June 2018

Cheniere Energy: Making History The right choice when ambient conditions turn explosive.

Extremes of heat or ice? Extremely wet, salty, dusty or cramped con- ditions? Environment turning explosive? STAHL CraneSystems engineers and technicians develop the right solution for tricky situations where unusual requirements emerge. Their long experience and detailed know- how, coupled with a high degree of vertical integration and seamless quality management, enable them to rise to extreme challenges. ISSN 1747-1826

CCONTENTSONTENTS JJUNEUNE 22018018 03 Comment 61 Sampling with simplicity Jake Tivey, Orbital Gas Systems, USA, highlights the pitfalls of inaccurate 05 representation in trace measurement and emphasises the importance of LNG news gathering fast, representative results in LNG sample systems. 14 LNG’s third wave 63 Pumps of the future Peter Kiernan, The Economist Intelligence Unit, UK, analyses the big Nicolas Fariney, Fives Cryomec, Switzerland, discusses the current state of US volumes entering the market in 2018 – 2019. the cryogenic pump sector and how manufacturers are making the ‘pumps of the future’ a reality today. 20 Making history Eben Burnham-Snyder, Cheniere Energy, USA, gives an overview of 67 Digital transformation in LNG the current status of the company’s projects and outlines why it is well-placed to compete for future demand. plants Craig Abbott, Emerson Automation Solutions, Australia, outlines how the process of digital transformation changes the way plant data is collected, 24 Has boutique LNG gone analysed, and distributed. mainstream? (Part 2) Kindra Snow-McGregor and John Sheffield, 71 Rethinking LNG infrastructure Petroskills|John M Campbell, USA, examine the development of LNG Soili Städter, Valmet, Finland, outlines the company’s strategy to create in North America as both a transportation fuel and an alternative growth for services in the LNG industry. for flare gas reduction/utilisation. 74 29 World Gas Conference 2018 Engine evolution preview Drew Robb, Robb Editorial, UK, examines the evolution of LNG in LNG Industry previews a selection of companies that will be exhibiting at propulsion, and where the technology is heading. this year’s World Gas Conference in Washington, USA. 33 New drivers 87 A new near shore LNG concept Jörg Müller, TGE Marine Gas Engineering, Germany, states the case Noritaka Takata, Jeff Knox, Puneet Sharma, and Dan Winkler, for LNG as the best fuel to significantly reduce emissions from MODEC International Inc., USA, discuss a new combined floating and marine vessels. grounded LNG offshore gas field liquefaction, storage, offloading, and power generation concept with worldwide application possibilities. 40 Supporting the transition Lars Skytte Jørgensen, Alfa Laval, Denmark, details how the 91 Balancing risk company is supporting the marine industry’s transition to LNG with Paul Sullivan, Steelhead LNLNG,G, USAUSA,, ddiscussesiscusses balbalancingancing the rriski comprehensive equipment solutions. managementmanagement cchallengeshallenges of LNG assets and projects. 44 The favoureded ffueluel 9696 15 factsfacts on... the USAUSA Peter Keller, SEA\LNG, states thehe case for LNG as a marine fuel foforr the future. ONON THIS MONTH’S CCOVER 49 Success validatesdates choice Marcel Ott, Winterthur Gas & Diesel,iesel, Switzerland, looks back on an interesting year for the company.y. 53 A viable alternativernative CheniereCheniere is the leadileadingng Jose Navarro, Lloyd’s Register, considersnsiders all aspects of LNGLNG’s’s exporterexpe orter of US LNG. CChenierehe role and potential as an alternativeive fuel. is a full-service LNG prprovider,ov pproprocuringcuring gas from the aabundant,b 57 Too much of a good thithingng low-costlow-cost and liquid US ggasa market, Hao Jiang and Shawn Hoffart, Blackck & Veatch liquefyingliquefying it, and giving ccustomersu Corporation, explore and evaluate a selection of the option to load their cacargoesr at options for the removal of excess nitrogen.nitrogen. Cheniere’sCheniere’s LNG terminals or have themthem delivered worldwworldwide.ide.

CopyrightCopyright © Palladian Publications Ltd 2018. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or tratransmittednsmitte in aanyny form or by any means, electroelectronic,nic, mecmechanical,hanical phophotocopying,toco recording LNG Industry is audited by the Audit Bureau of Circulationsrculations (ABC)(ABC).. or ootherwise,therwise, wiwithoutthoutth theepr priorior permission of the copyright owner. All views An audit certifi cate is available on request from our ssalesales departmentdepartment.. expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements. Printed in the UK. We’ve Joined Forces. Elliott Group and Ebara Cryodynamics

We turned to each other to provide enhanced capabilities and a superior customer experience in liquified gas applications.

From reliable refrigeration compressors to submersible cryogenic pumps and expanders, Elliott Group and Ebara Cryodynamics have supported the LNG industry for decades with proven experience and matchless expertise. Integrating the two businesses will provide a key advantage for our liquefied gas customers. Who will you turn to?

The world turns to Elliott. COMPRESSORS Q TURBINES Q GLOBAL SERVICE www.elliott-turbo.com JOSEPH GREEN COMMENT EDITOR

une 2018 is an important month for a couple of reasons. The 27th World Gas Conference takes place from First and foremost is the long awaited return J 25 – 29 June and is hosting over 600 of the industry’s of the FIFA World Cup. Russia is playing host to most senior speakers from all over the world. The 32 nations competing for the biggest prize in football. star-studded line-up includes US Secretary of Energy This year’s competition kicks off on 14 June, when Russia Rick Perry, and CEOs from global companies including play Saudi Arabia in Moscow. 64 matches in total will Chevron, ExxonMobil, Qatar Petroleum, BP, Total, be played across 11 different cities, with the world ConocoPhillips, Shell, and more. A preview of a selection champions being crowned a month later on 14 July. of exhibiting companies can be found towards the back of The FIFA World Cup is, arguably, the biggest and most this issue (p. 74). prestigious sporting event on the planet. It will be my first visit to Washington, and any Needless to say I am excited – a sentiment that recommendations are very welcome. We have a Segway tour is shared by most in the office. I am not holding out lined up to take in all of the major sights, and my priorities much hope for England, but I can dream. There isn’t the are the Mall, the White House, and the Lincoln Memorial, usual level of confident hysteria in the build-up to this in no particular order. I’m sure there are a number of less competition and perhaps that is a good thing as previous well-trodden delights so please enlighten me. England sides, much stronger than this year’s crop, have In terms of keeping up with the World Cup, I’m failed to deliver the goods. There does remain a very confident there will be plenty of spots to indulge after small part of me however that believes, if lady luck shines a busy day at the conference. In the absence of the on our inexperienced and largely underwhelming team, US national team from this year’s competition, I expect our the trophy might just be coming home. In reality, we will colleagues from across the pond will be supporting the most likely stumble through the group stage battered and Three Lions, surely? bruised before falling at the first knockout hurdle with a The 27th World Gas Conference marks the first time whimper, but I can dream… that the event will be held in a country that is both the June is also an exciting month for the LNG industry. world’s largest gas consumer and producer. This month’s Many from the industry, myself included, will be spending issue therefore has the US in mind with regional report a week in Washington for the World Gas Conference, contributions from the Economist Intelligence Unit and the world’s largest global gas event. The gathering Cheniere looking at what we can expect from the US of influential leaders, policy-makers, buyers, sellers, LNG industry in the near-future. Elsewhere in the issue and experts has been conducted since 1931 by the we feature comment on LNG as a transportation fuel, gas International Gas Union. In true World Cup fashion, the pretreatment, valves, and more. If you are in attendance event has a global appeal, with some 12 000 participants in Washington, please visit the LNG Industry team at arriving from more than 100 countries. stand 958, we look forward to meeting you!

