sh the golden era of natural gas ffff - alfa laval · natural gas prices in major markets, july...

The golden era The golden era of of naturalnatural gas gas

Sammy HulpiauSammy HulpiauTobias SvenssonTobias Svensson

Energy & EnvironmentEnergy & Environment

Natural gas Natural gas –– the future energy the future energy sourcesource

Long-term drivers:

� Cleanest fossil fuel

� 250 years of proven3 000

4 000

5 000

Mto

e

World primary energy demand by fuel

www.alfalaval.com

� 250 years of provenreserves

Source: OECD/EIA, WEO 2011

1980

0

1 000

2 000

1990 2000 2010 2020 2030 2035Oil

Gas

Coal

Biomass

Nuclear

Other renewables

Hydro

Growth driversGrowth drivers

Short-term drivers:� Temporary or permanent shutdown

of nuclear powerstation

� China 5-year plan

– From 3.8% in 2010 to 8.3% in 2015 of the

energy mix

www.alfalaval.com

energy mix

� Low gas price

© Alfa Laval Slide 3

Growth drivers Growth drivers –– priceprice

Natural gas prices in major markets, July 2007 to April 2011

Do

llars

pe

r M

Btu 16

14

12

10

8

United States

United Kingdom

Germany

Japan

www.alfalaval.com© Alfa Laval Slide 4

2008 2011Oil prices 99,57 87Gas Prices MMBTU in US 9,12 3,8Gas/Oil ratio 11 23Jan 2008

8

6

4

2

0

Jan 2009 Jan 2010 Jan 2011

Conventional & unconventional gasConventional & unconventional gas

Unconventional gas

� shale gas

Conventionalnon-associated

gas

Conventionalassociated

gas

Coalbed methane

Land surface

www.alfalaval.com© Alfa Laval

� shale gas

� tight gas

� coalbed methane

Source: EIA. U.S. Energy Information Administration

Sandstone

Seal

Gas-rich shale

Tight sandgas

Oil

ConventionalConventional & & unconventionalunconventional gasgas

Natural gas production by type – WEO 2011

Bcm Shale

Coalbed methane

Tight

Conventional

Share of unconventional

5 250

4 500

3 750

3 000

28%

24%

20%

16%


Share of unconventional(right axis)

2008

2 250

1 500

750

0

2015

12%

8%

4%

0%

2020 2025 2030 2035

Largest gas producers Largest gas producers – Projection 2035

Largest gas producers by type in 2035, WEO 2011

Conventional

Unconventional

Russia

United States

China

Iran

Qatar


Canada

Algeria

Australia

Saudi Arabia

Turkmenistan

0 200 400 600 800 bcm1 000

Gas demand vs productionGas demand vs production

Natural gas net imports by major region WEO 2011

Bcm 1 200

1 000

800

600

400

200

OECD North America

India

OECD Asia

China

OECD Europe

Natural gas net exports by major region WEO 2011

Latin America

OECD Oceania

Africa

Middle East

E. Europe/Eurasia

Other Asia

Bcm 1 200

1 000

800

600

400

200


Top 3 – biggest importers

� OECD Europe

� China

� OECD Asia

Top 3 – biggest exporters

� Eastern Europe / Eurasia

� Middle East

� Africa

Need for transportation

200

0

2010 2015 2020 2025 2030 2035

200

0

2010 2015 2020 2025 2030 2035

Investments Investments –– gas supply infrastructuregas supply infrastructure

World cumulative investment (2008-2035) in gas-supply infrastructure

WEO 2011Total = $ 7,978 billion

Exploration and development

Transmission and distribution

LNG*

622717


* Total include an additional $86 billion of investment in LNG carriers

LNG*1,936

4,543

2,137

5,124

The natural gas chain The natural gas chain –– and Alfa Laval opportunitiesand Alfa Laval opportunities

Gas usage

Gas fired power stations

Gas-fired boilersGas drilling


Gas transportationGas processing

Gas drillingGas drilling

www.alfalaval.com

� Drilling mud cleaning, cooling and mixing

� Offshore fresh water generation

� Wastewater treatment


Gas drillingGas drilling–– Mud treatmentMud treatment


Drilling mud decanters Drilling mud coolers

Acquisition of Vortex Systems Acquisition of Vortex Systems –– Expanded product offering into drilling industryExpanded product offering into drilling industry

