Small LNG: China Experiences Wensheng Lin · 2017-05-18 · Small Scale to large Market Strategies...
Transcript of Small LNG: China Experiences Wensheng Lin · 2017-05-18 · Small Scale to large Market Strategies...
Small Scale to large Market Strategies & Technologies towards the Mediterranean Area
Small LNG: China Experiences
Wensheng Lin Deputy Director, Institute of Refrigeration and Cryogenics, Shanghai Jiao Tong University
Deputy Secretary General, China LNG Association
Content
• 1. Energy background in China
• 2. Large scale LNG in China
• 3. Small scale LNG in China
1. Energy background in China
Energy by 2015
Quota Unit 2010 2015 Annual increase
Primary Energy Production btce 3.12 3.62 3% Coal btce 3.43 3.75 1.8% Oil btce 0.2 0.215 1.1% Natural gas bcm 95.79 134.6 7.0% Non fossil energy btce 0.32 0.52 10.2% Power capacity TW 0. 97 1.53 9.5% Energy consumption btce 3.61 4.3 3.6%
Coal % 69.2 64 〔-5.2〕*
Oil % 17.4 18.1 〔0.7〕 Natural gas % 4 5.9 〔1.9〕 Non fossil energy % 9.4 12 〔2.6〕 *Data in〔〕indicate the accumulated increase in the five years.
12th Five-Year Plan: 2011-2015; 13th Five-Year Plan: 2016-2020
Adopted from the 13th FYP of Energy Development
Energy mix in 2015
Coal29%
Oil33%
Ntural gas24%
Nuclear E4%
Hydraulic E7%
Renewable3%
World energy mix 2015
Coal64%
Oil19%
Natural Gas6%
Nuclear E1%
Hydraulic E8%
Renewable2%
China energy mix 2015
Coal down, NG up
Coal consumption: much more than world average – Decrease in 3 consecutive years since 2014
– Already the peak in 2013? • The proportion will never go back to that in 2013.
• The absolute amount: highly possible in 2013.
Natural gas consumption: much less than world average – Continuous high speed increase
The Paris Agreement
The most important promise China has made during 12th FYP period was in The Paris Agreement
– Carbon emission vs. GDP: 60-65% down in 2030
– Carbon emission peak: in 2030
How to achieve?
– Non fossil energy: 20% in 2030
• Renewable: not economically and/or technically available
• Nuclear: safety and waste disposition
– Natural gas must play an important role
NG production World natural gas production was 3538.6 bcm in 2015, while 138.0 bcm in China
For the 10 years period, the world production increased 27.3%, while 171% in China.
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NG consumption • For the same period, China’s natural gas
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• The shortage of natural gas is also increasing. In 2015, China imported 33.6 bcm natural gas by pipeline, and 26.2 bcm by LNG.
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Production
Consumption
A large LNG importer
• Mainland China began to import LNG in 2006
• It is now the 3rd largest importer in the world
• China’s LNG consumption increased dramatically in 2016, by nearly 35%, to around 27 Mtpa.
