Liquified Natural Gas LNG-Markets, Standards and Perspectives

Vaclav Chrz Martin Seifert 1 Referent: Martin Seifert, SVGW

LNG Market Perspectives

• • • •

Technology Trends Market Segments Standards/Legal Framework

2 Referent: Martin Seifert, SVGW

The Methane Chain / The Grid FOSSIL GAS

CNG

LNG

...... And H2 and ...

BIO methane 3 Referent: Martin Seifert, SVGW

LNG- the Fuel of the Future

The new Motto

The Reserves of Oil and Gas - / Geopolitics

6 Referent: Martin Seifert, SVGW

LNG - Projects in Europe

Existing Terminals Underconstruction Planned or announced

7 Referent: Martin Seifert, SVGW

World Trade in LNG

Holland

LNG Transportation worldwide

Transportation Rules of Thumb • Gas Transport less than 3‘000 km: Pipeline transport more economic • Gas Transport beyond 3‘000 km: LNG is the form of natural gas to be transported

The Main Drivers for LNG

• • • • •

Broad Availability of LNG Coastal Receiving Terminals Peak shaving plants LNG in heavy duty vehicles LNG in Marine Applications

And.....

Example: The Gate Terminal Rotterdam

13 Referent: Martin Seifert, SVGW

EU - Framework

Recommendation to member states Security of supply Diversification of NG Scourcing • LNG - Infrastructure Expansion • Watertransport Capacities Local Air Pollution Strict emission standards for ships in Europe 2014 Strict emission standards for ships worldwide 2020

14

Referent: Martin Seifert, SVGW

The political agenda

• Communication EU: Energy infrastructure priorities for 2020 and beyond Calls for:

"flexible supply, including liquefied (LNG) and compressed natural gas (CNG)”.

The political agenda

• (Draft) Directive on Deployment of Alternative Fuels Infrastructure (COM 2013 18/2):

demands implementation of LNG infrastructure

The political agenda

Article 6: Natural gas supply for transport 1. MS shall ensure that publicly accessible LNG refuelling points for maritime and inland waterway transport are provided in all maritime ports of the TEN – T Core Network by 31 Dec 2020 at the latest. 2. MS shall ensure that publicly accessible LNG refuelling points for inland waterway transport are provided in all inland ports of the TEN –T Core Network by 31 Dec 2025 at the latest. 3. MS shall cooperate to ensure that heavy duty motor vehicles running on LNG can travel along roads of TEN T Core Network. … refuelling point for LNG … within distances not exceeding 400 km by 31 Dec 2020 at the latest.

European LNG Infrastructure Planning • • • •

Use the existng terminals Add a truck loading port Provisions for ship refuelling with LNG A LNG refuelling station in every 200 – 500 km radius distance • Corridor approach: Directional axis

The Principal Market

Small Scale LNG Small Scale LNG Small Scale LNG Small Scale LNG

19 Referent: Martin Seifert, SVGW

What is Small Scale LNG • The main Picture: • Satellite ? Or Refuelling Station?

Road Vehicles Marine Vessels Locomotives on rails (Aircraft)

Central Storage

CNG/Gas

Gas

General markets for small scale LNG

21 Referent: Martin Seifert, SVGW

LNG in Transport

• LNG opens the way for the medium and long distance road transport • Most suited for continously operated heavy duty vehicles • Suited for suburban and long distance public transport

Fuel Alternatives and LNG

Vehicle type

Present fuel

LPG

Liquid bio fuels

Full electric

Hybrids (energy recuperation)

Bio-natural gas (CNG & LNG)

Cars

Petrol & diesel

Yes (conv.)

Yes (%)

Yes (city cars)

Yes

(CNG)

Vans

Diesel

Yes (conv.)

