LNG as a fuel Get ready for the future - today

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1 LNG as a fuel Get ready for the future - today Johan Knijp 26 September 2017 Blue Corridor 2017 Rally 1 DNV GL September 2017 SAFER, SMARTER, GREENER

2 Introduction Johan Knijp Head of Section, Fuel and Energy Transition DNV GL - Oil & Gas Direct: Head of Fuel and Energy Transition Natural Gas, Biogas, LNG, Hydrogen, Methanol, DME, Assessment of Clean Energy Technologies Coordinator of DNV GL s European sslng network Location: DNV GL Groningen, Netherlands Renewable energy technology and gas laboratory Multiphase flow meter calibration laboratory 2

3 Introducing new fuels in new markets. 3 Source :

4 Matching Fuels & Combustion equipment Fuels Engines/burners Natural gas Liquid Natural Gas (LNG) Liquid Petroleum (LPG) Compressed Natural Gas (CNG) Compressed biogas (bio-cng) Biogas Hydrogen bio-methanol Bio-ethanol Di-Methyl Ether (DME).. Industrial- and domestic equipment Marine Truck Cars & Busses Fuel variation results in changes in combution behavior in end-use equipment Response performance end-use equipment to fuel variations depends upon type of end-use equipment 4

5 Example of our work: Towards well-founded standards for siloxanes in bio-cng An interesting and growing market for (bio)gas is the automotive market that uses CNG as a transport fuel Biogases can contain traces of siloxanes (from shampoo, anti foaming, etc.), which can cause mechanical problems to end-user appliances including gas engines. Silica (SiO 2 ) is formed during combustion. Research program (2.5 years) to address the effects of the impact of silica deposition on the most critical parts of CNG cars. DNV GL automotive engine tests results will be used to develop an European standard for silicon containing components in biogas (CEN TC 408) The results will facilitate the smooth introduction of biogas in this market, realistic siloxane concentrations allowed in biogas are therefore required Before After 5

6 LNG as a fuel is growing rapidly 6

7 LNG keeps on growing in maritime industry There are currently 228 confirmed LNG ship fuel projects, and 93 additional LNG ready projects Updated 1 September 2017 Excluding LNG carriers and inland waterway vessels 7 Source: DNV GL LNGi Portal

8 Gaining market share rapidly for trucking as well.. > 1500 truck > 120 LNG fuelling stations Total number of refuellings > Total amount of LNG sold > kg Total distance > km 8 Source: NGVA / Blue Corridors project

9 Introduction to LNG 9

10 Liquefied Natural Gas (LNG) Liquefied Natural Gas (LNG), is natural gas that has been converted to a liquid state by cooling to below -163 C (and ambient pressure) As a liquid is takes up 600 times less volume than natural gas Shipped in specialized LNG carriers, and in special heat insulated tanks by rail or road transportation. Attractive alternative to traditional transportation fuels such as diesel and heavy fuel oil. Lower CO 2 emissions Free of Sulphur and particulates Compared to diesel engine much quieter, which allows 24/7 inner-city distribution 10

11 Liquefied Natural Gas (LNG) CO 2, H 2 S, heavy hydrocarbons Natural gas (Field production) Purification Liquefication (cooling to -163 C) Methane Ethane Propane Butane Heavy hydrocarbons (C4+) Nitrogen Carbondioxide H2S. Methane Ethane Propane Butane Nitrogen 11

12 Large scale LNG 12

13 LNG expected to be the "glue" linking global gas markets 13

14 Downstream LNG / LNG as a Fuel 14 Source: Primagaz

15 LNG has significant quality variations across the globe. LNG is produced at different locations around the world. Due to differences in natural gas sources, production technologies and the target markets for the LNG, the composition may vary substantially Origin Nitrogen Methane Ethane Propane Butane N 2, % CH 4, % C 2 H 6, % C 3 H 8, % C 4 H 10, % Australia Darwin Algeria Skikda Algeria Arzew Brunei Egypt Idku Indonesia Badak Indonesia Tangguh Libya Nigeria USA - Alaska Bio LNG ~

