Gastech Arrives in Japan, the Founding Father of the LNG Industry

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SAFETY | SERVICE | SOLUTIONS The O cial Show Daily Exhibition & Conference Newspaper

DAY ONE Published by: Tuesday, 4 April 2017

Gastech arrives in Japan, the INSIDE THIS ISSUE 4 Conference Program founding father of the LNG industry 6 Best practices in gas pipeline integrity GAVIN SUTCLIFFE, Head of Content and Lead on Gastech’s Governing Body, UK

Welcome to Tokyo, a vividly exciting themes including: LNG shipping and shipbuilding; innova- and illuminated metropolis, and the capi- tive technology; floating LNG; engineering, procurement tal city of the world’s largest consumer of and construction; gas and shale exploration and produc- LNG: Japan. tion; smart grids and fuel cell technologies; gas-fired power Gastech arrives in Japan for the generation; digital and data management; and much more. very first time, and we are particularly Core commercial themes will include candid and bold Schneider Electric examines delighted that 10 major energy stakehold- examinations of key subjects: how asset integrity must ers have decided to cooperate as the event’s Host Consor- • The future for gas in a new world of tighter remain an industry focus, tium. These 10 companies represent the full natural gas and economics and environmental demands with increasing demand LNG value chains, and are involved in diverse sectors such • The evolution of pricing and trading in the and regulatory scrutiny as upstream investment, project development, shipbuild- gas and LNG markets of gas pipeline projects. ing, LNG trading, technology, power generation and much • The newest, and next, international frontiers more. Our Host Consortium of companies have thrown their for gas and LNG investment. 8 MENA: A top LNG enthusiastic support and expertise behind Gastech 2017 to Our Global Meetings Service is a simple but smart way growth target make the event the largest in the industry calendar. to arrange meetings with the visitors and delegates you have Amid heavy reliance on The event will uniquely draw together the global tech- come to see at Gastech. Download the app for your smart- LNG, APICORP discusses nical and commercial sectors, connecting those that are phone, review who is attending and then book times to meet how the Middle East and funding, commissioning and advising on projects with the with them. This service was launched at Gastech 2015 and North Africa (MENA) regions engineers and technology experts delivering on the ground. helped engage more than 1,000 people in valuable business will overcome inadequate domestic output to meet We have gone through tough times for the past two years, so meetings throughout the event. Make sure you try it out power and industry needs. it has never been more important for the industry to connect yourself and interact with the people you want to connect and engage to drive down costs, increase efficiencies and, with during the week. 11 Trends in LNG ultimately, win new business in globally significant markets. Numerous other superb new features have been added technology: We have seen major changes to the event, as well. to both the conference and exhibition, so please be sure to A conversation with The technical conference program has been considerably review the guide and show materials to maximize your time expanded and now provides more than four times as much and efforts while you are here. Shell’s Guy de Kort content as previous events. Core themes for 2017 will On behalf of the event organizers and our Host Consor- The dominant trends in LNG technology, Shell’s expand into all aspects of the gas and LNG value chain, with tium, we wish you a productive and enjoyable week. ■ LNG projects and predictions for the gas industry are explored.

13 FSRU concepts meet evolving energy demand ABS details new vessel concepts that are making their way into the marketplace.

15 Welcome to the Land of the Rising Sun With so much to offer visitors, Tokyo welcomes Gastech 2017 with open arms. Neon signs light up downtown Tokyo. Japan is on the cutting edge of technology and innovation. Advertising- Show Dailies_247mmx52mm_Ready.pdf 1 11/03/2017 12:01:17 PM

M 20 YEARS OF RELIABLE LNG DELIVERIES TO JAPAN Y

CM Qatargas is proud to have supplied Japan with reliable LNG for more than 20 years. Ever since our first cargo arrived in MY Kawagoe LNG Terminal in 1997, Qatargas’s world -class LNG vessels have safely and reliably delivered more than 2,600 CY cargoes to Japan.

CMY

Addressing the cybersecurity challenge: Making a holistic strategy a reality LEO SIMONOVICH, Siemens

An emerging, but perhaps less an industrial cybersecurity strategy, and services to streamline engineering business and reputation. A technological well-known, danger is having a great establish a cyber governance model, processes, manage information across focus is not enough: a holistic strategy impact on productivity, uptime, effi- re-examine their security fundamentals lifecycles, model and analyze opera- requires the right kind of organizational ciency and safety. While cyberattacks and build smart infrastructure defenses tional systems, and support condition- structures and capabilities to support on LNG equipment have not been that include extensive training. based maintenance. timely detection and agile response. widely publicized, some small breaches Siemens is playing a crucial role in The threat is too serious to wait until Meet Siemens experts by visiting the have occurred. In 2012, RasGas’s web- hardening products and helping opera- a cyberattack damages a company’s company’s exhibit, 17-130 in Hall 2. ■ site and email servers were attacked, tors shield their assets against cyber although the company’s production threats. The company offers a com- capabilities were not affected. Attacks prehensive digital portfolio and an on the operational technology (OT) approach that encompasses risk assess- side are growing and now comprise ment, infrastructure security and the 30% of all cyberattacks. development of secure data management solutions. Siemens has hardened The growing threat. Oil and gas its own infrastructure and offers this companies are becoming increasingly expertise to its customers. digitalized, deploying a growing num- The “Web of Systems” security ber of industrial control systems in net- concept offers oil and gas customers works along the entire value chain (FIG. integrated, “defense-in-depth” protec- 1). These companies recognize that con- tion that encompasses plant, network necting their industrial control systems and system security. The IIoT bridges to their enterprise IT networks improves digitalization and automation, allowing operational transparency, business secure data processing and automation insights, operational efficiency, visibil- anywhere on the Web. Most automation ity and safety. However, the risks now suppliers rely on partners and third par- FIG. 1. LNG and oil and gas companies must address an increasing connectedness associated with digitalization are exac- ties for industrial network components. and the accompanying greater vulnerability to cyberattacks. erbated by aging infrastructures and Siemens’ solution is designed to meet legacy systems that were not designed the environmental, availability and with digital security in mind. security requirements of tankers, pipe- LNG and oil and gas companies lines, subsea and offshore production must address this increasing connect- platforms, and onshore production rigs. edness and the accompanying greater The Siemens portfolio addresses the HAVE YOU vulnerability to cyberattacks. Develop- most pressing issues, including end- DOWNLOADED THE ing a holistic strategy is the best solu- point security, securing data manage- GASTECH APP? tion, beginning with an explicit lead- ment, vendor risk and network visibil- ership commitment that is attached to The Gastech App, sponsored by Qatargas, ity. Siemens offers advisory, design, is a full networking tool providing instant real resources, and a focus to integrate technology and support services, con- capability to collect contact and content cyber vigilance at all levels, develop necting software, systems, simulation information – like a mobile business card! GASTECH APP FEATURES ¡ Free to download - Available to all Gastech Published by Gas Processing as registered attendees four daily editions, 4–7 April 2017. ¡ Improved networking capabilities - Built in If you wish to advertise in this QR reader allowing connections to be made newspaper, or to submit a press release, effortlessly Gastech please contact the editor via email ¡ Peer to Peer interaction - Ability to easily at [email protected]. connect with exhibitors, delegates and visitors ¡ View all your connection details on your personalised timeline Advertisers Publisher ¡ Access the Global Meetings Service directly ABS...... 1, 16 Catherine Watkins from the app Stay up to date with the latest notifications Chiyoda Corporation...... 5 Gastech Contacts ¡ ExxonMobil...... 2 Chris Hudson, President—Global Gulf Publishing Company Energy, DMG Events Ltd. Events...... 10 Gavin Sutcliffe, Head of Conference DOWNLOAD FOR FREE US Gas Processing and Governing Body Plant Directory...... 12 Editor Gas Processing...... 13 Mike Rhodes Petroleum Economist...... 11, 14 Contributing Editors Qatargas...... 1 Kurt Abraham Sempra LNG & Midstream...... 4 Adrienne Blume Woodside Energy Ltd...... 7 Yokogawa Electric Company...... 9 Photographer Mike Rhodes App sponsored Production Manager FROM YOUR SCAN GASTECH by Qatargas Angela Bathe Dietrich APP STORE QR CODE WEBSITE

