Liquefied natural gas (LNG)
LNG is natural gas that has been superchilled to -161°C. At this temperature, gas converts to liquid form and becomes easier to transport in tankers and easier to store, as LNG takes up about 1/600th of the volume occupied by the methane in its gaseous form.
Clean energy to Asia
Australia’s major LNG markets are Japan, China and South Korea, while India is an important emerging market.
As a substitute for coal in power generation, LNG offers significant global environmental benefits. For every tonne of greenhouse gas emissions generated by the production, liquefication, and transport of Australian LNG, up to nine tonnes of emissions are avoided in customer countries when this LNG is substituted for coal in electricity generation.
2020 vision
Australia is currently the world’s fifth largest LNG exporter and the Australian petroleum industry is aiming to make this country the world’s first or second largest LNG exporter by 2020. The industry is targeting production of at least 60 million tonnes per annum (mtpa) by 2020, up from 2009 production of 16.71mtpa.
|
Australian LNG |
||
| 2000 | 2009 | 2020 |
|
6.90 million |
16.71 million |
60 million |
Projects
Australia has three producing LNG developments and several other confirmed LNG projects. More than a dozen such projects are either under construction or at various stages of planning.
The country's first LNG project – the North West Shelf Venture (NWSV) – began shipping LNG in 1989. The project has since grown to include five production units (or trains) and it now produces up to 16.3mtpa of LNG. The country’s second LNG development – Darwin LNG – began production in 2006. This one-train project produces up to 3.5mtpa. Australia's third LNG project - Pluto - started production in April 2012. It has one 4.3mtpa production train but at least one additional train is being planned.
Seven large Australian LNG schemes are currently under construction. Four draw from gas fields in northern Western Australia (Gorgon, Prelude, Wheatstone and Ichthys) and three are in Queensland (Queensland Curtis LNG, Gladstone LNG and Australia Pacific LNG).
Gorgon will have three trains producing 15mpta from 2014. Wheatstone will produce an initial 8.9mpta from 2016. Prelude will produce 3.5mtpa, starting from 2016 or 2017. Ichthys will pipe WA gas to a liquefaction plant near Darwin. It will produce 8.4mtpa of LNG and is expected to start production in late 2016.
The two-train project at Queensland Curtis will produce around 8.4mtpa of LNG from 2014. Gladstone LNG will have two trains producing up to 7.8mtpa from 2015. Australia Pacific LNG will produce up to 4.5mtpa from 2015.
In total, Australia currently has about $200 billion worth of LNG projects on the drawing board.
Innovations: CSG-LNG and floating LNG
Australia is a world leader in LNG innovation. The world’s first coal seam gas-to-LNG projects are being developed in Queensland.
Australia also seems likely to become the first country in the world to host a floating LNG project. Shell Development Australia will use a specially designed ship - the largest floating structure ever built - with LNG production facilities to develop its Prelude gas field off the north coast of Western Australia. This project is expected to begin producting 3.5mtpa from 2016 or 2017.
LNG for road transport and gas storage
A small proportion of LNG is used as a diesel replacement fuel for heavy vehicles. Trucks that run on LNG require a special cryogenic fuel tank to keep the fuel chilled. LNG is highly compatible with diesel engines and is a clean-burning fuel. Its use in road transport is growing but because large fuel tanks are needed, LNG is not suitable for smaller vehicles and it is expected to remain a niche fuel. LNG for road transport is usually produced in small plants located near regional transport hubs.
LNG can also be used as a way of storing gas for use in periods of high demand or interrupted supply.
Liquefied natural gas is natural gas (predominantly methane, usually with some ethane) that has been superchilled to -161°C. This converts it into liquid form for ease of transport and storage. LNG takes up about 1/600th of the volume occupied by methane in its gaseous form.
LNG is usually transported via large, specialised LNG shipping tankers, but it can also be transported in cryogenic road tankers for use in remote-area power generation.
After shipping, LNG is regasified (warmed up until it returns to gaseous form) so it can be pumped into pipelines and used in the same ways as domestic gas (for power generation, heating, cooking and industrial uses).
Markets
Australia’s major LNG markets are Japan, China and South Korea. India is an important emerging market. In addition to long-term LNG contracts, one-off “spot cargoes” are sold when available. Australian projects have sold LNG spot cargoes to customers in India, Spain, Turkey and the United States.
Clean energy
As a substitute for coal in power generation, LNG offers significant global environmental benefits. For every tonne of greenhouse gas emissions generated by LNG production in Australia, between 4.5 and 9 tonnes or emissions are avoided in customer countries when this LNG is substituted for coal in electricity generation.
2020 vision
Australia is currently the world’s fifth largest LNG exporter and the Australian petroleum industry is aiming to make this country the world’s second largest LNG exporter by 2020. The industry is targeting production of at least 60 million tonnes per annum (mtpa) by 2020, up from 2009 production of 16.71mtpa.
|
2000 LNG production |
2005 LNG production |
2009 LNG production |
2020 LNG target |
|
6.90 million tonnes |
10.53 million tonnes |
16.71 million tonnes |
60 million tonnes |
Projects
Australia’s first LNG project – the North West Shelf Venture (NWSV) – began shipping LNG in 1989. The NWSV has since grown to include five production units (or trains) and it now produces up to 16.3mtpa of LNG./p>
The country’s second LNG development – Darwin LNG – began production in 2006. This one-train project produces up to 3.5mtpa.
Two more large LNG schemes are currently being built. Both are in northern Western Australia.
Pluto LNG is expected to come online in mid 2011. It will initially have one 4.3mtpa production train, but there are plans to add further trains.
The other project now under construction – Gorgon LNG – will have three large trains producing a total of 15mpta.
In addition, several other LNG projects are being planned for WA and the Northern Territory. Queensland will also soon become an LNG province – two projects have been approved and have received positive final investment decisions, while others are being planned.
Innovations in LNG
Australia is a world leader in LNG innovation. The world’s first coal seam gas-to-LNG projects are being developed in Queensland. Two of these schemes have already received all necessary federal and state approvals and the project proponents have made positive final investment decisions. Queensland Curtis LNG will have two trains producing a total of 7.4mtpa. Gladstone LNG will have two trains; it will initially produce 7.2mtpa, with a maximum potential production of 10mtpa.
Two other large CSG-LNG projects are also being planned for Queensland, although these have not yet finished working their way through the approvals processes.
Australia also seems likely to become the first country in the world to host a floating LNG project. Shell Development Australia is planning to use a specially designed ship with LNG production facilities to develop its Prelude gas field off the north coast of Western Australia.
LNG and road transport
A small proportion of LNG is used as a diesel replacement fuel for heavy vehicles. Trucks that run on LNG require a special cryogenic fuel tank to keep the fuel chilled. LNG is highly compatible with diesel engines and is a clean-burning fuel. Its use in road transport is growing but because large fuel tanks are needed, LNG is not suitable for smaller vehicles and it is expected to remain a niche fuel. LNG for road transport is usually produced in small plants located near regional transport hubs.
LNG video – From Plant to Plant (courtesy Woodside Energy)
Industry
