CHAPTER 6

GAS UTILIZATION

GAS RESERVES STATUS

Malaysia has the 16th largest gas reserves and the 30th largest crude oil reserves in the
world as at end 2003. Also Malaysias gas reserves stood at 84.9 trillion cubic feet (tcf)
and this translates to about 66.8 years of reserves per production ratio.
Figure 6-1: Malaysian Natural Gas Reserves

Source: www.gasmalaysia.com

Natural Gas reserves under the Malaysia-Thailand Joint Development Area (JDA) are
estimated to be around ten trillion cubic feet. The gas wills tie-in with the Peninsular Gas
Utilisation (PGU) system at Changlun, Kedah. Initial volume is 290 million standard cubic
feet per day (mmscfd) rising to 550 mmscfd by year 2005 / 2006.
Apart from the Malaysia-Thailand JDA, a new source of gas supply to Peninsular
Malaysia will be from the West Natuna Field in Indonesia. PETRONAS signed an
agreement on 28 March 2001 with PERTAMINA (The Indonesian state oil and gas
company), for the import of 1.5 trillion scf of gas over a period of 20 years.
Another agreement involving the supply of 300 mmscfd to Malaysia for 20 years is
expected to be concluded by the end of 2002. The delivery of gas from south Sumatra to
Malaysia is scheduled for early 2005.

85

CHAPTER 6

GAS UTILIZATION

Fig. 6-2 and Fig. 6-3 from BP Review of World Gas 2003 shows Asian and world gas
reserved status as at end 2003.
Figure 6-2: Asian proved gas reserves status

THAILAND, 7%

VIETNAM, 4% BRUNEI, 5%

MYANMAR, 6%

INDONESIA, 40%

MALAYSIA, 38%

ASEAN TOTAL: ~224 TSCF

Figure 6-3: World Proved Gas Reserves Status

AFRICA
8%

ASIA PACIFIC
8%

NORTH AMERICA
4%

MIDDLE EAST
41%

SOUTH AMERICA
4%

EUROPE &
EURASIA
35%

WORLD TOTAL: ~ 6205 TSCF

86

CHAPTER 6

GAS UTILIZATION

MALAYSIA ENERGY DEMAND

Energy demand is set to outpace the growth of GDP and natural gas is poised to face a
higher growth rate. The contribution of natural gas as a main source of primary
commercial energy supply is expected to increase from 29.9 percent in year 2000 to
37.1 percent in year 2005.
Natural gas will continue to remain the fuel of choice for power generation as compared
to oil, coal and hydro, accounting for 61 percent of the fuel generation mix.

Figure 6-4: Fuel for Power Generation

Source: www.gasmalaysia.com

By year 2005, 1,687 mmscfd of gas is expected to be used for electricity generation.

COMPONENT OF NATURAL GAS

The organic origin of Natural Gas explains why it is made of hydrocarbons (compounds
of hydrogen and carbon). The principle ingredient of Natural Gas is the hydrocarbon
compound called methane. In many Natural Gas deposits, methane makes up 80 to 90
percent of the gas.

87

CHAPTER 6

GAS UTILIZATION

Figure 6-5: Natural Gas Composition

Source: www.gasmalaysia.com

Natural Gas may contain other small hydrocarbon molecules such as ethane, propane,
butane, pentane, and hexane. Besides these hydrocarbons, it may also comprise such
inorganic compounds as nitrogen, helium, carbon dioxide and hydrogen sulphide.

Constituent of Natural Gas

88

CHAPTER 6

GAS UTILIZATION

Gas Malaysia Sdn. Bhd.