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GT17 Gastech App Flyer for hydrocarbon v1.indd 1 13/03/2017 12:05 The Official Gastech Show Daily Exhibition & Conference Newspaper ■ DAY ONE Tuesday, 4 April 2017 3 Developing LNG infrastructure for the global energy market

Cameron LNG Liquefaction Project under construction in Louisiana, USA SempraLNGM.com

Conference Program—Tuesday, 4 April 2017

PLENARY SESSION 2. Risk Assessment of Liquefied Hydrogen Gas Carriers ■ Koichi Nishifuji, Manager of Natural Resources and 08:45–08:55 Organizer’s Welcome Energy Department, ClassNK ■ Christopher Hudson, President—Energy, dmg::events 3. Introduction to a Liquefied Hydrogen Carrier global energy for a Pilot Chain Project in Japan 08:55–09:10 Japanese Government Welcome Address ■ Yukichi Takaoka, Senior Manager, Engineering Division, ■ H.E. Hiroshige Seko, Minister, The Ministry Ship & Offshore Structure Company, Kawasaki Heavy of Economy, Trade & Industry (METI) (pending) Industries Ltd. 4. The World’s First Ever Very Large Ethane Gas Carrier (VLEC) 09:10–9:20 NOC & Ministerial Address ■ Adnan Ezzarhouni, General Manager, GTT China ■ H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO 14:00–15:30 Stream 2: Unconventional Gas to Supply LNG Projects 1. The Eagle Ford Shale Case Study: Improving Fracturing 09:20–9:25 Official Opening Ceremony & Ribbon Cutting Efficiency by Understanding the Proppant Placement Mechanism ■ Welcome our Host Consortium Members & Chairman in a Natural Fracture System 09:30–10:00 Japanese Host Welcome & Preview of Gastech 2017: ■ Tetsuya Tamagawa, Senior Manager, JAPEX Research Center Gastech’s host Chairman will lead a review with four senior 2. Offshore Eastern Algeria Case Study: 3D Petroleum System Japanese energy executives, to listen to what they hope to Modelling and Hydrocarbon Occurrence see discussed during the Gastech event, and what topics ■ Mohamed Arab, Senior Geologist, Sonatrach are most anticipated. 3. Go East, Young Man - An Alternative for Western Canada’s ■ Nobuo Tanaka, Chairman of the Gastech Japan 2017 Potentially Stranded Gas Consortium, former Executive Director of the International ■ John Baguley, Chief Technical Officer, LNG Limited Energy Agency 14:00–15:30 Stream 3: Carbon Reduction, Capture & Storage ■ Yuji Kakimi, President, JERA 1. Tomakomai CCS Demonstration Project of Japan, ■ Takashi Anamizu, Senior Executive Officer, Tokyo Gas Co. Ltd. with CO2 Injection in Progress ■ Hajime Hirano, Executive Vice President, Group CEO, ■ Yutaka Tanaka, General Manager of Technical and Energy Business Group, Mitsubishi Corporation Planning Dept., Japan CCS Co. Ltd. (JCCS) ■ Hirotatsu Fujiwara, Managing Officer, Chief Operating 2. Three-Dimensional Reactive Transport Simulation of the Officer, Mitsui & Co. CCS Demonstration Project in Tomakomai ■ 10:00–10:25 Global LNG Leader’s Address Kohei Akaku, Specialist (Geochemistry), Japan Petroleum ■ Maarten Wetselaar, Integrated Gas & New Energies Exploration Co. Ltd. (JAPEX) Director, Shell 3. Environmental Benefits of Natural Gas: Enhancing Efficiency and Reducing the Carbon Footprint of Gas Networks 10:30–10:40 Global NOC Address ■ Maria Sicilia Salvadores, Director of Strategy, ENAGAS ■ Alexey Miller, Deputy Chairman of the Board of Directors, 15:30–16:00 Chairman of the Management Committee, Gazprom Networking Break 16:00–17:30 Stream 1: Gas Transmission and Pipeline 10:40–11:10 Networking Break 1. FLNG to Subsea—Are You Following Me? 11:10–12:25 International Energy Leadership Panel Debate: ■ Andy Loose, Technical Director FLNG and LNG, KBR “How are gas suppliers adapting to the changing global market?” 2. Subsea System Architecture for Coral South FLNG ■ (Moderator) Simon Flowers, Chairman & Chief Analyst, ■ Francesco Rossi, Project Engineering Manager, ENI Wood Mackenzie Mozambique Engineering ■ Michael K. Wirth, Vice Chairman, Chevron 16:00–17:30 Stream 2: Digital and Data Management ■ Robert S. Franklin, President, ExxonMobil Gas & Power 1. Change Demands Innovation: Embracing Cognitive Computing Marketing Company to Unlock Collective Intelligence—Both Past and Present ■ Khalid bin Khalifa Al-Thani, Chief Executive Officer, Qatargas ■ Brian Haggerty, Vice President Innovation Capability ■ Patrick Pouyanné, Chairman & Chief Executive Officer, Total SA 2. Supporting the Operational Efficiency of LNG Carriers ■ Ryan M. Lance, Chairman & Chief Executive Officer, with Big Data and the “IoT” (Internet of Things) ConocoPhillips ■ Deok-Hoon Jang, Manager in Business Development, NAPA ■ Peter Coleman, Chief Executive Officer and Managing 3. Realizing the Full Value of Industrial Internet and Director, Woodside Energy Ltd. Data Analytics in LNG Facilities 12:30–12:45 Investing in LNG’s future—Address ■ Jaleel Valappil, Principal Engineer/Group Supervisor, ■ Charif Souki, Chairman, Tellurian Bechtel Oil, Gas and Chemicals

12:45–14:00 Delegate Networking Lunch 16:00–17:30 Stream 3: Gas to Liquids/Natural Gas Liquids 1. Unlocking Value Through GTL Innovation 14:00–Close Organized Business Meetings, Networking and Exhibition ■ Shelley Wheeler, Gas to Liquids Business Development Manager, Shell TECHNICAL SESSIONS 2. FT-GTL Unlocks Value from Natural Gas 14:00–15:30 Stream 1: LPG/Ethane/Hydrogen Shipping ■ Michael Goff, Technology Manager, Black & Veatch 1. New Terminals, New Opportunities: But How Can We Avoid 3. Roll Out of Smaller Scale GTL Technology at ENVIA Energy’s The Same Old Problems? GTL Plant in Oklahoma City, USA ■ Bill Wayne, Principal Consultant, Seawallis Consulting ■ Neville Hargreaves, Business Development Director, Velocys

4 Tuesday, 4 April 2017 DAY ONE ■ The Official Gastech Show Daily Exhibition & Conference Newspaper People problems: Addressing operator competency MARTIN ROSS, Honeywell Process Solutions

