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April 2013 LESSONS LEARNT OF CHINA LNG PROJECTS & LNG BUSINESS MODEL Presented for: Lessons Learnt Session BKK PII Habibie Razak, P. Eng., ASEAN Eng. Project Manager, Indonesia Black & Veatch Energy, OIL & GAS

B&V MINI LNG PLANT

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Page 1: B&V MINI LNG PLANT

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LESSONS LEARNT OF CHINA LNG PROJECTS & LNG BUSINESS MODEL Presented for: Lessons Learnt Session BKK PII

Habibie Razak, P. Eng., ASEAN Eng. Project Manager, Indonesia Black & Veatch Energy, OIL & GAS

Page 2: B&V MINI LNG PLANT

AGENDA • INTRODUCTION TO B&V PRICO®

TECHNOLOGY

• PROCESS OVERVIEW

• Process Flow Overview

• Inlet Pressure Control

• CO2 Removal

• Dehydration

• Liquefaction

• Refrigeration

• Boil-off Gas

• Regeneration Gas

• Equipment Arrangement

• Utilities Description

Page 3: B&V MINI LNG PLANT

AGENDA (cont.)

• OPERATING SYSTEM

• Shutdown

• Restart

• EPC PROJECT EXECUTION STRATEGY

• CHINA LNG BUSINESS DISTRIBUTED

MODEL

• LNG BUSINESS IN THE WORLD, OVERVIEW

• LESSONS LEARNT

• CLOSING REMARKS AND QUESTIONS

Page 4: B&V MINI LNG PLANT

INTRODUCTION TO B&V PRICO® TECHNOLOGY

Page 5: B&V MINI LNG PLANT

April 2013

BLACK & VEATCH SERVICE AREAS

ENERGY

WATER

TELECOMMUNICATIONS

MANAGEMENT CONSULTING FEDERAL

ENVIRONMENTAL

2

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April 2013 B&V

INTRODUCTION TO B&V PRICO® TECHNOLOGY

•50 YEARS OF LNG LEADERSHIP • 23 Plants in operation • Experienced with SMR, Expander, Cascade, N2

Process • 140 MM Tons LNG • Focus in PRICO® SMR process 18 Plants in Operation 14 new Plants in Engineering/Construction Broad range of sizes (3 to 150 MMSCFD) Covered by 3 US international patents/new

filings • New developments internationally and in US

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April 2013 B&V

INTRODUCTION TO B&V PRICO® TECHNOLOGY

•SMR PROCESS CHARACTERISTICS • Single refrigeration system • Lower equipment count (low cost) • Simplified process operation • Compression can be parallel/series • Flexible with changing feed-stocks • Easy to start-up, shutdown and restart • Systems hold refrigerant when idle • Applied over a broad range of capacities Le

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April 2013 B&V INTRODUCTION TO B&V PRICO® TECHNOLOGY

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April 2013 B&V

INTRODUCTION TO B&V PRICO® TECHNOLOGY

•ADVANTAGE OF MODERN SMR PROCESS • Versus N2 or Expander Processes 30 – 40 % more efficient Much less steel components and piping Only one compressor, no expander Composition flexibility • Versus C3/MR, DMR or Cascade No series system Can be parallel configuration Much simpler, easy to operate No loss of refrigerant on shutdown

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April 2013 B&V

INTRODUCTION TO B&V PRICO® TECHNOLOGY

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INTRODUCTION TO B&V PRICO® TECHNOLOGY • PRICO® MAIN EXCHANGER (COLD BOX)

April 2013 B&V

Aluminum plate fin exchangers (cores) in parallel

Strictly use external connections

No valves or equipment in cold box

Plate fins are highly efficient and reliable

More than 30+ years of service (no repairs)

More than 100 cores in operation

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April 2013 B&V INTRODUCTION TO B&V PRICO® TECHNOLOGY

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April 2013 B&V INTRODUCTION TO B&V PRICO® TECHNOLOGY

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April 2013 B&V

INTRODUCTION TO B&V PRICO® TECHNOLOGY

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PROCESS OVERVIEW

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April 2013 B&V

PROCESS OVERVIEW

• DESIGN BASIS • One of small scale LNG Plant in China is designed to process

960,000 Nm3/day of feed gas to produce a guaranteed 692.86 tons/day of LNG.

