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    CHAPTER 6 GAS UTILIZATION

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    GAS RESERVES STATUS

    Malaysia has the 16th largest gas reserves and the 30th  largest crude oil reserves in the

    world as at end 2003. Also Malaysia’s gas reserves stood at 84.9 trillion cubic feet (tcf)

    and this translates to about 66.8 years of reserves per production ratio.

    Source: www.gasmalaysia.com

    Natural Gas reserves under the Malaysia-Thailand Joint Development Area (JDA) are

    estimated to be around ten trillion cubic feet. The gas wills tie-in with the Peninsular Gas

    Utilisation (PGU) system at Changlun, Kedah. Initial volume is 290 million standard cubic

    feet per day (mmscfd) rising to 550 mmscfd by year 2005 / 2006.

    Apart from the Malaysia-Thailand JDA, a new source of gas supply to Peninsular

    Malaysia will be from the West Natuna Field in Indonesia. PETRONAS signed an

    agreement on 28 March 2001 with PERTAMINA (The Indonesian state oil and gas

    company), for the import of 1.5 trillion scf of gas over a period of 20 years.

    Another agreement involving the supply of 300 mmscfd to Malaysia for 20 years is

    expected to be concluded by the end of 2002. The delivery of gas from south Sumatra to

    Malaysia is scheduled for early 2005.

    Figure 6-1: Malaysian Natural Gas Reserves

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    Fig. 6-2 and Fig. 6-3 from BP Review of World Gas 2003 shows Asian and world gas

    reserved status as at end 2003.

    Figure 6-2: Asian proved gas reserves status

    ASEAN TOTAL: ~224 TSCF

    BRUNEI, 5%

    MYANMAR, 6%

    THAILAND, 7% VIETNAM, 4%

    MALAYSIA, 38%INDONESIA, 40%

     

    Figure 6-3: World Proved Gas Reserves Status

    WORLD TOTAL: ~ 6205 TSCF

    NORTH AMERICA

    4%AFRICA

    8%

    ASIA PACIFIC

    8% SOUTH AMERICA

    4%

    MIDDLE EAST

    41% EUROPE &

    EURASIA

    35%

     

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    MALAYSIA ENERGY DEMAND

    Energy demand is set to outpace the growth of GDP and natural gas is poised to face a

    higher growth rate. The contribution of natural gas as a main source of primary

    commercial energy supply is expected to increase from 29.9 percent in year 2000 to37.1 percent in year 2005.

    Natural gas will continue to remain the fuel of choice for power generation as compared

    to oil, coal and hydro, accounting for 61 percent of the fuel generation mix.

    Source: www.gasmalaysia.com

    By year 2005, 1,687 mmscfd of gas is expected to be used for electricity generation.

    COMPONENT OF NATURAL GAS

    The organic origin of Natural Gas explains why it is made of hydrocarbons (compounds

    of hydrogen and carbon). The principle ingredient of Natural Gas is the hydrocarbon

    compound called methane. In many Natural Gas deposits, methane makes up 80 to 90

    percent of the gas.

    Figure 6-4: Fuel for Power Generation

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    Source: www.gasmalaysia.com

    Natural Gas may contain other small hydrocarbon molecules such as ethane, propane,

    butane, pentane, and hexane. Besides these hydrocarbons, it may also comprise such

    inorganic compounds as nitrogen, helium, carbon dioxide and hydrogen sulphide.

    Constituent of Natural Gas

    Figure 6-5: Natural Gas Composition

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    Gas Malaysia Sdn. Bhd.

    Gas Malaysia  is joint venture company established by MMC-Shapadu Holdings (55%),

    Tokyo Gas-Mitsui & Co. Holdings (25%) and PETRONAS (20%).

    Gas Malaysia was incorporated in May 1992 to promote, construct and operate Natural

    Gas Distribution System in Peninsular Malaysia. Their mission is to provide the cleanest,

    safest, cost effective and reliable energy solutions to the nation.

