Institution of Gas Engineers and Managers (IGEM)

Young Persons Paper Competition 2006

Recovery and Utilization of Cold Energy of
Liquefied Natural Gas










Name: Gordon Kar-wai NG

IGEM Membership No.: 145901 (Far East District Section)

Company: The Hong Kong and China Gas Co. Ltd., Hong Kong

Email: gordon.ng@towngas.com


Recovery and Utilization of Cold Energy of Liquefied Natural Gas Gordon Kar-wai NG
2 - 10

Recovery and Utilization of Cold Energy of Liquefied Natural Gas

Gordon Kar-wai NG

ABSTRACT

Liquefied Natural Gas (LNG) is known as green fuel due to its higher energy density and
environmentally friendly advantages. In fact, LNG also has plenty of cold energy which could be
further utilized. Thermodynamic analysis and major applications of the LNG cold energy, such as
power generation cycle, are discussed. With importation of LNG starting in China in mid-2006,
utilization of the cold energy becomes an important measure to energy saving and environmental
benefits and provides feasible business opportunity to the Hong Kong and China Gas Company
Limited (HKCG), which is currently cultivating its gas business in Mainland China.


1. INTRODUCTION

Natural gas is one of the most widely used conventional energy resources. In contrast to other
mineral resources such as coal and crude oils, natural gas has higher calorific heat capacity
and produces much less pollution and it is usually liquefied to LNG for long distance
transportation and storage. Apart from being used for city gas and power generation, LNG
also is a very reliable fuel for ground vehicles, either as direct fuel for engines or as fuel for
fuel cells.

LNG is produced by cryogenic refrigeration of natural gas at about -162
o
C at normal pressure.
In fact, liquefying natural gas is a high energy consumption process, and it is estimated that
producing one ton of LNG consumes about 380kWh
1
of electrical energy. When the LNG is
regasified to an ambient temperature of 20
o
C, a vast temperature differential can yield the
cold energy of 864kJ/kg, which is equivalent to power output of 240kWh per ton of LNG.

With an annual handling capacity of 3.7 million tons, the cold energy that can be available at
the Guangdong LNG receiving terminal is estimated to reach 890 million kWh, which is
about 2% of the annual power consumption of Hong Kong. Considering escalating global
LNG consumption, the potential for practical applications of the LNG cold energy should be
further explored.


1
Sources: National Development and Reform Commission, China & Tokyo Gas Corporation, Japan
Recovery and Utilization of Cold Energy of Liquefied Natural Gas Gordon Kar-wai NG
3 - 10
2. COLD ENERGY OPPORTUNITIES TO HKCG

To position itself as Asias leading clean energy supplier, HKCG has already established
more than 30 joint ventures in major vibrant Chinese cities. In addition, HKCG has also been
keen to seek investment opportunities in different alternative energy projects in this region of
the fastest growing economy. Taking advantage of the nearby Guangdong LNG receiving
terminal and HKCGs equity stake in this project, a detailed analysis of technical feasibility
and economic benefits of the cold energy recovery from imported LNG was conducted. This
paper focuses on my previous feasibility study on technical aspects and applications of
utilizing the cold energy, so as to demonstrate its tremendous potential.


Figure 1: LNG Receiving Terminal in Guangdong, China (under construction)


3. THERMODYNAMIC ANALYSIS OF LNG COLD ENERGY

LNG has the primary state (T
s
, p
s
) at its storage state and goes to the equilibrium state (T
0
, p
0
)
at atmospheric state eventually. The conservation equation of energy changes is as follows:
dh ds T dh q w = =
0 max
(1)
The maximum usable work w
max
stored in the LNG, which is also named as exergy ex, from
the liquefaction process is the integral of Equation (1) from state s to state 0, is written as
) ( ) (
0 0 0
s s T h h ex + =

+ =
0 0
0 0 0
) (
p
p
T
T
S p
S S
p
p
R T
T
q
T T T c

(2)

, where the first two items are function of temperature and the remaining item is function of
pressure.
Recovery and Utilization of Cold Energy of Liquefied Natural Gas Gordon Kar-wai NG
4 - 10
The exergy of the LNG is composed of two parts and written as:
Cold exergy
S
p S p c
T
T
T c T T c ex
0
0 0
ln ) ( + = (3)
Pressure exergy
0
0 0
ln
0
p
p
R T
p
p
R T ex
S
p
p
p
S
= =

(4)

Ambient temperature T
0
and system pressure p
S
are the major factors affecting the
characteristics of the cold exergy ex
c
and pressure exergy ex
p
of LNG, which will also
determine the applications of the LNG cold energy.


