An Economical Boil-Off Gas Management System for LNG Refueling Stations: Evaluation Using Scenario Analysis

Hyun-Seung Kim and Churl-Hee Cho
Additional contact information
Hyun-Seung Kim: Korea National Oil Corporation, 305, Jongga-ro, Jung-gu, Ulsan 44538, Republic of Korea
Churl-Hee Cho: Graduate School of Energy Science and Technology, Chungnam National University, 99 Daehak-ro, Yuseong-gu, Daejeon 34134, Republic of Korea

Energies, 2022, vol. 15, issue 22, 1-14

Abstract: The use of liquefied natural gas (LNG) in the transportation sector is increasing, and boil-off gas (BOG) management systems are considered viable options to increase economic efficiency and reduce greenhouse gas emissions at LNG refueling stations. The present study proposed an economically optimized method by investigating four refueling station scenarios, including different BOG management systems. Among the four scenarios, the scenario in which compressed natural gas was produced from BOG had the lowest minimum selling price (MSP) and was the most economical. Sensitivity and uncertainty analyses were conducted for the economically optimal scenario, which identified the factors with the most influential impact and their uncertainties on the MSP. Finally, to determine the feasibility of the business through profitability analysis, the net present value, discounted payback period, and present value ratio due to changes in the discount rate were presented, and the discounted cash flow rate of return was found to be 13.22%. As a result of this study, a BOG management system can contribute to improving the economic feasibility for LNG refueling stations by reliquefying BOG and re-selling it (the most efficient way is scenario 4) and will provide an economical guide for countries with much demand for LNG in the transport sector.

Keywords: LNG refueling station; boil-off gas (BOG); BOG management systems; cost estimation; sensitivity analysis; probability analysis; economy evaluation; greenhouse gas (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/15/22/8526/pdf (application/pdf)
https://www.mdpi.com/1996-1073/15/22/8526/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:15:y:2022:i:22:p:8526-:d:972798

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().