    Gas Malaysia supplies Natural Gas to a wide range of industries namely chemical, glass,

    basic metal, rubber, non metallic material and others. As at June 2004, it has a network

    of over 900 kilometers in pipelines, which leads to over 32 communities and enables

    supply to key industrial areas. Gas Malaysia pipes gas to industrial, commercial and

    residential sectors and derives about 98% of its revenue from the industrial sector

    comprising mainly manufacturing plants.

    With the announcement of the new gas tariff made in March 2003, it has positioned

    Natural Gas as the most affordable and attractive energy solution. The fixed gas price

    system has eliminated the volatility of energy pricing. Natural Gas is currently in between

    38% to 63% cheaper than other alternative fuel. With the potential savings in sight, Gas

    Malaysia is expecting a sharp increase in the demand for Natural Gas. 

    GAS UTILIZATION

    Factors which influence the pattern of gas utilization as follow;

    -  Sources of gas (locally produced vs. import)

    -  Infrastructure (existing pipeline vs. newly built)

    -  Weather

    -  Energy Intensive vs. Non energy intensive industries

    -  Population density

    -  Alternative fuel (price)

    -  Government policy

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    Pattern of Gas Utilization

    Table 6-1: Breakdown of pattern of gas utilization for various countries

    M’SIA (%) EUROPE (%) USA (%) JAPAN (%)

    Petrochemical 9 6 4 2

    Power generation 79 13 14 67

    Industrial/Commercial 10 27 29 7

    Domestic 1 48 40 22

    Others 1 6 13 2

    NATURAL GAS FOR POWER GENERATION

    Sources of primary energy for electricity generation

    a) Hydropower (water)

    b) Nuclear power (uranium, thorium converted to plutonium)

    c) Solar power (sun)

    d) Fossil fuels (coal, fuel oil, NG)

    e) Renewable (wind, tidal waves, geothermal, wood agro-waste, municipal waste)

    Figure 6-6: Electricity Generation by Fuel 1970-2020 (106 kWh)

    Source: EIA Annual Energy Outlook 2002 with Projections to 2020 

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    Capital cost of power plants

    1. Hydropower most expensive

    2. Nuclear power

    3. Steam turbine (oil, coal)

    4. Combined Cycle Power Plant (gas)

    5. Gas turbine (gas) least expensive

    Typical Power Plant Efficiency

    a) Combined Cycle 40-55%

    b) Diesel Engine 40-45%

    c) Steam Turbine 26-42%

    d) Nuclear Plant 30-35%

    e) Gas Turbine 25-30%

    Advantages

    -  Reliant supply – large and growing gas reserve

    -  Lower green house emission – environmental-friendly

    -  Site is clean and compact

    -  NOx emission control technology available

    -  Negligible sulfur and ash emission

    -  Development of high efficiency and low cost CCPP

    -  CCPP can be built in much more shorter time than other technologies

    Disadvantages 

    -  Possible leakage problem from pipeline

    -  Not a sustainable fuel

    -  Extraction of natural gas and the construction of natural gas power plants can

    destroy natural habitat for animals and plants.

    -  Possible land resource impacts include erosion, loss of soil productivity, and

    landslides.

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    Table 6-3: Fuel% for power generation in Malaysia

    FUEL/YEAR 1980 1984 1986 1988 1993 1998 2000

    Hydropower 14 25 25 28 20 8 12

    Oil 85 73 58 49 25 18 13

    Natural gas 1 2 17 21 45 67 70

    Coal 0 0 0 2 10 7 5

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    Electricity Generation 

    Power plants use several methods in converting natural gas to electricity. One process is

    to burn up the gas in a boiler to produce steam, which is then used by a steam turbine to

    generate electricity. A more common approach is to burn the gas in a combustionturbine to generate electricity.

    Another technology that attracts many power plants company is to burn the natural gas

    in a combustion turbine and use the hot combustion turbine exhaust to make steam to

    drive a steam turbine. This technology is called "combined cycle" and said that it can

    achieves a higher efficiency by using the same fuel source twice. Combined-cycle plants

    offer extremely high efficiency, clean operation, low capital costs and shorter

    construction lead times.

