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HydrocarbonProcessing.com | JANUARY 2014
LUBRICATION PRACTICES
Increase equipment reliability
with better lubrication
systems and fluids
PLANT DESIGN
Rethink design margins in
major equipment specifications
REFINING DEVELOPMENTS
Improve temperature
and viscosity control
for unit operations
SPECIAL REPORT:
Natural Gas
Developments
Select 60 at www.HydrocarbonProcessing.com/RS
Cover Image: Qatargas LNG loading at Ras Laffan Industrial City. In Qatar, where Total has had operations since 1936, the company holds equity stakes in the
Al Khalij field, the NFB Block in the North field and the Qatargas 1 liquefaction plant. Total also owns 16.7% of Qatargas 2 Train 5, which started production in 2009.
Photo Courtesy of Total/Thierry Gonzalez.
JANUARY 2014|Volume 93 Number 1
HydrocarbonProcessing.com
SPECIAL REPORT: NATURAL GAS DEVELOPMENTS
37 Consider new designs for offshore LNG regasification terminals
A. Bulte
45 Choose the best refrigeration technology
for small-scale LNG production
T. Kohler, M. Bruentrup, R. D. Key and T. Edvardsson
55 The ethane addiction: How long will the US advantage last?
J. Wanichko
57 From LNG imports to exports:
Process safety and regulatory challenges
J. Chosnek and V. H. Edwards
BONUS REPORT: LUBRICATION PRACTICES
61 Update on lubrication systems
H. P. Bloch
65 Control moisture in wetted rotating equipment
M. Barnes and D. Morgan
67 Improve quality of lubricating fluids via filtration
K. G. Kroger
PLANT DESIGN
69 Wide design margins do not improve engineering
M. Toghraei
REFINING DEVELOPMENTS
73 Decrease tube metal temperature in vacuum heaters
S. Roy, E. Bright and V. Ramaseshan
77 Optimize viscosity control in refining operations
L. Bellire, P. Burg, D. Chantereau and S. M. Stanton
SAFETY
79 Reliable gauges improve safety and reliability
J. Deane
PROCESS OPTIMIZATION
81 HCN distribution in sour water systems
R. Weiland, N. Hatcher and C. E. Jones
PROCESS AUTOMATIONSUPPLEMENT
P-87 Human-machine interfaces are the future of petrochemical refining
C. Foster
DEPARTMENTS
4 2014 Editorial Calendar
10 News
17 NewsTrevor Kletz Obituary
19 Innovations
93 People
94 Marketplace
97 Advertiser Index
COLUMNS
9 Editorial Comment
Chemical-grade operations
or not?
23 Reliability
Was that a failure
or just a repair?
27 Automation Strategies
ISA108 Intelligent Device
Management focuses on
work processes
29 Boxscore Construction
Analysis
Russian gas: The end
of a monopoly and the
beginning of a new era
33
Viewpoint
Small-scale GTL to transform
gas processing at oil fields
98
Water Management
Best practices for RO operations
10
37
4JANUARY 2014|HydrocarbonProcessing.com
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EDITORIAL
CALENDAR
*
2
0
1
4
*subject to change
MONTH SPECIAL REPORT HPI FOCUS
January
Natural Gas
Developments
February Clean Fuels
The Green
Refinery
March
Corrosion
Control
April
Petrochemical
Developments
New vs.
De-Bottlenecking
May
Maintenance
and Reliability
June
Process/Plant
Optimization
Energy
Efficiency
July
Refinery
of the Future
Changing
Refining
Economics
August
Fluid Flow
and Rotating
Equipment
September
Refining
Developments
October
Cyber Security
and Process
Control
Petrochemical
Update
November
Plant Safety
and Environment
December
Plant Design,
Engineering
and Construction
Top Projects
in the HPI
BEING FLEXITALLIC SAFE IS THE RESULT OF USING NEW MATERIALS
THAT BETTER WITHSTAND TEMPERATURE AND PRESSURE EXTREMES.
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Editorial
Comment
STEPHANY ROMANOW, EDITOR
Stephany.Romanow@HydrocarbonProcessing.com
Hydrocarbon Processing|JANUARY 20149
Chemical-grade operationor not?
INSIDE THIS ISSUE
17
HPI loses a safety pioneer.
In late October 2013, the HPI
lost a giant in the field of process safety.
Dr. Trevor Kletz was small in stature,
but huge in his thinking and philosophy
on process safety and inherently safer
process design and operations. Trevor
was an experienced engineer and an
influential teacher in many nations.
33
Viewpoint: Small GTL
plants becoming a
reality. Iain Baxter, business developer
director for Compact GTL, shares his
views on specialized small-scale
gas-to-liquids (GTL) technology.
This processing method has made
tremendous gains. Market opportunities
are unfolding for this new approach to
monetize stranded natural gas supplies.
36
Natural Gas
Developments.
The natural gas market is dominated
by upstream development in shale gas
production, particularly in North America,
and by midstream and downstream
progress in GTL and liquefied natural
gas (LNG) technologies and projects.
In the US and in natural gas-rich
countries, there is increased interest
in small-scale and mobile processing
technologies, especially for GTL and
LNG production. The January special
report features advances in technologies
and market developments for gas
processing and LNG.
60
Lubrication Practices.
Rotating equipment
experts investigate new developments
in lubricating systems for pumps.
Several case histories illustrate the
dos and donts for maintaining
rotating equipment under various
plant conditions. New best practices in
lubrication systems are reported.
The quality of transportation fuels has
evolved. Earlier, the fuel quality was based
on octane to power larger engines for
automobiles and cetane for commercial
trucks. As lead was phased out of gasoline,
new compounds, such as oxygenates, were
added to retain the power needed for gaso-
line engines.
More recently, transportation fuels
have undergone more changes to comply
with mandated environmentally based air
regulations. Among the targeted bad ac-
tors in gasoline and diesel is sulfur. Since
the 1990s, governments worldwide have
taken action to specify the composition
of transportation fuels, with particular fo-
cus on sulfur content. Believe it or not, just
20 years ago, gasoline sold in the EU had
a limit of 1,000 ppm (or 1 wt%) of sulfur,
and diesel sold in the EU contained 2,000
ppm of sulfur. Similar quality conditions
on transportation fuels existed in the US.
Much has changed in the last 15 years;
most developed nations have moved to a
much lower sulfur (< 50 ppm) content in
transportation fuels.
With such low sulfur levels in fuels,
the question arises: Are refiners produc-
ing chemical-grade transportation fuels?
What defines chemical-grade products?
In searching several resources, it is actu-
ally the purity level that defines product
grade. As there is no standard for the level
of impurities, technical-grade materials are
99.5% pure, which is a similar benchmark
for pharmaceutical materials.
Curiously, the quality ranges in the pet-
rochemical industry are wider. For exam-
ple, refinery-grade propylene materials are
50% to 70% propylene, with the remainder
as propane. The specifications become
tighter for processing applications requir-
ing chemical-grade propylene; the specifi-
cations tighten tremendously on propane,
to 5% to 10%. The highest purity level is
polymer-grade propylene, which is 99.5%
propylene and only 0.5% or less of propane.
Clean transportation fuels are not
chemical-grade products; they are poly-
mer-grade or pharmaceutical-grade prod-
ucts with regard to sulfur content.
The bright line. How much sulfur is too
much in transportation fuels? Western Eu-
rope, the US and Japan have enacted fuel
quality rules that have a bright line on sul-
fur content in gasoline and diesel. The rest
of the world is catching up. Developing na-
tions, such as China, India and Brazil, are
adopting Euro 3 and Euro 4 standards on
transportation fuels and initiating capital
projects to self-produce higher-quality fuels.
To meet the new standard for vehicle
emissions on carbon monoxide, hydrocar-
bons, nitrogen oxides and particulate mat-
ter for diesel, more advanced fuels will be
necessary. In the US, discussion on Tier
3 continues; this rule requires gasoline to
have a 10-ppm sulfur maximum limit. Since
2009, the EU market has required 10-ppm
sulfur content in gasoline and diesel. At
such levels, the sulfur content is 0.01 wt%.
Today, we casually use the term clean
fuels for transportation and marine fuels.
The thinking about transportation fuels
has changed. In 20 years, the refining in-
dustry has moved from traditional fuels to
exceptionally sophisticated fuels.
The cost to get to much lower sulfur
levels will be substantially higher than the
move from 1 wt% to 500 ppm of sulfur.
The first round of lower-sulfur-content fu-
els required the rationalization of refineries
in the EU and the US. Likewise, China is
shutting down many small teapot refiner-
ies to move forward with lower-sulfur fu-
els. Russia is also evaluating the number of
refineries to revamp for processing high-
quality diesel. This global shift to ultra-low-
sulfur fuels will impact the global merchant
market for transportation fuels. As fewer
nations will be able to accept higher-sulfur
content fuels, the players in the merchant
market will also shrink.
In a brief period, the global refining in-
dustry has progressed from a dirty busi-
ness to the same level of advanced engi-
neering as pharmaceutical companies.
|
News
US, Norway seek to improve CO
2
capture
The US and Norway have announced their commitment to support the
global carbon capture and storage (CCS) test center network. In a joint
release, the two countries affirmed their continued commitment to
enhance the development of technologies that will merge the need for
reliable and cost efficient power production with sustainable deployment
on a large scale to meet the worlds growing demand for energy.
Under the agreement, US Secretary of Energy Ernest Moniz and
Norwegian Minister for Petroleum and Energy Tord Lien will strengthen
cooperation between the test centers for carbon capture. The aim is to
accelerate the development of carbon capture technologies.
The eight founding members of the test center network are: CO
2
Technology Center Mongstad (Norway), National Carbon Capture Center
(Alabama, US), Southern Co.s CCS demonstration facility (Alabama, US),
J-Power (Japan), Enel Engineering and Research (Italy), E.ON (Germany),
Doosan Power Systems (UK) and SaskPower (Canada). Membership in
the network is open to any large-scale CCS test centers.
The CO
2
Technology Center in Mongstad, Norway.
Hydrocarbon Processing|JANUARY 201411
BILLY THINNES, TECHNICAL EDITOR
Billy.Thinnes@HydrocarbonProcessing.com
News
Atlantic Basin crude
production to impact
regional supply and
demand balances
PIRA Energy Group reports that the
growth in crude production in the Atlan-
tic Basin will have a profound impact on
regional crude supply and demand bal-
ances. Crude production growth is being
driven by the shale oil revolution in the
US and increased oil sands development
in Canada. The Atlantic Basin is broadly
defined as including the Americas, Eu-
rope, and Africa. According to PIRA,
refinery runs in these countries have de-
clined in recent years after peaking from
2005 to 2007, but they are expected to
slowly resume growth with increases in
the US and Latin America, more than
offsetting declines in Europe. However,
the projected growth in crude produc-
tion is much greater than the increase in
refinery runs. As a result, a sizeable crude
surplus will develop within the region,
and crude will be forced to seek markets
elsewhere, primarily in the rapidly grow-
ing countries in Asia.
These changes are already beginning,
with increasing volumes of African crudes
no longer imported by the US and instead
moving to Asia. Plus, the former Soviet
republics and Latin America are actively
seeking to expand sales to Asia, as are
Canadian producers, which are looking
to build pipelines to the Pacific Coast to
export their crude to Asia.
As the Atlantic Basin moves from
crude-short to increasing length, inter-
regional crude differentials will also shift
to allow greater movement of regional
crude to Asia and discourage imports of
Middle Eastern crude into the Atlantic
Basin. Consequently, crude prices will
be lower in the Atlantic Basin than in
Asia-Pacific for comparable grades. The
Brent-Dubai spread (a key measure of the
relative incentive to supply Asian refiner-
ies from the Atlantic Basin or from the
Middle East) will stay narrower than it
otherwise would have been.
PIRA models the theoretical Brent-
Dubai parity spread using a West African
swing grade, taking into account differ-
ences in refining values, freight costs, sul-
fur premium and market structure. The
historically observed spread was wider
than the theoretical parity spread by
$0.50/bbl on average from 1995 to 2010.
Then, in 2011, the observed spread grew
much wider than parity, mainly because
of the loss of Libyan light sweet crude
production. However, since 2012, the
spread has been narrower than the theo-
retical spread. PIRA believes that this nar-
rowing trend will continue.
Similarly, product prices will generally
be lower in the Atlantic Basin than in Asia-
Pacific. This will allow US refiners to cap-
ture export opportunities, as well as pro-
vide incentives for product exports from
newly built Middle Eastern refineries to
Asia-Pacific rather than the Atlantic Basin.
Future world energy
demand driven by trends
in developing countries
The US Energy Information Admin-
istrations (EIAs) International Energy
Outlook 2013 (IEO2013) projects that
growth in world energy use largely comes
from countries outside of the Organization
for Economic Cooperation and Develop-
ment (OECD). Energy use patterns for
countries inside the OECD are relatively
stable between 2010 and 2040 as primary
energy use is projected to grow by 0.5% per
year, roughly the same rate as population
growth in those countries. In non-OECD
countries, faster-growing economies and
changing habits in highly concentrated
populations drive significant increases
in energy use. Energy use in non-OECD
countries is projected to grow by 2.2% per
year, and the share of non-OECD energy
use is expected to rise from 54% of total
world energy use in 2010 to 65% in 2040.
Between 2010 and 2040, IEO2013
shows that primary energy use per capita
is expected to change little from its 2010
level of 196 million British thermal units
(MMBtu) in the OECD but grows from
50 MMBtu to 73 MMBtu per capita in
non-OECD countries (FIG. 1). In addi-
tion to already being home to most of
the worlds population in 2010, the non-
OECD countries are also expected to ex-
perience most of the worlds population
growth through 2040. Population growth
is most pronounced in African countries,
but energy use per capita is low across the
continent and is projected to stay almost
constant through 2040. India also ac-
counts for a large portion of world popu-
lation growthadding more than twice
as many people as expected to be added
in the entire group of OECD countries
between 2010 and 2040. Unlike African
countries, Indias energy use per capita is
expected to grow during the period.
History
Q
u
a
d
r
i
l
l
i
o
n
B
t
u
Projection
0
2005 2010 2015 2020 2025 2030 2035 2040
100
200
300
400
500
600
700
800
900
Non-OECD countries
OECD countries
Source: US EIA
FIG. 1. Projected world primary energy consumption.
12JANUARY 2014|HydrocarbonProcessing.com
News
In 2040, the total gross domestic
product (GDP), measured in purchas-
ing power parity (PPP), of non-OECD
countries is projected to be much higher
than the GDP of OECD countries, but
the amount of energy used per unit of
GDP is virtually the same (FIG. 2). At
the same time, the ratio of GDP rela-
tive to population remains much higher
in OECD countries. This higher GDP-
to-population ratio allows citizens in
OECD countries to spend more re-
sources on energy-consuming services
that provide productivity, leisure and
comfort, and keeps energy consump-
tion on a per capita basis much higher
in the OECD. As the economies in the
non-OECD countries continue to expe-
rience relatively fast growth, those coun-
tries will also be able to spend more for
energy-consuming services.
US EPA proposes 2014
renewable fuel standards
The US Environmental Protection
Agency (EPA) has proposed a reduced
quota for the amount of renewable fuel
that refiners must blend next year, yield-
ing to industry arguments that current
legislatively mandated targets were too
high. In a draft rule, the EPA proposed
the 2014 blend levels for cellulosic bio-
fuel, biomass-based diesel, advanced
biofuels and renewable fuels (TABLE 1).
For the first time, EPA has acknowl-
edged that the blend wall is a dangerous
reality that must be addressed to avoid
serious impacts on Americas fuel sup-
ply and would be harmful for American
consumers, said American Petroleum
Institute (API) President and CEO Jack
Gerard. While the agency took a step in
the right direction, more must be done to
ensure Americans have the choice of eth-
anol-free gasoline for boats and small en-
gines, and to bring their mandates closer
to reality on cellulosic biofuels, which do
not exist in commercial quantities. Ulti-
mately, Congress must protect consum-
ers by repealing this outdated and un-
workable program once and for all.
The American Fuel & Petrochemical
Manufacturers (AFPM) also responded
to the EPAs revised numbers by noting
that the agencys recognition of the blend
wall and the potential adverse effects on
consumers is a welcome step; however,
greater reductions in the biofuel mandate
are necessary if consumers are to avoid
all the detrimental impacts of the statute.
Additionally, the EPAs actions can only
be short-term in nature and point to the
need for Congress to work quickly in ad-
dressing the severely flawed and totally
outdated renewable fuel standard (RFS).
The fact that the EPA must issue a
waiverand will need to continue waiv-
ing the ethanol mandate under the RFS
in future yearsis strong evidence that
the program is broken, said AFPM Presi-
dent Charles T. Drevna. While we still
believe that even further reductions are
necessary and warranted, the EPAs pro-
posal acknowledges the adverse consum-
er impacts associated with the RFS. The
basic fact remains that the agencys ac-
tion is little more than triage applied to a
program that requires legislative surgery.
An OPEC history lesson
Organization of the Petroleum Ex-
porting Countries (OPEC) cartel mem-
bers meet twice year. These meetings
generate much fanfare and press cover-
age, as OPEC decisions affect the global
petroleum market. What is often over-
looked in modern media reports is the
history and structure of the organization.
The information that follows should pro-
vide context and perhaps help readers
win a trivia contest.
OPEC was founded in Baghdad, Iraq,
in September 1960 by five countries:
Iran, Iraq, Kuwait, Saudi Arabia and Ven-
ezuela. These founding members were
later joined by Qatar (1961), Indonesia
(1962), Libya (1962), the United Arab
Emirates (1967), Algeria (1969), Nigeria
(1971), Ecuador (1973), Gabon (1975)
and Angola (2007).
As with any cartel worth its salt,
OPEC has not avoided inter-organiza-
tion conflict. From December 1992 until
October 2007, Ecuador suspended its
membership. Gabon terminated its mem-
bership in 1995. Meanwhile, Indone-
sia suspended its membership effective
January 2009. That leaves OPEC with 12
member countries in 2014.
German chemical
companies yearn
for US presence
Germany is becoming less attractive as
a hub for chemical activity, with many of
the nations companies targeting the US
for new investment, according to a new
report released by the German chemical
industry trade group VCI.
German companies invested 3.2 B
in new chemical plants or expansions in
the US a year ago, up 54% from the prior
year. The US now accounts for 41% of
B
t
u
p
e
r
2
0
0
5
d
o
l
l
a
r
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2005 2015 2025
Non-OECD average
Non-OECD average
OECD average
OECD average
World average
World average
2035
T
h
o
u
s
a
n
d
2
0
0
5
d
o
l
l
a
r
s
/
p
e
r
s
o
n
0
20
10
30
40
50
60
2005 2015 2025 2035
Source: US EIA
FIG. 2. Delivered energy use per unit GDP (left) and GDP per capita (right) from a global, OECD
and non-OECD perspective.
TABLE 1. Proposed volume and range in 2014 for cellulosic biofuel,
biomass-based diesel, advanced biofuels and renewable fuels
Category Proposed volume* Range
Cellulosic biofuel 17 MM gal 8 MM gal30 MM gal
Biomass-based diesel 1.28 B gal 1.28 B gal
Advanced biofuel 2.2 B gal 2 B gal2.51 B gal
Renewable fuel 15.21 B gal 15 B gal15.52 B gal
*All volumes are ethanol-equivalent, except for biomass-based diesel which is actual
A wide range of vessel internals in down fow processes to
retain the often costly media and to provide a collection area for
the process fow across the entire vessel diameter or length
All assemblies required in a radial fow reactor vessel, custom
built to satisfy every installations needs
Scallops to meet the various conditions of your process and to
ensure best fow distribution, optimum mechanical resistance
and long service life
Expertise and global feld service from initial product design
through proprietary fabrication, inspection, testing, installation
and start-up
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AND SOLUTIONS FOR THE HYDROCARBON
PROCESSING INDUSTRY
o
w
Reduced
cycle
time
Time
Standardized compressor stations
One-of compressor stations
Improved
operability/
reduced
OPEX
2
1
3
FIG. 1. Standardization adds value to gas compression operations.
