How does Natural Gas Re shape the Low Carbon Economy / Energy Market

Transcription

1 How does Natural Gas Re shape the Low Carbon Economy / Energy Market Jockey Club Auditorium The Hong Kong Polytechnic University Wednesday, 24th April 2013 Co organized by Sponsored by

2 Steering Committee Chairman: Members: Ir. Dr. Otto Poon Mr. John Cullen, CLP Ir. James Y.C. Kwan, HKCG Ir. C.K. Lau, HK Electric Organizing Committee Chairman: Members: Ir. Louis K.S. Szeto Mr. Ambrose Chen Ir. W.K. Chow Ir. Camy Fong Ir. C.O. Ho Ir. Lewis H. Y. Ho Ir. Y.L. Kwan Prof. Alan Lau Ir. Edwin K.K. Lau Ir. Anthony Man Ir. Sam C.K. Shum Ir. C.M. Tong Ir. Alan C.M. Tsang Ir. Duncan W.O. Wong

3 Seminar Programme 0930 Opening Remark Ir. Otto Poon Chairman, Steering Committee Presentation of Trophies and Certificates of Appreciation An Overview of China and Hong Kong Natural Gas Supply Developments Ir. Aaron Chan, CLP Hydrographic Survey of HK Electric Submarine Natural Gas Pipeline Ir. Mario C.F. Lau, HK Electric 1100 Tea Break 1130 Regulatory Framework on Natural Gas in Hong Kong Ir. Eric Wong, EMSD Development of HK Electric Gas Receiving Facilities at Lamma Ir. Y.L. Kwan, HK Electric 1230 Lunch 1400 Natural Gas as Feedstock in Towngas Production Ir. Chris Man, HKCG Natural Gas Quality Management Mr. Kevin Leung, CLP 1500 Tea Break 1530 Latest Development and Application of Natural Gas Distributed Energy System in China Dr. Guo Jiasheng, Shanghai Aerospace Energy Co., Ltd., PRC The Development Overview of Natural Gas Direct fired Chiller Mr. Li Zhan, Broad Air Conditioning Co., Ltd., PRC Potential Technologies for Future Subsonic Transport Aircraft with LNG Propulsion Dr. John P Gyekenyesi, NASA Glenn Research Center, USA Closing Remark Ir. Louis K.S. Szeto Chairman, Organizing Committee

4 An Overview of China and Hong Kong Natural Gas Supply Developments Ir. Aaron Chan Commercial Analyst CLP Power Hong Kong Limited Ir. Aaron Chan has been employed by CLP for over 12 years. For the past 3 years, he has been assigned to the Commercial Group where his responsibilities have included leading negotiations on operations arrangements for the new pipeline (the Hong Kong Branch Line) connecting PetroChina s 2 nd West to East Pipeline in Shenzhen to Black Point Power Station in Hong Kong, developing risk mitigation strategies for various contracts, monitoring regional gas/lng market developments and coordinating updates to CLP s gas procurement strategy. Prior to joining the Hong Kong Branch Line Project in 2009, he was responsible for operation, construction and planning of CLP s power system transmission and distribution network. In 2006, he was also seconded to EnergyAustralia for 1 year to familiarize with the business operations of the deregulated power market in Australia. He holds a Bachelor Degree in Electrical Engineering (EESE) in The University of Hong Kong and a Master Degree in Operation Management in The Hong Kong Polytechnic University. Natural gas demand in China has been growing rapidly in recent years as a result of governmental policy to increase the role of this cleaner burning fuel in overall energy supply. To meet this growing demand, China has both significantly increased domestic production and turned to imports from multiple sources of both pipeline gas and LNG. In addition, China has quickly developed pipeline infrastructure to transport gas to areas where it is needed and developed a pricing regime that considered the needs of various stakeholders. Similar to the Mainland, gas users in Hong Kong now look to multiple gas sources to meet growing demand. Here, natural gas is mainly used as fuel for generating electricity and household usage. The promotion of using more gas to replace coal for electricity generation is increasing with the environmental and air quality concerns. CAPCO started using gas as a fuel for power generation in 1996 and currently is the largest gas user in HK. Until recently, we have relied entirely on the Yacheng 13 1 field to meet our needs. However, in anticipation of the depletion of the field and to meet the increasingly stringent environmental requirements, CAPCO began assessing alternative gas supplies more than a decade ago. In 2008, HKSAR Government signed an MOU on Energy Cooperation with National Energy Administration (NEA), and late last year, our first new long term supply covered under the MoU from PetroChina s 2 nd West to East Pipeline reached Hong Kong. This presentation looks at recent developments in the Mainland and Hong Kong, and considers how developments on the horizon could affect future natural gas supplies.

