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Establishment and improvement for standard system of liquefied natural gas industry Xing Yun Science and Technical Department, CNOOC Gas & Power Group

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Page 1: Establishment and improvement for standard system of ... · PDF fileEstablishment and improvement for standard system of liquefied natural. gas industry . Xing Yun. Science and Technical

Establishment and improvement for standard system of liquefied natural

gas industry Xing Yun

Science and Technical Department, CNOOC Gas & Power Group

Page 2: Establishment and improvement for standard system of ... · PDF fileEstablishment and improvement for standard system of liquefied natural. gas industry . Xing Yun. Science and Technical

CNOOC Gas & Power Group

Contents

2

0 Preface1 Establishment of National and Industrial Standard

System for LNG Profession2 Establishment of the Enterprise Standard System

for LNG Industry in CNOOC3 Collection of LNG Engineering Associated standard

Series4 Participation of International Standardization WG10

actively5 The Role of LNG Project Standard System in Project

Quality Management6 Conclusion

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CNOOC Gas & Power Group 3

Preface

As China’s demand for clean energy increasing day by day,

imports of high - quality, clean, efficient and convenient

energy resources - liquid natural gas (LNG) has become a

important way to improve and optimize china’s energy

consumption structure, as well as ensure the energy supply

security and promote the protection of eco-environment.

Since the early 90s, China National Offshore Oil Corporation

(CNOOC) start to think about the inport of LNG strategically.

Preparatory work of project management for this new

industry start later, including the research on international

LNG standards and codes.

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PrefaceLNG standard system including six parts: international standards, state laws and regulations, LNG national standards, LNG industry standards, enterprise standards and standards relating to LNG construction. It plays an important role in building jettys, terminals, storage tanks, pipelines, utilities, providing contract quality requirements of natural gas and LNG project management.In the following, I will introduce the experiences and practices that the standardization management department of CNOOC has had in the process of establishing nation/industry/ enterprise standard system of LNG while entering LNG industry.

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CNOOC Gas & Power Group

Contents

5

0 Preface1 Establishment of National and Industrial Standard

System for LNG Profession2 Establishment of the Enterprise Standard System

for LNG Industry in CNOOC3 Collection of LNG Engineering Associated standard

series4 Participation International Standardization WG10

actively5 The Role of LNG Project Standard System in Project

Quality Management6 Conclusion

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CNOOC Gas & Power Group 6

1 Establishment of National and Industrial Standard System for LNG Profession

1.1 Investigation of foreign LNG Standard System Since the world's first LNG trade appear in the mid-20th century, the countries

have attached great importance to the development of relevant standardsincluding LNG production, storage and transportation, trade, measuring andusing, enhancing HSE management, avoiding the risk of HSE and ensuring thehealthy development of the LNG industry.

In Europe, the England, Germany etc, has promulgated standards concerningthe property of LNG product, LNG standards about fire protection, LNGMaterials standards, LNG equipment and facilities standards, measurementstandards and so on.

The U.S. has its own system on LNG standardization construction. U.S.National Fire Protection Association (NFPA), American Petroleum Institute(API), American Society of Mechanical Engineers (ASME) set their ownstandards on LNG fire protection safety, LNG production, storage andtransportation, processing, LNG equipment and materials standardsrespectively.

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Japan is the largest LNG importer in the world, accounting for 40% of the total import of the world. Japan has accumulated a large number of LNG operation data. Japan Gas Association (JGS), Japanese Industrial Standards (JIS), Japan Electric Association and the Japan High Pressure Gas Safety Institutecontribute to the construction of LNG standardization respectively, and erect their own series of standards. Some of these standards has also been applied in South Korea and China Taiwan region.

Standards in these countries, especially the standards of Europe and the U.S. have been widely used in design, construction and acceptance of CNOOC’s LNG projects. It plays an important role in the beginning of China’s LNG industry.

