Utility System Optimisation for LNG & GTL

By Suzanne Ferguson, Business Solutions Group, Foster Wheeler

1. Abstract
Liquefied Natural Gas (LNG) liquefaction and Gas-to-Liquids (GTL) conversion are both
energy intensive processes with significant scope for utility system design optimisation.
Appropriate selection of compressor driver types, methods of power generation,
heating/cooling media and other utility considerations is critical to achieving world-class
facility efficiencies whilst also considering the balance of additional capital cost.
Foster Wheeler has developed flexible and detailed mass and energy balance models for
the integration of utility systems for a number of applications. One of these models has been
applied specifically for GTL plants and includes raw water, cooling water, steam,
condensate, power and fuel systems. This model can be adapted to suit any GTL plant
utility configuration and location for optimal selection of compressor drivers, steam header
pressure levels, water re-use, fuel, heating and cooling.
The desire to reduce greenhouse gas emissions has provided an impetus for utility system
integration in liquefaction facilities. This paper outlines the characteristics of the GTL
models, discusses the characteristics of LNG liquefaction utility systems and outlines the
development of Foster Wheelers LNG liquefaction utility models.

2. Introduction

Foster Wheelers Business Solutions Group is a consultancy group specialising in the very
high-value-added input to clients at the concept and pre-FEED stages, and providing
specialist support into subsequent stages of project development. Experience has shown
that it is essential to determine the most appropriate utility strategy in the early phases of the
project as this will impact the layout, site selection and other factors affecting the viability of
the project. It is therefore necessary to have a tool that can quickly and accurately balance
the plant utilities and undertake techno-economic evaluations of a number of alternative
options.
The selection of utility system solutions can be challenging. Appropriate systems for one
type of plant, or location, may be entirely inappropriate for another. Plant location will affect
the ambient conditions, availability of raw water, local grid connections, energy security and
local planning constraints. The type of plant will determine the fuel, power, heating, cooling,
water and other utility needs as well as availability of internally generated water, fuel gas and
high-, medium- and low-grade heat for direct integration or steam and power generation. It

is therefore essential to have a good understanding of the plant type and location when
selecting or optimising utility systems.

This paper is divided into two main parts. The first part of the paper describes the purpose
and characteristics of the Foster Wheeler Integrated GTL Utility model. The second part of
the paper goes on to demonstrate how Foster Wheelers experience in developing the GTL
model, and others like it, has led to the development of a similar model tailored to the LNG
liquefaction process.
Each section begins with an overview and block flow diagram of the process in question.
The major plant utilities are described along with their major integration options and
synergies. The model development and configuration for each process is then discussed.

3. Gas-to-Liquids (GTL) Utilities Model

3.1 Outline GTL Process

An outline block flow diagram of a typical GTL process is shown in

Figure 1. The feedstock to the process can be any gas that is rich in methane (natural gas,
coal seam gas, etc.). The methane-rich gas is first reformed, in the presence of steam and
air or oxygen, to produce a synthesis gas (syngas), primarily composed of hydrogen and
carbon monoxide. The reforming unit requires energy for preheating and then cooling of the
syngas product, resulting in the availability of a significant quantity of high-grade heat which
can be used for high pressure (HP) steam generation.
In the Fischer-Tropsch (F-T) synthesis unit the syngas is catalytically converted to longchain hydrocarbons and water in a highly exothermic processes, this heat is suitable for use
in medium pressure (MP) steam generation. Purged, unconverted syngas creates a facility
fuel gas stream. Reaction water from the F-T synthesis creates a large source of raw water.
The F-T-produced hydrocarbon liquid products are then processed in the product work-up
unit where end products, typically LPG, naphtha, diesel and kerosene, are produced by a
combination of fractionation, hydrocracking and hydrotreating. The hydrogen required by
this unit and the syngas generation unit is supplied from a hydrogen production unit (HPU).
The HPU may also be a reformer-based process and uses methane-rich gas as its feed and
results in heat available for recovery and integration. The oxygen required by the syngas
generation unit is produced in an air separation unit, which is highly energy intensive(1).

Figure 1: Outline block diagram for a GTL Plant

The GTL process requires a high level of utility integration in order to make good use of
available heat, water and fuel gases produced in the process.
The effluent treatment system is extensive and is designed to process and recover the
reaction water as well as other effluents generated by the plant. Treated water is used to
supply boiler feed water (BFW) to the utilities systems as well as other process water
requirements of the GTL plant.