Yes (%)

No

Yes

(CNG)

Delivery trucks

Diesel

No

Yes (%)

No

Yes

(CNG)

Urban buses

Diesel

No

Yes (%)

Yes (wired)

Yes

(CNG)

Coaches

Diesel

No

Yes (%)

No

No

(LNG)

Heavy on road trucks

Diesel

No

Yes (%)

No

No

(LNG)

Heavy off road trucks

Diesel

No

Yes (%)

No

No

(LNG)

Railway locomotives

Diesel & electric

?

Yes (%)

Yes (wired)

No

(LNG)

Ships !

Diesel

?

Yes (%)

No

No

(LNG)

!

The LNG-border line

Chicken and Egg • The most misunderstood concept

24 Referent: Martin Seifert, SVGW

Small Scale LNG



Drivers and Barriers

• Diversification of vehicle fuel Chain • Reduction of local emissions by running hecvy duty applications • Locomotives • Goods transports • Canal ships • Diversification of NG sources • Backup, peak-straving (on per day basis) • LNG advantages in density substitution of Diesel • Ship fuelling • Virtual pipelines to remote regions • Easy LNG-transport on road rail cars, barges for neau shore or river transport 25 Referent: Martin Seifert, SVGW

Small Scale LNG



Drivers and Barriers • Lack of framework regulations for LNG on Land and rivers in the EU • Subsidies/tax exemption-reductions for LNG- Infrastructure build up • No harmonie zed standards for LNG/LCNG refuelling stations • No approved standards for on board equipment on vehicles 26 Referent: Martin Seifert, SVGW

Energy Content of Gaseous Fuels Fuel

Energy (1)

Energy (2)

Density

CNG (dutch)

38 MJ/kg

31,65 MJ/m3

0,833 kg/m3

LNG

49 MJ/kg

22 MJ/liter

0,450 kg/liter @ 160 C

Diesel

42 MJ/kg

36 MJ/liter

0,840 kg/liter @ 15 C

27 Referent: Martin Seifert, SVGW

Energy Content of Gaseous Fuels Trucking Business CNG – Compressed

LNG – Liquefied Natural

Natural Gas 200 bar Density: 144 kg/m3 four high-pressure cylinders onboard a truck = 400 km

Gas max 16 bar Density: 400 kg/m3 (larger action radius) Two double wall vacuum insulated vessel onboard a truck = 1400 km

28 Referent: Martin Seifert, SVGW

The metrics of LNG Production Small Scale LNG The liquefaction of natural gas or biogas requires from 0,65 to 0.9 KWh per kg of LNG produced Liquefaction of gas needs 0,4 kWh/Nm3 electric or mechanic, for which approx. 1 kWh/m3 of gas (primary energy) is needed.

The metrics of a LNG refuelling station Small Scale LNG • Capacity: 20 – 100 m3 LNG storage • Average time for filling storage 1-2 hours • Tank pressure: 6 – 10 bar/Temperature: 150oC • LNG-Dispensing: 150 – 200 l/min • Investment costs: 1.2 – 2 Mio Euro

The metrics of LNG in Transport • Dimensions of satellite station: ca. 78 m3 LNG which equals 28 tons of LNG • Dispensing per day: ca. 4 tons which equals 416 Nm3/h • One m3 of LNG equals 580 litres of diesel • One m3 of LNG equals 460 kg • LNG is composed of 90 to 95 % of methane, the rest is ethane, propane and nitrogen

The metrics of LNG in Transport Diesel in comparison to CNG and LNG CNG 5 liter 1 litre Diesel oil

-162OC

LNG - Densities

LNG 1,8 liter

Markets for LNG

• Main driver: Switzerland, Austria, parts of Germany: Satellite industrial plants • Main driver: Holland, Sweden, UK: Heavy Duty trucks (fuel applications) • Next Markets: Peak shaving, emergency supply etc. 33 Referent: Martin Seifert, SVGW

Refuelling – Key to Small Scale LNG

• • • • •

Refuelling of Storage Tanks Refuelling of Vehicles Refuelling of Ships Refuelling of Bunkers Refuelling of Trailer Storages

