Basic LNG Process - II

Introduction To
Natural Gas

Process Engineering & Energy Section – Technical Department

 Natural Gas

• Oil and gas are made of a mixture of

different hydrocarbons.

• As the name suggests these are large

molecules made up of hydrogen atoms
attached to a backbone of carbon.
 Natural Gas Source

How do Oil & Gas Form

Plant plankton Animal plankton
would fit on a pinhead!
10,000 of these bugs

Most oil and gas starts life as microscopic plants and animals that live in the ocean.
 Natural Gas Source

How do Oil & Gas Form

upload.wikimedia.org/wikipedia/en/0/04/Plankton.jpg

When the plankton dies it rains

down on sea bed to form an
organic mush

en.wikipedia.org/wiki/Image:Nerr0328.jpg

If there are any animals on the

Sea bed sea bed these will feed on the
organic particles
 Natural Gas Source

How do Oil & Gas Form

upload.wikimedia.org/wikipedia/en/0/04/Plankton.jpg
• However, if there is little or no
oxygen in the water then animals
can’t survive and the organic
mush accumulates

• Where sediment contains

more than 5% organic matter,
it eventually forms a rock
known as a Black Shale
 Natural Gas Source

How do Oil & Gas Form

As Black Shale is buried, it is heated.

Organic matter is first changed by the

increase in temperature into kerogen,
Kerogen which is a solid form of hydrocarbon

Around 90°C, it is changed into a liquid

state, which we call oil
Oil

Around 150°C, it is changed into a gas

Gas

A rock that has produced oil and gas in

www.oilandgasgeology.com/oil_gas_window.jpg
this way is known as a Source Rock
 Natural Gas Source

How do Oil & Gas Form

www.diveco.co.nz/img/gallery/2006/diver_bubbles.jpg • Hot oil and gas is less dense than the source rock
in which it occurs

• Oil and gas migrate upwards up through the rock

in much the same way that the air bubbles of an
underwater diver rise to the surface

Rising oil

• The rising oil and gas eventually gets

trapped in pockets in the rock called
reservoirs
 Natural Gas Source

How do Oil & Gas Form

www.diveco.co.nz/img/gallery/2006/diver_bubbles.jpg • During mid-Mesozoic times
around 150 million years ago,
conditions were just right
to build up huge thicknesses
of Black Shale source rocks

The world’s main oil deposits all formed in warm shallow seas
where plankton bloomed but bottom waters were deoxygenated
 Natural Gas Source

How do Oil & Gas Form • Some rocks are permeable

Impermeable and allow oil and gas to freely
pass through them

• Other rocks are impermeable

and block the upward passage
of oil and gas

• Where oil and gas rises up

into a dome (or anticline)
capped by impermeable rocks
it can’t escape. This is one
type of an Oil Trap.

Dome Trap
Permeable
 Conventional gas
• Relatively easy to extract
• From oil wells = associated gas
This gas can exist separately from oil in the
formation (free gas), or dissolved in the crude
oil (dissolved gas)
• From gas and condensate wells = non-associated
gas.
Gas wells typically produce only raw natural
gas. However condensate wells produce free
natural gas along with a semi-liquid
hydrocarbon condensate
 Conventional gas
The expression “associated gas” is used
to design the fact that some gas will
come out with the oil, and the two will
have to be separated in surface
installations.

The rock contains water, oil and

gas, the latter being both
dissolved in oil (associated gas)
for a part, and free in the field for
another part (“dome gas”)

The gas is “dry”: there is no oil in the rock,

just gas and… water, in spite of the
adjective “dry”. The gas is therefore not
dissolved in a liquid. It is therefore very
frequent to extract oil and gas at the same
time
 Natural Gas Source

Conventional well production

• Geologists find gas
reservoir
• Drill borehole
• Case well in steel and
concrete
• Gas flows upward
• Captured into pipeline
 Natural Gas Source

Conventional well production

Drill here!

