LNG is a natural gas (especially methane, CH 4 , with some ethane mixture C 2 H 6 ) that has been converted into a liquid form for the ease and safety of uninterrupted storage or transport. It takes about 1/600 the volume of natural gas in the form of gas (under standard conditions for temperature and pressure). Odorless, colorless, non-toxic and non-corrosive. Hazards include flammability after evaporation into gas, freezing and asphyxia. The liquefaction process involves the removal of certain components, such as dust, acid gases, helium, water, and heavy hydrocarbons, which can cause downstream difficulties. The natural gas is then condensed into a liquid at close atmospheric pressure by cooling it to about -162 ° C (-260 ° F); Maximum transport pressure is set at about 25 kPa (4 psi).
Natural gas is primarily converted into LNG to achieve natural gas transport by sea where the placement of pipelines is technically and economically feasible. LNG achieves a higher volume reduction than compressed natural gas (CNG) so that the LNG (volumetric) energy density is 2.4 times larger than CNG (at 250 bar) or 60 percent of diesel. This makes the cost of LNG efficient in marine transportation over long distances. However, CNG carriers can be used economically to medium distance in marine transportation. Specially designed cryogenic vessels (LNG carriers) or cryogenic road tankers are used for their transport. LNG is principally used to transport natural gas to the market, where it is certified and distributed as a natural gas pipeline. It can be used in natural gas vehicles, although it is more common to design vehicles to use compressed natural gas. The relatively high production costs and the need to store them in expensive cryogenic tanks have hampered extensive commercial use. Despite these shortcomings, on an energy basis, LNG production is expected to reach 10% of global crude oil production by 2020. (see LNG Trading)
Video Liquefied natural gas
Specific energy and energy density
The calorific value depends on the gas source used and the process used to liquefy the gas. The range of calorific values ​​can reach/- 10 to 15 percent. Typical values ​​of higher heating values ​​of LNG are about 50 MJ/kg or 21,500 BTU/lb. Typical values ​​of a lower heating value of LNG are 45 MJ/kg or 19.350 BTU/lb.
For the purpose of different fuel comparisons, the heating value can be expressed in terms of energy per volume known as the energy density expressed in MJ/liter. The LNG density is about 0.41 kg/liter to 0.5 kg/liter, depending on temperature, pressure, and composition, compared with water at 1.0 kg/liter. Using a median value of 0.45 kg/liter, a typical energy density value is 22.5 MJ/liter (based on a higher heating value) or 20.3 MJ/liter (based on a lower calorific value).
LNG energy density (volume-based) is approximately 2.4 times larger than CNG which makes it economical to transport natural gas by ship in the form of LNG. LNG energy density is proportional to propane and ethanol but only 60 percent of diesel and 70 percent gasoline.
Maps Liquefied natural gas
History
Experiments on the properties of gas began in the early seventeenth century. By the mid-seventeenth century, Robert Boyle had gained an inverse relationship between pressure and gas volume. Around the same time, Guillaume Amontons began searching for the effects of temperature on the gas. Various gas experiments continue for the next 200 years. During that time there was an attempt to liquefy the gas. Many new facts about the nature of the gas have been found. For example, at the beginning of the 19th century, Cagniard de la Tour showed there was a temperature above which the gas could not be liquefied. There was a huge boost in the mid to late nineteenth century to melt all the gas. A number of scientists including Michael Faraday, James Joule, and William Thomson (Lord Kelvin), conducted experiments in this field. In 1886 Karol Olszewski liquefied methane, a major constituent of natural gas. By 1900 all the gas had been liquefied except for liquefied helium in 1908.
The first large-scale liquefaction of natural gas in the US was in 1918 when the US government liquefied natural gas as a way to extract helium, which is a small component of some natural gas. The helium is intended for use in British wind balloons for World War I. LNG is not stored, but is reunited and immediately inserted into the main gas.
Major patents relating to natural gas liquefaction were in 1915 and the mid-1930s. In 1915, Godfrey Cabot patented a method for storing liquid gas at very low temperatures. It consists of a Thermos type bottle design which includes a cold inside tank in an outer tank; tank separated by insulation. In 1937 Lee Twomey received a patent for the process of liquefying large-scale natural gas. The goal is to store natural gas as a liquid so it can be used to shave the peak energy load during a cold snap. Because of the large volume it is not practical to store natural gas, such as gas, near atmospheric pressure. However, if it can be liquefy it can be stored in a volume of 600 times smaller. This is a practical way to store it but the gas should be stored at -260 Â ° F (-162 Â ° C).
There are two processes for liquefying natural gas in large quantities. The first is a cascade process, in which natural gas is cooled by another gas which in turn has been cooled by another gas, hence the so-called "cascade" process. There are usually two cascade cycles before the liquefied natural gas cycle. Another method is the Linde process, with a variation of the Linde process, called the Claude process, which is sometimes used. In this process, the gas is regeneratively cooled by passing through the hole until it is cooled at a melting temperature. The gas cooling by developing it through orifices was developed by James Joule and William Thomson and is known as the Joule-Thomson effect. Lee Twomey uses the cascade process for his patent.
Commercial operations in the United States
The East Ohio Gas Company built a full-scale commercial liquefied natural gas (LNG) plant in Cleveland, Ohio, in 1940 only after a successful pilot plant built by its twin company, Hope Natural Gas Company of West Virginia. This is the first factory in the world. It originally had three balls, approximately 63 meters in diameter containing LNG at -260 Â ° F. Each ball holds the equivalent of about 50 million cubic feet of natural gas. The fourth tank, cylinder, was added in 1942. It has an equivalent capacity of 100 million cubic feet of gas. The plant operates successfully for three years. The gas stored is regasified and fed into electricity when a cold blow hits and extra capacity is required. This prevents gas rejection to some customers during a cold snap.
