Saturday, March 11, 2023

Propane, Butane, and LP Gas: Versatile Natural Gas Liquids: U.S. Propane Production, Exports, and NGL Recovery Innovations

 

(some of the content below is from my 2022 book Natural Gas and Decarbonization)


Propane

     Propane is well-known as the main component of liquid petroleum gas, or LP gas. LP gas is mostly propane with some butane. It is one of the natural gas liquids (NGLs), also known as hydrocarbon gas liquids (HGLs). The formula for LP gas can vary according to source. In the U.S. the formula is 60% propane (C3H8) and 40% butane/isobutane (both C4H10). About 70% of propane in the U.S. is made from natural gas and about 30% is made from petroleum as of 2021. The chemical formula for propane is C3H8. The lightest and least carbon emitting hydrocarbon molecule is methane (CH4). Methane is the main component of natural gas. The second lightest hydrocarbon is ethane (C2H6). Propane is the third lightest hydrocarbon. Ethane is the hydrocarbon most present in natural gas after methane. Propane is third. It has some advantages over methane (as compressed natural gas). It can occupy a smaller onboard space for transport vehicles which gives it a longer range. It can be easily transported in tanks via truck, rail, or even a car with small home use tanks. Thus, it can easily be used in remote places where there are no natural gas distribution lines. The emissions intensity of propane is higher than that of methane but lower than gasoline. It is also the cheapest way to make polypropylene which is a feedstock for plastics. It is still cheaper to heat with natural gas than LP gas, but LP gas does provide a higher BTU heat. Propane has great potential as a reasonably affordable and cleaner energy source to replace wood, charcoal, and dung cooking fires in developing countries, especially in Asia and Africa. These fires are very strongly implicated in indoor air pollution which is well documented as a significant health problem, especially among women and children in these countries. Governments in those countries should promote, support, and perhaps subsidize propane as a cleaner cooking fuel. Propane is also used as a transport fuel and has many other uses from flame weeding to drying grain and fruit to cutting and welding torches. Heaters, furnaces, stoves, smokers, BBQs, dryers, hot water tanks, refrigerators, soldering tools, kilns, forges, livestock floor sanitizers, industrial burners, jewelry melting and moulding tools, and other devices are powered by propane.

     Propane as R290 is very likely to become a refrigerant of choice for air conditioners around the world as it has very clear cost, performance and climate benefits relative to the HFCs now being used. The chemical industry has pushed back as they stand to lose market share and value from the change. They have argued that propane as a flammable hydrocarbon is unsafe but experts have said that those arguments are poor and rely on highly unlikely and extraordinary situations that would make the R290 dangerous. I wrote about it in my 2022 book Natural Gas and Decarbonization.  

     Propane can be a useful alternative vehicle fuel offering only slightly less combustion carbon emissions as gasoline and diesel, lower pollutant emissions, lower fuel costs, lower operating and maintenance costs, and range. Fuel cost depends on the “spread” between propane and gasoline/diesel, but propane is always cheaper. Propane Autogas is becoming especially popular for Class 3-7 fleet vehicles, notes a recent article in LPGas Magazine. This includes a lot of delivery, food and beverage, and buses. Many US Postal Service contractors are using Propane Autogas, saving about 40% over diesel costs. According to the DOE life-cycle greenhouse gas emissions are reduced by 13% using propane since it is more efficient to process it out from the natural gas stream than to make it through oil refining. It has good carbon emissions reductions in the medium-duty truck range, where it is being marketed the most. Compared to compressed natural gas (CNG) propane offers smaller on-board fuel storage space.  The Gas Technology Institute notes in their GHG and Criteria Pollutant Emissions Analysis from 2017 that “Propane has several advantages for fleets, including lower total-cost-of-ownership, comparable performance to conventional fuels, onsite fueling, reduced maintenance, and lower emissions. Small to mid-size fleets with high mileage and based at a single location are one of the most cost-effective applications that can benefit from lower fuel costs and reduced maintenance.” The same paper also notes that propane has a similar fuel efficiency to diesel in the medium-duty range which includes bobtail trucks. “For bobtail trucks, propane GHG emissions are 11% lower and NOx emissions are 4% lower than comparable diesel vehicles. SOx and particulates are also lower.   

     In Muskingum County, Ohio Sheriff’s Department there are 20 of 31 primary response vehicles that are powered by propane. These are added tanks and systems, at around $70K per vehicle. Apparently, fuel savings, system life, and less maintenance are favorable to economics. They began converting vehicles to propane in 2015. There have been no safety issues and system performance has been good.

