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LNG Technology
By Laura Donnelly
Energy Technology and Policy
November 25, 2008
Capital and Operating Costs
of LNG ‘chain’
Exploration & Treatment & Shipping Storage & Distribution
Production Liquifaction Regasification & Marketing
15-20% 30-45% 10-30% 15-25%
LIQUEFACTION
• Cool Gas to -260oF
• 1/600th
of gaseous volume
• 30-45% LNG ‘chain’ costs
• Costs driven by:
– Train number and capacity
– Compressor drive efficiency
• New Technology: Offshore Production
Darwin Liquefaction Facility
http://content.edgar-online.com/edgar_conv_img/2007/03/30/0000950152-07-
002894_L25400AL2540013.JPG
Train Size
• Train capacity has grown an average of 3
million tons/year
• Facilities with capacities of 7.8 and 9.6 million
tons/yr will come on stream soon (Qatar and
Russia)
• Increasing train capacity, as opposed to # of
trains, can reduce costs by 25%
Compressor Drive Efficiency
• Gas Turbine Improvements
– Increase in efficiency from 28% to 40% in last 40yrs
– Decrease in fuel consumption (i.e. cost) by 60-70%
• Aeroderivative Turbines
– Advantages: increase thermal efficiency by 25% and total plant
efficiency by 3%, less downtime to replace
– Disadvantages: expensive, high maintenance
– Currently, industrial gas turbines are used to drive the
compressors
• Electric Drive Alternative
– Use of smaller turbines in a combine cycle power plant to
produce electricity to run liquefaction plant
– Improve efficiency, cut emissions
Offshore
Liquefaction
Floating Production Storage
and Offloading (FPSO)
http://braxtonlng.com/LNGFPSOs.aspx
TRANSPORTATION
• LNG shipped in large vessels with cryogenic
tanks
• 10-30% LNG ‘chain’ costs
• Costs driven by:
– Vessel capacity
– Tanker Propulsion
• New Technology: Ship-to-Ship Transfer (STS)
Vessel Capacity
• First LNG tankers: 27,400 cubic meters (cu m)
• In 2007, vessels averaged 266,000 cu m
• Decrease in costs by 45% from early 1990’s
due to increase in vessel capacity
• Limitations: restrictions on import vessel size,
maximum capacity of regasification
equipment
Tanker Propulsion
• Boil-off gas (~0.15%/day)
– Vent to atmosphere
– Burned
– Reliquefied
• Three Propulsion Options:
1. Steam Turbine
2. Dual-fuel diesel engine (DFDE)
3. Heavy fuel diesel engine
Tanker Propulsion
• Boil-off gas (~0.15%/day)
– Vent to atmosphere
– Burned
– Reliquefied
• Three Propulsion Options:
1. Steam Turbine
2. Dual-fuel diesel engine (DFDE)
3. Heavy fuel diesel engine
Tanker Propulsion
• Boil-off gas (~0.15%/day)
– Vent to atmosphere
– Burned
– Reliquefied
• Three Propulsion Options:
1. Steam Turbine
2. Dual-fuel diesel engine (DFDE)
3. Heavy fuel diesel engine
Tanker Propulsion
• Boil-off gas (~0.15%/day)
– Vent to atmosphere
– Burned
– Reliquefied
• Three Propulsion Options:
1. Steam Turbine
2. Dual-fuel diesel engine (DFDE)
3. Heavy fuel diesel engine
Ship-to-Ship Transfer
• Emergence of Offshore regasification and liquefaction
• New vessels may now have capability to transfer or
receive loads
http://www.thedigitalship.com/powerpoints/norship05/lng/Trym%20Tveitnes,%20HOEGH.pdf
REGASIFICATION
• Facility costs can range from $100 million for a
small plant to $2 billion for state-of-the-art
‘greenfield’ plant (usually found in Japan)
• Costs driven by
– Storage
– Gas Composition Control
• New Technology: Offshore Regasification
Storage
• 1/3 plant capital costs
• Storage capacity dictates volume of gas plant can
handle
• Can usually only process 70-75% capacity load
• Increasing storage can increased capital costs 10-20%
EIA, Global LNG Status and Outlook 2003
Composition Control
• Composition of gas delivered to regasification plant
can vary significantly depending on source
• Compounds, such as propane, butane and ethane, can
often be left in the LNG in order to reduce liquefaction
costs
• These compounds raise the heating value (HHV) of the
gas, which many countries do not have the
infrastructure or equipment to handle, the US included
• Industrial equipment accounts for 60% of natural gas
use, and is typically the most sensitive to natural gas
quality
Composition Control
• Technologies to reduce the HHV
– Injection of inert gas (usually Nitrogen) into vaporized gas
• Can increase end-user NOx emissions
• Restrictions placed on amount of inert gas that can be present
in fuel
• Increase in capital and operating expenditures to run injection
process, with no increase in value of fuel
– Natural Gas Liquids Recovery (NGLR)
• Remove the mid-range (propane, butane, ethane) compounds
before or after regasification
• Profit from petrochemical sales > profit from high HHV when
present in gas
Offshore Regasification
• US to build two Offshore plants, one already under
construction
• Floating Storage and Regasification Unit (FSRU)
Conclusions
• To keep the LNG market growing and meet
increasing natural gas demands, it is most important
for future technology to address:
– Compressor Efficiency
– Ship-to-Ship transfer
– Offshore Regasification
• Increasing cost effectiveness will allow companies to
produce gas in harsher environments to help meet
demands (deep sea, artic conditions)
Questions?
