gasworld Magazine Issue 105 February 2014

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ISSN 1755-3857 www.gasworld.com February 2014 Issue 105

Sea change The rise of LNG bunkering Big opportunities in LNG distribution

Driven by diversification An interview with Iwatani Corporation Inside this issue: Cryogenic tanks • Hydrogen • Focus on Japan

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CONTENTS

Interview

Regional News 6

Europe Worthington confirms construction of plant

10

Americas Long-term asset management deal signed

14

Asia-Pacific Potential China market in focus

18 Driven by diversification An interview with Hisato Ueha, Senior VicePresident of Iwatani Corporation Page 32

RasGas officially inaugurates Qatar II plant

20

Technology New online gas analyser from Dansensor

22

Hot topic

Middle East

Hydrogen McPhy success with world first hydrogen system

24

LNG LNG to be available in Germany by 2015

26

Intelligence Vietnam: Rising gas intensity

Feature Articles Is the hydrogen revolution upon us?

30

With a multitude of plans to launch hydrogen powered vehicles in 2015, is the world ready for the hydrogen revolution?

Page 28

36

Cryogenic valves for an evolving LNG industry Keith Stewart

LNG distribution Small-scale supply, big opportunities

40

LNG distribution Enabling mobility

magazines – website – conferences

ISSN 1755-3857 www.gasworld.com February 2014 Issue 105

Sea change The rise of LNG bunkering Big opportunities in LNG distribution

Driven by diversification An interview with Iwatani Corporation Inside this issue: Cryogenic tanks • Hydrogen • Focus on Japan

On the cover this issue Changes in the shipping industry are driving a rethink in how these vessels are powered – which is in turn fuelling the rise of LNG bunkering. This is just one example of the opportunities in LNG distribution.

Photo: [©] [Claire Droppert] / Rotterdam Image Bank.

NEXT ISSUE...

Food processing - Ensuring food safety and integrity - The thirst for gas mixing technologies - Changing carbon dioxide demands

46

Sea change

50

Regional markets

52

In focus...

58

Cryogenic tanks

60

BCGA Annual Conference 2014

62

Equipment profile

64

Company profile

The rise of LNG bunkering Focus on Japan Cryogenic tanks and tankers Evolving the cold converter Showcasing industry progress Cryogenic valves Shell-N-Tube

66

Community corner Events, tweets and polls February 2014 • gasworld | 03

See us at Middle East Industrial Gas Conference, Dubai, UAE on December 3-5, 2013

WELCOME

TEAM MAGAZINE

Managing Editor Rob Cockerill rob.cockerill@gasworld.com Production Manager Jon Evans jon.evans@gasworld.com Design Assistant Mark Mitchell mark.mitchell@gasworld.com Web Editor Stuart Radnedge stuart.radnedge@gasworld.com Feature Writers Simon Augustus, Helen Carmichael Sam A. Rushing, Roy Irani

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Editorial Diversification is often at the heart of many successful growth strategies. According to a market matrix presented Managing Editor by Russian-American Igor Ansoff in 1965, diversification is one of four possible strategies for business growth. It is also very much an underlying theme running throughout this month’s magazine.

Iwatani Corporation heads into 2014 driven by diversification. The company has been expanding and restructuring its operations throughout its more than 80 years of business, and readily recognises that further divergence and overseas investment will be required if it is to realise its aims in the future. As explained in our interview with Senior Vice-President Hisato Ueha from page 32, Iwatani “Big opportunities strives to be ‘a unique conglomerate company with Gas & Energy as a main concept’. exist in the smallDiversification is also in the spotlight via our cover scale supply chain... theme, LNG distribution. This sector needs little introduction to the industrial gases business, such Cryostar and Chart are is its striking rise in significance to the industry. among those talking Countless companies have invested in creating or distributive LNG over developing their LNG presence – and many are already reaping the reward. the coming pages” Big opportunities exist in the small-scale supply chain, though our features here perhaps lead us to question whether it really is true diversification; the demand for equipment is not just for new products and technologies, but the use and adaptation of existing technology too. Cryostar and Chart are among those talking distributive LNG over the coming pages, while Helen Carmichael drills down into the environmental regulations driving change in the shipping industry and the rise of LNG bunkering.

An exploration of cryogenic tanks, trailers and valves continues the insight into the world of cryogenics this February, with features from Stuart Radnedge, Hannes Rucker, Herose and Bestobell Valves providing plenty to keep you busy until next time.

ROB COCKERILL

Rob Cockerill, Managing Editor (rob.cockerill@gasworld.com)

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EUROPE

Worthington confirms construction of new Austrian acetylene cylinder massing plant “...the new plant will additionally improve our capabilities and quality”

AUSTRIA

After its existing acetylene cylinder massing plant was destroyed by fire in August (2013), Worthington Industries has announced the construction of a new massing plant in Kienberg, Austria.

The plant will be located along with Worthington’s cylinder manufacture facility in Kienberg and production is anticipated to resume in second quarter 2014.

A statement to customers confirmed, “We are pleased to confirm that Worthington is rebuilding a new plant for the production of asbestos-

© Worthington Industries

free porous mass acetylene cylinders and we look forward to again servicing our international acetylene cylinder markets soon.”

“We are proud of the quality

reputation our acetylene cylinders have earned over decades and expect the new plant will additionally improve our capabilities and quality.”

The acetylene product line is an important component of Worthington’s global industrial gas offering, which includes steel high pressure and acetylene cylinders manufactured in its Austrian facility, aluminium high pressure tanks manufactured in Mississippi (US) and a new liquid cryogenic cylinder line manufactured in Ohio (US), which launches in early 2014.

BOC introduces new car refrigerant in UK UNITED KINGDOM

Opteon® YF (R1234yf), a new and environmentally friendly refrigerant for cars, is now available in the UK & Ireland from Linde-BOC. Produced by DuPont, Opteon® YF has a significantly lower global warming potential (GWP) – but the same cooling capability – as the current car refrigerant R134a. The EU’s MAC Directive 2006/40 has, since January 2011, capped the GWP of mobile air conditioning (MAC) refrigerant gases used in new car design platforms at 150.

06 | gasworld • February 2014

With a GWP of just 4, Opteon® YF is 99.7% lower than that of R134a and substantially reduces the carbon footprint of the refrigeration system over the vehicle’s lifetime.

As Ruth Leland, BOC’s Sales and Marketing Manager for Refrigerants, said, “We are extremely pleased to offer Opteon® YF across the UK. We are seeing a steady increase

“...manufacturers need to move to a refrigerant with a very low global warming potential”

© BOC

in demand for Opteon® YF as car manufacturers continue to launch new car models or platforms and need to move to a refrigerant with very low global warming potential.”

From 2017, the MAC Directive will apply to all new cars regardless of when

the platform was introduced.

The phase-out of high GWP refrigerants will impact all areas of the automotive sector.

ARTICLE ONLINE The revolution in refrigerant... www.gasworld.com/2002221. article

www.gasworld.com/europe

EUROPE

Air Liquide in Russia 2014 project

Demaco to supply equipment to DESY Demaco, the Dutch specialist

The beginning of 2014 sees Air Liquide open its new production site at Chimgrad – confirmed by the Communication Department of Air Liquide in Russia.

The station for receiving, storing and distributing air separation products is at the final stage of construction, stated Dmitry Kuznetsov, Strategic Projects Director at Air Liquide. According to him, the monthly production amounts to 30,000 cylinders with gaseous food and welding mixtures under the trademarks of Air Liquide Group, as well as medical gases for hospitals.

The investment in the

project amounted to no less than 120 million rubles, Kuznetsov added.

Air Liquide is already operating in Tatarstan. In 2010 the French company opened the first line of its oxygen and nitrogen production plant – with a capacity of 14,500 tonnes per year – in the special economic zone of Alabuga. Last year the second line became operational, which increased the production to 75,000 tonnes per year. Investments in the plant are €35m.

According to Kuznetsov, the production at Chimgrad is the product differentiation and the “further advancement along the added value chain”.

In Kazan, the capital of

the Republic of in cryogenic infrastructures, Tatarstan, has secured two major gases from orders for its cryogenic Alabuga expertise and will be used equipment from the in liquid Deutsches ElektronenInvestments in the plant are cryogenic Synchrotron (DESY) around €35m form for research centre in the delivery of Hamburg, Germany. compressed gases The €7m contract will see in cylinders.

Demaco provide liquid helium Air Liquide has seven sites (LHe) transfer lines and other in Russia, including Alabuga. associated equipment.

One more production site DESY is a national research will be opened in 2014 in centre in Germany operating Balakovo, Saratov region. particle accelerators used It will reportedly deliver to investigate the structure oxygen, nitrogen and argon. of matter. The institute is

News of UK CCS project welcomed

New Germany site for Oxymat Group

ITM Power in ‘first’ Government order

UNITED KINGDOM

GERMANY

UNITED KINGDOM

Scottish Carbon Capture & Storage (SCCS) has wholeheartedly welcomed the announcement of a ready and waiting Front End Engineering and Design (FEED) study contract for the White Rose commercial-scale CCS electricity project.

The news came via the UK Department of Energy and Climate Change (DECC).

The announcement of a FEED study contract for the Peterhead CCS project is also expected shortly. Both projects will draw on the UK’s leading research expertise in CCS and proven engineering skills base.

Danish oxygen and nitrogen generator systems manufacturer Oxymat Group has opened a new branch in Germany, a market that it describes as a ‘sleeping giant’.

Oxymat GmbH is located near Munich and forms part of the group’s strategy to become the preferred PSA manufacturer in the marketplace. Expansion and local presence are cited by Oxymat as ‘vital’ factors in achieving this goal.

The company also revealed that Oxymat GmbH will be run by two competent sales managers in Franz Nesslauer and Michael Obeser.

ITM Power has received its first order for an electrolyser plant from a UK Government Agency. The electrolyser reference plant is based on ITM Power’s HPac platform and the contract was won in a competitive tender process based on price, performance, compliance and delivery time.

ITM Power, since completion and delivery of the well documented Thüga plant in Frankfurt, Germany, currently has £4.2m of equipment being manufactured. All of which is funded by both commercial sales and grant-funded collaborative projects.

RUSSIA

€35m

“The station is at the final stage of construction...”

the main shareholder of the European X-ray Free Electron Laser facility (XFEL).

The purpose of the XFEL project is to produce high intensity coherent X-rays with true laser properties.

The X-rays will be produced by free electrons accelerated to energies of around 17.5 GeV – accelerated by 1.3 GHz superconducting 9-cell cavities cooled down to a temperature of 2K (-271ºC).

Eight of these cavities, together with one superconducting magnets assembly, are placed inside a cryostat and create one accelerator module. A total of 100 accelerator modules are required, installed in a 2km underground tunnel.

Demaco will design and deliver a large part of the cryogenic infrastructure facilitating the cooling of the accelerator modules, responsible for the design, engineering, manufacturing, testing, installation, and certification. Equipment will include LHe transfer lines.

February 2014 • gasworld | 07

EUROPE Future aims revealed at investors day event Air Liquide provided a detailed statement outlining how the business has performed in the past and predicted how it will up until 2020 at a recently held investors day.

Over the 2011-2015 period, the group expects average annual growth in revenues of 5-7%, adjusted for currency impacts, outperforming the average annual growth forecast for the industrial gases market by around 1-2%.

Over this same period, Air Liquide is committed to generating substantial cumulative efficiencies, an objective increased at the beginning of the year by 30%, to €1.3bn, as well as to pursuing its adjustment programmes and reinforcing its competitiveness.

This sound management approach is being accompanied by the rollout of an investment programme worth €12bn between 20112015, designed to lay the groundwork for mediumterm growth.

Looking towards 2020, Air Liquide will continue to capitalise on the strength of its core business and its financial structure, as well as on development initiatives intending to achieve average annual revenue growth of between 6% and 9%, excluding currency impacts. The group also intends to leverage its leadership positions in the world’s major industrial basins, its patented technologies and its competitive solutions and services.

08 | gasworld • February 2014

New oxygen GENIE® cylinder proves a hit in UK railway trials UNITED KINGDOM

BOC’s new oxygen GENIE® cylinder has proven to be a great success for railway engineers after it was tested in months of trials with UK based company Network Rail.

The GENIE cylinder has been a great success for railway engineers who need to carry out aluminothermic welding activities and or cutting work within the rail infrastructure. Often the engineers need to carry a cylinder of compressed oxygen through difficult strategic access points, sometimes at night, to allow access to the infrastructure.

Aimed at mobile gas users who need to manoeuvre cylinders into hard-to-access

or off-grid locations for applications such as welding, heating or cutting, or for security cameras, task lighting or environmental monitoring, the new O2 and H2 GENIE range is now available in the UK from BOC. The launch of the new range of GENIE for compressed O2 and H2 gas follows the successful introduction of the first phase

© BOC

of GENIE cylinders, for the inert gases nitrogen and argon, last year.

Engineers and managers from Network Rail have been trialling and testing the O2 GENIE over a four month period at various locations throughout the UK. They subjected the GENIE cylinder to a wide range of extreme locations and temperature changes, and also incorporated various processes that Network Rail uses to weld and repair rail defects. The trial has concluded that the cylinder meets the primary requirements for manual handling and production issues. It also reduces wear and tear on the vehicle fleet, BOC added.

HyGear signs up to bio-based consortium

Breaking new ground in gas detection field

Alliance broadens service offering

NETHERLANDS

UNITED KINGDOM

UNITED KINGDOM

HyGear has reinforced its sustainability credentials with the news that it has become a member of the Bio-based Industries Consortium (BIC).

The consortium brings together more than 60 European large and small companies, clusters and organisations, all of which have committed to collaborative research, development and the demonstration of biobased technologies in Europe.

HyGear will contribute to its expertise in on-site (V) PSA technology, gas cleaning, upgrading and conversion.

Gas detection specialist Crowcon has celebrated the official ground-breaking of its new 40,000 square foot facility at the prestigious Milton Park in Didcot, UK. Having outgrown its current headquarters in Abingdon, the Milton Park facility will house all existing functions as well as provide extensive customer training and product demonstration facilities, an additional 30% of manufacturing space and a full service calibration laboratory.

Completion and relocation is anticipated during Q4 2014.

Cambridge Sensotec has teamed up with Phoenix Alarms & Safety Services Ltd, enabling the company to offer customers a comprehensive fixed gas detection installation and commission service.

This latest service includes national coverage, consultation, maintenance and calibration schedules designed specifically around customers’ applications and environments. Elsewhere, Cambridge Sensotec also announced the manufacture of its 2,000th Rapidox gas analyser in November (2013). www.gasworld.com/europe

Services Industrial goods

Industrial gases

Healthcare

Engineering

The SIAD Group SIAD is an international Group and a leader in the industrial gases sector.

Founded in Bergamo in 1927, it is present in Europe and throughout the world with production sites, sales subsidiaries and service centres.

The SIAD Group has been involved in the industrial gases business for more than 85 years and it is also present in the engineering, healthcare, services and industrial goods sectors.

For further information: www.siad.com

SIAD Group.

Industrial gases, Engineering, Healthcare, Industrial goods and Services.

www.siad.com

AMERICAS

Long-term asset management deal signed UNITED STATES

DataOnline has completed the signing of a long-term large-scale global licensing agreement for its flagship on-demand service, DOLV3, with a fortune 500 company.

Over 10,000 of existing monitored assets from the customer’s legacy system will be ported to DOLV3 and DOLV3 will interface to the customer’s internal systems, which includes SAP. DOLV3 will support users in over 13 languages to cater for the customer’s numerous international business units and worldwide nature of their asset base.

Over the term of the contract the agreement has provision for the further installation of monitoring equipment and a subsequent monitoring service for tens of thousands of the customer’s assets on a global basis.

DataOnline CEO Martin Adams commented, “This agreement validates that our DOLV3 on-demand service is a truly global platform that can cater to a diverse set of international users.”

“The winning of this contract in a highly competitive M2M marketplace and to serve a

Praxair announces new CO2 purification facility UNITED STATES

Praxair, Inc has announced the start-up of its new carbon dioxide (CO2) purification facility at the Honeywell Resins & Chemicals site in Hopewell, Virgina.

Under a long-term agreement, Praxair will purchase CO2 from Honeywell Resins & Chemicals, one of the world’s largest producers of nylon 10 | gasworld • February 2014

resin and caprolactam, a critical feedstock used for nylon production. The agreement further expands Praxair’s business relationship with Honeywell.

The new facility purifies and liquefies up to 450 tonnes per day of CO2, a by-product of the production process at Honeywell’s caprolactam facility. The CO2 supply will help Praxair serve customers in a variety of

“...we look forward to adding more clients with large-scale asset bases to our platform” fortune 500 company shows that DataOnline is truly a leader in the M2M ASP space and we look forward to adding more clients with

industries, including food and beverage, where it is used to freeze, chill, preserve and package food and carbonate beverages. It is also used in the healthcare, oil recovery, metal fabrication, chemicals and wastewater segments.