Patent registered for metal-seated ball valve
Extreme operating conditions with temperatures up
to 450C and pressures up to 420 bar require special
sealing technology in ball valves. Standard soft-seated
ball valves are not optimal to meet these requirements;
their plastic seals would fail. Metal-seated ball valves
overcome this problem.
AS-Schneider has entered the metal seated ball
valve arena with its new KM Series. The ball valve fea-
tures zero leakage, even under extreme operating con-
ditions, with respect to working pressure and tempera-
ture, and a smooth operation is provided.
These features are possible due to the Dissolution
ball valve design registered for patent protection. The
design offers an optimized distribution of forces and
loads, so they are only present where absolutely needed.
Select 5 at www.HydrocarbonProcessing.com/RS
20JANUARY 2014|HydrocarbonProcessing.com
Innovations
should be reviewed, prechecked and
approved by qualified construction
personnel to take into account the
scope of work, schedule, construc-
tion sequencing and layout.
Consistent construction and in-
stallation quality. Standardized
materials, complete bill of materials,
standardized prepurchase of materi-
als and consistent material stocking
by the client will allow the contrac-
tor to build a station quickly, with a
minimum supply of material.
Optimized site layout. This enables
ease of accessibility for construction,
maintenance and service.
Standardization of components
throughout the midstream sys-
tem. This allows the client to du-
plicate systems, thereby minimizing
spare parts inventory.
Total yearly component counts.
These are provided to optimize
component bid package prepara-
tion inquiries and purchases for
quantity discounts.
Select 1 at www.HydrocarbonProcessing.com/RS
Software enhances
project delivery
Intergraphs expanded Global Profes-
sional Services Consultancy and Delivery
Organization has launched the improved
Global Professional Services Methodol-
ogy (GPSM) to provide consistent and
predictable delivery results for projects
worldwide. By establishing best practices
and processes into a single methodology,
GPSM will provide a structured approach
for standard reporting and enhanced proj-
ect execution on a global basis.
GPSM is scalable based on delivery
complexity, and is also oriented to custom-
er alignment based on schedule and cost
control. There are six phases in GPSM,
with decision gates and clear deliverables
for better project governance. Quality con-
trol is a continuous process throughout
GPSM, ensuring accuracy of project docu-
mentation and high-quality deliverables.
The formal GPSM framework helps
streamline project execution and iden-
tifies potential risks early, reducing the
need for rework and delays. It also pro-
vides tools and capabilities for efficient
project delivery.
Select 2 at www.HydrocarbonProcessing.com/RS
EPA confirms crude
vapor pressure test
A new method for measuring the
true vapor pressure (TVP) of crude oil
is spreading quickly in the oil and gas in-
dustry. At the request of the American Pe-
troleum Institute (API), the US Environ-
mental Protection Agency (EPA) recently
confirmed the use of the ASTM D6377-
10 standard as an alternative test method
for the determination of the TVP of high-
VP crude oils.
As defined by the International Mari-
time Organization, the TVP, or bubble-
point vapor pressure, is the equilibrium
vapor pressure of a mixture when the va-
por/liquid (V/L) ratio is zero. A V/L = 0
can be achieved if a container is filled to
the top with crude oil. This condition is
typical for floating roof tanks, where the
roof is floating directly on the crude oil.
As clear as this definition seems, a
correct interpretation of the TVP term
always depends on the specification for
which it is used. In refining, the term TVP
often is used to reflect the specific condi-
tions of storage or transport. For example,
if a truck or a ship is filled 95% with crude
oil, and only 5% vapor space remains, the
vapor pressure at a V/L = 0.053 may be
referred to as TVP. Within US EPA Title
40 regulations, the term TVP is used for
a TVP estimate calculated from a D323
Reid vapor pressure (RVP) measurement
and the crude oils tank stock temperature.
In a letter dated May 28, 2013 and
published on its website, the EPA ac-
knowledged the broad use of the ASTM
D6377-10 standard for VP measure-
ment of crude oils. It confirmed the use
of D6377 as an alternative method for
TVP measurement of volatile crude oils,
as defined under Title 40 Code of Federal
Regulations, with the understanding that
crude oil samples are delivered pressur-
ized for measurement to prevent the evap-
oration of light ends, and that the TVP is
measured at a V/L = 4.
The ASTM D6377 method is versa-
tile. It allows measurement of the TVP at
various V/L ratios to reflect different tank
filling levels. Sandia National Laboratories
has used this bubble point/TVP extrapo-
lation method successfully. From three
D6377 measurements at different V/L
ratios, the TVP of crude oil at a V/L = 0
is extrapolated. The extrapolation func-
tion assumes that crude oil is composed of
three components: Very light gas compo-
nents (e.g., methane or nitrogen), interme-
diate volatility components (e.g., C
2
and
higher) and a non-volatile fraction.
Select 3 at www.HydrocarbonProcessing.com/RS
Partnership to make
synthetic rubber
from biomass
Axens, IFP Energies nouvelles (IF-
PEN) and Michelin have announced the
launch of a plant chemistry research part-
nership to develop and bring to market a
process for producing bio-sourced buta-
diene, or bio-butadiene.
In response to the need to find sustain-
able alternative sourcing channels for elas-
tomers, the BioButterfly process (FIG. 2)
will make it possible to produce more en-
vironmentally friendly synthetic rubber.
In addition to developing an innovative
bio-butadiene production process, the
three partners are committed to laying the
groundwork for a future bio-sourced syn-
thetic rubber industry in France.
Select 4 at www.HydrocarbonProcessing.com/RS
FIG. 2. The BioButterfly process to produce bio-butadiene.
Expanded versions of these items
can be found online at
HydrocarbonProcessing.com.
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We create
chemistry
that makes natural gas
love solutions.
BASF offers a broad range of technical solutions based on the appropriate
absorbent (solvent), adsorbent, and catalyst. Moreover, BASF supports its
customers in the design and operation of gas treatment plants by providing
process design and engineering support and a range of technical services
such as debottlenecking and process optimization, troubleshooting and
revamps, analytics, and training.
At BASF, we create chemistry for a sustainable future.
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Select 70 at www.HydrocarbonProcessing.com/RS
Hydrocarbon Processing|JANUARY 201423
Reliability
HEINZ P. BLOCH, RELIABILITY/EQUIPMENT EDITOR
Heinz.Bloch@HydrocarbonProcessing.com
Was that a failure or just a repair?
Purists among reliability professionals are sometimes con-
cerned about the accuracy of the measurement of the mean-
time-between-failure (MTBF) of an asset. There are many ways
to conduct this failure frequency rate assessment. FIG. 1 represents
a multi-site major refining company. This figure demonstrates
that the corporate reliability engineers are making reasonably
accurate affiliate-to-affiliate comparisons. However, some pet-
rochemical and refining companies make a distinction between
repairs and failures. As one engineer wrote, I have a philosophi-
cal question around the classification of repairs vs. failures when
tracking rotating equipment reliability. As I see it, there are basi-
cally two structures or philosophies: asset or component.
In the world of asset philosophy, one views the equipment
train as a singularity, and this is how it is being done here, where
I work. A motor and pump combination is a single asset. We
observe if the asset as a whole continues to perform its in-
tended duty, i.e., pumping product. As long as the asset moves
fluid, the asset has not failed. If a particular component fails and
needs to be replaced, the asset has not failed. For example, a
seal leaks; the action to correct the leaking seal is logged in as
a repair. After all, the asset continues to perform its intended
function. In this view, all seal leaks are considered repairs. Only
if the seal leak causes the asset to shut down (e.g., the seal blows
out), then it is classified as an asset failure.
In the sphere of component philosophy, an asset is seen as a
composite unit consisting of multiple and various components,
i.e., motor shaft, motor bearings, pump shaft, pump bearings,
impeller, wear rings, coupling, throttle bushing, seal, seal pot,
etc., and each has its own failure mode. While it is true that a
particular component may cease to perform its intended func-
tion and not prevent the whole from functioning, i.e., a small
seal leaking does not stop the pump from pumping, the asset
must still be taken offline to repair the defective component.
There will be an asset repair due to a component failure.
I believe the component philosophy is the superior form
of equipment classification as it pertains to rotating equipment
reliability. It gives my plant the ability to classify both asset and
components in their respective statistics or catalogs. Moreover,
it provides the benefit of seeing issues down to the component
level. The component strategy is helpful in identifying what
particular item(s) are causing all the problems.
Picking winning situations. This is an interesting view of
failure; however, it also shows how we can manipulate appar-
ently valid statistics. It is not possible to compare statistics
based on narrow definitions against those based on much
broader definitions. Sensible MTBF statistics aim for simplic-
ity. Therefore, some reliability engineers or professionals see
merit in making comparisons as long as they do not involve the
judgmental ingredient of questioning if and how a particular
component defect could have caused the asset to shut down.
For years, whenever a component was replaced many or-
ganizations have labeled this as a failure event. When first col-
lecting relevant statistics, these companies decided that only
two preventive/predictive action stepsdata taking and/
or performing scheduled oil changeswould escape being
called an equipment failure event. The main aim of the reli-
ability professionals in those organizations was to facilitate
comparisons based on facts, not on assumptions or projec-
tions. These best-practices organizations wanted to steer clear
of speculating if leaving a flawed component in place would
have led to an asset shutdown.
Counting maintenance interventions. A few years ago, a
major oil refinery on the east coast of England emphasized as-
set outage numbers. Individual process units competed with
each other to drive down their respective numbers. They did
so by performing lots of preventive actions, which primar-
ily included frequent oil changes. As a result, the refinerys
overall asset outage frequencies declined and bearing failures
declined. Some process units looked great, but only on paper.
The refinery soon realized that maintenance expenditures in
the good units were higher than in the bad units.
From then on, the refinery made it a practice to count main-
tenance interventions. An oil change is a maintenance inter-
vention. Counting maintenance interventions shifted the goals
from aiming for favorable statistics to optimized operation. This
change in benchmarking shifted more authority and attention
to the facilitys key reliability professional, whose job was to
look at plantwide bottom-line performance and long-term prof-
itability. When the optimized work processes and procedures
0.0 0
10
2007
A
n
n
u
a
l
n
u
m
b
e
r
o
f
p
u
m
p
r
e
p
a
i
r
s
,
t
h
o
u
s
a
n
d
s
M
T
B
R
,
m
o
n
t
h
s
2008 2009
Pump repairs per year Pump MTBR
60-month MTBR = 2,567 repairs/yr
2010 2011 Roll 2012
4,452
4,128
3,409
3,297
3,060
2,901 34.2
36.9
44.8
46.7
50.3
53.1
20
30
40
50
60
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
FIG. 1. Repair frequency and MTBF tracked by a major corporation
with over 15,000 process pumps.
24JANUARY 2014|HydrocarbonProcessing.com
Reliability
to extend intervals between interventions were outlined by the
reliability engineer, the organization finally listened.
The authors former employer treated the task of replacing
a $3 O-ring the same as a $2,150 impeller replacement. Vari-
ous plants or process units may have looked for opportunistic
repair dates, but, years ago, this company resisted making the
repair vs. failure distinction. There would have been concern
that one persons seal blow-out was another persons minor
leak. So, the quest was to consistently use simple statistics for
comparison purposes. As to the original question raised by the
reader, what he called repairs was included in MTBF.
For some unspecified reasons, certain industry segments
keep track of mean-time-between-repairs (MTBRs), as shown
in FIG. 1. While this metric could make ones MTBF look good,
the organization may no longer have the ability to compare itself
to competitors who lump things together in calculating their
MTBFs. Perhaps it does not matter much which calculation
method is selected as long as apples are compared to apples.
Gaming the statistics. Are statistics just a game? Thirty-five
years ago, the affiliate of a multi-national oil company peti-
tioned its corporate head offices that tweaking pump parts was
not really a repair. The decision from upper management was to
count repairs as a work event requiring equipment to be taken
into the shop. Field work did not count as an equipment fail-
ure. Not long after this decision, work was being performed out-
side of the shop as field cases. The parts were literally spread
out on a pallet right outside the shop. That affiliates great low-
failure report to corporate remained unaffected; the machine
had never entered the shop. It took a while before more realistic
heads prevailed. From then on, the managers in charge at cor-
porate headquarters reverted to listing as failures all incidents
where components had been replaced.
Aiming for failure avoidance. Reliability engineers must
make fact-based contributions, which add to the safety, reliabil-
ity, profitability and future viability of the enterprise. At best-of-
class companies, reliability professionals and subject-matter ex-
perts must effectively convey to their managers the exact steps
needed to achieve these goals. In many instances, quantification
and cost justification are performed; applying and having access
to key performance indicators will help. In short, reading, ab-
sorbing relevant training and networking among colleagues are
needed to make meaningful comparisons.
HEINZ P. BLOCH resides in Westminster, Colorado. His
professional career commenced in 1962 and included
long-term assignments as Exxon Chemicals regional
machinery specialist for the US. He has authored over
550 publications, among them 18 comprehensive books
on practical machinery management, failure analysis,
failure avoidance, compressors, steam turbines, pumps,
oil-mist lubrication and practical lubrication for industry.
He holds BS and MS degrees in mechanical engineering,
is an ASME Life Fellow, and maintains registration as a
professional engineer in New Jersey and Texas.
HERMETIC-Pumpen GmbH
info.hp@hermetic-pumpen.com www.hermetic-pumpen.com
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Select 72 at www.HydrocarbonProcessing.com/RS
Lewis
Pumps comprehensive
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trademark of Weir Engineering Services Ltd.
Select 94 at www.HydrocarbonProcessing.com/RS
Hydrocarbon Processing|JANUARY 201427
Automation
Strategies
PAULA HOLLYWOOD, CONTRIBUTING EDITOR
PHollywood@ARCweb.com
ISA108 Intelligent Device Management
focuses on work processes
Over the last decade, field instrumentation and analytical
chemistry device suppliers have made tremendous progress in-
corporating value-added functionality into intelligent devices.
This includes enhanced visualization and health monitoring
functionality to facilitate predictive maintenance (PdM). De-
spite these technological advancements, many companies are
not fully using digital device diagnostics to their best advantage.
Consequently, plant operational efficiency has not improved
significantly, nor have costs, due to device-related accidents.
To address this issue, the International Society of Automa-
tion (ISA) has recently formed a new standard committee,
ISA108, to characterize intelligent device management in the
process industries. The committee will define standard tem-
plates for best practices and work processes based on infor-
mation derived from intelligent field devices, including mod-
els and terminology, implementation guidelines and detailed
work processes.
Plant asset management system landscape. ARC defines
plant asset management (PAM) systems as hardware, software
and services that evaluate plant systems and equipment health
by monitoring the assets condition periodically or in real
time to identify potential problems before they can affect the
process or escalate to a catastrophic failure. Asset monitoring
is one set of applications falling under the asset performance
management (APM) umbrella; it also includes enterprise asset
management (EAM), mobility, reliability, enterprise resource
planning (ERP) systems and other information sources. These
include energy management system (EMS), sustainability, and
environmental, health and safety (EH&S) system.
APM systems provide a compelling case for reducing op-
erational costs while simultaneously improving operational
performance. APM leverages the power embedded in various
operations and maintenance applications to improve asset
availability and utilization within the collective operational
constraints of the enterprise. At present, the emphasis has been
on monitoring production assets. ARC research indicates that
approximately 75% of monitoring investments target produc-
tion assets. Most production assets involve moving parts that
are subject to wear and degradation. Vibration technology is
used extensively to monitor these assets.
The evidence indicates that automation assets are taking
a backseat when it comes to equipment health monitoring.
According to Ian Verhappen, co-chair of ISA108, More than
80% of smart instrument data is not being used or even con-
nected to an online data collection system. ARC believes that
this behavior is counter intuitive given that production asset
monitoring frequently requires additional external equipment,
while most automation assets already contain a high degree
of embedded intelligence. While the level of digital technol-
ogy implemented in field devices is evolving, particularly in
wireless transmitters, operational enhancements will not be
realized if organizations continue to underutilize the available
functionality or apply old work practices.
ISA108 Intelligence Device Management. Formed in
August 2012, the ISA108 committee is charged with defining
standard templates of best practices and work processes for the
design, development, installation and use of diagnostics and
other information provided by intelligent field devices in the
process industries. The belief is that, when intelligent devices
are properly applied and managed, maintenance personnel can
focus on the devices that actually require action when the data
indicate attention is necessary. Devices can provide detailed in-
formation on problems before a trip to the field is made. This
could result in significant reductions or elimination of periodic
testing and provide advanced warning of failures thus minimiz-
ing the effects on operations.
The scope of the committee will include recommended
work processes and implementation practices for systems that
utilize information from intelligent field devices and the peo-
ple who use them. Process templates by worker roles (such as
maintenance or operations) will be one area of research. The
committee will develop best practices for implementation and
models for the flow of information from devices through the
various systems that use this data.
Because no new technology is involved, the primary focus
will be on developing new work processes to match device ca-
pabilities. This will require a cultural change, which can be the
most tasking segment for implementation. The committee will
also target alarm management and rationalization for a risk-
based approach to alarms to alleviate fatigue. Intelligent device
data can make the distinction between operator or mainte-
nance alarms for action by these two groups as required.
PAULA HOLLYWOOD, senior analyst at ARC Advisory
Group, has been covering field instrumentation and
other automation technologies for over 30 years.
At present, she focuses on enabling technologies
and strategies for industrial asset performance
management. Prior to ARC, she held various technical
and marketing positions at The Foxboro Company,
Krohne America and Kentrol, Inc. Ms. Hollywood has a
BS degree from Northeastern University and an MS
degree from the University of Massachusetts in Boston.
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Hydrocarbon Processing|JANUARY 201429
Boxscore Construction
Analysis
LEE NICHOLS, DIRECTOR, DATA DIVISION
Lee.Nichols@GulfPub.com
Russian gas: The end of a monopoly
and the beginning of a new era
December 1, 2013 marked the begin-
ning of a new era for Russian gas exports,
as it saw the repeal of a 2006 law establish-
ing Gazprom as the sole exporter of Rus-
sian gas. Amendments to the gas export
law and foreign trade law allow other com-
paniesprimarily Novatek and Russian
state-owned Rosneftthe ability to sell
liquefied natural gas (LNG) for export.
Gazproms monopoly on gas exports to
Europe via pipeline was not touched.
The amendments are part of Russias
plan to double LNG exports by 2020
and grab crucial LNG market share in
the Asia-Pacific region. Russias overall
goal is to produce at least 40 million tons
per year (MMtpy) of LNG by 2020. This
volume would raise Russias global LNG
market share from 5% to 11% in just six
years. However, Russia is not without
stiff competition.
Australia has invested over $160 billion
(B) on LNG export terminal construction.
Forecasts show Australia overtaking Qatar
(which holds 31% of the global LNG mar-
ket share) as the worlds leading exporter
of LNG within the next decade. However,
spiking labor costs and cost overruns have
threatened Australias position.