     The Ohio Propane Gas Association website has some data on comparative costs, carbon and pollution emissions, and comparative maintenance costs. For medium duty trucks the advantages are a 12% reduction in greenhouse gases and a 4% reduction in NOx vs. diesel, decent but not stellar. For light duty truck the advantages are 36% reduction in NOx vs. diesel though only 5% less vs. gasoline. For light duty truck greenhouses gases there is a 12% reduction vs, gasoline. For school buses there is a 96% reduction in NOx for propane vs. diesel. This is important since NOx from buses contribute to city smog. The chart below, adapted from the data, shows more comparisons favorable to propane. It should be noted, however, that electric has the lowest fuel, maintenance, and total operating costs per mile by a wide margin.

 

 

 

total cost/mile

maintenance cost/mile

fuel cost/mile

bus purchase price

bus cost/lb. of NOx reduced

Propane

$0.24

$0.06

$0.16

$95,000

$91

Diesel

$0.53

$0.24

$0.28

$90,000

$1330

Electric

 

 

 

$300,000

$268

 

Vehicle Fleet and Bus Comparisons. Adapted from data from the Ohio Propane Gas Association. 

 

 

Butanes (Normal Butane and Isobutane)

 

     Butanes, the other components of LP Gas also have many uses alone or in combo with propane. There are two butanes, normal butane and isobutane, both C4H10. They have a vapor pressure 3 to 4 times lower than propane which makes butane an ideal source as a lighter fuel. A small tame flame is the result. In so-called “refined” iso-butane, or iso-butane with impurities removed, concentrated flames in special-made torches can heat up to 2700 deg F, which makes these specialized torches applicable for many specific scientific, medical, construction, soldering, and craft uses. Both butanes are also a common component in LP gas (liquefied petroleum gas) but propane is typically the main component. Butane is the lighter fuel of choice as well as being commonly used for camp stoves. It is also used as an aerosol propellant and increasingly as a refrigerant that replaces the CFCs (chlorofluorocarbons) and HFCs (hydrofluorocarbons) implicated in global warming and making a hole in the ozone layer. Butane does have one limitation as a heating fuel: it can fail to gasify in real cold weather. This is why butane is not higher in LP gas. Since camp fuel is mostly used in the summer, the butane canisters are popular. Butane is also a feedstock for butadiene, a key component of synthetic rubber. Isobutane is the preferred form for refrigerants and much of that is now coming from natural gas processing of shale gas. It is mostly made from normal butane in isomerization units at alkylate plants. Alkylate is made from isobutane and NGL byproducts. Alkylate and normal butane are both used as gasoline additives. Butane lowers vapor pressure and alkylate increases octane rating. Alkylate typically makes up 11-13% of gasoline and more than that in the summer months. So, one can say that NGLs (both butanes) are a significant feedstock for gasoline. Appalachian wet shale gas has also increased normal and iso butane supplies.

     In a similar fashion to propane as the R290 refrigerant there is an isobutane refrigerant R600a that has great potential for use in domestic refrigerators. R600a has better performance, lower energy use, negligible global warming potential, and zero ozone depletion potential compared to the HFC 134a. In 2019 R600a began to be used in some U.S. refrigerators. The energy and cost savings are significant and should be regarded as a significant decarbonization action as well since the global warming potential of R600a is about 500 times less than that of 134a.

 

 

Natural Gas Liquids Exports from the U.S., Mainly from Shale Gas

 

     Natural gas liquid (NGL) exports from the U.S. have skyrocketed since shale gas resources were unleashed through horizontal drilling and high-volume hydraulic fracturing from around 2010. Through 2020 propane exports make up 60% of those exports. The main reason is as its use as a polypropylene feedstock. Making propane or polypropylene from petroleum is both more expensive and more carbon intense than making it from propane. That is expected to continue as the highest number of global petrochemical projects expected to be built and expanded between 2023 and 2027 are polypropylene projects. China is expected to have the most. As noted, US exports of hydrocarbon gas liquids have increased dramatically since 2010. In those 11 years exports increased by a whopping 25 times from about 5 million barrels per day to about 75 million barrels per day. In 2020 Japan was the biggest buyer followed distantly by Canada. China, Mexico, South Korea, India, Indonesia, Brazil, the Netherlands, and the UK are also key buyers. For 2020 propane is by far the most exported natural gas liquid at 60% of all exported NGLs followed by normal butane then ethane then natural gasoline then isobutane. The graph below just shows the growth in HGL/NGL exports alongside the growth in propane exports, the major component of HGL exports. Clearly, the advent of shale gas production is the driver for this export growth. Ethane exports from the US have grown by 20 times since 2014 after pipelines, export terminals, and new ethane tankers were built. Normal butane exports have grown similarly to ethane exports. In contrast, natural gasoline exports have grown only very slightly in recent years and isobutane exports have dropped. Since about 30% of propane is derived from oil refining that suggests about 18% of total NGL exports could be derived from refineries rather than natural gas wells if the average is similar with exports.   

