- About PO&G

- History

- About LNG

- Business Divisions

- Corporate ID Manual

 

An Introduction to LNG

What is LNG ?

Liquefied Natural Gas (LNG) is natural gas treated and cooled to -161oC and stored at pressure 1 Bar.

LNG is a liquid form of the natural gas. As liquefied gas, the volume of the natural gas is very much reduced and the volume reduction of the natural gas vapor to liquid is 600 : 1
Typical LNG composition is:

 
low
high
Methane
C1
80%
99%
Ethane
C2
1%
17%
Propane
C3
0.1%
5%
Butane
C4
0.1%
2%
Pentane and heavier
C5+
< 1%
Nitrogen
N2
0
1%

LNG is odorless, colorless, non-corrosive, and non-toxic. However , as with any gaseous material besides air and oxygen, the natural gas vaporized from LNG can cause asphyxiation in an unventilated confinement.

 

Comparison of LNG and Other Fuels:

Hazard

LNG

LPG

Gasoline

Fuel Oil

Toxic

No

No

Yes

Yes

Carcinogenic

No

No

Yes

Yes

Flammable

Yes

Yes

Yes

Yes

Form Vapor Clouds

Under special condition

Yes

Yes

No

Asphyxiant

Yes, without adequate O2

Yes, same as LNG

No

No

Other health hazards

No

No

Eye irritant, Narcosis, Nausea, others

Same as gasoline

Flash Point, oC

-188

-104

-46

60

Boiling Point, oC

-161

-42

32

204

Flammable limits in Air %

5~15

2.1~9.5

1.3~6

N/A

 

Why LNG ?

Natural gas is a clean and safe energy that is far less dangerous and volatile than gasoline, propane or butane, all of which are commonly used fuels. People use natural gas in their homes for cooking and heating (city gas). Natural gas is also used as fuel for generating electricity.


Optional usage of natural gas are:

· to develop local industry (fertilizers, aluminum, chemicals, etc.)
· Recycled to produce liquids
· Injected in nearby oil field to enhance oil production
· Convert the natural gas to liquids (oil products or methanol)
· Install pipelines to deliver the natural gas to nearby market
· Convert the natural gas to LNG for transfer to markets beyond pipeline limits.

During the cooling process to LNG, natural gas is also purified, removing compounds such as mercury, sulfur compounds, moisture, and heavy hydrocarbons, to enhance its clean-burning properties. As such, LNG is known as an environmentally friendly energy source.

 

The Development of The LNG Industry

Early 20th Century
1920/30s
1940

1959
1964

1969

1970s

1980s

2000
2000

Liquefaction of gas to extract helium
LNG used to store natural gas in USA
First (and only) major accident in Cleveland, USA. 140 people killed
Voyage of Methane Pioneer from USA Gulf to UK
Arzew plant in Algeria commissioned, first commercial LNG deliveries to UK
First deliveries of LNG to Japanese market (from Kenai, Alaska)
Start up of Libya, Brunei, Indonesia (Arun/Bontang), Abudhabi projects
Start up of Qatargas, Trinidad, Nigeria and RasGas projects
Start up of Oman project
Annual LNG trade reaches 100 mtp

 

LNG production by country in 2000

· Indonesia 26%
· Malaysia 15%
· Brunei 6%
· Australia 7%
· Alaska 1%
· Qatar 10%
· Oman 3%
· UAE 5%
· Algeria 19%
· Libya 1%
· Trinidad 3%
· Nigeria 4%

Total 100%

 



Today, natural gas accounts for 24.7% of the world’s energy requirements while LNG only accounts for 5.7% of this supply. This translates to LNG contributing only 1.5% of total world energy market, hence there is huge room for growth.

The use of natural gas is experiencing a major expansion world wide. The use of clear burning natural gas as fuels to fire CCGT power plants is becoming widely accepted and encouraged world wide including China.

The Chinese Government plans to increase natural gas consumption from its current 2% level to 8% by 2010. This translates into an increase in gas requirements from 20 million tons in 2000 to about 69 million tons by 2010.