HYDROCARBONENGINEERING February 2015 February 2015 www.hydrocarbonengineering.com We create chemistry that makes tight oil feedstocks love flexible catalyst technology. BASF’s flexible catalyst technology and advanced technical services provide solutions to improve product yields, solve heat balance problems, and improve metals tolerance for refineries processing tight oils. BASF, the leading supplier of FCC catalysts to the tight oil market, provides a broad foundation of knowledge and operating strategy to deliver value to your refinery. www.catalysts.basf.com/refining contents February 2015 Volume 20 Number 2 ISSNn1468-9340 (03) Comment (53) Pinched performance: Part one (05) World news Contractnawards,nprojectnupdates,nindustrynlatest,nnewsndigest,ndiaryn dates,nmergersnandnacquisitions RalphnWeiland,nNatenHatcher,nandnScottnAlvis,nOptimizedn GasnTreating,nUSA,ndescribenhownabsorbersnbecomenleann endnpinchednwhennthensolvent'sncapacitynfornacidngasngreatlyn exceedsnthenacidngasntonbenremoved (12) The US natural gas story (59) Treating sulfur in wastewater GordonnCope,nContributingnEditor,ndiscussesnthenoutlooknforn thenUSnnaturalngasnsector (18) Benchmarking methodologies TimothynLebrecht,nAirnProducts,nUSA,nandnNeilnHannay,nAirn Products,nUK,noffernseveralnwaysntontreatnH2Sninnwastewatern andndiscussnthenbenefintsnandndrawbacksnofneach (67) Under the inﬂuence CelianHe,nSolomonnAssociates,nUSA,ndiscussesnbenchmarkingn methodologiesnfornestablishingnframeworksntoncontroln greenhousengasnemissions MassimilianonDinFebonandnPaganininPasquale,nIPC,nItaly,ndiscussn theninflnuencenofninletnparametersnonncentrifugalncompressorn surgenlimitnlines (25) Lured to LPG NicknPerkinsnandnDougnGottschlich,nMembranenTechnologyn&n Research,nUSA,ndiscussnmembranentechnologynfornrecoveringn LPG (30) Zeroing in on zero gases StephennHarrison,nLinde,nGermany,ndiscussesnthendevelopmentn ofnzerongasnaccreditation (37) Balancing the beneﬁts StephennFirth,nServomex,nUK,ndiscussesnstrikingnthenbalancen betweenncost,nperformancenandnsafetyninnselectingnthenrightngasn analyser (41) Overcoming the design challenge: Part two StephennSantonandnMahinnRameshni,nRameshnin&nAssociatesn Technologyn&nEngineeringn(RATE),nUSA,ndiscussnhownthen challengesnassociatednwithndesigningnsulfurnrecoverynunitsnwithn anwidenrangenofnH2Snconcentrationsncannbenovercome (48) A new solution RossnE.nDugas,nThenDownChemicalnCompany,nUSA,nandnGaneshn Nayak,nUOPnLLC,nAnHoneywellnCompany,nUSA,ndiscussnhownnewn acidngasnremovalntechnologyncannhelpnprovidenreductionninn economicnlifecyclencost (77) Baﬄing vibrations MantoshnBhattacharya,nPetrofac,nUAE,ndiscussesnthendetectionn andnmitigationnofnmachinerynvibrationnduentonbasenframen resonancen (85) Custom pump design MarcnDeSilva,nJohnnBaileynandnChrisnGraser,nITTnGouldsnPumps,n USA,ndiscussnhowncustomnpumpndesignsncannsolvenuniquen downstreamnapplicationnchallenges (89) Additives analysis DirknArdelt,nPeternIvanov,nOlafnSchulz,nSpectronAnalyticaln InstrumentsnGmbHn&nConKGn(anunitnofnAMETEK,nInc.),n Germany,ndiscussnthenadvantagesnofninductivelyncoupledn plasmanopticalnemissionnspectrometrynfornthenelementaln analysisnofnusednlubricatingnoils (96) Petrochemical tank cleaning GwendolynnVannDenBilt,nShellnNederlandnChemienMoerdijk,n ThenNetherlands,nJessicanM.nHancock,nNalconChampion,n ThenNetherlandsnandnJohnnM.nGarcia,nNalconChampion,n USA,ndiscussnthenchemicalnapproachntonpetrochemicalntankn cleaning (104) 15 facts Thisnmonthnwengivenyoun15nfactsnonnLNG This month's front cover Join the conversation On this month's cover, mechanical erection is under way at the expansion of the REFICAR reﬁnery in Cartagena, Colombia. CB&I is providing technology and EPC services for the project. 2014nMembernofnABCnAuditnBureaunofnCirculations follow @Energy_Global connect Hydrocarbon Engineering like EnergyGlobal join Hydrocarbon Engineering © Copyright nPalladiannPublicationsnLtdn2014.nAllnrightsnreserved.nNonpartnofnthisnpublicationnmaynbenreproduced,nstoredninnan retrievalnsystem,norntransmittedninnanynformnornbynanynmeans,nelectronic,nmechanical,nphotocopying,nrecordingnornotherwise,n withoutnthenpriornpermissionnofnthencopyrightnowner.nAllnviewsnexpressedninnthisnjournalnarenthosenofnthenrespectivencontributorsn andnarennotnnecessarilynthenopinionsnofnthenpublisher,nneitherndonthenpublishersnendorsenanynofnthenclaimsnmadeninnthenarticlesnorn thenadvertisements.nPrintedninnthenUK.nUncaptionednimagesncourtesynofnwww.bigstockphoto.com. It’s what we do. Sandvik sulphur solidification solutions Our acquisition of the technology and know-how of the Brimrock Group means we now offer a full range of solidification solutions, from our proven Rotoform pastillation process and Brimrock RS1500™ granulation to complete block pouring and forming facilities. No wonder we’re known as The Sulphur Company. Sandvik Process Systems Division of Sandvik Materials Technology Deutschland GmbH Salierstr. 35, 70736 Fellbach, Germany Tel: +49 711 5105-0 · Fax: +49 711 5105-152 · [email protected] n Rotoform granulation for premium quality and small/mid-size capacity n Fully automated Brimrock RS1500™ for fast, reliable high capacity granulation n Block pouring for cost effective long term storage n End-to-end process capability – from receipt of liquid sulphur to storage, handling and loading www.processsystems.sandvik.com comment Claira Lloyd Editor O nencan’tnavoidnoilnpricendiscussionnthesendaysnandnonencertainlyn can’tnavoidnpassingncommentsnaboutnpetrolnprices.nSo,nInwantn tontakenanslightlyndifferentnturnnandntakenanlooknatnthenadvancedn biofuelsnmarket,nasndespitenoilnandnoilnproductsncurrentlyntakingnthenlimelightn therenarensomendiscussionnpointsnflnoatingninnthenbiofuelsnrealmnthatnI’dnliken tonbringntonyournattention.n Inoftennfinndnthatnpeoplenareninnonenofntwoncamps,nthosenwhonseenthen prosninnbiofuelsnandnthosenwhonseenthencons.nI’mnafraidnI’mnthenexceptionnton thenrulenandnamnratherninnthenmiddle.nFirstly,nit’snmostnlikelynthatnbiofuelsnandn