PTQ Gas 2022 Issue

Worldwide gas industry goes full throttle As theworld transitions to low-carbon energy sources like LNG, gasmarkets are diversifying further into hydrogen, ammonia, methanol, and petrochemicals

RENE GONZALEZ Editor, PTQ

N atural gas is the most hydro- gen-rich carbon source available on earth. Its uses continue diversifying in parallel with its cost varying worldwide, such as $3.92 per MMBtu in North America compared to over $12 per MMBtu in Europe. Its demand is nonetheless going to increase every- where as the circular economy tran- sitions to net-zero emissions (NZEs) by 2050. But it is not just hard-to-abate sec- tors facing a long road to net zero. Sectors that have sites in remote locations, such as mines, need to overcome the hurdles of access before considering how they begin to reduce their emissions footprint. Decarbonisation Traditionally, diesel has been seen as the fuel of choice due to its inherent energy density, reliabil- ity, availability, and relative cost advantage. Natural gas emits up to 40% less CO 2 , 80% less NOx, and 99% less SO 2 than diesel, making it a good bridging solution for com- panies seeking to take the first step towards decarbonisation. Because of these bespoke aspects, natural gas will be the fastest-grow- ing fossil fuel from 2020 to 2035. It is the only fossil fuel expected to grow beyond 2030, peaking in 2037 before being replaced by renewa- ble solutions. In addition to pro- ducing fewer emissions than other fossil fuels, some of its other bene- fits include being environmentally safer to store than other fossil fuels. At its current level of consumption, natural gas has enough recoverable resources to last around 230 years, according to certain estimates. Despite the current costs of hydrocarbon based gas resources in 2022, natural gas technology has

Lean amine

Sweet gas

Acid gas

Air cooler

Scrubber

Feed-euent

Regenerator

Sour gas

Steam

Rich amine

Figure 1 Typical amine unit flow diagram

become much more accessible and dependable, providing more flex - ible energy options for industrial operations. For example, many natural gas generators needed for rapidly expanding mining opera- tions worldwide now offer a signif - icantly lower total cost of ownership than ultra-low sulphur No 2 die- sel and highly de-rated propane counterparts. Technology enhancements from the wellhead to the end user cre- ate efficiencies that translate to cost savings in nearly every aspect of the LNG lifecycle, from installa- tion to maintenance to fuel cost. This explains why the US Energy Information Administration (IEA) forecasts that US natural gas mar- keted production will increase to an average of 104.4 bcf/d in 2022 and then to a record-high 106.6 bcf/d in 2023. Major gas producers, including Qatar and Australia, are expected to report increasing year-on-year production as demand primarily grows in the industrial sector. Here, currently over 8% of the world’s gas production provides feedstock for the petrochemical sector. Other expanding sectors include:

• Midstream (pretreatment) • LNG

• Hydrogen • Ammonia

Midstream pretreatment From the wellhead to the process- ing facility (refinery, steam cracker, LNG plant), opportunities are expanding for technology suppliers at the upstream-to-midstream inter- face. Tighter specifications around contaminants removal before enter- ing the pipeline (to the processing facility) range from sulphur to mer- cury removal of produced gas. For example, over 700 in-the-field gas plants in the Canadian province of Alberta vary in complexity from simple gravity based separation of gas and liquids to Claus based sul- phur recovery units (SRUs), amine units (see Figure 1 ), tail gas treaters (TGTs), and sour water strippers. In the gas processing industry, H 2 S, SO 2 , CS 2 , mercury, and other con- taminants need to be removed to meet pipeline specifications. The gas treatment technology to achieve specifications is gener - ally well understood. However, the challenges to achieve quality spec- ifications by removal of harmful

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