1. Natural Gas >> From the Source to the Home group 2

2. OUTLINE INTRODUCTIONSOURCESPROCESSING & TREATMENTTRANSPORTATIONLNGDISTRIBUTIONNATURAL GAS IN THE HOME

3. INTRODUCTION  Natural gas is an odourless, colourless, tasteless, nontoxic clean-burning fossil fuel  Natural gas consists primarily of methane (CH 4 )  Natural gas may also contain ethane, propane, butane, pentane and helium in smaller proportions  Natural gas may contain ethane, propane, butane, pentane and helium in some cases

4. SOURCES CONVENTIONAL SOURCES UNCONVENTIONAL SOURCES CONVENTIONAL SOURCES UNCONVENTIONAL SOURCES ASSOCIATED GAS Natural gas found in association with oil, either dissolved in the oil or as a cap of free gas above the oilC ASSOCIATED GAS Natural gas found in association with oil, either dissolved in the oil or as a cap of free gas above the oilC NON-ASSOCIATED GAS This is natural gas obtained from reservoirs that are not connected with any known source of liquid petroleum. i.e. The reservoirs contain gas and no oil NON-ASSOCIATED GAS This is natural gas obtained from reservoirs that are not connected with any known source of liquid petroleum. i.e. The reservoirs contain gas and no oil UNCONVENTIONAL SOURCES [Cont’d] SHALE GAS Shale gas is natural gas formed from being trapped within shale formations SHALE GAS Shale gas is natural gas formed from being trapped within shale formations COAL BED METHANE Coalbed methane (CBM), coalbed gas, or coal mine methane (CMM) is a form of natural gas extracted from coal beds COAL BED METHANE Coalbed methane (CBM), coalbed gas, or coal mine methane (CMM) is a form of natural gas extracted from coal beds TIGHT GAS Tight gas is unconventional natural gas which is difficult to access because of the nature of the rock and sand surrounding the deposit TIGHT GAS Tight gas is unconventional natural gas which is difficult to access because of the nature of the rock and sand surrounding the deposit METHANE HYDRATE Methane clathrate (CH 4 xH 2 O), also called methane hydrate is a solid clathrate compound in which a large amount of methane is trapped within a crystal structure of water, forming a solid similar to ice METHANE HYDRATE Methane clathrate (CH 4 xH 2 O), also called methane hydrate is a solid clathrate compound in which a large amount of methane is trapped within a crystal structure of water, forming a solid similar to ice

5. PROCESSING AND TREATMENT PROCESSING

6. PROCESSING AND TREATMENT PRE TREATMENT

7. TRANSPORTATION PIPELINES GAS GATHERING LOOP PIPELINES PROCESSING PLANT PIPELINES LNG GTL, etc MARKET PIPELINES HOMES

8. TRANSPORTATION PIPELINES Liquefied Natural Gas (LNG) Compressed Natural Gas (CNG) Gas To Solids (GTS) (Hydrates) Gas To Liquids (GTL)

9. TRANSPORTATION PIPELINES Suitable for relatively short distances Trans-National Pipelines Inter-state pipelines Intra-state pipelines Compressor stations at strategic points Metering stations PIPELINES Suitable for relatively short distances Trans-National Pipelines Inter-state pipelines Intra-state pipelines Compressor stations at strategic points Metering stations COMPRESSED NATURAL GAS Gas is dried, compressed to about 3000psi and chilled Dedicated ships carrying long, large diameter pipes in insulated cargo packages are used. Cheaper than LNG Transportation distances shorter than LNG’s COMPRESSED NATURAL GAS Gas is dried, compressed to about 3000psi and chilled Dedicated ships carrying long, large diameter pipes in insulated cargo packages are used. Cheaper than LNG Transportation distances shorter than LNG’s GAS TO SOLIDS [GTS] In experimental stage Gas converted to Hydrates(ice-like) by mixing with water at 80-100 bar and 2-10 o C Hydrate slurry is refrigerated to about -15 o C Transported by ships carrying insulated containers Regasified at destination To be cheaper than LNG GAS TO SOLIDS [GTS] In experimental stage Gas converted to Hydrates(ice-like) by mixing with water at 80-100 bar and 2-10 o C Hydrate slurry is refrigerated to about -15 o C Transported by ships carrying insulated containers Regasified at destination To be cheaper than LNG GAS TO LIQUID [GTL] Gas is converted chemically to liquids such as syncrude, methanol, ammonia etc Transportation by thermally insulated seagoing vessels Liquid is used as fuel at endpoints NOT regasified GAS TO LIQUID [GTL] Gas is converted chemically to liquids such as syncrude, methanol, ammonia etc Transportation by thermally insulated seagoing vessels Liquid is used as fuel at endpoints NOT regasified

10. LNG  LNG is predominantly methane (CH 4 ) that has been converted to liquid form for ease of storage or transport.  LNG takes 1/600th the volume of natural gas in the gaseous state.  It is odorless, colorless, non-toxic and non-corrosive.  LNG Hazard include flammability, freezing and asphyxia.  It is odorless, colorless, non-toxic and non-corrosive.  LNG Hazard include flammability, freezing and asphyxia.