Gas Malaysia is joint venture company established by MMC-Shapadu Holdings (55%),
Tokyo Gas-Mitsui & Co. Holdings (25%) and PETRONAS (20%).
Gas Malaysia was incorporated in May 1992 to promote, construct and operate Natural
Gas Distribution System in Peninsular Malaysia. Their mission is to provide the cleanest,
safest, cost effective and reliable energy solutions to the nation.
Gas Malaysia supplies Natural Gas to a wide range of industries namely chemical, glass,
basic metal, rubber, non metallic material and others. As at June 2004, it has a network
of over 900 kilometers in pipelines, which leads to over 32 communities and enables
supply to key industrial areas. Gas Malaysia pipes gas to industrial, commercial and
residential sectors and derives about 98% of its revenue from the industrial sector
comprising mainly manufacturing plants.
With the announcement of the new gas tariff made in March 2003, it has positioned
Natural Gas as the most affordable and attractive energy solution. The fixed gas price
system has eliminated the volatility of energy pricing. Natural Gas is currently in between
38% to 63% cheaper than other alternative fuel. With the potential savings in sight, Gas
Malaysia is expecting a sharp increase in the demand for Natural Gas.

GAS UTILIZATION
Factors which influence the pattern of gas utilization as follow;

Sources of gas (locally produced vs. import)

Infrastructure (existing pipeline vs. newly built)

Weather

Energy Intensive vs. Non energy intensive industries

Population density

Alternative fuel (price)

Government policy

89

CHAPTER 6

GAS UTILIZATION

Pattern of Gas Utilization

Table 6-1: Breakdown of pattern of gas utilization for various countries
MSIA (%)

EUROPE (%)

USA (%)

JAPAN (%)

Petrochemical

Power generation

79

13

14

67

Industrial/Commercial

10

27

29

Domestic

48

40

22

Others

13

NATURAL GAS FOR POWER GENERATION

Sources of primary energy for electricity generation
a) Hydropower (water)
b) Nuclear power (uranium, thorium converted to plutonium)
c) Solar power (sun)
d) Fossil fuels (coal, fuel oil, NG)
e) Renewable (wind, tidal waves, geothermal, wood agro-waste, municipal waste)
Figure 6-6: Electricity Generation by Fuel 1970-2020 (106 kWh)

Source: EIA Annual Energy Outlook 2002 with Projections to 2020

90

CHAPTER 6

GAS UTILIZATION

Capital cost of power plants

1. Hydropower

most expensive

2. Nuclear power
3. Steam turbine (oil, coal)
4. Combined Cycle Power Plant (gas)
5. Gas turbine (gas)

least expensive

Typical Power Plant Efficiency

a) Combined Cycle

40-55%

b) Diesel Engine

40-45%

c) Steam Turbine

26-42%

d) Nuclear Plant

30-35%

e) Gas Turbine

25-30%

Advantages

Reliant supply large and growing gas reserve

Lower green house emission environmental-friendly

Site is clean and compact

NOx emission control technology available

Negligible sulfur and ash emission

Development of high efficiency and low cost CCPP

CCPP can be built in much more shorter time than other technologies

Disadvantages

Possible leakage problem from pipeline

Not a sustainable fuel

Extraction of natural gas and the construction of natural gas power plants can
destroy natural habitat for animals and plants.

Possible land resource impacts include erosion, loss of soil productivity, and
landslides.

91

CHAPTER 6

GAS UTILIZATION

Table 6-3: Fuel% for power generation in Malaysia

FUEL/YEAR

1980

1984

1986

1988

1993

1998

2000

Hydropower

14

25

25

28

20

12

Oil

85

73

58

49

25

18

13

Natural gas

17

21

45

67

70

Coal

10

92

CHAPTER 6

GAS UTILIZATION

Electricity Generation
Power plants use several methods in converting natural gas to electricity. One process is
to burn up the gas in a boiler to produce steam, which is then used by a steam turbine to
generate electricity. A more common approach is to burn the gas in a combustion
turbine to generate electricity.
Another technology that attracts many power plants company is to burn the natural gas
in a combustion turbine and use the hot combustion turbine exhaust to make steam to
drive a steam turbine. This technology is called "combined cycle" and said that it can
achieves a higher efficiency by using the same fuel source twice. Combined-cycle plants
offer extremely high efficiency, clean operation, low capital costs and shorter
construction lead times.
Figure 6-7 shows the increasing thermal efficiency from the use of thermal brown coal to
cogeneration and an inverse relationship to carbon dioxide emissions.

