Slide 1. Natural gas is a fossil fuel, just like coal and oil.

It is mostly utilized as a feedstock for

energy generation. Natural gas resources are frequently discovered near oil deposits. The
volume of natural gas deposits varies. Deeper deposits, generated at higher temperatures and
under more pressure, contain more natural gas than oil.
● Conventional Natural Gas. If natural gas moved into large cracks and spaces between
layers of overlying rock.
● Unconventional Natural Gas. If natural gas occurs in the tiny pores (spaces) within
some formations of shale, sandstone, and other types of sedimentary rock.
● Associated Natural Gas. If Natural gas also occurs with deposits of crude oil

Slide 2. Millions to hundreds of millions of years ago, the remains of plants and animals (such
as diatoms) built up in thick layers on the earth’s surface and ocean floors, sometimes mixed
with sand, silt, and calcium carbonate. Over time, these layers were buried under sand, silt, and
rock. Pressure and heat changed some of this carbon and hydrogen-rich material into coal,
some into oil (petroleum), and some into natural gas.

Slide 3. The exact composition of natural gas can vary widely depending on its location. Each
well has a different gas composition and different amounts of each component. Even wells right
next to each other in the same formation can have variations to the composition, sometimes
very minute and sometimes somewhat different. Natural gas is a combustible mixture of
hydrocarbon gases. What is a hydrocarbon, you ask? A hydrocarbon is an organic compound
of hydrogen and carbon. While natural gas is formed primarily of methane, it also includes
ethane, propane, butane, pentane, and other heavier components.

Slide 4.
● Cleaner Alternative. Natural gas emits about 50% less CO₂ than coal and 30% less
than oil, making it a less carbon-intensive fossil fuel. Its lower emissions profile has
established it as a valuable "transition fuel" for countries moving away from coal and oil
as they work toward net-zero carbon goals.
● Investment in CCUS. Combining natural gas with carbon capture and storage
technology can enable near-zero-carbon power generation. As Carbon Capture,
 Utilization and Storage (CCUS) technology advances, it enhances natural gas’s potential
to provide lower-carbon energy in sectors that are harder to electrify or decarbonize.
CCUS involves the capture of CO2, generally from large point sources like power
generation or industrial facilities that use either fossil fuels or biomass as fuel. If not
being used on-site, the captured CO2 is compressed and transported by pipeline, ship,
rail or truck to be used in a range of applications, or injected into deep geological
formations such as depleted oil and gas reservoirs or saline aquifers.Net Zero Emissions
by 2050 by IEA (International Energy Agency)
● Increased Trade in LNG. NG has transformed natural gas from a regional to a global
commodity, allowing countries without local reserves or pipelines to import natural gas.
This has increased energy access in developing regions and strengthened energy
security in Europe and Asia.The appearance of new gas extraction technologies has led
to surplus production in the United States (Gulf of Mexico). At the same time, energy
consumption in Asia has increased significantly and Japan has introduced important
changes to its post-Fukushima energy policies. Taken together, these factors have
resulted in an imbalance in production and consumption between the Atlantic and Pacific
Maritime Areas. Over the same period of time, the Panama Canal expansion opened,
permitting transit by liquefied natural gas vessels for the first time. In 2023, the total
volume of natural gas consumed in the Philippines amounted to around 105.91 billion
standard cubic feet, reflecting a decrease from the previous year. Power generation
accounts for the majority of natural gas consumption in the country.

Slide 5. (Types of Pipelines).

