1

History
Approximately 1000 BC

Lightning strikes ignited

natural gas seeping from the

ground, creating fires from
the earth.

These fires puzzled the early

civilisations, and were the
root of much myth and
superstition.

In Persia, Greece and India,

people built temples around
these eternal flames for
religious practices.
Gas Process Engineering - CGE667

At the end of this lesson, you should

be able to:

explain the origin and the chemistry of natural

gas.

explain the sources of natural gas and describe

the utilisation and the transportation ofnatural
gas.

discuss about the natural gas industry.

History
Around 500 BC

Chinese discovered the

potential use of natural gas.

Chinese were the first to use

natural gas commercially.

Gas was obtained from

shallow wells, transported in

bamboo pipes and used to
produce salt in gas-fired
evaporator (by boiling
seawater).
Gas Process Engineering - CGE667

History
Late 17th & Early 18th Century

Manufactured or town gas

(gas manufactured from

coal) was used for
streetlights and house
lighting in Britain and United
States.

Gas Process Engineering - CGE667

History
1821

The first well specifically intended

to obtain natural gas was dug in
Fredonia, New York by William
Hart.

After noticing gas bubbles rising to

the surface of a creek, Hart dug a
27-foot well to try and obtain a
larger flow of gas to the surface.

The gas was transported to local

houses and stores using wooden

pipe.

William Hart = Americas father of

natural gas

Gas Process Engineering - CGE667

History
1885

Robert Bunsen invented a device

that mixed natural gas with air in the

right proportions, creating a flame
that could safely used for heating
and cooking.

A device is now known as Bunsen

Burner.

The invention of Bunsen Burner

opened up new opportunities for the

use of natural gas.
Gas Process Engineering - CGE667

History
Pre-World War II

Throughout the 19th century, natural gas used almost

exclusively as a source of light.

Its use remained localised due to the difficulty to

transport over long distances.

Natural gas was often an unwelcome by-product in

crude oil production.

It was usually just allowed to vent into the

atmosphere, or burnt, when found alongside coal and

oil.
Gas Process Engineering - CGE667

History
Post-World War II

After World War II, advances in welding , pipe

manufacturing, and metallurgical technology
allowed for the construction of reliable long
distance pipeline.

The consumption of natural gas increased rapidly

due to several factors:

New use of natural gas as replacement of coal as

fuel for providing home and industrial heating.
Development of new markets
Use of natural gas in manufacturing and
processing plant
Strong demand for low-sulfur fuels.
Gas Process Engineering - CGE667

Natural Gas Origin

Natural gas has been formed by the degradation

of organic matters accumulated in the past
millions of years.

Two main mechanisms responsible for the

degradation:

Biogenic
Thermogenic

Biogenic gas is formed at shallow depths and

low temperature by the anaerobic bacterial
decomposition of sedimentary organic matter.

Gas Process Engineering - CGE667

Natural Gas Origin

Thermogenic gas is formed at deeper depths by:

Thermal cracking of sedimentary organic matter
(into hydrocarbon liquids and gas).
Thermal cracking of oil at high temperatures.

Biogenic gas consists almost entirely methane.

Thermogenic gas contain methane and significant
concentrations of ethane, propane, butanes and
heavier hydrocarbons.
Gas Process Engineering - CGE667

 Methane
Acid
Gas
Ethane
Propane
Butanes
Pentanes & heavier
hydrocarbons

Carbon Dioxide
Hydrogen Disulfide
Mercury
Nitrogen
Argon
Hydrogen
Helium
Other impurities

Gas Process Engineering - CGE667

Natural Gas Composition

NonHydrocarbons
Hydrocarbons

Composition varies from

location to location

Gas Process Engineering - CGE667

Important Impurities

Water
Sulfur Species Hydrogen disulfide (H2S),

Carbonyl Sulfide (COS), Carbon Disulfide (CS2),

Elemental Sulfur, Mercaptants (RSH).

Mercury
Naturally Occurring Radioactive Materials
(NORM)

Oxygen
Gas Process Engineering - CGE667

Natural Gas Classification

Natural gas is considered dry when it is almost

pure methane.

When other hydrocarbons are present, the natural

gas is wet.