16 The quality of commercially available LNG varies significantly across the globe Yemen USA - Alaska Trinidad Russia Sakhalin Qatar Peru Oman Norway Nigeria Malaysia Libya Indonesia Tangguh Indonesia Badak Indonesia - Arun Equatorial Guinea Egypt Damietta Egypt Idku Brunei Algeria Arzew Algeria Bethioua Algeria Skikda Australia Darwin Australia NWS Density, kg/m 3 Yemen USA - Alaska Trinidad Russia Sakhalin Qatar Peru Oman Norway Nigeria Malaysia Libya Indonesia Tangguh Indonesia Badak Indonesia - Arun Equatorial Guinea Egypt Damietta Egypt Idku Brunei Algeria Arzew Algeria Bethioua Algeria Skikda Australia Darwin Australia NWS 35,0 37,0 39,0 41,0 43,0 45,0 Lower calorific value, MJ/m 3 (n) 12% variation 17% variation 16

17 Challenges of delivering fit-for-purpose gas for end users LNG has significant quality variations across the globe..where gas end-use is a local market with specific composition requirements Yemen USA - Alaska Trinidad Russia Sakhalin Qatar Peru Oman Norway Nigeria Malaysia Libya Indonesia Tangguh Indonesia Badak Indonesia - Arun Equatorial Guinea Egypt Damietta Egypt Idku Brunei Algeria Arzew Algeria Bethioua Algeria Skikda Australia Darwin Australia NWS 38,1 35,9 36,9 39,0 39,1 38,6 39,7 38,4 39,1 39,4 41,8 36,9 40,3 39,0 37,8 36,7 37,6 40,3 39,2 38,9 38,1 40,0 40,9 17% 35,0 37,0 39,0 41,0 43,0 45,0 Lower calorific value, MJ/m 3 (n) Different calorific values based on domestic appliances 17

18 Example January 2016: LNG import on hold due to not meeting specifications We are not buying gas from the U.S. at the moment, because the gas they are offering at the moment does not meet specifications needed for our gas distribution system U.S. LNG is currently much more calorific than the Russian gas for which Lithuania s current gas transmission system has been built 18

19 Weathering of LNG due to boil-off in LNG distribution chain A key issue in LNG transportation is the generation of Boil-Off Gas (BOG). The boil-off of the volatile components in the LNG stored leads to a change in composition of LNG Component Nitrogen -196 Methane -162 LNG -163 Ethane Boiling point ( C) Propane -42 Boil-off rate depends on: 1. Gas composition of the LNG 2. Temperature of the LNG 3. Heat transfer rate to the LNG through the tank 4. Residence time of LNG in the chain 5. Operating pressure 6. Motion Butane

20 LNG Quality (Methane Number) Risk of delivering off spec LNG in sslng value chain Supply Transport End use Loading/storage/unloading Loading/storage/unloading Sourcing BOG BOG BOG BOG Engine Specification Minimum Methane number end-user Time / place Risk of delivering off- spec gas 20

21 LNG fuel issues Quality control and billing issues boil-off during transport and storage composition changes over time Substantial variations in density and heating value Issues related to variations in engine performance with changes in fuel quality (particularly engine knock) Variation in composition w.r.t. major (hydrocarbon) species different combustion performance (power, efficiency, emissions) Different engine types/adjustment may lead to different behaviour regarding knock 21

22 LNG as a transportation fuel 22

23 Characterization for LNG, gasoline and diesel Gasoline DIESEL Methane number Octane number Cetane number Currently : No European or world-wide standard for LNG as a fuel (CEN /ISO) 23

