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Liquefied natural gas Trust the industry’s longest-serving turnkey contractor

Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

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Page 1: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

Liquefied natural gasTrust the industry’s longest-serving

turnkey contractor

Page 2: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities
Page 3: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

A leader in the buoyant LNG marketTechnipFMC pioneered base-load LNG plant construction through the first-ever facility in Arzew, Algeria. Some 50 years later, we have built more than 80 Mtpa of LNG capacity.

LNG market growthNatural gas is a premium energy source, with high growth driven particularly by the demand for gas-fired power stations. Gas consumption is expected to double by 2030, with production increasingly far from consumption centers.

Liquefaction is the most economical solution for delivering natural gas to distant markets. Over the past decades, TechnipFMC has executed many multibillion-dollar EPC contracts with our joint venture partners.

Technological and project challengesThese exceptional investments call for exceptional talents, and our international teams of engineers are endowed with sound financial, technical, and project management skills. Our experts also have been developing tools and technologies that are now industry standards and contribute to LNG’s competitive-ness. We are an EPC contractor with significant technology and abundant know-how.

Worldwide engineering and procurementTechnipFMC is present throughout the entire gas value chain: onshore and offshore oil and gas field developments, gas processing plants, liquefaction facilities, and marine terminals. Supported by a worldwide network of engi-neering centers, we are close to our clients and their developments, enabling us to deliver solutions globally and cost-effectively.

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Page 4: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

Our credentials are as sound as our experienceTechnipFMC’s credentials as LNG plant designer, technological solution provider, and EPC contractor – whether as partner or JV leader –are as sound as our longstanding involvement in the industry.

1st key references 2000 and beyond

1964Base load facility Arzew (Algeria)3 trainsCapacity: 1.1 Mtpa

1971Base load facility Skikda (Algeria) 3 trainsCapacity: 2.9 Mtpa

1983Peak-shaving unit Dynevor Arms (UK)Capacity: 200t/day

1999Bonny Island (Nigeria)Base project - trains 1 & 2Capacity: 3.3 Mtpa each

2003Bonny Island (Nigeria)Nigerian Expansion Project Train 3Capacity: 3.3 Mtpa

2003 - 2005Qatargas debottlenecking (Qatar), Trains 1, 2 & 3Capacity expanded from 6.4 to 9.5 Mtpa

2005 - 2006Bonny Island (Nigeria)NLNG Plus - Trains 4 & 5Capacity: 4.1 Mtpa each

2007Bonny Island (Nigeria)NLNGSix - Train 6Capacity: 4.1 Mtpa

2009 - 2010 Qatargas 2 (Qatar)Trains 4 & 5Capacity : 7.8 Mtpa each

RasGas 3 (Qatar)Trains 6 & 7Capacity 7.8 Mtpa each

Qatargas 3 & 4 (Qatar)Trains 6 & 7Capacity : 7.8 Mtpa each

Yemen LNG (Yemen)Trains 1 & 2Capacity: 3.4 Mtpa each

2011Ningxia Hanas Natural Gas Company (China) Capacity: 2 x 0.4 Mtpa

2012Shaanxi LNG Investment & Development Co. (China) Yangling plantCapacity: 1 x 0.5 Mtpa

2017-2019Yamal LNG (Russia)3 trainsCapacity: 5.5 Mtpa each

Liquefied natural gas 4

Page 5: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

Bonny Island Trains 1 to 6Africa’s biggest LNG complex For more than three decades, our JV partners, Snamprogetti, KBR, and JGC, helped establish Nigeria LNG Limited (NLNG) as one of the largest LNG producers in Africa and one of the major players in the global natural gas industry.

When we designed the first two trains of today’s plant in the 1980s, the capacity set a new record through the first-ever use of GE Frame 7 gas turbines. The project also included the first cryogenic hydraulic expansion turbines.

We went on to design and build all six trains with our partners, starting with Trains 1 and 2 in the 1990s. Train 6 was handed over on time at the end of 2007 with an excellent safety record and rapid start-up. These projects provide an overall production capacity for the complex of 22 Mtpa of LNG and 4 Mtpa of LPG and condensate.

