Why small-scale exists
The economics have nothing to do with export. Small-scale LNG competes with diesel. A remote mine burning 50 million litres of diesel a year in haul trucks and power generation is a customer; so is a trucking fleet doing Perth–Port Hedland; so is a ferry operator facing emissions rules. LNG delivered by road tanker is cheaper per unit of energy than diesel in most years, cleaner-burning, and the trucks and engines to use it exist off the shelf.
The other driver is stranded gas. A small field with no pipeline, or an oil well flaring associated gas, can be turned into a product with a plant that fits on a few skids. The concept is called a "virtual pipeline" — the trucks are the pipe.
How it works — the nitrogen expander cycle
Most small-scale plants avoid hydrocarbon refrigerants entirely. Nitrogen is cheap, inert, and doesn't need make-up from fractionation. The cycle is a reverse Brayton cycle:
- Compress. Nitrogen is compressed to around 50–60 bar in a multi-stage centrifugal or screw compressor and cooled against air or water.
- Pre-cool. High-pressure nitrogen passes through the warm end of the cold box, cooled by returning low-pressure nitrogen.
- Expand. The nitrogen goes through a turbo-expander — a small turbine — where it drops to perhaps 8–10 bar and gets very cold (down to −170 °C). The work it produces drives a booster compressor on the same shaft ("compander").
- Chill the gas. The cold nitrogen flows back through the cold box, liquefying the natural gas in adjacent passages.
- Recycle. Warm low-pressure nitrogen returns to the compressor suction. The loop is closed — no refrigerant is consumed.
Dual-expander versions (two expanders at different temperatures) improve efficiency by 15–20%. Even so, a nitrogen plant uses about 0.5–0.7 kWh per kg of LNG, versus roughly 0.3 kWh/kg for a baseload C3MR train. At small scale nobody minds — simplicity, safety and fast start-up matter more than fuel cost.
Gas treatment at small scale
The same contaminants must go, but the equipment changes:
- CO₂ removal: amine is still used, but membranes and pressure-swing adsorption (PSA) are popular below about 100 tpd because they have no solvent, no reboiler and no chemical handling. Some micro plants simply run a mol sieve big enough to catch CO₂ as well as water, if the inlet CO₂ is low.
- Dehydration: molecular sieve, same as big plants but often a two-bed skid.
- Heavies: pipeline gas is usually lean enough that a simple separator after pre-cooling, or a small heavies removal column, is enough. Biogas needs siloxane and sulphur removal first.
- Mercury: a small carbon bed, frequently in a single vessel.
Storage, loading and the road
Small plants use vacuum-insulated double-wall tanks — a stainless inner vessel inside a carbon steel outer, with the gap under vacuum and packed with perlite or multilayer insulation. Heat leak is a fraction of a percent per day. LNG is loaded through vacuum-insulated hoses or small arms into road tankers, which are themselves vacuum-insulated and can hold product for days to weeks before pressure builds to the relief setting.
At the customer, a satellite station receives the LNG into another bullet tank and vaporises it on demand — usually through ambient air vaporisers, which are just tall finned aluminium tubes that frost up and are swapped over in pairs. A gas engine or generator downstream can't tell the difference from pipeline gas.
Where it's used
| Use | How | Example |
|---|---|---|
| Mine site power and haulage | LNG trucked from a plant near the pipeline to a remote mine; regasified for gensets, or used directly in dual-fuel haul trucks | EVOL LNG at Kwinana (WA) supplying Pilbara and Goldfields mines by road tanker |
| Heavy road transport | LNG refuelling stations on major freight routes; prime movers with cryogenic fuel tanks | Perth–Pilbara freight corridor; large fleets in China, Europe |
| Marine bunkering | Small bunker vessels or truck-to-ship transfer; LNG-fuelled ferries, tugs and container ships | Growing fast at Australian ports since IMO 2020 sulphur rules |
| Off-grid towns and industry | Satellite stations feeding a local gas network or a single plant | Remote towns in NT and WA; industrial users beyond pipeline reach |
| Bio-LNG | Biogas from landfill, dairy or wastewater is upgraded to biomethane and liquefied | Common in Europe; emerging in Australia |
| Flare gas recovery | Containerised plant at a well pad turns flared gas into LNG for trucking | US shale basins; concept studied for Cooper Basin |
Trade-offs
Strengths
- Low capital cost in absolute terms — tens of millions, not tens of billions.
- Fast to build, easy to relocate.
- Nitrogen cycle is safe and simple; start-up in hours.
- Flexible — can run at 30% rate or be stopped and restarted.
- Unlocks gas with no pipeline route.
Weaknesses
- High cost per tonne — several times baseload.
- High energy use per tonne.
- Logistics-heavy: the plant is only half the system; tankers, drivers and satellite stations are the rest.
- Boil-off in transport and storage is a constant loss if product doesn't turn over.
- Margin lives or dies on the diesel price.
Operating a small-scale plant
These plants are often run by a very small crew — sometimes one operator per shift with remote monitoring, or unattended with call-out. The daily work is loading trucks, managing tank inventory against a delivery schedule, mol sieve changeovers, and watching the expander bearing temperatures and vibration. Truck loading is the highest-risk routine task: connecting and purging cryogenic hoses, earthing, and making sure the tanker's pressure and level are right before transfer.
Small plants have proportionally more human contact with the product — hose connections, tanker loading, satellite station deliveries — so cryogenic burn and cold-embrittlement incidents are the everyday risk. Hoses and couplings must be cryogenic-rated, purged of air (to avoid oxygen freezing into an explosive solid with methane) and moisture. Nitrogen refrigerant is inert but a leak in an enclosed cold-box or building displaces oxygen silently. Road transport adds the public into the risk picture: tanker rollovers, relief valve venting in traffic, and dangerous goods rules.
Self-check — Module 3
- What is the main fuel that small-scale LNG competes against, and why does that matter for plant economics?
- Describe the four steps of a nitrogen expander cycle.
- Why is a nitrogen cycle chosen over mixed refrigerant at this scale despite using more energy?
- What is a "virtual pipeline"?
- Why must cryogenic hoses be purged of air before LNG transfer?