Lng Gas Station Project

7/29/2019 Lng Gas Station Project

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P R E S E N T E D B Y:M I R Z A M O H T A S H I M B A I G

M A A Z S H A H I D

FA Z A L S H A H I D

LNG GAS STATION PROJECT

PROJECT APPRAISAL


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PROJECT OVERVIEW

Limited recourses and rising oil fuel consumption has forced the natural policy to import the recourses

from international market.

Natural gas has emerged as the largest source in the energy sector of Pakistan sharing nearly 50 percent

of total primary energy consumption.

The actual demand and supply gap was 650 mmscfd in 2007 which is increasing every year to reach3,709 mmscfd by the year 2020.

Pakistan's policy in the energy sector is focusing on exploring all available options of cheap, Liquefied

Natural Gas (LNG) considered as a viable option to meet the projected demand in the energy sector.

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The worldwide LNG trade has increased steadily since the industry began. This trend is expected to

continue as natural gas becomes the fuel of choice for electric power providers and as developing

countries increase their energy demands.

The project under consideration is to build LNG receiving terminal where liquefied natural gas from

special ships will be stored in special storage tanks, vaporizes the LNG, and then delivers the natural gas

into a distribution pipeline.

The receiving terminal will be designed to deliver a specified gas rate into a distribution pipeline and to

maintain a reserve capacity of LNG.

The amount of reserve capacity depends upon expected shipping delays, seasonal variations of supply

and consumption, and strategic reserve requirements.

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PROCESS FLOW DIAGRAM

Special Ships

would unload atFSRU

FRSU (floating

storage and re-

gasification

unit)PROJECT APPRAISAL


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LNG FUNDAMENTALS

LNG (Liquefied Natural Gas) is natural gas that has been extracted from subsurface reserves and cooled.

To meet growing demand and diversify our energy supply, Pakistan needs to bring in natural gas fromoverseas in the form of liquefied natural gas (LNG).

LNG is simply natural gas in its liquid form. It is the same natural gas which more than 5 million Pakistanihomeowners use every day.

Natural gas is converted to LNG by cooling it to -260 F, at which point it becomes a liquid.

This process reduces its volume by a factor of more than 600 similar to reducing the volume of abeach ball to the volume of a ping-pong ball.

LNG is an odorless, non-toxic and non-corrosive liquid, and if spilled, LNG would not result in a slick.

Absent an ignition source, LNG evaporates quickly and disperses, leaving no residue.

There is no environmental cleanup needed for LNG spills on water or land.

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ADVANTAGES OF LNG

Favourable economics over diesel and other transportation fuels.

A 100% displacement of petroleum fuels.

The ability to produce renewable fuels from landfill gas, waste water, dairies, and other sources and,

A path to hydrogen fuel.

Favourable economics over petroleum and other transportation fuels.

LNG vehicle fuel will offer the lowest cost fuel option for heavy-duty transportation in the immediate

region.

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MARKET AND DEMAND ANALYSIS

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NATURAL GAS CONSUMPTION

Household

13.98%

commercial

2.37%

cement

1.23%

fertilizer

16.19%

power

40.23%

Industrial

22.81%

Transport

3.19%

Household

commercial

cement

fertilizer

power

Industrial

Transport

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Household

18.72%

commercial,

2.91%

cement

0.08%

fertilizer

18.40%

power

27.20%

Industrial

23.57%

Transport

9.12%Household

commercial

cement

fertilizer

power

Industrial

Transport

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The government formulated LNG policy back in 2006. SSGC had the mandate to launch the Pakistan

Mashal LNG Project and to act as a project vehicle company for implementation ofthe project through

the private sector in two phases between the years 2011 to 2014. At present, Mashal gas project has

been stopped due to mishandling.

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PAKISTAN GAS SECTOR

Pakistan is gifted with extensive reserves of natural gas, which is circulated throughout the country by two

vertical integrated gas transmission and distribution companies which are Sui Southern Gas Company

Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL).

Sui Southern Gas Company Limited (SSGCL)

Sui Northern Gas Pipeline Limited (SNGPL)

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SUI SOUTHERN GAS COMPANY LIMITED (SSGCL)

SSGCL is engaged in the business of transmission and distribution of natural gas in the south of the

county.

SSGCL transmission system extends from Sui in Balochistan to Karachi in Sindh comprising over 2,780

km of high pressure pipeline ranging from 12 - 24" in diameter.

An average of about 357,129 million cubic feet (MMCFD) gas was sold in the year to over 1.9 millionindustrial, commercial and domestic consumers in these regions through a distribution network of over

29,832 Km.

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SUI NORTHERN GAS PIPELINE LIMITED (SNGPL)

SNGPL is the largest integrated gas Company in the country, engaged in the business of transmissionand distribution of natural gas.

SNGPL was incorporated as a private company in June 1963 and was converted into a public limited

company in January 1964 under the Companies Act 1913.

The object of transmission and distribution of natural gas in Punjab and North West Frontier Province.SNGPL transmission system extends from Sui in Balochistan to Peshawar in North West Frontier

Province (NWFP) comprising over 5,759.19 Km of Transmission System (Main lines & Loop lines).

