LNG and Bio-LNG. Sourcing, Marketing, Trading, Financing

Helping the Global Energy Transition

We are contributing to the global energy transition by marketing and facilitating the supply of cleaner and more sustainable fuels worldwide.

Sourcing, Marketing, Trading, Equipment, Financing

Through our partners and collaborators worldwide, we are focused on the global energy transition and offering innovative solutions in LNG and Bio-LNG to promote sustainability and protect the environment. We also handle supply solutions, trading, and marketing in this field.

LNG is considered by many experts worldwide as the best bridge fuel to renewable energy and to help achieve Zero net emissions. Bio LNG is a clean fuel that can reduce CO2 emissions by up to 80% compared to diesel. Renewable Liquified Natural Gas is a biofuel made by processing organic waste flows.

What is Bio-LNG (Renewable LNG)

Bio LNG offers a Bright and Green Future in the Transport and Energy Sectors.

Amidst the pressing need for sustainable energy solutions, Bio-LNG emerges as a beacon of hope in the global quest for greener alternatives (such as Hydrogen, Ammonia, etc).

Bio-Liquefied Natural Gas (or Green LNG) represents a significant advancement in sustainable energy solutions, blending the benefits of LNG with renewable biofuels derived from organic sources. Like traditional LNG, Bio-LNG is produced by liquefying biomethane, a renewable gas generated from the anaerobic digestion of organic waste materials such as agricultural residues, food waste, and wastewater.

Benefits of Bio-LNG:

One of the key advantages of Bio-LNG lies in its environmental credentials. By utilizing organic waste streams as feedstock, Renewable LNG helps mitigate greenhouse gas emissions by recycling methane that would otherwise be released into the atmosphere. This process creates a closed-loop cycle, where carbon dioxide emitted during combustion is offset by the carbon dioxide absorbed during the growth of the organic feedstock, resulting in a net reduction in greenhouse gas emissions.

Future Global Demand for Bio-LNG:

The future demand for Renewable LNG (RLNG) is poised for growth, driven by increasing emphasis on decarbonization and the transition to a circular economy. Governments and industries worldwide are recognizing the potential of Biomethane as a renewable energy source that can complement traditional LNG and help achieve ambitious climate targets.

Supply Chain for Bio-LNG:

Supplying Bio-LNG involves a similar process to traditional LNG production, with the additional step of sourcing and processing biomethane from organic waste streams. Advanced anaerobic digestion technologies and biogas upgrading facilities are employed to convert organic waste into high-purity biomethane suitable for liquefaction. Once liquefied, Biomethane can be shipped to ports across the world using LNG ISO Tanks, small LNG carriers or dedicated vessels. The distribution and utilization pathways are similar as traditional LNG, providing a clean energy to the transport and energy sectors.

LNG

Liquefied Natural Gas is a bridge between fossil fuels and renewable energy.

LNG is seen by many experts as the most effective bridge fuel for reducing greenhouse gas emissions in countries who are relying heavily on Diesel and Coal for Power Generation.

Liquefied Natural Gas (LNG):

Liquefied Natural Gas (LNG) has emerged as a pivotal player in the global energy landscape, revolutionizing the way natural gas is transported and consumed. LNG is natural gas that has been cooled to approximately -162°C (-260°F) to convert it into a liquid state. This process reduces its volume by around 600 times, making it more economical to transport over long distances via specially designed ships.

Benefits of LNG:

One of the primary benefits of LNG lies in its versatility. It serves as a cleaner alternative to traditional fuels like coal and oil, emitting fewer greenhouse gases and pollutants when burned. Additionally, LNG offers greater energy security, as it can be sourced from various locations worldwide, reducing dependence on any single region or supplier. Its flexibility makes it a preferred choice for meeting diverse energy needs, including electricity generation, heating, and transportation.

Source: Shell LNG Outlook 202 4

Future Global Demand for LNG:

The future outlook for LNG is promising, with growing global demand fueled by several factors. Rapid urbanization, particularly in emerging economies, is driving increased energy consumption, with LNG playing a pivotal role in meeting this rising demand. Additionally, environmental concerns and stricter emissions regulations are prompting a shift towards cleaner energy sources, further bolstering the demand for LNG.

Source: Shell LNG Outlook

Conventional Supply Chain for LNG:

Supplying LNG involves a complex process that begins with the extraction of natural gas from reservoirs. The gas is then processed to remove impurities and liquefied through a cryogenic cooling process. Once liquefied, it is transported via specialized LNG carriers to import terminals located around the world.. At these terminals, the LNG is regasified and distributed via pipelines to end-users such as power plants, industrial facilities, and residential consumers.

Small-Scale LNG

The LNG can also be transported in smaller volumes by ocean carriers (or specialized dedicated vessels) using LNG ISO Tanks. The LNG or Bio-LNG Containers can be shipped to ports across the world.

