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VISIT OUR STAND C430, HALL 4

The Official 2015 Conference Newspaper

Published by , and
DAY FOUR
Friday, 30 October 2015

Gastech 2017 heads to the INSIDE THIS ISSUE

Land of the Rising Sun


3 Conference Programme
5 CoTEs Programme
Japanese and international industry leaders will examine the critical role 6 China’s gas-fired energy
of gas and LNG for Japan’s future energy security at Gastech Japan 2017 in Tokyo. revolution is on the move
The Gastech Conference & Exhibi-
tion, Japan will be held 4–7 April 2017
in Chiba/Tokyo. This is the largest and
most important business and technology
event for the gas and LNG sector, creating Siemens technology is helping
a global platform to address and discuss move gas through China’s vital
the latest challenges faced in Asia and on and extensive WEGP system
a wider international scale.
Gastech moves to Japan for the first
10 Observe unique design
time and is being hosted by The Japan requirements for LNG
Gastech Consortium, which is made up of pumps and valves
10 of Japan’s leading energy companies, The Makuhari Messe International Convention Complex, the site of Gastech 2017, Fluor discusses the exclusive
including: JERA; Mitsubishi Corporation; is located in the Chiba Prefecture along the shores of Tokyo Bay. design specifications of pumps
Mitsui & Co.; Tokyo Gas; INPEX; ITO- and valves for LNG service
CHU Corporation; JAPEX; JX Group—
ENEOS; Marubeni Corporation; and Sum- 13 LNG projects pull
itomo Corporation. big financing with
Bringing the international energy eco- long-term contracts
system to the world’s number one con- Special Focus discussion on
sumer of LNG and leading global tech- developments and investments
nology hub is an exciting and unique for emerging gas markets
opportunity for the gas market. Japan’s
future energy security is a matter of 16 Utilizing open platform
national priority, and the challenging architecture, expertise
decisions regarding the fuels the coun- for improved
try chooses are essential. The need to re- compressor control
engage and renegotiate major long-term The capabilities of Energy
LNG and gas contracts over the next few Control Technologies
years will help Japanese customers drive
better value and flexibility in the future. 17 Jereh Group,
While Japan has its own energy chal- Neon signs light up downtown Tokyo. Japan is on the cutting edge of technology Primus Green Energy
lenges and future to decide, the Gastech and innovation.
announce global
Conference & Exhibition will provide the
international gas market with the perfect tions and asset teams. The Conference, Gas The 10 Japan Gastech Consortium Com- market collaboration
backdrop to discuss wider commercial and Leaders’ Summit, VIP Programme, LNG panies are being joined by renowned IOCs;
technical energy issues, such as energy Procurement Forum, Women In Energy, NOCs; governments; legal, banking and
security, risk management, technological Youth Programmes and the newly expanded financial institutions; marketing and trad-
advancements, joint venture collaboration, Technical Programme—combined with the ing organisations; EPCs; shipping and
the latest technologies, investments, succes- Exhibition and multiple business network- technology companies; trade bodies and
sion planning, contracting, project financ- ing events—present a vital opportunity to associations; and many more.
ing, management and many more business gather with industry leaders and colleagues The organisers of Gastech 2017 can’t wait
critical issues that will help advance and set to learn, exchange ideas and collaborate. to welcome you to this must-attend event. ■
the path for greater gas advocacy. Following Gastech’s official launch Companies celebrated partnership
The event’s multi-faceted programme in Tokyo, the demand to participate from To discuss your Gastech 2017 participation, at a crowded Tuesday press event
please visit us today during the remainder of
will cater to the full energy eco-system’s leading energy organisations has been
needs, from C-level and government, mar- unprecedented. So far, over 60% of the
Gastech 2015 at SingEx Hall 4—Stand C430, 19 Scenes from Gastech
email Simon Ford at simonford@dmgevents.
keting and trading, to engineers, opera- available space has already been booked. com, or visit www.gastechevent.com.
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GasProcessingNews.com | SEPTEMBER/OCTOBER 2015

LNG TECHNOLOGY
Processing Industry! PLANT DESIGN
Pair NGL recovery with LNG
for improved processing
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equipment, operations and maintenance, and environment
and regulations pertaining to Natural Gas Liquids (NGLs),
Liquefied Natural Gas (LNG), Gas-to-Liquids (GTLs) and
Liquefied Petroleum Gas (LPG). GasProcessingNews.com
provides breaking news, market insight, in-depth articles
covering the latest developments and advancements in the Special Supplement to

gas processing industry, project data and more.


FLNG success begins with design
ADRIENNE BLUME, Gas Processing
At Thursday afternoon’s special focus bons under pressure, loss of containment, safety gaps act as mitigation gaps to reduce Topsides and onshore planning.
stream on FLNG innovation, containment boiler explosions and weather conditions, the risk of incident escalation. Design of the topsides begins with technol-
and storage, Ian Jewitt, FLNG HSSE Team among many others. “To understand the Another area of concern is cryogenic ogy selection and decisions on production
Lead for Shell Global Solutions, discussed risks associated with all aspects of FLNG spill risk. The risk of cryogenic spills is capacity, train sizes and LNG offloading
floating LNG (FLNG) engineering in a projects, it has been necessary to perform larger on an LNG carrier because of the strategy. Project planners must choose
safety context. a full range of safety studies,” Jewitt said. additional process equipment needed on a between a single large production train and
Jewitt explained how Shell has carried “The layout of the entire facility was floating LNG facility. Shell’s FLNG design multiple small production trains. A large
out exhaustive risk assessment studies for its based on risk management,” Jewitt said. minimizes the cryogenic inventory that single train provides economies of scale
Prelude FLNG project. These assessments Along these lines, heavy equipment is sep- could potentially be released, reducing the and a reduced footprint, but no operational
included hazard identification exercises; arated from personnel living quarters by potential contact time of cold liquid spills flexibility and complex startup and turn-
quantitative risk assessments; fire, explo- as much distance as possible to minimize within critical structures. down issues.
sion and cold spill risk assessments; and injuries or loss of life from potential fires Conversely, the loss of economies of
ship collision studies, among many others. and explosions. Viability of nearshore FLNG. Fol- scale found with small multiple trains can
lowing Jewitt’s talk, Javid Talib, Vice be overcome with technology. Small mul-
Hazard identification. Due to the Safety gap design and spill risks. President and FLNG Program Manager tiple trains have an increased footprint,
unique requirements of FLNG vessels, Prelude’s safety design employs a safety for Black & Veatch, examined the factors although the units can be modularized. A
a number of potential hazards must be gap philosophy, wherein large safety gaps that make nearshore mid-scale FLNG a multiple-train configuration also yields
addressed. These hazards include hydrocar- are implemented between modules. These viable option. operational flexibility, easier startup and
As an alternative to building a fixed- shutdown, higher availability, dedicated
asset, onshore plant, nearshore FLNG has trains for offtake, and production continu-

Conference Programme a shorter construction schedule and can


move to commercial operation much faster
than a traditional FLNG project. “There’s
ation during shutdowns.
The VP also noted that the CAPEX for
nearshore mid-size FLNG projects is man-
a need to start conceptual studies right up ageable, relatively speaking. “The CAPEX
COMMERCIAL STREAM front,” Talib said. “It’s never too early to is bite-sized and bankable compared to
start planning.” other, larger FLNGs,” he concluded. ■
MORNING
LNG Projects: Non-Technical Risks, Progress and Delivery
9:00–9:10 Chairperson’s Welcome
■  Chris Clucas, Group Fleet Director,
Bernhard Schulte Shipmanagement Ltd
■  Paul Sullivan, Senior Vice President—
Global LNG and FLNG, WorleyParsons Group
9:10–10:50 PART 1: Global Project Update
9:10–9:35 Managing a Complex, Integrated LNG Project in a Developing
Country: The Papua New Guinea (PNG) LNG Project
■  Andrew Barry, Managing Director, ExxonMobil PNG
IAN JEWITT, FLNG HSSE Team Lead, JAVID TALIB, Vice President and FLNG
9:35–10:00 Singapore’s World Class LNG Terminal to Set New Industry Shell Global Solutions Program Manager, Black & Veatch
Standards and Trends for the Future
■  Dilip Patel, Engineering Manager,
Singapore LNG Corporation Pte Ltd
DAY 3 CORRECTION
10:00–10:25 Design Innovations and Successful Execution of the
The presidency of the International Gas Union passed from Jérôme Ferrier
Queensland Curtis LNG Project
to David C. Carroll in May of this year, following the 26th World Gas Conference
■  Alasdair Cathcart, General Manager of LNG and
Senior Vice President, Bechtel Oil, Gas & Chemicals in Paris (Gastech Show Daily, Thursday, 29 October 2015, page 7).

10:25–10:50 Opportunities and Challenges of Opening up


a New LNG Frontier in Mozambique
■  Ferruccio Taverna, Vice President Mozambique LNG Published by Hydrocarbon Processing

Gastech
as four daily editions, 27–30 October
Sales Area Manager of Midstream Gas and Power, Eni
2015. If you wish to advertise in this
10:50–11:10 Networking and Coffee Break newspaper, or to submit a press release,
please contact the editor via email
11:10–12:25 PART 2: Risk, Corporate Social Responsibility and People at [email protected].
11:10–11:35 Social Licence—People Can Stop Projects
■  Mary Lou Lauria, Global Managing Consultant, Environmental
Management and Approvals, WorleyParsons Group Advertisers Vice President, Midstream
and Downstream
ABS�������������������������������������������������������������7
11:35–12:00 Non-Technical Risk Management in Shell’s Bret Ronk
Integrated Gas Business ADNOC����������������������������������������������������� 4
Gastech Contacts
■  Karen Westley, General Manager Non-Technical Risk, Construction Boxscore Database������ 13 Gavin Sutcliffe, Head of Conference
Shell Integrated Gas and Governing Body
dmg::events global energy�������������1, 20
12:00–12:25 The True Cost of a Low-Price LNG Project Charlie Cracknell, Event Director
Gas Processing�����������������������������������������2
■  Heinz Kotzot, LNG Technology Manager, KBR Editor
Gulf Publishing Company Events��������9 Mike Rhodes
12:30–13:00 The Gastech Governing Body Wrap-Up and Summary
HOEGH LNG����������������������������������������������5 Contributing Editors
CONFERENCE AND EXHIBITION OPENING TIMES QATARGAS Operating Company����������1 Kurt Abraham
US Gas Processing Plant Directory����� 11 Adrienne Blume
Conference Exhibition
Tuesday 27 October 2015 14:00–17:50 10:00–18:00 Photographer
Wednesday 28 October 2015 09:00–18:00 10:00–19:00 Kelly Abraham
Thursday 29 October 2015 09:00–18:00 10:00–18:00 Production Manager
Friday 30 October 2015 09:00–13:00 10:00–16:00 Angela Bathe Dietrich
www.HydrocarbonProcessing.com Artist/Illustrator
To see the schedule for Centres of Technical David Weeks
2 Greenway Plaza, Suite 1020
Excellence (CoTEs), please see page 5 Houston, TX 77252-77046 USA Advertising Production Manager
+1-713-529-4301 Cheryl Willis

Gastech Conference Newspaper ■ DAY FOUR Friday, 30 October 2015  3


Visit our Gastech stand B520.

