LNG March 2019

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March 2019

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ISSN 1747-1826

CONTENTS
03 Comment 65 Monetising stranded gas with
micro scale LNG
MARCH 2019

04 LNG news Michael Walhof, Siemens, USA, outlines the growing number of
opportunities developing in the micro scale LNG market.

14 An LNG consuming giant 69 Taking control


Peter Kiernan, EconomistbIntelligencebUnit, Singapore, reviews China’s status, Soili Städter, ValmetbAutomation, Finland, presents the system that is
growth and current activities in the LNG industry. helping to control operations at the Manga LNG terminal in Finland.

19 Outside-in risks for LNG storage 72 US LNG: changing the industry


Doug Miller, McDermott-CB&I Storage Tank Solutions, USA, explores the Eben Burnham-Snyder, Cheniere, USA, looks at the growing role of the US in
risk assessment implications of outside-in scenarios created by changing the global LNG industry.
storage concepts.

25 Seals for safety 78 A new game plan


Neil Smallwood, FTI Group, UK, explains how to avoid cost overruns and
Thomas Göttlinger, SCHOTT, Germany, explains how terminal headers with a delays on large LNG construction projects.
double glass-to-metal seal contribute to the safety of LNG tanks.

29 Don’t crack under pressure 83 Canada has the answer


Susannah Pierce, LNG Canada, discusses the LNG Canada project in
Brett Bockeloh, USA, and Jean-Paul Boyer, UK, EmersonbAutomation British Columbia, and explains how global climate change can be addressed
Solutions, look at the importance of using the right valves to prevent by exporting LNG from Canada.
accidents related to LNG tank overpressure.

34 A lifeline for stranded communities 87 The path to ROI


Javid Talib, Black &bVeatch, USA, discusses how trendlines are pointing up as
Cameron Dunn, Arup, USA, describes how smaller, prefabricated tanks could FLNG demonstrates its advantage as a low-risk path to return on investment.
help island nations and remote regions transition to cleaner, cheaper and
more secure energy.
89 Laser precision measurement
W. Scott Sutherland, SpectraSensors, Inc., an Endress + Hauser company,
39 LNG-fuelled shipping goes large USA, discusses improved metrology in the chemical composition of LNG
scale using Raman spectroscopy.
Adnan Ezzarhouni, GTT, China, and Martial Claudepierre, Bureau Veritas,
China, discuss the main technical features of the world’s largest dual-fuel
vessel program: the ultra large LNG-fuelled container vessels and their
95 More than a pipe dream
Jean-Pascal Biaggi, TechnipFMC, France, presents cryogenic pipe-in-pipe
bunkering counterparts.
technology as a cost-effective solution for the LNG industry.

43 The perfect combination 99 LNG 2019 preview


Ralph Weiland, OptimizedbGas Treating, Inc., discusses the process of
LNG Industry previews a selection of companies
p es that will be exhibiting at
removing CO2 from LNG using piperazine-MDEA solvents.
019 in Shanghai, China (01 – 05 Apri
this year’s LNG 2019 April 2019).

47 Achieving efficient LPG


PG extraction 112 15 facts on... China
Yasuyuki Yamamori, Toyo Engineering Corp., Japan,
n, discusses the features of
res the two columns process
a new LNG fractionation technology, and compares
with single column processes. ON THIS MONTH’S
MONTH COVER
52 The need for speed
Russell Brown, Orbital Gas Systems Ltd, UK, describes
ibes an alternative,
able of measuring
faster method for LNG energy determination, capable Cheniere is the leading
lea producer
gas properties on a continuous basis. and exporter of US LNG, reliably
providing a clean, secure
s and
60 On auto pilot affordable solution to the growing
Fiona Cain, Haynes and Boone CDG, LLP, UK, looks at global need for natural
nat gas.
advances in autonomous shipping, and lessons for the Cheniere is a full-service
full-se LNG
LNG shipping industry.
provider, with capabilities
capab that
include gas procurement
procurem and
transportation, liquefaction,
lique vessel
chartering and LNG delivery.
d

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nt.
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DAVID ROWLANDS
DEPUTY EDITOR

COMMENT
nd so LNG 2019 has finally arrived. The

A triennial event now alternates between


exporting and importing countries, landing
in Shanghai, China, on 01 – 05 April for this
year’s incarnation. China’s role in the global LNG market
is constantly growing, and so the event could not land
increased use of gas. As Kiernan explains in his article,
“China’s 13th Five Year Plan for Energy Development
aims to increase the proportion of natural gas in the
energy mix to 10% in 2020, rising to 15% by 2030
in the Far East at a better time. (currently, gas’ share is approximately 7%). For the
As Peter Kiernan of the Economist Intelligence Unit power sector, China also aims to reach 100 GW of
(EIU) discusses in his article starting on p. 14, China has natural gas fired power capacity by 2020 (up from
become an LNG consuming giant in a relatively short 67 GW in 2016).”
amount of time. In fact, despite the fact that the country As I touched upon in my last comment, the shape
only started importing LNG in 2006, Kiernan claims that of the LNG industry is undoubtedly undergoing some
it will also become the largest importer of LNG at some significant changes. The US and Canada are continuing
point in the next decade. to start up liquefaction and export facilities, and
In addition to this, China is also expected to Australia is battling it out with Qatar for the top
overtake Russia as the second largest consumer of gas exporter title. China’s place in this conversation is
overall in the 2030s. crucial. After all, with a population of approximately
Fittingly, the last incarnation of the event was held 1.3 billion, an equally enormous amount of gas will
in Perth, Australia, which is China’s main supplier of be required to keep the economy moving smoothly,
LNG. With a number of projects coming online in the especially as dependence on coal is gradually reduced.
last few years, much of Australia’s LNG is now being As with anything, there will undoubtedly be a
directed towards China, not only Japan. number of challenges for China to overcome in the next
Although Japan has been the world’s number one few years as it seeks to increase its LNG imports, but
importer of LNG for a number of years, nuclear restart it will certainly be interesting to see how it plays out.
operations following the Fukushima disaster in 2011 are In the meantime, LNG 2019 will provide an excellent
now meaning that gas imports are forecast to be stable opportunity for industry professionals to make new
at best. China, meanwhile, continues to surge forwards. connections, share ideas and attend talks, many of
It is not only a rapidly growing economy that is which will undoubtedly touch upon the role of China.
fuelling the requirement for increased gas imports, We hope you enjoy this latest issue of LNG Industry
however. In fact, in an effort to decrease dependence magazine. Please feel free to stop by the LNG Industry
on coal, the Chinese government is encouraging the stand at booth 3348 and meet the team.

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LNGNEWS
USA
Singapore FERC grants authorisation
SLNG terminal now ready to for Calcasieu Pass LNG
receive small LNG ships and associated pipeline
ingapore LNG Corp. Pte Ltd (SLNG) has successfully completed enture Global LNG Inc. has announced that
S modifications to its secondary jetty at its terminal on Jurong Island,
and it is now able to receive and reload small LNG ships between
V the US Federal Energy Regulatory Commission
(FERC) has issued the order granting authorisations
2000 m³ and 10 000 m³ in capacity. under Sections 3 and 7 of the Natural Gas Act for the
This new small scale LNG facility, completed on 13 February 2019, company’s Venture Global Calcasieu Pass LNG export
will help spur the development of the small scale LNG market in facility and associated TransCameron Pipeline in
various forms. For example, in the supply of LNG to isolated power Cameron Parish, Louisiana.
plants in remote areas in the region, or in the delivery of LNG as In a joint statement, Co-CEOs Bob Pender and
bunker fuel to ships in the Port of Singapore. Mike Sabel said: “With our FERC order in hand and
The SLNG terminal’s secondary jetty was originally designed our project contracted with binding 20-year sale
to accommodate LNG ships of 60 000 m³ to 265 000 m³ in size. and purchase agreements (SPAs) with Shell, BP,
In June 2017, SLNG successfully performed a gas-up/cool-down Edison S.p.A., Galp, Repsol and PGNiG, we plan to
and reload operation for the 6500 m³ LNG bunker vessel, Cardissa. immediately commence construction activities in
Following on from that success, and to better support small scale Louisiana in close coordination with FERC and other
LNG and LNG bunkering, SLNG has taken the initiative to commence agencies.
modification works to its secondary jetty so that even smaller LNG “This milestone is the culmination of years of
ships can reload at the terminal. The modifications include the effort, and we are proud of the excellent work done by
installation of a new marine loading arm and gangway, and new our regulatory, environmental, legal and engineering
facilities for securing small LNG ships at the jetty. teams. We are excited to begin construction of our
Sandeep Mahawar, Interim CEO and Vice President (Commercial) Calcasieu Pass project and deliver low-cost LNG to our
of SLNG, commented, “We believe that there is good potential for global customers in 2022.”
the small scale LNG market to flourish in this part of the world, The facility has a nameplate capacity of
and the timely completion of the [small scale LNG] facility is an 10 million tpy, and will employ a comprehensive
important step forward in SLNG’s efforts to support this growth. It also process solution from GE Oil & Gas LLC (part of
serves to promote the development of LNG bunkering in Singapore, Baker Hughes, a GE company) that makes use of
which is another potential growth area given Singapore’s already mid scale, modular, factory-fabricated liquefaction
well-established reputation as the top bunkering port in the world. trains. Venture Global claims that it has executed an
As demand builds and there is a viable business case, SLNG may integrated turnkey EPC contract with Kiewit to design,
consider installing topsides at its tertiary jetty to accommodate more engineer, construct, commission, test and guarantee the
[small scale LNG] reloads.” Calcasieu Pass facility.

France
SHI places LNG carrier tank order with GTT
TT has received an order from vessel is scheduled for 1H21.
G Samsung Heavy Industries (SHI) for the tank
design of a new 174 000 m³ LNG carrier, on behalf of
Philippe Berterottière, Chairman and CEO of GTT,
declared: “We are pleased to be entrusted by our
the Danish shipowner Navigare. partner of excellence SHI to accompany the shipowner
The tanks of this unit will be fitted with the Navigare in its entry into the LNG world on its first
Mark III Flex membrane containment system. The LNGC project.”

4 March 2019
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LNGNEWS
USA
United Arab Emirates
Tellurian and Petronet
Kanfer and ADNOC sign MoU regarding
sign small scale LNG Driftwood LNG
cooperation scheme
ellurian Inc. has announced that it has signed

K anfer Shipping has announced that it has


signed a small scale LNG cooperation scheme
T a Memorandum of Understanding (MoU) with
Petronet LNG Ltd INDIA (PLL), wherein PLL is exploring the
with ADNOC Logistics & Services. possibility of investment in the proposed Driftwood LNG
According to the statement, cooperation project, which includes a proposed LNG terminal, along
under the agreement will include potential with natural gas production, gathering, processing and
transportation, storage (onshore/offshore), transportation facilities.
bunkering and other LNG infrastructure. Both President and CEO Meg Gentle said, “Petronet is India’s
parties are currently jointly developing a number largest LNG importer, operating [20 million tpy] of receiving
of projects. ADNOC L&S will have an influential terminal capacity with an additional [2.5 million tpy] of
role in the project and the commercialisation capacity under construction at its Dahej expansion and a
process. The focus area for this cooperation further [5 million tpy] proposed at Gangavaram. We support
will be pure transportation, gas-to-power and Petronet’s vision to be a key energy provider to India and
bunkering projects. look forward to delivering clean, low-cost and reliable
Stig A. Hagen, Managing Partner in natural gas from Driftwood LNG.”
Kanfer Shipping, said: “We are proud to have Driftwood LNG is a proposed 27.6 million tpy liquefaction
ADNOC on board in this cooperation. We clearly export facility that will be located near Lake Charles,
see that large and small scale LNG goes hand Louisiana, on the US Gulf Coast, and Driftwood Pipeline is
in hand, and we believe there are considerable the 96-mile proposed pipeline connecting to the facility.
synergies that could be achieved between the Driftwood LNG and Driftwood Pipeline have received the
parties. With ADNOC’s know how, experience and final environmental impact statement (EIS), and Tellurian
interest in developing the small scale LNG market, expects to make a final investment decision and begin
we are confident that we will be successful.” construction in 1H19.

News Highlights

X US FERC reaches
breakthrough on LNG certifications
X Repsol and Brittany Ferries sign LNG
supply deal
X Milestone loading recorded at Klaipeda LNG
reloading station
Visit our website for more news: www.lngindustry.com
6 March 2019
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© ConocoPhillips Company. 2019. All rights reserved.
LNGNEWS
USA Australia
Air Products wins contract Newcastle LNG developer
for Golden Pass LNG export secures partnership with
project Hyundai LNG to advance
FSRU projects
ir Products has signed an agreement to provide
A its proprietary LNG technology, equipment and
related process licence to Golden Pass Products LLC – a E PIK Co. Ltd – an LNG project development
company – has announced that it has
joint venture (JV) between Qatar Petroleum and ExxonMobil for signed a strategic partnership agreement with
the Golden Pass LNG project in Sabine Pass, Texas, US. Hyundai LNG Shipping Co. Ltd.
Air Products will provide its proprietary AP-C3MRTM According to the statement, the agreement lays out
natural gas liquefaction technology and equipment, as well a framework for the two companies to work together
as three of its MCR® main cryogenic heat exchangers, to be in the development of FSRU projects across the world,
installed at the heart of the proprietary propane precooled including, but not limited to, EPIK’s recently announced
mixed refrigerant liquefaction process for the three-train Newcastle LNG floating storage and regasification
facility. Air Products’ technology will be integral in producing unit (FSRU) import project at the Port of Newcastle in
approximately 16 million tpy of LNG, and will be operational Australia.
when the facility starts up in 2024. In December last year, EPIK publicly announced its
According to the statement, the Air Products’ LNG heat Newcastle LNG project at the Port of Newcastle. The hub
exchangers and related equipment for the project will be built at is critical to NSW’s future security and reliability of gas
the facility in Port Manatee, Florida. This facility was first opened supply, and will include a 170 000 m3 class newbuild
in January 2014. In October last year, the company dedicated a FSRU and associated onshore infrastructure, with a
new LNG equipment test facility and held a ground-breaking for combined potential investment estimated to be between
a facility manufacturing expansion project at the site. US$400 million and US$430 million.
Dr. Samir Serhan, Executive Vice President at Air Products, In addition to the import terminal, EPIK claims
said: “We are committed to always providing the best-in-class that it is looking into the possibility of additional gas
equipment and technology to the LNG industry, to never related infrastructure that would be of benefit to the
missing a delivery, and to exceeding all customer expectations NSW region, including potential gas-fired power and LNG
in terms of performance and efficiency. We want customers bunkering facilities. EPIK expects to place an order for
in the LNG market around the world to know that we are the FSRU newbuild with a shipyard subject to receiving
prepared and not limited in our manufacturing capability when regulatory approvals for the project, which the company
new LNG plant opportunities are announced and developed.” is currently estimating to receive by early next year.

13 - 15 March 2019 29 - 30 April 2019 21 - 23 May 2019


Australasian Oil & Gas 5th International LNG Canada Gas & LNG Exhibition
Exhibition & Conference Congress & Conference
Perth, Australia St. Julian’s, Malta Vancouver, Canada
https://aogexpo.com.au/ https://lngcongress.com/ https://canadagaslng.com/

01 - 05 April 2019 06 - 09 May 2019 17 - 19 September 2019


LNG2019 OTC 2019 Gastech
Shanghai, China Houston, Texas Houston, Texas
https://www.lng2019.com/ http://2019.otcnet.org/welcome https://www.gastechevent.com/

8 March 2019
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Canada
LNGNEWS
Bear Head LNG signs agreements
Mozambique
with unions and Assembly of
Nova Scotia Mi’kmaq Chiefs Anadarko signs LNG SPA
iquefied Natural Gas Limited (LNG Limited) has
with Pertamina
L announced that, through its 100% owned project
company, Bear Head LNG Corp. Inc., it has signed agreements A nadarko Petroleum Corp. has announced that
Mozambique LNG1 Co. Pte. Ltd – the jointly owned
with the Assembly of Nova Scotia Mi’kmaq Chiefs and the sales entity of the Mozambique Area 1 co-venturers
Nova Scotia Construction Labour Relations Association Ltd and – has signed an LNG sales and purchase agreement
Cape Breton Unions. (SPA) with Pertamina.
According to the statement, Bear Head LNG signed a mutual According to the statement, the SPA is for
benefits agreement with the assembly. Entering into this benefit 1 million tpy for a 20-year term.
agreement shows commitment by both sides to develop the project Mitch Ingram, Anadarko Executive Vice President,
in an environmentally sustainable manner. International, Deepwater & Exploration, said:
According to the statement, Bear Head LNG has also “Indonesia is expected to be one of the fastest
announced the signing of a project labour agreement with the growing natural gas markets in Asia and Pertamina,
Nova Scotia Construction Labour Relations Association Ltd and the national energy company of Indonesia, will play
Cape Breton Unions. Reportedly, the labour agreement ensures a key role in meeting Indonesia’s long-term energy
a stable work environment for the development of Bear Head’s needs.
proposed LNG facility on the Strait Canso in Richmond County, “The Anadarko-led Mozambique LNG project is
Nova Scotia. well positioned to make a sanctioning decision in
LNG Limited claims that the labour agreement governs the the first half of this year, as we remain on track to
terms of employment for employees represented by the unions at complete the project financing process, secure the
the Bear Head LNG facility. Bear Head LNG and the unions will work necessary approvals, and have executed a sufficient
alongside one another in order to support positive labour relations volume of long-term SPAs, which now total more than
and conditions, including a diverse, safe, efficient and respectful 9.5 million tpy. We are extremely pleased and grateful
work environment. According to the statement, the labour agreement to Pertamina for selecting Mozambique LNG to be part
also gives priority to qualified residents of Cape Breton Island and of its long-term energy portfolio.”
mainland Nova Scotia. Anadarko is developing the first onshore LNG
Bear Head LNG is proposing to construct an LNG facility on facility in Mozambique. It will consist of two initial
the naturally deep waters of the Strait of Canso in Point Tupper, LNG trains with a total nameplate capacity of
Richmond County. The proposed facility will reportedly consist of an 12.88 million tpy to support the development of
initial development of an 8 – 12 million tpy facility, with the capacity the Golfinho/Atum field located entirely within
and approvals for further expansion. Offshore Area 1.

Singapore
Pavilion charters LNG bunker vessel
avilion Energy has announced that it has chartered was awarded to Pavilion Energy under the Maritime and
P its first LNG bunker vessel to supply LNG in the
Port of Singapore.
Port Authority of Singapore’s (MPA) LNG Bunker Vessel
Co-Funding Grant. This grant will be put towards the
The 12 000 m3 GTT Mark III Flex membrane LNG bunker construction of the dual-fuel vessel. It will be constructed by
vessel will be the largest LNG bunker vessel for use in the Sembcorp Marine at its shipyard in Singapore for delivery by
port to date. It will be owned by Mitsui O.S.K. Lines Ltd (MOL). early 2021. The vessel will include a state-of-the-art hull with
MOL will be collaborating with Sinanju – a local bunker twin membrane LNG cargo tanks for more efficient boil-off
operator in Singapore – to manage the LNG bunker vessel. gas (BOG) management. It will meet requirements as an LNG
According to the statement, the S$3 million grant feeder and bunker tanker for both coastal and short-sea trade.

10 March 2019
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Mozambique/Senegal
LNGNEWS
USA
Golar LNG enters agreement to Pointe LNG signs
supply FLNG unit to BP agreement with KBR
olar LNG Ltd’s newly incorporated subsidiary, Gimi MS Corp., regarding US LNG facility
G has entered into a 20-year lease and operate agreement (LOA)
with BP for the charter of the Gimi floating LNG (FLNG) unit to ointe LNG LLC has signed an engineering
service the Greater Tortue Ahmeyim project.
Gimi is expected to begin production in 2022. It will liquefy
P and technical services agreement with
KBR to provide Pointe LNG with front-end
gas as part of the first phase of the Greater Tortue Ahmeyim engineering and design (FEED) submittals and
project and will be located at an innovative nearshore hub located services as required to obtain approval from the
on the Mauritania and Senegal maritime border. It is designed to Federal Energy Regulatory Commission (FERC) for
produce approximately 2.5 million tpy of LNG on average using the Pointe LNG’s proposed liquefaction and export facility
Black & Veatch PRICO® liquefaction process. Total gas resources in in Plaquemines Parish, Louisiana, US.
the field are estimated to be around 15 trillion ft3. James Lindsay, Pointe’s co-founder, said: “We are
Concurrent with its entry into the LOA, Gimi MS has entered pleased to have KBR, a global EPC LNG contractor, as
into a subscription agreement (subject to certain closing a partner, and this strategic agreement is an important
conditions) with First FLNG Holdings Pte. Ltd – an indirect step in the development of our project. We are thrilled
wholly-owned subsidiary of Keppel Capital – in respect of their about the opportunity to add KBR’s decades of LNG
participation in a 30% share of the FLNG unit. According to the experience on board as we bring Pointe LNG to market.”
statement, Gimi MS will build, own and operate the FLNG vessel, Farhan Mujib, KBR President, Hydrocarbons Delivery
while First FLNG Holdings Pte. Ltd will subscribe for 30% of the Solutions, added: “KBR is pleased to be working with
total issued ordinary share capital of Gimi MS for a subscription Pointe LNG in this key role and contribute to this
price equivalent to 30% of the project cost. The LNG carrier, Gimi, important development in Louisiana.
has been relocated from layup to Keppel Shipyard in Singapore, “KBR’s selection for this work demonstrates
where conversion works are expected to begin shortly. Pointe LNG’s confidence in KBR’s LNG project
The construction of the FLNG unit is estimated to cost experience, leverages our US construction capability
approximately US$1.3 billion, not including financing costs. and provides opportunity for a full service EPC contract
According to the statement, the company is also in the final at a later date.
stages of receiving an underwritten credit commitment for a Assuming that various approvals and contingencies
US$700 million long-term financing facility from a syndicate of are satisfied, including the completion of the FERC
international banks that will be available during construction. pre-filing process, which is expected to take place
Golar’s plan is that, together with other financing facilities, by the by December this year, and Pointe LNG’s receipt of
end of the four-year construction period, the anticipated maximum financing and all necessary permits and approvals,
total equity contribution from the company in respect of its construction is expected to commence in 1Q21. Initial
70% stake will be approximately US$300 million. operations are then expected to start in 1Q25.

South Korea
KOMIPO and Vitol sign LNG MoU
orea Midland Power Co. Ltd (KOMIPO) and 10-year period.
K Vitol Asia Pte Ltd have released a joint statement
claiming that they have signed a memorandum of
Hyung Koo Park, President and CEO of KOMIPO, said:
“KOMIPO looks forward to developing its relationship
understanding (MoU) to explore upstream, midstream with Vitol, our trusted partner in the LNG business.”
and downstream project opportunities in LNG. The CEO of Vitol Group, Russell Hardy, added, “We are
Under an existing long-term supply and purchase delighted to strengthen our partnership with KOMIPO, a
agreement (SPA) that was signed in 2015, Vitol agreed highly well-respected company in the region, and look
to supply KOMIPO with 400 000 tpy of LNG for a forward to working with them on future opportunities.”

12 March 2019
An LNG
consuming
giant

14
Peter Kiernan, hina, a relative latecomer to the global LNG scene, will

Economist Intelligence Unit,
Singapore, reviews China’s
C be the largest importer of LNG at some point in the next
decade, possibly as early as 2025, as the giant Asian
economy continues to emerge as a key global consumer of natural
gas. At some point in the 2030s, China will also surpass Russia
status, growth and current as the second-largest consumer of gas overall, reflecting that
the country’s gas requirement will grow strongly well into the
activities in the LNG industry. longer-term. Due to its diversification strategy, imported LNG will
play a key role in meeting China’s rapidly increasing gas needs,
complementing higher domestic production and additional
pipeline import capacity. As it already is with oil, China is set to
become a significant importer of natural gas, which will have an
impact on the global gas market in general, and the LNG market
in particular.

China’s LNG imports approach


50 million tpy
China began importing LNG in 2006, with the construction
of its first terminal, Guangdong Dapeng, by CNOOC. Just
over one decade later, in 2017, it became the second-largest
importer of LNG globally, surpassing South Korea, by importing
nearly 39 million tpy, second only to Japan, which imported
84.2 million tpy. In the previous year, 2016, China imported just
over 25 million tpy, so in 2017 the year-on year growth in China’s
LNG imports was a massive 56%. Furthermore, China’s LNG

15
imports had already reached 41.6 million t in the first 10 months for imported LNG (and coal) to supply its power sector, which had
of 2018, representing a 43% increase compared to January – increased after Japan’s entire nuclear capacity was taken offline in
October 2017.¹ LNG imports were on track to reach approximately 2011. With China’s LNG demand expected to continue growing, it
50 million tpy for the full year in 2018, cementing China’s position is likely that it will become the largest importer of LNG in the next
as the second-largest importer of LNG, well ahead of South Korea decade, exceeding Japan’s annual volumes. Some in the industry
and rapidly closing in on Japan.¹ have forecast that this could occur as early as the mid-2020s,
given the ramp up in volumes seen in the last few years, and
Heading for top LNG importer the expected strong growth in China’s domestic natural gas
status consumption. Domestic output, although also growing impressively
China accounted for 13% of global LNG imports in 2017, and as well, is not keeping pace with domestic consumption, meaning
this share will rise as the large energy-consuming economy is that the overall level of imports, from both pipelines and in the
expected to import growing levels of LNG, rapidly approaching and form of LNG, will continue to grow.
eventually surpassing Japan’s level of over 80 million tpy. Japan’s
natural gas requirement is likely to remain stable, at best, in the Domestic consumption growing
coming years, due to the restart of some of its nuclear reactors rapidly
that had been shut down after the Fukushima nuclear disaster in According to the ‘BP Statistical Review of World Energy 2018’, the
2011. As a result, the nuclear restarts in Japan will reduce its need average annual growth rate in China’s domestic gas consumption
during the period 2006 – 2016 was 13.7%, exceeding the
Table 1. LNG terminals in China average annual growth rate in domestic production of 8.9%
over the same period.² Between 2007 and 2017, China domestic
Terminal
Start Capacity
Operator Status consumption of gas grew from 71 billion to 240 billion m³, while
year (million tpy)
its domestic production grew from 70 billion to 149 billion m³
Guangdong over the same period. Therefore, over the last decade, a deficit
2006 7 CNOOC Operating
Dapeng of approximately 90 billion m³ has emerged in China’s domestic
Fujian
2009 6.3 CNOOC Operating supply-demand balance, which has been filled by China seeking
Putian
diverse sources imported natural gas, via both LNG and pipeline,
Shanghai
2008 3 CNOOC Operating to meet these needs. In the future, the imbalance will only grow,
Yangshan
with consumption growth continuing to exceed that of production,
Dalian 2011 5.5 PetroChina Operating resulting in China’s import dependence of natural gas increasing
over time. The International Energy Agency, in its World Energy
Jiangsu
Rudong
2011 6.5 PetroChina Operating Outlook 2018, forecasts that China’s gas consumption will grow at
an annual average rate of 4.5% between 2017 and 2040, reaching
Dongguan 2012 1 JOVO Operating nearly 550 billion m³ by then (New Policies Scenario).² Although
this represents a slower growth rate compared to the previous
Zhejiang
Ningbo
2012 3 CNOOC Operating decade, in volumetric terms, China’s gas consumption growth rate
Zhuhai can be expected to remain significant over the next few decades.
2013 3.5 CNOOC Operating
Gaolan
Tangshan
2013 6.5 PetroChina Operating
Clean the air
Caofeidian China’s gas demand is being driving by a combination of factors,
Tianjin in no small part influenced by policy drivers aimed at boosting
2013 2.2 CNOOC Operating
FSRU the role of natural gas in the country’s energy mix, in turn partly
Hainan
2014 3 CNOOC Operating
driven by the aim to wind back dependence on coal. China’s
Yangpu 13th Five Year Plan for Energy Development aims to increase the
Qingdao 2014 5 Sinopec Operating proportion of natural gas in the energy mix to 10% in 2020, rising
to 15% by 2030 (currently, gas’ share is approximately 7%). For
Guangxi
2016 3 Sinopec Operating the power sector, China also aims to reach 100 GW of natural gas
Beihai
fired power capacity by 2020 (up from 67 GW in 2016). There are
Yuedong 2017 2 CNOOC Operating therefore ambitious national-level targets for boosting the role of
natural gas for both power generation and of energy consumption
Jiangsu
Qidong
2017 0.6 Guanghui Operating overall, and indeed China’s National Development and
Reform Commission has established a target for gas consumption
Tianjin
Binhai
2018 3 Sinopec Operating to reach 450 billion m³ by 2030.
Shenzhen
More specifically, China also has a ‘Blue Skies Policy’, which,
2018 4 CNOOC Operating according to the IEA, involved action by the Chinese government
Diefu
to restrict the use of small coal boilers for residential and
Zhoushan 2018 3 ENN Operating
industrial use.² As a result, much of the increase in China’s gas
Guangdong Under consumption, especially last year, has not been coming from the
Yangijang 2019 2
Yudean construction power sector, but rather the residential and industrial sectors. The
Under policy to improve air quality by coal to gas switching in these
Zhangzhou 2022 3 CNOOC
construction sectors was perhaps too successful in that, while it contributed to
Wenzhou 2021 4.1 Sinopec
Under a massive boost in the need for LNG, there was still not enough
construction
gas supply entering the market, resulting in severe price spikes

16 March 2019
and a move by government officials to slow down the transition. when these projects will be realised. In 2017, China imported
While the process of improving air quality through substituting approximately 42 billion m³ of pipeline gas, and this was exceeded
coal with natural gas needs to be smoothed out, over the by LNG volumes. LNG is likely to continue to eclipse pipeline
longer-term, China can expect a greater role for natural gas in its imports, although there will be growth in both as imports overall
economy, which means that policymakers need to ensure that continue to rise.
adequate supplies can reach domestic consumers in all sectors. Currently, China has 18 operating LNG terminals with a total
The role of LNG in this equation will therefore continue to be capacity of approximately 68 million tpy. In 2018, three new
crucial. terminals were commissioned, while another three commenced
construction. There is still some cushion available for additional
Growth in LNG and pipeline LNG imports, although given the growth rate expected in
capacity consumption, additional LNG capacity in China will then need to
China’s strategy to meet its growing gas consumption needs is be added before long. The IEA expects China’s LNG imports to
three-pronged: increase domestic production; expand pipeline reach nearly 70 million tpy by 2023, which would imply a relatively
capacity; and increase the volume of LNG imports. If China’s high utilisation rate for its currently operating terminals –
domestic consumption is to reach 450 billion m³ by 2030, this according to Platts, the utilisation rate was 65% in 2017 – in the
implies that approximately 210 billion m³ of additional supply absence of expanded capacity of existing terminals and significant
needs to be sourced over the next decade from a combination of additional capacity from new terminals put in place by then.³
domestic and imported sources. Although domestic output will China’s growing domestic gas needs will be increasingly met by
continue to grow, we expect the share of imports to take up a LNG supply in the coming years, but, in the longer-term, it will
greater share of China’s gas supply. In 2017, domestic production require additional regasification capacity, especially after the
accounted for approximately 60% of China’s gas supply, but middle of the next decade.
this is expected to fall gradually. China already has substantial
pipeline capacity (approximately 67 billion m³), comprising References
of an extensive pipeline network from Central Asia (Central 1. ‘China’s LNG imports hit record high’, LNG World News,
Asia-China, 55 billion m³), and a smaller network connecting (27 November 2018), https://www.lngworldnews.com/chinas-lng-
China to an offshore Myanmar gas field (12 billion m³). This imports-hit-record-high/.
capacity will expand due to the completion of the Power of 2. ‘BP Statistical Review of World Energy 2018’, 67th edition,
(June 2018), https://www.bp.com/content/dam/bp/en/
Siberia pipeline from Russia (38 billion m³). A planned expansion
corporate/pdf/energy-economics/statistical-review/bp-stats-
of the Central Asia-China network (30 billion m³) and a plan review-2018-full-report.pdf.
to import gas from Western Siberia (38 billion m³) would add 3. Platts, ‘Opportunities and challenges of China’s LNG
another 68 billion m³ to China’s pipeline capacity, but it is unclear expansion’, LNG special report, (March 2018).

