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February 2018 February 2018 LNGINDUSTRY | February 2018 www.lngindustry.com Visit us at LogiMAT 2018 Hall 7, stand D51 13–15 March 2018 The right choice when ambient conditions turn explosive. Extremes of heat or ice? Extremely wet, salty, dusty or cramped con- ditions? Environment turning explosive? STAHL CraneSystems engineers and technicians develop the right solution for tricky situations where unusual requirements emerge. Their long experience and detailed know- how, coupled with a high degree of vertical integration and seamless quality management, enable them to rise to extreme challenges. ISSN 1747-1826 CONTENTS FEBRUARY 2018 03 Comment 47 A compressor revolution Steve Lindsey, Lontra, UK, explains why clean sheet air compressor technology 05 LNG news will be the next revolution in the LNG industry. 49 The compressor conundrum Jason Castillo and James Simpson, Kobelco Compressors America Inc., USA, 12 To be or not to be... an LNG evaluate compressor options for small scale LNG projects. world leader? Bernadette Cullinane and Nye Hill, Deloitte, Australia, provide an 55 Is there a way? update on the Australian LNG industry. Peter Hansen, Dayton Land Company, USA, evaluates the future of North American West Coast LNG exports. 59 Full steam ahead Diana Sorace, FortisBC, Canada, reviews a first in LNG marine bunkering technology and global exports. 63 Seting the bar high Marsh Energy Global Risk Engineering, UAE, discuss LNG benchmarking and strategies for improving risk quality in the industry. 67 A magic bullet? Brian Bradshaw, Sidley Austin LLP, discusses the benefits of the use of common infrastructure in small scale LNG. 12 70 Simulating the future Michael Schwartz, Eka Software, USA, describes how simulation technology enables organisations to explore and test multiple scenarios to foresee and act 18 A history of pumps in LNG on challenges. Enver Karakas and Eric Wonhof, Ebara International Corporation, USA, review the evolving history of submerged electrical motor pumps in the 75 Resolving the reliability challenge LNG industry. Børge Nogva, Høglund, Norway, discusses why automation specialists are branching into fuel gas supply systems to increase the reliability of an LNG fleet. 25 Putting vibration data where it belongs 80 15 facts on... Australia Steve Sabin and Randy Chitwood, Brüel & Kjær Vibro, USA, describe a method that allows complete vibration data to be placed in a process historian, and the benefits of this data integration to machinery engineers. ON THIS MONTH’S COVER 31 SSRU pump configurations Maksym Kulitsa, Independent FSRU consultant, and David Wood, DWA Energy Limited, UK, explain how improved regasification pump integration reduces boil-off gas during FSRU operations. A 9-stage submersible 37 When safety systems add risk LNG send-out Ahmed Adel El Shaer, Mohamed Mostafa and Shreef Elaraby, pump on test at CCC, Saudi Arabia, emphasise the critical importance of safety Ebara Cryodynamics’ in an industry motivated by growth and cost reductions. cryogenic test stand in Sparks, Nevada, 42 Safeguarding the future USA. This pump is of LNG now in operation at Friedhelm Best, HIMA, Singapore, outlines the best a South Korean LNG ways to protect LNG operations in the modern terminal. age. Copyright © Palladian Publications Ltd 2018. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording LNG Industry is audited by the Audit Bureau of Circulations (ABC). or otherwise, without the prior permission of the copyright owner. All views An audit certificate is available on request from our sales department. expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK. THINK GERMAN, ACT LOCAL. OFFSHORE EXPERTISE NEEDED WHEN THE PRESSURE IS ON? WE SUPPLY HIGH PRESSURE PROCESS GAS BELOW AND ABOVE THE SURFACE. We have a full range of reciprocating compressor systems that support beyond fit-for-offshore applications. Customized engineering and service expertise for seismic survey, oil exploration, LNG and FLNG or vent gas recovery on a rig are our strengths. We provide innovative solutions where others give up. Worldwide. NEUMAN & ESSER GROUP www.neuman-esser.com Contact me for South Europe, North Africa and the Middle East: Carlo Terragni Vice President Sales [email protected] Direct line: +39 02 39099433 NEA GROUP Headquarters in Germany LNG_NEA-Terragni-2018-01_rev1.indd 1 20.12.17 15:44 JOSEPH GREEN COMMENT EDITOR n 14 February, every year, chocolates, flowers, and other gifts are exchanged between loved ones, all in the name of St. Valentine. with the weather, before again resuming its course towards Boston. O Much of the history of Valentine’s Day, and the story of its The route generated intense speculation among energy analysts. patron saint, is steeped in mystery. The Catholic