1 Establishment of National and Industrial Standard System for LNG Profession

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According to the condition of established LNG standards in different countries, the ISO founded a LNG standardization workgroup (WG10) in November, 2006. The main work is to draft the standard for LNG facilities and materials and to coordinate the LNG standards which are famous and universal used in the world. It’s a very good method to track the international LNG standards. The three big National petroleum companies of China all send representatives to attend the WG10 steering committee.

1 Establishment of National and Industrial Standard System for LNG Profession

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The main work of WG10 workgroup is following:

a. To evaluate the need of standard and criterion of LNG in different countries.

b. To evaluate the applicability of existing international LNG standards and criterions in LNG industry.

c. To ascertain the cooperation frame of the existing LNG standards and criterions owners with workgroup.

d. To ascertain the order of standard establishment.

With the organization and coordination of WG10 LNG standard technical committee, the international LNG standard system will gradually unify and perfect, which will promote the development of standardization of Chinese LNG industry. Table 1 was The gathering standards of WG10 are from CEN、IBC、IMO、NFPA、ASME、API、IP、CSA、DIN、BS、JGA、 JIS、KHK、KLK and so on.

1 Establishment of National and Industrial Standard System for LNG Profession

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Table 1 Internationally available with the LNG industry-related standards

NO. Categories Reference Name

1 Products EN 1160:1996 General characteristics of liquefied natural gas

2

Marine Transport

IBC CodeInternational Code for the Construction and Equipment of Ships

Carrying Dangerous Chemicals in Bulk.

3 IGC Code (IMO)

International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk.

4GCC

Gas Carrier Code produced first by IMCO and subsequently by IMO. Contains a chapter 11 called “Fire protection and fire

extinction”5 EN

1532:1997Installation and equipment for liquefied natural gas -Ship to shore

interface

6

Car Transport

NFPA 52 Compressed Natural Gas (CNG) Vehicular Fuel Systems Code

7 NFPA 54 Natural Fuel Gas Code

8 NFPA 57 Liquefied Natural Gas (LNG) vehicular Fuel Systems Code

9 NFPA 30 A Motor Fuel Dispensing Facilities and Repair Garages

10 NFPA 37 Installation and Use of stationary Combustion Engines and Gas Turbines

1 Establishment of National and Industrial Standard System for LNG Profession

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Table 1 Internationally available with the LNG industry-related standards

NO. CategoriesStandard Number Name

11

Production Storage and Transporta -tion

ASME B 31.8 Gas Transmission & Distribution Piping System

12 NFPA 59A Standard for the production, storage, and handling of LNG

13 NFPA 59A:2006 Standard for the production, storage, and handling of LNG

14 CSA Z276:2001 LNG Production, Storage and handling

15 NFPA 59 Storage and Handling of Liquefied Petroleum gases at Utility Gas Plants

16 JGA Recommended practice for LNG aboveground storage

17 EN14620 Flat-bottomed, vertical cylindrical storage tanks for low temperature service,

18 DIN 4119, part 1

Above-ground Cylindrical Flat-bottomed Tank Installations of Metallic Materials

19 API Std. 2000 Venting Atmospheric and Low Pressure Storage Tanks : Non-refrigerated and Refrigerated

20CEN TC265

“Design and manufacture of site built, vertical, cylindrical, flat bottomed steel tanks for the storage of refrigerated liquefied gases with operating

temperatures between –5°C and –165°C”

21 API Std. 620 Design and Construction of Large, Welded, Low-pressure Storage Tanks

22 EN 13645:2001 Design of onshore installations with a storage capacity between 5 t and 200 t23 JGA Recommended practice for LNG in-ground storage

1 Establishment of National and Industrial Standard System for LNG Profession

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Table 1 Internationally available with the LNG industry-related standards