Figure 6-7: Thermal efficiency of several methods in electricity generation

93

CHAPTER 6

GAS UTILIZATION

Environmental benefit of natural gas

Coal contains more carbon and less hydrogen than other fossil fuels such as oil and
natural gas, and as such it gives off more CO2 per unit of electricity produced than any
other fuel. As shown in Table 6-8 coal combustion produce the highest CO2 among other
electricity generation technology. At the present time, coal is said to be responsible for
30-40% of world CO2 emissions from fossil fuels.

Table 6-8: Carbon dioxide emissions of electric power plant given fuel extraction and
operation (metric tons of CO2 per GW/hour output)

Source: U.S. Department of Energy

Coal combustion also results in huge quantities of waste heat require large amounts of
water for cooling. The collection of this water from major water bodies threatens local
aquatic life.

94

CHAPTER 6

GAS UTILIZATION

i) Less emission of harmful gases

Using natural gas in place of other fuels can help ease a number of environmental
concerns especially on greenhouse gas emissions, acid rain, smog, solid waste and
water pollution.
Natural gas combustion virtually produces no emissions of sulphur dioxide or particulate
matter and far lower levels of green house gases and nitrogen oxides than such
competing sources of energy as oil and coal. In addition, unlike the coal and oil
processes, natural gas process produces virtually no solid waste and has much less
impact on water quality.
Table 6-4: Comparison of Air Pollution from Fossil Fuels (pounds of air pollutants
produced per billion Btu of energy)
Fuel source

Natural gas

Oil

Coal

Carbon dioxide

117,000

164,000

208,000

Nitrogen oxide

92

448

457

Sulphur dioxide

0.6

1,122

2,591

Particulates

7.0

84

2,744
Source: Energy Information Administration

The inherent cleanliness of natural gas when compared with oil and coal, coupled with
the high efficiency of natural gas equipment, means that substituting gas for the other
fuels can help reduce the emission of the air pollutants that produce smog and acid rain
and that could worsen the green house gases effect.
ii) High energy efficiency
The natural gas system is very efficient like the other types of appliances and equipment
that operate on natural gas. Energy efficiency refers to the energy input per unit of useful
energy output. In other words, energy efficiency measures how much energy is used or
lost in providing such things as hot water, steam, warm or cool air. The higher the

95

CHAPTER 6

GAS UTILIZATION

energy efficiency, the greater the conservation of energy and the lower the
environmental impacts is.
When the entire cycle of producing, processing, transporting and using energy is
considered, natural gas is delivered to the consumer with a "total energy efficiency" of
about 90 percent, compared with about 27 percent for electricity.

NATURAL GAS FOR INDUSTRIAL AND COMMERCIALIZATION

Industrial

Transportation

Space cooling

Natural Gas for Industrial

Natural gas is used as a primary fuel in industrial sector. In United Kingdom there are
two classifications which are low temperature applications (<500oC) and high
temperature applications (>500oC).
Low temperature applications
a) Steam raising
Major application
Centralized boiler steam distributed through pipe for industrial processes
(including space heating)
Advantage

- Fuel flexibility (dual-fuel boiler)

- Steam is easy to distributed
- Reliable boiler

Disadvantage

- Low overall thermal efficiency (50%)

- Transmission losses
- Boiler losses

b) Space heating
Hot water, steam, direct gas fired

96

CHAPTER 6

GAS UTILIZATION

c) Drying
Direct drying battery plate drying
Air drying
Steam paper mill
d) Air conditioning
Absorption chiller, Gas engine vapour compression cycle, cogeneration
High temperature application
Characteristic of high temperature process
-

