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Diversifying Revenue Streams in Natural Gas Processing
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Natural Gas Processing Value Chain
3
Natural Gas Processing
Sulfur
Methane
Methane Pipeline
Pipeline Gas
LNG Liquefaction Pipeline Gas
Ethane
LPG
Natural Gas
GTL
NATURAL GAS PROCESSING
Refined Helium
Liquid Fuels (Diesel, Naphta)
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Helium Industry Value Chain
Extraction Purification
& Liquefaction
Distribution & Transfill
End-User Industries
Gaseous Crude Helium • Bulk Gaseous Helium• Iso-Container Helium• Dewar Helium• Cylinder Helium• Specialty Gases• Services
Liquid Pure Helium • Bulk Gaseous Helium• Dewar Helium• Cylinder Helium
Crude Helium
Industrial Gas Companies
Wholesale
Liquid Pure Helium
Producers
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GLOBAL HELIUM
OVERVIEW
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BRITISH COLUMBIA/ALBERTA, CANADA
RILEY RIDGEWYOMING
SOUTHEASTCOLORADO
FOUR
AREA
HUGOTON/PANHANDLEFIELDS
CORNERS
NORTH SEA
EAST HANOVERFIELDS, FRG
PLANT NEARSALZWEDEL, FRG
ODOLANOW PLANTOSTROW, POLAND
MEREENIE FIELDNORTHERNTERRITORY
WOODADA FIELDWESTERN AUSTRALIA
SAUDI ARABIA
SECHAUN PLANTCHINA
ORENBURGSKIJ, GPZORENBURG, RUSSIA
IRKUTSK AREA,RUSSIA
MOAB, UTAH
NORTH FIELD,QATAR
Natural Gas Fields Containing Helium
ALGERIA
OMANIRAN
Helium Producing
Helium Producing Potential
LIBYA
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Helium Availability Secures Additional Revenues
Long Term EstimatedReserves in Ground
(depends on level of future natural gas extraction)
Future Natural Gas extraction will generate sufficient volumes to satisfy future helium demand at current levels and ~4% CAGR
Future Natural Gas extraction will generate sufficient volumes to satisfy future helium demand at current levels and ~4% CAGR
Near TermHelium Contained in Natural Gas Production
(Projected 2015 demand 9 BCF)
Maximizing helium recovery from quantified natural gas vent streams would be sufficient to meet demand for the next 10 years and generate additional revenues for LNG processing plants
Maximizing helium recovery from quantified natural gas vent streams would be sufficient to meet demand for the next 10 years and generate additional revenues for LNG processing plants
BCF/year
SourceRecovered Vented
U.S. 3.0 Negligible
Algeria 1.7 2.5+
Qatar 1.4 Negligible
Russia 0.6 Unknown
Canada 0 0.5
Poland 0.05 Unknown
Australia 0.15 Unknown
R.O.W 0.02 Unknown
1Cliffside Stored Reserve: 26BCF in 2005 – source US BLM
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2- Store – if possible - crude helium in-ground for future use as in the Cliffside system in the U.S.
“Capturing” Helium Molecules at the Source
Helium Storage
Existing Pipelines To Locations w/out Helium Recovery
Existing Pipelines To Locations w/ Helium Recovery
Helium Recovery
Unit
Storage Natural
Gas Fields
1- Install a facility that processes helium-bearing natural gas currently being sent to areas that do not recover helium.
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Recovering/Refining Crude Helium Contained in Natural Gas as a By-Product, Requires Additional Operating Cost of $20 to $30 per Thousand Cubic Feet which results to a Product Liquid Helium sold on a wholesale basis at $50 to $60 per Thousand Cubic Feet.
Working Further down the Helium Value Chain Requires Very High Investments and a Creation of a Core Business Similar to Industrial Gas Companies.
Improving Overall Profitability
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Helium Processing Schematic
PSA
Process
Control
Process
Control
Crude Helium FEED GAS
N2
Companders
N2RecycleComp.
Nitrogen
Separation
Cold Box
Helium Separation
Part of Helium
Liquefier
Part of Helium Purifier
Part of LIN ProductionSupport
Equipment
HeliumRecycleComp.
HeliumLiquefier
HeliumExpanders
CompressionFeed Gas
Vent N 2
Liquid Helium Storage
Liquid He
Liquid NitrogenStorage
LIN toShields
Purge N 2
System
Waste Gas
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Downstream of the Helium Chain
LHe 11,000 gal
BHe 180,000 cf
WorldwideTransfills
TRANSFILL AND PACKAGING
SU
END
ERS
Bulk LiquidTrailers
(Containers)
Tube Trailers,Banks,
Modules
Tube Trailers
Dewars
Cylinders
Helium, Specialty Gases
SALES & DISTRIBUTION
LHe 11,000/15,000 gal
LHe 11,000 gal Iso Containers
PRODUCTION, STORAGE, LOADING AND SHIPPING
`
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Conclusion
Helium, if Present in Native Natural Gas, Grants a Unique Opportunity to Natural Gas Processing, to Diversify from Oil & Gas Industry, and to Generate Additional Revenue.
Oil & Gas Producers Will Want to Focus Resources on Finding and Producing Natural Gas rather than Have the End-User Refined Helium Market and its Expansion Default to Them.
An Industrial Gas Company Provides:– a Collection of Assets and Services that Help Link
Helium Supply with Demand– the Ability to Link the Oil & Gas Producer to the End-
User in the Value Chain.– The Focus to Expand the Refined Helium Business
Thank you
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