The World of Energy

Chapter 5 Natural Gas

5.1. Introduction

Ch. 5 - 1
 Natural Gas

http://www.energy.gov.ab.ca/222.asp

www.citypublicservice.com

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For Too Long Natural Gas Was The Ugly Ducking

Ch. 5 - 3
Gas Slowly Evolved Into The Energy Swan

Ch. 5 - 4
Gas Is Now Belle of the Ball

Ch. 5 - 5
The Rest of the Globe Fell In Love With LNG

Ch. 5 - 6
The World of Energy
Chapter 5 Natural Gas

5.2. Natural Gas Components

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Natural Gas
Mostly methane, also ethane, propane
and butane
Most desirable of fossil fuels
Produces more heat and less carbon
dioxide than coal or petroleum
Has fewer impurities
Still produces CO2, dangerous to
transport

Ch. 5 - 8
 What is Natural Gas?

Constituent Typical % of Chemical Heating Value

gas Structure (BTU/lb)

Methane 70-95 CH4 23,571

Ethane 2.5-12 C2H6 21,876
Propane 1-6 C3H8 21,646
Butanes* 0.2-2.5 C4H10 21,293
Pentane 0.2-1 C5H12 20,877

*Butane includes iso and N varieties

Dont forget H2O, CO2, H2S, N2, O2 in small amounts

Ch. 5 - 9
Natural Gas

Natural
Gasoline
2%
Butanes Cont.
4% 4%
Propane
9%

Methane
Ethane 68%
13%

TYPICAL UNPROCESSED GAS

Ch. 5 - 10
 Natural Gas Terminology

LPG = Liquified
Methane (C1)
Petroleum Gas
Ethane (C2)

LNG NGL=Natural Gas

Liquids
Propane (C3)
LPG
Butane (C4)
LNG = Liquified
Natural Natural Gas
Gas
Heavier Fractions
Ex-Well Variously known as:
C5 + NGL SNG = Synthetic
Pentanes Plus or Substitute
Natural Gasoline
Condensate Natural Gas

Non Hydrocarbons

e.g. water, carbon dioxide, etc.

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 Natural Gas Components

Methane Other hydrocarbons Inerts Water Impurities

Carbon
Nitrogen
dioxide

Ethane Propane Butane Pentane plus

H2S Organic sulphides Mercaptans

Ch. 5 - 12
Associated and Non-Associated Gas

Reservoirs with Oil

Option 1: Fully dissolved gasses
Option 2: Gas cap
More gas than can be dissolved
Pressure (vapor pressure),
Temperature, Quantities of gas

Reservoirs without Oil

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The World of Energy
Chapter 5 Natural Gas

5.3. Gas Resources & Utilization

Ch. 5 - 14
 Derivatives of Natural Gas
Residential,
Commercial,
Methane
Industrial &
Power Plants
Natural Gas Agricultural Chemicals
Foam
Stream
Food Packaging
Paints
Ethylene Textiles
Carpeting
Dry Cleaning
Furniture
Methane Propylene Bottles
Ethane Pipe & Fittings Fiber
Propane Resins
Butylene Insulation Auto Parts
Butane
Pharmaceuticals
Cements
Xylene Cosmetics
Detergents
Tires Toys
Toulene Lubricants Adhesives

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Industrial Natural Gas Usage
Natural Gas is used in a number of different industrial processes

Heat

Boiler/Steam

Feedstock

Natural
Gas Power
Generation

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 Role of Natural Gas
Energy
Petroleum Natural Gas Coal Biomass Sun, Wind
source

Road Gas- Natural Elec-

LPG Methanol Ethanol Hydrogen
fuel oline Gas tricity

Vehicle / Internal
Engine combustion Dual Fuel Hybrid
Electric Fuel Cell
type Engine ICE Electric
(ICE)

Natural Gas Compatible

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Plentiful Other Natural Gas Resources

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 Worldwide Stranded Gas

TCF
5+
1-5
0.5-1

Undeveloped Non-Associated
Gas Fields larger than 0.5 TCF

Source: Petroconsultants S.A.

Ch. 5 - 19
Natural Gas Transportation System

Producing Wells

Gathering Lines Transmission Lines

Processing Plant

Compressor LNG
Stations or Propane/Air Plant

Underground
Storage
City Gate
(Regulators/Meters)

Large Volume
Customer

Residential
Customers
Regulator/Meter
Commercial
Customers
Large Volume
Customers
Distribution Mains (Lines)

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World LNG & Pipeline Gas Trade

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Exploitation of Stranded Gas

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 Gas to Chemicals Processing Routes
Diesel
Gasoline
Fischer Upgrading LPG
Tropsch
Synthesis Fuel Gas
Natural Gas / Waxes/Lube Oil
Associated
Power Plant Power
Gas
SynGas Fuel Cells
Processes
Chemicals (MTBE, Acetic
Acid, Formaldehyde)
Methanol to Gasoline or GTL
Diesel/Gasoline
Methanol M To Propy
Synthesis Propylene/Polypropylene
Acrylic Acid Acrylic Acid/Acrylates
MT Olefins
Ethylene/Propylene
MT DME Fuel (DME)
MT Hydrogen Hydrogen

Ammonia Ammonia/Urea/Fertilizer
Synthesis

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 Gas-based Petrochemistry

Feedstock Intermediates Petrochemical

Products
OIL
Conventional Route Aromatics
Cracker Benzene Polyolefins
Toluene PE, PP
Xylenes
Acrylates
Natural Gas
Associated Gas MTO Olefins Polycondensates
Stranded Gas Ethylene PC, PET,
Emerging Route Propylene PBT

Syngas Methanol Solvents

COAL Oxygenates
Future Route ? Alcohols, Ethers,
Esters, Acids,
Fuels
Aldehydes Fuel additives

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 Natural Gas Transportation Cost
As the distance over which natural gas must be transported increases, usage of LNG has economic
advantages over usage of pipelines. Liquefying natural gas and shipping it becomes cheaper than
transporting natural gas in offshore pipelines for distances of more than 700 miles or in onshore pipelines
for distances greater than 2,200 miles.