Qatargas debottlenecking Trains 1, 2, and 3Increasing plant capacity by removing bottlenecksIn 2001, TechnipFMC – in a joint venture with Chiyoda – received an EPC contract to debottleneck the three existing LNG trains operated by the Qatar Liquefied Gas Company (Qatargas) at the Ras Laffan Industrial site. The contract involved replacing and upgrading key process equipment such as compressors and turbines. Shutdowns were limited to those required for scheduled maintenance.

With 50% additional capacity, the project was the largest LNG train increase in the world to-date, and we completed it ahead of schedule.

Major liquefaction

and marine export

terminals delivered

as engineering,

procurement

and construction

management contracts.

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Page 6: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

The world’s largest LNG trains Our engineering resources allowed parallel execution of several brownfield and greenfield LNG projects.

Qatargas 2 Trains 4 and 5In 2004, following our success in Qatargas Trains 1, 2, and 3 and our effective collaboration with Chiyoda, Qatargas 2 entrusted the Chiyoda/TechnipFMC joint venture (CTJV) with the engineering, procurement, and construction contract for Trains 4 and 5. These two trains, the world’s largest, are designed to produce 7.8 Mtpa of LNG each using the Air Products AP-X process. The LNG produced is sold to the U.K. market.

The joint venture scope also includes the world’s largest-capacity gas reception facilities, gas treatment units, utility systems, and LNG storage and export terminal. Trains 4 and 5 started in 2009.

Rasgas 3 Trains 6 and 7In 2005, the Ras Laffan Liquefied Natural Gas Company Limited (3) followed Qatargas 2 by awarding CTJV two 7.8 Mtpa LNG trains. The Rasgas site is adjacent to Qatargas. The LNG produced is exported to U.S. and Asian markets.

In 2006, the contract for the Al Khaleej Gas Phase 2 Project (AKG-2), with a capacity of 1,250 MMSCFD, was awarded to CTJV for execution within the Rasgas site. Trains 6 and 7 started up in summer 2009 and in early 2010.

Qatargas 3 and 4 Trains 6 and 7In 2006, CTJV was awarded a third EPC contract for two more mega-trains within Qatargas. Train 6 delivers 7.8 Mtpa of LNG, primarily to U.S. markets. Train 7’s output – also 7.8 Mtpa – is sold to North American markets.

This contract, the third of the three large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities.

With these six trains, we helped the state of Qatar become the world’s largest supplier of LNG, with total annual production of 77 Mtpa in 2010.

Liquefied natural gas 6

Page 7: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

Mid-scale LNGHanas LNGIn late 2011, TechnipFMC delivered the Hanas mid-scale LNG plant on behalf of the Ningxia Hanas Natural Gas Company Ltd. One of the largest facilities of its kind in China, Hanas has two trains with a capacity of 400,000 tons per year each. The LNG is distributed to the Chinese market.

Shaanxi YanglingIn 2015, TechnipFMC delivered another mid-scale LNG plant, on behalf of Shaanxi LNG Investment & Development Company in the Yangling Demonstration Area, Shaanxi Province, China. The plant has a capacity of 500,000 tons per year. With these contracts, we demonstrated LNG capability from our Kuala Lumpur regional center and our Shanghai, China, office.

LNG receiving terminalFreeport LNG Receiving terminalIn 2003, TechnipFMC completed FEED studies on behalf of Freeport LNG Development L.P. for a receiving terminal to be located on Quintana Island, near Freeport, Texas. In early 2005, we received–as JV leader– the EPC contract for this terminal, whose sendout capacity reaches 1.5 BCF/D of gas. The project was executed by our operating center in Houston. The Freeport Terminal began operating in April 2008.

Yemen LNG Trains 1 and 2In late 2005, Yemen LNG Company awarded the Yemgas joint venture, an EPC contract for design and construction of Yemen’s first LNG facility. Yemgas was a TechnipFMC- led joint venture shared equally among TechnipFMC, JGC, and KBR. The two trains have a total capacity of 6.7 Mtpa. Train 1 started production in the fall of 2009. Train 2 came on stream in early 2010.

TechnipFMC’s extensive resources enabled detailed engineering of these two trains to be executed in parallel with Qatar’s 6 x 7.8 Mtpa mega trains. As FEED contractor, EPC joint venture leader, and LNG train designer, we asserted our place in the first tier of engineering, procurement, and construction contractors in liquefied natural gas.

