Tomorrow-Technip-April 2016

TOMORROWA Technip Technology Publication - Issue 8 - April 2016

Preparing for harsh environment FLNGs Joining forces with welding world leader Serimax

Enhancing Fluid Catalytic Cracking operations Integrated Platform Analysis and Design

P. 10-11

P. 6-7

P. 4-5

Director of Publication: Christophe Bélorgeot

Chief Editor: Laura Pereira Neto

Associate Editors - April 2016 issue:

Laurent Decoret, Brian Roberts, Jim O’Sullivan,

Cindy Viktorin, Marie-Christine Charrier,

Cyril Tigien, Jean-Marc Letournel, Gary Jackson,

Ziad Jawad, Pauline Ferron, Laure Montcel,

Stéphane Paquet, Henri-Frédéric Hibon

Photography: Technip image library, Sylvie Valla,

HiLoad LNG AS, Serimax

Design and production: Anne-Laure Seguette, Lydia Marchetti

The Group Communications Department would like to thank everyone who

contributed to this issue.

Technip - 89 avenue de la Grande Armée - 75116 Paris - France

This document is printed on Heaven 42

This document is the property of Technip. Any modification, reproduction or commercial use of this document is prohibited.

Tomorrow MagazineA Technip Technology PublicationIssue 8 – April 2016You can find the previous issues of Tomorrow

at: http://www.technip.com/en/media-center/

tomorrow-magazine

Your comments are always welcome:

publicrelations@technip.com ISSN 2273-8703

Floaters design expertise transfer throughout Group

P. 8-9Fluid Catalytic Cracking a world-class technology that enhances refining products

A strategic partnership for pipeline welding

HiLoadan LNG offloading technology

This document is printed on Heaven 42

This document is the property of Technip. Any modification, reproduction or commercial use of this document is prohibited.

Laurent DecoretGroup Senior Vice President, Subsea Innovation & Technology

As someone passionate about technology, it is a great pleasure to welcome you to this latest issue of Tomorrow, Technip’s technology and innovation magazine.

I started my career in the oil and gas industry as a flexible pipe design engineer and greatly enjoyed optimizing what was at that time perceived as a relatively new but enabling cost-effective technology. Throughout my career, I have witnessed time and time again how technological advances in product performance, manufacturing efficiency or installation capabilities have always been at the forefront, driving our industry forward to tackle ever more complex and challenging projects.

Being now in charge of Subsea Innovation and Technology at Technip, I have daily opportunities to see the passion that animates our teams of experts, researchers and engineers throughout the Group to innovate and push the limits of what is possible in all our product lines even further! This spirit has made and continues to make Technip a technology leader in its field.

Technology and Innovation remain a key strategic focus and more than ever a way to differentiate ourselves in the current challenging environment. The increasing year-on-year Research & Development (R&D) budget illustrates Technip’s commitment to extend the reach and performance of our products as well as expand our portfolio of technologies and services to provide enabling solutions to our clients. On the Subsea side, we are developing what we believe will be “game changing” technologies, such as state-of-the-art riser inspection tools or “smart” pipelines with active heating capability addressing the flow assurance challenges associated with complex production fluid or long tie-backs.

Of course cost effectiveness is crucial and new technology not only must be technically enabling and reliable but first and foremost must contribute to reducing the overall cost of developing oil and gas offshore fields to make our client’s projects viable. A large portion of our R&D effort is directly dedicated to cost reduction, for example by qualifying more cost-effective raw materials for use in our rigid, flexible or umbilical products, developing innovative optimized field architecture solutions or improving the efficiency of our manufacturing and installation assets. A good example of the latter is our One Welding initiative and the partnership with Serimax that we present in detail in this issue.

A zoom on the Fluid Catalytic Cracking technology shows why it is an enabling process for modern refineries. On the offshore front, the HiLoad system is an innovative solution that will improve the efficiency and reliability of FLNG offloading. Finally, the article on our integrated platform analysis and design system illustrates how Technip’s expertise in floating production facilities has been consolidated to provide an efficient and reliable design platform.

I do hope you will thoroughly enjoy reading this new issue of Tomorrow.