The Cleveland plant failed on October 20, 1944 when a cylindrical tank burst spilled thousands of gallons of LNG above the plant and neighborhood nearby. The gas evaporated and burned, causing 130 casualties. Fire delayed further application of LNG facilities for several years. However, over the next 15 years new research on low temperature alloys, and better insulation materials, set the stage for industrial revival. It resumed in 1959 when the US World War II vessel Methane Pioneer, which was converted to carry LNG, shipped LNG from the US Gulf Coast to England with energy shortages. In June 1964, the world's first built aircraft carrier, "Princess Metana" began operating. Soon after, a large natural gas field was discovered in Algeria. International trade in LNG was soon followed as LNG was sent to France and England from the fields of Algeria. Another important attribute of LNG has now been exploited. Once the natural gas is melted, it can not only be stored more easily, but it can be transported. Thus, energy can now be delivered by oceans through LNG in the same way as those delivered by oil.
The US LNG industry resumed in 1965 when a series of new plants were built in the US. The building continued into the 1970s. This plant is not only used for peak shaving, as in Cleveland, but also for the base load supply for places that have never had natural gas before this. A number of import facilities were built on the East Coast to anticipate the need to import energy through LNG. However, the recent explosion in US natural gas production (2010-2014), made possible by "fracking" hydraulics, has made many of these import facilities considered export facilities. The first US LNG exports finished in early 2016.
Production
Natural gas inserted into the LNG plant will be treated to remove water, hydrogen sulfide, carbon dioxide and other components that will freeze (eg, benzene) below the low temperatures required for storage or damage to liquefaction facilities. LNG usually contains more than 90 percent methane. It also contains small amounts of ethane, propane, butane, some heavier alkanes, and nitrogen. The purification process can be designed to deliver nearly 100 percent of methane. One risk of LNG is a rapid phase transition explosion (RPT), which occurs when cold LNG comes in contact with water.
The most important infrastructure necessary for LNG production and transport is an LNG plant consisting of one or more LNG train, each of which is an independent unit for liquefaction of gas. The largest LNG carrier operating in Qatar, with a total production capacity of 7.8 million metric tons per year (mmtpa). The facility has recently reached a safety milestone, completing 12 years of operating in offshore facilities without the Lost Time Incident. Operation Qatar took over Train 4 Atlantic LNG in Trinidad and Tobago with a production capacity of 5.2 mmtpa, followed by a SEGAS LNG plant in Egypt with a capacity of 5 mmtpa. In July 2014, Atlantic LNG celebrated its 3000th LNG cargo at its disbursement facility in Trinidad. The Qatargas II plant has a production capacity of 7.8 mmtpa for each of the two trains. LNG sourced from Qatargas II will be supplied to Kuwait, following the signing of an agreement in May 2014 between Qatar Liquefied Gas Company and Kuwait Petroleum Corp. LNG is loaded onto the ship and delivered to the regasification terminal, where LNG is allowed to expand and reconfigure to gas. Regasification terminals are typically connected to storage and pipeline distribution networks to distribute natural gas to local distribution companies (LDCs) or independent power plants (IPPs).
Production of LNG plant
The information for the following table is derived in part from the publication by the U.S. Energy Information Administration. See also List of LNG terminals
Total world production
The LNG industry grew slowly during the second half of the last century as most LNG plants are located in remote areas that are not served by pipelines, and because of the huge cost to process and transport LNG. Establishing LNG plant costs at least $ 1.5 billion per 1 mmtpa of capacity, receiving terminal costs $ 1 billion per 1 bcf/day throughput capacity and LNG vessels costing $ 200 million - $ 300 million.
In early 2000, the price for building an LNG plant, receiving terminals and ships fell when new technology emerged and more players invested in liquefaction and regasification. This tends to make LNG more competitive as a means of energy distribution, but increased material costs and demand for construction contractors have put pressure on prices in recent years. The standard price for a 125,000 cubic meter LNG vessel built in European and Japanese shipyards was once US $ 250 million. When Korean and Chinese shipyards enter the race, increased competition reduces profit margins and increases efficiency - reducing costs by up to 60 percent. Costs in US dollars also declined due to the devaluation of the world's largest shipbuilding currency: the Japanese yen and the Korean won.
Since 2004, the large number of orders has increased the demand for shipyard slots, raising their prices and increasing ship costs. The construction cost per ton of the LNG liquefaction plant fell steadily from the 1970s to the 1990s. Costs are reduced by about 35 percent. However, recently the cost of building liquefaction and regasification terminals doubled due to the rising cost of materials and the shortage of skilled labor, professional engineers, designers, managers and other white-collar professionals.
Due to the problem of natural gas shortages in the northeastern US and surplus natural gas in other countries, many new LNG import and export terminals are being considered in the United States. Concerns about the security of the facility created controversy in some of the areas in which they were proposed. One such location is Long Island Sound between Connecticut and Long Island. Broadwater Energy, the efforts of TransCanada Corp and Shell, wants to build an LNG import terminal in sound on the New York side. Local politicians including the Suffolk County Executive raised questions about the terminal. In 2005, New York Senators Chuck Schumer and Hillary Clinton also announced their opposition to the project. Several proposals of import terminals along the coast of Maine are also filled with high levels of resistance and inquiries. On September 13, 2013, the US Department of Energy approved the application of Dominion Cove Point to export up to 770 million cubic feet per day of LNG to countries that do not have free trade agreements with the US. In May 2014, FERC ended its environment. assessment of the Cove Point LNG project, which found that the proposed natural gas export project can be constructed and operated safely. Another LNG terminal currently proposed for Elba Island, Plan Ga for three LNG export terminals in the US Gulf Coast region has also received conditional Federal approval. In Canada, the LNG export terminal is under construction near Guysborough, Nova Scotia.