● Gathering Pipelines. Gathering pipelines take the resources between the point of
extraction, and the relevant processing location. Gathering pipelines tend to be small in
diameter and short in length. This is because it’s important to minimize the time between
the extraction of resources, and the initial processing steps. Most of the time, the initial
gathering pipelines are less than or around 200 meters and they have a diameter of
around 18 to 20 inches. Operate at lower pressures of around 715 psi but it may vary
upon transit.
● Transportation Pipelines. (Transmission Pipelines). Transportation pipelines
traditionally handle the “long hauls.” Transportations might run between cities, but they
can stretch much farther. You’ll find transportation pipelines running between countries
and across continents. Transportation pipelines tend to be made using the largest pipes.
It has a diameter between “10-42 inches in diameter.” In addition to dealing with large
quantities of materials, these pipelines often work at high-pressure levels. PS Trust
notes that gas transport pipelines operate at between “200 – 1200 psi,” but the pressure
level will vary depending on the material being transported.
● Distribution Pipelines. The distribution pipeline is comparable to the gathering pipeline
in that it is relatively small in diameter and short compared to transportation lines. This
line is the one that delivers resources to their final industrial, commercial, and residential
destinations. It has a diameter that rangers from 2 to 24 inches and can handle up to
200 psi of pressure.
Slide 6. (Types of LNG Carrier).
● Moss-Type. This system is named after the Norwegian company which designed them
(Kvaerner Moss). The spherical cargo tank is independent from the hull, and this unique
configuration enables each tank to accommodate its internal pressure. (Better at
handling pressure(maintaining/controlling) while in transit. Compared to other types, this
type has a smaller surface area for its tanks, contributing to the suppression of boil-off
gas. During the process of LNG unloading and storage some part of LNG evaporates
into gas phase, which is usually called boil-off gas (BOG) - Loss gas during
loading/unloading
● Membrane Type. Usually made of stainless steel, or an alloy supported by insulation
layers. These ay designed specifically to reduce heat transfer and minimize boil-off.
Cargo is maintained at lower temperature to absorb the expansion of the gas thus is
effective in maintaining cryogenic temperatures.
● Self-Supporting Type. This self-supporting prismatic shape tank uses aluminum alloy or
stainless steel, with heat insulation on the exterior. This type of tank has the advantage
of allowing for broader use on deck because it is more easily fitted on the hull in
comparison with spherical cargo tanks and has no protruding structures on deck. Can
accommodate extra structures on the deck such as hangars, helicopter pads, weather
decks and other strucutures related to oil and gas transport and production.

Slide 7. (Types of Storage)

● Depleted Natural Gas/Oil Fields. The most common storage method is in depleted
natural gas or oil fields, typically close to consumption centers. By converting a field into
a storage facility, companies can take advantage of existing wells, gathering systems,
and pipeline connections. They are the most common sites because of their wide
availability.
● Aquifer Reservoir. An aquifer is suitable for gas storage if the water-bearing
sedimentary rock formation is overlaid with an impermeable cap rock. (Conditional
Storage). While the geology of aquifers is similar to depleted production fields, their use
in gas storage usually requires more base (cushion) gas and greater monitoring of
withdrawal and injection performance. Deliverability rates may be enhanced by the
presence of an active water drive.
● Salt Caverns. (Reservoir/well is located atop of a salt dome) These storage facilities
provide very high withdrawal and injection rates relative to their working gas capacity.
Base gas requirements are relatively low. The large majority of salt cavern storage
facilities have been developed in salt dome formations located in the Gulf Coast states.
(Situational Storage). Cavern construction is more costly than depleted field conversions
when measured on the basis of dollars per thousand cubic feet of working gas capacity,
but the ability to perform several withdrawal and injection cycles each year reduces the
per-unit cost of each thousand cubic feet of gas injected and withdrawn.
Slide 8. (Virtual Pipelines)

● A virtual pipeline refers to a system that transports natural gas from a source to
consumers or businesses using methods other than traditional, fixed pipelines. The term
“virtual pipeline” is used because it mimics the function of a physical pipeline but utilizes
alternative means of transportation.
● The system is often deployed in areas where conventional pipelines are not available or
not feasible due to economic, geographic or environmental reasons. They have also
been instrumental in providing emergency or temporary supply during pipeline
disruptions.
Features of virtual pipelines

● Mobile and flexible.

