GAS QUALITY REQUIREMENTS AS A FACTOR OF SUCCESSFUL LNG PROJECTS IMPLEMENTATION

Main author A. Grunvald VNIIGAZ Russia IGRC2008@gasunie.nl Co-authors N. Izotov V. Nemov

Page 2 of 18

1.

ABSTRACT

World LNG market is marked by favorable environment conditions and high sector profitability. LNG is now an integral part of world gas trade, becoming one of the main factors of world market formation. Global natural gas consumption shows annual growth of 2,5% with LNG representing major part of this growth. In 2005 LNG trade volumes increased by 190 bcm, representing a double growth since the beginning of 1990s. The increase is determined by environment friendly and effective energy consumption growth in North-East Asia and South Europe. Further double growth of LNG market is forecasted by 2015, which will be primarily determined by the rise of natural gas import needs in USA and Great Britain and the rise of demand in Asia (China, Japan, South Korea, India). Gazproms strategic targets in the field of LNG production and supply include: - effective LNG production and supply system organization with the use of sophisticated technologies; - supply diversification and marketing development; - market leadership on world LNG market. Since 2004 Gazprom is implementing a stagewise strategy of world LNG market representation. While being engaged in the first stage of the strategy (organization of spot transactions and LNG/pipeline gas swap operations) LNG was supplied to USA, Great Britain, South Korea and Japan. Total sales amounted to 0,5 bcm. During the next stage of the strategy implementation Gazprom plans to organize LNG production in Russia and third countries providing an independent LNG marketing. To approach a market effectively Gazprom enters in advance the existing LNG projects on other companies raw material bases through acquisition or change. A systematic LNG production build-up (in Russia and abroad), as well as tanker capacity growth together with marketing efforts will allow Gazprom to come to a forefront of the world LNG market by 2030. The most attractive market for Gazprom is Atlantic basin as it is the most receptive and liquid market with demand exceeding supply. One of the key factors of successful business conduct on LNG market is meeting the requirements specified by receiving terminals and pipeline systems in countries importing LNG. The main parameters defining gas quality are: - Natural gas heating value defining its energy content; - Wobbe index which serves to determine gas interchangeability and efficient gas/air proportion in combustors. The research task for VNIIGAZ and this report is to analyze the requirements of LNG quality and interchangeability on receiving terminals and pipeline systems in importing countries and analyze statutory documents in these countries in order to develop proposals for quality of LNG exported by Gazprom. VNIIGAZ made an analysis of operational characteristics of receiving terminals, pipeline systems and statutory documents in countries importing LNG to educe requirements of imported LNG quality. Obtained results are listed below.

Asia-Pacific Region
Gas heating value in Asian countries importing LNG exceeds 1066 Btu/cf. Japan and South Korea are interested in importing high-heating LNG as gas quality in these countries is regulated by changing its composition using an output of by-products. At the

Copyright 2008 IGRC2008

Page 3 of 18 same time new LNG markets in China and India are dependent on prices and are ready to import gas of various qualities.

Europe
European countries importing LNG (Great Britain, Spain, France) import gas with different heating value: while in Great Britain requirements of gas quality are strict (Wobbe index 1315 1529 Btu/cf), Spain and France import gas of various quality. On the whole gas heating value limit in Europe is 940 1210 Btu/cf. USA Currently there is no single standard or act regulating natural gas quality and interchangeability in USA. Major pipeline systems impose different requirements of gas quality, and as a result, there are different pumping tariffs in major pipelines. According to the report of National Petroleum Council, the majority of LNG suppliers in the world sell gas with a heating value much higher than heating value of gas in US pipelines (Fig. 1, 2), therefore Federal Energy Regulatory Commission is elaborating the law imposing general requirements of gas supplied to American market. While the law is being elaborated the following temporary gas quality and interchangeability requirements exist in USA: - maximum Wobbe index 1400; - maximum heating value approx. 1070 Btu/cf - maximum butanes 2%; - maximum inerts 4%. Results of VNIIGAZ research will be the basis for development of proposals on the quality of processed and transported LNG, technologic scheme of gathering facilities and gas conditioning for Gazprom in order to achieve necessary LNG quality meeting consumers requirements.