NO. Categories Standard Number Name

24

Facilities

JGA Recommended practice for LNG facilities, April 1986

25 API Std 2510 Design & Construction of LPG installations

26 EN 12308:1998 Suitability testing of gaskets designed for flanged joints used on LNG piping

27 EN 1473:1997 Design of onshore installations

28 EN 1474:1997 Design and testing of loading/unloading arms

29 EN 12838:2000 Suitability testing of LNG sampling systems

30 CEN TC218 “Rubber and plastics hoses and hose assemblies”

31 EN ISO 4080: 1995

Determination Rubber and plastics hoses and hose assemblies of permeability

32CEN TC342

“Metal hoses, hose assemblies, bellows and expansion joints”EN ISO 10380:2003

33 EN 12066:1997 Testing of insulating linings for LNG impounding areas

34 EN ISO 10806:2003 pipework :fittings of undulatory flexible metal tubing

1 Establishment of National and Industrial Standard System for LNG Profession

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Table 1 Internationally available with the LNG industry-related standards

NO. Categories Standard Number Name

35

Fire safetycontrol

NFPA 1 Fire Prevention Code

36 NFPA 30 Flammable and Combustible Liquids Code

37 IP Code Part 15 Area Classification Code for Petroleum Installations

38 API Std 2510A Fire and protection considerations for the design and operation of liquefied petroleum gases (LPG) storage facilities

39 NFPA 11 Low-,Medium-,and High-Expansion Foam

40 NFPA 11C Mobile Foam Apparatus

41 NFPA 13 Standard for the Installation of Sprinkler Systems

42 NFPA 15 Water spray fixed systems

43 NFPA 16 Installation of Deluge Foam - Water Sprinkler and Foam - Water Spray Systems

44 NFPA 17 Dry Chemical Extinguishing Systems

45 NFPA 18 Standard on wetting agents

46 NFPA 307 Standard for the Construction and Fire Protection of Marine Terminals, Piers and Wharves

47 NFPA 497 Classification of flammable Liquids, Gases or Vapours and of Hazardous (Classified) Locations for Electrical Installations in Chemical Process Areas

48 NFPA 921 Guide for Fire and Explosion Investigations

49 NFPA 1405 Land-Based Fire Fighters Who Respond to Marine Vessel Fires

50 EN 12065:1997 Testing of foam concentrates designed for generation of medium & high expansion foam and of extinguishing powders used on LNG fire

1 Establishment of National and Industrial Standard System for LNG Profession

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1.2 The necessity of making national standard system OF LNG1.2.1 The development of the LNG industry needs standardsThe production of the global LNG is expected to increase from 300 million tons in 2010 to 600 million tons in 2020, the related investment of the construction of new gasification plant and liquefaction plan will come to 1500 million -2000 million U.S. $ (at current prices), China is to be the important importing country in respect of LNG.

The standard will be the common language among exporters, importers, investors, manufacturers, design engineering and users. It is also the base of minimizing capital investment and ensuring safety.

At the technical level, new equipment ,new technology and new concept (marine LNG、Module design 、Floating gasification system) appear continuously, the rational selection and application need the corresponding standards and specification.

1 Establishment of National and Industrial Standard System for LNG Profession

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1.2.2 The standardization of internal LNG industry must accord with the international standard. There is mature technology and perfect standard during the LNG industry abroad. It’s a shortcut to refers to external advanced standard directly to rapidly develop and boost the level of internal LNG industry.

As the first internal LNG pilot project, extensive research survey for external LNG standard, correlative jetty, receiving terminals, storage tanks, pipelines and civilian building standard was actualized during its preliminary research, design, construction and commissioning. The LNG standard system table of our country that will become the instructor of constituting the internal LNG industry standard henceforth is compiled. During the process, the internal standard is employed if there is appropriate one. If there is not appropriate standard for LNG at home, the foreign advanced one will be cited.

1 Establishment of National and Industrial Standard System for LNG Profession

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1.3 Nation and Industry the LNG standard system tableAccording to the above guiding concept and authorized principle, especially according to the LNG project practice in Guangdong and Fujian, the work group has investigated the foreign LNG standard system systematically since 2000. The study consists of three stages. Firstly, we collected and gathered the foreign standards. Secondly, the core standards are validated and translated. What’s more, we investigated and compared the standards, and then wrote the report.

