Natural Gas as Feedstock for Natural Gas as Feedstock for Natural Gas as Feedstock for Natural Gas as Feedstock for Town Gas ProductionTown Gas Production

HKIE / IGEM Joint Gas SeminarHKIE / IGEM Joint Gas Seminar

24 April 201324 April 2013Ir. Chris Man

GM Gas Production

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H.K. & China Gas Co. Ltd.

HKCG (Towngas) ProfileHKCG (Towngas) Profile

1862 - Established in England

- 35,000 capital

Core Business ( Hong Kong )- Gas supply & supporting services- > 1.75 million customers, p

- HKs oldest public utilities

1864 - Gas produced at West Point Work

Supply 500 gas lamps in

1.75 million customers- > 3,500 km HP & LP network- listed company, Market Cap ~ HK$200B

Diversified Business ( Hong Kong )l- Supply ~ 500 gas lamps in

Central (today) area

- 24 km low pressure network

- Telecommunication- LPG Filling Station- Landfill Gas etc.

Mainland China Business ( Over 150 JVs )

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Mainland China Business - City Gas- Water Business- New Energy Business

( Over 150 JV s )

Gas Production MilestoneGas Production MilestoneHKCG

foundedFeedstock change to

heavy oilTai Po Gas Plant

commence operationIntroduction of NG

to Tai Po Plant

1862 1864 1967 1973 1999 2006 20071986

C l i

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Commence supplying town gas with coal as

feedstock

Feedstock change to Naphtha

First LFG utilization project in Shuen Wan

NENT SNG Plant

Naphtha Unloadingg

Tai Po Plant

MTK Plant

Aberdeen Gas Holder

4 / 184 / 18

- Twin 34 km

Di 450

- Twin 34 km

Di 450 - Diameter: 450 mm

- Working Pressure: 90 Bar Max

- Diameter: 450 mm

- Working Pressure: 90 Bar Max

5 / 185 / 18

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Tai Po Plant Tai Po Plant Key DatesKey Datesyy

Project Started Commenced Operation

Phase I March 1985 December 1986

Phase II January 1990 December 1992

115% & NG Modifications

March 2003 September 2006Modifications

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Tai Po Plant LayoutTai Po Plant Layout

Phase I

Phase II Naphtha Storage Tanks

Natural Gas Receiving Station

Air Compressors Stationp

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Tai Po Gas Production PlantTai Po Gas Production Planta o Gas oduct o a ta o Gas oduct o a tPlant Capacity Phase I = 4 x 700,000 Sm3/day (NG)

Phase II = 4 x 1,400,000 Sm3/day 4 x 805,000 Sm3/day (Naphtha only)

(NG)y

Feedstock Naphtha (Sulphur

CRG Process CRG Process Town Gas from Naphtha and NGTown Gas from Naphtha and NGTown Gas from Naphtha and NGTown Gas from Naphtha and NG

SDe-

sulphurisation

SteamNG Feed NG Feed

CRG Reactor

Reformer

Naphtha Feed De-

sulphurisation

CO Heat CO

Air Odour

CO Converter

Heat Recovery

CO2Absorber

R l G

Town Gas

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Recycle Gas

Tai Po Gas CharacteristicsTai Po Gas Characteristics

Chemical Composition %Chemical Composition %Carbon Dioxide (CO2) 16.3 - 19.9Carbon Monoxide (CO) 1.0 - 3.1( )Methane (CH4) 28.2 30.7Hydrogen (H2) 46.3 - 51.8

Physical Properties

Nitrogen & Oxygen (N2 & O2) 0 - 3.3

y p

Calorific Value (MJ/m3) 17.27

Specific Gravity 0.52p y

Wobbe Index 24.00

Weaver Flame Speed 35.00

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p

Natural Gas as Feedstock (I)Natural Gas as Feedstock (I)Natural Gas as Feedstock (I)Natural Gas as Feedstock (I)

Advantage (1) - More Reliable

Dual feedstock improve supply security

Revert back to 100% naphtha when required Revert back to 100% naphtha when required