    Figure 6-7 shows the increasing thermal efficiency from the use of thermal brown coal to

    cogeneration and an inverse relationship to carbon dioxide emissions.

    Figure 6-7: Thermal efficiency of several methods in electricity generation

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    Environmental benefit of natural gas 

    Coal contains more carbon and less hydrogen than other fossil fuels such as oil and

    natural gas, and as such it gives off more CO2 per unit of electricity produced than any

    other fuel. As shown in Table 6-8 coal combustion produce the highest CO2 among otherelectricity generation technology. At the present time, coal is said to be responsible for

    30-40% of world CO2 emissions from fossil fuels.

    Table 6-8: Carbon dioxide emissions of electric power plant given fuel extraction and

    operation (metric tons of CO2 per GW/hour output)

    Source: U.S. Department of Energy

    Coal combustion also results in huge quantities of waste heat require large amounts of

    water for cooling. The collection of this water from major water bodies threatens local

    aquatic life.

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    i) Less emission of harmful gases

    Using natural gas in place of other fuels can help ease a number of environmental

    concerns especially on greenhouse gas emissions, acid rain, smog, solid waste and

    water pollution.

    Natural gas combustion virtually produces no emissions of sulphur dioxide or particulate

    matter and far lower levels of green house gases and nitrogen oxides than such

    competing sources of energy as oil and coal. In addition, unlike the coal and oil

    processes, natural gas process produces virtually no solid waste and has much less

    impact on water quality.

    Table 6-4: Comparison of Air Pollution from Fossil Fuels (pounds of air pollutants

    produced per billion Btu of energy)

    Fuel source Natural gas Oil Coal

    Carbon dioxide 117,000 164,000 208,000

    Nitrogen oxide 92 448 457

    Sulphur dioxide 0.6 1,122 2,591

    Particulates 7.0 84 2,744

    Source: Energy Information Administration

    The inherent cleanliness of natural gas when compared with oil and coal, coupled with

    the high efficiency of natural gas equipment, means that substituting gas for the other

    fuels can help reduce the emission of the air pollutants that produce smog and acid rain

    and that could worsen the green house gases effect.

    ii) High energy efficiency

    The natural gas system is very efficient like the other types of appliances and equipment

    that operate on natural gas. Energy efficiency refers to the energy input per unit of useful

    energy output. In other words, energy efficiency measures how much energy is used or

    lost in providing such things as hot water, steam, warm or cool air. The higher the

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    energy efficiency, the greater the conservation of energy and the lower the

    environmental impacts is.

    When the entire cycle of producing, processing, transporting and using energy is

    considered, natural gas is delivered to the consumer with a "total energy efficiency" ofabout 90 percent, compared with about 27 percent for electricity.

    NATURAL GAS FOR INDUSTRIAL AND COMMERCIALIZATION

    •  Industrial

    •  Transportation

    •  Space cooling

    Natural Gas for Industrial

    Natural gas is used as a primary fuel in industrial sector. In United Kingdom there are

    two classifications which are low temperature applications (500oC).

    Low temperature applications

    a) Steam raising

    Major applicationCentralized boiler – steam distributed through pipe for industrial processes(including space heating)

    Advantage - Fuel flexibility (dual-fuel boiler)- Steam is easy to distributed- Reliable boiler

    Disadvantage - Low overall thermal efficiency (50%)- Transmission losses- Boiler losses

    b) Space heating

    Hot water, steam, direct gas fired

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    c) DryingDirect drying – battery plate dryingAir dryingSteam – paper mill

    d) Air conditioning

    Absorption chiller, Gas engine vapour compression cycle, cogeneration

    High temperature application

    Characteristic of high temperature process

    -  High temperature >750oC-  Often dirty flue gases (coal fired)-  High energy usage-  Low efficiency (2 to 3% is not uncommon)-  Very large variation in design

    a) Bulk metal melting

    Ferrous melting (iron/C metal e.g. steel) up to 1700oCNon ferrous meting (Al, copper, zinc, etc) 300-1400oC

    b) Metal reheating e.g. forging, rolling, pressing, extruding

    Steel 1000-1400oCAluminium alloys 480-550oCBrass 680-780oC

    c) Metal heat treatment (heating metal in its final/near final form)

