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LNG Industry 2024.01
LNG Industry 2024.01
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CONTENTS
03 Comment
JANUARY 2024
32 Clean hulls, protect oceans
Tor Østervold, ECOsubsea, Norway, details sustainable high-tech
05 LNG news solutions to the global scourge of biofouling.
10 An evolving landscape
Kunal Sawhney, Kalkine, Australia, analyses how Russia’s invasion
of Ukraine led to an unprecedented jump in LNG prices.
32
COMMENT
H
appy New Year everyone! insight into the US LNG market in the second edition of our
We’re only a couple of weeks into 2024, North America supplement, coming out later this year.
and the awards season has already started. The It may be unknown at present what the year will hold for
Golden Globe Awards and 75th Creative Arts Emmy LNG, but that’s what LNG Industry is here for, to bring you all
Awards both took place on the same weekend (6 and 8 January). the latest updates, trends, developments, and more. And what
HBO’s The Last of Us was the biggest winner, with eight better way to start than with the January 2024 issue?
Creative Arts Emmy Awards – the most of the night – while The issue begins with a keynote from Kalkine on p.10,
The Bear, Wednesday, and The White Lotus were all tied with which analyses how Russia’s invasion of Ukraine led to an
four awards each.1 unprecedented jump in LNG prices, and how this could present
Meanwhile at the Golden Globes, the cultural phenomenon opportunities to emerging markets, such as the US.
of ‘Barbenheimer’ was still present, with both Barbie and Another key trend to keep an eye on are technology
Oppenheimer highly nominated (nine and eight awards, advancements. There have been some key trends in recent
respectively). Oppenheimer dominated this battle, winning years, such as digital twins and automation, and there is no
five awards including best drama, best actor, and best reason to believe this won’t continue. Starting on p.36, AVEVA’s
director. Nevertheless, Barbie didn’t go home empty-handed, article looks at the importance of business and digital strategy
having won the new ‘Cinematic and Box Office Achievement alignment with an operational excellence management system
Award’ and award for best original song for Billie Eilish’s in the content of a digital twin.
“What Was I Made For?’2
With 2023 having come to an end, the LNG industry can References
also hand out some ‘awards’ of its own. China reclaimed its title 1. ‘SMYTH, T., ‘All the Winners of the Creative Arts Emmys’, Vulture,
as the world’s largest LNG importer, surging to 8.22 million t in (7 January 2024), www.vulture.com/2024/01/creative-arts-emmys-
winners.html
December, the highest since January 2021 according to Kpler.3
2. ‘Winners & Nominees’, Golden Globe Awards, (2024),
Perhaps most notable is the US overtaking Qatar and https://goldenglobes.com/winners-nominees/
Australia to become the world’s largest exporter of LNG for the 3. ‘Asia’s LNG imports hit record, but supply surge keeps price muted’,
very first time in the industry’s history.4 Reuters, (5 January 2024), https://www.reuters.com/business/
The US has benefitted partly from a rising demand for energy/asias-lng-imports-hit-record-supply-surge-keeps-price-
muted-russell-2024-01-05/
natural gas globally, especially in Europe, where countries are
4. SHARMA, G., ‘U.S. Overtakes Qatar To Become The World’s Top
increasing efforts to move away from Russian gas following LNG Exporter’, Forbes, (5 January 2024), www.forbes.com/sites/
the Russia-Ukraine conflict that started in February 2022. gauravsharma/2024/01/05/us-overtakes-qatar-to-become-the-
And, with over 12 approved LNG export terminals (seven worlds-top-lng-exporter
of which are currently under construction), and another six 5. ‘U.S. LNG Export Terminals – Existing, Approved not Yet
Built, and Proposed,’ Federal Energy Regulatory Commission,
proposed, there is a good chance the US will hold on to
(26 December 2023), https://cms.ferc.gov/media/us-lng-export-
the title for the near future.5 You’ll be able to gain more terminals-existing-approved-not-yet-built-and-proposed
HULL PERFORMANCE
LNGNEWS
Greece
Panama
Capital Product Partners
Seaspan launches first L.P. delivers LNG carrier
of three LNG bunkering Axios II
vessels
C apital Product Partners L.P. (CPLP), an international
S easpan Energy has launched the first of three 7600 m3 owner of ocean-going vessels, has successfully taken
LNG bunkering vessels, the Seaspan Garibaldi, named delivery of the LNG carrier Axios II.
after Mount Garibaldi, or Nch’ḵay̓’ as the Squamish Nation Pursuant to the agreement to acquire 11 LNG carriers
has known it for thousands of years. This series of vessels provided under the umbrella agreement entered into
will be named after iconic West Coast mountains and the on 13 November 2023, the partnership took delivery
first two vessels will be delivered in 2024, with the third on 2 January 2024 of LNG carrier Axios II (174 000 m3,
vessel arriving in 2025. latest generation, two-stroke MEGA LNG carrier, built at
The Seaspan Garibaldi is set to deliver low-carbon Hyundai Heavy Industries Co., Ltd). The vessel commenced
solutions to the global market and will be based in the a one-year time charter at a market-linked rate, which
Panama region, and the second vessel is targeted to will be followed by a seven-year bareboat charter with
support the West Coast market as it develops. Bonny Gas Transport Limited, who maintain an option to
The Seaspan Garibaldi is 112.8 m in length, extend by an additional three years.
18.6 m in width, and 5 m in draft, with a design speed The vessel acquisition was financed with cash
of 13 knots. The LNG bunkering vessels are being built from the balance sheet, a new senior secured
by CIMC Sinopacific Offshore & Engineering, one of the loan facility led by ING Bank N.V. for an amount of
most experienced small scale gas carrier shipyards in the US$190 million payable in 28 equal quarterly instalments
world, having delivered more than 30 LNG gas carriers. of US$2.5 million, in addition to a balloon payment of
For the design of the LNG bunker vessels, Seaspan US$120 million payable together with the final quarterly
worked closely with the Canadian-based team at instalment in December 2030, and the deferral of
VARD Marine Inc. to incorporate emerging technologies US$92.6 million of the purchase price, in accordance with
resulting in a decrease in emissions and underwater the seller’s credit agreement included in the umbrella
noise. The design is focused on safe, efficient, and agreement, maturing on 30 June 2027.
economical refuelling of multiple ship types with Axios II is the ninth latest generation LNG carrier
an ability to transfer to and from a wide range of of the partnership and the second vessel delivery of
terminals. The design will allow the vessel to engage the fleet acquired under the umbrella agreement. The
in ship-to-ship LNG transfer and coastal and short-sea remaining nine vessels are expected to be delivered
shipping operations. between 2Q24 and 1Q27.
Canada
Cedar LNG awards EPC contract for floating LNG
production unit
T he Haisla Nation and Pembina Pipeline Corp., partners
in the development of the proposed Cedar LNG
project, have selected Samsung Heavy Industries (SHI) and
services for the project’s total LNG capacity, and with the
achievement of this milestone, the project is at an advanced
stage of planning and development, with a FID expected by
Black & Veatch to provide EPC for the design, fabrication, the end of 1Q24.
and delivery of the project’s floating LNG production unit Subject to a positive FID, onshore construction work
(FLNG), subject to a final investment decision (FID). for the project could commence as early as 2Q24, with the
Cedar LNG now has major regulatory approvals, signed delivery of the FLNG and substantial completion expected
memorandums of understanding for long-term liquefaction in 2028.
January 2024 5
LNGNEWS
Germany Republic of Congo
Energos acquires FSRUs Eni introduces gas into
from Dynagas Tango FLNG
E nergos Infrastructure, an international marine
LNG infrastructure company, majority-controlled E ni has announced the introduction of gas into
the Tango floating LNG (FLNG) facility moored in
Congolese waters.
by Apollo-managed funds and minority shareholder
New Fortress Energy Inc., has completed the acquisition Gas introduction has been achieved in record time
of two state-of-the-art FSRUs from affiliates of Dynagas. – only 12 months after the final investment decision.
