Report No. 103 LNG AND METHYL FUELS LNG-- --------------------- by GEORGE T. STEVENIN METHYL FUELS---- by GEORGE E. HADDELAND September 1976 A private report by the PROCESS ECONOMICS PROGRAM STANFORD RESEARCH INSTITUTE MENLO PARK, CALIFORNIA
CONTENTS 1 INTRODUCTION........................ 1 PART A--LIQUEFIED NATURAL GAS.................. 3 2 SUMMARY... Cost Estimates....................... 7 3 INDUSTRY STATUS...................... 11 Major Markets... 11 Consumption Pattern... 11 Production and Growth Rates... 11 Production Capacity... 13 4 CASCADE REFRIGERANT CYCLE... Review of Processes... Introduction.... Discussion of Cascade Refrigerant Patents... Process Description... Process Discussion.... Cost Estimates.... Capital Costs... Production Costs.... 15 15 15 18 21 26 27 27 31 5 MIXED REFRIGERANT CYCLE.................. 45 Review of Processes........ 45 Introduction......... 45 Discussion of Mixed Refrigerant Patents........ 45 Mixed Refrigerant Processes Offered for License..... 49 Air Products and Chemicals......... 49 Technip........ 50 J. F. Pritchard and Company........ 50 Linde (LOT0 PRO)......... 51 Phillips......... 52 Pullman-Kellogg........ 52 Other Plants......... 52 Process Description........ 53 Process Discussion......... 57 Cost Estimates......... 59 Capital Costs........ 59 Production Costs......... 65 Vii
CONTENTS 6 LNG TRANSPORTATION..................... 75 Introduction.... 75 Transportation Requirements... 75 Requirements Discussion... 76 Cost Estimates... 77 Capital Costs... 77 Transportation Cost... 77 7 LEG REGASIFICATION Introduction.... 85 Process Description... 85 Process Discussion.... 88 Cost Estimates.... 88 Capital Costs... 88 Production Costs.... 90 Production Costs Discussion... 98 PART B--METHYLFUEL....................... 99 8 METHYL FUEL... 101 Introduction.... 101 summary... 101 Methyl Fuel Uses.... 101 Process... 102 Methyl Fuel Capital and Operating Costs... 102 Alternative Methyl Fuel Applications.... 104 Methyl Fuel... 105 Methyl Fuel Applications.... 105 Boiler Fuel... 105 Automotive Fuel... 106 Status of Applications.... 107 Process Description... 107 Process Discussion.... 114 Cost Estimates.... 115 Capital Investment.... 115 Production Costs.... 116 Shipping Costs.... 117 Upgrading Methyl Fuel to Chemical Methanol.... 118 Conclusion.... 118 viii
CONTENTS APPENDICES, REFERENCES, AND FLOW SHEETS FOR PARTS A AND B.... 133 APPENDIX A DESIGN AND COST BASIS... 135 APPENDIX B PHYSICAL AND THERMODYNAMIC DATA... 139 APPENDIX C HANDLING AND SAFETY.... 141 CITED REFERENCES... 143 ix
4.1 Liquefaction of Natural Gas by a Cascade Refrigerant Process Process Flow Sheet...................... 149 4.2 Effect of Liquefaction Plant Capacity on Total Fixed Capital Investment for a Cascade Refrigerant Process..... 35 4.3 Effect of Liquefaction Plant Capacity on Production Cost for a Cascade Refrigerant Process............ 43 5.1 Liquefaction of Natural Gas by a Mixed Refrigerant Process Process Flow Sheet...................... 153 5.2 Effect of Liquefaction Plant Capacity on Total Fixed Capital Investment for a Mixed Refrigerant Process...... 66 5.3 Effect of Liquefaction Plant Capacity on Production Cost for a Mixed Refrigerant Process............. 73 6.1 Effect of liquefaction Plant Capacity on Transportation Cost... 83 7.1 Receiving Terminal and LNG Vaporization Process Flow Sheet...................... 155 7.2 Effect of Liquefaction Capacity on Receiving and Regasification Total Fixed Capital..................... 92 7.3 Effect of Liquefaction Plant Capacity on Receiving and Regasification Cost..................... 97 8.1 Process Flow Sheet...................... 157 8.2 Energy Distribution per 5,000 tpd Methyl Fuel Train..... 113 xi
