Japan s LNG Utilization and Environmental Efforts

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1 Japan s LNG Utilization and Environmental Efforts Toshihide KANAGAWA Deputy General Manager Production Technology Sec. Gas Technology Dept. The Japan Gas Association

2 Polar Alaska (November 4, 1969)

3 Contents 1. Japan s energy scene and LNG 2. LNG terminals in Japan and its domestic chain 3. Countermeasures for environmental issues in LNG terminals

4 Japan s Dependence on Imported Energy (2004) High dependence on imported energy resources 18% 82% Source: Energy Balances of OECD Countries , IEA *IEA defines nuclear power as indigenous energy.

5 Trend of Primary Energy Supply in Japan Total primary energy supply in Japan continues to increase. (MTOE) Source: IEEJ/EDMC, Handbook of Energy & Economic Statistics in Japan 2007

6 LNG Consumption in Japan (as of 2005) Power Generation 65% City Gas 35% Source: The Institute of Energy Economics, Japan

7 Mil. m3 Trend of Feedstock of City Gas

8 The Position of Natural Gas in Japan s Energy Policy Basic Energy Plan (Mar. 07) Promote the introduction and expanded use of natural gas Energy Supply-Demand Outlook for 2030 Increase the overall share of natural gas by shifting to decentralized power sources (13% in 2000 to 16% in 2030) The Kyoto Protocol Targets Achievement Plan (Apr. 05) Natural gas is a clean energy source, which has relatively small environmental impact. Accelerate the shift to natural gas while maintaining a balance with other energy sources (Mar. 05)

9 Contents 1. Japan s energy scene and LNG 2. LNG terminals in Japan and its domestic chain 3. Countermeasures for environmental issues in LNG terminals

10 Domestic LNG Chain

11 LNG Receiving Terminals in Japan

12 Newly Constructed LNG Facilities LNG Terminals for Ocean Tankers Sakai (2006), Mizushima (2006) LNG Terminals for Coastal Tankers Takamatsu (2003), Okayama (2003), Hakodate (2006), Hachinohe (2006) LNG Satellite Terminals Increasing by approx. 10 terminals/year Tsu, Sowa, Asahikawa, Kochi, etc.

13 Tsu LNG Satellite Terminal Trains LNG Storage Tanks LNG Vaporizers Capacity 360 kl 5 t/h 3 t/h Other Facilities: odorizing equipment, emergency generator Units Tsu

14 Contents 1. Japan s energy scene and LNG 2. LNG terminals in Japan and its domestic chain 3. Countermeasures for environmental issues in LNG terminals

15 Global Warming Countermeasures by Industry Keidanren Voluntary Action Plan on the Environment Annual check & review by the government Gas industry has also established carbon dioxide reduction goals

16 Countermeasures for Environmental Issues at Receiving Terminals 1. Effective utilization of cryogenic energy Cryogenic power generation Air liquefaction separation plants (utilization of cryogenic energy) 2. Development of new LNG facilities with less energy consumption Newly developed open-rack type LNG vaporizer BOG liquefaction using LNG cold storage Highly-efficient seawater pump (VVVF, variable vane type) 3. Reduction of greenhouse gas emissions by ingenious operation Using ORV for the base load and SCV for peak shaving Reduction of methane emission by accumulating improvements Reduction in CO 2 and SO x emissions of LNG tankers at berth

17 Cryogenic Power Generation Negishi Terminal Himeji Terminal

18 Cryogenic Power Plants in Japan

19 Air Liquefaction Separation Plant

20 Countermeasures for Environmental Issues at Receiving Terminals 1. Effective utilization of cryogenic energy Cryogenic power generation Air liquefaction separation plants (utilization of cold energy) 2. Development of new LNG facilities with less energy consumption Newly developed open-rack type LNG vaporizer BOG liquefaction using LNG cold storage Highly-efficient seawater pump (VVVF, variable vane type) 3. Reduction of greenhouse gas emissions by ingenious operation Using ORV for the base load and SCV for peak shaving Reduction of methane emission by accumulating improvements Reduction in CO 2 and SO x emissions of LNG tankers at berth

21 Newly Developed Open-rack Type LNG Vaporizer - SUPERORV - and - HiPerV -

22 BOG Liquefaction Using LNG Cold Storage

23 Highly-efficient Seawater Pump Top: Motor for 780kW seawater pump Bottom: VVVF unit Top: 940kW seawater pump Bottom: Variable vane component

24 Countermeasures for Environmental Issues at Receiving Terminals 1. Effective utilization of cryogenic energy Cryogenic power generation Air liquefaction separation plants (utilization of cryogenic energy) 2. Development of new LNG facilities with less energy consumption Newly developed open-rack type LNG vaporizer BOG liquefaction using LNG cold storage Highly-efficient seawater pump (VVVF, variable vane type) 3. Reduction of greenhouse gas emissions by ingenious operation Using ORV for the base load and SCV for peak shaving Reduction of methane emission by accumulating improvements Reduction in CO 2 and SO x emissions of LNG tankers at berth

25 Contents 1. Japan s energy scene and LNG 2. LNG terminals in Japan and its domestic chain 3. Countermeasures for environmental issues in LNG terminals

26 Communication with Local Communities at PR Centers

27 Communication with Local Communities

28 Japan s LNG Utilization and Environmental Efforts END Toshihide KANAGAWA Deputy General Manager Production Technology Sec. Gas Technology Dept. The Japan Gas Association

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