Managing Editor Production LNG Industry Subscription rates: James Little Bethany Rees Matcham Annual subscription: £50 UK including postage [email protected] [email protected] £60 overseas (postage airmail) Editor Website Manager Two year discounted rate: £80 UK including postage Joseph Green Tom Fullerton £96 overseas (postage airmail) [email protected] [email protected] Subscription claims: Claims for non receipt of issues must be made within Editorial Assistant Digital Editorial Assistant 3 months of publication of the issue Will Owen Nicholas Woodroof or they will not be honoured without charge. [email protected] [email protected] Applicable only to USA & Canada. Advertisement Director Subscriptions LNG Industry (ISSN No: 1747-1826, USPS No: 006-760) is published monthly by Rod Hardy Laura White Palladian Publications Ltd, GBR and distributed in the USA by Asendia USA, 17B S [email protected] [email protected] Middlesex Ave, Monroe NJ 08831. Periodicals postage paid New Brunswick, NJ and additional mailing offices. POSTMASTER: send address changes to LNG Industry, 701C Advertisement Manager Administration Ashland Ave, Folcroft PA 19032. Nicola Fuller Will Powell Uncaptioned Images courtesy of www.bigstockphoto.com and www.shutterstock.com [email protected] [email protected]

Editorial/Advertisement Offices, Palladian Publications Ltd 15 South Street, Farnham, Surrey, GU9 7QU, ENGLAND, Tel: +44 (0) 1252 718 999 Fax: +44 (0) 1252 718 992 Website: www.lngindustry.com T R I - C O N SERIES FOR CRYOGENIC APPLICATIONS

WWW.ZWICK-ARMATUREN.DE LNGNEWS

CCanadaanada GGhanahana Petronas to join LNG Canada Rosneft and GNPC agree project long term deal for LNG hell Canada Energy, PetroChina Kitimat LNG Partnership, supplies to Ghana SDiamond LNG Canada Ltd. and Kogas Canada LNG Ltd. have announced that Petronas will take an equity position s part of the XXII St Petersburg International in LNG Canada, located in Kitimat, British Columbia (B.C.) on AEconomic Forum, Rosneft and the Ghana National the west coast of Canada, through its wholly owned entity the Petroleum Corporation (GNPC) signed a package of documents North Montney LNG Limited Partnership, subject to regulatory agreeing to the delivery of 1.7 million tpy of LNG to the approvals and closing conditions. port of Tema (Ghana) over a period of 12 years. The LNG will As a result of this transaction, if approved and upon subsequently be regasified, utilising the processing capacities closing, ownership interests in LNG Canada would be of Tema terminal, and supplied as to GNPC. Shell Canada Energy, a subsidiary of Royal Dutch Shell plc, The obligations of the parties arising from the documents (40%); Petronas, (25%); PetroChina Kitimat LNG Partnership, will come into effect once they are approved by the a subsidiary of PetroChina Canada Ltd., (15%); Boards of Directors of the parties. Diamond LNG Canada Ltd., a subsidiary of Mitsubishi Corporation, Rosneft gas supplies will satisfy a quarter of Ghana’s (15%); and Kogas Canada LNG Ltd. (5%). energy demand, strengthening its energy security, and B.C. is home to one of the largest and most accessible reinforcing the country’s position as the key LNG hub in the sources of natural gas in the world. If constructed, LNG region. Canada participants will ship natural gas, including from B.C.’s During the forum Rosneft and GNPC also signed a vast reserves, to various countries where the imported gas framework cooperation agreement that envisages a joint study could displace more carbon intensive energy sources, helping of high-priority directions of mutually beneficial cooperation in to reduce greenhouse gas emissions. development of oil and gas fields, oil, and oil product supplies. LNG Canada recently selected the joint venture of Rosneft Chief Executive Officer Igor Sechin noted: “The JGC Corporation and Fluor Corporation as the Engineering, signed documents open a new stage in the development Procurement and Construction contractor for the of cooperation between Russia and the Republic of Ghana. project and is currently finalising materials in preparation Today, Ghana has placed itself among dynamically developing for a final investment decision (FID) by joint venture world economies with the energy demand growing year participants. on year. Being a global energy company, Rosneft is capable The transaction does not amount to an FID which remains of meeting this demand including also through LNG and pending. The timing and outcome of an FID will be decided by natural gas supplies. Further, the documents open up wide joint venture participants based on global energy markets, and exploration, production and trading possibilities for the the overall competitiveness and affordability of the project. company.”

SSwedenweden Swedegas and Barents NaturGass agree LNG bunkering deal

n just a few months, for the first time, vessels will one-stop-shop concept. Ibe able to bunker LNG at a permanent facility at “We are very pleased to have the opportunity the Port of Gothenburg. to work at the largest port in the Nordic region Swedegas, which will own and operate and with the shipping companies that use the port. the facility, and the Norwegian company Gothenburg based shipping companies have been Barents NaturGass, which can supply the LNG with amongst the first to adopt LNG in Sweden. Several ISO-containers from main European terminals, have vessels have already been built and launched which entered into an agreement. The shipping sector are ready to run on LNG. We are keen to start our can now purchase marine fuel complying with LNG supply services and meet the customer’s needs,” the tightening emissions regulations based on a said Gudrun Rollefsen, CEO in Barents NaturGass.

June 2018 5 LNGNEWS

CChinahina RRussiaussia MOL takes delivery of new Gazpromtrans to LNGC for SINOPEC purchase LNG-powered itsui O.S.K. Lines, Ltd. has announced the delivery Mof the LNG carrier (LNGC) CESI Lianyungang, locomotives from Sinara which was ordered by the joint venture of Group China COSCO Shipping Corporation Limited (CCSC) and China Petroleum & Chemical Corporation (SINOPEC), at yacheslav Tyurin, Director General of Hudong-Zhonghua Shipbuilding Co., Ltd. VGazpromtrans, and Viktor Lesh, Director General The CESI Lianyungang is the sixth vessel in the of Sinara-Transport Machines and STM Trading House, China LNG Transportation Project announced in April 2013, have signed an agreement for the batch production, and will sail under a long-term charter transporting LNG that supply, and maintenance of gas-powered locomotives SINOPEC purchases from the Australia Pacific LNG Project. in the amount equal to guaranteed future purchases. This project, which built LNG carriers in China, follows In accordance with the agreement, the the ExxonMobil LNG project, announced in March 2010 Sinara Group will design, certify, and launch batch (four newbuilding LNG carriers were ordered from Hudong production of cutting-edge shunting locomotives and delivered by April 2016). Since 2013, to ensure the powered by LNG in line with Gazprom’s requirements. safety and high quality of the newbuilding LNG carriers, From 2019 to 2024, STM Trading House will supply MOL has assigned technical experts to Hudong and created Gazpromtrans with 10 shunting locomotives with a a shipbuilding supervision team made up of multinational capacity of up to 1200 horsepower and 14 shunting staff, to oversee the construction of the six LNG carriers. locomotives with a capacity of up to 2000 horsepower. The newly delivered CESI Lianyungang is the final vessel in The company will also provide maintenance services. the series. The machinery will be used on the The five vessels already delivered for the project Obskaya – Bovanenkovo railroad. continue to provide safe, reliable, service under the The deal was signed at the St Petersburg management of the joint ship management company International Economic Forum 2018. (ownership: MOL – 20%, CCSC and SINOPEC – 80%).

News Highlights

X Gas Natural scraps plan to build LNG terminal X Inpex completes commissioning for Ichthys LNG project X Equatorial Guinea LNG project stumbles as Schlumberger quits

Visit our website for more news: www.lngindustry.com 6 June 2018 Another Success Story: Sabine Pass Liquefaction • Four x 4.5 MTPA trains brought online in 18 months • Very competitive capital cost • Ahead of schedule • On budget • LNG reliably delivered to over 25 countries and regions

Utilizing our Optimized Cascade® Technology and LNG Services

We Deliver: • A proven liquefaction process licensed in 25 trains around the world • Industry-leading operational flexibility and simplicity • Scalable train design from 1.5 to 7 MTPA • Wide feed gas composition capability • A broad range of LNG engineering and operations services The Optimized Cascade® process: Now with more EPC Contractor choices for our clients

To learn more, visit lnglicensing.conocophillips.com. Liquef ied Natural Gas

Optimized Cascade® is a registered trademark of ConocoPhillips Company in the United States and certain other countries. © ConocoPhillips Company. 2018. All rights reserved. LNGNEWS

SSingaporeingapore TTrinidadrinidad aandnd TTobagoobago Singapore LNG selects Atlantic LNG appoints new Tieto for EC support CEO services ffective 1 June 2018, LNG producer Atlantic is ingapore has been identified as having the Etransitioning to a new Chief Executive Officer (CEO). Spotential to become an Asian LNG trading hub. This The previous CEO, Nigel Darlow, was at the helm consensus, fuelled by the rising trade of LNG, has driven since 2011 and during his tenure, strengthened Atlantic’s Singapore LNG Corporation (SLNG) to further enhance position as a leading global LNG business. the efficiency of its business process system used in Before returning to the UK in July, Darlow will remain commercial operations. in Trinidad to support the transition of the incoming CEO. SLNG has been utilising Tieto’s Transport and Revenue “Atlantic is one of the best and most competitive modules of Energy Components (EC) to manage the LNG production businesses globally. It has been a real hydrocarbon accounting for its entire LNG import value privilege to serve as Atlantic CEO,” said Darlow. He added, chain since 2012. EC takes care of business processes “Both Atlantic and Trinidad and Tobago have provided regarding the planning, unloading, inventory control, a wonderful experience for me and my family for over , gas sales and gas delivery. SLNG is also seven years and we are truly grateful for the time we interested in the support services Tieto offers for this have spent here.” business-critical system. The incoming CEO is Philip Mshelbila; a global Tieto began by upgrading the EC version 10 to business leader with over 20 years of oil and gas version 11. This was followed by implementing necessary experience in board-level governance, stakeholder enhancements to support the extended third-party access management, commercial operations, project management, for the Singapore LNG market. and performance delivery in both operated and Tieto’s 24/7 service desk provides consolidated non-operated joint ventures. Prior to his secondment to support for all EC related incidents and takes ownership Atlantic, Mshelbila held the role of General Manager Gas, of all tickets from submission to resolution, making users’ Shell Petroleum Development Company (SPDC), in his daily lives easier. The 24/7 support team will be available native country; Nigeria. day and night to pick up issues first-hand. “I am excited to lead a truly Trinbagonian company Tieto will support SLNG from its centres of expertise that is one of the best-performing LNG companies in the in Europe and Asia. “The support is important for SLNG as world,” said Mshelbila. it enables us to fulfil our obligations to our customers”, Atlantic has extended its best wishes and extreme said Chong Nai Min, Director Information Technology of gratitude to Darlow for his service to the company and SLNG. warmly welcomes Mshelbila as the new CEO.