Höegh LNG is a leading owner and operator of floating LNG import


infrastructure (FSRUs), has developed flexible FLNG design solutions and is
an experienced operator of LNG Carriers.

www.hoeghlng.com

CoTEs session preview—Securing oil and


Banner Gastech Show Daily 2015.indd 1 07.09.2015 10:01:30

gas facilities
During one of Friday morning’s CoTEs lance to protect numerous facilities and cameras to facilitate control room interven- Already proven in a major gas port facil-
Information and Communication Tech- major gas pipelines across a geographic tion and incident response, while overcom- ity, the proposed security design provides
nology in Gas seminars (10:30–10:55), area of some 1,300 km2. ing limited focal lengths of cameras, poor a robust, effective and efficient solution to
Peter Flynn, Global Business Develop- visibility in a dusty environment, and cam- ensure the facilities are safeguarded, and
ment Director, Telecoms and Electronics, Background. The field in question com- era tower stability issues. In this vast and that risks are as low as reasonably practi-
SNC-Lavalin/Kentz, will present a case prised 120 stations of various sizes, includ- remote location, any devices would have to cable as prescribed by the client. ■
study, “Enhanced security for oil and gas ing warehouses, gas-oil separation plants be solar-powered and sufficiently robust to
facilities in a volatile world.” and water injection plants. The client speci- survive the extreme desert environment. Attend this and other informative CoTEs
Oil and gas facilities are usually sit- fied that the security protection system was Illuminating 1,300 km2 of video sur- seminars, and visit the SNC-Lavalin team
at #C145 for further discussion.
uated in remote locations in areas that to provide access control for entrances/ veillance was impractical, so thermal
are often geo-politically sensitive, with exits and fence-line CCTV surveillance, as imaging cameras were considered, as well
infrastructure that has little, if any, pro- well as CCTV security surveillance of tens as use of dual technology of both optical
tection. Nonetheless, these facilities of kilometers of sensitive major pipelines. and thermal cameras. However, initial cal-
need to have personnel onsite and often While this paper focuses on those par- culations of camera quantities prescribed
represent several billions of dollars of ticular systems, the FEED also covered by the client meant multiple video feeds
investment, making them high in both elements such as control room modifica- monitored by multiple security operators,
monetary and strategic value, and at risk tions, including civil engineering for room leading to image overload and compro-
of sabotage or attack. extension/modification, acoustic paneling, mising security.
A client requested protection system ceilings, flooring and ergonomics. Con- These constraints lead to a solution
solutions from such threats for a vast gas sideration was also given to HVAC for based on “blind” surveillance by ground
field, and the objective was to design a additional cooling, electrical engineering radars integrated with medium- and long-
system that would: for power and lighting, specialist telecoms range optical/thermal pan, tilt and zoom
• DETECT a potential threat engineering for extension of LAN, access cameras, which automatically lock the
• ASSESS the threat control, CCTV storage and retrieval with nearest camera onto any DETECTed tar-
• ACT on the threat. video wall, and instrumentation engineer- get. The security operator is then able to
The paper, authored by Albert Aspden, ing for fire and gas modifications. ASSESS and ACT on the target. This solu-
Chief Engineer (Telecoms), SNC-Lavalin, tion provides added value by delivering a
PETER FLYNN, Global Business
discusses the technology options consid- Results, observations and con- single view security operator screen when
Development Director, Telecoms
ered and the prescribed solution: Using clusions. Technical challenges included the client’s prescription for multiple views and Electronics, SNC-Lavalin/Kentz
access control systems and CCTV surveil- determining the number and location of was deemed unworkable.

CoTEs—FRIDAY 30 OCTOBER 2015


EXCELLENCE IN GERMAN TECHNOLOGY INFORMATION AND COMMUNICATION TECHNOLOGY PIPELINE INFRASTRUCTURE
(Exhibition Theatre A) (Exhibition Theatre B) (Exhibition Theatre C)
Introduction Moderator Introductory Remarks
10:15–10:30 Michael Witter, Ambassador, Embassy of the Federal
Republic of Germany to Singapore
Ragnar Strauch, Director International Markets Process
Technology, VDMA German Engineering Federation
Session 1 Controlling Valve Pressure in LNG Units and Vessels Enhanced Security for Oil and Gas Facilities Towed Pipeline Production Systems
10:30–10:55 Olaf Schulernberg, Director Construction and in a Volatile World Marin Abelanet, Engineering Director, Asia and
Development, GOETZE Armaturen Peter Flynn, Global Business Development Director, Australia, Subsea 7
Telecoms and Electronics, SNC-Lavalin/Kentz
Session 2 Lessons Learned Solving Pilot Valve Instability Unidirectional Security Gateways for Natural Gas Advanced Magnetic Filtration Makes
11:00–11:25 Issues on LNG Storage Tanks Infrastructure a Clean Fuel Cleaner
Sven Zdun, Sales Manager Southeast Asia, Dimitry Shvartsman, Director of Industrial Security, Roger Simonson, President and CEO,
Braunschweiger Flammenfilter GmbH (PROTEGO) Waterfall Security Solutions Ltd. Black Powder Solutions
Session 3 A Review of Non-invasive Techniques Intelligent Knowledge Based Operations Advisory Evolution of Orifice Metering:
11:30–11:55 for LNG Measurement and Training Systems to Improve LNG Operations Bridging the Technology Gap
Peter Liptrot, Application Engineer, FLEXIM Sankar Selvaraj, HOD—Solutions Research Centre, BSD/ Jonathan Page, Technical Sales Manager—
SGDC, Yokogawa Electric International Pte Ltd UK Facility, Canalta
12:00–12:30 Networking and Coffee Break Safety First Approach and Understanding Pipe-Laying
Operations in Different Environment Conditions
Jaya Sinnathurai, Pipeline Manager Asia Pacific,
Caterpillar Asia Pte Ltd
Session 4 Removing Efficiently Divalent Salts from Meg
12:30–12:55 Reclamation Units—Developing a Tailor-made Solution
Detlef Steidl, Director Application Engineering,
BHS-Sonthofen Inc.
Session 5 Process Optimization and Safety Issues on Biogas Plants
13:00–13:25 Lutz Hörnschemeyer, Export Manager,
Hermann Sewerin GmbH
Closing Remarks Moderator Closing Remarks
13:25–13:30 Ragnar Strauch, Director International Markets Process
Technology, VDMA German Engineering Federation

Gastech Conference Newspaper ■ DAY FOUR Friday, 30 October 2015  5


China’s gas-fired energy revolution is on the move
MIKE RHODES, Gas Processing
China is the largest consumer of energy in by 2030, while the share of other power approaches twice the 2014 installed capacity For the Jingxi Gas Thermal Power
the world: as the economy and GDP grows, sources, such as gas and renewables, would of 1,360 GW. To achieve this, an additional plant, Siemens provided three 307-MW
so too will the demand for energy. To master increase. In 2012, gas accounted for only 200 GW of CCPP capacity will be needed. SGT5-4000F gas turbines (FIG. 2), one
this challenge, energy-hungry China needs 2% of the total power generation in China; The increased share of power generated by set arranged in a 1 × 1 configuration and
uninterrupted access to affordable bulk it is estimated that amount will grow to gas-fired power plants would reduce CO2 one set in a 2 × 1 configuration. The CCPP
energy, and, to maintain energy security, nearly 7% by 2030. The government has emissions by 1,320 MMt in 2030, nearly offers flexible fuel operations with natural
this must be achieved without substantially set an ambitious goal to have more than 20% of the estimated CO2 emissions of the gas (± 15% Wobbe range, H2S up to 4,000
increasing dependence on energy imports. 10% gas share in its Total Primary Energy country’s power sector in 2030. ppm) and liquid fuels. Prominent achieve-
Consumption (TPEC) by the year 2020— The government has instituted a number ments include the:
The progression from coal to gas. that is, almost 400 Bcmy of gas—which of aggressive actions to combat the air pol- •  Extraction of up to 883 MWh of
The country’s high energy self-sufficiency is will be more than 10% of world gas supply. lution that is prevalent in many of its larger district heating capacity, increasing
primarily due to its extensive coal reserves: This would require further research cities, particularly Beijing. The “Beijing the overall efficiency of the natural
however, dependency on coal, mainly pro- to adapt the current international drilling Clean Air Action Plan 2013 to 2017” was gas fuel to more than 80%
duced by small and comparatively inef- techniques to China’s specific and often launched to support this strategy, and Bei- •  Heat for 200,000 households
ficient coal-fired power plants, is the key difficult geological conditions. The China jing Jingxi Gas Thermal Power Co. Ltd. •  Power output of 1264 MW at a CCPP
driver behind high CO2 emissions that have National Petroleum Company (CNPC) is was established to set an example for future efficiency of 58.14%
made China the world’s largest emitter. moving quickly to explore domestic shale combined heat and power (CHP) plants. •  Savings of 4,360,000 tons/yr of coal,
Although it is expanding under a series of gas reserves in partnership with interna- which accounts for around 19% of
Five-Year Plans, gas’s share of the country’s tional gas producers such as Royal Dutch The gas-powered plant of the the total coal consumption in Beijing
energy mix remains small, despite having Shell and Chevron. future. Located in the western part of •  Provision of reliable and secure
the world’s largest technically recoverable Beijing, the Jingxi Gas Thermal Power power supplies to compensate the
shale gas reserves. Recent developments in Turning gas into power. The govern- plant began construction in 2012 with an feed-in renewable energy for the grid.
shale exploration in other countries, particu- ment has acknowledged these needs and initial investment of $7.63 B. The facility Siemens also provided its SPPA-T3000
larly the US, have increased prospects for taken many positive steps toward replacing (FIG. 1) occupies an area of 9.8 hectares control system, which ensures the highest
a more ambitious shift toward gas, which coal with cleaner energy options. One of (24 acres) with a total installed capacity efficiency, flexibility and reliability of the
would cut annual coal consumption by an these solutions is the accelerated construction of 1.3 GW. This “next generation” power power plant’s control system. A long-term
amount nearly equal to the primary energy of highly efficient, gas-powered combined- plant adopted many environmental friendly service program (LTSP) covers scheduled
demand of the Republic of Korea. cycle power plants (CCPP). Experts estimate technologies, including noise control, the maintenance, spare parts, technical sup-
The country is expected to reduce the that the total power generation capacity in recycling of industrial use water for the gar- port, warranties, program management,
share of coal-powered generation to 56% China will exceed 2,500 GW in 2030, which den landscape, intelligent light systems, etc. power diagnostics and performance moni-
No effort was spared to make the plant’s toring for its SGT5-4000F gas turbines.
appearance and performance on par with
any of its type. Maintaining the flow to meet
This is due, in large part, to the power demand. Robust growth in natural gas
technology solutions provided by Siemens, demand in recent years has led China to
which has history in China dating back to become the world's third-largest LNG
1872, when it delivered the first pointer importer and to accelerate development of
telegraph to China and then supplied the its gas and LNG pipeline infrastructure. Sie-
first steam generator and built the country’s mens Industrial Turbomachinery (Huludao)
first tram line at the turn of 20th century. In Co. Ltd. (SITH) has already delivered more
1985, the “Memorandum of Comprehen- than 40 compressors for small LNG plants
sive Co-operation between Machinery, the out of its Huludao facility.
Electric and Electronics Industries of the At the end of the 20th century, CNPC
People’s Republic of China and Siemens proved gas reserves over 2,000 Bcm in the
AG” marked the collaboration. Tarim Basin and the Ordos Basin. In Feb-
In Fiscal Year 2014, Siemens announced ruary 2000, the CPC Central Committee
FIG. 1. The Jingxi Gas Thermal Power plant is a large part of China’s move from coal to a generated revenue of $7.16 B (€6.44 B) and the State Council decided to begin the
gas-fired power.
in China, and it is one of the largest for- construction of a vast pipeline and com-
eign-invested companies in the country. As pression station network to transmit the
of the end of 2014, the company had 20 abundant gas in West China to the central
R&D hubs, over 4,500 R&D researchers and eastern markets. The massive project
and engineers, and more than 10,000 active
patents and patent applications in China. See CHINA, page 18

FIG. 2. Siemens supplied three gas-fired SGT5-4000F gas turbines to the power plant. FIG. 3. China’s pipeline infrastructure. Source: EIA.

6  Friday, 30 October 2015 DAY FOUR ■ Gastech Conference Newspaper


Gas leak detection with false alarm suppression
Designed with artificial neural network the Observer-i detector has the same gas The UGLD features the Senssonic self-
(ANN) intelligence and Gassonic real-time leak detection coverage in high- and low- test function, which checks the device’s
broadband acoustic sound processing tech- noise areas. Because it is self-adaptive, the electrical integrity and microphone every
nology, General Monitors’ Observer-i ultra- detector requires no alarm set points to be 15 min. and ensures the Observer-i Detec-
sonic gas leak detector (UGLD) provides configured, nor do alarm set points need tor is operational at all times. Both the
reliable ultrasonic gas leak detection with to be adjusted if background ultrasound microphone and the microphone wind-
suppression of false alarms. changes over time. screen are constantly monitored to ensure
The Observer-i Detector (FIG. 1) makes It is ideal for FPSO vessels, gas/hydro- that the detector always has optimal sen-
it possible to fully analyze the sound spec- gen storage facilities, gas compressor sta- sitivity and detection coverage.
trum down to 12 kHz, due to the incorpora- tions, LNG/GTL trains, LNG re-gasification Designed to support large plant dis-
tion of ANN technology. The ANN algo- plants and petrochemical refining plants. tributed control systems, the Observer-i
rithm has been “trained” to automatically UGLDs are used in pressurized gas appli- UGLD Detector features HART and Mod-
distinguish between unwanted acoustic cations to complement conventional gas bus communication compatibility, along
background noise and dangerous gas leaks. detection methods. In outdoor or ventilated with 4-20 mA output, providing complete
This design provides a broader leak detec- locations, conventional detectors can miss status and control capability in the con-
tion range, which also increases sensitivity gas leaks due to wind conditions, gas dilu- trol room. It features ATEX, IECEx, FM,
to smaller gas leaks without interference tion or leak directionality. To compensate DNV GL and CSA approvals and is SIL
from unwanted background noise. for such situations, UGLDs recognize gas 3 suitable.
ANN technology also enables the detec- leaks by responding to the airborne ultra- General Monitors was acquired by
tor to be installed without time consum- sound instead of relying on physical contact MSA in 2010, making them the leading
ing “training” sequences, and provides between the gas and the sensor element. supplier of fixed gas and flame detection FIG. 1. The Observer-i UGLD design
provides a broader leak detection range,
industry-leading detection distance (up to This capability significantly improves total (FGFD) measurement technology in the increasing sensitivity to smaller gas leaks.
28 m). ANN technology also ensures that speed of response to dangerous gas leaks. world. ■

