LNG Technology

Natural Gas Utilization

• Distribution by Pipeline• Liquefaction and Regasification• Compressed gas (CNG)

or• Conversion to Liquid Hydrocarbons• Conversion to Methanol• Conversion to Fertilizer• Conversion to Electric Power

The Hydrocarbon Trend

Hydrocarbon Ratio of Primary Energy

0

12

3

4

1700 1800 1900 2000 2100

Century

H/C

Relative Costs of Gas Transportation

$0.00$1.00$2.00$3.00$4.00$5.00

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

MILES

$/M

MB

TU

Offshore Pipeline Onshore Pipeline LNG

Pipeline vs. LNG

How not to transport gas !!

LNG Technology

Typical Natural Gas Composition

Typical Composition at Inlet of LNG Plant1.0 - 2.0 % Nitrogen

85.0 - 95.0 % Methane

5.0 - 10.0 % Ethane - - Feedstock for Ethylene

2.0 - 5.0 % Propane

2.0 - 3.0 % Total Butane+

1.0 - 4.0 % Carbon Dioxide

Trace: H2S, Hg, R-SH, COS

LPGPetrochemical

Feedstock

LNG

Liquefied Natural Gas

- 161oC !!

Typical LNG Product Specifications

Component Limits (maximum)• Carbon Dioxide 50 ppm• Mercury 0.01 micrograms per normal m3

• Nitrogen 1 mol%• Water Vapor 1 ppmv• Benzene 1 ppmv• Ethane < 6 – 8 mol% (Feedstock for Ethylene!)

• Propane < 3 mol%• Butane < 2 mol%• Pentane and heavier < 0.1 mol%• High Heating Value =1050 Btu/SCF (Europe and USA)

up to 1140 Btu/SCF (East Asia)

LPGPetrochemical

Feedstock

LNG Train Capacities

Train capacities• Camel Plant, Algeria - 1964 - 0.4 MTPA

• Sonatrach LNG, Algeria - 1970’s - 1.0 - 1.4 MTPA

• Malaysia LNG (Satu), Bintulu - 1983 - 2.6 MTPA

• Bontang LNG Trains - 1980’s-90’s - 1.6-3.0 MTPA

• Woodside LNG - 1980’s-90’s - 2.2 - 4.2 MTPA

• SEGAS LNG - 2004 - 5.0 MTPA

• Qatargas LNG, Qatar - 2007 - 7.8 MTPA

• Future Trains - - - - - 2010 - 9.0 MTPA

TYPICAL BLOCK DIAGRAM - LIQUEFACTION

CO2REMOVAL

DEHYDRATION & MERCURY

REMOVALCHILLING LIQUEFACTION NITROGEN

REJECTION

REFRIGERATION SYSTEM

REFRIGERATION SYSTEM

OFFSITE LNG

STORAGE

HYDROCARBON FRACTIONATION

NATURALGAS

FEED

C2 FUEL

FUEL

LNG

C3

C4

BY PRODUCT GASOLINE

C4C2

Typical Acid Gas Removal Scheme

StripperStripper

LowLow--Pressure Pressure FlashFlash

ReboilerReboiler

RefluxRefluxCondenserCondenser

Acid GasAcid Gas

Lean AmineLean Amine

Bulk Bulk AbsorberAbsorber

Lean Lean AbsorberAbsorber

Treated GasTreated Gas

SemiSemi--Lean Lean AmineAmine Amine Amine

CoolerCooler

Rich AmineRich Amine

Sour GasSour GasSour GasSour GasFlash GasFlash Gas

HighHigh--Pressure Pressure

FlashFlash

Lean/Rich Lean/Rich ExchangerExchanger

Typical Dehydration Scheme Process Flow

Water Water Saturated Saturated Natural Natural

GasGas

WaterWater

Drier Drier PrecoolerPrecooler

Hydrocarbon Hydrocarbon LiquidLiquid

Regeneration Regeneration Gas CompressorGas Compressor

Regeneration Regeneration CoolerCooler

Regeneration Gas Regeneration Gas Knockout DrumKnockout Drum

Dry Gas To Dry Gas To LiquefactionLiquefaction

Regeneration Regeneration HeaterHeater

FilterFilter

Driers Driers (ABS)(ABS)

Driers Driers (Regen)(Regen)

Typical Mercury Removal Scheme Process Flow

Mercury Mercury Removal Removal ColumnColumn

To Liquefaction SectionTo Liquefaction Section

From Acid Gas Removal SectionFrom Acid Gas Removal Section

Outlet GasSpecification is

generally 10 nanograms of

Mercury per cubicmeter of gas.

