DEVELOPMENT OF A PRACTICAL PROCESS FOR A

NATURAL GAS CALORIFIC VALUE ADJUSTMENT SYSTEM

WITHOUT BLENDING RICH GAS
DEVELOPPEMENT DE PROCEDES CONCRETS POUR LE
SYSTEME DAJUSTEMENT DE LA VALEUR CALORIFIQUE DU
GAZ NATUREL SANS MELANGE DE GAZ RICHES
Hyun Cho
Research Assistant
Subhash N. Shah, Ph.D., P.E.
Stephenson Chair Professor
Jonathan T. Kwan, Ph.D.
Martin Miller Chair Visiting Professor
University of Oklahoma
Norman, OK 73069 U.S.A.
Gyu-Hyuk Lim
General Manager
Korea Gas Corporation
Seongnam, Kyunggi, Republic of Korea

ABSTRACT
Liquefied Natural Gas (LNG) is becoming an increasingly important part of the
world's energy sources. The security of obtaining an LNG source is paramount to the
countries importing LNG from foreign countries. As a result, the general trend is to
import LNG on a long-term basis (15 to 25 years on a take-or-pay basis) from more than
one source. The calorific value of gas varies from source to source. This fluctuation
results in the loss of a large amount of cash flow to suppliers and gas quality to
customers. Currently calorific value adjustment systems have been adopted in order to
supply Natural Gas with constant calorific value. However, the systems are expensive
because of blending rich gas or injecting nitrogen.
This paper presents a practical process to adjust the calorific value of Natural Gas
(NG) without blending rich gas or injecting nitrogen. The proposed process, developed by
computer simulation, uses the column type special separator operating at the specific
equilibrium status with the control of temperature and pressure in order to separate LNG
into high calorific value of LNG stream and low calorific value of vapor gas. The effects
of various parameters affecting both productivity and economics of the process are
discussed and analyzed quantitatively. The simulation performed in this study reveals
optimum operating conditions, which detail the most economical operation of the LNG
satellite system. The proposed process has several advantages over the existing system. It
increases safe operation of the LNG satellite system by eliminating the Liquefied
Petroleum Gas (LPG) facility, which has a different safety regulations, maximizing the
benefits by reducing operation cost, and obtaining high gas quality index for the
customer.

PO-5.1
RESUME
Le gaz naturel liqufi prend une place de plus en plus importante dans les ressources
mondiales en nergie. La garantie dobtenir une ressource en GNL est primordiale
comptenue de la grande importation de GNL des pays trangers vers les pays necessiteux.
Par consequent, la tendance gnrale consiste importer de GNL sur le long terme (15
25 ans sur la base prend-ou-paye) provenant de plus dune source. La valeur calorifique
du gaz varie dune source lautre. Cette fluctuation a pour rsultat la perte dune grande
quantit de cash-flow marge brute dautofinancement pour les touristes et de la qualit
pour les consommateurs les systmes actuels dajustment de la valeur calorifique ont
t adopts dans le but de fournir du gaz naturel valeur calorifique constante.
Cependant, les procds sont onereux en raison de lapport en gazs riches ou de
linjection dazote.
Cet article presente un procd concret pour ajuster la valeur calorifique du gaz
naturel sans avoir le mlanger du gaz riche ou injects dazote. Le procd propos,
dvelopp par simulation sur ordinateur, utilise le type de colonnes dun sparateur
special fonctionnant en statut dquilibre spcifique le contrle de temprature et de
pression afin de sparer le flot de GNL haute valeur calorifique et le gaz naturel liqufi
faible valeur calorifique. Les effets de divers paramtres affectant la fois la
productivit et les conomies lies au procd sont discutes et analyses
quantitativement. A partir de la simulation des donnes accomplies dans cette etude. Les
conditions optimales de fonctionnement et la mthodologie pour les obtenir sont
proposes afin dobtenir des oprations conomiques pour lensemble du systme. Le
procd propos a plusieurs avantages compar a celui existant. Il augmente la scurit
des oprations dans les terminaux recevant du GNL. Par lelimination des quipement du
gaz ptrolier liqufi ayant diffrentes rgles de scurit, il maximise les bnefices par la
rduction des cots de fonctionnement et il permet dobtenir un index de qualit de gaz
lev pour le consommateur.