The distribution activities covering 1,224 main towns along with adjoining villages in Punjab & NWFP

are organized through 8 regional offices. Distribution system consists of 59,951 km of pipeline.

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INTERNATIONAL GAS PIPELINE PROJECTS

The main gas pipe line projects under consideration of the Government of Pakistan are as

follow:-

Turkmenistan Afghanistan Pakistan Gas Pipeline

Iran Pakistan Gas Pipeline

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DEMAND/SUPPLY POSITION

YEAR DEMAND SUPPLY GAP

IN MTOE

2005 54 40 14

2010 72 50 22

2015 98 55 432020 131 60 71

2025 170 71 99

MTOE (Million

Tonnes Oil

Equivalent)

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SUPPLY SOURCE OF LNG

Worldwide, there are 26 existing export, or liquefaction, marine terminals, located on or off shore, in 15countries. In contrast, there are 60 existing import, or re-gasification, marine terminals, on or off shore,

spread across 18 different countries.

In addition to these existing terminals, there are approximately 65 liquefaction marine terminal projects

and approximately 181 re-gasification terminal projects that have been either proposed or are under

construction all around the world.

Some countries meeting this criterion include Algeria, Australia, Brunei (Darussalam),EquatorialGuinea,

Egypt, Indonesia, Libya, Malaysia, Nigeria, Norway, Oman, (Saltanat Uman) Qatar, Trinidad and Tobago,

United Arab Emirates (Al Imarat al-Arabiyah Al-Muttahidah) and United States of America.

However, the cheapest source of importing LNG for Pakistan is Qatar, UAE and Oman, due to low

shipping cost/ transportation cost.

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CONSUMPTION/DEMAND AND PRODUCTION

Worldwide, total natural gas consumption increases by an average of 1.6 percent per year, it was 104trillion cubic feet in 2006 and will reach 153 trillion cubic feet in 2030.

It is assumed that the world oil prices are expected to reach previous high level after 2013.

Natural gas produces less carbon dioxide when it is burned than coal or petroleum, governments

implementing national or regional plans to reduce greenhouse gas emissions may encourage its use todisplace other fossil fuels.

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GLOBAL RESERVES

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LNG MARKET

LNG has been the alternative fuel of choice for the heavy-duty market in the United States.

LNG after re- gasification can also be pumped through the pipeline network and be supplied to

industries using natural gas as fuel like Power stations.

Around the world, the Compressed Natural Gas (CNG) vehicle market is developing at exponential rates.

The opportunity to utilize LNG as a clean and low-cost vehicle fuel in heavy-duty vehicle applications is

tremendous.

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BENEFITS OF LNG

It has the lowest environmental emissions of all fossil fuels, is competitively priced, plentiful and offersgeographical diversity of supply.

Natural gas is a much cleaner source of energy than oil or coal. Coal and oil have a much more complex

molecular structure and produces a much greater emission of harmful substances.

The high emissions of nitrogen and sulphur oxides from other fossil fuels, and very fine dust particles inparticular, are harmful to people and the environment.

All around the world, natural gas is increasingly being used to generate electricity, in order to reduce the

emission of harmful gases (such as CO2) and to improve air quality.

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TECHNICAL ANALYSIS

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PROJECT DETAIL

The proposed project would have a daily operation of 400 mmcfd. In terms of tonnage of LNG itwould be equal to 3 million tons per annum.

The project entail setting up the wharf of a LNG storage and re-gasification vessel at around 3 k.m

from the terminal with a capacity to store 3.6 billion cubic feet of LNG.

The unloading would be according to the contracted amount of gas. This option has been chosen

because it is the cheapest and quickest to implement.

The LNG import from India would involve setting up pipeline from Bhatinda to Pakistani border.

Risk involve political, environmental and time parameters.

SSGCs already has a network of pipeline consisting of large diameter of 30 and 42 inch pipes lines

in Port Qasim area and it would save the cost of laying pipeline at a wider area (a small patch

would connect the RLNG pipes to SSGC network).

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There are industrial zone near port qasim which could also be provided with gas instantly withouthaving to go through the national grid. There are several fertilizer and sugar industries along with the

steel mill.

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PROJECT CAPACITY

The capacity has been assessed at 400 mmscf of LNG per day re-gasified with peak capacity of 440mmscf of LNG per day. The minimum send-out of the Re-gasification Equipment will be 10,000 m3 per

hour with a minimum temperature of 5 C at 90 barg. FSRU storage capacity will be 166,000 m3 and an

LNG Ship up to 200,000 m3 will also be permanently moored alongside the jetty.

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COMPONENTS OF PROJECT

The marine terminal facilities, the infrastructure required for receiving LNG cargo and storage vessels atthe jetty terminal.

The re-gasification process unit with a capacity; up to 280 mmscfd of natural gas (average daily

throughput) to the national grid.

PROJECT APPRAISAL

30" x 3 km submerged natural gas pipeline30" x 3 km submerged natural gas pipeline


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THE MARINE TERMINAL

Marine structures will comprise of the following:

One LNG FSRU berthing jetty. LNG carrier vessel will berth alongside FSRU in double breasting position.

