Sunday, March 19, 2006

LIQUID NATURAL GAS (LNG) CAN BE USED AS NGV FEEDSTOCK IN MALAYSIA !!!

Malaysia currently produces 23 Million Metric Tons of LNG per year. We have three plants and all are located at Bintulu, Sarawak.

Let me share with you on some ideas that can be done to use a small portion of this non polluting alternative fuel for all Malaysian.

LNG is a short word for Liquid Natural Gas. Frankly they come from the same source of NGV (Natural Gas for Vehicles) that is our Natural Gas. LNG is a result of cooling the natural gas to -260 Degree Centigrade while NGV is a result of compressing the gas to 260 bar pressure.

Once the gas is cleaned and cooled, it will turn into Liquid Natural Gas (LNG). It looks like water, colorless and odorless. If kept in a suitable container they can be transported to any part of the world for usage.

As compared to NGV, this liquefied gas can hold eight times the volume of NGV. Yes, a container of LNG is equivalent to eight (8) containers of NGV at 260 bar pressure.

It have another interesting characteristic. Any impurities that it contained during cooling process will remain as liquid. So this would mean that the gas produced after the LNG is transformed into gas for fuel usage is far superior then a normal NGV. It will be giving a higher octane value I presume.

We have these three plants in Bintulu producing 23 million metric tons a year. We export them to Taiwan, Japan, Korea and other countries. Out of the 23 million we export only 21.2 Metric tons. We have an excess of 1.8 million tons a year.

My question is " Can some one out there buy this excess LNG and distribute the LNG as the feedstock to NGV stations?".

Will PETRONAS allow? Will our Government support the move? Will someone out there see what I see?

We can start by deploying this non polluting LNG for Sarawakian NGV project. The Government can actually start National NGV on full scale project in Sarawak. I am sure Dato Taib Mahmud will give his blessing. What else since Sarawak is collecting a 5% royalty from these same product. (Dato Taib Mahmud is the Chief Minister of Sarawak. A very capable and humble man)

Any LNG excess available can be transported to Sabah and Peninsular Malaysia.

The idea is to open LCNG (Liquid Compressed Natural Gas)stations where the feedstock is LNG.

My conclusions are as follows:

a) The Government start NGV on a national basis by implementing the 1st phase in Sarawak. Get the state to work on the best method to allow local player to invest in moving towards NGV.

b) The Company set up shall buy the excess LNG from PETRONAS-LNG and deployed to all LCNG stations in the state.

c) In the meantime we shall look at phase II, a similar sister company shall start operation in Peninsular and Sabah to do the same. They will be able to get the excess LNG from Sarawak formed company.

This idea can be materialized if the Government give a small push to the state Government and PETRONAS. There is no reason why we are not allowed to use our own natural gas for our countries benefit.

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