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March / April 2013
LNG_MARAPR_2013_OFC.indd 1 20/03/2013 14:09
www.fmctechnologies.com
Copyright FMC Technologies, Inc. All Rights Reserved.
FMC Technologies invented the rst ofshore LNG loading technology. Today we are
developing new solutions built on proven components. Our Articulated Tandem Ofshore
Loader (ATOL) safely performs high-velocity LNG transfers in severe conditions with
waves up to 18 feet (5.5 meters). Our Ofshore Loading Arm Footless (OLAF) side by
side transfer solution accommodates massive new FLNG freeboards in the range of
82 feet (25 meters). And for tomorrow? Were practically there already.
VISIT US AT OTC BOOTH #1941.
Meeting
challenges
you havent even thought of yet.
LNG_MARAPR_2013_IFC.indd 1 20/03/2013 11:28
LNG Industry is audited by the Audit Bureau of Circulations (ABC).
An audit certificate is available on request from our sales department.
Copyright Palladian Publications Ltd 2013. All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without the prior permission of the copyright owner. All views expressed in this journal are
those of the respective contributors and are not necessarily the opinions of the publisher, neither do the publishers
endorse any of the claims made in the articles or the advertisements. Printed in the UK.
CONTENTS
ISSN 1747-1826
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March / April 2013
LNG MARAPR 2013 OFC indd 1 20/03/2013 14:09
12 LNGINDUSTRY MAR/APR 2013 MAR/APR 2013 LNGINDUSTRY 13
L
ooking back at 2012, a certain theme emerges centred around the
realisation of the abundant supply of natural gas in the US as a result of
the rapid growth in shale development and production. Because of this
supply growth, Henry Hub prices are at unsustainably low levels and demand growth
is necessary in order to stabilise prices and to support a healthier market with supply and
demand in closer balance. In the December 2012 release of its long-term fundamental outlook,
North American Natural Gas Market Outlook, Fall 2012,1 Navigant has anticipated that this market
growth will come in the near-term from the recovery of US industrial demand, in the mid-term from
the addition of North American LNG exports, and in the long-term from stable increases in US natural
gas-fired generation.
As most now recognise, growth in shale production has been profound over the last few years,
increasing 900% from around 2 billion ft3/d in 2005 to 20 billion ft3/d in 2011. In doing so, it has
transformed the North American gas market. While more recently natural gas-directed activity, as
measured by its drilling levels, has declined precipitously, the current total US dry production level of
64.8 billion ft3/d is still above the 2011 average levels of 62 billion ft3/d.2 This increase of
2.8 billion ft3/d can be explained by a variety of market factors, although the key ones are the
continued increase in Marcellus shale production, increased drilling and production efficiencies being
developed by the gas industry, and growth in associated gas as a consequence of increasing oil
directed drilling going on in the country. In this article, Navigant provides a snapshot of how it sees
the natural gas market unfolding over the long-term to 2035, as reflected in its North American
Natural Gas Market Outlook, Fall 2012 release.
As the US experiences a shale gas
revolution, the question now is where is
all this abundant natural gas going to go?
Rebecca Honeyfield and Gordon Pickering,
Navigant Consulting Inc., USA, suggest
three key demand areas.
MAR/ APR
2013
12
19 In or out?
Roberto Ruiperez Vara, PE, PMP, and Phil J. Suter,
CH-IV International, USA.
26 LNG global survey
John A. Sheffield, John M. Campbell | PetroSkills.
32 Is it a ship? Is it a permanent installation?
Simon Rainey Q.C., Quadrant Chambers, UK.
37 Efficiency vs availability in FLNG
Tom Haylock, KANFA Aragon, Norway.
42 Offshore processing
Dominique Gadelle, Tania Simonetti and Sylvain Vovard, Technip,
France.
49 A new venture
John Hritcko, Wison Offshore & Marine Inc., USA.
53 FLNG rock and roll
Fabien A. Wahl, Nikkiso Cryo Inc., USA.
59 Made to measure
Christopher Finley, Ebara International Corp., USA.
63 Glass sealing
Thomas Goettlinger, Schott, Germany, and Don Polkinghorn,
Ebara International Corp., USA.
67 Setting standards
Keith Stewart, Herose GmbH, Germany.
70 Moving forward
Jon Gorrotxategi, AMPO Poyam Valves, Spain.
75 A gas powered future
Luis Benito, Lloyds Register, UK.
80 All aboard
Tore Lunde and Per Helge Madsen, Gas Solutions, Wrtsil Ship Power.
87 Floating flexibility
Brooke E. King, Excelerate Energy, USA.
91 Ship to shore
Jack X. Liu, Liu Advanced Engineering LLC, USA.
97 Analysing the weakest link
Shane Hale, Emerson Process Management, Rosemount Analytical,
USA.
101 Go with the flow
Mike Williams, Invensys Operations Management, USA.
105 Partner up
Greg Hallauer, Yokogawa Corporation of America, USA.
111 Detailed data
C. Souprayen; A. Tripathi; G. Vaton; T. Grinnaert; M. Leguellec;
and L. Ait-Hamou, Fluidyn France.
117 Simplifying simulation
Colin Watson, Symetri, UK.
121 Standards, competence and quality...preserving a trinity
James R.C. Garry, Red Core Consulting, Canada.
03 Comment
05 LNG news
12 Wheres all the gas going?
Rebecca Honeyfield and Gordon Pickering, Navigant Consulting Inc.,
USA.
CB&I, as part of a joint venture
with Zachry Industrial, Inc.,
was selected to provide
front-end engineering and
design (FEED) services for
Freeport LNGs liquefaction
project located near Freeport,
Texas, USA. The project
encompasses three LNG
liquefaction trains, each
rated at 4.4 million tpy, and
corresponding pretreatment
facilities.
Graphic courtesy of Freeport
LNG Development, L.P.
LNG_MARAPR_2013_01-02.indd 1 25/03/2013 10:44
www.gastechkorea.com/LNGIndustry
Hosted by
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If you are developing new solutions, or have
new technology and equipment to showcase,
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platform for businesses to
Exhibit your new and upcoming products
Speak at our technical seminars to showcase services
Deliver your business and service solutions
to a targeted audience of decision makers from major stakeholders
and industry operators in the global natural gas industry.
Contact us today at +44 (0) 203 615 2850 or email
sales@gastech.co.uk to understand how Gastech can
help support your business objectives.
9 focused zones, 300+
exhibitors, every signicant
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of the Gas supply chain in Asia
Encouraging business by connecting supply chains
Gastech recognises that each sector within the
natural gas industry is unique and that there is a need
to develop relationships between clients and suppliers
within the supply chains. For 2014, Gastech will focus
on 9 key sectors for the natural gas industry to bring
the commercial & technical gas worlds together.
Globally connecting you to buyers or suppliers
of your technology to help you achieve your
business objectives
Procurement teams and buyers to uncover new
technology and solution providers for partnerships
on upcoming and existing projects
Suppliers and manufacturers to showcase new
technologies, tender for new business and meet
procurement teams from across the world
Natural Gas
Vehicles
(NGV)
HSSE
Ofshore &
Subsea
Technology
Gas
Monetisation
NGL/GTL
Liquefaction
Pipeline
Infrastructure
Unconventional
Gas Investor
Zone
Power
Generation
LNG & Gas
Carrier
Shipbuilding
Exhibitors who have conrmed participation for 2014s exhibition include:
LNG_MARAPR_2013_01-02.indd 2 22/03/2013 16:38
Managing Editor
James Little
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Advertisement Director
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Advertisement Manager, USA/Canada
Chris Atkin
chris.atkin@lngindustry.com
Advertisement Manager, EMEA
John Baughen
john.baughen@lngindustry.com
COMMENT
CALLUM OREILLY EDITOR
Editorial/Advertisement Offices, Palladian Publications Ltd, 15 South Street, Farnham, Surrey, GU9 7QU, ENGLAND,
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Circulation Manager
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Publisher
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LNG Industry Subscription rates:
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LNG INDUSTRY (ISSN No: 1747-1826, USPS No: 006-760) is published six
times per year: February, April, June, August, October and December, by
Palladian Publications and is distributed in the USA by by SPP, 17B S Middlesex
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POSTMASTER: send address changes to LNG INDUSTRY, 17B S Middlesex
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Uncaptioned Images courtesy of www.bigstockphoto.com
I
n the January/February issue of LNG Industry, I commented
on how rising LNG prices had contributed to Japans record
trade deficit of US$ 78 billion last year. Since then, the
countrys Prime Minister Shinzo Abe has met with President
Barack Obama in Washington to ask the US to permit exports
of its vast shale gas reserves to Japan. In a move that may help
facilitate such a deal, Japan has now signaled its intention to
join talks on the Trans-Pacific Partnership (TPP), a free trade
agreement (FTA) currently being negotiated by 11 countries in
Asia and the Americas.
This should come as no surprise, as Japan attempts to gain
automatic access to cheaper LNG. The US shale gas boom has
driven prices well below those seen in much of Asia and Europe.
US exporters currently price their gas off Henry Hub, which sells
for around US$ 3 4/million Btu, less than a quarter of the price
that LNG is sold for in Asia.
This price gap is leading to increasing pressure from Asia
for changes to traditional oil-indexed pricing and contract
mechanisms. Such change may be on the way. According
to a recent global survey of the LNG industry conducted by
John M. Campbell | Petroskills (the results of which are presented
in this issue, starting on p. 26), we can expect to see more short-
term contracts based on negotiated gas prices going forward.
The survey also suggests that an Asian hub pricing
may eventually prevail. The obstacles and opportunities of
developing such a trading hub have recently been outlined in
a report from the International Energy Agency.
*
In it, the IEA
suggests that the future role of gas in Asia will depend on
whether natural gas pricing is tied more closely with supply and
demand fundamentals in the region. The report emphasises the
importance of creating an Asian gas trading hub, with Singapore
put forward as the most likely candidate for such a role.
The industry appears to be on the brink of a price reform.
In the meantime, Japanese gas importers are understandably
reluctant to commit to oil-indexed LNG as they wait to see
how much Henry Hub indexed gas is allowed to flow out of
the US.
It will be interesting to monitor what influence Japans
decision to join the TPP negotiations will have on the prospects
of such exports. The fact that Japan has decided to join the
talks, in itself, does not automatically open the country up for
US exporters. The accord would still need to include natural
gas and requires congressional approval. There is also a
strong campaign underway by many opposed to unrestricted
LNG exports from the US, who raise both environmental and
domestic pricing concerns. However, bringing Japan into a FTA
agreement would certainly appear to be welcome news for
those companies trying to export LNG from the US.
The question is what impact those exports, and the potential
new LNG pricing structure, will have on the rest of the industry.
There are conerns that Japans desire for lower prices is holding
up other projects, where developers require the revenue security
provided by long-term, oil-linked contracts. As Ernst & Young
points out in its latest Global LNG Report: As substantial
volumes of lower-cost LNG move into Asian markets, projects
at the high end of the supply curve namely, many of the
Australian projects will become increasingly vulnerable.
The debate is set to continue at this years LNG 17
Conference in Houston, Texas. LNG Industry will be exhibiting
at the show, so please drop by stand 1065 to give us your
thoughts!
*
A summary of this report, and many more, can be
found in the new Special Reports section of our website:
www.energyglobal.com/news/special-reports.
LNG_MARAPR_2013_03-04.indd 3 25/03/2013 11:31
Compact heat transfer solutions. No compromises.
www.heatric.com
T: +44 (0)1202 627000
Performance, efficiency and safety by design.
Send your process data to Info@heatric.com and discover
how Heatric can help meet your needs.
n tough environments, some requirements are a given. You need high
performance, effciency and safety.
t's getting this performance from a compact heat exchanger with up to 85%
space, weight and cost saving on a conventional system that puts Heatric at
the forefront of heat transfer engineering.
The robust materials and construction of our compact diffusion-bonded heat
exchangers offer high thermal effectiveness of up to 98% through close
temperature approaches and perform at temperatures and pressures that
other compact units can't achieve from cryogenic to 900C (1650F) and
over 600 bar (9000psi).
The result of our 26 years' experience in the oil, gas and petrochemical
industries worldwide, our low inventory, high integrity, bespoke and fexible
heat transfer solutions are accredited to all international standards.
See us at LNG 17, Houston TX, 16-19 April, Stand 1951
|
OTC, Houston TX, 6-9 May, Stand 2341-D
LNG_MARAPR_2013_03-04.indd 4 22/03/2013 16:39
LNGNEWS
MAR/APR 2013 LNGINDUSTRY 5
Russia
GE awarded Sakhalin service contract
G
E Oil & Gas has received a 16-year service contract
extension valued at US$ 333 million for Sakhalin-2,
one of the worlds largest integrated oil and gas projects
that operates on Sakhalin Island in the Russian Far East.
As part of the new extension, GE also signed an MOU
with the provincial government to work together with them
in developing future power generation projects for Sakhalin
Island.
The service contract extension covers four GE
Frame7EA gas turbines that drive the process trains for
Sakhalins LNG plant and five GE Frame 5 gas turbines that
are used for electricity production at the site.
The service agreement includes planned and unplanned
outages, parts and repairs, an availability guarantee, remote
monitoring and diagnostics, and an on-site GE team of
technicians.
Sakhalin Energy operates the project under a
production sharing agreement with the Russian Federation.
The production capacity of the plant is 9.6 million tpy of
LNG, most of which is exported to South Korea and Japan.
Malaysia
JGC wins Petronas LNG contract
J
GC Corp. has been awarded the Engineering, Procurement,
Construction and Commissioning (EPCC) contract for the
9
th
LNG train and its associated facilities in the Petronas LNG
complex in Bintulu, Sarawak, Malaysia.
The contract is valued at US$ 2 billion and is scheduled for
completion at the end of 2015.
Over the last 30 years, JGC Corp. has performed the
EPCC contracts for the other eight LNG trains at the complex.
The company has also completed rejuvenation projects to
increase the plants capacity.
Train 9 will have a capacity of 3.6 million tpy of LNG and
will source its feed gas from Petronass newly discovered
offshore gas fields off the coast of Sarawak.
In January 2012, two groups including JGC were awarded
the contract to take part in a design competition for the
Front-End Engineering Design (FEED) and EPCC early works
for this project. Both FEED packages were then put through
a rigorous technical and commercial evaluation to select
the winning contractor, leading to the award of the EPCC
contract.
Tanzania
BG and Statoil still proceeding with LNG project
T
im Dodson, Executive Vice President for Exploration
in Statoil, has told Reuters reporters in an interview
that Statoil and BG Group intend to proceed with their
combined plan to build an LNG terminal in Tanzania and
are working with BG to find a suitable landing site.
The announcement follows news that Statoil has made
a third major gas disocvery in Block 2 offshore Tanzania in
a year. The company discovered 4 6trillionft
3
of natural
gas in the Tangawizi-1 well, which brings the total in-place
volumes up to 15 17 trillion ft
3
.
BG Group has also completed an appraisal programme
in the Jodari field of Block 1 offshore Tanzania, with a drill
stem test confirming the excellent quality of the Tertiary
reservoir.
Meanwhile, BG group has completed an agreement
to supply LNG to Gujarat State Petroleum Corporation
Limited (GSPC) in India. The Group will initially supply
1.25 million tpy of LNG beginning in 2015 and for up
to 20 years, potentially increasing to 2.5 million tpy
after two years.
LNG_MARAPR_2013_05-11.indd 5 22/03/2013 16:43
LNGNEWS
6 LNGINDUSTRY MAR/APR 2013
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Scan for the
Energy Global
iPhone/ iPad App
To read more
about these
stories go to:
Get the free mobile app at
http:/ / gettag.mobi
Scope for transformation of Asia-Pacific natural gas market
Breakthrough floating LNG agreement
Shell acquires Repsols LNG assets
USA
NASAs Michoud Facility to build LNG tanks
N
ASAs Michoud Assembly Facility in New Orleans, the
agencys only large-scale advanced manufacturing
facility, will soon be building LNG tanks with commercial
applications on Earth.
Lockheed Martin Corp. has announced it is drawing on the
unique experience and equipment at Michoud to manufacture
the LNG tanks. The company has received initial orders
to manufacture cryogenic tanks for fueling LNG-powered
vessels. As part of its longer-range business plan,
LockheedMartin will adapt production equipment used to
manufacture the external tank for the space shuttle to a wide
range of LNG supply chain applications.
Our entry into the LNG tank market is a prime example
of how Lockheed Martin is leveraging capabilities and
technologies developed for government programmes to
meet the needs of private sector customers who drive our
nations economy, said Gerry Fasano, President of Lockheed
Martin Information Systems and Global Solutions-Defense.
We are very pleased to add Lockheed Martins liquefied
natural gas tank production to the portfolio of advanced
manufacturing work and research under way here, said
Roy Malone, Director of Michoud Assembly Facility. It is
gratifying to see the manufacturing processes and capabilities
developed to build large space flight structures being put to
use in the energy industry here on Earth.
Netherlands
Shell launches LNG barge
S
hell has launched the first 100% LNG powered
tank barge at a Christening ceremony attended
by Shell CEO Peter Voser at Peters Shipyards in
the Netherlands.
The LNG powered barge, Greenstream, has
been built and designed at Peters Shipyards and
will be managed by the Dutch based Interstream
Barging (ISB). This is the first of two new LNG
powered barges to be chartered by Shell.
Greenstream has been launched on schedule and
will start operating on the Rhine in the next few
weeks.
Dr. Grahaeme Henderson, Shell Vice President
Shipping and Maritime, commented, Shell
anticipates a bright future for LNG as a fuel in
both coastal and inland shipping as it can help
customers meet strict emissions standards such as
those that are due to apply on the Rhine.
Greenstream has been designed with many
new safety and efficiency features. For example,
she has four small efficient engines rather than one
large engine as in traditional barges. This means
that power can be varied, as less is required to
travel downstream than upstream, with potential
for fuel savings.
LNG_MARAPR_2013_05-11.indd 6 25/03/2013 10:46
www.yokogawa.com/us
From Wellhead to Enterprise
Nigeria
USA
Australia
Brunei
Norway
UK
China
Chile
Algeria
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Netherlands
Russia
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France
Spain
Greece
Libya
Egypt
India
Indonesia
Korea
Japan
Malaysia Singapore
Oman
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47 LNG Carriers with Yokogawa DCS
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For over 30 years, Yokogawa has delivered eld proven engineering, automation,
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systems, you can depend on Yokogawa as your global LNG Automation Partner.
Visit Booth 315
at LNG 17
LNG_MARAPR_2013_05-11.indd 7 22/03/2013 16:44
LNGNEWS
8 LNGINDUSTRY MAR/APR 2013
D
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D
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6 - 9 May 2013
OTC 2013
Houston, Texas, USA
www.otcnet.org/2013/
3 - 5 June 2013
ILTA 2013
Houston, Texas, USA
www.ilta.org
3 - 6 June 2013
Unconventional Gas & Oil Summit
London, UK
www.oilandgasunconventional.com
6 - 7 June 2013
Small Scale LNG 2013
Oslo, Norway
www.tekna.no/intconf
24 - 27 September 2013
LNG Global Congress
London, UK
www.informaenergyevents.com/event/
LNG-World-Conference
30 September - 3 October 2013
Pump/Turbomachinery Symposia
Houston, Texas, USA
turbolab.tamu.edu/articles/
pump_turbomachinery_symposia
France
KSB plant visit
I
n November last year, LNG Industry was invited to visit
KSBs research and production facilities for a presentation
on the new technologies it is developing in the field of
rubber and cryogenic valves for the industry.
Delegates went on a tour of KSBs huge factory complex
in La Roche Chalais, France, where the valves and rubber
seals are made. The valves, up to 42 in. dia., are assembled
and cryogenically tested in pools of liquid nitrogen at
-196 C. Over 350 000 valves/year are produced on site.
KSB showcased a number of new technologies for the
LNG industry that will aid safety and efficiency, including
its range of double offset and triple offset cryogenic valves
for LNG tankers and terminals. The valve stem is offset
relative to its passages through the valve body, (i.e. it is not
in the centreline of the seat axis). A further offset refers to
the stem, which is laterally offset relative to the pipe axis.
It helps reduce the angle at which the disc is in contact
with the seat during closing and opening. The contact
pressure and wear are thus reduced, while the service life
is prolonged. To achieve shut-off at even higher pressures,
triple offset is required.
KSB also showcased its new Connectis loading system,
which was developed as a joint industrial project (JIP)
with Technip and Eurodim. Offshore loading/unloading
is an increasingly popular option for LNG producers and
consumers, and FSRUs and FPSOs are increasingly being
viewed as a safe investment. However, there are safety
implications for loading vessels that are rising and falling
with the sea swell. The Connectis loading system is a
lightweight system designed for offshore loading in harsh
conditions and can operate where the swell is +/- 5.5 m
(although it can be adapted for use in more conventional
onshore facilities). If emergency release is required for
whatever reason, then the unloading system can shut
off instantaneously, losing less than 2litres of gas in
the process. This is achieved by using cryogenic tandem
offset double-disc butterfly valves, which give long lasting
tightness.
LNG_MARAPR_2013_05-11.indd 8 22/03/2013 16:44
perfect fit
With offshore processing solutions that can cut your overall footprint
as much as 50%, UOP technology fits right into place.
For decades, UOP gas processing technology has been proven in land applications.
Now, with new lightweight, compact designs, UOP solutions can help your offshore
gas processing plan come together. Modularized units house all needed technologies,
and the small footprint is the optimal size for offshore applications. From acid gas
removal and dehydration to removal of mercury and other contaminants, UOPs
proven processes will increase your revenue from gas streams which means UOP
solutions are also the ideal fit for your bottom line.
For more information, visit www.uop.com/LNG.
2012 Honeywell International, Inc. All rights reserved
LNG_MARAPR_2013_05-11.indd 9 22/03/2013 16:44
LNGNEWS
10 LNGINDUSTRY MAR/APR 2013
Brazil
LLX Logistica wins LNG terminal construction
license
L
LX has received a preliminary and construction license
to build an LNG terminal at Au Superport. The license
was awarded by the State Environmental Department (Inea)
in March. The LNG terminal will be located at the onshore
terminal (TX2) between the north side of the breakwater and
the channels entrance.
With a capacity of 10 million m
3
/d, the LNG terminal will
have a regasification unit, which will supply MPXs thermal
electricity plant to be built at Au Superport, in addition to
other companies comprising the industrial complex.
Au Superport is located in So Joo da Barra, in
northern Rio de Janeiro state. The venture has been
designed to handle up to 350 million tpy of cargo, ranking
it amongst the worlds largest ports. The Superport has an
offshore terminal (TX1) and an onshore terminal (TX2), which
will jointly offer up to 47 berths and a 17 km pier.
Australia
QGC Pty Ltd awards GE maintenance contract
Q
GC Pty Ltd has awarded a US$ 620 million maintenance
contract to GE Oil & Gas Australia Pty Ltd to support
carbon-efficient turbines and other equipment at the
Queensland Curtis LNG (QCLNG) plant near Gladstone.
The QCLNG project will be the first LNG facility in the world
to operate the new GE-manufactured low-emission turbines,
which require less fuel than older models.
Under the 22-year contract, GE will provide maintenance
support for the plants 15 turbines and 28 centrifugal
compressors, gearboxes, generators and other equipment.
Use of the turbines will result in the QCLNG plant having
27% less greenhouse emissions than the original design.
All the turbines and compressors, which range up to 620 t,
have been delivered for installation on Curtis Island.
Five GE staff will initially be based in Gladstone to do
testing, inspections and maintenance, and planned shutdowns
will be managed by mechanical and electrical specialists.
The QCLNG project is on schedule for first LNG in 2014.
USA
LNG truck fuelling system unveiled
C
hart Industries Inc. has announced the release of a
high capacity, fully integrated LNG truck fuel system.
For the 2013 model year, Charts LNG truck fuel
system has been integrated into a self-contained unit
for simplified and expedited installation, as required
by high-volume assembly lines. Additionally, the
maximum single tank capacity has been increased
to greater than 100 diesel gallon equivalent (DGE),
enabling extended driving range without the cost of an
additional tank.
Combining various on-board fuel system
components into one integrated LNG truck tank
package will facilitate more efficient installation, stated
Tom Carey, President of Charts Distribution and Storage
Group. Providing 100 DGE of storage in a single fuel
tank will make LNG an even more attractive cost, space,
weight and driving range alternative in heavy duty truck
and bus applications.
LNG_MARAPR_2013_05-11.indd 10 22/03/2013 16:44
LNG_MARAPR_2013_05-11.indd 11 22/03/2013 16:45
12 LNGINDUSTRY MAR/APR 2013
LNG_MARAPR_2013_12-18.indd 12 21/03/2013 12:22
MAR/APR 2013 LNGINDUSTRY 13
L
ooking back at 2012, a certain theme emerges centred around the
realisation of the abundant supply of natural gas in the US as a result of
the rapid growth in shale development and production. Because of this
supply growth, Henry Hub prices are at unsustainably low levels and demand growth
is necessary in order to stabilise prices and to support a healthier market with supply and
demand in closer balance. In the December 2012 release of its long-term fundamental outlook,
North American Natural Gas Market Outlook, Fall 2012,
1
Navigant has anticipated that this market
growth will come in the near-term from the recovery of US industrial demand, in the mid-term from
the addition of North American LNG exports, and in the long-term from stable increases in US natural
gas-fired generation.
As most now recognise, growth in shale production has been profound over the last few years,
increasing 900% from around 2 billion ft
3
/d in 2005 to 20 billion ft
3
/d in 2011. In doing so, it has
transformed the North American gas market. While more recently natural gas-directed activity, as
measured by its drilling levels, has declined precipitously, the current total US dry production level of
64.8 billion ft
3
/d is still above the 2011 average levels of 62 billion ft
3
/d.
2
This increase of
2.8 billion ft
3
/d can be explained by a variety of market factors, although the key ones are the
continued increase in Marcellus shale production, increased drilling and production efficiencies being
developed by the gas industry, and growth in associated gas as a consequence of increasing oil
directed drilling going on in the country. In this article, Navigant provides a snapshot of how it sees
the natural gas market unfolding over the long-term to 2035, as reflected in its North American
Natural Gas Market Outlook, Fall 2012 release.
As the US experiences a shale gas
revolution, the question now is, where is
all this abundant natural gas going to go?
Rebecca Honeyfield and Gordon Pickering,
Navigant Consulting Inc., USA, suggest
three key demand areas.
LNG_MARAPR_2013_12-18.indd 13 25/03/2013 09:13
14 LNGINDUSTRY MAR/APR 2013
Navigant is recognised for having long-established and
widely confirmed assessments as to the abundance of shale
gas in North America. Its team has been involved in
extensive research and analysis on the commercial and
economic impacts of the abundance of supply even before
the wide-spread acknowledgement of it. This expertise has
been used to develop its long-term view of the natural gas
resource base, including the increasingly important
unconventional natural gas segment and its resulting impact
on production. Figure 1 represents shale growth in the US
continuing over the forecast term to 2035, more than
offsetting declines in conventional production over the
period.
Figure 2 demonstrates how increased supply has pushed
Henry Hub natural gas prices down to unsustainable levels
that have not been seen for a decade. In addition, it shows
projected annual average natural gas prices at Henry Hub,
highlighting the stabilisation of prices over the near to
mid-term and prices over the long-term reaching only
moderate levels by 2035.
There are a number of reasons why the US will head into
a period of more stabilised natural gas prices over the
long-term. This includes the anticipated growth of natural
gas demand from a number of different industries including
the industrial, LNG export, and electric generation sectors.
Over time, increased demand in these sectors will support a
balanced supply and demand structure that will provide a
market exhibiting long-term market sustainability without
the risk of price shock.
The new natural gas industry
The new natural gas industry, which is driven by shale
gas development, is not like the old natural gas industry.
Looking forward, as the supply profile of shale gas
continues to increase as a share of total supply, Navigant
sees the natural gas industry developing into something
very different than in the past. The industry is evolving
into something more akin to a manufacturing industry and
moving away from its historical roots as a high-risk industry
dependent upon finding resources in deep underground
locations that are subject to high levels of expenditures
on resource identification. In the new natural gas industry,
exploration becomes less of a factor as exploitation and
production related activities become the key activities of
the producing industry. As a result of the key technological
breakthrough of hydraulic-fracturing through horizontal
drilling, production related activities have transformed the
industry. Furthermore, the market is not expected to revert
back to its previous key fundamental structure by which
exploration and the risks associated with it drove much of
the volatility in the market. In many ways, the new natural
gas industry is about better managing North American
natural gas resources with an increased capability to achieve
balance between supply and demand.
Figure 3 shows US natural gas demand. Residential and
commercial sectors will experience a jump from 2012 to
2013 on recovery of load lost during the mild 2011/2012
winter, and will then stabilise and remain level to 2035.
While the natural gas vehicle (NGV) fuel sector is
expected to only increase from 0.1 billion ft
3
/d to
0.4 billion ft
3
/d over the outlook period, it is a wildcard that
represents great potential for the natural gas industry and
for the country in the future. However, it also poses
significant challenges, such as the need for extensive
infrastructure build-out in the face of a still very oil
dependent economy. Navigant continues its conservative
view towards NGV penetration, watching for developments
on both the infrastructure side and in the face of lower
domestic gasoline consumption on higher fuel efficiency
standards for traditional cars.
Figure 4 illustrates the previously mentioned three key
areas of demand growth: industrial demand recovery in the
near-term, the emergence of North American LNG exports in
the mid-term, and stable and moderate growth in the
gas-fired generation sector in the long-term.
In the near-term and early part of the mid-term, low
natural gas prices in the industrial sector will pull natural gas
demand and present an opportunity for gas market growth.
The correlation between historical annual average
HenryHub prices and industrial natural gas consumption can
be seen in Figure 5. Todays natural gas commodity prices,
as previously noted, are similar to those of 1997, when
industrial consumption was at a 20-year high. Navigants
North American Natural Gas Market Outlook, Fall 2012
shows incremental industrial gas consumption of
2 billion ft
3
/d by 2015 and 3.6 billion ft
3
/d over 2013 levels
Figure 2. Henry Hub outlook (source: Platts, Navigants North
American Natural Gas Market Outlook, Fall 2012).
Figure 1. US natural gas supply outlook (source: Navigants
North American Natural Gas Market Outlook, Fall 2012).
LNG_MARAPR_2013_12-18.indd 14 21/03/2013 12:22
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LNG_MARAPR_2013_12-18.indd 15 21/03/2013 12:22
16 LNGINDUSTRY MAR/APR 2013
by 2020. These levels would be a recovery to levels last
seen at the beginning of the decade.
Currently, there is a great deal of overseas interest in the
US on behalf of large industrial gas users, but these same
companies have some apprehension about how long natural
gas prices will remain at current low levels. The key question
for the industrial market is whether the timing of LNG export
projects will coincide with greenfield industrial facilities such
that natural gas prices in North America will approach the
same higher price levels in other countries. The answer
Navigant has come to is that the size of the US natural gas
resource appears to be very large and getting larger, yet still
the resource is in the very early stages of development, with
much more to be learned regarding the geology and
geoscience of todays new natural gas industry. Through
increased understanding of the resource over time, it is only
logical that this domestic resource will develop as an
increasingly core energy resource for North America over the
long run. Additionally, with a well-developed market
structure to support and continue to provide new
infrastructure as required, the company sees the
NorthAmerican market being able to serve both the
domestic industrial and global LNG export markets at price
levels that are attractive and that balance the needs of both
producers and buyers alike.
In the mid-term, Figure 6 illustrates the addition of North
American LNG exports, with a total potential of
6.8 billion ft
3
/d (US export levels of up to 4.8 billion ft
3
/d by
2020, and Canadian export levels reaching 2 billion ft
3
/d by
2019).
A number of factors have contributed to Navigants view
for LNG export levels. These include difficult regulatory
processes, uncertainty surrounding US financial and
commercial issues relating to large infrastructure facilities,
and global market considerations including supply
competition. Currently, many in the industry are following
the developments, or lack thereof, of the US Department of
Energy (DOE) as it reviews applications from 15 different
companies that have filed for export licenses that would
ship 23.71 billion ft
3
/d of LNG to countries with no existing
free-trade agreement (non-FTA) with the US.
3
The DOE has
yet to make a decision on which projects, if any, will clear
DOE approval hurdles. Currently, the only successful
application has been Chenieres Sabine Pass export project.
However, on 5 December 2012, the DOE released a study by
NERA on the macroeconomic impacts of LNG exports on the
US economy, which finds that for all LNG export scenarios
studied there is a net economic benefit to the US.
4
The DOE
has indicated that it will begin to act on the applications on a
case-by-case basis after the reply comment period ends at
the end of February 2013.
Aside from US domestic regulatory uncertainty, there are
also a number of other factors that Navigant believes will
ultimately limit the number of facilities built in the US. These
include the substantial capital requirements, commercial
contractual issues, global competition from existing LNG
exporters such as Qatar and Australia, and competition from
the potential development of global world shale resources.
Regardless of the volume of exports ultimately
approved by the DOE, the global market needs will
determine the actual level of US exports and capacity that is
built. Toward this thought, total 2011 global demand for LNG
was 32billion ft
3
/d.
5
The 23.71 billion ft
3
/d of non-FTA
country LNG export applications therefore represent 74% of