3.2 Integrated GTL Utility Model Development

Foster Wheeler has undertaken close to 200 GTL studies over the last ten years. These
studies usually require the development of integrated utility systems specific to the particular
plant and location. Many of the projects associated with these studies have faced interesting
constraints, such as feed gas quantity (thereby requiring maximum utilisation of fuel and tail
gas within the plant), water scarcity (requiring the plant to produce all of its own water as
well as supply water for local irrigation) and greenhouse gas emissions minimisation.
Foster Wheeler has developed flexible and detailed mass and energy balance models for
the integration and integration of utility systems for a number of varied applications. Over
the course of the GTL studies these generic models have been adapted to form a proprietary
model, made up of Foster Wheeler-developed Excel worksheet calculations, for individual
utility equipment design and overall mass and energy balancing that have been collated and
integrated together. The purpose of this model is to facilitate overall utility system design,
assess a number of possible design scenarios, and optimise the integration of the system on
both an efficiency and a cost basis.

3.3 Integrated Utility Model Configuration

The model is controlled from a front sheet which allows the user to determine the design
case being operated, run the utility balances individually or all converge the balances all
together to arrive at an overall solution.
An inputs sheet is used in order to supply project specific basis of design and ambient
condition data to be fed into the model.
The model then incorporates a utility demand/production balance for each process unit for a
given scenario, calculates the cumulative demand and supply of each utility individually and
then calculates make-up and or let-down flows required to achieve an overall balance.
Results are viewed in the form of utility block flow diagrams such as that shown in the
snapshot in Figure 2.

Figure 2: Snapshot of the GTL Utility Model Output (HP Steam System summary)
The individual utility system design calculations include turbine performance correlations,
extensive flash and enthalpy calculations and a wealth of experience based factors for the
performance of individual utility sections.
The following section describes the supply, demand and balance of the main utility
components.
3.4 Major Utility Model Balances
3.4.1 Fuel Gas Balance
The supply side of the fuel gas system balance is made up of tail gas produced in the
process units and methane-rich feed gas to the plant. The demand side of the fuel gas
balance is the fuel required by process unit fired heaters and the utility steam boilers. Where
the demand exceeds the supply, fuel gas is generally made up from the methane rich feed
gas to the process.

3.4.2 HP, MP & LP Steam

Large quantities of steam are generated as well as used in the process units. Steam is
generated in the syngas generation, hydrogen production and F-T synthesis units. The
syngas generation unit and hydrogen unit also require steam for their process chemistry.
Steam is also used to generate power and to drive steam turbine drivers. If steam demand
exceeds that which can be supplied from within the process units it is made up using fuel
gas-fired steam boilers, or let down from the pressure level above, if there is a surplus of
higher pressure steam.
3.4.3 Condensate & BFW
Each process unit which uses steam has a flash drum which feeds into the LP steam
balance and the total condensate balance. Condensate is also produced by each of the
steam turbine mechanical drivers and steam turbine electrical generators and from the GTL
process itself.
Condensate is treated and deaerated to produce the BFW required by the various steam
raising locations on the plant. The enthalpy balance across the deaerator is a key
component in the convergence of the overall model.
3.4.4 Electrical Power
The steam balances determine how much electrical power can be generated by steam
turbines and hence if additional steam should be raised using fuel gas-fired boilers. Any
shortfall in power generation capacity can usually be made up from a local grid connection.
Back-up power is usually supplied by a diesel generator.
3.4.5 Cooling Media
The cooling requirements of the process are calculated by the individual unit mass and
energy balances while additional cooling for the utility systems is calculated by the utility
system model itself.
Most cooling duty requirements of the GTL facility are met using fresh water cooled using
cooling towers: however, air cooled condensers are frequently used for the steam turbines
and large process compressors such as the ASU compressor, recycle compressors and
refrigeration compressor(3). The utility model allows either method of cooling to be used for
each cooling duty.
3.4.6 Process Water
The GTL plant reaction water is calculated by the process mass balance. This water is
treated and used to supply the boiler feed water make-up needs of the steam systems in the
process units as well as the process water requirements of the plant.
3.4.7 Air and Nitrogen
An ASU is included in the GTL facility with the primary function of supplying the oxygen
requirements of the syngas generation unit. This ASU is also used to supply all of the
necessary plant instrument air and nitrogen requirements of the GTL facility. The utility
requirements of this unit are also built into the overall model.

3.5 Overall Balance Convergence

The section above describes the balances for individual utility systems and begins to show
how closely they are inter-related. The process heat and material balance defines a number
of water, steam and cooling requirements which provide several fixed values for that
particular design case. There are then a number of flexible ways of utilising excesses, or
generating utilities to make up a deficit, such as using additional feed gas to raise additional
steam in gas fired boilers, or letting down excess steam through steam turbine generators to
generate power for export. These calculations are made using macros to develop an
optimised overall system design based on user specified constraints.

3.6 Benefits of the Integrated Utility System Model

The integrated utility model has been refined over its use on a huge number and variety of
GTL projects. Personnel trained in and familiar with its use are able to efficiently modify it to
new GTL project applications enabling a wide number of options to be considered quickly
and efficiency. Once modified to the specifics of the project scenario the operator is able to
run a number of design cases, and sensitivity cases, and balance the complete utility system
design to achieve optimum use of fuel sources, heat sources and water sources in order to
minimise the external utility demand of the system, maximise total plant availability or
minimise greenhouse gas emissions, depending on whatever goal is most important to the
particular project.
The model can also be linked to a reference cost model to quickly assess the trade-off
between increasing efficiency and increasing capital cost of equipment. Since the model
can be used to run a number of sensitivity cases, the optimum balance of efficiency and
economics can be determined rigorously for each specific application.

4. Liquefied Natural Gas Liquefaction Utility System

4.1 Outline LNG Liquefaction Process

An outline block flow diagram of a typical LNG facility is shown in Figure 3. Natural gas
feedstock is fed at high pressure from upstream gas fields via trunk lines to the inlet
separation facility, which removes slugs of liquid condensate from the feed gas. The gas is
then treated to remove acid gases (hydrogen sulphide, mercaptans and carbon dioxide),
water and mercury.
NGL extraction, typically integrated into the main liquefaction process, is used to remove
heavier hydrocarbons and aromatics to meet both LNG product specification and prevent
freeze out in the cryogenic heat exchanger.
The NGLs are fractionated to recover ethane, propane and butane. Ethane is normally reinjected into the gas stream to be liquefied while the propane and butane can either be reinjected of exported as LPG products. The pentanes and heavier are typically exported as
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condensate product(2). The gas is cooled in the cryogenic section to approximately -160C
and is completely liquefied and can be stored in atmospheric tanks ready for export by ship.

Figure 3: Outline block diagram for a typical LNG liquefaction plant

The LNG liquefaction process requires a number of key utilities, including fuel gas to
generate power, cooling medium and heating medium.
Unlike the typical GTL plant the LNG liquefaction plant does not produce a significant
quantity of reaction water, nor does it generate a great deal of high- and medium-grade heat.
The process instead requires a significant quantity of power and hence fuel gas, derived
from the process streams.

4.2 LNG Liquefaction Plant Utility Requirements

LNG liquefaction plant utility requirements are characterised by high demand for power to
drive the main liquefaction unit refrigerant compressors, significant electrical power demand
and a large cooling duty. Other utility requirements include fuel gas (for power generation)
and heating medium for acid gas removal, dehydration molecular sieve regeneration and
condensate stabilisation and NGL fractionation duties.
4.2.1 Refrigeration Compressor Drivers
Historically, the power requirement for the refrigeration compressor drivers was met using
steam turbine (ST) drives supplied by steam raised in boilers. This method was employed
for the first LNG plants, with one of the most recent installations using this system in Abu
Dhabi in 1994.
For the most part, refrigeration compressors are now driven using simple-cycle heavy duty
industrial gas turbine (GT) direct drives which provide higher efficiency at lower cost when
compared to steam turbines. These drives result in a significant quantity of high grade
waste heat which could be utilised for either heating the heating medium and/or for raising
steam for power generation. The Tangguh LNG plant, for example employs two Frame 7 GT
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drivers, with waste heat recovery steam generation on both, for cogeneration of heat and
power via steam turbine generators(4).
Completely electrically driven refrigeration compressors are now also considered, which
generally provide similar overall efficiency to the use of GT drives with HRSGs and STs, but
give the additional benefit of higher availability. So far only the Snhvit plant in Norway
utilises all electric drives(5).
4.2.2 Electrical Power
In many liquefaction facilities electrical power is generated using gas turbines in an open
cycle. Some, higher efficiency plants, such as Tangguh, mentioned above, have instead
installed heat recovery steam generators (HRSGs) on the main refrigeration compressor GT
drives and use the steam generated there to supply STs for electrical power generation.
The use of a combined-cycle power island (a number of gas turbines, each with an HRSG
supplying multi-pressure level steam to steam turbine generators) to supply both power and
heat can also be considered.
4.2.3 Fuel Gas
Fuel gas is required primarily for the gas turbine drives on the main refrigerant compressors
and for electrical power generation. This fuel gas is supplied from the end flash gas system
(at the back end of the liquefaction process where nitrogen is rejected from the LNG product
resulting in a nitrogen rich fuel gas stream), boil-off gas collected from the LNG storage and
loading facilities, with the deficit made up from the plant feed gas.
If fuel gas use is minimised through employing a highly efficient power system throughout
the plant then less of the plant feed gas will be required as fuel and hence the overall
production becomes more efficient, and results in a lower carbon footprint.
4.2.4 Cooling Medium
There are two main possible cooling media which can be used to reject the heat generated
in the LNG liquefaction process; these are air cooling and sea water cooling. Other options
would include more complex systems such as a sea water cooled, fresh water cooling
system or a cooling tower cooled, fresh water cooling system.
Air cooling has the benefit of lower capital cost and greater availability relative to sea water
cooled systems. In many locations the ambient air is generally available at a very similar
temperature to the close-to-shore sea water, so similar cooling temperatures are achievable.
This means that even for individual equipment items with a very large cooling duty, such as
steam turbine condensers, the improved approach temperature achievable with water does
not usually outweigh the additional cost of the water system.
For some specific sites, however, sea water cooling is a good option. Such plants include
Snhvit, where there is very deep, cold water immediately off-shore of the plant, and Oman,
where ocean currents ensure that the water temperature is significantly lower than the
prevailing air temperature for enough of the year for water cooling to become the more cost
effective option. Water systems can also result in a number of environmental issues, such
as very high flow rates of warm water discharged to the environment and chlorine
contamination of the coastal area close to the facility, they also add to plant processing
complexity.

In general, previous Foster Wheeler experience has shown that the majority of sites need
not consider water cooling as an option unless the easily accessible sea water is at least
5C cooler than the ambient air.
4.2.5 Heating Medium
The largest heating medium duties are for heating of regeneration gas for the molecular
sieve dehydration beds and for solvent regeneration in the acid gas removal unit. Other
uses include condensate stabilisation, monoethylene glycol (MEG) recovery and
fractionation. This heat is can be supplied by a hot water circuit, hot oil or steam.
The choice between hot oil and hot water can be difficult. The hot oil system introduces
additional hydrocarbons to the site but it runs at low pressure, resulting in lower capital
costs. However, this is partly countered by the lower heat capacity of the oils, compared to
water, resulting in higher flow rates, so physically larger equipment items and pipework. The
need for make-up to the oil system is minimal, however, the oil is itself a specialised
consumable, and is not available in all locations.
With the oil system there is some additional risk of fire due to a leak, particularly where the
oil is above its flashpoint as it would be in the waste heat recovery unit and the supply part of
the system. The large amount of excess oxygen in the gas turbine exhaust combined with
the high flue gas temperatures are of particular concern, and would warrant special
attention.
The use of a hot water system eliminates the problems of oil availability, additional fire
hazard and low heat capacity, however, to prevent steam forming in the system, the whole
loop must be pressurised, including the expansion vessel. Typical design pressures can be
as high as 65 bar (abs).
Similar temperatures can be achieved with significantly lower pressures and flow rates by
using a steam system. A steam system is also more flexible for heat integration within the
plant, however, a steam system is more complex than either the hot water or hot oil system
and requires significantly more equipment items such as boiler feed water chemical dosing,
deaeration and condensate collection and polishing as well as blowdown and demineralised
water make-up. Often the cost of additional equipment for the steam system therefore
outweighs the cost benefits of reduced pipework and exchanger sizing, unless steam is
already in use on the site for another purpose, such as power generation.
The shape of the LNG liquefaction plant overall utility balance can also be significantly
changed by the quantity of hydrogen sulphide (H2S) contained in the feed gas. If the feed
gas is high in H2S then it will not be possible to vent the acid gas stream to atmosphere and
a sulphur recovery unit (SRU) will be required. An SRU generates a significant quantity of
high grade waste heat, best recovered as HP or MP steam, thereby driving selection of
steam for process heating on the plant, and/or for power generation.

4.3 Integrated Utility Model Development for LNG Liquefaction

Foster Wheeler has completed a large number of LNG liquefaction projects at various stages
of development; from feasibility right though to construction and commissioning. These
projects have seen a wide variety of design constraints and ambient conditions from
locations as warm as North West Australia to freezing Melkya, in the Arctic Circle.
This range and depth of experience enables Foster Wheeler to design LNG liquefaction
utility systems to similar degree of integration and optimisation as those used extensively for
GTL plants. Foster Wheeler has already used a full utility system model for assessing a
range of scenarios concentrating on maximum plant efficiency and minimum greenhouse
gas emissions.

