| TURBINE
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
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.
|
Ken Kennedy ran K.B.. Kennedy Engineering
Co.
he built two LNG plants.
One in 1977-1982 in Hobbs, New Mexico,
a 17 MMSCFD plant.
That ran several years before being shutdown
and dismantled.
The second plant was built for Amoco Oil
Co.
in 1982, a 10 MMSCFD plant
that operated for about one year before
being
shutdown, dismantled and moved.
We had the first ASME Sec. VIII, Division 1, pressure-vessel code-shop in the state. We had our own pipeline construction and operating crew, a sizable engineering staff and were building plants for our own account with our own operating company, Capitan Energy. The shop incorporated as Kenweld. We entered a joint venture with SPS as Chala Cryogenics covering several plants.
In 1982 we entered into an agreement with Beech Aircraft, Alternative Energy Division, for design and construction of packaged LNG plants. At this time it was evident LPG and gas prices were falling quite rapidly. We opted to sell our plants and contracts and to concentrate on LNG package construction. We sold the White Ranch plant to Mapco and took a three year operating contract. In mid 1986 it became obvious Beech Aircraft was not going to sell any plants for LNG production. We opted to liquidate K. B. Kennedy Engineering with all technologies developed becoming the property of K. B. Kennedy.
1980's JOINT VENTURE: KRYOPAK, INC. & SALOF REFRIGERATION. Kennedy returned to the Kansas City area and set up a relationship with George Salof on a joint venture basis. It became obvious that LNG was the fuel of the future and why not now. Bids submitted to Bechtel eastern Division for a turnkey 10 MMscfd plant in Rhode Island, to Bechtel International for a barge mounted 15 MMscfd plant in Mozambique and to McClousky, former president of Distrigas, for a 10 MMscfd plant in New England with Canadian gas. None of these plants were built. We submitted a bid to Burlington Northern for 15 MMscfd plant in Lincoln, Nebraska. We re-bid the plant to build and operate on a throughput basis with a guaranteed take or pay. This occurred because of a proposed joint venture agreement with Linde, a Division of Union Carbide. It soon became obvious Burlington Northern Railway was not ready for a plant. Roy Adkins organized Cryogenic Fuels Inc. (CFI) after beech's abandonment of their Alternative Fuels Division. CFI, a fine organization put together by Roy, Bill Rutherford and Jack Shaefer, approached us to continue the agreement we had with Beech with CFI. We agreed to do this. KRYOPAK and CFI entered into a sales agreement wherein they were to represent us in sales on a commission basis with a limited agency agreement, non-exclusive. |
| United Asia Oil and Kryopak It is with great anticipation to incorporate Raphael Pumpelly's [Pumpelly History Here] United Asia Oil group in Asia together with previously mentioned locomotive groups. In 1981 one of our engineers met with Mr. Pumpelly and began a mutual interest in natural gas fueled locomotive engines just beginning with Energy Conversions Inc. in Tacoma Washington and Northern States Power in Minnesota where our engineer lived. By 1982 Burlington Northern Railroad became interested in the Northern States Power Companies dual fueled project and ten years later LNG locomotives were running coal from Wyoming into Minnesota. By 1990, Kryopak's interest in mining corporations grew to over 102 major North American corporations. We held a LNG Business Meeting in 1991 to explain why Kryopak's LNG is less than $0.20 per gallon. In 1991, George Salof, Ken Kennedy
and Charlie Bartholomew met with
Mr. Pumpelly in his Los Angeles office. |
Raphael Pumpelly's LNG vehicle fuel plant for a concession (1969-1997 largest undrilled structure in Asia) never materialized because lack of interest in Thailand's locomotive use and natural gas power generation from the property. However, his family's 130 year interests in Central Asia look more promising.
A dedicated locomotive project
An entire $500 million LNG locomotive
project
is guaranteed by combining, gas availability, U.A.0. investors,
competent
worldwide oil and gas operators in the group, appropriate returns on
investment
from railroads, and the efficiency of Kryopak's LNG plant.
This case is based on United Asia Oil operating
control of gas volume (350 Bcf), pressure & composition over 10
years
into a Kryopak LNG plant from a dedicated concession.
Our experience understanding both mining and
locomotive
needs together with numerous trips to corporate headquarters, and field
locations, leave us with the opinion where gas availability (low
priced)
and unavailable diesel (or higher priced) exist, LNG will repay all
costs.
Time for recovery of investment depends on
variables
such as fuel price differential (great in Asia), unit vehicle cost and
delivery (all costs in) and profit to all parties involved. 5020
references
generated for this Asian project alone say $2,000 US per hour will be
saved
by the Ministry of Rail on 200, MP1200-G switchers and 30, 3400
horsepower
road locomotives from just one 120,000 gpd LNG plant.
We were impressed with Asian official
presentations
here in the U.S. in June and think both mining and petroleum industries
will benefit from this exposure.
We think railroads like the performance of the
MP 1200 G switchers and the GM-EMD 40-2's.
It is also possible to incorporate LNG into the
large mining equipment. Newmont in particular comes to mind, as
they
were the first mining company to set aside moneys for 2,000 horsepower
LNG haul trucks. The first 1200 horsepower mining trucks were
converted
by United States Steel in 1967 on iron ore mines in Northern Minnesota.
It has always been Kryopak's intention to work LNG vehicle fuel with coordination in high fuel users.
Switcher Locomotives produce at the rate of
four
(4) per month.
Kryopak's LNG plant (120,000 gallons per day)
will be up and running sixteen (16) months from project start in U.S.
to
production of LNG fuel.
GM-EMD dual fuel, diesel, and LNG (3400
horsepower)
locomotives produced at the rate of two (2) per month.
Sixty four (64) switchers and thirty (30) road
locomotives can be on location at start up of Kryopak LNG operations in
sixteen (16) months.
Thirty-four (34) months after LNG plant startup, one hundred and thirty six (136) more switchers will be operating off the LNG plant, bringing locomotive operations total to 200 switchers and 30 road locomotives.
Provisions-
United Asia Oil dedicates three hundred and
fifty
billion cubic feet of gas to this sized locomotive project, at an
agreeable
gas purchase value: the railroad agrees to purchase the LNG, at an
agreeable
price.
A $500,000,000 USD project will proceed,
funding
arranged by us.
Currently, we have 40 Requests for Quotes out on Kryopak's LNG processes on 4 continents, several Islands, floating production storage off-loading platforms, barge platforms, and several Regasification LNG plants for the Largest LNG carriers- June 2003