Natural gases are classified according to their liquids

content as either lean or rich.

The more the liquids (C2+), the richer the gas.

Extraction of these liquids produces a product that

may have a higher sales value than does natural gas.

To quantify the liquids content of a natural gas

mixture, the industry uses GPM.
Gas Process Engineering - CGE667

Natural Gas Classification

GPM = gallons of liquids recoverable per 1000

standard cubic feet (Mscf) of gas.

GPM - gallons per Mcf

Mcf equals the volume of 1,000 cubic feet (cf) of
natural gas.

Lean gas will usually be 1 GPM, whereas a rich

gas may contain 3 or more GPM.

Natural gases are considered according to their

sulfur content as either sweet or sour.

Generally, sweet means the gas contains less

than 4 ppmv of H2S.
Gas Process Engineering - CGE667

Sources of Natural Gas

Conventional
Natural Gas

Natural Gas
Non-Conventional
Natural Gas
Gas Process Engineering - CGE667

Conventional Natural Gas

Either associated or non-associated gas.

Associated gas is found with crude oil as
dissolved gas or as gas-cap gas.

Non-associated gas is sometimes referred to as

gas-well gas or dry gas

However, the dry gas can still contain significant

amount of heavier hydrocarbons that are
separated as a liquid called condensate/NGL.

Gas Process Engineering - CGE667

Conventional Natural Gas

Natural gas
processing

Crude Oil

Produced
Water

Condensate

Oil
Well

Gas Process Engineering - CGE667

Gas
Well

Gas
Well

Non-Conventional Natural Gas

Non-conventional reservoirs are reservoirs that do

not produce economic volumes of natural gas
without assistance from massive stimulation
treatments or special recovery processes and
technologies.

Potential non-conventional natural gas sources:

Coal bed methane (CBM)
Natural methane hydrate
Shale gas
Tight gas
Gas Process Engineering - CGE667

Non-Conventional Natural Gas

Gas Process Engineering - CGE667

Resource Triangle

Gas Process Engineering - CGE667

Coal Bed Methane

Also known as coal seam gas (CSG).

Refers to methane adsorbed into the solid matrix
of coals.

The presence of this gas is well known from its

occurrence in underground coal mining, where it

presents a serious safety risk.

It is called 'sweet gas' because of its lack of

hydrogen sulfide.

Coalbed methane contains very little heavier

hydrocarbons such as propane or butane, and

no natural gas condensate.

Gas Process Engineering - CGE667

Coal Bed Methane

To extract the gas, a steel-

encased hole is drilled into

the coal seam (1001500
meters below ground).

Reducing reservoir

pressure allow the

adsorbed gas to be
released for production.

Coalbed methane wells

often produce at lower gas

rates than conventional
reservoirs.

Can have large initial costs

Gas Process Engineering - CGE667

Natural Methane Hydrate

Also known as methane clathrate, hydromethane or

methane ice.

A large amount of methane is trapped within a crystal

structure of water, forming a solid similar to ice.

Significant deposits of methane clathrate have been

found under sediments on the ocean floors of earth.

Gas Process Engineering - CGE667

Natural Methane Hydrate

The average composition is 1 mole of methane for every

5.75 moles of water.

The observed density is around 0.9 g/cm3

One litre of methane clathrate solid would therefore

contain, on average, 168 litres of methane gas (at STP).

The sedimentary methane hydrate reservoir probably

contains 210 times the currently known reserves of
conventional natural gas.

Climate scientists hypothesize that methane clathrates

will be released as a result of global warming, which may

cause runaway climate change that cannot be controlled.
Gas Process Engineering - CGE667

Shale Gas

Shale gas is natural gas produced from shale.

Shale has low matrix permeability, so gas
production in commercial quantities requires
fractures to provide permeability.

Some of the gas produced is held in natural

fractures, some in pore spaces, and some is

adsorbed onto the organic material.

The gas in the fractures is produced immediately;

the gas adsorbed onto organic material is

released as the formation pressure is drawn down
by the well.

Gas Process Engineering - CGE667

Tight Gas

Tight gas refers to natural gas in underground

reservoirs with low permeability.