• Production of LNG involves removal of CO2, water and

mercury from the natural gas stream, cooling it sufficiently to totally condense the gas, hydrogen flash removal, and then directing the LNG to the storage tanks.

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PROCESS OVERVIEW • DESIGN BASIS

• Treated gas enters the cold box at about 40C LNG, leaves the cold box condensed at -156C and flashes down to -164C in the storage tanks.

• The resulting high-nitrogen flash gas as well as other boil-

off gas is recovered with the BOG compressor and sent back to the cold box for re-liquefaction and nitrogen removal. Re-liquefied BOG is returned to the tank as LNG product while the purged N2 stream is blended into the plant fuel system.

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April 2013 B&V

PROCESS OVERVIEW • The PRICO® Refrigerant system is

specifically tailored to the design gas composition.

• Some components in the gas will freeze at LNG temperatures and must be removed during liquefaction to prevent this.

• Nitrogen and Hydrogen must be specially handled to prevent excess accumulation in the system.

Component Design

(mol %)

Methane (C1) 92.94

Ethane (C2) 3.97

Propane (C3) 0.69

i-C4 0.12

n-C4 0.12

i-C5 0.05

n-C5 0.03

C6 0.09

C7 -

C8 -

C9 -

C10 -

C11 -

Nitrogen1 0.63 (1.2 max)

Hydrogen2 0.01 (0.8 max)

CO23 1.31 (3.0 max)

He -

H2S,mg/Nm3 2.8

, mg/Nm3 -

Benzene 0.0034

Cyclohexane 0.0061

Mcyclohexane 0.0027

Toluene 0.0011

O2 0.000

Mercury4, μg/Nm3 <100

Design Feed Gas Composition 21C & 7.0 Mpag

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April 2013 B&V

PROCESS OVERVIEW

Amine

CO2 Removal Mole Sieve

Dehydration

PRICO ®

Refrigeration

LNG Storage Tank

Liquefaction

Regen Compression

Regen Gas

LNG

FEED Gas

H2-Rich to FG

N2-Rich to FG

Heavies

H2 Removal

N2 Removal

BOG

LNG

To FG

BOG Compression

To Storage

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Process Flow Overview

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B&V April 2013

Process Flow Overview

• Inlet Gas Pressure Control

• Feed gas arrives at about 7.0 Mpag and is pressure controlled at approximately this pressure.

• Less refrigeration is required to liquefy a given amount of gas at higher pressures, so in general the higher pressure the better.

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Process Flow Overview

• CO2 Removal

• Gas must be treated to <50ppmv CO2 to prevent freezing during liquefaction with Proprietary MDEA Amine-based solvent

• Absorbs Acid Gases (CO2, H2S, etc) as the feed is contacted within a tray tower

• Absorption is reversed by hot stripping vapors in a regenerator tower

• Vapors generated via a steam-heated re-boiler Less

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Process Flow Overview CO2 Removal Le

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B&V April 2013

Process Flow Overview

• Mole Sieve Dehydration • Gas must be treated to <0.1 ppmv H2O to prevent freezing during

liquefaction

• Molecular Sieve Adsorbs water at moderate temperatures and releases it at high temperatures

• Regeneration via heated dry feed gas slipstream; regen gas is then cooled, separated, compressed and recycled.

• Dust is removed via after filters

• Mercury can attack the aluminum in the liquefaction process so is removed via a bed of sulfur-impregnated carbon.

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Process Flow Overview Mole Sieve Dehydration

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B&V 18 April 2012

Process Flow Overview

• Refrigeration

• Refrigeration process uses a single mixed refrigerant loop compressed by a 2-section centrifugal compressor

• Refrigerant is compressed, partially condensed and sent to the main refrigerant exchanger via vapor pressure and refrigerant pumps

• Chilling occurs when the high pressure refrigerant is let down to low pressure (Joule-Thompson Effect)

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Process Flow Overview, Refrigeration Le

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Process Flow Overview

• Liquefaction • Heavies are condensed from the feed gas at about -60℃ and removed

to ensure that the LNG equipment will not plug or foul at LNG temperatures.

• Gas is chilled to -156℃ for full liquefaction at the end of the Refrigerant Exchanger.

• H2 is preferentially removed in the Hydrogen Flash via product flash to 0.7Mpag.

