New Technologies for Natural Gas Supply in the Baltic Sea – Economic Aspect

Ewelina Chlopinska, Diana Kotkowska, Alexander Autzen
European Research Studies Journal, Volume XXIV, Issue 3B, 200-212, 2021
DOI: 10.35808/ersj/2458


Purpose: Modern technology is contributing to the development of projects and modifications to existing Liquefield Natural Gas (LNG) import terminals that enable efficient distribution of liquefied natural gas. When considering Small Scale LNG (SSLNG), it is important to consider the amount of LNG demand and how the feedstock will be distributed. This paper describes SSLNG technology initiatives that guarantee fast and attractive returns in the medium term. Design/Methodology/Approach: In the first part of the paper, theoretical background of LNG is described. The SSLNG supply chain and the main actors in the distribution process were characterized. Findings: The method of determining the LNG price, which depends on many components, was determined. Distribution costs were classified with reference to the SSLNG fleet in terms of the type of propulsion used. The benefits of implementing SSLNG were indicated. In the next part of the study, the predicted number of vessels which will use LNG as propellant was simulated. This made it possible to determine the price of LNG. The analysis was performed using the Monte Carlo method on the example of the Baltic Sea with a forecast to 2026. Practical implications: SSLNG technology with reduced investment requirements and a short commissioning period reduces the uncertainty of project timing. Depending on the choice of LNG management, different actors are involved in the supply chain. The analyses presented here show that participants in the distribution process have a significant impact on network integration. SSLNG enables the addition of capacity to have the ability to handle increased demand for LNG. Thus, it is possible to synchronize the supply chain. Originality value: For the first time, to our knowledge, determining the situation, anticipating, monitoring, and responding to changes is the basis for designing SSLNG for optimal use.

Cite Article (APA Style)