LP Gas Global Technology Conference, 2006

Propane Education and Research Council (PERC)

World LP Gas Association (WLPGA)

PEAK SHAVING WITH SNG

Gary D. Eaton

Ely Energy
th
11385 E. 60 Place S., Tulsa, Oklahoma 74146, USA

Keywords: SNG, peak, shaving, Wobbe, blend, interchangeability, replace, synthetic

Executive Summary not confuse LPG based SNG with methane based SynGas
A Context for Discussion from a naphtha cracker. And do not be offended by the
term SNG. Without apologies, SNG is a term borrowed to
A dangerous dependence on natural gas isn’t just an sugar coat the concept of fuel interchangeability using LPG.
American concern. Arguably, Europe has more to fear than Believe it or not, a discussion with lay people of synthetic
North America and Asia a little less. Most of us have natural gas is easier than the same discussion trying to
probably read that coming to our rescue is Liquefied Natural explain propane + air replacement. Jargon aside, LPG-Air
Gas, or LNG. The popular press suggests LNG is a “new” or SNG can play a both a strategic and tactical, albeit niche,
technology; that LNG will “replace” natural gas. Since LNG role in meeting specific energy needs.
is natural gas – I suppose they’re at least partially right.
These and similar observations allow coronation of LNG as
the natural gas industry’s main savior to supply and
deliverability issues. Clearly, LNG is a critical strategic tool.
It allows transportation of inter-regional gas to help meet
large scale demands where they exist. But LNG is not
perfect for all applications – it is slow to implement and
hugely expensive. For smaller, local supply and
deliverability issues, LPG can be a key. Blended with air,
LPG can be used to supplement natural gas via peak
shaving, base-load and back-up fuel applications.
This white paper begins with a short discussion of SNG – SNG NG
what is it. Second, we discuss the relevancy of
interchangeable fuels as either strategic or tactical tools in Figure 1: Simplified depiction of SNG and NG
today’s natural gas markets. Third, we discuss and evaluate interchangeability.
the opportunity for using SNG for peak shaving in a
somewhat typical natural gas dominated market (i.e.
The Background…
Hungary). This section of the paper also addresses the More than half a century has passed since the American Gas
infrastructure needs to make SNG commercially viable. To Association (AGA) published Bulletin 36 addressing fuel
avoid focusing only on central Europe, we look briefly at interchangeability. However, it is safe to assume our
opportunities for SNG use in South America and in industry is still not well informed on the concept of fuels
Pakistan. We conclude the white paper by providing a interchangeability. The same holds true for the derived
technical overview to the process of using SNG itself. benefits. Opportunities for fuel interchangeability occur
globally – Hungary, Chile, Argentina, Brazil and Pakistan
Our overall goal is to share awareness of the technology of
are but a few. Opportunities range from using SNG to
LPG-Air interchangeability and to stimulate thought in
supplement natural gas during peak demand periods (e.g.
using more LPG in both regional and global applications
peak shaving), using SNG during natural gas curtailments
within the broad natural gas markets.
(e.g. industrial back up), or using SNG as a base fuel prior
SNG: What is it? to the arrival of natural gas in a region.
To create SNG we dilute LPG vapor with air to a ratio of Using today’s high accuracy flow meters, PLC’s and
approximately 45% air and 55% LPG. In this paper we refer precision control valves, our ability to provide near perfect
to this blend as Synthetic Natural Gas, or, SNG for short. Do gas quality has never been better. That said, using LPG-Air
blending, or SNG, to simulate natural gas remains an under LPG (i.e. blends of propane and butane) varies and can alter
valued and nearly invisible application for LPG. the calorific value.
The Characteristics of SNG… For example, assuming the LPG is propane, an SNG
mixture to replace natural gas will have a specific gravity of
If the natural gas and the SNG have an identical or nearly about 1.29–1.31 and a BTU value of 1400–1500 BTU/Ft3.
identical Wobbe Index, they produce an equivalent amount
of energy and require the same amount of combustion air. Relevancy of Interchangeable fuels
Burners operating on SNG will not require pressure
Natural gas interchangeability strategies make sense when
adjustments and the measured and observed combustion
the economic investment to provide the interchangeable fuel
characteristics show essentially complete acceptance. Table
costs less than obtaining pipeline capacity to deliver the
1 illustrates the basic functional characteristics of SNG as
same amount of natural gas. In addition, an SNG system can
compared to NG.
be a tangible investment in both long term security and
flexibility of a gas supply.
CHARACTERISTICS INTERCHANGABILITY of NG and SNG