• LNG taken from the Hydrogen Flash Drum bottom is routed to the storage tank.

• The compressed boil-off gas from the tank is re-liquefied in the Refrigerant Exchanger. N2 contained in the BOG is removed in the Nitrogen Flash Drum. LNG from the drum is returned to the tank and the N2-rich gas is blended into plant fuel.

• H2-rich gas and N2-rich gas are both warmed by dry treated gas before being blended into the fuel system.

• The startup exchanger is needed during initial startup in order to condense and remove heavies that could otherwise freeze in the colder bottom section of the Refrigerant Exchanger.

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Process Flow Overview, Liquefaction Le

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Process Flow Overview • Heavies Handling

• Heavies are warmed and partially vaporized in 3 steps using a stream of warm refrigerant liquid from the refrigerant loop. (E-305 HP Heavies Exchanger, E304 LP Heavies Exchanger & E311 Condensate Exchanger.

• The vapor produced in the first vaporization step at V-310 HP Heavies Flash Drum is mixed with the used mole sieve regeneration gas and recycled into the feed using the regeneration gas compressor. Liquid goes on to the next vaporization step (V-311 LP Heavies Flash Drum).

• Vapors from the 2nd and 3rd vaporization steps (from V311 LP Heavies Flash Drum & V-312 Condensate Drum) are blended into the plant fuel system.

• Any remaining heavies liquids are sent to the condensate drum for storage and eventual removal via truck.

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Process Flow Overview Heavies Handling

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Process Flow Overview

• Refrigerant Storage

• The PRICO refrigerant is a mixture of nitrogen and hydrocarbons that is optimized for a given feed gas composition.

• It is therefore important to store these separate components on-site to make composition adjustments to the loop as needed.

• Liquid refrigerants (ethylene V402, propane V403, iso-pentane V404) are stored in vessels on-site

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Process Flow Overview

• Refrigerant Storage

• Storage is also provided for any excess refrigerant mixture in the loop; this can be saved for later use.

• Refrigerant is introduced via a small slipstream of hot refrigerant from the compressor discharge.

• For methane makeup, feed gas may generally be used if the hydrogen content is low. If the feed H2 content is high, LNG may be used to limit accumulation of H2 in the loop.

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Process Flow Overview Refrigerant Storage

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Process Flow Overview

• Boil-Off Gas Handling

• Boil-off and flash gas from the tank and loading truck loading system is combined and compressed

• BOG compressor is an oil-flooded screw compressor for high turndown capabilities

• The BOG cross exchanger is used to ensure non-cryogenic operation of the compressor.

• The compressed BOG is returned back to the Refrigerant Exchanger to be re-liquefied to LNG and purged of excess nitrogen

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PFD Review BOG Compression Le

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Process Flow Overview LNG Storage

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Equipment Arrangement

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B&V April 2013

Project Plot Plan

Process Facility

LNG Storage

Flare

LNG Loadout

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Liquefaction Area Equipment Layout

Amine System

Dehydration

Refrigerant Storage

BOG/Regen Compressors Refrigeration /Liquefaction

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Process Area Equipment Elevation

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Page 42: B&V MINI LNG PLANT

Utilities Description

•Fuel Gas

•Flare

•Nitrogen

• Instrument Air

•Water

Page 43: B&V MINI LNG PLANT

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B&V April 2013

Fuel Gas

• Fuel Gas is supplied from a variety of sources.

H2-Rich Vapor from V-308 Hydrogen Flash Drum/E-309 Hydrogen Flash Heater

N2-Rich Vapor from V-309 Nitrogen Flash Drum/E-310 Nitrogen Flash Heater

Heavies Flash Vapor from V-311 Heavies Flash Drum

Heavies Flash Vapor from V-312 Condensate Drum

• Inlet feed gas may be used as a makeup supply to the fuel gas header

• Fuel gas is used in the following places;

• Steam Boiler

• Regeneration Gas Heater

• Flare tip & Flare header sweep

• Pad gas or sweep gas to various vessels.

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Flare • Both a Cold Flare Header and Warm Flare Header are provided in the

plant.

• Relief valves and manual drains in refrigerant and cryogenic services discharge to the cold flare header.

• Relief valves and manual drains of amine system, dehydration and regeneration gas system discharge to the warm flare header.