The first step in solving any prob- are saying: Are safety and environ- identify the required competencies and out adversely affecting the unit, trou- lem is admitting that you have one. mental authorities giving poor reviews proficiencies. For console and field bleshooting control loops, and so on. People are the process industry’s and identifying operator performance? operators, for example, a key respon- Finally, each competency can be greatest asset, but they can also be the Are underwriters’ concerns about sibility is to operate under normal con- assigned a proficiency level, from weakest link without the support they increased upsets or environmental ditions. This, in turn, requires a set of “aware” to “knowledgeable,” “skilled” need. Problems with operator compe- emissions pushing up premiums? Is competencies: operating unit controls, and “master.” In this way, the competency impact process performance and customer satisfaction suffering due to interacting with other units and execut- tency model not only identifies gaps, can pose serious safety consequences. difficulties meeting schedules, or qual- ing a shift handover. These are linked but also specifies the training needed Weaknesses can only be addressed if ity and specification requirements? to behaviors: explaining unit control to close them and meet the needs of they are first identified. Listen to what the data is saying, as schemes, manipulating controls with- both the staff and the business. ■ Fortunately, both leading and lag- well. Trends in production performance ging indicators can reveal operator can reveal competency problems: ris- competency challenges before more ing operating costs due to lower yields; serious consequences occur. higher energy and chemicals costs or falling catalyst activity; increased re- Look in, look out. The most obvi- runs of off-spec products; and rising ous leading indicators are operator numbers of incidents. Competency performance and knowledge, which may not be the root cause in each case, are best assessed through a review. but it often is a contributing factor. Can operators explain the process, the important process variables and Take action. Any operator com- how they are controlled? What are petency gap must be closed, and this typical disturbances and standard requires a framework for evaluation and procedures? Are they consistently intervention. This framework is best completing tasks, making good use based on continuous performance eval- of the control systems and effectively uation, both for new hires after training managing upset conditions? to identify weaknesses in specific com- The work environment is a less petencies, and after an operator is “certi- direct measure, but can provide fied.” Continuous monitoring identifies a powerful indicator of problems any drift from expected performance. (FIG. 1). Symptoms of high stress or Deviations from expected norms FIG. 1. One method to increase operator competency is to examine the operator’s low morale among operators, or high must be identified, mapped to a com- roles and responsibilities and identify the required competencies and proficiencies. staff turnover and absenteeism, can petency gap, closed by refresher train- be indicative of concerns over coming, and continuously monitored to petency. If operators are not confident prevent future issues. Therefore, an that they are able to run the plant well, ability to identify specific competency the chances are that they will not. gaps and suggest training is essential. However, it is not enough just to lis- One method is to examine an oper- ten to operators. Listen to what others ator’s roles and responsibilities and Advancing the Future of Energy LNG BUYERS COOPERATE Chiyoda Corporation is an integrated engineering company and one of the world’s TO PUSH FOR FLEXIBLE CONTRACTS largest LNG plant contractors, guided by our corporate philosophy of energy and environment The world’s largest LNG buyers are joining forces to secure more flex- in harmony. ible supply contracts in a move that further shifts power from producers We develop efficient energy production for global benefit. to buyers. Buyers seek supply flexibility concessions, such as the right

to re-sell imports to third parties, which is not permitted under so-called We provide natural gas worldwide by overcoming the challenges of international LNG plant destination restrictions. construction. Korea Gas Corp. (KOGAS) has signed a memorandumC of understand- M

ing (MoU) with Japan’s JERA¸ a JV between Chubu ElectricY Power and We are innovative and pioneering in new fields such as offshore resource development, Tokyo Electric Power, and China National Offshore Oil Corp.CM (CNOOC) refining non-ferrous metals and realizing a hydrogen energy based society. MY

to exchange information and “cooperate in the joint procurementCY of LNG.” Japan, China and South Korea account for approximatelyCMY 55% We employ the most talented engineering professionals, conquering challenges worldwide. K of global purchases, according to energy consultancy Wood Mackenzie. The unusual three-buyer alliance will pressure exporters like Qatar, With your support we will continue to meet our world’s energy goals. Australia and Malaysia, which prefer to lock clients into decades-long supply contracts that oblige buyers to take fixed amounts of monthly volumes regardless of demand, with no right to re-sell unneeded supplies to other end users. The LNG market is experiencing significant changes as the biggest ever flood of new supplies is hitting the market, mainly from Australia and the US. New production has resulted in a global installed capacity exceeding 300 MMtpy, while only 268 MMtpy of LNG were traded in 2016, according to Thomson Reuters data in Eikon. This has helped pull down Asian spot LNG prices by more than 70% from their 2014 peaks to $5.65 per

MMBtu. It has also increased the choice of suppliers, putting pressure on Courtesy of Qatargas Operating Company Limited major producers like Royal Dutch Shell, Chevron, ExxonMobil and Wood- side Petroleum to grant more flexible contract terms. Source: Reuters. ■ https://www.chiyoda-corp.com/en/ Minato Mirai Grand Central Tower 4-6-2, Minatomirai, Nishi-ku, Yokohama 220-8765, Japan

The Official Gastech Show Daily Exhibition & Conference Newspaper ■ DAY ONE Tuesday, 4 April 2017 5 Best practices in gas pipeline integrity LARS LARSSON, Schneider Electric

As global oil and gas exploration • Mitigation activities and increasingly protective technology fur- problems. Operators and civilians alike continues, and more hydrocarbon solutions minimize the extent ther safeguard pipeline vulnerability. can benefit from the various tools that sources are discovered and developed, or impact of the leak and While it may seem like common are becoming increasingly available. the demand for pipelines increases. the resulting damage. sense to avoid areas that are suscep- Computer-based simulators improve Pipeline operators are under severe Because leak prevention is para- tible to natural disasters and other operational safety and meet regulatory financial and social pressures to avoid mount, the three-phase process is geo-hazards, history has proven that requirements. Enabling the most real- incidents that potentially cause crude understandable. As with most catas- one small mistake or lack of consid- istic training experience is essential to oil and natural gas leaks. With regula- trophes, the best defense is a proac- eration of this detail play a large part ensuring that the pipeline controller is tors scrutinizing pipeline projects, the tive offense. The technology and tools in events that can lead to pipeline exposed to both normal and abnormal entire industry’s reputation is at risk, needed to anticipate potential threats explosions. The geography of the ter- operating conditions. and pipeline integrity must remain a to pipelines and identify anomalies are rain surrounding the pipeline must be focus of discussion. available today. The expression, “an evaluated, whether by topographical Detection. Activities and solutions “Pipeline integrity” refers to a ounce of prevention is worth a pound and geological maps, satellite imagery, associated with the detection of com- comprehensive program that works of cure,” holds true for pipeline integ- aerial photography and surveys avail- modity releases play an important to ensure that hazardous resources rity—the costs of preventing a leak are able in the public domain; all are suit- role in pipeline integrity. Numerous are not released from a pipeline while inevitably much lower than the costs able methods (FIG. 1). Natural disasters methods of detecting a pipeline leak minimizing the impact in the event a of cleanup, fines and potential civil like landslides and earthquakes, soft exist, and these detection methodolo- release does occur. Although preven- liabilities, as well as damage to a com- soils such as swamps and bogs, and gies can generally be divided into two tion methods may be considered as pany’s reputation. underground cavities like coal mines approaches—external and internal. a one-size-fits-all solution, pipeline The process and planning that goes and caves should also be considered. External-based gas pipeline leak integrity encompasses a much broader into the prevention of gas leaks is a It is also crucial to implement cor- detection has been practiced since pipe- definition and comprises three phases: multi-tiered strategy that can be split rectly sized equipment. A steady-state lines were first used to transport fluids • Prevention activities and into three categories: pipeline simulation tool can validate of all types. It involves surveying the solutions seek to avoid gas • Design and construction the specified size of a pump or com- external surroundings of the pipeline leaks from occurring in the • Operation and maintenance pressor through a computational model to detect any releases. External-based first place through proper • Training and education. of the pipeline’s operating conditions. systems continue to increase in popu- design, construction, operation, This simulation can also ensure that it is larity due to their ability to detect even maintenance, training and Design and construction. No two hydraulically feasible for the pipeline to the smallest of leaks with a high degree education. pipeline routes are the same, so gas leak cross the terrain as designed. Surge sup- of accuracy. • Detection activities and prevention begins with specifying the pression equipment must also be sized Internal-based gas pipeline leak solutions help pipeline operators technical requirements for each route. correctly. A transient pipeline simula- detection systems examine conditions quickly identify if and when Advances in construction practices, tion tool can model pipeline hydraulics inside the pipeline. Detection is typi- a leak occurs. such as more sophisticated testing, and to determine the design criteria for surge cally based on measurement readings suppression equipment. Surge effects at specific locations along the pipeline. such as water hammer can severely More commonly known as computa- damage a pipeline, causing hundreds tional pipeline monitoring (CPM), this of thousands of dollars in repair. methodology has been in use for only three decades. Operation and maintenance. Beyond equipment construction, a Each pipeline is unique. No two major component of pipeline integrity is pipelines are the same. Specific detec- implementing a proper operations and tion methodologies used for one pipe- maintenance schedule. When a pipeline line may not be useful for another. For is in service, continuously monitoring example, a pipeline company operat- the operational and structural conditions ing in remote areas can rely solely on within the pipeline can identify cir- internal-based systems, while a pipe- FIG. 1. Topographical and geological maps, satellite imagery, aerial photography and surveys should be utilized to evaluate the terrain surrounding a pipeline route. cumstances that, if not mitigated, could line company operating in high-con- lead to major problems both within sequence areas (HCA) may have both the pipeline and downstream (FIG. 2). external- and internal-based systems Inspection and monitoring technolo- installed for the same pipeline. All gies provide pipeline operators with the detection methodologies have pros and information and resources they need cons, and it is vital to take into account to accurately assess the functionality numerous factors prior to selecting of their pipeline and perform proactive the appropriate detection methodolo- maintenance on “at risk” areas. Some gies, including length, elevation, HCA, of the more important aspects include: environment, cost, etc. • Monitoring operating pressure • Inspecting the integrity of the Tackling the gas pipeline pipeline externally and internally integrity challenge. Gas leaks • Monitoring depth of cover can be incredibly costly. A company • Properly calibrating monitoring can lose tens to hundreds of thousands devices of dollars in product if a moderate or • Monitoring ground temperature even minor leak occurs. This is also and excavation activities true for the environmental impact of an undetected leak. Training and education. Pipeline While gas pipeline integrity can controllers are responsible for oper- seem daunting, it should not be feared ating expensive pipeline assets, and if proper steps of precaution are taken. they should be properly trained, and Implementing a tiered methodology even achieve certification. Instruct- significantly improves the chances of ing operators on what to look for in preventing, detecting and mitigating a gas leak is an important preventive leaks in the first place, while provid- FIG. 2. Equipment construction and implementing a proper operations and step. Education among residents living ing additional benefits in other gas maintenance schedule are major components of pipeline integrity. along the pipeline can also help avoid applications. ■