    

 


US Exports of Hydrocarbon Gas Liquids vs. US Exports of Propane. Data Source: Energy Information Administration

 

 

New Propane Recovery Innovation Announced That Will Boost Natural Gas Processing Profitability

 

     A new innovation for propane recovery improvement at natural gas processing plants was recently announced by BCCK, an engineering, procurement, fabrication, and field construction services firm. The company reported in February that propane recoveries were improved to greater than 99% in ethane rejection and that their new design can also improve ethane recovery. Their new design utilizes a skidded BCCK patent-pending design, the G2R-Flex, “which will be available to enhance propane recoveries at many of the existing 200 MMSCFD gas subcooled process (GSP) facilities operating throughout the United States.” This improvement may be able to help many underperforming cryogenic natural gas processing plants and boost their profitability at current propane prices. BCCK describes their new design as a simple, efficient, and effective modification. They offer complete turnkey capabilities through full EPC services on this new propane recovery design. The new successful tests of the design were implemented at a premier midstream group in Ohio’s Marcellus-Utica Basin.

 

New Innovation in Dividing Wall Column Distillation

 

     Another innovation announced in 2022 is a patent for dividing wall column distillation that can be used to combine two distillation towers into one for the extraction of purity products, or different NGLs or combinations of NGLs. Dividing Wall Column distillation has been explored since the 1940’s. The design can potentially lower both capex and opex by 20 to 50%. It is used for separating a multicomponent mixture into three or more high purity product streams in a single column. The method is being used more and more in refineries as company DWC Innovations recounts on their website. DWC technology is able to combine two distillation columns into one. Energy consumption, emissions, and costs are reduced.  Engineering firm, Burns & McDonnel is adapting the method for NGL fractionation. They announced a patent on their design in early 2022. This tech allows the usual four column NGL fractionation facility to be reduced to three columns (fractionation towers) and still yield the five purity products: ethane, propane, normal butane, iso-butane, and natural gasoline. As noted, the tech can also be used in oil refineries and chemical facilities. The new tech reduces footprint, carbon emissions, and costs. Gas Processing News writes: “In 2019, Burns & McDonnell completed construction of the first dividing wall column train in the NGL fractionation industry for a confidential midstream company. The facility processes 125,000 bpd of Y-grade feed. The DWC methodology was successful in lowering capital costs and providing significant operational and utility savings after startup.” The tech can be customized and scaled for different facility requirements. With lower capex, opex, and emissions this tech could become widely adopted in the future.     

 

 

References:

 

Natural Gas and Decarbonization: Key Component and Enabler of the Lower Carbon, Reasonable Cost Energy Systems of the Future: Strategies for the 2020’s and Beyond. Kent C. Stewart. 2022. Amazon Publishing.

 

Petrochemicals New Build and Expansion Projects Analysis by Type, Development Stage, Key Countries, Region and Forecasts, 2023-2027. GlobalData. February 1, 2023. Petrochemicals New Build and Expansion Projects Analysis by Type, Development Stage, Key Countries, Region and Forecasts, 2023-2027 (globaldata.com)

 

BCCK boosts propane recovery at cryogenic gas processing facility. Gas Processing News. February 27, 2023. News (gasprocessingnews.com)

 

BCCK BOOSTS PROPANE RECOVERY WITH NEXT-GENERATION TECHNOLOGY AT CRYOGENIC GAS PROCESSING FACILITY. BCCK Boosts Propane Recovery with Next-Generation Technology at Cryogenic Gas Processing Facility - BCCK

 

BCCK HOLDING COMPANY TO ENHANCE RECOVERIES AT CRYOGENIC GAS FACILITY IN MARCELLUS-UTICA BASIN. BCCK Holding Company to Enhance Recoveries at Cryogenic Gas Facility in Marcellus-Utica Basin - BCCK

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