todays natural gas needs if all were approved. As Navigant
believes the ultimate export levels will be determined by the
future incremental market for LNG over current levels, it also
believes the global LNG market to be supplied from
NorthAmerica will be much less than the total application
volumes now filed and in the end are more likely to be in the
6 billion ft
3
/d. This is at odds with others who suggest the
market is much larger. While it does not agree with these
larger forecasts, Navigant views the outlook for global LNG
as strong, particularly in the Asia-Pacific markets, where a
gap between supply and demand is forecast to reach
37.3 billion ft
3
/d by 2030.
6
The company believes
NorthAmerica is well-positioned to capture a portion of this
market.
Looking back again at Figure 4, the largest growth in
natural gas demand in North America is expected to come
from the natural gas-fired electricity generation sector over
the longer term, with incremental demand increases of
12.5billion ft
3
/d by 2035 (compared to 2013 levels). In recent
years, natural gas-fired generation has seen strong growth
as a result of coal retirements and favourable natural gas
prices. In the near-term, growth from these sectors is
Figure 3. US natural gas demand outlook (source: Navigants
North American Natural Gas Market Outlook, Fall 2012).
Figure 4. US incremental natural gas demand from 2013
(levels by sector). (Source: Navigants North American Natural
Gas Market Outlook, Fall 2012.)
LNG_MARAPR_2013_12-18.indd 16 21/03/2013 12:22
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LNG_MARAPR_2013_12-18.indd 17 21/03/2013 12:22
18 LNGINDUSTRY MAR/APR 2013
expected to remain strong, but will become more moderate
in the longer term due to the eventual slowing in retirements
of coal-fired plants. The countrys coal-fired generation fleet is
ageing, and several older less efficient plants will be retiring
in the coming years providing the opportunity for a leaner,
more efficient generation fleet. During this time, Navigant
expects that natural gas prices will stabilise on natural gas
demand growth, and the resulting moderately higher natural
gas price levels, along with a more efficient coal generation
fleet, will serve to reduce some of the economic incentive to
switch from coal to gas-fired generation.
As indicated in the North American Natural Gas Market
Outlook, Fall 2012, growth in gas-fired generation over the
longer term will be primarily driven by environmental
regulation of coal plants and state renewable portfolio
standard (RPS) mandates. As electricity demand grows over
time, additional capacity will be needed to maintain
mandated capacity margins in various Independent System
Operator (ISO) control areas and generation pools. With
environmental standards limiting the amount of additional
coal-fired generation capacity, margins will increasingly be
met by additional gas-fired generation capacity.
Another source of growth in natural gas demand will
come from the state enacted RPS mandates. The District of
Columbia plus 29 states and two US territories have created
such mandates in favour of renewables increasingly making
up a growing share of the electric generation mix. Another
eight states and two other US territories have adopted
renewable portfolio goals. These goals and mandates will
require a higher level of electricity generation to come from
renewable resources in the coming years. While a majority of
the additional generation will come from wind and solar
power, both are intermittent resources that require additional
generation options for load balancing and grid reliability.
Most of the additional generation is likely to come from
peaking natural gas plants that can be quickly ramped-up and
down in order to balance the intermittent output from
renewable resources.
Where is the gas going to go?
In closing, the key question is where is all this abundant gas
going to go? As Navigant sees it, the growing natural gas
supply will end up in three key natural gas demand areas:
Into a revitalised industrial sector.
Into the new North American LNG exports market that is
in development, although first deliveries will not be until
after 2017.
To meet the increasing natural gas-fired generation needs
as a result of growth in the demand for power but also as
a result of continuing coal-to-gas switching.
These three demand areas will primarily support
NorthAmericas large, fungible, conventional and
unconventional resource base that, in the end, will serve to
stabilise natural gas prices over the long-term. Navigant
allows that regional differences to stable gas prices are also
set to exist for periods of time, especially in those areas
where new infrastructure is most required. In these regional
areas, significant price volatility could occur on a localised
basis that in turn could create challenges in parts of the
country. In sight of these regional areas where prices will still
be unstable, Navigants long-term view is valuable but still
only a starting point to begin to answer the significant
questions as to how the North American natural gas market
will evolve in the future. The North American Natural Gas
Market Outlook, Fall 2012 carefully analyses the market and
establishes a baseline to address further market
developments that could occur in the future. Furthermore, it
opens the door towards a process for more dialogue and a
better understanding of this large and vital market as a key
segment of the US economy and for the long-term energy
security of the country.
References
1. North American Natural Gas Outlook, Fall 2012: http://
www.navigant.com/insights/library/energy/2012/gas_
market_out_look/
2. Lippman Consulting Inc., October 2012.
3. Applications received by DOE/FE to export
domestically produced LNG from the lower-48 states
(as of 26 October 2012): http://www.fossil.energy.gov/
programs/gasregulation/reports/Long_Term_LNG_
Export_10-26-12.pdf
4. http://www.fe.doe.gov/programs/gasregulation/
LNGStudy.html
5. BP Statistical Review of World Energy, 2012.
6. BP Energy Outlook to 2030, 2012.
Figure 5. Henry Hub correlation with industrial natural gas
consumption (1997 2008). (Source: Navigant, EIA.)
Figure 6. North American LNG export outlook (source:
Navigants North American Natural Gas Market Outlook, Fall 2012).
LNG_MARAPR_2013_12-18.indd 18 21/03/2013 12:22
MAR/APR 2013 LNGINDUSTRY 19
R
ecent technological advances in horizontal
drilling and fracturing have made the
extraction of shale gas possible and
the resulting boost in domestic US natural gas
production has suppressed natural gas prices to a
level not seen in over a decade. The combination
of increased reserves and low natural gas prices
has piqued interest in the export of natural gas in
the form of LNG to expanding worldwide markets.
While the development of new export facilities
are both capital intensive and can take several
years to permit and construct, the several existing
US LNG import facilities that are currently sitting
idle provide an ideal platform to commercialise
investment since they already include much of the
technology also necessary for LNG export, such as
storage and marine facilities. This article discusses
key factors that owners of existing LNG import
facilities must consider when converting to world
class LNG export facilities.
Roberto Ruiperez Vara, PE, PMP,
and Phil J. Suter,
CH-IV International, USA,
look at the trending
market in the US
for bidirectional
LNG plants.
LNG_MARAPR_2013_19-25.indd 19 21/03/2013 12:35
20 LNGINDUSTRY MAR/APR 2013
BOG handling and LNG loading
LNG storage tank pressure
Typically, full containment LNG tanks at import facilities
operate between 2 to 3.5 psig (138 to 241 mbarg). LNG export
facilities operate their LNG tanks at 0.5 to 1.5 psig (35 to
103mbarg) to minimise boil-off gases (BOG) during LNG
carrier loading operations. Depending on the design, a typical
LNG carriers operating pressure can vary from 0.7 to 2.2 psig
(50 to 150 mbarg), which is considerably lower than typical
import facility full containment tank operating pressures,
hence the need for storing LNG at lower pressures.
LNG production
Consideration should be given to flash gas, which is BOG
predominantly composed of methane and nitrogen generated
during pressure let down prior to the introduction of the
LNG into the storage tanks. Liquefaction facilities that have
all electric driven refrigerant compressors and do not have
on-site power generation can have difficulties in handling
flash gas. Depending on the nitrogen content of the feed gas
composition, if the flash gas is compressed and re-injected
into the feed stream to the LNG liquefaction train, nitrogen
content could build up to unwanted levels.
Liquefaction trains can produce LNG at different
temperatures. When LNG is produced at a sub-cooled
temperature, it results in a lower production rate due to
limitations in refrigeration capabilities. However, sub-cooled
LNG reduces the amount of BOG generated once the LNG
reaches the storage tanks.
LNG carrier loading
During LNG loading operations, the LNG carrier will return
displaced vapours to the LNG facility. Depending on the
length of the existing vapour line to the storage tanks, it may
be necessary to install vapour return blower(s) at the LNG
loading area.
If the LNG carrier arrives at the facility from a dry dock, it
will need to be cooled down. During the approximate 12hour
cool down process, a mixture of predominantly inert gas and
methane will form and will need to be disposed to a low
pressure flare or vent until an adequate composition is
achieved. Gassing-in the LNG carrier may be needed if an inert
gas generator has been used during dry dock operations. In
this case, inert gas could contain concentrations of CO
2
up to
15% or more, which will freeze at temperatures lower than
-108 F (-78 C).
In-tank pumps, columns and discharge
piping
If needed, it is important to verify that new in-tank LNG
sendout pumps can be installed in the existing tank columns;
maximum LNG carrier loading rates may be limited by the size
of pump that can be installed in the existing pump columns.
The new pumps may need a higher total developed head,
depending on the distance between the storage tanks and the
loading platform. A general rule of thumb is that LNG needs
to be delivered to the LNG carrier manifold at approximately
30psig (2 barg).
Table 1 shows the difference between in-tank pump
sendout rate for typical import and export facilities.
LNG storage tank vacuum breakers
(vacuum safety valves) design
Vacuum breakers installed on an LNG storage tank protect
against under-pressure. The design should take into account
the following factors acting simultaneously:
Rise in barometric pressure.
Maximum LNG withdrawing rate.
Maximum BOG withdrawing rate.
Collapsing of vapour space due to introduction of
sub-cooled LNG into the tank.
As previously discussed, LNG withdrawal (sendout) rate
from an export facility is considerably higher than an import
facility. This change in withdrawal rate is a significant factor
and should be analysed to verify that the vacuum breakers are
properly designed for a change in operation for the tank.
Flaring
A flare system provides safe disposal of hydrocarbon vapour
and liquid streams that result from startup activities or process
upset conditions. It is common to segregate wet, heavy
hydrocarbons and dry, light hydrocarbons so that hydrate
formation, freezing or condensation does not block piping
or equipment. LNG import facilities typically have a single
dry flare or just a vent and would therefore need to install
additional flares during conversion to an export facility.
In a conventional baseload LNG export facility comprising
pre-treatment, heavy hydrocarbon removal, fractionation and
liquefaction, four separate flare systems need to be provided:
Warm flare (also known as wet flare) this flare is
typically designed to handle any wet hydrocarbons from
pre-treatment.
Cold flare (also known as dry flare) this is typically
designed to handle any dry hydrocarbons from
liquefaction. It also typically determines the height of the
flare stack when warm and cold flares are combined into a
common derrick structure.
Low pressure flare (also known as dock flare) this is
typically designed to dispose BOG or other low pressure
gases from gassing-in or cooling down the LNG carrier.
Incinerator (also known as thermal oxidiser) this system
is typically designed to dispose of acid gases from the
pre-treatment process.
Table 1. Import/export facility LNG pump sendout rate
comparison
Facility type Pump sendout rate (m
3
/hr)
1
Import/regasification
(2 billion ft
3
/d of natural gas
sendout to pipeline)
3750
Export/liquefaction (LNG loading
to LNG carrier)
12 000
1
Total flow rate from at least two LNG storage tanks
LNG_MARAPR_2013_19-25.indd 20 21/03/2013 12:35
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22 LNGINDUSTRY MAR/APR 2013
The height of the flare stack is generally based on the
radiant heat intensity generated by the flame. The maximum
radiation level at grade, where emergency actions lasting
several minutes may be required by personnel without
shielding but with appropriate clothing, should not exceed
1500 BTU/hr-ft
2
(API 521).
Due to economics, the traditional choice has been
elevated flares. An elevated flare designed to handle a
blocked-in condition on the outlet of a main refrigerant
compressor in a 4.5 million tpy liquefaction train would be
more than 400 ft (120 m) in height and relatively separated
from the LNG facility. However, due to height restrictions, as
well as environmental and social impacts, flare designs will
have to be innovative to reduce controlling cases for flare
sizing and thermal radiation. Some of the strategies that could
be considered in the facility design include the following.
High integrity pressure protection system
(HIPPS)
HIPPS is widely used in chemical plants and oil refineries. In
LNG facilities, it is often used to protect the main natural gas
sendout pipeline. HIPPS is a safety instrumented system (SIS)
and its primary purpose is to mitigate potential overpressure
scenarios. For example, HIPPS can be implemented in the
feed gas compressors discharge or refrigerant compressors
discharge to eliminate large load releases to the flare.
Passive fire protection for equipment
In general, it is recommended to install passive fire protection
(such as fire rated insulation for thermal protection or a
properly designed firewall or radiant heat shields) in vessels
located in congested process areas that contain a flammable
or combustible liquid at high liquid level. Alternatively, they
may be protected by a fixed water spray system, although
active mitigation measures have not generally been
acceptable as a mitigation measure for siting purposes to
the Federal Energy Regulatory Commission (FERC) and the
Department of Transportation (DOT). API 521 allows credit for
insulation on equipment that reduces the heat absorption and
therefore the load relief to the flare during the event of a fire.
Propane refrigerant storage tanks can be mounded (covered
with earth) as another effective method of limiting heat input.
Minimise blowdown scenarios
Although depressurising equipment during a fire event is not
mandatory by code, it is recommended and is a mitigation
tool against boiling liquid expanding vapour explosions
(BLEVE). This is also a way of reducing a jet fire time period
and the loss of containment in the event of a compressor
seal failure. In order to minimise coincident blowdown loads,
depressurisation should be done by zones.
Marine jetty operations:
loading and unloading
capabilities
Depending on the current design, it may be necessary to
install strainers, check valves and additional isolation valves
to perform warm and cold ESD tests at the LNG arms
headers while the transfer lines are pressurised. The existing
LNG transfer lines can be used as a means to load the LNG
from liquefaction trains to the storage tanks, and therefore
they will be pressurised at all times. The internals of the
check valves installed in existing transfer pipelines could be
removed, or new defeatable check valves could be installed
to allow bidirectional flow. In addition, even though most
LNG carriers are equipped with bidirectional conical strainers
at the manifolds, it is expected that the LNG export facility
will provide a clean cargo to the LNG carrier and therefore
additional strainers may be necessary.
LNG and refrigerants in liquid
form troughing
As required by 49 CFR Part 193, LNG, flammable refrigerant
or flammable liquids must be contained in the event of a spill.
Existing troughs and impoundment areas can be used to route
and contain refrigerant and natural gas liquid spills from the
liquefaction facilities. In most cases,
the size of the impoundment area is
sufficient to contain a 10 minute spill
resulting from a guillotine rupture
of the main loading/unloading
LNG transfer pipeline operating at
maximum flow. Therefore, in order
to ensure compliance with code
requirements, if the LNG transfer rate
within the facility increases additional
troughs and impoundment areas may
be needed.
LNG piping
pressure protection
Liquefaction processes produce LNG
at pressures that vary, depending
on the technology selected and the
gas composition; 700 to 1000 psig
(48 to 69 barg) is typical. The LNG
liquefaction train rundown headers
will likely be connected to existing
LNG transfer piping, which is typically
rated at lower pressure. Therefore, an
Figure 1. Rendering design for the Freeport LNG export project located in Quintana Island,
Texas, USA (courtesy of Freeport LNG).
LNG_MARAPR_2013_19-25.indd 22 21/03/2013 12:35
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Delivering a clean-burning,
safe fuel alternative to diesel
for her future and yours
LNG_MARAPR_2013_19-25.indd 23 21/03/2013 12:35
24 LNGINDUSTRY MAR/APR 2013
adequate overpressure protection system would need to be
installed.
Electrical consumption
Liquefaction processes require large amounts of electrical
power. In traditional baseload LNG export facilities, power
is self-generated by gas turbine driven generators (GTG),
where the number of GTGs is selected on an n+1 basis for high
reliability. Contracting power with a reliable supplier instead of
self-generating could potentially simplify permitting processes
and reduce capital costs.
Table 2 provides a comparison of typical electrical
consumption.
Guidelines about modeling
vapour dispersion
US LNG facilities must comply with the siting requirements
of the Department of Transportations (DOT) regulations
under 49 CFR Part 193. A hazard analysis that includes
site-specific modeling is required to calculate thermal and
vapour exclusion zone distances, which are established in
Parts193.2057 and 193.2059.
An exclusion zone is an area that could be exposed to a
specified level of thermal radiation or flammable vapour in the
event of a release of flammable substances. The requirements
state that an operator or government authority must exercise
control over the activities that can occur within an exclusion
zone. Therefore, the thermal radiation and vapour dispersion
exclusion zones must stay within a facilitys property or fall
within a property under control of the owner or a government
authority.
In 2010, the US DOT PHMSA issued written interpretations
stating that the effects of jetting and flashing must be
considered in order to comply with Part 193.2059 and that
source term models must have a credible scientific basis and
must not ignore phenomena that can influence the discharge,
vaporisation and conveyance of LNG.
Current permit applications in the US must use DOT
approved model(s) to evaluate the hazards in a site-specific
hazard analysis. Det Norske Veritass (DNV) Process Hazard
Analysis Software Tool Unified Dispersion Model
(PHAST) and GexCons Flame Acceleration Simulator
(FLACS) Computational Fluid Dynamics (CFD) Model were
approved by DOT PHMSA in 2011 as alternate dispersion
models.
If initial modeling indicates it is difficult to contain vapour
dispersion distances within the facility property boundary,
passive mitigation measures such as vapour fences can be
used. However, use of these mitigation measures requires the
use of a model that can take into account the physical layout
of a site and site geometries. If required, the following design
philosophies and strategies can help reduce dispersion
distances to site the liquefaction facilities:
Develop an equipment layout that minimises the length
of piping for major refrigerant and LNG lines. Since the
exclusion analysis is based on a design spill calculated
from a frequency of occurrence of typical pipeline failures,
this philosophy will reduce the failure rate for a given
pipeline and therefore reduce the spill size for a given
failure. Typical failure rates of long lengths of piping could
require an analysis that assumes a full guillotine failure
resulting in a large spill scenario, whereas smaller length
pipelines may only require smaller spill scenarios.
Develop an equipment layout that locates potential spill
locations of major process pipelines away from property
boundaries. This philosophy will help keep the calculated
hazard distances on-site.
Minimise the storage inventory of refrigerants. If high
purity refrigerants are readily available it may not be
necessary to maintain large quantities on site. Reducing
the amount of refrigerants stored to a minimum would
reduce the hazard calculations in the event of a failure
of the storage container. Daily make-up of refrigerants
is needed because a very small amount is continuously
being lost in compressor seals, valve packing, etc.
Designing around daily make-up rates and not overall
refrigerant inventory would minimise the space needed to
site refrigerant storage.
Some liquefaction technologies may allow you to
choose among different refrigerants. If possible, choose
refrigerants with smaller MESG (maximum experimental
safe gap) value and MIC (minimum igniting current) ratio
(e.g. ethane vs. ethylene).
Minimise residence time of refrigerant accumulators to
minimise overall refrigerant inventory in the train.
Sizing refrigerant storage
tanks and transfer pumps
Initial liquefaction train inventories could be filled by trucking
in the refrigerants directly from a petrochemical facility. A plan
should be in place to perform a full charge within 24hours;
therefore, logistics must be arranged in advance. As previously
mentioned, designing refrigerant storage for make-up rates
only will significantly reduce the total amount of hydrocarbons
onsite. Although make-up is performed on an as needed basis,
it is usually once a day for a short period of time.
Future considerations
As recently as just a few years ago, future energy projections
determined that LNG imports would play a role in the US
energy markets for years to come. At
that time, it was not predicted that
shale gas production would become
such a significant part of the natural
gas supply mix and that the market
would lean towards LNG exports.
In order to mitigate against future
potential uncertainties it is beneficial
to maintain vaporisation capabilities in
existing facilities and consider some
level of LNG import and regasification
capacity in future LNG facilities.
Table 2. Import/export facility power consumption comparison
LNG import facility
using forced draft
ambient air vaporisers
(2 billion ft
3
/d)
All electric air-cooled
LNG export facility
(4.5 million tpy)
2
Gas turbine driven
air-cooled LNG
export facility
(4.5 million tpy)
2
Power consumption
(MW)
32 215 55
2
Without feed gas compressor
LNG_MARAPR_2013_19-25.indd 24 21/03/2013 12:35
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LNG_MARAPR_2013_19-25.indd 25 21/03/2013 12:35
26 LNGINDUSTRY MAR/APR 2013
John A. Sheffield,
John M. Campbell | PetroSkills,
presents the findings from
a recent global survey on
commercial and technical
trends in the LNG industry.
Survey
LNG Global
LNG_MARAPR_2013_26-31.indd 26 22/03/2013 10:15
MAR/APR 2013 LNGINDUSTRY 27
A
s worldwide LNG capacity now exceeds
300 million tpy and on the eve of LNG 17 it seems
appropriate to reflect on what are perceived to be
some of the major technical and commercial issues facing
the LNG industry. To this end, John M. Campbell | PetroSkills
commissioned a survey to solicit views on some of these key
issues, the results of which are summarised in the following
article.
When the survey was closed, John M. Campbell had
nearly 170 responses from the LNG community around the
world, indicating great interest both in the producing and
consuming countries (Figure 1). The survey looked at both
commercial and technical issues and focused on new
developments and the major challenges facing the industry.
Market growth and pricing
The first question addressed LNG market growth. Following
a brief slow-down in 2009, the volume of LNG trade has
increased by 10%/year to be 245 million tpy in 2011. This was
partly driven by events such as the Japanese tsunami and
the consequent closure of most of Japans nuclear power
generation industry. But there is a strong level of underlying
growth, particularly in developing countries. The responses
showed an optimistic expectation that growth rate would be
sustained at 5 7%, suggesting that the volume of LNG trade
in 2020 would be around 450 million tpy (Figure 2).
Since the early days of the LNG industry, LNG prices in
Asia have been linked to the price of crude oil and LNG supply
contracts have been for 20 years or more. In contrast, in the
LNG_MARAPR_2013_26-31.indd 27 22/03/2013 10:15
28 LNGINDUSTRY MAR/APR 2013
US and parts of Europe, gas is priced
on a supply and demand basis and
contracts are for capacity at an import
terminal to give access to the market,
rather than for a specific long-term
contract with a consumer. However,
there is now pressure for change
because the gap between Henry Hub
and Japanese LNG prices has widened.
The gap has been as much as
US$ 12/million Btu. Consequently,
there is increasing pressure from Japan
and South Korea for changes to the
established pricing and contract
mechanisms.
However, the views on pricing
were more disparate. The questions
asked what changes were anticipated.
A majority believe that there will be
more short-term contracts based on
negotiated gas prices and it is clear
that only a few responders believe
that oil-related LNG pricing would continue to be the
mainstay of the industry (Figure 3). There is clear anticipation
that an Asian hub pricing or price based more directly to cost
of production might prevail.
It has been pointed out that there are clear structural
differences between the physical reality of Henry Hub and the
long-term needs of the gas markets in the Far East. There is
also an expectation that in time the prices will balance in the
medium term and the International Energy Agency (IEA) is
forecasting that US gas prices will trend towards
US$ 5 7/million Btu, thus narrowing the current differential
with LNG trades in Asia. Others point out that the producers
require that prices should reflect capital expenditure (CAPEX),
but the buyers view would be the opposite and that CAPEX
must align with achievable prices.
Exports from the US
This leads neatly to the interesting issue of LNG exports
from the US. In the past few years new shale gas reserves in
several regions of the country have been developed. These
discoveries have made most US LNG terminals redundant
for import. The owners of these terminals have turned their
minds to exporting this low cost gas by adding liquefaction
facilities to the terminals and exporting LNG. This is a low
CAPEX option since approximately 50% of the value is
already invested in the marine, storage and pipeline facilities.
Work has already started on one of these, the
Cheniere-owned Sabine Pass facility in Louisiana. The
company is proposing to build two trains with a capacity of
9million tpy to come into production in 2015 with an option
for two more trains in the future.
The question posed was: How much LNG will be
exported from the USA in 10 years time? The view is quite
clearly that this will not amount to a very significant volume,
with most people comfortable with an estimate of
2040million tpy (Figure 4).
It is clear that there is still a lot of political and social
turmoil in the US over the question of exporting gas. To put
this into context, 40 million tpy of LNG represents about 8%
Figure 1. Survey responses.
Figure 2. LNG trade in 2020.
Figure 3. LNG pricing.
LNG_MARAPR_2013_26-31.indd 28 22/03/2013 10:15
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30 LNGINDUSTRY MAR/APR 2013
of US gas consumption so this would influence prices, and
given that prices are forecast to rise towards
US$ 7/million Btu it is unlikely that all of the envisaged export
facilities will materialise. A recent NERA report showed the
positive economic benefits of LNG exports to the US
economy as a whole, but this report has precipitated a
vigorous campaign by many opposed to the idea of
unrestricted exports of LNG from the US.
Short-term trading
The responses to the pricing question clearly showed a
leaning towards shorter term contracts, not necessarily
short-term trades. So a further question was asked
specifically about short-term trades, which are currently about
60 million tpy, accounting for some 25% of all LNG trades
(mostly due to the additional LNG being bought by Japan,
which in 2012 amounted to approximately 15 million t). The
responses indicated that most believe these short-term trade
levels will continue and even grow towards 30% of total LNG
trades. This mode of trading could well be favoured by those
major producers operating a portfolio business, but will be
difficult for the smaller, newer entrants, who would find it
difficult to support the investment without more traditional
long-term contracts.
New developments for the next
decade
The final commercial topic links to the technical discussions
as it looked at what would be the most significant factors in
the development of the LNG industry over the next 10years.
Nearly half of the respondents cited the development of
floating LNG (FLNG) facilities as a major factor (Figure 5).
FSRUs (floating storage and regasification units) are now
being deployed in many locations around the world,
including countries such as Indonesia and Malaysia which
have traditionally been exporters. However, many more of
the respondents believe that FLNG facilities will be a more
significant game changer now that there are three FLNG
units under construction. A significant proportion of the
respondents believe that development of new areas such
as East Africa and the Eastern Mediterranean will be a major
factor in FLNG advances.
Perhaps surprisingly, a large number pointed to the use of
LNG as fuel for marine and land transport as a major factor in
the LNG industry. Certainly the introduction of emission
control areas (ECAs) in many ports is encouraging the
development of LNG as a marine fuel. Use of LNG as a fuel for
heavy trucks is being supported by such disparate entities as
Shell and T. Boone Pickens.
What is clear is that there is great scope for technology
innovation to develop new business opportunities in the LNG
industry, although one respondent noted that shale gas will
kill-off LNG!
Potential developments in
onshore LNG facilities
One of the big innovations in the last decade has been the
development of the six mega LNG trains in Qatar. These
7.8 million tpy trains have made Qatar the largest exporting
country with 77 million tpy production capacity. The question
posed was to establish whether people view the large LNG
trains as the future direction for the LNG business. The result
was a resounding maybe (Figure 6), with many making the
point that these large capacity trains are only feasible with
a large gas reserve. But more critically, large trains require
access to a large and liquid gas market and these large
Qatari trains were focused on the US before the growth of
shale gas eliminated the need for LNG imports. The point
was made that cost effectiveness of the train should prevail,
and that the large trains are not necessarily cheaper. There
is some evidence that smaller trains in the 3 5 million tpy
range are more cost effective and can more easily secure firm
customers to underpin the initial investment.
The issues that concern developers of onshore facilities
are numerous but the survey requested a view on four major
issues. The results showed that reducing capital cost and
improving the schedule are considered to be the most
important factors, with safety and improving efficiency also
being ranked as important. Several people noted that
improving construction productivity levels is most important
and in recent years there have been several instances of
delayed start-ups due to lower than anticipated productivity
levels. Departmental and supplier interface management was
another issue raised as a concern; as was the overall
development time for some of the projects. LNG quality was
also mentioned as a key concern, presumably as LNG may
Figure 4. USA exports.
Figure 5. New developments.
LNG_MARAPR_2013_26-31.indd 30 22/03/2013 10:15
MAR/APR 2013 LNGINDUSTRY 31
now have to be sold into several different market places with
different quality requirements.
Offshore LNG developments
The decision by Shell and Petronas to proceed with FLNG
projects has brought offshore LNG developments to the fore
and there is now a strong body of opinion that there will be
several more projects based on this concept. However, it is
clear that there are still some major concerns. Safety was
highlighted as the main issue, due to the more congested
and compact layout, but also because the facility will be
more remote for support services. LNG transfer and reliability
are seen as important factors, whereas efficiency and
driver selection were viewed as less critical. LNG transfer is
generally accepted to be proven for side-by-side transfer in
relatively benign sea conditions. However, it is clear that with
the current state of technology and marine procedure there
will be times when off-loading is not possible. This might well
be one of the challenges that is best addressed commercially,
which is why a larger operator who can supply from a
portfolio may be better suited to utilise this technology.
So when asked about the issues with FLNG the main
concern was identified as the high cost (Figure 7). This is an
interesting conclusion because it has long been proclaimed
that FLNG offered a potentially lower cost option, but it is
clear from the published data that these early adopters are
relatively high cost. One can expect costs to come down as
experience is gained, and certainly in the case of Prelude, it is
not just an LNG facility but also processes significant
quantities of LPG and condensate. The risk as perceived by
the buyers was rated as a low factor.
Potential for small scale LNG
developments
The final part of the survey dealt with the development of
small scale LNG for monetising stranded gas reserves and
producing LNG as a transportation fuel. It is clear that many
support the concept of the development of small scale LNG
facilities for transportation fuel. The gas may come from
gas reserves but could also come from pipeline gas and
it is recognised that small scale plants have already been
established in Norway, Australia, China and the US.
The clear view is that LNG could be a realistic substitute
for diesel for land transportation and with no tax regime, LNG
is a cheaper option. In the marine world, LNG is already
making great strides and the adoption of ECAs will encourage
this, especially with new-build vessels.
There are now several coastal ferries and offshore rig
service vessels operating off the coast of Norway and the idea
is being taken up in the Baltic. Plans are being developed for
LNG bunkering in Singapore, the worlds largest bunkering
port.
Land transportation
Looking specifically at land based transportation, long
distance haulage is seen to be the biggest opportunity for
further development. It is clear that this is already happening
in the US, with several transportation companies announcing
the addition of LNG-fuelled trucks to their fleets. The
exploitation of LNG as a fuel for local transportation (e.g. bus,
taxi and refuse vehicle fleets) is equally seen as a potential
growth area and there are many cities around the world
where this would clearly be of great benefit if the perception
of potential risks by the public can be overcome.
Environmental issues
Finally, the survey looked at the main environmental issues
that the industry faces and it is clear that the disposal of acid
gases tops this list. Several projects have now implemented
the disposal of the acid gas components removed from the
feed gas, yet no project has addressed CO
2
released from
the fuel consumption. The cost of acid gas removal and
sequestration is high, so that the cost of the feed gas must
be low to compensate and allow the project to compete
economically.
An exciting future for LNG
It is clear from the interest shown in the survey that whilst
there are many problems to be addressed, there is a large and
enthusiastic community of creative developers who will rise
to the challenge and ensure that the LNG business continues
to grow and provide a valuable component of the worlds
energy mix. The main challenge will be to provide LNG to the
developing markets at an affordable cost, so the pressure to
reduce the capital expenditure and shorten schedules will
continue to be the main challenges facing the industry.
Note
If you are interested in participating in the survey, visit:
www.jmcampbell.com/lngsurvey
Figure 7. FLNG issues.
Figure 6. Large LNG trains.
LNG_MARAPR_2013_26-31.indd 31 22/03/2013 10:15
Simon Rainey Q.C., Quadrant Chambers, UK, attempts
to define the new generation of FLNG facilities.