WOOD MACKENZIE SAYS LNG SUPPLY WAVE WILL DRIVE DOWN PRICES
LNG prices will test new lows toward the end of the market just as China gas demand falters. 50% from a year ago, while gas prices in the UK and the
decade as a wave of supply hits the market over the next “The LNG market is facing another oversupply, which Netherlands are near their lowest in a year. Producers’
five years as China demand slows, consultancy Wood is likely to be deeper and persist for some years,” said reactions to low prices and China’s policies on market
Mackenzie says. Noel Tomnay, Wood Mackenzie’s head of global gas and liberalisation and domestic pricing will be key to deter-
Producers will add as much as 130 MMtpy of new LNG research. Asia prices will be lower than in Europe mining how far the market will fall before stabilizing,
LNG in the next five years, nearly three times the vol- and at their weakest between 2017 and 2019, while the Tomnay said. Gas prices in Europe and Asia would have
ume added by Qatar between 2008 and 2010. The new European prices will not hit their bottom until 2020. to hold higher than $5/MMbtu to prevent US LNG from
supplies, mainly from Australia and the US, will hit the Spot LNG prices in Asia have already tumbled by being shut in. ■

Gastech Conference Newspaper ■ DAY FOUR Friday, 30 October 2015  7


Small-scale LNG plugs pipeline gaps,
complements traditional LNG
Gas Processing spoke to Hasan Dan- applications—power generation, indus- can speed up the development of the net- the option of expanding operations in the
dashly, president and CEO of Downstream try, petrochemical production and trans- work by liquefying or compressing gas at future, as capital allows. Big LNG plants
Technology Solutions for GE Oil and Gas, portation—a network is required. Often, a small scale, at the point where the gas require large input sources of natural gas
about the role of small-scale LNG in the the network remains the integral part of becomes available, and then transporting and require investment in a large, full-
evolving natural gas marketplace, the chal- connecting the source of gas to the points it to the point of use. We call this the Vir- capacity system upfront. But when you
lenges and opportunities for implement- of consumption, such as power, industry, tual Pipeline, with alternative transpor- have a plant that’s assembled from 10
ing small-scale gas processing in different transportation, etc. tation methods, such as trucking, taking small-scale LNG trains, its operation and
world regions, and the outlook for floating The networks that connect these points the place of physical pipelines (FIG. 1). It maintenance flexibility can be optimized.
LNG (FLNG). are made of pipelines, of which the US supplements the network, and the benefits In the field, it takes a lot less time to put
has an abundance. However, as we know, of that supplement and of the small-scale the modules together. Also, one train can
GP. What do you see as some building new pipelines is not cheap and is LNG process are faster speed to market be installed at a time, and the system can
of the advantages of small- time consuming—they have to go through and lower CAPEX, so gas demand can be be scaled up by adding trains as is neces-
scale LNG vs. large-scale a lot of regulatory hurdles before they are met quickly and cheaply. sary or financially feasible.
LNG? How is small-scale gas built. LNG tankers (and CNG tankers, for There are multiple applications for this At the international level, it gets very
processing transforming the shorter distances) are another part of the technology. In North America, there’s an interesting. Small-scale LNG is devel-
developing world, as well as network. They enable gas to be liquefied application in the oil field, which GE has oping in China and can be implemented
US infrastructure? in one part of the world and then moved to already demonstrated, through a JV with within relatively small space constraints
Dandashly. Gas is clearly becoming another part of the world for consumption. Ferus Natural Gas Fuels, in an agreement (FIG. 2). A lot of transportation in China
more abundant in the world. It’s one of the However, it takes a while to build net- with Statoil. In this agreement, the JV is is driven by natural gas. Since they are
cleanest fuels, and it’s a fairly cost-effec- works involving big LNG plants, tankers capturing flared gas in the Bakken shale developing the market for vehicles and
tive fuel. To capitalize on this gas for many and pipelines. There are areas where you play. We treat the gas, we compress it other transportation methods, the demand
into CNG using GE technology, and then for new vehicles is higher than in a more
we move it to the rigs and fracing pumps saturated market. New vehicles running
in the Bakken using Ferus Natural Gas on natural gas can be sold more easily,
Fuels’ expertise in distribution. This strat- which is easier than retrofitting vehicles
egy is good for the environment because already on roads. Small-scale LNG also
we’re capturing gas that would be flared has an advantage in China because, from
otherwise, and we’re also saving our cus- a regulatory perspective, LNG is taxed and
tomers money on diesel used to run rigs priced differently than regular gasoline, to
and fracing pumps. provide an economic advantage.
Other applications for small-scale LNG In Indonesia, there is a growing need for
in North America focus on transportation. power and an abundant supply of gas, but
With retrofitting, you can use LNG or CNG transmission grids and pipeline networks
instead of diesel for heavy-duty trucking, are not well developed. Virtual pipeline net-
locomotive, marine and mining operations. works can provide interim, and sometimes
For some of these vehicles, natural gas can permanent, solutions.
now be both the cargo and the fuel. Sub-Saharan Africa is another area in
Another application in North America which there’s a lot of gas and a big need
FIG. 1. GE’s Virtual Pipeline uses small-scale LNG production and truck delivery of gas to
is exports. Sometimes there’s less gas for power generation, but there isn’t a suf-
supplement energy networks at a faster speed to market and lower CAPEX. available to process, or it’s desirable to ficient pipeline network. In northern Nige-
begin production at a smaller scale, with ria, many people’s economic struggles
are linked closely to a lack of access to
power. By liquefying gas on a small scale
and transporting it to areas of need, opera-
tors can reach key markets they otherwise
couldn’t, more quickly and with less capital
investment upfront. A pipeline can be dif-
ficult to build and maintain, but a Virtual
Pipeline can come online faster, enabling
greater agility in the network. This, in turn,
can provide power to areas where it was
previously unavailable or unreliable.
Small-scale LNG is an exciting space.
It’s not an “either/or” with regard to large-
scale LNG, though; one doesn’t take away
from the other. As gas becomes more avail-
able and more prevalent, small-scale lique-
faction and compression, and the concept
of a Virtual Pipeline, add to the network.
HASAN DANDASHLY, President and The large-scale LNG plants will always
CEO, Downstream Technology Solutions, be able to operate fairly efficiently and
FIG. 2. A small-scale LNG plant in China. GE Oil and Gas
cheaply with large volumes of gas, but
they take longer to build and can be more
expensive than small-scale LNG plants.

GP. In an ideal scenario,


how long does it take to set up
a Virtual Pipeline network?
Dandashly. A small-scale LNG plant
can be built in about a year. So, from when
you start planning the project to the time
you have the plant down on the ground and
producing, it could be as little as 18 months.
Of course, to complete the full supply and
FIG. 3. A small-scale LNG plant in Australia. demand network, transportation logistics,
offtake agreements and customer agree-

8  Friday, 30 October 2015 DAY FOUR ■ Gastech Conference Newspaper


ments must be in place so that the LNG can GP. What opportunities do you to build the whole infrastructure. So, it are different. Technology is global, but the
be utilized as fuel at the end application. see for floating LNG, and do you becomes a question of: How quickly can logistics and the EPC companies are differ-
We can build the plant itself in 9–12 think it will be a key technology you bring all the players together that are ent everywhere, and you need to have the
months at the factory, and then it needs to trend in the future? required to provide the solution? In North know-how in each country to do this.
be installed in the field. The modules can be Dandashly. Floating LNG projects, like America, with the oil price being down GE Oil and Gas operates in 120 coun-
built in many different parts of the world. the Shell [Prelude] project and the Petronas and the diesel differential not being there, tries. Our scale gives us an advantage. So,
Likewise, there are major manufacturers [PFLNG 1] project, are definitely coming. I it will create the additional challenge of when we go to Nigeria or to Angola or to
for the trucks in many different places. think they’ll provide flexibility in that, many slowing that process a bit. Ghana, there are hundreds of employees
years from now, when the gas [reserves] are However, I think that, over the long already there—people who know the mar-
GP. Small-scale processing depleted, you can move an FLNG vessel— term, the technology adoption is happen- ket and who have the relationships with
solutions offer flexibility, cost you don’t have to dismantle it. ing. In North America, we have abundant people in that country, or who are from
effectiveness and speed to We do see that FLNG is an upcoming gas, so it will make sense to move heavy- that country—which gives us the ability to
market, which are extremely trend because it provides for that flexibil- duty trucking, locomotives and marine ves- move faster in those environments. ■
attractive to producers and ity and modularity, and we are very active sels into that space. It’s just a question of HASAN DANDASHLY has served as the
suppliers, especially in a in that space, both in our large-scale and time, and how all of the players will come president and CEO of Downstream Technology
low-cost environment. small-scale LNG technologies. We’ve sup- together to make it happen. Solutions for GE Oil & Gas in Houston, Texas,
Dandashly. Absolutely. Small-scale ported the Shell and Petronas projects, so The example of what we did with Statoil since July 2013. He leads GE Oil & Gas’ newly
structured business providing products
LNG does meet those needs. I think the we’re active in the major published proj- in the Bakken is a good one. Together with
and services in the traditional downstream,
discussion is also moving toward how ects in the FLNG space. Ferus Natural Gas Fuels (which specializes industrial and evolving unconventional
traditional LNG can utilize modular- in moving molecules over hard terrain) and resources and distributed gas markets.
ity to achieve greater cost effectiveness. GP. What do you see as the GE Ventures (the GE venture capital team Prior to this role, Mr. Dandashly led GE’s
At GE, we have solutions on both ends. greatest challenges in terms of that invests), we were able to bring GE Oil & Gas Global Services business since
May 2012, based in Florence, Italy. His career
We have great capabilities for large-scale technology implementation, technology to Statoil for use in an entirely
started with Honeywell, where he spent 15
LNG, and we have an expertise in building especially for newer solutions different context, solving a new problem, years in leadership roles in corporate research,
modular solutions. As a case in point, for like small-scale processing? which is flare gas reduction and monetizing air transport systems, and the industrial
a large-scale LNG project in Australia, we Dandashly. From a technology perspec- natural gas as a fuel for oilfield operations. automation and control divisions. Mr. Dandashly
built modules out of our plant in Italy and tive, I don’t really see that we have any By doing things like this, we create the cat- joined GE in 1998 as a software products
manager for GE’s Intelligent Platforms business.
shipped them, thereby saving significant challenges that we can’t overcome with alyst to get the idea moving, and now we’re In 2000, he moved to GE transportation, where
costs and time for our customer. the technology that we have available to us taking it from the Bakken to other places. he ran Train Management Systems, a business
We provide compression for large-scale today in the market, and especially inside As we look at Sub-Saharan Africa or offering dispatching and planning systems for
plants, which is the heart of an LNG train. GE. I think the challenges are more appar- Asia, we’re looking at not only how to freight railroads. Following five years in this role,
We have modular capability for our larg- ent in the speed of adoption, because of all simply sell GE technology, but also how to he moved to Qatar in 2005, where he led the
development of the company’s new technology
est LNG solution. On the small-scale side, of the different players that need to come bring logistics and the other players together center. In 2007, he moved to GE Energy as
we have complete modular capability, in, and they all need to come in at the same so that we can create a total solution. general manager for Power Generation Services
where our preassembled and tested mod- time to create that new market. You have to speed it up. You can’t make in the Middle East and Africa, based in Dubai.
ules (which comprise a large portion of the If we take the example of LNG or everybody wait for somebody else. At GE, Mr. Dandashly is a graduate of the Lebanese
liquefaction system) are shipped to the site, CNG for trucking, you need to convert we’re good at doing this, and we’re able to American University in Beirut, where he
obtained a bachelor’s degree in computer
and the onsite construction company can the trucks, you need to build the fueling bring these parties together to start proj- science, and of the University of Minnesota
assemble and commission a complete turn- stations and you need to build the com- ects. The partnerships that you need are dif- in the US, where he received a master’s degree
key train with minimal installation work. pression stations—essentially, you need ferent in every country, because the players in computer science.

