ACKNOWLEDGEMENTS

I would like to thank the Department of Chemical Engineering, NIT Calicut for providing me an opportunity to present a seminar on Natural Gas. I would like to thank my supervisor Dr. Malladi V Pavan Kumar, Assistant Professor , ChED for his steadfast support and guidance in this regard.

ABSTRACT
Natural gas, in itself, might be considered an uninteresting gas - it is colorless, shapeless, and odorless in its pure form. Quite uninteresting - except that natural gas is combustible, abundant in the United States and when burned it gives off a great deal of energy and few emissions. Unlike other fossil fuels, natural gas is clean burning and emits lower levels of potentially harmful byproducts into the air. We require energy constantly, to heat our homes, cook our food, and generate our electricity. It is this need for energy that has elevated natural gas to such a level of importance in our society, and in our lives. Cooling natural gas to about -260F at normal pressure results in the condensation of the gas into liquid form, known as Liquefied Natural Gas (LNG). LNG can be very useful, particularly for the transportation of natural gas, since LNG takes up about one six hundredth the volume of gaseous natural gas. While LNG is reasonably costly to produce, advances in technology are reducing the costs associated with the liquification and regasification of LNG. Because it is easy to transport, LNG can serve to make economical those stranded natural gas deposits for which the construction of pipelines is uneconomical.

INDEX
CONTENTS 1. 2. 3. 4. 5. 6. 7. Introduction Exploration Extraction Production Transportation Storage Uses PAGE NUMBER 4 8 10 12 22 23 24

1. INTRODUCTION
Natural gas is a vital component of the world's supply of energy. It is one of the cleanest, safest, and most useful of all energy sources. Despite its importance, however, there are many misconceptions about natural gas. For instance, the word 'gas' itself has a variety of different uses, and meanings. When we fuel our car, we put 'gas' in it. However, the gasoline that goes into your vehicle, while a fossil fuel itself, is very different from natural gas. The 'gas' in the common barbecue is actually propane, which, while closely associated and commonly found in natural gas, is not really natural gas itself. While commonly grouped in with other fossil fuels and sources of energy, there are many characteristics of natural gas that make it unique. Below is a bit of background information about natural gas, what it is exactly, how it is formed, and how it is found in nature.

What is Natural Gas?

Natural gas is a combustible mixture of hydrocarbon gases. While natural gas is formed primarily of methane, it can also include ethane, propane, butane and pentane. The composition of natural gas can vary widely, but below is a chart outlining the typical makeup of natural gas before it is refined.

In its purest form, such as the natural gas that is delivered to your home, it is almost pure methane. Methane is a molecule made up of one carbon atom and four hydrogen atoms, and is referred to as CH4. The distinctive rotten egg smell that we often associate with natural gas is actually an odorant called mercaptan that is added to the gas before it is delivered to the end-user. Mercaptan aids in detecting any leaks.

Natural gas is considered 'dry' when it is almost pure methane, having had most of the other commonly associated hydrocarbons removed. When other hydrocarbons are present, the natural gas is 'wet'. Natural gas has many uses, residentially, commercially, and industrially. Click on this link for more information on the multiple uses of natural gas. Found in reservoirs underneath the earth, natural gas is often associated with oil deposits. Production companies search for evidence of these reservoirs by using sophisticated technology that helps to find the location of the natural gas, and drill wells in the earth where it is likely to be found. Click on the link to learn more about the new technologies and their environmental impact. Once brought from underground, the natural gas is refined to remove impurities such as water, other gases, sand, and other compounds. Some hydrocarbons are removed and sold separately, including propane and butane. Other impurities are also removed, such as hydrogen sulfide (the refining of which can produce sulfur, which is then also sold separately). After refining, the clean natural gas is transmitted through a network of pipelines, thousands of miles of which exist in the United States alone. From these pipelines, natural gas is delivered to its point of use. For more information on how natural gas gets from underneath the ground to its final destination, click here. Natural gas can be measured in a number of different ways. As a gas, it can be measured by the volume it takes up at normal temperatures and pressures, commonly expressed in cubic feet. Production and distribution companies commonly measure natural gas in thousands of cubic feet (Mcf), millions of cubic feet (MMcf), or trillions of cubic feet (Tcf). While measuring by volume is useful, natural gas can also be measured as a source of energy. Like other forms of energy, natural gas is commonly measured and expressed in British thermal units (Btu). One Btu is the amount of natural gas that will produce enough energy to heat one pound of water by one degree at normal pressure. To give an idea, one cubic foot of natural gas contains about 1,027 Btus. When natural gas is delivered to a residence, it is measured by the gas utility in 'therms' for billing purposes. A therm is equivalent to 100,000 Btu, or just over 97 cubic feet, of natural gas.

The Formation of Natural Gas

Natural gas is a fossil fuel. Like oil and coal, this means that it is, essentially, the remains of plants and animals and microorganisms that lived millions and millions of years ago. But how do these once living organisms become an inanimate mixture of gases?

There are many different theories as to the origins of fossil fuels. The most widely accepted theory says that fossil fuels are formed when organic matter (such as the remains of a plant or animal) is compressed under the earth, at very high pressure for a very long time. This is referred to as thermogenic methane. Similar to the formation of oil, thermogenic methane is formed from organic particles that are covered in mud and other sediment. Over time, more and more sediment and mud and other debris are piled on top of the organic matter. This sediment and debris puts a great deal of pressure on the organic matter, which compresses it. This compression, combined with high temperatures found deep underneath the earth, breaks down the carbon bonds in the organic matter. As one gets deeper and deeper under the earths crust, the temperature gets higher and higher. At low temperatures (shallower deposits), more oil is produced relative to natural gas. At higher temperatures, however, more natural gas is created, as opposed to oil. That is why natural gas is usually associated with oil in deposits that are 1 to 2 miles below the earth's crust. Deeper deposits, very far underground, usually contain primarily natural gas, and in many cases, pure methane. Natural gas can also be formed through the transformation of organic matter by tiny microorganisms. This type of methane is referred to as biogenic methane. Methanogens, tiny methane-producing microorganisms, chemically break down organic matter to produce methane. These microorganisms are commonly found in areas near the surface of the earth that are void of oxygen. These microorganisms also live in the intestines of most animals, including humans. Formation of methane in this manner usually takes place close to the surface of the earth, and the methane produced is usually lost into the atmosphere. In certain circumstances, however, this methane can be trapped underground, recoverable as natural gas. An example of biogenic methane is landfill gas. Waste-containing landfills produce a relatively large amount of natural gas from the decomposition of the waste materials that they contain. New technologies are allowing this gas to be harvested and used to add to the supply of natural gas. A third way in which methane (and natural gas) may be formed is through abiogenic processes. Extremely deep under the earth's crust, there exist hydrogen-rich gases and carbon molecules. As these gases gradually rise towards the surface of the earth, they may interact with minerals that also exist underground, in the absence of oxygen. This interaction may result in a reaction, forming elements and compounds that are found in the atmosphere (including nitrogen, oxygen, carbon dioxide, argon, and water). If these gases are under very high pressure as they move toward the surface of the earth, they are likely to form methane deposits, similar to thermogenic methane.

Natural Gas Under the Earth

Although there are several ways that methane, and thus natural gas, may be formed, it is usually found underneath the surface of the earth. As natural gas has a low density, once formed it will rise toward the surface of the earth through loose, shale type rock and other material. Some of this methane will simply rise to the surface and dissipate into the air. However, a great deal of this methane will rise up into geological formations that 'trap' the gas under the ground. These formations are made up of layers of porous, sedimentary rock (kind of like a sponge that soaks up and contains the gas), with a denser, impermeable layer of rock on top. This impermeable rock traps the natural gas under the ground. If these formations are large enough, they can trap a great deal of natural gas underground, in what is known as a Source: U.S. Energy Information reservoir. There are a number of different types of these Administration formations, but the most common is created when the impermeable sedimentary rock forms a 'dome' shape, like an umbrella that catches all of the natural gas that is floating to the surface. There are a number of ways that this sort of 'dome' may be formed. For instance, faults are a common location for oil and natural gas deposits to exist. A fault occurs when the normal sedimentary layers 'split' vertically, so that impermeable rock shifts down to trap natural gas in the more permeable limestone or sandstone layers. Essentially, the geological formation, which layers impermeable rock over more porous, oil and gas rich sediment, has the potential to form a reservoir. The picture below shows how natural gas and oil can be trapped under impermeable sedimentary rock, in what is known as an anticlinal formation. To successfully bring these fossil fuels to the surface, a hole must be drilled through the impermeable rock to release the fossil fuels under pressure. Note that in reservoirs that contain oil and gas, the gas, being the least dense, is found closest to the surface, with the oil beneath it, typicall followed by a certain amount of water. With natural gas trapped under the earth in this fashion, it can be recovered by drilling a hole through the impermeable rock. Gas in these reservoirs is typically under pressure, allowing it to escape from the reservoir on its own.

