Flexible Domestic Natural Gas
Flexible Domestic Natural Gas:
POWER, PROCESS OR PROPULSION
William E. Wells
Eagle LNG Partners
POWER-GEN International 2016
Session Title: PGI 7C – Unconventional Natural Gas Supply for Power
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Flexible Domestic Natural Gas
“Throughout my career in natural gas energy solutions, there has been an underlying
premise; that responsible and sustainable development of North American natural gas
reserves would become a “Bridge Fuel” to a low carbon economy. Couple this in power
generation with the ability to complement renewables and responsible water use yields
a flexible winning ticket.”
flex·i·bil·i·tyˌ (fleksəˈbilədē)
Noun
1. The quality of bending easily without breaking.
"Engineers gained improved flexibility in their designs"
Synonyms: pliability, suppleness, pliancy, plasticity;

The ability to be easily modified.
"Our client enjoyed the flexibility of the project schedule"

Willingness to change or compromise.
"The U. S. Coast Guard has shown flexibility in applying its regulatory policy"
PLANT DESIGN FLEXIBILITY
So there’s this small matter of designing your next Power Generation project.
Where is this plant going to reside? Will it be a virgin “Greenfield” location convenient to
an interstate pipeline with abundant gas capacity? Will it be an adaptive re-use of a
“Brownfield” location or a repowering of a coal or oil plant? Both will require new and
unique approaches; such as sound attenuation, (low frequency vibration and noise
levels), utility grid interconnections, dilemma of aging infrastructure, grid and system
resiliency, remediation or containment, etc. Will there be back-up fuel requirements for
peak periods? Many questions lay ahead.
Does the design call for new concepts or technology such as decentralized energy,
distributed generation, CHP, Aero-derivative gas turbines, super turbines? Does the
stalwart power generation market now require flex generation for backstopping
renewables? How will permitting go, is the plant welcomed, are you competitive and
what is your green/carbon footprint?
Then there are the power generation projects that don’t fit the classic mold. The use of
industrial waste gases or renewable natural gas for power generation. A truck mounted
mobile design or one that has to be transported by barge or rail, to be assembled
elsewhere. Uses could be cold ironing of ports, remote locations that need power to
sustain agriculture, developing countries, fledgling economies or energy intensive
mining. Could your design be easily deployed such as in cases of natural disasters?
Does the design exist or will you be honing your “Engineering Skill & Prowess” to deliver
value based solutions for your client?
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Flexible Domestic Natural Gas
Ultimately plants get built to meet all the market needs above and facility
regulations go on in perpetuity.
FUEL FLEXIBILITY
Flexibility in a fuel is a key attribute and the growing integration of domestic clean
natural gas in the power generation sector is outstripping traditional petroleum and coal
as the main stable supply. Our country is awash in natural gas reserves, even when
world petroleum prices threaten to silence every profitable drilling rig still in-service. No
longer do natural gas market prices keep in locked step with world petroleum markets.
We are truly decoupled and it makes sense to maximize this domestic fuel for the
greater good. It really is a game changer and should be legislated and leveraged for
the whole economy’s well-being and economic growth. When was the last time North
America was on the cusp of a home-grown, (Ethanol and bio-fuels aside) energy
independence renaissance? Not since coking coal which drove the growth of the North
American steel industry and the term skyscraper was born!
The current marine industry is a great example of fuel flexibility with the ability to flip
between fuels based on a variety of reasons; economics, regulatory, environmental…
There are now many LNG powered vessels in the world’s oceans, rivers and lakes and
many LNG ready vessels afloat that will receive LNG fuel tanks in the near future.
ENERGY DENSITY AND VOLUME FLEXIBILITY
It is important to constantly learn about the “Fuel Side” of the markets and the valuable
linkage with power generation, process or propulsion.
Ch-4 Delivery and Supply Options
Gas Option A: The traditional old school approach might lead to the investigation of
the feasibility and cost to construct a pipeline which has many technology hurdles as
well as a large environmental impact. Sheer distance and overcoming the constantly
changing forces associated with “Mother Nature” make building traditional pipelines
above or below the ground to reach isolated areas very challenging. Also societal
environmental awareness, activism and many other “on the record” opposition groups.
Gas Option B: Liquid Natural Gas/LNG closely mimics the traditional fuel oil supply
channels and logistics, yet is a fuel of many virtues. LNG is natural gas (predominantly
methane, CH4) that has been converted to cryogenic liquid, cooling it to approximately
−162 °C (−260 °F); maximum transport pressure is set at around 25 kPa (4 psi). This
transformation allows for ease of storage or transport. It takes up about 1/600th the
volume of natural gas in the gaseous state. It is odorless, colorless, non-toxic and noncorrosive and an economic alternative to petroleum.
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Flexible Domestic Natural Gas
LNG liquefaction or LNG storage and vaporization, (a virtual pipeline) is cost effective.
US Domestic LNG enjoys stable pricing and transporting it to the end use application is
relatively easy. Its superior energy density allows for on-site storage for extended fuel
needs, without the need for local or regional pipeline expansion. LNG plant construction
consists of pre-engineered modular components which are field assembled and LNG
plants are scalable to accommodate future expansion and flexibility of production
volumes.