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Gastech Conference Newspaper ■ DAY FOUR Friday, 30 October 2015  9


Observe unique design requirements
for LNG pumps and valves
G. KHIANI, Fluor Canada Ltd.
Pumps and valves for LNG service have sibility of catastrophic failure, and it elimi- Design features of LNG valves. raised-face valves must have a smooth
many exclusive design characteristics and nates tank penetrations below the liquid Valves used in LNG service (FIG. 2) are surface finish, as per ASME B16.5, with
specifications that must be accounted for level. It also removes the need for water designed with an extended bonnet to avoid a surface finish range of 125 root mean
and followed during the development of deluge systems and protects the tanks from packing freezing at operating tempera- square (RMS) to 250 RMS, as per ASME
an LNG terminal, storage tank or vessel being engulfed by fire, radiation, vandal- tures, and this allows operations to cycle B46.1. Ring-type joint-face valves must
(FIG. 1). Pumps are integrally mounted on ism and/or sabotage. valves when required. Valves manufac- have a smooth surface finish of 63 RMS.
the same shaft as the motor, which is sub- Key factors in the consideration of LNG tured for cryogenic applications should Face-to-face dimensions of valves
merged without coupling or mechanical application pumps are: comply with the type tested to BS6364 should comply with ASME B16.10,
seals in the LNG liquid. 1.  Lubrication and cooling systems or an equivalent standard; non-metallic ASME BS1873 or ASME API6D. Wall
For retractable, in-tank applications, 2.  Thrust equalizing mechanism materials should be restricted to polytetra- thickness should comply with valve design
the pumps can be installed inside the LNG 3.  Bearing configuration fluoroethylene (PTFE) and graphite. standards such as API 600, API BS5351
storage tanks in vertical pump columns, 4.  Junction box (JB) assembly and Fire-safe design to prevent internal leak- and ASME B16.34. Butt-welded valves
with foot valves located at the bottom. This electrical penetrations age is achieved by using resilient sealing must comply with the guidelines listed in
setup removes the possibility of tank leak- 5.  Cryodynamic inducer design materials that do not decompose or dete- ASME B16.25.
age due to piping or other external prob- 6.  Vibration monitoring systems. riorate in a fire. In a ball valve, the edge Key factors in the consideration of LNG
lems. The pump retraction system permits of the metal seat retainer, preloaded by the application valves include:
the unit to be safely removed from an oper- Cryogenic pump specifications. seat spring, comes into contact with the 1. The thermal conduction and
ational tank without venting gas vapor to The induction motors in cryogenic appli- ball to shut off the line fluid, which mini- heat transmission from the low-
the atmosphere. cations present certain design, manufactur- mizes internal leakage through the valve temperature fluid should be
By enclosing the entire unit within ing and testing challenges and advantages bore. The seat retainer also compresses. suppressed to a minimum, while a
a suction vessel built to an appropriate when compared to traditional motors. The flexible graphite retainer packing cooling effect is provided with the
pressure vessel code, such as American Since the fluid passes through the rotating prevents fluid leakage from between the help of an extension bonnet. The
Society of Mechanical Engineers (ASME) machine components, specific design and valve body and the seat retainer. The appli- packing is prevented from being
8, the system becomes safe and simple. testing parameters have been developed to cable codes comply with American Petro- exposed to the low-temperature
The pump is factory aligned; there are no incorporate the requirements of such low- leum Institute (API) 607 and API 2218, liquid, and a secure seal is achieved.
couplings and no auxiliary pipe work for temperature fluids. Fire protecting practices in petroleum and 2. A surface-hardening treatment
seal purge, bearing cooling or lubrication. Heat generation in the motor is not a petrochemical plants. with a cobalt-chromium alloy
These characteristics make for a light- concern when cryogenic fluids are moved. End flanges on valves should comply is recommended for better
weight, uncomplicated installation. Tests have shown that the stator coils of a with ASME B16.5 (for valve diameters up performance.
The ability to install the pumps inside submerged cryogenic machine experience to 24 in.) and with ASME B16.47, Series 3. A cavity pressure-relief feature
a storage vessel allows the vessel to be a 12°C maximum temperature increase A (for valve diameters larger than 24 in.). should be included.
placed underground or to be covered by during full-load operation. A bidirectional flow sealing mechanism 4. Seat lapping is needed.
mounding. This scenario avoids the pos- Each motor design is project-specific is used so that each of the upstream and 5. Stem-binding prevention
and based on application requirements. downstream seats of the valve is ade- is achieved with PTFE/
Each design is also verified by a perfor- quately maintained in contact with the ball perfluoroalkoxy construction.
mance test. Motor manufacturing involves by means of a seat spring. Line pressure 6. Low-emission-type packing(s)
proprietary insulation systems, best-in- further assists with this contact method. should be used to avoid
class techniques and the highest-quality The design of cavity pressure relief is compression creep stress.
materials to ensure that each unit meets provided to avoid trapped volatile liquid 7. The design must prevent abnormal
design conditions. being released into downstream. A shell pressure within the cavity.
Specifications in the consideration of pressure test should be performed, as per 8. The valve should be designed to
cryogenic application pumps include: API 598 and ASME B16.34. Test duration experience little to no pressure loss.
1.  Thrust equalizing should be a minimum of 5 minutes for all 9. The valve should have a fire-safe
2.  Bearing configuration valve components, apart from the backseat design.
3.  JB assembly test, and all valves must undergo a seat clo- 10. The installation of drip-plates
4.  Electrical penetrations sure test. should be considered, as needed.
FIG. 1. Diagram of a vessel used in the 5.  Cryodynamic design requirements The supplier must demonstrate that 11. All welded sections should be 100%
transport of LNG.
6.  Vibration monitoring. each valve has performed a satisfactory radio-graphed, and a die-penetration
test below –196°C (–230°F), or has been test should be conducted.
qualified by cryogenic testing for the rep- 12. Full traceability of the
ABS TO CLASS FIRST LNG CARRIERS resentative sizes and ratings proposed. All materials used, along with their
compositions, is required for
WITH KOGAS KC-1 pressure-retaining components—
ABS, a leading provider of classification services to the global marine and off- i.e., body, cover, extended bonnet,
shore industries, has been selected to class two LLNG carriers (LNGCs) for SK bolting, shaft, seat and disc,
Shipping, featuring the KC-1 cargo containment system (CCS). including the ball.
The agreement brings to five the number of LNGCs to be built to joint ABS/ 13. A chemical composition analysis
KR class for Korea Gas Corporation (KOGAS), the world’s largest LNG importer. of each cast/melt and heat batch is
Two 174,000-m3 LNGCs will be built with the KOGAS-developed KC-1 CCS required for all pressure-retaining
for SK Shipping at the Samsung Heavy Industries yard in South Korea. An addi- cast/forged or bar sections.
tional three 174,000-m3 LNGCs featuring the No. 96-type CCS—two for Korea 14. All components must be impact
Line Corporation and one for Hyundai LNG Shipping—will be built at Daewoo tested per ASME 8, Division 1,
Shipbuilding and Marine Engineering. at –196°C. ■
Upon delivery, the ships will be chartered to KOGAS and will carry shale gas
from the US to South Korea beginning in 2017. GOBIND KHIANI has spent more than 20
years in the energy and power business, with
KOGAS developed the KC-1 CCS in a seven-year joint development project more than 10 years of experience in western
with shipyards Hyundai, Samsung and Daewoo. The primary KC-1 concept is to Canada’s oil and gas industry, and additional
minimize the impact of primary barrier deformation on the insulation system from experience in the UK and Dubai. He is based
the hull. The system uses 1.5-mm corrugated stainless steel membrane as the pri- out of Calgary, Alberta. He graduated from the
University of Poona in India and completed his
mary and secondary barriers, and polyurethane foam with a density of 115 kg/m3
master’s degree in materials and mechanical
as the insulating material, an arrangement normally used in shore-based storage. engineering from the University of Calgary
ABS issued an extended approval in principal and general design approval for in Alberta, Canada. He is a registered
FIG. 2. A valve used in LNG service.
the system in 2014. ■ Photo courtesy of Bray Valves USA.
professional engineer working in the western
provinces and prairies of Canada.

10  Friday, 30 October 2015 DAY FOUR ■ Gastech Conference Newspaper


Heatric PCHEs are unlocking the future of FLNG
JOHN GAFFNEY, Heatric
Printed circuit heat exchangers 85% less than traditional technologies like
(PCHEs) are playing an important role in shell and tube (FIG. 1). This is due to an
shrinking and lightening the topside bulk exceptionally high heat transfer-to-volume
of the new global fleet of FLNG facilities. ratio, resulting in a smaller footprint for a
In FPSO applications, PCHEs are given throughput. The ability to combine
already well-established as they help multiple processes within a single unit
simultaneously tackle the three great brings further space and energy savings.
offshore challenges: space, weight and The direct cost and space benefits of
safety. For existing platforms, PCHEs compactness are considerable. In proj-
can be used to debottleneck and boost ects like FLNG, as in FPSO and other off-
throughput. For newbuild projects, like shore platforms, the very low size/weight
FLNG, compact heat exchanger technol- envelope for a given duty allows PCHEs
ogy offers the opportunity to design-in to unlock a “multiplier effect,” saving
higher levels of process efficiency, safety weight, complexity and substantial con-
and durability, unlocking many additional struction costs throughout the platform
financial and operational benefits. build process.

The limits of space. Ground-break- The core delivers savings and


ing FLNG vessels, such as Shell’s Pre- capabilities. An infinite variety of
lude, are almost twice the size of the flow geometries can be designed into the
biggest FPSOs under construction. But flow channels of a PCHE, allowing every
not all FLNG vessels will be built on unit to be custom-designed to precisely
this scale, and even behemoths need to match the heat transfer and pressure drop
optimise their space, particularly given requirements of each application (FIG. 2).
the precarious economics of “stranded” Adjustments to path, diameter and wall-
reserves. In other words, equipment foot- thickness can all be made to optimise for
print really matters in FLNG. fluid types, in-process mixing, multiple
Meanwhile, topside bulk plays a big liquid and gas combinations, extremes of
part in determining the operational effec- temperature and pressure and wide differ-
tiveness of even vast vessels like Prelude. entials in the two. The finished plates are
Reduced topside weight lowers the centre then diffusion bonded (FIG. 3) into a single
of gravity, improving stability in heavy block using a high-temperature, solid state
weather. The physical size of a PCHE unit joining process that promotes grain growth
(whether measured in terms of footprint, FIG. 3. Welding PCHE blocks together to form a larger core.
volume or weight) is often as much as See HEATRIC PCHES, page 17

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FIG. 2. The chemically-etched flow channels of a Heatric PCHE.

Gastech Conference Newspaper ■ DAY FOUR Friday, 30 October 2015  11


Black & Veatch forms GTL partnership
to solve processing challenges
DOUG MILLER, Black & Veatch
In today’s low-oil-price environment, industry and maximizing the strengths of cobalt, with promoters, such as noble met- GP. What are the biggest
energy operating and service companies each organization. As part of this contin- als or oxides. These GTL catalysts are gen- challenges and solutions for
are finding synergies in mergers and acqui- ued emphasis on growth plans for the GTL erally found with various supports, such as companies that want to acquire
sitions to create added value and to reduce industry, and with responsibilities as part alumina, silica or titanium. and operate GTL facilities?
costs. The same holds true for natural gas- of the B&V oil and gas business line, B&V Economics are a function of project Miller. Two key challenges are, first,
focused companies. and EFT are involved daily in the develop- drivers and decisions that the end users establishing the infrastructure to address
Whether gas is developed as associated ment and advancement of GTL technology must factor into their determination for the gas supply and the liquid products and,
gas from oil wells, produced from gas and and are excited about the future potential selection. One selection might be less second, developing an economic, attractive
condensate wells, or discovered as stranded for the industry. expensive than another, yet may not pro- solution for the overall facility.
gas in remote or harsh environments, the Our GTL process knowledge, coupled vide the same productivity or yields and The first challenge that the industry is
best way to optimize the value of gas is to with our EPC project execution, allows may be less active. facing is to develop the infrastructure to
move it to consumers in a high-demand B&V to participate from early feasibility To assess the economics for catalyst accommodate the liquids generated at pro-
form. In many regions around the world, studies through detailed engineering, com- choices, it is important to be aware of the posed GTL facilities on the product end.
that form is liquid fuels. As a historical missioning, startup and performance test- overall project economics and drivers for Pipelines often are not available to accom-
leader in GTL technology, Black & Veatch ing of facilities. selection. For example, the EFT catalyst modate these syncrude or lubricant prod-
(B&V) is ramping up its capabilities to is highly productive and active, and the ucts. Instead, facilities are handling these
serve this growing market. GP. How has GTL plant design and favorable economics have resulted in it products via rail or trucking.
In the fourth quarter of 2014, B&V and technology evolved over time? being selected for various projects. The Another challenge is to develop the gas
Emerging Fuels Technology (EFT) joined Miller. Companies are continuously EFT catalyst is commercially available for gathering and collection facilities to feed
forces to improve the speed-to-market, searching for means to find solutions that use on GTL projects. smaller GTL units in remote locations
cost-effectiveness and reliable pathways address cost, scheduling and attractive eco- where stranded gas exists or where wells
to implement GTL projects. The agreement nomics. Technology companies like EFT GP. Is GTL a good solution for are presently shut in.
covers projects that use a variety of feed- continue to address more capital-efficient stranded gas in remote locations Second, finding a solution to satisfy the
stocks, including natural gas, municipal process designs, catalyst productivity, cat- and harsh environments? economics of the facility is a problem that
solid waste, biomass and coal, which are alyst life and the ability to produce high Miller. Yes. The potential and volume companies are facing while oil prices are
often collectively referred to as XTL. yields at favorable conditions. of stranded gas in remote locations make depressed. However, through creative tech-
Under one aspect of the agreement, Engineering companies often look for GTL an attractive option for those types nologies like skid packaging, as well as
B&V will apply its expertise in EPC proj- ways to package equipment in skids and to of applications. It is important to assess developing specialty product lines, B&V
ect execution, as well as in modular and standardize, where feasible, to make repeat- the volume of the stranded gas in various and EFT offer solutions that are attracting
skid-mounted design and standardiza- able designs for future units to reduce over- fields to couple the appropriate size and attention due to favorable economics.
tion, to develop and implement packaged all plant cost and scheduling. Looking at number of GTL facilities for that field.
designs for small-scale GTL and XTL this from an industry perspective, GTL has Facility capacity can be constructed and GP. What new or next-generation
plants with design sizes ranging from 500 continued to spark interest as companies and adjusted to match the field size. GTL technology will B&V roll out
bpd to 10 Mbpd. The packaged designs, environmental demands evolve to reduce Stranded gas is also a viable means for in the near future?
which use shop-fabricated modules that emissions from oil and gas operations. skids and modules, depending on the loca- Miller. Stay tuned through the year as
can be shipped by truck, result in reduced Also, flared gas regulations are driving tion, the field size and the GTL volume B&V and EFT release information on the
project costs and timelines. demand for capture, and GTL is a potential required. Utilizing GTL for these stranded FLARE BUSTER plant design. This con-
Gas Processing spoke with B&V’s vice solution. Cleaner transportation fuels gener- fields is an appealing means of develop- cept is designed to utilize stranded gas or
president and manager of oil and gas, Doug ated from Fischer-Tropsch (FT) synthesis of ing them. flared gas on smaller-scale volumes, such
Miller, about the state of the industry and syngas are becoming an environmentally For these locations, the infrastructure, as through individual plants in the 500-bpd
what lies ahead for GTL technology. desirable way to reduce fuel burn emissions. product handling and transportation of the to 1,000-bpd range that are capable of pro-
Furthermore, engines are benefitting GTL liquids require close evaluation. ducing GTL products.
GP. How long has B&V been from performance improvements, as well The FLARE BUSTER design will be
designing GTL systems? as from the use of synthetic lubricants gen- GP. Has the oil price drop a skid-based, transportable solution to
Miller. B&V began participating in GTL erated from synthetic crude oil. affected the GTL market? achieve flexibility in installation and relo-
plant designs in the early 1990s. The com- Miller. The reduction in oil prices has cation, as well as to reduce construction
pany has professionals with project experi- GP. How has the EPC of modular impacted the economy as a whole, from a challenges in remote locations. This will
ence dating back to the 1980s. Our experi- GTL facilities changed over time? gas processing perspective. While transpor- result in emissions-control benefits for
enced professionals have been instrumental Miller. The evolution of the technology, tation-type GTL fuels derived from natural locations that are heavy in gas flaring. It
in working with catalyst and technology and the approach to streamlined costs and gas have seen reduced margins, specialty will also provide a way to produce at wells
suppliers, such as EFT, which has a proven, schedules for facilities, have resulted in a products derived from the GTL process that are shut in because of insufficient
licensed technology and a patented catalyst greater demand to find skid-packaging and have higher margins and have not realized means to consume the produced gas. ■
for producing GTL products from syngas. modular-construction solutions. the same impact. Projects to upgrade GTL
As a team, B&V and EFT are creat- Factors include providing construc- products to lubricants and waxes have an DOUG MILLER is vice president and business
ing and developing GTL solutions for the tion in remote locations, where resources opportunity despite the lower oil prices due line manager of oil and gas operations
for Black & Veatch. Mr. Miller is responsible
and site-specific issues make construction to these higher product margins. for execution oversight for the oil and gas
more difficult and costly. Also, the indus- Additionally, the GTL business has the business line within B&V’s energy business,
try has experienced times when construc- versatility to produce GTL liquids from ensuring that project team activities reach
tion resources were constrained. The use of feed sources other than natural gas, result- successful execution, including cost and
skids or modules in such a situation helps ing in a generation of valuable products schedule objectives, as well as safety and
quality plans, for the entire scope of work.
reduce field hours for construction. that are less sensitive to oil prices. Mr. Miller assists business development
Additionally, the use of skids and mod- Furthermore, environmental drivers to activities that address the full realm of
ules has increased to accommodate the con- reduce emissions can also support GTL midstream gas processing involving treating,
cept of offshore applications, where plac- production that is less sensitive to oil NGL recovery, fractionation and activities
ing modules on a floating unit is desirable. prices. Lubricants from GTL are more for other means of monetizing natural gas,
such as GTL technology.
Developing skids and standardizing sizes environmentally friendly than traditional Mr. Miller previously served as the process
also aids in repeatability and flexibility to oil-based lubricants. chemical department manager for B&V.
deliver a product to market faster. GTL simply requires syngas as a feed- Prior to that role, he held positions over
stock for the reaction. There are a multitude 24 years as a project manager, chief engineer,
GP. What type of catalysts of other markets, aside from oil-based driv- engineering manager and principal
process engineer.
for GTL technology are the ers, to create a starting-point feedstock for Mr. Miller began his career as a chemical
DOUG MILLER, vice president and most economical? GTL synthesis, such as biomass, flared and engineer for Eastman Kodak in Longview,
business line manager of oil and gas Miller. GTL catalysts for FT reactions stranded gas, and other zero-carbon-fuel or Texas. He is a registered professional
operations for Black & Veatch (B&V)
are generally active metals, such as iron or low-carbon-fuel feedstocks. engineer in Kansas.

12  Friday, 30 October 2015 DAY FOUR ■ Gastech Conference Newspaper


LNG projects pull big financing
with long-term contracts
ADRIENNE BLUME, Gas Processing
At Thursday morning’s Special Focus Other energy sectors, such as power and Lovatt also pointed to BP Global’s take and tolling agreements will remain
stream panel discussion on developments water; upstream oil, gas and coal; petro- Tangguh LNG project in Indonesia, which vital. “However, that doesn’t mean there
and investments for emerging gas markets, chemicals; renewables; and infrastructure has seen sponsor guarantees remain in can’t be changes and aspects of those proj-
Melanie Lovatt, Finance Advisor—LNG attract, on average, $1.8 B per deal, at place throughout the entire repayment ects that deal with shorter-term offtake,”
Research Reports for Poten & Partners, slightly higher margins than LNG. These horizon. Additionally, completion guaran- Lovatt said. “I think merchant offtake will
explained why LNG liquefaction projects other sectors have good support from tees are in place for projects like INPEX’s only happen if the LNG industry becomes
have managed to attract so much funding. banks, but about 20% less funding per deal Ichthys, Santos’ PNG LNG and Sempra a lot more liquid, with more liquid pric-
LNG liquefaction projects have taken than LNG, Lovatt said. Energy’s Cameron LNG. ing, and if it becomes more commod-
eight of the top 10 project finance (PF) itized,” she said.
deals in the last 10 years, Lovatt noted. LNG projects have lower risks. “So, Emergence of new LNG market “Well-conceived projects will continue
The very first LNG PF deal was for Wood- why does LNG attract so much money? players. “The focus on these long-term to attract funding as long as they are well-
side’s North West Shelf in 1980. At $1.4 Why are these LNG projects the biggest offtake or tolling agreements has allowed structured. I think the question for every-
B, it was the world’s biggest limited- deals we’ve ever seen?” Lovatt posited. new players to come in,” Lovatt noted. body right now is where the demand will
recourse PF at that time. She cited long-term sales agreements—or, These new players are changing LNG PF go. But the financing is definitely there.” ■
as in the US, long-term tolling deals—as practices. Loan tenor has been reduced to
LNG takes lion’s share of financing. the main reason for the high LNG PF, since around eight years; 14 years is a more typi-
Over the last three years, LNG liquefaction these projects are characterized by volume cal time frame, globally.
projects have taken approximately 10% risk protection, and defaults are rare. Also, equity is coming from different
of the market’s PF loans. So far this year, Most other industry PFs are exposed sources, such as master limited partner-
LNG PF has closed about $18 B in debt. to volume risk—one example being pet- ships (thereby allowing a whole new group
This number could rise to over $20 B if rochemicals projects. Additionally, PF of investors into the LNG sector), private
Corpus Christi Liquefaction LLC’s Train 3 defaults are seen in the merchant power equity and funds.
and Cheniere Energy’s Sabine Pass Train 6 sector and for volume-based toll roads. However, LNG financing is also fac-
reach financial close. However, LNG project size and complex- ing new challenges. The fall in oil prices
On average, LNG projects have raised ity require bespoke treatment, Lovatt said. is culling projects, although PF should be
much more PF per deal, and at fairly low She cited the examples of Origin’s Australia able to cut balance sheet debt. Partnerships,
pricing terms, as compared to other sec- Pacific LNG project, which has return guar- sponsors and banks must work together
tors, Lovatt said. LNG pulls an average of antees and minimized exposure to coalbed with project operators to achieve success-
$2.2 B per deal from banks at a low 174 methane prices; as well as the $4.6-B sale of ful PF. Technical challenges also exist, as
MELANIE LOVATT, Finance Advisor—
basis points. Debt represents 67% of LNG BG Group’s Queensland Curtis LNG pipe- seen with emerging floating LNG projects.
LNG Research Reports, Poten & Partners
total project cost, on average. line infrastructure to APA Group. For large LNG schemes, long-term off-

ZOHR DISCOVERY IN EGYPT OFFERS


EASTERN MED HYDROCARBON POTENTIAL
The deepwater Zohr gas discovery Idku and Damietta have export capac-
in Egypt is of major significance to the ity of almost 13 MMty, and the country
region. As the largest gas find in the has export pipelines in place to Jordan
Mediterranean Sea, Zohr has the poten- and Israel. However, as a result of the
tial to supply much of Egypt’s increasing demand and production imbalance, all
www.ConstructionBoxscore.com
domestic gas demand and will likely have of the gas originally slated for export
an impact on regional gas commerciali- has been diverted to supply the domes-
sation plans, according to new analysis tic market, with the Jordan pipeline now
from global information provider HIS. used to reverse gas flows to Egypt from
STR EA M P R O J EC T IN TE LL IG EN C E
THE FUTURE OF DOWN
Eni’s announcement in late August Jordan’s LNG import facilities.
describing the deepwater discovery “While there are hopes that Egypt’s
well, Zohr 1X NFW, put initial potential exports may be revived at some stage, the
reserves at an estimated 30 trillion cubic immediate focus for Zohr will be on the
feet (30 Tcf) of natural gas, or 5.5 billion domestic market,” said Mohammed Zine.
barrels (5.5 Bbbl) of oil equivalent. IHS The imbalance is such that Egypt Market Intelligence for the Global Refining,
Energy analysis estimates that the find
has significant technical, commercial and
needs more big discoveries to have a
significant impact on the regional gas Petrochemical and Gas Processing/LNG industries
strategic implications for the gas mar- market, or make headway with ongoing
ket in Egypt, the region and the industry, negotiations to host regional gas discov- Project details on thousands of active projects and construction contracts in
where Egypt’s access to monetisation eries for export. the global refining, petrochemical, gas processing, LNG and solids industries
infrastructure will likely put it ahead of The Zohr development will also Advanced search, including by project type, scope, region, investment
rivals if commercial terms are right. depend largely on the gas price offered and more
“Egypt has fast-growing domestic by the Egyptian government. Gas prices
demand and decreasing production at have been increasing, with Eni recently Daily updates for new and updated projects
Welcome to the NEW Construction

the same time, so the Zohr discovery obtaining prices of $5.88/MMbtu. Addi-
Boxscore Database

The Weekly Boxscore Update e-newsletters


represents a major source of relief in the tionally, liberalisation of the Egyptian
Relied upon and trusted by HPI professionals for
context of increasing gas imports,” said energy sector may allow higher-priced
more than 60 years
Mohamed Zine, Regional Director for gas to be sold directly to industrial buy-
Africa at IHS Energy. ers rather than to state-owned companies,
Egypt used to be an exporter of gas, a point that is likely to encourage fur- For more information, contact J’Nette Davis-Nichols,
but the country has been facing increas- ther exploration and may yet help Egypt Specialized Products Manager, at +1 (713) 520-4426
ing energy deficits over the last four towards newly framed ambitions to act or [email protected]
years. Before the Arab Spring in 2011, as a regional gas hub. ■
the country had to run its existing LNG IHS is a leading source of information,
export plants below capacity due to lack
of gas production. The existing plants in
insight and analytics in critical areas
that shape today’s business landscape.
Logon to ConstructionBoxscore.com today!

