POWER UP ON CLEAN AND AFFORDABLE GAS Small- and medium-scale LNG terminals A BANKABLE PROJECT WITH A COMPLETE VALUE CHAIN SOLUTIONS ADAPTED TO THE REQUIREMENTS OF SMALL-SCALE LNG The global trend Natural gas is today one of the world’s most needed feedstocks as well as an important energy source. Global consumption continues to increase significantly. The replacement of liquid fossil fuels, such as heavy fuel oil, marine diesel oil and diesel, contributes positively to the environment, with emissions of NOX, SOX, and particulates being almost entirely eliminated and CO2 emissions being notably reduced. By liquefying natural gas the volume is reduced by a factor of around 600. This enables efficient transport to end-users overseas, as well as on land where pipelines are not a suitable sustainable solution. 2 The growth of liquefied natural gas (LNG) consumption is z Availability of subsidies in the EU and China for driven by: LNG infrastructure projects z Environmental requirements on emission z Energy demand reduction - A need for lower energy costs in power generation and - LNG for feedstock. Natural gas is used as feedstock energy intensive industries. for about half of the commercial hydrogen production - Energy security considerations. in the world and it is currently the cheapest source of - A need for decentralized power generation in some hydrogen. The heavier feedstocks, like coal and oil, are areas. more complex to process; therefore, the capital costs are higher compared to natural gas. - Rapid growth of renewables in the power generation mix increases the demand for gas fuelled power plants to balance the load. - Fuel for marine vessels. As at the end of 2015, there were an estimated 90 vessels fuelled by LNG. It is cost competitive and contributes to a reduction in maritime greenhouse gas (GHG) emissions. - Fuel for heavy road transport. There are currently about 170,000 trucks and buses running on LNG in Asia, 3500 in North America, and 1500 in Europe. 3 Wärtsilä makes the difference P LAT FOR M S U P PLY V E S SEL ( P S V) F LOAT I N G S TORAGE & ( REGAS I FICATI ON ) U N IT L E G E N D OF F S HORE SERVI CE ( F S R U / F S U ) VES SEL (OS V) W Ä R T S I L Ä O F F E R I N G G A S L I N E S H I P R O U T E O I L & G A S P L AT F O R M P O W E R P L A N T L A R G E L IQUEFAC T ION P O W E R P L A N T L A R G E T E R M I N P LANT A L P O W E R P L A N T S M A L L L N G C A R R I E R REL IQUEFAC T ION U NI T R E L I Q U E FA C T I O N U N I T REG A S I F ICATI ON L N G C A R R I E R UN IT BU N KER I NG TER MI N AL L N G F U E L L ED BI O GAS PA S S ENG E R S HI P U P GRA D ING P L A NT BI O GAS P O W E R P L A N T AND F L O A T I N G S T O R A G E A N D L IQUEFACTION L N G S T O R A G E R E G A S I F I C A T I O N B A R G E ( F S R B ) P L A NT P O W E R P L A N T SATE L L ITE AND BUNK E R I N G TERMI NAL BUNK E R I NG V E S S EL LBG F I L L ING S AT E L L I T E T E R M I N A L STATI ON P O W E R B A R G E ANAEROBIC D IGE S TIO N SATEL LI TE P L A NT TERMI NAL L N G F UEL L ED CA R G O SHI P MINI L IQUEFAC T ION P LANT B U N K E R I N G T E R M I N A L SMA L L / MED IUM S MALL TE RMI NAL L IQUEFAC T ION P LANT J E T T Y L N G F I L L ING STATI ON S M A L L L N G C A R R I E R P O W E R P L A N T 4 P LAT FOR M S U P PLY V E S SEL ( P S V) F LOAT I N G S TORAGE & ( REGAS I FICATI ON ) U N IT L E G E N D OF F S HORE SERVI CE ( F S R U / F S U ) VES SEL (OS V) W Ä R T S I L Ä O F F E R I N G G A S L I N E S H I P R O U T E O I L & G A S P L AT F O R M P O W E R P L A N T L A R G E L IQUEFAC T ION P O W E R P L A N T L A R G E T E R M I N P LANT A L P O W E R P L A N T S M A L L L N G C A R R I E R REL IQUEFAC T ION U NI T R E L I Q U E FA C T I O N U N I T REG A S I F ICATI ON L N G C A R R I E R UN IT BU N KER I NG TER MI N AL L N G F U E L L ED BI O GAS PA S S ENG E R S HI P U P GRA D ING P L A NT BI O GAS P O W E R P L A N T AND F L O A T I N G S T O R A G E A N D L IQUEFACTION L N G S T O R A G E R E G A S I F I C A T I O N B A R G E ( F S R B ) P L A NT P O W E R P L A N T SATE L L ITE AND BUNK E R I N G TERMI NAL BUNK E R I NG V E S S EL LBG F I L L ING S AT E L L I T E T E R M I N A L STATI ON P O W E R B A R G E ANAEROBIC D IGE S TIO N SATEL LI TE P L A NT TERMI NAL L N G F UEL L ED CA R G O SHI P MINI L IQUEFAC T ION P LANT B U N K E R I N G T E R M I N A L SMA L L / MED IUM S MALL TE RMI NAL L IQUEFAC T ION P LANT J E T T Y L N G F I L L ING STATI ON S M A L L L N G C A R R I E R P O W E R P L A N T Clean and affordable energy for everyone While LNG previously only was an option for buyers that reserves or access to gas pipelines choose to invest in could absorb large quantities, conventional LNG infra- LNG in order to diversify their supply options. Implemen- structure is now being complemented by small-scale tation of Emission Control Areas for the maritime industry facilities serving smaller demand centres. Islands and makes LNG a very interesting fuel option for shipping other areas stifled by the cost of electricity or pollution companies. Increasingly, ports invest in bunkering termi- now have the opportunity to access LNG and improve the nals, bunkering vessels and bunker barges to maintain competitiveness and attractiveness for business and the their competitiveness and ability to serve a growing fleet living conditions of their citizens. Even countries with gas of LNG fuelled ships. 5 Small- and medium-scale LNG terminals While the LNG market continues to grow, ensuring access and availability is a key prerequisite. The need for LNG terminals is particularly relevant in places where the gas infrastructure is under-developed but the potential demand for gas-fired power generation and natural gas for other industrial uses is substantial. Alternatively, LNG terminals can complement the existing gas reserves or pipelines in order to improve fuel supply security. Wärtsilä’s terminal portfolio The storage tank is usually the most expensive part of a z Specifically adapted for the terminal unless marine facilities are part of the scope, and requirements of small-scale LNG through elimination of complexity the terminals are often defined according to the size of the and increase of flexibility tanks. Wärtsilä’s portfolio consists of terminals with various z Single use (e.g. providing fuel for a functions combined with a storage capacity in the range power plant) or multi-use (e.g.