6 Tuesday, 4 April 2017 DAY ONE ■ The Official Gastech Show Daily Exhibition & Conference Newspaper New horizons for the LNG industry MARTIN WOLD, DNV GL

With exciting new projects in the heavily for several years in R & D and ment. Interest in LNG fuel has been Meyer Turku, and are scheduled for cruise industry and other segments, sales activities. While many have felt relatively high for container ships for delivery in 2022 and 2024. the past six months have been very that interest for LNG-fueled ships has some time, and both dual-fuel engines The recent developments in the positive for the LNG industry. With reduced, DNV GL research shows that and other novel solutions utilizing cruise industry are important when the the impending 2020 global 0.5% sulfur the number of newbuild orders has LNG fuel are being explored. Sev- possible impact of newbuilding figures cap, these developments give an indi- actually remained steady. Although eral major stakeholders have recently is considered. The recent orders for cation of what is to come. the exponential growth we hoped for come together to carry out Phase 2 of LNG-fueled cruise ships, for instance, As of February 2017, 100 LNG- did not materialize, a steady stream of the piston engine room free efficient will certainly affect the total volume fueled ships are in operation globally, LNG-fueled newbuilds (particularly in containership (PERFECt) ship proj- of LNG sold to ships. Large cruise with 101 ships on order. Additionally, a time of low oil prices and low new- ect, which investigates the possibility ships can easily consume 30 Mtpy– 72 LNG-ready ships—ships designed building activity) provides some hope of using a combined-gas-and-steam 50 Mtpy (thousand tons per year) of for efficient conversion from conven- for higher growth rates in the future. turbine system (COGAS) to power an LNG, depending on their operational tional fuels to LNG—are already in The increased interest we now see in ultra-large container vessel (ULCS), profile. With 11 such vessels on order, operation or on order (FIG. 1). LNG as ship fuel supports this claim. shown in FIG. 3. The PERFECt project the demand for LNG fuel will rise by Whereas the LNG industry has been has brought together DNV GL, GTT, approximately 300 Mtpy–500 Mtpy. focused mainly on Norway, the order LNG uptake. When we look at the CMA CGM (and its subsidiary CMA In comparison, DNV GL estimates book is presently dominated by ships uptake in different ship segments, car Ships), ABB, the Caterpillar company that the total consumption of the fleet in intended for operation in the North and passenger ferries are still far in Solar Turbines, and OMT. In Phase 2, operation is approximately 250 Mtpy, European and North American trades. the lead. One reason is that LNG con- which will be completed by mid-2017, so decisions made in the cruise sector Even without the necessary LNG bun- sumption and loading frequency often the partners will detail the technical will have a significant impact on the kering infrastructure in place, LNG enable LNG distribution and bunkering concept and its commercial feasibility. whole industry. Such bunker volumes fuel is making its way into global ship by truck. In a time when LNG infra- will give LNG suppliers the confidence trades. Seven of the vessels now in structure is scarce, this flexible and The impact of LNG in the to invest in additional LNG bunker ves- operation operate globally, and 19 of low-CAPEX solution plays an impor- cruise industry. LNG as an alter- sels, which will likely be the preferred the newbuild orders are destined for tant role. Distribution by truck can also native fuel is picking up in the cruise way of supplying these ships. These global trade, as well. LNG bunkering be a cost-efficient solution in the long industry. Orders have been placed for bunker vessels will increase LNG infrastructure will be expanded as these term, when the amount of required 11 cruise vessels that will use LNG as availability in certain regions, thereby vessels venture into new territories. bunkerage is limited in a certain area. ship fuel; this is just more than 10% benefitting LNG-fueled vessels in other LNG fuel has moved out of a niche In the LNG uptake ranking, offshore of the present LNG order book. The segments and potentially leading to market, and can be considered for all vessels ranked as the second highest. first cruise ship to use LNG was the additional orders for LNG-fueled ships. newbuilds and segments. However, with the downturn of the AIDAPrima, which operates on LNG The LNG industry had high expec- offshore market, further growth is in port. Royal Caribbean Cruises Ltd. Outlook to 2020. By 2020, we tations that the introduction of the expected to be low, for now. Overall, has ordered two cruise vessels that will expect between 400 to 600 vessels 2015 emissions control area (ECA) we expect to see the highest growth in be powered by LNG and fuel cells. The sulfur requirement would be remem- the tanker, car/passenger, cruise and ships will be built at the Finnish yard See LNG INDUSTRY, page 12 bered as the point in time when LNG container segments (FIG. 2). fuel for ships really took off. The Container ships are well suited to coinciding collapse of oil prices was be a forerunner for LNG fuel, with naturally a disappointment to the sup- fixed routes and high fuel consump- plier industry that had been investing tion to earn back the additional invest-

300

LNG-ready ships 250 Ships on order Ships in operation 69 72 72 72 72 72 200 66 52 150 94 96 99 99 101 71 86 35 40 Number of ships 100 14 97 100 100 100 100 100 100 100 100 56 75 EXCELLENCE 45 50 35 21 25 8 9 15 0 2011 2017 2013 2015 2012 2021 2018 2014 2019 2016 2001 2010 2023 2022 2024 2007 2003 2002 2020 2005 2008 2004 2009 2006 2000 THROUGH Year of delivery

FIG. 1. The 201 confirmed LNG ship fuel projects include LNG-fueled ships in operation globally, ships on order and LNG-ready ships. Additional orders beyond 2018 are confirmed. INNOVATION Industry-leading technology. 50 Collaborative innovation. 45 On order Commercialising opportunities. 40 16 In operation 35 30 25 5 20 15 31 7 16 10 13 20 6 LNG uptake by vessel segment vessel by LNG uptake 3 2 12 1 8 2 10 5 2 11 1 0 4 6 4 4 3 7 2 Tug PSV HSLC RoPax Ro-Ro Find us at stand 8070 at the Bulk ship Car carrier Gas carrier Cruise ship Patrol vessel Patrol General cargo General Container ship Container Specialized vessel Specialized Oil/chemical tanker Oil/chemical Car/passenger ferry Car/passenger

FIG. 2. LNG uptake by vessel segment.

