LNG Basics for Petroleum Engineers Michael Choi Retired

LNG Basics for Petroleum Engineers Michael Choi Retired 1

Primary funding is provided by The SPE Foundation through member donations and a contribution from Offshore Europe The Society is grateful to those companies that allow their professionals to serve as lecturers Additional support provided by AIME Society of Petroleum Engineers Distinguished Lecturer Program www. spe. org/dl 2

Present an Overview of LNG Plant • • • Oman LNG Plant • • Why LNG? Pre-Treatment Required Typical Multi-Trains Plant Natural Gas Liquefaction Thermodynamics Commercial Liquefaction Processes Equipment for Liquefaction Unique Auxiliary Facilities Novel Plant Concepts Concluding Remarks 3

Stranded Gas Looking for Markets • LNG Proved to be Most Economic for Distances >1, 500 Mile • Volume Reduction of 600: 1 • Transported in Insulated Tankers @ -162 C & 1 atm. Supply Demand 4

LNG Process & Equipment ? Big Refrigeration System • • • Compressor/Driver Refrigerant Condenser Evaporator (Process Heat Exchanger) Similar to the AC System in Our Home! 5

Typical 2 -Train LNG Plant Make. Up Fuel Gas Gathering Train 1 Gas Inlet Gas Reception 1. 5 Bcfd Fuel Inlet Gas Treating NGL Recovery Liquefaction LNG Storage LNG Liquid Train 2 Condensate Stabilization 8 Mtpa (1. 1 Bcfd) NGL Fractionation Propane Storage Propane Butane Storage Butane Condensate Storage . 73 Mtpa (27 Mbpd) . 5 Mtpa (17 Mbpd) Condensate 1. 2 Mtpa (34 Mbpd) 6

Typical 2 -Train LNG Plant Make. Up Fuel Gas Gathering Train 1 Inlet Gas Reception 1. 7 Bcfd Fuel Gas Inlet Gas Treating NGL Recovery Liquefaction LNG Storage LNG Liquid Inlet Gas Reception NGL Recovery Inlet Gas Treating • Pipeline Manifold • for. Scrub Column/KO • Amine CO H 2 S Removal NGLafter C 3 Pre-Cool 2& Train 2 NGL Fractionation • Pig Receivers • Primarily C 4+ to Prevent Freezing • <50 ppm & < 4 ppm • Deethanizer • Inlet Separator • LNG Heat Value for US & • Compression Sulfur Recovery Unit if. Important H 2 S • Vapor Condensate European Markets • Slug Catcher • Mol Sieve Dehydration* • Depropanizer. Stabilization & Treating • 1, 070 btu/scf Max • < 100 ppb • 95% & 200 psig VP Condensate Stabilization • Need Turbo-Expander for High • Mercury Vapor Removal* • <. 5 ppm H S & <15 ppm S • Multi-Stage Column 2 C 3+ Removal • Activated Carbon Adsorber • Debutanizer &Compressor Treating • Vapor • 95% & 70 psia psig. RVP VP @100 F • 10 -12 • <. 5 ppm H 2 S & <15 ppm S • De-Odorized 9 Mtpa (1. 2 Bcfd) Propane Storage Propane Butane Storage Butane Condensate Storage . 73 Mtpa (27 Mbpd) . 5 Mtpa (17 Mbpd) Condensate 1. 2 Mtpa (34 Mbpd) 7

180, 000 M 3 LNG Tank • Full-Containment Tank to Reduce Impound Area & Improve Safety • Approx. 75 M Dia x 40 M H • Insulated for <. 05%/D of Boil-off • Top Entry In-Tank Pumps • Total Capacity Based on Tanker Size (135, 000 M 3) • Plus 4+ Days Production 8

Inside the Tanks Single-Stage Multi-Stage Tank with Pump Caissons 9

LNG Loading System • • 16” Chiksan Type 3+1 – LNG Arms • 3, 500 M 3/Hr/Ea. • 10, 500 M 3/Hr • 140 K M 3 Tanker 4+1 – Systems • 14, 000 M 3/Hr • Qmax & Qflex • 200 K+ M 3 1 – Vapor Return 10

Cost of Refrigeration Methane or Nitrogen Cost/Btu Removed Ethylene -162 C Propane Temperature Air/Water 25 C 11

Natural Gas Liquefaction Processes 25 C Gas Cooling Condensation Temperature Min. DT Liquid Sub-cooling -162 C H (Enthalpy - Heat Removed) 12

Cascade LNG Process Most Straight Forward of All Processes Kenai Plant Continuous Operation 1969 Co. P License, Plant Build by Bechtel 80 F Propane Refrig. 1 st Stage Temperature • • • Co. P Optimized Cascade Refrigerant Cycle 2 nd Stage 3 th Stage 1 st Stage Ethylene Refrig 2 nd Stage 1 st Stage -260 F Methane Refrig. 2 nd Stage . 3 th Stage H (Enthalpy - Heat Removed) Kenai, Alaska 13

C 3 Precooled – Mixed Refrigerant Process • • • Most Widely Used Licensed by APCI 1 st Plant in Algeria Operating Since 1972 Plants Built by KBR, Chiyoda, JGC, FW Qatar. Gas LNG Plant 14

APCI AP-X Process • • Largest Train Capacity @ 8 Mtpa Overcome Spiral Wound MCHE Limit First Unit Started in 2009 (QG-II) No Plants Outside of Qatar APCI Supplies • • Process Design Cold Boxes Spiral Wound Exchanger Turbo-Expanders 15

All Processes Use Similar Equipment • • • GE MS 7001 FB Gas Turbine Most New Plants Use Large Gas Turbine (& Combined Cycle) to Drive Refrigerant Compressors Some Older & Smaller Trains Have Steam Turbine Drives Many Peak Shaving Plants on Electric Drives Use Large Process Type Centrifugal Compressors Main Difference is in the Cryogenic Heat Exchangers 16

Main Cryogenic Heat Exchanger Use by Mixed Refrigerant Process Air Products & Chemicals & Linde: Spiral Wound Ex. • Max. Diameter: 5, 030 mm • Height: ~55 m • Stainless Steel Core • 25 mm Aluminum Tubing • Externally Insulated • Chill & Liquefy Gas – From – 34ºC to – 152ºC – At 55 to 69 Barg 17

APCI’s MR Main Cryogenic Heat Exchanger (MCHE) Spiral Wound Design 18

Heat Exchanger for Cascade Process Plate Fin Exchanger Cold Box Configuration • Many Manufacturers • Use Extensively in Air Separation • Cascade & Other LNG Processes 19

Advances in LNG Plants Onshore Conventional Design Near-shore GBS Design Offshore Steel or Concrete Floater 20

FLNG is about to be Reality Shell Prelude • Floated out of dry dock in Dec. 2013 • 3. 6 mtpa of LNG capacity • Start-up expected in 2016 Petronas Kanowit • EPC in progress • 1. 2 mtpa of LNG Capacity • Scheduled for deployment in 2015 ? 21

Conclusions • LNG Liquefaction Process Same as AC System in Our Home • Pre-Treatment Facilities Can Dwarf Liquefaction System – Mole Sieve Dehydration & Mercury Removal Required – Gas Treating & NGL Extraction May be Needed – Stabilized Condensate & Fractionated NGL Add Value • LNG Exchangers, Storage & Loading Systems Are Unique • Commercial Liquefaction Processes Well Proven, Robust & Can be Optimized for Plant Size, Gas Composition, Sales & Commercial Needs • Novel Near-Shore & Offshore Floating Concepts Are Developed 22

LNG ? 23

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