US Natural Gas Imports Projected to 2030
(Pipeline vs. LNG)
Energy Information Administration, Annual Energy Outlook 2006
LNG demand as of 2003
Source: Gas Techology Institute, IEA 2003 Natural Gas Information
LNG Demand in 2025
EIA International Energy Outlook 2004
Why is demand increasing?
• Increased installation of Combine Cycle power
plants for increased efficiencies
• Environmental concerns: Natural gas is
‘cleaner’ than petroleum and coal
• Worries over the abundance of conventional
fuel supplies: natural gas reserves to last 30yrs
longer than oil
Wartsila Diesel, 2008
Liquefaction Terminals
Wartsila Diesel, 2008
Regasification Terminals
Regasification Plant in Sabine, TX
to receive LNG from Qatar (2009)
ExxonMobile Corporation: Form 8-K, current report
Federal Energy Regulatory Commission

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242340282-lng-tech-2-ppt.pptx présentation de technologies

  • 1. LNG Technology By Laura Donnelly Energy Technology and Policy November 25, 2008
  • 2. Capital and Operating Costs of LNG ‘chain’ Exploration & Treatment & Shipping Storage & Distribution Production Liquifaction Regasification & Marketing 15-20% 30-45% 10-30% 15-25%
  • 3. LIQUEFACTION • Cool Gas to -260oF • 1/600th of gaseous volume • 30-45% LNG ‘chain’ costs • Costs driven by: – Train number and capacity – Compressor drive efficiency • New Technology: Offshore Production Darwin Liquefaction Facility http://content.edgar-online.com/edgar_conv_img/2007/03/30/0000950152-07- 002894_L25400AL2540013.JPG
  • 4. Train Size • Train capacity has grown an average of 3 million tons/year • Facilities with capacities of 7.8 and 9.6 million tons/yr will come on stream soon (Qatar and Russia) • Increasing train capacity, as opposed to # of trains, can reduce costs by 25%
  • 5. Compressor Drive Efficiency • Gas Turbine Improvements – Increase in efficiency from 28% to 40% in last 40yrs – Decrease in fuel consumption (i.e. cost) by 60-70% • Aeroderivative Turbines – Advantages: increase thermal efficiency by 25% and total plant efficiency by 3%, less downtime to replace – Disadvantages: expensive, high maintenance – Currently, industrial gas turbines are used to drive the compressors • Electric Drive Alternative – Use of smaller turbines in a combine cycle power plant to produce electricity to run liquefaction plant – Improve efficiency, cut emissions
  • 6. Offshore Liquefaction Floating Production Storage and Offloading (FPSO) http://braxtonlng.com/LNGFPSOs.aspx
  • 7. TRANSPORTATION • LNG shipped in large vessels with cryogenic tanks • 10-30% LNG ‘chain’ costs • Costs driven by: – Vessel capacity – Tanker Propulsion • New Technology: Ship-to-Ship Transfer (STS)
  • 8. Vessel Capacity • First LNG tankers: 27,400 cubic meters (cu m) • In 2007, vessels averaged 266,000 cu m • Decrease in costs by 45% from early 1990’s due to increase in vessel capacity • Limitations: restrictions on import vessel size, maximum capacity of regasification equipment
  • 9. Tanker Propulsion • Boil-off gas (~0.15%/day) – Vent to atmosphere – Burned – Reliquefied • Three Propulsion Options: 1. Steam Turbine 2. Dual-fuel diesel engine (DFDE) 3. Heavy fuel diesel engine
  • 10. Tanker Propulsion • Boil-off gas (~0.15%/day) – Vent to atmosphere – Burned – Reliquefied • Three Propulsion Options: 1. Steam Turbine 2. Dual-fuel diesel engine (DFDE) 3. Heavy fuel diesel engine
  • 11. Tanker Propulsion • Boil-off gas (~0.15%/day) – Vent to atmosphere – Burned – Reliquefied • Three Propulsion Options: 1. Steam Turbine 2. Dual-fuel diesel engine (DFDE) 3. Heavy fuel diesel engine