The Official Gastech Show Daily Exhibition & Conference Newspaper ■ DAY ONE Tuesday, 4 April 2017 7 MENA: A top LNG growth target MUSTAFA ANSARI, Arab Petroleum Investments Corp.: APICORP

The Middle East and North Africa will account for 6.5% of global LNG signed four-year contracts with BP ect, as well as tenders for the import (MENA) region will continue to rely demand, a sharp rise from approxi- and Shell, respectively, to purchase of 2.7 Bcmy in 2020, increasing to 5 heavily on LNG in 2017 to meet mately 1% in 2013. Market conditions 1.36 Bcmy of LNG from each for Bcmy by 2023. Morocco’s reliance on regional power and industry demand. (an abundance of cheap supply) will 2016, and another four-year contract renewables in the power sector makes Egypt and Jordan received their first also encourage MENA countries to with Qatargas for 0.68 Bcmy. Kuwait its future LNG demand difficult to fore- LNG shipments in 2015; Kuwait and think more strategically about the role also plans to build a permanent LNG cast, and ONEE plans to purchase 20% Bahrain are both looking to construct of gas in their energy mix (FIG. 1). import terminal in Mina Al-Ahmadi. of its requirements on the spot market. permanent import terminals; and Abu Kuwait was the GCC’s (the Coop- The $3.3-B terminal will have a pro- Dhabi has opted to import LNG via a eration Council for the Arab States cessing capacity of 15 Bcmy, with the Jordan: An LNG importer floating storage and regasification unit of the Gulf, originally known as the option of expansion to 30 Bcmy. with options. In May 2015, Jor- (FSRU). Regional LNG importers seek Gulf Cooperation Council) first LNG Dubai began importing LNG in dan began importing LNG after char- to secure long-term supply deals, mak- importer, and that country is commit- 2014. Imports totaled 3.1 Bcmy in tering the 7.5-Bcmy FSRU Golar ing the most of structural oversupply ted to building permanent LNG import 2015, and are expected to exceed 4 Eskimo for 10 years. However, the to lock in favorable pricing and flex- infrastructure to meet its needs. Bcmy in 2017. Emirates LNG has put prospect of imports through the ibility. In 2014, Kuwait National Petro- a hold on plans to install a 12.3-Bcmy Israeli gas pipeline from 2018 means leum Co. (KNPC) signed a five-year LNG regasification and storage facil- that Jordan will not expand this LNG- MENA gas demand. The MENA contract with Golar LNG to charter ity in Fujairah, opting instead to boost import capacity. Noble Energy, which region’s reputation as a supplier of an FSRU with an import capacity imports by chartering an FSRU in produces gas in Israel, has announced global energy obscures a looming of 7.9 Bcmy (billion cubic meters/ Ruwais that should come online later a $500-MM contract to supply 2.2 domestic supply crunch for natural yr). Kuwaiti imports averaged 4.1 this year. This option takes advantage Bcmy over 15 years. Delek and Noble gas, which will be mostly met by LNG Bcmy in 2015, and will likely exceed of cheaper prices and offers a flexible are also considering a longer-term imports. By 2018, MENA countries those levels this year. In 2015, KPC solution to meet power shortfalls until export agreement totaling 45 Bcm the United Arab Emirites’ (UAE’s) over a similar duration. TABLE 1. MENA LNG tender 2015–2019 four nuclear reactors are completed in LNG remains Lebanon’s only the early 2020s. gas-import option after Egyptian gas Buyer Seller Cargo numbers Period Bahrain produced 15.3 Bcmy of imports via the Arab Gas Pipeline Dubai Centrica, Gazprom 3 2016 gas in 2015, a third of which was ended in 2010. In 2013, the govern- Egypt Rosneft 24 2015–2017 used for domestic power generation, ment issued a tender to charter a 7.7- Egypt EDF, Gas Natural, Noble, 45 2015–2016 as electricity demand almost reached Bcmy FSRU, with imports expected PetroChina, Shell, Trafigura, Vitol the country’s 4 GW of installed gen- in the region of 1.6 Bcmy in 2016, Egypt NA 2 2016 eration capacity. However, government increasing to 4.8 Bcmy by 2022. This Egypt Trafigura 4 2016 plans to expand generation by 1.5 GW, should replace the existing fuel oil and a proposal from aluminium pro- used in power generation and save the Kuwait NA 1 2016 ducer Alba to build a 1.35-GW plant country more than $1 B/yr, but the lack Jordan 50% Shell 78 2016–2019 by 2019, will require an additional 3.3 of progress is likely to postpone plans Open LNG tender Bcmy of supply. Bahrain’s National until the end of the decade. Dubai DSA 12 2016–2017 Oil and Gas Co. (BANAGAS) has Source: APICORP already signed a $653-MM deal with Opportunities and challenges. Teekay LNG, Samsung C&T and Gulf Lower domestic energy prices reduce 1,000 Investment Corp. for the development the attractiveness of investments in 900 Electricity of a 4.1-Bcmy LNG import terminal, long-term LNG import infrastructure. Gas to be commissioned in 2018 with an Capital constraints and LNG market 800 Oil option to double capacity to 8.2 Bcmy. uncertainties are pushing the trend for 700 FSRUs as a temporary option to take 600 North Africa LNG importers. In advantage of low prices before con- 500 2015, Egypt chartered its first FSRU sidering more expensive, long-term

Growth, % Growth, 400 from Norway’s Hoegh, and a second options. In the longer term, however, from BW Group. In 1Q 2016, Egypt’s confronting the gas challenge requires 300 imports reached 1.67 Bcmy, higher a pragmatic approach to domestic 200 than the summer peak average in 2015. prices for gas (and power), allowing 100 The 2015 discovery of the massive them to rise sufficiently to incentivize 0 800-Bcm Al-Zohr gas field has pro- development of the region’s consider- 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 vided hope that LNG imports can be able gas resources. The MENA region contained. However, even if produc- has not deployed sufficient investment FIG. 1. MENA energy demand growth since 1985, %. Source: BP Statistical Review of World Energy, 2016. tion from new discoveries reaches full to bring these reserves into production, capacity on schedule, domestic gas while prospects for regional gas pipe- demand is still expected to outstrip line trade remain limited. 25 supply by 2 Bcmy by 2021. Egypt MENA countries will seek to rein- has already launched a tender to lease force gas security by prioritizing gas 20 a third FSRU with a capacity of 7.7 for the domestic market, and by creat- Bcmy, which could take total FSRU ing import infrastructure and capacity capacity to 21 Bcmy. Egyptian Natural (FIG. 2). Low spot LNG prices, com- 15 Gas Holding Co. (EGAS) has signed bined with FSRUs, offer a welcome contracts with suppliers to import up quick fix. A swathe of import tenders Bcmy to 15 Bcmy by 2020 (TABLE 1). from Egypt and Jordan in the past two 10 Morocco imports 0.6 Bcmy of pipe- years are a positive step toward energy line gas from Algeria, but the construc- security. Diversified imports in Dubai 5 tion of a 2.4-GW combined-cycle plant and Kuwait show that under today’s (CCP) in Rabat will require imports of market conditions, MENA importers 3.5 Bcmy of LNG. Morocco’s Office can meet seasonal demand increases. 0 National de l’Electricité et de l’Eau Favorable market conditions should 2016 2017 2018 2019 2020 2021 Potable (ONEE) has issued a tender for incentivize new MENA importers to FIG. 2. MENA planned regasification additions, 2016–2021, Bcmy. Source: APICORP. the construction of a regasification ter- install import infrastructure and sign minal as part of its LNG-to-power proj- cheap and flexible LNG deals. ■

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yokogawa_ad_w273h406_1703_b.indd 1 2017/03/16 0:19 Digital technologies reshaping marine prospects in uncertain waters TIM SCHWEIKERT, GE Marine Solutions