5 Hydrographic Survey of HK Electric Submarine Natural Gas Pipeline Ir. Mario C.F. Lau Mechanical Engineer Hongkong Electric Co., Ltd. Ir. Lau received his Bachelor of Engineering in Mechanical Engineering from The University of New South Wales in 1994 and Master of Science Degree in Mechanical Engineering from The Hong Kong Polytechnic University in 2001 and MBA from Hong Kong Baptist University in He is currently working in The Hongkong Electric Co., Generation Division, Technical Service Section. He is responsible for the planning and development works related to fuel supply, including natural gas and coal, and ash plant facilities in the Lamma Power Station. According to HK Electric s Submarine Natural Gas Pipeline Integrity Management Manual, HK Electric has to conduct an external inspection, once every five (5) years, of the subsea natural gas pipeline to verify integrity of the pipeline and to assess condition of the seabed along the pipe route. The pipe was erected in Therefore, a hydrographic survey was performed in 2011 to check the integrity, burial depth and location of the 93 km submarine pipe. The hydrographic survey comprised bathymetry survey, side scan sonar survey and sub bottom profiling survey. This paper presents the course and results of the swath bathymetric and side scan sonar surveys conducted in Hong Kong Waters and PRC Waters along the entire pipe route, and the sub bottom profiling survey conducted in Hong Kong Waters. An interesting phenomenon of masking in some sections of the pipeline where burial depth of the pipe could not be determined with confidence is also described. Investigation revealed that water filled voids trapped by irregularly deposited shells could be a cause of the poor seismic signal quality.

6 Regulatory Framework on Natural Gas in Hong Kong Ir. Eric Wong Electrical and Mechanical Engineer Electrical and Mechanical Services Department, HKSAR Government Ir. Eric Wong is the Engineer of Gas Standards Office of Electrical and Mechanical Services Department. He is a Chartered Mechanical Engineer with over 15 years of experience in project management and regulatory services. His current work is law enforcement in gas safety covering areas in natural gas for power generation, LPG terminals and LPG transportation in bulk by road tanker. Natural gas has been introduced into Hong Kong for more than 15 years. Its use as a fuel source for power generation and as a feedstock for town gas production reduces emissions, contributing to a better and cleaner environment. Under the Gas Safety Ordinance, the Gas Authority controls, in the interests of safety, the importation, manufacture, storage, transport, supply and use of natural gas. This presentation would share with the audience the current status of use of natural gas in Hong Kong, and the statutory requirement of Registered Gas Supply Company (RGSC), notifiable gas installation (NGI) and gas quality. Current practice in monitoring the performance of the gas supply companies in fulfilling their duties and obligations under the Gas Safety (Registration Gas Supply Companies) Regulations and surveillance inspection on natural gas NGI under the Gas Safety (Gas Supply) Regulations will also be introduced.

7 Development of HK Electric Gas Receiving Facilities at Lamma Ir. Y.L. Kwan Head of Mechanical Department Head Hongkong Electric Co., Ltd. Ir. Kwan received his Bachelor of Science Degree in Mechanical Engineering from the University of Hong Kong in 1983 and has since then working with The Hongkong Electric Co., Ltd. He has all round design and construction experiences for thermal power plants, fuel gas supply systems as well as emission control facilities. Ir. Kwan is now the Head of Mechanical Department of Projects Division and is taking an active role in the development of power plant projects in Hong Kong including the construction of gas fired combined cycle units, submarine gas pipeline and gas receiving facilities at Lamma Power Station. HK Electric introduced the use of natural gas as fuel for electricity generation in 2006 to deliver on its commitment to a cleaner and greener future. Its first gas fired combined cycle unit (L9) and another combined cycle unit (GT57) converted from two oil fired gas turbines were built on this purpose. Natural gas is delivered to Lamma Power Station (LPS) from Guangdong Dapeng LNG Receiving Terminal in Shenzhen via a designated 92 km submarine pipeline which lands and connects to the Gas Receiving Station (GRS) located at the southwest corner of the Lamma Power Station Extension (LMX). The GRS is equipped with facilities for filtering, metering, heating up and regulating pressure of the incoming gas to conditions suitable for supplying to the gas fired generating units. According to the initial GRS process design, natural gas is supplied via a common gas stream to the pressure reduction streams for each gas fired unit. In order to eliminate the risk of loss of gas supply to all gas fired units in LPS simultaneously due to failure of any single equipment in the common gas supply stream, HK Electric has recently carried out an extensive modification in the GRS aiming to segregate the original common gas supply stream into two separate supply streams to the gas fired units. Notwithstanding the very tight outage period and numerous technical challenges, the modification work was successfully completed on a timely basis to meet all technical requirements without a single safety incident. This paper presents the development of HK Electric Gas Receiving Station with highlight on the subsequent reliability improvement works carried out in phases.