Commercial aspects
Global Trade
In the commercial development of the LNG value chain, the first LNG supplier confirms sales to downstream buyers and then signs long-term (usually 20-25 years) contracts under strict conditions and structuring for gas pricing. Only when customers are confirmed and greenfield development projects are considered economically viable, can LNG project sponsors invest in their development and operations. Thus, the LNG liquidation business has been limited to players with strong financial and political resources. Major international oil companies (IOC) such as ExxonMobil, Royal Dutch Shell, BP, BG Group, Chevron, and national oil companies (NOCs) such as Pertamina and Petronas are active players.
LNG is shipped worldwide in specially constructed ships. LNG trading is completed by signing a SPA (sale and purchase agreement) between the supplier and the receiving terminal, and by signing the GSA (gas sales agreement) between the receiving terminal and the end user. Most of the terms of the contract used to be a DES or ex ship, holding the seller responsible for the transport of gas. With low shipbuilding costs, and buyers prefer to ensure a reliable and stable supply, but contracts with FOB requirements are increasing. Under such conditions buyers, who often own vessels or sign long-term charter agreements with independent carriers, are responsible for transportation.
LNG purchase agreements used to be long term with little flexibility in both price and volume. If the quantity of an annual contract is confirmed, the buyer is obligated to take and pay for the product, or to pay for it even if not taken, in what is called a take-or-pay contract obligation (TOP).
In the mid-1990s, LNG was a buyer's market. At buyer's request, SPA begins to adopt some flexibility on volume and price. Buyers have more upward and downward flexibility in TOP, and short-term SPAs less than 16 years into effect. At the same time, alternative destinations for cargo and arbitration are also permitted. At the turn of the 21st century, the market again supports sellers. However, sellers are becoming more sophisticated and now propose sharing arbitrage opportunities and move away from S-curve pricing. There has been much discussion about the creation of "OGEC" as the OPEC natural gas equivalent. Russia and Qatar, the countries with the largest and third largest natural gas reserves in the world, eventually supported the move.
Until 2003, LNG prices have followed the price of oil. Since then, LNG prices in Europe and Japan are lower than oil prices, although the relationship between LNG and oil is still strong. In contrast, prices in the US and the UK have recently skyrocketed, then fell as a result of changes in supply and storage. In the late 1990s and early 2000s, the market shifted to buyers, but since 2003 and 2004, this market has become a strong seller market, with net-back as the best estimate for prices.
Research from QNB Group in 2014 shows that strong global demand is likely to keep LNG prices high for at least the next few years.
The current surge in non-conventional oil and gas in the US has resulted in lower gas prices in the US. This has led to a discussion in the oil-related gas market in Asia to import gas based on the Henry Hub index. The recent summit in Vancouver, Pacific Energy Summit 2013 Pacific Energy Summit 2013 invites policy makers and experts from Asia and the US to discuss LNG trade relations between these areas.
The receiving terminals are in about 18 countries, including India, Japan, Korea, Taiwan, China, Greece, Belgium, Spain, Italy, France, England, USA, Chile, and Dominican Republic, among others. There are plans for Argentina, Brazil, Uruguay, Canada, Ukraine and others to also build new receiving terminals (gasification).
LNG Project Screening
Basic Load (Large Scale, & gt; 1 MTPA) The LNG project requires natural gas reserves, buyers and financing. Using proven technology and proven contractors is very important for investors and buyers. Gas reserves required: 1 tcf of gas needed per mpa LNG for 20 years.
LNG is the most cost efficient manufactured in a relatively large facility due to economies of scale, on sites with sea access enabling massive bulk shipments directly to the market. This requires a safe supply of gas of sufficient capacity. Ideally, the facility is located close to a gas source, to minimize the cost of medium transport infrastructure and gas depreciation (loss of fuel in transport). The high cost of building a large LNG facility makes progressive gas resource development to maximize the utilization of critical facilities, and the extension of the life of LNG facilities that have been financially, cost-effectively depreciate. Particularly when combined with lower selling prices due to large installed capacity and increased construction costs, this makes economic screening/justification for developing new facilities, and especially greenfield, LNG challenging, even if it can be more eco-friendly than existing facilities with all stakeholders concerns are satisfied. Due to high financial risk, usually contracts of gas supply and gas concession contractually for a long period of time before proceeding to investment decision.
Usage
The main use of LNG is to simplify the transport of natural gas from source to destination. On a large scale, this is done when the source and destination are across the ocean to each other. This can also be used when adequate pipeline capacity is not available. For large-scale transportation use, LNG is usually calibrated at the receiving end and driven to local natural gas pipeline infrastructure.
- LNG can also be used to meet peak demand when normal pipeline infrastructure can meet most demand requirements, but not peak demand needs. These factories are usually called LNG Peak Shaving Plants because the goal is to shave some of the peak demand from what is needed from the supply pipeline.
- LNG can be used for internal combustion engine fuel. LNG in the early stages becomes the main fuel for transportation needs. These are being evaluated and tested for applications on trucks, off-road, marine, and rail. There are known issues with fuel tanks and gas deliveries to the engine, but although these concerns move to LNG as transportation fuel has begun. LNG competes directly with compressed natural gas as fuel for natural gas vehicles because the engines are identical. There may be applications where trucks, buses, trains and LNG boats can be cost effective in order to regularly distribute LNG energy along with public transport and/or passengers to smaller and isolated communities without local gas sources or access to pipelines.
Use of LNG to drive large over-the-road trucks
China has been a leader in the use of LNG vehicles with more than 100,000 LNG-powered vehicles on the road in September 2014.
