LNG; the clean, flexible and safe energy source. LNG Forum/LNG_Eric... · LNG; the clean, flexible and safe ... Roof insulation 8. Suspended deck 9. 9%Ni inner shell 10. Insulation

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Erik Skramstad07 September 2010

LNG; the clean, flexible and safe energy source.Overview of the LNG chain in general and import terminals in particular.

© Det Norske Veritas AS. All rights reserved.

LNG; the clean, flexible and safe energy source.

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ObjectivesProvide factual information on advantages and challenges with LNG as energy source

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Contents of the presentationWhat is LNG

Historical overview and the LNG market

The LNG Chain

The import terminal

Safety aspects

Rules and regulations

Success factors



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Natural Gas, a clean and attractive fuel

30

5North America

5 6South and Central

America

7

51

Middle East

23

7Europe & Eurasia

39

Africa

816

Russia

23

6Asia Pacific

Percentage of world total oil & gas consumptionreserves

Source: BP Statistical Review of World Energy 2005

Proved reserves of oil and natural gas – Generally taken to be those quantities that geological and engineering information indicates with reasonable certainty can be recovered in the future from known reservoirs under existing economic and operating conditions.

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The transportation challenge

Natural GasAtmospheric pressure

-10ºC to +30ºC0.75 kg/m3

Cool downand condense

Compress

CNG150-250 bar

-163 oC450 kg/m3

Pipelinep=100-150 bar75-100 kg/m3

LNGAtmospheric

-163 oC450 kg/m3



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LNG is a mature and well known product

Historical LNG trade

0

20

40

60

80

100

120

140

160

180

200

1940 1950 1960 1970 1980 1990 2000 2010

10E9

cub

ic m

eter

“Oil crises”

Oil supply concerns

“Kyoto”

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What is LNGCondensed natural gas

Volume reduced by factor 600 for transportation

LNG is a cryogenic hydrocarbon liquid.- Contains mainly methane with traces of LPG, and Nitrogen- SO2, CO2, H2O, C6+ and other contaminants removed to allow for cooldown without frost formation, lean

fuel.- Normally stored at atmospheric pressure where it boils at -160 deg C- Heat from surrounding will cause boil off. If boil off is contained the pressure and temperature will rise.

Alternatively the boil off can be reliquefied.

Density of LNG is appr. 450 kg/ m3

Energy content of 1m3 LNG corresponds to 0.65 m3 diesel

Natural gas is flammable (as all hydrocarbons)

Natural gas is non toxic

Cold natural gas is heavier than air. At approximately -100oC it will be buoyant and rise.



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Units and conversionsSome energy conversions

1 MMBtu = 1055 MJ = 293 kWh

1 m3 LNG contains 20 MMBtu of energy

1000 ft3 natural gas contain approx. 1 MMBtu of energy

1 ton LNG =44 MMBtu=13 GWh

1 shipload of LNG (150 000 m3) contains 900 GWh of energy

Units

mmscf million standard cubic feet

TCF 1012 cubic feet

MMBtu million British thermal units

BCM Billion standard cubic meters

Sm3 standard cubic meter, 0°C at 1 atm

mtpa million tones per annummmtpa

mt metric tonnes

TWh 1012 Wh

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There are few large LNG exporting regions

Main LNG exporting countries:

Middle East (Qatar, Oman, UAE)

Asia (Indonesia, Malaysia, Brunei)

Australia (NWS)

Africa (Nigeria, Algeria)

South America (Trinidad & Tobago)

BP Statistical Review of World Energy 2008



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The LNG MarketThe history- Growing volume and price over 40 years- Volatile spot prices- LNG is cheap compared to other clean fuels

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The LNG MarketThe future

- Increasing production capacity- Reduced demand in US- Increased demand in Europe, China, India- Increased use as transportation fuel

World LNG production capacity

0

50

100

150

200

250

300

350

400

450

500

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

year

[mill

ion

tons

]

Source: LNG Journal Dec 2009 Source: GlobalData Oct 2009

Australia mega trains

Other Asia: Indonesia, PNGOther: FLNG, arctic, stranded



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The LNG value chain

Sub-surface

Subsea

Piping transportation (multiphase and gas)

Production facilities Transport vessel (LNG carriers)

Liquefaction and storage

Import terminal: re-gasification and storage

End-user(gas distribution/ power generation)