8 Natural Gas as Feedstock in Towngas Production Ir. Chris Man General Manager Gas Production The Hong Kong China Gas Co., Ltd. Ir. Chris W.C. Man graduated in 1983 from Imperial College of Science and Technology, University of London with a B.Sc. (Eng) in Chemical Engineering. He joined H.K. & China Gas Co. Ltd. (Towngas) in 1984 as a Graduate Trainee. He was one of the shift leaders to commission Taipo Plant phase I units and was the project coordinator for the phase II expansion. During his time as the Taipo Plant Manager, he was the project in charge of the 115% & NG conversion from He was appointed to his present position of General Manager Gas Production in February this year and is now responsible for all Gas Production matters in Hong Kong. To cope with the diversification of Towngas, he has also taken up the post of General Manager of P Tech Engineering Co. Ltd. (P Tech) since P Tech is a wholly owned subsidiary of Towngas, providing engineering consultancy, risk assessment services as well as one stop package on Engineering, Procurement and Construction of chemical plants. Chris is a RPE (Chemical) and a corporate member of HKIE. He is also a Chartered Engineer, a Fellow of the IChemE, corporate member of IGEM, a European Engineer as well as a Chartered Scientist. Founded in 1862, The Hong Kong and China Gas Company Limited (HKCG) was Hong Kong's first public utility. Today, we are one of the largest energy suppliers in Hong Kong, operating with world class corporate management and leading edge business practices. With a pipeline network of more than 3,500 km, we supply town gas to over 1.75 million customers in Hong Kong. Expanding our business horizons in recent years, we have diversified our business into telecommunications, building services, engineering and the new eco energies, among many others; both in Hong Kong and the Mainland. Town gas is currently produced at two production plants. Major supply of 97% comes from the newer Tai Po Plant, with the Ma Tau Kok Plant making up the rest. The Tai Po Plant is located in the Tai Po Industrial Estate, covering an area of hectares. It has a maximum supply capacity of 9.6 million standard cubic metres of gas a day.

9 HKCG commenced supply of town gas in Hong Kong with coal as feedstock in Gas supply mains consisting of 24 km of pipelines were connected to 500 street lamps and selected buildings. Feedstock was changed from coal to heavy oil in 1967 to reduce the pollution in the gas production process. Much cleaner oil, naphtha, was first introduced as a feedstock in the production of town gas in 1973 and it became the main feedstock for the production of town gas since To further minimize the environmental impact of gas production process and increase the feedstock supply security, we introduced natural gas as a partial feedstock for our Tai Po gas production plant in Apart form modifying the production plants, we have also invested in the construction of a pair of 34 km long high pressure submarine pipelines to deliver natural gas from the Liquefied Natural Gas Terminal in Shenzhen Chengtoujiao to out Taipo Plant. Natural Gas is one of the cleanest fossil fuels and using a dual natural gas and naphtha feedstock mix makes the gas production cleaner. Sulphur oxides, nitrogen oxides and carbon dioxide emissions are significantly reduced, bringing further improvement to Hong Kong s air quality. NG currently shares 55 60% of the total energy input of town gas production and the savings resulted from the cheaper natural gas is passed back to our customers. Since its introduction in 2006 till December 2012, there was a total saving of HK$ 9.5 billion and gas price now is still cheaper than the pre NG era. In view of the success, we are now working to modify our MTK Gas Production Plant to NG feedstock too, as well as looking into other ways to further increase the energy share of NG.