In the United States the beginning of the capabilities of the public Fueling LNG is being enforced. An alternative fueling tracking tracking site shows 84 truck fuel LNG centers by December 2016. It is possible for large trucks to travel across the country such as Los Angeles to Boston and refuel at public fuel stations every 500 miles. The National Motor Directory of 2013 lists about 7,000 trucks, so about 1% of US trucks have LNG.
As of December 2014, LNG and NGV fuel have not been picked up very quickly in Europe and it is questionable whether LNG will be the preferred fuel among fleet operators. During 2015, the Netherlands introduced LNG-powered trucks in the transport sector. The Australian Government plans to develop an LNG toll road to utilize locally produced LNG and replace imported diesel fuel used by interstate carrier vehicles.
In 2015, India also made a small start by transporting LNG by an LNG-powered ground tanker in the state of Kerala. In 2017, Petronet LNG prepared 20 LNG stations on the highway along the west coast of India connecting Delhi with Thiruvananthapuram covering a total distance of 4,500 km through Mumbai and Bengaluru. Japan, the world's largest LNG importer, will use LNG as a road transport fuel.
Use of LNG for high-horsepower/high-torque engine fuels
In an internal combustion engine, the cylinder volume is a common measure of engine power. So the 2000cc engine will usually be stronger than the 1800cc engine, but that assumes the same air-fuel mixture is used. Also If, through a turbocharger for example, the 1800cc engine uses a fuel-air mixture that is significantly more solid energy, then it may be able to generate more power than a 2000cc engine that burns less solid-fuel air mixture energy. Unfortunately turbochargers are very complex and expensive. Thus it becomes clear for high/high torque engines, the fuel that is inherently usable to create a solid fuel mixture of more energy is preferred because smaller and simpler machines can be used to produce the same power.
With traditional gasoline and diesel engines, the fuel-air mixed energy density is limited because liquid fuel does not mix well inside the cylinder. Furthermore, gasoline and diesel are automatically ignited at temperatures and pressures relevant to the engine design. An important part of traditional engine design is designing cylinders, compression ratios, and fuel injectors so pre-ignition is avoided, but at the same time as much fuel can be injected, mix well, and still have time to complete. burning process during power stroke.
Natural gas does not ignite automatically at pressures and temperatures relevant to traditional gasoline and diesel engine designs, thus providing more flexibility in the design of natural gas engines. Methane, a major component of natural gas, has an autosuisi temperature of 580 ° C (1,076 ° F), while gasoline and diesel autoignite are about 250 ° C (482 ° F) and 210 ° C (410 ° C). Ã, Â ° F) respectively.
With compressed natural gas engines (CNG), fuel and air mixing are more effective because the gas usually mixes well in a short time, but at typical CNG compression pressure, the fuel itself is less dense than gasoline or diesel. so the end result is a mixture of lower energy solid fuel. So for the same cylinder displacement engine, a non-turbocharged CNG-powered engine is usually less powerful than a gas or diesel engine of the same size. For that reason turbochargers are very popular in European CNG cars. Despite these limitations, the 12-liter Cummins Westport ISX12G engine is an example of a CNG-capable engine designed to pull a tractor/trailer load of up to 80,000 pounds indicating CNG can be used in most if not all on-road truck applications. The original ISX G engine combines turbochargers to increase air fuel energy density.
LNG offers a unique advantage over CNG for applications that require higher horsepower by eliminating the need for a turbocharger. Since LNG boils at about -160 ° C (-256 ° F), using a simple heat exchanger, a small amount of LNG can be converted into its gas form at very high pressures with little or no mechanical energy use. Well-designed horsepower engines can utilize this ultra-high solid gas energy source to create fuel-air mixtures with a higher energy density than can be efficiently made with CNG-powered engines. The final result when compared to CNG engines is higher overall efficiency in high horsepower engine applications when high pressure direct injection technology is used. The Westport HDMI2 fuel system is an example of a high-pressure direct injection technology that does not require a turbocharger when working with an appropriate LNG heat exchanger technology. The Volvo Trucks 13-liter LNG engine is another example of an LNG engine that utilizes advanced high-pressure technology.
Westport recommends CNG for 7 liters or smaller engines and LNG with direct injection for engines between 20 and 150 liters. For engines between 7 and 20 liters, the option is well recommended. See slide 13 from there NGV Bruxelles - Presentation Session of Industrial Innovation
High horsepower engines in oil drilling, mining, locomotives, and marine fields have been or are being developed. Paul Blomerous has written a paper that concluded as much as 40 million tonnes per year of LNG (about 26.1 billion gallons/year or 71 million gallons/day) can be needed only to meet the global needs of high-powered engines in 2025 to 2030.
Until the end of the first quarter of 2015, Prometheus Energy Group Inc. claims to have sent more than 100 million gallons of LNG in the previous four years to industrial markets, and continues to add new customers.
Use of LNG in maritime app
Bunkering LNG has been established in several ports through trucks to deliver fuel. This type of LNG fueling is very easy to establish the assumption that an LNG supply is available.
Feeders and shipping companies Shortsea Unifeeder has operated the world's first LNG-powered container ship, Wes Amelie, since late 2017 transit between Rotterdam and Baltic ports with weekly schedules. Container shipping company Maersk Group has decided to introduce LNG-fueled container ships. DEME Group has contracted WÃÆ'¤rtsilÃÆ'¤ to propel a new 'Antigoon' dredger with a dual fuel engine (DF).
In 2014, Shell orders a special LNG bunker ship. It is planned to enter service in Rotterdam in the summer of 2017
The International Convention for the Prevention of Pollution from Ships (MARPOL), adopted by IMO, has mandated that ships should not consume fuel (bunker fuel, diesel, etc.) with sulfur content greater than 0.1% from 2020. High sulfur bunker fuel reimbursement with sulfur-free LNG is required on a large scale in the marine transportation sector because low-sulfur liquid fuels are more expensive than LNG.
