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EUROPEAN COMMISSION
DG MOVE
SEVENTH FRAMEWORK PROGRAMME
GC.SST.2012.2-3 GA No. 321592
LNG BC Market development
LNG Blue Corridors Project is supported by the European Commission under the Seventh Framework
Programme (FP7). The sole responsibility for the content of this document lies with the authors. It does
not necessarily reflect the opinion of the European Union. Neither the FP7 nor the European
Commission is responsible for any use that may be made of the information contained therein.
Deliverable No. 7.6
Deliverable Title Market development
Dissemination level Public
Written By Flavio Mariani (NGVA Europe)
Checked by Nadege Leclercq (Westport)
Approved by Javier Lebrato (IDIADA)
Issue date April 2018
3
Executive Summary The global LNG market keeps showing a growth trend. The LNG consumption, as well as production
rate is increasing at global level. At present there is a production overcapacity; this situation is anyway
expected to reverse to the other way around in the short to mid-term, until new production plants
planned and under construction come to completion, thus adding to total production capacity. The
global LNG market in fact faces a production surplus of about 20%. Experts predict that this will last
probably until the early twenties, because some new suppliers such as US and Australia will increase
their production rate. The demand for LNG in mature markets such as Japan and South Korea is likely
to stabilize, while Asia is expected to absorb an increasing part of production overcapacity. Especially
expanding may be the demand from south Asian countries such as India, Pakistan and Bangladesh.
The Association of Southeast Asian Nations (ASEAN) region is also expected to be an important market
for LNG in the short term.
The main features of the LNG core business market are:
• Global LNG trade in 2016: 278 Mt (+5% vs 2015) – 618 Mm3
• Short term market of LNG in 2016: 73 Mt (28% of total LNG market)
• Global average LNG supply price: $5.52/MMBtu ( 35c€/Kg – 48 c€/Sm3)
• Global nominal liquefaction capability as of January 2017: 340 MTPA (Million tons per year)
• New liquefaction capability under construction as of January 2017: 115 MTPA (+35% by 2022)
• New liquefaction capability planned in January 2017: 879 MTPA
• Global nominal regasification capability as of January 2017: 795 MTPA
• Capability of FRSU (floating terminals) plants as of January 2017: 83 MTPA
• Global LNG vessels fleet as of January 2017: 439 ships (including FRSU)
• Share of LNG in the global NG offer in 2015: 10%
The LNG BC Project has met its main targets. More than 150 trucks have been involved as actual
Project partners, from 39 fleet operators, collecting operational data along their routes. The initial
target was 100 trucks. 13 stations have been built in the Project, of which 12 are in the budget. The
original target was 14. Some of the stations sold very well since the beginning. Some other increased
sales over the project duration, with increasing trend to reach a reasonably good sale rate. The main
Project figures as of October 2017 are:
Total 13 stations (1 under construction, hence not in time to be financed by EC funds)
Total 156 trucks
Total 61 Partners: 22 Companies; 39 fleet operators; from 11 EU countries
Total cumulative mileage of monitored LNG trucks: 31,639,938 km (early May 2018)
Total number of fillings of Project LNG stations: about 111,000
Total amount of LNG sold by Project stations: 14,206,275 kg (early May 2018)
Average sale rate: 128 kg/filling
4
New developments have been on the side of LNG trucks, with IVECO to put on market a second Euro
VI LNG model, more powerful, i.e. the Stralis NP NP AS440S40T/P; engine: Cursor 9; with 400 HP power
delivery and 1,700 Nm torque, and twin LNG tank for up to 1,500 km running range. This was followed
in late 2017 by a third truck model, the Stralis NP 460, propelled by the the Cursor 13 engine, with
power of 460 HP at 1,900 rpm, a torque of 2,000 Nm at 1,100 rpm, and a max running range up to
1,600 km. Also VOLVO and SCANIA are now offering new Euro VI LNG models on the market, which
anyway were not launched in time to join the Project. VOLVO designed the FH LNG, and FM LNG
trucks (on market in spring 2018); they are Euro VI-compliant. Power delivery and torque are
respectively: 420 hp, with 2,100 Nm and 460 hp, 2,300 Nm. Fuel consumption is on a par with VOLVO’s
diesel engines, but 15-25% lower than for conventional gas engines. LNG is stored in tanks at 4-10 bar
and -140 to -125°C. Range: 1,000 km. In 2015, SCANIA launched on the market the P 280 model,
powered by a SCANIA Euro VI engine. In 2017, SCANIA presented the new LNG truck model, the G340
LA4x2MNA; it has two LNG tanks, with a total capacity of 300 kg (190 kg in main tank; plus 110 kg in
optional tank), LNG is stored at 10 bar, -130°C. Its running range is 1,100 km; the average consumption
is ~28 kg/100 km. Engine displacement is 9.3 litres; this 5 cylinders Natural gas engine is the OC09 102
Euro VI.
When the LNG BC Project started in 2013 the LNG infrastructure in Europe was very poor, with just
about 20-30 stations. On average 20 to 30 new stations were built per year since then, with a
significant acceleration in 2017, leading to a total at end 2017 of more than 120 public LNG stations in
operation. In 2018, 10 new stations already opened between January and April, with many more under
construction or planned to be built throughout the year. A number of additional projects have been
announced, which are expected to lead to a total of over 400 LNG stations in operation by the end of
2021.
Other projects financed by the EC (particularly under the CEF – Connecting Europe Facility –
programme) and the enforcement of the DAFI (Directive of Alternative Fuels Infrastructure), as well as
greater vehicle availability and market demand, contribute to stimulate the European automotive LNG
sector in the race to fill its gap to the LNG market in other parts of the world, such as China where it
has sky rocketed, and North America.
LNG, like CNG, can be produced from a variety of renewable, scalable and very low carbon intensity
energy sources, such as biomethane produced from organic waste and biomass through anaerobic
digestion and gasification or synthetic methane produced converting carbon dioxide (CO2) into
methane by using hydrogen produced from surplus green electricity. Renewable gas is fully
compatible with the current natural gas mix, allowing any blend and unlimited use in the existing
infrastructure and vehicles.
Liquified biomethane as biofuel for HD vehicles is a very new business. At the beginning of the LNG
Blue Corridors project, there were only a few pilot plants in Europe and globally. Its development
continued slowly in the 2013-2015 timeframe, essentially in Europe, with a few additional projects
launched.
Since 2016, the European industry has put a much stronger focus on bio-LNG, with a number of new
projects announced, to demonstrate the viability of the solution, start larger scale deployment of
production facilities and availability of bio-LNG for trucks. Even though there are still only few plants
up and running producing bio-LNG in Europe (and globally) today, significant new development is
expected in the coming years, in a growing number of countries.
In the next few years, once these projects and others will be completed, bio-LNG as a fuel for LNG
trucks is expected to be available in a significant number of European countries, including at least
Sweden, Norway, the Netherlands, the UK, Italy, Germany, France, Slovakia and Denmark. This will mark
5
the achievement of another major milestone for the market and the environment, making almost GHG
neutral operation really possible for long distance heavy duty trucks (or achieving WTW GHG
emissions reduction by at least 80% compared with diesel, depending on the biomethane source).
By 2030, it seems reasonable to expect that bio-LNG will be produced in much larger volumes, not
only from biomethane (anaerobic digestion), but also from power to gas and gasification processes,
therefore offering great opportunities for GHG emissions reduction in heavy road haulage as well as
economically affordable zero or low carbon heavy goods road transport in Europe.
6
Revision History and Statement Of Originality Revision History
Rev Date Author Organization Description
01 Nov 2017 Flavio Mariani NGV Europe
02 April 2017 Nadege Leclercq Westport Review and additions to the report
03 April 2017 Javier Lebrato IDIADA Review general content
Statement of originality:
This deliverable contains original unpublished work except where clearly indicated
otherwise. Acknowledgement of previously published material and of the work of others
has been made through appropriate citation, quotation or both.
7
Contents Executive Summary ................................................................................................................................. 3
Revision History and Statement Of Originality ........................................................................................ 6
1 Introduction ................................................................................................................................... 10
1.1 LNG Blue Corridors project .................................................................................................... 10
2 LNG Global market features ……………………………………………………………………………………………………..11
2.1 Global LNG market ………………………………………………………………………………………………………….11
2.2 The future role of Natural gas ………………………………………………………………………………………….13
3 Targets and expectations of potential partners in 2013 ……………………………………………………………14
3.1 The LNG Blue Corridors Project m…………………………………………………………………………………….14
4 European LNG market at beginning of LNG BC Project (stations, trucks, estimated sales)…………17
4.1 Automotive LNG market ………………………………………………………………………………………………….17
4.2 Project stations ……………………………………………………………………………………………………………….18
5 European LNG market at end of LNG BC Project (stations, trucks, estimated sales)……………………21
5.1 Project stations ……………………………………………………………………………………………………………….21
5.2 Automotive LNG Global market ……………………………………………………………………………………….21
5.3 Automotive LNG European market ………………………………………………………………………………….22
5.4 Bio-LNG renewable gas as fuel for LNG trucks ………………………………………………………………….25
6 Trend of station cost during Project deployment ……………………………………………………………………..30
7 Considerations about LNG retail price and NG price …………………………………………………………………32
7.1 General ……………………………………………………………………………………………………………………………32
7.2 Industrial price ………………………………………………………………………………………………………………..32
7.3 LNG fuel retail price at pump …………………………………………………………………………………………..35
7.4 Taxation - excise exemption …………………………..……………………………………………………………….39
7.5 Bulk supply price ……………………………………………………………………………………………………………..40
7.6 Break-even prices and new production ……………………………………………………………………………40
7.7 Asia's effect ……………………………………………………………………………………………………………………..42
8
8 Identification of efficient LNG European network and potential cost ……………………………………….44
8.1 Network …………………………………………………………………………………………………………………………..44
8.2 Size…………………………………………………………………………………………………………………………………..44
8.3 Location …………………………………………………………………………………………………………………………..45
8.4 Connector harmonisation ………………………………………………………………………………………………..45
9 Vehicles ……………………………………………………………………………………………………………………………………47
9.1 General ……………………………………………………………………………………………………………………………47
9.2 Vehicle models ………………………………………………………………………………………………………………..48
9.3 Trains ………………………………………………………………………………………………………………………………52
9.4 Social cost benefit ……………………………………………………………………………………………………………54
10 Market barriers/improvers ……………………………………………………………………………………………………..55
10.1 Power delivery ………………………………………………………………………………………………………………55
10.2 Running range ……………………………………………………………………………………………………………….55
10.3 Fuel price advantage ……………………………………………………………………………………………………..55
10.4 Purchase price of LNG trucks …………………………………………………………………………………………55
10.5 Boil-off …………………………………………………………………………………………………………………………..55
10.6 Traffic limitations …………………………………………………………………………………………………………..55
10.7 Fuel quality ……………………………………………………………………………………………………………………56
10.8 GHG emissions ………………………………………………………………………………………………………………56
10.9 LNG Nozzles and receptacles …………………………………………………………………………………………56
10.10 Refuelling pressure and temperature ……………………………………………………………………………57
10.11 Separation distances ……………………………………………………………………………………………………..57
10.12 Consumer information about LNG price ………………………………………………………………………..57
10.13 Parking structure …………………………………………………………………………………………………………..57
10.14 Training …………………………………………………………………………………………………………………………58
10.15 Mobile/re-locatable stations …………………………………………………………………………………………58
10.16 Flexibility of supply systems - UTS …………………………………………………………………………………59
9
10.17 Logistic hubs …………………………………………………………………………………………………………………59
11 Trend of core business LNG market ………………………………………………………………………………………..60
11.1 General ………………………………………………………………………………………………………………………….60
11.2 Top north and top south Europe's ends developments ………………………………………………….62
11.3 Europe - Russia - China international NGV corridor 2030 ……………………………………………….63
11.4 Italian infrastructure ……………………………………………………………………………………………………..63
11.5 Recent and future moves of the market, Europe and Global …………………………………………64
12 Operators of the LNG sector …………………………………………………………………………………………………..66
13 The Trans-Europe Blue Corridor Rally ……………………………………………………………………………………..70
10
1 Introduction
1.1 LNG Blue Corridors project
The LNG Blue Corridors project’s aim is to establish LNG as a real alternative for medium- and long-
distance transport—first as a complementary fuel and later as an adequate substitute for diesel. Up to
now the common use of gas as fuel has been for heavy vehicles running on natural gas (NG) only for
municipal use, such as urban buses and garbage collection trucks. In both types of application, engine
performance and autonomy are good with present technologies, as they are well adapted to this
alternative cleaner fuel.
However, analyzing the consumption data, the equivalence in autonomy of 1 liter of diesel oil is 5 liters
of CNG (Compressed Natural Gas), compressed to 200 bar. Five times more volume of fuel prevents
the use of CNG in heavy road transport, because its volume and weight would be too great for a long-
distance truck. This opens the way for LNG (Liquefied Natural Gas), which is the way globally natural
gas is transported by ship.NG liquefies at 162º C below zero at ambient pressure, The cost of energy
needed is only 5% of the original gas energy content. This state of NG gives LNG the advantage of
very high energy content. Only 1.8 liters of LNG are needed to meet the equivalent autonomy of using
1 liter of diesel oil. A 40-ton road tractor in Europe needs a diesel tank of 400 to 500 liters for a 1,000
km trip; its equivalent volume with liquid Natural gas would be 700 to 900 liters of LNG, a tank
dimension that could easily be fitted to the side of the truck chassis. LNG therefore opens the way to
the use of NG for medium- and long-distance road transport.
LNG has huge potential for contributing to achieving Europe’s policy objectives, such as the
Commission’s targets for greenhouse gas reduction, air quality targets, while at the same time
reducing dependency on crude oil and guaranteeing supply security. Natural gas heavy-duty vehicles
already comply with Euro VI emission standards, most without complex exhaust gas after-treatment
technologies, which have increased procurement and operational costs.
To meet the objectives, a series of LNG refueling points have been defined
along the four corridors covering the Atlantic area (green line), the
Mediterranean region (red line) and connecting Europe’s South with the
North (blue line) and its West and East (yellow line) accordingly. In order to
implement a sustainable transport network for Europe, the project has set
the goal to build approximately 14 new LNG stations, both permanent and
mobile, on critical locations along the Blue Corridors whilst building up a
fleet of approximately 100 Heavy-Duty Vehicles powered by LNG.
This European project is financed by the Seventh Framework Programme
(FP7), with the amount of 7.96 M€ (total investments amounting to 14.33
M€), involving 61 Partners: 22 Companies; 39 fleet operators, from 11
countries.
This document corresponds to the 7.6 deliverable within work package 7. It is a document describing
the LNG stations location in the project. This document will be available at the project website:
http://www.lngbluecorridors.eu/.
Figure 1-1. Impression of the
LNG Blue Corridors
11
2 LNG Global market features
2.1 Global LNG market
LNG is increasingly looked at as a new and promising way of Natural gas trade. It increases the
flexibility and widens the range of NG supply sources. The market of LNG is consequently growing in
most of the areas of the world. The main features of the global LNG market can be summarised as
below:
Global LNG trade in 2016: 278 Mt (+5% vs 2015) – 618 Mm3
Short term market of LNG in 2016: 73 Mt (28% of total LNG market)
Global average LNG supply price: $5.52/MMBtu ( 35c€/Kg - 150 €/m3)
Global nominal liquefaction capability as of January 2017: 340 MTPA (Million tons per year)
New liquefaction capability under construction as of January 2017: 115 MTPA (+35% by 2022)
New liquefaction capability planned in January 2017: 879 MTPA
Global nominal regasification capability as of January 2017: 795 MTPA
Capability of FRSU (floating terminals) plants as of January 2017: 83 MTPA
Global LNG vessels fleet as of January 2017: 439 ships (including FRSU)
Share of LNG in the global NG offer in 2015: 10%
The LNG market main feature trend kept showing a constant growth over the past two decades.
The global LNG imports increased by about 10% to about 290 mn metric tons in 2017, according to
the annual report of the International Group of LNG Importers (GIIGNL) released mid-April 2017, and
SHELL LNG Outlook 2018. The increase was the highest recorded since 2010, contrasting with an
average annual growth rate of 0.5% in 2012-15 and exceeding the rise 5% in 2016. [NGW Magazine]
Figure 2-1. LNG global market trend
12
Figure 2-2. LNG liquefaction terminals as of January 2017
Figure 2-3. Liquefaction capability per geographic area, in 2010, 2016 and 2022
13
2.2 The future role of Natural gas
The COP21 agreement negotiated and ratified in Paris in December 2015 will probably have a great
impact on the future mix of primary energy sources. Fossil fuels, and especially coal, will be taxed in
order to curb the markets. Coal, as gas, is predominantly used for power generation. Coal is cheap,
scalable and reliable with low or no disruptions. The same characteristics apply for gas. However, coal
emits about twice as much CO2 per energy unit as gas, which makes gas more attractive if the
consumer has to pay for the emissions. Three countries, China, US and India, currently count for 50%
of the global CO2 emissions. Thanks to lowered gas prices (shale revolution) in US, which made gas
more competitive over coal, the world’s second biggest emitter has been able to reduce its annual CO2
emissions by more than 700 million tons (about 10%) since 2007. What happened in US is likely to
happen in the two biggest coal consumers, China and India, as well. Replacing coal power plants with
gas plants has shown to be the most effective step towards a less carbon-emitting world. This partly
explains why gas consumption in IEA’s ‘2-degree scenario’ is expected to increase by 12-14% towards
2040. Gas will need to replace coal to a quite large extent. The highest gas consumption growth will
come in Asia and the Middle East when coal and oil are abandoned and replaced with gas as fuel for
power generator. Africa’s dire needs for energy and power in its race for raised prosperity, will also
play a significant role in the future hunger for gas. Building a sustainable E&P industry needs both the
industry and the government to cooperate and to wear the ‘generation perspective glasses’, in order
to become a success. [Source: excerpt from an article from Henrik Poulsen, Senior Vice President -
Government Relations at RYSTAD ENERGY]
14
3 Targets and expectations of potential partners
in 2013
3.1 The LNG Blue Corridors Project
In 2013 many European stakeholders of the NGV market did believe that the LNG Blue Corridors
Project, which was going to start, was one among the actions which might better stimulate and foster
the growth of the NGV market at the European level at that time. In considering joining this Project,
the operators did evaluate the possible synergies with their research plans in the LNG and NGV field.
They did examine carefully and with most interest the different and best options and configuration for
the involvement of their companies in the Project, for example on the following activities relevant to it:
Building of LNG + L-CNG refuelling stations along the corridor routes
Supply of LNG along the corridor routes to refuelling stations
Development and evaluation of Euro VI vehicle technologies
Study of possible solutions to improve standards and regulations related to the use of LNG as
road transport fuel
Collection/elaboration/reporting of data from demonstrated vehicles and stations
Preparation of manuals/handbooks/guidelines/press releases
Evaluation of normative implications
They took in consideration aspects such as:
Main aims of the project to match with their own targets
Partners who had already committed themselves officially to the Project, and were
progressively joining it
Extent of coverage by these partners of the proposed corridors
Expected deliverables
Cost estimate
Available funds
Financing; EU contribution to the total cost incurred by partners
Legal implications
The Project had for the European operators many points of strategic and imaging interest, such as:
The theme of “Blue Corridors” hinging on Natural gas was particularly appreciated by the
biggest gas companies trading in Europe, such as: ENI, ERDGAS, GAZPROM, GAZ DE FRANCE
(now ENGIE). In particular, GAZPROM had been fostering this concept for years, starting back
in the early nineties, for example with supporting the 1991 Rome to Kiev Blue Corridors Rally.
The LNG Project was a potential source of prestige for the partners, and could open the gate
to more operative options for them.
Vice-versa, not participating could convey to the public opinion a negative image of them not
being enough sensitive to the need for development of cleaner mobility, and of LNG in
particular, in a time when the LNG/CNG vehicle market did show signs of increasing dynamics.
