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91-555: Kinder Morgan owns an interest in or operates approximately 83,000 miles (134,000 km) of pipelines and 143 terminals. The company's pipelines transport natural gas, liquefied natural gas , ethanol , biodiesel , hydrogen , refined petroleum products, crude oil , carbon dioxide , and more. Kinder Morgan also stores or handles a variety of products and materials at their terminals such as gasoline, jet fuel, ethanol, coal, petroleum coke, and steel. The company has approximately 72,000 miles (116,000 km) of natural gas pipelines and

182-417: A compressed natural gas (CNG) engine, the mixing of the fuel and the air is more effective since gases typically mix well in a short period of time, but at typical CNG pressures the fuel itself is less energy-dense than gasoline or diesel, so the result is a less energy-dense air–fuel mixture. For an engine of a given cylinder displacement, a normally-aspirated CNG-powered engine is typically less powerful than

273-603: A Burnaby neighborhood and 70,000 liters into nearby Burrard Inlet. The crude oil utterly carpeted cars, houses, roads, and lawns. About 250 people had to be evacuated and the spill cost $ 15 million to clean. An August 15, 2021 pipeline rupture near Coolidge, Arizona left two dead and one severely burned. Liquefied natural gas Liquefied natural gas ( LNG ) is natural gas (predominantly methane , CH 4 , with some mixture of ethane , C 2 H 6 ) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th

364-612: A deal worth $ 71 billion. The transaction closed on November 26, 2014. Prior to November 26, 2014, the Kinder Morgan group publicly traded companies included Kinder Morgan, Inc. (NYSE: KMI), Kinder Morgan Energy Partners, L.P. (NYSE: KMP), Kinder Morgan Management, LLC (NYSE: KMR) and El Paso Pipeline Partners, L.P. (NYSE: EPB); a merger transaction combined all under Kinder Morgan, Inc. (NYSE: KMI), on November 26, 2014. On December 23, 2013, Kinder Morgan announced that, through its Kinder Morgan Energy partner subsidiary, it would acquire

455-461: A gasoline or diesel engine of similar displacement. For that reason turbochargers are popular in European CNG cars. Despite that limitation, the 12-litre Cummins Westport ISX12G engine is an example of a CNG-capable engine designed to pull tractor–trailer loads up to 80,000 pounds (36,000 kg) showing CNG can be used in many on-road truck applications. The original ISX G engine incorporated

546-563: A large natural gas field was discovered in Algeria. International trade in LNG quickly followed as LNG was shipped to France and Great Britain from the Algerian fields. One more important attribute of LNG had now been exploited. Once natural gas was liquefied it could not only be stored more easily, but it could be transported. Thus energy could now be shipped over the oceans via LNG the same way it

637-862: A local gas source or access to pipelines. China has been a leader in the use of LNG vehicles with over 100,000 LNG-powered vehicles on the road as of Sept 2014. In the United States the beginnings of a public LNG fueling capability are being put in place. An alternative fuelling centre tracking site shows 84 public truck LNG fuel centres as of Dec 2016. It is possible for large trucks to make cross country trips such as Los Angeles to Boston and refuel at public refuelling stations every 500 miles. The 2013 National Trucker's Directory lists approximately 7,000 truckstops, thus approximately 1% of US truckstops have LNG available. While as of December 2014 LNG fuel and NGV's were not taken to very quickly within Europe and it

728-538: A management-led leveraged buyout totaling approximately $ 22 billion. Outside participants in the transaction include Fayez Sarofim , Goldman Sachs Capital Partners and Highstar Capital (then owned by AIG ). KMI began trading again on the NYSE on February 11, 2011, following the largest private-equity backed IPO offering in US history. In October 2011, Kinder Morgan Inc. agreed to buy El Paso Corp. for $ 21.1 billion and gave

819-436: A moment's notice through regasification processes, and today are the main means for networks to handle local peak shaving requirements. The heating value depends on the source of gas that is used and the process that is used to liquefy the gas. The range of heating value can span ±10 to 15 percent. A typical value of the higher heating value of LNG is approximately 50 MJ/kg or 21,500 BTU/lb. A typical value of

910-527: A process for large-scale liquefaction of natural gas. The intention was to store natural gas as a liquid so it could be used for shaving peak energy loads during cold snaps. Because of large volumes it is not practical to store natural gas, as a gas, near atmospheric pressure. However, when liquefied, it can be stored in a volume 1/600th as large. This is a practical way to store it but the gas must be kept at −260 °F (−162 °C). There are two processes for liquefying natural gas in large quantities. The first

1001-434: A proven contractor is extremely important for both investors and buyers. Gas reserves required: 1 tcf of gas required per Mtpa of LNG over 20 years. LNG is most cost efficiently produced in relatively large facilities due to economies of scale , at sites with marine access allowing regular large bulk shipments direct to market. This requires a secure gas supply of sufficient capacity. Ideally, facilities are located close to

