PEP Review 2003-15 BASE LOAD LNG BY CASCADE REFRIGERATION By David Netzer And Richard Nielsen (December 2003) ABSTRACT Movement of natural gas from remote locations with abundant supply of natural gas to the consuming countries can be economically achieved only via the liquefaction route with shipping by ocean tankers. About 160 million metric tons/y of new liquefied natural gas (LNG) capacity is being implemented or in various planning stages in addition to the existing 100 million mt/y of LNG capacity of about 20 global facilities. Until recently, cascade refrigeration systems for LNG production accounted for about 3.5% of the LNG global market with significant production at ConocoPhillips plant in Kenai, Alaska. Almost all the balance of the LNG market, about 90%, is predominantly propane pre-cooled, mixed refrigerant systems. Recent marketing efforts by a collaboration of ConocoPhillips and Bechtel are increasing the market share of cascade refrigeration technology. This Review evaluates the economics of a base loaded, generic cascade refrigeration LNG plant nominally producing at least 600 million scf per stream day (4.375 million mt/y at 0.95 on stream factor) of LNG using two 50% capacity refrigeration and liquefaction trains. The feed gas is lean, containing less than 8 vol% (17 wt%) C2+, and also has low nitrogen and CO2 contents (less than 1 vol% and 1.2 vol% respectively). A generic LPG (liquefied petroleum gas) recovery process is used and the nitrogen stripping step is avoided. The refrigeration systems use a combined cycle mode of propylene and ethylene cycles driven by gas turbines and methane refrigeration driven by steam turbines. A closed loop methane refrigeration system is used for this lean gas plant, however, an open loop methane cycle could be considered as an alternate. The competing mixed refrigerant cycle technology is given a cursory review. The proposed design represents a relatively low greenhouse gas emission plant (0.20 ton CO2/ton of LNG, as opposed to a typically reported 0.25-0.35 ton CO2/ton LNG) with low NOx emission. INTRODUCTION The production of Liquefied Natural Gas (LNG) has been commercially practiced since 1960. Since LNG is stored and delivered at atmospheric pressure and -160°C (-256°F), very deep refrigeration is needed with the associated large energy consumption. Two types of LNG plants have been built: • Peak shaving plants for seasonal adjustment and storage, mostly in the USA • Base load LNG plants for international trade with LNG shipped by dedicated LNG ocean tankers. The capacities of the peak shaving plants are rather small, more than an order of magnitude smaller than base load LNG plants. Based load LNG is the focus of this report. Typically, the liquefaction energy in a LNG plant is reported to be in the range of 9-12% of the heat energy in the natural gas where 9-10% energy shrinkage is known to be a typical number for modern mega tonnage capacity avoiding combined cycle systems. The capital investment in modern LNG facilities is reported to be over $1.0 billion with 45-60% attributed to offsites and infrastructure depending on one’s definition of offsites, particularly LNG storage, the marine system, and the heat rejection method. The thermal efficiency of LNG plant is determined by two major factors: (a) The refrigeration cycle efficiency (b) The power cycle efficiency. Increasing the thermal efficiency of a LNG plant for a given turbine/driver configuration will minimize on site gas consumption and will minimize greenhouse gas emissions of the combustion CO2. The proposed design represents a relatively low greenhouse gas emission plant (0.20 ton CO2 /ton of LNG, as opposed to a typically reported 0.25-0.35 ton CO2/ton LNG [9]) also having low NOx emission (0.095 kg/ton). Further, the thermal inefficiency, of 9-12%, is nearly proportional to the heat rejection and would almost proportionally affect the LNG production rate for a given turbo machinery configuration and thus indirectly affect the cost of production. For evaluating the process economics, we use a base case of lean gas feed, 92 vol% (85 wt%) methane containing under 1.2 vol% CO2 and less than 1 vol% nitrogen supplied at 46.5 kg/cm2-a (650 psig). The nominal production rate of 525 mt/h (4.375 million mt/y at 0.95 on stream factor or 600 million scf/sd) of LNG depends upon the average ambient air temperature and the heat rejection temperature. The production concept is based upon two treating, liquefaction and heat recovery trains each 50% of total plant capacity. Each train uses one General Electric F7A frame, or equivalent gas turbines such as Rolls-Royce’s Trent model, in the refrigeration system. Therefore, the performance of the gas turbine is a key factor in establishing the LNG production rate. Waste heat is being recovered as 63 kg/cm2-g, 482°C (900 psig, 900°F) steam from the gas turbines exhaust gas at about 545°C, 300 mm water-g (1,020°F, 12 in. water-g). This steam drives two 50% methane refrigeration compressors and, on a separate shaft, two power generation turbines. All turbines condense at summer conditions of 40.6°C, 57 mm Hg (105°F, 1.1 psia) using sea water at 27°C (81°F) maximum and discharged to 31-32°C (88-90°F) maximum. Unlike ConocoPhillips’ new design that uses an open loop methane refrigeration cycle, we selected a closed loop cycle while recognizing that the open loop concept could avoid a separate fuel gas compressor, an issue to be evaluated on a case specific basis [1,4,5]. Further, unlike ConocoPhillips, we have decided to use propylene refrigerant rather than propane refrigerant, thus reducing the volumetric refrigerant flow by 22% over propane and allowing more vendor selection options for a single propylene compressor. The recent design trend by both Bechtel and Kellogg Brown & Root seems to suggest the use of air cooling as a method of heat rejection from the refrigeration cycle. From public information released by Linde AG it is obvious that seawater cooling is their preferred method [2]. Needless to say this is a site specific issue. However, based on our preliminary analysis, especially for fixed speed gas turbines such as the General Electric frame 7, unless heat 2 PEP REVIEW 2003-15 rejection to sea water is prohibited by local law, water cooling would be the more economical method of heat rejection in most cases: fresh water as first priority; once through sea water as a second priority. A combination of these including rejecting the heat to seawater via a tempered water cycle (loop) should be considered on a case by case basis. The key capital cost elements in LNG facilities are in descending order: 1. Gas turbines steam turbine or motor drivers for refrigeration service. 2. Refrigeration compressors, typically over 100,000 kw 3. Steam and power generation including turbines waste heat recovery. 4. LNG storage, typically over 50,000 ton. (1,000,000 bbl) 5. LNG loading terminal including jetty or causeway. 6. Heat rejection system, in most cases, as suggested, seawater cooling. 7. Cold box and pre-chilling for gas liquefaction 8. Natural gas pre-treating for CO2 removal gas drying and mercury adsorption. 9. LPG and natural gasoline recovery as by products. 10. Fuel gas cold recovery and compression. The above cost ranking illustrates that heat transfer, i.e. the cold box, is of secondary importance compared with the capital investment associated with compression and several sitespecific factors. Nevertheless, the correct selection of the optimized refrigeration cycle and associated drivers affects the compression and heat rejection systems. This choice becomes an important item in the project evaluation especially that many of the site specific items are totally independent of the liquefaction cycle technology. The utilization of stranded gas as a source of energy to distant users, although expensive, appears very economical as compared to gas to liquids. Recent announcement of GTL project 34,000 bpsd mixed liquids calls for investment of $675 million (or just under $20,000 per daily barrel, which is just less than 80% of the benchmark $25,000 per daily barrel). The heat equivalent of 34,000 bpsd is estimated at 200 million scfd of LNG, 1.46 million mtpy. On this basis the GTL capital investment is 2.2 times higher per Btu and even after adjustment for economy of scale costs about 1.8 times higher than modular construction of a LNG plant of 300 million scfd [12]. It is recognized that cost of transporting LNG say $0.75/MM Btu HHV ($35/ton) is double the cost of transporting crude oil, about $17-21/ton. Further it is recognized the cost of re-gasification (about $16 per ton) is avoided. Nevertheless even after considering all these factors LNG seems by far the more economical fuel. The thermal efficiency of GTL, based on 330 million scfd feed gas, is about 60% as opposed to 94% efficiency for LNG. The additional gas consumption increases the cost of GTL by additional $27 per ton, which cancels out the re-gasification, and half of the transportation cost advantage of GTL. The greenhouse gas emission from GTL production is about 2.0 ton of CO2 per ton of synthetic crude, 10 times higher over the LNG case. The synthetic crude is yet to be fractionated in a petroleum refinery to produce fuel oil to compete with LNG. 3 PEP REVIEW 2003-15 CONCLUSIONS From our review of the literature and economic evaluation, we conclude: 1. It is our judgment that the thermal efficiency of the cascade refrigeration design, as suggested, is close or equal to the efficiency of the propane pre-cooled mixed refrigerant system and somewhat lower than mixed fluid cascade (MFC) refrigeration. However, at the end, no one process for gas liquefaction has a decisive advantage over other processes that would make an LNG project economically viable in a given location while a competing process technology would not. The calculated efficiency is 93.4% plus 13.0 MW of electric power export, which is equivalent to 0.5% additional efficiency, thus the total equivalent efficiency is 93.9%. 2. The production rate of LNG can be easily designed to increase from 526 mt/H (4.375 million mt/y) to 555 mt/H (4.619 million mt/y) by using the startup steam turbines on a continuous basis as booster turbines and utilizing the auxiliary steam generator on a full time basis. No electric power will be exported under this scenario. 3. Reducing the methane content of the raw natural gas feedstock from 92 vol% to 85 vol% increases production capacity by 0.2% while maintaining the same gas turbine power. The LPG and natural gasoline production increases by 469%. 4. Increasing the feed gas pressure from 650 psig to 775 psig decreases LNG production by 0.5 wt% at a constant raw gas plant feed rate but the total refrigeration compressor horsepower decreases 2.0%. 5. Avoidance of superheating the suction to the methane compressor from about –153°C (243°F) to –101°C (-150°F) will reduce the total refrigeration power requirement by 1.7% over the base case, which superheats the methane to –101°C (–150°F). However, this option increases the capital investment by about $4.5 million. 6. The key factors in the overall relative economics of LNG are related to the correct selection of the refrigeration compressors, the configurations of the compressor drivers, the method of heat rejection, as well as some very site specific factors including climate (especially ambient conditions), soil conditions, marine system design, and LNG loading, storage and transportation logistics. 7. The total capital investment including 15% contingency is estimated to be $912 million. The capital investment in LNG production is measurably lower than the investments reported by others. However we believe our estimate, $181 per ton LNG based on US Gulf Coast labor cost and productivity, that was corroborated by several sources of expertise represents a realistic scenario. After adding 15% contingency the capital investment is $209 per ton excluding the cost of land, owner’s cost (royalty fees), or any unusual soil conditions. 