Earth Science World Image Bank Image #h5inor

• Seismic surveys are used to locate likely rock structures

underground in which oil and gas might be found
• Shock waves are fired into the ground. These bounce off layers
of rock and reveal any structural domes that might contain oil
 Natural Gas Source

Conventional well production

• Once an oil or gas prospect has been

identified, a hole is drilled to assess the
potential

• The cost of drilling is very great.

On an offshore rig, it may cost
$10,000 for each metre drilled.

• A company incurs vast losses

for every “dry hole” drilled

en.wikipedia.org/wiki/Image:Oil_platform.jpg
 Natural Gas Source

• Although oil and gas are less

dense than water and naturally
rise up a well to the surface,
in reality only 40-50% of the
total will do so.

• To enhance recovery, a hole

is drilled adjacent to the well
and steam is pumped down. The
hot water helps to push the oil out
of the rock and up into the well.

© California Department of Conservation

 Unconventional Gas

• More Difficult to Extract

• Tight Sands Gas is trapped in sandstone and carbonate,
which has very low permeability, thus restricting its ability
to flow to the surface.
• CoalBed Methane is absorbed by the solid coal particles
in coal and extracted from coal mines usually by removing
water from the reservoir.
• Shale Gas is formed in low permeability shale rock and
trapped in clay particles or in small pores and micro-
fractures in the rock.
• Methane Hydrates refers to a form of porous ice that
traps methane molecules, the chief constituent of natural
gas. Hydrate deposits generally occur deep under Arctic
permafrost, and beneath the ocean floor. 1 m3 of gas
hydrate releases 164 m3 of natural gas when extracted.
Unconventional Gas
Unconventional Gas
Methane Hydrate
Methane Hydrate
 Hydrocarbon Family

Name Formula Melting Point (C) Boiling Point (C) State at 25 C

Hydrocarbon

22
 Natural Gas
• Main Component is methane along with heavier
hydrocarbons such as ethane, propane, iso-butane,
normal butane, etc.
• Impurities : non-hydrocarbons, such as nitrogen,
hydrogen sulpide, carbon dioxide and some traces of
such compounds as helium, carbonyl sulpide and
various n-mercaptans.
• Generally saturated with water
 Natural Gas

• Natural gas is the earth's cleanest burning hydrocarbon.

• Its combustion does not produce ash residues, sulfur oxides,
and only negligible nitrogen. This sets it apart from all the
other fossil fuels.
• Natural gas forms organically over millions of years from
decomposing plant and animal matter that is buried in
sedimentary rock layers. Once formed the gas tends to migrate
through the pore spaces, fractures, and fissures in the
sediment and rocks.
• Some of this gas makes it to the surface naturally showing up
in seeps, while the other gas molecules move until they are
trapped in impermeable layers of rock, shale, salt, or clay.

24
 What is natural gas?

• These trapped deposits are the reservoirs used to recover

natural gas, typically located between 1 and 7.5 kilometers
deep.
• Natural gas is found throughout the world either by itself or in
association with crude oil, both under dry land and beneath
the ocean floor.
• Methane, or CH4, is the primary component of natural gas.
• When it is found in nature, raw natural gas may also contain
some mixture of butane, propane, and pentane gasses, as well
as some nitrogen, carbon dioxide, and water vapour.
• Prior to entering market the raw natural gas undergoes
processing, which purifies it into methane with some ethane.

25
 Composition
Typical
Range
Component Analysis
(mole %) (mole %)
Methane 95.0 87.0 - 97.0
Ethane 3.2 1.5 - 7.0
Propane 0.2 0.1 - 1.5
iso - Butane 0.03 0.01 - 0.3
normal - Butane 0.03 0.01 - 0.3
iso - Pentane 0.01 trace - 0.04
normal - Pentane 0.01 trace - 0.04
Hexanes plus 0.01 trace - 0.06
Nitrogen 1.0 0.2 - 5.5
Carbon Dioxide 0.5 0.1 - 1.0
Oxygen 0.02 0.01 - 0.1
Hydrogen trace trace - 0.02
Specific Gravity 0.58 0.57 - 0.62
Gross Heating Value (MJ/m3), dry basis * 38 36.0 - 40.2
 Natural Gas has two general forms

• Thermogenic – From breakdown of fossil organic

matter below earth’s surface
• Hundreds of feet to miles below surface
• Need heat and pressure

• Biogenic – From breakdown of organic matter at

earth’s surface.
• Decomposition without oxygen
• Wetlands, garbage dumps

27
 Natural Gas
History of Natural Gas
Natural gas was used by the Chinese in about 500 BC (possibly even 1000 BC). They
discovered a way to transport gas seeping from the ground in crude pipelines of
bamboo to where it was used to boil salt water to extract the salt, in the Ziliujing
District of Shiucian.