The lack of permeability locks the tight gas up

underground, making it difficult to drill a profitable

well.

A conventional reservoir is essentially a high-tomedium permeability reservoir.

Tight gas reservoirs includes reservoirs with an

average effective gas permeability less than 0.6

mD.
Gas Process Engineering - CGE667

Biogas Alternative to Natural Gas

Biogas is produced by anaerobic digestion or

fermentation of biodegradable materials such as

biomass, manure, sewage, municipal waste,
green waste, plant material and energy crops.

Biogas comprises primarily methane and carbon

dioxide.

Unlike natural gas, biogas is a renewable fuel.

Gas Process Engineering - CGE667

Biogas Alternative to Natural Gas

Gas Process Engineering - CGE667

Natural Gas Utilisation

Energy and Fuels

Natural
Gas

- Electric Power Plant

- Industrial
- Residential &
Commercial
- Vehicle fuel

Chemical
Manufacturing
- Hydrogen
- Sulfur
- Ammonia
- Olefins
(ethylene &
Propylene)
Gas Process Engineering - CGE667

Fertilizers
Nitric Acid
Polymer
s

Raw Gas and Product Slate

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Global Energy Trend

Gas Process Engineering - CGE667

World will still rely on fossil fuels

for decades to comes

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World Power Generation

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Shares of World Primary Energy

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Transportation
Natural Gas

Market

Pipelines
Liquefied Natural Gas (LNG)
Compressed Natural Gas (CNG)
Gas to Solids (GTS)
Gas to Power (GTP)
Gas to Liquids (GTL)
Gas Process Engineering - CGE667

Pipelines

Pipelines are very convenient method of transport but

not flexible.

If the pipeline has to be shut down, the production and

receiving facilities and refinery often also have to be
shut down because gas cannot be readily stored.

Pipeline installation and maintenance are expensive.

Gas Process Engineering - CGE667

Liquefied Natural Gas (LNG)

Effective means of transportation

since mid 1970

LNG is the liquid form of natural

gas.

Gas cooled to -162C liquefies

and has a volume approximately

1/600 of gas at room temp.

Requires complex machinery

with moving parts and special

refrigerated ships to transport to
market.
Gas Process Engineering - CGE667

LNG Versus LPG

Liquefied Petroleum Gas (LPG) is often confused with

LNG and vice versa.

LPG consists mainly of propane (C3H8) and Butane

(C4H10). Primarily used for domestic applications.

LPG is kept liquid by confining it under a high

pressure.

This contrast with LNG which is liquid at atmospheric

pressure but at a very low temperature (approx 162

C).
Gas Process Engineering - CGE667

Compressed Natural Gas (CNG)

Gas can be transported in containers at high pressures.

Typically : 1800 psig for a rich gas
~ 3600 psig for a lean gas.

Natural gas is compressed to less than 1% of the

volume it occupies at STP.

Used in some countries for vehicular transport as an

alternative to conventional fuels.

The filling station can be supplied by pipeline gas, but

the compressors needed to get the gas to 3000 psig
can be expensive to purchase.
Gas Process Engineering - CGE667

Gas to Solid (GTS)

Gas can be transported as a solid with the

solid being gas hydrate.

NGH is the product of mixing natural gas with liquid

water at 80 100 bar and 2 -10 C to form a stable
water crystalline ice-like substance

GTS involves three stages:

production, transportation and regasification.

NGH is believed to be a viable alternative to LNG

or pipelines, but NGH transport is still in the
experimental stage.
Gas Process Engineering - CGE667

Gas to Liquid (GTL)

Converting natural gas into liquid product such as

syncrude, methanol, formaldehyde, ammonia.

Indirect Route
Methane

Syngas (H2 + CO)

Fischer Tropsch
Synthesis using
catalyst

Liquid Product

Direct Route
Methane

Catalyst

Gas Process Engineering - CGE667

Liquid Product

Natural Gas Industry

Exploration

Upstream

Production
Gathering/Processing
Transmission

Midstream

Distribution
Consumers

Gas Process Engineering - CGE667

Downstream

Malaysian Natural Gas Industry

It began with Malaysias first ever oil well, struck on

22 December 1910 in Miri, Sarawak.

In 1965, natural gas began to be supplied to

household and local industries in Miri, Sarawak with

associated gas from the West Lutong oilfield.

