A LOOK AT THE DEVELOPMENT TREND OF LIQUEFACTION TECHNOLOGY … · a look at the development trend...

A LOOK AT THE DEVELOPMENT TREND OF A LOOK AT THE DEVELOPMENT TREND OF LIQUEFACTION TECHNOLOGY FROM LIQUEFACTION TECHNOLOGY FROM LIQUEFACTION TECHNOLOGY FROM CHINA’S LNG PLANTSMr. LI WEIMr. LI WEIVICE PRESIDENT OF PETROCHINA VICE PRESIDENT OF PETROCHINA NATURAL GAS MARKETING VICE PRESIDENT OF PETROCHINA COMPANYCOMPANYJAN 2019

CONTENTS

INDUSTRIAL STATUS QUO: LNG PLANTS IN CHINA

MAIN ATTRIBUTES OF MAIN ATTRIBUTES OF LIQUEFACTION INDUSTRY IN CHINA

COMPARATIVE TECHNICAL & ECONOMIC COMPARATIVE TECHNICAL & ECONOMIC ANALYSIS OF DOMESTIC AND WORLD LNG PLANTS

ANTICIPATING TREND OF NATURAL GAS ANTICIPATING TREND OF NATURAL GAS ANTICIPATING TREND OF NATURAL GAS LIQUEFACTION INDUSTRY

1

2

3

4

1/23

INDUSTRIAL STATUS QUO: LNG PLANTS IN CHINA

INDUSTRIAL INDUSTRIAL STATUS QUO: STATUS QUO: LNG PLANTS IN CHINALNG PLANTS IN CHINA

01/

2/23

Zhongyuan Green Energy, was put into production with a capacity of 150,000 Nm³/day

2001

China's LNG market experienced explosive growth and LNG production capacity increased significantly.

2011-2013The total supply of LNG plants in China was 10.05 Million tons.

As of the End of 2017

190 Plants, 28 Mtpa

190 LNG plants have been put into operation in China with total capacity of 110 million Nm³/day, approx. 28 Mtpa in total.

2017

Industrial Status Quo: LNG Plants in China

China's First LNG Plant

3/23

The remaining of production capacity isdistributed in other provinces.

Location:

LNG Plants mainly built and locatedin the Midwest and North Chinaregions, Such as provinces of InnerMongolia (20%) and Shaanxi (17%).

The remaining of production capacity isThe remaining of production capacity isThe remaining of production capacity is11%

Sources: Zhuo Chuang Information 卓创资讯

Provincial Map of LNG Capacity Distribution (2017 )


200%

177%

111%88%

66%77%

555%

66%

33%

4/23

Sources: Zhuo Chuang Information 卓创资讯

Resources:PNG:73%, Rest: 27%

In recent years, the growth rate ofnew LNG plants based on pipelinegas sources have slowed downgradually, and the newly built projectsare mainly unconventional naturalgas-based, such as COG, CBM, SNG,SATG…

PNG

COG

CBM

SNG

SATG

PNG - Pipeline Natural GasCOG - Coke Oven GasCBM - Coalbed MethaneSNG - Synthetic Natural Gas(Coal Based)SATG - Synthetic Ammonia Tail GasSG - Shale Gas

Composition Diagram of Gas Supply in China (2017)

SG


5/23


LNG Plants of CNPC:Since 2010, CNPC has built 24LNG plants, of which 21 arebuilt and 3 are underconstruction. 01 02 03

The plants are mostlybuilt on gas-rich areas,mainly allocated in thenorthwest, the BohaiBay and the southwestof China

21 Plants in operation 3 Under construction

Total design processingcapacity: 22.9 millionNm³/day.

Capacity: 22.9 Nm³/day

6/23


0 1000 2000 3000 4000 5000 6000KaramayGolmud

LunnanHotanHami

GansuJincheng

AnsaiQianlishan

XilaifengDengkou

Luyang Lake Tai'an

BazhouRenqiu 2nd Phase

DagangTai'an Shenzhen Gas

PanjinHuanggang

Guang'anGuangyuan

ZhaoqingChengmaiSongyuan

Unit: 1k Cbm

Distribution Map of CNPC LNG Plants

7/23

Design Capacity: single train with capacity of 1.2 Mtpa, which has been applied in CNPC’sHuanggang LNG plant (put into operation in 2014). With self-designed methane refrigerationsystem and methane-based refrigerant, efficiency of cooling process and energy consumptionare significantly improved.