IS IT A
PERMANENT
INSTALLATION?
IS IT A SHIP?
LNG_MARAPR_2013_32-36.indd 32 21/03/2013 12:47
I
n December 2012, the US Department of Energy (DOE)
released its long-awaited second independent study on the
impact of increased exports of LNG to foreign countries. This
predicted strong economic benefits for the US from such exports.
The wider development of LNG resources, which the US decision
confirms in the US context, will bring with it further technological
advances. A new generation of floating LNG (FLNG) facilities will
join the existing range of moveable floating objects already in
current use in offshore energy exploration and production.
A recent example is the Shell FLNG facility Prelude, which will
operate in Australia. This is a pioneering FLNG facility and the
largest floating structure yet built (488 m long; 74 m wide;
600 000 t laden, to be permanently moored in 250 m deep
water at location for 25 years), which has just started building in
SouthKorea. Similarly, Keppel Shipyard recently entered into an
agreement with Golar LNG for the conversion of three LNG
carriers into FLNG units.
The definitional problem
The question that arises in relation to these mammoth new
floating facilities is under which maritime legal regime they will
fall. Will they be treated as ships, because they float and can
be and are (sometimes) navigated across the seas to their site
of operation either under their own power or under tow? Or are
they better viewed as permanent offshore installations, because
of their fixed connection to the seabed and the fact that they are
permanently on location, for all practical purposes?
The answer to these questions has not always been an easy
one to predict even with existing FPSOs, FSUs, jack-ups and
semi-subs. Much will depend upon the context. In some cases,
the context may be one that has to be resolved by consideration
of the applicable local law, for example in relation to operating or
health and safety standards that are likely to depend upon the
law of the place of registration of the unit (if it is registered) or the
place of operation (depending on territorial application). In others,
LNG_MARAPR_2013_32-36.indd 33 25/03/2013 09:14
34 LNGINDUSTRY MAR/APR 2013
the context may be one where an international conventional
regime for ships exists (such as for limitation of liability under the
1976 Limitation of Liability Convention or for oil pollution under
the Civil Liability and the International Oil Pollution Fund
Conventions of 1992), where the questions are whether the unit
can be described as the sort of ship dealt with in the convention
in question, and whether the applicable local law giving effect to
the convention has adopted a different definition, wider or
narrower.
Unfortunately, there is no single international conventional
model for offshore units that lays down a common international
regime, although there have been unsuccessful attempts to
devise one. Proposals for a new international convention on the
regime applicable to offshore mobile craft have so far not fared
well. The Comit Maritime Internationale formulated drafts
seeking to apply established legal concepts specific to maritime
law to the new offshore industry. These were presented to the
IMO as long ago as 1998, but there has been very little
international interest or support. Technological advances and the
birth of semi-permanent floating facilities, which are only set to
grow in size and complexity as countries follow the US and
Australian lead in developing their LNG resources, make the
problem of defining how these structures are to be regarded as
increasingly important.
An example: limitation of
liability
Take the example of one of the most pressing issues: limitation
of liability. Test the position in regard to the 1976 Convention and
the applicability of limitation of liability to an FLNG facility like the
Prelude.
Under the Convention, a shipowner can limit liability in
respect of liability for the specific claims set out in Article 2 of the
Convention. This is widely drawn and the listed claims will usually
cover those that arise in a typical maritime casualty situation that
might affect an FLNG, extending to liability for pollution, including
liability for oil pollution, provided that that liability is not one that
is covered under the 1992 Conventions. However, to be able to
limit liability, the head of claim must be one that arises in respect
of the operation of a ship.
Seagoing and vessel, etc.
Ship is defined as any seagoing ship by Article 15. However,
Article 15(5) excludes offshore units, which it defines as
platforms constructed for the purpose of exploring or exploiting
the natural resources of the seabed or the subsoil. An FSU,
usually simply a converted tanker used to store oil received from
a platform or FPSO, will probably not fall within the exclusion,
although the question remains whether it is a seagoing ship.
However, an FPSO is usually much closer to a floating platform
constructed for exploration or exploitation. Once moored on
location, it is usually in place either permanently or
semi-permanently. However, some may be designed to
disconnect from their risers, e.g. in adverse weather or for
operation on adjacent fields. It is likely that FPSOs, and therefore
the new generation of FLNGs with them, are excluded from the
operation of the 1976 Convention.
However, this raises the question of how the Convention has
been enacted locally. Different countries apply the 1976
Convention differently. The UK enacts the 1976 Convention but
without the Article 15(5) offshore unit exclusion. The Convention
as applied in the UK extends without restriction to seagoing
ships. While the term seagoing is not defined, the term ship is
defined as [including] every description of vessel used in
navigation.
Seagoing means really and substantially able to go to and
remain at sea (Ex parte Ferguson (1871)) and is unlikely to cause
any difficulty in the context of the modern offshore unit, whatever
its type, since it is built for this purpose. The real question is: what
is meant by vessel used in navigation?
The used in navigation test
Vessel simply means anything that is built to float and carry
something while afloat and poses no problem: an FLNG floats
and carries product. But the term used in navigation has proved
more tricky. The best modern guidance in the context of offshore
units is to be found in the English Court of Appeals decision in
PerksvClark (2001). The case concerned an appeal by the Inland
Revenue against an assessment that workers on two Santa Fe
jack-up drilling rigs were liable to pay tax as seafarers, being
employed upon ships. The Court held that the rigs were ships
although they had no motive power, did not look like or have any
of the characteristics of a typical ship or hull form shape, were
designed to explore and exploit seabed resources rather than
regularly to perform seagoing marine transits and spent most of
their working life in drilling or production on field.
The Court set out a useful summary of the earlier English
cases falling on either side of the line and held that the courts had
rejected a test of navigation being the primary purpose of the
object or structure (as contended for by the Revenue in order to
narrow the category of objects caught by the term ship). On the
one hand, it noted that cases in which the courts had held the
object to be a ship had been ones where the navigation was a
feature of the use of the object, but where its mobility was
purely incidental to its main function, viz. an offshore industry
floating accommodation unit in Addison v. Denholm Ship
Management (1997) and a fixed operation dredger in The Von
Rocks (1998). On the other hand, it categorised the cases where
the object had failed to be recognised as a ship as being ones in
which navigation, in the sense of moving across the seas, was
minimal or non-existent, such as a floating dock crane moved
very rarely and unstable under way: Merchants Marine v. North of
England P. & I. (1926). The Courts conclusion was as follows: so
long as navigation is a significant part of the function of the
structure in question, the mere fact that it is incidental to some
more specialised function, such as dredging or the provision of
accommodation, does not take it outside the definition. There
may be an issue of degree as to the significance of the navigation
on the facts of a particular case, but that [...] is a question for the
fact-finding tribunal. [...] navigation does not necessarily connote
anything more than movement across water; the function of
conveying persons and cargo from place to place [...] is not an
essential characteristic.
Semi-subs, MODUs and jack-ups
The answer will usually therefore be straightforward for regularly
moved floating objects such as semi-subs, MODUs and jack-ups,
voyaging by sea from site to site as part of ordinary operation:
self-propulsion and ability to steer are not essential. The
decisions in other offshore cases, such as Addison, relating to an
offshore worker accommodation unit, and Global Marine v. Triton
Holdings (1999), in relation to a semi-submersible drilling rig
LNG_MARAPR_2013_32-36.indd 34 21/03/2013 12:48
LNG_MARAPR_2013_32-36.indd 35 21/03/2013 12:48
that the Scottish Court of Session held to be a ship, support
the approach of holding such objects to be ships.
FSUs/FPSOs and beyond
FSUs and for FPSOs designed for disconnection and movement
will probably also fall within the term ship, since their marine
purpose, while only a minor part of their day-to-day role, cannot
be said to be insignificant. In The Cossack Pioneer (2005), an
Australian court held an FPSO designed to disconnect from its
riser and to navigate off-site in bad weather to be a ship used in
navigation by water under equivalent legislation.
More permanently fixed and connected objects such as
the Shell FLNG Prelude and other fixed FPSOs are much less
likely to qualify as a ship and will probably be regarded
simply as species of permanent floating offshore installations.
Such a facility, while much more complex and sophisticated
and capable in principle of moving at sea, is in kind closer on
the Perks v Clark test to the floating crane held not to be a
ship but simply a floating platform in Merchants Marine in
1926 (undoubtedly capable of being moved, but []
obviously so unseaworthy that it can only be moved short
distances [... and] moved very occasionally), and the
dismasted ship-of-the-line permanently anchored off the
coast as a coaling station held not to be a ship (although still
registered as one on the register of shipping) but a mere
chattel, a coal-hulk in European Royal Mail v P. & O. (1866).
Limitation of liability is but one example. Pollution and
hazardous and noxious substances are obviously other
pressing concerns.
The future picture
LNG development raises new challenges not just
technologically but also legally both at the national and
international level. The need for a uniform standard as
a minimum in the context of application of international
conventions applicable to ships, perceived in the 1990s
by the CMI, will become more pressing. Cases like the
criticised Slops decision of the Greek Supreme Court where
a vessel, permanently anchored as a storage unit with
propeller removed and engine dismantled, was held to be
a ship capable of carrying bulk oil for the purposes of
compensation under CLC 1992, highlight the need for an
international standard for the new generation of LNG floating
offshore unit.
Some pointers to the solution can be found in the field
of admiralty jurisdiction and the 1952 Brussels Convention
on the Arrest of Ships. Here, some common law jurisdictions
such as Canada, Australia and Singapore include different
definitions of floating offshore units within the concept of
ship. But there is no single approach between countries,
even in this limited context. This means that the solution will
have to be worked out on a case by case basis, depending
on the approach of local courts or of applicable local
legislation with, almost inevitably, inconsistent results. If the
FLNG is a permanent installation situated for its working life
within a single jurisdiction, this may narrow the focus.
However, if it is being moved to, on or from site then more
difficult questions arise (as the CMI percipiently foresaw as
far back as 1998).
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MAR/APR 2013 LNGINDUSTRY 37
T
he floating LNG (FLNG) sector currently has
two main types of liquefaction technology
proposed: mixed refrigerant cycles and
nitrogen cycles. Those proposing mixed refrigerant
cycles often do so based on onshore LNG experience
and focus on maximising the liquefaction cycle
efficiency. Those proposing nitrogen cycles do so
based on experience from offshore oil and gas
production and are mainly focused on optimising
availability and safety.
As a result, there is disagreement over which
technology will come to dominate FLNG. It is clear
that each will have their own place in the market, but
which is best suited for FLNG? To answer this it is
important to understand the issues and how they
affect project revenue.
Tom Haylock,
KANFA Aragon,
Norway, investigates
which is the most
important factor in
FLNG developments;
optimised efficiency or
optimised availability.
LNG_MARAPR_2013_37-41.indd 37 21/03/2013 12:54
38 LNGINDUSTRY MAR/APR 2013
Technical challenges
FLNG plants have different technical and
safety challenges to well-established
onshore plants. Restrictions concerning
space, weight, logistics, operability and
potential future re-location are forcing
engineers to overcome the technical
challenges in plant design.
Experience from the offshore oil and
gas sector shows that prioritising safety,
availability and flexibility for both changing
feed gas composition and more frequent
start and stops compared to onshore
plants is critical for any offshore process
plants success. Applying this logic to
FLNG leads to the use of nitrogen as a
refrigerant as it is non-hazardous, single
phase and simple to operate.
However, a nitrogen cycle has poorer
process efficiency than a mixed refrigerant
cycle. But is the improved process
efficiency of a mixed refrigerant cycle
worth the resulting increased safety risk,
higher complexity, lower availability and
reduced flexibility when applied offshore?
Assuming that the challenges for
operability and safety can be addressed for
mixed refrigerant cycles offshore, the
question then becomes: what really is the
more important factor for FLNG
developments; optimised efficiency or
optimised availability?
Efficiency
Although it is common to compare
efficiencies of liquefaction processes using specific power
consumption (kWh/kg of LNG produced), i.e. the amount
of power required per kg of LNG, this method of measuring
efficiency is often misleading. Specific power consumption
focuses only on the power required for the main cycle
compressors and does not take into account important
factors such as ambient conditions and driver efficiencies.
The calculated efficiency of a liquefaction cycle is highly
influenced by where the calculation boundary is set. As such,
the boundaries applied in the efficiency calculations should be
clearly stated, but unfortunately numbers are often compared
on unequal terms.
For accurate comparison it is often best to use the overall
plant thermal efficiency to benchmark different liquefaction
processes. By assuming natural gas is used as fuel, thermal
efficiency expresses how much of the feed is recovered as
product and how much is lost during processing, giving a clear
picture of the entire liquefaction system efficiency.
As an example, the overall thermal efficiencies using
identical and realistic conditions, for both a mixed refrigerant
plant and a nitrogen expander plant, have been calculated for
comparison.
1
Table 1 shows that there are significant differences in the
specific power consumption between the two technologies.
The mixed refrigerant cycle has a lower specific power
consumption than the nitrogen cycle. However, because of the
fundamental differences of the driver efficiencies, the resulting
Figure 1. A typical mixed refrigerant cycle.
Table 1. Comparison of key parameters between a mixed refrigerant cycle and a
nitrogen expander cycle (the figures are for the liquefaction train only)
1
Propane pre-cooled mixed
refrigerant cycle
Dual nitrogen expander
cycle
Gas turbine driver Frame 7 and frame 6 LM6000
Average thermal efficiency of
driver
33.2% 41.9%
Production capacity per train 4.35 million tpy 1.11 million tpy
Specific power consumption for
liquefaction cycle
0.243 kWh/kg of LNG 0.345 kWh/kg of LNG
Thermal efficiency 94.7% 94.3%
Figure 2. A typical nitrogen expander cycle.
LNG_MARAPR_2013_37-41.indd 38 21/03/2013 12:54
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40 LNGINDUSTRY MAR/APR 2013
difference in the liquefaction cycles thermal efficiency is so
small as to be negligible.
This is because mixed refrigerant cycles onshore typically
apply heavy duty industrial gas turbines with relatively poor
thermal efficiencies. For offshore applications, some mixed
refrigerant cycles are being applied with steam turbine drivers,
which have even poorer efficiency, as well as no available
waste heat. High efficiency aero-derivative gas turbines that
are used on nitrogen cycles are rarely applied to MR cycles as
their output limits would require duplication of units, which
adds more complexity to an MR plant. Aero-derivatives are
limited on output, which limits the production possible per
train for N
2
cycles. But when looking at the overall plant
efficiency, there is little difference between a nitrogen cycle
and a mixed refrigerant cycle in reality.
Efficiencys effect on revenue
How does improved efficiency actually affect a projects
revenue? If we assume that everything else is equal, improved
efficiency will result in reducing the amount of fuel gas
required, giving longer production time. So what is the cost of
fuel gas and how does it affect net present value calculations?
How much extra investment cost would be reasonable to
consider for improved efficiency/lower feed gas shrinkage?
For an offshore field developed with a single liquefaction
plant for processing all recoverable reserves, the value of the
fuel equals LNG sales value at the end of the production time.
Assuming that it is possible to apply drivers with the same
efficiency and the availability is equal, the most efficient mixed
refrigerant cycle will typically give 30% lower fuel
consumption than a nitrogen cycle. This difference
corresponds to 2 3% of the plant total feed gas flow.
Again, for a true picture of the fuel consumption the overall
plant efficiency should be used, as this takes into account the
total fuel gas consumption for the plant.
The present value data shown in Figure 3 applies a
conservative internal rate of return of 15% on a field with
reserves of 2.5 trillion ft
3
and a nominal production time of
25years when producing 2milliontpy of LNG. Initial CAPEX of
US$ 1000/tpy (topsides and hull only) was set and should be
in the lower range of recently published costs for onshore and
offshore LNG projects, together with a fixed amount for
subsea CAPEX (US$500million).
A nitrogen expander plant with thermal efficiency of
94.4% will produce for 24years,
giving an overall present value
of US$ 4550 million. A
development based on a 30%
more efficient technology, and
identical capacity, availability,
and capital cost, would give
sixmonths longer production
and a present value of
US$4566million. So having a
cycle that is 30% more efficient
gives a revenue increase of only
0.4% over the field lifetime.
Based on the above
example there is little incentive
to invest more CAPEX in order
to boost efficiency, as the effect
on net present value is so low.
Availability
Availability is more straight
forward than discussing
efficiency. Reduced availability
results in reduced revenue for
each year of production. It also
delays part of the production,
such that the last part of the
reserves will be sold later and
generate less present value.
When considering the two
main technologies for FLNG,
mixed refrigerant is expected
to have poorer availability than
nitrogen. This is because mixed
refrigerant cycles are more
complex multiphase
processes, which require fine
tuning to hit their optimum
efficiency for a specific gas
Figure 3. Production profile and present value for constant production capacity while varying
thermal efficiency.
1
Figure 4. Cumulative present value for different levels of availability.
1
LNG_MARAPR_2013_37-41.indd 40 21/03/2013 12:54
composition. Vessel motions will affect the liquid
phase and distribution in the cold box, and gas
compositions can change quickly in an offshore
environment due to wells coming on and off line, all
of which will make availability suffer accordingly.
Mixed refrigerant cycles are also very complex and
require more manpower and a large inventory of
hazardous refrigerants, which again affects
operability and availability. Nitrogen, on the other
hand, is a simple, single phase non-hazardous
technology that is well suited to an offshore
environment.
Taking the same example of two plants with the
same production capacity (2 million tpy), efficiency and
investment costs, but with different availability (93%
and 95%), the effect on present value is quite
pronounced (Figure 4).
The 2% reduction in availability reduces cumulative
present value by 3%. According to supplementary
calculations,
1
the saving in initial CAPEX (plant and ship)
to justify this reduced availability is a minimum of 5%.
Alternatively, a maximum of 5% more CAPEX can be
invested to recover the availability. Hence, high inherent
availability is much more important for the project
economy as it has a greater effect on revenue.
Conclusion
In conclusion, considering the examples detailed in
this article, it is clear that selecting the liquefaction
technology with the optimal availability is the most
important consideration.
Overall production levels affect the project
economy the most. This is a question of multiple
nitrogen cycle trains vs. single mixed refrigerant cycle
trains. Due to their lower CAPEX costs and significant
advantages offshore, multiple N
2
trains are a strong
solution for high production with high availability.
The common claims and assumptions that mixed
refrigerant cycles are a better choice than nitrogen
cycles for natural gas liquefaction due to their specific
power consumption can be misleading.
The examples show that when considering whole
plant efficiency, a nitrogen expander cycle utilising a
highly efficient aero-derivative gas turbine is as efficient
as most of the onshore LNG plants operating today.
So it is highly important that a clear understanding
and comparison of key factors such as safety,
availability, thermal efficiency and net present value
are taken into consideration when selecting
technologies for FLNG. Nitrogen gas expander cycles
offer a safe, simple, reliable and low cost solution for
offshore or at-shore FLNG, with overall efficiency
comparable to state-of-the-art mixed refrigerant
cycles onshore or offshore, but importantly with
optimised availability.
Reference
1. Faugstad, S., and Nilsen, I.L., Natural gas
liquefaction using Nitrogen Expander Cycle - An
efficient and attractive alternative to the onshore
base load plant, GPAE AGM & Technical Meeting,
29 November 2012.
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42 LNGINDUSTRY MAR/APR 2013
Dominique Gadelle,
Tania Simonetti
and Sylvain Vovard
Technip, France,
examine different
process technologies for
offshore LNG facilities.
Offshore processing
LNG_MARAPR_2013_42-48.indd 42 21/03/2013 14:07
MAR/APR 2013 LNGINDUSTRY 43
I
n recent years, floating LNG (FLNG) technology has
progressed to a point where it is now an effective
way to recover and monetise gases that previously
were either inaccessible in stranded fields, or destined
to be flared or re-injected as the unwanted by-product
of oil production. FLNG increasingly represents the most
effective way to monetise remote gas assets, without
the need for the costly and complex facilities required
when the gas must be brought onshore to be treated and
liquefied.
Modular construction in well-equipped and
experienced shipyards offers high labour productivity,
excellent quality and the possibility for continuous
improvement. The projects are no longer prone to a wide
variety of potential difficulties at site.
On the other hand, an FLNG unit poses a number of
new challenges in terms of safety, energy efficiency,
adaptation to limited space and random multi-directional
motions.
An FLNG unit is expected to meet a number of
requirements:
Process units shall be compact.
Weight shall be minimised.
LPG inventories shall be low.
Process technologies and designs shall be proven.
Availability shall be comparable to a land-based
installation despite the location, sea motions,
potential for shut downs, etc.
LNG_MARAPR_2013_42-48.indd 43 21/03/2013 14:07
44 LNGINDUSTRY MAR/APR 2013
With these constraints in mind, this article presents
three processes developed by the authors, each one
simple and efficient as required by the offshore industry,
that can be applied in future FLNG projects to further this
emerging industry.
Feedstock preparation
Raw natural gas has to be treated prior to being
liquefied to remove the following impurities that could
freeze during liquefaction: carbon dioxide (CO
2
), sulfur
compounds, water (H
2
O), mercury (Hg) and heavy
hydrocarbons including benzene.
Two schemes are commonly used in the LNG industry
to remove C2+ components and benzene, both based on
cryogenic fractionation. These are the widely used scrub
column and a turbo-expander based NGL recovery process
for high performance plants or those treating more
difficult gases.
FLNG refrigerant cycles composed of a gaseous
mixture of one or all of N
2
, CO
2
and C
1
have been proposed
for safety reasons. In this case, refrigeration does not rely
on extracted LPGs for inventory make-up. In addition, the
production of C2+ hydrocarbons offshore is undesirable
for reasons of space, weight and safety. Consequently, a
new process (Figure 1) is presented for fractionation of a
natural gas feedstock into two products only: a treated
gas, which can be liquefied; and a saleable condensate
with a low vapour pressure. Equipment number, the units
footprint and downtime for maintenance are all minimised.
This new scheme fulfils the requirements of an FLNG
facility:
The low liquid inventory increases safety.
A turbo-expander provides all refrigeration, resulting in
smooth and fast start-up and re-start.
During start-up, the treated gas is recycled to the inlet
of the plant, thus avoiding flaring.
A booster compressor is used to allow liquefaction at
very high pressure, which improves efficiency.
All C4 components are left in the treated gas and
produced as LNG, so this process is best suited when the
refrigeration system used to chill the gas is not based on
mixed light hydrocarbon refrigerants.
Tricycle a new liquefaction
process
Onshore liquefaction plants use mechanical refrigeration
and light hydrocarbons (C2 C5 depending on the
process) among the refrigerant components. Offshore, it is
important to minimise the inventory of light hydrocarbons,
particularly in the liquid phase, to reduce the risk of
explosion and the need for safety gaps between modules.
If they can be eliminated entirely, the production or the
importation of propane and ethane and respective storage
facilities can be avoided.
Nitrogen expansion cycles are one known solution.
However, they suffer from poor efficiency and the heat to
be dissipated from the compression loop is significant,
increasing the size of the cooling water system, piping and
heat exchangers.
The newly developed Tricycle liquefaction process
uses three gaseous phase refrigeration cycles with
expansion turbines. Unlike the standard nitrogen cycle, the
efficiency of the Tricycle process approaches that of
processes using light hydrocarbons refrigerants to within
20%. Each of the three cycles is totally independent from
the other two. Gas compositions, pressures and
temperatures are optimisation parameters.
The gaseous refrigerants of the three expansion cycles
are mixtures of natural gas and nitrogen, which is
produced in all LNG plants for inerting piping and
equipment. Refrigerants can be produced rapidly from the
process. This avoids the problems caused by the first fill of
refrigerant, eliminating the hazards from LPG handling and
the problems of finding a refrigerant with very high purity.
Figure 1. Offshore dual column process.
Figure 2. Tricycle liquefaction process.
Figure 3. HiPur process.
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46 LNGINDUSTRY MAR/APR 2013
The fact that all refrigerants stay in the gaseous phase
reduces the hydrocarbon inventory, compared to a
traditional refrigeration cycle. There is no need for a large
liquid accumulator.
A major advantage on a floating platform is that the
process is not sensitive to motion.
In short, the Tricycle process fills the gaps between the
reverse Rankine cycles, which boast high efficiency but
result in liquid light hydrocarbons refrigerant inventory
on-board, and the reverse Brayton cycles using pure
nitrogen, which improve safety at the expense of low
efficiency.
The proposed scheme consists of three reverse
Brayton cycles, in which the refrigerants remain in the gas
phase even at the expansion turbine outlet where
temperatures are lowest.
The refrigerant selected will depend on the
temperature sought. Pure nitrogen can be easily used from
ambient down to -170 C with the possibility of subcooling
the LNG and having no end flash. Methane can be used
down to -110 C. Mixtures of methane and nitrogen are
often the most advantageous. Performance can be
optimised through the addition of CO
2
or C2 C5
hydrocarbons, on the condition that the refrigerant
remains gaseous.
Figure 2 shows the simplest configuration using three
separate cycles to precool, liquefy and subcool the natural
gas.
The three totally independent cycles can be adjusted
individually to obtain the best thermodynamic efficiency.
In addition, three cycles are easier to start up and operate.
This intrinsic flexibility has been extensively studied to
know how to adapt to the most frequently met cases. For
example, a gas mixture fairly close to raw natural gas can
be used for the precooling cycle, while a lean natural gas
can be used for the liquefaction cycle. The subcooling
cycle is inevitably high in nitrogen.
From this insight it is apparent that the Tricycle process
is a potentially attractive alternate liquefaction process for
the FLNG industry as it moves forward.
HiPur nitrogen removal unit
When the nitrogen content of the feed gas is high, an end
flash unit is a necessary step to ensure the LNG product
nitrogen content is below 1% mol. This limit on nitrogen is
dictated by the storage tank minimum design temperature,
by the need to eliminate the risk of roll-over and the
simplification of boil-off gas management.
For low nitrogen feedstock, subcooled LNG can be
routed straight to storage and an end flash unit can be
avoided.
However, for feedstocks rich in nitrogen, the
drawbacks of a simple flash drum become increasingly
problematic as N
2
content progresses. The outlet
temperature from liquefaction is the only adjustment
variable, with higher N
2
requiring a higher temperature that
generates increasing quantities of flash gas. When this
exceeds fuel gas requirements it must be recycled for
liquefaction. This results in an accumulation of N
2
, which
can render the flash gas unsuitable as fuel gas through
insufficient calorific value and control instabilities, due to
the large differences in Wobbe index between sources.
A process that removes nitrogen from the picture
solves all these end flash gas disposal issues.
For FLNG, high utility nitrogen demand associated with
a need for cryogenic quality is a new challenge for the
offshore industry, where compactness and a small
footprint and weight are so important. LNG carriers and
offshore production platforms have used multiple banks of
membranes that are frequently oversized to cover for peak
demand generated by purging requirements associated
with offloading, tank maintenance, etc. Conventional LNG
carrier operations require 97% purity nitrogen whereas
FLNG may require up to 9899% purity. High purity can
be attained with membranes by adding additional stages
in series. However, this consumes space.
So the idea of producing high purity cryogenic nitrogen
in large quantities from end flash gas is attractive,
particularly for nitrogen rich feedstock. The challenge is to
maintain purity and exclude methane in the nitrogen vent.
Technips HiPur process has been designed to meet
these challenges; to obtain low levels of nitrogen in the
LNG product even for challenging feed stocks, produce
nitrogen with a methane content below 0.1% mol that can
be used in the plant or vented in an environmentally
friendly way, and to eliminate fuel gas quality
management problems.
The process can also be designed to produce liquid
nitrogen that can be stored to meet peak demand, and
helium, a highly valuable product, which is concentrated in
the nitrogen vent and becomes easily recoverable.
The process consists of a distillation column, refluxed
to achieve the low methane content in the overhead
nitrogen and reboiled to remove nitrogen from the LNG
bottom product.
Key features include a reverse Brayton refrigeration
cycle using the expansion of part of the nitrogen to
subcool LNG from liquefaction. An open heat pump is used
to produce high purity nitrogen and to extract an eventual
helium rich stream. Finally, as the fractionation of methane
Figure 4. FLNG vessel.
LNG_MARAPR_2013_42-48.indd 46 21/03/2013 14:07
LNG_MARAPR_2013_42-48.indd 47 22/03/2013 11:56
and nitrogen is performed at cryogenic temperatures, the
design includes extensive thermal integration to minimise
power consumption.
The heat pump allows condensation of the compressed
overhead vapour by exchanging with the reboiling
bottoms. To be effective, the column condenser and
reboiler must have comparable duties. This is achieved by
adjusting the LNG feed inlet temperature using the reverse
Brayton cycle, which results in the adjustment of the reflux
flow requirement. Given the low refrigerant temperatures
reached, the reverse Brayton cycle requires nitrogen with a
purity of 99%. As shown in Figure 3, the reverse Brayton
cycle can then be integrated with the heat pump
compressor and use the same refrigerant, i.e. the nitrogen
product itself.
The HiPur process allows full advantage to be taken
of the installed gas turbine power and cryogenic heat
exchanger surface. It also provides several valuable
products: liquid and gaseous nitrogen and eventually
helium.
Compared to a conventional end flash scheme, the
main advantages can be summarised as follows:
LNG production is maximised through full recovery of
methane.
Nitrogen no longer goes into fuel gas, increasing
gas turbine availability and simplifying the control
scheme.
The methane content in the nitrogen can be as low as
0.1% mol, reducing the impact on the environment if
vented.
High purity gaseous nitrogen can be produced and fed
directly to the utility network or used as refrigerant
make up to the liquefaction cycles.
Fuel gas can be drawn from unprocessed feed gas,
reducing the size and power of the liquefaction unit.
Liquid nitrogen can be produced and stored to meet
peak demand.
Helium in the feed gas is concentrated in a single
nitrogen vent stream and can eventually be recovered
to provide an additional source of revenue.
Conclusion
In recent years, FLNG technology has gained acceptance
with two offshore projects under construction for
Shell and Petronas. Technip has a central role as the
engineering contractor leading both EPIC contracts in
consortia with Samsung Heavy Industries (SHI) and
Daewoo Shipbuilding and Marine Engineering (DSME),
respectively. In parallel, a suite of three processes have
been developed and patented to provide a new response
to the demands of offshore operations, including
increased safety, flexibility, operability and compactness,
reduced sensitivity to motions and ultimately improved
profitability. Although the next step is to adapt the
processes to equipment that is already available, or that
can be developed easily by scale up of proven designs,
these processes can now be considered for use on new
projects.
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MAR/APR 2013 LNGINDUSTRY 49
A new venture
John Hritcko,
Wison Offshore &
Marine Inc., USA,
introduces the
worlds first FLSRU.
T
he challenge: a customer wants to produce natural
gas from a relatively small, remote onshore resource
base and needs a cost effective, fit for purpose
solution to deliver the production to market. The local gas
market is not an optimal choice for the project and the
gas supply deliverability is not large enough to support a
traditional onshore liquefaction facility.
This is the situation that confronted Pacific Stratus
Energy Colombia Corporation, a subsidiary of Pacific
Rubiales Energy (PRE), the Colombian-Canadian
exploration and production company, producing natural gas
from the onshore Creciente Field in Colombias Lower
Magdalene Valley basin.
LNG_MARAPR_2013_49-52.indd 49 21/03/2013 14:11
50 LNGINDUSTRY MAR/APR 2013
To solve its dilemma, PRE teamed up with Exmar, the
independent, diversified Belgium-based shipping company
serving the oil and gas industry and specialising in
transporting LNG and other liquefied gases. The resulting
scheme that developed will soon become the worlds first
floating liquefaction, regasification and storage unit
(FLRSU).
The solution
The solution is a barge-based FLRSU capable of converting
the gas stream into LNG that may temporarily be stored in
onboard tanks, delivered into an adjacent floating storage
unit, then offloaded into shuttle tankers that would carry
the LNG to market.
In the summer of 2012, Exmar turned to Shanghai-based
Wison Offshore & Marine Ltd to construct this innovative
solution. The company provides full life-cycle of project
delivery from engineering and design, project management
and construction, to commissioning and operations of all
types of oil and gas projects.
The FLRSU will be built, owned and operated by Exmar.
The entire capacity of the facility is leased to PRE under a
long-term contract. Wison Offshore & Marine executed an
engineering, procurement, construction, installation, and
commissioning contract to serve as the primary contractor
to Exmar.
The design and engineering of the FLRSU has been
undertaken by Wisons engineering centre in Shanghai.
Construction began in December with the first striking of
steel at the companys fabrication yard outside of Shanghai
at Nantong. The Houston, Texas subsidiary of Wison is
providing support for the project.
Two of the major subassemblies of the FLRSU, the
topsides equipment including the liquefaction plant and the
storage tanks and cargo handling equipment, are being
supplied by Black & Veatch and TGE Marine, respectively.
Black & Veatch will incorporate its patented PRICO
single mixed refrigerant technology in a compact, modular
liquefaction unit. The process lends itself to this type of
offshore use because of its simplicity and scalability,
resulting in relatively low cost.
The LNG storage will consist of three IMO Type C tanks
with a total liquid capacity of 16 100 m
3
. TGE Marine will
also supply the cargo handling equipment along with the
electrical, instrumentation and gas safety systems.
Location and design
The FLRSU facility will be located approximately 4km
offshore, where the water depth is about 14 m. In
order to link the onshore natural gas supply with the
offshore facility, PSE will construct an 18 in. dia. pipeline,
approximately 88 km long, extending from the Creciente
Field to the coast. Natural gas will be delivered to the
FLRSU barge using conventional hoses between the jetty
and the barge.
As a result of the relatively shallow water depth, the FLRSU
barge will be moored to four guide piles using a bracket
system that will allow the barge to move vertically (heave), but
not forward and backward or sideways. The floating storage
unit (FSU), which may be either a converted or new-built LNG
carrier, will be moored conventionally to the mooring piles of
the jetty with the FLRSU barge held fast between it and the
jetty. LNG carriers arriving to receive cargoes from the facility
will use the proven Exmar ship-to-ship (STS) transfer system
for offloading the LNG from the FSU.
The facilitys design parameters were dictated by the
customers gas production and local market requirements.
PSE has the exclusive right to deliver natural gas and
liquefy up to 0.5 million tpy of LNG over a 15-year period
pursuant to a tolling agreement. The natural gas supply is
expected to have a composition of less than 1% CO
2
,
allowing ready application of a floating modular unit.
Figure 1. Wison Offshore & Marine Ltd is delivering the worlds first floating LNG liquefaction, regasification and storage unit (FLRSU).
LNG_MARAPR_2013_49-52.indd 50 21/03/2013 14:11
A regasification option was designed into the facility to
accommodate the occasional need to import LNG to serve
the Colombian market. Approximately 65% of Colombias
electricity is generated by hydropower, but occasionally
during La Nia weather patterns, water shortages
necessitate the increased use of gas-fired power
generation. During those times, the Creciente Field
production may not meet the market needs and the ability
to import LNG will be critical.
The dimensions of the FLRSU barge are: 144 m long x
32 m wide x 20 m deep. The draft will be 5.4 m. The three
storage tanks will be arranged in-line along the axis of the
beam and located inside the hull. The topsides equipment
will weigh approximately 5000 t.
The three 5367 m
3
, IMO Type C, LNG tanks were chosen
to avoid concerns regarding sloshing. In addition, the robust
tank design offers considerable strength to withstand both
inner and outer pressure with safe and simple control.
These tanks are designed for easy operation and
maintenance and there is no need for a secondary barrier.
The liquefaction unit will be capable of processing nearly
70 million ft
3
/d of gas, or roughly 0.5 million tpy of LNG, while
the regasification capacity will be up to 400 000 million ft
3
/d
of gas. The FSU alongside of the FLRSU barge will offer an
additional 151 000 m
3
of LNG storage capacity.
Following the yard commissioning, the FLRSU will be
loaded onto a transport vessel for dry transport to
Colombia, where the unit will be offloaded at an inshore
location, then wet-towed to the final installation site. The
barge will be fitted to the mooring brackets and the natural
gas feed lines attached. The target date for the mooring of
the FLRSU is the fourth quarter of 2014.
Conclusion
Wison Offshore & Marine is proud to be the primary
contractor for Exmars pioneering FLRSU project.
Capitalising on Wisons deep-water offshore experience
and applying patented Black & Veatch liquefaction
technology in conjunction with TGE Marines cargo
containment and handling systems to deliver a first of its
kind solution opens new doors for the company in the
floating LNG (FLNG) sector.
Barge-based FLNG is an enabler for small to mid-scale
emerging gas markets. The project size lends itself to
off-the-shelf modular components that are relatively easy
to fabricate and outfit in controlled shipyard settings.
Additionally, with an unobtrusive, smaller environmental
footprint and higher likelihood of successful permitting,
FLNG holds many advantages relative to traditional onshore
plants. Ultimately, the customer gets the benefit of cost and
schedule advantages over alternative new build solutions.
Given the markets desire for innovative, cost effective
solutions, this venture into LNG is likely to be the first of
many for Wison.
LNG_MARAPR_2013_49-52.indd 51 21/03/2013 14:12
Cver 23 years of
Experience ln Lhe LNG industry.