particularlynadvancednbiofuelsnarengoingntonplaynanpartninnthenfuturenenergyn mixnasnpolicynlooksntoncombatnclimatenchangenandnkeepntonthen2˚Cnrule,nson theynaren’tngoingnanywhere.nSecondly,nthenbiofuelsnmarketnisngrowing.nE2n EnvironmentalnEntrepreneursnsaidninntheirn‘AdvancednBiofuelnMarketnReportn 2014’nthatncapacitynbetweenn2014nandn2017nfornthenproductionnofnbiofueln gasolinenequivalentnisngoingntonincreasenfromnapproximatelyn800nmillionn gallonsnton1.7nbillionngallons,nsonobviouslynthisnisnansectornonnthenup.nAlso,nasn thenindustryngrowsnmorenjobsnarengoingntonbenbroughtnintonthenglobalnmarketn asnwellnasnmorenmoneynintontheneconomy.nHowever,nthennegativesnandn challengesnarenwhatnkeepnmenfromnjoiningnthenpronbiofuelsnteam. Onenofnthenmainnchallengesnfacingnthenadvancednbiofuelsnsectornisnthatn ofnregulatoryninstabilitynandnthisnisnparticularlyntrueninnthenUS.nThenRenewablen FuelnStandardn(RFS)nisnancontinuousnpointnofndebatenandncontentionnbetweenn thenEnvironmentalnProtectionnAgencyn(EPA)nandnassociationsnsuchnasnthen AmericannPetroleumnInstituten(API)nandnAmericannFuelnandnPetrochemicaln Manufacturersn(AFPM)nandnwasnespeciallynsoninn2014nasnthenEPAncontinuesn tondelaynthenpublicationnofnrequirednRFSnlevels.nThenCalifornianLownCarbonn FuelnStandardn(LCFS)nisnanothernpointnofndiscussionninnthenUSnfornthenbiofuelsn sectornasnthenstandardnhasnbeennfrozennatn2013nlevelsnthroughoutnthisnyear.n So,nthenchallengenregulatorynuncertaintynposesnisnthatncompaniesnneedn contact info MANAGING EDITOR James Little [email protected] PRODUCTION Chloe Ozwell [email protected] WEB MANAGER Tom Fullerton [email protected] EDITOR Claira Lloyd [email protected] EDITORIAL ASSISTANT Emma McAleavey [email protected] ADVERTISEMENT DIRECTOR Rod Hardy [email protected] ADVERTISEMENT MANAGER Chris Atkin [email protected] ADVERTISEMENT EXECUTIVE Will Powell [email protected] SUBSCRIPTION RATES Annualnsubscriptionn£110nUKnincludingnpostage /£125/e175overseasn(postagenairmail) /US$175nUSA/Canadan(postagenairmail).n Twonyearndiscountednraten£176nUK includingnpostage/£200/e280 overseasn(postagenairmail) /US$320nUSA/Canadan(postagenairmail). certaintynandnstabilityninngovernmentnpoliciesn innorderntonfeelncomfortablenandnconfindentninn advancingnthenbiofuelsnsectornfurther,nandnthisnisn indeedntruenfornanynsector. nFeedstocknfornthenproductionnofnadvancedn biofuelsnisnanothernchallenge.nWhennitncomesn tonfinrstnandnsecondngenerationnbiofuels,nthenchallengesnhavenbeennthen competitionnbetweennfeedstocknbeingnusednforntheirnproductionnandnbeingn usednasnanfoodnsource.nFornadvancednbiofuelsnthenhurdlenisnfinndingnanreliablen andnwidelynavailablenfeedstocknthatnwillnprovidencommercialnsuccess.nAtnthen moment,nwastensourcesnsuchnasnfats,noilsnandngreasesncannbenprocessednasn wellnasnpurposengrownnsources,nhowever,nnotnonensinglensourcenhasnbeenn optimisednyet.nThenresearchnthatnneedsntonbencarriednoutntondevelopnsuchnan resourcenneedsninvestment,nwhichnbringsnmentonthennextnchallengenfacednbyn thensector,nmoney. Fornadvancednbiofuelsntonbecomenanrealncontenderntonoilnproductsn andnmakenannimpact,ntheynneedntonbencostncompetitivensonoperationalnasn wellnasncapitalncostsnneedntonbenlowered.nButnwhennitncomesntonoperatingn costsntherenisnanbitnofnanviciousncirclenasnfeedstocknisnthenmainncost,nandnatn thenmomentnitnisnverynexpensivenasntherenisnnotnanwidelynavailablenandn100%n optimisednsource,nandnthisnneedsninvestment.nWhennitncomesntoncapitaln costs,nbiorefinneriesnthatnoperatenonnanlargenscalenhavencapitalnexpensesnthatn cannrangenbetweennUS$5nandnUS$20nperngallonnwhichnisnlargernthanncruden oilnrefinneriesnwhichnarenfarnmorensubstantiatedninnthenmarket.nSo,nsomethingn needsntonbendonentherentonhelpnthenindustrynlowernitsnoverallnoperatingn costs.n Overall,nduentonthenabovenI’mnneithernpronnornantinbiofuelsnandn advancednbiofuelsninnparticular.nButnwhatnisnclearntonmenisnthatnthensectorn hasnanlotnofnpotentialnbutnneedsntonfinndnsettledngroundnwhennitncomesnton policies,nfeedstocksnandnmoneynbeforenitnbeginsntonmakenanbignimpactnonn thenenergynmix. WEB EDITOR Callum O’Reilly [email protected] CIRCULATION MANAGER Victoria McConnell [email protected] SUBSCRIPTIONS Laura Cowell [email protected] 15 South Street Farnham Surrey GU9 7QU ENGLAND Tel: +44 (0) 1252 718 999 Fax: +44 (0) 1252 718 992 OFFICE ADMINISTRATOR Jo Repton [email protected] CONTRIBUTING EDITORS Nancy Yamaguchi Gordon Cope PUBLISHER Nigel Hardy SUBSCRIPTION CLAIMS Claimsnfornnonnreceiptnofnissuesnmustnbenmadenwithinn3nmonthsnofnpublicationnofnthenissuenorntheynwillnnotnbenhonouredn withoutncharge. APPLICABLE ONLY TO USA & CANADA HydrocarbonnEngineeringn(ISSNnNo:n1468-9340,nUSPSnNo:n020-998)nisnpublishednmonthlynbynPalladiannPublicationsnLtdn GBRnandndistributedninnthenUSAnbynAsendianUSA,n17BnSnMiddlesexnAve,nMonroenNJn08831.nnPeriodicalsnpostagenpaidnNewn Brunswick,nNJnandnadditionalnmailingnoffinces.nnnPOSTMASTER:nnsendnaddressnchangesntonHYDROCARBONnENGINEERING,n 701CnAshlandnAve,nFolcroftnPAn19032 Trust the #1 online monitoring system for mission-critical equipment Machinery uptime is at your fingertips Which monitoring system gives you the most time to respond? Maximize lead times with PROGNOST® – the #1 system in early failure detection. You get the early warnings you need to make well-informed decisions and cut maintenance costs. [email protected] www.prognost.com w rld news Francen| BIOAROMATICS PRODUCTION A nellotechnInc.,nIFPnEnergiesn Nouvellesn(IFPEN)nandnitsn subsidiarynAxensnhavenannouncednan strategicnalliancentondevelopnandn commercialisenannewntechnologynforn thenlowncostnproductionnofnbiobasedn benzene,ntoluenenandnparaxylenenusingn Annellotech'snprocessnofncatalyticnfastn pyrolysisn(CFP)nonnnon-foodnbiomass.n Thentechnologynwillnaddressnlargen scalenunitsnandnproducenpurifinedn aromaticsnstreamsnsuitablenfornmodernn derivativenproductionnprocessesnatnan competitivenpricenwithnrespectnton