Mini-to-Medium Scale LNG A Profitable & Environmentally Sustainable Solution for Flared or Stranded Gas Matt BARCLAY Director, Energy Resources Group
Presentation overview The Agenda Introduction to Prometheus Energy Small-Scale LNG Production from Flare Gas or Non-Conventional Sources Applicable Purification & Liquefaction Requirements Why Small-to-Medium Scale Projects Work & What s Driving the Market Niche LNG Market Opportunities & Future Demand Sources Summary & Conclusions
Prometheus Energy Company Company Background Vertically Integrated LNG Production and Supply Company Design, Own, Operate LNG Project Development Capabilities LNG Supply to Vehicle, Industrial and Utility Customers Non-Traditional LNG Supply Sources Landfills, Coalmines, Associated Gas Wells & Digesters Corporate Offices in Seattle & London Publicly Listed on London Stock Exchange (PEC.L)
What is small-to-medium scale LNG? An Overview of the Existing Market Numerous Small/Medium Scale LNG plants in operation around the world Plants sized for 2.5-100M scf/d Produce between 1/50th and 1/500th the capacity of global-scale liquefaction facilities Niche Market Supply Focus Utility Peakshaving Over 100 production/storage sites in US Other LNG Production Sources NRU s and/or Liquid Helium Plants Non-Conventional LNG Plants (Prometheus)
Non-conventional Gas Source Comparision A Comparision of Component Concentations and Other Properties Component Pipeline Gas Associated or Stranded Well Gas Digester or Wastewater Biogas Methane (CH4), % 90-99 75-99 50-65 35-55 Ethane + Propane, % 1-5 2-15 0 0 Water Vapor, % <0.01 1-3 1-10 1-10 Carbon Dioxide, % 0-5.01-10 35-50 25-45 Nitrogen, other inerts, % 0-2 1-40 0-5 0-20 Landfill Gas Condensable hydrocarbons (NMOCs) ppmv 0 1-1000 250-3,001 250-3,000 Chlorine in organic compounds, micrograms per liter 0 0 1-100 250-3,000 Hydrogen sulfide, ppm 0-15 0-300 100-3000 5-600 Higher heating value, (btu/ft3) 950-1,050 760-1150 505-655 350-550 Gas Source Pressure, (psig) 80-1000 50-1200 1-2 1-2
Technologies For Gas Purification A Suite of Technologies Exist for Gas Clean Up Trace Contaminants Filtration Chilling; Phase change Absorption Water Chemical Solutions Liquid CO 2 Adsorption Activated Carbon/Zeolites Batch or Regenerative TSA PSA CO 2 Removal Water scrubbing Chemical Absorption Amines of various types Cold methanol Adsorption (PSA) Membrane Cryogenic Distillation using ethane Freezing with sublimation Nitrogen Removal Phase equilibria Batch or dynamic
Distributed Scale LNG Production A Solution for Otherwise Flared or Stranded Gas
Bowerman Landfill Gas-to-LNG Project Project Application: A 11M Scf/Day Flaring Reduction Project
Existing LNG Vehicle Markets The World LNG Vehicle Markets Continue to Grow Refuse Mass Transit Paratransit & Shuttle Vans Heavy Duty Fleet
Other Niche LNG Market Opportunites Existing Applications for LNG Utilization Propane & Heating Oil Displacement Pipeline Outage Utility Peak-Load Shaving Residential supply
Future LNG Demand Prospects Future Utilization in Heavy Fuel Demand Markets Source: Tupolev
Comparision Of Alternative Fuel Prices Economics Ultimately Drive the Market $4.00 DOE - Alternative Fuel Price Report, June 2006 $3.50 Price Per Gallon Equivalent $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 46% 19% 47% 59% 41% 40% 53% $0.00 Gasoline CNG Propane Ethanol (E85) (GGE) (GGE) (GGE) Prometheus Retail LNG with Federal Excise Tax Included Other Alternative Fuel Retail Price No. 2 Diesel Biodiesel (B20) Biodiesel (B99-100) (GGE) (DGE) (DGE) (DGE) GGE: Gasoline Gallon Equivalent DGE: Diesel Gallon Equivalent
Air Quality Benefits Of Alternatve Fuel Use Reductions in Ground Level Ozone Emissions can be Substantial Ozone Forming Emission Reduction % by Fuel Type and Pollutant 20% Biodiesel 20 Biodiesel 100 +10% CNG, LNG 0% +2% -20% -15% -20% NO x -40% PM -60% -47% -48% -53% CO -80% -100% -85% -89% Source: 2005 NREL Technical Report 540-36355; Puget Sound Clean Air Agency Biodiesel Fact Sheet
LNG & Related Green House Gas Reductions The Use of LNG Can Lead to Lower Greenhouse Gas Emissions While natural gas vehicles do emit minor amounts of methane, this slight amount of unburned methane is more than offset by a substantial reduction in carbon dioxide emissions compared to other fuels Emissions of CO 2 & CO 2 Equivalent from Model Year 2004 Transit Buses (grams/mile traveled) 3500 3000 3295 When compared to diesel, natural gas transit buses are shown to reduce greenhouse gas emissions by as much as 37%. 2500 2000 1913 2089 1500 1000 500 0 + 176 = CO 2 Emissions CO 2 Equivalent of Unburned Methane Emissions Net CO 2 Equivalent Emissions from 2004 Natural Gas Transit Bus CO 2 Emissions from 2004 Diesel Transit Bus Source: 2005 NREL Technical Report 540-36355
Bowerman LNG Project Emissions Benefits The Beneficial Use of Flared Gas can have Substantial Environmental Benefits Emission Reductions and Environmental and Energy Benefits for Frank R. Bowerman Landfill Gas-to-LNG Project 7,600 standard cubic feet per minute (scfm) Total Equivalent Emissions Reduced MMTCO 2 E/yr million metric tons of carbon dioxide equivalents per year [Total = Direct + Avoided] tons CH 4 /yr tons of methane per year tons CO 2 /yr tons of carbon dioxide per year 0.8995 42,242 104,461 Equivalent to any one of the following annual benefits: Environmental Benefits Removing emissions equivalent to vehicles: 173,957 Planting acres of forest: 247,888 Preventing the use of barrels of oil: 2,109,687 Displacing the use of gallons of gasoline: 99,155,286
Presentation Conclusion And Key Findings Where Does the Market Go from Here? Continued strong world-wide growth of LNG supply & demand Market growth driven by economic & environmental factors Growing use of LNG in the transportation fuel market New, much larger NGV markets for 400+ HP NG engines New global role for LNG produced from stranded or waste gas Look for over 100 small/medium LNG projects to develop in next 10 years and for non-traditional sources of supply to play a significant role