LNG
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W W W. S I M M S U S A . C O M
Outside-In
Risks for
LNG Storage Doug Miller, he characteristics, behaviour and risk assessment

McDermott-CB&I Storage
Tank Solutions, USA,
T implications of using single, double and full
containment tanks (defined below) have been
extensively explored for many years. It is well established
that a full containment tank can facilitate acceptable risk
at smaller sites and more congested locations than single
explores the risk assessment containment. However, single containment can be safe and
implications of outside-in economical where space allows.
The introduction of membrane tanks into more codes
scenarios created by changing and standards prompts some new comparisons. Some in
the LNG industry suppose that membrane tanks are simply
storage concepts. another kind of full containment tank, or that they are

19
functionally equivalent. However, that assumption is a containment. This reduces both the area of a spilled pool
potentially dangerous oversimplification of some complex of LNG and the size of any vapour cloud formed in the
issues. The introduction of membrane tanks actually event of inner tank leakage or failure.
requires exploration of the somewhat different release The full containment system consists of an open top
event scenarios associated with these tank configurations. inner tank that holds the cold liquid and is built inside a
Past comparisons have focused on inside-out scenarios closed top secondary liquid container. Both tanks are
wherein a release event (stored gas or liquid escaping independently capable of containing LNG. The closed top
from its normal location) initiates from failure of the secondary container discharges generated vapour through
inner container or barrier. Outside-in scenarios are relief valves in the event of inner tank leakage or failure.
initiated from a breakdown of the outer container and The full containment system evolved from double
have traditionally received much less attention. This may containment. From the traditional viewpoint of inside-out
be because outside-in release event consequences do not release scenarios, it is considered an improvement, since
differ between single and full containment tanks. But the vapour release is controlled.
introduction of new storage concepts give outside-in The membrane tank system evolved from marine gas
scenarios heightened significance. This article presents a carriers. It consists of a thin metallic membrane acting as a
framework for consideration of release scenarios for liquid and vapour tight barrier for the stored LNG together
large scale, onshore tank configurations so that the with load bearing insulation which transfers liquid head
similarities and differences are understood, and project and gas pressure loads to an outer container that provides
risk assessments for tank configuration selection, as all structural functions. A membrane tank possesses one
required by API standard 625, are properly made. structural container. In one concept variation, the outer
container is carbon steel. Such a tank would be surrounded
Storage concept descriptions by a dike similar to that used around a single containment
The main large scale, onshore storage configurations tank. Another concept variation uses an outer container
are briefly described here. The reader will note that the that is capable of containing LNG in the event of an
descriptions are given in the traditional style, which inside-out membrane leakage or failure. That type also
considers only inside-out events. provides vapour control similar to full containment tanks.
The single containment system for LNG typically For double, full and membrane systems, in-tank pumps
incorporates an open top inner tank that holds the cold are used and no piping penetrations through bottom or
liquid. An outer tank protects the insulation and holds shell are permitted. This precludes the possibility of a line
product vapour pressure. The outer tank is not designed to break event emptying the tank. Single containment tanks
withstand the force or the temperature of the cryogenic also sometimes use in-tank pumps.
liquid in the event of leakage from the inner tank. Rather,
this tank system is surrounded by a remote dike to control Risk-based design
liquid in such an event. API 625, Tank Systems for Refrigerated Liquefied Gas
The double containment system for LNG consists of a Storage, section 5 requires the purchaser to conduct a
single containment tank system built inside an open top, risk assessment and consider it in the selection of the
secondary liquid container. The close-in secondary storage concept. All credible release events and potential
container replaces the remote dike used around single for event escalation need consideration. Risk is generally
defined as the probability of an event
multiplied by the impact of the event’s
Table 1. Event consequence level definitions
consequence. The risk assessment
Level Description Danger to process leads to an aggregation of
Public; adjacent properties; facility; risk from the various potential release
Extreme Liquid release / uncontrolled
environment events and scenarios.
Site personnel; facility operation; The probability of release events
High Liquid release / within a dike
environment depends on the characteristics of each
Site personnel; facility operation;
tank and of each site. For example, the
Medium Product vapour release / uncontrolled materials selected, design margins used
environment
and frequency of external hazard events
Low Product vapour release / controlled Facility operation at the site location all influence
probability of a product release. The

Table 2. Inside-out release consequences


Arrangement Consequences
Secondary liquid Liquid release outside of Immediate consequence
Storage tank concept Vapour release
boundary type tank footprint? level

Single containment Remote dike Yes, to remote dike Uncontrolled High

Double containment Containment wall No Uncontrolled Medium


Full containment Outer tank No Controlled Low
Membrane containment Outer tank No Controlled Low

20 March 2019
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Table 3. Outside-in release consequences describe the consequences, and
Outside-in consequences so they need not be repeated
Storage tank concept here. Table 2 simply assigns the
Post event liquid
boundary
Vapour release Consequence level consequence levels.

Single containment with dike Inner tank Uncontrolled Medium


Outside-in event
Double containment Inner tank None None consequences
Outside-in release events
Full containment Inner tank Uncontrolled Medium are cases where a hazard has
caused damage to the exposed,
Membrane containment with dike Remote dike Uncontrolled High outside components of the
storage system. Historically,
Membrane containment No boundary Uncontrolled Extreme
outside-in events have not
received as much attention as
inside out events. That may
Table 4. Consequence summary
be because the outside-in consequences do not
Arrangement Consequences differ between the traditional concepts of single
Storage tank concept Inside-out release Outside-in release and full containment. Membrane containment,
however, has differing consequences. The
Single with dike High Medium
outside-in consequences also depend on more
Double without dike Medium None factors: the storage concept; the type of outside
Full without dike Low Medium failure (leak, puncture, structural failure); which
Membrane with dike Low High
component (wall versus roof); and the extent
of failure (very local versus wide area versus
Membrane without dike Low Extreme
collapse).
For a sufficiently overwhelming blast or
consequences of various release events, on the other impact, all concepts will be equally destroyed, and for
hand, are mainly a function of the storage concept, and sufficiently small damage, all concepts equally have no
so consequences can be outlined as described in this release. More helpful and practical comparisons address
article. major but not overwhelming outside damage. Damage
that results in a loss of structural or containment ability
Hazards of the outer container is considered major.
Risk assessments begin with a list of internal and external Table 3 outlines release consequences for cases of
hazards. Internal hazards include, but are not limited to, major outside damage, and the following descriptions
overfill, thermal shock, workmanship flaws and internal elaborate:
corrosion. Liquid weight and gas pressure loads are also z Double containment would have no release. The
internal hazards. However, those internal loads act on outer container is simply an open top wall containing
the outer container for membrane tanks, while they act nothing. The inner container is independent of the
on the inner container for the single, double and full outer wall and unaffected. Therefore, the consequence
containment tanks. is truly ‘none’.
External hazards typically include wind, snow, fire,
z Single and full containment tanks would have
external corrosion, impacts, blasts and even potential
uncontrolled vapour release if an outside event
terrorist attack. Earthquakes are also considered an
breaches the outer container. But the inner container
external hazard. However, note that the greatest mass is
is independent of the outer container, so LNG would
the internal stored liquid. Its shaking acts on the inner
stay in the inner tank. Uncontrolled vapour release is a
container for single, double and full containment tanks,
‘medium’ consequence.
while it acts on the outer container for membrane tanks.
z Membrane tanks would have a liquid release if the
Event consequences levels outer wall fails because the membrane is entirely
It is helpful to assign levels of significance to release dependent on the outer container for support. Such a
events. Liquid releases are more serious than vapour liquid release would be contained only if a dike exists.
releases because a much greater quantity of methane The consequence level is ‘extreme’ or ‘high’ depending
is generally involved. Uncontrolled releases are more on the existence of a dike.
serious than controlled releases because wider areas are
potentially affected, including public areas outside of Summary table
the facility. An uncontrolled liquid release clearly has the The inside-out and outside-in tables can be merged
greatest significance. Table 1 summarises consequence to provide an overall summary as in Table 4. Note how
level definitions. much the two columns differ. The concepts cannot
be placed in a simple ranked order from lowest to
Inside-out event consequences highest consequence. The order depends on the
Inside-out release event comparisons are familiar. In fact, scenario. Remember also that this table only addresses
the storage concept descriptions provided in Table 1 consequence. The other half of risk is probability. Some

22 March 2019
event scenarios may be more likely than others. That this would be categorised as an ‘extreme’ level
needs project-specific consideration. But even when a consequence.
postulated event has a low probability, if its consequence
is high, then the risk may be very significant. Earthquake example
Now consider the same full containment tank exposed to
Fire example an earthquake significantly exceeding its design basis, or
Consider a full containment tank with a prestressed a case where a serious flaw exists in its construction. The
concrete outer container exposed to a prolonged external loads generated by liquid mass accelerations are applied
fire exceeding its design basis. The outer wall tendons to the inner container. Enough overload would cause
would eventually soften and concrete prestress lost, inner tank distortion and tearing. LNG would then fill the
but there is no liquid load to collapse the wall and gas outer tank. That would generate increased vaporisation
pressure loads are an order of magnitude smaller. The and controlled venting and be categorised as a ‘low’ level
inner tank would be unaffected as long as the outer consequence as illustrated in Figure 1.
tank remained stable. The only release event would Now consider the membrane tank. The loads generated
be some controlled venting due to heat flux from the by liquid mass accelerations are applied to the outer
fire. This venting would be categorised as a ‘low’ level container. Enough overload would cause tendons to
consequence. stretch or fail leading to wall deformation or collapse.
Now consider a membrane tank with a similar Without adequate wall support, the thin membrane would
prestressed concrete outer container during the same tear releasing liquid LNG through the damaged wall.
prolonged fire. The wall’s tendons would similarly soften. Unless a dike is provided, this would be categorised as an
Polyurethane foam load bearing insulation inside the wall ‘extreme’ level consequence.
would also soften and lose bearing capacity. Eventually,
liquid load would substantially deform or collapse the Applying consequences in risk
wall and insulation. Without adequate wall support, the assessment
thin membrane would eventually tear, releasing liquid It is hoped that the above information helps readers
LNG through the damaged wall. Unless a dike is provided, understand that release scenarios are varied and
complex, and that considering only inside-out behaviours
misses important things. However, these scenarios and
consequences are only part of the risk assessment process.
An overall outline of risk assessment includes the following:
z Identifying hazards.
z Identifying potential release events and scenarios.
z Evaluating probability of occurrence of events.
z Estimating consequences (impacts to people, property
and environment).
z Evaluating resulting risk (probability times
consequence).

Assessing the probability of certain hazards and


degrees of damage from them is a project-specific effort.
One way to mitigate unacceptable risk is to design for
more extreme loads where a particular hazard is
contributing too much risk. That leads to designs that are
more robust and reduced failure probability. But a more
effective mitigation may be to utilise a concept having
lower level event consequences.
In addition, the contribution of tanks to the overall risk
assessment for the facility of which they are a part should
be considered. The storage tanks are just one piece of the
facility, albeit a very large and important one. Some facility
risk assessments assign a single value of probability of
catastrophic release from tanks based only on the concept
used. There are references that give such values based only
on inside-out scenarios. That would not result in a safe,
realistic and accurate facility assessment. A proper facility
risk assessment should consider the tank risks of all
important hazards and scenarios, both inside-out and
outside-in. A result will be the right storage concepts used
Figure 1. Illustrations of earthquake damage. in the right facilities and a continuation of LNG’s great
record of safe operations. Everyone benefits from that.

24 March 2019
Seals
Thomas Göttlinger,
SCHOTT, Germany, explains
how terminal headers with
a double glass-to-metal seal

for T
contribute to the safety of
LNG tanks.
he cruise industry is booming. According to experts,
growth is limited more by capacity than demand.
However, the rise of the industry comes with an

safety
environmental impact. A new milestone on the way to
low-emission shipping is the opportunity to use LNG directly
as fuel. The world’s first cruise ship that can run entirely on
LNG, has just gone into regular service: AIDAnova.

Figure 1. AIDAnova, the


world’s first LNG-powered
cruise ship, marks a milestone
in the development of
environmentally friendly
and cost-effective mid and
small scale LNG applications
(source: Herman Ijsseling for
Meyer Werft).

25
The technology of this large vessel built in Germany limit is already 0.5% in China and 0.1% in the rest of the
demonstrates the new possibilities that LNG offers for world.
international shipping lines as an alternative and clean
propellant. With a gross tonnage of over 180 000 t, a length From waterways to country roads
of 337 m and a width of 42 m, the cruise ship can travel for According to the global quality assurance and risk
up to 14 days on a single fuel load. 3620 m3 of LNG can be management company DNV GL, the new regulation will affect
stored in three cryogenic tanks to run four powerful and as many as 70 000 ships. In particular, new vessels built for
efficient dual-fuel motors by Caterpillar. operation in ECAs, ports and inland waterways are likely
Before the gas is liquefied, it is cleaned in several steps to to give LNG more traction, which will be accompanied by
reduce CO2 emissions by 20%, NOx by 80% and particles and increased availability and improved bunker infrastructure.4
SOx by 100%. Using the cleanest fossil fuel available today, The development of land-based applications is also
heat recovery and intelligent energy management, the picking up speed. The power generation market has been
environmental footprint is reduced significantly. Taking the shifting from coal and oil to cleaner fuels, such as solar, wind
lead in green cruising is the goal: eight further LNG-powered and (liquefied) natural gas. Similarly, the transport sector is
cruise ships have already been ordered by Carnival Corp. moving towards alternatives to diesel. In 2017,
Florida East Coast Railway (FECR) became the first
LNG fuels green shipping North American railway to adopt LNG for its entire line-haul
The decisions taken in the cruise sector are likely to have a fleet of 24 locomotives.5
significant impact on the industry as a whole. The current Actually, two-thirds of small scale LNG demand already
fleet of approximately 360 LNG-fuelled and LNG-ready ships comes from heavy-duty vehicles, Dr. Wei Liu from the research
worldwide (excluding LNG tankers and inland waterway and consultancy group Wood Mackenzie reported at the 2018
vessels) is expected to more than double within five years LNG Ship/Shore Interface Conference in London.6 While LNG
and, with the rising demand for LNG, there is growing demand is often viewed as being driven by environmental
confidence to invest in LNG infrastructure and bunker vessels. reasons, it holds appeal for economic reasons too.
In fact, the next wave of global LNG investments is
already underway. With an annual growth of 10% in 2017 to Growth may not come at the cost
290 million t1 and 8.3% in the first half of 2018,2 LNG demand of safety
is rising faster than expected. This is also reflected in the In China, for example, where there is an active fleet of some
growing number of LNG supply locations for ships: 67 are 220 000 LNG trucks, vehicles can potentially work out to be
currently in operation, 26 decided and 38 under discussion.3 30% cheaper than diesel-powered vehicles over the course
One of the driving factors behind the push towards of their working life, Dr. Liu said. Currently, these vehicles
alternative fuels like LNG can be owed to decisive would not be compliant with EU regulations, which are
environmental regulations. By January 2020, the global sulfur more stringent than those in China. However, it could be a
cap set by the International Maritime Organization (IMO) will possibility in future.6
be reduced from 3.5% to 0.5%. This applies to all ships For Gianpaolo Benedetti, Senior Technical Advisor at the
outside the emission control areas (ECAs). Within the ECAs, the Society for Gas as a Marine Fuel (SGMF), strictly controlled
regulations are crucial to secure further growth of the LNG
industry. “The continued safety record of the industry is its
licence to operate”, he said at the LNG Ship/Shore Interface
Conference in London. “The risk is… this sector is based on
safety. There are new players coming into the industry. Not
necessarily all these new players are well prepared.”7
The main threat to its reputation as a safe fuel is LNG
leakage, caused by accident, or an intentional act, such as
terrorism. This would trigger a series of events. The cool liquid
is heavier than air and forms a pool that evaporates into a
cloud. Wind or a structural barrier could lead this cloud to a
source of ignition. And that is when a big fire or explosion
could happen.8

Cryogenic tanks under pressure


Fortunately, in its 50-year history, the LNG industry has proven
its ability to deliver an excellent safety record. However, as the
industry grows, so do the risks as LNG is increasingly stored,
transported, handled and used in densely populated areas.
Figure 2. In order to load or unload LNG, the storage tanks Cryogenic tanks in particular must meet the highest safety
on board LNG vessels contain powerful electric pumps. The requirements. They are often equipped with pumps, as well as
pumps and their motors are mostly integrated into a chassis sensors to monitor the pressure and temperature.
and work completely immersed in liquefied gas. SCHOTT
In order to supply these appliances submerged in
Eternaloc® terminal header assemblies serve as the hermetic
feedthroughs for the three-phase electrical power, as well as liquefied gas inside the tank with electricity and provide
the control and instrumentation signals (source: SCHOTT). data transfer, special electrical feedthroughs, also known as
terminal headers, are required. At the same time, these

26 March 2019
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components must uphold the tanks’ pressure barrier and Certifications
remain leak-proof, even in the event of an accident. A Resilient to thermo-cycling, thermo-shock, and temperature
temperature of -162ºC and gas pressure on the inside, as ranges from -196ºC to 100ºC, the compactly designed
well as varying temperature, pressure and weathering Eternaloc® headers are available in two versions: three-phase
conditions on the outside of the tank wall, place the highest power terminal headers are designed for voltages of up to
demands on the sealing structure of these electrical 13 800 volts and current ratings of up to 1500 amperes.
feedthroughs. Multi-pin control and instrumentation (C&I) feedthroughs are
Yet this is a potential weak point. While feedthroughs with intended for voltages of up to 28 volts and current ratings of
epoxy or ceramic sealings have technological disadvantages up to 4 amperes.
that can lead to leaks and electrical malfunctions over time or Building on extensive R&D and manufacturing expertise,
due to shocks, SCHOTT has developed Eternaloc® terminal SCHOTT has all engineering and testing capabilities in-house,
headers that are equipped with sturdy, non-ageing and also according to IEEE standards. In addition, operational
maintenance-free glass-to-metal seals in a unique qualification and certification processes are handled.
compression technology – a safe and proven solution. Eternaloc headers are explosion-proof and certified according
to the international IECEx scheme and the European ATEX
Dual seal, double safety directive. They can also be certified in accordance with local
The S-Type feedthrough, which SCHOTT introduced at last regulations, such as KOSHA for South Korea, CU TR for Russia,
year’s Gastech as the latest extension to its long-established PESO for India and CSA or UL for the US and Canada. Most
Eternaloc product line, has an extremely compact size. It ship classification rules are also supported.
opens up new possibilities in safety-critical on and offshore An attuned electrical assembly, including conduit, cable,
LNG applications with demanding space constraints. These junction box and cable gland for connecting with the external
include storage and fuel systems for mid and small scale electricity supply, as well as the cryo-cables for use inside the
power generation, ships and trains, and heavy-duty and tank, can all be included for easy and low-cost installation.
passenger vehicles, which utilise LNG as a fuel.
As a safety-relevant component, the Eternaloc S-Type Conclusion
terminal header features a dual glass-to-metal compression Eternaloc terminal header assemblies can prove useful in the
seal for double safety. In between the seals, sensors could be expansion of LNG infrastructure. They supply the pumps and
installed to monitor the operating conditions in real-time. sensors inside the cryogenic tanks with electrical power and
Leaks, pressure changes and other anomalies can quickly be signals, while providing that the pressure boundary remains
detected and responded to. The inner chamber can also be leak-proof even in the event of an accident. Equipped with
completely closed off to minimise the risk of accidents and glass-to-metal compression seals, they offer maintenance-free
certify the terminal header fully as a flameproof enclosure. reliability and long-term performance of LNG applications.
The properties of the glass used in SCHOTT’s unique With the Eternaloc S-Type feedthrough, SCHOTT now
sealing process have been engineered to achieve a specific supplies double-sealed safety technology in the size of a single
coefficient of thermal expansion. When cooled, it contracts to sealing flange. Its extremely compact dimensions and reduced
a lesser extent than the metal body it has melted to. Thus, the weight opens up new possibilities in safety-critical small scale
glass-to-metal seal remains compressed and provides LNG applications with demanding space constraints.
practically unlimited pressure-proof gas-tightness. Every
Eternaloc terminal header for cryogenic applications with LNG References
is tested for leak-tightness at one and a half times the design 1. International Group of Liquified Natural Gas Importers
pressure, up to 390 bar. (GIIGNL), ‘Annual Report 2018 Edition’, available at:
https://giignl.org/publications
2. McKinsey, ‘Global LNG Market Dynamics: H1 2018’, (August
2018), available at: www.mckinseyenergyinsights.com/
insights/global-lng-market-dynamics-h1-2018
3. DNV-GL, ‘LNG regulatory update’, (10 April 2018), available
at: http://www.golng.eu/files/Main/20180417/2.%20Ole%20
Vidar%20Nilsen%20-%20DNV%20GL.pdf
4. DNV-GL, ‘Sulphur cap ahead – time to take action’,
(30 May 2017), available at: www.dnvgl.com/article/sulphur-
cap-ahead-time-to-take-action-94198
5. International Railway Journal, ‘Florida Eastcoast Railway
converts locomotive fleet to LNG’, (13 November 2017),
available at: https://www.railjournal.com/regions/north-
america/florida-east-coast-railway-converts-locomotive-fleet-
to-lng/
6. LNG World Shipping, ‘Small-scale LNG to see rapid growth
to 2030’, (23 November 2018), available at: https://www.
lngworldshipping.com/news/view,smallscale-lng-to-see-rapid-
growth-to-2030_55996.htm
7. LNG World Shipping, ‘‘Greatest risk’ to gas shipping sector’s
Figure 3. With the Eternaloc® S-Type feedthrough, SCHOTT safety record’, (23 November 2018), available at: https://
now supplies double-sealed safety technology in the compact www.lngworldshipping.com/news/view,greatest-risk-to-gas-
size of a single sealing flange. It is ideally suited to enhance shipping-sectors-safety-record_55998.htm
the safety of small scale LNG applications (source: SCHOTT). 8. The Tyee, ‘How safe is LNG?’, (28 April 2017), available at:
thetyee.ca/News/2017/04/28/How-Safe-is-LNG/

28 March 2019
Don’t
he global surge in LNG demand is drastically

T increasing the need for LNG storage capacity


that will be filled by more and ever-growing
onshore LNG tanks. The LNG industry has an unrivalled
track record of safety with very few major emergency
events. Maintaining this standard of safety will require
continued vigilance when evaluating emergency

crack
situations, such as overfilling, tank rupture and
overpressure events. Uncontrolled overpressure events
can be catastrophic, causing considerable damage to
equipment, the environment and, most importantly,
personnel. The selection of the correct safety equipment
for these tanks is paramount in guaranteeing safety.
Overpressure protection on LNG tanks is complex

under
due to cryogenic temperatures, large capacity
requirements and strict environmental regulations.
When evaluating overpressure requirements for LNG
tanks, it is often beneficial to segment the overpressure
situations into two categories: operational overpressure
events and emergency overpressure events. Both must
be handled differently to ensure the adequate safety of
the system.

pressure Operational overpressure


events
Operational overpressure events are overpressurised
situations that can occur during the normal tank

Brett Bockeloh, USA, and Jean-Paul Boyer, UK,


Emerson Automation Solutions, look at the importance
of using the right valves to prevent accidents related to
LNG tank overpressure.

29
operation of the tank. Everything from the filling of the tank and Pilot-operated relief valves
standard boil-off, to a weather system reducing the atmospheric A pilot-operated pressure relief valve differs from a weight-loaded
pressure, will impact the tank pressure. These events could create or spring-loaded relief valve due to its use of a differential area
an overpressure capacity requirement should the instruments diaphragm or piston to provide the seating force. Figure 1 shows
protecting the tank fail. This capacity requirement determines the a general layout of a pilot-operated pressure relief valve. The
mass flow that must be allowed to escape to maintain a pressure process pressure is passed through a controlling pilot valve and
that is below the maximum allowable working pressure of the then tubed on top of a large diaphragm. The larger area of the
tank. The most common way to handle overpressure requirements diaphragm is acted on by the same pressure as the smaller seat,
on LNG tanks is the use of pressure relief valves. Unlike any and this differential in area provides the valve’s seating force. As
other protecting instrumentation, pressure relief valves are fully the pressure in the tank increases, the downward force on the seat
autonomous; they do not require a power source or control signal grows, increasing seat tightness. When the pressure increases to
to operate, and therefore are able to function even after all other the valve’s predetermined opening pressure (set pressure), the pilot
instruments and equipment have failed. They are often the last will vent pressure from on top of the diaphragm. This allows the
line of defence against an overpressure event. upward force from the seat area to overcome the downward force
Pressure relief valves are safety devices designed to open from the diaphragm opening the main valve seat. In LNG tank
when the pressure in the tank gets too high and close again when applications, there are four key advantages that pilot-operated
the event has subsided. A traditional tank valve or weight-loaded pressure relief valves provide over other overpressure protection
pressure vent that has been used for decades on standard ambient options.
temperature tanks cannot be used to provide protection on LNG
tanks due to the unique and challenging operating requirements. Bubble tight during operation
To solve this challenge, pilot-operated pressure relief valves are Leakage is usually an accepted nuisance for weight-loaded tank
needed. vents. However, a leak on an LNG tank is a major safety issue.
Due to the cryogenic temperatures, the fluid relieved by the
valve is well below the freezing point of water. When the valve’s
outlet discharges into the atmosphere, water vapour from the
atmosphere will condense and freeze around the point of the cold
leak and form ice buildup at the seat of the relief valve. Ice buildup
will freeze the seat closed, increasing the pressure needed to open
the valve and may even prevent the valve from opening at all. This
will result in a serious overpressure condition inside the tank with
no pathway for the pressure to escape.
Pilot-operated pressure relief valves combat this risk by
providing zero-leak seat tightness all the way up to set pressure.
The combination of a soft seat material with the large seating
force provided by the diaphragm keeps the valve seat closed tight
and eliminates the risk of ice buildup.
This seat tightness is critical in underpressure or vacuum relief
Figure 1. A pilot operated pressure relief valve cross section events as well. By maintaining bubble tight seat leakage during
includes critical design components, such as the inlet (1), vacuum events, pilot-operated valves ensure that oxygen does not
pressure sense line (2), pilot (3), dome pressure chamber (4), backflow past the seat and into the LNG vapour space, significantly
and outlet (5).
reducing the risk of a fire or explosion.