2. Exploration
The process of getting natural gas out of the ground, and to its final destination to be used, is a complicated one. There is a great deal of behind-the-scenes activity that goes into delivering natural gas to your home, even though it takes only the flick of a switch to turn it on. This section provides an overview of the processes that allow the natural gas industry to get their product out of the ground, and transform it into the natural gas that is used in your homes and in industry. The practice of locating natural gas and petroleum deposits has been transformed dramatically in the last 20 years with the advent of extremely advanced, ingenious technology. In the early days of the industry, the only way of locating underground petroleum and natural gas deposits was to search for surface evidence of these underground formations. Those searching for natural gas deposits were forced to scour the earth, looking for seepages of oil or gas emitted from underground before they had any clue that there were deposits underneath. However, because such a low proportion of petroleum and natural gas deposits actually seep to the surface, this made for a very inefficient and difficult exploration process. As the demand for fossil fuel energy has increased dramatically over the past years, so has the necessity for more accurate methods of locating these deposits. Sources of Data Technology has allowed for a remarkable increase in the success rate of locating natural gas reservoirs. In this section, it will be outlined how geologists and geophysicists use technology and knowledge of the properties of underground natural gas deposits to gather data that can later be interpreted and used to make educated guesses as to where natural gas deposits exist. However, it must be remembered that the process of exploring for natural gas and petroleum deposits is characteristically an uncertain one, due to the complexity of searching for something that is often thousands of feet below ground. Geological Surveys Exploration for natural gas typically begins with geologists examining the surface structure of the earth, and determining areas where it is geologically likely that petroleum or gas deposits might exist. It was discovered in the mid 1800s that anticlinal slopes had a particularly increased chance of containing petroleum or gas deposits. These anticlinal slopes are areas where the earth has folded up on itself, forming the dome shape that is characteristic of a great number of reservoirs. By surveying and mapping the surface and sub-surface characteristics of a certain area, the geologist can extrapolate which areas are most likely to contain a petroleum or natural gas reservoir. The geologist has many tools at his disposal to do so, from the
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outcroppings of rocks on the surface or in valleys and gorges, to the geologic information attained from the rock cuttings and samples obtained from the digging of irrigation ditches, water wells, and other oil and gas wells. This information is all combined to allow the geologist to make inferences as to the fluid content, porosity, permeability, age, and formation sequence of the rocks underneath the surface of a particular area. Once the geologist has determined an area where it is geologically possible for a natural gas or petroleum formation to exist, further tests can be performed to gain more detailed data about the potential reservoir area. These tests allow for the more accurate mapping of underground formations, most notably those formations that are commonly associated with natural gas and petroleum reservoirs. These tests are commonly performed by a geophysicist, one who uses technology to find and map underground rock formations. Seismic Exploration Arguably the biggest breakthrough in petroleum and natural gas exploration came through the use of basic seismology. Seismology refers to the study of how energy, in the form of seismic waves, moves through the Earth's crust and interacts differently with various types of underground formations. In 1855, L. Palmiere developed the first 'seismograph', an instrument used to detect and record earthquakes. This device was able to pick up and record the vibrations of the earth that occur during an earthquake. However, it wasn't until 1921 that this technology was applied to the petroleum A Seismograph industry and used to help locate underground fossil fuel Source: U.S. Geological Survey formations.

The basic concept of seismology is quite simple. As the Earth's crust is composed of different layers, each with its own properties, energy (in the form of seismic waves) traveling underground interacts differently with each of these layers. These seismic waves, emitted from a source, will travel through the earth, but also be reflected back toward the source by the different underground layers. Through seismology, geophysicists are able to artificially create vibrations on the surface and record how these vibrations are reflected back to the surface, revealing the properties of the geology beneath. An analogy that makes intuitive sense is that of bouncing a rubber ball. A rubber ball that is dropped on concrete will bounce in a much different way than a rubber ball dropped on Placing Geophones sand. In the same manner, seismic waves sent underground will reflect off dense layers of rock much differently than extremely Source: API porous layers of rock, allowing the geologist to infer from seismic data exactly what layers exist underground and at what depth. While the actual use of seismology in practice is quite a bit more complicated and technical, this basic concept still holds.

3. Extraction
Once a potential natural gas deposit has been located by a team of exploration geologists and geophysicists, it is up to a team of drilling experts to dig down to where the natural gas is thought to exist. This section will describe the process of drilling for natural gas, both onshore and offshore. Although the process of digging deep into the Earth's crust to find deposits of natural gas that may or may not actually exist seems daunting, the industry has developed a number of innovations and techniques that both decrease the cost and increase the efficiency of drilling for natural gas. Advancements in technology have contributed greatly to the increased efficiency and success rate for drilling natural gas wells.

