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Slide Set 3 - Role of Lng, Gtl, Cng

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     © 2005 by Institute for Energy, Law & Enterprise, University of Houston Law Center. A rig!ts reserve".

    PMRE/BUET & UH IELE WORKSHOP 

    The Role of LNG, GTL, CNG

    Dhaka, Banglae!h" #an$a% '()*, *++

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    Ho- M$.h Na$%al Ga! I! O$ The%e0 P%o1e na$%al ga! %e!e%1e! a en *++2, 34+++ .f" 

    $% tatisti'a (eview of )or" Energy 200*

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    Mone565ng Glo7al Na$%alGa! Re!o$%.e!

    14% ~ 15 tcf, doesnot get to market

    WORLD PRO8EDRESER8ES *++*9

    4,+++ TC:

    NORTH ;MERIC;RESER8ES

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    Mone565ng Glo7al Na$%al Ga!Re!o$%.e! Ke D%51e%!

    • Abundance of proved Natural Gas

    • Huge stranded reserves exist –countries and companies want to

    monetize these reserves

    • North America and Europe – at ordeclining production

    • NG is becoming a cost e!ectivesolution

    5 5 Gl 7 l l G

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    Mone565ng Glo7al Na$%al Ga!Re!o$%.e!

    Wha 5! CNG, LNG, NGL!, LPG, and GTL?

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    Mone565ng Glo7al Na$%al Ga!Re!o$%.e!

     Ga!(o(L5>$5! ?GTL@

    Source: Deshpande, A & Economides, M.J. – University of Houston

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    CoA%e!!e Na$%al Ga! ?CNG@

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    Na$%al Ga! CoAo!55on

    CoAonen

    T5.al

    ?Mole

    Pe%.en@

    Range

    ?Mole

    Pe%.en@H%o.a%7on

    !"ethane #$%& '()** +,)*- – '+)((

    Ethane #$(& ,),. /)0( – *).-

    1ropane #$,& %)0% /)%+ – -)*-

    2so34utane #i3$-& /)-% /)/0 – %)%/

    Normal 4utane #n3$-& /)-* /)/. – %).,2so31entane #i3$0& /)%' /)/, – /)0/

    Normal 1entane #n3$0& /)%, /)// – /)-(

    Hexane #$.& /)(* /)/' – /)*+

    Ine%! Nitrogen #N(& /),/ /)%( – /)'%

    Helium #He& 5race /)// 3 /)/(

    IA$%55e! $arbon 6ioxide #$7(& /)0' /)%, 3 %)+.

    H8drogen 9ul:de #H(9& 5race /)// 3 /)%/

    7x8gen #7(& 5race /)//– ,)//

    ;ater #H(7& 5race /)// 3 /)/%

    Source: Cheniere

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      Advantages

    • 9implicit8

    • 2nexpensive onshore facilities

    • $an start with ver8 modest transportingneeds

    • Energ8 e

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    S.oe of he CNGTe.hnolog

    • 1ro>ects using the $NG technolog8 can besuccessful technicall8 and commerciall8

    • $NG is capable of meeting small mar=et

    demands and monetizing small suppl8 areas• "a>orit8 of the investment involved with

    shipping needs? thus? ma=ing the assetsmovable and used in other areas of interests

    • $NG can suppl8 gas for distances of (0//miles cheaper than NG

    Source: Deshpande, A & Economides, M.J. – University of Houston

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    7pportunities for $NG "arine 5ransport 

       @   A   5   E ?  m  m  s  c   f   d

    %?///

    0//

    %?0//

       @   A   5   E ?  m  m  s  c   f   d

    %?///

    0//

    %?0//

    P5Bel5ne! LNG

    H&%a/e!

