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I was a speaker in LNG World summit held in Doha recently (Nov-2011) & my topic was Global trends and perspective on LNG Development. Pls. find copy of presentation for your info.
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DESIGN SERVICE DELIVERINNOVATE
WELCOMES ALL PARTICIPANTS TO
LNG WORLD SUMMIT 2011
TU
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GLOBAL TRENDS &PERSPECTIVE ON LNG
DEVELOPMENT
OVERVIEW ON GLOBAL TRENDS &PERSPECTIVE ON LNG DEVELOPMENT
Introduction of Self Historical Perspective on LNG Expected trend predicted earlier & current scenario Current Projects Current LNG Market trade & prices Emerging Industry trends LNG Plants & LNG Terminal Shale Gas trend & perspective GTL trend & perspective CBM trend & perspective FLNG trend & perspective FCNG trend & perspective FGTL trend & perspective
Global trends & perspective on LNG-ConclusionAbout Antares Oil & Gas
SPEAKER
BACKGROUND
* OVERALL 24 YEARS EXPERIENCE IN PROCESS DESIGN, CONSULTANCY,PACKAGE & MACHINERY AND PROJECT MANAGEMENT FOR EPC.
* MASTER’S DEGREE IN ENGG + INTER. BUSINESS MGMT
+ CERT. INDEPENDENT DIRECTORSHIP FROM WCCG UK
* RESPONSIBLE FOR PROVIDING ENGINEERING SUPPORT TO VARIOUS
PROJECTS IN OIL & GAS, PETROCHEMICAL & POWER INDUSTRY
COVERING CONCEPT STUDY, FEED, DETAILED ENGINEERING, TROUBLE
SHOOTING ETC. BUILDING CANADOIL ENGINEERING TEAM WORLDWIDE TO
CATER TO PROJECT REQUIREMENTS.
* EXECUTED AND HANDLED NUMBER OF PROJECTS MORE THAN 5 BILLION
USD IN OFFSHORE, REFINERY, POWER, OIL & GAS SECTOR.
* WORKED WITH WELL KNOWN MNC’S LIKE TECHNIP ABU DHABI,TECHNIP ITALY, TECHNIP FRANCE, TOSHIBA ENGINEERING
(TPK/MARUBENI) MALAYSIA & INDIA, BTS, PECTECH(RAPP)INDONESIA, UHDE GERMANY & INDIA.
* CHAIRPERSON FOR FLNG FORUM HELD IN CHINA IN MARCH – 2010PRESENTED PAPER ON INNOVATIVE IDEA ON MODULARIZATION;PRESENTED PAPER IN LONDON CONFERENCE ON CORP GOVERNANCE;PARTICIPATED IN DISCUSSION ON 360 DEGREE ASSESSMENT FOR FLNG;ADVISOR TO FLNG ASIA PACIFIC SUMMIT; CHAIRED PANEL
DISCUSSION ON RISK MITIGATION FOR LARGE EPC PROJECTS
Mukes Gupta
CEO-ANTARESOIL & GAS LLC
Ex-ManagingDirector CanadoilEngg India &
COO – CompleteEngg Abu Dhabi
PROFILE OF PROMOTOR OF ANTARES OIL & GAS LLC
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LONDON CONFERENCE
GLYCOL CONTACTOR GAS REGENERATION UNIT
OFFSHORE PLATFORM GAS SWEETENING
GAS DEHYDRATION
TEMPORARY FLARE PACKAGE QG OFFSHORE
HISTORICALPERSPECTIVE ON
LNG DEVELOPMENT
PRIMARY ENERGY PER CAPITA CONSUMPTION
PRIMARY ENERGY CONSUMPTION MTOE
EXPECTED TRENDSPREDICTED EARLIER &
CURRENT SCENARIO
LNG WORLD TREND BEFORE & AFTER
PROJECT OVERVIEW
LNG DEMAND OVERVIEW
PROJECT OVERVIEW
CURRENT LNG MARKETTRADE & PRICE
Estimate of LNG Cost Reductions
Source: McKinsey & Company / El Paso$/MMBtu—2,500 mile voyage
LiqueLique--factionfaction
TransTrans--portationportation
RegasRegas--ificationification
TotalTotal
3030%%declinedeclineof costsof costsintointopipelinepipeline
TotalTotalLiqueLique--factionfaction
TransTrans--portationportation
RegasRegas--ificationification
11..808011..5454 00..5050
00..4949
2.532.53
11..0000 00..4040
0.400.40
19701970’s vs. Today’s vs. Today
CURRENT LNG MARKET TRADE & PRICE
Till March – 2011 (Japan Earthquake & Nuclearpower plant shutdown) LNG was in oversupply Post Mar – 2011 rebound observed in flow of spot LNG Stronger spot demand in new markets like SouthAmerica & Middle East & Japan / Korea Producing countries which focused earlier on USAmarket are strategizing of securing new marketMore traders involvement with increased need toflexibility Global overall trade grew by 20% last year to 220Million Ton with 50% growth coming from Qatar &Balance from Russia, Indonesia, Yemen, Nigeria, Peru Recent Geopolitical development had impact in NorthAfrica (Egypt, Libya, Algeria etc)Major demand came from Asia (Korea, Japan, China,India), Europe (UK, Italy), South America, ME USA demand failed to materialize
CURRENT TRENDS IN LNG
LNG import terminals in USA planned to becomeexport terminal in future to sell the Shale Gas toother global customers Likewise the LNG export terminals of dwindlinggas fields like in Indonesia are planned to beconverted to import terminals (Exxon) Australia, China, Japan & Qatar influence the LNGmarket most and trend expected to continue Spot LNG in demand Floating Regasification coming in operation inArgentina, Brazil, Dubai, Kuwait, UK & USA LNG carriers may continue to see slowdown in neworders but expected to rise after 2013 as demand picks Lower level of investment expected to continue inshort term on new LNG facilities
EXPECTED MARKET TREND
Major growth demand wise likely to be in Asia
Australia expected to become major producersurpassing Qatar in next 5 years
With development of Shale Gas and slowdown ineconomy & additional capacity of LNG coming up theprice are likely to be in control
Geopolitical developments may impact the price &demand for spot LNG
EMERGING INDUSTRY TRENDS
>LNG PLANTS & LNG TERMINAL
>GTL TREND & PERSPECTIVE
>FLNG TREND & PERSPECTIVE
>FCNG TREND & PERSPECTIVE
>FGTL TREND & PERSPECTIVE
>SHALE GAS TREND & PERSPECTIVE
>CBM TREND & PERSPECTIVE
GAS TRANSPORTATION ARE 2 MAIN TYPES:
SHIPPINGPIPELINE
OTHER MEANS OF GAS TRANSPORTATION UNDER CONSIDERATION:GAS HYDRATES
GTLCNGDC POWER
TRANSPORTATION COST DIAGRAM
GAS TRANSPORTATION BY SHIPPING – IMPORTANT HIGHLIGHTS:
LNGC are cryogenic cargo tanks or bigthermos containers where the LNG ismaintained @ -160 C & atmospheric pressure &is constantly boiling.In LNGC, some gas is removed to preventpressure build up due to surrounding heat calledas boil off gas or BOG. This is either reused asfuel for ship propulsion or re-liquefied &returned to cargoLNG transporting is economic over longdistance (eg. Alaska to Japan or Australia toUSA or Japan, Qatar to UK / USA)Common size of LNGC has cargo space storageof 140,000 M3 (Cargo dead weight of 64,000 TonLNG).
GAS TRANSPORTATION BY SHIPPING – IMPORTANT HIGHLIGHTS:
The shipping cost represent @ 10 to 30% of thetotal costs in LNG value chainApprox 320 LNG Carriers are in service (outof total 1500 Liquefied Gas ships underoperation worldwide) – in comparison there are@ 12,000 Oil tankers of these approx 800 areVery Large Crude Carriers (VLCC’s) Approx 50 LNGC are on order underconstruction
GAS TRANSPORTATION BY SHIPPING – IMPORTANT HIGHLIGHTS:
Small size LNGC is down to 1,100 m3(500ton) and large LNGC are now built upto266,000 m3 (122,000 Ton Q-Max class) toreduce delivery cost.Typically LNGC are built for specificproject for long term upto 30 years to matchmarket contract.Very few LNGC available on spot marketDepending on the GSA these are eitherarranged by buyer or seller on FOB or CIFex-ship terms.LNG Shipping is usually arranged fromthird party owner under long term timecharter arrangement (charter parties)
CNG Transport
Courtesy Enersea
COMPRESSED NATURAL GAS (CNG)
Advantages
• Simplicity• Inexpensive onshore facilities• Can start with very modest transporting needs• Energy efficient• Can exploit isolated supply sources• Suitable for small demand markets
Example: A 1200 MW plant requiring around 125 MMscf/dwould be well suited for CNG import rather than LNG,which would require a generating capacity of 5000 MW (!) ofgas-fired generation (if all used for that purpose).