Stable and predictable flow


Another unique challenge found in LNG tank applications is
the complexity of the piping prior to the pressure relief valve
that can cause high inlet piping pressure losses during an
overpressure event. Prior to opening, the pressure in the inlet
piping is static and accurately represents the pressure inside the
tank. When the valve opens, the flow through the piping begins
to reduce the pressure sensed at the relief valve inlet due to
pressure lost through friction and pipe diameter restrictions
caused by isolation valves or other equipment during flow. This
inlet pressure loss has a powerful negative effect on pressure
relief valves (see Figure 2).
If the inlet pressure loss is great enough, it can reduce the
pressure sensed at the valve inlet to below the valve’s reseat
pressure. This will cause a phenomenon known as cycling, or in
extreme cases, chattering. This is when the pressure relief valve
opens and closes rapidly, causing wear and tear on the valve
Figure 2. LNG tank installation with inlet piping and outlet
piping. Inlet piping that is long and has many restrictions components, or even causing severe damage to the valve,
can cause inlet pressure loss and decrease valve performance. surrounding piping and bracing. In this case, the capacity of the
relief valve is reduced drastically and is impossible to predict.

30 March 2019
The most common way to solve inlet pressure loss issues is to the header system will act downward on the seats of traditional
re-evaluate and modify the piping design and layout. In LNG tanks, tank vents and increase the opening pressure of the valve. This can
this is not usually possible due to the size of the tanks and the lead to dangerous situations where the valve does not open in
required location of the valves. time to resolve an overpressure event.
Pilot-operated valves provide another option. A standard pilot Built-up backpressure is different from superimposed
valve configuration utilises an ‘integral sense’ pressure pickup line. backpressure. First, because it is caused by the flow of the fluid
This line connects the pilot valve to the process pressure through through the outlet piping, built-up backpressure is only present
a port in the main valve body. In this configuration however, the during the relief event. Second, built-up backpressure is possible
pilot would still be subject to the inlet pressure losses. To even when the piping leads to the atmosphere. Many LNG tank
eliminate this, the pilot valve can instead be tubed down to the pressure relief valves relieve to the atmosphere through a piping
vapour space of the tank with what is called a ‘remote sense’. This stack, sometimes in excess of 16 m in length. This pressure buildup
allows the pilot to always sense the true tank pressure and react at the valve outlet will reduce the lift and capacity of traditional
accordingly even when large inlet pressure losses are present tank vents.
within the inlet piping to the main valve. A valve with the remote Pilot-operated valves are not affected by either type of
sense feature will operate stably and provide its required flow rate backpressure due to the design of the seat and diaphragm and the
during a relief event even when installed on high pressure loss control of the pilot valve. The pilot completely controls the main
inlet piping. valve action and is itself unaffected by backpressure. A pilot valve
will always open at its designed set pressure and will maintain
Consistent opening pressure and that lift regardless of any built-up backpressure during the event.
capacities In LNG tank applications with either or both types of backpressure,
Backpressure is pressure seen on the outlet side of the pressure a pilot-operated pressure relief valve will not suffer any set
relief valve both prior to and during a relief event. Pressure seen pressure variance or lift reduction.
on the outlet of the valve prior to the valve opening is called
‘superimposed backpressure’. Backpressure that builds up due to Getting the most out of each
outlet piping during relief events is called ‘built-up backpressure’. valve
Depending on the configuration of the LNG tank, either or both The most important aspect of a relief valve is its ability to
types of backpressure can be seen. open at its designed pressure and flow the required capacity
Superimposed backpressure is most commonly seen on LNG to prevent a dangerous, uncontrolled overpressure event.
tanks when the relief valve is piped away to a header system that Large LNG tanks often have enormous relief valve capacity
leads to either a vapour recovery unit or a flare. The pressure of requirements in excess of 200 000 kg/hr. To achieve such

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• Operator and Safety Training, Manual Writing

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large capacities, often five or more 12 in. pressure relief valves including purchase of the valves, inlet and outlet piping, fire
are used, and these valves can weigh up to 450 kg each. The suppression systems, and external scaffolding or bracing.
associated piping, bracing and support/scaffolding can also
be extraordinarily heavy and expensive. As tanks and relief Emergency overpressure events
capacity requirements get bigger, the cost of adding more valves Emergency overpressure events are overpressure situations
becomes significant. caused by rare and severe circumstances, such as tank rollover,
There are two ways to combat the costs of adding additional tank overfill or inner tank rupture. All of these situations are
valves: use larger valves or use more efficient valves. Bigger valves monitored for and designed against, but worst-case situations
have larger valve bodies and flow higher relief capacities, reducing can occur.
the total valve quantity, thus the installation cost. However, It is often beneficial to handle these extreme events with a
increasing valve size also increases the valve’s weight. Due to the separate set of overpressure protection valves due to the very
geometry of relief valves, the weight increases at a faster rate than large flow requirements they create. Requiring the standard bank
the corresponding increase in capacity. This increase in weight of relief valves to fulfill these emergency scenarios will result in
applies not only to the valve, but also to the inlet and outlet many oversized valves for day-to-day activities. One viable
piping and required bracing. Purely increasing valve size provides alternative is to identify the capacity requirements for normal
diminishing returns when it comes to total installation savings. tank operation and design the main bank of relief valves to meet
The solution is to use more efficient valves. Relief valve flow that requirement. The excess capacity required by the emergency
path design has undergone a recent evolution and the newest relief events would then be covered using an emergency relief
valves available feature previously impossible flow capacities. valve.
These hyper-efficient valves give tank designers the ability to Emergency relief valves are designed to open at a pressure
reduce the number of valves required while still maintaining the higher than the standard pressure relief valves to ensure that they
original valve size and dimensions. This saves costs by reducing only open when absolutely required. The most common type is
the number of valves required, while keeping piping and bracing called a reserve capacity relief valve. This unique type of valve is
costs to a minimum. usually flushed to the top of the tank with most of the valve
It is important when making the final selection of size and components inside the tank itself. They do not require outlet
quantity of relief valves to consider the total installation cost piping and vent directly to the atmosphere. At sizes of 24 in. or
36 in., these reserve capacity relief valves provide the equivalent
flow of several relief valves. Separating the emergency relief valves
from the standard operational relief valves can provide a
multi-layer overpressure protection scheme that reduces product
loss during normal operation and improves tank safety
(see Figures 3 and 4).

The importance of maintenance


Selecting the correct overpressure protection method is the
first step towards safety. An equally important piece of the
overpressure protection solution is the valve maintenance
program. As pressure relief valves are the last line of defence
against an overpressure event, a service strategy is needed to
keep them in good working condition. Many local governments
have regulations dictating the intervals between maintenance
cycles. However, often a more sophisticated risk-based approach
can be used to successfully diagnose and treat troubled valves
and applications. A strong risk-based asset management strategy
Figure 3. Installation showing inlet and outlet piping can create opportunities for true preventative maintenance,
lengths. Long outlet piping can contribute to high built-up
reducing unscheduled downtime and increasing installation
backpressure.
safety. As pressure relief valves are safety products, it is always
important to have all service work performed by qualified and
trained technicians using original equipment manufacturer (OEM)
components.

Conclusion
Overpressure protection is a critical aspect of overall tank safety.
Evaluating every relief scenario and selecting the correct solution
for each application is extremely important and can significantly
reduce the risk of a catastrophic overpressure event. Additionally,
creating a robust and sophisticated valve maintenance program
greatly contributes to enhancing the safety of LNG tank
operations.
Figure 4. Reserve capacity relief valve used to relieve large End-users need not navigate valve selection and maintenance
capacities of fluid during emergency situations. alone. By working with a trusted valve OEM partner, achieving LNG
tank safety goals is well within reach.

32 March 2019
I need to fulfill my overpressure protection
requirements with smaller sized valves and
associated piping. There must be a way to
reduce valve size, weight and lower my costs.

YOU CAN DO THAT


Anderson Greenwood 9300H
low pressure pilot operated
relief valves can help you reduce your initial pressure relief valve investment and
total cost of ownership. This groundbreaking design provides leak-free operation up to
set pressure while providing best-in-class capacity among low pressure pilot operated
relief valves. The additional capacity reduces the required valve size and minimizes
initial investment while creating additional savings on the associated piping, fittings,
bracing and expansion elbows. For more information on how to meet your overpressure
protection requirements, contact your local sales office at Emerson.com.

The Emerson logo is a trademark and a service mark of Emerson Electric Co. © 2019 Emerson Electric Co.
Aforlifeline
stranded
communities
Cameron Dunn, Arup, USA,
describes how smaller, A
round the world, countries have used LNG to help
cut their carbon emissions and transition to a
renewable-energy future. Yet many communities,
such as island nations or remote cities, have been left out.
prefabricated tanks could They still rely on diesel or low-grade fuel oil to generate
their energy. The result is power that is expensive,
help island nations and inconsistent and polluting.
Smaller, modular LNG terminals enable communities
remote regions transition to like these to access a transitional energy source that has
cleaner, cheaper and more so far been denied to them, as they work to secure more
renewable energy sources. Modular storage could be a
secure energy. key part of tackling the ‘energy trilemma’, creating a

34
35
more sustainable, affordable and secure energy supply in that eliminates the outer concrete wall, reducing overall
areas that are at greatest risk from the impact of climate weight and cost and making it easier to transport.
change. The tanks can be manufactured offsite in factory
For those of us who have enjoyed easy, cheap access to conditions, and then transported and installed on prepared
natural gas for decades, it is difficult to imagine there can be foundations. They cost less because they are built on a
many places without this luxury – but there are. Researchers production line on a single site, with all of the productivity
have estimated that 78% of all energy generation in gains associated with repeat manufacturing. And because the
Pacific Island countries comes from diesel generators. In tanks are easily scalable, from 40 000 m³ upwards,
Mexico for example, a new LNG facility in Baja California Sur communities do not need to buy more storage than they
will provide the peninsular with access to gas for the first need.
time.
Numerous benefits for modular
Leaving oil behind Arup’s modular tank has been used on several LNG projects,
Until now, the only realistic option many places have had the latest of which in Louisiana, US, is currently progressing
for providing baseload power generation has been diesel through permitting process. In this case, the modular tank
or fuel-oil. This is because these fuels, and the generators was chosen for the speed of installation it offers. Six of the
they power, which can be as big as 2 MW and supply over company’s 40 000 m³ tanks offer the same storage volume
a million people, are readily available. LNG has not been as two standard tanks, but can be installed much more
readily available, at least not to smaller customers. quickly.
Stranded communities have found themselves locked out The modular tank design could be equally applicable to
of a global market that has been based on a model where stranded communities, although the principle advantages
large consumers, like Japan, buy huge parcels of LNG and would be cost and the security of supply that comes from
store it in enormous facilities. It is these storage tanks that tapping into a stable global LNG market. In areas like these,
have proved one of the main sticking points for small scale where demand does not match the typical large scale LNG
LNG to power, along with the difficulty of purchasing LNG in developments, small scalable storage will make LNG
small parcels. development less costly and less risky.
Practically everything else is in place. There are smaller,
modular gas power plants already available from the likes of A future energy mix for
GE. Designs for smaller carriers are ready to be built, as are communities
smaller scale floating regasification facilities. All these There are barriers, of course. The more modular storage
would suit stranded communities looking to switch to LNG, tanks you order, the cheaper the cost per m³. So, island
and spot pricing is becoming available. It is the large and nations and other communities may need to club together
expensive storage tanks that remain the deal-breaker. to increase their buying power. Could a global body like the
World Bank back this as part of the fight against climate
Finding the right plug and play change? Compared to using oil, generating power with
solution natural gas emits 20% less CO2, making it an ideal step
The traditional LNG tank in today’s market is based on a on the way to a lower-carbon grid that includes more
site-built, 9% Ni steel, full containment design, with an renewables.
outer pre-stressed concrete container. So why not just build Modular LNG would also be a future-proof option for
smaller versions of these? Economies of scale is the simple stranded communities. With renewables requiring baseload
answer. As the tank volume size reduces, the cost per m³ of generation to supplement them, modular LNG tanks could
LNG stored increases. The unit costs for a 50 000 m³ LNG be converted to store an equally cleaner fuel: hydrogen. For
tank could be up to 50% more than for a 100 000 m³ tank. island nations and others, modular tanks offer a lifeline – a
This is where modular tanks come in. Arup has developed chance to break free from dependence on diesel and fuel
a modular tank design using a single containment concept oil.

Conclusion
Advantages of modular LNG With modular tank storage boasting many attractive
tanks: properties, such as lower programme costs and shorter
 Enable small scale LNG to power projects. construction time, the technology will really grow in
popularity, especially among island communities.
 Provide access to gas for communities reliant on
The Kingdom of Tonga is on course to become
diesel or fuel-oil.
zero-carbon by 2050, and LNG could play an important role
 Give stranded communities a stepping stone to
as a transitional fuel in helping the country to meet its
lower-carbon energy.
target.
 Prefabricated offsite in parallel with foundation Furthermore, the Philippines is already a huge producer
construction. of natural gas – there are field reserves readily available
 Dedicated fabrication yard means improved with the potential to sustain local communities for years to
productivity and higher quality. come. With the right funding from operators and investors,
 Tanks precommissioned off-site. these reserves could assist the surrounding communities in
 Reduced site work. making a speedy transition to LNG and boost the local
economy in the process.

36 March 2019
Learn new
moves from the THE EXPERTISE OF OUR

masters of gas
GASBASSADORS SUPPORTS
YOUR TRANSITION TO GAS

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COVERS THE ENTIRE
GAS VALUE CHAIN

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Wärtsilä has the expertise, experience and offering to enable your transition
to the gas age. Our track record is in a class of its own, and we have
solutions for all phases of the LNG value chain.

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LNG-fuelled
shipping goes
large scale
Adnan Ezzarhouni, GTT, China,
and Martial Claudepierre,
Bureau Veritas, China, discuss
the main technical features of
the world’s largest dual-fuel
vessel program: the ultra large
LNG-fuelled container vessels and
their bunkering counterparts.

ightening environmental regulations and limits set

T on worldwide shipping emissions have increased


the attractiveness of gas as a marine fuel, and LNG
has emerged as the principal alternative fuel option being
adopted today.
Up to now, the use of LNG as fuel has been limited to small
and mid-size ships, and it was originally adopted by LNG carriers.
With a few exceptions, for larger vessels, only ‘LNG ready’ ships
have been developed, such as for tankers, large container carriers
and very large ore carriers. The main reasons being the uncertainty
of the availability of LNG supply infrastructure, ensuring affordable
LNG supply compared to other fuels, as well as extra CAPEX for
dual-fuel (DF) propulsion and auxiliaries. However, on the large
container carrier market, the constantly moving economic and
environmental pressure forces owners to innovate in order to
comply and maintain profitability.
With that in mind, CMA CGM, one of the world’s largest
container liner operators, has adopted a disruptive innovation by
the use of LNG as fuel for its largest newbuild container ships. This
breakthrough project is crucial for the entire industry as it will
demonstrate that compliance with stringent environmental
constraints and increased economic advantages are possible.
The project includes nine LNG-fuelled ultra large container
vessels (ULCVs), each with a capacity of 22 000 TEU, to be built in
Shanghai at the CSSC Hudong Zhonghua (HZ) and Jiangnan (JN)
shipyards, featuring GTT’s Mark III containment system. The supply
chain also includes a 18 600 m³ LNG bunker ship to deliver
0.3 million tpy of LNG fuel.
GTT and Bureau Veritas are in the process of reviewing the
existing LNG fleet and the available LNG bunkering infrastructure

39
in an attempt to evaluate the available options that meet the new LNG bunkering infrastructure
IMO emissions regulations, as well as the rationale behind the development
choice of LNG as fuel for large container liners which have fixed When we look back to the development of LNG-fuelled vessels,
routes and tight schedules. it is clear that the key to the wider development of LNG as fuel
The technical challenges presented by the world’s first was the LNG bunker delivery logistic chain. The first age of LNG
LNG-fuelled ULCVs, as well as the associated LNG bunkering as fuel was satisfied with LNG bunkering from trucks, but rapidly
vessels (LBVs), are numerous. it appeared no longer viable to multiply the number of trucks to
deliver the larger requested quantities of LNG as fuel. It became
LNG as fuel market development obvious that greater investments were necessary, involving many
Using LNG as marine fuel means full compliance with any stakeholders globally.
environmental regulation ahead. This statement is, however, Shell, ENGIE and Total were the first LNG suppliers to
subject to specificities depending on technologies (2 or 4 stroke, understand the new market development requirements and to
low pressure or high pressure gas injection). bring an appropriate answer in terms of a large scale bunkering
Initially, the LNG as fuel initiative was limited to vessels solution. MOL’s LBV, chartered by Total Marine Fuels, features
operating all year in Emission Control Areas (ECAs) on dedicated 18 600 m³ of LNG bunker capacity, thanks to Mark III membrane
routes where state funds were encouraging the use of low NOx tanks, and the appropriate auxiliaries to transport, store and
technologies. This was particularly the case for Norway where, in deliver the LNG, and treat vapour return from client vessels. It is
the 2000s, the first fjord ferry (gas-only) was put into service with the top of its class, and offers a model for new designs of LBV.
a relatively low power propulsion system and small LNG storage In Asia, whilst being a bit late to the market due to a traditional
onboard. high price of LNG and absence of environmental regulations in
In parallel, the LNG carrier industry experimented in 2006 with place, rapid progress is now being made to implement local
the first ever DF engine to be installed onboard a vessel. The first emission controlled areas, such as in China, induced by the
ever DF engine was certified by Bureau Veritas, opening the way Maritime Safety Administration (MSA), enabling the region to catch
for future application of EIAPP MARPOL clean engines. up with the demand of international and local LNG fuel markets.
From 2006 to 2014, the industry has seen a steady and slow LNG ship-to-ship (STS) bunkering is the way forward for
evolution of the market of LNG fuel vessels, mainly composed of developing the market, mimicking the HFO and MGO markets, and
short sea shipping and ferries. The reason behind this was mainly offering flexibility and opportunities to use LBVs as short sea LNG
the presence of ECAs, as already mentioned, in the Baltic and carriers to meet other demands. Amongst other advantages, the
North Sea in Europe and the second in North America, with simultaneous commercial operations (SIMOPS) is a must to
allocated funding. Other factors include the lack of or limited LNG achieve such innovative clean propulsion, since it allows cargo
bunkering infrastructure, mainly composed of truck-to-ship loading and unloading at the same time as the LNG transfer
bunkering convenient for short voyage ferries and short sea operations, side by side with the LBV.
shipping embarking with only a limited amount of LNG, and the But there is a price to pay, as a typical LNG bunker vessel will
relatively high cost of construction, approximately 20 – 30% more cost up to five times more than a basic HFO/MGO bunker barge
compared to a liquid fuel version (CAPEX), and high fuel cost (investors are at stake, and many of them have taken action by
(OPEX) compared to heavy fuel oil (HFO) or marine gas oil (MGO) vacillating local regulations, delivering financial support and
on an equivalent energy basis. In addition to these costs, an extra learning from other front runners).
price to pay was the waste of cargo space due to the poor
integration of LNG storage tanks and the lower density and energy The world’s largest LNG bunker
content of the LNG compared to HFO or MGO. vessel
There was a sharp change in the LNG as fuel market in 2017 The main challenge presented by LNG as fuel is to maintain
with the adoption of LNG as fuel by ocean-going UCLVs. The fleet comparable profitability with standard fuels, such as HFO or MGO.
in service currently numbers more than 132 units (aggregate When it comes to LNG bunkering, the authorisation to bunker LNG
diverse fleets), with a further 140 units under construction. The as fuel during commercial operations is requested by the end-user.
regions receiving the most coverage at present are This implies that the bunkering operation will not take place
Northern Europe and North America, which is not a surprise in in a dedicated remote area, but in the container terminal, ships
light of ECA presences. Other emerging areas such as Asia, side-by-side, container loading and unloading by cranes, ‘business
Australia and South America still have a limited number of units. as usual’.

The story of the


CMA CGM LNG-fuelled
vessels project
The CMA CGM project is the conclusion of a
long lasting investigation process that started
in 2010, when the first collaboration with
DSME & CMA CGM was established. Back
then, environmental regulation was already
encouraging consumers to find alternative
ways of being sustainable whilst maintaining
Figure 1. Typical trade route for an ultra large container vessel (ULCV) between profitability. However, due to the lack of an
Asia and Europe. LNG bunkering chain and the lack of visibility
in terms of LNG fuel costs, it was not found

40 March 2019
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relevant to derive the ‘approval in principle’ (AIP) for a real project. deck in accordance with the IGF Code. The double bottom and
Type B tank and high pressure DF 2 stroke engine propulsion side area around the LNG storage tank are arranged as void
systems were assessed; ship structure, LNG fuel storage and space. Double hull construction is provided from the N°1 to N°11
economics were also studied. cargo holds, and covers the engine room. Double bottom will
In 2013, a 16 000 TEU vessel with MARIC & Shanghai extend from the aft peak bulkhead to as far forward as
Jiangnan Changxing Heavy Industry was assessed. Membrane type practicable, subject to strength consideration. Double bottom will
fuel storage tanks were also studied. Meanwhile, other AIPs and be approximately 2.6 m.
joint development projects (JDPs) were approved and agreed,
paving the way to a clear mutual understanding of such designs. Lessons learnt
In 2017, CMA CGM made its groundbreaking decision to Contrary to conventional LNG carriers, the LNG fuel tanks for this
request shipyards propose designs for a ULCV with a DF option. project have additional features:
HZ Shipyard was finally selected to construct the vessel. It was z All filling levels, as it is a fuel tank.
also agreed that the associated LBV would be constructed in the
z Large and single fuel tank.
same shipyard.
Initially, the project was targeting two bunkering operations in In order to design a proper solution, specific design
the sailing loop, as usually the case for HFO bunkering, one bunker considerations were taken into account in order to cope with the
stop in Malacca Strait-Singapore area and one in the exceptional requirements of the vessel. The key changes included
Amsterdam-Rotterdam-Antwerp (ARA) region. Unfortunately, due to the following:
the uncertainty of the availability of the LNG bunker fuel back in z Insulation reinforcement: the insulation panels need to
2017 and the differences in prices, it was decided that the vessel withstand the loads derived from LNG sloshing. Heavier
would be operated along the route from Northern Asia to densities on foam panels up to 210 Kg/m³ need to be
Northern Europe with one bunkering stop in Europe only, almost introduced in some parts of the tanks. GTT has already
doubling the required onboard LNG fuel storage capacity. implemented similar reinforcement on very large ethane
The outcome of the project was an ultra large container carrier carriers (VLECs), which are designed to carry heavier cargoes,
(22 000 TEU), the largest in the world at the time the contract was such as ethane and LPG.
signed, featuring a DF propulsion system, a large Mark III
z Primary membrane reinforcement below corrugation: like
membrane tank, gas handling preparation technology and a gas
the insulating panels, the primary membrane also faces the
fuel supply system. The vessel is an ocean going, single screw, DF
sloshing loads of LNG cargoes, and needs to have proper
diesel engine driven, fully cellular container vessel, suitable for
reinforcement underneath the corrugations with so called
carrying dry cargo containers. It also has five tiers of lashing
‘wedges’. For this particular project, the material used was
bridges.
aluminium, in order to avoid deformations of the primary
The vessel has a raked stem with straight bow, a transom stern
membrane.
and a continuous deck. The accommodation, including the
navigation bridge, is located semi-fore and the engine room is z Inner hull reinforcement: as the membrane tank is
located semi-aft. non-self-supported and employs load bearing material,
The membrane LNG storage tank, featuring GTT’s Mark III the inner hull needs to also be designed to withstand the
reinforced system, is installed below the accommodation, under hydrodynamic pressures from the fuel tank. Therefore, a
specific assessment combined with sloshing tests has been
carried out to define a minimum thickness for the hull. Under
these conditions, the deformation of the hull as a result of
sloshing remains similar to that of traditional LNG carriers.
z Protection of the pump tower: due to the higher sloshing
loads and because only fuel gas pumps are applied, GTT has
revisited the design of the pump tower in order to limit the
Figure 2. Artist’s impression of a 22 000 TEU DF vessel, exposure of the equipment to sloshing.
equipped with GTT’s Mark III LNG containment system
(image courtesy of: CMA CGM). This project features the largest LNG fuel supply chain so far,
and has doubled the total LNG fuel volume contracted. As a world
first in a nascent LNG fuel industry, the nine ULCVs and their
dedicated LBV have been a key development project for the LNG
as fuel industry.
We will see more and more LNG-fuelled vessels in the near
future, thanks to the growing development of the LNG bunker fleet
all over the world. The supply and economics of LNG will play a
significant role in that development, and containers transported by
such clean and efficient ships will remain, more than ever, the
cleanest and most cost-effective mode of transport, thanks to LNG
as fuel.
GTT, Bureau Veritas, CMA CGM, MOL and Total have proven not
Figure 3. Artist’s impression of the aluminium wedges only the feasibility of LNG as fuel, but more importantly, the
below the primary membrane corrugations. viability of the economic model thanks to this disruptive decision
for a cleaner future.