Transfer of a cryogenic liquid from one storage to another

LCNG and LNG stations LNG trailer

LNG dispenser

LNG tank saturation vaporizer

LNG pump in cryo-vessel

truck driven by LNG

high pressure buffer L

highpressure LNG pump

product vaporizer

CNG dispense r

Odorizer

lorry driven by CNG

LNG-Infrastructure Development The Corridor Idea • Calls for interdisciplinary, international collaboration • CNG station distance separation 150 km • LNG station separation 400 km (pipeline independent or with pipeline connection) • Quick filling statios 5-8 min/per truck

36 Referent: Martin Seifert, SVGW

LNG heavy duty vehicle offer Evrope from 2010: big truck manufacturers entering the market

Volvo FM NG-diesel 460 HP LNG

Solbus (Poland), LNG bus

Mercedes Econics, 279 HP, LNG

Iveco Stralis LNG 270 HP (option 330 HP) LNG

Gazprom entering the game as vendor of LNG

Dual Fuel Technology and LNG • The dream team for heavy duty applications on ships and trucks and locomotives

38 Referent: Martin Seifert, SVGW

Infrastructure Initiative LNG-fuelling for Trucks

Blue Corridor

39 Referent: Martin Seifert, SVGW

Infrastructure Initiative LNG-fuelling for Trucks

Infrastructure Initiative LNG-fuelling for Trucks

Infrastructure Initiative LNG-fuelling for Trucks

Small Scale LNG/LCNG Station Design • 20 m3 geometric Capacity

43 Referent: Martin Seifert, SVGW

Where to put the LNG stations: Satellite and/or refuelling Machinery building or wood gasification

Cogeneration Plant

Boiler Building

Air pressure Generator Compressor

Air pressure Storage

LNG-Satellite Plant Refuelling station

Heat storage Battery Storage

Electrolysis Wood With H2- storage storage 44 Referent: Martin Seifert, SVGW

Mobile LNG station in a 20ft (or 40ft) ISO container

...with LNG fueling pump, flowmeter and printer (courtesy Chart Ferox a.s.)

Movable LNG station.

30 000 liter tank, (equivalent of 16 000 Nm3 gas), suitable for 100 truck or bus fuelings/day (courtesy Chart Ferox, a.s.)

Ships and LNG / Bunkering The Fuel Tanks

47 Referent: Martin Seifert, SVGW

Ships and LNG / Bunkering Before

After

...........LNG-Conversion

Ship Bunkering • Small ship bunkering is probably one of the first most important movers in the LNG business Current infrastructure Currently the (inland) ships are bunkered by a truck.

Expected infrastructure (under development) Planned: to develop bunker locations in harbors and ports, so: – ships with bigger volumes can be bunkered and; – the skipper can bunker with a tight planning scheme.

49 Referent: Martin Seifert, SVGW

The Key to Infrastructure Build up • Rhine barges: Can run on LNG • Rhine barges can transport LNG • On shore LNG refuelling stations allow for truck refuelling as well • Transport costs low • Capacity not limited

50 Referent: Martin Seifert, SVGW

The Key to Infrastructure Build up Rhine Barges

51 Referent: Martin Seifert, SVGW

Bunkering Supply chain challenge LNG

LNG receiving terminal

Logistics

bunkering station

LNG to ship

current LNG market is not adapted for small scale contracts • fixed tariffs based upon long term contracts • fixed volumes • no priority, because volumes are small in comparison with current market

52 Referent: Martin Seifert, SVGW

Bunkering Supply chain challenge LNG

LNG receiving terminal

Logistics

bunkering station

LNG to ship

handling fee is not in competitive for small scale market • to be competitive with truck loading at least 6000 m3 LNG in a bunker barge should be loaded No Priority in handling bunker barges LNG quality variation

