Ural Centre for Energy Efficiency and Environment 2\16\2004
Reply Monday, February 16, 2004
responce 2\16\2004
General Director of UCEE, Valery



Ural Centre for Energy Efficiency and Environment
Кулигин А.П. <kuligin@ucee.sky.ru>Monday, February 16, 2004 4:33 AM
Dear Mr. Salof

We have found at your Web-site the information about "Kryopak" company and it's production. As far as we understood, you produce the Natural Gas Liquefaction plants of a large spectrum of capacity.

We are interested in the LNG plant of the low capacity in the range from 5,000 up to 100,000 cubic meters of incoming gas per day. Unfortunately we couldn't find detailes about the LNG Plants of the low capacity


Coudn't you give us an additional information, such as the standard capacities, stationary or transportable unit, the composition of plant, the cost, is the equipment available right now or it necessary to order it in advance, what is the lag time between ordering and shipping, etc.

A few words about our company.
The Ural Centre for Energy Efficiency and Environment (Russia)is now involved into the program of the gas flaring reduction and utilization of the associated gas. One of the proposed method of utilisation is the AG liquefication and use for the local heating. The program is under development and covers the oil fields of the Western Siberia.

Now we are conducting the pre-feasability study and looking for the appropriate equipment, make the economical caculations, etc.  
Best regards, General Director of UCEE,
Dr. Valery Anoufriev
mailto:kuligin@ucee.sky.ru

Dear Mr. Salof,

A year ago we asked you and received from you the information about KRYOPAK
equipment for natural gas lequefaction. Thank you for this information. We are
still interested in the use of this equipment, but for the purposes of the
associated gas liquefaction and production of the following liquid products:
• Methane-ethane;
• Propane-butane;
• Casing-head petrol (pentane and higher hydrocarbons).

Couldn't you clarify a couple of issues, please?

1. Does Kryopac produce the specific equipment for the associated gas liquefaction?
2. What are the requirements to the associated gas composition (for instance,
the percentage of the heavy fractions) and to the composition stability
(the range/percentage of the fractions' variation)? It is well known that the
associated gas composition could change significantly during the well operation.

Thank you in advance.

The Chief Engineer
Of the Ural Centre
for Energy Efficiency and Environment S. Yarkov

mailto:sergey@ucee.sky.ru






General Director of UCEE, Valery Anoufriev
Monday, February 16, 2004 9:24 AM
Dear Charlie Bartholomew,
Thank you for quick responce and valuable information which you have kindly sent. We will study this information and contact you as necessary.
Best regards,
mailto:kuligin@ucee.sky.ru

Reply Monday, February 16, 2004 6:24 AM
cc: George Salof Dave Kennedy
Dear Dr. Valery Anoufriev and A.L. Kuligin;
Thank you for your interest in our Kryopak, Inc., LNG plants.

Small scale liquifiers between 5,000 and 15,000 cubic meters of total  gas per day have been designed. However, these sized Kryopak LNG plants  are difficult to justify for Rate of Return on Investment. In addition,  these sized plants usually occur at Pressure Letdown Stations.

 From 15,000 to 50,000 cubic meters of total gas per day we recommend  building these at twice their capacity and operating them at less  capacity until the market develops.

All of these Kryopak LNG plants are skid mounted -- capable of  relocation. However, keep in mind the storage tanks (usually 10 days of  daily capacity) are less mobile.

 If you are planning to move these LNG plants, then consideration could  be given to Russian LNG rail cars used as storage tanks.  Each will hold  5,000 cubic meters of  natural gas (75,000 litres liquid natural gas).

Composition of Kryopak's plants are completely dependent upon total gas  treated -- composition and pressure.  For instance, is the gas pure  methane, or a combination of other gasses that either need to be removed  (sulfur compounds, carbon dioxide, etc.) or saved (ethane, propanes, etc.).