8. Based upon Conclusion 7, using feed gas at $0.75/MM Btu higher heating value (HHV) and by-products LPG at 9.62 ¢/lb (about 42 ¢/gal) and gasoline at $10.8 ¢/lb (about 65 ¢/gal), the net production cost of LNG is 3.62 ¢/lb of LNG or $79.80 per ton LNG. At 23,550 Btu/lb (HHV), the net production cost at the LNG ocean tanker is US $1.54/MM Btu HHV of LNG. For a return on investment of 25%, the product value is $2.54/MM Btu HHV of LNG. 9. Based upon the $3.50/MM Btu HHV value of natural gas in the U.S., the product value at the plant is estimated to be $2.60/MM Btu HHV or 6.12¢/lb of LNG after subtracting transportation cost of $0.55/MM Btu HHV for about 2,000 miles shipping and $0.35/MM 4 PEP REVIEW 2003-15 Btu HHV for re-gasification. At $2.60/MM Btu HHV, the plants return on investment (ROI) before tax is estimated to be a favorable 26%. LNG MARKET OVERVIEW International LNG trade is expanding rapidly. In the 1980’s there were only two grass roots LNG facilities built. In the 1990’s, six grass roots LNG plants were added to the list. Now, seven new LNG plants are in advanced planning stage or in engineering and construction phases. As shown below, over 90% of new LNG facilities are planned for tropical equatorial or sub-tropical regions. Our selection of the generic ambient conditions reflects this reality. The median capacity of the proposed new facilities is in the order of 4.5 million mt/y. This is a factor considered in selecting our design capacity of 4.4 million mt/y for this evaluation. Current LNG Production and Consumption Total global LNG production is 110 million mt/y. Major consumption and production areas are listed in Table 1. LNG Projects in advanced planning or the engineering and construction phase total over 60 million mt/y as listed in Table 2. Twenty-two projects are reported to be planed for the long term and total an additional 110 million mt/y (Table 3). Current and proposed projects range in capacity from 3 to 11.2 million mt/y. Table 1 MAJOR LNG PRODUCTION AND CONSUMPTION AREAS (2002) Production % Consumption % Indonesia 23.4 Japan 48.0 Algeria 18.2 Korea 15.8 Malaysia 13.2 France 9.4 Qatar 12.2 Spain 9.1 Australia 6.5 Taiwan 4.8 Brunei 6.0 United States 4.7 Oman 5.6 Turkey 3.3 Nigeria 5.2 Belgium 2.4 Abu Dhabi 4.5 Italy 2.3 Trinidad 3.5 Greece 0.3 United States (Alaska) 1.2 Libya 0.5 Source: [10, 11] 5 PEP REVIEW 2003-15 Table 2 LNG PROJECTS -- ADVANCED PLANNING OR ENGINEERING AND CONSTRUCTION STAGES Project Capacity, million mt/y Trinidad, Atlantic LNG trains 3 & 4 8.5 Egypt, LNG train 1-2 7.2 Egypt, Damietta 5.0 Egypt, Idku 3.6 Nigeria LNG trains 4 & 5 11.2 Norway, Snohvit 4.0 Malaysia, Tiga 7.6 Qatar, Ras Laflan 4.7 Oman 3.0 Australia, North West Shelf, 4 4.2 Australia, Darwin 3.6 Total 62.6 Crude oil Equivalent 71 mm t/y, 1.5 mm BPSD Estimated capital expenditure $16,000 million Sources: [7,11, 13, SRI Consulting] 6 PEP REVIEW 2003-15 Table 3 LONG RANGE LNG PROJECTS Project Capacity, million, mt/y Project Capacity, million, mt/y Equatorial Guinea 3.4 Tangguh, Indonesia 7.0 Brass Nigeria 5.0 North West Shelf, Australia 4.0 Trinidad, Atlantic LNG 5.2 Bontag Indonesia 3.0 Angola LNG 4.0 Sakhalin Island, Russia 9.6 Egypt LNG expansion 3.0 Bolivia 7.0 Egypt Damietta 5.0 Camisea, Peru 4.0 Nigeria LNG train 6 4.0 Gorgon, Australia 7.0 Algeria 4.0 Sunrise, Australia 5.0 Amazon 3.0 Yemen 3.0 Venezuela 4.0 Iran 4.8 Qatar, Ras Laffan 2 trains 15.6 _____ Total 110.6 Sources: [7, 11, 13, SRI Consulting] LNG Terminals In order to accommodate the projected production and consumption growth, new LNG regasification and unloading terminals need to be constructed. Forty terminals including 19 in Japan and four in North America are in operation. Many terminals are in planning stage including fourteen new LNG terminals for North America. The proposed North American terminals include an off shore terminal near Oxnard, California where it is assumed LNG will be re-gasified on a platform structure 21 miles from shore [3]. An additional terminal in Baja California Mexico is mostly dedicated for Southern California. A LNG terminal in Freeport, Texas would become a captive source for petrochemical feedstock for Dow Chemical’s ethylene production [3]. Interesting enough, a LNG terminal is also being contemplated by Repsol for the Gulf of Mexico near Tampico, Mexico. LNG Specifications The main specifications on LNG in Europe, Japan, Korea and the US Gulf Coast and Northeast are a maximum 0.5 vol% of C5 and heavier components and a higher heating value in the range of 950 to 1,100 Btu/scf. Specifications in California are listed in Table 4. 7 PEP REVIEW 2003-15 Table 4 CALIFORNIA LNG SPECIFICATIONS Specification Value Methane, vol% min. 88 Ethane, vol% max. 6 Propane-Pentane, vol% max. 3 Hexane and Heavier, vol% max. 0.2 Nitrogen plus Carbon Dioxide, vol% max. 1.4-3.5 High Heating Value, Btu/scf 970-1150 Source: [8] PROCESS REVIEW The most common refrigeration system in prior LNG projects is the mixed refrigerant system preceded by propane refrigeration. Close to 90% of these plants are licensed by Air Products Corporation, Inc. (APCI). The mixed refrigerant liquefaction systems use a mixture of mostly methane and ethane, about 1.2-2.0/1 mole ratio. Depending on the feed gas composition, up to 3 mol% nitrogen and 6-12 mol% propane may be added to optimize the refrigerant boiling curve. The refrigerant cooling curve is adjusted to follow closely the feed gas cooling curve in order to achieve maximum thermodynamic efficiency. The fundamentals of mixed refrigerant compared to conventional refrigeration are discussed in PEP Report 29G Ethylene Plant Enhancement (2001). One known significant exception to the propane pre-chilling, mixed refrigerant approach is the Phillips Kenai Peninsula plant in Alaska that started up in 1969 [1]. This plant produces about 1.5 million mt/y of LNG by a cascade refrigeration system using pure propane, ethylene and methane refrigeration cycles. The efficiency of this cascade system has been reported to be on the lower end of the scale, about 88% [US 5611216]. However, we understand the plant has proven to be a reliable and profitable operation. Aside from refrigeration cycle as such, an important factor in refrigeration power is the adiabatic efficiency of the refrigeration compressors. It is reasonable to assume that the compressors operated by ConocoPhillips in Kenai, Alaska are more likely to be on the order of 70% as opposed to more modern centrifugal compressors with three dimensional blades that achieve adiabatic efficiencies above 80% and approach 85% as we show later. Over the past several years several patents issued to Phillips seem to suggest an improvement in cycle efficiency results from improved refrigeration load distribution, nitrogen stripping for nitrogen rich gas, open loop methane refrigeration and LPG recovery. Our opinion, on a purely thermodynamic concept, is the overall thermal efficiency of the mixed refrigerant system is slightly higher on a consistent basis (ambient conditions, identical machinery, heat recovery and heat rejection philosophy). Nevertheless, other design related factors, operational flexibility and other considerations, suggest that an objective comparative evaluation could be made only on a case by case basis and on a site specific basis and not on generic liquefaction technology as such nor on liquefaction efficiency or any other single factor [US 5669234, US 5611216 and US 4680041]. 8 PEP REVIEW 2003-15 Our understanding of Phillips’s patents is that their technology is driven by the desire to have an equal load distribution among the propane cycle, ethylene cycle and methane cycle. This load equalization is achieved in part by superheating the methane and ethylene refrigerant vapors fed to the compressors probably to about -46°C (-50°F). This assumed design methodology allows conventional carbon steel metallurgy in these compressors. Design and construction considerations then allow six identical gas turbines, such as frame 5D (nominal 30,000 kw), to be used. Based on other information published by ConocoPhillips, we understand that the more modern design uses open loop methane refrigeration where the methane refrigeration compressor is used also as the fuel gas compressor [4]. Methane is fed as fuel to the gas turbines after cold recovery, thus helping to equalize the loads while avoiding a fuel gas compressor. Based on Phillips U.S. Patent 5,611,216, the estimated power consumption for 38°C (100°F) feed gas at 650 psig, is 371 kwh/ton, assuming very lean gas, say 96 vol% methane, at an unreported heat rejection temperature but based upon Phillips brochures, speculated to be 38°C (100°F) [4]. This estimate probably includes 15 kwh/ton of fuel gas compression. Based on the above, it is our judgment the drawbacks of load equalization could be up to 5% additional refrigeration power and, in case of fixed speed gas turbines, an actual reduction in production capacity. Further, based on a patent and other information published by ConocoPhillips, we believe that this could result in more complex refrigeration cycle where the propane cycle, ethylene cycle, and methane cycle are more heat integrated [US 5611216, 4]. Nevertheless, at the end, we believe the concept of cascade refrigeration is very sound. In our approach we judged that the older closed loop methane refrigeration as used by Phillips in Kenai could have an advantage by allowing higher suction pressure to the methane compressor, about 1.7 kg/cm2-a (24 psia) instead of an estimated 1.1 kg/cm2-a (16 psia) for an assumed open loop compressor. Only one electric motor driven fuel gas compressor is used for both trains. In case of outage of the fuel gas compressor, back up is provided by a draw from the feed gas. Our base case design includes superheating of the refrigerant gas to the methane compressor. We also examine an alternate design where the refrigerant gas is not superheated. Some reported experience by The Elliott Company compressing LNG tanker boil off gas at suction temperatures under about –130°C (-200°F) and industrial experience by others compressing nitrogen at –180°C (-292°F) seems to support our suggested alternate approach. Nevertheless, a more conservative approach will call for superheating the suction of the first stage of the methane compressor from about -152°C (-240°F) to about –101°C (-150°F). This will slightly move toward equalizing the loads while increasing the total refrigeration load by 2%. The very conservative potential operator is brought into a “comfort zone” in terms of compressor metallurgy at low temperatures. Based on our proposed approach of using a combined cycle and driving the methane compressors with steam turbines, many of the above issues as applied by ConocoPhillips for the gas turbine power cycle are becoming academic for the combined cycle approach suggested. Further, it is our understanding that the ethylene refrigeration cycle in the ConocoPhillips design, aside from superheating the suction to the first stage to about -46°C (-50°F), comprises only a single side load with a probable goal of obtaining the compression in a single casing. In our approach, no superheating of the suction to the ethylene compressors is employed. Two side loads are used, reducing refrigeration load by 2% and increasing production capacity by 23%. However using two casings somewhat increases our capital investment, possibly by about $5 million. Again, in the proposed approach, no attempt is made to equalize the loads. The loads of the propylene compressor are about 47.3%, the refrigeration ethylene compression loads are about 36.4% and the methane compressor loads are 16.3% of the total refrigeration load. In reality the combined load on the steam turbines may be about 27% of the total motive power in the facility. However 20% of the steam motive power, about 6.2% of the total power, is 9 PEP REVIEW 2003-15 exported on the average as electric power outside the boundary limits. During high ambient temperature times, the start-up steam turbine attached to the gas turbine increases its relative steam consumption and electric power export drops to near zero. The actual production capacity is determined by the performance of the industrial equivalent of GE 7FA turbines installed on the same shaft as the propylene and ethylene compressors. Turbine output as provided by GE is conservatively derated by 2-2.5% from the name plate capacity to show realistic mid life performance. Derating of 4% is possible and typically serves as a performance guarantee by the manufacturer. The generic 4.375 million t/y at 0.95 on stream factor (600 million scf/d) of LNG is simply a result of turbine performance and is related to ambient conditions and perhaps to the mechanical condition of the turbo machinery. In addition to climatic assumptions, several generic assumptions are made as to infrastructure, feed gas composition and LNG specifications. The cost estimate and subsequent economics are highly dependant upon the specific site location but could be adjusted based on variance in infrastructure. The site assumptions, offsites definitions and turbine performances are included in the review. Appropriate adjustments could be made for different site locations and ambient conditions. As said, the total capacity could probably be raised from 4.375 million mt/y to 4.60 million t/y at 0.95 on stream factor by shifting the steam turbine loads from excess power generation to continuous boosting of the gas turbines. In addition to the ConocoPhillips cascade refrigeration processes, Linde AG has developed the Mixed Fluid Cascade (MFC) process where each of the three refrigerants cycles operate in cascade using mixed refrigerant [US 6253574]. This concept is being engineered for the Norwegian North Sea project offshore near Hammerfest and is claimed to be of extremely high thermal efficiency, about 250 kwh refrigeration load per ton of LNG. However, in this project heat is rejected to 5°C (41°F) seawater as opposed to the more conventional 27°C (81°F) in more typical LNG projects in tropical zones. In this temperature range the claimed refrigeration load is more like 330 kwh per ton [2] of LNG as opposed to 333 kwh refrigeration per ton LNG calculated for the cascade refrigeration as proposed in this report with heat rejection at 35°C (95°F) to 27°C (81°F) sea water [1-2, US 5611216, US 6253574]. The MFC process is reviewed in PEP Review 2002-7 (2003). A recent interesting patent by Exxon suggests a new approach for producing pressurized LNG (PLNG) [US 6,016,665]. LNG at about 30 kg/cm2-a and -95°C (410 psig, and -140°F) would be produced by two cascade cycles using propane and ethylene as opposed to the current three cascade cycles comprising propylene, ethylene and methane refrigerants. Producing PLNG is estimated to save 50% or more of refrigeration power compared with LNG, along with avoiding methane refrigeration, which substantially reduces the capital investment for the liquefaction cycle. However, this PLNG concept brings yet unknown issues related to transportation and storage of the PLNG. PROCESS DESCRIPTION In this section, we describe the nominal production of 525 mt/h (4.375 million mt/y at 0.95 on stream factor, 602 MM scf/d) of LNG depending on average ambient air temperature and heat rejection temperature. The feedstock is a lean raw natural gas containing about 92 vol% of methane. The levels of nitrogen and carbon dioxide