ECONOMICS

Natural Gas-Fuel For Newer Generation or Not?

Presentation By:-Yogita Bangar12LLB085

CONTENTS

IntroductionUsesDepletionCNGLNGComparisonConclusion

INTRODUCTION

Natural Gas

Composition:-Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, with other hydrocarbons, carbon dioxide, nitrogen and hydrogen sulfide.

Source:-Natural gas is found in deep underground natural rock formations or associated with other hydrocarbon reser-voirs in coal beds and as methane clathrates. Petroleum is also another resource found in proximity to and with natural gas.

USES

Power Generation-Natural gas is a major source of electricity generation through the use of gas turbines and steam turbines

Domestic Use-Natural gas is a powerful domestic cooking and heating fuel.

Transportation-Natural gas in form of CNG is cleaner automobile fuel compared to petrol and diesel and LNG is also emerging as an alternative fuel for automobiles.

Fertilizers-Natural gas is a major feedstock for the production of ammonia, via the Haber process, for use in fertilizer production.

Aviation-Russian aircraft manufacturer Tupolev is currently running a development program to produce LNG- and hydrogen-powered aircraft so it may be fuel for aviation in future.

Hydrogen- Natural gas can be used to produce hydrogen, with one common method being the hydrogen reformer.

Other-Natural gas is also used in the manufacture of fabrics, glass, steel, plastics, paint, and other products.

Natural gas production, extraction and usage across the world:

Map of Natural gas extraction by countries in cubic meters per year

Depletion

According to Energy Information Agency,[the world in 2005 had enough natural gas left for 60 years and this doesn’t include the those natural gas reserve which are yet not founded.

India had 38 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2007.The total gas production in India was about 31,400 mcm in 2002-03 compared with 2,358 mcm in 1980-81. At this production level, India's reserves are likely to last for around 29 years; that is significantly longer than the 19 years estimated for oil reserves.

Country Proven reserves(million cu m)

Production (million cu m)

Consumption (million cu m)

Exports (million cu m)

Imports (million cu m)

U.S.A. 5,977,000Rank: 6

611,000Rank: 1

646,600Rank: 1

23,280Rank: 10

130,300Rank: 1

China 2,265,000Rank: 15

69,270Rank: 10

70,510Rank: 10

5,360Rank: 26

3,871Rank: 34

Russia 44,650,000Rank: 1

588,900Rank: 2

481,000Rank: 2

173,000Rank: 1

68,200Rank: 5

India 1,075,000Rank: 24

31,700Rank: 23

41,700Rank: 18

0 10,000Rank: 21

Iran 26,850,000Rank: 2

111,900Rank: 4

111,800Rank: 3

6,200Rank: 25

6,100Rank: 27

World 175,400,000 3,177,000 3,198,000 929,900 957,600

Natural gas statistics of some major countries:

Natural gas as fuel

Natural gas is used as fuel for automobiles in mainly two forms-

CNG-Compressed Natural Gas LNG-Liquefied Natural Gas

 

CNG

CNG is made by compressing natural gas (which is mainly composed of methane [CH4]), to less than 1% of the volume it occupies at standard atmospheric pressure.

Compressed natural gas (CNG) is a fossil fuel substitute for gasoline (petrol), diesel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to those fuels, and it is much safer than other fuels in the event of a spill (natural gas is lighter than air, and disperses quickly when released). CNG may also be mixed with biogas, produced from landfills or wastewater, which doesn't increase the concentration of carbon in the atmosphere.

USES

Cars-CNG is used as fuel for cars and any existing gasoline vehicle can be converted to a bi-fuel (gasoline/CNG) vehicle. Several manufacturers (Fiat, Opel (General Motors), Peugeot, Volkswagen, Toyota, Honda and others) sell bi-fuel cars.

Worldwide, there were 14.8 million natural gas vehicles by 2011

COUNTRY VEHICLES(Million)

India 1.10

Pakistan 2.85

Iran 2.86

Argentina 2.07

Brazil 1.70

Locomotives-CNG locomotives are operated by several railroads. The Napa Valley Wine Train successfully retrofits a diesel locomotive to run on compressed natural gas before 2002. This converted locomotive was upgraded to utilize a computer controlled fuel injection system in May 2008, and is now the Napa Valley Wine Train's primary locomotive. Ferrocarril Central Andino in Peru has run a CNG Locomotive on a freight line since 2005. CNG locomotives are usually diesel locomotives that have been converted to use compressed natural gas generators instead of diesel generators to generate the electricity that drives the motors of the train. Some CNG locomotives are able to fire their cylinders only when there is a demand for power, which, theoretically, gives them higher fuel efficiency than conventional diesel engines. CNG is also cheaper than petrol or diesel.