Meanwhile, the US is planning the
construction of over 210 MMtpy of
LNG export capacity. Five LNG export
terminals have been approved by the US
Department of Energy, as of the time of
publication. Almost all LNG exports are
targeted for the Asia-Pacific region. Can-
ada is also developing its LNG export
portfolio. Multiple LNG export termi-
nals are planned on Canadas west coast
in British Columbia. In the Eastern Medi-
terranean, Cyprus and Israel will also be-
come LNG exporters.
In Africa, major gas discoveries offshore
Mozambique have the potential to elevate
the country to the worlds third-largest ex-
porter of LNG. Plans are in place to build
one of the largest LNG export terminals in
the world. Exports are destined for Asia
primarily India, China and Japan.
With the changing dynamics of natu-
ral gas exports, Russia must construct
LNG export facilities to compete on a
global scale. Direct competition from the
Middle Eastprimarily Qatar, Australia,
Africa, Canada and the USare all vying
to satisfy Asias growing gas demand. Rus-
sias proximity to Asian markets and large
gas reserves can help the country gain a
foothold on global competition.
Russian gas. Russia holds the worlds
largest natural gas reserves. Equaling al-
most 1,700 trillion cubic feet (Tcf), Rus-
sias reserves account for nearly one-quar-
ter of the worlds proven reserves. The
majority of the gas reserves are located near
the Gulf of Ob in upper western Siberia.
Known as the Nadym-Pur-Taz region, this
area includes some of Russias most pro-
lific production areasthe Medvezhye,
Urengoy and Yamburg fields. Gazprom is
also investing in other regions, such as the
Yamal Peninsula, Eastern Siberia, Sakhalin
and Shtokman.
Russian gas exports head primarily to
the Commonwealth of Independent States
and the EU via pipeline. Gas is also exported
as LNG through Russias only LNG termi-
nal, Sakhalin, which is owned by Gazprom.
These cargos head mainly to customers in
Japan and Korea. Sakhalin contains two
LNG processing trains producing a total of
10 MMtpy of LNG. The addition of a third
5-MMtpy train has been proposed, but a fi-
nal decision has yet to be made.
Russias LNG export industry has
been largely undeveloped, but with the
emergence of global LNG trade, Russia is
keen to capitalize on its LNG export ca-
pacity. Four major LNG terminal projects
have been planned: Vladivostok, Yamal,
Pechora and Sakhalin. These major proj-
ects will help Russia compete for LNG
export market share.
Yamal LNG. The $20 B Yamal LNG
project is one of the largest industrial
ventures to ever take place in the Arctic.
The project consists of the development
of the South Tambey condensate gas field
and the construction of the Yamal LNG
export terminal. The project is being de-
veloped by Novatek (60%), Total (20%)
and China National Petroleum Corp.
(CNPC) (20%).
Novatek sold a 20% stake in the project
to CNPC in September 2013. Per the co-
operation agreement, Yamal LNG will pro-
vide at least 3 MMtpy of LNG to China,
and CNPC will provide active assistance
in attracting external funding for the proj-
ect from Chinese financial institutions.
The 16.5-MMtpy LNG terminal will
consist of three trains, each with a capac-
ity of 5.5 MMtpy. Construction will be
conducted in three phases. Train 1 will be
completed in 2016, Train 2 in 2017 and
Train 3 in 2018. Major contract awards
include:
JGC and Technip: The consor-
tium was awarded the engineering,
procurement, construction (EPC),
supply and commissioning of the in-
tegrated liquefaction facility.
CB&I: Detailed concept design.
This includes concept development
of the LNG plant (i.e., LNG storage
and loading facilities, as well as Arctic
shipping and ice-management solu-
tions, a gas transmission pipeline, a
central production facility for gas and
condensate treatment, and the asso-
ciated well sites and gas gathering
system). The concept development
will address the technical, economic
and execution feasibility of the re-
mote Arctic project and will provide
a project schedule and cost estimate.
CB&I, Chiyoda and Saipem: The
companies will provide front-end
engineering design (FEED). FEED
will lay a basis for the detailed EPC
30JANUARY 2014|HydrocarbonProcessing.com
Boxscore Construction Analysis
phase, along with the project sched-
ule and cost estimates to secure the
final investment decision. CB&I will
also be working with the Russian De-
sign Institute, NIPIgazpererabotka,
to address local design and authority
approval requirements.
BASF: Yamal LNG will utilize
BASFs Oase brand technology for
the removal of carbon dioxide from
natural gas.
GE Oil & Gas: The company will
provide $600 MM in crucial tur-
bomachinery equipment for all
three LNG production trains. This
equipment includes six Frame 7E
gas turbines, 18 centrifugal compres-
sors, six variable-speed drives and six
waste heat-recovery units.
Daewoo Shipbuilding & Marine
Engineering: The company will
construct, launch, equip, complete
and deliver up to 16 ARC7 ice-class
LNG tankers. These vessels will be
used for shipping LNG from the Ya-
mal LNG terminal.
Pechora LNG. The Pechora LNG proj-
ect consists of the development of the
Kumzhinskoy and Korovinskoye fields,
the development of a gas transport in-
frastructure, and the construction of the
Pechora LNG terminal and a gas treat-
ment plant.
The LNG plant will be positioned on
220 hectares of land in a non-freezing part
of the Barents Sea coast, 230 km from the
town of Naryan-Mar. The terminal will
receive natural gas via 395 km of pipeline
from the Kumzhinskoy and Korovinskoye
gas fields. The $4 B first phase of the com-
plex will process 4 B cubic meters (Bcm) of
dry gas per year and produce 2.6 MMtpy
of LNG. The project has the capability to
be expanded to 8 Bcmy if needed. Total
cost could reach $12 B, and completion is
scheduled for 4Q 2018.
The use of a floating liquefied natural
gas (FLNG) vessel has also been consid-
ered for Pechora LNG. The FLNG vessel
would provide production, processing, liq-
uefaction, storage and shipment without
the heavy price tag of an onshore terminal.
Vladivostok LNG. The Vladivostok LNG
terminal (FIG. 1) is part of Gazproms East-
ern Gas Program. Eastern Siberia and the
Far East cover nearly 60% of the Russian
Federation. According to estimates, East-
ern Russia contains 52.4 trillion cubic me-
ters (Tcm) of gas onshore and 14.9 Tcm of
gas offshore. The Eastern Gas Programs
goal is to develop these fields to supply
natural gas domestically and to export
markets in Asia. The Vladivostok LNG ter-
minal is crucial to implementing this plan.
Vladivostok will be located in
Perevoznaya Bay on the Lomonosov Pen-
insula. This strategic location was selected
for its navigable pass that is ice-free during
the entire year. Also, the bay is protected
from northern and western winds, traffic
density is low, no areas are prohibited for
navigation, and the site has close proxim-
ity to gas transportation facilities.
Gazprom will work in cooperation
with the Agency for Natural Resources
and Energy under the Japanese Ministry
of Economy, Trade and Industry. Both
groups conducted a joint feasibility study
that was completed in 2011. WorleyPar-
sons was awarded the FEED contract in
November 2013.
The Vladivostok terminal will receive
gas from Russias Far East fields. This feed-
stock will be transported via pipeline to
the plant. Development of the new fields
and construction of the pipeline are ex-
pected to cost $40 B. The terminal will
contain three trains of 5 MMtpy each; the
first train is expected to come online in
2018. Total capital expenditure was raised
from $8 B to $13.5 B in November 2013.
The new figure reflects the additional cost
of infrastructure, such as a port, gas pipe-
line and power station, and higher costs
for the terminal itself.
Sakhalin LNG. ExxonMobil and Rosneft
have joined to construct a $15 B LNG
export terminal in the Sakhalin region of
Russia. The terminal will have an initial ca-
pacity of 5 MMtpy, but could be expanded
in the future. The plant will receive gas
feedstock from Rosnefts reserves in the
Far East and other Sakhalin gas resources.
The initial FEED contracts were award-
ed to CB&I UK and Foster Wheeler in
September 2013. The initial FEED phase
will finalize details for the LNG plant site,
gas liquefaction technology and construc-
tion process. Rosneft and ExxonMobil
plan to finalize the project design by the
end of 2014, including FEED for the LNG
plant, associated facilities and gas pipeline,
as well as engineering studies and an envi-
ronmental impact assessment.
Completion is scheduled for 2018, the
same year as the planned commission-
ing of Gazproms Vladivostok LNG. This
would put state agencies in direct compe-
tition for market share in China, Japan and
South Korea.
R u s s i a
Finland
Estonia
Latvia
Lithuania
Belarus
Ukraine
Modova
Romania
Bulgaria
Georgia
Uzbekistan
Kyrgyzstan
Kazakhstan Mongolia
Aleutian Islands
Novosibirskive
Ostrovo
Severnaya
Zemlya Frantsa Iosifa
Novaya
Zemlya
Arctic Ocean
Arctic Ocean
Barents Sea
Laptev Sea
East Siberian
Sea
Chukchi
Sea
Bering Sea
Bering
Strait
Sea of
Okhotsk
Pacic Ocean
Aral Sea
Black Sea
Kara
Sea
Yakutsk
Shenyang
Ulaanbaatar
Irkutsk
Novosibirsk Omsk
Kazan
St Petersburg
Moscow
Volgograd
Rostov
Istanbul
Helsinki
Tashkent
Vladivostok
Sakhalin
Yamal
Pechora
FIG. 1. Major LNG terminal project in Russia.
LEE NICHOLS is director
of Gulf Publishing
Companys Data Division.
He has five years of
experience in the
downstream industry and
is responsible for market
research and trends
analysis for the global
downstream construction
sector.
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Hydrocarbon Processing|JANUARY 201433
Viewpoint
Small-scale GTL to transform gas processing at oil fields
IAIN BAXTER
Business Development Director, CompactGTL, Abingdon, Oxfordshire, UK
IAIN BAXTER is a member of the board at
CompactGTL, and he joined the company
soon after its incorporation in 2006. Before
thi s ti me, he was busi ness di rector wi th
Advantica (formerly British Gas), where he ran
the Upstream Asset Performance business,
including the LNG consultancy, gas processing,
rotating machinery and technology licensing
areas. Mr. Baxter has 25 years of experience
centered on sales and commercial roles in the
process and energy sectors, particularly in the
Far East and Americas. He has led technology
commercialization programs with world-
class companies in Japan and the US, closing
contracts to $100 million in 25 countries.
Clients include BP, Shell, BG, Saudi Aramco, Eni,
Centrica, PDO Oman and Petronas. Mr. Baxter
holds a degree in mechanical engineering from
Loughborough University in Leicestershire,
UK, and has originated six patents and several
articles for trade press. He regularly presents at
international upstream conferences, and often
participates as a GTL expert panelist.
Iain Baxter is the business develop-
ment director for CompactGTL, a UK-
based company that specializes in small-
scale gas-to-liquids (GTL) technology. A
natural gas and GTL expert, Mr. Baxter
discussed with Hydrocarbon Processing his
outlook for GTL worldwide, particularly
with regard to small-scale liquids produc-
tion from associated gas.
HP. How does a small-scale
GTL unit operate compared with
a large-scale, conventional plant?
IB. Fundamentally, the technology is
predicated on the fact that there are two
types of reactors needed for the GTL
process: syngas [synthesis gas] produc-
tion and Fischer-Tropsch [FT] synthesis.
We have those two types of reactors, and
we have made them about 10% of the size
of the conventional reactors in a world-
scale plant.
These small GTL plant configurations
are standard designs from mass produc-
tion. We have mass production partners in
JapanSumitomo and Kawasaki Heavy
Industries. They have pre-invested in the
manufacturing capability to be able to mass
produce these units in volume, and thats
where we get some economies of scale, as
well as uniformity, in terms of the way in
which were deploying the technology.
HP. In what countries and locations
do you see the most promising
applications for small-scale GTL?
IB. The scope is absolutely global.
Theres a common theme of remoteness
of resources. One incredibly interesting
region is Australia. Activity is also seen in
some Southeast Asian countries, particu-
larly Indonesia, where there have been a
lot of discoveries and activity.
Other key areas are Russia, the CIS
countries, North and West Africa, the US,
Canada and some South American coun-
tries. CompactGTL has projects in all
those territories, at the feasibility and con-
cept development stages. At the beginning
of 2012, Petrobras approval of Compact-
GTLs technology [as commercially dem-
onstrated at Petrobras testing site in Brazil]
was critical, because the upstream and mid-
stream industries are rightly conservative,
and we wouldnt be happy putting projects
forward unless we had demonstrated the
technology at a meaningful scale.
HP. What do you see as a realistic
timeline for growth in popularity
of small-scale GTL?
IB. I think things are going to happen
very fast. In North America, you have a
can-do attitude and a stable environment.
It wont be only GTL; our technology
is compelling and has its perks, but this
technology is going to attract new tech-
nology developments as well. Were abso-
lutely convinced that there will be other
offerings, and that will improve competi-
tiveness, which is good for everybody.
It depends on the logistics and the field
locations. In the oil fields, the oil and gas
companies are really only interested in pro-
ducing oil. We give them the opportunity
to turn the associated gas into synthetic oil.
HP. What are the main factors
contributing to the success
of small-scale GTL technology?
IB. One of the critical factors for Com-
pactGTLs success to date is the fact that,
very early on, we went out into the mar-
ket and looked for manufacturing partners
that have the balance sheets, the reputa-
tion and the resources to put a convincing
consortium together.
Weve found the most worthy, most
capable and most scalable partners with
Fluor, Johnson Matthey, Sumitomo and
Kawasaki. The investment from those
partners in terms of engineering hours,
samples, prototypes, and even manufac-
turing the catalysts and reactors that we
needed for the Brazil demonstration, have
been absolutely critical for our success.
The other critical aspect is the fact that
weve recruited experience in world-scale
34JANUARY 2014|HydrocarbonProcessing.com
Viewpoint
GTL, mainly from South Africa, which
has given us real operational insight, both
from an engineering and operational mod-
el, and from an economic perspective.
Another thing thats been absolutely
critical is the success of the CompactGTL
demonstration plant in Brazil. If it wasnt
for Petrobras making the decision to in-
vest in a $45 million [MM] contract with
us in 2008, clearly it wouldve been very
difficult for us to achieve the level of ma-
turity that we have now. Were in conversa-
tions with nearly all the household names
in the industry. The reason were in those
conversations, and the reason we have
these projects at these levels, is because
of the robustness and the credibility thats
behind the technology.
The market opportunity is absolutely
vast. Theres plenty of room for other
companies to come in to try and develop
alternatives and enhancements, but its a
high-stakes game. This technology is very
difficult to develop, it takes time, and it
takes a lot of money. CompactGTL has
$200 MM invested to date to get us to this
point. Our chairman, Tony Hayward, said
earlier in the year that he believes this is an
absolute game-changer for the industry.
HP. Do you see small-scale GTL
as being more applicable to
onshore or offshore operations?
IB.The offshore market is an incred-
ibly interesting propositionalthough, in
terms of volume, the onshore market is a
vast market opportunity compared with
the offshore. The opportunity for this
technology outside of North America is
very heavily geared toward processing as-
sociated gas and enabling oil field projects
to proceed where flaring restrictions are in
place. Its also applicable to remote loca-
tions with no gas infrastructure, as well as
to places where the costs of installing the
infrastructure are prohibitive.
However, in North America, the eco-
nomic drivers are slightly different. Theres
a surge of new gas discoveries in the shale
plays. With the ongoing gas discoveries
and the new gas supplies coming online,
gas prices are set to be reliably low, while
liquids prices are set to be reliably high,
and this has created a gas monetization
opportunity in North America. Its still
most likely to be associated gas, but the
economics are not necessarily driven by
access to oil, but instead by creating value
out of a very low-value gas commodity.
In the last two years of development,
CompactGTL has been able to bring the
costs of its onshore plant offerings down
quite substantially. Weve been able to in-
crease the scale at which its viable, which
has really lent itself to the North Ameri-
can market. Taking into account the tax
regimes among the different states, weve
got pretty robust project economics that
are looking at internal rates of return in
the 20%-plus [range], based on realistic
gas costs and realistic liquids revenues. So,
North America is a really exciting area for
this technology.
What weve done for larger-scale proj-
ects is to harness conventional technolo-
gy to generate the syngasthe first stage
of the process. If we replace our modular
reforming units with conventional tech-
nology, the size is still such that you can
usually get the equipment into remote
locations, and that drastically reduces the
cost of the offering.
For example, well take a standard re-
former from Lurgi or Haldor Topse, or
another company that offers syngas tech-
nology, and well marry that with our own
modular FT unitsthe second stage of the
process. This gives a good combination of
the ability to move into remote locations
and more reasonable capital costs, and it
economically enables the project to stand
on its own two feet for gas monetization.
HP. What is the maintenance
like on these units?
IB. The biggest factor for GTL plants
in terms of maintenance is the replace-
ment of the main process catalysts. One
of the unique aspects of CompactGTLs
technology is that we have a two-stage
process that allows us to maximize the life
of the cobalt-based catalysts inside the re-
actors. The first step toward mini-
mizing the operational costs and
maintenance is to ensure as long of
a catalyst life as possible, and our
patented technology is directed to-
ward doing that.
Our catalysts will last 35 years
before they need replacement. The
replacement strategy is to exchange
entire modules. So, you bring spare
modules in, because theyre all the same
design, and swap them out to keep the
plant running. Those modules are reac-
tors that require the catalyst to be changed
and then taken away from the site. Theyre
40-foot-long, container-sized boxes, so
weve deliberately constrained the design
to make the logistics and transportation
by truck viable and easy.
The reactors are then returned to a fac-
tory environment, where our partners un-
dertake the catalyst replacement process,
creating a module thats then ready to be re-
deployed either back to the original plant,
or to another project somewhere else.
The overall operational costs for one
of these plants is about US$18 per bar-
rel of liquid product produced, which
includes the lifetime cost of replacing the
catalysts, so [the economics are] pretty
compelling.
HP. What trends do you see in the
GTL market, as a whole, over the
next 510 years?
IB.The GTL market, in the broader
sense of the word, is the business model
adopted by Shell and Sasol, which are
looking for large, reliable gas supplies.
Usually, [these companies] insist on hav-
ing ownership in the gas asset before in-
vesting in a plant. Peter Voser [CEO of
Shell] recently gave an interview where he
put a new perspective on what Shell and
Sasol see in North America as the oppor-
tunity for GTL.
CompactGTLs technology isnt really
GTL in the true sense of the word; instead,
its dealing with problematic gas and turn-
ing it into oil. Its a different kind of busi-
ness from whats going on in large-scale
GTL. In time, I think this [small-scale]
technology will be bigger than large-scale
GTL; there will be many of these small
plants distributed everywhere.
The market opportunity [for small-scale GTL]
is absolutely vast. Theres plenty of room for other
companies to come in to try and develop alternatives
and enhancements, but its a high-stakes game.
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|
Special Report
NATURAL GAS DEVELOPMENTS
The natural gas market is dominated by upstream development
in shale gas production, particularly in North America, and by
midstream and downstream progress in gas-to-liquids (GTL) and
liquefied natural gas (LNG) technologies and projects. Despite
Shells cancellation of its large-scale GTL project in Louisiana, the
high spread between oil and gas prices over the last few years
has drastically improved overall economics for GTL. In the US and
several other countries, there is increased interest in small-scale
and mobile processing technologies, especially for GTL and LNG
production. Also, the rapid increase in gas production from shale
formations, along with rising prices for natural gas liquids (NGL),
are encouraging the construction of additional gas processing
facilities in the US. This months Special Report features advances in
technologies and market developments for gas processing and LNG.