Removal of Trace Mercury Contaminants

Mercury has to be removed from natural gas and its associated condensate to prevent:

• corrosion in aluminum equipment

Removal of mercury in the gas phase is by:Removal of mercury in the gas phase is by:adsorption on sulfur impregnated carbon or alumina adsorption on sulfur impregnated carbon or alumina carriercarriermolecular sievemolecular sieve

Refrigeration Cycles

Types of Licensed Processes:• Propane Precooled Mixed Refrigerant Cycle (APCI)• Pure Component Cascade Cycle

– Phillips Optimized Cascade

• Dual Mixed Refrigerant Cycle– Technip & Snamprogetti

• Single Mixed Refrigerant Cycle– PRICO

• Linde Technology

8/19/2010 P. 19

Basic Refrigeration Basic Refrigeration -- Simple PFDSimple PFD(Process Flow Diagram)(Process Flow Diagram)

Q Q High TemperatureHigh Temperature(Ambient)(Ambient)

Q Q Low TemperatureLow Temperature(Sub - Ambient)

CondenserCondenser

Suction Drum

CompressorCompressor

Heat ExchangerJ-T Valve

Accumulator

WorkWork Air-cooled or water-cooled

Refrigeration Loop

Propane Precooled Mixed Refrigerant CyclePropane Precooled Mixed Refrigerant Cycle

Pure propane refrigerant cyclePure propane refrigerant cycleAmbient to Ambient to --4040ooCCThree or four pressure levelsThree or four pressure levels

Mixed component refrigerant cycleMixed component refrigerant cycle--4040ooC to C to --160160ooCCTypical MCR Composition:Typical MCR Composition:

2 2 -- 10 % Nitrogen10 % Nitrogen35 35 -- 45 % Methane45 % Methane30 30 -- 45 % Ethane45 % Ethane10 10 -- 15 % Propane15 % Propane

8/19/2010 P. 21

Typical Propane Circuit Scheme Typical Propane Circuit Scheme Process FlowProcess Flow

PCPC

Feed from Feed from Acid Gas Acid Gas RemovalRemoval

SWSWTo MCHETo MCHE

Feed GasFeed GasTo Scrub To Scrub ColumnColumn

MRMR

SWSW

Reinjection Reinjection ChillerChiller

DC2 DC2 CondenserCondenser

8/19/2010 P. 22

DEHY/HgREMOVAL

MPC3

LPC3

TREATED FEEDGAS

HPC3

LLPC3

NRU

LOW BTUFUEL GAS

LNGRUNDOWN

To FRACTIONATION

LLPC3

HPC3

MPC3

LPG REINJECTION

HPMR

MPMR

MR LIQ EXP

LPMR

REFLUXDRUM

SCRUBCOLUMN

LNG EXP

MCHE

LPC3

DEHY/HgREMOVAL

MPC3

LPC3

TREATEDFEEDGAS

LLPC3

NRU

LOW BTUFUEL GAS

LNGRUNDOWN

To FRACTIONATION

LLPC3

MPC3

LPG REINJECTION

HPMR

MPMR

MR LIQ EXP

LPMR

REFLUXDRUM

SCRUBCOLUMN

LNGEXP

MCHE

LPC3

APCI C3/MCR ProcessAPCI C3/MCR Process

3

HPC

3

HPC

Thermal Efficiency

Compressor Driver Selection

• Economic driver selection possibilities:

– Steam Turbines

– Industrial Gas Turbines

– Aeroderivative Gas Turbines

– Electric Motors

P.

Typical LP MR Compressor

Axial Compressor Rotor Lifted From Casing

Propane Compressor driven by Frame 6 Gas Turbine

Frame 6 Gas TurbineFrame 6 Gas Turbine

Propane CompressorPropane Compressor

Frame 7CutawaySingle Shaft Design

PowerPowerTurbineTurbine

Air Air CompressorCompressor

Axial Axial CompressorCompressor

COIL WOUNDEXCHANGERCONSTRUCTION

P.

Main Cryogenic Heat Exchanger

(MCHE)

LNG Tank

Double Metal Wall LNG Storage Tank Design:

Carbon Steel

Perlite Insulation

Insulation

To Boiloff Gas Recovery

9% Ni Steel

LNG Rundown

Top FillBottom FillLNG to Ship

Heat Leak from

AmbientHeavy LNG

Light LNG

RV

Vapour

Release

32 month Construction

Schedule (Typical)

Double Double Containment Containment

TanksTanks

Full Full Containment Containment

TanksTanks

LNG Storage Tank Selection

Full Integrity Tank• For Spacing and Security Concerns

Malaysia LNG Storage Tanks

LNG ContractorsLiquefaction Plants

Top Tier• KBR/JGC• Chiyoda• Bechtel

Next Tier• Technip• Foster-Wheeler• Snamprogetti

LNG Shipping

P.