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Determining whether to drill a well depends on a variety of factors, including the economic potential of the hoped-for natural gas reservoir. It costs a great deal of money for exploration and production companies to search and drill for natural gas, and there is always the inherent risk that no natural gas will be found. The exact placement of the drill site depends on many factors, including the nature of the potential formation to be drilled, the characteristics of the subsurface geology, and the depth and size of the target deposit. After the Source: Anadarko Petroleum Corporation geophysical team identifies the optimal location for a well, it is necessary for the drilling company to ensure that it completes all the necessary steps so that it can legally drill in that area. This usually involves securing permits for the drilling operations, establishment of a legal arrangement to allow the natural gas company to extract and sell the resources under a given area of land, and a design for gathering lines that will connect the well to the pipeline. If the new well, once drilled, does in fact come in contact with natural gas deposits, it is developed to allow for the extraction of this natural gas, and is termed a 'development' or 'productive' well. At this point, with the well drilled and hydrocarbons present, the well may be completed to facilitate its production of natural gas. However, if the exploration team was incorrect in its estimation of the existence of a marketable quantity of natural gas at a wellsite, the well is termed a 'dry well', and production does not proceed. Onshore and offshore drilling present unique drilling environments, requiring special techniques and equipment.

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4. Production
Once a well has been drilled and the presence of commercially viable quantities of fossil fuel has been verified, the next step is actually lifting the natural gas out of the ground and processing it for transportation. Natural gas, as it exists underground, is not exactly the same as the natural gas that comes through the pipelines to our homes and businesses. Natural gas, as we use it, is almost entirely methane. However, when we find natural gas underground, it comes associated with a variety of other trace compounds and gases, as well as oil and water, which must be removed. Natural gas transported through pipelines must meet purity Source: ChevronTexaco Corporation specifications to be allowed in, so most natural gas processing occurs near the well. This section outlines the process of taking raw natural gas from underground formations and processing it into pipeline quality gas, ready for transportation. Click on the links below to learn about well completion and natural gas processing.

Processing Natural Gas

Natural gas, as it is used by consumers, is much different from the natural gas that is brought from underground up to the wellhead. Although the processing of natural gas is in many respects less complicated than the processing and refining of crude oil, it is equally as necessary before its use by end users. The natural gas used by consumers is composed almost entirely of methane. However, natural gas found at the wellhead, although still composed primarily of methane, is by no means as pure. Raw natural gas comes from three types of wells: oil wells, gas wells, and condensate wells. Natural gas that comes from oil wells is typically termed 'associated gas'. This gas can exist separate from oil in the formation (free gas), or dissolved in the crude oil (dissolved gas). Natural gas from gas and condensate wells, in which there is little or no crude oil, is termed 'nonassociated gas'. Gas wells typically produce raw natural gas by itself, while condensate wells produce free natural gas along with a semiliquid hydrocarbon condensate. Whatever the source of the natural gas, once separated from crude oil (if present) it commonly exists in mixtures with other hydrocarbons;
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principally ethane, propane, butane, and pentanes. In addition, raw natural gas contains water vapor, hydrogen sulfide (H2S), carbon dioxide, helium, nitrogen, and other compounds. Natural gas processing consists of separating all of the various hydrocarbons and fluids from the pure natural gas, to produce what is known as 'pipeline quality' dry natural gas. Major transportation pipelines usually impose restrictions on the make-up of the natural gas that is allowed into the pipeline. That means that before the natural gas can be transported it must be purified. While the ethane, propane, butane, and pentanes must be removed from natural gas, this does not mean that they are all 'waste products'. In fact, associated hydrocarbons, known as 'natural gas liquids' (NGLs) can be very valuable by-products of natural gas processing. NGLs include ethane, propane, butane, iso-butane, and natural gasoline. These NGLs are sold separately and have a variety of different uses; including enhancing oil recovery in oil wells, providing raw materials for oil refineries or petrochemical plants, and as sources of energy.