You can find more details about Small-sacle LNG below on this page.

Innovation in the LNG Industry:

As the LNG industry continues to evolve, innovation and investment in infrastructure will be crucial for meeting growing demand and ensuring reliable supply chains. Developments in floating LNG technology and small-scale LNG facilities are expanding market access and providing opportunities for remote and underserved regions to access cleaner energy.

Conclusion:

In conclusion, LNG and Bio-LNG represent integral components of the global energy transition, offering sustainable alternatives to conventional fuels while addressing energy security and environmental challenges. As demand continues to grow, innovation and investment across the LNG value chain will be essential for realizing the full potential of these transformative energy sources.

The Supply Chain of Small-Scale LNG & Bio-LNG

ISO Tank Containers

The supply chain of LNG and Bio-LNG utilizing ISO tank containers, particularly in small-scale LNG operations, involves different key stages:

Feedstock Sourcing:

In both LNG and Biomethane production, the first step is sourcing the feedstock. For traditional LNG, this involves accessing natural gas reservoirs. For Bio-LN G, organic waste materials such as agricultural residues, organic waste, and animal manure serve as feedstock.

Processing and Liquefaction:

Once the feedstock is acquired, it undergoes processing to remove impurities and ensure purity. In the case of LNG, natural gas is cooled to cryogenic temperatures to convert it into a liquid state. Similarly, for Bio-LNG, biomethane derived from organic waste is purified and liquefied through a ”digester” and cryogenic process.

Storage and Transportation in ISO Tank Containers:

ISO tank containers, standardized containers designed for the safe transportation of liquids, play a crucial role in small-scale LNG supply chains. Once liquefied, LNG and Bio-LNG are transferred into ISO tank containers for storage and transportation. These containers are capable of maintaining the cryogenic temperatures required to keep LNG and Bio-LNG in their liquid states during transit.

Distribution and Delivery:

The ISO tank containers loaded with LNG or Liquefied Biomethane are transported via various modes of transportation, including trucks, trains, and ships, depending on the distance and destination. These containers are delivered to distribution centers or directly to end-users, such as industrial facilities, power plants, or remote communities.

Regasification (for LNG):

Upon reaching their destination, LNG stored in ISO tank containers may undergo regasification processes at small-scale regasification terminals. Here, LNG is converted back into its gaseous state before being distributed through pipelines to end-users.

Utilization:

Both LNG and Bio-LNG are utilized as clean-burning fuels in a variety of applications, including power generation, industrial processes, and transportation. The versatility of LNG and the renewable nature of RLNG make them attractive options for reducing greenhouse gas emissions and transitioning towards more sustainable energy sources.

Throughout this supply chain, ISO tank containers ensure the safe and efficient transportation of LNG and Bio-LNG, enabling access to clean energy solutions in remote or underserved areas and facilitating the transition to a more sustainable energy future.

Bio-LNG Project Financing

Project financing for Bio-LNG projects through private investors and equity partners involves structuring investment arrangements to fund the development, construction, and operation of Bio-LNG facilities. Private investors and equity partners provide capital in exchange for ownership stakes or returns on their investment.

Equity Partnerships:

Typically, the financing structure for Bio-LNG projects may include a combination of debt and equity financing. Equity partners contribute funds in exchange for ownership shares in the project, allowing them to participate in its profits and potential growth. These equity investments provide the necessary capital to cover upfront costs, such as land acquisition, permits, and construction expenses.

Role of Private Investors:

Private investors play a crucial role in project financing by providing capital either directly or through investment vehicles such as private equity funds or venture capital firms. These investors may include institutional investors, high-net-worth individuals, or specialized energy investment firms with an interest in renewable energy projects.

Financing Terms and Arrangements:

The financing terms and arrangements vary depending on the specific project requirements, risk profile, Country and expected returns. Equity partners may receive dividends or distributions based on the project’s financial performance, while also sharing in any potential upside through capital appreciation.

Debt Financing:

In addition to equity financing, debt financing is often utilized to supplement project funding. Debt providers, such as commercial banks or infrastructure funds, offer loans or credit facilities secured by project assets or future cash flows. These debt instruments help leverage equity investments and provide additional capital to support project development.

Due Diligence and Risk Assessment:

Project financing for Bio-LNG projects requires thorough due diligence, risk assessment, and financial modeling to attract investors and secure funding. Equity partners and private investors evaluate factors such as project feasibility, regulatory compliance, market dynamics, and potential returns before committing capital.

Collaboration and Alignment:

Successful project financing relies on effective collaboration between project developers, offtakers (buyers), equity partners, private investors, and lenders to align interests, mitigate risks, and ensure the long-term viability and profitability of Bio-LNG projects.

Accelerating Growth:

By leveraging private investment and equity partnerships, Bio-LNG projects can access the capital needed to accelerate growth, drive innovation, and contribute to the transition towards a more sustainable energy future.