Mini-to-Medium Scale LNG – A Profitable &
Environmentally
Sustainable Solution for Flared or Stranded Gas
Matt BARCLAY
Director, Energy Resources Group
Presentation overview
The Agenda
• Introduction to Prometheus Energy
• Small-Scale LNG Production from Flare Gas or
Non-Conventional Sources
• Applicable Purification & Liquefaction Requirements
• Why Small-to-Medium Scale Projects Work & What’s Driving
the Market
• Niche LNG Market Opportunities & Future Demand Sources
• Summary & Conclusions
Prometheus Energy Company
Company Background
• Vertically Integrated LNG Production and Supply
Company
– Design, Own, Operate LNG Project Development
Capabilities
– LNG Supply to Vehicle, Industrial and Utility Customers
• Non-Traditional LNG Supply Sources
– Landfills, Coalmines, Associated Gas Wells & Digesters
• Corporate Offices in Seattle & London
– Publicly Listed on London Stock Exchange (PEC.L)
What is small-to-medium scale LNG?
An Overview of the Existing Market
• Numerous Small/Medium Scale LNG plants in
operation around the world
– Plants sized for 2.5-100M scf/d
– Produce between 1/50th and 1/500th the capacity of
global-scale liquefaction facilities
– Niche Market Supply Focus
• Utility Peakshaving
– Over 100 production/storage sites in US
• Other LNG Production Sources
– NRU’s and/or Liquid Helium Plants
– Non-Conventional LNG Plants (Prometheus)
Non-conventional Gas Source Comparision
A Comparision of Component Concentations and Other Properties
Pipeline
Gas
Component
Associated or Digester or
Stranded
Wastewater
Well Gas
Biogas
Landfill
Gas
Methane (CH4), %
Ethane + Propane, %
Water Vapor, %
Carbon Dioxide, %
90-99
1-5
<0.01
0-5
75-99
2-15
1-3
.01-10
50-65
0
1-10
35-50
35-55
0
1-10
25-45
Nitrogen, other inerts, %
0-2
1-40
0-5
0-20
0
1-1000
250-3,001
250-3,000
0
0-15
0
0-300
1-100
100-3000
250-3,000
5-600
950-1,050
760-1150
505-655
350-550
80-1000
50-1200
1-2
1-2
Condensable
hydrocarbons (NMOCs)
ppmv
Chlorine in organic
compounds, micrograms
per liter
Hydrogen sulfide, ppm
Higher heating value,
(btu/ft3)
Gas Source Pressure,
(psig)
Technologies For Gas Purification
A Suite of Technologies Exist for Gas Clean Up
• Trace Contaminants
– Filtration
– Chilling; Phase change
– Absorption
• Water
• Chemical Solutions
• Liquid CO2
– Adsorption
• Activated Carbon/Zeolites
• Batch or Regenerative
– TSA
– PSA
• CO2 Removal
– Water scrubbing
– Chemical Absorption
• Amines of various types
• Cold methanol
– Adsorption (PSA)
– Membrane
– Cryogenic
• Distillation using ethane
• Freezing with sublimation
• Nitrogen Removal
– Phase equilibria
• Batch or dynamic
Distributed Scale LNG Production
A Solution for Otherwise Flared or Stranded Gas
Bowerman Landfill Gas-to-LNG Project
Project Application: A 11M Scf/Day Flaring Reduction Project
Existing LNG Vehicle Markets
The World LNG Vehicle Markets Continue to Grow
Refuse
Mass Transit
Paratransit & Shuttle Vans
Heavy Duty Fleet
Other Niche LNG Market Opportunites
Existing Applications for LNG Utilization
Propane & Heating Oil Displacement
Pipeline Outage
Utility Peak-Load Shaving
Residential supply
Future LNG Demand Prospects
Future Utilization in Heavy Fuel Demand Markets
Source: Tupolev
Comparision Of Alternative Fuel Prices
Economics Ultimately Drive the Market
DOE - Alternative Fuel Price Report, June 2006
$4.00
Price Per Gallon Equivalent
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
46%
19%
47%
59%
41%
Gasoline
CNG
Propane
Ethanol
(E85)
No. 2
Diesel
40%
53%
$0.00
(GGE)
(GGE)
(GGE)
(GGE)
Prometheus Retail LNG with Federal Excise
Tax Included
Other Alternative Fuel Retail Price
(DGE)
Biodiesel Biodiesel
(B99-100)
(B20)
(DGE)
(DGE)
GGE: Gasoline Gallon Equivalent
DGE: Diesel Gallon Equivalent
Air Quality Benefits Of Alternatve Fuel Use
Reductions in Ground Level Ozone
Emissions can be Substantial
Ozone Forming Emission Reduction % by Fuel Type and Pollutant
20%
Biodiesel 20
Biodiesel 100
CNG, LNG
+10%
+2%
0%
-20%
-15%
-20%
NOx
-40%
PM
-47% -48%
-60%
CO
-53%
-80%
-85%
-100%
-89%
Source: 2005 NREL Technical Report 540-36355;
Puget Sound Clean Air Agency Biodiesel Fact Sheet
LNG & Related Green House Gas Reductions
The Use of LNG Can Lead to Lower
Greenhouse Gas Emissions
• While natural gas vehicles do emit minor amounts of methane,
this slight amount of unburned methane is more than offset by
a substantial reduction in carbon dioxide emissions compared to
other fuels
Emissions of CO2 & CO2 Equivalent from Model
Year 2004 Transit Buses
(grams/mile traveled)
3295
3500
3000
2500
2000
When compared to diesel, natural
gas transit buses are shown to
reduce greenhouse gas emissions
by as much as 37%.
2089
1913
1500
1000
500
+
176
=
0
CO2
Emissions
CO2
Equivalent
of Unburned
Methane
Emissions
Net CO2
Equivalent
Emissions
from 2004
Natural Gas
Transit Bus
CO2
Emissions
from 2004
Diesel
Transit Bus
Source: 2005 NREL Technical Report 540-36355
Bowerman LNG Project Emissions Benefits
The Beneficial Use of Flared Gas can have Substantial
Environmental Benefits
• Emission Reductions and Environmental and Energy
Benefits for Frank R. Bowerman Landfill Gas-to-LNG
Project
7,600
standard cubic feet per minute (scfm)
Total Equivalent Emissions Reduced
[Total = Direct + Avoided]
MMTCO2E/yr
million metric tons of carbon
dioxide equivalents per year
0.8995
tons CH4/yr
tons CO2/yr
tons of methane tons of carbon
per year
dioxide per year
42,242
104,461
Equivalent to any one of the following annual benefits
:
Environmental Benefits
173,957
• Removing emissions equivalent to __ vehicles:
247,888
• Planting __ acres of forest:
2,109,687
• Preventing the use of __ barrels of oil:
99,155,286
• Displacing the use of __ gallons of gasoline:
Presentation Conclusion And Key Findings
Where Does the Market Go from Here?
• Continued strong world-wide growth of LNG supply & demand
– Market growth driven by economic & environmental factors
• Growing use of LNG in the transportation fuel market
– New, much larger NGV markets for 400+ HP NG engines
• New global role for LNG produced from stranded or waste gas
– Look for over 100 small/medium LNG projects to develop in next
10 years and for non-traditional sources of supply to play a
significant role