Photo: Crosstex Energy Services Eunice fractionation plant and processing
facility in Louisiana. Photo courtesy of Crosstex.
Hydrocarbon Processing|JANUARY 201437
Special Report
Natural Gas Developments
A. BULTE, Foster Wheeler, Houston, Texas
Consider new designs for offshore LNG
regasification terminals
It is a common belief that the project-
ed growth in gas demandspecifically,
where liquefied natural gas (LNG) im-
ports are needed to meet that demand
will require faster execution of LNG re-
gasification terminals. Here, a new design
for an LNG regasification terminal is pre-
sented that can meet aggressive schedules
and be flexible in terms of site selection.
The proposed solution for LNG re-
gasification includes the following client
objectives:
Develop a terminal that achieves
commercial operation in 2224
months.
Use floating storage units in lieu of
LNG tanks to accelerate the startup
date. The faster offshore time table
helps avoid a protracted permitting
process, which is often experienced
with onshore terminal projects.
Improve the viability and cost of the
project by locating it offshore. Often,
potential onshore sites are not physi-
cally feasible, or they require large in-
vestments, such as extensive dredg-
ing, to make the sites acceptable.
Ensure low operating costs.
One solution to meet the above ob-
jectives is to build a floating storage and
regasification unit (FSRU). However, FS-
RUs tend to be less economic compared
to traditional onshore regasificaction ter-
minals, due in part to the high vessel leas-
ing costs. An LNG regasification terminal
concept has been developed that features
a more competitive execution schedule
than those offered by major FSRU pro-
viders, along with a significantly lower
capital cost.
Concept development and design.
From a structural point of view, offshore
LNG terminals can be fixed [sea island jet-
ty, jacket, gravity-based structure (GBS)]
or floating [floating wharf (i.e., metal
buoys fastened to anchor chains) and
weathervaning]. The selected support
technology is important, since it has a large
impact on investment and operating costs,
flexibility, safety, availability and reliability,
time for completion and other factors.
Moreover, to select a suitable technol-
ogy, it is necessary to consider several fac-
tors such as location characteristics (cli-
matic conditions, seawater depths, etc.),
storage and sendout requirements, and
environmental issues.
The following options were considered:
FSRUs
GBSs
Floating storage units (FSUs)
Floating regasification units (FRUs).
FSRU. This solution consists of a ves-
sel that is new or reconverted from a carri-
er, equipped with tanks for LNG storage,
and with all of the required vaporization
process equipment.
The FSRUs main components are:
LNG transfer system (offloading
system)
Storage tanks (in ship)
Boiloff gas (BOG) handling system
LNG pumping system
Vaporization equipment
Delivery facility
Auxiliary systems.
In the FSRU, the LNG delivered by
carriers is received by the FSRU offload-
ing system, stored in tanks, pumped and
regasified into natural gas. The gas is then
delivered to consumers through a flexible
or rigid riser that is connected to the sub-
sea pipeline, or via high-pressure loading
arms fixed on a jetty. Prior to delivery, the
natural gas flowrate is measured by an ul-
trasonic flowmeter, and the gas is odorized.
FIG. 1 describes the principal compo-
nents of an FSRU. The sketch illustrates
three possible means of LNG vaporization:
1. Open-loop seawater: Pumping
warm seawater across the vaporizer
and discharging cooled seawater
Compressor
Boilof
Boilof
Boilof
LNG LNG
LNG
ofoading
Storage LP pumps Recondenser
HP pumps
LNG
Vaporizers
Metering
station
Seawater discharge
Seawater intake
2
1
Open loop
Valves 1, 2 open
Valves 3, 4, 5 close
LNG LNG
LNG
NG
Vapor
Power
generator
BFW
Subsea
pipeline
Hot water
Remaining boilof
Boilers
3
5
4
Close loop
Hot water: Valves 3, 4 open
Valves 1, 2, 5 close
Vapor: Valves 4, 5 open
Valves 1, 2, 3 close
FIG. 1. Process block scheme of an FSRU.
38JANUARY 2014|HydrocarbonProcessing.com
Natural Gas Developments
2. Closed-loop water: Pumping
freshwater through a closed circuit,
in which the water is warmed
in the FSRU boilers and cooled
across the LNG vaporizer
3. Closed-loop steam: Using steam
produced in the FSRU boilers to
vaporize the LNG and returning
the condensate back to the boilers
in a closed loop.
FSU plus FRU. This project alterna-
tive is based on providing two different
vessels, one to function as an LNG storage
vessel and the other to serve as the regasifi-
cation unit. This solution is best suited for
calm waters. The overall process is similar
to the scheme shown in FIG. 1.
GBS LNG terminal. This solution
consists of a pre-cast caisson structure
developed to receive LNG carriers. The
structure includes internal LNG storage
tanks, and the required regasification
equipment is installed on the caisson su-
perstructure. LNG carriers moor on this
structure, as it is equipped with all re-
quired nautical equipment (quick-release
hooks and a fender system) and unload-
ing/process equipment (unloading arms,
vaporizers, etc.). Quick-release hooks are
devices intended for the safe mooring of
large tankers; they allow for quick release
by the control room.
Experience shows that a GBS is an
expensive solution. Delivery of the struc-
ture, including the storage tanks, can be
protracted, meaning that this solution
cannot meet accelerated schedules.
Alternative solution. An innovative so-
lution combines features of the three con-
cepts outlined previously, and is designed
to be modular and scalable. The solution
consists of a regasification unit that is per-
manently moored to an LNG ship, which
acts as the FSU. A gas pipeline connects to
onshore receiving facilities to supply gas
to the local pipeline grid.
This configuration enables a perma-
nent installation at a competitive price
and on a fast schedule. The availability of
the plant is higher than the regasification
vessel alternatives because there is a lower
impact from adverse sea conditions.
FSRU
Onshore + TK
Onshore + FSU
Alternative solution
Curve of values for client
I
n
i
t
i
a
l
C
A
P
E
X
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t
a
l
i
n
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e
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t
+
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a
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a
l
)
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r
e
s
e
n
t
v
a
l
u
e
S
c
h
e
d
u
l
e
P
e
r
m
i
t
s
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e
s
t
r
i
c
t
i
o
n
s
o
f
a
p
p
l
i
e
d
s
t
a
n
d
a
r
d
s
P
o
s
s
i
b
i
l
i
t
y
o
f
s
t
a
n
d
a
r
d
i
z
a
t
i
o
n
U
n
i
t
e
f
c
i
e
n
c
y
$300 M
$180 M
$160 M
$70 M
$541 M
$324 M
$194 M
$173 M
36 m
22 m
18 m-20 m
16 m
B
A
D
G
O
O
D
FIG. 2. Value curve for the alternative regasification solution.
FIG. 3. Alternative regasification unit module design.
TABLE 1. Cost comparison for various regasication alternatives
Alternative solution Leased FSRU
Onshore regasication
and LNG tank
Onshore regasication
with FSU
Initial CAPEX, million USD 160 (based on caissons) 70 300 180
Total investment, net present value
(10 years), including OPEX
173
541 (including FSRU
charter rate)
324 194
Optimum schedule up to
mechanical completion, months
16 (based on caissons)
1820 (considering
that FSRU must be built)
36 22
Permitting Quick schedule Quick schedule Long schedule Long schedule
Restrictions of applicable standards Low Low High High
Potential for standardization
High High Low
Medium (depending on
vaporization system)
Note: This comparison is based on a storage capacity of 150,000 m
3
and a sendout rate of 500 MMscfd.
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c
p
o
w
e
r
,
k
W
h
/
t
45 50 55
FIG. 3. Power vs. ambient design temperature.
SMR
N
2
expander
25
0
5
10
15
20
25
30
35
40
30 35 40
Temperature, C
S
p
e
c
i
c
p
o
w
e
r
d
e
m
a
n
d
r
e
l
a
t
i
v
e
t
o
S
M
R
,
%
45 50 55
Specic power demand SMR vs. dual N
2
expander
@ 40 bar/580 psi feed gas pressure vs. ambient temperature
FIG. 4. Specific power demand for SMR vs. dual N
2
expander.
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Natural Gas Developments
Based on exemplary calculations for a simple propane
chiller, there appears to be improvement potential for the N
2
expander cycle of up to 15% compared to the stated values
for the uncooled cycle. Feed gas precooling is technically
simple, whereas refrigerant precooling is more complex, but
also more rewarding.
In a best-case scenario, the power disadvantage of a pre-
cooled N
2
expander cycle may be as low as 10% to 15% above
a (non-precooled) SMR cycle.
Additional observations. Aside from power consump-
tion, two other parameters with impact on investment cost
are significantly different for the two refrigeration processes.
Whereas the SMR cycle uses a two-phase refrigerant, the N
2
refrigerant in the N
2
expander cycle is always in the gas phase.
It is not surprising that volumetric flows (and, therefore, pipe
diameters) are larger in the N
2
expander cycle than in the
SMR cycle at any given duty. Also, refrigerant pressures (and,
therefore, pipe schedules) typically need to be significantly
higher to get to reasonable pipe diameter and process efficien-
cies. In reference to the given example:
The suction line diameter of the refrigerant compressor
is 20 inches (in.) for the SMR cycle and 24 in. for the N
2
expander cycle
The high-pressure refrigerant operates at approximately 40
bar (600 psi) for the SMR cycle and 70 bar (1,000 psi) for
the N
2
expander cycle, resulting in Class 300 piping for the
SMR cycle and Class 600 piping for the N
2
expander cycle.
Technical and operational pros and cons. A number of
additional aspects should be considered when comparing both
technologies, as a thorough response requires more technical
background information.
Refrigerant use and makeup system. Both the SMR and
N
2
expander refrigeration cycles operate in closed loops; i.e.,
they do not consume refrigerant during operation. Typically,
the compressors and seal systems used in these refrigeration
cycles are not completely leak-tight, and, therefore, leakage
must be replaced by makeup. A makeup system is required in
every case. For the N
2
expander cycle, this system may consist
of a liquid nitrogen (LN
2
) tank with an evaporator as the sim-
plest solution. Additionally, for the SMR cycle, makeup stor-
age of the hydrocarbon components C
2
to C
5
is also required.
Note: C
1
makeup is sourced from the feed gas.
Refrigerant makeup rates are typically much higher for N
2
expander plants. This higher makeup rate is due to design dif-
ferences between the SMR cycle and the N
2
expander cycle
compressor seals:
N
2
compressors and expanders/boosters are tradition-
ally a product of the air separation industry, where leakage
losses are considered an efficiency loss. Therefore, inex-
pensive labyrinth seals are a standard solution. Labyrinth
seals offer leakage rates of around 3% to 6% of the flow.
Alternatively, carbon ring seals offer a reduced leakage
rate (around 0.2% of flow) at a slightly higher cost and are,
therefore, typically used for N
2
refrigerant compressors.
SMR compressors are products of the oil and gas process-
ing industry, where hydrocarbon leakage is considered a
hazard and must be minimized. Dry gas seals (DGSs) are
the standard design, offering minimal leakage rates (only
1% to 10% of the leakage rate of wet gas seals). They are
mostly independent from the compressor throughput.
However, dry gas seals feature significantly higher com-
plexity and come at a much higher cost (approximately
$250 thousand USD), which is why DGSs are not com-
monly used for N
2
compressors.
Note: Hermetically sealed compressors, exhibiting zero re-
frigerant loss, have also been reviewed to complete the picture.
In the analyzed capacity range and at the assumed cost of make-
up components, they do not seem to be an economical escape
route, either for the mixed refrigerant or the N
2
compressor. Al-
ternately, hermetically sealed expanders/boosters appear more
attractive, despite only contributing a minor part of the total
leakage rate in an N
2
expander cycle.
Although refrigerant leakages from the cycle are considered
unavoidable, it does not automatically mean that those losses
must be fully matched by external makeup imports. It is tech-
nically feasible to recover major parts of refrigerant losses. The
question is whether or not this alternative is the most economical.
Whereas large-scale LNG plants usually take the C
2
to C
5
makeup components from the fractionation process, in most
cases, this is not an economical option for small-scale LNG
plants, although it is technically feasible and has been success-
25 30 35 40
Feed pressure, bar (a)
S
p
e
c
i
c
p
o
w
e
r
,
k
W
h
/
t
45 50 55 65 60
Liquefaction power vs. feed gas pressure
@ 40C/104F ambient temperature
FIG. 5. Liquefaction power vs. feed gas pressure.
SMR
N
2
expander 30C
N
2
expander 40C
N
2
expander 50C
25 35 45 55 65
0
5
10
15
20
25
30
35
40
Feed pressure, bar (a)
S
p
e
c
i
c
p
o
w
e
r
d
e
m
a
n
d
r
e
l
a
t
i
v
e
t
o
S
M
R
,
%
Specic power demand, SMR vs. dual N
2
expander
vs. feed gas pressure
FIG. 6. Specific power demand for SMR vs. dual N
2
expander.
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50JANUARY 2014|HydrocarbonProcessing.com
Natural Gas Developments
fully demonstrated. Therefore, makeup import from external
sources is usually considered, and refrigerant components are
limited to C
2
and C
4
. This comes at the expense of a small ef-
ficiency loss, which is considered in the efficiency comparison.
This small efficiency loss helps to minimize both the invest-
ment cost for the makeup system and logistical/procurement
efforts for the plant operator.
While an inexpensive/high-leak seal design is technically
an option for N
2
expander cycle machinery, it is an economic
question of which setup offers the best lifecycle cost, as will be
discussed later.
Makeup system operation. In the N
2
expander cycle, the
operator must monitor the cycle pressure and add N
2
when
the pressure drops below certain limits. The machinery seal
type and resulting leakage rate of the system determine the fre-
quency for adding makeup. This frequency may range from a
continuous operation to a weekly occurrence.
Operating efforts may be doubled in case a C
3
precooling
cycle is added to the N
2
expander cycle (depending on C
3
com-
pressor seal design). For the SMR cycle, leakage and resulting
makeup rates are lowered by an order of magnitude. Nonethe-
less, the operator must monitor the refrigerant composition in
addition to the cycle inventory. An online analyzer (i.e., a gas
chromatograph) is provided to this end, and biweekly check-
ing of inventory and composition is recommended. (Contrary
to statements found in some literature, the authors experience
has shown that SMR cycle efficiency is quite forgiving to off-
spec MR composition and is sufficient to achieve close to the
recommended component mix.) To add makeup components,
automated functions can be activated by the operator on the
control panel without any need for further field operator inter-
vention. Operator failure to maintain refrigerant composition
may result in slowly decreasing process efficiency.
Operation at off-design conditions. Liquefaction capacity
can be adjusted for both refrigeration technologies. In principal,
capacity is influenced by the refrigerant system inventory; i.e.,
reduced refrigerant system inventory will result in lower pres-
sures, lower refrigerant mass flows and lower LNG production.
For the N
2
expander cycle, such inventory adjustment is a
widely used method to achieve efficient partial-load operation.
The operator must only release or add inventory to decrease or
increase the plant load. By doing so, the refrigerant compres-
sor antisurge valves can remain closed over a wide load range.
In this way, process efficiencies near design can be maintained.
To avoid losing released refrigerant, a dedicated buffer drum
can be added for temporary storage. This can be quite a large
and expensive vessel, depending on the plant capacity, but op-
eration of such a system is relatively simple. The typical N
2
ex-
pander process can reach a partial load as low as 30%.
The SMR technology features the maintenance of a two-
phase refrigerant of a certain composition. Releasing inven-
tory is more complex and, therefore, is only done occasion-
ally. Dumping of released refrigerant usually is not an option,
so temporary storage is required. Without such optional extra
equipment, partial-load operation is realized by reducing the
compressor throughput (e.g., via inlet guide vanes) and, below
a certain load, opening the recycle valves to protect the com-
pressor from surge. Partial-load process efficiency will drop
drastically when operating in recycle mode. To maintain correct
two-phase flow patterns in the PFHE, partial-load operation is
limited to approximately 50% in this setup.
In the frequent case where extended partial-load operation
is expectedmostly during the initial operating period of an
LNG plantno extra equipment is needed. In that case, opera-
tions require the filling of the SMR cycle inventory up to the
level corresponding to the desired plant load. This step-by-step
procedure allows for highly efficient partial-load operation (as
low as 30%) at no additional cost.
Additionally, SMR technology gives the option to vary the
refrigerant design composition to improve process efficiency
at off-design operating conditions (typically, ambient tempera-
tures). This can be realized to a limited extent by modifying
the ratio between heavy mixed-refrigerant (HMR) and light
mixed-refrigerant (LMR) flow; otherwise, manual adjustment
of the composition is required.
To avoid loss of refrigerant, such an adjustment should
be made in the normal frequency of adding makeup, unless a
refrigerant buffer is provided. Therefore, this method is only
suitable for longer-term (typically, seasonal) adjustments, rath-
er than daily adjustments, although it may still result in lower
annual power consumption.
Startup time. Startup from a warm condition to a full
load must be performed slowly with the SMR option. This is
necessary to keep thermal stress in the PFHE within permis-
sible limits, because liquid refrigerant has a far higher heat-
TABLE 2. Diferences in capital cost for SMR vs. N
2
expanders
CAPEX diference,
million USD SMR
Dual N
2
expander
High CAPEX/
low OPEX
Low CAPEX/
high OPEX
Liquefaction unit 0 +0.15 +0.15
Refrigeration system
Rotating equipment +0.3 +0.8 0
Static equipment +0.15 0 0
Bulk materials and labor 0 +1.4 +1.4
Refrigerant makeup system
Static equipment +0.6 0 0
Bulk materials and labor +0.7 0 0
Total +1.75 +2.35 +1.55
TABLE 3. Diferences in operating cost for SMR vs. N
2
expander
OPEX diference,
million USD per year SMR
Dual N
2
expander
High CAPEX/
low OPEX
Low CAPEX/
high OPEX
Electric power
(0.06 USD/kWh)
0 +0.7 +0.7
Refrigerant makeup/seal gas
MR hydrocarbon
components (0.4 USD/lb)
+0.15 0 0
Nitrogen (0.1 USD/lb) +0.07 0 +0.75
Total +0.22 +0.70 +1.45
Will you have a place in Israels Oil and Gas Industry?
Attend EMGC 2014 and learn about new and exciting
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companies active in the region will share insight into
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Charles D. Davidson
Chairman and CEO
Noble Energy
Gina Cohen
Gas Consultant
Eastern Mediterranean
Gideon Tadmor, CEO, Avner Oil Exploration
Yossi Abu, CEO, Delek Drilling
Lawson Freeman, Vice President, Eastern
Mediterranean, Noble Energy
Government of Israel and Government of Cyprus
EMGC 2014 Conference Program
will Explore:
Current Exploration Programs in Israel and Cyprus
Resource Potential
Israels Export Opportunities including Technical,
Economical and Geopolitical Implications
Export Opportunities via Pipelines, Challenges
and Solutions
Legal Issues including Project Finance, Taxation,
Regulations and Antitrust
Economic Impact of New Energy Resources on Israel
and Cyprus
Infrastructure Requirements
Gas Processing and Transportation Fuels
The Future of the Eastern Mediterranean including
Leviathan and Tamar discoveries
Benets of Attending:
Networking breaks, a gala dinner and exhibition hall
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1012 March 2014
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Focus on Israeli Innovation
Attendees will also have the opportunity to attend this tour on 10 March.
