A LOOK AT THE DEVELOPMENT TREND OF A LOOK AT THE DEVELOPMENT TREND OF LIQUEFACTION TECHNOLOGY FROM LIQUEFACTION TECHNOLOGY FROM LIQUEFACTION TECHNOLOGY FROM CHINA’S LNG PLANTSMr. LI WEIMr. LI WEIVICE PRESIDENT OF PETROCHINA VICE PRESIDENT OF PETROCHINA NATURAL GAS MARKETING VICE PRESIDENT OF PETROCHINA COMPANYCOMPANYJAN 2019
CONTENTS
INDUSTRIAL STATUS QUO: LNG PLANTS IN CHINA
MAIN ATTRIBUTES OF MAIN ATTRIBUTES OF LIQUEFACTION INDUSTRY IN CHINA
COMPARATIVE TECHNICAL & ECONOMIC COMPARATIVE TECHNICAL & ECONOMIC ANALYSIS OF DOMESTIC AND WORLD LNG PLANTS
ANTICIPATING TREND OF NATURAL GAS ANTICIPATING TREND OF NATURAL GAS ANTICIPATING TREND OF NATURAL GAS LIQUEFACTION INDUSTRY
1
2
3
4
1/23
INDUSTRIAL STATUS QUO: LNG PLANTS IN CHINA
INDUSTRIAL INDUSTRIAL STATUS QUO: STATUS QUO: LNG PLANTS IN CHINALNG PLANTS IN CHINA
01/
2/23
Zhongyuan Green Energy, was put into production with a capacity of 150,000 Nm³/day
2001
China's LNG market experienced explosive growth and LNG production capacity increased significantly.
2011-2013The total supply of LNG plants in China was 10.05 Million tons.
As of the End of 2017
190 Plants, 28 Mtpa
190 LNG plants have been put into operation in China with total capacity of 110 million Nm³/day, approx. 28 Mtpa in total.
2017
Industrial Status Quo: LNG Plants in China
China's First LNG Plant
3/23
The remaining of production capacity isdistributed in other provinces.
Location:
LNG Plants mainly built and locatedin the Midwest and North Chinaregions, Such as provinces of InnerMongolia (20%) and Shaanxi (17%).
The remaining of production capacity isThe remaining of production capacity isThe remaining of production capacity is11%
Sources: Zhuo Chuang Information 卓创资讯
Provincial Map of LNG Capacity Distribution (2017 )
Industrial Status Quo: LNG Plants in China
200%
177%
111%88%
66%77%
555%
66%
33%
4/23
Sources: Zhuo Chuang Information 卓创资讯
Resources:PNG:73%, Rest: 27%
In recent years, the growth rate ofnew LNG plants based on pipelinegas sources have slowed downgradually, and the newly built projectsare mainly unconventional naturalgas-based, such as COG, CBM, SNG,SATG…
PNG
COG
CBM
SNG
SATG
PNG - Pipeline Natural GasCOG - Coke Oven GasCBM - Coalbed MethaneSNG - Synthetic Natural Gas(Coal Based)SATG - Synthetic Ammonia Tail GasSG - Shale Gas
Composition Diagram of Gas Supply in China (2017)
SG
Industrial Status Quo: LNG Plants in China
5/23
Industrial Status Quo: LNG Plants in China
LNG Plants of CNPC:Since 2010, CNPC has built 24LNG plants, of which 21 arebuilt and 3 are underconstruction. 01 02 03
The plants are mostlybuilt on gas-rich areas,mainly allocated in thenorthwest, the BohaiBay and the southwestof China
21 Plants in operation 3 Under construction
Total design processingcapacity: 22.9 millionNm³/day.
Capacity: 22.9 Nm³/day
6/23
Industrial Status Quo: LNG Plants in China
0 1000 2000 3000 4000 5000 6000KaramayGolmud
LunnanHotanHami
GansuJincheng
AnsaiQianlishan
XilaifengDengkou
Luyang Lake Tai'an
BazhouRenqiu 2nd Phase
DagangTai'an Shenzhen Gas
PanjinHuanggang
Guang'anGuangyuan
ZhaoqingChengmaiSongyuan
Unit: 1k Cbm
Distribution Map of CNPC LNG Plants
7/23
Design Capacity: single train with capacity of 1.2 Mtpa, which has been applied in CNPC’sHuanggang LNG plant (put into operation in 2014). With self-designed methane refrigerationsystem and methane-based refrigerant, efficiency of cooling process and energy consumptionare significantly improved.