4. APPLICATIONS OF COLD ENERGY

In the past, most of the LNG has been regasified by thermal energy of seawater, releasing its
vast cold energy without any useful effect. Apart from energy saving, the cold energy indeed
can be harnessed in several ways by integrating LNG vaporization process for lower capital
and operating costs. (Table 1)

Application Country
Power Generation Japan
Power Generation Installed Capacity: 21,000kW
Air Separation Japan
Products: Liquefied Nitrogen, Oxygen and Argon
Refrigeration &
Cold Storage
Japan & South Korea
Inlet Air Cooling for Gas
Turbine Power Generation
India, Japan & Spain
Production of Dry Ice Japan
Production capacity in Senboku LNG Terminal: 3.3 ton/yr
Seawater Desalination United States
Reliquefaction of Boiled-off
Gas (BOG) from LNG tank
Japan & South Korea
Cryogenic Pulverization of
Plastics and Wastes
Japan
Crushing handling capacity: 7,000 ton/yr
Sources: National Development and Reform Commission, China & Osaka Gas Corporation, Japan
Table 1: World-wide utilization of LNG cold energy
Recovery and Utilization of Cold Energy of Liquefied Natural Gas Gordon Kar-wai NG
5 - 10
The development of cold energy utilization happens progressively so as to allow several
disparate businesses to grow naturally. As a major LNG importer, serving as destination for
about half the LNG exported worldwide, Japan has pioneered utilizing the cold energy since
the 1980s. The amount of LNG used for its cold energy utilization was 12.1 million tons in
2000, representing efficient usage of 22% of the LNG handled in that fiscal year.
2



5. COLD ENERGY to POWER

Cryogenic power generation is a major cold energy application due to its significant
economical value. It allows waste energy stored to be converted into electricity, which is
much more efficient than the traditional way of electricity generation through combustion.

The mechanisms being used for power generation are Direct Expansion Cycle and Rankine
Power Cycle, and there is also a combined system that adopts both mechanisms, named as
Combined Power Cycle.

Under the Direct Expansion Cycle (Figure 2), LNG from the tank is first pressurized by
send-out pump so as to enhance the cold energy stored, based on the principle of pressure
exergy ex
p
. High pressure natural gas is then produced after further heating and vaporizing in
heat exchanger. After expanding in the turbine, where power is generated, its pressure
decreases to the gas-supplying pressure.





Figure 2: The schematic diagram of Direct Expansion Cycle (left) and Rankine Power Cycle (right)


2
Sources: Osaka Gas Corporation & Tokyo Gas Corporation, Japan
LNG Tank
Send-Out
Pump

Heat Source
Generator
Turbine
Heat Exchanger
Heat Exchanger
Heat Source
Natural Gas
Supplying
System

Heat Source
Evaporator
Turbine
Generator
LNG Tank Send-Out
Pump

Vaporized
Natural Gas

Condenser
Pump

Working medium in Rankine Power Cycle: Propane
Recovery and Utilization of Cold Energy of Liquefied Natural Gas Gordon Kar-wai NG
6 - 10
Rankine Power Cycle (Figure 2), which is driven by the temperature difference between heat
source and LNG, generates electricity based on the principle of the cold exergy ex
c
. The cycle
adopts a coolant, such as propane, as working medium. Liquid propane is first pumped into
the evaporator and gasifies to high pressure and temperature vapour by the heat source. The
high pressure propane vapour then expands in the turbine and drives the generator for power
generation. LNG flowing adversely in the condenser releases the cold energy to condense the
propane vapour to saturated state.

The Combined Power Cycle (Figure 3) consists of two power generating mechanisms, in
which the left part is the Rankine Power Cycle and the right part is the Direct Expansion
Cycle. The power cycle simply adopts the Direct Expansion Cycle by condensing the coolant
with the cold energy, and then utilizes the Rankine Power Cycle simultaneously.

Besides, since Combined Power Cycle can effectively recover the cold exergy ex
c
and
pressure exergy ex
p
of the LNG simultaneously, higher efficiency for cold energy recovery
can be attained. It can also utilize the LNG economically by producing higher power
generation capacity, while the sole Direct Expansion Cycle can only produce half of it
3
.





Figure 3: The schematic diagram of Combined Power Cycle




3
Source: Senboku LNG Terminal (Phase I & II) of Osaka Gas Corporation, Japan
Evaporator
LNG Tank
Send-Out
Pump

Pump

Condenser
Turbine
Generator
Generator
Turbine
Heat
Source

Heat
Source

Natural Gas
Supplying
System

Heat Source

Recovery and Utilization of Cold Energy of Liquefied Natural Gas Gordon Kar-wai NG
7 - 10
6. OBSERVATIONS

In the Rankine and Combined Power Cycle, it can be seen that lowering condensing
temperature results in greater temperature difference between the heat source (T
b
) and cold
source (T
c
) in the Rankine Power Cycle, which results in increasing of net work output, and
hence higher thermal efficiency of the power cycle, net work output per heat provided by the
heat source, is improved accordingly.

Besides, since the cryogenic power generation system only involves compact and low cost
equipment such as vaporizer and condenser, it is economically attractive. The operating cost
is also negligible as sea water can be used as heat source in the power cycle.

