Compressor Tech2 - July 2022

54 Pages·2022·18 MB·English

CO COMPRESSION PARTNERS IN TRAINING COMPONENTS
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JULY 2022 www.compressortech2.com
Energy transition
Investors surge into hydrogen
CORNERSTONES OF
COMPRESSION
THE LEROI COMPANY
EURO GAS REPORT
RUSSIA TRIMS GAS TO EUROPE
STRONG PARTNERSHIP
WORLDWIDE
TO SERVE

CUSTOMERS
Burckhardt Compression AG KB Delta Inc.
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www.burckhardtcompression.com www.kbdelta.com
FROM THE EDITOR
KEEFE BORDEN
EDITORIAL Time for frank C
Vice President Editorial
Michael J. Brezonick
[email protected]
T: [phone] talk about energy
C: [phone]
Editor
Keefe Borden O
[email protected]
Jack Burke T
hat the world is constantly evolving and changing has been
[email protected]
a cliché for as long as there have been cliches. However, what
PRODUCTION
might be new is the pace at which things are evolving. More
Creative & Events Director
Saara Rootes specifically, the world’s energy suppliers are steadily moving away from
M
[email protected]
hydrocarbons as a primary source of energy.
Print Production Manager - KHL Americas
Brenda Burbach The pace at which established oil and gas companies (and any
[email protected]
number of new players) are announcing new investments in non-
Production Manager - KHL Global
Charlotte Kemp fossil fuel forms of energy is staggering. It seems that a new project is
[email protected]
announced almost daily.
Production Administration Assistant
Samantha Head At the moment, the strongest new energy candidate is hydrogen,
[email protected] M
a smaller and lighter molecule than natural gas. It poses a few
Group Design Manager
Jeff Gilbert technical challenges, although most energy professionals who build
Group Designer
Jade Hudson infrastructure for energy (including gas compressors) seem to think H2
is a feasible alternative to larger hydrocarbons. You can read about that
CIRCULATION
Subscriptions [email protected] elsewhere in this issue.
Head of Data and Audience Development The challenge, they say, is to build the new infrastructure to scale
James Taylor
Audience Development Deputy Manager or adapt the current system of compressors, pipelines, etc., to thEe
Anna Philo new molecule (or both.) In this issue, we’re taking a look at the energy
[email protected]
transition and the industry’s efforts to find new ways of powering our
SALES
factories, heating our homes and providing reliable transportation.
Vice President, Global Sales
Alister Williams The oil and gas industry has used some version of carbon capturNe
T: [phone] and sequestration for nearly half a century. However, with the strong
C: [phone]
[email protected] drive to decarbonize the energy sector, it is also drawing an increasing
Regional Sales Managers number of new investments. New projects seem to be announced
Gabriele Dinsel
[phone] every week and the trend is for larger projects.
[email protected] The energy industry has never committed more than it has nowT
Petra Kaiser
[phone] to a diverse range of energy products and a long-term reduction in
[email protected] hydrocarbons and in greenhouse gas emissions. Sadly, those efforts
Roberta Prandi
[phone] are not generally recognized by most of the world’s population.
[email protected] To many people, the energy industry is a stodgy representation
Josh Kunz
[phone] of 19th century technology and attitudes. This is despite
[email protected] the industry’s clear commitment to new technologies
Thomas Kavooras
[phone] and infrastructure designed to provide ample supplies of
[email protected] clean energy. To call those attitudes “unfortunate” is an
Daniel Brindley
[phone] understatement.
[email protected]
It’s in this context that Chevron CEO Mike Worth wrote an
Chief Executive Officer open letter to U.S. President Joe Biden and called for an “honest
James King
dialogue on how to best balance energy, economic, and
Chief Financial Officer
Paul Baker environmental objectives.” Honest and open dialogue is itself
Chief Operating Officer
a rare commodity these days -- but it’s something we
Trevor Pease
clearly need.
© Copyright KHL Group, 2022
KHL GROUP AMERICAS LLC Keefe Borden
14269 N 87th St. Ste. 205 Editor
Scottsdale, AZ 85260.