A significant number of utility SNG systems have been

FUEL
TYPE
TYP.
COMPOSITION TOXIC SAFE WOBBE
PRESSURE BURNER
ADJUSTMENTS ADJUSTMENTS
APPLIANCE'S
SAME
installed around the world. All of these have been
constructed to either supplement natural gas via “peak
METHANE
NG
(~95%)
NO YES Same NO NO YES
shaving” or to both precede the arrival of natural gas in a
SNG LPG + AIR NO YES Same NO NO YES region (e.g. natural gas pipeline is not yet constructed but
the desire is to have distributed natural gas equivalent
Table 1: Comparison on SNG to NG available), and then to augment as needed after natural gas
is present via peak shaving.
There are numerous quantitative techniques to measure
interchangeability. These techniques include Wobbe, Knoy, Today’s natural gas markets are not the same markets we
Weaver and others. knew in the 1970’s or 80’s. Today the natural gas industry
Wobbe Index is considered one of the better indicators of faces not one but two seasonal peak demand periods. The
the interchangeability. Wobbe Index can be generally traditional winter “heating” peak is now followed by an
defined as “energy flow”. It is calculated as the ratio of the emerging summer peak as natural gas is increasingly used
calorific value to the square root of the specific gravity
relative to air (i.e. SG air = 1). Figure 2 illustrates the basic
equation. Wobbe is used when “energy input” rather than
“gas flow” is of interest. This is the case for example, with a
gas appliance. With an appliance, the gas input rate is
controlled by the jet or burner. If the gas is supplied at a
constant pressure, the flow is proportional to the reciprocal
of the square root of the specific gravity.

FUEL INTERCHANGEABILTY
Wobbe Index
Natural Gas
SG = 0.6
H = calorific value =1017 BTU/SCF
0 = original gas
Figure 3: Illustrates the increased use of NG in power
m = SNG mix consisting of LPG and air.
generation (Courtesy of EIA – Annual Outlook 2004 –
2020)
Wobbe Index = 1017 = 1502 for “peak demand” power generation. This growing reliance
√ .60 √ 1.31m
on gas-fired power generation exerts even more demand on
Wobbe = 1312 gas deliverability. In the 1990’s we saw almost 95% of new
power generation capacity fueled on natural gas.
Figure 2: Wobbe calculation to compare energy value of Conventional wisdom suggested decades of low cost, clean
SNG vs. NG burning natural gas were in store. Now that wisdom itself is
in question.
Hence, energy input is proportional to the Wobbe index.
Such an index is necessary in cases where the feedstock With increased price variability and seasonal volatility, the
ability to strategically manage natural gas shortages is
critical. Using LPG/air blends to simulate and replace government to make a key decision: continue to subsidize
natural gas can be a powerful tool. gas prices to keep prices low or pass the new high prices on
to the consumers. With political stability the driving issue,
A municipality in the mid-west of the USA is currently
natural gas prices were kept low.
installing a propane based SNG system capable of supplying
25,000 Decatherms per day (i.e. 22 tons/h of propane) at As Figure 4 indicates, Hungary’s appetite for natural gas
pressures up to 160 PSIG. The system requires an since liberation from Soviet influence has been strong.
investment, excluding land, well in excess of 5 million Hungary’s natural gas grid covers nearly three quarters of
USD. They are installing this because it makes economic the country. Over 2600 of its 3600 towns and villages are
sense.
35

SNG is typically utilized in one of three ways

30

■ Peak Shaving Systems: Allows both NG local

distribution companies (LDCs) and industrial gas consumers 25

to supplement their NG during peak demand periods.

■ Base-Load Systems: Provide a “natural gas
20

equivalent” bridge fuel in regions where NG will be

implemented but is not yet available. Later the SNG system
15

will later revert to a peak shaving function. 10

■ Backup Systems: Allows industrial natural gas

customers to use SNG during curtailment periods, and, 5

allows taking advantage of arbitrage opportunities.