• The outlet of DCS controlled depressuring valve downstream of the F202 A/B dust filters are connected to the cold flare header. This is used if the feed-gas is not meeting CO2 & H2O level before going to the cold-box.

• The outlet of DCS controlled depressuring valve on the V-301 refrigerant suction drum overhead are connected to the cold flare header. This is used if the suction pressure of the refrigerant compressor is higher than design pressure.

• Flare headers are provided with purges (fuel gas) to keep air from infiltrating into the flare headers and potentially resulting in a flammable mixture of hydrocarbons and air within the piping system.

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Flare

• The cold/warm flare knockout drums, are located in the flare headers to trap liquids.

• The headers should be sloped so that the flare knockout drums are

the low point in the system and everything else free drains to the drums.

• The drums keep liquids from accumulating in the flare headers

resulting in liquids being entrained up the flare stack during a high flow case, potential high backpressure in the flare system, and/or entrained liquids “raining” to grade around the stack.

• An electric heater is located in the cold KO drum to weather off the

liquids to the flare.

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B&V 18 April 2012

Nitrogen • Nitrogen is supplied at 0.6 Mpag. • There are two sources for nitrogen:

• Plant PSA nitrogen system for general utility use • Vaporized liquid nitrogen for refrigerant makeup and other dry

services • The nitrogen headers supply nitrogen for

• Refrigerant makeup • Compressor seal purges • Refrigerant Exchanger insulation space purge • Other miscellaneous purging services • Utility Stations • Start-Up purging and drying

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B&V 18 April 2012

Instrument Air

• Instrument air is provided at 0.6 Mpag • IA is compressed air that has been dried to a -40°C

dewpoint for use in moisture sensitive services • The instrument air system supplies dry air to:

• Control actuators • Utility stations in the plant • Flare system

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Demineralized Water

• Usually treated on site via filtration and reverse osmosis and stored

in a plastic, FRP or SS tank • Used where the natural mineral content of local water can lead to

poor performance or corrosion • Demineralized water is used for water make-up in:

• Steam boiler – to help maintain proper chemical concentrations • Lean amine surge drum – to replace water lost in saturated

treated feed gas • Amine storage tank – to dilute neat amine to a manageable

consistency

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OPERATION SYSTEM

Page 50: B&V MINI LNG PLANT

Shutdown

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B&V April 2013

Shutdowns

• Utilities

• Support Systems (Flare and Fuel Gas)

• CO2 Removal (Amine System)

• Dehydration (Mol Sieve)

• Liquefaction

• Refrigerant

• Plant Isolation

• Unplanned Shutdowns

• Emergency Shutdowns

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Shutdowns Cause and Effect Diagram

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Shutdowns

EXTENDED REFRIGERANT LOOP SHUTDOWN

• For shutdowns, unless maintenance is planned or the system will require opening, the refrigerant can remain in the system and may be allowed to warm to ambient temperature, as the system design pressures will accommodate this condition.

• However, if maintenance requires access to the refrigeration loop, it is desirable to de-inventory to V-401 Refrigerant Make-up Tank and save as much refrigerant as possible prior to opening the system.

• If only working on a single piece of equipment, isolate and drain that equipment and associated piping only, and keep refrigerant in the rest of the system. Le

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Shutdowns

UNPLANNED

• Unplanned shutdown may be initiated by:

• In the control room or in the field, operators may initiate an emergency shutdown (SIS trip) from switches in the control room or in the field in the event of a catastrophic fire, explosion or uncontrolled release of hazardous materials to atmosphere

• An emergency shutdown will be activated automatically on plant power failure, instrument air failure, or one of several abnormal process conditions listed in the Cause and Effect Diagram.

• For unplanned shutdown responses of the systems, refer to the plant Cause and Effect Diagram.

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Shutdowns

UNPLANNED

• If any equipment in the unit shuts down, operators should attend to the following items:

• Discontinue NG feed if necessary to prevent untreated NG

from entering downstream equipment.

• Verify that all levels and pressures have been properly maintained, all valves are in their proper positions, alarms and shutdowns have cleared, and no personnel are in an area that might be a hazard to themselves or the equipment.

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Restart

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Restart

• General

• Amine System

• Utility System

• Dehydration

• Refrigeration

• Liquefaction

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EPC PROJECT EXECUTION STRATEGY

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April 2013 B&V

PROJECT EXECUTION STRATEGY

• Black & Veatch provide total Engineering, Procurement, Construction (EPC) for all projects.

• We work with local contractors to execute the construction led by construction management team including to provide all pre-commissioning, commissioning, start-up services to hand over a complete operating facility.

• Engineering Stage

• B & V provide engineering services starting with Front-End Engineering Design (FEED) to Detailed Engineering Design (DED) for whole packages with:

Process Engineering Civil & Structural Engineering Rotating Equipment & Piping Engineering Instrument & Control Engineering Scheduling & Cost Estimates

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PROJECT EXECUTION STRATEGY

• Procurement Stage Typical LNG Plant, major equipment and materials are

procured from and contracted to several vendors/contractor/suppliers managed by project manager of Black & Veatch Brazed Aluminum Heat Exchanger (BAHE) or Cold-box

supplied by multiple qualified vendors The refrigerant compressor complete with gear-box and

driver supplied as one package by qualified vendors having experiences in handling refrigerant components. Their scope is to include technical assistance and commissioning.

BOG compressor, regeneration gas compressor and/or recycle gas compressor sourced from qualified vendors.

Dehydration, amine treating package supplied by packagers delivering with or without pre-assembled skids including technical assistance during installation until commissioning

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April 2013 B&V

PROJECT EXECUTION STRATEGY • Procurement Stage (Continued) Carbon steel & stainless steel for pressure vessels, heat

exchangers, condensers, and any associated drums supplied and fabricated by respective vendors. Preferred to go with local fabricators subject to vendor surveillance program conducted by construction and procurement team.

Piping bulk materials including carbon and stainless steel pipe including fittings supplied by certified manufacturers as per the international standards and codes such as ASME, ANSI, etc.

Valves and special cryogenic materials supplied by trusted manufacturers as per the international standards.

All utility system comprised demineralization package, nitrogen packages, flare system, emergency power, consumable storage, instrument air, office, DCS, fire protection system supplied by different reputable vendors.

LNG tank materials & loading system supplied by reputable vendors.

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April 2013 B&V PROJECT EXECUTION STRATEGY • Construction Stage Construction manager & team provided construction work

breakdown structure along with the schedule development to run the project on site.

There are several main scope of works can be decomposed to work breakdown structure (WBS) for LNG Plant Project 1. Inlet gas compression 2. Amine treating package 3. Dehydration system 4. Liquefaction system 5. Refrigerant make-up 6. Boil off gas compression 7. Regeneration gas compression 8. Flare system 9. Utility system 10.LNG tank 11.Buildings 12.Transfer System

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April 2013 B&V PROJECT EXECUTION STRATEGY • EXMAR PROJECT, AN EPC PROJECT

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April 2013 B&V PROJECT EXECUTION STRATEGY • EXMAR PROJECT, AN EPC PROJECT

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B & V April 2013

EXMAR LNG Barge

32

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April 2013 B&V PROJECT EXECUTION STRATEGY • EXMAR FLSRU PROJECT Black & Veatch has been a pioneer in the LNG industry since

1960s and provide EPC for topsides liquefaction equipment & packages using its patented PRICO® LNG technology.

Black & Veatch also provide on site commissioning and start-up Once the EXPORTTM has been built, it will be towed from China

to Colombia where it will be owned and operated by EXMAR for Pacific Rubiales Corporation.

The project is on progress for fabrication and expected to finish on 4th quarter of 2014. The fabrication is located in Zhang Jia Gang, 2 hours by land from Shanghai

Wison offshore & Marine Ltd is delivering overall EPCI to EXMAR. Headquartered in Shanghai, Wison is constructing the facility through its wholly owned fabrication facility in Nantong, China

A global Black & Veatch team working from offices in several countries supporting Wison on this project

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April 2013 B&V PROJECT EXECUTION STRATEGY • Project Organization Chart

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Project Owner/Client

Project Manager

Site Management

QA/QC

National/Local Contractor

Scheduler

Local Procurement

Commissioning & Start-up

Process Engineer

Civil/Structural Engineer

Rotating/Piping Mechanical Eng

Electrical Engineer

Instrument & Control Engineer

Project Control & Scheduler

Engineering & Project Support

Construction

Procurement

Procurement Services

Purchase Orders

Vendor Qualification

Traffic & Logistics

Expediting

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April 2013 B&V PROJECT EXECUTION STRATEGY • EPC Project Responsibilities B & V manages the entire scope of works as the EPC

contractor to coordinate the design, procurement & construction performed by B&V and partners including all contractors and suppliers who are working for project. A typical project would include the following: Perform engineering design internally within B&V engineers

comprised multidiscipline of engineering to meet the standard and specification.

Review the design package from each vendor and identify the interfaces and interconnections among them. Project Manager to ensure there are no missed items.

Manage and coordinate with B & V construction. management team during construction, commissioning and start-up stage.

Management of subcontractors and suppliers to ensure that all works are completed to the specifications and meeting B & V EHS policy and regulation.

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April 2013 B&V PROJECT EXECUTION STRATEGY • EPC Project Responsibilities (Continued) B & V manages the entire scope of works as the EPC

contractor to coordinate the design, procurement & construction performed by B&V and partners including all contractors and suppliers who are working for project. A typical project would include the following: Project management to meet planned schedules and within

the agreed financial budgets. Ensure financial controls are in place and provide reporting

via project controls officer that reflects the status of each cost center under project manager’s control.

Complete reviews of projects to ensure engineering, risk management, QA/QC are all being attained and kept to the minimum standard.

Procure major equipment to ensure all these equipment are complying with standard and specification.

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CHINA LNG DISTRIBUTED MODEL

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April 2013 B&V CHINA LNG DISTRIBUTED MODEL Le

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April 2013 B&V CHINA LNG DISTRIBUTED MODEL Le

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LNG BUSINESS IN THE WORLD; OVERVIEW

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April 2013 B&V LNG BUSINESS IN THE WORLD, OVERVIEW

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April 2013 B&V LNG BUSINESS IN THE WORLD, OVERVIEW

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• Diesel substitution

UP to 65%

• V16 engine

• 4500 HP

• Multiple point injection

Method .

LNG BUSINESS IN THE WORLD, APPLICATION OF LNG

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• Diesel substitution

Up to 65% .

• 6 cylinders in line / 210 Hp .

• Fumigation Method .

LNG BUSINESS IN THE WORLD, APPLICATION OF LNG

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• TO CONVERT THE LARGEST DIESEL ENGINES THAT WILL REMAIN UNDER OPERATION .

LNG BUSINESS IN THE WORLD, APPLICATION OF LNG

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1. Dump Truck

2. Tug Boat

LNG BUSINESS IN THE WORLD, APPLICATION OF LNG

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WHAT IS DUAL FUEL

• DUAL FUEL MEANS :

• A mixture of two fuels at the same time.

• Natural Gas fuel is introduced into the diesel engine

combustion chambers and becomes the main fuel .

• A portion of diesel is required for the ignition and

lubrication process .

LNG BUSINESS IN THE WORLD, APPLICATION OF LNG

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Investment depends on

• Engine Size & number of cylinders

• Method : Fumigation or multiple points injection

• Level of required protection and monitoring

• Amount of LNG to be carried onboard

Savings depends on

• Diesel oil price .

• LNG price .

• Operation cycles .

• Diesel per MMBTU @ +/- 28 US$

• LNG per MMBTU FOB PT Badak NGL for example @ +/- 12US$

LNG BUSINESS IN THE WORLD, APPLICATION OF LNG

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LESSONS LEARNT

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April 2013 B&V LESSONS LEARNT SMR PRICO® offer modular concept with more flexibility. SMR technology fits well across a broad range, offshore &

onshore. In term of EPC work, PRICO® LNG technology is easy to

build since the equipment layout is consistent therefore the project can be done properly and on timely manner.

LNG is becoming competitively to substitute diesel (USD 12 – 14/MMBTU versus USD 28 – 30/MMBTU)

Non-traditional uses for LNG: Distributed LNG Vehicle fuels LNG in China is used for domestic need, NO EXPORTS. B & V experienced and capable to undertake lump sump

EPC projects with proven track records.

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B&V April 2013

QUESTIONS?

1. Quo Vadis Indonesia in term

of Energy Policy Strategy?

2. Can we get more VALUE ADDED?

3. Where are we (PII)?

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