Post on 24-Feb-2020
CNG CNG –– Present Status and Present Status and Future ChallengesFuture ChallengesMichael Nikolaou
Michael J. Economides
Xiuli Wang
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
2
Natural Gas TransportationNatural Gas Transportation
• Current– 70% via pipeline
– 30% as LNG
• Economics
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
3
Globalization of Gas TradeGlobalization of Gas Trade
Source: International Energy Agency
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
4
Potential CNG MarketsPotential CNG Markets
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
5
CNG vs. LNG Marine TransportCNG vs. LNG Marine Transport
CNG
LNG
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Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
6
Loading and Offloading Terminals Loading and Offloading Terminals for LNG and CNG for LNG and CNG
At Source
At Destination
Source: http://www.xgas.us
LNG CNG
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Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
7
CNG vs. LNGCNG vs. LNGCNG LNG
Processing Compressed gas <1:300
(Possibly chilled)
gas → liquid → gas
(1:600)
Loading Dehydrate, compress Treat, liquefy, store
Terminals Jetty or buoy Jetty or regas offshore
Ships Simple – like bulk‐carrier
Sophisticated, efficient
Receiving Decompress (& heat) –utilize energy released
Store, regasify
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Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
8
Marine CNG HistoryMarine CNG History
Source: companies’ web sites
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
9
ABS, DNV ApprovalABS, DNV Approval
• EnerSea (steel, vertical pipes, 130 bar, ‐29°C)
• SeaNG (Coselle 275 bar)
• Knutsen (steel, vertical pipes, 250 bar)
• CETech: (steel, horizontal pipes, 200‐250 bar)
• TransCanada (wrapped steel liner)
• Trans Ocean Gas (composite)
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
10
CNG Vessels TriviaCNG Vessels TriviaArticulated Tug
BargeShip
Volume 0.7-2 MMcm(25-75 MMscf)
8-29 MMcm(300-1000 MMscf)
Loading unloading rates
0.3-2 MMcm/day (10-75 MMscf/day)
2-14 MMcm/day (75-500 MMscf/day)
Distance 100-1000 km (50-500 nautical
miles)
250-5000 km (135-2700 nautical
miles)Speed <25 km/hr
(<14 knots)<33 km/hr (<18 knots)
Estimated cost $15-35 million $150-350 million
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
11
CNG Technologies: CNG Technologies: CosellesCoselles (Compression only)(Compression only)
Source: SeaNG
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
12
CNG Technologies: Compression and ChillingCNG Technologies: Compression and Chilling
Source: EnerSea
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
13
Why Compression and Chilling?Why Compression and Chilling?
z~ zTV
P
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
14
Loading and OffloadingLoading and Offloading
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
15
Natural Gas Transport: Fixed CostNatural Gas Transport: Fixed Cost
CAPEX Distribution
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CNG LNG Pipeline
Permanent Assets Flexible Assets
CAPEX Distribution
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CNG LNG Pipeline
Permanent Assets Flexible Assets
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
16
CNG Distribution Patterns: Logistics Matter!CNG Distribution Patterns: Logistics Matter!
• Hub‐and‐Spoke • Milk‐Run
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
17
CNG DistributionCNG Distribution
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
18
CNG Fleet Size BoundsCNG Fleet Size Bounds
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
19
CNG Distribution in the CaribbeanCNG Distribution in the Caribbean
0 2 4 6 8 10 12
MontserratTurks and Caicos Islands
British Virgin IslandsAnguilla
DominicaAntigua and Barbuda
Saint V incent and the GrenadinesSaint Kitts and Nevis
GrenadaSaint Lucia
Cayman IslandsHaiti
BermudaAruba
MartiniqueBarbados
United States Virgin IslandsNetherlands Antilles
GuadeloupeBahamas
Trinidad and TobagoJamaica
Dominican RepublicPuerto Rico
Individual �bars�and cumulative �dots�CNG requirement �Bcm�year�
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
20
CNG Distribution in the Caribbean: The Big 4CNG Distribution in the Caribbean: The Big 4
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
21
CNG to the Big 4: Fleet CapacityCNG to the Big 4: Fleet Capacity
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
22
CNG to the Big 4: Travel TimeCNG to the Big 4: Travel Time
3 4 5 6 7 8 9 10 11 12 13�of ships, n
2
4
6
8
Time�days� Puerto Rico
Of f loading time
Travel and loading time
3 4 5 6 7 8 9 10 11 12 13�of ships, n
2
4
6
8
Time�days� Puerto Rico
Of f loading time
Travel and loading time
2 3 4 5 6 7 8 9 10 11 12�of ships, n0
5
10
15
Time�days� Dominican Republic
Of f loading time
Travel and loading time
2 3 4 5 6 7 8 9 10 11 12�of ships, n0
5
10
15
Time�days� Dominican Republic
Of f loading time
Travel and loading time
2 3 4 5 6 7 8 9 10 11 12�of ships, n0
2
4
6
8
Time�days� Jamaica
Of f loading time
Travel and loading time
2 3 4 5 6 7 8 9 10 11 12�of ships, n0
2
4
6
8
Time�days� Jamaica
Of f loading time
Travel and loading time
2 3 4 5 6 7 8 9 10 11 12�of ships, n0
2
4
6
8
Time�days� Bahamas
Of f loading time
Travel and loading time
2 3 4 5 6 7 8 9 10 11 12�of ships, n0
2
4
6
8
Time�days� Bahamas
Of f loading time
Travel and loading time
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
23
CNG Distribution in the Caribbean: CNG Distribution in the Caribbean: The Small OnesThe Small Ones
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
24
CNG to the Small Ones: Itinerary CNG to the Small Ones: Itinerary
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
25
CNG to the Small Ones: Fleet CapacityCNG to the Small Ones: Fleet Capacity
4 6 8 10 12 14
100
120
140
160
180
qload �MMcm�day�
Gto
tal
�MMcm� n �4
n �5
n �6
n �7n �8n �9
n �10
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
26
CNG to the Small Ones: Reduced ItineraryCNG to the Small Ones: Reduced Itinerary
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
27
CNG to the Small Ones: CNG to the Small Ones: Fleet Capacity for Reduced ItineraryFleet Capacity for Reduced Itinerary
4 6 8 10 12
50
60
70
80
qload �MMcm�day�
Gto
tal�MMcm
� n �4
n �5
n �6
n �7n �8n �9
n �10
Nikolaou
Research Project Openings
CNGCNG
CNG VesselsCNG Vessels
CNG Transport:CNG Transport:CAPEX CAPEX
optimizationoptimization
Case StudiesCase Studies
ConclusionsConclusions
28
ConclusionsConclusions
• CNG ready for prime time– Room for further improvement
• CNG complements LNG– Several potential markets worldwide
• Logistics and fleet optimization important