theirnpetroleumnbasedncounterparts. Thennewntechnologynisnintendedn tonopennthenwayntonancompetitiven productionnofnbioaromaticsnfromn renewablenresourcesnwithnlowern energynconsumptionnandnlowern carbonndioxidenemissions.nThesendropn inngreennversionsnofnwidelynusednbasicn petrochemicalsnarenutilisednasnrawn materialsninnthenproductionnofn consumerngoodsnsuchnasnplasticn bottles,nclothing,ncarpeting,n automotivenparts,nasnwellnasnothern USAn| A everydaynconsumernandnindustrialn products. Thengoalnofnthisncodevelopedn alliancenisntoncombinenresearchnandn developmentnwithncommercialnscalenupn knowledgenandnresourcesntonachieven processndevelopmentnandn commercialisationnofnthenCFPn technologyninnthenshortestnpossiblen time. Withinnthenalliance,nAnellotechnwilln continuenitsnresearchnworknatnthenPearln Rivernfacilitynonnthencleanntechnologyn platformnforninexpensivelynproducingn bionbasednaromatics.nIFPENnwillnmainlyn focusnonnprocessnscalenupnandn hydrodynamicnstudiesnatnitsnLyonnsite,n France,nandnAxensnwillnfinnalisen developmentnandnbasicnplantndesignnandn preparenthentechnologynforn commercialisation.n Itnisnexpectednthatnthentechnologyn willnbenreadynfornindustrialn implementationninn2019.nAxensnwilln marketnandnlicensenthentechnologyn globallynandnprovidendesignnandnstartn upnservices. SYNGAS TO LIQUIDS PROJECT mecnFosternWheelernhasnsignednann agreementnwithnD'ArcinoffnGroup,nan USnbasedninvestmentnandnalternativen technologyndevelopmentncompany,nton providenengineeringnandntechnicaln servicesnfornannintegratedn30n000nbpdn syngasntonliquidsnfacility,nknownnasnWestn TexasnRenewablenandnGasnMonetisationn ProjectninnHudspethnCounty,nTexas. ThenWestnTexasnRenewablenandnGasn MonetisationnProjectnisnpartnofnthen D'ArcinoffnEnergynProgram,nann environmentallynclean,nnaturalngasnandn biomassntonliquidnfuelnandnpowern generationninitiative.nAmecnFostern Wheeler'snscopenofnworknincludesn engineeringndesignnandndefinnitionnwork,n utilisingnkeynprocessntechnologynandn equipmentnsuppliers,nasnwellnasn executionnplanningnactivitiesnfornthen facilitynthatnwillnusenbiomassngasifincationn combinednwithnWestnTexasnshalengasnton feednanFischernTropschnprocessnunitnton producenjetnfuel. Thencontractnvaluenwasnnotn disclosed. Swedenn| BIOGAS PLANT G öteborgnEnerginhasnannouncednthatn GoBiGas,nthenworld'snfinrstnevernlargen scalendemonstrationnplantnfornthen productionnofnbiogasnthroughnthen gasifincationnofnbiofuelsnandnresiduesn fromnforestry,nisnnowninnoperation. HaldornTopsoenA/Snprovidedn licensing,ncatalystnandnengineeringnforn thengasncleaningnasnwellnasnthen methanationnsectionnfornthenprojectn enablingnthenplantntonproducen substitutennaturalngasn(SNG)nbynthermaln gasifincationnofnforestnresiduesnsuchnasn branches,nrootsnandntops.nThenbiomassnisn convertedntongasnwithnanmethanen contentnofnovern95%nandnthenplantnhasnan capacitynofn20nMWnSNG. ThenGoBiGasnprojectnconsistsnofn twonprimarynphases.nPhasenonenhasn focusednonnestablishingnthen demonstrationnplantnnowninnoperationn whilenthensecondnphasenisntonexpandnton anfullnscalencommercialnplantnwithnan capacitynofn800n1000nGWh. Belgiumn| ENGINEERING CONTRACTS J acobsnEngineeringnGroupnInc.nhasn receivednancontractnfromnBPnChembeln NVnfornbasicnandndetailednengineeringn servicesntonupgradenitsnfacilitiesninnGeel,n Belgium.nUndenthentermsnofnthencontract,n Jacobsnisninstallingnnewnequipmentnandn performingnupgradesninnthenfacility'snPTAn units.nBP'snGeelnsitenisnanmajornproducern ofnpurifinednterephthalicnacidnandn paraxylene,ntypicallynusedninnthen manufacturenofnpolyesters.nThengoalnofn thisnprojectnisntonoptimisenoperationaln performancenofnthenBPnGeelnfacilities. HYDROCARBON ENGINEERING 5 February 2015 w rld news INBRIEF Kuwaitn| SAUDI ARABIA AVEVAnhasnannouncednthenopeningnofn itsnnewnofficeninnthenKingdomnofnSaudin Arabia.nThennewnofficenstrengthensnitsn presenceninnthenMiddlenEastnandnfurthern enhancesnitsngrowingnglobalnnetwork.nThen officenwillnoffernsalesnandnsupportnfornalln ofnAVEVA'snsolutionsnandnservices. KENYA Interteknisnexpandingnitsncontractnwithn thenKenyanBureaunofnStandardsn(KEBS)ninn providingncertificationnservicesnasnpartn ofnthenongoingnPre-ExportnVerificationn ofnConformitynProgrammen(PVoC).nThen PVoCnProgrammenverifiesnthenconformityn ofnallnregulatednproductsninnthenexportingn countries,nensuringntheyncomplynwithn national,nregionalnorninternationaln standardsnandntechnicalnregulations. USA Constellation,nansubsidiarynofnExelonn Corporation,nhasnannouncednann agreementnwithnCNGnFuel,nInc.ntonacquiren sevennCNGnfuelingnstationsninnIndiananandn Ohio.nConstellationnwillnownnandnoperaten thenstationsnasnpublic/privatenaccessn fuelingnsitesnfornregionalnandninterstaten transportationnfleets. OMAN AmecnFosternWheelernhasnannouncednthen awardnofnancontractnbynthenOmannTankn TerminalnCompanyn(OTTCO)nfornthenfrontn endnengineeringndesignnofnthenRasnMarkazn OilnParknProjectninnOman.nThenprojectn involvesnthenphasedndevelopmentnofnan terminalndesignedntonholdnapproximatelyn 200nmillionnbblsnofncrudenoil,nmakingnitn onenofnthenlargestnoilnstoragenfacilitiesnofn itsntype.nThenfirstnphasenofnthenproject,nforn approximatelyn25nmillionnbblsncapacity,nisn plannedntonbenonstreamnbynthenendnofn2018. February 2015 6 HYDROCARBON ENGINEERING HEAVY OIL PROCESSING PROJECT P etrofacnhasnreceivednannawardn notifincationnfornthenfinrstnphasenofn KuwaitnOilnCompany'sn(KOC)nLowernFarsn heavynoilndevelopmentnprogramme,n whichnisnlocatedninnthennorthnofnthen country. Withnantotalnprojectnvaluenofnmoren thannUS$4nbillion,nPetrofacnisnleadingnan consortiumnwithnGreecenbasedn ConsolidatednContractorsnCompanyn (CCC)nasnitsnpartner. USAn| EMISSIONS CONTROL DEAL C learSignnCombustionnCorporationn hasnsignednannagreementnwithnTricorn Refinning,nLLC,nfornthendeploymentnofnitsn Duplex™nburnerntechnologynatnTricor'sn refinneryninnBakersfineld,nCalifornia.nTricorn willnretrofintnansinglenburnern 15n000nBtu/hrnverticalnrefinnerynheater,n mothballedninn1984nbecause,nuntilntoday,n