lpg trade presentation -final
TRANSCRIPT
7/21/2019 Lpg Trade Presentation -Final
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LPG TRADESUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Mohammad Ghazi Al-Mutairi,Manager Operations
K.S.Sabapathi,Senior Process Engineer
Mina Al-Ahmadi Reiner!, K"P#
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2LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Presentation Ot!ine
LPG GLO"AL OUTLOOK
DOMESTIC CONSUMPTION TRENDS
LPG PROCESSING FACILITIES
FUTURE CRUDE # ASSOCIATED GAS
PRODUCTION
E$PECTED CAPACIT% GROWTH
KUWAIT STRATEG%
CONCLUSION
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3LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Source:Ajey Chandra, Ron Gist, Ken Otto, S. Craig Whitley, Purvin & Gert !nc"P&G# in OG$, %'()*.
WORLD LPG DEMAND & & &
LPG GLO"AL OUTLOOKLPG DEMAND
INCREASE
"% 2'( FROM
2000 TO 20)0
LPG DEMAND
INCREASE
"% 62( FROM
)**+ TO 20)0
FAR EAST # N&AMERICA , +0( DEMAND
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4LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Source:Ajey Chandra, Ron Gist, Ken Otto, S. Craig Whitley, Purvin & Gert !nc"P&G# in OG$, %'()*.
WORLD LPG SUPPL% & & &
LPG GLO"AL OUTLOOKMIDDLE
SUPPL% IS
)+( #
DEMAND IS
LESS THAN
& )0(
7/21/2019 Lpg Trade Presentation -Final
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5LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Source:Ajey Chandra, Ron Gist, Ken Otto, S. Craig Whitley, Purvin & Gert !nc"P&G# in OG$, %'()*.
WORLD LPG TRADE & & &
LPG GLO"AL OUTLOOK
EAST SUE- IS DEMAND IS MORE THAN SUPPL% FROM 2000
7/21/2019 Lpg Trade Presentation -Final
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6LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Pro$ed natural gas reser$es
LPG GLO"AL OUTLOOK
Source : +P Statistical revie
MIDDLE EAST
AND RUSSIA
HA.E /+( TOTAL
RESER.E OF
)0 T& CUM
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7LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
%istribution o pro$ed &natural gas' reser$es
LPG GLO"AL OUTLOOK
Source : +P Statistical revie
MIDDLE EAST
EUROPE AND
RUSSIA
7/21/2019 Lpg Trade Presentation -Final
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8LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
"atural gas production b! area
LPG GLO"AL OUTLOOK
Source : +P Statistical revie
NORTH AMERICA PRODUCTION IS STAGNANT "UT OTHE
REGIONS ARE GROWING
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9LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Ma(or natural gas trade mo$ementsLPG GLO"AL OUTLOOK
Source : +P Statistical revie
7/21/2019 Lpg Trade Presentation -Final
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10LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
I r a n
S a 1 i A
r a 2 i a
U A E
N o r t 3
A 4 e r i
5 a
A 6 r i 5
a K
7 a i t
A s i a
I r a 8
S o t 3
A 4 e r i
5 a
S o 9 i e
t U n i o
n
: a t a r
G!oa! Position ; Gas reser9es
Source: CIA Study
LPG GLO"AL OUTLOOK
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11LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
NATURAL GAS PRO.EN RESER.E "ILLION CU&M
IN ARA" WORLD
Sa1i Araia 6+<<
K7ait )+/2
O4an 2*
Iran 26620
:atar 2+//0
UAE 6006
%e4en </*
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12LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
K7ait Gas Pro15tion
Source: BP Statistical Review of World Energy
%ear
GAS
PRODUCTION
INCREASED
600 TO )200
MMSCFD
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13LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
K7ait is t3e !ea1in= E>?orter o NGLs@
LPG PRODUCTION INCREASES STEADIL%
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14LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
LPG LOCAL SALE
LOCAL CONSUMPTION INCREASES STEADIL%
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15LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
ETHANE A.AILA"ILIT%
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16LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Crrent Pro5essin= Fa5i!ities
GA-/R!0G C/0-/R
+OOS-/R S-A-!O0
PROC/SS!0G 1AC!2!-!/S
/3POR-
LPG PROCESSING FACILITIES