Supported by the Israel Export Institute and the Israel NewTech program,
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capabilities of desalination and water treatment in all its aspects and a visit
to one of the leading security companies in the world. The tour runs from
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Hydrocarbon Processing|JANUARY 201451
Natural Gas Developments
transfer coefficient than does gas. With liquid refrigerants, the
PFHE core temperature approaches refrigerant temperature
faster. Typically, the startup of an N
2
expander process can
be achieved in about half the time required for the
startup of an SMR process.
For a cold plant restart (e.g., after a trip where the
PFHE remains cold), there is no difference in start-
up time between the two refrigeration technologies.
Plant maintainability. Compressors are the
main focus when assessing plant maintainability.
There are significant differences in rotating equip-
ment quantities and design between refrigeration
technologies. For the SMR cycle, there is only one
compressor and, therefore, only one set of capital
spare parts to be procured.
The N
2
expander cycle comprises two additional
expander/booster sets. Therefore, three machines
require regular maintenance, and three sets of capital
spare parts must be procured. The typical seal sys-
tems used in this scenario have good operating re-
cords, and spare parts are a much lower matter of expense than
for DGSs. Also, the likelihood of unscheduled maintenance
issues is greater on three pieces of compression equipment vs.
a single piece of compression equipment.
One possibility to achieve at least equal maintainability is
to use hermetically sealed expander/booster sets with mag-
netic bearings that are more or less maintenance-free, in addi-
tion to their advantage of zero refrigerant leakage.
The N
2
expander cycle situation is more impacted when a
precooling cycle is added to enhance process efficiency, as this
configuration adds a fourth compressor.
Environmental and process safety. The handling and stor-
age of LNG is key when it comes to safety and permits for LNG
plants. There is no difference between the two refrigeration
technologies in this regard. The methodology for determining
exclusion zones typically results in similar separation distances
that are accounted for in a standard plant layout. Risks of ex-
plosion and jet fires resulting from high-pressure natural gas
piping systems are also comparable, as is the requirement for
explosion or fire protection.
The small advantage an N
2
expander plant may have is can-
celed when C
3
precooling or ammonia precooling is added.
These considerations drive the novel CO
2
precooling system
to appear on the agenda for floating LNG (FLNG).
To achieve the same compact layout at an equal level of safe-
ty, the SMR plant will only incur additional cost for safety mea-
sures when forced into a congested plant layout by the available
plot spacee.g., in an FLNG plant.
While some publications suggest that the N
2
expander cy-
cle is friendlier to the environment than the SMR due to its use
of N
2
as the refrigerant, this is only a partial truth. The refrig-
erant is operated in a closed cycle, with the compressor seals
as the only significant point of leakage. The small seal leakage
from an SMR cycle compressor will usually be flared, resulting
in CO
2
emissions, or it may be recycled. In this case, the N
2
expander cycle has an environmental benefit, since its seals will
release only harmless N
2
. However, when evaluating energy ef-
ficiency with a corresponding CO
2
footprint, this advantage is
turned on its head, and the SMR cycle has more benefits.
Economics. Differences in investment and operating cost have
been determined for some examples to ensure that evaluation of
the different technologies is considered on an equal basis. The ex-
ample provided is deemed representative. It encompasses a typi-
cal LNG liquefier (i.e., liquefaction, refrigeration and makeup
units) in a US Gulf Coast location with a capacity of 200,000 gpd.
For the N
2
expander cycle, two options are shown in TABLE 2:
1. Process machinery, either seal-less or fitted with refrig-
erant recovery, resulting in higher investment cost but
lower utility consumption and operating cost
2. Process machinery fitted with standard seal systems
(C-rings on the refrigerant compressor and labyrinths
elsewhere), resulting in lower investment cost but higher
utility consumption and operating cost.
Capital cost. Capital expenditures (CAPEX) include en-
gineering, procurement and construction (EPC) and turnkey
delivery of the LNG liquefier. In each cost line item, the lowest
option has been set to zero, and the incremental cost of the al-
ternatives is indicated. Optional features (e.g., refrigerant buf-
fer systems) have not been considered.
Observations on this comparison include:
SMR compressors are expensive equipment compared
to the air separation unit machinery of the N
2
expander
cycle
Piping quantities are greater than 100% higher for the N
2
expander cycle compared to the SMR cycle, resulting in
significantly higher materials and construction cost
Total cost differences between the three alternatives are
smallonly about 5% when considering the absolute
cost of the exemplary liquefier system, or 1% when con-
sidering the absolute cost of the exemplary, complete,
greenfield LNG plant.
Operating cost. Operating expenditures (OPEX) assessed
in TABLE 3 account only for power and refrigerant makeup con-
sumption and are based on 8,000 hours per year. The cost for
operating personnel will be identical, whereas cost differences
for equipment maintenance are difficult to assess precisely.
Observations on this comparison include:
The SMR cycle shows the expected benefits with respect
to power consumption
For the N
2
expander cycle, the cost of LN
2
makeup
reaches the same order as the cost of power
Having demonstrated only minor
capital cost differences between the
two refrigeration technologies, it can
be concluded that a decision is best
based on operating cost and operability
issues. For applications with high annual
operating hours near design load, the SMR
technology has a strong advantage with
respect to operating cost.
52JANUARY 2014|HydrocarbonProcessing.com
Natural Gas Developments
When considering a 15-year lifecycle cost, the relative
OPEX disadvantage of the N
2
expander cycle to the
SMR reaches the same order of magnitude as the abso-
lute cost of the exemplary liquefier system.
Recommendations. Having demonstrated only minor capi-
tal cost differences between the two refrigeration technologies,
it can be concluded that a decision is best based on operating
cost and operability issues.
For applications with high annual operating hours near
design load, such as baseload or peakshaving LNG plants, the
SMR technology has a strong advantage with respect to oper-
ating cost. Its disadvantages, including longer startup time and
reduced partial-load capability, are less relevant.
For applications with low annual operating hours and wide
load-profile requirements, such as boiloff gas reliquefaction
units, the N
2
expander cycle, with a refrigerant buffer system,
offers significant advantages with short startup time, as well as
wide partial-load capability and efficiency, while low operating
hours compensate for higher specific operating cost.
Additionally, in remote areas where C
2
and C
4
makeup com-
ponent delivery comes at high logistical effort and price, the
OPEX gap between the SMR cycle and the N
2
expander cycle
will be smaller. However, this situation will rarely arise in the US.
The extra investment in an N
2
expander cycle low-leakage
system typically will have an attractive payback time of less than
three years.
NOTES
1
The SMR process used in this study is Lindes proprietary single-cycle, multistage
mixed-refrigerant process LIMUM. The N
2
expander process is BHP Billitons
licensed dual-nitrogen expander process.
2
SMR power consumption is used as a reference point for comparison and is,
therefore, set to 100% throughout the temperature/pressure range.
THORSTEN KOHLER graduated from the University of Erlangen-Nuremberg,
Germany in 1997 with a masters degree in chemical engineering, and he joined
Linde Engineering in 1997 as a systems and commissioning engineer for adsorption
plants. Mr. Kohler moved to Linde Engineerings process design group for LNG
and natural gas processing plants in 2002. Since 2006, he has been working as
lead process engineer on small- to mid-scale LNG projects, including proposal
work, contract executions and commissioning.
MATTHIAS BRUENTRUP graduated from Munich Technical University in Germany
in 1996 with a masters degree in engineering, and joined Linde Engineering in
2000 as a project manager. He has been working on small- to mid-scale LNG
projects since 2005 in various positions, including as proposal manager and
senior project manager. Based on this experience, Mr. Bruentrup became a
product manager for small- to mid-scale LNG plants in 2012.
RON D. KEY graduated from the University of Tulsa in Oklahoma with bachelors and
masters degrees in chemical engineering, and joined Linde Engineering in 1988. He
holds six process-related patents. Mr. Key is presently serving as the vice president
of technology and sales at Linde Process Plants Inc., and he is an experienced
business leader in engineering, procurement, fabrication and construction.
TINA EDVARDSSON graduated from Chalmers University of Technology in
Sweden in 1985 with a masters degree in chemical engineering, and joined
Linde Engineering in 2012. She holds four process-related patents. Ms. Edvardsson
is presently serving as the director of business development at Linde Process
Plants Inc. She has more than 25 years of experience in developing processing
and power plant projects in the domestic and international markets.
B
e
s
t
V
a
lv
e
s
s
in
c
e
1
8
6
7
Select 153 at www.HydrocarbonProcessing.com/RS
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Hydrocarbon Processing|JANUARY 201455
Special Report
Natural Gas Developments
J. WANICHKO, T.A. Cook Consultants,
Raleigh, North Carolina
The ethane addiction: How long will
the US advantage last?
The price advantage US petrochemical
producers have gained from shale has been
well documented, but the wider effect of
that advantage on competition between
Europe and the US demands equal atten-
tion. Here, the increasing use of ethane as
a feedstock and its effects on the global
petrochemical industry, both in terms of
product availability and the market-spe-
cific nuances that affect the survival of its
key players, are examined.
United States of shale. Until 2006, shale
was responsible for almost none of the US
crude oil demand, of which approximately
10 million barrels per day (MMbpd) of the
16 MMbpd were imported. However, by
July 2013, the Bakken and Eagle Ford shale
plays in the US were together responsible
for just over 1.4 MMbpd, adding steadily
to the amount of domestically produced
conventional crude.
As a result of the changes in supply,
the US changed from being a natural gas
importer to a nation with a surplus of gas,
pushing the industrial price of natural gas to
record lows of just over $3 per thousand cu-
bic feet in 2012. According to the American
Chemistry Council, the price of ethane pro-
duced from gas dropped significantly, from
a high of 93 cents per gallon (gal) in 2008 to
only 26 cents/gal at the end of 2012.
Not surprisingly, the effect of such low
ethane prices has been a jump in ethane
margins to 25 cents per pound (lb) in
mid-2013, showing an advantage against
naphtha of almost 30 cents/lb, which has
fluctuated around the zero mark. This, in
turn, has prompted the announcement of a
number of ethylene-specific construction
projects based solely on the ethane avail-
able from shale. By 2017 alone, over 7.7
million (MM) tons of capacity will come
online from firms including ExxonMobil
Chemical and Chevron Phillips (TABLE 1),
while additional capacity will be available
from the expansion of existing units.
According to analysts, this additional
ethylene capacity will require 12 MM
tons per year (MMtpy) of extra ethane,
which could result in an ethane deficit of
more than 3.5 MMtpyeven when tak-
ing shale development into accountif
all of those projects and extensions are
completed. The obvious result would be
limited supply, increasing prices and de-
creasing profit margins.
The European environment. Mean-
while, in Europe, the effects of ethane
cracking in the US have been felt keenly,
for two key reasons. First, while Western
Europe is home to a number of shale for-
mations (799 trillion cubic feet of techni-
cally recoverable resources, according to
the US Energy Information Administra-
tion), shale remains a highly controversial
political issue in Europe.
The environmental effects of hydrau-
lic fracturing (i.e., fracing) on water tables
and greenbelt areas are regularly publicized
by lobbies and parties that oppose the de-
velopment of shale plays. For this reason,
politicians are hesitant to publicly endorse
fracking. President Franois Hollande of
France has gone so far as to maintain a ban
on the use of fracing technology.
Second, since Europe predominantly
built its infrastructure around naphtha
cracking, which is tied to the price of crude
oil, its petrochemical industry has inevita-
bly suffered from recent oil price highs of
$100/bbl. If the dwindling crude reserves
in the North Seafrom which Euro-
pean producers have historically gained
a leadare taken into account, then the
US competitive advantage from shale de-
velopment puts European producers in a
very tough position.
Better late than never. This scenario
has spurred European companies to jump
on the ethane bandwagon and arrange
contracts with producers in North Amer-
ica to import the chemical. Ineos Europe
AG, for example, announced a new agree-
ment to source ethane from Marcus Hook,
Pennsylvania, for use in its cracker com-
plexes in Europe, which are due to come
online in the first half of 2015.
In the short term, similar deals could
help improve margins for producers in
Europe, but pending legislation in the
US designed to limit the amount of eth-
ane permitted for export could hinder
Europes progress and instead preserve
the US competitive advantage. Even
if European companies sign contracts
quickly, those contracts will fail to ad-
dress the high level of investment needed
TABLE 1. Planned new crackers in the US, based on capacity from shale
Company Capacity, MMt Location Startup
Sasol 1.5 Lake Charles, Louisiana 2017
OxyChem/Mexichem 0.544 Ingleside, Texas February 2017
ExxonMobil Chemical 1.5 Baytown, Texas Late 2016
Chevron Phillips Chemical 1.5 Cedar Bayou, Texas Mid- to late-2017
Dow Chemical 1.5 Freeport, Texas 2017
Formosa Plastics 1.2 Point Comfort, Texas 2017
56JANUARY 2014|HydrocarbonProcessing.com
Natural Gas Developments
to secure European feedstock availability
and renew its aging infrastructure over
the long term.
Present estimates state that 33% of
crackers in Europe will become uneco-
nomical by 2015. For major players, such
as Shell, the level of capital required, the
high price of construction work, and the
significantly higher margins available
from exploration and production, have
made selling the only option.
Furthermore, EU regulations related
to fuel quality and emissions add a heavy
and sometimes conflicting burden on
operators in the region, placing the EU at
a major competitive disadvantage, ac-
cording to Europia, the European petro-
leum industry association. Instead, firms
in countries such as Saudi Arabia, Brazil
and South Korea are investigating build-
ing their own crackers on US soil.
Propylene panacea. At this stage, the
coproducts formed from naphtha crack-
ing begin to increase in importance.
A key effect of the ethane surge on the
petrochemical market is the reduction in
coproduct volumes that have occurred.
Naphtha cracking produces a mixture
of coproductsnamely propylene (C
3
)
and butadiene (C
4
)and yields approx-
imately 30% ethane. Cracking ethane
produces a yield of about 80% ethylene,
but hardly any propylene or butadiene.
The trend toward building ethylene-only
plants, and the decrease in the building
of new FCC units, means that traditional
sources of propylene production will not
be able to keep up with demand, which
is estimated to be growing at 5%6% per
year globally.
The resulting shortage in propylene
supply has increased prices and prompt-
ed the announcement of a number of
on-purpose propylene projects in North
America, which together could pump
enough propylene into the market to re-
duce the demand gap to 750,000 metric
tpy. However, according to some ana-
lysts, even this extra capacity will not be
able to satisfy huge global demand, par-
ticularly from Asia, which, like Europe,
traditionally relies on naphtha cracking.
This gap between new supply and ris-
ing demand could be the panacea that
Europe needs to get ahead. Although the
margins to be gained from ethane in Eu-
rope are somewhat limited due to trans-
portation and security costs, propylene
is in short supply, the naphtha needed to
make it is still available in Europe and the
infrastructure to produce it alredy exists.
Maintaining maturity. Europe is a
mature market, and growth is far slower
than in Asia and the Middle East. Euro-
pean infrastructure is older and cannot
compete with the super-refineries be-
ing built abroad. However, that maturity
also means that Europe has developed a
substantial advantage in terms of knowl-
edge and technology.
The petrochemical clusters around
Rotterdam and Antwerp, in particular,
employ large numbers of highly skilled
and experienced staff that have used
their know-how to greatly increase plant
efficiency. Production sites are well-inte-
grated and serve a domestic market that
is easy to reach, keeping logistics costs
low. In contrast, huge distances in the
US translate into equally large transpor-
tation costs.
To sustain its low-cost position, Eu-
ropes companies must make vital strate-
gic decisions as to how to survive, wheth-
er via consolidation, organic growth or
upstream and downstream integration.
The best use of technological know-how
and product portfolios, aging assets, and
the value and source of research and de-
velopment are all fundamental to staying
profitable over the long term.
If operators decide not to sell, ongo-
ing investment is required to keep facili-
ties competitive; assets must be kept in
optimal working condition, and employ-
ee skills must be leveraged, so that main-
tenance and safety standards remain
high. To remain competitive, it is
vital to account for all spending
and to carefully examine the effec-
tiveness of expensive processes,
such as shutdowns, contracted
costs and labor productivity.
The great shale play. These
market-specific and political nu-
ances mean that it is unlikely that
most European operators will
switch to lighter feedstock. Instead, they
will develop their propylene and buta-
diene positions to exploit the margins
created by the US ethane demand. It
is, therefore, possible that pockets of
specialized production could develop
along geographic lines, affected by and
involved in global trade, but engaged at
the same time in localized niches for a
particular product.
As more countries develop their shale
positions (China alone is estimated to
have more than two and a half times the
shale reserves of the US), the scale of
change that the US ethane extraction has
started could grow dramatically over the
coming years, altering the structure of the
worldwide petrochemical industry.
Presently, Europe is at the less positive
end of the cost curve, but if producers
move into higher-value-added products
and ensure that they stay ahead in inno-
vation and technology, that is unlikely to
remain the case for long. If ethylene is
produced on a scale large enough to cre-
ate a global supply glut, then the margins
enjoyed by producers in the US will rap-
idly decrease. Those desperate to jump
onto the ethane bandwagon might do
well to focus on the long game, for this
play is far from over.
JERRY WANICHKO is the director of
consulting operations for T.A. Cook
Consultants in North America. He
has over 25 years of international
consulting experience in several
industries, with expertise in oil, gas
and chemicals. Previously, Mr.
Wanichko was the director of operations for Fluor,
where he provided routine maintenance, reliability, and
planning and scheduling services across 13 different
petrochemical sites. Mr. Wanichko provides consulting
services to asset-intensive businesses in the refining
and petrochemicals industries. His work supports
clients with maintenance optimization, turnarounds,
outages, shutdown optimization and overall
equipment-effectiveness improvement.
As more countries develop their shale positions,
the scale of change the US ethane
extraction has started could grow dramatically
over the coming years, altering the structure
of the worldwide petrochemical industry.
Hydrocarbon Processing|JANUARY 201457
Special Report
Natural Gas Developments
J. CHOSNEK, KnowledgeOne, Houston, Texas; and
V. H. EDWARDS, IHI E&C International Corp., Houston, Texas
From LNG imports to exports: Process safety
and regulatory challenges
As natural gas becomes more abundant
in the US, the demand for liquefied natural
gas (LNG) imports is disappearing, while
the need to find markets for domestic nat-
ural gas is increasing. LNG terminal opera-
tors are thus switching from LNG imports,
which require regasification, to LNG ex-
ports, which require liquefaction, resulting
in dramatically changed processing. In liq-
uefaction, new flammable refrigerants have
been introduced in large quantities for
cryogenic cooling. These compounds can
form vapor clouds similar in size to LNG,
but the new compounds will reach further
and be more reactive than LNG vapors.
Additionally, in liquefaction, there is
significant processing involving compres-
sion and distillation at high pressures and
cryogenic temperatures. The natural gas
and the LNG itself will be at high pressures,
on the order of 600 psig to 1,000 psig, with
large process flows and inventories. Also,
the incoming high-pressure pipeline gas
needs to be conditioned to remove mer-
cury (Hg), hydrogen sulfide (H
2
S), car-
bon dioxide (CO
2
), water (H
2
O) and C
2
+
hydrocarbons prior to liquefaction.
This additional processing presents
hazards that have not been previously ad-
dressed in LNG import plants. These new
hazards must be examined in modeling
studies and also considered in facility sit-
ing to minimize risk.
1
LNG is a heavily regulated commodity,
and that poses challenges for producers.
The US Federal Energy Regulatory Com-
mission (FERC) regulates LNG through
the US Department of Transportations
(DOTs) Pipeline Hazardous Materials
Safety Administration (PHMSA). The
main regulation is 49CFR 193, which is
based on National Fire Protection Asso-
ciation (NFPA) regulation 59A.