    Non ferrous heating 700-800oC(annealing, agingprocesses)Ferrous heating 700-1100oC(annealing, normalizing,hardening, temperature etc)Galvanizing 480oC

    d) Glass melting up to 1400oC

    e) Glass annealing 430-700oC

    f) Ceramics

    Pottery tableware, wall tiles up to 1400oCQuality refractory up to 1800oC

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    Natural Gas Role in Malaysia Industry

    In the industrial sector, natural gas commonly used as an energy source for food

    processing, glass making and even steel fabrication. Some selected industries are

    described as follow. 

    i) Ceramic Industry

    Ceramic products are formed from clay or similar substances in the plastic state, which

    is dried and heated at a sufficiently high temperature to provide the necessary strength.

    Natural gas is mainly used in secondary melting, casting of molten steel, cutting and

    refining of billets and slabs.

    Source: www.gasmalaysia.com

    Drying (Spray Dryer) - Instant drying of the wet atomised ceramic slip is achieved

    through a high evaporation process which utilises the hot air produced from the natural

    gas combustion process.

    Drying (Horizontal & Vertical Dryer) - After the powder is pressed to form tiles, drying in

    the horizontal and vertical dryers further reduces the moisture content.

    Drying (Kiln) - Easy controllability of natural gas combustion creates a steady

    temperature distribution profile within the kiln, which is required by ceramic 

    manufacturers. It also increases the thermal efficiency by recycling the high temperature

    hot air in the kiln.

    Fi ure 6-9: Ceramic Tile Production Process

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    ii) Glass Industry

    In the glass industry, cullet and silica are heated into molten glass and subsequently put

    through various heating processes before resulting in an end product.

    Natural gas is mainly used in processes such as melting, refining, fabricating, annealing,

    fiberising, baking and floating bath.

    The end products include television tubes, bottles, tableware and sheet glass.

    Source: www.gasmalaysia.com

    Melting - High levels of luminosity and flame temperature will result in an increased

    thermal efficiency. It also provides a higher rate of heat transfer to the raw material. In

    addition, heat recovery by using regenerators offers substantial energy savings.

    Refining - A constant heating value is crucial for this process in order to maintain the

    required temperature and also to ensure the product quality.

    Fabricating - High flame temperature is essential to heat the fabricating mould. Clean

    combustion products, such as Natural Gas, are necessary to ensure that the mould

    surface remains clean at all times.

    Annealing - A high velocity burner is used to create a uniform temperature distribution

    within the furnace.

    Fi ure 6-10: Gas Production Process

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    Fiberising - Jet flames ensure stability and high temperatures even in high turbulence air

    conditions.

    Baking - A high velocity exhaust gas penetrates and provides a constant temperature

    through out the thick layers of glass fibre.

    Floating Bath - Easy controllability of natural gas combustion creates a steady

    temperature profile to produce high quality sheet glass.

    iii) Rubber Industry

    The manufacturing process for rubber products consists mainly of latex dipping, heating

    and drying.

    Natural gas is the main energy source used for heating in the leaching process, which

    uses hot oil or steam. For drying and curing processes, natural gas powered infrared

    burners are used to enable direct heating.

    Rubber end products include surgical and examination gloves, neurological catheters,

    fingerstalls and decorative balloons.

    Source: www.gasmalaysia.com 

    Figure 6-11: Finger Stall Production Process

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    Source: www.gasmalaysia.com 

    Drying & Curing - Direct heating produced from infrared burners or hot exhaust gases

    are used in this process to ensure better thermal efficiency. The heat from direct heating

    also immediately produces a uniform oven operating temperature. Moreover, the

    cleanliness of natural gas exhaust gases improves the quality of products.

