igu2006paperpaperadd11122

1、23rd World Gas Conference, Amsterdam 2006USING CNG (COMPRESSED NATURAL GAS) AND LNG(LIQUEFIED NATURAL GAS) TO DEVELOP NEW MARKETS IN BRAZILHijjar, J. R. A., D.Sc.BrazilDefinitie van opmaakprofiel: Standaard: Inspringing: Links: 1,59 cmDefinitie van opmaakprofiel: Kop 1: HoofdlettersDefinitie van opm

2、aakprofiel: Kop 2: Lettertype: Niet Cursief, HoofdlettersDefinitie van opmaakprofiel: Kop 3: Inspringing: Links: 1,59 cmMet opmaak: Lettertype: 11 ptMet opmaak: Kop 3, CentrerenMet opmaak: Lettertype: 11 pt, SuperscriptMet opmaak: Lettertype: 11 ptMet opmaak: Lettertype: Niet CursiefMet opmaak: Stan

3、daardMet opmaak: Lettertype: 14 pt, VetVerwijderd: MONETIZING PETROBRAS URUCU FIELD NATURAL GAS RESERVES - CNG AS A MARKET AND TECHNOLOGICAL DEVELOPMENT TOOL IN THE AMAZONVerwijderd: de XerezVerwijderd: MMet opmaak: Lettertype: Niet Vet, Spaans (Spanje-modern)Met opmaak: Lettertype: Niet VetMet opma

4、ak: Lettertype: Niet Vet, Spaans (Spanje-modern)Met opmaak: Kop 3, CentrerenMet opmaak: StandaardVerwijderd: Carvalho, R.N. Cordeiro de Melo, T.C. Paterman Brasil, N.Met opmaak: Spaans (Spanje-modern)Verwijderd: Met opmaak: Standaard, Inspringing: Links: 6,67 cm, Eerste regel: 0,95 cmMet opmaak: Kop

5、 2 Verwijderd: MONETIZIN.G. 1 Met opmaak. 2 Met opmaak. 3 Met opmaak. 4 Verwijderd: Monetizing th.e. 5 Met opmaak. 6 Verwijderd: UrucABSTRACTBearing in mind the sparse natural gas pipeline network in Brazil and many incipient markets away from direct influence of such network, alternative ways of tr

6、ansportation and distribution shall be considered in order to develop such markets. Verwijderd: Urucu natura.l.ga7sVerwijderd: do Verwijderd: to gasoline o.r. 8 Verwijderd: mostly for th.o.s. e9Many cases have already been analyzed and, due to size and distance of specific markets, the use of CNG or

7、 LNG to supply natural gas has been proved economically feasible when compared to the construction of a pipeline. In fact, there are now in Brazil some on-going CNG business cases and one LNG project under implementation. It shall be noted that in Brazil there is no importation of LNG, which implies

8、 relevant liquefaction costs.Verwijderd: specialyVerwijderd: .Verwijderd: like Verwijderd:It is special.ly. tr1u0e Verwijderd:This paper intends to identify the aspects to be considered when analyzing CNG and LNG projects and to present how CNG and LNG can be strategically used to develop new market

9、s. There are two possible ways: a) supply CNG or LNG on economic and long-term basis or; b) supply CNG or LNG temporarily to a relatively small and far target market until that market grows, making it feasible to be served by a pipeline. Then, using the mobility of CNG or LNG infrastructure (the “mo

10、bile pipeline” concept), redirect supply to a further market.taxi drivers.,. 11 Verwijderd:Naturally,Verwijderd: It is commo.n. th1a2tVerwijderd: alVerwijderd: -friendly an.d. 13Verwijderd: convertionSome examples are analyzed, with due considerations on physical, economic and strategicissues.Verwij

11、derd: conversion.o.f 14Verwijderd: convertionFinally, conclusions are produced showing the feasibility of using CNG and LNG to develop new markets in Brazil.Verwijderd: conversion.k.its1. 5 Verwijderd:Verwijderd: parameters.f.or1a6Verwijderd: convertionVerwijderd: conversion.k.iti1t 7isVerwijderd: a

12、nd under . 18Verwijderd: according t.o.FT1P9-Verwijderd: .Verwijderd: and the em.i.ss2io0nVerwijderd: original.ThisVerwijderd: original. Th.is. 21Verwijderd: usuallyVerwijderd: acceptedVerwijderd: by Brazilian. 22Verwijderd: as a satisfa.c.tor2y3 Verwijderd: environmental Verwijderd: legislation. 24

13、 Verwijderd: those Verwijderd: some pioneer Verwijderd: s Verwijderd: tests for a .c.o. u2p5le Verwijderd: conversion kit Verwijderd: identified Verwijderd: proper para.m. e2te6r Verwijderd: equipments Verwijderd: NGV conve.r.s. io2n7 Verwijderd: level constraints Verwijderd: legislation Verwijderd:

14、 s Verwijderd: . Based on.t.h. es2e8 Verwijderd: and Verwijderd: gas and b Verwijderd: B . 29 . 30 . 31 . 32TABLE OFCONTENTS1. Introduction2. CNG and Small LNG Project Analysis 2.1 The The CNG Project 2.2 The Small LNG Project 2.3 Basic Differences to be Considered3. The Use of CNG AND LNG to Develo

15、p New Markets in Brazil 3.1 Supply CNG or LNG on Economic and Long-term Basis 3.2 Supply CNG or LNG Temporarily to a Small and Far Market4. The On-going Projects in Brazil 4.1 CNG Projects 4.2 The LNG Project - GEMINI 4.3 New Special CNG Projects5. ConclusionsMet opmaak: Kop 2Verwijderd: ABSTRACT1.

16、INTRODUCTION2. CNG AND SMALLLNG PROJECT ANALYSIS The CNG ProjectThe Small LNG Project Basic Differences To Be Considered3. THE USE OF CNGAND LNG TO DEVELOP NEW MARKETS IN BRAZIL Supply CNG Or LNG On Economic And Long-Term BasisSupply CNG Or LNG Temporarily To A Small And Far Market4. THE ON-GOING PR

17、OJECTS INBRAZIL CNG ProjectsThe LNG Project - GEMINI New Special CNG Projects5. CONCLUSIONS REFERENCESVerwijderd: Met opmaak: Lettertype: Niet VetMet opmaak: Lettertype: Niet VetMet opmaak: Lettertype: Niet VetMet opmaak: Lettertype: Niet VetMet opmaak: Lettertype: Niet Vet1. INTRODUCTIONThe beginni

18、ng of Natural Gas Industry in Brazil was marked by direct selling from Petrobras (the brazilian state-owned oil company) to some big customers located close to oil production fields. Since the available natural gas in the country was associated to oil and the most important oil fields were located o

19、ffshore, the gas pipeline network needed to supply those target market was built close to the coast and was, indeed, very small. In the middle nineties, two facts showed up to change a great deal the situation. The recently voted brazilian constitution defined a new regulation for the natural gas in

20、dustry. The distribution of natural gas by pipeline was defined as a monopoly of the Federative States (public service). Many state companies were created to distribute natural gas as well as some private companies, that operated by concession (Local Distribution Companies LDCs). It was also decided

21、 to implement a joint-ventured big pipeline project to import natural gas from Bolivia to the south of Brazil, primarily to be used in thermoelectric plants. At that point, we could say that a real natural gas market had just started and many efforts were made to achieve new markets.Despite of that,

22、 the transportation and distribution pipelines are still very sparse (see figure 1 below), what leads CNG and LNG to play an important hole to develop new markets.PECM SO LUSURUCU MANAUSGASFOR IINORDESTO IICU PORTO VELHOCATU PILARGASENECACIMBAS - VITRIALORENA POOS DE CALDASURUGUAIANA PORTO ALEGRECAM

23、PINAS RIOEXISTING PIPELINESDESIGNED PIPELINESPIPELINES BEING STUDIED Figure 1 Transportation Pipeline Network in BrazilVerwijderd: PETROBRAS ACTIVITIES IN THE AMAZON THE URUCU PRODUCTION AREAMet opmaak: Kop 2, Meerdere niveaus + Niveau: 1+ Nummeringopmaakprofiel: 1,2, 3, + Beginnen bij: 1 + Uitlijni