25 - 29 June 2018 13 - 14 September 2018 18 - 20 September 2018 World Gas Conference 11th EFRC Conference Turbomachinery & Pump Washington, USA Madrid, Spain Symposia www.ilta.org www.recip.org Houston, USA tps.tamu.edu

27 - 30 August 2018 17 - 20 September 2018 12 - 15 November 2018 ONS Gastech Exhibition & ADIPEC Stavanger, Norway Conference Abu Dhabi, UAE www.ons.no Barcelona, Spain www.adipec.com www.gastechevent.com

8 June 2018 COMPETITIVE ADVANTAGE

GLOBAL SCHEDULE POSTION CERTAINTY NORTH TO THE FUTURE SUPPLY PRICE SECURITY STABILITY

Alaska LNG provides customers with a sustainable competitive advantage through economical reliability and stability.

Alaska-LNG.com A subsidiary of the Alaska Gasline Development Corporation | AGDC.us LNGNEWS SSouthouth KoreaKorea SSpainpain Gaslog signs charter with Fure Vinga Centrica for a newbuild LNG completes first LNG carrier bunkering operation in GasLog Ltd. has announced the signing of a seven-year Europe time charter party with a wholly owned subsidiary of Centrica plc. for a newbuild LNG carrier. uretank’s Fure Vinga recently undertook its first LNG A 180 000 m3 LNG carrier (HN 2262) with low pressure Fbunkering in Europe. The vessel received 120 t of LNG two stroke (LP-2S) propulsion has been ordered from from six tanker trucks during an operation that took place at Samsung Heavy Industries (SHI) in South Korea, with the Port of Cartagena. expected delivery in Q3 of 2020. “We are happy that the first LNG bunkering operation for The rate of hire for the charter is broadly in line with the Fure Vinga in Europe took place without a hitch thanks mid-cycle rates. to the cooperation from all those involved, including the Further, GasLog and Centrica have separately agreed crew of the vessel and the port authorities, as well as the optionality in relation to the actual vessel to be delivered cooperation between Gas Natural Fenosa and Nauticor”, said into the charter. This optionality allows, instead of HN 2262, Lars Höglund, CEO of Furetank. either HN 2212 or HN 2274 to be delivered into the charter, “This type of operation shows that the use of LNG as a both currently uncommitted GasLog newbuild LNG carriers marine fuel is an economical, real, and available solution for due for delivery in Q3 2019 and Q2 2020, respectively. shipping companies, guaranteeing supply at ports around the GasLog Partners LP has the right to acquire the vessel world”, said Joaquin Mendiluce, Wholesale Commercialisation delivered into the charter pursuant to the omnibus agreement Manager Iberia of Gas Natural Fenosa. between GasLog and GasLog Partners. As a result, GasLog The LNG experts from the two companies decided to Partners’ potential dropdown pipeline will increase to nine work together and cooperate on this operation, thereby LNG carriers with charter length of five years or longer. expanding their LNG supply network and highlighting the Paul Wogan, Chief Executive Officer of GasLog, stated, potential of LNG as a marine fuel in Europe. “Our experience “I am delighted that Centrica has chosen GasLog to provide with LNG made it possible for this bunkering operation them with a second LNG carrier on long-term charter. We to go smoothly, showing the client that the availability appreciate Centrica’s confidence in GasLog’s ability to deliver of LNG as a marine fuel is improving day by day”, said high operating and safety standards and we look forward to Mahinde Abeynaike, CEO of Nauticor. continuing to build our strategic partnership with them.” The Swedish vessel Fure Vinga is the first in a series of “Robust LNG demand and supply fundamentals underpin six newbuild tankers to be used for the transportation of a positive outlook for LNG shipping. These fundamentals are chemical products owned and operated by Furetank, who are allowing us to grow our fleet at attractive returns, to extend based in Donsö. This is the second LNG-fuelled vessel in the the drop-down pipeline for GasLog Partners and to make company’s fleet and joins the oil/ Fure West, progress toward the growth target set out at our recent which has been using LNG for fuel since 2015. Investor Day.”

MMalaysiaalaysia Petronas sells LNG cargo on GLX

etronas through its subsidiary, Petronas LNG Ltd. (PLL), This initiative is an addition to the prevailing bilateral Phas achieved a significant milestone by selling a LNG discussions which PLL undertakes with its counterparts in cargo through an online trading platform, GLX, for the first leveraging on the existing strong business relationship. time. PLL had issued a tender invite to 30 registered GLX The utilisation of the GLX online platform is in line with members for the sale of its Delivered Ex-Ship (DES) cargo. Petronas’ effort in promoting the digitalisation of its business The bidding process ran smoothly and garnered healthy and serves as an alternative platform to market its cargoes. interest from bidders throughout the trade window.

10 June 2018 Powering the Energy Future through LNG

Where no natural gas pipeline exists Chart offers complete solutions for LNG as a primary fuel for power generation, or as a secondary fuel where natural gas pipeline capacity is constrained.

• Diesel, , LPG and oil displacement • Emergency back-up and curtailment • Remote locations and islands • Temporary power generation • Peak shaving

Email: [email protected] www.ChartLNG.com

LNGNEWS GGreecereece Presidential decree for LNG TTaiwanaiwan bunkering in Greece Osaka to provide reek Minister of Shipping, P. Kouroumplis, presented consulting services to Gthe Presidential Decree containing safety provisions Taiwan LNG terminals for LNG bunkering operations in Greece at a ceremony, bringing together key marine stakeholders, representatives saka Gas Engineering Co., Ltd. (OGE), a subsidiary of from relevant authorities, Poseidon Med II partners, and OOsaka Gas Co., Ltd. (Osaka Gas), has entered into an journalists. agreement to provide consulting services on construction The Presidential Decree is the umbrella legislation, taking of LNG receiving terminals of CPC Corporation, Taiwan (CPC) into account all national and international rules and practices, and Taiwan Power Co., Ltd. (TPC) respectively. containing a set of provisions, such as safety and emergency In CPC’s third LNG receiving terminal construction procedures; Simultaneous Operations (SIMOPS); fire-fighting project, OGE will conduct Front End Engineering & Design measurements; manuals overview for LNG bunkering (FEED) and provide technical consulting services on preparation and execution; training; and other pillars, which regasification facilities as part of building a 3 million tpy will allow Greek ports to accommodate LNG bunkering LNG receiving capacity in the first phase of a 6 million tpy operations. LNG terminal project planned to commence operation “Poseidon Med II project started three years ago in 2023. With this agreement following the previous one aiming at establishing the use of LNG as marine fuel in the signed in March, for consulting services on engineering and East Mediterranean region. It has since then worked towards construction of four full containment pre-stressed concrete this direction, using 26 partners’ know-how and expertise. (PC) LNG tanks for the terminal, OGE will provide consulting The Presidential Decree that was presented yesterday is a services for the entire first phase construction project. milestone for the project and the necessary step to establish In the meantime, with TPC, OGE has reached an the regulatory framework which will ensure the safe and agreement to conduct FEED and provide technical uninterrupted use of LNG as marine fuel. We are proud to consulting services to TPC for the first time on five full see Greece among the pioneers to adopt a comprehensive containment PC LNG tanks and regasification facilities for regulatory framework, demonstrating in this way that LNG TPC’s Taichung LNG receiving terminal, which is planned to is a sustainable solution. In parallel, Poseidon Med II has be built with a 4.1 million tpy capacity and scheduled to also advanced the technical aspects for the use of LNG, start its commercial operation in 2023 along with a power undergoing technical designs for ports infrastructure and plant in Taichung area. LNG fueled vessels, as well as environmental and economic With these contracts, OGE plays an integral part in basic feasibility studies which will facilitate the effective designs of all the LNG terminal projects currently going transition to the LNG era”, underlined George Polychroniou, forward in Taiwan, where LNG import has been growing to Poseidon Med II Project Manager, Executive Director Strategy, meet the increasing power demand while its government Development, Administration and IT, Public Gas Corporation, plans to phase out of nuclear power generation by 2025. DEPA S.A.

