2014 Conference

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DAY FOUR
Thursday, 27 March 2014

KOGAS shares Korea’s LNG bunkering aspirations

By ADRIENNE BLUME
On Day 3 of Gastech, Kim Kidong, the
head of principal research at KOGAS, spoke
to attendees about developing a national
infrastructure for LNG bunkering along
Korea’s coastline. KOGAS’ interest in LNG
bunkering is based on its large employment
in the shipping industry, the importance of
the export industry to the Korean economy,
and the government’s desire to “go green”
and achieve high fuel efficiency and envi-
ronmental sustainability. Korea wants to
support the shipping industry as it strives to
accommodate upcoming emissions regula-
tions and sulfur content limits.
Global marine fuel demand growth
is expected to increase by 2.3% per year
through 2030. To accommodate future
emissions regulations, several options are
available. These options include using
LNG as fuel, which will help shippers
reduce SOx, NOx, PM and CO2 emissions;
the use of scrubbers for exhaust gas clean-
ing in the presence of heavy fuel oil (HFO);
the use of high-cost, low-sulfur marine fuel
in Emission Control Areas (ECAs); and
other solutions, such as avoiding ECAs or
using dual-fuel engines (i.e., HFO/LNG,
HFO/marine gas oil, etc.).
Scenarios for marine LNG use in
Korea. Kidong offered an LNG bunker-
ing analysis that estimated LNG demand
under several scenarios at Korea’s main
ports: Busan New Port, Busan Old Port,
Incheon Port and Pyeongtaek Port. Annual
LNG fuel demand for these ports over the
next 20 years can be estimated by examin-
ing vessel movements, the number of ves-
sels visiting the ports, the fleet composi-
tion, the calculation of fuel consumption,
the volume of marine diesel fuel demand
and the volume of LNG fuel demand. In
Korea, demand for LNG as a marine fuel
is expected to rise to 20,341 thousand tons
per year (Mtpy) by 2035.
Under a high-demand scenario, with
rapid economic growth and strict emis-
sions regulations, Korean LNG demand
could rise to 1,489 Mtpy by 2020, to 5,850
Mtpy by 2025 and to 20,341 Mtpy by 2035.
Under a low-demand scenario, these vol-
umes would be approximately 390 Mtpy
in 2020, 2,690 Mtpy in 2025 and 14,575
Mtpy in 2035. Kidong praised LNG as “a
competitive fuel for the future, compared
to other bunkering fuels.”
Risk assessments are also necessary for
LNG bunkering at Busan port, which is
KIM KIDONG, KOGAS
See KOGAS, page 19

Gastech sets its sights on Singapore

By BILLY THINNES
During a press conference Wednesday afternoon, Gas-
tech announced that its next official destination will be
Singapore. The sovereign city-state offers the location
and amenities that Gastech organizers were seeking, when
deciding upon a 2015 location.
“The decision has been a year in the making,” said
Matthew Meredith, executive vice president for DMG
Events. “We look at various locations, with the view of
identifying where the industry wants to go, and where
the opportunities are available. It was clear, early in the
process, that Southeast Asia offered a clear opportunity,
and it was logical that the location would be Singapore,
given its proximity as a trading hub.”
Singapore has a vibrant energy industry, which pro-
duces, transforms and supplies energy in various forms
to all sectors. This is largely dominated by the electricity
generation and oil refining sector. Petrochemical product
manufacturing is also another key component of Singa-
pore’s energy industry. It is presently a global leader in oil
trading and in the movement of oil tankers.
“We worked very closely with the authorities, and the
venues in Singapore, and it was a relatively easy process,
given those discussions,” said Mark Carr, president of
DMG Events. “The event will also be held in association
with Singapore International Energy Week. As a result, Steve Hill, the president of LNG and oil marketing for
we will receive the support of the Energy Market Author- BG Singapore, also weighed in on the announcement. “As
ity in Singapore and IE Singapore. The support of these Singapore’s LNG supplier, we are delighted to be hosting
entities will be vital.” the 28th edition Gastech conference and exhibition in
Among other factors, Singapore is geographically well- Singapore, in 2015,” he said. “As one of the world’s most
positioned, and has the requisite financial expertise and significant gas events, we look forward to welcoming all
infrastructure. If an LNG trading hub is, indeed, success- of the industry’s key players and decision-makers for a
fully established in Asia, this could lead to diversification four-day event that promises to deliver significant busi-
of Asian gas prices away from the traditional indexation ness opportunities and networking at the highest level.” ■
to oil, potentially lowering gas prices in the region, as
well as moderating the volatility of such prices, due to oil
price fluctuations. Such increased price competitiveness,
as well as security of our energy supply, would lead to
economy-wide benefits for Singapore.
“BG Group has announced they will host the event
in Singapore, following the success of their hosting in
London,” Meredith added. “We are pleased to be working
again with BG Group. We have received an overwhelming
response from our stakeholders at Gastech, here in Korea,
and as a result of that, 75% of the exhibition space has
already been allocated during this show. We are anticipat-
ing an even bigger event in Singapore, given the positive
feedback we have received from conference delegates and The gas industry will convene in Singapore for Gastech 2015.
VIP Programme participants.”
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DID YOU KNOW?
US Senator wants streamlined
LNG export approvals
In the wake of an unusually quick
approval of an LNG terminal permit by
the US Department of Energy (DOE),
Senator Mary L. Landrieu (Dem.—
La.) is calling for streamlined, efficient
approval of remaining export permits
throughout the country. Landrieu’s com-
ments followed DOE’s approval of the
Jordan Cove LNG terminal in southern
Oregon on Monday.
This is the seventh permit that DOE
has approved, and Landrieu said she will
continue to press for an efficient, timely
process to approve 24 remaining per-
mits. On Tuesday, Landrieu held a hear-
ing on “how energy exports can create
high-paying jobs and make America an
energy superpower.”
Korean Register
“The Department of Energy’s
approval of the Jordan Cove LNG export and GAS Entec sign
cooperative MoU
terminal in southern Oregon is neces-
sary to create more high-paying jobs in
America and to solidify the U.S. as an
energy superpower,” said Landrieu. “A
quick and efficient approval process to
responsibly export natural gas from our Korean Register (KR), an IACS mem- cooperate on the development of LNG-
shores will also reduce the stronghold ber classification society, and GAS Entec fuelled ship tanks and LNG bunkering
that countries, like Russia, currently ENG CO., LTD, a company specializing shuttles. Co-operation will also extend
exercise over their neighbors. I appreci- in process engineering, such as gas han- to exploring the possibility of providing
ate the accelerated pace by which this dling systems for LNG-fuelled ships, have engineering services for LNG cargo con-
permit was issued, and I will continued signed a memorandum of understanding tainment systems, as well as education
to press for an even more streamlined to co-operate on LNG bunkering initia- & training in the areas of operation and
process in the future.” tives and other related business oppor- maintenance for LNG bunkering shuttles
Monday’s approval of the Jordan tunities. The MoU allows both parties to and LNG-fuelled tanks. ■
Cove project follows last month’s permit
for Sempra’s project in Cameron Parish,
Louisiana. The firm waited more than
two years for DOE’s approval. ■

Conference Programme
THURSDAY, 27 MARCH
TECHNICAL STREAM
MORNING
Contracting and Fabrication: The Greatest Challenges
09:00–09:10 Chairman’s Welcome
■  Paul Sullivan, , Global Director of LNG and FLNG,
Worley Parsons
09:10–09:20 The Gastech Young Engineer Foundation— C. W. KWOK (left), chairman of GAS Entech, and Y. K. CHON, chairman and CEO of
Winning Essay Presentation Korean Register (KR), seal the terms of their MoU during a signing ceremony at Gastech.
■  Laura Musick, Process Engineering, Black & Veatch

09:20–09:50 Meeting the Execution Challenges of Prelude FLNG

■  Alain Poincheval, Executive Project Director, Technip CLARIFICATION
09:50–10:20 Type B Tanks: Meeting the Demands for Storage
with the Growth of FLNG Projects
An article headlined, “An Indispensable Forum,” in the Day 2 edition of the con-
■  Kang Joong Kyoo, Energy System R&D Team Leader,
ference newspaper, may have inadvertently suggested that the Office of the Federal
Coordinator for Alaska Natural Gas Transportation Projects was considering sanc-
Daewoo Shipbuilding & Marine Engineering
tioning an LNG project in Alaska. In fact, this agency is not involved in sanctioning
10:20–10:50 Utilising Integrated NGL/NR technology for the first time LNG projects. ■
in Qatar on the Barzan Gas Project
■  Saad Al-Kaabi, Senior Engineer (Systems Completions),
RasGas Company Limited Published by Hydrocarbon Processing

Gastech
10:50–11:20 Understanding Floating Liquefied Natural Gas Vessels as four daily editions, 24–27 March 2014.
If you wish to advertise in this
and the Supply Chain
newspaper, or to submit a press release,
■  Ciaran McIntyre, Head of Compliance Projects,
please contact the editor via email
Korea, Lloyd’s Register at Billy.Thinnes@GulfPub.com.
11:20–11:50 Adaptation and Application of the Rolls-Royce Trent 60
Engine for Offshore Facilities
Advertisers Publisher
■  Andrew Buckenberger, Product Manager, Rolls-Royce Energy Bret Ronk
ADNOC...................................................... 4
11:50–12:20 Evaluation of Fuel Gas Supply Options Gastech Contacts
Atlas Copco����������������������������������������������7 Michael Cluskey
of ME-GI engine for LNG Carriers
Chiyoda...................................................... 1 Samantha Ling
■  Ki-Hong Kim, Research Engineer, Advanced Technology
Institute, Hyundai Heavy Industries Co., Ltd. Gastech........................................15, 23, 24 Editor
Billy Thinnes
GTT............................................................ 13 Billy.Thinnes@GulfPub.com
CONFERENCE AND EXHIBITION OPENING TIMES Hoegh LNG............................................... 5 Executive Editor
Kogas���������������������������������������������������������9 Kurt Abraham
Conference Exhibition
QatarGas.................................................... 1 Contributing Editors
Monday 24 March 2014 09:00–18:00 12:00–18:00 Adrienne Blume
Tuesday 25 March 2014 09:00–18:00 10:00–18:00 Gulf Publishing Company�����������������2, 11 Ian Lewis
Wednesday 26 March 2014 09:00–18:00 10:00–18:00 Photographer
Thursday 27 March 2014 09:00–13:00 10:00–16:00 Kelly Abraham
Production Manager
Angela Bathe
To see the schedule for Centres of Technical www.HydrocarbonProcessing.com Artist/Illustrator
David Weeks
Excellence (CoTEs), please see page 7 2 Greenway Plaza, Suite 1020
Advertising Production Manager
Houston, TX 77252-77046 USA
+1-713-529-4301 Cheryl Willis

Gastech Conference Newspaper Thursday, 27 March 2014  3

 Regasification
• Four Floating Storage and Regasification Units (FSRUs) on order from
Hyundai Heavy Industries (HHI), for delivery 2014 and early 2015. Two of
the units on long term contracts to Perusahaan Gas Negara, Indonesia and
Klaipedos Nafta, Lithuania
Transportation • Operating a fleet of six LNG carriers, including two regasification vessels
• A highly skilled organization with a wide range of competence gained
through LNG operation since 1973
• A fully integrated company including in-house fleet management

FLNG

Europe must address LNG supply challenge

By IAN LEWIS

Europe’s gas buyers need to address the challenge of
meeting a projected upturn in gas demand on the continent,
against the context of stiff competition for LNG supply
from Asia buyers, a leading Qatargas executive told Gas-
tech on Wednesday.
Alaa Abujbara, COO, Commercial & Shipping, said
Qatargas’ gas portfolio has shifted markedly toward Asia
over recent years. In 2010, 25% of contracted supply was
earmarked for the Americas, 35% for Europe and 40%
for Asia. By 2013, 5% of deliveries went to the Americas
(largely due to the advent of cheap US shale gas produc-
tion), 25% to Europe and 70% to Asia.
This shift in patterns reflects a changing approach by
Qatar, which aims to present itself as a proven, reliable
LNG supplier that also possesses the flexibility to react to
changing market conditions.
European LNG imports have slumped dramatically in
recent years, falling to around 40 million t/y, but Abujbara
said demand was set to rise sharply over the next decade,
as economic recovery kicks in, predicting European LNG
demand would reach 100 million t/y by 2025. He pre-
dicted that tougher environmental laws requiring cleaner
fuels would aid a switch to gas in Europe. Recently, gas
has been losing out to cheap coal shipped from the US, in
countries such as Germany and the UK.
“Europe doesn’t realize what’s coming,” he said.
“Europe will move to recovery very soon, and I think some-
body has to meet this demand in the future.” Abujbara said Qatargas train. It takes a long time, he said. “We believe
that Europe needed to start lining up new suppliers soon: other new LNG supply projects presently under construc-
“It could be the US as a potential supplier in the future, and tion and under tremendous pressure around the world, will
other regions around Europe will be able to supply them. find the long-term journey extremely challenging.”
But I think maybe it will come from the United States.” Qatar hopes that, with its huge capacity already in place,
Abujbara said the European gas market needed to it can compete effectively with potential new supply, some
develop a new paradigm. “The hub has been established of which remains highly speculative. Abujbara believes
for a long time. The liquid market is there. But I think, in that long-term contracts will continue to dominate the
the future, we are gong to see a shift in the market. People industry, as they give confidence to both buyers and sell-
need to compete for the gas, as long as that gas continues ers to finance the large-scale investments needed to meet
to go to higher-value markets like Asia,” he said, noting rising LNG demand. ■
that the current trend is for cargoes delivered to Europe to
be diverted to the more lucrative Asian markets.
“Business is going to continue, but it’s not going to be
NBP [National Balancing Point] pricing anymore. It needs
to compete with Asia, and this is something that has to be
shifted to a different pricing mechanism,” he said.
Qatar has long been the global leader in LNG exports,
developing capacity capable of producing 77 million t/y,
more than three times what second-place Malaysia pro-
duced in 2012. However, Qatar now faces stiff competition
from the raft of new LNG projects, either under way or in
the pipeline in Australia and elsewhere. However, Abujbara
suggested that much of this new supply is likely to prove
hard to bring to market as fast as its backers would like.
“Since the discovery of [Qatar’s] North field, it has ALAA ABUIJBARA, Qatargas
taken 40 years until the completion of the most recent

Japanese analyst sees trends

in Asian LNG procurement
By KURT ABRAHAM
Although total global LNG trade did
not grow much during 2013, there were
several interesting trends that emerged
within the numbers, said a leading Japa-
nese gas analyst. Hiroshi Hashimoto,
senior analyst, Gas Group, at the Institute
of Energy Economics in Japan, noted that
LNG imports in Northeast Asia were up
5% last year, to 160 million tonnes. There
were notable increases in imports by China
and South Korea, while Japanese activity
remained relatively unchanged.
“In Europe, the LNG market shrank
again, losing 25% and totaling just 12 mil-
lion tonnes,” said Hashimoto. “Thus, this
decline coupled with the growth in imports
by China and South Korea, meant that
Asia’s share of global LNG trade increased
proportionately.” Ironically, he added, the
lost LNG volumes in the European mar-
ket were easily offset last year by supplies
of Russian pipeline gas. As European gas
demand has decreased significantly, due to
the sluggish economy and reduced com-
petitiveness of gas against other energy
sources, gas buyers are renegotiating long-
term contract prices. Furthermore, they are
diverting Atlantic-region LNG cargoes to Among a number of major issues facing Trade Agreements with the US. And yet,
Asia and South America at higher prices. the global LNG market, said Hashimoto, the potential supplies cannot be over-
Another trend noted by Hashimoto is one that stands out is whether or not the looked, he added, because the US shale
that long-term supply contracts from tra- US government will approve the export gas production, on an annual basis, is now
ditional producers in Asia are expiring, of LNG to countries that do not have Free greater than the global LNG trade. ■
and both buyers and sellers are opting to
renew deals with smaller volumes than
the original contracts. In addition, many
of the deals are of short-term nature. For
instance, in Japan, “short-term procure-
ment is growing, in terms of its share of
total LNG imports,” said Hashimoto.
“Japan procured more than 20% of its
LNG through short-term transactions in
2011 and 2012. Also, over the last four
years, the sources of LNG supply to Japan
have shifted, with Australia growing
noticeably as a supplier.”
Hashimoto pointed out that the price
gap for gas, worldwide, is persisting.
“There is a huge gap, which is not going
away, between the relatively high prices
that Japan is paying, and the low prices
for gas coming out of North America,” he
said. And, when one looks at available sup-
ply, “the overall balance in the worldwide Everybody is having fun at Gastech.
LNG market does not show any tightness.”

Gastech Conference Newspaper Thursday, 27 March 2014  5

Zeebrugge leads the way in marine
LNG diversification
By ADRIENNE BLUME

In a late-morning presentation on
Wednesday, Fluxys sales manager Piet-
erjan Renier shared ideas on diversify-
ing Belgium’s Flanders-based Zeebrugge
regasification terminal into a hub for
small-scale LNG.
Marine LNG: A “chicken-and-
egg” scenario? Renier called the issue
of marine fuel diversification to LNG—
specifically the need for greater truck-to-
LNG fueling infrastructure—a “chicken-
and-egg problem,” one for which Fluxys
has developed several solutions.
Fluxys, an independent gas infrastruc-
ture company for Europe, owns trans-
mission grids and storage in Zeebrugge,
PIETERJAN RENIER, Fluxys
and participates in pipelines and other
terminals. The Zeebrugge terminal has
seen 27 years of operation, and it can
receive LNG carriers, sized from very
small to Q-Max. To date, the terminal has
unloaded 78 million tons (MMt) of LNG
from 1,350 ships.
The Zeebrugge terminal has three
users and a capacity of 6.7 MMtpy. Since
2008, Fluxys has focused on creating a
new LNG hub for Europe at the terminal.
Fluxys aims to make Zeebrugge a versa-
tile tool for clients, with optimum take-
away capacity, optimum LNG reception
flexibility and security of supply.
“You have to be flexible with your
regas terminal,” Renier said. “It’s a lit-
tle bit like a Rubik’s Cube—you need to
move it [around], or it won’t last.”
Zeebrugge’s LNG transforma-
tion. Since 2010, the terminal has grown
into a diversified hub for small-scale
LNG. The benefits of using LNG as fuel
for ships and trucks, explained Renier, are
an immediate impact on carbon footprint,
an immediate benefit to the human health
footprint, and a favorable price differen-
tial compared with traditional fuels. LNG
usage will help improve the area’s poor
air quality, which results primarily from
heavy shipping activity.
New sulfur emissions standards are an
important driver for the shipping industry
to switch to LNG by 2015. LNG is the most
sustainable alternative to heavy fuel oil
(HFO) for shipping, Renier explained. HFO
requires expensive scrubbers and waste
treatment. Marine diesel, on the other hand,
meets 2015 sulfur requirements of 0.1%,
but it is very expensive. LNG, however,
is not characterized by sulfur issues and
has the highest emissions reduction among
marine fuels. LNG also can meet stricter
emissions standards in the future, as well
as European climate and clean air policies.
Additional LNG studies planned.
Moving forward, Fluxys intends to under-
take a North European LNG feasibility
study. It recently completed three in-depth
LNG studies in Belgium with around 40
stakeholder companies. An LNG infra-
structure logistics study was concluded
in 2012, and an LNG regulatory aspects
study and detailed LNG safety study were
also conducted. Among other issues, the
safety study examined where to place a
small-scale LNG bunkering facility.
There have also been agreements
between the ports of Antwerp, Zeebrugge
and Singapore to facilitate LNG supply to
the shipping trade, which Renier called an
important triggering effect.
The first truck-to-ship LNG operations
began at Zeebrugge in 2010. The termi-
nal can accommodate 4,000 loadings per
year, with destinations to Belgium, The
Netherlands, the UK, Germany, Poland,
industrial sites without pipe gas supply,
and LNG fueling stations for trucks.
Cracking “the egg.” A large remain-
ing challenge is the development of
downstream LNG bunkering infrastruc-
ture. LNG investment is expensive, and
the industry is hesitant to invest—a prime
example of a “chicken-and-egg” scenario.
However, Fluxys is investing to make
sure the market will develop. The com-
pany is investing in a second jetty, set for
completion in 2015, to reload both small
and large ships. It also will install a load-
ing bay for trucks carrying LNG to ships,
and it is studying additional downstream
investments in bunker terminals. Renier
noted that Fluxys would like to work with
other countries to build up an LNG fueling
network for trucks—first in Belgium, and
then in other countries.
Concluding his presentation, Renier
touted the successful metamorphosis of
the Zeebrugge terminal into a versatile
LNG hub with multi-shipper operations,
optimum reception flexibility and opti-
mum destination flexibility, for both piped
gas and LNG. ■

LNG fuel promises much, if hurdles can be overcome

By IAN LEWIS
LNG is already becoming established as a fuel to power
LNG carriers, and it could prove hugely advantageous in
other shipping, given its lower emissions and potential
cost savings, compared to marine oil. However, the ship-
ping industry needs to address a number of issues before
widespread adoption of LNG fuel can take place.
The benefits of LNG fuel are being thrown into sharp
focus by ever-tighter regulations around the world, gov-
erning emissions of CO2, SOx, NOx and particulates, where
LNG scores heavily over marine oil.
Chris Clucas, Group Fleet director of Bernhard Schulte
Shipmanagement Ltd (BSM), and Stephen Nolan, techni-
STEPHEN NOLAN, Schulte Marine Concept Ltd.
cal manager of Schulte Marine Concept Ltd, told Gastech
that a design project devised by Schulte had studied the
potential for LNG fuel to be used in a dual-fuel configura-
tion on a type of mid-sized container ship used commonly
around the world.
The study indicated that, for the same energy input, LNG
produces 35% less CO2 than heavy fuel oil. They also found
that LNG would satisfy international and regional SOx
emission regulations and provide more scope to optimize
a vessel’s Energy Efficiency Design Index (EEDI)—an
increasingly important consideration for the industry.
However, they warned that there was a big differ-
ence between using LNG as a fuel on an LNG carrier, as
opposed to a container vessel. On an LNG carrier, person-
nel are skilled in handling LNG, and the fuel can be taken
directly from the ship’s cargo. On a container ship, training
in dealing with LNG is needed, and the extensive storage
required for LNG fuel would take up valuable space that
would otherwise be occupied by paying container cargo.
For the same energy input, LNG needs 1.6 times more
space to store than fuel oil.
The positioning of the storage tank is also a major con-
sideration. In particular, LNG’s more hazardous nature,
in the context of an escape of fuel, means tanks need to be
located where they meet safety regulations. Other safety
features, such as sensors to detect gas escapes, would also
need to be installed on container vessels.
The range for a vessel using LNG as fuel is another
major consideration. While a fuel oil-driven container
ship of around 3,000 TEU (20-foot equivalent units) in
size could run for 18,000 nautical miles, a similar capac-
ity, dual-fuel-powered vessel might only manage 7,000
nautical miles. This shorter range effectively restricts the
types of voyages, on which LNG-propelled vessels are
likely to be used in the short-term, to those where they
can refuel more frequently.
The limited network of ports where LNG fuel bunker-
ing is available at this relatively early stage of the tech-
nology’s development further limits the routes on which
LNG powered ships can be used. “This is something we
need to take out to the whole industry and start looking
at very closely... the whole industry needs to do its bit,”
said Nolan.
Clucas said these limits to adoption of the dual-fuel
solution need to be overcome by collaboration across the
industry. He pointed to the recently created Society for Gas
as a Marine Fuel (SGMF), of which he is president, as a
vital agent for progress.
SGMF is a sister organization to Society of International
Gas Tanker and Terminal Operators (SIGTTO). He says
BSM’s extensive experience in training personnel in safe
cargo handling on LNG carriers has been incorporated into
a training regime drawn up for vessels, where personnel
are not expected to be experienced gas tanker operators. ■

6  Thursday, 27 March 2014 Gastech Conference Newspaper

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Centres of Technical Excellence (CoTEs)

THURSDAY 27 MARCH 2014
HEALTH, SAFETY, SECURITY AND ENVIRONMENT (HSSE) PIPELINE INFRASTRUCTURE NGL AND GTL TECHNOLOGY
Exhibition Theatre A Exhibition Theatre B Exhibition Theatre C
Introduction Introductory remarks Introductory remarks Introductory remarks
10:30–10:35
Session 1 Balancing the roles of machines and humans Global outlook for the gas pipeline sector Shale gas and NGLs in the refining sector:
10:35–11:00 for better HSSE from an Asian perspective innovation and opportunities
Maurice Wilkins, Vice President, Global Marketing Jason Waldie, Associate Director, Peter Stewart, Chief Energy Analyst,
Center (USMK), Yokogawa Electric Corporation Douglas-Westwood Pte Ltd Interfax Global Gas Analytics
Tom Fiske, Global Strategic Technology Marketing
Group, Yokogawa Electric Corporation
Session 2 Transforming safety performance Complex technique for integrity improvement GTL—a 40 year journey of innovation
11:10–11:35 David Turberfield, Asia Pacific Managing Partner— of the feeding line Bas Otte, Business Development Manager GTX,
Performance and Assurance, Environmental Resources Sang-Hyuk Kim, Manager, Trunk Line Improvement, Shell Integrated Gas
Management (ERM) KOGAS
Session 3 Siting LNG terminals in sensitive environments— Advanced technology for 3-ply tape coating systems Gas treating—sulfur recovery—upgrading
11:45–12:10 a case study from Hong Kong and long term experiences Claus technology
Craig Reid, Partner, Environmental Resources Mark Kan, Area Sales Manager CEE, CIS, Matt Thundyil, Business Unit Manager, GTC Technology
Management (ERM) Turkey and South Korea, DEKOTEC Gmbh
Session 4 A cryogenic camera technology for inspection Greenhouse gases and cost reduction Smaller scale GTL—a method of gas monetisation
12:20–12:45 of LNG storage tank using compression transfer equipment Neville Hargreaves, Business Development Director,
Cha Hwan Kim, Deputy Manager, Technical Planning Won-Sun Woo, Manager, Trunk Line Improvement, Velocys
Group, KOGAS KOGAS
12:45–13:45 Lunch Lunch Lunch
Session 5 Lightweight composite solutions delivering AIM+: Integrated approach to asset integrity ORYX GTL: Recent initiatives enhance
13:45–14:10 protection against the risks of LNG management the monetization of natural gas
Matthew Chalk, Operations Director, Gabriele Noli, AIM Sector Manager, D’Appolonia— Albert van Wyk, Business Planning Manager, ORYX GTL
Solent Composite Systems Ltd RINA Group
Session 6 An inherent risk approach for the cryogenic Recent development status of seamless pipe Emerson optimized NGL truck loading solution
14:20–14:45 risk assessment for natural gas industries Shardula Nogaja, Business Development and Industry
Yves Dagba, Loss Prevention and Environment Engineer, Young June Park, Principal Engineer, R&D, ILJIN Steel Marketing Manager for Asia Pacific (Oil and Gas),
SAIPEM SA Emerson Process Management
Closing Remarks Closing remarks Closing remarks Closing remarks
14:45–14:50
14:50–16:00 Networking Reception Networking Reception Networking Reception

GYEONGHUIGUNG PALACE

During the latter half of the Joseon period, Gyeonghuigung served as the secondary palace for the king. Situated on the west side of Seoul, it was also called Seogwol, literally meaning “a
palace of the west.” The secondary palace was the palace where the King moved to in times of emergency.
From In-Jo to Cheol-Jong, about ten kings from the Joseon dynasty stayed at Gyeonghuigung. This palace was built using the slanted geography of the surrounding mountain. It boasts
traditional beauty in its architecture and a lot of historical significance.

Thank you for attending the 27th edition of Gastech this week in South Korea.
We hope that you enjoyed your stay, learned something new and commenced valuable business relationships.
Mark your calendar: the next Gastech takes place October 2015 in Singapore!

Gastech Conference Newspaper Thursday, 27 March 2014  7

Small component, big impact
Why electrical terminal headers are key to upholding pressure vessel integrity
Korea is not only the world’s second
largest importer of LNG; its ship builders
clearly dominate the LNG vessel market.
Since 2010, 82% of all orders for carriers
have been occupied by Korean companies.
After 27 ship orders in 2012, orders rose
by more than 50% in 2013, and the outlook
remains bright as the global demand for gas
continues to outgrow the supply.
Prelude, the world’s largest floating LNG
facility, has just been set to water in Korea.
Built at Samsung Heavy Industries’ Geoje
8  Thursday, 27 March 2014
Island ship yards, the pumps and expanders
of the Prelude are designed to operate com-
pletely immersed in cryogenic liquids. This
calls for a commitment to safety and quality
that embraces all related components.
Korea is showing this commitment: the
examination of the requirements regarding
the safety and reliability of LNG-related
equipment has begun. The National Assem-
bly is working on a bill to reinforce the
safety of terminals. Recent leakage acci-
dents in LNG facilities additionally alerted
Gastech Conference Newspaper
public Korean enterprises to also re-evalu-
ate the safety standards.
“The success of LNG transport and stor-
age depends on the reliability of all safety-
related components—even the small ones,”
said Thomas Fink, the general manager of
Schott’s Nuclear Safety Division. “Schott
has been a partner to the LNG industry
since 1985, supplying the safest and most
proven electrical terminal headers for on-
and offshore LNG applications. Our exper-
tise in hermetic sealing technology goes
back to 1939.”
QUALITY OF TERMINAL
HEADERS IS CRITICAL
LNG vessels can carry more than
250,000 cubic meters of LNG inside their
tanks. To unload the gas, each of the tank’s
claddings contains powerful electric pumps,
which are completely immersed in liquefied
gas. The electrical penetration from atmo-
sphere into the cryogenic liquid is accom-
plished using specially designed electrical
feedthroughs, also called terminal headers.
Terminal headers serve as the hermetic
feedthrough for three-phase electrical
power, as well as the control and instrumen-
tation measurement signals. Their perfor-
mance and durability is critical to steadily
and safely supply LNG pumps and turbine
expanders with power. At the same time,
their seals must be strong enough to main-
tain the pressure integrity of the contain-
ment vessel. Even in case of an accident,
the sealing of the electrical connections
must remain absolutely leak tight. High
gas pressure and a temperature of –162°C
place incredibly high demands on these
components. This makes them a potential
weak point of the entire system. Choosing
components with the highest quality and
reliability is, therefore, absolutely essential.
SUPERIOR SEALING GLASS
To design and produce such explosion-
proof components, Schott relies on high-
performance materials and special seal-
ing technology. Schott Eternaloc terminal
headers are manufactured using only inor-
ganic, and therefore, non-aging materials
for the pressure boundary integrity. The
feedthroughs basically consist of only
three components: metal conductors, a
special glass sealant and a metal housing.
The pre-assembled components are heated
up to a temperature at which the special
glass melts. During the cooling process,
the metal housing contracts to a greater
extent than the glass, due to the higher
coefficient of thermal expansion. This cre-
ates a robust, compression-sealed unit for
lasting hermetic and pressure-proof sealed
terminal headers.
IMPORTANCE OF MATERIAL
CHOICE
Other sealing technologies that use
polymers or ceramics can compromise the
integrity of the seal and result in leakage
and electrical malfunction. For instance,
epoxy seals contain organic substances that
age naturally, particularly when exposed to
severe temperature fluctuations.
 An inorganic alternative is ceramic; how-
ever, this material cannot be melted directly
to metals like steel or copper. Soldering or
welding is required that often tends to cor-
rode in harsh environments, starting with
surface imperfections that can develop into
fissures. Due to the lack of compression
sealing, ceramic isolators are also more
likely to develop surface cracks over time.
Such developments can impair the isolator’s
dielectric function and lower the hermeticity
of the seal following an accident.
THE SAFEST CHOICE
Schott’s feedthrough modules are proven
to provide superior resistance against
mechanical stress, high pressure, tempera-
ture cycling, extreme temperatures and ther-
mal shocks.
The use of non-aging materials also
means that Eternaloc penetrations are main-
tenance-free, thereby reducing the likeli-
hood of recalls and replacements, as well
as the total cost of ownership for owners
and operators.
Schott subjects each feedthrough for
LNG applications to one and a half times
the maximum required design pressure (up
to 390 bar) and then examines it for her-
meticity using helium mass spectrometers.
Testing for electric strength and insulation
guarantees reliable performance. Power
penetrations are designed for voltages of up
to 13,800 volts and current ratings of up to
1,500 amperes. The control and instrumen-
tation (C&I) penetrations are designed for
monitoring the necessary measurements of
the pump inside the tank.
All penetrations can be delivered with
individual dimensions based on the proj-
ect requirements. The unique design allows
for the pins to be distributed across a wider
distance. This helps to avoid cross-talk and
interferences, and ensures required clear-
ance and creepage distances for explosion-
proof components. Undisturbed transmis-
sion of motor speed counting and vibration
detection signals are crucial to ensuring a
long service life for the pumps.
CERTIFIED
Eternaloc feedthroughs are already cer-
tifiable, according to specific local regula-
tions like the Korea Occupational Safety and
Health Agency (KOSHA) for South Korea,
the international IEC standard for electri-
cal safety (IECEx) as well as the European
ATEX standard. These directives pertain to
security-relevant requirements for the use
of devices and equipment under the most
severe conditions.
PROVEN
Glass-to-metal sealing technology is
also the proven and standard technology in
other safety-critical and harsh-environment
applications: for example, glass-to-metal
sealed feedthroughs by Schott reliably pass
temperature, vibration and motor speed
measurement through the pressure vessel of
hydrogen-cooled generators.
Schott also has more than 60 years of
experience in supplying electrical penetra-
tions for use in nuclear power plants, where
the glass-to-metal sealed assemblies provide
a leak-tight pass-through for power cables
through the containment structure.
“Based on our know-how in special glass
and hermetic sealing technology, we have
supplied more than 6,000 terminal headers
to on- and offshore LNG applications world-
wide since 1985, and all of them are still per-
forming maintenance-free,” said Mr. Fink.
For more information about Schott
Eternaloc terminal headers, please visit us
at booth D510. ■

KOREAN FOLK VILLAGE

Minsok village is a living museum attraction in the city of Yongin (a satellite city of Seoul)
in the province of Gyeonggi. The village is a popular tourist destination for both Koreans and
foreigners. It is located near Everland, South Korea’s largest amusement park.
The purpose of the Korean Folk Village is to display elements of traditional Korean
life and culture. There are numerous replicas of traditional Korean houses, from peasant
to landowner to yangban. The park also has a traditional street market, restaurant, and
showcases of woodworking and metalworking techniques. There are performances of
traditional dances, equestrian skills, marriage ceremonies and recreational activities.
The village was used as filming location for the Munhwa Broadcasting Corporation
television drama “Moon Embracing the Sun.”

Gastech Conference Newspaper Thursday, 27 March 2014  9

Improve vessel efficiency with energy management
Norgas is an integrated shipping com-
pany involved in the global transportation
of petrochemical gases, LPG, chemicals
and LNG using its fleet of fully refriger-
ated gas carriers. The company has the
world’s largest small-scale LNG fleet.
Norgas (first known as Norwegian Gas
Carriers) was established in 1982 as the
chartering and marketing entity for a coop-
erative pool of 20 LPG carriers, belong-
ing to five separate owners. I.M. Skaugen
gradually became the largest shareholder,
and, after merging with two of the most
influential of these five, became an owner
and operator of liquid petroleum gas carri-
ers. Together with Norwegian ship owner
Anders Jahre, Jahre Skaugen Carriers was
established to provide bulk carrier tonnage
to service the long-term shipment of iron
ore from Brazil to Japan contracted by
the Norwegian bulk carrier pool, NBC. In
addition, in 1986, Ford Motors expressed
interest once again in doing business with
Skaugen and a new vessel design concept
was built, the Pure Car Carrier.
By the end of 2003, Norgas took deliv-
ery of six new 8,000-m³ and 10,000-m³ eth-
ylene carriers. The Norgas fleet consisted
of 19 gas carriers, and the average age had
been reduced to 16 years. Norgas formed a
revenue-sharing gas carrier pool with A.P.
Møller-Maersk, under the name Maersk
Norgas Carriers (MNGC). This pool was
later transformed into ENGC, when the
Camilla Eitzen Group replaced Møller-
Maersk as a sharing gas carrier pool. In
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System tracks crude oil
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The TouchStar CrudePac automated
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tem, developed specifically for crude
oil and water-hauling applications, has
been selected by Great Northern Mid-
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tion deliveries of crude oil in real time.
Partnering with Lunderby Trucking of
Sidney, Montana, Great Northern trans-
ports thousands of barrels of oil a day
via a mix of trucks, trains and pipelines.
The TouchStar CrudePac system for
Great Northern is in its pilot stage. Great
Northern Midstream’s management is
planning to expand the system fleet-wide.
ABB gains more gas
measurement solutions
With the acquisition of Los Gatos
Research (LGR) of Mountain View,
California, ABB has added a new line
of high-performance gas analyzers to
its measurement business. According to
ABB, LGR brings new solutions to cli-
ents in the oil and gas production, com-
bustion emissions and other industries.
LGR provides analyzers and services
for measuring trace gases and isotopes in
real time for research and environmen-
tal monitoring. Its analyzer technology,
based on off-axis integrated cavity out-
put spectroscopy (OA-ICOS), is said to
have a higher sensitivity, precision and
accuracy than traditional sampling and
laser-based technologies. ■
10  Thursday, 27 March 2014
2007, the ENGC pool ended, and Norgas
is operating its own gas carrier pool.
As a part of its fleet renewal program,
Norgas took on its first gas and chemical
carrier early in 2009. All told, three Win-
tergas ships were created as combined gas
and chemical carriers for worldwide trade.
These ships are flexible vessels, capable of
carrying LPG and petrochemical gases as
a semi-refrigerated gas carrier, as well as
chemical products of IMO Type 2 and 3.
Norgas then proceeded to build six Mul-
tigas vessels, which were delivered in 2011
and 2012. These vessels can carry LPG,
VCM, ethylene and other petrochemical
gases, along with LNG. The ships feature
two sets of manifolds at different elevations,
allowing them to call on large LNG termi-
nals and smaller LPG and petrochemical
terminals. They have been used to carry
commercial LNG cargo between large-and-
small scale LNG terminals in China.
To assist with further improvements
to vessel operational efficiency, Norgas
turned to Eniram for assistance.
OPTIMIZATION
Established by experienced seafarers
and technologists based in Finland, Eniram
has been providing the maritime industry
with energy management technology to
reduce fuel consumption and emissions
since 2005. Its solutions range from single
onboard applications to comprehensive
fleet analysis, and are used by small and
large shipping companies on vessels rang-
The Norgas Innovation, a mini-LNG carrier.
Norgas uses Eniram’s Fleet Performance Manager to keep track of its ships.
Gastech Conference Newspaper
ing from cruise liners, tankers, container
ships bulkers, ferries and LNG vessels. By
using a combination of Eniram’s products,
shipping companies can save up to 10% of
fuel per vessel and get 100% visibility into
fuel consumption.
Norgas’s initial requirements were
based around dynamic trim optimiza-
tion, but with a longer-term goal of gain-
ing deeper insight into the relative per-
formance of the entire fleet. Eniram’s
Dynamic Trimming Assistant (DTA) col-
lects information on the prevailing trim,
propulsion power and vessel movements.
It then combines this with information on
current conditions, such as weather and
speed, to calculate and display the opti-
mum trim in real time.
The Eniram Vessel Platform and
Dynamic Trimming Assistant were cho-
sen for installation onboard two Multigas
carriers.
“When we studied the available options
for improving vessel efficiency, we quickly
realized that the solution we required
needed to be fully dynamic and well inte-
grated into our vessels in order to generate
real value and measurable savings.” says
Leo Huisman, CEO of Norgas Carriers.
“The Eniram solution provides a platform
from which we can analyze and optimize
multiple aspects of vessel operations.”
ENVIRONMENTAL INITIATIVE
The first stage of the process was a
two-vessel pilot project started in 2012
under the auspices of the Singapore MPA
Green Initiative. This comprehensive
set of environmental initiatives run by
Singapore’s Maritime Port Authority is
designed to encourage the adoption of
innovative projects to reduce harmful
environmental emissions.
After successfully implementing the
solution on board two vessels, the deci-
sion was made to roll the solution out
across the remaining vessels in the fleet.
“We want to create a common platform
for measuring performance and improv-
ing vessel operational efficiency across
the fleet, and Eniram’s Fleet Performance
Manager allows us to monitor the perfor-
mance of multiple vessels at a glance.”
said Saunak Rai, Norgas’ vice president
of operations.
Indeed, the operations department at
Norgas Carriers has Eniram’s Fleet Per-
formance Manager prominently displayed
on a large screen on the wall, where every-
one can observe vessel status.
PROVEN FUEL SAVINGS
After collecting onboard performance
data for a number of months, Eniram’s
analysts were able to assess the potential
savings available to the vessels. Initial
analysis of the vessels’ sailing patterns
and performance indicated a trim savings
potential of around 2%.
“We are very pleased with the early
results,” said Norgas President Leo Huis-
man. “However, we see this as just the
beginning. We can achieve significant fur-
ther savings through utilizing the addi-
tional data and analysis provided by the
Eniram solution.”
Aside from the direct savings achieved
through optimizing vessel trim during
every part of the voyage, Norgas is look-
ing further ahead, and is utilizing the Eni-
ram solution for further analysis of fleet
performance. As part of the continuing
drive for optimum operating efficiency,
Norgas is installing coriolis mass flow
meters across the fleet to accurately mea-
sure engine fuel consumption and fuel
quality. The data gathered from the flow
meters will be stored and analyzed by the
Eniram solution, to provide more in-depth
understanding of actual vessel perfor-
mance, and allow further fine-tuning of
on board systems and processes.
In this volatile market, it is always dif-
ficult to know what lies ahead; however,
Norgas is exploring various operational
and design enhancements to continue to
improve efficiency across the fleet, and
the measurement and verification pro-
vided by the Eniram solution will con-
tinue to play a pivotal role in onboard and
onshore energy management to ensure
efficient operations. ■
Work on a loading arm connection
at an LNG terminal in Dalian, China.
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Evolving solutions for ship-to-ship
LNG transfer in tandem configuration
By VINCENT LAGARRIGUE and RICHARD HEPWORTH, Trelleborg
Moving liquefied natural gas (LNG) pro-
duction offshore has presented the oil and
gas industry with a unique and complex set
of challenges. Floating liquefied natural
gas (FLNG) facilities need to maintain the
utmost levels of safety and give increased
flexibility to LNG production while with-
standing the effects of winds, waves and
currents in the open seas.
While many of these requirements have
been met (and with FLNG now technically
and economically proven), the market is
moving toward taking FLNG further off-
shore. This means that existing components
used on current sites that are relatively
mild are not as effective. It is important to
remember too, that even the first FLNG
plants are still relatively new, so there are
still lessons to be learned.
SHIP-TO-SHIP LNG TRANSFER
Conventional transfer systems, which
have been adapted to enable LNG ship-to-
ship transfers in open water through side-
by-side configuration, might not always be
sufficient and could result in the shutdown
of the liquefaction plant in the event of bad
weather conditions, with the transfer opera-
tion having to battle the effects of wind and
currents in the open sea.
Pneumatic fenders with chain tire nets have been the traditional choice
for ship-to-ship mooring.
Tandem LNG transfer, courtesy of Saipem.
12  Thursday, 27 March 2014
With downtime at such a premium in
the LNG arena, failure is not an option, so
thought is now being given to more flex-
ible solutions, and hosed-based systems are
coming to the forefront as viable alterna-
tives, with the added benefit of potentially
being more price competitive.
The cryogenic flexible hose is a tech-
nology that has seen a rapid increase in
innovation and development to keep up
with these requirements, and help address
the stringent demands of the offshore oil
and gas industry.
However, there is a certain level of dis-
satisfaction with hoses that are presently
used in the market, and in the absence of
mature tandem offloading solutions using
floating hoses, leading manufacturers
have initiated the development of their
own systems.
TECHNICAL DETAILS
One such system is the Cryoline LNG
hose, which is suitable for use in floating
submarine configuration. This new floating
cryogenic hose is made up of several key
components, including an inner cryogenic
hose, an outer protective hose, an efficient
insulation layer and an integrated leak-
monitoring system.
Gastech Conference Newspaper
The inner cryogenic hose has been
derived from the latest developments in
composite hose technology and is best
known for its high flexibility and proven
suitability for LNG ship-to-ship transfer
in side-by-side configuration. Compos-
ite LNG hoses usually consist of multiple
unbonded, polymeric film and woven fab-
ric layers, trapped between two stainless
steel wire helices, one being internal and
one external, which give the hose its con-
voluted shape.
The film layers provide a fluid-tight
barrier to the conveyed product, while the
woven fabric layers provide the mechani-
cal strength of the hose. The number and
arrangement of multiple polymeric film
and woven fabric layers is specific to the
hose size and application.
The polymeric film and fabric materials
are compatible with the conveyed prod-
uct and the extreme operating tempera-
tures. Composite LNG hoses have already
proven their suitability for such an appli-
cation, as this technology has been vali-
dated through many full-scale static and
dynamic tests, and many offshore ship-to-
ship LNG transfers.
The outer protective hose is based on
flexible, rubber, bonded hose technol-
ogy—best known for its high resistance to
fatigue and ability to comply with harsh
environmental conditions. By protecting
the inner cryogenic hose from external
loads or aggressions, the hose also pro-
longs service life.
The annular space between the inner and
outer hoses is insulated, enabling a reduc-
tion in boil-off gas (BOG) creation during
offloading operations, and, as such, increas-
ing the efficiency of the offloading process.
Thanks to the insulation, handling opera-
tions are also easier, as no ice is formed on
top of the hose, even when full of LNG.
The hose also features an integrated
leak-monitoring system based on optical
fiber technology, to detect gas leaks in the
annular space between the inner and outer
hoses. This innovative system increases
the safety of the transfer, as it enables the
operator to make decisions on instigating
emergency procedures by monitoring data
on the offloading conditions.
In addition, the hose features an innova-
tive compact and specific connection sys-
tem, which uses end-fittings, rather than
the traditional “sections” in typical LNG
floating hoses. This ensures load transfer,
protects against leaks, and minimizes heat
loss within offloading lines.
Ship-to-ship FLNG will have between
eight and 10 sets of mooring hooks.
Trelleborg has worked closely with
Saipem in the development of this inno-
vative floating hose offloading system, by
evolving proven technologies and building
upon existing industry practices and proce-
dures. Safety, robustness and simplicity of
operations and installation have driven the
design of each component.
DEVELOPING DOCKING
AND MOORING
Before transfer can take place, there are
also elements of the docking and moor-
ing package that must be considered and
evolved for FLNG. Off-the-shelf pack-
ages are not an option in the FLNG arena,
where bespoke, integrated solutions and
customized maintenance packages should
be developed to maximize operational
efficiencies and minimize whole-life
project costs.
Similar to onshore mooring, ship-to-
ship FLNG will have between eight and
10 sets of mooring hooks, with a safe
working load capacity of 100–150 met-
ric tons, configured as double and triple
hooks. Physically, however, a compact
footprint for the mooring equipment is
necessary, as deck space is at a premium.
Under-deck reinforcement requirements
must be simplified as much as possible, and
high salt-spray ingress protection is also
essential for mechanisms such as load cells,
capstan motors and electrical control boxes.
Although the core modules of each
mooring package may be similar from proj-
ect to project, it is vital that the terminal
operator has an understanding of the indi-
vidual requirements of a specific offshore
environment, so that the overall system is
optimized for that application.
Additionally, to avoid the cost associ-
ated with downtime in the LNG arena, all
elements of the mooring package must
be available and functioning 100% of
the time.
This 100% availability requirement
does not just apply to the mechanical ele-
ments of the mooring package, such as
fenders and hooks; an FLNG mooring sys-
tem must be truly integrated. All monitor-
ing systems should be interfaced to a sin-
gle point—usually an operations control
room—to ensure that module availability
and redundancy are optimized.
HARNESSING THE RIGHT
HARDWARE
The maintenance of fenders, as well as
deployment and recovery systems, should
also be reassessed for FLNG applications.
Pneumatic fenders with chain tire nets have
been the traditional choice for ship-to-ship
mooring, but the downside of pneumatic
fenders is that they do not offer flotation
redundancy; if punctured, they will fill with
water and can run the risk of overloading
the fender deployment system when lifted.
Foam fenders can provide an attractive
alternative. They can be manufactured
without tire nets, and provide lower fric-
tional resistance, since the fender skin can
be manufactured from a low polyurethane
material, rather than from rubber.
 Foam fenders also offer similar reaction
and energy performance to pneumatic fend-
ers, and can be engineered to offer low hull
pressure. Virtually unsinkable, they provide
a practicable alternative to pneumatic fend-
ers, better suited to FLNG operations.
Pneumatic or foam, the fenders will need
to be retrieved when no LNGC berths along-
side the FLNG unit. Contrary to a small
margin of opinion, fenders should not be left
in the water, once the LNGC has departed.
Fenders left deployed will take the full
force of the waves, and, as FLNG terminals
move further offshore and experience more
extreme conditions, this will become more
of a problem.
It is essential that operators have the
deployment and retrieval systems necessary
to bring fenders back on deck for storage
when they are not in use. Given that deck
space is at a premium, this scenario neces-
sitates good forward planning at the earliest
stages of LNGC-to-FLNG unit conversion.
OFFSHORE BERTHING
CONSIDERATIONS
One primary difference between off-
shore and onshore or near-shore opera-
tions arises right at the outset, when the
LNGC approaches the FLNG unit. In
extreme offshore conditions, operators
need to take a different approach to the
standards commonly deployed in onshore
FSRU transfers.
In the case of offshore applications—
and of particular importance as condi-
tions become more extreme—fixed lasers
are no longer an appropriate solution in
measuring and recording berthing speed
and the angle of approach. Alternative
solutions are required to allow the flex-
ibility needed for open-sea berthing and
for pitch and roll.
The use of real-time kinetic (RTK)
GPS will allow the operator more reli-
able management of the LNGC’s speed
of approach, angle and distance, while
providing a similar level of accuracy to
traditional fixed lasers.
Additional environmental monitoring
and the use of predictive software in a
GPS docking tool will further assist the
pilot during this critical stage and opti-
mize the operational window.
CONCLUSION
An understanding of the complexi-
ties and individual requirements of more
extreme offshore environments is key to
successful systems development in FLNG
docking, mooring and transfer, whether
side-by-side or tandem configuration.
The latest development in cryogenic
LNG floating hoses will become a key
component in offloading systems for
future offshore FLNG projects, allow-
ing FLNG projects to be considered
for harsher conditions, without exces-
sive downtime due to offloading sys-
tem availability, and with significantly
reduced risk.
The importance of continuous uptime
and, above all, safety, does not begin and
end during transfer—before and beyond,
the performance and maintenance of
mooring systems will need to be care-
fully considered
Manufacturers will need to increas-
ingly offer a more comprehensive and
evolved portfolio to demonstrate exper-
tise in the more extreme offshore arena.
The basic toolkit may remain the same,
but the elements must evolve, and each
component—and its interrelation with
other components—must be considered
on the merits of each environment. ■

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Gastech Conference Newspaper Thursday, 27 March 2014  13

Safely producing and delivering
Angolan LNG to the world
Angola LNG’s vision is to be a reliable
and competitive supplier, a strong com-
munity partner and a role model for devel-
opment in Angola. The project provides
a solution to minimize flaring and envi-
ronmental pollution by gathering associ-
ated gas from Angola’s offshore oil fields
to provide clean and reliable energy to
customers and a return on investment for
shareholders.
The project’s first cargoes were pro-
duced, shipped and safely delivered in 2013.
PROJECT OVERVIEW
At $10 billion, the Angola LNG proj-
ect, built to create value from offshore
gas resources, is one of the largest sin-
gle investments in the Angolan oil and
gas industry.
The project is the result of a partnership
between Sonangol, Chevron, BP, Eni and
Total to gather and process gas, and sell
and deliver up to 5.2 million tons of LNG
per year to the global market.
Offering a dedicated fleet of seven LNG
vessels and three loading jetties (LNG,
liquids and compressed butane), the proj-
14  Thursday, 27 March 2014
ect’s mission is to minimize the flaring of
gas, provide clean and reliable energy to
customers and maximize return on invest-
ment. Angola LNG has built one of the
world’s most modern LNG processing
facilities, located 350 km north of Luanda
in Soyo, at the mouth of the Congo River.
This landmark project for Angola is unique
compared to other global LNG projects,
as the plant will initially be supplied with
associated gas, produced during oil field
operations. Angola LNG will, therefore,
significantly contribute to the elimination
of gas flaring in the country, allowing for
the development of offshore oil reserves
in an environmentally sustainable man-
ner. The project will provide a boost to the
development of Angola and deliver value
to its shareholders.
OPERATIONS AT ANGOLA LNG
Angola is the second-largest oil producer
in Africa. Historically associated gas has
been flared or re-injected into the reser-
voirs, but Angola LNG provides a solution
to reduce emissions and establish a new
source of clean energy.
Gastech Conference Newspaper
An extensive pipeline network of over
500 km delivers gas from offshore oil fields
to the processing and liquefaction plant at
Soyo. The Soyo plant is designed to process
1.1 billion cubic feet of natural gas per day
and has the capacity to produce 5.2 million
tons of LNG per year—plus natural gas,
propane, butane and condensate. The plant
represents an important step in the effi-
cient use of Angola’s natural resources, and
boasts a workforce that is now equipped
with expertise in every facet of LNG pro-
duction, from plant construction and com-
missioning operations to logistics.
The production process is designed
around a “two-train-in-one” reliability
concept that allows the plant to continue
operating at a reduced rate even when a
compressor is offline, resulting in high
plant availability.
Plant infrastructure includes storage
tanks for LNG, LPG and condensate, and
an LNG loading jetty able to accommodate
LNG vessels up to 315 m in length. The
plant will also supply gas to the Angolan
market to help meet local demand.
SEAMLESS DELIVERY
Angola LNG Marketing Ltd. was created
in 2013 to conduct global LNG marketing
and sales operations on behalf of the Angola
LNG project—safely delivering Angolan
LNG to the world.
Based in London, UK, Angola LNG
Marketing Ltd. is responsible for devel-
oping Angola LNG’s marketing strategy;
for negotiating sales agreements with buy-
ers; and for managing the dedicated fleet of
seven vessels that will ship LNG for deliv-
ery to customers around the world.
Angola LNG’s key priority is for safe and
reliable production and delivery of cargoes
to its customers, so that it can build a repu-
tation as a trusted global supplier of LNG.
Angola LNG is entering the market at
an exciting time. The world LNG mar-
ket is expected to remain tight over the
coming years, with very limited new
LNG capacity coming onstream. We are
delighted to have produced and shipped
our first LNG cargoes.
Global LNG demand remains centered
on Asia, with the majority of LNG imports
and the greatest growth continuing to come
from this region. Latin America and Europe
are also key target import markets.
Angola LNG’s sales strategy offers a
global reach, combined with a flexible
approach. Its uncommitted volumes and
dedicated fleet will allow Angola LNG
to target and reach world markets as
demand dictates.
A number of master sale and purchase
agreements have already been executed, and
further agreements are being negotiated.
A fleet of seven 160,000-m3 LNG ves-
sels has been chartered on a long-term
basis to transport Angola LNG cargoes to
customers around the world. At full pro-
duction, more than 70 LNG cargoes will be
delivered globally from Angola every year.
SOCIAL RESPONSIBILITY
Central to Angola LNG’s mission is to
contribute to the social and economic devel-
opment of Angola.
Angola LNG has invested significant
resources into the local community. In addi-
tion to promoting the use of local companies
and providing training and local jobs dur-
ing the construction and operation phases,
Angola LNG has contributed greatly to the
growth and development of Soyo.
Two key projects include the renovation
and expansion of the Soyo municipal hos-
pital to improve the health of the commu-
nity, and refurbishment and expansion of
the Bairro da Marinha School to develop a
more highly educated population.
Transparency and community liaison are
hallmarks of the project. Angola LNG has
run hundreds of meetings and workshops
in Luanda and Soyo to provide information
about the project, and to seek the views
of the government, local people and other
interested parties.
The establishment of an information cen-
ter in Soyo has ensured that the community
has the ability to stay in touch at all times.
Angola LNG is committed to conserva-
tion of biodiversity, and has set up a turtle
management program to protect Olive
Ridley sea turtles that migrate to the north-
ern beach of Kwanda Island each year. The
program monitors and protects threatened
nests and hatchlings to ensure the contin-
ued preservation of the species. Angola
LNG is also involved in the protection of
the Giant Sable Antelope (Palanca Negra
Gigante), a critically endangered species,
native only to the province of Malanje
in Angola. ■
 20 - 21 October 2014
The Savoy Hotel | London | UK

Building Africa’s Future, Through Business Partnerships

“The Global African Investment Summit helps Ghana and other leading
African nations to develop global investment into public-private
partnerships, I commend and commit Ghana and my Office to the
summit wholeheartedly. We welcome you all to what is the continent’s
most significant economic summit”.

John D. Mahama, President of the Republic of Ghana

CONTACT:
George Rutter Victor Cruz
Sponsorship Sales Manager Head of Strategic & Commercial Partnerships
+44 (0)20 3615 0393 +44 (0)20 3615 2989
georgerutter@tgais.com victorcruz@dmgevents.com

www.tgais.com
Nitrogen expansion cycle enhances
flexibility of small-scale LNG
By J. PAK, Cosmodyne LLC, Seal Beach, California
The abundance of natural gas from advancements in hor- to 500,000 gpd [4 million standard cubic feet per day cesses. The only practical natural gas liquefaction processes
izontal fracking technology applied to shale reservoirs has (MMscfd) to 42 MMscfd]. available for small-scale LNG plants are single-mixed-
led to historically low natural gas prices in North America. While mixed-refrigerant (MR) cycles dominate at refrigerant (SMR) cycle (FIG. 1) and the N2 expansion cycle
In addition to being a domestic energy source that is envi- world-class and medium-scale LNG plants, the reverse (FIG. 2). The processes used for world-class baseload plants
ronmentally friendlier than others (it emits up to 30% less Brayton nitrogen (N2 ) cycle (or N2 expansion cycle) has do not transfer directly to small-scale LNG plants, as the
greenhouse gas than gasoline or diesel), natural gas is now enjoyed a resurgence at small-scale LNG plants. Here, complexity of the processes and equipment makes such
much cheaper than gasoline or diesel as an energy source. the different liquefaction cycles available for small-scale cycles cost-prohibitive for small-scale LNG.
For these reasons, liquefied natural gas (LNG) is now a LNG plants, and the specific factors that contribute to the This preference for the SMR cycle over the N2 cycle,
viable replacement for diesel in many high-horsepower N2 cycle becoming the cycle of choice, are examined. The even for small-scale LNG plants, is clearly illustrated by
industries, such as drilling, mining and transportation, unique factors discussed are the effects of recent advances peakshaving plants across the US. The majority of peak-
including marine and railroad. in processes and equipment leading to improvements in shaving plants (FIG. 3)2 in the US were built in the late
This new paradigm has created excitement in the North efficiency, the use of pipeline gas as a feedgas source, cap- 1960s and 1970s using the SMR process.3 At that time,
American market, as well as around the world, for small- ital vs. operational costs, and plant loading considerations. most in the industry regarded the N2 expansion cycle as a
scale LNG plants, where gas is liquefied and transported well-established, robust and easy-to-operate technology,
via truck to different demand sources, similar to the exist- Technology selection. There are numerous processes albeit one that was not competitive with the SMR cycle
ing diesel market supply scheme. Typically, small-scale available to liquefy natural gas. The MR and cascade cycles in efficiency. However, unique factors in today’s LNG
LNG plants are defined as plants with a total liquid pro- are the most efficient processes. Both types of hydrocarbon marketplace have made the N2 cycle a process of choice
duction capacity of roughly 50,000 gallons per day (gpd) refrigeration processes allow for refrigeration loops to in many new, small-scale LNG markets in North America.
tightly match the cooling curve of a typical gas liquefac-
Single mixed-refrigerant loop tion, to achieve high refrigeration efficiency and reduce Advancement of equipment efficiency. One of
Suction Compressor Condenser energy consumption (TABLE 1).1 the factors in the resurgence of the N2 expansion cycle is
drum PIC Most of the world’s baseload LNG plants (i.e., plants the higher efficiencies achieved by both process design
Liquid
Natural gas feed CW separator producing more than 2.5 MMtpy) use an MR or a cascade and rotating equipment. The nitrogen recycle compressor
cycle, which is a testament to the efficiency of these pro- and the dual expander compressor package performance
TDC
drive N2 expansion process efficiency. In recent years, the
Cold box Liquid
separator TABLE 1. Specific power of different liquefaction processes
manufacturers of compressors and expanders have made
Expansion significant strides in improving performance.
valve
N2 Manufacturers now utilize computer-aided engineering
Process C3 /MR Cascade DMR SMR expansion
Liquid (CAE) tools, such as computational fluid dynamics (CFD)
separator Specific power
Fractionation and finite element (FE) software to optimize rotating equip-
column LIC (kW-hr/ 293 338 300 348 375
metric tons)
ment design. CFD and FE software programs have allowed
Heat
source Liquid manufacturers to bypass the traditional “trial-and-cut”
Expansion
separator approach, which requires extensive experimental tweaks.
NGL Reboiler
valve The computer-generated simulations, some of which are
even in 3D, not only provide a more accurate and system-
LNG reflux pump atic approach to design, but they also give designers better
(optional) Liquid
Expansion separator understanding and insight on flow dynamics, pressure drops
LNG to tank valve and stress loads. This allows the designers to optimize and
develop more efficient scrolls, nozzles and impellers.
FIG. 1. Flow scheme of a typical SMR process. While these computer programs are tools and not the
solution, they have allowed manufacturers to offer higher-
Nitrogen-refrigerant loop
efficiency rotating machines at lower costs. Most compres-
Compressor
sors and expanders now offer efficiencies that are much
Natural gas feed higher (sometimes greater than 10%) than units that were
CW
built in the 1960s and 1970s, during the installation of
Cold box FIG. 4. Example of a typical integrally geared centrifugal most peakshaving plants in the US.
compressor. Image courtesy of Cameron Process & In conjunction with CAE, computer-aided manufacturing
Warm Compression Systems. (CAM) processes allow engineers to manufacture compo-
Fractionation expander- CW
column compressor nents designed with CAE. For example, most impellers are
now milled from five-axis machines. This simple change in
Heat
source manufacturing has improved impeller efficiency by 2%–5%
Cold compared to old casting impellers.4 New computer-aided
NGL
Reboiler expander- CW manufacturing processes using five-axis machines and
compressor
LNG reflux pump computer numerical control (CNC) machine tools have
(optional) allowed manufacturers to machine-sculpt diffusers and
LNG to tank vanes for improved efficiency. Additionally, CAM permits
much tighter tolerance for components, resulting in mini-
FIG. 2. Flow scheme of a typical N2 expansion process. mized losses (seal, leakage rates, etc.) and higher quality.
Furthermore, the range of integrally geared centrifugal
compressors (FIG. 4) has steadily increased over the years.
Larger integrally geared compressors have permitted the
N2 cycle to be applied to larger-capacity LNG plants with
competitive efficiencies. Integrally geared centrifugal
compressors have higher efficiencies, due to interstage
cooling at each stage and the use of two or more pinion
shafts for optimal impeller speeds. These compressors
are also cheaper than API-type compressors. Due to their
compact size, they require a smaller footprint for a simple
and economical foundation.
Since the integrally geared compressors and turboex-
pander units (FIG. 5) are used for N2 service, the manu-
facturer’s standard rotating equipment can be used for the
FIG. 5. Example of a typical turboexpander used
FIG. 3. Locations of natural gas peakshaving plants in the US. for small-scale LNG plants. Image courtesy of ACD. N2 cycle. This is not the case for some SMR plants where
customized API rotating equipment is required. The manu-

16  Thursday, 27 March 2014 Gastech Conference Newspaper

facturer’s standard equipment allows for readily available
spare parts and support in addition to lower capital costs.
Integrally geared centrifugal compressors and expand-
ers are now available for the full range of small-scale LNG
plants. Improved rotating equipment efficiencies, reliability
and costs from standard manufacturer designs have put the
N2 cycle on par with the SMR process.
Pipeline gas as feedstock. The second dynamic
contributing to the N2 expansion cycle’s popularity is the
source of feed gas for natural gas liquefaction plants. In
North America, most small-scale LNG plants source their
feedstock from gas pipeline networks and midstream gas
processing plants.
The US has an extensive natural gas pipeline network.
With more than 210 gas pipeline systems and over 300,000
miles of pipeline, natural gas can be accessed at almost any
location in the Lower 48 states (FIG. 6).5 This intricate gas
pipeline network allows companies to strategically locate
LNG plants to supply their demand sources. Fortunately,
the pipeline gas is usually at high pressure and is lean, with
few heavy hydrocarbons (C4+ ).
In most cases, small-scale LNG plants need treat only
the feed gas to remove carbon dioxide (CO2), water (H2O)
and other impurities, and to liquefy the gas without remov-
ing heavy hydrocarbons. The combination of high inlet
pressure and lean feedgas composition has allowed the
N2 expansion cycle to achieve high efficiencies (specific
power in terms of kW-hr/gal produced).
The cooling curve with feedgas pressure at 1,100 psig
(FIG. 7) shows a flat natural gas heating curve that can be
matched tightly to the N2 cooling curve for efficient heat
transfer. The N2 cycle can achieve specific power values of
0.56 kW-hr/gal (350 kW-hr/metric ton) with high-pressure,
lean feed gas.
Moreover, pipeline feedgas composition frequently var-
ies. This feedgas variation can impact the overall perfor-
mance of the liquefaction plant. For the SMR cycle, the
selection of specially mixed, multi-component hydrocarbon
refrigerant must be adjusted to match the feedgas variation
to maintain high refrigeration efficiency. If the refrigerant
combination is not adjusted, then the SMR cycle’s advan-
tage over the N2 cycle may vanish.
The N2 cycle, on the other hand, is significantly more
flexible than the SMR cycle in minimizing overall effects on
efficiency and performance for ranges of ambient/cooling
water temperatures and natural gas feed compositions. The
N2 cycle uses nitrogen gas as the refrigerant; therefore, no
adjustments are required for changing feedgas composition.
This process eliminates the need for a subsystem for
the storing and mixing of several hydrocarbons to produce
a multi-component refrigerant. Furthermore, combined
variability of the recycle compressor and the two turboex-
panders allows for more flexibility to minimize the effect
on the overall liquefaction performance, with varying
feedgas composition.
Plant loading considerations. In the North Ameri-
can LNG market, plant operational flexibility is a key req-
uisite in plant design. The turndown capability of the N2
Temperature, K
pipeline draws difficult, and it can result in unnecessary determine the lifecycle cost of the plant over the project
penalties for underestimating or overestimating the amount life. In its simplest form, this is the sum of CAPEX and the
of pipeline draw. Therefore, operating the plant at a lower present value of future OPEX.
capacity can make scheduling more predictable. As an example, consider the data displayed in FIGS.
Moreover, LNG plants under gas supply contracts that 10–12, which depict the segregation of various elements of
require minimum feedgas offtake will be penalized for oper- lifecycle costs for a typical 100,000-gpd plant under project
ating in campaign mode, because the LNG plant owner must life assumptions of 10, 15 and 20 years. The model assumes
pay minimum gas costs, even when the plant is not in opera- a $310/gpd nameplate capacity starting at 50% loaded and
tion. The operating flexibility from the N2 cycle’s turndown increasing by 10%/yr until fully loaded, an IRR of 12%/
range allows an LNG plant operator to minimize operating yr, and a power cost of $60/Mwh. The liquefaction cost
costs, even during the early years of an LNG plant’s life, represents a low percentage of total lifetime cost.
when market demand is lower than the full plant capacity. As expected, the longer the project life, the more influ-
Another key consideration in plant design is scalability ential is the power cost. The lifecycle cost increases from
to grow with market demand. Even though having a large, $522/nameplate gpd at a 10-year project life to $598 at a
single train is more economical than multiple-train design, 20-year project life. More importantly, the ratio of elec-
some LNG plant owners choose to go with the multiple- tric power to liquefaction CAPEX (the main power con-
train option. The smaller multiple-train option allows for sumer) increases from 104% to 147%. Viewed another way,
a highly modularized skid-mounted design for easier and at a 20-year project life, an operator can afford to spend
cheaper installation. It even allows the plant to be relocated, an additional 1.5% on equipment to save 1% on power,
since most of the components are skid-mounted. Addition- while, at a 10-year project life, an operator can spend 1%
ally, the multiple-train design allows for a simpler, eco- to achieve the same savings.
nomical way to increase plant capacity by adding identical
trains with market growth. See PAK, page 18
As a side benefit, multiple-train design also provides
some redundancy; even with one train down, the plant
will still be able to produce some LNG. More importantly,
multiple-train design permits a company to make a smaller
initial capital investment and retain the option to invest in
increments as demand increases, reducing some of the risk
for early market pioneers. This scalability of smaller trains,
in lieu of a larger train, keeps the LNG plant capacity within
the range where the N2 expansion cycle is competitive.
Capital vs. operational cost. In selecting an appro-
priate process cycle for a small LNG plant, it is important
to understand the struggle between initial capital expenses
(CAPEX) and operating expenses (OPEX).
FIG. 9. An LNG plant with multiple trains. Photo courtesy
Each situation has individual parameters that shape the
of Clean Energy Fuels.
struggle—i.e., internal rates of return (IRRs), with project
life and power cost being the main factors. To understand
the issues influencing the economic plan, it is standard to
8%
13%
27%
CAPEX feed pretreatment
CAPEX liquefaction plant
CAPEX product management
11% and storage
CAPEX infrastructure
CAPEX other
14%
15% PV electric power
11% PV other OPEX
FIG. 10. Total lifecycle cost for a 10-year project life.
FIG. 6. Diagram of the US natural gas pipeline network.
Composite heat curves 7%
12%
310
290 30%
270
CAPEX feed pretreatment
CAPEX liquefaction plant
250 11% CAPEX product management
230 and storage

CAPEX infrastructure
expansion process meets this requirement easily. The use 210 CAPEX other
14%
of LNG as replacement fuel for diesel in high-horsepower 190 PV electric power
16% PV other OPEX
industries will take some time. Therefore, for some early- 170 11%
150
to-market developers, LNG demand during the early years
130
of the plant life may fluctuate substantially, with a consider-
110
able ramp-up period, until full production capacity can be 90 FIG. 11. Total lifecycle cost for a 15-year project life.
sold. The N2 cycle alleviates this problem by offering a wide 0.0 0.4 0.8 1.2 1.6 2.0 2.4 2.8 3.2 3.6 4.0 4.4 4.8 5.2 5.6 6.0 6.4 6.8 7.2 7.6 8.0 8.4 8.8
ΔH, MMBtu/h
turndown range with proportional power savings. FIG. 8
shows the typical turndown range of the N2 expansion cycle. FIG. 7. Heating curve for feedgas inlet pressure.
The wide turndown range is especially beneficial when
compared to plants that operate in “campaign mode,” N2 cycle turndown range 7% 12%
where the plant runs at full capacity until the storage tank
100
is filled to a set level and then shuts down. The plant is 31%
CAPEX feed pretreatment
restarted when the storage tank runs down to a low level 80 CAPEX liquefaction plant
10%
Design power, %

setpoint. In campaign mode, the plant power rate is based 60

CAPEX product management
and storage
on peak power draw, and the feed-gas supply agreement CAPEX infrastructure
40
may have a mandatory minimum offtake. 13% CAPEX other
PV electric power
Depending on the power utility and tariff schedule, there 20
17% 10% PV other OPEX
are rate adjustments or fees based on the maximum power 0
0 20 40 60 80 100
draw used during a billing cycle. These costs can be lowered Design production, %
by operating the plant in turndown mode instead of in cam-
FIG. 8. Typical N2 expansion cycle turndown
paign mode (where the plant’s full power will be reached). (production vs. power). FIG. 12. Total lifecycle cost for a 20-year project life.
Similarly, uncertain demand for LNG can make scheduling

Gastech Conference Newspaper Thursday, 27 March 2014  17

 Special contribution from Gastechnews.com
Two breakthroughs in carbon capture for gas-fired power
By ALEX FORBES
In what could become the first-ever
industrial-scale application of CCS at a gas-
fired power station, Shell announced in late
February that it had agreed to progress the
Peterhead CCS project to the next phase of
design. The project is part of the UK govern-
ment’s CCS commercialization competi-
tion, and in March 2013 was short-listed as
one of the two preferred projects bidding
for funding.
Shell intends to build a short new pipeline
from Peterhead power station and link
this into an existing offshore pipeline from
St. Fergus to the Goldeneye reservoir.
Source: Shell.
Ariel view of Goldeneye, which was a
producing gas field from 2004 to 2011.
Source: Shell.
Also in late February, Norway’s carbon
capture and storage (CCS) research centre—
the Technology Centre Mongstad (TCM)—
said it had begun a research initiative that
would help accelerate implementation of
CCS in gas-fired processes in electricity
generation and industry.
Peterhead project to begin FEED.
The Peterhead agreement—signed by Ed
Davey, the UK’s Secretary of State for
Energy and Climate Change, at Shell’s
offices in Aberdeen—marks the start of
front-end engineering and design (FEED),
which is expected to continue until 2015.
Subject to positive final investment deci-
sions by Shell and the government, and to
relevant consents and permits, the proj-
ect is expected to start up by the end of
the decade.
The project—led by Shell, with strategic
support from SSE, owners of the Peterhead
power station in Aberdeenshire—aims to
capture 10 million metric tons of carbon
dioxide over 10 years. This, says Shell,
would generate enough clean electricity to
power the equivalent of 500,000 homes.
The company claims that the individual
components of CCS technology are “well
understood, tried and tested in many areas
across the industry for several decades.”
What the Peterhead project proposes to do
is bring these elements together into a full-
chain CCS process.
Capture. The Peterhead project is based
on post-combustion capture and will use
amines to absorb the carbon dioxide. It has
already been demonstrated as feasible, hav-
ing been deployed in several small installa-
tions in the US.
Transport. Following feasibility studies
on a variety of options, Shell proposes to
build a short length of new pipeline from
Peterhead Power Station and link this into
the existing offshore pipeline from St Fergus
to the Goldeneye reservoir.
Storage. CO2 will be stored in the depleted
Goldeneye reservoir, 100 km offshore in the
outer Moray Firth, and 2.5 km beneath the
seabed. Shell says the reservoir has the “key
geological features necessary for storing car-
bon dioxide permanently: a body of high-
quality porous rock overlain by impermeable
rock to seal the CO2 in place.”
The Peterhead initiative is part of a port-
folio of major CCS projects supported by
Shell. Others include the Quest oil sands
project in Alberta, Canada, and the Gorgon
LNG project in Australia.
First large-scale MEA tests. The
TCM initiative involves the world’s first
large-scale tests of monoethanolamine
(MEA), an amine solvent used in CO2-
removal processes. TCM plans to share the
results with the global CCS community to
increase knowledge and understanding.
Speaking from the ARPA-E Energy Inno-
vation Summit in Washington DC, Olav
Falk-Pedersen, TCM’s business develop-
ment manager, said: “By thoroughly testing
the MEA solvent system in the amine plant,
and by openly sharing that information, we
stand to help technologists around the world
maximize the performance of their technol-
ogies and advance the CCS industry on a
major scale.
“Any gas-fired CCS project will be very
interested in the results of the MEA testing
at TCM. The second dash-for-gas is locking
unabated natural gas into the energy mix for
the foreseeable future. Now, the big question
is, how can the oil and gas industry adopt
CCS, to maximize future gas profits, while
simultaneously mitigating carbon emissions?
“Demonstration of CO2 capture from
natural gas-fired power plant exhaust, at
a considerable scale, is absolutely vital to
answering that question.”
Baseline solvent. MEA has been used
for many decades in the process industry,
including for production of CO2 for indus-
trial purposes. Today, the MEA process
acts as a baseline solvent, commonly used
in post-combustion carbon-capture studies
to compare the performance of proprietary
amines and other CO2-removal processes.
The TCM tests will include measurement
and evaluation of a number of parameters,
such as energy consumption, emissions and
degradation. They are expected to run until
March, after which the findings will be pub-
lished in scientific papers.
TCM claims to be the world’s largest
and most advanced facility for testing and
improving CO2 capture. The TCM comprises
two CO2-capture plants, each with a capacity
to capture some 80,000 metric tons of carbon
dioxide from a nearby refinery, or 20,000
metric tons from a gas-fired power plant. ■

PAK, continued from page 17

TABLE 2. Factors influencing the selection of project life for North American LNG plants plant. Each process has advantages and disadvantages.
Only an extensive comparison with definitive data and
Factor Details analysis can show which process is the right fit.
Demand uncertainty The "chicken-and-egg" situation among suppliers, engine manufacturers and end users The N2 cycle is now the preferred process, even at
makes the prediction of degree and the timing of demand problematic. capacities beyond the traditional limits, and it is enjoying a
Scalability Uncertainty makes scalable solutions a requirement. Plants must either adopt a train expansion renaissance in the small-scale LNG market. The N2 expan-
or be readily movable as demand outgrows supply. sion cycle, once viewed as a simple, easy-to-use process
Settled environment Most hydrocarbon processing plants exist in an environment with settled regulatory requirements, with low efficiencies, is now enjoying wider acceptance
best operating practices and logistics. Small-engine fuel supply (EFS) LNG plants are new; because of unique factors in today’s LNG market. ■
rapidly changing environments are to be expected.
“Black swans” Key examples of major, unexpected events are a sudden, large change in competitive fuel costs LITERATURE CITED
(i.e., a major drop in the price of oil), major accidents, political backlash on fracking, and technical 1
12th International Conference and Exhibition on Liquefied Natural Gas, Perth,
problems related to engine operations. Australia, May 4–7, 1998.
Obsolescence While small LNG plants have existed for some time as peakshaving plants, the sudden rise of LNG 2
US Environmental Information Administration, “US LNG Peakingshaving and
as a motor fuel has produced a new dynamic. Both the process and its components are making Import Facilities, 2008,” December 2008.
rapid advances, and this can be expected to continue. 3
Zeus Intelligence, Peakshaving Project Database, http://www.zeusintel.com.
4
Cameron, “Centrifugal compressor performance upgrades,” 2010.
Feedstock variation Most EFS LNG plants are tied to either pipeline or midstream processors. In either case, 5
US Environmental Information Administration, “US Natural Gas Pipeline
the composition of the feedstock can be expected to be time-dependent.
Network, 2009,” 2009.
6
Pak, J. and K. Knight, “Keep on Trucking,” LNG Industry, Autumn 2012.

Short project lives are commonplace for a number of
reasons (TABLE 2), and this has been favorable to the adop-
tion of modern N2 cycle plants. These plants are tradition-
ally lower in initial cost, are simpler to install, are easier to
operate, have excellent turndown characteristics, are easily
relocated and are feedstock-flexible.
In addition to the CAPEX and OPEX analyses, the ease
of operation of the N2 cycle is an important factor, because
availability of qualified personnel with LNG experience
is, and will be, limited as the LNG market grows. It is well
established that N2 cycle plants are easy to operate. The
N2 expander cycle is by far the most straightforward for
operating staff to understand, operate and troubleshoot,
because the process requires less monitoring and control
points as well as minimal operator intervention compared
to SMR plants.6
Additionally, inert, safe refrigerant eliminates the need
for purging in and out for maintenance on the refrigeration
side, making maintenance easier. Simple operation and
minimal training for personnel have made the N2 cycle an
attractive alternative choice in small-scale LNG plants.
Takeaway. There is no “one-size-fits-all” solution when
examining the different processes for a small-scale LNG
JOSEPH PAK is the director of sales and
marketing for Cosmodyne LLC, a member of the
Cryogenic Industries family of companies, in Seal
Beach, California. He joined the company in 2007
and has since been responsible for the sales and
marketing of air separation plants and small-scale
LNG plants around the world. Mr. Pak has over 24 years of
experience working for equipment manufacturers in various
positions including engineering, sales and legal. He has an MS
degree in mechanical engineering from the University of
Southern California and a JD from the University of Connecticut
School of Law. He is a registered professional engineer in
California and is admitted to the California Bar.

18  Thursday, 27 March 2014 Gastech Conference Newspaper

KOGAS, continued
from page 1
the area where LNG bunkering is most
likely to commence. These assessments
are needed to classify risk factors associ-
ated with LNG bunkering, and to establish
countermeasures for safety and environ-
mental incidents that are likely to occur.
Environmental boons and devel- exports from the United States, expects to reach a final invest- Henry Hub-indexed LNG; it requires long-term offtake security
opment plans. The environmen- ment decision (FID) in the fourth quarter of this year, according for projects like Freeport to go ahead.”
tal benefits of using LNG bunkering at
Busan New Port include a major CO 2
reduction of 93 MMtpy by 2035. These
emissions savings could yield signifi-
cant revenues, if CO2 prices rise, Kidong
noted. Also, using LNG will minimize the
risk of an oil spill.
The Busan port could also serve as a
baseline for an arctic passage between
Northeast Asia and Europe. The Arctic
Sea should be adopted as an ECA for
environmental protection, and clean fuels,
such as LNG, should be adopted to protect
the Arctic Sea environment, Kidong said.
KOGAS’ future plans include an LNG
bunkering feasibility study along the North
American coastline, with Korean shipping
companies. A detailed action plan will be
developed after the first feasibility study
is completed. The study results will be
incorporated into the Korean government’s
basic port plan and will also be used to
encourage the construction of more LNG-
fueled ships in Korea.
KOGAS also aims to establish a long-
term, LNG-fueled ship and bunkering
roadmap with the Korean government,
while securing international cooperation
with European, Chinese and Japanese
stakeholders for LNG-fueled ships and
LNG bunkering operations, Kidong said. ■
Freeport LNG to begin
construction this year
By ALEX FORBES
Freeport LNG, one of numerous projects proposed for LNG “a bigger driver is the appetite of Asian and other customers for
to CEO Michael Smith. That would make it one of very few likely Not only does the project have offtake agreements for its out-
to pass this important milestone in 2014; another likely contender put, financing arrangements are in place and just waiting for a
is Cameron LNG. positive FID before being finalised. So, all the required elements
Meanwhile, the US Department of Energy (DoE) announced seem to be lined up for construction to begin before year-end. The
on Monday that it had given conditional approval to yet another first two trains will constitute the first phase, with a third train
project to export LNG worldwide—the Jordan Cove project in being added later.
Oregon, on the West Coast. The DoE approval for Jordan Cove, allowing exports to coun-
In a presentation at BP’s stand at Gastech on Tuesday, Smith tries with which the US does not have a Free Trade Agreement
confirmed that the US Federal Energy Regulatory Commission (non-FTA), takes the total volume of gas approved for export to
(FERC) has called for the final Environmental Impact Study (EIS) non-FTA countries to 9.45 Bcfd, equivalent to 71 mtpa of LNG.
to be issued by June 16 this year. That, said Smith, should mean The next project in line for a non-FTA licence determination
that the project gets full FERC approval by September or October, is Oregon LNG, also on the West Coast, followed by Cheniere
clearing the way for FID in the fourth quarter. Energy for Corpus Christi and Excelerate for the Lavaca Bay
BP has signed a liquefaction tolling agreement (LTA) covering floating LNG (FLNG) project. ■
the full 4.4-mtpa output from the project’s second train, joining
Chubu Electric and Osaka Gas as tollers from the first two trains.
BP’s Head of LNG Origination for Asia Pacific, Alastair
Smith, confirmed to Gastech News that Freeport would issue
a Notice to Proceed with construction to the engineering con-
tractors, soon after the FID has been taken: “The engineering,
procurement and construction (EPC) contract was signed last
December with CB&I and Zachry Industrial. The first train would
then come onstream in either the second or third quarter of 2018.
“Our offtake rights start when train two becomes operational,
six to nine months later. The LNG will go into the BP portfolio,
and we’ll do a mixture of keeping it in our portfolio and also
using it to support sales to customers, generally on a Henry
Hub-indexed basis.”
Commenting on the political impact of the Russia-Ukraine cri-
sis on LNG export approvals, BP’s Smith said it had tightened the ALASTAIR SMITH, BP
focus on the need to expedite the approvals process, but, he added,

Noble Energy examines alternatives

for Cyprus LNG
By ADRIENNE BLUME
During Tuesday afternoon, Noble Energy’s commer-
cial manager of LNG, Gregory A. Beard, spoke about
the potential for development of an LNG plant onshore
Cyprus. To date, Noble Energy has found almost 40 trillion
cubic feet (Tcf) of gas resources in the Eastern Mediter-
ranean region. “This [resource] brings a new challenge to
us, as a company, to develop LNG exports, while at the
same time addressing local requirements for the security
of energy supply,” Beard noted.
Options for Cyprus LNG. The manager spoke about
the importance of bringing in experienced partners to
assist Noble in its efforts, such as Woodside Petroleum’s
recent participation in Noble’s Leviathan development
offshore Israel. A similar option for a strategic part-
nership is being considered for Cyprus. Additionally,
Noble is considering FLNG and other unconventional
technologies, to compliment more conventional project
approaches for Cyprus LNG exports.
Aphrodite field, discovered offshore Cyprus, has a gross
resource estimate of 3.6 Tcf to 6 Tcf in the A-2 well. Well
deliverability is pegged at up to 250 million cubic feet per
day (MMcfd), which will help to lower field development
costs. Cyprus’ domestic gas demand is modest and primar-
ily comprises power generation; therefore, export markets
will be required to make use of Aphrodite gas production.
The recent Cyprus financial crisis has impacted the
local economy severely, and an onshore LNG project
could help to provide long-term economic stability. It
also could create an energy hub on the island nation by
processing gas from neighboring countries, and becom- Noble will continue to work closely with the Cyprus
ing a focal point for East-to-West LNG cargo movements. government to establish the most appropriate monetization
scheme for Aphrodite’s gas resources, as the development
Supplementing the existing resource. However, is extremely important to both the company and to Cyprus.
additional resources are needed to justify a world-class Noble intends to use available conventional midstream
LNG project, with train sizes of 5 million tons per year technology for LNG production, but it will embrace newer
(MMtpy). Significant exploration potential exists in the technologies, where appropriate, to ensure a successful gas
Cyprus exclusive economic zone, and drilling activity is export opportunity for Cyprus.
slated to resume in second-half 2014. Exports from Israel Confirming this view, Noble Energy Chairman and
also could supplement a Cyprus LNG project, Beard said. CEO Charles Davidson touted FLNG as a more likely
The resource potential is high for the area, but whether option for Cyprus gas resource development, during a
this drilling will affect the commercial viability of an presentation at Gulf Publishing Company’s Eastern Medi-
onshore LNG project remains to be seen. The conceptual terranean Gas Conference in mid-March. ■
development of a Cyprus LNG project is well advanced.
Engineering studies suggest that an onshore facility could
be developed at a competitive cost. The estimated cost of
a two-train LNG terminal is $1,000/tpy, in 2012 US dol-
lars. With resources in place, such a facility would be in a
position to move into operation quickly.
Possible export routes. Cyprus LNG could be pro-
vided to Asian markets at a competitive cost, although it
remains to be determined if exports could also be sent to
Europe. First LNG production could be available from
Cyprus in 2020, and Noble is confident that an onshore
LNG development can proceed, if resources are available.
However, if additional resources do not become avail-
able in a timely fashion, then alternatives must be consid-
ered, such as FLNG, marine CNG technology or regional GREGORY A. BEARD, Noble Energy
pipeline markets in nearby countries.

Gastech Conference Newspaper Thursday, 27 March 2014  19

FLNG becoming a buoyant business
By ALEX FORBES

With four projects now in the construc-
tion phase, and a growing list of possible
future projects, Floating LNG (FLNG) is
rapidly gaining acceptance from the spon-
sors of new gas projects. At the same time,
notable trends are beginning to appear in
the selection of shipyards, equipment sup-
pliers and engineering contractors.
The big Korean shipyards are clearly
front-runners for the hulls. As for engi-
neering contractors, Technip is in “pole
position,” having been selected for the
engineering, procurement and construc-
tion contracts on the Shell-led Prelude
project, and the first of the two Petronas
projects to have reached final investment
decision (FID).
Technip CEO THIERRY PILENKO
Technip is also well-positioned for
future Shell projects, having signed a
global master agreement with Shell and
Samsung Heavy Industries in 2009 “to
design and build multiple FLNG facilities.”
Technip Chairman and CEO Thierry
Pilenko is confident that the company
has established a significant competitive
advantage in what looks like a fast-grow-
ing industry. “We are the only engineer-
ing company that can say, ‘we are doing
FLNG today successfully with two major
customers.’ Technip is the only engineer-
ing company that can bring together all
the expertise necessary for the integration
of liquefaction, the separation of liquids
and so forth, the floater and the subsea.
That’s a key differentiator and not some-
thing that is easy to imitate.”
Sea change. Pilenko agrees that there
has been a sea change in attitudes toward
FLNG over the past two years, not just
as a way of monetising gas a long way
offshore, but also as a way of controlling
risks in projects located in remote regions
with little existing onshore infrastructure.
“Because two real projects have made
progress—Prelude for Australia and the
Petronas project for Malaysia—there is
confidence that FLNG is actually feasible,”
says Pilenko, “and that there are people,
whether they are engineering contractors
or fabricators, that can make this happen.”
A key factor in the growing popular-
ity of FLNG has been the realisation that
several of the Australian onshore liquefac-
tion projects under construction are facing
major cost and schedule over-runs. This is
because they are being constructed “in an
environment where things are less con-
trolled than in a yard.”
“FLNG is now considered as an alter-
native,” said Pilenko, “not only from the
cost standpoint, but also from the sched-
ule standpoint, because the schedule is as
important as the cost.”
Project economics. Pilenko declines
to be specific about the economics of
the projects that Technip is working on,
because the industry is still in an early
stage of development, and because FLNG
economics are very dependent on the
hydrocarbon composition of particular
gas fields. “For example,” he says, “if
you produce more liquids, obviously the
economics of a project are better.” What
he is prepared to say, however, is that “in
an environment with a high cost of con-
struction, like onshore Australia, FLNG is
competitive.”
For now, the technology has yet to be
proven by an operational project. So are
there any aspects of the technology that
have yet to be worked out, such as the
offloading equipment needed to transfer
LNG from the floater to LNG carriers?
Pilenko says there has been much
discussion and detailed analysis of the
various aspects of FLNG technology.
“Offloading was one of the challenges, but
there are proven solutions that are going
to be implemented in the first units.”
Robustness, he adds, was one of the
key criteria for Prelude. “Technip has
been developing the concepts and the
technologies that need to be integrated
on those units for about ten years. This is
why Shell came to Technip first; because
we have the ability to integrate the top-
sides, the liquefaction process, and the
subsea. It was one shop, where the cli-
ent had all the expertise required—plus
almost ten years of research and devel-
opment on FLNG. That’s why we found
good common ground with companies
like Shell and Petronas.”
Pilenko also sees FLNG as “a key
enabler.” “For certain operators, the abil-
ity to propose FLNG as a solution is a dif-
ferentiator that can give them access to
resources. So, whoever masters this has a
competitive advantage.”
After more than a decade of develop-
ment, it is clear that FLNG is fast becom-
ing reality. What will be interesting to see,
as more projects enter the construction
phase, is just how popular the technol-
ogy becomes as an alternative to onshore
liquefaction. ■

Mini-LNG could slash flaring,

boost profits in Bakken
By ADRIENNE BLUME
One of Tuesday’s last presentations at Gastech dis-
cussed the implementation of mini-LNG schemes in
North America. Paul Sullivan, director of global LNG
and FLNG for WorleyParsons, and co-chairman of
Gastech, displayed aerial photos of the US at night,
to show an unusually large, bright spot over the heart
of the Bakken shale in Williston, North Dakota—a
city with a population of only 12,000. The culprit,
Sullivan explained, is gas flaring. “How can we avoid
[flaring], and are we even making attempts to avoid
it?” Sullivan posited.
An economic solution must be found, the director
said. Currently, in excess of 2 MMtpy of gas is flared in
North Dakota. Using a production figure of $3/MMBtu
at the point of flaring, this amounts to a loss of $360
MM/year in North Dakota, alone. If the gas is converted
to LNG and used in fuel substitution, instead of being
flared, then the value of this product could rise to as
much as $1 Billion/year.
The US was once the sixth-largest flarer of gas in
the world, but it is now the second-largest after Russia,
Sullivan explained. To reduce flaring and make use of
gas, small-scale LNG solutions are being examined by
PAUL SULLIVAN, WorleyParsons several large companies as a viable way to turn gas that
would otherwise be flared, into fuel.
In modular LNG manufacturing, two standard
(approximate) sizes are 84,000 gal/day and 240,000 gal/
day. A mini-LNG plant, with a capacity of 84,000 gal/
day, would suit local, integrated supplier/user require-
ments for vehicle fuel, home heating, equipment power,
etc. A plant with a capacity of 240,000 gal/day is appro-
priate for an industrial regional supplier/user, such as a
mining operation.
Producer profits with these small-scale LNG units
are nothing to scoff at; approximately $7/MMBtu can
be reaped with an 84,000-gal/day plant, and around $8/
MMBtu can be gained with a 240,000-gal/day unit. Pro-
ducer revenue increases for plants of these sizes are pegged
at $11.5 MM/year and $36.5 MM/year, respectively.
The LNG from these modular units could be trans-
ported via North Dakota’s extensive railway system to
larger cities in neighboring states, such as Minnesota.
Trucking LNG over reasonable distances can be eco-
nomic. However, with the limited market in North Dakota,
some exports into adjoining states would be required.
Rail is the best transport option in this case, Sullivan
explained. To this end, Type C refrigerated and pressur-
ized (up to 10 bar, 150 psi) tanks increase the distribution
range for LNG transportation, and are the recommended
transport vessel for this LNG delivery scenario. ■

20  Thursday, 27 March 2014 Gastech Conference Newspaper

 Special report from CoTEs
The CoTEs sessions were in full swing
Wednesday morning. A casual perusal of
the different theatres revealed audiences
filled to capacity, listening to intriguing
presentations. All CoTes sessions are in
English and translated simultaneously into
Korean, for attendees that prefer to listen on
in that language. A few of the sessions that
caught our eye in the morning CoTes stroll
are shared here.
LiBro FLNG and newly devel-
oped LNG ships. Tatsuya Hayashi Cyber security best practices
from ClassNK shared information about help with plant safety. When secur-
his company’s priority issues for an FLNG
design. ClassNK’s innovation involves the
use of a lithium bromide (LiBro)-based
absorption refrigeration system. The LiBro
unit is integrated with Air Products’ AP-N
LNG Process, and the chilled water pro-
duced in the unit is used for precooling of
the natural gas, as well as cooling of N2
refrigerant for improved LNG train effi-
ciency. Produced, chilled water is also used
for cooling of the gas turbine combustion
air, to maximize output of the gas turbine
driver. With the LiBro unit integration, the
LNG train’s overall efficiency is improved,
greater gas turbine power is made available,
and increased LNG production capacity,
with the gas turbines selected, is achieved.
The FLNG concept involves N2 as refrig-
erant for natural gas liquefaction. N2 is a
non-flammable fluid and much safer, com-
pared to mixed hydrocarbon refrigerants.
Air Products’ coil-wound heat exchanger
(CWHE) is used as the main heat exchanger
for natural gas liquefaction. Air Products’
CWHE is widely applied with its robust
design and high reliability.
The goal is to develop a small, middle-
scale LNG carrier with higher safety and
a compact topside; this is the highest pri-
ority issue, Hayashi said. From existing
bulk carriers, the target is to double hull
cape size, utilizing a conversion from an
existing tanker. Plus, using this popular
size expands the range of shipyards that
can produce the system.
LiBro technology takes waste heat from
a gas turbine and turns it into steam, and
then chilled water, he said. It is used widely
for centralized air conditioning applica-
tions onshore. The largest unit for LiBro
FLNG has been in operation since 2007.
It has a 20-year, proven operational life,
Hayashi said.
ing a power or gas processing plant, simple
firewalls will not get the job done in cyber-
land. This is according to Danny Berko
from Waterfall Security Solutions. Berko
advocates for uni-directional security gate-
ways, as they are a combination of hard-
ware and software, and fit like a firewall,
but are stronger.
“It is hardware-enforced security,” he
said. “There is a laser, a receiver and a short
fiber optic cable between the boxes. You
can send from one box to the other but noth-
ing can get back.”
Data integrity. How can you guarantee
that data gets through, if you cannot ask the
machine to send it again? Answer: There is
no guarantee.
“There is no way to send a signal back,”
Berko said. “So it is never possible to be
100% sure. But you can be 99% sure.”
Berko said that in practice, less than 5%
of users purchase high availability, which is
a concept that puts two or three systems in
parallel, and all the duplicates get resolved.
He said that 95% of customers decide that
all other protection is enough.
“Waterfall’s mission is to replace fire-
walls in industrial control system net-
works,” Berko said. “Firewalls do not move
data. They expose systems. Our mission
is to revolutionize ICS perimeter security
with ecologies that are stronger than fire-
walls. These systems should be deployed
for security, compliance and cost. Because
of the high labor costs to maintain firewalls,
gateways can save money.”
An audience member then asked Berko
about cyber protection for virtual power
plants. “The problem with virtual power
plants is they are very distributed, all over
the place,” he said. “Little wind farms
put together with solar in between, and
such. When you have distance involved, it
becomes difficult to secure.”
The cheapest way to secure these plants
is via the Internet. But that is also the most
dangerous. Virtual plant operators, who
are at higher risk or have lower risk toler-
ance, are putting in leased lines and using
their own network to connect distributed
resources, he said.
“You can use a uni-directional gateway to
solve this problem,” Berko stated. “It is more
complicated, but more secure as well.” ■
TATSUYA HAYSHI, ClassNK
Greenfield LNG
developments will be vital
Chevron and Petroleum Economist
have teamed up to run a daily survey and
prize drawing throughout Gastech 2014.
The survey comprises a single question,
each day, designed to assess delegates’
collective opinion on a range of issues,
covering developments in the global gas
industry, trends in natural gas demand,
production and pricing. All those polled
by the Chevron/Petroleum Economist
team are automatically entered into the
prize drawing to win a Samsung tablet.
Monday’s quiz results were in the
Day 3 newspaper (Wednesday edi-
tion). On Tuesday, delegates were
asked whether they believed that green-
field LNG projects would be crucial to
supplying the global LNG market by
2025. The results of that poll were over-
whelming. Of the 323 respondents, 295
(91.3%) believe that greenfield LNG
developments would, indeed, be vital.
On Wednesday, delegates were asked
whether they believe natural gas pric-
ing will continue to be regionalized
by 2020. Polling was still underway
at press time, but early indications are
that the majority of delegates surveyed
believe that regionalized gas markets
would still be in place by the end of the
decade. The final survey will be car-
ried out today. Delegates will be asked
whether they believe that China could
become the world’s largest shale gas
producer by 2035.
Monday’s winner, selected at random
from qualifying entrants, was Nizam
Ahmadi Shah abd Hakim, of Petronas.
On Tuesday, Greg Vesey, vice president,
Chevron Supply & Trading, announced
that David Power, an operations adviser
with ConocoPhillips, had won a Sam-
sung tablet.
The final prize drawing will take place
at mid-day today (Thursday) at Chev-
ron’s stand, in Hall 3, E10. To win, you
must also be present at the drawing. ■

Policy issues key to US’ first

LNG-powered marine project
By ADRIENNE BLUME
During the Wednesday morning program at Gastech,
the vice president of global marketing for ABS, William
Sember, discussed the development of guidelines and
policies for the first US project using LNG as fuel.
Key drivers of the use of LNG as fuel, Sember
explained, are Emissions Control Area (ECA) require-
ments for sulfur specifications, fuel costs, and emissions
considerations. As of Jan. 1, 2015, the maximum sulfur
content for bunker fuels is slated to drop from 1% to
0.1%. Shipping companies have several options for com-
pliance with these standards, including the use of a blend
of low-sulfur marine distillate fuels, the use of expensive
exhaust gas scrubbers onboard ships, or the use of LNG
as fuel. A number of US operators will look at the use of
LNG as ship fuel to meet emissions requirements in the
future, Sember said.
Establishing the regulatory and design
frameworks. In 2011, the first LNG-powered offshore
supply vessel (OSV) was ordered, although all of the
required regulations were not yet in place. The owner and
designer were tasked with making a design-based case
with the US Coast Guard (USCG), to show the equiva-
lency of safety for an LNG-powered OSV, compared to
other traditional OSVs.
The owner and designer proposed interim guidelines
under MSC.285(86) that included ABS guidelines for
propulsion and auxiliary systems, to provide an equivalent
level of safety. This enabled the USCG to move ahead
with a policy letter (CG-521) examining the equivalency
determination for using natural gas as bunker fuel.
There were several key issues to consider in establish-
ing the framework, including ensuring an inherently safe
configuration (i.e., double-walled pipes to the engines);
protection of machinery spaces; securing fuel storage
tanks that were not below accommodation, service or
control spaces; meeting hazardous area classifications
(Zone 0 and Zone 1); and choosing pipe-in-pipe design
for an inherently gas-safe machinery space.
US requirements for LNG bunkering are presently
under development, Sember explained. They cover a
number of considerations, from gas fuel transfer opera-
tions to crew training. There are also a number of con-
siderations for the design and execution of a successful
LNG-powered marine operation. Two key items are to
start with a proven hull design and simplify the supply
source for natural gas and power systems.
Creating a document register and applying
standards. A document register was created for the
LNG-powered bunkering project. Class societies, reg-
ulators, the designer and equipment suppliers worked
together, to establish the level of effort needed to create
and expand the document register. The register included
documents identifying plans for an independent review
by the USCG marine safety center.
Standards applied to the Type C LNG storage tanks
slated for use must meet American Society of Mechanical
Engineers (ASME) Section VIII, Div. 1 or Div. 2, Sember
noted. Additionally, electrical equipment used in hazard-
ous areas must be tested to International Electrotechnical
Commission (IEC) standard 60079 by an independent
laboratory. Sember noted that EU standards for electrical
equipment will not be accepted by the USCG. “Regula-
tions are not the same everywhere, and not everything
applies to everybody in the same way,” he said. ■

Gastech Conference Newspaper Thursday, 27 March 2014  21

GTL is ideal to reduce flaring on FPSOs
By ADRIENNE BLUME
On the afternoon of Day 3, Francesco
Criminisi, FLNG development engineer
with SBM Offshore, discussed the use of
GTL technology to reduce flaring on float-
ing, production, storage and offloading
(FPSO) vessels.
SBM has been developing FLNG ves-
sels for the past seven years. Its gas solu-
tions portfolio includes an FPSO with
GTL, a twin-hull FLNG with an internal
turret, a twin-hull FLNG with an external
turret, and turrets for large-scale FLNGs.
One of SBM’s novel concepts is a mid-
scale, twin-hull, 2-million-ton-per-year
FLNG vessel, which has a CO2 pre-cooled
dual-nitrogen cycle, and can be constructed
12 months faster than a newbuild FLNG, at
18% lower cost.
Criminisi shared the simplified scheme
for the GTL process:
•  Gas pretreatment (separation of
mercury, sulfur nickel, etc.)
•  Steam methane reforming (catalytic
reaction, low pressure, high
temperature)
Scenes from Gastech
YEMEN LNG had one of the most impressive and distinctive stands at Gastech.
Speakers on the dais shared a laugh on Wednesday.
22  Thursday, 27 March 2014
•  Fischer-Tropsch reaction (catalytic
reaction, high pressure, low
temperature).
The CompactGTL solution. SBM’s
GTL solution for FPSO flaring involves
the use of CompactGTL’s proprietary
technology. CompactGTL technology
includes automated catalyst insertion
and removal, and the corrugated metallic
catalyst inserts maximize active surface
area per channel. Also, the brazed plate-
fin reactor construction minimizes metal
content and weight. CompactGTL’s tech-
nology has been proven over the past two
years at a Petrobras-funded commercial
demonstration plant in Aracaju, Brazil.
The demonstration plant has shown 90%
availability and features a fully integrated
GTL process.
Criminisi noted that GTL is an excel-
lent gas-disposal alternative for an off-
shore application, due to flaring restric-
tions, gas reinjection needs, and other
gas infrastructure issues. The benefits of
Gastech Conference Newspaper
integrating GTL into FPSOs are numer- mooring when GTL facilities are included,
ous, and include common utilities, such while a full field development vessel must
as water treatment, N2 generation and a be permanently moored.
cooling water system. In closing, Criminisi stated, “GTL is
SBM’s green solution to associated gas.” ■
GTL applications for FPSOs. The
GTL concept can be applied to an extended
well test (EWT), which confirms well
productivity estimates, reservoir pressure
behavior and fluid properties. There is a
strong drive from regulatory and environ-
mental authorities to minimize flaring at
EWT vessels. An EWT with GTL results
in no flaring and maximizes the benefits of
EWT technology.
Another application for GTL on FPSOs
is full field development. This application
is ideal for a remote oil field with enforced
gas flaring legislation; or where no infra-
structure exists; or where gas reinjection
is not feasible, expensive or is a reservoir
risk; or where gas export is not feasible,
too expensive or has no fair gas buyer.
An EWT FPSO requires a disconnectable FRANCESCO CRIMINISI, SBM Offshore
riser and dynamic positioning for proper
MILTON DENNY and RIT DESAI are
representing Larsen and Toubro at TESTO KOREA encourages delegates
the event. to phone home.
WEIR INTERNATIONAL CO. supplies valves to the global gas industry.
XXX
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