Capacity: singleHuanggang LNG plant
and methanesignificantly improved
2 Mtpa, which2014). With self-self-self
of cooling process
single train with capacity of 1.2plant (put into operation in 2014
methane-based refrigerant, efficiencyimproved
Industrial Status Quo: LNG Plants in China
Import SubstitutionHuanggang LNG Plant
1. An improved Cascade Refrigeration Cycle (CNPC CASCADE):
Incorporating with experiences ofIncorporatingdesignIncorporatingIncorporatingIncorporating
andwith experiencesIncorporating
operationexperiencesexperiencesexperiences
ofexperiencesexperiencesexperiencesexperiences
of smallofofexperiences
anddesigndesignmediummedium-
andand operationoperationandandandandandandandandmedium--sized
operationoperationoperationoperationoperationoperationoperationoperationsizedsized LNG
operationoperation ofofofofofofoperationoperationoperationoperationLNG plants,
smallsmallsmallsmallsmallsmallsmallsmallplants, China
andandandandandandandandandandChina hasmediummedium
formedmediummediummediummediummediummediummedium-formedformed a
sizedsizedsizedsizedsizedsized LNGLNGLNGLNG-sizedsizedsizedsizedsizedsizedsizedsized-aa number
LNGLNGLNGLNGLNGLNGnumbernumber of
plants,plants,plants,plants,plants,plants,plants,plants,plants,plants,ofof LNG
ChinaChinaChinaChinaChinaChinaChinaChinaChina hashashashashashasplants,plants,plants,plants,plants,LNGLNG liquefactionformedformedformedformedformed aaaaaa numbernumbernumbernumbernumbernumbernumbernumber
technologies,
8/23
REFRIGERATIONEQUIPMENT
ELECTRICAL INSTALLATION
CONTROLSYSTEMs
LOADING SYSTEM OTHERS
HV MotorInverter
DCSFGSSIS
Skid-mounted LNG loading system
Propylene compressorEthylene compressor
Methane Gas CompressorBOG Compressor
Regeneration compressorEvaporatorCool Box
Heat conduction oil furnaceSwitching valve of molecular
sieve Amine circulation pumps
Industrial Status Quo: LNG Plants in China
All listed equipment are able to substitute the import products
Import Substitution:
9/23
0PropyleneEEthylenethylene
Methane Gas Methane Gas Methane Gas thylene
Methane Gas thylene
CompressorMethane Gas CompressorMethane Gas
REFRIGERATIONEQUIPMENT
PropylenePropylene
01
All listed equipment are able to substitute the import products All listed equipment are able to substitute the import products
0HV MotorInverter
compressor
REFRIGERATION ELECTRICAL INSTALLATION
compressor
02
All listed equipment are able to substitute the import products All listed equipment are able to substitute the import products
0DCSFGS
INSTALLATIONCONTROLSYSTEMs
DCS
03
All listed equipment are able to substitute the import products All listed equipment are able to substitute the import products
0Skid-mounted LNG
loading system
LOADING SYSTEM
04
All listed equipment are able to substitute the import products All listed equipment are able to substitute the import products
0Switching valve of molecular
OTHERS
Heat conduction oil furnace
05
CNPC-DMR, independently designed by CNPC, has strong adaptability to the environment and feed gasconditions. In order to keep the structure compact and reduce the range of pressure drop, the projectequips with plate & fin type cold box as the main heat exchanger. The technology has been successfullyapplied to Ansai LNG plant (0.5 Mtpa) and Taian LNG plant (0.6Mtpa), which were put into operation in2012 and 2014 respectively.
Industrial Status Quo: LNG Plants in China
ANSAI Plant TAIAN LNG TAIAN LNG Plant
2. Dual Mixed Refrigerant Liquefaction Cycle (CNPC-DMR)CNPC-DMR,conditions
2. Dual Mixed Refrigerant Liquefaction Cycle (CNPCCNPC, has strong
compact and
Industrial Status Quo: LNG Plants in ChinaIndustrial Status Quo: LNG Plants in China
ANSAI PlantANSAI Plant
2. Dual Mixed Refrigerant Liquefaction Cycle (CNPCDMR, independently designed by CNPC,
. In order to keep the structure
Industrial Status Quo: LNG Plants in ChinaIndustrial Status Quo: LNG Plants in China
2. Dual Mixed Refrigerant Liquefaction Cycle (CNPC
Import Substitution
10/23
MAIN ATTRIBUTES OF LIQUEFACTION INDUSTRY IN CHINA
MAIN MAIN ATTRIBUTES ATTRIBUTES OF LIQUEFACTION INDUSTRY IN CHINA
02/
11/23
Main Attributes of Liquefaction Industry in China
Over 20 Provinces.Easily access to upstream resources and downstream local market.
Widely Distributed
Capacity: mainly in the range of 0.1 – 0.5 Mtpa;Low requirements for initial investments, prompt response to market;A lot of plants have been invested by private companies.Various resources: Coalbed methane, associated gas, shale gas, pipeline gas
Size are mainly small
Gradually replace import equipment and technologies with optimized domesticsubstitutions, by taking advantage of vast production experience and practicalcondition, such as N2 expansion, N2-CH4 expansion, SMRC, C3/MRC, DMR.