EDITORIAL

“Technology and Innovation remain a key strategic focus and more than ever a way to differentiate ourselves in the current challenging environment.”

Tomorrow-Technip-April 2016

Technip prepares for harsh environment FLNGs

Almost without exception, global marine LNG transfer operations use rigid pipe loading arms mounted on a jetty structure to connect to the mid-ship LNG manifolds on the LNGC, which is moored in a side-by-side configuration alongside a jetty in sheltered waters.

However for FLNGs which are located in unsheltered open sea areas, the LNGC needs to moor alongside another floating, and hence moving, body rather than a fixed jetty, and as a result the relative motion between the two facilities increases.

On Technip’s two FLNG projects to date, the LNG transfer operation is still feasible using side-by-side mooring and rigid pipe loading arms but this configuration has limits that are exceeded in harsher environments.

Technip and HiLoad LNG AS developed a new offloading system, the HiLoad LNG Parallel Loading System (PLS) that is able to safely maintain a separation distance between the FLNG and LNGC of 100 meters.

An appropriate method in persistently mild and harsh environments

To date, all sanctioned Floating Liquefied Natural Gas Unit (FLNG) projects are located in areas of the world where the environment of wind, waves and current are sufficiently benign to enable the FLNG vessel to offload its cargo to an LNG carrier (LNGC) using conventional technologies. However as FLNG developments are being contemplated in harsher environments, certain systems go beyond their envelope of safe and reliable operation and need to be substituted by different ones.

Since late 2014, Technip, as the world leader in FLNG, has been working with HiLoad LNG AS to develop a new offloading system to enable FLNGs to operate in persis-tently complex environments.

Typical view of an LNG transfer operation from a jetty in sheltered waters

4 - 5

For further information, please contact Stéphane Paquet, Discipline Department Manager spaquet@technip.com

A self-propelled semi-submersible vesselTo permit a safe distance between the facilities, the HiLoad vessel is used for dynamic positioning and for connection to the LNGC’s mid-ship manifold. This mooring and LNG transfer arrangement can be used with standard unmodified LNGCs. The flow transfer of LNG from the FLNG to the HiLoad vessel is enabled by Technip’s ALLS cryogenic flowline-based system.

The HiLoad vessel is a self-propelled semi-submersible vessel that is able to attach itself to the LNGC by positioning its submerged pontoon underneath the LNGC’s keel. The connection between the vessels uses the same hydrostatic principle used by the Remora fish when it hitches a ride on a larger fish.

Indeed, the Remora company has already operated a HiLoad type vessel (HiLoad DP No.1) for oil offloading operations in Brazil. Connection between vessels has been demonstrated during harsh environmental conditions in the North Sea and the HiLoad DP No.1 vessel has crossed the Atlantic Ocean twice whilst

connected by suction to a trading tanker. The HiLoad LNG PLS has been studied from a station keeping perspective together with MARIN in The Netherlands with input from Kongsberg Maritime (the DP system supplier for the HiLoad DP No.1 vessel). Required to perform the operation, the marine procedures have been

reviewed and developed by the Captains from the HiLoad DP No.1 vessel and master mariners with LNGC experience. The station keeping of the PLS configuration was confirmed using MARIN’s full size bridge simulator in Wageningen, The Netherlands where it was witnessed by representatives from seven oil companies.

As a result, Technip together with HiLoad LNG AS has developed an offshore offloading system that is suitable for LNG transfer from FLNG vessels to standard/unmodified LNG carriers in persistently harsh environments. This solution is a major enabler for when the industry decides to deploy the game changing technology of FLNG in areas with more challenging sea conditions.

The HiLoad LNG PLS using Technip’s ALLS cryogenic flexible flowlines

View from the LNGC bridge during the HiLoad LNG PLS operation simulation at MARIN

Tomorrow-Technip-April 2016

Serimax is recognized for its experience in major international line pipe projects, with a reputation for quality, being customer focused and a strong commitment to R&D. This partnership is part of Technip’s strategic focus on

technology, a key differentiator to contribute to project cost optimization. In this respect, Technip, a long-lasting customer of Serimax, would acquire a minority stake in the company and will become exclusive

partners on Reel-lay pipeline welding activities. This partnership will enable Technip to implement its corporate strategic initiative of harmonizing and better controlling the costs of our welding activities.

