CNG Marine Transport

SPE Applied Technology

Workshop
John P. Dunlop

Rio de Janeiro
17 November 2004
Background
EnerSea Transport LLC
‰ Based in Houston, Texas
‰ Privately owned
‰ Experienced team of industry leaders
‰ World class partners & business relationships

NIPPON STEEL
CNG Transport Systems
CNG Gas Transport Solutions
Market Sector

Pipelines (local) Pipelines

LNG
CNG (regional)
CNG
LNG (global) Hydrates
Stranded
Distance to Market

Plataforma
Deltana
A World of Opportunities
for CNG Marine Transport
CNG – Proven Technology
Columbia Gas
‰ 1967-70
– Initial CNG ship service
‰ Since 1970’s
– CNG land transport
‰ Since 1980’s
– Public & commercial vehicles
CNG Vehicles - Worldwide
New Generation Marine CNG

EnerSea VOTRANSTM

Trans Canada GTM Knutsen PNG

CNG Transport Chain

Loading Terminals

CNG Carriers

Delivery Facilities

Gas Storage (if needed)

Gas Conditioning Prior to
CNG Transport

‰ Production separation
‰ Dehydration
‰ Compression

Courtesy APL
Offshore Loading Terminals

Courtesy APL

‰ Low cost, proven system

‰ Receive gas direct from supply source
¾ Subsea flowline
¾ Flexible riser
¾ Dual buoys (for continuous production)
Offshore Delivery Terminals

‰ Simple design and operation

9 Low cost market entry
‰ Similar to Loading Terminal
‰ Offshore delivery – safe and secure
Proven Terminal Equipment

‰ Proven with high reliability

‰ US Gulf & worldwide applications
‰ Permit approved by USCG/DOT

Courtesy APL
VOLANDSTM
Gas Storage Facility

‰ Receive gas from CNG ships

‰ For gas markets needing storage
‰ Same technology as marine CNG
‰ Land-based or barge mounted
VOTRANS Marine Gas Carriers
Major Design Considerations

‰ Gas Containment System Design

‰ System Operating Regime
‰ Gas Handling System Design

Ship Capacities:
200 – 1000+ MMscf
5 – 30+ MMscm
Gas Containment Design
Segregated Storage

Configuration: Large diameter pipe

Orientation: Vertical
Pipe diameter: 42-in
Tank Height: 36 m
Pipe Tank Module: 24 pipes
Material: High strength carbon steel
CNG Operating Regime
VOTRANS System Technology

‰ Volume Optimised (VOTRANS) System:

ƒ Cargo temperature: -30° C
ƒ Moderate pressure: 90 – 122 bar
ƒ Thin-walled steel tanks
ƒ Patented technology unique to EnerSea VOTRANS

‰ Alternative Ambient Temperature Systems:

ƒ High pressures: 200 – 245 bar
ƒ Very thick-walled steel tanks, coils and/or
composite materials
Volume Optimization Principles
VOTRANS’ Breakthrough

‰ Store gas at optimum temperature-pressure

– Increased storage efficiency
– Reduced containment steel and ship cost
– Reduced compression
Hi-pressure,
Ambient Storage
Z factor, compressibility

0.9

0.8

0.7
Lean Gas
0.6

0.5
-30o C
Rich Gas
0.4

0.3

0.2

0.1
Mass = P
0
Vol ZRT
0 500 1000 1500 2000 2500 3000
Pressure, psia
Volume Optimized Storage Efficiency

0.5
Low Temp
Med Press

VOTRANS

Weight of Low Temp

0.3
Gas Med Press

Weight of Amb. Temp VOTRANS

Steel High Press Amb. Temp
High Press

0.1

Rich Gas Lean Gas

CNG Gas Handling Systems
Two Different Approaches

‰ Liquid Displacement System:

ƒ Used in the Chilled Gas (VOTRANS) system
ƒ 99% volumetric efficiency
ƒ Patented technology

‰ Alternative Blowdown System:

ƒ Used in Ambient Temperature systems
ƒ Temperature drop must be managed
ƒ Scavenging compression required
ƒ 92 - 94% volumetric efficiency
ƒ Relatively lean gas only
VOTRANS Liquid Displacement Technology
Loading & Unloading

Gas Port

‰ Isobaric; isothermal loading & unloading

‰ Supports lower storage temperature
‰ Handles both lean and rich/associated gas

Liquid Port
General Arrangement
VOTRANS V800 CNG Carrier

Gas Volume: 700 – 800 mmscf Full load draft 10.1 m

Length, LOA: 306.0 m Lightship draft 7.5 m
Beam, B: 50.0 m Ship Speed 18 knots
CNG vs. LNG
Comparative Risk Assessment
LNG CNG

Liquefaction Compression &

Refrigeration
Loading Loading

Port Departure Buoy Departure

Transit Transit

Port Arrival Buoy Arrival

Discharging Discharging

Regasification Decompression

‰ Approval-in-Principle (Granted April 2003)

VOTRANS is deemed to have an equivalent order of
magnitude of risk as LNG, with a slight risk
management advantage since all risks are offshore
Reduce Reserves Threshold
Monetize Reserves

‰ Reduce Reservoir p10

Appraisal

Probability
‰ Accelerate development p50

‰ Highly Scalable
p90
‰ Capture Upside
0 3 6 Tcf
‰ Mitigate Risk
CNG
LNG

Enhanced Asset Management

------
Improved Risk-weighted NPVs
Reservoir & Market Risk
Capacity Design Dilemma

MMscfd
TOO LARGE 600
‰ Unused capacity
500 p10
‰ poor economics
Demand
TOO SMALL 400 ?
‰ Lost opportunities
300
Reserves

WRONG DECISION RESULTS: 200

?
p90
‰ Long, expensive appraisal programs 100
‰ High cost to capture future upside 0
Lower economic recovery of reserves

20
10
1
‰
Years
‰ Many fields remain stranded
Gas Resources Lost in the
Transport Process

50%

40%

30%

20%

10%

0%
CNG Pipeline LNG GTL

High efficiency: greater revenues and less environmental impact

CNG Marine Transport Solutions
Strengths & Advantages

‰ Ship Capacities: 5 – 30+ MMscm

‰ Medium Rates/Reserves
9 Up to 700 MMscf/d (20 MMscm/d)
‰ Medium Transit Distances
9 Up to 3000+ miles (5000 km)
‰ Scalable
9 Growing reserves base
9 Emerging markets; dynamic demands
‰ Re-deployable
‰ Deepwater Fields
‰ Associated Gas Solution
‰ Risk Management Tool
Summary and Conclusions

‰ CNG - an important new gas transport solution

9 Technology advancements have greatly improved
CNG economics & applicability
‰ Innovative deepwater solution
‰ High efficiency operations can be expected
‰ Approval in Principle granted (ABS)
‰ Fleet construction & operating plans developed
‰ VOTRANS is ready for project application