• Journal of Korean Institute of Industrial Engineers
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• v.41 no.3
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• pp.259-266
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• 2015

Among many energy resources, natural gas has recently received a remarkable amount of attention, particularly from the electrical generation industry. This is in part due to increasing shale gas production, providing an environment-friendly fossil fuel, and high risk of nuclear power. Because South Korea, the world's second largest LNG importing nation after Japan, has no international natural gas pipelines and relies on imports in the form of LNG, the natural gas has been traditionally procured by long term LNG contracts at relatively high price. Thus, there is a need of developing an Asian LNG trading hub, where LNG can be traded at more competitive spot prices. In a natural gas spot market, the amount of natural gas to be bought should be carefully determined considering a limited storage capacity and future pricing dynamics. In this work, the problem to find the optimal amount of natural gas in a spot market is formulated as a Markov decision process (MDP) in risk neutral environment and the optimal base stock policy which depends on a stage and price is established. Taking into account price and demand uncertainties, the basestock target levels are simply approximated from dynamic programming. The simulation results show that the basestock policy can be one of effective ways for procurement of LNG in a spot market.

• Proceedings of the Computational Structural Engineering Institute Conference
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• 2008.04a
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• pp.166-171
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• 2008

LNG carrier is a special-purpose vessel to transport natural gas (NG) from the place of origin to each consuming country. To increase the capacity of canying LNG carrier, the natural gas is conveyed as a state of liquid called LNG (Liquefied Natural Gas) during a voyage because the total volume of NG is surprisingly reduced when it is cooled down to $-162^{\circ}C$. That is why the design of insulation of the carriers is important to protect LNG from the external heat invasion, and it has been a great challenging subject for several decades in the shipbuilding industry. For this ultimate goal, the boil-off rate (BOR) needs to be accurately estimated during a voyage. Therefore, the goal of this study is to propose a numerical method for estimating the BOR of LNG for given insulation containment subject to external temperature conditions during voyage.

• Korean Journal of Air-Conditioning and Refrigeration Engineering
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• v.22 no.7
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• pp.442-447
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• 2010

FPSO (Floating Production Strorage and Offloading) method for LNG industry is efficient and facile compared to onshore NG (Natural Gas) treatment facility. Five simple natural gas liquefaction cycles for FPSO are presented and simulated in this paper. SMR (Single Mixed Refrigerant) cycle, SNE (Single Nitrogen Expander) cycle, DNE (Double Nitrogen Expander) cycle, PNE (Precooled Nitrogen Expander) cycle, and PDNE (Precooled Double Nitrogen Expander) cycle are compared. Simple analysis results in this paper show that precooling process and adding an expander in the liquefaction cycle is an effective way to increase liquefaction efficiency.

• IE interfaces
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• v.13 no.4
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• pp.658-667
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• 2000

Seasonal variation of natural gas demand coupled with rigid and stable import pattern of gas represents the characteristic feature of the Korean Liquified Natural Gas(LNG) industry. This attribute has required a huge amount of investment for the construction of storage facility. Thus, to minimize the supply cost, it is legitimate to reduce storage requirement itself. In this study, we combine three alternative methods to deal with the storage requirement to minimize the supply cost. Those are (1) adding additional storage tanks, (2) inducing large firm customers, and (3) constructing gas-turbine self generation facilities. Methodologically, we employ the mixed integer program (MIP) to optimize the system. The model also consider demand and price-setting scheme in separate modules. From the results, it is shown that if alternatives are combined optimally, a number of storage tanks can be reduced substantially compared with the original capacity plan set by the industry authorities. We perform various sensitivity analyses to check the robustness of the results. The methodology presented in this study can be applied to the other physical network industry, such as hydraulics. The empirical results will shed some light on the rationalization of capacity planning of the Korean natural gas industry.

• Journal of the Korean Institute of Gas
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• v.13 no.3
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• pp.54-60
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• 2009

The advancement of industry have increased domestic energy demands and energy facilities such as storage facility, compressed gas pipe, station, and tank lorry. Also, concern about environment have diversified energy source to clean energy such as LNG. In these major energy facilities, major accident can happen to result in fire, explosion, toxic release and etc. In addition, it may cause chain accidents to the adjacent energy facilities. In this research, safety assessment was performed through the consequence analysis of LPG liquefied petroleum gas) station, gasoline station and LNG(liquiefied natural gas) station. The obtained result will be helpful to make a safety guideline of the LPG/LNG station built adjacent to the gasoline station.

• Korean Chemical Engineering Research
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• v.62 no.1
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• pp.70-79
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• 2024

Raman analyzer is an analytical technique that utilizes the "Raman effect", which occurs when light is scattered by the inherent vibrations of molecules. It is used for molecular identification and composition analysis. In the natural gas industry, it is widely used in bunkering and tank lorry fields in addition to LNG export and import terminals. In this study, a LNG-specific Raman analyzer was installed and operated under actual field conditions to analyze the composition and principal properties (calorific value, reference density, etc.) of LNG. The measured LNG composition and calorific value were compared with those obtained by conventional gas chromatograph that are currently in operation and validated. The test results showed that the Raman analyzer provided rapid and stable measurements of LNG composition and calorific value. When comparing the calorific value, which serves as the basis for LNG transactions, with the results from conventional gas chromatograph, the Raman analyzer met the acceptable error criteria. Furthermore, the measurement results obtained in this study satisfied the accuracy criteria of relevant international standards (ASTM D7940-14) and demonstrated similar outcomes compared to large-scale international demonstration cases.

