Natural Gas Technologies

1
Natural Gas Technologies For The
Future Melanie Kenderdine Gas Technology
Institute Energy and Nanotechnology Strategy
for the Future Houston, Texas May 2-4, 2003
2
Drivers for Natural Gas Demand

• Resource Abundance
• Overall Growth in Energy Demand
• Geopolitics of Oil
• Inexpensive Power Generation
• Environmental Benefits

3
World Gas Consumption By Region, 1999 2020
Eastern Europe
North America
Ind. Asia
Dev. Asia
W. Europe
Middle East
Africa
C./S. America
1999 2020 est.
Source EIA, International Energy Outlook, 2002
4
World Gas Reserves By Region
36
36
Eastern Europe
North America
5
W. Europe
3
8
Middle East
Asia Oceania
4
8
C./S. America
Africa
79 of the worlds gas reserves are in 12
countries
Source EIA, International Energy Outlook, 2002
5
World Coal/Gas/Oil Consumption By Region,
1999/2020
Eastern Europe
North America
Ind. Asia
W. Europe
Middle East
Dev. Asia
C./S. America
Africa
Source EIA, International Energy Outlook, 2002
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World Oil/Gas/Coal Reserves By Region
Geopolitical Issues In
Focus
57
36
27
North America
26
36
18
7
30
Eastern Europe
W. Europe
5
9
3
8
3
Asia Oceania
8
Middle East
4
2
8
C./S. America
6
6
Africa
Coal
Gas
Source EIA, International Energy Outlook, 2002
Oil
7
Global Electricity Consumption 75 Demand
Increase by 2020
8
Economics of New Baseload Electric Plant Costs
Are Driving US Gas Demand


9
Increases in CO2 Emissions, 1999/2020
Eastern Europe 45
North America 42
Ind. Asia 23
W. Europe 21
Dev. Asia 122
Middle East 72
C./S. America 139
Africa 140
Worldwide Carbon Emissions Expected to Increase
61
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Technology Challenges for Natural Gas
11
Challenge 1 Developing Conventional/
Unconventional Gas Resources

Near Term Enhanced Drilling Enhance Seismic
Techniques Reservoir Management Unconventional
Gas Production
Mid Term Ultradeep-Water Production
Unconventional Gas Production from multiple
sources Deep Drilling Advanced Coalbed Methane
Long Term Methane Hydrates New Architecture
for Ultradeep-water Production and Transport

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Countries With Coalbed Methane Development
Programs
United Kingdom
Russia
Canada
United States
China
Ukraine
Brazil
Australia
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Location of Worlds Known and Expected Methane
Hydrate Deposits
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Methane Hydrates Long Term Potential,
Significant Hurdles

• Enormous potential resource. USGS estimates
  that there are 320,000 tcf in the US.
• Methane is 10 times more effective than CO2 in
  causing global warming. Impacts of methane
  hydrate production unknown.
• Gas hydrates may cause landslides on the
  continental slope
• Production methods unclear
• Role in ecosystem not clearly understood

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Challenge 2 Accessing Stranded Natural Gas
Resources

Near Term LNG Infrastructure and
Efficiency LNG Quality Gas to Liquids
Mid Term Super Pipelines Floating LNG
Production/ Regasification/ Storage GTL
Compressed Natural Gas Transport
Long Term Methane Hydrates Gas by Wire

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Worlds Stranded Gas Reserves By Region
and Amount
8
11
6
6
10
6
5
Import Markets
Source World LNG/GTL Review
(US Recent Price)
10-60 tcf
60-160 tcf
160-300 tcf
1500 tcf
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Worlds LNG Facilities and Markets Growing
Regional and Global Markets
Source World LNG/GTL Review
Proposed Facilities
Existing Facilities
Markets
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LNG Costs and Infrastructure

• Gas Production .30 - 1.30
• Liquefaction ..1.00 - 2.50
• Shipping. .60 - 1.10
• Regasification... .40 - 1.50
• TOTAL 2.30 - 6.40

Source GTI LNG Source Book, 2001

• 17 LNG Liquefaction (Export ) Terminals
• 40 Regasification (Import) Terminals
• 130 LNG Tankers (120 M Metric Ton Capacity)