“This world-class CO2 facility is further expanding Praxair’s capacity in the region and creating growth opportunities across the Mid-Atlantic States, including beverage carbonation,” said Kevin Foti, Vice-President of Carbon Dioxide for the US industrial gases business, and President of NuCO2 (acquired

large-scale asset bases to our platform in the near future.”

DOLV3 is a multi-tenant hosted solution that is accessible anywhere in the world via a web browser. It provides the tools to deploy, configure and manage DataOnline and third party remote devices and hosts a range of industry specific applications to help companies manage their remote assets.

DOLV3 is directly connected into many of the world’s leading telecom carriers and is providing the pipeline to connect to, and manage, devices in over 65 countries across the world.

DOLV3 has built in connectivity to interface to enterprise systems, such as SAP, and is providing the back-end data feeds necessary to fuel customers’ mission critical supply chain and asset management solutions.

by Praxair last year).

“Praxair’s shared focus on improving operational performance makes this initiative a perfect fit for our operations,” said Qamar Bhatia, Vice-President and General Manager of Honeywell Resins and Chemicals. “This new plant and our long-term agreement is a win for both companies,” Bhatia added.

“This new plant and our long-term agreement is a win for both companies...” www.gasworld.com/americas

Is the hydrogen revolution upon us?

Cryogenic tanks

Evolving the cold converter Page 58

Stuart Radnedge asks, is the world ready for the hydrogen revolution? Page 28

New England ASU plans for Airgas UNITED STATES

Airgas has announced plans to expand its atmospheric gas production capacity in New England by building a second air separation unit (ASU) in Bozrah, Connecticut.

It is understood this is in order to meet the expected increase in demand for merchant gases across its diverse customer base in the region. The ASU, which will produce oxygen, nitrogen, and argon, will be operated by Airgas Merchant Gases and is expected to begin production in the fall of 2015.

“The market for atmospheric gases is expected to continue to grow in New England, particularly in the medical, laboratory, high-tech and food industries,” said Michael L. Molinini, Airgas President and CEO. “Now is the right time to add to our production capabilities in order to meet the growing merchant gas needs of our current and future customers in the region,” he added.

As one of the nation’s

leading suppliers of supply contracts with other industrial, medical, and gas producers. specialty gases, Airgas “We will operate the currently produces oxygen, new plant alongside our nitrogen, and argon through existing one in Bozrah,” its 16 air separation units said Tom Thoman, Airgas nationwide, making it the Division President – Gases fifth largest producer of Production. “This will not atmospheric gases in North only substantially increase America overall. our presence in the region The company’s proposed but also enhance the security plant in Bozrah will produce of our supply by having dual more than 600 tonnes per production facilities.” day (tpd) of oxygen, nitrogen, According to Thoman, and argon and will bring Airgas Merchant Gases Airgas’ total capacity at the commissioned Airgas’ site to over 1,600 tpd. newest ASU in Clarksville, The company Tennessee, which also purchases began producing atmospheric atmospheric gases under gases in May The proposed plant will long-term 2012 and is produce more than 600 building a new tpd of oxygen, nitrogen ASU in Minooka, and argon Illinois, set to be onstream in summer 2015.

In addition to gases, Airgas is a leading supplier of a wide range of hardgoods, including welding equipment and related products, safety products, and tools and supplies for construction and maintenance, repair, and operations (MRO).

600

Quotes of the month

“This additional supply source will further strengthen our liquid CO2 network and provide enhanced supply reliability...”

“We are happy to expand our growth in Foshan area to further participate in the progress of transition of the local economy”

“Right now we obtain about 25% of our helium from Qatar, that will rise to about 30% and I think it may go higher in the future”

Nelson Squires Vice-President Air Products

Werner Hickel CEO Messer China

Thomas Blade Member of the Executive Board The Linde Group

AMERICAS North American deal for Burckhardt Burckhardt Compression has won an order for the supply of two of the company’s products in North America.

One of the ordered items is a Process Gas Compressor at the upper performance range as Booster/Primary Compressor, the other being a Hyper Compressor for the customer’s LDPE production plant in North America.

With this order, Burckhardt Compression underlines its position as the global technology leader for Hyper Compressors and supplier of the largest Process Gas Compressors (API 618) with a maximum rod load of 1,500 kN (335,000lbs).

Delivery of the compressors is understood to be taking place in the second quarter in 2015.

Burckhardt Compression has also since secured a further order to deliver one Process Gas Compressor API 618 for acid gas injection in North America, to supply the compressor system completely modularised and ready to bolt up at the site, also in 2015.

Advanced Cryogenics Ltd Your source for all forms of CO2 related expertise, from market and project feasibility to process and economic evaluations Work is performed globally; and quality references are available.

Please contact Sam A. Rushing, a 30 year veteran in the industry, with a great deal of expertise in all CO2 source types.

Call us on +01 305 852 2597, or visit us at www.carbondioxideconsultants.com Email: rushing@terranova.net

February 2014 • gasworld | 11

AMERICAS

Expansion at M2M solutions company Asset management provider FreeWave Technologies is expanding with the addition of more than 20 resellers and systems integrators in the Asia-Pacific, Middle East, Latin America, Eastern Europe and China.

The company, a provider of secure M2M wireless networking solutions, is developing its international footprint having previously operated only in North and Latin America.

The expansion was kicked off in November (2013) with a week-long training session at FreeWave’s headquarters in Boulder, Colorado and attendees hailing from 16 countries across these regions. The company continues to make significant investments in its future through increased research and development, its newly expanded headquarters, and now by taking its award-winning, secure M2M wireless networking solutions to countries where critical infrastructure development is a top priority.

Ashish Sharma, CMO of FreeWave Technologies, explained, “FreeWave’s solutions are the perfect fit for these environments because reliable data transmission – that is both secure and proven – is a key requirement for organisations that develop critical infrastructures.”

RELATED ARTICLES An introduction to... Asset management software www.gasworld.com/2002982. article

12 | gasworld • February 2014

Liquid CO2 facility to be built at ethanol production site in Iowa said Brian Cahill, President Nelson Squires, Vice-President and General Manager of North and General Manager, SIRE. Air Products has signed a “Ethanol plants are an American Merchant Gases at long-term agreement for the important source of liquid Air Products. “This additional production of liquid CO2 with supply source will further CO2 in the Midwest, and we Southwest Iowa Renewable strengthen our liquid CO2 look forward to Air Products Energy (SIRE). network and provide enhanced beginning production at our A facility to produce 400 plant in Council Bluffs and supply reliability to our food tonnes per day (tpd) of liquid providing the liquid CO2 coand beverage, as well as our CO2 at SIRE’s established industrial bulk gas customers in product that will help serve the ethanol production facility in the Midwest.” needs of the many large users Council Bluffs, Iowa, will be When on-stream, the facility in the region.” constructed by Air Products – will increase the number of Air In June (2013), Air with construction on the plant Products’ liquid Products expanded its expected to begin in early 2014. CO2 production portfolio of industrial Air Products will also market plants in the gases offerings in food and beverage-grade liquid US to 13.

North America by Air Products will CO2 from this new plant. acquiring EPCO “We are construct a 400 tpd “Following the EPCO Carbon Dioxide excited to liquid CO2 unit at SIRE’s acquisition last summer, Products, Inc. of expand the ethanol facility we have been focusing our Monroe, Louisiana. portfolio of coattention on expanding our The acquisition vaulted products produced presence in the Midwest Air Products to a leadership from our 125 million and this project helps us in position in the North gallon per year ethanol plant achieving that objective,” said American liquid CO2 market. through this new agreement,” UNITED STATES

400

Senior leadership changes at Praxair

Linde Canada opens store and showroom

Airgas set to increase helium prices by 20%

UNITED STATES

CANADA

UNITED STATES

Praxair has made changes to its senior leadership team, effective January 2014.

Anne Roby is promoted to Senior Vice-President, with responsibilities including Global Supply Systems and R&D. John Panikar becomes President of Praxair Asia, and Executive Vice-President Eduardo Menezes will have responsibility for Europe, Mexico and South America.

Executive Vice-President Scott Telesz leads US atmospheric gases, Canada and Praxair Surface Technologies.

Linde Canada Limited has opened a new retail store in Québec. The store features a large showroom displaying Linde’s extensive line of safety, cutting and welding supplies.

“We are very excited about our new retail location,” said Marc Clermont, Retail Manager-East and Central Québec. “It brings Linde products and services closer to the rapidly growing market in Eastern Canada.”

The showroom also gives ample space to Linde’s broad line of safety products.

Airgas has announced plans to increase prices on helium by 20%, on average, effective immediately or as contracts permit. Some price increases may differ based on specific market conditions or contractual provisions.

The company explained that the pricing action comes in response to the rising crude helium prices being charged by the Bureau of Land Management (BLM) to helium refiners – which have in turn driven up the cost of pure helium from suppliers. www.gasworld.com/americas

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ASIA-PACIFIC

Oxymat is tapping into the ‘huge potential market’ in the healthcare sector in South East Asia with a new oxygen supply contract in Myanmar. The company secured a deal to supply oxygen plants with cylinder filling stations to four hospitals in Myanmar in November (2013).

This meant the company became the first to install such a quantity of oxygen plants and restart business in the long-isolated country.

That’s according to the group’s December 2013 newsletter, which cites the economic and medical gas market opportunity in the region. With 60 million inhabitants, Myanmar (Burma) is the largest country in South East Asia and is therefore a highly promising prospect for business. Further, Oxymat cites a Myanmar healthcare sector that, up until 2013, was suffering ‘from over 50 years of neglect’.

With investment in the country’s healthcare sector expected and a network of both public and private sector hospitals that rely heavily on ‘costly cryogenic oxygen’, Oxymat claims it is ‘ready to tap this huge potential market’. The company undertook a visit to Myanmar which revealed new possibilities for the company – and promptly secured this new contract for oxygen plants and cylinder filling stations.

RELATED ARTICLES New Germany site for Oxymat Page 7

14 | gasworld • February 2014

Potential China market in focus CHINA

Bestobell Marine had a great response from delegates at Marintec (3rd-6th December), the largest marine trade show in Asia, where the company demonstrated its expertise in cryogenic valves for international shipbuilding.

The company attended the exhibition in Shanghai alongside its agent Heathlead, as part of its strategy to develop its cryogenic valves business even further within the marine sector in Asia.

Bestobell Marine demonstrated its lifesize DN100 Globe Valve with pneumatic actuator, which gave delegates an insight into the innovative features of the company’s cryogenic valves that are widely used for LNG marine applications across the

world. Duncan Gaskin, Sales Director for Bestobell Marine, said, “This is the second time we have exhibited at Marintec, which was a great show and a fantastic opportunity to showcase Bestobell Marine to the Chinese LNG market.”

“We generated some exciting new sales enquiries and are hoping to secure a

large order very soon for a major LNG carrier project at a leading Chinese shipyard, following discussions that took place at the show.”

Marintec China attracts exhibitors and visitors from across the maritime industry.

It had almost 1,650 exhibitors and over 50,000 visitors during the four day show.

China is at the forefront of developments in the use of LNG in the marine sector, as the Government seeks to convert the Chinese fleet of Yangtze river vessels and coastal ships to burn LNG in a bid to reduce pollution levels.

RELATED ARTICLES

© Bestobell

Oxymat tapping into the Myanmar market

Cryogenic valves for an evolving LNG industry, page 30 An introduction to...Cryogenic valves, page 62

Blast at silicon factory in Japan

Air Liquide now 100% owner of ALWA

Iwatani to build ASU in Indonesia

JAPAN

AUSTRALIA

INDONESIA

At least five people have been killed and at least 12 injured as a result of an explosion at Mitsubishi Materials in Japan.

According to official reports the blast happened on the afternoon of 9th January when, it is understood, maintenance crews were working on a heat exchanger used in the production of silicon products at the plant in Yokkaichi City.

Five from the maintenance team were instantly killed, with 12 to 17 additional people injured because of the incident, varied reports claim.

Air Liquide Australia Limited (ALA) has purchased Wesfarmers Chemicals Energy and Fertilisers division’s 40% interest in the Western Australian-based Air Liquide Western Australia (ALWA).

Air Liquide Australia now owns 100% of ALWA, formed in 1965 as a joint venture between Air Liquide Australia and Wesfarmers to service the Western Australian market.

The business owns and operates an ASU in Kwinana, producing oxygen, nitrogen and high purity argon.

Making an expected investment of ¥1.7bn ($16.2m approx.), Iwatani Corporation is to construct a new cryogenic ASU in Karawang International Industrial City (KIIC), Indonesia.

News of the project came, via The Gas Review, during the company’s Iwatani Welding Seminar in Indonesia 2013 at the end of last year.

The new ASU will be built on the premises of Iwatani Industrial Gas Indonesia (IIGI), with construction set to begin this year. www.gasworld.com/northpacific

ASIA-PACIFIC

Further investment in China for Messer CHINA

Messer Group, the largest owner-managed industrial gas specialist worldwide, has announced plans to invest 60m Yuan (US$10m approx.) in the construction of a new gas plant in China.

The new plant, located at Sanshui Industrial Park in the Guangdong Province of the country, will be equipped with state-of-theart R&D capabilities for the development of specialty gas products, particularly light and calibration gases.

In addition to gas products, the facility will focus its efforts in the development of gas application technologies for China’s burgeoning

industries. These include the needs of high-growth oxygen combustion and markets in Southern China,” water treatment technologies said Werner Hickel, the CEO for the environmental of Messer China. sector, advanced welding “We are happy to expand technologies for the highour growth in Foshan area end manufacturing and to further participate in the automotive sectors, and gas progress of upgrading with preservation technologies transition of the local for the food and beverage economy.” sector, further improving The people’s quality of life.

Sanshui “Innovation has been an important By 2015, Messer will cornerstone for the have invested up to development of Messer $70m in Foshan in the past century. We would like to, by means of innovation, provide customers with gas products and technologies with cost efficiency, higher quality and better service so as to meet

$70m

plant will be Messer’s third gas plant in Foshan and is scheduled to begin operations in the first half of 2015. By this time, Messer’s total investment in Foshan will be up to $70m.

It was only in July 2013 that the group began construction of a new liquid ASU with a capacity of 520 tons per day, as well as a filling station, in Eastern China.

Courtesy of Japan’s The Gas Review

No signs of recovery in Japanese argon demand After it emerged earlier last year that the argon market was in surplus, as December (2013) dawned it seemed that there was still little sign of a recovery in demand.

That’s according to the recent issue of The Gas Review (TGR), which

explains that as the market for silicon wafers is in slump, so too is the demand for argon.

TGR explored the financial closings of two major players in the market and noted that sales of the semiconductor silicon wafer business had declined. Further, it cited figures from SEMI that

silicon wafer shipments in third quarter 2013 were also marginally down in the region, as well as for the period running from January to September.

The reason for this slump is thought to be a structural issue involving the sluggishness in sales of

“The reason for this slump is thought to be a structural issue involving sluggishness in sales of memory.

This, in turn, is attributed to a decrease in demand for PC’s” 16 | gasworld • February 2014

memory. This, in turn, is attributed to a decrease in demand for PC’s.

While the demand for semiconductors for use with smartphones and tablet computers is increasing, the performance per wafer is increasing (due to the finer finishing of devices formed on wafers) and the volume of chips produced has not been growing as previously forecasted. This is another factor in the decrease in demand for argon.

All of which leaves TGR questioning whether there is any recovery in sight for the demand for argon – the gas of the highest value in the air separation process. www.gasworld.com/northpacific

MIDDLE EAST Plans ahead for venture in Oman Air Products and Takamul Investment Company, a subsidiary of the Oman Oil Company, have signed a joint venture (JV) agreement to establish an integrated industrial gases venture.

The partnership will become a one-stop provider for a full range of industrial gases such as hydrogen, nitrogen and oxygen for all customers in the Special Economic Zone at Duqm (SEZAD), Oman.

The JV will support the economic development of the Special Economic Zone at Duqm and will enhance its competitiveness to attract further industrial investments. It will also aim to deliver the highest operational excellence by leveraging Air Products’ world-class capabilities in large industrial gas plant design, pipeline infrastructure development and operational know-how, as well as Takamul’s strong multi-utility infrastructure position in Duqm, via its Centralised Utility Company.

Commenting on the formation of the new JV, Thomas Wendahl, Regional Vice-President of Air Products – Middle East, said, “This new joint venture will truly be of mutual benefit. It will help to strengthen Air Products’ presence in Oman, enabling the growth of our business in the emerging industrial area of Duqm, while complementing Takamul’s investment portfolio in Oman with the addition of a commercial stake in industrial gases.”

