Integrated Automation & Security Solution Improves Safety, Reliability and Efficiency at Freeport LNG

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1 Integrated Autmatin & Security Slutin Imprves Safety, Reliability and Efficiency at Freeprt LNG

2 Integrated Autmatin & Security Slutin Imprves Safety, Reliability and Efficiency at Freeprt LNG 2 Table f Cntents Intrductin...3 Backgrund...3 Autmatin Requirements...4 Security Challenges...5 Prject Scpe...6 Integrated Slutin...7 Security Strategy...8 Prject Results...10 Cnclusin...10

3 Integrated Autmatin & Security Slutin Imprves Safety, Reliability and Efficiency at Freeprt LNG 3 Intrductin In late 2004, Hneywell Prcess Slutins was selected t prvide integrated slutins fr autmatin technlgy, security and safety systems and supprt services at the new grassrts Liquefied Natural Gas (LNG) terminal built by Freeprt LNG Develpment, L.P. near Freeprt, Texas n Quintana Island. As the prime autmatin and security subcntractr at the Freeprt terminal, Hneywell assumed cmplete respnsibility fr prcurement and installatin f slutins ranging frm a plant autmatin infrastructure and field transmitters t an peratins-level Manufacturing Executin System (MES). It was als respnsible fr unifying the facility s autmatin platfrm with the latest industrial security technlgy. The fllwing white paper describes hw Hneywell s slutin enabled Freeprt LNG t ptimize the perfrmance, security and cst effectiveness f its imprt terminal assets, and in ding s, achieve a significant cmpetitive advantage in the expanding glbal LNG market. Backgrund Liquefied natural gas represents ne f the energy sectr s fastest grwing pprtunities, helping the wrld meet its ever-increasing energy needs. While LNG ffers substantial rewards, it als pses significant challenges. Tugh envirnmental and safety regulatins mandate cnstant vigilance. Grwing security cncerns threaten plant assets, persnnel and surrunding cmmunities. Vlatile markets demand agile respnse. Tight business cnditins require peratinal excellence. Due t the increasing demand fr LNG in the U.S. energy market, Freeprt LNG decided t cnstruct a grassrts LNG imprt terminal in Freeprt, Texas ne f the first such peratins in the U.S. after mre than a 20-year hiatus in LNG terminal develpment. The facility, serving the industrial and electric pwer generatin natural gas markets, is lcated n Quintana Island, abut 70 miles suth f Hustn. It is six miles frm deep water ff a 45-ft deep ship channel. The Freeprt LNG Marine Terminal can accmmdate all current and prpsed LNG carriers. Natural gas frm the Freeprt terminal is transprted thrugh a 9.7-mile pipeline t Strattn Ridge, Texas, which is a majr pint f intercnnectin with the Texas intrastate gas pipeline system.

4 Integrated Autmatin & Security Slutin Imprves Safety, Reliability and Efficiency at Freeprt LNG 4 The Freeprt LNG terminal has the ftprint and phased develpment t becme ne f the largest receiving and regasificatin facilities in the wrld, featuring a massive air-twer vaprizatin system, an unlading dck and turning basin capable f receiving 265,000-cubic-meter QMAX ships, and new vacuum-jacketed piping designed t transprt LNG frm the ship t the terminal tanks with minimal heat influx. Phase ne f the terminal cnstructin, which began in January 2005, included tw 160,000 cubic meter LNG strage tanks, vaprizatin facilities, as well as the piled unlading dck fr handling LNG vessels. The first phase f the prject allws the facility t have a send-ut capacity f 1.75 Bcf/d peaking. Phase 2 f the prject will increase the terminal s planned send-ut capacity frm 1.75 billin cubic feet per day t 4.0 Bcf/d. This phase will als invlve remval f an abandned barge dck, dredging f a secnd ship berth adjacent t the Phase 1 berth, expansin f the existing vaprizatin facilities and utility systems t accmmdate the increased terminal capacity, and cnstructin f a third LNG tank west f, and adjacent t, the existing strage tanks. Autmatin Requirements In light f increasingly cmplex LNG marketplace dynamics and evlving business and cntractual mdels, the right autmatin strategy has emerged as a critical factr in the successful design, cnstructin and peratin f LNG facilities. Autmatin systems can play a significant rle in helping t manage peratins, bth in terms f ptimizing prductin perfrmance and maintaining safety and reliability. Fr example, Advanced Prcess Cntrl (APC) allws LNG plants t react mre rapidly t frequently changing ecnmic cnditins by autmatically maintaining peratins clse t multiple perating cnstraints. Simulatin mdels develped during the design f the LNG asset can als be leveraged int peratins in a number f significant ways. By using these existing mdels, an peratr can easily see if the asset is perfrming t the highest standard pssible and can analyze the rt cause f any deviatin. A well-engineered and crrectly specified autmatin slutin will minimize prject csts, reduce time t full prductin, maintain maximum thrughput, avid unscheduled shutdwns, keep perating and maintenance csts as lw as pssible, help manage regulatry cmpliance, and supprt plant safety and security needs.