A Natural Gas Processing Plant Source: Duke Energy Gas Transmission Canada While some of the needed processing can be accomplished at or near the wellhead (field processing), the complete processing of natural gas takes place at a processing plant,
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usually located in a natural gas producing region. The extracted natural gas is transported to these processing plants through a network of gathering pipelines, which are small-diameter, low pressure pipes. A complex gathering system can consist of thousands of miles of pipes, interconnecting the processing plant to upwards of 100 wells in the area. According to the American Gas Association's Gas Facts 2000, there was an estimated 36,100 miles of gathering system pipelines in the U.S. in 1999. In addition to processing done at the wellhead and at centralized processing plants, some final processing is also sometimes accomplished at 'straddle extraction plants'. These plants are located on major pipeline systems. Although the natural gas that arrives at these straddle extraction plants is already of pipeline quality, in certain instances there still exist small quantities of NGLs, which are extracted at the straddle plants. The actual practice of processing natural gas to pipeline dry gas quality levels can be quite complex, but usually involves four main processes to remove the various impurities: Oil and Condensate Removal Water Removal Separation of Natural Gas Liquids Sulfur and Carbon Dioxide Removal In addition to the four processes above, heaters and scrubbers are installed, usually at or near the wellhead. The scrubbers serve primarily to remove sand and other largeparticle impurities. The heaters ensure that the temperature of the gas does not drop too low. With natural gas that contains even low quantities of water, natural gas hydrates have a tendency to form when temperatures drop. These hydrates are solid or semi-solid compounds, resembling ice like crystals. Should these hydrates accumulate, they can impede the passage of natural gas through valves and gathering systems. To reduce the occurrence of hydrates, small natural gas-fired heating units are typically installed along the gathering pipe wherever it is likely that hydrates may form. Oil and Condensate Removal In order to process and transport associated dissolved natural gas, it must be separated from the oil in which it is dissolved. This separation of natural gas from oil is most often done using equipment installed at or near the wellhead. The actual process used to separate oil from natural gas, as well as the equipment that is
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used, can vary widely. Although dry pipeline quality natural gas is virtually identical across different geographic areas, raw natural gas from different regions may have different compositions and separation requirements. In many instances, natural gas is dissolved in oil underground primarily due to the pressure that the formation is under. When this natural gas and oil is produced, it is possible that it will separate on its own, simply due to decreased pressure; much like opening a can of soda pop allows the release of dissolved carbon dioxide. In these cases, separation of oil and gas is relatively easy, and the two hydrocarbons are sent separate ways for further processing. The most basic type of separator is known as a conventional separator. It consists of a simple closed tank, where the force of gravity serves to separate the heavier liquids like oil, and the lighter gases, like natural gas. In certain instances, however, specialized equipment is necessary to separate oil and natural gas. An example of this type of equipment is the Low-Temperature Separator (LTX). This is most often used for wells producing high pressure gas along with light crude oil or condensate. These separators use pressure differentials to cool the wet natural gas and separate the oil and condensate. Wet gas enters the separator, being cooled slightly by a heat exchanger. The gas then travels through a high pressure liquid 'knockout', which serves to remove any liquids into a low-temperature separator. The gas then flows into this low-temperature separator through a choke mechanism, which expands the gas as it enters the separator. This rapid expansion of the gas allows for the lowering of the temperature in the separator. After liquid removal, the dry gas then travels back through the heat exchanger and is warmed by the incoming wet gas. By varying the pressure of the gas in various sections of the separator, it is possible to vary the temperature, which causes the oil and some water to be condensed out of the wet gas stream. This basic pressure-temperature relationship can work in reverse as well, to extract gas from a liquid oil stream. Water Removal In addition to separating oil and some condensate from the wet gas stream, it is necessary to remove most of the associated water. Most of the liquid, free water associated with extracted natural gas is removed by simple separation methods at or near the wellhead. However, the removal of the water vapor that exists in solution in natural gas requires a more complex treatment. This treatment consists of 'dehydrating' the natural gas, which usually involves one of two processes: either absorption, or adsorption. Absorption occurs when the water vapor is taken out by a dehydrating agent. Adsorption occurs when the water vapor is condensed and collected on the surface.
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Glycol Dehydration An example of absorption dehydration is known as Glycol Dehydration. In this process, a liquid desiccant dehydrator serves to absorb water vapor from the gas stream. Glycol, the principal agent in this process, has a chemical affinity for water. This means that, when in contact with a stream of natural gas that contains water, glycol will serve to 'steal' the water out of the gas stream. Essentially, glycol dehydration involves using a glycol solution, usually either diethylene glycol (DEG) or triethylene glycol (TEG), which is brought into contact with the wet gas stream in what is called the 'contactor'. The glycol solution will absorb water from the wet gas. Once absorbed, the glycol particles become heavier and sink to the bottom of the contactor where they are removed. The natural gas, having been stripped of most of its water content, is then transported out of the dehydrator. The glycol solution, bearing all of the water stripped from the natural gas, is put through a specialized boiler designed to vaporize only the water out of the solution. While water has a boiling point of 212 degrees Fahrenheit, glycol does not boil until 400 degrees Fahrenheit. This boiling point differential makes it relatively easy to remove water from the glycol solution, allowing it be reused in the dehydration process. A new innovation in this process has been the addition of flash tank separatorcondensers. As well as absorbing water from the wet gas stream, the glycol solution occasionally carries with it small amounts of methane and other compounds found in the wet gas. In the past, this methane was simply vented out of the boiler. In addition to losing a portion of the natural gas that was extracted, this venting contributes to air pollution and the greenhouse effect. In order to decrease the amount of methane and other compounds that are lost, flash tank separator-condensers work to remove these compounds before the glycol solution reaches the boiler. Essentially, a flash tank separator consists of a device that reduces the pressure of the glycol solution stream, allowing the methane and other hydrocarbons to vaporize ('flash'). The glycol solution then travels to the boiler, which may also be fitted with air or water cooled condensers, which serve to capture any remaining organic compounds that may remain in the glycol solution. In practice, according to the Department of Energy's Office of Fossil Energy, these systems have been shown to recover 90 to 99 percent of methane that would otherwise be flared into the atmosphere. To learn more about glycol dehydration, visit the Gas Technology Institute's website here. Solid-Desiccant Dehydration Solid-desiccant dehydration is the primary form of dehydrating natural gas using
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adsorption, and usually consists of two or more adsorption towers, which are filled with a solid desiccant. Typical desiccants include activated alumina or a granular silica gel material. Wet natural gas is passed through these towers, from top to bottom. As the wet gas passes around the particles of desiccant material, water is retained on the surface of these desiccant particles. Passing through the entire desiccant bed, almost all of the water is adsorbed onto the desiccant material, leaving the dry gas to exit the bottom of the tower. Solid-desiccant dehydrators are typically more effective than glycol dehydrators, and are usually installed as a type of straddle system along natural gas pipelines. These types of dehydration systems are best suited for large volumes of gas under very high pressure, and are thus usually located on a pipeline downstream of a compressor station. Two or more Absorption Towers towers are required due to the fact that after a certain period of use, the Source: Duke Energy Gas Transmission Canada desiccant in a particular tower becomes saturated with water. To 'regenerate' the desiccant, a high-temperature heater is used to heat gas to a very high temperature. Passing this heated gas through a saturated desiccant bed vaporizes the water in the desiccant tower, leaving it dry and allowing for further natural gas dehydration.