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The 13th FYP • According to the 13th FYP of Energy
Development, the natural gas consumption will increase to 10% in 2020, from 5.9% in 2015
• In the same period, coal consumption will decrease to 58% from 64%
The main energy • In the opening speech of G20 Energy Ministerial
Meeting in Beijing in June 2016, Vice Premier Zhang Gaoli pointed out that, natural gas and non-fossil energy may become the main energy in the future world
2. Large scale LNG in China
LNG receiving terminals
• 16 LNG receiving terminals have been built in mainland China
• At least 1 in each coastal province
• More are under construction or planned, including some by private companies
The ENN Zhoushan receiving terminal
• Invested by ENN, China’s largest private gas company
• Located in an island of Zhoushan, Zhejiang Province
• Capacity 3Mt/a for the 1st phase, with 2 LNG tanks of 160k m3, an offloading pier capable for a 266k m3 LNG carrier, a loading pier capable for two 30k m3 LNG carriers, and 2 loading berths for LNG Ro-ro ship
• Completion of main construction of tanks in end of 2016
The ENN Zhoushan receiving terminal
LNG carriers
• Hudong-Zhonghua Shipbuilding (Group) Co. Ltd has built 11 LNG carriers for MOL, China LNG, China Shipping Group andChuo Kaiun
– 1x143k m3, 2x145k m3, 3x147k m3
– 2x169k m3, 1x172k m3 and 2x174k m3
• Orders of LNG carriers for Teekay and China Shipping Group
– 7x174k m3
LNG carriers
LNG plant
• Gas source: CNPC pipeline
• Designed liquefaction capacity: 5x106 Nm3/d, by far the largest one in China
• Process: Cascade
3. Small scale LNG in China
3.1 Liquefaction
• Nearly 200 LNG plants have been built
Liquefaction summary • Small size: capacity usually under 2 million Nm3/d
• Diverse Processes
– Home companies have strong abilities in competition
• State-owned companies such as Huanqiu
• A number of vivid private companies: Chengdu Shenleng,
GreenEnergy, and so on
– International Technology is still welcome: BV, Linde, AP…
• Various feed gases: NG, CBM, SNG, COG, shale…
• Innovations are common in China LNG industry
LNG plants suffers • The small LNG producing companies suffers
painfully from the low oil price
– Fuel customers are reluctant to change from oil; some even change back from LNG to oil
– Competition from cheaper short-term imported LNG
• The overall operating rate was usually 30-40% since 2015
• LNG plants fed with unconventional gas, e.g COG, run well these years
3.2 Small carriers
• Small LNG carriers are important to transport
LNG from large terminals to nearby coastal
terminals, or terminals along large rivers
• For example, the Shanghai Wuhaogou LNG
peak-shaving station, with totally 320k m3 LNG
tanks, is receiving LNG by small carriers from
Shanghai LNG terminal or other large terminals
Small carrier types
• 30k m3
– L=185.2m, B=28.1m, D=18.5m
– 16130DWT, total weight 25400t
– 16.5kn
Small carrier types
• Layout
Small carrier types
• 10k m3
– L=125.1m, B=22.4m, D=8.6m
– DWT5200
– 12.3kn
Small carrier types
• Dual fuel tugboat
• LNG bunkering ship (1000m3)
3.3 Utilizations
• Residential
• Industrial
• Transportation
– 5 millions road NGVs
– Dual fuel LNG ship in rivers; Prospective more
sea ships
• CCHP systems
Pollution: key driver
• Air pollution situation is very severe in China,
especially in the area around Beijing
• Government has issued policies to prohibit
use of coal in some area, and to encourage
the shifts from coal to gas/electricity
• The demand for natural gas, including LNG,
is rising rapidly
Shanghai: 1st ECA in China?
• In June 2015, Shanghai effected a local
regulation to control ship emission to the air
in the Shanghai Port area, the first of such
regulation in China. The regulation
encourage the use of low-sulphur oil and
clean fuel
• The suggestion to established Emission
Control Area (ECA) has been proposed
Price: another driver
• The oil price has been risen considerably
from the lowest point
• More short-term LNG is imported, which is
much cheaper than the long-term LNG
• These has pushed the rapid increase of LNG
utilization
Sales of LNG truck
• The sales of LNG heavy duty trucks increased
257% in January 2017, compared to January
2016
• 4119 LNG heavy duty trucks are sold in
February 2017, more than times of that in
February 2016
• The highest monthly sale was 6582 in
September 2014
Prospects
• China has many experiences in small LNG,
including liquefaction, transmission, storage,
regasification and utilization
• With the important role of natural gas for
pollution control and carbon reduction,
small LNG has a bright future in China
• Open to cooperation all over the world
• The 19th International Conference and
Exhibition on Liquefied Natural Gas (LNG
2019) will be held in Shanghai, China in 1-5
April 2019
• Presented by IGU/GTI/IIR
• Hosted by CLNGA/CGS/CAR/CGA
• Supported by Shanghai Government
• http://www.2019.com
Thank you for your attention!
Contact
• Prof. Dr. Wensheng Lin
• Institute of Refrigeration and Cryogenics,
Shanghai Jiao Tong University
• Tel: +86 21 34206533
• E-mail: [email protected]