0.25 to 1.00 US$/MMBtu $0.70 per Mcf +/- $0.30 depending on distance
It included development of peer groups and normalisation factors to enable comparison of LNG ships with differences in operating trades (spot vs. dedicated), travelling distances, containment type, ship capacity, ship speed, propulsion type, boil-off handling, drydock cycle periods for refits and build year. Poster PO-01 PO-01.5 Operating Costs This module compares annual cost data to enable cost effectiveness comparisons to be made with similar vessels. A Cost Index has been developed to allow comparisons between fleets with different refit cycles and different energy usage. LNG has some fixed costs above and beyond the cost of the raw natural gas. These costs are typically amortized over 20 years. The most significant of those fixed costs are: 1) Liquification plant $1.1 per Mcf +/- $0.20. 2) Shipping costs (LNG tankers and operating costs) $0.70 per Mcf +/- $0.30 depending on distance. 3) Cost for regasification $0.35 per Mcf. The costs come out to $2.15 per Mcf. Note that the costs would be lower for oil and gas fields where the primary reason to drill the well was to produce the oil. Adding up everything, the cost to get LNG to market is in the range of around $2.90 to $4.15 per Mcf. This sets the “base price” under which LNG won’t be produced and exported. Shaping the shipping industry. Since a newbuild LNG carrier is expensive—a standard vessel can cost around $200 million plus—these carriers are largely chartered out for several years (five years or more). There were 397 LNG (liquefied natural gas) carries at the end of March 2014, according to Golar LNG Ltd. (GLNG). While there are a few different types of LNG vessels, the two dominant containment systems, Moss (nicknamed “dinosaur egg”) and Membrane systems are employed today. Enlarge Graph. LNG vessel types. There were 397 LNG (liquefied natural gas) carries at the end of March 2014, according to Golar LNG Ltd. (GLNG). While there are a few different types of LNG vessels, the two dominant containment systems, Moss (nicknamed “dinosaur egg”) and Membrane systems are employed today. Enlarge Graph. To respond to this need, Shell Shipping Technology, with its extensive knowledge of LNG ship operational management, joined with the consultancy arm of Shell Global Solutions 1, with its track record in benchmarking in the process industry to run a pilot scheme with selected LNG ship owning groups. Poster PO-01 PO-01.5 Operating Costs This module compares annual cost data to enable cost effectiveness comparisons to be made with similar vessels. A Cost Index has been developed to allow comparisons between fleets with different refit cycles and different energy usage. The reason why this is a good time to begin benchmarking LNG Carriers is three-fold: Volume growth The number of LNG Carriers operating in the world is increasing at a dramatic rate. It took 34 years to put the first 100 ships in service and by mid 2006 (after only another 8 years) it reached 200 ships. Poster PO-01 PO-01.5 Operating Costs This module compares annual cost data to enable cost effectiveness comparisons to be made with similar vessels. A Cost Index has been developed to allow comparisons between fleets with different refit cycles and different energy usage. Operational performance areas that were compared were health & safety, operating costs, ship availability & utilisation, port performance, cargo management (including boil-off rates and heel management), personnel and environmental impacts. Poster PO-01 PO-01.5 Operating Costs This module compares annual cost data to enable cost effectiveness comparisons to be made with similar vessels. A Cost Index has been developed to allow comparisons between fleets with different refit cycles and different energy usage. Untapped value The LNG Carrier part of the total LNG supply chain is substantial with operating costs varying from 0.25 to 1.00 US$/MMBtu, depending upon distance transported and ship costs. The reason why this is a good time to begin benchmarking LNG Carriers is three-fold: Volume growth The number of LNG Carriers operating in the world is increasing at a dramatic rate. It took 34 years to put the first 100 ships in service and by mid 2006 (after only another 8 years) it reached 200 ship
http://www.ivt.ntnu.no/ept/fag/tep4215/innhold/LNG%20Conferences/2007/fscommand/PO_01_Grose_s.pdf http://shareholdersunite.com/the-ioc-files-useful-background-material/the-economics-of-lng/ http://marketrealist.com/2014/05/expensive-lng-carriers-results-in-dividends/ http://marketrealist.com/2014/05/expensive-lng-carriers-results-in-dividends/ http://www.ivt.ntnu.no/ept/fag/tep4215/innhold/LNG%20Conferences/2007/fscommand/PO_01_Grose_s.pdf http://www.ivt.ntnu.no/ept/fag/tep4215/innhold/LNG%20Conferences/2007/fscommand/PO_01_Grose_s.pdf http://www.ivt.ntnu.no/ept/fag/tep4215/innhold/LNG%20Conferences/2007/fscommand/PO_01_Grose_s.pdf http://www.readbag.com/www-static-shell-static-globalsolutions-downloads-aboutshell-technical-documents-lng-carrier-benchmarking
lng carrier operating cost