    Steam & Oil Heating - The high combustion ratio for natural gas eliminates the problem

    of soot formation on the heat transfer tubing thus increasing the thermal efficiency

    prolonging the equipment lifespan.

    iv) Steel Industry

    In the steel industry, pig iron and scrap iron are transformed into finished products by

    undergoing various heating processes.

    Natural gas is mainly used in secondary melting, casting of molten steel, cutting and

    refining of billets and slabs.

    The major steel end products include pipes, wires and coated sheets.

    Figure 6-12: Rubber Glove Production Process

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    Source: www.gasmalaysia.com

    Melting - Steel melting is achieved by means of striking an electric arc between graphite

    electrodes and the charge. Natural gas / Oxygen burners are used for supplementary

    firing in this process. It produces a high flame temperature to preheat the raw material

    and maintain molten steel temperature, thus reducing energy costs in the melting

    process.

    Holding - High levels of luminance and flame temperature produced by the combustion

    of natural gas is used to provide enhanced heat transfer (increased efficiency) to

    maintain the molten steel temperature.

    Casting -The easy controllability of natural gas firing provides a constant heating

    environment to hold the molten steel at the required temperature for the casting process.

    Cutting - A natural gas / oxygen cutter is used to ensure a clean cutting surface for the

    steel billets.

    Reheating - By using twin-bed regenerative natural gas combustion burners, a

    substantial amount of energy can be recovered, thus increasing the thermal efficiency of

    the furnace.

    Figure 6-13: Steel Production Process

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    Natural Gas for Transportation

    Generally gasoline or normally known as petrol and diesel are the primary fuel for

    vehicle. However, as the increasingly stringent emission regulations on internal

    combustion engines, there has been an emphasis on using alternative fuels. Alternative

    fuel for transportation from natural gas comes into attention as it burn cleanly and they

    are separated into two types;

    Gaseous fuels Liquid fuels

    Natural gas, LPG, Propane,Hydrogen, Hytane

    Methanol, Di-methyl ether(DME)

    Table 6-5: Automotive fuel derived from natural gas

    Gaseous fuels in general and natural gas in particular are promising alternative fuels due

    to their larger supply, economical cost and adaptability as engine fuels. In vehicle,

    natural gas also emits less nitrous oxide (NOx), and un-burnt hydrocarbons, thus

    reducing acid rain and urban air pollution, also known as smog. However natural gas

    has not been widely used for transportation, primarily due to its lower energy density and

    distribution difficulties.

    Vehicle run on NG

    NG can be used in vehicles as described as follows;-

    a) Conversion to liquid fuels such as gasoline, middle distillates (Shell

    MDS), methanol (Mobil MTG process)

    b) Direct use in the form of Compressed Nat Gas (CNG) in converted petrol

    engines. This is known as Natural Gas for Vehicle (NGV)

    c) Direct usage in the form of Compressed Nat Gas (CNG) in a dedicated

    gas engines

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    The use of alternative gaseous fuel in diesel engines is increasing globally. In fact,

    vehicle that used natural gas as the fuel keep growing day by day. It is reported that in

    the transport sector, there is around 100,000 vehicle on UK roads in 2003, compared to

    less than 5,000 in 2000 are running on natural gas.

    Table 6-6: Liquefied Petroleum Gas (LPG)

    Country 1000tons LPG/year

    (1989)

    Japan 1448

    Italy 1248

    Holland 928

    USA 654

    Canada 521

    Mexico 725

    South Korea 923

    Australia 366

    Thailand 95

    Malaysia 1

    Table 6-7: Natural gas (NGV or CNG)

    Country No of vehichle No of refueling station

    Italy 315,000 300

    USSR 250,000 240

    New Zealand 110,000 360

    USA 30,000 290

    Canada 30,000 117

    Argentina 125,000 160

    Malaysia 2,647 14 (as of 06/2000)

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    Natural Gas Vehicle in Malaysia

    •  Pilot programme in Kertih (1986-1988)

    1 NGV station; 21 bi-fuel vehicle

    •  NGV for vehicle programmes in Klang Valley and Miri (1991-1994)