are also relatively low. The generic process is a conventional cascade refrigeration process. The plant contains two equal capacity trains for gas processing including treating to remove carbon dioxide and water. Liquid petroleum gases are separated into byproduct natural gasoline, mixed C3/C4 LPG and fuel gas in a single train unit. The fuel gas is consumed within the plant. The plant produces all its utilities; about 13,000 kwh of electricity can be sold outside the plant. The process design and utility rates used in this report are based on computations, published information, and nonconfidential information from 10 PEP REVIEW 2003-15 licensors and vendors. The design may or may not be similar to processes licensed or otherwise in use today. The production concept uses two 50% liquefaction trains with General Electric F7A frame or equivalent gas turbines such as the Rolls-Royce Trent model. The performance of the gas turbine is a key factor in establishing the LNG production rate. Waste heat is being recovered as 63 kg/cm2-g, 482°C (900 psig, 900°F) steam from the turbine exhaust gas at about 545°C-300 mm water-g (1,020°F, 12 in. water-g) driving two 50% methane refrigeration compressors and, on a separate shaft, two power generation turbines. All condense at summer conditions of 40.6°C, 57 mm Hg (105°F, 1.1 psia) using seawater at 27°C (81°F) maximum and discharged at 32°C (90°F) maximum. The nominal design capacity is based upon the median production capacities of future LNG plants. This led to using two 50% GE F7A gas turbines, or equivalent, along with two GE, or equivalent, steam turbines operating at full capacity 347 days per year (0.95 on stream factor) with a reasonable expectation to achieve 350 days per year. The result is a nominal 4.375 million mt/y of LNG at nominal atmospheric pressure, -160°C (-260°F). No liquid expanders are used, but in general a liquid expander can reduce energy consumption by 2-2.5% but was judged to offer only a marginal economic advantage. The process flow diagram of the LNG plant, Figure 1 (attached), is shown with the inside boundary limits equipment divided into five sections: • Amine Unit (Section 100), Sheet 1 • Dryers and Mercury Removal (Section 200), Sheet 1 • Liquefaction (Section 300), Sheets 2 and 3 • LPG Fractionation (Section 400), Sheet 4 • Heat Recovery System (Section 500), Sheet 5. The offsite units, not shown in Figure 1, are divided into an additional four sections: • Storage (Section 600) • Marine System (Section 700) • Relief System (Section 800) • General Offsites (Section 900). The design basis and assumptions are summarized in Table 5. The feed gas is characterized in Table 6. The process stream flows are summarized in Table 7 and refrigerant flows are summarized in Table 8. These flows are for the total plant consisting of two trains. The process was modeled using Aspen Technology’s Aspen Plus process simulator, version 11.1-0, built September 20, 2001. The physical properties method was the Soave Redlich-Kwong equation of state method. Major equipment is listed with size and materials of construction in Table 9. On the equipment list, the two trains are identified in the equipment numbers by A and B. The letters C, D and higher indicate multiple pieces of equipment are used per train. The facility is self-contained in terms of electric power, fuel gas and all other utilities. Internal utilities average consumptions are summarized in Table 10. An average of 13,000 KW of interruptible electricity is sold outside the plant. The steam used to generate this power could be shifted to run booster turbines and increase LNG production by 6%. 11 PEP REVIEW 2003-15 Table 5 DESIGN BASIS AND ASSUMPTIONS Plant capacity, scf/sd Nominal 600 million mt/yr Nominal 4.4 On stream factor 0.95 Number of trains 2 (one LPG unit) Site Eastern Mediterranean Elevation, ft 0 (sea level) Barometric pressure, psia 14.7 Relative humidity, % 60 Ambient air temperature, °C (°F) 21 (70) average, 38 (100) maximum Average January temperature, °C (°F) 14.5 (58); low 11 (52), high 18 (64) Average April temperature, °C (°F) 19 (66); low 15 (59), high 23 (73) Average August temperature, °C (°F) 27 (81); low 23 (73), high 31 (88) Average October temperature, °C (°F) 24 (75); low 20 (68), high 28 (82) Cooling water Once through sea water Cooling water temperature, °C (°F) 19 (66) average; 27 (80.6) maximum Sea water maximum temperature rise, °C (°F) 5 (9) With built in capability to 4°C rise Sea water circulation rate, ft/sec 12 maximum Feed gas Lean, sweet natural gas, see Table 6 Acid gas treatment MEA absorption of CO2 Compressor drivers Propylene/Ethylene Gas turbine (GE frame FA7 or equivalent) Methane Steam turbine Fuel gas Electric motor Compressor efficiency: Propylene Ethylene Methane Speed, rpm Stage No. Efficiency 2,600 1 0.837 2 0.842 3 0.838 1 0.824 2 0.847 3 0.844 1 0.775 2 0.788 3 0.814 3,600 8,500 Source: GE, The Elliott Company 12 PEP REVIEW 2003-15 Table 6 FEED GAS CHARACTERIZATION Pressure, kg/cm2-a (psig) 46.6 (650) Temperature, °C (°F) 17 (62.6) Higher Heating Value, Btu/scf 1,095 Composition: Volume % Variance, vol% Nitrogen 0.29 0.1-1.0 Carbon Dioxide 0.47 0.3-1.2 Hydrogen Sulfide 10 ppm 0-50 ppm Methane 91.69 88.0-96.0 Ethane 4.66 2.5-5.5 Propane 1.78 0.8-3.0 Isobutane 0.34 0.2-0.6 n-Butane 0.41 0.2-0.6 Isopentane 0.15 0.1-0.4 n-Pentane 0.10 0.05-0.3 C6+ 0.11 Total 100.00 13 PEP REVIEW 2003-15 Table 7 LNG BY CASCADE REFRIGERATION STREAM FLOWS 3 CAPACITY: 525 MT/H (9,646 MILLION LB/Y OR 602 MILLION SCF/SD OR 17.056 M /SD) LNG AT 0.95 STREAM FACTOR Stream Flows, lb/Hr 1 Mol Wt 2 3 4 Raw Natural Molecular Gas Fresh Sieve Dryer Amine Unit Feed Feed Treated Gas Fuel Gas Water 18.02 659 Carbon Dioxide 44.01 16,214 Nitrogen 28.01 5,833 Methane 16.04 1,062,337 Ethane 30.07 101,144 Propane 44.1 Isobutane 6 CO2 Rich Gas Prechilled Gas 2 47 628 64 64 146 16,004 2 5,833 5,833 0 0 5,824 1,061,082 1,061,082 1,151 105 1,056,040 101,039 101,039 94 10 97,754 56,725 56,673 56,673 47 5 49,825 58.12 14,199 14,189 14,189 10 0 10,377 n-Butane 58.12 17,121 17,110 17,110 10 0 10,980 Isopentane 72.15 7,775 7,770 7,770 5 0 3,062 n-Pentane 72.15 5,703 5,698 5,698 5 0 1,803 Hexane + Heavier 86.18 6,806 6,806 6,806 0 0 747 1,294,516 1,277,205 1,276,266 1,517 16,752 1,236,415 587,183 579,330 578,905 688 7,599 560,828 72,339 71,855 71,802 82 405 70,859 Total, lb/H kg/H lb-mole/H 941 5 14 1 PEP REVIEW 2003-15 Table 7 (Continued) LNG BY CASCADE REFRIGERATION STREAM FLOWS 3 CAPACITY: 525 MT/H (9,646 MILLION LB/Y OR 602 MILLION SCF/SD OR 17.056 M /SD) LNG AT 0.95 STREAM FACTOR Stream Flows, lb/Hr Mol Wt 7 8 9 10 11 12 Raw LPG LNG to Storage LNG Product LNG Tank Flash N2/Fuel Flash Cold Fuel Gas Water 18.02 1 Carbon Dioxide 44.01 62 2 2 0 0 0 Nitrogen 28.01 9 2,839 2,147 692 2,985 3,677 Methane 16.04 5,042 998,451 982,403 16,048 57,589 73,637 Ethane 30.07 3,285 97,743 97,740 3 12 14 Propane 44.1 6,848 49,825 49,825 0 0 0 Isobutane 58.12 3,812 10,377 10,377 0 0 0 n-Butane 58.12 6,130 10,980 10,980 0 0 0 Isopentane 72.15 4,709 3,062 3,062 0 0 0 n-Pentane 72.15 3,895 1,803 1,803 0 0 0 Hexane + Heavier 86.18 6,059 747 747 0 0 0 Total, lb/H 39,851 1,175,829 1,159,087 16,742 60,586 77,328 kg/H 18,076 533,347 525,753 7,594 27,481 35,075 941 67,162 66,137 1,025 3,697 4,722 lb-mole/H 1 15 1 0 0 0 PEP REVIEW 2003-15 Table 7 (Concluded) LNG BY CASCADE REFRIGERATION STREAM FLOWS 3 CAPACITY: 525 MT/H (9,646 MILLION LB/Y OR 602 MILLION SCF/SD OR 17.056 M /SD) LNG AT 0.95 STREAM FACTOR Stream Flows, lb/Hr Mol Wt 13 14 15 16 17 C3+ Natural Gasoline LPG Product C2 Rich Fuel Gas Total Fuel Gas Water 18.02 1 1 0 0 47 Carbon Dioxide 44.01 61 62 0 0 146 Nitrogen 28.01 0 0 0 9 3,686 Methane 16.04 2 0 2 5,040 79,828 Ethane 30.07 119 0 118 3,167 3,276 Propane 44.1 6,737 72 6,628 148 195 Isobutane 58.12 3,858 179 3,630 3 14 n-Butane 58.12 6,179 420 5,709 1 12 Isopentane 72.15 4,733 4,605 104 0 5 n-Pentane 72.15 3,911 3,853 42 0 5 Hexane + Heavier 86.18 6,067 6,049 10 0 0 Total, lb/H 31,669 15,241 16,243 8,369 87,214 kg/H 14,365 6,913 7,368 3,796 39,559 521 201 317 423 5,227 lb-mole/H 16 PEP REVIEW 2003-15 Table 8 LNG BY CASCADE REFRIGERATION REFRIGERANT STREAM FLOWS 3 CAPACITY: 525 MT/H (9,646 MILLION LB/Y OR 602 MILLION SCF/SD OR 17.056 M /SD) LNG AT 0.95 STREAM FACTOR Propylene Refrigerant Ethylene Refrigerant Methane Refrigerant Stream lb/H No. kg/H Stream No. lb/H kg/H Stream No. lb/H kg/H 20 3,338,600 1,514,363 30 1,730,000 784,715 40 615,000 278,959 21 2,850,752 1,293,079 31 625,396 283,675 41 341,036 154,691 22 2,850,752 1,293,079 32 1,351,198 612,893 42 215,437 97,721 23 2,446,704 1,109,806 33 1,104,604 501,040 43 273,964 124,268 24 2,013,637 913,370 34 1,204,604 546,399 44 274 124 25 2,013,637 913,370 35 994,372 451,039 45 215,437 97,721 26 1,706,387 774,004 36 779,588 353,615 46 113,966 51,694 37 779,588 353,615 47 113,966 51,694 38 702,537 318,665 48 92,911 42,144 17 PEP REVIEW 2003-15 Table 9 BASE LOAD LNG BY CASCADE REFRIGERATION MAJOR EQUIPMENT CAPACITY: 9,646 MILLION LB/YR (4,375,300 mt/y) LIQUIFIED NATURAL GAS AT 0.95 STREAM FACTOR EQUIPMENT NUMBER ------------------- NAME ---------------------------------------------- SIZE ---------------------------------------- MATERIAL OF CONSTRUCTION REMARKS ---------------------------------------------------------- ---------------------------------------------------------------------------------- COLUMNS C-101A,B CO2 ABSORBER C-102A,B CO2 STRIPPER C-201A-F MOLE SIEVE DRYER C-202A-D MERCURY ADSORBER C-401 DEETHANIZER, TOP SECTION BOTTOM SECTION C-402 DEBUTANIZER 9 44 11 50 10 15 10 10 6.5 20 13 32 12 52 FT DIA FT T-T FT DIA FT T-T FT DIA FT T-T FT DIA FT T-T FT DIA FT T-T FT DIA FT T-T FT DIA FT T-T SHELL: C.S. TRAYS: SHELL: C.S. TRAYS: SHELL: C.S. PACKING: MOLECULAR SIEVES SHELL: C.S. PACKING: HG ADSORBENT SHELL: C.S. TRAYS: C.S. TRAYS: C.S. TRAYS: C.S. SHELL: C.S. TRAYS: C.S. 9,387 108,621 41,571 56,322 26,820 21,000 BHP BHP BHP BHP BHP BHP 2.5% Cr 2.5% Cr 3.5% Ni ALLOY; STAGE 3, C.S. C.S. C.S. 2.5% Cr 19,200 1,006 10,058 350 BHP BHP BHP BHP C.S. 304 SS C.S. C.S. 20,000 7.5 7,500 11 3,,000 11 3,000 11 3,000 11 200 1 8,200 52 3,800 SQ FT MMBTU/HR SQ FT MMBTU/HR SQ FT MMBTU/HR SQ FT MMBTU/HR SQ FT MMBTU/HR SQ FT MMBTU/HR SQ FT MMBTU/HR SQ FT MMBTU/HR SQ FT MMBTU/HR SQ FT MMBTU/HR SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: TITANIUM 22 VALVE TRAYS, 24 INCH SPACING 25 VALVE TRAYS, 24 INCH SPACING 10 VALVE TRAYS , 24 INCH SPACING 16 VALVE TRAYS , 24 INCH SPACING 26VALVE TRAYS, 18 INCH SPACING COMPRESSORS K-301A,B K-302A,B K-303A,B K-304A,B K-305A,B K-306A,B K-307A,B K-308A,B K-309A,B K-501A-D START-UP/PEAKING TURBINE GAS TURBINE ETHYLENE COMPRESSOR PROPYLENE COMPRESSOR ELECTRICITY GENERATOR METHANE COMPRESSOR STEAM TURBINE METHANE COMPRESSOR FUEL GAS COLD BLOWER FUEL GAS COMPRESSOR AIR BLOWER 3 STAGES 3 STAGES 3 STAGES ELECTRIC MOTOR HEAT EXCHANGERS E-101A-H E-102A,B FEEED GAS/AMINE OVERHEAD EXCHANGER AMINE TRIM COOLER E-103A,B LEAN/RICH AMINE EXCHANGER 1 E-104A,B LEAN/RICH AMINE EXCHANGER 2 E-105A,B LEAN/RICH AMINE EXCHANGER 3 E-106A,B AMINE RECLAIMER E-107A,B STRIPPER REBOILER E-108A,B STRIPPER CONDENSER E-201A,B REGENERATOR GAS COOLER E-301A,B START-UP TURBINE STEAM CONDENSER 22 7 21,000 133 18 AIR COOLER AIR COOLER AIR COOLER PEP REVIEW 2003-15 Table 9 (Continued) BASE LOAD LNG BY CASCADE REFRIGERATION MAJOR EQUIPMENT CAPACITY: 9,646 MILLION LB/YR (4,375,300 mt/y) LIQUIFIED NATURAL GAS AT 0.95 STREAM FACTOR EQUIPMENT NUMBER ------------------- NAME ---------------------------------------------- SIZE ---------------------------------------- MATERIAL OF CONSTRUCTION REMARKS ---------------------------------------------------------- ---------------------------------------------------------------------------------- HEAT EXCHANGERS (CONT.) E-302A-X E-303A,B E-304A,B E-305A,B E-306A,B E-307A,B E-308A,B E-309A,B E-310A,B E-311A,B E-312A,B E-313A,B E-314A,B E-315A,B E-316A,B E-317A,B E-318A,B E-319A,B E-320A,B E-321A,B E-323A,B E-324A,B E-325A,B E-326A-P E-327A,B PROPYLENE CONDENSER 32,000 SQ FT 42 MMBTU/HR POWER GENERATOR STEAM SQ FT CONDENSER 79 MMBTU/HR FEED GAS FIRST CHILLER 17,000 SQ FT 16 MMBTU/HR FEED GAS SECOND CHILLER 30,000 SQ FT 25 MMBTU/HR LNG/FUEL GAS EXCHANGER SQ FT 0.6 MMBTU/HR FEED GAS PRE-COOLER NO. 1 SQ FT 1 MMBTU/HR FEED GAS PRE-COOLER NO. 2 SQ FT 20 MMBTU/HR FEED GAS PRE-COOLER NO. 3 SQ FT 23 MMBTU/HR FUEL GAS COLD RECOVERY NO. 3 SQ FT 1.2 MMBTU/HR FEED GAS LIQUEFIER SQ FT 69 MMBTU/HR FUEL GAS COLD RECOVERY NO. 2 SQ FT 1 MMBTU/HR LNG SUBCOOLER NO. 1 SQ FT 20 MMBTU/HR FUEL GAS COLD RECOVERY NO. 1 SQ FT 1 MMBTU/HR LNG SUSCOOLER NO. 2 SQ FT 19 MMBTU/HR LNG SUBCOOLER NO. 3 SQ FT 20 MMBTU/HR FUEL GAS COMPRESSOR INTERSTAGE SQ FT COOLER 1.7 MMBTU/HR METHANE REFRIGERANT CONDENSER SQ FT 74 MMBTU/HR METHANE REFRIGERANT DESUPERHEATER SQ FT 18 MMBTU/HR METHANE REFRIGERANT COOLER SQ FT 22 MMBTU/HR METHANE COMPRESSOR INLET SQ FT COOLER 6 MMBTU/HR ETHYLENE ECONOMIZER FIRST 25,000 SQ FT DESUPERHEATER 12 MMBTU/HR ETHYLENE ECONOMIZER SECOND 20,000 SQ FT DESUPERHEATER 17 MMBTU/HR ETHYLENE DESUPERHEATER 32,000 SQ FT 36 MMBTU/HR ETHYLENE CONDENSER 30,000 SQ FT 32 MMBTU/HR TURBINE STEAM CONDENSER 100 MMBTU/HR SHELL: C.S. TUBES: TITANIUM ALLOY SHELL: C.S. TUBES: TITANIUM ALLOY SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES:ALUMINUM SHELL: NONE TUBES: C.S. SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES: ALUMINUM SHELL: ALUMINUM PLATES:ALUMINUM SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. TUBES: TITANIUM 19 AIR COOLER PEP REVIEW 2003-15 Table 9 (Continued) BASE LOAD LNG BY CASCADE REFRIGERATION MAJOR EQUIPMENT CAPACITY: 9,646 MILLION LB/YR (4,375,300 mt/y) LIQUIFIED NATURAL GAS AT 0.95 STREAM FACTOR EQUIPMENT NUMBER ------------------- NAME ---------------------------------------------- SIZE ---------------------------------------- MATERIAL OF CONSTRUCTION REMARKS ---------------------------------------------------------- ---------------------------------------------------------------------------------- HEAT EXCHANGERS (CONCLUDED) E-401 E -402 DEETHANIZER OVERHEAD CONDENSER DEETHANIZER REBOILER E-403 DEBUTANIZER REBOILER E-404 NATURAL GASOLINE COOLER E-405 DEBUTANIZER CONDENSER E-406 FUEL GAS/LPG EXCHANGER E-501A,B HRSG SUPSERHEATER TUBES E-502A,B HRSG STEAM GENERATION TUBES E-503A,B HRSG ECONOMIZER TUBES NO. 1 E-504A,B HRSG ECONOMIZER TUBES NO. 2 FURNANCES F-201A,B F-501 DRYER REGENERATION FURNACE AUXILIARY BOILER 2,800 SQ FT MMBTU/HR 7,200 SQ FT MMBTU/HR 4,800 SQ FT MMBTU/HR 1,600 SQ FT MMBTU/HR 24,000 SQ FT MMBTU/HR 1,000 SQ FT MMBTU/HR 31,000 SQ FT 64 MMBTU/HR 110,000 SQ FT 175 MMBTU/HR 32,000 SQ FT 52 MMBTU/HR 32,000 SQ FT 108 MMBTU/HR SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: C.S. TUBES: C.S. SHELL: NONE TUBES: 5% Cr ALLOY SHELL: NONE TUBES: C.S. SHELL: NONE TUBES: C.S. SHELL: NONE TUBES: C.S. 18 MMBTU/HR 375 MMBTU/HR TUBES: C.S. TUBES: 5% Cr ALLOY KETTLE TYPE AIR COOLER, FINED TUBES AIR COOLER FINNED TUBES IN G-501 FINNED TUBES IN G-501 FINNED TUBES IN G-501 FINNED TUBES IN G-501 TANKS T-101 T-601A,B AMINE SURGE DRUM LNG STORAGE T-602 T-603 T-604A-F T-605A-D T-606A,B T-607A,B T-608 LPG NATURAL GASOLINE PROPYLENE REFRIGERANT ETHYLENE REFRIGERANT FRESH WATER DEMINERALIZED BOILER WATER DIESEL FUEL 42,000 GAL 37,800,000 GAL C.S. 9% Ni ALLOY 840,000 840,000 50,000 50,000 5,000 5,000 3,000 GAL GAL GAL GAL GAL GAL GAL C.S. C.S. C.S. C.S. C.S. C.S. C.S. 1,000 800 600 900 42,000 GAL GAL GAL GAL GAL C.S. C.S. C.S. C.S. C.S. 42,000 GAL C.S. 25,000 GAL C.S. 15,000 GAL 25,000 GAL C.S. 3.5% Ni ALLOY 8 DAYS PRODUCTION, DOUBLE WALL WITH PERLITE INSULATION 14 DAYS PRODUCTION 14 DAYS PRODUCTION FOR EMERGENCY GENERATORS PRESSURE VESSELS V-101A,B V-102A,B V-103A,B V-201A,B V-301A,B V-302A,B V-303A,B V-304A,B V-305A,B WATER KNOCK OUT DRUM CO2 ABSORBER OVERHEAD DRUM FUEL GAS SEPARATOR CONDENSATE DRUM HIGH PRESSURE PROPYLENE FLASH DRUM MID PRESSURE PROPYLENE FLASH DRUM LOW PRESSURE PROPYLENE FLASH DRUM RAW LPG SEPARATOR HIGH PRESSURE ETHYLENE FLASH DRUM 20 PEP REVIEW 2003-15 Table 9 (Concluded) BASE LOAD LNG BY CASCADE REFRIGERATION MAJOR EQUIPMENT CAPACITY: 9,646 MILLION LB/YR (4,375,300 mt/y) LIQUIFIED NATURAL GAS AT 0.95 STREAM FACTOR EQUIPMENT NUMBER ------------------- NAME ---------------------------------------------- SIZE ---------------------------------------- MATERIAL OF CONSTRUCTION REMARKS ---------------------------------------------------------- ---------------------------------------------------------------------------------- PRESSURE VESSELS (CONCLUDED) V-306A,B MID PRESSURE ETHYLENE FLASH DRUM LOW PRESSURE ETHYLENE FLASH DRUM HIGH PRESSURE METHANE FLASH DRUM MID PRESSURE METHANE FLASH DRUM LOW PRESSURE METHANE FLASH DRUM LNG FLASH DRUM RAW LPG FLASH DRUM DEETHANIZER REFLUX DRUM DEBUTANIZER REFLUX DRUM CONDENSATE DRUM HRSG STEAM DRUM DEAERATOR AUXILIARY BOILER STEAM DRUM V-307A,B V-308A,B V-309A,B V-310A,B V-311A,B V-401 V-402 V-403 V-501A,B V-502A,B V-503A,B V-504A,B 20,000 GAL 3.5% Ni ALLOY 15,000 GAL 3.5% Ni ALLOY 30,000 GAL 3.5% Ni ALLOY 15,000 GAL 304 SS 7,000 GAL 304 SS 30,000 800 800 2,200 7,000 10,000 12,000 10,000 GAL GAL GAL GAL GAL GAL GAL GAL 304 SS C.S. C.S. C.S. C.S. C.S. C.S. C.S. MISCELLANEOUS EQUIPMENT M-301A,B M-302A,B M-501 SCREEN AIR FILTER STACK 15 FT DIA, BASE 50 TALL C.S. HEAT RECOVERY STEAM GENERATOR DEMINERALIZER (OR DESALTATION UNIT) 100 GPM C.S. SECTION --------------- OPERATING BHP ------------------------- SPECIAL EQUIPMENT S-301 COLD BOX PACKAGED UNITS G-301 G-501A,B G-502A,B PUMPS 100 200 300 400 500 600 700 OPERATING ------------------4 0 4 6 4 20 8 SPARES -------------8 1,620 4 6 2 10 2 200 60 2,000 9,770 17,600 21 PEP REVIEW 2003-15 Table 10 LNG BY CASCADE REFRIGERATION UTILITIES SUMMARY 3 CAPACITY: 525 MT/H (9,646 MILLION LB/Y OR 602 MILLION SCF/SD OR 17.056 M /SD) LNG AT 0.95 STREAM FACTOR Superheated Steam, Fuel Gas, a Section MM Btu/H (900°F), lb/H Electricity, kw c 76,000 1,200 d 200 36 300 1,640 x e 400 Battery Limits Total 900 psig, 482°C saturated, lb/H b 100 500 Steam, 100 psig f 500,000 7,600 12,000 x x (start up) ______ _______ 1,500 1676 88,000 500,000 10,300 g 600 595 700 11,300 h 800 x 900 x x 74 350 All Other Total Offsite plus Other 74 ______ _______ 12,230 Export _____ ______ _______ 13,000 Total Average Use 1,750 88,000 500,000 35,530 a Lower heating value. b Average; 194,000 lb/H when processing maximum CO2 content feed gas. c At average CO2 content raw feed gas; 2,000 kw at maximum CO2 feed gas. d x indicates consumption is included in “all other” category. e At 27°C (81°F). f Maximum. g LNG and other product pumps average running 10% of the time. Peak load is 5,950 kw. h Spare sea water pumps off; 16,400 kw with spare pumps running. 22 PEP REVIEW 2003-15 Section 100 – Amine Unit Raw natural gas feedstock at an average 17°C (63°F) and 650 psia enters one of the two trains at its amine unit (Figure 1, sheet 1) where acid gas (CO2 and H2S) is removed following free water separation (V-101). The feed gas is then heated to 36°C (97°F) by exchange in E-101 with treated gas prior to entering the CO2 absorber (C-101) and being contacted with solvent, in our case, monoethanol amine (MEA). (For reasons of consistency, a generic MEA for CO2 removal system is shown; similar configurations could apply to diethanol amine (DEA), diglycol amine (DGA), methyldiethanol amine (MDEA) and other solvents.) Using 20 wt% MEA (0.35 mol CO2/mol MEA), CO2 is removed to under 50 ppm. On leaving the absorber at 50°C (122°F), the CO2 free natural gas heats the feed gas while being chilled to 23°C (73°F). Entrained liquid MEA is separated from the treated gas (V-102). The gas will next be dried. Meanwhile, MEA solution is charged to the absorber at about 46°C (115°F). The CO2 rich solution leaves the bottom of the absorber at about 38°C (100°F) and is reduce in pressure to about 100 psia. Light hydrocarbon gases dissolved in the MEA solution separate in V-103. The gases are scrubbed with lean MEA solution and sent to the fuel gas system. The rich solution is heated by a series of exchangers (E-103 to E-105) with 122°C (252°F) lean solution from the bottom of the CO2 stripper (C-102). CO2 is stripped from the MEA solution with vaporized lean solution either from storage (E-106) or from a reboiler (E-107). The stripper is refluxed with a small amount of make up water (about 18 lb/H) added at the cooler (E-108). CO2 rich gas is vented at 54°C (129°F). Section 200 – Dryers and Mercury Removal The natural gas feed is next dried by molecular sieve beds (C-201). Of the three beds, one is in service, one is held ready for service and one is being regenerated by stripping with hot (F201) natural gas. Water condensed (E-201) from the wet regeneration gas flows to the amine unit (Section 100) to supply make up water. Many natural gases around the globe are known to contain traces of mercury that is harmful to aluminum alloy in the downstream cryogenic section. Mercury removal is necessary for safety due to corrosion of cryogenic aluminum heat exchangers. Adsorption beds are used for trace mercury removal. The “mercury free” gas then proceeds to the liquefaction section. Section 300 -- Liquefaction Liquefaction is conducted in four steps: (1) prechilling by heat exchange with pure liquid propylene refrigerant, (2) separating raw liquid petroleum gas, (3) cryogenic cooling and condensing using successively colder pure liquid ethylene and methane refrigerants and (4) flashing methane vapor from the liquid. For economy, the refrigeration loops are cascaded, i.e., seawater cools the high pressure propylene, propylene cools the high pressure ethylene and ethylene cools the high pressure methane. The prechilling occurs in large kettle type exchangers. The cryogenic exchange occurs in aluminum plate-fin exchangers located in an insulated cold box. Dry treated feed gas enters the chilling train of the gas liquefaction section to be cooled by two propylene refrigeration levels in kettle type heat exchangers. The feed gas at 23°C (73°F) and 610 psia is first cooled by exchange with propylene refrigerant at –4°C (24°F) in E-304 to – 1°C (30°F) and again to –31°C (-24°F) with –32°C (-25°F) propylene (E-305) (Figure 1, sheet 2). Much of the C3+ raw liquid petroleum gas is condensed and separated in knock out drum V-304. The liquid is separated into saleable byproducts in Section 400 while the vapor, now meeting the 23 PEP REVIEW 2003-15 natural gas C5+ heavies specification, proceeds to the cold box for deep refrigeration via ethylene and methane refrigeration. The three-stage propylene compressor does the propylene refrigeration work. Propylene is flashed to three successively lower pressures (V-301 to V-303) to provide three refrigerant levels. Both the propylene and ethylene compressors (K-304 and K-303 respectively) are driven by a large gas turbine (K-302). Heat is recovered from the turbine exhaust (about 545°C, 1020°F) in Section 500. The ethylene compressor stages 1 and 2 share the same case; the third stage is separate. The train is started up with a steam turbine (K-301). The driving steam is condensed by exchange with seawater (E-301) that is chlorinated (G-301). Seawater also cools the high pressure propylene refrigeration loop (E-302) and also condenses (E-303) steam from the electricity generator (K-305). The bulk of the liquefaction occurs in the ethylene refrigeration cycle while the methane refrigeration cycle provides the sub cooling duty. Gas enters the cold box (Figure 1, sheet 3) at 32°C (-26°F) and sub-cooled liquid leaves the box at -152°C (-241°F) and 36.5 kg/cm2-a, (520 psia). In the cold box, the gas is cooled by a series of heat exchanges in aluminum plate-fin exchangers (E-307 thru E-316) with successively colder refrigerant loops and cold fuel gas. As mentioned, three-stage compressor K-303 drives the ethylene refrigeration system. Most of the heat of compression is removed by cooling with propylene between stages 2 and 3 (E-323 and E-324) and at high pressure (E-325 and E-326). Ethylene is flashed at three successive pressures (V-305 to V-306) to obtain the three temperature levels. The methane compressor (K307) is steam driven (K-306). Seawater condenses the steam (E-327). Stages 2 and 3 are in one case. The inlet temperature is heated to –101C (-150F) by exchange with a slip stream of the natural gas (E-321) to allow the compressor to be made of less expensive metal. Most of the heat of compression is removed by exchange with ethylene (E-318 to E-320). Again the methane is flashed to three successively lower pressures (V-308 to E-310) to obtain three temperature levels. On leaving the cold box, the sub-cooled liquid flashes at 1.3 kg/cm2-a (19 psia) in flash drum V-311 prior to entering to LNG storage tank at 1.1 kg/cm2-a (16 psia). The flash tank provides protection to the storage tank and also pre-flashes most of the nitrogen prior to storage. For high nitrogen content feedstocks, perhaps pre-flashing at 4-5 kg/cm2-a (55-70 psia) would be preferable prior to flashing at 1.3 kg/cm2-a (19 psia). The flashed gas and vapor boiled off from the tanker during loading are combined and compressed to 1.9 kg/cm2-a (27 psia) prior to recovering the “cold” by exchange with the gas in the cold box (E-314, E-312, E-310, E-307). Flashed gas after cold recovery at about –31°F (35°C) is being compressed by K-309, using electric motor drivers to about 21-23 kg/cm2-a (299330 psia) and used as turbine fuel. Interstage (E-317) to about 38-49°C (100-120°F) is provided depending upon the ambient air temperature. The flash temperature (first stage of methane refrigeration) is continuously adjusted to provide the correct amount of fuel gas needed for the gas turbines (K-302). Section 400 – LPG Fractionation The raw LPG at –32°C (-25°F) 594 psia is preflashed to remove light gases (V-401, Figure 1, sheet 4). Ethane rich gas and occasionally distillate are separated from the flashed liquid by distillation (C-401). Overhead vapor is partially condensed (E-401) and vapors separated from the liquid (V-402), which is normally all returned to the column as reflux. Steam (nominal 50 psig) to reboiler E-402 provides energy for the separation. 