Trading
LNG global trade is growing rapidly from being negligible in 1970 to what is expected to be a significant number globally by 2020. For reference, global production of crude oil of 2014 is 92 million barrels per day or 186.4 quadr/year (quadrillion BTU/yr).
In 1970, the global LNG trade was 3 billion cubic meters (bcm) (0.11 thigh). In 2011, it was 331 bcm (11.92 thighs). The US began exporting LNG in February 2016. The Black & amp; Veatch October 2014 estimates that by 2020, the US alone will export between 10 Bcf/d (3.75 quads/yr) and 14 Bcf/d (5.25 rank/year). E & amp; Y projected global LNG demand could reach 400 mtpa (19.7 quads) by 2020. If that happens, the LNG market will be about 10% the size of the global crude market, and that does not count the bulk of natural gas. which is sent through a pipe directly from the well to the consumer.
In 2004, LNG accounted for 7 percent of the world's natural gas demand. Global trade in LNG, which has risen at a rate of 7.4 percent annually over the decade from 1995 to 2005, is expected to continue to grow substantially. LNG trading is expected to increase by 6.7 percent annually from 2005 to 2020.
Until the mid-1990s, LNG demand was heavily concentrated in Northeast Asia: Japan, South Korea, and Taiwan. At the same time, the Pacific Valley inventory dominates world LNG trading. The world's interest in using natural gas-combined recycling generating units for power generation, coupled with the inability of North America's and North Sea's natural gas supply to meet rising demand, substantially expands the regional market for LNG. It also brings new Atlantic Basins and Middle Eastern suppliers into the trade.
By the end of 2011, there are 18 LNG exporting countries and 25 LNG importing countries. The three largest LNG exporters in 2011 were Qatar (75.5 MT), Malaysia (25 MT) and Indonesia (21.4 MT). The three largest LNG importers in 2011 were Japan (78.8 MT), South Korea (35 MT) and UK (18.6 MT). The volume of LNG trading increased from 140 MT in 2005 to 158 MT in 2006, 165 MT in 2007, 172 MT in 2008. Global LNG production is 246 MT in 2014, mostly used in inter-country trade. Over the next few years there will be a significant increase in the volume of LNG Trading. For example, about 59 MTPA new LNG supplies from six new factories came to market only in 2009, including:
- Northwest Shelf Train 5: 4.4 MTPA
- Sakhalin II: 9.6 MTPA
- Yemen LNG: 6.7 MTPA
- Resilient: 7.6 MTPA
- Qatargas: 15.6 MTPA
- Rasgas Qatar: 15.6 MTPA
In 2006, Qatar became the world's largest LNG exporter. In 2012, Qatar is the source of 25 percent of the world's LNG exports.
Investments in US export facilities increased in 2013, driven by increased shale gas production in the United States and large price differences between natural gas prices in the US and in Europe and Asia. Cheniere Energy became the first company in the United States to receive licenses and export LNG by 2016.
Import
In 1964, Britain and France undertook the first LNG trade, buying gas from Algeria, witnessing a new energy era.
Currently, only 19 countries are exporting LNG.
Compared to the crude oil market, by 2013 the natural gas market accounts for 72 percent of the crude oil market (measured on a heat equivalent basis), where LNG forms a small but rapidly growing section. Much of this growth is driven by the need for clean fuel and some substitution effects due to high oil prices (especially in the heating and power generation sectors).
Japan, South Korea, Spain, France, Italy and Taiwan import large volumes of LNG due to their energy shortages. In 2005, Japan imported 58.6 million tons of LNG, representing about 30 percent of the LNG trade worldwide that year. Also in 2005, South Korea imported 22.1 million tons, and in 2004 Taiwan imported 6.8 million tons. These three large buyers buy about two-thirds of the world's LNG demand. In addition, Spain imported about 8.2 mmtpa in 2006, making it the third largest importer. France also imports the same amount as Spain. Following the Fukushima Daiichi nuclear disaster in March 2011 Japan became the main importer who controls one-third of the total. European LNG imports are down 30 percent by 2012, and are expected to fall even further by 24 percent in 2013, as South American and Asian importers pay more.
Cargo transfers
Under the LNG SPA, LNG is destined for pre-approved purposes, and such LNG redirects are not permitted. However, if Seller and Buyer make a collective agreement, then cargo transfers are allowed - depending on the additional benefit sharing made by the switch. In the EU and some other jurisdictions, it is not permitted to apply profit-sharing clauses in the LNG SPAs.
Cost for LNG plant
For a long period of time, design improvements at liquefaction plants and tankers have the effect of reducing costs.
In the 1980s, the cost of building an LNG liquefaction plant costs $ 350 per tpa (ton per year). In 2000, it was $ 200/tpa. In 2012, the cost could reach $ 1,000/tpa, in part because of rising steel prices.
As recently as 2003, it is common to assume that this is a "learning curve" effect and will continue into the future. But the persistent perceptions of the cost of decline for LNG have been dashed in recent years.
The cost of construction of the LNG greenfield project has skyrocketed from 2004 thereafter and has increased from about $ 400 per ton per year from capacity to $ 1,000 per ton per year of capacity in 2008.
The main reasons for the surge in costs in the LNG industry can be described as follows:
- Availability of EPC contractors is low as a result of the high level of ongoing oil projects worldwide.
- Raw material prices are high as a result of the surge in demand for raw materials.
- Lack of skilled and experienced workforce in the LNG industry.
- Devaluation of the US dollar.