0
1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005
Interchangeable fuels should form part of a strategic and
tactical approach to energy management. Stripped to their Coal Oil Gas
essence, SNG systems are asset management tools. They Nuclear Hydro Other
can benefit either the demand side or supply side of the
natural gas (NG) market – or both at the same time.
Figure 4: Hungary’s primary energy use by source
Its all about options…
The June 2006 issue of Pipeline & Gas Journal contained served by natural gas. In fact, Hungary has the highest
an article titled, Reliability Means Key to Success for Gas proportion (45%) of natural gas use as a primary energy of
Marketers. The article addressed the concerns of industrial the entire 26 member IEA or International Energy Agency.
natural gas customers regarding their suppliers. The This organization, for those not familiar with it, is
concerns were: 1) reliability, 2) dependability, and 3) described, per their website, as an “intergovernmental body
trustworthiness. Cost of gas supply was not even committed to advancing security of energy supply,
mentioned! At a time when natural gas prices have economic growth and environmental sustainability through
exhibited manic behavior, energy manager’s seem most energy policy co-operation”.
concerned with “will I have gas…?”, not, “what will it cost Now, approaching two decades after the fall of the Soviet
me”. These concerns do not appear to be a US issue only. Union, the energy structure in Hungary remains artificially
Rather, the concern is a global issue, with each region supported by subsidies. To be fair, industrial and household
biased by its own supply and demand circumstances. gas prices have risen dramatically. They still, however,
A relevant question for gas users and gas suppliers then remain below full liberalization prices.
becomes, “what is my strategy for fuel switching?” In other Complicating Hungary’s situation, a tax imposed on heavy
words – what are my options? Let us look at an example of oil in 2004 resulted in nearly three hundred large
a natural gas market and the opportunities for using SNG for interruptible heavy oil customers converting to natural gas.
peak shaving to improve the security of gas supply. These former oil customers felt the opportunity to source
Hungary for Gas lower cost, “uninterruptible” NG was too good to be true.
They were right.
Hungary lies at the geographic heart of central Europe.
Poor in natural resources, this former socialist country The (semi) unexpected happened in January 2006.
enjoyed artificially cheap energy until the demise of Soviet GAZPROM cut off gas supplies to Ukraine in a dispute over
influence in 1989. When the Soviet Union disappeared - price. This reduction affected not just Hungary, but Austria,
access to cheap gas disappeared too. Russia began billing Poland, Slovakia, Italy, and the Czech Republic. MOL, the
based on world market prices forcing the Hungarian Hungarian National Oil and Gas Company, requested major
consumers of natural gas with interchangeable oil capability 7. Producing countries lack the infrastructure to bring
(i.e. natural gas to oil – not SNG….) should switch back to their LPG into the global markets. For example, Russia,
oil. Not as easily done as said. Kazakhstan, Turkmenistan, Libya, etc.
Derivative observations and ideas from the MOL study
As the natural gas shortage continued, Hungary’s gas grid
included:
threatened collapse. Pressure dropped to 32 bar g. The
vulnerability of gas supply – and the lack of real 1. Transport distances: the average transport distance
interchangeable fuel options became apparent. of Russian LPG is about 3400 km. There is nothing
Hungary does have a good natural gas storage network to be done about that fact – except work to mitigate
the impact
intended to help manage commodity pricing and buffer peak
consumption periods. Hungary’s winter peak typically 2. Bottle necks of Russian railcars: more investment
requires 86-90 million m3/day while summer peaks require in rail cars
about 18 million m3/day. Temperature sensitivity to gas a. Trans-loading Use changeable modern
consumption, however, is high. As an example, -1°C to - bogey or adjustable bogey types to reduce
handling costs
2°C requires an additional 2 million m3. When temperatures
