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August 2016

LNGINDUSTRY | August 2016 www.lngindustry.com


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ISSN 1747-1826

CONTENTS AUGUST 2016

03 Comment 39 Flexible hose development


Mutaz Bashir, Dunlop Oil and Marine Ltd, UK, outlines a
number of novel aspects in the development of flexible LNG
05 LNG news hose technology.

10 Steady as she goes 43 Two heads are better than one


Carlos Sol and Lindsey Swiger, Baker Botts, USA, outline recent John Lamb, Alpha Process Controls, UK, explains why
LNG regasification infrastructure developments in Latin America, increased collaboration will create better connections for the
despite challenging economic times. LNG transfer industry.

10 47 Clean, green shipping machine


Dr Gerd Michael Wrsig, DNV GL, Germany, presents an
Buenos Aires, Argentina.

environmentally friendly, efficient and flexible box ship design.


Carlos Sol and Lindsey
Swiger, Baker Botts,
USA, outline recent LNG

Steady
regasification
infrastructure
I
n February 2016, Cheniere Energy loaded its first cargo
from the Sabine Pass LNG terminal in Louisiana, US, onto

51 Well fed
developments

goes
the 160 000 m Asia Vision LNG carrier for delivery to
3

as she
Brazils Guanabara Bay LNG terminal. This cargo represented an
in Latin auspicious 1

beginning for the Latin American LNG trade in 2016,


America, despite which still remains a relative newcomer to the industry. As shown
challenging inLatin
Table 1, which highlights key LNG importers in the Americas,
American LNG imports steadily increased throughout the
economic times. 2000s and, in 2014, the region consumed 22.3 million t of LNG,

Steve Cheaney, Clark Dickson, and Phani Patchipulusu,


which accounted for approximately 9% of the total global LNG
trade. In 2015, the global demand for LNG increased 2.5% over
2014, and Mexico, Brazil, Argentina, and Chile continued to
represent Latin America as active LNG consumers, each within

Dickson Process Systems LLC, USA, look at feed gas


the top 15 LNG importers worldwide.2

pretreatment processes for the LNG industry.

55 LNG trade: an agents perspective


Nick Elliott, Inchcape Shipping Services, UK, presents a
round-up of LNG activity from around the world.

10 11 59 Pump & turbomachinery equipment review


LNG_July_2016_10-16.indd 10 29/07/2016 11:38 LNG_July_2016_10-16.indd 11 29/07/2016 11:38

LNG Industry previews a selection of the most advanced pump


and turbomachinery equipment in the build up to this years
17 Strategic design considerations for LNG terminals Turbomachinery & Pump Symposia in Houston, Texas, USA,
from 12 to 15 September 2016.
Dale Williams, Dan McCartney and Shawn Hoffart,
Black & Veatch Corp., USA, outline important factors to consider
when designing LNG terminals.

23 Striving for stronger results


John Jeffers, SNC-Lavalin, United Arab Emirates, explains how to
achieve predictable outcomes for modular construction on LNG

ON THIS MONTHS COVER


projects.

26 Meet in the middle Elliott Groups scalable line


Steve Martin, Elliott Group, UK, and the Linde StarLNG team, of centrifugal compressors
LNGINDUSTRY | August 2016

Germany, look at standard compression packages for mid scale is widely used for LNG
LNG plants. refrigeration processes and
boil-off gas (BOG), flash gas

30 FLNG: a concept comes of age August 2016 and booster applications


in mid scale and baseload
Tor-Ivar Guttulsrd, ABS, USA, explains why developing the LNG plants. For 50 years,
floating LNG sector is still important, despite the current low oil Elliott Group has supplied
and gas price environment. highly efficient, reliable
LNG compression trains
34 Enabling harsh environment FLNGs throughout the world.

Brian Roberts, Technip, France, and Lars deskaug,


HiLoad LNG AS, Norway, present a solution for LNG transfer on
floating LNG units in harsh environments.
www.lngindustry.com

LNG_August_2016_OFC.indd 1 01/08/2016 12:08

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CALLUM OREILLY EDITOR

COMMENT
A
month after the Panama Canal finally opened its to Asia in the near future: The Panama Canal expansion [] was
expanded locks for business at the end of June, the first once expected to be a game changer for US LNG exports to Asia
two LNG carriers passed through the newly-enlarged [] But against the backdrop of this major transition in the global
waterway. The first carrier to make the transit was the LNG market, the prospects for US LNG into Asia via the expanded
Shell-chartered Maran Gas Apollonia, laden with US LNG from canal look less promising, at least in the short-term.2
Cheniere Energys Sabine Pass terminal. According to reports, Andres Rojas, IHS Senior Principal Researcher, also questions
the carrier is destined for east Asia. Shortly afterwards, BPs the effect that the canal will have on US LNG shipments to
British Merchant passed through the canal, en route to Mexico Latin America: The expanded canal will cut the voyage time
from Trinidad and Tobago. significantly, but if you look at the fees [the Panama Canal
The transits mark a new era for world energy, according Authority] will be charging, and you consider that bunker fuel costs
to Panama Canal Administrator and CEO, Jorge L. Quijano. are now so low, it doesnt really make sense to pay the canal fee.
Approximately 90% of the worlds LNG shipping fleet is now able In my opinion, the Panama Canal is not going to play a huge role in
to pass through the expanded canal, taking advantage of the new the Latin American LNG trade.3
shortcut that it provides to markets in Asia and Latin America. US Rojas argues that LNG spot pricing in the Atlantic vs
LNG producers, in particular, stand to benefit from the expansion of Pacific Basins will ultimately determine the impact that the
the canal. According to the US Energy Information Administration Panama Canal will have on future LNG trade flows. As the
(EIA), an LNG carrier travelling from the US Gulf Coast to Japan via differential between the two basins narrows and markets become
the Panama Canal will reduce its voyage time by up to two weeks more regionalised, Rojas predicts that the canal will become less
compared to voyages around the Cape of Good Hope (from relevant for LNG traders: The Panama Canal is not going to be
34 days to just 20 days). The canal will also considerably reduce the big saviour of the US Gulf LNG market that many people were
the journey time for carriers destined for South America, e.g. from thinking it was going to be back when prices in the Far East were
20 days to 8 9 days for trips to Chile.1 still quite high.
Furthermore, the canal is expected to reduce While the expanded Panama Canal will certainly contribute to
transportation costs. Based on IHS data, the EIA states that a more global LNG market, it remains to be seen whether its role
the cost of a round trip voyage from the US Gulf Coast to will be as significant as many once predicted.
northern Asia via the Panama Canal will be approximately 1. Expanded Panama Canal reduces travel time for shipments
US$0.20 US$0.70/million Btu lower than travelling around the of U.S. LNG to Asian markets, U.S. Energy Information
Administration, (30 June 2016), http://www.eia.gov/
Cape of Good Hope, and US$0.30 US$0.80/million Btu lower todayinenergy/detail.cfm?id=26892
than transiting through the Suez Canal. 2. Citi sees U.S. LNG eluding Asia as low prices trump Panama
Despite the EIAs prediction that more than 550 LNG carriers Canal, Bloomberg, (14 July 2016), http://www.bloomberg.
a year could pass through the canal by 2021, doubts have been com/news/articles/2016-07-14/citi-sees-u-s-lng-eluding-asia-as-
low-prices-trump-panama-canal
raised about the short-term impact of the waterway on LNG trade.
3. Panama Canal expansion: LNG sector outlook, IHS Fairplay,
In a report, Citibank analysts state that the current LNG oversupply (31 May 2016), http://fairplay.ihs.com/commerce/
and resulting lower prices do not favour US LNG being shipped article/4269316/panama-canal-expansion-lng-sector-outlook
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Tower Technical Bulletin
Shell VersiSwirl
Background Primary Separation
In todays critical applications the best performance is required Selection of the appropriate primary separator is key to the
from gas/liquid separation equipment. To meet this demand systems overall performance, whether the intention is to optimize
Sulzer has launched the Shell VersiSwirl axial cyclone which the droplet size reaching the Shell VersiSwirlTM or unload liquid
incorporates the latest innovations from more than ten years of from the internals to prevent re-entrainment and increase
R&D cooperation between Sulzer and Shell. performance.

Technology
The Shell VersiSwirl axial cyclone represents an evolution of the
long established SMS family of separators (with more than 1000
installations in successful operation). In comparison with the
previous generation of technologies the Shell VersiSwirl gives a
step-change in performance allowing for either a smaller vessel
(greenfield projects) or greater capacity (brownfield revamps).
The numerous technological improvements incorporated in the
Shell VersiSwirl include a new aerodynamic swirler, optimized
secondary gas handling and liquid film drainage.

Figure 2: It is the combination of equipment in the Shell VersiSwirl


that provides optimized performance over the full operating range.

New Combinations
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device performance.
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capacity reduces the overall load in the vessel internals
where critical guaranteed performance is a must.

Figure 1: The Shell VersiSwirl is arranged as a series of boxes Conclusion


each with an individual drain pipe. The Shell VersiSwirl gives high performance for demanding
applications and when combined with optimized technologies
from Sulzers portfolio a tailored solution can be provided to meet
the needs of the customer.
In the Shell VersiSwirl, liquid is separated from the gas stream
by impaction of the liquid droplets on the axial cyclone tube
wall which are then drained via slits into a collection chamber. www.sulzer.com
The droplets are then forced to the wall by centrifugal forces Please check for your local contact
induced by the gas vortex generated by the swirler.

Shell VersiSwirl Edge


For the most demanding duties the Shell VersiSwirl can be The Sulzer Applications Group
combined with other technologies which provide an Edge over its
Sulzer has over 150 years of in-house operating and
already impressive performance.
design experience in process applications. We understand
Inlet Device your process and your economic drivers. Sulzer has the
For non-critical duties a Shell Schoepentoeter is used as know-how and the technology to design internals with
standard, but in challenging applications a Schoepentoeter reliable, high performance.
Plus will greatly reduce entrainment from the inlet zone.

Europe, Middle East and India Asia Pacific North and South America
Sulzer Chemtech Ltd. Sulzer Chemtech Co., Ltd. Sulzer Chemtech USA, Inc.
P.O. Box 65 10 Benoi Sector 8505 E. North Belt Drive
8404 Winterthur, Switzerland Singapore 629845 Humble, TX 77396, USA
Phone: +41 52 262 50 28 Phone: +65 6515 5500 Phone: +1 281 604-4100
chemtech@sulzer.com ctsg@sulzer.com ctus@sulzer.com

Legal Notice: The information contained in this publication is believed to be accurate and reliable, but is not to be construed as implying any warranty or guarantee of
performance. Sulzer Chemtech waives any liability and indemnity for effects resulting from its application.
LNGNEWS
South Korea Papua New Guinea
Order placed for largest ever LNG-fuelled bulk carrier ExxonMobil to acquire InterOil
H yundai Mipo Dockyard (HMD) has signed a contract to
build a 50 000 DWT bulk carrier with ILSHIN Logistics.
This will be the largest bulk carrier ever ordered to use LNG as
E xxonMobil Corp. has reached an agreement to acquire
InterOil in a transaction worth more than US$2.5 billion.
Under the agreement, ExxonMobil will acquire all of the
fuel. The project is a collaboration between steelmaker POSCO outstanding shares of InterOil for a fee of US$45 per share,
and ILSHIN Logistics to develop a new generation of ships for plus an additional cash payment based on the Elk-Antelope
greener shipping. resource size.
The ship, which is expected to be delivered in 4Q17, will The Chairman and Chief Executive of ExxonMobil,
transport limestone cargoes in the Korean coastal trade for Rex W. Tillerson, said: This agreement will enable
POSCO. Lloyds Register (LR) and the Korean Register (KR) will ExxonMobil to create value for the shareholders of both
provide dual classification and certification, verifying compliance companies and the people of Papua New Guinea [...]
with the International Gas Fuel (IGF) Code. InterOils resources will enhance ExxonMobils already
The new type of cryogenic steel developed by POSCO is successful business in Papua New Guinea and bolster the
high in manganese and will be used for the 500 m3 capacity companys strong position in liquefied natural gas.
Type C LNG fuel tank, located on the aft mooring deck. The steel The Chairman of InterOil, Chris Finlayson, added: Our
and its welding consumables have already received approval board of directors thoroughly reviewed the ExxonMobil
from LR and other classification societies. The steel is expected transaction and concluded that it delivers superior value
to help reduce capital costs in LNG-fuelled and LNG carrier to InterOil shareholders. They will also benefit from their
systems. interest in ExxonMobils diverse asset base and dividend
Chang-hyun Yoon, EVP of HMD Initial Planning Division, stream.
said: We should not hesitate to adopt new technologies and Once the agreement has been concluded, ExxonMobil
materials as we strive for a greener shipbuilding and shipping will be granted access to InterOils resource base, including
industry. The worlds first application of high manganese steel interests in six licenses in Papua New Guinea covering
for an LNG storage tank is a challenge but I believe that the approximately 4 million acres (including PRL 15). The
material expertise of POSCO and the engineering capability of Elk-Antelope field in PRL 15 is the anchor field for the
HMD will offer the right solution to the shipowner. Additionally, proposed Papua LNG project. The transaction, which
the technology evolution represented by this project paves is subject to the satisfaction of closing conditions and
the way for small scale LNG carrier designs incorporating high approval from the necessary parties, is expected to close in
manganese steel Type C cargo tanks at a competitive price. September 2016.

Belgium
Commissioning of Caribbean FLNG commences
E xmar has announced that commissioning for its
floating LNG (FLNG) project, Caribbean FLNG, has
now commenced. The delivery of the vessel is expected
Wison, is on schedule. It is expected to be delivered
by mid-2017, with Exmar currently holding talks with a
number of companies regarding the vessels long-term
to commence in 3Q16, after it has been successfully employment.
performance-tested at the Wison Heavy Industry Exmar added that all of its FSRUs and LNG carriers
shipyard in Nantong, China. Exmar claims that a number (except for Excel) remain committed to long-term charter.
of options are being discussed regarding the vessels Therefore, they are not impacted directly by the rate
employment. fluctuations on the global market. The Excel is presently
The company also claims that its floating storage employed on the spot market, and is continuing to
regasification unit (FSRU), which is being built by benefit from a minimum revenue undertaking.

AUGUST 2016 LNGINDUSTRY 5


LNGNEWS
Panama USA
First LNG carrier transits the expanded Golar and Schlumberger form OneLNG joint
Panama Canal venture
T he Panama Canal Authority has confirmed the transit of the
first ever LNG carrier through its expanded locks.
On Monday 25 July 2016, the Shell-chartered
G olar LNG Ltd and Schlumberger have announced the
creation of a new joint venture (JV) to rapidly develop
low cost gas reserves to LNG. OneLNGSM a combination
Maran Gas Apollonia arrived at the Panama Canal from the of Schlumberger reservoir knowledge, wellbore technologies
Sabine Pass LNG terminal on the US Gulf Coast. and production management capabilities, alongside Golars
The expanded Panama Canal, which can accommodate low cost floating LNG (FLNG) solution will offer gas resource
90% of the worlds LNG carriers, will significantly reduce voyage owners a fast and low cost development.
times for LNG carriers departing the US East and Gulf Coast for Golar and Schlumberger have 51/49 ownership of the JV.
Asia (by up to 22.8 days per round trip). Vessels departing the The companies have agreed an initial investment commitment
US Gulf Coast for the West Coast of South America also stand to to cover the estimated equity needed to develop the first
benefit. project. They will also discuss additional debt capital as
The Panama Canal Authority also notes that LNG carriers required, on a project-by-project basis. This future financing will
travelling from production plants in Trinidad and Tobago to take into account Golars FLNG intellectual property through an
regasification plants in Chile could save up to 6.3 days in transit equitable contribution mechanism to be agreed between the
time via the expanded canal, compared to the Magellan Strait. parties.
The Panama Canal has also instituted a new tolls structure to A statement from Golar LNG said that OneLNG will be the
offer cost savings to LNG carriers conducting round trip voyages. exclusive vehicle for all projects that involve the conversion of
The new tolls reduce ballast fees for LNG customers who use natural gas to LNG which require both Schlumberger Production
the same vessel for a round trip voyage as opposed to using an Management services and Golars FLNG expertise. Both
alternate route, so long as the transit in ballast is made within Golar LNG and Schlumberger are confident that OneLNG will
60 days after the laden transit was completed. conclude five projects within the next five years.