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Page 8: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

Yamal LNG In 2014, TechnipFMC, leader of a consortium with JGC and Chiyoda, was awarded a contract for the Yamal LNG plant that will produce a total of 16.5 Mtpa of LNG for the Asia-Pacific and European markets.

The project comprises three liquefaction trains of 5.5 Mtpa that are among the world’s largest and will make extensive use of modularized construction in yards.

This award follows a 14-month period providing project planning, detailed engineering, estimation and procurement work for our client. This early engagement gave a comprehensive understanding of the project, around which the project execution plan has been built and handover of the first train is planned for the end of 2017. The second and third trains are slated to come online in 2018 and 2019, respectively.

Engineering for extremes

Liquefied natural gas 8

Page 9: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

Our strong position in LNG dates to a reputation we earned more than 45 years ago in Algeria, strengthened over the course of process studies we’ve performed for pre-FEEDs, FEEDs and as part of R&D programs.

Our expertise is built on involvement in landmark LNG industry projects and cross-fertilization with TechnipFMC’s NGL recovery and ethylene programs.

Innovations benefitting the entire LNG industryWe pioneered many technological advances currently implemented in modern facilities, such as cryogenic hydraulic turbines for LNG and MR expansion and the split MR scheme introduced during the FEED of the Yemen LNG project in 1997—now routinely applied.

LNG nitrogen rejectionThis technology allows better control of LNG nitrogen content and fuel gas production. It is in service in several plants.

Cryomax® - ERU LNG (ethane recovery) With this process, more than 95% of ethane in natural gas can be extracted in a way that is compatible with the liquefaction process. The process can be used as an integrated feature of a new facility or retrofitted to existing trains not initially designed for deep NGL recovery.

High performance exchangersTechnipFMC and Wieland jointly market enhanced heat transfer solutions for LNG and ethylene plants. Exchangers designed by TechnipFMC around enhanced surface tubes supplied by Wieland improve energy efficiency by increasing production capacity, decreasing energy consump-tion, and reducing CO2 emissions. More than 50 large heat exchangers using this technology are in operation today.

Air-cooled heat exchangersDIESTA is a finned-tube technology for air- cooled heat exchangers that we developed along with Kelvion and Wieland. It uses enhanced sufaces to improve plant efficiency and reduce construction costs. In 2015, the three companies received a French-German Economy Award for the innovation.

Technology for high methane content LNGWe have developed other technologies that are finding applications in the next generation of LNG trains. These include improvements to pro-cesses for deep extraction of ethane and heavier components (C2+ cuts) to produce “lean LNG” with high methane content.

Extensive know-how in LNG

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Page 10: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

Computational fluid dynamics (CFD) and dynamic simulation help reduce our customers’ investment costs by decreasing design margins compared to less precise methods.

Advanced numerical simulation

CFD used for slug catchers

� Design validation (vapor/liquid separation)

� Study of transients

Air recirculation studies for air-cooled LNG plants

� Evaluation of any temperature increase at the inlet of sensitive equipment (air coolers; gas turbines)

� Optimization of the plot plan for maximum LNG production

Compact equipment design

� Vapor/liquid disengagement in large LNG train propane evaporators

� Fuel gas mixing drum design validation (including internals details) to ensure proper variation of FG properties during transient phases

Liquefied natural gas 10

Page 11: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

Critical piping hydraulics

� Optimization of pipe routing upstream of critical separators for proper operation of distributors

� Optimisation of large compressor suction piping layout

Dynamic simulation of cooldown of an LNG piping network

� Validate LNG storage and loading cooldown procedure

� Optimize the required cold gas and LNG flows and the sequence duration

Process control dynamic simulation

� Determination of optimum control loop parameters

� Evaluation of unit behavior during transient conditions

Dynamic simulation of compressor start-up/shutdown

� Sizing of anti-surge control valves and hot bypass valves

� Specification of maximum allowable start-up pressures

Operator training simulator

� With selected partners, TechnipFMC designs and supplies LNG plant operator training simulators

� We also conduct training sessions

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Page 12: Liquefied natural gas - TechnipFMC plc1).pdf · large LNG projects in Qatar, was final confirmation of clients’ and project stakeholders’ confidence in CTJV’s unique capabilities

Philip Hagyard

Tel: +33 1 47 78 27 17

[email protected]

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