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LNG creates new business opportunities

Wärtsilä Corporation
  • News
13 September 2017 at 1:00 PM E. Europe Standard Time

LNG creates new business opportunities in places where they previously did not exist. As an attractively priced fuel that can be easily transported, LNG enables profitable business in areas that are difficult to reach. Installations that power, for example, mines or production facilities in remote locations, with no access to pipelines, can ship in LNG to ensure sufficient electricity for their operations. Using an inexpensive and efficient fuel can make a major difference in operating expenses and consequently in profitability and competitiveness.

Initiating LNG-based energy production naturally takes some time, as it involves permitting processes as well as infrastructure construction. However, there are now solutions that enable faster market access: floating storage and regasification barges, or FSRBs, are moveable installations that can be put in place and fired up much faster than land-based facilities. They are ideal for projects with a clearly defined time frame, as well as for getting started in LNG-based operations. The FSRB can provide the necessary infrastructure while a land-based permanent installation is being built.

“LNG opens up exciting new possibilities across industries. It reaches the far ends of the world. It is efficient and more sustainable than traditional fossil fuels such as heavy fuel oil. Due to a global surplus, it will be inexpensive for a long time. This combination makes it an ideal fuel for a variety of purposes, and fixed-term projects as well as permanent operations,” says Alexandre Eykerman, Vice President, Energy Solutions, LNG Solutions, from Wärtsilä.

Natural gas and renewable energy technologies come with many economic, technical, environmental and political advantages. From an environmental point view, gas is a more sustainable alternative than oil, producing fewer emissions and burning more efficiently. Regulation is a strong driver towards cleaner energy production. While renewable energy sources are gaining ground, they are still dependent on weather and may not always be sufficient to cover demand peaks. Gas is often used for load balancing power, to ensure that there is enough power available to meet the needs of both industry and consumers.

LNG infrastructure contributes to fuel flexibility

In shipping as well as in energy production, the availability of fuel is a key concern. So far, the growth of the LNG market has been held back by insufficient infrastructure: if there are not enough terminals or regasification facilities in strategic locations, shifting to LNG is not a viable option. However, ports now are waking up to the advantages of offering LNG services and investing in terminals that serve local industry and energy production as well as the shipping industry. An LNG terminal also attracts ship traffic to a port, as vessels need to fuel up. By bringing in cruise ships, it can even boost local tourism.

In areas that are strongly dependent on a single energy source, LNG infrastructure introduces welcome flexibility. With multiple fuel alternatives and suppliers, buyers can choose the one that answers their needs best at any given time – be it a matter of cost, availability or environmental performance.

In many regions around the world, the need to implement strategies to increase gas supplies through pipeline and LNG infrastructure to meet demand for electricity and gas peak demand is already on the agenda. Wärtsilä recently achieved a mechanical completion at the Tornio Manga LNG terminal in Northern Finland, an area with harsh weather conditions. When in commercial operation, the LNG terminal will serve shipping and road transportation companies, power and heat utilities, as well as other industrial and mining companies – while creating a diversified fuel market and enabling growth in northern Europe.

“Wärtsilä has the expertise to establish LNG and multipurpose terminals even in challenging areas – for example in Arctic conditions. We see gas as an integral part of today’s energy mix, and a driver of sustainable business growth. The diversity created by LNG already enables the switch to alternative fuels. By providing high-quality LNG infrastructure solutions, we can offer better reliability, flexibility and profitability to energy and marine customers alike,” Eykerman concludes.

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Caption: When in commercial operation after spring 2018, the Tornio Manga LNG terminal in Finland will supply gas to a local stainless steel mill, and LNG to other users in the Nordic region.

For further information, please contact:

Alexandre Eykerman
Vice President, LNG Solutions
Wärtsilä Energy Solutions
Tel: +358 50 3823578
alexandre.eykerman@wartsila.com
 

Wärtsilä Energy Solutions in brief
Wärtsilä Energy Solutions is a leading global energy system integrator offering a broad range of environmentally sound solutions. Our offering includes ultra-flexible internal combustion engine based power plants, utility-scale solar PV power plants, energy storage & integration solutions, as well as LNG terminals and distribution systems. The flexible and efficient Wärtsilä solutions provide customers with superior value and enable a transition to a more sustainable and modern energy system. As of 2017, Wärtsilä has 63 GW of installed power plant capacity in 176 countries around the world.
www.smartpowergeneration.com

Wärtsilä in brief
Wärtsilä is a global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2016, Wärtsilä's net sales totalled EUR 4.8 billion with approximately 18,000 employees. The company has operations in over 200 locations in more than 70 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com

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