Cver 23 years of
Excellence ln cryogenics.

Cver 23 years of
Outstanding records.

Cver 23 years of
Sanshed customers.
Nikkiso Co. LTD, JAPAN Tel +81 42 392 3548, cryosales@nikkiso.co.jp
Nikkiso Cryo Europe, ITALY Tel +39 02 93468623 , nikkisocryoeurope@lewa.it
Nikkiso Cryo Inc., USA 1e| +1 702 643 4900, nc|.markenngQn|kk|socryo.com
SUBMERGED MOTOR CRYOGENIC
PUMPS FOR LIQUEFIED GASES
LNG_MARAPR_2013_49-52.indd 52 21/03/2013 14:12
MAR/APR 2013 LNGINDUSTRY 53
L
ower capital costs, shorter on-stream
time, lower coastal environment
impact and flexibility these are some
reasons that led to the development of the
floating storage and regasification unit (FSRU).
Typically these units are like large barges that
are semi-permanently moored offshore from
their regasified LNG delivery sites and are fed by
standard LNG carriers. A special subset of the FSRU
concept is the LNG carrier, which is fitted with full
regasification capability. These ships transport LNG
from the liquefaction plant to the customer and then
regasify the LNG offshore. These special vessels are
known as LNG shuttle and regas vessels (SRVs).
As the SRV is repeatedly subjected to seagoing
vertical and lateral accelerations exceeding those of
moored FSRUs, these unique vessels require
regasification pumping systems designed and tested to
perform during and after exposure to differing levels of
motion. Along the various phases of the SRV delivery
rotation, the pumps are exposed to a spectrum of
accelerations, as shown in Table 1.
F
A
B
I
E
N

A
. W
A
H
L
,
N
I
K
K
I
S
O
C
R
Y
O

I
N
C
., U
S
A
, D
I
S
C
U
S
S
E
S
T
E
C
H
N
I
C
A
L

A
D
V
A
N
C
E
S
F
O
R
L
N
G
P
U
M
P
S

A
B
O
A
R
D

F
S
R
U
S
.
FLNG
LNG_MARAPR_2013_53-58.indd 53 21/03/2013 15:44
54 LNGINDUSTRY MAR/APR 2013
LNG pumps for SRV
Figure 1 shows the Nikkiso Cryo regasification ship pump
set, which has been used on board the Excelerate Energy
fleet of vessels since 2004. Standing on the left, is the
emergency/in-tank pump, which on an SRV must perform
the duty of being the primary feeder to the deck mounted
high pressure send out pumps and to the line packing
pumps. Lying on the Horizontal Assembly Stand