News Highlights
NEWS HIGHLIGHTS

XX METI completes first LNG


import transaction
XX DOF Subsea wins Shell Prelude FLNG
contract
XX SCT&E LNG awards MSA to Technip

Visit our website for more news: www.lngindustry.com


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ONSHORE LIQUEFACTION
FLOATING LNG
Rio Grande LNG / Image courtesy of NextDecade, LLC

LNG REGASIFICATION
LNG PEAK SHAVING
LNG STORAGE

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14M052016H
LNGNEWS
Worldwide Canada
Top names drive forward LNG as a marine fuel Honeywell awarded Goldboro LNG contract
A new cross-industry initiative has been established that aims
to accelerate the use of LNG as a marine fuel. Partners in the
SEA\LNG initiative include Lloyds Register (LR), Carnival Corp.,
H oneywell Process Solutions (HPS) has announced that
it will provide full automation and safety systems for
Pieridae Energys Goldboro LNG project, which is currently
DNV GL, ENGIE, ENN, GE, Gaztransport & Technigaz (GTT), under construction in Eastern Canada.
Mitsubishi, NYK Line, Port of Rotterdam, Qatargas, Shell, TOTE HPS will also serve as integrated main automation
and Wrtsil. contractor (I-MAC) for the LNG project, which will be able to
The coalition will largely focus on supporting the process 10 million tpy of LNG. The terminal, which will have a
development of LNG bunkering in major ports, educating storage capacity of 690 000 m3, is expected to startup in 2021.
stakeholders about the various opportunities and risks involved Honeywell will be responsible for designing, delivering
in the use of LNG as a marine fuel, and developing consistent and installing the distributed control systems (DCS), safety
regulations for cleaner shipping fuels. instrumented systems, fire and gas systems, and operator
Peter Keller, Chairman of SEA\LNG and Executive Vice training simulator (OTS) for the LNG project. The company
President of TOTE Inc., said: We recognise the need to work will also help Pieridae integrate all plant infrastructure to the
closely with key players across the value chain, including business enterprise systems.
shipping companies, classification societies, ports, major LNG Honeywell will use a number of its integrated solutions
suppliers, downstream companies, infrastructure providers to reduce risks and minimise potential schedule delays for
and original equipment manufacturers (OEMs) to ensure an both Goldboro LNG and its engineering, procurement and
understanding of the environmental and performance benefits construction (EPC) contractor during the facility startup.
of LNG as a marine transport fuel. SEA\LNG aims to address Vimal Kapur, President, HPS, said: Honeywells
market barriers and help transform the use of LNG as a marine Integrated-MAC role will help Pieridae eliminate significant
fuel into a global reality. project risk, compress its schedule, and ramp up to nameplate
Leo Karistios, LRs Gas Technology Manager, said: production capacity faster.
LNG-fuelled shipping has mainly been for the visionaries and, Alfred Sorensen, President and Chief Executive Officer,
until now, concentrated in specialist ship sectors short sea Pieridae Energy, added: I am confident that Honeywells
shipping and ferries, mainly sailing between two fixed ports. experienced infrastructure team will work very well with my
We want to help drive the expansion of LNG as a marine fuel of engineering contractor, and their advanced software team will
choice, with not just more short sea and local ships burning gas, help Pieridae put the right plan in place to start the business up
but also the deep sea trades. effectively and efficiently on day one of operations.
DIARY DATES

06 - 09 September 2016 20 - 23 September 2016 26 - 28 October 2016


SMM CWC World LNG & Gas Series: Gas Asia Summit
Hamburg, Germany Asia Pacific Summit Singapore
www.smm-hamburg.com/gmec Singapore www.gasasiasummit.com
asiapacific.cwclng.com

12 - 15 September 2016 27 - 28 September 2016 12 - 15 December 2016


45th Turbomachinery & 32nd Pump Symposia Tank Storage Asia CWC 17th World LNG Summit
Houston, Texas, USA Singapore Barcelona, Spain
tps.tamu.edu www.tankstorageasia.com world.cwclng.com

8 LNGINDUSTRY AUGUST 2016


www.ChartLNG.com
Steady
goes
as she

10
Buenos Aires, Argentina.

Carlos Sol and Lindsey


Swiger, Baker Botts,
USA, outline recent LNG
regasification
infrastructure
I
n February 2016, Cheniere Energy loaded its first cargo
from the Sabine Pass LNG terminal in Louisiana, US, onto
developments the 160 000 m Asia Vision LNG carrier for delivery to
3

Brazils Guanabara Bay LNG terminal. This cargo represented an


in Latin auspicious 1

beginning for the Latin American LNG trade in 2016,


America, despite which still remains a relative newcomer to the industry. As shown
challenging inLatin
Table 1, which highlights key LNG importers in the Americas,
American LNG imports steadily increased throughout the
economic times. 2000s and, in 2014, the region consumed 22.3 million t of LNG,
which accounted for approximately 9% of the total global LNG
trade. In 2015, the global demand for LNG increased 2.5% over
2014, and Mexico, Brazil, Argentina, and Chile continued to
represent Latin America as active LNG consumers, each within
the top 15 LNG importers worldwide.2

11
Most of Latin Americas demand for LNG is driven by the and the related impacts of and inter-relationships with the global
regions push to gas-fired electricity generation and diversification LNG trade.
away from hydroelectric power. Currently, the region produces
approximately 640 million m3/d of natural gas (approximately Argentina
7% of natural gas production globally) and consumes The election of Mauricio Macri as the President of Argentina
approximately 700 million m3/d.3 Consequently, in 2016, many in November 2015 offered promises of transformative change
nations in the region continued their push to develop the for the country. By April 2016, these promises became reality
corresponding LNG regasification infrastructure that is needed to when the government both settled with longstanding hold-out
accommodate their LNG import demands. An expanded LNG creditors on previously defaulted Argentine sovereign debt
regasification infrastructure makes particular sense for Central and returned to the international capital markets with a new
and South America, where LNG complements the current system US$16.5 billion bond issuance. Continuing with this trend of
of hydroelectric generation, and larger imports of LNG can be moving beyond the past controversies and policy failures of his
arranged relatively quickly on the spot market (albeit, typically at predecessor, Argentina and Chile announced cross-border gas
a premium over long-term contracted quantities) in the event of sales in May 2016, whereby imported LNG in Chile would be
insufficient rainfall. regasified and sold to Argentina using the pipelines that had been
Rather than undertake large scale, up-front investment in used to transport gas from Argentina to Chile in the early 2000s.
multi-billion dollar onshore LNG regasification facilities, many These sales would supplement Argentinas import requirements
developers in the region have instead opted for the use of during its winter months and were forecast to be the equivalent
floating storage regasification units (FSRUs). Performing functions of six cargoes of LNG.4 The impact of these cross-border sales
similar to traditional onshore regasification facilities at a fraction on Argentinas own LNG import requirements is yet to be
of the initial investment and lead time, FSRUs are floating vessels determined, but the policy shift is a dramatic contrast to the gas
that receive LNG from an LNG tanker, process, store, and regasify supply restrictions that had recently existed between the two
the natural gas onboard, and then offload the regasified natural countries.
gas, typically into a pipeline. The FSRU is usually moored in place
for a period of time, and can be transported and used in other Brazil
locations, leaving behind minimal infrastructure. Already, there has been much discussion in 2016 highlighting
Currently, several Latin American countries have FSRU Brazils shrinking economy and its potential effects on the
terminals. Brazil has three, Argentina has two, and Chile, Southern Cone and the rest of Latin America. It is estimated
Colombia and Uruguay are in the process of developing such that Brazils economy could contract by up to 7.5% by the end
terminals. It is likely that, going forward, key players in the of this year as inflation and unemployment climb to 10%. The
Latin American regasification sector will continue to rely on the impacts of such destabilisation are reverberating throughout
use of FSRU terminals for continued growth and stability. the region and having profound impacts on the Brazilian energy
However, despite the continued development of LNG sector.5 Specifically, Petrobras, the state-owned integrated
regasification infrastructure in Latin America, the broader energy company of Brazil, announced in February 2016 that it was
economic trends are foreboding. The drop in international considering the potential divestiture of its electricity sector and
commodity prices, both in the hydrocarbon and mining sectors, related LNG infrastructure assets as part of its move to refocus
have slowed the economies of several nations within the region. on its core oil ventures. The goal of Petrobras midstream and
The growth rates in these countries have stalled, or, as in the case downstream divestitures, which would effectively remove its
of Brazil, have gone into recession. Furthermore, most currencies status as an integrated energy company, appears to be twofold.
have also devalued against the US dollar. These factors are likely Firstly, and most immediately, to help the company to raise over
to complicate or delay LNG regasification infrastructure US$57 billion to clear accumulated corporate debts. Secondly,
development projects that are in their early to middle stages. to continue the practice of scaling down its investments and
The remainder of this article surveys the key developments in assets in non-core segments (as evidenced by the sale of its
LNG regasification infrastructure development in the larger 49% stake in its gas distribution subsidiary Gaspetro to Japans
economies of the region in 2016. It also addresses other related Mitsui in December 2015).6 Certainly, such a transaction would
notable developments in the energy sectors of these countries be a significant restructuring of the countrys internal energy
infrastructure.
Nonetheless, the
Table 1. Total LNG imports (trillion ft3) in the Americas by major country and 2012 world rank (2003 2012) severity of the
economic crisis in
Region 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Brazil has already
Argentina 0 0 0 0 0 0.02 0.03 0.06 0.02 0.2 had an impact on
its appetite for LNG
US 0.5 0.7 0.6 0.6 0.8 0.4 0.5 0.4 0.4 0.2 imports, which has
largely been driven
Mexico 0 0 0 0.05 0.1 0.1 0.1 0.2 0.1 0.2
by Petrobras to
Chile 0 0 0 0 0 0 0.02 0.1 0.1 0.1 date. In 2015, the
company purchased
Total Americas 0.5 0.7 0.7 0.7 0.9 0.5 0.7 1.0 0.8 0.9 approximately 80
cargoes of LNG, and is
Total World 5.9 6.4 6.8 7.6 8.3 8 8.6 10.5 11.7 11.6
forecast to purchase
Source: US Energy Information Administration; BP; International Energy Agency approximately 50
cargoes this year.7

12 LNGINDUSTRY AUGUST 2016


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Untitled-3 1 16/12/2015 15:09
US$10 billion in energy
infrastructure projects,
including eight natural
gas pipelines (with a
total combined length
of over 2385 km) to
import additional
natural gas from the
US.11 Earlier this year,
Oneok Partners, a US
midstream group, and
Fermaca, a Mexican
Figure 1. US natural gas pipeline exports to Mexico (1975 2015). Source: US Energy Information gas infrastructure
Administration. company, completed
construction on the
first phase of a pipeline
Chile project linking producing natural gas plays in west Texas, US, to
In addition to the mutually beneficial, cross-border natural gas Northern Mexico, with a second phase of the project currently
sales with Argentina, other aspects of the Chilean LNG sector under construction.
have continued to experience growth. Chile has been an active There are forecasts that pipeline capacity between the US and
participant in the global LNG market, with two existing onshore Mexico will more than double to approximately 14.7 billion ft3/d
LNG regasification terminals: Quintero LNG, near the capital city by 2019, outpacing current anticipated imports and potentially
of Santiago, and the GNL Mejillones in the north of Chile, near the placing Mexico as Texass largest energy trading partner.12
countrys industrial mining centre. This year, both Quintero LNG Ultimately, increased natural gas pipeline imports from the US
and Mejillones LNG are seeking approval to expand regasification could render Mexicos LNG infrastructure obsolete.
capabilities. In addition, other new LNG regasification projects
are in development, including the proposed Peno Lirquen LNG Panama
terminal, where an FSRU would be moored in Concepcion Bay in During the past few years, the discussion of LNG and
south-central Chile.8 Panama centred around the impact that the much anticipated
Looking ahead, as the price of copper recovers globally Panama Canal expansion would have on the global LNG trade,
(speculation puts the average price for copper at as much as as it would allow certain sized LNG tankers to take advantage
US$6330/t after 2018), it is likely that Chilean demand for LNG of Panamas path between the seas. In June 2016, the new
could also rise. Chile is the largest producer of copper in the world locks were inaugurated and expectations continue to be that the
and, as global demand for copper increases (driven largely by new waterway will have a significant impact on the global LNG
Chinese demand), additional LNG will be needed to fuel power trade. In addition to the Panama Canal expansion, in May 2016,
plants that provide electricity to Chiles copper mines.9 AES Corp. announced that it had broken ground on its integrated
LNG import terminal and power plant project in Colon, Panama.
Colombia During the initial year of service in 2018, the LNG regasification
A newcomer to the discussion of Latin American LNG, Colombia infrastructure will employ an FSRU and, in 2019, an onshore
is slated to become the 36th LNG-importing country later this storage tank is expected to become operational.13 It is expected
year when it commissions an FSRU-based regasification facility that this terminal will not only serve the Panamanian market, but
on the Atlantic coast of the country near Cartagena. Hegh LNG that it will emerge as a regional energy hub that can serve the
will supply the FSRU and Mitsui & Co. has been selected to broader Central American region and the Caribbean.
deliver Colombias first LNG cargo to the gas storage complex
Sociedad Portuaria El Cayao SA ESP.10 Colombia, as with other Uruguay
Latin American energy markets, intends to use these LNG imports Uruguays LNG import terminal project experienced a difficult
as a feedstock for a consortium of gas-fired power generators. 2015. The projects main sub-contractor, Grupo OAS, entered
However, the expected import demand will be limited to a range into bankruptcy as a result of Brazils corruption scandal, whilst
of 6 12 cargoes per year.10 the Uruguayan government terminated its agreement with
the joint venture (JV) consortium of Engie and Marubeni for
Mexico the development of the terminal. Nonetheless, the project
The dominant theme within Mexico during the past couple of appeared to regain its footing in May 2016 with three important
years has been broad-sweeping energy reforms in its oil and developments. Firstly, an agreement was announced with
gas and electricity sectors. For the LNG sector, one of the main Mitsui O.S.K. Lines Ltd (MOL) for the intention of Uruguays
consequences has been the increased focus on cross-border state-owned JV of Gas Sayago to conclude a long-term time
pipeline development to allow for greater natural gas flows from charter of the FSRU that was already being purpose-built for the
the US. As shown in Figure 1, Mexicos imports of natural gas project.14 Secondly, Gas Sayago launched another tender for the
from the US have been steadily increasing y/y. In response to completion of the remaining infrastructure required for the project.
increased demand for electricity across Mexico, dozens of new Thirdly, Uruguays President and Argentinas Energy Minister
natural gas fired power plants are being constructed across the signed a preliminary agreement through which Argentina would
country. To fuel these new power plants, in 2015, the Comision purchase the terminals regasified LNG output that exceeds
Federal de Electricidad began the bidding process for nearly Uruguays requirements.

14 LNGINDUSTRY AUGUST 2016


Electricity-Assets.html; BETHEL, G., Examining the
Conclusion Potential Impact of Brazils Woes on Latin America,
While many economic indicators might forecast rough waters International Banker, (31 March 2016), http://
ahead for the LNG industry in Latin America, and it is still unclear to
internationalbanker.com/banking/examining-potential-
impact-brazils-woes-latin-america/.
what extent Brazils recession will impact the region, the near-term 7. VALLE, S., et al, Petrobras Said to Buy Chenieres First U.S.
effect has been limited on the development of LNG infrastructure Shale Gas Export, Bloomberg, (23 February 2016), http://
in the hemisphere. Looking ahead to the long-term is more www.bloomberg.com/news/articles/2016-02-23/petrobras-said-
complicated, particularly as global LNG markets will recalibrate to to-buy-cheniere-s-first-u-s-shale-gas-export.

account for North American LNG export facilities coming online. 8. ROBINSON, J., Chiles Biobiogenera to import US LNG at
landed price of $11 $12/MMBtu, Platts, (5 August 2015),
Ultimately, it is likely that Latin Americas appetite and related http://www.platts.com/latest-news/natural-gas/houston/chiles-
infrastructure for LNG will continue to grow, albeit at a slower biobiogenera-to-import-us-lng-at-landed-21916221.
pace than recently enjoyed by the region. 9. KEENAN, R., Copper Price May Gain by a Third on China
Demand, Chile says, Bloomberg, (17 May 2016), http://www.
References bloomberg.com/news/articles/2016-05-17/copper-price-may-
gain-by-a-third-on-china-demand-chile-says.
1. STOBBART, L., Cheniere preparing to load second LNG 10. DOAN, L., Mitsui to deliver Colombias first LNG shipment,
cargo from Sabine Pass: sources, Platts, (11 March 2016), Bloomberg, (30 May 2016), http://www.japantimes.co.jp/
http://www.platts.com/latest-news/natural-gas/london/ news/2016/05/30/business/corporate-business/mitsui-to-
cheniere-preparing-to-load-second-lng-cargo-from-21082830. deliver-colombias-first-lng-shipment/#.V1GyPP72aUk.
2. DUBE, R., Oil & Gas Intelligence Series: LNG Continues 11. PASSUT, C., Mexicos $10B in Infrastructure Projects
Expansion in Latin America, Business News Americas; The Includes NatGas Pipeline Under GOM, Natural Gas
International Group of Liquefied Natural Gas Importers Intelligence, (24 June 2015), http://www.naturalgasintel.
2016 Status Report. com/articles/102760-mexicos-10b-in-infrastructure-projects-
3. CRITCHLEY, A., LatAm must expand regasification includes-natgas-pipeline-under-gom.
capacity, Business News Americas, (4 May 2016), http:// 12. MEYER, G. and WEBBER, J., US shale gas producers bet
subscriber.bnamericas.com/Subscriber/en/news/oilandgas/ Mexico is next bonanza, Financial Times, (25 April 2016),
latam-must-expand-regasification-capacity/. http://www.ft.com/cms/s/0/427ad672-08c8-11e6-b6d3-
4. Chile to start gas exports to Argentina next week, 746f8e9cdd33.html#axzz48q3bCXBe.
Argus Media, (6 May 2016), http://www.argusmedia.com/ 13. BAKER, A., AES to become CentAm-Caribbeans largest
news/article/?id=1236066. LNG provider, Business News Americas, (9 May 2016),
5. The Economist Explains Michel Temers Plans for Brazil, http://subscriber.bnamericas.com/Subscriber/en/news/
The Economist, (12 May 2016), http://www.economist.com/ oilandgas/aes-to-become-centam-caribbeans-largest-lng-
blogs/economist-explains/2016/05/economist-explains-9?zid=3 provider1.
05&ah=417bd5664dc76da5d98af4f7a640fd8a. 14. BAKER, A., Uruguay launches LNG terminal construction
6. BURGESS, J., Brazils Petrobras To Sell All Electricity tender, Business News Americas, (9 May 2016), http://
Assets, (16 February 2016), http://oilprice.com/Latest- subscriber.bnamericas.com/en/news/oilandgas/uruguay-
Energy-News/World-News/Brazils-Petrobras-To-Sell-All- launches-lng-terminal-construction-tender/.

ADVANCING
SAFETY
DRIVEN BY
INNOVATION
Visit ABS at SMM 2016
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Strategic design
considerations for LNG
TERMINALS

rt,
hawn Hoffato
r tn e y a n d S rs to
le Wil li a m s , Dan McCaA, outline important fa c
Da h Corp., USLNG terminals.
Black & Veaetc n designing
consider wh

A
t first glance, developing an LNG import terminal might seem like a
straightforward task. In reality, however, many subtle factors enter into
project decisions.
Black & Veatchs most recent experience in LNG import terminals dates from
2001, when it prepared the design and permitting for an import terminal in
Hackberry, Louisiana, US. Since then, the company has performed work
with scope ranging from desktop studies, to design and permitting, to
full engineering, procurement and construction (EPC) responsibility
or terminals in the Americas, Europe, Africa and Asia.

