Ir. Ikhwan Yussoff, PEng. MIEMTechnical Professional, Front End Engineering & Design

Group Technical Solutions, Project Delivery & TechnologyPETRONAS

OFFSHORE TECHNOLOGY AND OPERATIONS (OTO)SESSION NUMBER : 18 - SUBSEA AND OFFSHORE TECHNOLOGIES

ABSTRACT NUMBER : 1133PETRONAS FLOATING LNG - COMPLETING THE LNG VALUE CHAIN THROUGH TECHNOLOGY

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1. PFLNG – The Project Development Background2. PFLNG – The Overview & Business Opportunity3. Why Floating LNG ?4. PFLNG Key Design Parameters5. Project Development Initiations6. PFLNG Technology Screenings7. Possible Offshore Configurations8. Design Selection Criterias9. Key Technology Selections10.PFLNG Construction Sequence11.Safety Considerations12.Advantages & Challenges13.Conclusion

Table of Contents

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Since 2006, PETRONAS has considered many options to monetise the small and stranded gas fields

GTL SSLNG

NGHCNG

TECHNOLOGYOPTIONS TO MONETISE SMALL GAS

FIELDS

FLNG

Gas to LiquidSmall-scale LNG

Liquefaction Plant

Natural Gas HydratesCompressed Natural Gas

Floating LNGCompression ratio : 1/600

FLNG Final Investment Decision (FID) Current Progress Project Status

PFLNG 1 March 2012 100% In Operation

PFLNG 2 January 2014 90% Under Construction

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Floating LNG (FLNG) is:

• An integrated LNG floating production, storage and offloading (FPSO) unit

• Stationed offshore at a gas field to extract natural gas from the wellhead and processed into liquefied natural gas (LNG)

• The produced LNG is stored in the FLNG containment system and is offloaded directly into LNG carriers offshore

• Solution to monetise stranded gas field or as an early production option

• To be proven operationally and may be a widely used solution for future LNG production

Changing the traditional LNG Landscapes

Internal

Gas Production Liquefaction ShippingStorage &

RegasificationOffshore pipelineStorage & offloading

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Global FLNG Projects Overview

Field Location Operator Capacity (Mtpa)

Kanowit Malaysia PETRONAS 1.2

Rotan Malaysia PETRONAS 1.5

Prelude Australia SHELL 3.6

Coral Mozambique ENI 3.4

Offshore Kribi Cameroon PERENCO 2.0

GOM US Gulf DELFIN LNG 13

Etinde Africa NEW AGE LNG 1.2

Fortuna Equatorial Guinea OPHIR 2.2

Browse Australia WOODSIDE 10 - 12

Abadi Indonesia INPEX 2.5

Bonaparte Australia GDF SUEZ 2.3

Cash/ Maple Australia PTT 2

Source: LNG World Shipping, June 2017

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A business opportunity to unlock and monetise stranded gas fields via FLNG

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The resource may be too remote or “far” from a market for natural gas, where construction of a pipeline prohibitively expensive due to seabed condition or “water depth”.

What is stranded gas?

How far is far?

How deep is deep?

In the case of PFLNG, it is fair to define more than 150km from shore line as “FAR”

In the case of PFLNG, it is fair to have more than 200m water depth as “DEEP”

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LNG – Onshore vs Offshore

Onshore Offshore

CAPEX (excluding

production systems)

Extra cost for land, pipeline, jetties, infrastructure

One facility at gas location and direct shipping to LNG buyers

EIA and Permitting Longer process and potentially area limitations

Simpler and easier process expected for offshore locations

Installation & Abandonment Permanent installation Relocatable offshore floating units

Screening of Locations

Limitations by suitability of seafronts, water depth etc.

Can be located at source even if remote area, few restrictions

Homeland Security Close to the population Lower risk, less exposure to public

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Physical Dimension of PFLNG1 & PFLNG2

PFLNG Satu

LBP:321m

LBP: 300m

450

400

350

300

250

200

150

100

50

PETRONAS Twin Towers PFLNG Dua

Level 75

Level 80W : 60m W : 64m

Height (m)Weight PFLNG1 PFLNG2

TS (MT) 46, 500 50, 000

Hull (MT) 85, 000 102, 000

Total (MT) 131, 500 152, 000

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Parameters PFLNG 1 PFLNG 2

Type Shallow Water Deep Water

Water Depth 70-200m 500-1500m

Hull Size 300 m (L) x 60 m (W) x 33 m (D) 333 m (L) x 64 m (W) x 30.5 m (D)

Tonnage 131500 tonnes 152000 tonnes

Train Capacity 1.2 MTPA (200 -230 mmscfd) 1.5 MTPA (270 -300 mmscfd)

Distance from shore 200km 180km

PFLNG Key Design Parameters

TurretLivingQuarter

Inlet & Agru

Liquefaction

Utilities

Flare

Mooring chain

Helideck

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PFLNG 1 & PFLNG 2 Current Picture

Internal

PFLNG1

PFLNG2

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Conceptual DesignConcept selections of major PFLNG components:

• type of LNG process systems• type of cargo containment • type of LNG transfer system• type of mooring system

Front End Engineering DesignDevelopment of detailed PFLNG Project Specifications and Design Basis Memorandum (DBM).