Separation of Natural Gas Liquids Natural gas coming directly from a well contains many natural gas liquids that are commonly removed. In most instances, natural gas liquids (NGLs) have a higher value as separate products, and it is thus economical to remove them Gas Processing Plant with Absorption Towers from the gas stream. The removal of natural gas liquids usually takes place in Source: Duke Energy Gas Transmission Canada a relatively centralized processing plant,
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and uses techniques similar to those used to dehydrate natural gas. There are two basic steps to the treatment of natural gas liquids in the natural gas stream. First, the liquids must be extracted from the natural gas. Second, these natural gas liquids must be separated themselves, down to their base components. NGL Extraction There are two principle techniques for removing NGLs from the natural gas stream: the absorption method and the cryogenic expander process. According to the Gas Processors Association, these two processes account for around 90 percent of total natural gas liquids production. The Absorption Method The absorption method of NGL extraction is very similar to using absorption for dehydration. The main difference is that, in NGL absorption, an absorbing oil is used as opposed to glycol. This absorbing oil has an 'affinity' for NGLs in much the same manner as glycol has an affinity for water. Before the oil has picked up any NGLs, it is termed 'lean' absorption Pipes and Absorption Towers oil. As the natural gas is passed through an absorption tower, it is Source: Duke Energy Gas Transmission Canada brought into contact with the absorption oil which soaks up a high proportion of the NGLs. The 'rich' absorption oil, now containing NGLs, exits the absorption tower through the bottom. It is now a mixture of absorption oil, propane, butanes, pentanes, and other heavier hydrocarbons. The rich oil is fed into lean oil stills, where the mixture is heated to a temperature above the boiling point of the NGLs, but below that of the oil. This process allows for the recovery of around 75 percent of butanes, and 85 - 90 percent of pentanes and heavier molecules from the natural gas stream. The basic absorption process above can be modified to improve its effectiveness, or to target the extraction of specific NGLs. In the refrigerated oil absorption method, where the lean oil is cooled through refrigeration, propane recovery can be upwards of 90 percent, and around 40 percent of ethane can be extracted from the natural gas stream.
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Extraction of the other, heavier NGLs can be close to 100 percent using this process. The Cryogenic Expansion Process Cryogenic processes are also used to extract NGLs from natural gas. While absorption methods can extract almost all of the heavier NGLs, the lighter hydrocarbons, such as ethane, are often more difficult to recover from the natural gas stream. In certain instances, it is economic to simply leave the lighter NGLs in the natural gas stream. However, if it is economic to extract ethane and other lighter hydrocarbons, cryogenic processes are required for high recovery rates. Essentially, cryogenic processes consist of dropping the temperature of the gas stream to around -120 degrees Fahrenheit. There are a number of different ways of chilling the gas to these temperatures, but one of the most effective is known as the turbo expander process. In this process, external refrigerants are used to cool the natural gas stream. Then, an expansion turbine is used to rapidly expand the chilled gases, which causes the temperature to drop significantly. This rapid temperature drop condenses ethane and other hydrocarbons in the gas stream, while maintaining methane in gaseous form. This process allows for the recovery of about 90 to 95 percent of the ethane originally in the gas stream. In addition, the expansion turbine is able to convert some of the energy released when the natural gas stream is expanded into recompressing the gaseous methane effluent, thus saving energy costs associated with extracting ethane. The extraction of NGLs from the natural gas stream produces both cleaner, purer natural gas, as well as the valuable hydrocarbons that are the NGLs themselves. Natural Gas Liquid Fractionation Once NGLs have been removed from the natural gas stream, they must be broken down into their base components to be useful. That is, the mixed stream of different NGLs must be separated out. The process used to accomplish this task is called fractionation. Fractionation works based on the different boiling points of the different hydrocarbons in the NGL stream. Essentially, fractionation occurs in stages consisting of the boiling off of hydrocarbons one by one. The name of a particular fractionator gives an idea as to its purpose, as it is conventionally named for the hydrocarbon that is boiled off. The entire fractionation process is broken down into steps, starting with the removal of the lighter NGLs from the stream. The particular fractionators are used in the following order: Deethanizer - this step separates the ethane from the NGL stream. Depropanizer - the next step separates the propane.