5 Integrated Autmatin & Security Slutin Imprves Safety, Reliability and Efficiency at Freeprt LNG 5 The specific requirements fr LNG terminal autmatin prjects include: Reduce prject and peratinal risks t assets and cntractual bligatins Reduce investment csts, shrten prject schedules and imprve startups Reduce variability and imprve thrughput with superir prcess cntrl Deliver expected results withut cst, schedule, and integratin prblems Reduce unplanned dwntime and ptimize asset and facility perfrmance Detect ptential prblems befre they affect prductin r safety Imprve cmpliance management thrugh cnsistent best practice prductin Ensure dependable final cntrl, day in and day ut Security Challenges In tday s uncertain glbal envirnment, maintaining a high level f security is a critical cncern fr all types f industrial peratins. LNG firms must take decisive actin t eliminate security incidents impacting peple, plant assets and the envirnment. At the same time, they must implement measures that help maintain a psitive crprate image amng the cmmunities they serve. One f the primary drivers fr heightened LNG security are new gvernment standards that reinfrce the natinal and glbal imprtance f security fr the marine transprtatin system and prvide a crucial framewrk fr ensuring the safety f maritime cmmerce and dmestic prts. In the United States, the Maritime Transprtatin Security Act (MTSA) is intended t prevent a Maritime Transprtatin Security Incident (TSI), defined as any incident resulting in a significant lss f life, envirnmental damage, transprtatin system disruptin r ecnmic disruptins t a particular area. The U.S. Cast Guard enfrces MTSA cmpliance. The LNG infrastructure is als gverned by the Internatinal Ship and Prt Facility Security Cde (ISPS Cde), which is a cmprehensive set f measures develped t enhance the security f ships and prt facilities in the wake f the 9/11 attacks in the United States. The purpse f the ISPS Cde is t prvide a standardized, cnsistent framewrk fr evaluating risk, enabling gvernments t ffset changes in threat with changes in vulnerability fr ships and prt facilities thrugh determinatin f apprpriate security levels and crrespnding security measures.

6 Integrated Autmatin & Security Slutin Imprves Safety, Reliability and Efficiency at Freeprt LNG 6 Prject Scpe Due t its majr investment in a grassrts LNG terminal, Freeprt LNG was seeking a partner fr nt just technlgy implementatin, but als t help meet its verall autmatin, security and IT integratin challenges at the facility. The cmpany hped t leverage a single cntractr fr as much scpe as pssible t minimize risk and ensure strng lifecycle supprt fr its installed assets. Freeprt LNG required a flexible, fit-fr-purpse LNG slutin integrating a state-f-the-art terminal autmatin infrastructure and field instrumentatin, as well as peratinal infrmatin systems, in rder t meet its bjective f becming a preferred LNG terminal n the U.S. Gulf Cast. Furthermre, it needed a cmprehensive industrial safety and security slutin ensuring safe, reliable peratins. Fr ptential supplier partners, this prject required a cmprehensive scpe including: Autmated Infrastructure Distributed Cntrl Systems (DCS) Emergency Shutdwn Systems (ESD) Fire & Gas (F&G) Systems and Devices Field Instrumentatin Intelligent Vide Surveillance Access Cntrl System Asset Management System Plantwide Histrian Supply Chain Management Terminal Scheduling LNG Receipt Crdinatin Gas Nminatins LNG Ship Unlading Energy Balance Operatins & Asset Management Operatins Executin Cmputer Maintenance Management System Labratry Infrmatin Management System Tank Cmpsitin Tracking Operatr Training Simulatin Cmpliance Management Incident Management Cmpliance Planning Cmpliance Mnitring Business Systems Management Business Planning Human Resurces

7 Integrated Autmatin & Security Slutin Imprves Safety, Reliability and Efficiency at Freeprt LNG 7 Financial Accunting Cntract Administratin Perfrmance Management Management f Change IT Cmputing and Netwrking Infrastructure Enterprise Applicatin Integratin Turnkey Prject Services The criteria impsed n prspective suppliers during the bidding phase were very strict. This prject presented cmplex business challenges ranging frm fleet and berthing requirements t security, autmatin and enterprise. In particular, the chsen supplier had t understand and meet r exceed bth the infrastructure demands f the prject and its integrated MES requirements. Freeprt LNG needed a slutin enabling a flawless startup given its cnstraints in resurces and persnnel. The cmpany als wanted ttal peratinal readiness n day ne, which required seamless integratin between autmatin and business systems. Integrated Slutin After a lengthy review f leading industrial autmatin and security suppliers, Hneywell Prcess Slutins was selected as the prime cntractr t versee all aspects f Freeprt LNG s terminal autmatin infrastructure, MES systems and integrated industrial security applicatins. Hneywell was als tasked with prviding hardware and sftware integratin, cnfiguratin and engineering services, as well as n-site assistance with installatin, cmmissining, startup and technical training. Hneywell was chsen fr this prject because f its 25-year histry in LNG industry peratins. Hneywell als demnstrated an ability t deliver a wide scpe f prducts ranging frm field transmitters t physical security t advanced applicatins, and t prvide cmplete lifecycle supprt fr all slutins. Freeprt LNG and Hneywell were able t vercme sme majr challenges in the prject by adpting a business readiness apprach. Hneywell was able t wrk with Freeprt LNG t implement a training system fr their peratrs and ther end users while the plant was being cmmissined, ensuring that peple were prperly trained n day ne.

8 Integrated Autmatin & Security Slutin Imprves Safety, Reliability and Efficiency at Freeprt LNG 8 Hneywell s Integrated Main Autmatin Cntractr (I-MAC) apprach t the Freeprt LNG prject enabled a single, integrated technlgy infrastructure designed t ensure maximum uptime, which is essential t uninterrupted energy supply. This infrastructure is cmprised f the Experin Prcess Knwledge System (PKS), Enterprise Buildings Integratr (EBI) building autmatin system, fail-safe cntrllers, field instrumentatin fr fire and gas, physical security system, plant netwrk design services, UniSim simulatin technlgy, PHD histrian, Prductin Cntrl Center MES applicatins fr LNG, and Business Hiway XML services t integrate t varius ERP systems. At the heart f the autmatin infrastructure, Experin PKS is built n a secure DCS architecture integrating physical security, emergency shutdwn and fail-safe cntrls. Experin is able t lk at the bigger picture with the integratin f prcess cntrl and safety systems under ne platfrm. Experin statins in Freeprt LNG s main cntrl rm prvide a single pint f cntrl fr all systems with full integrity data strage capabilities, a backup upgrade and autmated alarm management (being integrated currently) with full audit trail. Hneywell s UniSim simulatin technlgy enabled Freeprt LNG t be better prepared fr plant startups. The UniSim Design mdeling prgram allws peratrs t experience highly realistic simulatins f plant prcesses, as well as test startup prcedures, shutdwn prcedures and varius perating mdes. This pwerful tl enabled Freeprt LNG t discver several design flaws with the prcess that were crrected prir t initial LNG being intrduced t the facility. Security Strategy Freeprt LNG awarded a cntract directly t Hneywell t supply a cmplete, turnkey slutin fr physical security fr the new terminal peratin the largest prject f its kind t date in Nrth America fr Hneywell. Hneywell als prvided supprt fr peratr training and abnrmal situatin management t help ensure the facility perated frm day ne in a cmpletely safe and integrated manner. Freeprt LNG required Hneywell expertise in the security prtin f the prject. Freeprt LNG signed a risk/reward cntract with Hneywell t help them drive the schedule and imprve the cst psitin f the security system implementatin. Hneywell was able t reduce prject integratin csts by executing the scpe f the design n an excelerated schedule that met Freeprt LNG s prject deadline. Hneywell s apprach prevented significant delays t the verall prject. Hneywell implemented a cmprehensive security management system addressing all threats t LNG plant peratins and assets, as well as the security f site persnnel. The system enhanced security planning, implementatin and peratins, and reduced the lad n security persnnel by rapidly prcessing alarm infrmatin and presenting it t security persnnel in a cncise manner.

9 Integrated Autmatin & Security Slutin Imprves Safety, Reliability and Efficiency at Freeprt LNG 9 The security strategy fr the LNG terminal was based n independent, yet interrelated layers f prtectin t deter, prevent, detect and mitigate ptential threats. Prject Results In leveraging Hneywell as a cnsultant in the develpment f an integrated prject executin strategy, Freeprt LNG was able t implement an autmatin and security slutin supprting its bjective f becming a wrld-class LNG facility. Hneywell s Integrated Main Autmatin Cntractr (I-MAC) apprach uniquely aligned with Freeprt s prject pririties schedule, budget and risk as well as its startup and lifecycle pririties f peratinal and business readiness. Thrugh I-MAC, the prject was delivered n time, within budget and peratinally ready fr startup. Ensuring applicatin reliability befre startup prvided true business readiness, allwed fr the priritizatin f the implementatin sequence and increased acceptance f the applicatins by the peratrs and plant persnnel. In additin t the successful startup, deliveries t custmers have ccurred n time and withut incident. The I-MAC slutin als minimized prject risk and expsure by prviding a single-surce supplier fr the entire autmatin and security installatin. Hneywell s apprach further imprved prject executin efficiency by eliminating cnflicts between autmatin and MES cntractrs, and MES and ERP systems integratin prviders. In additin, the prject prvided Freeprt LNG with ptimal prductin flexibility. Hneywell s Prductin Cntrl Center (PCC) MES suite fr LNG helped t ensure Freeprt LNG s capabilities as an peratr are amng the mst efficient and agile f all LNG receiving terminals in the wrld. The PCC slutin integrates different business applicatins int ne unified system. It allws terminal persnnel t mnitr separate prcess functins simultaneusly, alerting them t ptential issues s they can be dealt with quickly and accurately. Freeprt LNG realized imprved prcess design capabilities using Hneywell s UniSim simulatin tl. UniSim ffers a series f unified simulatin slutins t supprt imprved perfrmance thrughut the lifecycle f a plant, frm ffline use in steady-state design simulatin, cntrl checkut and peratr training t nline use in cntrl and ptimizatin, perfrmance mnitring and business planning. UniSim allwed Freeprt LNG t uncver varius design flaws, and cnsequently imprve its peratinal readiness. Leveraging an integrated DCS-simulatin slutin fr peratr training als ensured well-trained peratins staff frm startup thrugh facility lifecycle.

10 Integrated Autmatin & Security Slutin Imprves Safety, Reliability and Efficiency at Freeprt LNG 10 The Hneywell slutin prvided additinal ecnmic benefits t Freeprt LNG by reducing the cst impact assciated with mitigating ptential security incidents. Integrated security and cntrl systems bsted verall security levels at the terminal facility and streamlined peratins wrkflw. These systems detect threats and incidents earlier, s respnse time is imprved. Plus, they merge data t create mre rbust knwledge enabling mre efficient actins with fewer resurces. A unified peratr interface makes it easier fr terminal persnnel t evaluate ptential threats and take apprpriate actin withut having t cnsult displays n multiple user statins. Persnnel gain cnfidence that functins are perfrmed the same way at each statin with the same set f cntrls. Wrkers wh have multiple rles at the facility are better able t d their jbs and deal with security situatins that may arise. The integrated security infrastructure has a cmmn lk and feel and engineering csts were reduced. This apprach als minimized capital expenses in terms f sftware packages and spare parts required fr the system. Cnclusin Tgether, Experin and EBI enables a single peratr interface integrating infrmatin frm plant autmatin systems, security, access cntrl and surveillance devices. Operatrs can mnitr and cntrl critical assets ranging frm security and fire and gas systems t energy management equipment such as HVAC systems, using a single sftware package. The breadth f Hneywell s slutin enabled Freeprt LNG t enjy the benefits a single supplier t implement and supprt an integrated autmatin/security newrk architecture at its new LNG terminal. Hneywell s LNG cnsulting persnnel and fit-fr-purpse applicatins give Freeprt LNG s peratins, IT and HSE management peace f mind that they will have a safe, dependable and efficient peratin well int its lifecycle. Fr Mre Infrmatin Fr mre infrmatin abut Hneywell s security slutins, visit ur website at r cntact yur Hneywell accunt manager. Autmatin & Cntrl Slutins Prcess Slutins Hneywell 2500 W. Unin Hills Dr. Phenix, AZ Tel: r WP ENG May 2009 Printed in USA 2009 Hneywell Internatinal Inc.

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