10 Natural Gas Quality Management Mr. Kevin Leung Black Point Gas Supply Project Plant Modifications Package Manager CLP Power Hong Kong Limited Mr. Kevin Leung has eighteen years of technical engineering experience in the oil and gas industry ranging from Operation, Engineering, Planning, Pricing, and Marketing. He started his career with Mobil as Operation Trainee and then ExxonMobil for 12 years before he joined CLP Power HK Ltd. as Senior Process Engineer in 2006 and worked on the proposed Hong Kong LNG project. In 2009, he started working in the Black Point Gas System Project and he is the Black Point Power Station Modification Package Manager who is responsible for the engineering design of the Black Point Plant Upgrade which includes GE supplied Fuel Quality Management System and the associated Gas Turbine Control System Upgrade, and Combustion Dynamic Monitoring System. With the depletion of Yacheng gas field which is currently the sole source of gas supply of BPPS, CAPCO is working hard to secure replacement gas supply through implementing the three new sources set out in the MOU on energy cooperation signed between the HKSAR Government and the Central Government in Among the three, the Second West East Gas Pipeline (WEPII) is the earliest available source. With concerted efforts of CLP, CAPCO and PetroChina, natural gas from Turkmenistan in Central Asia will be sent via the 9,000km long WEPII network gas across China to Hong Kong, and be put into full operation at BPPS before 2013 summer. Because the current gas supply comes from only the Yacheng gas fields, the variability in the gas quality, i.e., heating value, density and composition, is relatively low. However, the future gas supply from WEP2 is actually made up of gases from different sources in Turkmenistan, Kazakhstan, regasified LNG, and potentially other available gas sources along the pipeline route. They each have different gas compositions and qualities. This creates a gas supply that may have a wide spectrum of properties and the additional challenge that we don t know when the incoming gas quality may change. In order to accommodate the new gas source, a new Gas Receiving Station (GRS) is required to receive new gas from WEPII and distribute it to the eight power generation units. On top of the new GRS, each BPPS generating unit is also retrofitted with a fuel quality management system (FQMS) that adjusts the combustion properties (Modified Wobbe Index) of the fuel in real time just upstream of the gas turbine. Before installation of a new fuel quality management system, the power station was confined to utilize gas within only +/ 5% of expected quality. After installation of the system, the upper bound could be raised to +16.7%, while the lower bound of quality tolerance remains at 5%. Two units of the plant will also be enhanced with facilities that will blend gas from the Yacheng pipeline with gas from the new pipeline in controlled ratios and send the mixed stream to the gas turbine.

11 These upgrades will enable BPPS to operate efficiently not only with the new gas from WEPII, but also with a broad portfolio of future gas sources that could range from LNG to other offshore pipeline gas. This indeed presents a new benchmark in operational flexibility for multiple fuel gas sources at a gas fired power station.

12 Latest Development and Application of Natural Gas Distributed Energy System in China Dr. Guo Jiasheng Deputy Chief Engineer of Distributed Energy Division Shanghai Aerospace Energy Co.,Ltd. Dr. Guo Jiasheng, graduated from Tongji University in 2011, majored in Heating, Ventilation and Air Conditioning & Gas Supply Engineering, He is currently the Deputy Chief Engineer of Distributed Energy Division of Shanghai Aerospace Energy Co., Ltd. His work mainly focuses on the application and technology research of the clean and efficient use of natural gas, to promote the application of natural gas distributed energy system in China. With the increase natural gas supplies, the accelerate pace of smart grid construction and the ascendant of professional services companies in China, after more than a decade in distributed energy research and demonstration, the conditions for large scale development of natural gas distributed energy in China already achievable. In recent years, natural gas distributed energy systems are widely used in China, especially with the introduction of relevant national policies, to further standardize and stimulate its application, pioneering a new model of the natural gas applications. In accordance with the concepts and features of the natural gas distributed energy system, the working principle and its application were introduced in this paper. The emerging field of distributed energy systems, such as green building, data center and industrial byproduct hydrogen applications were analyzed. The difficulties and its counter measures were introduced, which has a great significance for the promotion and development of distributed energy system.

13 The Development Overview of Natural Gas Direct fired Chiller Mr. Li Zhan Senior Customer Manager Broad Air Conditioning Co., Ltd. Natural gas direct fired chiller is a kind of LiBr absorption chiller, which being developed globally due to the different states of natural gas and electricity in different countries; the proportion of these chillers is increasing continuously in the countries which are rich in natural gas resource & having shortfall of electricity supply. The natural gas direct fired chiller has the most demand and developed fastest in China, its technology in China also exceeds other countries and playing a leading role in the global market. Further development of this chiller which uses clean energy and natural refrigerant is expecting rapidly due to the popularization of natural gas and ban of Freon.