Gastech Conference Newspaper ■ DAY FOUR Friday, 30 October 2015  13


Mega-projects can save megabucks—
Rethinking the FLNG vendor supply chain
MARK TIPPING, Lloyd’s Register
The engineering challenges posed by tionary even, when it comes to the lique- shipbuilding’s steady trade, there are short or more if sub-suppliers are factored in.
colossal FLNG projects are in danger of faction of natural gas on a moving plat- runs: instead of predictability and repeat- Will best intentions deliver the required
dwarfing the practicalities of realising form. This has led to a steep learning curve able expectations, there are bespoke stan- equipment, systems and components to the
the build. Focusing on the vendor equip- for equipment suppliers that have not been dards and novel demands. Now, a finely yard? These are the early days for FLNG,
ment supply chain from the outset, and the exposed to the floating offshore environ- honed production system is relying on a but supply chains are already being chal-
choice of codes and standards employed, ment before. Add to this the sheer scale supply chain 20,000 km or so in radius, lenged. It is not difficult to imagine an
are critical areas where expenditure can be and pace of FLNG projects. Even relatively opening up the project to uncertainty and emerging pattern where initial standards
protected, risks can be reduced and asset straightforward orders, such as for process risk, both technically and commercially. are diluted, equipment is sourced from out-
life can be enhanced. pipework, are shared among as many as 15 side of approved vendor lists, and a proj-
Supply chains have always been critical separate suppliers, who must all meet the The risks of operating in a new ect’s progress is stalled as suppliers realise
to industry’s success. Traditional shipbuild- same high-quality expectations. area. FLNG projects can cost up to $13 that the specifications go beyond what was
ing supply chains have been developed and Beneath seemingly standard requests B each. Give or take 10% either way, top- envisaged.
perfected to allow yards to construct ships lie unforeseen complications. “Standard” side manufacture can account for half of Inevitably, newbuild costs will escalate,
as effectively as possible. The supply chain implies a repeatable, consistent and pre- an FLNG vessel’s total build sum, with a as will the risk that supply chain issues will
remains equally as important for FLNG dictable outcome; but standards applied further 25% invested in the hull (FIG. 1). become operational problems.
assets; the issue is that, because a new to FLNG equipment are often blended and The remaining budget is split between
breed of floating unit is being built, almost synthesized, and therein lies the risk. To cargo containment (2.5%), accommodation Greater equipment integration.
every parameter has changed. the equipment vendor, what looked like an (2.5%) and other systems and components There is another compelling argument for
order on paper for a forged-steel, heavy- (20%). If newbuild costs spiral, particu- rethinking the codes and standards. FLNG
The unforeseen complications of duty API 600 valve turns out to be different larly in core parts, the very future of the newbuilds adopt the traditional approach
scale. While some of the world’s largest in practice. Compounding this is a wider FLNG business will be in jeopardy. for offshore projects—that is, applying
yards can stretch to accommodate these supply chain than ever before. Whereas To date, FLNG’s engineering challenges marine standards to every component
vast units, elements of the equipment sup- shipbuilding is production-centred, with have attracted attention and resources, below the main deck (except the accom-
ply chain are coming under enormous the major part of the supply chain within from designing super-large hulls to adapt- modation), and internationally recognised
strain. Much of the technology being a 100-km radius of the yard, FLNG con- ing major plant liquefaction systems for petrochemical standards to the topsides
applied to FLNG assets is novel, revolu- struction is engineering-based. In place of floating installations, preventing sloshing, and process equipment. This approach
safeguarding against cryogenic spills and is not fit for purpose. On FLNG assets,
devising other innovative solutions. How- marine, topside and processing equipment
ever, there is everything to gain by rethink- are more greatly integrated than has pre-
ing the vendor equipment supply chain, viously been the case, with some marine
one of the biggest risks to an FLNG proj- equipment migrating into the topsides
ect’s success. Despite these issues, oppor- and, conversely, certain topsides compo-
tunities exist to reduce risks and realise nents moving down into the hull. Drawing
potential costs savings. an arbitrary line along the main deck and
applying codes and standards according to
Challenging the supply chain. the break is not a cost-effective nor safe
First, codes and standards must be cho- answer to realising the most from the sup-
sen. Should an owner opt for the vendors’ ply chain, especially when considering the
benchmark—typically an industry stan- challenges it faces.
dard, such as ASME, AWS, IEC or Class— The solution is to review both the
or their own proprietary requirements? marine and petrochemical standards based
This decision is rightly seen as a matter on process requirements and safety con-
of risk vs. cost, but it needs broader con- siderations, assigning equipment, com-
sideration. By setting its own standards, a ponents and systems to either the marine
company can reassure stakeholders of the or offshore process according to best
very best project intentions, and satisfy engineering and safety practices rather
the demands set by legal and supply-chain than where the deck begins. At Lloyd’s
specialists. However, this approach will Register, we have formalised this task
FIG. 1. Shell’s Prelude, the world’s first FLNG, is shown here at its 2013 hull launch.
On FLNG assets, marine, topside and processing equipment are more greatly integrated
be expensive, arguably prohibitively so, into a Classification Plan, part of our
than has previously been the case. Source: Shell. for such vast FLNG projects. Vendors will organisation’s Offshore Rules. This initia-
charge a premium for delivering equip- tive brings together over 50 years of off-
ment to tailored specifications and owners shore experience, including our technical
will need to check that their specifications knowledge of LNG containment and liq-
are being met. uefaction technology, FPSO development
This is a global task across a supply and process engineering systems (FIG. 2).
chain that will span some 25 countries, Besides better delineation of codes and
standards, our approach offers owners a
means to identify their critical asset equip-
ment and rate them accordingly.

Striking a balance. Lloyd’s Register


can also help owners find the optimum bal-
ance between risk and cost, drive interna-
tional requirements where they need to be
driven, challenge others where safety and
reliability can be assured, establish bespoke
specifications only when they need to be
specialized, and take advantage of universal
codes and standards where items fit rou-
tinely. The complexity of FLNG projects
will never lend itself to a blanket approach,
but the fewer bespoke specifications, the
FIG. 2. Lloyd Register’s technical experts can help owners understand, accept and adapt MARK TIPPING, Principal Engineer
to the new nature of the FLNG supply chain. for FLNG Development, Lloyd’s Register See FLNG, page 17

14  Friday, 30 October 2015 DAY FOUR ■ Gastech Conference Newspaper


Gas can be the backbone of Asia’s energy mix
KURT ABRAHAM, Gas Processing
Despite the current industry downturn, the ‘Energy Challenge,’ although natural to say that China has made good progress LNG being an important component.
and in recognition that demand will grow gas is an important part of the solution,” over the last couple of years in implement- “Global LNG demand seems to double
with population, at least one gas advocate he noted. “Gas development will depend ing policies to reduce emissions.” every decade, and we see three-quarters
at Shell believes that the fuel will eventu- on far-sighted government policies and In Asia, overall, the Shell executive of that demand in Asia. For the future, we
ally be the primary fuel for the Asia energy increased collaboration between govern- said that the continent is meeting energy see large increases in LNG usage in China
mix. James MacTaggart, General Man- ments and businesses. Furthermore, deci- demand in a sustainable fashion, with and Asia.” ■
ager for New LNG Markets, Asia, India sions made in Asia now will have ramifica-
and MENA at Shell, told a Wednesday tions for several decades.”
afternoon audience at Gastech that there is He displayed two scenarios that Shell
plenty of compelling evidence to consider. is using in planning the future energy mix.
“Consider the fact that there will be 2 In the “mountain” scenario, coal and oil
billion more people by 2050 than today, continue to be the world’s largest energy
and all of them are going to need energy,” sources up to 2030. Then, their shares
MacTaggart said. “Additionally, across the begin to decline, such that electricity gen-
world, we expect the number of vehicles eration becomes completely “decarbon-
to increase from 800 million now to 2 ized” in the 2060s. In the second “ocean”
billion in 2050. We can also see energy scenario, noticeably longer timeframes are
demand doubling from the 2000 level, but required to decrease hydrocarbon usage.
CO2 emissions must be lowered to half of However, these scenarios could be influ-
what they are today to avoid serious cli- enced/impacted by today’s commodity price
mate change consequences. Rising living slump and its duration. In some situations,
standards will also demand more energy, gas is being squeezed in the energy mix in
so we’ll need three times the energy gen- favor of greater coal and renewables usage.
erated from renewables today. Finally, in “We see several countries showing worrying
terms of efficiency, we must be twice as signs of going down the coal-plus-renew-
efficient, using half the energy to produce ables path,” MacTaggart said. “Accordingly,
each dollar of wealth.” we’re also seeing emissions reducing too
MacTaggart said that there will be sev- slowly, or not at all. In Germany, increased
eral factors shaping the future use of gas coal usage to fill the gap is increasing emis- JAMES MACTAGGART, General Manager, New LNG Markets, Asia, India and MENA, Shell
in Asia. “There are no silver bullets for sions. By the same token, I’m now happy

Progress on ship-to- Nova Scotia’s offshore,


ship LNG transfer safety LNG potential
KURT ABRAHAM, Gas Processing KURT ABRAHAM, Gas Processing
As the number of ship-to-ship (STS) The Canadian province of Nova Scotia
LNG transfers increases worldwide, the would like you to know that its natural gas
global gas industry is working to ensure and oil potential is much more than just a
that these operations remain safer than couple of shallow-water production plat-
ever. Alasdair Barclay, an electrical, instru- forms. In fact, said the province’s energy
mentation and control engineer with Shell policy leader, there is great opportunity
Shipping Technology, provided an update for both LNG and deepwater offshore
on that effort to attendees at Gastech’s exploration.
Technical Stream on Thursday morning. “We actually have four LNG projects
“We’ve seen roughly 1,000 STS LNG being actively pursued,” said provincial
transfers completed to date, and we expect Minister of Energy Michel P. Samson. They
the number to continue to grow at an include the Bear Head liquefaction plant and
increased rate,” Barclay said. “The hazards export facilities (Bear Head LNG Corp.) MICHEL P. SAMSON, Minister of Energy,
associated with transferring LNG are ever- in Richmond County, which have received Nova Scotia
present. So, an emergency release system provincial approval, along with three proj-
(ERS) is provided to allow for a quick dis- ects in Guysborough County: Pieridae men. Our support and service experience
ALASDAIR BARCLAY, Electrical,
connect, in case of trouble.” Instrumentation and Control Engineer, Energy Canada’s Goldsboro plant and facili- strengthens these proposals.”
LNG STS is the transfer of LNG from, Shell Shipping Technology ties; H-Energy’s proposed, $3-B facility at The minister also touted Nova Scotia’s
or to, a feeder LNG vessel via an LNG Melford; and a project of unspecified scope deepwater prospects. “We have identified 15
tanker. STS also could occur between LNG ment was performed to determine how that Nova Scotia LNG intends to build. Tcf and more than 50-plus leads on our off-
carriers (LNGCs) and LNGRVs (LNG reliable the ERS needs to be and to provide Although industry analysts have ques- shore for gas, plus a potential 8 Bbbl of oil,”
Regasification Vessels) or Floating Stor- 100 times the risk reduction, and, conse- tioned these projects’ financial soundness in Samson said. “We have signed major lease
age and Regasification Units (FSRUs). quently, the hardware architecture was an era of low commodity prices, Samson is deals with Shell and BP. In fact, Shell has
Safeguarding that transfer is the job of altered. Engineers worked on the hardware looking ahead to better times and higher gas hired the Stena IceMAX rig (the world’s first
the ERS, but there are issues with its risk design to reduce the likelihood of spurious demand. “We have a number of factors in dynamically positioned, dual-mast, ice-class
and reliability, Barclay said. “The highest emergency shutdowns (ESDs). Included our favor. Nova Scotia has a reputation for drillship) for its campaign, with drilling set
risks related to the ERS are the failure of in that effort was further refinement of the regulatory stability, and it is no stranger to to begin in the next few months. The vessel
it to operate on demand, and the spurious emergency source of power. The ERC re- LNG. It takes less time to get LNG to India just arrived in Nova Scotia last week.”
release of the ERS during a transfer.” design improved the ability to withstand from Nova Scotia that it would from B.C. Having attracted these major firms,
To improve ERS reliability, engineers hydraulic pressure surges. (British Columbia). Also, there are three officials are promoting further activity.
looked at how to reduce risk due to fail- The heightened safety effort generated a pipelines out of Western Canada or the US “We provide seismic data, free of charge,
ure on demand, as well as reduce risk practice of conducting a partial test of the that could supply the gas needed.” to encourage industry to conduct further
related by spurious release. With regards ERS before each STS LNG transfer. Every In addition, Samson said, “Where the exploration,” Samson said. Responding to
to improving the design of the system’s 12 months, a full test of the system will four major projects are sited, these are areas a question from the audience, the minister
emergency release couplings (ERCs), be conducted. Thanks to SIL verification, with a tradition of industrial activity. They acknowledged that this effort has an ulterior
engineers also looked at how to reduce engineers achieved their goal of reduc- (local residents) are very excited and are motive. “Yes, there’s no question that more
risk related to spurious release. ing the probability of spurious release of looking at ways to adapt their businesses offshore development means more royalties
A safety integrity level (SIL) assess- release of both the ERS and ERCs. ■ to these projects and also provide trades- and revenue for us (government).” ■