COMPRESSED NATURAL GAS (CNG) COMPRISES
Compressed gas (1500 to 2500 psi and 0 to - 40 F)
Two technologies for CNG transporta. The Cran & Stennings approach
b. The Enersea approach
Example: Consider the transportation of 300MMscf of gas as CNG
Using the Cran & Stennings approach
Actual volume of CNG: 1.76x106 ft3
Using the Enersea approach
Actual Volume of CNG: 1.2x106 ft3
CNG CARGO CONTAINMENT SYSTEM
Courtesy Enersea
FOR TRANSPORTATION OF THE CNG
90% of the investment involved is in shipping of thegas.
Loading and unloading is possible and easy with smallfacilities.
ESTIMATED NUMBER OF SHIPS
Factors for determining the number of ships: loading rateof the gas, distance for which the CNG is transported andthe time required for a ship to make one complete cycle.
Distance No. of ships
miles1000 4
1500 5
2000 62500 7
3500 8 to 95000 11 to 12
COST OF TRANSPORTATION
For voyage distance of 2500 miles
Cost of CNG transport: $1.86-$2.43/Mscf(depending on pressure and temperature)
Published Cost of LNG transport: $1.89/Mscf
As the distance decreases CNG becomes moreattractive than LNG
COMPARISON OF CNG AND LNG
Size of investment for a 500MMscf/d plant
CNG LNG
Reserves: Modest Large
Processing cost: MM$30-40 MM$750-2000*
Transportation costs: MM$230/ship MM$160/ship
Unloading costs: MM$16-20 MM$500-550
Total investment: $1-2 billion** $2-3 billion**
* Depending upon the location of the production site
** Depending upon the number of ships used for the transport of the gas.
TYPICAL COST COMPONENTS FOR LNGPROJECT
Liquefaction
50%
Shipping
39%
Unloading
11%
TYPICAL COST COMPONENTS FOR CNGPROJECT
Unloading
6%
Compression
and loading
5%
Shipping
89%
COMPARISON OF CNG AND LNG
Advantages of CNG over LNG
Requirement of lower throughput of gas for a project
Involvement of lower capital
Ease of deployment … faster implementation of a project
Ability to access stranded reserves and monetize them Majority of the investment is in the shipping, making the
assets movable and reducing the risk involved
Disadvantages
Inability to transport large volumes of gas such LNGDisparity in the volume transport hinders commercial
possibility of CNG
GAS TO LIQUIDS OR GTL
The Fischer-Tropsch synthesis (F-Tsynthesis) is one of the most importanttechnologies for GTL.
A main advantage of the F-T products isthe absence of sulphur, nitrogen andcomplex cyclic hydrocarbons resulting inalmost no emissions of sulfur dioxide,nitrous oxides and unburnedhydrocarbons.
For 100 barrels of liquids 1 MMscf of gasis needed
First GTL Project announced in USArecently
COMPARISON OF CNG AND GTL
GTL (Gas-to-liquids) technology convertsnatural gas into hydrocarbon liquids.
Impetus for the GTL technology: Cleanfuel obtained as product and easytransportation
Main products: Middle distillates likegasoline, kerosene, jet fuel,naphtha anddiesel
SHALE GAS
SHALE GAS - TYPICAL ARRANGEMENT
SHALE GAS
SHALE GAS
COAL BED METHANE GAS (CBM)
WHAT IS COAL BED METHANE?
Standard naturalgas: CH4
Methane forms alongwith coal
It is held in the cleatswith the coal
Substantial waterpressure needed tokeep methane in thecoal: 400 to 1000 ft ?
