WHAT IS LIQUEFIED NATURAL GAS?

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1 WHAT IS LIQUEFIED NATURAL GAS?

2 WHAT IS NATURAL GAS? Natural gas is a colourless and odourless gas that is created from organic matter that has decayed for millions of years. Around the world, people use natural gas to heat homes, cook food and power industrial facilities and vehicles. Natural gas isn t a liquid like gasoline or oil. It is a gas like air that is trapped in rock far below the earth s surface. Natural gas is mostly made up of methane (85%-95%), but it also has small amounts of other gases like propane, which is used for barbeques, butane, which is used for lighters, water and other gases such as pentane, ethane, nitrogen and carbon dioxide. Natural gas is extracted from rock two to three kilometres underground using a drilling process called hydraulic fracturing, also known as fracking. Hydraulic fracturing has been used in North America and around the world since the 1930s and is a closely regulated and monitored activity in Canada. (See for more info). To make sure no underground gases escape into the air or shallower rock formations, the well bore is sealed to the surrounding rock with cement. In BC, all natural gas wells have steel casings and cementing to a depth of 600 metres to isolate natural gas wells from water sources. Once natural gas is collected above ground, gases like butane and propane are usually separated, and then the gas is sent through pipelines. While the gas travels through the pipeline it remains as a gas. If there ever was to be a leak in the pipe, the gas would dissipate. Once the gas reaches the processing plant, such as the one proposed for Sarita Bay, it is cooled, converting it into liquefied natural gas, also known as LNG. Current research estimates that Canada has enough natural gas reserves to meet the country s projected domestic and export needs for at least the next 100 years. 2 2

3 WHAT IS LIQUEFIED NATURAL GAS (LNG)? Liquefied natural gas, also known as LNG, is what you get when you take natural gas and cool it down to -162 degrees Celsius. Cooling the natural gas changes it from a warm gas into a very cold liquid that takes up less space. That makes it easier and safer to store and ship. As an example, by turning natural gas into LNG, you can take the same amount of natural gas that would fill 600 ships, and send it anywhere in just one ship. Once the LNG arrives overseas it is converted back into natural gas and used to heat homes, cook food and power industrial facilities and vehicles. LNG has been around for a long time. Major LNG plants, like the one proposed for Sarita Bay, began operating in the 1960s. LNG is colourless, odourless, non-corrosive, non-toxic, non-flammable and non-explosive. LNG VALUE CHAIN Northern BC & Alberta Sarita Bay 3

4 GETTING NATURAL GAS TO THE SURFACE well head soil aquifier Natural gas is brought above ground using a drilling process called hydraulic fracturing, also known as fracking, which has been used since the 1930s. Hydraulic fracturing works by drilling as far as three kilometers underground and then turning a drill horizontally so it can keep drilling along the horizontal layers of rock where the gas is trapped. The drill can turn in several different directions so only one hole needs to be drilled on the surface to reach numerous areas underground. 1 km 2 km 3 km target formation To release the natural gas that is trapped in the rock, hydraulic fracturing fluid is forced into the well bore (the hole made by the drill) at high pressure. This creates tiny cracks in the horizontal layers of rock two to three kilometers underground and holds them open so the gas can travel into the well bore and up to the surface. Hydraulic fracturing fluids are typically 99% water and sand. A small amount of chemicals are also added to reduce friction, help the fluid flow into cracks, prevent rust in the drill pipes and prevent bacteria from growing. In BC and Alberta, all chemicals used in hydraulic fracturing are reported to provincial regulators and posted at To isolate natural gas wells from water sources and make sure no underground gases escape into the air or shallower rock formations, the steel well bore (drill hole) is contained within multiple barriers of steel casing, including four casings cemented in place at the aquifer level. The multiple barriers of steel casings are cemented within each other and are set well down into the well bore to provide an impermeable seal through which hydraulic fracturing and well fluids cannot pass. BC has never had a reported incident of water contamination resulting from the hydraulic fracturing process. 4 km 4

5 NATURAL GAS PIPELINES Once captured at producing wells, natural gas is delivered to a local gas processing facility, where water, impurities and other gases are removed. The natural gas is then compressed and delivered to an LNG facility through large transmission pipelines that move the gas at up to 40 kilometers per hour. Gases such as ethane, propane, and butane, also known as natural gas liquids, can be removed from the natural gas before it is sent by pipeline to an LNG processing facility or removed at the LNG processing facility. Those gases can then be converted into liquids and sold separately from LNG. Unlike oil and bitumen, which travel in pipelines as thick black liquids, natural gas travels in pipelines as a gas. Because natural gas is lighter than air, if a pipeline were opened, natural gas would simply disperse into the air. Natural gas could be delivered to the proposed LNG facility at Sarita Bay using a combination of existing and new pipelines. The exact route, also known as a right of way, has not yet been determined. The construction of any new pipelines would involve extensive consultation with potentially affected First Nations along the pipeline right of way. Each day, approximately 420 million cubic metres (14.8 billion cubic feet) of natural gas travel through Canada s natural gas pipelines. That s enough to heat nearly 5.7 million new averagesized single detached homes in Canada each day - Canadian Energy Pipeline Association 5