drop below -3°C interruptible users should activate their b. Availability of European railcars
alternative fuel systems. Historical data indicates c. Compatibility of Russian and European
railcars and equipment
interruptions can average 19 days by year.
d. Offloading logistics and residual LPG
Could an Interchangeability Strategy Help? handling at trans-loading sites
The characteristics of any interchangeable fuel strategy
should provide: After digesting all of the above, the research suggested a
savings of 15-30% on transport and handling costs and 30-
• A reliable and (preferably) independent energy
40% savings based on 3-6 months seasonal storage. These
source.
assumptions required an appropriately located and designed
• An environmentally friendly energy source. LPG terminal to allow purchase of LPG at prices that could
help close the spread between high cost LPG and subsidized
• A flexible and transportable energy source. (e.g. NG. More economic purchasing combined with perhaps a
able to use rail, ships, barges and containers) tax rebate for industrial SNG use during prescribed periods
• An energy source that would allow seasonal could create a viable approach to aiding the risk
product purchases and storage and an acceptable management needs of Hungary’s supply strapped market.
ROI. The typical 19 days of natural gas interruption per year
could in theory generate sales of 43, 000 tons of LPG for
• A proven robust technology for interchangeability. use in Peak Shaving or SNG back-up markets. This would
SNG could fulfill this need– but there are other mitigating be about 20% of Hungary’s current annual LPG market.
problems in Hungary that have prevented LPG from being
recognized as a suitable option for peak demands. What this means…
Ultimately – the main problem is economic. The price of SNG technology is never more than part of an equation
world market LPG is about 3 times more expensive than the when it comes to energy management. But to consider using
equivalent subsidized NG based on a MJoule comparison. SNG requires an understanding of the overall LPG logistics
For the Hungarian market, logistics play a key role in the required to make the tactic viable. If supply and pricing are
economics of LPG. appropriate, SNG can be an attractive energy alternative to
natural gas for peak demand periods, off grid expansion
In 1996 a study by MOL identified elements of the Russian projects and industrial back up.
LPG import chain that significantly impact the ultimate cost
of LPG: Beyond Central Europe…
1. Transport distances As stated early, Hungary is not alone in terms of their gas
2. Bottle necks of railcars, especially in winter supply vulnerability. Since the mid-90’s Chile has
3. Trans-loading purchased essentially all their natural gas from Argentina.
4. European railcar availability Chile’s purchases have equaled about 70% of Argentina’s
5. Compatibility of Russian and European railcars and gas exports. In Chile, as elsewhere, electrical power
equipment generation is a substantial consumer of natural gas with over
6. Volume programming and residue handling at trans- 40% of all Chilean power relying on natural gas.
loading
In a scenario not dissimilar to what was observed in
Hungary in January 2006, April 2004 saw Argentina reduce
Chile’s natural gas supply. The valve was tightened and
flow to Chile was reduced by 14 percent or by about 2.3
million m3 per day. The reduction was in part due to
Argentina's reduced natural gas output as well as their rise
in domestic consumption. The reduction in flow to Chile
sent natural gas distributors and users scrambling for
options. One option was find an alternative natural gas
supplier. Chile reconsidered Bolivia but Bolivia tied
discussions on energy sales to restoration of access to the
Pacific – access she had lost to Chile during their 1880’s
war. That option – for the time being at least – was out.
Another tactical option was SNG. Fortunately, both Chile
and Argentina were familiar with using SNG. Both used it
to support their natural gas infrastructures. In fact, both
countries had installed numerous Peak Shaving Systems in
the last few years. Photo 1 is of a peak shaving facility Photo 2: SNG Blending System being installed at Chile
jobsite.

