COURSE ON LNG

BUSINESS
Session-2
Basics of What, Why and How of
LNG
 What is LNG?
Physically Gas at ambient conditions in gaseous form

Gas when cooled to -163*C

becomes liquid and such
liquefied form of gas is called
Liquefied Natural Gas (LNG)
 Typical LNG Specification
Component Vol.%
Methane >85
Ethane <9.2
Propane <3
Butanes <2
Pentanes and heaviers <0.25
Sulphur compounds <10ppm
Inerts like Nitrogen <1
Gross heating value, kcal/scm 9340-10,420
Typical LNG composition
Different sources
 Why LNG?

Reasons for converting natural gas to

LNG
Gas is very Global environmental
difficult to store concerns force users to
Regional mismatch
and transport. consider use of cleaner
in demand/supply
For ease and energy source.
for gas across
globe. economics of Gas is the cleanest fossil
transport the fuel, hence everyone wants
Hence need to
volume of gas to increase use of gas and
transport gas
has to be hence need for easy access
reduced in different parts of world

Hence it is imperative to consider reduction in volume of gas for ease of

transport
Options for volume reduction of gas

Gas • PV/T is constant for all

practical purposes
property
Pressure • Increase the gas pressure
by compressing it
• Inverse proportionality.
Effect • Hence at 100 BAR (pipeline
pr) volume reduced by 100
times
• Reduce gas temp till it
liquefies
Temperature • Very predominant effect of
temp for liquefication
Effect • Volume reduced by 600
times
 Pros and Cons of volume reduction
options
Pressure reduction
 This option is used mainly for
transportation of gas by
pipelines and road/rail tankers
 Normally preferred for
transportation on land areas
 Pipeline transport results in
pressure drop of gas
transported
 Pressure drop is related gas
quantity, pipe diameter and
length of pipeline
Temperature reduction
 This option is used for
transportation of gas as LNG
 Becoming increasing popular
 Needs high capital and
operating cost
 Very suitable for carrying gas
across oceans
 This option provides flexibility
to both buyers and sellers in
terms choosing their
counterparts
 Gas volume reduction
Technoeconomics of options

When gas is required to be transported for more than 1500 miles LNG becomes an
economically viable options vis-à-vis pipelines
LNG value chain
How LNG is made?
 LNG Liquefaction Plant Schematic

Compressor

LNG

Pre- Liquefaction
Gas from treatment Plant LNG Tank
wells

Water
Carbon Dioxide
Sulphur compounds LNG Ship
C3+ compounds
Mercury
 LNG Technology suppliers

 AP-C3MR – designed by Air Products & Chemicals, Inc. (APCI)

 Cascade – designed by ConocoPhillips
 AP-X – designed by Air Products & Chemicals, Inc. (APCI)
 AP-SMR (Single Mixed Refrigerant) – designed by Air Products &
Chemicals, Inc. (APCI)
 AP-N (Nitrogen Refrigerant) – designed by Air Products &
Chemicals, Inc. (APCI)
 MFC (mixed fluid cascade) – designed by Linde
 PRICO (SMR) – designed by Black & Veatch
 AP-DMR (Dual Mixed Refrigerant) - designed by Air Products &
Chemicals, Inc. (APCI)
 Liquefin – designed by Air Liquide
 LNG Technology- critical aspects

• Energy
required for
liquefication is
major op. cost
Energy • Typically 8-
efficiency 10% of gas
processed is
consumed as
internal energy

• Type of
refrigerant
Indicator used and
cooling curve
for give an
energy indication
about energy
efficiency efficiency
 LNG Storage

• Double walled
• Filled with insulation between walls and gap under vacuum
Tank
construction

• Inside wall in contact with LNG is made of high Nickel steel.

• Outside wall would depend on type of containment
Tank material

• Generally classified by the type of containment system e.g. single containment, double containment or full
containment
• Choice depends on space availability
Type of tank

• Generally tank size is such that it can load/unload one full shipload of cargo. Thus, it is linked to size of ships used
for transport
• Normally multiple number tanks are used to facilitate loading/unloading operation independent of normal operations.
Number and
size of tank
Typical Single/Double containment tank
Typical Full containment tank
Typical Underground tank
LNG Transfer-To& From ships
Loading/Unloading arms
 LNG Ships

• MOSS (Spherical tanks)

• Membrane (using ship hull as support wall)
Types • Prismatic (normally used in very small size ships)

• Range from 25000 to 265000 M3

• Currently 140000 to 180000 is the most commonly used size of LNG ships
• Very small ships also coming back with newer application areas of LNG
Size especially LNG bunkering

• International Maritime Organisation (IMO)

• International Gas Carriers Code (IGC)
• Registration of ship in a country (Flag of ship)
Regulations • Local regulations, if any, in addition to these international standards
MOSS TYPE LNG SHIP
MEMBRANE TYPE LNG SHIP
Typical membrane ship construction
 Typical LNG receiving terminal and
Regasification facilities

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 Typical LNG receiving terminal

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 LNG Regasification
• Simplest and quite commonly used technology
Open loop • Sea water is used for LNG vaporisation and cold water discharged in sea
vaporiser

• Sea water or water/glycol mixture could be used in a closed loop so no cold water
discharge may be required
Closed loop • Such loops may also integrated with nearby gas turbine power plant or cold storage
vaporiser for cold energy recovery

• Very compact vaporiser due to high temperature of heat source

Submerged • Needs fuel consumption for vaporising
arc vaporiser

• Ambient air based vaporisers for small LNG regasification facilities

Other types • Smart air cooler developed by Mustang
TYPICAL LNG VAPORISERS
SUMMARY-LNG VALUE CHAIN
 COMMONLY USED TERMINOLOGY IN
LNG BUSINESS
Sr Term Used related to Indicates
1 TPA Capacity Indicates annual capacity of plant as Tonnes
per Annum
2 MMSCMD Flow Indicates flow rate of gas as million std. cubic
meters per day

3 BTU Calorific value or quantum This is old British unit but is quite commonly
of energy supplied/used used in LNG business.
Normally it is shown as MMBTU meaning
million BTU

4 KCAL/KJ ---DO--- This is a metric unit.

MMKCAL means million KCAL

5 Conversion factors BTU=0.252 KCAL

KCAL=4.12 KJ
1 MMTPA OF LNG=3.7-3.8 MMSCMD
gas(typical)
6 Lean or Rich LNG Composition of LNG If LNG contains significant C3+ then it is called
Rich LNG and LNG consisting primarily of
Methane is called Lean LNG
7 Boil off rate LNG vaporisation in tanks Due to environmental heat leak LNG tends to
evaporate from storage tanks.
Rate at which LNG evaporates from tank is
generally expressed as % of volume vaporised