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.
5. PROFILE OF PROMOTOR OF ANTARES OIL & GAS LLC
* 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
Mukes Gupta * RESPONSIBLE FOR PROVIDING ENGINEERING SUPPORT TO VARIOUS
CEO-ANTARES PROJECTS IN OIL & GAS, PETROCHEMICAL & POWER INDUSTRY
OIL & GAS LLC COVERING CONCEPT STUDY, FEED, DETAILED ENGINEERING, TROUBLE
Ex-Managing
SHOOTING ETC. BUILDING CANADOIL ENGINEERING TEAM WORLDWIDE TO
Director Canadoil CATER TO PROJECT REQUIREMENTS.
Engg India &
COO – Complete * EXECUTED AND HANDLED NUMBER OF PROJECTS MORE THAN 5 BILLION
Engg Abu Dhabi 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 – 2010
PRESENTED 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
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TESTIMONIAL / FEEDBACK
PRESENTATION ANTARES-001 Rev. 0 25/08/2010
GLYCOL CONTACTOR GAS REGENERATION UNIT TEMPORARY FLARE PACKAGE QG OFFSHORE
GAS DEHYDRATION
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LONDON CONFERENCE OFFSHORE PLATFORM GAS SWEETENING
16. Estimate of LNG Cost Reductions
1970’s vs. Today
1970’s
2.53
0.49 30%
30%
decline
of costs
1.54 0.50
1.80 into
pipeline
0.40
1.00 0.40
Lique-
Lique- Trans-
Trans- Regas-
Regas- Total Lique-
Lique- Trans-
Trans- Regas- Total
Regas-
faction portation ification faction portation ification
Source: McKinsey & Company / El Paso
$/MMBtu—2,500 mile voyage
17. CURRENT LNG MARKET TRADE & PRICE
Till March – 2011 (Japan Earthquake & Nuclear
power plant shutdown) LNG was in oversupply
Post Mar – 2011 rebound observed in flow of spot LNG
Stronger spot demand in new markets like South
America & Middle East & Japan / Korea
Producing countries which focused earlier on USA
market are strategizing of securing new market
More traders involvement with increased need to
flexibility
Global overall trade grew by 20% last year to 220
Million Ton with 50% growth coming from Qatar &
Balance from Russia, Indonesia, Yemen, Nigeria, Peru
Recent Geopolitical development had impact in North
Africa (Egypt, Libya, Algeria etc)
Major demand came from Asia (Korea, Japan, China,
India), Europe (UK, Italy), South America, ME
USA demand failed to materialize
18. CURRENT TRENDS IN LNG
LNG import terminals in USA planned to become
export terminal in future to sell the Shale Gas to
other global customers
Likewise the LNG export terminals of dwindling
gas fields like in Indonesia are planned to be
converted to import terminals (Exxon)
Australia, China, Japan & Qatar influence the LNG
market most and trend expected to continue
Spot LNG in demand
Floating Regasification coming in operation in
Argentina, Brazil, Dubai, Kuwait, UK & USA
LNG carriers may continue to see slowdown in new
orders but expected to rise after 2013 as demand picks
Lower level of investment expected to continue in
short term on new LNG facilities
19. EXPECTED MARKET TREND
Major growth demand wise likely to be in Asia
Australia expected to become major producer
surpassing Qatar in next 5 years
With development of Shale Gas and slowdown in
economy & additional capacity of LNG coming up the
price are likely to be in control
Geopolitical developments may impact the price &
demand for spot LNG
23. GAS TRANSPORTATION BY SHIPPING – IMPORTANT HIGHLIGHTS:
LNGC are cryogenic cargo tanks or big
thermos containers where the LNG is
maintained @ -160 C & atmospheric pressure &
is constantly boiling.
In LNGC, some gas is removed to prevent
pressure build up due to surrounding heat called
as boil off gas or BOG. This is either reused as
fuel for ship propulsion or re-liquefied &
returned to cargo
LNG transporting is economic over long
distance (eg. Alaska to Japan or Australia to
USA or Japan, Qatar to UK / USA)
Common size of LNGC has cargo space storage
of 140,000 M3 (Cargo dead weight of 64,000 Ton
LNG).
24. GAS TRANSPORTATION BY SHIPPING – IMPORTANT HIGHLIGHTS:
The shipping cost represent @ 10 to 30% of the
total costs in LNG value chain
Approx 320 LNG Carriers are in service (out
of total 1500 Liquefied Gas ships under
operation worldwide) – in comparison there are
@ 12,000 Oil tankers of these approx 800 are
Very Large Crude Carriers (VLCC’s)
Approx 50 LNGC are on order under
construction
25. GAS TRANSPORTATION BY SHIPPING – IMPORTANT HIGHLIGHTS:
Small size LNGC is down to 1,100 m3(500
ton) and large LNGC are now built upto
266,000 m3 (122,000 Ton Q-Max class) to
reduce delivery cost.
