LNG Process Overview C Poh PTU/L - LNG June 2012 Shell Projects & Technology RESTRICTED June 2012 1 Agenda LNG Characteristics Terminology Why LNG? LNG Value Chain The LNG Plant MMLS SHELL – PROJECTS & TECHNOLOGY RESTRICTED 2 LNG Characteristics What are the key characteristics of LNG? LNG consists mainly of methane (C1) Liquefied Natural Gas (LNG) is a colourless, cryogenic liquid LNG has an atmospheric boiling point of –163 ºC to –160 ºC Depending on composition, LNG has a density of 450 – 465 kg/m3 1 m3 of LNG at atmospheric pressure equals 600 sm3 of gas … and what are the consequences of these characteristics? LNG is very cold → when spilt, it will cause frostbite on your skin LNG in ambient conditions vaporizes quickly → it needs to be kept in cryogenic insulated storage (= expensive and heavy) Even when stored in a cryogenic tank, some LNG will vaporize → this should be addressed in any design SHELL – PROJECTS & TECHNOLOGY RESTRICTED 3 Terminology Sales Gas LNG Feed GTL Feed Impurities WATER CO2 H2S HG NITROGEN Associated Gas METHANE NGLs Ethane 80 - 95 MOL% LNG / Grid Propane Wellhead Fluid Butane ETHANE Condensate NGL Crude Oil SHELL – PROJECTS & TECHNOLOGY LPG’s PROPANE BUTANE C5+ RESTRICTED 4 Why LNG? SHELL – PROJECTS & TECHNOLOGY RESTRICTED 5 Gas schemes Pipeline gas scheme treating Transmission & recompression distribution LNG chain transmission distribution Deep treating & Liquefaction SHELL – PROJECTS & TECHNOLOGY LNG storage & loading Shipping Receiving terminal & re-gasification RESTRICTED 6 Cost Comparison of transportation methods VLCC Distance SHELL – PROJECTS & TECHNOLOGY RESTRICTED 7 LNG Value Chain SHELL – PROJECTS & TECHNOLOGY RESTRICTED 8 SHELL – PROJECTS & TECHNOLOGY RESTRICTED 9 The LNG PLant SHELL – PROJECTS & TECHNOLOGY RESTRICTED 10 Block Flow Diagram: LNG plant CO2, Sulphur, ACID GAS INCINERATOR Natural gas H2O, Mercury Inlet Station Treating & Drying Field Condensate Water Air or water Cooling Storage & Loading Liquefaction LNG Fractionation LPG Plant Condensate SHELL – PROJECTS & TECHNOLOGY RESTRICTED 11 Slug catcher Gas to AGRU Liquids to Fractionatio n Unit SHELL – PROJECTS & TECHNOLOGY RESTRICTED 12 Fractionation / NGL extraction C1/C2 reinjected back to LNG or routed to Fuel gas system LPG / Condensate to storage Typical fractionation unit: Demethanizer-Deethanizer-Depropanizer-Debutanizer SHELL – PROJECTS & TECHNOLOGY RESTRICTED 13 Acid gas removal – Molsieve dehydration – Mercury removal Gas from Slug catcher Wet gas to Molsieve Hg guard bed SHELL – PROJECTS & TECHNOLOGY Dry mercury free gas to liquefaction RESTRICTED 14 Liquefaction unit Main Cryogenic Heat Exchanger (MCHE) Typical liquefaction circuit SHELL – PROJECTS & TECHNOLOGY RESTRICTED 15 LNG storage & loading SHELL – PROJECTS & TECHNOLOGY RESTRICTED 16 LNG Technology SHELL – PROJECTS & TECHNOLOGY RESTRICTED 17 Principle of mechanical refrigeration Heat Example: first level of propane cooling Cooler Air, 30 °C Power propane 20 bar 80 °C 57 °C Compressor Gasturbine 4.7 bar 0 °C J-T value Heat 46 °C SHELL – PROJECTS & TECHNOLOGY Natural gas Heat exchanger 3 °C RESTRICTED 18 C3/MR LNG LNG -161 C -161 C -120 C -120 C -30 C Ethane Methane -123 C …. -33 C MR -30 C …. …… Methane -123 C -33 C MR Ethane Propane Propane NG SHELL – PROJECTS & TECHNOLOGY NG RESTRICTED 19 MMLS SHELL – PROJECTS & TECHNOLOGY RESTRICTED 20 MMLS – Movable Modular Liquefaction System Unique Shell concept, developed in US Containerised mini-scale LNG facility Limited site preparation work required, simple to install and to redeploy Capacity around 0.25 Mtpa (multiple units for higher capacity) Generally international standards applied with