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1092-503: A receiving terminal costs $ 1 billion per 1 bcf/day throughput capacity and LNG vessels cost $ 200 million–$ 300 million. In the early 2000s, prices for constructing LNG plants, receiving terminals and vessels fell as new technologies emerged and more players invested in liquefaction and regasification. This tended to make LNG more competitive as a means of energy distribution, but increasing material costs and demand for construction contractors have put upward pressure on prices in

1183-553: A recent boom in U.S. natural gas production (2010–2014), enabled by hydraulic fracturing ("fracking"), has many of these import facilities being considered as export facilities. The first U.S. LNG export was completed in early 2016. By 2023, the U.S. had become the biggest exporter in the world, and projects already under construction or permitted would double its export capacities by 2027. The largest exporters were Cheniere Energy Inc., Freeport LNG , and Venture Global LNG Inc. The U.S. Energy Information Administration reported that

1274-565: A reverse merger with KN Energy, a utility and pipeline company. Natural Gas Pipeline Company of America (NGPL), which serves the Chicago market, was acquired through this deal. KN Energy became Kinder Morgan's second publicly traded company, Kinder Morgan, Inc. (KMI). In 2001, Kinder Morgan's third publicly traded company, Kinder Morgan Management, LLC (KMR) was formed to facilitate institutional ownership of KMP equity. On August 28, 2006, Kinder Morgan announced that it would be taken private in

1365-435: A shortage of skilled labor, professional engineers, designers, managers and other white-collar professionals. Due to natural gas shortage concerns in the northeastern U.S. and surplus natural gas in the rest of the country, many new LNG import and export terminals are being contemplated in the United States. Concerns about the safety of such facilities create controversy in some regions where they are proposed. One such location

1456-815: A surface-ship repair company in Norfolk, Virginia , and renamed it NASSCO-Norfolk. The company had been conducting ship repairs and conversions for the U.S. Navy since 1972. NASSCO-Norfolk has two locations in Norfolk and Portsmouth VA. The NASSCO-Norfolk shipyard had the newest dry dock in the country, with two auto-start generators , automated ballast control system and automated ship hauling and centering system. In December of 2014, NASSCO established NASSCO-Bremerton in Washington and NASSCO-Mayport in Florida, in support of expanding NASSCO's Repair capabilities across

1547-639: A turbocharger to enhance the air–fuel energy density. National Steel and Shipbuilding Company National Steel and Shipbuilding Company , commonly referred to as NASSCO , is an American shipbuilding company with four shipyards located in San Diego , Norfolk , Bremerton , and Mayport . It is a division of General Dynamics . NASSCO owns a subsidiary manufacturing facility with TIMSA in Mexicali, Mexico. The San Diego shipyard specializes in constructing commercial cargo ships and auxiliary vessels for

1638-430: A turbocharger), then it can produce more power than a larger one burning a less energy-dense air–fuel mixture. For high-power, high-torque engines, a fuel that creates a more energy-dense air–fuel mixture is preferred, because a smaller and simpler engine can produce the same power. With conventional gasoline and diesel engines the energy density of the air–fuel mixture is limited because the liquid fuels do not mix well in

1729-417: A vacuum system in between to reduce the amount of heat transfer. Once on site, the LNG must be stored in vacuum insulated or flat bottom storage tanks . When ready for distribution, the LNG enters a regasification facility where it is pumped into a vaporizer and heated back into gaseous form. The gas then enters the gas pipeline distribution system and is delivered to the end-user. The natural gas fed into

1820-514: Is at significant risk of becoming stranded, as global gas risks becoming oversupplied, particularly if the United States and Canada play a larger role. The current surge in unconventional oil and gas in the U.S. has resulted in lower gas prices in the U.S. This has led to discussions in Asia' oil linked gas markets to import gas based on Henry Hub index. Recent high level conference in Vancouver,

1911-532: Is confirmed, the buyer is obliged to take and pay for the product, or pay for it even if not taken, in what is referred to as the obligation of take-or-pay contract (TOP). In the mid-1990s, LNG was a buyer's market. At the request of buyers, the SPAs began to adopt some flexibilities on volume and price. The buyers had more upward and downward flexibilities in TOP, and short-term SPAs less than 16 years came into effect. At

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2002-530: Is cooled to temperatures at which it liquefies. This process was developed by James Joule and William Thomson and is known as the Joule–Thomson effect . Lee Twomey used the cascade process for his patents. The East Ohio Gas Company built a full-scale commercial LNG plant in Cleveland, Ohio, in 1940 just after a successful pilot plant built by its sister company, Hope Natural Gas Company of West Virginia. This