High temperature >750oC

Often dirty flue gases (coal fired)
High energy usage
Low efficiency (2 to 3% is not uncommon)
Very large variation in design
a) Bulk metal melting
Ferrous melting (iron/C metal e.g. steel)
Non ferrous meting (Al, copper, zinc, etc)

up to 1700oC
300-1400oC

b) Metal reheating e.g. forging, rolling, pressing, extruding

1000-1400oC
480-550oC
680-780oC

Steel
Aluminium alloys
Brass

c) Metal heat treatment (heating metal in its final/near final form)

700-800oC

Non ferrous heating

(annealing, aging
processes)
Ferrous heating
(annealing, normalizing,
hardening, temperature etc)
Galvanizing

700-1100oC
480oC

d) Glass melting

up to 1400oC

e) Glass annealing

430-700oC

f)

Ceramics
up to 1400oC
up to 1800oC

Pottery tableware, wall tiles

Quality refractory

97

CHAPTER 6

GAS UTILIZATION

Natural Gas Role in Malaysia Industry

In the industrial sector, natural gas commonly used as an energy source for food
processing, glass making and even steel fabrication. Some selected industries are
described as follow.

i) Ceramic Industry
Ceramic products are formed from clay or similar substances in the plastic state, which
is dried and heated at a sufficiently high temperature to provide the necessary strength.
Natural gas is mainly used in secondary melting, casting of molten steel, cutting and
refining of billets and slabs.

Figure 6-9: Ceramic Tile Production Process

Source: www.gasmalaysia.com

Drying (Spray Dryer) - Instant drying of the wet atomised ceramic slip is achieved
through a high evaporation process which utilises the hot air produced from the natural
gas combustion process.
Drying (Horizontal & Vertical Dryer) - After the powder is pressed to form tiles, drying in
the horizontal and vertical dryers further reduces the moisture content.
Drying (Kiln) - Easy controllability of natural gas combustion creates a steady
temperature distribution profile within the kiln, which is required by ceramic
manufacturers. It also increases the thermal efficiency by recycling the high temperature
hot air in the kiln.

98

CHAPTER 6

GAS UTILIZATION

ii) Glass Industry

In the glass industry, cullet and silica are heated into molten glass and subsequently put
through various heating processes before resulting in an end product.
Natural gas is mainly used in processes such as melting, refining, fabricating, annealing,
fiberising, baking and floating bath.
The end products include television tubes, bottles, tableware and sheet glass.

Figure 6-10: Gas Production Process

Source: www.gasmalaysia.com

Melting - High levels of luminosity and flame temperature will result in an increased
thermal efficiency. It also provides a higher rate of heat transfer to the raw material. In
addition, heat recovery by using regenerators offers substantial energy savings.
Refining - A constant heating value is crucial for this process in order to maintain the
required temperature and also to ensure the product quality.
Fabricating - High flame temperature is essential to heat the fabricating mould. Clean
combustion products, such as Natural Gas, are necessary to ensure that the mould
surface remains clean at all times.
Annealing - A high velocity burner is used to create a uniform temperature distribution
within the furnace.

99

CHAPTER 6

GAS UTILIZATION

Fiberising - Jet flames ensure stability and high temperatures even in high turbulence air
conditions.
Baking - A high velocity exhaust gas penetrates and provides a constant temperature
through out the thick layers of glass fibre.
Floating Bath - Easy controllability of natural gas combustion creates a steady
temperature profile to produce high quality sheet glass.
iii) Rubber Industry
The manufacturing process for rubber products consists mainly of latex dipping, heating
and drying.
Natural gas is the main energy source used for heating in the leaching process, which
uses hot oil or steam. For drying and curing processes, natural gas powered infrared
burners are used to enable direct heating.
Rubber end products include surgical and examination gloves, neurological catheters,
fingerstalls and decorative balloons.

