Small- and Medium-Scale LNG Terminals

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Small- and medium-scale LNG terminals

A BANKABLE PROJECT WITH A COMPLETE VALUE CHAIN

SOLUTIONS ADAPTED TO THE REQUIREMENTS OF SMALL-SCALE LNG The global trend

Natural gas is today one of the world’s most needed feedstocks as well as an important energy source. Global consumption continues to increase significantly. The replacement of liquid fossil fuels, such as heavy fuel oil, marine diesel oil and diesel, contributes positively to the environment, with emissions of NOX, SOX, and particulates being almost entirely eliminated and CO2 emissions being notably reduced. By liquefying natural gas the volume is reduced by a factor of around 600. This enables efficient transport to end-users overseas, as well as on land where pipelines are not a suitable sustainable solution.

2 The growth of liquefied natural gas (LNG) consumption is zz Availability of subsidies in the EU and China for driven by: LNG infrastructure projects zz Environmental requirements on emission zz Energy demand reduction -- A need for lower energy costs in power generation and -- LNG for feedstock. Natural gas is used as feedstock energy intensive industries. for about half of the commercial hydrogen production -- Energy security considerations. in the world and it is currently the cheapest source of -- A need for decentralized power generation in some hydrogen. The heavier feedstocks, like coal and oil, are areas. more complex to process; therefore, the capital costs are higher compared to natural gas. -- Rapid growth of renewables in the power generation mix increases the demand for gas fuelled power plants to balance the load. -- Fuel for marine vessels. As at the end of 2015, there were an estimated 90 vessels fuelled by LNG. It is cost competitive and contributes to a reduction in maritime greenhouse gas (GHG) emissions. -- Fuel for heavy road transport. There are currently about 170,000 trucks and buses running on LNG in Asia, 3500 in North America, and 1500 in Europe.

3 Wärtsilä makes the difference

P LAT FOR M S U P PLY V E S SEL ( P S V) F LOAT I N G S TORAGE & ( REGAS I FICATI ON ) U N IT L E G E N D OF F S HORE SERVI CE ( F S R U / F S U ) VES SEL (OS V) W Ä R T S I L Ä O F F E R I N G

G A S L I N E

S H I P R O U T E O I L & G A S P L AT F O R M

P O W E R P L A N T L A R G E L IQUEFAC T ION P O W E R P L A N T L A R G E T E R M I N P LANT A L P O W E R P L A N T S M A L L L N G C A R R I E R

REL IQUEFAC T ION U NI T R E L I Q U E FA C T I O N U N I T REG A S I F ICATI ON L N G C A R R I E R UN IT

BU N KER I NG TER MI N AL

L N G F U E L L ED BI O GAS PA S S ENG E R S HI P U P GRA D ING P L A NT BI O GAS P O W E R P L A N T AND F L O A T I N G S T O R A G E A N D L IQUEFACTION L N G S T O R A G E R E G A S I F I C A T I O N B A R G E ( F S R B ) P L A NT P O W E R P L A N T SATE L L ITE AND BUNK E R I N G TERMI NAL

BUNK E R I NG V E S S EL LBG F I L L ING S AT E L L I T E T E R M I N A L STATI ON

P O W E R B A R G E ANAEROBIC D IGE S TIO N SATEL LI TE P L A NT TERMI NAL L N G F UEL L ED CA R G O SHI P

MINI L IQUEFAC T ION P LANT B U N K E R I N G T E R M I N A L

SMA L L / MED IUM S MALL TE RMI NAL L IQUEFAC T ION P LANT J E T T Y L N G F I L L ING STATI ON

S M A L L L N G C A R R I E R

P O W E R P L A N T

4 P LAT FOR M S U P PLY V E S SEL ( P S V) F LOAT I N G S TORAGE & ( REGAS I FICATI ON ) U N IT L E G E N D OF F S HORE SERVI CE ( F S R U / F S U ) VES SEL (OS V) W Ä R T S I L Ä O F F E R I N G

