News Release

20
04Month
2016

CIMC Enric Boosting LNG Logistics Mode Upgrade

Publisher:CIMC   

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Featured as flexible engine ignition, small area and not relying on the natural gas pipeline network, the supply model of non-pipeline natural gas (especially LNG) became more popular in the global market. Currently, with the growth of LNG trade market, the LNG transport market developed rapidly on the basis of Internet of Things. 

To find a more convenient, safer and more economical way, the industry tried to explore different LNG logistics modes, such as land or sea transportation, even the multimodal transport, among which the most representative product should be the “Tank Containers” and a series of innovative logistics modes.


Successful Application of “Done at One Go” by the Combination of Sea and Land Transport


As of now, the joint transport of “Done at One Go” for LNG tank containers initiated by CIMC Enric has been operated for one year in USA by sea and land, which is expected to contribute to the upgrade of global LNG logistics mode.

"Compliant with the international marine standard (IMG), the two LNG tank containers of 40-feet gooseneck tunnel, 45 m3 and loading capacity of 17.6t LNG (calculated based on the filling ratio of 90%) are mainly used to transport LNG between Hawaii and USWC liquefaction plant, and has been put into service in a safe and high-efficient manner for a year. The steady use in the continual hot and humid environment of Hawaii fully explains the quality and performance of LNG tank containers transported by multi channels in a combined manner. Such containers shall be technically verified subject to practical and continuous operations, that is, no leakages or abnormities exist during 1 year's operations -- as recognized by customers, the products have satisfied the international leading level." said Wang Bihui, Manager of the Marketing Department of chemical equipment business center in the interview.

It is said that the LNG tank container of 40-feet gooseneck tunnel has the weight 15% less than a common one due to its interior and outer made of stainless steel; it is also undamaged (the liquid is not leaked or gasified in the tank) for 10% longer period (up to 93 days) during the Germany low-temperature performance test, certified by German TUV. In December, 2014, it is achieved to transport the Containers by the combination of land and sea transportation in Los Angeles, America, with 4,800 km of one-way transport distance. This proves that China is able to design and produce the LNG tank containers with international advanced level. At present, CIMC Enric is the only domestic manufacturer to export such LNG tank container.


LNG Trade Costs Significantly Reduced


According to the industrial experts, the existing container ships may be directly used to transport LNG instead of new ones or LNG transport ships rent, significantly reducing the trade cost of LNG.

It is reported that over RMB 1 billion is required to build a LNG ship and about USD 100,000 to rent the same per day in the market. While the container terminal may be used to unload LNG containers with no need to construct exclusive LNG container terminals. As estimated, if the LNG tank containers are widely used, the CIF of LNG imported from North America to Asia will be reduced to USD 10/ mmbtu (million British Thermal Unit), which is significantly lowered compared with the long-term negotiated price of USD 15/mmbtu in Asia.

Wang Bihui indicated that the domestic logistics service providers like STOLT, HOYER and Sinochem were engaged in LNG transport by sea and land, and those of sea transportation like MSK and YML may contract for LNG tank containers for dangerous cargos of Class 2.1 (LNG belongs to the dangerous goods of Class 2.1) which may be shipped under the international standards of IMDG/ADR/RID/TC/CSC, and the products may arrive at and depart from the ports just through the wharf for the common containers of dangerous cargo.


“Done at One Go” multimodal transport supports the import of medium and small batch of LNG


With the constantly improved technology and increased demands on LNG over the years, LNG tank containers launch in the market of North America. Such new LNG logistics pattern is also put into trial operation in domestic.

As the first enterprise engaging in the transport of LNG tank containers in China, INTHE plays an important role in successfully transporting LNG by actual ships for several voyages.

The project of LNG rail tankers of largest load in China developed and designed by Changjiang officially launches in Wuhan, and is expected to be put into trail operation in early 2016.

However, in 2013, CIMC Enric provided 40-feet LNG tank containers of GX42T7-LNG-01 required for the first trial transport of LNG by railways initiated by China Railway (original Ministry of Railways), filling the gap in transport of LNG by railways. As of now, tank containers supplied by CIMC Enric accounts for 45% of the global stock of tank containers.

According to the industry experts in press interviews, the “Done at One Go” LNG logistics pattern is in the ascendant throughout the European and American markets, and expected to be widely used in China. First of all, as LNG resources are mostly located overseas, there is approximately 1/3 of imported LNG resources are consumed in China; secondly, the current mode of large LNG receiving station plus large LNG transport ship and the construction of infrastructures require high-qualification, large investment and long period, and most of the existing facilities are monopolized; LNG spot trade will be one of the trends, and the trade of medium and small batch of LNG requires a flexible delivery mode.

However, the LNG transport of containers by land, railway and sea may improve the existing mode of taking road tankers depending on LNG receiving station and therefore customers, and support a new channel to achieve rapid allocation of LNG resources and safe arrival at users’ which could enhance additional value and customer loyalty, leaving it possible to enlarge the market of importing medium and small batch of LNG.