INTRODUCTION
Liquefied Natural Gas (LNG) is playing an increasingly important role in the worlds
energy sources. Even though LNG contracts are long-term, generally last for 20 years,
and exist on a take-or-pay basis, LNG import sources should be diversified. This is
important concerning the acquisition of secure energy import regardless of the problems
from export countries such as sabotage or unstable political situations. As a result, the
calorific values of LNG imported from different sources are different. Supplying the
constant calorific value of Natural Gas (NG: re-gasified LNG) is important to customers
as well as gas companies. The fluctuation results in the significant loss of cash flow to
gas suppliers and gas supply quality to customers.
The calorific value adjustment systems currently used are classified into two
categories: boosting up calorific value and reducing calorific value1. The features of those
methods are briefly discussed in next section. This paper proposes a process to adjust the
calorific value of NG without blending rich gas or injecting air/nitrogen. The calorific
adjustment system proposed in this paper mainly focuses on being used at the LNG
satellite system. This paper also describes the economical advantages as well as safety
enhancement.

PO-5.2
CONVENTIONAL METHODS
Two categorized methods are currently adopted to supply customers with
standardized gas, which has some allowance of calorific value. The Standardized
Calorific Value (SCV) is used as the basis for consumer gas price. The allowable
fluctuation of the SCV is specified by regulations in most countries. The main objective
of a calorific adjustment system is to protect both interests of the customers and suppliers.
The supply of the constant (actually, not constant, fluctuated within the allowable range)
calorific value of NG (called as SCV) is linked directly with endusers gas quality.
The reduced calorific value adjustment systems are generally used to reduce calorific
value by injecting nitrogen or air into the gas network grid, which contains a high
calorific value of NG. Energy cost in pressurization of nitrogen or air is considerably
high. One of the advanced systems is to pressurize liquid nitrogen produced by the air
separation plant using LNG cold energy.
The other method is to increase calorific value by injecting or blending rich gas
(Liquefied Petroleum Gas - LPG) into a low calorific value of NG. The reasons for this
method are 1) to increase different amount of calorific value within each different source
in order to provide the SCV of NG to customers, and 2) to increase transportation
efficiency. Once pipeline networks have been constructed, it is difficult to re-build or
increase in size especially in a megalopolis. However, gas demand increases with a rising
population and living standard. The viable option in this case is to increase transportation
efficiency by increasing calorific value. The amount of energy transported through
pipelines will then be increased under the same transport conditions (volume and
pressure)
However, the following two points should be taken into consideration; the cost of rich
gas injected into an NG system, and the negative effects on NGs image as a clean energy
compared to LPG. Most LNG supply companies, who compete with LPG in energy
market, advertise that LNG is more clean and safe than LPG. If LPG is blended into NG
to increase calorific value, one of their strategies in advertising will be damaged.

LNG SATELLITE SYSTEM

The primary role of an LNG satellite system (as a peak shaving plant) is to inject NG
on the pipeline nod, where the operational pressure of the pipeline is dropped, due to an
increase in seasonal gas demand after the construction of a pipeline network. The peak
gas demand is generally related to weather conditions. To construct a new gas pipeline or
increase capacity of a rental pipeline in order to meet the peak gas demand is
uneconomical.
Northstar2 analyzed the economic benefits of a satellite systems compared to an
increase in rental capacity of a pipeline. The economics of a peak shaving plant are
typically based upon avoided pipeline demand charges along with a component of
avoided capital cost for some alternative pipeline solution. Pipeline capacity is commonly
purchased for $1,000,000-$4,000,000 per year for each 10,000 dekatherms/day of
capacity. Small LNG peak shaving facilities can typically be constructed for a one time
capital cost of $1,000,000-$4,000,000. The annual carrying costs for these facilities are
derived from ($Financing + $O & M). If a $2,000,000 plant has an annual carrying cost
of $300,000 per year, and it can avoid $1,000,000 per year in demand charges from the
pipeline, then it is easy to understand the economic justification of peak shaving.

PO-5.3
Similarly, to replace or increase in size of the pipeline network requires a huge amount of
investment. Therefore, an economically viable option is to construct LNG satellite
system. Figure 1 shows the typical an LNG satellite system.