Capacity: singleHuanggang LNG plant

and methanesignificantly improved

2 Mtpa, which2014). With self-self-self

of cooling process

single train with capacity of 1.2plant (put into operation in 2014

methane-based refrigerant, efficiencyimproved


Import SubstitutionHuanggang LNG Plant

1. An improved Cascade Refrigeration Cycle (CNPC CASCADE)：

Incorporating with experiences ofIncorporatingdesignIncorporatingIncorporatingIncorporating

andwith experiencesIncorporating

operationexperiencesexperiencesexperiences

ofexperiencesexperiencesexperiencesexperiences

of smallofofexperiences

anddesigndesignmediummedium-

andand operationoperationandandandandandandandandmedium--sized

operationoperationoperationoperationoperationoperationoperationoperationsizedsized LNG

operationoperation ofofofofofofoperationoperationoperationoperationLNG plants,

smallsmallsmallsmallsmallsmallsmallsmallplants, China

andandandandandandandandandandChina hasmediummedium

formedmediummediummediummediummediummediummedium-formedformed a

sizedsizedsizedsizedsizedsized LNGLNGLNGLNG-sizedsizedsizedsizedsizedsizedsizedsized-aa number

LNGLNGLNGLNGLNGLNGnumbernumber of

plants,plants,plants,plants,plants,plants,plants,plants,plants,plants,ofof LNG

ChinaChinaChinaChinaChinaChinaChinaChinaChina hashashashashashasplants,plants,plants,plants,plants,LNGLNG liquefactionformedformedformedformedformed aaaaaa numbernumbernumbernumbernumbernumbernumbernumber

technologies,

8/23

REFRIGERATIONEQUIPMENT

ELECTRICAL INSTALLATION

CONTROLSYSTEMs

LOADING SYSTEM OTHERS

HV MotorInverter

DCSFGSSIS

Skid-mounted LNG loading system

Propylene compressorEthylene compressor

Methane Gas CompressorBOG Compressor

Regeneration compressorEvaporatorCool Box

Heat conduction oil furnaceSwitching valve of molecular

sieve Amine circulation pumps


All listed equipment are able to substitute the import products

Import Substitution:

9/23

0PropyleneEEthylenethylene

Methane Gas Methane Gas Methane Gas thylene

Methane Gas thylene

CompressorMethane Gas CompressorMethane Gas

REFRIGERATIONEQUIPMENT

PropylenePropylene

01

All listed equipment are able to substitute the import products All listed equipment are able to substitute the import products

0HV MotorInverter

compressor

REFRIGERATION ELECTRICAL INSTALLATION

compressor

02


0DCSFGS

INSTALLATIONCONTROLSYSTEMs

DCS

03


0Skid-mounted LNG

loading system

LOADING SYSTEM

04


0Switching valve of molecular

OTHERS

Heat conduction oil furnace

05

CNPC-DMR, independently designed by CNPC, has strong adaptability to the environment and feed gasconditions. In order to keep the structure compact and reduce the range of pressure drop, the projectequips with plate & fin type cold box as the main heat exchanger. The technology has been successfullyapplied to Ansai LNG plant (0.5 Mtpa) and Taian LNG plant (0.6Mtpa), which were put into operation in2012 and 2014 respectively.


ANSAI Plant TAIAN LNG TAIAN LNG Plant

2. Dual Mixed Refrigerant Liquefaction Cycle (CNPC-DMR)CNPC-DMR,conditions

2. Dual Mixed Refrigerant Liquefaction Cycle (CNPCCNPC, has strong

compact and

Industrial Status Quo: LNG Plants in ChinaIndustrial Status Quo: LNG Plants in China

ANSAI PlantANSAI Plant

2. Dual Mixed Refrigerant Liquefaction Cycle (CNPCDMR, independently designed by CNPC,

. In order to keep the structure

Industrial Status Quo: LNG Plants in ChinaIndustrial Status Quo: LNG Plants in China

2. Dual Mixed Refrigerant Liquefaction Cycle (CNPC

Import Substitution

10/23

MAIN ATTRIBUTES OF LIQUEFACTION INDUSTRY IN CHINA

MAIN MAIN ATTRIBUTES ATTRIBUTES OF LIQUEFACTION INDUSTRY IN CHINA

02/

11/23

Main Attributes of Liquefaction Industry in China

Over 20 Provinces.Easily access to upstream resources and downstream local market.

Widely Distributed

Capacity: mainly in the range of 0.1 – 0.5 Mtpa;Low requirements for initial investments, prompt response to market;A lot of plants have been invested by private companies.Various resources: Coalbed methane, associated gas, shale gas, pipeline gas

Size are mainly small

Gradually replace import equipment and technologies with optimized domesticsubstitutions, by taking advantage of vast production experience and practicalcondition, such as N2 expansion, N2-CH4 expansion, SMRC, C3/MRC, DMR.

