ptq PETROLEUM TECHNOLOGY QUARTERLY
Breaking the code for increased LNG production
T he LNG industry is just over 50 years old and will play a dominant role in the transition to zero-carbon fuels. Its direct linkage to power, fuels, hydrogen, ammonia, petrochemicals, and CCS has underpinned the emergence of a worldwide natural gas market. LNG demand plays an essential role in accelerating the development of zero- carbon energy and power sources. For example, the need for distributed energy resources for the mining of precious metals in remote regions compels the demand for LNG to power 2-35 MW microgrids popping up in Africa, South America, and the Caribbean basin. Coal-to-gas diversification strategies have been a significant factor in driving LNG demand in China and India. Europe is also playing a major role in the global LNG market despite the 2020 emergence of the global pandemic and the intensity of the war in The Ukraine. In fact, LNG markets are expected to grow significantly, with 210 Mtpa in incremental supply by 2040, according to a recent McKinsey & Co. report. That is an almost 50% increase in today’s supply. In the past, bottlenecks to global expansion of LNGmarkets have been due to a lack of LNG import terminals and related infrastructure, along with nascent government support. On the positive side, the ability to ‘break the code’ for the fracking technology needed to bring LNG to market efficiently from shale basins launched the massive expansion of LNG and ethylene production from shale based ethane. The LNG industry’s characteristics are well understood, and, in most cases, first principles engineering solutions are available. Lately, inefficient LNG production results from feedstocks varying in composition, contaminant levels, and other factors, leading to nonlinearities in LNG operations. With energy optimisation of the single mixed refrigerant (MR) natural gas liquefaction process, we see parallels with the optimal operation of large-scale liquid hydrogen plants utilising mixed fluid refrigeration systems. For these MR based systems, maximising overall plant efficiencies, increasing an LNG plant’s liquefaction section’s performance and reducing downtime is crucial to increasing productivity from each LNG train. Variations in MR based technologies continue to dominate onshore LNG infrastructure, while moderate-to-small but highly efficient modular LNG units open opportunities to capture underserved LNG markets. It is no secret that government and national policies heavily influence the LNG industry’s velocity. LNG is good insurance for dealing with the intermittency of renewable resources like wind and solar and the high costs of EVs. The dramatic rise in the cost of precious metals, such as platinum, palladium, and cobalt used in EVs, wind generators, and battery storage, may extend the timetables for zero-emissions targets, further increasing reliance on LNG. Capital constraints may nonetheless limit the expansion or construction of greenfield LNG facilities. Otherwise, optimisation and efficiency strategies can yield more value from existing LNG facilities. The accelerating role of AI seen in other industries can benefit LNG operations. Even a 1-2% increase in production can result in an additional $10-20 million in revenue. For example, combining an AI and ML suite of interoperable solutions can identify factors impacting production, including product yields varying over time and quality issues emerging without sufficient warning. Against this backdrop, we developed Gas 2022 to provide additional process insights that can help industry engineers identify opportunities to close the gap between current and optimal production.
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PTQ (Petroleum Technology Quarterly ) (ISSN No: 1632-363X, USPS No: 014-781) is published quarterly plus annual Catalysis edition by EMAP and is distributed in the US by SP/Asendia, 17B South Middlesex Avenue, Monroe NJ 08831. Periodicals postage paid at New Brunswick, NJ. Postmaster: send address changes to PTQ (Petroleum Technology Quarterly) , 17B South Middlesex Avenue, Monroe NJ 08831. Back numbers available from the Publisher at $30 per copy inc postage.
RENE GONZALEZ
Gas 2022 5
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