Though great merits are realized from the LNG cold energy utilization, certain challenges
may inhibit wider use of this alternative energy source, such as different consumption patterns
between the LNG and its cold energy usage, high transportation costs incurred for distant cold
energy application, as well as development of better cold energy storage technologies.


7. EMERGING COLD ENERGY MARKET IN CHINA

In response to energy conservation, as well as national-wide fuel shortage, cold energy
extracted from groundwater and coastal seawater have already been actively utilized by the
Chinese municipal administrations since the 1990s (Figure 4). However, due to insignificant
temperature differential (i.e. about 15
o
C), underground chilled groundwater system can only
be sufficient for handling small district cooling load.

With enviable economic strength, rapid industrial development, and national commitment to
promote cleaner fuel, there is a strong advocate of the use of natural gas and ten LNG
receiving terminals are going to be built along its entire sea coast within the next decade.
(Table 2) Imported LNG will definitely provide an enormous potential for making use of this
alternative green energy in China.


Recovery and Utilization of Cold Energy of Liquefied Natural Gas Gordon Kar-wai NG
8 - 10

Sources: Tsinghua University & Nanjing University of Technology, China
Figure 4: Utilization of Groundwater & Coastal Seawater Chilling System and LNG Receiving
Terminals (under construction) in China



Province/
Municipality
Location Operation
Capacity
(Mt/year)
Status
Liaoning Dalian After 2010 4.0
Full Feasibility Study
Bidding for FEED
Hebei Tangshan After 2010 3.0 Full Feasibility Study
Shangdong Qingdao After 2010 3.3 Full Feasibility Study
Jiangsu Rudong After 2010 3.5
Full Feasibility Study
Bidding for FEED
Shanghai Yangshan Around 2011 3.0 Full Feasibility Study
Fujian Putian 2009 2.6 Under construction
Zhejiang Ningbo Around 2010 3.0 Full Feasibility Study
Shenzhen 2006 3.7 Under construction
Guangdong
Zhuhai - 3.0 Pre-feasibility Study
Source: Asian Oil & Gas Journal (Jan / Feb 2006)
Table 2: Coastal LNG receiving terminal sites in China
District Groundwater
Chilling System
District Coastal Seawater
Chilling System
LNG Receiving Terminal
(under construction)
Q Qi in ng gd da ao o

B Be ei ij ji in ng g
D Da al li ia an n
H Ha an ng gz zh ho ou u
G Gu ua an ng gz zh ho ou u
N Na an nj ji in ng g
T Ti ia an nj ji in n
S Sh ha an ng gh ha ai i
F Fu uj ji ia an n
Recovery and Utilization of Cold Energy of Liquefied Natural Gas Gordon Kar-wai NG
9 - 10
In view of commissioning of the first LNG receiving terminal, China's top economic planning
agency, the National Development and Reform Commission, has recently embarked on the
studies and promotion of utilization aspects of the cold energy from the imported LNG
4
. This
in turn will stimulate wider usage of cold energy this as part of its efforts to better improve the
environment and energy saving for this worlds emerging economic superpower.


8. CONCLUSION

This paper demonstrates various applications of the LNG cold energy recovery. Cryogenic
power generation obviously has substantial savings in both installation and operating costs
when compared with conventional coal-fired power generation. It is proven that cold energy
utilization not only recovers useful chilled energy from the LNG regasification process,
lowers power-cuts risks and the accompanying financial losses, and also helps to reduce
greenhouse gas emission and conserve natural resources.

With soaring global natural gas consumption in next two decades, the economic potential of
utilizing the LNG cold energy is believed to become more and more significant. This is
therefore a huge potential market and its development is likely to be a profitable one which
HKCG and its joint venture partners in China must vigorously pursue.



4
Source: Potential Utilization of LNG Cold Energy in China (28-12-2005), National Development and Reform
Commission, China
Recovery and Utilization of Cold Energy of Liquefied Natural Gas Gordon Kar-wai NG
10 - 10
NOMENCLATURE

c = Specific Heat (kJ kg
-1
K
-1
)
ex = Specific Exergy (kJ kg
-1
)
h = Specific Enthalpy (kJ kg
-1
)
P = Pressure (Pa)
q = Heat (kJ kg
-1
)
R = Gas Constant (kJ kg
-1
K
-1
)
s = Specific Entropy (kJ kg
-1
K
-1
)
t = Time (s)
T = Temperature (K)
v = Specific Volume (m
-1
kg
-1
)
w = Specific Work (kJ kg
-1
)



REFERENCE

Bisio G. 1995 - Thermodynamic analysis of the use of pressure exergy of natural gas
Kenneth W. 1989 - Thermodynamics. McGraw-Hill Book Company: New York.
Kim TS, Ro ST. 2000 - Power augmentation of combined cycle power plants using cold energy
of liquefied natural gas.
National Development and Reform Commission, China - Potential Utilization of LNG Cold
Energy in China (28-12-2005), (Website: http://nyj.ndrc.gov.cn/dcyyj/t20051228_55045.htm)
Osaka Gas Corporation, Japan - Environmental Report 2004