LLithuaniaithuania Klaipeda LNG terminal receives 50th cargo

n 25 May the 50th LNG reloading operation took place at imports totalling 5.4 million m³ of LNG. Othe LNG terminal operated by KN (AB Klaipedos Nafta). The average size of one load is 139 000 m³ of The 50th load was delivered to the Klaipeda port by the LNG, while the largest shipment was delivered to the Arctic Voyager. The LNG carrier delivered 140 000 m³ of LNG Klaipeda terminal by the Valencia Knutsen, which has a from a liquefaction plant in Norway. capacity of 173 000 m³. Since October 2014, when the FSRU Independence began Gas has been supplied to Lithuania from four countries: operations in Klaipeda, the terminal has received 42 LNG Norway, the US, Trinidad and Tobago, and Nigeria.

12 June 2018 /1*SHDNVKDYLQJDUH\RXUHDG\"

7KH/LQGH*URXSDZRUOGOHDGHULQ/1*WHFKQRORJLHV :HGHOLYHU KDVDSSOLHGSURGXFWVWDQGDUGL]DWLRQDQGPRGXODUL]DWLRQ Ř 3UHHQJLQHHUHGSURFHVVGHVLJQV WRWKH/1*LQGXVWU\2XUH[SHULHQFHDGGUHVVHV\RXU Ř 0RGXODUL]HGSODQWOD\RXW FRPSOHWHSODQWQHHGVLQFOXGLQJSUHWUHDWPHQWFRUH Ř 6KRUWGHOLYHU\WLPH

OLTXHIDFWLRQ/1*SURGXFWVWRUDJHDQGORDGLQJDQG/1* Ř 0LQLPDORQVLWHFRQVWUXFWLRQ

YDSRUL]DWLRQ Ř 6DIHVLPSOHDQGUREXVWWHFKQRORJ\ Ř 2SWLPL]HGHQHUJ\HꡝFLHQF\ Ř &DSDFLW\H[SDQVLRQV Ř 8SJUDGHVUHYDPSVUHSDLUVDQGUHSODFHPHQWV RIH[LVWLQJHTXLSPHQWOLTXHÀHUVSODWHÀQKHDW H[FKDQJHUVYDSRUL]HUV

/HDUQPRUH ZZZOHDPHULFDVFRPSHDNVKDYH

/LQGH(QJLQHHULQJ1RUWK$PHULFD,QF VDOHV#OHDPHULFDVFRP 14 LNG’s Peter Kiernan, The third Economist Intelligence Unit, UK, analyses the big US volumes entering wave the market in 2018 – 2019.

ollowing the LNG surge from Qatar (2009 – 2011), and regulators) are sanctioned, the US could shoot past Australia Ffrom Australia since 2015, it is now the US’ turn to make in terms of capacity, as the southern hemisphere LNG giant is a big impact on global LNG supply in 2018 – 2019. The reaching the end of its expansion phase with currently no US (lower 48) actually began exporting LNG in February 2016, further Final Investment Decisions (FIDs) on the horizon. but it will be over the next two years that American LNG Qatar, however, plans to expand capacity by 30% within seven exports will ramp up considerably, boosting the US to being years, in which case it will likely remain the global leader. the third-largest, in terms of liquefaction capacity, by the end That said, what ranking a country has in terms of export of this decade. capacity matters far less than the fact that, due to significant This is a far cry from the end of the last decade, when the volumes coming online soon, the US will be a key influencer US was gearing up to be one of the largest importers of LNG. in the characteristics of the global LNG market. Unlike LNG The shale boom has changed all that. With approximately from established suppliers, for example, US LNG will be priced 60 billion m3/year of capacity currently under construction in from non oil-indexed Henry Hub natural gas pricing, and sales the US – including four new terminals and an expansion of an are unlikely to be dominated by long-term contracting. While existing one – the US will become a key player in global LNG not wanting to overstate the impact, it can be safely said that markets, ranked third behind Qatar and Australia. If several US LNG will contribute to the shifting dynamics of the global further American projects (that have already been approved by LNG market going forward.

15 Enter US LNG of US LNG to European markets, even with European gas In February 2016, mainland US LNG exports began with demand rebounding, it comes as no surprise that the largest the first train from Cheniere’s Sabine Pass terminal on the market so far has been Asia. Substantial volumes of LNG sent US Gulf Coast beginning operation. In that year, total US LNG to Latin American markets such as Mexico, Chile, Argentina, exports – all from Sabine Pass – amounted to 3.6 billion m³, and Brazil over the last two years may have been a surprise to or just 1% of the global total. In 2017, with the fourth train some industry watchers, not to mention some cargoes heading at Sabine Pass completed, exports jumped to 16.8 billion m³, to Kuwait and the United Arab Emirates. While volumes from but still only just over 4% of the global total. As of February the US are to date quite small in the global context – not 2018, the US Department of Energy reported that over surprising that until recently only one terminal was operating 1036 billion ft³ (29.3 billion m3) of US LNG has been exported – this is about to change. since February 2016, with 44% of exports going to Asia, 33% In April this year the US mainland’s second LNG to other countries in the Americas, 12% to Europe, and even liquefaction terminal began operation – 11% to the Middle East. While there has not been a flood Dominion’s Cove Point plant with a capacity of 7.2 billion m³/year. This plant is located on the US East Coast Table 1. US LNG exports by destination in the state of Maryland, unlike other existing and proposed (February 2016 – February 2018). projects which are all located on the US Gulf Coast. Later this year Kinder Morgan and Southern LNG’s Elba Island Destination Billion ft3 terminal, which consists of 10 modular liquefaction trains with a total capacity of 3.6 billion m³/year, will open Mexico 193 (according to the US Energy Information Administration six of the trains will open this year and four in 2019). South Korea 190 Freeport LNG, with three trains for a total capacity of China 141 18.6 billion m³/year, is also expected to open at the end of 2018. Finally, a fifth train at Cheniere’s Sabine Pass will also Japan 75.1 begin operation later this year. Next year capacity will continue to be boosted with the additions of two more Chile 61.3 terminals – Cheniere’s Corpus Christi (two trains with Jordan 49.5 12.4 billion m³/year in capacity), and Cameron LNG (three trains with 18.6 billion m³/year in capacity). By the end of India 41.4 2019 there will be nearly 73 billion m3/year of US LNG liquefaction capacity that will be operational. This would put Turkey 40.6 the US in third position in terms of LNG export capacity, Argentina 32.9 behind Qatar (106 billion m3/year) and Australia (96 billion m3/year). Spain 32.3 Qatar has not added any capacity since the early part of the decade, while Australia is nearing the end of its Kuwait 27.3 expansion phase with just two more projects scheduled to Brazil 26.8 come online this year. This will enable Australia to surpass Qatar in total capacity (with an additional Portugal 26.5 17.2 billion m³/year coming online to take the southern hemisphere LNG giant up to around 113 billion m³/year). Egypt 16.9 However, no further Australian LNG projects have been UAE 16.8 sanctioned, and are unlikely to for some time, so with Qatar planning to add to its capacity by 30% over the next seven Taiwan 15.8 years, this Gulf state will likely resume its leading role after being briefly eclipsed by Australia. Dominican Republic 11.6 The schedule of US LNG projects under construction is Italy 9.8 expected to finish by the end of 2019, but that may not be the end of US LNG expansion. There are several projects that Lithuania 6.8 have not yet received an FID, but which have been approved by the Federal Energy Regulatory Commission (FERC). Pakistan 6.5 Depending on market conditions going forward at least Poland 3.4 some of these projects could eventually be sanctioned. According to Charles River Associates there are five such UK 3.4 projects awaiting an FID, with a total capacity of over 74 billion m3/year. Theoretically this would double US LNG Thailand 3.1 capacity from when the current phase of projects under Netherlands 3 construction are completed, but it is difficult to ascertain over what time period this would occur, or if all of these Malta 0.9 projects will go ahead. Much depends on variables such as

Source: US Department of Energy the strength of future LNG demand, pricing, and other sources of supply entering the market.