17
To design a safe, efficient and cost-effective terminal, driven by the size of the LNG carriers that will discharge
the following factors require careful attention during the cargoes at the terminal. In addition, factors such as
development and design phases of the project: weather delays and tide changes must be considered when
Terminal siting and environmental factors. determining the amount of storage required between ship
arrivals. Although larger tanks have been constructed, a
Storage tank size and requirements.
typical industry tank size is 150 000 180 000 m3. When
Marine considerations. one considers that carriers of over 260 000 m3 are in the
Vaporisation technology selection. fleet, it is easy to see that multiple tanks are often required
for a terminal.
Opportunities for integration with adjacent industrial In addition to ship size, another important design
facilities. parameter is how often ships will arrive and the expected
It is important to note that these factors are not entirely range of LNG send-out rates. As weather plays an
independent of one another. For example, both LNG storage important part in the ability of a ship to dock and
capacity and marine design are influenced by ship size, load/unload LNG, a clear understanding and study of
coastal and shipping constraints and terminal throughput. expected weather and marine conditions is a must. The
Additionally, LNG import terminals can be land-based or general practice in the industry is that before an LNG carrier
floating, with a number of floating terminals already having is connected at the berth and begins discharging its cargo,
been deployed around the world. In some cases, the floating the terminal must have sufficient capacity available to
LNG (FLNG) application was selected to reduce the overall store the entire cargo.
project schedule time to start-up, while, in other situations, Another factor affecting storage cost is the type of tank
this application was used to mitigate siting constraints. design. Generally, large LNG tanks are constructed
according to one of three design types: single, double or
Terminal siting and full containment. The choice of tank design is not only
environmental factors based on tank erection cost, but also on safety and
Although marine and storage requirements need to be location. Typically, single containment tanks have a single
considered in the selection of the terminal site, perhaps metal wall capable of storing cryogenic LNG and a
more important are the potential safety and environmental secondary containment provided by an earthen berm. Full
aspects of a particular site. Many jurisdictions have detailed containment tanks are constructed with a metal LNG
requirements for siting an LNG facility. These requirements storage container surrounded by a full concrete structure
can include regulations covering everything from fish that provides the secondary containment. Double
habitat, air emissions and surrounding properties to the containment tanks substitute a concrete outer structure for
potential impact of an incident. the earthen berm, but do not provide secondary
One of the most important criterion to consider for siting containment for spilled LNG vapour as there is no top on
is how the plant will get the necessary seawater into and the secondary containment. Few double containment tanks
out of the facility. The required frequency and size of LNG are being constructed because they have no significant
carriers can heavily influence site selection. Environmental advantage over other designs and have higher relative
impacts arising from shipping and the LNG vaporisation costs. Due to the bermed containment area, single
technology often determine the viability of a prospective containment tanks require a greater plot area than full
site and the designs of the facility. containment tanks. However, full containment tanks have
Although originally developed for use in the US, many higher costs and longer erection schedules than single
jurisdictions around the world use National Fire Protection containment tanks, which must be considered in the
Association (NFPA) 59A: Standard for the Production, overall designs and economics of the facility.
Storage, and Handling of Liquefied Natural Gas (LNG), as a
reference when establishing LNG terminals. In addition to Marine considerations
these widely recognised standards, numerous local codes Terminal designers must consider marine factors, such
are typically followed for the design and operation of LNG as expected ship size (length, draft, etc.), channel traffic,
terminals. dredging required (both initial and maintenance) and port
Factors such as the impact on the local community and restrictions. In addition, parameters such as bathymetry,
adjacent industrial areas often dictate the suitability of a space for ship manoeuvering, tug operation, water depth,
potential terminal site. Analyses of potential vapour tide variations and wave action are key. It is critical that
dispersion and thermal radiation impacts have become these parameters are researched and the project approach
much more detailed than just a few years ago. Numerical and basis are documented early in the design process. It is
techniques, such as computational fluid dynamics (CFD) also important that a dialogue is established with the local
modelling, and the use of approved calculation protocols port authority and pilots association.
(along with risk assessment studies), are part of modern Once ship size, berthing requirements and mooring
terminal siting considerations. requirements are known, the mooring structure, loading
arms, piping and equipment must be considered. In
Storage tanks addition, the safety protocols that will be observed during
As storage requirements are often the largest single part LNG transfers must be documented as part of the design
of the terminal capital investment, they are often the focus basis. Employing a marine contractor with both LNG and
of potential cost savings. However, storage cost is largely local experience is vital.

18 LNGINDUSTRY AUGUST 2016


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Vaporisation technology considerations surrounding the use of large volumes of
selection seawater and potential environmental impacts to sea life
Many different vaporisation technologies are in use in from cooling the water used in vaporisation. In addition, if
LNG import terminals around the globe. These can be the distance to the open sea is considerable, expensive
categorised into a few classifications depending on the seawater pumping and piping systems can be required.
medium used to warm the LNG, including the following: Furthermore, if the mineral content of the water in the
Open rack vaporisers: water falling over LNG tubes terminal location is too high, corrosion can be an issue.
(Figure 1). Seawater to freshwater exchange can be utilised, but this
process adds cost. There are still locations where the use
Submerged combustion vaporisers: LNG heated in a
of open rack vaporisers is a good choice, but these
liquid bath, typically fuelled by natural gas (Figure 2).
facilities are less common than they once were.
Heat exchange vaporisers: via shell and tube Submerged combustion vaporisers burn fuel to
exchange and an external fluid heating loop. generate the heat needed to vaporise the LNG. In
locations where the use of seawater is restricted, these
At one time, most LNG facilities around the world vaporisers are common. For example, many of the older
used open rack vaporisation. This style of vaporiser uses LNG facilities in Europe and North America use this style
seawater distributed over finned tubes to vaporise the of vaporiser. Although these vaporisers are efficient, they
LNG. Operating expenses for open rack vaporisers include still consume fuel and have air emissions. In addition, the
electricity for pumping water and any needed filtering or combustion air blowers that are part of these systems
treating of the inlet seawater. This type of vaporiser has consume electrical power. The operating cost for a
become less common in new designs because of modest-sized LNG import terminal using submerged
combustion vaporisers can run into the tens of millions of
US Dollars per year. As they are relatively compact and
can be put into operation quickly, submerged combustion
vaporisers are at least a part of the vaporisation system in
many new LNG import terminals.
Heat exchange vaporisers are used in an attempt to
overcome the limitations of other vaporiser types.
Generally, these units are large heat exchangers that
exchange LNG to be vaporised directly with either warm
water or ambient air. Due to the potential for freezing, the
design of these exchangers is specialised. For example, in
the case of a water heated shell and tube exchanger, the
water side of the exchanger could freeze and burst if a
tube ruptures. Often, the water has added glycol to
minimise the impact of the cold LNG, but even that can
freeze. In warmer climates, the water used to vaporise the
LNG is heated using the ambient air, but, in more extreme
climates, some other heat source is often required. Air
Figure 1. Open rack vaporisation. heated units may have ice build-up from the moisture in
the air. Often, multiple parallel units must be
installed to allow some exchangers to thaw while
others are in service. The main advantage of heat
exchange vaporisers is that the source of heat is
essentially free and that little energy is needed
for operation. However, these vaporisers are not
without their environmental impacts. The use of
toxic glycols and discharge of condensed water
can affect a design.

Integration
As can be seen from the discussion of LNG
vaporisers, some heat source is often needed
to vaporise the LNG. Therefore, LNG import
terminals are often candidates for integration
with adjoining facilities. Black & Veatch has
developed designs for integration with power
plants, chemical plants and other industrial
partners. For example, in a power plant, a large
portion of the energy used to generate steam
is ultimately rejected in a steam condenser.
Figure 2. Submerged combustion vaporisation. The power produced is a function of the outlet

20 LNGINDUSTRY AUGUST 2016


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pressure and temperature of the steam turbine condenser. In fact, LNG vaporisation cold can be used in a
This condenser is limited by the temperature of the number of ways, including cooling for chemical plants,
cooling system. By exchanging heat with an LNG import mineral processing and refrigerated storage.
terminal, a much cooler condenser outlet can be achieved
and more power can be produced for a given amount of Experience
fuel. Because many LNG import terminals are co-located Black & Veatch has broad experience with the design and
with power plants, this type of integration can be a construction of LNG import terminals. The companys
significant boost to project economics, both in reduced experience includes many of the systems discussed in this
energy consumption for the LNG terminal and increased article:
energy output for the power plant. The Peuelas facility (Figure 3) for EcoElectrica
in Puerto Rico. Black & Veatch was one of many
contractors involved in the design and construction
of this facility. The power plant has the ability to
generate electricity using liquefied petroleum gas
(LPG), LNG and other fuels. It is heat integrated
with the LNG import facility and very flexible. It is
one of few facilities with a US permit to use double
containment LNG storage.
The successful construction of the Energia Costa Azul
terminal (Figure 4) in Baja California, Mexico. This
facility includes 160 000 m full containment LNG
storage tanks and seawater open rack vaporisers
and is completely self-sufficient in terms of power
generation and freshwater production. Vaporised
LNG can be delivered into area gas pipelines, and the
facility has the ability to both unload and load LNG
carriers.
Complete design packages for US Federal
Figure 3. The Peuelas terminal and power station in
Energy Regulatory Commission (FERC) facilities.
Puerto Rico.
Black & Veatch has provided detailed design packages
for permitting for more than 10 North American LNG
import terminals for submissions to FERC, including
Cheniere Energys Sabine Pass terminal, the Sempra
Cameron facility at Hackberry, Louisiana, US, and the
Occidental Chemical Corp. (OxyChem) LNG terminal
in Ingleside, Texas, US. For the OxyChem LNG
terminal, Black & Veatch integrated the LNG terminal
into the existing facility for the supply of all heat for
the plant vaporisation.
In the Corpus Christi area, Texas, Black & Veatch was
involved in early permitting work for the Cheniere
terminal, which included heat integration with
a neighbouring alumina plant and a completely
integrated design for a chemical complex. That
project included use of cooling tower water from
multiple chemical manufacturing operations and a
cogeneration facility on the site for LNG vaporisation.
Black & Veatch is currently the contractor for
construction of the world scale Ennore LNG terminal
in Tamil Nadu on the east coast of India.
There are many important decisions that go into the
overall siting and design of a LNG terminal and all of
these aspects, including environmental, storage, marine
requirements and technology selection, play an important
part in the overall success of the project. A thorough
design development (FEED) period is key to ensuring the
many critical details and decisions are reviewed and
Figure 4. The Energia Costa Azul terminal in Baja California, considered to avoid delays and unexpected costs later in
Mexico. the project.

22 LNGINDUSTRY AUGUST 2016


STRIVING FOR
STRONGER
RESULTSJohn Jeffers,
SNC-Lavalin,
United Arab Emirates,
explains how to
achieve predictable
outcomes for modular
construction on LNG
projects.

I
n these challenging times of ever lower spot prices for LNG Modular construction allows owner companies to work
into Asian markets, the demands on the LNG sector to around the challenges associated with the high cost or lack of
optimise cost, while maintaining quality and ensuring the skilled construction labour in remote frontier locations or space
highest levels of health, safety and environment (HSE) delivery, constraints pertaining to the site. In addition, construction can
have never been greater. begin as scheduled if work or environmental permits required at
Independent and empirical studies point out that the sector the project site are still in progress or become delayed.
record in executing major oil and gas projects is far from palatable.1 However, even though the modular approach is well known
Approximately 64% exceed their control budget and over 70% and commonly adopted for LNG, it is not always a great success
experience schedule delays. Therefore, it is necessary for the LNG story, with many projects experiencing great difficulties in this
sector to examine some of the underlying reasons for this area. As such, there are several important lessons for the sector to
disappointing failure in order to achieve predictable outcomes on learn from previous projects.
investments. This article identifies the ways in which risks and uncertainties
Business as usual is not an option going forward. Therefore, it surrounding the modular construction approach for the LNG sector
is imperative that innovative and robust project delivery options can be minimised, based on independent reviews of different
are identified and implemented to enhance all aspects of the types of mega-projects. It also highlights major challenges, risks
project delivery. One option often used for LNG is the off-site and opportunities posed, as well as lessons learned from an
fabrication of pre-assembled units and modules. This is especially analysis of operators and contractors.
so for the global LNG sector, whereby liquefaction export
terminals are often in remote locations with limited access to the Modular construction yards
highly skilled labour necessary to construct and commission these The decision to modularise is a key project execution decision
facilities. and should be made as early in the project lifecycle as possible,

23
the yard at the outset to avoid having to remove equipment to
reduce the weight for lifting.
Another important aspect in the decision making process is
the quality assurance record to date. Background checks with
other operators regarding their experience of the fabrication yard
should be carried out. These checks can determine criteria,
including previous productivity, work load and capacity.
The quality of the modules and the cleanliness of the
components are paramount. Any re-work found necessary on site
can and will be costly and will lead to programme delays. Also,
robust management of quality and record keeping is required as
history is littered with examples of inefficient and costly data
management and document control. Recent software
developments can help to ensure that such efficient document
management is achieved.
Following this, LNG operators will need to agree on a realistic
schedule and pragmatic sail-away dates. The pressure on project
directors to accept a critical path that suits investors rather than
having a robust fabrication schedule is not uncommon. This leads
either to the modules being loaded and shipped with far too much
carry-over work for completion at the job site, or lateness. In either
event, the impact on schedule and costs can be dramatic.
During the fabrication design, errors or changes may occur
and it is imperative that these are resolved in a timely and efficient
manner. Strong leadership is required to achieve this. Best
practices in the fabrication phase include incentivising the
fabricator to achieve predictable outcomes for quality and
schedule, pre-commissioning and system testing, as well as
Figure 1. Assembly of LNG refining facility. maximising the yard as far as is reasonably practicable. Work
packs should aim to remove or considerably limit the dressing
required at the final location.
preferably during the pre-front end engineering and design On several recent LNG projects, carry-over work has been
(pre-FEED) phase to allow the design to progress efficiently. significant, as have the costs associated with correcting this
There are a number of key factors that influence the decision condition. All of this additional work prolongs the schedule and
to modularise or to use traditional stick build techniques. The the time-related costs associated with a longer programme.
following are some of the more influential factors:
Improved HSE performance as a result of moving field Project execution planning is
construction activity into a controlled environment. key
To be successful, modular projects for the LNG sector require
The plant lends itself to a modularised outcome, with suitably
significantly better project practices, particularly in regards to
sized modules that are in accordance with the transport and
project execution planning. The best projects select the modular
logistics constraints.
strategy when engineering is less than 7% complete and has
Availability and suitability of transport and logistics routes. consistently better measures of front end loading (FEL) at
Availability, suitability and cost of site construction labour. authorisation. The best projects also use constructability reviews
more often, and implement better project controls. There is a need
Availability and suitability of fabrication facilities. for a master overarching schedule and a detailed level four in the
Availability and capacity of site trailers and craneage. fabrication yard. The fabrication team need to fully appreciate
the ramifications of their actions and their impact on the master
It is important that an engineering house or, better still, a schedule. At the same time, with better planning, the chosen
specialist modular solution provider is selected to ensure that the constructor should be invited to participate in early constructability
engineering is focused on an optimally engineered modular reviews and visit the module yards to gain a greater appreciation
solution. A common mistake is to engineer the plant and to try to of the challenges of installing them and hooking them up.
modularise it later, which is inefficient and does not generally Attention to detail is important, as even the wrong sized cable
result in the best outcome. The selection of the fabrication yard trays on the module can lead to the need for site retrofit and
and any past experiences or performances should also be unnecessary expense in the field.
carefully considered. Planned sail-away dates (realistic ones) need to be achieved
A final decision should only be made against a weighted and modules that are 100% complete need to be loaded.
scoring system, such as the Kepner-Tregoe (KT) analysis to give a
balanced view. Maximum weight for lifting on the final site must Documentation and management
be adhered to with no weight creep on the modules, which of change
would cause an increase in project costs. Instead, companies must The project must adopt a single integration document
prepare to deploy a strong and experienced leadership team into management system. This must include the user requirements

24 LNGINDUSTRY AUGUST 2016


specification, which will ensure that designs are correct in
the initial stages. Companies must employ a no-change
philosophy, in which any change requests are subject to
strong scrutiny at the business level.
To improve efficiency in the LNG modular environment,
there is no place for preferential engineering. When change
is totally unavoidable, it must be managed in detail,

All auxiliary equipment out of one hand ...


recorded and documented. This will ensure that the
ramification of the change is understood across all Air-cooled
disciplines. Procurement, where possible, should be heat
repeated in order to maintain consistency with the same exchanger
equipment from the same vendor or manufacturer. This (Fin Fan)
saves time in the engineering phase where model
co-ordinates are confirmed early. Companies must expedite
equipment for modules to ensure that the schedule is
adhered to and revisions are passed down the line to all
stakeholders. Effective document management and Oil
maintenance of quality records is critical to the project. consoles

Summary
In conclusion, strong leadership and decision-making skills
are required during all phases of the project, especially the
fabrication period. Management must set clear, unambiguous Enhanced
goals for the team and ensure that all employees are surface
committed to achieving them. Companies must deploy element
commissioning teams into the FEED phase and maintain a cooler
presence throughout the duration of the project. A common
question that one should ask is how the plant is to be
commissioned; therefore, what is the sequence of the build
and what utilities are needed to achieve this? Surface
Collaboration is fundamental to achieving success and a condenser
strong culture of together we achieve more should be systems
embraced. Qualitative and quantitative risk assessment and
risk management on the project is mandatory and
constructability reviews should be held frequently with the
appropriate stakeholders present. Whenever possible, this Shell and
should include the actual managers who will be responsible tube
for overseeing the fit out on site. The use of 3D enhanced
views to rendered mini models for the installation of difficult
equipment should be considered.
If companies ensure that the schedule is achievable and
the sail away date can be met, they will see out a successful
Dry seal
project. If not, the LNG sector has many examples where this gas panel
does not bode well for the overall investment.
This article concludes that if the proposed execution
methodology of modular construction for LNG investments
includes the application of total quality engineering principles,
then HSE outcomes can be improved, stakeholder value can
be maximised and proposed development costs can be
significantly lowered for major newbuilds.
Finned
Improved, predicable outcomes of schedule and cost will
tubes
be achieved, thus allowing a greater level of confidence in the
sanctioning of projects at the final investment decision (FID)
stage.
If the industry is to move forward to meet the anticipated
growing demand for LNG post-2020, then the success of
these future projects relies on the implementation of these
recommendations.

