Page 61 - Handbook of Natural Gas Transmission and Processing Principles and Practices

volumes than either a pipeline or LNG and can grow incrementally to meet demand by simply
adding ships. It should be noted that, while pipeline and LNG are proven either as concepts or
technologies, CNG is still awaiting its first commercial application. Nevertheless, reflecting on the
system's simplicity, the level of engineering efforts invested and developed reliable cost estimates, it
is believed that the CNG technology is ready for commercialization (Economides and Mokhatab,
2007).
Further to the CNG technology, there are numerous technology alternatives to the currently
commercial pipeline and LNG options for transporting natural gas to markets on a wide range of
scales, which have been described previously. Unfortunately, few of them are yet receiving the
levels of investment and commitment required to bring them into widespread development. High
prevailing oil and gas prices around the world could change this lack of enthusiasm for embracing
novel technologies.
The transport options preferred by governments and companies must not only take the economic
risks into account but also consider the negative effects of possible terrorist activity, political
changes, and trade embargos over long periods of time. Thomas and Dawe (2003) cover many of
the essential technical points and broad economic pointers needed to enter the discussion of gas rich
states which do not need the gas for domestic use, but wish to monetize their reserves by export.

FIGURE 1.12 Comparison of the cost of transporting gas via pipeline and LNG; for 1 tcf/year and
including regasification costs (Economides and Mokhatab, 2007).

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