Developing an Integrated Small & Mid-Sized floating LNG Solution. Andreas Hambücker



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Developing an Integrated Small & Mid-Sized floating LNG Solution Andreas Hambücker

Content Introduction FPSO s LNG Carriers LNG FSRU FLNG Seoul, 2013 2

Company Introduction TGE Marine Gas Engineering is one of the world s leading engineering contractors specialising in gas carrier and offshore units. The Group was founded in 1980 as Liquid Gas International (LGI) and in 1993, was acquired by Tractebel/Suez operating as Tractebel Gas Engineering. Since an MBO in 2006, the Group has been called TGE Marine AG ( TGE Marine Gas Engineering GmbH ). Major shareholders: 49.9% Caledonia Investment plc and GASFIN Group approx. 47.4%, management, employees, individual shareholders approx. 2.7% Address: Mildred-Scheel-Str. 1, 53175 Bonn, Germany Web: www.tge-marine.com FLNG Seoul, 2013 3

Key TGE Marine facts Key facts 30 years of experience More than 150 gas carrier contracts Delivery of several novel and innovative gas plant solutions: Five 22,000 m³ ethylene carriers, largest purpose-built ethylene ship in the world built at Jiangnan Shipyard Topsides for 95,000 m³ LPG-FSO built at Samsung World s first combined 7,500 m³ LNG/ethylene carrier built at Remontova for the Anthony Veder Group Lloyd s List Ship of the Year Award in 2008 for 8,000 m³ ethylene carrier Isabella Kosan built at Sekwang HI for the Lauritzen Kosan Group World s first 16,000 m 3 LNG-FLSRU under construction at Wison Offshore & Marine Ltd. for Exmar Group Well established in East Asia with Shanghai branch office since 1994 Delivery or fabrication of more than 200 cargo tanks More than 50%* market share for ethylene carrier gas plants (*historically by total, >60% market share from 2002 to present) Own patented LNG tank support design for shuttle tankers and floating units In-house ship design packages available for a wide range of gas carriers FLNG Seoul, 2013 4

Business activities and expertise Cargo handling systems and tanks for gas carriers LPG carriers, CO2 carriers Ethylene carriers LNG carriers Cargo handling systems for offshore units FSO/FPSO for LPG FSRU and FPSO for LNG CO2 liquefaction, storage and offloading units Fuel gas systems LNG fuel supply for merchant vessels Type C LNG tanks Gas processing system FLNG Seoul, 13 5

Small-scale LNG chain market drivers LNG as fuel for small power plants on islands and remote locations Potential locations: Caribbean islands, Indonesian islands, Mediterranean islands, Philippines etc. Environmental pressure to implement clean fuel instead of HFO/MDO or even coal Potential de-coupling of LNG from oil price link and consequently reduced fuel cost compared to MDO Tailor-made small-scale LNG supply chain will reduce CAPEX compared to traditional on-shore solutions FLNG ( Floating LNG ) Improved process technology for LNG-FPSO ( Floating production storage & offloading ) have strongly improved the CAPEX requirements for capacities of 0,5 to 1,5 mtpa with project budgets of 600 1,000 USD/t of annual liquefaction capacity LNG-FPSOs and FSRUs ( Floating storage & regasification units ) can be fabricated in modern shipyards within 18 to 36 months depending on complexity and consequently, be faster implemented than on-shore solutions LNG as fuel for merchant vessels In 2015 MARPOL Annex VI revision will force owners operating in environmental control areas (ECA,SECA: North Sea/Baltic Sea) to use either expensive MGO, switch to LNG as fuel or implement scrubber technology Chicken and egg situation is slowly resolving as the first projects implemented and the interest of larger LNG owner in the bunker market becomes noticeable FLNG, Seoul 2013 6

LNG supply chain Global LNG supply chain Large scale LNG liquefaction plants Onshore/Offshore Small scale LNG production Pipeline gas, e.g. Norway Stranded Gas Onshore/Offshore Re-export from Import/Re-gas terminals More and more import terminal apply for re-export licences 19-May-2010 Coral Methane loading at Zeebrugge, first loading of a small carrier at a large import terminal. Reservoir Liquefaction Shipping Regasification Markets FLNG, Seoul 2013 7