The two 174 000 m3 closed-loop FSRUs, built in 2021, This is a key milestone for the Congo LNG project, which
will be renamed Energos Force and Energos Power. encompasses the adoption of new technologies and a
Earlier in 2023, the FSRUs commenced long-term strong synergy with existing producing assets. Following
charter contracts with the German Federal Ministry of completion of the commissioning phase, Tango FLNG
Economic Affairs and Climate Change. The Energos Force will produce its first LNG cargo by 1Q24, placing the
is planned to operate in the port of Stade under direction Republic of Congo on the list of LNG-producing countries.
of Deutsche Energy Terminals, while the Energos Power The Tango FLNG facility has a liquefaction capacity
is planned to operate in the port of Mukran and has been of about 1 billion m3/y and is moored alongside the
sub-chartered to Deutsche Regas. Excalibur FSU, using an innovative configuration called
With these two high-specification LNG regasification ‘split mooring’, implemented here for the first time in a
vessels added to its platform, Energos will own and floating LNG terminal.
operate 13 LNG infrastructure vessels consisting of nine Congo LNG will enhance the gas resources of
FSRUs, two FSUs, and two LNG carriers. The addition of the Marine XII permit and achieve approximately
the Energos Force and Energos Power in Europe makes 4.5 billion m3/y of plateau gas liquefaction capacity
Energos the largest owner and operator of LNG marine through phased development and with a target of zero
infrastructure vessels by wholly-owned FSRU capacity routine gas flaring. A second FLNG facility with a capacity
operating within the continent. of about 3.5 billion m3/y is currently under construction
and will begin production in 2025. The entire volume of
LNG produced will be marketed by Eni.
Singapore
First Gen awards contract
to TotalEnergies for THE LNG
LNG cargo
ROUNDUP
F irst Gen Corporation (FGEN) has concluded its
international tender for an LNG cargo by awarding a
X Ksi Lisims LNG and Shell finalise SPA
contract to TotalEnergies Gas & Power Asia Private Ltd X Delta, NNPCL, and UTM Offshore sign
(TEGPA). TEGPA will supply one LNG cargo of agreement to develop floating LNG
approximately 154 500 m3 with delivery in early
February 2024 on a delivered ex-ship (DES) basis to X Gasum’s Coral Energy makes LNG
FGEN’s wholly-owned subsidiary, First Gen Singapore Pte. delivery to Inkoo terminal
Ltd (FGEN Singapore).
The LNG cargo to be provided by TEGPA will be
delivered by an LNG carrier which will be unloaded
into the storage tanks of the BW Batangas FSRU that is Follow us on LinkedIn to read more about the articles
currently berthed at the First Gen Clean Energy Complex www.linkedin.com/showcase/lngindustry
(FGCEC) in Batangas City. The LNG will be utilised by
FGEN’s existing gas-fired power plants also located in
the FGCEC.
6 January 2024
BRIGHTER
FUTURE
CO O L E R
BY D E S I G N ®
Chart’s LNG power generation
solutions provide natural gas to hundreds
of thousands of homes. This is one way
Chart facilitates LNG as a safe, clean-burning
fuel for energy, transportation and industry.
8 January 2024
AN
EVOLVING
T
he LNG industry has witnessed remarkable growth
and transformation in recent years, with LNG
becoming an increasingly important component
of the global energy landscape. LNG, a low-emission
fossil fuel, plays a crucial role in the shift towards more
sustainable and eco-friendly energy alternatives.
As the world grapples with the challenges of climate
change and seeks cleaner energy alternatives,
understanding the emerging trends in the LNG market is
crucial for industry stakeholders, policymakers, investors,
and energy enthusiasts alike.
10
LANDSCAPE
Kunal Sawhney, Kalkine,
Australia, analyses how
Russia’s invasion of Ukraine
led to an unprecedented jump
in LNG prices.
11
and 1970s. These facilities played a pivotal role in creating The demand for LNG has been steadily rising due to its
a global LNG market. In the ensuing years, major LNG lower environmental impact than other fossil fuels, making
producers and exporters, such as Qatar and Australia, it a transitional energy source in the global shift toward
emerged as dominant players in the industry. cleaner energy options.
LNG has emerged as an integral component of the
global energy landscape, finding applications in diverse Major export and import regions in
sectors such as power generation, heating, and serving as the LNG industry
a feedstock for numerous industries.
Major exporting regions
The Middle East
The Middle East, particularly Qatar and the UAE, is a
major LNG export region. Qatar is the world’s leading LNG
exporter. As per data from the U.S. Energy Information
Administration (EIA), Qatar ranked as the sixth-largest
global producer of dry natural gas, the second-largest
exporter of LNG, and the third-largest holder of natural
gas reserves in 2021.
Asia-Pacific
Australia, Malaysia, and Indonesia are prominent LNG
exporters in the Asia-Pacific region, catering to the
growing demand in Asia, including Japan, South Korea,
and China.
North America
Figure 1. LNG has emerged as an integral component of The US is a growing LNG exporter, with a focus on
global energy landscape, finding applications in diverse supplying LNG to Asia and Europe.
sectors. Source: Krish Capital Pty Ltd.
Russia
Russia, particularly from the Arctic
region, exports LNG to various
destinations, including Asia
and Europe.
Europe
European countries, such as the UK,
Spain, and France, import LNG to
diversify their energy sources and
ensure energy security.
South America
Figure 3. Russia’s invasion of Ukraine reduced supply and led to a surge in LNG spot Countries like Argentina, Brazil,
prices. Source: REFINITIV. and Chile import LNG to meet
12 January 2024
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their energy needs and supplement domestic natural European countries reducing
gas production. dependence on Russian pipeline gas
The European Union (EU), which was primarily dependent
North America on Russian pipeline gas for its energy requirement,
While the US exports LNG, it also imports LNG to proposed a plan to reduce its energy dependence on Russia
supplement domestic supply during peak demand periods. following the war. The European Commission put forth a
provisional emergency measure aimed at expediting the
Africa adoption of renewable energy sources, broadening supply
Several African nations, such as Egypt, rely on LNG imports sources, and conserving energy in an effort to reduce
to address their increasing energy demands. reliance on Russian fossil fuels.
According to the European Council, until 2H21, EU
Recent trends and forward outlook countries sourced around 50% of their LNG requirement
of the LNG industry from Russia. After the war, the proportion of Russian gas
The global LNG market has undergone a profound began a swift descent, while other suppliers saw their
transformation due to the significant disruptions caused market shares rise. This trend gained significant momentum
by Russia’s invasion of Ukraine in February 2022. Reduced in 2022. By June 2022, Russia’s share of gas imports into
supply from Russia led to an unprecedented jump in the EU had dropped to below 20%, further decreasing to
LNG prices, altering the demand and supply dynamics of 12.9% in November. Throughout the period from
the industry. January to November 2022, the combination of Russia’s
Following the Russia-Ukraine war, some visible trends pipeline gas and LNG imports accounted for less than
are emerging in the industry. one-quarter of the EU’s total gas imports. Another 25%
came from Norway, 11.6% from Algeria. Excluding Russia,
LNG imports, primarily sourced from the US, Qatar, and
Nigeria, accounted for 25.7% of the total, as reported by the
European Commission.
In 2022, European nations increased their LNG imports
by 60% to offset the declining pipeline gas supplies from
Russia. The EU’s policies, focused on climate and energy
security, are expected to drive a gas demand reduction of at
least 40% by 2030. Despite expanding new LNG terminals,
Europe’s energy transition goals may lead to significant
unused import capacity.
14 January 2024
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Unrivaled solutions. Our unique combination of critical liquefaction equipment and proven process
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16 January 2024
COVER STORY
Keeping
it simple
Jonathan Berg, Christopher Elko,
Christoper Ott, and Colton Schrettner,
Air Products, consider liquefaction trains
for modern LNG facilities.
17
installation at site, relative to traditional stick-built 1.5 – 1.7 million tpy of LNG. High liquefier availability and
facilities. Figure 1 shows the elegance of this solution. enhanced performance is achieved over a wide operating
The AP-SMRTM liquefaction process is well-proven with range by integrating a robust, well-referenced coil wound
decades of reliable operation. This simple process is a heat exchanger. Air Products’ experience in offering fully
natural fit for facilities exporting up to a nominal dressed, modularised exchangers directly translates
into reduced field execution time – enabling shorter line of
sight to first drop. This technology is proven at both small
and mid-sized scales, with over 40 years of field operation.
This is also the basis of the company’s AP-1MTM LNG
module, a 1 – 1.4 million tpy AP-SMR modularised
product offering.
