1. Transport of Light
Gases Blended with LNG

2. LNG Transport Industry Summary

3. LNG Production Worldwide

4. LNG supply by year: 2005 to 2013

5. Supply by country: 2013 YOY

6. Markets: 2013 YOY

7. Shipping LNG: Supply & Demand
LNG Tankers – Plentiful, Many Sizes
LNG Sources – Growing Number
LNG Receiving – Slowly Growing Number
Limited Excess Capacity
Oversupply in 2008 has virtually disappeared
Lower gas cost has seen increase in LNG transport by about 40% since 2008
US Gas Supply Increasing Promising Substantial LNG Exports within a decade

8. Growing Industry & Transport Capacity
226 ships built through 2006
163 ships built in 2007 through 2013
46 ships planned for delivery in 2014 or later

9. LNG Value Chain

10. Cost of Transporting LNG
Transport of Natural Gas costs about $3.50/MSCF using LNG from source to destination (5000 km)
Natural Gas sells for about $4 to $16/MSCF ($200 to $800/tonne)
Natural Gas can be bought for $1 to $4/MSCF
Profit highest transporting to Far East from Middle East

11. Established LNG Sea Links

12. Qatar Gas -Major LNG Source

13. LNG Transport Equipment

14. LNG Storage

15. LNG Terminals

16. LNG Terminals

17. The LNG Transport Cycle

18. Blended LNG Transport of Valuable Gases:
Ethylene, Ethane, Propylene

19. Ethylene: Prime Raw Material for Chemicals
Traditionally made from Ethane and Naphtha Cracking
Ethane reserves are falling except in USA
Ethane Uneconomical for Shipping as Gas
Naphtha easily shipped to Manufacturers (has destination value)
All Major Future Ethylene Production Growth in Africa, Middle East and Far East

20. Ethylene Production

21. Chemical Production needs Raw Materials

22. Potential New Ethylene Technology
Synfuels GTE makes Ethylene from Low Cost Natural Gas Economically
GTE Ethylene market needs:
Local Chemical Industry
Mode of Transport to Traditional Market

23. Destination Value of Gases
Methane - $200 to $800/tonne
Ethylene - $1100 to $1600/tonne
Propylene – $1600 to $2000/tonne

24. Ethylene Transport Using LNG
Few Changes to Existing LNG Facilities are Needed
Chemicals made from Ethylene
Cryogenic Separation of Ethylene from LNG

25. Handling Ethylene/LNG Blend
LNG Gasification Facilities Gasify LNG and Deliver Natural gas to Pipelines
Ethylene/LNG Gasification Facility will Separate Ethylene from Methane
Deliver Natural Gas to Natural Gas Pipeline
Deliver Ethylene to Ethylene Pipeline

26. Liquifaction Equipment Additions are Minimal
Pipeline from Ethylene source to LNG Liquefaction Plant
Cross exchanger for Ethylene/LNG
Pumps to Move Blend to Storage Tank
Optional Separate Storage Tank for Cryogenic Blend

27. Gasification Equipment Additions are Minimal
Cryogenic Tower to Separate Ethylene from Natural Gas
Cold Box Condenser
Fin-Fan Air-heated Reboiler
Ethylene Pipeline Extension at Destination

28. Example Case - Load Value
Ship Size – 138,000 cu meters
58320 tonnes displacement*
100% Methane $ 35.0 Million
75 wt% Ethylene $ 63.4 Million
75 wt% Propylene $ 95.1 Million
All examples above for equal displacement shipping from USA to Japan
Cost to manufacture ethylene and propylene set at $350/tonne

29. Market Opportunity is Enormous
LNG shipping capacity – 60 Million cubic meters ( 25.4 Million Tonnes)
LNG annual transport – 562 Million cubic meters (237.7 Million Tonnes)
Worldwide Ethylene Production – million tons per year
(252 Million cubic meters)

30. Process Description

31. Process Description

32. Opportunity A (Add Synergy to Close Ethylene and LNG plants)
Bring ethylene by pipeline to site of existing LNG Liquefaction Plant
Cool and liquefy the ethylene with existing LNG refrigeration
Load the ethylene and LNG separately on a slightly modified LNG tanker
Unload the ethylene at the ethylene receiving site
Unload the LNG at the LNG receiving site

33. Opportunity B (Utilize far apart LNG and ethylene plants)
Load some LNG onto LNG Tanker from LNG production site
Move ship to distant ethylene production site and load refrigerated ethylene into separate LNG cooled storage
Unload the ethylene at the ethylene receiving site
Unload the LNG at the LNG receiving site

34. Opportunity C (Simplify Transport through Blending)
Bring ethylene by pipeline to site of existing LNG Liquifaction Plant
Cool and liquify the ethylene with existing LNG refrigeration
Blend the ethylene with LNG and ship in existing LNG tanker
Separate blend at receiving site

35. Potential GTE/LNG Sites
Co-Locations of Ethylene production and LNG Loading (Blue) and Receiving (Green)