    14 NGV stations in Klang Valley; 930 bi-fuel vehicle

    Mother-daughter stations – since the gas pipeline is not yet available to

    supply gas, these stations “daughter stations” are supplied with gas from

    a NGV trailer which is filled at a conventional station “mother station”

    located bear the gas pipeline

    1 NGV station in Miri

    •  NGV progress in M’sia

    As at 31st Jan 2002, there are about 6,000 NGV around Kuala Lumpur –

    nearly 95% are taxis. 22 NGV station exist and 5 under construction. NG

    is supply to these station via gas pipelines (conventional system) and

    trailers (mother-daughter system)

    •  Retail price of automotive fuels (10/2004)

    FUEL PRICE,

    RM/LITRE

    NGV

    Petrol

    Diesel

    0.5~0.6

    1.42

    0.83

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    Advantages

    a) Meet strict vehicle exhaust standards –clean burning

    •  Lower level of air pollution

    •  20% less CO2 

    •  70% less CO

    •  No lead, No Sulfur

    •  No particulate/ash

    b) Better safety

    •  Lighter than air (SG ~ 0.6)

    •  Higher lean (low flammability/explosion limit ~5%v/v)

    •  High ignition temperature (~630oC)

    •  Easily detected (odouriser added)

    •  Strong/durable storage design (high pressure ~ 3000 psi) – can withstand

    direct impact form a car speeding at 90 km/hr

    c) High octane rating

    •  Efficient burning

    •  Less knocking

    d) Run more quietly

    •  Gas burn more slowly than petrol

    •  Reduced wear on engine component

    e) Cleaner engine

    •  Improvement in spark plug life

    •  Extend lubricating oil life

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    NGV benefit to nation

    •  Cleaner environment

    •  Positive effect on nation’s cash balance (reduce cash outflow by minimizing

    import of crude oils)

    •  Reduce dependence on liquid petroleum (extend life of oil reserves)

    •  Cost saving s (healthcare, pollution reduction)

    •  Spin-off industries

    NGV benefit to customers (vehicle’s owner)

    •  Substantial savings (50%) in fuel cost

    •  Lower maintenance cost

    •  Contributes to cleaner environment

    •  Better safety

    •  Extended travel range

    •  25% road tax deduction

    •  Duel fuel (petrol & NG) system possible

    NGV limitations

    •  More frequent refueling

    •  Slight reduction in acceleration power (10-15%)

    •  Additional weight

    •  Boot space reduction

    •  Limited filling stations

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    TYPICAL LAYOUT OF A VEHICHLE CONVERTED TO RUN ON NGV

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    MOTHER DAUGHTER STATION

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    Natural Gas for Space Cooling

    NG application for space cooling is mostly for chiller or normally known as air

    conditioning system. Almost 50% of building electricity consumption is for space

    cooling.

    Two basic types of chiller are available:

    1. Vapour Compression Chiller

    -  conventional/commonly used

    -  use mechanical energy as the primary driving force

    2. Absorption Chillers

    -  use heat as the primary driving source

    -  this heat can be from direct fired gas burner and hot water or steam

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    Why Gas Absorption Chiller?

    1 Low running cost low electrical power demand

    gas and steam is cheaper than electricity

    2 No major moving parts to break

    down

    less noise

    extending the life of equipment

    3 Environmental friendly CFC’s free and clean fuel properties

    4 Efficient part load operation ideal for the building where the load is varies

    5 Technology is established available in a range of sizes new technology

    (double effect) has increased the COP to 1.1

    6 Do not take valuable floor space designed for outdoor (rooftops)

    7 CHP/absorption chiller package

    is very cost effective

    8 Combination of chilling and

    heating option is available.

    Chiller can be operated in reverse cycle to

    provide heating.

    Natural Gas District Cooling (GDC) 

    A centralized energy plant generating thermal media (chilled water) for air conditioning

    requirement of several building in a district.

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    GDC advantages

    -  More economical due to higher energy efficiency and low fuel cost with the use of a

    single system over a wide area and to various types of buildings

    -  Less dependence on the national electricity grid

    -  Saving in capital investment through the elimination of individual structures for a

    building’s air-conditioning need.

