by truck depot by truck

LNG transport by small-scale carrier Isolated areas

customers
Figure 2. The Small-Scale LNG Value Chain ( Source: Snam 2018, http://www.snam.it/ )

PRODUCTION: EXTRACTION OF THE NATURAL GAS

Extraction of the natural gas from beneath the earth’s It is important to emphasize that raw natural gas has to be
surface is the first step along the process chain. purified before we can use it in our homes and factories.
The natural gas we use as consumers is almost entirely
A majority of the world's LNG supply is exported from methane, although natural gas is associated with a variety
countries with large natural gas reserves ( 20 countries of other compounds and gases ( e.g., ethane, propane,
with a total nameplate capacity for liquefaction of 406 butane, pentanes, hydrogen sulphide [H2S], carbon
MTPA at the beginning of 2019 ). These countries include dioxide [CO2], helium and nitrogen ), as well as oil and
Algeria, Angola, Cameroon, Egypt, Equatorial Guinea, water, which must be removed during production prior
Nigeria, Norway, Trinidad & Tobago, USA, Oman, Qatar, to liquefaction.
UAE, Yemen, Australia, Brunei, Indonesia, Malaysia, Papua
New Guinea, Peru and Russia. Other countries may
produce natural gas for domestic use but lack adequate
supply to export on a large scale. In situations in which THE NATURAL GAS LIQUEFACTION PLANT
domestic gas supply is inadequate to meet intra-country
demand, LNG is imported. Step two in the process chain is cleaning the natural gas at
the liquefaction plant. A series of processing steps allows
Once a potential natural gas field has been located by the separation and removal of the various extraneous
a team of exploration geologists and geophysicists, a compounds from the natural gas prior to liquefaction.
team of specialists drills down to where the natural gas
is thought to exist. After a well has been drilled and the
presence of commercially-viable quantities of gas has Gas Treatment
been verified, the next step is to extract the natural gas
( and/or oil ) out of the ground and process it. At this One of the primary purposes of the liquefaction plant
point, the natural gas which is extracted from the ground is to provide consistent composition and combustion
is called “feed” gas. Before a commercial market for LNG characteristics through the cooling and condensing of the
existed, the gas associated with oil went unused and was natural gas so it may be loaded as LNG on tankers ( ships
wasted in a flare. Now it can be used as LNG. or trucks ) and delivered to the end user. The combus-

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 THE LNG PROCESS CHAIN

tion characteristics and content consistency are critically The first voyage of the MV Methane Pioneer in 1959 was
important to obtain pipeline-quality gas. Pipeline-quality from Lake Charles, Louisiana, to Canvey Island, United
natural gas typically contains 85% to 99% methane. It also Kingdom. Commercial voyages began in 1964 on the MV
contains the heavier hydrocarbons and other substances Methane Progress and MV Princess from Algeria to Canvey
which are not removed during the processing. Figure 3 Island. Safety systems on LNG carriers and the training
provides a summary of the stripping process that is used of the crews that operate the vessels have evolved by a
to remove many of the compounds present in the feed process of continuous improvement and are extremely
gas as it comes out of the ground, prior to beginning the robust. Almost 100,000 voyages have been completed
liquefaction process. without an incident which resulted in a loss of cargo.

More specifically, carbon dioxide and water are extracted Today, LNG is transported in large quantities and long
upstream of liquefaction, otherwise they would cause distances on double-hulled ships specifically designed to
damage to liquefaction facilities by freezing. Hydrocar- contain the cargo at or near atmospheric pressure at a
bons heavier than methane are sometimes also separated cryogenic temperature of approximately -162°C ( -259°F )
and sold as raw materials to the petrochemical industry ( Figure 4 ). LNG carriers are a blend of conventional ship
or used as fuel. design with specialized materials and advanced systems
for handling cryogenic cargoes. The containment tanks
have layers of insulation which isolate the LNG cargo from
Heavy
the hull by ensuring a minimum distance from the sides
FEED H2S/CO2
Dehydration Component
LNG and bottom of the hull per the IGC ( IMO International
GAS Removal
Removal
Liquefaction
Gas Code ) and add layers of protection in the event of
grounding or collision. LNG Ships are described in more
detail in Information Paper No. 3. LNG can be also trans-
Figure 3. The production process flow for natural gas prior ported in smaller quantities by ocean going as small as
to liquefaction 1,000 cubic meters.