Typical LNG Ships

Shipping and Typical Ship Parameters

• Ship Size = 125,000 - 135,000 m3 nominal capacity• Design Speed = 18 - 20 knots• Boil-off rate = 0.15% of contents per day• Length = 300 m ; Breadth = 50 m• Draft = 11 m• Cost = $160 MM (highly dependent on market)• To ship 5 MMTPA a distance of 3500 miles,

approximately 6 x 135,000 m3 ships are needed

LNG Receiving Terminals

LNG Terminal Flow Diagram

LNG Tanker

LNG Unloading Arm

Vapor Return Line

Boil-Off Gas Compressor

LNG Storage Tanks

1st Stage SendoutPumps

Recondenser

2nd Stage Sendout Pumps

Fuel Gas

Vaporizer

To Pipeline

Open Rack Type

Features– Low running cost. Sea water used as heat source.– Easy to operate and maintain.– Tube Panels--made of aluminum alloy, coated outside with

zinc alloy to provide corrosion resistance from sea water.– Return sea water is 4-5 deg. C cooler. Environmental

consideration.

P.

Cove Point Terminal

LNG Projects in India

• Dahej LNG Terminal, Gujarat – Started up in Jan 2004

• Kochi LNG Terminal – 2.5 MM Tonnes/Yr capacity

• Hazira LNG Terminal, Gujarat is a JV of Shell and Total

• Ratnagiri LNG Terminal at Dabhol (Ex-Enron) will start shipping pipeline gas starting from 2010

• Many proposed LNG Terminals may be shelved due to competition from new gas finds/fields offshore in K-G Basin and Cauveri Basin

• New LNG Terminals and new pipeline construction will need to be developed in tandem.

1997 World LNG TradeMajor ProducersMajor Producers 83.8 83.8 Mmt/yMmt/y

Pacific RimPacific Rim 67.5%67.5%IndonesiaIndonesia 47.7%47.7%MalaysiaMalaysia 26.5%26.5%BruneiBrunei 11.0%11.0%Australia Australia 12.7%12.7%AlaskaAlaska 2.1%2.1%

Middle EastMiddle East 9.3%9.3%QatarQatar 28.2%28.2%Abu DhabiAbu Dhabi 71.8%71.8%

Atlantic BasinAtlantic Basin 23.2%23.2%AlgeriaAlgeria 94.9%94.9%LibyaLibya 5.1%5.1%TrinidadTrinidadNigeriaNigeria

1997 World LNG TradeMajor ConsumersMajor Consumers 83.8 83.8 Mmt/yMmt/y

Pacific RimPacific Rim 75.2%75.2%JapanJapan 76.4%76.4%TaiwanTaiwan 5.0%5.0%KoreaKorea 18.6%18.6%ChinaChinaIndiaIndia

Atlantic BasinAtlantic Basin 24.8%24.8%France France 33.2%33.2%BelgiumBelgium 16.8%16.8%GreeceGreeceItalyItaly 6.7%6.7%SpainSpain 24.0%24.0%TurkeyTurkey 11.1%11.1%USAUSA 8.2%8.2%

LNG Producing Countries

Operating LNG Plants1. Algeria2. Libya3. Egypt4. Nigeria5. Qatar6. Oman7. UAE8. Malaysia9. Brunei10. Indonesia11. Australia12. USA13. Trinidad

Plants Under Construction1. Nigeria2. Qatar3. Indonesia4. Australia5. Norway6. Russia7. Equatorial Guinea8. Trinidad9. Oman10. Yemen

Plants on the Drawing Board

1. Algeria

2. Egypt

3. Nigeria

4. Qatar

5. Australia

6. Russia

7. Angola

A Clear Picture of the Future

Floating LNG Chain

Gas distribution grid

FPSO for LNGon field location

Offshore LNG Transfer

to shuttle LNG carriers

FPSO Receiving Terminal

22,000 MT topsides

4,000 MT topsides

P.

Internal Turret & Risers Typical Service

Crane

Inlet Compressor

Knock Out Drums

Dehydration

Fractionation

Power Generation

Accommodations appr. 100 people

Pantograph LNG Unloading ArmAcid Gas

Solvent Regenerator

Main Cryogenic Heat Exchanger

Acid Gas Absorber

Refrig. Compressors

Flare

LNG FPSO

50

--Modularization LNG plant on a barge---BLUE MARTIN –

STAT OIL Norway

[154 METERS LONG AND 60 METERS WIDE AND 50 METERS HEIGHT-- 350,000 TONS ]

LNG Plant on a Ship

Source: “The LNG Business: How Fast Will it Grow?” By Theo Oerlemans, Poten& Partners, presented at Gastech 2005.

Questions - Discussion

Thank You