CNG – Present Status Future Challenges · CNG CNG Vessels CNG UTransport: CAPEX optimization Case...

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

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Natural Gas TransportationNatural Gas Transportation

• Current– 70% via pipeline

– 30% as LNG

• Economics

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Globalization of Gas TradeGlobalization of Gas Trade

Source: International Energy Agency

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Potential CNG MarketsPotential CNG Markets

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CNG vs. LNG Marine TransportCNG vs. LNG Marine Transport

CNG

LNG

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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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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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Marine CNG HistoryMarine CNG History

Source: companies’ web sites

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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)

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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

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CNG Technologies: CNG Technologies: CosellesCoselles (Compression only)(Compression only)

Source: SeaNG

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CNG Technologies: Compression and ChillingCNG Technologies: Compression and Chilling

Source: EnerSea

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Why Compression and Chilling?Why Compression and Chilling?

z~ zTV

P

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Loading and OffloadingLoading and Offloading

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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

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CNG Distribution Patterns: Logistics Matter!CNG Distribution Patterns: Logistics Matter!

• Hub‐and‐Spoke • Milk‐Run

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CNG DistributionCNG Distribution

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CNG Fleet Size BoundsCNG Fleet Size Bounds

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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�

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CNG Distribution in the Caribbean: The Big 4CNG Distribution in the Caribbean: The Big 4

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CNG to the Big 4: Fleet CapacityCNG to the Big 4: Fleet Capacity

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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


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


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


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


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


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


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


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CNG Distribution in the Caribbean: CNG Distribution in the Caribbean: The Small OnesThe Small Ones

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CNG to the Small Ones: Itinerary CNG to the Small Ones: Itinerary

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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

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CNG to the Small Ones: Reduced ItineraryCNG to the Small Ones: Reduced Itinerary

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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

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• CNG ready for prime time– Room for further improvement

• CNG complements LNG– Several potential markets worldwide

• Logistics and fleet optimization important

CNG – Present Status Future Challenges · CNG CNG Vessels CNG UTransport: CAPEX optimization Case...

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