LNG project analysis
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Our company produces hydrogen using 5,000 cubic meters of natural gas. We previously used pipeline gas supplied by China Resources, but due to its high cost, we plan to switch to LNG. What is the current market situation for LNG? What are the price fluctuations and supply conditions? Can production be ensured? Is operation straightforward? We hope that those with experience in this area can offer some guidance.
I’m asking out of curiosity: do you use China Resources pipeline gas and LNG both for hydrogen production, right? Firstly, it is recommended that you clarify the differences in their components. If we consider only the LNG market, there are no issues at present; your facility isn’t very large either, so using LNG is definitely fine.
Recently, there have been changes in the composition of China Resources Gas, with an increase in methane content, which has led to a decrease in hydrogen production rate
There are two options now: one is for the LNG supplier to handle the LNG regasification station project by signing a supply agreement, and the other is for us to undertake the regasification station project ourselves while purchasing LNG from outside. Which of these two options is better?
I suggest you make reasonable calculations based on your investment horizon; after all, those who build vaporization stations need to make a profit as well, right?
LNG is somewhat \"purer\" than pipeline gas; however, using LNG requires some specific gas handling facilities, but that’s about it
LNG exhibits varying gasification rates and calorific values depending on its methane content. For hydrogen production, natural gas is often used as the feed gas; in terms of volume-based calculation, a material with a high ethane content is more suitable
The second option is more suitable; it requires more initial investment, while the first one has many restrictions
Natural gas is purified during liquefaction to remove water and other impurity gases, especially hydrogen sulfide
What is the CNG price that China Resources offers you?