G A S L I N E

S H I P R O U T E O I L & G A S P L AT F O R M

P O W E R P L A N T L A R G E L IQUEFAC T ION P O W E R P L A N T L A R G E T E R M I N P LANT A L P O W E R P L A N T S M A L L L N G C A R R I E R

REL IQUEFAC T ION U NI T R E L I Q U E FA C T I O N U N I T REG A S I F ICATI ON L N G C A R R I E R UN IT

BU N KER I NG TER MI N AL

BUNK E R I NG V E S S EL LBG F I L L ING S AT E L L I T E T E R M I N A L STATI ON

P O W E R B A R G E ANAEROBIC D IGE S TIO N SATEL LI TE P L A NT TERMI NAL L N G F UEL L ED CA R G O SHI P

MINI L IQUEFAC T ION P LANT B U N K E R I N G T E R M I N A L

SMA L L / MED IUM S MALL TE RMI NAL L IQUEFAC T ION P LANT J E T T Y L N G F I L L ING STATI ON

S M A L L L N G C A R R I E R

P O W E R P L A N T

Clean and affordable energy for everyone While LNG previously only was an option for buyers that reserves or access to gas pipelines choose to invest in could absorb large quantities, conventional LNG infra- LNG in order to diversify their supply options. Implemen- structure is now being complemented by small-scale tation of Emission Control Areas for the maritime industry facilities serving smaller demand centres. Islands and makes LNG a very interesting fuel option for shipping other areas stifled by the cost of electricity or pollution companies. Increasingly, ports invest in bunkering termi- now have the opportunity to access LNG and improve the nals, bunkering vessels and bunker barges to maintain competitiveness and attractiveness for business and the their competitiveness and ability to serve a growing fleet living conditions of their citizens. Even countries with gas of LNG fuelled ships.

5 Small- and medium-scale LNG terminals

While the LNG market continues to grow, ensuring access and availability is a key prerequisite. The need for LNG terminals is particularly relevant in places where the gas infrastructure is under-developed but the potential demand for gas-fired power generation and natural gas for other industrial uses is substantial. Alternatively, LNG terminals can complement the existing gas reserves or pipelines in order to improve fuel supply security.

Wärtsilä’s terminal portfolio The storage tank is usually the most expensive part of a zz Specifically adapted for the terminal unless marine facilities are part of the scope, and requirements of small-scale LNG through elimination of complexity the terminals are often defined according to the size of the and increase of flexibility tanks. Wärtsilä’s portfolio consists of terminals with various zz Single use (e.g. providing fuel for a functions combined with a storage capacity in the range power plant) or multi-use (e.g. gas of 100-160,000 m3. Depending on project location and re- send-out, ship bunkering, truck quirements, we specify the most suitable type of regasifica- loading) zz Available for both hub and spoke tion system. As Wärtsilä has supplied regasification system operations modules for more than one third of the floating storage and zz Onshore and near shore (barge) regasification units (FSRU) in active operation, this is an concepts area where we have extensive expertise. Additionally, Wärt- zz Stringent safety regulations during silä Tank Control Systems are used in many of the world’s both construction and operation. leading LNG facilities. We are able to deliver a complete terminal under an EPC contract.

Wärtsilä’s range of small- and medium-scale LNG terminals.

INPUT TERMINAL OUTPUT

LNG transport zz Carriers zz Tanker trucks zz Containers 3 Tank capacity 100-160,000 m zz Rail cars (26,400-42 million gallons) LNG transport zz Jetty & marine facilities zz Unloading systems zz Carriers zz Storage tanks zz Tanker trucks zz Boil-off gas handling zz Containers Gas send-out zz Regasification zz Rail cars -- Up to 1000 tonnes per hour (TPH), 1000 million standard cubic feet per day (MMSCFD) zz Export systems