Localization of Liquefaction Technologies

12/23

Main Attributes of Liquefaction Industry in China

For small LNG plants with capacity of 5,000-30,000 Nm3/day, a skid-mounted integrated solution is popularly used. Advantages: low investment;less land required; easy commissioning and maintenance; Suitable forenergy supply in remote area; reusable.

Skid-Mounted

Meet the different needs of various end users without accessing to thepipeline, such as remote communities, vehicles & boats, and distributedenergy. (consumption volume as vehicles’& boats’ fuel was 10 bcm in 2017)

Meet different needs of various end users

As an efficient alternate of peak-shaving and emergency supply tocity gas.

Alternative storage supply to city gas

13/23

COMPARATIVE ANALYSIS:TECHNICAL & ECONOMIC SPECS OF CHINA AND WORLD LNG PLANTS

COMPARATIVE COMPARATIVE ANALYSIS:ANALYSIS:TECHNICAL & ECONOMIC TECHNICAL & ECONOMIC

03/

14/23

Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of Comparative Analysis: Technical & Economic Specs of China and World LNG Plants

Investment Scale of World LNG Plantsof World LNG PlantsSource: IHS Markit

15/23

LNG LNG PLANT

CAPACITCAPACITY

CAPACITCAPACITY Y Mtpa

INVESTMEINVESTMENT $/t

OPERATIOPERATION

RESOURCRESOURCES

Jincheng 0.29 418 2016 PNGBazhongTongkai 0.34 341 2015 SG

Huanggang 1.2 445 2014 PNG

Tangshan TangSteel 0.12 475 2014 COG

Ansai 0.5 346 2012 PNGGuang’An 0.23 352 2012 PNG

Baotou 0.39 242 2010 PNGHuixin 0.2 304 2010 PNG

Average investment of China's small and medium sized LNG plants in 2010-2016: US$365/t.

• The investment scale of large LNG plants isincreasing gradually. From 2009 to 2017,the unit investment cost is between

tobetween $

20172017$5002017,500-

$the unitthe$1500

unit1500/t

investmentinvestmentunit1500/t. The average investment of China's

small and medium sized LNG plants in2010-2016 is

mediumisis $mediummedium

$$365medium

365365/t.

Investment Scale of China’s LNG Plants : $240-$500/tpa

0.290.29JinchengJincheng

0.34Bazhong

0.12Tangshan TangSteelTangSteel

0.23Guang’An

0.39

Brownfield

Greenfield

Floating

OPERATIINVESTMECAPACITCAPACIT


LNG PLANT CAPACITY Mtpa

Power Consumption

Kwh/t

ProcessingTechnology Remark

Yamal 11.00 258 API C3MR

LNG Canada 14.00 243 SHELL DMR Feasibility Study

Huanggang 1.20 324 CNPC Cascade

Taian 0.60 358 CNPC DMRGuang’An 0.25 443 B&V PRICO

Qinshui 0.50 376 LINDELIMUM

Power Consumption of China and World LNG plants

Currency: 1 USD = 6.9 CNY

LNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG CanadaLNG Canada

Guang’An

Huanggang

USD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNYUSD = 6.9 CNY

16/23

0.65

1.33 1.441.58

1.211.42

1.29

0

0.5

1

1.5

2

Comparison of Operation Costs Between World and China LNG Plants

Sabine Pass Gorgon Wheatstone Yamal Huanggang Ansai Guang’an

1MMBtu ≈ 28Nm3 NG 1 USD = 6.9 CNYSource: The Oxford Institute for Energy Study

Huanggang Guang’an


Uni

t: $/

MM

btu

17/23

0.65

1.291.42

1.21

1.58

Study 17/23

ANTICIPATINGTRENDOF THE NATURAL GAS LIQUEFACTION INDUSTRY

ANTICIPATANTICIPATINGINGANTICIPATTRENDTRENDOF THE NATURAL GAS OF THE NATURAL GAS

04/

18/23

1. Scale and liquefaction technology of new LNG plants are more adaptable to market demand

• The world's LNG liquefaction capacity hasexperienced the path from a small-to-large andeventually returned to the level that is moreadaptable to market. In order to meet the needsof various markets, while large-scale LNGproduction lines are developing rapidly, smallLNGs will receive the same attention andaccelerate development.

Number of trains Commissioned vs Average Train Capacity 1964-2023

Anticipating Trend of Natural Gas Liquefaction Anticipating Trend of Natural Gas Liquefaction Technology

Source: IHS Markit 19/23


1. Scale and liquefaction technology of new LNG plants aremore adaptable to market demand

20/23

The larger plant with a risk ofhigher loss of production in theevent of a shut down when marketchanges.