Technip and Serimax, a Vallourec subsidiary and world leader in offshore & onshore welding solutions, announced on January 11th 2016 entering into an agreement in principle to establish a strategic partnership in the domain of pipeline welding. This strategic partnership, which is subject to regulatory approvals, will include exclusive arrangements in the Reel-lay welding pipeline segment as well as research and development (R&D) related programs.

Joining forces with welding world leader Serimax

A strategic partnership for pipeline welding

One of the key drivers in this strategic initiative is to harmonize Technip's pipeline welding methods and processes across our spoolbases (Mobile, Evanton, Orkanger, Dande) and our S-lay vessels (G1200 & G1201). Welding is on the critical path of most of our rigid pipeline construction projects, and this activ-ity can directly impact the schedule and overall budget (productivity below target or/and high reject rates).

Deploying the Serimax welding technology in all our construction sites will provide us with the opportunity to develop consistent welding solutions, to adapt our capabilities upfront and consolidate global lessons learned for greater reliability in our operations. Another advantage of having the same technology and equipment is to have our welding team trained on

the same system together with key Serimax experts. This will enable to share the best practices and to benchmark and select the best methods on all our sites. Using consistent methods to weld our pipelines will ensure the same weld quality is achieved wherever the location. Combining our domains of expertise, we will offer our clients a harmonized solution with greater operational

repeatability. In the current environment, we need more than ever to deliver the best performance with optimized costs and schedules. To execute “right the first time” is a key objective to improve our learning curve, decrease our reject rates and reduce project costs. This one welding initiative and our strategic partnership with a leader in pipeline welding solutions are the keys to meeting these goals.

Strengthening and harmonizing our pipeline welding capabilities to deliver operational excellence

1

2

3

Harmonize pipeline construction methods &

benefit from consolidated worldwide experience

Develop exclusive, differentiating &

innovativetechnology

Achievecompetitiveness,

reliability & operationalexcellence

Technip's key drivers for its welding activities

On the one hand, field developments in deep water, with higher pressure and temperature levels, and more corrosive fluids, require to develop new welding technologies. On the other hand, the current turbulent environment requires us to offer high-end competitive capabilities to address operators’ capital investment constraints. Serimax has been investing continuously to develop its leadership position in the field of welding technology through strong product development and R&D programs: Saturnax range, Externax, CleverWeld, and welding methods for corrosion

resistant alloys, steel catenary riser etc. The inauguration of Serimax's new Welding Technology Center located close to Paris, a facility dedicated to R&D and innovation, is demonstrating its commitment to building the future and developing new equipment solutions, new welding processes, weldability programs, and much more. Combining our expertise and investing in joint R&D programs provide a unique opportunity to develop fit-for-purpose welding solutions for the Reel-lay market and new technologies highly focused on driving the cost of our projects down.

The development of dedicated welding processes using robotic or breakthrough technologies will tackle market needs, improving productivity. Focusing on early engagement to anticipate customer needs and by combining industry leading technologies and capabilities, our joint R&D program will drive technological innovation. This to improve quality and efficiency, ultimately reducing project cost, as well as enabling us to respond to new growing challenges (high fatigue resistance, exotic material for sour services application) with optimum welding solutions.

6- 7

Subsidiary of Vallourec, Serimax is a full service welding company offering fully integrated welding solutions for operations on land and at sea, in the most extreme conditions and challenging environ-ments, whilst being tailored to the specific needs and requirements of its clients.

SerimaxAbout

Fostering innovative and cost-effective solutions

“This partnership is part of Technip's strategic focus on technology, a key differentiator to contribute to cost reduction on projects.”

Tomorrow-Technip-April 2016

Automatic welding solution with Serimax new technology Saturnax 09

Refiners are constantly challenged with finding flexible, cost-effective ways to maximize profitability from a barrel of crude oil. The challenge is even more poignant in today’s marketplace as refiners look for ways to enhance operating performance and reliability over a range of feedstocks. One proven approach is to process the lowest cost crudes or other opportunity feeds and convert them into lighter,

higher value products such as gasoline and propylene. The primary conversion unit that can accomplish this is the Fluid Catalytic Cracking (FCC) Unit, a leading proprietary technology provided by Technip and implemented across the industry, including on Group's projects.An alliance of four companies - Technip, Axens, IFPEN and Total - successfully collabo-rated in the design, develop-ment and implementation of the technology for more

than 30 years. The alliance has licensed 60 grassroots units, including the world’s largest resid FCC unit located in the Middle East, and performed more than 250 revamp projects for units of every major licensor of FCC designs. With a focus on continued improvement, three proprietary equipment devices are key to the FCC unit’s safety, operability and mechanical reliability: see infographics p.9.

Technip’s proprietary equipment enhances Fluid Catalytic Cracking operations

The Fluid Catalytic Cracking (FCC) process offers refiners superior operating perfor-mance, increased profitability and on-stream reliability over a wide range of feed-stocks. In today’s modern refinery, the FCC unit processes predominantly heavier feed-stock such as atmospheric residue to produce gasoline, and propylene, a feedstock for petrochemical plants.

Technip’s center of excellence for this technology is embedded within Technip Stone & Webster Process Technology’s operating center in Houston, Texas (US). The team primarily includes engineers and technologists who have the know-how and experience to design, develop, and execute FCC projects.

Services typically begin with a process study or process design package, and evolve into basic/detailed engineering and supply of proprietary equipment. With continuous improvement a top priority, the team is working on the next generation of FCC designs, which will provide

even more flexibility for long-term profitability and process integration with petrochemical facilities. The same technological advances for grassroots FCC units can be successfully integrated in existing mature FCC units realizing benefits at reduced capital cost.

The story of a successful technology

Bringing excellence to FCC projects

The first resid FCC unit was installed in Australia in 1987.

8- 9

RISER SEPARATION SYSTEM (RS2)

Location of FCC unit in a re�neryLocation of FCC unit in a re�nery

Reactor/Disengager

Catalyst Lift Line

First Stage Regenerator

Plug Valve

Second Stage Regenerator

Regenerated Catalyst Withdrawal Well

STRIPPER PACKING

FEED INJECTORS

The packing, which Technip offers exclusively through an alliance with Kock-Glitsch, removes hydrocarbons from the spent catalyst. It increases liquid yields and reduces regenerator temperatures and emissions, resulting in better yield selectivity. The simple but innovative design is low maintenance and easy to install in any geometry. The design provides more stripping volume to increase throughput while significantly reducing steam consumption and associated utility costs.

This extremely reliable device has a unique design that maximizes the atomization and distribution of oil droplets injected into the catalyst. The result is an increase in yield selectivity, decrease of delta coke, and increased conversion at lower outlet temperature for resid and vacuum gas oil feedstocks.

This device promotes rapid separation of hydrocarbons from catalyst, minimizing post riser reactions and providing excellent operational stability. The special design is tolerant to process upsets and efficient through the full range of operation. This upgrade in unit performance pays out quickly by reducing post riser residence time and unwanted secondary cracking reactions, providing great reliability for many years.

CrudeDistillation

VacuumDistillation

Visbreaker

Mid-DistillateHydrotreating

FCC

HydrocrackingAlkylation

Isomerization

CatalyticReforming

Crude

LPG

Hydrogen

Naphtha Hydrotreating

GasolineGasoline, Aromatics

GasolineGasoline

Jet, Diesel

Jet, DieselCycle oil to hydrotreating or hydrocracking

Regenerated CatalystSlide Valve

Spent CatalystSlide Valve

Reactor Riser

StripperSteam Ring

Technip’sproprietary Resid Fluid Catalytic

Cracking R2R Technology

Technip’sproprietary Resid Fluid Catalytic

Cracking R2R Technology*

* A two-stage regeneration design with one reactor and two regenerators.