The range of the operators who had already expressed their interest for this initiative did
include important competitors; hence it did seem sensible to take this challenge.
15
This initiative seemed to contain very concrete synergies with what many company were doing
already in their respective field of operation, already in the short range.
The availability of funds allocated by the EC, even if of limited entity, could have alleviated to
some extent the financial effort required to the operators to develop this sector.
The European operators attribute a great importance to the availability on the European roads of LNG
as fuel for HD long haul good transport, as a tool for increasing the energy security and for improving
the impact of transport system on the environment. In the meanwhile, they also took in consideration
the importance of the side advantage of the L-CNG option, made possible by the installation of a LNG
vehicle refuelling infrastructure. The L-CNG option allows refuelling LD CNG vehicles, be them both
private passenger cars and fleet vehicles (commercial and public fleet vehicles); it allows lower energy
consumption for the refuelling operation, thanks to substitution of the gas compressor for a liquid
pump, with the same pressure increase. The LD NGV were already largely available on the market, and
would have provided a beneficial scale effect, hence ensuring a better profitability and a shorter pay-
back time of the LNG and L-CNG refuelling station capital investment. Furthermore, including the L-
CNG option to the LNG refuelling station would have meant just marginal additional capital
investment.
The Project leaders prepared the European map with the proposed stations, as a first approach. They
covered what they knew as existing, plus the proposed ones in France, Germany, Italy and Belgium,
identified by the long distance Spanish transporters. This map had to be completed by the time.
Table 3-1. Initial set of the four corridors (Source: D 1.5 Interim progress report)
16
The main milestones of the Project are summarized in Table 3-2
period Main milestones
2013 - 2014 Some Partners left the project, such as Linde, Cloud. They received an initial budget
(pre-financing); the plan for ENOS station in Slovenia was removed from the Project
2014 - 2015 The first fleet operators started to work for the project such as LC3, ADPO,
DISTRILOG, FERCAM, MARINÉ, NINATRANS, DUARTE … MENDYRA participation was
terminated
2015 - 2016 More fleets joined in such as MAUFFREY, BERT, BERTHAUD, BAUGUINI, TIEL,
MEGEVAND, XPO, MATTHEEUWS, TJA, HAM Transportes.
HAM Criogénica participation was terminated
2016 – 2017
The latest to join were: TRANSORDIZIA, MEC, CARGAQUATRO, CODOGNOTTO,
AUTOTRANSMAR, DSP, TRANSNUGON, ESK, MEYER. Two companies dropped out
the project: HARDSTAFF and RENAULT TRUCKS
2017 - 2018 UNIPER joined the Project with the LNG station in Berlin
Table 3-2. Project Stages
17
4 European LNG market at beginning of LNG BC
Project, in 2013 (stations; trucks; estimated
sales)
4.1 Automotive LNG market
In 2013 the LNG market in Europe was just budding. Some few LNG stations, 20 or 30, mainly for
demonstration purposes, were in operation in few countries. At that time, only Spain, the UK, Sweden
and the Netherlands had LNG stations and trucks. Some more stations, in a wider range of countries
were using LNG as NG supply source, which made them independent from the gas grid; but those did
only sell CNG, obtained by pressurization and regasification of LNG under high pressure of 200 bar (L-
CNG solution). In Italy for example there were about 10 L-CNG stations before the LNG BC Project was
launched; but no station supplying LNG. The existence of these L-CNG stations did contribute to make
the operators confident on that LNG could also be sold as low pressure liquid to HD vehicles, if only
such vehicles had been put on the market:
in sufficient number
with a sufficiently wide range of models
suitable to the long haul good transport
with sufficient power delivery and torque to face the characteristics of the European road
system.
The launch of the LNG BC Project further consolidated this confidence, thanks not only to the available
financial resources offered by the EC, but also to the awareness of the availability of at least a couple
(or a couple more) of LNG stations in each European country on the main roads, as a starting point.
The operators of the logistic sector were already well aware of the potential economic benefit provided
by LNG trucks, in case of the suitable scale. And the entrepreneurial approach of the main HD vehicle
manufacturers also convinced them to start this new pathway, with an initially small fleet of trucks, to
be increased by the time if the first operational period results proved positive enough.
Having a look at other markets outside Europe, such as China and North America, also provided some
encouraging messages to the European operators. In China the total fleet of LNG trucks were huge
already then, with a national LNG vehicle fleet of 40,000 units. An inherently large fleet was in
operation also in USA.
In early 2015, there were over 50 public LNG stations in operation in Europe, including approx. 19 in
Spain, 7 in the Netherlands, 15 in the UK, 2 in Portugal, 1 in Italy, 6 in Sweden, 2 in Belgium and 1 in
France. At that time, these countries were the true LNG pioneers within Europe.
Other EC Projects came to support the NGV sector, such as the CEF program. Projects such as LNG/L-
CNG in Finland, BESTWay, Innovative gas solutionsfor road transport, GREAT, BioMovLNG, CNG
Connect, Connect2LNG, LNG Bremen and PAN-LNG have been approved for funding as part of the CEF
2014 programme, leading to the construction of approx. 15 additional LNG stations since 2015, with
more planned by the end of 2019 as these projects are still ongoing.
18
All together, the CEF and CEF Blending projects approved for funding since 2014 have enabled the
construction of approx. 20 LNG stations until now (stations in operation as of April 2018), with over
150 more that are currently in planning more or under construction.
In 2016, there were already more than 70 public LNG stations in operation in Europe, plus some private
stations for captive fleets. By end 2016, in the Netherlands there were 162 CNG stations and as much
as 21 LNG stations. In Spain there were 28 CNG and 21 LNG stations. In Italy there were 1,176 CNG, 8
LNG and 9 L-CNG stations; Italy plans to have 100 more CNG, 10 more LNG and 9 more L-CNG
stations in operation by end 2017.
The 2015-2017 period also saw new countries entering the LNG stations' game, such as Finland (1st
station in 2016), Germany (2016), Poland (2016), Austria (2017), Bulgaria (2017), Slovenia (2017) and
Czech Republic (2017). The number of countries with LNG stations in operation or planned does
continue to increase, now with Hungary (1st station in operation in March 2018), Norway (1
st station
planned for 2018), Croatia (1st station planned for 2018), Slovakia (2019) and others expected to follow
the trend. Thanks to these new projects, the network of LNG stations is becoming truly European.
Fig 4-1. EU Funded Projects developing CNG and LNG Infrastructure in Road Transport (source: NGVA Europe, September 2017)
4.2 Project stations
In the Project, the first station opened in Piacenza, Italy (ENI, built by Vanzetti), in April 2014, already
supplying a substantial fleet of trucks since the very beginning.
Also in 2014, LNG stations were opened in Orebro, Sweden (SGA), Kallo, Belgium (DRIVE), Carregado,
Portugal (DOUROGAS), Barcelona, Spain (GAS NATURAL FENOSA).
19
In 2015, LNG stations were opened in Nimes, France (ENGIE), Matosinhos, Portugal (GALP), and Elvas,
Portugal (DOUROGAS).
In October 2015 France opened in Rungis (ENGIE, built by HAM), its first public service station capable
of supplying LNG and CNG. This was the second LNG station built in France. In the Rungis station the
supply of LNG can be accomplished by pump or pressure differential with only preselect mode of
operation and without modifying the installation. It was the first LNG supply station that could operate
with this functionality. It allows refuel all types of vehicles and reduce operating costs as it enables
optionally not use the cryogenic pump.
GNVERT’s Lyon LNG station was ready by mid-2016 due to delays with the permits from the
authorities. In 2016 was also opened in Pontedera, Italy the second station of ENI, built by HAM.
In 2014 and 2015 all the other LNG stations which progressively opened could count on limited fleets
of some trucks; generally not more than three. The situation improved rapidly in 2016.
The Project experienced some difficulties along its path, related to the implementation of the planned
14 LNG stations, then reduced to 13, as well as to the different progress made by the various OEMs in
the development of LNG trucks.
The largest problem with the LNG stations was identified in Germany, since ERDGAS did not find the
business case and the Consortium was asked to find a new solution. Three companies (GASREC, GNF
and GNVERT) proposed themselves to conduct a business study and competed for the allocation of
the LNG station to them; however none of them achieved the goal. UNIPER was able to build the
station at last. As the core activity “Demonstration” could not fulfill the goals in the scheduled duration
period, a project extension was agreed for 1 year to selected partners (LNG stations and fleet
operators mainly).
The fact that one of the LNG stations of the project, i.e. that built by BRUCARGO (DRIVE), was awarded
in parallel with a TEN-T project had impact to the LNG Blue Corridors, since only 13 LNG stations were
to be constructed. The EU Commission agreed to keep the process for 1 LNG station in Germany while
the funds for BRUCARGO were used for additional trucks monitoring. It was also not necessary
anymore to have 14 LNG stations since CEF funding was supporting many LNG stations in Europe.
Some of the stations were in the beginning mobile stations, for example in the case of Lyon, Nimes
and Berlin. They were planned to become fixed stations at end of Project. This proved to be a sensible
strategy for a developing market in totally unexploited areas.
The development of the LNG market faced most problems in Germany, where only 1 station in the
Project could be opened only in late 2016 in Berlin (UNIPER). It is a mobile station, and a substitution
for a stationary one is planned in 2018. The very last station of the Project to open, i.e. the 13th
is the
one in Sines (GALP) Portugal, which could still not be opened by the end of the project in April 2018.
An LNG station was planned by the Project in the Brussels airport (DRIVE LNG/Bru Cargo). This station
was built, but as it already was granted financial incentives from another EC Project, i.e. TEN-T CEF, it
was removed from the Project. The Project initially included a station in Slovenia (ENOS), but this
station was never built due to a lack of a good business case; ENOS LNG operates anyway a small LNG
liquefaction plant in Slovenia. For this reason the stations in the project are 13 instead of 14, and the
funds available for the station in Croatia were re-allocated for more trucks/fleets. The timing of
construction of the Project stations had to take in due account the real progressive availability of
trucks.
20
At end 2015 i.e. end of the second year of the Project, 8 LNG stations (61%) had already been
constructed, including Matosinhos - Portugal, Rungis and Nîmes – France. That meant at least one
station per Corridor, already in operation or just built in 6 different countries (Italy, Sweden, Belgium,
Portugal, France and Spain). And the demonstration was taking place in at least 2 additional countries
since of course some of the LNG Blue Corridors trucks did not limit their operations to the origin
country, but travelled across national borders, as all long haul vehicles do. For example, countries like
The Netherlands and Germany had already at that time more LNG trucks on their roads. However,
there were another 5 LNG stations which could not be ready by the end of 2015/mid 2016 for various
reasons.
The Portuguese station in Elvas built by DOUROGAS had some delays due to the reallocation of its
budget – originally it was going to be built by CLOUD. Finally the Pontedera (ENI) and Sines (GALP)
stations also experienced some delays with the permits. By mid-2016, 11 stations hence 84% of the
planned stations were in operation or built. The last two came later: the one in Berlin, Germany
(UNIPER) in late 2016, and the station in Sines, Portugal (GALP) will be the last one, in 2018.
trucks Cumulative
LNG sales
Cumulative
fillings
Avg. LNG
sales/month/station
Cumulative
kilometres
Jan 2015 10 >290 tons ~3,500 10 tons ~600,000
Feb 2016 <50 >2,300 tons ~20,000 27 tons >10 million
June 2017 >110 >6,660 tons ~56,000 69 tons ~20 million
Oct 2017 >140 >10,000 tons ~78,500 63 tons >25 million
May 2018 156 ~14,200 tons ~111,000 66 tons ~32 million
Table 4-1. Project features trend
21
5 European LNG market at end of LNG BC
Project, in 2018 (stations; trucks; estimated
sales)
5.1 Project stations
participant Corridor country city opened
1 ENI MedBlue Italy Piacenza 04/2014
2 AGA - SGA SoNorBlue Sweden Orebro 04/2014
3 DRIVE WeBlue Belgium Antwerp (Kallo) 05/2014
4 DOUROGAS AtlBlue Portugal Carregado 10/2014
5 GNF MedBlue Spain Barcelona 12/2014
6 GNVERT AtlBlue France Rungis 12/2015
7 GNVERT MedBlue France Nimes 02/2016
8 DOUROGAS SoNorBlue+AtlBlue Portugal Elvas 04/2016
9 GNVERT SoNorBlue France Lyon 06/2016
10 ENI MedBlue Italy Pontedera 11/2016
11 GALP AtlBlue Portugal Matosinhos 11/2016
12 UNIPER WeBlue Germany Berlin 04/2017
13 GALP SoNorBlue+MedBlue Portugal Sines 2018
Table 5-1. The 13 Project stations
5.2 automotive LNG global market
During this period of time the automotive market of LNG has increased remarkably worldwide,
especially in Asia (China, Japan) and North America. China had already in 2013 a national fleet of
18,000 LNG buses and 45,000 LNG trucks, fueled by about 1,000 LNG stations. At end 2014 the CHINA
LNG GROUP expressed intent for direct investment in a minimum 100,000 LNG-fuelled trucks and
indirect-investment in 200,000 LNG-fuelled trucks by 2020. In 2017, the LNG trucks account for about
22
4% of the more than 6 million HD vehicles able to haul 40 to 49 tons of goods that are on China’s
roads. The national demand for LNG trucks is soaring as companies and manufacturers shift to vehicles
that run on the gas that China’s Government sees as a key part of its war against ambient air pollution.
Sales of LNG heavy trucks surged by 540% to nearly 39,000 in the first seven months of 2017 [Source
Cassie Liu, a truck analyst with the IHS Markit consultancy]. That was partly stimulated by a ban in 2017
on the use of diesel trucks to transport coal at northern ports in provinces like Hebei and Shandong,
and in the city of Tianjin.
The production of large LNG trucks broke records in 2017 in China, with a total of 96.000 LNG trucks
produced in that year; a sharp contrast to 19.600 in 2016, according to an industry report. Gas trucks
are believed to be more environmentally friendly and more economical in China, where it is estimated
that gas trucks can cut fuel costs by 61 yuan (9.5 U.S. dollars) per 100 kilometers, and the demand for
gas trucks will continue to rise in 2018. The strong growth of gas truck production is part of China's
continued battle against air pollution through encouraging the use of clean energy-powered vehicles
and tightening control over pollutant emissions from new motor vehicles. [source: NGV Magazine]
5.3 automotive LNG European market
The automotive LNG market has seen some significant increase in Europe too. The main fuel
companies have invested all around Europe in LNG stations, especially in Spain, The Netherlands, Italy
and the United Kingdom. Spain is favored by the long time existence of many (now 7) LNG terminals,
well located along the country’s coasts. The Netherlands remains as the leader of investments in
Europe, especially thanks to the allocation of public funding at very high levels (50% of the LNG
stations) the routes inside the country are not as long as the ones in the LNG Blue Corridors Project,
which focuses on medium and long distance transport. These routes are flat, and this means that also
low-powered trucks are suitable for this country. UK started very early with developing the LNG
mobility. In the UK, the Government implemented the Low Carbon initiative. The trial has had £11.5
million of funding from the UK Government to increase the number of low carbon trucks and refuelling
stations. It is set to deploy around 350 gas trucks and 28 refuelling stations. Italy can count on the
longest and widest experience with the CNG mobility sector, ranging back to the thirties of the last
century. Its CNG market still remains the greatest in Europe. In Italy there are now about 1,000,000
CNG vehicles, served by about 1,200 CNG stations (there are plans for 2,000 in total), selling about 1
billion Sm3 of CNG per year. The NGV market in Italy is facing a bit of a slow-down trend in this period,
mainly due to the competition of hybrid and LPG vehicles. This long and successful experience is now
leading to a natural prosecution on the LNG mobility field. Italy has become one of the champions in
Europe of the LNG automotive market. The operators of this sector estimate a grown demand for LNG
in the automotive market to more than 15,000 ton in 2017 (LNG + L-CNG), i.e. two times as much as in
2016. The total number of LNG stations has grown to 15 in 2017, compared to 6 in 2016. The LNG
truck national fleet amounts in 2017 to 400 dedicated vehicles, plus 100 dual fuel, LNG/diesel. The
National Strategic Plan (Quadro Strategico Nazionale) is predicting the total demand of LNG as
automotive fuel in 2030 to amount to 2.5 million ton/year, and a total of 800 LNG refuelling stations.
This network would be sufficient to refuel a national fleet of 30,000 LNG HD vehicles. The L-CNG
refuelling stations could also increase their total demand of LNG to about one million ton/year. Finally,
in 2030 the application of LNG to the industrial market might demand for more than 2 million ton/year
as substitution of traditional fuels; the residential market application might demand for half a million
ton/year of LNG. [Source: LIQUIGAS]
23
A substantial help also came from the Trans-European Transport Network Executive Agency (TENT-T
EA) call 2012, which recommended funding 7 projects related to LNG, some under development. They
are:
Flexible LNG bunkering value chain on the Spanish Mediterranean coast [2012-ES-92034-S]:
approx. 1 M€ funding, to support removing the barriers for an LNG bunkering in the
Mediterranean coast.
LNG hub in the northwestern Iberian Peninsula [2012-ES-92068-S]: 0.6 M€ for the Port of Ferrol,
focusing on the design of facilities, procedures to apply LNG as fuel for vessels.
LNG Rotterdam Gothenburg [2012-EU-21003-P]: approx. 34 M€ funding for the LNG break bulk
facility at the Port of Rotterdam and the small-scale satellite terminal in Gothenburg.
SEAGAS [2012-EU-21006-S]: approx. 1 M€ funding support for feasibility studies about LNG
bunkering facilities in 2 ports: Roscof (France) and Santander (Spain).
LNG Pilot Project about bunkering infrastructure solution and pilot actions for ships operating in
the Motorway of the Baltic Sea [2012-EU-21009-P]: approx. 23 M€.
LNG Masterplan for Rhine-Main-Danube [2012-EU-18067-S]: approx. 40 M€ funding for feasibility
studies, trials and pilot actions related to inland vessels.
Study to test the potential of Bio-LNG to contribute to European Renewable energy targets based
on a pilot refuelling and storage network trialled with HGV fleet operators in the UK [2012-UK-
26061-S]: 5.7 M€ funding for pilot studies to test the Bio-LNG in a live trial with HGV operators
using a pilot network of open access storage and refuelling terminals. It includes fixed and mobile
stations. This Project has similarities to the LNG Blue Corridors, and will be deeply monitored. Also
Gasrec, partner of the LNG Blue Corridors, was proposing this topic funded by TEN-T, and it is
expected to have a good exchange of information to understand the impact of the Bio-LNG in
Europe.