24 PEP REVIEW 2003-15 The C3 and heavier bottoms are fractionated in debutanizer C-402 to produce C3/C4 LPG distillate and natural gasoline bottoms products. Overhead vapor is usually totally condensed (E403) with reflux drum V-403 handling surges. The LPC distillate product is cooled to about 35°C (95°F) by exchange with the fuel gas product (E-406) and stored offsite (Section 600). The natural gasoline product is cooled by air cooler E-404 to about 49°C (120°F) depending upon the ambient temperature and stored offsite (Section 600). Section 500 – Heat Recovery System Heat in the turbine exhaust (From K-302, sheet 2) is recovered by steam generation (Figure 1, sheet 5). Steam at 63 bar-g and 480°C (900 psig and 900°F) would represent a class break point and thus was selected. Steam at 63 kg/cm2-g (900 psig) is fed to four turbines driving the two 14,300 kw methane compressors and two nominal 20,000 kw power generators. Steam at about 8.0 kg/cm2-g (114 psig) is uncontrollably extracted as a heat source for the MEA regeneration (Figure 1, sheet 1) and LPB fractionation (Figure 1, sheet 4). Turbine exhaust at about 545°C (1020°F) and 12 in water-g flows to heat recovery steam generator (HRSG) G-501. The exhaust gas leaves the HRSG at 182°C (360°F) and flows to stack M-501. Condensate at about 40°C (104°F) from condensate drum V-501 is pumped at about 115 psia through HRSG coils E-504 and preheated to about 145°C (290°F). The condensate is then deaerated (V-502) along with demineralized or desalted make up water from G-502. The deaerated boiler feed water is pumped at 1115 psia through the HRSG at coils E503 into steam drum V-502 at 965 psia. Liquid water from the steam drum circulates through coil E-502. Steam from V-502 is superheated to 482°C (900°F) and flows to users at 915 psia. For start up and peak loads, auxiliary boiler F-501 with steam drum V-504 generates 915 psia, 482°C (900°F) superheated steam. The auxiliary boiler is a packaged unit. Section 600 – Storage Storage is provided for LNG product, LPG and natural gasoline byproducts, amine and the propylene and ethylene refrigerants. Two LNG storage tanks, each 145,000 M3 (900,000 bbl) are double walled, insulated and further contained by concrete walls. Each tank is installed with four 3,000 M3/hr send out pumps. LPG is stored in two 20,000 bbl tanks with a refrigerated vapor recovery system. Natural gasoline is stored in two fixed roof 20,000 bbl tanks also having vapor recovery. Make up amine is stored in two diked 1,000 bbl tanks. Make up propylene is stored in six bullets each holding 50,000 gal under about 275 psia pressure. Make up ethylene is stored in four refrigerated bullets each holding 50,000 gal at about 265 psia and –34°C (–30°F). Also, fresh water and demineralized boiler feed water are each stored in two 5,000 bbl tanks. A 3,000 bbl diesel fuel tank is provided to fuel the two 1,600 kw emergency power generators. Section 700 – Marine System A 1,500 meter long jetty with appropriate support structures is provided for loading LNG onto ships (not included). The jetty pipe rack has two LNG lines each 30 in. in diameter. Two vapor recovery lines are 20 in. diameter each. LPG and natural gasoline are loaded through two 10 in. and two 8 in. diameter lines respectively. Two refrigerant make up lines of 3-1/2 nickel alloy are 4 in. diameter. Two 4,000 volt electric cables for the sea water pumps each carry 8,000 kw. The cost of the seawater coolant (shown in Section 300, Figure 1,sheet 3) is also accounted as part of the marine system. Two seawater intake suction lines buried 15 ft below seawater 25 PEP REVIEW 2003-15 surface are 7 ft I.D. coated carbon steel pipes. Two pumping structures have 5 pumps on each structure. Driven by 2,500 Hp motors, each can pump 45,000 gpm. Also included are a pump house and a pump control center. The seawater is screened, chlorinated, filtered and transferred via two 7 ft diameter concrete pipes laid under the water. The cooling seawater is returned to the sea through two 1000 meter water discharge lines, 7 ft each, made of coated concrete laid under water. Section 800 – Relief System Two flare lines are provided. The cold flare line is 24 in. in diameter, 500 m (1,500 ft) long, and insulated. The larger warm flare line is 30 in. diameter and the same length. The two flare stacks are 50 m (150 ft) tall. Section 900 – General Offsites General offsites includes roads and general infrastructure and such items as process and sanitary drain systems, telecommunications, control building including a digital control system and auxiliary, craft shops, control laboratory. Fire protection and ballast water systems are also general offsite items. Emergency power is provided by two 1,600 kw diesel generators. A nitrogen generation package supplies 40 tpd (800 scfm) of 99.5% purity nitrogen. Back up is provided by 800 ton (1,000 m3) of liquid nitrogen. The evaporator uses sea water. Instrument air is compressed at 800 scfm by two 250 kw (335 Hp) compressors. PROCESS DISCUSSION Our grass-roots LNG plant is conceptually designed using ambient and cooling air and water temperatures for a subtropical region (Table 5). Our general turbo machinery configuration is two half plant capacity turbines in parallel, one in each train. Thus a forced or planed shut down of a gas turbine will result in a 50% reduction in LNG production. Whereas in a propane pre-cooled, mixed refrigerant system, the drivers are arranged in series. For example, in a typical 4.5 million mt/y LNG plant, a single frame 7 turbine is dedicated to low pressure and mid pressure mixed refrigerant service and a single frame 7 is used for high pressure mixed refrigerant and propane compression. Then a forced or planed shut down of any turbine results in 100% production loss. On this basis the common on stream factor is elevated from 340 days per year (0.93) to 347 days per year (0.95). The ConocoPhillips process utilizing 6 turbines will have some advantage in this respect since an outage of a single turbine will still allow production in excess of 60-65% of the name plate capacity. Plant Capacity The capacity range is determined by market outlook as mentioned in the LNG Market Overview section. The ultimate plant capacity is determined by matching the performance of available turbine driver configurations. On a generic basis we decided upon two 7FA GE turbines or equivalent, one in each train. A gas turbine is used for propylene and ethylene refrigeration while steam turbines were used for methane refrigeration and power generation. In our design, a forced or elective shut down of a given gas turbine will reduce production by 50% unlike the ConocoPhillips six half capacity frame 5D concept which could allow perhaps over 60-65% production in the event of a forced shut down of a gas turbine. Nevertheless, we believe that gains from reducing the number of turbines out weigh the reduction in flexibility. 26 PEP REVIEW 2003-15 The gas turbines are equipped with start up turbines running on steam from the auxiliary boiler. The start up turbine could be used to boost capacity when the gas turbine is de-rated due to high ambient temperatures. Furthermore, operation of the auxiliary boiler (250,000 lb/hr 900 psig/482°C (900°F) steam) will allow one to maintain higher production at all times. As shown in the design basis (Table 5), the average ambient temperature is assumed to be 21°C (70°F). Since the speed of the gas turbine is fixed, the maximum sea water temperature, 27°C (81°F) in our case, sets the discharge pressure of the propylene refrigerant. No credit could be taken for lower seawater temperatures. Since the average ambient air temperature in August is 27°C (81°F), gas turbine performance declines by 4.5% with respect to the average. Running the startup booster steam turbine could make this deficiency. Conversely, the average January temperature is 14.5°C (58°F); thus turbine performance increases by 5%. The average daily variance of 7°C (12.6°F) represents about 5% of turbine performance. Feed Gas The feed gas composition (Table 6) does not necessarily represent the gas composition in any subtropical location. This is a lean gas (92.1 vol% methane) also low in CO2 and nitrogen that would be a good representative composition for a majority of global locations. Our conceptual design will not be affected by C2+ contents under 15 vol% nor by CO2 or nitrogen contents under 3.0 vol% each. This design would be applicable to the great majority (over about 80% of world’s stranded gas) of the potential market. High nitrogen content, say above 3.0 vol%, may require a second, higher pressure flash stage. Any significant H2S content will require incineration of the CO2 vent gas and, at some locations such as Qatar, the installation of sulfur recovery units. Over time as a gas field ages the gas supply pressure decreases and the CO2 content increases. In our case the pressure is initially assumed to be about 800 psia. Our 650 psig supply pressure and 0.47 vol% CO2 is the mid-life pressure after 10-15 years and average CO2 content. Acid Gas Removal MEA is assumed to be more economical solvent than MDEA for CO2 contents under 1.5 vol%. Each train has an amine unit. A single amine unit serving both trains could be a viable choice as well. However we judged that the savings in capital investment versus the extra reliability and flexibility of two units favored selection of the dual train system. Since the H2S content is very minimal, acid gas could be safely incinerated after stripping from the MEA solution. The CO2 content is reduced to under 50 ppm. Thus DEA, MDEA or another solvent could be selected depending upon the operational preference and general business considerations of the LNG producer. On a global basis, about 35% of LNG plants are using MEA. In our design, the amine unit is sized for 1.2 vol% CO2 in the raw feed gas even though the average is 0.47 mol% CO2. The maximum amine circulation rate is 725 gpm per train based on 1.2 mol% CO2. Circulation based on the average CO2 content is 283 gpm per train. No CO2 is being recovered from amine unit or from the flue gases. However, a high CO2 greenhouse gas emission tax could make CO2 recovery from the amine unit an economically viable option, especially if no H2S is present. The CO2 vent gas is contaminated with hydrocarbons, and incineration of the vent gas in the auxiliary boiler could at time become a viable option especially when traces of H2S are present. 27 PEP REVIEW 2003-15 Nitrogen Removal Since the nitrogen content of the gas is less than 1.0 vol% (0.3 vol%), no particular nitrogen removal is needed. Flashing fuel gas at 1.3 kg/cm2-a (19 psia) in the process and flashing from storage at 16 psia diverts the bulk of the nitrogen into the fuel gas system. In our case, 67% of the nitrogen is flashed to the fuel gas. This however would have no impact on the operation of the gas turbines. Gas drying and mercury removal Molecular sieve gas drying at 23°C (73°F) is used to protect the cryogenic exchangers and piping from any potential freezing. Many natural gases around the globe are known to contain traces of mercury that is harmful to aluminum alloy in the downstream cryogenic section. Mercury in light hydrocarbons is very briefly reviewed in PEP Report 29G Ethylene Plant Enhancement (April 2001) and in PEP Review 91-1-4 Removal of mercury from ethylene plant feedstock and cracked gas streams (July 1992). Mercury removal is necessary for safety due to corrosion of cryogenic aluminum heat exchangers. To remove mercury, the dry natural gas is passed through mercury adsorption beds. Carbon impregnated with sulfur (Calgon Carbon) or silver on alumina is used for vaporous hydrocarbons. Experienced contractors should be contacted about adsorbents and process configurations suitable for specific applications. Refrigeration Cycles The refrigeration cycle was simulated on the basis of the flow diagram shown in Figure 1, sheets 2 and 3, using efficiencies for the compressors (Table 5) and turbines based upon preliminary flow data. The final flow rates are only very slightly different. Because the flow limitation on the assumed propane (used the ConocoPhillips process) compressor becomes a bottleneck, propylene refrigeration is selected in order to shrink the suction volume by 22%. Features of the refrigeration system include: • Two, one for each train, GE Frame FA or equivalent, propylene and ethylene refrigeration gas turbines • Two GE or equivalent steam turbines in a closed methane loop • Two 50% HRSG units generating steam at 63 kg/cm2- g, 480°C (900 psig/900°F) • Two 50% plant capacity GE steam turbines operating on a single steam cycle with a single uncontrolled extraction of steam at a nominal 8 kg/cm2-g (115 psig). Turbine steam is condensed at 41°C (106°F), 1.1 psia by seawater at 27°C to 32°C (to 81°F 90°F). • All the refrigeration loads, totaling about 1,000 MM Btu/H, are calculated on the basis of seawater at 27°C (81°F) and rejecting heat at 35°C (95°F). Selection of the gas turbine is not necessarily easy for any location and situation. Steam turbine drivers, electric motor drivers, combined cycle gas turbine–steam turbine could all be considered. Our design basis is a gas turbine coupled to an exhaust gas heat recovery steam generator to drive both the propylene and the ethylene compressors. A start up booster steam turbine is on the same shaft. As a result of the design basis and the preliminary recommendation of GE-Novo Pingone, the methane compressor is divided into two cases on the same shaft driven at 8,500 rpm by a steam turbine. The ethylene compressor is also split. 28 PEP REVIEW 2003-15 In each train, a General Electric FA7 or equivalent gas turbine drives two refrigeration compressors in series: about 31,900 kw ethylene refrigeration and 41,500 kw propylene refrigeration. A 7,000 kw (9,400 Hp) steam turbine is used for start up as well for load boosting during periods of high ambient temperatures. The estimated gas turbine performance is summarized in Table 11. The compressors have 6 wheels and two side loads. The gas turbine name plate capacity at 21°C (70°F) is 75,990 kw (101,900 Hp). About 660 kw (890 Hp) or 1.6% of power to the propylene compressor is lost through speed reduction thus the real net power available is 75,900 kw (101,000 Hp). De-rating due to refrigeration losses leaks about 230 kw (300 Hp). Mechanical deterioration of 2.3% would suggest a conservative net load of 73,400 kw (98,430 Hp) at 21°C (70°F). The gas turbine fuel consumption is based on 10,730 Btu/h per kw LHV (8,000 Btu/h per Hp) as suggested by GE. This is the basis for the fuel gas consumption and the set point of the flash gas, which controlled by the terminal temperature of the sub-cooling section in the cold box, calculated at –152°C (-242°F). The gas turbine is at the core of the design philosophy, and clearly demonstrates that availability of turbo machinery is a key factor in the establishing the design basis. A Frame 5 variable speed turbine has higher NOx emission (about 100 ppm) that in some locations would require a de-NOx process. The 25 ppmv NOx emission with the Frame 7 turbine does not require NOx removal. Based on our cost estimate, we are considering that the combined cycle mode, as suggested, represents a lower capital investment per ton of LNG compared with using exclusively gas turbine drivers commonly practiced in the industry. Furthermore, the combined cycle mode presents the higher efficiency, lower CO2 greenhouse gas emissions and probably all together the most economical configuration, at least in our case. Some locations may need to obtain fresh water for the combined cycle’s steam production and for employees from a packaged desalination unit instead of demineralizing water. Integration of desalination and power generation is very commonly practiced. 