Gastech Conference Newspaper ■ DAY FOUR Friday, 30 October 2015  15


Utilizing open platform architecture,
expertise for improved compressor control
STERLING SCHMUTZ, Energy Control Technologies
After oil prices fell to the $40/bbl range developing a turbomachinery control system. •  Since the hardware is commonly A redundant control system was sup-
this year, global energy suppliers realized Turbomachinery control challenges require known in industry, end users and/ plied by the OEM for this application to the
the need to further scrutinize their existing advanced algorithms that are capable of or original equipment manufacturers customer. Because the OEM uses an open
projects and future investments. To approve protecting a compressor against surge while (OEMs) can begin pre-commissioning hardware platform for the control system,
those investments and encourage growth, simultaneously maintaining the process set- checkouts without having the Energy Control Technologies was able to
capital costs must be lowered. point. Additionally, it is incumbent to have turbomachinery supplier present, supply only a redundant pair of processor
John S. Watson, the CEO of Chevron, field service engineers that are not just PLC thereby reducing the overall time for cards to the OEM, which then integrated the
recently stated in an annual shareholder programmers, but rather turbomachinery start-up assistance from the specialized surge and performance control processors
meeting that his company would be going control experts with years of field experience. turbomachinery controls experts. into the overall control strategy, delivering
back to suppliers and asking for better pric- •  Both logic and continuous control a completely integrated control solution all
ing and terms. For turbomachinery and com- Open architecture benefits. There can be combined into a single on an open hardware.
pressor controls—which are vital for main- are significant advantages of using an open hardware platform, as opposed to The integrated HMI was supplied by the
taining the consistent and profitable pipeline architecture system for antisurge, perfor- the PLC for logic, and the dedicated OEM, and included the dynamic compres-
flow in gas and LNG applications—this mance, loadsharing, steam turbine governor, proprietary controller for continuous sor map and faceplates supplied by Energy
means that the days are gone when compa- gas turbine fuel control and turboexpander turbomachinery control. Control Technologies. Instead of a separate
nies relied on dedicated “black box” suppli- control. Advantages include: •  Because spares can be shared among device that would normally come from a
ers for their expert controls advice. Instead, •  Common hardware that is readily multiple systems, the number of proprietary “black box” control system sup-
they are exploring other alternatives. available in the market. spare parts is reduced. plier, the company supplied Active-X com-
Turbomachinery controls were initially •  Some PLCs offer SIL-rated (safety Without technological expertise, those ponents that enabled the OEM to integrate
offered decades ago on dedicated control- integrity level) components in the advantages are not as helpful. Energy them into its HMI.
lers because they were the only option that event that auxiliary safety functions Control Technologies is a turbomachinery Energy Control Technologies assisted in
possessed adequate speed. Today, many need to be added to the scope. controls consultant and supplier that has the start-up testing of the I/O, connections
manufacturers provide programmable logic •  Aftermarket support is obtained innovated new surge control techniques and tubing to the volume booster. A new
controllers (PLCs) that achieve speed equal locally, as the parts are sourced that prevent surge, with all the technol- seal gas heater control system was required
to or faster than that of dedicated controllers. locally rather than from the ogy placed on an open hardware platform. and installed during startup, and because
This has opened up the opportunity for solu- turbomachinery supplier. Because of the industrial experience of its the control system utilized an open archi-
tion providers to put algorithms on PLCs •  Flexible fault tolerance is available engineers and designers, Energy Control tecture, the additional control functionality
that previously did not have execution times (e.g., duplex power supplies and Technologies has developed algorithms and was implemented easily in the field without
fast enough to handle complex turboma- duplex processors, but simplex I/O). control strategies that resolve several con- a costly revision or special software.
chinery applications. •  Standard human machine interface trol challenges that previously existed in Due to the complexity of the surge limit
Although PLCs are now fast enough to (HMI) allows users to maintain available control systems. line, several different points were surge
compute and execute simultaneous turboma- their equipment without having tested to verify the surge points against the
chinery control algorithms, it is still impor- to return to the original Case Study. Energy Control Technolo- OEM-supplied design data. Field-tested
tant to have the technical competence when turbomachinery control supplier. gies provided antisurge and performance surge points did not line up with the OEM
control, and motor power limiting for a data. A discrepancy in the instrument data
duplex control system on an electric motor- sheet provided for the flow measurement
driven, inlet guide vane (IGV)-controlled device and a different start-up gas molecular
De-isobutanizer compressor. For this new weight accounted for the mismatch in the
construction project, Energy Control Tech- surge line. Once the OEM data and field test
nologies provided the control algorithms, data were reconciled, the actual surge limit
engineering and configuration to the OEM line was configured, as seen in FIG. 2.
involved in this project, which worked with
the engineering, procurement and construc- Global system deployment. Tur-
tion (EPC) contractor to install the Energy bomachinery control systems have the abil-
Control Technologies application in West ity to ride through failures in transmitters
Virginia, USA. In addition to variable IGV and not trip the unit. Energy Control Tech-
operation, a De-isobutanizer application has nologies has implemented fault-tolerant
varying molecular weight and is a very dif- action on loss of signal from flow and pres-
ficult application to control, protect against sure transmitters to prevent spurious trips.
surge and provide stable control for the main To protect the compressor and concurrently
process variable. Additionally, compressor minimize process upsets, the SurgePAC
suction pressure low-limit control is imple- output is set to the higher of (1) last good
mented via use of the antisurge valve (FIG. 1). position prior to transmitter failure, or (2)
As part of the design review with the pre-configured safe open position.
OEM during the front-end engineering and Energy Control Technologies, an ISO-
design (FEED) stage, Energy Control Tech- 9001-certified company, has deployed open
FIG. 1. Turbomachinery control system diagram for single-section, electric motor-driven
De-isobutanizer compressor with IGV. nologies provided engineering services for architecture systems around the world,
the following: ranging from single-section applications
•  The review of the piping layout to multi-section sidestream compressors,
for the correct pipe-run lengths including LNG applications. The company
•  Evaluation of the volume of drums has been evaluated by several OEMs and
and exchangers in the recycle loop is being utilized as a standard for surge,
•  Assessment of the location and performance and loadsharing control for
characteristics of check valves several of them. All of the company’s field
and block valves service engineers have more than 20 years
•  Transmitter inspection for location, of field experience starting up compres-
installation and calibration, speed- sors. By moving away from the proprie-
of-response and failure modes tary “black box” solutions and engaging
•  Antisurge valve performance Energy Control Technologies, customers
characteristics and stroke time. will increase the reliability and availability
Several design errors were eliminated of hardware and support, decrease over-
as a result of Energy Control Technologies’ all capital cost, and minimize the need for
FIG. 2. 1st-surge point tested on the De-isobutanizer compressor. review, thus avoiding costly delays during future support, as they will maintain the
commissioning. system themselves. ■

16  Friday, 30 October 2015 DAY FOUR ■ Gastech Conference Newspaper


Jereh Group, Primus Green Energy
announce global market collaboration
Jereh Group and Primus Green Energy held a media lead to a thriving domestic GTL industry, allowing gas wellhead for easy transportation offsite. Primus is working
event at the Jereh exhibition (Hall 5, B60) on Tuesday and oil companies to leverage the low cost of natural gas with oilfield services, production and midstream companies
to celebrate the launch of a global market collaboration despite the recent plummet in crude prices. to deploy its STG+ technology to monetize a wide range of
between the two companies. Executives from Jereh Group •  The STG+ technology can use a range of natural natural gas resources that are currently stranded, underuti-
and Primus Green Energy formally revealed details of the gas feedstocks, including wellhead and pipeline gas, lized or wasted through flaring and venting. ■
partnership and responded to related questions from a large dry or wet associated gas, “stranded” ethane, excess
crowd of attending media representatives. syngas from underutilized reformers or mixed
Jereh is an international, integrated oil and gas company natural gas liquids.
specializing in oil and gas engineering and construction, •  The systems’ stranded and associated gas
oilfield technology services and equipment manufacturing. applications offer an ideal solution to the lack of
Jereh has become China’s largest privately-held listed oil traditional natural gas pipeline infrastructure in
and gas company. remote locations, enabling the monetization of
Primus Green Energy is based in Hillsborough, New gas that would otherwise be vented or flared.
Jersey, and has developed a GTL technology called STG+ With a GTL technology that is economically viable at
that is economical at scales that are orders of magni- the 2 Mbpd range, the GTL potential of 40% of the world’s
tude smaller than Fischer-Tropsch. In addition to mid- gas fields could be unlocked. Another advantage of STG+ Tuesday’s announcement featured WANG JILI,
size GTL plants producing about 2,000 barrels per day is that Primus’ systems can also yield diluent or methanol, President, Jereh (right); SAM GOLAN, Chief Executive
(2 Mbpd), the technology can also be used in modular units depending on market demand and customer needs. In flared Officer, Primus Green Energy (second from right);
producing as little as 500 bpd that can be deployed onsite gas applications, the option of producing a liquid fuel that is and GAUTAM KHATU, Vice President of Program
Development, Primus Green Energy (second from left).
at oil and gas fields. The company believes that STG+ will miscible in crude can be added to the crude produced at the

HEATRIC PCHES, continued from page 11


across metal boundaries. The resulting PCHEs can easily be designed to com- PCHE is constructed from stainless steel
joins exhibit the same strength and ductil- bine multiple integrated processes into a or higher alloys (with no aluminium or
ity as the parent-metal and are significantly single unit, generating even greater sav- other low-melting point materials used
stronger than a brazed or welded joint. Dif- ings. The use of two-phase inlets and care- anywhere in the construction), so fire
fusion bonding also allows PCHEs to be ful channel design enables homogenous risks are also reduced.
made from a range of materials capable of mixing of multiple flows without any risk
delivering the corrosion resistance needed of poor distribution. Because the PCHE Unlocking the future. The future
during a long, harsh life offshore. design has discrete and separable fluid shape and disposition of a fully-fledged
channels, multi-sectioned cores and/or global FLNG fleet remains to be seen, but
Operations and safety. The high headers can be designed that enable the while questions of scale will certainly be
structural integrity and unique operating unit to be maintained without shutdown a key negotiable in the evolution of each
characteristics of this joint-less, self-sup- in situations where frozen glycol, wax or new FLNG project, matters concerning
porting matrix of flow channels at the heart hydrates may cause blockages (FIG. 4). safety and space optimisation will not.
of every PCHE are of particular value to The seamless core construction also Whatever liquefaction choices an FLNG FIG. 4. A gas/gas dewpointing exchanger
with split header can be de-rimed without
remote, floating processing applications. minimises vibration fracture risks and operator makes, PCHEs combine levels
shutting down the complete unit.
The “solid” heat transfer core results in a renders PCHEs immune to the kind of of compactness and robustness to deliver
unit that can accommodate high effective catastrophic failure mode associated with powerful solutions at the initial build
duties (i.e., up to 98%) and has a very wide shell and tube units. In the unlikely event stage, as well as exceptional debottleneck- Be sure to visit Heatric’s comprehensive
booth #D340 to speak with experts from
performance window—temperatures from of a leak, the etched design also ensures ing and scale-up potential, all within an its sales, engineering and customer support
cryogenic to 900°C (1650°F) and pres- that escapes are 100 times smaller than an unmatched security and safety envelope operations, and to see inside one of their
sures as high as 650 bar (8,700 psi). equivalent shell and tube leak. The entire of structural simplicity and strength. ■ game-changing devices.

