Turnkey Plants Under Construction
Kennedy design from 5 million to 1 billion SCFD
TURBINE EXPANDER
TECHNOLOGY vs.
RECIP.  EXPANDER
1950's  LNG patents

 1960,s MORE LNG PATENTS
three LNG patents from our technology
and patents awarded

1960's-1970's additional patents
Operated  as an engineering
and  mechanical contractors.
 10 MMSCFD lng plant
1970's-1980's KRYOPAK FORMS  KANSAS
LNG PACKAGED PLANTS
Joint Venture: Kryopak, Inc. & Salof Refrigeration.
17 MMSCFD LNG plant.
1980's-1990's
Australia, Indonesia, Norway and Chile
1990's - 2000 LNG as Vehicle Fuel

2000 - 2004
Get on with application of LNG technology 3.5 MMcfgpd plant China
2004 - 2005
Alternative Fuel Source To Diesel
Prepared by Ken Kennedy
Chief Executive Officer

INTRODUCTION TO KRYOPAK 

    KRYOPAK had its beginning in 1976.  KRYOPAK initially operated as a division of K. B. Kennedy Engineering Co., Inc. (A Missouri corporation organized in January 1961.) The following is a history of K. B. Kennedy Engineering Co., Inc. (Precursor of KRYOPAK Inc.).
    K. B. Kennedy, the organizer, and owner of K. B. Kennedy Engineering Company, worked as a Project Manager for the J. F. Pritchard Company.  It was with the Pritchard Co. that first involvement with LNG began in 1957.  Pritchard received the contract to perform engineering services for a liquefaction plant from Continental Oil using the cascade process.  This process was essentially the same as noted in Perry's Chemical Engineering, Handbook,  1950 Edition.  This system required three levels of refrigeration and three refrigerants. 

    Brief History of LNG

    Natural gas liquefaction dates back to the 19th century when British chemist and physicist Michael Faraday experimented with liquefying different types of gases, including natural gas. German engineer Karl Von Linde built the first practical compressor refrigeration machine in Munich in 1873. The first LNG plant was built in West Virginia in 1912. It began operation in 1917. The first commercial liquefaction plant was built in Cleveland, Ohio, in 1941. The LNG was stored in tanks at atmospheric pressure.13 The liquefaction of natural gas raised the possibility of its transportation to distant destinations. In January 1959, the world's first LNG tanker, The Methane Pioneer, a converted World War ll liberty freighter containing five, 7000 Bbl aluminum prismatic tanks with balsa wood supports and insulation of plywood and urethane, carried an LNG cargo from Lake Charles, Louisiana to Canvey Island, United Kingdom. This event demonstrated that large quantities of liquefied natural gas could be transported safely across the ocean.

    Over the next 14 months, seven additional cargoes were delivered with only minor problems. Following the successful performance of The Methane Pioneer, the British Gas Council proceeded with plans to implement a commercial project to import LNG from Venezuela to Canvey Island. However, before the commercial agreements could be finalized, large quantities of natural gas were discovered in Libya and the gigantic Hassi R' Mel field in Algeria which are only half the distance to England as Venezuela. With the start-up of the 260 million cubic feet per day (mmcfd) Arzew GL4Z or Camel plant in 1964, the United Kingdom became the world's first LNG importer and Algeria the first LNG exporter. Algeria has since become a major world supplier of natural gas as LNG.

    After the concept was shown to work in the United Kingdom, additional liquefaction plants and import terminals were constructed in both the Atlantic and Pacific regions. Four marine terminals were built in the United States between 1971 and 1980. They are in Lake Charles (operated by CMS Energy), Everett, Massachusetts (operated by Tractebel through their Distrigas subsidiary), Elba Island, Georgia (operated by El Paso Energy), and Cove Point, Maryland (operated by Dominion Energy). After reaching a peak receipt volume of 253 BCF (billion cubic feet) in 1979, which represented 1.3 percent of U.S. gas demand, LNG imports declined because a gas surplus developed in North America and price disputes occurred with Algeria, the sole LNG provider to the U.S. at that time. The Elba Island and Cove Point receiving terminals were subsequently mothballed in 1980 and the Lake Charles and the Everett terminals suffered from very low utilization.

    The first exports of LNG from the U.S. to Asia occurred in 1969 when Alaskan LNG was sent to Japan. Alaskan LNG is derived from natural gas that is produced by ConocoPhillips and Marathon from fields in the southern portions of the state of Alaska, liquefied at the Kenai Peninsula LNG plant (one of the oldest, continuously operated LNG plants in the world) and shipped to Japan. The LNG market in both Europe and Asia continued to grow rapidly from that point on. The figure below shows worldwide growth in LNG since 1970.