2, 3, 4
These
regulations and standards are mainly
consequence-based instead of risk-based,
because import problems could be solved
with impoundment to comply with the
regulations. This has changed significantly
with export facilities, and guidance to, and
from, government agencies is needed.
5, 6
Import characteristics. LNG import
facilities are comparatively simple, as sum-
marized here:
Receive LNG from a ship
Store LNG
Pump to high pressure
Heat to vaporize
Put gas into pipeline.
In essence, LNG is received from a
ship and pumped to large storage tanks
that operate at low pressures. The LNG is
then pumped to high pressures, allowing
for regasification, and subsequently put
into pipelines.
Export characteristics. In contrast to
LNG imports, LNG exports are more
complex. Here are typical steps in the liq-
uefaction of natural gas:
Receive natural gas (primarily
methane) from pipeline at
high pressure
Clean gas: Remove Hg, H
2
S,
CO
2
and carbonyl sulfide
Dry gas
Remove heavies and fuel gas
Liquefy (potentially one
or more refrigeration cycles)
Where natural gas supply contains
significant nitrogen, strip nitrogen
from LNG
Send to storage tank
Pump to ship.
Natural gas is received from pipelines
at high pressure (typically 1,000 psi).
When processing it, first mercury is re-
moved by adsorption. Then H
2
S and CO
2
are removed from the gas by absorption,
typically using an aqueous amine solvent.
The wet gas is then dried and cooled
and heavies are removed and sent to frac-
tionation, where byproduct condensate
is sent out for sale. Next, the lean gas is
liquefied by refrigeration, and, if it con-
tains significant amounts of nitrogen, it is
stripped before sending the LNG to stor-
age. From storage, LNG is pumped to an
LNG tanker for export.
Process chemicals. TABLE 1 contrasts
the process chemicals in LNG regasifica-
tion and natural gas liquefaction to LNG.
Import safety issues. LNG import is
not without its challenges. These are the
primary sources of process hazards:
TABLE 1. Contrasts in process chemicals
in LNG regasication and natural gas
liquefaction
Regasication
LNG (predominantly methane)
Natural gas
Nitrogen
Liquefaction
LNG (predominantly methane)
Methane
Nitrogen
Carbon dioxide
Hydrogen sulde
Water
Condensate (C
3
+ hydrocarbons)
Propane, propylene
Ethane, ethylene
Butanes
Mixed refrigerant
Amine
Natural Gas Developments
LNG handling, transfers
and releases
Cryogenic temperatures
Fire
Explosion (low probability due to
low congestion and low reactivity)
Asphyxiation.
Accidental releases of LNG pose all of
the above hazards, but explosion hazards
are comparatively low because the sim-
plicity of the process leads to low conges-
tion, and the high concentration of meth-
ane keeps reactivity low.
Export safety issues. Liquefaction has
all of the challenges of LNG importation,
plus quite a few others:
Handling of high-pressure and
low-temperature refrigerants
High processing temperatures
(natural gas pre-treatment)
Higher-intensity fires
Explosion (higher probability,
higher congestion and reactivity)
Toxic exposure from H
2
S present in
the incoming natural gas
Training
Facility siting.
Because natural gas liquefaction pro-
cesses typically contain some process
streams rich in C
2
+ hydrocarbons, there is
a higher risk of explosion from these more
reactive compounds. In addition, the great-
er process complexity increases conges-
tion, along with more potential leak sites.
H
2
S removed from the natural gas and
concentrated during purification poses a
toxic exposure hazard in the event of a re-
lease. The use of refrigerants or refrigerant
mixtures adds to the hazards of handling
and storing of these materials. These ma-
terials are typically used in closed loops,
where large quantities are evaporated
and then recompressed to high pressures.
These materials have a much higher po-
tential of fire and explosion than methane.
The added complexity makes training
of personnel more complex, and, at a new
site, it represents new hazards for existing
or newly occupied buildings.
Regulatory agencies. LNG facilities
built within the US must meet the require-
ments of a number of regulatory agencies
(TABLE 2). The most specific requirements
are those of FERC and PHMSA, which
require that LNG facilities be designed to
comply with NFPA 59A and with other ap-
plicable industry codes and standards.
2, 3, 4
Non-governmental organizations also
often actively promote the strict enforce-
ment of existing regulations and the ag-
gressive interpretation of existing law.
Import challenges. Current US regu-
lations focus on LNG import facilities
(TABLE 3). FERC is the lead federal agency
and, with PHMSA, it regulates domestic
LNG facilities through 49 CFR 193. This
regulation also draws heavily on NFPA 59A.
FERC requires a detailed lifecycle ap-
proach to monitor and approve the siting,
engineering design, construction and op-
eration of LNG facilities. FERC normally
prepares the environmental impact assess-
ment for new LNG facilities. In addition,
the US Coast Guard has regulatory au-
thority over waterfront LNG import and
export facilities.
4
US states also have veto power over
LNG facilities through delegated federal
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Natural Gas Developments
regulations such as the Coastal Zone Man-
agement Act, the Clean Water Act and the
Clean Air Act.
Export challenges. Existing federal reg-
ulations mention natural gas liquefaction
only briefly, since the primary rulemaking
focus was for LNG imports.
As previously mentioned, FERC
and NFPA 59A are consequence-based
(TABLE 4). NFPA 59A requires that a
design spill does not surpass the limits
shown in Table 4 at a property line with
only passive mitigations (like dikes, fixed
barriers and gravity-flow impoundments).
The LNG tanks in the facility are also in-
cluded in the exclusion zone for radiation
and overpressure.
FERC recently clarified the conditions
for the piping ruptures, providing initiat-
ing frequencies for breaks and ruptures
based on valve count, pipe lengths and
diameters rather than for full-bore breaks
for all pipe sizes.
5, 6
This more reasonably
defined a design spill than the traditional
worst case scenario, but left intact the con-
sequence to be avoided and the restriction
on using only passive mitigations.
A consequence-based approach is very
difficult for complex processing opera-
tions, where releases cannot be mitigated
by passive means. One such example is
a high-pressure release at an elevation
where there is no liquid pool formation,
which means there is no possibility for im-
poundment of the spill.
High complexity. Natural gas lique-
faction and export is a safe and proven
technology, and it poses fewer hazards
than many other chemical manufacturing
processes. However, conversion of LNG
import terminals to liquefaction facilities
requires more complex processing and
involves significant inventories of much
more hazardous compounds. Therefore,
the careful application of industry best
practices in the conversion of LNG import
terminals to LNG export is essential.
Better regulations, based on dialog with
regulatory agencies and a shift from conse-
quence-based regulations to a process safe-
ty risk-based approach would be helpful for
future natural gas liquefaction plant proj-
ects.
1
In addition, improved modeling tools
and a better understanding of potential ef-
fects on the community are needed.
LITERATURE CITED
Literature cited available at HydrocarbonProcessing.com.
Author biographies can be found online at
HydrocarbonProcessing.com.
TABLE 2. Agencies regulating LNG in the US
US Federal Energy Regulatory Commission (FERC)
US Department of Energy (DOE)
US Department of Transportations (DOTs) Pipeline and Hazardous Materials
Safety Administration (PHMSA)
US Department of Homeland Security (Coast Guard)
US Environmental Protection Agency (EPA)
US Fish and Wildlife Service
National Oceanic and Atmospheric Administration (NOAA)
State and local health, safety and environment (HSE) bodies and utility agencies
TABLE 3. Principal regulations pertaining
to LNG in the US
US FERC
Federal executive branch: Veto power
US DOT (PHMSA)
US Department of Homeland Security
US Coast Guards Waterway Suitability
Assessment
US EPA
States: Veto power
Coastal Zone Management Act
Clean Water Act
Clean Air Act
TABLE 4. Consequence-based FERC
regulatory criteria
Exclusion zones (at the property line) from a
release caused by a design spill. This means
an LNG pipe break will last 10 minutes and
only passive mitigations are allowed.
lower ammable limit
1,600 Btu/hr-ft
2
thermal radiation
1 psi overpressure
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NH
4
+
+ R
3
N r R
3
NH
+
+ NH
3
2HCN + O
2
+ 2H
2
S + 2R
3
N r 2R
3
NH
+
+ 2SCN
+ 2H
2
O
Oxygen incursion, FCCs and vacuum tower ofgas
2H
2
S + 2O
2
+ 2R
3
N r 2R
3
NH
+
+ S
2
O
3
=
+ H
2
O
SO
2
breakthroughs (Claus TGUs)
2H
2
S + 4SO
2
+ H
2
O + 6R
3
N r 6R
3
NH
+
+ 3S
2
O
3
=
S
2
O
3
=
+
5
2O
2
r 2SO
4
=
82JANUARY 2014|HydrocarbonProcessing.com
Process Optimization
its way into the amine system with the H
2
S-containing gases.
HCN forms in various processes within a refinery; HSSs form in
the amine system. Once in the amine system then, various con-
ditions and the presence of other contaminants allow some of
the HCN to be converted into HSS anions. The rest of the HCN
either goes overhead to the sulfur plant, or it gets blown down
with NH
3
and enters the sour water system.
HCN in sour water. A recent case study shows a rather surpris-
ing distribution of HCN in a SWSin this case, a packed tower.
TABLE 2 shows the composition and flow of this typical refinery
sour water stream. FIG. 2 shows the SWS setup, configured to re-
turn all overhead vapor condensate to the stripper. The SWS was
5.5 ft in diameter, and we used 33-ft and 48-ft beds of random
packing to assess the effect of packed depth on stripped water
quality. The overhead pressure was 22 psig, and for this case
study, a reboiler duty of 33 MMBtu/h was selected to achieve
100 ppmw of ammonia in the stripped water. The preheater sent
245F sour water feed to the top of the column.
With the 33-ft deep bed, the stripped water was simulated
to have 100.5 ppmw NH
3
and 12.5 ppmw HCN, with unde-
tectable H
2
S. With the 48-ft deep bed, the corresponding per-
formance metrics were 28 ppmw NH
3
and 4.5 ppbw HCN. Of
course, in condensing water from the stripper overhead, a lot
of the gases already stripped (in Stream 3) are reabsorbed into
the condensate (73% of the NH
3
, 70% of the HCN, and 51% of
the H
2
S) and are returned to the stripper. This is unavoidable
if the stripped gas is to be further processed for sulfur recovery
without overloading the system with water vapor, but it may be
worth noting that a lot of energy is expended to strip and re-
strip the same contaminants repeatedly.
Perhaps the most surprising aspect of HCN in the SWS is its
distribution across the column itself. FIG. 3 (left panel) shows
how the concentration of HCN in the water phase changes with
vertical position within the packed beds of two different depths.
FIG. 3 (right panel) shows the corresponding temperature pro-
files. The lower temperature near the top of the column is not
Stripped water
Feed heater
Mixer-1
Tear
Sour water
11
14
3
5
8
10
9
13
12
4
2
1
Flash
Flash gas
SWS
Condenser
Accumulator
Outlet-1
7
6
FIG. 2. SWS configuration.
50
0 500 1,000
HCN in water, ppmw
1,500 2,000
45
40
35
30
25
D
i
s
t
a
n
c
e
f
r
o
m
t
o
p
,
f
t
20
15
10
50
245 250 255 260 265
Vapor temperature, F
45
40
35
30
25
D
i
s
t
a
n
c
e
f
r
o
m
t
o
p
,
f
t
20
15
10
5
0
5
0
33 ft
48 ft
33 ft
48 ft
(a) (b)
FIG. 3. Profiles of HCN in water, and of vapor temperature.
TABLE 2. Renery sour water
Temperature, F 100
Pressure, psig 9
Flow, bpd (gpm) 16,500 (480)
Composition, ppmw
CO
2
50
H
2
S 8,000
HCN 300
NH
3
4,500
Thiocyanate 36
Chloride 9
Hydrocarbon Processing|JANUARY 201483
Process Optimization
caused by sour water that is being fed too coldin fact, the sour
water enters the column with the liquid just above its bubble
point with 0.3% vapor. The bubble point is a function of the
composition of the water with respect to the volatile acid gases
and NH
3
.
1
On the other hand, temperature also affects HCN
solubility in water. As a result, the temperature profile has a pro-
found effect on the HCN profile in the stripper. HCN that was
removed from the water in the reboiler and in the bottom part
of the column is partially reabsorbed near the top of the column
where the temperature is 14F to 15F colder.
Although the original sour water in this theoretical study
contained only 300 ppmw HCN, water entering the top of the
column contained 875 ppmw because of HCN reabsorption
into the returned condensate. Peak concentrations in the tower
are simulated to be about 1,530 ppmw and 1,580 ppmw HCN
for the 33- and 48-ft beds, respectively. These are some five
times the concentration in the original sour water feed. The cor-
responding HCN level in the vapor is 825 ppmv. These elevated
concentrations have a much higher tendency to corrode steel,
so this may go some way towards explaining the need for expen-
sive upgraded metallurgy in the SWS overhead system. As can
be seen from the figure, HCN stripping is far poorer than one
might have expected, even accounting for the higher HCN con-
tent of the column feed. In the case of the 33-ft bed, the bulge
occupies the top half of the column, rendering half the column
ineffective for HCN removal. When the bed depth is increased
to 48 ft, the HCN bulge profile and peak value remain virtu-
ally identical. Increasing the bed depth by 15 ft has allowed the
HCN profile to become what it might have been expected to
be without the bulge. Other conditions being the same, HCN
(a) 1.2 lb steam/gallon (b) 1.4 lb steam/gallon
0
0 100 200
HCN in sour water, ppmw
300 400 500
50
N
H
3
s
t
r
i
p
p
e
d
w
a
t
e
r
,
p
p
m
w
29
30
31
32
33
34
35
36
37
0 100 200 300 400 500
HCN in sour water, ppmw
N
H
3
s
t
r
i
p
p
e
d
w
a
t
e
r
,
p
p
m
w
100
150
200
250
FIG. 4. Effect of sour water HCN level on residual NH
3
in treated water.
35
30
25
20
15
10
5
0
0 500 1,000 1,500 2,000
25
50
100
200
300
400
500
Max
2,500
HCN in sour water, ppmw
D
i
s
t
a
n
c
e
f
r
o
m
t
o
p
,
f
t
35
30
25
20
15
10
5
0
0 500 1,000 1,500 2,000
HCN in sour water, ppmw
D
i
s
t
a
n
c
e
f
r
o
m
t
o
p
,
f
t
(a) 1.2 lb steam/gallon (b) 1.4 lb steam/gallon
25
50
100
200
300
400
500
Max
FIG. 5. Effect of sour water HCN level on HCN profiles and on the position and size of the composition bulge.
84JANUARY 2014|HydrocarbonProcessing.com
Process Optimization
can be stripped to very low levels but only by using more bed
depth. The reason for the deeper bed requirement is the pres-
ence of a very significant bulge and, consequently, a very large,
non-functional section of packed bed in the column.
Higher HCN levels in the sour water cause higher residual
NH
3
in the treated water. In FIG. 4, this is shown in the left and
right panels, which, respectively, correspond to 1.2 lb and 1.4
lb of 50-psig saturated steam per gallon of water treated. The
high-performance random packing was 33.5 ft deep. At the
lower steam consumption rate, the effect of HCN is significant,
but at the higher, more-typical rate of 1.4 lb/gal, the effect is
somewhat more marginal.
FIG. 5 shows how the HCN levels in the raw water affect the
HCN profiles in the SWS. The size of the peak, of course, in-
creases with the HCN content of the raw water. Furthermore,
the peak occurs higher in the stripper, the higher is the HCN
content of the original sour water. Higher steam rates push the
bulge further up the tower and reduce its size; nevertheless,
the bulge still exists even at this higher steam rate, and a size-
able portion of the stripper is completely ineffective in terms of
what might have been expected had the existence of the com-
position bulge not been known.
Wrap up. The discovery that HCN accumulates internally
within a SWS has been reported here for the first time. The
use of mass transfer rate-based simulation has allowed this sig-
nificant internal recycle of HCN to be quantified in unprec-
edented detail. The discovery of this recycle may go some way
toward explaining observed tower corrosion rates in existing
plants and may permit better informed material selection de-
cisions to be made for plants still in the design phase. We spec-
ulate that such a distribution of HCN probably always occurs
in both amine regenerators and SWSs because the mechanism
by which it forms is through the connection between solubil-
ity, vapor pressure, and local temperature, and this exists in
both types of units.
NOTE
1
Bubble point is the temperature at which the vapor pressure over the solution is
equal to the system pressure. It is greatly affected by the presence of volatile, dis-
solved components in the water.
RALPH WEILAND founded Optimized Gas Treating in 1992 and has been active
in Canada, Australia and the US in basic and applied research in gas treating
since 1965. He also spent 10 years in tray R&D with Koch-Glitsch LP, Dallas, Texas.
He has bachelors, masters and Ph.D. degrees in chemical engineering from
the University of Toronto.
NATE HATCHER is the vice president of technical development for Optimized
Gas Treating. He has spent most of his 19-year career in gas treating and sulfur
recovery, first in design and startup with Black & Veatch Pritchard, and later in
plant troubleshooting and technical support with ConocoPhillips, where he was
also involved with developing process simulation tools.
CLAY JONES is the principal technical development engineer with Optimized
Gas Treating. He has a bachelor of science degree from McNeese State
University and a masters degree from the University of New Mexico. Before
starting his current job in 2012, Mr. Jones spent 11 years with ConocoPhillips in
sulfur plant and amine unit operations.
Select 158 at www.HydrocarbonProcessing.com/RS
PROCESS AUTOMATION
Human-machine interfaces are the future of petrochemical refining P87
Automation news in brief P88
CORPORATE PROFILES
ABB IncAnalytical Measurement P91
2014
Special Supplement to
IsraelOn the Verge of Becoming an Exporter of Natural Gas
The State of Natural Gas in Israel
A series of recent discoveries by Noble Energy, the
largest operator in the region, has increased the
discovered gross resources of natural gas in the area
to approximately 40 trillion cubic feet (Tcf). The Tamar
natural gas eld, rst discovered in 2009, came online in
March 2013 and is estimated to contain 10 Tcf of natural
gas. Deliverability at the eld is expected to reach 1.2
billion cubic feet per day (Bcfd) gross by mid-2015,
and an additional expansion to 1.5 Bcfd is planned
for 2016. The Leviathan eld, discovered in December
2010, is the largest in the region, with an estimated
recoverable gross mean resource of 19 Tcf of natural gas.
Multiple phases of development in the eld are being
progressed toward sanction, and production is expected
to come online in 2017.
Additional smaller gas elds have also been
discovered, including the Dalit and Tanin elds, and
additional exploration is planned. Noble Energy, with
partner Delek Group and its subsidiary, Avner Oil and
Gas Exploration, are the regions main operators.
Demand for natural gas is strong in Israel and the
region, and Israel is exploring its regional and LNG
export options. As reported in World Oils Eastern
Mediterranean regional report in February 2013, Israel
consumed 187 Bcf of natural gas in 2010, with 40% of the
nations electricity generated from natural gas. Natural
gas production from new reserves will be increased,
and the transmission and distribution systems will
be upgraded. Overall, net production is projected to
increase to approximately 575 MMcfd in 2018 and then
increase over the next ve years to 1.1 Bcfd in 2023.