Copyright 2008 IGRC2008

Page 4 of 18

CONTENTS

1. 2. 3. 4. 5.

Abstract ................................................................................................. 2 Body of Paper......................................................................................... 5 References ........................................................................................... 17 List Tables............................................................................................ 18 List Of Figures ...................................................................................... 18

Copyright 2008 IGRC2008

Page 5 of 18

2.

BODY OF PAPER

Background LNG production is growing rapidly at the present time. The growth is determined by the higher demand for this kind of fuel in the world. Countries, for those LNG is a brand new product, enter the list of its consumers. Consumers existing for a long time and the new ones receive LNG from various producers and before turning it to use for their own needs they have to run a qualitative investigation of gas obtained after regasification. They must make sure if it can be turned directly to national gas-transporting networks for utility users or some follow-on operations are necessary before feeding gas into pipe. LNG production is a complicated process and requires meeting a number of conditions that are necessary for obtaining a product that would satisfy consumers expectations. Furthermore, large-capacity LNG production is hundred-per-cent export oriented, i.e. all volumes are supplied to consumers in the other countries, where specific requirements to the product are usually set. To ensure the LNG quality is properly maintained by the producers and required characteristics are observed by consumers before feeding gas into national pipelines it is essential to regulate with certain standards, norms and rules the whole chain of LNG production, storage, transportation, loading/unloading, regasification. Qualitative characteristics of LNG and regasified natural gas are regulated with standards both national ones within a country and international ones. Investigation of current national and international gas and LNG quality standards, definition of new standards compile an important task in frames of LNG export strategies implementation. Qualitative characteristics of LNG LNG liquid state density depends on its composition and is usually found between 430 3 kg/m and 470 kg/cm, in extremis this quantity can reach 520 kg/cm. Density also depends on liquid temperature with gradient around 1,35 kg/m-3 C-1. Density may be measured directly, but usually it is calculated by composition, defined with the help of chromatographic gas sulfur analysis. LNG has boiling-point that corresponds to its composition and lies between 166 and 157 C below zero by atmospheric pressure. Boiling-point change in vapor pressure function makes up around 1,25*10-4 C/Pa. LNG density depends on pressure and composition and can be found in the range from 370 to kg/cm, the average value is 390 kg/cm. By gasification and pressure close to atmospheric 1 volume of LNG gives around 600 volumes of natural gas (1 cm of LNG = 600 cm natural gas). The most important gas quality characteristic is its heat value. Energy intensity of LNG or its calorific power, which is quantitatively estimated by high heat value (HHV), varies because producers leave different amounts of ethane, propane and butanes in a gas, and various consumers requirements are also different. Pure methane has HHV 39,8 mj/cm, but in fact it is less as a rule and makes up 36 38 mj/cm. Presence of high-molecular compound raises gas heat value. In calculations of gas burning processes Wobbe index is used an indicator that corresponds to the ratio of gas heat value to square root of relative density by standard conditions. It characterizes constancy of heat flow obtained from gas burning. Wobbe index is called high (WH) and low (WL) depending on given gas heat value. The unit of measure is megajoule by cubic meter (mj/cm).