29 PEP REVIEW 2003-15 Table 11 ESTIMATED PERFORMANCE OF GAS TURBINE (FRAME 7) Load Condition Base Base Base Base 4. 4. 4. Inlet Loss in H2O 4. Exhaust Pressure Loss in H2O 12.0 Ambient Temperature °C (°F) 15 (59) Fuel Type Methane 12.0 12.0 20 (68) Methane 12.0 28 (82.4) Methane 40 (104) Methane Fuel LHV Btu/lb 21,515 21,515 21,515 21,515 Fuel Temperature °C (°F) 26.7 (80) 26.7 (80) 26.7 (80) 26.7 (80) Output Hp 106,630 102,690 96,430 87,130 Heat Rate (LHV) Btu/Hp-H 7,925 8,000 8,140 8,410 Heat Cons. (LHV) MM Btu/H 845.0 821.5 784.9 732.8 2234 2179 2090 1959 549 (1020) 553 (1028) 560 (1040) 569 (1057) 3 Exhaust Flow x10 lb/H Exhaust Temperature °C (°F) Exhaust Loss in H2O Application 12.0 @ ISO conditions Mechanical Drive Combustion System DLN Combustor a Emissions NOx at 15% O2 ppmv 25. 25. 25. CO ppmv 15. 15. 15. 15. Source: GE a Emission information is based on GE’s recommended measurement methods. NOx emissions are corrected to 15% O2 without heat rate correction and are not corrected to ISO reference condition per 40CFR 60.335(a)(1)(i). NOx levels shown will be controlled by algorithms within the SPEEDTRONIC control system. The side loads of the propylene refrigeration, -4°C (+25°F) and +17°C (63°F), were determined by turbo machinery analysis and wheels configuration provided by Novo Pingone. A different machinery design could result in different side loads conditions. The ethylene and methane refrigeration cycles use plate-fin core aluminum exchangers packed into a cold box with total weight of not to exceed 1,000 ton and no less than 2 cold boxes. Budgetary quotations and technical recommendations by Chart Industries, La Cross, Wisconsin, and their agent, SME Associates, Houston, are incorporated in the design of the cold box. The aluminum exchangers dictate mercury removal beds prior to the gas chilling train as discussed previously. Refinery grade propylene, typically 95 wt% propylene and 5 wt% propane, could be acceptable as the refrigerant. Heat Rejection The seawater circulation piping was sized to a maximum velocity of 12 ft/second due to concerns of erosion. At the current design, the maximum temperature rise is set at 5°C (9°F) 30 PEP REVIEW 2003-15 however it is recognized that in some locations a maximum rise of 3.5-4.0°C (6-7°F) is allowed. If the two spare sea water pumps would be run, the total circulation will increase by 25%, the temperature rise will be controlled at 4°C (7°F) and the velocity at the pipes will reach 11.6 ft/sec. All heat is rejected to sea water. The constant speed gas turbine drive calls for a propylene refrigerant pressure of 220 psia based on a maximum sea water temperature of 27°C (81°F). Propylene is condensed at 35°C (95°F) and turbine steam condenses at 41°C (105°F). The maximum ambient air temperature along the Eastern Mediterranean coast, for example, is about 38°C (100°F) and this sets the discharge pressure of the propylene compressor if air cooling is applied. For an air cooler condenser, this would require a minimum propylene condensing temperature of about 50-52°C (122-125°F) and a discharge pressure of about 300-310 psia. Compression power increases by 7,000-7,500 kw per gas turbine and booster steam turbine train of 73,000 kw thus reducing LNG production by 10%. The avoided sea water circulation per refrigeration train would be 110,000 gpm, about 4,000 kw of circulation power. On the other hand, the air cooler fans for 500 MM Btu/hr heat rejection per production train would consume 4,000 kw as well. The economics of this design decision are briefly discussed below in the section “Capital Cost”. Steam and power generation One HRSG (Heat Recovery Steam Generation) system is used per train (Figure 1, sheet 5). Each HRSG is dedicated to one gas turbine. About 250,000 lb/hr of steam at 900 psig, 482°C (900°F) is generated. Although a single 500,000 lb/hr steam HRSG is possible, we believe the extra duct work, hot by pass stack and on stream time considerations could not be justified for the marginal savings. The auxiliary start up boiler, 250,000 lb/hr capacity, will provide the back up steam needed for methane compression in the event the HRSG is by passed. The auxiliary boiler also can provide boosting capacity for the gas turbine during high ambient temperatures. Two nominal 20,000 kw, 22,000 kw design capacity, power generators are assumed, thus dependence on the local electricity grid is avoided in the event one generator is forced to shut down (Figure 1, sheet 2). Under the normal scenario, the facility is self sufficient in electric power. The generator size allows for 13,000 kw of power to be exported to nearby users, probably under an interrupting power purchase contract. If sale of excess power becomes a very valuable source of revenue, a steam pressure of 1,500 psig should be given consideration. The power generator steam turbine also produces the low pressure steam consumed in the amine and LPG Fraction sections (Figure 1, sheets 1 and 4). Uncontrolled extraction steam at about 100 psig is higher than the 50 psig steam the process requires. As the flow rate slows down, the extracted steam pressure decreases. Controlled extraction is very expensive and not required for this application. LPG Fractionation Liquefied petroleum gas (LPG) removal is required to meet the LNG specifications for C5+ heavies and heating value. Since the feed gas is very low in nitrogen and CO2 while lean in C2+, a generic LPG recovery is selected and the nitrogen stripping step is avoided. Ethane separation from the raw LPG is not incorporated in our design. Instead, ethane rich gas from LPG fractionation is routed to the turbine fuel system. This is due to the fact that only a small quantity of ethane must be recovered to meet the LNG specifications. Our higher heating value of the LNG is 1,091 Btu/scf, just below the specification maximum of 1,100 Btu/scf, and essentially unchanged from the raw natural gas feedstock (1,095 Btu/scf). Our recovery of 31 PEP REVIEW 2003-15 ethane and propane is only 3.4 wt% and 12.2 wt% respectively. Recovery of ethane and propane for sale as petrochemical feedstock is easier to do during regasification of the LNG at the receiving terminal. The pressure of the deethanizer column is set to allow at least sufficient fuel gas pressure to the gas turbines. In the event that the LPG unit is forced to shut down, crude LPG after flashing light ends, can be routed to storage or to flare. For rich gas of 85 vol% methane, the LPG production rate may increase by a factor of four, which would then control the design of the LPG fractionation section. LNG storage and loading capacity LNG storage and loading capacity is a key investment item that will change drastically depending on location and LNG delivery contract. For an location where the bulk of the product is delivered to a market a relatively short distance, about 2,000 miles, two LNG tanks (145,000 M3, 900,000 bbl) seem appropriate considering the maximum capacity of LNG tankers and the average tanker capacity of 750,000 bbl. We assume the double containment tanks with an outer shell of concrete would be 25-30% more expensive than single containment tanks. However double containment reduces plot area if dikes can be avoided and also increases safety. The basis of storage capacity is nominal 8 days flexible capacity. If more marketing flexibility is required, to reach farther markets for instance, a third LNG tank could become reasonable. The bottom line is simply stated: just like with turbine selection, storage capacity, flexibility, safety and on stream factor are inter-related to capital investment. LNG tanker loading is assumed to take under 16 hours. On this basis, the evacuation rate is 9,000 M3/hr per tank, using 7 bars pressure drop (40,000 gpm, 100 psi). Each tank is equipped with four (3+ spare) 3,000 M3/hr, 750 kw pumps. All vapors displaced from LNG tankers during loading, 12-16 hours per send-out cycle, is recycled to LNG storage. Heat leakage into the tankers is accounted as general refrigeration losses. Design Cases The gas turbine limits the plant’s feedstock rate. Allowing for losses due to gears, refrigeration losses and mechanical deterioration discussed previously, the maximum power at 21°C (70°F) ambient temperature is 98,430 Hp. The propylene compressors and stage 3 of the ethylene are made of conventional carbon steel. Stages 1 and 2 of the ethylene compressors are made of fine grain carbon steel (3.5% Ni). In the base case design, the feed to the first stage of the methane compressor is superheated to –101°C (-150°F) in order to use less expensive metallurgy. Without superheating, the methane compressor is made of 304 SS at double the cost of a conventional carbon steel compressor. With superheating, fine grain carbon steel (3.5% Ni) is used at about 15% more cost than conventional carbon steel for the same suction volume compressor. At constant plant fresh gas conditions, superheating reduces the work of the propylene compressor while shifting more of the load to the ethylene and methane compressors (Table 12). The net result is a reduction of 230 Hp (0.29%) in the gas turbine load from 98,660 Hp without superheating to 98,430 Hp. The methane compressor load increases by 2,200 Hp (12.9%) from 17,000 Hp to 19,200 Hp. The LNG production rate decreases slightly with superheating (0.3 mt/H) while the LPG recovery is unchanged (fuel gas is higher). The sensitivity of the process to feedstock inlet pressure and to feedstock methane content are also shown in Table 12. For the fresh feed gas supply pressure at 775 psig, as occurs when 32 PEP REVIEW 2003-15 the plant is new instead of our average design pressure of 650 psig, reduces the gas turbine power usage by 2,040 Hp (1,520 kw) or 2%. The fresh feed rate could be increased slightly. Assume the raw natural gas feed composition were richer, methane content dropping from 92 vol% to 85 vol% with constant distribution of the C2 and heavier hydrocarbons, CO2 and nitrogen. Loading the gas turbine drive, the fresh feed rate increases to 644.1 mt/H. The LNG production rate is essentially unchanged, increasing by 1.1 mt/H to 526.9 mt/H. Raw LPG increases by 66.5 mt/H (370%) to 84.6 mt/H from 18.0 mt/H. The C3/C4 LPG product is estimated to increase to 34.5 mt/H from 7.4 mt/H. Natural gasoline production similarly increases to 32.3 mt/H from 6.9 mt/H. The methane compressor load is reduced by 660 Hp (3.5%) from 19,200 Hp to 18,535 Hp. If the rate of fresh feed is held constant at 5,789 mt/H, the gas turbine is unloaded and the power drops 7,305 Hp to 91,125 Hp from 98,430 Hp. In this case, the rates of the C3/C4 LPG and natural gas by-products are estimated to be 30.98 mt/H and 29.07 mt/H respectively. 33 PEP REVIEW 2003-15 Table 12 SUMMARY OF REFRIGERANT COMPRESSOR POWER REQUIREMENTS Lean Gas________________________ Cold C1 High Feed Gas Compressor Pressure Inlet Base Case Fresh Feed, vol% C1 Fresh Feed Supply, psig Plant Fresh Feed, mt/H Methane Compressor Inlet, °C (°F) Rich Gas_________________ Loaded Compressor Unloaded Compressor 92.1 92.1 92.1 85.0 85.0 650 650 775 650 650 578.9 578.9 578.9 644.1 578.9 -101 (-150) -153 (-243) -101 (-150) -101 (-150) LNG, mt/H 525.8 526.1 -101 (-150) 523.2 526.9 473.2 LPGa. mt/H 18.05 18.05 19.37 84.57 76.01 Refrigerant Stage Methane 1 3,876 2,849 3,819 3,871 3,867 2 5,226 4,559 5,144 5,043 4,653 3 10,097 9,594 9,871 9,621 8,769 Total 19,199 17,002 18,834 18,535 17,289 1 8,642 8,977 7,256 8,083 7,739 2 12,022 12,466 10,548 11,752 11,095 3 22,095 21,889 22,830 21,906 19,706 Total 42,759 43,332 40,634 41,741 38,540 1 19,605 19,606 20,377 19,987 19,034 2 19,003 18,814 18,647 19,334 17,646 3 17,063 16,907 16,732 17,368 15,905 Total 55,671 55,327 55,756 56,689 52,585 98,430 98,659 96,390 98,430 91,125 117,629 115,661 115,224 116,965 108,414 328 328 331 342 Ethylene Propylene ____________________Power, Hp per train_______________________ Total, C2 + C3 Total , per train Plant kwH/mt LNG a Raw LPG stream separated. 