Developing Policy
The Israeli government is actively determining its natural
gas policies, as well as evaluating plans to develop the
infrastructure needed to process and transport natural
gas. The Israeli cabinet (Knesset) approved a plan to
reserve 60% of natural gas for domestic use, projected
to be around 540 Bcm over the next 25 years. The
remaining 40% will be available for export, which is
expected to earn $50 billion in the next 25 years. The
decision was upheld when Israels High Court rejected
appeals to the decision to export 40% of the natural gas.
Established Oil Potential in the Region
Signicant exploration potential remains in the region.
Oil potential is estimated at approximately 3 Bbbl in the
deep Mesozoic play in both Cyprus and Israel and there is
4 Tcf gross of natural gas potential in Cyprus. Exploration
drilling is expected to resume in the area in late 2014
or early 2015.
Key Players
Noble Energy, with partners Delek Group and Avner Oil
and Gas Exploration, are the main operators responsible
for the discovery and development of the Tamar and
Leviathan elds.
Woodside Energy. Since 2012, Noble Energy and partners
have been in negotiation with Woodside Energy on a deal
to provide a working interest in the ofshore Leviathan
licenses to the latter. Woodside Energy is Australias
largest producer of LNG, with over 25 years of experience.
Their expertise in LNG would be an important asset in
the development of LNG or FLNG processing facilities in
the region.
Cyprus. Recent discoveries in Cyprus have made it a
pivotal player in the region. Noble Energy and partners
are also drilling of Cyprus, where they were responsible
for the Cyprus-A discovery, estimated to contain 5 Tcf of
natural gas. Cyprus is now positioned to be an energy
exporter. Total and eni are also exploring opportunities
in the region. The fragile state of the Cypriot economy
has created an urgency to monetize its natural gas
supply. Many in Cyprus are keen to develop an LNG
facility that is estimated to cost $12 billion. Israels
participation in the project would lessen the nancing
burden on Cyprus. Such a facility would also open the
door for exports to Europe, Asia and beyond.
Turkey. A partnership with Turkey remains a possibility,
though an unsteady political relationship between the
Israeli and Turkish governments decreases the odds. If
a partnership were to be formed, existing and potential
Turkish pipelines would provide lucrative access to
consumers in the European and Asian markets.
Jordan. Jordan has been approved by the Israeli High
Court to receive gas exports and was targeted as a
potential market by Noble Energy.
Egypt. Egypt began exporting gas to Israel in 2008, but
the contract was cancelled in 2012. Along with Jordan,
Noble Energy listed Egypt a potential market in 2012.
A Recap of Possible Scenarios:
A) LNG plant in Cyprus which utilizes gas from both
Israeli and Cyprus elds
B) FLNG located in the Eastern Mediterranean sea
C) Israeli gas connected to Turkey via pipeline
An Opportunity for Collaboration
and Networking at the 2014 Eastern
Mediterranean Gas Conference
The Eastern Mediterranean Gas Conference will be held
1012 March 2014 and will give special focus to the latest
market and technology trends related to the exploration,
drilling, production, processing and marketing of
natural gas ofshore Israel and throughout the Eastern
Mediterranean. Topics to be discussed include resource
potential, leasing/permitting, development plans,
infrastructure requirements, regulations and more.
Noble Energy will be the lead sponsor for the
event and was also lead sponsor of the inaugural
Eastern Mediterranean Gas Conference, held in April
2013, where the companys Chairman and CEO Charles
Davidson delivered the keynote address. EMGC 2014
will be held at the Hilton Tel Aviv, Independence Park,
Tel Aviv 63405, Israel. For more information, visit
http://www.emgasconference.com.
TABLE 1. MAJOR OFFSHORE ISRAEL FIELDS
Field Discovery Production Est. size, Bcf
Mari-B 2000 2004 1,000
Tamar 2009 2013 9,700
Dalit 2009 2013 700
Leviathan 2010 2016 19,000
Dolphin 2011 Pending 81
Tanin 2012 Pending 1,2001,300
40 Tcf
Discovered gross resources
of natural gas in the Eastern
Mediterranean region.
19 Tcf
Projected amount of natural gas
in the Leviathan eld, expected
to come online in 2017.
1.1 Bcfd
The expectation for natural
gas sales in 2023.
$50
BILLION
Revenue natural gas exports are
projected to bring to Israel over
the next 25 years.
40% OF
PRODUCTION
Approximate percentage the
Israeli government has made
available for export.
HYDROCARBON PROCESSING | JANUARY 2014 | PROCESS AUTOMATION P87
PROCESS AUTOMATION
COREY FOSTER represents Valin Corp. in the
Northern California automation market. Valin is
a technical solutions provider for the technology,
energy, life sciences, natural resources and
t ranspor t at i on i ndust ri es. The company
offers personal ized order management ,
onsite field support, training and applied
engineering services utilizing automation, fluid
management, precision measurement, process
heating, filtration and fluid power products.
Mr. Foster, who has 15 years of experience in
automation specializing in electromechanical
motion control, recently corresponded with the
Hydrocarbon Processing editorial team to share
his thoughts on automation market innovations
and the future of the refining industry.
HUMAN-MACHINE INTERFACES ARE THE
FUTURE OF PETROCHEMICAL REFINING
What specific advances or innovations
do you think will be the driving force
behind the future of the petrochemical
refining industry?
The future of the petrochemical re-
fining industry will be driven by human-
machine interfaces (HMIs) pushing
information to where it is needed. An
HMI that pushes production, quality
and alarm information to the right level
of user or management anywhere in the
world has the ability to increase the vis-
ibility and reaction time to problems as
they arise. This type of innovation will
help with plant coordination and trou-
bleshooting recovery.
In a refinery using control architecture
implemented decades ago, when a sen-
sors report back to the controls is out of
the ordinary, the controls will throw an
alarm. This is typically in a central con-
trol room removed from the location of
the sensor and the problem. There may or
may not be any indication of this alarm at
the location of the problem, and if there
is, it is probably just a flashing light on an
electrical panel or HMI somewhere in the
vicinity. If no one is there to see the alarm,
then response times to certain problems
can be unnecessarily long.
A solution currently available that
helps shorten these lengthy response
times is when that information is
pushed to wherever the user wants it to
go. This includes e-mailing or texting an
alert to a specific person. If the first user
does not respond in an allotted time, the
controls system can automatically esca-
late it to the next person. Then the users
can respond to the alarm and appropri-
ately react from wherever they are. This is
the kind of modern advancement the in-
dustry needs to embrace in order to keep
moving forward.
There could also be opportunities for
dynamic context-sensitive information.
What if users could then open a Web
browser or app on their smart phones and
look at more details about the alarm to
see its severity, location and perhaps even
a suggested resolution?
What could be possible with dynamic
context-sensitive information?
I think the best way to describe what
I mean is through an example. Think of
a copier machine that is jammed and it
gives you information on fixing the prob-
lem. Or think of the help buttons in pro-
grams that give you assistance on a specif-
ic topic, depending on what you are doing.
Both of those are context-sensitive, but
they are still static and local to the appli-
cation. What if these applications could
be dynamically updated as solutions are
developed for commonly occurring prob-
lems? A copier machine that utilizes this
dynamic context-sensitive information
would be able to display fixes for common
problems and potentially warn you before
a problem even occurs.
Hypothetically, a company that imple-
ments these systems all up and down a
pipeline can update a PDF or webpage
that is linked to all of their other custom-
ers systems, creating a large network
of helpful information for everyone in-
volved. OEM customers would always be
sure to have the latest and greatest sup-
port information before they even have a
problem. FAQs on demand!
Any other new innovations
you see that will impact refiners?
Other notable new innovations include
traceability, authorization and escalation
when dealing with HMIs. Many times,
problems are caused by operators pushing
buttons they shouldnt be, entering incor-
rect information, and then not being truth-
ful about what they did. Being able to re-
cord their steps would give accountability
to the operators, along with traceability on
their actions, and thus allow for the gather-
ing of troubleshooting information. This
application has tremendous value in every
other industry where the same problems
exist. This kind of technology will go a long
way in improving operator performance.
Additionally, most control systems
these days provide some sort of security
or authorization level capability. These
features are especially useful in the phar-
P88 PROCESS AUTOMATION | JANUARY 2014 | HydrocarbonProcessing.com
PROCESS AUTOMATION
maceutical industry, which is regulated by
the US Food and Drug Administration
(FDA) and requires strict security stan-
dards (21CRF11). Those same capabili-
ties are also well used in other industries
for the same purposes, even if deemed less
critical. The innovations that are taking
place in newer tools aimed at 21CFR11
compliance allow a user to make certain
adjustments only after receiving a man-
agers approval, ensuring that the operator
isnt going to make a mistake that a higher-
level user would have detected.
Where and how have these
innovations already been
implemented? What effects
have they had?
The idea of pushing information to
the right place has been used all over the
manufacturing industry. HMIs are just
one specific way of using this innovation
in a pipeline or facility application. Great
visibility means greater production ef-
ficiency and throughput, no matter what
the industry.
The notion of dynamic context-sen-
sitive information is a relatively new idea
that requires more thought, planning, pro-
gramming and updating. Because of this,
there are very few applications that I know
of using this technology, since most com-
panies prioritize project completion first.
Cost efficiency would always be a concern
with this application, which, unfortunate-
ly, has limited its scope up until now. How-
ever, the effects on efficiency and timeli-
ness would be immense if this technology
was utilized on a wider scale.
What are the biggest obstacles
to improving the industry, and
how do you overcome them?
The most pressing obstacle when it
comes to implementing new technology
is the resistance to change. The industry
is inherently conservative and doesnt al-
ways welcome change with open arms.
Some good examples of this resistance
to change come from my experience in
selling valves and filters to the pharmaceu-
tical industry. When I would present pro-
cess engineers with a new valve and filtra-
tion technology that would improve their
process control, yields and process times,
their first question was always, Who in
the pharmaceutical industry is already us-
ing this? I found that, in each case, the
new technology had to be vetted and ap-
proved in an intensive small-scale test pro-
cess in order for it to even be considered.
While many industry professionals are
resistant to change for safety, financial or
regulatory reasons, we in the automation
industry try to make them see the poten-
tial that technologies such as the ones Ive
described can offer. We have to start in
small bites in the industry to get them fa-
miliar with what is truly possible.
AUTOMATION NEWS IN BRIEF
HONEYWELL SEEKS TO FULLY
INTEGRATE TERMINAL OPERATIONS
Honeywell has announced its next
generation terminal manager server soft-
ware, offering full integration of fire and
gas, closed-circuit television (CCTV),
access control, digital video manager and
enterprise building integrator systems.
The new terminal manager server soft-
ware includes the industrys first configu-
rable workflows for faster setup.
This release marks a major advance
in terminal automation for an integrated
solution built around a standard platform
that also improves safety and security,
said Richard Thompson, general manager
of Honeywell Enraf.
Incorporating more than six decades
of experience providing solutions for ter-
minal operators, Honeywell Enraf s ter-
minal manager is a Web-based solution
for managing the entire operation in bulk
terminals. Built on Microsoft Windows, it
is used to monitor and control all critical
processes from receipt to dispatch. Inter-
facing with enterprise resource planning
(ERP), access control, loading and un-
loading, workflow management, inven-
tory management, product reconciliation
and documentation systems, it improves
control in real time.
Tighter integration means better con-
trol of security, safety, inventory manage-
ment, reconciliation, order management
and workflows, Mr. Thompson said.
Ultimately, it means operators are more
likely to achieve their business goals.
The configurable workflows and a
modular approach in the latest release
of terminal manager significantly reduce
the time needed to build the system by
minimizing or eliminating the need for
customization to specific operations.
It enables users to quickly set up the
software to give a broad overview and in-
depth control of key parameters such as
product availability and movement, tank
status, alarms, orders, shipments, shifts,
loading bay availability, entries and exits.
Honeywell Enraf s terminal manager
is suitable for all bulk terminals and is
compliant with the latest Experion PKS
SCADA for medium- and large-size ter-
minals, and with Experion HS for small-
er terminals.
INVENSYS RELEASES
CLOUD-HOSTED HISTORIAN
Invensys, a supplier of industrial soft-
ware, systems and control equipment to
the hydrocarbon processing industry,
has released a new, cloud-hosted histo-
rian edition that will enable customers
to safely share more plant data with their
workers while lowering their IT burden.
Building on a base of more than 70,000
licenses for this product, the companys
new online edition can help reduce im-
plementation time, provide universal ac-
cess and deliver alternative pricing mod-
els for expanded industry use.
This offering uses a multi-tier histo-
rian database architecture, storing data
from one or more local plant-level his-
torians onto a cloud-hosted, enterprise-
wide instance. Data flows only one
wayfrom the local historians to the on-
line historianand it is protected from
cyber intrusion so it can safely be made
available to more workers for better trou-
bleshooting, reporting and analytics.
The solution leverages Windows cloud
services from Microsoft Corp., so there
is no software to install or set up, saving
on valuable IT resources and reducing
capital requirements. This service will be
offered as a yearly subscription, based on
the number of users accessing the data.
Reporting and analytics are delivered
to the historian online edition through
standard tools, including Invensys desk-
top reporting and analysis client, along
with its mobile reporting solution. Sys-
Interested in Presenting
at GTL 2014?
Call for Abstracts
Gulf Publishing Company is pleased to announce that the second
annual GTL Technology Forum will be held in Houston, Texas July
3031, 2014. If you would like to participate as a speaker, we invite
you to submit an abstract for consideration by our advisory board.
Suggested topics and areas of interest includes:
GTL- Fischer-Tropsch
GTL- MTG/Methanol
GTL products: fuels, lubes, specialty products, etc.
Economics, properties, performance, etc.
Floating GTL
Financing of GTL projects by owners, equity, banks
Permitting issues (requirements, any thresholds, timing, etc.)
And more.
For a full list, visit GTLTechForum.com
Dont miss this unique opportunity to share your
knowledge and expertise with your peers in
the industry.
Submission Deadline: January 31. Abstracts should be
approximately 250 words in length and should include all authors,
afliations, pertinent contact information, and the proposed
speaker (person presenting the paper). Please submit via
e-mail to EnergyEvents@GulfPub.com by January 31.
Speaker Inquiries: Please contact Melissa Smith,
Events Director, Gulf Publishing Company, at
Melissa.Smith@GulfPub.com or +1 (713) 520-4475.
Sponsor/Exhibitor Inquiries: Please contact
Lisa Zadok, Events Sales Manager, at
Lisa.Zadok@GulfPub.com or +1 (713) 525-4632.
GTLTechForum.com
GTL Advisory Board:
Arun Basu
Institute Engineer
Iain Baxter
Business Development Director
Adrienne M. Blume
Managing Editor
Carl Hahn
Director, Sales and
Process Technology
Mark LaCour, P.E.
Project Development
and Procurement
Syamal Poddar
President
Mark Schnell
General Manager, Marketing,
Strategy and New Business
Development
Paul Schubert
Chief Operating Ofcer
Neils Udengaard
Timothy Vail
President & CEO
Norris Conference Centers
CityCentre Houston, TX
P90 PROCESS AUTOMATION | JANUARY 2014 | HydrocarbonProcessing.com
PROCESS AUTOMATION
tem users can view the data via multiple
devices, including desktop PCs, laptops,
tablets and smart phones.
This online historian is the first com-
mercial offering from the InvensysWin-
dows cloud relationship, whereby the
two companies jointly develop manu-
facturing operations software that can be
hosted on the Windows platform.
In other company-related news, In-
vensys shareholders have approved the
companys acquisition by Schneider Elec-
tric. At the investor meeting, held back in
October in London, a majority of voting
shareholders (representing 99.94% by
value of those voted shares) voted in favor
of the resolution to approve the scheme.
At the general meeting of shareholders,
99.95% of the voted shares were in favor
of the special resolution to approve the
scheme, well above the 75% threshold
required. Completion of the transaction
remains subject to the satisfaction or
waiver of certain other conditions set out
in the scheme document.
A COST-EFFECTIVE GATEWAY
TO VIRTUALIZATION
Rockwell Automation has released
an Industrial Data Center product, en-
gineered specifically to help manufac-
turing and production companies take
advantage of the benefits of a fully virtu-
alized environment. This product offer-
ing helps reduce costs by decreasing the
server footprint, extending application
longevity, and improving infrastructure
reliability with management and recov-
ery features.
Although there has been a prolifera-
tion of virtualized servers on the plant
floor in recent years, moving to a virtual-
ized environment can be costly and time
consuming for production businesses,
said Matt Fordenwalt, a Rockwell Auto-
mation executive. The Industrial Data
Center offering from Rockwell Automa-
tion is a cost-effective way for production
companies to more quickly take advan-
tage of this growing trend.
The standard, pre-configured infra-
structure offering represents a complete
turnkey solution that includes hardware,
software, factory assembly, onsite con-
figuration, documentation and tech sup-
port from Rockwell Automation. The
goal for this product is to reduce cost of
ownership and help increase realized sav-
ings for industrial companies over the
lifetime of assets through virtualization.
The Industrial Data Center bundle also
incorporates technology from several IT
providers and the companys strategic al-
liance partners Cisco and Panduit. This
packaged solution includes unified com-
puting system (UCS) servers and cata-
lyst switches from Cisco, and is built in
accordance with the industrial best prac-
tices documented in the Rockwell Auto-
mation and Cisco Converged Plantwide
Ethernet Architectures. Validation and
assembly, led by Panduit, extends conver-
gence to the computing level by combin-
ing their expertise in the enterprise and
data-center markets with Rockwell Auto-
mation industrial expertise.
The Industrial Data Center offering
is available in two versions. One model
is equipped with two UCS servers with
the ability to expand from 3 TB to 5 TB
of usable storage, standard virtualiza-
tion software, 24 rack units, and an op-
erating-system license. The other model
includes three UCS servers that are ex-
pandable from 6 TB to 9 TB of usable
storage, 42 rack units and the operating-
system license.
All equipment is shipped pre-assem-
bled, and also includes onsite configu-
ration and a streamlined maintenance
program that provides a single phone
number to call for support.
YOKOGAWA RELEASES
NEW PLATFORM FOR DIGITAL
MEASUREMENT
Yokogawa Corp. of America has re-
leased its new sensors with a communica-
tion platform product series for the digi-
tal measurement of pH and ORP. This
will join an existing lineup of pH/ORP
solutions that includes the companys
two-wire pH/ORP-transmitter.
The sensors with communication
platform initially consists of a module,
the pH/ORP sensor, a cable, and spe-
cialized PC software. Like its predeces-
sor, the newly released sensor is general
purpose and is suitable for a wide range
of applications. It can store digital data
and be calibrated by using the platforms
software. With these platform products,
customers should be able to reduce the
amount of maintenance work that needs
to be performed onsite, thereby improv-
ing efficiency and reducing costs.
Liquid analyzers are used in the oil,
petrochemical, iron and steel, electric
power, and water supply and wastewater
treatment industries to control the qual-
ity of raw materials and products, moni-
tor reactions and manage the wastewa-
ter treatment process. The properties of
certain solutions may cause damage to
or foul the sensors in these analyzers and
thus adversely affect measurement accu-
racy, so sensor calibration is required on
a regular basis. However, conditions vary
and it is not always safe or convenient
to perform the calibration work onsite,
which usually requires a converter to
store data and the use of standard calibra-
tion solutions. There is a need to move
this work to a safer location and also re-
duce measurement downtime.
Product features. The new item offers
better working conditions and reduced
measurement downtime. The pH/ORP
sensor is able to process digital signals and
store digital information, including cali-
bration data. Using either the PC software
or a transmitter, it can do offline calibra-
tion of these sensors in a laboratory, where
working conditions are optimal. In addi-
tion, the ability to swap out the pH/ORP
sensor and replace it with a calibrated sen-
sor onsite will significantly reduce mea-
surement downtime. Plus, with the soft-
ware, it will be possible to simultaneously
calibrate up to four sensors, significantly
shortening calibration time.