The beginning of each year is a time However, challenges can be har- crucial, including how and when tion-based maintenance, saving sig- to reflect on the last. The offshore and nessed as a force for progress. The stacked assets can be cost-effectively nificant maintenance expenditures. marine industry can look back on 2016 downcycle has pushed the industry to reactivated. Ensuring optimal fleet Insights on the performance of a criti- as one of the most bruising in recent reshape its competitive landscape, a performance to control costs and com- cal piece of equipment allow tailor- memory. The downturn has been change that is likely overdue. Looking ply with environmental regulations— ing maintenance to a specific piece of tough and drawn out, with increased forward, 2017 will not be an easy year; while reducing the level of reporting, equipment. This ensures that mainte- divestment, more stringent environ- but recovery is on the horizon, and this where possible—will also remain at nance actions are only implemented mental regulations and a prolonged year will be a time for critical decision- the top of the agenda for most ship- when needed for optimal reliability shipbuilding cycle that has resulted in making and forward thinking. owners and operators. and reduced lifecycle costs. overcapacity. Ensuring fleet readiness will be Timing is everything. In a mar- Maximizing connectivity. The ket that is still volatile, the timing of access to real-time insights from ves- these decisions will be a challenge. As sels enables onshore experts, no matter an industry, the worst-case scenario is where they are, to remotely diagnose that we are unprepared to make these problems and immediately advise decisions, or that we are inadequately on the next steps. This approach not equipped to run with opportunities as only provides vessel owners with fast the market recovers. As the industry access to global knowledge experts, moves toward a new “beginning,” the but can also save significant amounts time truly is right for the digital revo- of time. For example, an engineer can lution in offshore. Digital solutions analyze and diagnose multiple ships help to de-risk decisions; bring practi- concurrently from a centralized control cal, actionable insights into vessel and center, reducing the need for multiple fleet performance; and provide proven specialists onboard. With the backdrop opportunities to optimize operations of a looming industry skills shortage, in a sustainable way. this connectivity maximizes the reach Breaking down data silos and data of an individual’s expertise and can complexity are the first crucial steps. ease the impact of downsized teams. Through embedded sensors that enable Data analytics tools also enable the collection of data on critical vessel energy-efficient operations, as soft- FIG. 1. Software analytics enable vessel operators to anticipate and address systems (FIG. 1), it is now possible to ware can forecast weather and wave problems before they cause an operational disruption. gain insights on future performance conditions, helping determine the using software analytics. By analyz- heading and operational mode with ing these insights, vessel operators can optimized fuel consumption, a cru- anticipate and address problems before cial advantage in complying with they cause an operational disruption. increased environmental regulations. Thanks to advanced algorithms With the objective of capitalizing and a strong data-processing capabil- on this emerging digital opportunity, ity, digital analytics tools can map out GE has developed its SeaStreamTM a “digital twin” of a physical asset— Insight asset performance manage- be it a propulsion motor, an engine or ment solution. Working in collabo- & an entire vessel—based on its normal ration with Maersk Drilling, GE will operational data profile. Drawing a help deploy SeaStream Insight on one comparison between the “digital twin” of Maersk Drilling’s rigs with the aim and the vessel’s real-time data, digi- of increasing productivity through big tal software can spot inefficiencies as data and reducing maintenance costs well as detect potential failures, up to by up to 20%. weeks in advance. This gives operators This partnership is a prime example time to proactively mitigate potential of how digital technologies are shap- SEPTEMBER 12–13, 2017 | HOUSTON, TEXAS problems, enhancing a vessel’s oper- ing the future of the offshore marine The Latest Gas Processing ational efficiency through reduced industry. Uncertainty may be the downtime and increased productivity. new norm in the marine industry, but Trends + Technology in One Place This predictivity will also enable through digital technologies we can the industry to switch from calendar- seize the opportunity to lead the trans- For 2017, Gulf Publishing Company’s ﬁ fth annual based planned maintenance to condi- formation of the marine industry. ■ GTL Technology Forum will be co-located with the third GasPro Americas. These two events provide a timely gathering for the gas processing industry ROSNEFT TO SUPPLY 10 LNG to discuss the latest challenges and developments; CARGOS TO EGYPT learn about the current economic outlook; share A trading unit of top Russian oil producer Rosneft Trading SA (RTSA) has best practices; explore solutions to help improve signed a deal to supply 10 LNG cargos to the Egyptian Natural Gas Holding production and e ciency and network with peers. Company (EGAS), according to a report by Reuters. The first delivery by Ros- neft is expected in May. RTSA delivered three LNG cargos to Egypt in 2016. Register Early + Save Once an energy exporter, Egypt has become a net importer due to declin- Attend both events for the price of one! ing oil and gas production and increasing consumption. The country is working to increase production at recent discoveries to fill its energy gap as soon as possible. Rosneft does not produce its own LNG yet, but plans to launch production GTLTechForum.com | GasProcessingConference.com jointly with ExxonMobil later this decade. The company declined to com- ment on the sourcing of the LNG cargos for Egypt. ■

10 Tuesday, 4 April 2017 DAY ONE ■ The Official Gastech Show Daily Exhibition & Conference Newspaper Trends in LNG technology: A conversation with Shell’s Guy de Kort Gastech had the plea- Gastech: How has Shell LNG technology Guy de Kort: The significant drivers that will sure of interviewing Guy evolved since it began in the 1960s? shape our industry are relatively well known: a grow- de Kort, Vice President of Guy de Kort: Shell is extremely proud of our ing population coupled with a higher quality of life Development, Integrated long—more than 50 years—history in the devel- are driving higher energy demand. Governments, Gas at Shell, about the opment of LNG. Our deep understanding of LNG business and society expect this energy to contain

dominant trends in LNG means that we are a reliable partner that is able to less CO2. This results in a robust demand outlook for technology, Shell’s LNG deliver better advice and integrated solutions. gas—and specifically LNG—and a transition to a projects and his predictions In operating LNG facilities, we are driving the lower carbon energy system. for the gas industry in the adoption of new technologies to improve operations. However, no LNG project is developed overnight: next seven to 10 years. An example is Shell Smart Connect, which allows most have a lead time of more than four years. If remote analysis of key equipment and condition mon- viable new projects are to come onstream over the Gastech: What are the main trends in LNG itoring, potentially lowering equipment failure rates. next decade, costs must be addressed. technology, and where (what markets) can In regasification, Shell has developed a new high- Simplification and standardization are at the top these technologies have the most impact? pressure emergency release system (HP ERS) to of my list. We can help our contractors to bring their Guy de Kort: The global LNG market is grow- isolate, depressurize and disconnect the gas supply costs down by using industry standards, and by ing and diversifying, with more countries importing quickly and reliably in an emergency situation. addressing complexity. LNG, more buyers emerging in existing LNG import In LNG for transport, we work with original engine countries, and more market segments. Shell’s focus manufacturers on LNG engine performance. We are Gastech: As a member of the exclusive is on technologies that improve existing facilities, also part of a joint industry project that is developing a Gastech Governing Body, what are you open up new markets for LNG and lower green- new “octane number” for LNG, potentially leading to most looking forward to at Gastech 2017? house gas emissions. increased engine power, lower fuel consumption and Guy de Kort: For me, it is the opportunity to meet We are helping to improve the performance and improved engine availability and safety. with people across the industry. Gastech brings a efficiency of the LNG plants that we advise, to get wide range of stakeholders together, so it is a great more from these existing assets. This can be through Gastech: How are Shell’s LNG projects forum for sharing ideas and inspiring creativity. I am debottlenecking and maximizing availability and moving forward? looking forward to hearing ideas that will deliver reliability, but also through the implementation of Guy de Kort: Given today’s environment and more and cleaner energy through the coming decades. improved technologies. We are actively developing new supply coming to market, we have slowed the On Tuesday, 4 April at 10 a.m., Maarten Wetselaar, new markets and new outlets for our gas, particularly pace of new investment decisions and are reshaping Integrated Gas & New Energies Director for Shell, in the marine and heavy road transport segments. projects for better returns. However, we continue to will deliver a Global LNG Leader’s Address. Although we have slowed the pace of new invest- progress a diverse funnel of competitive opportuni- Guy de Kort chairs the Operations, Mainte- ment, we still see a place for large LNG projects in ties for both greenfield and brownfield LNG. nance and Reliability panel on Wednesday at 2 p.m. the future. So, we are using this time to optimize Explore the new high-pressure emergency release technology designs and integrate new ideas where Gastech: How will the global gas and LNG system design at the Shell exhibition stand (M 202, they can reduce costs and improve efficiency. industry develop in the next seven to 10 years? 203, 204, 205). ■