Localization of Liquefaction Technologies
12/23
Main Attributes of Liquefaction Industry in China
For small LNG plants with capacity of 5,000-30,000 Nm3/day, a skid-mounted integrated solution is popularly used. Advantages: low investment;less land required; easy commissioning and maintenance; Suitable forenergy supply in remote area; reusable.
Skid-Mounted
Meet the different needs of various end users without accessing to thepipeline, such as remote communities, vehicles & boats, and distributedenergy. (consumption volume as vehicles’& boats’ fuel was 10 bcm in 2017)
Meet different needs of various end users
As an efficient alternate of peak-shaving and emergency supply tocity gas.
Alternative storage supply to city gas
13/23
COMPARATIVE ANALYSIS:TECHNICAL & ECONOMIC SPECS OF CHINA AND WORLD LNG PLANTS
COMPARATIVE COMPARATIVE ANALYSIS:ANALYSIS:TECHNICAL & ECONOMIC TECHNICAL & ECONOMIC
03/
14/23
Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of China and World LNG Plants
Investment Scale of World LNG Plantsof World LNG PlantsSource: IHS Markit
15/23
LNG LNG PLANT
CAPACITCAPACITY
CAPACITCAPACITY Y Mtpa
INVESTMEINVESTMENT $/t
OPERATIOPERATION
RESOURCRESOURCES
Jincheng 0.29 418 2016 PNGBazhongTongkai 0.34 341 2015 SG
Huanggang 1.2 445 2014 PNG
Tangshan TangSteel 0.12 475 2014 COG
Ansai 0.5 346 2012 PNGGuang’An 0.23 352 2012 PNG
Baotou 0.39 242 2010 PNGHuixin 0.2 304 2010 PNG
Average investment of China's small and medium sized LNG plants in 2010-2016: US$365/t.
• The investment scale of large LNG plants isincreasing gradually. From 2009 to 2017,the unit investment cost is between
tobetween $
20172017$5002017,500-
$the unitthe$1500
unit1500/t
investmentinvestmentunit1500/t. The average investment of China's
small and medium sized LNG plants in2010-2016 is
mediumisis $mediummedium
$$365medium
365365/t.
Investment Scale of China’s LNG Plants : $240-$500/tpa
0.290.29JinchengJincheng
0.34Bazhong
0.12Tangshan TangSteelTangSteel
0.23Guang’An
0.39
Brownfield
Greenfield
Floating
OPERATIINVESTMECAPACITCAPACIT
Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of China and World LNG Plants
LNG PLANT CAPACITY Mtpa
Power Consumption
Kwh/t
ProcessingTechnology Remark
Yamal 11.00 258 API C3MR
LNG Canada 14.00 243 SHELL DMR Feasibility Study
Huanggang 1.20 324 CNPC Cascade
Taian 0.60 358 CNPC DMRGuang’An 0.25 443 B&V PRICO
Qinshui 0.50 376 LINDELIMUM
Power Consumption of China and World LNG plants
Currency: 1 USD = 6.9 CNY
LNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG Canada
Guang’An
Huanggang
USD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNY
16/23
0.65
1.33 1.441.58
1.211.42
1.29
0
0.5
1
1.5
2
Comparison of Operation Costs Between World and China LNG Plants
Sabine Pass Gorgon Wheatstone Yamal Huanggang Ansai Guang’an
1MMBtu ≈ 28Nm3 NG 1 USD = 6.9 CNYSource: The Oxford Institute for Energy Study
Huanggang Guang’an
Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of China and World LNG Plants
Uni
t: $/
MM
btu
17/23
0.65
1.291.42
1.21
1.58
Study 17/23
ANTICIPATINGTRENDOF THE NATURAL GAS LIQUEFACTION INDUSTRY
ANTICIPATANTICIPATINGINGANTICIPATTRENDTRENDOF THE NATURAL GAS OF THE NATURAL GAS
04/
18/23
1. Scale and liquefaction technology of new LNG plants are more adaptable to market demand
• The world's LNG liquefaction capacity hasexperienced the path from a small-to-large andeventually returned to the level that is moreadaptable to market. In order to meet the needsof various markets, while large-scale LNGproduction lines are developing rapidly, smallLNGs will receive the same attention andaccelerate development.
Number of trains Commissioned vs Average Train Capacity 1964-2023
Anticipating Trend of Natural Gas Liquefaction Anticipating Trend of Natural Gas Liquefaction Technology
Source: IHS Markit 19/23
Anticipating Trend of Natural Gas Liquefaction Anticipating Trend of Natural Gas Liquefaction Technology
1. Scale and liquefaction technology of new LNG plants aremore adaptable to market demand
20/23
The larger plant with a risk ofhigher loss of production in theevent of a shut down when marketchanges.