Copyright 2008 IGRC2008

Page 6 of 18 In terms of physics, Wobbe index means specific calorific power of a burner with constant constructive dimensions by constant operating regime. With the help of Wobbe index a complex influence of heat value and gas density on burner calorific power is easily to control. HHV and Wobbe index, of course, do not reflect all quality problems. There are consumers that set forth more specific requirements. Consumers that use natural gas as a raw material for industry but not as a fuel may require the certain range of gas composition. Any composition change outside this range may have influence on efficiency and productivity of a plant, even through Wobbe index and heat value stay constant. High methane and ethane proportion in gas composition assumes a possibility to obtain high-quality end product with competitive market price. LNG producers and consumers Key LNG producers are currently located in South-East Asia and Middle East, North Africa and Trinidad are also important players. If still in the year 2005 Indonesia was on the first place in the world by LNG production, then in the year 2006 Qatar took the lead with production volume 31,1 bcm. Indonesia consolidated its grip on the second place with production volume 29,6 bcm, Malaysia on the third place (28 bcm). So, three leading countries occupied 42 % of production that says about high enough concentration rate. For comparison, 2001 three leading countries occupied 55 % of LNG production, i.e. concentration in the industry was significantly higher. Last 5 years we can see production dispersal by countries in view of new producers success. The data of LNG production by the world countries are shown in the table 1. Table 1 LNG production by countries 2006 place 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. The year of production start 1997 1977 1983 1964 1989 1999 1999 2005 2000 1972 1977 1969 1970 Production volume, bcm 2001 2006 16,5 31,1 31,8 29,6 20,9 28,0 25,5 24,7 10,2 18,0 7,8 17,6 3,7 16,3 15,0 7,4 9,0 7,1 1,8 0,8 142,5 11,5 9,8 7,1 1,7 0,7 211,1 2001 2006 production growth rate, % 88,0 -8,0 34,1 -3,4 76,8 124,5 345,2 55,3 9,0 0,0 -3,9 -6,5 55,1

Country Qatar Indonesia Malaysia Algeria Australia Nigeria Trinidad & Tobago Egypt Oman Brunei UAE USA (Alaska) Libya Total:

Key LNG consumers are currently located in East Asia, North America and West Europe. Japan since 1970 is unconditional leader by LNG consumption. In the year 2006 supplies volumes in this country made up 81,9 bcm. Only single Japan currently occupies 39 % of total world LNG consumption, however, in 1990th its share exceeded 60 %. Republic of Korea, being found on the second place, yields to Japan more than twice, having consumed 2006 LNG in volume of 31,1 bcm. But rate of production growth in this country is much higher: it made up almost 60 % against 10,5 % in Japan. Spain has consolidated its grip on the third place in the world with 2006 consumption volume 24,4 bcm. Since 2001 LNG consumption in this country have risen 2,5 times.

Copyright 2008 IGRC2008

Page 7 of 18 So, three leading countries currently occupy 2/3 of the total world LNG consumption: the concentration rate is significantly higher than in production field. But it also has decreased in comparison with 2001 (at that time it was 74,3 %), i.e. consumption dispersal takes place. The data of LNG consumption by the world countries are shown in the table 2. Table 2 LNG consumption by countries 2006 place 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. The year of consumption start 1969 1986 1970 1970 1965 1990 2004 1994 1982 1964 1971 2001 2006 2006 2001 2000 2003 Consumption volume, bcm 2001. 2006. 74,1 81,9 21,4 34,1 9,8 24,4 6,6 16,6 10,5 13,9 6,3 10,2 8,0 4,8 5,7 2,4 5,2 0,3 4,3 3,5 3,1 2,0 1,0 0,9 0,7 0,5 0,3 211,1 2001 2006 consumption growth rate, % 10,5 59,4 148,2 151,3 32,8 61,9 18,4 78,3 -41,0 657,7 14,3 -2,0 48,1

Country Japan Republic of Korea Spain USA France Taiwan India Turkey Belgium United Kingdom Italy Portugal China Mexico Puerto Rico Greece Dominican Republic Total:

0,6 0,5 142,5

Standardization necessity and problem solution ways LNG industry is rapidly developing, while new processes and new equipment standardization follows after innovations in technology and LNG production and utilization machinery implementation. New technologies that are being developed call for new standards to ensure harmonized international cooperation. LNG standardization is a very important but complicated question. LNG composition and quality may vary depending on a plant or a country it is produced in and/or a source it is supplied from. Its heat value may vary in a broad range. Every country importing LNG has its own gas quality and composition requirements. In the USA, a typical limit of gas caloricity in a market is equal around 1100 Btu/cf (one Btu or British thermal unit = 1055 joule). Existence of these limits rides the fact that gas caloricity can influence, for example, flame characteristics, smoke, soot and emission. By this reason LNG supplied by some plants can not be delivered in certain US ports as its caloricity exceeds 1100 Btu/cf and regasification units can not decrease gas caloricity before it goes to consumers. For example, US terminal Everett near Boston has difficulties in receiving LNG from any other sources except Trinidad and Algeria. To solve problems of supplies countries-LNG importers can apply to their systems flexibility increasing. They also can to cooperate with LNG producers with a view to increase the amount of compatible LNG sources through coordinated standards development and implementation. At the present time there is revealed a necessity to reappraise the current gas quality criteria for LNG supplies expansion and also for securing guarantees for LNG consumers.

Copyright 2008 IGRC2008

Page 8 of 18 Confronted with increasing market globalization and growing competition the international standardization system must be strengthened by homogeneous regional and national standards creation. The up-to-date approach to standardization from the principal agents in this activity state structures and producers is determined by the fact that standardization today is a key part of international trade relations policy in the world scale. It is a stabilizing factor of providing socio-economic activity field functioning, eventually, aggregate of national economics competitiveness increasing instruments. The essence of this approach lies in dividing state and producer responsibility. State is responsible for such global categories as industry production safety, human life and health protection, environment preservation, property defense. Producer, for his part, takes responsibility for production competitiveness. LNG standardization system has important intergovernmental issue, i.e. certain countries produce LNG, then transport it totally other ones that consume it. Every country of the world has its own national standard organization. The list of national standard organization is shown in the table 6. LNG quality requirements in different countries are determined by formed for a long time national gas networks operation conditions and burners setups by consumers. However, consumers will have different heat value of LNG, imported from different sources. Such a distinction leads to considerable financial losses of suppliers and expenses concerned with gas quality by consumers. As LNG has different characteristics including different heat value, interchangeability of LNG and pipeline gas has great significance. According to ISO definition (European standard EN 12838:2000), natural gas interchangeability LNG quality measure is a close heat value of pipeline gas and gases obtained from LNG regasification. Gases are interchangeable when they can be utilized by the same burning conditions without customary burner parameters retargeting. Natural gas quality requirements pursue several aims, including corrosion prevention, liquid fall-out in pipeline avoidance and keeping burner operation parameters permanent. Gas quality requirements in terms of corrosion restrict 2, 2S, mercaptan and general sulfur concentration. LNG plants purify gas from 2 to 50 ppmv (by volume) to avoid solid phase fallout in cryogenic equipment. Sulfur requirements are determined by Japanese market that limits H2S abundance < 5 mg/cm and general sulfur < 30 mg/cm. Meeting these requirements for Japan also means meeting requirements for Europe and the USA (except California, where general sulfur limit is 18 mg/cm). To prevent liquid fall-out gas transporting companies set forth requirements limiting butane, pentane and heavier hydrocarbons content. LNG plants must move heavy hydrocarbons away to avoid their freezing in liquefaction process. These heavy hydrocarbons are by-product that finds a market as raw material for industry. Being the principal gas quality characteristic, heat value, expressed by HHV is used to decide on gas interchangeability. HHV changes considerably depending on original raw gas composition, therefore, interchangeability of LNG from various producers proves to be a serious problem. Examples of heat value requirements for different countries are shown on the Figure 1.

Copyright 2008 IGRC2008

Page 9 of 18
45 44 43 42 41 mj/cm 40 39 38 37 36 35 34 USA Canada Japan United Kingdom France Spain

Figure 1 LNG high heat value requirements in the world In that way, Atlantic basin countries utilize regasified LNG with lower heat value. The largest consumers of LNG of this kind are the USA and the United Kingdom. Asia-Pacific region consumers prefer purchase LNG with higher HHV, though their national standards determine that gas directed to consumers must be poor in terms of heavy components. The principal LNG producers for these countries are Middle East states. There are two methods of HHV reduction by liquefaction: liquefied petroleum gas (LPG) extraction and nitrogen addition. LPG extraction rate is determined by the LNG consumption market as well as by the LPG consumption market. Price for LPG or its components and also markets accessibility have significant importance. If total profit from LNG sells with minimal HHV and LPG percentage exceeds profit from LNG sells with maximal HHV, in this case LPG extraction rate is as high as possible. If there is a necessity to change significantly Wobbe index, in that case nitrogen addition may be more effective than LPG extraction. US national pipeline gas quality standards allow nitrogen percentage to 3 % mol. In many cases nitrogen must not be added. Natural gas contains it, and sometimes its concentration can reach 5 % mol. To leave nitrogen in LNG it is necessary just to overcool LNG, but this process requires additional costs. Costs rise at around 4 % per 1 % nitrogen concentration increase. Nitrogen addition is practically a single method HHV increasing except mixing with gas from other source. LPG addition is a relatively simple process because it can be pumped from a pipeline in liquid state, and LPG mixing with natural gas is not difficult. LPG pumping is a common practice in Japan where national gas quality standards require high caloricity of natural gas, which is used in countrys infrastructure. One of the Japanese LNG sources is Kenai plant in Alaska that supplies almost pure methane. LNG of this kind requires LPG pumping for the purposes of interchangeability with traditionally used high LNG. When looking at the problem globally, there may be revealed that the best technical decision is LPG pumping at consumers terminal. If remaining parameters are equal, LPG transport and storage apart from LNG and then adding it into LNG at consumers before feeding

Copyright 2008 IGRC2008

Page 10 of 18 in a pipeline is a cheaper option. However, area limits at importing terminal may lead to a decision of LPG adding into LNG before supplying to export. One of the greatest quality problems on liquefaction stage is ethane extraction. National quality standards in the United Kingdom (and Californian quality standards in the USA) limit ethane concentration in LNG to 6 % mol. If gas is supplied to a plant for LNG production and contains 8-9 % of ethane, it must be used within a plant or be exported. The export problem is that LNG plants are usually located in isolated places where industry demand for ethane is negligible. Ethane price is commonly incomparable with extraction cost. Ethane use as a fuel within a plant is not a simple question: except of possible problems with redundant fuel there are limits of ethane concentration in a fuel fed into a gas turbine. A typical plant consumes around 10 % of raw gas as a fuel. If raw gas contains 9 % mol. of ethane, and LNG must contain 6 % mol. of ethane in this case a fuel composition will be: 64 % of methane, 36 % of ethane and HHV 47.9 mj/cm. A fuel, containing 36 % of ethane, may have a negative impact on gas turbines work and NO emission. Potential consequences of use from some sources may be the following: gas devices work changes which can lead to incomplete gas burning dangerous level of carbon monoxide concentration in waste gas; increased NOx emission that represents an important ecological factor; necessity of plants equipment changes for certain gas users; necessity of vehicles gas engines resetting.
58 57 56 55 54 mj/cm 53 52 51 50 49 48 47 USA Canada Japan Europe

Figure 2 LNG Wobbe index requirements in the world

Copyright 2008 IGRC2008

Page 11 of 18

Figure 3 HHV of LNG produced in the world compared with consumers requirements As is shown on the Fig. 3, not all the LNG produced in the world meets all consumers requirements. Extremely high Libyan LNG caloricity, for example, meets requirements of its single consumer Spain, and only this country buys LNG from Libya. USA, in versus, require LNG with low caloricity, so they are buying from Trinidad, Egypt and Norway. But basically, much of LNG meets principal consumers requirements, which lie in the middle value area. It is worth to emphasize that consumers reference to suppliers is not rigid and is not determined by LNG quality only. For example, Japan widely uses LNG preparation at terminals that consist in its caloricity increasing by means of LPG saturation. By this way Japan can import LNG from Alaska that does not meet national requirements. LNG quality standards and requirements in the USA LNG quality requirements in the USA are determined at regasification terminals particularly, but not at state level, as it are commonly accepted, for example, in Europe. As a result, each pipeline and each LNG terminal must have its own set of gas quality technical conditions. As American gas infrastructure has being developed sufficiently long time ago, it is meant for poor gas (with little heavy hydrocarbons content and low heating value). Current LNG heating value is, as a rule, higher than ordinary gas that is being transporting in the USA by pipelines, so, it does not meet marginal HHV level requirements. Usual LNG contains more ethane, propane and butanes than American domestic pipeline gas. Furthermore, LNG practically does not contain carbon dioxide and nitrogen that usually belong to domestic natural gas. But USA consumers are interested in receiving fat gas, from which they can extract ethane, propane and butane. They are salable as individual products and can be used as a raw material in other industries. Standardization organization in the USA is the National institute for standards and technology (NIST). It is non-governmental nonprofit organization that coordinates free-will standardization work in private sector, leads standards creators activity, and makes decisions of attaching national status to a standard. NIST works out no standards but serves a the single organization in the USA, approving national standards. Copyright 2008 IGRC2008

Page 12 of 18 National (federal) standards contain compulsory requirements that apply in general to safety issues. American Society for Testing and Materials (ASTM) is an international organization that works out, publishes and implements technical standards in many industries including LNG industry. The Society has published ASTM D4784-93 (2003) Standard for LNG Density Calculation Models. It does not touch upon LNG use safety problems. Safety aspects are described in Standard of the National Fire Protection Association NFPA 59 Standard for the production, storage, and handling of Liquefied Natural Gas. American Gas Association (AGA) that was founded 1918 represents 200 local gas companies, supplying natural gas to utilities and industry consumers throughout the country. AGA members supply 92 % of total natural gas, control gas quality by consumers for the purpose of meeting national quality standards, provide country pipeline system stable work. The other standards that determinate LNG and regasified gas quality requirements in the USA are: 49CFR Part 193 Liquefied Natural Gas Facilities: Federal Safety Standards; 33CFR Part 127 Waterfront Facilities Handling Liquefied Natural Gas and Liquefied Hazardous Gas; NFPA 59A Standard for the Production, Storage, and Handling of Liquefied Natural Gas; NFPA57 Standard for Liquefied Natural Gas Vehicular Fuel Systems; International Regulations BS7777 and EN1473. Natural gas composition requirements at the point of entry into American domestic pipeline system are represented in the table 3. Table 3 LNG quality requirements in the USA Parameter High heating value Wobbe index Nitrogen, max. Rare gases, max. Butane, max. Hydrogen sulphide, max. Sour sulfur, max. General sulfur, max. Unit mj/cm (btu/cf) mj/cm (btu/cf) % mol. % mol. % mol. % mol. % mol. % mol. Value 36,1-39,3 (985-1070) < 51.4 (< 1400) 3-4 2 4-16*10-4 4-17*10-4 85-340*10-4

LNG quality standards and requirements in Canada Natural gas composition requirements at the point of entry into Canadian domestic pipeline system are represented in the table 4. Table 4 LNG quality requirements in the Canada (temporary recommendations of TransCanada Pipelines) Parameter

High heating value Wobbe index

Hydrogen sulphide, max. Dew point by moisture, max. General sulfur, max. Oxygen, max. Rare gases, max. Carbon dioxide, max. Butane, max.

Unit mj/cm (btu/cf) mj/cm (btu/cf)

mg/cm (% mol.) mg/cm mg/cm (% mol.) % mol. % mol. % mol. % mol.

Value
36,0-40,97 (967-1100) 47,2-51,2 (1265-1375) 23 (15*10-4) 65 115 (75*10-4) 0,4 4 2 1,5

Copyright 2008 IGRC2008

Page 13 of 18 LNG quality standards and requirements in European countries EU countries are aiming at harmonious development of their economies. It determines general principles of integration and certain countries ecological requirements. Community is looking for a consistent way of providing solution to a common task using the same methods. International standardization system development is the instrument of reaching these goals. It applies also natural gas that many countries import. To ensure compliance of supplied gas quality with its consumption conditions a series of international and national standards were worked out. European standards, which are known as EN (abbreviation for European Norms), are being developed by two standard organizations CEN and CENELEC. Each EU member publishes and accepts them through national standard organizations. Excluding names and design the content of each national standard is identical. European gas markets have the developed system of coordinated standards. Furthermore, they direct their attention to gas quantitative characteristic based on acceptable Wobbe index range. States have different gas quality requirements and various ways to reach this quality. Countries, importing LNG, traditionally receive LNG with higher Wobbe index than countries, mainly importing pipeline gas. These differences are historic result of European countries development. The North-West Europe receives gas from Norway, UK, Netherlands and Russia via pipelines and not long since also by way of LNG supply. The East Europe receives gas via pipelines from Russia and Turkmenistan; while South Europe receives gas via pipelines from Russia and Algeria, and also in the form of LNG. Some regasified gas quality characteristics are shown in the table 5. Table 5 - LNG quality requirements in Europe Parameter High heating value Wobbe index Density General sulfur, max. H2S +COS ( S), . Sour sulfur, max. Oxygen, max. Carbon dioxide, max. Dew point by moisture, max. Dew point by hydrocarbons, max. Unit mj/cm (btu/cf) mj/cm (btu/cf) cm/cm mg/cm mg/cm mg/cm % mol. % mol. 0 C at 70 bar(a) 0 C at 1-70 bar(a) Value 35,0 45,0 (940 1210) 48,96 - 56,92 (1315 1529) 0.555 - 0.700 30 5 6 0.01 2.5 -8 -2

LNG quality standards and requirements in Japan Japan is the largest LNG importer that has been consuming it for more than 35 years. Japan Gas Association (JGA) works out standards and requirements for domestic and industrial consumers, supports industrial and utility consumers supplies with gas that would meet their requirements. JGA controls quality of imported LNG and its compliance with national standards. Standards worked out by JGA regulate LNG characteristics by heating value (caloricity). Japanese government participation in standardization is large enough. National standardization system in the country is created on the basis of the Industry Standardization Law in accordance to that Japan Industrial Standards Committee (JISC) has been founded 1949 as a consulting organ by the Ministry for foreign trade and industry. Japanese industrial standards are to be approved by proper industries ministers but their use and it is worth to emphasize is free-will. Copyright 2008 IGRC2008

Page 14 of 18 In general LNG quality requirements range on the Japanese market is the following: - high heat value 39,7 43,3 mj/cm (1066 1163 btu/cf); - Wobbe index 52,89 57,73 mj/cm (1420 1550 btu/cf). Conclusions As the world LNG market is constantly developing gas interchangeability becomes more and more important issue. At the same time producers and consumers fail to reach mutual consent about the single standard on global level. The main difficulty is that national pipeline systems in various countries are operated against technological normative documentation that has been worked out long time age. Taking it into consideration, US Commission for energy and regulation has noted that at the present stage universal standards application even within USA would be destructive for the current trade, while LNG sellers and buyers will try to preserve the way of business. LPG extraction has become a common practice and it will remain the preferred method to ensure lower HHV both at liquefaction and regasification stages. Mixing with nitrogen is in use at the existing terminals for HHV decreasing, and it is going to be used later on as the way of moderate cost at regasification stage, especially when control factor is Wobbe index. HHV increasing will be achieved through pumping LPG into regasified LNG, however, not at liquefaction stage because of high transportation cost. High ethane percentage in natural gas may cause problems by partially utilizing gas as a fuel. It is concerned with both gas turbines fuel norms and higher NOx emission possibility. Ethane extraction by LNG production is a controversial solution. When there are no ethane consumers in the region of plant location, its extraction can be expedient either at regasification terminals or by gas-processing plant before feeding into main gas pipelines. Ethane consumers availability makes it possible to increase LNG plant profit as ethane extraction can be organized technological liquefaction cycle.