Typically LNGC are built for specific
project for long term upto 30 years to match
market contract.
Very few LNGC available on spot market
Depending on the GSA these are either
arranged by buyer or seller on FOB or CIF
ex-ship terms.
LNG Shipping is usually arranged from
third party owner under long term time
charter arrangement (charter parties)
27. 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/d
would be well suited for CNG import rather than LNG,
which would require a generating capacity of 5000 MW (!) of
gas-fired generation (if all used for that purpose).
28. COMPRESSED NATURAL GAS (CNG) COMPRISES
Compressed gas (1500 to 2500 psi and 0 to - 40 F)
Two technologies for CNG transport
a. The Cran & Stennings approach
b. The Enersea approach
Example: Consider the transportation of 300
MMscf 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
30. FOR TRANSPORTATION OF THE CNG
90% of the investment involved is in shipping of the
gas.
Loading and unloading is possible and easy with small
facilities.
31. ESTIMATED NUMBER OF SHIPS
Factors for determining the number of ships: loading rate
of the gas, distance for which the CNG is transported and
the time required for a ship to make one complete cycle.
Distance No. of ships
miles
1000 4
1500 5
2000 6
2500 7
3500 8 to 9
5000 11 to 12
32. 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 more
attractive than LNG
33. 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.
35. TYPICAL COST COMPONENTS FOR CNG
PROJECT
Unloading
6%
Compression
and loading
5%
Shipping
89%
36. 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 LNG
Disparity in the volume transport hinders commercial
possibility of CNG
37. GAS TO LIQUIDS OR GTL
The Fischer-Tropsch synthesis (F-T
synthesis) is one of the most important
technologies for GTL.
A main advantage of the F-T products is
the absence of sulphur, nitrogen and
complex cyclic hydrocarbons resulting in
almost no emissions of sulfur dioxide,
nitrous oxides and unburned
hydrocarbons.
For 100 barrels of liquids 1 MMscf of gas
is needed
First GTL Project announced in USA
recently
38. COMPARISON OF CNG AND GTL
GTL (Gas-to-liquids) technology converts
natural gas into hydrocarbon liquids.
Impetus for the GTL technology: Clean
fuel obtained as product and easy
transportation
Main products: Middle distillates like
gasoline, kerosene, jet fuel,naphtha and
diesel
45. COAL BED METHANE GAS (CBM)
WHAT IS COAL BED METHANE?
Standard natural
gas: CH4
Methane forms along
with coal
It is held in the cleats
with the coal
Substantial water
pressure needed to
keep methane in the
coal: 400 to 1000 ft ?
46. COAL BED METHANE GAS (CBM)
Relieve pressure to
release methane by
removing water
Domestic wells
completed in seams
produce methane due to
drawdown caused by
nearby pumping
6-7 times more natural
gas than in traditional
natural gas fields
47. COAL BED METHANE IMPACT / ISSUES
• Groundwater depletion
Water 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
49. 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 region
may again alter the LNG demand scenario
FLNG & FCNG likely to come up (Indonesia (Shell’s
prelude), Brazil and ME are working on FLNG
Recent development in Nuclear plant in Japan may
increase the Future Gas demand as more Gas based
power plant likely
FSRU is another option likely to be considered
Global economic slowdown and Geo political
developments may have contradictory pressure on gas
price
50.
51. 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
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57. * 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 & IT
IS ALSO NAME OF FAMOUS ARABIAN WARRIOR & POET ANTARA WHO LIVED
LIFE KING SIZE ON HIS TERM!
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UNIVERSE AND SIGNIFIES US TO FORGET OUR EGO & WORK WITH A SINCERE
AND NOBLE INTENTION DURING OUR TRANSIT THROUGH THIS WORLD IN THIS
HUMAN FORM!
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GALAXY AND SURPRISINGLY THERE ARE TRILLIONS OF CELLS WITH EACH
CELL HAVING POWER OF REGENERATION. WE ARE PART OF SAME SUPREME
BEING OR GOD & PART OF SAME UNIVERSE WITH ALL ITS POWER AT OUR
DISPOSAL. LETS USE THIS POWER TO HELP OTHERS AND SAVE ENVIRONMENT.
BEFORE HARMING ANYONE PLS THINK..........LIVE & LET LIVE BE OUR MOTTO.
58. ACKNOWLEDGEMENTS (PHOTOGRAPHS; ARTICLES & PRESENTATION….)
· ABS
· S he ll
· FPC
· Technip
· FlexLNG
· QG
· ConocoPhillips
· Saipem
· DNV
· Aker
· Waller M arine
· EnerSea Votrans
· E & P (Brian)
· Asim Deshpande & Michael
Economides ANY QUESTIONS?
· CE & CG Team (Bill / Milind) &
others