    In 1999, the first Atlantic Basin LNG liquefaction plant in the western hemisphere came on production in Trinidad. This event coupled with an increase in demand for natural gas in the U.S., particularly for power generation; and an increase in U.S. natural gas prices, resulted in a renewed interest in the U.S. market for LNG. As a result, the two mothballed LNG receiving terminals are being reactivated. Elba Island was reactivated in 2001. In October 2002, the Federal Energy Regulatory Commission (FERC) gave approval to Dominion Resources for its plans to re-open Cove Point LNG facility in 2003.
    1950's
    INVENTIONS & PATENTS: A NEW LNG PLANT PROCESS.
      In researching methods to improve this technology, Kennedy made an evaluation of an expander technology utilizing a Mollier Diagram as a reference point.  It was obvious to develop a theoretical process utilizing expansion energy of natural gas, used in the lowest level of the cascade process.  This process would to cover the full range covered by the three refrigerants.  The first step studied air separation processes.  The means to develop the cold refrigerant occurred next, since fractionation operations were not important.  The equipment utilized then was a reciprocating expander.
NEW TURBINE EXPANDER TECHNOLOGY vs.
EXISTING RECIPROCATING EXPANDER
A commercially available reciprocating expander was not then available to handle the large quantities of gas required for the 100 MMscfd plant under consideration.  Cooper Bessemer agreed to build such a machine but could not give the proper warranties.  An evaluation of the largest machines in service showed a very high maintenance factor as methane has very little lubricating value.  Having experience in hydraulic turbines and in steam turbines it was a logical step to explore centrifugal machines.  All the turbine manufacturers were concerned with low temperature lubricating problems. Air bearings were not very well developed at that time.  Theoretical benefits were evident.
1960's
K. B. KENNEDY ENGINEERING COMPANY, INC.:
MORE LNG PATENTS 1960's-1970's
K. B. KENNEDY ENG. Inc.; New Mexico;
MORE PATENTS; LNG PLANTS & GAS RESERVES 1960's-1970's
KRYOPAK FORMS IN KANSAS: LNG PACKAGED PLANTS.
Kryopak History
Salof Cryogenic Companies


Salof Cryogenic Companies
provided service to customers for over 25 years.

We believe in and work continuously to meet the goal of our mission statement, which is "To be the leading supplier of gas liquefaction and process refrigeration systems, meeting customer requirements with superior solutions."

Our engineered systems incorporate only the highest quality components to insure the integrity of your system.
Each system is completely assembled on one or more structural steel bases, insulated, pre-wired and tested in our well equipped facilities before shipment.
Once on-site, minimum time is required for process connections and commissioning.


KRYOPAK
designs and manufacturers Liquid Natural Gas and Liquid Petroleum Gas (LPG) plants
from 500,000 SCFD (6,000 gal/day), to 180,000,000 SCFD (1,000,000 tons/yr).


1961 to 1972 operated primarily as engineering contractors and to some degree as consultants.
Our initial support came from the Columbia Gas System group of companies. We performed work for them through 1968. This work was essentially all in LNG, some which has already been discussed above.
United Fuel Gas, Manufacturer/s Light and Heat, Atlantic Seaboard and Columbia Hydrocarbon, all subsidiaries of the Columbia System. These were primarily for the extraction of energy from let down stations converted to liquefaction. We performed many of these studies. Louisville, Ashland, Baltimore, Washington, Philadelphia and Charleston are some examples. The net LNG accumulation ranged from five to ten MMSCFD.

Other customers over this period included Panhandle Eastern, Farmland Industries, Distrigas, Natural Gas Pipeline, Northern Natural, Kansas-Nebraska, Union Oil of California, Houston Natural Gas, Lone Star Gas Co., Mississippi Chemical and Union Oil of California. During this period we also worked as mechanical contractors performing work for American Oil, Mobil, Sinclair, Olin Mathieson Chemical, Continental Oil and Northern Natural.

Chala Cryogenics 1972
Nitrogen rejection process.

Acquired substantial acreage of high nitrogen gas reserves in South Eastern New Mexico, moved offices to Roswell, and built our first nitrogen rejection plant for our own account. We traded our plant and reserves (estimated as a proven recoverable of 400 billion scf by Gruery) for an equity in Chala Cryogenics. Under this venture we performed all engineering, procurement, fabrication, installation and plant operations for the venture. We established an ASME coded shop and built up a substantial engineering organization, a fabrication division, a plant construction division, a pipeline construction division and a plant operating division.