So far, we have workout the third edition < The table of Nation and Industry LNG Standard System >, as shown in table 2. In the table, the core criterion of analyzing-measuring and production-storage/transportation are shown. Also, the product’s standards and the HSE criterion which were lack in China is paid attention.

Until today, according to the system table, we have worked out several system standards of nation and industry: seven volumes promulgated, one copy on approval, nine reports for approval, one volume in formulation, three volumes in the prior study, and the others in planning collect.

1 Establishment of National and Industrial Standard System for LNG Profession

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Table2 The Nation and Industry LNG Standard System table

NO. Categories Standard Name Standard Numbershould be level

Standard Criteria

have beenadopted Code

Standard level

current state remarks

1

Common

General characteristics of liquefied natural gas GB/T 19204-2003 EN 1160:1997 IDT Release

2010 remake a plan

2Refrigerated light hydrocarbon fluids -

Sampling of liquefied natural gas - Continuous method

GB/T 20603-2006 ISO 8943 IDT Release

3 Terminology of liquefied natural gas SY/T pre-feasibility study

2010 plan

4the guidebook for drawing up

application report of liquefied natural gas project

SY/T2009plan

5

Analysis Measurement

Refrigerated hydrocarbon liquids; static measurement; calculation

procedureGB/T ISO 6578 MOD Release

Candidate 2007plan

6Refrigerated light hydrocarbon fluids -

Liquefied natural gas - Procedure for custody transfer on board

ship

GB/T ISO 13398:1997 MOD Release Candidate 2007plan

7 Standard specification for LNG density calculation models GB/T21068-2007 ASTM D4784-93 IDT Release

8

Refrigerated light hydrocarbon fluids; measurement of temperature in

tanks containing liquefied gases; resistance thermometers and

thermocouples

GB/T ISO 8310 IDT Release 2007plan

9Refrigerated light hydrocarbon fluids;

calibration of membrane tanks and indepedent prismatic tanks in ships; physical measurement

GB/T ISO 8311 IDT Release 2007plan

10Refrigerated light-hydrocarbon fluids;

calibration of spherical tanks in ships; part 1: stereo-

photogrammetry

GB/T ISO 9091-1 IDT Release Candidate 2007plan

Notes: In the sheet of standard coherence and standard codes adopted IDT-equate standard adopted , MOD- modified standard adopted GB-national standard SY-industrial standard, others are criterion codes

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Table2 The LNG standard system table of nation and industry

11

Analysis Measure-

Ment

Refrigerated light hydrocarbon fluids -- Measurement of liquid levels in tanks containing liquefied gases --

Electrical capacitance gaugesGB/T ISO 8309 IDT Be

released 2007 plan

12Refrigerated light-hydrocarbon fluids -- Measurement of

liquid levels in tanks containing liquefied gases --Float-type level gauges

GB/T ISO 10574 IDT ReleaseCandidate 2007 plan

13Refrigerated light hydrocarbon fluids; calibration of

spherical tanks in ships; part 2: triangulation measurement

GB/T ISO 9091-2 IDT

14Refrigerated light hydrocarbon fluids -- Measurement of

liquid levels in tanks containing liquefied gases --Microwave-type level gauge

GB/T ISO 13689 2010 plan

15Refrigerated light hydrocarbon fluids - General

requirements for automatic level gauges - Part 1: Gauges onboard ships carrying liquefied gases

GB/T ISO 18132-1-2006 IDT 2011 plan

16

Refrigerated light hydrocarbon fluids - General requirements for automatic level gauges - Part 2: refrigerated Level gauge for shore-based storage

tank

GB/T ISO 18132-2-2006 IDT 2011 plan

17

Production Storage

and Transporta

-tion

Production, storage and handling of Liquefied Natural Gas (LNG)

GB/T 20368-2006 NFPA 59A IDT Release

(Amendment )