Content Introduction FPSO s LNG Carriers LNG FSRU FLNG Seoul, 2013 8

Key references: LNG-FPSO 95,000 m³ LPG FSO Liberdade : Owner: Conoco Philips Yard: Samsung HI, Korea Classification: Lloyd s Register Completion: 2003 Scope: Complete gas handling system 16,000 m 3 LNG-FLSRU: (under construction) Owner: Exmar Group, Belgium Yard: Wison Offshore & Marine Ltd, China Classification: BV Completion: 2015 (under construction) Scope: Complete gas handling system for loading and unloading, cargo tanks Process liquefaction package: Contracted to Black & Veatch by Wison FLNG Seoul, 2013 9

FPSO technical concept Small Scale FPSO: 0.5 mtpa 40,000 m³ storage capacity 4 cylindrical storage tanks L x B x D: 145 x 43 x 24 m FLNG Seoul, 2013 10

FPSO technical concept Conceptual Design for 0.5 mtpa FPSO (40.000 m³ storage) 1 LNG FPSO designed to receive gas direct from the well via mooring turret. 2. FPSO provides gas conditioning, processing, pressurisation and liquefaction modules. Space included for future modification when moved to new field 3. Liquefaction plant to use proven MRC process to liquefy 0.5 mtpa 4. Gas lost: 9% (utilities: 4 5 MW) 5. Storage in cost competitive, IMO Type C cylindrical storage tanks 6 3 4 6. Offloading via fixed loading arms, or tandem hose 5 2 1 FLNG Seoul, 2013 11

Topsides for FPSO Selection of processes and equipment Liquefaction Separator Feed gas Compress ion AGRU Dehydration Storage Tanks Capacity up to 1,5 mtpa Process Selection is influenced by various factors: - Gas Composition - Ambient Conditions - Location of the plant - Maritime conditions - Machinery availability - Operational Aspects - Commercial and trade aspects FLNG Seoul, 2013 12

Topsides for FPSO Inlet / Gas Pre-treatment Liquefaction Separator Feed gas Compress ion AGRU Dehydration Storage Tanks Slug catcher for removal of dust, solid particles, hydrate inhibitor etc. Feedgas compression may be required if supply pressure is too low Acid Gas Removal Unit Amine Units Mercury Removal bed if required Dehydration of gas by Molesieves / TEG Units FLNG Seoul, 2013 13

Topsides for FPSO Liquefaction Liquefaction Separator Feed gas Compress ion AGRU Dehydration Storage Tanks Range of use: Small scale 1-15 t/h LNG A pure refrigerant (typically nitrogen) is deep-cooled by expansion to condense the natural gas to LNG based on the Reverse Brayton / Claude Cycle. Low efficiency compared with other processes. Specific power consumption about 0,55 kwh/kg for dual expander system Less sensitive to feed gas changes. Easier to operate than the MR Cycle. FLNG Seoul, 2013 14

Topsides for FPSO Liquefaction Liquefaction Separator Feed gas Compress ion AGRU Dehydration Storage Tanks Range of use: 10 50 t/h LNG A single multi-component refrigerant is used comprising typically nitrogen, methane, ethylene and butane. Several modifications exsist. High efficiency compared with expander process. Specific power consumption about 0,31 kwh/kg Sensitive to feed gas changes. Operation complicated FLNG Seoul, 2013 15

Topsides for FPSO Liquefaction Liquefaction Separator Feed gas Compress ion AGRU Dehydration Storage Tanks Range of use: up to 2,5 t/h LNG Cascade systems have been developed in house for LNG carriers to use synergy effect with ethylene reliquefaction Systems, or Laby-GI compressors for ME-GI applications Proven Components Reliable operation FLNG Seoul, 2013 16

Tank Design Tank Design (internal insulation tanks) (Integral tanks) (Semi-membrane tanks) Membrane tanks Independent tanks (Type A) Type B Type C Typical containment systems for LNG Double row re-inforced membrane type tanks have only recently been developed spherical tanks generate enormous problems to place a process plant and are limited to very few fabricators IHI type B tanks are limited to license with very few yards Type C tanks Self supporting pressure vessel Cylindrical or bilobe with outside insulation No secondary barrier required No restriction concerning partial filling Tank design temperature -163 C Tank material (Aluminium) 9% Ni-steel SS AISI 304L FLNG Seoul, 2013 17