● Modular and scalable, allowing for changes in capacities based on demand.
● Often combined with specialized storage facilities on site, in order to guarantee on
demand access.
● Incorporate advanced technology for gas compression or gas liquefaction, as well as
specialized transportation equipment.
● Are subject to specific regulatory and safety standards to ensure security and high
quality.
Advantages of a virtual pipeline system

● Capacity to deliver gasses to locations not served by conventional pipelines,

including remote or isolated areas, industrial sites or mines. For instance, the IEA cites
the case study of Madeira’s only natural gas power plant, which is supplied by a virtual
pipeline system consisting of both truck and ship deliveries and a regasification plant in
the island.
● Fast deployment compared to traditional pipeline infrastructure, enabling the possibility
of urgent supply.
● Can be used as temporary solutions to satisfy seasonal demand, emergency needs or
while permanent systems are deployed.

Slide 9. (Distribution)

Natural gas is delivered from the transmission system to end-use customers by

the distribution system. Unlike the transmission system, which carries large volumes of
natural gas at high pressures, the distribution system winds through cities and other
areas of gas demand at much lower pressures and through much smaller line pipe —
typically from two to 24 inches in diameter. Pressures typically range from(but can
accommodate up to 200 psi) 60 psi (nearer the transmission line) to 1 psi as it reaches a
home or small business. This pressure is important because the appliances used in your
home or business are not designed to accommodate high gas pressure. Thus, as a rule,
the closer the pipe gets to the end user, the smaller it is and the lower the pressure gets.
Most commonly distribution mains operate at pressures of 10 psi or more, and the last
pressure reduction to 1/4 psi occurs just prior to the customer meter.
A city gate station (CGS) is a measuring and pressure regulating station where a local gas
utility receives natural gas from a transmission pipeline. CGSs are the final point of
transmission before gas is distributed to consumers.

Here are some functions of a CGS:

● Pressure reduction: CGSs reduce the pressure of natural gas from the transmission
pipeline to a level suitable for consumer use. Transmission pressures can range from
200 to 1,500 pounds per square inch (psi), while distribution pressures can be as low
as 3 psi.
● Gas measurement: CGSs use metering devices to measure the flow of gas.
● Odorant addition: CGSs add mercaptan, a compound that smells like rotten eggs, to
odorless natural gas to make it easier to detect leaks.
● Gas delivery: CGSs supply gas to the city at the required pressure for consumption.

CGSs are typically located outside of a city and are covered by a metal building or
fiberglass enclosure to protect them from the weather. They contain equipment such as pipes,
valves, flanges, meters, pressure regulators, and pneumatic controllers.

Natural gas distribution stations, also known as city gates, are facilities that deliver
natural gas to local users in large cities. They are part of a natural gas distribution network that
includes pipelines, compressors, and other equipment.

City gate stations serve an important role in the natural gas distribution network.
Consisting of metering and pressure regulating facilities, they are located at the custody
transfer points where natural gas is delivered from transmission pipelines into the
high-pressure lines of the local distribution company.

Other surface facilities within a distribution system include heaters to replace the
heat lost from gas expansion, and downstream pressure regulators, which further reduce
gas pressure so that gas can be delivered safely to customers.

Typically city gates have a predetermined required pressure range for the gas to be
handed over to the local system. It is also where the odorant, mercaptan, is added to the gas,
giving it that distinctive rotten egg smell.

Gate stations and surface facilities contain equipment components such as pipes,
valves, flanges, fittings, open-ended lines, meters, and pneumatic controllers to monitor and
control gas flow

Gate stations typically contain metering runs as well as pressure regulators, which
reduce the transmission line pressure from several hundred pounds per square inch gauge
(psig) to a suitable pressure for the distribution system (usually less than 300 psig).
LCD (Local Distribution Companies)

A local distribution company, or LDC, is the gas utility that transports and distributes gas
from the citygate to end users. LDCs may also take responsibility for purchasing and
reselling gas to certain classes of end-use customers. Most LDCs are investor-owned
utilities regulated by state commissions, but in some cases LDCs are owned by
municipalities and are not regulated by the state utility commission. Prior to deregulation
most gas was purchased by LDCs and resold to end users under regulated rates and
rules. Currently, many large end users — and in some states small customers — purchase their
gas supply directly from marketers or producers and simply pay the LDC for transport services.

Some LDCs may also own storage. They may use this storage for their own supply portfolio
(serving end-use customers) and/or may offer storage services to end-use customers and/or
marketers.