small lng: china experiences wensheng lin · 2017-05-18 · small scale to large market strategies...
TRANSCRIPT
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Small Scale to large Market Strategies & Technologies towards the Mediterranean Area
Small LNG: China Experiences
Wensheng Lin Deputy Director, Institute of Refrigeration and Cryogenics, Shanghai Jiao Tong University
Deputy Secretary General, China LNG Association
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Content
• 1. Energy background in China
• 2. Large scale LNG in China
• 3. Small scale LNG in China
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1. Energy background in China
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Energy by 2015
Quota Unit 2010 2015 Annual increase
Primary Energy Production btce 3.12 3.62 3% Coal btce 3.43 3.75 1.8% Oil btce 0.2 0.215 1.1% Natural gas bcm 95.79 134.6 7.0% Non fossil energy btce 0.32 0.52 10.2% Power capacity TW 0. 97 1.53 9.5% Energy consumption btce 3.61 4.3 3.6%
Coal % 69.2 64 〔-5.2〕*
Oil % 17.4 18.1 〔0.7〕 Natural gas % 4 5.9 〔1.9〕 Non fossil energy % 9.4 12 〔2.6〕 *Data in〔〕indicate the accumulated increase in the five years.
12th Five-Year Plan: 2011-2015; 13th Five-Year Plan: 2016-2020
Adopted from the 13th FYP of Energy Development
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Energy mix in 2015
Coal29%
Oil33%
Ntural gas24%
Nuclear E4%
Hydraulic E7%
Renewable3%
World energy mix 2015
Coal64%
Oil19%
Natural Gas6%
Nuclear E1%
Hydraulic E8%
Renewable2%
China energy mix 2015
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Coal down, NG up
Coal consumption: much more than world average – Decrease in 3 consecutive years since 2014
– Already the peak in 2013? • The proportion will never go back to that in 2013.
• The absolute amount: highly possible in 2013.
Natural gas consumption: much less than world average – Continuous high speed increase
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The Paris Agreement
The most important promise China has made during 12th FYP period was in The Paris Agreement
– Carbon emission vs. GDP: 60-65% down in 2030
– Carbon emission peak: in 2030
How to achieve?
– Non fossil energy: 20% in 2030
• Renewable: not economically and/or technically available
• Nuclear: safety and waste disposition
– Natural gas must play an important role
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NG production World natural gas production was 3538.6 bcm in 2015, while 138.0 bcm in China
For the 10 years period, the world production increased 27.3%, while 171% in China.
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NG consumption • For the same period, China’s natural gas
consumption increased 309%!
• The shortage of natural gas is also increasing. In 2015, China imported 33.6 bcm natural gas by pipeline, and 26.2 bcm by LNG.
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Production
Consumption
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A large LNG importer
• Mainland China began to import LNG in 2006
• It is now the 3rd largest importer in the world
• China’s LNG consumption increased dramatically in 2016, by nearly 35%, to around 27 Mtpa.