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17LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
K7ait Gas "ooster Station
*00
)000
LPG PROCESSING FACILITIES
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18LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
SEK Gas Net7orLPG PROCESSING FACILITIES
7/21/2019 Lpg Trade Presentation -Final
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19LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
NK Gas Net7or
LPG PROCESSING FACILITIES
GC '4
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20LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
WK Gas Net7or
LPG PROCESSING FACILITIESLPG PROCESSING FACILITIES
GC56
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21LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Pro(ected )eed A$ailabilit! *ith out potential uture *ells
FUTURE CRUDE & ASSOCIATED GAS PRODUCTION
PRODUCTION
)00(
INCREASE
7/21/2019 Lpg Trade Presentation -Final
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22LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Pro(ected )eed A$ailabilit! *ith partial potential uture*ells
FUTURE CRUDE & ASSOCIATED GAS PRODUCTION
PRODUCTION
)+0(
INCREASE
WITH GAS
WELLS
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23LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Pro(ected )eed A$ailabilit! *ith ull potential uture *ells
FUTURE CRUDE & ASSOCIATED GAS PRODUCTION
PRODUCTION
200(
INCREASE
WITH GAS
WELLS
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24LPG TRADE SUMMIT 2006CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
S+AR+EG
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25LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
Epected Gas Related Pro(ects nKu*ait
KUWAITKUWAIT
KNPC
/ETHANE RECO.ER%/<TH GAS TRAIN FRACTIONATION PROBECT/AGRP
KOC
/ENHANCED CRUDE E$PORT FACILITIES/INCREASING OIL FIELD PRODUCTION/ADDITIONAL "OOSTING FACILITIES
S+AR+EG
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26LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
S+AR+EG
• E+0A"E RE#O1ER PRO2E#+
• )O3R+0 GAS +RA" PRO2E#+
Ma(or Gas Pro(ect
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27LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
ERP Pro(ect 4ac5ground and Schedule•ERP PRO2E#+ at K"P# *ill utilize modern cr!ogenicturbo epander technolog! to reco$er 678 Ethane rom
the residue gases &99:; MMS#)%'.
•Ethane product supplied as )eed stoc5 to Oleins-pro(ect o P#-21 compan! or con$erting Ethane to
Eth!lene, Pol!eth!lene < other petrochemical deri$ati$es.
•)EE%=P%P b! M=s )luor 3.K.
•"G> 3nit licensed b! Ortlo=3OP.
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28LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
E>istin= Unit 2 MMSCFD
Ne7 Unit )00 MMSCFD
ADDITIONAL ETHANE WHICH CAN "E PROCESSED IN E$ISTING 20 MMSCFD
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
NGL E>tra5tion Ort!o Re55!e S?!it .a?or
RS. Pro5ess *6( et3ane re5o9er
25oF390 psia
-143oF387 psia
Residue gasto compression
)eed gas rom%eh!dration
)eed to%eethaniser
53%
47%
27%
73%
17.5%
17.6 wt% liq
-107oF392 psia
-38oF
-33o
F
-36oF
-129oF
-148oF
460 psia
670 psia
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
ERP Arrangement = Reliabilit!
•Minimal difeen!e in !ost "etween sin#le tain and two tainoptions•$in#le tain as 2 & 50% t'"o-e&pandes( 2 & 100%demetanises( and !old "o& as appo&imatel) same !ost in "ot!ases• *wo tain s!eme as #eate elia"ilit) d'e sepaation o+ tains
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
"0G2 -RA!0S#
CO7PR/SSOR
-RA!0S
8/98RA-!O0
S9S-/7 -!2!-9 AR/A
<
E+0A"E RE#O1ER P>A"+
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
ERP Schedule
•O$erall Pro(ect Schedule ?7 months.
•Estimated #ost :;; million @
•Epected to be commissioned in ;;BC;;D
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
)O3R+0 GAS +RA"
• +he amount o associated gas in combination *ith+he amount o associated gas in combination *ith
ne* *ells to be drilled, *ill increase and *ill surpassne* *ells to be drilled, *ill increase and *ill surpassthe capacit! o t*o gas trains, and e$entuall! threethe capacit! o t*o gas trains, and e$entuall! threetrains.trains.