The 2007-2008 global financial crisis led to a general decline in the prices of raw materials and equipment, which somewhat reduced the cost of constructing an LNG plant. However, in 2012 this is more than offset by increased demand for materials and labor for the LNG market.
Small-scale liquefaction plant
Small-scale liquefaction plants are suitable for peakshaving in natural gas pipelines, transportation fuels, or for the delivery of natural gas to remote areas not connected to pipelines. They usually have a compact size, fed from a natural gas pipeline, and are located close to the location where the LNG will be used. This proximity reduces transportation costs and LNG products for consumers. It also avoids additional greenhouse gas emissions generated during long transport.
Small-scale LNG plants also allow for local peakshaving - balancing natural gas availability during periods of high and low demand. It also allows communities without access to natural gas pipelines to install local distribution systems and provide stored LNGs.
LNG Prices
There are three major pricing systems in the current LNG contract:
- Oil index contracts used primarily in Japan, Korea, Taiwan and China;
- Oil, oil products and other energy operators index contracts used primarily in the European Continent; and
- Market-indexed contracts used in the US and the UK;
The formula for the index price is as follows:
CP = BP? X
- BP: constant value or base price
- ?: gradient
- X: indexation
This formula has been widely used in the Asian LNG SPA, where the base price represents a variety of non-oil factors, but is usually constant determined by negotiations at a level that can prevent LNG prices falling below a certain level. Thus varies regardless of fluctuations in oil prices.
Henry Hub Plus
Some LNG buyers have signed contracts for US-based cargo in the future at Henry Hub's associated price. The price of Cheniere Energy's LNG export contract consists of fixed costs (liquefaction toll charges) plus 115% of Henry Hub per MMBtu LNG. Tolling charges in Cheniere contracts vary: $ 2.25/MMBtu with BG Group signed in 2011; $ 2.49/MMBtu with Spanish GNF signed in 2012; and $ 3.00/MMBtu with South Korea's Kogas and Centrica signed in 2013.
Oil similarity
The similarity of oil is the LNG price that will be the same as the crude oil in the oil equivalent barrel. If the LNG price exceeds the price of crude oil in BOE terms, then the situation is called the damaged oil parity. The coefficient of 0.1724 produces a full oil parity. In many cases, LNG prices are lower than the price of crude oil in BOE terms. In 2009, in some spot cargo transactions particularly in East Asia, the oil parity approached full oil parity or even exceeded the oil parity. In January 2016, the spot price of LNG (5,461 US $/mmbtu) had damaged the oil parity when Brent crude oil prices (<= 32 US $/bbl) had fallen sharply. By the end of June 2016, LNG prices have fallen by almost 50% below their oil parity price, making it more economical than the more polluting diesel/gas in the transport sector.
S-curve
Many formulas include the S-curve, where the price formula differs above and below the price of certain oils, to dampen the impact of high oil prices on buyers, and low oil prices on sellers. Most LNG trades are governed by long-term contracts. When the LNG spot price is cheaper than the long-term oil price index contract, the most profitable LNG end use is for mobile engine power to replace expensive gasoline and diesel fuel consumption.
JCC and ICP
In most East Asian LNG contracts, the price formula is indexed into a crude oil basket imported into Japan called Japanese Crude Cocktail (JCC). In the Indonesian LNG contract, the price formula relates to Indonesia Crude Oil Price (ICP).
Brent and other energy carriers
On the European continent, the price formula index does not follow the same format, and varies from contract to contract. The price of Brent crude oil (B), the price of fuel oil (HFO), the price of fuel oil (LFO), the price of gas oil (GO), the price of coal, the price of electricity and in some cases, element indexing price formula.
Price review
There is usually a clause that allows the party to trigger a price revision or re-opening price in the LNG SPA. In some contracts there are two options to trigger a price revision. regular and special. The usual is the date to be approved and set in the LNG SPA for pricing purposes.
LNG Quality
The quality of LNG is one of the most important issues in the LNG business. Any gas that does not comply with the specifications agreed upon in the sale and purchase agreement is considered an off-spec or off-quality gas or LNG. Quality rules serve three purposes:
- 1 - to ensure that the gas being distributed is not corrosive and non-toxic, below the upper limit for H 2 S, total sulfur, CO 2 and Hg content;
- 2 - to prevent the formation of liquids or hydrates in the tissues, through the maximum dew point of water and hydrocarbons;
- 3 - to allow the exchange of distributed gases, via limits in the range of variations for parameters affecting combustion: inert gas content, calorific value, Wobbe index, Trap Index, Incomplete Burning Factor, Yellow Index Tip, etc.
In the case of off-spec gas or LNG, the buyer may refuse to accept gas or LNG and the seller must pay the liquidated compensation for the off-spec gas volume concerned.
The quality of the gas or LNG is measured at the point of delivery using instruments such as gas chromatography.
The most important gas quality issues involve sulfur and mercury content and caloric value. Due to the sensitivity of liquefaction facilities to sulfur and mercury elements, the gas delivered to the liquefaction process must be accurately refined and tested to ensure the minimum possible concentration of these two elements before entering the liquefaction plant, so there is not much concern about them.
However, the main concern is the calorific value of the gas. Usually the natural gas market can be divided into three markets in terms of heating value:
- Asia (Japan, Korea, Taiwan) where gas is distributed rich, with gross calorific value (GCV) higher than 43 MJ/m 3 (n), which is 1,090 Btu/scf,
- English and US, where gas is distributed lean, with GCV usually lower than 42 MJ/m 3 (n), which is 1,065 Btu/scf,
- Continental Europe, where an acceptable range of GCVs is wide enough: approximately. 39 to 46 MJ/m 3 (n), ie 990 to 1,160 Btu/scf.
