Ir. Ikhwan Yussoff, PEng. MIEM Technical Professional, Front End Engineering & Design Group Technical Solutions, Project Delivery & Technology

OFFSHORE TECHNOLOGY AND OPERATIONS (OTO) SESSION NUMBER : 18 - SUBSEA AND OFFSHORE TECHNOLOGIES ABSTRACT NUMBER : 1133 PETRONAS FLOATING LNG - COMPLETING THE LNG VALUE CHAIN THROUGH TECHNOLOGY

Open Table of Contents

1. PFLNG – The Project Development Background 2. PFLNG – The Overview & Business Opportunity 3. Why Floating LNG ? 4. PFLNG Key Design Parameters 5. Project Development Initiations 6. PFLNG Technology Screenings 7. Possible Offshore Configurations 8. Design Selection Criterias 9. Key Technology Selections 10.PFLNG Construction Sequence 11.Safety Considerations 12.Advantages & Challenges 13.Conclusion

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

SSLNG GTL

TECHNOLOGY OPTIONS TO MONETISE SMALL GAS FIELDS Small-scale LNG Gas to Liquid Liquefaction Plant

CNG NGH FLNG

Compressed Natural Gas Hydrates Floating LNG Compression ratio : 1/600

FLNG Final Investment Decision (FID) Current Progress Project Status PFLNG 1 March 2012 100% In Operation Open PFLNG 2 January 2014 90% Under Construction Changing the traditional LNG Landscapes

Storage & Storage & Gas Production Offshore pipeline Liquefactionoffloading Shipping Regasification

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 (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

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Internal Global FLNG Projects Overview

Field Location Operator Capacity (Mtpa)

Kanowit PETRONAS 1.2

Rotan Malaysia PETRONAS 1.5

Prelude Australia SHELL 3.6

Coral Mozambique 3.4

Offshore Kribi 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 INPEX 2.5

Bonaparte Australia GDF SUEZ 2.3

Cash/ Maple Australia PTT 2 Open Source: LNG World Shipping, June 2017 A business opportunity to unlock and monetise stranded gas fields via FLNG

Open What is stranded gas?

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”.

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

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

Open LNG – Onshore vs Offshore

Onshore Offshore

CAPEX Extra cost for land, pipeline, jetties, One facility at gas location and direct (excluding infrastructure shipping to LNG buyers production systems)

EIA and Permitting Longer process and potentially area Simpler and easier process expected limitations for offshore locations

Installation & Permanent installation Relocatable offshore floating units Abandonment

Screening of Limitations by suitability of seafronts, Can be located at source even if Locations water depth etc. remote area, few restrictions

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

Open Physical Dimension of PFLNG1 & PFLNG2

Weight PFLNG1 PFLNG2 Height (m) TS (MT) 46, 500 50, 000 450 Hull (MT) 85, 000 102, 000

Total (MT) 131, 500 152, 000 400

350 W : 60m W : 64m Level 80

300 Level 75 250

200

150 LBP: LBP: 300m 321m

100

50

PETRONAS Twin Towers PFLNG Satu PFLNG Dua Open PFLNG Key Design Parameters

Flare

Utilities

Liquefaction Inlet & Helideck Agru Turret Living Quarter

Mooring chain

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

Open PFLNG 1 & PFLNG 2 Current Picture

PFLNG1

PFLNG2

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Internal Project Development Initiations

Conceptual Design Concept 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 Design Development of detailed PFLNG Project Specifications and Design Basis Memorandum (DBM).

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

Loading Arms LNG Tanks

Process Plant Turret Combination of proven components

Open Possible Configurations

Satellite 1) Connecting to Central Processing Platform (CPP) Platform

Satellite Reservoir Platform FLNG Central Processing Reservoir Platform

Mooring Riser lines PLET Seabed Gas Pipeline

2) Full Well Stream

FLNG

Mooring Riser lines PLET Seabed Gas Pipeline Reservoir

Open Key Selection Criterias

• Inherent safety design • Research and development on marinisation • Production capacity and field development strategy • Sea state conditions (stability and structural integrity) • Process robustness, efficiency and reliability • Relative sizes of FLNG and LNG Complex • Proven operational experience on onshore LNG Plant

Open Key Technologies

• Turret & Mooring System • Acid Gas Removal (AGR) Process • Liquefaction Process • Cargo Containment System • Marine Loading Arm

Open Key Technologies Turret & Mooring System

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

Open Key Technologies Acid Gas Removal (AGR) Process

• Function: to remove contaminants • Key parameters considered: − Reservoir gas compositions. E.g: Could be divided in phases depending on field specific: . Phase 1 = 10 % 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

Open Source: UOP/ BASF Key Technologies Liquefaction Process

• Function: to liquefy the natural gas Warm • Several technologies Natural Expander considered from various Gas technology providers; Dual N2, C3/MR, Cascade etc. Middle • Redundancy for increased Expander availability and robustness • Rapid ramp-up Nitrogen • Safety consideration Refrigeration • N2 is selected due to lean Cold Expander gas field LNG

Source: APCI

Open Cargo Containment System Key Technologies

• 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 Membrane GTT Mark Membrane GTT No 96 III − Operating cost and boil off gas (BOG) efficiency − Shipyard capability and constructability

Independent Moss Independent IHI- Type SPB

Source : GTT, IHI and Moss

Open Marine Loading Arm Key Technologies

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

Open Highlight on PFLNG1 Offloading System Screening

OFFLOADING SYSTEMS

Side-By- Tandem Side

Flexible Loading Floating Aerial Hose Aerial Hose Arm Hose

Open Completing Hull Erection from Steel Cutting to Dock Erection

Steel Cutting Component Fabrication Pre-outfitting Block Painting

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

Hull Launching & Keel Laying Pre-erection & Quay Side Outfitting Super Block Outfitting

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

Open Completing Topside Erection from Steel Cutting to Lifting Readiness

Steel Cutting Assembly & Pre-PE Pre-outfitting Block Painting *Block Stage Outfitting *Before Turnover Outfitting

Assembly (~10 weeks) ~6 weeks ~3 weeks Pre-Erection (~2 weeks)

Ready for Lifting Module Outfitting Module Outfitting Turnover & PE *On Module stage *Deck Stage *Turnover, Outfitting Equipment Installation and Pre-erection & Outfitting

Module Outfittin (~10 weeks) Turnover of Deck (~1 day) Turnover Outfitting (~2 weeks) Open Pre-Erection (~1 week) Safety Considerations

Highlights on latest equipment/ technology used in PFLNG.

Deck Integrated Fire Fighting FROG personal transfer system System (DIFFS)

Open Advantages and where FLNG is applicable

• Small and accessible to stranded • Early Production System (EPS) for gas fields gas • Faster overall Project schedule as • Mobile and re-locatable compared to conventional grass root facility

Open Challenges in the development of FLNG

• No track record / reference • Feed gas composition vs. process design envelop • Marinisation of topside equipment • Multi-product handling (LNG, • Towing window due to typhoon condensate, LPG if any)

Open Conclusion

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

• FLNG signifies technology advancement solution which adds value to marginal and stranded offshore gas resources, which otherwise would be uneconomical to develop via onshore LNG

• PETRONAS FLNG will become a reference/ 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

Open THANK YOU

Ir. Ikhwan Yussoff, PEng. MIEM Technical Professional, Front End Engineering Design Group Technical Solutions, Project Delivery & Technology PETRONAS

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