42 March 2019
lhe perfect
combination Ralph Weiland,
T
he most common solvent for removing
carbon dioxide in LNG production is based on
Optimized Gas Treating, N-methyldiethanolamine (MDEA) combined with
modest concentrations of the fast-reacting activator,
Inc., discusses the process piperazine. MDEA is nonreactive towards CO2 and does not
form a carbamate. This gives MDEA a significantly lower
of removing CO2 from LNG heat of absorption than primary and secondary amines.
This translates into lower solvent regeneration energy
using piperazine-MDEA costs. However, lack of reaction makes MDEA by itself an
unsuitable solvent for CO2 because absorption is simply
solvents. too slow. A few weight percent of piperazine (typically

43
5 – 16 wt% in the undiluted solvent) greatly accelerates the A third type of pinch, pinching at the temperature bulge (a
process. All major solvent vendors offer several formulations so-called bulge pinch), is less widely recognised. However, it
of piperazine with MDEA for a variety of carbon dioxide too is also a constraint that can prevent an absorber from
removal applications, and some include such solvents as treating to a satisfactory level and, when present, can prevent
part of licensed processes. a solvent’s full capacity from being utilised. Bulge pinching
Pinched mass transfer is a common occurrence in CO2 was described in some detail in the earlier article.¹
removal units for LNG production. In an earlier article, a case The present writing is a case study that looks at the
study was used to discuss the meaning and significance of treating response to piperazine concentration and solvent
bulge pinching in the context of LNG.¹ However, the operating circulation rate. It uses the same absorber and gas conditions
conditions were not optimised, and nothing was said about as the earlier study.¹
the effect of piperazine concentration and solvent flow rate
on treating. Plant operating parameters
Lean-end pinching is widely recognised in the industry. It The gas pressure, temperature and composition, particularly
simply means that, provided the absorber contains enough with respect to CO2, vary from one application to another.
packing or trays, the final gas purity is determined by the CO2 However, a great deal of LNG feed is drawn from pipelines
loading of the lean solvent at the top of the absorber. Lean which have a maximum allowable CO2 concentration of 2%, so
solvent loading of course is strictly dependent on the this is the value used in the case study. Other gas parameters
operation of the regenerator, not on the absorber. are shown in Table 1. These parameters, possibly together
Rich-end pinching occurs when the solvent is incapable of with the solvent temperature and loading, determine the best
coming even close to meeting the treating objective because solvent flow rate and formulation.
solvent capacity is too limited. Limited capacity can result In the case of solvents containing MDEA promoted with
from either too low a solvent flow rate, or too low solvent piperazine, the total amine concentration and the
strength. MDEA-to-piperazine ratio are selectable parameters, as is the
lean solvent CO2 loading. So, there are several parameters that
Table 1. Raw gas can be adjusted to force the plant to produce specification gas
and to optimise its performance.
Temperature (ºC) 20 Besides ensuring the gas meets treating specifications
(usually CO2 less than 50 ppmv), another design objective is to
Pressure (barg) 60
maximise the solvent’s effective capacity, also called the
Composition solvent net loading (essentially the difference between the
rich and lean solution total CO2 loading). However, there are
CO2 (mole %) 2 also other practical constraints.
Unless special metallurgy is being considered, corrosion
Methane 85
avoidance dictates that the rich amine CO2 loading be kept
C2+ 13 below approximately 0.45 – 0.5 moles CO2 per mole of total
amine. Since the lean amine loading in
promoted MDEA is usually fairly low, rich
loading and net loading are numerically
almost the same. Another constraint that is
also related to corrosion issues is the
maximum allowable temperature in the
absorber. This is at the temperature bulge
and is kept below approximately 85ºC.
Simultaneously meeting all of these
constraints can place severe restrictions on
what operating conditions are even feasible.
Meeting constraints also determines
possible operating ranges for variables such
as solvent circulation rate, temperature and
solvent formulation.
The lean solvent loading is controlled
by the steam or hot oil flow rate to the
regenerator’s reboiler. Sometimes (but not
always), this can be used with great effect
to control treating. However, if the absorber
is bulge or rich-end pinched, such is not the
case and treating can be completely
insensitive to reboiler duty. The often
ignored but critical factor in much of this is
the heat of absorption because it plays a
Figure 1. Treating response using 50 wt% total amine. large role in determining whether there are
mass transfer pinch limitations, and if there

44 March 2019
are, then the type of pinching and what operating parameters the bulge temperature was below or above 85ºC, and how
control the operation. solvent net loading responded to these solvent parameters.
Lean solvent loading was kept at 0.02 moles of CO2 per mole
Case study of total amine (0.02 mol/mol). In the interest of conserving
The case study has three objectives: the first is to show space, only the case with 50 wt% solvent is described in any
how various constraints can conspire to rule out use of a detail; the other two cases are simply referenced.
particular solvent strength regardless of its formulation. The It should be noted that treating may or may not be much
second is to show how the formulation itself (specifically the improved by more thorough regeneration of the solvent, i.e. by
piperazine-to-MDEA ratio) can be used to improve ease of generating a leaner solvent, depending on whether the
operability of the absorber. The third is to show how moving absorber is lean end pinched. Simulated CO2 profiles in the
a process parameter in what seems to be an instinctively absorber are most useful for determining pinch conditions.
obvious direction can actually be a move in the wrong
direction. The solvent parameters considered are flow rate, 50 wt% total amine
strength, formulation and temperature. The case study uses Figure 1 shows how absorber performance as measured
the ProTreat® simulator. by treated gas CO2 content responds to solvent rate for
The real physical absorber that is used as the basis for the various formulations. The line separating satisfactory from
study contains Mellapak M-250X structured packing; in the unsatisfactory values of the bulge temperature is also
actual plant, the regenerator contains trays. The packing shown. Given enough piperazine in the solvent, there is a
specific (dry physical) area is nominally 250 m2/m3. large operating range of solvent flows to the left of the
85ºC boundary that will produce gas meeting the less than
Operating parameters 50 ppmv CO2 specification. There is an optimal solvent flow
Conventionally, solvent formulations are usually referred for each solvent formulation. It should be noted that only
to the neat solvent, i.e. as received by rail car or tanker, or formulations with more than 10 wt% piperazine are capable
in drums, undiluted with water. In this study, performance of reaching 50 ppmv CO2 in the treated gas.
parameters and operating windows were obtained from Solvent net loading is the difference between the rich
two sets of simulations using 40 and 50 wt% solvent at and lean solvent loading values. It is a useful measure of
35ºC and a third set using 50 wt% total amine at 45ºC. Six how effectively the solvent’s actual capacity is being used. In
solvent formulations were used: 5, 7.5, 10, 12, 14 and 16 wt% the present case, the lean loading is only 0.02 mol/mol,
piperazine with the balance MDEA. Performance was assessed which is numerically small compared to the rich loading so
on the basis of the treated gas purity achieved, whether net loading and rich loading are nearly the same number.

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ADHO178019-A
March 2019 45
Figure 2 shows how solvent net loading responds to the value, treating then starts to worsen because of inadequate
same solvent parameters as in Figure 1. The important solvent capacity for the gas.
observation here is that for solvents able to produce
50 ppmv treated gas, only solvent rates greater than Effect of other parameters
approximately 45 m3/hr can do so while keeping the rich A full set of ProTreat simulations, equivalent to what is
loading below about 0.5 mol/mol. This eliminates a sizeable shown in Figures 1 and 2 but for 40 wt% solvent, were
portion of the potential operating area in Figure 1. Thus, performed to determine whether higher loading values
controlling corrosion by requiring the rich solvent loading to could be obtained by using less amine. The results showed
be below 0.5 mol/mol squeezes the operating range into the instead that there was no operating window for any solvent
pale green area shown in Figure 1. formulation at all that met all criteria for treating, namely,
The shape of the curves in Figure 1 deserves some less than 50 ppmv CO2 with bulge temperature less than
explanation if only because normally one would expect that 85ºC, and maximum solvent utilisation as indicated by a
higher solvent rates would lower the residual CO2 in the gas, highly loaded rich solvent. Rich solvent loadings between
even if that means the solvent is less effectively used. 0.35 and 0.5 mol/mol could be obtained only at the expense
However, Figure 1 shows the opposite. of bulge temperatures well in excess of 85ºC regardless of
All the solvent flow rates in Figure 1 (even including the solvent formulation. Of course, at very high solvent rates
upper end) have relatively low values because one of the (greater than 100 m3/hr), treating to a few ppmv CO2, far
objectives is to remove 2% CO2, a small amount, with the better than necessary, could be easily achieved, but only with
highest effective solvent utilisation (net loading) possible, and the economic penalty associated with high pumping and
therefore using minimal solvent flow rate. The relatively high energy costs, and poor solvent utilisation.
gas flow forces the temperature bulge to lie near the top of Higher lean solvent temperatures can potentially drive
the column. There just is not enough liquid flow to drive it treating in either direction. Hotter solvents have faster
downwards into the bottom of the column where it is usually reaction kinetics and lower viscosity, both of which encourage
found in most gas treating applications. faster absorption rates. Colder solvents have more favourable
The gas flow conveys heat up the column where it meets CO2 solubility. However, a third set of simulations run with the
a small flow of cool entering lean solvent. The cool solvent solvent temperature increased from 35ºC to 45ºC showed
then absorbs some of the heat and redirects it downward. If virtually no effect of solvent temperature on absorber
the upward and downward convection are in rough balance, performance itself, or on the extent of the feasible operating
the released heat of absorption keeps getting redirected ranges with regards to solvent formulation and flow rate.
towards the centre of the absorber where it becomes Treating performance was completely insensitive to lean
trapped and creates a very hot temperature bulge before it solvent temperature, at least at these two levels.
can escape. If gas flow dominates, the bulge ends up at the
top. If liquid flow dominates, it locates at the bottom. It is all Summary
a matter of which phase conveys the most heat along the The results discussed in this article are quantitatively valid
column.2 only for the precise conditions of the study. However, the
In the present context, when an already low liquid flow is results are qualitatively applicable to many LNG production
reduced further, the heat of absorption is convected by the situations. The very fast kinetics of the reaction of CO2
gas out the top of the column even more easily, temperatures with piperazine has a tendency to generate sharp high
are cooler, and equilibrium favours better absorption. Thus, temperature peaks within the absorption column, which
treating improves. However, when reduced below a certain exaggerates behaviours seen when less aggressive amine
solvents are used.
Bulge pinching is not limited to piperazine
promoted MDEA solvents. However, the rapid
reaction kinetics this type of solvent shows
with CO2 makes bulge pinching more likely. The
kind of operating map discussed here can be
generated using ProTreat’s true mass transfer
rate basis for any combination of solvent
formulation and gas composition and flow. It
may not always be possible to operate with full
solvent utilisation at optimally low flow rates,
but if it is, a concise visual picture is very easy
to obtain of just how large the operating
window is and how much leeway there is from
a process control standpoint.

References
1. WEILAND, R., ‘Best Bulge Pinch Prevention’,
LNG Industry, (September 2018), pp. 21 – 24.
2. WEILAND, R. and HATCHER,
Figure 2. Plots of CO2 partial pressure showing pinched and non-pinched N., ‘Understanding Temperature
operation. Profiles’, Hydrocarbon Engineering,
(February 2017), pp. 47 – 50.

46 March 2019
Achieving
efficient LPG
extraction
Yasuyuki Yamamori, Toyo Engineering Corp., Japan,
discusses the features of a new LNG fractionation
technology, and compares the two columns process with
single column processes.
NG demand across the world is continuously increasing imported LNG is approximately 42 MJ/Nm³. In order to

L and global LNG demand in 2018 increased to


319 million t, an increase of 27 million t from that in
2017 according to Shell’s latest LNG outlook.¹
reduce the heating value of LNG, LPG extraction is an
economical and feasible option, compared to either
blending with lean LNG or nitrogen injection, whenever the
LNG usually contains several natural gas liquids (NGLs), petrochemical plants can receive these LPG streams as the
including C2, C3 and C4. As the pipeline grid has a certain feedstock near the LNG regasification unit. This is because
range of the heating value specification, LNG may have a LPG as the feedstock of petrochemical plants has a higher
higher heating value than that of pipeline specification in commercial value than LNG used for city gas or fuel.
some cases. For example, in China the average The commercial scale NGL extraction unit from LNG is
gross heating value (GHV) of city gas pipeline is 39 MJ/Nm³ available in Dahej C2+ NGL extraction unit, owned by ONGC
in Shanghai² and 37 MJ/Nm³ in Beijing,³ while the GHV of in India (Figure 1). The unit is used to extract C2, C3 and C4

47
from 5 million tpy of LNG and has been successfully regasification units. Since 2017, this proven technology has
operating since its commissioning in August 2015. been further improved as COREFLUX-LPG to fit for LPG
In ONGC’s NGL extraction plant, Cold Reflux extraction, which achieves the highest C3/C4 extraction
(COREFLUX®) technology has been selected by ONGC. This rate over 99.5% with the minimum energy consumption. In
is the single column process used to separate NGL from this article, the process features of the new two columns
LNG, and is compatible with existing and newly built LNG process, COREFLUX-LPG, are discussed and compared with
single column processes. In addition, petrochemical
demand and economic analysis of the new process are
discussed for better understanding.

Expected demand of propane


Propylene demand has been increasing by nearly 5%/yr in
recent years due to the shift to lighter feedstocks at steam
crackers. In China, for example, annual propylene demand
has increased and is expected to reach to 35 million t in
2020.4 This trend shows that many propylene production
plants are being constructed in China to cover the growing
domestic demand.
Conventional processes for propylene production are
Figure 1. ONGC C2/C3/C4 extraction plant in Dahej (photo steam cracker and propylene recovery from refinery off-gas.
courtesy of ONGC). On the other hand, on-purpose propylene production
processes are growing as the propylene/ethylene (P/E) ratio
is decreasing in steam crackers due to the shift to natural
Table 1. Desktop simulation study results for comparison gas feedstock. Among several on-purpose propylene
of single and two column processes processes, the contribution of propane dehydrogenation
US patent
US US Patent (PDH) is remarkably increasing. In China, for example, 13%
6,510,706 2,952,984 pending
of total domestic propylene production was supplied by
Process scheme Figure 2 Figure 3 Figure 4 PDH in 2015, while it will increase to 18% in 2020.
Single Single Two According to the increasing demand of propylene, a higher
Process
column column columns amount of propane also becomes required as the feedstock
of PDH. Wherever both LPG and LNG are imported from
Propane extraction rate (%) 96.28 99.47 99.50
overseas, the domestic supply of LPG, by extraction from
Butane extraction rate (%) 99.13 100.00 100.00 LNG, becomes feasible and attractive in terms of economics.
If LPG is extracted from LNG, it does not contain any
Feed LNG pump power (kW) 355 393 297 sulfur compounds as all impurities should be removed in the
Product lean LNG pump LNG liquefaction plant. In addition, the purity of propane can
1311 1272 1336
power (kW) easily be adjusted to fit the requirements of PDH when LPG
1st column reflux pump
- 22 - is extracted by LNG fractionation technology. The GHV of
power (kW)
regas can still be high enough, although 99.5% of propane
2nd column reflux pump
power (kW)
- - 13 and 100% of butanes are extracted from LNG, as The GHV of
LNG is higher than that of pipeline gas in China.
Total pump power (kW) 1666 1687 1646

1st column reboiler duty


(MW)
13.45 14.32 9.53 Process features of
2nd column reboiler duty
COREFLUX-LPG
(MW)
- - 2.38 The following single column processes are available for
LPG extraction from LNG as shown in Figure 2 and 3.
Total reboiler duty (MW) 13.45 14.32 11,91
As the single column process shown in Figure 2 utilises
1st column pressure (barg) 22.5 25.0 18.9 parts of the feed LNG as the reflux of the column, propane
extraction rate will vary depending upon the composition
1st column diameter
top/bottom (m)
2.80/3.55 2.85/4.05 2.80/2.55 of feed LNG. On the other hand, the single column process
shown in Figure 3 uses the reflux which originates from
2nd column diameter (m) - - 1.45
the top of the column, where a higher propane extraction
rate than that of Figure 2 is possible by enriching C2
content in the overhead reflux stream. However, column
Table 2. Gross profit of LPG extraction from LNG
diameter becomes relatively larger due to the higher
Unit price Product rate
(US$/t) (tpy)
Price (million US$/yr) vapour load in case of the single column processes, where
Feed LNG 327 5 000 000 1635.0 all of the C1 and C2 should be vaporised to be stripped out
from the top of the column.
Lean LNG 327 4 469 000 1461.4
The process configuration of COREFLUX-LPG is a simple
Propane 425 391 000 166.2
two columns process as shown in Figure 4.
Butane 459 136 000 62.4
A desktop simulation study was carried out to examine
Profit of LPG extraction 55.0
the performance of the new two columns process,

48 March 2019
COREFLUX-LPG with the feed LNG composition where
0.5 mole% nitrogen, 86.7 mole% methane, 8.9 mole%
ethane, 2.9 mole% propane and 1.0 mole% butane are
included. Feed LNG throughput is set up as 204 tph and
pipeline pressure for product lean LNG is assumed as
93.1 barg. LPG is extracted from the above feed LNG with
C2/C3 molar ratio of 0.02 in LPG. The results are
summarised in Table 1.
In the case of the single column process (Figure 2), the
propane extraction rate is 96.28%, which is slightly lower
than other processes. This is because feed LNG is directly
used as the reflux of the column as discussed above. On
the other hand, propane extraction rate can be improved as
99.47% in Figure 3, where column overhead vapour is used
as the reflux after condensation. The two columns process
by COREFLUX-LPG (Figure 4) can reduce the vapour load of
the bottom section of the first column, the demethaniser,
where column diameter is reduced to 2.55 m, although the
similar high propane extraction rate of 99.5% is
maintained. Ethane rich recycle stream from the
deethaniser to the demethaniser overhead enables the
reduction of the overhead vapour rate from the
demethaniser. This can further reduce the required cold
heat for total condensation of lean LNG without any vapour
compression as well as the reduced column operation
pressure of 18.9 barg.
As a summary, the following process features can be
accomplished by the new two columns process,
COREFLUX-LPG.
z Reduced column diameter of the demethaniser.
z High propane extraction rate (>99.5%) with ethane rich
reflux.
z No vapour compression for reliquefaction in the
demethaniser overhead.
z Low energy consumption with low operation pressure of
the demethaniser.

Economic analysis for


COREFLUX-LPG technology
A concept of the COREFLUX-LPG process is visualised
in Figure 5 to show the integration between the LNG
regasification and the downstream PDH unit.
A typical LNG regasification unit with a capacity of
5 million tpy is taken as an example with an LNG feed
source from Australia, where 87.5 mole% methane,
8.3 mole% ethane, 3.3 mole% propane, 0.4 mole% i-butane,
and 0.5 mole% n-butane are included.5
Extracted propane product from feed LNG is estimated
as 391 000 tpy and butane and heavier hydrocarbon
products become 136 000 tpy. Propane product can be sent
to the PDH unit via pipeline or any available transportation
means and C4+ product can also be directed to a
petrochemical plant. Lean LNG after C3/C4 extraction is
sent back to the LNG regasification unit by a lean LNG high
pressure (HP) pump with the necessary pipeline pressure.
A gross profit is estimated as below, where all unit
prices are taken from the imported landed price in China
for LNG, propane and butane through oilchem.net as of
14 April 2017.
COREFLUX-LPG can bring to a LNG regasification unit
with capacity of 5 million tpy an additional profit of
approximately US$55 million, if the difference of imported
landed price is considered.
The utility consumption has no significant difference
with that for the LNG regasification unit, as no external
chilling is required to condense the reflux for distillation.
The natural gas pipeline specification is set up as pressure
of 80 barg and temperature of 10ºC as send-out condition.
Total pumping power and heat duty are approximately
3456 kW and 121 MW, respectively, for the LNG
regasification unit. On the other hand, the same utilities
are estimated as 3988 kW and 120 MW if COREFLUX-LPG is
provided. Heat input to the system including LNG
Figure 2. Single column process (US 6,510,706). regasification and COREFLUX-LPG is almost same for both
cases. Pumping power is increased from 3456 kW to
3988 kW because of the feed LNG pump power required for
operation of the demethaniser.
In summary, COREFLUX-LPG can bring the LNG
regasification unit an additional US$55 million annual
gross profit with limited additional operation costs by
pump. The average industrial electricity cost in China is
US$0.1 per kWh and COREFLUX-LPG's on-stream time is
considered as 8000 hr/yr, which is a typical on-stream
factor of a petrochemical plant. Then, additional operation
cost is estimated at US$0.4 million per year and gross
profit can be kept at US$54.6 million.

Conclusion
Figure 3. Single column process (US 2,952,984). LPG extraction from LNG provides an economical benefit
for the LNG regasification unit because of the
unit price difference between LNG and LPG.
COREFLUX-LPG process can provide efficient
extraction of LPG. A commercial scale plant has
successfully been delivered and commissioned
in Dahej, India, for ONGC and the stable
operation of this plant is demonstrating the
practicality and economic viability of this new
extraction technology. As propane imports to
Asia have been increasing remarkably due to
the increased demand by the new PDH units,
this LPG extraction technology can potentially
open a new business opportunity.6

References
1. 'Shell LNG Outlook 2019', Royal Dutch
Shell, https://www.shell.com/energy-and-
Figure 4. Process flow scheme of COREFLUX-LPG. innovation/natural-gas/liquefied-natural-gas-
lng/lng-outlook-2019.html#vanity-aHR0cHM6
Ly93d3cuc2hlbGwuY29tL2VuZXJneS1hbmQta
W5ub3ZhdGlvbi9uYXR1cmFsLWdhcy9saXF1Z
WZpZWQtbmF0dXJhbC1nYXMtbG5nL2xuZy1
vdXRsb29rLmh0bWw
2. 'Natural gas calorific value measurement
needs to be accelerated', China Energy News,
(8 December 2014), http://paper.people.com.cn/
zgnyb/html/2014-12/08/content_1508631.htm.
3. 'Technical requirements for calorific value
of liquefied natural gas used in vehicles',
Beijing local standard, zjj.beijing.gov.cn/UPLO
AD/20180531/2018531173756231.doc.
4. [EB/OL], (5 January 2017), http://e.icis-china.
com/news/detail?id=1080&typeid=28.
5. 'LNG small scale plant technical guideline',
The Japan Gas Association, (2000).
Figure 5. Integration between LNG regasification and PDH via 6. DUFFY, J., and MORSE, P., 'Asia and Europe join
COREFLUX-LPG. the feedstock evolution with steam crackers',
Hydrocarbon Processing, (April 2018).

50 March 2019
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CRYOGENIC LNG
GROUP

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52
The need
for speed
Russell Brown, Orbital Gas Systems Ltd, UK, describes an
alternative, faster method for LNG energy determination,
capable of measuring gas properties on a continuous basis.
he traditional method for LNG energy determination vary widely and will only compound the issue of using GC for

T has long been gas chromatography (GC). However, GC is


capable of missing property fluctuations that may occur
between cycles. An alternative method is now available, which
accurate measurement and control. The magnitude of the
error is the sum of variations from the last measured value
over time. If importing from an LNG tanker, this could equate
enables users to measure the gas properties continuously to tens of thousands of dollars even with the GC operating
and receive updated data every couple of seconds. This alone perfectly.
should be reason to consider the new method. However, an
added benefit is that the new method does not rely upon Potential problems
the error prone homogenous vaporisation process, hence Figure 1 represents the vaporised LNG as mixed molecules
providing the user with a more reliable and complete picture. of methane (red), ethane (yellow), propane (blue) and butane
(green). Assuming a stable process gas composition but
Conventional LNG gas quality a non-homogenous vaporisation, with the timed period
monitoring between each capture of gas sample being several minutes,
Measurement by GC requires a sample of the LNG to be then successive slices of sample gas may vary in content. The
vaporised without changing the relative concentration of laws of physics dictate that the methane will always want to
the constituent components in the process. Chromatography vaporise before ethane, ethane before propane, and so on.
literally cuts a tiny slice of this vaporised sample from the Even the most homogenous vaporisers can only fight
sample path every few minutes, and then injects it into the against this challenge of thermodynamics to a degree when
separation stream. Peak identification and integrated results attempting ‘real-time’ sampling. Whilst it may be possible to
in a calculated concentration of individual gas components obtain homogenous mixtures if an entire sample is vaporised,
are generated. From this gas composition, the gas properties, re-mixed and then a sample of the mixed gas taken, the time,
such as calorific value (CV), relative density (RD) and cost and size of this type of equipment is prohibitive to most
Wobbe Index (WI), can be calculated using the international installations.
standard ISO6976 (natural gas – calculation of calorific values, Another potential problem associated with a GC system is
density, relative density and Wobbe indices from composition). the complexity, installation, commissioning and continued
The assumption that each slice perfectly represents the maintenance to ensure that the system performs suitably.
entire sample stream until the next data point is flawed. The Continuous sampling with near real-time analyser
vaporised LNG composition and related properties will never response will improve accuracy of CV data, particularly if this
be perfectly consistent, and do not vary linearly or predictably. is averaged over longer time periods. The requirement to
Depending on the source of the LNG, the composition can match instantaneous volumetric or mass flow of LNG with a

53
samples. Small diameter sample
tubing reduces gas sample volume
and vented gas and generally
improves response times.
Any reductions in cost, installation
time and maintenance will be
beneficial to new instrumentation
provided that accuracy is not
compromised.
The GasPTi (Figure 2) utilises
VE Technology, which is a unique gas
sampling and gas conditioning system,
developed for use with any analytical
device looking at any analyte.
The VE sample probe has: a
patented design of helical straking to
Figure 1. GasPT acoustic resonator. significantly reduce vortex shedding
and probe vibration; an aerodynamic
tip to actively eliminate the intake of
contamination; and a ‘two’ part assembly using precision,
small bore tubing as the sample pathway from probe tip to
analyser. The VE Technology gas sampling and conditioning is
based on an electro-polished 2 mm ID sample pathway with
continuous flow path to reduce sample volume, increase
response speed and reduce the potential for trapped or
stagnant gas contaminating fresh gas samples. The GasPTi
enclosure includes double block and bleed isolation valves,
gas filtering, preheating prior to pressure drop (to eliminate
the possibility of retrograde condensation due to
Joule-Thompson cooling), critical orifice for first pressure
reduction, flow control and final pressure adjustment for the
GasPT sensor. The VE Technology sampling and conditioning
components can equally be used for trace element analysis
linked to mercury, hydrogen sulfide and moisture analysis
Figure 2. Typical GasPTi installation.
equipment.

Description of operation
The GasPT employs the concept of the ‘effective composition’.
This is the idea that a gas composed of hydrocarbons and
nitrogen can be represented by an equivalent, simpler gas
mixture employing fewer hydrocarbons.
GasPTi-LNG uses correlative techniques to infer an
equivalent four-component gas mixture (methane, ethane,
propane and nitrogen). All of the hydrocarbons (including C4+)
are resolved into the three ‘effective’ hydrocarbons by using a
simple process that balances the hydrogen and carbon atoms.
The physical measurements made by GasPTi-LNG are speed of
sound and thermal conductivity. The speed of sound
measurement is made via use of a unique acoustic resonator
Figure 3. GC time slice of gas sample. and speed of sound has a good correlation with relative
density. Thermal conductivity is measured at ambient and
reliable gas quality measurement will require fast scanning elevated temperatures with good correlation to calorific value.
CV devices to provide accurate energy accounting. These measurement devices reside within the auxiliary unit
(AU) GasPT Analyser.
The vital importance of gas From the inferred effective gas mixture of methane,
sampling ethane, propane and nitrogen, the GasPT uses ISO6976 to
No matter which technique is used for gas analysis, it is calculate the gas quality characteristics of CV, RD, WI,
imperative that the gas sample is completely representative compression factor (z), motor octane number (MON) and
of the process gas and that transport delays to the analyser methane number (MN).
are minimal. This can be partly achieved by ensuring a The instrument does not provide a full compositional
continuous flow path from the process to the analyser with analysis of the gas sample, as a gas chromatograph would.
no stagnant gas areas which could contaminate fresh gas However, test results show the GasPT measurements of CV and

54 March 2019
ENERGY SECURITY &
PROSPERITY
for the World

Providing LNG to Global Markets


Sempra
Sempra LNG
LNG &
& Midstream
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Sempra North
North American
American Infrastructure
Infrastructure group’s
group’s efforts
efforts

to
to market,
market, develop
develop and
and build
build natural
natural gas
gas liquefaction
liquefaction facilities
facilities and
and midstream
midstream natural
natural gas
gas

infrastructure
infrastructure to
to offer
offer flexible,
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low-cost and
and reliable
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LNG supply
supply to
to the
the global
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sempralngm.com
sempralngm.com
Sempra LNG & Midstream is not the same company as the California utilities, San Diego Gas & Electric Company (SDG&E) or Southern California
Sempra LNG & Midstream is not the same company as the California utilities, San Diego Gas & Electric Company (SDG&E) or Southern California
Gas Company (SoCalGas), and Sempra LNG & Midstream is not regulated by the California Public Utilities Commission.
Gas Company (SoCalGas), and Sempra LNG & Midstream is not regulated by the California Public Utilities Commission.
in a resonance chamber. Although small (less than a golf ball)
and rapidly purged, this small volume of gas provides a more
continuous time-averaged calculation of the physical
properties of the gas sample. Figure 3 shows the GasPT
spherical acoustic resonator, in which the gas sample is well
mixed and through which five measurements for speed of
sound calculation are made every second.
GasPTi is a unique integration of gas sampling, gas
conditioning and gas analysis which provides rapid and
accurate monitoring of LNG gas quality, with T90 response
time less than 10 seconds and to a CV error less than ±0.5%. A
small LNG vaporiser can be linked to the system and this
avoids partial vaporisation. The system mounts directly onto a
pipeline or can be post-mounted nearby with a short gas
sample line. Typical GasPTi system components are shown in
Figure 4.
GasPTi is ideal for monitoring boil-off gas (BOG) and can
be for control of the reliquefaction process prior to
Figure 4. GasPTi components.
transferring BOG back to storage. Generally, gas metering on
the plants can be accomplished by GasPTi-LNG, particularly
export sales gas being sent out to the downstream, local
transmission or distribution grid. Fuel gas monitoring for
revaporisation heaters, where required, is a further
GasPTi-LNG application. GasPTi can provide calculated
theoretical air requirement (TAR) for air/fuel ratio control
based on the inferred gas mixture.