nontechnologynexistedntonallownitnton economicallynmeetnemissionsntargets,n withnClearSign'snunique,npatentnpendingn Duplexnburnernarchitecture.nOnn completion,nTricornwillnrecommissionnan criticalnasset,nexpandingnplantncapacityn andnprofintability,nwhilenmeetingn Australian| C Thenscopenofnthenworkncoversn greenfineldnandnbrownfineldnfacilitiesnandn includesnengineering,nprocurement,n construction,nprencommisioning,n commissioningn(EPC),nstartnupnandn operationsnandnmaintenancenworknforn thenmainncentralnprocessingnfacilitynandn associatedninfrastructure. ThenEPCnelementnofnthenprojectnisn anticipatedntonbencompletedninn approximatelyn52nmonths. stringentnenvironmentalnrequirementsninn ancostneffectivenmanner.nClearSignnwilln executenthisnprojectninncollaborationn withnAdvancednCombustionnandnProcessn Controls,nInc. Tricornevaluatednseveraln technologies,nbutnClearSign'snsolutionn uniquelynofferednthenpotentialnton achievenultranlownNOXnemissionsnandn optimisenthenperformancenofntheirn existingnequipment,ninnthisncase,nbringingn anstrandednassetnbackntonlifenaftern decades.nAsnanresult,nTricornanticipatesn bringingnnewncapacitynonlinenandn improvingntheirnbottomnline. LNG SUPPLY AGREEMENT hevronnCorporationnhasnannouncedn thatnitsnAustraliannsubsidiariesnhaven signednanbindingnsalesnandnpurchasen agreementn(SPA)nwithnSKnLNGnTradingn PtenLtd.nUndernthenSPA,nSKnLNGnTrading,n whichnisnpartnofnanleadingnindustrialn conglomerateninnSouthnKorea,nwilln receiven4.15nmillionntnofnLNGnovernanfinven yearnperiodnstartingninn2017. Duringnthentimenofnthisnagreement,n overn75%nofnChevron'snequitynLNGnfromn Gorgonnwillnbencommittednton customersninnAsia. ThenChevronnoperatednGorgonn Projectnisnanjointnventurenofnthen AustraliannsubsidiariesnofnChevronn (47.3%),nExxonMobiln(25%),nShelln(25%),n OsakanGasn(1.25%),nTokyonGasn(1%)nandn ChubunElectricnPowern(0.417%). ThenGorgonnProjectncombinesnthen developmentnofnthenGorgonnFieldnwithn nearbynJansz-lonField.nFacilitiesnbeingn builtnonnBarrownIslandnincludenanLNGn facilitynwithnthreenprocessingnunitsn capablenofnproducingn15.6nmillionntpynofn LNG. FLOW EQUIPMENT LEADERSHIP NGL recovery technology that is pre-engineered for faster time to market Cameron’s pre-engineered NGL recovery solution, CRYOCAM™, is a modular and complete gas processing system that provides quicker delivery, recovers more than 97% of ethane and reduces life-cycle costs. With CRYOCAM, Cameron puts you in the position to maximize your operation’s potential. The sooner you’re up and running, the faster your product goes to market. Our experience, from delivering large systems to life-of-field services, leads to increased uptime reliability and lower operating costs. Rely on Cameron as your single-source solution. Visit www.c-a-m.com/cryocam for more information or contact us at [email protected]. Visit Cameron at the 94th Annual GPA Convention in San Antonio, TX - April 12-15, 2015 AD01713P RAISING PERFORMANCE. TOGETHER™ w rld news INBRIEF USAn| UK M USA Perun| MottnMacDonald,nanleadingnglobaln management,nengineering,nandn developmentnconsultancynhasnannouncedn thatnitnisntonstandardisenthenusenofn Intergraph®nSmartPlant®nsolutionsnacrossn itsnoilnandngasnbusiness.nThendecisionn wasnpromptednbynthensuccessnofnthen company’snadoptionnofnIntergraphnSmart™n 3DnfornparticularnprojectsninnthenMiddlen East.nThensoftwarenwillnbenrollednoutnton thenconsultancy’snofficesninnthenUK,nUAE,n OmannandnIndianovernthennextnyear. HardidenCoatingsnhasninvestedninnannewn Virginianmanufacturingnplantnworthn £4.5nmillion.nThenfacilitynisnexpectedntonben operationalninnthenfourthnquarternofn2015n andntoncreatenupnton29njobsninnthenfirstn threenyears. THE NETHERLANDS BPnhasnannouncednthatnitnintendsntonselln itsn950n000nm3noilnstoragenterminalninn Amsterdam.nThenBPnAmsterdamnTerminaln actsnasnanninternationalntradingnhubnforn supplyingnfuelsntonandnfromnEurope.nThen terminalnalsonsuppliesndieselnandngasolinen tonlocalnandnregionalnpetrolnstations. UK AtlasnCopco'snSystemsnHemelnHempsteadn customnengineeringnworkshopnhasn beennofficiallynopenednfollowingnthen completionnofnan£680n000nupgrade.nThen workshop,nonenofnAtlasnCopco'snsixnglobaln competencencentresnthatndesignnandn assemblenbespokencompressednairnandn nitrogenngenerationnpackagesnprimarilyn fornthenoilnandngasnindustry,nhasnmoren thanndoubledninnsizenandnbeennequippedn withnanrangenofnnewnfacilitiesninnordernton meetngrowingninternationalndemand. February 2015 8 HYDROCARBON ENGINEERING AIR SEPERATION UNIT ATHESONnhasnenterednintonann agreementnwithnSasolntonsupplyn tonnagenoxygennandnnitrogenntonSasol'sn worldnscalenethanencracker,nwhichnisn partnofnSasol'snUS$8.1nbillionnexpansionn innLakenCharles,nLouisiana. MATHESON'snnewnairnseperationn unitn(ASU)nisntonaugmentnexistingn operations,nsupplyingnbothnSasolnandn existingncustomersnwhilenalsonprovidingn fornadditionalnexpansionninnthenLaken Charlesnarea.n LONG TERM SERVICES AGREEMENT G EnOiln&nGasnhasnbeennawardednan longntermncontractualnservicesn agreementn(CSA)nthroughnGeneraln ElectricnInternationalnPeruntonsupportn thenPERUnLNGnS.R.L.nLNGnfacilityninn PampanMelchorita,nPeru,n approximatelyn100nmilesnsouthnofn Lima. Thenplantnhasnannestimatedn productionncapacitynofn4.4nmillionntn ofnLNG.nThencomplexnalsonconsistsnofn twonstoragentanks,neachnwithnan 130n000nm3ncapacity,nanmarinen terminalnandnansupplynpipeline. ThenCSAnagreementnwillncovernthen plant'snservicesnrequirementsnforn 13nyears.nUndernthennewnCSA,n Turkeyn| A ThenASUnandnpipelinenwillnben constructed,nownednandnoperatednbyn MATHESON.nThenASUndistillationn columnsnwillnbenengineerednandn manufacturednutilisingnthentechnologyn andnfacilitiesnofnMATHESON'snparentn company,nTaiyonNipponnSanson Corporationn(TNSC)ninnJapan.n AccordingntonLouisiananEconomicn Developmentn(LED),novern130ndirectnandn indirectnjobsninnLouisiananwillnben traceablentonthenMATHESONnproject. GEnOiln&nGasnwillncovernallnmajorn maintenancenrequirementsn(includingn