Typical projects of low-tonnage complexes for the production of LNG on GRS with a capacity from 1.5 to 5.0 t / hr

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1 Typical projects of low-tonnage complexes for the production of LNG on GRS with a capacity from 1.5 to 5.0 t / hr Chairman of the Board of Directors Gazprom SPG Technologies Ltd Alexey K. Kakhidze

2 ADVANTAGES OF LNG AS MOTOR FUEL LNG TECHNOLOGY Liquefied natural gas is natural gas (methane), cooled to cryogenic temperature ( ºС). When cooled, the volume of natural gas is reduced to 600 times, which increases the efficiency and convenience of its storage, transportation and consumption asmotor fuel. ADVANTAGES OF LNG ON COMPARISON WITH TRADITIONAL (OIL) FUEL SPECIES ADVANTAGES OF LNG ON COMPARISON WITH CNG Ecological compatibility up to 65% reduction of harmful emissions into the atmosphere (CO and heavy hydrocarbons) logistics efficiency the possibility of transporting LNG to areas remote from gas trunklines Economical Engine service life up to 30-50% potential reduction in fuel costs due to cost not exceeding 50% of DT by mass 1.5 times increased engine life Increased mileage Increased safety Lightweight vehicle weight 3 times higher mileage of the vehicle without refueling MPa - pressure in the cryogenic fuel tank significantly lower mass-size characteristics of fuel system equipment 2

3 CSPG at GDS-1 Kaliningrad 21 th. Tons / year CGS on the GDS Pskov 21 th. Tons / year EXISTING INFRASTRUCTURE OF LNG LOW-TONNAGE PRODUCTION IN THE RUSSIAN FEDERATION CGS on AGАСS # 8 Peterhof 8 th. Tons / year CGS at AGАСS Kingisepp 11,1 th. Tons / year CGS at AGFCS Pervouralsk 7,4 th. Tons / year SGSG on GDS-4 Ekaterinburg 21 th. Tons / year СSPG Kanyusyata, Perm Region 1,1 th. Tons / year 100 TH. TONS / YEAR TOTAL PERFORMANCE 4

4 OBJECTIVES OF DEVELOPMENT OF THE BUSINESS- SEGMENT OF LNG FOR THE GAZPROM GROUP LNG TECHNOLOGY Strengthening Russia's energy and environmental security Preservation of the leading positions in the Russian gas-fuel market through diversification of supplies Leader of the Russian energy market Increase the sale of natural gas to consumers in the domestic market, including remote regions Increase the load of the existing gas transportation infrastructure (including gas distribution stations, CNG refueling stations) The order of the Chairman of the Management Board of PJSC Gazprom A.B. Miller from 01/01/ Reduction of costs for the creation and reconstruction of the gas transportation infrastructure due to the effect of its integrated use Responsibility Center of PJSC Gazprom on the use of LNG as motor fuel СПГ ТЕХНОЛОГИИ The order of the Chairman of the Management Board of PJSC Gazprom A.B. Miller from Responsibility Center of PJSC Gazprom for the lowtonnage production and use of LNG 6

5 TARGET SEGMENTS OF CONSUMERS OF LNG AS MOTOR FUEL HIGHWAY AUTO TRANSPORT BUNKERING OF MARINE AND RIVER VESSELS CAREER TRUCKS RAILWAY TRANSPORT AGREECULTURAL EQUIPMENT Cargo trucks with a load capacity more than 12 tons Intercity buses Container trucks Dry cargo ships Tankers Ferries Career trucks with carrying capacity over 90 tons Trunk gas turbine locomotives Shunting gas turbo locomotives Tractors 7

6 TECHNOLOGICAL SOLUTIONS FOR LOW-TONNAGE LNG PRODUCTION The order of the Chairman of the Management Board of PJSC Gazprom A.B. Miller from TECHNOLOGY 1: LNG production at GDS by medium pressure cycle with an expansion turbine TECHNOLOGY 2: LNG production on partial liquefaction complexes located outside the GRS, but technologically related to it The "Small-tonnage production and use of LNG Development Program was designed TECHNOLOGY 3: LNG production at autonomous full liquefaction complexes located on high-pressure gas pipelines TECHNOLOGY 4: LNG production at mobile liquefaction complexes located on CNG filling stations or on low pressure networks Project capital expenditures during the construction of low-tonnage LNG complexes of TECHNOLOGY 1: - CSPG with a capacity of 1.5 t / h (12 thousand t / year) - 1,800 thousand rubles. (approximately 31 million cu) - CSPG capacity 3.0 t / h (24 thousand t / year) thousand rubles. (approximately 42 million cu) - CSPG with a capacity of 5.0 t / h (40 thousand t / year) - 3,900 thousand rubles. (approximately 67 million cu)