away. However, the May 2006 announcement by Bolivian

President Evo Morales to nationalize all foreign energy
assets in Bolivia certainly has escalated fear factors.

Brazil’s difficult situation is even more exacerbated since

Brazil, unlike Hungary and many other countries, lacks an
infrastructure to store natural gas for emergencies. Hence
they have no viable short-term options in place. This
environment again opens the door to the possibility of using
SNG either for Peak Shaving at the utility level or for larger
industrial gas clients. This could be especially attractive to
some of the LPG distributors who have seen their industrial
LPG market contract as natural gas becomes more prevalent
Photo 1: SNG Peak Shaving System, Bariloche, in the market.
Argentina (Photo courtesy of Camuzzigas, Argentina) Base Load of SNG…

owned by Camuzzigas, located near Bariloche. In addition to being used to augment inadequate natural gas
The primary gas company serving Santiago (Chile) as well supplies, or, as a curtailment period substitute, SNG can be
as two smaller gas utilities responded to the Argentine crisis used for true base load applications. There are many examples
by increasing existing SNG capacity and installing new ranging from Uruguay to China to Chile to Korea to Canada to
SNG systems. Photo 2 shows a modular SNG system being the USA to Pakistan and more. We will focus on Pakistan.
installed a few months after the crisis in Chile. A virtue of Interestingly, Pakistan has a mature history of using LPG
SNG that needs to be mentioned is the agility with which based SNG systems. Pakistan’s first base load SNG system
SNG can be used to respond to a crisis – unlike the process was commissioned over 30 years ago. The system served
of installing a complete LNG facility. Quetta City, the capital of Baluchistan providing 7,500m3/h
of SNG via a pipeline grid at approximately 2 bar g. The
Brazil, another developing natural gas market, also lives in system was installed by Indus Gas Company Limited who
the shadow of political instability regarding their natural gas merged in 1989 with Sui Gas Transmission Company and
supply. Bolivia provides nearly two-thirds of the natural gas Karachi Gas Company to form what is now Sui Southern
consumed in Brazil. Sales of natural gas from Bolivia to Gas Company.
Brazil increased from 23 million dollars in 1999 to over 750
million dollars in 2005. On the reciprocal side, Brazil’s In 1973, the Government struggled how to best serve Quetta
economic presence in Bolivia represents 20% of Bolivia’s City with a modern convenient gaseous fuel. The Pakistani
gross domestic product. Given the tumultuous relationship governmenrt evaluated the following alternatives:
between the two neighbors, the risk of a natural gas cut-off o Use natural gas and construct a natural gas pipeline
by political decision or sabotage has never been too far
 o Provide LPG in cylinders After arrival of natural gas at some future date, the SNG
system reverts back to a peak shaver function as depicted in
o Construct a coal gasification system and piped grid
Figure 6. Two excellent examples of countries that
system
employed this technique on a large scale are China and So.
o Construct an SNG system and piped grid system Korea.
that would allow conversion to NG in the future
The last alternative was selected. Performance of the
system was very good and three decades later when Sui
Southern Gas Company (SSGC) faced a similar challenge
SNG was again selected.
In late 2005 Southern Sui Gas Company began construction of
an SNG system in the city of Gwadar, a port city also located
in Baluchistan near the border of Iran. Baluchistan,
incidentally, is the largest province in Pakistan with a
population of only around one million. The port of Gwadar
is being developed under the state government for trade with
Afghanistan, China and other Central Asian states.
Photo 3 shows the SNG system installed at the Gwadar
facility. It was commissioned in early Janaury 2006 with
President General Musharreff in attendance. Various other Figure 6: Illustrates the use of the SNG system
cities in Pakistan are targeted to be supplied SNG in 2006- reverting to a Peak Shaving function after NG arrives in
2007. a region

SNG : A Technical Overview…

Figure 7 depicts a typical flow process for an SNG system.
Liquid LPG is stored in tanks under pressure. The amount of
storage required is determined based on the output capacity
of the proposed facility, the projected hourly usage, the
logistical ability to replenish the LPG, and so forth. When
the SNG system is in operation, LPG is transferred from the
tanks via a pump to an LPG vaporizer. As the LPG liquid

Photo 3: SNG Blending system installed at Gwadar,

Pakistan (Photo courtesy of SSGC, Pakistan)
The concept used by SSGC in both these applications is a
concept well proven. SNG is distributed from a local
CityGas facility as the primary fuel prior to the the arrival of
natural gas as illustrated in Figure 5.

Figure 7: Typical flow schematic for an SNG system

passes through the vaporizer, it is heated to the vapor phase.

The vaporizer also provides adequate super-heat to prevent
re-condensation.
The super-heated LPG vapor is then blended with air
supplied from an air compressor to a specific ratio creating
the SNG. This mixing occurs in a proportional blending

Figure 5: Illustrates the use of SNG for CityGas

distribution prior to the arrival of NG to a region
system as illustrated in Figure 8. The system’s flow control
system then allows injection of the SNG into the gas
distribution grid as required.

