GAS GOLDEN AGE

Q: Are we entering the Gas Golden Age ?

CONTENTS

History of Natural Gas

Natural Gas Geology

Gas Reserves (Conventional & Non Conventional)

Preference of Natural Gas over other energy sources

Gas Resources base

Gas conversion GTX

Conclusion

History of Natural Gas

More than 2500 years ago Chinese use bamboo shoots to transport gas. The gas was used to boil sea water and making it drinkable

In 1785 Britain produced Gas from Coal and used to light the houses

In 1859 first well was dug by Americans (69 Foot) in Pennsylvania PA.

Other Unconventional Gas

Shale Gas Shale Gas is a natural gas found in Shale rocks with

very low permeability. Vertical followed by horizontal

drilling & fracking is done to be able to produce

feasible quantities.

Coal bed Methane Coal Bed Methane is methane absorbed into the solid Matrix of the coal.

It is mainly C1 with no Condensate. Gas contains traces of N2 & Co2 .

Tight sand Gas Dry gas normally present in low permeability sand stones, fracture is

also required to produce feasible volumes.

World Proven & Recoverable Gas

Natural Gas Reserves (Associated & Non Associated)

(Conventional Natural Gas)

World Proven Gas : 6610 TCF

Total G.C.C. = 1478.3 TCF (22% of world reserve)

Qatar

K.S.A. UAE Kuwait Oman Bahrain

900 TCF 263 TCF 215 TCF 63 TCF 34 TCF

3.3 TCF

Unconventional Natural Gas Unconventional Sources of gas:

Shale Gas ≈ 6622 TCF Mainly in :

China = 1275 TCF

U.S.A. = 862 TCF

Argentina = 774 TCF

Mexico = 681 TCF

South Africa = 485 TCF

Australia = 396 TCF

Libya = 290 TCF

Canada = 388 TCF

Years of Gas Availability Proven Reserves:

Conventional Resources = 6610 TCF Unconventional Shale gas = 6622 TCF

Approx. Recoverable :

Conventional = 7763 Shale = 7506 Tight Gas = 6533 CBM = 3885

Total = 38919

Years of availability = 38919/175 ≈ 222 years

0

50

100

150

200

2012 2035

175

106

World Gas Consumption TCF

Why Gas is the preferred fuel ?

Very low GH gas emission compared to coal & oil

Human 0.75 Kg/day CO2

Buses 300 Kg/day CO2 (Depending on distance)

Using Gas will avoid the limits of going beyond 20C global warming set by U.N. by 2020

FUEL

H/C Ratio

BUSES

(KgCo2 Per

Km)

Gasoline Diesel 1.85:1 1.3

LPG C3/C4 2.52:1 1.2

CNG-C1 4:1 1

H2 Fuel -- --

Why Gas is the preferred fuel ?

Low price as compared to oil, other renewable & nuclear

$ / M

MB

tu

Henry hub USA

NBP UK

Japan LNG

Korea LNG

WTI Oil

3.5 10 15 13 15

Nov. 2012 ($ / MMBtu)

Why Gas is the preferred fuel ?

Gas resources base Globally is vast & widely dispersed geographically

Modern technologies facilitates global gas trade between

producers & consumers

Pipelines

LPG

CNG

LNG

LNG industry embraced modern technologies & innovations

Scale up of LNG Trains (7.8 MMTA)

FLNG : mainly to enable offshore development

Large LNG Carriers 10000 M3 in 1959 Q-max (266000 M3)

Total Ships ≈ 360 Ships

FSRU’S (No need for re-gasification plant) – flexibility of suppliers

Gas Conversion – GTX

GTL Gas can be converted to several products:

H2O + CH4 → CO + 3H2

nCO + (2n+1)H2 → CnH(2n+2) + nH2O

1.6 bc F/D → 140 mBbLs/day of GTL product shell

0.5 bc F/D → 34 mBbLs/day (Oryx GTL product) SASOL

Gas Petrochemical & Derivatives - GTP Gas can be transformed to Petro chemical & derivatives

Methane → methanol

Ethane → ethylene → polyethylene

Propane → propylene → polypropylene

Butane → butadiene→ polybutadiene

Gas to Wire - GTW

Gas to wire is to build power stations nearby gas

production facilities & then lay high voltage cables to

the electricity high consumption areas.

Gas bi-products :

Sulphur Helium

Challenges & Golden rules for the Gas Golden age

Research & innovation

New Technology & prototyping

Environmental Protection & Flare mitigation, CO2 injection

High capital expenditure & investment

Social Support & Transparency with communities

Skilled Manpower

Conclusion

Gas is available for long term supplies

Gas is one of the cheapest fuel compared to other energy sources

Gas provides the cleanest energy compared to other fossil fuels

Availability & transportation is spread and flexible globally

We are sure that we have already started the GAS GOLDEN AGE..

Thank you Q & A