STRUCTURE OF NG .

LNG & CNG

MARKET
UNIT 8
 Natural Gas Composition
Typical Range
(Mole (Mole
Component Percent) Percent)
Hydrocarbon Methane (C1) 92.77 83.74 – 98.22
s
Ethane (C2) 3.36 0.52 – 7.64
Propane (C3) 1.51 0.18 – 4.74
Iso-Butane (i-C4) 0.41 0.05 – 1.10
Normal Butane (n-C4) 0.47 0.06 – 1.63
Iso-Pentane (i-C5) 0.19 0.03 – 0.50
Normal Pentane (n-C5) 0.13 0.00 – 0.42
Hexane (C6) 0.27 0.09 – 0.78
Inerts Nitrogen (N2) 0.30 0.12 – 0.91
Helium (He) Trace 0.00 - 0.02
Impurities Carbon Dioxide (CO2) 0.59 0.13 - 1.86
Hydrogen Sulfide (H2S) Trace 0.00 - 0.10
Oxygen (O2) Trace 0.00– 3.00
Water (H2O) Trace 0.00 - 0.01

Source: Cheniere
Monetizing Global Natural Gas Resources
What is CNG, LNG, NGLs, LPG, and GTL?
Major Natural Gas Trade Movements ( Source BP® Statistics )

BP Statistical Review of World Energy 2004

New Trade Routes Are Emerging Source BP®
Statistics

Existing
ExistingTrade
Trade
Prospective
ProspectiveTrade
Trade
CNG CARGO CONTAINMENT SYSTEM : CNG Market
 Comparison of CNG and LNG
In Marketing Angle
Size of investment for a 500MMscf/d plant
CNG LNG
Reserves: Modest Large
Production cost: MM$30-40 MM$750-2000*
Transportation costs: MM$230/ship MM$160/ship
Unloading costs: MM$16-20 MM$500-550
Total investment: $1-2 billion** $2-3 billion**

* Depending upon the location of the production site

** Depending upon the number of ships used for the transport of the gas.
 What Is LNG?

Typical LNG Composition

• LNG is liquid form of the natural gas
used for cooking, heating and power
generation.
• The liquefaction process removes Methane Others

almost all “contaminants” 95% 5%

• LNG must meet higher and lower

limits on energy content
• LNG composition has traditionally LNG COMPOSITION (Mole Percent)
been set by markets in Japan, SouthSource Methane Ethane Propane Butane Nitrogen

Korea, and Taiwan Alaska 99.72 0.06 0.0005 0.0005 0.20

• LNG also is used in the U.S. as an Baltimore Gas & Electric

Algeria 86.98
93.32
9.35
4.65
2.33
0.84
0.63
0.18
0.71
1.01
alternative fuel for public New York City 98.00 1.40 0.40 0.10 0.10

transportation systems. San Diego Gas & Electric 92.00 6.00 1.00 - 1.00

Source: Liquid Methane Fuel Characterization and Safety Assessment Report . Cryogenic Fuels. Inc. Report
No. CFI-1600, Dec. 1991
 Typical LNG Value Chain

EXPLORATION REGASIFICATIO
LIQUEFACTIO
& SHIPPING N
N
PRODUCTION & STORAGE
$1.0 - $2.5 $1.5 – 2.0 $0.8 - $2.3
$0.5 - $1.0 billion
billion billion billion
$0.8- $0.4-
$0.5-
$1.20/MMBt $1.0/MMBt $0.3-$0.5/MMBtu
$1.0/MMBtu
u u
TOTAL = $3.7 - $8.8 billion or $2.00 - $4.70/MMBTU
Greatest variability is in upstream feedstock for liquefaction and shipping distance.

Sources: Industry with BP academic use

THANKS