church recognises at least The US$27 billion Yamal gas plant opened in December, three saints named Valentine or Valentinus, all of whom were martyred. and some of its first output will be used to heat homes and Some stories suggest that Valentine may have been killed for attempting generate electricity in the Boston area. Novatek is the majority to help Christians escape Roman prisons. Others insist that Valentine was owner of the plant, whose shareholders include an ally of Putin, a priest who performed marriages against the will of Emperor Claudius II, Gennady Timchenko. The US Treasury initially imposed sanctions that who decided single men made better soldiers. My preference is for the prohibited US companies from providing new financing to Novatek story of an imprisoned Valentine, falling in love with a girl, and sending and another Russian energy company in 2014. the first ‘valentine’ greeting. Before his death, it is alleged that he wrote This bizarre and controversial delivery reflects the realities of her a letter signed ‘from your Valentine,’ an expression still in use today. the globalising natural gas market and stems from the growth of What we do know for sure is that February has long been celebrated LNG trade, opposed to traditional natural gas exports that rely on as a month of romance, and that St. Valentine’s Day, as we know it today, long-term contracts. contains traces of both Christian and Roman tradition. With this globalised natural gas market, LNG supplies can In slightly less romantic fashion to the martyred saints who increasingly be shipped from one part of the world to another to gave up their life for love or kindness, I am deliberating over which handle fluctuations in demand. In this instance, the cold temperatures Valentine’s Day supermarket meal deal to select this year. The Waitrose that hit the East coast of the US increased natural gas demand to offering is the priciest of the lot but does offer a box of chocolates so record levels, and the Russian gas was on hand to help. It is a real that may well swing it this year. possibility that Russian gas could once again land on US shores in the It is still unclear whether Trump and Putin will be exchanging cards future. Maybe Trump and Putin are celebrating Valentine’s Day after all. this Valentine’s Day. In this month’s issue we are showcasing features on pumps, For months, the US government has been promising to bring about turbomachinery, compressors, pipelines, and more. This month’s a new era of energy dominance1, largely based on booming oil and regional report is provided by Deloitte and focuses on Australia. natural gas production. It was therefore surprising to learn that the US Bernadette Cullinane and Nye Hill provide an update on the industry will continue importing LNG this winter. It was an even greater surprise and detail how Australia is facing up to increased competition from to learn that the US is importing its first Russian LNG produced by overseas. Yamal LNG, a plant subject to US financial sanctions. I hope you enjoy this issue of LNG Industry and if you picked The LNG cargo, carried by the French tanker Gaselys, finally arrived up a copy at either the Australasian Oil & Gas Conference or the in Boston in late January, after various delays and a particularly unusual US LNG Summit, be sure to visit www.lngindustry.com to subscribe course. and receive the latest updates from the industry. First Gaselys stopped at the tip of Spain, then passed through the 1. https://www.reuters.com/article/us-grigas-davos-gas- Canary Islands. On 19 January, after traveling halfway across the Atlantic, commentary/commentary-a-tale-of-a-tanker-russian-gas- Gaselys made a U-turn towards Spain in what was put down to problems sanctions-and-energy-politics-idUSKBN1FC2WK Managing Editor Production LNG Industry Subscription rates: James Little Bethany Rees Matcham Annual subscription: £50 UK including postage [email protected] [email protected] £60 overseas (postage airmail) Editor Two year discounted rate: £80 UK including postage Website Manager £96 overseas (postage airmail) Joseph Green Tom Fullerton [email protected] [email protected] Subscription claims: Claims for non receipt of issues must be made within Editorial Assistant Digital Editorial Assistant 3 months of publication of the issue Will Owen Nicholas Woodroof or they will not be honoured without charge. [email protected] [email protected] Applicable only to USA & Canada. Advertisement Director Subscriptions LNG Industry (ISSN No: 1747-1826, USPS No: 006-760) is published monthly by Rod Hardy Laura White Palladian Publications Ltd, GBR and distributed in the USA by Asendia USA, 17B S [email protected] [email protected] Middlesex Ave, Monroe NJ 08831.
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