1. TRANSPORT OF NATURAL GAS USING HYDRATE TECHNOLOGY
TEP 4250 Multiphase Transport
January 17, 2006
TRANSPORT OF NATURAL GAS USING HYDRATE TECHNOLOGY
Jon Steinar Gudmundsson
Petroleum Engineering and Applied Geophysics
NTNU
Trondheim, Norway

2. NGH = Natural Gas + Water
1 m3 of hydrate
180 Sm3 of gas

3. NGH Technology Milestones
NTNU demonstrates meta-stability of NGH when below freezing point of water
Meta-stable NGH suitable for storage and transport of associated gas and non-associated gas
Aker Kværner estimates cost of NGH ¼ lower than cost of large-scale LNG (seawater temperature 5 C)
Several oil companies support R&D in Norway on NGH technology for stranded gas
Aker Kværner and NTNU establish technology company Natural Gas Hydrate AS
Several Japanese corporations investigate NGH production technology and shipping
Mitsui identifies importance of standardized NGH pellets and need for demonstration project

4. Non-Pipeline Technologies
CNG Compressed Natural Gas
GTL Gas-to-Liquid (incl. MOH)
GTW Gas-to-Wire (DC and AC)
LNG Liqufied Natural Gas
NGH Natural Gas Hydrate

5. CAPACITY-DISTANCE DIAGRAM Gudmundsson and Mork (2001)

6. Production of Hydrates Industrial Process
Freezing
Unit
Separator
Reactor
Water
Slurry
Hydrate
Natural Gas
Frozen
Hydrate
Reactor
Unit
Separator
Unit
Freezing
Unit

7. NTNU’s Hydrate Laboratory, Trondheim, Norway

8. Mitsui’s Hydrate Pilot Plant, Chiba, Japan

9. Natural gas sea transport chain with NGH pellets
NGH formation
Storage Tank
Storage Tank
Re-gasification
Natural Gas
Natural Gas
Water
Pelletizer
Water
NGH Carrier
Load
Unload
Powdery
Pellets
Pellets to fire

10. Million US dollars mid-2002 (Aker Kværner Technology AS)
Capital cost of NGH and LNG chains for 400 MMscfs production and transport over 3243 nautical miles (6000 km). Cooling water temperature 35 C (5 C in 1996 study).
Million US dollars mid-2002 (Aker Kværner Technology AS)
Chain
LNG
NGH
Difference
Production
1144 (55%)
992 (54%)
152 (13%)
Carriers
660 (32%)
628 (34%)
32 (5%)
Regasification
285 (13%)
218 (12%)
67 (24%)
Total
2089 (100%)
1838 (100%)
251 (12%)

12. NGH sea transport chain cost has competitiveness compared with LNG
NGH system becomes more profitable than LNG system in medium/small size and short distance transport project.
Expected Profit
LNG chain market price (LNG CIF Japan (Ave ) plus storage & re-gasification cost in Japan
Notes;
Average Japan CIF from 1993 until 2002 is amounted for $3.8 per mmBTU (BP2003) .

13. STANDARDIZED PELLETS Mitsui Engineering & Shipbuilding

14. Images of NGH carriers
Source; JRTT/Phase-1, Conceptual design on NGH carrier

15. NATURAL GAS HYDRATE AS …Technology Company…
Company established by Aker Kværner Engineering and Technology AS and Professor Jon S. Gudmundsson, NTNU (Norwegian University of Science and Technology).
Company holds Intellectural Property Rights (patents and studies) world-wide, since 1990.
Company’s main purpose is to own, develop and commericialise hydrate technology, including licensing.
Company works in co-operation with industrial clients, partners and organisations.
Aker Kværner Engineering and Technology AS provides design and engineering services, while NTNU provides R&D services.

16. Concluding Remarks
NGH technology feasible for storage and transport of natural gas world-wide (cold regions best)
NGH technology developed in Norway with public and industry funding, R&D also in Japan
NGH technology ready for demonstration scale (continuous production, transport and regasification)
NGH technology has markets world-wide, Aker Kværner and NTNU of Norway co-operate with Mitsui of Japan
Further work planned in co-operation with future users (energy companies world-wide) of NGH technology