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Debutanizer - this step boils off the butanes, leaving the pentanes and heavier hydrocarbons in the NGL stream. Butane Splitter or Deisobutanizer - this step separates the iso and normal butanes. By proceeding from the lightest hydrocarbons to the heaviest, it is possible to separate the different NGLs reasonably easily.. Sulfur and Carbon Dioxide Removal In addition to water, oil, and NGL removal, one of the most important parts of gas processing involves the removal of sulfur and carbon dioxide. Natural gas from some wells contains significant amounts of sulfur and carbon dioxide. This natural gas, because of the rotten smell provided by its sulfur content, is commonly called 'sour gas'. Sour gas is undesirable because the sulfur compounds it contains can be extremely harmful, even lethal, to breathe. Sour gas can also be extremely corrosive. In addition, the sulfur that exists in the natural gas stream can be extracted and marketed on its own. In fact, according to the USGS, U.S. sulfur production from gas processing plants accounts for about 15 percent of the total U.S. production of sulfur. Sulfur exists in natural gas as hydrogen sulfide (H2S), and the gas is usually considered sour if the hydrogen sulfide content exceeds 5.7 milligrams of H2S per cubic meter of natural gas. The process for removing hydrogen sulfide from sour gas is commonly referred to as 'sweetening' the gas. The primary process for sweetening sour natural gas is quite similar to the Gas Sweetening Plant processes of glycol dehydration and NGL Source: Duke Energy Gas Transmission Canada absorption. In this case, however, amine solutions are used to remove the hydrogen sulfide. This process is known simply as the 'amine process', or alternatively as the Girdler process, and is used in 95 percent of U.S. gas sweetening operations. The sour gas is run through a tower, which contains the amine solution. This solution has an affinity for sulfur, and absorbs it much like glycol absorbing water. There are two principle amine solutions used, monoethanolamine (MEA) and diethanolamine (DEA). Either of these compounds, in liquid form, will absorb sulfur compounds from natural gas as it passes through. The effluent gas is virtually free of sulfur compounds, and thus loses
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its sour gas status. Like the process for NGL extraction and glycol dehydration, the amine solution used can be regenerated (that is, the absorbed sulfur is removed), allowing it to be reused to treat more sour gas. Although most sour gas sweetening involves the amine absorption process, it is also possible to use solid desiccants like iron sponges to remove the sulfide and carbon dioxide. Sulfur can be sold and used if reduced to its elemental form. Elemental sulfur is a bright yellow powder like material, and can often be seen in large piles near gas treatment plants, as is shown. In order to recover elemental sulfur from the gas processing plant, the sulfur containing discharge from a gas sweetening process must be further treated. The process used to recover sulfur is known as the Claus process, and involves using thermal and catalytic reactions to extract the elemental sulfur from the hydrogen sulfide solution. In all, the Claus process is usually able to recover 97 percent of the sulfur that has been removed from the natural gas stream. Since it is such a polluting and harmful substance, further filtering, incineration, and 'tail gas' clean up efforts ensure that well over 98 percent of the sulfur is recovered. Gas processing is an instrumental piece of the natural gas value chain. It is instrumental in ensuring that the natural gas intended for use is as clean and pure as possible, making it the clean burning and environmentally sound energy choice. Once the natural gas has been fully processed, and is ready to be consumed, it must be transported from those areas that produce natural gas, to those areas that require it.