2093-483: Is in Qatar, with a total production capacity of 7.8 million tonnes per annum (MTPA). LNG is loaded onto ships and delivered to a regasification terminal, where the LNG is allowed to expand and reconvert into gas. Regasification terminals are usually connected to a storage and pipeline distribution network to distribute natural gas to local distribution companies (LDCs) or independent power plants (IPPs). Information for

2184-653: Is in the Long Island Sound between Connecticut and Long Island. Broadwater Energy , an effort of TransCanada Corp. and Shell, wishes to build an LNG import terminal in the sound on the New York side. Local politicians including the Suffolk County Executive raised questions about the terminal. In 2005, New York Senators Chuck Schumer and Hillary Clinton also announced their opposition to the project. Several import terminal proposals along

2275-415: Is only 60 percent that of diesel and 70 percent that of gasoline . Experiments on the properties of gases started early in the 17th century. By the middle of the seventeenth century Robert Boyle had derived the inverse relationship between the pressure and the volume of gases. About the same time, Guillaume Amontons started looking into temperature effects on gas. Various gas experiments continued for

2366-430: Is shipped around the world in specially constructed seagoing vessels . The trade of LNG is completed by signing an SPA (sale and purchase agreement) between a supplier and receiving terminal, and by signing a GSA (gas sale agreement) between a receiving terminal and end-users. Most of the contract terms used to be DES or ex ship , holding the seller responsible for the transport of the gas. With low shipbuilding costs, and

2457-637: Is the cascade process, in which the natural gas is cooled by another gas which in turn has been cooled by still another gas, hence named the "cascade" process. There are usually two cascade cycles before the liquid natural gas cycle. The other method is the Linde process , with a variation of the Linde process, called the Claude process, being sometimes used. In this process, the gas is cooled regeneratively by continually passing and expanding it through an orifice until it

2548-704: Is the largest natural gas pipeline operator in the United States, moving about 40 percent of the natural gas consumed in the country. The company previously had built a major presence in Canada with the Trans Mountain pipeline , but that infrastructure is now publicly owned and operated. The company's CO 2 division traditionally provides carbon dioxide (CO 2 ) for enhanced oil recovery projects in North America, but also increasingly for carbon sequestration efforts. Kinder Morgan Energy Partners (KMP)

2639-885: Is then condensed into a liquid at close to atmospheric pressure by cooling it to approximately −162 °C (−260 °F); maximum transport pressure is set at around 25 kPa (4 psi) ( gauge pressure ), which is about 1.25 times atmospheric pressure at sea level. The gas extracted from underground hydrocarbon deposits contains a varying mix of hydrocarbon components, which usually includes mostly methane (CH 4 ), along with ethane (C 2 H 6 ), propane (C 3 H 8 ) and butane (C 4 H 10 ). Other gases also occur in natural gas, notably CO 2 . These gases have wide-ranging boiling points and also different heating values, allowing different routes to commercialization and also different uses. The "acidic" elements such as hydrogen sulphide (H 2 S) and carbon dioxide (CO 2 ), together with oil, mud, water, and mercury, are removed from

2730-446: Is to simplify transport of natural gas from the source to a destination. On the large scale, this is done when the source and the destination are across an ocean from each other. It can also be used when adequate pipeline capacity is not available. For large-scale transport uses, the LNG is typically regassified at the receiving end and pushed into the local natural gas pipeline infrastructure. LNG can also be used to meet peak demand when

2821-584: The Lewis and Clark -class dry cargo ships (T-AKE), a 14-ship program with a contract value of $ 3.7 billion. The company has a contract to build at least three Mobile Landing Platform ships, a new class of ship for the U.S. Navy. Construction on the first vessel began in July 2011 and the keel was laid for the second in December 2012. In 2016, Matson, Inc ordered two Kanaloa-class freighters , to be delivered near

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2912-471: The San Diego Padres . National Iron Works came with a shipyard, which expanded significantly during World War II. In 1944 National Iron Works moved to its present location at 28th Street and Harbor Drive on San Diego Bay and in 1949 the company was renamed National Steel and Shipbuilding Co. to reflect the shipyard. National Iron Works built some important San Diego structures, such as some of

3003-692: The Trans Mountain oil pipeline which links Alberta with Vancouver , British Columbia , as well as the Cochin pipeline between Western Canada and the American Midwest . In 2013, Kinder Morgan filed its application to the Canadian National Energy Board (NEB) for building a second pipeline roughly parallel to the existing Trans Mountain, for transporting diluted bitumen between Edmonton , Alberta , and Burnaby , British Columbia . The new pipeline would nearly triple

