Transport of Light
Gases Blended with LNG
LNG Transport
Industry Summary
LNG Production Worldwide
LNG supply by year: 2005 to 2013
Supply by country: 2013 YOY
Markets: 2013 YOY
Shipping LNG: Supply & Demand
•
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
Growing Industry & Transport
Capacity
•
•
•
226 ships built through 2006
163 ships built in 2007 through 2013
46 ships planned for delivery in 2014 or later
LNG Value Chain
Cost of Transporting LNG
•
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
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
•
Ethylene: Prime Raw Material for
Chemicals
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 Production
Chemical Production needs Raw
Materials
Potential New Ethylene Technology
•
Synfuels GTE makes Ethylene from Low Cost Natural Gas Economically
•
GTE Ethylene market needs:
– Local Chemical Industry
– Mode of Transport to Traditional Market
Destination Value of Gases
•
Methane - $200 to $800/tonne
•
Ethylene - $1100 to $1600/tonne
•
Propylene – $1600 to $2000/tonne
Ethylene Transport Using LNG
Few Changes to Existing LNG
Facilities are Needed
Chemicals made from
Ethylene
Cryogenic
Separation of
Ethylene from
LNG
Handling Ethylene/LNG Blend
•
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
Liquifaction Equipment Additions are Minimal
•
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
Gasification 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
Example Case - Load Value
o
o
Ship Size – 138,000 cu meters
58320 tonnes displacement*
100% Methane
75 wt% Ethylene
75 wt% Propylene
$ 35.0 Million
$ 63.4 Million
$ 95.1 Million
•
All examples above for equal displacement shipping from USA to Japan
•
Cost to manufacture ethylene and propylene set at $350/tonne
Market Opportunity is Enormous
•
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)
Process Description
GAS LIQUIFICATION (SOURCE)
ETHYLENE VAPOR
Ethylene
VAPOR
REFRIGERATION
(EXISTING)
LIQUID
ETHYLENE-LNG
CROSS-EXCHANGER
ETHYLENE
LIQUID
LIQUID ETHYLENE
PUMP
LNG
(EXISTING)
ETHYLENE/LNG
LIQUID
Liquid
Transfer
Pump
(Existing)
LIQUID
BLENDER
LIQUID
ETHYLENE/ LNG
STORAGE
(EXISTING)
LNG TRANSPORT
EXISTING
Process Description
LIQUID GASIFICATION (DESTINATION)
METHANE VAPOR
METHANE PIPELINE
(EXISTING)
ETHYLENE-LNG
LIQUID MIX
REFRIGERATED
CONDENSOR
LNG TRANSPORT
OFFLOADING
PUMP
(EXISTING)
EXISTING
ETHYLENE PIPELINE
(EXISTING)
METHANE – ETHYLENE
CRYOGENIC SEPARATOR
FIN-FAN
REBOILER
ETHYLENE
GASIFIER
(EXISTING)
Opportunity A
(Add Synergy to Close Ethylene and LNG plants)
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 B
(Utilize far apart LNG and ethylene 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 C
(Simplify Transport through Blending)
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
Potential GTE/LNG Sites
Co-Locations of Ethylene production and LNG Loading (Blue) and Receiving (Green)