When the rumor picks up the phrase “LNG Plant on Sakhalin,” more questions than answers arise in the head. What is this LNG? A picture is presented from a superhero movie where something very dangerous is being produced on a secret territory. A brief educational program for those who perceive the physics textbook in Russian and Chinese equally, who are unable to distinguish the molar mass from the molar mass, but are still trying to figure it out.
Where does natural gas come from?
Natural gas is a substance without color and odor, consisting of compounds of carbon atoms and hydrogen. The basis of natural gas is methane - CH 4 , with a certain amount of impurities - ethane C 2 H 6 , propane C 3 H 8 , butane C 4 H 10 , as well as nitrogen, carbon dioxide and hydrogen sulfide.
There are two theories for the appearance of natural gas in the bowels of the earth. Proponents of one believe that oil and gas were originally embedded in the structure of the planet, like other minerals. And according to the second, hydrocarbons make up the remains of organisms that died out 250 million years ago in the Paleozoic era, which were influenced by bacteria, temperature and pressure.
Physics for dummies, or what is LNG?
For most substances in nature, when the temperature and pressure change, a change in the distance between the molecules and a transition from one state of aggregation to another are characteristic: from gaseous to liquid, from liquid to solid and vice versa.
The acronym LNG stands for Liquefied Natural Gas. Adding two plus two, we find that LNG is a substance transferred from a natural gaseous state to a liquid by changing external factors: temperature and pressure. If it is very simplified, then LNG is produced in Sakhalin.
Why liquefy gas?
Sakhalin produces methane CH 4 , the impurity content is 2%. Such a substance in a liquid state occupies a volume six hundred times less than in a gaseous one. Accordingly, it is much more convenient to use it both for transportation and for subsequent storage in countries whose geographical location does not allow gas pipelines.
For example, the supply of LNG from Sakhalin to Japan is not a whim, but a necessity: the region’s high seismic activity forces it to send gas by sea and excludes the possibility of building a gas pipeline branch.
Field Development and Production Sharing Agreements
In the eighties of the twentieth century, the Russian Federation discovered thirty hydrocarbon deposits on the mainland shelf off the northeastern shores of Sakhalin Island in the Far East. Since 1996, the state has entered into several production-sharing agreements as part of offshore field development projects under the common name Sakhalin. Exxon Neftegas Limited becomes the operator of the Sakhalin-1 project, and Sakhalin Energy is committed to developing the Sakhalin-2 project. In total, nine projects were planned, but only the first two were developed.
A production sharing agreement is concluded between the state and the investing company, which undertakes, in exchange for the exclusive right to develop subsoil resources, to invest the necessary funds and independently develop deposits. The agreement also establishes a special taxation regime and conditions for the exploration, development and processing of hydrocarbons. The ownership of the resources remains with the state, the company pays 32% as income tax and 6% of royalties in cash for the use of natural resources.
Sakhalin-2 Project and LNG Plant
In 2009, the first Liquefied Natural Gas Plant in Russia was opened as part of the Sakhalin-2 project. The Prigorodnoye production complex is located in the ice-free part of the Sea of Okhotsk - on the shores of the Aniva Bay and 15 kilometers from the city of Korsakov.
The plant has two production lines that are capable of producing up to 4.8 million tons of liquefied natural gas per year - each. LNG from Sakhalin is supplied to Japan, South Korea, and the countries of North America.
For Russia, the opening of the plant was a real technological breakthrough, it opened up energy markets that were previously inaccessible. The production complex currently produces only 4.5% of all LNG in the world, but gas is scheduled under contracts for the next twenty years. And the good news is that there is room for increasing production capacity, there is demand. The problem is that there are not so many hydrocarbons left on the Sakhalin-2 project. Enough to execute contracts, but not to conclude new ones.
LNG production technology
Natural gas is extracted from special drilling production platforms of the Sakhalin-2 project, installed on the continental shelf in the Sea of Okhotsk.
From the Lunskaya-A field, oil, gas and condensate flow to the United Onshore Technological Complex, located at the exit of the offshore gas pipeline from the platform, in northeast Sakhalin. The OPF is treating natural gas, preparing for transfer via an onshore gas pipeline to an LNG plant, as well as to an oil shipment terminal. At the LNG plant of the Sakhalin-2 project, two production lines are installed where natural gas is refined, and then using the double mixed refrigerant technology developed by Shell, liquefied natural gas is produced. The technology is specially designed taking into account the unstable and fairly cold climate of Sakhalin Island.
After liquefaction, the LNG enters special storage tanks and awaits shipment to gas tankers. Shipment takes place through a specially constructed pier to receive tankers with an LNG capacity of up to 145 thousand cubic meters.
Production expansion
The operator of the Sakhalin-2 project is 50% + 1 share owned by PJSC Gazprom. Therefore, Gazprom has big plans for expanding LNG production, but for starters it is required to start the development of fields under the Sakhalin-3 project. The operator of the Sakhalin-3 project is Gazprom dobycha shelf, owned by PJSC Gazprom.
They plan to process gas produced from the Sakhalin-3 project in LNG on an additional production line. The line and field development are currently under planning and design. Expansion of production is necessary in order to expand the market and satisfy the growing needs of energy consumers. In addition, LNG production does not harm the environment, liquid gas can be easily transported and stored, shipping by sea allows cooperation with remote regions of the planet and provides an opportunity to compete with Qatar.
Despite the modest volume of production, compared to Qatar, the LNG plant at Sakhalin Energy until 2017 was considered the most efficient LNG plant in the world.
Interesting Facts
Sakhalin Energy has a truly diverse and multinational team. But at the LNG plant in Sakhalin, vacancies do not fly like hot cakes, because only a true professional and the best in his field can apply for a position in such a high-tech production. There are very few specialists in engineering positions from Russia - the problem is lack of experience and low level English proficiency: most of the negotiations, meetings and correspondence between employees are conducted in English. Nevertheless, ongoing work is underway to train Russian personnel and improve their skills.
The Russian Federation has so many minerals and ways to sell products that have been delivered absolutely free of charge that it will not be long to want to get off the energy "needle". The LNG plant only enhances addiction. Another thing is that, having a source of constant income received literally from the air, you should think about the issues of diversifying the economy and developing business, tourism and creating attractive investment conditions separately from hydrocarbons. But in Russia until the thunder strikes, the man will not cross himself.