15 September 2010
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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.
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LNG; the clean, flexible and safe energy source.
07 September 2010
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ObjectivesProvide factual information on advantages and challenges with LNG as energy source
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© Det Norske Veritas AS. All rights reserved.
LNG; the clean, flexible and safe 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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LNG; the clean, flexible and safe energy source.
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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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LNG; the clean, flexible and safe energy source.
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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; the clean, flexible and safe energy source.
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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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LNG; the clean, flexible and safe energy source.
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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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LNG; the clean, flexible and safe energy source.
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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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LNG; the clean, flexible and safe energy source.
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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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LNG; the clean, flexible and safe energy source.
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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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LNG; the clean, flexible and safe energy source.
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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; the clean, flexible and safe energy source.
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LNG liquefaction plants
Photo: Eiliv Leren, Statoil
Snøhvit LNG
Atlantic LNGAbu Dhabi LNG
Ras Laffan Port
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LNG; the clean, flexible and safe energy source.
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The elements of an LNG Plant
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LNG; the clean, flexible and safe energy source.
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The elements of an LNG Plant
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; the clean, flexible and safe energy source.
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LNG block flow diagram
Source: Suhkri, T., Hydrocarbon Engineering, February 2004
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The elements of an LNG Plant
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 elements of an LNG Plant
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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LNG; the clean, flexible and safe energy source.
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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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LNG; the clean, flexible and safe energy source.
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MOSS Type Containment System
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LNG; the clean, flexible and safe energy source.
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Membrane Cargo Containment SystemGT NO96
GT NO96
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LNG; the clean, flexible and safe energy source.
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Building PrincipleGT NO96
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LNG; the clean, flexible and safe energy source.
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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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LNG; the clean, flexible and safe energy source.
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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
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 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
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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LNG; the clean, flexible and safe energy source.
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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.
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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LNG; the clean, flexible and safe energy source.
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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
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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LNG; the clean, flexible and safe energy source.
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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)
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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LNG; the clean, flexible and safe energy source.
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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
Company requirements
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
National rules and regulations
Company requirements
Industry practices
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LNG; the clean, flexible and safe energy source.
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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
National rules and regulations
Company requirements
Industry practices
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LNG; the clean, flexible and safe energy source.
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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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LNG; the clean, flexible and safe energy source.
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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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LNG; the clean, flexible and safe energy source.
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Safeguarding life, property and the environment
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