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The Official Gastech Show Daily Exhibition & Conference Newspaper ■ DAY ONE Tuesday, 4 April 2017 11 LNG INDUSTRY, continued from page 7 to be in operation worldwide. It will oil (HFO) and marine gasoil (MGO). will be felt the most in the deepsea ship when compared to what we are seeing be interesting to see how the Inter- This will offer an additional incentive segments. The application to the IMO in Europe. The slowing effect of the national Maritime Organization’s to ship owners that are considering a for a nitrogen oxide (NOx) ECA in the lack of infrastructure developments, (IMO’s) recent decision to implement switch to LNG to achieve compliance Baltic and North Sea (keel laying date among others, should clearly not be the global 0.5% sulfur cap from 2020 with the upcoming sulfur cap. of January 1, 2021) received somewhat underestimated. affects the LNG industry. We expect The impact of increased interest in less attention after the 70th session of In these early days, flexible infra- the price of the 0.5% fuel to be some- LNG as ship fuel and a greater number the IMO Marine Environment Protec- structure assets make sense. Orders where between the price of heavy fuel of newbuilds using LNG propulsion tion Committee (MEPC70), but this for LNG bunker vessels are clearly will be an additional regulation in favor picking up, and such vessels will play of LNG over regional alternatives. an important role for cost-efficient Exhaust gas cleaning technologies distribution and bunkering of LNG. are also on the rise. Already, 354 scrub- Five LNG bunker vessels are on order, ber projects have been confirmed (as including orders by Shell, Engie/ per February 2017), and we believe NYK/Mitsubishi, Skangas, Bomin- that the uptake will increase over the Linde/Klaipedos Nafta and TOTE/ next few years (FIG. 4). Scrubbers are a JAX LNG. In September 2016, new FIG. 3. Phase 2 of the PERFECt ship project investigates the possibility of using a combined gas and steam turbine system (COGAS) to power a ULCS. feasible and financially viable solution developments in terms of bunker ves- Source: DNV GL. for existing vessels—thus far, approxi- sel design were seen when DNV GL mately 70% of the confirmed scrubber awarded Vard Engineering Brevik AS 375 projects have been retrofits. On the with an approval in principle (AiP) for 3 350 newbuild side, LNG is in the lead. The its new 6,500-m bunker vessel design. LNG retroﬁt option that best fits a particular vessel Vessels can now load LNG at six 325 LNG newbuild 300 Scrubber must be determined on a case-by-case bunker ship loading facilities glob- 275 basis. Both solutions will play a sig- ally; another nine have already been 250 nificant role in determining the global decided upon, and a further five are 225 fuel mix in the years to come, and under discussion. 200 the pace at which LNG infrastructure 175 develops is one of the deciding factors LNGi. With rapid industry growth, it

Number of ships 150 for the success of LNG as ship fuel. has become increasingly challenging 125 to keep track of all the latest develop- 100 LNG bunkering infrastructure. ments. This led us to develop the DNV 750 Our view is that LNG availability for GL LNG intelligence portal (LNGi). 500 ships is better than the industry’s per- Launched in March 2016, the portal 250 ception, and statistics from our LNG brings stakeholders from across the 0 intelligence portal (LNGi) show that LNG industry together to share mar- Others Bulk ship Gas carrier PSV Tankers Container General Ro-Ro Cruise/ferry Total ship cargo LNG bunkering infrastructure is ket intelligence and contribute to the developing rapidly. In total, 58 LNG uptake of LNG as a ship fuel. Leading FIG. 4. Investments in scrubbers are higher in total numbers, but LNG fuel supply locations are already in opera- LNG suppliers and engine manufac- is the most frequent choice for newbuilds. tion for ships globally, not counting turers—including Shell, the marine LNG bunker vessels and LNG trucks, division of Rolls-Royce and MAN— which can go anywhere (subject to were some of the first companies to permits). Investment decisions have subscribe. LNGi allows subscribers ORDER TODAY been taken on an additional 36 proj- to assess the availability of LNG fuel ects, and a further 36 projects are for specific trade routes and newbuild registered as being discussed. Not all projects. It also provides information project ideas are available to the pub- about market developments and sta- lic, so the actual number is higher. In tus updates of other alternative fuels most cases, project initiators are try- and emissions reduction technologies Gas Plant Data ing to aggregate sufficient demand or across every vessel segment. confidence in the market to make an It is difficult to remain up-to-date at Your Fingertips investment decision. on this kind of information, but it plays As for LNG-fueled ships, we clearly a significant role in making invest- Hydrocarbon Processing and Gas Processing’s newly see that the majority of LNG bunker- ment decisions. LNGi allows us to updated 2017 U.S. Gas Processing Plant Directory ing projects under development are in pool our collective efforts to gener- is available for order. This easy-to-use, searchable Europe, mostly concentrated around ate high-quality data and increase the directory provides detailed information for nearly the ECAs. We also see quite a few transparency in a market that is set to 600 gas processing plants operating across the U.S. projects developing in Asia, but many receive multi-billion USD investments of these are for inland waterway ship- in the coming years. In this way, we ping. In North America, the pace of can innovate together, and with much Order online at GulfPub.com/GPPD. development has been somewhat greater speed and impact than we could slower than we expected, especially hope to achieve working alone. ■

GTT TO EQUIP NEW HYUNDAI HEAVY INDUSTRIES’ LNG CARRIER GTT has received an order from Hyundai Heavy Industries to equip a new LNG carrier with its Mark III Flex containment system. Hyundai’s shipyard based in Ulsan, South Korea will build the 180-Mm3 (thousand cubic meters) vessel on behalf of the Norwegian shipping company NORSPAN LNG XI AS (Knutsen). Delivery is scheduled in 2019. Knutsen is a long-standing owner of LNG carriers equipped with mem- brane technology. With 10 vessels of this type, Knutsen is “renewing its confidence” in GTT technology by choosing Mark III Flex for this new vessel. With its Mark III Flex containment system, GTT provides an insulation solution that is able to reduce the daily guaranteed boiloff gas rate to 0.085% of tank volume. The Mark and NO ranges have been designed to meet all transport and storage requirements of liquefied gases. ■

12 Tuesday, 4 April 2017 DAY ONE ■ The Official Gastech Show Daily Exhibition & Conference Newspaper FSRU concepts meet evolving energy demand The ability to deploy floating stor- “Because most LNG demand is increasingly popular. These units can ships have not yet been ordered, this age and regasification units (FSRUs) driven by the need for electricity gen- serve a smaller power station in an concept is being developed by several to meet local power generation demand eration from a low-pollution source, a island nation—or any other remote top industry players, and is expected has gained pace, as new and different concept that has been widely discussed location—and can be easily served by to gain prominence moving forward, vessel concepts—often serving dif- and may see a significant market in the small-scale LNG carriers. with stronger growth in clean-burning ferent parts of the value chain—have future is a combined FSRU and float- While full-scale LNG-to-power electricity supply. ■ made their way into the marketplace. ing power generation plant.” An FSRU typically has a larger stor- An additional factor driving FSRU age capacity than the discharging car- or FSU conversions is the availability rier. As the size of LNG carriers has of ships in the conventional LNG-size grown, older LNG carrier tonnage has segment, which are still comparatively been rendered too small for standalone young. This “middle-aged” tonnage is FSRU conversion. This has paved the not as efficient as newer vessels, given way for multiple units, or even a barge the improvements that have taken alongside, with a mounted FSU or place with propulsion and containment FSRU system. systems on newer ships. Another element that encourages The use of barge-based regasifica- the use of floating LNG storage units tion units is a concept many industry rather than complete FSRUs is sea- players, such as ABS, are investigating sonal demand. Placing the regasifica- due to their potentially multiple appli- tion unit onshore, or on the jetty, and cations. A unit with some storage and using an LNG carrier for storage is a regasification kit onboard could effec- simple solution. tively combine with an older and some- “Today’s overcapacity in the LNG what smaller FSU to provide the func- market is leading owners to look cre- tionality of a large-scale FSRU, while atively toward new solutions for how also allowing the larger storage unit to to best utilize their assets,” said Tor- trade as an LNG carrier during a low Ivar Guttulsrød, Director of FSRU and season with little or no gas demand. FLNG, Global Gas Solutions at ABS. A second, and apparently fast- “This process also typically involves growing, segment of the market is for class, both as a discussion partner and, barges to serve as regasification units most importantly, to ensure that any for the small- and mid-scale segment. new concepts are in line with appli- Units with a typical storage volume FIG. 1. Today’s overcapacity in the LNG market is leading owners to look cable rules and regulations (FIG. 1). of 10 Mm3–25 Mm3 are becoming toward creative new solutions for how to best utilize their assets.