    ,?///(?///%?////

     5ransport 6istance? nm

    ,?///(?///%?////

     5ransport 6istance? nm

    CNG

    ,?///(?///%?////

     5ransport 6istance? nm

    -?///,?///(?///%?////

     5ransport 6istance? nm

    -?///,?///(?///%?////

     5ransport 6istance? nm

    -?///

    8OTR;NSTM

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     5ransport $osts

    •9uppl8 "atched with6emand $enters

    •9maller 6emand$enters can beconverted to gas

     5ransport costs range from

    %)(03%)*0B""45C #%//3,// ""9$D&

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    CoA%e!!e Na$%al Ga!?CNG@

     5wo technologies for $NG transport  a) 5he $ran 9tennings approach

      b) 5he Enersea approach

    ExampleF $onsider the transportation of ,// ""scf ofgas as $NG– Csing the $ran 9tennings approach

    • Actual volume of $NGF %)*.x%/. ft, 

    – Csing the Enersea approach

    • Actual olume of $NGF %)(x%/. ft, 

    Source: Deshpande, A & Economides, M.J. – University of Houston

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    T%an!o%a5on of he ga!

     '/ of the investment involved is in shipping ofthe gas)

    oading and unloading is possible and eas8 withsmall facilities)

    Source: Deshpande, A & Economides, M.J. – University of Houston

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    $NG $argo $ontainment 98stem

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    CNG ;l5.a5on

    • Dor distances up to (0// miles? $NGappears more attractive than NG

    • "a>or advantage in terms of mar=etentr8

    • "uch less capital deplo8ed in countr8

    • Cp to ( 4cf on a ship

    • 2deal for limited suppl8? limited

    consuming mar=ets

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    Wha I! LNG0

    LNG is natural gas that has beencooled that it condenses to aliIuid

    •  5emperature 3(0.oD #3%.%o$&

    • Atmospheric pressure)

    • olume is reduced .// times

    •  5hus economical to transportlocall8 and between continents

    in speciall8 designed oceanvessels

    • iIuefaction technolog8 ma=esnatural gas available throughoutthe world

    Natural Gas

    LNG

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    Wha I! LNG0

    • NG is liIuid form of the naturalgas used for coo=ing? heatingand power generation)

    •  5he liIuefaction process removesalmost all JcontaminantsK

    • NG must meet higher and lowerlimits on energ8 content

    • NG composition has traditionall8been set b8 mar=ets in Lapan?9outh Morea? and 5aiwan

    • NG also is used in the C)9) as an

    alternative fuel for publictransportation s8stems)

    Tyical LNG !omosition

    "thers

    5%Methane

    95%

    #ource Methane $thane roane &utane Nitrogen

    'laska 99.72  0.06  0.0005  0.0005  0.20 

    'lgeria 86.98  9.35  2.33  0.63  0.71 

    &altimore Gas ( $lectric 93.32  4.65  0.84  0.18  1.01 

    New )ork !ity 98.00  1.40  0.40  0.10  0.10 

    #an *iego Gas ( $lectric 92.00  6.00  1.00  -  1.00 

    Source: i!uid Methane "ue# $haracteri%ation and Safety Assessment eport . Cryogenic Fuels. Inc. Reor!

    "o. CFI-1600# $ec. 1991

    LNG !"M%"#+T+"N Mole ercent-

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    5%

    15%

    1..%

    "/er0ichWill not burn

    2lamma3le

    Too Lean 0 Will not burnLower 2lamma3ility Limit L2L-

    er 2lamma3ility Limit 2L-

    5%

    15%

    1..%

    "/er0ichWill not burn

    2lamma3le

    Too Lean 0 Will not burnLower 2lamma3ility Limit L2L-

    er 2lamma3ility Limit 2L-

    2lamma3le ange for LNG Methane-

    LNG P%oe%5e!

    *ensity

    3.9g &'!er 8.3g()"* +lo'!s on ,'!er.

    2lamma3ility range5 15%.

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    CoAa%5!on ofP%oe%5e! of L5>$5:$el!

