E- Fuel Supply & Fuel Switching Purchasing NG

8/8/2019 E- Fuel Supply & Fuel Switching Purchasing NG

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Fuel Supply & Fuel SwitchingPurchasing Natural Gas

AEE/ Certified Energy Manager CEMAEE/ Certified Energy Manager CEM

EE -- 11


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Fuel Types

Fuel Types

Natural Gas

#2 Fuel Oil #6 Fuel Oil

Coal

Propane

Etc.

HIGHER HEATING VALUE VS. LOWER HEATING VALUE HHV

LHV

AEE/ Certified Energy Manager CEMAEE/ Certified Energy Manager CEM

EE -- 22


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Energy Sources

AEE/ Certified Energy Manager CEMAEE/ Certified Energy Manager CEM EE -- 33

Natural Gas1. Major source of thermal energy

2. Good efficiency3. Clean burning

Electricity1. Very clean to use

2. Normally very efficient source3. More expensive than gas (normally)


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Energy Sources (cont.)


Fuel # 21. Light distillate fuel oil

2. Relatively price stable & storable

3. Good standby fuel source

4. Good primary when gas not available and/or expensive

Fuel # 61. Viscous & hard to handle

2. Relatively inexpensive & storable

3. Limited usage but may grow


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Energy Sources (cont.)


LPG1. Gas, when burned, similar to NG.

2. Storable, so potential as a stand by3. Limited usage in industry


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FUEL SUPPLY AND FUEL SWITCHING

Comparison of fuel costsPurchase price

Efficiency

Other considerationscontingency planning

stand by fuels

Curtailments

Env. Impacts

RULES & REGSHealth & Safety

Law # 4 for 1994

EIA



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ENERGY CONVERSION FACTORS

In order to communicate energy engineering goals and to

analyse the literature in the field it is important to understand the

conversion factors used in energy engineering and how they are

applied.

Each fuel has a heating value, expressed in terms of Joules (J)

Table I - I illustrates heating values of various fuels. To compare

efficiencies of various fuels, it is best to convert fuel usage in

terms of Joules. Tables 1-2a; I -2b illustrate conversions and

prefixes used in energy engineering calculations.

The chemical energy stored in fuel is sometimes expressed as

Higher Heating Value (HHV) or Lower Heating Value (LHV).



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All fuels contain energy, to harness this energy the fuelmust undergo a chemical reaction

Heating value of a fuel ( Calorific Value ) is the measure of

the amount of heat liberated during combustion

Heating value depends on the fuel specific chemicalcomposition

Heating values are measured in kJ/kg (Btu/Ib) for liquid

fuels and in kJ/m3 (Btu/ft3 ) for gaseous fuels, where

reference conditions ( P, T ) should be stated.


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Combustion of Methane Example

CH4 + 2 O2 CO2 + 2 H2O

During combustion Oxygen combines with carbon, forming CO2 and withhydrogen forming H2O, CO2 is at gaseous state at ambient temperature andpressure, while H2O may leave the combustion device in a vapor formtaking the Heat of Vaporization out.

LHV = HHV heat of vaporization of H2O

16 kg (CH4 )+ 64 kg (O2) = 44 kg (CO2 ) + 36 kg (H2O)

1 Kg (CH4 )+ 4 kg (O2) = 2.74 kg (CO2 ) + 2.25 kg (H2O)

Density of Methane 0.679 kg / m3,

0.679 kg/m3 (CH4 ) 1.525 kg/m3 (H2O)

LHV = 37700 (2465.3 kJ/kg) x 1.525 = 33940 kJ/m3

LHV / HHV = 0.9002

Generally for Gaseous fuels LHV / HHV = 0.90 For liquid fuels LHV / HHV = 0.94


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AEE/ Certified Energy Manager CEMAEE/ Certified Energy Manager CEM EE-- 88


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The higher heating value is obtained by burning a small sample

of fuel in an oxygen environment and recording the heattransferred to the water sample surrounding it. This test includes

the latent heat of vaporization of the condensed vapour.

The lower heating value subtracts the latent heat of vaporization

since this energy is usually unavailable in practice.

European countries usually use lower heating values for fuels

while in the United States higher heating values are used. Thus

a heating device tested in Europe will be approximately 10%

more efficient than if tested in the United States due to thestandard in heating values assumed.



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HHV vs. LHV


Combustion equation for NG

CH4 + 2 O2 CO2 + 2 H2O

Dew point } 80C, thus some heat loss

HHV is the heat developed when this chemistry

(combustion) occurs; this is about 37257 kJ/m3


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Example 1

The supply of fuel oil is projected at 11.5 million

barrels per day (1 barrel = 159L) What is the supply in

Joules per year, assuming an average fuel oil value of39,000 kJ/L?

Answer

Fuel supply= {39000 kJ/L}*{11.5x106 barrel/day}*{159

L/barrel}*{365 day/yr} = 2.603 x 1016 kJ/yr



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Example 2


The warehouse of a plant is required to be minimally heated

at night. Two methods of heating are being considered. One

method is electric heaters. The second is to operate the oil-fired boiler (using No.2 fuel oil) which keeps the radiators

warm all night. Electricity cost, excluding demand charges,

is 0.1535 LE per kilowatt hour; No 2 fuel oil costs 0.4 LE per

liter. Assume the boiler is 70% efficient and exclude the

costs of running pumps and fans to distribute heat. What isthe relative cost to heat the building using electricity or the

oil-fired boiler?


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Answer

To compare fuel costs, a common base of LE per kJ will be used.

Electricity Cost 1 kWh=3.6MJ

Cost = {1 kWh/3.6 MJ} * {0.1535 LE/kWh} = 0.0426 LE/MJ

No 2 Fuel oil cost

Heating value of no 2 fuel oil = 39,018 kJ/liter

Cost = {0.4 LE/liter} * {L/39,018 kJ} * {1/0.7} * {1000 kJ/MJ} = 0.014 LE/MJ


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FUNDAMENTAL REVIEW


For a large boiler, you have the choice of the

following energy sources. Calculate the "delivered

cost" per MJ for each.

a) Natural Gas 0.141 LE/m3 efficiency = 80%

b) #2 Fuel Oil 0.4 LE/L efficiency = 78%

c) Electricity 0.1535 LE/kWh efficiency = 99%

Discuss HHV vs. LHV and what impact condensing

technologies might have on their use.


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Fuel Distribution and Cost InEgypt



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Distribution and Sale ofNatural Gas


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Local distribution companies (LDCs) are responsible for building and operating the gas distribution network in defined geographic

areas and selling gas to local end-users


GASCO

EGPC

GASCO

Industrial

Electric Power Stations

Commercial

Residential

Industrial

Electric Power Stations

Commercial

Residential

END-USERS

City Gas (Suez, Red Sea, South Sinai)

Egypt Gas (Monofia, Gharbia,

Dakahlia, Qalubia)

Fayoum Gas (Fayoum)

National Gas (Sharkiya)

Nile Valley Gas (UpperEgypt)

Nat Gas (Beheira, Borg El-Arab, 6th

of October City, Greater Cairo)

REPCO Gas (Damietta)

TownGas (Alexandria, Greater

Cairo, Ismailia, andPort Said)

NATURAL GAS LDCs

City Gas (Suez, Red Sea, South Sinai)

Egypt Gas (Monofia, Gharbia,

Dakahlia, Qalubia)

Fayoum Gas (Fayoum)

National Gas (Sharkiya)

Nile Valley Gas (UpperEgypt)

Nat Gas (Beheira, Borg El-Arab, 6th

of October City, Greater Cairo)

REPCO Gas (Damietta)

TownGas

Cairo, Ismailia, andPort Said)

NATURAL GAS LDCs

EGAS

Build and operate concessionagreements between

EGPC/EGAS and the LDCs

Activities that help

supply gas to the grid

Transportation of gas

to LDCs anddelivery of

gas to some large end-

users that are not in an

LDCs service territory

Delivery of gas to end-users

Notes: 1) Existing concession agreements with LDCs are with EGPC. All new agreements will be with EGAS

2) Egypt and Town Gas are either whollyor partially-owned by the government


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Price of Natural Gas for Local End-Users

Current natural gas prices were established in 1998 and differ by end-usercategory as follows:

Industrial and power sector customers pay a flat rate price for gas ofEgyptian Pounds (LE) 0.141 per cubic meter (m3)

The price that commercial and residential customers pay varies accordingto their monthly consumption of gas :

0 to 30 m 3/month: LE 0.10/m3

31 to 60 m 3/month: LE 0.20/m3

>60 m 3/month: LE 0.30/m3

Commercial and residential end-users also pay added charges for meterreading and local taxes that can be as much as 10% of their stated price



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Fuel End-Use Prices Compared to NG


Price in

(LE/MBTU)

Price in

(LE/GJ)

Local PriceFuel

4.24.0( 9.4 )

0.141 LE/m3 (Ind.)(0.33 LE/m3) (Res & Com.)

Natural Gas

4.94.7185 LE/tonMazout

(fuel oil #6)

7.16.8320 LE/ton*LPG

10.910.4460 LE/tonSolar

(fuel oil #2)


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Conversion to MBTU (Example Calculation)

Key Inputs for Converting to MBTU Price of fuel (LE/m3, LE/ton, etc.)

Heating value and density of the different fuels

Natural Gas Cost in MBTU Step 1: 0.141 LE/m3 0.036 GJ/m3 = 4.0 LE/GJ

Step 2: 4.0 LE/GJ * 1.06 GJ/MBTU = 4.2 LE/MBTU

Solar Cost in MBTU Step 1: 463 LE/ton (44,633 kJ/kg * (1000/106) = 10.4 LE/GJ

10.4 LE/GJ * 1.06 GJ/MBTU = 10.9 LE/MBTU



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E- Fuel Supply & Fuel Switching Purchasing NG

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