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Announcements
July 18, 2022

Construction of S. Korea’s largest cold chain logistics center to begin in Songdo in 2022

The gas produced from hydrocarbon deposits typically contains a wide range of hydrocarbon products, which usually includes methane (CH4), ethane (C2H6), propane (C3H8) and butane (C4H10). All these products have wide-ranging boiling points and also different heating values allowing different routes to commercialization and also different uses. The “acidic” elements such as hydrogen sulphide (H2S) and carbon dioxide (CO2), together with oil, mud, water, and mercury, are removed from the gas to deliver a clean sweetened stream of gas. Failure to remove such acidic molecules, mercury, and other impurities could result in damage to the equipment. Corrosion of steel pipes and amalgamization of mercury to aluminum within cryogenic heat exchangers could cause expensive damage.
The gas stream is typically separated into the liquefied petroleum fractions (butane and propane), which can be stored in liquid form at relatively low pressure, and the lighter ethane and methane fractions. These lighter fractions of methane and ethane are then liquefied to make up the bulk of LNG that is shipped.

Natural gas was considered to be economically unimportant wherever gas-producing oil or gas fields were distant from gas pipelines or located in offshore locations where pipelines were not viable. In the past this usually meant that natural gas produced was typically flared, especially since unlike oil no viable method for natural gas storage or transport existed other than pipelines, which required the immediate use by end users of the same gas. This meant that natural gas markets were historically entirely local and any production had to be consumed within the local network.

Developments of production processes, cryogenic storage, and transportation effectively created the tools required to commercialize natural gas into a global market which now competes with other fuels. Furthermore, the development of LNG storage also introduced a reliability in networks which was previously thought impossible. Given that storage of other fuels is relatively easily secured using simple tanks, a supply for several months could be kept in storage. With the advent of large-scale cryogenic storage, it became possible to create long term gas storage reserves. These reserves of liquefied gas could be deployed at a moment’s notice through regasification processes and today are the main means for networks to handle local peak shaving requirements.[1]