Additionally, this insulation system limits the amount of

Liquefaction LNG that boils off or evaporates during the voyages. On
many LNG vessels, boil-off gas is used to supplement fuel
Following the removal of most contaminants and heavy during the voyage.
hydrocarbons from the feed gas, the natural gas advances
within the facility to undergo the liquefaction process. The There are stringent international regulations regarding the
natural gas being converted to its liquefied form is almost construction and operation of LNG Carriers at sea and in
entirely methane at this point. To obtain maximum volume port. The International Maritime Organisation ( IMO ) is the
reduction, the gas has to be liquefied through the appli-
cation of refrigeration technology which makes it possible
to cool the gas down to approximately -162°C ( -259°F )
when it becomes a liquid.

At that point, LNG is a non-corrosive liquid that is clear

and colourless like water, but weighs about half as much
as the same volume of water. One volume of LNG equals
approximately 600 volumes of natural gas at standard
temperature ( 15.6ºC/60 ºF ) and atmospheric pressure.
Stated a different way, the liquid form occupies a volume
600 times smaller than the same amount of natural gas. It
is this ratio of liquid to gas that makes LNG economically
attractive for transport in bulk volumes by ship or truck.

LNG TRANSPORTATION

Step three in the LNG process chain is transporting the

liquefied natural gas to the consumer. Primary modes are
by sea and truck and in a few locations ( e.g. Japan ) by rail.

By Sea

When LNG is to be transported any great distance, it is Figure 4. Examples of LNG carrier types: membrane design
most often transported by sea in specialized LNG carriers. (top); Moss sphere design (bottom)

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 THE LNG PROCESS CHAIN

agency of the United Nations responsible for adopting In 2018, about 148 LNG import terminals ( regasification
and updating international treaties ( called conventions ) plants ) operated worldwide. The largest importers of LNG
for shipping safety and security. IMO has adopted approxi- are Japan, China, South Korea, India and Taiwan on the
mately numerous conventions and protocols, including the Asian continent, Mexico, Brazil, Argentina and Chile in the
International Code for the Construction and Equipment of Americas, Kuwait and Jordan in the Middle East and a
Ships Carrying Liquefied Gases in Bulk ( IMO Gas Code ) number of European countries such as Turkey, France, the
and the International Maritime Dangerous Goods Code. UK, Portugal Italy, Spain and the Netherlands. An overview
of exporting and importing countries throughout the
By Truck world is illustrated in Figure 5.
In areas around the world where a liquefaction plant is in
LNG can also be delivered to floating terminals which are
the vicinity of regasification facilities, the most cost-effec-
LNG ships or barges constructed to function as Floating
tive transportation mechanism for LNG is by tank truck.
Storage Units ( FSU ), Floating Regasification Units ( FRU )
Using specialised, double-skinned tank trucks, liquefied
or Floating Storage and Regasification Units ( FSRU ).
natural gas can be transported to a satellite plant ( small
Floating facilities allow LNG terminals to be sited offshore
regasification facility, bunker stations. ) quickly and effec-
and deployed rapidly, often at a lower capital cost than
tively. In many parts of the world, trucking has been used
conventional terminals. Floating terminals are operating in
for the transportation of LNG since 1968. LNG trucking
Argentina, Brazil, China, Colombia, Egypt, Indonesia, Israel,
is now a mature industry, using tanker trucks of 6 to 20
Italy, Jamaica, Jordan, Kuwait, Lithuania, Malaysia, Malta,
tonnes which meet industry requirements. LNG is regularly
Pakistan, Turkey, UAE and the US.
transported by tank truck in all regions of the world,
including but not limited to Chile, Dominican Republic,
Another type of facility which may receive LNG by ship
the US, China, Japan, South Korea, India, Indonesia, Spain,
is known as a peak-shaving facility. These plants, which
Turkey, Portugal, France, the UK, Netherlands, Poland,
may be operated by utility companies, store LNG in
Belgium and Lithuania.
tanks until it is needed at times of peak demand. An LNG
peak-shaving facility is normally connected to the gas
supply system and may consist of LNG liquefaction equip-
LNG RECEIVING AND ment to convert the natural gas into LNG, LNG storage
REGASIFICATION TERMINALS tank( s ), pumps, vaporisers and other equipment to turn
the LNG back from a liquid to natural gas. In some cases
The fourth step in the LNG process chain involves the peak-shaving facilities are filled using road tankers from an
import terminals, which are marine or waterfront facilities. import terminal. There are different designs of LNG import
LNG carriers deliver the LNG to a marine terminal where terminals but the overall process is often quite similar.
the LNG is stored before undergoing regasification, which
converts the LNG back into its gaseous form.