is the
send out pump. The line packing pump is positioned on
the far right.
The in-tank pumps are located inside the emergency
wells found on a traditional LNG carrier. Unlike the original
emergency pumps that are part of a classical ship set,
these primary pumps are permanently lowered in the
column. These pumps feed the suction drum, and are rated
for a flow of 620 m
3
/hr, with a differential head of 115 m.
The pump rated power is 200 kW.
The send out pumps are located on the bow of the
ship. They are mounted in their own suction vessel,
themselves integrated onto skids. These pumps feed the
vaporisers at a flow of 205 m
3
/hr, and with a differential
head of 2370 m. The pump rated power is 1100 kW.
Line packing pumps are operated during the start-up of
the regasification unit to pressurise the vaporisers and the
downstream pipeline smoothly without any liquid
hammer. These 200 kW pumps deliver the same
differential head as the send out pumps (2370 m), but at a
lower flow rate (20 m
3
/hr). The line packing pumps are
vessel mounted on the bow of the ship along with the
send out pumps.
For more recent projects, such as Golar Winter and
Hegh LNG Neptune, larger send out pumps have been
developed, reaching 15 stages and 1500 kW.
Technical advances
In-tank pumps
On a conventional LNG carrier, the emergency pump, if
ever needed, is lowered with cables and rests on the foot
valve unsecured. If the pump remained in position while
underway, it would be free to tilt or rebound vertically
on the foot valve seat, especially during severe sea
conditions. Therefore, emergency pumps are stored on
deck.
Figure 1. Nikkiso Cryo regasification ship set.
Table 1. Operation environment
Accelerations (G) Regasification
operation
Transit seagoing
Vertical 0.4 0.8
Transversal 0.2 0.5
Longitudinal 0.1 0.6
LNG_MARAPR_2013_53-58.indd 54 21/03/2013 15:44
LNG_MARAPR_2013_53-58.indd 55 21/03/2013 15:44
56 LNGINDUSTRY MAR/APR 2013
To meet the needs of floating LNG (FLNG),
NikkisoCryo has developed a method to replace lifting
cables with a segmented lifting pole. This engineered
system not only functions to lower or remove the pump
from the column but also holds the pump on the foot
valve seat and prevents any movement of the pump in the
column. Additionally, the design of the foot valve seat has
been enhanced to a conical shape, which offers a self
centering and optimised contact surface and eliminates
any possibility of the pump sliding on a flat seat.
Send out pumps
The mass and the size of the send out pump, combined
with the motion of the ship, induce high mechanical
stress issues. In traditional land based applications, the
send out pump is suspended from its discharge manifold
inside the suction vessel. When the ship is pitching and
rolling, the mass-inertia-induced lateral displacement of
the pump would generate high stress loads on the bolt
circle connecting the pump to the suction vessel. In order
to prevent any relative motion of the pump with respect
to the vessel, Nikkiso Cryo has added a stabilising pin
underneath the suction manifold of the pump. This brass
male pin engages in the stainless steel female receiver at
the bottom of the vessel. The design enables longitudinal
translation to account for thermal contraction differences
between the aluminium pump and the stainless steel
vessel. The pin also prevents lateral displacement,
suppresses any bending
moment and also ensures the
pump housings will not flex or
cause interference between the
rotating elements of the pump
and the close fitting bushings
and bearings.
The same flexing might occur
between the suction vessel and
the deck of the ship. If this were
to occur, the pump mounted
stabilising pin could transmit the
flexure to the pump housing
through the above mentioned
receiver mounted at the bottom
of the suction vessel.
Additionally, the vessel
supporting pods would be
subject to an increased bending
stress. To eliminate these
effects, Nikkiso Cryo has added a
similar male/female pin
arrangement on the external
bottom of the vessel and the
deck of the ship.
This dual male/female pin
configuration between the pump
and the vessel on one hand, and
between the vessel and the deck
on the other hand, creates a rigid
design with no lateral degree of
freedom.
In a usual land based send
out pump design, when the
pump is not operating, the dead
weight of the entire rotation
assembly (rotor, shaft, all
impellers, and their retainers) is
supported by only one radial
bearing. The vertical acceleration
experienced on a ship while
underway would significantly
multiply the vertical load
imparted to this radial bearing.
The balls would brinnel the
races and the bearing could be
destroyed with very little, if any,
Figure 2. Send out performance curve with and without motion.
Figure 3. Line packing pump high speed validation.
LNG_MARAPR_2013_53-58.indd 56 21/03/2013 15:44
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LNG_MARAPR_2013_53-58.indd 57 21/03/2013 15:44
58 LNGINDUSTRY MAR/APR 2013
pump operation. Nikkiso Cryo has added a stowage piston
located on the suction vessel head plate. This piston
reaches through the discharge manifold to the end of the
shaft and is actuated either with compressed nitrogen or by
a pneumatic motor. When the pump is not operating, the
stowage piston lifts the shaft and relieves the rotor weight
from the supporting bearing. This stowage position totally
unloads the bearing, and preserves the pump indefinitely.
Just before pump operation, the rotor is lowered smoothly
onto the support bearing.
The pump stabilisation method and the stowage piston
have been patented by Nikkiso under United States Patent
No. US 7,063,512 B2.
Send out pumps are classically long multistage pumps.
In the case of the Neptune project, Nikkiso Cryo supplied a
15-stage pump. The lateral displacement of the shaft
induced by the motion of the ship must be carefully
addressed to prevent a rotor/stator contact during
operation in rough weather conditions. Nikkiso Cryo has
added three radial ball bearings along the pump shaft line.
This unique construction yields a stiff rotor, perfectly guided
on multiple points. Bushings disposed in all non-bearing
carrying stages, provide additional damping. This stiff and
damped rotor dynamics enables a safe pump operation
while the ship is pitching and rolling.
During pump operation, the weight of the rotor and the
hydraulic forces are compensated by the Nikkiso balance
drum assembly. In motion less design, the balance drum
has to account for the changes in hydraulic forces. In case of
vertical acceleration changes, the weight force is also
changing. The Nikkiso balance drum design is a separate
function in the pump, and is independent of the design of
any other component of the pump. Therefore, the balance
drum assembly is designed in order to meet the
requirement of the axial thrust balancing, regardless of the
main flow, head specifications and from the vertical
accelerations environment.
Line packing pumps
The line packing pump specification presents a more
complicated task in that the duty requires the combination
of low flow and high head. Traditional centrifugal pump
selection based on a 60 Hz two-pole motor would have
led to a slim 20-stage, 3.4 m-long pump. With respect
to the vertical and longitudinal vertical accelerations
environment expressed previously, such a long and
thin pump appears as a poor fit. Nikkiso has specifically
developed a Small High Pressure pump, which takes
advantage of a higher speed of rotation to reconcile low
flow and high head. Nikkisos line packing pump uses a
VFD driven motor at 120 Hz. Advantageously, this Small
High Pressure pump has only eight stages and measures
only 1.9 m in length.
The high speed design was supported by a detailed
rotor dynamics analysis and impeller stress calculations.
Validations
The compliance of the design of the large send out pump
with the motion of the ship has been demonstrated during
a full size test on an articulated platform. The platform was
set up near the peak shaver in Trussville, Alabama in 2004,
by El Paso. An entire regasification unit was fitted on the
platform: suction drum, send out pump and vaporiser. The
platform simulated the motion of the bow of the ship in
8m waves. The regasification test was run at full capacity
with LNG supplied by the peak shaver. Comparisons
of data between the steady and articulated operations
show that the send out pump service is insensitive to the
motion.
The Small High Pressure line packing pump was
successfully tested on the Nikkiso test stand of North
Las Vegas, Nevada. The pump was tested at 110 Hz and
120 Hz. The operational speed was then determined to be
116 Hz. For this pump, no impeller trim was necessary,
because the final tune up was performed by speed
adjustment.
Following the validation programme, the Nikkiso
regasification ship set was certified by Bureau Veritas
Marine and Det Norkse Veritas Maritime.
With the eye of Hurricane Katrina only 60 miles away,
the FSRU Excellence was sending out gas at 100%
capacity in the Gulf of Mexico. Regasification operations
were performed in 4 m waves. This validation by Mother
Nature proved the robustness of the entire floating
regasification concept.
Conclusion
Nikkiso Cryo is dedicated to the LNG industry and has
heavily invested in technologies to advance FLNG including
FSRU, FPSO and SRV operations. The company's packages
include the full range of in-tank, send out and line
packing pumps proven in the field. Original technologies
addressing the specificity of operation during ship
motion have been developed, patented and successfully
validated. This line of product is presently in service or
will be installed on board all Excelerate Energy/Exmar
ships, Hegh ships, and Golar ships. Further, this floating
pumping technology has been extended to floating
production facilities, like Shell/Prelude FPSO, which uses
Nikkiso Cryo in-tank pumps derived from ones presented in
this article.
Figure 4. Articulated platform.
LNG_MARAPR_2013_53-58.indd 58 25/03/2013 09:18
A
ccording to Chinas latest five year plan, the annual
demand for LNG throughout the country will increase
threefold from the current level of 2.3 million tpy to
over 7.5 million tpy. Additionally, the ratio of primary energy
consumption from natural gas will increase from 4% to 8% by
2015. Most of this increase will be in the small to mid-scale LNG
market, making it the fastest growing natural gas market in the
world. This small to mid-scale market will use the flexibility of
LNG technology to create virtual pipelines, providing natural
gas to new remote markets that were previously out of reach.
The supply chain for small to mid-scale LNG is not much
different from the fuels that it competes with. From the LNG
source (either an LNG plant or import terminal), LNG is moved
by ships to smaller satellite terminals where it is stored in
cryogenic storage tanks. From these terminals, LNG is pumped
onto standard semi-trailers, LNG rail cars or LNG barges, where
it is shipped to remote locations. From there, the liquid is
vaporised back into gas form and piped to the customers point
of use. In addition to the supply chain side of the small scale
markets, there are plans to construct more than 1500 LNG filling
stations, supplying fuel to as many as 200 000 LNG fueled
vehicles.
The concept of small to mid-scale LNG shares much of the
technology with traditional, large scale LNG, however the scope
Made to measure
Christopher Finley, Ebara
International Corp., USA, discusses
the development of a new generation
of small to mid-scale submerged LNG
pumps for small scale LNG facilities.
LNG_MARAPR_2013_59-62.indd 59 21/03/2013 14:21
60 LNGINDUSTRY MAR/APR 2013
of equipment supply is much smaller. Due
to the smaller volumes of gas, all of the
related equipment from ships to tanks and
receiving terminals are around one-tenth the
size of typical large scale LNG. The smaller
equipment size results in lower capital
outlay requirements, less time to build and
requires less effort to get through local
approval processes.
Pumping equipment
for small to mid-scale
applications
At several points in the small to mid-scale
LNG logistics chain, land based LNG storage
tanks are used for receiving and off-loading
purposes. The typical and preferred method
to unload these LNG tanks is to utilise a
retractable submerged motor centrifugal
pump, mounted inside each tank. Although
these types of tanks may vary significantly
in size and construction, the design of
the retractable submerged motor pumps
and related systems are similar. The main
components of this type of pump are
the tank column and suction valve, the
retractable pump and the retraction system.
The purpose of the pump column is
two-fold. First, it acts as a discharge pipe for
the submerged pump, guiding all flow from
the pump to the outside of the storage tank.
The second purpose of the pump column is
to provide a method to safely remove the
pump from the tank, with liquid inside. To
accomplish this task, the retraction system
is used to slightly raise the pump inside the
column. As the pump is raised, a suction
valve mounted to the bottom of the pump
column closes, sealing off the column from
the storage tanks content. Once the valve is
completely closed, any residual LNG left in
the pump column is removed by
pressurising it with nitrogen, creating a safe
environment. The pump can then be
completely removed from the tank without
removing any of the liquid in the tank. This
gives operators on site flexibility in
scheduling routine maintenance both on the
tank and on the pump itself. Today, almost
all LNG storage tanks built use this type of
submerged motor pump and pump column
design.
There are many benefits to using these
types of submerged motor retractable
pumps over external sealed motor pumps.
In non-submerged motor pumps, the pump
motor is mounted outside of the process
fluid, while pump hydraulics are mounted
inside the process fluid. This configuration
requires a dynamic shaft seal between the
cryogenic LNG and the relatively high
temperature of the outside atmosphere.
Because the temperature differential is
so high between the two sides of the
seal (typically more than 160 C),
effectiveness and reliability are a major
concern. Another benefit of submerged
motor pumps is that due to the
non-conductive nature of liquefied
gases, the pump motor is completely
submerged and cooled in the process
liquid without fear of a short circuit in
the motor windings. Also, due to the
fact that there is no oxygen present in
the LNG tank itself, the pump is
installed in a safe, explosion free
environment. Finally, because the entire
motor and pump assembly are
completely submerged, there is no
need for shaft seals, eliminating the
risks experienced in external motor
pumps.
Typical LNG pump
designs
Since the initial development of
cryogenic submerged retractable
pumps, most pump designs are
engineered to order. This means that
each pump component is custom
engineered to meet very specific duty
requirements including flow, head,
power, electrical classifications and
other installation site needs. These
major pump components consist of
pump casings, electrical motor and shaft
and hydraulics.
The first step in designing custom
pumps is to review the performance
requirements and develop hydraulic
components to meet them. In many
cases, pump manufacturers have
extensive libraries of pump hydraulic
designs allowing them to simply choose
impeller, diffuser and inducer
combinations to meet the specified duty.
However, it is not uncommon to design
completely new hydraulics when the
required duty point is outside of the
existing hydraulic library.
The next step in the engineer to
order process is to size and design the
pump motor. Although several stator
frame diameters are standardised, the
length of the stator and rotor are
specified for each individual pump to
maximise efficiency at the given duty
point. This results in a virtually infinite
number of possible motor designs,
requiring each motor to be custom
manufactured.
The final step in the pump design
process is to design the pump and
motor casings to house all of the
Figure 2. Typical engineered to
order retractable pump.
Figure 1. Typical retractable pump
system.
LNG_MARAPR_2013_59-62.indd 60 21/03/2013 14:21
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LNG_MARAPR_2013_59-62.indd 61 21/03/2013 14:21
62 LNGINDUSTRY MAR/APR 2013
previously designed components. Due to the variety of pump
hydraulic and motor designs described above, the pump
casings must also be custom designed for each application.
Once the casing designs are created, they are sent to a
pattern maker who then builds custom
patterns before the parts can be produced.
These patterns are then sent to a foundry
where they are used to produce custom
aluminium sand castings of each component.
Next, the castings are sent to a machine
shop where they are machined to the final
design parameters. The end result is casings
that perfectly match the pump hydraulics
and motors, but sometimes cannot be used
again in the future.
Once all of these pump components are
manufactured, they are sent to an assembly
plant for final assembly, full performance
testing, inspection and shipment. The
complete process from pump sale to
shipment can commonly take 12 to16months
to complete. With traditional large-scale
LNG projects planned many years in advance
of construction, this lead-time is perfectly
acceptable and expected. For small to
mid-scale applications, where the speed and
cost of planning and construction must be
much lower, engineer to order lead times
and costs are too high.
Next generation small
scale LNG pumps
To be competitive in the small to mid-scale
LNG market both in China and throughout the
world, the design methodology for small and
mid-scale retractable pumps had to be adapted. Due to the
ever-increasing unit volume demand, shorter lead-time
requirements and cost pressure, specialty engineer to order (ETO)
companies must find ways to apply configure to order (CTO)
techniques to streamline internal processes. By adopting CTO
techniques, state-of-the-art engineering companies can produce
technologically advanced products with shorter lead times,
higher quality and at lower costs. The main difference between
CTO products and ETO products is that for CTO products, most
of the engineering, design and manufacturing is done upfront,
before specific demand for the product is generated. This
allows manufacturers to simply assemble pre-designed and
manufactured components in unique configurations to meet
the customers requirements. To meet this challenge, Ebara
International Corp. has developed a line of standardised, CTO
pumps that provide ETO quality and customisation.
One of the benefits of the small to mid-scale market is the
relatively small operating range required for pumps.
Specifically, this range was found to be anywhere between
45m
3
/hr at 60 m of head to 200 m
3
/hr at 375 m of head.
Through thorough analysis, the company developed a design
matrix defining all of the possible flow and head variations
within this range with the specific goal of minimising the
amount of design variation required. This analysis showed
that with only three impeller/diffuser/inducer combinations,
every possible combination could be reached with minimal
effect on hydraulic efficiency.
Although only three hydraulic combinations are
required to meet the performance envelope, duty points
that required relatively high head would
still require multiple hydraulic stages;
the number of which varies throughout.
This causes the number of design
variations to be a product of the three
hydraulic combinations, as well as the
number of stages. To address this fact,
the company decided to incorporate
variable speed technology, when
necessary. By varying the pump speed
using a variable frequency motor drive,
all duty points could then be reached
with only one hydraulic stage. The end
result is that the entire performance
range could be met with only three
design configurations.
The next challenge to address was the
process of designing and manufacturing
the pump motors. Because there were
only three design variations for the pump
hydraulics, the company set out to design
only three different motors to cover the
entire performance range, to keep the
overall design iterations to a minimum.
This goal was ultimately achieved by
working with motor design specialists to
develop highly efficient motors that can
operate both at variable speeds (up to
120Hz or 7200 RPM) and over a wide
power range.
The final step in creating
pre-configured standardised pumps was to design the pump
casings. The goal of this process, as with the other
components, was to minimise the number of design
variations. By designing all of the pump casing and related
hardware to accept the largest motor and hydraulic
combination, the company was able to create only one set of
casing designs to meet the full performance range. Also, to
avoid the typical lengthy manufacturing process of using
castings for these casings, the company developed all
aluminium billet machined components. Using this type of
manufacturing technique removes several steps in the typical
casting manufacturing process, reducing part lead times to
days instead of months.
The final outcome of this engineering effort was a
pre-engineered, CTO product that retains all of the benefits of
an ETO product, without the lengthy lead-time and high costs.
Conclusion
As small to mid-scale LNG projects ramp up throughout the
world, the need for short lead-time and low cost pumping
equipment will also increase. Without sacrificing quality
or technological advantages, Ebara International Corp. has
developed a new line of small to mid-scale retractable
LNG pumps that meet the demanding delivery and cost
requirements of this new market.
Figure 3. Ebara Internationals
new standardised small to mid-scale
retractable LNG pump.
LNG_MARAPR_2013_59-62.indd 62 21/03/2013 14:21
MAR/APR 2013 LNGINDUSTRY 63
T
he heat is on in Darwin, Australias gateway to Asia,
but the reason is cool: LNG. In January 2012, the
Japanese company INPEX and its French partner
Total announced the official go-ahead for a US$ 34 billion
project: the development of the Ichthys field, located
850km offshore from Darwin, Australia. Scheduled to start
production by the end of 2016, it is estimated to yield a peak
output of 8.4 million tpy of LNG.
With this deal, Australia could challenge Qatar as the
worlds biggest producer of LNG by 2020. Fueled by urgent
orders from Japan and the energy-hungry economies of
China, India, and other Asian countries, the demand for LNG
is expanding much faster than projects can come onstream.
Gas companies are spending billions of dollars building LNG
plants. In Australia, they are currently working on seven of
the worlds 10 major LNG projects.
Performing reliably
One fundamental contributor to the effectiveness of such
huge investments is extremely reliable, high-performance
equipment. Since 1974, Ebara International Corp.s
Cryodynamics Division has been supplying more than
6000pumps and expanders for LNG carriers and land-based
facilities, including major projects, such as those operated
by Qatargas and RasGas or KNPCs North Tank Farm.
Soon, Ebara will also contribute to the Ichthys LNG
project, the worlds longest undersea gas pipeline venture,
as well as to Shells Prelude facility, a groundbreaking
Thomas Goettlinger, Schott,
Germany, and Don Polkinghorn,
Ebara International Corp., USA, explain
the technology needed to
steadily and securely feed LNG
pumps with power.
S
LNG_MARAPR_2013_63-66.indd 63 21/03/2013 14:28
64 LNGINDUSTRY MAR/APR 2013
achievement using innovative FLNG technology off the
coast of Western Australia. Its pumps and expanders are
designed to operate completely immersed in cryogenic
liquids. This calls for a commitment to safety and quality
that embraces all related components.
Safely powering the pumps
Utmost attention is given to the electrical system. The
pumps mounted aboard the cryogenic containment require
electricity for control, instrumentation and power of up
to 6600 V. The penetration from atmosphere into the
cryogenic liquid is accomplished using specially designed
electrical feedthroughs, also called terminal headers. Since
the late 1990s, Ebara has increasingly been equipping its
installations with feedthroughs made by Schott Electronic
Packaging, which use a unique compression glass-to-metal
sealing technology.
Terminal headers perform two main functions: they
safely provide electricity to highly susceptible appliances
potentially exposed to explosive atmospheres, and they
maintain the pressure boundary integrity of the
containment structure. Meeting the most demanding
applications for hermetic terminal headers, Schotts
feedthrough modules are resilient to thermo-cycling,
thermo-shock, and temperature ranges from -196 to
+100C (-320 to +212 F).
Gastight contraction
The feedthroughs are sealed with non-ageing glass that
remains pressure and vacuum-proof for many decades. Be
it in LNG applications, hydrogen-cooled generators or even
nuclear power plants and submarines, Schotts sealing
technology has proven its maintenance-free durability and
reliability in more than 12 000 installations around the world
since the early 1960s.
The terminal headers basically consist of only three
components: metal conductors, a glass sealant and a metal
housing. The preassembled components are heated up to a
temperature at which the special glass melts to the metal.
During the cooling process, the metal housing contracts to a
greater extent than the glass, creating a robust,
compression-sealed unit that guarantees practically
unlimited pressure-proof hermeticity.
Advantages
In contrast, epoxy seals contain organic substances that age
naturally, particularly when exposed to severe temperature
fluctuations. An inorganic alternative is ceramic, but this
material cannot be melted directly to metals like steel or
copper. Soldering or welding is required that often tends
to corrode in harsh environments, starting with surface
imperfections that can develop into fissures. Due to the
lack of compression sealing, ceramic isolators are also
more likely to develop surface cracks over time. Such
developments can impair the isolators dielectric function
and lower the resistance of the seal following an accident. In
addition, loss of tightness may occur.
However, glass-to-metal seals are proven to
withstand extremely high pressure and thermal shocks.
Before shipment, Schott tests each product vigorously at
one-and-a-half times the maximum design pressure, up to
225 bar. It is thoroughly checked for leak tightness with
helium mass spectrometers. An electrical test ensures
that no short circuits result when electric power of up to
11 000 V and 1000 A flow through the glass-insulated
conductors.
Approved and certified
As they are employed in hazardous environments, most
cryogenic pumps require cable penetrations with a
double safety barrier. Conventionally, two feedthroughs
connected by cables are integrated in a row. However,
a more compact double penetration developed by the
company in close cooperation with its customers allows
Figure 1. LNG already accounts for nearly 35% of the worlds
natural gas shipments. This success has been made possible by
the fact that the highest possible safety standards apply.
Gas-tight feedthroughs maintain the integrity of the pressure
vessels.
Figure 2. Schotts electrical penetration assemblies serve as
the hermetic feedthroughs for the three-phase electrical power,
as well as the control and instrumentation signals.
LNG_MARAPR_2013_63-66.indd 64 25/03/2013 09:15
Hermetic. Safe. Maintenance-free.
Glass-to-Metal Sealed Electrical Terminal Headers for LNG Pumps
Non-aging hermetic glass-to-metal sealing technology enables the safe
and reliable supply of electricity to the submerged cryogenic pumps
Explosion-proof electrical feedthroughs, manufactured according to
ATEX and IECEx standards
Maintenance-free in more than 2,500 pumps worldwide, after more
than 35 years in the field
Electronic Packaging
SCHOTT AG
Christoph-Dorner-Strae 29
84028 Landshut, Germany
Phone +49 (0) 871 826 125
ep.info@schott.com
www.schott.com/epackaging
LNG_MARAPR_2013_63-66.indd 65 21/03/2013 14:28
66 LNGINDUSTRY MAR/APR 2013
for smaller dimensioning of the feed lines. This offers the
possibility of nitrogen purging for periodic or permanent
leakage-monitoring or inertisation of both pressure
barriers. The inner chamber can also be closed and
certified as a flameproof enclosure. Therefore, no nitrogen
purging equipment is required.
Both single barrier and double penetrations were
thoroughly tested at Ebaras cryogenic performance test
facility in Nevada, US. The positive test results add to the
feedthroughs international quality certifications, which
facilitate the approval of installations by customers and
regulatory authorities. Schotts explosion-proof glass-to-
metal seals comply with the European ATEX directive and
international IECEx standard, as well as specific local
regulations, such as those from KOSHA (Korea
Occupational Safety and
Health Agency) for
South Korea.
Expanding
offshore
Schott has now arranged
for all of its products
designed for offshore
applications to also be
certified according to
special standards for
ship classifications.
This certification, based
on the so-called plan
approval, means it is
no longer necessary
to obtain a project-
related approval for
each separate use of
the product. Once
this certification is
obtained, it will save the
companys customers
a lot of time and effort,
because products can
be made available much
more quickly.
This arrangement
additionally supports the
use of the companys
feedthrough technology
not only in LNG shipping,
but also in young and
strongly expanding
markets, such as
maritime propulsion and
smaller-scale LNG
facilities near harbours.
On top of that, the race
for FLNG facilities,
needed to tap more than
2000 trillion ft
3
of
proven undeveloped
offshore gas reserves
around the world, has just begun. Supplying Shells
Prelude project, Schott and Ebara continue their
pioneering partnership.
Conclusion
Providing safe, effective and reliable appliances required in
LNG process technology demands expertise and state-of-
the-art equipment. Schotts hermetic glass-to-metal-sealed
feedthroughs adhere to the highest quality standards and
can be considered a safe technology for supplying electrical
signals and power amidst the harshest environments. Their
proven performance amplifies the efficiency and safety of
submerged cryogenic pumps and expanders that serve
in most of the worlds LNG facilities and aboard marine
vessels.
Figure 3. Ebara International, suction vessel mounted high pressure pump. Source: Ebara International.
LNG_MARAPR_2013_63-66.indd 66 21/03/2013 14:28
MAR/APR 2013 LNGINDUSTRY 67
Keith Stewart, Herose GmbH,
Germany, discusses the issue of safety
certification in the LNG industry.
F
uelling ships in the Nordic regions; shale gas fields
in the US; vehicle use across the globe; an energy
resource to power major cities in China and other
developing countries these are just some of the
applications that demonstrate the incredible scope and
breadth of the LNG industry.
But behind this dynamic story of growth and global
opportunity, there are major concerns expressed at the
diverse LNG forums and conferences. Experts in the
shipping industry in particular have highlighted the impact
on safety as companies race to keep up with new LNG
applications. Ship fuelling, bunkering, vehicle fuelling,
mobile stations and a multitude of other uses raise the
question: who should set technical and safety standards?
LNG_MARAPR_2013_67-69.indd 67 21/03/2013 14:34
68 LNGINDUSTRY MAR/APR 2013
Lessons to learn
Safety is a concern that is shared at cryogenic valve
provider, Herose. It is the key to commercial success
because of the fatal impact that accidents can have on
people, the environment, an organisations shareholder
value and the reputation of the industry. What is more, it
only takes one incident to ruin a companys perfect safety
record, as has been seen in the industrial gas industry.
If similar incidents are repeated with LNG, the
consequences for the entire industry will be catastrophic. In
1994, an industrial gas incident in Germany was caused
when a cryogenic vessel exploded, resulting in a fatality.
Concerns about all low-pressure vessels and high-pressure
trailer pumping resulted in changes to vessel and valve
codes in many countries. Today, industrial gas has regulating
authorities and is managed by the major industrial gas
companies, which drive high industry standards and make
working with industrial gas safer than ever.
Processes such as filling, which have become a daily
activity in the LNG industry, are governed by stringent
standards in the industrial gas sector. As LNG applications
diversify, surely now is the time to learn from previous
mistakes and adopt standards, rather than wait for an issue
to drive change?
Who should set the standards?
The majority of companies using LNG take their safety
responsibility seriously and make sure their systems and
components meet industry specifications. However, Herose
provides advice and supplies the valves needed for every
stage of the cryogenic storage and transportation process,
and it still sees companies using different types of valve for
the same application. In view of this, there is a need to
develop global, mandatory standards. So who should take
the lead in setting them?
Perhaps relevant industries need to form partnerships to
consider whether the responsibility lies within the specific
sectors using equipment, such as oil and gas, shipping or
industrial gas sectors. Alternatively, global equipment
manufacturers have an in depth understanding of what is
required with installations; or national or global agencies
could take ownership?
Industrial gas and LNG two
industries, one set of
standards?
Gas associations and safety organisations that protect the
LNG and industrial gas industries include SIGTTO the
worlds leading safety organisation for LNG,
encompassing almost all LNG tanker and terminal
operators. The industrial gas industry has the CGA in North
America, EIGA in Europe and other international
organisations including AIIGMA, JIGA, AIGA and ANZIGA.
The CGA co-operates with its sister organisation, EIGA, to
develop harmonised technical rules to protect the
industry, personnel and the public. It could be highly
beneficial to both the LNG and industrial gas sectors to
harmonise standards for LNG use.
Indeed, many equipment manufacturers supplying the
LNG market operate to the standards of the industrial gas
industry. As the specifications for vessels and valves used in
these markets often differ, surely there is a need for the
associations to work together to agree joint standards and
share best practice across the full range of cryogenic
applications.
Colleagues in each association and industry sector have
different views and recently released some powerful
messages promoting the safe use of LNG. However these
have related to individual market sectors, not LNG as a
whole.
An unbroken safety record for
LNG shipping
The LNG shipping industry has operated safely, loading and
unloading at LNG terminals worldwide, for over 45 years. A
group of inspection agencies approve all types of
equipment used in shipping and strongly promote
standards for pressure containing equipment and valves.
This group, together with the international inspection
agency, SIGTTO, have contributed greatly to safety
standards. Regulation has led to an unbroken safety record,
giving the industry its licence to operate.
Although the last few years have seen less demand on
existing fleets to ship LNG, new uses and applications for
LNG are likely to mean that fleet sizes will increase over the
next five to ten years. This will be achieved safely using the
standards already practised in shipping.
Figure 1. LNG trailer filling facility.
Figure 2. LNG storage facility.
LNG_MARAPR_2013_67-69.indd 68 25/03/2013 09:25
MAR/APR 2013 LNGINDUSTRY 69
With the development of
LNG fuel for use in ship
propulsion, inspection
agencies also inspect and
approve fuelling systems on
ships and bunkering stations.
However, the focal points for
bunkering installations and
the loading and unloading of
smaller ships at river
installations need to be
regulated not only in Europe
but worldwide.
Oil and gas companies
have invested greatly in the
shipping of LNG, selling it for use as a
global energy resource. The loading
and unloading of ships carrying LNG is
similar to the industrial gas sector,
although the latter loads and unloads
its cargo more frequently and takes
almost a day longer to complete. In the
industrial gas industry, the major
companies enforce mandatory safety
standards and procedures, once again
ensuring an impeccable safety record.
Diverse standards
in China
There are a growing number of small to
mid-scale LNG processing plants across
the globe. Specifications for Chinese
plants have been developed by the
processing industry, while saving
stations (storage plants) follow the same
standards as either the oil and gas
industry or the industrial gas industry,
depending on vessel size. Chinese
equipment manufacturers use standards
taken from the industrial gas industry for applications with
argon, nitrogen, oxygen and hydrogen. The standards for
these varied projects often come from many different
industries, yet the medium for them all is LNG.
In addition to storage vessels, equipment manufacturers
supply trailers and rail cars to transport LNG from terminals
or saving stations to the point of use. Having already
supplied the industrial gas market, suppliers have risen to
the challenge of manufacturing cryogenic equipment for
new and developing LNG applications, such as ship fuelling
and bunkering. These applications are similar to those used
in the industrial gas market and therefore they adapt the
industrial gas standards.
Selecting the right valve is
critical
Industry associations have an important role in regulating
activities, but there is still some way to go to establish standards
for valves and to guarantee safety in all LNG installations. When
accidents inevitably happen, processes must be in place to make
sure that systems shutdown effectively and that
the right valves are always used. This is why
selecting the right valve is critical. For example,
fire-safe valves are designed to withstand
extremely hot temperatures and emergency
shut-down (ESD) valves close quickly to prevent
fire from spreading, so closing time is important.
The following highlights the valve
options for each application:
Ship fuelling manual and control globe
valves; manual gate valves; ESD globe
valves with fire-safe control trim; safety
and changeover valves.
Trailers manual globe, gate and ball
valves; ESD gate valves and globe valves
with fire-safe options; safety and
changeover valves.
Bunkering manual globe, gate, ball and
butterfly valves; breakaway couplings;
quick closing valves with fire-safe control
trim; safety and changeover valves.
Storage vessel manual globe, gate and
ball valves; breakaway couplings; ESD
actuated valves with fire-safe control trim;
safety and changeover valves.
LNG containers drain and sampling
globe valves with fire-safe control trim.
Terminals and plants higher pressure
globe, gate, full-bore butterfly and ball
valves; ESD actuated valves; safety and
changeover valves.
As well as selecting the right type of
valve, it is also important to consider the
following:
Valve trim.
Closing times.
Intrinsic safety type for electrical actuation complete
with any other ancillaries.
Fire-safe options to protect your plant and personnel.
Service intervals for all equipment including valves.
Reliability plays a major role in improving industry
standards, while also reducing total life costs.
Such factors become more critical as LNG supplies are
moved closer to densely populated areas, so that the
liquid or gas can be used as an energy resource and for
vehicle fuelling stations. This is why it is vital that global
associations co-operate to make sure that valves and other
components meet the highest safety standards. Without
doubt, the vast reserves of natural gas in many areas of the
world make it the fuel of the future. Therefore, LNGs role
in the market will continue to grow and prosper as long as
it is safely regulated to protect its personnel, the general
public and our industry.
Figure 3. Class1-Div.1
actuated valve.
LNG_MARAPR_2013_67-69.indd 69 25/03/2013 09:25
LNG_MARAPR_2013_70-74.indd 70 21/03/2013 14:40
MAR/APR 2013 LNGINDUSTRY 71
T
he LNG industry is
continuously working on
the development of new
technologies and processes in
order to improve the performance
of systems and efficiency.
With the aim of supporting the
LNG industry, AMPOs engineering
team is committed to the
development of new products,
technologies and systems, which is
why the company usually works
together with EPCs and the end
users engineering teams. AMPO
has developed projects tailored to
each customers requirements, as
outlined in the two case studies
described in this article.
Moving
forward
Jon Gorrotxategi,
AMPO Poyam
Valves, Spain,
outlines the
companys recent
cryogenic ball
valve projects
in Australia
and China.
Figure 1. Assembly of a
cryogenic AMPO Poyam ball
valve in Idiazabal, Spain.
LNG_MARAPR_2013_70-74.indd 71 25/03/2013 09:26
72 LNGINDUSTRY MAR/APR 2013
Case study 1 cryogenic ball
valves for Australia
Woodside, one of the worlds leading producers of
LNG, contacted AMPO Poyam Valves for the urgent
replacement of a cryogenic butterfly valve and a
cryogenic gate valve for the Pluto LNG plant in Australia.
Both valves, previously developed by another company
with a different technology, had to be replaced in a short
period of time, due to a leakage problem.
The solution
AMPO, specialising in cast steels, high specification
valves and an energy-sector engineering service,
suggested the installation of two top entry 42 in.
cryogenic ball valves. The valves are made of ASTM A351
CF8M/Trim SS316 material, have a pressure rating of
150# (lbs) and were built per API6D ISO 14313 standards,
BW end connections and gear-operated. AMPO
supplied more than 11 000 valves to Pluto LNG. A key
reason for selecting AMPO was that its cryogenic valve
standard completely fulfilled Woodsides strict technical
requirements. With its own foundry, and being able to
offer integrated solutions with complete control of the
production process (valve design, pattern manufacturing,
casting, assembly and testing), AMPO undertook the
completion of the valves in a period of 20 weeks.
Inspection
Despite the size and complexity of the valves, the project
had another important milestone: Shells TAT Inspection.
Shell visited AMPOs headquarters in Spain for the
testing and final approval of the valves. Although the
valves were going to operate at ambient temperature,
following Woodsides specifications, they were checked
at cryogenic (-196 C) and high temperature (150 C).
Once the testing was completed, both valves were
shipped to Australia.
The end user in this particular location did not trust
the 42 in. butterfly valves due to the leakage problems
experienced. The customer was relieved once the new
ball valve was installed, as this critical area requires a
reliable valve.
Case study 2 LNG receiving
terminals
In order to increase plant production capacity, some
LNG receiving terminals are increasing plant design
pressure up to 1500# (lbs). This brings a new challenge
to the design of top entry cryogenic ball valves. The
main design challenge could be focused on the sealing
components; especially seats, seals and stem packing.
Moreover, special care has to be taken with the material
selection, as well as the design tolerances.
AMPO Poyam Valves has been selected to
collaborate on these projects and has supplied high
pressure cryogenic valves for the first two LNG plants in
the world. These cryogenic ball valves have been
installed in Dalian LNG and Jiangsu LNG in China, owned
by Petrochina. Their sizes range from 2 in. to 28 in. and
they are made in ASTM A351 CF3 and TRIM SS316
materials. They can withstand temperatures from -196 C
to 200 C and have API6D and BS5351 standards, BW
connections, lever and gearbox, and pneumatic actuator
for actuation.
The companys main products for LNG receiving
terminals are manual and ESDV cryogenic ball valves.
Top entry design is the most common, as it results in
easy maintenance of the valve, without having to
Figure 2. 42 in. top entry cryogenic ball valve for Australia.
LNG_MARAPR_2013_70-74.indd 72 25/03/2013 09:27
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You can
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LNG_MARAPR_2013_70-74.indd 73 25/03/2013 09:08
74 LNGINDUSTRY MAR/APR 2013
disassemble it from the pipeline. Moreover, the valves
may contain transition pieces (seamless pipe) for extra
support, and these are welded at AMPOs workshop.
It was a big challenge for the EPC of the projects,
China Huanqiu Contracting & Engineering Corp. (HQCEC),
and the end user, Petrochina. The valves were
successfully delivered and commissioned and the plants
are now in full operation. However, due to the novelty of
these high pressure valves, the end user is concerned
about the valve performance on site. Therefore, AMPO
Poyam Valves is ready to provide full support during
plant operation and is in talks to create a long-term
relationship during operation between the maintenance
team and the field engineering service (FES) team.
Supplying LNG valves
AMPO began in Idiazabal, Spain, in 1964 as a moulded
steel foundry. When it merged with Poyam in 1970, it
ran the cooperative company towards the valves sector.
Consequently, AMPO Poyam Valves first cryogenic valve
was supplied in 1979 for an Enagas receiving terminal
located in Barcelona.
Since then, AMPO has supplied more than
100 000 cryogenic LNG valves all over the world, in more
than 30 countries. To move forward and respond to the
LNG market changes and innovations, AMPOs R&D team
has developed a diverse range of projects focused on
developing the following:
Green valves the company is working to improve
valve performance to achieve no emission valves.
Key factors towards fulfilling this technological
promise are best practices on external and internal
sealing, as well as improvements to achieve less
torque, lighter weight and no emission solutions in
valve performance.
Smart safety valves the companys remote control
processes, such as new engineering solutions,
predictive maintenance equipment and new control
systems, are just a few of the solutions offered. The
performance of the valves under high pressure and
temperature cycles meet the safety integrity level
(SIL) standards.
Hardwearing solutions industrial processes are
becoming less straight-forward, while difficult
extraction processes are increasingly complicating
production. In order to help, some of the companys
main projects are cutting edge designs to prevent
wear and tear, as well as new coatings to reduce
friction between contact surfaces. Therefore, analysis
of the capabilities of fluid media, tribological coatings
and process studies are also developed.
The experience that AMPO has acquired and its way
of understanding service has positioned it as a leader in
sectors with very high requirements, and its valves cover
the entire LNG chain.
Figure 3. Cryogenic test.
LNG_MARAPR_2013_70-74.indd 74 21/03/2013 14:41
MAR/APR 2013 LNGINDUSTRY 75
W
ith the explosion in interest in gas as a clean
burning fossil fuel there have been huge
implications for the shipping and offshore energy
sectors.
The prospects for the use of gas to power ships have
really taken off. LNG is certainly a fuel of the future and the
combination of emission regulations and energy prices is
driving demand for change.
But gas as fuel for ships presents certain risks and
hazards that need to be addressed. Operational reality
requires that flexibility is accommodated into new rules that
interface effectively with risk based approaches to dealing
with novel concepts.
Lloyds Register has been working to ensure that
shipowners, ship designers, shipbuilders, equipment
manufacturers and technology developers can meet safety
and performance goals by developing an approach that
involves both prescriptive (rule based) and risk based
approaches for when there are no rules.
With novel concepts there will always be challenges to
address: will it work; will it work safely? Shipowners, cargo
owners, ports, regulators, banks and insurers are all asking
these questions.
Luis Benito,
Lloyds Register,
UK, discusses
new developments
in gas fuelled
shipping.
future?
A gas powered
LNG_MARAPR_2013_75-79.indd 75 21/03/2013 14:48
76 LNGINDUSTRY MAR/APR 2013
Lloyds Register looked at what is unique in designing
gas fuelled ships and it developed rules that will now evolve
as solutions based on a thorough evaluation of risk that can
eventually support rule based solutions. This is an ongoing
process of constant improvement following proven
performance.
Completed in July 2012, the new rules replace
LloydsRegisters provisional natural gas as fuel rules. They
have been harmonised with the IGC Code that covers the
transportation of gas as a cargo and the draft IGF Code that
addresses gas as a marine fuel. They were developed using
in-service experience and the companys work with the
industry on joint industry projects, as well as the oversight of
its Technical Committees. This experience helps develop
new rules as new technologies are validated through the
companys risk guidance and understanding of hazards,
combined with the companys leading risk methodology
using qualitative and quantitative risk assessments.
The big question for shipowners is when, or if, to invest.
They need to take a view on whether gas prices will justify
the investment and whether, for their operational
requirements, gas will be available where and when they
need it. Securing supplies of gas for a fixed point trading
ship, such as a small ferry, is much easier right now than for
deep sea ships trading worldwide.
Are certain ship types more
likely to adopt gas as fuel?
To date, most LNG as fuel applications are in the smaller
ferry and offshore vessel sectors concentrated in the Baltic
and Norwegian shelf, where local drivers, including the
Norwegian No
x
Fund, and ease of moving LNG by road
support investment decisions and bunkering operations.
So far as the deep sea trades are concerned,
LloydsRegisters LNG bunkering study released last year
concluded that containerships and cruise ships will be the
most likely to adopt gas as fuel technology if the price is
right and bunkers are available.
Case studies: New gas fuelled
ship projects
Lloyds Register was right at the heart of some of the most
significant gas as fuel newbuilding projects to date: the
worlds first LNG fuelled tanker newbuilding, MT Argonon;
Viking Grace at STX Finland; and the largest gas engined
application under construction, the new LNG powered bulk
carrier design, Clean Sky.
MT Argonon
The worlds first new LNG-fuelled tanker was delivered in
Rotterdam, the Netherlands, to Lloyds Register class at the
end of 2011. The delivery of MT Argonon, a 6100 DWT
dual-fuelled chemical tanker, represented a significant
milestone for the Deen Shipping subsidiary, Argonon
Shipping B.V., in its pursuit of cleaner transport solutions for
Europe. Lloyds Register helped the owners and regulators
to identify their risks, meet regulatory requirements and
overcome the technical challenges for the precedent-setting
tanker.
This has been a great project and it is a significant first,
said Piet Mast, Lloyds Registers Marine Business Manager
for Western Europe. The nature of inland waterways traffic,
which passes through or close to
major population centres, makes
LNG an attractive way to reduce
harmful local emissions. We had
to look carefully at the risks and
worked closely with the owner and
the regulators to ensure that they
understood, and were comfortable
with, the technical solutions that
were developed.
The dual-fuel system is
designed to burn an 80/20 mixture
of natural gas and diesel, reducing
So
x
, No
x
and particulate-matter
emissions, as well as reducing the
greenhouse gas emissions from
tank to flue. The LNG is stored in a
transport tank located on deck,
supplied by Cryonorm Projects,
based near Amsterdam.
The inland shipping industry,
as far as we know, is the safest and
Table 1. LNG bunkering demand model (base, high and low case scenarios)
Factors Input
assumptions
Base case High case -25% Low case +25%
Regulatory
compliance
Emission control
areas (ECAs)
Confirmed ECAs Confirmed ECAs
plus speculative
ECAs in 2018
(Japan, Singapore,
Panama)
Confirmed ECAs
0.5% global sulfur
date
2020 2020 2023
Newbuild demand Propensity to
select LNG fuel
from 2020
Increase propensity
by 50%
Increase
propensity by 75%
Increase
propensity by 25%
Fuel prices HDO/MDO/MGO
2012 forecast
By year-on-year
change in crude oil
price
Same as base case Same as base case
LNG bunker price
forecast 2012
2025
By HFO/Henry Hub
gas prices (75%/
25%) year-on-year
change
Base case -25% Base case +25%
Figure 1. Clean Sky design.
LNG_MARAPR_2013_75-79.indd 76 21/03/2013 14:48
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LNG_MARAPR_2013_75-79.indd 77 25/03/2013 09:09
78 LNGINDUSTRY MAR/APR 2013
cleanest mode of transport. But, to keep this lead, we have
to take a big step forward in environmental performance,
said shipowner Gerard Deen. I think that the dual-fuel
principle is a way to reduce the emissions in our sector.
Along with Lloyds Register, the Netherlands Shipping
Inspectorate approved the vessels LNG system for operation
in the Netherlands and the ship has taken on its first load of
LNG bunker fuel. The next step is to secure the regulatory
approvals from the Central Commission for Navigating on
the Rhine and the UN-ECE ADN Safety Committee, to open
the way for navigation beyond the Netherlands.
New generation Viking
Viking Lines decision to order a 56 000 GT ice class
passenger ferry, Viking Grace, was a real step up in scale
for LNG-fuelled projects. There is nothing else either on the
blocks or even ordered yet that comes close to the energy
requirements of Viking Grace. Built to operate between
Turku and Stockholm, the ship was floated out at STX Turku
in August 2012, and will be delivered early in 2013 as Viking
Lines new flagship.
Lloyds Registers role included helping owners and
builders navigate a path through the complexity of a novel
design to meet regulatory, class and operational
requirements.
The ferrys bunker tanks are located on the stern and
propulsive power is from four Wrtsil 8L50DF engines in a
gas electric system that will deliver 30 400 MW. The ship
will bunker at the Stadsgrden facility in the port of
Stockholm. The LNG will come from the AGA LNG terminal in
Nynshamn.
Clean Sky design
A new LNG fuelled bulk carrier design, developed by COSCO
Shipyard Group, Golden Union of Greece and Lloyds
Register, was publicised in December 2012.
The Clean Sky design Kamsarmax project moves the
industry beyond the concept stage for gas powered bulk
carriers.
Lloyds Register has provided approval in principle (AIP)
for the new design incorporating an LNG as fuel system.
COSCO, Golden Union and Lloyds Register started the
project in June 2011 to investigate the potential to develop a
commercially viable bulk carrier design based on an existing
COSCO conventional design but employing gas powered
propulsion systems.
The Clean Sky design builds in flexibility by enabling
owners to choose dual, or tri-fuel engines able to burn HFO
or diesel as well as LNG.
To date, LNG-as-fuel research, technology development
and newbuilding activities have focused on specific niche
sectors such as ferries, offshore vessels and short sea, or
inland, trades. This project paves the way for take-up in deep
sea bulk carrier trades, and for tankers.
The LNG bunkering study
Will LNG be available as a fuel for ships
and where and when?
Global acceptance of LNG as a marine fuel will depend on
pricing, according to a comprehensive study conducted
by Lloyds Register, which aims to help clients draft
plans for future emission compliance. The 12 month LNG
survey looked at the main deep sea trade routes, the fuel
consumption of vessels in the global fleet and the current
and future location of bunkering. The study will also help
to foster the future design and technology of propulsion
systems in the global shipping industry.
The study found that competitive pricing could see
widespread adoption and investment in LNG fuel technology
by stakeholders in the deep sea trades.
The studys findings have been turned into an interactive
model on LNG bunker demand, that can be used to
understand the likely future trajectory of LNG availability and
demand as a marine fuel for deep sea ships.
Following rigorous testing and validation processes with
key industry stakeholders, the dynamic LNG demand model
was developed based on LNG supply, trade routes, ship-
type fuel consumption, port locations and bunkering
demand, as well as shipowner and port surveys. Three
demand and price driven scenarios were then applied
(Table1).
Outside of the niche markets, the study found that the
establishment of LNG bunkering infrastructure capable of
supporting most of the worlds consumers will be highly
sensitive to the price of LNG relative to alternative fuels.
The obstacles to the adoption of LNG as a marine fuel
are practical factors, but they are not technical. Establishing
safe, reliable global LNG bunkering capability is feasible, but
it will require considerable investment and risk
management, and it will have to cover significant
operational costs to challenge existing fuel-oil delivery
systems.
The LNG bunkering infrastructure study, released at
Gastech 2012, also suggests some owners would be wise to
consider fuel flexibility.
The studys base-case scenario predicted that by 2025
there could be 653 deep sea, LNG-fuelled ships in service,
consuming approximately 24 million t of LNG during
20122025. These ships are most likely to be
containerships, cruise vessels or oil tankers.
When the study modelled relatively cheap LNG for
example, 25% lower than current market prices the
projected number of LNG-fuelled ships rose to approximately
1960 units in 2025. If the cost of LNG increased 25% against
current prices, the model found that hardly any new LNG-
powered tonnage would hit the water.
Excluding smaller ferries and local trades where there are
local market, fiscal and regulatory drivers, such as in parts of
the Baltic and Norwegian shelf, it was the container-ship and
cruise-ship markets that were the most likely to adopt LNG.
This is because of their relatively high energy requirements,
the demands of customers in these two sectors, their regular
trading patterns and the time those ships spend in
emission-control areas.
The difficulty for those looking to make decisions is that
forecasting energy prices has always been a dangerous
business. For shipowners looking to make these decisions,
flexibility may be the key. Choosing engines that can burn
both gas and fuel oil, or that can be converted, may be one
way to manage the regulatory and commercial issues
involved with fuel choices.
LNG_MARAPR_2013_75-79.indd 78 21/03/2013 14:48
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LNG_MARAPR_2013_75-79.indd 79 25/03/2013 09:10
Figure 1. Wrtsil
LNG regasification
technology onboard
Hegh LNGs shuttle
regasification vessel
GDF Suez Cape Ann
at Samsung Heavy
Industries in South
Korea.
LNG_MARAPR_2013_80-85.indd 80 21/03/2013 14:55
MAR/APR 2013 LNGINDUSTRY 81
W
hile historically LNG has been stored in shore-based tank terminals,
and then regasified and pressurised using vaporising equipment
before being delivered to the distribution networks, this is no
longer always acceptable. With demand for LNG growing rapidly, the trend is
increasingly towards faster and
less expensive methods. One
viable alternative is to place the
regasification (regas) equipment
onboard FSRUs (floating storage
and regasification units) and
SRVs (shuttle and regasification
vessels). The high-pressure
gas can then be delivered
to land-based networks
either via a floating buoy and
submerged pipeline system
from an offshore location, or via
loading arms on the jetty. SRVs
and FSRUs both offer flexible
solutions with time-frames from
investment decision to start-up
that compare favourably with
onshore regas facilities. Such
solutions represent a fast-track
All aboard
The use of natural
gas as an engine
fuel has made huge
strides during the past
decade. Tore Lunde and
Per Helge Madsen, Gas
Solutions, Wrtsil
Ship Power, detail
the multiple benefits
offered by onboard
regasification modules.
W
All aboard
LNG_MARAPR_2013_80-85.indd 81 25/03/2013 09:28
82 LNGINDUSTRY MAR/APR 2013
way of opening energy markets to natural gas, thereby
increasing supply diversity, while reducing costs and offering
notable environmental benefits.
Expanding LNG carrier
functionality
Typically, systems that use either steam or seawater for
heating and regasifying the LNG are used. The choice of
heating media usually depends on local regulations and
the prevailing climate in the vessels operational location.
Systems that use seawater as a source of heat to vaporise
LNG are more economical than systems using steam. This is
because a steam system requires the burning of fuel at a rate
equivalent to some 2.5% of the amount of LNG produced.
The energy requirement in a seawater based system is far less
as energy is needed only for the pumps.
Heating with an intermediate fluid is utilised in both
steam-based and seawater-based systems. A typical system
installed on a conventional LNG carrier will have a total
export capacity in the range 170 840 t/hr
(2001000millionft
3
/d). Each train typically has an output of
40 210 t/hr, and complete systems comprise several trains
with one or more providing redundant capacity. Delivery
pressures are in the range of 30 130 bar and depend on the
pressure in the receiving grid.
Dedicated pumps in the cargo tank supply LNG to the
suction drum, usually at a pressure of approximately 5 bar, i.e.
at a temperature below its boiling point at the current
pressure. The suction drum acts as a buffer tank, and also as a
gas separator to handle the gas and liquid returned from the
regas trains during certain modes of operation. The pressure
of 5 bar means that LNG is fed to the trains from the suction
drum as a sub-cooled liquid. In the regas trains, the LNG is
pressurised in multi-stage centrifugal pumps and then
regasified in the vaporisers.
The output from each train is high-pressure (30 130 bar)
natural gas.
Floating regasification
solutions
With six systems already delivered, and orders for four
more currently being executed, Wrtsil has supplied about
half of the floating regas units now in operation around the
world. Wrtsil Oil & Gas Systems (formerly Hamworthy
Oil & Gas Systems) began its development work in
regasification technologies in 2006 with a test facility that
was a joint investment project at Kollsnes in Norway with the
Norwegian ship owner Hegh LNG. Both propane-based and
steam-based regas solutions were successfully proven and
demonstrated to potential customers from all over the world.
However, the adding of regas systems to LNG carriers
(SRVs or FSRUs) presents a new set of challenges in terms of
both equipment size and integration into the vessels existing
systems. Furthermore, the equipment that was previously
located on land must be redesigned to accommodate the
unpredictable motion of a seagoing vessel.
The key to this has been a patented propane system that
makes it possible to utilise compact plate heat exchangers.
Furthermore, the use of latent heat in the evaporation
condensation of propane is very efficient, thus allowing a lot of
energy to be transferred without the need of bulky equipment.
The development of complete modules with few
interconnection points has made integration far easier.
Before, when units were supplied on skids, much
interconnection work had to be carried out during installation,
which was a time consuming and complicated business.
Modules also reduce the time required for hook-up to the
vessel or jetty.
To protect the multistage LNG pump bearings during
sailing (when the pumps are not operating), the pumps have
been modified so that it is possible to lower them to a fixed
position inside the pumps suction pot. This modification is
generally made especially for SRVs.
Steam-based systems
The steam-heated regas system delivered by Wrtsil for
the Neptune deepwater
port project off the coast of
Massachusetts, US, uses
a water-glycol mixture as
the intermediate medium.
US Coastguard policy
for the area meant that
seawater could not be used
as a source of heat. The
Neptune project consists of
two membrane-tank-type
SRVs, an offshore terminal
with two buoys, and
pipelines to shore.
Both vessels are
equipped with three regas
trains located in front of the
trunk behind a large wave
breaker. The suction drum
is located on the trunk deck
close to the regas trains.
Each regas train has a
capacity of 210 t/hr of LNG
and a target send-out
Figure 2. The regas modules supplied by Wrtsil Oil and Gas Systems feature an uncomplicated
vessel interface and rapid hook-up.
LNG_MARAPR_2013_80-85.indd 82 21/03/2013 14:55
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84 LNGINDUSTRY MAR/APR 2013
pressure of 46 120 bar. All three trains can be operated
simultaneously if required.
The main benefit offered by steam-based systems is the
fact that the equipment is relatively small. As the heating
medium is at a high temperature, the heat exchangers are
compact and the regas trains have a small footprint and low
weight, making locating them easier.
The drawbacks with steam-based systems are both
economic and environmental. From an economic
perspective, if LNG is used to produce power for the trains
and steam for the vaporisers, approximately 2.5 t of each
100 t of LNG processed will be used for these purposes.
From an environmental perspective, even though LNG is a
relatively clean power source, the CO
2
emissions that
result from onboard power and steam production are
significant.
Seawater heating using
propane as the intermediate
medium
Seawater-heated regas systems that use propane as the
intermediate medium have been supplied by Wrtsil for two
LNG vessels. Both are equipped with three regas trains, each
with a processing capacity of approximately 230 t/hr. Two of
the three trains can be operated simultaneously, providing a
total capacity of some 460 t/hr.
The system onboard one of these vessels can deliver gas
at pressures of up to 105 bar. However, the other vessel
operates in Dubai, where the grid has a low maximum
pressure. Since lower pump pressures save energy, the LNG
pumps in the Dubai-based vessel were delivered de-staged
with a delivery pressure of approximately 70 bar. As the
remainder of the regas system is designed to operate at up to
105 bar, the de-staged pumps can be replaced with
full-pressure pumps if the vessel is relocated at a future date.
Customer benefits
The modular regas units developed by Wrtsil offer a
simple and uncomplicated vessel interface, a small number
of connections for rapid hook-up, a choice of heating sources
(steam/seawater/combined), easy operation, and quick
ramp-up/ramp-down.
Typical delivery times are 12 16 months. The compact
equipment design has a small footprint, while the use of
propane as the intermediate medium eliminates the
possibility that the seawater employed will freeze during
operation.
Future synergies
As the use of natural gas as a fuel for energy plants continues
to gain popularity as a result of both cost and environmental
considerations, the opportunities for applying the latest regas
technology are increasingly significant. For example, while
the regas units supplied by Wrtsil offer significant benefits
as stand-alone systems, combining them with equipment
supplied by the companys power plants business allows
total scope technical and commercial solutions to be
offered, for both onshore projects and offshore applications
such as power barges.
It is not uncommon for new power plant projects to be
contracted on a turnkey or EPC (engineering, procurement
and construction) basis covering the whole terminal. Such
contracts can also involve the supplying of gas for a pipeline
system. In such cases, the regas equipment can be a part of
the total EPC contract. Also,
as exhaust gases from the
engines in a combustion
engine power plant contain
a lot of heat energy, this can
be used in the regasification
process.
In cases where all the
heat required for
regasification can be
supplied from the exhaust
gas, a simple direct ethylene
glycol-based regas system
using elements of the
existing steam-based
system is probably the best
choice. In cases where the
amount of heat that can be
obtained from exhaust
gases is insufficient, a
propane-based solution
using heat from other
sources can be employed.
An EPC solution of this
type could in fact constitute
a complete combined gas
importation terminal and
power generation facility,
comprising LNG storage
tanks, an import jetty,
Figure 3. LNG regasification system.
LNG_MARAPR_2013_80-85.indd 84 21/03/2013 14:55
boil-off gas (BOG) compressors, the regasification system,
the piping, the power plant itself, and all the required
automation and control facilities. Waste energy from the
power plant would be used in the regasification system.
The ability to deliver a total scope facility of this type and
scale represents a competitive edge.
Recent developments
In first-generation propane-based systems, natural gas
leaving the first propane-LNG heater is superheated in a
shell-and-tube heat exchanger with seawater to provide
the required heat.
As the natural gas is at high pressure, the heat
exchangers have to be of fully-welded construction.
Opening them up for cleaning and removing marine growth
resulting from the use of seawater is, therefore, impossible.
In a new system patented by Wrtsil Oil & Gas
Systems, the propane passes through two stages. Propane
in its liquid state is heated with seawater in a semi-welded
plate heat exchanger, before being sent to a printed circuit
heat exchanger (PCHE) that superheats the natural gas.
Propane leaving the PCHE is then expanded through
a pressure-control valve before being sent, in a similar way
to that of first-generation propane systems, to the
seawater-heated vaporisers that produce propane gas for
the first-stage LNG-propane heater. All heating using
seawater is therefore carried out using semi-welded plate
heat exchangers that can be opened and cleaned on the
seawater side to remove marine growth.
In conventional recondenser systems, the BOG is
usually recovered by compressing it and sending it to the
suction drum, where it is condensed by the use of internal
contact with the LNG contained in the drum.
As the compressed BOG is typically at a temperature
between 0 and -60 C, cooling it to its condensing
temperature and then condensing it adds significant
quantities of energy to the LNG in the suction drum, and
can raise it to saturation temperatures.
This problem has been addressed through the
development of an improved and patented recondenser
system. Here, the BOG is pre-cooled to the condensing
temperature in printed heat exchangers (BOG coolers) on
the high-pressure side of the regas system. As well as
allowing significant quantities of heat to be passed to the
high-pressure LNG that will be heated anyway, the total
quantity of BOG that can be recondensed in the suction
drum is approximately doubled since it now enters the
drum at its condensing temperature.
Environmental sustainability
aspects
Through a combination of legislative steps and
awareness issues that impact company image decisions,
environmental sustainability is nowadays of such
importance that it is frequently cited as being one of
the main considerations in contract negotiations for
new power plants. The growing use of natural gas as a
fuel is, therefore, hardly surprising. Following Wrtsils
acquisition of Hamworthy plc in 2012, the research and
development efforts of the two companies have been
integrated, with current activities very much related to
systems that support the LNG chain.
HOT
WORK
Needs a
SafeHouse Habitat
LNG_MARAPR_2013_80-85.indd 85 21/03/2013 14:55
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LNG_MARAPR_2013_80-85.indd 86 22/03/2013 11:26
MAR/APR 2013 LNGINDUSTRY 87
FLOATING
FLEXIBILITY
I
n 2001, equipment to vaporise LNG was incorporated
into the design of an LNG vessel that would become
referred to as a floating storage regasification unit
(FSRU). The purpose of the FSRU is to provide a platform
to load LNG at a shore side facility, transport the LNG to
another country or location and then regasify the LNG
into a vapour, to be transferred into a pipeline grid for
consumer or industrial use. The FSRUs onboard regas
system is outfitted with an arrangement of high pressure
LNG pumps and corresponding vaporisers. The LNG is
pumped from the cargo tanks to the high pressure pumps
via a suction drum, through the vaporisers and discharged
into a shore mounted connection that taps directly into
local pipelines, eliminating the need for an expensive shore
side regasification facility. An attractive alternative to a
conventional land-based LNG regasification facility can be
constructed in a fifth of the time and at a tenth of the cost.
Brooke E. King, Excelerate Energy,
USA, discusses how floating
regasification technology
can provide flexibility in gas delivery.
Figure 1. Regasified LNG is
offloaded from the FSRU by way
of an HP gas arm.
LNG_MARAPR_2013_87-90.indd 87 21/03/2013 15:05
88 LNGINDUSTRY MAR/APR 2013
Pipeline connection
alternatives
One popular method to connect the FSRU to gas
transmission infrastructure is through dockside equipment
that incorporates the offtake pipeline and a jetty-mounted,
articulated, high-pressure gas-offloading arm to connect to
an FSRU. This method is referred to as a GasPort