LNG Carrier (LNGC) and FSRU will be chartered from international sources;

Fixed platform for miscellaneous utilities such as fire fighting, emergency power generations and R-LNG

pipeline will be constructed.

30" x 3 km submerged natural gas pipeline

30" x 3 km submerged natural gas pipeline30" x 3 km submerged natural gas pipeline

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PROCESS CONTROL SYSTEM

It will comprise of the following:

Pressure Control Station

Export Gas Heating

Metering Station

Vapour Compressor for boil off gas

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DREGING

Approach channel and basin will be dredged to [-12.5m] CD with the vessel berth pockets at [-15.0m]CD. The dredging will include about 200m jetty safety distance, about 450m diameter turning circle, and

about 800m approach channel linking the main navigational channel with the jetty.

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DESIGN CONSIDERATION

LNG Unloading rate 2*5,000 m3 per Hour

LNG carrier capacity 166,000 m3

LNG FSRU capacity 200,000 m3

Distance from Facility to Shore 3 Km

Facility to Shore Pipeline Nominal Diameter 30"

Gas send-out rate, Minimum Approx 50 MMscfd

Gas send-out rate, Maximum 300 MMscfd

Gas send-Out pressure, Maximum 1440 psig

Gas send-Out pressure, Minimum 400 psig

Gas send-Out Temperature, Minimum 35 0F

Maximum wind Speed 112 Miles per hour

On-Site Utility Power Self-Generated

Electrical Frequency to be generated 50 HZ

Fire Safety System SeawaterPROJECT APPRAISAL


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COMPOSITION

LNG Supply Composition

Component Light LNG Heavy LNG

C1 96.13% 89.18%

C2 3.40% 7.07%

C3 0.39% 2.50%

i-C4 0.04% 8.46%

n-C4 0.03% 0.69%

i-C5 0.00% 0.01%

n-C5 0.00% 0.00%

n-C6 0.00% 0.00%

N2 0.01% 0.09%

CO2 0.00% 0.00%

H2S


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LNG STORAGE AND RE-GAS FACILITY

We will sign a MOU with owners and operators of LNG carriers for providing Floating Storage & Re-gasification Unit (FSRU) of 200,000 M3 Vessel. The Re-gas facility of 400 MMSCFD will be provided on

ship and standby re-gas facility available on board. The FSRU will also be fitted with loading arms for

ship to ship transfer of LNG.

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FLOATING STORAGE & RE-GASIFICATION UNIT

(FSRU)

Floating Storage & Re-gasification Unit (FSRUs) is based on the conversion of an existing LNG carrier intoa floating terminal that can be situated offshore or at a new or purpose-built jetty/pier.

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PROSPECTIVE CLIENTELE

S. NO Potential Customers MMCFD

1 PPR Power Plant in Karachi 40

2 Other Potential IPP`s 200

3 SNGPL requirement 200

4 Rental Power Plant through SSGC/SNGPL 345 Other Industries etc 200

Total Potential RLNG Volume 974

in 2012-13 Scenario

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TECHNICAL CODES AND STANDARS

The project will be located at Port Qasim Authority Karachi, Sindh.

The construction, designing and operation of LNG terminal will be according to the internationally

recognized and proven codes, standards and guidelines for land based and offshore LNG installations.

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PROJECT IMPLEMENTATION

The are three (3) phases:

PHASE I: LAYOUT CONFIRMATION

PHASE II: DESIGN PHASE

PHASE III: CONSTRUCTION PHASE

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PHASE I

This phase consists of activities like mobilisation of technical consultants, data collection and review,preliminary numerical modelling.

Shipping study, simulation & confirmation, QRA initiation & HAZID workshop and layout confirmation.

QRA initiation & HAZID workshop will be performed simultaneously and will be performed in 11 weeks.

Activities as data collection & review and finalisation of layout conformation will take 4 weeks each.

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PHASE II

The phase consists of three sub phases namely preliminary design, detailed design and tender witheach having different activities.

Preliminary design phase will take about 18 weeks with the activities such as Design basic

documentation development.

Detailed design phase will be performed within 22 weeks and the activities that will be completed inthat are Design basic documentation development.

The activities that will take significant time are Procurement specification & tendering and Drawing &

specification.

These will take about 17 weeks and will be performed simultaneously.

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PHASE III

This is the final phase and will take about 85 weeks to complete.

The implementation activity will take about 65 weeks to complete.

The total time for the project will be about 179 weeks including other activities.

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COMMERCIAL VIABILITY

The commercial feasibility of the LNG Project is very strong as the demand of the natural gas is swellingyear by year due to installation of new power plants.

Government of Pakistan is also giving its first priority to reduce reliance on the oil based products like

furnace oil, Diesel and Petrol etc.

GoP has already directed their respective local governments to introduce CNG transport buses whichprovinces already initiated.

It helps to cater the growing demand of the gas which ultimately reduces the increasing price shocks to

the end users as 5 million Pakistani families rely on natural gas to fuel their homes and household

budgets take a direct hit when prices are high.

PROJECT APPRAISAL

Lng Gas Station Project

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