Shell safety requirements and LNG experience overlayed Costs similar to ‘conventional’ mini-scale LNG Designed in collaboration with fabrication company with track record in mini/micro scale LNG FEED for generic MMLS completed Standardized design allows global deployment Plug & Play functionality with optional units allows tailoring to individual opportunities without design change (e.g. power generation, LPG & condensate export, feed-gas compression) SHELL – PROJECTS & TECHNOLOGY RESTRICTED 21 MMLS: Combination of Shell’s world leading LNG experience and cost effective small scale equipment packaging. • Combination of Shell’s world leading LNG experience and cost effective small scale equipment packaging Moveable Modular Liquefaction System (Full system • Capacity 0.1-0.25 mtpa (15-40 mmscfd feed gas) • Standardized design for range of gas compositions and air temperatures using only proven technology. • Requires very limited site/country specific adaptation. Allows pre-ordering before permits. • fully packaged on road transportable skids including pipe racks and utilities. • Fully pre-commissioned at Vendor • 24 month or less design/fabricate/install/Commission schedule • Completed all design and project maturation and internal safety reviews and assurance activities to similar depth as “large Shell LNG project”. Typical equipment skid • Production Performance guarantee by Shell similar to “large” LNG • Final Investment Decision for Canada Fuels project taken. To be announced Sept 9. • Same plant will work at Cameron with addition of optional C5+ stripping column. • Shell has priced options for additional units. • Shell has mechanism in place to manage and assure delivery of multiple packages. SHELLplant – PROJECTS & TECHNOLOGY RESTRICTED 22 DESIGN FEATURES Basic features Optional features Capacity 15-30 MMSCFD feed gas (0.10.25 mtpa LNG) Feed gas compression (up to 60 bar) Feed gas source: raw well gas, pipeline gas TSA molsieve for CO2 removal (up to 0.25 mol%) Simple inlet separation (no slugcatcher) Fractionation units (Deethaniser, Debutaniser) Operating pressure 40 bar – 60 bar LPG, condensate storage Amine system to remove up to 3% CO2 and 34 ppm H2S Power generation facilities TSA molsieve dehydration Guard beds for trace contaminants removal Cold box and demethaniser MR compressor LNG storage Flare system SHELL – PROJECTS & TECHNOLOGY RESTRICTED 23 Chart Cold Box Brazed fin aluminum heat exchanger used in majority of small scale LNG and peak shaving plants. Chart is major supplier of this type exchanger. Many units in service in Shell in NGL plants, etc LNG Plant design by Salof and Shell. Shell have gone thru full review of Chart equipment according to internal technology release process for use in LNG service. SHELL – PROJECTS & TECHNOLOGY RESTRICTED 24 MMLS – Process Block FLOW Diagram Blue blocks, in several cases not required Full MMLS contains about 100 container size modules Typical application requires about 60 modules SHELL – PROJECTS & TECHNOLOGY RESTRICTED 25 Layout SHELL – PROJECTS & TECHNOLOGY RESTRICTED 26 MMLS – LNG For Transport SHELL – PROJECTS & TECHNOLOGY RESTRICTED 27 Conventional Supply Chain versus LNG in Transport LNG Carrier Regas Terminal CONVENTIONA L Power Plant LNG Refuelling Station LNG Trailer Truck Small Scale Liquefaction LNG Fuelled Truck ROAD Small Terminal LNG Bunker Vessel Small LNG Carrier SHELL – PROJECTS & TECHNOLOGY LNG Fuelled Vessel RESTRICTED MARINE 28 Canadian Green Corridor Project 1 MMLS unit near Calgary at existing Shell site Process pipeline gas into LNG fuel for Trucks, Drill rigs, Mining, Rail. Final investment decision taken August 2011 Plant