Reference
1. Spotlight on oil and gas megaprojects, Ernst & Young,
(2014).

www.oeltechnik.com
www.rtscorporation.com
Steve Martin,
Elliott Group, UK, and
the Linde StarLNG team,
Germany, look at standard
compression packages for
mid scale LNG plants.

Meet in the
M

26
MIDDLE
MIDDLE COVER
STORY

S
ince the first baseload LNG plants came
online in the 1960s, plants have grown
steadily larger thanks to improvements in
liquefaction processes, advances in compressor
technology and drivers, and economies of
scale. World scale, multi-train plants producing
in excess of 10 million tpy are in operation,
and more are in the works. This seemingly
inexorable drive toward ever larger plants has
been blunted in recent years by several factors,
including the enormous capital expenses of a
world scale LNG plant, the persistently high
costs of engineering, materials and construction,
and the consequent extended decision making.

27
be profitably or quickly served by large baseload
plants.
The Linde Groups StarLNG plants operate
over a wide feed gas envelope, and are scalable
across liquefaction capacities from 100 to 3000 tpd.
They include modularised pretreatment and
process units, and offer options for heavy
hydrocarbon or nitrogen removal. The plants
process toolbox covers approximately 90% of
real life operating conditions (Figure 1).
These plants have safety levels equal to those
of world scale LNG plants. The capital cost of the
plants is, however, greatly reduced. Pre-engineered
documents include a 3D CAD model for a fully
modularised plant. This ensures the shortest
Figure 1. Linde mid scale LNG plant with 900 tpd liquefaction capacity
possible execution schedule. Standardised,
located in Stavanger, Norway, on stream since 2010.
modular StarLNG plants can help to provide a high
level of safety, efficiency and reliability, with rapid
execution.

Standardised modular
compression trains
The liquefaction cycle in a StarLNG plant uses Lindes efficient
LIMUM mixed refrigerant (MR) process, which uses either
a brazed aluminium plate-fin heat exchanger (PFHE) or a
coil-wound heat exchanger (CWHE), depending on plant
capacity and operational requirements (Figure 2).
In conjunction with the main cryogenic heat exchanger,
the refrigerant compression train forms the heart of a
liquefaction plant. The utilisation of a standardised, modular
refrigerant compression train in StarLNG plants is a
Figure 2. Linde LIMUM3 liquefaction process uses its robust fundamental point of difference with traditional baseload
and easy to operate coil-wound heat exchanger (CWHE). plants and other approaches to mid scale LNG. Developing a
standard refrigeration compression solution for the plant
concept required addressing several challenges. Increasingly
After a final investment decision (FID) is taken, execution larger compressor frames are required to meet the power
can require several years. Although natural gas is displacing requirements and flowrates of plants ranging in capacity from
other fossil fuels because of its lower CO2 emissions, stricter 100 to 3000 tpd. Optimally, the form factor of a single
maritime emissions regulations, and the environmental baseplate module would suffice in any installation, regardless
implications of transporting LNG from remote export of the plant capacity and the size of the compressor required.
locations to the point of use also increasingly figure in the A common baseplate dictates the position of the compressor,
planning equation for new baseload plants. its bearing pedestals, and the placement of connections and
New process technologies and growing interest in auxiliaries, including gearbox and lubrication, seal and control
merchant LNG applications (e.g. bunkering, fleet transport systems.
fuelling, and on site or district power generation) are stoking Early in 2016, Elliott Group was selected to supply the
interest in the benefits of small and mid scale commercial centrifugal compressors for the refrigerant cycle in Lindes
LNG projects. Mid scale LNG plants require significantly less plants, after the compressors met Lindes rigorous
capital investment than large baseload facilities. They can be performance, standardisation, and delivery requirements.
constructed in modular fashion using standardised designs Elliott offers a scalable line of centrifugal compressors in
and equipment to speed up construction and bring the facility 15 frame sizes designated from 10 M and 10 MB up through
online quickly, in as little as two years from the FID, and three 110 M. The numerical designation correlates to the diameter of
or four years faster than world scale plants. This faster time to the diffuser in inches. The M line casings are horizontally split,
market correlates to significant additional revenue generation and the MB casings are vertically split, barrel units. The
(and possibly a quicker return on investment) for mid scale compressors are widely used in hydrocarbon and chemical
LNG developers. Small and mid scale LNG plants have processing, especially for refrigeration service in ethylene and
smaller footprints, so they can often be situated in proximity LNG. Very large Elliott compressors at the upper end of the
to the point of use. Those that are sited near commercial or scale are among the largest compressors in hydrocarbon
transportation centres can minimise development expenses service today (Figure 3).
by taking advantage of existing industrial infrastructure, and The compression solution for the StarLNG plants is
can reduce the costs and environmental impact of based on six frame sizes ranging from 29 MB to 70 MB.
transportation. Smaller liquefaction operations can also be These frames can be configured as 14 standard compressor
used to exploit smaller stranded gas resources that cannot train options with fixed or variable speed and optimised

28 LNGINDUSTRY AUGUST 2016


rotor, covering the entire operating window of Lindes
LIMUM process. A key component of Elliotts standard
compression solution is the proven efficiency in refrigeration
applications of its impeller family across the LIMUM process
operating range.
The company has carefully optimised the standardisation
of its refrigerant compressor train options. All of the options
share a common baseplate design, and the bearing span of
the compressor rotors is constant for every option. This
allows the compressor casings to be consistently located on
the baseplate and for the nozzles to be consistently located
for fast, convenient connection to pre-engineered intake and
discharge piping. Five gear box options, depending upon gear
ratio and power, are available for the motor-driven trains. The
gear box is in a fixed location on the baseplate, as are the five
lubrication system options that match the gear box oil flow
requirements. The baseplate contains the oil reservoir. The
lubrication systems will be designed and manufactured by
Elliott Packaging Solutions in Pennsylvania, US. Two seal gas
panels match the requirements of all of the compressor
options. One common unit control panel design requires only
programming changes to manage all of the variable speed
and fixed speed compressor options. The equipment
documentation is also standardised. Less than one-third of
the documents for any of the compression train options are
unique to a specific project, and half of those documents are
test reports.

Geographic coverage
Rapid execution and timely delivery are critical considerations
for the success of small and mid scale LNG projects.
Figure 3. Elliott Groups scalable line of highly reliable barrel
compressors covers a broad range of refrigeration applications.
Elliott Group operates major manufacturing and test
facilities in the US and Japan that supply large, efficient
refrigerant compression trains for baseload LNG plants
throughout the world. The factories are also well situated
to supply equipment for mid scale LNG projects. One plant
in Pennsylvania is in close proximity to the shale reserves
that have contributed to increased natural gas production in
North America, while another plant in Sodegaura, Japan, is
convenient to the developing markets for small and mid scale
LNG in China and Southeast Asia. Both factories are equipped
with modern, 5-axis CNC machining centres and with test
stands capable of conducting full-load tests of multi-body
compression trains complete with all auxiliaries and electric
motor or turbine drivers.
The companys global service network adds an additional
dimension to its partnership with Linde in mid scale LNG. The Figure 4. Elliotts global service network provides specialised
most successful efforts to standardise and modularise the expertise in the installation, maintenance, and repair of
core processes in a mid scale LNG plant always bump up turbomachinery from any manufacturer.
against the inherent complexity of the refrigerant
compressors. The extremes of temperature and pressure that
characterise the operating parameters of refrigerant Conclusion
compressors demand specialised knowledge and training that The accelerating emergence of LNG as a central component
is best provided by original equipment manufacturers (OEMs). of the worlds energy mix offers many new opportunities
The companys field service engineers and machinery for small and mid scale LNG projects. As investors and
specialists have experience with the installation and start-up, operators evaluate these opportunities, they must carefully
maintenance, repair, and overhaul of complex equipment weigh the factors that will determine a ventures success.
from all major turbomachinery OEMs. Elliott also operates The standardised scalable design of Lindes StarLNG plants
full-service repair centres in North and South America, Europe, together with Elliott Groups scalable refrigerant compressor
the Middle East and Asia, including new facilities recently architecture enable small and mid scale LNG plants to
commissioned in China and India, and another scheduled to come online quickly and with lower cost of execution than
open in Saudi Arabia in 2016 (Figure 4). traditional one-off projects.

AUGUST 2016 LNGINDUSTRY 29


Tor-Ivar Guttulsrd,
ABS, USA, explains why
developing the floating
LNG sector is still
important, despite
the current low
oil and gas price
environment.

FLNG:
a concept comes of age

30
Figure 1. PFLNG SATU was christened in
early March 2016, marking another milestone
for Petronas in the global LNG business arena.
ABS was selected to class the second FLNG
vessel (image courtesy of Petronas).

W
ith the offshore energy market continuing to contend with low oil and
gas prices, many projects have been put on hold. However, despite
the downturn, work is continuing on a number of floating LNG (FLNG)
projects. While the current market works against these plans, the long-term
potential of FLNG continues to make it a focus for companies that see enormous
potential in unlocking stranded reserves and bringing clean-burning gas to
market.
In a recent report entitled Floating Liquefied Natural Gas (FLNG) Market: 2016
2026: CAPEX and Capacity Forecasts for LNG FPSOs and FSRUs, analysts at
Visiongain forecast that the market will see US$5.06 billion in CAPEX this year for
FLNG units alone.1
Several FLNG projects have been delayed or cancelled in recent months, and
a sustained environment of low oil and gas prices could impact others.

31
Nonetheless, despite these challenges, players in this arena approximately 50 miles offshore Louisiana making it the
continue to make strides toward realising multiple innovative first offshore FLNG facility in the US.
facilities. Elsewhere in North America, several proposed Canadian
Several of the delayed projects are embracing solutions West Coast projects also are contemplating floating
for the most cost-efficient development possible, potentially solutions. It will be interesting to see how well these
engaging their supply chain to contribute to lower cost proposals progress and which ones actually come to fruition.
solutions at a time when engineering and construction
company backlogs are typically shrinking. Projects in progress
A major FLNG project that is progressing is Shells Prelude.
Partnering in innovation Measuring 488 m long x 74 m wide and 44 m deep, and
While classification societies do not own, design or operate weighing approximately 600 000 t, Prelude will produce
floating assets, they play a critical role as a verifier in the at least 5.3 million tpy of liquids: 3.6 million tpy of LNG;
process of developing and building the units. 1.3 million tpy of condensate (equivalent to 35 000 bpd); and
As a third-party verification agency, ABS is often involved 0.4 million tpy of LPG.
at the front end of concept development when designers and Gas will be transported from the reservoir via dual
developers wish to earn Approval in Principle (AIP) for their insulated production flowlines and flexible risers to the
designs. The organisations role is to provide a review of new vessel, where impurities, such as water, mercury and CO2, will
or novel design concepts. AIP is granted in acknowledgement be removed. The gas will be liquefied and stored onboard,
that a proposed concept or design complies with the intent of awaiting LNG carriers, which will receive LNG directly from
ABS rules and/or appropriate codes. the FLNG unit via loading arms in a side-by-side configuration.
Several FLNG projects are currently under development, According to Shell, this vessel will be the largest floating
including one for Delfin LNG. Contractor Bechtel was selected offshore facility in the world once it enters operation.
to perform front end engineering and design (FEED) work for Malaysias Petronas has been another of the FLNG
this newbuild, which will be the first US-based FLNG unit to sectors success stories. Its first unit, which was originally
go into service at Port Delfin a proposed deepwater port known as PFLNG1, received its official name, PFLNG SATU, in
early March 2016, marking another
milestone for the company in the

FSRUs: a growing niche


global LNG market.
PFLNG SATU, which has the
While lower gas prices have created a difficult environment for most gas capacity to produce 1.2 million tpy of
subsectors, the emergence of a spot market and the availability of low priced LNG, is to be stationed on Malaysias
LNG has created a relatively favourable market for floating storage regasification Kanowit gas field, 180 km offshore
units (FSRUs). Analysts often include FSRUs when forecasting offshore gas sector Sarawak, and will be the worlds first
activity. According to Visiongain, FSRU spend this year will total approximately operating FLNG vessel when it begins
US$2.10 billion.1 operations later this year.
Part of the reason for this positive development is the fact that the volume of Meanwhile, work is progressing on
LNG production is growing globally and FSRUs make it comparatively easy to PFLNG2 , the hull of which was
process this gas for use. Furthermore, as FSRU construction costs are launched in May 2016. ABS was
approximately half of the cost for an onshore facility, and can be built and delivered selected to class the second vessel
in two or three years in comparison to the five to seven years needed to build an and to provide technical services in
onshore import terminal, they make good sense economically. September 2014. The second Petronas
Therefore, FSRUs are an efficient, safe and flexible way of creating new LNG newbuild is to be moored via an
markets. They can also help balance the market in the long-term. external turret on the deepwater
The number of players in this arena, while somewhat low today, continues to Rotan gas field offshore Sabah,
increase. Excelerate Energy, Exmar, Golar LNG and Hegh LNG have been pioneers Malaysia. Designed to produce
in the FSRU sector. More recently, others have joined the ranks, and more 1.5 million tpy, the vessel is expected
companies are likely to step into the mix over the next few years. to operate on site for a minimum of
A report by King & Spalding points to varying charter lengths as one of the 20 years without dry docking.
drivers for increased FSRU utilisation.2 Examples include short-term charters, which On the lease-contractor side, both
are allowing countries such as Egypt and Kuwait to use FSRUs as bridging Golar LNG and Exmar have moved
solutions. forward and into construction. Exmars
In the case of Egypt, this means using FSRUs while offshore gas discoveries are 0.5 million tpy unit built in China at
commercialised. In the case of Kuwait, meanwhile, it means using FSRUs while Wison was initially intended for
land-based terminals are developed. The report points out the contrast between Colombia, but is now looking for a
these contracts and others, such as one between Petrobangla of Bangladesh and new site. The unit is mechanically
Excelerate Energy, that are much longer term in this case, 15 years. According to complete and is undergoing
the report, changes in the ways that FSRUs are financed also act as a catalyst for commissioning. Golar is in the
growth. construction phase for its first FLNG
The end result is that FSRUs are gaining a strong foothold in many parts of the conversion, which is going to Perenco
world, and there are likely to be more of them on the market in more creative in Cameroon. Golar has also placed
applications. orders for the generic conversion of
two additional Moss hulls, and it

32 LNGINDUSTRY AUGUST 2016


Figure 2. Delfin LNG is constructing a newbuild unit that
will be the first US-based floating LNG (FLNG) vessel to go into
service at Port Delfin a proposed deepwater port and FLNG
facility approximately 50 miles (80.5 km) offshore Louisiana
(image courtesy of Delfin LNG).

appears that the first of these will be used for Ophir Energys modular arrangement as import and export terminals in
Fortuna project in Equatorial Guinea. shallow water, as they are floated in and connected to a
The next major operator project expected to reach Final pre-installed bottom frame.
Investment Decision (FID) is ENIs Coral in Mozambique. The Each unit can be outfitted with membrane or SPB tanks,
company has government approval, and FEED competition is and the storage volume and process, support and living
complete, with media reports indicating that sanction is quarter area can be adjusted accordingly. Since each module
targeted for this year. is fixed to the seabed after being floated in, modules can be
Once PFLNG SATU, Prelude and other units, such as connected with rigid and cryogenic connections. In other
Golars first conversion, enter operation, valuable operational words, the design offers the benefits of a floating solution
experience will be gained, providing operators, financiers and without the disadvantages of sensitivity to sea motions.
insurers with greater confidence in FLNG going forward. This
will help to achieve positive FIDs in the future. Conclusion
Although developments in the FLNG sector have slowed,
New concepts a rebound in oil and gas prices has the potential to create
In 2012, SBM Offshore also introduced an FLNG unit designed long-term demand for these units. Worldwide recognition
for small to medium fields for which ABS awarded AIP a that gas is the cleanest-burning hydrocarbon has sharpened
mid scale unit that could process LNG, LPG, and condensate the focus on gas development, which will have a place
on a twin hull. In this novel approach, SBM envisioned joining in a greener and more environmentally stringent world
two Moss type LNG tankers to create a twin hull with LNG economy.
in Moss spheres, other liquids in the cofferdam between the The offshore industry understands the need to continue
two hulls and the process facilities in a flat area in front of the developing technology, regardless of market conditions. The
remaining spheres. challenges that exist today will still be there when oil and
More recently, ABS awarded AIP to Sevan Marine AS for gas prices recover, and technologies to address those
the industrys first cylindrical FLNG production unit. The challenges will be necessary. Classification societies will
concept is based on a proven circular and geostationary continue to work with companies designing innovative
floating production, storage and offloading (FPSO) vessel concepts that will take the oil and gas industry into the
designed for deepwater and harsh environments. future.
The unit will be capable of operating in more than 3000 m
water depth. Its unique hull shape will enable a high volume References
of LNG storage, while eliminating the need to weathervane in 1. Floating Liquefied Natural Gas (FLNG) Market:
rough seas. This design supports gas processing and 2016 2026: CAPEX and Capacity Forecasts for LNG
liquefaction up to 4 million tpy and storage up to 240 000 m3
FPSOs and FSRUs, Visiongain, (March 2016), https://
www.visiongain.com/blog/index.php/the-floating-
of LNG and 36 000 m3 of condensate. liquefied-natural-gas-flng-market-2016-2026-capex-and-
Another recent recipient of AIP is Gravifloats GF-LNG a capacity-forecasts-for-lng-fpsos-and-fsrus/

box-like unit that is designed to capitalise on the advantages 2. FSRUs: Looking back at the Evolution of the FSRU
Market, King & Spalding, (December 2015), http://www.
of shipyard construction (schedule predictability, construction lexology.com/library/detail.aspx?g=964b07cd-2d16-420b-
quality and schedule control). These units can be used in a 96d4-af47dc2935f2

AUGUST 2016 LNGINDUSTRY 33


Figure 1. The HiLoad LNG Parallel
Loading System (PLS) using Technips
Amplitude LNG Loading System (ALLS)
cryogenic flexible flowlines.