Figure 5.Overview of LNG exporting and importing countries (Source: GIIGNL, 2018)

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 THE LNG PROCESS CHAIN

A typical LNG import terminal process flow diagram is Boil-off gas is the vapour produced above the surface of a
shown in Figure 6. The major equipment components of boiling cargo due to evaporation, which is caused by heat
an LNG import and regasification terminal are: ingress or a drop in pressure.
●● Unloading arms,
Since natural gas is odourless, odorisation of the re-gas-
●● Cryogenic pipelines, ified natural gas is required in many regions and countries
●● Storage tank( s ), before it is distributed to consumers. A typical odorant is
THT ( tetrahydrothiophene ) or mercaptan.
●● Low pressure pumps,
●● Boil-Off Gas ( BOG ) compressors and re-condensers,
●● High pressure ( HP ) pumps, and
●● Vaporisers.

Figure 6. Example of LNG import terminal process (Source: BV 2009)

( Un )loading

LNG ( un )loading operations use articulated arms or

cryogenic flexible hoses, which are specifically designed
to transfer cargo safely from the ship to the terminal.
The articulated arms are called “hard-arms” and are the
connection between the ship’s manifold system ( piping
connection ) and the terminal. A picture of hard-arms
connecting the ship and terminal is shown in Figure 7.

Flexible hoses are often used for Ship-to-Ship transfers

such as loading operations with FSRUs or between two
LNG carriers for cargo trading. Additionally, small scale
LNG transfers, such as from trucks, from bunkering or
transport vessels , often rely on flexible cryogenic hoses.

Once the LNG carrier is moored, the ( un )loading arms/

hoses are gradually chilled to approximately -162°C Figure 7. Unloading arms at an import ( receiving ) terminal
( -259°F ) prior to the beginning of LNG unloading opera- (Source: BV 2009)

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tions. The ( un )loading arms/hoses are able to endure the tank, resulting from stratification. The potential for rollover
expansion and contraction which results from changes in arises when two stratified layers of different densities
temperature. ( due to different LNG compositions ) exist in a tank. To
prevent rollover, top & bottom filling lines as well as special
Most unloading installations are fitted with an emergency instruments called densitometers are used to monitor the
disconnection system (known as a Powered Emergency development of the layers within the tank and allow the
Release Coupling or PERC) that protects the ship’s operator to mix the LNG within the tank or with that in
manifold connection and terminal’s hard arms/hoses from other tanks to break up the stratification.
damage in the event of large movement of the LNGCs
during unloading. An import terminal usually has two or more LNG storage
tanks. The types of tank types, described further in Infor-
This system allows the rapid disconnection of the LNG mation Paper No. 5, are:
carrier from the terminal while limiting the amount of
●● Single containment tanks,
LNG which could potentially be released. Position detec-
tors are installed to check that the ship is not moving too ●● Double containment tanks,
vigorously ( in a manner likely to break the arms ). These ●● Full containment tanks,
detectors can activate the emergency disconnection
system. The PERC is comprised of two ball valves and an ●● Pressurized small tanks,
emergency release coupler. If the vessel moves outside ●● Membrane tanks, and
of the normal operating range, an ESD ( emergency ●● In-ground tanks.
shutdown device ) will be activated automatically and
cargo transfer will be stopped. Further movement of
the vessel outside of the operating range will activate
the emergency release system. The ball valves will close Re-gasification
and the emergency release coupler will operate. One ball
valve remains attached to the ship and the other stays Next, the LNG stored in the tanks is sent to vaporisers
attached to the arm/flexible. The PERC system may also which warm and regasify the LNG. As this occurs, boil-off
be activated by an operator. This system is designed to gas evaporating from the LNG stored in the tanks is
trap the minimum amount between the valves which could re-condensed, and also sent to the vaporisers. This will
be spilled upon release. avoid flaring or venting boil-off gas for most operating
conditions.
Flexible hoses and arms are also used for ship LNG
re-loading from onshore storage tanks The main types of vaporisers used in the LNG industry are
Open Rack Vaporisers, Submerged Combustion Vaporisers,
. Intermediate Fluid Vaporisers and Ambient Air Vaporisers.
Storage

