Reducing the Economic Risk of LNG Tank Construction under Conditions of Fluctuating Resource Prices
Publication: Journal of Construction Engineering and Management
Volume 137, Issue 5
Abstract
Fluctuating resource prices affect the costs of the materials used in the construction of LNG (liquid natural gas) tanks. In this paper, methods based on the field experience of the writers for the reduction of the cost of LNG tanks in general and in-ground LNG tanks in particular are discussed. Of the various components of the construction cost, the price of steel materials is a significant contributor. Using a newly defined cost impact index, the costs of construction of different types of LNG tanks are compared. Further, by considering actual examples of the construction of in-ground tanks, important issues relating to the use of steel materials are identified and, by using a cost reduction index, recommendations are made for the reduction of the cost risk during fluctuations in resource prices.
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Acknowledgments
This paper compiles the findings of a study by the writers of cost risk reduction for the construction of LNG tanks that was triggered by the actual fluctuations beyond normal expectations of resource prices during our involvement in the construction of in-ground tanks since 1982 and above-ground tanks since 2006. The writers would like to express their utmost gratitude to the members of Shizuoka Gas and Shimizu LNG for their kind guidance and assistance.
References
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Nakano, M. (2001). “Technological trend and latest technological development of LNG inground storage tanks.” J. Construction Management and Engineering (Japan Society of Civil Engineers), 679(51), 1–20.
Nishizaki, T., Okai, D., Chikamatsu, R., Okudate, M., and Kamata, M. (2003). “Rationalization study on construction techniques of prestressed concrete outer tank for LNG storage and evaluation on practical application.” J. Construction Management and Engineering (Japan Society of Civil Engineers), 728(58), 141–156.
Sone, H., Kasai, T., and Akaishi, M. (1999). “A consideration in countermeasure on reduction of road construction cost.” Proc., School of Engineering, Tokai University, 39(1), 165–169.
The Asahi Shimbun. (2008). “The great recession.” Oct. 24, p. 14 (in Japanese).
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 137 • Issue 5 • May 2011
Pages: 382 - 391
Copyright
© 2011 American Society of Civil Engineers.
History
Received: Dec 20, 2009
Accepted: Oct 6, 2010
Published online: Oct 19, 2010
Published in print: May 1, 2011
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