Source University of Houston Institute for
Energy Law Enterprise
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R D Needs for Liquefied Natural Gas Lowering
Cost, Increasing Flexibility

• Floating LNG liquefaction/ regasification/
  storage facilities
• Subsea cryogenic pipelines for offloading
  product to onshore storage facilities
• Use of salt caverns for LNG storage
• Micro-LNG facilities

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Gas To Liquids Technology Accessing Stranded
Gas, Serving Middle Distillate Market
Gas to Liquids technology enables us to bring
stranded gas to markets by converting gas into
high quality liquid fuels that can be
transported to market in the existing
petroleum infrastructure
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Gas To Liquids Technology Reducing Capital
Costs

• Capital costs of GTL have been reduced by 60 in
  last decade. Still, syngas step accounts for 60
  of the capital costs.
• Research to address this cost
• Direct conversion from methane to desirable
  liquid hydrocarbon via catalytic oxidation
• Catalysis improvements for indirect conversion
• Plasma technology for conversion of natural gas
  into syngas before catalytic reaction
• Ceramic membranes
• Co-location with LNG plants

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Challenge 3 Extending the Resource Base By
Developing Alternatives to Natural Gas

Near Term Wind Energy Geothermal
Energy
Mid Term Coal Gasification Coal
Liquefaction Enhanced Oil Recovery Biomass
Gasification Solar Photovoltaics
Long Term Hydrogen and Hydrogen Infrastructure
Affordable Nuclear Power Plants With Manageable
Waste
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Enhanced Oil Recovery Could Change the
Geopolitics of Oil
Canada 300 billion barrels heavy oil
Venezuela 272 billion barrels heavy oil
Saudi Arabia reserve estimates 250 billion
barrels
Steve Holditch, SPE Conference, 2002
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EOR Technology Challenges to Produce
Venezuelan/Canadian Heavy Oil Reserves

• Evaluation of formations
• Special engineering
• New types of completion methods
• Significant hydraulic fracturing
• Horizontal and multi-branched well bores
• Advanced drilling technologies
• Carbon sequestration
• Desulfurization technologies

Steve Holditch, SPE Conference, 2002
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Anthracite/Bituminous
Subbituminous/Lignite
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Coal/Biomass Gasification Rivals Natural Gas in
Environmental Quality

• Produce hydrogen, ammonia,or synthetic natural
  gas from coal or biomass
• High-efficiency production of electricity with no
  release of carbon dioxide to the atmosphere
• High-sulfur coal easily handled with GTIs
  technology

Green Power From Coal
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R D Challenges for Commercial Coal or
Coal/Biomass Gasification

• Lowering of Cost -- 1200 per megawatt hr.
  compared to 900 for conventional coal fired
  plant
• Membranes to separate oxygen from air for
  gasification process and hydrogen and CO2 from
  coal gas
• Feeding and uniformity of feedstock
• Improved gasifier designs
• Advanced cleaning technologies
• Recycling of solid wastes
• Carbon sequestration

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Challenge 4 More Efficient Use of Natural Gas/
Environmental Mitigation

• Near Term
• Power Generation
• Gas Turbines
• Distributed Generation
• End Use Efficiency

Mid Term Advanced Gas Turbines Large Scale
Distributed Generation Fuel Cells Gas to
Liquids Gasification
Long Term Carbon Sequestration Super
Batteries
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Worlds 3 Major Auto Manufactures Moving To Low
Sulfur Diesel Engines/Regulations
US 15 ppm 2006
EU 50 ppm 2005
Germany 10 ppm 2003
Japan 50 ppm 2004
Global Diesel Market 36 million barrels per day
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Environmental Regulations Could Drive Gas to
Liquids Market