After unloading, LNG is transferred via cryogenic pipelines Open Rack Vaporisers ( ORV )
to insulated storage tanks specifically built to hold LNG.
Open Rack Vaporisers ( Figure 8 ) derive the heat neces-
There are three kinds of facilities where LNG can be stored: sary to vaporise LNG from seawater. The water is first
onshore import terminals, floating import terminals and filtered to avoid the presence of small solid particles in
peak-shaving facilities. the ORV. It then falls onto panels of tubes containing LNG
and then gathers in a trough underneath before being
LNG storage tanks are designed to withstand cryogenic discharged back into the sea. The LNG passing through
temperatures, maintain the liquid at low temperature, and the tubes is heated and vaporises.
minimize the amount of evaporation. The small part of LNG
which evaporates is called “boil-off gas”. The temperature The tubes are specifically designed to optimise heat
within the tank will remain constant if the pressure is kept exchange.
constant by allowing the boil-off gas to escape from the
tank. This gas is captured and: a ) re-condensed to be sent
to the vaporiser with LNG or compressed and sent to the
pipeline; or b ) re-injected into the LNG carrier to maintain
positive pressure during the unloading of the ship; or c )
only in abnormal or accidental situations, sent to the flare.
For pressurized LNG tanks, the boil-off gas is suppressed
by allowing the tank pressure to increase.

The storage facility is designed with a venting feature as

an ultimate protection against risk of overpressure due
to a “roll-over” condition in the LNG tank. LNG “rollover”
refers to the rapid release of LNG vapours from a storage Figure 8. Open rack vaporiser (Source: Tokyo gas)

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Submerged Combustion Vaporisers ( SCV ) Ambient Air Vaporisers ( AAV )

Submerged Combustion Vaporisers burn natural gas This vaporiser uses the heat from the air. It is a proven
produced by the terminal and pass the hot gases into a technology and has generally been used for smaller instal-
water bath containing a tubular heat exchanger where lations such as LNG satellite terminals fed with LNG by road
LNG flows ( Figure 9 ). The froth produced by the combus- truck ( Figure 11 ). The units may have natural convection or
tion gas increases the efficiency of heat transfer between fan-assisted air flow. Some larger units have recently been
the water and the LNG, and prevents ice from forming on installed at LNG import terminals where seawater systems
the tube bundle. Submerged Combustion Vaporisers burn are considered unsuitable.
1 to 1.5 % of the natural gas processed.

Figure 9. Submerged Combustion Vaporiser (Source: Selas Fluid

Processing Corporation brochure)

Figure 11. Ambient Air Vaporiser (Source: BV 2009)

Odorisation, Send-out, and Delivery

Before natural gas is distributed to consumers, an unpleas-

ant-smelling odour is added. Because natural gas is colour-
less and odourless, a leak is impossible to detect without
appropriate instruments. To make the detection of a gas
leak easier, whether it is in our kitchen or in a pipeline, an
odorant is normally added to natural gas. The odorisa-
tion station can be in the LNG terminal itself before the
send-out of natural gas, or just a few kilometers beyond
the terminal. The point at which odorants are added
Figure 10.a ) Integrated Intermediate Fluid Vaporise (Source: depends on the country. Many terminals that export to a
KOBELCO) high pressure transmission line do not odorise.