    LNG L5>$eePe%ole$AGa! ?LPG@

    Ga!ol5ne :$el O5l

     5oxic No No es es

    $arcinogenic No No es es

    Dlammable apor es es es esDorm apor $louds es es es No

    Asph8xiant es? but in a vapor cloud es? same As NG No No

    Extreme $old 5emperature es es? if refrigerated No No

    7ther health hazards None None E8e irritant?narcosis? nausea?others)

    9ame asgasoline

    Dlash point oD 3,/. 3%0. 30/ %-/

    4oiling point oD 3(0. 3-- '/ -//

    Dlammabilit8 @ange in air

    03%0 ()%3')0 %),3. NBA

    9tored 1ressure Atmospheric 1ressurized#atmospheric ifrefrigerated&

    Atmospheric Atmospheric

    4ehavior if spilled Evaporates? formingvisible JcloudsK)1ortions of cloud couldbe ammable orexplosive under certainconditions)

    Evaporates?forming vaporclouds which couldbe ammable orexplosive undercertain conditions)

    Evaporates?forms ammablepoolOenvironmentalclean upreIuired)

    9ame asgasoline

    9ourceF ewis? ;illiam ;)? ewis? Lames 1? 7uttrim? 1atricia A)? 15F L+ -a'iities /!e (ea (is ? Ai$hE "eeting? New 7rleans? April (//, as modi:ed b8 industr8sources)

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    Fuel Autoignition

    Temperature, oF

    LNG (primarily methane) 1004

    LPG 850-50!thanol "#

    $ethanol 8%"

    Ga&oline 45

    'ie&el Fuel Appro %00

    Source: New York Energy Planning Board, Report on issues regarding the existing New

    York Liqueied Natural !as "oratoriu#, No$e#%er &''(

    ;$o Ign55on TeAe%a$%e ofL5>$5 :$el!

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    Gene%al LNG P%o$.5on P%o.e!!

    HeaE.hange%!

    Ga!T%eaAenRef%5ge%anCoA%e!!5on

    LNGSh5!

    P5el5ne:ee Ga!

    (*' :

    LNG So%age

    F Penane! an hea15e%F Conen!ae!F IA$%55e!

    3Ca%7on D5o5e3Me%.$%3H%ogen S$le3Wae%3N5%ogen

    Heaeelle o-ae% o% a5%

    Source: Cheniere

    LNG Pl S5

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    4

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    B%5ef H5!o% of LNG

    EMERGENCE• )'

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    LNG 8S PIPELINE

    •  5he distance over whichnatural gas must betransported increases?usage of NG haseconomic advantages overusage of pipelines)

    • iIuef8ing natural gas andshipping it becomescheaper than transportingnatural gas in o!shorepipelines for distances ofmore than *// miles or in

    onshore pipelines fordistances greater than(?(// miles)

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    Wh LNG No-0G%o-5ng Glo7al LNG DeAan

    Source: BP Statistical Review of World Energy June 2003 

    Natural Gas Trade Mo/ement7..7

    A% er year growth 1

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    Glo7al LNG IAo%! 7 Ba!5n

    • 2n (//( there are -, terminalswith a capacit8 of over (+/

    million tonnes? (- of the terminals

    are in Lapan)

    • 2nter3regional NG trade is

    expected to increase six fold overthe next ,/ 8ears)

    • "ost of the increase in NG trade

    would be in the Atlantic basin?

    which will overta=e the paci:c

    basin in volume)• 2mporting countries will need to

    add almost ../ million tonnes of

    new regasi:cation capacit8)

    *lo'l )"* IR;RS

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    Glo7al LNG IAo%!

    Caan 7=

    +morting !ountry$;istinglanned

    Caan 7=Caan 74

    +morting !ountry$;istinglanned

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    Glo7al LNG Eo%!

    Source: () Statistics, ,+or#d Ener'y /nvestment 0ut#oo1, /EA, 2ov. --.