Ship bunkering

6 7 Satellite terminals for power plants These are single-use satellite terminals dedicated to supply a gas or dual-fuel power plant and include fuel storage and LNG processing systems in the size range of 100-20,000 m3. The storage is mainly built as bullet tanks and the capacity depends on the size and operational profile of the power plant and the frequency of filling. For example, a 50 MW base- load plant with an average of 12 days Truck unloading between fillings would need a storage LNG storage 3 of about 5000 m . Regasification For this concept Wärtsilä provides Electrical and control system Gas send out a complete engineering, procurement Satellite terminal for power plants. and construction (EPC) delivery for both the power plant and the LNG satellite terminal. The operations and Unloading/loading system LNG storage maintenance agreement provided can Regasification also include both facilities. Small satellite terminals These terminals are smaller local terminals with a size of 100-20,000 m3, and located by the sea shore or rivers. They are often placed in harbours where there is easy access for supply vessels to fill the tanks. The storage is mainly built as bullet tanks. These terminals are often built primarily as bunkering facilities Electrical and control system for ships, but they can also include Gas send out additional services such as truck and Bunkering Small satellite terminal. container loading to facilitate distribution of LNG in liquid form. In larger sizes, a regasification unit supply- LNG carriers available that can be ing the LNG storage on the barge ing a local gas pipeline can also be converted to FSRUs. Wärtsilä has and process equipment and support added. created a solution for this problem facilities onshore. Wärtsilä’s preference is to deliver by designing a barge containing Wärtsilä prefers to deliver the barge 3 these projects as EPC with full deliv- storage tanks (7500-30,000 m ) and and necessary infrastructure onshore ery and performance guarantees. The regasification systems. These can be as a complete EPC. Wärtsilä can also terminal can be supported with full an attractive alternative to onshore provide services and maintenance service agreements. small satellite terminals. The barge agreements for the total solution. Storage and can be equipped with the similar zz Ideal for providing fast and regasification barges processes as the land-based solu- flexible access to gas in new tion. The process can also be split areas The smallest FSRUs today are around between the barge and land. This zz For land unsuitable for onshore 120,000 m3. There are no small can be done, for example, by locat- LNG tanks or difficult to permit

8 Marine infrastructure

For small-scale LNG projects a sensi- ble approach to marine infrastructure is crucial since these projects are not able to absorb CAPEX-heavy infrastructure costs. It is especially important to pay attention to site selection and not to overscale the installation, as this will significantly add to the costs and damage project econom- ics. Also, the concept of the project needs to be adapted to limitations set Unloading system Truck unloading by LNG suppliers. LNG storage LNG storage Regasification To mitigate the risks involved, a num- Regasification Electrical and control system Electrical and control system ber of studies are required, such as: Gas send out Gas send out zz Storage and regasification barge. Conceptual study zz Requirements check from relevant authorities zz Manoeuvring study Unloading/loading system LNG storage zz Mooring study Regasification zz Metocean study zz Bathymetric study zz Navigational studies zz Off-shore soil investigations. In order of priority, the below options are suitable for berthing small LNG carriers: zz Berthing at pier or quay zz Berthing at jetty Unloading system zz Off-shore berthing (or mooring). LNG storage Boil-off gas (BOG) system Regasification Electrical and control system Gas send out Truck loading Medium-scale terminal.

zz Where there is a lack of skilled labour these projects possible. They are and local construction material multi-use terminals with flat bottom zz A mobile asset, possible to relocate tanks and can include regasification, or trade – ideal for temporary pipeline distribution, ship bunkering, demand and uncertain market conditions. re-loading, truck and container loading to facilitate re-distribution of LNG Medium-scale terminals in liquid form. These are LNG terminals in the size Wärtsilä’s preference is to deliver of 20,000-160,000 m3 located at sea these projects as EPC with full deliv- shores, working as hubs for whole re- ery and performance guarantees. The gions or larger cities. Due to the major in- terminal can be supported with full vestment and volumes, a group of indus- service agreements. tries and consumers are needed to make

9 LNG storage tanks

Onshore storage for small-scale LNG can either be arranged using a flat bottom tank with storage capacity of »7500-160,000 m3, spherical tanks of »1000-8000 m3 or, for small LNG storage volumes, bullet tanks. Bullet tanks are available up to 1200 m3, meaning that larger storage capacities (up to 20,000 m3) are arranged with multiple bullet tanks.