The story of a successful technology

Tomorrow-Technip-April 2016

A network of programs to optimize platforms designs

Floaters design expertise transfer throughout Group

WAMITCreate

hydrodynamic coefficients

Integrated Platform Analysis

and Design

Loadcases & PopMLTSIM

Set up and post-processing

of MLTSIM batch runs

StabiltyIntact and damaged stability analysis

RodDynRisers and Mooring coupled analyses

Integrated Riser

Analysis and Design

FREDOMFrequency Domain

hydrodynamic analysis

GenscantXStructure framing

& weights

SizerFloater sizing

MLTSIM/FMOORMulti-body

motion simulation

TM

Technip invests heavily in developing design tools for all areas of its activity. The Group has developed and validated its own software for calculating the global motions and performing the basic design of our Floating Production System platforms.

This software package, called Integrated Platform for Analysis and Design, has been extended to cover all floating platforms types and can be used to perform floater design at any of our regional offices with a minimum of training.

The integrated platform for analysis and design suite is a network of separate but related computer programs. They share a common graphical user interface and data base; manage data files for pre- and post-processing and interface with external

programs. This network is used for the design of floating platforms andtheir associated moorings,risers and umbilicals. Design includes in-situ operations (both intact and damaged), transit and installation.

Using both time domain and frequency domain methods, the program determines system performance under the influence of wind, waves and currents. And it now does this for ship shape, Spar, semi and TLP hull forms.

The network ofprograms includes programs proprietary to Technip and licensed from third parties. The integrated platform for analysis and design suite itself is proprietary to Technip.

Integrated platform for analysis and design suite overview

Analyzing complex structures

An analogous software package developed for risersIndeed, the integrated platform for analysis and design network is linked to a suite of riser design programs called Integrated Riser Analysis and Design. These programs use the wave and resulting vessel motion histories to analyze riser response and hanging

loads, interference between adjacent risers, and other loading conditions to provide riser strength/fatigue calculations and design. The integrated riser analysis and design and RodDyn programs can be run independently of the vessel motion simulation.

Today the integrated platform for analysis and design suite resides on a cloud server for Technip Group access. Newest feature is linking GENSCANTX to a solid modeler (AVEVA Marine) to complete detail design and create fabrication drawings.

10 - 11

For further information, please contact Jim O'Sullivan, Chief Technology Officer Offshore, Texas, (US). jfosullivan@technip.com

3D Illustration of the Perdido Spar

MLTSIM Platform Global Performance Analysis

TDSIM Multi-Body Motion Analysis

FMOOR Mooring and SCR Analysis

SSVR Top Tensioned Riser Analysis

The integrated platform for analysis and design suite has an expert system that provides a vessel configuration by evaluating several geometries very efficiently. This is a design standardization tool that renders a configuration matching the functional requirements of a Design Basis with the experiences and learnings from past vessel design. This suite of programs employs GENSCANTX, a steel scantling program, to convert the global configuration into a definition of internal structure is slightly indented, as specified by ABS, DNV and NORSOK standards. One of the key modules of the network is a Technip in-house non-linear time-domain motion simulator called Multiple body Simulation (MLTSIM).The motion solver is semi

empirical, meaning it is a combination of gravitational and kinetic forces defined by first/second order potential theory, and non-linear viscous forces. MLTSIM requires a system of coefficients: hydrodynamic coefficients for wave diffraction and radiation (calculated using linked WAMITTM * program), and empirical coefficients for drag and lift loads. The simulation of a surface vessel with moorings and risers requires the internal coupling of MLTSIM and a slender body Finite Element model of mooring and risers. Technip developed RodDyn that can efficiently and accurately model slender elements. The combination allows for coupled time domain simulation of the vessel/riser/mooring motions and loadings.

“We have put the integrated platform for analysis and design

suite of programs on a cloud server

so the entire Group has access”

* tool that permits the analysis of wave interactions with offshore plat-forms and other structures or vessels.

Tomorrow-Technip-April 2016

ETH-PiP is the new generation of PiP technology, which optimizes field architecture, prevents or remediates fluid blockage and unlocks reserves. This field-proven system is qualified for continuous heating over 25 years at operating temperatures up to 120°C

Follow us on

www.technip.com

Electrically Trace Heated Pipe-in-Pipe technology: a cost-effective solution

Learn more about ETH-PiP here: www.technip.com/en/media-center/brochures