Currently, Malaysia exports 23 million tonnes per

annum of gas in the form of LNG to the traditional

markets like Japan, Korea and Taiwan, as well as to
the US and Europe.

The LNG Malaysia supplies to the world is processed

from feed gas from Central Luconia offshore Sarawak

and liquefied at 3 liquefaction plants in Bintulu
Sarawak.

Gas Process Engineering - CGE667

Malaysian Natural Gas Industry

Malaysia gas field also feed a domestic natural gas

transmission pipeline system for power and industrial

use.

Peninsular Gas Utilisation (PGU) network was

established in 1984.

Gas from the fields off the state of Terengganu is

processed and transported through network pipelines

to various parts of the country.

There are six gas processing plants (GPP) in

operation (4 in Kertih and 2 in Paka, Terengganu).

Processed gas is channelled towards the domestic

power sector (69%), non-power sector (25%) and is

also exported to Singapore (6%).
Gas Process Engineering - CGE667

Malaysian Natural Gas Industry

Products from GPP are send through pipelines
to main customers namely;
PRODUCTS

Sales Gas

CUSTOMERS
TNB (Tenaga Nasional Berhad) and
YTL (Yeoh Teo Leong)

Ethane

OPTIMAL, Ethylene and Polyethylene

Propane

OPTIMAL and ET (Export Terminal)

Mixed Butane

MTBE (Methyl Tertiary Ethyl Butyl), PDH

(Propane Dehydro),

Gas Process Engineering - CGE667

Condensate

TCOT (Terengganu Crude Oil Terminal)

Malaysian Natural Gas Industry

Natural Gas Supply Chain in Peninsular
Malaysia

UPSTREAM

TRANSMISSION
Petronas Gas Berhad

PCSB and
PSC contractors

Gas from
offshore

Power
Plants

Gas
Processing
Plant

Gas Process Engineering - CGE667

City
Gate
Station
Petchem
& Large
Industries

DISTRIBUTION

Gas Malaysia Sdn Bhd

Industrial
Commercial

Residential

Malaysian Natural Gas Industry

Gas Process Engineering - CGE667

Malaysian Natural Gas Industry

In Sabah, the biggest consumer of natural gas is

the methanol plant in Labuan. Another major user

is the hot briquette iron plant, also in Labuan.

Trans Thailand-Malaysia (TTM) successfully

commissioned the pipeline carrying the MalaysiaThai Joint Development Area (MTJDA) gas.

TTM, a cross-border gas infrastructures

important steps towards the realisation of TransASEAN Gas Pipeline (TAGP) network.

Gas Process Engineering - CGE667

Malaysian Natural Gas Industry

The TTM pipeline system comprises both

onshore and offshore gas pipelines, including:

A 277 km natural gas pipeline from MTJDA to the

TTM Gas Separation Plant (GSP) in Songkhla,

Thaialand.
A 98 km sales gas pipeline from the TTM-GSP to
the state of Kedah, where it is tied-in with PGU
system at Changlun which supplies customers in
the northern region of Peninsular Malaysia.
A 239 km LPG pipeline from the TTM-GSP to
Petronas Gas Berhads LPG receiving terminal at
Prai Depot 1 in Penang.
Gas Process Engineering - CGE667

Malaysian Natural Gas Industry

Gas Process Engineering - CGE667

Malaysian Natural Gas Industry

Petronas is building LNG regasification facilities

with a capacity of 3.8 million tonnes per annum in

Mukim Sungai Udang, Melaka, which will import
LNG, store it in a Floating Storage Unit (FSU)
and vaporize it at a regasification unit.

Once regasified, the gas will be transmitted into

the Peninsular Gas Utilisation pipeline network

Expected to be commissioned middle of 2012.

The Jetty Regas Unit (JRU) will be constructed
within Sungai Udang Harbour, 3km away from
shore.
Gas Process Engineering - CGE667

Abundant of opportunities in the

natural gas industry are awaiting
for you!

Gas Process Engineering - CGE667