Module 3

Small-scale and micro LNG plants

Overview

LNG as a fuel instead of a commodity. These plants make tonnes per day, not millions per year, and their customers are mine haul trucks, road trains, ferries and diesel generators in places the pipeline never reaches.

Small-scale — nameplate
SizeMicro: under 10 tpd. Small: 10–500 tpd (0.004–0.2 mtpa). A 200 tpd plant is a decent-sized one.
FeedPipeline gas, a small onshore field, coal seam gas, biogas (bio-LNG), or gas that would otherwise be flared
RefrigerationNitrogen expander (most common), SMR, or Stirling / Brayton cryocoolers at micro scale
Delivery formSkid-mounted or containerised; a whole plant can arrive on a few trucks
StorageVacuum-insulated bullet or sphere tanks, 100–5,000 m³
DistributionCryogenic road tankers (about 20–22 t LNG per B-double), 40 ft ISO tank containers, small bunker vessels
Build time12–24 months; containerised micro plants in under a year
Loading the small-scale process deck…

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:

  1. Compress. Nitrogen is compressed to around 50–60 bar in a multi-stage centrifugal or screw compressor and cooled against air or water.
  2. Pre-cool. High-pressure nitrogen passes through the warm end of the cold box, cooled by returning low-pressure nitrogen.
  3. 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").
  4. Chill the gas. The cold nitrogen flows back through the cold box, liquefying the natural gas in adjacent passages.
  5. 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

UseHowExample
Mine site power and haulageLNG trucked from a plant near the pipeline to a remote mine; regasified for gensets, or used directly in dual-fuel haul trucksEVOL LNG at Kwinana (WA) supplying Pilbara and Goldfields mines by road tanker
Heavy road transportLNG refuelling stations on major freight routes; prime movers with cryogenic fuel tanksPerth–Pilbara freight corridor; large fleets in China, Europe
Marine bunkeringSmall bunker vessels or truck-to-ship transfer; LNG-fuelled ferries, tugs and container shipsGrowing fast at Australian ports since IMO 2020 sulphur rules
Off-grid towns and industrySatellite stations feeding a local gas network or a single plantRemote towns in NT and WA; industrial users beyond pipeline reach
Bio-LNGBiogas from landfill, dairy or wastewater is upgraded to biomethane and liquefiedCommon in Europe; emerging in Australia
Flare gas recoveryContainerised plant at a well pad turns flared gas into LNG for truckingUS 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.

Safety specifics for small-scale

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
  1. What is the main fuel that small-scale LNG competes against, and why does that matter for plant economics?
  2. Describe the four steps of a nitrogen expander cycle.
  3. Why is a nitrogen cycle chosen over mixed refrigerant at this scale despite using more energy?
  4. What is a "virtual pipeline"?
  5. Why must cryogenic hoses be purged of air before LNG transfer?