parts,nrepairsnandnfineldnservices)nfornthen plant'snliquefactionntrain,nwhichnisn comprisednofnGEn7EAnunitsnandn compressorsnwithnassociatednauxiliaries.n ThenCSAnwillnalsoncovernthensite'snpowern generationnequipment,nwhichnconsistsn ofnthreenGEnLM2500+naeroderivativen gasnturbinengeneratorsnandnauxiliaries. Innadditionntonmajornmaintenance,n GEnOiln&nGasnwillnalsonprovidenan residentnsupportnteamntonassistnwithnalln aspectsnofnmaintenancenonnGEn equipmentnasnwellnasnanPredictivityn packagenfornremotenequipmentn monitoring.n QUALITY AND EFFICIENCY BOOST VEVAnhasnannouncednthatnPromern ConsultancynandnEngineeringn Companynhasnselectednitsnintegratedn engineeringnandndesignnsolutionsnforn majornengineeringnprojects,nwithn customersnincludingnTurkey'snlargestn oilnandngasnowner/operator.nInnordern tonmeetnthenrequirementsnforn increasednprojectneffinciencynandnhighern qualityndeliverables,nPromernwilln deploynthenAVEVAnsolutionsnonn greenfineldnenergynandnminingnprojects.n Itnwillnalsonutilisenthenoutnofnthenboxn capabilitiesnofnAVEVAnEverything3Dnton readnLFMnSoftwarenLimited'snlasernscann datasetsntonreducenreworknonn brownfineldnoilnandngasnrevampn projects. Jeffrey J. 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For more information check out our new video at petrochemical.blaschceramics.com Or contact us: 800.550.5768 [email protected] w rld news igest d s w ne | DIARYDATES 15 - 18 February Middle East Turbomachinery Symposium SheratonnDohanResortn&nConferencenHotel Doha,nQatar Tel:n+1n979845n7417 Email:[email protected] 17 - 18 February ME-TECH MadinatnJumeirah Dubai,nUEA Tel:n+971n(0)4n421n4642 Email:[email protected] 22 - 25 February Laurance Reid Gas Conditioning Conference NCEDnConferencenCenternandnHotel Norman,nOklahoma Tel:n+1n405n325n3891 17 - 19 March StocExpo 2015 AhoynRotterdam Tel:n+44n(0)20n8843n8804 Email:[email protected] 18 - 19 March ARTC 18th Annual Meeting Bangkok Tel:nn+n852n3411n4702 Email:[email protected] 22 - 24 March AFPM Annual Meeting MarriottnRivercenter SannAntonio,nTexas Tel:n+1n202n457n0480 Email:[email protected] February 2015 10 HYDROCARBON ENGINEERING FitchnRatingsn| SLOWING GROWTH? T hensharpndropninnoilnpricesnandn announcednrevisionsntonexplorationn andnproductionncapitalnexpendituren budgetsncouldnimpactnmasternlimitedn partnershipnspendingn(MLP)ninnthenshortn run,nbutnansustainednpricendropncouldn rampnupnmergernandnacquisitionn activityninnthenspace,naccordingntonFitchn Ratings.n ManynNorthnAmericannexplorationn andnproductionncompaniesnhaven announcedndownwardnrevisionsninn2015n Worldwiden| spendingnornarenrevisingntheirnnumbersn downwardninnresponsentonfastndecliningn oilnprices.nCutsnannouncedntondaten include:nConocoPhillipsn(20%),nPioneern (21%),nSanchezn(30%),nConchon Resourcesn(33%),nOasisnPetroleumn(45%)n andnLinnnEnergyn(53%). AnmajornfocusnofncutsnhasnbeennUSn shalenproperties,ngivennthentypicallyn highndegreenofnflnexibilityninnshalen budgets,nversusnstickiernprogramsnsuchn asnbignoffshorenprojects.n REVIEWING THE LNG INDUSTRY T henLNGnindustryncelebratednitsn50thn birthdayninn2014nbutnwhilenthen industrynmaynhavenmatured,nWoodn Mackenzienfinndsninnitsnannualnreviewn thatnit'snstillnnotnshortnofnsurprises. GilesnFarrer,nWoodnMackenzie'sn PrincipalnAnalystnfornglobalnLNGnsaid,n "productionnwasnupn5nmillionntpynton 246nmillionntpynandnoverallntradenwasn boostednbynhighernlevelsnofn reexports.nButnthenbignsurprisenwasn thatnAsiannLNGndemandnwasnmuchn lowernthannexpected.nDemandninn emergingnmarkets,nlikenChina,nfailedn tongrowntonthenextentnanticipatedn andndemandninnthenestablishednSouthn Koreannmarketnfellnconsiderably". LowerndemandnfromnAsian contributedntonthencrashninnLNGnspotn pricesnlastnyear,nwhichnfellnfromnanpeaknofn overnUS$20/millionnBtunonnValentine'sn DayntonundernUS$10/millionnBtunatn Thanksgiving.nFarrernadded,n"pricesn droppedninnthensummernasnnewnsupplyn fromnPNGnLNGnandnreducednAsiann demandnleftnthenPacifincnbasinnlongnsupply.n Thennfellnfurther,nasnBrentnoilntumbledn fromnUS$110/bblninnAugustntonbelown US$60/bblninnDecember". AsnWoodnMackenzie'snreportnshows,n 2014nwasnthenyearninnwhichnthenlongn awaitednwavenofnnewnPacifincnsupplyn startedntonarrive:nPNGnLNGnbegann productionninnMay,nandnhadnan phenomenalnyear,nreachingnfullncapacityn fromnbothntrainsninnfinvenmonths.n However,nthisnwasninnmarkedncontrastn tonAngolanLNG,nwhichndespitenonlyn startingnupninnJunen2013,nwasnshutninnMayn 2014nfornextensivenrepairs.nSonatrachn alsonstartednproductionnatnthenArzewn GL3ZntrainninnOctobernandnBGnshippedn thenfinrstncargonfromnitsnAustraliann QCLNGnprojectnonn5nJanuaryn2015. APIn| STATE OF THE UNION A mericannPetroleumnInstitute'sn(API)n PresidentnJacknGerardnhasnsuggestedn thatnPresidentnObama'snremarksnaboutn oilnandnnaturalngasninnhisn2015nStatenofn thenUnionnaddressnfellnshortnofn acknowledgingnthentruenimpactnofnthen energynrenaissancenonnthenUSneconomy.n "America'snenergynrenaisancenhasn profoundlynstrengthenednourn economynandnisnhelpingnthen presidentnfulfinllnmanynofnhisnpolicyn goals.nButnhisnspeechndidnnotnevenn beginntontellnthenwholenstory",n Gerardnsaid. MAN Inside Reliable solutions for the long run Isothermal and Gear-type compressors Process-gas screw compressors Axial compressors Reactors Centrifugal compressors Steam turbines Expanders Marine Engines & Systems Power Plants Turbomachinery After Sales We build rock solid components for a broad range of applications in reneries and petrochemicals. Whether for hydrogen production and recovery, desulfurization, uid catalytic cracking (FCC), PTA, Fertilizer or IGCC – our axial, screw and centrifugal compressors, as well as our steam turbines and reactors are built to achieve the highest level of availability. Redening reliability today and tomorrow. Find out more at www.mandieselturbo.com February 2015 12 HYDROCARBON ENGINEERING The US natural gas story Gordon Cope, Contributing Editor, discusses the outlook for the US natural gas sector. T