IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v40y2012i1p317-328.html
   My bibliography  Save this article

Evaluation of utilization alternatives for stranded natural gas

Author

Listed:
  • Khalilpour, Rajab
  • Karimi, I.A.

Abstract

Options for exporting natural gas from stranded oil and gas fields to markets include pipelines, LNG (liquefied natural gas), CNG (compressed natural gas), GTL (gas to liquids), GTS (gas to solids), and GTW (gas to wire). Thus, the key question is which option is the most robust in ensuring the security of investment over a project life cycle against market fluctuations, trade embargos, political changes, technical advances, etc. Excluding pipelines, LNG, CNG, and GTL have attracted increasing investor attention during the last two decades. Although studies abound on economic comparisons of these processes, a systematic method to address this important problem in the presence of uncertainty seems missing in the literature. This work presents such a method based on decision analysis cycle and considers oil and gas prices as uncertain. Using NPV (net present value) as the decision criterion, it presents the computation of “expected NPV” of each gas utilization alternative to identify the best option. It includes the entire well-to-market supply chain, from extraction, conversion, and transportation, to re-conversion at the target market. Finally, it identifies the sweet spots for LNG, CNG, and GTL alternatives for different reservoir capacities and market distances.

Suggested Citation

  • Khalilpour, Rajab & Karimi, I.A., 2012. "Evaluation of utilization alternatives for stranded natural gas," Energy, Elsevier, vol. 40(1), pages 317-328.
    • Handle: RePEc:eee:energy:v:40:y:2012:i:1:p:317-328
    DOI: 10.1016/j.energy.2012.01.068
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544212000837
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2012.01.068?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Thomas, Sydney & Dawe, Richard A, 2003. "Review of ways to transport natural gas energy from countries which do not need the gas for domestic use," Energy, Elsevier, vol. 28(14), pages 1461-1477.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khan, Mohd Shariq & Lee, Moonyong, 2013. "Design optimization of single mixed refrigerant natural gas liquefaction process using the particle swarm paradigm with nonlinear constraints," Energy, Elsevier, vol. 49(C), pages 146-155.
    2. Kim, Juwon & Seo, Youngkyun & Chang, Daejun, 2016. "Economic evaluation of a new small-scale LNG supply chain using liquid nitrogen for natural-gas liquefaction," Applied Energy, Elsevier, vol. 182(C), pages 154-163.
    3. Sarhosis, V. & Jaya, A.A. & Thomas, H.R., 2016. "Economic modelling for coal bed methane production and electricity generation from deep virgin coal seams," Energy, Elsevier, vol. 107(C), pages 580-594.
    4. Davor Dujak, 2017. "Mapping Of Natural Gas Supply Chains: Literature Review," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 17, pages 293-309.
    5. Guo, Yingjian & Hawkes, Adam, 2019. "Asset stranding in natural gas export facilities: An agent-based simulation," Energy Policy, Elsevier, vol. 132(C), pages 132-155.
    6. Guo, Yingjian & Hawkes, Adam, 2019. "The impact of demand uncertainties and China-US natural gas tariff on global gas trade," Energy, Elsevier, vol. 175(C), pages 205-217.
    7. Guo, Yingjian & Hawkes, Adam, 2018. "Simulating the game-theoretic market equilibrium and contract-driven investment in global gas trade using an agent-based method," Energy, Elsevier, vol. 160(C), pages 820-834.
    8. Mahdi Fasihi & Dmitrii Bogdanov & Christian Breyer, 2017. "Long-Term Hydrocarbon Trade Options for the Maghreb Region and Europe—Renewable Energy Based Synthetic Fuels for a Net Zero Emissions World," Sustainability, MDPI, vol. 9(2), pages 1-24, February.
    9. Cruz, Matheus de Andrade & Brigagão, George Victor & de Medeiros, José Luiz & Musse, Ana Paula Santana & Kami, Eduardo & Freire, Ronaldo Lucas Alkmin & Araújo, Ofélia de Queiroz Fernandes, 2023. "Decarbonization of energy supply to offshore oil & gas production with post-combustion capture: A simulation-based techno-economic analysis," Energy, Elsevier, vol. 274(C).
    10. Dzikri Firmansyah Hakam & Ayodele O. Asekomeh, 2018. "Gas Monetisation Intricacies: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 174-181.
    11. Khalilpour, Rajab, 2014. "Multi-level investment planning and scheduling under electricity and carbon market dynamics: Retrofit of a power plant with PCC (post-combustion carbon capture) processes," Energy, Elsevier, vol. 64(C), pages 172-186.
    12. Brito, T.L.F. & Galvão, C. & Fonseca, A.F. & Costa, H.K.M. & Moutinho dos Santos, E., 2022. "A review of gas-to-wire (GtW) projects worldwide: State-of-art and developments," Energy Policy, Elsevier, vol. 163(C).
    13. Qyyum, Muhammad Abdul & Ali, Wahid & Long, Nguyen Van Duc & Khan, Mohd Shariq & Lee, Moonyong, 2018. "Energy efficiency enhancement of a single mixed refrigerant LNG process using a novel hydraulic turbine," Energy, Elsevier, vol. 144(C), pages 968-976.
    14. Lawal, Mohammed S. & Fairweather, Michael & Gogolek, Peter & Ingham, Derek B. & Ma, Lin & Pourkashanian, Mohamed & Williams, Alan, 2013. "CFD predictions of wake-stabilised jet flames in a cross-flow," Energy, Elsevier, vol. 53(C), pages 259-269.
