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A New Method to Transport High Value Gases: Agility Gas Gas Transport Technology (GTT) moves higher value gases such as propane, propylene, R13, R14 and ethane as liquids by co-transporting them with LNG at or near the boiling point of LNG. Ethylene and propylene are more than 4 times as valuable as methane based on mass. The added value of ethylene and propylene derives from the useful and varied products that they can be made into, including polymers, solvents, industrial chemicals, consumer products, detergents, medications and much, much more. Like natural gas, these high value gases (HVGs) cannot be conveyed by pipeline under water. HVG manufacturing plants are generally built close to an HVG specific pipeline for distribution or near a chemical conversion plant that can immediately convert HVGs into a liquid or solid product. These HVG production plants are often located in developed countries where the cost of the source material (i.e. naphtha) is much higher than in developing countries, where most of the LNG liquification plants are or will be located. If these HVGs could be manufactured where feedstock prices are low and economically transported in a dense form to locations where HVG prices are high, there would be substantial added value for the user and savings for the producer. An Ethane Oversupply Opportunity: A complicating factor is ethylene oversupply in regions where there is excess ethane being produced, such as the USA. Ethane oversupply places global price pressure on ethyleneSurplus ethylene puts greater pressure on high cost producers. With higher manufacturing costs in East Asia and Europe, the profit from making ethylene is lower. Even so, high cost and uneconomical ethylene continues to be made because ethylene is a gas and is made locally to be used locally. The AGT advantage is manufacturing expensive ethylene in places like Europe and Southeast Asia can be curtailed as the ethylene source can be now from a distant shore where ethylene costs are significantly less. High Value/Density Cargo: With a destination value of $5/MSCF, the liquid methane on an LNG ship with a standard capacity of 138,000 cubic meters is worth $15.3 million. A cargo of 75% ethylene/25% methane by volume, having the same mass, is worth $58.4 million at destination. Customer Flexibility: LNG contracts are generally long term contracts that in bad times, such as now, can lose money for the provider. The ability to ship ethylene with the LNG allows the LNG provider to meet LNG delivery obligations while benefitting from greater profits from ethylene delivery. Doing this can turn losses into profits. The HVG/LNG co-transport can be varied to meet changing customer demands. HVG blends or pure components can be stored in dedicated tanks and only moved to ship when needed, such as during peak customer needs or when existing HVG production plants shutdown or fail, creating local shortages. |