6 LNG PLANTS / LIQUEFACTION LNG plants are like giant refrigerators that convert warm natural gas into very cold liquefied natural gas (-162 degrees Celsius). A natural gas liquefaction (LNG) plant consists of one or more production lines, known as trains First, small quantities of sulphur compounds, carbon dioxide, water, and other gases such as butane and pentanes are removed from the natural gas so they don t freeze and cause blockages in the cooling equipment. Then, the natural gas, which is mostly methane at that point, is cooled to -162 degrees Celsius to create LNG. That LNG is then stored at near atmospheric pressure before being loaded onto LNG carriers for shipment overseas. LNG facilities cost billions of dollars to build because they include costly equipment that has to meet high safety standards. LNG facilities also need many specialized components and large amounts of special stainless steels which can resist the effects of the extreme cold needed to turn the natural gas into LNG. As industrial sites, LNG facilities in Canada must meet strict codes regarding the design, installation, and operation of LNG facilities, as well as the production, storage and handling of LNG. These standards, codes, and regulations are established and enforced by the Canadian Standards Association, as well as federal, provincial and municipal bodies. There are currently 32 major LNG export plants in operation around the world - BC LNG Alliance. LNG cannot mix with water or soil. If spilled, it will evaporate and disperse in the air, leaving no trace. LNG STORAGE Once natural gas is converted into LNG, it is transferred into specially designed LNG storage tanks that are insulated, double-walled stainless steel tanks. Tanks vary in size but are typically around 55 meters high and 75 meters wide and can hold 250,000 cubic meters of LNG. LNG storage tanks typically feature an inner containment chamber that holds the LNG and a reinforced concrete outer chamber with multi-layered insulation and vapour and pressure safety systems. LNG storage tanks are designed in compliance with the Canadian Standards Association, which has specific standards for the design and installation of LNG storage facilities. In addition, the storage of LNG is regulated by the BC Oil and Gas Commission. Liquefied natural gas at an LNG facility is stored like liquid water in a pool rather than under pressure like propane in a BBQ tank. As a result, there is no risk of explosion. 6

7 HOW IS LNG SHIPPED OVERSEAS? Natural gas is cooled to -162 degrees Celsius so that you can take the same amount of gas that would fill 600 ships and send it overseas in just one ship, called an LNG carrier. LNG carriers are specially designed, doubled-hulled ships that are typically more than 300 metres long and carry five or more insulated, double-walled special stainless steel LNG tanks. There is typically two meters of space and insulation between the LNG tanks and the hull of the carrier. LNG carriers are loaded and unloaded through insulated pipes, and usually take one day to fill before they head out of port. Once an LNG carrier arrives overseas, the LNG is piped off the ship into LNG facilities that take the cold LNG and warm it back up into natural gas that can be used to power homes, factories and vehicles. If LNG ever did contact water, it would float on the surface, and as it warmed up, it would quickly disperse into the air. In 50 years of LNG carrier operation, and more than 80,000 voyages over 240 million kilometers, there has never been a major release of LNG from a carrier due to a collision, explosion, fire or hull failure - Canadian Centre for Energy. ENVIRONMENTAL / HEALTH BENEFITS OF LNG Hišuk cáwak (everything is connected) Around the world, and especially in Asia and the developing world, countries rely heavily on coal, oil and other fossil fuels to provide power for their growing economies and populations. That is a serious issue because, each year, air pollution from fossil fuels contributes significantly to the death of more than 400,000 people in Europe, 1.2 million people in China and two million people in the rest of the developing world. Pollution from Asia even travels across the Pacific Ocean and affects our environment in North America - World Health Organization, Burden of disease from Ambient Air Pollution for Fortunately, greenhouse gas (GHG) emissions from natural gas are approximately 30 per cent cleaner than oil and 45 per cent cleaner than coal. Also, burning natural gas does not emit particulates into the air, while burning coal emits huge quantities of particulates into the air - Natural Resources Canada. By using cleaner burning natural gas from BC, countries in Asia can significantly reduce their use of coal and oil in their homes, vehicles and factories. That will improve the health of people and the environment in Asia, as well as the health of people and the environment here in British Columbia. 7

8 WE WANT TO HEAR FROM YOU We welcome feedback via the Steelhead LNG and Huu-ay-aht websites and social media channels, or by contacting Steelhead LNG and the Huu-ay-aht government directly. Huu-ay-aht First Nations Phone: Steelhead LNG Phone: