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SNG – Synthetic Natural Gas

July 20th, 2010

Synthetic Natural Gas (SNG) is a blend of Liquefied Petroleum Gas (LPG) and Air that is a direct replacement source for Natural Gas. Working on the fundamentals of fuel interchangebility, the LPG-Air mix/blending is an invisible application of LPG not known to many.

The oppurtunities SNG, also known as Substitute Natural Gas, provides include:

  • Using it as an industrial back-up (during the Natural Gas shutdown/curtailments).
  • Using it a base fuel to serve area not under service of Natural Gas.
  • Using it to suppliment Natural Gas during peak demands known as peak shaving.

SNG is made by mixing the vapour LPG with air to a ratio of approximately 45% air and 55% LPG. Why mixing? Becasue LPG is a highly concentrated source of energy, with 2516 BTU’s per cubic foot gross heat content. Which is too rich to be used as a substitute for natural gas without dilution. If the Natural Gas and SNG have an indentical Wobbe Index, they will produce equivalent energies and will combust in the same amount of air. Thus the mixer blends in just the right amount of air and LPG; producing a mix of specific gravity 1.31 (1480BTU/Cu.Ft) and Wobbe Index that will match that of the Natural Gas.

This interchangeable use of SNG and NG makes it a powerful tool to startegically manage Natural Gas shortage.  In the coming posts we will discuss the details of this strategy and technical aspects of SNG.

Energy, Infrastructure, Natural Gas, SNG , , ,

LPG – Unjustified Price Rise By Rs 6/kg

July 4th, 2010

LPG, the domestic gas used by people in remote areas and when mixed with air (SNG) used by industries for Natural Gas back-up is facing an unjustified price hike during the last month. The Express Tribune reports the details as follows:

Despite the decrease in the Liquefied Petroleum Gas (LPG) prices in the international market, the LPG producers on Saturday increased prices by Rs6 per kilogramme and now LPG is available for Rs69 per kg, industry sources said.

The prices of LPG in the international market decreased Rs4 per kg but the local producers increased the price by Rs6 per kg, said LPG Distributors Association Chairman, Irfan Khokhar.

He said that Jamshoro Joint Venture Ltd (JJVL) is the major producer of LPG in Pakistan and it has increased the prices, compelling other producers to increase the prices.

He said it was the second consecutive increase in the last one month, and the industry, due to the unjust increase, has earned Rs150 million.

“The government should take it seriously and provide relief to the people,” he said.

LPG, Natural Gas, SNG , , , ,

Iran and Pakistan Sign Pipeline Deal

April 15th, 2010

After many years of discussions, politics and negotiations Pakistan and Iran signed the gas pipeline deal last month. To see a historical perspective, see the below image from 2005. India is no longer part of the deal. Also note the US reaction, via Dawn.

Construction on the pipeline should begin this year and be operational by 2014, said Abdul Basit, a foreign ministry spokesman.

Iran and Pakistan signed an initial pact in June last year and reached agreement on pricing in September. Under the terms of the final deal signed Tuesday, Iran will supply 750 million cubic feet a day of gas to Pakistan for 25 years.

ipi-pipeline

The pipeline has been on the drawing board since the mid-1990s, when Iran and India signed a deal to transport gas through Pakistan. Dubbed the “Peace Pipeline” because of hopes it would lead to a détente between rivals India and Pakistan, the $7 billion, 2,700-kilometer pipeline project was stalled as the two nations almost went to war in 2001.

India dropped out last year amid continued security concerns in Pakistan’s Baluchistan province, home to a militant Islamist separatist movement, and over disagreements between the parties on pricing.

The scaled-down project could still face further delays. Militants blew up another gas pipeline in Baluchistan in August, highlighting the difficulties Pakistan’s government faces in operating in the poor but resource-rich province. Some details of the Iran-Pakistan pipeline also remain unclear, including how much it will cost and how the countries will finance the project given U.S. opposition.

Gas, Infrastructure, Investment, Natural Gas

World Bank to provide $250 million for boosting natural gas efficiency project

March 20th, 2010

The World Bank will provide $250 million for ‘Natural Gas Production Enhancement and Efficiency Project’ to increase availability and affordability of electricity by improving access to natural gas fuel for power generation through gas sector efficiency enhancements.

According to an updated project report of World Bank, the proposed project would comprise design and implementation of energy sector policy, regulatory, institutional and investment measures to reduce unaccounted-for gas (UFG) from the current level of about 8 percent to closer to international norms (around 1 percent), which would involve: (a) pipeline replacement to eliminate leakages and reduce technical losses; and (b) modernised metering and control systems. The investment component may approximately cut UFG in half, or better, depending on the project’s impact on gas theft.

It would reduce residential consumers’ gas consumption through pilot projects to replace old gas appliances (space heating and/or hot water) that have low efficiency (20-30 percent) with modern, efficient appliances (efficiency 50-70 percent), the report said.

To address the thermal efficiency issue concerning appliances in a broad way with impact beyond the pilot, it would design a gas usage optimisation strategy based on a combination of national priorities and economic costs and benefits, implementation efficiency, and conservation measures. It would enhance institutional capacity in petroleum sector governance, including the regulatory authority (Ogra).

Energy, Investment, Natural Gas, Pakistan

Wind vs Gas in Texas

March 11th, 2010

The conflict between proponents of wind energy and those who oppose it is heating up in Texas. The growth of wind power has attracted powerful critics: the owners of natural-gas power plants.

The gas and wind factions have been clashing over the state’s operating rules for the past several months. The gas people say the playing field is tilted in wind’s favor; wind accuses gas of trying to snuff out the nascent wind energy sector.

tx_windmillThe success of wind power in Texas has come at the expense of natural gas. If the wind build-out continues, by 2013 the amount of gas consumed to make electricity could fall by 18.5%, as gas plants sit idle for longer, according to Tudor Pickering & Holt, a Houston-based energy investment bank.

At the heart of the battle is a fight over the vicissitudes of wind itself. The wind industry argues that since it can’t control when the wind blows, it shouldn’t be held to the same rules that require everyone else to make payments when they fail to deliver promised power. The natural-gas generators say everyone should operate under the same rules, and lament that wind’s success is merely coming at the expense of another relatively clean energy source.

Similar fights are shaping up elsewhere. In the Midwest and Wyoming, fossil-fuel companies are questioning whether wind is getting too many advantages from government.

The lure of harnessing the wind has attracted big players. Wind-farm developers include NextEra Resources, a division of FPL Group Inc., the giant Florida-based power company, and E.On AG, the huge German power company. General Electric Co. is a major manufacturer of 400-foot-tall wind turbines and United Technologies Corp. recently entered the field.

Via: WSJ

Clean Technology, Natural Gas, Wind

KESC Starts New 220 Megawatts Plant

February 27th, 2010

Karachi Electric Supply Company (KESC) recently inaugurated its new 220 MW (megawatt) Combined Cycle Power Plant located in Korangi. The plant, owned and operated by the KESC, has been completed with an investment of Rs 16 billion. It consists of four latest, state-of-the-art high-efficiency gas turbines, one steam turbine and other plant equipmentNote that Abraj Capital assumed management control of KESC in late 2008. The current deficit of electricity in the system stands at around 3,500 megawatts. The KESC has started pre-construction activities for a new 560 megawatts combined cycle power plant at Bin Qasim which would be functional in one and half year

All the big shots, Prime Minister,  Sindh Governor Dr Ishratul Ebad Khan, Chief Minister Qaim Ali Shah, Education Minister Mazharul Haq and others were also present on this occasion. The Prime Minister said that a mix of moderate generation capacity projects like Duber Khwar, Jinnah Low Head Mianwali, Nandipur, 3 Chashnupp, 121 Mega Watts Allai Khwar, Bhikki Power Plant and Liberty Power Tech are some of the prominent power projects in thermal, nuclear and hydro sectors.

Prime Minister said that theft of electricity and non-payment of dues are the biggest reasons of bringing this sector under crisis. “It is a vicious cycle which affects investment in the system and needs to be broken through building better coordination among all stakeholders in the city of Karachi,” he added.

Read more…

Electricity, Energy, Infrastructure, Natural Gas

Efforts to Improve Gas Supply

February 21st, 2010

Federal Minister for Petroleum and Natural Resources on Friday told National Assembly that the government was making serious efforts to end the load shedding of gas from next year. During question hour, he informed the house that the government was giving incentives to the oil and gas exploration companies for ending load shedding from the country.

Pakistan and Iran are expected to sign an agreement on Iran-Pakistan (IP) Gas Pipeline Project in Turkey during March 8-10, 2010. After signing of the project between the two countries, it would be completed within a period of 3-4 years. This would resolve all issues relating to gas load shedding in the country due to smooth supply of gas from Iran on regular basis, he added.

Responding to a question, he said the government is working on a project to import Liquefied Natural Gas (LNG) to meet the domestic requirements. It would also be instrumental in checking shortage of gas. He said that the load management of natural gas was formally observed for the first time on December 1, in 1982. However, due to lack of proper planning in the past the problem could not be resolved. Load management of gas could only end permanently after matching of supply and demand.

Gas, Natural Gas, Pakistan, Petrol

Pakistan Awards LNG Contract To GDF Suez

February 11th, 2010

Government of Pakistan awarded a contract to GDF Suez to supply 3.75 million tons per annum of liquefied natural gas (LNG) for a period of 20 years. This is the country’s first gas import project and efforts are still being made to allow Shell to import additional 2.5 million tons during the same period.

The project envisages supply of up to 500 million cubic feet per day of gas. The price of LNG imported from GDF Suez will be $1.8 billon lower than the rates offered by Shell in the first six years, the import price will be around $9.3 per MMBtu said, G A Sabri, senior petroleum ministry official.

GDF Suez will start supplying the gas to Pakistan by Oct. 2011 according to the initial six-year contact. . The company may also supply 1.5 million tons of LNG annually for the following 14 years under the contract, G.A Sabri said.

Via Ibrahimsajidmalick.com

Natural Gas, Pakistan ,

Drilling For Natural Gas Creates Backlash

January 27th, 2010

There are some new techniques which help to tap into natural gas reserves but there is public concern about damage to environment. A mounting backlash against a technique used in natural-gas drilling is threatening to slow development of huge gas fields.

The U.S. energy industry says there is enough untapped domestic natural gas to last a century—but getting to that gas requires injecting millions of gallons of water into the ground to crack open the dense rocks holding the deposits. The process, known as hydraulic fracturing, has turned gas deposits in shale formations into an energy bonanza.

The industry’s success has triggered increasing debate over whether the drilling methods cause damage to the environment.

Today, the industry estimates that 90% of all new gas wells are fractured. Shale—a dense, nonporous gas-bearing rock—won’t release its gas unless it is cracked open, and other types of formations also produce more gas when fractured. Easier, more porous formations, which don’t require fracturing, were tapped in earlier decades and have largely dried up.

As the industry has honed its techniques, hydraulic-fracturing operations have become more complex, requiring far more water and chemicals—millions of gallons per well, rather than tens or hundreds of thousands of gallons in the past.

Environmentalists and some community activists fear hydraulic fracturing could contaminate drinking-water supplies. They point to recent incidents that they say are linked to fracturing, including a water-well explosion in Dimock, Pa., and a chemical spill here in Shreveport.

The industry says fracturing is safe and argues that there have been only a handful of incidents among the large number of wells that have been fractured over the past 50 years. “Hydraulic fracturing has been used since the 1940s in more than one million wells in the United States. It’s safe and effective,” says Exxon spokeswoman Cynthia Bergman.

Even if the industry can make its case, it still must deal with the public-relations and political fallout from some of the questionable incidents.

Via: Wall Street Journal

Consumers, Energy, Environment, Natural Gas