A range of added benefits


In addition to the advantage GasPTi-LNG has over
conventional GCs in terms of speed of response and accuracy
on changing gas quality situations, there are several further
benefits of this technology. There is a low maintenance
requirement as GasPTi-LNG requires just one validation check
every year using a known test gas and taking less than one
hour to complete. This compares with the considerable effort
required to keep a GC in calibration with skilled labour and
use of carrier gases and reference gases.
The GasPTi-LNG is easy to install, configure and use.
Typically GasPTi systems are installed and configured in a
Figure 5. Options for modification of the modified couple of hours. All communications and operational
Wobbe Index of LNG.1 parameters can be changed online via laptop PC and setup is
very simple. The communications with modems, supervisory
computers and datalogging systems is via RS485 serial
Wobbe have less than ±0.5% error (OIML R140 Class A interface using the international industry standard MODBUS
instrument). protocol. Ethernet transmission control protocol (TCP) /
Because the device is not performing a full internet protocol (IP) or analogue input/output signals can be
compositional analysis, instead measuring physical provided.
properties, the speed of response from gas entering the The GasPTi-LNG is an integrated system with a sample
device to data out is reduced to only two seconds. probe and gas conditioning enclosure which is mounted
Additionally, the device is not taking slices of data; the directly on the pipeline. The unique VE Technology sample
entire sample stream passes through the device and so this probe is provided, which gives fast response, small sample
near real-time monitoring of the entire sample stream and zero probe vibration. This can be seen as having
allows the GasPT to record any perturbations in the sample, operational, environmental and safety benefits over traditional
capturing and recording any preferential vaporisation as GC installations.
previously discussed. There is no requirement for gas sample lines, additional
This additional level of detail of data allows a far more housings or gas cylinder storage as with GCs. This eliminates
accurate mapping of the properties of the vaporised LNG, the need for civil engineering works (foundations for
rather than a periodic snapshot that may be taken during housings) and means the amount of gas flowing through
one of the aforementioned vaporisation-induced GasPTi and vented is typically 10 times less than a GC
perturbations. system.
To further enhance the accurate measurement of The CAPEX cost of GasPTi-LNG is less than GCs and, in
vaporised LNG, the GasPT device measures the speed of sound addition, the overall lifetime cost of ownership is further

56 March 2019
reduced by the GasPTi advantages over GCs in significantly method to calculate the compression factor and correct the
lower installation, commissioning, operational and metered volume.
maintenance costs. CV and WI data in near real-time will produce increased
accuracy for energy flow data that mismatched instantaneous
Options to manage gas and LNG flow and delayed CV/WI data from a GC. Combining GasPT
interchangeability with VE technology provides the opportunity for real-time
The rising worldwide demand and declining native gas management of the network and eliminates the risk of
supply has resulted in a rapid increase in international temporary excursions going unnoticed.
trading of natural gas. With it, brings a focus on the
specification of the gas quality from many different sources Conclusion
and the interchangeability of these gases to maintain the Traditional GC analysers and vaporisers used for LNG property
safety and reliability of pipeline networks and downstream measurement may have issues with speed of response and
equipment. gas sample partial vaporisation. Continuous sampling with
Interchangeability is the ability to substitute one gaseous near real-time analyser response will improve the accuracy
fuel for another in a combustion application without of CV data, particularly if this is averaged over longer time
materially changing the operational performance of the periods. Matching instantaneous volumetric or mass flow of
application (its safety, efficiency or emissions). LNG with gas quality measurement will require fast scanning
Gas specifications vary widely for different countries and CV instrumentation to provide accurate energy accounting.
are usually set to suit the local gas market and equipment. GasPT has undergone comprehensive performance testing
Compounding this with LNG taken from ‘lean’ and ‘rich’ fields in the laboratory and in field trials with CV and Wobbe
ensures that to deliver a suitable gas composition to the measurement less than 0.5% error. Both OIML R140: 2007 (E)
local market in question will most probably require Measuring Systems for Gaseous Fuel and AGA Report No.5
modification of the gas composition by various means, specifically state that inferential techniques such as GasPT are
dependent on many factors. To achieve this modification will capable of providing accurate CV measurement. This has been
require an accurate and fast measurement of the WI further proven by the device obtaining approval by the Office
(Figure 5). of Gas and Electricity Markets (Ofgem) within the UK for use
in directed custody transfer measurement.
Application to LNG GasPT has safety approval from ATEX, IECEx and CSA for
The GasPTi-LNG device has been applied to LNG production use in Zone 0 hazardous areas. It couples GasPT with
(export) plants, LNG regasification (importation) terminals, VE Technology to provide full gas sampling, conditioning and
floating regasification vessels and on LNG tankers for analysis and deliver rapid and accurate CV data on LNG
transportation. Figure 6 gives an indication of the range of applications.
operations where GasPTi can provide the additional benefits As a lower-cost solution than GCs for continuous online
on LNG plants. gas quality measurement, GasPTi can be employed much
wider across LNG operations together with end-user
Benefits applications, resulting in improvement in overall process
Providing the flow computer with near real-time gas quality monitoring, control and energy accounting.
data compensates for any higher uncertainty and overall has
no detrimental impact on the determined volume. The GasPT Reference
method would provide the flow computer with CV and RD 1. BP and IGU, ‘Guidebook to Gas Interchangeability and Gas
that would be used within the AGA8 Gross Characterisation Quality’.

Figure 6. Application of GasPTi-LNG to LNG operations.

58 March 2019
On Auto
Pilot
Fiona Cain, Haynes and Boone CDG, LLP, UK,
looks at advances in autonomous shipping,
and lessons for the LNG shipping industry.
ignificant developments were made last year to make autonomous ships a reality on our

S oceans. In August, Yara, a Norwegian producer and distributor of chemical products, entered
into a shipbuilding contract with VARD for the construction of the world’s first autonomous
and zero-emission electric container vessel, the Yara Birkeland, which is due to be launched in 2020
and operate fully autonomously by 2022. In December, Finferries, the Finnish state-owned ferry
operator, and Rolls-Royce successfully demonstrated the world’s first fully autonomous car ferry, the
Falco, including automatic docking in Finland.
Developments were also made in respect of the regulatory framework for autonomous ships.
DNV GL issued a class guideline covering autonomous and remotely operated ships in September
with the aim of ensuring that the new concepts and technologies required to deliver autonomous
and remotely operated ships meet or exceed the safety levels of conventional vessel operations. In
November, the UK Ship Register signed its first ever unmanned vessel to the flag; the C-Worker 7
was designed and built by ASV Global. Initial steps were also
taken last year by the International Maritime Organization (IMO),
the United Nations’ specialist agency and global authority
responsible for creating and maintaining an international
regulatory framework for shipping and the marine
environment, to ensure that international regulations are
appropriate for autonomous ships – or, as the IMO calls

60
61
them, ‘Maritime Autonomous Surface Ships’ (MASS). This work, operation at sea for a number of years and are generally compliant
which is examined in more detail in this article, will provide the under current IMO rules. It is the move towards remotely
first steps towards dovetailing the regulatory revisions that will be controlled and fully autonomous ships which appears to present
required for MASS with the existing regulatory framework. The issues under the existing rules.
article also considers whether the LNG sector could embrace these The MSC indicated that the scoping exercise will be carried
technological advances and move to fully autonomous or remotely out in two phases:
controlled vessels in the future. z Phase one – review current provisions in IMO instruments and
assess whether they are applicable to MASS and/or whether
MSC’s 99th session they may preclude MASS operations.
At the 99th session in May 2018, the Maritime Safety Committee z Phase two – update the relevant provisions to address
(MSC), the IMO’s senior technical body, endorsed a framework for MASS operations, taking into account the human element,
a ‘regulatory scoping exercise’ to update IMO rules to allow for technology and operational factors.
MASS operations. For the scoping exercise, the MSC defined MASS
as “ships which, to a varying degree, can operate independently MSC’s 100th session
of human interaction”. It also defined the different degrees of Following the MASS Correspondence Group testing the framework
autonomy as: for the scoping exercise against a select number of the existing
z Ship with automated processes and decision support: seafarers rules, the MSC approved the framework and methodology at the
are on board to operate and control shipboard systems and 100th session in December 2018.
functions; some operations may be automated. It was determined that for each instrument related to
maritime safety and security and for each degree of autonomy,
z Remotely controlled ship with seafarers on board: the ship is
provisions will be identified which:
controlled and operated from another location, but seafarers
z Apply to MASS and do not prevent MASS operations and
are on board.
require no actions.
z Remotely controlled ship without seafarers on board: the ship
z Apply to MASS and prevent MASS operations.
is controlled and operated from another location; there are no
seafarers on board. z Apply to MASS and do not prevent MASS operations, but may
need to be amended or clarified, and/or may contain gaps.
z Fully autonomous ship: the operating system of the ship is
able to make decisions and determine actions by itself. z Have no application to MASS operations.

Ships with automated processes and decision support, Once the provisions have been identified which apply to MASS
including navigation and collision avoidance systems, have been in and either prevent MASS operations, or do not prevent MASS
operations but require amendment, clarification or expansion, an
analysis will be undertaken to determine the need to amend
existing instruments, develop new instruments and/or
equivalences as provided for by the instruments or develop
interpretations. It is intended that this regulatory scoping exercise
will be completed in 2020.

Scoping exercise: the likely


changes
At the most recent MSC session, the IMO indicated that the
instruments to be covered by the MSC’s scoping exercise include
those dealing with:
z Safety, namely the International Convention for the Safety of
Figure 1. LNG carrier. Life at Sea (SOLAS), 1974.
z Collision regulations, i.e. the International Regulations for
Preventing Collisions at Sea (COLREGs), 1972.
z Loading and stability, as set out in the International
Convention on Load Lines (LL), 1966.
z Training of seafarers and fishers, as provided for in
the International Convention on Standards of Training,
Certification and Watchkeeping for Seafarers (STCW), 1978,
as amended, and the International Convention on Standards
of Training, Certification and Watchkeeping for Fishing Vessel
Personnel (STCW-F), 1995.
z Search and rescue, as set out in the International Convention
on Maritime Search and Rescue (SAR), 1979.
z Tonnage measurement, in accordance with the International
Figure 2. Will autonomous ships make the bridge obsolete? Convention on Tonnage Measurement of Ships (TONNAGE),
1969.

62 March 2019
z Safe Containers, under the International Convention for Safe the operational decisions for a ship, whether that person must
Containers (CSC), 1972. be on board the vessel.
z Special trade passenger ship instruments, namely the Special z STCW, which sets out standards of training, certification and
Trade Passenger Ships Agreement (STP), 1971 and the Protocol watchkeeping for seafarers to protect life and property at
on Space Requirements for Special Trade Passenger Ships, sea, currently only applies to “seafarers serving on board
1973. seagoing ships”. It has been suggested that this should be
extended to cover shore-based control centre operatives,
Organisations, including AAWA, the Danish Maritime Authority, as well as consideration given to whether additional
MASRWG and INAS, have already considered how some of these educational or training requirements are required by
regulations should be amended to allow for the operation of land-based personnel. The main issue under STCW is the
autonomous vessels and manned vessels under a common watchkeeping requirement and ensuring that autonomous
regulatory framework. The main issue that has been identified so ships have the ability to alert those who are responsible
far is that the regulations were drafted with a human crew in mind for monitoring the ship when issues arise, as well as
and do not anticipate unmanned ships. As a result, changes will be determining how many vessels a watchkeeper can supervise
required to provide for remote controlled and fully autonomous at one time; whether a supervisor could take on the role of
ships. a ‘master’ for multiple vessels and who would be responsible

SOLAS, COLREGs and


STCW
Focusing on three of the key IMO
instruments, the suggested changes to
SOLAS, COLREGs and STCW are as follows:
[email protected]
z SOLAS, which sets out technical hallwoodmodular.com
requirements for vessels at sea,
+1 337 393 2575
including minimum standards
for the construction, equipment
and operation of ships in order to
ensure maritime safety, will need
to be reviewed to determine how
autonomous ships will satisfy the
requirement of safe manning levels
with reduced or no crew members
on board; how an autonomous ship
will render assistance to persons
in distress; how to define various
requirements on visibility when there
is no navigating bridge on board the
vessel; and the need for life-saving
appliances, such as lifeboats on board
a ship which is not intended to carry
seafarers.
z COLREGs is referred to as the ‘rules
of the road’ in shipping and seeks
to avoid collisions at sea. It covers
lookout, restricted visibility, safe speed, 20 Years and Counting...
the Best Protection
steering and sailing, lights and shapes,
sound and light signals, etc., and
regulates the two main navigational
tasks of crew on board ships:
situational awareness and operational
for People and Equipment
decision making. The issues that
have been highlighted in relation
to COLREGS include: whether an
autonomous ship could satisfy the “the
ordinary practice of good seamanship”
without seamen on board; whether
the need for a “proper look-out Blast Resistant Perimeter Protective Site
… appropriate in the prevailing Modular Security Doors Services
circumstances” can be satisfied by Buildings Products & Accessories
cameras, sensors and radars; and if a
person is required to be in charge of

March 2019 63
if the shore-based control centre is in a different jurisdiction had built a big data analytics ship navigation system which
from the ship’s flag. enables self-piloting of LNG carriers. Despite this, LNG carriers are
The work being undertaken by the IMO and MSC is key to unlikely to become fully autonomous or operate without a crew
ensuring adoption of rules for autonomous ships internationally. If onboard for the foreseeable future.
it is decided that new conventions are required to address Safety, which is key to the reputation of this sector, appears to
autonomous ships, these will only come into force when each be the fundamental reason why LNG carriers are unlikely to
convention is signed by a qualifying number of states and will only become autonomous. While cargo supervision systems are already
apply in a particular state once ratified by that state and employed on LNG carriers, a crew is needed onboard to respond to
implemented into local law. If it is possible to provide for any issues that arise with this valuable yet potentially dangerous
autonomous ships by amending existing regulations, then those cargo during transportation. In addition to safety issues, the
changes will be made more quickly and efficiently by the ‘tacit economic savings of a crewless LNG carrier will be minimal. The
acceptance’ procedure, whereby agreed amendments come into size of a typical LNG carrier means that the crew accounts for a
force for all existing parties other than those that have specifically small proportion of its operating costs. Further, while autonomous
objected. ships can benefit from slow steaming ‘just in time’ logistics; for
Autonomous ships may not have to wait for an international LNG carriers, boil-off during an extended voyage would reduce the
framework to be put in place before they can take to the seas. The value of the cargo shipped. The LNG sector is therefore unlikely to
Yara Birkeland, for example, will be operating in a limited be at the forefront of investment in new technology for
geographical region, along the coast of Norway, and therefore autonomous shipping, although it will not be able to operate in
could do so under local bylaws and port authority rules. isolation of autonomy with, for example, the introduction of
autonomous tugs in the future.
Autonomous shipping in the LNG The LNG sector will therefore need to monitor this review of
sector the current regulatory framework and how regulations will be
These developments are of course interesting for the shipping developed for autonomous shipping. It will need to check that
industry in general, but what impact will the introduction of the revised or new regulations will be appropriate to the LNG
remote controlled and fully autonomous ships have on the LNG carriers of today and the future, both in terms of the
sector? technological advances that are embraced by the industry, but
LNG carriers already employ smart shipping technology such also to be aware of how the remote controlled and fully
as navigation and technical management systems and will no autonomous ships that will share the waters and work with LNG
doubt continue to adopt suitable advances in technology. For carriers, will be required to operate and communicate in the
example, Samsung Heavy Industries announced in August that it future.

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Monetising
stranded gas
with micro
scale LNG
Michael Walhof, Siemens, USA, outlines the growing number
of opportunities developing in the micro scale LNG market.
s the world continues to transition away from coal and

A heavier distillates in favour of cleaner-burning sources of


fuel, the role of LNG in the global energy landscape has
grown immensely. While much of the conversation surrounding
the LNG industry in recent years has focused on the development
of large and mid scale liquefaction projects and their importance
in driving natural gas as ‘the fuel of the future’, far less attention
has been paid to the opportunities emerging in the micro scale
LNG market.

65
Micro scale LNG facilities (typically defined as those growing issue at many remote well sites and regions where
with capacities less than 160 tpd or 56 000 tpy) are pipeline bottlenecks have all but eliminated outlets for
increasingly proving to be a viable solution for monetising produced gas. In some regions, it is estimated that
stranded gas reserves and cost-effectively supplying LNG to producers are flaring close to 10% of their produced gas.²
demand centres located far away from supply infrastructure. In 2015 in the Permian Basin in Texas, for example,
In many of these centres, the primary interest in LNG is as a operators flared 45.5 billion ft³ of natural gas, enough to
transportation fuel for truck and heavy-duty vehicle fleets. meet all of the residential demand for the region for two
In the US for instance, there are more than 120 LNG and a half years.³
refuelling stations across the country and more than 1600
CNG stations.¹ Many of these are open to the public, while Turnkey micro scale plants offer
others are private depot-based stations for fleets. many benefits
Opportunities also exist to convert drilling and hydraulic Recognising the growing need for a solution that could
fracturing equipment to run on LNG, enabling oil and gas help monetise stranded gas supplies and open new markets
operators to reduce the environmental footprint of their for LNG as a transportation fuel, Siemens’ Dresser-Rand
operations and reduce fuel costs by as much as 30% when business developed LNGo™ – a turnkey micro scale
compared to diesel. liquefaction solution capable of producing up to
Additionally, micro scale LNG facilities are gaining 30 000 gal./d (48 tpd) of LNG. The system can be installed
traction as a solution to curtail gas flaring, which is a and commissioned within a matter of months and is
designed to produce LNG without external
power, making it deployable at nearly any
site, especially those without access to grid
electricity.
At its core, the LNGo solution focuses on
the use of modular construction techniques
and standardisation to minimise onsite
labour requirements and facilitate
accelerated commissioning. Sections of the
plant can be built offsite and delivered on
small-to-medium-sized skids, resulting in a
minimal footprint and reduced execution
risk for the operator. The modular approach
facilitates ‘plug-and-play’ service, leading to
lower CAPEX and a shorter time to achieve
return on investment.
In 2016, the first LNGo micro scale
natural gas liquefaction system was
commissioned at the Ten Man LNG facility
Figure 1. In 2016, the first LNGo micro scale natural gas liquefaction system
was commissioned at the Ten Man LNG facility in Tioga County, Pennsylvania, in Tioga County, Pennsylvania, US. The
US. system allowed for ‘de-bottlenecking’ of the
existing natural gas gathering network and
enabled Frontier Natural Resources to
monetise stranded gas assets at the
Mainesburg field in the Marcellus shale
formation.
The standardised micro scale LNG
system deployed in Tioga County
consists of four different modules, each
handling one step of the liquefaction
process. The system works by converting
inlet gas to LNG, which is then used as
a process refrigerant. The inlet gas
stream is also used to power the system,
along with purge gas from the gas
conditioning module. The gas
conditioning module cleanses and
separates feed gas into two streams –
one for power generation (purge stream)
and one for liquefaction (product
stream). The product stream is then
routed to the compressor module, which
Figure 2. As part of the compressor module, the proven Dresser-Rand MOS™
reciprocating compressor drives efficient processes. features a four-throw Dresser-Rand®
MOS reciprocating compressor. The

66 March 2019
micro scale LNG system also includes a process module, Scalability and reliability
which houses all of the liquefaction equipment. Scalability was of critical importance for the micro scale
The entire LNGo system for the Ten Man facility was solution deployed at Dawson Creek. AltaGas is currently
transported on just eight trucks and deployed directly at evaluating the viability of developing a network of
the gas field. It has a footprint of approximately 508 m² – small scale liquefaction facilities to supply LNG to
an area similar in size to a basketball court. Production parts of the Yukon, northern British Columbia and the
from the plant started four months from contract signing Northwest Territories. As a result, the system must be able
and the LNGo system produced approximately to accommodate additional production to meet potential
100 000 gal./d (160 tpd) of LNG in its first 20 days of growth in regional demand. The modularity of the system
operation and more than 445 000 gal. through the first satisfies this requirement, as it allows for process and/or
three months. power modules to be added as needed. This ultimately
ensures that the system is optimally sized at all times,
Micro scale applications in harsh allowing AltaGas to minimise CAPEX.
environments Modularity was also important to ensure timely
More recently, Siemens was tasked with commissioning deployment of the system in the harsh environment of
a high-pressure micro scale LNG plant for northwest Canada, where temperatures can drop to as low
AltaGas Ltd’s Dawson Creek site in the Northwest region as -40ºC. The difficult conditions presented many unique
of British Columbia in Canada. Siemens provided a project challenges when installing and commissioning the
completely integrated solution for the project, including facility. By performing a portion of the work offsite, the
one LNGo-HP (high-pressure) system, site civil works, manpower requirements at Dawson Creek were
building construction, mechanical and electrical integration, significantly reduced, and the risk of schedule delays was
commissioning, startup and operator training. minimised.
The system consists of various modules, including two
Siemens gas engines, two MOS reciprocating compressors, Conclusion
three Siemens MV motors (400, 550 and 800 HP), variable The sheer volume of oil and gas production coming from
frequency drives and associated auxiliaries. The system both conventional and unconventional plays worldwide
takes natural gas from the gathering line at the site and represents a generational opportunity for producers and
separates it into two separate streams – a feed gas stream suppliers alike. However, it has also given rise to some
and a waste gas stream. The waste gas stream is routed to challenges. From curbing emissions to alleviating supply
the gas engine generator sets, which power the LNGo infrastructure bottlenecks, there are many problems the
equipment. The feed gas is liquefied in the process to industry must address to grow sustainably.
produce LNG. The entire footprint of the plant is Micro scale LNG facilities are poised to play an
approximately 2500 m². important role in helping the industry overcome these
The Dawson Creek plant began production in hurdles by enabling producers to reliably monetise stranded
January 2018. It was built with one liquefaction module gas supplies, which make up an estimated 40 – 60% of the
capable of producing 30 000 gal./d of LNG. To date, all world’s current proven gas reserves.4 The micro scale
contractual production performance guarantees have been concept also has the potential to accelerate the growth of
met. The LNG produced is trucked approximately 1400 km LNG as a transportation fuel and open up new markets,
to Whitehorse in the Yukon Territory, where it is being used particularly in areas located far away from traditional supply
to displace diesel in power generation applications. sources.
The LNGo systems deployed in Tioga County
and Dawson Creek serve as concrete examples
of the many tangible benefits that can be
realised by embracing micro scale LNG – both
from the perspective of the LNG plant operator
and consumers in the surrounding region.
Siemens is currently in discussions to apply the
micro scale concept in other locations, including
Alaska and Houston.

References:
1. SNOW-MCGREGOR, K. and SHEFFIELD,
J., ‘Has Boutique LNG Gone Mainstream?
(Part 2)’, LNG Industry, (June 2018), pp. 24 – 28.
2. ‘Vast Energy Sources Wasting Away in the
Texas Permian Basin’, Environmental Defense
Fund (EDF), (2017).
3. ‘New Texas Permian oil and gas flaring report
reveals excessive gas waste and major gaps
in operator flaring practices’, Environmental
Defense Fund (EDF), (November 2017).
Figure 3. The LNGo-HP system is a modular LNG liquefaction solution 4. ‘Stranded Gas Utilization – Methane
capable of producing approximately 30 000 gal./d of LNG. Refineries of the Future’, ChemSystems,
(February 2002).

68 March 2019
TAKING CONTROL
Soili Städter, ollowing the decision at the end of 2014 by the Ministry of Economic

Valmet Automation, F Affairs and Employment of Finland, a long-term investment plan for the
largest LNG terminal in the Nordic region was finalised. The Ministry
decided to support investment in an LNG terminal in Tornio, Finland, to
Finland, presents the promote sustainable economic growth in the country. With help from the new
LNG terminal, gas and fuel markets will become more diversified.
system that is helping In addition to this, the Tornio Manga terminal is important locally. It makes
it possible to transport gas to companies outside the existing gas network.
to control operations Investment costs have been approximately €110 million, and the project
required 260 man-years of labour. During this project, 120 people worked at
at the Manga LNG the site. Now, towards the end, only 20 remain. The cornerstone was laid at the
port of Röyttä in September 2015. Commercial operations at the terminal
terminal in Finland. started in 2018, and the project aims to be fully operational by 1Q19.

Figure 1. The
Tornio Manga
terminal chose
Valmet DNA
automation
and integrated
information
system to
control the
demanding
process
operations.

69
Wärtsilä is the engineering, procurement and construction These days, more natural gas can be imported from global
(EPC) contractor, and its delivery included a full containment LNG markets. The last shipments by sea arrived in Finland from the
storage tank with a volume of 50 000 m3, complete ship Netherlands and Norway. Since the terminal is located in the
unloading, LNG truck loading, ship bunkering, plus regasification industrial area of Outokumpu, it has been necessary to build
and natural gas send-out facilities. In addition to this, a pipelines from the terminal to the steel factory. LNG will be
long-term maintenance contract is part of the delivery. vaporised and then sent to Outokumpu and EPV Energy.
Valmet Automation Inc. was contracted to install the process Deliveries to SSAB in Raahe are made by truck, as well as to
automation system, Valmet DNA. Skangas with trucks and later with vessels, too.
At present, Tornio Manga employs seven people. Indirectly, So far, bunkering activities have not yet started. Most
tens of people are employed for truck loading services, port probably the first vessel for bunkering will be the LNG-fuelled
operations, IT and more. icebreaker Polaris. As soon as the sea is covered with ice, the first
tests will be held. Also, deliveries by train can be made when the
A sound base for beginning train rails are built to pass near the port. Today, approximately
Parent company Manga LNG Oy, which buys and sells half of the LNG is delivered by pipeline, the other half using
LNG, is owned by a joint venture (JV) of nearby companies, trucks.
including Outokumpu Oyj, SSAB Europe Oy, EPV Energia Oy
and Skangas Oy. Manga LNG Oy’s 100% owned subsidiary is Automation
Manga Terminal Oy, which invested in and operates the Tornio The demanding process of terminal operations is being
terminal, selling terminal services to Manga LNG Oy and other controlled using the Valmet DNA automation and integrated
customers. information management system. Manga LNG takes care of the
purchases. Manga Terminal stores and delivers LNG and natural
Alternative deliveries gas based on customer requests. In a way, the material advances
LNG is an alternative fuel to replace diesel. It is used as seamlessly. Virtual tests can provide a hint of what is coming, but
fuel in marine traffic, but also in industrial applications. the actual experience in real life is quite different.
Liquefied gas requires a lot less space than its gaseous form, Valmet DNA controls practically everything except the
making it considerably easier to transport and store. It is financial operations. It covers the main processes in the terminal:
also an environmentally friendly fuel, since the emissions of ship unloading; bunkering; storage management; truck loading;
carbon dioxide are significantly lower than those of diesel. gas send-out; and evaporator units. All of the necessary
operational data comes from Valmet DNA from where it can be
transferred to other IT systems.
The factory tests (FAT) of the automation system took place
mainly at Valmet in Tampere, some in a virtual environment. It
is important to note that any project like this can be enhanced
through virtual tests. When the basic planning and methods are
well planned beforehand, all parties are able to participate
easily in the virtual world. Therefore, these customer tests
become more effective, and they are not directly related to the
FAT.
The automation system provides several tailor-made reports.
They are needed for the regulating authorities, for the owners
and for Valmet’s own needs. Valmet is able, for instance, to follow
capacity utilisation rates. The company also has access to the
Figure 2. With Valmet DNA, the operator can select automation system from its office.
their own favourite process windows to display, allowing Manga terminal has made a strong effort to discuss
individualisation and improving safety.
beforehand what kind of reports are needed. Some important
reports are how much gas is sent out, the quality of the LNG and
the number of loadings, amongst other things.

Training during startup


At the moment, the control room is occupied 24 hours a day.
Later on, when the project is completed and everything has
settled down, the work rhythm will most probably be changed
to two shifts, with the long-term target of running partially by
remote control.
Arto Eronen, System Engineer from Valmet, works in the
control room as startup support for the operators. Based at
Valmet’s Kemi office approximately 20 km away, he is located
close to the Tornio terminal and can assist the customer with
Figure 3. Valmet DNA covers the main processes in the
various services.
terminal, including ship unloading, bunkering, storage
management, truck loading, gas send-out and the evaporator “We’re currently discussing the sequences of the evaporator
units. units – whether there have to be any minor changes made. We
have good cooperation with the local operators and with

70 March 2019
Wärtsilä’s operators. For many of us, this is a new, interesting
process during which we all have learned a lot”, he says.
The operators have received some formal training by
Wärtsilä and Neste Jacobs. However, the best education happens
during the startup. Outcomes are better when you step right into
using the automation system, then have colleagues and Valmet’s
specialists around you – giving help or support if needed.

Personal interface
With Valmet DNA, every operator can select their own favourite
process windows, creating a custom operating desktop for their
eyes only. It streamlines the work when all of the operations that
any user needs can be found in the same place.
With four displays, you can bring up 16 windows. A lot of
information is available at the same time. Everybody seems to
have their own ways of designing the windows, and how many of
them are used. This allows the system to do its best work, too.
When the shift starts, operators are able to use their own
individual collection of selected windows, which brings a bit of
individuality, as well as safety, to the operation.

Time machine – a window to the


past
Using the Valmet DNA Operate TEA (the trend and event archive),
also called Time Machine, one can go back in time to the exact
second of an event, riffle forwards and backwards in time, and
get a straightforward account of trends and events. By using
historic data, operators, as well as management, can learn to
anticipate future events.
When using the DNA Operate TEA and History Event, one is
able to understand what has happened and why. The logic is
clearly presented in the display, for instance, if the pressure was
raised or what the positions of the valves were. That way, one
can learn for the future and then avoid similar problems and
situations.
Another functionality often raised is the DNA Report, also
called the diary. It can be useful that, when coming back after
four days free, you are able to return to those days, and read in
the DNA Report what happened while you were gone.