02.Lower Risks

With the intent of reducingconstruction costs through smallertrains and/or a modular design.

01.Lower Cost

Smaller trains can reduce theamount of volumes that need to becontracted prior to reaching an FID.

03.Easier to Reach FID

Overall, the LNGplant scale iseventually dictated bymarket demand, localstrength oftechnology andequipment, and siteconditions.

2. Reducing energy consumption and pollution emissions

• It is well known that natural gas liquefaction is a high-energy production process. Therefore, only by improving LNG production efficiency and reducing energy consumption and emissions in the production process can LNG continue to strengthen its vitality in the world energy field.

• How to reduce the impact of the LNG liquefaction project on the environment during the construction process and related equipment in the manufacturing process is also a critical point to be concerned by practitioners.


21/23

CNPC Improved Cascade Cycle

BreakthroughBreakthrough: BreakthroughBreakthroughSingle train Single train Capacity: Single train Capacity: Capacity: 3.5 million tons/yearCapacity: Capacity: 3.5 million tons/year3.5 million tons/year(design power consumption (design power consumption 306kwh/t)

Import Substitution Equipment:

Import Substitution Equipment: Centrifugal compressors of Centrifugal compressors of

Propylene , Ethylene, & Propylene , Ethylene, & Methane

Methane Large heat exchangers

CNPCCNPC-CNPC-DMRBreakthroughBreakthrough:BreakthroughBreakthrough:

Single train 1. Capacity1. Capacity:

Single train Single train Single train 1. Capacity: 2.6 million tons/year1. Capacity1. Capacity1. Capacity: 2.6 million tons/year2.6 million tons/year2.6 million tons/year2.6 million tons/year

(design power consumption (design power consumption (design power consumption 290kwh/t

(design power consumption (design power consumption 290kwh/t)

2. Capacity2. Capacity: 290kwh/t290kwh/t290kwh/t290kwh/t))

2. Capacity: 5.5 million tons/year2. Capacity2. Capacity2. Capacity: 5.5 million tons/year5.5 million tons/year5.5 million tons/year5.5 million tons/year5.5 million tons/year(design power consumption (design power consumption (design power consumption

260kwh/t(design power consumption (design power consumption

260kwh/t260kwh/t)Import Import Substitution Import Substitution Substitution

Equipment:Equipment:Equipment:Equipment:Mixed Refrigerant Compressor

Equipment:Equipment:Mixed Refrigerant Compressor, Mixed Refrigerant Compressor

Cold Box Mixed Refrigerant Compressor

Cold Box (Mixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant Compressor

Cold Box (plateMixed Refrigerant CompressorMixed Refrigerant Compressor

plate-Mixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant Compressor

plate-fin), Mixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant CompressorMixed Refrigerant Compressor, Mixed Refrigerant CompressorMixed Refrigerant Compressor

fin), LNG Cold Box Cold Box Immersed

plateplateplateplateplateplateplateplateCold Box Cold Box Cold Box Cold Box Cold Box Cold Box ((Immersed Immersed Pump,

fin), fin), fin), fin), plateplateplateplate-fin), fin), fin), fin), Pump, Pump, Pump, Hv

LNG LNG LNG LNG LNG fin), fin), fin), fin), HvHv motor

The independent R&D andimplementation of smalland medium scale LNGplants have also stronglypromoted the developmentof China's larger LNGliquefaction technology andequipment.The independentlydeveloped CNPC-Improved Cascade Cycleand DMR processes havestrong adaptability to theenvironment and feed gasconditions. Moreover, thereis no restriction on theproprietary equipmentbundled by the patentvendor, the whole processis open to all equipmentmanufacturers.


3. China's LNG industry is ready for Large - scale production

CNPC Improved Cascade Cycle CNPCCNPCCNPC DMRDMRDMR

22/23


4. CHINA WILL CONTINUE ACTIVELY PARTICIPATE IN THE WORLD LNG INDUSTRY

23/23

Vendors EquipmentCold Box (plate-fin heat exchanger)

Refrigerant CompressorBOG Compressor

Hv MotorDCS

LNG Immersed Pump

• Chinese engineering companies and manufacturers are well prepared to participate in the construction of the world's LNG plants

THANK THANK YOU !

A LOOK AT THE DEVELOPMENT TREND OF LIQUEFACTION TECHNOLOGY … · a look at the development trend...

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Transcript of A LOOK AT THE DEVELOPMENT TREND OF LIQUEFACTION TECHNOLOGY … · a look at the development trend...