24、ng: Links + Uitgelijnd op: 0 cm + Tab na: 0,63 cm + Inspringen op: 0,63 cm2. CNG AND SMALL LNG PROJECT ANALYSIS2.1 The CNG ProjectMet opmaak: StandaardA typical CNG small project comprises one compressing station (where natural gas is available and compressed to 220-250 kgf/cm2 and put into cylinder

25、s especially designed for that), the transportation of such cylinders on trucks, trains or boats and a receiving station (where the gas is Met opmaak: Standaard, Inspringing: Eerste regel: 1,59 cmMet opmaak: SuperscriptMet opmaak: Engels (V.S.)Verwijderd: Met opmaak: Inspringing: Eerste regel: 1,59

26、cmdelivered to the customers). The empty cylinders are then returned to the compressing station to re- start the process again. A schematic figure is shown below. Figure 2 The CNG Project2.2 The Small LNG ProjectA typical small LNG project comprises one liquefaction station (where natural gasisMet o

27、pmaak: Inspringing: Eerste regel: 1,59 cmavailable, refrigerated to a temperature of -163 C and put into recipients designed for that), thetransportation of such recipients on trucks, trains or boats, one regas station and a receiving station (where the gas is delivered to the customers). The empty

28、recipients are then returned to the liquefaction station to re-start the process again. Some tanks are normally used to storage liquefiedgas throughout the process.Figure 3 The LNG Project Met opmaak: Inspringing: Links: 4,13 cm, Eerste regel: 0,95 cmLiquefying StationTarget Market RegasStationSFIMD

29、istribution pipeline“Mobile Pipeline”torage TankStorage TankMet opmaak: Engels (V.S.)Target MarketCompressingStation(NGV Station Industry, etc.)Distribution Pipeline“Mobile Pipeline”Met opmaak2.3 Basic Differences to be ConsideredWhen natural gas is compressed to 220-250 kgf/cm2, it shrinks to a vol

30、ume of approximately300 times less the original one. If it is liquefied, the volume reduction is of about 600 times (no highpressures are needed). Also, the cylinders designed to support high pressures are very heavy, when compared to the recipients to be used with LNG. Those factors cause transport

31、ation cost for CNG to be bigger than for LNG.On the other hand, the liquefaction station is much more expensive than the compression one and LNG process includes one more step of regasification, whose cost shall be considered too. It shall be noted that in Brazil, at the present time, there is no im

32、portation of LNG.Summarizing, to compare CNG, LNG and pipeline projects, one must consider the feasibility of such complex logistics and also the comparative economics, since CAPEX and OPEX can vary significantly for each case.It is normally accepted that when the demand is small as it is the distan

33、ce between the market and the gas supply station, CNG projects are very feasible. For long distance and big gas demand, the pipeline seems to be the best solution. Finally, for long distance and moderate demand, LNG projects fit quite well. Although, the results of most business cases in Brazil have

34、 agreed with those assumptions, some specific cases showed that, despite common sense, it is a good idea to consider different options when analyzing such opportunities.3. THE USE OF CNG AND LNG TO DEVELOP NEW MARKETS IN BRAZILThere are two possible ways to use CNG and LNG to develop new markets in

35、Brazil: supply CNG or LNG on economic and long-term basis or supply CNG or LNG temporarily to a relatively small and far target market until that market grows, making it feasible to be served by a pipeline. In that case, using the mobility of CNG or LNG infrastructure (the “mobile pipeline” concept)

36、, one can redirect supply to a further market.3.1 Supply CNG or LNG on Economic and Long-term BasisDue to the scarcity and location of brazilian pipeline network, there are many small markets away from direct influence of such network. As Local Distribution Companies (LDCs) tend to reach the more pr

37、ofitable markets and other ones are not considered in their development plan to be served by pipeline in the near future, a great opportunity for CNG and LNG projects has been created. It will always be the risk of a pipeline to be built to reach that market, but one can always work together with LD

38、Cs.3.2 Supply CNG or LNG Temporarily to a Small and Far MarketAs part of their strategy, some LDCs began planning the development of market away from the existing pipelines. The so-called Interiorization plans have been idealized in two different ways. Some LDCs are in the process of building pipeli

39、nes (but just to some point inside the state) and others have decided to use CNG and LNG projects to expand the border of gas supply in consecutivephases. In other words, serve a specific market inside the state by trucks, make the market big and, finally, build a pipeline. After that, a new phase b

40、egins from that point on. In order to keep focusing on their normal job (pipeline distribution), many LDCs tend to have partners to implement that program.Met opmaak: Inspringing: Eerste regel: 1,59 cmVerwijderd: The Urucu Production AreaThe Urucu Production Area is located in the Coari County, the

41、middle of the Amazon jungle, distant some 650 km from Manaus, the capital of the Amazon State. It received its name after the Urucu River, one of the Solimes River affluents. Petrobras started its production activities in Urucu after the discovery of a significant reserve of oil and natural gas in 1

42、986. Many challenges have been conquered to establish production activities in such a remote area since 1988 when the first commercial well started production. In 1998 the multi- product pipeline Urucu-Coari started operations, transferring the Production Area production to the port facilities in Co

43、ari in the Solimes River. By 2001 figures, local operations in the Urucu Production Area involved up to 900 people, working on a facilities complex composed of an airport, two river ports, 70 km of paved roads and 40 km more of non-paved roads, a pipeline network connecting more than 90 geographical

44、ly disperse wells (among production, gas and water injection) to an industrial plant called Polo Arara, where oil and gas are processed. The . 36Met opmaak: Superscript Met opmaak: SuperscriptMet opmaak: SuperscriptVerwijderd: The Urucu- Coari-Manaus gas pipeline The re-injection volumes .a.re37 Met

45、 opmaak: SuperscriptMet opmaak: SuperscriptVerwijderd: URUCU FIELD NG AND PREVIOUS ANALYSIS Met opmaak. 38Met opmaak: Inspringing: Eerste regel: 1,59 cmMet opmaak: Inspringing: Eerste regel: 1,59 cmMet opmaak: Kop 3Met opmaak: Inspringing: Eerste regel: 1,59 cmMet opmaak: Lettertype: Niet Vet4. THE

46、ON-GOING PROJECTS IN BRAZIL4.1 CNG ProjectsThe first CNG project in Brazil was held in 2001 in the State of Rio Grande do Sul (in thesouth of the country) and was designed to provide 5.000 m3/day to an industry located 40 km awayfrom the pipeline. A new pipeline was to be built in three years. After

47、 that, the CNG infrastructure was moved to serve a new small market a little bit further.URUCU Figure 4 CNG Project in Rio Grande do SulBy the same time, many other projects were developed by LDCs in the northeast of the country, to supply CNG to cities in the interior of the states, specifically fo

48、r Natural Gas filling stations. One shall remember Brazil has the second biggest fleet of Natural Gas Vehicles (NGV) in the world. Those projects were developed in the following states: Paraba, Alagoas, Pernambuco, Cear, Esprito Santo e Rio Grande do Norte. The average volume of natural gas supplied

49、 was 5.000 m3/dayMet opmaak. 48 Met opmaak. 49 Met opmaak. 50(each project).Met opmaak. 51Met opmaak. 52Met opmaak. 53URUCU Met opmaak. 54 Met opmaak. 55Met opmaakMet opmaak. 56. 57 Met opmaak. 59Met opmaak Met opmaak Met opmaak Met opmaak Met opmaak Met opmaak Met opmaak Met opmaakMet opmaak. 60. 6

50、1. 62. 63. 64. 65. 66. 67. 68 Figure 5 CNG Projects in the Northeast of BrazilAfter the implementation of those first CNG projects, some others were developed close to the biggest markets of Brazil (Rio de Janeiro and So Paulo). The target segment markets are: industries, gas filling stations and residences. Met opmaak. 58Met opmaak: SuperscriptVerwijderd: Verwijderd: EXPERIMENTALVerwijderd:Met opmaak: Kop 2, Meerdere niveaus + Niveau: 1+ Nummeringopmaakprofiel: 1,2, 3, + Beginnen bij: 1 + Uitlijning: Links + Uitgelijnd op: