January 2017

Magnolia LNG
The next U.S. Gulf Coast Project
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 ISSN 1747-1826

CONTENTS JANUARY 2017

03 Comment 31 Make it fit

Dr Pl G. Bergan and Dr Daejun Chang, LATTICE Technology, Norway and
South Korea, present a new, flexible LNG pressure vessel that is capable of
05 LNG news being designed to fit a range of spaces.

35 Development history of the gas

10 A new era for Australian LNG engine
Bernadette Cullinane, Deloitte, Australia, reflects on a challenging Ren Sejer Laursen, MAN Diesel & Turbo, Denmark, looks at the development
2016 for the LNG industry and looks ahead to a record year for of dual-fuel engine technology.
LNG in Australia.
39 Small scale LNG loading solutions
Tom Toth, Connect LNG AS, presents a floating transfer system.

43 Storage in severe conditions

Julien Castres Saint Martin, VINCI Construction Grands Projets, France, and
Patrick Genoud, Entrepose Contracting, France, look at the safe delivery of
large LNG storage tanks in severe conditions, from Western Australia to
Northern Siberia.

47 Easing the stress

Wasim Younis, Symetri, UK, presents the benefits of adopting analysis early on
in the design stage within the LNG industry.

51 Automation for productivity and

10 forecast accuracy
Christian Sommerhoff, IWB, Germany, outlines automation considerations for
LNG distribution to trucks.

15 Monetising flare gas 56 15 facts ... on Australia

Franoise Sabatier and Helmut Steinacker, Linde Engineering Division,
Linde AG, Germany, introduce a BOG reliquefaction plant developed
for Petronas LNG complex in Bintulu, Sarawak, Malaysia.

19 Back to basics
David Blanchard, Cryostar, France, explains how current market
conditions present an opportunity for small scale LNG.
ON THIS MONTHS C
COVER
23 Bigger is not always
ways better
Warren R. Miller and Fei Chen, Air Products
roducts and Chemicals Inc., USA,
explain why smaller plant capacitiess can sometimes equate to bigger
opportunities. 3D model rendition of the
planned LNG Limited 8 million tpy
26 A brighter future
re for LNG as ((or
or greater) project in La
Lake Charles,
L
Lou isiana, US. Currently s
Louisiana, shovel ready
a marine fuel having regulatory certaint
certainty (FERC
Martin Wold, DNV GL, Norway, outliness why interest in LNG
as a ship fuel is set to increase. and DOE approvals), cost ccertainty
(LSTK EPC signed with KBR KBR-led KSJV,
O&M contract with EthosEn
EthosEnergy),
industry-leading operational efficiency
with our patented OSMR liqu liquefaction
technology, and equity financing
nancin from
Stonepeak Infrastructure Partners.
Partne ASX:
LNG & OTC ADR: LNGLY.

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 JOSEPH GREEN
EDITOR

COMMENT or many, 2016 will go down as one of the worst years

F in history. After a quick glance at the news, its hard

to disagree. Political turmoil, economic uncertainty
and a spate of celebrity deaths have dominated the
headlines over the last twelve months. Nevertheless, as we
limp, black-and-blue, into 2017, hope remains for a brighter
approximately 70% of east coast natural gas demand
by 2018. The reality of the situation is that the three
new plants will likely draw the majority of the natural
gas that would otherwise have been available to the
year ahead.
domestic market. A massive exploration and production
After a year fraught with challenges, Australian LNG
effort is required to boost output by enough to meet
also remains optimistic for a record year in 2017. A crucial
the demand of the LNG plants,2 otherwise Australia can
year for Oz, the country is set to become the worlds largest
expect to see a shortage sometime around 2019. AGL is
LNG exporter as multiple construction projects reach their
considering its options in light of these predictions.
conclusion. As production increases in tune with global
In this months issue, we feature a fascinating
supply, Australia will continue to face obstacles however, as
Regional Report from Deloittes Bernadette Cullinane,
it looks to cement its status as the leading figure in LNG
who investigates the LNG industry at large and looks
export; namely, weak demand and the subsequent oversupply
ahead to a crucial year for LNG in Australia. If you have
of the global market, coupled with forecasted price declines.
picked up a copy of LNG Industry at this years Australian
A hot topic towards the end of last year, the Australian
Oil & Gas Exhibition, be sure to let us know your
LNG market has generated much speculation. The majority
thoughts on one of the years most intriguing markets.
of 2017 forecasts have painted a mixed picture, whilst some
The New Year is often a time for resolution and
have ventured the once inconceivable. Recent reports have
change. That is the same for me as I take on the
suggested that despite the enormous spend on the push to
role of Editor at LNG Industry. I would like to thank
export gas, Australia may in fact be on the brink of importing
Callum OReilly for his continued words of wisdom and
it. Energy supplier AGL has announced that it may need to
guidance and we wish him well in his new role as Editor
spend up to AUS$300 million on an LNG import depot to
of our sister publication, Hydrocarbon Engineering.
shield itself from soaring gas prices and increasing difficulty
Moving forward, LNG Industry remains committed to
in finding local supplies. 1 There is method in the madness.
bringing you the highest quality technical articles and
Although no deal is yet in place, there is a strong possibility
thought-provoking pieces reflecting on the industry
that the cheaper solution for AGL will be to import gas from
worldwide. This will no doubt be a pivotal year for LNG,
any number of low-cost producers around the world, rather
and we will endeavour to cover every angle of what is
than utilise its reserves at home.
hopefully a brighter 2017.
Whilst it seems an extraordinary move, AGL is reacting to
economic realities. As reports discuss, the building of three 1. http://www.abc.net.au/news/2016-11-24/having-spent-
new LNG plants in Queensland state ... has dramatically 200b-to-export-lng-is-australia-about-to-import/8055164
altered the supply-demand balance along the eastern 2. http://uk.reuters.com/article/column-russell-lng-australia-
seaboard. According to AGL, the three plants will account for idUKL4N1DM1XQ

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 LNGNEWS
Malaysia
First LNG produced from
PFLNG SATU
etronas has announced that the first LNG has been
P produced from its floating LNG (FLNG) facility,
PFLNG SATU.
The operational milestone marks a decade long journey
for Petronas since conceptualising a FLNG facility to
maximise the potential of remote and stranded gas reserves.
PFLNG SATU, which operates at water depths between 70 m
and 200 m, has a processing capacity of 1.2 million tpy.
Petronas Acting Vice President LNG Assets, Development
& Production, Adnan Zainal Abidin said: At 365 m long and
with 22 modular systems, PFLNG SATU is an engineering
marvel that brings together the liquefaction, production,
storage and offloading processes of LNG to the offshore gas
field. We have successfully stretched the limits of our abilities
with floating LNG technology to maintain our technical edge
as a key LNG supplier.
On 14 November 2016, PFLNG SATU reached its final
stages of commissioning and start-up with the introduction
of gas from the KAKG-A central processing platform at the
Kanowit gas field. Petronas expects its FLNG facility to lift its
first cargo and achieve commercial operations in the 1Q17.
Canada
Bear Paw receives EA approval for natural gas pipeline
NG Limited has announced that its indirect wholly owned
L subsidiary, Bear Paw Pipeline Corp. Inc., has received
environmental assessment (EA) approval from Nova Scotia
Environment for its natural gas pipeline.
Bear Paw is proposing to build and operate a
pipeline that will stretch 62.5 km from Goldboro to the
proposed Bear Head LNG export facility in Point Tupper,
Richmond County, Nova Scotia, Canada. The Goldboro to
Point Tupper pipeline connects Bear Head LNG to the
North American natural gas pipeline network. LNG Limited
claims that expenditures for the construction of the pipeline
will only commence following the financial close of the
Bear Head LNG project.
Greg Vesey, The Managing Director and CEO of
LNG Limited, said: The environmental assessment approval
The Netherlands
Gate Terminal celebrates
opening new LNG facilities
longside shareholders Gasunie and Vopak, and partners
A Shell and the Port of Rotterdam, Gate Terminal has
celebrated the expansion of the LNG terminal at the
Maasvlakte in Rotterdam, the Netherlands.
The terminal now features a third berth, as well as new
infrastructure for loading small LNG vessels. These vessels
will enable distribution to LNG terminals in other North Sea
and Baltic ports where LNG tankers are prohibited from
delivering because of their draught. In conjunction with LNG
bunker vessels, the third berth will also make it easier for
ocean-going vessels to be loaded with LNG in Rotterdam.
To celebrate the occasion, 400 guests were invited to
a networking event, which included a mini-symposium in
which several experts shared experiences and developments
regarding the use of LNG as marine fuel.
Allard Castelein, CEO, Port of Rotterdam Authority, said:
The Port of Rotterdam Authority highly values a more
sustainable transport sector. As a result of cooperation with
many parties we lead the way in this transition, Rotterdam is
the LNG hub of Europe. A new facility as the third berth is a
good example of what you can achieve together.
is an important regulatory component that furthers our
goal to be the leader in helping Nova Scotia realise
the LNG opportunity that will benefit the province and
community.
Bear Paws pipeline is integral to the development of
Bear Head LNG. We are putting all the elements in place
to develop a successful LNG export facility on Cape Breton
Island and the pipeline is a strategic and critical element.
Bear Head LNGs focus is to provide access to overseas
markets for North Americas natural gas resources on
competitive economics.
Bear Head LNG is uniquely positioned to provide
liquefaction services to Western Canadian, Northeast US, and
offshore Nova Scotia resource owners desiring to sell natural
gas to the global LNG market.
January 2017 5
 LNGNEWS
Lithuania
Skangas signs LNG reload
agreement with Statoil
kangas has announced that it has signed an agreement with
S Norways Statoil for a small scale LNG reload operation at the
Klaipeda LNG terminal in Lithuania.
At the time of writing, the reload was set to take place in early
January 2017, becoming the first reload carried out at the terminal,
and marking the first time that Skangas has sourced LNG from
Statoil.
Skangas sees this latest agreement as the next step towards
increasing support for the development of the small scale market
in Northern Europe.
Tor Morten Osmundsen, the CEO of Skangas, said: We see this
latest agreement as a confirmation of the two companies common
interest to promote LNG in order to continuously develop the
small scale LNG market.
Both companies have already concluded other agreements as
part of their business relationship. These include feed gas to the
Skangas LNG plant in Risavika, Norway, as well as a bunker supply
agreement to the platform supply vessels delivered from several
bases in Norway, including possible ship-to-ship (STS) transfer.
News Highlights
X US to become net energy
exporter
X Indian government ofcials seek zero
import tax on LNG
X Asia is the biggest US LNG buyer
Visit our website for more news: www.lngindustry.com
6 January 2017
South Korea
GTT technology to be
used on vessel ordered by
Gaslog
aztransport & Technigaz (GTT) has announced
G that its Mark V technology will be used to equip a
new LNG carrier ordered by Gaslog. The vessel will be
constructed at Samsung Heavy Industries (SHI) shipyard
in Geoje Island, South Korea, with delivery scheduled for
2019.
The Chairman and CEO of GTT, Philippe Berterottire,
said: Gaslogs choice of our new membrane containment
system highlights the confidence of our partners in our
innovations.
We are constantly striving to enhance the
performances of our systems. This first order of Mark V
shows our ability to meet market requirements.
Mark V technology reduces the guaranteed daily
boil-off rate of LNG to 0.07% of the tank volume
per day. It also optimises the dynamic insulation
resistance.
 France
LNGNEWS
Dunkirk regasification
terminal starts commercial
operations
DF has announced that commercial operations have started
E up at the Dunkirk regasification terminal in France.
The terminal is the second largest in mainland Europe, and
is the only one that is directly connected to two consumption
markets (France and Belgium). It has a regasification capacity
of 13 billion m3/yr, which accounts for over 20% of French and
Belgian natural gas consumption.
The terminal is composed of a jetty, three 200 000 m3
isothermal LNG storage tanks, and a regasification unit. The
jetty is capable of receiving up to 150 tankers per year, from
low-capacity tankers (65 000 m3) to the largest LNG tankers
in the world (Q-Max tankers with a capacity of 267 000 m3).
Five articulated arms are installed to unload the ships at a
maximum flowrate of 14 000 m3/hr. The regasification unit
consists of 10 heat exchangers, supplied with tepid water by
the neighbouring nuclear power plant in Gravelines with an
underwater 5 km tunnel.
The Executive Director of the EDF Group, in charge of
the Gas Sector and Italy, Marc Benayoun, said: I am delighted
that commercial operations have started up at the Dunkirk
regasification terminal, thus creating a new point of gas
importation in France and strengthening security of supply in
Europe. It also contributes to the development of the gas supply
market, on which the Group already operates with its Italian
subsidiary, Edison, and wishes to further strengthen its share. I
would especially like to thank the EDF, partners and contractors
teams who have worked together since 2012 to complete this
strategic asset.
23 - 25 January 2017 14 - 16 February 2017
European Gas Conference 2017 CWC Iran LNG & Gas
Vienna, Austria Partnerships Summit
www.europeangas-conference.com Frankfurt, Germany
www.iranlngandgas.com
13 - 14 February 2017 22 - 24 February 2017
Floating LNG Australasian Oil & Gas (AOG)
London, UK Perth, Australia
www.floating-lng.co.uk www.aogexpo.com.au
8 January 2017
Turkey
Inauguration of the first
floating LNG import
terminal in Turkey
n 23 December, ENGIE and the Turkish construction
O companies Kolin and Kalyon inaugurated the ETKI LNG
terminal.
The inauguration ceremony was held in the presence of
President Recep Tayyip Erdogan, Prime Minister Binali Yildirim and
Minister of Energy Berat Albayrak.
ENGIE was selected by project developers Kolin and Kalyon
to deliver this fast-track floating storage and regasification unit
(FSRU) based solution. The group committed the Neptune, one of
the two FSRUs of its fleet, to the project.
The 145 000 m3 capacity vessel will act as an LNG receiving
and storage facility and will deliver natural gas in gaseous form.
The overall infrastructure developed by Kolin and Kalyon includes
a jetty and an onshore gas pipeline to connect the terminal to
the national gas transport grid, operated by BOTAS. From final
investment decision (FID) to completion, record breaking terminal
project development took only 6.5 months.
The Neptune vessel arrived at ETKI LNG terminal berth on
11 December fully loaded with LNG and proceeded immediately
with commissioning operations.
The rationale of the FRSU-based solution chosen by Kolin
and Kalyon lays in its flexibility, cost-effectiveness and speed of
implementation. With a capacity of up to 20 million m3/d of gas
send-out, the new ETKI LNG Terminal will be a key contributor
to Turkeys natural gas security of supply, especially in the winter
period. It will complement Turkeys two existing onshore LNG
terminals, thus enhancing the countrys diversification of gas
import structures as well as supply sources.
23 - 24 February 2017
LNG Summit United States
Houston, US
www.lng-usa.com
04 - 07 April 2017
Gastech
Chiba, Tokyo, Japan
www.gastechevent.com
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 A new era for
Australian LNG
Bernadette Cullinane, Deloitte,
Australia, reflects on a challenging
2016 for the LNG industry and
looks ahead to a record year for
LNG in Australia.

10
 ith the rapid growth in global LNG trade, and the final phases of multiple

W Australian LNG construction projects drawing to a close in 2017, Australia is on

track to become the worlds largest LNG exporter. Seven LNG projects are all set
to add in excess of 60 million tpy capacity, effectively doubling total gas production and
tripling Australias gas export capacity.
LNG will overtake coal as Australias second biggest export earner by 2018 and
become a critical growth driver for the countrys economy. According to modelling by
the Reserve Bank of Australia (RBA), LNG exports will add approximately 0.75 of a
percentage point to GDP within 18 months, that is one-fifth of the 3.5% growth that
the Treasury predicts will occur in that year.1 After years of planning and an often
fraught capital intensive construction phase, LNG in Australia is now entering an
exciting new era.
This article reflects on the trends that emerged in 2016 and provides some
thoughts about the future.

11
 Global LNG supply increasing
massively
Most of the new LNG supply expected in the next five years
will come from Australia and the US. After several years
of limited growth in new liquefaction capacity driven by a
lapse in final investment decisions (FIDs) for new greenfield
projects, as well as delays faced by those projects under
construction, there is a huge amount of new supply entering
the LNG market. Approximately 135 million tpy of new LNG
capacity is currently being built, 74% of this in two countries
Australia and the US. Along with the US first LNG exports
from trains at Sabine Pass, more than 40 million tpy of that
volume was set to be commissioned by the end of 2016,
across Australia, Malaysia, and Angola.
Australian production is ramping
up
It has been a long time in the planning and construction,
but Australias LNG mega-projects are finally entering
the all-important production phase. Kicked off by the
Queensland Curtis LNG project at the start of 2015, the
second half of the year saw the project reach full production
from both trains. Subsequently, there were first exports
from Santos Gladstone LNG (GLNG) project in October 2015,
Origin Energys Australia Pacific LNG (APLNG) in January 2016,
and Gorgon LNG in March 2016.
However, other projects are limping to the finish line
as project delays remain a big supply theme. The LNG
industry has long struggled to deliver new projects on
schedule. Fatigued by productivity challenges and cost
overruns, the last of the LNG projects under construction
are struggling to get over the finish line.
Despite these challenges, Australia is on track to have
10 operating LNG projects by 2019 2020. This massive
ramp up in capacity translates to over 84 million tpy in
export capacity by 2019 2020, above Qatar and
positioning Australia as the worlds number one LNG
exporter. As a result of this ramp up, Australia will
experience a huge exports boost.
The haves and the have nots
With so many major LNG export projects coming online
simultaneously, ensuring there are sufficient feedstock
gas reserves is critically important. A rapid increase in gas
production can be expected over the next few years, to
support Australias burgeoning LNG industry.
LNG is an industry where access to low cost reserves
and the security of long-term contracted sales volumes
makes all the difference. Those LNG project operators with
access to low cost gas and/or already signed contracts will
enjoy a competitive advantage as they can profitably
navigate the current market and build growth until prices
recover by 2020. Operators without a ready supply of low
cost feedstock gas and/or without the security of
long-term gas supply contracts look vulnerable.
Global market to remain
oversupplied
Based on forecast LNG supply from existing projects and
those under construction, together with weak LNG demand
forecasts, Macquarie estimates excess supply in the global
12 January 2017
market will peak at approximately 70 million tpy in 2019
before returning to balance by 2023.2
Seven years is a long time for a dynamic, rapidly
evolving market like LNG to be in oversupply mode.
Disruptive forces will abound and there may be more
examples of LNG buyers breaking long-term supply
contracts. As LNG markets mature and become more
sophisticated, more flexibility will be built into supply
contracts. If the supply overhang persists, there is also
likely to be a curtailment of existing, uncontracted
capacity. Those LNG projects with high ongoing CAPEX
commitments and low operating breakeven are most at
risk of getting shelved.
More choices for buyers
With the US shipping its first LNG cargoes in February 2016
and on track to potentially export 60 million tpy of LNG by
2020, representing approximately 20% of global supply, Asian
buyers have much greater supply options than in the past. As
a result, the balance of power in contract negotiations has
shifted with buyers more able to dictate terms. Australian
LNG producers are expected to face lower prices when they
renegotiate long-term deals with Asian utilities, with new
sources of supply, including US exports, giving buyers an
advantage in contract talks. Asian buyers are also delaying
signing new long-term supply contracts, mindful of the
growing supply volumes in the global market.
Subdued near-term outlook for
LNG pricing
Operators of LNG projects without the security of locked-in
long-term (20 years) offtake should look away now. LNG
prices (using landed Japan as the benchmark) are forecast to
decline over the outlook period due to the lower oil prices,
a deterioration in the global gas supply/demand balance
and the shift towards spot-based contracts. Greater supply
options and a more liquid, transparent spot market will give
gas buyers more power in contract negotiations. With finance
options limited, it is a tough environment for early stage LNG
projects to get off the ground.
Despite the uncertain near-term demand outlook and a
weak gas pricing backdrop, global LNG supply keeps
increasing. Investment bank Morgan Stanley estimates
global LNG supply growing at a 9% CAGR over the period
2015 2020.3 That equates to over 140 million tpy of new
liquefaction capacity scheduled to come online during the
next five years. Presenting at LNG18 in Perth, Australia, in
April 2016, Wood Mackenzie talked of 30 LNG trains to be
added by 2020.4 That is an LNG train every eight weeks
and represents a 50% increase in LNG supply in just
five years. Much of this increased capacity will come from
Australia and the US. Supply competition is increasing and
the next decade will see more low-cost supply options.
Proposed Australian LNG projects
Several of the less advanced Australian projects under
proposal have been discussed for years. All of these projects
have their own complex issues (project partners, politics,
market, resources, etc.) and have been beset by delays,
controversies and challenges. It is unlikely that any new LNG
projects will be sanctioned in the current climate.
Australian LNG projects at the
top of the cost curve
The economics of new LNG projects look even less attractive
in light of Australias high cost base and labour issues.
Being an expensive place to do business is a particularly
big problem for capital intensive infrastructure projects in a
challenging commodity pricing cycle. According to JP Morgans
cost estimates, the majority of Australian LNG projects occupy
the upper end of the cost curve.5 Project owners are guiding
mid to single-digit returns at current oil prices. Consensus
amongst industry analysts is new LNG projects need to return
an over 10% internal rate of return (IRR) at under US$60/boe
to have any chance of being commissioned.
The market is slowly but surely
switching to spot trades
Goldman Sachs noted in 2016 that spot purchases in
recent years have been cheaper than cargoes bought under
long-term deals.6 Spot trades were forecast to cost 31% less
than contract purchases in 2016. This is an alarming trend
for Australian LNG producers as long-term contracts roll off.
Certainly, the days of a few large players exerting oligopoly
style pricing power are well and truly over.
The next few years promises to see the share of
uncontracted LNG volumes increase further with
aggregators/traders playing a bigger role to clear the market.
What is more, thanks to greatly reduced LNG pricing, margins
are much thinner in the industry, reducing opportunity for
profitable inter-basin trade (i.e. trade between Pacific and
Atlantic basins).
There is also likely to be an emergence of spot trading
exchanges, such as the newly announced GLX LNG cargo
trading platform.
An uncertain future for FLNG
Described as a true breakthrough technology a few years ago,
the current assessment of the floating LNG (FLNG) technology
is uncertain. Questions are being asked about whether FLNG
technology will live up to its hype after the decision by
Woodsides Browse gas venture to freeze work was followed
by the axing of a floating design for the Abadi gas field in
Indonesia. Other Australian FLNG ventures have been sensitive
to cost and price issues. It remains to be seen whether FLNG
will be the way forward for new projects, or an option with
limitations as well as advantages.
Looking forward to 2017
While 2016 was certainly a year filled with challenges, the
positives will outweigh the negatives in the long run, and 2017
is set to be a record year for LNG in Australia.
References
1. CASSIDY, N. and KOSEV, M., Australia and the Global LNG
Market, Reserve Bank of Australia (RBA), (2015), http://www.
rba.gov.au/publications/bulletin/2015/mar/pdf/bu-0315-4.pdf.
2. MEYER, J., LNGs hammer blow to thermal coal, The Sydney
Morning Herald, (24 February 2016), http://www.smh.com.au/
business/energy/lngs-hammer-blow-to-thermal-coal-20160223-
gn1cod.html
3. Morgan Stanley analyst note, Shipping and LNG Market
Outlook, (4 May 2016).
4. The rise of the LNG portfolio player, Wood Mackenzie,
(20 April 2016), https://www.woodmac.com/analysis/video-the-
rise-of-the-LNG-portfolio-player
5. JP Morgan analyst note, Global LNG, (1 October 2015).
6. PATON, J., LNG Golden Promise Fading for Goldman on Wave
of Oversupply, Bloomberg, (5 November 2015), https://www.
bloomberg.com/news/articles/2015-11-05/goldman-says-lng-
buyers-may-break-term-contracts-for-spot-deals
 Monetising flare

Franoise
Sabatier
and Helmut
Steinacker, Linde
gas
Engineering
Division, Linde
AG, Germany,
introduce a BOG
reliquefaction
plant developed
for Petronas
LNG complex in
Bintulu, Sarawak,
Malaysia.

t the end of 2012,

A Malaysia LNG Sdn Bhd

(MLNG), a subsidiary of Malaysian
oil and gas company Petronas, placed an
engineering, procurement, construction and
commissioning (EPCC) contract with Linde Engineering for
the worlds largest boil-off gas (BOG) reliquefaction plant, adding up to
a maximum 0.8 million tpy of LNG capacity to the existing Bintulu LNG
complex.
The Petronas LNG complex in Bintulu, Sarawak, comprises three LNG
plants owned and operated by Petronas joint venture (JV) companies.
With a total of nine production trains and a combined capacity of more

15
 than 24 million tpy, the complex is one of the worlds
largest LNG production facilities.
Since the first LNG cargo was delivered to Japan in
1983, Petronas has held long-term contracts with
customers in mainly Japan, South Korea and Taiwan,
supplying a significant share of their domestic natural gas
needs.
How flare gases are monetised
The BOG reliquefaction plant helps to improve the overall
LNG plant complex efficiency and minimises gas flaring.
The target is to reliquefy excessive BOG evaporating out of
the LNG storage tanks, which was flared before.
Instead of being flared, BOG is now reliquefied,
converted into LNG and routed back to the LNG storage
tanks. The project benefits are immense since it will not
only increase the LNG production rate and improve plant
efficiency, but also significantly minimise greenhouse gas
(GHG) emissions.
Innovative concept
Large LNG export terminals include an LNG tank farm with
large LNG tanks providing significant storage capacity.
Low pressure gases at tank pressure (approximately
100 200 mbarg) originate from several sources, such as
the following:
Figure 1. Lindes BOG reliquefaction process.
Figure 2. Turbocompressor cross sectional drawing (left) and variable inlet guide vane (IGV) unit
(right).
16 January 2017
z BOG caused by heat ingress through the tank walls and
LNG pumps.
z Flash gas generated in the run-down line between
liquefaction and storage.
z Ship return gas/displacement gas during ship loading.
z Flash gas during cool-down of warm send-out systems.
In total, the overall low pressure gas (hereinafter
called BOG) flowrate may accumulate to approximately
1000 tpd for a 10 million tpy LNG facility (this figure can
be scaled almost linearly for larger plant capacities). The
quality of the BOG may raise concerns as it will be
enriched with nitrogen and may contain contaminants
from ship return gases. The distance between the
liquefaction trains and the LNG storage may add up to a
few kilometres depending on the site conditions. Thus,
returning the BOG to the liquefaction trains and merging
it with the end-flash gas may not be the optimum solution
for every site.
Based on the detailed feasibility study and the front
end engineering and design (FEED) contract awarded by
MLNG to Linde, Linde Engineering and MLNG have
developed an innovative concept for a world scale BOG
reliquefaction unit with up to 0.8 million tpy capacity,
which includes the following features:
z BOG compression starting from cryogenic conditions.
z Mixed refrigerant (MR) cycle with only two heat
exchanger bundles.
z Load balancing between feed gas and refrigerant cycle
compressors.
z Nitrogen rejection into the gas turbine fuel gas with a
double flash process.
z Use of identical gas turbines as mechanical drive.
Technical solution
The BOG reliquefaction unit with a capacity between
0.3 million tpy and 0.8 million tpy of LNG can be
compared with mid scale LNG plants. All land-based LNG
plants in this capacity range use a single mixed refrigerant
(SMR) cycle. This choice is based on its efficiency (typically
350 kWh/t), minimum
count of rotating
equipment, and
good safety records.
Considerations to use
nitrogen expander
cycles for floating
LNG (FLNG) concepts
are not applicable
for a land-based BOG
reliquefaction facility,
mostly as compact
design and readily
available make-up
supply are not likewise
important.
Even if there is
some discussion about
the use of brazed aluminium plate-fin heat exchangers could be used. The operating pressure of D1 can be
(PFHEs) for SMR-based mid scale LNG plants, coil-wound selected such that the fuel gas can be compressed in a
heat exchangers (CWHEs) are often preferred in this single-casing, single-stage compressor C3, which can be
service, especially as load changes during ship loading will operated optionally at ambient temperature suction
cause extra stress to the heat exchangers. Evidence conditions, as the elevated suction pressure allows for a
suggests that CWHEs are more tolerant to frequent load warm-up of the fuel gas before it is compressed.
cycles than PFHEs. The additional cost that comes with In total, the value engineering exercise helped to
CWHEs is offset by the reduced downtime caused by heat eliminate the subcooling bundle E3 and the low
exchanger repair. temperature, low pressure casing of the fuel gas
BOG reliquefaction requires large compression systems compressor C3. The stripper column T was replaced by two
for the refrigeration cycle and also for BOG compression, simple flash drums D1 and D2.
as liquefaction under low pressure would be very Load balancing between BOG compressor C1 and
inefficient. A typical SMR process with a specific energy LNG MR compressor C2 permits the utilisation of identical
consumption of 350 kWh/t requires approximately 15 MW mechanical drive gas turbines.
for a feed gas flowrate of 1000 tpd under a pressure of at
least 50 bar. Feed gas compression starting from tank BOG compression system
pressure to at least 50 bar requires almost the same Among all turbocompressor applications, the cryogenic
power. For compressor trains with more than 10 MW each, BOG compressor service is one of the most demanding
gas turbines have been selected as the driver in the past, applications. Due to the nature of the BOG service,
if fuel gas is available under economically attractive the compressor trains are periodically exposed to
conditions. Using electric motors instead of gas turbines large fluctuations regarding volume flow and suction
seems to be preferable only if and when electric power temperatures. The proprietary Siemens design features
can be sourced reliably at low prices. (Figure 2) include a variable inlet guide vane (IGV) control
(blue) in front of the impeller (red), protected dry gas
Process arrangement seals (green) in a heated and cooled seal carrier (yellow),
World scale BOG reliquefaction units have not been built
so far. Therefore, a proven process topology has not been
available for a cost-effective and robust process design.
However, the BOG plant was developed based on Lindes
StarLNGTM concept, as well as proven mid scale LNG
reference plants.
The chosen SMR cycle is the LIMUM process, which
has been developed and patented by Linde Engineering. It
is built around a single-casing, barrel type compressor C2
with two compression stages.
Figure 1 shows the selected design for the BOG
reliquefaction system. BOG from the LNG storage tanks has
to be compressed first. The low molecular weight of the
BOG and the high pressure ratio require two compressor
casings for the single shaft, centrifugal compressor C1. In
the absence of a need for sour gas removal and
dehydration, the compressed BOG is sent directly to the
Figure 3. BOG reliquefaction plant in Bintulu, Malaysia.
cryogenic heat exchanger, which consists of a precooling
bundle E1 and a liquefaction bundle E2. In most of the
cases, the nitrogen content of BOG will exceed the
standard specification for LNG (under 1 mol%) so that
nitrogen rejection is required.
The mixed refrigerant cycle (MRC) compressor C2 is
unloaded by shifting part of its duty to the BOG
compressor C1. This can be achieved by replacing the
subcooling refrigeration duty of the MRC, which was used
in E3, by an open methane cycle. Instead of subcooling
LNG to such a low temperature that only the desired fuel
gas stream is generated, a larger methane-rich flash gas
rate is deliberately accepted, which is recycled to the
suction side of the BOG compressor C1. Thus, an excellent
match between the shaft power of C1 and C2 could be
achieved.
Lindes value engineering revealed that instead of
Figure 4. Siemens cycle compressor at BOG reliquefaction
conventional nitrogen stripping with a column, a medium plant in Bintulu.
pressure flash drum D1 and a low pressure flash drum D2

January 2017 17

Figure 5. Siemens SGT-700 gas turbine at BOG reliquefaction plant in Bintulu.
Figure 6. BOG reliquefaction plant in Bintulu.
extensive expertise in material selection, compressor design,
manufacturing and testing.
The Siemens SGT-700 gas turbine burns natural gas with
up to 40% N2 (nitrogen) content, while still minimising
atmospheric emissions through the use of a dry low
emissions (DLE) combustion system.
Main cryogenic heat exchanger
The heart of the cryogenic section is the CWHE, which
is 44 m high, weighs 154 t, and is mounted into a steel
structure on site.
Construction and commissioning
challenges
In the more than 6 million man-hours invested in the entire
construction and start-up phases of the project, there was
not a single lost time incident (LTI). However, a number of
challenges were encountered throughout the project.
The construction phase proved to be the most
challenging project phase. Access was restricted on land by
18 January 2017
the existing complex
infrastructure. As a result, a
special jetty had to be
purpose-built for the
delivery of the CWHE, the
gas turbines, the
compressors and the flare
elements. It was also
challenging to work inside
the LNG complex alongside
operational facilities.
Day-to-day production was
the top priority and so the
plant operators were
closely involved in the
construction and
commissioning phase.
Due to some
inopportune circumstances,
Linde Engineering had to
switch from a modular
approach for the air cooler
modules to a stick-built
system without any
preassembly off site.
Coincidentally, the construction of the CWHE structure
was optimised by dividing the structure into seven modules
that could be assembled more easily on site. Working
simultaneously on these multiple modules sped up
construction significantly. The situation on the construction
site was also exacerbated by the fact that important parts
were considerably delayed.
However, with the help of MLNG, Linde managed to
control the adverse impact of such construction challenges
and was able to move into an effective commissioning phase,
where Linde and the client acted as one team. Unfortunately,
the start of production was delayed by unexpected problems
with a compressor. However, once these problems had been
resolved, the team was able to carry out the performance
test run to the customers full satisfaction.
Conclusions
Despite the challenging working environment in an
operating LNG plant complex, world scale BOG reliquefaction
(and hence the monetisation of flare gas) has become a
reality in Bintulu.
Together with MLNG, Linde Engineering has successfully
developed and built a new plant type for the LNG industry.
Siemens significantly contributed with innovative compressor
and gas turbine designs, which are proven in service and are
respected worldwide.
MLNG has accompanied this first of its kind project from
the very beginning of the concept phase until final
acceptance. The client team has supported the design phase
of the plant at Linde Engineerings office. On site, an
integrated commissioning team of MLNG operation and
Linde Engineering personnel has successfully started-up the
plant and brought it up to a stable, easy controllable and
profitable operation.
The BOG reliquefaction plant based on this novel concept
has been operating successfully since the end of 2015.
 Back
to
basics

David Blanchard,
Cryostar, France,
he world faces

T unpredictable changes
with falling energy
prices. Onshore and offshore
explains how
current market
conditions present an
LNG projects approved several
years ago in a more favourable opportunity for small
pricing environment are now scale LNG.
coming online, and many new
investment decisions for major plants have been postponed
or cancelled. With global LNG trade reaching 247 million t
in 2016 (an increase of 5 million t over 2015), anticipated
growth in global liquefaction capacity of 46% in five years
with the construction of large plants (mainly in the US
and Australia), and an anticipated increase of natural gas
consumption of 2% per year, questions have been raised

19
 regarding the financial opportunity for further investment.
At the same time, these mega-plant projects have faced
considerable capital cost escalation since 2000, with price
per ton almost doubling, reaching more than US$1100/t
for greenfield projects, and the price of LNG halving in
12 months.
With the current global economic situation, as well as
COP21 considerations to find solutions to limit global
warming, the benefits of small scale LNG plants are
becoming clear. Small scale plants were not considered
economical for such a long time that there is no clear
definition of the liquefaction capacities ranges
corresponding to small scale and the transition to
mid scale. In its World LNG Report, the International Gas
Union (IGU) defines small scale liquefaction facilities as
plants with a capacity of less than 1 million tpy and
estimates a cumulated production capacity towards
20 million tpy of LNG, or 5% of the global conventional
LNG production.1
Cryostar developed small scale liquefaction units
several years ago, beginning in 2005 with an extensive
programme culminating in the EcoRel process. The process
was selected for installation on the Qatar Gas Transport
Co.s LNG carriers for boil-off gas (BOG) reliquefaction to
retain all cargo for delivery. At 266 000 m3 cargo capacity,
Figure 1. StarLiteLNG unit for onshore application from
20 to 200 tpd (Copyright Cryostar).
Figure 2. StarLiteLNG winterisation concept for severe
ambient design conditions (Copyright Cryostar).
20 January 2017
these Q-Max vessels are the largest LNG vessels ever built.
Based on this experience with onboard units, Cryostar now
offers small scale LNG or liquefied biogas (LBG) plants for
onshore natural gas or biomethane liquefaction
applications through its StarLiteLNG family product. With
capacity from 20 to 200 tpd, as per Figure 1, this capacity
could be defined as mini LNG inside the small scale LNG
family.
Standardisation
The first lesson learned from the current large scale plant
cost escalation issue, is that standardisation of the products
at small scale allows for improved cost control. With this
in mind, the StarLiteLNG family was developed with
five sizes to allow the liquefaction model to best suit the
application: XS (28 tpd), S (50 tpd), M (88 tpd), L (125 tpd)
and XL (200 tpd). The product was further developed to be
suitable for harsh weather with a winterisation concept
design for Siberian or Canadian conditions, as per Figure 2.
Flexible
However, standardisation does not necessarily mean a
narrow range of inlet conditions to implement the product.
Success requires a flexible, standardised product.
The smaller sizes target the biogas market, with
biomethane liquefaction possible at low operating
pressure, or for customers with limited LNG needs. These
sizes also apply for remote locations that are not covered
by the pipeline grid. An XS capacity plant can be used to
liquefy biomethane from waste generated by cities with a
population of approximately 1 million people. Alternatively,
it can be implemented in wastewater treatment plants, the
food industry to reuse waste, or even as a suitable solution
for BOG management or zero send out periods for storage
tanks in an LNG import terminal. Larger capacities are
better suited to pipeline liquefaction for remote areas,
bunkering, shale gas/coal bed applications, or peak shaving
plants.
Robustness
Flexibility and robustness with regard to feed gas
composition, as well as ease of operation, are key
characteristics of the companys reverse Brayton closed
nitrogen loop liquefaction process. The liquefier is able
to operate at a reduced natural gas flow by adjusting the
nitrogen pressure at the inlet of the first compression
stage.
The control system monitors the temperature of the
LNG produced and raises the pressure to increase the cold
production, or reduces it to decrease the plant capacity. To
reduce nitrogen inventory losses during small pressure
adjustments inside the refrigeration loop, nitrogen can be
moved to and from a nitrogen inventory control tank. In
addition, the nitrogen refrigerant remains in gas phase
throughout the complete loop, allowing a fast restart after
shutdown. Almost all small scale plants up to now (below
200 tpd) are built using a nitrogen refrigeration medium as
it is easy to source. The technology remains accessible to
non-expert operators, due to a high level of automation,
making operation simple.


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 The plant is designed around a single turbomachine in
the refrigerant cycle named a compander (Figures 3 and 4).
The compander is a combined turboexpander and
compressor in a single, integrally-geared machine. Three
compression stages and one expansion stage are mounted
on a common speed increasing gearbox driven by an
electric motor. The mechanical power generated by the
expander is recovered and reduces the drive motor
electrical consumption. The compander is oil lubricated
with the skid, including lubrication support systems, such
as oil pumps, filters, demisters, control valves, heaters and
coolers to ensure recirculation and precise oil
conditioning. The compander requires only nitrogen gas
for sealing the high speed shafts of the expander and
compressor stages between the pressurised nitrogen loop
and the atmospheric gearbox casing. This also helps to
avoid freezing of the expander bearings after the machine
has stopped.
Modular
A modular concept has been applied to StarLiteLNG
using offsite module pre-fabrication in cost-efficient
workshops in selected countries to avoid high cost labour
environments. The same approach is applied to the gas
treatment, liquefaction, storage and transfer/loading
equipment, with a focus on skid-mounted units.
Figure 3. Compander with water cooling system
(Copyright Cryostar).
Figure 4. Compander and electric motor, medium voltage
requirement (Copyright Cryostar).
22 January 2017
Scalable
Modularisation is also synonymous with scalability, where
the use of multiple units in parallel allows the customer
to scale projects according to market conditions and
the evolution of delivery contracts. There is also less
operational risk compared to a single-train facility, where
maintenance and failure may cause a complete stoppage
of all LNG production.
While several module units may be less efficient than
a single unit, staggered investment could be a more
economic business model in the long-term. It is harder and
riskier to secure financing for a single unit. It can also be
difficult to sign enough long-term offtakers to start the
project with confidence.
Conclusion
To conclude, a modular concept together with a
pre-engineered solution allows shorter delivery time,
providing the operator with an opportunity to generate
revenue faster for stakeholders. This situation is clearly
emphasised today by sudden and significant energy
price fluctuations, which changes the thinking for future
investments.
Despite facing a low LNG price and market
uncertainties with oversupply due to new large scale
plants and shale supplies, Cryostar remains confident of
future opportunities for small scale units with local
natural gas production. Small scale LNG projects have
the capacity to allow LNG supplies to penetrate
undeveloped markets. Sulfur Emission Control Areas
(SECAs) or Emission Control Areas (ECAs), in which
stricter controls were established to minimise airborne
emissions, will promote the use of LNG for newly-built
ships and will help the development of some local,
small scale LNG businesses. Similar developments are on
track for road transportation and inland navigation in
Europe, combining stricter regulations (Euro VI and
potentially future Euro VII) and funding to develop LNG
infrastructure through the Connecting Europe Facility
(CEF) programme and energy projects for the
2014 2020 period. Investors and private companies
have already received European grants for infrastructure
development, such as the LNG Blue Corridor road
transportation project, LNG bunkering in the Baltic Sea
and Rhine-Danube corridor plan for inland navigation.
Consequently, the move towards a carbon-neutral
economy is gaining momentum, and the demand for
small scale LNG and the related infrastructure required is
expected to increase in the future. Cryostar faces all of
these challenges with equipment available for the LNG
sector, including turbines, compressors, cryogenic pumps
for LNG transfer or high pressure pumps for new
dual-fuel ship engines, LNG/LCNG dispensers, automatic
filling stations, LNG/LCNG refuelling stations, gas heaters
and vaporisers, on board regasification units and small
scale liquefaction units.
Reference
1. 2016 World LNG Report, International Gas Union (IGU),
(April 2016).
BIGGER
Warren R. Miller and Fei Chen, Air Products
and Chemicals Inc., USA, explain why smaller
plant capacities can sometimes equate to bigger
opportunities.

maller scale LNG projects are a growing trend in the LNG industry.

S In the past, most LNG plants possessed similar attributes all were
land-based and most were designed to enjoy economy of scale by
employing the largest equipment that was proven at the time. These factors
are no longer the sole consideration, as evidenced by a number of developing
projects. It is a fact that most large, easily accessible gas fields are already
being produced. Many of the new gas finds are smaller, offshore or more
remote. Additionally, energy price volatility has made traditional, large volume,
long-term contracts increasingly difficult to secure. Finally, niche requirements
for transportation fuel and energy peak shaving require smaller volumes,
which fluctuate in their demand. As a result, the challenges of justifying the
financial viability of new projects have increased, and the market is looking for
innovative solutions to meet these requirements.

23
 Consequently, there is a renewed focus on
small (0.03 million tpy to 0.5 million tpy) and mid scale
(0.5 million tpy to 2.5 million tpy) plants as a way to
monetise stranded reserves and meet these new market
demands. As smaller plants do not benefit from the same
economies of scale as larger plants, many project
developers focus on reducing capital.1 In addition, they are
also focusing on execution strategies that facilitate shorter
project schedules, accelerating time to on-stream and
monetisation of stranded gas. However, in order to be
economically viable, a small/mid scale LNG plant must
minimise downtime, maintenance intervals and lost
production, just like a large plant.
Simple nitrogen expander cycle
Where low capital investment becomes much more
important than a high efficiency process, simple nitrogen
expander cycles are sometimes considered for smaller
plants because they are perceived to be easier to operate
(Figure 1). The natural gas is simply cooled and condensed
against a single component fluid, which can be easily
compressed and upon expansion reaches a temperature
that is colder than the liquefaction temperature of
Figure 1. N2 recycle process.
Figure 2. Three-stage N2 expander LNG process.
24 January 2017
the natural gas feed. This is the basis of the simplest
liquefaction process.
Quick turndown of a simple nitrogen expander cycle is
easily achievable. The nitrogen refrigerant is nonflammable
and environmentally friendly. The use of nitrogen also
eliminates the need to store hydrocarbon refrigerants, as
required by mixed refrigerant (MR) systems. Most nitrogen
expander LNG trains operating today are less than
0.1 million tpy, used in peak shaving or interruptible
service, and usually consist of one compressor, one
compressor loaded expander (compander), and one cold
box with a maximum of two brazed aluminium heat
exchanger (BAHX) cores. In addition, the nitrogen expander
cycle can be highly modularised to minimise field
construction cost.
To make up for inefficiencies of a simple nitrogen
expander cycle and the limited size of proven equipment,
more expander refrigeration is required. To produce more
LNG, duplicate parallel companders and BAHX cold boxes
can be used. However, increasing the amount of rotating
equipment can result in a more complicated plant, which is
less reliable and more difficult to operate. Additionally, the
BAHX cores must handle the thermal stresses inherent with
liquefying the multi-component natural gas. Nevertheless,
a small nitrogen expander cycle system may be suitable for
small requirements, or where low capital is the main goal
rather than efficiency.2
As an alternative to the small nitrogen cycle, Figure 2
shows a nitrogen expander cycle that utilises three levels of
expanders in a process with efficiency comparable to the
single mixed refrigerant (SMR) process. It uses commercially
available companders to produce 0.5 million tpy to
1.0 million tpy of LNG. This more efficient nitrogen expander
cycle will reduce footprint and the amount of equipment
over multiple parallel trains.
SMR process
For larger capacity requirements, the SMR LNG process is
well suited (Figure 3). SMR processes are more efficient
than simple nitrogen expander cycles, require fewer
rotating equipment items and are well proven in the
mid scale range. The refrigerant consists of a mixture of
hydrocarbons and nitrogen optimised to match the natural
gas cooling curve as closely as practically achievable.
SMR processes are still less efficient than precooled
mixed refrigerant (PCMR) cycles, limiting the practical size
Figure 3. Single mixed refrigerant (SMR) LNG process.
of a single train before parallel equipment is required.
Nevertheless, for mid scale applications, the SMR LNG
process (Figure 3) can provide proven performance and
reliability.3 Almost all SMR LNG plants operating today are
in the under 1.0 million tpy size range. Either BAHX cores
or coil-wound heat exchangers (CWHEs) may be employed
in liquefaction plants using SMR cycles. However, CWHEs
have several advantages in this service, including superior
resistance to thermal stress, improved operability with
two-phase flow, and the ability to handle greater capacities
without having to resort to parallel units.
PCMR process
Many plants producing LNG in the range of
1.0 million tpy to 2.5 million tpy utilise the well proven
propane precooled mixed refrigerant (PCMR) process, where
MR is still used for liquefaction and subcooling in a single
CWHE, but propane is used for precooling. Over the past
30 years, precooling has become the norm for plants that
approach capacities in excess of 1 million tpy because of
its flexibility and efficiency. When a plant is designed for
continuous operation, downtime is costly and reliability
commands a premium. A mid scale LNG plant must
minimise downtime, maintenance and lost production just
like a large plant.4 The PCMR plants in service in this size
range achieve excellent efficiency with high on-stream
factors using single compressor trains. There is no need
for parallel compression trains or parallel liquefaction
heat exchangers to achieve high reliability. This process
is well suited for this size range.
dependent on specific site conditions. The underlying
justification for many projects is often the opportunity
presented by the difference between the cost of the natural
gas source and LNG price, but efficiency is important when
producing LNG from any gas resource. Poor efficiency is the
lost opportunity to produce more LNG. High efficiency can
be a significant factor that makes a project economically
attractive, and the resulting incremental capacity will
almost always justify the additional costs. Furthermore,
because the liquefier tends to be a smaller part of the
investment for a greenfield project, an LNG project
developer should carefully consider the risk of saving
capital at the expense of operability and reliability. Low
reliability translates into a higher amount of downtime,
which directly affects the revenue stream.
References
1. SOLOMON, J., Meeting Technical Challenges in a
Changing Market, The Petroleum Economist Ltd, (2010).
2. SOLOMON, J. Scaling it Down, LNG Industry,
(Spring 2012), pp. 85 88.
3. BRONFENBRENNER, J. C. and MILLER, W., On a Smaller
Scale, LNG Industry, (Winter 2008), pp. 64 70.
4. BROFENBRENNER, J. C., PILLARELLA, M. and SOLOMON,
J., Selecting a Suitable Process, LNG Industry, (Summer
2009), pp. 17 25.

Case study
The Ningxia Hanas LNG plant (Figure 4) is one of the
largest LNG facilities of its kind in China and was
engineered by Technip using Air Products AP-SMR
process. It is a mid scale LNG plant located in Yinchuan.
It has two trains with a total capacity of 800 000 tpy.
The plant is well engineered to have high efficiency
and high reliability. The feed gas is compressed to
reduce the overall liquefaction power requirement. The
MR composition is composed of components readily
available at the plant site. Electrically-driven two-stage
centrifugal machines with cost-effective fixed speed
motors are used for the MR compressor, while the
compressor speed variation is achieved using hydraulic
coupling. As fuel gas demand is low, all boil-off gas
(BOG) from the storage tanks and truck loading stations
is recycled for reliquefaction, thus avoiding wasteful
flaring.
Extensive dynamic simulations of the plant were
done during the engineering phase of the project to
verify the ability of the plant design to handle start-up
and other transient states. As an example, the models
enabled the response of the process controls to
changes in weather condition and feed gas to be
evaluated. The LNG is ultimately distributed to the
Chinese market in order to meet the growing demand
for clean energy.

Conclusion Figure 4. The Ningxia Hanas mid scale LNG plant in China utilises
In designing any facility, there are trade-offs between Air Products AP-SMRTM process.
initial CAPEX and efficiency, which are highly

January 2017 25
 A brighter future for
LNG as a marine fuel

AIDA Prima.

26
 Martin Wold, he second half of 2016

DNV GL, Norway,

outlines why interest
T has been positive
for the LNG industry,
with exciting new projects
in the cruise industry and
many other segments.
in LNG as a ship fuel is These developments give
set to increase. an indication of what is
to come, with the global
0.5% sulfur cap due to be
implemented in 2020.
The global count for LNG-fuelled
ships as per November 2016 shows 88
LNG-fuelled ships in operation and 98 on order. In
addition, there are already 70 LNG-ready ships in
operation or on order, which are designed for efficient
conversion from conventional fuels to run on LNG.

New horizons
Whereas Norway has been the focus for this industry
in previous years, the countrys share of new orders has

27

Figure 1. Total number of confirmed LNG-fuelled ship
projects.
Staying informed
With the industry growing rapidly, it has become
increasingly challenging to keep track of all the
latest developments. This led to the development of
DNV GLs LNG intelligence portal (LNGi). Launched in
March 2016, the portal brings stakeholders from across
the LNG industry together to share market intelligence
and contribute to the uptake of LNG as a ship fuel.
Leading LNG suppliers and engine manufacturers,
including Shell, the marine division of Rolls-Royce and
MAN Diesel & Turbo, were some of the first companies
to subscribe. The portal allows subscribers to assess
the availability of LNG fuel for specific trade routes and
newbuild projects. It also provides information about
current market developments, as well as status updates
of other alternative fuels and emissions reduction
technologies across every vessel segment.
This kind of information plays a significant role in
making investment decisions. The portal allows DNV GL
to pool its efforts with the industrys to generate high
quality data and increase the transparency in a market
that is set to receive multi-billion dollar investments in
the coming years. In this way, companies can innovate
together, and with much greater speed and impact than
by working alone.
dropped from 63% to 8% (November 2016). The order book
is currently dominated by ships intended for operation in the
North European and North American trade. Furthermore, even
without the necessary LNG bunkering infrastructure in place,
LNG fuel is making its way into global ship trades. Four of
the vessels currently in operation already operate globally
and 22 of the newbuilding orders are also destined for global
trade. LNG bunkering infrastructure will be expanded as
these vessels venture into new territories. These examples
show that LNG fuel has moved out of a niche and could be
considered for all newbuilds and trades.
The LNG industry expected the introduction of the
emission control area (ECA) sulfur requirement in 2015 to
trigger a wave of orders for LNG-fuelled ships. The coinciding
collapse of the oil price was naturally a disappointment to the
supplier industry that had been investing heavily in R&D and
sales activities for several years. While many have felt like the
interest in LNG-fuelled ships had reduced, DNV GL records
show that the number of newbuild orders has actually
remained steady throughout this time (Figure 1). Furthermore,
although the exponential growth that was hoped for did not
materialise, a steady stream of LNG-fuelled newbuilds,
especially in a time of low oil prices and low newbuilding
28 January 2017
activity, gives some hope for seeing higher growth rates in the
near future. The current increased interest in LNG as ship fuel
supports this claim.
LNG uptake
Looking at the uptake in different ship segments, car and
passenger ferries are still in the lead, and DNV GL believes
that this trend will continue. One reason is that the LNG
consumption and loading frequency often enables LNG
distribution and bunkering by truck. In a time when LNG
infrastructure is scarce, this flexible and low-CAPEX solution
will play an important role. Distribution by truck can also be a
cost-efficient solution in the long-term, when the amount of
required bunker is limited in a certain area.
In the LNG uptake ranking, offshore vessels come in
second place. However, with the downturn of the offshore
market, further growth is expected to be low for now. Overall,
the highest growth is expected in the tanker, car/passenger,
cruise and container segments.
Containerships are well suited to be a forerunner for
LNG fuel, with fixed routes and a high fuel consumption to
earn back the additional investment. Interest in LNG fuel has
been relatively high for containerships for quite some time,
and both dual-fuel engines and other solutions utilising
LNG fuel are currently being explored. Several major
stakeholders have recently come together to carry out phase
two of the Piston Engine Room Free Efficient Containership
(PERFECt) project. The project investigates the possibility of
using a combined gas and steam turbine system (COGAS) to
power an ultra large container vessel. It has brought together
DNV GL, Gaztransport & Technigaz (GTT), CMA CGM (and its
subsidiary CMA Ships), as well as ABB, the Caterpillar company
Solar Turbines, and OMT. In phase two of the project, the
partners will detail the technical concept and the commercial
feasibility. It will be completed by mid-2017.
The impact of LNG in the cruise
industry
LNG as an alternative fuel is picking up in the cruise
industry, with a number of vessels already taking up this
option. Currently, there are 11 cruise vessels on order that
will use LNG as ship fuel (just over 10% of the current
LNG order book). The first cruise ship to use LNG was the
AIDA Prima, which operates on LNG in port. In addition,
Royal Caribbean Cruise Lines has ordered two cruise vessels,
which will be powered by LNG and fuel cells. The ships will
be built at the Finnish yard Meyer Turku and are scheduled for
delivery in 2022 and 2024.
The recent developments in the cruise industry are
important when the possible impact of the current
newbuilding figures is considered. The recent orders of
LNG-fuelled cruise ships, for instance, will have a significant
effect on the total volume of LNG sold to ships. Large cruise
ships may easily have a fuel consumption of
30 000 50 000 tpy of LNG, depending on their operational
profile. With 11 such vessels on order, the demand for LNG
fuel will rise by approximately 300 000 500 000 tpy. By
comparison, DNV GL estimates that the consumption of the
current fleet in operation adds up to approximately
250 000 tpy. Therefore, the decisions made in the cruise
sector will have a significant impact on the whole industry.
Such bunker volumes will provide LNG suppliers with the
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 Figure 2. Model of the Piston Engine Room Free Efficient Containership (PERFECt) ship (credit: DNV GL).
confidence to invest in additional LNG bunker vessels,
which will likely be the preferred way of supplying these
ships. These bunker vessels will increase LNG availability in
certain regions, thereby benefitting LNG-fuelled vessels in
other segments and potentially leading to additional orders
for LNG-fuelled ships.
Outlook for 2020
By 2020, DNV GL expects that between 400 and 600
LNG-fuelled vessels will be in operation worldwide. It
will be interesting to see how the recent decision of the
International Maritime Organization (IMO) to implement the
global 0.5% sulfur cap from 2020 affects the LNG industry.
The price of the 0.5% fuel is expected to be somewhere
between heavy fuel oil (HFO) and marine gas oil (MGO). This
will offer an additional incentive to ship owners considering
switching to LNG, in order to achieve compliance with the
upcoming sulfur cap. Generally, DNV GL expects to see
more interest in LNG as ship fuel and a greater number of
newbuildings using LNG propulsion. The impact will be felt
the most in the deep sea ship segments. The application to
the IMO for a NOx ECA in the Baltic and North Sea (requiring
Tier III NOx compliance for ships constructed on or after
1 January 2021) received somewhat less attention after
the 70th meeting of the Marine Environment Protection
Committee (MEPC70), but this will be one additional
regulation in favour of LNG over the alternatives in this
region.
The uptake of exhaust gas cleaning technologies is also
on the rise. There are already 331 confirmed scrubber
projects (as per November 2016), and the uptake is
expected to increase further in the next few years.
Scrubbers are a feasible and financially viable solution for
existing vessels (so far, approximately 75% of the confirmed
scrubber projects have been retrofits). On the newbuilding
side, LNG is currently in the lead. Which of these options
may be the best fit for a certain vessel needs to be decided
on a case-by-case basis. Both solutions will play a
significant role in determining the global fuel mix in the
years to come. The pace at which LNG infrastructure
develops is one of the deciding factors for the success of
LNG as ship fuel.
LNG bunkering infrastructure
DNV GL believes that LNG availability for ships is better
than what the industry generally perceives, and statistics
30 January 2017
from its LNG intelligence portal (LNGi) show that LNG
bunkering infrastructure is developing rapidly. In total,
there are already 57 LNG supply locations in operation for
ships worldwide, not including the LNG bunker vessels and
LNG trucks, which can go anywhere (subject to permits).
The investment decision has been taken on an additional
36 projects, and a further 35 projects are registered as
currently being discussed. Not all project ideas are available
to the public, so the actual number is higher. In most cases,
the project initiators are trying to aggregate sufficient
demand or confidence in the market to make an investment
decision.
As for LNG-fuelled ships, the majority of LNG bunkering
projects under development are in Europe, mostly
concentrated around the ECAs. A few projects are also under
development in Asia, but many of these are for inland
waterway shipping. In North America, the pace of
development has been slower than expected, especially
when compared to Europe. The slowing effect of lack of
infrastructure developments, amongst others, should not be
underestimated.
In these early days, flexible infrastructure assets make
sense. Orders for LNG bunker vessels are picking up, and
such vessels are foreseen to play an important role for cost
efficient distribution and bunkering of LNG. Currently, there
are four LNG bunker vessels on order, including orders by
Shell, Engie/NYK/Mitsubishi, Skangas,
BominLinde/Klaipedos Nafta, and TOTE/JAX LNG. At the end
of September 2016, there were also some new
developments in terms of bunker vessel design when
DNV GL granted Vard Engineering Brevik AS an Approval in
Principle (AiP) for its new 6500 m3 bunker vessel design.
In addition, there are six bunker ship loading facilities
globally, where such vessels can load LNG. Another nine
have already been decided upon, and a further five are
currently under discussion.
Conclusion
With fuel availability and the confidence in LNG as an
economic fuel option growing steadily across different ship
segments, DNV GL sees significant growth potential for the
LNG industry. And while the sector is not expected to boom
overnight, there is a steady upwards trend in the uptake of
LNG and infrastructure projects, and the introduction of the
0.5% sulfur cap in 2020 will give LNG and other alternative
fuels an important boost.
 Make it
FIT
Dr Pl G. Bergan and Dr Daejun Chang, LATTICE
Technology, Norway and South Korea, present a
new, flexible LNG pressure vessel that is capable
of being designed to fit a range of spaces.

NG is the cleanest and most environmentally friendly fossil fuel available

L for marine propulsion. With new regulations being imposed by ports,

coastal states, and the International Maritime Organization (IMO),
international shipping is at a crossroads, where major modifications will have
to be made to existing ships, and the propulsion system of new ships will have
to be different from that of current heavy fuel oil (HFO) burning machinery. The
logical way of satisfying current and future emission regulations is to switch to
LNG as the fuel for the future. However, there are problems and challenges that
need to be addressed; new cost-efficient solutions have to be implemented

31

Figure 1. Cut view of a Lattice Pressure Vessel (LPV) with
internal lattice structure.
Figure 2. Cruise ferry.
Figure 3. Very large container carrier.
Figure 4. Small scale LNG carrier.
Figure 5. Barge-mounted power plant.
32 January 2017
for ships, and a whole new global infrastructure for LNG
fuelling will have to be developed.
LNG containment
Space is the primary money-earner on a ship, and this
applies to transport of freight or passengers. Installation of
membrane fuel tanks, or other types of atmospheric tanks,
not only requires geometric regularity of the space used
for fuel, but also extra safety barriers to protect the hull
structure against cryogenic LNG leakage. Pressurised LNG
fuel tanks do not require such barriers. However, since they
are typically cylindrical or spherical, they are extremely
inefficient in terms of the utilisation of hull space (normally,
the space efficiency of multiple cylinders is less than 40%).
A new technology for LNG pressure vessels, the
Lattice Pressure Vessel (LPV), offers a solution to this
problem. They can have almost any geometric, faceted shape,
can be scaled to any desired size, and can be designed
specifically for any realistic pressure level. The typical space
efficiency factor for LPV tanks is approximately 90 95%.
There is an internal loadbearing, modular structure within
the tank, which balances pressure on opposite walls
(Figure 1). The thickness of the outer shell does not increase
with tank size.
The vessels grid-like internal structure provides
structural redundancy, which means that if an internal
component should fail, the structural forces will be
transferred to neighbouring elements. The outer skin, which
is the critical gas barrier, is the least stressed part of the
entire structure. This is different from the load-carrying
principle of a pressurised cylinder, where the outer skin
serves as both the gas barrier and the load-carrying
structural element.
It is also worth noting that the internal structure of the
vessel provides an efficient damping of internal fluid motion.
This means that sloshing is not a problem, and that fuel or
cargo tanks may be filled to any level, without concern for
damage by dynamic fluid loads.
Insulation, BOG handling, and
fuel supply system
Using the Type C LPVs of pressurised tank type can offer
a number of advantages in terms of CAPEX, OPEX, and
operational convenience. In addition to reducing piping,
instruments, and operational complexity, one LPV has the
tank CAPEX roughly equal to two cylinders and much less
than multiple cylinders. The vessels remove the need for
complicated insulation, secondary barriers, drip tray, and hull
protection that are required against cryogenic LNG leakage,
which is inherent to Type B or membrane tanks.
During LNG bunkering operations, boil-off gas (BOG)
handling is a major challenge, while the actual LNG transfer
is rather straightforward. BOG from Type B or membrane
tanks should be returned to the ports, while it is not
necessary for the Type C LPV tanks. This reduces the time for
bunkering operation, as well as risk related to BOG handling.
This merit still holds for the normal voyage operation, where
the BOG can be held within the LPV, with no need for that
BOG to be drawn continuously to avoid pressure build-up.
These features of the LPV enable the fuel supply system to
have its simplest configuration with maximised operational
flexibility.
Reliable, Efcient, Flexible Solutions
FOR

Mid-Scale Liquefaction
THROUGH

Patented OSMR Technology

AT

Industrys Lowest Full-Cycle Cost

WITH

Regulatory Certainty
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A Geographically Diverse Portfolio

Liqueed Natural Gas Limited

Perth, Australia
Level 1, 10 Ord Street
West Perth, WA 6005
+61 8 9366 3700
Houston, Texas USA
1001 McKinney, Suite 600
Houston, Texas 77002
713 -815 - 6900
www.lnglimited.com.au
Examples
Unlike cylindrical or bi-lobe pressure vessels, the technology
does not have a fixed ratio between tank width and height.
Almost any desired box-like shape can be provided for.
Moreover, a basic box-like shape may also be modified with
skew sides, wedge-like forms, etc. The tank corners are
generally rounded, and the sides of flat tanks may be made
with fully rounded shape.
Figures 2 5 show examples of types of tanks. Figure 2
shows a flat vessel designed to fit into a flat space within a
cruise ferry, substituting for a series of cylinders. Figure 3
shows a very large container carrier with the vessel inserted
below the wheel house to save the cargo space. In Figure 4,
the vessels replace bi-lobe tanks, increasing the cargo space
by 20% for the same hull dimension. The technology can
also be installed on a deck, rendering high flexibility in
shape and volume, as shown in Figure 5.
Technology availability and
readiness
Four different test tanks have been made and have
undergone cryogenic and pressure testing with strain
measurement. The tests have confirmed full consistency
between prior analysis, measured stresses and deformations.
Loading beyond design pressure and non-linear simulations
prove that these tanks have extreme robustness against
failure. Two of the tanks have been tested with POSCOs new
high manganese steel with excellent results. Other materials
can also be used, such as stainless steel, nickel steels or
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aluminium for cryogenic temperature, and suitable steels for
other temperature regimes.
LATTICE Technology has signed license agreements with
two major tank producers. The company will also cooperate
with fuel supply and engine manufacturers to facilitate the
broadest possible use in LNG fuelling of new ships and LNG
refurbishment.
The vessel has already received Approval in Principle
(AiP) from all major classification societies, such as DNV GL,
Lloyds Register, ABS, Bureau Veritas, Korean Register (KR),
and ClassNK. It has also received the ASME U2 stamp from
ABS Consulting. This ensures that general approval for
specific ship applications will be expedient.
Conclusion
This article focuses on the availability of a new technology
that enables efficient implementation of LNG fuelling for
existing and new ships. However, broad, international scale
implementation of environmentally friendly LNG fuelling
requires major investments and efforts in construction of
a supporting infrastructure that provides LNG fuel when
and where it is needed. To this end, the flexibility of a
technology that allows for almost any size, pressure or
shape, may represent an opportunity for fast and efficient
implementation with use for gas transport, terminals, supply,
etc. Furthermore, the tanks may have wide applications
within development of LNG-based power supply, such as
with tanks for floating storage regasification units (FSRUs),
power barges, land tanks, etc.
 DEVELOPMENT
HISTORY OF THE
GAS ENGINE
Ren Sejer Laursen,
MAN Diesel & Turbo,
Denmark, looks at the
development of dual-fuel
engine technology.

n the mid-1980s, it was recognised that an LNG/natural gas fuelled diesel

I engine could become an attractive alternative prime mover for ships, especially
LNG tankers, which at that time utilised steam turbines with a rather low
efficiency.
Accordingly, in cooperation with Japanese licensee Mitsui & Co. Ltd,
MAN Diesel & Turbo decided to develop the MC-C-GI (ME-GI) engine on the
platform of the mechanically controlled MC/MC-C engine type. The first
commercial engine was built as a power plant engine at the Mitsui-Chiba shipyard
in Tokyo, Japan. This engine has since accumulated several thousand hours of gas

35
 Figure 1. L70ME-C-GI cylinder pressure trace for 25%, 50%, 75% and 100% engine load. Comparison of operation on gas oil (DI)
and natural gas (GI).
operation and formed a solid basis for the
development of todays electronically controlled
ME-C-GI engines.
However, at that time, the engine did not meet the
market conditions due to rising gas prices.
Consequently, the development of this technology was
put on hold.
The changing shipping market conditions in recent
years has meant that the marine market, especially the
LNG ship market, is ready to change to more efficient
prime movers; first the dual-fuel diesel-electric (DFDE)
technology, and lately the two-stroke diesel-engine
technology.
Moreover, the volume of natural gas on
international markets has risen rapidly, and prices
have become competitive such that the use of LNG
has become attractive for other vessel types.
Development of gas engine technology has
continued as a natural consequence of diesel engine
development, changing from mechanical control to
electronic control. The GI technology was moved from
the mechanical MC/MC-C platform to the electronically
controlled ME-C engine platform, resulting in the
ME-C-GI engine series.
36 January 2017
A high pressure supply system has been specifically
designed for this engine concept. Several established
companies worldwide, such as Burckhardt Compression,
TGE Marine, Hyundai Heavy Industries, Daewoo
Shipbuilding & Marine Engineering (DSME), Mitsubishi
Heavy Industries, and Mitsui, have designed reliable and
safe supply systems for both LNG and natural gas.
Although the high pressure system is more costly than a
low pressure supply system, the price difference is starting
to diminish, and the system is more energy efficient.
Performance results
A number of ME-GI engine types have been designed,
manufactured and tested. Generally, the performance
results of those tests were as expected. This article
presents the results from an L70ME-C-GI engine.
Figure 1 shows a comparison of cylinder pressures
obtained when running on marine gas oil (MGO) and LNG.
It can be concluded that the cylinder pressures are
essentially identical, which had been the design goal in
this case. Cylinder pressure variations over time, and also
across the cylinders, are minor for both modes and only a
question of the accuracy of injection timing, which in both
cases is satisfactory.
 Gas quality management
A strong technical feature of the engine concept is its
flexibility to operate on different gas qualities with full
engine performance and power. The engine operation
and combustion will be safe regardless of the methane
number of a given gas type.
It is known that gas qualities on LNG carriers usually
change during a voyage. The only technical challenge
for the GI engine to overcome when exposed to varying
gas qualities is that the engine control system requires
information on the energy content of the gas that is
injected. The information on gas quality may, in theory,
be provided by online gas sensors, e.g. a gas
chromatograph. However, such measuring devices are
complex and sensitive instruments that need frequent
calibration and, additionally, have a relatively slow
response time towards changes in gas quality.
Therefore, MAN Diesel & Turbo has decided not to
use gas chromatographs for future applications. Instead,
the information needed will be derived by combining
the measurements from the installed pressure mean
indicated (PMI) online cylinder-monitoring system and
signals from the engine shaft torque meter with
information on the instantaneous gas injection duration
from the engine control system. Hereby an online gas
quality assessment is made with minimum time lag that
guarantees quick feedback control to any changes in gas
composition coming to the engine.
With this system, the ME-GI engine is able to
operate on all commercially available natural gas
qualities, as well as in cases where this quality is
subject to quick changes. Table 1 lists the general gas
specification for the engine.
Modes of operation
The following description mainly focuses on LNG
carriers fitted with an ME-GI engine. On non-LNG
carriers, the decision as to whether to run the engine on
fuel oil or gas fuel is mainly an economical issue that
depends on what is the cheaper (and available) fuel. The
fuel-gas supply system (FGSS) of a non-LNG carrier will
usually be based on high pressure cryogenic pumps.
Boil-off gas (BOG) and LNG carriers
Minimisation of both the loss of cargo and gas slip to
the atmosphere are fundamental issues when handling
BOG on LNG carriers. As BOG can be used for fuelling
the ME-GI engine, the BOG handling equipment can be
more or less integrated with the FGSS.
The main BOG handling and FGSS configurations of
LNG carriers are:
z BOG high pressure compressor for fuelling the engine
and gas combustion unit (GCU) to burn excess BOG.
The optimal working range of this configuration may
be improved by adding the possibility for partial

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 reliquefaction by decompression of gas from the high
pressure compressor.
z BOG reliquefaction plant to return the gas as LNG
to the cargo tanks or to an engine LNG fuel tank,
and high pressure cryogenic pumps and vaporiser to
supply the engine from either the cargo tanks or the
engine LNG fuel tank.
z BOG high pressure compressor for fuelling the
engine, high pressure cryogenic pump and vaporiser
to supply the engine from the cargo tanks and
a GCU to burn excess BOG. The optimal working
range of this configuration may be improved by
adding the possibility for partial reliquefaction,
by decompression of gas from the high pressure
compressor.
Gas and fuel consumption vs engine
load
The ME ECS has two control modes that allow the engine
to run in LNG laden or LNG ballast voyage, namely:
z Fuel-oil mode: the ME-GI engine runs on fuel oil only.
z Gas mode:
Gas operation: the ME-GI engine runs on gas fuel
with the minimum pilot fuel amount. The FGSS
delivers the gas flow and gas pressure specified
from the ME ECS.
Specified dual-fuel (SDF) operation: the engine
runs on a mixture of gas fuel and fuel oil.
The FGSS specifies a maximum limit of
gas mass flow to the ME ECS to be used
for propulsion, automatically, based on, for
example, the BOG amount and/or cargo
tank pressure control. The gas pressure is
specified by the ME ECS.

If the necessary fuel consumption to

achieve the required/commanded speed of
the engine is higher than the gas mass flow,
the consumption is topped up with fuel oil.
The proportion of fuel oil and fuel gas
Figure 2. Gas operation: ratio of fuel gas and fuel oil consumption vs engine consumption in gas operation is illustrated
load, running on a propeller curve. in Figure 2 for a fixed pitch propeller plant,
i.e. running on a propeller curve. The pilot
oil amount is fixed at a minimum, here 3%
fuel index, i.e. of the injection at nominal
maximum continuous rating (NMCR). At
lower loads, the fuel-oil ratio is higher.
In SDF operation, the amount of gas fuel
injected can vary from 20% to 95% fuel
index, which means gas fuel can be between
20% and 95% of the fuel consumption at
NMCR. At the minimum load for gas
operation (10%), the gas fuel part of the
consumption will be approximately 8.6% of
the consumption at NMCR.
Between 10% and 100% engine load, the
Figure 3. Specified dual-fuel (SDF) operation: ratio of fuel gas and fuel oil gas fuel amount can be varied as shown in
consumption vs engine load as a function of engine consumption and gas Figure 3. Note that the minimum values for
consumption limit specified by the fuel-gas supply system (FGSS).
pilot injection and gas operation depend on
the layout of the actual engine, i.e. the
derating of specified maximum continuous
Table 1. Gas specification for the ME-GI engine rating (SMCR) below NMCR.
Designation Unit Limit Value
Conclusion
Lower calorific value MJ/kg Minimum 38
The dual-fuel ME-GI concept has been
Methane (CH4) mol. % Minimum 85 readily adopted by the marine market and
can be used in container ships, ConRo
Ethane (C2H6) mol. % Maximum 15
vessels and LNG carriers. The ready-to-apply
Propane + butane (C3 + C4) mol. % total Maximum 5 design of the engine in combination with
the high system efficiency offers significant
Higher order hydrocarbons (C5 and
mol. % total Maximum 1 reductions in emissions, and meets customer
higher)
demands for a safe, highly reliable and
Nitrogen (N2) mol. % Maximum 15
fuel-flexible propulsion system.

38 January 2017
 Small scale Tom Toth,
Connect
LNG LOADING LNG AS,
presents

SOLUTIONS a floating
transfer
system.

NG is considered the clean

L fuel of choice for satisfying the

ever-increasing global demand from
the manufacturing, power generation and transportation
sectors. As the drive for cleaner fuel gathers pace, commercially
innovative solutions are required to drive future expansion and
diversification. Figure 1. The Universal Transfer
Norwegian innovation has played a key role in floating LNG System (UTS) is a floating loading
system, which takes advantage of a
transfer solutions over the past decade, particularly with
floating platform for safe connection
implementation of marine LNG transportation and transfer. In the of floating flexible insulated pipes
countrys maritime sector, close collaboration is nurtured between between an LNG carrier and a
government, technical institutions and the private sector, where terminal facility.
investment in R&D has produced tangible and commercially
successful outcomes.

39
 z Industry standard Emergency
(loading) Shut Down (ESD-1 and
ESD-2), which may be instigated
by either the LNG carrier, the UTS
or the terminal.
z Operator instigated emergency
mooring disconnection and
separation of the systems
platform from the LNG carrier.

Figure 2. The UTS is a fast-track solution, enabling small scale LNG terminals to be
built in off-grid areas at a lower cost, with fewer permitting issues due to minimal
marine footprint and at a faster pace than traditional loading solutions.
Connect LNG has followed along similar lines with the
development of its Universal Transfer System (UTS), which is
scheduled for completion in 2017.
Small scale LNG loading
The system has several applications within the emerging
small scale LNG marine loading sector. It is a floating,
small scale LNG import, export or bunkering facility designed
for sheltered locations.
The systems loading platform floats and may be
manoeuvred up to 500 m out from shore (depending on local
conditions) to a small scale LNG carrier that is moored to a
multi-buoy mooring system. It is connected to the shore-based
storage facility by two (or more) floating flexible LNG pipes,
one each for LNG and boil-off gas (BOG).
Features
The turnkey system is inclusive of the spread mooring,
floating loading platform, floating and aerial LNG pipes and
safety shutdown subsystems. Some of its features include
the following:
z The platform operating range allows the visiting vessel
to be moored up to 500 m from shore.
z A floating, loading platform, with DNV GL class approval.
z Flexible and floating LNG pipes, class certified for LNG
transfer.
z When idle, the systems platform is moored nearshore,
and the hose string remains connected to the platform.
Thus, the floating facility is out of the way of other
vessels when not in use.
z A conventional multi-buoy spread mooring provides an
economic and flexible mooring solution for a wide range
of visiting LNG vessels.
z Fast mooring or disconnection from the LNG carrier is
possible as the system uses a vacuum mooring system.
Mooring crew manpower is minimised and the mooring
operation is significantly simplified with no need for
mooring lines from the visiting vessel.
Benefits
The system can reduce the total
investment cost for a new, small
or medium scale marine loading
facility as there are no on or offshore
jetty loading platforms, berthing
and mooring dolphins or loading
arms required. As the LNG carrier
is mooring out from the shore line,
dredging can also be minimised.
The majority of the system can
be constructed offsite (at the shipyard), independent of
site-related weather and other construction-related delays.
The facility has smaller onshore and over-water real
estate/footprint requirements, and so may offer a solution to
loading where space limitations or vessel congestion
prevents the construction of a fixed berth.
The systems use of a floating flexible LNG pipe
eliminates the need for civil works.
Finally, operational safety may be increased, since the
loading occurs a significant distance away from the shore
storage tanks.
Operational parameters
The system is suited for relatively sheltered locations where
the loading operations occur under design environmental
conditions that satisfy the following criteria:
z Vessel size:
Any vessel size (although the market focus is on
carriers between 1000 m3 and 90 000 m3).
Maximum freeboard height (limited by maximum
length of aerial hose).
Flat hull section on either side of the manifold
required to receive vacuum mooring attachment pads.
z Floating flexible pipes:
Maximum length: 500 m (subject to detail review for
each project).
Size range: 6 20 in.
Number of pipes: two to six (loading and BOG).
Loading capacity: 50 10 000 m3/hr.
Applications
LNG operators are currently investigating using the system
in the following applications.
Augments a full scale LNG terminal
LNG exporters are seeking new markets and the evolution
of small and medium scale LNG demand will necessitate
splitting shipments of LNG into smaller load parcels.

40 January 2017
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Figure 3. The system may also be utilised as a dedicated
bunkering solution, or for loading between an FSU/FSRU and
shore.
However, many of the major LNG terminals are
constructed as loading facilities with multiple dolphins,
designed to take LNG vessels of 80 000 m3 up to the largest
of 260 000 m3.
While it may be feasible to accommodate a small scale
LNG carrier at a major loading terminal, it is unlikely to prove
a long-term practical solution for ongoing and repetitive
loading operations, due to logistical constraints.
Apart from tying up a major berth, which may be
economically unviable, there are operational difficulties to
consider, including the following:
z The layout of fenders and the wide spacing of mooring
points (generally quick release hooks) along a large
berth make it difficult to accommodate the mooring of a
small scale LNG carrier.
z For loading operations, a small scale LNG carrier may
have its manifold well below the deck of the jetty loading
platform, and access to the ships manifold may be outside
the operational envelope of the loading arms.
The UTS provides dedicated loading for small and
medium sized carriers, relieving the demand on the main
berths. It could be added to the seascape of an existing
facility without the need for major disruption to the major
berth operations during installation.
Energy for isolated or regional towns
The move toward clean energy is rapidly gathering pace and
LNG will eventually displace diesel and oil as the primary
energy source traditionally used for transportation, domestic
and industrial applications in many isolated communities.
Advances in LNG shipment, storage, regasification and
transfer technology are allowing smaller parcels of LNG to be
delivered economically. The UTS system is an extension to
these technologies, enabling construction of import
infrastructure that previously would have been prohibitively
costly to construct for many small and isolated communities.
The system offers a flexible solution for small scale LNG
import applications as its capital cost is substantially lower
than that of a fixed onshore terminal.
Creating a gas distribution hub
In remote regions not served by gas pipelines, LNG may be
imported for transport, power and industrial applications.
42 January 2017
The system may be installed to receive LNG cargo from
shuttle tankers and allow storage of the LNG within onshore
tanks.
An LNG truck loading facility could allow collection and
distribution to a wide selection of users. An extension of this
concept may include bunkering services, whereby LNG stored
in the onshore tanks is transferred to fuel vessels also using
the system.
A bunkering solution
The system can be configured as a bunkering terminal for
tugs, supply vessels and ferries. It may also be installed
within an existing port as an alternative to a dedicated
bunkering barge. The bunkering terminal could accommodate
multiple vessels and since the LNG supply tanks are onshore
the UTS offers a safer bunkering operation when compared
with a bunkering barge that must have on board LNG supply
tanks.
A gas bridge for nearshore applications
Solutions for small scale applications may include separation
of LNG storage from the regasification plant. As an example,
a floating storage unit (FSU) may be semi-permanently
moored nearshore to periodically receive an LNG carrier, in a
side-by-side mooring configuration.
The regasification plant may be located onshore, and a
subsea pipeline generally installed to connect the FSU with
the onshore regas facility.
As an alternative solution to the installation of subsea
pipelines, Connect LNGs UTS may be installed to provide a
loading bridge between the FSU and the onshore regas
facility.
The system could be considered as either a permanent or
temporary facility, offering a fast start-up, first stage solution
for a project where installation of a jetty is either
economically unviable or is planned for the future.
Conclusion
A floating LNG transfer system is a technically viable and
commercially attractive solution for transfer of LNG for a range
of small and medium scale applications.
Safety subsystems for emergency shutdown or
disconnection are similar to those already employed at a
typical fixed terminal and the floating system offers universal
compatibility to existing LNG carriers.
The floating loading solution provides the potential for
opening new markets for selling and distributing LNG, and the
system may also be adopted to transfer other media.
The system may be flexibly configured as a floating export
facility to add value and capacity to an existing terminal. It
may also be installed as a floating import facility for isolated
locations.
Over the next decade it is envisaged that LNG will become
the predominant fuel source for powering the growing range
of global commercial and merchant shipping fleets.
The floating loading system may also provide a flexible
and practical bunkering solution with the benefit of
transferring fuel from onshore tanks rather than tanks on
board the bunkering vessel itself.
severe conditions
Julien Castres Saint Martin, VINCI Construction Grands Projets,
France, and Patrick Genoud, Entrepose Contracting, France, look
at the safe delivery of large LNG storage tanks in severe conditions,
from Western Australia to Northern Siberia.

Figure 1. Yamal foundations and concrete shelter.

NG has reduced the pipe dependence of both consumers and producers. With LNG, natural gas

L extracted from remote fields can be brought into a more global gas market. The sites envisaged
for the development of natural gas liquefaction plants are, therefore, often located in remote
and sometimes hostile environments, such as the hot temperatures of Western Australia and the
Arctic conditions of Northern Siberia. The Entrepose Vinci Joint Venture (EVJV) team, comprising of
Entrepose Projets and VINCI Construction Grands Projets, has developed specific experience of such
projects as an engineering, procurement and construction (EPC) contractor. For Entrepose Projets, it started
with the Snhvit project, which was built between 2002 and 2005 at Melkya Island, Northern Norway,

43

Figure 2. Wheatstone Project LNG tanks concrete works
copyright Chevron Corp.
Figure 3. Wheatstone self-climbing formwork.
Figure 4. Wheatstone Project LNG tanks general view
copyright Chevron Corp.
located beyond the polar circle. In 2013, Yamal LNG awarded
EVJV the EPC contract for four large LNG storage tanks for
the liquefaction plant to be located even further north in
Northern Siberia, Russia, with winter temperatures below
-40C. Meanwhile, the companies are also serving as the EPC
contractor for the construction of LNG and condensate tanks
for the Wheatstone Project, which is located in the opposite,
but still demanding, conditions of Western Australia, where
hurricanes and temperatures above 40C pose different
challenges for an EPC contractor.
44 January 2017
Adapt foundation designs to face
extreme and remote conditions
Due to their height, their weight and the stringent settlement
requirements related to their function, LNG storage tanks
have always been a special structure when it comes to
foundation design. LNG tank foundations must be optimised,
while also taking into account the sites specific soil and
earthquake conditions. Bearing the load is not the only
function of the foundations. Seismically liquefiable soil layers
have to be compacted, and LNG tanks cannot accept more
than 1:300 deflection along the slab radius, and an overall
1:500 tilt on any diameter. Such criteria often requires a
combination of soil improvement and piled foundations.
In the permafrost of the Yamal peninsula, EVJV faced a
completely new challenge, with ground that is both
extremely rigid when frozen, but also heterogeneous and
unstable at depth and when it melts. Instability of the soil
has been mitigated by a thermo-stabilisation system, which
refrigerates the ground in winter months to ensure long-term
stability even in the summer seasons. The high stiffness of
the frozen soil, associated with thermal deformation of the
LNG tanks base slab, also makes it complicated to ensure the
integrity of the pile-slab connections. An innovative pile
system has been designed to allow, even at extremely low
temperatures, the displacements of the pile-heads that are
necessary to accommodate the slab deformations. Adaptation
and innovation were a key success factor on this unique
project.
The challenge in Western Australia was to keep a
reasonable pile grid, while dealing with the liquefaction
susceptibility of a soil layer under a seismic event. A
construction-oriented soil improvement design was proposed,
using the same equipment as for the piling activities in order
to avoid the high mobilisation and demobilisation costs of
extra equipment. The liquefiable soil layer was densified by
closed-end steel inclusions in the liquefiable layer only, on a
pattern compatible with the piling pattern; and by closing
the end of some of the piles, in order to reach the desired
compaction at each location in an optimised way. In a remote
location, the companys foundation engineers had to take into
account the scarcity of equipment, materials and manpower
to adapt the design.
Adopt a modular approach
In any LNG plant, the LNG tanks have to be built mostly on
site. However, some external parts of the LNG tanks can be
preassembled and shipped to the construction site, not only
to save time and cost, but also to put less pressure on the
manpower available on site. Externalising steel structures
and piping assembly at specialised yards helps to improve
the overall safety and quality performance.
This modular approach was implemented by EVJV for the
remote Siberian and Australian tanks, while it has not been
chosen for European projects. With modules, the detailed
design of the tank roof pump platform and riser is very
different and has to start earlier in order to anticipate the
procurement and fabrication of the steel structure, piping,
equipment and instrumentation. The main difference is the
structural design of the roof platform and riser, which no
longer rest on a concrete structure, but have to be integrated
in a steel structure that is strong enough to allow lifting and
freight of the modules.
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Figure 5. Arctic fox.
Figure 6. Yamal LNG Project LNG tanks general view.
Adapt procurement organisation
For remote sites, the procurement strategy has to be modified
to account for longer, more expensive, and seasonally difficult
shipments. All of the recent LNG projects ship items from around
the world to the construction site. In the case of LNG tanks to
be built in Northern Siberia, the only access to the site is by ship
on the Arctic Ocean. Freight in winter requires the assistance
of ice-breaker vessels, which is a costly and less predictable
method in terms of delivery date. Procurement has to be
anticipated and logistics adapted to such extreme conditions.
Safe delivery
Promote the highest health and safety
standards
The more severe the conditions, the more crucial it is for the
EPC team to remember the health and safety of the craft and
staff involved in the construction activities. Specific training
programmes are organised to raise awareness of cold burn or
dehydration risks. A fully equipped nursery is set up on site to
ensure life support in spite of the remote location. Personal
protection equipment (PPE) is also carefully selected for
adequate protection against the risks associated with the hostile
environment, while being as comfortable to wear as possible.
Manage social and environmental
performance
It is required that EVJV and it subcontractors help the
project developers to manage the social and environmental
46 January 2017
performance of the EPC phase of the project. This phase
has the most significant impact on both local communities,
with thousands of workers coming in with potentially
huge economic consequences, and the environment, with
potential destruction or pollution if proper assessment and
monitoring are not implemented. On the Yamal peninsula,
EVJV has a permanent contact with the Nenets community
to ensure that their feedback during the construction
phase is positive. The stringent social and environmental
protection policies are implemented throughout the
subcontracting chain, to ensure their performance by all
participants. In Western Australia, local communities provide
some of the workforce, and the EPC contractor manages the
environmental commitments that were made by the project
owner to protect biodiversity, throughout construction.
Adjust construction methodologies
On a more technical ground, the construction
methodologies have to be chosen and, if necessary, adjusted
in accordance with the projects context. With LNG tanks, a
telling example is the tank wall, which is a crucial part of
the structure. It is made of reinforced concrete and is heavily
prestressed in order to resist in case of LNG spillage inside
of the tank (an unlikely consequence of a major failure of
the inner LNG containment). On the Wheatstone Project,
in order to enhance the safety conditions and reduce the
use of manpower and lifting equipment, the decision was
taken to design and procure a self-climbing formwork, well
adapted to the hurricane hazard and the scarcity of labour.
On the Yamal Project, EVJV had to make the most out of
the summer seasons and minimise wintertime concrete
pouring. In order to fit in the summer windows and match
the project schedule, EVJV and subcontracting organisations
had to perform concrete works of two LNG tanks base slabs
and walls within the May to October periods of both 2014
and 2015. The choice was made to use sliding formworks
(or slipform). Each 40 m wall was poured in approximately
20 days, working without any interruptions.
Other adjustments are worth highlighting. Heavy
concrete works, such as haunches (wall-roof connection) and
roofs, were performed at temperatures of approximately
-30C on the Yamal Project thanks to a fully winterised
concrete supply chain, and a protected and heated
concreting area. Also, the hurricane hazard in Western
Australia led the EPC team to design innovative site
facilities with operational safety procedures in case of alerts.
In any situations, EPC contractors need an innovative
construction-oriented mindset to be able to support projects
in remote and potentially hostile locations.
Conclusion
The role of an EPC contractor is to accompany the LNG
project developers anywhere and to keep proposing
the most cost-effective and reliable EPC solutions, also
ensuring strict compliance to policies and regulations, as
well as adherence to sound practices on all levels of works
performance. Remote locations and severe conditions
require that the industry adapts its design and methodology
through open innovation in order to deliver timely and
cost-effective solutions for project stakeholders, while
keeping up with the utmost safety, social and environmental
performances.
 Wasim Younis, Symetri,
UK, presents the
benefits of adopting
analysis early on in
the design stage
within the LNG

Easing the industry.

n todays difficult market, engineers and

I designers are constantly facing new

challenges within the LNG industry,
including reducing costs, reducing weight, and
developing innovative product designs faster. As a
consequence of this, companies are now looking to
incorporate some form of digital prototyping to help
reduce design-to-market lead times. Stress analysis is
a key part of this digital prototyping process, enabling
designers and engineers to analyse and validate designs
before they are actually built. This also helps to reduce the
number of physical prototypes needed for physical testing before
first shipment.
Traditionally, stress analysis has been used by experts who
spent most of their time on analysis and product validation before
first shipment. In recent years, software simulation and design
companies, such as Autodesk, have been making stress analysis
software easier to use and understand. This in turn makes it easier
for designers and engineers within the LNG industry to adopt

47
 analysis early on with the design process and this is
where stress analysis has the most impact.
During a typical design process, designers and
engineers go through a series of questions that are
answered by building a working prototype or a series of
prototypes. The major issue with this method is that it is
timely and costly.
An alternative method is to use stress analysis to
validate designs before they are actually built. A typical
stress analysis process involves four core steps:
z Idealisation simplify geometry, including setting up
the analysis.
z Boundary conditions apply constraints, including
loads and material properties.
Figure 1. Tensile and compressive stress results.
Figure 2. Stress results with default mesh size.
Figure 3. Stress results with localised mesh control.
48 January 2017
z Run simulation and analyse analyse initial results,
including convergence of results.
z Optimisation modify geometry to meet design goals,
including changing original material.
Idealisation
This is arguably the most important step, and has a
significant impact on the speed and accuracy of the results.
Assemblies and parts can be simplified and idealised within
the modelling or stress analysis environment. Within the
stress analysis environment, simplification is typically
restricted to excluding non-structural components and
features. A common approach in idealisation is to reduce
the model into half a model, or even a quarter.
Boundary conditions
This step involves applying materials, constraints, loads
and mesh elements. The material properties are carried
forward from the parts environment into the stress analysis
environment. Typical constraints available include: fixed,
pinned, and frictionless. For example, if the component is
fixed using bolts or welds, then a fixed constraint would be
used. There are various types of loads available, including
force, pressure, bearing load, etc. Stress analysis also allows
the size of the mesh to be controlled both globally and
locally. Mesh size will have little effect on displacement
results, but can have a significant impact on stress results.
Run simulation and analyse
This step is primarily concerned with analysing the results
and ensuring that the design is fit for purpose. One of the
most important questions at this stage of the process is
how do I know the stress results are correct? One way
to answer this question is to ensure that the stress result
converges. A solution is to run simulation a minimum of
three times in the area of interest, with the mesh size
becoming finer in each simulation. If the stress value
remains within 10% difference between each simulation,
then one can assume that the stress value has converged. It
is normal to take the higher result from the last simulation
for design verification purposes.
Optimisation
This final step of the stress analysis process helps to
optimise designs. One example may be to reduce mass
against certain design criteria, which can be maximum
operating stress, overall displacement, etc. This is
mentioned later in the Optimised designs section of this
article.
Analysing and interpreting results is an important part
of the stress analysis process. It is essential to assess
whether the stress result has converged, as mentioned
earlier. This process is referred to as manual convergence
and it can be established using the following methods:
z Run analysis with default mesh settings. This will allow
a quick check of whether the structure is performing as
expected.
z Copy simulation and re-run analysis with a reduced
mesh size with a value typically half the size of the
default mesh size.
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Figure 4. Stress results on optimised design.
z Copy simulation again and re-run analysis again with
a finer global mesh. Alternatively, a local mesh control
can be used around the area of interest.
To use local mesh control around an area of interest, it
may be better to use split features to split the faces of the
component.
Normal and shear stress results can also help to better
understand the behaviour of the structure by visually
displaying tensile and compressive stress results as
illustrated in Figure 1.
Optimised designs
A unique feature of computer-aided design (CAD)
embedded stress analysis software, such as Autodesk
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Inventor Stress Analysis, is the ability to perform
parametric optimisation studies. Model parameters
can be accessed within the stress analysis
environment, providing the flexibility necessary to
experiment with different design configurations.
These configurations can also be validated against
design constraints, including stress, mass, safety
factor, etc., making it possible to create innovative
designs.
More and more companies within the LNG
industry today are taking further steps to help
enhance design productivity using engineering
simulation and analysis. To ensure best practice and
return from the software, companies are also using
training and services provided by Symetri across the
UK and Nordic countries.
However, no engineer would want to put speed
above reliability in carrying out finite element
analysis (FEA) testing tasks, especially in an area as
safety-conscious as the LNG industry. Therefore,
Symetri offers the design teams confidence with their
new solution by working alongside as consultants
either onsite or offsite on live projects.
Conclusion
For companies to remain competitive today, and
in the future, they need to empower designers and
engineers with easy-to-use simulation tools to help
them make better informed decisions early on.
 Automation for
PRODUCTIVITY AND FORECAST ACCURACY
Christian Sommerhoff,
n a recent study conducted by Honeywell Process
IWB, Germany,
outlines automation
considerations for LNG
I Solutions (HPS) and URC Research Inc., titled Datas
Big Impact on Manufacturing: A Study of Executive
Opinions, 63% of the respondents said that they believe
data can enable well-informed decisions in real time.1
distribution Moreover, one of the major threats seen by executives is
unscheduled downtime. In todays world, people expect
to trucks. to be able to access any data at any time on any device.
There is less time for bureaucratic operating models
and traditional set-ups, and workflows call for review in
order to stay competitive.

51
 and opportunities for
faster decision making
and safeguarding. If a
terminal automation
solution is installed at
multiple sites within
an overall global set
up, a scalable terminal
automation system
(TAS) solution adds
even more value.
Real-time information
is collected for further
analysis, which can
be reviewed on
demand, and for
accurate, fact-based
decision making in a
single standardised
format, regardless
of time zone and
local language.
Since international
safety standards
Figure 1. System architecture. are governed, the
utilisation of external
administration, as well
Global management consulting firm, McKinsey & Co., as the transfer of the administration of drivers and trucks
emphasises the importance of both organisational to trusted third parties, can be outsourced in order to save
agility and instant access to information for frontline internal human resources.
decision makers or via the real-time deployment of So, when discussing terminal automation and truck
maintenance teams linked to predictive-maintenance loading, there needs to be a shift in mindset from merely
algorithms.2 managing and monitoring loading and unloading, to the
In addition to this, the current operating exploration and utilisation of data, generated around every
environment is undergoing significant change. An single instance within the distribution process of LNG. It is
abundance of resources is leading to sustained lower oil crucial for data to review not only the supply chain, but
prices and a focus on cost, efficiency, and speed.2 In a also to drive engagement with clients and logistics
time when data generation is expanding exponentially, partners within the ecosystem.
new opportunities for analytics and decision-making are IWBs web-based manufacturing execution system
arising. Not only will there be many changes in the way (MES), CRYO.TAS, was first installed in 2006 and is
that talents are employed, but routine jobs will currently being deployed by global players, such as
eventually be replaced by automation across industries. Air Liquide and the Messer Group. Originally designed to
This is not only a tremendous incision in productivity, fulfill all requirements for the automated distribution of
but also in regards to securing safety. LOX, LIN, LAR, CO2, and H2, it suits the requirements for
In a global and multilayer marketplace, the ability to LNG and for all products forwarded in bulk. Through the
analyse data so as to position oneself and make implementation of ASP.NET technology and a customisable
fact-based decisions becomes a matter of survival for and comprehensive cockpit, this solution can be tailored to
any business in order to keep up with this highly the overall requirements of demanding organisations,
competitive industry. primarily in the oil and gas industry. The programs open
architecture facilitates the connection to various external
Utilising automation systems, such as the integration in already existing
An important aspect within any supply chain is the enterprise resource planning (ERP) systems via
distribution of goods to customers or forwarding standardised interfaces. The basic elements of the system
partners. Transferring LNG is a complex process that include the following:
requires extreme caution and the precise observance z Access controls to regulate access to a plant.
of safety procedures. Automation and monitoring
z An identification system for the automation of inspections.
contribute to the improvement of safety and
productivity, and ultimately lead to cost reductions. Fully z A discharge control to monitor and regulate the loading
automated truck loadings offer a number of advantages process.

52 January 2017
FROM THE ORGANISERS OF:
z An analyser control for continuous quality control and
evaluation.
z The weighing of vehicles to prepare loading papers,
balancing and quota administration.
z A multi-factory module to integrate other production
plants.
The overall system
architecture
The system itself consists of three different
communication layers for data exchange between the
individual subsystems. Firstly, ethernet for web-based
access to the TAS server, FTP and file streaming.
Secondly, industrial ethernet for secure data exchange
where communication from and to the SQL server takes
place. Thirdly, a field bus system that monitors all
processes near components around the tank and where
all aspects of loading and analysis are controlled. All
recordings and actions take place in real time.
While most companies have a common set of similar
requirements with regards to safety and validation, the
individual aspects can be easily modified. The entire
system that bridges the gap between ERP and SCADA is
modular-based to permit the simple integration of new
components. All functions and communications in the
SQL database are specified as follows:
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z Parameters/messages: parameters define the function of
an object (e.g. flushing times for an analysis device). The
message configuration permits the output of instructions,
as well as fault or event messages of an object.
z Data/alarms and events: this module is used to hand over
all data of an object to the SQL server (e.g. analysis values,
or other object events and alarms.
z OPC: the data handover to the subsystems uses OPC
servers and clients.
z Business logic: this interim layer contains all basic
functions of objects (e.g. an analysis procedure, loading
orders for filling points, inspection of products, etc.). For
each object, a corresponding business logic must be
present.
All arising data from the loading and analysis PLC can
be handed over to a present control system in nearly real
time via standardised interfaces. The system can be
integrated into a SCADA system for the visualisation of
process data or to hand over external control commands to
the system.
Data collection and predictive
analytics
This TAS solution collects all data points starting from
when the drivers enter the premises. Each time gas is
picked up, this is identified through RFID or another exiting
ID system.
The importance of accessing data points was referenced
at the beginning of this article. If automated truck loading
management is considered simply as a tool for advanced
order processing, then a fundamental aspect of data
collection would be overlooked that backs up a potential
proof of obligation, or the performance tracking of
customers and partners in the ecosystem.
By numbers
To date, 357 364 orders have been executed with CRYO.TAS
across Europe. 218 truck fleets with 5629 trucks and 4295
drivers, including all authorisation processes, have been
operated and monitored. This relates to 12 725 customer
tanks, 67 storage depots, 70 filling places and 124 analysers
with 180 test gases for calibration and 146 analysis points.
At the end of September 2016, over 2 million analysis
results of all measured components were available across
the entire installed base, with 714 939 weighing receipts
and certificates generated and distributed by email.
Conclusion
Many oil and gas companies have complex, legacy IT
systems that have evolved over decades, and which now
contain many different islands of disparate data sets.3 The
challenge for many might be to extract more value out of
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precise data, collected in the process of distribution
to tanker trucks, which can be best derived through
standardised systems. CRYO.TAS has proven its benefits
with a large installed base of LOX, LIN, LAR, CO2 and
H2 distribution. A similar core system underlies the
automatic distribution of LNG. While at a first glance
one might think automation eliminates jobs, there
is actually major potential in shifting priorities by
creating new assignments for analytic talents that
work hand-in-hand with operations and sales. Analysis
of past incidents is relevant when exploring the root
cause of failure. Accurate business forecasting is key
to the success of a company. Any investment that
supports safety and forecast accuracy, while reducing
operational expenses, pays off automatically.
References
1. Datas Big Impact on Manufacturing: A Study of
Executive Options, Honeywell Process Solutions
(HPS) and KRC Research Inc. from 23 May to
8 June 2016.
2. HANDSCOMB, C., SHARABURA, S., and
WOXHOLT, J., The Oil and Gas Organization of The
Future, McKinsey & Co., (September 2016), http://
www.mckinsey.com/industries/oil-and-gas/our-
insights/the-oil-and-gas-organization-of-the-future
3. BERTOCCO, R., and PADMANABHAN, V., Big Data
Analytics in Oil and Gas: Converting the Promise into
Value, Bain & Company, (2014).
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Matrix Service Company 41
Neuman & Esser 04
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VINCI Construction 49
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 ...ON
15FACTS AUSTRALIA
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56 January 2017
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