Gas 2025 Issue

EDITORIAL COMMENT

Gas-based products dominate low-carbon fuels growth

Market demand, infrastructure, and technological innovation are making gas-based projects more scalable, cost-competitive, and sustainable

Rene Gonzalez Editor, PTQ

I nvestment in gas-based products, primarily lique- fied natural gas ( LNG), continues expanding with the upstream discovery and development of new gas fields in the Middle East, Africa, US (shale-based gas production). Closely connected to midstream pipeline/terminal infra- structure, a fleet of very large LNG carriers, real-time inte - grated fleet monitoring systems, and other enablers have made LNG the dominant gas-based product. Diversification into decarbonised power sources such as solar and wind continues falling short of meeting demand for new power and fuel sources, while growth in the EV market has yet to meet expectations. Meanwhile, emerging LNG consumer markets at a mega scale (for example, India) and a small scale (for example, Caribbean Basin) favour the construction of LNG liquefaction facilities along the US Gulf Coast, The Middle East, Africa, and elsewhere. While a detailed review of LNG and other gas-based technology is beyond the scope of this article, suffice it to say that several liquefaction processes have been developed, with the main differences seen in the type of refrigeration cycles used. These processes can be broadly classified into two groups: mixed refrigerant processes and cascade liquefaction processes (using pure components as refrigerants). LNG is seen as a bridge fuel in the shift away from coal and oil, providing lower emissions and supporting global climate goals. Rising energy consumption in China, India, and Southeast Asia supports increased LNG imports as these regions transition from coal to cleaner energy sources, although coal consumption is still reportedly high. Industries and power plants are increasingly using LNG as a reliable energy source due to its efficiency and lower car - bon footprint. Countries are looking to diversify energy supply sources to reduce dependency from specific regions (for example, Europe reducing reliance on Russian gas), leveraging flex - ible LNG supply solutions based on large-scale and small- scale LNG (ssLNG) trains to liquefy natural gas down to -162°C for storage and transportation. The size of modu - lar ssLNG units makes them ideal for sites near cities and industrial parks to fuel electric generators and power data centres to meet the demands of AI workload. Another example more closely related to the refining

industry is the Stockholm ssLNG terminal, which can sup- ply LNG to the neighbouring Nynas Nynäshamn refinery. From this source, the refinery can generate the hydrogen it needs for its hydroprocessing units. According to recent projections, the switch to natural gas from naphtha will reduce the facility’s CO₂ emissions by more than 57,000 tonnes per year. As LNG production scales, costs continue to decrease, making LNG more competitive against coal, oil, and renewa- bles in certain markets. As with AI-centric data centres, new types of consumers are reducing cost factors. For example, the shipping and maritime industries are shifting towards Improved liquefaction and regasification technologies based on new processing techniques enhance LNG production efficiency, lowering capital and operating costs LNG as a fuel source to comply with IMO (International Maritime Organization) emissions regulations. Other emerging LNG consumers include expanding mining operations (such as lithium and cobalt for EVs and other rare earth metals), shifting remote temporary power requirements from diesel-fuelled generators to natural gas- fired generators in the 100 kW to 1.0 MW range. Elsewhere, higher natural gas liquid (NGL) volumes are providing feed - stock for steam cracker-based olefins production. Other developments in reducing LNG industry costs include float - ing LNG (FLNG) plants. These modular plants lower project costs, reduce environmental footprint, and bring new sup- ply to market. Other enablers involve larger, more efficient LNG carriers (tankers) where advancements in ship design, such as Q-Max and Q-Flex LNG carriers, reduce transpor- tation costs and improve efficiency (see Figure 1 ). Long-term vs short-term opportunities Improved liquefaction and regasification technologies based on new processing techniques enhance LNG pro- duction efficiency, lowering capital and operating costs.

Gas 2025