When the LNG Blue Corridors FP7 Project started, the regulatory framework related to LNG was not
fully developed. This situation has changed substantially, and nowadays LNG technology is mature and
can be approved and certified. The publication and entrance in force of UN Regulation 110.01 in 2013
has been one of the key items for the success of the project since it opens the possibility to register
vehicles using LNG as a fuel throughout Europe. Furthermore, ISO standards that were initially in
preparation have developed the requirements to be fulfilled by the LNG Refuelling Stations. The use of
common standards and regulations guarantee the safe use and the compatibility of the LNG vehicles
and the LNG refuelling stations around Europe. A not negligible amount of work is still to be done in
the field of certification - standardization and some technological aspects should be improved. The
estimated total number of public and private LNG stations in Europe is in excess of 150 as of early
2018. An average sale rate for them can be expected at 1,000 ton/y as starting point, leading to an
initial LNG automotive market in Europe of 150,000 ton/y, as conservative estimate.
country Public + private
LNG stations
(2018)
Public CNG stations, including
L-CNG stations (2016)
Private CNG
stations
Planned new LNG stations –
short term (2018 - available
info)
Austria 1 172 5
Belgium 6 76 2 2
Bulgaria 0 125 2 1
Croatia 0 2 3 1
24
Cyprus 0 0 0
Czech Republic 1 143 41
Denmark 0 15 1
Estonia 0 6 0
Finland 4 27 (of which 1 L-CNG) 0
France 18 51 (of which 6 L-CNG) 150 17
Germany 3 883 67 3
Greece 0 10 2
Hungary 0 10 16
Ireland 0 1 2
Italy 22 1,176 (of which 10 L-CNG) 45 14
Latvia 0 0 1
Lithuania 0 3 6
Luxemburg 0 7 0 1
Netherlands 24 162 (of which 2 L-CNG) 15 3
Norway 0 7 3 1
Poland 4 27 (of which 1 L-CNG) 4 3
Portugal 6 12 (of which 7 L-CNG) 1 1
Romania 0 1 0
Serbia 0 13 5
Slovak Republic 0 11 0
Slovenia 0 4 0 1
Spain 31 44 (of which 16 L-CNG) 0 3
Sweden 6 167 60 1
Switzerland 1 140 5
UK 30 (inc. 15 priv.) 20 (of which 4 L-CNG) 15
25
TOTAL 156 3,315 (of which 47 L-CNG) 451 52
Table 5-1. The European LNG infrastructure as of April 2018 (NGVA Europe’s estimate, based on available information; some of the
listed L-CNG stations also sell LNG in liquid form; some other don’t)
Table 5-2. The main features of the Project stations, as of end September 2017 (available information)
5.4 Bio-LNG, renewable gas as fuel for LNG trucks
LNG, like CNG, can be produced from a variety of renewable, scalable and very low carbon intensity
energy sources, such as biomethane produced from organic waste and biomass through anaerobic
digestion and gasification or synthetic methane produced converting carbon dioxide (CO2) into
methane by using hydrogen produced from surplus green electricity. In Europe, this liquefied
26
renewable gas is often referred to as “bio-LNG” or “liquefied biomethane” (other terms are also found,
e.g. “LBM” for “liquefied biomethane”, “liquefied biogas” and “LBG” e.g. in Sweden). Renewable gas is
fully compatible with the current natural gas mix, allowing any blend and unlimited use in the existing
infrastructure and vehicles.
In March 2018 NGVA Europe and EBA (European Biogas Association) released a report on renewable
gas in transport (“Renewable Gas in Transport - Opportunity to fast accelerate decarbonisation with a
clean and sustainable solution”, EBA and NGVA Europe, March 2018). This study has explored the
benefits of natural gas combined with renewable gas as a transport fuel, both looking at the
greenhouse gas (GHG) emissions reduction and improvement in the air quality by a progressive
substitution of gasoline and diesel. The EBA-NGVA analysis quantified the possible GHG emission
reductions of renewable for heavy duty vehicles (HDVs) in 2030, in comparison with diesel. When
comparing these fuels from a well-to-wheel perspective for HDVs, the study shows that renewable gas
can produce total CO2 reduction over truck lifetime of 968 to 2315 ton depending on the renewable
gas source.
Liquified biomethane used as biofuel for heavy duty vehicles is a very new business. At the beginning
of the LNG Blue Corridors project, there were only a few pilot plants in Europe and globally, the
following ones being known by the LNG BC project partners:
- One in the Altamont Landfill near Livermore, California, USA, which was the world’s largest
landfill gas to LNG plant when Waste Management Inc. and Linde North America started its
operation in November 2009;
- One in Albury, Surrey, the UK, operated by Gasrec, producing liquefied biomethane from
landfill to fuel commercial vehicles in the UK;
- One in Lidköping, Sweden, which started operation in summer 2012, initially run by Lidköping
Biogas AB (now Air Liquide), producing transport fuel for cars, trucks and buses in both
gaseous and liquefied form.
The development for bio-LNG continued slowly in the 2013-2015 timeframe, essentially in Europe, with
a few projects launched e.g. near Oslo in Norway (it has been opened in February 2014 by Cambi AS,
with a bio-LNG production capacity of 11 tons per day – source:
http://www.biogaspartner.de/fileadmin/biogas/documents/Kurznachrichten/2016/eng/2016_03_21_Pur
ac_Puregas___bio_LNG_presentation.pdf) and in the Netherlands. Several bio-LNG pilot projects have
been experimented in the Netherlands, including the following ones:
- First Dutch pilot plant by Rolande LNG, Gastreatment Services and Attero at the Wijster site of
Attero, with production capacity of 177 kg of bio-LNG per hour / 1,550 tons per year, start of
operation in 2014 (Sources http://www.rolandelng.nl/nl/news/rolande-attero-bio-lng.htm and
https://www.coebbe.nl/sites/default/files/documenten/Bio-LNG-Ook-een-green-deal-Brabant-
Carlijn-Lahaye-Attero.pdf)
- Small scale fiel test at Landschap Vallei in Veluwe, with Cirmac raw biogas upgrading to
practically pure biomethane and Osomo liquefaction using a Stirling Cryogenerator, with a
liquefaction capacity of about 7.5 kg per hour. (Source:
- https://groengas.nl/documenten/factsheet-productie-van-bio-lng-in-een-opkomende-lng-
markt.pdf)
- At Accres in Lelystad, DMC biogas upgrading and Osomo's Stirling cryogenerator used for
liquefaction. (Source: https://groengas.nl/documenten/factsheet-productie-van-bio-lng-in-
een-opkomende-lng-markt.pdf)
27
- Gastreatment Services in Haarlem, with a full-fledged liquefaction system with a capacity of
122 kg bio-LNG per hours. (Source: https://groengas.nl/documenten/factsheet-productie-van-
bio-lng-in-een-opkomende-lng-markt.pdf)
Since 2016, the European industry has put a much stronger focus on bio-LNG, with a number of new
projects announced, intended to demonstrate the viability of the solution, start larger scale
deployment of production facilities and availability of bio-LNG for trucks. Even though there are still
only few plants up and running producing bio-LNG in Europe (and globally) today, significant new
development is expected in the coming years, in a growing number of countries, as stated by the
following examples:
- Announced in March 2016, the Biokraft Norway plant intended to be Scandinavia’s ‘largest
biogas plant to provide fuel for buses’. It is planned to be located at the Norske Skog Skogn
paper mill near Trondheim, with a system supplied by Wärtsilä using Purac Puregas process
converting cleaned biogas from fishery waste and residual paper mill slurry into liquefied
natural gas fuel. For this plant, Wärtsilä claimed a novel natural gas liquefaction technology
based on readily available, well proven components, “specially designed to liquefy small
methane-based gas streams”. Initial production capacity is planned to be 12.5 tons of liquefied
biomethane per day, then doubling to 25 tons per day. (Source: Fleets and Fuels, March 21,
2016 and
http://www.biogaspartner.de/fileadmin/biogas/documents/Kurznachrichten/2016/eng/2016_0
3_21_Purac_Puregas___bio_LNG_presentation.pdf)
- In France, the first bio-LNG demonstration (pilot) project is BioGNVAL, located in Valenton,
operated by ENGIE’s subsidiary LNGENERATION, coordinated by SUEZ and with Cryo Pur in
charge of biogas purification and liquefaction. This bio-LNG project started in 2013 and the
production site was inaugurated in May 2015. Demonstration project period was October 2015
- April 2017. (Sources: http://www.engie.fr/actualites/biomethane-liquefie-premiere-industrie/
- http://www.gaz-mobilite.fr/actus/cryo-pur-biogaz-biognl-bioco2-interview-simon-clodic-
1171.html)
- In the Netherlands, in addition to the above mentioned pilot projects, a number of other bio-
LNG projects are under development. Rolande LNG has been awared EU funding from the CEF
2017 programme for its BIOLNG4EU project, which is expected to enable the company to get
bio-LNG to the market faster. The goal of the project is to install two bio transformation
stations (BTS) and four Bio-LNG fuel stations in the Netherlands and Belgium. The two BTS’s
will transform locally produced biogas to liquefied Bio-LNG. This action is part of a global
project of 50 LNG and Bio-LNG refuelling and 15 bio transformation stations that will be
established gradually close to large distribution centres and/or to major highways along the
TEN-T Core network Corridors in North Western Europe. (Sources:
https://www.lngworldnews.com/rolande-to-make-a-push-for-bio-lng/ -
https://www.ngvglobal.com/blog/rolande-says-end-fossil-era-trucks-step-closer-0728 -
https://ec.europa.eu/inea/en/connecting-europe-facility/cef-transport/biolng4eu)
- As for Germany, Titan LNG and Osomo Projects signed in November 2015 a partnership
agreement to realize a Bio LNG production facility planned to be the first in Germany. Osomo
Projects represents iLNG, the owner of the certified and patented Bio LNG liquefaction
technology. (Source: http://titan-lng.com/en/bio-lng-for-germany/)
- Also in Germany, the LNG Bremen project has been approved for EU funding from CEF 2014
programme, enabling HGM to build a bio-LNG production unit in Bremen as well as a supply
system to stations. The action is a study and full-scale real-life deployment project of a
liquefaction and supply facility for LBG at the port of Bremen. (Source:
https://ec.europa.eu/inea/en/connecting-europe-facility/cef-transport/planning-construction-
demonstration-and-market-roll-out)
28
- Then, German energy company Erdgas Südwest GmbH announced in March 2017 a new bio-
LNG production plant using Puregas upgrading technology supplied to Wärtsilä. Wärtsilä
reported that the technology for this plant represents a new and unique response to market
needs to liquefy and store methane-based energy streams. Both gas cleaning and liquefaction
are cost- and energy efficient, thereby making profitable projects possible even for smaller gas
streams. (Source: http://www.puregas-solutions.com/second-bio-lng-plant-puregas-
solutions/)
- In Italy, there are at least ten projects for bio-LNG production plants, with production capacity
from 5 to 50 tons/day. (Source: Consorzio Italiano Biogas
https://www.dena.de/fileadmin/dena/Dokumente/Veranstaltungen/EBC_2017/Vortraege_EBC/
panel2-2-Maggioni.pdf)
o Cooperative 3A “Assegnatari Associati Arborea” project in Arborea, Sardinia is
planning to produce ~4.5 tons of bio-LNG per day using Galileo Cryobox and to build
L-CNG stations to use it as fuel for trucks and other vehicles. (Source:
https://oilnonoil.it/wp-content/uploads/2016/09/Pieroni_Case-study_limpianto-di-
biometano-di-arborea.pdf)
o Caviro distillery project is planning to produce 8 million Sm3 of bio-LNG per year from
grape waste of member wineries.
o S.E.S.A. (Società Estense Servizi Ambientali S.p.A.), one of the most important refuse
collection and treatment companies in Italy, based in Veneto region, has been
authorized a production plant of 4,500 Sm3/hour of bioLNG and bioCNG, which will
fuel 150 waste collection and transportation trucks.
o Cryo Pur announced one tender won for a project in Italy.
- In France, there are also several bio-LNG projects in preparation. At least two more bio-LNG
production plants are planned with Cryo Pur equipment, one in Angers (expected in 2018) and
another one (Source: https://www.biogas2020.se/wp-content/uploads/2017/11/nr-8-
201711cryo-pur-presentation-skive.pdf). As part of the CEF funded BioMovLNG, Proviridis is
planning the installation of a bio-LNG production unit at a Waste Water Treatment Plant.
(Sources: https://www.afgnv.info/attachment/599777/ - http://www.gaz-
mobilite.fr/actus/biomovlng-reseau-francais-stations-gnl-proviridis-1039.html)
- In Slovakia, the project « LBG: Fuelling Renewable Transport” was approved for funding as part
of the CEF 2016 programme and will include the realization of a bio-LNG production facility in
Slovakia, together with a network of stations and roll-out of LNG trucks in the Visegrad
countries. (Source: https://ec.europa.eu/inea/en/connecting-europe-facility/cef-
transport/liquiefied-biogas-fuelling-renewable-transport-visegrad)
- In Northern Ireland, the first ever bio-LNG production project was launched in July 2016 by
Greenville Energy and Cryo Pur in Tyrone, with planned production capacity of 3 tons of bio-
LNG per day. Greenville Energy was already producing biogas from anaerobic digestion, based
on waste from dairy and other food industries. With the new project, excess biogas production
will be transformed into bio-LNG. This first commercial bio-LNG production unit from Cryo Pur
was commissioned in October 2017. (Sources: http://www.gaz-mobilite.fr/actus/cryo-pur-
lance-premiere-installation-bio-gnl-irlande-du-nord-1304.html -
https://www.biogas2020.se/wp-content/uploads/2017/11/nr-8-201711cryo-pur-presentation-
skive.pdf)
- In Denmark, GreenLNG A/S intends to develop a bio-LNG production plant in the port of
Hirtshals. Planned production capacity is 160 tons per day / 70 million Sm3 per year and first
delivery expected in Q1 2020. This project was submitted and rejected for CEF 2017 funding
but may be confirmed at a later stage. (Sources: http://www.gaz-mobilite.fr/actus/europe-
projets-gnv-ecartes-programme-cef-1833.html -
http://www.golng.eu/files/Main/GoLNG_2017_conference/7_Green%20LNG_HRO.pdf)
29
In the next few years, once these projects and others will be completed, bio-LNG as a fuel for LNG
trucks is expected to be available in a significant number of European countries, including at least
Sweden, Norway, the Netherlands, the UK, Italy, Germany, France, Slovakia and Denmark. This will mark
the achievement of another major milestone for the market and the environment, making almost GHG
neutral operation really possible for long distance heavy duty trucks (or achieving WTW GHG
emissions reduction by at least 80% compared with diesel, depending on the biomethane source).
By 2030, it seems reasonable to expect that bio-LNG will be produced in much larger volumes, not
only from biomethane (anaerobic digestion), but also from power to gas and gasification processes,
therefore offering great opportunities for GHG emissions reduction in heavy road haulage as well as
economically affordable zero or low carbon heavy goods road transport in Europe.
30
6 Trend of station costs during Project
deployment arket at end of LNG BC Project, in 2018 (stations; trucks; estimated s
Before the start of this Project, the construction cost of the very first LNG refuelling stations did tend to
be very high, mainly due to lack of standards and lack of experience, which had to be remedied with
some redundancy. A first generation LNG refuelling station might even cost about 2.0 million Euros.
The second generation stations take profit of some experience gained meanwhile, and have in general
lower CAPEX, but still tend to be quite expensive, in this case due to low scale effect.
The increase trend of number of LNG stations during the project is all in all not negligible and quite
interesting. An average rate of about 30 new LNG stations were built per year. More stations can be
counted in this respect, if including the stations only delivering L-CNG to their customers, as in the
total network there are stations selling both L-CNG and LNG in liquid form, but also stations selling
only L-CNG, as e.g. some 9 stations in Italy. In many cases, even if maybe not always, these L-CNG
stations are more or less ready to enlarge the range of offered fuels, extending to LNG with a limited
additional investment which is just a fraction of CAPEX (LNG dispenser, LNG low pressure pump if
needed, LNG conditioner heat exchanger, if needed). This pace of 30 new stations per year is anyway
not yet intense enough to originate the scale effect which can further curbe in a detectable way the
cost of stations. This cost was and still is only depending on the adopted technology and solutions. For
one thing, this increase in the number of stations involves now 14 countries, and hopefully some more
in the future; hence the number of new stations in each country is for sure below the desirable level to
affect significantly the cost of station components, let alone the lump sum cost. Then, most LNG
station/plant components are specific to LNG, so no or very limited synergy is available with other
cryogenic or normal temperature operational components. The used materials and metals are valuable
and expensive: stainless steel and special alloys. The technology needed for some of them, primarily
the cryogenic tanks and pumps, is quite sophisticate, so the market needs very high numbers to have
access to a large scale effect on the side of costs. Also, some technology needs such as boil-off
recovery and LNG truck tank vent recovery, will play against reduction of average station prices. In the
early steps of this market development, quite often the LNG station manufacturers resolved to offer
their customers special promotional prices, with which they accepted to renounce to a part of the
legitimate and normally expectable margin and profit, to encourage their customers to take the
challenge, for sake of promotion of this new pathway. With the development of this sector, at least in
the beginning of the subsequent stages, any possible intentions for reduction of prices due to scale
effect would hit against the need of the manufacturers for some recovery of the lost profit which they
did sacrifice with the early contracts.
The improvement of the technology, and the harmonization of technology solutions, service
conditions and components, in particular connectors, will offer some help to reduce the CAPEX and
OPEX to a certain extent. A big help can come in this respect from harmonization of standards for LNG
stations in Europe (e.g. EN ISO 16924). To make one of the best examples, the future advisable general
adoption of a single solution for service conditions, for example low pressure and temperature (now
down to 8 bar and potentially only low pressure – 3 bar – in the future), besides being profitable in
terms of longer running ranges and residence times of LNG in tank, and larger sale rates per individual
filling, would allow some economy in CAPEX, as less components would be needed installing in the
stations (e.g. LNG conditioning heat exchanger, pump etc.). The increase of the LNG HD vehicle fleets
will also improve all business cases, which might have an indirect twofold effect on prices. On the one
hand it would make more and more operators to be willing to build their own LNG station, be it
31
private or public. This will eventually provide the desired scale effect. On the other hand, the new
stations built in a more settled market would probably have to be bigger than the ones in the former
generations; hence more expensive. This would mean higher CAPEX; but despite this, the expectable
pay-back time would be shorter, due to the better utilization rate of larger fleets.
Another deliverable of this Project has identified the typical average cost of the LNG refuelling stations,
as a function of their type/technology. The following table is an excerpt of D 3.8, cost analysis of LNG
refuelling stations. The content of the table is still applicable to the general situation in Europe at end
2017.
type Stationary station Mobile station
technology saturated LNG
at 7-8 bar
saturated LNG
and CNG (L-
CNG)
super
saturated (18
bar) and
saturated LNG
super
saturated and
saturated LNG
and CNG (L-
CNG)
saturated LNG
at 7-8 bar
super
saturated and
saturated LNG
and CNG
(L/CNG)
Common
cost
estimate
171,000
Specific
cost
estimate
284,000 681,000 374,000 771,000
Total cost
estimate
455,000 852,000 545,000 942,000
Common
cost actual
67,000
Total cost
actual
470,000
580,000
÷
814,000
563,000
971,000
÷
1,150,000
301,000
473,000
Table 6-1. Typical CAPEX of LNG refuelling stations (excerpt from D 3.8, rounded figures) – stationary stations and mobile stations -
Euros
This analysis does not ignore, but intentionally does neither take in consideration the potential effect
on the prices/costs in the European LNG market, which could derive from import of technologies and
products coming from other LNG makets and operators in the world.
32
7 Considerations about LNG retail price and NG
price
7.1 General
At present it is not possible to address to any official document about fuel price forecasts, which is a
rather complex prevision to do, especially in the energy and fuels market. Some of the deliverables of
the LNG Blue Corridors Project address the LNG market items. These documents might give some hints
on the possible future trend of costs and prices. What is possible at the present stage of the LNG
market development about this item is just some general considerations, and the personal opinion of
Project Partners, about factors that can affect the future price trends, in one direction or another.
The price of LNG at pump, as that of any other automotive fuel, is entirely at the option of the retailer,
and subject to market dynamics of offer/demand. It consist of three components:
industrial price; including production and transport costs plus wholesale and retail margins
excise duties (tax)
VAT (tax)
In all Europe, the VAT is applied on the sum of the industrial price plus the excise duties; this means
that there is a tax applied over a price component that is already a tax.
7.2 industrial price
The industrial price could be affected in a positive way (meaning lowered), by a constant increment of
the global LNG market, leading to a larger offer. The global LNG production capability is now about
300 million ton/year. Also the increasing availability of this fuel, now coming from new sources, such as
those in North America (e.g. the LNG terminal in Louisiana operated by Cheniere), and Australia (e.g.
the new NG liquefaction plant of Gorgon, operated by Chevron Corp, on the Barrow island, capable of
15.6 million ton/year), and in future also coming from new sources in East Africa, will probably have a
positive effect, provided the new production pathways (e.g. fracking), are not too expensive, especially
in the case of low Oil prices, and get reasonable breakeven prices to support and justify E&P costs,
which seems to be the case often enough.
As a matter of fact, the LNG industry in these very time is trying to figure out what is the safest way to
manage the temporary oversupply while avoiding a shortage and associated price spikes early next
decade. As the production surplus of LNG begins to rise, questions are being asked about how to deal
with this in a way that does not destroy value.
US has exported $139mn worth of LNG to China in the first seven months of 2017. US LNG deliveries
to China have surged in this period, as low prices have encouraged buyers to switch from coal.
On 8th
June 2017 two small but significant sales and delivery of spot-priced LNG from the US, i.e. the
equivalent of 95 million Nm3 produced by CHENIERE ENERGY, from its liquefaction terminal in
Louisiana, landed on the shores of Poland at Swinoujscie LNG Terminal. Following this, also Lithuania’s
state gas trader, LIETUVOS DUJU TIEKIMAS received a supply of US LNG at its Terminal in the port of
Klaipeda on 21t August 2017. For decades, the countries in the CEE region have mostly purchased
33
Natural gas from a sole supplier, GAZPROM, which has traditionally asked higher prices compared to
western hub prices, in long term contracts with take-or-pay stipulation. As an immediate consequence,
the Russian producer has already shown more contractual flexibility.
With an increasing lot of new sources available from emerging suppliers, and traditional LNG providers
like Qatar looking to supply new markets, coupled with easily accessible and more affordable “floating
storage and regasification units” (FSRU) infrastructure, LNG is getting ever closer to becoming a global
commodity, that could not only supply Natural gas to countries like Poland, but also to other states in
Central & Eastern Europe (CEE), even those that are landlocked.
Energy savings and the incremental recourse to renewable energy sources will be asked for by the de-
carbonization strategies of the Governments, to curb traditional fossil fuels consumption in future. The
resulting migrating demand for fuels among different countries and areas of the globe is also affecting
the routes and final destination of LNG supply, and the end industrial prices are influenced by this
varying offer/demand in a hardly predictable way.
Just as an example, exports of LNG to Japan from the east coast of Australia crashed to a 17-month
low in September 2017, while volumes to China edged higher to a new record high, on October 6
[Source: Gladstone Ports Corp (GPC)]. Japan received just 60,539 metric tons of LNG in September
2017 from the Port of Gladstone in Queensland; hence down by 82% both year on year and month on
month.
Nowadays the energy companies are investing in the LNG sector, with the construction of Natural gas
liquefaction terminals in the production sites, and LNG reception and re-gasification terminals in the
consumption areas. More plans are in place also for smaller intermediate LNG storages and terminals,
to create a capillary infrastructure, also aimed at the use of LNG in the automotive market, and in the
maritime fuels market.
According to a study done by McKinsey, the global LNG market is long, with supply exceeding demand
and may be long until the middle of the next decade. Yet there is still a long list of liquefaction projects
that are hoping to enter the market in the coming years. The global LNG supply glut that we are facing
today is exacerbated by the 100mtpa of new export terminal capacity currently under construction in
the US and Australia. By 2019, the oversupply peaks at roughly 60mtpa. The forecast deem the market
to remain oversupplied unless today’s low prices can stimulate a demand recovery. However, to date,
the demand response to the low prices seen in the past two years has been limited. Given the market
may remain oversupplied until 2024 and that it takes three to five years from Final Investment Decision
(FID) to construct and start up a liquefaction terminal, one could argue that in theory, no new
liquefaction terminals need to take FID for at least the next two years. In reality, new supply could still
hit the market if it is able to displace more expensive existing supply or stimulate new demand
currently served by piped gas or an alternative fuel. This likely tends to keep supply price of LNG in the
lower range. [Source: Energy Insight by McKinsey].
According to BP Energy Outlook, nearly one third of the present growth in the LNG supply potential
occurs over the first four years of the Outlook, i.e. until 2022, as a series of projects currently under
development are completed. Then, after a temporary lull while this initial wave of LNG supplies is
absorbed, the potential LNG supply growth is assumed to resume at a more moderate pace.
In this case, there is a risk that this second wave of LNG supply growth is slow to materialize causing a
temporary period of tightness within LNG supplies. Asia remains the largest destination for LNG. China,
India and other Asian countries all increase their demand for LNG, helping gas to grow faster than
either oil or coal in each of these economies.
34
SHELL mentions as well forecast for transport as well as new investments needed in 2020 to meet
demand. The global LNG market has continued to defy expectations, growing by 29 million tonnes in
2017, according to SHELL's latest LNG Outlook. Based on current demand projections, also SHELL sees
anyway the potential for a supply shortage developing in the mid-2020s, unless new LNG production
project commitments are made soon. [SHELLL LNG Outlook 2018 - https://www.shell.com/energy-and-
innovation/natural-gas/liquefied-natural-gas-lng/lng-outlook.html ]
Also the Malaysian state energy company PETRONAS expects the global LNG market to remain
oversupplied until as late as 2023. Rising LNG production over the last two years, mainly from Australia
and the United States, has exceeded demand and depressed prices. Asian spot LNG prices LNG-AS are
now down by around 70% from early 2014. PETRONAS, in September 2017 scrapped a proposed $29
billion LNG terminal project in western Canada, as market conditions made the project economically
unviable. The PETRONAS Chief Executive Officer Wan Zulkiflee Wan Ariffin told Reuters in an interview
that things are volatile, but at present the firm predicts LNG market balance in 2023. The market will
tighten when demand centers in developing economies start growing, as current low prices mean
more take up of LNG supplies. PETRONAS is the sole manager of Malaysia’s oil and gas reserves,
making it the world’s third-biggest LNG exporter after Qatar and Australia.
Figure 7-1. Possible additional future LNG plants in the world (Source: McKinsey)
The changing interconnection (correlation) of price between Oil and Natural gas will have an impact as
well. The price of Natural gas is expected to become in the future more independent in its trends from
the price of Crude Oil.
European provisions such as the Directive 2014/94/EU, DAFI, are mandating the construction of an
infrastructure for alternative fuels, including LNG. All this is expected to have a strong stimulation
effect for the LNG automotive market. The cost of the construction of new LNG stations, and the need
for the pay-back of this cost in a reasonable length of time might lead to an increase of the end
industrial price of LNG as automotive fuel. It is also true that this tendency to increasing price may be
mitigated by a positive scale effect, above a certain consumption threshold. Investors look very close
to pay-back time, and a large market may allow acceptable pay-back times even with moderate sales
margins.
35
On the other side of the coin, in the middle-long term, we will likely face a strong increase of LNG fuel
consumption in the maritime sector; this might result in some increase of LNG price at the production
level, as a consequence or reaction to growing demand. That’s what finance is about.
7.3 LNG Fuel Retail Price at the Pump
The European Natural gas industry has been adopting for nearly six decades LNG as one of the forms
of Natural gas supply for general applications, through re-gasification at receiving terminals. The
market of LNG as automotive fuel is younger than that instead. It has been just ground for research
and demonstration and pilot initiatives across the last couple decades, and it was just budding on a
larger scale back in the beginning of this decade, through which European operators have
accumulated some good experience already, even if the European LNG automotive market is not yet
as large as that in other parts of the world, such as China and North America. The market increase has
been interesting anyway also in Europe, as we have now more than 120 public LNG refuelling stations,
plus some private for captive fleets, most of which have been built in the last five years. Undoubtedly,
part of the merit for this goes to the LNG Blue Corridors Project, which pushed the button for example
in Italy, and to some other projects, financed by the EC, which believes in this fuel having a promising
future. But for sure the automotive market is showing an increasing interest for LNG. Some European
countries e.g. Spain, Netherlands, Italy, UK, France, have done already substantial investments in this
sector. In Germany there are now three LNG quite small stations, but there are also short-term plans
for further development, and larger plants. In a recently published study (2017), “Initiative
klimafreundlicher Strassenguterverkehr” the German Ministry of Transport and Digital Infrastructure
BMVI identifies LNG among the applicable solutions for long-distance haulage, especially in the short
term and for the next 10 to 15 years. In general, the LNG fuel prices at pump have kept quite constant
over the start-up period so far in Europe, similar to the case of CNG, which price trends show more
stability over time compared to gasoline, diesel and even LPG.
History of retail fuel prices at the pump in Europe (c.f. below figure with example for Italy) show that
CNG and LNG are significantly cheaper than diesel and gasoline, but also that their price is much more
stable over time, thus making it much easier for fleet operators to predict their fuel costs.
36
Figure 7-2. Example of automotive fuel price trends in Italy, over last ten years, as of end October 2017 - price at the dispenser,
including tax - all prices in €/litre, except CNG: €/m3(the same price of CNG applies to LNG in Italy; both CNG and LNG are sold in
€/kg; price in €/m3 = €/kg x 0.7 kg/m3) [source: elaborations based on data from: https://www.prezzibenzina.it/]
Analysis of LNG and diesel retail prices in Italy in January 2018 (based on LNG price information from
metanauto.com) shows that LNG is 52% cheaper than diesel at the pump (comparing LNG in liters of
diesel equivalent with diesel in liters). Italy is one of the European countries with the most attractive
LNG price vs. diesel at the pump, partially due to high diesel price. As 1 kg of LNG does not contain
the same quantity of energy as 1 liter of diesel, a direct comparison of LNG price in €/kg and diesel in
€/L is not possible. In order to allow for an accurate comparison of fuel prices, the approach taken here
is to compare prices of similar energy content for both fuels, in this case liters of diesel and “liters of
diesel equivalent” for LNG. This is calculated assuming 1 kg of LNG equals 1.38 liter of diesel
equivalent.
In the UK, LNG has been on average over 40% cheaper than diesel every year since 2016, and this price
gap is expected to increase steadily in the coming years to reach 50% price differential already from
September 2018, as shown in the below figure 7-3.
0,5
0,7
0,9
1,1
1,3
1,5
1,7
1,9
may
-07
oct
-07
mar
-08
ago
-08
ene-
09
jun
-09
no
v-0
9
abr-
10
sep
-10
feb
-11
jul-
11
dic
-11
may
-12
oct
-12
mar
-13
ago
-13
ene-
14
jun
-14
no
v-1
4
abr-
15
sep
-15
feb
-16
jul-
16
dic
-16
may
-17
oct
-17
Fuel price trend - Italy
gasoline €/l diesel €/l LPG €/l CNG €/m3
37
Figure 7-3. Example of LNG vs. diesel automotive fuel price trends in the UK, history since 2013, projections until 2021. Source:
Gasrec, April 2018 – fuel price at the dispenser, excl. VAT and other taxes
In the Netherlands, in February 2018 LNG was 38% cheaper than diesel at the pump, comparing as
above LNG in liters of diesel equivalent with diesel in liters (analysis based on data from PitPoint
accessed from https://www.pitpoint.nl/app/uploads/sites/4/2018/04/Prijshistorie_lng_pitpoint.pdf).
This price gap has been similar in 2017, after recovering from significant diesel price drop early 2016.
Figure 7-4. Example of LNG vs. diesel automotive fuel price trends in the Netherlands, history since 2012. Source: PitPoint, April
2018 – fuel price at the dispenser, VAT included, diesel price in €/L, LNG price in €/kg.
The available fuel price examples, summarized in the below table, show that in most of the European
countries that already have a significant number of LNG trucks in operation, LNG is sold at an
attractive price compared with diesel, i.e. approx. 40% cheaper than diesel or more. Given the limited
38
number of LNG trucks and stations in some countries and the lack of publicly available LNG price
information, it is not possible to provide a complete fuel price comparison for all European countries. It
should be noted that, even for the countries show in this table, the information for each country is
partial (based on available data) and does not necessarily reflect the average price of LNG in the
country.
Country Diesel price
in €/L
LNG price
in €/kg
LNG price
in €/LODE
LNG price savings
vs. diesel
Italy 1.44 0.95 0.69 52%
Spain 1.15 0.81 0.59 49%
France 1.39 1.04 0.75 46%
Netherlands 1.25 1.09 0.78 38%
United Kingdom 1.41 1.34 0.97 39%
Table 7-1. Summary of LNG vs. diesel automotive fuel price examples in February 2018. Source: Westport analysis based on LNG
price data from metanauto.com, gibgas.com and other public data sources and diesel price data from
https://ec.europa.eu/energy/en/data-analysis/weekly-oil-bulletin Feb 12, 2018. Fuel price at the dispenser, VAT included, diesel
price in €/L, LNG price in €/kg and €/liter of diesel equivalent (LODE).
Further to this, the national strategies of LNG fuel retail prices at pump have been mainly oriented to
the market development and promotion, and still are today. So the price of LNG tends to be set to a
very similar level to that of CNG, or even the same price is adopted for both, in terms of €/kg. In future
the industrial part of LNG price, when the market will be more mature, might face some slight increase,
if the operators will resolve to change their strategy, and will apply some premium to LNG over CNG,
in consideration of its value and advantage for the long haul transport operators; but this can happen
only in case of higher prices of diesel, in which case the price differential between LNG and diesel
would likely remain at least as high as today. At present in most of the countries the operators still
seem quite cautious on this item, as they perfectly know that the differential in prices between diesel
and LNG directly affects the propensity of HD vehicle fleet owners to go for the new pathway.
The Fig 7-5 shows the evolution of the price at pump of the LNG stations in the project.
39
Figure 7-5 Evolution of the public price of all LNG BC refueling stations [source: D 6.3]
7.4 Taxation - Excise exemption
On the side of taxation, long haul HD vehicle fleet operators are offered in some cases a partial excise
exemption on diesel. In Italy for example, a partial excise rebate of 0.21418 €/litre is available to diesel
truck operators, applicable to the fuel consumption in the summer 2017 [Testo Unico delle Accise -
Art. 4-ter, comma 1, lett. f, of D.L. 22 ottobre 2016, n. 193, converted into Law 1° dicembre 2016, n.
225, and Art. 24-ter, comma 1, of Decreto Legislativo n. 504/95]. In Portugal, the government has
decided to reduce the diesel tax by 10c €, reaching an amount below the limit value of the directive on
the taxation of energy products. The owners of the LNG refuelling stations are free to set the LNG fuel
prices they deem appropriate, as it is the case of any fuel. But they must not forget this partial excise
exemption granted to diesel when setting the LNG price at pump, so to keep the suitable end price
differential between diesel and LNG, if they want to stay in the market.
Further on the side of taxation, some national Governments have so far supported the CNG and LNG
automotive fuel pathway, by means of reduced excise duty e.g. Czech Republic, Finland, France,
Germany, Italy, Sweden (for bio-methane), or even no excise duties e.g. Belgium, Croatia, in
consideration of the offered environmental benefits, and taking into account the increasing share of
Natural gas coming from renewable sources (Biogas and Power to gas, turned into CNG and LNG), in
substitution of fossil. This is an important part of a European shared strategy aimed at supporting the
environment friendly fuels. To make just a couple of examples, Italy has the largest CNG market in
Europe, and also has a strongly growing LNG market. The Italian Government has applied so far a very
low excise duty on Natural gas used as automotive fuel. A new subsidy campaign has been launched in
September 2017 in support of purchase of clean vehicles, including those on LNG. Also Germany has
had a similar supporting strategy for NGV, now ranging up to 2026. Today it seems rather too early, if
40
anything, for the national Governments considering to abandon or mitigate the present strategy of
favorable excise duties for CNG and LNG. And this applies also to the mid-term. It is important that
this is kept for the future, at least until this market can be considered sufficiently mature to stand a bit
more taxation. This applies to all the countries in Europe.
7.5 Bulk supply price
Because of the present overcapacity, global prices for LNG are deemed as just too low right now to
send the price signals needed for investments into more liquefaction, in the opinion of the experts
attending a conference in Japan in late 2017. This means that the industry could see a shortfall in a few
years, according to an article on Reuters. This also means that there may not be enough LNG for some
of the countries depending heavily on LNG as Natural gas import source, such as Japan, which is the
world’s biggest LNG buyer. To avoid a shortfall, some of the market operators, such as TOTAL called
for more investment into LNG in the future, but investments in such projects can run in the billions.
[source: TOTAL SA Chairman and Chief Executive Office Patrick Pouyanne]
LNG projects typically require billions of dollars of investment over many years of development. The
LNG industry has usually relied on long-term contracts linked to Oil prices to ensure producers can get
financing on favorable terms. An increased competition among LNG suppliers has resulted in buyers
seeking better prices. Especially under the “Fukushima effect”, the spot LNG prices in Asia were at
more than $20 per million British thermal units (mmBtu) in 2014 (~0.956 $/kg, based on a LNG LHV of
49.5 MJ/kg), but with the more recent surplus they are now trading in 2017 at less than $6 per mmBtu
(~0.287 $/kg). According to some experts, a sweet spot in pricing of between $7 and $8 (0.335-0.382
$/kg), would stimulate investment into new projects.
7.6 Breakeven prices and new production
The Asian LNG markets will be paramount for East African LNG export. Similar to the oil market, the
North American shale industry did turn the gas markets upside down in 2015. The rapid increased
production sourced from shale gas reservoirs made US self-supplied and left the country with a
significant export potential. The price of Henry Hub plummeted, and the same effect spilled over to
the (Asian) LNG markets. The new LNG price became suddenly dependent on the Henry Hub pricing,
as US commenced to export most of its excess production as LNG to other continents. LNG is now
priced as Henry Hub + liquefaction- and transport costs. The large numbers of sanctioned LNG
projects in Australia and US before the price crash has left the world currently swamped in LNG.
RYSTAD ENERGY has estimated that the LNG market will remain over supplied to 2023, with a peak in
2020, where the supply capacity excess the demand by almost 70 bcm/y. However, they predict LNG
demand to continue its strong growth as gas is becoming a more and more important primary energy
resource in Asia and the Middle East. By the end of the 20’ies, it will be a deficit of more than 200
bcm/y, if no new LNG projects are sanctioned for development. It is likely that by 2023 the world will
face a deficit on LNG, due to lack of LNG project sanctioning the last couple of years. The year 2023
coincides with prediction of the first LNG to be exported from East Africa. East Africa can/will be
instrumental in filling the deficit supply gap in the second half of the next decade. If no projects are
sanctioned for development the coming years, the LNG deficit by 2030 will surge to more than 200
bcm/y. East African LNG will of course face strong competition from other producers, especially Qatar,
Australia and Papua New Guinea, in the race for the rising demand in South-East Asia and the Middle
41
East. East Africa benefits from its reasonable vicinity to India and Pakistan compared to Australia. The
majority of the growing gas production in the Middle East will be needed for domestic purposes to
cover an increased gas consumption. Hence, the production increase in Qatar and Iran will not find its
way to Asia. It is predicted that the production deficit gap in 2025 will be about 50 MTPA (70 bcm/y),
which soon need to be covered. By assessing breakeven prices for potential future LNG projects it is
possible to predict which projects will most likely be developed, and to which breakeven cost. An LNG
price at 7-8 $/MMbtu (0.335-0.382 $/kg) is needed in order to develop another 50 MTPA by 2025. Fig
7- 7 ranks potential future LNG-projects to come on stream by 2025 by breakeven price. Projects to
the left have the lowest breakeven costs. The development of Area 1 offshore Mozambique (in red
circle) has the 3rd
lowest breakeven price (6.2 $/MMbtu, i.e. ~0.297 $/kg) among the most profitable
projects believed to come on stream by the mid of next decade. [Source: Henrik Poulsen Senior Vice
President - Government Relations at RYSTAD ENERGY]
Figure 7-6. Expected trend in LNG supply/demand (Source: RYSTAD ENERGY)
42
Figure 7-7. Breakeven prices for new LNG production (Source: RYSTAD ENERGY)
7.7 Asia’s effect
In October 2017, the emergence of LNG hubs in Asia could be expected to be a game-changer for the
region’s future energy mix, global energy security, infrastructure investment as well as the
environment. The expanding LNG hub-based pricing could stimulate regional gas demand from
emerging importers, and encourage policies to progress coal substitution for NG in large, heavily-
polluted Asian cities. The Indian government announced launching a NG trading platform in 2018.