Figure 6-11: Finger Stall Production Process

Source: www.gasmalaysia.com

100

CHAPTER 6

GAS UTILIZATION

Figure 6-12: Rubber Glove Production Process

Source: www.gasmalaysia.com

Drying & Curing - Direct heating produced from infrared burners or hot exhaust gases
are used in this process to ensure better thermal efficiency. The heat from direct heating
also immediately produces a uniform oven operating temperature. Moreover, the
cleanliness of natural gas exhaust gases improves the quality of products.
Steam & Oil Heating - The high combustion ratio for natural gas eliminates the problem
of soot formation on the heat transfer tubing thus increasing the thermal efficiency
prolonging the equipment lifespan.

iv) Steel Industry

In the steel industry, pig iron and scrap iron are transformed into finished products by
undergoing various heating processes.
Natural gas is mainly used in secondary melting, casting of molten steel, cutting and
refining of billets and slabs.
The major steel end products include pipes, wires and coated sheets.

101

CHAPTER 6

GAS UTILIZATION

Figure 6-13: Steel Production Process

Source: www.gasmalaysia.com

Melting - Steel melting is achieved by means of striking an electric arc between graphite
electrodes and the charge. Natural gas / Oxygen burners are used for supplementary
firing in this process. It produces a high flame temperature to preheat the raw material
and maintain molten steel temperature, thus reducing energy costs in the melting
process.
Holding - High levels of luminance and flame temperature produced by the combustion
of natural gas is used to provide enhanced heat transfer (increased efficiency) to
maintain the molten steel temperature.
Casting -The easy controllability of natural gas firing provides a constant heating
environment to hold the molten steel at the required temperature for the casting process.
Cutting - A natural gas / oxygen cutter is used to ensure a clean cutting surface for the
steel billets.
Reheating - By using twin-bed regenerative natural gas combustion burners, a
substantial amount of energy can be recovered, thus increasing the thermal efficiency of
the furnace.

102

CHAPTER 6

GAS UTILIZATION

Natural Gas for Transportation

Generally gasoline or normally known as petrol and diesel are the primary fuel for
vehicle. However, as the increasingly stringent emission regulations on internal
combustion engines, there has been an emphasis on using alternative fuels. Alternative
fuel for transportation from natural gas comes into attention as it burn cleanly and they
are separated into two types;

Gaseous fuels

Liquid fuels

Natural gas, LPG, Propane,

Hydrogen, Hytane

Methanol, Di-methyl ether

(DME)

Table 6-5: Automotive fuel derived from natural gas

Gaseous fuels in general and natural gas in particular are promising alternative fuels due
to their larger supply, economical cost and adaptability as engine fuels. In vehicle,
natural gas also emits less nitrous oxide (NOx), and un-burnt hydrocarbons, thus
reducing acid rain and urban air pollution, also known as smog. However natural gas
has not been widely used for transportation, primarily due to its lower energy density and
distribution difficulties.

Vehicle run on NG
NG can be used in vehicles as described as follows;a) Conversion to liquid fuels such as gasoline, middle distillates (Shell
MDS), methanol (Mobil MTG process)
b) Direct use in the form of Compressed Nat Gas (CNG) in converted petrol
engines. This is known as Natural Gas for Vehicle (NGV)
c) Direct usage in the form of Compressed Nat Gas (CNG) in a dedicated
gas engines

103

CHAPTER 6

GAS UTILIZATION

The use of alternative gaseous fuel in diesel engines is increasing globally. In fact,
vehicle that used natural gas as the fuel keep growing day by day. It is reported that in
the transport sector, there is around 100,000 vehicle on UK roads in 2003, compared to
less than 5,000 in 2000 are running on natural gas.
Table 6-6: Liquefied Petroleum Gas (LPG)

Country

1000tons LPG/year
(1989)

Japan

1448

Italy

1248

Holland

928

USA

654

Canada

521

Mexico

725

South Korea

923

Australia

366

Thailand

95

Malaysia

Table 6-7: Natural gas (NGV or CNG)

Country

No of vehichle

No of refueling station

Italy

315,000

300

USSR

250,000

240

New Zealand

110,000

360

USA

30,000

290

Canada

30,000

117

Argentina

125,000

160

Malaysia

2,647

14 (as of 06/2000)

104

CHAPTER 6

GAS UTILIZATION

Natural Gas Vehicle in Malaysia

Pilot programme in Kertih (1986-1988)