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LNG liquefaction plants

Photo: Eiliv Leren, Statoil

Snøhvit LNG

Atlantic LNGAbu Dhabi LNG

Ras Laffan Port



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The elements of an LNG Plant

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The liquefaction plant



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LNG Liquefaction, the ideal process

Natural Gas stream

Refrigerant stream

Heat exchanger

-170

-150

-130

-110

-90

-70

-50

-30

-10

10

Natural gasRefrigerant

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LNG block flow diagram

Source: Suhkri, T., Hydrocarbon Engineering, February 2004



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The storage tanks

Key issues- Contain liquid- Contain gas- Minimise heat

ingress

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Typical tank design (Mitsubishi)4. Concrete shell

Prestressed concrete wall is a LNG-tight design and monolithic connections are made between wall and roof, wall and bottom.

5. Concrete bottom slabReinforced concrete bottom slab with piles is the foundation of the tank.

6. Piles

7. Roof insulation

8. Suspended deck

9. 9%Ni inner shell

10. InsulationTypically perlite

11. Inner linerVapor barrier

12. 2nd barrier

1. Steel roof linerVapor barrier

2. Suspension rodsFor inner roof and insulation

3. Concrete RoofA concrete roof has the advantage of protection from heat from adjacent fires and from the impact of flying objects



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The jetty

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Loading operations



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Marine Loading Arms

Marine Loading Arms are now a standardized equipment for LNG transfer

The load carrying structure is separated from the cargo piping

Swivel joints in the MLA allow both carriers to move independently in any direction (6 degrees of freedom)

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LNG shippingIn 1957, Constock (Conoco and Chicago Stockyards) + North Thames Gas Board started a LNG seaborne transportation feasibility study

This resulted in the conversion of a cargo ship which was named “Methane Pioneer”

“Methane Pioneer”, 1959 - Lake Charles to Canvey Island



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The LNG carrier fleetA total of 350 carriers are today in operation

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IGC code. Design philosophies Type A Tank.- Containment redundancy with two

complete barriers.

Type B Tank- Enhanced reliability of primary

barrier (design, quality control, inspection)

- Partial secondary containment capable of containing credible leak for min 15 days.

Type C Tank- Primary containment designed

according to pressure vessel codes- No redundancy and secondary

barrier required.



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MOSS Type Containment System

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Membrane Cargo Containment SystemGT NO96

GT NO96



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Building PrincipleGT NO96

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Receiving terminalsOverview of installations

Safety aspects

Rules and regulations

Key success factors



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Regasification Systems

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Vaporizer Types (NFPA 59A)Heated vaporizers: Vaporizers which obtain heat from combustion of fuel, electric power, or waste heat

Integral Heated Vaporizers : Vaporizers where the heat source is integral to the vaporizing exchanger(e.g. submerged combustion vaporizers)

Remote Heated Vaporizers : Vaporizers where the primary heat source is separated from the actual vaporizing exchanger and heat is transmitted via an intermediate fluid (e.g. sea water vaporiserz)

Ambient Vaporizers : Vaporizers which obtain their heat from naturally occurring heat sources, such as seawater

Process Vaporizers : Vaporizers which derive their heat from other thermodynamic or chemical processes.



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Open Rack Vaporizer (ORV)

WaterRelatively low Opex

Efficiency depends on initial water temperature

Susceptible to freezing

Large throughput of water

Needs addition of biocide(100% mortality)

Localized reduction ofseawater temperature at discharge

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Submerged Combustion Vaporizer (SCV)

High thermalefficiency (95%)

small sizecompared to ORV

Water bathrequirestreatment

Atmosphericemissions (NOx )



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Vaporisers and cold energy - Osaka Gas utilises cold energy

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Safety aspectsWhat is LNG characteristics

- Temperature- Brittle fractures and frostburns- Cold gas is dense, buoyant before it is diluted to UFL

- Flammability- Like all Hydrocarbons- Increasing flame velocity (and explosion risk) from c1 to c4

- RPT- Rollover- Business disruption and image

Layout- Gas and liquid releases- Fire and explosion escalation

Cargo handling and storage - Leaks- Rollover- RPT- Pressure control

Docking LNG carriers- Collisions- Transfer operations- BOG handling



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Safety challenges for LNGMain issue is safety

