Monetizing Natural Gas Mare Forum 2014 Athens
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Monetizing Natural Gas: GTW, GTL, LNG, and CNG Prof. Michael Nikolaou
description
Quick overview of gas-to-wire (GTW), gas-to-liquids (GTL), liquefied natural gas (LNG), and compressed natural gas (CNG).Emphasis on comparison between LNG and CNG for marine transportation of natural gas.
Transcript of Monetizing Natural Gas Mare Forum 2014 Athens
Monetizing Natural Gas:GTW, GTL, LNG, and CNG
Prof. Michael Nikolaou
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
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
Comparisons
Closing Thoughts
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Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
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Gas to Wire (Electricity)
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Combined Cycle Gas Turbine(CCGT) Efficiency ~ 60 %
Typical: 1000 MW power plant (CCGT)
Minimum: 450 MW (~13 Bcf/y)
Source: Int’l Gas Union
Nikolaou
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Overview
GTW
GTL
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CNG
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Gas to Wire (Electricity):Setting the US Clock back to 1992
Nikolaou
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Jethro Tull and Shale Gas
6 Source: YouTubeSources: http://collectorsfrenzy.com/details/310384181238 , Holditch and Associates
Nikolaou
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George Mitchell & the Shale Gas Revolution
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Nikolaou
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GTL
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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
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Nikolaou
GTW, GTL, LNG, CNG
Overview
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US Natural Gas Production 1990-2035
9 Source: U.S. Energy Information Administration. Annual Energy Outlook 2012 Early Release Overview. January 2012
Nikolaou
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Overview
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Spreading the Secret…
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Nikolaou
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…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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GTW
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US Oil Recently:Impact of Shale Oil
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Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
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LNG
CNG
Comparisons
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A Long Time Coming
Nikolaou
GTW, GTL, LNG, CNG
Overview
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Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
Comparisons
Closing Thoughts
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Natural Gas to Chemicals:Needs Energy
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Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
Comparisons
Closing Thoughts
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Gas to Chemicals: Natural Gas-Based vs. Oil-Based Routes
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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
Nikolaou
GTW, GTL, LNG, CNG
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GTW
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LNG
CNG
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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
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Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
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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
Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
Comparisons
Closing Thoughts
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Gas to Liquids (GTL): Mini GTL & Compact GTL
• 2-50 MMscf/d
Source: T. H. Fleisch, Small Scale Gas Monetization via miniGTL Options, GGFR19
Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
Comparisons
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Mini GTL: Evolving
Source: T. H. Fleisch, Small Scale Gas Monetization via miniGTL Options, GGFR
Nikolaou
GTW, GTL, LNG, CNG
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LNG
CNG
Comparisons
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Nikolaou
GTW, GTL, LNG, CNG
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GTL
LNG
CNG
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The LNG Chain
• International trade– 70% Pipeline– 30% Liquefied Natural Gas (LNG)
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EthanePropan
e…
Dehydrator
Sweetener
Source: www.total.com
Nikolaou
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Liquefaction Module = LNG Train:Size Matters
Sources: Tusiani & Shearer, LNG: A Nontechnical Guide (2007) Shively et al., Understanding Today’s Global LNG Business (2010)
Nikolaou
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LNG Tanker…
Sources: http://gazprom-sh.nl, www.weaverscove.com
Moss tank
Membrane tank
Moss tank
Nikolaou
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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
Nikolaou
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The LNG Chain
EthanePropan
e…
Dehydrator
Sweetener
Source: www.total.com
Nikolaou
GTW, GTL, LNG, CNG
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CNG
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Floating LNG:Regasification
Source: http://www.worldoil.com/November-2011-Energy-Issues.html
Nikolaou
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Floating LNG:Liquefaction
Sources: Shell; BBC
Nikolaou
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Overview
GTW
GTL
LNG
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Mini LNG:Cost and Energy
• Capacity: 2,000-500,000 tons/y (vs. MTPA)
Source: Kunert and Larsen, Small is Beautiful – Mini LNG
Nikolaou
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LNG:Export Potential in North America...
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Sabine Pass, Louisiana Regasification Terminal
LiquefactionTerminal
Source: Cheniere
Nikolaou
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…Complementing Global Gas Trade Flows
Source: BP Statistical Review (2011)31
Nikolaou
GTW, GTL, LNG, CNG
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Nikolaou
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Overview
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Compressed Natural Gas (CNG)
Sources: Knutsen; SeaNG
Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
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LNG
CNG
Comparisons
Closing Thoughts
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CNG:Compressing & Chilling
Nikolaou
GTW, GTL, LNG, CNG
Overview
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GTL
LNG
CNG
Comparisons
Closing Thoughts
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LNG or CNG?
Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
Comparisons
Closing Thoughts
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LNG or CNG?
• Both– Primary differentiator: Distance– Secondary differentiator:
Scale-up/down differencesC N G M etal LN G
Source: Nikolaou et al., 2013
Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
Comparisons
Closing Thoughts
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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
Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
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LNG or CNG?Effects of Uncertainty
• CNG: No commercial project yet• LNG: Cost variability
Sources: Cheniere; Nikolaou et al., 2013
Nikolaou
GTW, GTL, LNG, CNG
Overview
GTW
GTL
LNG
CNG
Comparisons
Closing Thoughts
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Closing Thoughts
• Monetizing natural gas– Room for multiple technologies (pun
intended!)• Exploring new twists on old ideas
– Pioneers vs. creative imitators