 With Chala we designed and built a 30 MMSCFD Nitrogen rejection plant at Hobbs, New Mexico. We liquefied 17 MMSCFD of gas and processed for a demethanized product a 90 MMSCFD stream. The gas was liquefied primarily to skirt FPC rulings. The New Mexico gas could not be transported to Texas without coming under FPC jurisdiction. However, FPC had earlier ruled they had no jurisdiction over the transport of LNG. The intent was to transport LNG by truck to three electric generating plants in Texas. The LNG would be vaporized in exchange with the boiler fuel gas, thus accomplishing vaporization without the expenditure of energy and extracting the ethane and heavier hydrocarbon from the gas stream. The Hobbs plant was built and the Texas plants designed when the new energy regulations were put in prohibiting interstate pipelines from selling boiler fuel to power plants. Southwestern Public Service Co. purchased gas from Pioneer, an intrastate pipeline company in Texas, to replace the gas supplied by El Paso Natural Gas. Pioneer, in their contract, prohibited Southwestern from processing the gas. Therefore, the liquefaction plant was never operated. The processing equipment and four 12,500 gallon trailers were sold. We dissolved the venture at our request and exchanged our equity for an over riding royalty in the gas production.

Amoco Production - We designed and built a 10 MMSCFD nitrogen rejection plant for Amoco, installed in Pennsylvania. The gas was 20% nitrogen with very little heavier hydrocarbons in the stream. We treated the gas at 2000 psig and dropped the pressure to 450 psig for the nitrogen rejection process. This plant was on chromatograph control and specified to maintain a plus or minus 5 Btu sales gas.

In actual operation we obtained a spec of plus or minus 2 Btu/scf. This plant was built so it could be monitored from Houston and Chicago. All plant records were transmitted to Houston and Chicago by telecommunications. The plant could be shut down from either place or could be put into automatic recycle if the streams were off spec. These nitrogen rejection plants operated at temperatures as low as -308°F. All the expertise developed in LNG processing was used in these plants and more.

OTHER PROCESSING PLANTS - We have designed many LPG extraction plants throughout Texas, New Mexico and Colorado. Some were for our account and others were on contract. Most were for a deep ethane cut. Some gas streams were as high as 12% hydrogen sulfide and 25% carbon monoxide.

KRYOPAK ORGANIZATION - KRYOPAK was initially a division of K.B. Kennedy Engineering Co., Inc. At the end of 1986 K.B. Kennedy Engineering was liquidated and KRYOPAK was kept active due to the prospect of LNG contracts for motor fuel. In 1981 we worked with El Paso Natural Gas in two LNG plants for the Santa Fe and Southern Pacific Railroads. In 1982 we worked with Beech Aircraft Alternative Fuels Div. When this division shut down in 1986 we felt it advisable to liquidate K.B. Kennedy Engineering. We had worked with Sohio on liquefaction plants on the North Slope, Alaska from 5 to 50 MMSCFD for motor fuel. We were also working with Sohio on LNG for their copper mines. When British Petroleum exercised their stock votes, Sohio had to retract all outside activities other that oil and gas production. When Burlington Northern purchased El Paso Natural Gas they shut down all of El Paso's interests and activities in LNG.

Kryopak designed LNG plants are simple, cost effective and are more efficient than other manufacturers. Pipeline or flare gas can easily be transformed into LNG, with minimal waste or external resources. Our technology is based on turbo expanders to generate the refrigeration with the gas entering the plant. Once our computer simulation mass balances and piping and instrumentation drawings are viewed you will see the benefits. Our plants are simple to operate and require minimal staffing, due to our PLC/PC based computer control systems and operator interface. Our plant refrigeration reaches cool down and equilibrium very quickly, about 2 hours from a hot start.

Maintenance is kept to a minimum as the major equipment consists of: a gas engine driven compressor, a brazed aluminum heat exchanger and two turbo expander compressors.
Australia
 Mr. Laurie noted that the project will also underwrite the Company’s capability to develop the market for LNG in the Pilbara and Kimberley regions as an alternative fuel source to diesel, especially for road and rail transport. “We expect this to be of particular interest to mining companies with large operations in the region”, Mr. Laurie added.
Cleveland, Ohio, 1944
In 1939, the first commercial LNG peakshaving plant was built in West Virginia. In 1941, the East Ohio Gas Company built a second facility in Cleveland. The peakshaving plant operated without incident until 1944, when the facility was expanded to include a larger tank. A shortage of stainless steel alloys during World War II led to compromises in the design of the new tank. The tank failed shortly after it was placed in service allowing LNG to escape, forming a vapor cloud that filled the surrounding streets and storm sewer system. The natural gas in the vaporizing LNG pool ignited resulting in the deaths of 128 people in the adjoining residential area. The conclusion of the investigating body, the U.S. Bureau of Mines, was that the concept of liquefying and storing LNG was valid if "proper precautions were observed."25 A recent report by the engineering consulting firm, PTL,26 concluded that, had the Cleveland tank been built to current codes, this accident would not have happened. In fact, LNG tanks properly constructed of 9 percent nickel steel have never had a crack failure in their 35-year history.
Osh
July  2004
January 2005
June 2006