3094-414: The U.S. Department of Transportation cited Kinder Morgan for violations including the company's failure to have and follow written startup and shutdown procedures, and failing to have or use other measures to detect abnormal operating conditions, and proposed a fine of $ 425,000. The 2013 Wall Street Journal article "Is Kinder Morgan Scrimping on its Pipelines?" noted that one investment analyst claimed

3185-598: The US Navy and Military Sealift Command ; it is the only new-construction shipyard on the West Coast of the United States . NASSCO performs ship repairs and conversions for the United States Navy in all four shipyard locations: San Diego, Norfolk, Bremerton, and Mayport. The origin of NASSCO traces to 1905 and a small machine shop and foundry known as California Iron Works. In 1922 California Iron Works

3276-479: The lower heating value of LNG is 45 MJ/kg or 19,350 BTU/lb. For the purpose of comparison of different fuels, the heating value may be expressed in terms of energy per volume, which is known as the energy density expressed in MJ/litre. The density of LNG is roughly 0.41 kg/litre to 0.5 kg/litre, depending on temperature, pressure, and composition, compared to water at 1.0 kg/litre. Using

3367-557: The 412-mile (663 km) NED pipeline, citing economic difficulties and lack of distribution commitments for the gas. Likewise, Kinder Morgan's proposed Palmetto Pipeline, designed to go from the Gulf Coast to the Southeast markets, was nixed. Its path would have taken it through 201 miles (323 km) of eastern and coastal Georgia , and drew opposition from local residents and environmental groups. The company suspended work on

3458-494: The Japanese yen and Korean won. Since 2004, the large number of orders increased demand for shipyard slots, raising their price and increasing ship costs. The per-ton construction cost of an LNG liquefaction plant fell steadily from the 1970s through the 1990s. The cost reduced by approximately 35 percent. However, recently the cost of building liquefaction and regasification terminals doubled due to increased cost of materials and

3549-468: The LNG plant will be treated to remove water, hydrogen sulfide , carbon dioxide , benzene and other components that will freeze under the low temperatures needed for storage or be destructive to the liquefaction facility. LNG typically contains more than 90%  methane . It also contains small amounts of ethane , propane , butane , some heavier alkanes , and nitrogen. The purification process can be designed to give almost 100%  methane . One of

3640-660: The Otis State Forest and using water from Spectacle Pond. The company invoked the U.S. Natural Gas Act to have the needed land condemned so they could seize it by eminent domain. However, the Commonwealth of Massachusetts challenged Kinder Morgan in court, arguing that the state constitution 's Article 97, which protects designated conservation land, forbids construction of a pipeline through protected lands. In late summer 2019, Kinder Morgan, EagleClaw Midstream and Altus Midstream Processing launched construction on

3731-845: The Pacific Energy Summit 2013 Pacific Energy Summit 2013 convened policy makers and experts from Asia and the U.S. to discuss LNG trade relations between these regions. Receiving terminals exist in about 40 countries, including Belgium, Chile, China, the Dominican Republic, France, Greece, India, Italy, Japan, Korea, Poland, Spain, Taiwan, the UK, the US, among others. Plans exist for Bahrain, Germany, Ghana, Morocco, Philippines, Vietnam and others to also construct new receiving ( regasification ) terminals. Base load (large-scale, >1 MTPA) LNG projects require natural gas reserves, buyers and financing. Using proven technology and

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3822-824: The Permian Highway Pipeline, a 430-mile pipeline that will carry up to 2.1 billion cubic feet of natural gas from the Waha Hub in Pecos County , Texas , to the Gulf Coast. The pipeline would create 2,500 construction jobs and 18 permanent jobs, raise $ 42 million in additional yearly tax revenues for state and local authorities, and was planned to enter operation in 2021. In 2009, the Pipeline and Hazardous Materials Safety Administration (PHMSA) cited Kinder Morgan for violating safety standards regarding

3913-421: The U.S. from 2003 to 2016, Kinder Morgan and its subsidiaries' pipelines (of all kinds) were responsible for more than 400 incidents in 24 states, incurring more than 110 federal enforcement actions. Kinder Morgan's natural gas transmission pipeline accidents caused $ 224 million in property damage. In July 2007, a Kinder Morgan pipeline got ripped open by an excavator, spilling more than 250,000 liters of oil into

4004-454: The U.S. had exported 4.3 trillion cubic feet in 2023. The process begins with the pre-treatment of a feedstock of natural gas entering the system to remove impurities such as H 2 S , CO 2 , H 2 O, mercury and higher-chained hydrocarbons . Feedstock gas then enters the liquefaction unit where it is cooled to between -145 °C and -163 °C. Although the type or number of heating cycles and/or refrigerants used may vary based on

4095-561: The US oil tanker operator American Petroleum Tankers and its affiliated company SCT (State Class Tankers) from the US private equity investment firms Blackstone Group and Cerberus Capital Management . APT operates a fleet of five US-flagged MR 50,000 tons—330,000 barrels—oil tankers and has four other similar tankers on order from the General Dynamics shipbuilding company NASSCO in California . This acquisition appears to be

