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Bulk Transportation

Since the first gas industries were established in the 19th century, Natural Gas was traditionally transported via pipeline from the well or production field to the final consumer. Until today, the majority of the NG worldwide continues to be transferred only via pipeline network.
However, the surging demands for energy combined with the following additional realities have created the need for additional NG transportation solutions. For example:

  • Several of the world's large NG reservoirs situated particularly close to industrialized nations have been emptied
  • Global demand for an alternative to oil is growing
  • Rapidly developing emerging economies also seek energy resources

To meet the needs of a growing energy market, bulk transportation technologies and solutions have been introduced including LNG (Liquified Natural Gas) and CNG (Compressed Natural Gas). LNG provides a transportation method with a very strong economy of scale. This means that LNG technology is particularly feasible for transporting extraordinarily large quantities of NG. This method only works best in situations where large gas reserves require transoceanic transportation to large gas networks. By contrast, LNG would not be the appropriate solution for a small island, or market.

Gas transport from Stranded and Associated Gas production fields 

A growing percentage of NG in the world is currently stranded or associated gas.

Stranded Gas refers to NG that remains in the well because the building of pipeline infrastructure from the reserve will not prove profitable. This is the case when the reserve is small, or distant from consumers.

Associated Gas is gas found together with oil. Typically this gas is flared as it too is not economically viable to transport via pipeline. New bulk transportation solutions enable the monetization and utilization of stranded and associated gases.

Gas delivery to consumers

Even when large gas reserves are close to the consumer, the development of expanded transmission and distribution pipeline networks remains a slow process. Developing a pipeline network requires the following:

  • High initial capital investment with a return over many years
  • Large amounts of land, including solving the related real-estate commercial and governmental issues
  • Legal approvals for the building of gas infrastructure

Furthermore, once these requirements are met, transmission pipelines must overcome the physical difficulties of landscape, climate, etc. for construction. Distribution pipelines must deal with the difficulties of constructing in high-density urban areas. Plus, distribution pipelines require the presence of a larger transmission line. In countries such as the United States and United Kingdom-considered pioneers in the NG industry-the current pipeline infrastructure network was developed over a span of 100 years.

  • US Pipeline Network - 18 millions km
  • UK Pipeline Network - 280 thousands km, 22 million gas clients

Emerging Economies

In rapidly developing nations, especially those with large populations, the demand for energy is constantly growing. As NG is cheaper and cleaner than oil, and in many cases readily available in these nations, solutions must be implemented to develop NG without pipeline infrastructure. In India, Thailand and Indonesia for example, countries with extremely large populations and growing industry, the amount of NG which can be distributed by the current NG pipeline networks cannot supply even a small percentage of the demand.

  • India Pipeline Network - 10,500 km (2007)
    GAIL, serving 87% of the gas transmission business and 73% of the gas marketing business, provides gas to only 500 industrial consumers and 330,000 households. 
  • Thailand Pipeline Network - 774 km
  • Indonesia Pipeline Network -2547 km (2003) 

Developing nations represent a tremendous market opportunity for bulk transportation providers. Energtek's low-pressure storage technology solutions, including LMP (Low-pressure Mobile Pipeline), represents the most efficient method of transporting NG in several application and business cases. Recently, Energtek has begun commercialization of the LMP road transportation system, and continues development the marine/river transportation application.