Flat bottom tanks Flat bottom tanks can be divided into single containment, double containment or full containment tanks. Above-ground full containment tank technology is the preferred solution when it comes to storing large quantities of LNG with maximum safety in a limited site area. But depending on safety requirements and free space available around the tank, the single and double containment tanks can also be considered. Flat bottom tanks are produced on site, which prolongs construction time.

Single containment tank Double containment tank Full containment tank A single containment tank is com- The double containment tank is Full containment is essentially a posed of an inner, self-supporting cy- similar to a single containment tank, double containment tank in which lindrical container made of cryogenic but instead of a containment bund, the secondary container completely steel (9% nickel steel). Insulation the tank is surrounded by a close-in, encases the primary container and surrounds the inner tank to control reinforced open top concrete outer is designed to be liquid and vapour heat leak into the tank. An outer container. If the inner tank fails, the tight in case of rupture. It therefore tank made of carbon steel holds the secondary container is capable of offers the highest inherent safety of insulation. The outer tank is non-cry- containing all of the cryogenic liquid. the tank alternatives whereby limiting ogenic (carbon steel). Only the inner The outer concrete wall increases the the required safety area. The major- tank provides containment for the cost of the tank, but less space is ity of LNG flat bottom storage tanks LNG. However, single containment required because there is no need for built in the last 10 years worldwide tanks are always surrounded by an a containment bund. have been designed as full contain- external safety bund. ment tanks.

Single containment tank Double containment tank Full containment tank zz Primary container contains liquid and zz Primary container contains liquid and zz Primary container contains liquid vapour vapour zz Secondary container retains insulation zz Outer shell retains insulation zz Outer shell retains insulation and is also liquid and vapour tight zz Bund around the tanks retains liquid zz Secondary container is an open top zz Smallest foot print since no bund (not vapour) if primary container fails. tank that retains liquid (not vapour) if around the tanks is required. primary container fails.

10 Spherical tanks tanks are prefabricated in factories, which Spherical tanks are rarely used for LNG, reduces site costs. Pressurised tanks are but can in some cases be the best option. designed and operated so that no boil-off The spherical shape creates a strong gas compressor is needed. structure because of the even distribu- Vertical tanks tion of stresses on the sphere’s surfaces. zz Small footprint compared to horizontal tank Their main advantage is that they have a zz Heavy foundations smaller surface area per unit volume than 3 any other shape of tank, meaning less zz Sizes up to approximately 300 m per tank. heat ingress and thus less boil-off gas (BOG). Horizontal tanks zz Large footprint compared to vertical Bullet tanks tank zz Sizes up to approximately 1200 m3 per Full containment tank. Bullet tanks are of interest when it comes to storing smaller volumes of LNG. They tank. are vacuum and perlite or vacuum and The safety requirements are an important in- Concrete multilayer insulated stainless steel pres- put for selecting the type of bullet tank sys- Insulation sure vessels, operating above 0.5 barg. tem. Bullet tanks have an inner shell made Steel lining Inner tank These tanks are modular, flexible, availa- of cryogenic steel and an outer shell of Thermal ble in vertical or horizontal formats, and cryogenic or non-cryogenic steel. The tanks protection system Suspended roof may be arranged in tank farms of any can have a bund around the whole tank farm Main operating number of manifold rows of tanks to pro- area or only under the process area. platform Pump columns vide the desired amount of storage. Bullet Instrumentation casing pipes

Bullet tank.

