Category Archives: Liquid natural gas

Union Pacific aims to be first railroad to haul liquefied natural gas

Repost from The Omaha World-Herald

Union Pacific aims to be first railroad to haul liquefied natural gas

By Russell Hubbard, March 19, 2015 1:00 am
Union Pacific
THE WORLD-HERALD

Union Pacific Railroad has applied for permission to haul liquefied natural gas, which would add another combustible cargo to a U.S. rail network already being criticized for transporting ethanol and crude oil through populated areas.

The Omaha-based railroad said the application for a permit from the Federal Railroad Administration is in response to a request for liquefied natural gas transportation from an existing customer. Union Pacific operates 32,000 miles of track in the western United States, which is home to many natural gas production and storage installations.

If Union Pacific is granted the permit, it would be a first. The Association of American Railroads said none of the six other Class I freight railroads are hauling liquefied natural gas.

The permit application coincides with a major bump in railway ethanol and crude oil cargo, which has attracted heavy opposition after a fatal oil train explosion in Canada in 2013 and three oil train fires so far this year in the United States and one in Canada.

“The timing for U.P. is awkward given recent accidents and mounting public apprehension,” said Joseph Schwieterman, a transportation sciences professor at Chicago’s DePaul University. “I am sure there will be pressure for a go-slow approach on it, but the fact is that railroads are the best bet to get significant amounts of natural gas to market given the decades it takes to permit and construct pipelines.”

Details about the application are secret. A Federal Railroad Administration spokesman said application and supporting materials are not available for public inspection during the review process. “Federal law limits our disclosure” of which customer is requesting transport of liquefied natural gas, Union Pacific spokesman Aaron Hunt said.

Liquefied natural gas, or LNG, however, is a well-known commodity. Liquefying the fuel — which most often moves via pipeline, truck and ship — compacts it enormously. That makes it attractive to shippers and those who want to store large quantities. Liquefied gas takes up 1/600th the space of the gaseous form. The liquid gas can then be converted back into its gaseous state for use or further shipment in pipelines.

Union Pacific’s permit request comes as U.S. natural gas production is climbing, up 37 percent since 2000. Part of the boom is the conversion of coal-burning electric plants to natural gas. There also are 128,000 vehicles in the United States running on compressed natural gas, up 12 percent since 2010.

“It has only been a matter of time for the railroads to get in on the natural gas boom,” Schwieterman said. “It is a fast-growing industry with fast-growing logistical needs.”

But some people are holding back. Eddie Scher, an officer with ForestEthics, a California-based lobbying group that advocates the gradual elimination of fossil fuels, said that transporting another flammable cargo on the rail network is a very poor idea.

“The rail system in America was built to connect population centers, with trains going through every downtown in the country,” Scher said. “It was never designed to haul hazardous materials, and in fact, you could say that if you were to design a rail system for hazardous materials, the one we have is the opposite of the one you would design.”

Scher said federal safety rules are already out of date for oil trains and their tank cars, with millions of gallons of oil a day riding the rails, up from nearly zero only five years ago, courtesy of skyrocketing production from new fields in Montana and North Dakota.

“To entertain the idea of new and potentially more dangerous cargo makes no sense at all,” Scher said.

Hauling dangerous cargo is nothing new for Union Pacific and other railroads, which haul chlorine, explosives and sulfur.

Safety is a main point of emphasis for every cargo, said Hunt, the Union Pacific spokesman. The national train accident rate has fallen 42 percent since 2000 and 79 percent since 1980, according to the railroad association. At Union Pacific, derailments have fallen about 7 percent since 2010, to three for every million miles of train travel.

“We have the same goal as everyone else, and it’s in the best interest of our customers, shareholders and the communities where our employees and their families live, work and play to operate as safely as possible,” Hunt said.

Q&A: For vehicles, oil’s days are numbered

Repost from the Houston Chronicle
[Editor: Interesting and possibly a “realistic” view, but not very optimistic when it comes to a progressive timeline for change….  – RS]

Q&A: For vehicles, oil’s days are numbered

By Collin Eaton, November 21, 2014
Henrik Madsen expects “a transformation in that oil will lose its position in transportation.”

One day, crude oil will lose its grip on cars and trains and ships, but with costs to produce alternative energy still high, a change that big will likely take many decades. How long is anyone’s guess, says one man with a head start on most prognosticators.

Henrik Madsen, the CEO of Norway’s international shipping and oil field equipment classifier DNV GL, says the commercial automobile market is the last bastion of crude oil, after its disappearance from power plants and heating fuels in the second half of the 20th century. Its days in vehicles and vessels are numbered.

Searing cold liquefied natural gas – don’t spill it, it’s minus-261 degrees – and compressed natural gas are elbowing their way into crude’s territory, powering some large trucks and locomotives, and finding prime real estate aboard big tankers as international demand for gas surges.