02.Lower Risks
With the intent of reducingconstruction costs through smallertrains and/or a modular design.
01.Lower Cost
Smaller trains can reduce theamount of volumes that need to becontracted prior to reaching an FID.
03.Easier to Reach FID
Overall, the LNGplant scale iseventually dictated bymarket demand, localstrength oftechnology andequipment, and siteconditions.
2. Reducing energy consumption and pollution emissions
• It is well known that natural gas liquefaction is a high-energy production process. Therefore, only by improving LNG production efficiency and reducing energy consumption and emissions in the production process can LNG continue to strengthen its vitality in the world energy field.
• How to reduce the impact of the LNG liquefaction project on the environment during the construction process and related equipment in the manufacturing process is also a critical point to be concerned by practitioners.
Anticipating Trend of Natural Gas Liquefaction Anticipating Trend of Natural Gas Liquefaction Technology
21/23
CNPC Improved Cascade Cycle
BreakthroughBreakthrough: BreakthroughBreakthroughSingle train Single train Capacity: Single train Capacity: Capacity: 3.5 million tons/yearCapacity: Capacity: 3.5 million tons/year3.5 million tons/year(design power consumption (design power consumption 306kwh/t)
Import Substitution Equipment:
Import Substitution Equipment: Centrifugal compressors of Centrifugal compressors of
Propylene , Ethylene, & Propylene , Ethylene, & Methane
Methane Large heat exchangers
CNPCCNPC-CNPC-DMRBreakthroughBreakthrough:BreakthroughBreakthrough:
Single train 1. Capacity1. Capacity:
Single train Single train Single train 1. Capacity: 2.6 million tons/year1. Capacity1. Capacity1. Capacity: 2.6 million tons/year2.6 million tons/year2.6 million tons/year2.6 million tons/year
(design power consumption (design power consumption (design power consumption 290kwh/t
(design power consumption (design power consumption 290kwh/t)
2. Capacity2. Capacity: 290kwh/t290kwh/t290kwh/t290kwh/t))
2. Capacity: 5.5 million tons/year2. Capacity2. Capacity2. Capacity: 5.5 million tons/year5.5 million tons/year5.5 million tons/year5.5 million tons/year5.5 million tons/year(design power consumption (design power consumption (design power consumption
260kwh/t(design power consumption (design power consumption
260kwh/t260kwh/t)Import Import Substitution Import Substitution Substitution
Equipment:Equipment:Equipment:Equipment:Mixed Refrigerant Compressor
Equipment:Equipment:Mixed Refrigerant Compressor, Mixed Refrigerant Compressor
Cold Box Mixed Refrigerant Compressor
Cold Box (Mixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant Compressor
Cold Box (plateMixed Refrigerant CompressorMixed Refrigerant Compressor
plate-Mixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant Compressor
plate-fin), Mixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant Compressor, Mixed Refrigerant CompressorMixed Refrigerant Compressor
fin), LNG Cold Box Cold Box Immersed
plateplateplateplateplateplateplateplateCold Box Cold Box Cold Box Cold Box Cold Box Cold Box ((Immersed Immersed Pump,
fin), fin), fin), fin), plateplateplateplate-fin), fin), fin), fin), Pump, Pump, Pump, Hv
LNG LNG LNG LNG LNG fin), fin), fin), fin), HvHv motor
The independent R&D andimplementation of smalland medium scale LNGplants have also stronglypromoted the developmentof China's larger LNGliquefaction technology andequipment.The independentlydeveloped CNPC-Improved Cascade Cycleand DMR processes havestrong adaptability to theenvironment and feed gasconditions. Moreover, thereis no restriction on theproprietary equipmentbundled by the patentvendor, the whole processis open to all equipmentmanufacturers.
Anticipating Trend of Natural Gas Liquefaction Anticipating Trend of Natural Gas Liquefaction Technology
3. China's LNG industry is ready for Large - scale production
CNPC Improved Cascade Cycle CNPCCNPCCNPC DMRDMRDMR
22/23
Anticipating Trend of Natural Gas Liquefaction Anticipating Trend of Natural Gas Liquefaction Technology
4. CHINA WILL CONTINUE ACTIVELY PARTICIPATE IN THE WORLD LNG INDUSTRY
23/23
Vendors EquipmentCold Box (plate-fin heat exchanger)
Refrigerant CompressorBOG Compressor
Hv MotorDCS
LNG Immersed Pump
• Chinese engineering companies and manufacturers are well prepared to participate in the construction of the world's LNG plants
THANK THANK YOU !
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