The world's first industrial extraction of natural gas started at Fredonia, New York,
USA in 1825.

28
 Natural Gas

History of Natural Gas

In the 19th century, natural gas was usually obtained as a by-product of producing
oil, since the small, light gas carbon chains came out of solution as the extracted
fluids underwent pressure reduction from the reservoir to the surface

Unwanted natural gas was a disposal problem in the active oil fields. If there was not
a market for natural gas near the wellhead it was prohibitively expensive to pipe to
the end user. Unwanted gas was usually burned off at oil fields

29
 History of Natural Gas

 For too long was the ugly ducking

 Could not be transported
 Could explode easily
 Was prices as waste
 Was flared
 Was considered scarce

 Evolution:
 World War II created gas highway era
 Post-war gas use became serious
 Environmental bans on other fuels refocused
attention on Natural Gas
 Long safety era eliminated gas fear
 Natural Gas become everyone’s 1st energy choice as
21st century dawned

30
 Natural Gas

History of Natural Gas

Today, unwanted gas (without a market) associated with oil extraction often is
returned to the reservoir with 'injection' wells while awaiting a possible future
market or to repressurize the formation, which can enhance extraction rates
from other wells

By 2009, 66 trillion cubic meters (or 8%) had been used out of the total 850
trillion cubic meters of estimated remaining recoverable reserves of natural gas.

31
 Natural Gas

History of Natural Gas

Based on an estimated 2015 world consumption rate of about 3.4 trillion cubic
meters of gas per year, the total estimated remaining economically recoverable
reserves of natural gas would last 250 years at current consumption rates.

32
Natural Gas Components
N A T U R A L G A S

C1, Methane C2, Ethane C3, Propane C4, Butane C5+, Condensate

L N G

L P G

Natural Gas Liquids (NGL’s)

33
 Natural Gas

Wet Gas Vs Dry Gas

• Dry gas – mainly methane
• Wet gas – includes ethane, propane butane
General Properties of End Product

LNG/CNG

35
 Natural Gas Transportation

Natural gas utilization is all about the transportation!!

36
History of LNG

37
 What is LNG

 Colorless, odorless, non toxic hydrocarbon in very low

temperature liquid form (-160 C)
 Reduces volume of gas 600 times
 Mainly (90% +) is methane, the lightest component in
hydrocarbon family
 Cleanest hydrocarbon fuel, all contaminants are
removed prior to liquefaction process
 Carbon dioxide
 Sulphur compound
 Mercury
 Heavy Hydrocarbon
 Aromatics

38
 Gas Liquefaction

Liquefaction

Liquid Phase

Gas Phase

• Large volume • Small volume (1/600)

• Need big storage • Can easily be stored
• Less energy density • Higher energy density
• Not so flexible for transportation • Flexible for transportation

39
 Energy Density Relative to Gasoline
120%

100%

80%

60%

40%

20%

0%
CNG @200bar Methanol LNG Ethanol LPG Gasoline Diesel

40
 Price Comparison
USD/MMBtu

25

20

15

10

0
CNG LNG LPG Diesel

Note:
1. Assume crude oil price 100 USD/barrel
2. LPG is sold in tonnage basis
41
 Emission Level
Kg-CO2 per MMBtu

100

80

60

40

20

0
CNG LNG LPG Diesel

42
 Flammability Range
100%

• The flammability range is the distance from the leanest (LEL -

Lower Explosion Limit) to the richest (UEL - Upper Explosion 79%
80% Limit) mixture of fuel and air that will burn.
• Fuels with narrower ranges are safer to work with but are less
versatile because they offer less choice of air to fuel ratios
60%

40%

20%
13% 13%
10% 8%
6% 5%
0%
CNG Methanol LNG Ethanol LPG Diesel Acetylene

43
 Auto Ignition Temperature
Deg C
600
540
500
450 450

400

300
225 220
200

100

0
CNG LNG LPG Diesel Gasoline

The auto ignition temperature is the temperature at which a fuel will ignite without the
need for a spark or flame. In respect to auto ignition temperature LPG, CNG, and LNG are
much safer than gasoline or diesel because the auto ignition temperature is much higher.