24 Determination of methane number is critical to safeguard the vehicle s safety (only relevant for Otto engines) The knock resistance of LNG is characterized by the methane number, which is similar to the octane number used in gasoline engines The global variation in methane number is more than 32 points The occurrence of engine knock leads to significant loss of performance (power reduction), engine shutdown and potential damage Knowledge of the knock characteristics of LNG fuels is crucial for suppliers and traders to provide reliable and efficient products and for the end user to secure optimal engine operations. DNV GL developed a fundamentally correct method to characterize gaseous fuels (PKI Methane Number) Yemen USA - Alaska Trinidad Russia Qatar Peru Oman Norway Nigeria Malaysia Libya Indonesia Indonesia Indonesia - Equatorial Egypt Egypt Idku Brunei Algeria Algeria Algeria Australia Australia Methane Number, PKI method 32 point variation in Methane number 24

25 Matching fuels and engines High performance and high efficiency (automotive) engines require high methane number (similar to Octane Number fuel) Engine spec examples: Engine Min. MN Iveco Cursor 9 NG 70 Wärtsilä DF50 80 Yemen USA - Alaska Trinidad Russia Qatar Peru Oman Norway Nigeria Malaysia Libya Indonesia Indonesia Indonesia - Equatorial Egypt Egypt Idku Brunei Algeria Arzew Algeria Algeria Skikda Australia Australia NWS C9NG DF Methane Number, PKI method If Methane Number is fixed at 80, almost 90 % of LNG downloaded in Europe does not match fuel specification, except if this is previously treated (not easy and expensive). 25

26 Key performance characteristic: Knock resistance of LNG Now available from DNV GL: the PKI Methane Number calculator to characterize the knock resistance of LNG Knock resistance A characteristic of the LNG; its tendency or resistance to cause engine knock Maintain performance The occurrence of engine knock can lead to loss of performance, engine shutdown and damage PKI Methane Number The correct characterization of knock resistance guarantees that LNG and engine are matched for optimum operation 26

27 LNG as a fuel - PKI Methane Number Calculator Screenshot Together with the partners below DNV GL is developing dedicated Methane Number algorithms for different engine classes for LNG (Truck, Marine and CHP engines): 27

28 Guidance on fiscal and quality measurements for LNG bunkering With reference to Recommended Practice for LNG Bunkering - DNVGL-RP-G105: DNV GL 26 September 2017

29 The quality of commercially available LNG varies significantly across the globe Yemen USA - Alaska Trinidad Russia Sakhalin Qatar Peru Oman Norway Nigeria Malaysia Libya Indonesia Tangguh Indonesia Badak Indonesia - Arun Equatorial Guinea Egypt Damietta Egypt Idku Brunei Algeria Arzew Algeria Bethioua Algeria Skikda Australia Darwin Australia NWS 35,0 37,0 39,0 41,0 43,0 45,0 Lower calorific value, MJ/m 3 (n) 2-3% variation 17% variation 29 DNV GL 26 September 2017

30 Determination of the energy content To determine the energy content the mass and calorific value must be known. Volume Density Composition Mass Calorific Energy content DNV GL s RP describes several options to determine the mass directly or indirectly by using the volume and density. The calorific value is determined based on the composition. The RP describes several options to determine the composition. Source: DNV GL G105: DNV GL updated Recommended Practice for LNG Bunkering (Oct 2015) 30 DNV GL 26 September 2017

31 Parameters and characteristics for determining energy content and methane number Source: DNV GL G105: DNV GL updated Recommended Practice for LNG Bunkering (Oct 2015) 31 DNV GL 26 September 2017

32 The RP G105 provides guidance on development and implementation of a measurement system for QUALITY and QUANTITY of LNG The measurement system ensures transparency in billing and safeguards both safety and fitness for purpose for using LNG as a fuel. The energy content and essential properties of the transferred LNG shall be determined. The receiving ship must be able to rely on the specification of fuel quality for safe use. The cost associated with implementing a measurement system should be proportional to the financial risk involved. 32 DNV GL 26 September 2017

33 LNG as a fuel Get ready for the future - today SAFER, SMARTER, GREENER 33