There are several methods to change the heating value of LNG produced to the desired level. For the purpose of increasing the heating value, injecting propane and butane is the solution. For the purpose of lowering the calorific value, nitrogen injections and the extraction of butane and propane are proven solutions. Mixing with gas or LNG can be a solution; But all of these solutions can theoretically run expensive and logistically difficult to manage on a large scale. The price of LNG Lean in mmbtu is lower than the rich LNG price.
Lifestyle technology
There are several liquefaction processes available for large weighted LNG plants (in order of prevalence):
- AP-C3MR - designed by Air Products & amp; Chemicals, Inc. (APCI)
- Cascade - designed by ConocoPhillips
- AP-X - designed by Air Products & amp; Chemicals, Inc. (APCI)
- AP-SMR (Single Mixed Refrigerant) - designed by Air Products & amp; Chemicals, Inc. (APCI)
- AP-N (Nitrogen Refrigerant) - designed by Air Products & amp; Chemicals, Inc. (APCI)
- MFC (liquid cascade mixture) - designed by Linde
- PRICO (SMR) - designed by Black & amp; Veatch
- AP-DMR (Dual Mixed Refrigerant) - designed by Air Products & amp; Chemicals, Inc. (APCI)
- Liquefin - designed by Air Liquide
In January 2016, the nominal global LNG liquefaction capacity was 301.5 MTPA (million tonnes per year), and the liquefaction capacity under construction was 142 MTPA.
The majority of these trains use APCI AP-C3MR or Cascade technology for liquefaction processes. Other processes, used in small minorities from several liquefaction plants, include Shell DMR technology (double-mixed refrigerant) and Linde technology.
APCI technology is the most widely used liquefaction process in the LNG plant: of the currently existing 100 lanes or currently under construction, 86 trains with a total capacity of 243 MMTPA have been designed based on the APCI process. The Philips Cascade process is the most widely used, used in 10 trains with a total capacity of 36.16 MMTPA. The Shell DMR process has been used in three trains with a total capacity of 13.9 MMTPA; and, finally, the Linde/Statoil process is used in the single train of Snohvit 4.2 MMTPA.
The floating liquefied natural gas (FLNG) facility hovers over an offshore gas field, and generates, liquefies, stores and transfers LNG (and potentially LPG and condensate) at sea before the operator sends it directly to the market. The first FLNG facility is now under development by Shell, to be completed in about 2017.
Storage
Modern LNG storage tanks are usually the full type of containment, which has prestressed concrete outer walls and an inner tank of high nickel steel, with very efficient insulation between walls. Large tanks are low aspect ratio (height to width) and cylinder in design with steel or domed concrete roof. The storage pressure in this tank is very low, less than 10 kPa (1.45 psig). Sometimes more expensive underground tanks are used for storage. Smaller quantities (say 700 m 3 (190,000 US gallons) and less), can be stored horizontally or vertically, vacuum-jacketed, pressure vessels. These tanks may be at pressure anywhere less than 50 kPa to more than 1,700 kPa (7 psig to 250 psig).
LNG must be kept cool in order to remain liquid, independent of pressure. Despite the efficient isolation, there will inevitably be some heat leakage into the LNG, resulting in a vaporization of LNG. This boiling gas serves to keep the LNG cool. The boil-off gas is usually compressed and exported as natural gas, or it is boosted and returned to storage.
Transportation
LNG is transported in a specially designed double hull vessel that protects the cargo system from damage or leakage. There are several special leak test methods available to test the integrity of the LNG ship membrane load tank.
Tankers cost about US $ 200 million each.
Transportation and supply is an important aspect of the gas business, as natural gas reserves are usually quite far from the consumer market. Natural gas has much more volume than oil to transport, and most of the gas is transported by pipelines. There are natural gas pipelines in the former Soviet Union, Europe and North America. Natural gas is less dense, even at higher pressures. Natural gas will travel much faster than oil through high pressure pipes, but it can deliver only about a fifth of the amount of energy per day due to lower density. Natural gas is usually liquefied to LNG at the end of the pipe, before shipping.
Short LNG pipes for use in moving products from LNG vessels to land storage are available. Longer pipeline, which allows the ship to lower LNG at a greater distance from the port facility is under development. This requires pipeline in pipeline technology because of the requirement to maintain the coldness of LNG.
LNG is transported by truck tanker, rail tanker, and a specially made ship known as an LNG carrier. LNG will sometimes be taken for cryogenic temperatures to increase tanker capacity. The first commercial ship-to-ship transfers (STS) were carried out in February 2007 at the Flotta Facility in Scapa Flow with 132,000 m 3 LNG passed between the Excalibur and Excelsior vessels. Transfers have also been made by Exmar Shipmanagement, owner of a Belgian gas tanker in the Gulf of Mexico, involving the transfer of LNG from a conventional LNG vessel to an LNG regasification vessel (LNGRV). Prior to this commercial practice, LNG had only been moved between ships on several occasions as a necessity after the incident. SIGTTO - International Gas Tankers and Terminal Operators is the body responsible for LNG operators worldwide and seeks to disseminate knowledge about safe LNG transport at sea.
In addition to LNG vessels, LNG is also used in several aircraft.
Terminal
Liquefied natural gas is used to transport natural gas over long distances, often by sea. In many cases, the LNG terminal is a specially created port that is used exclusively for exporting or importing LNG.
Cooling
Isolation, as efficient as that, will not make LNG cool enough by itself. Inevitably, the heat leak will warm and pump LNG vapors. The industrial practice is to store LNG as a cryogenic cryogen. That is, the liquid is stored at its boiling point for the pressure at which it is stored (atmospheric pressure). As the vapor boils, the heat for the phase change cools the remaining fluid. Because insulation is very efficient, it only needs to bring to a stand to maintain the temperature. This phenomenon is also called auto-refrigeration.