COAL BED METHANE GAS (CBM)
Relieve pressure torelease methane byremoving water
Domestic wellscompleted in seamsproduce methane due todrawdown caused bynearby pumping
6-7 times more naturalgas than in traditionalnatural gas fields
COAL BED METHANE IMPACT / ISSUES
• Groundwater depletionWater table drawdown
Decreased flow to springs and streams
• Groundwater Contamination
- Methane in the groundwater
- Seepage of disposed CBM water
• Surface Water
- Water quality: Excess Sodium or Salt
- Wasted water
- Changing channel shape
CONCLUSIONON LNG TRENDS &
PERSPECTIVE
FUTURE TRENDS IN LNG Regasification capacity rise expected New LNG buyers expected in Pakistan,Bangladesh, Thailand, Vietnam, Singapore,Phillipine, Indonesia, Malaysia etc Australia will become key player along with Qatar Shale Gas development in some of the Asian regionmay again alter the LNG demand scenario FLNG & FCNG likely to come up (Indonesia (Shell’sprelude), Brazil and ME are working on FLNG Recent development in Nuclear plant in Japan mayincrease the Future Gas demand as more Gas basedpower plant likely FSRU is another option likely to be considered Global economic slowdown and Geo politicaldevelopments may have contradictory pressure on gasprice
PROJECTION OF GROWTH DUE TO SHALE GAS INDUSTRY
STRUCTURE OF GAS INDUSTRY LIKELY TO CHANGE WITH PARTICIPANTS IN NEW AREA
LIKE SHALE GAS DRIVING THE MAJORITY OF GROWTH
FCNG & FLNG
FCNGFLOATING PIPE TOCARRY CNG
FLOATING POWER PLANT
COPY RIGHT 2010 ©…………. [email protected]
PROBABLE FUTURE SOLUTION ….MG’S IDEA MAR 2010!
WORLDWIDE AREAS OF INTEREST FOR
APPLICATION OF CNG TECHNOLOGY
ABOUTANTARES OIL & GAS
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CANADOIL COMPLETE ENGG
CUSTOMIZED COMPR. SYSTEM
FIORE
XIAMEN / LANDEE
KAVIN ENGG
MARBEL ENERGY
TMC
SWAMINA
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DAYANG PETRO
PROCESS ENGGINTERNATIONAL
GEOTECHNICAL GMBH
OSWAL VALVES
LIESIG SUPPORTS &FITTINGS
DRY DOCKS
ANTARES OIL & GAS PARTNERS / ASSOCIATES
* ANTARES IS NAME OF SUPER GIANT STAR IN OUR MILKY WAY GALAXY
* IT IS IN THE SCORPIO CONSTELLATION AND SIZE IS GREATER THEN THE
CIRCUMFERENCE OF PLANET MARS ORBIT! AT THIS SCALE, SIZE OF SUN IS
INSIGNIFICANT DOT IN COMPARISON AND EARTH CANNOT BE VISUALIZED!
•ANTARES IS CLOSE TO INDIAN WORD ANTARIKSH WHICH MEANS SPACE & ITIS ALSO NAME OF FAMOUS ARABIAN WARRIOR & POET ANTARA WHO LIVEDLIFE KING SIZE ON HIS TERM!•ANTARES NAME SHOWS US THE VASTNESS OF THE CREATION POSSIBLE INUNIVERSE AND SIGNIFIES US TO FORGET OUR EGO & WORK WITH A SINCEREAND NOBLE INTENTION DURING OUR TRANSIT THROUGH THIS WORLD IN THISHUMAN FORM!•THERE ARE TRILLION OF CREATURES IN UNIVERSE, TRILLIONS OF STARS INGALAXY AND SURPRISINGLY THERE ARE TRILLIONS OF CELLS WITH EACHCELL HAVING POWER OF REGENERATION. WE ARE PART OF SAME SUPREMEBEING OR GOD & PART OF SAME UNIVERSE WITH ALL ITS POWER AT OURDISPOSAL. LETS USE THIS POWER TO HELP OTHERS AND SAVE ENVIRONMENT.BEFORE HARMING ANYONE PLS THINK..........LIVE & LET LIVE BE OUR MOTTO.
ACKNOWLEDGEMENTS (PHOTOGRAPHS; ARTICLES & PRESENTATION….)
· ABS
· Shell
· FPC
· Technip
· FlexLNG
· QG
· ConocoPhillips
· Saipem
· DNV
· Aker
· Waller Marine
· EnerSea Votrans
· E & P (Brian)
· Asim Deshpande & Michael
Economides
· CE & CG Team (Bill / Milind) &
others
ANY QUESTIONS?