Beyond the present


The outlook for the future is good. Since the business is growing,
more services are needed, with plant volumes expected to grow
quickly in 2019.
Manga already has to consider how to serve its growing
number of customers even better and faster in the future. Until
now, LNG has not been available in this region. More and more
companies are now aware of this new, sustainable gas, and they
are re-thinking the possibilities of using it. This will certainly
change the patterns in the north. Marine traffic will need gas,
and the industry is switching more and more to LNG.
There is still room for another storage tank if needed, and
the whole port area makes expansion possible. Considering more
deliveries, more vessels and more trucks, the terminal will also
need more information about the availability of the entire
infrastructure. Some kind of centralised data collection may be a
solution in the future.
With the growing number of trucks, the timing has to be
planned carefully. As of now, the visibility ends at the pier, and
too much work is done manually. In the future, Manga will focus
on finding a solution to cover the infrastructure to help with the
timing of the trucks and the entire facility.
US LNG:
changing
the
industry

72
Eben Burnham-Snyder, ight now is a revolutionary time for the global

Cheniere, USA, looks at the R energy industry as economic growth continues


across the world, making energy more affordable
and helping safeguard the environment for future
growing role of the US in the generations. It is particularly exciting for American energy,
with LNG from the US taking a leadership role and
global LNG industry. positively changing the global gas market.
The US is now a global energy supplier, and the
abundance of natural gas available in the country is one
of the leading drivers behind this historic change. US oil

73
and gas production growth is being met by multiple future contracts, or approximately 1.4 trillion ft3/d, traded
conventional and shale basins in the country. Currently, on the New York Mercantile Exchange (NYMEX) each day
Cheniere is sourcing gas – nearly 5 billion cubic ft3/d with HH as the delivery point.
expected once fully operational – from basins and shale
plays around North America, including the Eagle Ford, Long-term supplies, led by
Barnet and soon the Permian Basin. Shale accounts for technology
64% of US gas resources. A key driver allowing the US to become a global energy
Total US gas reserves stand at a record supplier is the continued evolution of natural gas
3141 trillion ft3, which represents more than 100 years of production. Most recently, the industry has improved its
current US domestic consumption needs. Of these efficiencies thanks partly to larger wells, with average
reserves, it is estimated that 840 trillion ft3 of resource is initial production (IP) rates more than tripling since 2009;
economic below a US$3/million Btu level. to longer laterals, with average horizontal feet drilled
Additionally, there are more than 305 000 miles of in Marcellus doubling since 2009; and to multi-stage
interstate and intrastate natural gas transmission lines in fracking, with producers increasing the number of stages
the US. This vast network supports production growth, used in the hydraulic fracturing process. Moreover, the
which in turn promotes further investments from US industry has implemented other significant operational
energy players in terms of operation centres, terminals efficiencies over the years to improve drill times.
and processing plants, among other infrastructure. Looking to the future, technological innovation will
Gas is bought and sold across states as a commodity continue to play a key role in the US energy landscape, as
at many different locations, supported by the country’s the industry looks to further reduce costs and increase
unbundled pipelines and its deregulated wellhead prices. efficiencies. Some of these will touch on improved data
Henry Hub (HH) is the central point for gas futures processing, software modelling and real-time monitoring,
trading, with other locations across the US priced in as well as enhanced recovery methods, targeted and
relation to it. HH is highly liquid with more than 150 000 steered drilling, and non-intrusive technologies such as
micro-seismic geophones and electromagnetics. Continued
improvements in drilling and production across the
country make it likely that US LNG will provide a
sustainable and affordable LNG supply for global buyers
over the long run.

Leading US LNG
Cheniere believes that commercial innovation is becoming
ever more critical in the industry, in order to match an
evolving and diversifying set of buyer requirements.
As a leader in US LNG, the company’s projects offer
innovative features, such as destination-flexibility, which
allows buyers to better manage the uncertainties of their
marketplace and respond to changing market conditions;
Henry Hub-based pricing, which allows diversification
Figure 1. In 2016, Cheniere’s Sabine Pass liquefaction facility away from oil-indexation; and upstream gas procurement
became the first facility in the contiguous US capable of services among others.
exporting LNG.
Cheniere is a full-service provider with one of the
largest liquefaction platforms in the
world, consisting of the Sabine Pass
and Corpus Christi liquefaction
facilities on the US Gulf Coast, with
expected aggregate nominal
production capacity of 36 million tpy
of LNG operating or under
construction. Moreover, Cheniere holds
significant pipeline capacity to
support gas procurement. Currently,
the company is the largest physical
gas consumer in the US, and one of
largest firm pipeline transportation
capacity holders in the country.

A growing platform
meeting growing
Figure 2. The more than 1000-acre Cheniere Corpus Christi liquefaction facility is demand
the first greenfield LNG facility in the contiguous US. Just three years ago, in 2016, Cheniere
became the first company to ship

74 March 2019
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LNG from the contiguous US in over 50 years, from its Supporting global consumers
Sabine Pass liquefaction facility. A couple of years later, Global natural gas consumption is expected to grow from
in December 2018, the first cargo from the Corpus Christi 340 billion ft3/d in 2015 to 485 billion ft3/d by 2040,
liquefaction facility loaded and departed. In that time, according to the US Energy Information Administration
over 500 cargoes of US LNG have departed Sabine Pass, (EIA) International Energy Outlook 2017 report.1 An
landing in 30 countries and regions worldwide. important driver of this demand has been regional
The Corpus Christi facility is not just Cheniere’s policy. In the past few years, Asian nations have been a
second export facility, it is also the first greenfield LNG clear example of the secular shift to natural gas driven
facility constructed in the contiguous US, and the single primarily by policy. South Korea and China are two such
largest private investment in the history of the state of examples, and they are two of the top three destinations
Texas. for LNG from Cheniere.
And Cheniere is not done growing, because global In South Korea, a continued economic expansion,
demand is not done growing either. This year, Cheniere limits on coal burn, and a material drop in nuclear
will continue to execute on its growth strategy and is generation, have led to increased natural gas
looking forward to placing Sabine Pass train 5 and consumption. Wood Mackenzie forecasts that South Korea
Corpus Christi trains 1 and 2 into service safely, ahead of will retire 4 GW of coal and 5 GW of nuclear between
schedule, and within budget, just as the company has 2024 and 2031, which would likely make LNG play an
done with all four trains at Sabine Pass. Cheniere’s increasingly critical role in the country in order to achieve
strategy is to continue adding incremental LNG capacity their ambitious renewable energy deployment goals.2
with its proposed Corpus Christi Stage 3 expansion China has also increased its utilisation of natural gas
project, in addition to its land position at both facilities, and LNG demand due to policy actions. The country is
which will enable significant LNG capacity expansion looking to secure diverse and large volumes of new
opportunities. energy imports to fuel its growing economy and achieve
Beijing’s ambitious environmental policy goals. This
demand is driven by China’s ‘13th Five Year Plan’ to
increase the utilisation of natural gas in the country’s
primary energy mix from 6% to over 10% by 2020.
In Asia and many other parts of world, we see a shift
toward a low carbon economy and cleaner burning fuels
in part because of the many benefits to the environment.
LNG can reduce environmental and climatic impacts by
displacing fossil fuels that are more carbon-intensive and
produce higher levels of traditional air pollution and
mercury. In addition to helping improve air quality, cleaner
burning natural gas is complementary with renewables,
Figure 3. Since startup, more than 500 cumulative cargoes providing flexible gas generation to complement
originating from Cheniere’s Sabine Pass liquefaction facility intermittent renewables and ensuring reliable power
have been delivered to 30 countries and regions.
supplies. In the years ahead, as the world’s energy mix
continues to change, LNG will continue to be a
competitive and reliable source of energy that enables a
much cleaner environment.
US LNG has changed the industry, offering an
affordable supply over the long-run, adding flexibility and
transparency to the global gas market, and increasing
energy security by making the global natural gas trade
more competitive and resilient for buyers around the
world. Cheniere believes that the LNG industry will
continue to support economies and communities across
the planet by providing clean, secure and affordable
energy. The company is well-positioned to play a key role
in the future of energy and contribute to the world’s ever
growing energy needs.

References
1. Energy Information Administration, ‘International
Energy Outlook 2017’, (September 2017), https://www.eia.
gov/outlooks/ieo/pdf/0484(2017).pdf
2. GIAM, K. W., Wood Mackenzie, Analysis of Ministry
of Trade, Industry, and Energy of South Korea’s ‘13th
Figure 4. The first commissioning cargo from Cheniere’s Long-term Natural Gas Supply plan for 2018 – 2031’,
Corpus Christi liquefaction facility loaded and departed on (April 2018), https://www.lngindustry.com/liquid-natural-
the LNG carrier Maria Energy in December 2018. gas/06042018/wood-mackenzie-provides-an-analysis-of-
the-latest-south-korean-natural-gas-supply-plan/

76 March 2019
A new
game
plan
Neil Smallwood, FTI Group,
UK, explains how to avoid cost
overruns and delays on large
LNG construction projects.
t is no secret that some high profile LNG projects around the

I world have suffered major cost overruns. The consequences


have been felt by the management and shareholders of major
engineering and construction companies and the operators that
they serve.
On the other hand, there are projects which have managed to
come in ahead of schedule and generate revenue earlier than
expected, with positive financial consequences. This article looks
at some of the lessons learned about the achievement of positive
project outcomes.

78
79
In the past, cost overruns have often been associated Australian LNG projects, which have unfortunately
with LNG projects built in shipyards, rather than on site. experienced major cost overruns and delays during their
The driver to build in shipyards, remote from site, is construction phase. The final CAPEX estimate provided by
plentiful and cheap labour. But this only makes economic the operator is around US$45 billion to be compared to an
sense if the work is carried out to the necessary quality updated figure around US$40 billion in 2017.”1
standards and to schedule. If not, significant labour hours Building in module yards remote from site is not
will still be needed on the project site. necessarily the cause of these problems, however. Large
For example, many Australian LNG projects have cost overruns and delays have also been experienced on
suffered from delayed startup and cost overruns. In these LNG plants built on site. There are examples in the US
cases, LNG plants built in module yards across where the high cost and shortage of labour have
Southeast Asia ended up in Australia with large amounts of contributed to spiralling costs and delays. This puts
insulation and cladding work unfinished or needing repair. immense financial pressure on engineering, procurement
The following is a quote from one of the investors in and construction (EPC) contractors with fixed price
the Ichthys LNG project: “Ichthys is part of a wave of contracts and a fixed project delivery date.
It would be fair to say that, regardless of whether they
were constructed in module yards or on site, few of the
recent multi-billion dollar LNG projects have been
delivered within budget and to schedule.
But on that list of recent LNG projects, there is one
project which has been delivered to schedule and within
budget from module yards in China. To directly quote once
more: “We are proud of the successful launch of all three
LNG trains of the Yamal LNG project less than a year after
the startup of the plant. This constitutes an unprecedented
achievement for the industry.”2
So, perhaps some of these lessons to be learned about
Figure 1. FibaShield showing its extreme damage tolerance the avoidance of cost overruns and late delivery can be
in the ‘hammer test’.
found in Total’s experience of how Yamal was constructed
in Chinese yards.
Early in the construction of the Yamal LNG project, the
construction team from China Petroleum Offshore
Engineering Co. (CPOE) yard recognised the difficulty of
completing modules to meet the aggressive construction
schedule. Working with their insulation service provider
headed by Howard Yu, now of FTI Shanghai, they realised
there was major opportunity for improvement within the
insulation fabrication and installation activity. To meet the
barge sailing dates, it was recommended to CPOE that, as
far as possible, the piping should be pre-insulated. This
meant that the pipe spools would be insulated and clad
prior to welding into position on the modules. This strategy
Figure 2. Yamal LNG, Sabetta, Yamal Peninsula, Russia. LNG was then adopted as far as possible for all insulation
modules built in Chinese module yards.
scopes, including cold conservation, electrical trace heated,
heat conservation and acoustic insulation.
The yard set aside workshops on site to allow
fabrication facilities for insulation and cladding, and a rail
and trolley system was installed to allow for the efficient
handling of pipe spools through the workshop. Onsite
fabrication allowed efficient and accurate preparation of
insulation and cladding, which was then installed in
workshop conditions.
One of the advantages of pre-insulation is that up to
80% of the work can be completed before pressure
testing.
The modules from CPOE left on time fully insulated and
have resulted in no repairs during commissioning. As a
result, the second batch of modules built for Yamal LNG by
LIBERT recognised the advantages and adopted
pre-insulation even more aggressively. In consequence, the
Figure 3. Pipe spools loaded into modules ready for loading modules were delivered early and the LNG plant
onto barges for the Yamal Peninsula. commissioned 12 months earlier than planned, again
without repairs.

80 March 2019
The Premier Event for the
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Traditional insulation – many productivity on site, working at height or over water, can be
hours on the critical path significantly lower than the productivity in a yard.
Cryogenic insulation is very time consuming. Each A significant contributory factor to the delays and cost
linear metre of a 36 in. line can take 30 – 40 hours to overruns for the Australian LNG projects was the repair of
complete. So 1 km of straight 36 in. cryogenic line requires insulation works originally carried out in the module yards.
30 000 to 40 000 labour hours. In terms of project labour
hours, the insulation activity on LNG projects is easily The benefits of pre-insulation
the most significant and time consuming component. Pre-insulating pipes in a dry, safe workshop environment
Furthermore, its significance is magnified because it brings the following key benefits to project execution:
traditionally lies on the critical path to completion. z Significant labour hours removed from critical path.
z Improved quality control and inspection.
Schedule applies extra pressure
Transporting modules built in shipyards to the project site z No delay from adverse weather.
requires barges that run to tight schedules. These tight z No damage to anti-corrosion coatings.
timetables impose pressure on construction tasks in the
yard, especially when they lie on the critical path. Tight z Health and safety benefits.
timetables lead to working long days, shortcuts being taken When pipes can be insulated in a workshop, as they
and supervision/inspection being skimped. were for Yamal, quality is improved because the work is
being carried out under cover, with a workforce more easily
Poor quality costs money controlled than on-site. 80% of the work is executed
Clearly, if work or materials are not installed to the right outside the critical path and therefore not under the same
standard in the yard, the work will need to be redone time pressure. Furthermore, the work is easily inspected in
on the job site where labour is more expensive and less a dry and controlled environment, unaffected by other
available. Often, the increase in labour rates between trades and any delays in their activities.
a Chinese shipyard and Australia, for example, is over For the multi-billion dollar Yamal LNG project, the entire
10 times. And it is quite easy to understand that labour outside battery limits (OSBL) piping was pre-insulated.
Produced in two Chinese shipyards – CPOE and
Zhangiiagang under LIBERT – a total of 145 km of cold
conservation, trace heated and other utility piping was
pre-insulated. The 300 000 m² of insulation was completed
in under 18 months with 1.65 m direct labour hours. The
modules were delivered on time with zero lost time
incidents and fully insulated, thereby minimising work in
Siberia. When they arrived on the Yamal Peninsula, there
was no repair work required and the trains could be
commissioned on schedule.
Incredibly, this approach actually helped Train 2
produce LNG 12 months ahead of schedule.
So here is a construction methodology (to pre-insulate
pipes before positioning and welding) that has been
successfully used on Yamal and other LNG projects, yet is
still not universally employed.
Figure 4. Pre-insulation of pipe spools in CPOE yard, China,
for Yamal LNG. Welds left open for pressure testing. Automated pre-insulation
It is also possible to pre-insulate cryogenic pipelines
automatically by machine. Automated pre-insulation has
been in use since 2007 on LNG plants in Southeast Asia and
Europe. FTI’s FibaShield automated system is designed to be
mobile, with equipment which can be rapidly deployed by a
40 ft container. And a key aspect of FibaShield is its extreme
damage tolerance, perfectly illustrated by the ‘hammer test’,
which can be viewed in Figure 1.
One of the main benefits of pre-insulating by machine,
rather than by hand, is the substantial reduction in labour
hours to insulate cryogenic pipe. As mentioned above, large
cryogenic pipes take 30 to 40 hours per linear metre. In
contrast, by using the FibaShield system, a full 12 m length
will be pre-insulated in less than 30 hours.

Figure 5. Automated pre-insulation reduces labour hours References


significantly. 1. Total Press Release, (13 December 2018).
2. Total Press Release, (11 December 2018).

82 March 2019
Canada has
the answer
Susannah Pierce, LNG Canada, NG Canada is an LNG export project located in

discusses the LNG Canada L Kitimat, British Columbia, on the west coast of
Canada. It represents the largest private capital
investment in Canadian history and single handedly will
project in British Columbia, put Canada on the global map of LNG exporting countries.
At full build out, LNG Canada will consist of four trains
and explains how global with the capacity to produce approximately 7 million tpy
each for a total of up to 28 million tpy. Phase one of the
climate change can be project consists of two trains.
During the seven years of development prior to a
addressed by exporting LNG final investment decision (FID), the approximately five years
of construction that has recently commenced, and the
from Canada. 40 years of operations, LNG Canada has, and will continue

Figure 1. A site rendering of LNG Canada’s


export facility in Kitimat, British Columbia.

83
to, provide substantial benefits to the local community, the global emission total of 43 billion tpy. Canada ranks
Indigenous peoples, the province and the country – jobs, 38th in the world in population, but is the fifth largest
training, infrastructure investment, royalties and taxes. energy exporter in the world. As a result, Canada has a
Getting to an FID, which took place on 1 October 2018, relatively high CO2 emissions per capita, as do all of the
was not easy for LNG Canada’s five joint venture (JV) world’s major energy and resource suppliers as compared to
participants: Shell, PETRONAS, PetroChina, Mitsubishi and countries that do not export energy and natural resources.
KOGAS. In addition to dealing with affordability and global Around the world, many developing countries with large
market forces that impacted the project’s competitiveness, populations and fast-growing economies still rely primarily
British Columbia is considered a province in which major on coal for their energy. China and India for example,
industrial projects are difficult to move forward. A strong represent approximately 33% of global CO2 emissions, have
environmental movement and uncertainty around fast growing economies, and use coal to produce roughly
unresolved Aboriginal (Indigenous peoples) title creates a 60% of their electricity. It is imperative for countries like
complex environment with significant technical risk Canada to help these countries to de-carbonise by
associated with geography and social risk associated with continuing to export lower carbon resources and
opposition to development. technologies to them. Canada also needs to continue to
A key component of social risk is climate change and demonstrate leadership in sustainable development by
greenhouse gas (GHG) emissions associated with a reducing its own CO2 emissions and maintaining a healthy
large scale energy project. British Columbia and Canada economy.
have established targets for GHG reductions into which any
new energy development project needs to fit – 40% Evaluating GHG emissions
reduction from 2007 levels by 2030, and 80% reduction GHG emissions were evaluated as part of LNG Canada’s
from 2007 levels by 2050. environmental assessment, including GHG emissions,
GHG intensity, comparison of LNG Canada GHG emission
The Canadian and global context intensity to other facilities operating around the world, and
As context, Canada’s overall GHG emissions were a lifecycle analysis of GHG emissions from the project and
704 million tpy of CO2 in 2017 – approximately 1.6% of comparison with competing jurisdictions.
British Columbia, the province in which LNG Canada is
located, has put into place some of the strictest regulations
for GHG emissions in the world. The first of its kind
CO2-intensity benchmark for LNG means that LNG exported
from British Columbia to countries like China has to be the
least CO2-intensive, or will have to pay additional costs for
emissions above the benchmark. It sets the province and
the country up as being the best place to source LNG to
help address the global CO2 challenge.
With this backdrop of needing to be part of the global
climate change solution and being located in a province
with an unparalleled CO2-intensity benchmark, LNG Canada
set out to deliver a large scale LNG export plant with
Figure 2. LNG Canada will help to address global climate among the lowest CO2 emission intensity of any LNG plant
change. currently operating anywhere in the world.

Using technology to achieve


climate goals
The technology chosen for LNG Canada is considered world
leading in terms of CO2 footprint efficiency and utilises
aeroderivative gas turbine drives for the refrigeration train,
with renewable energy for auxiliary power imported from
the BC Hydro Grid for the remainder of the facility.
As a result of the use of this technology, combined with
the use of hydro-electric power, LNG Canada will have the
lowest CO2 intensity per unit of LNG produced of all major
LNG facilities in the world based on facilities operating at
this time.

Natural gas has an important role


to play
As demand around the world for energy continues to grow,
it is predicted to increase by at least one-third by 2040,
Figure 3. LNG Canada is located on the west coast of the world will need to develop a range of energy sources
Canada, 650 km north west of Vancouver. to meet this demand. British Columbia is sitting on a
200+ year supply of natural gas that needs new markets

84 March 2019
EXCELLENT DESIGN
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KANON LNG & CNG EXCELLENT


MARINE LOADING ARMS DESIGN

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LNG – CNG – Oils – Chemicals - Food

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 100% EN 1474-1:2009 / ISO 16904:2016 CERTIFIED LNG
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 ONSHORE AND SHIP TO SHIP APPLICCATIONS
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E NGINE E RED FOR GENE RATIONS. WWW. KA N ON . N L


given the shale revolution in the US – Canada’s only Thinking locally and acting
customer. globally
The International Energy Agency (IEA) recently published The recently published scientific study, IPCC special report
its World Energy Outlook in which it found natural gas has a on climate change, paints a dire picture of the work needed
critical role to play to reduce CO2 emissions to limit global to take place, collectively, to address climate change. It
temperature increases to 2ºC. The highest demand for makes the important point that regional thinking, looking
natural gas is in the power sector as a way to meet only at what countries do in their own backyards, without
electricity demand, while balancing intermittent renewable cooperation on a global scale, will be a significant barrier
power. China, a market for LNG Canada’s LNG, stands out to resolving the climate challenge.
with natural gas demand tripling. Much of the demand in LNG Canada has made this argument to government
this country will be met through importing LNG. and stakeholders. The best thing Canadians can do to
While there is currently no global system in place for address climate change is to export lower-emitting forms
British Columbia to receive credit for reducing GHG of energy to replace the use of high emitting forms, such
emissions in another country, natural gas from LNG Canada as coal. British Columbia could eliminate all of its annual
delivered to Asia to generate electricity instead of burning GHG emissions, which is the equivalent of eliminating
coal would reduce global CO2 emissions by China’s GHG emissions for two days, but if
60 to 90 million tpy, which represents more GHGs than the British Columbia exports LNG from LNG Canada to
annual CO2 emissions of all of British Columbia, and displace coal-fired power in China, it is the equivalent of
approximately 10% of Canada’s annual emissions. eliminating between 20 and 40 coal-fired plants, and
In Canada, electricity is provided by 80.6% low carbon more than all of British Columbia’s GHG emissions for an
sources currently, with 58.8% from hydro, 7.2% from entire year.
renewables (solar, wind, biomass) and 14.6% from nuclear. LNG Canada planned the design of its facility using
The remaining 19.4% is roughly split between coal and gas. technology to significantly reduce GHG emissions. The
Canada has called for a phasing out of unabated coal for company demonstrated that living up to climate
electricity production by 2030. Assuming that the coal-fired commitments does not have to mean eliminating an
power is replaced by a mix of renewables and natural gas or important source of jobs and revenue for First Nations,
hydro for baseload power, the overall renewables share of the communities, the province and the country. LNG Canada is an
Canadian grid would increase to a minimum of 85%, making example of how climate action, resource development and
LNG produced in Canada among the world’s most sustainable. economic opportunities can be mutually achievable.b

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Javid Talib, Black & Veatch, loating LNG (FLNG) solutions have shifted dramatically

USA, discusses how


trendlines are pointing up
F from potential to actualisation. Early adopters of this
inventive strategy sought means to move supply to
end-users quickly, efficiently and economically, and 2018
saw the key milestones of Golar LNG’s Hilli Episeyo opening
more eyes – and investments – among new developers. The
as FLNG demonstrates its trendlines are pointed sharply upward.
advantage as a low-risk path With abundant supply from major sources, such as the
US, Africa and the Middle East, and rising import appetites
to return on investment. elsewhere, LNG’s future is robust. Production and shipping

The path
to ROI 87
technologies, particularly FLNG, are maturing and more footprint, making it an excellent choice for clients pursuing
quickly moving supply to demand-heavy markets, which offshore liquefaction solutions. FLNG operations with
should prompt more players — and regional consumers — to multiple smaller trains also benefit from providing
step up. More than ever before, today’s technological manageable offtake capacity to serve single or multiple
advancements offer the ability to monetise stranded gas sales contracts, all while being built within the controlled
resources or export onshore gas and to serve isolated environment of a shipyard anywhere in the world. The
demand pockets. schedule benefits of not having to wait for local permitting
The International Energy Agency (IEA) forecasted in its processes to break ground while ensuring consistent high
‘Southeast Asia Energy Outlook 2017’ that demand for quality in a controlled environment of a shipyard cannot be
natural gas will grow by 60% by 2040, due to rising overstated.
consumption in power generation and industry. One estimate Operators are realising the benefits of shifting away from
holds that, by 2035, more than half of the region’s gas baseload plants on land, and, when asked what Hilli Episeyo’s
demand will be met by LNG. Demand growth for natural gas maiden voyage’s impact on the industry would be, a majority
from India and China, despite each country’s renewable (66%) of survey respondents predicted that small to mid scale
energy targets, reflects an ‘all of the above’ approach to FLNG operations will become more popular.
meeting energy demand that should keep natural gas – and This bucks the trend of traditional thinking that bigger is
LNG infrastructure – in the discussion far longer than many better, or at the very least more economical. Having a
anticipate. smaller operation run with multiple, smaller trains allows
Just as one would weigh the viability of any capital the project to be compartmentalised into bite-sized financial
investment decision, however, FLNG solutions must make packages that investors are more likely to support. In
sense financially to take hold in the market. That is why it is addition, running one 6 million t train at a facility, versus
no surprise that nearly two-thirds of respondents to multiple 2 million t trains, carries special risks.
Black & Veatch’s ‘2019 Strategic Directions: Natural Gas For example, if one 6 million t train needs maintenance,
Report’ survey listed ‘return on investment’ (ROI) as a major malfunctions or goes offline for any reason, the facility’s
driver for making FLNG investment decisions, followed production halts altogether. Having multiple trains not only
closely by lower CAPEX/OPEX drivers. FLNG offers a faster maintains uptime, but offers flexibility to meeting the needs
ROI compared to its land-based rivals as it results in a of offtakers. With natural gas as cheap as it is today, the
shorter period from final investment decision (FID) to market strongly favours the buyer. Gone are the days of long
commercial operation. contracts, therefore securing offtakers for your supply
Proliferation of FLNG projects hinges on the ability to becomes much less predictable. A 6 million t train running at
get them financed, and while FLNG solutions are both one-third capacity suddenly is not a very efficient use of your
complex and technical, it is the financial element that can facility.
present the most roadblocks. While international oil Combining a favourable position with lenders with the
companies like Shell have the means to fund these projects global energy demand forecast makes it understandable to
internally, smaller outfits must make the financial forecast of be excited about the future of FLNG. LNG is a clean fuel
their FLNG operation look appetising to investors. without the intermittency issues that renewables face today,
With the successful commencement of commercial and as energy projects spring up across the globe,
operation in the books from the world’s first converted FLNG developers are entering the market as confidence in the
vessel, the Hilli Episeyo, traditional on-land LNG export economics of smaller scale LNG soars. When developers are
production plants are no longer the only viable options. not in a position to satisfy guarantee demands of lenders,
Furthermore, FLNG facilities are proving to be a lower-risk particularly when project costs reach into the billions of
opportunity for investors as they offer a quicker speed to dollars, it becomes exceedingly difficult to make progress on
market, are not fixed to one location and have greater large scale projects. This applies to both large FLNG and
operational flexibility with smaller multiple trains. Another land-based facilities. Developer entry into the market is a
key advantage is that because they can also be built by strong indication that the successes of small to mid scale
repurposing existing assets, FLNG projects also have a faster FLNG facilities are putting investors at ease.
delivery with a lower CAPEX burden. In today’s low-priced environment, it is critical that
For example, by using its patented PRICO technology on investors start seeing their return as quickly as possible. The
the Hilli Episeyo, Black & Veatch is able to leverage PRICO’s larger land-based LNG facilities are more complex, can not
minimal equipment requirements and compact process scale down to match fluctuating offtaker demand, and can
take upwards of four to five years before coming online.
FLNG is simply a faster solution for moving supply with a
much lower financial risk for investors.
Now that FLNG as a solution for monetising and
exporting from both nearshore gas reserves and land-based
pipeline networks has proven to be feasible, what’s next?
The demand for cleaner, cheaper energy is on a steady
incline, and the operational and financial flexibilities of
FLNG are on full display. With a more efficient and
Figure 1. What are the major drivers for making floating economical solution now a reality on the open market,
LNG (FLNG) investment decisions (select top three choices). operators and developers are primed to explore just how far
and how fast this ship can take them.