Delhi CNG Price = 38.35 Rs/kg Most Recent price change date: Saturday, July 07, 2012 

Delhi CNG Price = 35.45 Rs/Kg Historical CNG price change date: Tuesday, June 05, 2012 

Delhi CNG Price = 37.22 Rs/Kg Historical CNG price change date: Tuesday, May 29, 2012 

Delhi CNG Price = 35.45 Rs/Kg Historical CNG price change date: Monday, March 05, 2012 

Delhi CNG Price = 33.75 Rs/Kg Historical CNG price change date: Saturday, December 31, 2011 

Delhi CNG Price = 32 Rs/Kg Historical CNG price change date: Saturday, October 01, 2011 

PRICE

LNG Liquefied natural gas or LNG is natural gas (predominantly

methane, CH4) that has been converted to liquid form for ease of storage or transport. Liquefied natural gas takes up about 1/600th the volume of natural gas in the gaseous state. It is odorless, colorless, non-toxic and non-corrosive. The liquefaction process involves removal of certain components, such as dust, acid gases, helium, water, and heavy hydrocarbons, which could cause difficulty downstream. The natural gas is then condensed into a liquid at close to atmospheric pressure (maximum transport pressure set at around 25 kPa/3.6 psi) by cooling it to approximately −162 °C (−260 °F).

LNG is principally used for transporting natural gas to markets, where it is regasified and distributed as pipeline natural gas. It can be used in natural gas vehicles, although it is more common to design vehicles to use compressed natural gas. Its relatively high cost of production and the need to store it in expensive cryogenic tanks have hindered widespread commercial use but it can emerge as an alternative fuel for heavy duty vehicles like bus, trucks, ships etc.

ADVANTAGES DISADVANTAGES

More in abundance than any other fossil fuel

Size of storage tanks

30–40% less greenhouse gas emissions Possible weight disadvantage

Less expensive than gasoline Fewer miles on a tank of fuel

Has high heating value of 24,000 Btu per pound.

Limited vehicle availability

Can be safely stored and burned. Less readily available than gasoline and diesel

Comparison between fuels-Petrol, Diesel, Natural gas, LPG and Electricity

FUEL

PETROL DIESEL NATURAL

GAS LPG

ELECTRI-CITY

Chemical Structure

C4 to C12 C8 to C25 CH4 (83‐99%), 2H6 (1‐13%)

C3H8 (majority) and C4H10

H2

Physical State

Liquid Liquid Compressed Gas Pressurized Liquid

Electricity

Reserve Available

40 years 55 years 60 years 30 years Unlimited

Uses All types of vehicles

Heavy duty vehicles

All types of vehicles.

Cars mainly Cars and scooters

Pollution level

Most polluting Cleaner than Petrol

Cleaner than Petrol, Diesel and LPG

Cleaner than Petrol and Diesel

Least polluting

Cost Most expensive Cheaper than Petrol

Comparatively cheapest

Cheaper than Petrol and Diesel

Cheapest

Energy Content

124,340 Btu/gal

137,380 Btu/gal 22453 Btu/lb-CNG84,820 Btu/gal -LNG

91,410 Btu/gal 3,414 Btu/kWh

CONCLUSIONAfter comparing all possible fuels available it can be concluded that Natural gas is fuel for newer generation and is a better alternate to other fuels like petrol, diesel, LPG etc. because of following features of natural gas:- 

Cheaper than petrol, diesel, LPG and better mileage. More in abundance than any other fossil fuel. Natural gas is the lowest carbon fossil fuel. Natural gas emits 22% less carbon

dioxide than oil and 40% less than coal. Can be used in all vehicles from two vehicles to ships Natural gas is transportable. Liquefied Natural Gas (LNG) and long distance

pipelines have transformed global gas markets and increased the breadth and depth of the global gas trade.

Can be safely stored and burned. Has high heating value of 24,000 Btu per pound.