AGL Resources, the Department of Energy and Conversion Gas Imports LP say they have discovered a new method of regasifying liquefied natural gas (LNG) that will speed up the delivery process and improve cost efficiencies at a time when the number of proposed LNG import terminals in the United States has grown to more than 30.

Tested in its first full-scale field trial at an LNG facility owned and operated by AGL Resources’ subsidiary, Atlanta Gas Light, the Bishop Process heat exchanger from CGI proved that it can use water to warm imported LNG quickly and efficiently. In this way, LNG can be off loaded from ships and stored economically in underground salt caverns or sent directly into pipelines for delivery. Initial estimates indicate underground storage in salt caverns is less expensive than conventional above-ground tank storage.

“History was made on a hilltop in Georgia,” said Mike McCall, chief executive officer of Houston-based CGI. “The Bishop Process heat exchanger has a higher efficiency and operating pressures than other designs, allowing ships to be off loaded quickly and directly into manmade salt caverns, eliminating the need for expensive, above-ground storage tanks. This reduces the capital and operating costs of an LNG terminal.”

In addition to CGI and AGL Resources, there were 25 other companies that sponsored the $2.7 million test conducted April 12-15, which was touted as a successful public-private partnership.

“Additional access to imported LNG will be easier to achieve than opening new reserves in this country,” said Lindsay Thomas, AGL Resources’ senior vice president of governmental affairs. “It will take partnerships and consortiums like this one to meet the energy needs of our country.”

The technology was developed by Bill Bishop, a former government scientist with experience in the space program and the strategic petroleum reserve who is now a partner in Conversion Gas Imports.

“Our unique high-volume, high-pressure heat exchanger facilitates short unloading times comparable to those achieved in conventional LNG storage terminals,” said Mike McCall, CEO of Houston-based CGI. “In addition, ship unloading can be accomplished offshore, miles from the storage caverns, providing further siting flexibility.”

The application for the Bishop Process heat exchanger will be in coastal areas at LNG receiving terminals. Additional testing of offshore mooring systems could allow for salt cavern-based terminals located completely offshore, so LNG tankers would never have to enter congested port facilities. Five offshore Louisiana LNG terminals have been announced, but McMoRan’s Main Pass Energy Center is the only one so far that is associated with a proposed salt cavern storage facility onsite (see Daily GPI, March 2).

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