Brian Roberts, Technip, France, and


Lars deskaug, HiLoad LNG AS, Norway,
present a solution for LNG transfer on
floating LNG units in harsh environments.

34
Enabling harsh
environment

FLNGs
loating LNG (FLNG) is a game changer for the oil and gas

F industry, enabling remote offshore gas reservoirs to be monetised


without recourse to high cost submarine pipelines and onshore LNG
facilities.
To date, all FLNG projects that have been sanctioned are located in areas of the
world where the environment of wind, waves and current are sufficiently benign to enable
the FLNG unit to offload its cargo to an LNG carrier in a safe and reliable manner using
conventional technologies. However, as FLNG developments are contemplated in harsher
environments, certain systems go beyond their envelope of safe and reliable operation and need to
be substituted by different ones.
On its first two FLNG projects, Technip has integrated rigid pipe loading arms into its design for LNG
transfer to an LNG carrier in the side-by-side configuration, which is an appropriate method in persistently mild
environments. Rigid pipe loading arms are almost exclusively the means for performing LNG transfer operations

35
globally whereby an LNG carrier is moored alongside a jetty in developed for use in LNG transfer in the tandem moored
sheltered waters. In these circumstances, the ability to moor the configuration.
LNG carrier to the jetty and then connect the loading arms on the Tandem mooring is where the LNG carrier approaches the
jetty to the LNG carriers manifolds is a relatively simple and safe stern of the FLNG facility, and is thus also known as stern-to-bow
operation. This offloading configuration results in small offloading. A typical separation between the two vessels would
quasi-static relative motions between the jetty and the be 100 m, providing a much safer mooring arrangement than
LNG carrier, which are readily accommodated by the loading when the vessels are moored closely side-by-side. Tandem
arms. mooring is the same configuration that is used for the safe and
However, for FLNG facilities that are located in unsheltered reliable offloading of oil from harsh environment floating storage
open sea areas, the mooring and offloading operation for LNG production and offloading (FPSO) units, but requires that the oil
becomes more complex. Now, the LNG carrier needs to moor shuttle tanker has a bow mooring and an oil receipt manifold
alongside another floating, and hence moving, body rather than a located on the bow. It is also preferable, from a safety perspective,
fixed jetty. As a result, the relative motions between the two for the shuttle tanker to have a dynamic positioning (DP) system.
facilities increases. On Technips two FLNG projects that have To take advantage of the safer tandem moored configuration for
been sanctioned to date, the LNG transfer operation is still feasible an FLNG, the LNG carrier requires a bow mooring and a bow
using side-by-side mooring and rigid pipe loading arms, but this located LNG receipt manifold, ideally with DP. However, since the
configuration has limits that are exceeded in harsher global fleet of LNG carriers all use side-by-side mooring and
environments. mid-ship LNG receipt and discharge manifolds, and are not DP
vessels, use of the safer tandem mooring configuration for
Tandem mooring offloading of LNG would require dedicated newbuild or converted
The company has spent several years developing a cryogenic LNG carriers. Whilst dedicated LNG carriers (either newbuild or
flexible flowline with its associated connection system that can be converted) may be appropriate for some FLNG developments,
used for the offloading of LNG from an FLNG unit to an LNG carrier. some operators express the desire to have the flexibility to access
The companys Amplitude LNG Loading System (ALLS) was the LNG spot market and, therefore, prefer the ability to offload to
a variety of non-dedicated vessels. Hence, the challenge for LNG
offloading from FLNGs in a harsh environment also includes the
desire, if possible, to use standard unmodified carriers.
One option for LNG transfer in harsh environments using
tandem mooring is to deploy FLNG hoses from the FLNG stern to
the LNG carriers mid-ship manifolds. This is a viable
configuration, but has some drawbacks. Firstly, the long hose
length, which is required to reach from the FLNG stern to the LNG
carrier mid-ship manifold, contributes to increased pressure drop,
reduced flow and a longer duration for the offloading operation.
The longer time required for the offloading operation means
increased cost (lower utilisation of the LNG carrier) and increased
risk (of collision between the vessels). Secondly, the motions of
the floating hoses in harsh sea conditions impose excessive
forces on the LNG carriers mid-ship manifolds and, therefore,
these need to be strengthened. Whilst this modification may not
be complex or overly expensive in terms of hardware or the time
to deploy in a shipyard, with the LNG carrier out of service, they
Figure 2. A typical view of an LNG transfer operation from a do mean that the LNG carrier has become a dedicated vessel and
jetty in sheltered waters.
is no longer a standard/unmodified design. Hence the increased
flexibility of offloading and accessing the LNG spot market has
been reduced.

A novel offloading system


Since late 2014, Technip has been working with HiLoad LNG AS
to develop a new offloading system to enable FLNG facilities
to operate in persistently harsh environments. The HiLoad
LNG Parallel Loading System (PLS) is able to safely maintain
a separation distance between the FLNG unit and LNG carrier
of 100 m, using the HiLoad for DP and for connection to the
LNG carriers mid-ship manifold. This arrangement can be used
with standard unmodified LNG carriers. The flow transfer of LNG
is carried out by Technips ALLS cryogenic flexible flowline based
system.
The heart of this new system is the HiLoad vessel. This is a
semi-submersible vessel with DP, which is able to attach itself to
another vessel by positioning its submerged pontoon
Figure 3. Technips ALLS being dynamically tested at ENGIEs underneath the other vessels keel. The connection between the
LNG import terminal at Montoir-de-Bretagne, France. vessels uses the same hydrostatic principle used by the

36 LNGINDUSTRY AUGUST 2016


n Customer Demand:
Large, efficient, critical service refrigeration compressors.

n Challenge:
Select a global partner with a long heritage and
proven technology in refrigeration applications.

n Result:
An Elliott installed base that is second to none.

They turned to Elliott


for leadership in LNG compression.
From the first commercial LNG baseload plants of the 1960s to todays global mega-plants,
LNG producers have chosen Elliott for efficient, reliable compressors and unmatched expertise.
Elliotts proven experience and technology is supported by manufacturing centers in the US
and Japan, full-load string test capabilities, and a global network of service centers.
Who will you turn to?

C O M P R E S S O R S n T U R B I N E S n G L O B A L S E R V I C E The world turns to Elliott.


www.elliott-turbo.com
remora fish when it hitches a ride on a larger fish. Indeed, the The HiLoad connects to the LNG carrier at a distance of up to
Remora company has already operated a HiLoad type vessel two nautical miles remote from the FLNG unit and, using its DP
(HiLoad DP No.1) for oil offloading operations in Brazil. system, brings the LNG carrier safely to a position some 100 m
Connection between vessels has been demonstrated during from the stern of the FLNG unit. A number of different positions
harsh environmental conditions in the North Sea and the were considered, but the one that was finally selected was with
HiLoad DP No.1 vessel has crossed the Atlantic Ocean twice the LNG carrier roughly parallel to the FLNG unit with the HiLoad
whilst connected to a trading tanker. One interesting effect and the LNG carriers mid-ship manifold level with the FLNG units
observed when the HiLoad type vessel is coupled to another stern. This vessel configuration gives the system its PLS name. In
vessel is its contribution to roll dampening of the connected fact, the LNG carrier vessel is at a slight angular offset of
vessel. This is a real benefit for LNG offloading operations since approximately 20 from parallel with the prevailing environment
reduced roll results in reduced sloshing on the LNG tanks of the acting partly on its port side to assist vessel separation naturally by
LNG carrier. Sloshing loads are at their greatest during the environmental forces in the event of an emergency situation.
offloading operation when the tanks are neither empty nor full. Since the HiLoad is connected to the LNG carriers mid-ship,
Sloshing loads, especially in membrane tanks, is a limiting the HiLoad DP system has a limited capability to control the
constraint on offloading LNG in harsh environments, so the use of LNG carriers heading, due to the relatively close separation of the
HiLoad can extend the environmental operating envelope of systems thrusters and the large lever arm of the LNG carrier.
some LNG carriers for this operation. Two heading control options are considered: one using a tug with
In an FLNG application, the HiLoad vessel connects to the a 40 t constant tension bollard pull connected to the bow of the
mid-ship of the LNG carrier on its port side. Once connected, the LNG carrier; and the other using the LNG carriers engines in dead
HiLoad uses its DP system to provide accurate positioning of the slow ahead and with heading (rudder) control on autopilot. Both
LNG carrier. Once coupled at the mid-ship of the LNG carrier, the configurations produced encouraging results, with the latter
HiLoads LNG rigid pipe loading arms connect to the LNG carrier obviously being the lower cost option.
mid-ship LNG receipt/discharge manifolds. Since there is no The LNG transfer between the FLNG facility and the HiLoad is
relative motion between the two vessels during connection, the achieved through the Technip ALLS flexible cryogenic flowline
loading arms are small and simplified, and dynamic loadings on system. With a 100 m separation distance between vessels, the
the LNG carrier manifolds are close to zero. As a result, the pressure drop in the flowline is acceptable for efficient offloading.
offloading system enables standard/unmodified LNG carriers to The HiLoad PLS has been studied from a station keeping
be used for LNG transfer. perspective together with MARIN in the Netherlands with input
from Kongsberg Maritime (the DP system supplier for the
HiLoad DP No.1 vessel). The marine procedures required to
perform the operation have been reviewed and developed by the
Captains from the HiLoad DP No.1 vessel and master mariners
with LNG carrier experience. The station keeping of the HiLoad in
the parallel loading configuration was confirmed using MARINs
full size bridge simulator in Wageningen, the Netherlands, where
it was witnessed by representatives from seven oil companies.

Conclusion
Technip, together with HiLoad LNG AS, has developed an offshore
offloading system that is suitable for LNG transfer from FLNG
units to standard/unmodified LNG carriers in persistently harsh
environments. This solution is a major enabler for when the
industry decides to deploy the game changing technology of
FLNG in areas with more challenging weather.

Figure 4. The HiLoad DP No. 1 vessel during oil offloading


operations in Brazil.

Figure 5. A view of the HiLoad LNG vessel showing the small Figure 6. View from the LNG carrier bridge during the
(static) rigid pipe loading arms. HiLoad LNG PLS operation simulation at MARIN.

38 LNGINDUSTRY AUGUST 2016


Flexible hose
DEVELOPMENT
Mutaz Bashir, Dunlop Oil and
Marine Ltd, UK, outlines a number
of novel aspects in the development
of flexible LNG hose technology.

T
he development of large bore flexible non-bonded cryogenic composite
hose technologies for LNG transfer came about in the early-mid 1990s.
The development was driven by the determination of the LNG industry
to exploit the abundant, but scattered, offshore natural gas resources. Flexible
hose technology is fundamental to allow for LNG transfer in harsh and dynamic
offshore conditions.
The cryogenic characteristic of LNG is a major technological challenge,
which meant that novel LNG hose technologies, and indeed novel LNG transfer
systems as a whole, were needed to attain a high level of performance and
confidence that was equivalent to that of other technologies that had been
used in the transfer of other oil and gas products for many decades.

39
In 2011, Dunlop Oil and Marine Ltd (a subsidiary of the contact-mechanics that directly influence the mechanical,
ContiTech division of Continental Corp.) stepped into its first thermal, and coupled thermo-mechanical behaviours of the
flexible non-bonded cryogenic composite hose technology hose.
for LNG transfer. This flexible LNG hose technology has a Dunlop Oil and Marine Ltd developed its own in-house
16 in. inner bore, 20 bar rated working pressure, 1.5 m numerical design capability for prediction, verification and
minimum bend radius, and 300 kN rated working load. It is development of its flexible non-bonded cryogenic composite
intended for offshore and nearshore aerial LNG transfer LNG hose design. Three levels of numerical design
configurations given its high strength, light weight (45 kg/m), capabilities were developed:
and flexibility properties. The first level is a global dynamic numerical analysis of
A number of key novel aspects in the development and the hose in typical transfer configurations. In this analysis,
qualification testing of this technology are presented in this the hose is represented as a series of jointed beams
article. with varying stiffness. The numerical analysis allows for
six degrees of freedom; three translational and three
Design developments rotational displacements. Figure 1 shows an example
The design of flexible non-bonded composite hoses is of how this level of model can be used to predict strain
challenging, as a specific set of hand calculations and/or distribution on a 20 m long hose at minimum bend radius
analytical models has not been developed to solve the of 1.5 m.
structural problem. Furthermore, the non-bonded
The second level is a global non-linear finite element
characteristics of the hose structure results in complex
analysis in which the hose is represented by solid
elements with isotropic and orthotropic material
properties, as appropriate. The example in Figure 2 shows
the thermo-mechanical response of the hose end fitting
to accidental rapid cooling using this global finite model.
The third level is a group of local non-linear finite element
analyses in which specific areas of interest can be further
investigated. For this, the types of elements and material
models used vary to a greater extent compared to
those described in the second level. An example of this
is shown in Figure 3 in which a local model was used
to investigate the thermo-mechanical behaviours in a
specific section of the hose.

Combining these numerical design capabilities results in a


reliable assessment of hose structural response in specific
LNG transfer configuration. It also allows design
developments to be assessed for specific non-standard
Figure 1. Strain distribution predictions using global dynamic configurations.
numerical model.

Manufacturing developments
It is challenging to develop robust manufacturing
infrastructure including tooling, processes and procedures
to ensure that the hose is manufactured to the unique set of
properties set out in the design. Another key challenge is that
the base materials that go into manufacturing LNG hoses are
typically high-end technology materials with high costs.
The manufacturing of non-bonded structures adds
another dimension of complexity in terms of base materials
handling, application, and carrying out subsequent
manufacturing processes. As such, manufacturing flexible
non-bonded LNG hose technology requires bespoke
manufacturing tools with automated facilities that allow for
both accurate and consistent handling/application of the base
materials used to construct the hose. This must also be
accompanied by detailed manufacturing procedures and
quality checks to ensure that the hose is manufactured to the
required standards, tight tolerances and high levels of
repeatability.
Dunlop Oil and Marine Ltd developed a design for a
bespoke automated manufacturing tool to robustly control
Figure 2. Thermo-mechanical response predictions in the hose manufacturing processes. The robustness of the tool
accidental rapid cooling for consistent and repeatable LNG hose manufacture has

40 LNGINDUSTRY AUGUST 2016


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been fully tested and proven. This was carried out in parallel hose technology for specific LNG transfer configuration.
with the development of a detailed manufacturing process LNG transfer systems, in general, incorporate flexible LNG
that works to tight tolerances down to 0.5 mm in some hose technologies in either aerial or floating configurations.
aspects of the process. The development of the automated There are key wish list hose properties for either of these
tool and manufacturing processes resulted in two new configurations. In practical terms, some of these wish list
patents, which are currently in submission. Furthermore, the properties conflict with one another. Therefore, it is essential
company identified and implemented non-destructive to identify which properties should be prioritised for a
inspections (NDI) for the inspection and verification of its LNG specific flexible hose-based LNG transfer system. Examples
hose structure down to sub-components level. of these properties and their inter-conflicts are briefly
outlined below.
Testing developments
The scope of testing for flexible LNG hose technologies is Thermal insulation, flexibility, and light
specified in the BS EN1474:2 2008 standard Installation and weight properties
Equipment for Liquefied Natural Gas Design And Testing Thermal insulation reduces the heat transferred into the
Of Transfer Systems. However, this standard is considered hose. This subsequently reduces the volume of LNG that
to be over-specified with respect to having to conduct every transforms to vapour and/or gas, which has economic,
operational test at both ambient and cryogenic conditions. storage, and handling benefits. However, a thermal
In practical terms, ambient conditions are not of significant insulation system can significantly reduce the flexibility of
importance in LNG transfer. The standard is also considered the hose and substantially increases its weight, both of which
to be under-specified with respect to the non-detailed testing are disadvantages for aerial and floating LNG (FLNG) transfer
procedures. This can be challenging in terms of making sure system configurations.
that each of the tests is carried out in such a way that is
representative of realistic operational conditions. Flotation, thermal insulation, flexibility,
Dunlop Oil and Marine Ltd decided to assess multiple and light weight properties
LNG transfer operations and scenarios from which bespoke A key advantage of floating hose technology is its ability to
test rigs and procedures are developed. The test rigs are self-reconfigure under dynamic wave and environmental
developed to complete the qualification testing beyond the motions and loads, resulting in an overall reduction in loads
requirements that are specified in the BS EN1474:2 2008 experienced by the hose. However, flotation must be paired
standard, and facilitate a wide range of additional tests that with robust thermal insulation, as seawater acts as an infinite
can be tailored to suit the LNG hose application in specific heat sink, transferring heat into the hose. At the same time,
LNG transfer configurations. By the end of January 2016, a hose flexibility is compromised if it is equipped with thermal
total of 20 qualification tests had been completed out of insulation. Limiting floating hose flexibility also limits its ability
22 tests. to reconfigure itself under dynamic motion. As such, the load
The company also developed two additional tests to experienced by the hose increases. Currently, no flotation
verify the hose performance under specific accidental material technologies exist that remain flexible at the low
scenarios. temperature range of LNG. Other vacuum-based insulation
technologies are expensive, limit hose flexibility, substantially
Flexible LNG hose wish list increase hose weight, and can be sophisticated to maintain in
properties harsh environments. All of these factors must be considered
It is important to support the industry with some level of when designing for FLNG transfer configuration.
appreciation of the benefits and limits of the flexible LNG
High strength, thermal insulation, flotation,
and light weight properties
Designing a non-bonded hose to high strength is a technically
challenging task without also having to ensure that this high
strength is equally matched and managed in the multitudes
of thermal insulation and flotation modules within the light
weight limits.