18 Liquefied Natural Gas (LNG) Vehicular Fuel Systems Code GB/T NFPA 57 IDT pre-feasibility

study 2009 plan

19 Installation and equipment for liquefied natural gas -Design of onshore installations GB/T EN 1473 MOD examine and

approve 2007 plan

20 Installation and equipment for liquefied natural gas -Ship to shore interface GB/T EN 1532 IDT Release

Candidate 2007 plan

21 Design and manufacture of site built, vertical, cylindrical, flat-bottomed steel tanks (Part 1~5) GB/T EN 14620 MOD constituted 2009 plan have

made known

NO. Categories Standard Name

Standard Number/

should be level

Standard criteria have been adopted

Code Standard

levelcurrent state remarks

Notes: In the sheet of standard coherence and standard codes adopted IDT-equate standard adopted , MOD- modified standard adopted GB-national standard SY-industrial standard, others are criterion codes

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22

Production Storage

and Transporta

tion

Design and Construction of Large, Welded, Low-Pressure Storage Tanks

SY/T0608-2006

API Std 620:2002 MOD Release

23 Structural use of concrete GB/T BS 8110 IDT

24

FIP 1993 Report of the International Association of Prestressed Typical design specification of prestressed

concrete structures

GB/T CEB-FIP:1990 IDT

25 Design Specification for Liquefied Natural Gas Port and Jetty

JTJ 304-2003

Release(Amendment )

Industry Standard

26 Tank containers for liquefied natural gas JB/T 4780-2002 Release Industry

Standard

27Installation and equipment for liquefied

natural gas - Design and testing of loading/unloading arms

GB/T BS EN 1474-1997 IDT 2009 plan

28 Liquefied Natural Gas Underground Storage Tank

29

safety

Technical safety code for liquefied natural gas receiving terminal

SY/T 6711-2008 Release

30 Technical safety code for liquefied natural gas receiving terminal SY pre-feasibility

study

31 Safety operation specification for liquefied natural gas Port and Jetly SY pre-feasibility

study

32 Periodic inspection specification for terminal of liquefied natural gas SY pre-feasibility

study

33 energy-saving make use of cold energy SY/T

NO. Categories Standard Name Standard Number/

should be level

Standard criteria

have been adopted

Code

Standard level

current state remarks

Notes: In the sheet of standard coherence and standard codes adopted IDT-equate standard adopted , MOD- modified standard adopted GB-national standard SY-industrial standard, others are criterion codes

Table2 The LNG standard system table of nation and industry

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Contents

20

0 Preface1 Establishment of National and Industrial Standard

System for LNG Profession2 Establishment of the Enterprise Standard System

for LNG Industry in CNOOC3 Collection of LNG Engineering Associated standard

series4 Participation International Standardization WG10

actively5 The Role of LNG Project Standard System in Project

Quality Management6 Conclusion

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2 Establishment of the Enterprise Standard System for LNG Industry in CNOOC

2.1 LNG Enterprise Standard System Compilation

2.1.1 System Compilation

LNG Project management could be categorized into:

Previous Stage which consists of Market Investigation, Pre-feasibility Study, Feasibility Study and Project Establishment Application,

Middle Stage which consists of FEED, Detailed Design and Construction,

Later stage which consists of Examination and Acceptance and Commissioning.

Current oversea standard and domestic project associated standard can’t satisfy the requirements of all the phases of LNG project, especially lacks relevant standards of early stage, middle and later stage of project management which has Chinese characteristics. CNOOC takes the lead to invest in construction of the first several LNG projects of China and gained rich experience, which lays foundation for the compilation of enterprise standards.

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2.2 CNOOC LNG Enterprise Standard System

2.2.1 LNG Enterprise Standard System Table

With respect to the detailed part of Technology, Management and Work, especially those relating to quality management program and detailed technology requirement of LNG project plan, it can only be accomplished by reinforcing Enterprise Standardization based on enterprises’ actual situation.

Target market investigation of LNG project location, project application report, project management, engineering design, bidding, project acceptance and post-appraisal etc. all lack national and industry standard.