    There are currently 1B liDuefaction lants with A. trains in oeration worldwide

    0

    20

    40

    60

    80

    100

    120

    140

    160

    1970 1975 1980 1985 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

       &   i   l   l   i  o  n  c  u 8  m

    In=onesi' lgeri' 'l'ysi' >'!'r  

     us!r'li' runei :'n "igeri'

    ; rini='= ? o'go S )iy'

    Glo3al LNG $;orters

    2002

    +ndonesia

    7=%

    Malaysia

    14%

    Eatar 

    17%

    'ustralia

    A%

    &runei

    B%

    '$

    5%

    "ther 7A%

    'lgeria

    16%

    "man

    5%#'

    1%

    Nigeria

    5%Trinidad (

    To3ago

    4%Li3ya

    .%

    acific &asin 'tlantic &asin

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    LNG L5>$efa.5on :a.5l55e!The LNG 5n$!% .o$l 7e o5!e fo% %aAa5. g%o-h

    ,/

    • NG suppl8 growing

    • "ultiple NG suppl8proposals announced

    • ong term NG suppl8outloo= robust

    Glo3al LNG #uly

    our'e1 Ce"iga, +%C

    E5!5ng

    Une%Con!%$.5on

    P%oo!e

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    LNG L5>$efa.5on :a.5l55e!

    ore !/'n 60% o+ !/ee@ui!y is o,ne= ys!'!e co'niesA insoe c'ses in Boin!en!ures ,i!/ 'Bor

    oil 'n= g's ro=ucers

    1.4

    2.0

    2.0

    2.2

    2.6

    3.0

    3.0

    3.4

    3.4

    3.8

    4.4

    4.6

    4.74.7

    8.9

    9.1

    10.0

    17.0

    23.3

    . 5 1. 15 7. 75

    &F

    nocal

    Mitsui

    ico

    Nion "il !ororation N"!-

    &

    Nigeria National etroleum !omany

    "mani #tate

    &runei Go/ernment

    '3u *ha3i National "il !omany '*N"!-

    Total

    Caan +ndonesia LNG !omany C+L!"-

    $;;onmo3ilMitsi3ushi

    Eatar etroleum

    #hell

    etronas

    ertamina

    #onatract

    mta

     #tate"wned

    B1%

    "il

    !omanies7=%

    "thers

    1B%

    LiDuefaction !aacity

    Source EIA

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    • Almost all existing liIuefaction pro>ects haveannounced expansionsF 5rinidad? Nigeria? Patar?7man? "ala8sia? 4runei? 2ndonesia? Australia)

    Expect most of these to be built) ;ould raiseworldwide total capacit8 b8 over -/ toapproximatel8 %+- million tons per annum)

    • Additional countries have announced planned and

    prospective green:eld liIuefaction plants #as ofApril (//%&F Angola? Australia? Eg8pt? 2ndonesia?2ran? Nigeria? Norwa8? 1apua New Guinea? @ussia?C)9) #North 9lope&? enezuela? emen)

    NG 9uppl8F 9ummar8

    Wo%l LNG IAo%! an

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    Wo%l LNG IAo%! anEo%

    *++2 ?B5ll5on C$75. :ee@ 

    Source: BP Statistical Review World Energy !!"

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    'tlantic &asin LNG #uly and *emand

    0

    1#000

    2#000

    3#000

    4#000

    5#000

    6#000

    7#000

    8#000

    Suly 2001( $e'n= 2001( Suly 2010( $e'n= 2010(

       &  c   f   9  y  r

    Middle $ast

    eneHuela

    'ngola

    $gyt

    Trinidad

    Nigeria

    'lgeria

    New Markets

    $uroe

    nited #tates

    Source: Pace #lobal Energy Services

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    LNG costs aredeclining.Natural gas can be

    economicall8produced anddelivered to the C)9)as NG in a pricerange of about *"+

    ( 2"+/""4tudepending largel8 onshipping cost)

     

    LNG !"#T# '$ *$!L+N+NG *oes not include feedstock rices 

    2.5 

    1.8 

    0.5 

    0.1 0.1

     