LNG’s advance in vehicles is likely good news for those counting on the earth’s resources in coming decades, Madsen says. Oil, he added, is too precious to burn in a combustion engine, and should be reserved as a feedstock for ingredients to make high-end products including clothing, plastics, coatings and pharmaceuticals.

Energy

The emergence of alternative energy sources in transportation isn’t great news for oil-producing nations like Saudi Arabia whose economies are linked to crude-pumping wells, he said.

“They might be a little bit afraid of shale oil, but I think they’re more afraid of the use of oil in transportation disappearing,” Madsen said.

DVN GL has an office and oil and gas operations in Katy. Madsen, recently in Houston, spoke with the Chronicle about the pivot to LNG and compressed natural gas fuels in trucking, and the early signs that point to a future of lower oil consumption. Edited excerpts follow:

Q: You describe the “energy trilemma” as the balance between protecting the environment while retaining affordable energy costs and ensuring we have enough energy. Where is that effort today?

A: I think everybody agrees we need many energy sources in the future. We need oil, gas, coal, wind, solar, geothermal. One of the things we’re focused on is how we use the different forms of energy. We think there will be a transformation in that oil will lose its position in transportation. On the trucking side in the U.S., that transformation is happening fast, because the price of LNG is 10, 20 percent of the price of diesel. You’ve seen some train companiesconsider using gas instead of diesel, you’ve seen it in the oil field service sector, where they’re using gas to drill for shale oil.

Q: Expand on what’s driving this.

A: In terms of emissions, you will reduce local pollution a lot. But primarily it is because gas is much cheaper. From a technical point of view, this major change would not be impossible, say over a 20- to 30-year period. But at the same time, it will be as the cost of transportation fuels goes up, so how slow the transformation will be is anybody’s guess.

Q: Do you envision less oil exploration in the future?

A: That may be 30 or 40 years from now. I think consumption will be lower then. But people don’t talk much about that. They’re talking about how we’re at peak oil and how we can find more oil and so on, instead of looking at what it’s used for. I personally think it would be nice to reserve oil for high-value products.

Q: What are the safety concerns related to using LNG as a transportation fuel?

A: It’s very cold, so if you spill it on a ship, the steel will crack. LNG can burn but it doesn’t explode, so LNG is remarkably safe. They’ve been transporting LNG around the world in tankers for 40 years and there have not been any fatalities.

Q: Are renewable energy sources growing fast enough?

A: Many people talk the growth down, but at least in Europe there’s still a high growth in renewables, and there’s also high growth in the U.S. I think the International Energy Agency constantly underestimates the growth. If you look at solar now, prices are coming down much faster than we thought, and it’s actually competitive for local production. Onshore wind costs are coming down and we’re trying to drive offshore wind costs down.

Q: Is wind held back by its reliance on subsidies?

A: They don’t need subsidies. The more they talk about subsidies, the more everybody thinks they’ll need subsidies forever and that it’s not a long-term solution, which is actually wrong.

Two Union Pacific Freight Trains Collide Head-On in Arkansas, Killing 2

Repost from The Wall Street Journal

NTSB Investigating Arkansas Train Crash

By Laura Stevens, Aug. 18, 2014

Investigators are examining tracks, equipment and human performance factors to determine why two Union PacificCorp.  trains collided head-on collided head-on in Arkansas early Sunday morning after it appears signals were functioning correctly, according to the National Transportation Safety Board.

The crash, which occurred at about 2:30 a.m. in Hoxie, killed two train crew members and injured two others, according to authorities. One tank car, containing unrefined alcohol, caught fire and burned for hours.

The two trains collided at a location where two main tracks converge into one main track, said Mike Hiller, the NTSB’s investigator in charge of the probe. The plan was for the southbound train, which was on the double track, to stop and wait for the northbound train to take the other track.

“We know that this did not happen and a collision occurred right at that point,” said Mr. Hiller. “We are still trying to gather data to find out why that southbound train did not stop.”

In addition to examining equipment such as the brakes, investigators have requested medical documents and are scheduling interviews to look at the human performance factors. They’ve also shipped the trains’ black boxes to Washington, D.C., for examination.

Liquid natural gas and sulfuric acid were among the hazardous materials on board, Mr. Hiller said. Neither train contained any crude oil tank cars, and all hazardous material was loaded properly into the correct type of tank cars, he added.

The northbound train carried 92 cars, 11 of which contained flammable liquid class hazardous materials including the car with the alcohol, Mr. Hiller said. It originated in North Little Rock, Ark. The southbound train originated in St. Louis, Mo., with 86 cars, 20 of which were carrying hazardous materials.

About 500 residents were evacuated as a precaution in an approximately 1.5 mile area Sunday.