1 NGV station; 21 bi-fuel vehicle

NGV for vehicle programmes in Klang Valley and Miri (1991-1994)

14 NGV stations in Klang Valley; 930 bi-fuel vehicle
Mother-daughter stations since the gas pipeline is not yet available to
supply gas, these stations daughter stations are supplied with gas from
a NGV trailer which is filled at a conventional station mother station
located bear the gas pipeline
1 NGV station in Miri

NGV progress in Msia

As at 31st Jan 2002, there are about 6,000 NGV around Kuala Lumpur
nearly 95% are taxis. 22 NGV station exist and 5 under construction. NG
is supply to these station via gas pipelines (conventional system) and
trailers (mother-daughter system)

Retail price of automotive fuels (10/2004)

FUEL

PRICE,
RM/LITRE

NGV

0.5~0.6

Petrol

1.42

Diesel

0.83

105

CHAPTER 6

GAS UTILIZATION

Advantages
a) Meet strict vehicle exhaust standards clean burning

Lower level of air pollution

20% less CO2

70% less CO

No lead, No Sulfur

No particulate/ash

b) Better safety

Lighter than air (SG ~ 0.6)

Higher lean (low flammability/explosion limit ~5%v/v)

High ignition temperature (~630oC)

Easily detected (odouriser added)

Strong/durable storage design (high pressure ~ 3000 psi) can withstand

direct impact form a car speeding at 90 km/hr

c) High octane rating

Efficient burning

Less knocking

d) Run more quietly

Gas burn more slowly than petrol

Reduced wear on engine component

e) Cleaner engine

Improvement in spark plug life

Extend lubricating oil life

106

CHAPTER 6

GAS UTILIZATION

NGV benefit to nation

Cleaner environment

Positive effect on nations cash balance (reduce cash outflow by minimizing

import of crude oils)

Reduce dependence on liquid petroleum (extend life of oil reserves)

Cost saving s (healthcare, pollution reduction)

Spin-off industries

NGV benefit to customers (vehicles owner)

Substantial savings (50%) in fuel cost

Lower maintenance cost

Contributes to cleaner environment

Better safety

Extended travel range

25% road tax deduction

Duel fuel (petrol & NG) system possible

NGV limitations

More frequent refueling

Slight reduction in acceleration power (10-15%)

Additional weight

Boot space reduction

Limited filling stations

107

CHAPTER 6

GAS UTILIZATION

TYPICAL LAYOUT OF A VEHICHLE CONVERTED TO RUN ON NGV

108

CHAPTER 6

GAS UTILIZATION

MOTHER DAUGHTER STATION

109

CHAPTER 6

GAS UTILIZATION

Natural Gas for Space Cooling

NG application for space cooling is mostly for chiller or normally known as air
conditioning system. Almost 50% of building electricity consumption is for space
cooling.
Two basic types of chiller are available:
1. Vapour Compression Chiller
-

conventional/commonly used

use mechanical energy as the primary driving force

2. Absorption Chillers
-

use heat as the primary driving source

this heat can be from direct fired gas burner and hot water or steam

110

CHAPTER 6

GAS UTILIZATION

Why Gas Absorption Chiller?

Low running cost

low electrical power demand

gas and steam is cheaper than electricity

No major moving parts to break

less noise

down

extending the life of equipment

Environmental friendly

CFCs free and clean fuel properties

Efficient part load operation

ideal for the building where the load is varies

Technology is established

available in a range of sizes new technology

(double effect) has increased the COP to 1.1

Do not take valuable floor space

CHP/absorption chiller package

designed for outdoor (rooftops)

is very cost effective

8

Combination of chilling and

Chiller can be operated in reverse cycle to

heating option is available.

provide heating.

Natural Gas District Cooling (GDC)

A centralized energy plant generating thermal media (chilled water) for air conditioning
requirement of several building in a district.

111

CHAPTER 6

GAS UTILIZATION

GDC advantages

More economical due to higher energy efficiency and low fuel cost with the use of a
single system over a wide area and to various types of buildings

Less dependence on the national electricity grid

Saving in capital investment through the elimination of individual structures for a

buildings air-conditioning need.