333 34 PEP REVIEW 2003-15 COST ESTIMATE In the following subsections, we discuss the investment and operating costs for a grassroots LNG plant located on the U.S. Gulf Coast. Capital and operational cost factors must be applied to estimate the capital costs and operating costs for realistic locations. The plant treats and liquefies raw natural gas feedstock supplied by pipeline downstream of a slug catcher. The plant uses a closed loop cascade refrigeration circuit with pure propylene, ethylene and methane refrigerants. The base case plant capacity is a nominal 525 mt/h (4.375 million mt/y at 0.95 on stream factor, 600 MM scf/d) of LNG. The feedstock is a lean raw natural gas containing about 92 vol% of methane and relatively low nitrogen and carbon dioxide contents. The plant contains two equal capacity trains for gas processing including treating to remove carbon dioxide and water. The plant produces all its utilities; about 13,000 kwh of interruptible electricity is sold outside the plant. An U.S. Gulf Coast plant location is assumed for capital cost estimation; additional shipping charges and a construction cost factor can be applied for other locations. Grassroots construction on a cleared, level site with utilities access is assumed. Overnight construction is also assumed, that is, there is no allowance for finance interest or price escalation before or during construction. Licensee fees are also excluded. On the basis of published data the capital investment for 600 million scf/d cascade refrigeration plant built with two trains of 300 million scf/d is very competitive with a propane precooled mixed refrigerant plant built in a single train of 600 million scf/d. The proposed cascade plant can be expanded by adding a train or reduced in half by building only one train. Because of the parallel train configuration, one achieving a modular capacity of 300 MM Scfd LNG the cost per production unit is almost linear. This is certainly not the case with the precooled mixed refrigerant process where the cost of a 600 million scfd plant is considerably lower than the cost of two 300 million scfd plants. Therefore one advantage of the evaluated cascade scheme is an additional modular production of 300 million scfd could be added at a very competitive investment cost, compared with the mixed refrigerant process, when the market develops. Production cost and some equipment costs are estimated using the PEP Cost database, version 3.1.5, developed by PEP. However equipment costs are mainly based on venders’ estimates since much very large or special equipment is involved. In the course of developing our design, we had discussions with individuals at several contractors and equipment vendors whom we cordially thank for their advice, information and assistance. Foster Wheeler of Canada, St Katherine, Ontario, provided technical data and cost information related to the steam cycle. Chart Industries in LaCross, Wisconsin and their agent, SME Associates, LLC in Houston, Texas provided technical information and cost data for the “cold box” cryogenic section and heat rejection system. Since turbine and compressor efficiencies are critical to the conceptual design, the compression machinery sizing, performances and pricing were provided verbally by General Electric and their joint venture Novo Pignone of Italy. The Elliott Company confirmed the performance and provided additional data and the pricing information. Capital Cost Table 13 summarizes the capital investment for the plant. Since the plant is designed in modules of 300 million scf/d, cost exponents are not applicable. Table 14 itemizes the capital cost by section. The estimates are in mid-2002 U.S. dollars (PEP Cost Index of 620) and are based on construction on the U.S. Gulf Coast. The base case battery limits investment estimate totals $542 million. With a 15% contingency, the total fixed capital investment (TFC) for the plant 35 PEP REVIEW 2003-15 is about $912 million including off-site utilities and storage. (With a 25% contingency factor, the TFC is $992 million.) The total capital investment of $912 million in LNG production is measurably lower than the investments reported by others, which range from $205/mt to $380/mt of LNG [9]. The basis of these literature values is not reported (whether ships are included in the highest values for instance). However we believe our estimate, $181 per ton LNG based on US Gulf Coast labor cost and productivity, that was corroborated by several sources of expertise represents a realistic scenario. After adding 15% contingency the capital investment is $209 per ton excluding the cost of land, owner’s cost (royalty fees), or any unusual soil conditions. As discussed in the sections above, the process differences in our plant from the conventional processes can account for at least a portion of the savings. The Liquefaction section contains the largest and most expensive individual pieces of equipment, costing $353 million; compression and refrigeration account for $261 million of this. Total offsites cost $370 million. Storage of $143 million and marine system costs of $142 million are the largest costs. The $32 million allotment for General Service Facilities assumes a stand alone grassroots unit. The other category of general service items includes a fire station and equipment, cafeteria, fences and all other support facilities. At an existing plant site most of these services would already be available at a modest incremental cost, if any, and be considerably less than at a totally new location. For cost estimation, the amine unit cost is treated as a packaged unit using a curve type estimate. Nevertheless, for high CO2 content (say over 4% as opposed to 0.2-1.2 vol % in the given design basis and more so for significant sulfur content, which is not the case here), the cost of the gas treating could reach a significant proportion and factor equipment estimate item by item would be appropriate for achieving a credible cost estimate. Further, the feed gas is assumed to enter to ISBL at 45 bar-g. This is not necessarily the case in all situations and expensive pre-compression could be required depending on location and depletion level of the gas reservoir. The gas inlet system may include slug catcher equipment that we consider to be an upstream unit within the gas production facility. We chose sea water cooling over air cooling for our process design. The capital investment associated with sea water circulation for two trains is about $40 MM. About $27 MM could be attributed to two refrigeration trains rejecting 1,000 MM Btu/hr and the balance for steam turbines condensers rejecting 500 MM Btu/H. The investment associated with refrigeration cycle heat rejection is an additional $18 MM a total $45 in heat rejection associated with refrigeration. The appropriate investment in air cooling rejecting 1,000 MM Btu/hr at a temperature difference of 12°C (22°F) is estimated to be $34 MM. On this basis, the potential additional 10% extra LNG production capacity by far out weighs the reduction of $11 MM in capital investment. Given the same situation for variable speed gas turbines such as frame 5D this issue of air cooling versus sea water cooling could turn more towards a break even situation. Regarding heat rejection from the steam/power cycle, about 450-500 MM Btu/hr, the estimated cost of steam condensers is relatively smaller than propylene condensers because of a higher heat transfer coefficient. Once sea water cooling is established for the refrigeration cycle, the incremental cost of sea water circulation for the steam cycle is relatively small. On this basis, total sea water cooling system is used. Because sea water cooling is a high maintenance service, two spare exchangers are added to the operating 24 propylene condensing exchangers, thus allowing scale removal while operating at maximum summer sea water temperatures. As to the steam condensers of the methane refrigeration compressors, one common spare is added to the two existing condensers. 36 PEP REVIEW 2003-15 The same is the case with the power generation condensers where the common spare also serves as a condenser to the startup turbines. The cost is based on demineralizing water instead of desalination of water. For LNG storage, we assume the double containment tanks with outer shell of concrete could be 25-30% more expensive than single containment tanks. However this reduces plot area and increases safety. The basis of LNG storage capacity is nominal 8 days flexible capacity. Two 50% power generators are chosen. It is recognized that a single unit would result in lower investment, and indeed if power back up from a local grid exists this could be a viable approach. However, at this point the facility is designed to be fully self sustained and no single equipment failure will cause a total shut down. Making the gas treating, methane refrigeration and power generation units into single train units is estimated to reduce the capital cost by $22-25 million or about 2.5%. Our assessment is this cost reduction does not justify the potential reduction in the plant’s on stream factor. 37 PEP REVIEW 2003-15 Table 13 LNG BY CONVENTIONAL CASCADE REFRIGERATION TOTAL CAPITAL INVESTMENT CAPACITY: 9,646 MILLION LB/YR (4,380,000 T/YR) LNG AT 0.95 STREAM FACTOR PEP COST INDEX: 620 COST ($1,000) ------------ PACKAGE UNITS: AMINE UNIT (SECTION 100) DRYING/MERCURY REMOVAL (SECTION 200) LIQUEFACTION (SECTION 300) LPG FRACTIONATION (SECTION 400) HEAT RECOVERY/STEAM GENERATION (SECTION 500) BATTERY LIMITS, INSTALLED CONTINGENCY, 15% CAPACITY EXPONENT -------------------------UP DOWN ---------- ---------- 22,000 15,000 354.16 15,000 65,000 --------471,160 70,670 --------541,830 BATTERY LIMITS INVESTMENT OFF-SITES, INSTALLED STORAGE (SECTION 600) MARINE SYSTEM (SECTION 700) 143,000 142,140 --------- UTILITIES & STORAGE WASTE TREATMENT (SECTION 800) 285,140 5,000 GENERAL SERVICES FACILITIES (SECTION 900) 32,000 --------322,140 TOTAL CONTINGENCY, 15% OFF-SITES INVESTMENT 48,320 --------370,460 TOTAL FIXED CAPITAL 912,290 38 PEP REVIEW 2003-15 Table 14 LNG BY CONVENTIONAL CASCADE REFRIGERATION CAPITAL INVESTMENT BY SECTION CAPACITY: 9,646 MILLION LB/YR (4,380,000 T/YR) LNG AT 0.95 STREAM FACTOR PEP COST INDEX: 620 COST ($1,000) -----------PACKAGE UNITS: AMINE UNITS (2) (SECTION 100) DRYING/MERCURY REMOVAL UNITS (2) (SECTION 200) LIQUEFACTION SECTION (2) (SECTION 300) PROPYLENE PRE-CHILLING, INCLUDING ETHYLENE CONDENSING PROPYLENE COMPRESSORS (2) INCLUDING GEAR BOXES GAS TURBINES (2) START UP/BOOSTER STEAM TURBINE ETHYLENE COMPRESSORS (2) METHANE COMPRESSORS (2) AND STEAM TURBINES (2) COLD BOXES (2) (1,200,000 LB) INCLUDING EXCHANGERS FUEL GAS COMPRESSOR (1), ELECTRIC MOTOR COLD FUEL GAS BLOWER (1) REFRIGERANT PRESSURE VESSELS (18) TOTAL, LIQUEFACTION SECTION 22,000 15,000 33,030 31,850 115,150 17,150 38,250 53,900 45,920 5,040 3,600 10,000 --------289,010 15,000 LPG FRACTIONATION (SECTION 400) HEAT RECOVERY/STEAM GENERATION (SECTION 500) HEAT RECOVERY/STEAM GENERATORS (HRSG) (2) HOT BY-PASS STACK (1) AUXILIARY BOILER, PACKAGE UNIT (1) WATER TREATING DEAERATORS, STACK, BOILER FEED WATER PUMPS POWER GENERATORS (2), INCLUDING CONDENSORS HEAT REJECTION REFRIGERATION TOTAL, HEAT RECOVERY/STEAM GENERATION SECTION BATTERY LIMITS, INSTALLED CONTINGENCY, 15% 20,000 1.50 5,000 5,500 15,000 18,000 --------65,000 471,160 70,670 --------541,830 BATTERY LIMITS INVESTMENT 39 PEP REVIEW 2003-15 Table 14 (Continued) LNG BY CONVENTIONAL CASCADE REFRIGERATION CAPITAL INVESTMENT BY SECTION CAPACITY: 9,646 MILLION LB/YR (4,380,000 T/YR) LNG AT 0.95 STREAM FACTOR PEP COST INDEX: 620 COST ($1,000) -----------OFF-SITES, INSTALLED STORAGE (SECTION 600) LNG TANKS (2), DOUBLE CONTAINMENT LPG TANK (1) NATURAL GASOLINE TANK (1) ETHYLENE REFRIGERANT TANK (4) 110,000 5,000 3,000 4,000 PROPYLENE REFRIGERANT TANK (6) AMINE TANK (2) WATER STORAGE TANKS (2) LNG PRODUCT PUMPS (8) 6,000 1,000 2,000 12,000 --------143,000 TOTAL, STORAGE MARINE SYSTEM (SECTION 700) JETTY/CAUSEWAY (4,500 FT) SEA WATER INTAKE SYSTEM INCLUDING CHLORINATION (2) CONCRETE PIPES, ONE SUCTION LINE, ONE DISCHARGE LINE (4,500 FT EACH) SEA WATER PUMPS, INSTALLED (10) LNG PIPES, 36 IN. I.D. (2) 4,500 FT EACH VAPOR RETURN LINE, 24 IN. I.D. (1) 4,500 FT POWER CABLES (2) LNG TANKER OFF GAS COMPRESSOR (1) 70,000 9,000 20,000 27,000 6,000 4,000 2,000 4,140 --------142,140 TOTAL, MARINE SYSTEM UTILITIES & STORAGE-- 285,140 WASTE TREATMENT (SECTION 800) COLD FLARE LINE, 24 IN. I.D. (2) WARM FLARE LINE, 36 IN. I.D. (2) FLARE STACKS, 150 FT (2) 2,000 2,000 1,000 --------5,000 TOTAL WASTE TREATMENT GENERAL SERVICES FACILITIES (SECTION 900) BALLAST WATER TANK AND TREATING (1) FIRE FIGHTING SYSTEM (FIRE RINGS, PUMPS AND WATER TANK) SEWAGE & DRAINAGE SECURITY & LIGHTING INSTRUMENT AIR 40 3,000 5,000 2,000 2,000 1,000 PEP REVIEW 2003-15 Table 14 (Concluded) LNG BY CONVENTIONAL CASCADE REFRIGERATION CAPITAL INVESTMENT BY SECTION CAPACITY: 9,646 MILLION LB/YR (4,380,000 T/YR) LNG AT 0.95 STREAM FACTOR PEP COST INDEX: 620 COST ($1,000) ------------ NITROGEN AND LIQUID NITROGEN SYSTEM (1) DIGITAL CONTROL SYSTEM, INCLUDING COMPUTER AND AUXILIARY CONTROL ROOM, BLAST PROOF (1) SUBSTATION (1) GENERAL BUILDINGS, SHOPS, ADMINISTRATION BUILDING, LAB ROADS AND PARKING TELECOMMUNICATIONS GENERAL ALLOWANCE FOR OTHER ITEMS TOTAL GENERAL SERVICES FACILITIES 1,500 1,500 2,000 1,500 3,000 2,000 2,000 5,500 --------32,000 --------322,140 TOTAL OFFSITES 41 PEP REVIEW 2003-15 Production Cost Table 15 shows the estimated production cost of LNG product including feedstock and byproduct prices and utilities. The feedstock and product values and utility costs are based upon PEP Yearbook 2002 prices for the U.S. Gulf Coast. All production costs are expressed as ¢/lb of isooctane product. By-products and utilities generated are shown as credits (negative values). Credit is shown for 13,000 kw of interruptible electricity sold outside the plant and valued at 75% of non-interruptible power value. The value of raw natural gas feedstock is for distressed gas where the price is set by negotiation. We used a value of $0.75/MM Btu HHV or 1.735 ¢/lb. The gross raw material cost 1.94 ¢/lb of LNG product. Of the gross raw material cost, 0.27 ¢/lb is recovered as by-product credits for LPG and natural gasoline. A utilities credit for electricity exported of –0.03 ¢/lb of LNG brings the net variable cost to 1.64 ¢/lb. Labor costs are based upon 9 operators per shift (two marine operators and 7 plant operators). Total U.S. operating labor compensation, including benefits, is $37.27/hr each. In likely locations for a LNG plant, the prevailing cost of labor is considerably lower. Maintenance labor is estimated as 2.5%/yr of the battery limits investment. Since online control instrumentation is assumed, control laboratory labor is estimated as 20% of the direct operating labor cost. Total labor cost is estimated to be 0.28 ¢/lb. In the U.S., the staff is estimated to be 92 employees (Table 16). The combined cycle mode as suggested may have increased the staffing by about 20-25% over the common practice when using exclusively gas turbines. 