Costs of Kryopak LNG plants: 7,000 cubic meters per day -- (3,000 G/D) Kryopak LNG Plant (250,000 SCFD) The budget price for a 7,000 cubic meters per day Kryopak LNG Plant  completely packaged on 2 skids: $2,000,000.00 (US dollars), FOB New  Braunfels, Texas.     (1) Compressor skid, approximately 16' long x 8' wide.     (1) C02 treating, dehydration, liquefaction and expander skid,  approximately 40' long x 10' wide.     This plant will require about 400 horsepower for compression per  1,000,000 SCFD.     Utilities Required:     A) Fuel Gas 65,000 SCFD     B) Electrical 500 kW-Hr/D     C) Cooling Water None

14,000 cubic meters per day Kryopak (6,000 G/D) LNG Plant (500,000 SCFD)     The budget price for a 6,000 G/D LNG Plant completely packaged on  two skids is $2,500,000.00 (US dollars), FOB New Braunfels, Texas.     (1) Compressor skid and     (1) C02 treating, dehydration, liquefaction, and expander skid.     This plant will require about 650 horsepower for compression per  1,000,000 SCFD.     Utilities Required:     A) Fuel Gas 115,000 SCFD     B) Electrical 875 kW-Hr/D     C) Cooling-Water None

28,000 cubic meters per day (12,000 G/D) Kryopak LNG Plant (1,000,000 SCFD)     The budget price for a 12,000 G/D LNG Plant on three skids is  $3,500,000.00 (US dollars) FOB New Braunfels, Texas.     This plant will require about 700 horsepower for compression per  1,000,000 SCFD.     Utilities Required:     A) Fuel Gas 200,000 SCFD     B) Electrical 1500 kW-Hr/D     C) Cooling-Water None

100,000 cubic meters per day (42,000 G/D) Kryopak LNG Plant (3,500,000 SCFD)     The budget price for a 42,000 G/D LNG Plant on three skids is  $6,200,000.00 (US dollars) FOB New Braunfels, Texas.     This plant will require about 2000 horsepower for compression per  1,000,000 SCFD.

Unfortunately, the equipment is not available right now due to the  extraordinary demand for LNG plants worldwide.  The sized plants you are  requesting information on are being developed for several places such as  South America and other places in Russia.  It will take us 9 months to deliver the above mentioned LNG plants after  receiving a 25% down payment on the size plant you desire.

Kryopak's process for liquefaction of natural gasses is not based on a  multiple refrigerant basis like the AG processes: Kryopak's process is  isentropic.

Regarding LNG use for heating: Russia, China, and the US, among others, produce storage vessels and  revaporization process vessels for heating. However, these are more  expensive than LPG (propane, butane) vessels.

Regarding scale of LNG production for Return on Investment: The larger the Kryopak LNG plant, the better Return on Investment  because the LNG is produced at a lower value than a small LNG plant.   Therefore, I suggest purchasing a larger plant than needed and operating  as less capacity PROVIDED the market will grow into the larger size in  LESS than 16 months.

If you would care to continue discussions about our Kryopak plants, then  please send us the gas you with to treat: composition, pressure, and as  much information as possible you can give us. We realize the pressure will be low if this is all flared gas. Siberia  is such a large place with temperature extremes we need to include in  our engineering report. Please give us those extremes for our  calculations on the exact places you with to treat gas.

Perhaps, the total gas stream only needs to be treated for acid gasses  (sulfur, CO2) and needs no other gas separations (ethane, propanes,  butanes).  In that case, the total liquefaction, after acid gas  treatment, could be sent to a local heating company for use in their  centralized steam heating plant. If transportation were done by Russian LNG rail cars, then only a  vaporization unit would be needed at that heating company and rail cars  used for 10 day storage there  We understand these Russian LNG rail cars  are less than US$ 100,000 each delivered into the US. Perhaps this would  cost you 10% less.

Thank you for your inquiry and my best regards on your projects;

Charlie Bartholomew engineer Salof Companies, Kryopak Inc., LNG Division