16 June 2018

Table 2. US LNG export capacity timeline. Meanwhile global LNG demand has gathered momentum since Total capacity Project Start year Developer (Billion m3/year) 2016, with growth of 7.5% in that year followed by a 9.9% Currently Operational increase in 2017 (followed by average annual growth of just Sabine Pass (5 trains) 2016 31 Cheniere 0.5% between 2012 and 2015). Cove Point 2018 7.2 Dominion Last year China’s requirement for LNG rose Sub total 38.2 dramatically, to the point that it became the second-largest Under Construction LNG importer, while Europe’s Elba Island (10 modular trains) 2018 3.6 Kinder Morgan-Southern LNG LNG imports increased following some years of Freeport (3 trains) 2018 18.6 Freeport LNG stagnation. Furthermore, five new countries have begun Corpus Christi (2 trains) 2019 12.4 Cheniere importing LNG for the first Cameron (3 trains) 2019 18.6 Sempra-Cameron time over 2016 – 2017 (Colombia, Finland, Jamaica, Sub total 53.2 Poland, and Malta). The use of floating storage and Approved by FERC but not under construction regasification technology by Lake Charles (3 trains) 21.7 Lake Charles LNG-Shell more recent LNG importers has increased, contributing to the Golden Pass 21.7 Qatar Petroleum/Exxon Mobil rebound in demand in the last two years. China, however, was Magnolia LNG 11.4 LNG Ltd. the big story in 2017, as its Corpus Christi (1 train) 6.2 Cheniere LNG imports grew by 44% from the year before. This rebound Cameron (2 trains) 13.4 Sempra-Cameron in demand, combined with the fall off of new construction of Sub total 74.4 liquefaction projects, has prompted a re-assessment of the view of a prolonged glut Total 165.8 characterising the market over the next decade, to one where Sources: Charles River Associates, US Energy Information Administration market fundamentals could Note: Total capacity refers to final capacity of each project once all trains have become operational. tighten much earlier. In the next few years the continued additions of Table 3. US LNG exports by year, share of global total. liquefaction capacity in the US, Australia, Russia, and elsewhere will keep the supply-demand balance relatively 3 Billion m % of total soft. Further down the track however, perhaps in the early 2020s, there could be signs of tightening if demand growth 2016 3.6 1 in LNG remains as strong as it has been since 2016. If this

2017 16.8 4.2 proves to be the case, Qatar’s intention to increase capacity will come at a crucial time, but there may be a need for Source: GIIGNL additional capacity to come online elsewhere as well; including new projects in the US that have already been approved by regulators. Glut or shortage? The LNG market has shown it can go through cycles, like Until recently the narrative regarding the global LNG market the oil market, where expectations of oversupply are before was that, due mainly to capacity additions in Australia and long replaced by fears of shortages. The infusion of Australian the US, the LNG market would be oversupplied for some and now American LNG is being followed by a sudden upturn time (at least until the mid-2020s). However the collapse in demand as a host of countries have entered, or are about to of oil prices in 2014 has led to a commensurate fall in enter, the market as small scale LNG importers to meet their oil-indexed LNG prices, causing the delay or cancellation of seasonal gas supply needs. Furthermore China is acting on the several proposed liquefaction projects (including in Canada, aim to boost the share of natural gas in its energy mix. Should East Africa, and even some in Australia and the US). Due to the strengthened annual growth in LNG demand continue new project approvals grinding to a halt in the last few years well into the next decade, additional US LNG capacity – there has been a marked fall in the number of additional beyond what is already under construction – would likely be liquefaction projects entering the construction phase. required in the 2020s.

18 June 2018

Making history

Figure 1. Cheniere’s Sabine Pass liquefaction project.

20 Eben Burnham-Snyder, ust a few weeks after the J World Gas Conference ends in Cheniere Energy, USA, gives Washington D.C., the US Capital will host the 2018 All-Star game for an overview of the current Major League Baseball. At that game, like any All-Star exhibition for any sport around the status of the company’s world, fans will see the unique combination projects and outlines why it of attributes that put these athletes at the top of their field – speed, size, and flexibility, is well-placed to compete for to name a few. future demand.

21 It is a similar combination of attributes that have made complete. These two trains are expected to become fully Cheniere a significant player in the global LNG game. The operational in 2019. Following the recent signing of company has come to the market with speed, with agreements with Trafigura Pte. Ltd. and a subsidiary of the approximately 300 LNG cargoes produced, loaded, and Chinese National Petroleum Corporation, along with the exported in just over two years, to more than two dozen existing long-term contract with Energias de Portugal S.A., countries and regions. Cheniere has entered that same market Cheniere expects to make a final investment decision on with impressive size – indeed, when all trains under Corpus Christi train three in 2018. When all three trains construction at the Sabine Pass and Corpus Christi are completed at Corpus Christi, the aggregated nominal liquefaction projects are online, the company will comprise production capacity of the project is expected to be almost 50% of all US supply online or under construction and 13.5 million tpy of LNG. is expected to be one of the top five LNG sellers in the Cheniere’s growth plans do not stop there. They have industry. Furthermore, Cheniere has done all of this with also purchased land adjacent to both projects to allow for flexibility; providing destination-free contracts and the further expansion at each location and are considering a potential to buy additional volumes of LNG in the near term midscale liquefaction development as well. that gives customers the ability to access US natural gas now Building trains is only part of the challenge of and send it where the market demand is greatest. Finally, like growing the largest LNG export platform in the any young-but-proven athlete, Cheniere also feels like it is United States. Currently, Cheniere delivers more than just getting started. 3 billion ft3 per day of natural gas to its Sabine Pass It starts with a strong foundation laid by the construction, facility, making them one of the largest gas consumers in operations, and natural gas supply teams. the US, and is expected to top 6 billion ft3 per day when trains currently under construction are online at both Building the platform facilities. To keep the gas flowing, Cheniere has contracted Cheniere is developing, constructing, and operating for firm transportation capacity on third party pipelines, two LNG plants on the US Gulf Coast. The Sabine Pass built pipelines to its facilities and has also started to look liquefaction project, located in Southwest Louisiana, for other infrastructure-based opportunities to unlock currently has four fully-operational trains. Cheniere’s low-cost, stranded resources. ability to bring those trains online, ahead of schedule and within or under budget, has provided additional volumes Meeting demand growth to the market ahead of the start of long-term contracts. Cheniere’s LNG platform is growing at a potentially At Sabine Pass, Cheniere is still growing. A fifth train is opportune time. As countries focus on reducing their under construction and is expected to become operational carbon footprint, improving air quality, and supplying in 2019, and a sixth train is fully-permitted and being affordable and dependable energy to growing commercialised. When all six trains are completed, the populations, the benefits of natural gas as a fuel are aggregate nominal production capacity of the Sabine Pass continuing to be recognised. As a result, in 2017, the liquefaction project is expected to be 27 million tpy of LNG. International Energy Agency (IEA) forecast that the growth Cheniere’s Corpus Christi LNG project is under in natural gas demand in the primary energy mix to construction in South Texas, where stage one of the 2040 will be second only to that of renewables, with gas development, which consists of two trains, is over 80% becoming the second largest fuel in the global mix after oil. LNG is playing an increasing role in meeting that growing global gas demand. At present, LNG accounts for approximately 10% of total natural gas consumed worldwide. But as domestic production in many countries peaks and they look beyond the reach of pipelines for diversification of supply, LNG is increasingly being used to secure additional gas. By 2040, it is estimated that LNG will have Figure 2. Cheniere’s Corpus Christi liquefaction project. increased its market share to 15% of total

22 June 2018 natural gas consumed, with overall natural gas result, US LNG is making the global natural gas trade consumption having increased nearly 50% by that time. more competitive, more responsive to customer needs, and Cheniere estimates that the LNG trade will grow from more resilient. This means that natural gas will be a more approximately 290 million tpy in 2017 to close to economic and secure fuel for buyers around the world. 480 million tpy by 2030. Production from existing plants Many customers are, of course, still looking for and those under construction is projected to meet demand supplies starting in a few years’ time. Yet, for those who growth until just after 2020, but after that, new supply are also looking for US natural gas now, Cheniere has the capacity is expected to be needed. Cheniere estimates advantage over proposed US projects, insofar as Cheniere that an additional 150 million tpy of LNG will be needed has volumes available right now. Indeed, it has by 2030 to meet the expected growth in demand, intentionally kept some volumes back for this purpose. suggesting that close to 40 additional production trains Finally, Cheniere’s full-service model offers an easier will need to be put into production by this date (assuming way to access US natural gas, especially for emerging 4.5 million tpy production per train and an 85% average markets. Cheniere can undertake all activities along the industry utilisation factor). supply chain, from gas purchasing to cargo delivery. Cheniere has also established a good working relationship Benefits of US LNG with the Panama Canal, which is consulting with the While Cheniere was one of the first to see the potential of industry on expanding and reforming its LNG transit regime US natural gas to supply LNG exports, the company is just to allow for more access to LNG in a more efficient manner. one of many recognising the potential of global natural gas demand. In a competitive LNG market, replete with History made major players and state-supported producers, why should Cheniere has experienced rapid growth in its LNG export Cheniere and US LNG continue to fill the expected gap platform over the past two years. This has been an between supply and demand? Cheniere believe that there astounding story for the company. Cheniere made history are a number of good reasons. as the first company to develop a commercial LNG export Firstly, Cheniere’s US LNG is reliable. The company’s project in the contiguous US (Sabine Pass liquefaction track record of delivery – bringing four trains online ahead project) and as the first company to develop a commercial of schedule and on or under budget – means customers green-field LNG export project in the contiguous US (Corpus can be confident that their gas will be ready, especially in Christi liquefaction project). And, with the signing earlier an LNG field littered with projects that have run late or this year of the first long-term sale of US LNG to a trading stretched budgets. house (Trafigura) and the first direct LNG deal between the Secondly, Cheniere’s US LNG is affordable. Henry Hub US and China, Cheniere continues to make history. prices averaged US$2.99 per million Btu in 2017, and the Energy Information Administration (EIA) is predicting that average to fall to US$2.88 for 2018. And, as the single largest physical purchaser of natural gas on a daily basis in the US, marked to Henry Hub, the most transparent and liquid gas price index in the world, Cheniere can access a competitively priced gas resource every day. Meanwhile, the EIA continues to revise upward the US natural gas reserves, increasing the proven reserves by 5% Others simply sell in February 2018, with technically recoverable reserves you a product – now standing at more than 2000 trillion ft3 of dry natural we offer gas in the US. This prolific resource is bringing price stability, which Cheniere expect to result in US LNG a solution. marked to Henry Hub being less volatile than oil-indexed formulae, and allowing customers to better plan their future capital needs. In addition, Cheniere’s relative low-cost infrastructure compliments the low-cost and abundant US resource. The cost of building LNG facilities on the US Gulf Coast is one of the lowest in the world. As the company completes its initial investment of US$30 billion in infrastructure for the trains currently completed or under construction, Cheniere is also able to leverage the cost advantages of expanding an existing platform rather than building from the start. A low-cost expansion LNG infrastructure combined with abundant, accessible, low-cost, gas is a winning LNG Best Valves combination in the competition for future LNG demand. SERVICE since 150 Thirdly, Cheniere’s US LNG is flexible. Destination- Years flexible US LNG offers buyers more control over their portfolio; something they are very keen to have as gas OHL Gutermuth Industrial Valves GmbH markets not only grow, but become more competitive. As a Helmershäuser Straße 9+12 · 63674 Altenstadt / Germany Phone +49.60 47. 80 06-0 · Fax +49.60 47.80 06-29 www.ohl-gutermuth.de · [email protected] Has boutique LNG gone mainstream?