42 PEP REVIEW 2003-15 Table 15 LNG BY CASCADE REFRIGERATION PRODUCTION COSTS PEP COST INDEX: 620 VARIABLE COSTS UNIT COST ------------------------- RAW MATERIALS RAW NATURAL GAS CONSUMPTION PER LB -------------------------- ¢/LB ---------- 1.735 ¢/LB 1.11684 LB 1.94 --------1.94 9.62 ¢/LB 10.8 ¢/LB -0.014014 LB -0.013149 LB -0.13 -0.14 ---------0.27 GROSS RAW MATERIALS BY-PRODUCTS LPG NATURAL GASOLINE TOTAL BY-PRODUCTS UNIT COST ------------------------- CONSUMPTION CONSUMPTION PER LB PER KG -------------------------- -------------------------- UTILITIES ELECTRICITY -0.03 ---------0.03 TOTAL UTILITIES 43 PEP REVIEW 2003-15 Table 15 (Concluded) LNG BY CONVENTIONAL CASCADE REFRIGERATION PRODUCTION COSTS PEP COST INDEX: 620 RAW GAS COST ($/MM BTU HHV) CAPACITY (MILLION LB/YR)* INVESTMENT ($ MILLIONS) BATTERY LIMITS (BLI) OFFSITES TOTAL FIXED CAPITAL (TFC) 0.50 0.75# 1.00 9,646 ------------ 9,646 ------------ 9,646 ------------ 912.3 NEGL --------912.3 912.3 NEGL --------912.3 912.3 NEGL --------912.3 1.29 -0.27 -0.03 --------0.99 1.94 -0.27 -0.03 --------1.64 2.58 -0.27 -0.03 --------2.28 0.03 0.24 0.01 --------0.28 0.03 0.24 0.01 --------0.28 0.03 0.24 0.01 --------0.28 0.28 NEGL --------1.55 0.28 NEGL --------2.20 0.28 NEGL --------2.84 0.22 0.19 --------1.96 0.22 0.19 --------2.61 0.22 0.19 --------3.25 0.95 --------2.91 0.95 --------3.56 0.95 --------4.20 0.06 --------2.97 0.06 --------3.62 0.06 --------4.26 3.15 --------6.12 2.50 --------6.12 1.86 --------6.12 PRODUCTION COSTS (¢/LB) RAW MATERIALS BY-PRODUCTS UTILITIES VARIABLE COSTS OPERATING LABOR, 9/SHIFT, $37.27/HR MAINTENANCE LABOR, 2.5%/YR OF BLI CONTROL LAB LABOR, 20% OF OPER LABOR LABOR COSTS MAINTENANCE MATERIALS, 3%/YR OF BLI OPERATING SUPPLIES, 10% OF OPER LABOR TOTAL DIRECT COSTS PLANT OVERHEAD, 80% OF LABOR COSTS TAXES AND INSURANCE, 2%/YR OF TFC PLANT CASH COSTS DEPRECIATION, 10%/YR OF TFC PLANT GATE COSTS G&A, SALES, RESEARCH NET PRODUCTION COST ROI BEFORE TAXES, 33.5, 26.6, or 19.8^%/YR OF TFC PRODUCT VALUE ----------------------------------* OF LNG # BASE CASE ^ RESPECTIVELY 44 PEP REVIEW 2003-15 Table 16 U.S. STAFFING ESTIMATE Operations 28, 2 per shift Maintenance 24, 16 day time plus 2 on shift Engineering 8, 4 day time plus 1 on shift Marine Operators 8, 2 per shift Administrative 6, 2 day time plus 1 on shift Purchasing 2, day time Laboratory 4, 1 per shift Security 8, 2 per shift Site Manager, Head of Operations, Head of Engineering, Head of Administration 4 Total 92 Maintenance materials are estimated at 3%/yr of the battery limits investment; operating supplies at 10% of operating labor costs. Adding maintenance materials and supplies to the variable materials and labor costs produces a total direct operating cost of 2.20 ¢/lb of LNG product. Our production cost estimate includes charges for plant overhead (80% of labor costs), property taxes and insurance (2%/yr of total fixed cost) and depreciation (10%/yr, straight line). Adding the overhead and taxes and insurance costs to the total direct operating cost gives a plant cash cost of 2.61 ¢/lb. Depreciation further adds 0.95 ¢/lb to bring the plant gate cost to 3.56 ¢/lb. General and administrative expenses (G&A), sales, and research and development (R&D) expenses for this process are assumed to be 1% of the battery limits plus off-site investment costs. LNG or natural gas is a mature commodity sold through well established networks in competitive markets. With G&S, sales and R&D expenses, the net production cost becomes 3.62 ¢/lb of LNG product or $1.54/MM Btu HHV. At 25% ROI before taxes, the product value is 5.98 ¢/lb or $ 2.54/MM Btu HHV. This value is lower than the $2.60/MM Btu HHV calculated at $0.75/MM Btu HHV raw gas cost from reported information because we have credit for electricity and our capital investment is lower than other designs [6]. At $0.50/MM Btu HHV as the cost of the raw natural gas fresh feedstock, net production cost drops to 2.97 ¢/lb ($1.26/MM Btu HHV) from 3.62 ¢/lb ($1.54/MM Btu HHV) of the base case at $0.75/MM Btu HHV. Raising the cost to $1.00/MM Btu HHV, causes the net production cost to jump to 4.26 ¢/lb or $1.81/MM Btu HHV. Using a 25% contingency increased the net production cost to 3.79 ¢/lb or $1.69/MM Btu HHV. 45 PEP REVIEW 2003-15 Profitability As mentioned in the Product Cost section above, the net production cost of the LNG in the U.S. is estimated to be 3.62 ¢/lb or $1.54/MM Btu HHV. To determine a value at the production plant, transportation and the cost of re-gasification are subtracted from the $3.50/MM Btu HHV U.S. value of natural gas. An allowance for about 2,000 miles of transportation with large tankers is assumed at $0.55/MM Btu HHV. A re-gasification cost of $0.35/MM Btu HHV is assumed. The price of LNG at the plant then is $2.60/MM Btu HHV or 6.12 ¢/lb of LNG product. With these assumptions, the before tax return on investment (ROI) is 26.4% for the base capacity plant, just greater than the 25% ROI value frequently used to screen potential projects in the petroleum or chemicals industries. However, the LNG business has some characteristics of a utility, for instance, long term sales contracts and a dedicated supply of raw gas. Utility returns on investment are lower since these market risks are deemed to be lower. A lower ROI may thus be acceptable. A lower return may happen due to shipping longer distances or higher regasification costs than assumed. At $0.50/MM Btu HHV as the cost of the raw natural gas fresh feedstock, ROI jumps to a very attractive 33.3% from 26.6% of the base case at $0.75/MM Btu HHV. Raising the cost to $1.00/MM Btu HHV, causes the ROI to decline to a marginally acceptable 19.7%. Using a 25% contingency decreased the ROI to 22.7% from 26.4% with 15% contingency. 46 PEP REVIEW 2003-15 REFERENCES Literature 1. ConocoPhillips, “Kenai Liquefied Natural Gas Operation,” sales brochure 2. Linde Science and Technology (Jan. 2003) 3. Zeus Development LNG report (Sept. 2003) 4. Houser, C. G., et al., “Phillips Optimized Cascade Process,” GASTECH 96, Vienna, Austria. (December 1996) 5. Herandez, Rick, “ConocoPhillips – Bechtel Global LNG Collaboration,” (ca. 2003) 6. Kotzot, H. J. “LNG Plant Size versus LNG Transportation Distance,” 2001 AICHE Spring National Meeting, paper 54e (Feb. 2001) 7. Cambridge Energy Research Associates, Inc., “CERA’s LNG Quarterly Review, Between the Reality and the Hype,” Special Report®, (c2003) 8. Mak, J., et al. “LNG Flexibility,” Hydrocarbon Engineering, 8, 10 (Oct. 2003), 26-31 9. Yost, C., et al. “Benchmarking study compares LNG plant costs,” Oil Gas J., 101, 15 (Apr. 14, 2003) 56-59 10. Sen, C. T., “LNG poised to consolidate its place in global gas trade,” Oil Gas J., 101, 24 (June 23, 2003) 72-74, 76-81 11. Sen, C. T., “New supply projects to push LNG into major markets,” Oil Gas J., 101, 25 (June 30, 2003) 64-68, 71 12. Tullo, A. H. “Catalyzing GTL,” C&E News 81, 29 (July 21, 2003) 18-19 13. Avidan, A., et al. “Study evaluates design considerations of larger, more efficient liquefaction plants,” Oil Gas J., 101, 32 (Aug. 18, 2003) 50-54 Patents US 4680041 DeLong, B. W., (to Phillips Petroleum Company), “Method for cooling normally gaseous material,” US Patent 4,680,041 (Jul. 14, 1987) US 5611216 Low, W. R., (not assigned), “Method of load distribution in a cascaded refrigeration process,” US Patent 5,611,216 (Mar. 18, 1997) US 5669234 Houser, C. G., et al., (to Phillips Petroleum Company), “Efficiency improvement of open-cycle cascaded refrigeration process,” US Patent 5,669,234 (Sep. 23, 1997) US 6016665 Cole, E. T., et al., (to Exxon Production Research Company), “Cascade refrigeration process for liquefaction of natural gas,” US Patent 6,016,665 (Jan. 25, 2000) US 6253574 Stockmann, R., et al., (to Linde Aktiengesellschaft), “Method for liquefying a stream rich in hydrocarbons,” US Patent 6,253,574 (Jul. 3, 2001) 47 PEP REVIEW 2003-15 PEP Publications PEP Report 29G Nielsen, Richard. “Ethylene Plant Enhancement,” PEP Report 29G, SRI Consulting, Menlo Park, CA (April 2001) PEP Review 91-1-4 Ma, James J. L. “Removal of Mercury from Ethylene Plant Feedstock and Cracked Gas Streams,” PEP Review 91-1-4, SRI Consulting, Menlo Park, CA (July 1992) PEP Review 2002-7 Cesar, Marcos A. “Liquefied Natural Gas by the Mixed Fluid Cascade Process, PEP Review 2002-7, SRI Consulting, Menlo Park, CA (November 2003) PEP Yearbook Wang, Shao-Hwa (Sean), ed. “PEP Yearbook International 2002”, Vol. 1E, SRI Consulting, Menlo Park, CA (2002) 48 PEP REVIEW 2003-15 Figure 1 (Sheet 1 of 5) LNG BY CASCADE REFRIGERATION PROCESS TWO TRAINS (One Shown) SECTION 200: DRYERS & MERCURY REMOVAL SECTION 100: AMINE UNIT F-201 2 C-202 A,B C-201 A,B,C Natural Gas to E-304 3 23OC V-201 V-102 Natural Gas E-201 17OC 650 psig Mole Sieve Drying E-101 1 Condensate to Amine Unit 50OC V-101 CO2 (g) To Vent 5 54OC 46OC Water C-101 60OC C-102 E-108 T-101 E-102 Water 36OC 4 To Fuel Gas Steam Steam 38OC 100 psia E-106 V-103 122OC E-107 From Amine Sump E-103 T-101 Amine Surge Drum PEP Report 2003-15 V-101 Water Knock Out Drum C-101 CO2 Absorber V-102 CO2 Absorber Overhead Drum V-103 V-201 Fuel Gas Condensate Separator Drum E-104 E-105 F-201 Dryer Regeneration Furnace C-102 CO2 Stripper C-201 A,B,C Mole Sieve Dryer C-202 A,B Mercury Adsorber 2003 49 Figure 1 (Sheet 2 of 5) LNG BY CASCADE REFRIGERATION PROCESS TWO TRAINS (One Shown) SECTION 300: LIQUEFACTION K-302 Fuel Gas 322 psia Exhaust Gas to Heat Recovery System, Sh. 5 M-302 4 in. Water-g Air 2,155,000 lb/H 21OC Combustor O Steam, 915 psia, 382 C G-301 K-303 1482OC K-301 Speed Reducer To E-327, Sh. 3 3 2 1 2 3 35OC 60OC 137 psia 20 220 psia Hot Air Compressor Expander From E-327 K-304 Speed Reducer 1 6OC 72 psia E-301 -32OC 26 psia 22 Condensate to V-501, Sh. 5 E-302 A-L M-301 V-301 17OC 137 psia O 35 C To Condensate/Steam Drum V-501, Sh. 5 21 E-303 25 V-302 -4OC 74 psia K- 305 V-303 23 -32OC 28 psia 24 Sea Steam 915 psig, 482OC Uncontrolled Extraction Steam to Amine & LPG Units Fuel Gas from Cold Box, Sh. 3 E-324 Sh. 3 6 E-323 Sh. 3 V-304 E-306 -32OC 594 psia E-326 Sh. 3 E-325 Sh. 3 7 E-304 Natural Gas to Cold Box, Sh. 3 E-305 Raw LPG to LPG Unit, Sh. 4 Fuel Gas to K-309, Sh. 3 O Treated Dry Natural Gas M-301 Screen PEP Report 2003-15 G-301 Chlorination Unit M-302 Air Filter K-301 Start-up/ Peaking Turbine K-302 Gas Turbine 3 23 C 610 psia K-303 K-304 Ethylene Propylene Compressor Compressor V-301 High Pressure Propylene Flash Drum -1OC K-305 Electricity Generator V-302 Mid Pressure Propylene Flash Drum -31OC V-303 Low Pressure Propylene Flash Drum V-304 Raw LPG Separator 2003 50 Figure 1 (Sheet 3 of 5) LNG BY CASCADE REFRIGERATION PROCESS TWO TRAINS (One Shown) SECTION 300: (Concluded) 24OC -41OC 117 psia 300 psia 30 K-303, Sh.2 C3 =Refrigerant 26 psia -43OC 58 psia -37OC 61 psia 34 E-324 C3 =Refrigerant -4OC 24OC 127 psia -3OC 31 E-325 482OC, Steam 900 psia K-107 -92OC 24 psia E-323 O -3 C Stage 3 C3 =Refrigerant -4OC C3 =Refrigerant -32OC E-326 Stage 2 O -21 C 540 psia -57OC 120 psia V-305 Stage 1 44 -23OC 245 psia 40 37 -3OC 105 psia -81OC -75OC E-327 47 -28OC 295 psia Sea Water To V-501, Sh. 5 41 -101OC 24 psia 32 33 35 -90OC V-106 -74OC 64 psia V-308 530 psia V-309 -129OC 113 psia O -109 C 273 psia 42 43 36 Cold Box 45 V-307 -92OC 27 psia V-310 46 -153OC 28 psia E-318 38 E-321 O 11 25 O -73 C -134OC 28 psia 16 psia -51 C K-308 O E-319 O -55 C -72 C E-320 -128OC -90OC -72OC E-308 From V-304 Sh. 2 To E-306 Sh. 2 -32OC 594 psia E-307 E-311 E-309 E-310 -33OC E-315 E-313 E-312 -108 C -76OC -93OC -157OC 19 psia E-316 -109 C O -51OC 8 9 E-314 -113OC LNG to Loading T-601 18 E-317 38OC Fuel Gas 12 From E-306 Sh. 2 From Tankers O -91OC 6 NNF 10 V-311 -152OC 299 psia O -34 C 19 M K-309 K-303 Ethylene Compressor (See Sh. 2) PEP Report 2003-15 V-305 HighPressure Ethylene Flash Drum V-306 Mid Pressure Ethylene Flash Drum V-307 Low Pressure Ethylene Flash Drum K-306 Methane Compressor Steam Turbine K-307 Methane Compressor V-308 High Pressure Methane Flash Drum V-309 Mid Pressure Methane Flash Drum V-310 K-308 Low Pressure Fuel Gas Methane Flash Cold Blower Drum K-309 Fuel Gas Compressor V-311 T-601 LNG Flash LNG Storage Drum Tank (Offsite) 2003 51 Figure 1 (Sheet 4 of 5) LNG BY CASCADE REFRIGERATION PROCESS ONE TRAIN SECTION 400: LPG FRACTIONATION -19OC 440 psia Raw LPG from V-304 Sh. 2 -32OC 544 psia -32OC Ref. C3 To Vapor Recovery, NNF 154 psia -30OC 435 psia E-401 V-401 V-403 V-402 7 16 E-405 C2 Rich Distillate to Fuel Gas, NNF 15 E-406 C-401 Fuel Gas 49OC C3C4 LPG 35OC C-402 13 133OC 450 psia 50 psig 50 psig Steam 149OC O 149 C E-402 Steam E-403 14 E-404 V-401 Raw LPG Flash Drum PEP Report 2003-15 C-401 Deethanizer V-402 Deethanizer Reflux Drum C-402 Debutanizer Natural Gasoline 49OC V-403 Debutanizer Reflux Drum 2003 52 Figure 1 (Sheet 5 of 5) LNG BY CASCADE REFRIGERATION PROCESS TWO TRAINS (One Shown) SECTION 500: HEAT RECOVERY SYSTEM V-501 Steam Condensate Steam 900 psig, 482OC 250,000 lb/H O 40 C V-502 M-501 G-501 498OC 313OC 182OC Flue Gas O Exhaust Gas from Gas Turbine K-302, Sh. 2 549 C 12 in Water-g E-501 E-502 E-503 E-504 Vent 1115 psia G-502 149OC 100 psig Make up Water 49,726 lb/H Steam V-503 V-504 Boiler Feed Water 282OC Flue Gas Steam 900 psig, 482OC 250,000 lb/H., Max. Fuel Gas F-501 Air K-501 V-501 Condensate Drum G-501 Heat Recovery Steam Generator K-501 Air Blower PEP Report 2003-15 G-502 Demineralizer or Desaltation Unit V-504 Auxiliary Boiler Steam Drum V-502 HRSG Steam Drum V-503 Deaerator M-501 Stack F-501 Auxiliary Boiler 2003 53