Abstract
LNG projects are highly capital intensive and this has long been regarded as being inevitable. However, recent developments are forcing the LNG industry to aggressively seek cost reductions. For example, the gas-to-liquids (GTL) process is increasingly seen as a potential rival technology and is often being touted as an economically superior alternative fuel source. Another strong driving force behind needed cost reductions is the low crude oil price which seems to have settled in the $10--13/bb. range. LNG is well positioned as the fuel of choice for environmentally friendly new power projects. As a result of the projected demand for power especially in the Pacific Rim countries several LNG terminal projects are under consideration. Such projects will require a new generation of LNG terminal designs emphasizing low cost, small scale and safe and fully integrated designs from LNG supply to power generation. The integration of the LNG terminal with the combined cycle gas turbine (CCGT) power plant offers substantial cost savings opportunities for both plants. Various cost reduction strategies and their impact on the terminal design are discussed including cost reduction due to integration.