TABLES 2.1 LNG Shipped to the United States or Japan from a Mixed Refrigerant Liquefaction Plant in a Remote Area Summary of Economics................... 3.1 Worldwide LNG Plants Operating, Under Construction, or Planned, Listed by Licenser................ 4.1 Natural Gas Liquefaction (Cascade System) Summary of Patents... 4.2 Cascade Refrigerant Cycle Process Stream Flows................... 4.3 Cascade Refrigerant Cycle Refrigerant Stream Flows................. 4.4 Cascade Refrigerant Cycle Total Capital Investment--Indices 250/250 4.5 Cascade Refrigeration Cycle Total Capital Investment--Indices 325/250 4.6 Cascade Refrigerant Cycle Total Capital Investment--Indices 450/250 4.7 Cascade Refrigerant Cycle Major Equipment and Utilities Summary........... 4.8 Cascade Refrigerant Cycle Production Costs, 1976--Indices 250/250 4.9 Cascade Refrigerant Cycle Production Costs, 1976--Indices 3251250 4.10 Cascade Refrigerant Cycle Production Costs, 1976--Indices 450/250 9 12 16 22 25 28 29 30 32 36 37 38 Xiii
TABLES 4.11 Cascade Refrigerant Cycle Production Costs, 1976--Indices 250/250 4.12 Cascade Refrigerant Cycle Production Costs, 1976--Indices 325/250 4.13 Cascade Refrigerant Cycle Production Costs, 1976--Indices 450/250 5.1 Natural Gas Liquefaction (Mixed Refrigerant Cycle) Summary of Patents... 5.2 Mixed Refrigerant Cycle Process Stream Flows................... 5.3 Mixed Refrigerant Cycle Refrigerant Stream Flows................. 5.4 Mixed Refrigerant Cycle Total Capital Investment--Indices 250/250 5.5 Mixed Refrigerant Cycle Total Capital Investment--Indices 325/250 5.6 Mixed Refrigerant Cycle Total Capital Investment--Indices 450/250 5.7 Mixed Refrigerant Cycle Major Equipment and Utilities Summary........... 5.8 Mixed Refrigerant Cycle Production Costs, 1976--Indices 250/250 5.9 Mixed Refrigerant Cycle. Production Costs, 1976--Indices 325/250 39 40 41 46 54 56 60 61 62 63 67 68 xiv
TABLES 5.10 Mixed Refrigerant Cycle Production Costs, 1976--Indices 450/250 5.11 Mixed Refrigerant Cycle Production Costs, 1976--Indices 250/250 5.12 Mixed Refrigerant Cycle Production Costs, 1976--Indices 325/250 5.13 Mixed Refrigerant Cycle Production Costs, 1976--Indices 4501250 6.1 LNG Transportation--4,000 Miles (250 Million scfd).... 6.2 LNG Transportation --4,000 Miles (1 Billion scfd)..... 6.3 LNG Transportation--6,600 Miles (250 Million scfd).... 6.4 LNG Transportation--6,600 Miles (1 Billion scfd)..... 7.1 T.NG Regasification Process Stream Flows................... 7.2 LNG Receiving Terminal Major Equipment and Utilities Summary....,"...... 7.3 LNG Receiving Terminal Total Capital Investment--Indices 220/220 (232 Million scfd).................... 7.4 LNG Receiving Terminal Total Capital Investment--Indices 250/250 (237 Million ecfd).................... 7.5 LNG Receiving Terminal Production Costs--Indices 220/220 (232 Million scfd).................... 7.6 LNG Receiving Terminal Production Costs--Indices 220/220 (927 Million scfd).................... 69 70 71 72 78 79 80 81 86 87 89 91 93 94 xv
TABLES 7.7 7.8 8.1 8.2 8.3 LNG Receiving Terminal Production Costs--Indices 250/250 (238 Million scfd).................... 95 LNG Receiving Terminal Production Costs--Indices 250/250 (948 Million scfd).................... 96 Capital and Operating Cost Summary for Methyl Fuel Plants........................ 103 Major Equipment and Utilities Summary........... 110 Stream Flows....................... 112 8.4A Total Capital Investment--Saudi Arabian Coast....... li9 8.4B 8.4C 8.5A 8.5B 8.5C 8.6' 8.7 Total Capital Investment--Iranian Coast.......... 121 Total Capital Investment--U.S. Gulf Coast......... 123 Production Costs--Saudi Arabian Coast........... 125 Production Costs--Iranian Coast.............. 127 Production Costs--U.S. Gulf Coast............. 129 Methyl Fuel Ocean Transportation, Storage, and Transfer....................... 131 Additional Cost to Upgrade Methyl Fuel to Chemical Grade Methanol...................... 132 xvi