henUSnisn experiencingnanoncen innangenerationn revolution.nInnstatesn unfamiliarnwithnfossilnenergyn (likenOhionandnPennsylvania),n tonregionsnthatnhavenlongnbeenn associatednwithnenergyn(liken Texas),nantsunaminofnnaturaln gasnisnflowingnfromnthengroundn innevernincreasingnabundance.n ThenMarcellusnandnUtican shalesninnthenUSnnortheast,nforn instance,narenproducingnatn recordnrates;noutputnfromnthen Marcellus,nwhichnstoodnatn 2nbillionnft3/dninn2010,nhasnnown surpassedn15nbillionnft 3/d.nThen EnergynInformationn Administrationn(EIA)nrecentlyn notednthatngasnproductionninn thenLowern48nisnnownjustnshyn ofn80nbillionnft3/d,nalmostn doublingnproductionnsincen 2007.n Whilennaturalngasnisnmostlyn madenofnmethane,nitnalson containsnanhostnofnothern components.nNaturalngasn liquidsn(NGLs),nincludingn butane,npropanenandnethane,n cannbenstrippednfromngasnandn putntonuseninnanmyriadnofnways.n Thenlowncostnandnwidespreadn availabilitynofnethane,ninn particular,nhavengalvanisednthen petrochemicalnsector.n AccordingntonthenAmericann FuelnandnPetrochemicaln Manufacturersn(AFPM),n chemicalncompaniesnhaven announcedn148nprojects,nbothn newnandnexpansions,nworthn overnUS$100nbillion,nenoughnton createnannestimatedn637n000n permanentnnewnjobs.nAmongn thenmostnrecentn announcements; nn Sasolnisnmovingntowardnan finalninvestmentndecisionn tonexpandnitsn petrochemicalnassetsninn Louisiana.nThenSouthn Africanncompanynwillnaddn annethanencrackernandnann integratedngasntonliquidsn andnchemicalsnfacilitynton itsnLakenCharlesnsite.nFluorn TechnipnIntegratednwillnben thenproject’snprimaryn engineering,nprocurementn andnconstructionn contractor.nThenprojectnisn expectedntoncostnbetweenn US$11n-n14nbillion. HYDROCARBON 13 ENGINEERING February 2015 nn Westlake Chemical is investing US$330 million to expand ethylene capacity at its plant near Lake Charles, Louisiana. Currently, the plant has a capacity of approximately 1.2 million lb/d. The expansion, which is expected to be complete in early 2016, will add another 680 000 lb/d. nn Badlands NGL has announced it will build a n US$4 billion polyethylene plant in North Dakota. The plant will source ethane from Bakken shale oil production, helping to cut flaring in the state. Badlands is currently selecting a plant site; when completed in 2017, the facility will have a capacity of 3.3 billion lb/y. nn ExxonMobil is expanding its Baytown Texas refining and petrochemical complex by adding an ethylene plant. Germany’s Linde Group and Bechtel will design and build the 1.55 million tpy plant. Construction on the facility began in 2014. nn Yuhuang Chemical plans to spend US$1.85 billion on the first phase of a methanol manufacturing complex in Louisiana. It intends to build two methanol plants with a total of 3 million tpy capacity, and a methanol derivatives plant to make intermediate chemicals. The first phase is slated to begin operations in 2018. nn Chevron is examining the potential 10 000 tpy expansion of polyalphaolefins (PAO) capacity at its Cedar Bayou petrochemical complex in Baytown, Texas, bringing it to a total of 58 000 tpy. Chevron has already added a 1.5 tpy ethane cracker to the complex and plans to boost normal alpha olefins (NAO) production by 100 000 tpy. nn Shell recently purchased an industrial site in Pennsylvania to build its proposed petrochemical facility. The Appalachian Complex includes a 1.5 million tpy ethane cracker, three polyethylene units totaling 1.6 million tpy capacity, as well as power, steam generation, water treatment and related installations. While a final investment decision has yet to be made, the facility, when eventually built, would rely on Shell’s Utica and Marcellus production for feedstock. Complications The abundance of gas has led to a shortage of pipeline capacity in some regions. The issue is felt most acutely in basins where the focus has been on oil rich shale. In North Dakota, where Bakken production has expanded by n 1 million bpd in only a few years, midstream operators are scrambling to replace crude by rail transport with liquids pipelines. The production of gas in association with the crude is seen as a byproduct, and millions of cubic feet are flared off. The governor of North Dakota, Jack Dalrymple, has been quite vocal against the wasteful practice. US operators are looking to new markets on the continent. Midstream companies have been creating pipeline links to the Mexican border in Texas and Arizona in order to send large amounts of gas south. Mexico’s Federal Electricity Commission recently estimated that new and existing lines will have the capacity to deliver almost n 6 billion ft3/d (mainly to new natural gas powered electricity plants) within a few years. To the north, Canada is also receiving large amounts of natural gas from the US due to the explosive growth of the February 2015 14 HYDROCARBON ENGINEERING Marcellus shale. The Tennessee Gas Pipeline system, once an export point for Canadian gas, has been reversed and now supplies almost 0.5 billion ft3/d to Ontario and Quebec. Energy Transfer Partners announced it is nearing a final decision on its Rover project, which would ship Marcellus and Utica gas to the Midwest, Gulf Coast and Canada. The line would deliver up to 3.25 billion ft3/d in total; the entry point for Canada would be near Detroit, in Sarnia, Ontario. Gas producers are also eager to export to Asia and Europe, where gas is selling at far higher returns. The global LNG market is expanding at 3 billion ft3/d, and is expected to reach 53 billion ft3/d by 2020. Cheniere Partners, which owns an LNG import terminal in Sabine Pass, Louisiana, has been contracting with various international firms to ship LNG to Europe. Construction of the US$6.5 billion liquefaction train is expected to be finished by 2015. Utilities see natural gas as a practical and clean alternative to coal. Upfront capital costs for turbines are significantly lower, and the latter produce much less greenhouse gases (GHGs), nitrous oxides (NOx), sulfur oxides (SOx) and other pollutants. The growing costs of environmental compliance weigh heavily in natural gas’ favour when priced out over several decades. The use of natural gas as a vehicle fuel is also being promoted. Only a small percentage of fleet vehicles currently run on compressed natural gas. But Ford, Chrysler, Honda and other car manufacturers have been building consumer vehicles for several years, and most diesel and gasoline engines can be converted with kits. Although the US Senate’s State Natural Gas Act of 2012 (which called for US$100 million in grants to build a refuelling infrastructure and bolster the existing US$7500 vehicle tax credit to US$10 000 through 2016), died in the previous Congressional session, much interest remains; even if the US ups its natural gas fleet to only 10% of all vehicles, it would have significant effect on the gas sector. All of these alternate markets have the potential to significantly reduce the supply glut, leading to eventual price rises. Should gas soar to prices seen in the mid 2000s, petrochemical manufacturers and other major industries are concerned that their investments might be stranded. In addition, an ethane glut is causing the commodity price to tank. Ethane has dropped from 77 cents/gal. (US$571/t) in 2011, to 25 cents/gal. (US$185.50/t). Production is approximately 1 million bpd, and growth is running well ahead of demand. Ethane rejection is the term used to describe the burning of ethane as part of natural gas; approximately 250 000 bpd is currently being rejected, and the situation is getting worse; the amount of unneeded ethane is expected to increase to over 500 000 bpd by 2015. While petrochemical plant operators benefit in the short term, continued low prices discourage the development of commodity production and transportation infrastructure. The practice of fracking is also a growing concern. Environmentalists are concerned that frack additives (which reduce the viscosity of water) may befoul groundwater and surface bodies. Farmers and rural Latest News CADWorx ® 2015 Plant Professional UP TO 30% ENERGY PRICE VOLATILITY IS THE NEW NORMAL According to the latest World Energy Issues Monitor published by the World Energy Council, energy leaders see price volatility and the future of the climate framework as their top critical uncertainties. For further information go to www.energyglobal.com/downstream ANNUAL NGV SALES TO REACH 4 MILLION BY 2024 According to a new report by Navigant Research, sales of NGVs will grow from 2.3 million in 2014 to 3.9 million in 2024 as increasingly stringent fuel economy and tailpipe emissions standards in major automotive markets drive automakers to provide alternatives to tradition gasoline and diesel internal combustion engines. For further information go to www.energyglobal.com/downstream PRO US CRUDE EXPORTS FASTER MODELING & SMARTER DESIGN Intergraph CADWorx Plant Professional makes the creation of intelligent plant designs quick and easy. It has helped ﬁrms produce the high-quality deliverables their customers have come to rely on for over ﬁfteen years. ® Capabilities • AutoCAD -Based • Intelligent 3D Piping Design • Speciﬁcation-driven Design • On-the-ﬂy Collision Checking • Structural Steel • Equipment • Ducting/Cable Trays • ISOGEN Isometrics • P&ID Creation and Links • Links to Stress Analysis • Design Review ® Ryan Lance, ConocoPhillips CEO and Chairman has told policymakers that the US’ approaching surplus production of crude oil offers an opportunity for the expansion of global trade via exports. The US could sustain the job creation and economic growth powered by the US energy renaissance, while putting downward pressure on consumer fuel prices and improving global energy security at the same time. For further information go to www.energyglobal.com/downstream COSTLY CANADIAN LNG PROJECTS SUFFER SETBACKS Business Monitor International (BMI) has downgraded its Canadian natural gas production forecast due to increasingly uncompetitive LNG project economics amid lower international oil prices, both of which will negatively impact the outlook for gas production. Furthermore, high operating costs, limited midstream infrastructure, and uncertain Asian demand for Canadian LNG will continue to disincentivise investment in the sector. For further information go to www.energyglobal.com/downstream www.intergraph.com/go/cadworx 2014 Integraph Corporation. All rights reserved. Intergraph is part of Hexagon. Intergraph and the Intergraph logo are registered trademarks of IntergraphCorporation or its subsidiaries in the United States and in other countries. AutoCAD is a registered trademarkof Autodesk, Inc. © communitiesninnaridnregionsnarenworriednthatnthenhugen amountsnofnwaternusedninnfrackingnmaynaggravatendroughtn conditions.n Misinformationnandnmisperceptionsnaboutnfrackingn havenmanynofnthengeneralnpublicnalarmednandnwary.n Recently,ncitizensninnthenTexasncitynofnDentonnvotednton bannfurthernpermittingnofnhydraulicnfracturingnwithinn municipalnboundaries.nOpponentsnsuccessfullynarguedn thatnfrackingnpollutesnairnandndrinkingnwater,nandnthatnthen disposalnofnthenvastnamountsnofnwaternproducednbynthen drillingnprocessncouldncausenearthquakes.nDentonnsitsn atopnannimmensenresource;nthendevelopmentnofnthen Barnettnshalenpioneeredntheneconomicnproductionnofn shalengas.nIfnthentrendnbecomesnmorenwidespread,n unconventionalngasnsuppliesnmightnbenseriouslyncurtailed. Finally,nthenrecentn25%ndropninninternationalnoilnpricesn couldnhavenanknocknonneffectnonngas.nUnconventionaln reservoirsnrequirenconstantndrillingnjustntonmeetnhighnwelln declinenrates,nandndrillingnandnstimulationncostsncanneasilyn exceednUS$10nmillion/well.nExplorersnhavenbeennrelyingn onnliquidsnrichnshalesntonhelpngeneratencashnflowninnthen facenofnweakngasnprices;nmanynplaysnbecomenuneconomicn whennthenpricenofnoilndipsnbelownUS$80/bbl.nAlthoughn operatorsnarenstillnweighingnwhethernthenprecipitousn