Japan and India cooperate to promote a flexible and open LNG market. But Asian global gas players
must press ahead with regional hubs rather than getting distracted by short-term market opportunities
that slow them down. The 2014-2017 low oil price and the return of competitive oil-indexed LNG
prices in Asia have removed the urgency for buyers to diversify away from oil-indexed pricing and
bring hub-based formulas to the region.
As Brent crude prices have plummeted since mid-2014, oil-indexed NG prices have dropped ~40%. As
a result, Asian buyers have entered into competitive LNG contracts that are indexed to oil – adhering
to traditional price formulas. More than 11 million tons (~20 billion Sm3) of NG in new oil-indexed
contracts have been signed in 2017.
LNG stakeholders, governments, industry, and lenders, should not limit to short-term considerations.
Oil prices are likely to spike again in future. They are advised on focusing on regional hubs to help
importers get more competitive and transparent pricing systems. That would also enable exporters to
trade more easily in the global market with new and smaller buyers. It also facilitates selling their
surplus and uncommitted spot volumes at a time of supply glut. The emergence of LNG hubs in Asia
43
has become credible with the ongoing transformation of the global LNG market that started in 2014.
The rapid growth in LNG supplies, rising volumes of flexible spot supplies, and the increase in the
number of market players have led to more serious steps to create one or several regional hubs. Asian
LNG hub initiatives would differ from existing hubs in the US or Europe by generating liquidity through
increased LNG flows within the region, rather than through NG pipeline integration or domestic
production. Some NG hub initiatives in Asia are underway in different progress e.g. in Singapore,
Shanghai, Tokyo. An Asian market-based reference price would put the industry in a better position to
confidently trade LNG or invest in new LNG infrastructure projects. This new hub-based Asian LNG
price benchmark could make LNG prices competitive and transparent. The main benefits of this
approach are:
energy security, as a trusted hub contributes to a more liquid and better functioning market;
genuine Asian LNG price marker that helps resolve the current investment paralysis, paving the
way for decisions to build new liquefaction plants which could transform LNG project finance;
more affordable and accessible LNG that strengthens the environmental prerogative to favor
cleaner gas over coal and fuel oil in the power sector and polluted cities.
If Asia’s LNG hub initiatives fail, the current status quo for Asian LNG pricing will continue, at the risk of
darkening LNG’s future as the appropriate fuel in Asia at a time of energy transition, demand
uncertainty, and environmental degradation. With Asia serving as the engine for global LNG demand
growth, the resolution of the Asian LNG pricing issue would transform not only Asia, but also the
outlook for global LNG markets.
44
8 Identification of efficient LNG European network
and potential cost
8.1 Network
The Directive 2014/94/EU, DAFI, mandates the build-up of sufficient infrastructure, but is not
mandating any particular pattern for the refuelling stations network. It gives anyway an indication of
suitable maximum distances between filling points, as 150 km for CNG stations and 400 km for LNG
stations in 2025. At first this was proposed as a mandatory prescription; then some constraint on this
parameter were realized, and the prescription become just suggestion. European countries have
different characteristics in terms of land, woods, mountains and lakes. There are large portions of un-
inhabited land in some of the countries, especially in northern ones. There are regions full with a large
number of lakes, like Finland, and large forests, like Germany. Europe has a complex system of high
mountains ranges, e.g. the Alps, Apennines, Ardennes, Balkans, Carpathians, Pyrenees, etc. All these
characteristics are bound to make a mandatory maximum distance between stations not advisable in
many cases. Instead in the more industrial areas with dense population rates, the distances between
stations can and should be shorter than the limits the Directive suggests. In early 2015 one of the LNG
stations in northern Europe caught fire. Due to this, it had to be shut down for a period of time for
repair, during which the truck drivers passing by in that area had to face a long diversion from their
itinerary, of more than 200 km for the whole trip back and forth. This can happen also in case of less
dramatic instances, such as components break-down, extraordinary maintenance interventions, strikes,
vandalism acts, etc. And this can eliminate all the economic advantage offered by the price differential
between diesel and LNG. Unexpected and unpredictable situations such as this one must be taken in
account; truck drivers must be offered alternative options for refuelling, just in case. The LNG truck
driver should plan more carefully his trip beforehand, compared to the case of diesel trucks, taking
into account the development rate of the LNG network. Anyway all the main roads, be them
motorways or highways, must offer the LNG truck drivers the possibility to refuel with limited diversion
length, which means waste of money and time. A well set network, with a multiple option offer, also
goes in the direction of a suitable level of commercial competition between operators, leading to fair
prices, at least as theoretical tendency.
8.2 Size
Due to the current low consumption of some of the stations in Europe, partial charges must be
planned for the stationary tanks of the LNG stations. This of course increases the OPEX cost. But this
will stop being an issue as soon as the market grows and settles to higher levels, which appears now
quite likely to happen in the short-term. Based on the current LNG tank capacities, it seems they can
perfectly refuel trucks on daily basis with no risk of fuel depletion. The capacity tank is high in most of
cases of the stations at present in operation (>60m3). In some cases, stations must be charged with
fuel every 2 days like in the case of Piacenza, but in other cases, almost 3 weeks like in the case of
Barcelona.
45
8.3 Location
The installation of a LNG refuelling plant inside existing diesel and gasoline station seems the solution
to be preferred, as it will take profit of already existing land, structures, safety system, building and
personnel. The existing liquid fuels station must be chosen in consideration of parameters such as:
Distance from the nearest LNG supply site (LNG terminal; small scale local terminal; small scale
local LNG storage tank); a number of plans are in place for small scale LNG; with the exception
for the mono-fuel LNG stations built inside or close to the LNG terminals, or inside some of
the small scale plants, the supply of LNG to the station must involve the LNG tanker truck or
the LNG train. The trip of the LNG tanker truck supplying the fuel to station should not be too
long; distances in the order of 300-500 km are acceptable anyway. For trains this distance can
be longer. In the case of LNG stations built inside the logistic hubs, the best option for LNG
supply seems to be by rail; rail carts can transport more product per trip compared to tanker
truck; trains are not prone to traffic conditions, and less prone to weather conditions; the
specific transport cost is probably lower also (train fuel cost is shared with the rest of train
load; no hotel and meals cost of drivers; salary cost of train drivers is shared with the rest of
train load; if the train only transports LNG, the very large amount of product reduces the
specific cost).
Importance of the road system in the proximity of the station; motorways and highways
should be the preference, but sometimes the bureaucratic process and contractual aspects in
the case of motorways might be an obstacle to this operation. For example, a limited time
concession reduces the pay-back expectations, hence the investing propensity. Logistic hubs
seem to be a preferable option when available, also due to scale effect and possible synergies.
Available space inside the station for the additional devices to be installed; national LNG
station norms are different in Europe between countries on this item; sometimes there is still
no norm for LNG, in which case generally a suitable professional risk analysis is part of the
design process; the adoption and publication of EN ISO 16924 LNG refuelling stations, may
simplify this aspect. The norm was positive under ballot. The publication was done in early
2018.
Available space inside and around the station to meet the requirements of internal and
external safety distances (same as above point).
8.4 Connector harmonisation
Three connector profiles are at present on the market:
JC CARTER
PARKER KODJAK
MACROTECH
46
Figure 8-1. Nozzles compatibility
They are not fully interchangeable in terms of compatibility with the respective receptacles, one to
another; in particular PARKER KODJAK cannot connect to the receptacles that are suitable to the other
two connectors. But the situation is becoming increasingly complex now. At present the
connectors/receptacle system is, or should be in compliance to the international standard ISO 12617.
ISO is now working on another connector profile standard, the ISO NP 21104, aimed at better
performance in terms of:
Lower service pressure; 18 bar instead of 31.
Extremely low spillage of LNG at decoupling: < 1cc, to minimize GHG emissions, and avoid risk
of cold burn.
The activity is also aimed at some additional improvements, which in the opinion of most experts of
this sector, can anyway be reached already with the present profile (ISO 12617):
Easy and simple handling (“Diesel-like”); possibility of one-hand operation.
A single line for the delivery and for venting, including grounding; i.e. combining filling and
gas return over the same hose, thus improving user friendliness and reducing the amount of
potential leak sources.
No need for special protection to be worn during filling (i.e. special clothes, gloves, face shield
mask etc.).
Proper swivel functionality as part of the nozzle to prevent hose failure due to torque forces.
Mechanical interlock functionality; mechanically secured.
This standard might be published in 2019 or 2020.
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9 Vehicles
9.1 General
In the Project 100 LNG HD vehicles were planned. At mid-2015 this level was already reached. At end-
2015 the monitored trucks, representing the Euro V and Euro VI technologies, of the LNG Blue
Corridors had successfully covered more than 4 million kilometres using only (Spark-Ignited) or
partially LNG (Dual-Fuels) and had consumed more than 1,200 Tons of LNG. The Project had a total of
115 trucks monitored during the Q3-2015, with budget still to be allocated for other companies. So
the goal to reach more than 120 trucks as was expected was reached.
During the period 2014 to 2015 an important technical achievement of the LNG sector was the
certification of an IVECO LNG truck to EURO VI. IVECO Stralis Euro VI became available in the third
quarter of 2014 at commercial level, while the fully compliant R110 LNG tanks were approved in July
2014 and available from February 2015.
At end-2015 the Project the demonstration in different corridors was at this stage:
AtlBlue: Portugal, France and even Spain
MedBlue: Mainly routes from Spain to Italy, operation in the North of Italy
SoNor: Combination of AtlBlue and MedBlue routes
WEBlue: Belgium, The Netherlands and even Germany
Also at end-2015 the balance of Dual-fuel and Spark-Ignited trucks was about 30% Dual-fuel and 70%
spark-ignited trucks. Among these trucks, about 33% of them (36) were Euro V and 66% were Euro VI.
During Proyect deployment, about 30 additional LNG Euro VI trucks progressively joined in, which
perfectly meet the request of the EU Commission regarding the number of LNG trucks. In the end the
Project had the participation of more than 140 trucks, thus exceeding by 40% the original plans.
Figure 9-1. Project truck distribution at mid-2017 (78% IVECO; 22% VOLVO)
48
By early May 2018, the truck fleet had run a total of 31,639,938 Kilometres, and had consumed a total
of 14,206 tons LNG, with 111,000 refuelling, and an average refuelling rate of about 128 kg LNG per
fueling operation.
One of the initial aims of the Project was to know how dual-fuel engines were going to be able to
achieve compliance with the Euro VI emission limits and to understand the new efficiencies, which
should be closer to Diesels. New Emissions UNECE Regulation 49-06 and EC 595/2009 (Euro VI,
amended in 2014 with the Dual-Fuel requirements), regulate the emissions of the engines (CO, THC,
NHMC, CH4, NO2, PM, PNP, NH3) and the THC limits are especially difficult to fulfil for Natural gas
engines (lean burn or dual-fuel) because of the very low new limit for Hydrocarbons. Dual-fuel engines
were at the beginning of Project the only ones which provided more than 340 HP (IVECO Stralis
dedicated engine delivered at that time 330 HP). Companies like IDIADA have developed engines,
demonstrators mainly, which deliver up to 560 HP with replacement of Diesel higher than 70% in some
conditions and better than Euro V (EEV emission levels), making them the choice preferred then by
fleet operators which were new to using LNG or for those who needed to ensure the operation of the
truck at any time and did not have guaranteed gas deliveries. Also these engines units were preferred
by those companies who had to transport goods on routes where a power of 340 HP is not considered
enough because of the profile of the route (as for example MONFORT or MATTHEEUWS). In the
majority of the cases of fleet operators, the standard configurations for the trucks are, regarding the
engine, 450 HP or more. The fuel savings and vehicle reliability are, for the fleet operators, the main
concern. Aspects like the fuel consumption efficiency of Euro VI Natural gas engines when compared
to the diesel units is of high interest and therefore the fuel consumption of the bigger NG engines is
crucial for the transport sector LNG adoption. The CO2 reduction is also critical, and the reduction
achieved when compared to Euro VI diesels or Euro V diesels/gas engines is one of the most
interesting topics to be explored. Savings between 6% and 10% are well within reach normally.
9.2 Vehicle models
All Euro VI truck models from OEMs were supposed to be in the market in early 2014. But until late
2016, because of different reasons, there were only Euro VI trucks provided by IVECO. These launching
trucks delays make the construction of most stations start with delays as well. Some stations started to
be built late because approval issues. A budget was available in the Project for the theoretical VOLVO
Euro VI trucks which was not finally used. The LNG market in Europe did tend to be affected by a
certain lack of truck models; VOLVO offered at the beginning a dual-fuel model, followed by a more
sophisticated and powerful one. This came on the market too late for joining effectively the Project.
HARDSTAFF dealt with dual-fuel vehicles. It went into administration at the beginning of 2015 and a
new company, Vayon Group, took over their dual-fuel technology. As consequence, HARDSTAFF left
the Project. RENAULT TRUCKS did also withdraw from the project. The company tried to be involved
with a spark ignited truck based on its current commercial product D-WIDE CNG, however finally the
management decided for internal reasons they could not participate in the LNG Blue Corridors project,
so RENAULT left the Project in 2015, because of lack of commitment in development of prototypes.
IVECO has been since the beginning very committed to the LNG market and to the Project. The first
generation IVECO LNG Stralis has a Chart LNG tank, 26”diameter x 90” wide, with a net capacity of 511
litres, as well as 4 CNG tanks of 70 litres capacity each. The CNG tanks are used to ensure system
sealing and to ensure the vehicles can be moved if they are stopped for a long period of time. The
working pressure of the LNG tank is set to 8.5 bar, which means an LNG density of about 0.395 kg/litre.
Therefore a total of 201 kg of LNG and 45 kg of CNG is available. In 2016 IVECO introduced to the
market a new model Stralis NP NP AS440S40T/P, propelled by the Cursor 9 engine, with increased
49
power delivery to 400 hp, 1,700 Nm torque and increased running range to 1,500 km, with the twin
LNG tanks. IVECO sold 400 LNG trucks already at end 2015. By mid-2017 up to 1,300 LNG Stralis NP
400 trucks were sold in Europe which shows a real market interest for this side of the NGV sector. It is
the first NG truck specifically designed for long-haul operations and the only truck running on CNG
and LNG to deliver the power rating, comfort, transmission technology and fuel autonomy to suit long
haulage missions. With more than 22,000 units sold, IVECO claims position as the absolute market and
technology leader in Natural gas commercial vehicles. IVECO has at present 90% of the LNG market in
Europe.
In October 2017 IVECO has secured the largest deal for Stralis NP vehicles to-date, with 500 new trucks
set to enter operation with the pan-European transport and logistics specialist, the Belgian Jost Group.
The first 150 vehicles will enter operation during 2018, with the full fleet to be in service by 2020. The
500 Stralis NP trucks will replace 4 to 5 years old diesel-powered vehicles in the firm’s fleet of 1,400
trucks and 3,000 trailers. The company already operates 132 Stralis vehicles, including two running on
CNG. The Company begins a strategic move away from its dependence on diesel and towards green
logistics, as requested by its customers, who are demanding a more sustainable transport. The plan of
the Company for the next three years is to have 35% of its fleet running on LNG. The group is also
supporting this with an investment in its own LNG refuelling infrastructure, with plans to open up to
three filling stations within its major operating centers in Belgium.
In late October 2017 IVECO has presented to the public its new Stralis NP 460 at its heavy trucks center
of excellence in Ulm, Germany. Classed as the most sustainable truck ever, the Stralis NP 460 achieves
close to zero emissions on bio-LNG, cutting CO2 emissions by up to 95% when running on compressed
or liquefied biomethane. The Stralis NP 460 is fitted with the most powerful Natural gas engine on the
market, the IVECO Cursor 13 NP engineered by CNH Industrial’s powertrain brand FPT Industrial. It has
got the latest-generation automated transmission. The Cursor 13 NG engine delivers power up to 460
HP at 1,900 rpm and torque up to 2,000 Nm at 1,100 rpm. The Stralis NP 460 delivers a 99% reduction
in particulate matter, a 60% reduction of NOx in comparison with Euro VI limits; noise emission level is
less than 71 decibels. The truck’s double LNG tank version ensures a range of up to 1,600 kilometers. It
offers up to 15% less fuel consumption and up to 9% lower Total Cost of Ownership than a diesel
truck. [Source: NGV Journal – October 31]
Figure 9-2. IVECO LNG truck
In August 2017 the first LNG filling was done from Rolande at Gate terminal to a LNG truck with LNG
as engine fuel. This was the first case ever of a LNG tanker truck fueled with LNG, i.e. the same fuel that
the vehicle transports. So far, generally the LNG tanker trucks have been running on diesel. Also,
50
subsequently, during the Oil&Nonoil fair in Rome on 11th and 12th October 2017, a new IVECO LNG
Stralis Natural Power 400 CV LNG tanker truck was in exhibition, and this was the second case. This is
also a new step forward, allowed by the recent amendment of the ADR directive on the transport of
dangerous goods, in force since January 2017. The second initiative in Italy is the merit of the
Company TRANSADRIATICO, from Grottammare (San Benedetto del Tronto), which is active since 1951
in transport and logistic of liquid fuels. The Iveco truck set has been arranged by OMPS Macola, which
is also working on a second vehicle with the same features. The LNG transport service that this
Company plans to offer, starting from the main LNG terminals in Europe, will take profit of an
electronic satellite data communication system. The customer will hence be able to remote monitoring
the state of transport, product conditions and all the operations done by the truck driver, besides all
normal information provided by the traditional vehicular GPS sets.
The first SCANIA LNG truck was the P 280 model, launched on market in 2015, powered by a SCANIA
Euro VI engine.
Figure 9-3. SCANIA LNG truck
More than 100 SCANIA LNG trucks are to be used in northern Germany in late 2017, in an initiative to
make the transport activities of the Volkswagen Group more environmentally compatible. The VW
project is supported by the German Government, associations and gas suppliers. SCANIA maintains
that its trucks, with an LNG powertrain emit up to 20% less CO2 than comparable diesel engines. The
use of regional and local biogas even reduces CO2 emissions by as much as 90%. In addition to the
improvement in the carbon dioxide balance, these powertrains emit some 95% less nitrogen oxides
(NOx). Particulate matter emissions are almost completely avoided (-95%). Compared with diesel
engine trucks, the noise levels produced by combustion are reduced by about 50% (-3 db). The
commitment to the use of LNG trucks is part of the Green Logistics initiative of Volkswagen Group
Logistics. This is based on the “TOGETHER 2025“ Strategy under which the Volkswagen Group has
committed itself to responsible management of the environment and the continuous reduction of
emissions. The objective of the Green Logistics initiative is to ensure sustainable logistics within the
Volkswagen Group. During AUTOPROMOTEC in Bologna on 22-26 May 2017, SCANIA has presented
its new LNG truck model put on the market, the G340 LA4x2MNA. It has two LNG tanks, with a total
fuel capacity of 300 kg (190 kg in the main tank on the left of truck, plus another 110 kg in the
optional one on the right side), LNG is stored on-board at a temperature of -130°C and pressure of 10
bar. It has a running range of 1,100 km, with an average specific consumption of about 28 kg/100 km.
This innovative SCANIA LNG truck is propelled by the 9.3 litres 5 cylinders Natural gas engine OC09
102 Euro VI. In November 2017 SCANIA launched a new, more powerful NG engine Euro VI. So now
SCANIA is hence offering on the market LNG trucks with three engine options:
9.3 litres, 5 cylinders - power: 280 HP at 1,900 rpm – torque: 1,350 Nm at 1,000 – 1,400 rpm
51
9.3 litres, 5 cylinders - power: 340 HP at 1,900 rpm – torque: 1,600 Nm at 1,050 – 1,400 rpm
13 litres, 6 cylinders - power: 410 HP – torque: 2,000 Nm at 1,100 – 1,400 rpm
Characteristics: Otto Cycle SI, stoichiometric combustion, turbocharged with Wastegate, Scania EGR (5-
20%), multipoint injection, 3 way cat.
In fact, most OEMs, such as VOLVO, had in the beginning no commercial versions for Euro VI LNG
trucks was seen as a barrier since many fleet operators seemed to prefer this OEM, and no commercial
versions were expected from VOLVO before 2018. Therefore the project has only the IVECO solution
for Euro VI, as the VOLVO LNG trucks in the Project are only Euro V, dual-fuel. In a press release in late
2017, released by Lars Mårtensson, Director Environment and Innovation at VOLVO Trucks, VOLVO
maintains that by replacing diesel with LNG or biogas, CO₂ emissions from heavy trucks can be
drastically reduced. LNG is today used primarily in industrial operations, but it has excellent
prerequisites for being a competitive vehicle fuel with considerable environmental benefits. This is the
opinion of VOLVO Trucks, which is now intensifying its development of natural gas-powered trucks for
heavy regional and long-haul operations. Reducing climate-impacting emissions from heavy
commercial fleets is a challenge that engages politicians, transport purchasers, haulage companies and
vehicle manufacturers. Many of VOLVO customers and their customers already work hard to reduce
their environmental footprint. Regulations will drive the development of lower emissions, where the
firm see a clear possibility for increasing LNG market shares as a vital part of the solution. The vision is
that trucks from VOLVO will eventually have zero emissions, although the way of achieving that is not
by one single solution but rather through several solutions in parallel. Natural gas is mainly a fossil
fuel, but it can produce 20% lower CO2 emissions than diesel. If biogas is used instead, the climate
impact can be cut by up to 100 per cent. Biogas is thus far only produced in limited quantities, but has
a good potential already in the mid-term. The long-term availability of Natural gas is excellent in a
global perspective. VOLVO shares the opinion that this is an important condition for large-scale
expansion, as is a competitive price. In many European countries, natural gas costs less than diesel. A
strategy for expanding LNG infrastructure is also included in the European Commission’s and member
states’ action packages for securing Europe’s long-term energy supply. VOLVO believes that this
makes LNG the best widely available climate alternative on the market for long and heavy transports.
What is needed now is gas-powered trucks that can compete with diesel in terms of performance and
fuel consumption, and continued expansion of LNG infrastructure. In both cases major progress has
been achieved. [Source: Lars Mårtensson VOLVO Trucks].
At last, during the 14th
edition of the Solutrans, held on 21st to 25
th November 2017 at the Paris
Eurexpo, with the theme: “Performance au service de demain”, VOLVO Trucks France put in exhibition
for the first time its last innovation product: the FH LNG, which will be on market in spring 2018. This
innovative technology represents a considerable step in terms of fuel cost, productivity and emissions.
VOLVO Trucks is now introducing Euro 6-compliant HD trucks running on LNG or biogas. The new
trucks have the same performance, drivability and fuel consumption as VOLVO’s diesel-powered
models. Furthermore, the new trucks’ CO₂ emissions are 20–100 per cent lower compared with diesel,
depending on choice of fuel. The new VOLVO FH LNG and VOLVO FM LNG are available with 420 or
460 HP for heavy regional and long-haul operations. Instead of an Otto cycle engine, which is the
conventional solution for gas-powered vehicles, the VOLVO FH LNG and VOLVO FM LNG are powered
by the G 13 C engines utilizing Diesel cycle technology. VOLVO’s 460 HP gas engine delivers maximum
torque of 2,300 Nm while the 420 HP version produces 2,100 Nm. This is the same as VOLVO’s
corresponding diesel engines. What is more, fuel consumption is on a par with VOLVO’s diesel
engines, but 15 to 25% lower than for conventional gas engines. In order to maximize the driving
range, LNG is stored in the tanks at 4-10 bar pressure at a temperature of -140 to -125 °C. The biggest
52
fuel tank variant contains enough LNG for a range of up to 1,000 km. When driving, the fuel is warmed
up, pressurized and converted into a gas before it is injected into the engine. In order to ignite the gas,
a tiny quantity of diesel is added at the moment of injection. A 100% reduction of CO2 emissions
requires that fossil diesel is replaced with HVO (Hydrogenated Vegetable Oils) and combined with bio-
LNG. VOLVO Trucks is now working together with gas suppliers and customers to develop the
expansion of LNG infrastructure in Europe. This development is also being supported politically in
many countries and by the EU.
Figure 9-4. VOLVO LNG truck
VOLVO new NG and biogas trucks received Italy’s Sustainable Truck of the Year 2018 award. It was
handed over at a ceremony in connection with the Ecomondo exhibition in Rimini on 7th
November
2017. Behind the Sustainable Truck of the Year award is Vado e Torno, one of the truck magazines in
Italy, in cooperation with Italian university Politecnico di Milano. [Sources: NGV Journal – VOLVO]
9.3 Trains
Railway trains are out of the scope of the LNG Blue Corridors Project, apart from being a possible and
interesting way to supply LNG to inland applications. This document is anyway focused on the market
development of automotive LNG. This form of transport may have a not negligible impact on, and
synergy with the market of LNG; so some attention also to trains is devoted in this document. The
railroad sector is potentially of some interest for LNG, as there still is a part of the railroad system
which is not electrified, and is today the realm of diesel engines. The LNG application as fuel for train is
just budding. Some few initiatives have been launched in the recent years in North America and in
Europe.
In 2017, BRYANSK MACHINE BUILDING PLANT, part of the TRANSMASHHOLDING group, delivered the
LNG-powered TEM19 locomotive to Russian Railways. The construction of the locomotive is part of the
Russian Railways’ effort to replace diesel fuel with Natural gas. The total investment program provides
for the purchase of 484 locomotives at a cost of 60.2 billion roubles. According to the company, the
world’s first locomotive to be powered by LNG was delivered to the Yegorshino locomotive depot at
Sverdlovsk Railways. The development of the six-axle TEM19 shunting locomotive with a gas-piston
engine began in 2012. The gas engine is manufactured by MAMINYKH VOLGODIESELMASH in
Balakovo. TEM19 consists of the driver’s cab, a cryogenic unit with a system of gas preparation and
LNG feeding, a motor-generator set, a cooling system, an equipment chamber, an electrodynamic
53
brake equipment module, and a compressor unit. LNG is stored in a removable cryogenic tank based
on a 20-foot container.
In July 2017, GAZPROM GAZOMOTORNOYE TOPLIVO has started fuelling Russian railroads with LNG,
in the station of Egorshino, in Sverdlovsk region. At present three engines are running on LNG, in the
section Egorshino-Serov-Sortirovochny of the railroad line of Sverdlovsk. One is a dual-fuel diesel
engine switcher; the other two are dedicated main-line gas turbine locomotives. The rail station in
Egorshino also has now an LNG stationary tank, which is supplied through tanker trucks by GAZPROM
GAZOMOTORNOYE TOPLIVO, under a contract signed with Russian railroads which amounts to a total
supply of 600 tons LNG. The plan is to install fueling depots along the non-electrified railroad sections.
In April 2017, VTG Aktiengesellschaft, European wagon hire and rail logistics company, loaded an LNG
tank car with cryogenic LNG at Brunsbuttel Ports’ Elbe port for the first time, in cooperation with
CHART FEROX A.S. and PRIMAGAS. The companies also built the tank car’s tank. More than 80 m3 of
LNG was pumped into the wagons from two PRIMAGAS LNG trucks. This is yet another milestone in
the development of LNG transportation via rail. With a volume of about 111 m3, the LNG tank car can
carry approximately 95-100 m3 of product. This corresponds to an energy value of about 600,000 kWh
per wagon. Even industries with a very large energy requirement can be supplied permanently with
LNG in this way. In cooperation with Brunsbüttel Ports as an LNG terminal location, using the LNG tank
cars to supply the Baltic Sea ports is deemed to be a conceivable idea.
In late 2017 the Members of the Baltic Sea Region LNG cluster, representing Lithuanian business
organizations, and two science institutions signed LNG hybrid rail locomotive production agreement in
Vilnius Locomotive Repair Depot. First stage of prototype design and development will take about six
months. The locomotive, expected to be operational by 2020, will be used to maneuver in the territory
of Klaipėda Seaport. Gradually the trajectory will be expanded. The project has combined the
engineering and technological resources of the LNG cluster members and partners including AB
Lietuvos geležinkeliai (Lithuanian Railways), Klaipėda Stevedoring Company BEGA, AB Klaipėdos nafta,
Vilnius Gediminas Technical University and Klaipėda University. Development of innovative technology
will provide great benefits for the logistics industry and should give significant impact in reducing
pollution. It is estimated that LNG-powered locomotive fuel consumption will be up to 40% lower,
while carbon dioxide emissions will be reduced by 25%. Project partners are the first in the whole Baltic
Sea region to focus on the possibility of using cleaner railways.
RENFE, GAS NATURAL FENOSA AND ENAGÁS, in collaboration with Institut Cerdà, ARMF (Association
for the Reconstruction of Railway Material) and Bureau Veritas, are also preparing a pilot test for
locomotives powered by LNG in Europe; it is the first in the world for passenger rail transport. The aim
is to verify the feasibility of a solution with potential environmental and economic advantages for
traffic currently running on diesel power. This innovation project will assess the feasibility of adapting
locomotives to run with LNG engines and tanks, and the relevant technical, legal, economic and
environmental analysis for the Spanish and European rail network. The project is coordinated by
Institut Cerdà and also involves ARMF as rail integrator, and Bureau Veritas as the specialist inspection
and certification company. It is part of the Strategy for the promotion of Alternative Fuel Vehicles (AFV)
in Spain 2014-2020, in line with the purpose and scope of Directive 2014/94/EU on the deployment of
alternative fuels infrastructure in Europe. The agreement involves a pilot test being carried out with an
LNG-powered engine on a locomotive from the Feve diesel train depot along a 20 km section between
Trubia and Baiña stations, extending to Figaredo, in Asturias. For this purpose, the diesel engine on
one of the two paired locomotive units will be replaced with one powered by Natural gas, and tanks
for storing LNG will be fitted, alongside other necessary auxiliary equipment. The test will allow the
results obtained for both diesel and gas technology to be compared, given that a locomotive running
on each type of fuel will be used on the same train. This track test will be used to draw conclusions on
54
technical requirements for space, weight, refrigeration, and autonomy for running on NG, as well as
other considerations and comparative variables in emissions and operating economy. Spain has had
wide experience in LNG management, and its logistics system is being considered under the
frameworks of action developed by the Ministries of Industry and Development under European
directives, factors that may guarantee the security of supply for this potential market. RENFE, GAS
NATURAL FENOSA AND ENAGÁS are also assessing the possibility of presenting a second phase in this
project for the CEF European funding, intended to support the financing and subsidising of innovation
projects for the environmental improvement of transport systems along the core European rail
network corridors.
9.4 Social cost benefit
Another deliverable for this Project has shown that the aspect of social cost benefit is rather complex.
The LNG trucks have shown a certain tendency so far to have higher social cost, as they have lower
environmental cost, but higher purchase price, a social cost of reduced government revenue, and
higher fuel cost before taxes in some cases (This is anyway to be updated to the actual situation). In
general, the sale prices of HD LNG trucks in Europe still tend to be too high compared to the
expectations of the NGV sector, which is not in favor of the development of the market. By end of
Project, 25% of the fleet in the Project is made of EURO V trucks; the rest is EURO VI trucks.
55
10 Market barriers/improvers Many aspects, technological and economical have an impact, negative or positive on the development
of the use of LNG as automotive fuel. Below are shown and commented some among the main
aspects that are hampering or vice-versa stimulating the growth at European level of the LNG sector.
10.1 Power delivery
The maximum available power and torque delivery of LNG engines used to be one of the main issues
in the beginning. During Project more powerful LNG trucks entered, and are still entering the market
now, built by some of the OEM, with a power delivery up to 460 HP, hence the same as diesel versions,
also in the case of maximum torque, thus providing an increasingly effective solution to this.
10.2 Running range
More or less the same considerations apply as those of the power delivery. Last generation LNG trucks
tend to increasingly adopt larger or twin LNG on-board tanks, thus providing almost the same driving
range as the diesel version, in the order of 1,100 up to 1,600 km. This is a real breack-through.
10.3 Fuel price advantage
Diesel price for HD goods delivery vehicles is granted some excise reduction in some countries. This
reduces the price advantage versus LNG, which is mostly hinging on excise differential. This point is
discussed further elsewhere in this document.
10.4 Purchase price of LNG trucks
Even if the global fleet of LNG HD vehicles is growing constantly, there is not yet a scale effect suitable
to reducing the purchase price differential between diesel and LNG trucks. A price premium of 35-40%
is still to be expected for LNG trucks compared to their diesel counterparts.
10.5 Boil Off
Usually in the start-up period of a LNG refuelling station located in a virgin area, there is an initial low
sale rate, which may be the cause of some boil-off gas (BOG). This does require special care and
generates extra OPEX in order to prevent venting to atmosphere. As the local market increases, with
more LNG trucks joining in, this problem dissolves. Until a regime situation is reached, refilling of the
stationary LNG storage tank needs careful planning. LNG station manufacturers claim today that they
are anyway able to design plants adopting zero-venting solutions.
10.6 Traffic limitations
In general, no traffic limitations apply to LNG trucks, apart from the normal limitations in place for HD
vehicles, deriving from their size and weight. Some limitations are in place instead in the case of
tunnels. Traffic through tunnels of LNG vehicles (whether or not ADR) depends on national regulations.
In some cases, an inspection could be done to provide LNG vehicles that cross the tunnel regularly
with a special badge (Mont Blanc case). Running along The Eurotunnel connecting France and UK is
forbidden to all NGV (CNG and LNG); maybe this will be the case also in future. Boarding of ferries and
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ships is generally not forbidden instead for NGV, provided the ship has the necessary safety devices
and is designed taking gas vehicles in consideration, which is normally the case. Other Deliverables of
the Project cover these items.
10.7 Fuel quality
Fuel quality is an important item. It is in fact even more important for the engine applications of NG
than it is for all, or most of the other applications. What is seen as an important target in this respect, is
to develop a main LNG quality specification in order to meet the demands from the automotive
industry, so it is in a better position to design very clean and efficient vehicles. This is covered by other
deliverables of Project. Some recent milestones:
CEN/TC 408 – EN 16723 “Natural gas and bio-methane for use in transport and bio-methane
for injection in the natural gas network” - Part 2: Automotive fuels specification - Approved
June 2017
CEN/TC 234 – EN 16726 “Gas infrastructure – Quality of gas – Group H” - Published December
2015
Sector Fora Gas – formed a WG in order to evaluate EN16726 - Main purpose: to include more
parameters such as Wobbe Index
10.8 GHG emissions
The LNG sector is very active in developing technologies, measures and strategies to minimize and
eventually eliminate any boil-off gas. NGVA Europe has set his target of “Zero venting target policy”. In
the older LNG stations, a rate below 1% BOG was considered as something which could be accepted.
This is absolutely no longer the case, and BOG must go down to zero for all new stations. Stations
must not vent to atmosphere in normal conditions. ISO 16924 covers venting in several aspects:
Prescriptions for prevention of venting of natural gas
Venting of the LNG storage tank during filling
Prevention of venting from vapors generated by cool down, operation and cold standby
Hose design and dispenser installation
Pipework and venting
The present generation trucks in Europe have got engines with closed crank-cases and vapor recovery,
hence they are also not emitting NG from the engine in normal operations, besides unburned methane
at tail pipe, which is strichtly regulated by legislation (e.g. R 49). The LNG trucks and buses may need
on-board tanks to be vented before LNG refuelling, to relieve built-up pressure; the stations must
provide this collateral service, by recovering the vented gas in a suitable way. This aspect is peculiar for
LNG, and no other fuel needs addressing it; not even LPG, thanks to its far higher boiling temperatures.
10.9 LNG nozzles and receptacles for station supply
Couplings (nozzle) between the station tank and the thermo trailer (LNG tanker truck) supplying LNG
are expected and required to change to dry cryogenic couple (without drips). ISO 16924 states the
requirements of safe LNG delivery to the station from the LNG tanker, but does not fix the design of
the LNG connector from supply tanker truck to station. Connections and disconnections between
tanker trucks and stations tanks are far more limited in number compared to customer truck to station
connections and disconnections; for the sake of a zero vent strategy, also this aspect must be dealt
with anyway, and it is actually.
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10.10 Refuelling pressure and temperature
The need to cope with different LNG on-board systems service conditions (temperature, and relevant
saturation pressure), impose to station designer the inclusion of additional devices in the plant, with
the consequence of higher CAPEX and more complex operations. For this main reason, in the short
term the sector goal, especially on the side of vehicle OEM, should be to standardize on 8 bar on-
board tank pressure, and as consequence station pressure, as the harmonized pressure system. Over
the longer term, further lower pressures should be the target, in order to minimize potential venting
and maximize vehicle range. Lower saturation pressure means lower temperature, and higher density
of LNG. It also means longer holding time, as more time and heat creep-in would be taken before the
vent valve is operated by excessive internal pressure of the tank. “Saturation on the fly” is a technique
that is becoming increasingly available at LNG stations. This technique allows LNG stations to provide
LNG vehicles with different pressure depending on onboard installed LNG pump.
10.11 Separation distances
As LNG is inherently new as automotive fuel, the Authorities so far tend to be overcautious on plants
prescriptions, when editing norms, also to compensate for the short operational experience that might
be available to them. The safety distances have the aim of avoiding domino effect in case of accidents,
protecting from flying fragments in case of explosion, and from heat radiation in case of fire, and
allowing safe access to rescue people in case of emergency (protection distances). Hence long
separation distances are among the provisions more often adopted with redundant margins. The
proper and reasonably cautious approach to internal safety distances is to be recommended regarding
LNG installation, LNG dispenser/truck refuelling with LNG, shop and other vulnerable components of
the establishment, so to adopt the proper safety level, while not imposing too expensive prescriptions,
in particular in respect of the land surface requirements. Besides the effect on the cost of required
land, long safety distances also affect the actual feasibility of installation of LNG selling points inside
already exisiting traditional fuel stations. ISO 16924 and ISO 16923 set provisions relevant to
separation distances in Annex B.
10.12 Consumer information about LNG price
LNG is a new fuel; customers must be able to easily compare it to the other fuels, especially in terms of
price and cost. The fuel is generally metered by electronic mass meters, which directly and accurately
detect how many kilograms are flowing through the dispenser during the filling operation. So the price
should be displayed in €/kg in the station, also for metrological reasons. Who tried in the past to
change this, had to discover how difficult that may be. In order to facilitate price comparison, it would
also be beneficial to indicate, besides the official price in €/kg, the price of LNG in some other units
more familiar to the vehicle users/owners. Somebody proposes the €/DLE (Diesel per litre Equivalent).
Others are more in favor of energy units, such as €/kWh, or €/MJ, with reference to the Net Heating
Power. Some is inclined to consider €/100 km run, by doing the correct and necessary assumptions.
What is important is the same approach for all fuels. The EC is looking after this aspect with possible
enforcement of future provisions, as another consequence of Directive 2014/94/EU, DAFI. The EC
seems to prefer the option of €/100 km run.
10.13 Parking structures
In case of indoor parking, this is quite an important, even if maybe not much obvious, aspect affecting
LNG development. Indoor parking structures for LNG vehicles face the very unlikely but still possible
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challenge of very low temperature potential leak gas clouds, which are heavier than air for a while, and
vehicle vent valves, which might actuate in some (extreme) conditions of vehicles staying out of
operation for long time. The option at parking structure should be chosen between installing methane
detectors or prove that the ventilation system is good enough to vent out any possible methane
emissions. In theory, something worth considering is also the installation of a piping system in the
parking so that the fuel system of the vehicle can be connected and the gas is vented outside the
building structure when parking for a period longer than the holding time. Venting to atmosphere is to
be avoided (prohibited) anyway, and ways to store and/or consume the vented gas are to be
considered as a must. The vehicle operation manual should contain information about long-term
parking. There also is a need to define the equipment to recover gas from LNG tanks prior to long-
term parking and how to use it.
10.14 Training
Training for LNG trucks drivers and for station attendants is an important and complex item. It needs
harmonization and development and is under development of CEN TC 326. It has important
implications both for safety and for the environmental affect of the LNG sector operations. Local
institutions are looking after or planning such training courses, e.g. in Italy, Netherlands, Spain.
10.15 Mobile/re-locatable stations
This is a winning asset for new market in virgin areas. As a good example of this concept, in September
2017, the Breda based Company LIQAL, turnkey supplier of small-scale LNG systems, developed a skid-
mounted LNG refuelling station that offers station operators the flexibility of a re-locatable system at
lower investment requirements for both fuelling equipment and onsite project preparations. This
completely pre-fabricated and transportable LNG refuelling unit, the ‘MRU’, is SIL-2 classified and
complies with the latest international standards such as ISO 16924. It has an on-the-fly saturation, a
vapor return economizer, a MID certified LNG dispenser with patented heated and purged nozzle
docking bay and 24/7 iSCADA remote monitoring system. The fuelling performance can be compared
to a fixed LNG station configuration. Any tank type including mobile ISO storage can be connected to
it, which also holds space for LIQAL’s proven micro liquefaction technology that ensures unlimited
holding time of LNG in the storage tank and enables supply of both saturated- and cold LNG to
effectively fill all available LNG truck types. The MRU offers the opportunity to position the dispenser at
a distance from the skid for 2-sided refuelling of LNG and to add a L-CNG system. After turnkey supply
and commissioning of the MRU, LIQAL takes responsibility for technical operation and maintenance of
the system, if requested by client.
Figure 10-1. Drawing simulating the re-locatable LNG station, connected to an ISO LNG portable container [source: LIQUAL]
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10.16 Flexibility of supply systems - UTS
The new concept of the Universal Transfer System (UTS) is now a market-ready system that widens the
range of possibilities in the LNG small scale business, by means of floating LNG ship to shore system.
GAS NATURAL FENOSA and CONNECT LNG have made the successful sea launch of the first full-scale
UTS on 7th
October 2017. The companies carried out a complete operation including transfer of LNG
from SKANGAS’ LNG carrier Coral Energy to the onshore LNG terminal at Herøya, in Norway. The UTS
is a game changing floating solution for LNG transfer, consisting in a platform which can connect to
any LNG carrier. LNG is then transferred from the platform to the onshore terminal through floating
flexible pipes. The design and fabrication of the UTS has involved the highest safety standards, and the
complete system has undergone an extensive classification process by DNV GL. The patented UTS will
replace the need for expensive and environmental intensive harbor and jetty structures. This solution
allows for rapid expansion of the value chain and transfer of LNG at locations where it was previously
not possible due to environmental and economic constraints. It is a plug&play solution which requires
no modifications to the LNG carrier. [Source: CONNECT LNG – NGV Journal]
Figure 10-2. UTS floating LNG ship to shore system (Source: NGV Journal)
10.17 Logistic hubs
Logistic hubs offer opportunities and synergies to the automotive LNG market. Different transport
systems are present and simultaneously operate inside logistic hubs, e.g. trucks, vans and trains, which
can take profit of innovative fuels, LNG, CNG, bio-methane. The large vehicle fleets hinging on them
create good business cases for the multi-fuel refuelling stations to be built inside their premises, or for
LNG selling plants to be added to the diesel existing stations. The presence of train offers a promising
alternative option for quick and reliable mass fuel delivery, also applicable to LNG, already at present,
and in prospect. In Italy, on Friday 21st April 2017, LIQUIMET held the inauguration of its LNG/L-CNG
Station in Padova Interporto (Padua’s logistic hub), and the concurrent delivery of the first 20 trucks
IVECO NP/400 LNG to AUTAMAROCCHI logistic company. This was the first step of the GAINN4DEP
national project for the build-up of the LNG infrastructure in the more strategic Italian spots, (Core
ports and logistic hubs), as part of the national strategy to fulfill DAFI. This is the first LNG station in
Italy, and probably also in Europe, to be supplied with LNG by train. In fact, LNG is not taken there by
tanker truck from Marseille or Barcelona, as has been the case so far for all the other LNG and L-CNG
stations in Italy, but is delivered through railroad train, coming from Rotterdam LNG terminal, by
means of ISO containers, loaded on train cars. This station has some more innovative features as well.
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11 Trend of core business LNG market
11.1 General
The LNG core business infrastructure has developed significantly over the last years, and the efforts of
the European Commission to facilitate the development of a genuinely integrated single market are
bearing fruit. The LNG market is increasingly active, European and worldwide. Here some facts or
predictions are enlisted, to show how differentiated and dynamic this sector is becoming.
The LNG shortage following the events of 2013-2014 very quickly turned into an abundant LNG supply
in the following years. This was partly due to a rapid ramp up of American production and the
emergence of the US as a major exporter. There is a huge industry in Australia as well, but the
Australian investment consisted of long lead times and projects which were reasonably predictable.
The US had a very rapid ramp-up in shale production and quickly turned from an LNG importer to an
LNG exporter.
The imports of LNG to Japan, which is the largest LNG importer in the world economy, were stabilized
and then they began to decline, because nuclear power is coming back to the Japanese energy system,
several new coal plants were built, solar power is doing very well in Japan, and the country has always
been very successful in energy efficiency and in curbing energy demand.
So, overall, there has been a ramp-up of supply and declining demand at the largest importer
coinciding, and all this created an abundant LNG supply in global markets. Among the largest gas
companies, GAZPROM reacted to this and changed its marketing strategy by renegotiating long-term
contracts, adopting more flexible, market-oriented pricing, being prepared to compete to maintain
market share. Despite the abundance of LNG in international markets, Russian gas exports to Europe
are at an all-time high – they’ve never exported more gas to Europe than in 2016. This was achieved by
a sharp competition between LNG and Russian gas. If combining the better infrastructure, better
regulation and better competitive conditions in global markets, the effects are quite significantly
positive for Central and Eastern Europe, where in general renewables are lagging behind the leading
European countries. Romania, for one, has a decent wind and solar fleet; Poland has some wind in the
Baltic Sea region, but overall the growth of wind and solar has been less rapid in CEE than in the West.
In general the political environment is more favorable to nuclear power in Eastern Europe than in most
European countries. In Eastern Europe there are several important countries where the government has
declared publicly nuclear power as strategically important. This means that NG will have to find the
niches, and there is a fair amount of ageing coal capacity in Eastern Europe. It is possible to foresee
some coal plant construction here and there but not to the extent that the old coal plants will be
decommissioned. So if combining the future decommissioning of coal, the slow growth of wind and
solar, and even with the pro nuclear politics, there are some interesting opportunities for NG.
Considering the future of NG in that region and the various infrastructure projects, LNG terminals, etc.,
experts try to figure out how much of the actual LNG will be consumed, or see if it is just part of
creating diversification of sources. The point of the drive towards a single integrated market in Europe
is that in a genuine single market it doesn’t really matter where the LNG is coming in. For example,
Germany doesn’t have an LNG terminal at all and many German companies have investigated the
viability of an LNG terminal in northern Germany, near Hamburg, and the result was always that it is
not commercially viable. However, Germany is very well interconnected with the Netherlands, with
France and the North Sea system via which Norway can supply NG either to Germany or to the UK.
That region has four gigantic LNG terminals – Dunkerque, Zeebrugge, Rotterdam and South Hook – all
61
more than half empty. It has a powerful impact upon the German NG market, even without a single
LNG terminal in Germany.
This is not the case in Central & Eastern Europe which doesn’t have that intensive infrastructure
integration that Germany has with Northwestern Europe and the distances in CEE are also bigger. So
projects like the Polish LNG terminal, the Lithuanian LNG terminal, a possible terminal in Croatia, make
a difference in terms of integrating the region into LNG markets.
The NG pipeline system in the Czech Republic, which plays a very important role as a hub, is fully
reverse-flow capable and can deliver gas from the east to the west and from the west to the east. This
is also a very important development. It was not the case just a couple of years ago. The International
Energy Agency currently see a decline of LNG investment as the big projects in Australia are
completed. The investment spending is still sizeable, but most of the spending is committed to
projects that were launched before 2014 – that was the year when global prices collapsed.
Countries like Poland and Lithuania now have their LNG terminals. Other countries like Estonia,
Bulgaria, Hungary, Slovakia, Ukraine don’t; so for them energy diversification is more of a problem. But
EU member states in the CEE region have been urged by EC to join up their gas markets via gas
interconnectors that can provide reverse-flow capacity. The completion of the North-South Corridor
project would mean the complete networking of the gas networks of the European member states
along a north-south axis through central Europe. This would result in all of these countries being able
to access the gas delivered via LNG terminals in both the north and south of the region. So 12
countries in the region have pledged to come together to improve infrastructure and trade and to
develop better connections in transportation, digital communication and energy, including NG along a
north-south axis. One target is a connecting the LNG terminal in Poland with a pending project in
Croatia which plans to finish the construction of an LNG terminal off of the island of Krk in 2019. A
project that has been in the works for nearly a decade, in early 2017 received a € 102 million grant
towards construction of the terminal; it has got the support of the Slovak transmission system operator
EUSTREAM, and preliminary underwater research and drilling activities began at the site at end August
2017.
A long period of high prices for oil and gas at the first half of the decade made the industry a bit
complacent, so several large LNG projects experienced cost inflation and project delays. Now industry
has to shape up and get better.
In the US there is an increasing interest in brownfield projects, e.g. adding one more liquefaction train
to a project, taking advantage of the existing pipeline structure and independent shale upstream.
There also is increasing interest in 1 – 2 million tons/year-sized floating liquefaction units. Some of the
most interesting projects that succeeded in attracting investment finance in the current market
environment, like Cameroon or one of the projects in Mozambique, used this smaller sized floating
LNG technology. Instead of taking a decade to build a gigantic land-based facility, they construct a
floating unit of 1-2 million ton/y size in three years, and if market conditions allow they can add more.
Some projects show better management than others. Papua New Guinea LNG for example is located in
an extremely challenging remote region nevertheless it came online on-budget and ahead of schedule.
Probably, the project management capability is going to be one of the key competitive advantages for
the industry. [Source: László Varró IEA Chief Economist- September 29, 2017 – speaker in the session:
“LNG in Transition” at the Budapest LNG Summit on 16-17 October]
The Italian company ENI believes that the price of Mozambique LNG would fit well into European gas
markets when ENI ships its first cargo in 2020. Europe has been using only 25% of its LNG import and
regasification capacity because it has been relying more on lower-priced pipeline NG and coal.
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Mozambique LNG would be priced correctly to fit European markets because the gas exploration and
production costs there are very low. Probably the US LNG prices would fit better into the Asian
markets, leaving Europe open to supply from Mozambique. It takes only 3-4 weeks to drill a well in
Mozambique, allowing production to be increased quickly and economically. ENI is expecting to get its
first cargo of LNG from Mozambique from the Rovuma Basin by a 2.5 million mt/year floating
liquefaction train, which will be followed by two onshore trains later. The ENI’s gas resources in
Mozambique are enough to satisfy the whole Italian demand for 30 years. [Source: Claudio Descalzi,
CEO of ENI - keynote address at IHS Cambridge Energy Research Associates (CERA) week – October
2017]
11.2 Top north and top south Europe’s ends developments
The EC has approved the Finland strategy for NG import diversification through the construction of
small scale LNG terminals, as an alternative option to the pipeline NG import from Russia. On late 2017
Margrethe Vestager, European Commissioner, announced the support to the construction of a LNG
small scale reception terminal in the port of Hamina, on the south coast of Finland, and the grant offer
of € 31.5 million. The EC has allocated a similar subsidisation sum in 2015 for another LNG terminal
planned on the west coast of the country. This strategy is in line with all efforts so far in that region to
remedy to the energy isolation of Baltic countries and to improve energy security there. In the
intentions of the EC, these small scale terminals will provide a new source of clean fuels also for
maritime applications.
Finland's Wartsila has been awarded on October 4 a turnkey contract to supply the LNG receiving
terminal to be built in Hamina. The contract was awarded by HAMINA LNG, a joint venture of
municipally-owned HAMINA ENERGIA and Estonian infrastructure group ALEXELA, which decided in
June to build the € 95 mn project. Completion of works is expected in 2018. This is also a valid example
for the other Baltic countries: Lettonia, Estonia and Lituania, which like Finland only depend on Russia
for their supply of NG. This solution could also suit to the case of south end of Europe, i.e. some
regions in the Mediterranean Sea, such as Sardegna and Corsica, which are at present the only regions
in the Tirreno Sea that don’t have a NG network, and to the case of the costs of Balkan countries,
which have neither NG pipelines nor LNG re-gasification plants.
In this respect, in 2017 ENI has submitted to the Italian Ministry of Economic Development the
feasibility study for the construction of a LNG Terminal, in the port of Gela, south of Sicily. The initiative
follows the Protocol signed in November 2014, under which ENI has committed to evaluate the
possibility of building an infrastructure for the supply/storage of LNG or CNG, with the aim of
bunkering both maritime transport and heavy transport on-land. For its industrial conversion project,
ENI has decided to focus on the LNG solution. This would involve the construction of a small scale
liquefaction plant of NG, imported from North Africa by pipeline, and a storage and distribution
infrastructure for the shipping and heavy-duty land transport needs. The feasibility study has
examined, inter alia, the potential LNG market in terms of future developments in the maritime and
on-land transport, the synergies with the existing port and the logistical and distribution infrastructure,
the opportunities in other Mediterranean basins which do not have yet NG infrastructures. [Source:
Conferenza GNL]
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11.3 Europe – Russia - China international NGV corridor 2030
In late September 2017 Vitaly Markelov, Deputy Chairman of the GAZPROM Management Committee,
Huang Weihe, Vice President of PETROCHINA, and Daniyar Berlibayev, Executive Vice President for
Transportation, Processing and Marketing of KAZMUNAYGAS, signed a Memorandum of
Understanding at the 7th St. Petersburg International Gas Forum. The document reflects the interest of
the parties in long-term strategic cooperation in the NGV market, including via developing the NG
refuelling infrastructure at the Europe – China international transport corridor. The MOU also provides
for an assessment of the potential number of NG freight trucks and the amount of NG that could be
used for refuelling vehicles at the Russian, Kazakh and Chinese sections of the route in the period up
to 2030. The results of the assessment will serve as the basis for the drawing up of the tripartite
Roadmap for the development of a natural gas filling network along the Europe – China international
transport route.
11.4 Italian infrastructure
Despite being among the more active European countries in the automotive LNG market, Italy lacks a
national supply source on the large scale side, let alone the small scale one. At present there are three
LNG terminals in Italy. The oldest one is in La Spezia, and it started back in 1973. Another one is close
to Rovigo, on the Adriatic Sea, and the third one is in Livorno, on the Tirrenian Sea; both started in the
present decade. The terminal in La Spezia is the only one on-shore, but it is old now, and the
characteristics of its location prevent access to LNG tanker trucks there. The other two terminals are off
shore, so no way to supply LNG directly to tanker trucks also in their case. Therefore Italy needs
building up from scratch the intermediate infrastructure for the supply of LNG to the tanker trucks. At
present the supply is through trucks coming from the terminals of Barcelona or Marseille, and via train
from the terminal of Rotterdam; this last a very recent step. A national supply source would reduce
travel needs and costs. After successfully passing the feasibility study phase, the project of new small
scale LNG terminal which DECAL and SAN MARCO PETROLI are planning to build in Porto Marghera, is
starting the authorization procedure. The new infrastructure will have total storage of 32,000 m3, made
of one atmospheric full containment tank of 30,000 m3 and two horizontal pressurized “bullet”, full
containment tanks of 1,000 m3 each. This plant is designed for LNG tanker ships carrying from 7,500 to
30,000 m3 load. The plant is meant for supplying in its turn LNG in liquid state to the automotive
market, as well as for the supply of residential applications not connected to the national NG pipeline
system, and as bunker for marine applications. Besides the mooring pier for ships unloading LNG, the
plant will also include an additional pier to load LNG on small tanker ships of about 1,000 m3 load,
which will be bunkering dual-fuel ships sailing in the port of Venezia. Five tanker truck loading bays
will be also part of the plant. In a second project step a loading bay will be added for railroad trains.
In the port of Santa Giusta – Oristano in Sardegna HIGAS has started the construction of a coastal LNG
small scale storage in the Mediterranean Sea, after the release in January 2017 of Authority permission
for this work from the Ministries of Industry and Transport, and after the land purchase. The majority
share of HIGAS has been acquired by the Norwegian company STOLT NIELSEN, specialized in fuels sea
shipping. The plant expected CAPEX is 30 million euro. Total capacity of the coastal LNG storage is
9,000 m3, divided among six 1,800 m
3 tanks. The Norwegian company aims at diffusion of LNG as
marine fuel in the Mediterranean Sea, besides fulfilling the need for it in Sardegna, where it will be
applied as automotive fuel, and as fuel for the local industry and for residential applications. The ship
manufacturer KEPPEL SHIPYARD is already building in Singapore for STOLT two 7,500 m3 LNG carriers
which will serve coastal LNG small scale terminals and will offer ship-to-ship LNG bunkering.
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11.5 Recent and future moves of the market, Europe and Global
Lithuania‘s LITGAS, the gas trade arm of state energy holding LIETUVOS ENERGIJA (Lithuanian Energy),
begun LNG sales to Poland's electricity and gas supply company DUON in late 2017. The gas is hauled
there by trucks from Lithuanian seaport Klaipeda‘s new ground LNG distribution station.
Figure 11-1. Independence, the Hoegh terminal in Klaipeda (Source: Hoegh)
The Norwegian firm CONNECT LNG and GAS NATURAL FENOSA have successfully used pioneering,
'plug and play' technology, Universal Transfer System (UTS), to deliver LNG ashore in an operation
carried out in Norway on October 7. During the successful sea launch of the first full-scale and market-
ready UTS, CONNECT LNG and GAS NATURAL FENOSA carried out a complete operation including
transfer of LNG from Skangas’ LNG carrier Coral Energy to the onshore LNG terminal at Heroya.
The Port of Rotterdam plans in 2017 to build a new multifuel bunker station for the refuelling of LNG
and other cleaner fuels. Krabbegors/Duivelseiland at Dordrecht Inland Seaport has been designated as
the location for the station. Port of Rotterdam and PITPOINT.LNG signed a letter of intent to jointly
further study the feasibility of the station. This will encourage the use of LNG as an alternative to fuel
oil in shipping. Dordrecht Inland Seaport is the most inland seaport in the Netherlands. It forms the
meeting point of the shipping lanes for the cities of Amsterdam – Rotterdam – Antwerp, and the main
shipping route into Germany. All fuels (including LNG/CNG and hydrogen) supplied by the multifuel
bunker station should produce fewer harmful emissions than traditional fuels. This includes fuel for
ships, trucks and/or commercial vehicles with the aim of working together to achieve cleaner air and a
better living environment. This station forms part of PITPOINT.LNG’s strategy of developing a
European LNG refueling infrastructure.
Greek gas supply monopoly DEPA has signed a co-operation agreement with Greek utility GASTRADE,
the company developing an LNG terminal in Alexandroupolis in northern Greece. The two CEOs –
DEPA's Theodoros Kitsakos and Gastrade's Konstantinos Spyropoulos – agreed that DEPA would
contribute to Gastrade's share capital and share in the further commercial development. [Source: Depa
- October 16 2017]
Norway-based ADD ENERGY is planning to use small floating liquefied natural gas (FLNG) vessels to
unlock standard gas fields. In October 2017 the company OFFSHORE AUSTRALIA declared interest for
the initial pilot project. It has partnered with Australia’s TRANSBORDERS ENERGY to create a rapid
deployment business model for the FLNG industry that ADD ENERGY promised will free up small-scale
stranded resources around the world.
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REGANOSA has launched its LNG hub project in the Northwest of the Iberian Peninsula. The energy
company aims at providing LNG as marine fuel to a wide range of clients from its first regasification
terminal, located in the port of Ferrol (Galicia, Spain). Every year, there are 40,000 ships sailing close to
there on route from Europe to America, Africa and Asia, and vice versa. REGANOSA is supporting the
transition to NG as the fuel of choice among many sectors and, for that reason, is trying to create a
hub in the northwest corner of Spain which serves the whole of Europe. In the plan of the Company,
the LNG HUB in Galicia will serve as a major lever for guaranteeing sustainability within some of the
most important sectors, such as fishing and the port network.
Dhaka is preparing Bangladesh industry for the start of imports of LNG from April 2018 [Source: state-
run Petrobangla chairman Abul Mansur Md Faizullah].
The PETRONET’s Kochi LNG terminal capacity utilisation is expected to rise to 40% by 2018. The
terminal has had in 2017 a low capacity utilisation of just 15-16% owing to a lack of pipeline
infrastructure.
A joint venture comprising Malaysia's PETRONAS LNG, Hongkong Shanghai MANJALA POWER and a
Bangladeshi company GLOBAL LNG is preparing to build a 3.75 million metric tons/year floating
storage unit and a fixed jetty-based regasification unit at Kutubdia island in the Bay of Bengal near
Cox's Bazar district in southeastern Bangladesh. In October 17 the Shanghai-based HONGHUA GROUP
has awarded a $12 mn front-end engineering design (Feed) contract to UK-based contractor WOOD
GROUP, for an LNG platform development in the West Delta area of the US Gulf that Houston-based
developer ARGO LNG, headed by ex HOEGH LNG CEO Gunnar Knutsen, aims to complete around
2020. Japan announced a $10 billion public-private initiative that will help to boost LNG infrastructure
in Asia. The announcement was made by Hiroshige Seko, minister of economy, trade and industry, at
the LNG Producer-Consumer Conference October 18. The Yemen LNG has been now offline for 30
months. October 2017 marked two and a half years since Yemen LNG declared force majeure in mid-
April 2015. YLNG stopped all LNG producing and exporting operations 14 April 2015, evacuated most
staff, and said arrangements were in place to protect the Balhaf liquefaction site. [Source: NGW -
October 17]
The Queensland CURTIS LNG facility (QCLNG) on the east coast of Australia hasn’t sold a spot cargo of
LNG since March 2017; as all volumes in excess of the contracted levels at QCLNG have been sold in
Australia to local customers [Source: Shell Australia’s Chairwoman Zoe Zujnovich].
The MEXICO PACIFIC Ltd LLC (MPL), owner and developer of a LNG project on the Gulf of California in
Mexico, received an investment from AECOM Capital’s Infrastructure fund to advance development of
its liquefaction complex. Based at Puerto Libertad in the state of Sonora, MPL is a cost-advantaged and
scalable liquefaction project that has a deep-water port and is interconnected with the U.S. shale gas
grid by multiple natural gas pipelines, which are already in service bringing NG to the site. This is
considered an important milestone that advances the ability of that operator to offer the lowest all-in
cost LNG to Mexican, South American, Central American and Pacific basin markets from a next-
generation west coast LNG facility. [Source: Mexico Pacific Limited]
In 2017 ENI reached a final decision on development (FID) of the Coral South gas field in Mozambique.
The project will be developed by a floating LNG (FLNG) production unit. The production capacity is (by
the operator) estimated to be 3.4 million tons per annum MTPA, equivalent to 4.7 bcm/yr. RYSTAD
ENERGY believes first LNG shipment from Mozambique to be in either in 2023 or 2024, and Tanzania
to follow 4-5 years later. The combined gas and LNG production in East Africa is expected to exceed
120 bcm/yr by 2040, whereof LNG will be the dominant product. [Source: Henrik Poulsen Senior Vice
President - Government Relations at RYSTAD ENERGY]
66
12 Operators of the LNG sector The group of operators of the international and European LNG market is inherently small; but its
commitment to this market is in constant growth. The following list of companies is focused on on-
road LNG infrastructure (i.e. fueling stations for trucks) and tries to be as comprehensive as possible,
anyway it is not necessarily exhaustive of the whole LNG sector. The manufacturers and operators of
which the Project partners are aware of were included in it.
Operator Address Product
AGT AMERICAN GAS &
TECHNOLOGY 1695 S. Seventh street - San Jose, CA 95112 T: +1 (408) 292 6487 f:
+1 (408) 292 7143 LNG infrastructure
construction
AIR LIQUIDE www.airliquideadvancedtechnologies.com LNG infrastructure
construction
AXEGAZ 120 Rue Jean Jaurès 92300 Levallois-Perret France Edouard de
Montmarin T: +33 601 641 538 [email protected]
http://www.axegaz.com
LNG infrastructure
construction/operation
BALLAST NEDAM IPM
B.V. Nijverheidstraat 12 4143 HM Leerdam The Netherlands Joost
Jansen www.ballast-nedam.com email: joost.jansen@ballast-
nedam.comT+31 (0)345 639250 M+31 (0)6229 12499
LNG infrastructure
construction/operation
BOHLEN & DOYEN
GmbH SAG Group Hauptstraße 248 26639 Wiesmoor Marcus Reher T+49 (0)4944
301437 F+49 (0)4944 301423 M +49 (0)160 531 32 93 E
[email protected] I www.bohlen-doyen.com
LNG infrastructure
construction/operation
BRN BERNARDINI operative headquartes Via G. Galilei 35, Faenza, Italy Legal
heaquarters and Call Center: Via Finlandia 70, Modena, Aldo
Bernardini T+39 335 – 7194094 / +39 0546 - 62 67 13 Fax: +39
0546 - 62 67 41 [email protected] http://
www.bernardininet.com
LNG infrastructure
construction/operation
CHART FEROX a.s. Ustrecka 30 CZ-405 30 Decin - Czech Republic Mr. Vaclav Chrz
[email protected] Josef Semeràd Josef.semerad@chart-
ind.com T: +420 412 507 349 f: +420 412 507 297 FEROX GmbH -
Brosshauser Strasse, 20 D-42697 Solingen Germany T: +49 (0) 212
700 570 f: +49 (0) 212 700 578 [email protected]
http://www.chart-ferox.com
LNG components
CRYOMEC
Binningerstrasse, 85 - CH – 4123 Allschwil 1 - Switzerland T: +41
61 487 3300 f: +41 61 487 3399 [email protected]
www.cryomec.com
LNG components
CRYONORM SYSTEMS
BV Koperweg 3 2401 LH Alphen aan den Rijn The Netherlands Office:
+31 172 41.80.80 Fax: +31 172 43.88.19 LNG infrastructure and
cryogenic vaporisers
CRYOSTAR SAS
2 rue de l’Industrie - ZI BP 48 - 68220 Hesingue (F) T: +33 389
702727 f: +33 389 702777 Josef pozivil T +33 (0) 3 89 70 29 11 F
+33 (0) 3 89 70 29 00 [email protected] www.cryostar.com
LNG components
CRYOVAC GMBH & CO
KG
Heuserweg 14 D-53842 Troisdorf Phone: +49 (0) 2241 84673-0 Fax:
+49 (0) 2241 84 673-29 [email protected]
Cryogenic tanks
67
DRIVE SYSTEMS NV Leeuwerikweg 8 B-3300 Tienen Belgium Philippe Desrumaux T:
+32 494 89 69 96 [email protected]
http://www.drivesystems.be
LNG infrastructure
construction/operation
ENERGOCRYO Hauptstrasse, 49 CH 4422 Arisdorf T: +41 61 811 2386 f: +41 61
811 4358 [email protected] Engineering/consulting
ENGIE LNG Solutions BV
GDF Suez LNG Solutions
BV
Grote Voort 291 8041 BL Zwolle The Netherlands Jan Joris Van Dÿk LNG infrastructure
construction/operation
ENN Business Park “de Bedrijvige Bij” Lagendijk 1-3 Suit C148 | 1541 KA
Koog aan de Zaan |the Netherlands Joost Jansen Business
Development Manager T +31 (0) 207470178 O +31 (0)207470178
M +31 (0)622912499 E-mail [email protected]
www.enneu.com www.enn.cn
LNG infrastructure
construction
ENOS LNG d.o.o. C. Zelezarjev 8 SI-4270 Jesenice Slovenia Andrej Stušek T: +
386 4 581 0240 [email protected] http://www.enoslng.si LNG infrastructure ss
liquefaction
construction/operation
FLUXYS Belgium Av. Les Arts, 31 1040 Brussels Belgium Vincent Malisoux T: +32 2
282 72 55 [email protected] http://www.fluxys.com
LNG supplier; LNG terminal
operator
GABADI GABADI, S.L. Polígono Industrial Río do Pozo Avd. Xesús Fernández
Pita, 53 – 15578 Narón – A Coruña Telf. [+34] 981 39 73 01 Fax:
[+34] 981 39 72 95 E-mail: [email protected]
Membrane LNG tank
GALILEO Av. General Paz 265 Sàenz Pena Buenos Aires B1674A Argentina
Osvaldo Del Campo T +54 11 4712 8002 F +54 11 4712 6003
[email protected] www.galileoar.com
LNG
components/infrastructure/ss
liquefaction
GAS AND HEAT SPA Livorno Cryogenic tanks
GAS FIN 62, Rue des Romains LU-8061, Strassen Luxembourg
http://www.gas-fin.com
Liquefied Natural Gas (LNG)
infrastructure operation
GNL ITALIA S.p.A.
Sede legale: Piazza S. Barbara, 7 - 20097 San Donato Milanese (MI)
- Tel. 02 520.1 - Sede operativa: Località Panigaglia - 19020
Fezzano (SP) Tel. 0187 790046 - Giuseppe Vareschi 0187 794325
[email protected] www.snamretegas.it
LNG supplier; LNG terminal
operator
GOLDENGAS Viale Giordano Bruno, 20/4 - 60019 Senigallia (AN) Italy tel. 071
791091, 800 700300 fax. 071 7925130 www.goldengas.it info
@goldengas.it
LNG trade
GTT Gaztransport & Technigaz 1, route de Versailles 78470 Saint-Rémy-
lès-Chevreuse France T: +33 (0)1 30 234 789 [email protected]
LNG tanks
HAM CRIOGENICA Polígono Industrial Sant Ermegol P.11 08630 Abrera Spain Jaume
Suriol T: +34 93 7704 760 [email protected] http://www.ham.es LNG infrastructure
construction/LNG
transport/supply
JC CARTER LLC World Headquarters 26451 Curtiss Wright Pkwy, Suite 106
Cleveland, Ohio 44143 1-440-569-1818
LNG connector/receptacle
INDOX - ROS ROCA
INDOX CRYOENERGY Industrial la Serra s/n 25320 Anglesola (Lleida) Miquel Fontova
Cemeli Tel: 639392193 Email: [email protected] LNG infrastructure
construction/operation
68
LINDE BoC Priestley Centre Surrey Research Park GU2 7XY Surrey UK Linde AG
Seitnerstraße 70 82049 Pullach Germany Mark Lowe (UK) - Olof
Kallgren (Germany) http://www.linde.com
LNG
components/liquefaction
LIQAL Heilaar Noordweg 2 4814 RR Breda The Netherlands Phone +31
(0)85 4861 000 Mail address: P.O. box 9407 4801 LK Breda The
Netherlands Email [email protected]
LNG infrastructure
construction
LIQUIGAS via Giovanni Antonio Amadeo, 59, 20134 Milano Andrea Arzà
https://www.liquigas.it/imprese/gnl-liquigas/ LNG infrastructure
construction/operation
LIQUIMET S.p.A viale Montegrappa 18/a Treviso – Italia Antonio Nicotra Presidente
[email protected] www.liquimet.it LNG infrastructure operation
MARITIME LNG
PLATFORM e.V. Esplanade 23 20354 Hamburg Germany Georg Ehrmann LNG trade
MOLGAS ENERGÍA S.A.U Avenida Astronomía, 41 28830 San Fernando de Henares Madrid
Tel: +34 916601662 [email protected] LNG trade
NATIONAL GRID-
GRAIN LNG Grain LNG Terminal Isle of Grain Rochester Kent ME3 0AB Paul Ocholla T:
+44 1634 273173 [email protected]
https://www.nationalgrid.com/uk/grainlng
LNG infrastructure/LNG
terminal operator
NEXGEN FUELING 3505 County Road 42 West - Burnsville, MN 55306-3803 T: +1 800
838 0856 f: 952 882 5172 www.nexgenfueling.com LNG trade
PARKER HANNIFIN Racor Filter Division Europe Shawcross Business Park Dewsbury
WF12 7RD United Kingdom Steven Wilson T: +44 (0)1924 487000
[email protected] http://www.parker.com
LNG connector/receptacle
PIT POINT Gelderlandhaven 4 3433 PG Nieuwegein The Netherlands Kim
Bentum T: +31 30 410 08 00 [email protected]
http://www.pitpoint.nl/#1
LNG infrastructure
construction/operation
POLARGAS S.r.l. via Avv. Giovanni Agnelli, 10 - 12033 Moretta (CN) t: 0172 915811
f: 0172 915822 ing. Diego Pegorari cel. 334 60 5066 – e-mail:
LNG transport by tanker
truck
PRF PRCF Gás, Tecnologia e Construção, S.A. E.N. 356/1- Km 5,8
Alcogulhe 2400-821 Azoia Leiria Portugal Joao Pedro Cordeiro
Ferreira T: +351 914933358 [email protected] http://www.prf.pt
LNG infrastructure
construction
PRIMA LNG N.V. Uitbreidingstraat 2-8, 2600 Berchem, Antwerpen, Belgium Peter
Frühwirth [email protected] http://www.primalng.com LNG infrastructure operation
RAG ROHÖL-
AUFSUCHUNGS
AKTIENGESELLSCHAFT
SCHWARZENBERGPLATZ 16, 1015 Vienna Austria Georg
Dorfleutner T +43 (0)50 724, http://www.rag-austria.at
LNG tanks
REGO GMBH Industriestrasse 9 D - 35075 Gladenbach Germany Freddy Deyk T:
+49 6462 91470 [email protected] http://www.rego-europe.de
MACRO TECH connector
LNG infrastructure/LNG
connector/receptacle
ROLANDE LNG Postbus 61 4286 ZH Almkerk The Netherlands Peter Hendrickx T:
+31 183 583 446 [email protected]
http://www.rolandelng.nl/en/home.htm
LNG infrastructure
construction/operation
ROSETTI MARINO SpA via Trieste, 230 - 48122 Ravenna Italy Marino Rosetti T 0544
878 111 F 0544 878 188 [email protected] www.rosetti.it LNG infrastructure operation
69
ROS ROCA Indox Cryo
Energy S.L. Pol. Ind. La Serra s/n – 25320 Angesola (Lleida) Spain Ismael
Callejon Agramunt T +34 973 308 530 F +34 973 308 528 M +34
661 888 041 [email protected] www.indox.com
LNG infrastructure
construction
SAPIO S.r.l. v. Silvio Pellico, 48 – 20052 Monza (MI) Italy Sergio De Sanctis t.:
+39 039 83981 f.: +39 039 836068 e-mail: [email protected]
www.grupposapio.it
Technical gas supplier
SIAD SIAD S.p.A. Via S. Bernardino, 92 24126 Bergamo Tel. 035.328.111
Fax. 035.328.318 https://www.siad.com/it
Productiob plants of
technicalgases
STIRLING CRYOGENICS
& REFRIGERATION BV P:O: Box 218, Building AQ – 5600 MD, Eindhoven (NL) T: +31 40
2766522 f: +31 40 2766144 LNG components
TECNOCRYO via Ugo Foscolo, 820060 Basiano (MI) Italy T: +39 02 95764120 f:
+39 02 95764120 www.tecnocryo.com [email protected]
Marcello Riva t 02.95764120 f. 02.95764102 m. 335.6020781
LNG components
TERMINALE GNL
ADRIATICO Srl p.za della Repubblica, 14/16 – 20124 Milano Italy t. 02 636 981 f 02
636 98222 via Canalini, 2 – 45100 Rovigo t 0425 421035 f 0425
460095
LNG storage & supply
UNIPER Technologies GmbH Alexander-von-Humboldt-Strasse 1, 45896
Gelsenkirken Cliff Muller-Trimbusch Project Manager Cooperation
& Business Development T +49 2 09-6 01 32 06 M +49 1 72-2 64
74 69 [email protected] www.uniper.energy
LNG infrastructure operation
VANZETTI
ENGINEERING Srl Via Avv. Giovanni Agnelli, 10 - 12033 Moretta (CN) Italy t. 0172 91
5811 f. 0172 91 5822 - [email protected] LNG
infrastructure/components
construction
VRV S.p.A Via Burago, 24 20060 Ornago (MI) Italy Massimiliano Spada T: +39
039 6025 1 f: +39 039 6025 499 www.vrv.it LNG tanks
VCT Vogel GmbH
(CHART)
Table 12-1. Manufacturers and Operators involved the European LNG truck refueling infrastructure market
70
13 The Trans-Europe Blue Corridor rally
On 18th
September 2017 the “Blue Corridor-2017: Iberia – Baltia Rally” kicked off from Carregado
(Lisbon). The rally, which is promoted and organized by GAZPROM Group and UNIPER, gathers every
year representatives of energy and logistics companies, vehicle manufacturers and operators in the
NGV market, to demonstrate the benefits of NG as automotive fuel. The participants drove across
Europe to St. Petersburg in 19 days, running more than 5,300 km, and passing through 12 countries:
Portugal, Spain, France, Italy, Switzerland, Lichtenstein, Germany, Poland, Lithuania, Latvia, Estonia, and
Russia. The Blue Corridor Rally 2017 demonstrates the progress made in the development of the NG
infrastructure in Europe, confirming the viability of this fuel in long haulage, and rose awareness of the
benefits of LNG use in the transport sector. Along the route, some events were held in Lisbon, Milan,
Ulm, Berlin, and Tallinn. Government officials, OEM, representatives of the gas industry and transport
companies discussed the technological and legal aspects, and environmental, economic and social
benefits of NGV. The caravan did stop at IVECO’s Ulm plant in Germany to refuel at the station which
was the first to open in Germany. On September 25th, IVECO did host at its Ulm Delivery Centre a
round table with customers and other stakeholders in the development of NGV. The Rally ended in
October 5th
, coinciding with the St. Petersburg International Gas Forum.
The main theme of the rally was the use of LNG in heavy vehicles. LNG-powered trucks successfully
completed every stage of the rally. Among them were Russia’s first certified LNG-powered vehicles: the
KAMAZ truck and the URAL NEXT workshop truck with a crane manipulator. The prototypes of the
trucks were developed by the KAMAZ concern and the GAZ Group in conjunction with GAZPROM. The
rally also involved LNG-powered trucks made by IVECO, SCANIA, and Minsk Automobile Plant, as well
as CNG cars from VOLKSWAGEN, SEAT, and LADA.
Figure 13-1. Start of the Rally in Carregado
71
Figure 13-2. Arrival of the Rally in St Petersburg
This year’s edition of the Rally focused on LNG for freight transport, to show that this sustainable fuel
combines the benefits of excellent environmental performance with cost efficiency, and provides a
viable alternative to diesel for freight transport that is available now.
72
Partners