Editorial comment

A. Blume, Managing Editor

Small-scale gas processing operations are ramping up around the world, particularly in the LNG sector. New LNG import terminals are opening in Europe and Asia as cost-effective, efficient processing technologies are taking hold in the market. For example, Spain is using LNG produced on a small scale for bunkering, while Finland recently opened the first of several planned small-scale LNG import terminals.

According to a report released earlier this year by Visiongain, the small-scale LNG market could see capital expenditures of $2.5 B in 2016. CAPEX for small-scale gas processing is forecast to increase over the following years in both mature and emerging markets.

The growing popularity of flexible, less-expensive, small-scale LNG and GTL processing technologies is being driven by the need for more localized supplies to meet specialized demand, as well as the desire to capitalize on small and stranded gas reserves. In most cases, these technologies also offer shortened construction timelines. New projects will meet the need for distributed power and fuel for road and marine transport, filling the gaps left by gas pipelines and tanker deliveries.

A number of small-scale processing technologies are available from specialized startup companies, as well as from major oil and gas technology firms. Many of these companies have seen major progress on commercial installations in recent years. These developments, which offer promising supply alternatives in today's difficult market and into the future, are detailed in this issue's Special Report, Executive Viewpoint and Regional Perspectives articles. GP