[email protected] [email protected]
REDUCE LEAKAGE
MINIMIZE DOWNTIME
UNDER ANY
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Advanced Packing Ring Designs and Materials
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CCCCOO RRiinngg DDeessiiggnnss AAdd -- CCTT22 -- 002200882211..iinndddd 11 22//88//2211 1100::3311 AAMM
INSIDE
JUNE 2022
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COMPRESSORTECH2 (ISSN 1085-2468) Volume 27,
No. 6 – Published 10 issues/year (January-February,
March, April, May, June, July, August-September, NNN
October, November, December) by KHL Group 32
Americas LLC, 3726 East Ember Glow Way, Phoenix,
AZ 85050, USA. Subscription rates are $85.00 per
year/$10.00 per copy worldwide. Periodicals postage
paid at Waukesha, WI 53186 and at additional mailing
offices. Copyright © 2022 KHL Group Americas LLC. ENERGY DEPARTMENTS
All Rights Reserved. Materials protected by U.S. and TRANSITION TTT
international copyright laws and treaties. Unauthorized 3 E ditor’s comment:
duplication and publication is expressly prohibited. 28 Investors turn to hydrogen A frank talk about energy
Printed in the USA.
6 Industry News:
CO COMPRESSION
Canadian Publication Mail Agreement # 40035419. 2 New gas export
Return Undeliverable Canadian Addresses to: 32 C arbon capture pipelines approved SSS
P.O. Box 456, Niagara Falls, ON L2E 6V2, Canada.
Email: [email protected]. gains traction 8 G as Lines:
POSTMASTER: Send address changes to: Gas production climbs
Circulation Man ager, COMPRESSORTECH2, PARTNERS
11 Company News:
14269 N 87th St. Ste. 205 Scottsdale, AZ 85260 USA. IN TRAINING
Burckhardt order
www.compressortech2.com
36 V R as a training tool intake climbs
Follow @COMPRESSORTECH2 on: 23 16 MReovneitrosirningg T Gruomvepr-nemrae rnutle: A KHL Group publicationCREON2 ECWOEMDP IRNETSERSEIOSTN PVRA RHTENADESREST ISN TRAINING CZAOHMRPOOONF’ESN NTESW VALVE OUT
JULY 2022 www.compressortech2.com S
18 Shale Play-By-Play:
I
D
Williams to expand
E
Transco capacity
23 Euro Gas Report: Energy transition
Investors surge into hydrogen
Gazprom cuts Nord CTOHER CNLEOERRMOSPI TCROOENMSESPSAI ONONYF
Stream supplies ERUUSRSOI AG TARSIM RSE PGOARS TTO EUROPE
MEMBER OF: 28
42 T ech Corner:
VFD analysis, Part 4
47 Events and Meetings Interest in
49 Cornerstones of hydrogen projects
Compression: surges
The LeROI Company PHOTO: ADOBE STOCK
JULY 2022 | COMPRESSORTECH2 | 5
INDUSTRY
NEWS
FERC approves three
key gas export pipelines
T
he U.S. Federal Energy Regulatory
SELECT NATURAL GAS PIPELINE PROJECTS
Commission recently approved three
major natural gas pipeline projects Source: EIA
that will boost the country’s ability to export
additional LNG by a combined capacity of
nearly 1.8 Bcf/d.
The first and largest pipeline, the
Evangeline Pass Expansion Project, is a
1.1 Bcf/d pipeline owned by Tennessee
Gas Pipeline Company, a division of Kinder
Morgan. The project includes 13.1 miles of
new pipeline and two new compressor
stations that will deliver natural gas to
the proposed Plaquemines LNG Project in
Plaquemines Parish, Louisiana.
New compressor station
Tennessee Gas will construct and operate compressor station along its existing of the project to be $261 million.
9.1 miles of 36-inch diameter pipeline loop 500 Line system in St. Bernard Parish, The second pipeline, the Alberta Xpress
along its existing 24-inch Yscloskey Toca Louisiana. The station will include a single Project is a 0.165 Bcf/d line owned and
Lateral in St. Bernard Parish, Louisiana. It will 23,470 hp natural gas-fired Solar Titan managed by ANR Pipeline Company, a
also build about 4 miles of 36-inch loop along 130 turbine unit and auxiliary facilities. division of TC Energy. The new pipeline will
its existing 36-inch-diameter 500-2 Line in Tennessee Gas will also replace two use capacity from the Great Lakes Gas
Plaquemines Parish, the Grand Bayou Loop, 10,410 hp compressor units at its existing Transmission system and the ANR pipeline
the FERC reported. Compressor Station 527 in Plaquemines and will add a new compressor station in
Tennessee Gas will also construct a new Parish. Tennessee Gas estimates the cost Evangeline Parish, Louisiana. The project will
U.S. gas prices
MONTHLY HENRY HUB NATURAL GAS SPOT PRICE (JAN.2018-DEC.2023)
DOLLARS PER MILLION BRITISH THERMAL UNITS
expected to climb
The spot price for natural gas at Henry Hub is
expected to average $8.69/MMBtu in 3Q22,
up from an average of $8.13/MMBtu in May,
according to the latest forecast from the U.S.