Boiling gas from land-based LNG storage tanks is usually compressed and fed to natural gas pipelines. Some LNG operators use boil off gas for fuel.
Environmental issues
Natural gas can be regarded as the most environmentally friendly fossil fuel, since it has the lowest CO 2 emissions per unit of energy and is therefore suitable for use in high efficiency combined cycle power plants. For an equivalent amount of heat, natural gas combustion generates about 30 percent less carbon dioxide than burning petroleum and about 45 percent less than coal combustion. On a per-kilometer bases transported, emissions from LNG are lower than natural gas flowed, which is a particular problem in Europe, where large quantities of gas are channeled several thousand kilometers from Russia. However, emissions from natural gas transported as LNG are higher than locally produced natural gas to the point of combustion because transport-related emissions are lower for the latter.
However, on the West Coast of the United States, where up to three new LNG import terminals are proposed prior to the US boom, environmental groups, such as the Pacific Environment, Ratepayers for Clean Energy Affordable (RACE), and Rising Tide have moved on. to oppose them. They claim that, while natural gas power plants emit about half the carbon dioxide from equivalent coal-fired power plants, the natural gas combustion needed to produce and transport LNG to the plant adds 20 to 40 percent more carbon dioxide than burning natural gas alone. A review reviewed by peers in 2015 evaluates the full end-to-end cycle of LNG produced in the US and consumed in Europe or Asia. It concludes that global CO2 production will decrease due to the reduction of other fossil fuels being burned.
Security and crash
Natural gas is fuel and combustible substances. To ensure safe and reliable operation, special measures are taken in the design, construction and operation of the LNG facility.
In a liquid state, LNG does not explode and can not burn. In order for LNG to burn, first it has to evaporate, then mix with air in appropriate proportions (flammable range is 5 percent to 15 percent), and then turned on. In case of leakage, LNG evaporates quickly, turns into gas (methane plus trace gas), and mixes with air. If this mixture is in a combustible range, there is a risk of ignition that would create a fire hazard and the dangers of thermal radiation.
Ventilation of gas from vehicles powered by LNG may cause flammable hazards if parked indoors for more than a week. In addition, due to low temperatures, refueling of LNG-powered vehicles requires training to avoid the risk of frostbite.
The LNG tanker has sailed over 100 million miles without the death of a ship or even a major accident.
Some accidents in places involving or associated with LNG are listed below:
- 1944, Oct. 20. Ohio Natural Gas Co. suffered an LNG tank failure in Cleveland, Ohio, USA. 128 people were killed in the blast and the fire. The tank does not have an embankment retaining wall, and it was made during World War II, when the metal rationing was very tight. Tank steels are made with very low amounts of nickel, which means the tank is brittle when exposed to cryogenic LNG properties. The tank broke, spilling the LNG into the city's sewer system. LNG evaporates and turns into gas, which explodes and burns.
- 1979, October 6, Lusby, Maryland, USA. The pump seal fails at the Cove Point LNG import facility, releasing natural gas vapor (not LNG), which enters the power lines. A worker turns off the circuit breaker, which ignites gas vapor. The resulting explosion killed one worker, another seriously injured and caused heavy damage to the building. No safety analysis was required at the time, and nothing was done during the design, design or construction of the facility. The national fire code was changed as a result of the accident.
- 2004, January 19, Skikda, Algeria. Explosion at Sonatrach LNG liquefaction facility. 27 dead, 56 injured, three destroyed LNG trains, broken sea docks and 2004 production down 76 percent for the year. The total loss is US $ 900 million. A steam boiler that is part of an LNG liquefaction truck explodes triggering a massive hydrocarbon gas explosion. The explosion occurred where the propane and ethane coolant storage was located. The distribution of unit sites causes a domino effect from the explosion. It remains unclear whether LNG or LNG vapor, or any other hydrocarbon gas that forms part of the liquefaction process starts an explosion. One report, from the US Government Team Inspection of Sonatrach Skikda LNG Plant in Skikda, Algeria, 12-16 March 2004, has stated that it is a hydrocarbon leak from the liquefaction system.
See also
References
External links
- LNG educational videos. How Natural Gas is compressed into Liquefied Natural Gas for transportation (Shell).
- Center For LNG
- LNG news and industry magazines
- The Gasworld website
- New LNG Factory Technology
- What is LNG and how to be a US energy source?
- Liquefied Natural Gas in the US: Federal Energy Regulatory Commission (FERC)
- LNG Security
- Alternative Fuel Vehicle Training from the National Alternative Fuel Training Consortium
- LNG Safety "Risk and Danger of LNG" is a full report prepared by International President CH Ã, IV, Jeff Beale, analyzing the points made in the controversial Anti-LNG video.
- Organization of LNG Terminal Standards Advocating for Government Adoption of LNG Industry Standards
- Prospect of LNG Development in Russia Speech of Konstantin Simonov at LNG 2008. April 23, 2008.
- Terrorist Threat To Liquefied Natural Gas: Fact or Fiction?
- the growing Asian share in the global LNG market through World Review
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- Energy Outlook BP 2035 with access to global historical data download
- Global Liquid Gas Market: Status and Outlook - (Adobe Acrobat Document *.PDF)
- California Energy Commission: Outlook for Global Trade in Liquid Natural Gas Projection by 2020 - (Adobe Acrobat * PDF Document)
- Guidance on Risk Analysis and the Implications of Safety from Large Waterfree Cane Gas (LNG) - (Adobe Acrobat Document *.PDF)
- International Group of Liquid Natural Gas Importers (GIIGNL)
- LNG Industry 2008 - (Adobe Acrobat *.PDF document)
- Gas Tanker Society and International Terminal Operator of World LNG Industry Standard
Source of the article : Wikipedia
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