$3.50

$3.00

$2.50

$2.00
$/MMBtu

Gas Pipeline - Offshore

$1.50
Gas Pipeline - Onshore
LNG
$1.00

$0.50

$0.00
0 620 1,240 1,860 2,480 3,100 3,720 4,340 4,960
Distance in Miles
Source: Institute for Energy, Law and Enterprise, University of Houston Law Center
Ch. 5 - 25
Gas Transport and Gas Conversion

Gas Conversion Gas transport

Fuels (GTL)

Hydrogen
Natural-gas Pipeline
Chemicals market

Energy market
Ammonia
LNG
Fuel and

Onshore
Methanol Offshore
CNG
Olefins (MTO/GTO)
NGH
NGLs - Petrochem

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Gas Handling Options

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Gas Transportation & Conversion

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Pathways to Gas Utilization

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Gas Transportation Value Chains

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Gas Technology Application Band

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Gas Transportation Options

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Natural Gas Reforming Technologies

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 Gas Technology
Access to Stranded Gas Resource
Stranded Resource Available Technology Market

LNG Conventional NG Market

Mature Re-gasification feeds
established infrastructure
Technology
and users

New NG Markets
GTL Transportation Fuels
Maturing
Technology Petrochemicals

Ch. 5 - 34
 GTL Technology Advancing
GTL Plant Costs Normalized to 50,000 b/d Plant
80
Historical 1997 poll Nigeria
extrapolation of experts (base case)
70 adjusted to
New 50,000 b/d,
Zealand startup in
2005
60

50 Malaysia

40 South
Africa

30 Exxon
Qatar
Sasol
Chevron joint
venture target
20
New Refineries
10

0
1980 1985 1990 1995 2000 2005 2010 2015
GTL technology must achieve a capital cost < 20 M$ / daily bbl to be
competitive with new refineries
Source: Oil & Gas Journal, New JV markets one-stop GTl package, December 18, 2000

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Technology Challenges for Natural Gas

CHALLENGE TECHNOLOGY INVESTMENTS

Near Term Mid Term Long Term Nanotechnology
1. DEVELOPMENT OF Incentives for Ultra-deepwater Methane Hydrates
CONVENTIONAL/ production Unconventional
UNCONVENTIONAL GAS Enhanced Production New Architecture
RESOURCES drilling/seismic Advanced CBM for Ultra-deepwater
techniques production
Reservoir
management
CBM
2. ACCESSING LNG Infrastructure Super Pipelines Methane Hydrates
STRANDED GAS LNG Quality LNG Gas By Wire
RESOURCES GTL GTL
CNG CNG Transport
3. EXTENDING THE EOR EOR Hydrogen
RESOURCE BASE BY Wind Coal Gasification Infrastructure
DEVELOPING
Geothermal Coal Liquefaction
ALTERNATIVES TO GAS Energy Biomass
Gasification
Solar
Photovoltaics
4. INCREASED Power Generation Large Scale Carbon
EFFICIENCY OF -Gas Turbines Deployment of Sequestration
NATURAL GAS -Distributed Distributed
USE/ENVIRONMENTAL Generation
Generation
MITIGATION Fuel Cells
-End Use
Efficiency Next Generation
Turbines
Ch. 5 - 36
Challenge #1: Developing Gas Resources

Near Term Mid Term Long Term

Enhanced Drilling Ultradeep-Water Methane Hydrates

Production
Enhance Seismic
Techniques New Architecture for
Unconventional Gas
Ultradeep-water
Reservoir Production from
Production and
Management multiple sources
Transport

Unconventional Gas Deep Drilling

Production
Advanced Coalbed
Methane

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Challenge #2: Accessing Stranded Natural Gas
Resources

Near Term Mid Term Long Term

LNG Infrastructure Super Pipelines Methane Hydrates

and Efficiency
Floating LNG
Production/
LNG Quality Gas by Wire
Regasification/
Storage

Gas to Liquids
GTL

Compressed Natural
Gas Transport

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Challenge #3: Extending the Resource Base By Developing
Alternatives to Natural Gas

Near Term Mid Term Long Term

Wind Energy Coal Gasification Hydrogen and

Hydrogen
Coal Liquefaction Infrastructure
Geothermal Energy
Enhanced Oil
Recovery Affordable Nuclear
Power Plants With
Manageable Waste
Biomass
Gasification

Solar Photovoltaics

Ch. 5 - 39
Challenge #4: More Efficient Use of Natural Gas/
Environmental Mitigation

Near Term Mid Term Long Term

Power Generation Advanced Gas Carbon

Gas Turbines Turbines Sequestration

Large Scale
Distributed Distributed Super Batteries
Generation Generation

Fuel Cells
End Use Efficiency
Gas to Liquids
Gasification

Ch. 5 - 40
Liquefaction for Separation

Hydrocarbon Pressure Temperature

Heavier (Psi) (OF)

Methane 500 -131

Ethane 500 60

Propane 85 60

Butane 26 60
Pentane Liquid at STP

Ch. 5 - 41