Kindra Snow-McGregor art 1 of this article, (published in PLNG Industry: May 2018), considered the development and John Sheffield, of the ssLNG business focussing on the development of virtual pipelines in Australia, China, and Argentina, where Petroskills|John M Campbell, LNG was being used to transfer gas from stranded fields to remote power generation stations. The development USA, examine the of the use of LNG as a fuel for marine transportation was development of LNG in also examined focussing on the extensive developments in Europe. Part 2 will shift the focus to North America and North America as both a examine the development of LNG as a transportation fuel in road, rail, sea transport, and as an alternative for flare gas transportation fuel and reduction/utilisation from remote shale plays. an alternative for flare gas Road transportation In North America, the development of LNG for transportation reduction/utilisation. has been significant, largely driven by the abundance of shale

24 Part 2

25 gas, and environmental pressures to reduce emissions. The The two largest LNG/CNG fuel producers and distributors natural gas/LNG transport industry in the US has over 1700 are Clean Energy Fuels, and Applied LNG. Both companies natural gas refuelling stations, many of which are open to the market that is collected in landfills, public. There are approximately 1640 CNG stations, and 123 waste water treatment facilities, and anaerobic digestion LNG refuelling stations. The LNG for these outlets is supplied plants, processed, and injected into the US natural gas from a variety of sources including: transmission grid. The recovered greenhouse gases in RNG z The use of some of the more than 100 peak shaving would have otherwise been vented to the atmosphere, making plants. this option marketable as ‘renewable’ energy. The pipeline gas is then converted to LNG for refuelling stations at various z From large scale liquefaction plants/import terminals. locations around the US. z Small scale liquefaction plants taking gas from pipelines. In addition, Shell and Prometheus Energy are establishing z Small scale liquefaction plants located on small reserves a network of LNG refuelling stations across the interstate or associated gas. highway network. According to the alternative fuels data centre, there are more than 150 000 vehicles in the US that are powered by natural gas. Drilling rigs in North America are also being converted to use natural gas fuels. Back in 2005, Encana started testing natural gas to be used as an alternative fuel for their drilling rigs. They established that natural gas and LNG drilling rig options were both economically and, more importantly in the US, socially viable. In 2010, the company opened its first natural gas fuelling station in Louisiana. This was the first step in their multi-year plan to convert more than 1300 trucks and passenger vehicles in their fleet to run on natural gas. Since this pioneering effort lead by Encana, many of the drilling rigs, heavy-haul trucks and passenger vehicles in Figure 1. Raven Trucking LNG Trucks (courtesy of North America are now fuelled by LNG and natural gas. Florida East Coast Industries). This has resulted in significant growth of small scale LNG facilities and projects in the US due to the demand in fleet transportation. Examples of companies converting to natural gas fuel alternatives include: FedEx, UPS (United Parcel Service), USPS (United States Postal Service), Ryder Hauling, Raven Transport, and multiple municipal public transportation networks and airports. As an example, Raven Transport, which services the Southeast, Mid-Atlantic, Mid-West, and Northeast, owns 500 trucks – the majority of which have been fully converted to run on LNG. Virtual pipelines, and multiple filling stations for LNG have been developed to meet the US market demand. Rail In 2016, the Alaska Rail Road Company (ARRC) transported the first LNG by rail in ISO containers in the US. This testing Figure 2. FEC Railway LNG fuel tender and locomotive was done to demonstrate rail as a means of moving LNG from (courtesy of Florida East Coast Railway). Anchorage to Fairbanks where the LNG can be use as fuel for road transportation and power generation. Even though LNG is commonly safely transported by rail in Canada, Europe, and Japan, there was much local resistance and opposition to the LNG rail transport in Alaska at that time. In 2015, the Florida East Coast Railway began testing operations on LNG. In 2017, FEC Railway converted its entire line-haul locomotive fleet to run on LNG. The new 24-unit fleet consisting of 12 pairs of back-to-back GE ES44ACs, with a purpose-built Chart Industries fuel tender in-between, was rolled out. In addition to the LNG powered locomotives, FEC Railway is the first railroad to haul LNG as a commodity in the lower 48. FEC Railway owns and operates an LNG plant in Titusville, which provides the source of LNG for their operations. The locomotives are EPA Tier 3 compliant and have Figure 3. New Fortress Energy LNG ISO container (courtesy of Florida East Coast Railroad). dual-fuel capabilities. The engines can run on both diesel and LNG with up to 80% gas substitution and 100% diesel. The