4186-406: The buyers preferring to ensure reliable and stable supply, however, contracts with FOB terms increased. Under such terms the buyer, who often owns a vessel or signs a long-term charter agreement with independent carriers, is responsible for the transport. LNG purchasing agreements used to be for a long term with relatively little flexibility both in price and volume. If the annual contract quantity

4277-529: The coast of Maine were also met with high levels of resistance and questions. On September 13, 2013, the U.S. Department of Energy approved Dominion Cove Point 's application to export up to 770 million cubic feet per day of LNG to countries that do not have a free trade agreement with the U.S. In May 2014, the FERC concluded its environmental assessment of the Cove Point LNG project, which found that

4368-492: The combined company 67,000 miles (108,000 km) of gas lines, eclipsing Enterprise Products Partners LP as the biggest US pipeline operator. The transaction was paid for with shares of Kinder Morgan, Kinder Morgan warrants, and a cash portion of $ 11.5 billion through Barclays borrowing. On August 10, 2014, Kinder announced it was moving to full ownership of its partially owned subsidiaries Kinder Morgan Energy Partners , Kinder Morgan Management, and El Paso Pipeline Partners in

4459-415: The company from Morrison-Knudsen via an employee stock ownership plan . In 1940 the company's ironworkers organized into a union . By 1979 the company had 7,900 employees organized into six unions. There was a labor strike in 1988 in which employees demanded a minimum wage of $ 12 per hour. A 25-day strike in 1992 resulted in workers returning to work without a contract. In 1996, a further strike hit

4550-569: The company was deferring maintenance spending in order to return more cash to its investors. PHMSA's incident reports for Kinder Morgan's onshore gas transmission pipelines show that faulty infrastructure causes 45% of the significant leaks. Failure of the pipe, cracked welds, and faulty pipeline equipment together account for 28% of pipeline leaks, and corrosion of the pipe causes 17%. In Texas from 2003 to 2016, Kinder Morgan experienced at least 48 "significant incidents" resulting in fatalities or hospitalization, fires, explosions, or spills. Throughout

4641-418: The company. Around 2,700 employees stayed home while 50 marched in front of the company with picket signs. In 1991, NASSCO established the subsidiary manufacturing facility of Tecnologias Internacionales de Manufactura, S.A. de C.V. (TIMSA) located in Mexicali, Mexico. In 1998 General Dynamics bought NASSCO in a $ 415 million deal. On October 31, 2011, General Dynamics-NASSCO acquired Metro Machine Corp,

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4732-411: The cylinder. Further, gasoline and diesel fuel have autoignition temperatures and pressures relevant to engine design. An important part of engine design is the interactions of cylinders, compression ratios, and fuel injectors such that pre-ignition is prevented but at the same time as much fuel as possible can be injected, become well mixed, and still have time to complete the combustion process during

4823-429: The distance between a natural gas pipeline and a "high consequence area" such as a school or hospital; the pipeline was too close for safe operation in case of a leak. In 2011, PHMSA cited Kinder Morgan for failing to maintain update maps showing pipeline locations, test pipeline safety devices, maintain firefighting equipment, inspect its pipelines as required, and adequately monitor pipes’ corrosion levels. Also in 2011,

4914-646: The downstream buyers and then sign long-term contracts (typically 20–25 years) with strict terms and structures for gas pricing. Only when the customers are confirmed and the development of a greenfield project deemed economically feasible, could the sponsors of an LNG project invest in their development and operation. Thus, the LNG liquefaction business has been limited to players with strong financial and political resources. Major international oil companies (IOCs) such as ExxonMobil , Royal Dutch Shell , BP , Chevron , TotalEnergies and national oil companies (NOCs) such as Pertamina and Petronas are active players. LNG

5005-420: The economic screening/ justification to develop new, and especially greenfield, LNG facilities challenging, even if these could be more environmentally friendly than existing facilities with all stakeholder concerns satisfied. Due to high financial risk, it is usual to contractually secure gas supply/ concessions and gas sales for extended periods before proceeding to an investment decision. The primary use of LNG

5096-624: The extra gas Kinder Morgan sold went to electric utility companies whose usual non-Kinder suppliers had shut down or blacked out as the catastrophe intensified. Possible long-term ramifications of the storm may be that utilities pay more to guarantee uninterrupted gas deliveries from Kinder Morgan instead. El Paso Corporation was purchased in 2012 with subsidiaries: Kinder Morgan owns or operates approximately 83,000 miles (134,000 km) of pipelines transporting primarily natural gas , crude oil , and petroleum products. In Canada, Kinder Morgan operated (before being bought out by Canada 's government)

