Monday, February 6, 2012

Quick Comparison of Liquid Natural Gas and Propane -- The Williston Basin, North Dakota, USA

I don't often do this but this is a pretty nice explanation of liquid natural gas vs compressed natural gas, etc.,  things I don't really understand. So, I have simply "cut and paste" a comment sent to me by Greg from FourFiftyGas.com:
I have been googling the small scale liquid natural gas (LNG). The components are skid size (think inter-modal container size). They can process "stranded gas" by removing carbon dioxide (CO2 and sulfur dioxide) from gas at flare sites before cooling to a liquid. In the short term the LNG should not be much different than propane but propane is passive so you can let it sit or lay there in the event of a vehicular crash.

By contrast, LNG is active, meaning that if it is not kept cool it will boil (unlike propane). This difference comes into play with the population density of areas. Out in the boondocks this is low so a big flare or an "air bomb" poses less of a threat.

On a BTU basis: benchmark natural gas can cost one quarter or less the cost of propane or heating oil. The system is expensive but the flare gas is almost free so it could be made to work in rural areas. Keeping a propane backup is easy. A LNG truck can carry a lot of fuel.

This is an area that is exciting to pursue. See more at http://fourfiftygas.com.

What I hear is that people off the natural gas pipeline are getting clobbered by propane and fuel oil (mobile) fuel costs. 
Is it just me or have you seen an increase in the word "skid" being used ever since the Bakken?
 
Everything is now being "skid-sized" -- Starbucks now has "short," "tall," grande," "vendi," and "skid-sized."

"Short" is not on the menu; one has to ask for it, and it is available only for hot drinks.

"Skid-Sized" is not on the menu either; it is available only in the Bakken, not including Dickinson.

1 comment:

  1. This is BENCHMARK WHOLESALE but natural gas is going for around $2.50 per CCF (one-million BTU) and heating oil is $3.17 per gallon, again BENCHMARK WHOLESALE. It takes eight gallons of fuel oil to get one-million BTU. Thus $25.36 for the fuel oil to get the one-million BTU.

    At the BENCHMARK WHOLESALE level natural gas is one tenth the cost of heating oil. This is "napkin math" and as they say "your mileage may vary" but there is a remarkable 10X decoupling in the BENCHMARK WHOLESALE cost of natural gas and fuel oil.

    Stranded natural gas can be had at a far lower price, especially if skid mounted processing systems can remove "wet gases" like propane and butane.

    I haven't done the math but figure that the BENCHMARK WHOLESALE propoane cost is six to eight times the cost of BENCHMARK WHOLESALE natural gas.

    Most of rural and small town USA are not on the natural gas pipeline systems so getting natural gas to them can save a lot of energy costs.

    On Craislist, old propane powered Minneapolis Moline Tractors occasionally pop up. You could easily built a dual fuel natural gas (probably compressed) and gasoline engine tractor.

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