    0.5 

    1.5 

    2.5 

    1

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    LNG P%oe. Co!! W5ll Con5n$eD%o5ng

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    T5.al LNG 8al$e Cha5n

    EPLOR;TION&

    PRODUCTION

    LIJUE:;CTION

    SHIPPINGREG;SI:IC;TIO

    N& STOR;GE

    )"+ ( *"75ll5on

    )" *"+75ll5on

    +" ( *"275ll5on

    +" ( )"+ 75ll5on

    +"()"+/MMB$+"(

    )"*+/MMB$

    +"

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    C$%%en LNG Co! CoAe551ene!!

    Source: 'rcy $'rsey e! 'l# i!uefied 2atura# 3as, E4p#orin' Ener'y,/nc.5s "uture *ith a Deve#opin' "ie#d # D )', Cen!er# 2004

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    L5>$efa.5on Co!! T%an!fo%Ae e% onne of .aa.5

    Source: BP

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    LNG G%eenel L5>$efa.5on Co!!

    W l LNG O l k

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    Wo%l LNG O$lookiIuefaction Dacilities

    Source: IE(

    LiDuefaction !ost is *roing

    Technology imro/ement,higher caacity lants,

    imro/ed economies ofscale

    Source: )"*Source: )"*

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    LNG Sh55ng

    166 eEis!ing )"* s/is# 's o+"o 2004 ,i!/ 105 on or=er. /e+lee! sie nee=s !o incre'se y 3-4 !ies !o ee! !/e roBec!e=gro,!/ in !r'=e y 2030.

    Source: E) P(S* +

     ),# *neWorld- .www'lngoneworld'co$. 

    Source: 223

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    Mao% Na$%al Ga! T%ae Mo1eAen! 

    BP Statistical Review of World Energy 200

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    Ne- T%ae Ro$e! ;%e EAe%g5ng

      $;isting Trade  rosecti/e Trade

      $;isting Trade  rosecti/e Trade

    #ource: +wata, Makoto, Mitsui "8#8@8 Lines, Ltd8, ),#/ransportation- LNG Ministerial #ummit, ashington *8!8, 7..=

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    LNG Sh55ng Co!!

    Source: ),# *neWorld- .www'lngoneworld'co$. 

    W l LNG O l k

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    Wo%l LNG O$look 9hipping

    Source: IE(

    #hiing !ost is *roing

    !ometition 3etweenshiyards, technology

    imro/ement, higher caacityshis, imro/ed economies of

    scale

    Co! of T%an!o% o he Ea!e%n

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    Co! of T%an!o% o he Ea!e%nU"S"G'se= on Coe oin!# $ )"* Ior! erin'l.

    H-

    H0.20

    H0.40

    H0.60

    H0.80

    H1.00

    H1.20

    H1.40

    H1.60

       J   9   M   M   &   t  u

    Mid $ast 8 ( N8 'frica

    Source: Pace #lobal Energy Services

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    LNG So Ca%go ( 8ol$Ae

    fol 5n.%ea!e f%oA )''

    our'es 1 Carson (esear'! tu"ies, L+ /ra"e & /ransport, 2003,$%

    8ol$Ae of LNG So Ca%go

    MTP;

    So T%a5ng 5!5n.%ea!5ng %a5l

    #ource: +wata, Makoto, Mitsui "8#8@8 Lines, Ltd8, ),#/ransportation- LNG Ministerial #ummit, ashington *8!8, 7..=

    Wo%l LNG O$look

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    Wo%l LNG O$look  9torage and @egasi:cation Dacilities

    Source: IE(

    #torage and egasification !ost is *roing

    Larger caacity lants,imro/ed economies of

    scale

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    Ene%g B%5ge #9huttle and NG@egasi:cation 98stem&? Excelerate? 7!shore A)

    The $nergy &ridge is a regasification /essel and a 3uoy system thatdeli/ers natural gas into offshore ielines8

