I remember seeing blue skies and clouds while hiking the Great Wall and overlooking the Bund while visiting China during 2010. However, during the last decade having lived and worked in multiple cities throughout China it was seldom that I was able to see blue skies and clouds as I walked or biked to work. While in Shanghai in 2014, I remember reading in the China Daily bold headlines about China’s “war on pollution”. In the back of my mind I wondered how China would execute such an ambitious plan.
As the Chinese government started cracking down on pollution, coal-fired power plants were told to reduce their emissions and coal boilers used for heat in many homes and businesses were removed. The solution is an alternative source of energy – natural gas. Natural gas is said to emit 45% less CO2 than coal and even 30% less than oil. According to the International Energy Agency, they believe by 2040 it will be the second-largest fuel in the mix, right behind oil. LNG will account for a quarter of the world’s global energy demand. Driving this growth in demand comes from developing countries such as China, India and other Asian countries. These countries are projected to make up 80% of the demand for LNG by 2040.
When it comes to logistics and transportation, traditional methods of moving natural gas is by pipe and LNG carriers, however most require major infrastructure investments and don’t solve short term demand requirements. Alternatives such as 40FT ISO tanks are now becoming viable as demand for LNG has led to shortages in coastal cities in China during winter months. In order to get natural gas shipped in a liquid state, the gas needs to be cooled at about -260° Fahrenheit for shipping and storage. The volume of natural gas in its liquid state is about 600 times smaller than its volume in its gaseous state. Each ISO Tank carries a max 11,491 gallons of liquid natural gas sustainable in a tank for up to 90 days.
At JUSDA Supply Chain Management, we’re excited to be at the forefront of handling the logistics in exporting LNG into China and bringing back blue skies! We are creating partnerships and awareness in the industry on how to best handle LNG ISO tank shipments. Our control tower group is utilizing both hardware and software to monitor each ISO tank 24/7/365 to determine risk and ensure end to end supply chain visibility. As the LNG market continues to grow, follow our story as we help create blue skies one ISO tank at a time.