18 | gasworld • February 2014

© RasGas

Major shift as RasGas officially inaugurates new Qatar II plant QATAR

RasGas has inaugurated its second helium operation in Qatar, known as Helium 2 and marking an important shift in the make-up of the global helium market.

The development represents the world’s largest helium plant coming on-stream in the Middle East and reinforces the trend for helium sources moving away from their traditional base in the US. Further, gasworld understands from senior sources that, as of October 2013, Helium 2 was running at close to full capacity with a reported utilisation rate of 95%.

The inauguration took place at the Katara Cultural Village in Doha, Qatar, under the patronage of Qatar’s Prime Minister and Minister of Interior, His Excellency Sheikh Abdullah Bin Nasser Bin Khalifa Al Thani. The official inauguration of the plant was carried out by the country’s Minister of Energy and Industry, His Excellency Dr Mohammed Bin Saleh Al Sada.

The event was also attended by Hasmad Rashid Al Mohannadi, RasGas’ CEO, as well as senior government officials and senior personnel from Qatar Petroleum, RasGas, Qatargas, ExxonMobil, project shareholders, contracted customers and contractors.

Market shift With Helium 2 on-stream, Qatar is now the largest exporter and the secondlargest producer outright of helium in the world.

The country’s reserves of helium total 360 billion cubic feet, of which RasGas foresees to refine and produce two billion cubic feet per year. The feed gas available from Qatar’s North Field is of comparatively high purity and has a helium content of up to 0.05%.

Hamad Rashid Al Mohannadi, RasGas CEO, commented, “I am proud to say that not only has the Helium 2 project enabled Qatar to fulfil this vision by becoming the largest exporter of helium in the world, but it has done so with the use

of innovative technology, collaboration, operational excellence and an enviable safety record of no lost time incidents throughout.”

Thomas Blade, Member of the Executive Board of The Linde Group, said, “Right now we obtain about 25% of our helium from Qatar, that will rise to about 30% and I think it may go higher in the future.”

With Helium 2 first breaking ground in May 2010, off-take agreements were signed shortly afterwards with Air Liquide, Iwatani Corporation and Linde Group.

Air Liquide will receive 50% of available product, with Linde and Iwatani receiving 30% and 20% of annual production up until 2032. gasworld has learned that utilisation rates were initially considerably lower than 95%, though this was more a result of insufficient feed gas reaching the refinery than any significant problems with the technology. Production has also, on occasion, had to be scaled back as a result of insufficient storage for refined helium product onsite. www.gasworld.com/middleeast

MIDDLE EAST

First helium transfill facility officially open QATAR

Further to plans first announced in June last year, a new liquid and gaseous helium transfilling station has been inaugurated at the Ras Laffan Support Services Area in northeast Qatar.

The inauguration follows the official opening of the Qatar II (Helium 2) helium plant by RasGas, held in the same week (see left, page 18).

Operated under the auspices of Gulf Helium Services, a 51/25/24 joint venture between Buzwair Gases, Iwatani Corporation and LNG Japan Corporation, the new facility enables liquid helium sourced from RasGas’ nearby ‘Helium 2’ plant to be more widely distributed both within Qatar

and around the world.

The site features ISO container logistics and maintenance facilities – and is also the first helium transfill facility in Qatar.

The nearby Helium 2 facility extracts helium from feedgas provided by adjacent LNG facilities. The helium product is allocated 50/30/20 between Air Liquide, Linde and Iwatani.

Akiji Makino, Chairman and CEO of Iwatani Corporation, commented, “Our priority has been to diversify our sources and respond to increased market demand. Importing helium from Qatar is not only significant for our company but for the development of Japanese industry.”

Gulf Cryo celebrates 60th anniversary in style KUWAIT

Gulf Cryo celebrated its 60th anniversary in style recently, by attending the 2013 Formula 1 Etihad Airways Abu Dhabi Grand Prix at the Yas Marina Circuit and also hosting a gala dinner in Kuwait. Guests included shareholders, customers, suppliers, business partners, bankers, friends and family.

Around 200 guests were invited to watch the Formula 1 (F1) event from the Yas Marina circuit onboard a yacht. The three-day celebrations lasted all day

from 1st-3rd November, including all practice and qualifying sessions and the full grand prix race itself.

The company also held a small cake-cutting ceremony while at the event, with a speech given from Chairman Amer Huneidi.

Meanwhile the gala dinner was held a week later on the 10th November at the Hotel Missoni Kuwait. Guests were awed by a sand show presentation, highlighting the story of Gulf Cryo from its inception in 1953 to present day and emphasising the regional scope that the group

Iwatani is the first Asian Company to acquire rights to purchase helium directly from Qatar, and will be provided with some 260 million scfd (8 million Nm3) of helium per year. In order to transport this to end-markets in Japan and other Asian countries, Iwatani needed logistical support close to the helium source in order to fill, maintain and expedite ISO containers from source to end-user markets – hence the new facility.

From Ras Laffan, liquid helium ISO containers are transported to and from the

“...the new facility represents an important step in Buzwair’s further expansion”

Jebel Ali Port within the Jebel Ali Free Zone in the United Arab Emirates (UAE). From here, the ISO containers are distributed to Asia and beyond. Beyond facilitating logistical support for bulk liquefied helium, the Gulf Helium Services project also handles compressed and dewar quantities of helium for distribution in local markets.

Buzwair Gases was identified early on as an ideal partner with which to set up an effective and competitive logistics chain. As the lead party in the venture, the new facility in Ras Laffan represents an important step in Buzwair’s further expansion in Qatar and the Middle East region, and its range of products and services.

© Gulf Cryo | Events marked 60 years of business for Gulf Cryo, in style.

has reached.

Huneidi welcomed guests and thanked all key stakeholders for their continued support, commenting, “Even though the region had its political and economic ups and downs, we were determined to grow in our region and as of today, Gulf Cryo operates in 11

countries with 30 production and distribution sites.”

“Our ability to respond quickly to changes in the market, creating new opportunities for long-term growth, and make the strategic investments necessary to increase our competitiveness over the long-term are the reasons behind our success.”

February 2014 • gasworld | 19

Moisture detection analyser launched Tiger Optics has developed a new ammonia analyser that refines the detection of moisture to levels down to 2 parts per billion, achieving five times the sensitivity of incumbent technology.

The new ALOHA+ H2O analyser is available from 1st January (2014). Just three years ago, Tiger introduced its original ALOHA-H2O analyser for the fast-growing High Brightness Light Emitting Diode (HB-LED) market. With that, Tiger met the industry’s need to detect moisture in ammonia at levels to 10 ppb, as higher concentrations impair the electroluminescent intensity of HB LEDs and diminish process yields. This directly affects profit margins as brightness determines whether an LED finds use in a flat screen TV or is relegated to the nose of a child’s toy.

With the new ALOHA+ H2O, Tiger Optics continues to address the ever more exacting needs of HB-LED makers, tool manufacturers, purifier makers and the gas companies that supply ammonia – the favoured source of nitrogen for the production of Gallium Nitride (GaN) semiconductor wafers, a key component of HB-LEDs. A multi-point analyser, the ALOHA+ H2O can monitor dual streams and features proven, powerful laser-based technology. Used in remote locations, where skilled technicians and support services are hard to come by, Tiger’s products require little maintenance and are easy to install and operate.

00 | gasworld • February 20 October 2013 2014

New online gas analyser from Dansensor

© Dansensor

TECHNOLOGY

Dansensor, a MOCON company, has launched a new online gas analyser for modified atmosphere packaging (MAP) equipped thermoforming and traysealing machines.

The new Dansensor MAP Check 3 Vacuum now offers food packagers around the world increased process control and traceability data to help support the latest food safety protocols. The new gas analyser is ideal for a wide variety of modified-gas food packaging applications including meat, poultry, fish and baked goods.

“To help meet more stringent food safety objectives, it is becoming

increasingly important for processors to be able to trace data long after the package has left the plant.

The upgraded connectivity, and continuous data logging provided by the MAP Check 3 Vacuum, keeps residual oxygen – and optionally carbon dioxide – records of every package produced,” said Karsten Kejlhof, Sales and Marketing Director at Denmark-based Dansensor.

“It does so in real-time, keeping up with high-speed lines without the need to remove the package for manual, destructive testing.”

The MAP Check 3 Vacuum

continuously measures the gas content of packages before they are sealed. Through a user-friendly touchscreen, the operator can create individual programmes for each product. The new unit replaces Dansensor’s previous vacuum and gas flush analyser, the CMV-2.

The new unit (pictured) can be seamlessly integrated with Dansensor’s compact MAP Mix Provectus gas mixer.

Air Liquide ‘first’ for medical oxygen

Pipeline regulator delivers performance

MOCON launches oxygen test system

CYLINDER

REGULATOR

TEST INSTRUMENT

Air Liquide has reaffirmed its presence in the medical oxygen cylinder industry with a ‘true first-to-the market’ cylinder with a digital gauge – the Intelli-Ox™.

The Intelli-Ox™ is a combination of Air Liquide’s size 5 (‘E’) aluminium cylinder with a built in brass pressure regulator – coupled with its patented digital gauge and an ergonomic handle.

Air Liquide also launched a European version of the cylinder, complete with integration of a digital time intelligent pressure indicator.

CONCOA has introduced a new industrial pipeline regulator designed to exceed heavy heating and cutting pressure and flow needs.

The 9940 series industrial regulator incorporates a new high-flow encapsulated soft seat, which has a low cracking pressure. This, coupled with a large orifice size, enhances the safety and productivity of low-pressure fuel gases.

Compliant with CGA pipeline inlet and outlet connections, the 9940 series offers enhanced visibility for fuel, oxygen and inert gases.

MOCON has developed a new oxygen transmission rate test instrument which accurately and repeatedly measures barriers up to 10 times lower than previous levels.

The OX-TRAN® Model 2/21 10x system measures films or packages at precise temperature and relative humidity conditions. It is ideal for a variety of applications seeking an increasingly better oxygen barrier.

Improved material barrier systems have in turn created a demand for increased testing sensitivity, MOCON explains.

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February 2014 • gasworld | 21

HYDROGEN Air Liquide in France fuel cell first

McPhy achieves success with its world first hydrogen system

Air Liquide has obtained the keys to the first two Fuel Cell Electric Vehicles registered in France.

The cars are hydrogenFRANCE powered and have a range close to 600km, and have McPhy Energy recently only one emission – water. presented the world’s first Delivery of two of the first system coupling an industrialmass-produced fuel cell scale hydrogen generator with electric vehicles represents a 100kg solid hydrogen an important landmark in storage unit. the development of the The demonstration, which hydrogen energy industry. showed the results of the first Highly involved in this phase of the French PUSHY field, Air Liquide wanted programme, was given at to be the first to use these the company’s headquarters vehicles in France. Its in La Motte-Fanjas, in the hydrogen filling stations department of the Drome, can fill the vehicles’ tanks France. While such systems in under five minutes; enable the supply of onsite this high-performance hydrogen for industry, they technology is already safe also assist in the transition to and available. renewable energies, enabling Used in a fuel cell, approaches such as powerhydrogen combines with to-gas and hydrogen mobility oxygen in the air to produce to become technical and electricity, with water as the commercial realities. only by-product. Hydrogen can be produced from various energy sources, Fuel cell cars to including natural gas. provide opportunity With Blue Hydrogen, Air Liquide has undertaken UNITED STATES to produce 50% of its hydrogen for hydrogen HyperSolar is evaluating energy applications from commercial methods for renewable sources. onsite hydrogen production at Hydrogen therefore has distribution points or fuelling huge potential for providing stations, to meet the expected clean energy and secure demand created by the launch supply. Air Liquide is of fuel cell cars next year. present across the entire Hyundai, Honda, Toyota hydrogen energy and other manufacturers chain, from plan to introduce hydrogen production fuel cell cars this year. through HyperSolar is focused The cars are hydrogento highon developing a low-cost powered with a range pressure and submersible hydrogen close to 600km storage, fuel production particle that can cells, and split water molecules under hydrogen filling stations. the sun, like photosynthesis.

600

00 | gasworld • February 22 October 2013 2014

The McPhy Energy technology for storing hydrogen in the form of hydrides is a safe, low-pressure, high-density solution. The generator, which produces hydrogen through the electrolysis of water, is manufactured by McPhy Italy and powered by 60KW of electricity from the local electrical grid. The demonstrator can produce 12m3 of hydrogen per hour. The gas is then stored in McPhy’s HDS 100 system, which is based on magnesium hydride technology developed and manufactured by McPhy Energy in La Motte-Fanjas.

The system inaugurates the first commercial product line for onsite industrial hydrogen users worldwide. This first model, which has a storage capacity of 100kg, is the first in a

commercial range reaching up to 500kg of stored hydrogen (16.5MWh).

“The pilot presented at our manufacturing site in La Motte-Fanjas is the first deliverable of the PUSHY project. In 2014, it will be followed by a demonstration of hydrogen production by hydroelectric energy, for the storage and exploitation of renewable energies in France as in Europe and across the globe,” said Pascal Mauberger, CEO of McPhy Energy.

© McPhy Energy

Injection of hydrogen in German gas grid

Fuel cell range extenders for FedEx

GERMANY

UNITED STATES

ITM Power, together with its partners in the project, has injected hydrogen into the German gas distribution network. The ITM Power rapid response electrolyser plant has been commissioned ahead of schedule, with compliance and permitting work completed to enable the incorporation of hydrogen via the compliant mixing plant.

By the end of 2016, the partners will have gained valuable experience of how the system works under realworld conditions.

Plug Power has signed a deal with FedEx to develop fuel cell range extenders for the company’s express electric delivery trucks.

This will allow the trucks to nearly double the amount of territory they can cover in one charge. The project is funded by the US Department of Energy and includes partners FedEx Express, Plug Power and Smith Electric Vehicles.

The resulting hybrid vehicles will be powered by lithiumion batteries and a 10KW hydrogen fuel cell system. www.gasworld.com/hydrogen

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February 2014 • gasworld | 23

LNG

LNG to be available in Germany by 2015 GERMANY

Plans for building and operating two terminals in Hamburg and Bremerhaven, the future hubs of the German coastal LNG supply, have come to maturity.

Currently, Bomin Linde LNG is finalising preparations to enable the manufacturing of the key parts and prompt construction of the LNG facilities. The terminals will be installed on a modular basis and will have sufficient flexibility to quickly meet a rise in demand. Starting from the strategic hubs of Hamburg and Bremerhaven, neighbouring ports such as Kiel, Lübeck, Rostock or Wilhelmshaven can be reliably

success of this economically attractive and green fuel.”

“An LNG terminal in Hamburg is key for the longterm sustainability of the port – both from an economic and ecological point of view,” commented Jens Meier, CEO of the Hamburg Port Authority (HPA).

Bomin Linde LNG is also able to provide LNG for the marine industry beyond Germany’s borders. For example, at the terminal in Nynäshamn next to Stockholm, Sweden, built by The Linde Group.

“An LNG terminal in Additionally, Bomin Linde LNG envisages supplying LNG Hamburg is key for the at a new bunkering terminal in long-term sustainability Rotterdam, The Netherlands, of the port” where the approval request has

supplied with LNG. “We are fully on track with the projects and will be able to provide ships in all German ports along the North and Baltic Sea with LNG as a clean fuel,” said Bomin Linde LNG Managing Director Ruben Benders.

“This is an important step to establishing LNG as a marine fuel,” added Mahinde Abeynaike, also Managing Director of Bomin Linde LNG. “The shipping industry needs secured supply of LNG at ports. This is crucial for the

already been submitted to the authorities. Moreover, Bomin Linde LNG is considering several bunkering facilities at additional international ports to expand the development of the LNG infrastructure.

Starting in 2015, sulphur emission limits for ships operating in North and Baltic Sea will be reduced drastically.

LNG as a transport fuel will reduce emissions of sulphur oxides, nitrogen oxides, particular matter and CO2.

RELATED ARTICLE Sea change Environmental regulations mean that shipping operators will have to radically rethink how they power their vessels. Helen Carmichael looks at the rise of LNG bunkering. Page 46

GERMANY

Starting immediately, international logistics company HOYER is to use 40-foot containers for the transport of liquefied natural gas (LNG).

The new containers are ideal for this type of transport and offer enhanced safety and economy, while also expanding the HOYER portfolio and enabling it to position itself for future market trends.

HOYER’s newest 40foot and longer tanks are distinguished by the fact that not only the inner tank 00 | gasworld • February 24 October 2013 2014

is completely made from stainless steel, but this is also true of the outer tank, parts of the frame and the pipe connections as well.