    15. Goodell, John W. & Kumar, Satish & Li, Xiao & Pattnaik, Debidutta & Sharma, Anuj, 2022. "Foundations and research clusters in investor attention: Evidence from bibliometric and topic modelling analysis," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 511-529.
    16. Xu, Jiuping & Tang, Min & Liu, Tingting & Fan, Lurong, 2024. "Technological paradigm-based development strategy towards natural gas hydrate technology," Energy, Elsevier, vol. 289(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Sajid & Farhan Ahmed & Shafique Ahmed & Aadil Panhwar, 2018. "Viability of Liquefied Natural Gas (LNG) in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 146-154.
    2. Farrokhifar, Meisam & Nie, Yinghui & Pozo, David, 2020. "Energy systems planning: A survey on models for integrated power and natural gas networks coordination," Applied Energy, Elsevier, vol. 262(C).
    3. Hamidzadeh, Zeinab & Sattari, Sourena & Soltanieh, Mohammad & Vatani, Ali, 2020. "Development of a multi-objective decision-making model to recover flare gases in a multi flare gases zone," Energy, Elsevier, vol. 203(C).
    4. Mofid, Hossein & Jazayeri-Rad, Hooshang & Shahbazian, Mehdi & Fetanat, Abdolvahhab, 2019. "Enhancing the performance of a parallel nitrogen expansion liquefaction process (NELP) using the multi-objective particle swarm optimization (MOPSO) algorithm," Energy, Elsevier, vol. 172(C), pages 286-303.
    5. Gomes Relva, Stefania & Oliveira da Silva, Vinícius & Peyerl, Drielli & Veiga Gimenes, André Luiz & Molares Udaeta, Miguel Edgar, 2020. "Regulating the electro-energetic use of natural gas by gas-to-wire offshore technology: Case study from Brazil," Utilities Policy, Elsevier, vol. 66(C).
    6. Sanya Du & Yixin Qu & Hui Li & Xiaohui Yu, 2022. "Methane Adsorption Properties in Biomaterials: A Possible Route to Gas Storage and Transportation," Energies, MDPI, vol. 15(12), pages 1-14, June.
    7. Kim, Juwon & Seo, Youngkyun & Chang, Daejun, 2016. "Economic evaluation of a new small-scale LNG supply chain using liquid nitrogen for natural-gas liquefaction," Applied Energy, Elsevier, vol. 182(C), pages 154-163.
    8. Brito, T.L.F. & Galvão, C. & Fonseca, A.F. & Costa, H.K.M. & Moutinho dos Santos, E., 2022. "A review of gas-to-wire (GtW) projects worldwide: State-of-art and developments," Energy Policy, Elsevier, vol. 163(C).
    9. Takeya, Satoshi & Mimachi, Hiroko & Murayama, Tetsuro, 2018. "Methane storage in water frameworks: Self-preservation of methane hydrate pellets formed from NaCl solutions," Applied Energy, Elsevier, vol. 230(C), pages 86-93.
    10. Guo, Hao & Tang, Qixiong & Gong, Maoqiong & Cheng, Kuiwei, 2018. "Optimization of a novel liquefaction process based on Joule–Thomson cycle utilizing high-pressure natural gas exergy by genetic algorithm," Energy, Elsevier, vol. 151(C), pages 696-706.
    11. Xu, Jiuping & Tang, Min & Liu, Tingting & Fan, Lurong, 2024. "Technological paradigm-based development strategy towards natural gas hydrate technology," Energy, Elsevier, vol. 289(C).
    12. Cao, Yan & Mohammadian, Mehrnoush & Pirouzfar, Vahid & Su, Chia-Hung & Khan, Afrasyab, 2021. "Break Even Point analysis of liquefied natural gas process and optimization of its refrigeration cycles with technical and economic considerations," Energy, Elsevier, vol. 237(C).
    13. Castelo Branco, David A. & Szklo, Alexandre S. & Schaeffer, Roberto, 2010. "Co2e emissions abatement costs of reducing natural gas flaring in Brazil by investing in offshore GTL plants producing premium diesel," Energy, Elsevier, vol. 35(1), pages 158-167.
    14. Saghi Raeisdanaei & Vahid Pirouzfar & Chia-Hung Su, 2022. "Technical and economic assessment of processes for the LNG production in cycles with expander and refrigeration," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 13407-13425, November.
    15. Sun, Qibei & Kang, Yong Tae, 2016. "Review on CO2 hydrate formation/dissociation and its cold energy application," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 478-494.
    16. Szoplik, Jolanta, 2016. "Improving the natural gas transporting based on the steady state simulation results," Energy, Elsevier, vol. 109(C), pages 105-116.
    17. Egging, Ruud & Holz, Franziska & Gabriel, Steven A., 2010. "The World Gas Model," Energy, Elsevier, vol. 35(10), pages 4016-4029.
    18. Raghoo, Pravesh & Surroop, Dinesh & Wolf, Franziska, 2017. "Natural gas to improve energy security in Small Island Developing States: A techno-economic analysis," Development Engineering, Elsevier, vol. 2(C), pages 92-98.
    19. Rasool, Muhammad & Khalilpour, Kaveh & Rafiee, Ahmad & Karimi, Iftekhar & Madlener, Reinhard, 2021. "Evaluation of Alternative Power-to-Chemical Pathways for Renewable Energy Exports," FCN Working Papers 4/2021, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised Apr 2023.
    20. Girma T. Chala & Abd Rashid Abd Aziz & Ftwi Y. Hagos, 2018. "Natural Gas Engine Technologies: Challenges and Energy Sustainability Issue," Energies, MDPI, vol. 11(11), pages 1-44, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:40:y:2012:i:1:p:317-328. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.