9 lower
30 lower
43 lower
45 lower
Nitrogen Oxides
Particulates
Carbon Monoxide
Hydrocarbons
Gas Derived Diesel
Petroleum Derived Diesel
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Regional Supply/Demand Patterns Suggest Various
Technology Pathways for Natural Gas
LNG Infrastructure CNG Transport Unconventional/Ul
tra-deep Gas to Liquids Fuel Cells Hydrogen Methan
e Hydrates Enhanced Oil Recovery Renewables
Infrastructure Improvements Super
Pipelines/Pipelines Energy Efficiency
LNG Coalbed Methane Methane Hydrates
Ultra-deepwater Coalbed Methane LNG
Efficiencies Methane Hydrates Fuel
Cells Hydrogen Renewables
Coal/Biomass Gasification Pipelines/Superpipelines
LNG Efficiencies Coalbed Methane Energy
Efficiency Methane Hydrates
Ultra-deepwater Distributed Generation Gas-to-Liq
uids LNG Efficiencies Energy Efficiency
Enhanced Oil Recovery Ultra-deepwater
Development LNG CNG Transport Methane
Hydrates Renewables
Ultra-deepwater Distributed Generation Gas-to-Liq
uids LNG Efficiencies Energy Efficiency Coal
Gasification
Gas-to-Liquids Coalbed Methane Coal
Gasification LNG Efficiencies
All regions should invest in carbon sequestration
34
Government RD Expenditures in Select Countries
for Nanotechnology
US.700 M per year
DOE197 M (Fy04 req)

EU.600 M per year
Japan1 B (2002)
Taiwan..600 M per year
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Challenge 1 Developing Conventional/
Unconventional Gas Resources

Near Term Enhanced Drilling Enhance Seismic
Techniques Reservoir Management Unconventional
Gas Production Coalbed Methane
Mid Term Ultradeep- Water Production
Unconventional Gas Production from
Shales/Tight Sands/Deep Drilling Advanced
Coalbed Methane
Long Term Methane Hydrates New Architecture
for Ultradeep-water Production and Transport

Possible Nanotechnology Applications Advanced
fluids mixed with nanosized particles to improve
drill speed Nanosensors for reservoir
characterization Removal of gas impurities via
nano separation Nanocrystalline
substances for drilling materials
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Challenge 2 Accessing Stranded Natural Gas
Resources

Near Term LNG Infrastructure and
Efficiency LNG Quality Gas to Liquids
Mid Term Super Pipelines LNG GTL
Compressed Natural Gas Transport
Long Term Methane Hydrates Gas by Wire

Possible Nanotechnology Applications Nanocatalysi
s for gas to liquids production Nanoscale
membranes for gas to liquids production
Nanostructured materials for compressed
natural gas transport
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Challenge 3 Extending the Resource Base By
Developing Alternatives to Natural Gas

Possible Nanotechnology Applications Nanotubes
for fuel cell cars Nanocatalysis for coal
liquefaction Nanocomposites for hydrogen
storage Nanosensors for reservoir
characterization Filters for more efficient
ethanol processing
Near Term Wind Energy Geothermal
Energy
Mid Term Coal Gasification Coal
Liquefaction Enhanced Oil Recovery Biomass
Gasification Solar Photovoltaics
Long Term Hydrogen and Hydrogen Infrastructure
Affordable Nuclear Power Plants With Manageable
Waste
38
Challenge 4 More Efficient Use of Natural Gas/
Environmental Mitigation

• Near Term
• Power Generation
• Gas Turbines
• Distributed Generation
• End Use Efficiency

Mid Term Advanced Gas Turbines Large Scale
Distributed Generation Fuel Cells Gas to
Liquids Gasification
Long Term Carbon Sequestration Super
Batteries
Possible Nano-technology Applications Nano-crysta
ls or photo catalysts to speed up the breakdown
of toxic wastes Nano-scale coatings for more
efficient catalytic conversion Nano-structure
catalysts to remove pollutants/ impurities from
natural gas Nanocrystalline materials for water
treatment Polymeric
nano-particles to remove
pollution from catalytic conversion
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Nanotechnology Avoid the Valley of Death

• Maximize interdisciplinary collaboration
• Involve industry as stakeholders
• Utilize university research capability
• Leverage federal/national labs
• Emphasize pre-competitive results
• Include studies on technology choices/ down
  selection technology migration

Societal Implications of Nanoscience and
Nanotechnology, Sep/ 29,2000