Summary
Flexible hose technology is fundamental to allow for LNG
transfer in offshore and nearshore dynamic conditions.
Novel design capabilities, manufacturing set-up, testing
infrastructure, and knowledge are required to overcome the
challenging cryogenic characteristics of LNG. This includes the
development of numerical analysis-based design capabilities;
bespoke manufacturing tools and manufacturing processes;
and bespoke testing facilities and procedures. However, it is
important to appreciate how some of the LNG hose properties
can be in conflict with one another and how this must be
Figure 3. Local model analysis under transient considered in the design of LNG transfer systems that are
thermo-mechanical conditions. based on flexible LNG hose technologies.

42 LNGINDUSTRY AUGUST 2016


TWO
HEADS
ARE BETTER THAN ONE
John Lamb, Alpha Process Controls, UK, explains why
increased collaboration will create better connections for
the LNG transfer industry.

T
he steep drop in the oil price in recent times has been the hallmark of companies in the supply chain for many years,
felt across the energy industry. The epicentre has but more often than not, these solutions are created off the
undoubtedly been the exploration and extraction shelf and are adapted to meet the specific requirements of the
elements of the oil and gas sector, where projects have been client once a contract is agreed.
postponed or cancelled, but it has created a new movement This, of course, will hamper timescales. Therefore, while
in the sector that needs to spread across the entire industry. there is still a major requirement for a standard range of
Even before the oil price began to fall, the oil and gas sector industry-ready solutions, the need to deliver products and
realised that operational costs were spiralling and some services that meet end-user requirements from design concept
projects were becoming unviable. A cultural change was through to commissioning and application is even more
required to stem the increase to its cost base and ensure that important in the current cost and efficiency-focused climate.
the industry has a sustainable future. Establishing collaborative relationships with end-users to
At the heart of this cultural change is the need for greater ensure the creation of a bespoke solution should not be
collaboration between operators, prime contractors and confined to the oil and gas sector. Within the LNG transfer
members of the supply chain. The development of market, Alpha Process Controls (APC) is applying this approach
game-changing, innovative, technology-led solutions has been to solving a challenge for a major global operator.

43
LNG breakaway couplings enabled the controlled shutdown of internal valves (ESD1) and
Demand for LNG is increasing, in part due to the the coupling separation (ESD2). Through controlled shutdown
application of LNG as a fuel for ships and ferries. With of the ERC, even at high flowrates, pressure surges are
stringent environmental regulations introduced by the maintained to a level without compromising pipework or
International Maritime Organization (IMO), including pumps in the event of a vessel drift-away.
Emission Control Areas (ECAs) encouraging the use of LNG as The development of the system also utilised APCs
a marine fuel, there has been a focus on the creation of safe experience of delivering smaller ERCs that are attached to
and effective transfer technologies for ship-to-ship (STS) and loading arms for vehicle refuelling that have a release
bunkering operations. mechanism activated by a simple pull cable.
The LNG industry already enjoys an excellent safety record These couplings formed the basis of the development
and it is important to maintain this level of safety through the programme for the next generation of ERCs and, following
delivery of optimum fuel transfer operations, as opposed to oil extensive consultation with LNG specialists and industry
fuel bunkering, where spills are commonplace. Environmental end-users, have led to the cable activating system being
considerations are also paramount to prevent any spillages or applied to APCs offshore couplings that provide a safe and
release of LNG. reliable operation in demanding conditions and extreme
While early breakaway couplings featured expensive environments. Safety is enhanced by the couplings ability to
hydraulic power units (HPUs) to perform shutdowns in the operate without the need of power requirements.
event of a separation, the increasing use of LNG for fuelling via This experience has been beneficial in the development of
bunkering or STS transfer, and the need to meet safety and solutions for small scale LNG transfer for bunkering and STS
environmental considerations, has driven innovation from fuelling where tank capacity is much lower and flowrates are
within the supply chain. typically 300 m/hr.
APCs contribution to the market was the creation of an
Emergency Release Coupling (ERC) system that disposed of Collaborative design, testing
the need for an HPU, but featured a two-stage operation that and production
APC has established a relationship with a global operator, which
is bound by a non-disclosure agreement, to devise and develop
a bespoke version of its LNG marine ERC breakaway coupling.
The 4 in. (DN 100) ERC comprises of two coupling halves
with internal poppet valves that are held together with an
external collar arrangement. Installation of the coupling is
designed to be either on ship side or shore side.
Operating a two-stage disconnection process, the ERC
firstly instigates an operation sequence ESD1 where the
activation cable, which is shorter than the total length of the
LNG hose, will operate and close down the two internal
poppet valves. The closure of the poppet valves is internally
damped to reduce the effects of surge pressure.
The need for controlled damping became evident during
the coupling flow testing programme.
The coupling without internal damping was set up in APCs
flow test rig connected to a pump via fixed pipework with
pressure recorders, flow meter and flexible hoses. Flow was
Figure 1. Alpha Process Controls (APC) small scale LNG introduced to the system at a rate of 300 m/hr and the
bunkering Emergency Release Coupling (ERC).

Figure 2. An ERC on the test rig at APCs test centre in Figure 3. ERC during cyrogenic testing at APCs UK R&D
North East England. facility.

44 LNGINDUSTRY AUGUST 2016


SCHOTT Eternaloc Terminal Headers

Small component
Big Impact.
Electrical terminal headers are small, yet safety-
critical components of LNG vessels and terminals.
They hermetically feed electricity and data to
submerged LNG pumps, turbine expanders and
compressors. At the same time their quality and
reliabilty is critical to uphold the pressure vessel
Figure 4. APCs ERCs engaged in ship-to-ship (STS) bunkering. integrity and therefore the safety of the entire
system. SCHOTT Eternaloc terminal headers are
coupling ESD1 was activated with an instantaneous closure the safest, most proven solution available in the
rate of approximately 5 msec. The pressure spike during the market. Whats your next milestone?
shutdown was significantly higher than that of the Class 150
rated system. www.schott.com/lng
Designed to mitigate the effects of rising pressure, this
internal dampener is unique to the companys couplers and
meets the latest standards and guidelines that have been
introduced to support safe operations in LNG transfer,
including those set out by the Society for Gas as a Marine
Fuel (SGMF) and the Society of International Gas Tanker and
Terminal Operators (SIGTTO). They are also approved to
quality assessment system standard ISO 9001: 2008.
LNG transfer couplings also have to meet
BS EN 1474-1 (2008) Installation and Equipment for
Liquefied Natural Gas Design and Testing of Marine
Transfer Systems.
APCs existing portfolio has achieved these standards
along with class approval. The new bespoke coupling is on
course to achieve third-party design class approval in the
near future. In addition, the coupling will be subject to the
operators own Safety Integrity Level (SIL) to ensure
reliability prior to deployment.
Undertaking the SIL process throughout the development
and production of the breakaway coupling demonstrates
another advantage of the collaborative approach, both
during the design stage and during manufacturing where
challenges that needed to be overcome could be addressed
in partnership with the customer to ensure that whatever
innovations were implemented to meet their operational
requirements also met their strict safety protocols, as well as
those set out by the industry.

Conclusion
In recent years, significant progress in LNG transfer has
been driven by innovation and a commitment to safety
and environmental standards from both operators and
suppliers. The requirements of the industry and the creativity
and problem solving skills of suppliers have ensured that
effective solutions have been devised and applied. However,
the next stage of the evolution of the LNG transfer sector is
to form stronger bonds between operators and the supply
chain that will bring new technologies to market quicker,
deliver cost savings and optimum bespoke operation in the
field.
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Clea n , g r e e n
shipping m a c h i n e
y,
r s ig , D N V GL, German
hael W efficient
Dr Gerd Mic vironmentally friendly, esign.
en box ship d
presents an and flexible

O
nly the most efficient ships will play a major role in tomorrows shipping industry.
DNV GLs ambition is to drive forward innovative solutions that create value and
growth, and that also reduce CO2 and NOX levels on both a global and local scale.
Therefore, the idea of a new mega box ship design, which can increase the vessels
efficiency, reduce fuel consumption and offer a commercially interesting solution at the
same time, was born.
Gaztransport & Technigaz (GTT), CMA CGM, together with its subsidiary,
CMA Ships, and DNV GL have released a technical and feasibility study for a new
mega box ship the Piston Engine Room Free Efficient Containership
(PERFECt).
The concept vessel is LNG-fuelled, powered by a combined gas and
steam turbine, and is electrically driven. This novel configuration has
the potential to offer a more efficient, more flexible and greener
box ship design than current 20 000 TEU two-stroke diesel
engine driven ultra large container vessels.
The ship, which is equipped with LNG membrane
tanks for one full Asia-Europe return voyage, was
benchmarked against a conventional heavy fuel oil
(HFO) fuelled vessel featuring the same hull shape
and operating in the same trade.
The study demonstrates that the potential
for an optimised LNG-fuelled Combined Gas and
Steam turbine (COGAS) system goes beyond the

47
Figure 1. General arrangement of the Piston Engine Room Free Efficient Containership (PERFECt).

mechanical power or electricity. Modern stationary COGAS


plants running on natural gas achieve net plant efficiencies of
approximately 60%. This value cannot be reached by
conventional diesel engines of ships where the engine efficiency
is known to be approximately 52%.
The high power density and the modularity of COGAS
plants, together with the electric propulsion concepts, lead to
additional container slots. This makes up for the slots that are
lost by the higher space requirements for LNG as fuel compared
to HFO as fuel.
The trend towards increasing size and relatively high design
speeds of containerships leads to a high power demand of these
ships. It allows efficient COGAS plants, which can be expected
to be competitive with conventionally fuelled two-stroke diesel
Figure 2. Mark III tank installed on an LNG carrier. engine systems.

The reference ship


As a reference and base for the evaluation, a conventional
HFO-fuelled 20 000 TEU container vessel is used. The
most relevant design parameters used for the study are the
following:
80 MW total installed power.
Single screw layout.
65 MW at 22 knots at scantling draft.
Overall length of 400 m.
Figure 3. Model of the PERFECt. Beam of 59 m.
Depth of 33 m.
Container capacity of 20 000 TEU.
efficiency of the oil-fuelled engine systems used today. Cargo
capacity is increased by the use of LNG and not decreased, as is The analysis of overall ship efficiency and fuel consumption
the case for LNG-fuelled piston engine systems. In fact, the is based on an Asia-Europe return voyage using the real profile
cargo capacity is higher than the capacity of a conventional and including all port calls.
oil-fuelled ship of the same size. The electric power demand for the leg varies widely as a
The electric power generation allows the power plant to be result of varying ship speeds between the single ports and the
split from the propulsion motors. In addition, the three electric different numbers of reefer containers carried. Furthermore, there
main motors, which are arranged on one common shaft, can run is a significant difference between the power demand at sea,
fully independently from each other, providing increased which reaches values of more than 50 MW, and the power
redundancy and reliability. demand in port, at less than 5 MW. In addition to the power
demand of the ship, it is important to consider the ambient
A closer look conditions when designing a propulsion concept. The ambient
LNG is the ideal fuel for gas turbines. The turbine inlet conditions affect the performance of a powering system,
temperatures and, as a consequence, the turbine efficiency, can especially that of a gas turbine.
be increased compared to turbines fuelled with conventional For the conventionally fuelled reference ship, a scrubber
ship fuel. Also, the turbine outlet temperature increases and system was assumed. The comparison of both designs is based
allows for the installation of highly efficient steam turbine cycles, on the total fuel consumption during the two-way voyage.
which use the turbine exhaust gas. The final result showed that the overall efficiency of the
For these reasons, COGAS power generation is currently the COGAS system and that of the HFO-fuelled two-stroke engine
most efficient and economical way to convert fuel into system are close to each other. It has to be considered that the

48 LNGINDUSTRY AUGUST 2016


COGAS system chosen for the
feasibility study is not finally
optimised. There is still further
potential for efficiency by:
Minimising the steam
turbine size to increase
efficiency.
Reducing power capacities
to run the system closer to
the optimal efficiency.
Optimising the condenser
cooling of the steam turbine
to increase steam turbine
efficiency.
Figure 4. Modelling aspects of the COSSMOS model.
Using a two-stage pressure
steam turbine and steam
generator instead of the
single-stage turbines used in
the feasibility study.

It is expected that the net


efficiency of the COGAS system
will be well above the efficiency
of the conventional system.
Additional gains in efficiency are
expected by optimising the ship
design and taking advantage of
the flexibility related to the
missing engine room.

A new ship
All power consumers are
electrically driven. The electrical Figure 5. Operational profile for the ship.
propulsion concept of the
design allows for the decoupling
of the power generation by generator sets from the power software. A detailed model of the system is developed and
supply to the propeller by electrical motors. As a consequence, calibrated using validated data.
a conventional engine room is not needed and additional The model consists of 209 components (main and auxiliary)
container slots are provided. counting for 4048 non-linear equations.
One of the main challenges for the simulation is the high
Power distribution complexity and dependency among all components. For
The aim is to provide a minimum number of power generating example, the power generation of the gas turbine and the power
sets, most of them being identical and all of them able to run generation of the steam turbine depend on each other, which
in parallel in load sharing mode. This allows for the higher load has to be considered for the simulation. For a given power
of operation of the generating sets during operating modes demand, the starting point of iteration has to assume a certain
with small power requirements, which effectively increases the load of the gas turbines, while the rest of the power needs to be
systems efficiency. provided by the steam turbines. The produced power of the
The advantage of having identical generating sets is mainly steam turbines, however, depends on the exhaust gas
related to cost savings for maintenance (consumable, parameters of the gas turbines, which are the power source for
management of spare parts, etc.), the training of crew and the steam generator of the steam turbines.
adjustment of parameters in the various running modes. If the steam turbine cannot match the power demand, the
gas turbine load must be increased. Exhaust gas parameters and
Dynamics in the power demand mass flow change accordingly until the power of steam and gas
of the ship systems is balanced and the actual demand of the ship
The architecture of the power-generating system considers the propulsion, hotel load, auxiliary and cargo demand is met.
fast reaction time needed to increase or decrease the power, The balanced operational condition defines the LNG
even when such changes occur abruptly. consumption of the gas turbines, thus determining the required
heating demand for LNG vaporisation. As this is applied for the
System simulation intake air cooling of the gas turbines, this again affects the gas
For the evaluation of the COGAS system, the chosen layout turbine power, hence the balance of load sharing. The principle
is modelled and simulated in DNV GL COSSMOS simulation is the same for the changed demand in electricity for

AUGUST 2016 LNGINDUSTRY 49


Figure 6. Histograms of the main engines operational profile (left) and of the auxiliary engines operational profile (right).

cytogenetic pumps for LNG treatment, etc. This line could be construction. Within the scope of the study, it was
further drawn through all components in the complex system. qualitatively judged if the modified aft ship creates major
problems regarding the ships strength. No fundamental
LNG storage in membrane show-stoppers have been identified.
tanks The diagonal hatch opening deflections resulted in
Two membrane fuel tanks with a geometrical capacity of higher, but controllable, values.
10 960 m each (100% volume) are used for LNG storage. Maximum hatch cover movements rose. Therefore, the
The tanks are of GTTs Mark III Flex design. Figure 1 shows the affected holds require a modified hatch cover design (e.g.
principle of the insulation system and Figure 2 shows a Mark III five-cover design) or a stiffer hull construction.
tank installed on an LNG carrier. This design ensures safe At midship areas, the strength limit was partly
operation under all weather conditions and at all filling levels, exceeded; buckling in the inner and outer bottoms is
high thermal performance and high volume utilisation. The tanks possible. Here, the moment of inertia would need to be
are located near the midship section below the superstructure. increased, or the plate thickness in the critical regions must
The tanks are approximately twice the size of HFO tanks with a be increased.
similar energy content. Some container benches in the aft and the new
The space above the tanks is sufficient for the installation of propulsion engine room require reinforcement.
the COGAS system and the accommodation, hence no engine Finally, the hatch corner fatigue was investigated.
room is needed at the aft of the vessel. As a result, the ship gains DNV GL calculated all corners within the vessel. Results
approximately 300 container slots compared to the HFO-fuelled showed that all but one corner could be controlled by
reference ship. maintaining radius and adding plate thicknesses. The most
critical corner was on the upper deck where the support of
Global strength the removed main engine room deck is lacking. Here a
Without an aft engine room island, the question of global keyhole or alternative solution would be required in the
strength had to be evaluated to decide on the feasibility of the design.
concept.
DNV GL performed the global strength analysis based on a CAPEX and OPEX
generic standard containership design of approximately For the cost-benefit assessment, investment costs of
20 000 TEU. This design was modified in the aft part by the PERFECt LNG-fuelled ship were compared to the
removing the machinery room and decks and by adding lower conventionally propelled ship. Within the analysis, costs
engine room decks for the electric propulsion machinery space. for additional and reduced systems to the base case were
On top of the deck, container spaces were considered within the considered. These included additional costs for membrane
hold. Additionally, main engine foundations have been replaced tanks, gas and steam turbines, fuel gas handling, and
by smaller foundations for the electric propulsion engines. structural reinforcements (no aft engine casing), etc.
Both designs the generic standard design and the Some costs can be compared to the two-stroke engine
simplified alternative design are analysed with finite elements, system, including a scrubber (which is eliminated), cooling
with respect to the following: system capacity (which is reduced and the system
Hatch opening deflections and movements. simplified) and HFO treatment or tank heating (which is not
needed).
Stress evaluation of the whole vessel.
The CAPEX for the COGAS ship is regarded to be
Hatch corner fatigue. 20 24% above a conventionally fuelled vessel. The OPEX
costs largely depend on the difference in fuel price, the
The modified design will have to be reinforced at several additional income related to the additional containers,
local positions. This is mainly due to the reduced torsional which can be transported, and the savings related to a
stiffness of the new aft ship without the stiffening engine room possibly higher system efficiency.