The island of Japan and their economic machine is perhaps one of the greatest
examples of the staggering power of LNG imports and the positive effect that a
stable energy source can have on production of goods and services.
Gas Option C: Compressed Natural Gas/CNG is natural gas stored at pressure,
generally 3600psi which is the North American automotive standard. Some newer
upstart companies postulated that the growing number of CNG vehicle fueling stations
might be leveraged for the filling of CNG tube trailers and then could be trucked (a
virtual pipeline) and connected to a customer in need of natural gas. Very early in the
development of CNG, natural gas distribution companies/LDCs began using CNG from
vehicles and tube trailers for system support measures. LDCs found that CNG could
support base load supply and generated labor savings associated with natural gas
mains and service undergoing maintenance. In New England, there are several CNG
supply companies that have tube trailers of many types and sizes that deliver “just in
time” supply to off the main commercial and industrial customers. In the Balkan Play,
flare gas is captured and compressed for use as fuel for drilling operations and also
vehicle fuel. This “flare gas” would normally be inefficiently combusted, but rather now
has bottom line ramifications for exploration companies. There are also positive
environmental gains associated with flare gas capture.
Gas Option D: Floating Storage and Regasification Units/FSRU is LNG stored in large
LNG barges or carrier ships and parked far offshore a country or region that has a
shortage of gas supply or distribution capacity. The LNG molecules never gets to go
ashore but rather is converted back to its natural gaseous state and piped from a
mooring buoy to a city gate connection of an existing distribution system. This is a
growing model for world scale LNG exports and a number of companies are competing
in this space, often investing in newer more technologically advanced FSRU carrier
ships. These LNG mother ships sit just over the curvature of the earth’s horizon so they
can sometimes be considered “out of sight, out of mind”. Some emerging economies
are turning to FSRU as being able to provide sustainable natural gas supply. There is
also a lot of market activity with Floating Liquid Natural Gas/FLNG which incorporates
LNG liquefaction trains for production from offshore natural gas fields.
Wherever a pipeline traverses, you have potential for end use natural gas
applications and natural gas liquefaction.
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Flexible Domestic Natural Gas
Renewables will and have established a foothold that pervades our energy related
economic activities and natural gas is considered the “go to fuel” that
complements wind, solar, wave/tidal and new emerging technologies. Natural
gas is clean, fast and dependable for dovetailing the intermittent nature of
renewables.
DATA and SYSTEM FLEXIBILITY
The growth of the “Industrial Internet, aka Internet of Things”, machine to machine
communications/M2M and evolving Energy Management Software when coupled with
natural gas turbine data collection will yield system efficiency gains and smart network
optimization. The increasingly “Smarter Grid” allows regional ISO’s to make split
second decisions for better dispatch optimization and improved gas/power system
harmonization. The resulting increases in overall generation asset efficiencies will
ultimately yield returns for the utility ratepayers.
Natural gas distribution and delivery, pipeline or liquid is uniquely suited to play its role
in this latest Tech Revolution.
The simple nature of the un-adulterated Ch-4 molecule allows for the accurate mass
flow measurement and careful calibration of the combustion process, from inlet fuel
supply to stack emissions. Even more complicated and complex inlet gas supply such
as renewable/RNG and landfill/LFG can be quality calibrated by different means and
processes resulting in cleaner combustion. Either way you look at natural gas fuel,
there are dynamic solutions for controlling exhaust/stack emissions, aka combustion byproducts.
Hopefully the Power Engineers that are with us today can see the parallels in the
following automotive example and how it relates for bigger burn technology. Now is the
time to anticipate where do we go from here?
The simplest example of the M2M revolution can be exemplified by the evolution
of the modern automobile/truck. When I entered the workforce most cars and
trucks had mechanical carburation consisting of butterfly valves, needle valves,
linkages etc. Fuel dumped into the engine and oftentimes a fair amount dumped
out the tail pipe. As regulation and responsible environmental oversight became
a household term there was the addition of a very simple computer/ECM and a
customizable computer chip. These Electronic Control Modules/ECMs were
located behind the vehicles glove compartment, a relatively safe area considering
the replacement cost of the ECM. Soon the throttle body carburation could no
longer meet the detailed information needs of the ECM and the industry moved to
calibrated fuel injection and positive feedback fuel control and emissions
devices.
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Flexible Domestic Natural Gas
Today we have ECMs that out-perform some personal computers and the ECMs
are located in crash zones on the vehicles since they are very inexpensive in
today’s terms. There isn’t a single day the media doesn’t have coverage on
autonomous driving vehicles and self-parking vehicles are now an inexpensive
option.
POWER, PROCESS, PROPULSION FLEXIBILITY
How varied are the uses for natural gas, just consider the following;
Power generation: Combined Cycle Power Plants, Decentralized energy, Distributed
generation, CHP, Commercial, Industrial, Micro, Grid dilemmas, (Reference #1; Toren
Towers Residential Cogen, Brooklyn, NYC), Aero-derivative gas turbines, (low mass
and high efficiency), Super turbines, (Reference #2; GE’s Harriet weighs 800,000
pounds), Cold-ironing, Energy Resiliency, Complementing Renewables…
Trigeneration: The production from a single power source of both electricity and useful
heat while simultaneously providing cooling, as for refrigeration.