7 A typical installation for low-tonnage LNG production at the GRS has the best technological achievements of existing low-capacity plants in terms of reducing energy costs, logistics and at the same time has: - extremely simple procedures for routine maintenance during operation; - long operation without maintenance; - high degree of automation; - compact layout and modular construction principle, high degree of factory readiness of the supplied equipment; - typed project solutions to reduce the duration and costs of deploying new production; - transportability of the unit's units, to increase their liquidity. These requirements are met by the liquefaction technology based on the use of the expander cycle at the differential pressure of the gas distribution system, as the most effective of the existing technologies for the low-tonnage production of LNG due to minimal operating and capital costs, with consistently high product quality. The expander cycle at the differential pressure of the gas distribution system does not have a separate compressor equipment in its composition, without permanent operation of which LNG production is impossible by other technologies. Together with the compressor equipment, the pressure drop of the gas distribution system does not include the capital and operating costs associated with it, the electric power consumption is minimized, the reliability of the installation is increased, the site for equipment placement and the number of maintenance personnel are reduced. TYPICAL LOW-TONNAGE LNG PRODUCTION COMPLEX AT GDS Technological scheme of LNG production on the GDS

8 LNG production is carried out on domestic equipment for import-independent energyefficient technology, using differential pressure on the gas distribution system. The equipment has a modular construction principle and allows you to adapt the infrastructure to the actual tasks of consumers and the conditions of binding to existing gas transmission facilities. The equipment corresponds to GOST (state standart) "Objects of lowtonnage production and consumption of liquefied natural gas. General technical requirements ", which simplifies the state expertise of the design documentation and operation of the production facility with this equipment. The quality of LNG for moisture and CO2 impurities corresponds to grade A in accordance with GOST R (state standart) "Combustible Natural Liquefied Gas. Fuel for internal combustion engines and power plants. Technical conditions» (less than 1ppm and 50ppm, respectively). The complex provides production of up to 5 tons of LNG per hour. Graduation according to the temperature of the production LNG from "cold" to "warm" (from 0.11 to 0.45 MPa absolute by the pressure of saturated vapors in the storage). It is possible to prepare transport tankers for LNG loading. Wasteless, highly efficient technology: the installed capacity of electric consumers for own needs of the equipment does not exceed 100 kw, there is the possibility of autonomous generation of electricity without the use of fuel. TYPICAL LOW-TONNAGE LNG PRODUCTION COMPLEX AT GDS A typical mock-up project for the production of LNG on the GDS The average electricity consumption does not exceed kwh / kg of LNG, depending on the plant's capacity. These costs have a conservative nature, are determined by the nomenclature of the applied electric auxiliary equipment and practically do not change with increasing productivity. It is possible to operate the equipment with connection to an external network only to reserve electric power in case of a failure of its own generation. Compactness of placement on the construction site: the area under the equipment of the technological line of a typical installation at 5 t / h is not more than 750 m2, the minimum area of CGS with one line of a typical installation is about 5000 m2. Effective work with pressure drops on the GDS from 3.5 to 10 MPa. High degree of automation of all stages of the technological process. The liquefaction factor is up to 25% (the ratio of the costs of the LNG production stream and natural gas supplied for liquefaction). Fast time to enter the operating mode and efficient control over a wide range of input parameters and performance.

9 STEPS OF LNG MARKET DEVELOPMENT LNG TECHNOLOGY Step Step Step Pilot projects to create a marketing infrastructure in the target segments Replication of the marketing infrastructure within the geographical clusters Realization of the project on creation of the LNG production and sales infrastructure for the anchor consumer of OJSC Russian Railways on the Sverdlovsk and North-Western railways and the North-Latitude Hod GAZPROM GROUP Realization of pilot projects on creation of low-tonnage production of LNG for 4 technologies Replication of the industrial infrastructure of LNG Conducting R & D STATE Creation of normative-legal and normative-technical base The introduction of state programs to stimulate the purchase of equipment on LNG Serial production of LNG equipment Development of the secondary market for LNG equipment and service infrastructure PRIVATE BUSINESS Localization of foreign LNG equipment 16

10 THANK YOU FOR ATTENTION