Energy Information Administration.
Three factors are causing the increase in
gas prices: low inventories, steady demand
for LNG exports from the U.S. and ongoing
demand from power producers in the U.S.
Source: EIA who want to switch from coal. Looking
further forward, the EIA said it expected spot
6 | COMPRESSORTECH2 | JULY 2022
INDUSTRY
NEWS
boost capacity from the GLGT receipt point MONTHLY U.S. LIQUEFIED NATURAL GAS EXPORTS BY DESTINATION REGION
(JAN. 2020-APR.2022) BILLION CUBIC FEET PER DAY
at the Minnesota-Manitoba border to delivery
points in the U.S. Midwest and the U.S. gulf
Coast. It will boost available capacity for LNG
export facilities in the region and will improve
domestic gas infrastructure in those regions.
ANR will construct a new compressor
station in Evangeline Parish, Louisiana, the
Turkey Creek Compressor Station, which
will have one 15,900 horsepower gas-fired
turbine compressor unit, three inlet filter
separators, suction and discharge piping, the
FERC reported.
Source: EIA
Extra export capacity to Baja
ANR will also make minor modifications at
U.S. LNG exports climb in early 2022
one of two existing mainline valves (MLV 2 or
MLV 3) in Evangeline Parish to enable gas to
be purged from the Southeast Mainline 501 U.S. LNG exports hit a record in 2021 and surged again in the first four months of the year. In
pipelines in conjunction with construction of addition, a growing proportion of those exports have shifted away from Asia and to Europe,
the new compressor station. The project is according to a recent report from the U.S. Energy Information Administration.
expected to cost around $81.1 million. During the first four months of 2021, the U.S. sent about 34% of its LNG to Europe.
The third pipeline project will add 0.5 Bcf/d That percentage rose to 74% in the first four months of 2022. In 2020 and 2021, Asia had
in export capacity to the Energia Costa Azul accounted for nearly half of U.S. LNG exports.
LNG Export Project in Baja California, Mexico. U.S. LNG exports averaged 11.5 billion cubic feet per day (Bcf/d) during the first four
The North Baja Xpress Project from TC Energy months of 2022, up 18% increase compared with the 2021 annual average. The increase in
will modify existing facilities and compressor U.S. LNG exports was driven by additional export capacity at Sabine Pass, which added Train
stations along its 86-mil North Baja Pipeline. 6, and and Calcasieu Pass, whose first five blocks came online this year, the EIA reported.
The FERC gave conditional approval to the In November, the Federal Energy Regulatory Commission (FERC) authorized Venture
project, which is in La Paz County, Arizona Global Calcasieu Pass, LLC, (Venture Global)—the developer of the Calcasieu Pass liquefied
and Imperial County, California. The permit natural gas (LNG) export terminal—to commission the first six of nine liquefaction trains. The
enables TC Energy to deliver natural gas from first authorization was one of the initial steps toward full commercial service.
West Texas and the Rocky Mountains to
markets in the western U.S. and Mexico. CT2 European demand for gas remains unusually strong
Calcasieu Pass is a 1.3 Bcf/d liquefaction facility located in Cameron Parish, Louisiana. Similar
to nearby LNG terminals Sabine Pass and Cameron, Calcasieu Pass will export LNG through
prices at Henry Hub to average $4.74/MMBtu the Calcasieu Ship Channel located on the Gulf of Mexico. Calcasieu Pass is the seventh U.S.
in 2023 as gas production starts to catch up LNG liquefaction export facility to begin producing LNG since 2016.