44
 Utilization

TRANSPORTATION INDUSTRIES OTHERS

Power Plant

Petrochemical

45
 Utilization of Natural Gas

• Energy
• Electrical generation
• Heating / cooking
• Transportation
• Feedstock for industrial processes
• Plastics
• Organic chemicals
• Fertilizers

46
Natural Gas as Fuel
Natural gas is used to generate electricity, heat
buildings, fuel vehicles, heat water, bake
foods, power industrial furnaces.

47
Natural Gas as City Gas (Home)

Most of the natural gas consumed in homes is

used for space heating and water heating. It is
also used in stoves, ovens, clothes dryers,
lighting fixtures and other appliances.

48
Natural Gas as Industrial Raw Material
and Heat Source
Natural gas is used in a wide variety of manufacturing processes
Natural gas is used as both a raw material and as a source of heat

Natural gas is an ingredient used to make fertilizer, antifreeze,

plastics, pharmaceuticals and fabrics.

It is also used to manufacture a wide range of chemicals such as

ammonia, methanol, butane, ethane, propane and acetic acid

Natural gas is used as a heat source in making glass, steel,

cement, bricks, ceramics, tile, paper, food products and many
other commodities.

49
 Petrochemical

• Produce chemicals derived from petroleum or natural gas

• The main feedstock is natural gas, condensates (NGL) and other refinery
byproducts such as naphtha, gasoil, and benzene
• three main primary product groups according to their feedstock and
primary petrochemical product:
• Olefins include ethylene, propylene, and butadiene. These are the
main sources of plastics (polyethylene, polyester, PVC), industrial
chemicals and synthetic rubber.
• Aromatics include benzene, toluene, and xylenes, which also are a
source of plastics (polyurethane, polystyrene, acrylates, nylon), as well
as synthetic detergents and dyes.
• Synthesis gas (syngas) is formed by steam reforming between methane
and steam to create a mixture of carbon monoxide and hydrogen. It is
used to make ammonia, e.g., for fertilizer urea, and methanol as a
solvent and chemical intermediary. Syngas is also feedstock for other
processes

50
 LNG Distribution Chain

Regasification
Gas Fields LNG Plant LNG Shipping
Facility

End User

51
 World Natural Gas Reserves (proven)

Source: BP Statistical Review, 2013 52

 Indonesia Natural Gas Reserves

Indonesia proven gas reserve is 1.6% of world proven gas reserve

Source: ESDM 2012 53
 World LNG Production (Actual & Forecast)

Source: Wood Mackenzie 54

 Indonesia LNG Production
Indonesia
18.82

2013

World
223.03

Source: Wood Mackenzie 55

 World LNG Consumption
Indonesia
1.3

2013

World
234.53

Source: Wood Mackenzie 56

 Indonesia LNG Production vs. Domestic Use
Domestic
1.3

2013

2013 (in MMTPA)

Export
17.52

Source: Wood Mackenzie 57

 LNG Infrastructures (Supply Side)

Natuna D Alpha LNG Project

PT Arun (existing) Location : Natuna
Gas Reserve : 46 TCF (excl CO2)
Capacity : 10 MTPA Others: Potential Mini LNG Projects
Comissioning : 2022 (possible) Location : Kalimantan/Papua
Gas Reserve : marginal
Capacity : ~ 0.1 MTPA
Comissioning : 2015 – 2020 (possible)

Badak LNG (existing 22.5 MTPA) Tangguh LNG (Existing)