    -  Higher system reliability with 3 sources of fuel supply : gas, electricity and diesel

    -  Environment friendly with use of clean fuel gas

    -  Reduced air pollution, vibration and noise

    -  Space saving

    -  GDC also usually has a dual function of co-generating electricity

    Table 6-8: GDC World wide application

    Project Location Cooling capacity (RT)

    New Shinjuku Metropolitan District Tokyo 59,000

    New Makuhari Metropolitan District Tokyo 28,000

    Shibaura Metropolitan District Tokyo 10,200

    Kansai Int. Airport Osaka 30,000

    JFK Int. Airport New York 28,000

    New Tokyo Int Airport Narita 33,000

    Denver Int. Airport Colorado 12,450

    Domestic application

    -  Kuala Lumpur City Centre (KLCC)

    -  Kuala Lumpur Int Airport (KLIA)

    -  New Adm. Centre Putrajaya

    -  Universiti Teknologi Petronas(UTP)

    -  Tanjung Langsat

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    Gas District Cooling (M) Sdn Bhd

    Operated since 1996, Gas District Cooling (M) Sdn Bhd (96% Petronas & 4% Tokyo

    Gas) has been responsible for large scale gas cooling projects – At the plant, natural

    gas, piped in from the source, is fired to drive gas turbines, producing electricity which

    can be channeled to client-buildings if so desired. The heat that is ‘co-generated’ with

    the electricity is harnessed to produce steam which is used to drive the steam absorption

    or steam turbine chillers that cool the water. The chilled water is piped to the client-

    buildings. Once thermally spent, the water returns to the plant to be re-chilled. To ensure

    uninterrupted operation, the system is designed to run on alternative fuels (e.g. diesel)

    as a back up.

    Figure 6-14: KLCC GDC Plant

    1. NG is fired to drive the gas turbine and producing electricity.

    2. The heat co-generated with the electricity is used to produce steam which then used

    to drive steam absorption that cool the water. The chilled water is then piped

    throughout the building to provide the cool air.

    3. The water is then returned to the plant.

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    NATURAL GAS FOR PETROCHEMICAL INDUSTRY

    Physical conversion - involve change in physical state e.g.

    •  Liquefaction to LNG (liquefied natural gas) MLNG at Bintulu, Sarawak

    •  Processing to produce NGLs (natural gas liquids), GPP at Kerteh, Trengganu

    •  Compression to produce CNG for NGV mother station at Shah Alam

    Chemical conversion – involves change in molecular structure e.g.

    •  Methanol plant at Labuan

    •  Ammonia plant at Bintulu

    Gas (Methane)

    CH4 + H2) CO + 3H2 

    Synthesis Gas (CO, H2)

    3H2 + N2  NH3  CO + 2H2  CH3OH

    Ammonia Methanol

    Fertilizer Others Fuel Products Others

    UREA Explosive MTBE Acetic Acid

    Ammonium Nitrate Synthetic Fibre Blend Formaldehyde

    Ammonium Phisphate Resin with Gasoline Resin

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    NGLs

    Ethane (Paraffin) Propane (Paraffin)

    Ethylene (Olefin) Propylene (Olefin)

    Polyethylene Ethylene Glycol Polypropylene Cumene

    PVC Ethylene Oxide Isopropanol

    Polystyrene Ethanol Acrylic Acid

    PET Acetic Acid Acetone

    Ethylene plant to produce ethylene based product;

    Low density PE (LDPE)

    High density PE (HDPE)

    Manufacture films (carrier bag)

    Injection moulding (house wares, plastic bottle, toys)

    Monofilament (fishing nets, ropes)

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    Propylene/polyethylene plant

    Manufacture household goods, food packaging, adhesive tape, containers, etc

    Advantages

    -  Reliability of supply (via pipeline)

    -  Constant feedstock material quality

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    PETROCHEMICAL PLANT IN M’SIA

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    EXISTING MAJOR PETROCHEMICAL PLANT

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    NATURAL GAS FOR DOMESTIC MARKET

    This is the main gas market for countries such as Europe and USA (~40%). For

    example, more than 17 millions household (out of 21 millions) in UK is being supplied by

    pipe gas.

