Vice President - Project Development
10:15 - 10:45
Wednesday, 18 September 2019
T3.3 RESERVE: ETHANE TRANSPORTATION WITH LNG – FEASIBILITY AND ECONOMICS
In times of high oil prices, ethane from natural gas has traditionally been a cost competitive alternative to naphtha as the precursor for petrochemicals. Most of the ethane based petrochemical projects in the world are located close to the source of rich natural gas.
Demand for ethane for ethylene production is growing worldwide while the USA and other LNG producing regions have surplus ethane available. On the other hand there is a severe short fall of ethane in many countries producing petrochemicals. This paper describes a significant market opportunity for transporting ethane co-mingled with LNG and Ethane recovery at the LNG regasification terminal.
The paper discusses the economics of transporting Ethane with LNG as well as technical challenges in recovery of ethane from LNG. Several different configurations of the regasification terminal and options to minimize changes and cost including TechnipFMC’s Dual Column process (US Patent 7,530,236 B2) are presented.
A comparison is also illustrated with an alternate route of pure ethane liquefaction & transportation which provides marketing flexibility but requires significantly higher investment cost for dedicated terminals and shipping.