LNG Liquefaction Facility Serving New York State Consumer Natural Gas Needs
LEHIGH VALLEY, Pa. (January 11, 2002) — The performance of KeySpan Corporation's (NYSE: KSE) new 6.3 million standard-cubic-feet-per-day (SCFD) liquefied natural gas (LNG) liquefaction plant is exceeding its original design. That is good news for KeySpan's energy-dependent customers, and for Air Products and Chemicals, Inc. (NYSE:APD), which in 2001's last quarter completed the process design, equipment supply, and start-up of the new liquefier at KeySpan's peakshaving facility located in Holtsville, N.Y.
The plant, a nitrogen recycle facility, showcases the enhancements that have made this technology a superior alternative to the more traditional mixed refrigerant LNG liquefiers, especially for smaller plant sizes. It is the first peakshaving facility in the United States that has been constructed to utilize the nitrogen recycle process since the 1970s. KeySpan's choice of nitrogen recycle will provide power efficiency nearly equivalent to mixed refrigerant technology, but allows for lower initial capital costs and projected lower maintenance costs. "The plant started up without a hitch and exceeded all contractual performance criteria upon initial testing," said John D. Dubbs, product manager–Small LNG Plants for Air Products Hydrocarbon Processing. "There are several advantages to nitrogen recycle technology, including low initial capital cost, ease of operation, turndown efficiency and environmental benefits."
"The entire project from the design through construction and performance testing was a complete success," said Dean Schaefer, manager of the Holtsville LNG Plant. "This new liquefier system will improve reliability and enhance the strategic role of LNG in KeySpan's gas portfolio."
Air Products utilized its technological expertise in the process design, equipment supply, and start-up of the facility. The company also was able to take advantage of continued general industry improvements for nitrogen recycle technology in areas such as improved expander efficiency, decreased seal gas loss of nitrogen, and other performance enhancements and improvements in process equipment. Additionally, Air Products' technical team developed a process scheme and control strategy that eliminated variations in tail gas stream heating value due to the cyclic operation of system reactivation. This is important to KeySpan in providing a constant heating value in the gas stream to its customers while allowing the liquefaction facility to operate at full rates during the hot summer months, when customer demand for natural gas is at a minimum.
"Operationally, Key Span will benefit from faster start-ups as well as quicker and more predictable response to operator commands. There is really only one control variable—that being nitrogen pressure," Dubbs said. "KeySpan will not have to be concerned with controlling refrigerant composition, and will be able to operate at reduced rates if desired, without a significant loss of efficiency."
Dubbs also said there is another added environmental benefit to the choice of nitrogen recycle when considering this technology, or a mixed refrigerant system. "If any process or storage venting occurs, the only element potentially escaping is nitrogen," he said. "Nitrogen is a naturally occurring element and makes up 78% of the air we breathe. It poses no environmental hazard."
Air Products' work on the project was performed as a subcontractor to Chicago Bridge & Iron Company N.V.
A member of the S&P 500, KeySpan is the largest distributor of natural gas in the Northeast, with 2.4 million gas customers and more than 13,000 employees. KeySpan is also the largest investor-owned electric generator in New York State and operates Long Island's electric system serving 1.1 million customers. With headquarters in Brooklyn, Boston and Long Island, KeySpan also manages a dynamic portfolio of service companies. They include: KeySpan Energy Delivery, the group of regulated natural gas utilities; KeySpan Home Energy Services, an energy product, repair and service company for residential and small commercial customers; and KeySpan Business Solutions, a full-service energy product, repair and services company for business customers. KeySpan also has strategic investments in natural gas exploration, production, pipeline transportation, distribution and storage, Canadian gas-processing and fiber-optic cable. For more information about the company, visit KeySpan's Web site at: http://www.keyspanenergy.com.
Air Products and Chemicals, Inc. (www.airproducts.com) is the world's only combined gases and chemicals company. Founded more than 60 years ago, the business has annual revenues of $5.7 billion and operations in 30 countries. Air Products is a market leader in the global electronics and chemical processing industries, and a long-standing innovator in many industrial markets, including coatings, adhesives and polyurethanes. The company distinguishes itself through its 18,000 employees around the world, who build lasting relationships with their customers and communities based on understanding, integrity and passion. |
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