ANNUAL MEETING MASTER OF PETROLEUM ENGINEERING · PDF fileANNUAL MEETING MASTER OF PETROLEUM ENGINEERING ... this happens with the simplest hidrocarbon molecule! ... FLUID MANAGEMENT,

ANNUAL MEETING MASTER OF PETROLEUM ENGINEERING

3/May/2016 Instituto Superior Técnico 1

Agenda


• Natural Gas and LNG

• Changes in the LNG Supply Chain

• FLNG – State of the Art / Risks

• Findings about the CSF for FLNGs so far

• The next step

Is there a future for Natural Gas?


• 8.7 Billion people by 2035

• China and India will grow 5.5 % (average) until 2035

• World’s GDP/capita estimated to increase 75%

• Demand for Natural Gas will grow 1.9 % / year

• Transportation using natural gas will grow 3% / year

Source: BP Energy Outlook 2035 Report, February 2015

Liquified Natural Gas


Demand is real… What about the supply?

Source: BP Energy Outlook 2035 Report, February 2015


Evolution of LNG Global Trade

Source: U.S. Securities and Exchange Commission - HÖEGH LNG PARTNERS LP, July 3, 2014


Liquified Natural Gas – what is it?

• Between 87% mol to 99% mol of methane (CH4)

• The liquefaction process involves removal of certain components

• Condensed into a liquid at close to atmospheric pressure by cooling it to approximately −162 °C

• Takes up about 1/600th the volume of natural gas in the gaseous state


Why LNG?

• LNG industry has supplied markets without gas from

places with gas without a market

• Safe

• Possibility of storage

• Environmental friendly


LNG Industry – essential ingredients

• Sufficient gas reserves

• Long term commitments

• Access to Capital

• Strong relationships amongst all stakeholders

• External advisers

• Government regulations

Ironically, this happens with the simplest hidrocarbon molecule!


The problem is…

• Many potential reservoirs, but…

-> too small / too far

->onshore `no-go zones’


Furthermore…

• Other entrants in the market, i.e.

• Other substitutes, i.e.


Changes in the traditional LNG Supply Chain

Source: FLNG—DETERMINING THE TECHNICAL AND COMMERCIAL BOUNDARIES, KBR


Floating,

Production,

Liquefaction,

Storage,

Offloading…

… the possibility to

monetize

undeveloped or

stranded gas fields

FLNG – What is it?


Source: KPMG Global Energy Institute, ‘LNG report series 2014’

Why is this topic relevant?


FLNG Technology potencially reduces…

No need for long pipelines to shore;

compression platforms to push the gas to shore;

nearshore works such as dredging and jetty construction;

onshore development such as building roads, laydown areas and accommodation facilities.

• Cost

• Environment footprint


FLNG Prelude - The largest facility ever built

Length - 488 meters

Breath - 74 meters

220 000 m3 of LNG

90 000 m3 of LPG

126 000 m3 of

Condensate

Source:www.perthnow.com.au

http://www.perthnow.com.au/business/shell-plans-more-flng-after-prelude/story-fnhocr4x-1226673351709


The Prelude FLNG project

Source: Prelude Floating LNG Project, Draft Environmental Impact Statement


Gas Treatment and Liquefaction

Source: Mokhatab (2014)


Technical risks

• Safety Aspect on Space Constraints

• Technology Risk/Uncertainty

• Ship Motions

• Offshore LNG Offloading

• Hull

• Fluid Management


Commercial Risks

• Contractor and Fabrication Competence

• Project Execution

• Availability

• Oil and Gas Prices


Is the design extrapolation from…

• An FPSO

• Onshore LNG project

…a slight deviation

or

… a completely new application?


The Critical Success Factors for FLNGs so far…

Critical Success Factors

PM and PMT

Interface Management

Stakeholders

Scope of Work

Regulatory Framework

Cost Managementand Finance

FEED Planning


The next step…

• Interview with experts across the value chain


The question remains….

…what are the critical success factors in a FLNG project?

Source: www.rigzone.com

http://www.rigzone.com/news/oil_gas/a/118105/FLNG_Prelude_and_Beyond



References

BP. (2015). Energy Outlook 2015. BP.

Bukowski, J. et al. (2013) NATURAL GAS LIQUEFACTION TECHNOLOGY FOR FLOATING LNG

FACILITIES, Air Products and Chemicals, Inc

Caswell,C. et al. (2010), FLNG—DETERMINING THE TECHNICAL AND COMMERCIAL

BOUNDARIES, KBR

Christodoulou, I. (2015), Challenges and opportunities that define the success of an FPSO project,

University of Nordland

IGU. (2015). World LNG Report - 2015 Edition. International Gas Union.

Inkpenn, A., & Moffet, M. (2011). Global Oil / Gas Industry - Management, Strategy & Finance. Tulsa,

Oklahoma: PennWell Corporation.

International Energy Agency. (2015). Energy and Climate Change - World Energy Outlook Special

Report. Paris: IEA.

.


KPMG International. (2014). Floating LNG:Revolution and evolution for theglobal industry? KPMG.

LNG World News. (4 de March de 2016). South Korea: Petronas holds naming ceremony for its first FLNG

unit. LNG World News .

Mokhatab, S. (2014). The handbook of Liquified Natural Gas. ELSEVIER.

Mollard, F., Robert, C. FLOATING LNG: THE CHALLENGES OF PRODUCTION SYSTEMS AND WELL

FLUID MANAGEMENT, Process & Technologies Division, Upstream Offshore Process Engineering,

Technip, Paris, France

Stegenga, S., Pek, B.. (2011). Floating LNG – Groundbreaking Innovation Becoming a Reality.

International Petroleum Technology Conference. Bangkok, Thailand, 7–9 February 2012.: IPTC.

Tusiani, M., Shearer, G., (2007). LNG A NONTECHNICAL GUIDE, PennWell Corporation, Tulsa, Oklaoma

Wang, X., Economides, M., (2009). Advanced Natural Gas Engineering. Gulf Publishing Company,

Houston, Texas.

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ANNUAL MEETING MASTER OF PETROLEUM ENGINEERING · PDF fileANNUAL MEETING MASTER OF PETROLEUM ENGINEERING ... this happens with the simplest hidrocarbon molecule! ... FLUID MANAGEMENT,