Presentation on

Natural Gas Value Chain

and
LNG-Technology and Business

Dr. Asheesh Srivastava

B.Tech., M.S. , Ph. D. ( B’ Admin)
Certified Energy Manager/Auditor
Authorized ASME Instructor
General Manager (Training), GTI Noida
Trends in world energy consumption
Trends in world energy consumption
Global Natural Gas Reserves
Global Natural Gas Reserves
World
25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
r
ssia Iran ata ates abia stan ates uela eria hina eria Iraq esia ique stan
Ru Q St i Ar eni mir nez Nig C Alg
d o n m b ak h
d E
ite aud rkm ab Ve I n o z a K az
Un S Tu Ar M
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U
Natural Gas yearly Consumption
Year 2020
Country Consumption (Billion
Cubic Meters)

United States 832

Russia 411

China 330

Iran 233

Canada 112

Saudi Arabia 112

Japan 104

Mexico 86

Germany 86

United Kingdom 72

United Arab Emirates 69

Italy 67

India 59
 What is LNG?

It is colorless, odorless and is a boiling liquid under

atmospheric pressure at a temperature of -160oC.

Composition = Around 90 % Methane and balance 10%

contains Ethane, Propane, Butane and Pentane.

LNG Volume is 1/600 of Natural Gas.

1 MMTPA LNG  1.23 MMTPA of Oil equivalent
 3.6 MMSCMD (Natural Gas)
 LNG as a safe fuel
Relationship between methane gas specific gravity
and temperature

20
0
-20
Lighter than air
-40
Relationship between Methane
evaporation -60
temperature

methane gas specific (oC) -80

-100
Heavier than air

gravity and
-113
-120
-140
temperature -160
0.400 0.600 0.800 1.000 1.200 1.400 1.600
Specific gravity (15.6 oC air =1)

LNG flammability limits

>15-100 % Over Rich –will Not burn

>5-15 % Flammable
0-5 % Too lean- will not burn
 NG Flammability Curve
Concentration (%vol. in air) 100%

.F.L.
U

15% Flammable Auto-ignition

mixture

5%
L.F.L
.
0%
25°C 537°C
Temperature
About Cryogenics

Cryogenics is the study of the production of

very low temperature (below −150 °C, −238 °F
or 123 K) and the behavior of materials at
those temperatures. The word cryogenics
stems from Greek and means "the production
of freezing cold"; however the term is used
today as a synonym for the low-temperature
state. It is not well-defined at what point on the
temperature scale refrigeration ends and
cryogenics begins, but most scientists assume
it starts at or below -240 0 F (about -150 0 C or
123 0 K). The field of cryogenics advanced
during World War II when scientists found that
metals frozen to low temperatures showed
more resistance to wear.
 
 History of LNG
The first commercial transport of LNG took place in February 1959. This was the transport on the LNG
carrier "Methane Pioneer" (capacity of 5000 m3) from Lake Charles in the USA to Canvey Island in
Great Britain. The "Methane Pioneer" was followed by the carriers "Methane Princess" and "Methane
Progress" (each of a capacity of 27400m3) which had their first passage in February 1962. It is necessary
to mention that the first carriers had a boil-off of 0-33%. Today’s carriers have a boil-off of 0-
15%."Methane Princess" "retired" in 1997 after 27 years of use, not due to the state of the carrier but due
to the fact that using such an old carrier is not cost-effective.
 LNG value chain

Gas Field Liquefaction Facility LNG Storage Tank LNG Tanker LNG Storage Tank Vaporizers To Pipeline