    =5>Meters

    =5>=5>MetersMeters

    #u3sea#u3seaManifoldManifold

    *ocking &uoy*ocking &uoyand iser and iser 

    #u3sea#u3seaielineieline

    1. to 17 Miles *eendent on ater *eth-1. to 17 Miles *eendent on ater *eth-1. to 17 Miles *eendent on ater *eth-

    LNG egas8LNG egas8esselessel

    Source: El Paso

    Ma5n Pa!! Ene%g H$7

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    Ma5n Pa!! Ene%g H$7Ca1e%n(7a!e LNG Re.e515ng :a.5l5

    M.Mo%an, L;"

    T!e Bis!o" Process •

    re'eive L+ "ire'ty fro4 an os!ore taner,•  pressurie an" war4 it to *0o-,• In6e't t!e resuting natura gas into un"ergroun" sat 'averns for storage.• ee'tivey ei4inate t!e nee" to bui" e7pensive abovegroun" 'ryogeni'

    storage tans

    Source: Conversion #as I$port  http:88***.conversion'as.com8htm#89ishopprocesstm.htm#  

    LNG S$l I!!$e!

    http://www.conversiongas.com/html/bishop_processtm.htmlhttp://www.conversiongas.com/html/bishop_processtm.html

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    LNG S$l I!!$e!LNG Ine%.hangea75l5

    LNG HH8 Rela51e o T5.al P5el5ne Ta%5 Range

    #cheduling coordination, 3lending, and inert gas inection could result inconsistency of gas roduct and easily o/ercome interchangea3ility concerns8

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    Ga!(o(L5>$5! ?GTL@

    • ;hat are the8Q• G5 technolog8 converts natural gas into

    h8drocarbon liIuids and promises tocomplement NG in transporting remotenatural gas to distant mar=ets in theabsence of existing pipelines)

    • 2mpetus for the G5 technolog8F $lean fuel

    obtained as product and eas8 transportation

    Source: Deshpande, A & Economides, M.J. – University of Houston

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    • G5 processes convert the gas intoh8drocarbon liIuids)

    • 5he main products are "iddle

    distillates li=e gasoline? =erosene? >etfuel? naphtha and diesel

    Source: Economides, M.J. – University of Houston

    Ga!(o(L5>$5! ?GTL@

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    Rea!on! fo% GTL a%a.5on

    • "onetizing stranded natural gas• 9alvaging associated gas

    • "eeting environmental speci:cations

    • "aintaining pipeline productivit8 #e)g)?Alas=a pipeline&

    Source: Economides, M.J. – University of Houston

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    •  5he Discher35ropsch s8nthesis #D35 s8nthesis& is onethe important technologies in G5)

    •  5he main advantage of the D35 products is theabsence of sulphur? nitrogen and complex c8clich8drocarbons resulting in almost no emissions ofsulfur dioxide? nitrous oxides and unburnedh8drocarbons) 

    • Dor %// barrels of liIuids there is a need for %""scf of gas

    Ga! o L5>$5!

    Source: Deshpande, A & Economides, M.J. – University of Houston

    O1e%15e- of a 5.al

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    O1e%15e- of a 5.al%o.e!!

    :5!.he%(T%o!.h Meho

    Source: Economides, M.J. – University of Houston

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    1rocesses for converting methane

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    E5!5ng an EAe%g5ngTe.hnolog5e!

    Company Syngas Fischer-Tropsch Catalyst Plant Size, bpd

    *aso +*- A/+12 *urry p!ase e, Co 50,000

    )'03250 oC, )03$5 at4

    *!e +*-* 16+12 i7e" be" Co 50,000

    +8on39atayti9

    )'03250 oC, )03$5 at4

    E77onobi A/+12 *urry p!ase Co :50,000

    A;C32) +ui"i

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    G5 5echnolog8 Assessment

    • All propose mild h8dro3isomerizationBh8drocrac=ing forproduct upgrading

    • Exxon and 9asol are considering separate upgrading forlight fraction #naphtha& and heav8 fraction #distillate&