11. LNG – FACTS & PRODUCTION  LNG is used for transporting natural gas to markets, where it is regasified and distributed as pipeline natural gas.  The energy density of LNG is 2.4 times greater than that of Compressed Natural Gas (CNG).  It is a major source of foreign exchange globally for oil and gas producing nations.  LNG is used for transporting natural gas to markets, where it is regasified and distributed as pipeline natural gas.  The energy density of LNG is 2.4 times greater than that of Compressed Natural Gas (CNG).  It is a major source of foreign exchange globally for oil and gas producing nations. SCIENTIFIC PRINCIPLE FOR LNG PRODUCTION

12. LNG – PRODUCTION CONT’D The cooling curves of Natural Gas and Refrigerant are matched as closely as possible

13. LNG – PROCESS PLANT - COMPONENTS  Compressors: It is used to circulate the refrigerant.  The Compressor Drivers  Heat Exchangers Plate Fin Heat Exchangers Spiral Worn Heat Exchangers  Refrigerant Single Refrigerant e.g methane, ethane and Propane Mixed Refrigerant e.g propane, ethylene and methane used in Phillips Optimized Cascade Process  Compressors: It is used to circulate the refrigerant.  The Compressor Drivers  Heat Exchangers Plate Fin Heat Exchangers Spiral Worn Heat Exchangers  Refrigerant Single Refrigerant e.g methane, ethane and Propane Mixed Refrigerant e.g propane, ethylene and methane used in Phillips Optimized Cascade Process

14. LNG – LIQUEFACTION TECHNOLOGY  Most LNG Technology was developed and patented by major oil and gas companies. They Include: Phillips Optimised Cascade process (3 MTPA) APCI Propane pre-cooled mixed refrigerant process (5 MTPA) Black and Veatch PRICO process (1.3 MTPA) Stat Oil/ Linde Mixed cascade process (4 MTPA) Axeus Liquefied Process (6 MTPA) Shell double mixed refrigerant process (4.8 MTPA) Mixed Fluid Cascade Process (8 MTPA) Mustang Engineering Smart Liquefaction Process  Most LNG Technology was developed and patented by major oil and gas companies. They Include: Phillips Optimised Cascade process (3 MTPA) APCI Propane pre-cooled mixed refrigerant process (5 MTPA) Black and Veatch PRICO process (1.3 MTPA) Stat Oil/ Linde Mixed cascade process (4 MTPA) Axeus Liquefied Process (6 MTPA) Shell double mixed refrigerant process (4.8 MTPA) Mixed Fluid Cascade Process (8 MTPA) Mustang Engineering Smart Liquefaction Process

15. LNG – BASIC PROCESS PLANT

16. LNG – TRANSPORT & STORAGE  LNG can be transported via Specially designed ships with double hulls compartment Tanker Truck Railway Truck It can also be transferred from a ship to another.  LNG is stored at a temperature of −162 °C and 1 atmosphere  LNG Storage Tanks must have be; Full Containment Type Have a pre-stressed concrete outer wall A high nickel steel inner tank Efficient Insulation between tank walls  LNG can be transported via Specially designed ships with double hulls compartment Tanker Truck Railway Truck It can also be transferred from a ship to another.  LNG is stored at a temperature of −162 °C and 1 atmosphere  LNG Storage Tanks must have be; Full Containment Type Have a pre-stressed concrete outer wall A high nickel steel inner tank Efficient Insulation between tank walls

17. LNG – NIGERIA  Nigeria has 187tcf of gas reserve.  Nigeria currently produces 10% of the world's LNG consumption at 22MTPA.  NLNG currently produce and transport LNG in Nigeria.  Nigeria LNG Limited operates 6 LNG trains with combined capacity of 22 MTPA..  Trains 1, 2 and 3 have production capacities of 3.2 MTPA, whilst trains 4, 5 and 6 have capacities of 4.1 MTPA each.  Planned Train 7 would have a capacity of 8.4 MTPA, but final investment decision is yet to be concluded.  Nigeria has 187tcf of gas reserve.  Nigeria currently produces 10% of the world's LNG consumption at 22MTPA.  NLNG currently produce and transport LNG in Nigeria.  Nigeria LNG Limited operates 6 LNG trains with combined capacity of 22 MTPA..  Trains 1, 2 and 3 have production capacities of 3.2 MTPA, whilst trains 4, 5 and 6 have capacities of 4.1 MTPA each.  Planned Train 7 would have a capacity of 8.4 MTPA, but final investment decision is yet to be concluded.

18. DISTRIBUTION  Domestic users receive natural gas from their local gas utility. The natural gas is periodically compressed to ensure pipeline flow, natural gas travelling through the distribution network requires as little as 3 psi of pressurization and is as low as ¼ psi at the customer’s meter.  Distribution is the final step in delivering natural gas to customers. It involves moving smaller volumes of gas at much lower pressures over shorter distances to a great number of individual users  The natural gas to be distributed is typically depressurized at or near the citygate, as well as scrubbed and filtered to ensure low moisture and particulate content  mercaptan is added to the gas by the utility prior to distribution to enable easy detection of leaks. DISTRIBUTION COMPRESSOR STATION

19. NATURAL GAS IN THE HOME

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