• Journal of Energy Engineering
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• v.29 no.1
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• pp.13-24
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• 2020

Many countries are actively engaging in the reduction of greenhouse gas emissions, and as part of this effort, gradually reducing the portion of coal power generation and instead increasing the portion of power generations from renewable energy sources and natural gas. Korea is taking a similar policy to expand LNG power generation for the next decade. There is a concern, though, about the policy not being aligned with the domestic industry development, since only a few products are being made in Korea along the LNG power generation industry value chain. Therefore in this paper, we first looked at the current status of the gas turbine and high temperature parts industry used for LNG power generation in Korea, and then looked into the industrial issues and challenges through the analysis of supply chains of the domestic gas turbine industry. Finally, we tried to propose strategies to revitalize and localize the domestic gas turbine and high temperature parts industry. The proposed strategies can be summarized as 1) creation of domestic gas turbine manufacturing ecosystem via construction of gas turbine alliance, 2) strategic R&D support for localization of gas turbine and high temperature parts, and 3) provision of domestic testbeds for technology evaluation and commercialization.

• Journal of Advanced Marine Engineering and Technology
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• v.39 no.2
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• pp.195-200
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• 2015

It is envisaged that the effect of increasingly stricter air emissions legislation implemented through IMO Annex VI and other local air quality controls, together with favorable financial conditions for the use of natural gas instead of liquid fuel oil as a bunker fuel, will see an increasing number of DF engine and single gas fuel engine applications to LNG carriers and other vessel types. As part of provision for the current international movements in the shipping industry to reduce GHG emission in air, new design concepts using natural gas as an alternative fuel source for propulsion of large commercial vessels, have been developed by shipyards and research institutes. In this study, an explosion analysis for a gas supply machinery room of LNG-fuelled container ship is presented. The gas fuel concept is employed for the high pressure ME-GI where a leakage in the natural gas double supply pipe to the engines is the subject of the present analysis. The consequences of a leak are simulated with computational fluid dynamics (CFD) tools to predict typical leak scenarios, gas cloud sizes and possible explosion pressures. In addition, capacity of the structure which is subject to explosion loads has been assessed.

• Analyses & Alternatives
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• v.5 no.2
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• pp.77-105
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• 2021

Natural gas consumption in Asia is growing at fast tempo because of various factors such as economic growth in the region, urbanization, coal-to-gas switch at power and industry sector. Due to geographical characteristics and lack of international pipeline connections between countries in the continent, majority of natural gas exported to Asian consumers is transported by tankers on the sea in the form of liquefied natural gas. As Asian market is the most lucrative market with the fastest demand growth, the competitions between LNG sellers for market share in Asian market are strengthening. The competitions accelerated, especially after the introduction of large volume of incremental supply into the market by new exporters from the U.S., Australia, and Russia. Cheniere Energy, the first exporter of liquefied natural gas (LNG) in the lower 48 states of U.S. has not adopted the traditional price formation mechanism and business model. Traditionally, prices of long-term LNG contracts have been indexed to the price of competing fuels, such as crude oil. The company adopted a pricing mechanism and business model based on a cost-plus system. Cheniere Energy opted for the safer and the risk-free pricing system, that annually guarantees a fixed amount of revenue to the seller. The company earns the same amount of money, regardless of natural gas price dynamics in the domestic and international market, but possibly with less revenue. However, by introducing and successfully implementing the safer and risk- free business model, Cheniere Energy, a company of a relatively smaller size in comparison with major oil and gas companies, became an example to other smaller-sized companies in the U.S. The company's business model demonstrated how to enter and operate LNG business amid increasing competitions among sellers in the U.S. and international market.

• Environmental and Resource Economics Review
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• v.11 no.2
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• pp.211-231
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• 2002

This paper summarizes the results of a study that assess how a demand side management (DSM) system addresses key economic and environmental challenges facing in the Korean natural gas sector considering; ${\bullet}$ high discrepancies of seasonal consumption volume and of load factor in unmatured domestic LNG market, ${\bullet}$ unfavorable and volatile international LNG market, imposing with the contestable "take-or-pay" contract terms, ${\bullet}$ low profile of LNG and existence of market barriers against an optimal fuel mix status in the industrial energy sector. A particular focus of this study is to establish an 'extended' DSM system in the unmatured gas market, especially in industry sector, that could play a key role to assure an optimum fuel mix scheme. Under the concept of 'extended' DSM, a system dynamics modeling approach has been introduced to explore the option to maximize economic benefits in terms of the national energy system optimization, entailing different ways of commitments accounting for different DSM measures and time delay scenarios. The study concludes that policy options exist that can reduce inefficiencies in gas industry and end-use system at no net costs to national economy. The most scenarios find that, by the year 2015, it is possible to develop a substantial potential of increased industrial gas end-uses under more reliable and stable load patterns. Assessment of sensitivity analysis suggests that time delay factor, in formulating DSM scenarios, plays a key role to overcome various market barriers in domestic LNG market and provides a strong justification for the policy portfolios 'just in time' (time accurateness), which eventually contribute to establish an optimum fuel mix strategy. The study indicates also the needs of advanced studies based on SD approach to articulate uncertainty in unmatured energy market analysis, including gas.