The software features an integrated
database capable of storing data for up
to 100 sensors. This enables predictive
maintenance, allowing service staff to
identify when sensor maintenance and/
or replacement is required. In addition,
there is no longer the need to go onsite
to obtain the data stored on a converter.
Major target markets. Yokogawa is keen
to have its expertise and products known
across the globe. Already, many in the
process industries use Yokogawa, includ-
ing sectors like oil, petrochemicals, iron
and steel, electric power, water supply and
wastewater treatment. Applications for
this new platform include:
Monitor the quality of treated
wastewater and neutralized water
Control the concentrations of
liquid infusion systems
Use a two-wire system to feed
power and transmits signals
through a pair of cables, reducing
wiring costs.
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For more than 40 years, ABB designs, manufactures and markets high
performance FT-IR and FT-NIR spectrometers as well as turnkey analytical
solutions for several applications. The company capabilities encompass
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physical properties of a process sample stream. ABBs advanced solutions
combine analyzers, advanced process control, data management, process
and application knowledge to improve the operational performance,
productivity, capacity and safety of industrial processes for customers.
ABB (www.abb.com) is a leader in power and automation technolo-
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while lowering environmental impact. The ABB Group of companies
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Select 159 at www.HydrocarbonProcessing.com/RS
HPI Market Data 2014
Get reliable, accurate information to drive your strategic decision-
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DATA 2014
HydrocarbonProcessing.com
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BILLY THINNES, TECHNICAL EDITOR
Billy.Thinnes@HydrocarbonProcessing.com
People
Hydrocarbon Processing|JANUARY 201493
Ashland Water
Technologies has hired
Jeff Fulgham as vice
president of marketing.
He will be based at
company headquarters
in Wilmington, Delaware.
Mr. Fulgham brings over
30 years of sales and
marketing experience,
primarily in industrial
water treatment, to this
role. He most recently
served as chief sales
and strategy officer for
Banyan Water, based in
San Francisco, California.
He was responsible
for sales, service,
strategy and marketing
for the company,
focused on driving
water conservation for
large commercial and
institutional properties.
Prior to working for
Banyan, Mr. Fulgham
spent much of his career
with General Electric Co.,
serving in a variety of
sales and marketing roles.
EXCO Resources board of
directors has appointed
Jeffrey D. Benjamin, a
long-time investor in
EXCO and an independent
member of EXCOs board,
to serve as non-executive
chairman of the board of
directors. Mr. Benjamin
has extensive knowledge
of EXCO and its business,
having served on the
board since October 2005
and prior to that from
1998 through 2003. Mr.
Benjamin is also a director
of Caesars Entertainment
Corp. and Chemtura
Corp., and is chairman of
the board for Spectrum
Group International.
Spectra Energy Corp. has
appointed Clarence P.
Cazalot Jr. to its board
of directors. Mr. Cazalot
previously served as
executive chairman of
the board of directors
for Marathon Oil Corp., a
position he retired from at
the end of 2013. With the
addition of the Express-
Platte crude oil pipeline
system into our portfolio,
we welcome Clarences
extensive exploration and
production knowledge
and history to the board,
said Bill Esrey, Spectra
Energy chairman of the
board. His insights will be
a valuable addition to the
board table, one already
filled with a wealth of skills
and expertise. Mr. Cazalot
has more than 40 years
of industry experience. He
worked as president and
chief executive officer of
Marathon Oil Corp. from
20022013.
Jacqueline Lecourtier
has agreed to chair and
lead the deliberations
of DEINOVEs Scientific
Advisory Board (SAB),
which meets twice a year.
She took her new position
at the SABs plenary
session in December. Ms.
Lecourtier is an engineer
from the ecole Nationale
Superieure des Industries
Chimiques (French Higher
National Institute of
Chemical Engineering),
and has devoted 25 years
of her career to the Institut
Francais du Petrole (IFP).
From 2006-2011, she
was scientific director of
IFPEN: French Institute of
Petroleum-New Energies.
NorTex Midstream
Partners has named
Ben Moore to lead the
company as president and
CEO. He joins NorTex with
25 years of experience in
business development,
operations and
engineering in both the
upstream and midstream
energy sectors. Prior to
joining NorTex, Mr. Moore
spent 12 years at Enstor,
Iberdrola Renewables
gas storage subsidiary,
where he served as vice
president of operations
and engineering, as
well as vice president of
business development.
Viega has appointed
long-time employee
Dalyn Cantrell as the new
vice president of sales and
marketing. Ms. Cantrell
replaced Dave Garlow,
who accepted the role as
Viega president and CEO.
Ms. Cantrell has more than
30 years of experience in
the plumbing and heating
industry, beginning her
career in 1983 in customer
service for Vanguard.
Throughout her career at
Vanguard, Cantrell worked
as a customer service
representative, customer
service manager, assistant
to the national sales
manager, director of code
services, regional manager
and, finally, national sales
manager. In 2005, when
Viega purchased Vanguard,
Ms. Cantrell moved into the
position of director of field
sales, with responsibilities
that included directing
and managing eight
regional managers and
all district managers.
Dan Hubbard has been
named vice president
for Willbros Groups gas
processing operations in
Tulsa, Oklahoma. With
this hire, the company will
officially enter the gas
processing plant market.
Mr. Hubbard has 22 years
of experience designing
modular cryogenic gas
processing plants. He joins
Willbros from Hydrocarbon
Processing Technology.
While with Hydrocarbon
Processing Technology, Mr.
Hubbard was responsible
for overseeing the design,
fabrication and installation
of gas processing, gas
treating and nitrogen
rejection plants.
Additionally, he provided
engineering consultation
and design services for gas
processing clients. Based
in Tulsa, Mr. Hubbard will
be responsible for leading
the technical development
of the companys gas
processing plant offerings.
Americas Natural Gas
Alliance (ANGA) has
elected Charles B. Stanley
to be the organizations
chairman of the board for
the 20142016 term. Mr.
Stanley is president and
CEO of QEP Resources. He
has more than 26 years
of experience in oil and
natural gas operations.
Previously, he served as a
director for Questar Corp.
Southwestern Energys
President Steve Mueller
will become vice chairman.
Mr. Mueller has led
Southwestern since 2009.
He has over 30 years of
experience in the oil and
natural gas industry.
Melissa Hockstad has
joined The American
Fuel and Petrochemical
Manufacturers (AFPM)
as vice president of
petrochemicals. Ms.
Hockstad comes to AFPM
as the association expands
its petrochemical division.
Ms. Hockstad brings to
AFPM 17 years of in-depth
industry experience, most
recently as vice president
of science, technology
and regulatory affairs
for the Society of the
Plastics Industry and
the Synthetic Organic
Chemical Manufacturers
Association, where she
served as performance
improvement director.
In other AFPM news,
the industry trade group
has promoted Brendan
Williams to senior vice
president of advocacy.
Mr. Williams joined AFPM
in 2007 and has served as
vice president of advocacy
since December 2011.
Steve Edwards is the
new chairman, president
and CEO of Black &
Veatch, succeeding Len
Rodman. In April 2013,
Mr. Edwards was named
COO of the company
and was elevated to the
top leadership position
following a transition
period. Mr. Edwards
becomes the seventh
person to serve as
president in the companys
history. Before becoming
COO, Mr. Edwards was an
executive vice president
of global EPC for Black &
Veatchs energy business.
MARKETPLACE / Gerry.Mayer@GulfPub.com / +1 (972) 816-3534
94JANUARY 2014|HydrocarbonProcessing.com
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WABASH SELLS & RENTS
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Specialty Engineering
Static Equipment
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Metallurgical and
Materials Lab
Field Service
Specialists in design, failure
analysis, and troubleshooting of
static and rotating equipment
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Hydrocarbon Processing|JANUARY 201495
Select 206 at www.HydrocarbonProcessing.com/RS
Engineering Services
Compressors Steam Turbines
Compressor & turbine performance analysis.
Compressor and turbine gas path design.
Compressor and turbine efficiency enhancements
Compressor & turbine rerates.
Troubleshooting & root cause failure analysis.
Rotordynamic & stability analysis.
Overhaul assistance & Inspection
Shop test witness services.
Commissioning & startup.
Temporary technical employees
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sales@flexwareinc.com
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SURPLUS GAS PROCESSING/REFINING EQUIPMENT
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We offer engineered surplus equipment solutions.
Bexar Energy Holdings, Inc.
Phone 210-342-7106 Fax 210-223-0018
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Hydrocarbon Processing|JANUARY 201497
ADVERTISERS INDEX / HydrocarbonProcessing.com
The first number after the company name is the page on which an advertisement appears. The second number, appearing in parentheses, after the company
name, is the Reader Service Number. There are two ways readers can obtain product and service information:
1. Go to www.HydrocarbonProcessing.com/RS. Follow the instructions on the screen, and your request will be forwarded for immediate action.
2. Go online to the advertiser's Website listed below.
Company Page RS#
Website
Company Page RS#
Website
Company Page RS#
Website
ABB Inc........................................................91 (159)
www.info.hotims.com/50992-159
AFPM .......................................................... 44
Axens ........................................................100 (53)
www.info.hotims.com/50992-53
BASF Corporation ........................................ 22 (70)
www.info.hotims.com/50992-70
BCCK Engineering, Inc. ................................. 32 (90)
www.info.hotims.com/50992-90
BiLFINGER Water Technologies ...................... 13 (55)
www.info.hotims.com/50992-55
Burckhardt Compression AG ..........................15 (79)
www.info.hotims.com/50992-79
Calculated Controls ...................................... 28 (80)
www.info.hotims.com/50992-80
CB&I ............................................................16 (51)
www.info.hotims.com/50992-51
Chart Industries .......................................... 25 (72)
www.info.hotims.com/50992-72
CIPPE ......................................................... 84 (158)
www.info.hotims.com/50992-158
DMG Gastech Conference ...............................41
DMG Gastech Young Engineer Foundation ..... 54
DMG World Heavy Oil Congress ..................... 47
Flexim Americas Corp. ................................. 59 (155)
www.info.hotims.com/50992-155
Flexitallic LP ................................................. 5 (93)
www.info.hotims.com/50992-93
Gulf Publishing Company
Construction Boxscore Database .......... 71, 96
Events ....................... 50A, 72, 76, P-86, P-89
HPI Market Data 2014.............................P-92
Marketplace....................................... 9495
Hermetic Pumpen GmbH ............................. 24 (151)
www.info.hotims.com/50992-151
Jonell, Inc ..................................................... 2 (60)
www.info.hotims.com/50992-60
Kobe Steel Ltd ............................................. 49 (81)
www.info.hotims.com/50992-81
Linde Process Plants .................................. 67 (82)
www.info.hotims.com/50992-82
Linde Process Plants .................................... 99 (83)
www.info.hotims.com/50992-83
Lurgi GmbH .................................................18 (101)
www.info.hotims.com/50992-101
Man Diesel & Turbo ...................................... 35 (102)
www.info.hotims.com/50992-102
Merichem Company ....................................... 8 (84)
www.info.hotims.com/50992-84
OHL ............................................................ 52 (153)
www.info.hotims.com/50992-153
Paqell ........................................................ 68 (157)
www.info.hotims.com/50992-157
Pentair ....................................................... 58 (154)
www.info.hotims.com/50992-154
Prosernat ................................................... 43 (152)
www.info.hotims.com/50992-152
Sabin Metals Corporation ..............................21 (68)
www.info.hotims.com/50992-68
Spraying Systems Co. .................................. 53 (66)
www.info.hotims.com/50992-66
Trachte USA ................................................ 64 (156)
www.info.hotims.com/50992-156
Weir Minerals Lewis Pumps .......................... 26 (94)
www.info.hotims.com/50992-94
Wood Group Mustang ................................... 31 (89)
www.info.hotims.com/50992-89
ZymeFlow Decon Technology ....................... 39 (92)
www.info.hotims.com/50992-92
Bret Ronk, Publisher
Phone: +1 (713) 520-4421
Fax: +1 (713) 520-4421
E-mail: Bret.Ronk@HydrocarbonProcessing.com
www.HydrocarbonProcessing.com
SALES OFFICESNORTH AMERICA
IL, LA, MO, OK, TX
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AK, AL, AR, AZ, CA, CO, FL, GA, HI, IA, ID, IN,
KS, KY, MI, MN, MS, MT, ND, NE, NM, NV, OR,
SD, TN, TX, UT, WA, WI, WY,
WESTERN CANADA
Vic Scalco
Phone: +1 (713) 520-4449
Fax: +1 (713) 520-4449
E-mail: Victor.Scalco@HydrocarbonProcessing.com
CT, DC, DE, MA, MD, ME, NC, NH, NJ, NY, OH,
PA, RI, SC, VA, VT, WV,
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Merrie Lynch
Phone: +1 (617) 357-8190, Fax: +1 (617) 357-8194
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FRANCE, GREECE, NORTH AFRICA, MIDDLE EAST,
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Catherine Watkins
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Fax: +33 (0)1 30 47 92 40
E-mail: Watkins@GulfPub.com
ITALY, EASTERN EUROPE
Fabio Potest
Mediapoint & Communications SRL
Phone: +39 (010) 570-4948
Fax: +39 (010) 553-0088
E-mail: Fabio.Potesta@GulfPub.com
RUSSIA/FSU
Lilia Fedotova
Anik International & Co. Ltd.
Phone: +7 (495) 628-10-333
E-mail: Lilia.Fedotova@GulfPub.com
UNITED KINGDOM/SCANDINAVIA,
NORTHERN BELGIUM, THE NETHERLANDS
Michael Brown
Phone: +44 161 440 0854
Mobile: +44 79866 34646
E-mail: Michael.Brown@GulfPub.com
SALES OFFICESOTHER AREAS
AUSTRALIAPerth
Brian Arnold
Phone: +61 (8) 9332-9839
Fax: +61 (8) 9313-6442
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CHINAHong Kong
Iris Yuen
Phone: +86 13802701367, (China)
Phone: +852 69185500, (Hong Kong)
E-mail: Iris.Yuen@GulfPub.com
BRAZILSo Paulo
Alfred Bilyk
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Mobile: 11 85 86 52 59
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INDIA
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Fax: +91-22-2822 2803
Mobile: +91-98673 67374
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INDONESIA, MALAYSIA, SINGAPORE,
THAILAND
Peggy Thay
Publicitas Singapore Pte Ltd
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Fax: +65 6634-5231
E-mail: Singapore@GulfPub.com
JAPANTokyo
Yoshinori Ikeda
Pacific Business Inc.
Phone: +81 (3) 3661-6138
Fax: +81 (3) 3661-6139
E-mail: Japan@GulfPub.com
KOREA
Young-Seoh Chinn
JES Media, Inc.
Phone: +82 (2) 481-3411/3
Fax: +82 (2) 481-3414
E-mail: Korea@GulfPub.com
PAKISTANKarachi
S. E. Ahmed
Intermedia Communications
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Water
Management
LORAINE A. HUCHLER, CONTRIBUTING EDITOR
Huchler@martechsystems.com
98JANUARY 2014|HydrocarbonProcessing.com
Best practices for RO operations
Widespread use of reverse osmosis (RO) technology in
industrial applications began in the late 1980s, following the
introduction of polyamide materials that had a significantly
higher permeate flow and salt rejection than calcium acetate
technology. Since then, spiral-wound RO membranes have in-
creasingly replaced ion exchange for water purification in in-
dustrial applications, especially for boiler feedwater.
Drought conditions and rising demand for fresh water will
increase the usage of RO to purify water from lower-quality
sources. Implementing best practices will maximize the effi-
ciency and quality of product water from RO units, as well as re-
duce operating costs (chemicals and replacement membranes),
the rate of fouling and the frequency of offline cleaning.
Monitoring. Plant operators track key operating parameters
and will conduct an offline cleaning procedure when either
the quality or the quantity of the permeate declines. These key
operating parameterspressure drop (differential), permeate
flowrate and salt passageare strongly temperature depen-
dent. Measuring the changes in these key operating parameters
requires using a complex algorithm to normalize (adjust) the
measurements to a common temperature.
Best practice for monitoring. Collect these key parame-
ters and temperatures with online analyzers and use a software
package to calculate and track the normalization parameters.
Clean the RO when any of these three normalized parameters
changes by more than 10%.
Pretreatment capability. RO membranes remove dissolved
contaminants from water. The presence of any insoluble or
suspended solids in the feedwater will cause fouling of the
membrane surface and increase the frequency of cleaning.
Proper pretreatment will optimize the cleaning frequency to
once every three months or less. An empirical measurement of
small-diameter suspended solids commonly referred to as the
silt density index (SDI) is the correct parameter to predict the
fouling by a specific water source at the inlet to the RO unit.
Best practice for SDI at the inlet to the RO unit. The
SDI of the inlet water for reliable operation are: SDI < 3
No chemical treatment required; 3 < SDI < 5Anti-scalant
chemicals required; SDI >5Additional pretreatment such as
clarification, media or membrane filtration and sodium zeolite
softeners, upstream of the RO unit is required.
Turndown of feed flowrate. Operators sometimes assume
that the presence of a variable-speed drive on the feed pump
means that they can operate the unit at variable flowrates. RO
units are co-flow, rather than cross-flowthe direction of
water flow is parallel to the membrane surface. Consequent-
ly, operation at flowrates significantly lower than the design
rate will dramatically increase fouling rate of the membrane
surface. The best option is to install a permeate storage tank
with a dead band sized to accommodate the normal variability
of treated water demand. The other option is to temporarily
idle one or more skids to make a step-change in the permeate
production rate. Best practice for turndown of feed flowrate is a
maximum of 10%.
Idling. Operators idle membranes based on short- or long-
term changes in permeate demand. Idled RO membranes are
very vulnerable to bacteria growth, especially if the feedwater
is from a surface source such as a river or lake. Failure to prop-
erly idle RO membranes will result in microbiological fouling,
reducing the permeate quality and quantity, and increasing the
offline cleaning frequency. Sequence idling is the recommended
practice to accommodate the normal variability of permeate
demand in an industrial application. Lay-up idling is the rec-
ommended practice for seasonal changes, turnaround or more
permanent reduction in permeate demand.
Best practice for sequence idling. Surface waters have a
maximum idle time of four hours. Well water has a maximum
of one week idle time (unless there is bacterial contamination
in the well). In both cases, flush the membrane with permeate
prior to returning the RO skid to service after the idling period.
Consider periodically feeding the biocide, DBNPA (2,2-dibro-
mo-3-nitrilo propionamide), during service to control micro-
biological growth.
Best practice for lay-up idling. Conduct an offline clean-
ing procedure, followed by a flush with a preservative such
as sodium bisulfite immediately prior to idling. Alternatively,
substitute the biocide, such as DBNPA, during the flush if the
membranes require robust microbiological control.
Best practices yield benefits. RO has become the standard
technology for purifying water for industrial applications, es-
pecially for boiler makeup. Implementing best practices for RO
units will reduce the risk of off-spec permeate and potential
damage or failure to downstream steam generators.
LORAINE A. HUCHLER is president of MarTech
Systems, Inc., a consulting firm that provides technical
advisory services to manage risk and optimize energy-
and water-related systems including steam, cooling
and wastewater in refineries and petrochemical plants.
She holds a BS degree in chemical engineering, along
with professional engineering licenses in New Jersey
and Maryland, and is a certified management
consultant.
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