Higher system reliability with 3 sources of fuel supply : gas, electricity and diesel

Environment friendly with use of clean fuel gas

Reduced air pollution, vibration and noise

Space saving

GDC also usually has a dual function of co-generating electricity

Table 6-8: GDC World wide application

Project

Location

Cooling capacity (RT)

New Shinjuku Metropolitan District

Tokyo

59,000

New Makuhari Metropolitan District

Tokyo

28,000

Shibaura Metropolitan District

Tokyo

10,200

Kansai Int. Airport

Osaka

30,000

New York

28,000

Narita

33,000

Colorado

12,450

JFK Int. Airport

New Tokyo Int Airport
Denver Int. Airport

Domestic application
-

Kuala Lumpur City Centre (KLCC)

Kuala Lumpur Int Airport (KLIA)

New Adm. Centre Putrajaya

Universiti Teknologi Petronas(UTP)

Tanjung Langsat

112

CHAPTER 6

GAS UTILIZATION

Gas District Cooling (M) Sdn Bhd

Operated since 1996, Gas District Cooling (M) Sdn Bhd (96% Petronas & 4% Tokyo
Gas) has been responsible for large scale gas cooling projects At the plant, natural
gas, piped in from the source, is fired to drive gas turbines, producing electricity which
can be channeled to client-buildings if so desired. The heat that is co-generated with
the electricity is harnessed to produce steam which is used to drive the steam absorption
or steam turbine chillers that cool the water. The chilled water is piped to the clientbuildings. Once thermally spent, the water returns to the plant to be re-chilled. To ensure
uninterrupted operation, the system is designed to run on alternative fuels (e.g. diesel)
as a back up.
Figure 6-14: KLCC GDC Plant

1. NG is fired to drive the gas turbine and producing electricity.

2. The heat co-generated with the electricity is used to produce steam which then used
to drive steam absorption that cool the water. The chilled water is then piped
throughout the building to provide the cool air.
3. The water is then returned to the plant.

113

CHAPTER 6

GAS UTILIZATION

NATURAL GAS FOR PETROCHEMICAL INDUSTRY

Physical conversion - involve change in physical state e.g.

Liquefaction to LNG (liquefied natural gas) MLNG at Bintulu, Sarawak

Processing to produce NGLs (natural gas liquids), GPP at Kerteh, Trengganu

Compression to produce CNG for NGV mother station at Shah Alam

Chemical conversion involves change in molecular structure e.g.

Methanol plant at Labuan

Ammonia plant at Bintulu

Gas (Methane)
CH4 + H2)
CO + 3H2

Synthesis Gas (CO, H2)

3H2 + N2
NH3

CO + 2H2
CH3OH

Ammonia

Methanol

Fertilizer

Others

UREA

Explosive

Ammonium Nitrate
Ammonium Phisphate

Fuel Products
MTBE

Synthetic Fibre
Resin

Blend
with Gasoline

114

Others
Acetic Acid
Formaldehyde
Resin

CHAPTER 6

GAS UTILIZATION

NGLs
Ethane (Paraffin)

Propane (Paraffin)

Ethylene (Olefin)

Propylene (Olefin)

Polyethylene

Ethylene Glycol

PVC

Ethylene Oxide

Polystyrene
PET

Polypropylene

Ethanol

Cumene
Isopropanol
Acrylic Acid

Acetic Acid

Acetone

Ethylene plant to produce ethylene based product;

Low density PE (LDPE)
High density PE (HDPE)

Manufacture films (carrier bag)

Injection moulding (house wares, plastic bottle, toys)
Monofilament (fishing nets, ropes)

115

CHAPTER 6

GAS UTILIZATION

Propylene/polyethylene plant

Manufacture household goods, food packaging, adhesive tape, containers, etc

Advantages

Reliability of supply (via pipeline)

