Technology Focus: Natural Gas Processing and Handling (April 2014)
Authors: Wang Xiuli 
Published: February 2015

Technology Focus
In the next 20 years, there will be a large increase in global natural-gas demand, with an average growth rate [forecast by the International Energy Agency (IEA)] of more than 1.8% per year. The top two leading countries in rising gas demand are China (7% per year) and India (4.7% per year).
There is plenty of gas worldwide. In November 2010, the IEA announced that the world’s ultimate gas recovery could be approximately 30,000 Tcf. That is twice the previous estimation from the same source made in 2009. That is primarily because of the success of shale-gas production in North America. Of the 30,000 Tcf of gas, proved gas reserves are slightly more than 6,600 Tcf, and 49% of that is located in Iran (18%), the Russian Federation (17.6%), and Qatar (13.4%).
The US is the largest natural-gas producer and consumer. It produced approximately 24 Tcf and consumed 25.4 Tcf in 2012, while Russia produced much more gas than it consumed (20.9 and 14.7 Tcf, respectively). On the other hand, many countries, such as China, Japan, South Korea, Mexico, the United Kingdom, and Germany, use much more gas than they can produce, and some of them do not produce any. That leads to one of the remaining challenges in natural-gas use: natural-gas processing and handling.
Currently, 68% of the world’s gas is transported by pipeline (primarily on land) and 32% as liquefied natural gas (LNG). The top three LNG exporters are Qatar, Malaysia, and Australia. Because of relatively recent new offshore gas discoveries, Cyprus, Israel, and Mozambique are expected to be new players in the LNG market, along with the United States because of its success in shale gas production. Some of them might consider building floating LNG (FLNG) terminals. To find out the market context for LNG projects that will come to market beyond 2020 and how FLNG could fit in that marketplace, attend the SPE Floating LNG workshop in Perth, Australia, 18–21 May 2014.
Although the countries mentioned most likely will export their gas as LNG, compressed natural gas (CNG) could be an interim solution, especially with the new generation of CNG containers made with composite material. A composite container may have as little as 40% of the weight of a metal container with the same capacity. Composite containers are also stronger than steel containers, with high damage tolerance and fire resistance.
GTL technology can provide liquid fuels for transportation and can also reduce gas volume by a factor of 600 or higher, depending on the final products. Because of the large capital investments involved and the physical size of the process, currently only a small portion of natural gas is converted to liquids through GTL methods.
Recommended additional reading at OnePetro: www.onepetro.org.
IPTC 16495 The Role of Underground Storage in Large Natural-Gas-Production Operation by Merry Hoagie, Santos, et al.
OTC 24205 Stranded-Gas Field Development With Cluster LNG Technology by JungHan Lee, LNG Solutions, et al.
IPTC 16489 An Integrated Model for Selecting the Best Fuel To Develop in the Value Chain of Natural Gas by Ahmad Mousaei, RIPI, et al.