  • 12. Tanker Propulsion • Boil-off gas (~0.15%/day) – Vent to atmosphere – Burned – Reliquefied • Three Propulsion Options: 1. Steam Turbine 2. Dual-fuel diesel engine (DFDE) 3. Heavy fuel diesel engine
  • 13. Ship-to-Ship Transfer • Emergence of Offshore regasification and liquefaction • New vessels may now have capability to transfer or receive loads http://www.thedigitalship.com/powerpoints/norship05/lng/Trym%20Tveitnes,%20HOEGH.pdf
  • 14. REGASIFICATION • Facility costs can range from $100 million for a small plant to $2 billion for state-of-the-art ‘greenfield’ plant (usually found in Japan) • Costs driven by – Storage – Gas Composition Control • New Technology: Offshore Regasification
  • 15. Storage • 1/3 plant capital costs • Storage capacity dictates volume of gas plant can handle • Can usually only process 70-75% capacity load • Increasing storage can increased capital costs 10-20% EIA, Global LNG Status and Outlook 2003
  • 16. Composition Control • Composition of gas delivered to regasification plant can vary significantly depending on source • Compounds, such as propane, butane and ethane, can often be left in the LNG in order to reduce liquefaction costs • These compounds raise the heating value (HHV) of the gas, which many countries do not have the infrastructure or equipment to handle, the US included • Industrial equipment accounts for 60% of natural gas use, and is typically the most sensitive to natural gas quality
  • 17. Composition Control • Technologies to reduce the HHV – Injection of inert gas (usually Nitrogen) into vaporized gas • Can increase end-user NOx emissions • Restrictions placed on amount of inert gas that can be present in fuel • Increase in capital and operating expenditures to run injection process, with no increase in value of fuel – Natural Gas Liquids Recovery (NGLR) • Remove the mid-range (propane, butane, ethane) compounds before or after regasification • Profit from petrochemical sales > profit from high HHV when present in gas
  • 18. Offshore Regasification • US to build two Offshore plants, one already under construction • Floating Storage and Regasification Unit (FSRU)
  • 19. Conclusions • To keep the LNG market growing and meet increasing natural gas demands, it is most important for future technology to address: – Compressor Efficiency – Ship-to-Ship transfer – Offshore Regasification • Increasing cost effectiveness will allow companies to produce gas in harsher environments to help meet demands (deep sea, artic conditions)
  • 21. US Natural Gas Imports Projected to 2030 (Pipeline vs. LNG) Energy Information Administration, Annual Energy Outlook 2006
  • 22. LNG demand as of 2003 Source: Gas Techology Institute, IEA 2003 Natural Gas Information
  • 23. LNG Demand in 2025 EIA International Energy Outlook 2004
  • 24. Why is demand increasing? • Increased installation of Combine Cycle power plants for increased efficiencies • Environmental concerns: Natural gas is ‘cleaner’ than petroleum and coal • Worries over the abundance of conventional fuel supplies: natural gas reserves to last 30yrs longer than oil
  • 27. Regasification Plant in Sabine, TX to receive LNG from Qatar (2009) ExxonMobile Corporation: Form 8-K, current report

Editor's Notes

  • #5: Liquefaction requires significant compression to liquefy the gas Large turbines are hard to manufacture and are expensive
  • #9: Talk about all three
  • #10: Talk about all three
  • #11: Talk about all three
  • #12: Talk about all three
  • #23: US only has 4% of gas supplies Russia, Qatar and Iran have more than half of global reserves Therefore, importation in inevitable