LNG Chain

Track 3 of 7

Moving LNG by sea

The largest track: containment and insulation, boil-off and reliquefaction, three generations of propulsion, the voyage cycle, cargo operations, chartering and the yards that can build the ships.

An LNG carrier is the part of the chain with the least good material published anywhere, and the part where the engineering is strangest. The cargo touches a metal skin about a millimetre thick, backed by insulation, leaning on the hull for structural support. That membrane has to stay leak-tight through hundreds of cooling and warming cycles while the steel around it shrinks by tens of centimetres.

The cargo is also its own refrigerant. Heat leaks in, a fraction of the liquid evaporates every day, and that evaporation is what keeps the rest cold. Whether the boil-off is burned in the engines, reliquefied and returned, or disposed of in a combustion unit is simultaneously a thermodynamic question, an emissions question and a commercial one.

This track runs from the metal of the tank to the terms of the charter, and it is deliberately the longest because the ships are where the constraint on LNG supply growth increasingly sits.

21 modules

All written.

  1. 01
    LNG carrier anatomy

    An LNG carrier is a ship built around insulated cargo tanks that hold liquefied gas at minus 162 degrees, with an engine able to burn the cargo vapour that inevitably boils off during the voyage.

  2. 02
    Membrane versus Moss tanks

    Cargo containment is the system that holds LNG at minus 162 degrees inside a ship, and it comes in two families: membranes, which are thin barriers supported by the hull, and free-standing tanks, which carry their own load.

  3. 03
    Containment II: Moss spheres and SPB tanks

    A free-standing LNG tank is one that supports its own weight and cargo loads rather than transferring them to the ship's hull, the two commercial designs being the Moss spherical tank and IHI's prismatic SPB tank.

  4. 04
    Insulation, Invar and holding the cold chain

    LNG containment insulation is the layered barrier that limits heat leaking into the cargo, and Invar is a nickel-iron alloy used in one membrane design because it barely contracts when the cargo cools it.

  5. 05
    Boil-off and reliquefaction

    Boil-off is the small fraction of an LNG cargo that evaporates each day as heat leaks into the tanks, and it is what keeps the rest of the cargo cold.

  6. 06
    Reliquefaction, subcooling and when they pay

    Reliquefaction is the process of cooling boil-off gas back into liquid and returning it to the cargo tanks, and subcooling is the partial version that chills the vapour enough to reduce cargo loss without eliminating it.

  7. 07
    Propulsion I: steam turbines and why they endured

    Steam turbine propulsion drives an LNG carrier by raising steam in boilers that can burn cargo boil-off gas, fuel oil, or any mixture of the two, and turning a turbine geared to a single propeller shaft.

  8. 08
    Propulsion II: DFDE and TFDE, the dual-fuel era

    Dual-fuel diesel electric propulsion uses medium-speed engines burning either boil-off gas or liquid fuel to generate electricity, which drives electric propulsion motors rather than a directly coupled shaft.

  9. 09
    Propulsion III: ME-GI, X-DF and two-stroke gas injection

    ME-GI and X-DF are the two families of low-speed two-stroke marine engine burning natural gas, differing in whether gas is injected at high pressure late in the cycle or admitted at low pressure and premixed.

  10. 10
    Ship classes: conventional, Q-Flex, Q-Max and small-scale

    LNG carriers fall into recognised size classes running from small-scale vessels under 30,000 cubic metres, through the 174,000 cubic metre conventional standard, to the 266,000 cubic metre Q-Max ships built for Qatar.

  11. 11
    Ice-class carriers and the Arctic routes

    An ice-class LNG carrier is a vessel strengthened to operate independently in sea ice, the highest commercial grade being Arc7 ships able to break ice astern, built to serve Arctic export projects along the Northern Sea Route.

  12. 12
    The voyage cycle: laden, ballast, heel and the return

    The LNG voyage cycle is the round trip of a laden leg carrying cargo and a ballast leg returning empty, with a small heel of LNG retained throughout to keep the tanks cold enough to load again on arrival.

  13. 13
    Cooldown, gassing up and the first cargo

    Cooldown is the controlled chilling of warm cargo tanks by spraying LNG into them, and gassing up is the preceding step of replacing inert gas with methane vapour so no carbon dioxide remains to freeze.

  14. 14
    Custody transfer: gauging, and who owns the error

    Custody transfer is the measurement determining how much energy passed between seller and buyer at loading or discharge, calculated from tank level, liquid temperature and density, and a laboratory analysis of the cargo composition.

  15. 15
    Ship-to-ship transfer and floating storage

    Ship-to-ship transfer is the movement of LNG directly between two vessels moored alongside one another, used for transshipment, replenishing floating storage, and breaking a full cargo into smaller parcels.

  16. 16
    The ship–shore interface: arms, ESD and compatibility

    The ship-shore interface is everything that must be compatible between a vessel and a terminal before LNG can be transferred, from manifold height and spacing to the linked emergency shutdown systems on both sides.

  17. 17
    Chartering: spot, time charter and tolling

    LNG chartering is the hire of a carrier, either for a single voyage at a spot rate or for a period under a time charter at a daily rate, with the charterer directing the vessel and the owner supplying and crewing it.

  18. 18
    What freight rates mean and why they swing

    An LNG freight rate is the daily cost of hiring a carrier, assessed by shipbrokers for standard routes and vessel types, and it swings violently because fleet supply cannot respond within the time demand changes.

  19. 19
    Who builds LNG ships

    LNG carriers are built by a very small group of shipyards, concentrated in South Korea, China and Japan, because the cargo containment work demands skills and facilities that take years to develop.

  20. 20
    Crewing and competency on a gas carrier

    Crewing an LNG carrier requires officers holding STCW gas tanker endorsements earned through both training and documented service on gas carriers, a qualification pool that expands more slowly than the fleet it has to staff.

  21. 21
    LNG as marine fuel: bunkering and the supply chain

    LNG bunkering is the supply of liquefied natural gas as fuel to ships rather than as cargo, delivered by bunker vessel, road tanker or shore pipeline, and governed by its own codes and standards.

Vocabulary for this track

48 terms, defined in full in the glossary.