Therefore, we compile CNOOC’s LNG Enterprise Standard System(Table 3) in the hope of establishing enterprise standards available for reference for all parts from project establishment application to its completion and meet the requirement of industry development.

2 Establishment of the Enterprise Standard System for LNG Industry in CNOOC

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Type Standard Name Year of Completion

Foundation type

1.Standardization Management Promulgated

2.Standard Compilation Implementing Regulations Promulgated

3.LNG Project Management Manual 2009

Project Prophase Study

4.LNG Project Opportunity Study Report Compilation Instructions

planning

5.LNG Project Pre-feasibility Study Report Compilation Instructions

planning

6.LNG Project Feasibility Study Report Compilation Instructions

2009

7. LNG Project Establishment Application Report Compilation Instructions

Promulgated

8. LNG Project Safety Pre-Evaluation Report Compilation Instructions

Promulgated

Design Phase

9.LNG Receiving Terminal Layout planning10.LNG Project Engineering Preliminary Design

Documentation Compilation Instructionsplanning

Table 3: CNOOC LNG Enterprise Standard System

2 Establishment of the Enterprise Standard System for LNG Industry in CNOOC

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Type Standard Name Year of Completion

AcceptancePhase

11.LNG Project Acceptance Regulations —The 1st Part Receiving Terminal Engineering

Promulgated

12. LNG Project Acceptance Regulations —The 2nd Part Harbour Engineering (2008)

promulgated

13. LNG Project Acceptance Regulations —The 3nd Part Pipeline Engineering

promulgated

14. Evaluation Report Compilation Instructions of LNG Trunkline Completion and Acceptance

Health, Safety and Enviroment

15.LNG Project Safety Technology Regulations Promulgated

16.LNG Project HSE Management Manual

Economic Evaluation Type

17.Compilation Instructions of LNG Project Feasibility Study of Investment Budget

promulgated

18.Compilation Instructions of LNG Project Feasibility Study of other Investment Budget

promulgated

19.LNG Project Investment Budget Index 2009

20.LNG Project Economic Evaluation Methods and Parameters

2009

21.LNG Project Engineering Quantity Lists Pricing Model 2009

2 Establishment of the Enterprise Standard System for LNG Industry in CNOOC

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Contents

25

0 Preface1 Establishment of National and Industrial Standard

System for LNG Profession2 Establishment of the Enterprise Standard System

for LNG industry in CNOOC3 Collection of LNG Engineering Associated standard

series4 Participation International Standardization WG10

actively5 The Role of LNG Project Standard System in Project

Quality Management6 Conclusion

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3 Collection of LNG Engineering Associated Standard Series

3.1 LNG Engineering Associated National Legal System Structure

All the LNG Engineering Construction in China region must be carried out under Chinese relevant laws and regulations framework and enforceable. Considering the related contents of LNG introduced project. Laws and regulations at national and municipal level which must be obeyed includes health, safety, environment, engineering construction quality specifications, bylaws etc. The frame is as following diagram .

National Laws and Regulations

Health Type Safety Type Environment Protection Type

Engineering Construction Quality Management

Regulations Type

Engineering Construction Project Management

Regulations Type

Engineering Construction General Contracting Management

Regulations Type

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3.2 Standard System Classification

As the regular LNG engineering includes four parts: receiving terminal (including tank), jetty, pipeline, and utilities, the classification will be carried out in accordance with function with this as the main line, e.g.

Jetty falls into: general chart, shipping, navigation channel, breakwater, jetty engineering, navigation channel safety;

Receiving terminal falls into: gasification technology, tank, equipment and installation, materials, manifold, metering;

Pipeline falls into: pipeline engineering, pipeline crossing, pipeline anticorrosion, electric communication, foundation anti-earthquake, fire alarm;

Utilities falls into: construction structure, water supply and drainage, heating and ventilating, building lighting, safety and environment, construction foundation etc.