Producing Region Consuming Region

Algeria, Trinidad, Nigeria, Indonesia, Japan, S. Korea, Spain , USA, France,

Qatar, Oman, Malaysia, Libya, Taiwan, India , Turkey
Abu Dhabi, Brunei and Australia
LNG Value Chain
 Historical events
1. First Oil deposits were discovered in India in 1889 near Digboi in Assam.
2. The first well was completed in 1890.
3. The formation of Assam Oil Company was done in 1899.
4. In 1948, after India attained independence, the government of India realized the
importance of oil and gas for the growth of Indian industries, so it planned to develop
the hydrocarbon industry.
5. In 1955, under the Ministry of Natural Resources and Scientific Research, an Oil and
Natural Gas Directorate was set up to develop the oil and natural gas resources in the
country.
6. In 1956, Indian Parliament adopted the Industrial Policy Resolution and listed the oil
and gas industry amongst the Schedule 'A' industries. Oil and Natural Gas Directorate
was also upgraded to Oil and Natural Gas Commission.
7. After independence two major oil companies were formed ONGC in 1956 and OIL in
1959. ONGC post liberalization became central PSU in 1994.
8. Refining cum oil marketing companies IOCL , HPCL and BPCL were formed in
1959,1974 and 1976 respectively.
9. GAIL was formed as a gas marketing company in 1984 with the HVJ pipeline being the
first project.
 History of LNG
The first commercial transport of LNG took place in February 1959. This was the transport on the LNG
carrier "Methane Pioneer" (capacity of 5000 m3) from Lake Charles in the USA to Canvey Island in
Great Britain. The "Methane Pioneer" was followed by the carriers "Methane Princess" and "Methane
Progress" (each of a capacity of 27400m3) which had their first passage in February 1962. It is necessary
to mention that the first carriers had a boil-off of 0-33%. Today’s carriers have a boil-off of 0-
15%."Methane Princess" "retired" in 1997 after 27 years of use, not due to the state of the carrier but due
to the fact that using such an old carrier is not cost-effective.
 LNG value chain
 World Trade: Natural gas is liquefied and transported by ship from remote
reserves to markets in Asia, Europe and North America,
 Demand for LNG : Demand is increasing since 1980, making it one of the
fastest growing energy sectors.
 Seasonal Gas Storage: Roughly 100 LNG facilities, called peakshaving
facilities, have been constructed worldwide to liquefy and store natural
gas during warmer months for vaporization and injection into local
pipelines during cold weather.
 Alternative Motor Fuel to Diesel : With only one carbon and four
hydrogen atoms per molecule, methane is the cleanest burning fossil fuel
and being used as LNG as a substitute to liquid fuel.
 LNG value chain
Advantages:
• LNG takes up 600 times less space than regular natural gas at ambient
temperature and pressure, which makes it easier to transport and store
than natural gas.
• LNG can be transported over long distances via double-hulled LNG ships,
which are specially designed tankers that keep the LNG chilled during
transport.
• LNG can be stored above or below ground in specially designed
double walled storage tanks.
• LNG is replacing diesel in many heavy-duty trucks and buses and many
new gas-fueled locomotives as a lower emissions alternative.
 LNG value chain
Disadvantages:
• LNG operations are capital intensive. Upfront costs
are large for construction of liquefaction facilities,
purchasing specially designed LNG ships, and
building regasification facilities.
• Methane, a primary component of LNG, is
considered a greenhouse gas because it increases
carbon levels in the atmosphere when released.
LNG : Transportation Cost
 LNG : Properties
• The combustibility of the LNG depends upon the composition, which
is majorly methane.
• The lower flammability limit is 5% and upper flammability is 15%,
anything above is considered over rich.
• LNG achieves a higher reduction in volume than compressed natural
gas (CNG) so that the (volumetric) energy density of LNG is 2.4 times
greater than that of CNG or 60 percent that of diesel fuel.
Transnational Pipelines
Cross Country Pipeline
City Gas Distribution
City Gas Distribution
The Enron era
The Enron era
About Dabhol
The Dabhol Power Company (subsequently called RGPPL - Ratnagiri Gas and Power Private Limited and
now Konkan LNG Ltd. ) remotely located at the western coast of Maharashtra in Ratnagiri District)
promoted by Enron was a company formed in 1992 to manage and operate Dabhol Power Plant in
Maharashtra . The Dabhol plant was built through the combined effort of Enron , GE and Bechtel . GE
provided the generating turbines to Dabhol, Bechtel constructed the physical plant and Enron was
entrusted with managing the project through Enron International. From 1992 to 2001, the construction
and operation of the plant was mired in controversies.
The Maharashtra State Electricity Board (MSEB), the local state run utility, was required by contract to
continue to pay Enron plant maintenance charges, even if no power was purchased from the plant.
The MSEB determined that it could not afford to purchase the power (at Rs. 8 per unit kWh) charged
by Enron. From 1996 until Enron's bankruptcy in 2001 the company tried to revive the project.
 About the Enron/DPC Project

Type of plant : Combined Cycle Gas Turbine (CCGT)

Fuel : Distillate Oil (Phase I) and LNG (after Phase II)
Capacity : 695 MW (Phase I), additional 1320 MW (Phase II)
Location : Near Guhagar, Dist. Ratnagiri, about 170 Km South
of
Bombay.
Promoters : Subsidiaries of Enron Corporation, USA, General
Electric and Bechtel Inc. with equity holding of 80, 10
and 10 percent respectively.
Capital Cost : Phase I ‘ US $ 910 Million, (with equity of $
266
Million).
Sole Consumer :Maharashtra State Electricity Board (MSEB)
MOU signed on :20th June 1992.
PPA signed on : 8th December 1993.
Financial Closure :1st March 1995.
Expected Commissioning :End of 1997.
Contract Period : 20 Years.
LNG Terminal
LNG Terminal
LNG Terminal
The Enron era
LNG Terminal
LNG Terminal -Dabhol
 LNG JETTY

UNLOADING ARMS
GANGWAY

WALKWAY INSTALLED

FENDERS
UNDER TRESTLE SAFETY LADDER
LIGHTING
19.01.2009
Berthing of LNG Ship
 LNG TERMINAL DABHOL

Marine Non – Marine

Jetty & Break Channel & LNG Re- Gasification

Dredging
Berthing Water Tanks Facility
System 3 LNG Storage Tank of 160,000 M3 HP Re-gasification – 2.9 MMTPA
Jetty Trestle – 1.8 Km 2.3 Km Long Channel of 8 Km by 300 capacity Each LP Re-gasification – 2.1 MMTPA
Berthing System – 400 m m with turning circle of
700 m Diameter
 LNG PORT LAYOUT

TANK-300 TANK-400

NAVIGATIONAL BOUY
TANK-200