DS LNG Project
Location : Sulawesi Island
Gas Reserve : 1.4 TCF
Capacity : 2.0 MTPA
Comissioning : 2014

TIMOR
Abadi Floating LNG Project
Location : Timor Sea
Gas Reserve : 3.3 TCF
Capacity : 2.5 MTPA
Comissioning : 2020 (possible)
Source: Wood MacKenzie, Pertamina
58
 LNG Infrastructures (Demand Side)
Arun LNG Receiving Terminal (Conversion)
Location : Arun LNG Plant
Status : Proposed
Project Owner : Pertamina
Capacity : 1.5 MTPA (possible)
Commisioning : 2014 Other: Mini LNG Receiving Terminals
Location : Several Locations in Eastern Indonesia
Status : Proposed
Project Owner : Pertamina/Others
Capacity : Total up to 1.5 MTPA
Commisioning : 2014-2015

Lampung FSRU
Location : Lampung
Status : Proposed
Project Owner : PGN
Capacity : 1.5 MTPA
Commisioning : 2014

West Java FSRU East Java FSRU

Location : Jakarta Bay Location : Semarang
Status : Operation Status : Proposed
Project Owner : Pertamina (60%) – PGN (40%) Project Owner : Pertamina TIMOR
Capacity : 3 MTPA Capacity : 3 MTPA
Commisioning : 2012 Commisioning : ?

Source: Wood MacKenzie, Pertamina

59
 Natural Gas Transportations

Natural gas utilization is all about the transportation!!

PIPELINES IS CHEAPER THAN LNG IF THE

DISTANCE BETWEEN PRODUCER AND BUYER
• LESS THAN 5,000 KM, IF ON SHORE
• LESS THAN 2,000 KM, IF ON SHALLOW
• LESS THAN 1,000 KM, IF ON DEEP SEA

60
 Natural Gas can be compressed and liquefied

• Both reduce volume making it easier to

transport

61
 Gas
Volume 600

LNG CNG

V=1
V=3

Condition Condition
Volume 1/600 gas Volume 1/200 gas
Form Liquid Form Gaseous
Energy density 3 x CNG Energy density 1/3 x LNG
P atm P 200 bar
T -160 C T ambient

62
CNG – Compressed to 1% original volume
• Used as a fuel for vehicles
• Cars, trucks, buses, locomotives
• Some engines run on both CNG and gasoline
• Common in Iran, Pakistan, Argentina, Brazil
• Efforts to increase use in US

63
LNG – Liquefied to 1/600 of original volume
LNG – Cooled to -260oF

• Has 2.4 times more energy than CNG

• Transported via trucks and ships where pipelines not present
• Must be stored in cryogenic tanks

64
Electric power generation, industry, residences and commercial buildings were the major natural gas
consuming sectors in the United States during calendar year 2013. Only 0.14% went to use as a vehicle fuel.
Image by Geology.com using data from the United States Energy Information Administration.

65
 Business Chain

Plant
Gas Producers Operator

TRANSPORTATION RECEVING REGASIFICATION GAS DISTRIBUTION GAS USER

LIQUEFACTION FACILITY TERMINAL FACILITY
GAS FIELD
FACILITY

JILCO
Japanese
Buyers CPC

SELLER REP TRANSPORTER BUYER

66
 Bonds

UU MIGAS No 22 / 2001
Buyers

Sales & Purchase Agreement Plant Use & Operation Agreement

Transportation Agreement ADP

MEETING
P&S
MEETING

Transporter
PERTAMINA Badak LNG
CIF
SHIP OPS
MEETING

Seller Appointment Agreement PRODUCERMEET

ING
(Gas bagian PSC)

Seller Appointment Agreement

( Gas bagian RI ) PSC / Gas Producers
Processing Agreement

PSC Agreement GCM &

POMA
MEETING
EKGMC

67
 Gas Producers

OPERATED BY :

3%
OPERATED BY :

OPERATED BY :

15%
82%
BLOCK MAHAKAM
68
69
70
71
72
Bagged Natural Gas

73
Bagged Natural Gas

74
Bagged Natural Gas

75
Bagged Natural Gas

76
77
78
79
 Why LNG?