50 LNGINDUSTRY AUGUST 2016


FED
Well
FED
I
n recent years, the
production of LNG has
grown dramatically. LNG
Steve Cheaney, Clark Dickson,
is being consumed for home and Phani Patchipulusu,
heating, motor fuel, industrial
fuel, and power plant peak Dickson Process Systems LLC,
shaving, as well other fuel uses.
A large amount of LNG is also
USA, look at feed gas
being produced for export.
Depending on the source of
pretreatment processes for
natural gas, some level of the LNG industry.
pretreatment will be required.
Typical feed gas specifications
are <50 ppm CO2 and <0.1 ppm H2O. These components are typically present in larger concentrations even
in pipeline quality natural gas (typically <2% CO2 and <147 ppm H2O). Raw natural gas from wells and other
sources can also contain sulfur compounds (primarily H2S). Although it is less likely, some natural gas streams
contain organic sulfur compounds, such as mercaptans (RSH), organic sulfides (RSR) and carbonyl sulfide (COS).
This article will discuss the types of removal processes by process type.

Alkanolamines
CO2 and H2S can be removed to low levels (<50 ppm CO2 and <1 ppm H2S) by contacting with aqueous
solutions of alkanolamines in a trayed (or packed) multi-staged contactor. Alkanolamine solutions are
basic in nature and react reversibly with CO2 and H2S when in an aqueous solution. The solutions are steam
stripped to remove the CO2 and H2S, and are returned to the contactor. The most common alkanolamines are
monoethanolamine (MEA), diethanolamine (DEA), diglycolamine (DGA) and methyldiethanolamine (MDEA).
MEA, DEA, and DGA are all capable of reducing gas concentrations of CO2 to <50 ppm and H2S to <1 ppm at
typical pipeline gas pressures. MDEA will not generally meet the LNG specifications for CO2 without the addition

51
of a promoter, such as piperazine. These promoted MDEA while one bed is in some stage of regeneration/cooling.
solutions can often reduce regeneration energy consumption The beds are switched via automated valves controlled by
significantly. A typical regenerable amine flowsheet is shown a programmable logic controller (PLC) or distributed control
in Figure 1. system (DCS). The regeneration gas is cooled, whilst the
water is condensed, removed, recompressed and returned
Molecular sieves to the plant inlet. Depending upon the inlet gas temperature,
Molecular sieves are a solid absorbent with a pore size the recycle gas cooler may be required to remove the heat of
controlled specifically to absorb molecules of a certain size compression. Adsorption cycle times are normally 8 24 hr,
and smaller. The most common application for molecular and regeneration cycle times are normally 6 20 hr. A typical
sieves is the removal of H2O. All of the amine processes Temperature Swing Adsorption (TSA) flowsheet is shown in
detailed previously will raise the gas H2O content, often to Figure 2.
saturation levels. H2O is removed by temperature swing Molecular sieves may also be used to remove other
adsorption from the gas stream and heated regeneration impurities, such as CO2, H2S, COS, H2O, RSH, and RSR. This
using a heated slipstream of the dried gas to heat the bed process is known as quick cycle TSA, as adsorption and
and desorb the H2O. Since the process is cyclic in nature, regeneration cycle times are normally approximately 2 hr. In
one or more molecular sieve beds is in the adsorption mode, the case of CO2 removal only, a fairly simple molecular sieve
process can be used. Since the CO2
cannot be condensed for the
regeneration gas stream, some other
means of disposing of the regeneration
gas must be found. Normally, this
regeneration gas is reinjected into the
source pipeline. Reinjection generally
requires that the pipeline withdrawal
rate for the LNG plant is small relative
to the main pipeline flow, so that the
main stream CO2 level is not raised
appreciably. Quick cycle TSA units are
normally considered to be less
Figure 1. Typical amine flowsheet.
expensive to install than amine/TSA
combined up to a LNG feed volume of
10 million ft3/d. Since the regeneration
gas rates are typically 45 50% of the
inlet gas rate for quick cycle TSA, the
regeneration gas equipment becomes
quite expensive for larger units. A
typical flowsheet is shown in Figure 3.
Molecular sieves can also be used
to remove higher levels of the sulfur
species, H2S, COS, RSH, and RSR, with
a similar flowsheet. However, the sulfur
containing waste stream will likely be
costly to dispose of in a fashion
acceptable under the current
environmental regulations.
Figure 2. Typical Temporary Swing Adsorption (TSA) flowsheet.
At this point, it should be stressed
to the potential LNG operator to obtain
a gas source upstream of any pipeline
odorisation facility. Natural gas
odorants are organic sulfur compounds,
most likely of the RSH or RSR families.
Failure to obtain a pre-odorisation gas
source will typically cost the operator
an additional 20 30% in both capital
and operating costs.
There are a number of sacrificial
products for the removal of mercury
(Hg) vapour from natural gas. Even if no
Hg is detected in the feed gas, the
prudent LNG operator will install a Hg
guard bed, as any Hg vapour will liquefy
Figure 3. Typical TSA flowsheet with regen gas recycle to pipeline. in the LNG process and attack the

52 LNGINDUSTRY AUGUST 2016


Pioneering technologies
Case study for various cryogenic applications
Dickson Process Systems was retained by a major
licenser of LNG processes in January 2014 to provide
an LNG pretreatment system for a plant to be
constructed in South Texas, US. The facility was
Fives offers a wide range of ultimate
to be designed to produce 9 million ft3/d of dry technologies dedicated to Industrial
(<0.1 ppm H2O) CO2 free (< 50 ppm) natural gas. The Gases, Natural Gas Processing, LNG,
gas stream was available at approximately 1000 psi
and 120F. The gas was free of any sulfur compounds.
and Olefins & Petrochemicals.
The company selected a proprietary MDEA blend
for the CO2 removal followed by a two bed, 3A, TSA
molecular sieve process. It then fabricated these two
processes on structural steel skids and shipped them
to the job site. The plant was commissioned and
started up during 1Q15. It has been fully operational
since that time.

brazed aluminium heat exchangers normally used in the


LNG process. The Hg attack can result in a catastrophic
failure of high pressure equipment. Cryogenic pumps

Physical solvent processes


Sulfinol, Selexol, and propylene carbonate have all
been used for CO2 removal from natural gas. A description
of these processes is available from the proceedings of
the Laurence Reid Gas Conditioning Conference.1 The
referenced discussion of these processes is broad and
detailed. The following are of particular interest to the
LNG operator:
These processes are advantageous for high acid gas
concentrations (generally >8 10%). This is not the
case when the LNG feed stream contains <2% CO2.
Brazed Aluminium Heat Exchangers
The processes have a low utility cost, but high solvent
cost.
The Sulfinol process is capable of removing the sulfur One name, 3 workshops,
species H2S, COS, and RSH to low levels, but the 400 pumps capacity/year,
resultant acid gas stream must still be dealt with in an thousands of equipment installed worldwide
environmentally responsible manner, much like the
mole sieve process, and the acid gas stream will be at
low pressure.
Reciprocating and Centrifugal Pumps, Brazed Heat
Exchangers, Cold Boxes, Cores-in-Drums whatever
Conclusion the project needs Fives, with its Cryogenics |
The process selection for LNG pretreatment is dependent Energy offer, supports its customer from design,
on a number of factors. Feed gas volume, temperature, manufacture, assembly and installation to the
and pressure can affect the choice of pretreatment maintenance throughout the equipment lifecycle.
process. The type and level of impurities can also
influence process selection. For cases where the Strengthened by over 50 years of experience with
significant impurities are CO2, H2S, and H2O, quick cycle the worlds major engineering companies and gas
TSA or amine treating followed by TSA are typically producers, Fives has built up a reputation for
chosen. When the impurities also include significant reliability and long-term relationship with customers.
quantities of organic sulfur compounds, a more
exhaustive study is required. As always, this study should
In addition to France, Switzerland and China, Fives
include the environmental concerns associated with sulfur
emissions.
established a new entity in the USA, Fives Cryo Inc.
in Houston, Texas, to further support the North
American market.
Copyright 2016 - Fives - All rights reserved.

Reference
1. GOAR, B. G., Todays Gas Treating Process, Selected
Proceedings From Gas Conditioning Processes CONTACT US
Volume III, 1952 through 1974. cryomec-pumps@fivesgroup.com
bahx@fivesgroup.com
www.fivesgroup.com
LNG trade:
an agents
PERSPECTIVE
Nick Elliott, Inchcape Shipping Services, UK,
presents a round-up of LNG activity from around the world.

L
NG is considered a specialist commodity China
requiring particular care and the attention of In December 2014, the Gaslog Chelsea, loaded with
experienced personnel. The technically complex 150 000 m3 of LNG from Papua New Guinea, berthed
and sophisticated nature of both the ships and terminals, at the Sinopec Shandong Qingdao LNG terminal in
as well as the highly regulated nature of the trade, China. Its arrival marked Sinopecs first LNG project in
requires the agent to be fully conversant with the unique Shandong Province. The first phase of the project has a
characteristics of the LNG trade, including local and designed receiving and transport capacity of 3 million t
international regulations. of natural gas and is capable of meeting the demand of
LNG carriers, ports and terminals have to meet 22 million households per year.
exceptionally high safety standards. Therefore, it is a Located at the new Dongjiakou port in the West Coast
requirement, and there is an implicit understanding, that New Area, the Sinopec Shandong Qingdao LNG terminal
all responsible parties, including the agent, are trained and was constructed and is operated independently by
vetted to a high standard and act with a full working Sinopec. In the future, it will have a receiving and transport
knowledge of the entire operation, and their role within it. capacity of 10 million tpy.

55
In 2009, Sinopec signed a long-term deal to buy Delivered Ex Ship (DES) terms. ISS estimates that more
2 million tpy from the PNG LNG project over a period of than 30% of cargoes are currently delivered by vessels
20 years. Sinopec is the last of Chinas three national oil chartered by Japanese buyers under Free on Board (FOB)
companies to begin importing LNG, making a significant terms, and this is a growing trend.
contribution to energy conservation and emission LNG cargoes are imported by 17 buyers at 29 LNG
reduction in the country. receiving terminals around Japan. The number of both
As agent, Inchcape Shipping Services (ISS) China has buyers and receiving terminals is expected to grow
been involved in this project since 2010. It assisted further in the year ahead.
Sinopec in developing know-how of terminal and ship Another feature of the trade in its early stages was the
operations, port tariffs, tug usage and other matters, such use of long-term contracts, typically for 20 years or more,
as assimilating and collating LNG terminal information with vessels deployed according to an annual delivery
and port manuals for Chinas LNG terminals. programme.
As of December 2015, ISS Qingdao had acted as local In recent years, the long-term contracts serving older
agent for 13 LNG shipments at the new port. LNG projects are expiring or are being renewed under
Compared with other vessels, LNG carrier operations new terms and conditions, while new LNG projects are
are demanding, commencing with the berthing operations appearing simultaneously.
at the yet to be finished Qingdao LNG terminal. As cargo sources have expanded, LNG buyers have
Furthermore, it takes at least five working days to obtain started importing cargoes from various points of origin on
relevant government permissions for berthing such spot, short-term or portfolio contracts, to meet peak
vessels. The LNG commercial interests also require a high demand or to cover the time gap between termination of
level of quality service. old contracts and the commencement of new projects.
As such, ISS Qingdao formed a team of specialised In particular, following the Thoku earthquake and
operational staff dedicated to the LNG business. The nuclear accident at Fukushima in 2011, electric power
Qingdao LNG terminal is still in its construction and companies dramatically increased LNG imports on spot
expansion phase and ISS continues to assist the terminal and short-term contracts, to cover the closure of nuclear
in all aspects of its marine business, including the power stations.
incoming LNG vessels. ISS expects LNG import volumes in Japan to remain
stable for the time being, although the import sources are
Papua New Guinea expanding.
In May 2014, the Spirit of Hela loaded the first Today, ISS Japan is working for nine projects
LNG cargo out of Papua New Guinea bound for supplying cargoes under long-term contracts, and for
Tokyo Electric Power Co. in Japan. ISS PNG acted as the more than 30 owners and operators of LNG vessels who
terminal agent for this historic shipment. trade under spot and short-term contracts. In 2014, ISS
The ISS PNG agency team is on site at the terminal, attended 898 LNG calls at ports around Japan. The
located 20 km from Port Moresby, on a daily basis, with companys role is not only to arrange port clearance, but
vessels loading every three to four days. As agents, ISS to assist its clients in maintaining and developing
coordinates and communicates between the terminal and business.
the carrier to handle arrival and departure, organise For owners and operators, it is important to comply
clearance procedures and ensure that there are no with the requirements of each terminal and local
operational delays. ISS also fulfils its clients cargo export regulations in addition to international rules. To this end,
documentation to meet customs requirements. ISS assists its customers in meeting requirements, such as:
To date, having handled over 150 vessel calls, the Customs verification to Custody Transfer
PNG terminal is almost regarded as the home port for the Measurement System (CTMS): before trading to Japan,
regular LNG carriers. ISS has extended its services to LNG vessels are required to have verification for
these vessels for all husbandry needs, such as crew accuracy of CTMS by Japanese customs authorities in
changes, immigration formalities, ship provisioning and order to determine the import quantity for taxation.
spares, waste removal, etc. These husbandry operations
Confirmation of ship-shore compatibility: when the
are carried out through the terminal or over the seaward
vessel calls at an LNG terminal for the first time,
ships side, which ensures that loading operations are not
it is common procedure to hold a meeting at the
disrupted.
terminal in order to confirm ship-shore compatibility,
ISS handles the coastal petroleum product tanker
(e.g. interface of ship-shore connection, mooring
trade on behalf of a client in Papua New Guinea. With the
arrangement, cargo operation procedures, etc.).
commencement of the LNG trade, which is expected to
produce more than 9 trillion ft3 of gas over the estimated Local regulations: for LNG vessels, each port authority
30 years of operations, ISS continues to strengthen its and terminal has the regulations for safety in port
service delivery to its LNG clients. entry and cargo operations according to the particular
conditions of each region.
Japan
Japan is currently the worlds largest importer of LNG, LNG operators and officer personnel are required to
although its imports dropped to 85 million t in 2015. study and understand those local regulations in advance,
In the early days of the LNG trade, all cargoes were and to fulfil the necessary reporting and arrangements for
delivered by vessels chartered by cargo vendors under escort tugs, watch boats, etc.

56 LNGINDUSTRY AUGUST 2016


US
In early 2012, ISS noted in an article published
by LNG Industry: As an important footnote, the
discovery of shale gas in the US has prompted
existing as well as potential new facilities to be
built with liquefaction capability, radically altering
SUBMERGED MOTOR
the balance of trade. Where several billion dollar
facilities have been developed over recent years for CRYOGENIC PUMPS
the import of LNG based on the fear of shortages,
these are now being transformed into export FOR LIQUEFIED GASES
facilities with US government approval. This in turn
has resulted in a transitional lull in business until
conversion work is completed still two years or
more away.1
Now, four years on, with much of the LNG market
still in limbo or in transition from regasification to
liquefaction, the authors can only speculate as to
how the market will develop over the next year.
The transition from regasification to liquefaction
is, of course, market driven. In respect of the US Gulf,

GLOBAL LEADER IN DEVELOPMENT,


the market underwent a drastic change in 2011 and
has remained somewhat weak ever since. The
development of LNG production in shale sites has

ENGINEERING AND TESTING


dramatically changed the market, forcing many
players to reverse direction or stop completely.
LNG movements that shipping agents such as ISS
have handled include discharge operations at
terminals such as CMS Trunkline LNG, Lake Charles,
Louisiana; Sempra Marine Terminal, Hackberry,
Louisiana; Cheniere Energy Inc.s Sabine Pass,
Louisiana; Golden Pass LNG, Sabine Pass, Texas;
Freeport LNG, Freeport, Texas; Southern LNG,
Elba Island, Georgia; and Dominion Cove Point LNG,
Lusby, Maryland.
Several of these terminals are in the process of
re-fitting, and many new start-ups are either breaking
ground or are still in the planning stage.
Most of the projects referred to above will not
have reached the US Federal Energy Regulation
Commission (FERC) approval and financial agreement
stage until later this year or into 2017. Completion of
many of the conversion projects in the states of
Superior Reliability
Louisiana and Texas are only forecast for 2017 to
2019.
Full Range of Cryogenic Pumps
From the agents point of view, the operational
learning curve to adjust to such change is minimal.
In tank, removable pumps
However, the inherent volatility of the LNG market
and the financial ramifications have been seen before. Vessel-mounted pumps
ISS has been able to weather the ups and downs Fixed mounted pumps
that have affected the industry over the years. When
LNG imports were strong, it was able to increase its Low total cost of ownership
experience through gaining a bigger market share.
When the US market began to slow down, it was
able to fall back on other longstanding business No shaft seals - maximize safety,
without losing those personnel with LNG experience. with low maintenance costs
Therefore, the company is ready to take on the
challenges and new opportunities that this sector
presents. Unparalleled quality

Reference Exceptional pump-down capability


1. ELLIOTT, N., Agents of change, LNG Industry,
(Spring 2012), pp. 53 56.
(Extremely low NPSHR)

WWW.NIKKISOCRYO.COM
LNG Industry Website

The home for the


latest LNG industry
news, analysis
and events
Visit our website today:
www.lngindustry.com
PUMP &
TURBOMACHINERY
equipment review
LNG Industry previews
a selection of the most
advanced pump and
turbomachinery equipment
in the build up to this years
Turbomachinery & Pump Symposia
in Houston, Texas, USA, from
12 to 15 September 2016.

