Download - Transport of Light Gases Blended with LNG
Transport of LightGases Blended with LNG
LNG TransportIndustry Summary
LNG Production Worldwide
LNG supply by year: 2005 to 2013
Supply by country: 2013 YOY
Markets: 2013 YOY
• LNG Tankers – Plentiful, Many Sizes
• LNG Sources – Growing Number
• LNG Receiving – Slowly Growing Number
• Limited Excess Capacity
– Oversupply in 2008 has virtually disappeared
– Lower gas cost has seen increase in LNG transport by about 40% since 2008
– US Gas Supply Increasing Promising Substantial LNG Exports within a decade
Shipping LNG: Supply & Demand
• 226 ships built through 2006• 163 ships built in 2007 through 2013• 46 ships planned for delivery in 2014 or later
Growing Industry & Transport Capacity
LNG Value Chain
• Transport of Natural Gas costs about $3.50/MSCF using LNG from source to
destination (5000 km)
• Natural Gas sells for about $4 to $16/MSCF ($200 to $800/tonne)
• Natural Gas can be bought for $1 to $4/MSCF
• Profit highest transporting to Far East from Middle East
Cost of Transporting LNG
Established LNG Sea Links
Qatar Gas -Major LNG Source
LNG TransportEquipment
LNG Storage
LNG Terminals
LNG Terminals
The LNG Transport Cycle
Blended LNG Transport of Valuable Gases:Ethylene, Ethane, Propylene
• Traditionally made from Ethane and Naphtha Cracking
– Ethane reserves are falling except in USA
– Ethane Uneconomical for Shipping as Gas
• Naphtha easily shipped to Manufacturers (has destination value)
• All Major Future Ethylene Production Growth in Africa, Middle East and Far East
Ethylene: Prime Raw Material for Chemicals
Ethylene Production
Chemical Production needs Raw Materials
• Synfuels GTE makes Ethylene from Low Cost Natural Gas Economically
• GTE Ethylene market needs:
– Local Chemical Industry
– Mode of Transport to Traditional Market
Potential New Ethylene Technology
• Methane - $200 to $800/tonne
• Ethylene - $1100 to $1600/tonne
• Propylene – $1600 to $2000/tonne
Destination Value of Gases
Cryogenic Separation of Ethylene from
LNG
Chemicals made from Ethylene
Ethylene Transport Using LNG
Few Changes to Existing LNG Facilities are Needed
• LNG Gasification Facilities Gasify LNG and Deliver Natural gas to Pipelines
• Ethylene/LNG Gasification Facility will Separate Ethylene from Methane
– Deliver Natural Gas to Natural Gas Pipeline
– Deliver Ethylene to Ethylene Pipeline
Handling Ethylene/LNG Blend
• Pipeline from Ethylene source to LNG Liquifaction Plant
• Cross exchanger for Ethylene/LNG
• Pumps to Move Blend to Storage Tank
• Optional Separate Storage Tank for Cryogenic Blend
Liquifaction Equipment Additions are Minimal
• Cryogenic Tower to Separate Ethylene from Natural Gas
• Cold Box Condenser
• Fin-Fan Air-heated Reboiler
• Ethylene Pipeline Extension at Destination
Gasification Equipment Additions are Minimal
o Ship Size – 138,000 cu meterso 58320 tonnes displacement*
100% Methane $ 35.0 Million
75 wt% Ethylene $ 63.4 Million
75 wt% Propylene $ 95.1 Million
• All examples above for equal displacement shipping from USA to Japan
• Cost to manufacture ethylene and propylene set at $350/tonne
Example Case - Load Value
• LNG shipping capacity – 60 Million cubic meters ( 25.4 Million Tonnes)
• LNG annual transport – 562 Million cubic meters (237.7 Million Tonnes)
• Worldwide Ethylene Production – 143.4 million tons per year
(252 Million cubic meters)
Market Opportunity is Enormous
ETHYLENE-LNGCROSS-EXCHANGER
REFRIGERATION(EXISTING)
Ethylene
LNG(EXISTING)
LIQUID
LIQUID
ETHYLENE VAPOR
ETHYLENELIQUID
LIQUID ETHYLENEPUMP
LIQUIDBLENDER
VAPOR
ETHYLENE/LNGLIQUID
ETHYLENE/ LNGSTORAGE(EXISTING)
LiquidTransfer
Pump(Existing)
LNG TRANSPORT
EXISTING
GAS LIQUIFICATION (SOURCE)
Process Description
LNG TRANSPORTOFFLOADING
PUMP(EXISTING)
METHANE – ETHYLENECRYOGENIC SEPARATOR
FIN-FANREBOILER
REFRIGERATEDCONDENSOR
ETHYLENEGASIFIER
(EXISTING)
ETHYLENE-LNGLIQUID MIX
METHANE VAPOR METHANE PIPELINE(EXISTING)
ETHYLENE PIPELINE(EXISTING)
EXISTING
LIQUID GASIFICATION (DESTINATION)
Process Description
1. Bring ethylene by pipeline to site of existing LNG Liquefaction Plant
2. Cool and liquefy the ethylene with existing LNG refrigeration
3. Load the ethylene and LNG separately on a slightly modified LNG tanker
4. Unload the ethylene at the ethylene receiving site
5. Unload the LNG at the LNG receiving site
Opportunity A (Add Synergy to Close Ethylene and LNG plants)
1. Load some LNG onto LNG Tanker from LNG production site
2. Move ship to distantethylene production site and load refrigerated ethylene into
separate LNG cooled storage
3. Unload the ethylene at the ethylene receiving site
4. Unload the LNG at the LNG receiving site
Opportunity B (Utilize far apart LNG and ethylene plants)
1. Bring ethylene by pipeline to site of existing LNG Liquifaction Plant
2. Cool and liquify the ethylene with existing LNG refrigeration
3. Blend the ethylene with LNG and ship in existing LNG tanker
4. Separate blend at receiving site
Opportunity C (Simplify Transport through Blending)
Potential GTE/LNG SitesCo-Locations of Ethylene production and LNG Loading (Blue) and Receiving (Green)