    Table 6-9: Breakdown of UK domestic gas utilization

    USAGE %

    Hot water & space heating (central) 70

    Gas fires (space heating) 18

    Cooking 6

    Gas fired heater 3

    Others (tumble dryer, refrigerator) 3

    Natural Gas for Malaysia Domestic Market

    Consumption rate is very small that is mostly used for cooking. Natural gas reticulation

    systems are not available yet except for small housing estate in Kertih (Petronas) and

    (Miri). This reticulation system is not that as attractive as the ‘Pay back time’ is long.

    Potential market is appealing for gas air conditioning especially in condominium.

    Major competitors: LPG and electricity

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    Table 6-10: Natural Gas End User

    Heating fuel

    Power

    generation

    fuel

    Transportation fuel Chemical feedstock

    MethaneC1  Residential

    Industrial

    Single cycle

    gas turbines

    Combined

    cycle gas

    turbines

    NGV vehicle

    Ammonia/

    Urea

    Methanol

    Liquid Hydrocarbon

    Ethane

    C2 

    Residential

    Industrial

    Single cycle

    gas turbines

    Combined

    cycle gas

    turbines

    NGV vehicle

    Ethylene &

    derivates

    Propane,

    C3 /Butane,

    C4 

    Residential

    Industrial

    Back-up fuel LPG vehicle

    Propylene

    Butadiene &

    derivatives

    Condensate

    C5+

    Crude blend Crude blend Crude blend Refinery feed

    Cracker feed

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    NATURAL GAS AS IN LPG UTILIZATION

    Many domestic and commercial application of LPG are similar to those of natural gas,

    but as LPG is available in portable cylinders and disposable cartridges its range of

    applications-especially for recreational and leisure use-is much wider. LPG is used for:

    •  Space-heating

    •  Air-conditioning

    •  Hot-water supply•  Refrigeration

    •  Cooking

    •  Lighting

    Industrial applications are also similar to those of town gas and natural gas, and include

    production and manufacture of:

    •  Gas and chemicals

    •  Ferrous and non-ferrous metals

    •  Engineering equipment and ships•  Heavy clay and ceramics

    •  Glass

    •  Food and drink•  Electrical goods

    •  Vehicles•  Textiles, leather and clothing

    •  Paper and print

    In addition, because of its mobility, LPG can be put to a number of other uses which are

    normally outside the scope of natural gas:

    •  On building and civil engineering sites

    •  In agriculture-various applications•  For automotive purposes and in-transit heating and cooling

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    Advantages of LPG

    -  over liquid fuels

    a) easy handling (moveable cylinder & storage tank)

    b) less pollution

    c) cleaner working environment

    d) high quality product

    e) direct use

    -  over natural gas

    a) higher CV

    b) easy handling (moveable cylinder & storage tank)

    Disadvantages of LPG

    -  over liquid fuels

    a) lower CV

    b) LPG leaf-over

    -  over natural gas

    a) higher pollution

    b) more dangerous

    c) process interruption – frequent filling is required

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    CHAPTER 6 GAS UTILIZATION

    SKN 4123 – COMBUSTION ENGINEERING AND GAS UTILIZATION

    ASSIGNMENT 2

    Electricity is very important in our lives. We used electricity to lighten up the space when

    it is dark, cooking, space cooling and to use electric equipment. Some of the primary

    sources of energy for electricity generation are coal, heavy fuel oil and natural gas.

    Describe in detail on those primary sources in terms of

    i) origin

    ii) conversion method to electricity

    iii) environmental aspect.

    Relevant diagram should be included if necessary.

    Instruction:

      Use font 12 and 1.5 paragraph spacing

      Table of content should be included

      Number of pages not to exceed 10 pages exclude diagram

    SUBMISSION DATE: