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A Publication of ABS Energy Project Development

ABS Joins Think Tank of Gas Storage Innovators


ABS is supporting the safety and security of natural gas storage in man-made subterranean salt caverns (lower left).

A floating or fixed offshore LNG receiving terminal (right) can be located near salt caverns and gas markets, serving differing requirements for offload rate, storage capacity and send-out capacity. This terminal concept, one of several proposed concepts, eliminates the need for large cryogenic LNG storage tanks.

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BS’ expertise with buoy mooring technology is being tapped to support a cooperative
government/industry research project to study the feasibility of storing natural gas unloaded directly from ships into underground salt caverns. ABS, which has classed some 40 single-point moorings (SPMs) was invited to assist industry with this pioneering cooperative research program in gas transport and storage, says William J. Sember, ABS Vice President of Energy Development.

“The novel concept of storing natural gas in salt caverns presents an alternative to the construction of new infrastructure,” said Sember.

The proposed system will use seawater to vaporize liquefied natural gas (LNG), unload the product at an SPM terminal and inject it into underground salt caverns, avoiding the use of above-ground tanks.

“The proposed system would bring two distinct benefits to the industry. Offshore LNG receiving is a ‘coming wave’ for reasons of increased safety, security and logistical practicality. Safe underground storage eliminates the need for cryogenic liquid storage tanks at land-based LNG receiving terminals,” he said.

Spearheaded by Conversion Gas Imports (CGI), the joint industry program receives majority funding from the US Department of Energy. ABS joins a cross-section of industry leaders participating in the study, including AGL Resources, Bluewater Offshore, BP, Dominion, EnCana, ExxonMobil, FLUOR, FMC Technologies, HNG Storage, Marathon, Paragon Engineering Services, PB Energy Storage Services and SBM-Imodco, among others.

With many years of LNG technical experience, ABS will provide enormous value to the project, says Mike McCall, CGI President and CEO.

“In moving from the concept stage, through the research process and finally to commercial application, the independent analysis and expertise of ABS is critical to the project,” said McCall.

McCall advises that an important but lesser-known aspect of the concept is that the salt caverns are man-made facilities, not natural formations, constructed through drilling operations and solution mining.

Solid subterranean salt formations are drilled out and injected with seawater or fresh water if onshore. Saturated brine is then displaced, leaving man-made caverns with sizes and shapes specifically engineered for hydrocarbon storage needs. This method is currently employed by the US Strategic Petroleum Reserve, in various locations, for approximately 650 million barrels of crude oil.

Underground salt caverns are a logical way to use an indigenous storage medium for natural gas, says Lance Van Anglen, CGI Vice President for business development.

“Our goals are security, economy and capacity. Some of these salt formations are miles across and have huge capacities. Underground storage for natural gas can be accomplished at relatively low costs, and because salt becomes a ‘plastic’ substance at certain temperatures and pressures, these spaces are sealed tanks, like huge pressure vessels. You can’t get safer,” he said.

The safety, security and economy of adapting this existing storage method for natural gas depends upon the single-point mooring of LNG vessels followed by offshore delivery and regasification, says Sember.

Conceptual plans for the CGI project call for an offshore receiving terminal at a proposed location on Vermilion Block 179 in the Gulf of Mexico. Two manned, bridge-linked platforms installed in approximately 100 feet of water would receive LNG from a weather-vaned SPM terminal approximately 6,400 feet away.

The patented process would employ high-pressure pumps and high-capacity heat exchangers to heat LNG into a dense phase gas, allowing for direct unloading into underground salt caverns at a rate comparable to conventional liquid offloading.

Earlier this year, ABS classified the world’s first offshore LNG deepwater port buoy.

 

 
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