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Group- 3

OUTLINE  What is LNG?  Is LNG a safe fuel?  The LNG value chain  How much does LNG cost?  Conclusion .

DEFINATION  When natural gas is cooled to a temperature of approximately -161 degree centigrade at atmospheric pressure . it condenses to liquefied natural gas (LNG) .


water vapor . .mercury etc. sulphur compounds. Liquefaction process for LNG requires natural gas free from impurities like carbon dioxide.

 A pipeline alternative would require crossing uninvolved third-party countries and the buyer is concerned about security of supply .  The market price in the importing country is sufficiently high to support the entire chain and provide a competitive return to the gas exporting company and host country.  The gas field contains at least 3 tcf to 5 tcf of recoverable gas  Gas production costs are less than $1/MMBtu.000 km from the field. A rule of thumb commonly followed states that LNG could be a viable option versus pipeline transport when the following characteristics are present:  The gas market is more than 2.  The gas contains minimal other impurities.NEED FOR LNG The decision to commercialize a gas field by either LNG or direct pipeline is related to the distance to market from the gas reservoir. delivered to the liquefaction plant.  The political situation in the country supports large-scale. long-term investments. such as CO2 or sulfur.  A marine port where a liquefaction plant could be built is relatively close to the field.

non toxic .PROPERTIES  It is clear . Flash point : -188 degree centigrade Auto ignition temperature : >540 degree centigrade . It is odorless. It is lighter than water( approx.non corrosive . half the density of water) Specific volume: 600 times that of natural gas in the gaseous state. Temperature range: (-) 160 to (-)168 degree centigrade.cryogenic liquid at       normal atmospheric pressure.

LNG Incidents 1944 Cleveland Ohio. 1973 Staten Island NY: LNG peakshaving plant.IS LNG A SAFE FUEL?  The industry is not without incidents but it has maintained an enviable safety record. especially over the last 40 years. LNG peakshaving plant. 40 maintenance workers dies 1979 Cove Point MD: LNG Receiving Terminal. 1 operator died . 128 people died in adjoining residential area.  The few safety related incidents have harmed the industry’s perception by those outside of the industry.  The experience of the LNG industry demonstrates that normal operating hazards are manageable.

 Exposure to LNG or direct contact with metal at cryogenic temperature can damage skin tissue more rapidly than exposed to vapor.  The metal not specifically designed for such ultra low temperature can develop brittle failure when such metals comes in contact with LNG.IS LNG SAFE FUEL ? Health hazards associated with LNG  Health hazards due to cryogenic temperature-LNG can result in cryogenic burns from direct contact with the body. .


Source: BG . Much of this natural gas is stranded. a long way from market. Production operations delivers the gas to users.LNG VALUE CHAIN Exploration and Production  Natural gas is found in the     earth’s crust. Worldwide proved reserves of natural gas about 6000 Tcf. Most of the time natural gas is discovered during the search for oil.

 The gas is cooled to LNG temperature of -256oF. The volume reduce by a factor of 600. Source: ALNG .LNG VALUE CHAIN Liquefaction  Natural gas is converted into a liquid state.  Liquefaction makes natural gas more economical to transport.

 LNG is a cryogenic liquid and it is stored in doublewalled tanks at atmospheric pressure. Source: BG Number of LNG ships built 1965 .  The LNG shipping market is expanding.Shipping LNG VALUE CHAIN  LNG tankers are double- Ships built each year hulled ships specially designed and insulated to prevent leakage or rupture in an accident.2002 14 12 10 8 6 4 2 0 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 Source: LNGOneWorld .

S.  Residential and commercial consumers receive natural gas for daily use from local gas utilities or in the form of electricity.  Vaporized gas is regulated for pressure and enters the U.  Vaporized by warming in a controlled environment. Source: CMS .LNG VALUE CHAIN Storage and Regasification  At the receiving terminal the LNG is pumped into a double-walled storage tank. natural gas pipeline system.

CMS .0/MMBtu $0.8-$1. ALNG.0/MMBtu $0.4-$1.3-$0.5/MMBtu Sources: BG.How Much Does LNG Cost? LNG Value Chain EXPLORATION & PRODUCTION LIQUEFACTION SHIPPING REGASIFICATION & STORAGE $0.20/MMBtu $0.5-$1.

industry and government to develop and communicate appropriate understandings of relative risks associated with LNG facilities and shipping.  It is important for citizens.CONCLUSION  LNG technology makes natural gas available throughout the world.  Demand for LNG is growing. .

Stanley Huang. Doug Elliot . 1st Ed. and Dr.REFERENCE  LNG an Indian scenario by BS Negi  LNG: Basics of Liquefied Natural Gas. Chen-Hwa Chiu. Dr. Written by Dr.