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As U.S. LNG exports peak on the continent, cities across Europe are turning to natural gas from wells in Texas and Louisiana to light and heat their homes.
After its tankers reached Ukraine, Russia cut off pipelines to Europe, its biggest consumer. Sanctions have driven hundreds of LNG carriers offshore, forcing Europe to supply more US LNG than ever before. US LNG exports to Europe will more than double between 2021 and 2022, according to Kepler commodity data.
The imports, combined with mild weather and soaring prices, have dampened demand, reducing the risk of a harsh winter that could hit Europe's economy and leave its population in the dark. As the EU sets ambitious carbon reduction targets to reduce the impact of climate change, many European consumers are concerned about switching to fossil fuels.
For now, Europe is forced to increase LNG imports from the US, strengthen transatlantic trade ties and elevate America's role as an energy superpower.
But before American liquefied natural gas can be burned in a power plant in Italy, used to cook food in Spain, or used as fertilizer in Germany, it must be extracted from the ground, processed, cooled in pipes, loaded onto a ship and exchanged. Gas again. The journey will include thousands of miles of pipelines through Appalachian and Gulf Coast gas fields. A huge multi-billion dollar refrigerator; and international special vessels.
This is what the journey looks like.
Gas production
Today, US producers are drilling for gas primarily in the Permian Basin of West Texas and New Mexico; Marcellus Shale, under much of Appalachia; and the Haynesville Basin, which spans eastern Texas and western Louisiana. These regions accounted for 70% of US shale gas production in January, according to the Energy Information Administration.
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Executives and analysts expect these basins and Hinesville to supply the gas needed for several planned Gulf Coast export terminals in the second half of this decade. "You need Appalachia and Haynesville to serve the LNG side," said Bill Way, CEO of gas producer Southwest Energy Co.
To reach the gas, drillers insert pipes attached to the well into the ground. Workers typically drill about 2 miles vertically before turning the bit horizontally to drill about 2 miles into the shale. Then the hydraulic fracturing crew comes in and runs powerful pumps that pump water, sand and chemicals into the well to break up the shale rock and extract the gas molecules.
Gas purification
After hydrocarbons return to the surface, oil and gas, if necessary, are separated in a special container. Then the gas is transported to the processor through small diameter pipes. Water is removed there, as well as impurities such as sulfur, hydrogen sulfide, and carbon dioxide, which reduce the heat capacity of the gas or cause pipeline corrosion. Propane and butane are sold separately in addition to gas processing products.
Gas transportation
When gas is considered "pipeline quality," the producer pays a commission to a gas transmission company to transport the gas through the nation's 3 million miles of transmission lines. The fuel is metered and pumped into pipelines through about 1,700 gas compressors across the country. A gas terminal can be an underground storage facility, a distribution company, a power plant, or a gas liquefaction facility, among other things. About one tenth of all US goods are exported.
As for Southwest Energy, executives said the company sells about a third of its output from Appalachian and Haynesville directly to the Gulf LNG plants.
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There are currently seven multi-billion-dollar liquefaction plants operating in the US that can export 13 billion cubic feet of gas per day, more than 10% of US production. By 2030, new plants coming online are expected to increase that capacity to 23 billion cubic feet, according to S&P Global, requiring many more new gas wells.
In Louisiana, Cheniere Energy Inc. Its Sabine Pass plant is the second largest LNG plant in the world. After the gas enters four pipelines, it is transported to six liquid chambers, or "trains," each about the size of a small airport terminal.
First, the fuel is treated at a very low temperature to remove any impurities. It then passes through gas turbine engines, compressors and more than 200 cooling fans. Refrigerants, like household refrigerators, cool the gas in three stages until its temperature drops to 260 degrees Fahrenheit and it turns into a liquid. At that time, the gas became 1/600 of its original volume. The LNG is then stored in tanks large enough for a cargo plane.
Pipeline LNG is loaded onto specially designed vessels, each of which is the height of the Eiffel Tower. After 20 hours, LNG is fed to the ship's tanks through special pipes. According to the Ministry of Energy, in December, ships unloaded 41 cargoes from the Sabinsky Pass.
One ship can be enough to heat more than 43,000 American homes for a year, according to the Department of Energy.
Routes of oil tankers bound for US ports between December and June of last year.
Source: Spire Global
LNG delivery
Flexibility provisions in most U.S. export contracts allow buyers to ship LNG to locations where it is sold at a higher price. Last year, when gas prices in Europe hit record highs, the continent seized shipments to Asia, prompting countries such as Pakistan to seek alternative fuels and enriching traders. Shell Pvt
By 2022, 72 percent of the 44 million tons of LNG produced at Cheniere will be sent to Europe through two export facilities, the company said.
The contracts are generally for 15 to 20 years, allowing banks that finance LNG plants to repay their loans to exporters. Gas profits last year prompted several European companies to pledge long-term supply, but the environmental impact of methane, a major concern with natural gas when it releases carbon, is on the continent's mind. He signed additional contracts with executives and analysts.
"It's kind of a love-hate relationship," says Marcellus Catalano, an adviser to the Berkeley research group.
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After the journey, the LNG is offloaded offshore to a tanker or other vessel that can convert the liquid into a gas . In the coming years, it is expected that dozens of facilities will be built in the EU. According to the bloc's estimate, stopping the import of Russian gas by 2030 will cost at least 315 billion dollars in infrastructure costs. To speed up the construction of its infrastructure, Europe is leasing ships to serve as floating oil storage facilities. The ship from Wilhelmshaven in Germany will replace 11% of Russian gas imports, according to German utility Uniper SE. 2018-05-20 : . .
In a plant, heat exchangers change the temperature of a liquid that turns it into a gas. What is it? What is it?
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July 4, 2023
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