Investigating the Operation of an LNG Carrier as a Floating Power Generating Plant (FPGP)

Abstract

The paper provides a novel alternative solution for the old generation turbine LNG carriers (LNG/Cs) in order to extend their life cycle, thus avoiding their demolition. Nowadays, the use of liquefied natural gas (LNG) as fuel for the production of electricity is predominant against other fossil fuels. LNG has been widely recognized as the most promising alternative fuel, combining both high efficiency and environmental friendliness. The old generation of steam turbine LNG/Cs with the distinct disadvantage of a low thermal efficiency ratio, leading to higher fuel costs, are coming to a crossroad, which is either to keep the vessel on duty until the end of their life cycle, earning low fares as those are not preferred from the charterers, or to change the use of the vessel, converting them either to a FSRU (floating storage regasification unit) or to a FPGP (floating power generating plant). In this paper, the last alternative is proposed via a holistic examination of the techno-economical (the CBA performed calculates all related metrics) but also in terms of the electric energy market by utilizing power purchase agreements (PPAs) and the contracts for difference (CfDs). This conversion into an FPGO is a novel approach providing a ‘win–win’ solution scheme, on the one hand, to areas with the non-economical bunkering chain of LNG along with non-expensive electricity production, while on the other hand, it provides an extension of the profitable life cycle of the LNG/Cs under study, which would otherwise have been considered of obsolete technology. The proposition is supported by figurative numerical case studies that help extract tangible conclusions regarding the degree of the investment viability.