facility. The
jetty will include all necessary mooring structure to safely
berth the LNG regasification vessel. The regasification system
will discharge the natural gas into the high pressure gas arm
for delivery into the pipeline.
An alternative is delivery through a submerged turret
loading (STL) buoy system terminal, which consists of a
subsea buoy system moored offshore and linked to a subsea
pipeline to shore by a flexible riser. This buoy system, referred
to as a Gateway

, is used as both the mooring mechanism for


the FSRU and as the conduit through which natural gas is
delivered to the subsea pipeline. When an FSRU arrives at a
Gateway, the subsea buoy is drawn into the hull of the vessel
and locked in place. The regasified LNG then flows from the
ship, through the buoy and riser, into the pipeline and onward
to shore, where it is delivered to the local gas-pipeline
distribution network. The STL system is designed to
withstand natural disasters, and demonstrated its
effectiveness to do so during Hurricane Katrina in 2005.
Whether the FSRU is moored at a jetty or STL buoy, the
vessel can safely discharge regasified LNG with a great
degree of flexibility and at considerable volume. The FSRU
can deliver regasified LNG at pipeline pressure and flow rates
ranging from 50 million ft
3
/d to over 800 million ft
3
/d,
providing quick and convenient access to incremental gas
supplies. The gas throughput capacity of the FSRU can be
increased to meet the larger regasification needs of
customers with the higher capacities presented by next
generation FSRUs.
Ship-to-ship transfer
The FSRUs utilise ship-to-ship (STS) transfer of LNG in order
to optimise the availability of the regasification vessel. During
STS, LNG is transferred between a laden LNG carrier to the
FSRU at or near a market access location. STS transfer can
be done between LNG and FSRU vessels for cargo transfer
or gas-in and containment cool-down. The STS feature can
save time and money, whilst easing berth constraints at
traditional LNG load port facilities. When utilising a supply
vessel to shuttle LNG cargo, STS can be performed at a
GasPort or Gateway for uninterrupted regasification service
to the consumer. STS can be accomplished alongside a jetty
using cryogenic hard-arms, or by double banking while utilising
a system of flexible cryogenic hoses. Excelerate Energy
developed and implemented the commercialisation of STS
and has successfully accomplished over 300 STS operations
through the beginning of 2013.
Onboard regasification
systems
The main components of the onboard regasification system
are the LNG feed pumps located in the cargo tanks,
high-pressure (HP) LNG pumps, shell-and-tube vaporisers,
and heating water circulating pumps. During the onboard
regas process, LNG stored in the cargo tanks of the FSRU
is fed to the suction drum. The suction drum contains
the LNG prior to vaporisation and is used to buffer the
HP LNG pump suction. The suction drum can also be
used to vent and depressurise the regas system. The HP
pumps draw LNG from the suction drum and send it to the
shell-and-tube vaporisers. An HP LNG pump is a 13-stage
centrifugal pump which typically operates at 100 bar
discharge pressure. All of Excelerates regas vessels are
outfitted with six vaporisers; for nominal output, five are
online with one in reserve. The vaporisers are a shell and
Figure 2. A ship-to-ship transfer of LNG underway at GNL Escobar. More than one hundred such operations have been successfully
completed at GNL Escobar, thus far.
LNG_MARAPR_2013_87-90.indd 88 21/03/2013 15:05
Intergraph, the Intergraph logo, and SmartMarine are registered trademarks of Intergraph Corp. or its
subsidiaries in the United States and in other countries. 2013 Intergraph Corporation. 02/13
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BETTER OFFSHORE DESIGN
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LNG_MARAPR_2013_87-90.indd 89 21/03/2013 15:05
90 LNGINDUSTRY MAR/APR 2013
tube-type heat exchanger, adopted to reduce any adverse
effect due to the vessels motion. Compared to land-based
vaporisers, those onboard an FSRU are much more
compact. They have been designed to use seawater as the
heat exchanger medium. The heating water is drawn from
the ballast system, boosted by the booster pumps located
in the forward area, and then delivered to the vaporisers.
The seawater is an effective means of heat displacement;
for a 1C rise in LNG, the seawater is cooled 0.025 C. To
regas LNG from -163 C to 7 C, an equivalent amount of
seawater would only be chilled by 4.25C. The onboard
regasification system can be used in one of three different
modes, depending on sea water temperature, location and
other variables:
Closed-loop mode steam from the FSRU main and
auxiliary boilers is used to heat fresh water circulated
through the shell-and-tube vaporisers in the regasification
plant. This results in minimal usage of seawater by the
FSRU. This method of vaporisation is ideal in areas with
sensitive marine wildlife and/or seawater temperatures
lower than 5.5 C.
Open-loop mode relatively warm seawater is drawn
in through the FSRUs sea chests. This warm seawater is
used as a heat source and passed through the shell of the
shell-and-tube vaporisers, causing the vaporisation of the
LNG. During this process, the temperature of the seawater
is lowered by approximately 7 C. For this reason, the
open-loop mode is not applicable for water temperatures
below 7 C.
Combined mode seawater at temperatures between
7 C and 14.5 C can be used when heated by steam
from the FSRU boilers to provide sufficient heat for the
vaporisation of the LNG.
The maximum rate of discharge of the natural gas from an
FSRU will be determined by a combination of the availability
of capacity on downstream pipelines and the regasification
capabilities of the facilities located onboard each FSRU.
Regas vessels
Currently, Excelerate operates a fleet of eight
purpose built FSRUs, three with an LNG cargo
capacity of 138 000 m
3
and five with a capacity
of 150 900 m
3
. Its ninth FSRU is scheduled to
be completed in May 2014. The newest of its
fleet, it will have the largest LNG capacity in the
industry for a regasification vessel at 173 400 m
3
,
and the highest nominal regasification capability
at 800million ft
3
/d. This vessel is set-up with
a capacity of of 1.2 billion ft
3
/d if called upon
to do so. The newest FSRU is purpose built for
a customer whose energy needs demand a
consistently high output. Until the new vessel is
completed, an existing 150 900 m
3
vessel, the
Exquisite, has been equipped with new, larger
HP LNG pumps and regas vaporisers, which have
increased its peak output to 700 million ft
3
/d.
This particular bridging vessel is operated in the
open-loop mode.
Excelerate Energys shipping fleet is also one
of the most environmentally friendly in operation.
State-of-the-art emissions control systems reduce NO
x

emissions from the boilers by more than 90% when the
vessel is in gas-only operations. In addition, the vessels are
fitted with a proprietary heat-recovery system that reduces
the amount of seawater used in normal operation by 98%,
reduces regasification fuel consumption by 10%, and reduces
overall fuel consumption by 16%.
On the rise
The demand for vessels with regas capability is on the rise
with developers of 44% of the 108 developmental import
terminals tracked by Zeus aim to use floating regas ships
instead of conventional onshore terminals.
1
This concept
of deepwater ports to unload regas was proven at the
companys Gulf Gateway in 2005. The company has an active
deepwater port facility, Northeast Gateway, with two STL
buoys 13 miles off the coast of Massachusetts.
The future
With the demand for regasification vessels on the rise, the
economies of scale demand larger capacity vessels. Several
companies, including Excelerate Energy, are building new larger
capacity vessels. The company is also working on the design
of floating liquefaction storage and offloading vessels (FLSO).
These FLSOs are the next frontier in linking cost effective and
reliable natural gas production to global market access points.
Energy Bridge

is the propriety offshore LNG


regasification and delivery system developed by Excelerate.
This system involves the use of the purpose-built FSRUs for
the transportation and vaporisation of LNG through specially
designed offshore and near shore receiving facilities. Energy
Bridge is a combination of proven technology and equipment
in a new application that represents an innovative step
forward in LNG industry technology.
References
1. http://www.zeusintel.com/ChartoftheWeek/20120918.aspx
2. Lee, J.H., Janssens, P., and Cook, J., LNG Regasification
Vessel The First Offshore LNG Facility, OTC 17161,
Offshore Technology Conference 2005.
Figure 3. STL buoy being prepared to be deployed at the Northeast Gateway


deepwater port.
LNG_MARAPR_2013_87-90.indd 90 21/03/2013 15:05
L
NG tankers are ocean-going vessels
and require a water depth of around
15 m for docking and sailing. Loading/
unloading LNG requires a transfer system extending
from storage tanks onshore to a jetty head where a LNG
vessel is docked. Traditionally, loading/unloading is through
LNG transfer pipelines that are supported above the sea level.
With a maintainable navigation channel or a steep shoreline, a
designated port is often built. Otherwise, a jetty or trestle is typically
selected to reach a suitable water depth. In either jetty or port designs,
traditional LNG piping is supported above the sea level. LNG transfer pipelines
below the seabed have also been developed and at a few existing terminals, LNG
pipelines have been placed inside a large tunnel. Directly buried pipelines have also
Jack X. Liu,
Liu Advanced
Engineering
LLC, USA,
examines the
relative merits
of different
LNG transfer
systems.
LNG_MARAPR_2013_91-96.indd 91 21/03/2013 15:11
92 LNGINDUSTRY MAR/APR 2013
been proposed and a pipe-in-pipe inside a small tunnel
with roller supports has recently been developed.
This article focuses on the LNG transfer systems that
are either used or proposed. Comparisons are made in
terms of basic features, costs, accessability and most
importantly risks associated with earthquakes and
tsunamis, storm surges and high tides, as well as
third-party damage. Finally, the article discusses
technology breakthroughs in LNG transfer including
cryogenic hoses, highly efficient insulation, and automatic
vapour/heat removal.
Existing and proposed
systems
Piping above sea level
Trestles or jetties have been used to support LNG piping
for over four decades. They keep the piping away from
the reach of ocean waves and corrosive sea water. LNG
piping is typically made of stainless steel, a thick layer of
polyisocyanurate (PIR) for insulation, and metallic cladding
as a moisture barrier. In an effort to minimise maintenance
and heat transfer, polymer barriers and vacuum insulated
pipes have started to gain acceptance.
1, 2

At ambient pressures, the temperature of LNG is
around -162 C, above which vaporisation begins.
Expansion loops are widely used to accommodate
thermal expansion/contraction. At some terminals,
bellows are used instead of expansion loops. Typically, an
access road is provided along the piping on the trestle/
jetty. The advantage of the existing system is the easy
access for inspection, maintenance and repair.
Historically, this type of system has performed quite
well, however, it does face challenges. For example, the
11 March 2011 earthquake in Japan generated a 9 14 m
high tsunami along the north-east coast. The Sendai LNG
terminal was seriously damaged and almost all of its port
facilities were destroyed or permanently disabled
because of flooding, except for its 0.08 million m
3
LNG
underground storage tank. It took 14 months to fully
recover from the aftermath.
3
The Sendai LNG terminal has
a port and a short transfer distance. If the piping were on
trestle, the damage would have been much worse
because of debris flows.
Severe weather conditions also threaten a system on
a trestle. For example, Gorgon LNG has had to alter its
original plans and build 56 large size caissons (26 m in
diameter) to support the 2 km long trestle due to high
tides.
4
Pipelines inside a large tunnel
Two receiving terminals have transfer pipelines inside
large tunnels. The first one is at Cove Point in Maryland,
US. The terminal was built in 1976 and is currently owned
by Dominion. The Cove Point tunnel has a rectangular
shape with a width of 8.4 m and a height of 4.9 m.
Bellows are used in the pipelines for thermal expansion
and contraction.
5
The second one is at Ohgishima,
Yokohama, Japan and was built in 1998. The Ohgishima
tunnel has a cylindrical shape with an internal diameter
of 7.2 m that is required to host expansion loops.
6
The
purpose of laying LNG pipelines underground inside this
tunnel is to avoid a trestle that would interfere with a
shipping channel.
A large tunnel provides strong protection against
third-party damage, a water barrier and access to crew
and construction equipment. However, no other terminals
use this type of large tunnel because of its high cost.
Directly buried pipe-in-pipe
A few subsea pipeline systems have recently been
proposed with a pipe-in-pipe configuration and direct
burial.
7-10
A pipe-in-pipe configuration typically comprises
an inner pipe for cryogenic fluids, an outer pipe for
protection and support, and insulation material in the
annulus between the inner and outer pipes. Figure 1
shows a pipe-in-pipe configuration.
With both ends fixed, the thermal stress in a transfer
line has to be dealt with in the inner pipe alone. There are
two ways to deal with the thermal expansion: bellows
can be placed at certain intervals in the inner pipe, or low
thermal expansion material such as 36% nickel steel
(i.e., invar) can be used for the inner pipe. In this
comparison, invar is selected for the inner pipe.
A buried LNG pipeline is straightforward and cost
effective. However, the major concern is water leakage or
LNG leakage that could jeopardise the whole system. Due
to lack of access, a total replacement may be necessary in
the case of the leakage.
Figure 2. Roller supported pipeline inside a small tunnel.
Figure 1. Pipe-in-pipe configuration.
LNG_MARAPR_2013_91-96.indd 92 21/03/2013 15:11
LNG_MARAPR_2013_91-96.indd 93 21/03/2013 15:11
94 LNGINDUSTRY MAR/APR 2013
Roller supported pipe-in-pipe inside a small
tunnel
A retrievable subsea pipe-in-pipe system has been
developed with a small tunnel (e.g. a reinforced concrete
conduit) to host one or two transfer pipelines. Figure 2
shows the cross-section of a transfer pipeline inside a
small tunnel. The small tunnel extends from onshore to
a loading shaft. Stationary rollers are anchored at the
internal bottom of the small tunnel and used to support
the transfer pipeline. These rollers also serve as a means
for pulling the pipeline in or out. At the offshore end, a
vertical shaft extends from the seabed up to above sea
level and hosts a riser. The subsea pipeline is detachable
from the riser and can be pulled out for repair.
The system has strong protection and is also cost
effective. Moreover, with a free end offshore, the thermal
contraction (tension) in the inner pipe is shared by
compression in the outer pipe. The pipe stresses are
reduced by approximately 50% with some end
displacement. This arrangement allows nickel enriched
steel such as 9% nickel steel to be used for the inner pipe
without any bellows or expansion loops.
Comparison among systems
The four transfer systems discussed above are distinctive.
Their key features and costs are listed in Table 1. The
existing systems (either on trestle or inside a large tunnel)
are costly and require maintenance.
Table 2 lists the common risks, accessibility and
failure consequence for the four systems. The common
risks to an LNG transfer system are categorised in three
groups:
UV light/ageing and ambient temperature changes
caused by sunlight.
Ocean waves, storm surges/tsunamis, and high tides.
Third party damage, including intentional and
unintentional.
A risk-level is given based on a scale of 1 to 10, with 10
the highest level. The likelihood to failure is the summation
of the numbers above (i.e., overall risk). The failure
consequence here is defined as the likelihood to failure
divided by accessibility, and then normalised by the
minimum value.
As listed in Table 2, the systems inside a tunnel (either
large or small) seem to have the least consequence when
subjected to environmental and accidental loads.
Technology breakthroughs
for LNG transfer
Flexible loading arms
Conventional loading arms are made of rigid pipes and
swivel joints. With a supporting frame and balancing
weight, a loading arm is heavily weighted and costly.
The swivel joints may have leakage potential and require
maintenance and replacement of seals. On the other
hand, flexible loading arms offer simple connection with
LNG tankers, and are flexible enough to cope with any
tanker motions.
11
The flexible loading arms use cryogenic
hoses that typically consist of multiple layers of polyester
fabric and polymeric film, as well as inner and outer spiral
wound stainless steel wires. The outer wire provides hoop
strength and prevents bursting of the film under internal
pressure, while the inner wire prevents the film from
collapse. Flexible cryogenic hoses have been tested and
used for ship-to-ship transfer.
Highly efficient insulation
A widely used thermal insulation material is
polyisocyanurate (PIR) with a thermal conductivity
of 0.023 W/mk. This material is permeable to water
vapour and requires a moisture barrier, such as metallic
cladding. Under repeated extremes of temperature, some
seals in the cladding are likely to break loose, resulting
in moisture setting in. Maintenance is needed for the
insulation system.
Silica-based micro/nanoporous panels or blankets
have been developed for insulation. They include izoflex,
aerogel and nanogel with a thermal conductivity of about
0.01 W/mk. For the same insulation capacity, the
thickness of the insulation layer can be reduced by over
60% compared to PIR. With a pipe-in-pipe configuration,
the conventional vacuum technique has a thermal
conductivity of less than 0.01 W/mk. A combination of
the new material and vacuum in
the annulus has a long-term
performance with exceptional
low thermal conductivity.
Automatic vapour
removal
Typically, loading/unloading an
LNG tanker takes about 12 hours
and unloading frequency is
around twice per week. In order
to avoid repeated heating/
cooling, which leads to early
failure of a transfer system, it is
necessary to keep the system at
cryogenic temperatures during
idle periods. A conventional
Table 1. Basic features and costs
Trestle Large tunnel Small tunnel with
rollers
Direct burial
Material for inner
pipe
Stainless steel Stainless steel Nickel steel Invar (36% nickel
steel)
Configuration Single pipe Single pipe Pipe-in-pipe Pipe-in-pipe
Insulation PIR PIR Silicon based
material/vacuum
Silicon based
material/vacuum
Insulation
protection
Metal cladding or
polymer
Metal cladding or
polymer
Outer pipe and
tunnel
Outer pipe
Thermal stress
reduced by
Expansion loops/
bellows
Expansion loops/
bellows
End pipe
displacement
Low expansion
material
Maintenance Yes Yes No No
Cost (rank) 3 4 2 1
LNG_MARAPR_2013_91-96.indd 94 21/03/2013 15:11
HIGH
STANDARD
VALVES
FOR NON-
STANDARD
CONDITIONS.
WWW.ZWICK-VALVES.COM
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Braemar Engineering
Marine Engineers and Naval Architects
Specialists in the design, design review, plan approval and
construction, commissioning and survey of LNG Carriers,
LPG Carriers, Oil Tankers, Oil Product Tankers, Chemical
Carriers and vessels carrying bulk cargoes. The Offshore
Group specialize in Dynamic Positioning, Failure Mode and
Effect Analyses, GAP analyses and ASOGs
Mechanical, Electrical, Chemical and Civil Engineers
Specialists in LNG export/import terminals, Liquefaction,
Regasification, LNG redistribution and CNG/LNG Fueling
Projects.
UK Office:
Fullbridge Mill, Fullbridge
Maldon, Essex, CM9 4LE
Telephone: +44 (0) 1621 840447
Fax: +44 1621 840457
General Email:
maldon@wavespec.com
Website: www.wavespec.com
US Office:
9225 Katy Freeway, Suite 307
Houston, TX 77024
Telephone: +1 713 820 9603
Fax: +1 713 820 9319
General Email:
houston@wavespec.com
Website: www.wavespec.com
( formerly Wavespec)
(Braemar Engineering is a Division of Braemar Technical Services )
Visit Braem
ar
Engineering at
LNG 17 in April -
Booth #808 and at
OTC in May - Booth
#8840
LNG_MARAPR_2013_91-96.indd 95 21/03/2013 15:11
96 LNGINDUSTRY MAR/APR 2013
method is to circulate LNG with pumps through two LNG
lines that form a loop.
A loading shaft is typically located at 15 m deep water
while onshore tanks are located above the sea level. An
automatic vapour removal system has been developed
based on this elevation difference and highly efficient
insulation. With a high end at onshore tanks and a low
end at the bottom of the loading shaft, cryogenic liquids
flow down by gravity and boil-off gas (BOG) flows
towards the high end. With a small amount of LNG being
fed at the high end, this system is kept at cryogenic
temperatures.
This proprietary system eliminates the need for a
re-circulation line and pressurised circulation of LNG in
which pumping accounts for more than half of the BOG
during idle periods. When using a 30 in. pipeline in place
of two 24 in. pipelines, the amount of LNG vaporised
during the idle periods is reduced by 80%.
Relaxing LNG transfer system
Combining the pipe-in-pipe inside a small tunnel with
roller supports, flexible loading arms, and automatic
vapour removal technique, a proprietary relaxing LNG
transfer system has been developed.
12
Figure 3 shows
a flow diagram for this LNG transfer system during idle
periods. The transfer pipeline has a high end onshore and
a low end offshore. At the high end, there is a tee with an
upward port for the exit of vapour and a lower port fluidly
connected to a small LNG feeding line.
The transfer pipeline is anchored
onshore with the offshore end free to
expand/contract. Flexible hoses extend
from the free end to a storing seat above
sea level. During loading/unloading, the
flexible hoses are stretched out and
connected to a ship manifold. The
flexible hoses accommodate both pipe
end displacements and vessel motions.
The relaxing system has a double
containment transfer line, self-balanced
thermal forces between inner and casing
pipes. It reduces CAPEX and OPEX, and
minimises maintenance.
Conclusion
A conventional LNG transfer system on trestle is proven
to be satisfactory in general, but starts to face challenges
resulting from tsunamis and high tides. Among the systems
discussed, the subsea pipeline inside a small tunnel
seems to be favourable in terms of both cost and safety.
Technology breakthroughs in insulation, cryogenic hose,
and automatic vapour removal warrant a fail-safe and cost
effective solution for LNG transfer. The relaxing LNG transfer
system offers a viable option, especially for sites that are
prone to natural disasters and third party damage.
References
1. Smallwood, N., Advanced Cladding and Pre-insulation
Systems, LNG Industry, pp. 62 66, Autumn 2009.
2. Curtis, J., Vacuum-Insulated Pipe Vs. Conventional
Foam-Insulated Pipe, OTC 18701, 2007.
3. Takai, N. et al, What Happened during and after First
Quake and Tsunami Impact on Japanese Terminal,
LNG Journal, pp. 19 20, July/August 2012.
4. News Index, Leighton, LNG Journal, p. 13,
July/August 2012.
5. P&GJ Staff Report, 6000-ft Tunnel, LNG Unloading,
Pipeline and Gas Journal, June 1975.
6. Maekawa, K. A 21
st
Century LNG Terminal, Civil
Engineering (Journal), Japan Society of Civil
Engineers, Vol. 36, 1997.
7. Rankin, R. and Mick, M.B., Buried, Subsea Line
Advanced as LNG Alternative, Oil & Gas Journal,
14 November 2005.
8. Beike, D., Gibbons, F., and Stokes, E., Subsea
Cryogenic Pipeline-Defining the Next Generation
for LNG Loading: Analysis of New Technology vs.
Conventional Trestle System, OTC 20302, 2009.
9. Prescott, C.N., and Zhang, J., Managing Construction
and Stress in an Ambient Pressure Insulated 9% Ni
Subsea Cryogenic Pipelines, OTC 19824, 2009.
10. Cox, P., and Risi, R., How the use of Cryogenic
Piping can Reduce the Impact of LNG Transfer
Terminals on Environment and Local Communities,
While Increasing Site Safety and Security, OTC
20223, 2009.
11. Rombaut, G., Peigne, A., Loisel, P., Cloirec, A.,
Machouat, F., and Maocec, D., LNG Trials of a New
16 Flexible Hose Based LNG Transfer System, OTC
19405, 2008.
12. LAE, Relaxing LNG Transfer System between Ship
and Shore, http://www.laengr.com/LNG Transfer.htm.
Figure 3. Flow diagram of a relaxing LNG transfer system.
Table 2. Risk and consequence
Trestle Large tunnel Small tunnel
with rollers
Direct burial
UV lights/ageing High (10) Low (1) Low (1) Low (2)
High tide/waves,
etc.
High (10) Low (1) Low (1) Low (2)
Third party
damage
High (10) Low (1) Low(1) Moderate (5)
Likelihood to
failure
30 3 3 9
Accessibility Easy (10) Reachable (8) Retrievable (4) None (1)
Consequence 8 1 2 24
A risk level is given based on a scale of 1 to 10, with 10 the highest level.
LNG_MARAPR_2013_91-96.indd 96 21/03/2013 15:11
MAR/APR 2013 LNGINDUSTRY 97
Analysing the weakest link
Shane Hale, Emerson Process Management, Rosemount
Analytical, USA, addresses the challenge of LNG
analysis with gas chromatography technology.
T
he use of gas chromatography
as an analysis tool in the
measurement and reporting of
LNG composition is both an industry
standard and a unique challenge.
The extremely low temperature of
LNG and the problems with keeping
it in liquid form make sample handling
complex, and the batch handling nature of
the operation complicates reporting. The
characteristics of the sample handling system
and the chromatography capabilities should
be designed specifically for LNG operations.
The operator needs to be informed and
LNG_MARAPR_2013_97-100.indd 97 21/03/2013 15:16
98 LNGINDUSTRY MAR/APR 2013
make careful decisions to ensure accuracy and long-term
operational efficiency, while also avoiding costly disputes
between the various stakeholders in the LNG fiscal
transactions.
Sample handling the
weakest link
The accuracy and reliability of LNG measurement is
critical since the ship loading and unloading operations
are highly time-sensitive and there are no second
chances. The cost of keeping a ship in port is astronomical
and delays due to measurement issues are unacceptable.
Failures in a poorly designed or maintained sample
handling system can result in inaccurate analysis and
even damage to the measurement technology. An easy
way to determine if the sample system is operating
correctly is to look at the stability of the measurement.
The composition of the LNG at the ship-loading arms is
usually very stable and the analysis results should show
this. In loading operations, the composition from a single
tank should be stable and large changes in composition
should only occur if the source of the LNG changes.
In offloading operations, the LNG in the ships tanks
should be consistent and the composition change will
be slight over the unloading operation as the pressure
in the ship tanks decrease and the lower ends in the
LNG boil off. However, if the composition reported
by the gas chromatograph (GC) changes significantly
from one analysis cycle to the next, it indicates that
the vaporisation of the sample is not consistent and
the analysis will not match the actual flowing LNG
composition.
In order for the sample handling system to deliver an
appropriate sample to the GC, the LNG must remain liquid
up to the point of vaporisation and must then be
vaporised uniformly into a single-phase vapour state. To
reach this single-phase state, the sample must first go
through a two-phase region in the sample handling
system (Figures 1 and 2). If the sample is transported
while in the two-phase region, the different velocities of
the liquid and gas phases will cause the entire sample to
change composition once it reaches the single-phase
vapour state. If the LNG starts to vaporise in the sample
lines, the nitrogen and methane will boil off first and
produce pockets of gas in the liquid stream that reach the
vaporiser at different times, resulting in varying
compositions. The LNG sample reaching the vaporiser will
consist of an unrepresentative liquid sample rich in the
heavier components, as well as slugs of methane-rich
vapour. The vapour sample leaving the vaporiser will be
inconsistent, with dramatic variations in composition. This
Figure 1. LNG phase diagram.
Figure 2. Example of LNG sample handling system.
LNG_MARAPR_2013_97-100.indd 98 21/03/2013 15:16
faulty sample then goes into the GC and sample cylinders,
and produces an incorrect analysis.
Using an accumulator to reconstitute the sample
immediately after the vaporiser can help address some of
these challenges, but it can only correct for small
fluctuations. If there is substantial vaporisation in the
sample lines, then large slugs of gas can actually insulate
the vaporiser from the LNG, once again resulting in the
sampled gas being unrepresentative of the actual flowing
stream. Most modern installations use vacuum-jacketed
tubing from the sample probe to the vaporiser, which is
located within 7 ft (2 m) of the sample point to ensure the
sample remains in the liquid phase right up to the vaporiser.
Once the sample enters the vaporiser, there are
additional challenges to overcome. When the LNG
sample enters the vaporiser as a pure liquid, sufficient
heat must be added to the liquid sample to allow for over
600-to-1 expansion from the liquid phase to the gas
phase, without causing sample fractionation. Recent
advances in vaporiser design help address these issues.
Traditional water bath vaporisers are losing favour since
they exacerbate the gas pocket formation and are
relatively high maintenance. Vaporising regulators are
common in the process industry and attempt to perform
both the sample vaporising and pressure regulation
functions. However, they lack both the heating capacity
and volume expansion allowances required to do either
job well for LNG, resulting in inconsistent vaporisation
and selective fractionation of the sample. The more
effective approach is to separate the vaporisation process
from the gas pressure regulation function. The best
performing vaporisers are designed specifically for LNG
and flash a small liquid sample off quickly, providing very
little restriction and allowing the sample to expand over
600 times in volume. The outlet temperature of the
vaporiser should be monitored to prevent liquid carryover
in order to ensure proper operation. The sample enters
the accumulator after it is vaporised, and is then
pressure-controlled and sent for analysis to the GC.
GCs designed for LNG
When it comes to the measurement of LNG, the LNG
operator needs to be aware of specific GC capabilities
that will enhance accuracy and reduce operating costs.
LNG composition is similar to natural gas, but has unique
properties as a result of the process requirements
involved in chilling the feed gas to the low temperatures
necessary for LNG production. In pipeline gas, the CO
2