Figure 10: Peak shaving using pressure control

also allows the SNG flow to vary as necessary, in a fixed

ratio, as the natural gas demand varies.
Figure 8: Typical LPG + Air mixer used to create SNG An alternate method of peak shaving control is Pressure
Control. When peak shaving in Pressure Control, the
amount of SNG replacement of NG can vary from minimal
SNG for peak shaving is typically injected into the natural- to 100%. The role of the SNG is simply to maintain line
gas grid to replace up to about 25 to 40% of the total gas pressure and flow in the NG pipeline — regardless of
flow. The “right” mixture quality (BTU/Ft3) for a peak SNG/NG ratio! During operation, a pressure transmitter
shaving site involves several factors, including the provides a flow control bias that will reduce the SNG flow
composition of the natural-gas and LPG streams and the rate as the natural gas pressure in the pipeline approaches
interchangeability criteria to be met. some fixed pressure setpoint. If the natural gas system
When peak shaving, there are two common control pressure rises above that set value, the flow control valve
methods: Ratio Control Figure 9 or Pressure Control closes and SNG injection will stop. When the line pressure
Figures 10. drops, the flow process will begin again.
Both systems have various safeties that ensure safe
operation. These will be discussed in a following section.
Design and Construction
The design and construction activities associated with
an SNG peak shaving facility can be sub-divided into
discrete activity blocks. These include:
1. Economic feasibility confirmation
2. Site selection
3. System design and specification
4. Site permit / Fire Safety Analysis completion
5. Manufactured Equipment ordered
• Liquid LPG unloading facility
• Liquid LPG storage facility
Figure 9: Peak shaving using ratio control • Liquid LPG transfer systems (storage to
vaporizer)
In Ratio Control, a pressure and temperature corrected flow • Liquid LPG vaporization system
signal from a meter in the natural gas line upstream of the • SNG mixing system (i.e. LPG and Air
SNG tie-in is required. A similar flow signal is required blending)
from an SNG meter. These signals allow a Flow Control • SNG flow Control System
Valve installed after the blender to regulate a volumetric • Control philosophy and hardware
ratio up to ~40% of SNG to natural gas in the pipeline. This 6. Field preparatory work ( as necessary)
ratio ensures the overall specific gravity of the SNG/NG 7. Field concrete / foundations
will remain below 1.00 (lighter than air). The control system
 8. Tanks and manufactured equipment set PTO driven pump mounted on the transport. A level
9. Field interconnecting piping completed unloading area is required to ensure effective transfer of the
10. Field interconnecting electrical completed liquid LPG from the transport to the storage facility.
11. Field “tie-in” to Natural Gas Grid completed
LPG is transferred using a TTU or Truck Transport
12. Site security and landscaping
Unloading station. The TTU has two hose connections; one
13. Commissioning / Training / Hand-over to Client
is a vapor line connection piped to the vapor connection of
the storage tanks. The second connection is the liquid
Construction Times/Costs transfer connection, which is piped to the liquid connection
The amount of time required to design and construct a peak on the storage tanks. During the transfer process, high
shaving facility depends on the complexity and size of the pressure hoses connect the transport to the storage tanks
system. Four to eight months are reasonable construction creating a circuit. As liquid is transferred from the transport
estimates. These estimates include the design, to the storage tanks, vapor is displaced from the storage
manufacturing, field erection and commissioning activities. tanks to the transport.
Costs also vary dramatically depending on system capacity After completion of the liquid transfer, from the transport,
and sophistication. As LPG storage requirements increase the unloading process is complete. The vapor remaining in
— costs increase significantly. Estimates from $400,000 to the transport can constitute up to ~3% of the load. However,
$7+ million USD are reasonable. Storage capacities, soil recovery of the vapor phase requires use of an LPG
conditions and amount of field piping have the most direct transfer/recovery compressor.
impact on costs.
Rail Delivery
Modular “plug and play” pre-packaged, wired and piped
Rail tanker deliveries require different equipment than road
(see Photo 4) systems constructed inside ISO containers are
tankers. Rail tank cars generally are not “bottom drop” like
common. These modules reduce construction and
LPG delivery trucks. Rather — the LPG is off loaded via
commissioning time and costs.
connections on the top of the rail car. To accomplish this,
rail unloading facilities must have a railroad unloading
tower and unloading transfer compressor. A stationary LPG
transfer compressor is used to “push” the liquid LPG out of
the rail car. This is accomplished by drawing vapor from the
(“empty”) storage tank(s), compressing the vapor to a
slightly higher pressure while adding some heat from
compression, and then pushing the compressed vapor into
the rail car. This vapor volumetrically displaces the liquid
LPG in the rail tanker, forcing the liquid to transfer out of
the rail car to the storage tanks.
After most of the liquid has been removed from the rail
Photo 4: Modular SNG Blending System (Photo tanker, the process is reversed enabling the vapor in the rail
courtesy of Ely Energy) car to be recovered and transferred to the storage tanks as
well. To accomplish this, the compressor flow path is
SNG System Sizing reversed using a 4-way valve arrangement. Vapor is sucked
Proper sizing of equipment requires the following from the rail car and discharges to the storage tanks via the
information be provided by the client: liquid line connection.