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The 13th FYP • According to the 13th FYP of Energy
Development, the natural gas consumption will increase to 10% in 2020, from 5.9% in 2015
• In the same period, coal consumption will decrease to 58% from 64%
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The main energy • In the opening speech of G20 Energy Ministerial
Meeting in Beijing in June 2016, Vice Premier Zhang Gaoli pointed out that, natural gas and non-fossil energy may become the main energy in the future world
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2. Large scale LNG in China
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LNG receiving terminals
• 16 LNG receiving terminals have been built in mainland China
• At least 1 in each coastal province
• More are under construction or planned, including some by private companies
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The ENN Zhoushan receiving terminal
• Invested by ENN, China’s largest private gas company
• Located in an island of Zhoushan, Zhejiang Province
• Capacity 3Mt/a for the 1st phase, with 2 LNG tanks of 160k m3, an offloading pier capable for a 266k m3 LNG carrier, a loading pier capable for two 30k m3 LNG carriers, and 2 loading berths for LNG Ro-ro ship
• Completion of main construction of tanks in end of 2016
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The ENN Zhoushan receiving terminal
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LNG carriers
• Hudong-Zhonghua Shipbuilding (Group) Co. Ltd has built 11 LNG carriers for MOL, China LNG, China Shipping Group andChuo Kaiun
– 1x143k m3, 2x145k m3, 3x147k m3
– 2x169k m3, 1x172k m3 and 2x174k m3
• Orders of LNG carriers for Teekay and China Shipping Group
– 7x174k m3
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LNG carriers
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LNG plant
• Gas source: CNPC pipeline
• Designed liquefaction capacity: 5x106 Nm3/d, by far the largest one in China
• Process: Cascade
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3. Small scale LNG in China
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3.1 Liquefaction
• Nearly 200 LNG plants have been built
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Liquefaction summary • Small size: capacity usually under 2 million Nm3/d
• Diverse Processes
– Home companies have strong abilities in competition
• State-owned companies such as Huanqiu
• A number of vivid private companies: Chengdu Shenleng,
GreenEnergy, and so on
– International Technology is still welcome: BV, Linde, AP…
• Various feed gases: NG, CBM, SNG, COG, shale…
• Innovations are common in China LNG industry
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LNG plants suffers • The small LNG producing companies suffers
painfully from the low oil price
– Fuel customers are reluctant to change from oil; some even change back from LNG to oil
– Competition from cheaper short-term imported LNG
• The overall operating rate was usually 30-40% since 2015
• LNG plants fed with unconventional gas, e.g COG, run well these years
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3.2 Small carriers
• Small LNG carriers are important to transport
LNG from large terminals to nearby coastal
terminals, or terminals along large rivers
• For example, the Shanghai Wuhaogou LNG
peak-shaving station, with totally 320k m3 LNG
tanks, is receiving LNG by small carriers from
Shanghai LNG terminal or other large terminals
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Small carrier types
• 30k m3
– L=185.2m, B=28.1m, D=18.5m
– 16130DWT, total weight 25400t
– 16.5kn
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Small carrier types
• Layout
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Small carrier types
• 10k m3
– L=125.1m, B=22.4m, D=8.6m
– DWT5200
– 12.3kn
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Small carrier types
• Dual fuel tugboat
• LNG bunkering ship (1000m3)
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3.3 Utilizations
• Residential
• Industrial
• Transportation
– 5 millions road NGVs
– Dual fuel LNG ship in rivers; Prospective more
sea ships
• CCHP systems
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Pollution: key driver
• Air pollution situation is very severe in China,
especially in the area around Beijing
• Government has issued policies to prohibit
use of coal in some area, and to encourage
the shifts from coal to gas/electricity
• The demand for natural gas, including LNG,
is rising rapidly
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Shanghai: 1st ECA in China?
• In June 2015, Shanghai effected a local
regulation to control ship emission to the air
in the Shanghai Port area, the first of such
regulation in China. The regulation
encourage the use of low-sulphur oil and
clean fuel
• The suggestion to established Emission
Control Area (ECA) has been proposed
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Price: another driver
• The oil price has been risen considerably
from the lowest point
• More short-term LNG is imported, which is
much cheaper than the long-term LNG
• These has pushed the rapid increase of LNG
utilization
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Sales of LNG truck
• The sales of LNG heavy duty trucks increased
257% in January 2017, compared to January
2016
• 4119 LNG heavy duty trucks are sold in
February 2017, more than times of that in
February 2016
• The highest monthly sale was 6582 in
September 2014
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Prospects
• China has many experiences in small LNG,
including liquefaction, transmission, storage,
regasification and utilization
• With the important role of natural gas for
pollution control and carbon reduction,
small LNG has a bright future in China
• Open to cooperation all over the world
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• The 19th International Conference and
Exhibition on Liquefied Natural Gas (LNG
2019) will be held in Shanghai, China in 1-5
April 2019
• Presented by IGU/GTI/IIR
• Hosted by CLNGA/CGS/CAR/CGA
• Supported by Shanghai Government
• http://www.2019.com
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Thank you for your attention!
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Contact
• Prof. Dr. Wensheng Lin
• Institute of Refrigeration and Cryogenics,
Shanghai Jiao Tong University
• Tel: +86 21 34206533
• E-mail: [email protected]