Type C tanks for LNG carriers and floaters Design constraints for LNG compared to Ethylene: Higher material shrinkage due to: Larger delta T during cooling down Higher material shrinkage factor for AISI 304L Problem especially for bi-lobe tanks: for 15 m diameter tanks the shrinkage is 35 mm (304L) Detailed design review and complete re-design of supports necessary (displacement and stress analysis, temperature profiles)! Design appraisal by a classification society FEM analysis of tank shell, supports and shipside steel structure for different loading cases Patented design for type LNG tank supports Tank insulation Same insulation type applied as for LPG or ethylene carriers LPG/LEG carriers: polystyrene slabs up to 240 mm: k-value 0.186 W/m²K Increase of insulation thickness to 360 mm: k-value 0.121 Improvement of insulation with combined polystyrene/polyurethane slabs (300 mm): k-value 0.121 Modification of design details of the insulation due to: shrinkage stress FLNG Seoul, 2013 18

Content Introduction FPSO s LNG Carriers LNG FSRU FLNG Seoul, 2013 19

Key references: LNG Carriers 7,500 m 3 LNG/LEG carrier: Owner: Anthony Veder, Holland Yard: Remontova, Poland Classification: BV Completion: 2009 Cylindrial type C tanks Dual fuel, diesel/gas electric drive 15,600 m 3 LNG carrier: Owner: Anthony Veder, Holland Yard: Meyer-Werft, Germany Classification: BV Completion: 2012 Bilobe tanks Duel fuel, direct drive FLNG Seoul, 2013 20

Key references: LNG-carriers (under construction) 30,000 m 3 LNG-carrier: Owner: CNOOC, China Yard: Jiangnan Shipyard, China Classification: CCS, ABS Completion: 2015 (under construction) Scope: Complete gas handling system, cargo tank design and material package 28,000 m 3 LNG-carrier: Owner: Dalian INTEH Group, China Yard: COSCO Dalian Classification: CCS Completion: 2015 (under construction) Scope: Complete gas handling system, cargo tank design and material package FLNG Seoul, 2013 21

Gas Plant Design Objective: minimize the CAPEX Utilize the know-how from design of Ethylene carriers Main questions: Cargo tank arrangement Terminal Compatibility Boil-off gas handling / propulsion system Fuel Gas Systems Multi cargo vessel Equipment sizing Cargo Tank Arrangement Ship capacity < 20,000 m³ Cylindrical tank design 2 tank design up to abt. 12,000 m³ 3 tank design up to abt. 20,000 m³ Ship capacity > 20,000 m³ Bilobe tank design 3 tank design up to 25,000 m³ 4 tank design up to 45,000 m³ FLNG Seoul, 2013 22

Terminal Compatibility Manifold position Elevated Manifold Manifold sizing Loads on manifold flanges/piping Mooring arrangement Fenders parallel body length ESD ship shore connection CTS custody transfer Artist impression from SLNG presss release Aug. 2011 Coral Methane loading in Zeebrugge - Singapore, Zeebrugge and Gate have confirmed their intentions to built small jetties - FLNG Seoul, 2013 23

Cargo Handling System 15,600 cbm LNG carrier FLNG Seoul, 2013 24

BOG Handling Multi Cargo Vessels BOG Handling Pressure increase + Ease of operation - Limited sailing time BOG consumption as fuel Diesel/gas electric Direct drive BOG reliquefaction -High capex - Sophisticated operation - High maintenance cost + high trading flexibility Gas combustion unit (GCU) + ease of operation - Loss of cargo Multi cargo / Equipment Multi cargo vessels have been designed and are available Qualification of new vendors and technologies for LNG, e.g. Deepwell pumps Valves Standard ethylene compressors as LNG fuel gas compressors Optimization of Capex with a market specific approach to upgrade the technology of ethylene carriers to LNG instead of downsizing full size LNG carriers to small scale LNG 4 3,5 9% Ni 3 SS 304L Pressure [bar g] 2,5 2 1,5 1 0,5 Basic LNG Composition N2:2% CO2:0% C1:89% C2:5,5% C3:2,5% C4:1% Tank Volume: 30.000 m³ Insulation: 300 mm Polystyrene Initial pressure: 140 mbar g 0 0 10 20 30 40 50 60 Sailing Time [days] FLNG Seoul, 2013 25

Fuel Gas Systems Diesel electric Direct Drive Two stroke Four Stroke Supply pressure BOG handling Dual Fuel Single fuel Burning of BOG, Forced vaporization Separation of fuel Tanks BOG Compressors, Fuel gas compressors, Transfer Compressors LNG Compositions Dynamic behaviour of fuel gas system Buffer capacities Gastech, London 2012 26

Mid Scale LNG carrier Designs: 30,000 cbm LNG carrier with bilobe tanks Principal particulars: Length o. a. 184.60 m Length b. p. 175.20 m Breadth moulded 27.60 m Depth moulded 18.50 m Tanks Tank 1 conical bilobe Tank 2-4 bilobe Draught/Deadweight: Design Draught 8.80 m Corresponding deadweight 17,600 T Speed/Endurance: Service speed at design draft 16.00 kn Endurance 12,000 nm Machinery Dual fuel engine 9000 kwe FLNG Seoul, 2013 27

Content Introduction FPSO s LNG Carriers LNG FSRU s FLNG Seoul, 2013 28

LNG FSRU s (a case study) Project example: 2 x 25,000 m³ FSRU for Caribbean islands Highly polluting and/or expensive fossil fuels (heavy fuel oil, diesel oil) are nowadays used for power production at isolated power stations, e. g. on islands Natural gas is a much cleaner and cost efficient alternative Less CO 2 Less NO x No SO x No particulates Isolated power stations are not connected to NG pipeline grids The existing LNG infrastructure (ships, terminals) is designed for much larger volumes than needed for these consumers FLNG 2013 29

Fellow group company Gasfin Development SA is currently developing an LNG infrastructure project together with EDF (Electricité de France) for their power generation facilities in Martinique and Guadeloupe. About Gasfin Development SA: Offer LNG delivery service utilizing custom built small to mid-scale infrastructure Key technology partner: TGE Marine Majority shareholder Gasfin Group is also a significant shareholder of TGE Marine Key technology for Caribbean project: TGE Marine s design concepts for small to mid-scale LNG imports Press release Jan 2011: FEED and permitting are progressing Existing HFO powered engines will switch to LNG LNG import approx. 400,000 tpa in total (both islands) FLNG Seoul, 2013 30

Each island: One purpose built FSRU of 25,000 m³ storage FSRUs moored in vicinity of power plants with short subsea pipeline to shore LNG supply from regional terminals by a purpose built LNG carrier Size of shuttle tanker: Min. 20,000 m³ (and backup option) TGE Marine performs the FEED for the shuttle tankers and the FSRUs (hull, marine and cargo systems); mooring studies, subsea systems, etc. subcontracted to others FLNG Seoul, 2013 31

Technical concept FSRU Send out to subsea pipeline via flexible risers Regasification using air vaporizers (no environmental impact) Electricity generated with natural gas fuelled gensets 20+ year docking interval, designed to remain on site during severe weather conditions Tank design (pressure vessels) increases operational flexibility High redundancy with minimal maintenance Length: 106m; width: 39m; depth: 20m; draft 7m Send out: max. 50t/h, normal 25t/h @ 14 bar (battery limit) FLNG Seoul, 2013 32

Technical concept mooring and berthing The FSRU will be permanently moored on site for the project life using a spread mooring system with drag embedment anchors The system is designed to withstand 100 year return hurricane conditions The LNGC will berth next to the FSRU in a side by side modus using (conventional) hard arms Berthing aid systems, quick release mooring hooks and fenders used will be similar to those used at onshore receiving terminals FLNG Seoul, 2013 33

Technical concept FSRU process FLNG Seoul, 2013 34

Conclusion TGE has developed cost efficient and fit for purpose solutions throughout the complete small to mid scale LNG chain. The first LNG FSLRU is under construction A number of small to mid-scale LNG carrier have recently been delivered or are under construction. Small scale projects can be developed as complete individual chain or with and interface on the production of supply side to the world scale LNG trade Several small scale LNG projects planned and close to FID s LNG as fuel will be a further driver for this market Small and mid scale LNG is a future market and which has already started and is steadily increasing. FLNG Seoul, 2013 35

For further information please email: sales@tge-marine.com Thank you for your attention www.tge-marine.com