with the demand. In addition, demand for gas in Europe has been unusually strong. Since December, the
In its latest Short Term Energy Outlook, European Union (EU) and the United Kingdom have been importing record-high levels of LNG,
the EIA reported U.S. natural gas inventories in part because of low natural gas storage inventories in the region. High spot natural gas
ended May at 2.0 trillion cubic feet (Tcf), prices at the European trading hubs gave incentives to global LNG exporters with destination
about 15% below the five-year average. flexibility in their contracts to deliver more LNG supplies to Europe. The growth of LNG imports
Natural gas inventories are expected to end in Europe and a mild winter offset lower natural gas pipeline imports from Russia, the EIA
October (the end of the injection season), reported.
at just above 3.3 Tcf, about 9% below the The United States became the largest LNG supplier to the European Union and United
five-year average. U.S. LNG exports should Kingdom in 2021, accounting for 26% of total imports. In the first four months of 2022, LNG
average 11.7 Bcf/d in 2Q22 and 3Q22 and 11.9 imports from the United States to the EU and the United Kingdom have more than tripled,
Bcf/d for all of 2022, up 22% from 2021. The compared with 2021, averaging 7.3 Bcf/d and accounting for 49% of total imports, according
increase in exports stems from additional to data from the International Association for Natural Gas, CEDIGAZ. As U.S. gas exports to
U.S. LNG export capacity. Europe climbed in early 2022, shipments to Asia fell by half in the same time period.
JULY 2022 | COMPRESSORTECH2 | 7
GAS LINES
NATURAL GAS PRODUCTION
U.S. gas production climbs
for 12th consecutive month
D
ry natural gas production in March about 19.1 Bcf/d, up 4.2% from a year ago. The shutdown is expected to cut U.S. LNG
reached 95 Bcf/d, 2.9% higher than Commercial deliveries of gas were 12.5 export capacity by about2 Bcf/d, or 17% of
the previous year and the second- Bcf/d, up 9% from one year earlier. Industrial the coutry’s total capacity.
highest level for the month since 1973, when deliveries 24.1 Bcf/d, up 7.2%, the EIA A preliminary survey suggests the fire
the U.S. Energy Information Administration reported. was caused by excess pressure in an
began tracking natural gas production data. Net exports (exports minus imports) were LNG transfer line that moves gas from the
The total for March, which was released 12.2 Bcf/d in March, the highest since the facility’s storage tank to the dock facilities
recently in the agency’s monthly overview, agency began tracking imports and exports at the terminal. The fire did not affect the
was the 12th consecutive month that in 1973. Net exports included total exports liquefaction trains, LNG storage tanks,
production had increased from the prior year. of 20.6 Bcf/d and total imports of 8.4 Bcf/d. dock facilities and LNG process areas, the
Gross withdrawals reached 116.6 Bcf/d, Exports of LNG were 13.4% higher than one company said.
up 3.8% from one year ago. Estimated year earlier. Most of those exports were from The terminal is not expected to come
consumption for the month was 89.2 Bcf/d, LNG terminals, which sent 11.7 Bcf/d of LNG to back into full service until late 2022,
up 5.7% from the previous year. All four 28 countries. although the operator is hoping for a partial
sectors of consumers reported an increase resumption in about 90 days.
in demand from the previous year. The Fire at export terminal The Freeport LNG terminal is one of seven
largest component, electric power deliveries, As U.S. gas production and LNG exports U.S. export facilities in operation in the U.S.
reached 25.3 Bcf/d, up 4.1% from a year continue to climb, a fire at the Freeport LNG The facility has three trains in operation, with
earlier. natural gas liquefaction plant in South Texas a combined baseload capacity of 1.98 Bcf/d
Residential deliveries, consumed has caused a full shutdown of the facility. and a peak capacity of 2.14 Bcf/d. CT2
BAKER HUGHES RIG COUNT US NATURAL GAS STORAGE (Bcf)
Source: Baker Hughes Source: EIA
1400 5000
1200
4000
1000
800 3000
600 2000
400
1000
200
0 0
May-20 May-21 May-22 January December
North America International 2022 Five-Year High Five-Year Low
HENRY HUB NATURAL GAS SPOT PRICE (US$/MMBtu) BRENT CRUDE OIL PRICE (US$/Barrel)
Source: EIA Source: EIA
$9.00 $130.00
$8.00 $120.00
$110.00
$7.00
$100.00
$6.00 $90.00
$5.00 $80.00
$4.00 $70.00
$60.00
$3.00
$50.00
$2.00 $40.00
$1.00 $30.00
June-20 June-21 June -22 June-20 June-21 June-22
8 | COMPRESSORTECH2 | JULY 2022
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