OSG continues to diversify its business by moving into new and related markets, the most recent being liquefied natural gas (LNG) and compressed natural gas (CNG).
As one of the cleanest and most abundant fossil fuels in the world, demand for natural gas is on the rise. With crude oil being pumped to capacity, energy costs climbing higher and world energy demand rapidly increasing, natural gas is growing in importance to the worldwide energy supply chain. LNG is an attractive clean energy source for major markets such as the United States, Asia and Europe, where the use of LNG is expected to expand significantly.
How is LNG Transported?
LNG is natural gas that at a treatment and liquefaction site is cooled to -161 degrees Celsius/-260 degrees Fahrenheit, at which point it condenses to a liquid. The liquefaction process reduces the volume of the gas by approximately 600 times, which makes it economical to transport in specially designed gas carriers.Upon reaching its destination at a storage and regassification terminal, the fuel is warmed and returned to a gaseous state.
Innovation Drives LNG Carrier Design
OSG’s Q-Flex LNG carriers are some of the most sophisticated vessels in the world.Each ship can transport 216,000 cubic meters of LNG, approximately 40 percent more than conventional LNG vessels in service today. In addition, these carriers have significantly lower energy requirements due to economies of scale created by their size and the efficiency of the engines. The new class of ships is powered by low-emission, electronically controlled diesel engines, compared with steam propulsion that fuels older LNG vessels.
Additional attributes of the state-of-the-art vessels include dual propeller and rudders (a redundant safety feature) and advanced security systems. An on-board reliquefaction plant cools boil-off gas and converts it back to liquid for return to the tanks. Vessels without this advanced technology can lose large amounts of gas due to boil-off before reaching their destinations. The vessels are long-term, 25-year charters to Qatargas.
CNG
OSG has partnered with TransCanada CNG Technologies Ltd. to provide a complete CNG marine transportation service to customers worldwide. The venture is currently developing what it hopes will be the first commercially viable CNG vessel and identifying specific projects to transport CNG to market. Using TransCanada’s patented technology for design, construction and operation of Gas Transport Modules (GTMs), and OSG’s in-depth knowledge of marine transportation and vessel construction, the venture will transport CNG from stranded gas fields throughout the world.
What and Where is CNG?
CNG is natural gas that has been compressed such that it can be transported in pressurized containers on ships, barges or trucks rather than by pipeline. In many parts of the world, gas fields that cannot be readily connected by pipeline or developed for LNG are excellent candidates for CNG development. More than one-third of global natural gas reserves are classified as stranded. Marine transportation of gas from fields 500 miles offshore is cost-effective and of particular interest in areas of the world without a fully developed power infrastructure.
Facts and Figures
- Number of vessels in OSG's LNG fleet: 4
- LNG is a natural gas that is stored and transported in liquid form at atmospheric pressure at a temperature of -161 Celsius/-260 degrees Fahrenheit
- Vessel Statistics: capacity 216,000 cubic meters; length 315 meters; beam 50 meters
- Charter profile: 25 year contract terms
- OSG’s industry viewpoint
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