Comparison of the Multi-Directional Delivery Efficiency of Low-Tonnage LNG and Pipeline Gas in Russia

Authors: Pavel Tcvetkov, Daniil Pritulyak, Dmitriy Tananykhin

Journal: IOP Conf. Series: Journal of Physics

DOI: http://doi.org/10.1088/1742-6596/1072/1/012021 

Abstract:  One of the fastest growing areas of the gas industry is low-tonnage LNG production, which allows to improve the efficiency of the gas distribution process due to the flexibility of the supply routes. A small number of articles devoted to this field, indicate that LNG is less attractive than pipeline gas from an economic point of view, however, such estimates do not take into account the flexibility of LNG delivery routes. This article proposes a model for a comparative assessment of the LNG and pipeline gas price. The distinctive feature of the model is the possibility of changing the number of delivery directions, which makes it possible to evaluate the impact of the LNG transportation flexibility. The results show that in contrast to the pipeline gas, the increasing in the number of supply routes with the same total volume of deliveries, does not reflect on the price of LNG. In addition, this causes a decrease in the minimum delivery distance at which LNG automobile transportation can compete with a pipeline.