• Maximum hourly SNG capacity output for the LPG Storage System
system Sizing of the liquid LPG storage facility depends upon the
• Heating value of the Natural Gas (to allow Wobbe demands on the process and the availability of LPG supply.
matching) An analysis of the projected use can define the minimum
• SNG discharge pressure required appropriate storage required.
• Site information (e.g. site plan of area to allow
equipment layout design) Example: An SNG facility has a projected usage operating
24 hours per day, at an average of 300 million BTU/hr for
LPG Delivery Facilities up to 3 consecutive days. The LPG this requires at peak
flow will be approximately 3,300 gallons per hour. A 60,000
LPG delivery via truck transport is the most common gallon storage tank will provide a 16-hour supply. (A 60,000
method of product delivery. Transport capacities range from gallon storage tank can only be filled to ~88% capacity at
9,000 to 11,500 (water) gallons and typically unload via a
60°F.) For three days (24h x 3 = 72h), 72/16 = 4.5 or a The blender will use the Wobbe Index signal to adjust the
requirement for five (5) 60,000 gallon tanks. mixing ratio to the desired gross WI value. Typical
correlation is +/- 1.5% of setpoint. The Wobbe Index meter
Although LPG storage tanks can be installed underground,
also alarms any High or Low Wobbe value that might be
costs are high relative to above ground tanks. Underground
measured.
tanks can have additional requirements including protective
coatings, ballasts, special types of pumping scenarios, top Modern SNG blenders
penetrations versus bottom and so forth. monitor the following
conditions. If one of these
LPG Pumps process characteristics is
LPG is delivered to the SNG mixing system at a pressure out of normal range, the
elevated above equilibrium pressure. Vapor pressure in the blender will alarm and
tank is dependent upon the “percent full” and ambient shutdown as necessary.
temperature of the LPG. As the LPG temperature drops
• Low LPG Supply
and/or the storage tank level drops as with use, the vapor
Pressure
pressure in the tank will also drop. Hence, liquid pumps
• Low LPG Supply
ensure sufficient LPG flow and pressure are available at the
Temperature
SNG mixing systems. LPG pumps are rotary pumps,
• Low Air Supply
generally either positive displacement or turbine type.
Pressure
Vaporizers • Flow Control
System (Faults if
Vaporizers convert liquid LPG to vapor by adding heat. For
the flow ratio of
a utility application, the vaporizer is typically a gas-fired
two gas streams is
water-bath. The vaporizers (see photo 5) use either an
incorrect)
atmospheric or forced draft power burner system to heat a
• Air Flow Control
solution of ethylene-glycol and water. The ratio of water to
Valve — (Faults
ethylene-glycol for freeze protection is established based on
local temperatures. The waterbath indirectly heats the LPG
if the actual Air Photo 6: Wobbe Index
via the LPG heat exchanger. Waterbath capacities are
Control valve Meter for monitoring of
available up to 15,000 gallon/h in one unit.
position differs by SNG quality
more than 2% of
the required
theoretical position)
• Low Wobbe Index
• High Wobbe Index