88 March 2019
LASER
PRECISION
MEASUREMENT
W. Scott Sutherland, SpectraSensors, Inc.,
an Endress + Hauser company, USA, discusses improved
metrology in the chemical composition of LNG using
Raman spectroscopy.
lobal gas consumption has seen an average growth According to a recent IGU World LNG Report,2 the

G of 1.5% per year since 2010, and more than double


that rate from 2016 to 2017. Over that same period,
global liquefaction capacity has increased by an average
average shipload of LNG in 2016 was approximately
150 000 m3. The average capacity of new ships built in
2017 has increased to over 170 000 m3. With LNG trading
of 6%, and global regasification capacity has increased by at landed prices averaging close to US$9/million Btu, and
an average of 5%. Global trade saw slow but steady growth assuming an average LNG energy content of 1050 Btu/ft3, a
during the first part of the decade and has seen a more single shipload is valued at close to US$75 million. This
significant rise since 2015.1 emphasises the financial risk associated with any

89
uncertainty in the measurement of the energy of the LNG Corrections are also made for the net energy of the
being transferred. A decrease in uncertainty of the energy displaced gas during the transfer (Egas displaced) and the
transferred of just 0.2% would equate to a reduction in energy of any of the gas consumed by the ship during
financial risk of almost US$150 000 per average shipload transport or offloading (Egas consumed), which may either be
of LNG. measured, or both parties may agree to estimate these as a
fixed quantity. Several articles have been published on the
Background financial risk and exposure during custody transfer, but
The custody transfer of LNG is usually based on a have mainly focused on how to reduce the uncertainty in
measurement of the total energy transferred between the LNG flow measurements.4, 5 This article will provide details
two parties. The LNG Custody Transfer Handbook,3 prepared on recent developments focusing on the reduction of the
by the International Group of Liquefied Natural Gas uncertainty in LNG composition measurements, which
Importers (GIIGNL), is widely accepted as the reference impacts both the density and gross calorific value
document that defines how the total energy transferred components of the energy equation above.
should be calculated. The handbook provides the following
formula for calculating the energy of the transferred LNG: Measuring LNG composition with
gas chromatography
Precise measurement of the composition of LNG is critical
to the determination of the energy transferred. The
most common method for measuring the composition of
VLNG is the volume in m3, DLNG is the density in kg/m3, natural gas is gas chromatography (GC). GCs provide fast,
and GCVLNG is the gross calorific value in million Btu/kg. reliable measurements, but the sample to be measured
must be in the gas phase. Thus, for the analysis of LNG, a
means for sampling and vaporising the LNG is needed.
ISO 8943 defines the requirements for the proper
sampling of LNG, including continuous and intermittent
sampling approaches. Obtaining a representative sample of
the LNG and ensuring that the sample composition is not
altered during the vaporisation process is the most critical,
and most challenging, aspect of analysing LNG using a GC.
The sample vaporiser must be designed to ensure
proper and complete vaporisation. The location and
orientation of the sample probe and proper insulation
throughout the system is essential to ensuring proper and
stable performance. Vacuum jacketed tubing, with short
lengths and proper insulation, is also highly
recommended. Proper maintenance of the vaporiser is
essential, which includes checking various flow rates and
Figure 1. Comparison of tunable filter spectroscopy (TFS) temperatures of system components and the condition of
and gas chromatography (GC) results for LNG composition
insulation. Data collected outside of stable sampling
analysis (image composited from figures found in reference
number eight). times or during interruptions in temperature, pressure, or
LNG flow must be removed,6 due to the adverse impact
these changes have on proper vaporisation and GC
analysis.
The largest contribution to the uncertainty in these
systems is from the vaporisation process.7 Recent
advancements in the design of vaporisers have reduced this
uncertainty, with results on field data from ship-to-ship
transfers showing improvements of approximately 40%
versus conventional vaporiser systems.8

Optical spectroscopy as an
alternative to GC
Optical techniques, including mid-infrared and
Raman spectroscopy, have been developed for LNG
measurements. One commercially available system is
based on infrared spectroscopy and utilises tunable filter
spectroscopy (TFS). This system purports to produce
real-time multicomponent gas measurements. Figure 1
shows typical results comparing the TFS device and a GC9
Figure 2. Comparison of LNG measurement results from
a vaporiser/GC and from a Raman instrument using a and demonstrates the higher frequency of data collection
fibre-optic probe to measure the LNG as a cryogenic liquid. provided by the TFS analyser and equivalent accuracy. This
figure also illustrates one significant short-coming of this

90 March 2019
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TFS analyser. The sample must be in the gas phase, so the system. The Raman results provide equivalent measurement
solution requires vaporisation of the liquid LNG sample accuracy to the vaporiser/GC data and illustrate the
prior to analysis. Thus, the TFS approach does not improve significant improvement in uncertainty of the measurement
on the uncertainty of the measured component values, or of each component that results from measuring the sample
the derived Btu values, when compared with the complete as a liquid.
vaporiser/GC solution. The European Gas Research Group (GERG), along with
its member organisations, works to keep Europe
Measuring LNG composition with competitive and energy secure with respect to its energy
Raman spectroscopy system. The GERG Secretariat works through its
Raman spectroscopy is a high resolution optical technique GERG Program Committees and external stakeholders to
capable of providing composition information for both develop collaborative projects which keep Europe’s gas
gaseous and condensed phase mixtures. Laser light industry at the forefront of energy innovations. One
interacts with molecular vibrations of the components ongoing project in the GERG PC LNG portfolio –
of the gas sample, with some of the incident light losing Raman Spectroscopy for Inline Analysis of LNG Quality
discrete amounts of energy to excite vibrational modes – allows GERG members and interested parties to
in the molecules of the sample. The resulting Raman participate in providing input to the final evaluation of the
scattered light has a different colour than the original laser performance of Raman technology for composition
light, and each different type of molecule generates one or measurement of LNG.11 At the completion of the project,
more colours that are unique to that molecule. The Raman members will participate in an industry workshop to
detection module strips out residual scattered laser light present the final results to the wider LNG community and
and simultaneously measures both the colour and intensity regulators.
of Raman scattered light from each chemical in the sample
mixture. The wavelength (colour) of a Raman peak is used Calibration and validation of
to identify a particular component in the sample, and the Raman analysers for LNG
intensity of the peak is proportional to the concentration ASTM D7940-14 describes the standard practice for the
of that component. With gas-phase and cryogenic liquid analysis of LNG and other light hydrocarbon liquids by
phase samples, the Raman peaks generated are often fibre-coupled Raman spectroscopy, and covers calibration,
sufficiently narrow and isolated from one another that instrument standardisation, validation, installation and
simple, peak-area based quantitative methods can be used metrology. Once the composition of the LNG data is
instead of the use of complex chemometric models, greatly determined, derived properties, such as gross heating value
simplifying the development and maintenance of methods. and Wobbe Index are calculated following commonly used
The RamanRXNTM and OptografTM analysers from standards, including ASTM D3588, GPA 2145, GPA 2172 and
Kaiser Optical Systems, Inc. (Kaiser) use lasers in the visible ISO 6976.
and short-wave near-infrared region, which are compatible One major challenge in measuring LNG as a cryogenic
with transmission along low-cost fibre-optic cables. This liquid is the lack of certified reference materials for field
allows fibre-optically coupled probes to be placed directly calibration/validation. Instrument standardisation and
into the process stream up to hundreds of meters from the calibration transfer allow an analysis method developed on
main instrument. For the analysis of LNG, a cryogenic one instrument to be used on other instruments while
probe, such as the PilotTM probe from Kaiser, is inserted achieving the same result without having to calibrate every
directly into the LNG sample, either in the main transfer instrument on primary standards. As described in the latest
line, or in a bypass loop.10 Because the probe is in contact version of the Custody Transfer Handbook,4 standardisation
with the LNG liquid, no vaporisation is required, resulting of Raman instruments requires that each unit be calibrated
in a significant improvement in the uncertainty of the for both its wavelength (X) axis and intensity (Y) axis.
measurement. Figure 2 compares the results of Raman For wavelength calibration, ASTM E1940-96,
measurement of cryogenic liquid LNG to a vaporiser/GC Standard Guide for Raman Shift Standards for Spectrometer
Calibration, describes the standard
practice for the X-axis calibration of
Raman spectrometers. In addition, the
wavelength of the laser source should
be routinely checked and corrected if
any shift in the wavelength is detected.
Both protocols are an integral part of
every Kaiser Raman analyser. The net
result is that Raman peaks are locked
to their correct Raman shift locations
on every scan, effectively providing
automatic correction for any possible
peak shifting that might occur.
ASTM E2911-13, Standard Guide
Figure 3. A Pilot probe installed at the take-off point on the main transfer line, and
a chart comparing the Raman analyser and GC results for the analysis of multiple for Relative Intensity Correction of
ship-to-shore LNG transfers during the two-year trial period. Raman Spectrometers, describes the
standard practice for correcting the

92 March 2019
Pre-insulated pipe.
On time. On spec. And on budget!

In the past, insulation of pipe has been So when you are up against it to deliver Main image:
a labour-intensive business, performed your next project on time, which insulation
Pre-fabricated pipe section being
under time pressure within the critical system would you rather have? The one
lowered into place on site
path to project completion. which adds more time, cost and risk to
your schedule, or the one which arrives Smaller images, left to right:
However, specifying FTI’s FibaShield on a lorry?
pre-insulated pipe system can eliminate up FTI FibaShield being applied in the
to 80% of the on-site labour hours from off-site workshop
the project schedule, boosting delivery of
Finished pipe ready for delivery
your project on time. SEE US A
LNG 2019 T FibaShield pipe runs have minimal joints
FibaShield is produced off-site in a mobile SHANGH
workshop, removing the insulation BOOTH 4 AI and no HDPUR at supports
process from the critical path and in 233
conditions allowing full process and quality
control. The resulting engineered product
substantially reduces the number of
joints and removes the need for HDPUR
at supports, saving 20% or more of your
installation costs. And the pre-insulation

FibaShield

budget is fixed – not subject to cost
escalation like traditional methods.

T: +44 (0) 1749 881 920


E: [email protected]
W: www.fti-group.co.uk
trucks are parked on a scale
and weighed before and after
being loaded with LNG. LNG
quality is also measured, and the
results documented as part of
the transfer. During the initial
evaluation, LNG was analysed by
both the Raman instrument and
a vaporiser/GC system. The site
loaded an average of three trucks
per day, with a peak of eight
trucks per day. Loading of a single
truck takes 30 to 60 minutes. LNG
vaporisation occurs via ambient
Figure 4. A Pilot probe installed in the rundown line from the storage tank to the truck
loading hose, and a chart comparing the Raman analyser and GC results collected over a heating of LNG as it is pumped
period of three and a half months. through a 300 ft length of 0.25 in.
stainless steel tubing.
Figure 4 shows a photo of the
intensity profile (Y-axis) of each Raman instrument. The Pilot probe installation and a comparison of typical data
protocols called out in ASTM E2911-13 are used to collected from both the Raman analyser and the GC.
standardise each instrument so that a Raman spectrum According to the plant operators, the Btu value of the
collected is the same for any instrument. The method incoming natural gas at the facility is very constant
developed using standard reference LNG samples on one year-round. The Raman data is consistent with this claim,
instrument can be used on any other instrument with the whereas the GC results show significant variation. This
same results. Once installed in the field, each instrument is variation is most likely due to errors in the vaporisation of
standardised to that the instrument provides identical the LNG.
results as it did while in the factory, and that these results
are fully traceable to the development analysers, reference Conclusion
LNG samples and, ultimately, to the PRGM standards. Kaiser The uncertainty in the quality of LNG during custody
has developed tools for implementing full instrument transfers results in significant financial risk for both parties
calibration in both laboratory and field settings. involved. Significant advances have been made to reduce
the uncertainty in the measurement of the volume of
Case study: baseload LNG LNG traded. By measuring LNG directly in the liquid state,
terminal Raman spectroscopy provides a viable option to removing
A Kaiser Raman LNG analyser was installed at a baseload the uncertainty in composition analysis by eliminating
facility in a take-off point on the main transfer line the vaporisation step required for other measurement
also used by a vaporiser/GC system, allowing for direct techniques.
comparison of the two systems on the same LNG
compositions. The Pilot probe tip was immersed in the LNG. References
In addition, periodic samples were collected and sent to a 1. International Gas Union Global Gas Report, 2018.
laboratory for analysis. 2. International Gas Union 2018 World LNG Report.
This baseload facility was chosen, in part, due to the
3. ‘LNG Custody Transfer Handbook’, GIIGNL, 5th Edition
wide range of incoming LNG quality received at the facility. (2017).
The Raman instrument was installed and collected data for 4. DUPUIS, E. and HWANG, G., ‘Custody Transfer: Flowmeter
almost two years, requiring minimal maintenance other as Cash Register’, Control Engineering, (Vol 57, No 9,
November 2010).
than offloading of data and software updates. Figure 3
5. HELMINSKI, K., ‘Reducing Measurement Uncertainty’,
shows a photo of the probe installed at the existing
LNG Industry, (April 2014), pp. 47 – 51.
take-off point, and a chart showing the calculated Btu
6. THOMPSON, K., ‘LNG Composition Measurement
results for multiple ship transfers that occurred during the Challenges in the Field’, presented at the Metrology for
evaluation. The large spikes in the data collected from the LNG Workshop, Brondby, Denmark, (19 May 2015).
vaporiser/GC were ultimately attributed to some leakage in 7. KENBAR, A., ‘Assessment of LNG Sampling Systems and
the vaporiser/GC system. With those outlier results removed Recommendations’, presented at the 13th International
North Sea Flow Measurement Workshop (Tongsberg,
from the data prior to data comparison, the Raman analyser Norway 2013).
produces 10 to 20 times lower uncertainty in the 8. MUL, C. and VISSER, H. P., ‘Put to the Test’, LNG Industry
CV measurement than the vaporiser/GC analyser. (July 2016), pp. 75 – 80.
9. SAPTARI, V., ‘Break-Through Optical Sensor for Natural
Case study: small scale LNG truck Gas Composition Analysis’, MKS application note, (2015).
loading facility 10. SNYDER, J., CAPERS, R. M, FAIRCHILD, R. C. and
WIEGAND, P. M, ‘Taking a closer look…’, LNG Industry,
A Kaiser Raman LNG analyser was installed at a
(Autumn 2009).
peak-shaving facility to monitor the quality of LNG being
11. GERG Activity Report 2016-7, http://www.gerg.eu/public/
loaded onto trucks for transport. The site has a single uploads/files/GERG_ACTIVITY_REPORT_2017_amended.
LNG storage tank with a capacity of 4.8 million gal. The pdf.

94 March 2019
Jean-Pascal Biaggi, arine facilities and associated

TechnipFMC, France,
presents cryogenic
M LNG transfer systems are costly
for LNG receiving terminals and
can determine the financial attractiveness
of an entire project. This is particularly
true when extended distances (several
pipe-in-pipe technology as kilometers) are required between the
shore and the loading/unloading berth.
a cost-effective solution for
the LNG industry.

95
Cryogenic rigid pipe-in-pipe (PiP) technology that can C-PiP technology
enable subsea transfer and aerial or underground onshore In order to decrease CAPEX and OPEX related to LNG
applications provides an effective means to reduce costs. transfer, TechnipFMC has developed a range of large
PiP technology has been widely used by the oil and cryogenic rigid PiPs for LNG transfer over long distances.
gas industry for high pressure/high temperature TechnipFMC C-PiP technology is illustrated in Figure 1:
applications, particularly in the subsea arena to address z A 36% Ni Iron alloy, also known as Invar™, is used
oil flow assurance issues. for the inner flowline ensuring fluid transport and
Small and medium size cryogenic PiP (C-PiP) providing the required gas and liquid tightness. It
technology, for the handling of liquid helium, oxygen or has sufficient mechanical strength to cope with
nitrogen, has been used by the industrial gas industry, all operational loads, such as design pressure and
including by companies such as Air Products, Air Liquide temperature. Thanks to a very low contraction
and Linde, for a long time. coefficient, Invar allows the inner pipe to be
Using an innovative combination of proven mechanically connected to the outer pipe, which
technologies, a new cryogenic rigid PiP technology for then allows the assembly of a true PiP in terms of
LNG transfer and a wide range of applications, including construction and installation.
subsea, nearshore and onshore projects, has been
z A silica-based aerogel (nanoporous material)
developed, fully qualified and industrialised.
insulation entirely fills the gas tight annular space.
More generally, and for several onshore and nearshore
applications, the C-PiP technology provides various z An outer steel pipe (carbon steel or stainless steel
benefits including cost reductions, compared to more depending on project requirements) with anticorrosion
conventional cryogenic pipes. coating ensures mechanical strength and air, water
This C-PiP technology has become one building block and moisture tightness for all external environmental
of TechnipFMC’s global offering for offshore/nearshore and functional loads, including temperature, pressure
LNG transfer architectures and solutions that also include and supporting.
the Chicksan-based mechanical loading arm technologies
and the cryogenic flexible hose technologies (Mark 1, Invar supplied by Aperam Alloys Imphy has been widely
Mark 2, bunkering), both of which have been developed used in the LNG industry, in particular for membrane type
and commercialised. The concept of jettyless LNG loading LNG carriers. In addition, 36% Ni Alloy LNG transfer lines
has become feasible with those technologies. are referenced at the Ohgishima terminal extension by
Tokyo Gas. This alloy has also been widely used for
cryogenic piping outside the oil and gas industry.
Silica-based aerogel has been extensively used for
subsea PiP projects and tested for LNG PiP applications
during a 2004 large scale test program – the Bishop
regasification process (direct regas to salt caverns)
– supported by the US Department of Energy (DoE). It also
has been used in a wide range of applications and
Figure 1. Cryogenic PiP cross section. industries including the US aerospace industry.
The outer pipe material will usually be made of
carbon steel, although a nobler metal, such as stainless
steel A304 L, can be used on aerial or buried PiP
technology if a full double containment is required by
regulations. The pipe is pre-coated with an anticorrosion
protection (3-LDPE, PE, FBE or special painting). For
subsea PiP, the outer pipe wall thickness can be
substantially increased to provide for on-bottom stability
Figure 2. C-PiP underground installation in casing (left
image). C-PiP lines subsea installation integrated in bundle
and protection against impact.
with utility lines (right image). Spacers made of dense plywood are inserted in the
annular space along the pipe. They support the weight of

Table 1. C-PiP lines design and performance (adjusted for specific project requirements)
C-PiP lines design 2 x {10.750 in. Invar inner pipe x 18.000 in. CS outer pipe}
Total length 2 x 1300 m = 2600 m
Insulation 66 mm aerogel + low pressure in annulus (300 mbar abs.)
Coatings 5.0 mm polypropylene + Carboguard + cathodic protection
Overall heat transfer coefficient 0.10 W/m2 ºC
Heat ingress, subsea section 18 kW for 32ºC maximum seawater temperature/17 kW for 25ºC average
Boil-off gas (BOG) losses over year 1080 tpy per line
Maximum allowable operational pressure 35 barg (for surge pressure)
Pressure drop Δp = 0.9 bar (500 m3/hr per line)/flow velocity = 2.5 m/sec.

96 March 2019
the inner pipe, facilitate the introduction of the insulated z Much reduced boil-off gas (BOG) losses.
Invar pipe joint into the pipe carrier sections and z Superior fire resistance of the LNG transfer line
accurately centralise the inner flowline. thanks to the steel outer pipe and the heat resistance
The annular space is filled with an inert gas, such as characteristics of aerogel at high temperature.
nitrogen or argon, either at atmospheric pressure or below
atmospheric pressure (typically 200 to 300 mbar abs) z Long-term integrity similar to a conventional subsea
should the need arise to limit heat ingress further. or onshore pipeline.
Similar to membrane type LNG carriers where the z Compliance with oil and gas industry codes and
two insulation spaces are permanently flushed with standards (ASME B31.3 or 31.5 onshore, API RP 1111 +
nitrogen, the annular space will be regularly flushed API STD 1104 offshore, DNV OS-F101 subsea).
with inert gas. With proper gas detection at both ends, it
z Intensive prefabrication (double-jointing in workshop),
is possible to continuously monitor the tightness of the
which minimises field jointing on site not considered
Invar flowline. Fibre optic temperature measurements
attractive for a conventional solution.
(DTS Raman and DAS Brillouin technologies) in the
annular space along the pipe allow detection and z Simplified on-site construction since the C-PiP lines
localisation of a leak with an accuracy of ±1ºC and a can be assembled from only one ‘firing line’ station,
spatial resolution of ±1 m.
These two independent leak detection techniques
operated together comprise the C-PiP Continuous Integrity
Monitoring System (CIMS), a simple instrumentation that
can monitor all operating parameters of the PiP and plan
maintenance and regulatory tests.
The design has been validated using finite element
analysis. Conical bulkheads provide the mechanical
connection between the inner flowline and the carrier pipe
at the end of each straight section. The bulkhead is shaped
to minimise heat conductivity while providing streamlined Figure 3. Spoolbase and firing line principles for stalks
assembly from prefabricated double-joints or quad-joints
stress and load transfer between the two pipes. (left image). C-PiP riser section at a nearshore loading berth
Thanks to excellent weldability of Invar with stainless (right image).
steel, the PiP can be jointed at each extremity with the
stainless steel pipework.
The outer carrier pipe is not designed for significant
positive pressure. To protect the outer pipe against an
inner pipe leak, pressure safety devices including valves
or bursting disks are provided at each pipeline extremity.

C-PiP technology advantages


Compared to conventional solutions, C-PiP technology
offers several technical benefits:

z It can be straight (the thermal expansion coefficient Figure 4. Cryogenic pipe-in-pipe.


of Invar is approximately 10 times less than stainless
steel), avoiding the
need for expansion Table 2. Case Studies at small, medium and large scale facilities
loops.
Small scale LNG Medium scale LNG Large scale LNG
terminal terminal production plant
z Invar exhibits
Marine facilities Jettyless Jettyless Conv. jetty and berth
high strength and
2 x (10 x 18 in.) – subsea 2 x (18 x 24 in.) – subsea 2 x (26 x 32 in.) – aerial
ductility at cryogenic C-PiP system
No natural gas return No natural gas return + natural gas return
temperature, excellent
Distance 1300 m 3000 m 2300 m
weldability and very
low stress levels in Design flow rate 1500 m3/hr 4000 m3/hr 12 500 m3/hr
operation, compliance Loading duration 12 hr 12 hr 14 hr
with ASTM A 333 Gr11. Energy transferred per
405 000 million Btu 1 080 000 million Btu 3 937 500 million Btu
loading
z Minimum lengths and
Indicative additional
space in terminals and LNG selling price to
US$0.6/million Btu US$0.4/million Btu US$0.15/million Btu
on jetties. cover loading system
CAPEX (US$/million Btu)
z Simpler pipe supports,
On an EPCI basis, it is difficult to quote accurate CAPEX figures since project specifics, such as location,
guides and collars environmental conditions and local industrial capabilities, will have an impact on the total installed cost.
replace anchors and However, the specific cost of a LNG transfer system based on C-PiP technology can be related to the LNG
delivery price.
cold shoes.

March 2019 97
which also means a substantial reduction in the z DNV statement of feasibility and fitness for service for
construction schedule. subsea application (according to DNV-RP-A203).
z Complete built-in instrumentation (pressure, temperature, All procurement and fabrication processes have been
gas detection), enabling continuous monitoring of Invar fully industrialised in partnership with Serimax for
pipe integrity and insulation performance. welding and Aperam Alloys Imphy Invar for M93 coils,
plates and special filler material supply.
z Possibility of double containment.

C-PiP design can be adopted for different applications: Small scale LNG terminals:
z Aerial (on a jetty or a pipeway) or buried; onshore or jettyless architectures
nearshore applications. A sea island loading station using an SBM tower or CBM
can be linked to shore using the C-PiP technology:
z Subsea; nearshore or offshore applications.
z Suited to small LNG carriers (15 000 – 30 000 m³).
As a result, various solutions can be designed and
developed to meet all of the project specific requirements, z Water depths ranging from 12 m to 25 m.
including installation issues. z Benign weather conditions, but berth to be designed
On-site fabrication processes and methodologies for hurricane/cyclonic storms.
originate from TechnipFMC expertise in spoolbase
z Distance from shore line: 1100 m.
operations, and marine works also call for conventional
subsea pipeline installation techniques, including tie-ins z Onshore section to LNG receiving facilities including
to platforms/berths. storage tank at 200 m.
z Subsea LNG transfer system: twin LNG loading lines
C-PiP technology qualification enabling recirculation between two consecutive
status and industrial maturity loadings and no natural gas return line, 1000 m³/hr
The C-PiP technology has been fully developed and flow rate.
qualified, including full scale tests at cryogenic
temperature and detailed mechanical analyses necessary Conclusion
to obtain third party certification: In conclusion, C-PiP is available for use in LNG terminals. It
z ABS approval in principle, Bureau Veritas (BV) concept has unique properties, reducing costs, enabling new loading
approval. system configurations and more sites to be considered.

CEROBEAR Hybrid Bearings for LNG Pumps

CEROBEAR offers a special, field CEROBEAR LNG bearings offer: Z Load Situation adapted
proven hybrid bearing specification Bearing Type
for the use in LNG pumps. Z Si3N4 ceramic balls Z Extended Operating Life
The internal bearing design and all Z High-Nitrogen-Steel races Z Highest Reliability
materials are carefully chosen for Z Media Lubrication Qualification Z Extreme Corrosion Resistance
optimized bearing performance at Z Reduced Total Operation Cost Z Maximized Load Capacity
cryogenic temperature.

CEROBEAR GmbH • www.cerobear.com • Kaiserstr. 100 • 52134 Herzogenrath • Germany • +49 240795560 • [email protected]
LNG 2019
preview Visit LNG Industry
at stand 3348
LNG Industry previews
a selection of companies
that will be exhibiting
at this year’s LNG 2019
in Shanghai, China
(01 – 05 April 2019).

99
Air Products – Stand 3207
A
ir Products is a world leader in natural gas liquefaction world’s standard due to their reliability, high efficiency and
technology. Its experience extends from plants operational flexibility. In addition, the company’s equipment
producing less than 0.1 million tpy LNG to the largest has been selected for the world’s first floating LNG facilities.
baseload plants in the world using its AP-X® LNG process. With over 50 years of LNG experience, Air Products has
Air Products’ MCR® main cryogenic heat exchangers and built more than 100 LNG heat exchangers for customers in
natural gas liquefaction processes contribute to setting the 20 countries worldwide. Air Products also provides both
nitrogen and natural gas dehydration membrane systems for
offshore platforms, membrane nitrogen generators for LNG
carriers, and land-based membrane and cryogenic nitrogen
systems for LNG import terminals and baseload LNG plants.
Air Products supplies industrial gases and related
equipment to dozens of industries, including refining,
chemical, metals, electronics, manufacturing and
food & beverage. The company had fiscal 2018 sales of
US$8.9 billion from operations in 50 countries.
Approximately 16 000 passionate, talented and committed
employees from diverse backgrounds are driven by
Air Products’ higher purpose to create innovative solutions
that benefit the environment, enhance sustainability and
Figure 1. An Air Products multicomponent refrigerant
(MCR®) main cryogenic heat exchanger ready for shipment. address the challenges facing customers, communities and
the world.

Atlas Copco Gas and Process – Stand 3535


G
reat ideas transform industries: Atlas Copco Gas and customers handle today’s pressures while creating a
Process helps customers prepare for tomorrow by sustainable future.
designing, building and servicing turbocompressors, Atlas Copco Gas and Process is a division of the
gas screw compressors and turboexpanders for the oil and Compressor Technique business area, headquartered in
gas, power generation and industrial gases industries. The Cologne, Germany, with additional production centres in the
company’s passionate people are dedicated to helping US, China and India.

Bechtel – Stand 2729


B
echtel is one of the world’s most respected global Since 1898, Bechtel has completed more than 25 000
engineering, construction and project management projects across 160 countries on all seven continents. The
companies. Together with its customers, the company company operates through four global businesses:
delivers landmark projects that create long-term progress and Infrastructure; Nuclear, Security & Environmental;
economic growth. Oil, Gas & Chemicals; and Mining & Metals.
Bechtel and its culture are built on more than a century of
leadership and a relentless adherence to its values, the core
of which are safety, quality, ethics and integrity. These values
are what Bechtel believes, what Bechtel expects, what Bechtel
delivers, and what Bechtel lives.

Black & Veatch – Stand 1265


V
isit Black & Veatch at LNG 2019 to learn more about the
company’s knowledge and capabilities that span LNG
import and export facilities, FLNG, gas processing and
natural gas liquids (NGL) fractionation, sulfur, gasification, and
ammonia/fertilizers.
Members of Black & Veatch’s global team will be present
at the conference to share insights into the company’s
patented PRICO® SMR processes. With more than 100 offices
Figure 2. Since 2015, Bechtel has delivered 14 large scale around the world, Black & Veatch is ready to discuss your
LNG production trains for customers around the world, operations and how it can use its expertise to solve your
including eight trains in Australia. These facilities now
business goals.
supply approximately 61 million tpy of LNG to global energy
markets, or enough energy to power more than 85 million Black & Veatch provides services from consulting, design,
homes. full engineering, procurement and construction (EPC), and
startup.