Initiating events- Releases from NG stream. Releases of other HC - Large inventories, long release durations

Potential consequences- Fire and explosions

Impacts- On personnel- On third party facilities and personnel- Business disruption and image




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Safety challenges for LNGThe QRA approach

System definition

Hazard identifcation

Frequency analysis Consequence modelling

Risk presentation

Evalauation using risk criteria

Input to safety management

Selection of risk reducing measures






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Safety challenges for LNGRollover

Caused by unstable stratification of LNG in storage tanks due to mixing of cargoes with different densitiesAged LNG can loose light components in surface layer

When the surface layer becomes to dense the content can “rollover” causing rapid evaporation of “Warm” LNG from the bottom layers.

RPT (Rapid Phase Transition)

Instantaneous superheating of LNG spilled in water.

In theory possible high pressure pulses

Observed in experimental spills (loud noises, pressure pulses)

Damage to solid structures never observed and not reported during jettysoning of LNG nor fire tests with LNG on water.




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Safety challenges for LNGSolution:

Design for credible events

Eliminate major collisions

Distribution of Striking Ship SpeedsHARDER Data, 344 Colision Cases

0

20

40

60

80

100

120

0-4 4-6 6-8 8-10 10-12 12-14 14-16 16-18

Ship Speed Intervals (knots)

No. o

f Col

lisio

n C

ases






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Safety challenges for LNGMain concerns for Cargo transfer

Reliability of operation

Occupational accidents during berthing and connection

Loss of position causing excessive motions, damage to equipment and/or emergency disconnect

LNG release- Frostburns- Brittle fractures- Gas dispersion - Fire explosion- RPT (Rapid Phase

Transition)




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Rules and regulationsMain concernsNational rules and regulations

Company requirements

Industry practices



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Safety philosophies and targetsAuthority requirement - Shelf state- Flag

Owner’s requirements

Risk based or prescriptive

ALARPHigh Risk

LowRisk

ALARPRegion

UnacceptableRegion

BroadlyAcceptable

Region

Given immediateattention and a responsedeveloped commensuratewith the scale of the threat

Broadly acceptableonly if risk reductionis impracticable or ifits cost is grosslydisproportionate tothe improvementgained

Necessary tomaintain assurancethat risk remainsat this level

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Rules and regulationsEU RegulationsDefines overall requirements, responsibilities, communication and permitting process

PED and Seveso

Overall regulation EN 1473, Installation and Equipment for liquefied natural gas : Design of Onshore Installations

- Risk based- Requires risk assessments- Refers to codes for different equipment

National rules and regulations


Industry practices



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Rules and regulationsNeed to refer to Overall requirements and requirements from other stakeholders

Specify additional requirements to meet Company targets for safety and reliability

Need to outline operational procedures, training schemes, organisational issues



Industry practices

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Rules and regulationsLNG specific rules and regulations

- SIGTTO:Guidelines for the design and operation of transfer systems.

- API regulations for hydrocarbon plants (API 14C, API 520 etc)

- DNV-OSS-315Risk Based Verification of Onshore LNG and Gas installations

- DNV RP A 203, Recommended Practice for Qualification of new Technology

- DNV-OS-C503 Concrete lng terminal structures and containment systems



Industry practices



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Key success factorsSuitable location

Commercial model

Human resources

- Deep water port- Operational flexibility- No unresolved safety disputes.

- Engineers (design , construction, commissioning, operation) - Project management- LNG/process experience- Civil

- Construction workforce (Civil, welding, process)- Operation (Process control, Maintenance ,Marine operations (tugs, pilots

etc)

- Robust sales and purchase agreements- Commercial flexibility to capture future opportunities- Multiuser issues addressed and regulated (EU requires minimum 20% third

party access)

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Summary

LNG terminals use proven technologies

Risk analysis is key to identify gaps in existing standards

Novel technology should be qualified using a structured approach

Natural gas is the cleanest hydrocarbon fuel

Production and transport capacity offers security of supply.

LNG prices attractive compared to oil



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Safeguarding life, property and the environment

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LNG; the clean, flexible and safe energy source. LNG Forum/LNG_Eric... · LNG; the clean, flexible and safe ... Roof insulation 8. Suspended deck 9. 9%Ni inner shell 10. Insulation