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Perhaps more than any other coun- Japan’s national sport. Sumo Chankonabe, a hot pot dish made morbidly curious among us might try, Japan embodies the combination of wrestling originated in ancient times as from chicken-based broth, vegetables, find themselves drawn to the 60,000 a deep respect for ancient cultural tra- a performance to entertain Shinto dei- tofu and/or fish, was originally cooked specimens on display at the Meguro ditions with a national identity of for- ties. The rules are simple: the wrestler for sumo wrestlers to accommodate Parasitological Museum, the only of ward-looking, cutting-edge technology. who exits the ring first, or touches the their weight gain diet. Miso soup is its kind in the world. The Japanese archipelago stretches ground with any part of his body besides a cornerstone of a nutritious local The narrow streets of Golden Gai some 1,900 mi from north to south, the soles of his feet, loses. Matches, breakfast. It consists of dashi, a stock contain more than 200 micro bars, contains approximately 40 active which take place on an elevated ring with miso paste. Tofu is also usually restaurants and izakayas, attracting an volcanoes and experiences 1,000 made of clay and covered in a layer of added and, depending on the recipe, eclectic crowd. Jinbocho, nicknamed earthquakes a year. The steep, craggy sand, are usually over in a few seconds vegetables, meat and seafood can be Book Town, is home to roughly 180 mountains that cover two-thirds of of furious close combat. Because weight used as well. book-related businesses and is Tokyo’s the country have forced the Japanese restrictions or classes do not exist, wres- With your meals, enjoy one of publishing hub. to utilize every acre of land, and rich tlers can easily find themselves matched Japan’s renowned beers, or try some Not far from the Kanda Myojin volcanic soil along the coastal plains against an opponent many times their sake, a rice-based wine that should be Shrine is the Akihabara district, nick- and long growing seasons are able to size, so weight gain is an essential part served either lukewarm or heated in named Electric Town for its status as support the density of the population. of sumo training. small shots called “choko.” The city is Tokyo’s technology hub. It is only fit- The pre-match pageantry and con- full of flavors, so be sure to sample as ting that the more gadget-inclined are Cultural quirks. Every culture has tests are highly ritualized (FIG. 1), such many as you can. welcome to receive blessings and pro- its own idiosyncrasies that set it apart, as the symbolic purification of the tections for all their electronic goods! and these small differences are what ring with salt. A strict hierarchy exists Off the beaten path. Tokyo Piss Alley (Shomben Yokocho)— make traveling so rewarding. Japan among competitors, and their tourna- offers many traditional experiences so named for its previous lack of is certainly no exception. On esca- ment performances throughout the year for visitors, such as the Imperial Pal- facilities—or Memory Lane (Omoide lators, stand on the left and walk on either promote or demote their rankings. ace and its gardens (FIG. 3); the fastest Yokocho) is home to more than 60 the right, which is simple enough but and most modern high-speed “bullet” ramshackle bars and closet-sized food the opposite of Europe and the US. Cuisine. Japanese food has its own trains in the world; and dozens of tem- stalls. Robot Restaurant’s cabaret Smoking, eating and drinking while unique flavor, and Tokyo offers some ples and shrines, both Buddhist and show is a spectacle that can only be lik- walking through Tokyo’s crowded of the best. Let’s just come right out Shinto. Explore a little off the beaten ened to a live action video game, fea- sidewalks is a considered a digres- and say the magic word—sushi. Vin- path for a deeper understanding of the turing loud techno music, taiko drum- sion. Responding to the resound- egared rice and raw fish are only the city and its people. ming and garishly bright light displays. ing, “Irasshaimase” (“Welcome”) beginning, as master chefs create One of Tokyo’s most interesting Shimokitazawa, or Shimokita, is a that greets shoppers at every turn, an endless variety of Japan’s most coffee shops, Omotesando Koffee, small district popular with Tokyo’s or returning the early-morning bow famous food and serve it beautifully hides in plain sight in an inconspicuous young and trendy. A bargain hunter’s that greets the first customers of the on wooden or lacquer plates (FIG. 2). traditional wooden townhouse. Japan’s dream, Shimokota is best explored on day is not necessary. Because service Sashimi is fresh, raw seafood or oldest amusement park, Hanayas- foot to experience the quirky shops charges are built into a restaurant bill, meat that is thinly sliced and served hiki, was fully developed in the late selling secondhand clothing, vintage leaving tips is not only unnecessary, it with soy sauce and other ingredients. 1800s during the country’s industrial records, and rare and unusual things is considered insulting. Don’t worry, Ramen is an affordable, staple dish and revolution. Today, this densely packed that you won’t find anywhere else. service is excellent. is prepared a variety of ways. In Tokyo, park boasts 22 attractions, including Make sure you step away from busi- Despite the orderliness that guides ramen consists of thin, curly noodles Ninja and kimono demonstrations ness at Gastech 2017 and get out into everything else in Tokyo, bicycles served in a chicken broth and flavored and daily music performances. The the city. Tokyo is waiting for you. ■ seem to have free reign of the city’s with soy, usually topped with sliced sidewalks. However, the wide paths pork, egg, spinach and nori. Making winding beneath exploding cherry slurping sounds while eating ramen trees in the parks can only be enjoyed with your chopsticks is common, polite on foot. Trash cans are rare, so if you and an expression of appreciation. generate garbage in your wanderings, Another traditional Japanese food, be sure to carry it with you. tempura, is made with vegetables, Money is not handed directly to seafood and other ingredients, all bat- cashiers in restaurants or retail out- tered in eggs and flour and then fried in lets, but rather exchanged in a small vegetable oil to form a crispy texture. tray near the register. If you exchange Sukiyaki is often cooked at the table in anything of value (like a business card a Japanese hot pot style (nabemono). or credit card), hold it with both hands The most common ingredients used and deliver it with a small nod. This in Tokyo include vegetables, tofu and demonstrates that both parties respect negi, which are added to the beef and 1 both the item and each other enough to cooked, mixed with soy sauce, sugar entrust it to the other. and mirin. To soak up the broth, boiled A visitor’s natural inclination when udon or soba are sometimes added. someone does a small favor—holding Soba is a type of noodles made from open a door, or giving up a seat on the buckwheat flour. Opinions on how to subway—is to say, “Thank you,” or best enjoy soba differ, but chilled or “Arigato.” A more natural and Japa- cooked as a noodle soup are the two nese thing to say is, “Sumimasen,” a most popular. Udon is quite similar to 2 most useful word that means, “Sorry,” soba, but made from wheat flour. As or, “Excuse me,” or something like, with soba, it can be served either cold “Sorry to inconvenience you.” or hot. The simplest hot dish is made 1 The Imperial Palace provides On long-distance trains and sub- in a broth called kakejiru, which can be a calm and peaceful oasis in ways, talking loudly on your phone topped with scallions or prawns. the middle of a bustling city. is widely discouraged, and hearing Okonomiyaki, which roughly trans- 2 Gastech attendees should not chimes and ringtones is rare. Most lates to “whatever you like grilled,” go home before experiencing people keep their phones on vibrate. is a pancake filled with almost any- sushi in its homeland. The Japanese are polite, friendly and thing—mostly pork, shrimp or cab- 3 Japan’s national sport, sumo wrestling, is highly ritualized welcoming, and the atmosphere in bage—and covered with mayonnaise, and fiercely competitive. Tokyo reflects that. sauce and dried seaweed. 3

The Official Gastech Show Daily Exhibition & Conference Newspaper ■ DAY ONE Tuesday, 4 April 2017 15 © Oleksandr Kalinichenko/Shutterstock

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