• As a conseuence, all a$ailable three +rains *ill As a conseuence, all a$ailable three +rains *illha$e to operated continuousl!, hence the reliabilit!ha$e to operated continuousl!, hence the reliabilit!
*ill drop to approimatel! 698.*ill drop to approimatel! 698.• %uring plant ailures, the gas *ill be dumped%uring plant ailures, the gas *ill be dumped
untreated into the uel gas header, and the ecessuntreated into the uel gas header, and the ecessliuid *ill be burnt, leading both to economic lossesliuid *ill be burnt, leading both to economic losses
and en$ironmental damages.and en$ironmental damages.
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
• Gas and #ondensate Production *ill be moreGas and #ondensate Production *ill be more
than three eisting trains capacit!.than three eisting trains capacit!.
• ncrease in gas production rom %orra and otherncrease in gas production rom %orra and otherields or gas import rom neighboring countries .ields or gas import rom neighboring countries .
• Additional capacit! *ill be used as strategic Additional capacit! *ill be used as strategiccapacit! to process the additional gas as andcapacit! to process the additional gas as and
*hen a$ailable.*hen a$ailable.
)O3R+0 GAS +RA"
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
•
+oda! K"P# processes 9,;; MMS#)%+oda! K"P# processes 9,;; MMS#)%)eed Gas)eed Gas
• )orecasted A$ailable KO# rom eisting)orecasted A$ailable KO# rom eistingield )eed Gas )lo* increases steadil!ield )eed Gas )lo* increases steadil!
• Oshore ield &;9;' *ill add another ?:Oshore ield &;9;' *ill add another ?:MMS#)%MMS#)%
• Eploration o ne* ield is epected to gi$eEploration o ne* ield is epected to gi$e
F;;C9;;; MMS#)%F;;C9;;; MMS#)%
)ourth Gas +rain Pro(ectPro(ect Ob(ecti$es
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
)ourth Gas +rain Pro(ectProcessing Scheme
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
)ourth Gas +rain Pro(ectntegration *ith K"P#
4eneits o >ocating :th Gas +rain at K"P# Reiner!
Eisting Gas Processing nrastructure 4ac5-3p to Eisting Gas Processing )acilities ncreases O$erall A$ailabilit! o Gas Processing )acilities
reduced laring impro$ed economics
ndependent )eed and Product lines pro$ided, and tied intoeisting gas trains lines
3tilities and #ommon Euipment to spare eisting gas trains 3niormities in Operations and Maintenance
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
)ourth Gas +rain Pro(ectSchedule"e* methodolog! *ill be ollo*ed or implementation o thepro(ect.
•t *ill be single tender or )EE% < EP#.
•
t *ill be con$erted as >ump sum based on Open boo5 Estimate&O4E'.
•O$erall Pro(ect Schedule ?D months.
•
Estimated #ost 7F; million @.
•Epected to be commissioned in ;9;C;99.
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
)ith Gas +rain Pro(ect
4ASE% O" #O")RMA+O" O) )3+3REPRO%3#+O", ))+0 GAS +RA" H>> 4EP>A""E%.
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LPG TRADESUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
+han5 !ou
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FUTURE CRUDE & ASSOCIATED GAS PRODUCTION
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LPG TRADE SUMMIT 2006
CHALLENGES AND FUTURE GROWTH
FOR LPG PRODUCTION IN KUWAIT
1apor )orecast
;
F;;
9;;;
9F;;
;;;
F;;
;;6 ;9: ;96 ;: ;6
M M S C F D
capacit! eisting trains & "G>R'
capacit! eisting ? trains &? "G>R'capacit! eisting ? trains I ne* F;F MMS#)% train &: "G>R'KO# orecastKO# orecast I %orra eedKO# orecast I %orra eed I uture :;; MMS#)% gas
: "G>R
"G>R
? "G>R
FUTURE CRUDE & ASSOCIATED GAS PRODUCTION
FUTURE CRUDE & ASSOCIATED GAS PRODUCTION
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LPG TRADE SUMMIT 2006
K"P# >iuid 0andling #apacit!
FUTURE CRUDE & ASSOCIATED GAS PRODUCTION