Similarly, because AP-SMR liquefaction processes
targeting approximately 1.5 million tpy of production
require a refrigerant compressor driver size in the
50 – 60 MW range, they can leverage well-referenced
frames from a variety of electric motor manufacturers.
Note that for optimal compressor aerodynamic
performance in this size range, a speed-increasing gearbox
is often employed to increase shaft speed when a
single-speed, synchronous driver is used. Additional lube
oil circulation for thermal management of the gearing
translates into a larger accessory skid. However, the
additional capital impact of the gear box and nominal
increase in package footprint actually decrease
compressor casing size while improving liquefaction cycle
efficiency – thus reducing carbon intensity for a given
Figure 1. The AP-SMR Process pairs low per-train production capacity.
equipment count with proven coil-wound heat exchanger
technology. Larger liquefaction facilities
To minimise CAPEX, simple solutions are desirable for
capacity below 1.5 million tpy. However, what is simple
at 1.5 million tpy may not necessarily remain simple
as capacity is scaled larger. In addition, larger capacity
plants will require more power and produce more
greenhouse gas (GHG) emissions. Therefore, reduced
carbon intensity will be of higher value. For example,
three AP-SMR liquefaction trains can achieve a capacity
of 4.5 million tpy, but other liquefaction technologies can
provide a more efficient option.
Simply put, precooled liquefaction processes are
thermodynamically more efficient than single refrigerant
processes. Dual mixed refrigerant (DMR) processes can
improve the overall economics of a large scale facility with
fewer trains. Shown in Figure 2, the AP-DMRTM liquefaction
process offers 10 – 12% better efficiency than the AP-SMR
liquefaction process; that means that for a given electric
driver size, the AP-DMR process produces approximately
10 – 12% more LNG than the AP-SMR process. This in turn
Figure 2. The AP-DMR Process employs integrated reduces specific power and improves project economics,
pre-cooling to improve thermal efficiency by 10 – 12% over making the AP-DMR process the cycle of choice for
AP-SMR. reducing carbon intensity.
Figure 3 depicts an optimal machinery arrangement
for the AP-DMR liquefaction process that leverages an
equal-third power distribution: three equally sized electric
motors are used to drive the entire liquefaction process.
In this configuration, one motor powers the warm mixed
refrigerant (WMR) compressor, the second motor powers
the first stage of cold MR compression, and the third
motor powers the final two stages of cold MR
compression. Note that for a nominal 4.5 – 5 million tpy
Figure 3. An ideal “equal-third” power split using three of production, each of these is the same 50 – 60 MW
identical drivers for the AP-DMR refrigeration compressors. motor used in the nominally 1.5 million tpy AP-SMR
18 January 2024
Worldwide Coverage
A global industry
requires a global
publication
20 January 2024
Tony Collins, EonCoat, USA, examines health and safety best
practices for solvent exposure.
Y
ears ago, it was common to considering research by NASA and harmful effects of solvent exposure on
hear jokes about painters others have demonstrated that the cognitive function in the short term,
being a goofy bunch, but best performing corrosion coating is but also of the health effects that
people now know that is not the case. water based and contains no may last long past the time of
The data regarding solvent exposure other solvent. exposure,” Dr Erika L. Sabbath, the
shows it is causing brain damage, with study leader, said.1
industry exposing people to solvents Research into impacts Retirees have shown problems
that do irreparable harm to them. on health 30 – 50 years after their exposure, and
One of the best attributes of LNG A Harvard School of Public Health it has now been established that
is that it is a cleaner fuel that provides study concludes sustained, high-level people who are exposed to solvents
a safer alternative. Might this group be exposure to vapours from industrial for extended periods see their IQ’s
the one to set an example by being paints and coatings, adhesives, and lowered by 10 – 15 points.
the standard for safety of the people other solvent-based products may National Institute for Health and
who work in its facilities? Part of that compromise brain function in workers Care Research reports it can affect
example might include eliminating the decades after they have left the job. more than just the painter’s own
solvents from corrosion coating. This “The Harvard study adds to the health consequences, such as
decision should be easier to make mounting evidence not only of the mesothelioma, bladder cancer,
21
scleroderma, leukemia, renal cancer, and a host of other personal to apply a typical three-coat system. Many of the typical
maladies due to toxins – multiple studies indicate genetic activities are eliminated, including workers constantly blasting
damage as well. and cleaning up, as it only requires one coat and a topcoat for
looks if desired.
Remedies EonCoat use reduces the downtime by at least half
Companies buy personal protective equipment (PPE) and insist compared to that required for a typical three-coat system. A
that everyone wears it. Unfortunately, a P100 mask is only NACE 3 surface is more than sufficient rather than white metal.
tested to stop particles 0.3 microns and larger. Volatile organic Even painting over flash rust is acceptable. The entire asset
compounds have a diameter in picometers. 1 micron is 1 million can be blasted at one time and then cleaned up one time –
picometers. Vendors talk about 99.97 efficiency of N100 masks regardless of the weather – and can be painted in a few days.
but do not advertise that P100 masks do not stop VOC’s and Lower surface prep and 15-minute dry time enables a job
many other hazardous substances at all. A mask cannot stop a speed that cannot be achieved with polymer paints.
toxin 30 picometers in diameter when the holes in the protective NASA has demonstrated that EonCoat provided more
mask is 0.3 microns – 100 000 times the size of the toxin. effective corrosion protection in a real-world environment
SINCE PPE cannot eliminate the health or physical hazards compared to all other alternatives.
of a chemical, PPE can provide a false sense of security, and EonCoat is inorganic and does not age the way polymers
should always be a last resort. do. The anticipated life of EonCoat exceeds the life of
Operators should remember the Hierarchy of Safety controls: the asset.
The net cost of eliminating the hazard is a negative
z Elimination. number. It is possible to increase profits immediately while
providing a safer workplace.
z Substitution. In addition to increasing profits while making a workforce
healthier, there are some other inherent benefits to a
z Engineering controls. chemically bonded phosphate ceramic like EonCoat. By being
water based and 100% inorganic, all the environmental, social,
z Admin controls. and governance issues regarding asset maintenance are solved.
There are no HAP’s, no VOC’s, no toxins, and an extremely low
z PPE. carbon footprint.
An additional benefit of EonCoat is the elimination of the
Notice that PPE is always intended to be the last resort, but disposal costs that are part of every polymer paint system. The
eliminating the hazard is always the best solution. For corrosion chemical formula for EonCoat is MgKPO4.6H20. This technically
coatings, it is easy to eliminate the hazard and save money in and legally is considered a fertilizer. It is a solid cement that
the process. can be disposed of anywhere that one might put a rock. This is
particularly useful if a plant is in a sensitive area, such as on
An alternative solution the waterfront.
The price of an alternative product that is water-borne and Finally, another inherent benefit for the use of EonCoat on
contains no VOC’s or toxins (such as EonCoat) costs about the LNG assets is that chemically bonded phosphate ceramics are
same as a typical three-coat system of zinc, epoxy, and urethane. the best passive fire protection mechanisms in the world. The
The labour cost difference for using an alternative is less – excess magnesium hydroxide in the coating is one of the
EonCoat, for example, utilises about half the labour that it takes ingredients in fire-fighting foam.
Conclusion
The LNG industry has a pivotal opportunity
to exemplify safety by addressing the solvent
exposure issue through transitioning to
water-based corrosion coatings. This move
not only promotes a healthier workplace, but
also presents a strong business case with its
cost-effectiveness and increased performance.
The evidence from numerous studies highlights
an urgent need for action, transcending beyond
just the painters’ realm to a broader societal
concern. The industry’s proactive response
in adopting safer practices will set a high
standard of operational excellence and ethical
responsibility, aligning with global strides
towards environmental stewardship and
human-centric practices.
Figure 1. The samples spent 18 months on the beach at Kennedy Space Center. References
EonCoat is the fourth row down on the left, with all the major coatings 1. ‘Erika Sabbath’, Harvard School of Public Health,
represented here. A formal copy of the NASA report is published and available. www.hsph.harvard.edu/profile/erika-sabbath
22 January 2024
h e n e w
T
T
he challenges surrounding passive fire protection (PFP) standards have
become increasingly complex in the evolving landscape of the oil, gas,
and petrochemical industry. Hydrocarbon processing facilities grapple
with complex fire hazards, extending to some of the harshest climates in remote
areas such as Alaska, Northern Asia, and Northern Canada.
Steel begins to contract with fluctuating temperatures, especially in bitterly
cold environments (often dipping into sub-zero conditions). This contraction
stresses the PFP coatings, leading to cracks and corrosion. In the event of a fire,
fire
PROTECTION
23
these cracks compromise the fire-resistive properties of +60 ±2.8˚C (+140 ±5˚F) for 72 hours to simulate real-world
traditional coatings, raising significant safety concerns. conditions. This cycle will be repeated 12 times before the
Moreover, with the growth of the LNG market, there is specimen is fire-tested and compared to a control specimen.
now an expectation for PFP coatings to protect against both By integrating the UL Environmental Standard 2431 test
fires and cryogenic spills, further amplifying the necessity into UL 1709 Edition 5, the standard gauges the fire
for enhanced testing standards. resistance of materials and ensures that they can withstand
the severe environmental conditions and extreme
Understanding UL 1709: From its hydrocarbon hazards.
inception to Edition 5
Introduced in 1989, UL 1709 set the benchmark for testing UL 1709 Edition 5: Raising the bar in
protection materials for structural steel against rapid rise fire protection testing
fires. PPG’s original PITT-CHAR® product is the first epoxy UL 1709 Edition 5 has plenty of similarities to Edition 4.
intumescent to clear the initial UL 1709 standard. Over Still, it is the addition of a few aggressive tests and new
the years, four iterations of the standard followed, each standards that manufacturers must put their products
fine-tuning the requirements for materials exposed to through that make it a better barometer of fire protection
high-intensity, hydrocarbon-fuelled fires. performance. Similar to UL 1709 Edition 4, UL 2431 includes
The industry realised new, more rigorous testing the following tests of individual samples:
standards that simulated real environment conditions were
needed. Products that once cleared the first four test z Ageing test.
versions began to fail when exposed to the newer, more
severe environmental conditions. z High humidity test.
In response, 2015 saw the debut of the UL 1709 Edition
5. The highlight of this edition introduces the UL 2431 z UV test with a 135-day exposure.
durability test, formulated to test the resistance of coatings
against temperature-induced stress cracks. The test employs z Salt spray test.
a stringent wet/freeze/dry cycle. A cycle consists of the
equivalent of rainfall at the rate of 18 mm/h (0.7 in./h) of z Wet freeze dry cycle.
water for 72 hours, followed by a temperature of -40 ±2.8˚C
(-40 ±2.8˚F) for 24 hours, and then a dry atmosphere of z Industrial atmosphere exposure.
24 January 2024
z Impact resistance test: This test drops a 2 in. steel ball so neglecting their maintenance can considerably
from 20 ft through a 3 in. diameter pipe, which may be jeopardise fire protection efficiency.
more challenging for cementitious-based products.
The addition of UL Environmental
z Vibration test: Reflecting the vibrations structures Standard 2431
endure, this test evaluates the coating’s resistance Several contributing factors led to the addition of UL 2431
to frequencies between 10 – 60 Hz. The sample is as part of UL 1709 Edition 5. Hydrocarbon processing
subjected to a five-minute exposure each at a 2 Hz facilities, progressively situated in diverse and extreme
increment, plus a two-hour exposure at the maximum climatic conditions, remain at the forefront of these
resonance or 60 Hz should no resonance be observed concerns. The hazards posed by temperature extremities
during the variable frequency test. leading to cracks in metal substrates and PFP coatings
cannot be overemphasised, as they become vulnerable
z Enhanced performance requirements: The permissible points for heat ingress, elevating fire risks. Likewise,
deviation from an unexposed sample’s fire performance offshore facilities grapple with the challenges of high
is now tightened from 25% to 15%. humidity, forceful winds, and even the direct impact of
waves on specific structural areas.
Test regimens and results The Köppen climate classification, which categorises
Before the launch of UL 1709 Edition 5, certification global climates into 30 distinct zones with five primary
changes from the first to the fourth edition were marginal. clusters – tropical, dry, temperate, continental, and polar –
This often meant a product certified under Edition 1 further underscores the complexity of these environmental
could still be applicable under Edition 4. However, by conditions, thus ensuring that durability tests robustly
July 2022, this leniency ceased. For a UL 1709 certification, represent these varied regions is paramount. The
products must comply with the stringent requirements establishment of UL 1709 Edition 5 serves as a versatile
of Edition 5, which includes the rigorous UL 2431 standard, with its testing rigor emulating the challenges of
environmental standards. these diverse climates, ensuring coatings that secure this
The public can access the UL directory Product iQ® to certification offer unparalleled fire protection, even in the
verify product certifications.1 It offers comprehensive most severe environments.
insights, such as the protective topcoat required for This edition also integrates insights from the tragic
UL 2431 compliance. These topcoats remain vital, 11 September 2001 World Trade Center attacks.
The significant damage to the fireproofing witnessed after severe fire hazards and cryogenic spills. It remains the
the initial crash necessitated the inclusion of tests focusing only product to have been verified by UL to endure double
on air erosion, vibration, and impact. Recognising the exposure to the demanding UL 2431 testing standards.
environmental pressures specific to various global locales This enhanced durability indicates that the coating went
– be it UV exposure, humidity fluctuations, temperature through each conditioning test and passed each after
extremes, erosive elements, or seismic activities – the exposure not once but twice (achieved without needing
updated UL 1709 standard underscores the importance of a protective topcoat) to provide owners and operators
resistance to these challenges. of LNG, oil, gas, and petrochemical facilities with a high
Beyond environmental considerations, the edition performance PFP coating.
delves into non-environmental factors, accentuating When exposed to high fire temperatures, coatings such
rigorous impact, abrasion, and chemical tests. However, it is as PPG PITT-CHAR NX expand to form a robust, insulating
pivotal to understand that these comprehensive tests do char that significantly reduces the heat-up rate of the
not encompass all facets of durability. Manufacturers protected item. The insulation maintains steel integrity and
should include further tests such as three or four-point hence buys critical time for emergency response and helps
bend testing, elongation, adhesion, shore hardness, and ensure the structures do not collapse, leading to escalation
fatigue in their evaluation regimes to gauge durability. of the event.
In many global LNG projects, PPG’s PITT-CHAR NX
The evolution of PFP coatings protective coating proves instrumental in safeguarding
As testing standards have evolved, so have the solutions. against severe fire hazards. The coating was applied to
For instance, PPG PITT-CHAR NX epoxy intumescent coating critical infrastructure, such as structural steel, foundations,
is designed specifically to meet the dual challenges of piping, and LNG cold boxes, in order to provide protection
against high-intensity jet fires in extreme conditions.
Performance evaluations revealed that PPG
PITT-CHAR NX coating maintained structural integrity
under rapid temperature escalation and kept steel
temperatures below critical thresholds, effectively
mitigating the risk of structural failure.
This new coating system embodies the industry’s
move towards materials that meet and surpass the
highest fire protection standards. With
UL 1709 Edition 5 pushing the boundaries of what we
can expect from PFP materials, products like PPG
PITT-CHAR NX set a new gold standard for protection
and durability.
Figure 3. UL 2431 fire testing of ‘mini tubes’ before and after References
environmental exposure at UL’s Northbrook facility, USA. 1. UL Product iQ®, https://productiq.ulprospector.com/en
26 January 2024
PPG PITT-CHAR® NX
Our next generation flexible fire protection
and cryogenic spill protection system
Verified by UL, PITT-CHAR NX has been proven to be extremely tough – with the
product passing double exposure conditions for UL2431, the latest internationally
recognized durability test standard as part of UL1709 Edition 5 certification.
28
Florian Krauss, Proposal Manager, and Jakob Nielsen,
Senior Sales Manager, TGE Marine, Germany, explain
why LNG is set to play an important role within the
fast-growing liquid carbon dioxide carrier sector.
29
drastically in terms of what they need to be equipped with in One of the greatest challenges is price. The business
terms of safety systems, making transportation much model for carbon capture value chains is not yet viable, so
more complicated. current projects are funded by governments. Current prices are
Many CCS projects have the timeframe of 2027 as a target estimated to range between US$120 – US$160/t CO2. If the
for the injection of CO2. There is a risk that shipyards, with total costs of CCS are at the lower end of this estimate, then
their full orderbooks, could create a bottleneck in the supply the market will grow quickly, but if at the higher end of these
chain. Usually, onshore technology scales up faster than predictions, it will take some time and there will be an
maritime. If CCS becomes a viable route for industry, the scale ongoing need for government support and incentives.
up of CCS value chains and terminals could overtake the pace Underlying many of the challenges that this burgeoning
at which the shipping industry can supply vessels. industry faces is that so much is unknown. But this will
change next year when the world’s first dedicated
vessel for carbon capture and storage is delivered as part of
the Northern Lights project (Figure 2), helping to provide
clarity and learnings to the rest of the CCS and
maritime industry.
30 January 2024
Scaling up which would enable some of the cold energy from the LNG
While the first movers have started on a small scale and will to be extracted to cool the CO2, before the former is
only voyage for a day or two maximum, the industry’s goal heated up.
is to scale up these ships as far as possible, enabling the A main challenge to such a procedure is that if very
transport of CO2 waste to be as efficient and economically large cargo tanks for CO2 are deployed, there could be a lot
viable as possible. Precedents can be seen in other maritime of boil-off gas due to the vapour created from the heat
industries, where container ships and LNG and LPG carriers ingress into the tanks. This is in contrast to the relatively
started as small but quickly grew to reap all the benefits small volume of LNG. But despite the difference in
of economies of scale. Indeed, further CCS and LCO2 carrier quantities, it would still be very advantageous to create
projects highlight an upscale in the size of vessels and CO2 an interface.
storage. Denmark’s GreenSand/Dan-Unity project in the A reliquefaction plant for cooling cargo down is very
North Sea has a storage potential of 0.5 – 1 million tpy complex and leads to large OPEX and CAPEX costs. By
of CO2 from 2025, increasing to 4 – 8 million tpy of creating an interface with the LNG fuel gas system instead,
CO2 by 2030 (Figure 3). The vessels are still under as well as gaining a less complex system, OPEX and CAPEX
development, but TGE Marine carried out a FEED study, costs would be much cheaper. Instead of deploying a system
providing conceptual designs for 12 500 m3, 22 000 m3, that consists of a number of compressors, piping and a
and 50 000 m3 CO2 carriers (Figure 4). An important control system, a simple heat exchanger or water glycol
milestone for the development of larger tanks is that these could potentially be a solution.
designs were granted an Approval in Principle (AIP) from The potential for an interface between the LNG fuel gas
American Bureau of Shipping (ABS). system and CO2 is not something that can be replicated by
The company also provided expertise on CO2 carrier the use of other propulsion fuels. Ammonia for example is
C-Type tank related storage issues for the Stella Maris CCS stored at a much higher temperature while diesel is stored
project, which aims to provide cost efficient floating CCS at an ambient temperature.
infrastructure solutions for a global market. TGE Marine is researching this area, and believes this
will be an important development for the LNG-fuelled LCO2
Deveoping storage solutions for the carrier market.
LCO2 carrier market
The CO2 storage solutions deployed onboard are developing Conclusion
to allow larger capacity LCO2 carriers. CO2 is stored in While the CCS market is only in its infancy, it will be an
medium pressure type C tanks in the Northern Lights carriers important step forward towards reaching net zero, and
(at -35˚C at 13 – 19 barg). This large window of 13 – 19 barg LNG-fuelled LCO2 carriers will play a pivotal role within it.
decreases the risk of reaching a dangerous triple point.
The other industry standard is storage at low pressure
(8 – 9 barg and -55˚C). The advantage is that because of
this lower pressure, the size of the tank can be increased.
Low pressure tanks will increasingly be seen as LCO2
carriers become larger.
As LCO2 carriers become bigger and their voyages
longer, there will be a greater need for them to fitted with
reliquefaction systems.
Furthermore, there is uncertainty about what services
terminals will provide to the carriers. There is currently
only one such terminal in the world (Northern Lights), so it
remains to be seen what the standards will be. If they are
not equipped to receive vapour return and treat it, then
ships will be required to carry out the reliquefaction
Figure 4. An artist’s impression of a 50 000 m3 LP LCO2 carrier.
themselves.
January 2024 31
Tor Østervold, ECOsubsea, Norway, details sustainable high-tech
solutions to the global scourge of biofouling.
Clean
hulls,
32
,protect
oceans
F
ouling on ships remains an uncontrolled, global concern given that one-eighth of the world’s fauna is currently
problem that has increased since the banning of the threatened with extinction.
biocide tributytin (TBT) in antifouling paints in 2008. Considering the current world-spanning flows of LNG and
While removing toxins (including cybutryne, which was the fact that, according to McKinsey, LNG demand is expected
banned at the start of 2023) is absolutely necessary to protect to grow 3.4% per annum to 2035, biofouling on LNG carriers
marine environments, it also reduces the efficacy of hull is by default a contributor to the problem.1
coatings, and by extension increases fouling rates. Hull paints To take an example, in New Zealand, the arrival of
and coating systems include heavy metals and chemical approximately 87% of known established marine non-native
compounds; moreover, they are a source of microplastics species already present in the country are likely to be from
pollution. These problems are exacerbated by conventional biofouling on vessel hulls, while research has found that 3%
open-loop hull cleaning methods using divers and brushes, of the species have been introduced through ballast water
with no collection of waste material. discharges. A species-level example is the tunicate Didemnum
More importantly, biofouling on the hulls of international vexillum, known colloquially as ‘sea vomit’, which has invaded
trading vessels is suspected to be the largest vector for the not only New Zealand but also North America and many parts
transportation of marine invasive species (and diseases) of Europe. Sea vomit is aggressively fast-growing and has a
between geographies – which is a major environmental negative effect on local biodiversity by outcompeting
33
local species. Forming a mat on the ocean floor, it smothers and long-term commitment, preventing and controlling
other flora as it grows, including high-density kelp forests, invasive alien species are attainable goals that will yield
which cover many coastlines around the world and are significant long-term benefits for people and nature.
directly responsible for hosting a flourishing biodiversity Antifouling paints can of course go part of the way to tackling
while also serving as a natural carbon sink. the problem, but as yet there are no international regulations
The knock-on effect of reducing kelp forests means sea mandating sustainable closed-loop hull cleaning.2
vomit can contribute to the collapse of local wild fisheries, Hull fouling can also markedly reduce vessel performance
cause profit loss in aquaculture, and lower the ocean’s carbon due to drag, contributing to fuel ‘leakage’ that results in an
absorption capacity, which is critical at a time of climate extra 100 million t of CO2 being emitted to the atmosphere
change triggered by the steady increase of carbon dioxide every year. This is estimated to cost the shipping industry
(CO2) in the atmosphere. Sea vomit therefore has a heavy US$20 billion annually in excess fuel costs. ECOsubsea is also
impact on biodiversity, economy, and human health and exploring a data solution that can accurately measure
welfare, and it continues to be spread into new environments. biofouling quantity and fuel leakage for each vessel. Not only
is this wholly unsustainable in terms of climate-change
Lack of data impact but is also wholly preventable through sustainable
Impacts of marine invasive species are under-reported and hull cleaning.
still not well understood, so the global impact is likely to be
even higher. No species mapping data currently exists that How the closed-loop solution works
compare water samples in ports with biofouling samples from The company’s closed-loop solution has taken 15 years to
ships, but ECOsubsea is currently working to develop a system develop and perfect, and effectively address the intertwined
based on eDNA detection methods. The situation has led to issues of invasive species, climate change, and pollution.
New Zealand, for its part, imposing regulations requiring all Hull cleaning is performed in port by a subsea remote
ships to provide evidence of biofouling management prior operated vehicle (ROV) that ‘carries’ a robotic cleaning unit
to arrival, and denying entry to dirty ships. Australia also measuring approximately 2 m high by 3 m long. The ROV is
introduced biofouling regulations in early 2023. equipped with 10 separate thrusters (propellers) that keep the
The Intergovernmental Platform on Biodiversity and unit firmly in place as the unit transverses the hull from aft to
Ecosystem Services (IPBES) notes in its 2023 Invasive Alien bow. The system can also operate in strong currents, for
Species Assessment that sufficient resources, political will, example in the Port of Singapore, that make conventional
cleaning too dangerous for divers.
The ROV is supplied with power as well as water for the
cleaning system from a mobile quayside control station
mounted on a truck trailer. The cables and hoses are bundled
together to form a 200 m flexible umbilical, enabling the
system to clean a 300 m long vessel if the station is
positioned mid-ship. To clean larger ships, the station can
simply be moved along the quayside. The ROV can also be
deployed for cleaning from a barge, if necessary.
The mobile station is self-supplied with power from an
integrated generator but can alternatively be supplied with
electricity from outlets on the quayside. As well as the
generator, the station houses a control room, workshop,
hangar for the ROV, winch/drum for the umbilical, switch
board, a crane for launch and recovery and, of course, the
effluent filtering system. Being self-powered makes it easy to
Figure 1. An ECOsubsea mobile control station alongside
the 143 535 gt NCL cruise ship Norwegian Prima (built in transport the station to where it is needed; it can simply be
2022) in the Port of Southampton in August 2023. hooked up to a truck and driven to another berth or port. This
makes the solution very scalable.
The system ‘pilot’ sits in the control room from where they
can manoeuvre the submerged ROV and steer/monitor the
cleaning unit. A technician on the dock keeps an eye on the
ROV ensuring the umbilical runs freely and does not get
snagged on fenders or other structures. The robotic cleaner
itself uses water exiting under high pressure through nozzles
installed on discs that the water causes to spin. The spinning
discs comprise the ‘brushes’ that remove marine growth as
they pass over the hull while leaving the ship’s antifouling
coating intact and unharmed.
Onboard, the ROV is a suction pump that ‘hoovers up’ all
the material removed from the hull and sends it topside
Figure 2. ECOsubsea’s remotely operated robotic hull for filtering and collection of the biomass. The filtering
cleaner at work sending fouling material to the quayside via system is staged; the first is a settling tank to catch heavy
an umbilical where it undergoes extensive filtration. bio-components such as barnacles, with the remaining
34 January 2024
biomass fed through increasingly small filters (up to six and transmit the data to the UK for analysis as to the density,
steps), leaving the effluent clean and free from biofouling size and type of organisms present. The analysis is based on
and microplastic. US Navy methodology and the result is graded from 1 to 10,
ECOsubsea is currently working on a new unit that will helping operators make appropriate scheduling plans for hull
be even more effective, designed for the busy schedules of cleaning for each vessel.
LNG carriers. The ECOsubsea solution is in use in some of the strictest
ports in the world and customers include the highest-rated
The importance of a sustainable shipowners and navies. The company is currently in
proactive cleaning regime expansion mode and by scaling up aims to make sustainable
A newbuild undergoes hull cleaning typically after one hull cleaning both affordable and available in strategically
year in operation and intermittently after that. ECOsubsea located ports worldwide. Many shipping companies, with a
highlights a misconception in the market that this is enough. clear focus on operating expenses, will opt for the cheapest
Witness this scenario; suppose a ship has a small hole in option (i.e., conventional hull cleaning), thus affordability is
its fuel tank that leaks 1% of its total fuel on every voyage. crucial in the absence of regulations mandating sustainable
Would it make sense to wait two, three, four years before hull cleaning.
repairing the hole to save 10% of the accumulated fuel The company’s stated ambition is to embrace every vessel
spend? Of course not, the hole should be closed immediately. with an IMO number (including LNG carriers), firstly through
Similarly, if an operator only performs hull cleaning once saving 10 million tpy CO2 by cleaning 1000 ships and
every two years or less, they will certainly gain a saving but ultimately saving the equivalent of Norway’s total annual CO2
this would hide the larger accumulated loss over time. Ships emissions – or 50 million t – by cleaning 5000 vessels per
should ideally be cleaned more frequently for a smaller year, thereby helping to prevent the transfer of non-native
percentage saving but avoiding the hidden loss over time. species and helping to make the shipping industry more
ECOsubsea suggests two times a year, and even up to six sustainable through reduced fuel consumption while
times a year for slow-steaming ships and after idling, perhaps saving costs.
due to port congestion, in tropical waters. The strategy will
differ according to trading profile and coating. References
The company also offers what it terms ‘Quick Covid Tests’ 1. ‘Global Gas Outlook to 2050’, McKinsey Energy Insights,
(February 2021).
using its Detector optical tool where an agent will board a 2. ‘Summary for Policymakers of the IPBES Assessment Report
ship in port and use the tool to assess the biofouling layer on Invasive Alien Species and Their Control’, IPBES, (2023).
Strategies
for the
digital
age
T
he continued rapid evolution
of digital technologies offers
both existing and future
visualisation should be used
as a framework for alignment.
operational excellence, digital
LNG operators the opportunity strategy, the digital twin, and
to take the LNG design-operate- information standards should be
optimise lifecycles to new levels defined in the FEED to ensure data
of performance, reliability, safety, sources are budgeted, selected, and
and sustainability. To be truly designed and conform though the
successful and transformative in engineering, operate, and optimise
the digital age, the LNG business lifecycles.
strategy should include both a
digital strategy and operational Starting off with
excellence. The alignment a solid digital
between these business strategy foundation and
components should be guided by alignment
a defined, asset-based information LNG companies should first start
management standard to ensure with a solid definition of their
consistency, completeness, business strategy and requisite
and alignment across the LNG key performance indicators
enterprise. A definition of the (KPIs), priorities, culture, and
LNG digital twin consisting of value-focused capabilities
data sources, modelling/analytics supported by a definition and
capabilities, and enterprise implementation of an operational
36
Craig Harclerode, AVEVA, USA, looks at enabling a new
level of performance, capability, and sustainability across
the LNG value chain.
37
excellence management system consisting of the structure, financial structure and priorities, LNG value chain
dimensions of people/culture, work processes, ‘technology’, focus and operating model, and other strategic priorities
and continuous improvement. The ‘technology elements’ such as sustainability, flexibility, agility, and reliability.
should clearly be linked to a defined digital strategy However, in review of many current LNG company
and foundational information management across the strategies gleaned from public information and personal
engineering operations, optimised with sustainability and experience, many do not include another key area –
additionally, defined in the context of a digital twin.1 operational excellence or a formalised defined digital
While this sounds logical and straight-forward, many strategy that includes an information management
LNG companies do not include or poorly align a link across standard in the context of the digital twin with
their business and digital strategies with an operational associated data/information sources, modelling/analytics,
excellence management system with an information and visualisation.
management standard that fully define the systems and Business strategy and operational excellence alignment
interoperability of the LNG digital twin,1 even as a vision. is critical for the success and growth of any organisation. It
What are the steps, process, and deliverables of a involves the synchronisation of the overall business
business strategy and the alignment of the operational strategy with the operational activities and processes to
excellence-focused and digital strategy? How are the mitigate risk and achieve maximum efficiency, productivity,
people/culture, work processes, and continuous profitability, safety and, in today’s world, environmental
improvement areas of operational excellence enabled by sustainability. Stated another way, operational excellence
technology and associated digital strategy? Why is it focuses on the execution of the business strategy and
important to fully define the ‘digital twin’ and leverage as a should ensure the necessary capabilities and resources to
tool to aid in this alignment and execution? Why is treating execute it effectively. It bridges the gap between strategic
information as a strategic asset critical and foundational to intent and operational reality, enabling an organisation to
an effective and successful execution of a business translate its vision into tangible outcomes. It defines,
strategy? Why is it critically important to leverage a ‘layers supports, and reinforces arguably the most challenging and
of analytics’ approach? critical area of a company – culture. As Peter Drucker once
These questions will be answered by first defining each stated: “Culture eats strategy for breakfast” as transforming
of these areas, followed by examples from Cameron LNG employee beliefs and behaviours is challenging. He also
and Cheniere Energy. stated “what gets measured gets managed,” further
reinforcing the importance of information management
Starting with a solid LNG business and metrics/KPI in supporting cultural alignment and
strategy and defined operational business execution.
excellence management system
A business strategy is the framework that outlines an Defining the desired LNG
organisation’s goals, objectives, and purpose for existence. company culture and the associated
There are many examples of business strategies but in the work processes
context of LNG, may include dimensions of governance People or culture refers to the shared values, beliefs,
attitudes, behaviours, and norms that
exist within an organisation. Culture
plays a vital role in driving continuous
improvement, efficiency, performance, and
the effectiveness of the business strategy.
Common attributes of culture include
leadership, innovation, empowerment,
knowledge capture, agility, accountability,
and defined and reinforcing
organisational roles and responsibilities.
Work processes are the systematic and
structured way an LNG company follows
to ensure efficiency, quality, risk
mitigation, safety, and continuous
improvement within a defined
organisational structure and associated
roles and responsibilities generally
defined in a RACI matrix: Responsible,
Accountable, Informed, Consulted.
A critical organisational structure with
RACI definition is between the
engineering, operational, and information
technology teams or ET, OT, and IT. Too
Figure 1. Alignment of business and digital strategy with operational excellence often, there is bias towards IT application
leveraging the LNG digital twin,1 enabled by a reference architecture with a focus development, control, and use at the
on integrated information management. expense of OT enablement and support
38 January 2024
SEEING IS
BELIEVING
Take a look at our ABC Certificate. It shows our circulation has been
independently verified to industry agreed standards. So our advertisers know
they’re getting what they paid for.
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leading to OT dependency vs a more balanced and effective asset-based, contextualised, self-serve views between
OT-IT-ET partnership. Key is the selection and use of an the digital twin data sources.
OT subject matter expert (SME) configurable operational
data infrastructure, as used in over 90% of the LNG z Analytics and modelling – defining the different types
production globally. of analytics and modelling with the integration and
To support culture, automated, effective work processes, evolution in ‘layers of analytics and modelling’.1
and enable effective continuous improvement, a technical
strategy guided by the digital strategy must enable many z Visualisation and decision support defined in a
areas including the following: framework of integrated and interrelated, persona-based
layers, including enterprise visualisation.
z Asset based maser data (information) management
across the various data sources or ‘systems’ of the z Cyber and data security, governance, and data sharing
LNG digital twin necessary to guide the effective generally across a hybrid (on prem, single tenant, and
contextualisation and use of all the information multi-tenant Software-as-a-Service [SaaS]) architecture.
consistently within an LNG company.
z Mobility and the enablement of the connected worker
z Capturing SME knowledge, propagation and consistent and integration of smart wireless sensors commonly
use of best practices, enabling ingenuity, accountability, referend to as Industrial Internet of Things (IIoT).
enhancing organisational performance, reliability and
reducing capital and operational expenses, energy, and z Buy, build, configure – a strategy to guide the decision
greenhouse gases (GHG). to buy solutions, build internally, and/or configure and
leverage infrastructure or platforms.
z Development and reinforcement of a proactive,
intelligent (not just data), exception-based decision Alignment with LNG digital twin: A
making organisational culture from the executive suite ‘system of systems’
to the front-line operators and SMEs necessary for As described in the LNG Industry June 2023 article
flexible and agile operations. ‘Visualising the Digital Future’,1 the LNG digital twin can
be best described in a collection of integrated systems or
z Remote connectivity for SMEs, operators, and other data sources including engineering, operations, financial,
supporting stakeholders commonly referred to as the maintenance, HR, and a recent addition, the EHS system,
‘connected worker’ that has become critically important. with integrated analytics and modelling.
These data sources need to be visualised in “single
z Growingly, increasing integration of more advanced pane of glass” visualisation capability providing provide a
analytics including artificial intelligence (AI) and complete view of the LNG enterprise and associated value
emerging technologies like ChatGPT guided by chain. The digital twin provides the framework to guide the
analytics strategy. alignment between the business and digital strategies with
the operational excellence management system.
Figure 1 illustrates this alignment around a portfolio of
solution areas the centre of which is information Illustrative use cases of business strategy,
management and ‘layers of analytics’, all defined in a OEMS, and digital strategy: Cheniere Energy
reference architecture with an ‘edge-to cloud’ Cheniere Energy is one of the largest LNG operators
implementation. globally with 45 million tpy in current production,
with current expansions increasing LNG production
Elements of an effective digital by an additional 30 million tpy for total of
strategy that supports alignment 75 million tpy between two gulf coast facilities over the
and performance next several years.
An LNG company’s digital strategy refers to the Cheniere Energy strategically and effectively leverages
comprehensive plan and use of a broad range of digital digital technologies to support operational excellence and
technologies and techniques to support the effective its defined and documented business strategy found in
execution of the LNG business strategy using an their public facing collateral and investor information.
operational excellence management system. The digital While not fully defined in public facing collateral, its
strategy should be aligned through the operational digital strategy focuses on information management and
excellence management system to the digital strategy intelligence augmented with ‘layers of analytics’ and
elements and attributes and ultimately framed in the real-time, exception, based decision support as gleaned
context of the LNG digital twin ‘systems’ and capabilities.1 from its presentation at AVEVAWorld 2022’s Oil&Gas Tract.2
Common elements of a digital strategy include the Highlights that illustrate Cheniere’s focus on alignment
ingratiation of the following areas: include the following solutions and areas of focus:
operational data management, intelligence, and real-time
z Information management standards enabling decision support.
comprehensive and foundational information Foundational to Cheniere Energy is the use of on
management necessary for interoperability and operational data infrastructure that enables the
40 January 2024
Global Publication
Figure 2. Example of Cheniere Energy’s intelligent KPI and constraint dashboard. The alignment and communication of complex
concepts across broad teams is critical.
42 January 2024
Cameron focused on the
use of wireless
technologies, such as:
z Consumer grade
mobile tables and
smartphones rated for
use in hydrocarbon
hazardous areas
with high-speed
data access enabled
using a private 4G
LTE band 48 (CBRS)
high-speed data
wide area network Figure 3. Example of LoRaWAN temperature sensors used to support the hot air recirculation
with high security. application.
This has enabled
the use of mobile digital applications such as information management standard to ensure consistency,
AVEVA Mobil Operator, shift logbook with electronic completeness, and alignment across the LNG enterprise.
work permitting, access to the CMMS system for A definition of the LNG digital twin consisting of data
workorder and spare parts information, access to the sources, modelling/analytics capabilities, and enterprise
document management system enabling field access to visualisation should be used as a framework for
1D, 2D, and 3D information. alignment. The alignment matrix, operational excellence
management system, information standards and digital
z The use of low-cost wireless sensors such as twin framework should be defined in the FEED to
temperature, position, and vibration enabled by the ensure data sources are selected and designed and
installation of a LoRaWAN wireless data infrastructure conform though the engineering, operate, and
with direct integration with the operational data optimise lifecycles.
infrastructure bypassing the control system for security Business and digital strategy alignment with the
and performance. operational excellence management system in the
context of an LNG digital twin is critical to ensure
Figure 3 is one of the several LoRaWAN examples, this success and growth of an LNG company. Alignment ensures
one for hot air recirculation (HAR) which requires a large that the organisation’s strategic intent is translated into
number of strategically placed wireless temperature tangible outcomes in the areas of culture, work processes,
sensors around their three large air-cooled heat exchanger and continuous improvement. This alignment enables LNG
(ACHE) banks. companies to drive innovation, be agile and opportunistic,
The use of more sensory data enables more advanced manage risks, lower energy and GHG emissions, and operate
applications to address areas, such as: with operational excellence.
The key areas of digital strategy include data
z HAR – determining and modelling the impact management, layers of bi-directionally integrated analytics
of weather (temperature, humidity, and wind with an associated evolutionary approach towards and
speed/direction) on the performance of the large banks including advanced analytics/AI. Additional capabilities
of ACHE. should include layers of visualisation and decision
With an increase of low-cost temperature sensors support facilitated using advanced communications
strategically mounted above and below the air-cooled technologies including wireless sensors and field devices
exchange banks, Cameron plans to monitor for HAR across a hybrid cloud that includes highly secure on
and the impact on cooling efficiency and associated prem/multi-tenant and a multi-tenant SaaS enabling secure
LNG production enabling improved decision making. industrial data sharing.
Plans are to leverage the operational data
infrastructure and integrated advanced analytics
References:
1. HARCLERODE, C., and PARKER, St., ‘Visualising the
to model and forecast the projected impact of
Digital Future’, LNG Industry Magazine , (June 2023),
weather events such as rain, high wind, and change www.lngindustry.com/magazine/lng-industry/june-2023
in humidity to provide prescriptive and proactive
2. HINDERSON, M., et al., ‘Advanced Data Analytics and
operational changes to optimise LNG production. Dashboards with AVEVA PI System at Cheniere Energy’,
AVEVAWorld 2022, https://resources.osisoft.com/
z Advanced asset performance management (AAPM) for presentations/advanced-data-analytics-and-dashboards-
key assets such as the refrigerant compressors and with-aveva-pi-system-at-cheniere-energy/
cold boxes. 3. FIELD, F., ‘Digitizing LNG Production Operations –
Actionable Insights from the Cameron LNG Digital
Summary Journey’, AVEVAWorld 2023 , https://resources.osisoft.
com/presentations/digitizing-lng-production-operations-
The alignment between these business strategy -actionable-insights-from-the-cameron-lng-digital-
components should be guided by a defined, asset-based journey/
January 2024 43
here is a widely-held belief that natural gas and LNG will aimed at reducing the challenging siting requirements
serve as a bridge to a renewable future. Recognising the associated with LNG and other cryogenic projects. The company
increasing importance of hydrogen in future energy invested in developing ASME section 8 specifications, detailed
landscapes, New Energy Development CompanyTM advocates a engineering designs, and 3D models for a full-containment
bridge strategy to cultivate the market for hydrogen with cryogenic storage system with a double cryogenic wall. To
intermediate renewable offerings. No matter what the future safeguard this intellectual property, New Energy has filed a
brings, new LNG facilities are required in the US that simplify US Patent Application (No. 17323622) for this cryogenic
siting and provide ease of operation and maintenance. storage system.
In response to this need, the company (which specialises in This article highlights the patent-pending system and
delivering pre-engineered systems, comprehensive EPC services, pre-engineered cryogenic tank design, featuring double
and investment capital for projects related to LNG, hydrogen, and stainless-steel cryogenic walls, absence of bottom penetration,
e-methane) introduced a pre-engineered cryogenic tank design and elimination of internal pumps. The focus of New Energy’s
44
vision is to create a more renewable version of renewable mid-20th Century is still in use today. This older technology
natural gas (RNG). The traditional RNG processes typically vent includes single-containment LNG tanks with earthen
carbon dioxide (CO2) into the atmosphere, but the company’s impoundments, bottom penetrations, and large thermal and
systems integrate vented CO2 with green hydrogen to produce vapour exclusion zones.
e-methane. This versatile e-methane can be converted into LNG, The US Federal Safety Standards for LNG are published in
injected into a pipeline, or seamlessly integrated into a 49 CFR 193. These safety standards apply to LNG facilities that
distribution system. serve jurisdictional gathering, distribution, and transmission
companies. 49 CFR 193 incorporates various other codes and
The company’s plant designs vs older standards by reference, such as NFPA-59A 2001 and 2006.
technology The New Energy™ system is intended to meet and exceed
Approximately 110 LNG facilities in the US have been the requirements of 49 CFR 193, NFPA-59A, and EN 1473. The
built since 1966. Much of the LNG technology from the New Energy GreenER™ LNG tank design is explicitly provided
45
with ASME-rated with double stainless-steel walls, no internal containment system is typically designed to hold a 100% liquid
pumps, and no bottom penetrations. The company uses a small design spill, and the present disclosure is configured to safely
pressure build system to move LNG in and out of its tank store and dispense cryogenic liquid gas using a double cryogenic
systems, and define full containment as a complete containment wall tank storage system without bottom penetrations and with
tank design with a double tank designed and constructed so that no internal liquid pumps needed. A GreenER cryogenic storage
the inner and outer tanks can independently contain the stored system with a large containment structure design is available
refrigerated liquid. The inner tank contains the refrigerated liquid adhering to the aspect mentioned above.
under normal operating conditions. A complete containment tank design is defined as a double
Cryogenic storage tanks are typically designed with a single tank designed and constructed so that the inner and outer tanks
containment cryogenic tank internal tank and secondary tank of can independently contain refrigerated liquid. The inner tank
carbon steel. The New Energy system is specifically designed contains the refrigerated liquid under normal operating
with double cryogenic tanks. The GreenER cryogenic full conditions. The outer tank is intended to contain the refrigerated
liquid and control the venting of vapour resulting from a
product leakage after a credible event. A complete containment
tank may be referred to as a full-integrity LNG container. For the
full containment design philosophy, pipe penetrations below
the liquid level are prohibited (NFPA 59A, 5.3.2.7; EN 1473, 6.3.3).
This GreenER storage design also includes no internal
pumps, which reduces the complexity and operations and
maintenance (O&M).
Safety enhancements include no bottom penetrations,
significantly reducing ‘design spill’ as defined by 49 CFR 193 and
NFPA-59A. If an LNG tank has bottom penetrations, then the LNG
plant design spill must accommodate all the contents of the LNG
tank. On the other hand, designs that minimise spills result in
minimal vapour and thermal exclusion zones, and if an LNG tank
has no bottom penetration, the LNG facility design spill is
Figure 1. 3D model 6 X LNG tank closeup: The low profile reduced to a 10-minute duration.
compact from a current project provides high volume
pre-manufactured storage in a small space. External pressure build system
The GreenER storage design includes an external pressure build
system for the motive force of LNG, moving LNG from tanks to
vaporisers or LNG customers at the tailgate of a plant. In this
construction, a single small external pressure build system can
supply vapour pressure to multiple full containment tanks. The
schematics in Figures 2 and 3 illustrate the operation of the
tanks in four modes and the 3D engineering model of multiple
tanks in parallel.
Mode 1 represents ‘standby mode’ with LNG in tanks and
boil-off occurring. A back-pressure regulator maintains a
pre-determined tank operating pressure. The LNG saturates at
this pressure generally from 60-250 PSIG for shop-fabricated
tanks. Mode 2 is the ‘LNG transfer mode’, representing LNG
Figure 2. 3D model platform view. Includes platforms transfer to vaporisation or offsite LNG customers. In Mode 2, the
and utility racks and provides safe and ergonomic access pressure build storage and vaporiser system externally stores a
and egress. small amount of LNG and vaporises it to provide motive pressure
in the larger storage tank. The liquid is then pressure relieved via
the top entry liquid line to the lower pressure vaporiser or
custody transfer system. In Mode 3, ‘LNG at a higher pressure’,
pressure is relieved into the full containment GreenER LNG
storage tank(s) via a top and bottom fill system. As the code
requires, the tanks are filled to 90% capacity with dual
liquid-level gauges.
New Energy’s GreenER cryogenic tank design system is
suitable for LNG, and liquified hydrogen (LH2), oxygen (LO2), and
nitrogen (LN2), and provides a safer, cost-effective, and
code-compliant tank with minimal vapour and thermal exclusion
zones on site. The site’s civil and structural work is simplified, and
O&M is minimised by eliminating internal liquid pumps.
Figure 3. 3D model ISO close-up look (NE) provides a fully New Energy developed this patented design for its projects
developed 3D model with tanks, pressure build, piping, and is currently installing or specifying these tanks in the US for
appurtenances, and platforms. LNG, LH2, LO2, and LN2 components. This family of GreenER
46 January 2024
systems meet and exceed the stringent siting requirements, as The system is suitable for LNG, LH2, LO2 and other cryogenic
well as material codes and standards in the US and Europe, and liquid applications. The systems meets and/or exceeds the
significantly reduce the cost and complexity of these systems. requirements of 49 CFR 193,
The development of LNG systems in the US (from 1966 to The company also believes that hydrogen production
today) required the development of codes and standards markets can be provided a bridge by combining with CO2 to form
beginning with the Federal Safety Standards of LNG. 49 CFR 193 e-methane as a better and more abundant source of a truly
in 1978. The company believes that similar safety regulations will renewable version of methane. This provides an opportunity to
develop in parallel with LH2. US Patent Application 17323622 utilise these systems with other cryogenic liquids such as LH2
offers a safe, simple, and code compliant solution to minimise and LO2.
exclusion zones and increase safety.
Closing
Natural gas and e-methane will be a part of the energy mix
for decades to come. This fact, coupled with resistance to new
pipelines, makes LNG plant construction to be an inevitable and
important solution.
LNG Federal Safety Codes were adopted in 1978. These
codes provide significant siting benefits for the New Energy
design. The company’s cryogenic tanks storage system provides Figure 6. LNG schematic from New Energy patent application
one of the few dramatic changes in LNG technology in decades. #17323622.
January 2024 47
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