Inner vessel (cryogenic steel) Insulation (vacuum and perlite) Outer vessel (cryogenic steel or non-cryogenic steel) Inner vessel over pressure line LNG spray line LNG inlet/outlet line

LNG storage alternatives offered by Wärtsilä

Bullet tank Flat bottom tank Tank type (double shell steel tanks) (single, double or full containment)

Single tank 100–120 m3 Capacity 7500–160,000 m3 Multiple tanks 100–20,000 m3

0.05–0.15% per day, but the tank is capable of Boil-off gas (holding mode) 0.05% per day handling the increased pressure for up to one month

Pressure 0.5–8 barg Athmospheric

Rollover monitoring needed No Yes

Manufacturing method Pre-fabricated in factory On site

Installation time on site Days to weeks 18-36 months

11 Tank control systems

In order to apply efficient business management, while Total LNG tank gauging system adhering to stringent safety regulations, operations per- Our total LNG storage tank instrumentation solution com- sonnel must have access to correct information. Through- prises the following, fully integrated system components: out the production cycle, from storage to distribution, the zz SIL-3 certified servo level gauges availability of precise data is essential, and it needs to be zz High/high level alarm gauges relayed to the control room in real time. zz Product temperature probes Whether your operation is large or small, Wärtsilä zz Fully automatic LTD gauges Tank Control Systems (previously Whessoe) are custom zz Leak detection and cooling temperature transmitter designed to suit your requirements. They can operate system independently, or be interconnected within a plant-wide zz PC based SCADA package system. Our vast experience, research, instrumentation zz Roll-over predictive alarm software. technology, and service support will add value to your The entire system communicates via a redundant commu- business. nication link.

12 Boil-off gashandling

Options for handling BOG:

zz Venting (only allowed in emergency situations) zz Flaring zz Returning the BOG to the LNG carrier during unloading (only an add-on solution during unloading) zz BOG re-condensation and pumping back to LNG tank (requires a constant send-out of LNG) zz Utilising BOG as fuel in a nearby power plant converting into electric power and heat zz LNG recirculation / top spraying zz Pumping it to the low pressure (LP) gas pipeline (<10 bar) zz Pumping it to the high pressure (HP) gas pipeline (10-103 bar) zz Reliquefaction of BOG into LNG.

The suitability of these options One of the main challenges of LNG storage is handling must be evaluated based on the the boil-off gas. BOG is produced because LNG is stored project specific needs. Wärtsilä’s at cryogenic conditions in a much warmer ambient recommendation is to build the environment. It forms in the top of the LNG tank and creates terminal in conjunction with gas pressure that has to be managed or released in order to consumers that can utilise the BOG in their processes or power maintain the pressure within the limits of the tank design. production. This way we can guarantee BOG consumption at any time. In addition, no gas For flat bottom tanks, during normal sible to eliminate the vapour return is wasted and energy use for operation and storage BOG is only line if the LNG carrier is equipped reliquefying the gas is avoided. about 0.05-0.1% of tank mass per with vaporization systems for equal- Combining a Wärtsilä gas power day, while it can be eight to ten times izing the pressure. In bullet tanks plant with a terminal is a per- higher during ship unloading. When used for smaller volumes of LNG the fect solution as the BOG can be excess BOG is generated during ship boil-off gas is 0.05-0.15 % per day, directly converted into electric unloading it is common to return the but the tank is capable of handling power. The electricity can be BOG to the LNG carrier through a the increased pressure for up to 1 used in the LNG terminal itself or vapour return line, compensating for month. Bullet tanks are designed and exported to other consumers. the reduction of the liquid volume in operated so that no BOG compressor the vessel. However, in small-scale is needed. LNG terminals it is sometimes pos-

13 Why Wärtsilä?

We make it possible to switch over to LNG, a cleaner and more affordable fuel, in locations that previously were deemed too small for an LNG terminal. Wärtsilä helps you to develop the project rapidly and with lower risk. With us as a partner, you will have a well-functioning asset for years to come.