Natural Gas currently 55 60% of input

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Natural Gas as Feedstock (II)Natural Gas as Feedstock (II)Natural Gas as Feedstock (II)Natural Gas as Feedstock (II)

Advantage (2) - More Economical

25 year contract cheaper & more stable price than naphtha

Benefits pass back to customers ~ 10% price reduction since Q4 2006~ 10% price reduction since Q4 2006

HK$ 9.5 billion accumulated saving to gcustomers up to Dec 2012

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Natural Gas as Feedstock (III)Natural Gas as Feedstock (III)Natural Gas as Feedstock (III)Natural Gas as Feedstock (III)

Advantage (3) - More Environmental

Natural Gas is cleaner# CO2 : ~ 21% reduction NOx : ~ 50% reduction SOx : ~ 30% reduction

Accumulated CO2 reduced up to Dec 2012 ~ 533 000 MT ~ 23 million Trees ~ 533,000 MT ~ 23 million Trees.

13 / 18# 2012 Data

Why not Direct NG Supply ?Why not Direct NG Supply ?Why not Direct NG Supply ?Why not Direct NG Supply ?

S i Security Single Source of NG from Dapeng LNG Terminal

CostHuge investment involved for converting 1 7 Huge investment involved for converting 1.7 million+ customers, HK$ Billions

I i Inconvenience Need to open up large portion of existing

d d i li k f i i underground pipeline network for sectorization over a 10 years period

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Further NG UtilisationFurther NG UtilisationFurther NG UtilisationFurther NG UtilisationHKCG founded

Feedstock change to heavy oil

Tai Po Gas Plant commence operation

Introduction of NG to Tai Po Plant

MTK NG Conversionfounded heavy oil commence operation to Tai Po Plant Conversion

1862 1864 1967 1973 1999 2006 20071986 2013

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Commence supplying town gas with coal as

feedstock

Feedstock change to Naphtha

First LFG utilization project in Shuen Wan

NENT SNG Plant

MTK NG ConversionMTK NG ConversionExisting pipeline

Tai Po Plant to Shatin(make use one of the existing 750mm dia. submarine pipeline)

New U/G pipeline to be constructed Shatin Section ~ 6.7 km Kowloon Section ~ 5 8 km Kowloon Section ~ 5.8 km

New pipeline to be constructed in Tunnel Beacon Hill Tunnel Section ~ 2.2 km

Commence modification at 2009 Target commissioning at 2013

Legend

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LegendU/G PipelineTunnel Section

Greener Energy TargetedGreener Energy TargetedGreener Energy TargetedGreener Energy TargetedHKCG

foundedFeedstock change to

heavy oilTai Po Gas Plant

commence operationIntroduction of NG

to Tai Po PlantMTK NG

Conversionfounded heavy oil commence operation to Tai Po Plant Conversion

1862 1864 1967 1973 1999 2006 20071986 2013 SENT WENTOWTF>65% NG

65% NG

Thank You

Question are welcome

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Naphtha Vapouriser

Convert S to H2S H2S Absorbers

2 R-S + 3 H2 2 H2S + 2 R-H19 / 18

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2 R S + 3 H2 2 H2S + 2 R H

CRG Reactors

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Naphtha + Steam CH4 + H2 + CO

Tubular Tubular Reformer

21 / 18CH4 + H2O 3 H2 + CO

CO Converter

CO + H O CO + H22 / 18

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CO + H2O CO2 + H2

H2O + K2CO3+ CO2 2 KHCO3

CO2 Carbonate CO2Absorber Regenerator

23 / 1823 / 18

Drying Drying System

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Od t THTOdorant THT

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Phase IPhase I

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Phase IIPhase II

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Naphtha Storage TankNaphtha Storage TankssNaphtha Storage TankNaphtha Storage Tankss

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Natural Gas Receiving StationNatural Gas Receiving Station

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Air Compressors StationAir Compressors Station

30 / 1830 / 18