5187-712: The first case whereby a pipeline operator will also be able to offer marine transportation. This acquisition would facilitate the export of US natural resources to overseas markets, and Kinder Morgan had lined up several LNG export customers by July 2014. During the 2021 Texas power crisis , Kinder Morgan posted a nearly $ 1 billion one-time net profit after the company voluntarily cut back on its own power (saving $ 116 million) and sold natural gas to electric utility companies at high prevailing prices (gaining $ 880 million). An analyst at Mizuho Securities said Kinder Morgan "was not really on anyone’s list of potential winners from Winter Storm Uri . Shame on us [for not seeing it]." Most of

5278-443: The following table is derived in part from publication by the U.S. Energy Information Administration. See also List of LNG terminals The LNG industry developed slowly during the second half of the last century because most LNG plants are located in remote areas not served by pipelines, and because of the high costs of treating and transporting LNG. Constructing an LNG plant costs at least $ 1.5 billion per 1 MTPA capacity,

5369-478: The four metros due to LNG prices decreasing. Japan, the world's largest importer of LNG, is set to begin use of LNG as a road transport fuel. Engine displacement is an important factor in the power of an internal combustion engine . Thus a 2.0 L engine would typically be more powerful than an 1.8 L engine, but that assumes a similar air–fuel mixture is used. However, if a smaller engine uses an air–fuel mixture with higher energy density (such as via

5460-474: The fuel tanks and delivery of gas to the engine, but despite these concerns the move to LNG as a transportation fuel has begun. LNG competes directly with compressed natural gas as a fuel for natural gas vehicles since the engine is identical. There may be applications where LNG trucks, buses, trains and boats could be cost-effective in order to regularly distribute LNG energy together with general freight and/or passengers to smaller, isolated communities without

5551-476: The gas source, to minimize the cost of intermediate transport infrastructure and gas shrinkage (fuel loss in transport). The high cost of building large LNG facilities makes the progressive development of gas sources to maximize facility utilization essential, and the life extension of existing, financially depreciated LNG facilities cost effective. Particularly when combined with lower sale prices due to large installed capacity and rising construction costs, this makes

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5642-480: The gas to deliver a clean sweetened stream of gas. Failure to remove much or all of such acidic molecules, mercury, and other impurities could result in damage to the equipment. Corrosion of steel pipes and amalgamization of mercury to aluminum within cryogenic heat exchangers could cause expensive damage. The gas stream is typically separated into the liquefied petroleum fractions (butane and propane), which can be stored in liquid form at relatively low pressure, and

5733-573: The largest LNG-powered ships of any kind in the world. Beginning in the 1990s the company won Navy contracts to build AOE-10 support ships, strategic sealift ships, and TOTE Orca-class trailerships. Additional Navy contracts awarded during the 2000s included maintenance of the San Diego–based USS Ticonderoga (CG-47) and USS Spruance (DD-963) warships. In 2001 the Navy awarded NASSCO its largest order in company history, to build

5824-468: The last few years. The standard price for a 125,000 cubic meter LNG vessel built in European and Japanese shipyards used to be US$ 250 million. When Korean and Chinese shipyards entered the race, increased competition reduced profit margins and improved efficiency—reducing costs by 60 percent. Costs in US dollars also declined due to the devaluation of the currencies of the world's largest shipbuilders:

5915-430: The lighter ethane and methane fractions. These lighter fractions of methane and ethane are then liquefied to make up the bulk of LNG that is shipped. Natural gas was considered during the 20th century to be economically unimportant wherever gas-producing oil or gas fields were distant from gas pipelines or located in offshore locations where pipelines were not viable. In the past this usually meant that natural gas produced

6006-428: The median value of 0.45 kg/litre, the typical energy density values are 22.5 MJ/litre (based on higher heating value) or 20.3 MJ/litre (based on lower heating value). The volumetric energy density of LNG is approximately 2.4 times that of compressed natural gas (CNG), which makes it economical to transport natural gas by ship in the form of LNG. The energy density of LNG is comparable to propane and ethanol but

6097-623: The nation. NASSCO began building commercial cargo ships in 1959, eventually including large cargo ships and Alaska -class oil tankers . Its most famous commercial ship was the Exxon Valdez tanker, which completed construction at NASSCO in 1986, and in 1989 returned to NASSCO for repairs after its accident and oil spill in Alaska. In December 2012 the company signed a contract to build two 764-foot (233 m) container ships powered by liquefied natural gas (LNG). When completed they will be

6188-572: The next 15 years new research on low-temperature alloys, and better insulation materials, set the stage for a revival of the industry. It restarted in 1959 when a U.S. World War II Liberty ship , the Methane Pioneer , converted to carry LNG, made a delivery of LNG from the U.S. Gulf Coast to energy-starved Great Britain. In June 1964, the world's first purpose-built LNG carrier, the Methane Princess , entered service. Soon after that