Process and Manufacturing: Commercial, Industrial, (fertilizers, plastics, etc)
Chemical, (Petrochemical alliances, Chlor-Alkali and Methanol plants), Pharma, Cooling
and Freezing, De-salinization, Wastewater treatment, HVAC- heating and cooling,
District-heating and cooling, Industrial,
Propulsion: Marine, Rail, Heavy-duty transport, Airplane Fuel, (Reference #3; Boeing's
"SUGAR Freeze, Standing for Subsonic Ultra Green Aircraft Research” LNG-fueled
aircraft concept. Boeing Research & Technology), (Reference #4; Russian, Tu-155 first
flew on 15 April 1988), Rocket Fuel, (Reference #5; United Launch Alliance. ULA & Blue
Origin, Bezos),
Technology/Other:
Convenience: Natural gas adsorbent air conditioning, Natural gas refrigerators,
(1950’s LNG Milk Truck), Natural gas incinerating toilets, Natural gas road and driveway
defroster, Gas lights, (exterior and interior), Light-duty and medium duty CNG cars and
trucks,
Synthetic Fuels: The country of Qatar, the first to benefit from commercial GTL Jet
Fuel made from natural gas.
Super Tech: LNG's subfreezing properties could harmonize well when paired with
another future technology, so-called superconductors, a technology that would reduce
electricity losses in an airplane's internal circuitry. The improvement in efficiency could
make electric and hybrid-electric planes competitive with their conventionally fueled
counterparts.
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Flexible Domestic Natural Gas
Superconducting systems would need to be kept at extremely low temperatures -- about
minus 280 F -- to work efficiently.
In closing:
What would Edison do?
References:
1. 2016 Energy Concepts, The Engineers are greening New York, retrieved from
http://nrg-concepts.com/toren-condominium-cogeneration/
2. Sep 29, 2014 by Tomas Kellner, retrieved from GE Reports, “Everything is
Bigger in Texas, But These New Turbines Up The Ante”
http://www.gereports.com/post/98472615825/everything-is-bigger-in-texas-butthese-new-gas/
3. Boeing, 2014 Environmental Report, Build a Better Planet, retrieved from
http://www.boeing.com/aboutus/environment/environment_report_14/2.3_future_f
light.html
4. Dmitriy Komissarov, Tupolev Tu-154, the USSR's Medium-Range Jet Airliner,
(Hinckley, UK, 2007), 48–50. ISBN 1-85780-241-1, retrieved from
http://broom02.revolvy.com/main/index.php?s=Tupolev%20Tu-155
5. Centennial, Colo. and Kent, Wash. – Sept. 17, 2014, United Launch Alliance and
Blue Origin Announce Partnership to Develop New American Rocket Engine
BE-4 Fact Sheet, retrieved from
http://www.ulalaunch.com/ula-and-blue-origin-announce-partnership.aspx
William E. Wells, Director of HHP & Utility Markets for Eagle LNG Partners. Eagle
LNG Partners is wholly owned by Ferus, Natural Gas Fuels, a portfolio company of the
Energy Minerals Group (EMG). EMG is a private investment firm with $16.8 billion
under management and targets equity investments of $150 million to $1 billion in the
energy and minerals sectors focused on hard assets that are integral to existing and
growing markets. Eagle LNG Partners is a member of the Ferus group of companies.
We bring specific regional expertise to liquefied natural gas (”LNG”) projects that supply
clean burning, competitively priced fuel for the marine, transport trucking, remote power,
rail industries, and small-scale export markets.
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Flexible Domestic Natural Gas
In addition to our proposed FERC-jurisdictional LNG export facility in Jacksonville, a
second Maxville plant is being constructed to support fueling Crowley’s new LNGpowered ships. Eagle has requested authorisation from the DOE to export LNG on its
own behalf and as an agent for other organizations. In late July DOE issued an order
granting Eagle LNG Partners Jacksonville LLC long-term, multi-contract authorisation to
export LNG to countries that hold a free trade agreement (FTA) with the US. Eagle LNG
Partners is pleased to announce it has achieved a major milestone by submitting draft
Resource Report 13 for the Jacksonville Project to the Federal Energy Regulatory
Commission (FERC) on August 29, 2016. These are exciting times for both Eagle and
the small-scale LNG industry.
With more than 28 years of experience in the natural gas LDC industry and over 20
years in the role as an NGV consultant, Bill led a major LDC’s efforts to develop and
implement a NGV market and business plan including construction of a comprehensive
public access CNG station infrastructure. In addition to holding a variety of other natural
gas industry roles and supporting a number of large CNG customer fleets, Bill has
experience in the areas of regulatory tariffs, municipal land use, industry legislation,
environmental permitting, utility rate design and other project development disciplines.
Bill holds a BA Business Administration from Gettysburg College.
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