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5. The transportation of Natural Gas

The efficient and effective movement of natural gas from producing regions to consumption regions requires an extensive and elaborate transportation system. In many instances, natural gas produced from a particular well will have to travel a great distance to reach its point of use. The transportation system for natural gas consists of a complex network of pipelines, designed to quickly and efficiently transport natural gas from its origin, to areas of high natural gas demand. Transportation of natural gas is closely linked to its storage: should the natural gas being transported not be immediately required, it can be put into storage facilities for when it is needed. Source: Duke Energy Gas There are three major types of pipelines along the Transmission Canada transportation route: the gathering system, the interstate pipeline system, and the distribution system. The gathering system consists of low pressure, small diameter pipelines that transport raw natural gas from the wellhead to the processing plant. Should natural gas from a particular well have high sulfur and carbon dioxide contents (sour gas), a specialized sour gas gathering pipe must be installed. Sour gas is corrosive, thus its transportation from the wellhead to the sweetening plant must be done carefully Pipelines can be characterized as interstate or intrastate. Interstate pipelines are similar to in the interstate highway system: they carry natural gas across state boundaries, in some cases clear across the country. Intrastate pipelines, on the other hand, transport natural gas within a particular state. This section will cover only the fundamentals of interstate natural gas pipelines, however the technical and operational details discussed are essentially the same for intrastate pipelines.

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6. Storage of natural gas

Natural gas, like most other commodities, can be stored for an indefinite period of time. The exploration, production, and transportation of natural gas takes time, and the natural gas that reaches its destination is not always needed right away, so it is injected into underground storage facilities. These storage facilities can be located near market centers that do not have a ready supply of locally produced natural gas. Traditionally, natural gas has been a seasonal fuel. That is, demand for natural Valves at a Natural Gas Storage Facility gas is usually higher during the winter, Source: Duke Energy Gas Transmission Canada partly because it is used for heat in residential and commercial settings. Stored natural gas plays a vital role in ensuring that any excess supply delivered during the summer months is available to meet the increased demand of the winter months. However, with the recent trend towards natural gas fired electric generation, demand for natural gas during the summer months is now increasing (due to the demand for electricity to power air conditioners and the like). Natural gas in storage also serves as insurance against any unforeseen accidents, natural disasters, or other occurrences that may affect the production or delivery of natural gas. Natural gas storage plays a vital role in maintaining the reliability of supply needed to meet the demands of consumers. Historically, when natural gas was a regulated commodity, storage was part of the bundled product sold by the pipelines to distribution utilities. This all changed in 1992 with the introduction of the Federal Energy Regulatory Commission's (FERC) Order 636, which opened up the natural gas market to deregulation. Essentially, this meant that where natural gas storage was required prior to Order 636 for the operational requirements of the pipelines in meeting the needs of the utilities, it is now available to anyone seeking storage for commercial purposes or operational requirements. Storage used to serve only as a buffer between transportation and distribution, to ensure adequate supplies of natural gas were in place for seasonal demand shifts, and unexpected demand surges. Now, in addition to serving those purposes, natural gas storage is also used by industry participants for commercial
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reasons; storing gas when prices are low, and withdrawing and selling it when prices are high, for instance. The purpose and use of storage has been closely linked to the regulatory environment of the time.

7. Uses
For hundreds of years, natural gas has been known as a very useful substance. The Chinese discovered a very long time ago that the energy in natural gas could be harnessed, and used to heat water. In the early days of the natural gas industry, the gas was mainly used to light streetlamps, and the occasional house. However, with much improved distribution channels and technological advancements, natural gas is being used in ways never thought possible. There are so many different applications for this fossil fuel that it is hard to provide an exhaustive list of everything it is used for. And no doubt, new uses are being discovered all the time. To learn more about technological advancements in the natural gas industry, click here. Natural gas has many applications, commercially, in your home, in industry, and even in the transportation sector! While the uses described here are not exhaustive, they may help to show just how many things natural gas can do. According to the Energy Information Administration, energy from natural gas accounts for 24 percent of total energy consumed in the United States, making it a vital component of the nation's energy supply. For more detailed information on the demand for and supply of energy, and natural gas, including forecasts and outlooks, click here. Natural gas is used across all sectors, in varying amounts. The graph below Natural Gas Use By Sector gives an idea of the proportion of Source: EIA - Annual Energy Outlook 2002 natural gas use per sector. The industrial sector accounts for the greatest proportion of natural gas use in the United States, with the residential sector consuming the second greatest quantity of natural gas.

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uses for natural gas in each sector: Residential Uses Commercial Uses Uses in Industry Natural Gas in the Transportation Sector Electric Generation Using Natural Gas

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