14 Potential Technologies for Future Subsonic Transport Aircraft with LNG Propulsion Dr. John P. Gyekenyesi Structures and Materials Division Engineer NASA Glenn Research Center, Cleveland, OH, USA Dr. John P. Gyekenyesi is presently the Structures and Materials Division Engineer at the NASA Glenn Research Center at Lewis Field in Cleveland, Ohio. As Division Engineer, Dr. Gyekenyesi serves NASA on special assignments and advises management on selected programs and technologies. Currently he spends most of his time with the Structures Committee of the NASA Engineering Safety Center, where he recommends solutions to agency issues for aerospace applications. He also teaches part time graduate mechanics courses at Cleveland State University. The focus of his expertise is deformation and life prediction modeling, with emphasis on reliability, fatigue, fracture and creep rupture of advanced materials like composites, ceramics and graphite Dr. Gyekenyesi started his professional career at NASA in 1962 after receiving his BSME degree from Case Institute of Technology in Cleveland, Ohio. He worked as a mechanical design engineer for 10 years, analyzing turbine engine components, rocket engines and laboratory test equipment for durability and life under various loading and environmental conditions. In 1966, he obtained his MSME degree from Case, and subsequently, in 1972 his Ph.D. degree in Applied Mechanics from Michigan State University. From 1972 to 1982 he worked as a senior scientist, specializing in fracture studies of advanced materials, including ceramics and brittle composites. His major contribution, the CARES computer program for the reliability analysis of ceramic components, is used by more than 600 organizations, worldwide. In 1982, Dr. Gyekenyesi was promoted to Head the NASA GRC Structural Life Analysis Section, in 1989 the Structural Integrity Branch, and in 1997 he became chief of the enlarged Life Prediction Branch. Dr. Gyekenyesi lectured widely in the USA, Europe and the Far East, and has authored and co authored over 80 publications. He is a Fellow of the American Ceramic Society, and the American Society of Mechanical Engineers, ASM International, American Society for Testing and Materials, and the American Institute for Aeronautics and Astronautics.

15 In recognition of his outstanding scientific contributions, Dr. Gyekenyesi also received numerous awards. He was the recipient of NASA s first ever Software of the Year Award in R&D Magazine awarded the prestigious R&D 100 Award to him in The NASA Inventions and Contributions Board, in 2003, has estimated the value of his technical contributions to society to be in excess of many billions of dollar. Dr. Gyekenyesi is a native of Hungary whose family fled from Europe upon the invasion of their homeland by the Red Army. He has three adult sons, all mechanical engineers working in aerospace, and presently lives with his wife Iren in the Cleveland area. For several years now, NASA and its industry/academia partners studied and identified air transport designs that are considered game changers, just as the jet engine transformed everything 60 years ago. This effort was driven by soaring demand for new aircraft and the rise of projected new markets like China, India and others. Sustainability of current aviation practice and travel is being questioned, since global resources of oil based fuels, carbon emission control and irritating aircraft noise are becoming unsolved issues. There is a need to minimize environmental impact of aviation, before global warming reaches critical levels. Among the many possibilities for revolutionary change is the use of cryogenic fuels, like low pressure liquid natural gas (LNG) and liquid hydrogen (LH). Natural gas is very abundant, less expensive and most importantly burns cleanly. It is a carbon poor fuel. In addition, following the automobile industry, hybrid electric and combustion based propulsion would be possible, since both LNG and LH could be used in aircraft fuel cells to generate electricity. Also improvements and change are expected in airframe designs and engine dynamics, permitting greater engine by pass ratios and integration of distributed propulsion systems into blended hybrid wing body configurations. Short discussions of alternative fuels, natural gas powered vehicles, current LNG storing, transportation and prototype aircraft are given. Two current NASA aviation technology programs, which contain LNG powered aircraft designs, are briefly mentioned. Finally, light weight cryogenic propellant tanks, which NASA previously developed for space exploration and unmanned aircraft, are described. P.S. This presentation will not include ITAR restricted information but only previously widely disseminated public technology and concepts.