Metering, the last step at the terminal, measures the

quantity of gas which is being sent out. Natural gas is then
delivered by pipeline directly to customers for industrial
or residential use.

LNG Reloading

LNG reloading means loading back an already discharged

LNG cargo onto a vessel for the purpose of re-export. In
2018, a total 3.8 MT of LNG was reloaded worldwide, 2.9
MT of which from Europe. Reloading of LNG has become
Figure 10.b ) S&T vaporisers with an intermediate loop (Source: very common recently in the European LNG market to take
LNG Journal, 2006) advantage of price differentials between markets.

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 THE LNG PROCESS CHAIN

KEY POINTS AND CONCLUSIONS series will include a discussion of the many ways in which
LNG safety is assured, through Multiple Safety Layers, all
In closing, the key points of this information paper are: firmly based on a foundation of solid Industry Standards,
Regulatory Compliance and Codes. These “safety layers”
1. T he LNG Process Chain includes the Extraction, include several key components of the industry’s Risk
Processing, Liquefaction, Transport, Storage, Regasifi- Management framework. Included among them are
cation and distribution to consumers of LNG. Primary and Secondary Containment, Control Systems
which promote Operational Integrity; Protocols, Operator
2. Extraction of natural gas from commercially-viable, Knowledge and Experience ( which are reinforced by
drilled wells produces “feed gas” which needs to be comprehensive and ongoing training ). A protective
processed to commercial quality. umbrella of Safeguard Systems, Separation Distances, and
Contingency Planning further enhances safe management
3. Processing of LNG includes cleaning it by separating of LNG.
and removing various extraneous compounds, including
carbon dioxide and water.

4. Liquefaction of the natural gas, predominantly methane, Multiple Safety Layers Manage LNG Risk
is achieved by refrigeration down to approximately
-162°C ( -259°F ).
Safeguard Systems, Separation Distances,
5. Transport of LNG over long distances is by sea in Contingency Planning and Exercises
specially-designed, double-hulled LNG ships, or over
shorter distances by specialized, double-skinned tank Control Systems, Operational Integrity & Protocols,
Operator Knowledge, Training & Experience
trucks or small LNG carriers. Once LNG is regasified,
natural gas is sent out to consumers through a pipeline
Secondary Containment
distribution network.
Primary Containment
6. LNG is delivered to three kinds of facilities: onshore
import terminals, floating import terminals and Liquefied Natural
peak-shaving facilities. LNG is unloaded using cryogenic Gas ( LNG )
unloading arms or hoses and transferred via pipelines to
specifically-designed, insulated storage tanks at these
facilities. INDUSTRY STANDARDS, REGULATORY COMPLIANCE & CODES

7. LNG unloading operations in import terminals use artic-

ulated arms ( “hard-arms” ) or cryogenic flexible hoses
specifically-designed to safely transfer the LNG safely
from the ship to the terminal. For more information about these and other topics, or to obtain
copies of this report series contact:
8. Safety systems are designed into every single step of
the “Chain”. Examples include, during the Unloading
Process, the Power Emergency Release Coupler GIIGNL
( PERC ), which safely disconnects the ship’s manifold 8 rue de l’Hôtel de Ville
connection and the terminal’s hard-arms in emergency 92200 Neuilly-sur-Seine ( France )
situations, and Emergency Shutdown Systems ( ESDs ), Telephone: +33 ( 0 )1 56 65 51 60 Email: [email protected]
which immediately terminate the loading process with Web address: https://giignl.org
no leakage. These activate either automatically or
manually.

9. Regasification of the LNG is accomplished by using one

of a number of kinds of vaporizers.

10. Odors are added after regasification, then the natural

gas is metered and sent out for delivery to the ultimate
industrial or residential customers through a pipeline.

The excellent safety record for the LNG Process Chain is

a result of the LNG industry’s stringent design practices
and diligent operating standards, enhanced and supported
by strong regulatory oversight. In that specific regard, a
graphic illustration of these “Multiple Safety Layers” is
reflected in the figure below. Subsequent papers in this

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