• Most gas is transported by pipeline - Why LNG?

• Volume advantage for storage and transportation
• Transport over wide and deep oceans
• Economic advantage vs. pipeline gas dependent on distance
• World Bank estimates 140 billion standard cubic metres of gas
was flared in 2011 (about 40% of the LNG traded), producing
360 million tonnes of CO2 without any beneficial heat or power
production
• Disadvantages of natural gas liquefaction:
• Energy intensive
• Capital Intensive
• Requires specialised terminals and carriers
• Purity Requirements
• Cryogenic handling (materials, safety)

80
86
 Basic Concept
Natural Gas
C1 N2
C2 C02 C02
C3 H2S H2S N2
C4 H2O H20
C 5+ Hg Hg
LISENCED PROCESS

LNG
COMMON PROCESS C 1 > 90 %
C3 C2
C4 C3
C5 + -160 C
CRYOGENIC
TECHNOLOGY

LNG

87
 Natural Gas Purification

CO2/H2S
Natural Gas
C1 N2 H2O
C2 C02
C3 H2S Hg
C4 H2O CO2 & H2S
C 5+ Hg REMOVAL C3, C4, C5+
UNIT H2O
REMOVAL N2
UNIT Hg
(DRIER) REMOVAL
UNIT Heavy HC
REMOVAL
UNIT LNG
N2 Removal
C 1 > 90 %
C2
C3

88
 Liquefaction Technology

PHILLIPS PROCESS

CASCADE LINDE PROCESS

TECHNIP PROCESS

MR PRICO PROCESS

TECHNIP PROCESS

MR PRECOLED
APCI PROCESS

89
 LNG Process in Badak LNG

CO2 REMOVAL DEHYDRATION FRACTIONATION LIQUEFACTION

(MCHE) STORAGE TANK
(ABSORBER & STRIPPER) (H2O & Hg REMOVAL) (SCRUB COLUMN)

FEED GAS
BOIL OFF TO
PLANT FUEL
CO2
KOD
4E-10 4E-12 LNG
STORAGE
4E-14 LNG
LNG
C2

MARINE LOADING
C3
CW C4 LPG
CW
CW STORAGE
HP Steam DEETHANIZER
DEPROPANIZER LPG
DEBUTANIZER

MARINE LOADING
C3 REFRIGERATION C5+
COMPRESSOR MCR REFRIGERATION
COMPRESSORS FRACTIONATION

90
 LNG Loading

DOCK #01 DOCK #02 DOCK #03

LNG RUNDOWN LINE

24D-1 24D-2 24D-3 24D-4 24D-5

250 M3/H 2500 M3/H

T/L 01
T/L 02
24D-6
T/L 03
T/L 04

T/L 05 250 & 1300 M3/H

T/L 06

91
 BOG Recovery System

19F-02 19F-05 19F-36 19F-21

DOCK #01
FROM 24C-10

SET 0.07
DESIGN 0.14
KG/CM2
KG/CM2

FROM T/L 01
24D-1 24D-2 24D-3 24D-4 24C-101 24D-5 24D-6

24C-5
DOCK #02
TO T/L 02

TO TR EF - FUEL GAS SYSTEM

TO TR AB - FUEL GAS SYSTEM

TO TR CD - FUEL GAS SYSTEM

DOCK #03

24K-8 24K-9 24K-1 24K-16

92
 LNG Trade

FOB CIF
FOB (Free On Board) : CIF (Cost, Insurance and Freight) :
Quantity of the sold LNG and its invoice are Quantity of the sold LNG and its invoice are
calculated and determined in loading port. calculated and determined in unloading port.

The parties concerned in Custody Transfer The parties concerned in Custody Transfer
Meeting in Loading Port: Meeting in Loading Port:
- Ship’s Master - Ship’s Master
- Buyer’s Representative - Seller’s Representative
- Seller’s Representative - Loading Master
- Loading Master
- Surveyor

Custody Transfer is led by Buyer’s /Seller’s Custody Transfer is led by Seller’s

Representatives. Representatives.

93