6279-532: The next 200 years. During that time there were efforts to liquefy gases. Many new facts about the nature of gases were discovered. For example, early in the nineteenth century Cagniard de la Tour showed there was a temperature above which a gas could not be liquefied. There was a major push in the mid to late nineteenth century to liquefy all gases. A number of scientists including Michael Faraday , James Joule , and William Thomson (Lord Kelvin) did experiments in this area. In 1886 Karol Olszewski liquefied methane,

6370-530: The normal pipeline infrastructure can meet most demand needs, but not the peak demand needs. These plants are typically called LNG Peak Shaving Plants as the purpose is to shave off part of the peak demand from what is required out of the supply pipeline. LNG can be used to fuel internal combustion engines. LNG is in the early stages of becoming a mainstream fuel for transportation needs. It is being evaluated and tested for over-the-road trucking, off-road, marine, and train applications. There are known problems with

6461-671: The plants in which Convair manufactured aircraft for World War II . In this way, Smith came to have an interest in real estate and hotels. After the war, the shipyard made some of the first steel-hulled deep-sea purse seiner tuna boats, through which Smith consolidated local tuna businesses, controlling both ships and the canneries. These business were grouped into Smith's later holding company, Westgate-California Corporation . However, in 1959 Smith sold National Steel and Shipbuilding to four other corporations, including Kaiser Industries and Morrison-Knudsen . In 1979 Morrison-Knudsen bought out Kaiser's share, and in 1989 management acquired

6552-425: The power stroke. Natural gas does not auto-ignite at pressures and temperatures relevant to conventional gasoline and diesel engine design, so it allows more flexibility in design. Methane, the main component of natural gas, has an autoignition temperature of 580 °C (1,076 °F), whereas gasoline and diesel autoignite at approximately 250 °C (482 °F) and 210 °C (410 °F) respectively. With

6643-477: The primary constituent of natural gas. By 1900 all gases had been liquefied except helium , which was liquefied in 1908. The first large-scale liquefaction of natural gas in the U.S. was in 1918 when the U.S. government liquefied natural gas as a way to extract helium, which is a small component of some natural gas. This helium was intended for use in British dirigibles for World War I. The liquid natural gas (LNG)

6734-516: The project after the Georgia General Assembly passed a temporary moratorium on the use of eminent domain for pipeline construction, and commissioned a study to review the project. The company filed an appeal. Kinder Morgan proposed a 13 miles (21 km) long 36-inch (914 mm) diameter high-pressure natural gas storage loop which would include a 4 miles (6.4 km) pipeline spur through Sandisfield, Massachusetts , crossing

6825-452: The proposed natural gas export project could be built and operated safely. Another LNG terminal is currently proposed for Elba Island , Georgia, US. Plans for three LNG export terminals in the U.S. Gulf Coast region have also received conditional Federal approval. In Canada, an LNG export terminal is under construction near Guysborough , Nova Scotia. In the commercial development of an LNG value chain, LNG suppliers first confirm sales to

6916-480: The risks of LNG is a rapid phase transition explosion (RPT), which occurs when cold LNG comes into contact with water . The most important infrastructure needed for LNG production and transportation is an LNG plant consisting of one or more LNG trains, each of which is an independent unit for gas liquefaction and purification. A typical train consists of a compression area, propane condenser area, and methane and ethane areas. The largest LNG train in operation

7007-458: The same time, alternative destinations for cargo and arbitrage were also allowed. By the turn of the 21st century, the market was again in favor of sellers. However, sellers have become more sophisticated and are now proposing sharing of arbitrage opportunities and moving away from S-curve pricing. Research from Global Energy Monitor in 2019 warned that up to US$ 1.3 trillion in new LNG export and import infrastructure currently under development

7098-685: The spring of 2018. The Liberal Party of Canada controlled Canadian government then purchased TransMountain from Kinder Morgan for C$ 4.5 billion to make it a government-run public works project in an effort to save the pipeline from environmental and political opposition. This high-pressure 30-inch (762 mm) gas transmission pipeline, proposed in 2014, was slated to pass from Wright , New York to Dracut , Massachusetts , to help alleviate New England ’s high natural gas and electricity costs caused, in their estimation, by severely limited natural gas transportation capacity currently serving that region. But in 2016, Kinder Morgan suspended its effort to build

7189-654: The technology, the basic process involves circulating the gas through aluminum tube coils and exposure to a compressed refrigerant. As the refrigerant is vaporized, the heat transfer causes the gas in the coils to cool. The LNG is then stored in a specialized double-walled insulated tank at atmospheric pressure ready to be transported to its final destination. Most domestic LNG is transported by land via truck/trailer designed for cryogenic temperatures. Intercontinental LNG transport travels by special tanker ships. LNG transport tanks comprise an internal steel or aluminum compartment and an external carbon or steel compartment with