ACD LLC

W ith over 50 years of experience, ACD LLC manufactures


cryogenic pumps and turboexpanders for the alternative
fuels, industrial gas and oil industries. Its diverse product
lines include a variety of reciprocating and centrifugal
cryogenic pumps for LNG service, as well as complete LNG
fuel pumping systems for marine and rail applications.
Other services include high pressure cylinder/storage filling
systems, trailer offloading, bulk transfer, LNG bunkering
operations, and storage tank filling.
The Cryogenic Industries Service Companies also offer
advice on product selection, technical support and ACD LLC LNG refuelling system.
trouble-shooting, pump installation, overhaul and field repair.
With additional in-house pump training programmes,
customers are given operational instruction and provided with ACD is ISO 9001-2008 certified, ensuring that every
current technologies to ensure that pumps are operating at component meets the highest standards of quality in the
the highest possible efficiencies. industry.

59
PUMP &
TURBOMACHINERY
equipment review

Air Products supply a 1.5 million tpy AP-NTM LNG Process including

F or nitrogen recycle process cycles, Air Products utilises


internally designed and manufactured turboexpanders.
The company has been engineering, manufacturing, and
turboexpanders for the Petronas FLNG DUA project.

operating turboexpanders for the air separation industry for


Camfil Power Systems
over 60 years with more than 1500 units built to date. In recent
years, this experience was leveraged to develop high power C amfils latest innovation in filtration, the CamGT 3V-600,
offers significant advantages when used in LNG
applications.
nitrogen turboexpanders for the AP-X LNG Process. For
more than five years, 24 of these turboexpanders have been The high value of LNG production means reliability and
operating reliably at world scale LNG production facilities in availability are critical, representing specific filtration
Qatar. challenges due to typical coastal and industrial settings. The
Air Products recently delivered turboexpanders to the mix of salt-laden air and high dust load means filtration
1.2 million tpy Petronas FLNG SATU project one of the needs to offer water repellency and high efficiency, while the
worlds first offshore floating LNG (FLNG) facilities to be reliability and availability requirements demand filter
located over Malaysias Kanowit gas field. This FLNG facility robustness and maximal filter life. The CamGT 3V-600, with
will utilise the AP-N LNG Process, which is one of the most the lowest pressure drop on the market, up to E13 efficiency,
efficient nitrogen recycle LNG processes in the industry. 26 in. burst pressure, and extended media area (24 in. depth),
Air Products was recently awarded a second contract to meets the challenges. The filter, when used as a final stage of
an inlet system, makes continuous operation over five years
attainable.
The CamGT 3V600 can help to eliminate costly
compressor washes, achieve maximum power output, lower
fuel consumption, extend turbine life, and reduce total cost of
ownership. The CamGT lines have proven to be successful in
LNG applications: an installation in Trinidad and Tobago of
26 units has been running for over four years without any signs
of power degradation or replacement of original final filters.

Compressor Controls Corp.

F or over 40 years, Compressor Controls Corp. (CCC)


has offered customised control solutions that improve
turbomachinery efficiencies, reduce plant downtime due to
gas turbine and compressor equipment failure, and maximise
profitability and production at LNG plants worldwide.
As customers adjust to market challenges and reduced
workforce, they are forced to change the way they operate to
Air Products highly efficient and reliable turboexpanders are be more efficient than ever before. The industrial internet of
suitable for many industries, including LNG, natural gas liquids things (IoT) has created an expectation of accessibility and
(NGL), air separation, hydrogen, and helium production. interconnectedness. CCC is at the forefront of this progress
with a new solution called Total Train Analytics. Managing
assets remotely and being able to access the important data
from a PI system allows customers to shorten downtime and
uncover the root cause faster.
Total Train Analytics is a software package that correlates
data from the process, the control system and machine
health into one view. This saves time and money by
providing a richer view of data leading up to critical events.
CCC continues to help customers achieve greater operating
profit by improving process efficiencies, reducing risk around
unplanned outages, reducing shutdown time, and
maximising exiting infrastructure.

Dresser-Rand business,
In order to liquefy natural gas, it has to be cooled to
part of Siemens Power & Gas
approximately -160C. Siemens constructs the large liquefaction
compressors required for this process (source: Siemens). T he oil and gas market continues to be challenging. The
industry is cutting back investments and must increase

60 AUGUST 2016
4th EDITION
4th EDITION Powered by
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CONFERENCE DELEGATE
AT A GLANCE REGISTRATION
NOW OPEN

ACCELERATING THE VALUE


CHAIN OF ASIAS DYNAMIC
GAS MARKET

Wednesday 26 October Thursday 27 October Thursday 27 October Thursday 27 October


2016: OPENING 2016: COMMERCIAL 2016: TECHNICAL 2016: SPECIAL JAPAN
PLENARY STREAM STREAM FOCUS SESSION
The Regional Market Country Focused Gas & LNG Distribution Changes in Japans
Outlook for Asia: Session South Korea and Technology Energy Market Structure
Future Forecasts for
Country Focused Operations of Small- Pricing Mechanism in
Gas & LNG
Session China Scale Producers Japan Compared to
Bridging the gap Accessing Large-Scale Other Markets
Country Focused
between large and small Markets and Vice Versa
Session Indonesia LNG Trading Evolution
scale LNG players
Extending Life of LNG in Japan Demand
The Role for Gas
New Horizons for Gas Facilities and Supply Movements
& LNG in Marine
in a Low-Carbon, Post (Procurement, Trading
Transportation: Dawn Large to Small
COP 21 World and Transportation)
of a Major New Era? Scale Offshore and
Trading, Origination & Deepwater Gas and
Future Markets &
Pricing Updates: LNG LNG Developments and
Opportunities in Gas-
as the New Global Technologies
Fired Power Generation
Commodity?
Process and Plant
Raising Capital and Design Optimisation
Delivering Gas &
LNG Projects in Tight
Economic Times

Welcome Networking
Closing Networking Reception
Reception

FRIDAY 28 OCTOBER 2016 | POST-CONFERENCE WORKSHOP

GOLD SPONSOR: SILVER SPONSORS: BRONZE SPONSORS: ASSOCIATE SPONSOR:

For more details about the event, please call +65 6422 1475, email
info@gasasiasummit.com or visit www.gasasiasummit.com/lngindustry-1
PUMP &
TURBOMACHINERY
equipment review

plant and machinery productivity, simultaneously ensuring meeting these challenging conditions ensures an accurate
compliance with increasingly stringent safety, security and fluid dynamic design, a broad operating range, minimum
environmental standards. This also affects the LNG market. pressure loss, and maximum efficiency.
Siemens recent acquisitions of Dresser-Rand and the Elliott Group and the Linde Group cooperate in targeting
aeroderivative gas turbine product portfolio from the small to mid scale LNG market. Both partners have
Rolls-Royce Energy broadened its LNG portfolio and developed a highly standardised and modularised concept for
encompasses power plant components, compressors and the the main refrigerant cycle compression section of Lindes
necessary drive systems, E-houses, prefabricated modules, StarLNG plants ranging from 0.2 million tpy to
automation and digitalisation solutions, and service offerings. 1.3 million tpy. This initiative allows Elliott Group and
Furthermore, a dedicated team for the LNG market simplifies The Linde Group to combine excellent quality with
client contact. competitive pricing and attractive delivery times.
The large number of options available for Siemens LNG
clients means that there is greater opportunity to select the
most suitable solution for their projects, especially in gas
Fives
turbine-driven compression, where reliability and availability are
critical. Amongst the entire gas turbine portfolio, the compact F ives Cryomec Vertical Sealless Motor Pump (VSMP) is
a fully capsulated cryogenic pump designed to handle
hazardous gases. It is mainly used in ATEX areas for process or
design and high efficiency of the Industrial Trent 60 gas turbine
is an excellent drive system for larger-size LNG plants. The transfer applications.
SGT-750 industrial gas turbine, meanwhile, is an exellent option This equipment can withstand dry running conditions due to
for small to medium size plants. Innovations in compression the absence of a seal system between the cryogenic and motor
technology, rotor dynamics, head capacity, and efficiency per parts. It is also entirely safe when pumping dangerous liquids.
compression section provide incremental production gains that The bearings, which are located in the gas phase section
are important to on and offshore LNG operators. and are lubricated with mineral grease, are designed to be
These highly efficient products help to reduce operating able to take over 50 000 hr of duty.
costs over the lifecycle of the equipment. The pumps are located outside of the tanks, and are
therefore easy to maintain. Moreover, they are designed to
run a minimum of 16 000 hr before requiring service, as
Ebara International Corp. friction and wear are reduced to the minimum. Available in
Ebara International Corp., Cryodynamics Division (EIC Cryo) single-stage or multi-stage design, the Cryomec VSMP is
manufactures cryogenic pumps and expanders for the global adapted for intermittent and/or process activity. Fives is also
LNG industry. With over 40 years of continuous engineering able to provide classified versions by the main marine
innovation, the companys machines incorporate engineering organisations (ABS, Lloyds Register or DNV GL).
and technological advancement, delivering dependable and
efficient equipment.
EIC Cryo has expanded its traditional product line into
Hitachi
developing markets to support new requirements and
applications for the LNG industry, such as fixed and mobile H itachi has manufactured over 4000 compressors,
including 1400 sets of the centrifugal type, over the
past 100 years. Its clients can benefit from an in-house
fuel stations, small scale, various marine and floating projects,
skids and customised packaging solutions. design automation (CAD) system, high performance and
EIC Cryo also offers its customers complete global service high efficiency impellers and vaned diffusers, and the
packages, including service engineering and parts support, implementation of sophisticated rotor dynamics analysis
training, and customised research. and high pressure compressor deign. The company utilises
advanced technology to reduce initial and operational costs

Elliott Group

E lliott Group has been a leading supplier of highly efficient,


technically advanced centrifugal compressors for
baseload LNG plants since the beginning of the commercial
LNG market in 1964. More than 100 Elliott compressors are
operating around the world today in LNG plants with over
70 million tpy of capacity.
Elliotts reliable compressor technology is capable of
handling the temperature extremes encountered in
liquefaction applications, such as propane and mixed
refrigerant (MR) services. Propane refrigeration applications in
LNG service pose extreme process demands. These
applications generally entail high molecular weights, low
temperatures, and variations in volumetric flows. Large Installation of an Elliott high pressure, mixed refrigerant (MR),
volume side-streams are common. Elliotts experience in barrel compressor in Russia.

62 AUGUST 2016
PUMP &
TURBOMACHINERY
equipment review

for compressor installations. The company manufactures most with a seal gas system, a remote control panel and
compressor applications in the liquefaction process, including programmable logic controls to be used for gas processing.
mixed refrigerant (MR) compressors, feed gas compressors, LAT turboexpander configurations include
end flash gas compressors, regeneration gas compressors, and expander-compressor, expander-generator, expander-dyno
boil-off gas (BOG) compressors. (brake) units and expander-compressors with active magnetic
bearings in the 3 kW to 14 MW range, capable of handling up
to 3000 PSIG pressure, and temperatures between -195C and
Ingersoll Rand 260C. The company also provides aftermarket parts, design

I ngersoll Rand is an experienced manufacturer of multi-stage,


integrally geared centrifugal compressors. Established
in 1955, its factory in Buffalo, New York, US, has produced
and global field service.

over 14 000 compressors for a wide range of applications Nikkiso Cryo Inc.
throughout the world. This includes many compressors for LNG
applications and processes, such as single mixed refrigerant
(SMR) cycle, nitrogen refrigeration cycle, fractionation, and
N ikkiso Cryo Inc. (NCI), located in Las Vegas, Nevada, US,
has been a leading supplier of cryogenic submerged
electric motor pumps used in the LNG industry for more than
fuel gas boosting, where equipment reliability is of paramount 30 years. With designs available for small and mid scale
value. applications, to large high flow export pumps, to high pressure
Ingersoll Rand has a proven record of designing and designs for send-out applications, NCI can match performance
manufacturing integrally geared, centrifugal compressors that to any submerged cryogenic pump needs.
provide long-term quality and as-promised performance. Its NCIs innovative designs have resulted in the first
capability to build custom-engineered compressors (MSG application of high pressure pumps for use on regasification
product line) or to package standard compressor designs LNG carriers, compact high flow pumps for the worlds
(TURBO-AIR product line) in accordance with American largest floating production, storage and offloading (FPSO)
Petroleum Institute (API) standards 617 and 672 make vessel under construction, as well as compact, high speed
Ingersoll Rands technology an excellent fit for process and pumps used for a variety of LNG, LPG and other applications.
instrument air applications in LNG applications where, among NCIs original technologies have led to an increase in
other things, high efficiency, 100% oil-free gas, and reliability, with submerged motor cryogenic pumps operating
round-the-clock operation are required. up to 40 000 hr before maintenance is required.
NCI recently acquired the JC Carter cryogenic pump
company and is able to provide aftermarket services and parts
L.A. Turbine Corp. for all existing JC Carter pump users. The technology developed

L .A. Turbine (LAT) delivers innovative turboexpander design,


manufacturing and testing of application-specific, highly
engineered turboexpanders used in hydrocarbon processing
by JC Carter is being merged with the NCI design and will result
in an advanced design that not only provides high reliability,
but high efficiency and low pumpdown capabilities.
and other power generation/recovery or refrigeration.
This year, LAT produced its 100th turboexpander
LAT 560EC. The ethylene processing unit is a two-stage L3000 Schott
turboexpander-compressor with active magnetic bearings
(AMB) and common seal gas system mounted on a common
skid. Adding to LATs unit total are 11 more turboexpanders
E lectrical terminal headers are important components of
cryogenic submerged pumps and turbine expanders. They
serve as gas-tight and pressure-proof isolation elements and
designed for petrochemical processing, LNG and dew point simultaneously need to reliably transmit electrical power or
control to be installed in Europe, Asia, Africa and the US. Among data.
these is LAT 562EC, a single AMB turboexpander-compressor The seals of the terminal headers electrical connections
represent a potential weak point, yet the components must
withstand difficult environmental conditions on a long-term
basis and remain absolutely leak-tight. To design and
produce its Eternaloc feedthroughs, Schott relies on
non-ageing materials and special glass-to-metal sealing
technology, with glass acting as the electrical insulator and
hermetic seal.
High-performance glass-to-metal sealing technology is
also the standard technology in other safety-critical and
harsh-environment applications. For example, more than
12 000 glass-to-metal sealed electrical penetration assemblies
from Schott have been installed in approximately 100 nuclear
power plants worldwide since 1962 as leak-tight penetrations
Ingersoll Rand a three-stage, MSG-8, API 617, mixed refrigerant for power, control and instrumentation cables through the
(MR) compressor serves the main cryogenic heat exchanger containment structure. All of them are performing
refrigeration loop in a liquefaction process. maintenance-free since the date of installation.

AUGUST 2016 63
PUMP &
TURBOMACHINERY
equipment review

Schott has over 30 years of experience in the development This is just one example of how Simms redesigns can boost
and production of LNG terminal headers and also possesses liquid production and efficiency levels in turboexpanders.
know-how regarding the required explosion-proof certifications,
such as ATEX and IECEx, as well as other local regulations.
TMEIC
Simms T oshiba Mitsubishi-Electric Industrial Systems Corp. (TMEIC)
has supplied large motors and variable speed drives to

S imms is a cryogenic turbomachinery design and


manufacturing company that provides high quality
turbomachinery equipment, parts and service.
the LNG industry for more than 25 years. TMEIC installations
worldwide include compressor drives in major LNG projects in the
US, Australia, Qatar, Indonesia, and Papua New Guinea, where the
Its X Series redesign boosted one of its customers liquid company is able to offer high reliability and on-time delivery.
production by 130%, while staying within the original physical The companys two-pole synchronous motors will deliver up
envelope. While the original equipment manufacturer (OEM) to 134 000 hp (100 MW), with variable speeds up to 6500 rpm, for
design was sufficient in the 1970s, the new levels of analysis large compressor drives. Voltages up to 13.8 kV are available, and
afforded by modern day computer programs and design internal pressurisation for explosion protection. The company also
techniques resulted in efficiency levels 14 18% higher for the offers induction motors with power levels up to 27 000 hp
expander and 14 24% higher for the compressor. (20 MW) and speeds up to 12 000 rpm powered by variable
To boost efficiency, the company needed its redesigned frequency drive.
X Series to run with a compressor impeller tip speed of TMEIC also supplies reliable large scale variable frequency
1700 ft/sec. a 98% increase from the original 885 ft/sec. OEM drives. The company sizes its large drives using power bank
design. Rotational stress increases by the square of the tip speed, modules that allow the maximum power to be delivered with the
so the company utilised a unique tri-lobed polygon shaft-to-wheel smallest footprint and highest availability. These water cooled
locking design with titanium-backing hub. Compared to a 40 000 hp (30 MW) power banks can be run in parallel to produce
traditional locking key design, the tri-lobed polygon more equally up to 160 000 hp (120 MW) of power to the motor. The variable
spreads the torque with less high stress concentration points. The frequency drive is used to smoothly start the motor and allows
titanium-backing hub locates the wheel securely to the shaft the compressor speed to be adjusted to meet changing process
when materials expand during operation. needs.

ABS 16
ADINDEX Kobelco Compressors America, Inc. IBC

Braemar Engineering 13 Koch-Glitsch 19

CB&I 07 Linde Engineering North America Inc.


IFC
Chart Industries 09
ADVERTISERS INDEX

LNG Industry 46 & 58


Corban Energy Group 15
Nikkiso Cryo 57
CWC 17th World LNG Summit 54
Oeltechnik 25
Dresser-Rand, a Siemens Business 41
Pittsburgh Corning 02
Elliott Group OFC & 37
Quorum OBC
Fives 53
Schott 45
Gas Asia Summit 61
Sulzer Chemtech 04
JLA Loading Technology 21 Tank Storage Asia 46

LNG Industry is audited by the Audit Bureau of Circulations (ABC).


An audit certificate is available on request from our sales department. www.lngindustry.com
64 AUGUST 2016
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+1-713-655-0015
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