Projects are customized for customer zz The use of professional project needs based on a set of pre-defined management methodology and best scopes and proven designs to provide practices. zz Operations & Maintenance a high quality asset at a competitive agreements for guaranteed price. The scope and quality of our performance and predictable services sets Wärtsilä apart from its maintenance costs. competitors, and our range of capabili- zz EPC packages combining both ties is unique. We offer: terminals and power plants that zz Advice and assistance in deal create potentially considerable structuring and financing, including synergistic benefits. financial modelling and feasibility Wärtsilä is proud to serve each cus- studies. tomer with the same high level of zz Proven LNG infrastructure solutions quality and excellence to ensure that supported by a world-class LNG Solutions Design team. all expectations and priorities are fully zz Complete EPC deliveries with understood and met. guaranteed pricing, delivery schedules and performance, as well as process solution deliveries.

Support throughout the entire lifecycle As an owner of an LNG terminal, you understand the importance of uninterrupted gas send-out. For this reason, a Wärtsilä Maintenance solution is an investment that pays a significant return.

Wärtsilä’s Maintenance solution brings considerable benefits: zz Ensured high efficiency and reliability with preventive life cycle services zz High productivity throughout the asset lifecycle zz Increased reliability and availability zz High availability and minimised downtime zz Predictability of maintenance costs over a longer period of time

Read more about Wärtsilä’s Maintenance solution for LNG terminals at wartsila.com

14 Experience and successes

Raahe, Finland. RAAHE LNG TERMINAL Customer Raahen Voima Oy Scope of supply Type Small satellite terminal zz Truck unloading Tank net volume 2 x 700 m3 zz Vacuum insulated storage tanks Send out Max 24,000 m3 per hour zz Regasification & gas metering at 4.0 barg zz Electrical and control system Delivery method EPC zz Process shelters Delivery 2018

Tornio, Finland. TORNIO MANGA TERMINAL Customer Manga LNG Oy Scope of supply Type Medium-scale terminal zz Civil works and infrastructure Tank net volume 50,000 m3 zz Full containment storage tank Send out Max 40 tonnes per hour zz Regasification & gas metering at 6.0 barg zz BOG system Delivery method EPC turnkey zz Electrical and control system Delivery 2018 zz Unloading system zz Bunkering and truck loading.

Waterston, Wales, UK. DRAGON LNG Customer Dragon LNG (JV between Scope of supply Petronas and BG Group) zz Reversed Brayton liquefaction process Type Boil-off gas reliquefaction zz Cooling system (ambient air) unit for large-scale terminal zz LNG buffer tank Capacity 340 TPD/120,000 tonnes per zz LNG transfer pump annum (TPA) zz Instrument air compressor/dryer Details Emphasizing flexibility. zz Instruments Liquefaction capacity can go zz Valves down to 62 TPD zz Control system Delivery method Engineering & procurement zz Supervision/commissioning of site Delivery 2017 installation.

Sungai Udang, Malaysia. MELAKA LNG IMPORT TERMINAL Customer Ranhill Worley for Petronas Scope of supply Type Jetty regasification unit for zz Sea water/propane 3 x 5304 TPD / large-scale terminal 2 MTPA trains (3 x 50%) Capacity 10,608 TPD / 3.9 million zz BOG recondenser capacity 576 TPD / tonnes per annum (MTPA) 21,240 TPA per train. Outlet gas pressure 70 bar Size of module 32 x 20 x 13 m, 945 t dry weight Delivery method EPC Delivery 2011

15 Specifications are subject to change withoutpriornotice. WÄRTSILÄ wartsila.com sels andpowerplantsofitscustomers. environmental oftheves andeconomicperformance efficiency anddataanalytics,Wärtsilä maximisesthe markets. Byemphasisingsustainableinnovation,total complete lifecyclesolutions forthemarineandenergy Wärtsilä technologies isaglobal leaderinsmart and ® isaregistered trademark. Copyright©2018 Wärtsilä Corporation. -

03.2018 / Bock´s Office