26 June 2018 gas substitution method retains the diesel for compression Shell Offshore Inc. has three LNG powered OSVs in ignition purposes, which eliminates the need for batteries for Port Fourchon, Louisiana. The Harvey Liberty, Harvey Energy, start-up. and Harvey Freedom, to support their deep-water operations in Chart Industries designed and built the fuel tender that the Gulf of Mexico. The Harvey Liberty runs on 99% LNG fuel, sets these units apart from conventional locomotives, as and can operate for up to 15 days before refuelling. The shown in Figure 1. They consist of a 150 m³ cryogenic tank vessel is 302 feet long and operates on three dual-fuel permanently mounted in a railcar that has been designed to Wartsilla engines. In 2015, the first truck-to-vessel transfer survive side impact and derailment scenarios. LNG content is occurred in Pascagoula, to the Harvey Energy, representing the determined by weight, not volume, thus scales are provided at first LNG ship bunkering in North America. each fuelling station. The tender car can be filled from empty The ships were provided by Harvey Gulf International in 90 minutes, providing the amount required for up to Marine, and are refuelled at Harvey Gulf International’s LNG 900 miles of heavy haul service, with a maximum operating marine fuelling facility in Port Fourchon, LA. This was the first speed of 60 mph. marine LNG fuelling facility in the US, with a final design FEC Railway is also serving as a virtual pipeline for LNG storage capacity of 1000 m³ of LNG, and capable of by hauling LNG ISO containers for their affiliate, transferring 114 m³/hr of LNG to not only marine vessels, but New Fortress Energy, between the New Fortress Energy’s also over-the-road vehicles. Shell, Q-LNG Transport, and liquefaction plant in Hialeah and Port Miami and Harvey Gulf signed a long-term LNG transport contract in the Port Everglades. FEC Railway own and operates an Intermodal fall of 2017 to deliver LNG as a fuel source to various ports in Container Transfer Facility adjacent to Port Everglades. Florida and the Caribbean.1 Q-LNG has contracted with VT Halter Marine for the Marine construction of America’s first offshore LNG Articulated Tug The establishment of Emission Controlled Areas (ECAs), and (ATB).1 This LNG bunker barge will have the along both the East and West coast of the US, has resulted in capacity to carry over 4000 m³ of LNG fuel. As the first of its significant activity to develop LNG fuelled marine transport; kind vessel to be based in the US, the LNG bunker barge will particularly for inter-coastal traffic. The Jones Act, which supply LNG to marine customers along the southern determines that coastal marine traffic should be US built East Coast of the US and support growing cruise line demand and crewed has led to significant ship building activity to for LNG marine fuel. The LNG bunker barge will be owned and construct small container ships, , Offshore Supply built by Q-LNG Transport and operated by Harvey Gulf Vessels (OSVs), and small LNG carriers to be bunker ships. International Marine. LNG to TOTE Maritime operations, is constructing a small scale LNG facility and marine loading jetty at Dames Point, on the St. Johns River. This facility is North America’s first small scale waterfront LNG production facility. TOTE Maritime has committed to converting their entire fleet to running on LNG, with conversions for their vessels operating in Alaska to be completed by 2021. Another example of innovative project development has been used by New Fortress Energy, a US based energy company, to develop projects in Jamaica that they have funded Figure 5. Q-LNG Transport LNG Articulated Tug and Barge and supplied LNG for. The projects include three LNG power (courtesy of Harvey Gulf International Marine). plants purchased by Jamaica Public Service Company. The location of one of the power stations in Montego Bay is not accessible by standard LNG carriers (LNGCs) and a large LNGC has been chartered from Golar to act as an FSU moored on the other side of the island in an industrial area of Kingstown harbour. The LNG cargo is then bulk-breaked into small parcels of 6500 m3 and transported to Montego Bay in a small LNGC, the Coral Athena. This interim measure has enabled the power station to operate on gas earlier whilst an FSRU will eventually be located to supply additional gas supplies. Flare gas reduction The Galileo Cryobox technology has also been deployed in the USA for the Terra Energy Group in North Dakota to reduce gas flaring at the wellhead. The process includes a Galileo ZPTS® Gas Conditioning Plant, and a Cryobox® Nano LNG station. The station converts natural gas into 13.6 – 14.8 tpd of LNG based upon well production. The LNG is stored on-site, with the boil-off gas being recovered and re-liquefied. The LNG is transported and consumed for drilling rig power generation, and frac-water heating for Terrra Energy’s operations in the Bakken play. Figure 6. Bunkering of MV Isla Bella (courtesy of TOTE Dresser-Rand commissioned the first micro scale LNG Maritime). facility in Pennsylvania’s Marcellus Shale in late 2017. The unit was installed at the Ten Man LNG facility in Tioga County. This unit allows Frontier Natural Resources (the operator) to monetise stranded gas assets in the Mainesburg field. The scope of supply included four different modules and requires a footprint of roughly 508 m². Conclusion The innovative application of small scale LNG technologies is enabling great progress to be made in improving the environment. Using LNG as a fuel for marine, rail, and road transportation reduces the emissions from diesel and oil fuelled engines and is being demonstrated to do this in a safe and economic manner, for multiple years in the US. In addition, Figure 7. Galileo Cryobox® installation in the Bakken for using small scale LNG as an option to reduce well-site flaring, flare gas reduction (courtesy of Galileo Technologies). and recovering otherwise stranded gas in North America provides additional market opportunities, reduces emissions in a cost-effective manner. The Global Demand of the small TOTE Maritime owns the world’s first LNG powered scale LNG market is projected to grow to at a compound rate of , the MV Isla Bella. During the initial voyages of roughly 7% per year from 2017 – 2023 to around 50 million tpy. the ship from Florida to Puerto Rico, 400 m³ of LNG were Much of this growth will occur in North America where the bunkered from multiple TOTE-owned LNG ISO containers in enhanced supply of natural gas will ensure a wide range of 2015. Since the initial voyage, more than 114 000 m³ of LNG opportunities to be developed. have been successfully transferred from truck to the ships fuel tanks. References TOTE’s Isla Bella and Perla del Caribe each use 25 ISO 1. ‘Shell, Q-LNG Transport and Harvey Gulf sign long- term containers trucks to refuel each week in Jacksonville LNG transport contract’, Q-LNG Transport, LLC/Harvey Gulf (approximately 900 m3). JAX LNG, the partner and supplier of International Marine, LLC, Nov. 2017.

28 June 2018 EngineEEnginengine evolutioneevolutionvolution

Drew Robb, NG-powered vessels have been with L us for some time. There are now Robb Editorial, more than 200 such vessels either operating or on order. However, current UK, examines the designs have shortcomings in terms of harmful emissions, lifecycle costs, and evolution of LNG in equipment footprint. As a result, various parties have been propulsion, and where looking at ways to make the technology the technology is more efficient and significantly lower their environmental impact. The most heading. promising studies involve the replacement of reciprocating (piston) propulsion engines with electric motors. LNG powered turbo generators raise the motor

29 electrical load and that of all other on board, or ‘hotel’, COGES provides both power and propulsion. Its load. emissions levels meet International Maritime Organisation (IMO) Tier III and US EPA Tier 4 regulations, with no COGES requirement for exhaust treatment or methane slip. Its GT GE Marine Engines’ COmbined Gas turbine Electric and and ST are united on the same shaft with an SSS clutch Steam (COGES) system popularised the use of LNG in sitting between them. larger ships. Originally appearing in the early 1990’s, this approach is now used on eight different cruise ships Waste heat (COGAS is a similar design – COmbined Gas And Steam The EMMA , introduced in 2006, was Maersk’s first turbine system– which uses turbines from Solar Turbines). ‘E-class’ ship and the latest container vessel to use waste An alternate COGES design proposal is an heat recovery technology in a maritime setting, realising LM2500-family GT for electrical generation, supplemented improvements from its predecessor class of the 1990s. by a heat recovery system to drive an additional steam For many years, the EMMA Maersk containership was the turbine (ST) generator. Another design shift being biggest ship on the seven seas with the largest diesel considered is removing one generator and coupling the ST engine in the world. Its 80 MW Wärtsilä 14RTFlex96C to a single generator through an SSS Clutch; the engine includes four ABB TPL85-B turbochargers, and a advantage being reduced footprint and reduced CAPEX. waste heat recovery system. This last element features These COGES vessels can operate on various fuels an ABB TPL3200 power turbine which is coupled to the including LNG or marine gas oil. Their compact footprint main power generation steam turbine through an SSS allows more space for additional cargo or passengers. The clutch. The power turbine delivers an additional 3.35 MW COGES arrangement is 80% lighter and 30% smaller than while the waste heat recovery provides 6.5 MW of power comparable two-stroke diesels. In addition, the system via the ST. In total, about 10 MW is recovered from the offers lower life cycle costs. engine exhaust. This dropped fuel consumption by almost 8%. Despite this, criticism centred upon the high sulfur content of the fuel, which was said to be several orders of magnitude greater than that allowed by current automotive fuel standards. Maersk upped the ante again in 2013 with the launch of its Triple-E (economy of scale, energy efficiency, and environmentally improved) container. Its Mitsubishi Energy Recovery Systems (MERS) allowed it to burn 35% less fuel

and emit 50% less CO2 per container compared to the typical ships plying the Asia/Europe route. The Triple-E has 16% more capacity than the earlier E-class ships such as the EMMA Maersk. Yet its ultra-long stroke, 43 000 hp engines from MAN Diesel & Turbo allowed Figure 1. A skid mounted Peter Brotherhood waste heat recovery system like this one operates inside all Emma Maersk E-Class Series supercontainers (photo credit: operation at lower RPMs. Peter Brotherhood Ltd.). The MERS Super Turbo Generating (STG) system harnesses heat from the

Figure 2. Machinery layout for the waste heat recovery system shown in Figure 1.

30 June 2018 Innovating together

With our clients and partners, we are pushing the limits of technology to ensure the success of today’s most ambitious energy infrastructure projects.

We have engineered and delivered a diverse portfolio of LNG plants from midsize to very large, onshore and offshore, and typically in remote locations.

We are uniquely positioned to deliver greater efficiency across project lifecycles from concept to project delivery and beyond.

Our end-to-end coverage of the gas chain is unique among engineering and construction companies.

Discover more. TechnipFMC.com them onto one shaft include: Capital savings, a smaller emissions footprint, and higher efficiency. In this arrangement, waste heat is recovered from the GT to operate the ST. As a result, efficiency levels of more than 60% are routinely achieved in power plants. The steam turbine drives a generator, which powers onboard electrical loads. Alternatively, steam can be used for onboard heating and cooling if desired. LNG-powered ships Far from being pie in the sky, large LNG-powered vessels are on the horizon. Gas turbine OEMs such as GE and Solar Turbines have Figure 3. The SSS Clutch helps return 6% propulsion energy to Emma Maersk E-Class signed agreements to forward this Series supercontainers (photo credit: Jesper T. Andersen / jtashipphoto). technology. The PERFECt project, for example, involves ABB, OMT, GTT, Solar Turbines, CMA CGM, its exhaust gas to create steam to drive a steam turbine subsidiary CMA Ships, and DNV GL. Early results show generator. The exhaust gas pressure drives a geared turbo promise for an electric-driven 20 000 TEU ultra-large expander, coupled to the same generator. An SSS clutch container vessel with a LNG-fuelled combined cycle gas sits between the turbo expander gear and generator. This and steam turbine (COGES) electric power plant. It utilises overrunning clutch automatically connects when the LNG as a primary fuel, in concordance with the basic driver exceeds the speed of the load and disconnects COGES system. As the power plant and LNG tanks are when the driver slows below load speed. According to situated below the deck house, space is freed up for more Hans Christensen, a consultant engineer for container slots. Total efficiency is increased by around 5%. Turbo Marine Consult apS, the MERS STG produces There are downsides, of course, to this idea. It requires 2.4 – 2.8 times more power than a conventional MERS a more complex fuel tank design, and the need for system. Overall, this innovative design reduced fuel refueling terminals, as well as the increased cost of fuel.