The following could be divided into products, design and construction. LNG professional standards are 21, jetty 22, receiving terminal 661, tank 13, pipeline 98, HSE 328(see chart 2), altogether 1140.

3 Collation of LNG Engineering Associated Standard Series

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Standard System Classification

receiving terminal jetty pipeline utilities

3 Collation of LNG Engineering Associated Standard Series

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Contents

29

0 Preface1 Establishment of National and Industrial Standard

System for LNG Profession2 Establishment of the Enterprise Standard System

for LNG Industry in CNOOC3 Collection of LNG Engineering Associated standard

series4 Participation International Standardization WG10

actively5 The Role of LNG Project Standard System in Project

Quality Management6 Conclusion

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4 Participate International Standardization WG10 actively

Conducting LNG Standard System Study is the necessity in Chinese LNG production and market, and it’s needful overseas and domestic situation development.

The situation requires LNG standard system to get integrated into international criteria, adjust correspondingly and create China’s own LNG standard system, and makes it the indispensable, internationalized and competitive LNG standardization guiding documents in overseas and domestic oil and gas markets. It can be utilized to speed up LNG industry and standardization process and guide state, industry and enterprise LNG standards enactment and revision in future.

In 2006, ISO set up LNG working team in T67 technology commission which is of the same characteristic with our current LNG sub-technology commission. Therefore, taking part in WG10 actively is very helpful.

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Erect internationalized Chinese LNG Standard System is a systemized project, “Standard Selection” must be based on “Standard Selection System” and try to keep consistent with LNG standard system with “Standard Selection”, especially those regional standards selection.

During the standard selection, process, selecting from which country and which series is always the difficult facing us.

Developed countries have a variety of LNG standards, such as European, American, British, Norway, French, Japanese, and so on. Also they have ISO、EN、API、ABS、DNV、IEEE、ASTM、ASME, etc.

Although they are dealing with the same technical issues, some of these standards are stricter in some aspects, others are stricter in some other aspects.

How to select to lower engineering costs as well as mitigate risks and confine the risks to certain level requires a great deal of investigation, there is no exception with the standard selection of System.

Japanese LNG standards system, whether it’s advancement, safety or its practicality or effectiveness, is non-disputable, but it can’t be used for it has its own system and not consistent with ISO and European and American standard system, so we have to abandon it as the reference standard.

Of course, as previously stated, concrete enterprise should use them as reference when they are formulating certain individual standards or state and industry standards.

4 Participate International Standardization WG10 actively

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As China is the member country and permanent member of ISO, together

with the fact that China is at preliminary stage of building LNG project based

on ISO and European and American .So we decide to take international

standard and overseas advanced standard like ISO, EN, etc. to erect

China’s own LNG standard system.

Therefore, participating ISO/T67/WG10 is the main road to get our current

LNG standardization internationalized.

4 Participate International Standardization WG10 actively

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American standards

European standards

Japanese standards

Other countries and areas standards

ISOstandards

4 Participate International Standardization WG10 actively

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Contents

34

0 Preface1 Establishment of National and Industrial Standard

System for LNG Profession2 Establishment of the Enterprise Standard System

for LNG industry in CNOOC3 Collection of LNG Engineering Associated standard

series4 Participation International Standardization WG10

actively5 The Role of LNG Project Standard System in Project

Quality Management6 Conclusion

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5 The Role of LNG Project Standard System in Project Quality Management

5.1 The Role of LNG Project Standard System in Project Quality Management

5.1.1 The main Contribution of International/National LNG Professional Standard

a. LNG Resources

LNG Resources are the foundation of project establishment application.

How to secure qualified LNG resources needs to regulate the

specifications by standard. Relying on LNG General Specification by

ISO resolves the issue of Specification and usage safety during

resources selection and provides important reference index for

resources negotiations.