plungenisnanshortnornlongerntermnphenomenon,ncontinuingn lownpricesnwillnhavenanninevitablenimpactnonncapexn budgets. Solutions Bynitsnverynnature,nthenoilnandngasnsectornrequiresnconstantn evolution,ninnovationnandnreinvention.nMidstreamn companies,nforninstance,narenbuildingnnewnlinesnandn repurposingnexistingnassetsntonmeetninfrastructuren demands.nAccordingntonthenInterstatenNaturalnGasn AssociationnofnAmerican(INGAA),nNorthnAmericanwillnneedn tonspendnalmostnUS$641nbillionnovernthennextntwondecadesn (approximatelynUS$30nbillion/y),ntonhandlenallnthen midstreamngas,ncrudenoilnandnnaturalngasnliquidsn(NGLs)n comingnonstream.n DTEnEnergy,nEnbridgenandnSpectranarenbuildingnthen NEXUSnprojectsnthatnwouldnmovenupnton1nbillionnft3/dnofn UticanshalengasntonthenUSnMidwest.nEQTnandnNextEranUSn Gasnhavenformednanjointnventuren(JV)ntonbuildnan330nmilen MountainnValleynline.nThensystemnwillnmoven2nbillionnft3/dn ofnMarcellusnandnUticangasnfromnWestnVirginiantonmidnandn southneasternnSeaboardnmarkets.nItnisnexpectedntonentern servicenbynlaten2018.nDominionnResourcesnandnDukenEnergyn arenpromotingnthenAtlanticnCoastnPipelinenthatnwouldnrunn fromnWestnVirginiantonSouthnCarolina.nThen 550nmilenpipelinenwouldncostnupntonUS$5nbillion,nandn moven1.5nbillionnft3/d.nThenpartnersnexpectnapprovalnbyn midn2016,nandntonstartnoperatingninn2018.n Midstreamncompaniesnarenalsonworkingnonnendingnthen ethanenglut.nEuropeannpetrochemicalnfirmsnhavenexpressedn interestninnUSnsurplusnethanensupplies.nEnterprisenProductsn Partnersn(EPP)nhasnannouncednplansntonan240n000nbpdn refrigeratednethanenexportnfacilityninnitsnMontnBelvieu,n Texas,ncomplex,nandnexpectsnthenplantntonbenonlinenbyn laten2016. February 2015 16 HYDROCARBON ENGINEERING Operatorsncouldnalsonusenethaneninntheirngasnstrippingn andntransportationnfacilities.nWhilenthenhighnthermaln componentnofnpurenethanenrestrictsnfuelnuses,nresearchersn areninvestigatingnattachingnheatnexchangersntonlown pressurenrationturbinesntoncreatenannefficientnpowern generatornwithnsurplusnheatncapabilitiesnusefulnforngasn processing. Drillersnarenlookingnatnnewnwaysntonsavenmoneynandn time,nandnincreasenproductivity.nSeismicnandnpetrophysicaln researchnandndevelopmentnhasnidentifiednthenbestn‘sweetn spots’,ntonimprovenproduction.nPadndrilling,ninnwhichnasn manynasn20nwellsnarenspudnfromnonensite,nhasnloweredn non-productivenmovingntimenonnrigs.nPrecisionnbitn guidancensystemsnplacenwellsnwithinnmetresnofnthenbestn production.nStimulationntechnologiesnhavenbeennrefinedn innorderntonreducenfrackingntimenandnincreasen effectiveness.n EvennthoughnexportsntonMexiconandnCanada,nLNGnandn othernusesnwillnsoaknupnsignificantnsupplies,nnewngasn sourcesnarenexpectedntonkeepnsufficientlynaheadnofn continentalndemand.nThenEIAnreportednthenHenrynHubn naturalngasnspotnpricenaveragednUS$4.57/1000nft3ninn2014n andnexpectsnannevennmorenmoderatenUS$3.94ninn2015,nwithn longerntermnoutlookninnthensamenrange. Thenoilnandngasnindustrynisnmovingntonaddressnsundryn issuesnonnthenenvironmentalnfront.nAlternate,nbenignnfrackn additivesnarenbeingndevised.nNewnstimulationntechnologiesn andnprocessesnarenreducingnthenamountnofnwaternusedn (and,ninnsomencases,neliminatingnit).nIndustryngroupsnaren engagingnthenpublicninndiscussionsntonallaynunfoundedn concerns.nScientistsnhavenbeennworkingnonnwaysntontracen fracknfluidsntonascertainnifnleaksnarenoccurring;nanteamnfromn DukenUniversitynrecentlynannouncednthatntheynhaven identifiednuniquenboronnandnlithiumnisotopesnthatnreturnn fromnthenfrackednreservoirntonthensurfacenwithnproducedn water.nThenpresencenofnthesenisotopesninnadjacentn groundwaternisnannindicatornthatncontaminationnhasn occurred;nconversely,ntheirnabsencenisnstrongnproofnthatn frackntechnologiesnarensafe. Conclusion Whilenmanynofnthenoriginalnshalenplaysn(includingnthen BarnettnshaleninnTexas),nhavenreachednmaturitynandnareninn slowndecline,nanplethoranofnnewnplaysnremain.nExplorersn havenbeenntargetingnoilnrichnshalesnsuchnasnthenEaglenFordn andnBakken,ncreatingnsignificantnincreasesninnLowern48n liquidsnproductionntonthenpointnwherenthen40nyearnoldnbann onncrudenexportsnisnfacingnrepeal.nButnthenfocusnonnliquidsn alsonhasnangasnside;nmuchnofnthennewncrudenproductionn releasesnlargenquantitiesnofnassociatednmethanen(accordingn tonthenEIA,noilnwellsninnthenUSnproducen15nbillionnft3/d).n Clearly,nmanynfactorsnremainnoutsidenofnthencontrolnofn thenUSnoilnandngasnsector,nincludingnthenpricenofn hydrocarbons.nBut,nasnhasnbeennclearlynproven,nadvancesn inntechnologynhavenallowednfornvastnshalenreservesntonben economicallyntapped.nAsnlongnasnthentrendntowardn increasingnthenefficiencynofndrillingnandnproductionn persists,nnaturalngasninnthenUSnwillncontinuenton prosper.n Flare Residue Compression Area Dehy/Cryo Area Slug Catcher Area Amine Area Stabilizer Area Hot Oil Unit A new standard for standard plants. Linde Process Plants, Inc. has developed a new standardized approach to natural gas processing. From Eagle Ford to Marcellus, our standard plant is specifically designed for shale gas. A single plant, operating from 80 MM to 200 MMSCFD, provides a flexible solution that you can adjust to your business needs and still maintain full recovery. EVERYTHING you need delivered in less than 12 months. Linde Process Plants, Inc. 6100 South Yale Avenue, Suite 1200 Tulsa, Oklahoma 74136, USA Phone +1.918.477-1200, [email protected] www.lppusa.com STANDARD-PLUS™ product line includes: • • • • • • Inlet receiving and stabilization Amine treating with acid gas flare Dehydration and Cryogenic plant Residue gas compression NGL product pumps Balance of plant utilities FEBRUARY ISSUE You will need to be a subscriber to read the full edition. Please log in to www.energyglobal.com or alternatively click here to subscribe. For more information about the comprehensive Hydrocarbon Engineering subscription package, please contact us: www.energyglobal.com E: [email protected] T: +44 (0)1252 718999