PROPOSED PROCESS
Methane and nitrogen has high vapor pressure at low temperature and pressure.
Figure 2 shows the vapor pressure of different liquefied gases3. When temperature
increases, nitrogen and methane are more easily evaporated than ethane and propane.
These evaporated gases are called BOG, which mainly consist of methane. Table 1
presents the typical composition (mole fraction) of LNG and BOG used for simulation in
this study. The calorific value of a certain LNG can be increased by extracting Boil-Off
Gas (BOG). The concentrations of ethane and propane are relatively increased in the rest
of the liquid after BOG extraction. The calorific value of the rest of the liquid, called rich
LNG in this paper, is increased, but the calorific value of BOG is less than the base LNG
calorific value.
The proposed process, developed by computer simulation, uses the column type of a
special separator operating at the specific equilibrium status with the control of
temperature and pressure. LNG will be separated into a low calorific value of vapor
(BOG) and a high calorific value of LNG stream. Figure 3 presents a schematic diagram
of this calorific value adjustment system. The LNG at which calorific value is within 1
8% lower than the SCV can be stored in a pressurized tank or a low pressure tank. This
system is suitable for calorific value adjustment at satellite LNG facilities serving both
the industry consumers and general consumers (for cooking and heating).

Table 1 Gas compositions of each stage

(unit: mole fraction)
Compositions Basic LNG Rich LNG BOG
CH4 89.047 85.056 99.48
C2H6 9.75 13.292 0.492
C3H8 0.607 0.838 0.002
C4H10 0.586 0.81 0.000
N2 0.01 0.004 0.026
Calorific
10,468 10,800 9570
Value(Kcal/Nm3)

PO-5.4
 Pump

Vent Stack
Vaporizer
LPG
LPG Blending

Odorant
Heat
Exchanger
Compressor

Metering
Vaporizer

LNG Gas line

Pump Injection

Fig. 1 Typical schematic diagram of LNG satellite system

LNG is pressurized by intank pumps in case the LNG is stored at the low pressure
storage tank or directly sent through a heat exchanger with the pressurized LNG tank.
The temperature condition of LNG can be adjusted by heat exchanger (HEX 01). The
pressure condition in the separator (SP 01) is also controlled by a PCV 02. The LNG in
the separator (SP 01) will be separated into vapor (mainly consisting of methane) and the
rest of the liquid will be posses the same calorific value of SCV. Any liquefied gas has a
strong tendency to exist in equilibrium status. The operating conditions (pressure and
temperature) of the separator are controlled by the mole fractions of each component in
liquid to meet the SCV.
Once the high calorific value of the LNG stream and vapor are separated from SEP
01, the rich LNG will be stored in a high calorific LNG storage tank. The LNG
compositions and its calorific values are measured by gas chromatography by an in line
system. The calorific value information of rich LNG obtained from gas chromatography
can then be processed in a computer controller. BOG from a high calorific value LNG
storage tank also increases the calorific value of rich LNG. The expected BOG rate, NG
send-out rate, and stored amount of LNG are also required to estimate the impact on the
SCV. The pressure and temperature conditions in the separator (SP-01) have to be
controlled by a computer based on the system operating information. This involves the
calorific value of rich LNG, current gas send-out rate, estimated gas send-out, volume of
stored rich LNG, and the BOG rate from a rich LNG storage tank.

PO-5.5
 100

Vapor Pressure, [Kg/cm2]

10

Nitorgen
Methane
1
Ethane
Propane
i-Butane
n-Butane

0.1
-180 -130 -80 -30 20 70 120 170

Temperature, [oC]

Fig. 2 Vapor gas pressure of liquefied gases3

PCV 02
Industry
consumer
*1 HEX03
General
HEX02 consumer

HEX01 SP01 vaporizer

PCV 01

PCV 03 PCV 04
PP01
TK01
Computer Gas
Controller Chromatagraphy TK02

*1 : P. T. & Level Transmeters

Fig. 3 Calorific adjustment system without blending rich gas

SYSTEM ANALYSIS
System analysis is performed based on inlet LNG composition shown in Table 1. The
target SCV is set as 10,800 Kcal/Nm3. The flow rate is assumed at 100 Kg-mole/hr of
LNG. The detail conditions for the system analysis are presented in Table 2. When 100
kg-mole of LNG goes into a separator, the LNG can be divided into 72.3 kg-moles of