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b. LNG Tank ConstructionLNG Tank is the key part of Project. China has never been involved in this

engineering before and lacks such kind of standards. Relying on Cryogenic Temperature Vertical Flat Bottom Cylinder Type Tank by ISO EN standard and Design and Construction of Large Sized Welding Low Temperature Tank by American API standard and LNG Equipment and Installation by European Union standard provide valuable design, construction and acceptance regulations for LNG Project key engineering.

c. LNG MeasurementDuring commissioning process, LNG measurement must be consistent with

international standard. We not only should pay attention to the LNG volume and weight measurement but also should focus on LNG energy value measurement, for different LNG composition could influence the energy value is the main deciding factor of price. Currently, energy measurement is generally used internationally and we select from internationally used measurement standard so as to cooperate and communicate with international counterparts more easily.

5 The Role of LNG Project Standard System in Project Quality Management

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5.1.2 The Main Contribution of CNOOC LNG Enterprise Standard a. LNG Project Prophase Study

As China is different in its national conditions, we don’t have any oversea standards for reference when conducting LNG project prophase site selection and report to the national competent departments for approval.

Enterprise standards which are being compiled and developed are: LNG Project Site Selection Report Compilation Instructions, LNG Project Pre-feasibility Study Compilation Instructions, LNG Project Feasibility Study Compilation Instructions and LNG Project Application Report Compilation Instructions, which regulate the compilation contents and format of the prophase serial report and have guiding significance to prophase work.

5 The Role of LNG Project Standard System in Project Quality Management

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b. Project Management LNG project management is a comprehensive management process relating to project progress, budget, quality and HSE. We can’t 100% copy overseas project management experience and practice, and have to summarize and improve based on our own project practice so that we can use it in our future LNG Project. We are in the process of compiling LNG Project Management Manual based on Dapeng and Fujian LNG Project practice, which will offer reference for future LNG project quality management.

c. LNG Project AcceptanceAfter investigation and project running, we find post evaluation of LNG project engineering completion and acceptance and LNG trunkline completion and acceptance also has no international reference. Therefore, we start to compile enterprise standards like LNG Project Engineering Completion and Acceptance and LNG Trunkline Completion and Acceptance based on Dapeng an Fujian LNG project practice, which will provide method and tools for project later stage quality management . Currently, the receiving terminal, jetty and pipeline separate index of LNG Project Engineering Completion and Acceptance has been submitted to CNOOC headquarter for review and will be released.

5 The Role of LNG Project Standard System in Project Quality Management

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In short, International/State/Industry Standard and Enterprise standard

system cover different aspects of LNG project phases.

Currently, the international, state , industry and enterprise standard

system serials with respect to jetty, receiving terminal, pipeline and

utilities basically cover each engineering and each phases of LNG

introduced project quality management .But state standard and

enterprise standard still need to be improved, especially the industry

standard need each enterprise’s companies who come into the LNG

industry concerted efforts.

5 The Role of LNG Project Standard System in Project Quality Management

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Contents

40

0 Preface1 Establishment of National and Industrial Standard

System for LNG Profession2 Establishment of the Enterprise Standard System

for LNG industry in CNOOC3 Collection of LNG Engineering Associated standard

series4 Participation International Standardization WG10

actively5 The Role of LNG Project Standard System in Project

Quality Management6 Conclusion

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6 ConclusionDuring the pioneering period of China’s LNG industry, selecting foreign standards and regulations suitable to China’s national conditions and establishing state standard system and then directly select standard or modify selected standard by extensive investigation and comparison of international industry standards is the shortcut to compile Chinese state standards.

From actual situations of LNG project quality management and based on the technical and management experience, compiling LNG enterprise standard at this right time is the proved and effective way to remedy the shortage of state standards and overcome complex process which is characterized by long process from project establishment application to approve and release, and effective way to supplement enterprise standard of LNG project management in time.

Industry standards is the achievement reached by all the enterprises which has gained access to LNG industry. Industry standards is the regulation to regulate industry technology and management behavior, and the inevitable way to expedite speedy development of China’s LNG industry.

In a word, the improvement of China’s LNG industry relies on the establishment and perfection of state, industry and enterprise LNG standards.

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THANKS FOR YOUR ATTENTION!