� Patented equipment with clear operator values

� Increased end-user presence

� Mud mixers and dust recovery

www.alfalaval.com

systems


Gas usage


Gas fired boilersGas drilling



Gas processingGas processing

www.alfalaval.com

� Gas treatment

� Liquefaction & regasification

� FLNG – Floating production of LNG

© Alfa Laval

Gas processingGas processing–– Gas treatmentGas treatment

www.alfalaval.com

� Removal of water and impurities

� Central cooling plate heat exchangers

� Wastewater treatment


Many critical heat exchangers positions

Sweet gas Stripping column

Gas processingGas processing–– Gas treatmentGas treatment


Interchanger

ReboilerSour gas

Gas processing Gas processing –– Liquefaction & regasification Liquefaction & regasification

Liquefaction

� Reduce volume by factor 600

� Cooling down the gas to -162°

� Central cooling system PHE+ Filter

Regasification

� Regasification by heating the LNG

� Central heating system PHE + Filter

www.alfalaval.com


Gas processing Gas processing –– new trendnew trendFLNG FLNG –– Floating LNG plantFloating LNG plant

4

5

6

7

8

Expenditu

re($

bill

ion)

Liquefaction

Import


0

1

2

3

4

Expenditu

re

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

FLNGFLNG–– Alfa Laval offeringsAlfa Laval offerings

Central coolingincl filters

MEG heat exchangers

Amine heat exchangers


Desalination units

MEG heat exchangers

Utility heat exchangersFuel oil separators MEG separators


Gas usage





Pipeline transportation Pipeline transportation –– Gas transportation by compressionGas transportation by compression

1st stage compressor

2nd stage compressor

3rd stage compressor

30 bar 85 bar 250 bar


Sc

rub

be

r

Condensate

Gas cooler

Sc

rub

be

r

Gas cooler

Sc

rub

be

r

Gas cooler

Sc

rub

be

r

Condensate

Pipeline Pipeline transportationtransportation–– Gas pipeline protection Gas pipeline protection

� MEG – mono ethylene glycol treatment


Pipeline Pipeline transportationtransportation–– Gas pipeline protection Gas pipeline protection

� MEG – Mono Ethylene Glycol –to avoid hydrate formation


Gas pipeline protectionGas pipeline protection–– Alfa Laval offer to the MEG regeneration processAlfa Laval offer to the MEG regeneration process

www.alfalaval.com

Transportation via LNG Transportation via LNG carrierscarriers–– Alfa Laval offeringsAlfa Laval offerings

Steam generation

Waste heat recovery

Desalination

Exhaust gas cleaningInert gas systems

Filtration

Fuel conditioning

Cooling and heating

Thermal fluid heating

Ballast water treatment


Crankcase gas cleaning

Alfa Rex

Alfa Nova

Cooling and heating

Bilge water treatment

Tank cleaning

Separation

Transportation via LNG carriersTransportation via LNG carriers


� Inert gas systems addedthrough the acquisition of Aalborg Industries

� Alfa Laval’s traditionalproduct portfolio + Specific heat exchangerslike AlfaNova and Alfarex


Gas usage





Primary use of natural gasPrimary use of natural gas

World primary natural gas demand by sector and scenario

Est. 2035 WEO - 2011

2008

Powergeneration

Buildings &agriculture

Industry


0

Industry

Transport

Other

250 500 750 1 000 1 250 1 500 1 750 2 000 2 250 bcm

Gas usageGas usage –– gasgas--fired power fired power stationsstations

Waste Heat Recovery Unit

(WHRU)


Gas usage Gas usage –– gas gas boilersboilers

Industry & agriculture

� For heating and hot water/steam production

� Industrial market

� Aalborg gas fired boilers

Housing & buildings

� For heating and hot water production

� OEM supply to boiler manufacturers or distributors

www.alfalaval.com

� Aalborg gas fired boilers


or distributors

� Copper brazed and plate heat exchangers

Gas usage Gas usage –– petrochemicalspetrochemicals

Petrochemical processing

� Fertilizers

� Consumer goods


ConclusionsConclusions

Gas usage



� The golden era of natural gas has started

� Alfa Laval has opportunities in all steps of the natural gas chain



the natural gas chain

� Alfa Laval has the products, the presence and the know-how to capture this great opportunity

sh the golden era of natural gas ffff - alfa laval · natural gas prices in major markets, july...

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