    • 9hell proposes single stage h8drocrac=ingBisomerization

    • ExxonRs patented ox8genate preservation #for enhancedlubricit8& and fuel formulation technolog8 could wellprove valuable in non3blending fuel mar=ets– 7x8genates improve lubricit8 of G5 diesel– 4ene:ts in blending mar=ets are doubtful

    • Cpgrading technolog8 is li=el8 to be modi:ed on a site3

    b83site basis to extract premium products #waxes? a3ole:ns? alcohols? lube feedstoc=&

    Source: 37 Study 

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    • $ost of G5 productsF (/S per bbl of oilreIuired for economic returns on G5pro>ect)

    • G5 can satisf8 di!erent mar=et needs)

    GTL Co!

    Source: Deshpande, A & Economides, M.J. – University of Houston

    CoAa%5!on of CNG an

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    G5 production costsF (/?///3,0///Bbarrel of liIuid produced

    Dor 0//""scfBd plant %)0 billion

    $NGF ,/3-/ million for 0//""scfBd unit)

    9hips used for transporting petroleum products can be leased for

    transporting the G5 products)

    9hipping is a ma>or part of a $NG pro>ect

    GTL

    Source: Deshpande, A & Economides, M.J. – University of Houston

    CoAa%5!on of CNG an

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    CoAa%5!on of CNG anLNG

      9ize of investment for a 0//""scfBd plant $NG NG

    @eservesF "odest arge

    1roduction costF "",/3-/ ""*0/3(///T

     5ransportation costsF ""(,/Bship ""%./BshipCnloading costsF ""%.3(/ ""0//300/

     5otal investmentF %3( billionTT (3, billionTT

    T 6epending upon the location of the production site

    TT 6epending upon the number of ships used for the transport of the gas)

    Source: Deshpande, A & Economides, M.J. – University of Houston

    CoAa%5!on of CNG an

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    1rice of the gas deliveredNG value chain per ""45C

    Exploration and 1roductionF /)03%)/B""45C

    iIuefactionF /)+3%)(B ""45C)

    9hippingF /)-3%)0B ""45CT)

    @egasi:cation and 9torageF /),3/)0B ""45C)

    %)// as netbac= for the investors 

    Dinal price of NGF ,)//30)(/B""45C)

     T Dor transport distances from %/// miles to 0/// miles 

    LNG

    Source: Deshpande, A & Economides, M.J. – University of Houston

    CoAa%5!on of CNG an

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    $NG value chain per ""45CExploration and 1roductionF /)03%)/B""45C

    1rocessing and transportationF %)/+3,)+(B""45CT

    %)// as netbac= to the investor

    :5nal $n5 %5.e of CNG9 *"("*/MMBTU 

    T Dor transport distances from %/// miles to 0/// miles 

    LNG

    Source: Deshpande, A & Economides, M.J. – University of Houston

    CoAa%5!on of CNG an

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    Advantages of $NG over NG

    • @eIuirement of lower throughput of gas for a pro>ect• 2nvolvement of lower capital• Ease of deplo8ment U faster implementation of a

    pro>ect• Abilit8 to access stranded reserves and monetize

    them• "a>orit8 of the investment is in the shipping? ma=ing

    the assets movable and reducing the ris= involved

    6isadvantages

    2nabilit8 to transport large volumes of gas such NG6isparit8 in the volume transport hinders commercial

    possibilit8 of $NG

    LNG

    Source: Deshpande, A & Economides, M.J. – University of Houston

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    T%5n5ao GOM

    ;$!%al5a oBaa

    8ene6$ela o GOM

    :ee!o.k ga! +" +" +"

    L5>$e.a5on +"' +"+

    )"4T%an!o%a5on +"+ )"*+

    Rega!5.a5on +"

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    D5alog$e$NG experience in 2ndia

    • $NG suppl8 for eet vehicles established in2ndia


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