PO-5.6
liquid and 27.7 moles of vapor under the given conditions of equilibrium status , where
12 Kg/cm2 and 115 oC are set for the operating pressure and temperature. The calorific
values of these streams are 10,811 kcal/Nm3 and 9,575 kcal/Nm3, respectively. The low
calorific value gas can be sold to industry consumers because the price for large
consumers or industry consumers are calculated based on both the calorific value and gas
volume used.
The design of the rich LNG storage capacity is beyond this study. It is generally
dependent on companys policy. However, over 3 days of peak-day capacity is the
general recommendation.1 There are two options in the storage of rich LNG. One is to
use a pressurized tank, which is similar to a liquefied nitrogen tank. The advantage of this
type of tank is to reduce the pressurization facilities to inject NG into a gas network grid.
The other option is to use a flat bottom cylindrical tank. Since the operation pressure of
this type of storage tank is almost near to atmospheric pressure, the rich LNG should be
re-cooled down by using the heat exchanger (HEX-01) shown in Figure 2. The
temperature stored in the LNG tank (TK-01) is either saturated under a low pressure or
super-saturated under pressurized condition. The LNG coming from a storage tank (TK-
01) can re-cool down the rich LNG before warming up by the heat exchanger (HEX-02).
The degrees of heating up and pressure conditions are controlled by a computer
controller.
From the practical engineering point of view, a heat exchanger can be constructed
with 2 oC of temperature difference between heat exchange fluids. The temperature can
be re-cooled to 157 oC. The equilibrium pressure at this temperature is about 210 g/cm2.
The operating pressure requires a slightly higher point than the equilibrium conditions.
However, the amount of BOG, due to the flashing phenomenon during reduce in its
operating pressure, should be taken into consideration in this type of storage tank. From
these points of view, it is recommendable to use pressurized storage tanks for the rich
LNG storage. The details to be considered in the design of the satellite system is
described in Reference 1.

Table 2 System analysis conditions

Description Conditions Remarks
LNG flow 100 Kg-mole/hr 1,783 Kg/hr
LNG Temperature -160 oC at TK-01
LNG Pressure 12.5 Kg/cm2 at TK-01
Separator operating
1 12 Kg/cm2 SP-01
pressure
Separator operating
-160 to 115 oC SP-01
temperature

ECONOMIC ANALYSIS
The operation cost of the process developed in this paper is compared to that of rich
gas blending. Operation cost for both cases (the proposed process and LPG blending) and
material cost for rich gas only are compared because the LNG costs for both case can be
eliminated. The target SCV is assumed at 10,800 kcal/Nm3. The total gas handling
volume is assumed as 8,000 ton/yr. In order to compare the economical efficiency of each

PO-5.7
system, the discounted net present value (NPV) concept was used. The following
parameters serve as basis for the NPV calculation.
Operation period: 10 years
Maximum LNG handling volume: 8,000-ton per year
Annual maintenance cost: 2% of construction cost
Electricity cost: 5.6/Kwh
Interest rate: 8 %
LPG price: $70.00/ton
Capital cost and taxes: excluded
The summary of economic analysis is presented in Table 3. The proposed process can
save both material costs (LPG) and operational costs.

Table 3 Economic comparison between the proposed process and LPG

blending system.
(Unit: 1,000 USD)
Items Case I Case II Remarks
Proposed process LPG blending
Construction Cost 1,500 2,000
LPG - 19
Included in pump
Operating cost 120 192
operation
Included in pump
Maintenance cost 40 60
maintenance
NPV 2,659 3,826

CONCLUSIONS
(1) The calorific value adjustment system, using control of equilibrium conditions
without blending rich gas, has been developed for an LNG satellite system to get
high economical advantages.
(2) The process enhances safety in design and operation of an LNG satellite system by
eliminating different safety regulation and standards for rich gas.
(3) The combination of industry gas consumers, who can use low calorific value of
NG, and general consumers boosts the flexibility of system design in this calorific
value adjustment system.
(4) The range of calorific value adjustment system is limited by 1 8 % of SCV with
this process.
(5) This process keeps LNG companies advertising strategies in competitiveness
against LPG companies because of the elimination of blending rich gas.

ACKNOWLEDGMENT
The authors wish to thank Korea Gas Corporation (KOGAS) for providing technical
data and for their permission to publish this work. The authors also express their
appreciation to the Well Construction Technology Center (WCTC) of the Mewbourne

PO-5.8
School of Petroleum and Geological Engineering at the University of Oklahoma for
financial support and encouragement. Special thanks are extended, particularly to D.S.
Kim of KOGAS, for his kind assistance and useful discussion.

REFERENCES CITED
1. Cho, H., and Ahn, K.H.: System Development and Analysis Report internal
document in Korea Gas Corporation, 1987, p. 189-211.

2. Why Should Our Company Consider LNG, Northstar Industries, Methuen,

Massachusetts, Web page http://www.northstarind.com/lngfaqs.html

3. Perry, R.H., Green, D.W., and Maloney, J.O.: Perrys Chemical Engineers
Handbook, Seventh edition, McGraw-Hill, New York, 1997.

PO-5.9