Even though these are great preconditions for the safe transport of LNG, risk management studies about the transport of dangerous goods are being conducted on a regular basis.

The ISO tank containers can hold at least 46m³ and they can be outfitted with a special pumping system and a measuring section. While the pump achieves faster unloading due to its higher exit pressure, the measuring

© Hoyer

HOYER expands its gas container fleet

section allows precise measurements of the content.

Just last year HOYER massively expanded its global gas logistics business and by the middle of 2013, had increased its fleet to about 1,000 units of 20, 30 and 40foot tank containers.

“Demand for gas containers for the transport of LNG is rising,” said Jürgen

Schlötelburg, Director Gas Equipmentpool and Development. “The reasons for this are the changed extraction and delivery structures of natural gas, among other things.”

The transport of LNG in a tank container is both flexible and complements the conventional means of transport via pipelines. www.gasworld.com/lng

LNG distribution

LNG

Sea change

Small-scale supply, big opportunities Page 36

Helen Carmichael looks at the rise of LNG bunkering Page 46

Job creation in Canada from LNG CANADA

The government is supporting FortisBC’s investment of up to $400m in the expansion of the Tilbury liquefied natural gas (LNG) facility that will create over 300 person-years of jobs and economic development in the province.

The news was announced

by Bill Bennett, Minister of Energy, Mines and Minister responsible for Core Review.

The government is exempting FortisBC’s expansion of its Tilbury LNG facility from a certificate of public convenience and necessity review by the BC Utilities Commission (BCUC).

The facility, located on Tilbury

out of the way and allow the Island in Delta, has been used transportation fuel component for natural gas storage since of the LNG industry develop 1971. It takes natural gas from quickly.” the pipeline during periods of “This $400m investment low demand and converts it into a liquid that can be stored. in FortisBC’s Tilbury LNG facility will build B.C.’s market This exemption positions FortisBC to begin construction place for the world’s cleanest fuel, LNG, and of an expansion that create over 300 will provide LNG person years of to transportation employment customers as a in the Lower cleaner alternative The new facility in Mainland.” to diesel.

Canada is set to provide The facility LNG fuel by 2016 is expected to be providing LNG fuel by mid-2016. Bill Bennett, Minister of Energy and Mines and Minister Responsible for Core Review, said, “Government wanted to get

2016

More sign up for dual fuel concept Another haulage firm from the UK has invested in a greener future by unveiling plans to utilise the benefits of having vehicles that can operate on a dual fuel engine.

Earlier this year gasworld visited DHL’s distribution centre for the inauguration of the company’s new dual fuel fleet of vehicles and LNG refuelling pumps – provided

by BOC. It has since been announced that BOC is also teaming up with the logistics specialists Stobart Group.

BOC and Stobart Group welcomed Jon Horsley, from the UK’s innovation agency the Technology Strategy Board, to Eddie Stobart’s new LNG refuelling station near Warrington, Cheshire.

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February October 2013 2014 • gasworld | 00 25

INTELLIGENCE

intelligence

Vietnam: Rising gas intensity, a nascent onsite business From gasworld Business Intelligence number of clients within the steel, electronics and float glass industries. There is also a strongly growing merchant market for bulk and packaged gas. By end-use sector, the metallurgical industry accounted for the greatest proportion of industrial gas revenues, generating approximately 32% of total sales in 2012. This is mostly related to sales of bulk oxygen, nitrogen and argon in support of various steel producing and fabrication sites.

Going forward, gasworld Business Intelligence believes the introduction of more advanced applications will continue, while the proliferation of supply

scheme contracts will be sustained in support of a larger variety of industries. In the 2012-2020 period, accordingly, forecast models predict growth from 8.9% p.a. in a low scenario to 11.4% p.a. in a high scenario.

New supply required in LNG market

Keeping pace: Sub-Saharan Africa growth

11.5% PIRA Energy Group

New York-based PIRA Energy Group believes that a tightening LNG market is in need of new supply. According to the group’s weekly natural gas, power and coal market recap, this will likely be scant in the year to come.

Over the past year, 11 new LNG import terminals have opened and while import capacity does not equal full utilisation, many buyers are starting to draw on previously signed contracts or the spot market, thereby tightening the pool of available supply.

26 | gasworld • February 2014

2002

$166m

large. The rise in industrial gas intensity over the last decade has been significant – consistent with an economy that is not just growing in width, but also in depth. The commercial industrial gases market in Vietnam is estimated to have generated revenues of $166m in 2012. This is up from $29m in 2002; an impressive average annual growth rate of 16.8% for the decade.

The international companies operating in the country have seen some success in establishing a nascent onsite business in Vietnam, with supply scheme contracts signed with a growing

$29m

Renowned for its high economic growth rates since the turn of the century, Vietnam is naturally gaining considerable attention from an industrial gases industry keen to realise the potential of emerging economies.

The Vietnamese economy grew at an average rate of 7.1% p.a. between 2002 and 2012.

Since the 1980s the economy has transitioned rapidly from a poorly performing centrally planned communist marketplace to a dynamic, export-oriented, rapidly modernising entity.

The industrial gas sector in Vietnam has been able to achieve even higher levels of growth than the economy at

2012

From International Monetary Fund (IMF) Global headwinds have moderately lowered subSaharan Africa’s growth in 2013, but the pace is expected to pick up again in 2014.

That’s according to the October 2013 issue of the International Monetary Fund’s Regional Economic Outlook: Sub-Saharan Africa (REO).

Strong investment demand continues to support growth in most of the region, with output projected to expand by 5% in 2013 and 6% in 2014.

Growth is backed by continuing investment in infrastructure and productive capacity. This outlook is not as strong as portrayed in the May 2013 edition of the REO publication, reflecting, in

part, a more adverse external environment as well as diverse domestic factors.

Inflation is expected to maintain its downward trend for a third consecutive year, toward less than 6% by end2014, says the report. Most of the major risks to the outlook for the region stem from external factors; further weakening in emerging market economies, including some of sub-Saharan Africa’s new economic partners, or in advanced economies could affect prospects for growth.

Domestic risks, such as those related to weather and other supply-side shocks or political events, pose important risks to individual

countries and perhaps their immediate surroundings, but are less of a threat at the regional level.

“Growth is backed by investment in infrastructure...”

6%

The latest regional IMF report projects output to expand by 6% in 2014.

www.gasworld.com/intelligence

INTELLIGENCE

Global carbon market falls 38% in 2013 From Thomson Reuters Point Carbon Global carbon markets traded a total €38.4bn worth of allowances and credits during 2013, a 38% decrease from the €62bn the previous year, in a continuation of the decline that started after the market peaked at €96bn in 2011.

Since then, the key European reference price of emissions has fallen from €18 per tonne to €5 per tonne of carbon dioxide. Last year also saw a decrease in terms of volumes – from 10.7 billion to 9.2 billion emission units – the first drop in traded volumes since 2010, according to analysis published by Thomson Reuters Point Carbon. The decline in prices in carbon markets is thought

to be due to modest emission reduction targets adopted for the period up to 2020.

With a share of 88% of volume and 94% of value, the European Emission Trading System (EU ETS) continues to completely dominate the world of emission trading – despite the European market continuing to decline. In this market the whole of 2013 was marked by the political debate on whether or not to intervene in the market in order to address the large over-supply of allowances.

There is strong growth in the North American emission markets, with North America the only segment to have a seen a growth in volume and

Oil: World economy set for faster growth PIRA Energy Group

38% Global carbon markets traded 38% less in 2013, versus 2012

“The decline in prices is thought to be due to modest emission reduction targets” value in 2013, while Chinese pilot trading schemes show substantial progress and are regarded as another source of growth.

New York-based PIRA Energy Group believes the global economy is set for faster growth now that it has achieved ‘escape velocity’.

Current low oil inventories and stock declines are supporting strong prices, according to the group’s Weekly Oil Market Recap for the week ending 29th December (2013). Key light product inventories are low, with distillate vulnerable to a spike with very cold weather.

Brent-Dubai will be fairly wide in January and February before narrowing sharply in April. In the US there is another large stock decline, while in Japan, crude stocks draw strongly.

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February 2014 • gasworld | 27

© Air Liquide

HOT TOPIC

Is the hydrogen revolution upon us?

With a multitude of car manufacturers announcing plans to launch hydrogen powered vehicles into the consumer markets in 2015, we ask – is the world ready for the hydrogen revolution?

STUART RADNEDGE gasworld, Web Editor

W

hat came first, the chicken or the egg? It is a question that has troubled scientists and ancient philosophers for quite some time, and continues to do so.

The question, when broken down, is a basic one. What came first, X that cannot come without Y, or Y that can also not come without X? And it’s the latter, broken down, description of the question that applies to this article. What came first, the hydrogen powered car or the hydrogen filling station?

We asked, in the October 2012 issue of the magazine, “the hydrogen economy, are we any nearer?” Inside the magazine the special feature addressing the topic of a

28 | gasworld • February 2014

hydrogen economy suggested that despite “progress being made in a number of significant areas on the hydrogen front… anyone still expecting a global hydrogen economy should be prepared for a long, long wait.”

But, by the end of 2013, many car manufacturers had begun pre-marketing the ‘car of the future’ – with nearly all of the announcements stating hydrogen was the fuel of the future, rather than electricity. And these cars will be launched in 2015 – so not a long, long, way away. If the battle between electricity and hydrogen, to become the future fuel of choice, were a poker game – Toyota, Honda, and Hyundai have gone ‘all-in’ and placed big bets on hydrogen winning them the final pot.

A statement from Toyota indicates the predicament

companies have found themselves in over the years of future proofing R&D to ensure the business stays at the cusp of technological advancement.

“Toyota has continued to invest across a range of alternative technologies, so our position isn’t an either/ or,” a company spokesman said, adding, “the company will deploy the appropriate technology for the region.

Toyota is already the largestselling car company in terms of the ‘electrified’ vehicles, with 5.5 million petrol-electric hybrids sold worldwide.

Toyota also markets electric vehicles in appropriate regions – for example the RAV4 EV in California, or the COMS micro commuter vehicle in Japan.”

“However, we do believe that hydrogen is the most appropriate low CO2 technology available. Battery powered transport has many challenges to make it a technology that is applicable to a wide range of customers.

For example, we know from our research that battery technology with a useable range comparable to today’s petrol or diesel engine cars could be many years away.

Therefore we see EVs as suitable for short-range, urban transport. Hydrogen could provide a relatively ‘familiar’ (similar range to petrol/diesel, short refuelling times) low CO2 option for a wide range of customers.”

In terms of performance and vehicle cost, both electric and hydrogen cars will operate using an electric drive train and are anticipated to cost between $50,000 to $100,000. Indeed, as the Toyota spokesman stated, the refueling time required to fill the vehicle is, however,

only minutes in a hydrogen vehicle – compared to the up to 12 hours needed to fully charge an electric car. The ace up the sleeve for electric fuel is the fact that it is currently available freely – all that is required is more charging stations, something hydrogen stations was lacking in. Or so we thought.

Coming to a station near you In an exclusive interview with gasworld Pierre Etienne Franc, Air Liquide’s Vice-President of Advanced Business and Technologies, revealed the plans that the company has to be at the forefront of the hydrogen filling economy.

He confirmed that three car manufacturers (Toyota, Hyundai and Honda) have effectively announced the production in series and the vehicles will be released for purchase in 2015.

“It will be a limited number to start with but more will follow,” he said.

“From what we know Japan has 100 hydrogen stations mapped out, and Air Liquide is a part of this being implemented. Germany has a slightly different set up but 15 stations are already implemented and 35 are intended by 2015, Air Liquide is building 10. And California aims to operate 60 stations over the next three years.”

“The technology is working well but the major issue is cost.

In the long-term we need to reduce this by 50% in order to make hydrogen filling stations competitive.”

Franc revealed there are also aims to improve the filling times – something which already appears to be quicker than the conventional www.gasworld.com/hottopic

HOT TOPIC

fuel filling times of both petrol and diesel.

“A hydrogen car can be filled in five minutes currently.

But we would like in the future to see this reduced to three minutes,” said Franc.

“As I said previously there are no issues with the technological developments, involved with constructing hydrogen filling stations or, that are needed to fill a car.

The issue is the cost of rolling it out and getting hydrogen onto the garage forecourt.”

It does appear when speaking with the VicePresident, the progression of hydrogen as a fuel of choice for cars was always going to happen – due to the only emission from the exhaust being water.

He proclaimed, “Because of the 95g/km of CO2 average in the emissions from vehicles currently – there is really no choice but to look at other advances in technology to allow us to still fuel our vehicles, but with a greener outcome.”

get involved with and install hydrogen filling technology.”

“It is key that Air Liquide supports this new industry in its early stages to have a strong foothold in it when it takes off.”

“As long as there is a profitable case there is The cost of creation no limit to how many The creation of a hydrogen filling station costs around €1m stations (we may see)” and would be able to fill 20 hydrogen powered cars every day – according to Franc.

“It’s high pressure technology that is needed to be installed in the stations and it needs to be safe enough for the public to use,” declared Franc. “As long as there is a profitable case there is no limit to how many (existing stations) we could

The huge potential of making profit by being involved in hydrogen fuelling for vehicles was echoed at a recent event.

Speaking at the Air Liquide investors day, which was held to celebrate the company’s 100 years of being listed in Paris, Benoit Potier stated that, “if

10% of cars around the world were powered by fuel cells, it would amount to €100bn in sales for the industrial gas sector – twice the size of the entire global industry today.”

So back to the original question, of what came first – the hydrogen car or filling station? The answer, in my opinion, is neither. The potential success of hydrogen as a fuel of the future will depend on profitability for the companies, cost effectiveness for the customer purchasing the vehicles, and acceptance.

If all of these factors enjoy an overwhelmingly positive outcome there is no reason the hydrogen economy, and subsequently the industrial gases sector, cannot enjoy an extremely profitable future. gw

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COLUMN

are normally used for maintaining gas pressures in city ring mains during times of peak demand.

LNG trailers LNG trailers are used for distributing LNG to storage vessels, and utilise the kind of cryogenic valves similar to those used on storage vessels.

However, trailers may use ball or gate valves to achieve greater flow rates, enabling equipment to be filled faster.

Metal-seated designs or globe valves are needed as final closing valves to make sure they remain fire safe.

Cryogenic valves for an evolving LNG industry KEITH STEWART

A

HEROSE

s one of the first cryogenic service providers to enter the LNG industry, it’s well over a decade since Herose started supplying valves for LNG applications.

It’s a fast-growing market, one that requires us to respond and adapt accordingly. Consequently, changes to the specifications of valves and their diverse applications reflect this evolving industry. For example, fire-safe emergency shutdown valves are more prominent on all types of equipment.

Similarly, global specifications have become more stringent as the fuelling of ships with LNG takes place closer to densely populated areas.

Applications for LNG valves have increased too, as we are all too well aware at Herose, as LNG is used in new and exciting ways.

LNG storage vessels Bulk vessels are used for storing LNG. They supply liquid fuel for many applications such as transportation, including lorries, buses and ships. LNG from storage vessels is also used as a

30 | gasworld • February 2014

source for energy production after being vaporised for use as a gas. Vessels are often constructed off-site and transported by road or sea up to 100,000m3. Larger vessels are usually built on-site with a similar, but larger in size, set of valve requirements.

The cryogenic valves used on storage vessels include globe, safety and check

“Applications for LNG valves have increased too, as LNG is used in new and exciting ways...” valves in stainless steel and the main shut-off valves are normally fire-safe. In addition, fire-safe emergency shutdown valves (ESD) are used to close LNG supply in the event of an emergency.

They’re produced to the European standard – for example DIN EN 10497 or similar – and are required to hold back flammable mediums for over 30 minutes. Control valves are also used in these circumstances.

Shaving station vessels normally use larger valves. Typically these 4,500m3 vessels use 12-inch (DN300) manual and actuated valves. These larger vessels

LNG filling stations The LNG version of either a petrol station or gas station mainly uses ball valves and the main shut-off valves are fire-safe globe valves. These full-flow valves are used to ensure faster fill times at lower pressures.

LNG plants and terminals When it comes to LNG plants and terminals, a more diverse range of valves is needed than for other applications. All the aforementioned valves maybe used, however, plant valves usually have higher pressure ratings and terminal valves such as butterfly valves are normally larger.

Herose advises on and supplies the valves needed for every stage of the LNG storage and transportation process, as featured above. We look forward to what the next decade has in store for the LNG industry – and we’ll continue to make it our business to stay ahead of the game so that our clients can stay ahead of theirs when it comes to safety, legal requirements and best practice. gw ABOUT THE AUTHOR Keith Stewart, of Herose GmbH, has worked in the industry for 25 years.

With more than 135 years experience in the development, manufacture and sale of valves, Herose is one of the world’s leading manufacturers and suppliers of valves and ancillaries to the cryogenic industry globally. www.gasworld.com/columnists

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February 2014 • gasworld | 31

INTERVIEW

Driven by diversification

An interview with Iwatani Corporation “We would never have become successful if we did not challenge,” explains Hisato Ueha, Senior Vice-President of Iwatani Corporation, in an interview with gasworld magazine.

L

ike many of its fellow Japanese industrial gas majors, Iwatani Corporation heads into 2014 driven by diversification. The company has high ambitions and, perhaps, even higher challenges ahead.

Founded in 1930 when Naoji Iwatani launched an oxygen and welding supplies business, Iwatani Corporation (Iwatani) found considerable success as the largest industrial gas distributor in the Kansai area of Japan in pre-war times.

The launch of its liquid petroleum gas (LPG) business in 1953 is credited as enabling the company to take a ‘great leap’ forward in the years that followed, resulting in both a fuel revolution for

32 | gasworld • February 2014

Japanese consumers and the first steps in diversification for Iwatani.

Further restructuring through the decades would see Iwatani launch two major projects in the 1970s with the construction of a large-scale liquid hydrogen plant and the establishment of Cold Air Products Co. Ltd, a company which effectively uses the heat generated when converting LNG into gas.

Iwatani has been taking a leading position in the Japanese industrial gases market ever since, its core products being air separated gases (oxygen, nitrogen and argon) and hydrogen, helium and carbon dioxide (CO2). The company has more than 50 industrial gas production

and filling facilities throughout Japan for these products, as well as for dry ice, acetylene, ammonia, welding mixture gases, pure gases, specialty gases, electronics gases, medical gases, LNG and LPG. Since being the first to introduce LPG in Japan for household energy in 1958, Iwatani has been Japan’s largest LPG supplier and is active around the world.

Clearly, diversification is in the company’s DNA and, despite its rich history of more than 80 years, Iwatani readily recognises that its future lies in further divergence and overseas expansion. In addition to its portfolio of gas production and filling facilities, the www.gasworld.com/interview

INTERVIEW

company already has 105 consolidated subsidiaries in Japan and overseas, including sales and production facilities.

Yet the company is not averse to the fact that further growth and sustainability will likely be achieved only as a result of branching out in new and existing territories alike.

The reason for this is partly due to the economic position of Japan, a situation that has confronted the country’s industry for the last 30 years.

Due to the steep appreciation of the yen after the Plaza accord in 1985, Japanese companies were driven to accelerate their plant relocation to other countries – and Iwatani was among those industrial gas companies to follow their customers by strengthening its overseas business development.

China and Southeast Asia have long been the regions in focus for Japanese gas companies, with the continuing economic growth prospects of China, India, Indonesia, Thailand, and Vietnam among the hopes for future potential.

This overseas business development is a trend or strategy that continues for major players in the Japanese industrial gases market like Iwatani; gasworld understands that while the company had two gas filling stations in Southeast Asia and two ASUs and one CO2 plant in China in 2008, it now has more than 10 industrial gas production and filling facilities in Asian countries.

Hisato Ueha is the Senior VicePresident of Iwatani Corporation and has almost 40 years of experience in the industrial gases market, managing marketing and sourcing and business strategy for air separation gases, specialty gases, hydrogen, helium and other gases both domestically and overseas. As part of the senior management driving the company through its next wave of diversification and development, the 61 year-old confirmed to gasworld, “Iwatani continues to strengthen the development of its industrial gas business in the Asian market.”

“The domestic industrial market has been recovering from the slow economics due to ‘Abenomics’. Thanks

to the recent sharp depreciation of the Japanese yen, the export industry, especially automobile companies, have bounced back from adversity and lead a positive impact on other manufacturers.” “[But] the Japanese gases

“The main topic we are working on is to promote diversification in energy businesses,” Ueha explains. Hydrogen would appear to be significant here, and an area that the company has considerable expertise in.

September Iwatani’s annual revenue in 1978 saw Iwatani 2012 was around US$7bn, with operating income of $178m, complete Japan’s ordinary income of $185m, and largest liquid net income of $85m. hydrogen production plant in Osaka, with 36 tonnes per month capacity and storage of 200,00 litres.

This was superseded in 2006 when the company started operation of the largest liquid hydrogen plant in Japan, then the only plant enabling full-scale liquid hydrogen supply on a commercial basis.

Today the company operates three liquid hydrogen facilities and has high hopes for this market in the future.

Ueha says, “Iwatani is trying to create and develop a liquid hydrogen market in Japan. Now, [we have] three liquid hydrogen production facilities operating.”

“We have 100% market share in the “The main topic we are liquid hydrogen market and [are] taking working on is to promote more than 50% market share in merchant hydrogen, including compressed and diversification in energy liquid hydrogen. Iwatani would like to businesses...” concentrate on the hydrogen business for the fuel cell vehicle market.”

The helium business is another market has contracted over the last five investment that Iwatani aggressively years. We would like to concentrate pursues, and the long awaited management resources on promising commencing of operations at the Qatar business areas. So we now focus on the II helium plant in Ras Laffan, Qatar last Indonesia and Malaysia markets, besides year was a major event for the company.

China. India, Vietnam and Thailand also Iwatani is the first Asian Company to seem to have high potential in the gas acquire rights to purchase helium directly market, but we regard them as the next from Qatar, and will be provided with stage.” some 260 million scfd (8 million Nm3) of To challenge helium per year.

For Iwatani the strategy is not just In order to transport this product to geared geographically, it is also about end-markets in Japan and other Asian a departure from an offering largely countries, Iwatani needed logistical dominated by air gases through the support close to the helium source in years; helium, hydrogen and CO2 are order to fill, maintain and expedite among key areas in which the company ISO containers from source to endis expanding its portfolio of products and user markets. Under the auspices of investments.

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February 2014 • gasworld | 33

INTERVIEW

joint venture between Buzwair Gases, Iwatani Corporation and LNG Japan Corporation, the company was involved in establishing a new liquid and gaseous helium transfilling station at the Ras Laffan Support Services Area.

The first helium transfill facility in Qatar, it is also one of three newly opened helium filling stations for Iwatani, the others being in Malaysia and China, we understand.

Ueha explains, “Iwatani has acquired rights to purchase helium directly from Qatar and has started to import them to Japan and Asian countries. We have also opened three overseas helium filling stations in China, Malaysia and Qatar to meet the rapidly growing needs.”

“We would like to be a major helium company in the Asian market. We are very proud of having acquired the rights to purchase helium form Qatar II as the first Japanese company to do so. We would never have become successful if we did not challenge.”

Helium shortages in Japan were well documented last year and these ‘rapidly growing needs’ are something that Akiji Makino, Chairman and CEO of Iwatani Corporation, alluded to at the inauguration of the helium transfill facility in Qatar in December.

34 | gasworld • February 2014

“Our priority has been to diversify our sources and respond to increased market demand. Importing helium from Qatar is not only significant for our company but for the development of Japanese industry,” he said.

Ueha adds, “Japanese customers

“We are very proud of having acquired the rights to purchase helium from Qatar II as the first Japanese company to do so...” have been concerned about the helium shortage because of a sharp decline in the US helium export source. Our start of importing helium from Qatar could free our customers from concern.”

“We would like to supply helium not only to our customers in Japan, but also externally to Japanese and excellent companies in China and other regions across globe. We would like to expand the industrial gases business in Asia through the strong presence of helium.”

With the demand for beverages believed to be increasing, the CO2 business is another pillar of the Iwatani

strategy going forward and last year’s expansion of its CO2 plant enabled Shanghai Petrochem-Iwatani Gases Development Co. Ltd to ‘maintain the stable supply of CO2 and strengthen its position in the food market’. With this development, Iwatani feels it currently has enough capability for CO2 supply and we understand there are no further expansions planned as yet.

What is planned is a continued – and expanded – leadership position in key product areas for Iwatani Corporation.

Ueha concludes, “Iwatani would like to be a unique conglomerate company with Gas & Energy as a main concept.

Iwatani will be the number one helium supplier [in Japan] and also expand its liquid hydrogen business to make an epoch in hydrogen FCV stations, starting in 2015.” gw HISTORY Iwatani Corporation was established in 1930 by founder Naoji Iwatani, with the formation of an industrial gas and welding supplies business.

Mr Iwatani passed away in 2005 at the age of 102. www.gasworld.com/interview

© Courtesy of Rolande company

SPECIAL FEATURE

LNG distribution Small-scale supply, big opportunities

L

NG is held aloft as the clean fuel of the future, the stepping stone to diversification, as well as being cited as the stimulus for a North American energy revival. It is, quite simply, one of the hottest topics in the public and scientific domain.

For the industrial gas and equipment industry, it has been something of a meteoric rise to prominence in recent years. Countless companies in the industry have invested millions of dollars in creating and developing their LNG presence, and many have already been reaping the reward. Cryostar is just one of these companies; in early 2014 we understood that the company expects a significant part of its revenue to be generated by LNG. Despite its rapid growth, the LNG business is still in its relative infancy and a number of obstacles lie ahead on the path to full fruition. One such area, and arguably the biggest window of opportunity for the industrial gas community, is the distributive side of the business.

Availability As it has been for decades now with industrial gases, the natural gas market is looking at several new opportunities for 36 | gasworld • February 2014

which using natural gas in its liquefied state (LNG) brings several benefits, especially when it comes to moving natural gas.

Indeed, the industrial gas market has developed itself in the past decades by serving smaller customers and bringing gas to their door, whether by cylinders or – when bigger consumptions are required – in bulk supply of liquefied gases such as nitrogen, argon, oxygen, and other air gases. “These liquid deliveries have significantly improved the cost efficiency of gas deliveries,” says Philippe Heisch, Sales Manager (LNG distribution systems) at Cryostar SAS. “It presents such a big advantage that the industrial gas industry is continuously searching to lower the volumes of liquid deliveries further by using small dewars and other smaller storage devices.”

“There is no doubt that the experience gained from the industrial gas market shows the way forward for the natural gas market as a cost efficient way of delivering gas. Indeed, there is no need to reinvent the wheel,” he adds.

This is affirmed by colleague Alain Gueraud, Business Developer at Cryostar (LNG-fuelled vessels, FSRUs), who adds,

“The first point in the LNG distribution business will be how the receiving terminals will be equipped to be able to deliver small quantities of the liquid to the companies that will be in charge of distributing or bunkering. This is the entry point.”

The natural gas market has always been known as a captive grid business, and all LNG receiving terminals were designed and built in order to regasify LNG to provide gas into pipelines.

However, by developing remote natural gas applications, such as natural gas vehicles, industrial power supplies, high horsepower engines, marine fuels and others, it became extremely important to provide natural gas through nonconventional means in order to bring it closer to the applications, especially when no gas grid existed.

“In addition to the remote grid applications, it is very important to understand that some small-scale LNG applications can’t run with CNG,” Heisch adds. “Indeed, as a good and visible example, we have the LNG trucks and marine LNG business. LNG trucks need to run on LNG because it gives them a better mileage, while reducing the on-board What part of the LNG supply chain offers the biggest potential?

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SPECIAL FEATURE

storage space for the fuel.”

“Moreover it allows to refuel trucks faster than it could be achieved with CNG. It is the same for the marine LNG business, as these ships couldn’t transport huge bullets of CNG. LNG is the only way when it comes to use natural gas as a heavy transport fuel.”

In terms of market trends, Heisch and Gueraud note that there has been a lot of interest during the past three years and some significant projects have been implemented in order to show that LNG was a proven alternative fuel and power for such applications.

“There is a huge potential for bringing natural gas to our customers’ door by using LNG – this is really big potential. This relates to what Alain was saying – in order to provide LNG, you first need to have LNG available. This is the biggest issue we are facing in the market. Today there are two ways to get LNG: there are a few projects where the terminals are equipped to load trailers, to load ships and to load containers; or you have somebody investing in smallscale liquefaction plants.”

“The applications market is huge, and the universe of equipment you could design to serve all of these markets is very big as well.

There is a huge potential for the equipment suppliers.”

Three pillars Cryostar sees three specific pillars of demand for the equipment business, involving the use of existing industrial gas equipment and expertise like cryogenic pumps and tanks, the development of new types of equipment such as LNG dispensers, truck on-board tanks, and the modification of (existing) equipment – like submersible cryogenic pumps, for example.

The company is seeing more and more requests for pumps submerged within LNG storage tanks, to avoid or limit the losses of product through boil-off gas. This, Heisch explains, is not something the industrial gas community is too familiar with and is just one example of the modification of existing equipment and expertise. Further, he believes a lot of development will probably go on in the field of application and this is an area where new types of equipment 38 | gasworld • February 2014

could emerge. “Typically, a new product we have in our range would be an LNG dispenser with integrated weights and measures approved transaction, or an LNG refuelling station; this is a product that didn’t really exist in the industrial gases industry, it would be really new for the LNG industry.”

“A lot of the demand that we are seeing today, most of the market in fact, is for existing industrial gas equipment. But these examples we have identified demonstrate the increasing market potential for new and modified technologies too.”

© Cryostar | Cryostar vaporizer skid for fuel gas supply system.

Gueraud adds, “There are several opportunities in the LNG business: FSRU (floating storage and regasification units), LNG vessels, and bunkering technologies. I say FSRU because there are many examples: regasification to send gas to the network; filling directly from the barge, which is an LNG carrier; and the possibility to load trucks from the barge or for ship-to-ship transfer, into smaller ships for bunkering.”

“That’s why we think the potential for the gas and equipment industry in the LNG business is so big.”

Boil-off gas Cryostar cites the issue of boil-off gas as a big talking point in the distributive LNG business. While storage devices, pumps and vaporizers are at the heart of the specific technologies required for the LNG distribution industry, what’s

also important with regard to expertise is how to move these cryogenics – and avoid product loss in the process.

“We don’t generate too much loss of product in our industry through boil-off gas, for example. On ships in the LNG business, while you have re-liquefaction units that can help you with this, you will never have re-liquefaction on a trailer,” Heisch says. “So how do you limit the amount of gas that is lost during transportation, during the transfer and on-site where you have the application?”

“You need a clever design,” he continues, “without it being too expensive. If it is too expensive then it raises questions whether it is still worth investing in LNG and the supply chain. This is where the expertise from the industrial gases business is very important – bringing the experience and expertise of dealing with these critical cryogenic fluids will help throughout the LNG supply chain, in order to make it much more effective as well.”

“There is a big discussion about lots of products for boil-off gas issues. I know that Alain Gueraud, for example, is specifically selling equipment for boil-off gas issues, on LNG carriers. We are doing it today on a large-scale, the question is, how could we develop this on a smaller scale throughout the distribution chain?”

Opportunities Looking ahead, Heisch and Gueraud draw a number of parallels between the smallscale LNG market and the industrial gas market, including learned experiences and the synergies in distribution, cryogenics, technologies, and equipment.

Further, both describe the commoditisation of equipment as a significant point going forward in the LNG distribution sector. But, contrary to everything you may have just read, it is not necessarily all about equipment – Heisch identifies another market opportunity in terms of boil-off gas for industrial gas suppliers. “What we are seeing today where boil-off gas issues are concerned, is that some of the players are starting to use liquefied nitrogen to re-condense boiloff gas. This might be a side market for industrial gas in the future,” he says. gw www.gasworld.com/specialfeatures

© Chart Ferox | Chart LNG semi-trailer manufactured by GOFA

SPECIAL FEATURE

LNG distribution Enabling mobility

By Alexander Schramm, Managing Director of GOFA.

N

atural gas is nothing new, but in recent years new sources combined with new methods and technologies for extraction and processing have created new opportunities and enhanced the longterm viability of natural gas as a clean burning, economic and safe energy source on a global scale.

Significant quantities of natural gas can be distributed economically in two ways; either via pipelines or in its liquid form as liquefied natural gas (LNG). More recently the term ‘virtual pipeline’ has been introduced to describe the method of transporting LNG from its source to areas not served by an actual pipeline, where it is stored and regasified for use in place of other more expensive and environmentally damaging fossil fuels such as coal.

LNG transportation within the virtual pipeline is typically by road tanker, but can also include rail and ship. Both the

40 | gasworld • February 2014

terminology and physical examples generally exist alongside another new innovation, which is small-scale LNG, a term that can be applied across all aspects of the LNG value chain – liquefaction, distribution, storage and end-use. Both virtual pipeline and small-scale LNG solutions are playing an increasingly prominent role in the natural gas growth story.

To get the best pay-back from investments in distribution and storage solutions for LNG, it is crucial to invest in high-quality and concept-proofed solutions from experienced market players. Furthermore, service quality and reaction time play an important role.

LNG key growth drivers Although natural gas is a well-known and long established part of the energy mix, there’s been a rapid growth in its use in liquid form, for example as LNG, in recent years.

Strong market growth arises from innovative solutions at the outset, followed by increased momentum and ultimately resulting in critical mass being achieved. For many LNG applications this process is already well advanced due to the following: a) Favourable pricing versus oil, which is widely expected to remain so into the medium and long-term b) An increasing infrastructure network of terminals, bunkering stations, smallscale storage solutions and gas stations c) ’Green’ credentials – with regards to the CO2 balance d) ‘Green’ legislation and initiatives; new European emission regulations for the North and Baltic Sea ship traffic from 2015 onwards, and European Union LNG Blue Corridor projects e) An increasing number of OEM and after-market LNG truck fuelling systems f) Recognition of LNG as an alternative to diesel for a wide variety of high horsepower applications.

LNG demand and the applications it’s being considered and used for have increased rapidly around the world, particularly in the past few years.

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© Chart Ferox | Chart Ferox LNG ISO container

that this trend is set to continue into the long-term. Besides electricity generation in power plants, some prominent ways to use LNG are as fuel for ships, railway locomotives and heavy duty trucks as well as both industrial and agricultural applications, with drill rigs and grain dryers being respective examples.

The virtual LNG pipeline The process of liquefying natural gas involves cooling it through various cryogenic processing stages to -162°C. The liquefaction process reduces the volume of gas to 1/600th of its original volume, which has obvious economic benefits for its storage and distribution Consequently, LNG applications are independent from access to a gas pipeline because supply can be effected by a ‘virtual pipeline’ – a continuous transport and storage chain based on mobile and stationary cryogenic tank equipment.

After liquefaction, LNG is transported to a terminal or directly to a local storage plant. Depending on individual circumstances, this transport can alternatively happen via ship, train, 42 | gasworld • February 2014

trailer or with transportable tanks applicable for intermodal traffic, such as containers or swap bodies. The target is to maximise the amount of gas that can be transported safely within the existing regulations. From the terminal to the

“The target is to maximise the amount of gas that can be transported safely within the regulations” final destination more or less the same transport alternatives are available, but the more the network of LNG end-users develops, the more dedicated solutions for end-user distribution are expected to be needed.

Mobile equipment solutions The lifetime of premium quality cryogenic equipment can be very long and it can be in service for decades. After the initial upfront investment, the total costs of ownership of cryogenic mobile equipment are driven by the direct and

opportunity costs of not being in service due to maintenance, refurbishment, repair, technical changes and updates.

Consider this – a single vacuum problem over the equipment’s lifetime can generate higher costs than any onetime purchasing benefit from choosing a ‘low-cost’ solution.

Although an ISO container has a globally unified basic specification, there are still many variables, from the general robustness of the design to pressure level and equipment. Therefore, and especially by taking the equipment lifetime aspect into consideration, even in the ISO container segment, it is crucial to make the right choice from the right supplier.

Besides ISO containers, we regard semi-trailers, trailers, truck-mounted units and swap bodies as mobile equipment for LNG. A dominant success factor For such products it is essential to utilise an individually optimised design and specification in order to secure the highest possible investment safety.

For countries with comparatively www.gasworld.com/specialfeatures

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SPECIAL FEATURE

low maximum gross weights, like the US, Germany or Poland, each kilogram of additional tare weight reduces the payload; thus, a low trailer weight is essential. But with the reduction of weight in the construction, the stability and even the total lifetime of the trailer can be negatively affected. It is important that customers rely on concept-proofed solutions (as provided by GOFA).

By contrast, because of the low density and weight of LNG in countries with higher gross weights normally not the achievable weight, but the achievable

“Critical for unloading is to have a sufficient plumbing capacity and strong vaporizer” volume within the tank size regulations defines the maximum amount of transportable gas in combination with the allowed filling rate for the working pressure of the tank.

Critical for unloading is to have a sufficient plumbing capacity and a strong vaporizer (Pressure Build-up Unit). Of course, all LNG mobile equipment can be equipped with a pump and a flowmeter and other options. For local distribution the so-called ORCA® system from Chart Industries is a special solution that consists of a submerged pump that is always cold in order to avoid cooldown waiting time. In combination with small cryogenic stationary MicroBulk vessels, the ORCA® system represents an entire LNG distribution concept that is optimised in process costs and time.

Impact on specification Because of the heterogeneous standards for LNG loading and transport in combination with the ‘babylonian diversity’ of road regulations that can be found in Europe, there is not one, but multiple, optimal tank sizes.

That means that a tank manufacturer must be flexible and capable of adjusting its programme accordingly. Besides 44 | gasworld • February 2014

the general tank design, especially for trailers, there are various options to consider: • The country and/or customer individualised tank pressure level • Cabinet (centre, side or rear cabinet, partly also influenced from terminal regulations) • Plumbing (charging/discharging and gas exchange from the centre left or right, or from the rear or combinations out of that, partly also influenced from terminal regulations) • Running gear (different wheel bases according to national regulations, lift and/or steering axle, heavy duty depending on the road quality) Safety philosophy and requirements Of course, increased safety typically accompanies an increase in the investment amount, but safety is a sensitive issue in LNG applications.

First of all, each manufacturer has a different safety philosophy and, accordingly, a different set of safety standard solutions and additional options. Besides other aspects, the safety of a mobile LNG tank is defined by: • The construction principle (for Europe there doesn’t seem to be a future for foam-insulated mobile tanks, so it will be a super-vacuum insulated design) • The position, design and welding quality, technical execution, applied brands and the accessibility of plumbing, valves and safety valves, pump, flowmeter, electrical boxes, venting stack and vaporizer • The general tank design, the substructure including brakes and running gear and the Centre of Gravity (CoG) of the entire trailer • The number and position of dead man switches, automatic shut-off solutions, and anti-tow away devices • Explosion-proof equipment • How venting of LNG can be avoided Secondly, each mobile tank needs to fulfill all safety requirements for

all the terminals that it will be used in. Therefore, the fact that each new terminal may have additional or different safety standards that may have an impact on the existing fleet has to be taken into consideration – the mobile equipment must be easy-to-adopt for additional safety devices in order to avoid restrictions on future usability.

Furthermore, the manufacturer should be aware, flexible and capable of making quick-decisions sufficient to implement such additional changes during the tank’s lifetime. Nevertheless, there are differences from terminal to terminal that are comparatively large, such as the initial filling pressure or regulations with regards to minimum tank working pressure. In combination with different European maximum gross weights, from 40 tons up to 60 tons, a ‘one size fits all’ mobile tank solution for LNG transport seems unrealistic from a competitive standpoint.

Thirdly, each customer’s safety philosophy may differ depending on individual aspects, and accordingly the product’s specification will differ from customer to customer. For example, besides ADR ex zone definitions there may be customer-specific ex zone definitions.

Fourthly, and last but not least, future legislation is expected to impact future designs and safety equipment. gw ABOUT THE AUTHOR Alexander Schramm is Managing Director of GOFA and Chart’s specialist in LNG mobility solutions.

Chart D&S Europe, comprising Chart Ferox, GOFA and Flow Instruments, manufactures a wide portfolio of state-of-the-art distribution and storage gas cryogenic solutions produced in multiple facilities. GOFA Gocher Fahrzeugbau GmbH specialises in trailers, truck mounted units and intermodal containers. alexander.schramm@chartindustries.com

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February 2014 • gasworld | 45

SPECIAL FEATURE

Sea change Environmental regulations mean that shipping operators will have to radically rethink how they power their vessels. Helen Carmichael looks at the rise of LNG bunkering.

O

perating a seagoing vessel is expensive and, according to international accountant Moore Stephens, which recently carried out a survey of vessel operating costs, rising fuel costs and ever-tighter regulations to limit sulfur emissions mean that this trend is set to continue.

US and European Emission Control Areas (ECAs) limiting sulpur to 0.1% come into force in 2015 (see Regulating

46 | gasworld • February 2014

the seas). Distillate fuels such as marine gas oil (MGO) have lower emissions than conventional high sulfur fuel oil (HSFO). But those vessels that continue to operate on distillate fuels in ECAs will see their costs jump, since distillate fuels cost around 45% more than HSFO. Increasing demand for MGO in the face of legislation will only serve to further push up prices post 2015.

“The regulators want a clean and safe

shipping industry, and it is the industry itself, which includes a significant number of older vessels, that will have to underwrite the budget needed to achieve compliance,” says Moore Stephens’ Shipping Partner, Richard Greiner.

Owners and operators are actively looking for solutions to meet these financial and compliance challenges, weighing up the benefits of the only two viable alternatives to MGO: Exhaust gas www.gasworld.com/specialfeatures

SPECIAL FEATURE

REGULATING THE SEAS

Photo: [©] [Claire Droppert] / Rotterdam Image Bank.

January 2015 will see the entry into force of the International Maritime Organisation (IMO)’s stricter sulfur oxide (SOx) emissions requirements in emission control areas (ECAs) outlined under the International Convention for the Prevention of Pollution from Ships (MARPOL) Annex VI. In addition, the regulations also aim to reduce nitrous oxides (NOx), particulates and greenhouse gases (especially CO2). Under the convention, the global sulfur cap was cut to 3.50% in 2012, then progressively to 0.50 %, effective from 1st January 2020. In emission control areas (ECAs) SOx

cleaning systems or LNG power. Ports are already committing to a future that includes LNG bunkering for shipping; for instance, October 2013 saw the major port of Rotterdam awarded €74m in European Union subsidies “to fully develop the market for LNG as a fuel and to open an LNG hub in Rotterdam before the end of 2015.”

And in Fujairah in the UAE, the first land-based LNG regasification

facility received government approval in November 2013. The terminal will have a projected throughput capacity of 1.2 billion cubic feet (34 million m3) of natural gas per day, and will be constructed and operated for 2015

by EmiratesLNG, a joint venture of International Petroleum Investment Co. (IPIC) and Mubadala Petroleum.

All aboard LNG has been used as a fuel since the 1930s, and in Norway, LNG is already used extensively for shipping, due to local emissions legislation.

LNG tankers crossing the sea over recent decades have made use of the boil-off gas (BOG) from their LNG tanks to power the ship’s turbines. Hésingue, France-based engineering company Cryostar has provided equipment for this application since the 1970s and is now leveraging this expertise, along with experience with submerged motor pumps, to create a new range of pumps targeting LNG bunkering applications.

According to Cryostar, pumps for bunkering operations require a low and limited head, and don’t benefit from a multi-stage pump. “For bunkering operations, for which the duration is of paramount importance, pump efficiency is of marginal importance in regard to the transfer rate,” the company states.

The temperature of the LNG when it is

and particulate matter were reduced to 1.00%, beginning on 1st July 2010 (from the original 1.50%); being further reduced to 0.10%, effective from 1st January 2015. This 2015 limit will directly affect around 40% of the world fleet.

As a fuel, LNG reduces SOx emissions by 99% compared with HSFO, and emits 85% less NOx, 99% fewer particulates, and offers a 20% reduction in greenhouse gases. Figures from Ocean Shipping Consultants suggest that growth in LNG-powered vessels is set to skyrocket by more than 3700% through 2025 with around 3,200 ships likely to be commissioned over the next 12 years.

transferred is important, too. “During the initial phase of development of the LNG powered fleet, bunkering station operations will be limited and the equipment may not always be maintained in cold standby conditions.”

Therefore it is important for the pump to be compact, since it has an impact on the cool-down time and the amount of gas required for cooling. Cryostar

“The regulators want a clean and safe shipping industry...the industry itself will underwrite the budget needed” engineers are able to model the fluid dynamics of LNG within the pumps using computational fluid dynamics (CFD) for the best performance.

Although we might envisage a future where LNG rules the waves, an interim phase of several years where vessels need to use both LNG and MGO is more realistic. Helsinki, Finlandbased Wärtsilä is a marine engineering company that aims to bridge the gap. It began development work with dual-fuel gas engines in 1987, the first concept being the gas-diesel (GD) engine with high-pressure gas injection. It followed up with a second generation of gas February 2014 • gasworld | 47

SPECIAL FEATURE

engines in the early 1990s, when the company introduced spark-ignited (SG) pure gas engines that used lowpressure gas.

However, the company says that its “real breakthrough” was in 1995 when it introduced a dual-fuel engine which combined fuel flexibility and efficiency with environmental performance.

Despite all the promise of LNG as a marine fuel, to date its use has been largely focused on medium speed engines, according to Wärtsilä. The company is now set to launch low

Forecast Total LNG-Fuelled Fleet Development to 2025 Source: Ocean Shipping Consultants

LNG-Fuelled Vessels

(No. of vessels)

Other Vessels

75,000 70,000 65,000 60,000 55,000 50,000

2013

2015

2020

2025

Forecast Bunker Market Developments to 2025 Source: Ocean Shipping Consultants © Wärtsilä

“The LNG bunkering scenario has been described as ‘chicken and egg’ by many commentators” pressure, two-stroke dual fuel engines, the first of which will be delivered in Q3 2014. This type of technology is a game changer in that it makes LNG accessible to the vast majority of the shipping market. Jaakko Eskola, Senior Executive Vice-President and President, Wärtsilä Ship Power, stated, “Dual-fuel engine technology is the future; it is a tide that cannot be turned back. Gas is certain to play an increasingly important role in merchant shipping – for both economic and environmental reasons.”

Customers seem to agree: Pontus Berg, General Manager of Greenship Gas, said, “This offers an attractive option for all ships, not just LNG carriers. The market has been waiting for a simpler solution than that provided by high pressure dual fuel technology because high pressure systems demand specialised crew training, whereas Wärtsilä’s low pressure 48 | gasworld • February 2014

(Million tonnes)

LNG Bunker Market

Conventional Bunker Market

320 300 280 260 240 220 200

2013

2015

engines seem easier to operate.”

Governments around the world are keen to get their ships running on gas: looking east to the largest ship building nation, China’s Ministry of Transport (MOT) is reported to be aiming for 2% of the domestic Chinese inland fleet to be operating on LNG dual fuel vessels by 2015, rising to 10% by 2020. The MOT has targeted the construction of between 200 and 500 vessels solely fuelled by LNG by 2030.

Until recently, the LNG bunkering scenario has been described as ‘chicken and egg’ by many commentators –

2020

2025

without bunkering options dedicated to LNG, vessels cannot be expected to convert, and without a large enough LNG-powered fleet, investment in the infrastructure was risky. But emissions legislation and looming fuel prices seem to have provided the necessary push for both sides to commit. LNG’s role as a shipping fuel seems assured. gw FURTHER READING ‘LNG as a Bunker Fuel: Future Demand Prospects & Port Design Options’ from www.osclimited.com www.gasworld.com/specialfeatures

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REGIONAL MARKETS

Regional markets Focus on: Japan

N

ovember (2013) saw Iwatani Corporation unveil its latest three-year mid-term business plan, to run through until fiscal year 2015. Titled ‘Plan 15’ the strategy perhaps best summarises the position the Japan industrial gases business finds itself in as 2014 gets underway.

Three of the plan’s four central tenets are particularly relevant, targeting: • A steady expansion of earnings structure • Growth in the Southeast Asian market • Expansion of technological capabilities These would all appear to be themes underpinning the gases industry in the region in 2013/14. Coupled with these is an economic position that, while much improved in the face of a new administration’s actions for revival, still appears to provide slight uncertainty. The industrial gas companies in the country would definitely appear to be attempting to buffer themselves against any possible downturns.

The Japanese economy reported an upturn in latter 2012, an upturn which

50 | gasworld • February 2014

was largely sustained through first-half 2013. It had been reported that economic growth slowed in the period from July to September but as the New Year began, headlines suggest that the country’s economy does continue to recover – based upon rising consumer prices.

Government data released in December showed that consumer prices excluding food rose 1.2% in November (2013) compared to the same month in 2012; it was also the largest gain since November 2008.

Such improvement is not just important from a global perspective – Japan is the world’s third largest economy – but also for those operating in the country itself. After years of stagnation, it is widely reported that Prime Minister Shinzo Abe has made reviving the economy his top priority. From an industrial gas point of view, this could herald a long awaited upturn in demand for a number of products.

Further, the trend is now toward a depreciation of the yen, rather than the high appreciation that has been seen in recent months and years – another factor of significance to Japanese companies

and the future competitiveness of their export businesses.

Trends Despite strong measures to revive the Japanese economy, up until recently it was thought that this stimulus was yet to penetrate into the manufacturing sector.

As of October, the automotive, metal processing and construction sectors had all been largely sluggish in 2013. This contrasts with improvements in other end-user areas such as iron and steel and chemicals, all of which were seen to improve against 2012.

As a result, changing trends were observed in the gases market last year, with sharp contrasts emerging between the sales of gaseous and liquid product.

A convalescing iron and steel sector for example, the largest consumer of industrial gas in Japan, meant that onsite gas operations at these businesses maintained a high operational ratio.

Further, while there had been differences among the various plants in the chemicals sector, the supply of nitrogen gas to this industry showed steady improvement in comparison to first quarter 2012. www.gasworld.com/regionalmarkets

REGIONAL MARKETS

These ‘core materials’ were steadily heading toward recovery in 2013 and, according to The Gas Review, it showed in the volume of gaseous product supplied. In contrast, however, with the seeming lack of recovery in the manufacturing sector and a lack of increase in the operational ratios of plants in this area, the consumption of liquid oxygen, liquid nitrogen and liquid argon remained low.

Compounding concerns over the operational ratios of ASUs in the country are fears for an argon market in surplus, with little sign of a recovery in demand for the added-value product. In the air separation market, this has been a particular source of concern. As the gas of the highest value in the air separation process, the production and marketing of argon contributes to the profitability of the gas separation business; with an argon market in surplus and a feeling that operational ratios of the region’s plants must be lowered accordingly, the profitability of the liquid gas business is ‘only worsening’ as operating (electricity) costs rise.

Toward the tail-end of the year, there still seemed little sign of a recovery in argon demand as the market for silicon wafers slumped and the volume of chips produced failed to meet previous forecasts (see page 16).

Other trends in the Japanese gases market include: • Differing helium strategies in the gas analysis market as laboratories and gas chromatograph users sought to deal with the effects of ongoing global helium shortages on the supply chain • Hydrogen, as a vehicle fuel, appearing to gain considerable momentum with a number of developments in the market in 2013 • A continuing strategy for diversification among some of the region’s biggest players.

The latter is a significant talking point in the country, it seems, with two of the biggest players in the industry making

notable moves to this effect last year.

Air Water announced the expansion of its energy business as it sought to both safeguard against any future ‘risk of a downturn’ and take advantage of a changing energy sector. Electric power generation and LNG distribution are cited as areas to be tackled with as part of the diversification through to 2020.

These plans build on a business already in steady growth mode: sales of the company have risen year-on-year since 2010, from ¥47.6bn (2010) to ¥54bn in 2012 and ¥55bn last year (2013).

Taiyo Nippon Sanso Corporation

“TNSC made the first move within the group toward its downstream reorganisation...”

(TNSC) also pressed on with its own diversification plans, both geographically and downstream. The company is investing in Taiwanese PSA manufacturer Benson Industrial Gases (BIG) Technology, headquartered in Taipei. TNSC has been developing its PSA gas generator business primarily in Japan during the past 30 years, but the expansion of its business overseas, largely in Asia, has become an urgent issue for the further development of its PSA business.

Further, TNSC made the first move within the group toward its downstream reorganisation, with the establishment of Taiyo Nippon Sanso Gas & Welding. The new entity, which began operations on 1st April (2013), is to be the core company for the distribution of gas and welding materials within the group.

Optimism Overall a correction of the value of the yen since 2013 and rising stock prices, coupled with a new administration’s plans to revive the economy, are cause for optimism in the Japan market.

According to The Gas Review, the business results for seven of the region’s players for the second quarter of the

2014 fiscal year are out, with three of these companies (TNSC, Sumitomo Seika Chemicals, Toho Acetylene) demonstrating positive performances in the accumulated total of free cash flow.

Declaring its first-half fiscal year 2014 results, TNSC noted first-half net sales on a consolidated basis increased 9.4% year-on-year (YOY). Despite a slight slowdown of sales to the chemical industry, sales in Japan to the steel industry remained firm and in addition, domestic sales of oxygen and nitrogen (supplied onsite) were all up YOY. TNSC saw shipping volume and sales of liquid oxygen, liquid nitrogen and liquid argon decrease YOY because of an overall decline in demand from industries that use these items, while also acknowledging that sales of machinery and equipment dropped sharply YOY following a decline in orders. Despite this, the message from TNSC – the market leader in Japan – appears to be one of positivity; sales in the industrial gas segment increased 10.6% YOY. Though operating income fell 5.2%, this was attributed to a rise in costs following a fall in industrial gas production volume in Japan and lower profit margins for machinery and equipment.

In closing, perhaps a final reason for optimism is September’s (2013) award of the 2020 Olympic Games to Tokyo.

With the selection of Tokyo as host, industrial gas demand appears set to spike across the board as the city prepares to host the event and builds the necessary infrastructure. Reconstruction of the existing athletic facilities is expected to be undertaken, as well as work to all elements of the Tokyo metropolitan area’s infrastructure, including the highway system, the sewerage system, electric cabling and gas piping – all of which is anticipated to create a renewed demand for gas and welding materials. gw RELATED ARTICLES Driven by diversification An interview with Iwatani Corporation Page 32

February 2014 • gasworld | 51

© Den Hartogh

SPECIAL FEATURE

In focus...

Cryogenic tanks and tankers

L

ast month’s feature on cryogenic valves described them as ‘essential to our industry’ due to their daily dealings with cryogenic matter.

But if there were no tanks to store the substance in, or tankers to deliver the payload from production to customer, we would have no need for a valve. This may be a somewhat overly simplistic analysis or comparison of the two, equally important, sections of the cryogenic family of technology – but simplified is a word that cannot be used when trying to find an adjective to fit the task of describing how the tanks and tankers have been developed during the last 30 years to satisfy the ever-expanding reach of the global industrial gases market.

The only thing more important than the storage and transport element of the

52 | gasworld • February 2014

tanks and tankers industry is the element of safety. Roll-over incidents, which is where the liquid product inside the tanker moves from side to side and in a second wave, pushes the trailer onto its side, are still too frequent an issue. Driver training, and a variety of technology being installed around the driver’s cab to assist in mitigating the risk – like assistive breaking – has increased in provision from companies to increase the safety on every delivery. But the tonnage has also increased – to make each trip has a higher payload – which is understandable when it is estimated that distribution costs are thought to make up some 50% of all air gas industry costs.

Here, we ask companies in the tanks and tankers industry to provide us with insight into what is driving this business.

Trends Alike last month’s feature about cryogenic valves, the tanks and tankers sector has also enjoyed the boom experienced by the revolutionary surge in the market due to the emergence and adoption on LNG. Taylor-Wharton makes on-board vehicle tanks that are 500 to 3,000 litres, fuel stations and industrial tanks typically 20,000 to 400,000 litres and liquefier storage tanks and marine tanks up to 1,500,000 litres.

Company CEO Eric Rottier stated, “Stationary storage tanks are getting larger as new liquefiers and marine applications are being pursued. Tanker demand has slowed awaiting new liquid supply – with fuel station build out (being) steady.” “(Elsewhere) Both economic and www.gasworld.com/specialfeatures

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SPECIAL FEATURE

© Isisan | The majority of tanks are designed and built like ‘cigars’.

environmental drivers are motivating the marine market to convert to LNG. Liquefiers are being pursued given the low cost of LNG versus diesel. Over the road trucking is becoming increasingly interested in LNG.” The demand for LNG related products was echoed by VRV – which over the last 10 years has seen demand for tankers double from about 9,000 litres to 15,000 20,000 litres.

Global Sales and Marketing Director, Michael Blondin, said, “One of the key trends is the increasing demand for LNG equipment and the desire for our customers to be able to obtain any type of cryogenic storage and distribution equipment from a single supplier. In this day and age with tight pocketbooks.”

“In today’s ultra-competitive market, with tight margins, customers are looking to streamline their procurement activities and leverage their purchasing power.”

“Another key trend is the need to optimise operational efficiencies and increase productivity in distribution.

Because distribution costs weigh heavily in the total product cost, customers are looking increasingly at distribution solutions that reduce costs over the life of the asset and help achieve lower costs and gain a competitive edge. For 54 | gasworld • February 2014

this we have seen that the industry is looking to companies that have significant engineering capability to design operationally efficient, optimised distribution solutions that will consume the least amount of energy over the life of the asset, generating the most savings.”

Serdal Kara, Sales and Marketing

“In today’s market ... customers are looking to leverage their purchasing power” Manager for Turkey’s ISISAN, said, “Cryogenic tank demands of the countries differ by industrial capacity and also policy of their own. Countries located in Western Europe and implementing high industrialisation studies, have very high cryogenic tank demands for their projects about storage, back-up, and tube filling systems. Tank volumes may differ from 2m³ to 300m³ and specified by the users according to their requirement and the location of the field.”

An insight into the market in the MENA area was provided by Kryooprema, which is based in Serbia and also has customers in Europe as well.

Managing Director, Ljubiša Rašković, said, “The trends in the tank market we experience in Europe and partly in MENA, our main markets, depend of the region but there are some similarities.

Regarding the vertical bulk tanks the competition is tough due to a quite large number of manufacturers and relatively low demand.”

“Therefore profit margins are rather low. The only exception of this situation are the Gulf countries while North Africa suffers from well known political disturbances and tank sales are not worth to mention.”

And finally the Netherland’s headquartered company, Den Hartogh, believes distribution of LNG in Europe will be by road. Hans Kok, said, “We believe that for LNG distribution in Europe either road trailers or 40ft ISO tanks will be strong to mid-scale industrial customers not connected to the grid and to LNG fuel service stations.

However, the market for distribution by road and rail develops slowly in Europe and we don’t see a strong demand yet.”

Growth drivers The emergence and adoption of LNG as a fuel will provide those in the tanks and tankers industry with an undoubted www.gasworld.com/specialfeatures

SPECIAL FEATURE

© VRV | The emergence and adoption of LNG as a fuel will provide those in the tanks and tankers industry with an undoubted boom in business as the product is transported by either road, rail or even sea.

boom in business as the product is transported by road, rail or even sea.

“LNG fuelled ships are leading the environmental challenge defined by the IMO (International Maritime Organisation) and the reduction of CO2 , NOx and SOx emissions are major goals to reduce harming life on Earth,” stated Arnaud Crohin.

He added, “LNG fuel is also more efficient and cheaper than conventional HFO (Heavy Fuel Oil) or MGO (Marine Gas Oil) – so the complete LNG value chain business will be boosted by the adoption on LNG as a marine fuel.”

For Krooprema’s Rašković, the rise in sales is for “transportable pallet tanks (24-37 bar up to a 1,000 litre of volume) and microbulk tanks of the same pressure and volumes up to 2,000 litre. These transportable and static/stationary tanks have advantages like flexibility.”

“This trend is specially noticed in Europe and requires from industrial gas companies some changes in liquid gas supply logistics for micro bulk tanks while the pallet tanks need no such an effort since they have practically the same 56 | gasworld • February 2014

logistics method as the bundles.”

Aside from the crest of the wave that LNG is allowing many to surf along, ISISAN also attributed the food and beverages sector as in demand. “The demand for medical oxygen and tube filling processes are showing increase in the last few years. Besides this, vacuum

“China and India are rapidly becoming global cryogenic equipment hubs” isolated CO2 tanks are highly demanded in the food and beverage industry,” said Serdal Kara.

A rise in demand for tanks and tankers from Taylor-Wharton has been experienced in “coastal areas and inland waterways have more activity driven by marine and export opportunities,” according to Rottier.

Summarising the globalisation of the tanks and tankers industry, and the paradigm shift of power from the west to the east, is VRV’s Blondin.

He said, “Thanks to improvements in

infrastructure, the size and make-up of distribution fleets have changed in an effort to optimise costs related to operation and distribution. Now the major industrial gas companies are putting into place their proven distribution methods based on the most optimised solutions employing the most modern designs and techniques to increase payload.”

“This trend has shifted the supply flow, historically from Europe and the US to China and India who are rapidly becoming global cryogenic equipment ‘hubs’, where world class cryogenic equipment manufacturers have all set up, be it cryogenic tanks, trailers, valves, vaporisers, pumps or ASU’s.”

“Over this period demand for cryogenic equipment in the emerging markets increased significantly and local manufacturers began to export, mostly to other emerging markets.

Industrial gas companies in emerging markets now have a choice to use local foreign-owned and regional manufacturers, meaning lower transport costs and import duties.” gw www.gasworld.com/specialfeatures

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SPECIAL FEATURE

Cryogenic tanks

Evolving the cold converter

By Hannes Rucker

I

n the air gas industry the distribution of liquefied air took off in a major way during the 1980s and 1990s.

From the ASU via trailers or railcars, to filling stations or end-users where cold converters were awaiting, the basic solutions were found and implemented.

From 2000-2010 the market went through a phase of mergers and acquisitions (M&A) activity whereby competition grew and yet became increasingly refined, with more optimised cryogenic tank solutions developed as a result of changing demands.

For the industry this has been an evolutionary process. The basic tank function has been the same, but there have been ways of maximising the payload on trailers and increasing rail/road/ sea flexibility with containers. Within cold converters the evolution has meant standardisation on 18 and 36 bar MAWP, plus a flow schematic that fulfills most needs. The trend has been to regard cold converters as commodity, to simply buy at the regional/global price curve in price per litre.

So, is it possible to design a new cold converter range that is truly more useful?

There are some 10-20 cold converter 58 | gasworld • February 2014

cryogenic tank designs on the global market, of which around 4-6 are regarded as ‘leading’. Many within the industry believe this is sufficient, and there is no need to spend time and money on a further range. This is of course a challenge. Could it be possible to create a tank design that offers more – at the same or even lower cost? Cryogenic tanks have a long lifespan and will be used over many years, so streamlining tank operations is still a useful objective.

Considerations On many cryogenic tanks today, the flora of instruments, telemetry, flow schematics and instructions are spread all over. All of these bits and pieces are often needed – but could they be arranged in a way that is logical and easy to follow? Often each customer wishes to have his selected parts, combining this to suit his own group operations. Which begs the question, could it be possible to collect all of these items under one roof, customised to suit the requirements of different groups and yet added to the tank in minutes?

Another consideration is valve location.

We all know the importance of safety and although all tanks today are safe, there

might be ways in how best practice could be improved to offer an even better dayto-day situation. Instead of having safety valves hidden behind tanks, located low and often hidden in snow or ice, make them accessible while still venting away from the operator and tank.

Filling a cryogenic tank without losing gas is also a key issue; the further away from an ASU your cold converter is located, the more expensive every vented litre of product is. An easy balance between top fill and reduced pressure, and bottom fill, is now a must, making it possible to carry this balance out and to fill fast via pipes with large diameters.

In the future it is foreseeable that tanks will be going in and out of customer locations more often than before, due to supply contracts being won and lost.

This means that tanks ought to be easier to move, erect and lock down, reducing transport costs and lifting costs, as well as installation costs. Efforts should therefore be made to streamline all these functions.

Evolving the cold converter Man has always strived for a better life, and a cryogenic operator driving a high performance truck/trailer wishes to see an optimal cold converter to fill into. If this could be designed and manufactured to a similar cost as a less attractive tank, then the choice is easier to make.

This is why we have spent a lot of effort in making the new Xe cold converter design, as recently launched by INOXCVA, into an evolutionary design.

This is simply catering for what a modern thinking operator would like to work with – based on basics, but made better.

As has been done with the development of containers and trailers in the past, we started off by creating a model (scale 1:1) of the lower part of a 20,000 litre tank, complete with legs and piping, and the optional new cylinder filling out/inlets.

Functions all based on experience from leading designs were shaped earlier, but here it was important to pose a number of new questions. How does the operator of a cryogenic trailer act when he arrives at a cold converter? What is his first consideration, his first action? How is www.gasworld.com/specialfeatures

SPECIAL FEATURE

the filling done, how is he controlling the safety side? These are all considerations in making the operator’s daily life easier, safer and more convenient.

After the arrival of original tank parts, we spent four months in creating the new Xe model on a 1:1 scale. After some revisions to layout we found an offering of true advantages. We then invited 12 key European cold converter specialists to see the Xe model and to add views and wishes, all of whom found the design direction sound and pointed to some further steps ahead. Minor modifications were carried out, including the fine tuning of locations and angles. But the basic premise was formed and one key user concluded, “There is nothing dramatically new with this design – but it is intuitive.”

Customised Control Panel Module Studying a number of tanks in use, one cannot avoid being surprised by the wide flora of arrangements with instruments, telemetry, flow schematics, and added information. The reasons behind this are easy to understand, but can this continue in our streamlined world?

The ambition on our part in developing the Xe design is therefore clear: Let us aim for a modular system that’s also attractive and caters for each gas company’s chosen needs/arrangement.

The working name for this customised Control Panel Module (CPM) was Targa.

The aim with the Xe CPM is to combine the desired info, from Quick Response (QR) codes and flow schematics to manometers and telemetry, all under one roof – as well as making it easy to prefabricate and attach to tanks. Ideally this would be off the shelf and available to be delivered in one hour.

