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

Qatar
900 TCF

K.S.A.
263 TCF

UAE
215 TCF

Kuwait
63 TCF

Oman
34 TCF

Bahrain
3.3 TCF

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

Unconventional Natural Gas

Unconventional Sources of gas:

Shale Gas 6622 TCF

Mainly in :
China U.S.A. = = 1275 TCF 862 TCF

Argentina
Mexico South Africa Australia Libya

=
= = = =

774 TCF
681 TCF 485 TCF 396 TCF 290 TCF

Canada

388 TCF

Years of Gas Availability

Proven Reserves:
Conventional Resources = 6610 TCF Unconventional Shale gas = 6622 TCF

TCF
200 150 100 50 0 2012

World Gas Consumption

175

106

2035

Approx. Recoverable :
Conventional Shale Tight Gas CBM = 7763 = 7506 = 6533 = 3885

Total

= 38919

Years of availability = 38919/175 222 years

Why Gas is the preferred fuel ?

Very low GH gas emission compared to coal & oil

FUEL
Gasoline Diesel

H/C Ratio
1.85:1

BUSES (KgCo2 Per Km)

1.3

LPG C3/C4
CNG-C1 H2 Fuel

2.52:1
4:1 --

1.2
1 --

Human Buses

0.75 Kg/day CO2

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

Why Gas is the preferred fuel ?

Low price as compared to oil, other renewable & nuclear

$ / MMBtu

Nov. 2012
($ / MMBtu)

Henry hub USA 3.5

NBP UK 10

Japan LNG 15

Korea LNG 13

WTI Oil 15

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
FSRUS

(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