FLNG, continued from page 14


greater the opportunity to reduce risk and can gain an advantageous position by under- as expeditors, certifiers and consultants will tra should be, “You get what you actively
cost with equipment supply. Since unfamil- standing, accepting and adapting to the new prove invaluable, critically reviewing and manage, not what you pay for.”
iar requirements are not being imposed on nature of the FLNG supply chain. revising reporting formats and mechanisms Focusing efforts now on the FLNG ven-
vendors, the danger of these requirements Greater engagement is essential. Own- to focus on problems (project matters) rather dor supply chain offers compelling benefits.
being missed altogether is eliminated. Tak- ers and contractors will need to understand than defects (local matters). Regular, timely Getting the right equipment in place will ulti-
ing action on a project, and involving tech- their suppliers’ (and sub-suppliers’) posi- communication will also help, with provi- mately contribute to the longevity of an asset.
nical experts like Lloyd’s Register, as early tion. Vendors must know what is non- sion for handling feedback and enquiries This focus will also develop a much-needed
as possible is fundamental. compliant, singling out project-specific from the supply chain, as well as broadcast- third type of specialist, one who bridges the
As a leading provider of compliance and requirements in the procurement specifica- ing instructions. Management will monitor gap between marine and topside equipment.
validation services, we know the value to tion document. Given the sheer extent of every link in the chain—from specification Employing personnel who are qualified and
major projects of ensuring that there is no equipment vendors, owners must budget to tendering, award, pre-production and experienced in applicable FLNG project
weak link in the supply chain. With the right for an extensive coordination effort. At key delivery—and act swiftly to address early standards and procedures will help revolu-
strategies and processes in place, owners locations, informed, dedicated teams acting signals of potential issues. The FLNG man- tionize this innovative technology. ■

RASGAS AWARDS CONTRACTS FOR HELIUM 3 PROJECT


RasGas Company Ltd. (RasGas) has awarded two symbolising QP’s policy and continuous efforts to utilise atmospheres for deep diving or unique blood gas medi-
agreements for the Helium 3 project: a sales and purchase the State’s hydrocarbon resources. Al-Kaabi also thanked cal mixtures; lifting for high altitude scientific research
agreement (SPA) with Air Products; and an engineering, RasGas for its efforts in achieving Helium 3, thus contrib- balloons and blimps; and other advanced applications.
procurement and construction (EPC) agreement with Chi- uting to the optimisation of Qatar’s North Field resources, Market studies show that the world demand for helium
yoda AlMana. The new Helium 3 plant, which is expected and realising the elements of Qatar National Vision 2030 has increased by 2.7% since 2013. With a projected
to produce up to 0.4 Bcfy of liquid helium each year, will to build a better future for generations to come. helium demand growth forecast, the Helium 3 project
be located in Qatar’s Ras Laffan Industrial City and is The Helium 3 project will be managed and operated by will contribute toward filling the supply gap that the
expected to become operational in early 2018. RasGas on behalf of Barzan shareholders, QP and Exx- global helium market might present.
Air Products was also awarded the technology license onMobil. RasGas also manages and operates Ras Laffan Air Products has a successful history of accomplish-
to supply the helium licensor package equipment for the Helium 1 and 2. Helium 2 set a production record when ments in Qatar. Air Products previously supplied the natu-
new Helium 3 plant. it reached 100% production capacity less than a year after ral gas liquefaction technology, key liquefaction equip-
Qatar Petroleum (QP) President and CEO, Saad Sherida its startup. Helium is essential to many applications, such ment and helium extraction boxes for all 14 LNG trains for
Al-Kaabi, described the signing of the agreements as an as magnetic resonance imaging (MRI); fiber optics and RasGas and Qatargas, as well as the large air separation
important building block for Qatar’s third Helium project, semiconductor manufacturing; metallurgy; breathing plant for Oryx GTL, which are all located in Ras Laffan. ■

Gastech Conference Newspaper ■ DAY FOUR Friday, 30 October 2015  17


CHINA, continued from page 6
TABLE 1. The progression of WEGP infrastructure construction tough production tasks and demanding pipe-
line protection, the staff ensures safe, reli-
Time 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
able and efficient operation for the WEGP.
Length, km 1,502 3,843 4,188 5,752 5,938 6,722 6,756 8,959 9,100 10,868 10,868 10,925
Distributing station 10 24 28 49 53 54 54 56 99 102 113 115 A partner in compression. Among
Compression station 0 1 8 9 18 21 26 26 15 25 29 29 other pipeline projects, the compression
Compressor 0 2 12 17 22 41 53 63 65 38 51 65 zone at Zhongwei Station has one com-
Valve chamber 61 133 138 155 221 249 251 326 388 438 432 439
pression workshop that houses 2 former
Rolls-Royce gas-driven compressor trains.
TABLE 2. Power and compression units provided by Siemens Pipeline, and one compressor unit zone. With a power rating of 29.53 MW/unit, the
With three inlet and four outlet pipelines, maximum and minimum continuous speeds
CNPC projects Year of operation Full pipeline flow, Bcmy Gas turbine units, No. of stations
Zhongwei Station implements gas filtration of the compressor are 5,040 rpm and 3,120
WEGP Line 1 2004/2011 17 19 GT + 6 VSD + 25 Compressors and measurement, pressure regulation and rpm, respectively. The compressor unit con-
(10 Stations)
pipeline inter-connection. As China’s larg- sists of an Industrial RB211-24G-T gas gen-
WEGP Line 2 2011/2014 30 12 GT + 12 Compressors est natural gas hub, it delivers an upstream erator (GG), an RT62 power turbine (PT)
(4 Stations)
capacity up to 77 BBcmy and a downstream and an RF2BB36 centrifugal compressor.
WEGP Line 3 2014 30 6 GT + 6 Compressors
capacity up to 90 Bcmy. In 2004, Rolls-Royce initiated a busi-
(2 Stations)
The process zone for WEGP I at Zhon- ness cooperation with CNPC and provided
gwei Station began construction in March RB211 gas turbines (FIG. 5) to the WEGP
2004 and was put into operation in Septem- project, including 19 RB211 gas turbines,
ber the same year, with a designed capacity 6 VSD and 25 compressors to WEGP 1.
of 13 Bcmy. After completion of the expan- Products supporting the WEGP stations
sion project, the capacity was increased to are listed in TABLE 2.
17 Bcmy. The zone mainly consists of one The Industrial RB211 gas generator is a
PIG transmitter-receiver unit, five cyclone two-spool design derived from the Rolls-
separators, five filter separators and 2 former Royce RB211 aircraft engine. A single
Rolls-Royce gas-driven compressor trains. row of variable position inlet guide vanes
(In May 2014, Siemens announced the acqui- in the low-pressure compressor module,
sition of Rolls-Royce Energy’s gas turbine combined with bleed valves and the two-
FIG. 4. South of the Mongolian border, the Zhongwei Compression Station is a major hub and compressor business.) Its main functions spool design, allow for lower power starting
of gas transportation. Source: Mr. Liang Ya Zhou. include the separation and filtering of the and optimum performance over the engine
gas received from WEGP I upstream of the speed range. The DLE version offers the
Gulang Station through the cyclone and filter same reliability and maintainability as units
separators, and the pressure boost and trans- with conventional combustion systems.
mission to the downstream Yanchi Station.
The process zone for WEGP 2 at Zhon- Widespread benefits. Every 10 Bcm
gwei Station was completed and put of natural gas transmitted may substitute
into operation in December 2009, with a 13 MMt of standard coal, equivalent to a
designed capacity of 28 Bcmy. The zone reduction of 0.61 MMt of harmful sub-
mainly consists of one pig receiver, two PIG stances and 44 MMt of carbon dioxide acid
transmitter-receiver units, five cyclone sepa- gas emissions.
rators, six filter separators, five pressure reg- As an international metropolis that has
ulators, two ultrasonic flowmeters, one gas launched the initiative of “innovation-driven
analysis cabin and one pollutant discharge transformation and development,” Shanghai
facility. Its main functions include trans- has taken advantage of WEGP to mend its
mission of the gas received from WEGP 2 pace in clean energy alternatives and imple-
upstream of the Gulang Station to Haiyuan ment the “Coal-Free Plan.”
Station, the Zhongwei-Jingbian cross-link As China’s largest regional economy,
line, Zhongwei as the starting station of the Guangdong is vigorously promoting natural
FIG. 5. Rolls-Royce Energy’s gas turbine and compressor business, which was acquired Zhongwei-Guiyang Pipeline, and mutual gas gas applications in power generation, ceram-
by Siemens in 2014, provided RB211 gas turbines to the WEGP project. transfer between WEGP 1 and 2. With two ics, shipbuilding and distributed energy to
ultrasonic flowmeters and sup-porting gas control air pollution and serve sustainable
kicked off the government’s Western China in October 2012. When fully completed, it monitoring facilities, two-way measurement development. The gas storage technology
Development Strategy (FIG. 3). will run from Xinjiang to Fuzhou in Fujian. between WEGP 1 and 22 has been enabled. has been deployed for peak shaving, and the
The West-East Gas Pipeline 1 (WEGP In the next five years, with the completion The process zone for WEGP 3 at Zhon- multi-layer salt cavern gas storage facilities
1) is supplied from the Tarim Basin gas of WEGP 3 and 4 and the Eastern China- gwei Station was inaugurated in December have been formed with the construction of
fields in the Xinjiang Uyghur Au-tonomous Russia Gas Pipeline, the national pipeline 2014, with a designed capacity of 30 Bcmy. Asia’s first salt cavern gas storage in Jintan,
Region to the Yangtze River Delta area, and infrastructure will boast flexible dispatch- The zone mainly consists of six cyclone Jiangsu. In Liuzhuang, Jiangsu, an obsolete
the 4,200-km pipeline runs from Lunnan in ing, sophisticated facilities and steady sup- separators, six filter separators, eight mea- oil and gas reservoir, has been reconstructed
Xinjiang to Shanghai. The construction of ply to power the continued improvement of surement instruments and three pressure into gas storage. In Pingdingshan, Henan,
WEGP 1 began in 2002, and it was put into China’s energy sector (TABLE 1). regulators. Its main functions include the Huai’an and Chuzhou, Jiangsu and Yuny-
operation by end of 2004. WEGP 1 has a CNPC’s West–East Gas Pipeline Co. separation, measurement and pressure regu- ing, Hubei, gas storage construction is in
capacity of 17 Bcmy of natural gas. is responsible for the management of the lation of the gas received from the upstream full swing. The Nanjing Metering & Testing
In the 11th Five-Year Plan, China made section of the WEGP system to the east of Gulang Station; transmission to the down- Center, an internationally advanced design,
significant progress in the major deploy- Ningxia. As of the end of 2014, the com- stream Haiyuan Station; gas transfer with and the metering substations in Nanjing and
ment of WEGP 2, aiming to transmit natural pany, which had embarked on the opera- WEGP 2; and gas regulation for the Zhong- Guangzhou are serving as the national hub
gas in Central Asia to the energy-guzzling tion of 10,925 km of pipelines covering two wei-Jingbian cross-link line and Zhongwei- for test and calibration of high-pressure,
regions in the Yangtze River and Pearl underground gas storages, two large national Guiyang pipeline. high-flow gas flowmeters.
River deltas. Construction of WEGP 2 oil and gas flow metering stations, 152 sta- The process zone for the Zhongwei-Gui- In WEGP 2, the construction of China’s
began in February 2008. Including the main tions and 439 valve chambers, had achieved yang pipeline was constructed at the same first homemade compression station in
line and eight sublines, which measure a a gas transmission capacity of 47 Bcmy. time as WEGP 2 and put into operation in Gaoling; the development and testing of
total of over 8,700 km in length, WEGP 2 July 2012, with a designed capacity of 15 high-pressure, large-diameter, all-welded
runs from Khorgas in Xinjiang to Guang- A remote hub in the center of the Bcmy. Its main functions include measure- ball valves; and 20-MW and 30-MW gas-
zhou, Nanning, Hong Kong and Shanghai. action. Zhongwei Compression Station ment and pressure regulation of the gas from driven compressors all represent milestones
WEGP 2 boasts a capacity of 30 Bcmy (FIG. 4), located at Zaolin village, Chan- WEGP 2, and transmission to the down- achieved by the Chinese pipeline industry.
of natural gas and connects the country’s gle town, Zhongwei, Ningxia, is perhaps stream of the Zhongwei-Guiyang pipeline. Maintaining a strong momentum, CNPC
four major gas regions and three major gas the most important hub of CNPC West- The Zhongwei Station employs a full- West–East Gas Pipeline Co. plans to build
markets—the Bohai Sea Rim, the Yangtze East Gas Pipeline Co. With a footprint time staff of 17, and in addition to the opera- new pipelines of more than 4,000 km in the
River Delta and the coastal areas. of 110,000 m2, Zhongwei Station houses tion and maintenance of the station, they are 13th Five-Year Plan period to extend its net-
The 30-Bcmy capacity WEGP 3 is 7,378 4 process zones for the WEGP 1, WEGP also tasked with the protection of a 147-km work to more than 15,000 km, and further
km in total length, and construction began 2, WEGP 3, the Zhongwei-Guiyang Gas pipeline section. In the face of increasingly increase its annual transmission and sales. ■

18  Friday, 30 October 2015 DAY FOUR ■ Gastech Conference Newspaper


Scenes from Gastech

Delfin LNG Founder and CEO FREDERICK JONES explains to attendees why he thinks In front of TOTAL’S stand, a television crew interviews attendees about Gastech’s events
the US is the perfect place to revolutionize LNG trade. and current natural gas issues.

Representing Chart Ferox a.s,


Location, location, location—foot traffic VACLAV CHRZ describes how to
remained heavy around KBR’S stand match LNG fueling stations to
in Hall 4. vehicle fleets during a CoTEs session.

An exhibitor explains his firm’s business line to interested attendees.

SAIPEM’S stand is filled with substantial information on offshore and onshore


construction and drilling projects.

Engineers compared notes at the Gastech attendees received vital


neighboring SAMSUNG and information on gas trends during
SHELL stands. a Commercial Stream session.

Gastech Co-Chairman PAUL SULLIVAN trades project stories with industry friends
at the WORLEYPARSONS booth. Exhibitors and customers enjoy a light moment at EXXONMOBIL’S stand.

Gastech Conference Newspaper ■ DAY FOUR Friday, 30 October 2015  19


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world’s gas and LNG value chain

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