contract award planned for Oct 2011 Part of Global LNG fuels strategy Startup 2013 SHELL – PROJECTS & TECHNOLOGY Typical equipment skid RESTRICTED 29 CGC Project - First MMLS Application EXAMPLE: COMMERCIALISING LNG FOR TRANSPORT Fort Mc Murray Fort St John Grande Prairie Canada Green Corridor FID 2011 FID for 0.3 mtpa LNG Long distance truck fuel LNG retail infrastructure Edmonton Calgary Vancouve r Jumping Pound ENGINES MODIFIED FOR LNG LNG POWERED TRUCK SHELL – PROJECTS & TECHNOLOGY RESTRICTED 30 ACCESS TO KEY STRATEGI C MARKETS SHELL’S GLOBAL LNG PORTFOLIO ALTAMIRA BAJA COVE POINT ELBA ISLAND DUBAI HAZIRA SPAIN LNG FOR TRANSPORT SHIPPING GREEN CORRIDOR ARKAT EXPORT BRUNEI LNG MALAYSIA LNG LNG - OPERATION LNG - CONSTRUCTION REGAS POSITION - OPERATION NORTH WEST SHELF SAKHALIN II PLUTO (WOODSIDE)* QATARGAS 4 NIGERIA LNG OMAN LNG QALHAT* WHEATSTONE LNG PRELUDE GORGON LNG * Indirect Interest SHELL – PROJECTS & TECHNOLOGY RESTRICTED 31 Movie – MMLS SHELL – PROJECTS & TECHNOLOGY RESTRICTED 32 SHELL – PROJECTS & TECHNOLOGY 33 RESTRICTED 33 Cascade process LNG -161 C -164 C Methane -100 C Ethylene -103 C -30 C Propane NG SHELL – PROJECTS & TECHNOLOGY RESTRICTED 34 SHELL – PROJECTS & TECHNOLOGY RESTRICTED 35 SHELL – PROJECTS & TECHNOLOGY RESTRICTED 36 LNG Liquefaction technology C3/MR [APCI, Shell] majority of the LNG plants Optimised Cascade Process [Philips] [Darwin; Trinidad] DMR [Shell] [Sakhalin] SMR [APCI] [Libya] MFCP [Linde] [Snohvit] C3-MR-N2 (AP-X) [APCI ] [Qatar] C3 PMR [Shell] Liquefin [Axens] SHELL – PROJECTS & TECHNOLOGY RESTRICTED 37 LNG Regas Terminal SHELL – PROJECTS & TECHNOLOGY RESTRICTED 38 Block Flow Diagram: LNG Regas Terminal Pipeline Compressor Vent/Flare LNG Carrier BOG Compressor Vapour Return Arm N2 Injection Unit Unloading Arms Recondenser In-tank Pumps Vaporisers LNG Tanks HP Pumps Metering Station Odorization N2 Injection Unit Instrument Air Electricity Nitrogen Potable water Seawater Fuel gas SHELL – PROJECTS & TECHNOLOGY Firewater Dotted lines indicate Optional Units RESTRICTED 39 39 Regas Technology SHELL – PROJECTS & TECHNOLOGY RESTRICTED 40 Open Rack Vaporizer (ORV) Consists of panels with a large number of heat transfer tubes Excellent operating experience & safety record Heat medium is seawater, low energy consumption More susceptible to seawater quality Gas temperature limited by SW temp. Cannot be used in cold climates SHELL – PROJECTS & TECHNOLOGY RESTRICTED 41 41 Submerged Combustion Vaporizer (SCV) Proven experience Heat source is from burning NG Fuel rate: 1.3 – 1.5% of gas throughput – can be costly! Allows high gas sendout temperatures SHELL – PROJECTS & TECHNOLOGY RESTRICTED 42 42 Shell & Tube Vaporizer (STV) • Shell & tube heat exchanger with closed loop heating medium • Heating medium – water/glycol heated by gas fired heaters SHELL – PROJECTS & TECHNOLOGY RESTRICTED 43 43 Ambient Air Vaporizer (AAV) • Air cooled heat exchanger • Heat source is air with supplemental heat SHELL – PROJECTS & TECHNOLOGY RESTRICTED 44 44 Hybrid Vaporizer (SPX/SCV) • Closed loop recirculation system with heat source from air • Air tower serves as heating function • Supplemental heat from SCV during winter SHELL – PROJECTS & TECHNOLOGY RESTRICTED 45 45 Intermediate Fluid Vaporizer (IFV) • • • • • • Some operating experience Low energy consumption Less susceptible to seawater quality – titanium tubes Gas temperature limited by SW temp. Cannot used in cold climates Require intermediate fluid – e.g. propane, butane LNG Vaporizer LNG Vaporization I.F. Condensation NG I.F. Vaporization NG Heating LNG I.F. Vaporizer Sea Water NG Heater Sea Water SHELL – PROJECTS & TECHNOLOGY RESTRICTED 46 46