Table 6 (supplement) List of national standardization organizations in countries existing and potential LNG consumers Country Albania Argentina Australia Austria Belgium Brazil Canada Chile China Croatia Denmark Egypt Finland France Copyright 2008 IGRC2008 Organization name General Directorate of Standardization (DSC) Instituto Argentino de Normalizacion (IRAM) Standards Australia (SAA) Osterreichisches Normungsinstitut (ON) Institut Belge de Normalisation (IBN) Associaao Brasileira de Normas Tecnicas (ABNT) Standards Council of Canada (SCC) Instituto Nacional de Normalizacin (INN) China State Bureau of Quality and Technical Supervision (CSBTS) State office for Standardization and Metrology (DZNM) Dansk Standard (DS) Egyptian Organization for Standardization and Quality Control (EOS) Finnish Standards Association (SFS) Association francaise de normalisation (AFNOR)

Page 15 of 18 Germany Greece Hong Kong India Indonesia Ireland Israel Italy Jamaica Japan Luxemburg Malaisia Netherlands New Zealand Norway Oman Pakistan Peru the Philippines Poland Portugal Republic of Korea Saudi Arabia Singapore Slovenia Spain Sri-Lanka Sweden Thailand Trinidad and Tobago Turkey Ukraine United Arab Emirates United Kingdom Uruguay USA Copyright 2008 IGRC2008 Deutsches Institut fr Normung (DIN) Hellenic Organization for Standardization (ELOT) Industry Department (ID) Bureau of Indian Standards (BIS) Badan Standardisasi Nasional (National Standardization Agency, Indonesia) (BSN) National Standards Authority of Ireland (NSAI) Standards Institution of Israel (SII) Ente Nazionale Italiano di Unificazione (UNI) Jamaica Bureau of Standards (JBS) Japanese Industrial Standards Committee (JISC) Service de l'Energie de l'Etat (SEE) Department of Standards Malaysia (DSM) Nederlands Normalisatie Instituut (NNI) Standards New Zealand (SNZ) Norges Standardiseringsforbund (NSF) Directorate General for Specifications and Measurements Ministry of Commerce and Industry (DGSM) Pakistan Standards Institution (PSI) Instituto Nacional de Defensa de la Competencia y de la Proteccion de la Propiedad Intelectual (INDECOPI) Bureau of Product Standards Department of Trade and Industry (BPS) Polish Committee for Standardization (PKN) Instituto Portugues da Qualidade (IPQ) Agency for Technology and Standards (ATS) Saudi Arabian Standards Organization (SASO) Singapore Productivity and Standards Board (PSB) Standards and Metrology Institute (SMIS) Asociacin Espaola de Normalizacin y Certificacin (AENOR) Sri Lanka Standards Institution (SLSI) Standardiseringen i Sverige (SIS) Thai Industrial Standards Institute (TISI) Trinidad and Tobago Bureau of Standards (TTBS) Turkish Standards Institution (TSE) State Committee of Ukraine for Standardization, Metrology and Certification (DSTU) Directorate of Standardization and Metrology Ministry Finance and Industry (SSUAE) British Standards Institution (BSI) Instituto Uruguayo de Normas Tecnicas (UNIT) American National Standards Institute (ANSI)

Page 16 of 18 National Institute of Standards and Technology (NIST) Venezuela Vietnam Fondo para la Normalizacin y Certificacin de la Calidad (FONDONORMA) Directorate for Standards and Quality (TCVN)

Copyright 2008 IGRC2008

Page 17 of 18

3.

REFERENCES
3.1 Scientific-research report LNG Quality Demands Development. VNIIGAZ, 2007.

Copyright 2008 IGRC2008

4.

LIST TABLES
Table 1 LNG production by countries5 Table 2 LNG consumption by countries..6 Table 3 LNG quality requirements in the USA.11

Table 4 LNG quality requirements in the Canada (temporary recommendations of TransCanada Pipelines)..11 Table 5 - LNG quality requirements in Europe.12 Table 6 (supplement) List of national standardization organizations in countries existing and potential LNG consumers..13

5.

LIST OF FIGURES
Figure 1 LNG high heat value requirements in the world.8 Figure 2 LNG Wobbe index requirements in the world..9 Figure 3 HHV of LNG produced in the world compared with consumers requirements..10