Project Development Initiations

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PFLNG1 technology screening processes prior to receiving Approval in Principal (AiP) during FEED

Loading Arms

Process Plant

LNG Tanks

Turret

Combinationof proven

components

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Possible Configurations

1) Connecting to Central Processing Platform (CPP)

2) Full Well Stream

PLETSeabed Gas Pipeline

Central Processing Platform

FLNG

Satellite Platform

Satellite Platform

Riser

Reservoir

Reservoir

Mooring lines

PLETSeabed Gas Pipeline

FLNG

Riser

Reservoir

Mooring lines

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• Inherent safety design

• Production capacity and field development strategy

• Process robustness, efficiency and reliability

• Proven operational experience on onshore LNG Plant

• Research and development on marinisation

• Sea state conditions (stability and structural integrity)

• Relative sizes of FLNG and LNG Complex

Key Selection Criterias

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• Turret & Mooring System

• Acid Gas Removal (AGR) Process

• Liquefaction Process

• Cargo Containment System

• Marine Loading Arm

Key Technologies

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• Function: to station-keep the FLNG – weathervane• External turret is employed

Turret & Mooring SystemKey Technologies

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• Function: to remove contaminants

• Key parameters considered:

− Reservoir gas compositions. E.g: Could be divided in phases depending on field specific:

Phase 1 = 10 mol% CO2

Phase 2 = 20 mol% CO2

− High availability (marinisation) and other considerations due to motion

− Smaller foot print

− Available technologies such as amine, membrane & hybrid

Acid Gas Removal (AGR) ProcessKey Technologies

Source: UOP/ BASF

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• Function: to liquefy the natural gas

• Several technologies considered from various technology providers; Dual N2, C3/MR, Cascade etc.

• Redundancy for increased availability and robustness

• Rapid ramp-up

• Safety consideration

• N2 is selected due to lean gas field

Liquefaction ProcessKey Technologies

LNG

WarmExpander

MiddleExpander

ColdExpander

Natural Gas

Nitrogen Refrigeration

Source: APCI

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• Function: to store the LNG

• Available technologies: semi-prismatic, moss, membrane etc.

• Considerations:

− Least susceptible to sloshing and Structural Integrity

− Footprint, weight & vessel displacement

− Cost competitiveness

− Operating cost and boil off gas (BOG) efficiency

− Shipyard capability and constructability

Cargo Containment System Key Technologies

Source : GTT, IHI and Moss

Membrane GTT Mark III

Membrane GTT No 96

Independent Moss Type

Independent IHI-SPB

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• Function: to transfer the LNG into the LNGC• Marinised loading arm is employed

Marine Loading Arm Key Technologies

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OFFLOADING SYSTEMS

Side-By-Side

Flexible Aerial Hose

Loading Arm

Tandem

Aerial Hose Floating Hose

Highlight on PFLNG1 Offloading System Screening

Steel Cutting Component Fabrication Pre-outfitting Block Painting

Pre-erection & Super Block Outfitting

Keel LayingHull Launching & Quay Side Outfitting

Block Assembly (~8 weeks) Pre-Outfitting (~2 weeks)

~2 weeks

Pre-Erection(~2 weeks) Super Block Outfitting (~8 weeks)

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Completing Hull Erection from Steel Cutting to Dock Erection

Steel Cutting Assembly & Pre-PE*Block Stage Outfitting

Pre-outfitting*Before Turnover Outfitting

Block Painting

Turnover & PE*Turnover, Outfitting

and Pre-erection

Module Outfitting*Deck Stage

Equipment Installation & Outfitting

Module Outfitting*On Module stage

Ready for Lifting

Assembly (~10 weeks) Pre-Erection (~2 weeks)

~6 weeks ~3 weeks

Turnover of Deck (~1 day) Turnover Outfitting (~2 weeks)

Pre-Erection (~1 week)

Module Outfittin (~10 weeks)

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Completing Topside Erection from Steel Cutting to Lifting Readiness

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Highlights on latest equipment/ technology used in PFLNG.

Safety Considerations

FROG personal transfer systemDeck Integrated Fire Fighting

System (DIFFS)

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• Small and accessible to stranded gas fields

• Faster overall Project schedule as compared to conventional grass root facility

• Early Production System (EPS) for gas

• Mobile and re-locatable

Advantages and where FLNG is applicable

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• No track record / reference

• Marinisation of topside equipment

• Towing window due to typhoon

• Feed gas composition vs. process design envelop

• Multi-product handling (LNG, condensate, LPG if any)

Challenges in the development of FLNG

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• FLNG is a breakthrough technology and an industry game changer. It requires bolddecision in becoming the pioneer

• FLNG signifies technology advancement solution which adds value to marginal andstranded offshore gas resources, which otherwise would be uneconomical to develop viaonshore LNG

• PETRONAS FLNG will become a reference/ benchmark for future projects

• Though all aspects of risk have been taken into account and evaluated at design phase,we are consolidating the lessons learn and best practices of operating the facility

• Adhering to regulatory requirements are vital in achieving operations excellence

Conclusion

THANK YOUIr. Ikhwan Yussoff, PEng. MIEM

Technical Professional, Front End Engineering DesignGroup Technical Solutions, Project Delivery & Technology

PETRONAS

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