Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
Comparisons
Closing Thoughts
2
Gas Transportation & Storage:The Alphabet Soup
• Gas to wire (GTW)
• Gas to liquids (GTL)– Chemical reactions– 10 bcf/d ~ 1MMb/d
• Liquefied natural gas (LNG)– Freezing (-162ºC, -260ºF)
• Compressed natural gas (CNG) – Compression (150-250 atm)– Possibly chilling
Nikolaou
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4
Gas to Wire (Electricity)
4
Combined Cycle Gas Turbine(CCGT) Efficiency ~ 60 %
Typical: 1000 MW power plant (CCGT)
Minimum: 450 MW (~13 Bcf/y)
Source: Int’l Gas Union
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5
Gas to Wire (Electricity):Setting the US Clock back to 1992
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6
Jethro Tull and Shale Gas
6 Source: YouTubeSources: http://collectorsfrenzy.com/details/310384181238 , Holditch and Associates
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7
George Mitchell & the Shale Gas Revolution
7
Nikolaou
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8
George Mitchell & the Shale Gas Revolution
– George Mitchell [1917- July 26, 2013], the Texas oilman who pioneered fracking, did as much to change the world as anybody in the [Silicon] Valley.
• The EconomistJuly 20th, 2013
8
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9
US Natural Gas Production 1990-2035
9 Source: U.S. Energy Information Administration. Annual Energy Outlook 2012 Early Release Overview. January 2012
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10
Spreading the Secret…
10
Nikolaou
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11
…Could Change the World
11 Source: McKinsey Global Institute, Game changers: Five opportunities for US growth and renewal, July 2013
Nikolaou
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Overview
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GTL
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12
US Oil Recently:Impact of Shale Oil
12
Nikolaou
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Overview
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GTL
LNG
CNG
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13
A Long Time Coming
Nikolaou
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GTL
LNG
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15
Natural Gas to Chemicals:Needs Energy
15
Nikolaou
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Overview
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GTL
LNG
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16
Gas to Chemicals: Natural Gas-Based vs. Oil-Based Routes
16
NG
NG
NG
NG
Oil
Oil
Oil
Oil
0% 20% 40% 60% 80% 100%
US
Middle East
European Union
Asia
Steam Cracker Feedstock Breakdown
Chemicals
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GTL
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17
GTL
Gas to Liquids (GTL): Gas to Chemicals & Fuels
Natural GasProcessing
Natural Gas
Methane
Ethane,Liquids
Refinery
Crude Oil Naphtha,Gas Oil
Olefins,Aromatics
Benzene,Toluene,Xylenes
Reforming
Syngas (H2 + CO)
Fischer-Tropsch,Upgrading
Naphtha,Diesel,Waxes,
Ammonia
Methanol
Steam, Air
17
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18
Gas to Liquids (GTL): Very-Large or Very-Small Scale
• Pearl integrated gas and GTL (Qatar)– 1600 MMscf/d of gas resulting in:
• 140 kbo/d of gas-to-liquids products (2 trains)• 120 kbo/d of natural gas liquids and ethane
– $19 billion
• Sasol Louisiana
Source: shell.com18
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19
Gas to Liquids (GTL): Mini GTL & Compact GTL
• 2-50 MMscf/d
Source: T. H. Fleisch, Small Scale Gas Monetization via miniGTL Options, GGFR19
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20
Mini GTL: Evolving
Source: T. H. Fleisch, Small Scale Gas Monetization via miniGTL Options, GGFR
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Overview
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GTL
LNG
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22
The LNG Chain
• International trade– 70% Pipeline– 30% Liquefied Natural Gas (LNG)
22
EthanePropan
e…
Dehydrator
Sweetener
Source: www.total.com
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Overview
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23
Liquefaction Module = LNG Train:Size Matters
Sources: Tusiani & Shearer, LNG: A Nontechnical Guide (2007) Shively et al., Understanding Today’s Global LNG Business (2010)
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24
LNG Tanker…
Sources: http://gazprom-sh.nl, www.weaverscove.com
Moss tank
Membrane tank
Moss tank
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…Size Matters
0
50
100
150
200
250
1960
s
1970
s
1980
s
1990
s
2000
s
2010
2011
2012
2013
2014
2015
2016
LNG Carriers Built and Scheduled for Delivery
Small (<100 kcm)
Standard (100 to 200 kcm)
Q-Flex (200 to 250 kcm)
Q-Max (250 to 300 kcm)
Sources: http://shipbuildinghistory.com (updated 2/29/2012); IGU LNG Report 2010
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26
The LNG Chain
EthanePropan
e…
Dehydrator
Sweetener
Source: www.total.com
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27
Floating LNG:Regasification
Source: http://www.worldoil.com/November-2011-Energy-Issues.html
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28
Floating LNG:Liquefaction
Sources: Shell; BBC
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29
Mini LNG:Cost and Energy
• Capacity: 2,000-500,000 tons/y (vs. MTPA)
Source: Kunert and Larsen, Small is Beautiful – Mini LNG
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LNG:Export Potential in North America...
30
Sabine Pass, Louisiana Regasification Terminal
LiquefactionTerminal
Source: Cheniere
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31
…Complementing Global Gas Trade Flows
Source: BP Statistical Review (2011)31
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33
Compressed Natural Gas (CNG)
Sources: Knutsen; SeaNG
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34
CNG:Compressing & Chilling
Nikolaou
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36
LNG or CNG?
• Both– Primary differentiator: Distance– Secondary differentiator:
Scale-up/down differencesC N G M etal LN G
Source: Nikolaou et al., 2013
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37
LNG or CNG?Effects of Scale
• LNG: Scale-up strong– Doubling liquefaction capacity -25%
CAPEX• CNG: Scale-down strong
– Ship capacity increase: Modular
0 2 4 6 8 100
100
200
300
400
500
Distance , L kmiles
Gas
rate
,qBcfy
L ine s of N P VCNG N P VLNG
Source: Nikolaou et al., 2013
Metal Containers
Composite Containers
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LNG or CNG?Effects of Uncertainty
• CNG: No commercial project yet• LNG: Cost variability
Sources: Cheniere; Nikolaou et al., 2013