Most core users so far confirm that this CPM direction is right. Could it become a reality? Could one man himself bolt-on this CPM? We succeeded with it on the model work and we made a brief video showing that it is possible – within minutes. The ambition is to have one ‘signed and sealed’ CPM of the user’s specification on the shelf in Europe and then build the following units as 100% the same versions, always being one step

ahead of demand. The key is to get this CPM exactly as the user wishes to see it and also to have the possibility to take it off to service or update components.

Liquid to the left, gas to the right Once an operator has checked tank status, his mission is to fill the tank safely, quickly and without losing any gas. On the Xe model, all liquid functions are located on the left-hand side of the tank and at working height.

The pipe dimensions are made so that fast filling both into the tank’s top, as well as bottom, is possible. Valves are all stainless and welded into pipes, ensuring

“There is nothing dramatically new with this design – but it is intuitive...” no leakage, and are also accessible to service from the valve’s upper side if required. The intention is to have top fill higher than bottom fill, showing the operator the inlet pipes position on the inner vessel. The necessary top close and bottom close valves, which are remaining open for normal use, are both located further down the lines. These are still easily accessible if needed and well above ground level, away from potential European ice and snow.

On the right-hand side, all gas related functions are located – with pipes coming out on a stainless plate in a logical, intuitive order. All functions and valves can be easily reached and all vent underneath the tank and away from operator. The intention is clear; for operator to see and check all of these aspects from one operating point only.

The safety line pipe has a large diameter and connected downwards to this is the vent function. If the operator opens this valve and hears/sees venting take place, he is then reassured that the pressure has access to the diverter and the safety valves located upstream. There is no risk for ice blocking these entrances and the vent line blows in a direction underneath the tank and away from the operator. This is

also true of the two safety valves and the optional two bursting discs.

The important trycock valve, to be used when filling is reaching its maximum level, is also located at the same height and level. In the middle of the tank, connected to the PBUC gas side, is the Pressure Economiser Regulator, a useful regulator that is now available from four sources and whose origin is from innovative thinkers in the 1980s. It streamlines the functions of modern cold converters and is now a must. However, the optimal function of this idea is a combination of all its parts, as well as of the actual piping both outside, inside and in interspace of the tanks. The Xe design caters for all these ‘hidden’ aspects.

Response When launching the first Xe tanks onto the European market toward the end of 2013, INOXCVA and fellow project partners such as this author received a number of useful views – as well as an extremely positive reception.

Some very practical ideas arose, some of which will be implemented on future tanks. Perhaps the most encouraging view was that users see the Xe to be intuitive; so easy to understand that you most often do not need a manual. In fact, we even heard the suggestion to name it the ‘iTank’.

Most viewers found it to be an innovative design, based on a number of sound ideas and principles. The arrangement and layout of the Xe is considered distinctive, while we had launched the idea of adding a QR code to the CPM which will enable the operator to get easy access to all required information on the tank, which prospective users appear to find intuitive and value-added.

The first and most crucial step on a path of development has been taken.

As we all know, many steps are needed to be taken to make such progress in all regions, while Continuous Improvement is naturally necessary – all of which will provide a complete strategy for future development. Creating a cold converter fleet that will be easier to swap between markets and regions is perhaps now one step closer. gw February 2014 • gasworld | 59

© Dave Thorpe – Alphasound

SPECIAL FEATURE

BCGA Annual Conference 2014

Showcasing industry progress

E

ach year the BCGA annual conference brings together industry professionals, to be fully updated on the developments and current issues affecting the industry. This year, the event also aims to showcase the progress made on these issues.

To be held on 10th April, at the Marriott Hotel and Country Club at Worsley Park in Manchester, the conference will feature a wide-ranging programme of speakers and papers covering progress in the areas of environment, alternative fuels, food and beverages, misuse of drugs and more.

Attending the conference also represents an opportunity for BCGA members, or non-members, to network with existing contacts and make new ones; member numbers have maintained momentum in recent years, presently standing at 75, gasworld understands.

This significance of this opportunity is reinforced by the conference’s all-time highs in attendance in recent years. The event attracted more than 140 delegates in both 2011 and 2012, and kept up this high standard with 135 delegates in 2013.

Last year’s event also set the bar even higher with a resoundingly popular agenda of speakers and subjects, with an 60 | gasworld • February 2014

informed and high-profile presentation from the Right Honourable Michael Portillo closing the conference and proving particularly popular.

Diverse This year, the conference programme will get underway with a Technical Committee Report from Jake Lake, BCGA Technical Manager, as well as Alan Ross, Stephen Bradley and David Hurren representing some of the association’s Sub Technical Comittees.

Publications, papers and progress made within the association over the last 12 months will all be reflected upon.

The agenda will then turn to the external keynote presentations, beginning with a presentation of Gaseous Fuels for the Automotive Sector by Ian Bacon, Technical Manager for Powertrain and Fuels at the Society of Motor Manufacturers and Traders (SMMT).

Michelle Jackson, European Business Development at Air Products, will discuss Gases in the Food Industry.

As European Modified Atmosphere Packaging (MAP) specialist, Jackson’s presentation will cover the trends and technologies in this area – and how MAP

is used in a wide range of food businesses and packaging machinery companies.

New HSE Acetylene Safety Regulations for 2014 will be in the spotlight courtesy of keynote speaker Dr. Alexander Tsavalos, HID Policy – Explosives, Health & Safety Executive, and Messer Group’s Danilo Ritlop (Senior Vice-President, SHEQ) will follow up with an insight into the work and safety performance of EIGA’s Safety Advisory Council (SAC), in his role as Chairman of the SAC. Two key talking points for the BCGA in recent years will later take centre stage, namely the misuse of drugs and the portrayal of gases in the media.

Firstly, Professor Raymond Hill of the UK Government Advisory Council on the Misuse of Drugs (ACMD) will present the role of the ACMD in advising government on the misuse of drugs.

Steve Gregory, Head of Health & Safety for the BBC, will then present on the BBC’s role to Inform, Educate and Entertain. Managing a team that supports programme makers, newsgatherers and live event teams in the UK and abroad, Gregory will touch on the use of compressed gases in TV and radio productions and consider whether it is possible to please all of the people all of the time. This is a subject that BCGA Chief Executive Doug Thornton has invested particular time in since taking up the reins at the association. He commented, ‘’We have engaged with the BBC, primarily though Steve for the last few years and have been very pleased with the improved rapport. The BBC has responded well to us and helped introduce us also to other broadcasters, but we have further to go to convince programme makers that fooling around with gases is not harmless good fun’.” gw DATE FOR THE DIARY BCGA Annual Conference 2014 10th April (2014) Marriott Hotel and Country Club Worsley Park Manchester (UK) www.bcga.co.uk

www.gasworld.com/specialfeatures

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February 2014 • gasworld | 61

EQUIPMENT PROFILE

An introduction to...

Cryogenic valves

A

s ship owners and builders look for more environmentally friendly fuel sources, LNG (liquefied natural gas) is an increasingly attractive option, which means the correct specification of cryogenic valve is vitally important.

Valves must offer high performance, longevity and be able to withstand the individual conditions of that application.

Some applications, especially those involving LNG, certainly put valves to the test, requiring them to withstand the extreme temperature fluctuations – down to as low as -196ºC, through to 800C. As well as temperature, there are a wide range of other performance requirements that need to taken into account. For example, fire safety should be considered for valves to be fitted on marine applications, to ensure that the valves will not leak in the event of a fire on board a vessel. Consideration should be given to pressure, actuation and environmental forces of the application which could cause leakage problems if the right valve is not selected for the job.

Cyclic thermal stresses can cause leakage during cool down and warm up operations if the design of the valve cannot compensate for extremes of temperature. Boil-off effects of a very cold liquid hitting much warmer metal should also be minimised too, with risks of pressure spikes reduced if valves are designed with minimum material mass to ensure cryogenic operating temperatures are reached as quickly as possible.

It is not just the valve body that needs to cope with the extreme temperatures.

Other parts, such as the spindle and gland packing, also need special attention. All cryogenic valves for marine service have to include firesafe glands and gaskets that can stand a minimum temperature of 925°C. This ensures that they will not melt if exposed to fire, and prevent gas leaking to atmosphere and causing a fire to escalate.

Selection of the correct valve needs to 62 | gasworld • February 2014

optimise safety and performance, giving reliability in operation and longevity.

This, of course, has to be balanced against cost, the true cost being the lifetime cost of ownership of the valve.

Globe valves are becoming increasingly widely specified in many industrial gas and LNG applications.

Recognised by their spherical body shape, this type of valve is based on a disc or plug that aligns to a mating body seat. Their design means that a greater level of fluid or gas control is possible, therefore making globe valves more suitable to regulating and throttling service than gate or ball valves. Ball valves have only two valve positions

“The design of globe valves means they are less prone to seat damage and wear...”

– on or off – which gives the operator no control of the throttling operation, whereas globe valves can be controlled across the whole range from fully closed to fully open. The design of globe valves also lends itself to automation, with the addition of pneumatic, hydraulic, or electrical actuation. In general, ball valves are also much heavier than globe valves, therefore where boil-off is a consideration then globe valves are becoming more widely used (particularly in LNG applications).

The design of globe valves means that they are less prone to seat damage and wear, due to the valve disc moving directly away from its mating seat.

In many applications, globe valves have therefore been considered to be more reliable for long-term sealing performance. However, if flow rate is an important factor, then globe valves may be less suitable to the application, as their internal shape naturally provides a higher level of flow resistance than gate and ball valves. Typical resistance

factors are between five and seven – the lower the resistance factor, the better the flow characteristics.

The final valves must be rigorously tested and their body and headworks must go through strict quality assurance procedures to meet Class requirements, under the 3.2 certification programme.

This is a performance level defined in the European Commission’s BSEN 10204:2004 standard. Any foundry wanting to supply marine service castings has to be approved by the Class Society.

For both land-based and marine applications, it is important to invest time at the outset in carefully selecting valves for a project, in order to ensure that the valve has the correct performance criteria and durability to meet what are often very testing applications. gw

WITH THANKS gasworld would like to thank Bestobell Valves for providing this equipment profile. Bestobell Valves is a world leader in the manufacture of cryogenic industrial gas and LNG valves, with over 50 years industrial gas experience and 15 years’ successfully supplying to LNG land-based and marine markets. www.bestobellvalves.com www.gasworld.com/specialfeatures

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February 2014 • gasworld | 63

COMPANY PROFILE

Shell-N-Tube

Enabling cryogenic applications

T

he Indian Space Research Organization’s (ISRO) successful GSLV launch this January, with indigenous cryogenic engine, catapulted India into the exclusive club of elite space technology. In this historic moment Shell-N-Tube had reason to feel proud of its own contribution as well; the twin coiled LN2-LOX/ GHe heat exchangers used for successful testing of the GSLV’s steering engine had been designed and manufactured by Shell-NTube. The company had also supplied several metres of vacuum insulated LOX and LH2 propellant lines, used for various needs at the cryogenic engine test facility.

Shell-N-Tube (SNT) was born out of a dream between two friends in 1987, each a professional in his own right. Munjal Mehta was a management graduate and gold medalist from the Indian Institute of Planning and Management, while Shankar Ghosh was a chemical engineer from Regional Engineering College, Durgapur. Both had a few years’ experience in the design, manufacture, operation and management of cryogenic air separation plants and applicationbased marketing in India.

With a meager total capital of $200, the first few years were difficult to say the least. SNT activity consisted of setting up oxygen supply systems for steel plants 64 | gasworld • February 2014

around India, including its first successful import substitute product – large ambient heated vaporizers up to single unit capacity of 4000nm3/hr in all the medium sized steel mills across the country during 1988-1994.

Money saved from these onsite projects helped purchase the company’s first factory at Wai, near Pune Maharastra in

“Today, SNT is the Indian leader for cryogenic vacuum insulated piping” 1994 and also heralded a change in its product profile. SNT introduced multilayer insulated vacuum jacketed piping into its standard manufacturing range, pushing the company to the forefront of the cryogenic applications market.

In 1997 SNT diversified into high-end cryogenic application systems, starting with liquid nitrogen, helium and oxygen heat exchangers for ISRO. This was quickly followed by large diameter liquid oxygen and hydrogen piping, used to test the turbo pump assembly of the C25 cryogenic engine. SNT’s vacuum jacketed liquid hydrogen and nitrogen pipelines are also used in the production of liquid hydrogen at ISRO’s hydrogen plant.

Later, in 2005, SNT entered the

advanced nuclear power generation market, carrying out a concept involving cryogenic absorption-based purification systems for radioactive cover gas in a prototype Fast Breeder Reactor at the Indira Gandhi Centre for Atomic Research. SNT was involved in India’s first LNG installations in 2007 at H R Johnson & Schott Glass. India’s largest LNG installation to date, involving four 100m3 LNG storage tanks, was also integrated, installed and commissioned complete with a vaporisation and pressure regulation system by SNT in 2011. In the same year, the company entered into the domain of plasma research and fusion reactors as it carried out the entire assembly of India’s first Steady State Tokomak – comprising 25 superconducting magnets, more than 500 parts, 1km of cryogenic pipes and 3km of TIG welding of SS plates. SNT also designed a liquid nitrogen cooling system for the project.

An Indian leader To meet the growing demand of its products, a second manufacturing facility was added in 2005 and a much larger third facility in 2013, bringing the company’s total production area to 10,0000 sq.ft. Today, SNT is the Indian leader for cryogenic vacuum insulated piping, with around 85% market share.

Its newest facility includes an array of high vacuum pumping systems, advanced welding equipment, and a group of skilled technicians and engineers.

Products include vacuum insulated piping up to 300mm diameter and 81 bar working pressure, vaporizers for air separation plants, liquid hydrogen and nitrogen-based helium gas cooling systems and heat exchangers, phase separators for cryogenic fluids, liquid nitrogen systems for a range of applications, and liquid argon systems for vehicle components manufacture.

Today Shell-N-Tube has evolved from being an equipment supplier to a onestop solution provider to the cryogenic industry – linking producers and users of industrial gases and ‘enabling cryogenic applications’ through intuitive systems. gw www.gasworld.com/companyprofile

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COMMUNITY

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The forum for gas and equipment views and information Where is the greatest potential for the distributive LNG business?

LNG is often cited as the stimulus for a North American energy revival, such is the region’s level of shale gas resource.

This potential would appear to be affirmed in a recent poll by gasworld. Participants in the poll suggested that the Americas offers strong potential for the distributive LNG business with 33% of the vote. However, the Asia-Pacific region appears to offer the greatest potential, commanding 67% of the participants’ vote.

33% 67%

Americas

Europe (0%)

Asia-Pacific

MEA (0%)

14% 14%

58%

14/01/2014 @airproducts Safety First:20th #airproducts Korea driver, Kim Jong-Sik, goes one million safe kilometers

16/01/2014 @LakeShoreCryo Lake Shore Temperature Monitor Advances Cryogenic Applications

*Poll live on the gasworld website from 16/12/2013 to 17/01/2014

Which aspect of the industry will benefit most from the LNG boom?

14%

06/01/2014 @AirLiquidenergy The Air Liquide group unveils its new signature, “Creatuve Oxygen”

Arguably the biggest windows of opportunity for the gases industry in the LNG boom is the distributive side of the business.

Our features this month describe the potentially ‘huge’ equipment market ahead, including future demand for cryogenic storage devices, cryogenic pumps and valves, and refuelling stations. According to a recent poll, however, the biggest potential lies in liquefaction technologies with more than half of the vote (58%).

Liquefaction technologies

Compressors

Valves and pumps

Tanks/Tankers

*Poll live on the gasworld website from 16/12/2013 to 17/01/2014

16/01/2014 @exxonmobil As global population grows, #energy demand will rise by about 35% by 2040

16/01/2014 @ICO2N University of Calgary researchers awarded more than $1 million in NSERC grants to research CO2 Capture

16/01/2014 @CAHydrogen Power to Gas (Hydrogen Energy Storage) launched in Germany soon coming to place near you?

EVENTS February 23rd – 25th AIIGMA 36th Seminar on Industrial Gases Hotel Shangri-La, Bangkok, Thailand www.aiigma.org 66 | gasworld • January 2014

February 26th – 28th 10th Annual Hydrogen and Fuel Cell Expo Shinjuku-ku, Japan www.fcexpo.jp/en/

March 24th – 27th Gastech 2014 Conferences and Exhbition Goyang City, South Korea www.gastechkorea.com

April 10th BCGA Annual Conference 2014 Marriott Worsley Park, Manchester, United Kingdom www.bcga.co.uk www.gasworld.com/community