Constant feedstock material quality

116

CHAPTER 6

GAS UTILIZATION

PETROCHEMICAL PLANT IN MSIA

117

CHAPTER 6

GAS UTILIZATION

EXISTING MAJOR PETROCHEMICAL PLANT

118

CHAPTER 6

GAS UTILIZATION

NATURAL GAS FOR DOMESTIC MARKET

This is the main gas market for countries such as Europe and USA (~40%). For
example, more than 17 millions household (out of 21 millions) in UK is being supplied by
pipe gas.
Table 6-9: Breakdown of UK domestic gas utilization

USAGE

Hot water & space heating (central)

70

Gas fires (space heating)

18

Cooking

Gas fired heater

Others (tumble dryer, refrigerator)

Natural Gas for Malaysia Domestic Market

Consumption rate is very small that is mostly used for cooking. Natural gas reticulation
systems are not available yet except for small housing estate in Kertih (Petronas) and
(Miri). This reticulation system is not that as attractive as the Pay back time is long.
Potential market is appealing for gas air conditioning especially in condominium.
Major competitors: LPG and electricity

119

CHAPTER 6

GAS UTILIZATION

Table 6-10: Natural Gas End User

Power
Heating fuel

generation

Transportation fuel

Chemical feedstock

fuel
Single cycle
MethaneC1

Residential

gas turbines

Industrial

Combined

Ammonia/
NGV vehicle

Urea

cycle gas

Methanol

turbines

Liquid Hydrocarbon

Single cycle
Ethane
C2

Residential

gas turbines

Industrial

Combined

Ethylene &
NGV vehicle

derivates

cycle gas
turbines
Propane,
C3/Butane,
C4
Condensate

Propylene
Residential

Back-up fuel

LPG vehicle

Industrial

Crude blend

Butadiene &
derivatives

Crude blend

C5+

Crude blend

Refinery feed
Cracker feed

120

CHAPTER 6

GAS UTILIZATION

NATURAL GAS AS IN LPG UTILIZATION

Many domestic and commercial application of LPG are similar to those of natural gas,
but as LPG is available in portable cylinders and disposable cartridges its range of
applications-especially for recreational and leisure use-is much wider. LPG is used for:

Space-heating
Air-conditioning
Hot-water supply
Refrigeration
Cooking
Lighting

Industrial applications are also similar to those of town gas and natural gas, and include
production and manufacture of:

Gas and chemicals

Ferrous and non-ferrous metals
Engineering equipment and ships
Heavy clay and ceramics
Glass
Food and drink
Electrical goods
Vehicles
Textiles, leather and clothing
Paper and print

In addition, because of its mobility, LPG can be put to a number of other uses which are
normally outside the scope of natural gas:

On building and civil engineering sites

In agriculture-various applications
For automotive purposes and in-transit heating and cooling

121

CHAPTER 6

GAS UTILIZATION

Advantages of LPG

over liquid fuels

a) easy handling (moveable cylinder & storage tank)
b) less pollution
c) cleaner working environment
d) high quality product
e) direct use

over natural gas

a) higher CV
b) easy handling (moveable cylinder & storage tank)

Disadvantages of LPG

over liquid fuels

a) lower CV
b) LPG leaf-over

over natural gas

a) higher pollution
b) more dangerous
c) process interruption frequent filling is required

122

CHAPTER 6

GAS UTILIZATION

SKN 4123 COMBUSTION ENGINEERING AND GAS UTILIZATION

ASSIGNMENT 2
Electricity is very important in our lives. We used electricity to lighten up the space when
it is dark, cooking, space cooling and to use electric equipment. Some of the primary
sources of energy for electricity generation are coal, heavy fuel oil and natural gas.
Describe in detail on those primary sources in terms of

i)

origin

ii)

conversion method to electricity

iii)

environmental aspect.

Relevant diagram should be included if necessary.

Instruction:
 Use font 12 and 1.5 paragraph spacing
 Table of content should be included
 Number of pages not to exceed 10 pages exclude diagram

SUBMISSION DATE:

123