4.3.1

Initial Foster Wheeler Model Structure

The initial Foster Wheeler utility model used a combination of a typical overall heat and
material balance for the LNG liquefaction plant, main refrigeration compressor driver
performance data, detailed gas turbine, HRSG and steam turbine models for power
generation simulation and Foster Wheeler experience factors for total cooling, heat and
power requirement of each process unit.
This model therefore calculates the quantity of fuel gas available from the process and
allows a range of power generation and heat integration options to be considered including,
but not limited to:

refrigeration compressor drivers as GTs with helper motors or as electric motor

drives;
electrical power generation by simple cycle GTs, by STs (steam generated by adding
HRSGs to the compressor driver GTs), by simple cycle GTs with one GT in
combined cycle, or entirely by CCGT (combined-cycle GTs, HRSGs and STs);
process heat provided by steam generated in a waste heat boiler on a compressor
driver GT or HRSGs used for power generation steam supply.

The model includes calculation of total cooling loads, including the cooling load requirements
of the various power generation and refrigeration driver cases (such as steam turbine
condenser cooling loads).
The performance output of the model is in the form of an overall thermal efficiency
calculation (higher heating value of products over higher heating value of feed gas) and
overall carbon footprint (tonnes of carbon dioxide emitted per tonne of LNG produced).
The model includes capital cost estimates enabling the economic trade-off between
additional capital costs and reduced feed costs to be quantitatively assessed(6).

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4.4 Further Development of the Foster Wheeler LNG Utility Model

The next logical development step for the existing Foster Wheeler LNG liquefaction utility
model has already been undertaken. This was to use the learning and experience gained
with the Foster Wheeler integrated GTL utility model to create a similar model specific to
LNG liquefaction plants.
This firstly involved moving all of the key calculations into a single model format where
possible or, for essential external programs, to be run via a single spreadsheet as
appropriate.
Secondly, the facility to easily modify the design case, ambient conditions and project basis
of design specifications was added. This included the incorporation of heat and material
balancing capabilities so that different feed gas composition cases and operating cases can
be run.
Once the model had been integrated and given the flexibility to be adapted to any specific
project condition and constraint the output summary format was developed so that the
results of each run can be clearly recorded.
A further development step then links the utility balance to indicative capital and operating
costs for each case based upon generic or user specific cost data for the region and market
particular to the study.

Figure 4: Snapshot of the LNG Utility Model Output

At the time of writing; the fully integrated Foster Wheeler LNG utility model has been
constructed, beginning with a study case for heat recovery from GT drivers with steam
generation at a single pressure level. Enthalpy balances for boiler feed water deaeration are
already included and running robustly. The total system performance results have been
validated against specialist modelling software, such as GEs GatecycleTM and against
performance curves published in the literature, such as those featured in Gas Turbine World.

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5. Conclusions

Foster Wheeler has developed and refined a detailed, integrated utility system modelling and
design tool for GTL plants. This model facilitates utility system optimisation for a range of
different design cases and is adaptable to any GTL project. Possible optimisation targets
include might be minimising plant feed gas use, zero utility over-the-fence import, maximum
water export or minimum greenhouse gas emissions.
Foster Wheeler has also developed an initial LNG utility model which has been used to show
the overall impact and benefits of a range of power and heat integration options including
capital and operating cost estimating. This LNG utility model has then been developed
further to be adaptable to a wide range of scenarios, be fully flexible and incorporate all
design and performance calculations into a single model which can be modified, run and
converged in one.
Foster Wheeler can draw upon its experience of developing optimal utility solutions and tools
for GTL and LNG liquefaction plants to develop robust and effective models and tools for any
type of gas monetisation plant.

6. References

1)
2)
3)

4)
5)
6)

Oryx GTL from Conception to Reality, Kevin Halstead, Foster Wheeler,

Nitrogen+Syngas 292, March 2008.
LNG Technology Selection, Dr Tariq Shukri, Foster Wheeler, Hydrocarbon
Engineering, February, 2004.
Integrated GTL and Gas Plants, Opportunities and Challenges, Peter Alderton, Foster
Wheeler, Presented at the SMi Gas-to-Liquids 2007 Conference, London, October
2007.
Tangguh LNG: Energy Efficient Production, Fawaz Bitar, Peter Nuttall & Refrizal
Boestaman, BP Berau, Ltd, Presented at at LNG 16, Algeria, April 2010.
Electrical Motors Look Attractive for Angola LNG, Steve Shu & Francis Christiano,
ChevronTexaco & Malcolm Harrison, Foster Wheeler, Oil & Gas Journal, October 2002.
Carbon Capture Options of LNG Liquefaction, Michael Coulson, Suzanne Ferguson &
Tim Bullen, Foster Wheeler, Presented at LNG 16, Algeria, April 2010.

Foster Wheeler 2011. All rights reserved.

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