7280-533: The tools required to commercialize natural gas into a global market which now competes with other fuels. Furthermore, the development of LNG storage also introduced a reliability in networks which was previously thought impossible. Given that storage of other fuels is relatively easily secured using simple tanks, a supply for several months could be kept in storage. With the advent of large-scale cryogenic storage, it became possible to create long term gas storage reserves. These reserves of liquefied gas could be deployed at

7371-423: The transportation capacity from 300,000 to 850,000 barrels per day, for an estimated investment of $ 6.8 billion. This expansion would enable the export of larger volumes of Alberta's bituminous sands oil to the U.S. and to Asian countries. The expansion project had support from the energy industry but opposition from First Nations among environmentalists and others. Protests started in 2014 and were continuing in

7462-458: The volume of natural gas in the gaseous state at standard conditions for temperature and pressure . LNG is odorless , colorless , non-toxic and non-corrosive . Hazards include flammability after vaporization into a gaseous state, freezing and asphyxia . The liquefaction process involves removal of certain components, such as dust, acid gases , helium , water, and heavy hydrocarbons , which could cause difficulty downstream. The natural gas

7553-539: The year 2015, India also began transporting LNG using LNG-powered road tankers in Kerala state. In 2017, Petronet LNG began setting up 20 LNG stations on highways along the Indian west coast that connect Delhi with Thiruvananthapuram covering a total distance of 4,500 km via Mumbai and Bengaluru. In 2020, India planned to install 24 LNG fuelling stations along the 6,000 km Golden Quadrilateral highways connecting

7644-529: Was founded in 1997 when a group of investors acquired the general partner of a small, publicly traded pipeline limited partnership (Enron Liquids Pipeline, L.P.) later renamed Kinder Morgan Energy Partners, L.P. Its cofounder Rich Kinder had been the president of Enron . After Kinder was denied an expected promotion to replace Kenneth Lay as chief executive officer, he departed the company, purchasing its interest in ELP for $ 40 million. In 1999, Kinder Morgan conducted

7735-442: Was not stored, but regasified and immediately put into the gas mains. The key patents having to do with natural gas liquefaction date from 1915 and the mid-1930s. In 1915 Godfrey Cabot patented a method for storing liquid gases at very low temperatures. It consisted of a Thermos bottle -type design which included a cold inner tank within an outer tank; the tanks being separated by insulation. In 1937 Lee Twomey received patents for

7826-549: Was questionable whether LNG will ever become the fuel of choice among fleet operators, recent trends from 2018 onwards show different prospect. During the year 2015, the Netherlands introduced LNG-powered trucks in transport sector. Additionally, the Australian government is planning to develop an LNG highway to utilise the locally produced LNG and replace the imported diesel fuel used by interstate haulage vehicles. In

7917-481: Was regasified and put into the mains when cold snaps hit and extra capacity was needed. This precluded the denial of gas to some customers during a cold snap. The Cleveland plant failed on October 20, 1944, when the cylindrical tank ruptured, spilling thousands of gallons of LNG over the plant and nearby neighborhood. The gas evaporated and caught fire, which caused 130 fatalities. The fire delayed further implementation of LNG facilities for several years. However, over

8008-491: Was shipped in the form of oil. The LNG industry in the U.S. restarted in 1965 with the building of a number of new plants, which continued through the 1970s. These plants were not only used for peak-shaving, as in Cleveland, but also for base-load supplies for places that never had natural gas before this. A number of import facilities were built on the East Coast in anticipation of the need to import energy via LNG. However,

8099-578: Was taken over by United States National Bank of San Diego (USNB) and renamed National Iron Works. In 1933, USNB was bought by C. Arnholt Smith who thereby also took control of National Iron Works, which formed the first foundation of Smith's non-banking business activities in San Diego. USNB and National Iron Works were key elements in Smith's rise to becoming a San Diego business and political powerbroker in subsequent decades, including being first owner of

8190-400: Was the first such plant in the world. Originally it had three spheres, approximately 63 feet in diameter containing LNG at −260 °F. Each sphere held the equivalent of about 50 million cubic feet of natural gas. A fourth tank, a cylinder, was added in 1942. It had an equivalent capacity of 100 million cubic feet of gas. The plant operated successfully for three years. The stored gas

8281-424: Was typically flared , especially since unlike oil, no viable method for natural gas storage or transport existed other than compressed gas pipelines to end users of the same gas. This meant that natural gas markets were historically entirely local, and any production had to be consumed within the local or regional network. Developments of production processes, cryogenic storage, and transportation effectively created

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