53 Referent: Martin Seifert, SVGW

Bunkering Supply chain challenge LNG

LNG receiving terminal

Logistics

bunkering station

LNG to ship

First demo projects can be supplied by truck Not a favorable option to supply LNG by truck – not enough slots available at the terminals – limited routes available for transport of dangerous goods – not suitable for short sea shipping Chicken and egg situation for bunker barges 54 Referent: Martin Seifert, SVGW

Cost indication for LNG supply

Cost indication for LNG supply LNG supply by truck – LNG brutto – handling at terminal (€ 500,-/ton) – transport – LNG netto at location indication € 550,-/ton LNG supply by truck to bunkerstation – LNG brutto – handling at terminal (€ 500,-/ton) – transport – investment and operation of bunkerstation (€ 100-200/ton) – LNG netto indication € 750,-/ton

Cost indication for LNG supply LNG supply by bunker barge to bunker station – LNG brutto – handling at terminal (€ 100.000,-/slot) – logistics – investment and operation of bunker barge (€ ???/ton) – LNG netto indication € ???,-/ton LNG supply by bunker barge directly to ship – LNG brutto – handling at terminal (€ 100.000,-/slot) – logistics – investment and operation of bunker barge (€ ???/ton) – LNG netto indication € ???,-/ton

Standards and Codes

58 Referent: Martin Seifert, SVGW

Main Influences on Small Scale LNG Station Design and LNG Vehicles

European Union • • • • •

Environmental safety Fire safety Transport safety Occupational safety on the job Standards

CEN-EN-European Standards LNG Refuelling station = Satellite station with a LNG receptacle

• The EN13645:2001 is operative for LNG on shore design installations with storage capacity within 5-200 tons (includes “LNG Satellite Stations” even though not specifically referring to L-CNG filling stations); • EN1160:1996 and EN1473:1997 cover LNG facilities with storages over 200tons.

ISO TC67 WG10 International Standardization for LNG equipment and installations

Presentation WG 10 Septembre 2012

WG10’s project teams (PTs) PT1 : Infrastructure for LNG as fuel for ships (under development) PT2 : Ship to shore interface – port operations (standard issued) PT3 : Guidance on performing risk assessments in the design of onshore LNG installations. (Waiting ballot) PT4 : Characteristics of LNG and materials suitable for construction of equipment for cryogenic uses. (Waiting ballot) PT5 : Guidance for conception, design and testing of LNG storage tanks. (under development) PT6 : Installation and equipment for LNG - Design and testing of marine transfer systems – articulated arms (Waiting ballot) PT7 : Unconventional LNG transfer systems (under development)

Vehicles fitted with an LNG Fuel System Working Party on General Safety Provisions (GRSG) Regulation 110

Main inconsistencies National Regulations – ISO-Standard

• • • •

Safety distances Risk analysis Main risk points Fire Protection

ISO TC67 WG10 International Standardization for LNG equipment and installations

Presentation WG 10 Septembre 2012

WG10’s project teams (PTs) PT1 : Infrastructure for LNG as fuel for ships (under development) PT2 : Ship to shore interface – port operations (standard issued) PT3 : Guidance on performing risk assessments in the design of onshore LNG installations. (Waiting ballot) PT4 : Characteristics of LNG and materials suitable for construction of equipment for cryogenic uses. (Waiting ballot) PT5 : Guidance for conception, design and testing of LNG storage tanks. (under development) PT6 : Installation and equipment for LNG - Design and testing of marine transfer systems – articulated arms (Waiting ballot) PT7 : Unconventional LNG transfer systems (under development)

Small Scale Refuelling Station Standards OIML

ISO PC 252

Liaison ISO TC22/ SC 25

Chair: Switzerland Secretariat: Holland

CNG-Refuelling Station Standard

LNG&LCNG Refuelling Station Standard

67 Referent: Martin Seifert, SVGW

The ISO/DIS Standard 16924

On Ballot now

68 Referent: Martin Seifert, SVGW

Scope ISO • Design, construction, operation, maintenance and inspection of stations for fuelling LNG to vehicles • LCNG stations analogously covered • Applies to (vehicle) fuelling stations receiving other Methane Rich Gases

What is a vehicle Gas Quality designation? Why not small scale LNG station dispensing liquid And/Or gaseous fuel?

Fuel Specification

• There is no fuel specification in neither of the CNG- nor the LNG-refuelling station standard • CEN PC 408 (under the mandate of EU) will formulate the necessary fuel quality standards for LNG too

Fuel Specification MN : 90 - 100 (suitable to biomethane and very Lean LNG = best for Aviation or for blending) MN : 80 – 90 (suitable to typical Lean LNG and “controlled” Hpipeline-gas = best for HD vehicles) MN : 60 – 90 (suitable to “any-uncontrolled pipeline-gas and for Rich LNG)

LNG

What are the main items in the standard • • • • • • • • • • • • •

General principles of design and installation LNG supply interface LNG storage tank LNG pumps (including ancillaries) Vaporizers and heaters LNG Dispenser Emergency shutdown system (ESD) and procedures Electrical equipment and wiring Inspection and Testing Movable LNG fueling station Mobile LNG fueling station Operation Periodic inspection/Maintenance

What is a LNG refuelling station

What is a LCNG refuelling station LNG Liquid Cryogenic

CNG High pressure

Site and layout

• Components with location restrictions? • Minimal safety distances • Hazardous area classification

Distances from aboveground LNG storage tanks and exposures

LNG supply interface • Main risk: Overpressure and overfill • Prevention of backflow • Depressurization of loading arms and hoses

LNG unloading and dispensing areas Additional safety measures LNG leak detection • Methane detection necessary • Suitable mounting • Flame detection covering the zones with risk of ignition Detection activates ESD = Emergency shut down

Operation

• Refuelling only by trained persons • Protection gear: Face shield, gloves • Training in emergency procedures

Fire Protection/Fire Fighting areas

• General principles: Accessability/On site fire fighting equipment Solid Fire wall Hight 2 m 1 hour fire resistance

Fire Walls = Reduced Safety distances

Electrical Area Classification According to NFPA 52

81 Referent: Martin Seifert, SVGW

Site specific requirements

• Hazard and operability study (HAZOP) or equivalent necessary

One clause statement

no specifications how to do it!

IEC 60079: Explosive atmospheres and electrical apparatus/installations

Safety Distances

• Protection of the LNG-station from external hazards caused by outside risks • Prevention of risks of LNG station to other installations and buildings • Prevention of general fire hazards

Problems of Safety Distances

• Leak based approach and/or catastrophic failure • Credible incident scenarios • Incident scenarios are country specific

Safety Distances • General Considerations: Radius of Impact Commercial Center

Commuter and Goods Traffic

Safety Distances Risk Contours • General Considerations: Radius of Impact • Assessement based on risk approach: Probability x consequence plus national risk standards • Failure Mode and Effects Analysis (FMEA): Scenario based

Scenario approach

• Small leak, LNG spill. Causing jet fire • LNG spilling out of a refuelling hose • Impact of extreme proportions

Influence on internal and external distances

Internal Safety Distances • Scenarios on LNG spills • Scenarios on small leaks

Safety distances • With protective walls or special site configurations external safety distances can be reduced

The Succes Factors for LNG – LNG engines are available – ships are sailing today with LNG as fuel – infrastructure for demo projects is available – bunkering stations (for short sea shipping) are under development – LNG is cost competitive in relation to the coming emission regulations – regulations for LNG bunkering under construction and on short notice available 90 Referent: Martin Seifert, SVGW

The Succes Factors for LNG

91 Referent: Martin Seifert, SVGW

That‘s the End

Any Questions left?

[email protected]

92 Referent: Martin Seifert, SVGW