lng value chain seminar

7/29/2019 Lng Value Chain Seminar

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Group- 3


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OUTLINE

What is LNG?

Is LNG a safe fuel?

The LNG value chain How much does LNG cost?

Conclusion


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DEFINATIONWhen natural gas is cooled to a temperature of

approximately -161 degree centigrade at atmosphericpressure , it condenses to liquefied natural gas (LNG)


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COMPOSITION


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Liquefaction process for LNG requires natural gas freefrom impurities like carbon dioxide, sulphurcompounds, water vapor ,mercury etc.


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NEED FOR LNG

The decision to commercialize a gas field by either LNG or direct pipelineis related to the distance to market from the gas reservoir. A rule of thumbcommonly followed states that LNG could be a viable option versuspipeline transport when the following characteristics are present: The gas market is more than 2,000 km from the field.

The gas field contains at least 3 tcf to 5 tcf of recoverable gas Gas production costs are less than $1/MMBtu, delivered to the

liquefaction plant. The gas contains minimal other impurities, such as CO2 or sulfur. A marine port where a liquefaction plant could be built is relatively

close to the field. The political situation in the country supports large-scale, long-term

investments. The market price in the importing country is sufficiently high to

support the entire chain and provide a competitive return to the gasexporting company and host country.

A pipeline alternative would require crossing uninvolved third-partycountries and the buyer is concerned about security of supply


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PROPERTIES

It is clear ,non corrosive ,non toxic ,cryogenic liquid atnormal atmospheric pressure.

It is odorless.

It is lighter than water( approx. half the density ofwater)

Specific volume: 600 times that of natural gas in thegaseous state.

Temperature range: (-) 160 to (-)168 degree centigrade. Flash point : -188 degree centigrade

Auto ignition temperature : >540 degree centigrade


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IS LNG A SAFE FUEL?

The industry is not withoutincidents but it has maintained anenviable safety record, especiallyover the last 40 years.

The few safety related incidentshave harmed the industrysperception by those outside of theindustry.

The experience of the LNG

industry demonstrates that normaloperating hazards are manageable.

LNG Incidents

1944 Cleveland Ohio. LNGpeakshaving plant. 128people died in adjoiningresidential area.

1973 Staten Island NY: LNGpeakshaving plant. 40maintenance workers dies

1979 Cove Point MD: LNGReceiving Terminal. 1operator died


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IS LNG SAFE FUEL ?Health hazards associated with LNG

Health hazards due to cryogenic temperature-LNG can

result in cryogenic burns from direct contact with thebody.

Exposure to LNG or direct contact with metal atcryogenic temperature can damage skin tissue more

rapidly than exposed to vapor. The metal not specifically designed for such ultra low

temperature can develop brittle failure when suchmetals comes in contact with LNG.


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LNG VALUE CHAIN

REGASIFICATION

& STORAGESHIPPINGLIQUEFACTION

EXPLORATION &

PRODUCTION

Sources: BG, ALNG, CMS


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LNG VALUE CHAIN

Natural gas is found in theearths crust.

Most of the time natural gas isdiscovered during the search foroil.

Worldwide proved reserves ofnatural gas about 6000 Tcf.

Much of this natural gas isstranded, a long way frommarket.

Production operations deliversthe gas to users.

Source: BGSource: BG

Exploration and Production


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LNG VALUE CHAIN

Natural gas is converted intoa liquid state.

The gas is cooled to LNGtemperature of -256oF. Thevolume reduce by a factor of600.

Liquefaction makes naturalgas more economical totransport.

Liquefaction

Source: ALNGSource: ALNG


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LNG VALUE CHAIN

LNG tankers are double-hulled ships speciallydesigned and insulated toprevent leakage or rupture

in an accident. LNG is a cryogenic liquid

and it is stored in double-walled tanks atatmospheric pressure.

The LNG shipping marketis expanding.

Source: BGSource: BG

Number of LNG ships built 1965 - 2002

0

2

4

6

8

10

12

14

196 5 1 967 196 9 1 971 197 3 1 975 19 77 1979 19 81 1983 19 85 198 7 1 989 199 1 1 993 199 5 1 997 199 9 2 001

Ships

builteach

year

Source: LNGOneWorld

Shipping


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LNG VALUE CHAIN

At the receiving terminal the LNG ispumped into a double-walledstorage tank.

Vaporized by warming in acontrolled environment.

Vaporized gas is regulated forpressure and enters the U.S. naturalgas pipeline system.

Residential and commercial

consumers receive natural gas fordaily use from local gas utilities or inthe form of electricity.

Storage and Regasification

Source: CMS


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EXPLORATION &PRODUCTION LIQUEFACTION SHIPPING REGASIFICATION& STORAGE$0.5-$1.0/MMBtu $0.8-$1.20/MMBtu $0.4-$1.0/MMBtu $0.3-$0.5/MMBtu

LNG Value Chain

Sources: BG, ALNG, CMS

How Much Does LNG Cost?


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CONCLUSION

LNG technology makes natural gas availablethroughout the world.

It is important for citizens, industry andgovernment to develop and communicateappropriate understandings of relative risksassociated with LNG facilities and shipping.

Demand for LNG is growing.


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REFERENCE LNG an Indian scenario by BS Negi

LNG: Basics of Liquefied Natural Gas, 1st Ed,

Written byDr. Stanley Huang, Dr. Chen-Hwa Chiu,and Dr. Doug Elliot
http://www.utexas.edu/ce/petex/files/forms/huang.pdfhttp://www.utexas.edu/ce/petex/files/forms/chiu.pdfhttp://www.utexas.edu/ce/petex/files/forms/elliot.pdfhttp://www.utexas.edu/ce/petex/files/forms/elliot.pdfhttp://www.utexas.edu/ce/petex/files/forms/chiu.pdfhttp://www.utexas.edu/ce/petex/files/forms/chiu.pdfhttp://www.utexas.edu/ce/petex/files/forms/chiu.pdfhttp://www.utexas.edu/ce/petex/files/forms/chiu.pdfhttp://www.utexas.edu/ce/petex/files/forms/chiu.pdfhttp://www.utexas.edu/ce/petex/files/forms/huang.pdf


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THANK YOU

lng value chain seminar

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