The SNG Blender has the capability of operating in two

different modes of operation as we previously discussed for
peak shaving. It can operate in Ratio Mode, wherein a fixed
ratio of the natural gas flow is displaced by SNG.
Alternatively, the blender can operate in so called Pressure
Mode, wherein all natural gas is displaced (or made up
by…) by SNG.
Photo 5: Typical Large Waterbath Vaporizer (Photo When in Pressure Mode, the Blender typically operates at 1”
courtesy of Aprogas, Peru) to 3” of water column pressure higher than the regulated
natural gas. This configuration requires a check valve be
LPG-Air Blending = SNG installed in the Natural Gas piping up stream of the SNG
injection point. When SNG is being injected at the slightly
The typical SNG blender provides discharge pressures from
higher pressure, it will automatically close this check valve
15 – 70 PSIG but 100 to 250 PSIG are available. Modern
shutting off the Natural Gas supply. SNG now supplies all
blenders operate on molar (volumetric) relationships. The
the gas into the pipeline. If the blender were to shutdown,
percentage of gaseous LPG and compressed air are then
the gas distribution system pressure will fall allowing the
blended to maintain a specific SNG mixture. An optional
Wobbe Index meter (see photo 6) monitors the SNG gas
quality and determines its interchangeability with the natural
gas.
natural gas check valve to re-open and Natural Gas to flow Conclusion
back into the facility.
Natural gas interchangeability strategies can be a tangible
When in Ratio Mode, a Flow Control Valve is required on investment in both security and flexibility of a gas supply.
the discharge of the Blender. The blender will operate The natural gas markets of today are not the same as a few
similar to the Pressure Mode we described above with the decades back. Our growing reliance on natural gas-fired
SNG discharge pressure 1” to 3” of water column higher power generation has added a new dynamic to the market.
than the regulated Natural Gas pressure at the point of Price variability and seasonal volatility demand the ability
injection. The SNG Flow Control Valve will control the to strategically manage shortages of supply as well as
SNG injection rate using a dedicated PID Process Controller pricing issues. Using LPG/air (i.e. SNG) to simulate and
that monitors the ratio of the corrected Natural Gas and replace natural gas can be a good option.
SNG volumetric flows. The natural gas flow signal will be
provided from a meter installed upstream of the SNG tie-in. Applications can involve not only peak shaving during high
The blender creates a corrected flow signal for controlling demand periods but can also include off-grid market
the SNG through normal programming. The Flow Control development (e.g. Pakistan with SNG preceding NG) as
Valve controller will only allow a volumetric ratio up to well as industrial back-up systems in mature gas markets.
40% SNG to Natural Gas. This ensures that the overall For large scale supply supplementation projects, LNG will
specific gravity will remain below 1.00 (lighter than air), retain the upper hand in terms of application. But LNG is
The control system also allows for the SNG volume to not the perfect cure for all scenarios. LNG is also slow and
adjust as necessary, in a fixed ratio, as the Natural Gas Flow expensive to implement. For many small local markets as
demand changes. well as some regional CityGas opportunities, LPG holds
advantages. SNG can be used to supplement natural gas via
Peak Shaver Controls
peak shaving, base-load and back-up fuel applications. SNG
Advances in controls technology allows peak shaving can provide an identical or nearly identical Wobbe Index,
operations to be extremely flexible, user friendly and safe at produce an equivalent amount of energy and require the
affordable prices. Generally a centralized control station is same amount of combustion air as natural gas. Burners
either a traditional relay based system or more commonly operating on SNG require no pressure adjustments and the
handled via a PLC utilizing either an Ethernet or Data measured and observed combustion characteristics show
Highway design. Either way, today’s controls allow essentially complete acceptance.
integration of the entire process — from the bulk storage
tanks thru to the gas/air mixing and gas quality Acknowledgements
measurement and control functions. System design should I extend thanks to Dr. Jozsef Steier (Budapest) for his notes
focus on achieving a coherent operating strategy that and discussion and to SSGC (Pakistan) for their
ensures a safe, simple and reliable process. contributions to this paper.
Security Protection
References
Standard security at an LPG facility should include Jeff Share, Reliability Means Key to Success for Gas
perimeter fencing and other devices as necessary to keep Marketers (Pipeline & Gas Journal, June, 2006)
unauthorized personnel out of the facility. The facility
should be restricted to only authorized and trained Gary D. Eaton, Peak Shaving with Synthetic Natural Gas,
personnel. (Ely Energy 2005)
Training and Technical Documentation
Mulk Dabir Ul, Liquefied Petroleum Gas Air Mix Plant at
System operators must understand the basic properties and Quetta, Pakistan 1976
associated hazards of LPG. It is important that the
differences between natural gas and LPG be understood. Rossbach, EO and Hyman, SI, Interchangeability: What it
As safety is the ultimate key to success, training and safety means, AGA Catalog No. XH0202, 1978 (Reprinted
measures are fully integrated into the overall SNG Peak February 2002)
shaver proposal.
Jozsef Steier, Hungary’s Fuel Situation (oral and personal
Feasibility Analysis notes), 2006
Consideration of a peak shaving system requires a
feasibility analysis. A practical approach based on Gas Consumption data, Hydrocarbon Development Institute
knowledge of both natural gas pricing options and SNG of Pakistan, 2006
technologies is critical.
Elliot H. Goe, The Great Gas Shortage, The Energy Letter,
January 20, 2006