100 March 2019


#Integrity19

INTEGRITY 2019
INTERNATIONAL ONLINE PIPELINE CONFERENCE
18 - 19 June 2019
With participation from:

worldpipelines.com/integrity

Subscribe to LNG Industry

A unique source of
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Subscribe online at:
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Braemar – Stand 1459
B
raemar is a leading international provider of knowledge logistics. With over 60+ offices and 750+ staff worldwide,
and skill-based services to the energy, shipping, marine, these divisions work together to offer a unique combination
offshore and insurance industries. The group comprises of skills for clients, at anytime, anywhere in the world.
four operating divisions: shipbroking, financial, technical and As an LNG technical advisor and energy consultant,
Braemar brings broad-based LNG expertise that covers the
full spectrum of the LNG supply chain from liquefaction
plants through LNG shipping to LNG baseload terminals, and
on to the end-users. Over the past 30 years, Braemar has
developed a wide range of skillsets, having provided owner’s
with engineering and project management / project oversight
/ construction supervision across all types of LNG projects,
including involvement in over 100 delivered LNG carrier new
buildings.
Braemar’s mission is to provide leadership, guidance and
solutions in a timely and efficient manner to meet its client’s
Figure 3. The home of integrated marine and energy objectives. The company is committed to providing effective
services (Braemar). solutions to its clients, while maintaining high ethical
standards.

Chart Industries – Stand 1465


C
hart continues to pioneer the development of LNG as a
clean burning, economical fuel alternative to diesel for
energy, transportation and industry. From the earliest
study phase through to commissioning and after-sales service
packages, Chart is committed to its clients throughout the
entire project lifecycle.
With the industry poised at the edge of the next energy
wave, Chart is providing solutions right across the value chain.
The company’s modular mid scale liquefaction model has
shifted the way developers are looking at export facilities and
the import terminal at Klaipeda demonstrates the economic
viability of small scale LNG.
Chart provides natural gas at the point of use for power
generation through the LNG virtual pipeline and has
developed complete fuelling solutions for road, maritime and
even rail.
Figure 4. Chart supplied the complete cryogenic section for
the import terminal at Klaipeda that has created an LNG hub Subject experts and a multi-lingual team from across
for the Baltic region through small scale LNG. Chart’s business will be available and ready to consult with
clients at LNG 2019.

Cheniere Energy Inc. – Stand 1129


C
heniere Energy, Inc. is the leading producer and exporter liquefaction facilities on the US Gulf Coast, with expected
of LNG in the US, reliably providing a clean, secure aggregate nominal production capacity of 36 million tpy of
and affordable solution to the growing global need LNG operating or under construction. The company is also
for natural gas. As a full-service LNG provider, Cheniere’s pursuing liquefaction expansion opportunities and other
capabilities include gas procurement and transportation, projects along the LNG value chain.
liquefaction, vessel chartering and LNG delivery. Cheniere is headquartered in Houston, Texas, and has
Cheniere has one of the largest liquefaction platforms in additional offices in London, Singapore, Beijing, Tokyo and
the world, consisting of the Sabine Pass and Corpus Christi Washington, D.C.

ClassNK – Stand 4223


W
ith approximately 250 million gross tonnes, or some In 2018, ClassNK released guidelines specifying technical
20%, of the world’s merchant fleet, including gas requirements regarding structural strength assessments of
carriers, on register, ClassNK is one of the world’s liquefied gas carriers with independent prismatic cargo tanks
largest classification societies in terms of gross tonnage under using direct calculation. The guidelines specify the design
class. ClassNK is a global organisation, supporting clients 24/7 loads dominant for each structure, strength analysis methods
through over 130 exclusive surveyor offices across the world. and corrosion deductions, along with design scenarios with

102 March 2019


Light weight modular design single
sided or double sided AGW built to fit in
the narrow spaces of LNG tank projects.

[email protected] 541-480-2727 tankwelding.com


assessments required by IMO IGC code. provides the support needed to realise the practical
With various recent environmental regulations that implementation of projects involving all types of LNG
restrict permitted levels of NOx, SOx and CO2 emissions from carriers in operation.
vessels, LNG as an environmentally friendly alternative to ClassNK is also a leader in maritime research and
fossil fuels is rapidly becoming a viable energy source for development, working closely with the industry to develop
ships. With the latest technical knowledge and guidelines, cutting-edge technological solutions for a safer and greener
and vast expertise in classification services, ClassNK future in the global maritime community.

ConocoPhillips – Stand 1141


C
onocoPhillips is the world’s largest independent this process are expected to have a total installed production
engineering and procurement company based on capacity in excess of 100 million tpy, making ConocoPhillips the
production and proved reserves. With more than five second largest LNG liquefaction technology provider. In addition
decades as an of LNG industry leader, ConocoPhillips has to technology and licensing, ConocoPhillips’ comprehensive LNG
licensed its innovative Optimized Cascade® process for use in offering includes developing LNG facilities, shipping remote
26 LNG trains around the world. By 2021, LNG plants utilising natural gas to market, and promoting LNG sales to new markets.

Elliott Group / Ebara Cryodynamics – Stand 3541


E
bara CryodynamicsTM, a business of Elliott Group, is the provides onshore and offshore solutions for liquefaction,
recognised global leader for submerged electric pumps and storage and regasification for liquefied gas carriers, FSRU, FLNG,
expanders in liquefied gas applications. Ebara Cryodynamics FSU, LNG bunkering and LNG fuelling applications.
With thousands of installations worldwide,
Ebara Cryodynamics manufactures both standard and custom
cryogenic pumps and expanders, delivering continuous
advances in equipment design and technology to customers
around the world. Cryodynamics developed the first
submerged cryogenic expander in 1997, the first two-phase
expander in 2001, the first two-phase tandem installation in
2008, and the first floating application in 2011.
Elliott Group is a premier supplier of custom-engineered
refrigeration compressors for baseload LNG plants, as well as
a full line of rotating equipment for refining and
petrochemical applications. Together, Elliott Group and
Ebara Cryodynamics share synergies in markets, product lines
and customer base to provide an efficient, simplified customer
experience.
In addition to its full line of submerged cryogenic pumps
Figure 5. Ebara CryodynamicsTM pumps and expanders
are custom-engineered for a wide variety of liquefied gas and expanders, Ebara Cryodynamics offers complete global
applications. service packages, including parts, service engineering, training
and customised research.

ExxonMobil – Stand 1016


E
xxonMobil will be a principal sponsor at LNG 2019 important competitive advantage and positions ExxonMobil
in Shanghai in April. As the largest publicly traded strongly to help meet the world’s growing natural gas and
international oil and gas company, the company uses power demands.
technology and innovation to help meet the world’s growing At ExxonMobil’s exhibition booth you will be able to
energy needs. experience the company’s 360º immersive LNG story, as well
ExxonMobil is active across the natural gas value chain in as learn more about its popular ExxonMobil LNG Power Play
most major markets. The company’s global presence, event celebrating the role of women in the industry.
combined with its ability to leverage expertise across its ExxonMobil’s team of experts will also be on hand to discuss
upstream, downstream and chemical businesses enables it to any potential business opportunities across the LNG value
create innovative integrated solutions. This provides an chain.

Fluor – Stand 3401


F
luor is one of the world’s largest engineering, procurement, and delivers execution excellence to clients.
fabrication, construction and maintenance companies. Fluor is pioneering a number of innovative design and
With its LNG and gas processing technology expertise, execution strategies that improve capital efficiency for LNG
global sourcing capabilities, fabrication yards and craft clients. Fluor’s solutions include 3rd Gen Modular ExecutionSM:
workforce, Fluor’s integrated solutions approach reduces costs an advanced modular design approach that can reduce

104 March 2019


Customer:
World-scale ethylene producer, China.

Challenge:
Maximize feed stock delivery and ethylene
transport to boost downstream output.

Result:
Ebara Cryodynamics is selected as the world’s
most trusted cryogenic pump supplier.

They turned to Ebara Cryodynamics


for unparalleled expertise in cryogenic pumps
for liquefied gas applications.
With thousands of installations worldwide, Ebara Cryodynamics is the recognized global leader
for submerged electric pumps and expanders in liquefied gas applications. For over four decades,
Ebara Cryodynamics has delivered continuous advances in equipment design and technology to
TM

liquefied gas customers around the world. Who will you turn to?

www.ebaracryo.com
Fluor’s LNG experience spans the entire project lifecycle,
from feasibility studies and technology evaluations to
commissioning. The company’s expertise includes:
z Liquefaction facilities.
z Regasification terminals.
z FSRUs.
z Marine terminals and facilities.
z Utilities and offsites.
z LNG boil-off and vapour recovery systems.
Figure 6. Fluor’s LNG expertise includes liquefaction and
z Natural gas liquids recovery and fractionation.
floating and land-based regasification units.
z Pipe-in-pipe solutions for remote LNG carrier access.
footprint requirements. Fluor’s Zero Base Execution process
SM
From the LNG Canada liquefaction facility in
aligns the project’s design and execution approach to the British Columbia, Canada, to regasification terminals in
project’s business goals, which reduces costs and improves Thailand and Singapore, Fluor’s LNG projects are transforming
delivery certainty. the world.

Go LNG Cluster – Stand 4247


T
he Go LNG Cluster is a network established to connect and other countries.
promote companies and organisations offering and using Usage of LNG in the maritime sector, LNG for power supply,
LNG services, knowledge and technologies. Together with for cooling energy, as fuel for heavy road and transportation –
its members, Cluster works to strengthen the development of Go LNG Cluster is looking into all LNG industries and applications.
LNG business opportunities in the Baltic Sea Region and on Accelerating the development of an LNG is accompanied by
other international markets. significant challenges. Transforming them into new
The network was established within the framework of the opportunities is possible only with the wide network of experts,
Go LNG project, which has been co-financed by INTERREG ambition and resources.
Baltic Sea Region Programme. Cluster is successfully directing partnerships built within
Cluster promotes and actively explores innovations to open the framework of a platform to generate innovative solutions
up new business opportunities and to add new end-users to the that expand the application and distribution of LNG as energy
existing LNG infrastructure in the Baltic Sea Region and in source and fuel.

GTT – Stand 4020


G
aztransport & Technigaz (GTT) is an engineering company them with established and efficient technologies for
that designs cryogenic membrane containment systems containment of liquefied gas at low temperatures.
dedicated to the transport and storage of liquefied The company is currently expanding its offer to new and
gases, in particular LNG. For over 50 years, GTT has developed promising markets, providing customised technological and
technological expertise in the liquefied gas industry, building engineering solutions for small and mid scale vessels, as
trusting relationships and lasting partnerships with different well as new applications for the LNG market, such as the
stakeholders (shipyards, shipowners, gas companies, terminal use of LNG as a propulsion fuel and the associated logistic
operators and classification societies). The company provides chain.
GTT develops innovative solutions to ease bunkering
operations, as well as to optimise the LNG volume and the
space occupied, resulting in a minimum loss of cargo capacity.
The company offers highly competitive storage and handling
solutions that cover the whole logistic chain, from the
liquefaction and export terminal in a producer country to the
tank of an LNG-fuelled ship.

Höegh LNG – Stand 2467


A
s the volume of LNG produced and consumed continues
to expand at a rapid pace, floating storage and
regasification units (FSRUs) unlock access to the global
LNG market for new importing markets around the world at
a fraction of the cost and time required for the construction
Figure 7. The FSRU Höegh Esperanza at the Tianjin LNG of an onshore LNG import terminal. Höegh LNG is an industry
terminal in China (Höegh LNG). leader with regards to the ownership and operation of
modern FSRUs.

106 March 2019


Höegh LNG’s strategy is to develop, manage and operate export pipelines.
the group’s assets to the highest technical, commercial and Höegh LNG is a Bermuda incorporated company,
safety standards, thereby maximising benefits to customers, headquartered in Norway with an established presence in
shareholders, and all stakeholders. The company has Singapore, the UK, the US, South Korea, Indonesia, Lithuania,
successfully developed and executed complex, fully integrated Egypt, Colombia and Turkey. Höegh LNG Holdings Ltd is listed
projects for top-tier global energy companies, offering a on Oslo stock exchange with the ticker ‘HLNG’, and has
comprehensive service offering that includes not only the established a Master Limited Partnership,
provision and operation of an FSRU, but also all aspects of HöeghbLNGbPartnersbLP, that is listed on the New York Stock
financing and the design and construction of support Exchange with the ticker ‘HMLP’. The company employs
infrastructure including mooring systems, offloading arms and approximately 125 office staff and 500 seafarers.

Linde AG, Linde Engineering Division – Stand 1565


L
inde Engineering looks forward to connecting with Here, customers can explore how membrane technology is
customers and industry experts at LNG 2019. At the bringing new levels of stability, recovery efficiency and
2019 event, the company will be focusing in particular cost-effectiveness to natural gas sweetening. The spotlight
on the hot topic of profitability. It will be showing will also be on adsorptive pretreatment units for membranes
customers how its cutting-edge technologies and services and pipeline dew-pointing. Additional operational,
can improve their bottom line – often through relatively thermal efficiency, safety and footprint advantages can be
minor adjustments. unlocked with Linde’s submerged combustion vaporisers
Engineering highlights at this year’s event include new (SCVs) for the regasification of LNG.
gravity based structure (GBS) concepts that offer compelling Last but not least, Linde will be showing customers how
advantages over conventional LNG developments. Here, Linde its LINDE PLANTSERV™ portfolio can save them time and
will be showing how its expertise in world scale LNG plants is money.
actively driving the mid scale trend by maximising efficiencies Digital plant twins, simulators and virtual reality training
and synergies. are taking the engineering business into the digital age – and
Other trending topics include natural gas pretreatment promising efficiency gains for today’s customers.

McDermott – Stand 3723


M
cDermott is one of the most experienced engineering
and construction firms serving the LNG market. The
company built the first LNG regasification import
terminal in the US and, over the years, it has developed
a number of processes and technologies that benefit its
customers.
McDermott offers a comprehensive range of technology,
engineering, procurement, fabrication and construction
services to the industry, with a focus on natural gas Others simply sell
liquefaction plants, regasification terminals, peak shaving you a product –
facilities and storage tanks. Within these focus areas, the we offer
company provides a full range of services from concept to a solution.
commissioning.
McDermott is currently building two LNG liquefaction
plants on the US Gulf Coast – the Cameron LNG facility in
Hackberry, Louisiana, and the Freeport LNG facility in
Freeport, Texas.

NextDecade Corp. –
Stand 1054
N
extDecade is an LNG development company focused
on LNG export projects and associated pipelines in
Texas. NextDecade intends to develop a portfolio of
LNG projects, including the 27 million tpy Rio Grande LNG
alves
export facility in Brownsville, Texas and the 4.5 billion ft³/d LNG Best V 0
5
since r1s
RiobBravobPipeline that would transport natural gas from the
Agua Dulce area to Rio Grande LNG.
SERVICE e a
Y
NextDecade’s common stock is listed on the
Nasdaq Stock Market under the symbol ‘NEXT’. The company OHL Gutermuth Industrial Valves GmbH
is headquartered in Houston, Texas.
Helmershäuser Straße 9+12 · 63674 Altenstadt / Germany
Phone +49.60 47. 80 06-0 · Fax +49.60 47.80 06-29
www.ohl-gutermuth.de · [email protected]
March 2019 107
Nikkiso – Stand 3901
N
ow unified as Nikkiso’s LNG Group, Cryogenic Industries industry.
(Cosmodyne, ACD, Cryoquip) and Nikkiso Cryo have ACD, LLC engineers and manufactures a diverse line of
consolidated their resources and global assets to supply cryogenic pumps and turboexpanders for LNG applications.
innovative equipment and solutions in liquid gases and Cosmodyne, LLC is a leading provider of customised small
beyond. The group is proud to be a participant in LNG 2019 to mid scale natural gas (LNG) facilities for alternative fuels,
in Shanghai, where it will be showcasing its product line that peak shaving and marine applications.
includes LNG pumps, heat exchangers and plants. Cryoquip, LLC’s expertise is in engineering, manufacturing
Nikkiso Cryo, Inc. (NCI) is a leading supplier of cryogenic and design solutions of a diversified line of cryogenic
submerged electric motor pumps used in the liquefied gas vaporising systems and industrial gas equipment.

Orbital Gas Systems – Stand 1476


O
rbital Gas Systems, a CUI Global Company, is a leader process control, telemetry, gas sampling and BioMethane.
in providing innovative gas solutions; with more than Orbital is a provider of custom-built engineering solutions
30 years of experience in design, installation and the and has the capabilities at its state-of-the-art offices to
commissioning of industrial gas sampling, measurement and provide systems that meet the needs of the industry’s most
delivery systems. demanding customers.
Orbital currently has offices in Houston, Texas, and the UK, Orbital’s innovative technologies, including GasPT® and
as well as representation in more than 40 countries. This global VE Technology®, are changing the landscape of natural gas
reach within the energy, power and processing markets allows metering and process control by allowing operators to know
Orbital to manufacture and deliver a broad range of the accurate calorific value and other characteristics of their
technologies, including environmental monitoring, gas metering, gas instantly.

Owens Corning FOAMGLAS® INSULATION – Stand 3635


F
OAMGLAS® insulation is a leading global brand in protect the environment, and have improved the lives of
innovative and technically advanced cellular glass millions of people in virtually every country in the world.
insulation. Its sustainable products conserve energy, Inorganic FOAMGLAS insulation, which is composed of
millions of completely sealed glass cells, has stood the test of
time in applications for decades.
FOAMGLAS insulation is resistant to water in both liquid
and vapour form, it is noncombustible and will not absorb
combustible liquids, it is dimensionally stable, and has
superior compressive strength. These unique properties of
FOAMGLAS insulation make it ideal for cryogenic systems
such as LNG. FOAMGLAS insulation is suitable for: low
temperature piping and equipment; liquid nitrogen, helium
and oxygen pipes; LNG piping and equipment; ethylene
piping and equipment; hydrocarbon fire resistance at low
temperature.
FOAMGLAS insulation can also be used in applications
ranging from cold (-450°F) to hot (900°F) in many different
process industries. FOAMGLAS Insulation’s all-glass closed-cell
structure provides physical properties ideal for pipes, tanks,
vessels and spheres. Due to its unique combination of physical
Figure 8. FOAMGLAS® insulation protects LNG loading characteristics, which provide safety, durability, sustainability
lines (Owens Corning). and long-term economic benefits, FOAMGLAS insulation is the
preferred insulating material for industrial projects.

PROTEGO® – Stand 2174


S
ince 1954, PROTEGO® has built and provided safety and pharmaceutical industries, and the bio-energy sector.
devices and tank equipment, now with the help of
more than 500 employees worldwide. The company is Pressure/vacuum relief valves for cryogenic
a technology leader within its field of expertise. PROTEGO storage tanks:
provides global services for its customers which include Decades of experience in producing pilot-operated
research and development, application-specific engineering, pressure/vacuum relief valves, state-of-the-art knowledge and
and overall protection system design. Customers know they expertise in computer-optimised design and extensive test
can trust in its products and high quality and development facilities, form the basis of the development of PROTEGO vent
standards for process engineering, the petroleum, chemical valves. The storage of cryogenic liquefied gases makes special

108 March 2019


demands on the venting devices required for tank equipment. pressures of the tank are not exceeded in practice. Thanks
These valves are designed in accordance with the applicable to their characteristic functioning principle, pilot-operated
standards and with regard to the operating points of the valves achieve highest tightness up to the set pressure.
various products in the process. Using pilot-operated valves, it Spring-loaded and magnet-loaded pilots are the main valve’s
is ensured that maximum permissible operating reliable switching components.

TechnipFMC – Stand 1453


T
echnipFMC is a global leader in LNG, providing services construction of modularised LNG plants, including Yamal LNG
from concept to project delivery and beyond through its and the world’s first three FLNG units.
three global business segments: subsea, onshore/offshore With its proprietary technologies and production systems,
and surface technologies. process technology, advanced structural design for
The company provides a wide range of gas monetisation modularisation, global coverage and project management skills,
solutions, supporting capital projects, from field facilities, TechnipFMC helps transform its clients’ project economics. The
through gas processing and NGL recovery, GTL, hydrogen, company provides greater assurance in LNG project outcomes
ammonia and LNG. with engineering teams skilled in all project phases.
TechnipFMC’s LNG projects, that in total represent 20% of Each of TechnipFMC’s more than 37 000 employees are
world capacity, range from small inland liquefaction plants to driven by the same steady commitment to the company’s
large export terminals in some of the harshest locations such clients and culture of purposeful innovation, challenging
as the Arctic, the Arabian Peninsula and offshore. The company industry conventions and rethinking how the best results can
is an industry leader in the design, engineering and be achieved.

TGE Marine Gas Engineering – Stand 4427


T
GE Marine Gas Engineering GmbH is the leading centre of excellence with core competencies in design and
engineering, procurement and construction supervision engineering, and a branch office in Shanghai, China, providing
(EPCS) solution provider to the growing cryogenic gas marketing, site supervision and project management activities,
markets, specialising in cargo handling systems and tanks for TGE Marine offers optimum service to its customers around
LPG, LEG, ethane and LNG carriers. TGE Marine is a pioneer the world.
in the dynamic field of LNG fuel gas systems, LNG
bunkering and LNG-to-power solutions.
The company has contracted and supplied gas
handling and storage systems to more than 220 gas
tankers and merchant vessels with LNG propulsion built
at more than 20 shipyards across Asia (China,
South Korea and Japan), Europe and South America.
With its head office in Bonn, Germany, a technical

Tokyo Boeki Machinery –


Stand 2701
T
okyo Boeki Machinery/Niigata know what quality and
services excellence mean.
In 2017, no less than 84.5 million t of LNG
flowed through the company’s marine loading arms in
operations at the 37 LNG receiving terminals in Japan
without a single leak, incident reported or cargo missed.
This is not by chance; it is owing to the highest quality
standards and manufacturing processes used at
Tokyo Boeki’s Nagaoka manufacturing plant, to the
professionalism of the company’s engineering and
production teams, and to its capacity of innovation to
address customers’ needs.
Some of Tokyo Boeki’s LNG marine loading arms
have been in service for more than 50 years. They have
undertaken thousands of unloading operations, and
survived the typhoons and earthquakes that are frequent
in Japan.
The company’s current product range offering can
accommodate small loading and reload facilities, LNG
bunkering, regasification terminals, as well as major

March 2019 109


import and export terminals. Tokyo Boeki’s equipment can and ensures the maintenance of all components of its loading
perform in extreme climatic conditions with the same arms; including the emergency release system, as well as the
reliability. As a sole source supplier, the company guarantees hydraulic quick connect and disconnect couplers.

Vanzetti Engineering – Stand 4616


E
stablished in 1984, Vanzetti Engineering is the only of cryogenic pumps and components for the following
Italian company active in the design and construction of applications:
cryogenic equipment for LNG and air gases. z Fuel systems for low/high pressure marine engines,
Thanks to constant growth and practical experience, to bunkering, stripping and spray.
the continued updating of skills and resources, and to the
z LNG/L-CNG refuelling stations.
evolution of production systems, Vanzetti Engineering has
reached important milestones on its road towards continuous z LNG loading/unloading from road trailers and stationary
improvement and global success. storage tanks.
Opened in 2015, its new 12 000 m² plant houses its z Industrial satellites, back-up and peak-shaving plants,
cryogenic pump and skid production processing departments, pipeline feeding, power generation.
and allows for a considerable increase in the company’s
production capacity. Today, Vanzetti Engineering is a recognised z High pressure inert gases and oxygen cylinders filling for
cryogenic pumps and systems supplier for many major LNG and different industrial purposes.
air gases based projects, and is among the key contributors to Modularity, flexibility and simple installation are the main
the development and success of these industries. successful features of Vanzetti Engineering’s cryogenic
Currently, Vanzetti Engineering can offer a complete range components.

Velan – Stand 4044


V
elan is one of the world’s leading manufacturers of valves quality materials, advanced manufacturing technology and
for fossil and nuclear power, chemical, petrochemical, oil automation in all stages of manufacturing to ensure the
and gas and cryogenic industries. Founded in 1949 in highest possible quality.
Montreal, Canada, Velan earned a reputation for excellence as Velan cryogenic valves are in operation for
a major supplier of gate, globe, check, ball and butterfly valves superconductivity applications, particle accelerators, nuclear
for most critical applications. fusion, rocket launching pads, helium liquefiers and LNG
The Velan philosophy is to bring to the market new and applications.
innovative valve designs with a particular emphasis on Velan offers a full range of maintenance and on-site
quality, safety, ease of operation, simple in-line maintenance services. The company’s team of 35 highly qualified engineers
and long service life. ensures worldwide on-site operations for commissioning,
Each of the company’s 17 specialised manufacturing expertise of valves, technical support and training of
plants in Europe, Canada, the US, China and India use high end-users.

Woodside – Stand 1629


W
oodside is the largest Australian gas producer with Australia and the Asia-Pacific region, the Atlantic margins and
a global portfolio, recognised for its world class sub-Saharan Africa. Currently, there is a focus on drilling to
capabilities as an explorer, developer, producer and grow the company’s resource volumes.
supplier of energy. Woodside holds significant equity interests in high-quality
The company’s global exploration portfolio is balanced development opportunities in Australia (Wheatstone,
across established, emerging and frontier provinces covering Scarborough and Browse), Senegal, Myanmar and
North America (Kitimat), and are pursuing new concepts and
technology to enable cost-effective commercialisation of
these resources.
The company’s producing assets include the landmark
North West Shelf Project, Pluto LNG and non-operated
Wheatstone LNG. Its operated assets are renowned for their
safety, reliability and efficiency. As Australia’s leading LNG
operator, Woodside produces 6% of global LNG supply, and
operates a fleet of floating production, storage and offloading
(FPSO) facilities.
Woodside continues to expand its capabilities in
marketing, trading and shipping and has enduring
relationships that span more than 25 years with foundation
customers throughout the Asia-Pacific region. The company
Figure 9. Woodside’s world class Pluto LNG facility in
Karratha, Western Australia. also continues to promote the use of LNG as a low-emission
and economically viable alternative fuel.

110 March 2019


ADINDEX
Advertiser Page Advertiser Page

ACME Cryogenics 109 Hallwood Modular 63

Air Flow North America 49 International Registries 64

Air Liquide 57 Kanon Loading Equipment 85

Air Products 27 Matrix Service Company 17

Alaska LNG 09 MIB Italiana 59

Black & Veatch IFC Neuman & Esser 41

Braemar 31 NIKKISO 51

CEROBEAR 98 Nor-Shipping 38

Chart 11 OHL Gutermuth Industrial Valves 107

Cheniere OFC, 77 Owens Corning FOAMGLAS INSULATION 21

ConocoPhillips 07 Palladian Publications 91, 101

Corban Energy Group 13 SCHOTT 71

Cosmodyne 67 Sempra LNG & Midstream 55

Eilbeck Cranes 23 Simms Machinery International 18

Elliott Group 105 Smit Lamnalco OBC

Emerson 33 Tank Welding 103

Fluor 45 TechnipFMC 02

FTI Group 93 TGE Marine Gas Engineering IBC

Gastech 81 Vanzetti Engineering 75

Global Petroleum Show 86 Wartsila 37

Golden Pass LNG 05

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


An audit certificate is available on request from our sales department.
...ON

FACTS China
15FACTS
15
China National Offshore
Oil Corp. (CNOOC) was the
CHINA is the most first Chinese national oil
populated country company to venture into
in the world LNG in the early 2000s

China has won a total of 608 Olympic


medals: 237 gold, 195 silver, 176 bronze

If all of China’s railway


Yao Ming remains the tallest
player to be inducted into the lines were combined,
Naismith Memorial Basketball the track would loop
Hall of Fame at 7’6” (2.29 m) tall around the world twice

Seven LNG buyers based in Asia collectively


China received its first
account for more than half of global demand;
shipment of LNG from the
US on 22 August 2016 three of these seven are based in China
(CNOOC, PetroChina and Sinopec)

Australia More people speak The 19th International


remains the Mandarin as their first Conference & Exhibition
largest supplier language than any other on LNG (LNG 2019) is being
of LNG to China in the world held in Shanghai, China,
this year (01 – 05 April 2019)
Found in northern China, long-eared
jerboas have ears that are one-third Ketchup’s first incarnation
longer than their heads was in China as a pickled
fish sauce called ke-tsiap
IN 2018, CHINA
BUILT MORE
China was drilling for In 2018, China
SKYSCRAPERS
THAN ANY natural gas as early as temporarily overtook
OTHER COUNTRY the 4th Century Japan as the world’s
top importer of LNG
112 March 2019
Dedicated
to the
extreme

Smit Lamnalco provides first class, reliable, safe and efficient marine services for any LNG operational
environment. No matter how remote or complex the operation, we are dedicated to exceeding expectations.

Discover the possibilities at smitlamnalco.com

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