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Australia Natural Gas Liquefaction

01/31/2013 12:19 AM

Investigating global electricity costs, I found australia's are among the highest. I was surprised to find they export LNG from existing liquefaction plants with MANY more under construction and planned. So mainly to you aussies, what are your thoughts on this from a nationalist and global perspective?

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Anonymous Poster #1
#1

Re: australia natural gas liquefaction

01/31/2013 1:45 AM

What exactly is your point? What do you think is the connection between LNG export and the electricity costs?

On the fun side: You can not export LNG from a none existent "liquefaction" (?) plant.

Make your point clear so an Aussie can answer correctly!

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#2
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Re: australia natural gas liquefaction

01/31/2013 2:12 AM

http://www.prnewswire.com/news-releases/australia-to-lead-lng-market-by-2017-with-liquefaction-capacity-expected-to-reach-124-million-tons-by-2017-181815421.html

My point should be obvious. Please continue. Oh, wait, Australia has several operating LNG liquefaction facilitys. Please Goggle (luch it up).

I blame my missspelling on Kindl fier.

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Anonymous Poster #1
#4
In reply to #2

Re: australia natural gas liquefaction

01/31/2013 9:07 AM

Sorry, I dont get your point. The export has nothing to do with high electricity costs.

Did you actually research how much electricity is made using natural gas in Australia? You already know that liqifaction is just the solution to the transport of the gas and nothing else?!

Furhter if you have enough of gas you certainly will export it. Again your point is not clear.

You have been asking for an opinion and yet have offered none.

What is your take on this? Where do you think is the connection?

I think the answer you get from the Ozzies is that electricty cost is to high (as everybody else in any other country will tell you) and that the LNG market is keeping the economy uprightor even gives it a downright boost.

What is your point?

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#5
In reply to #1

Re: australia natural gas liquefaction

01/31/2013 9:42 AM
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Anonymous Poster #1
#10
In reply to #5

Re: australia natural gas liquefaction

01/31/2013 7:57 PM

Got it!

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#3

Re: australia natural gas liquefaction

01/31/2013 4:34 AM

Well I'm no Aussie, but I don't think you have to be one to understand why this is happening. It's a combination of the market economy and standard politics.

You're probably thinking that it would make more sense for Australia to use the gas it will be exporting to instead produce power, and lower the cost of electricity for all Australian businesses and consumers. If Australia were a socialist country operated for the benefit of its common owner-citizens, that would indeed make sense. But it's not. And there is a tremendous market right now for LNG; with its nuclear reactor fleet shut down, Japan is desperate.

If Australia used its natural gas resources to produce cheap power for Australia, the companies producing the gas would be forced to forego the lucrative export market and sell at a much lower price to domestic utilities. "Well screw that! If we can't make a fortune selling to the highest bidders, then we won't drill more gas wells. We'll take our marbles and go play somewhere where a business-friendly government will give us a better deal." So say the business moguls.

Of course you can't export natural gas without liquefaction plants and terminals for LNG tankers. So there's a more interesting question that immediately arises: how come these things are getting built in Oz and not in the U.S. of A? There's no shortage of gas producers who would dearly love to get access to the LNG market. But the necessary facilities can't get through the damned permitting process! Why not?

That's where politics comes in. It's a matter of who has the clout. In Australia, it's the extraction and export industries. In the U.S., the extraction and export industries have become less important than they once were, and don't wield that much power. There are, however, a large number of industries that are benefiting enormously from the ridiculously low price of gas in the US. In alliance with environmental and consumer groups, they are able to block expedited permitting of the export facilities for LNG. They can make the process drag on forever and effectively kill the projects.

It's the same tactics that coal interests used to kill nuclear power in the U.S. in the 1970's,

Cynical? Who, me? Sure, but am I cynical enough?

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#6

Re: Australia Natural Gas Liquefaction

01/31/2013 12:23 PM

To move methane, you must compress it or make it liquid. Hoop stress calculations will tell you how thick you need a compressed gas tank for 3000 PSI that is 1000 feet long and 200 feet in diameter. (if it ever broke, it might make orbit?).

To make it liquid takes energy, the Australians must sell it or throw it away, so they use some of it to run the plant that makes it liquid and sell the liquid in large LPG ships.

click on these, read on

LPG ships

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#8
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Re: Australia Natural Gas Liquefaction

01/31/2013 5:08 PM

I have a good understanding of the process. My brother works for air products. Some of you touched on my point, which is as a consumer, I would be pissed to pay more for my electricity than someone in Japan. I am afraid that the global market will lead the US to cash in and then I will be playing house husband (because my chemical company employer will lay me off) while my wife rakes in the big bucks working in oil and gas. Hey, maybe that will be a good thing. Please forgive typos as I have moved to the phione.

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Anonymous Poster #1
#9
In reply to #8

Re: Australia Natural Gas Liquefaction

01/31/2013 7:56 PM

Well, you better ask an Ozzie why and if he is willing to pay more money for the daily beer. You have a very mood point there, because the most people in Ozzie Land dont even know what electricity prices are in Japan or anywhere else in the world. There will be always a place somewhere in the world where things are cheaper than where you are.

Scrap the I-Phone. It does not make one smarter.

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#11
In reply to #9

Re: Australia Natural Gas Liquefaction

01/31/2013 10:39 PM

Well that's not fair - we've got google. I'm going to send a letter to them tonight and find out what the electricity prices in Japan are like. I'm sharpening my quill right now...

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#13
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Re: Australia Natural Gas Liquefaction

01/31/2013 11:20 PM

There are several ways to liquify NG. Cooling by evaporation adds to the process, where the "vented" gases can fire power generators. Just like the tanker uses vented product:

1. to keep the LNG cold (or read liquid)

2. to power the ship engines.

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#16
In reply to #6

Re: Australia Natural Gas Liquefaction

02/01/2013 1:31 AM

How about exporting as Methanol

--to allow the world to convert to DME and save Oil/LPG/Diesel

And Australian vastly scattered communities use such DME to operate small Gas Turbine Gensets at night - when PV has sun set.

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#7

Re: Australia Natural Gas Liquefaction

01/31/2013 4:21 PM

The Aussies have recently elected a Socialist Government. Like the US, they are terminating coal fired plants and have implemented some sort of onerous carbon tax.

It may be easier and less bothersome just to raise rates to limit use, sell the excess to someone willing to pay, collect the profits and all is well. Works every time. Why fight the will o' the people.

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#12

Re: Australia Natural Gas Liquefaction

01/31/2013 11:09 PM

Do you pay more than the equivalent of US0.43/kWh?

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#14
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Re: Australia Natural Gas Liquefaction

02/01/2013 12:03 AM

Electricity domestic ~0.26$/kWh, industrial ~0.10$/kWh that includes a 10% carbon tax at the point of production.

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Anonymous Poster #1
#15
In reply to #14

Re: Australia Natural Gas Liquefaction

02/01/2013 12:44 AM

You have to wipe your brain now! You are not supposed to know prices in US or even on the Bahamas. Did you google prices in Japan? Stop it. It is radioactive and not worth looking at. It just makes your heart fail because its so damn cheap.

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