levels are often controlled to just under 2% by the
producers as this is the common tariff limit. However, the
CO
2
content in LNG is typically less than 50 ppm in LNG
streams and must be kept this low to prevent solids from
forming during liquefaction. The GC must be capable of
accurately measuring the CO
2
at these low levels and
FBM Hudson Italiana, established in 1941, is a worldwide leading manufacturer of Process Equipment for the Oil & Gas and Petrochemical sectors. Spe-
cialising in the research, design and manufacture of Air Cooled HE -Steam Condensers -Shell & Tube HE -HPHE Urea/Ammonia Process Gas Waste Heat
Boilers -Special Tubular Reactors.
FBM Hudson Italiana hold proven and trusted experience and, in the perspective of the ever growing global demand for LNG, have developed a new
modular concept in particular for Air Cooled HE.
FBM Hudson Italiana boasts its position as a leader in thermal design thanks to the optimisation of fans air side performance (i.e. different blades, linear
or twisted blades, etc.) along with the optimisation and integration of steel structures, strictly in compliance with clients specic requirements.
The long construction time, as well as the high cost and/or limited availability of manpower at site, have prompted the introduction of pre-assembled units
to the market as a way to signicantly reduce the timing and logistics of plant installation.
Our extensive experience in this area allows us to tailor-make equipment according to clients specic objectives and by studying enhanced and innovative
solutions. This involvement has led us to improving performance in the evolution of modularisation, which aims at obtaining bigger and bigger modules by
extending the inclusion of pre-assembled components.
Therefore, not only the AFC modules alone, but also piping, instrumentation
and electrical wiring can now be considered as a whole, unique pre-assem-
bled module.
FBM Hudson Italiana, working closely with major EPCs, has met the chal-
lenge in moving to world-class projects, using advanced technology to power
an off the shelf design & technology modularisation concept.
This new concept leads to faster construction and faster LNG to market, while
also maximising eld construction by fostering a plug and play solution.
Moreover this enhanced concept facilitates the incorporation of additional
perfect-t modular LNG trains to add capacity to an existing LNG facility
to suit gas eld needs.
FBM HUDSON ITALIANA SpA
Via Valtrighe, 5 - 24030 Terno dIsola BG - ITALY
phone: +39.035.4941.111 - fax: +39 035 4941.341
www.fbmhudson.com
KNM GROUP
Modular LNG Proven & Trusted Experience
LNG_MARAPR_2013_97-100.indd 99 21/03/2013 15:16
100 LNGINDUSTRY MAR/APR 2013
should have a lower detectable limit (LDL) of better than
25 ppm.
All design characteristics of a GC used for LNG
measurement should be ruggedised for a marine
environment as the GC is usually located on the dock
close to the loading arms. In this environment, it is critical
that the analyser can hold up to the demanding salt-laden
environment while taking up as little space on the dock as
possible.
GCs used for LNG analysis should have an analysis
repeatability of at least +/- 0.25 BTU per 1000 BTU
(0.025% of energy value) to ensure accurate fiscal
accounting. To reach this level of performance, some GCs
are required to be housed in a temperature-controlled
analyser shelter; however, this significantly increases
costs, utility requirements and installation footprint.
Alternatively, some GCs can operate at this level of
performance across an extended temperature range
(typically 0 F 130 F/-17 C 55 C) requiring very little
protection from the elements (such as a sun-shield or
three-sided shelter), which results in a much smaller
installation footprint and lower utility and installation
costs. As a result of the critical nature of the LNG custody
transfer measurement, the end-user should require the
manufacturer to demonstrate the repeatability of the unit
purchased throughout the extended temperature range of
the instrument.
The software criteria
Analysis, reporting and communication software for
LNG gas chromatography systems must be specifically
designed for the application. GC software for laboratory
applications is too complex for most non-expert GC users
found in the field. The software for the online LNG GC
should be simple and intuitive for the plant technicians
and engineers to use effectively.
Unlike pipeline or process gas chromatographs that
run 24/7, GCs used for LNG ship loading and unloading
will only be run while the ship is in the dock. On a
pipeline, an operator can calibrate and start the system
locally since it will run continuously for long periods of
time. For LNG custody transfer applications, the GC
should be calibrated immediately prior to the ship
loading, the analysis cycle started at the beginning of the
loading/unloading operation and stopped at the end of
the load, and the calibration validated after the load. To
improve efficiency and save operator time, it is important
that the GC can be remotely calibrated, started, stopped
and validated from the control room. This means that the
LNG GC must be able to communicate and provide the
control mechanisms to host devices such as flow
computers, SCADA systems and distributive control
systems (DCS). The Modbus serial communication
protocol is most commonly used over either serial or
Ethernet communication links, because of the high
number of values GCs report. A recent development is the
use of Foundation Fieldbus for connection to the DCS for
better interoperability with plant-wide diagnostic
monitoring software with virtually no customisation.
Whatever the protocol for host system communication,
additional provision should be made to allow remote
diagnostics for the GC-specific diagnostic software. Such
capability allows highly trained personnel to analyse,
diagnose and maintain multiple devices from a central
location, often off-site. Reporting software must also be
very specific to LNG requirements and provide the batch
load averaging functions and LNG specific calculations
required by the custody transfer contracts.
Analysing the analysers
The measurement and reporting of the composition
and energy values has a significant impact on the fiscal
performance of LNG operations. Therefore, no operator
can afford to take short-cuts or use incorrectly designed
systems for the analysis of the LNG. While often
considerably more expensive than pipeline natural gas
custody transfer systems, the up-front investment in
the specialised LNG sample vaporisers and the LNG GC
reporting systems will be quickly returned in the form
of accurate and trouble-free analysis and reporting that
avoids disputes over the value or quality of the LNG
transferred.
Table 1. Typical compositions of LNG
Example A Example B Example C Example D Example E Example F
Methane 94.73% 92.3% 86.53% 89.94% 88.33% 91.8%
Ethane 3.8% 7.5% 12% 6% 6% 6%
Propane 1.17% 0.2% 1.33% 3% 4.3% 1.4%
iso-Butane 0.3% 0.06% 0.53% 0.5% 0.4%
n-Butane 0.08% 0.53% 0.5% 0.4%
iso-Pentane 0.37%
BTU 1063 1070 1124 1125 1154 1095
Wobbe index 1387 1391 1420 1420 1436 1404
LNG_MARAPR_2013_97-100.indd 100 25/03/2013 09:28
MAR/APR 2013 LNGINDUSTRY 101







G
o

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i
t
h

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e

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Mike Williams,
Invensys Operations
Management, USA, describes
the companys partnership with
Veris Inc. to develop and implement
advanced flow measurements.
T
he natural gas industry involves a complex network of production, distribution and delivery to
meet the growing global demand for more than 100 trillion ft
3
/year. Of the many procedures
involved in supplying this natural resource, flow measurement is a constant concern. From
the producer to the consumer, accurate flow measurement is the keystone for delivery and product
accountability.
The true test of a flow measurement device is its ability to repeat its published flow coefficient
within its accuracy band. Maintaining accurate flow measurements at the extremes of both high and
low flow rates is a significant challenge for the energy industry with enormous financial stakes.
Partnerships across industry players are crucial to developing solutions that meet this challenge.
LNG_MARAPR_2013_101-104.indd 101 21/03/2013 15:39
102 LNGINDUSTRY MAR/APR 2013
Demanding flow rates
Headquartered in Niwot, Colorado, US, Veris Inc.
manufactures and inventories more than 95% of the parts
to assemble its primary product line, the Verabar averaging
pitot flow sensor. With its solid one-piece construction
and bullet shape, the Verabar makes flow measurement
clog-free and precise. The solutions sensor shape is
designed to reduce drag and flow induced vibration. The
location of the low pressure ports also eliminates the
potential for clogging and improves signal stability.
With the development of a verified theoretical model
that predicts the Verabar flow coefficients, costly
calibration tests are avoided with increased flow certainty.
Some of its features include:
Built-in valves in the head of the instrument for
simplified installation and maintenance.
High accuracy (to 75%) and repeatability (1%) verified
at independent NIST traceable flow laboratories.
Velocity averaging higher accuracy and less
straight-run required.
Superior non-clog sensor design.
The aerodynamic bullet shape is less susceptible to
flow induced vibration and signal noise.
Installation and operating costs are lower.
The companys latest innovation is the Accelabar

flow
meter, which combines Verabar technology with Invensys
Foxboro differential pressure transmitters to produce
excellent operating ranges. A single Accelabar can monitor
the entire range of flow rates in applications that
previously required multiple meters. It is capable of
generating high differential pressures for measuring gas,
liquids and steam with no straight run requirements. The
Accelabar flow meter was designed to:
Have the ability to be installed anywhere in existing
piping systems without the costly requirement of
additional straight lengths of piping.
Work effectively for energy management applications
requiring wide rangeability based on seasonal usage of
steam, natural gas and chilled water.
Be ideal for skid mounted installations where space is
limited.
Require no maintenance or calibration requirements
when combined with a Foxboro DP transmitter.
Be capable of measuring mass or volumetric flow of
gas, liquids or steam.
Case study
A Veris customer in Minnesota, US, faced the ever-present
challenge of achieving cost savings and improving
operational efficiencies at its LNG storage facility. There,
temperatures regularly stay well below freezing in winter,
which can complicate regular operations. Extremely hot
summers make the surrounding environment equally
difficult to sustain consistent temperatures and pressures.
The company stores LNG in two 12 million gal. tanks
and uses gas-fired heaters to vaporise it as required to
meet customer demand. For most of the year demand is
low. However, during the coldest winter months gas
consumption jumps from 1000 to 60 000 standard ft
3
/hr,
representing an enormous flow rate change (a turndown
ratio of 60:1).
The plant had attempted to measure this flow rate
with a turbine meter sized for the maximum flow rate, but
could not get accurate flow readings at the low end of the
measurement range. This makes it impossible to
determine actual usage during the off-peak periods. In
addition to accuracy limitations, turbine meters have
moving parts that wear and require expensive
maintenance. When deciding on the best possible
solution, given the unique conditions and requirements,
the plant operators carried out due diligence and
analysed all possible options.
One such option was using a differential pressure (DP)
transmitter with an orifice plate a flow measurement
method commonly used in the gas industry. But given the
wide span of flow rates, a single meter could not
accurately measure the high and low extremes. Use of
multiple meters proved too costly with the required
bypass manifold piping, valves and complete monitoring
electronics necessary to allow seamless changeover
between meters.
Another option was to change the orifice plate sizes
seasonally to measure widely changing flow rates.
However, this approach involved intensive field labour in
the plants severe weather conditions for manual
changing of the plates and rearranging of the transmitter.
The solution was found in the Accelabar flow meter
developed by Veris Inc. that incorporates Foxboro d/p
Cell

transmitters. It features a Veris-patented toroidal


nozzle design with Verabar flow rate measurement
technology. The nozzle provides a straight run settling
distance that accelerates and stabilises the velocity
profile, and significantly increases the DP captured by the
Verabar located within the nozzle. The result is an
accurate and predictable DP over a wide flow range. Figure 1. The Veris Accelabar.
LNG_MARAPR_2013_101-104.indd 102 25/03/2013 09:29
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LNG_MARAPR_2013_101-104.indd 103 21/03/2013 15:39
When designing this system, Veris turned to Invensys, a
long-time technology partner, to leverage its expertise in DP
transmitters. For this application, the two companys
combined their technologies in one flowmeter to achieve
excellent operating ranges.
The Foxboro IDP50 Premium Performance d/p Cell was
selected for this application, combing two complementary
and effective solutions. Foxboros transmitters have grown
considerably since 1948, when it invented the first d/p cell
transmitter. The Foxboro IDP series intelligent two-wire
transmitters now includes a complete offering of
measurement ranges, static pressure ratings, materials,
analogue and digital communications and premium
performance.
The IDP50 features improved characterisation and
compensation techniques to achieve accuracy and
resistance to environmental effects over a wide
measurement range. Two sensor selections are available
within the IDP50 group, one with an upper range limit (URL)
of 1000 in H
2
O, and the other with a URL of 200 in H
2
O.
Both selections are accuracy rated 0.025% of span, for
spans as small as 1/10 of maximum span and no more than
0.05% of span, even for spans as small as 1/80 of
maximum span.
Due to the wide range of flow rates in this natural gas
application, the engineers chose to use two high-accuracy
IDP50 transmitters, one to measure DPs from 302.8 down to
2.5 in H
2
O with 0.025% of span accuracy, and the other to
measure DPs from 2.5 down to 0.34 in H
2
O (and ultimately
even lower) with 0.050% of span accuracy.
Expectations exceeded
The Veris Accelabar flowmeter with Foxboro IDP50
transmitters is installed in the LNG plant in a pipeline with
no straight runs, with valves, strainers, and pipe expansions
and reductions ahead of it. Even in this demanding
configuration, it is meeting all performance requirements.
The system provides flow rate measurement accuracy
of 0.75% over the entire 60:1 flow operating range and
accurately measures flow rates with turndowns as high
as 150:1 (from 60 000 standard ft
3
/hr all the way down to
400standard ft
3
/hr).
Veris and Invensys jointly took performance responsibility
and gave the customer a five-year performance warranty.
Finally, because both the Accelabar and the Foxboro
IDP50s have no moving parts to wear or seize, maintenance is
minimal another key priority for the customer. Moreover,
from the perspective of the plants day-to-day operations, the
natural gas supplier has found that the flow metering system
is user-friendly and easy to operate.
The LNG industry requires readings to be as accurate and
reliable as possible, given their critical impact on business
decisions and ultimately, profitability. To the LNG provider,
this has translated into improved material accountability and
lower operating costs, both contributing to reduced overall
maintenance and improved business performance.
LNG_MARAPR_2013_101-104.indd 104 21/03/2013 15:39
O
ver the past decade, companies have been using unconventional drilling technology
to extract gas and liquid from the readily available shale formations in North America.
As the industry gains experience, the production rates continue to rise based on
better use of technology to locate resources and to decrease the time from exploration to
production. The use of technology is allowing operators to manage their drilling teams more
efficiently, helping to drive down their investment in each well.
This rapid build-up of both gas and liquid wells has resulted in an abundance of natural
gas, driving the price of natural gas in North America to an all-time low. With the abundant
supply and favourable reserve estimates, the global market is driving many companies to
develop projects for the export of LNG from North America. The slate of proposed and
potential export terminals includes grassroots land based projects, floating facilities and the
addition of liquefaction processes to existing gasification operations. These LNG liquefaction
projects are being justified on a perceived market pricing gap and continued overseas
demand.
PARTNER UP
Greg Hallauer, Yokogawa Corporation
of America, USA, discusses the
importance of selecting a reliable
automation partner.
LNG_MARAPR_2013_105-110.indd 105 21/03/2013 16:08
106 LNGINDUSTRY MAR/APR 2013
If all of the projects currently announced are implemented,
with an estimated cost for each plant between US$ 4 8 billion, a
conservative projected total of US$ 56 billon could be spent from
2013 to 2020 on LNG liquefaction infrastructure. Initial business
partners who have announced LNG terminal projects continue to
develop relationships for supply and delivery contracts, as well as
financing for these projects. At the same time, they are required to
begin the permitting process, which does not appear to have an
established timeline under the current US energy policy. This
permitting process has a direct connection to partner
commitments and financing required to move forward with a
project.
To add to the overall feasibility and risk assessments, the
actual global market needs to be considered. Several studies have
recently been issued to somehow document all the variables
associated with exporting LNG from North America. These studies
and reports do not always align and highlight the potential
challenges of competing with existing LNG export facilities in the
Middle East and Africa, with more capacity coming online in
Australia. These documents also consider the ramifications of
introducing additional capacity between 2014 and 2020, based on
current conditions and what may happen to current LNG pricing.
Small but crucial
As these LNG projects begin to develop, owners will have
their hands full with many decisions. Added to this long list of
considerations is a rather small and often overlooked, but very
crucial component of these multi-billion dollar liquefaction
processes. This crucial component is the automation partner.
While it is a relatively small initial financial impact, it can
significantly help get an operation into production. Delivery
contracts require on-time startup and targeted production levels,
making the integration of automation not only a requirement
to liquefy natural gas, but a necessity to do so in a safe, timely
and dependable manner. When selecting a partner, it must be
recognised that the project is just the beginning. To successfully
deliver on long-term contracts, the owner will need a reliable
partner they can count on for the entire lifecycle of the facility.
Today, owners can find global companies that have experience
not only in LNG, but engineering, technology, safety and lifecycle
support. This experience will also bring with it an understanding
of the different automation requirements in liquefaction, carriers,
gasification and terminals.
MAC/MIV methodology
When it comes to execution, a proven method to reduce the risk
associated with an automation partner is to look for companies
that also have successful main automation contractor (MAC)
or main instrument vendor (MIV) experience. Engaging a
partner with these capabilities will help manage risk and lower
the overall cost associated with the project. The MAC project
execution method first introduced in the early 1990s for offshore
platform development has been successfully used to reduce
the implementation timeline, minimise human error and prevent
re-work. With the MAC approach, the automation partner is
brought in early in the planning and definition phase to support
the study and pre-design activities. By doing so, the knowledge
of the design process is transferred, alignment of the automation
with the overall project objectives is completed, and the partners
LNG experience is integrated with the EPC design. This process
also enables awareness in identifying areas for improvement in
the design and operability, with the goal of improving the owners
or partners ROI. The MAC approach keeps the automation
partner engaged throughout the implementation phase and into
the long-term operational phase.
LNG projects will transition from the planning and definition
phase to the implementation phase, which encompasses the
design, build/purchase, inspection/tuning and construction/
start-up activities. Since the MAC project approach included the
partner early in the planning process, owners can expect team
ownership from FEED through commissioning. Some of the
benefits in this stage include elimination of a bid cycle,
re-evaluation, re-design of FEED, reduced team size and a reduced
schedule. Other side benefits of maintaining the same team
members who are aligned with the overall project objectives are
cost reductions associated with mobilisation, improved interface
with the EPC, integrated automation procurement, improved
constructability and one total integrated factory acceptance
testing (FAT). The fact that it is not necessary to staff, de-staff and
re-staff also maintains the learning curve of members on the team,
increasing their productivity. During this phase of the project is
where an early investment in the use of the MAC process starts to
show its benefits in the risk/cost
trend. The typical automation project
risk/cost trend will start to accelerate,
potentially creating cash flow issues
for the project management.
Enhancing the
process
Along with the MAC/MIV
methodology, specific engineering
tools and procedures have been
developed by companies to enhance
this process. Offered with these
tools and procedures is a level of
standardisation combined with an
open and interoperable environment,
allowing for best in class technology
utilisation. Global engineering
standards and procedures, based on
proven project experience, increase
the flexibility of the owner and EPC
Figure 1. MAC risk/cost reduction trend.
LNG_MARAPR_2013_105-110.indd 106 21/03/2013 16:08
Over 10 years of operational
experience with LNG virtual
pipelines and as a major
equipment provider.
LNG turnkey partner for customized
solutions.
Pioneer in design and manufacturing of
LNG marine fuel tanks for giant open sea
ships.
LNG storage tanks up to 500 m
3
for vertical
and horizontal applications.
Optimized transport solutions with
international safety standards.
Worldwide cryogenic and LNG expertise
in North & South America, Europe, Middle
East and Asia.
High capacity vaporizers with ambient,
hot water and electric combined solutions.
First operational LCNG and LNG filling
stations for vehicles in Turkey and
deliveries to the international market.
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aritas@aritas.com.tr
See us at LNG 17
Booth Number 1657
LNG_MARAPR_2013_105-110.indd 107 21/03/2013 16:08
108 LNGINDUSTRY MAR/APR 2013
wherever they choose to execute the project. These standards
include specifications for components, such as process control
systems, emergency shutdown system (ESD) and fire and gas
system (F&G), console design, HMI, and alarming, to name a few.
Activities will also be included in the standards. Some of these
standards include fundamental work breakdowns per activity,
including descriptions, objectives, detailed steps to execute,
required input and delivered output. More specific engineering
tools will include plant knowledge libraries that contain
standardised configurations for LNG applications in liquefaction,
gasification, carriers and terminal automation. These should be
a part of the functional design specification and documentation
available from experienced LNG automation partners. These plant
knowledge libraries are compiled through professional experience
and records from projects executed over many years in the LNG
industry.
The plant libraries will cover all process facilities for a plant
type and allow for development of the plant master logic. They
help provide high quality optimum control from basic design,
improve engineering efficiency with fewer man-hours, and reduce
project schedules. The library contents may include elements such
as process models, graphics, I/O lists, functional specifications,
drawings, logic diagrams, and cause and effects tables.
Finding an automation partner with proven engineering and
execution experience is an important part of the selection criteria.
Whether it is C3MR, DMR, SMR or Cascade chosen for the
project, one should expect the deliverables provided by an
automation partner to be capable of working with all of the
process technologies available today.
Other important elements included in the deliverables are
awareness of technology, safety and lifecycle support. These will
be integrated with the engineering as part of the implementation
and hardware deliverables provided by the automation partner
working side-by-side with the EPC.
The automation architecture
The outcome from all the planning, design and engineering
built into the MAC process will provide an equipment list that
becomes the automation architecture.
The automation in an LNG plant stretches
across the entire facility, ranging from
the inlet facility, gas treatment, acid
gas removal, dehydration refrigeration
preparation, boil-off gas, LNG storage,
loading and of course liquefaction. The
same system also needs to be integrated
into the business to take complete
advantage of its capabilities. The
technology platforms most commonly
employed by an automation partner to
handle multiple trains are a distributed
control system (DCS); safety system
(SIS); ESD; F&G; smart field instruments;
advanced analytical packages; electrical
control systems; CCTV; UPS systems;
valves; vibration monitoring; asset
management; leak detection; advanced
process control (APC); sequence of events
recorder (SER); operator training simulator
(OTS); information management systems
and potentially more depending on their
role as the MAC. These systems and
packages are seamlessly integrated for
implementation into the project. They
provide the solutions platform from field
sensing, production control, production
management and on to corporate
management.
Safety
As part of any successful business
strategy today, safety has become a
top priority in all areas of a businesss
operations. This is true of the automation
partner as well, from safe working
practices to actual implementation
of safety related systems to fulfill the
functional safety management strategy
for an LNG project. An automation partner
should be capable of supporting the
development of hazard and risk analysis,
Figure 2. Functional design specifications.
LNG_MARAPR_2013_105-110.indd 108 21/03/2013 16:08
overall safety requirements, safety requirement allocation and
implementation of the safety related systems. The process
involves following specific steps outlined by standards such
as IEC61508, using integrated safety controllers as a hardware
platform, and implementing it to specific commissioning and
validation specifications. The safety controller performing the
safety inputs and outputs must meet certain SIL ratings defined
by hazard and risk analysis. Certification of these platforms is
often provided by organisations such as TV Rheinland. These
ratings and certifications are best met with ultra-high reliability
systems using multiple processors and hot-swappable I/O
modules with advanced diagnostics capability. Automation
companies have also developed technology allowing safety
data communication from the safety controllers over a common
control network to communicate with their process control
systems. This provides the plant with isolated safety control
where needed, but also makes this data available for viewing on
the process display. This once required two different interfaces
and displays, complicating the work load for operators during
critical events. A well implemented highly reliable system
Table 1. LP pump - I/O list example
Tag No. I/O type Description System Loop name Location Service Alarm/trip Fun bio
HS_LPP DO LP pump motor DCS LPP_PUMP MCC HS-LPP - MC-
XS_LPP DI LP pump motor status DCS LPP_PUMP MCC XS-LPP - MC-
II_LPP AI LP pump motor overcurrent DCS - MCC IIT-LPP H PVI
VI_LPP AI LP pump motor vibration (interlock) DCS - MCC VIT-LPP H PVI
PI_DSCH AI Discharge pressure DCS - Field PIT-DSCH L PVI
FIC_MINFL AI Discharge flow controller DCS FIC_MINFL Field FIT-MINFL LL PID
FV_MINFL AO Kickback flow CV DCS FIC_MINFL Field FV-MINFL - PID
FZSC_MIN DI Kickback flow CV close limit switch DCS - Field FZSC-MIN - SI-1
ZSO_DSCH DI Discharge shutoff valve open limit switch DCS XV_DSCH Field ZSO-DSCH - SIO
ZSC_DSCH DI Discharge shutoff valve close limit switch DCS XV_DSCH Field ZSC-DSCH - SIO
XY_DSCH DO Discharge shutoff valve DCS XV_DSCH Field XV-DSCH - SIO
www.herose.de
herose.com
HEROSE GMBH
23843 Bad Oldesloe
Germany
Phone +49 4531 / 509-0
Fax +49 4531 / 509 120
info@herose.com
With the development of the small-scale LNG facilities at sea and
on land HEROSE has become a major LNG valve player. Our
growing reference list highlights the new era in shipbuilding,
storage and transportation. All are benefting together with HEROSE.
Please ask for details!
INDUSTRY
ENERGY
CRYOGENIC
Innovation. Quality. Safety.
Small Scale
LNG_MARAPR_2013_105-110.indd 109 22/03/2013 12:10
110 LNGINDUSTRY MAR/APR 2013
platform brings with it increased plant availability and greater
opportunity for sustainable profitability.
Training simulator
Beyond the implementation of safety control, another helpful
automation deliverable being used by LNG operators today is the
operator training simulator (OTS). The OTS provides a dynamic
simulator for LNG processes that can be used in various ways.
By working with an automation partner that has plant libraries, it
becomes easy to develop plant master logic that can be used to
provide a complete virtual process of the LNG operations in an
online training simulator. This simulator combines the process unit
modeling with the control logic and allows for unit management
or critical situations to be loaded as training scenarios. Potential
benefits of using a dynamic simulator are the realisation of stable
and robust production, operator training tool based on processes
and a sustainable method to reduce the knowledge gap as
operators change over time. The thoroughly trained operators
and a well-engineered automation platform also provide more
confidence to operate at maximum capacity. This takes full
advantage of the assets capabilities.
Conclusion
The information presented in this brief article is not intended to be
a specific roadmap but rather to stimulate dialogue regarding the
selection of an automation partner and potential project execution
methodology. Regardless of which
method is chosen, it should always
include the operation phase. A MAC
methodology includes the planning
and definition, implementation and
operation phase. The operations
phase is really a way to sustain the
large investment associated with
LNG liquefaction process. A truly
experienced MAC provider will
discuss the entire lifecycle roadmap
from feasibility to decommissioning
or migration, so every aspect is
considered prior to commitment.
When spending US$ 4 8 billion
to develop an asset expected to
produce for years to come, it makes
sense to engage potential
automation partners with an open
mind, and expect them to be a
member of your team for the next
15 20 years.
Figure 4. LNG automation solutions platforms.
Figure 3. LNG tank area process overview graphic.
LNG_MARAPR_2013_105-110.indd 110 21/03/2013 16:08
D
uring the design of complex industrial plants or
platforms, the efficiency and reliability of unitary
process equipments has to be studied for the large
variety of operation parameters (flow assurance, stress,
transients, fatigue, corrosion, etc.). In most cases, full
experimental qualifications for severe conditions are not
available and one may need to explore and improve the
design of these equipments for non-standard uses with the
help of numerical simulations. Examples of problems and
equipments where such approaches with computational
fluid dynamics (CFD) and fluid-structure-thermal (FSI/CHT)
coupled physics can help include the design of onshore
tank farms and retention; analysis of the performance
and optimisation of the design of heat exchangers and
separators on the decks of FLNGs; sloshing and boil-off gas
(BOG) reduction, including the ship motion at sea; and acid
gas furnace treatments. The benefits of using multiphysics
simulations in process design and optimisation can also
C. Souprayen;
A. Tripathi;
G. Vaton; T. Grinnaert;
M. Leguellec; and
L. Ait-Hamou,
Fluidyn France, explain
how the LNG industry
can benefit from CFD
modelling in process
design, risk assessment
and mitigation studies.
LNG_MARAPR_2013_111-116.indd 111 25/03/2013 09:30
112 LNGINDUSTRY MAR/APR 2013
be found in the risk and impact assessment related to the
assemblies and layout of such equipments in complex
plants (onshore) or very complex, high congestion offshore
platforms or FLNG/FPSOs. In the consequence modelling
steps of a quantitative risk assessment (QRA), many accident
scenarios are identified among loss of containments,
toxic/flammable dispersion, fires and explosions. Most
of them need to be studied for the distance at risk, for the
resistance and design analysis of structures submitted to
thermal and pressure loads, for the inclusion of mitigations
solutions, and ultimately for the preparation of emergency
plans (evacuation and confinement). When simplified
calculations from semi-empirical tools (e.g. 2D, integral or
analytical models) are not precise enough, the application
of 3D CFD simulations to the problem can provide detailed
quantitative data. This article provides several examples of
such applications for leak, dispersion, explosion and structural
resistance of equipments in both onshore and offshore
situations.
Applications in process design
Case 1
In LNG plant design, liquefaction and regasification processes
are common. Large capacity storages need to be fitted
in difficult environments onboard FLNG units. With wind
loads, currents and waves, the various uncontrolled motions
of the platforms result in internal motion, sloshing and
increased heat exchanges that need to be carefully studied.
Similarly, the quantification of BOG is an important issue for
reliquefaction and downstream
equipments and energy budgets.
While semi-empirical estimates
are often far too conservative,
CFD modelling of the phenomena
at play can provide the optimal
quantification for loads (for stress
analysis) as depicted in Figure 1,
or for mitigation measures such
as LNG spraying in the reservoir
on loading. Simulations of such
two-phase flows with continuous
and dispersed interfaces are now
available in CFD tools for such
optimal design.
Another key function in LNG
plants is the separation and
cooling function required for both
gas purification and liquefaction at
cryogenic temperatures.
Engineering, procurement and
construction (EPC) competitors
and majors operating the
platforms search for innovative,
high performance heat
exchangers. Many designs
(geometry, material assembly for
both plates, tubes and insulations)
are to be studied with the help of
CFD codes coupled with structural
analysis (thermal transfer/
conduction). An example of
coupled finite volume (fluid) and
finite elements (thermal structure)
is provided in the optimisation of a
plate-fin heat exchanger in
Fluidyn-MP/CHT CFD code. A
delicate balance had to be found
in order to keep a reduced
pressure loss in the assembly and
to keep a strong enough
conduction in the steel plates
toward the tubes, despite the
creation of holes in the conducting
surfaces. For this coupled
fluid-structure interaction problem,
as simulated in Fluidyn-MP-CHT
Figure 1. Simulations in Fluidyn CFD codes. Left: large amplitude sloshing in a vertical
reservoir. Right: spray calculation from injection nozzle (design for LNG BOG mitigation).
Figure 2. Flow velocities (left) and temperature field (right) in a central layer depicting the
process of the heat exchanger.
Figure 3. Temperature load in the hot and cold chambers (left). Flow lines showing complex
patterns in the cold chamber toward exit pipes for further processing (right).
LNG_MARAPR_2013_111-116.indd 112 25/03/2013 09:32
-196 C
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E-Mail: t.reichel@ebkpipe.com
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Additionally, EBKs commitment to research and development has resulted in the availability
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LNG_MARAPR_2013_111-116.indd 113 21/03/2013 16:14
114 LNGINDUSTRY MAR/APR 2013
solutions, the simulation has to simultaneously solve the
(cold) gas and (hot) liquid flows with finite volume
techniques, the Navier-Stokes equations for the fluids and the
convective heat transfer to the steel and coppers surfaces,
and the heat conduction diffusion equation in finite element
techniques for the structures.
Figure 2 shows the results for flow speed and
temperature field on a central layer of the assembly. The
calculation included transient (and steady state) operations.
The respective performances of the several design
proposals can be quantified with minor modification on the
geometry, meshes and material properties for various
operating conditions.
Case 2
For the second case study, the process in the acid gas
treatment units needed to be studied and improved. This
applies a controlled combustion with several condensation
steps for the gas flow, resulting in sulfur recovery/separation.
In the multi-pass system, a hot reversal chamber is located
at one end of the furnace and separated with an insulated/
heat resistant multilayer wall. A cold chamber is collecting the
liquid/condensed sulfur. The initial design for the separation
wall and attachment on the furnace outer cylinder includes
heat resistant bricks, refractory concretes, fibre sheets and
steel.
Variations in operation conditions at warm-up, during acid
gas injection, and in gas compositions has resulted in several
failures and incidents related to the refractory part of the wall,
resulting in increased corrosion of the steel plate on the cold
chamber side.
Presumably, the thermal gradients developing in the
separation wall submitted to varying thermal loads from the
hot and cold chamber have resulted in mechanical
deformation and stress (both through dilation and
deformation) above the resistance limits for the bricks and
concretes. In order to confirm such a diagnostic and locate the
zones where maximum values for deformation and stress
tensor are observed, the problem has been simulated both in
transient and steady (maximum load) situations. It is an
aero-thermo-mechanical 3D problem where flow calculations
(in FV and Navier-Stokes equations frame) have to be
produced simultaneously with the conjugate heat transfer and
structural analysis in the sandwich layers and furnace
envelops and supports (in F.E frame). The
Fluidyn-MP-NS-CHT-FSI multiphysics software has been used
in order to simulate and analyse the behaviour and quantify
the stress tensor in every grid point of the structure.
Figure 3 shows the results for the diagnostic
phase, where thermal loads on the structure
surface and conduction/diffusion in the
materials are calculated simultaneously with
the flow distribution (the cold chamber).
Based on such calculations, the area for
deformation and large stress development are
studied for resistance analysis. The numerical
diagnostic shows similar maximum bending
and traction zones resulting on the several
rupture incidents.
Applications to
consequence modelling
in QRA and resistance of
critical safety equipment
In the process of layout qualification and for the regulatory
reports, QRAs are produced and iterated for risk reduction.
The examples given below outline the steps and benefits of
using CFD modelling for the precise analysis consequences
(e.g. toxicity, fire and explosion) on structural design and the
distances at risk. The sequence of events can be described as
follows:
Gaseous emission and/or pool formation and
evaporation.
Dispersion of toxic and/or flammable gas.
Jet or pool fire.
Deflagration and/or detonation of the flammable gas.
Structural breakdown due to the overpressure wave.
CFD is a valuable tool in assessing the consequences of
such a sequence of events as long as it features a good
atmospheric boundary layer, a good evaluation of the local
mechanical and thermal turbulence induced by the structures
and processes, and an accurate description of the
high-momentum jet. The CFD tools must provide an
appropriate model for combustion, turbulent and
flow/pressure, development in congested processes for the
explosion and accurate solvers with non-diffusive properties
for flow, reactive fronts and pressure fronts capture. For each
of these steps, examples of how CFD can be put to use are
detailed in this article. In the Fluidyn software series (with
multiphysics modelling centred around CFD), several
modules have been derived from the general simulation
platform and dedicated to risk modelling applications such as:
Fluidyn-Panache for the dispersion simulation.
Fluidyn-Ventfire for the simulation of combustion of jet
and pool fires.
Fluidyn-Ventex for the simulation of explosions in
confined and semi-confined spaces.
Fluidyn-MP-FSI for the resistance analysis of structural
design, with a coupling between pressure load (in the
fluid, FV solver part) and stress and deformation (up to
resistance thresholds for the FE structure solver part).
Flammable/toxic gas
dispersion
Offshore platforms and FLNG units are complex structures
consisting of many layers and decks. The emerged part of the
Figure 4. Example of a 3D
geometrical model of an FLNG
unit (Fluidyn-Panache).
LNG_MARAPR_2013_111-116.indd 114 21/03/2013 16:14
platform is comprised of several working decks, where the
extracted products are separated and treated.
In addition, normal operations produce plumes from
vents and exhausts. High temperatures and fluxes are also
observed at the generator exhausts located at or very close
to the decks elevation. Moreover, the local wind flow and
the overall inner ventilation in the decks depend on external
direction, strength of the wind and (hot) air fluxes from
stacks and exhausts.
Therefore, to produce an accurate representation of the
plume expected from a gaseous jet source or from an
evaporating pool, a model needs to feature a good
atmospheric boundary layer, a good evaluation of the local
mechanical and thermal turbulence induced by the
structures and processes, and an accurate description of the
high-momentum jet.
Traditional and integral modelling for dispersion could
fail in this case because of the highly congested
environment in which an accidental leak is expected to take
place. The wind flow pattern could have complex patterns
that can result in the accumulation of flammable gases in
unexpected parts of the decks. Given the complexity of the
layers, decks and processes, the modelling can only be
tackled with 3D-CFD simulations (Figure 4).
On the other hand, even if CFD takes into account the
main obstacles to the flow, the entire piping network cannot
often be modelled explicitly due to mesh size
considerations. In this case, the pipes and other processes
can be approximated by a porosity volume factor, defined
as the free volume over the entire volume and aspect ratio
parameters. For such numerical objects, local drag and
turbulence production/sink source terms are implemented
in the Navier-stokes solution. The ability to mix different
types of mesh results in an accurate description of the fine
details of release and obstacles on a domain that can cover
several hundreds of metres, or even several kilometres if the
gas cloud is to be followed once it has left the platform, e.g.
if it threatens a nearby platform.
CFD can also detail the characteristics of the release. For
high momentum releases, the Navier-Stokes equations with
a compressible regime governing the fluid behaviour are
solved from initial 3D wind conditions.
Jet impingements and further spreading on the deck,
along obstacles and through processes (treated as porous
media) are calculated explicitly. In case of a two-phase
release, models can be applied treating the two phases
present at the same time (liquid through pools and aerosols
or gas) and the subsequent phase change from liquid to gas
that could fuel the release for a long time.
The transport of the toxic and/or flammable gas by
convection (both forced and natural) and diffusion can
therefore be modelled using CFD and a detailed analysis of
the flammable cloud (concentrations between the
flammability limits), toxicity levels and doses, or even
visibility inside the plume, can be carried out in a straight
forward manner.
Fire, explosion and structural
integrity
In a worst-case scenario, the flammable gas can be ignited.
The difference between a jet fire and a deflagration is mainly
based on the ignition. If the ignition is immediate and occurs
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LNG_MARAPR_2013_111-116.indd 115 21/03/2013 16:14
116 LNGINDUSTRY MAR/APR 2013
right at emission, the scenario will turn into a jet fire and the
gas will be depleted at the origin of its emission. If the ignition
is delayed and a flammable gas cloud has the time to form, a
deflagration, or even a detonation (depending on the ignition
strength and the confinement of the cloud) will occur.
An example of the simulation of a jet fire is shown in
Figure 5. In this example, a turbulent combustion model
called the Eddy Dissipation Concept (EDC) and a soot model
based on the EDC were used. The turbulence model was the
two-equation k- model.
These congested environments are also the primary
location where an explosion could occur, first by providing
ignition points and secondly by accelerating the flame until it
reaches deflagration speed.
When assessing the risk associated with the accidental
dispersion of a flammable gas, the consequences of a
deflagration on the platform and its effects on the integrity of
the entire structure need to be assessed and faced.
The need for a numerical tool lies in the simulation of the
mechanical and thermal interaction between fluid (in which
the pressure wave will propagate) and the structure (in which
the stresses will be built at the wave passage). Fast, transient
phenomena involving compressibility of the air are efficiently
solved by the strong coupling between the finite element
method for the structural computation, and the finite volume
method for the fluid dynamics method. An example of the
deformation expected on a piping network and supporting
system is shown in Figure 6 for two distinct dates during the
front propagation.
Conclusion
The increase in computing power and the development of
efficient solvers and meshing methodologies have finally
allowed CFD to show its full potential in process design,
diagnostic and optimisation tasks, as well as in the risk
assessment strategies.
3D modelling based CFD tools can provide a valuable
input both in the design phase, to ensure that the layout does
not favour any avoidable and undue accumulation, and in the
risk assessment phase to provide input to the quantitative
risk assessment and emergency system survivability
assessment.
In addition to the simulations briefly described here, other
uses of CFD in offshore platforms and FLNG can be found.
One such use could be health and safety issues for
workers. Indeed, on an offshore platform, the vents and
exhausts of potentially toxic pollutants may produce poor air
quality and health/safety issues for workers and operations.
Air intakes (HVAC inlets), heli deck, doors to living quarters,
walkways and generator exhausts are possible locations
where a detailed analysis of pollutant concentrations should
be undertaken to reduce hazards. The concept of natural
ventilation can also be assessed.
On accidental scenarios, CFD can also help define the
most suitable locations to place monitoring stations, which
could warn of a possible leak on the platform as well as the
escape routes for the personnel, offering sufficient time to
escape or get equipped with respiratory devices in case of
the accidental release of toxic gases.
Figure 6. Deformation of pipes after a pressure wave (Fluidyn-Ventex) at two positions of the front propagation (not shown). The initial
state is shown in grey, with the maximum deformation in red.
Figure 5. Thermal plume (isosurface of temperature) (left) and thermal fluxes (isosurface as kW/m
2
) from a jet fire (Fluidyn-Ventfire)
(right).
LNG_MARAPR_2013_111-116.indd 116 25/03/2013 12:06
MAR/APR 2013 LNGINDUSTRY 117
S
imulation technology can, quite literally, be a life saver
for all industries where the safety stakes are high. Airline
pilots, for example, are able to practice emergency
landings and other potentially dangerous manoeuvres in a
simulator so they know exactly what to do if a similar incident
occurs when hundreds of lives are really at risk. Likewise,
simulation modelling in the LNG industry can test critical
processes, enabling engineers to try what if scenarios and
assess the impact.
Engineering simulation of 3D digital prototypes of plants,
machinery, equipment and individual products and their
components in the design office can play an equally key role in
the long-term safety and efficiency of the industry. The ability
to analyse and test the performance of a design, not just to
check how it works mechanically, but also to measure how it
will stand up to the subsea environment, harsh weather
conditions or other demands, can be an important preliminary
to routine safety and quality testing further downstream. It can
also be used to investigate and remedy the failure of existing
equipment.
It makes perfect sense to test a design in the virtual world
to the limits before it is built, especially in the oil and gas
industry where products are often huge, complex and
expensive. The serial design-prototype-test-redesign model
Colin Watson, Symetri, UK,
looks at how the cloud and
other advances in engineering
simulation could benefit the
LNG industry.
S
I
M
U
L
A
T
I
O
N
S
I
M
P
L
I
F
Y
I
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LNG_MARAPR_2013_117-120.indd 117 21/03/2013 16:44
118 LNGINDUSTRY MAR/APR 2013
can be long and costly and, for suppliers, can mean missing an
opportunity if competitors get their product onto the market
first. Simulation can help reduce costs too. By being able to
experiment within certain set parameters, designers can avoid
over-engineering or test the impact of replacing one material
with a less expensive alternative.
So, ideally all designers should be able to use simulation
tools as early as possible in the design process. However, until
now there have been some major barriers to this scenario.
Not just for experts
Computerised physics-based simulation has been available
for around 40 years. 3D finite element analysis (FEA) meshes
could be built manually and applied to 2D drawings. However,
the analysis of even a simple component could take a month or
more, and was often used only after a component had already
failed.
Not surprisingly, since then this response time has
improved considerably. However, until recently, simulation
skills were regarded as almost wizardry with intricate formulae
used to conjure up results. Consequently, in many quarters it is
reserved for certain projects and is carried out in an inefficient
serial design-prototype-test-redesign cycle, a time-consuming
and costly way of working.
There have been attempts to introduce simulation skills to
mainstream design engineers, but often these tools could only
carry out simple linear analysis on single components and the
experts dismissed them as over-simplified. Only those that
could force the technology to fit their needs were successful,
and typically this would exclude smaller companies, such as
specialist suppliers.
Meanwhile, engineers continue to make design decisions
every day. There are still many that make their choice the
traditional way, either by rule of thumb or by calculations
aided by engineering handbooks. There is much erring on the
safe side, which often means wasted materials for the
manufacturer and higher prices for the end user.
So what is changing this situation? Steady technological
progress means that the factors are now all in place to open up
the world of simulation to a far wider market, enabling firms of
any size to take advantage without a substantial capital
investment.
The first of these was the growth of digital prototyping.
Now, 3D models can be created that not only look like the real
thing, but also act like it too with the utmost accuracy.
The next step forward was the integration of simulation
tools within mainstream geometry creation software. For
example, the 3D geometry that enables digital prototyping
can, in most cases, be used by the automatic meshing tools in
finite element analysis (FEA) software. Further analysis tools
such as computational fluid dynamics (CFD) have now also
been added
Working with integrated CAD and simulation tools enables
associativity; that is, when the model is changed, the FEA
model and analysis are revised accordingly. This immediately
opens up the ability to experiment with different design
variants, without going through a lengthy updating process
throughout the entire design and documentation process.
In the past, some firms have hesitated before integrating
engineering simulation into the design process because of
perceived costs and delays associated with lengthy training
processes. However, integrated CAD-simulation tools have the
same user interface, making them relatively straightforward to
learn. Users can begin with mainstream FEA analysis and then
later expand their skills to include CFD, dynamic simulation and
mechanical event simulation (MES).
When mesh generation is automatic, the only thing the
user needs to do is to select the material from a digital library,
define the supports of the structure and apply loads to the FEA
model. Point, line or surface loads are defined in a graphical
environment, directly within the familiar CAD software. The
FEA analysis is started just by clicking a button and in a few
minutes the results are displayed.
Colour-coded models identify areas and levels of stress,
and can be manipulated so that they can be inspected in detail
from every angle. Potential problems can be rectified on screen
and with a further click the model will be revised to reflect
these changes.
Often there are multiple physical effects interacting
simultaneously. Integrated solutions automate the transfer of
results among multiple analyses. For instance, the forces
resulting from a dynamic simulation can be used as an input for
an FEA analysis. Close integration of this kind helps engineers
focus on product performance rather than the mathematical
calculations of advanced numerical methods.
But one of the main advantages of these integrated tools is
that simulation can be carried out far earlier in the design
process than previously. As a result, rather than being a check
at the end of the process when change might need to be kept
to a minimum to avoid further cost and delay, simulation
analysis results can now be used to influence the design.
Enter the cloud
However, there is a final piece of this particular jigsaw that
looks set to drive the widespread use of engineering simulation
more than ever before.
Figure 1. Simulation CFD 2012 hero image. Rendering of
an electronics enclosure with infrared thermal profile and flow
lines. Designed in Autodesk

Inventor

software. Simulated in
Autodesk

Simulation CFD software.


LNG_MARAPR_2013_117-120.indd 118 21/03/2013 16:44
LNG_MARAPR_2013_117-120.indd 119 21/03/2013 16:44
The mobile revolution followed by the emergence of cloud
technology has lifted the expectations in the consumer and
commercial worlds alike. The use of mobile technology has
affected every business sector in every part of the globe. The
relatively staid world of heavy engineering may believe itself
to be immune to the growing use of the cloud, but there are
good reasons why it may come to recognise that the use of
cloud-based resources is an unstoppable trend.
The first simulation in the cloud solution was launched onto
the market in 2012. The cloud means that instead of relying on
the conventional server-based set up, simulation tools can be
offered as a service, sitting on someone elses server.
Simulation can be very heavy on computing power and
testing multiple design versions can take time, which previously
may have required investment in high performance hardware.
However, when these tasks are transferred to the cloud with its
virtually infinite computing power, complex multiple simulation
tasks can be carried out in parallel, enabling engineers to study
a large number of design alternatives. The analysis of design
variations can run on a large number of computers in the cloud.
In almost the same amount of time that a single analysis would
take on a desktop, the cloud delivers results for all iterations
providing extensive scope for design optimisation.
Because cloud capacity is bought on a pay as you go basis
it can be far more economic and affordable. Rather than
involving high-level management meetings and presentations
to justify capital investment, it can be switched on by the
engineers themselves and paid for as an operating cost. There
is also no lengthy implementation process only the need to
purchase pre-paid cloud units, which give access to a range of
multi-physics simulation tools without the need for specific
licences
But perhaps one of the main benefits of cloud-based
simulation is that it can be accessed remotely from anywhere in
the world. This holds great promise for global operations
where, say, the design team are in the UK and the facility in the
Middle East. There is even a simulation app for iPads a
mechanical statics application.
Operations that have already adopted integrated CAD and
simulation tools have reported some impressive results. For
example, one manufacturer that used to outsource FEA
analysis, but now carries it out in-house using integrated tools,
says that it has slashed the time and cost for design validation
by 50 to 60%.
The advantages are already being seen before taking
simulation to the cloud. In future, using cloud-based tools such
as Autodesk Simulation 360, the savings are likely to be
multiplied further.
Some industries will benefit from this democratisation of
simulation more than others. Symetri believes there will be big
benefits for the LNG industry, for reasons of safety and risk
minimisation but also to help businesses become more
competitive.
There will always be room for experts, and simulation
specialists will always be needed for in-depth analysis on
certain equipment and machinery. However, adopting this new
generation of always on simulation tools will result in high
quality designs across the board.
www. ener gygl obal . com/ news
READ about the latest
developments in the LNG
industry on Energy Global
LNG_MARAPR_2013_117-120.indd 120 21/03/2013 16:44
MAR/APR 2013 LNGINDUSTRY 121
A
rguably, the hallmark of a civilisation is the creation
of standards. These may be standards of speech
such as language, or the standardisation of value
through money. With such standards, meaningful dialogues
and transactions can be held with your neighbour. This
article describes a problem that is common to standardised
industrial processes, with particular emphasis on LNG-
related fields, and suggests a process for resolving it.
James R.C. Garry,
Red Core Consulting,
Canada, examines
the efficacy of standards
governing the LNG industry.
LNG_MARAPR_2013_121-127.indd 121 22/03/2013 11:31
122 LNGINDUSTRY MAR/APR 2013
Standardisation: briefly
Almost everyone uses products that in some way have
been designed or built to a criterion established by a
standardisation body. In todays industrialised world it is
expected that when one buys an item, such as a length
of pipe, then that item will have been made and qualified
in compliance with a standard of some type. Material or
devices with higher cost, or greater impact on human and
non-human life, tend to be more tightly controlled. Such
is the case for tasks associated with LNG projects. The
feedstock is of high economic value and its physically
challenging properties make its movement and storage
a task that demands precision, accuracy, and robust
engineering margins. Efficient and safe procedures for
handling LNG are most easily achieved by following
the best practice in the industry, which means adhering
to standards that reflect the hard-earned lessons of
countless earlier engineers.
The origins of such standards in the modern era can
be traced to the founding of the International Bureau of
Weights and Measures (BIPM) in 1875. This marked the
first coherent attempt to forge international standards for
trade and research. Similarly, in other fields, agencies
arose to take on the role of curating and developing sets
of standards for electrical and chemical industries. The
last century saw the birth of three types of agency:
national agencies (JIS, BSI, DIN, etc.) that govern
standards for a nations industries, international corporate
entities such as ASTM, and governmental international
organisations such as ISO. The upper half of Figure 1
shows the familiar non-governmental standards agencies
to which contractors and persons can belong, and in the
lower half the more rarefied transnational agencies. These
are fundamentally a different class of organisation in that
their membership consists of national entities, drawn
from each member country.
It should not be thought that these agencies curate a
static collection of standards far from it. Standards are
regularly reviewed by an agencys members and it is
recommended that the interested reader take some time
to investigate how they might join a non-governmental
body and witness at first hand the evolution and growth
of a standard.
What can be standardised?
The simple answer is that the ingenuity of humanity is
the sole constraint. For example, ASTM International (the
American Society for Testing and Materials) currently
coordinates and maintains around 12 000 standards,
ranging from D3751 that describes how furniture polish
may be tested, to C0696 which specifies a protocol for
testing uranium dioxide pellets used in nuclear reactors.
The existence of multiple agencies, each coordinating a
myriad of standards, means that a manufacturer is faced
with a difficult choice, namely, which standards
should they choose? For a given property of
any item, such as the tolerances of a bolt, there
might be intra-company standards, national
standards, and international standards that all
address the same matter but in different ways
(Figure 2).
The LNG field has been relatively immune to
this multiplication of standards, as much of the
early commercial technology was developed by
a handful of countries. But the designer of, for
example, a static LNG storage tank is still
presented with over half a dozen standards from
an alphabet-soup of organisations, which all
ostensibly discuss the same thing, as is shown in
Figure 3.
The same problem arises for almost every
imaginable link in the LNG chain. While the
technology and engineering principles remain
the same, countries may adopt different models
to suit their own markets and manufacturers. But
much of this complexity is superficial.
Manufacturers exist in the ebb and flow of the
marketplace and the users of an item or a
material rapidly discover which standards are
the most useful for solving the problems that
they encounter. If a standard confers concrete
advantages to both the manufacturer and the
user then its use is likely to spread, and one
might liken this ideal situation to that of a
beneficial phenotype in a heterogeneous
population. Figure 1. Illustrating the two different classes of standardisation entities.
LNG_MARAPR_2013_121-127.indd 122 25/03/2013 09:34
2321 S. Pu||man Street Santa Ana, CA 92705
1.949.261.7533 acd@acdcom.com www.acdcom.com
LNG/LCNG fueling stations
Storage lling
Mobile delivery transfer
Hydrogen fueling stations
Vacuum Jacketed H|gh Pressure
Liquid Hydrogen
Liquefed Natural Gas
Mar|ne Supp|y System

With vaporizer

Vert|ca| Sea||ess
Liquefed Natural Gas

Submerged
Liquefed Natural Gas
LNG_MARAPR_2013_121-127.indd 123 22/03/2013 11:31
124 LNGINDUSTRY MAR/APR 2013
This idealised scenario relies on several assumptions,
namely:
The standards themselves are pertinent and are in
accord with legislation and the industrys best practice.
The users find that the standards give a real benefit by
reducing uncertainty in a design or process and so yield
savings of time or money.
The standards are adhered to by the manufacturers of
the item, or the test-laboratories that they employ.
The first point is the responsibility of the agencies that
maintain a given standard. If the standard is superseded by
developments in materials or methods, then its usage
withers and new standards may be created. One can point
to relatively few examples of LNG practices displaying such
evolution of fitter standards, given the comparative
youthfulness of the field.
We would hope that meaningful and legal standards
would deliver tangible advantages, otherwise what would
be their purpose? Before such benefits are realised it is
critical to ensure that the third assumption is valid that the
standards are implemented accurately. But how does one
prove that a testing agency is both honest and competent?
One might appeal to the use of accreditation services that,
for a fee, establish whether a given company is compliant
with standards such as ISO 9001 or ISO 17025.
*
But again,
that does not resolve the problem of verification. It simply
moves the burden of trust again to another entity
and the fact that a laboratory is accredited by an
agency does not automatically mean that it performs
as it ought to in the rough and tumble of the
commercial world.
One might argue that the problem of verification
is the customers concern alone. After all, as the
standards are readily available from the agencies
that coordinate them, surely the user of a tested
material could check that the delivered service or
item conforms to the necessary standards? If the
standard describes a bolts tensile strength or
geometry, this could be quite easy to check. But if
the standard described a process involving the
handling of cryogens, sensitive electronic
monitoring, and finely machined components, then
the end-user cannot be expected to verify that the
standard was adhered to. And that is the crux of the
problem. Entities, including standardisation
organisations (ASTM, ISO, etc.), do not and cannot
police the implementation of the standards they
control. Thus, the user is left with little choice but to
either accept what they are given, or take another
leap of faith and request that the item be retested by
a third-party test house. This, for those with a
classical bent, is neatly encapsulated by Agrippas
Trilemma. One either endlessly seeks confirmation
of test data by another test house (which is then
itself critiqued and tested), or one accepts without
reservation possibly flawed data, or one arbitrarily
decides at some point to stop asking questions.
This discussion may be thought to be overly
wrought. One has to employ trust at some point and
surely a commercial entity would be guilty, at most,
of unwittingly deviating from a standard? After all,
standards are written to be clear and unequivocal
and the presumption that a test house is deliberately
overlooking parts of a standard is but a short step
away from unwarranted and damaging paranoia.
Can standards be trusted?
Some years ago, Red Core Consulting made
enquiries about the state of thermal testing in the
field of LNG, and as its background is in cryogenics
and instrument design it knew what to ask for. There
are three main standards for determining the thermal
conductivity of insulators for cryogenic applications
and with little effort it found certificates from seven
Figure 2. A bolt and a small fraction of the standards that may apply to it.
Figure 3. An LNG tank designers dilemma.
LNG_MARAPR_2013_121-127.indd 124 25/03/2013 12:49
LNG_MARAPR_2013_121-127.indd 125 22/03/2013 11:31
126 LNGINDUSTRY MAR/APR 2013
laboratories, specifically three companies and four research
institutes. All seven certificates purported to adhere to
ASTM C177, a standard that describes a fundamental test of
an insulators thermal conductivity. The company purchased
a copy of the ASTM C177 standard and found that none of
the certificates were fully compliant. Of the seven entities,
one firms certificate failed to comply with 15 mandatory
clauses and yet that company promoted itself as being
ISO17025 accredited. The most common failure was the
presentation of data without uncertainty figures, giving
the client no way of judging how reliable their thermal
conductivity data were. This is not a trivial matter. Telling
a machinist that you want a length of steel rod cut to be
exactly 50 mm long elicits a very different reaction (and
cost) than telling them that it can be 50 +/-5 mm.
A more pertinent example for the LNG field would be a
lack of uncertainty data for the thermal conductivity of a
storage vessels wall material. Boil-off-rates (BOR) for
mid-size LNG tankers and storage tanks are not insignificant,
and can be of the order of 0.1% by volume per day of use.
The uncertainty in BOR is directly proportional to the
uncertainty in thermal conductivity of the vessel walls, which
is dominated by the performance of the insulation. But what
client would accept a predicted BOR figure without a sense
of how accurate it was? Should one assume perfection in the
data? Or perhaps a 1% error?
**
Maybe 10%? Red Core
Consulting knows of at least four laboratories that cannot
tell you. With the present softening of gas prices there
should be little acceptance of such ambiguity in the
performance of a critical component such as cryogenic
insulation. The whole LNG economy only works because
there is a sufficiently well understood performance margin in
the transportation and processing systems for profit to be
realised. An unspecified certainty for any item in an error
budget should not be acceptable as it exposes the user of
those data to a risk of unknown magnitude. However, the
utility of uncertainty budgets in forecasting is not universally
recognised in large-scale engineering and Red Core
Consulting suspects that many firms consider such matters
to be needless frippery.
Without a widespread recognition of the need for
uncertainty data, duplicitous or incompetent entities can
prosper. Standardisation agencies have no protocols for
admonishing failing laboratories and customers have no
recourse against the purchase of services from a
non-compliant laboratory. In serious cases, the
non-compliance might be treated as fraud and civil laws might
be invoked; such cases are not as rare as might be thought.
1,2,3
This situation is not desirable, but it can be changed. This
article presents a three-part scheme that puts the customers
interests first, and which places only a minimal burden on
the test house and the relevant standards agency.
Prevention a step towards a
cure
This scheme is not a panacea, but it offers a path by which
end-users can have contractually-supported certainty as
to how the work that they are paying for was performed.
Firstly, it is proposed that where practicable, committees of
standardisation agencies should promote the inclusion in
their standards of a clause similar in nature to that found in
ASTM C177; []where deviations from the specifics of the
test method existed in the tests used to obtain said data,
the following statement shall be required to accompany
such published information: This test did not fully comply
with following the provisions of Test Method C177.
This statement shall be followed by a listing of specific
deviations from this test method and any special test
conditions that were applied.
With such a clause in place a company that performs the
test but deviates from the standard must state that fact to
the prospective customer.
***
By itself, deviation is not a
negative criticism of a laboratorys work; the customer may
request non-standard processes or there may be other
circumstances that make it unavoidable. But at present it
appears that one can deviate from a standard without having
to report that fact.
Secondly, customers who employ a company to perform
a test should be willing to ask the company for evidence as
to how they implement a given standard. This gives the
customer visibility of the mandatory stages of the test, and
provides insight about the chosen laboratorys methods.
Thirdly, to complement the previous point, companies
performing standardised tests should prepare and maintain
a document that shows how they implement the mandatory
features of a standard.
These three points by themselves do not prevent
fraudulent transactions, nor do they add value or
competence to a test houses activities. But these
considerations would force a test house to make clear,
documented, and unequivocal statements that can be
referred to in a contract. A company that adheres to an
international quality standard, such as ISO-9001 or
ISO-17025, would have their critical processes documented
already. One would hope that the effort needed to build a
convincing fake explanation of a tests implementation
would be less than that needed to actually perform the task.
Any one of these measures can be independently
introduced and would go some way to improving the quality
of reporting in the field of industrial testing.
References
1. Testwell Laboratories, Inc. vs. New York City
Department of Buildings, 7 December 2010.
2. New York City Department of Buildings vs. Stallone
Testing Laboratories Inc., 26 August 2009.
3. Schneider, K., Faking it: The Case Against Bio-Test
Laboratories, The Amicus Journal, pp. 14 26,
Spring 1983.
Notes
* The ISO 17025 standard is somewhat like ISO 9001, in
that it is designed to help maintain the quality of a test
laboratorys work.
** Typically, uncertainties presume Gaussian distributions
and are quoted such that 68% of the data fall within that
quoted range the one sigma error range.
*** Surprisingly, clauses of this nature are extremely rare in
ASTM and ISO standards. Of the dozen or so standards
examined by Red Core Consulting, none but ASTM C177
has such a requirement.
LNG_MARAPR_2013_121-127.indd 126 25/03/2013 09:36
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