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LIQUEFIED NATURAL GAS (LNG) BY Team supercooLNG Dhari Alotaibi Andrew Arambel Bhagya Gunatilleke Chris Robinson Sarah Scott.

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Presentation on theme: "LIQUEFIED NATURAL GAS (LNG) BY Team supercooLNG Dhari Alotaibi Andrew Arambel Bhagya Gunatilleke Chris Robinson Sarah Scott."— Presentation transcript:

1 LIQUEFIED NATURAL GAS (LNG) BY Team supercooLNG Dhari Alotaibi Andrew Arambel Bhagya Gunatilleke Chris Robinson Sarah Scott

2 Business Opportunity There is an excess of natural gas to be exported Large scale offshore plant located in the Gulf of Mexico Byproducts are ethane, propane, and butane

3 Plant Information Pipeline natural gas feed Feed contains 77 mol% methane Plant capacity: 531 MMSCF/day of natural gas Product capacity: 21.8 MMlb/day of LNG Operation: 344 operating days (8256 hr/year)

4 Overall Process

5 Pretreatment No dehydration unit Purchased commercially Offshore sulfur treatment unit

6 De-Methanizer Important characteristics: No condenser on de- methanizer since distillate is -120 F Liquid feed enters in top tray and acts as reflux stream

7 Important characteristics: Adiabatic expansion always for temperatures to reach -245 F without cooling. Heat integration minimizes the need for refrigeration. Nitrogen Rejection Unit

8 Important characteristics: Multiple compressors reduces required work in the system. Refrigeration

9 Important characteristics: Multiple heat exchangers will be incorporated into a cold box design

10 Fractionation

11 Economic Analysis 20 year plant life All costs of feed or product streams were analyzed using flow units of SCF/day or 1000 SCF/day (MSCF/D) MACRS 5 depreciation

12 Capital Costs Total fixed capital investment of plant: 2.83 MMM$ (85% of the total capital investment) o ISBL: 2.57 MMM$ o OSBL: 0.257 MMM$ Working capital: 0.499 MMM$ (15% of the total capital investment)

13 Revenue and Expenses Total cost of feed: 0.674 MMM$/yr Total revenue from LNG: 2.067 MMM$/yr Total revenue from byproducts: 0.143 MMM$/yr Total variable and fixed costs: 0.340 MMM$/yr Profit: 1.20 MMM$/yr

14 NPV Results NPV0: 13.53 MMM$ NPV10: 3.69 MMM$ IRR: 21.7% Payback period: approximately 5.5 years

15 Sensitivity Analysis Profitable for all four cases Case 3 very close to MARR

16 Environmental Impact Wastewater will not be produced during operation Greenhouse gas emissions are low in comparison to a typical natural gas processing plant LNG is less hazardous to the environment where processing and transportation are concerned LNG is a less attractive alternative to natural gas where energy consumption is concerned

17 Safety LNG industry has strict requirements determined by federal and international agencies LNG as a product is much safer than natural gas in the gas phase Not an explosive substance by nature Not stored under pressure Tankers are designed to a high standard of safety General HAZOPS study for our plant was performed

18 Conclusion LNG product sold to the European market Process byproducts sold to the United States market Total Capital Investment: 3.33 MMM$ Profit: 1.20 MMM$/yr Payback Period: 5.5 years LNG is an efficient, economical, and safe way to process and sell natural gas

19 Thank you to our group mentors John Myers, David Bell, and Joseph Holles.

20

21 Plate-Fin Heat Exchanger Cold Box


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