consumption and CO2 emissions by approximately 9%. LNG carriers, therefore, might be the first ones to embark upon this approach, harnessing the fuel they already carry Not enough and the LNG infrastructure already established Gains clearly have been made over the years. Yet with aboard and at their ports of call. By doing so, they gain almost 3% of global greenhouse gas emissions traced to greater efficiency and will face fewer fines for using dirty international maritime shipping according to the IMO, fuel. improvements in efficiency and emissions levels are being demanded. As a result, the dominance is being An LNG-fuelled future? challenged of two-stroke engines with turbochargers in There is still a long way to go before LNG-fuelled large vessels. Waste heat recovery has made a difference, vessels rule the ocean. In the meantime, steps are but further improvement is called for in an ever-more being taken in that direction. As well as the PERFECt environmentally conscious world. A sulfur cap for shipping project, GE is pursuing a COGES project in partnership is looming with a 2020 deadline. And that is where with Youngsung Global, Dintec, Far East Ship Design LNG-powered GTs come into the picture. GE already has & Engineering Co (FESDEC), and Cryos. Instead of LNG, experience in the world’s first LNG gas turbine-powered however, this will be a Liquid Propane Gas (LPG)-fuelled vessel Buquebus’ Francisco, which is said to be the fastest COGES . commercial ship on the planet. Each GT drives her main Goals for the project include better safety and reduction gearboxes through SSS Clutches. efficiency, a drop in operating costs of 35%, and a In a refinement of the COGES concept, LNG is used to reduction in nitrogen oxide and carbon dioxide emissions drive a gas turbine generator, which powers the onboard to meet IMO standards. electrics, hotel load, and the (electric) main propulsion The success of that project could have a major bearing motors. This is based on the popular combined cycle on future designs. If the LPG-fuelled ferry realises its configuration which has become the standard for promise, it is likely to encourage GE and other OEMs to efficiency and low emission levels in power plants around take the next step up and invest in a large LNG-powered the world. The majority of power plants, these days, favour container vessel. It may take a few years for more designs a combined cycle design fuelled by natural gas. The steam to appear. But within a decade, it is likely that we will see turbine and gas turbine are coupled onto the same shaft a great many more LNG-powered vessels in service around with a clutch in between. The benefits of aggregating the globe.

32 June 2018 Jörg Müller, TGE Marine t is always an exciting moment when a ship runs on I LNG for the first time during a sea trial. The engine Gas Engineering, Germany, control room is full of people, gazing at the control panels. When the systems confirm ‘Engine Gas Operation’, states the case for LNG as the satisfaction of owners, crew, yard personnel, and system suppliers is great. It is a long journey from the the best fuel to significantly initial concept of running a vessel on LNG through to successful commissioning, but the warm fibrillation, reduce emissions from instead of smoke, above the funnel proves that the idea is marine vessels. sound and the project is on the right track. Development of LNG systems – fuel gas systems on small scale vessels The idea of using LNG as a clean fuel for ships emerged in Norway where it was used to fuel car and passenger ferries. The sparse availability of bunker vessels could be bypassed in this instance due to the fact that these ships berthed in the same harbours every day. Therefore, New drivers

Figure 1. Knowing both sides of the bunkering flange: LNG bunkering of the Navigator Aurora of Navigator Gas Management by the LNG bunker vessel Coralius of Skangas. TGE Marine Gas Engineering has delivered both, the LNG fuel gas system for the Aurora and the cargo handling system for the Coralius.

33 bunkering by shore-side bunker stations or road truck was introduction of LNG bunkering vessels into the market, possible. Later on, the ferries were followed by mostly by companies such as Shell, Engie, NYK, Mitsubishi, and coastal vessels which could likewise be bunkered by Skangas, solving the often-quoted ‘chicken and egg’ trucks. problem. New drivers for LNG as fuel – TGE’s entry to the LNG fuel gas bunker vessels market and the first two stroke The limited availability of bunker facilities delayed ME-GI fuel gas system the ramp up of applications. This changed with the The first LNG fuel gas system which TGE Marine Gas Engineering delivered was installed on the Coral Methane, a small scale LNG carrier equipped with 4-stroke gas engines which require a natural gas supply pressure of 6 barg. For this operation, well known equipment in the industry could be utilised. However, new technology had to be developed when MAN launched the 2-stoke ME-GI engine, running on the energy efficient diesel cycle. This engine requires a gas supply pressure of approximately 300 barg, and therefore new equipment was required to assist with its installation on seagoing vessels. The first vessel running the ME-GI engine was the Q-max LNG carrier Rasheeda of Nakilat, for which TGE Marine Gas Engineering delivered the LNG fuel gas system when the vessel was converted to LNG propulsion. The high pressure fuel gas supply system was developed in close cooperation with the engine supplier and equipment manufacturers. Since then, TGE Marine Gas Engineering has provided various 300 barg high pressure fuel gas systems, in addition to low pressure fuel gas systems with 16 barg or rather 6 barg gas supply pressure; serving all different types of dual fuel and pure gas engines of most major engine manufacturers. After the conversion of the Rasheeda, further newbuilding projects with high pressure LNG fuel gas systems delivered by TGE Marine Gas Engineering followed at short intervals: Two car carriers of UECC which trade in European ECA zones, and a series of Ethane gas carriers for Navigator Gas Management with 2 x 1200 m3 Figure 2. Warm fibrillation instead of smoke above the LNG storage tanks on an open deck. Furthermore, at the funnel of the Wes Amelie after conversion to LNG; the LNG tank and the fuel gas system for this conversion were beginning of 2018, KEPPEL AmFELS (US) selected delivered by TGE Marine Gas Engineering. TGE Gas Engineering for the construction and supply of a high pressure LNG fuel gas system for two container ships to be operated by the US company Pasha. This is the second project for TGE Marine Gas Engineering for the delivery of high pressure LNG fuel gas systems to shipyards in the US; further to two ConRo vessels for Crowley (US) constructed at VT Halter Marine (US). Tailor made designs for fuel gas systems Depending on the design parameters such as storage capacity, number of tanks, engine consumption and concept, required bunkering rate, and arrangement of the system Figure 3. Looking inside: Impression of high pressure LNG fuel gas system inside LNG fuelled UECC car carrier. components, tailor-made solutions for LNG fuel gas systems have

34 June 2018 Big LNG expertise. Also available in small LNG plants.

Air Products has contributed to the success of more LNG operations than any other company. And we bring our full capabilities to LNG projects of any scale, from peak-shaving plants producing less than 0.1 MMTPA to the largest base-load facilities, on land or off-shore. Our LNG team can help you get a plant up and running at the highest efficiency—on time, on budget, and in any climate. To learn more, call 1-800-654-4567 (US), 1-610-481-4861 (worldwide) or visit us online.

tell me more airproducts.com/LNG

©2017 Air Products and Chemicals, Inc. By means of the LNG pump, the LNG is transferred towards the LNG vapouriser. A fuel is installed in order to provide vapour at the right temperature via a fuel gas master valve to the gas valve unit (GVU). The GVU reduces the pressure to the required value of the engines and is usually part of the engine manufacturer’s supply. When using larger tank volumes high design pressure will increase the cost significantly. The tank design pressure can be reduced by including a compressor in order to supply the boil-off gas (BOG) to the engine. Using a compressor system allows for further operations such as fuel gas supply from the tank vapour phase to decrease or Figure 4. 3D model of a low pressure LNG fuel gas control tank pressure prior bunkering, warming-up of the system serving a 2 stroke WinGD engine with three piping system and tanks with hot gas, and increasing vertical installed foam insulated IMO Type C tanks (under bunkering rate without vapour return by providing BOG to construction). the auxiliary engines. High pressure fuel gas systems The MAN ME-GI 2-stroke engines requires another system due to the high injection pressure of 300 barg. Using BOG compressors is only useful in certain cases, due to the need for large investment, high power requirements, and the large size and weight of such high pressure compressors. High pressure pumps, in combination with high pressure vapourisers and heaters, have been installed in all TGE high pressure fuel gas system applications in order to achieve the required pressure level. Similarly, tanks have been equipped with in-tank pumps to feed the high pressure pumps as well as the low pressure (6 barg) consumers; such as auxiliary engines and dual fuel boilers. Storage of deep cold LNG on board as fuel Figure 5. Installation of tailor made vacuum isolated tank on board of Bergen Viking, serving pure gas engines. With respect to storage, one disadvantage of LNG is its low density compared to oil which requires bigger fuel tanks. There are several types of containment systems for LNG available but some of them are not feasible for the given conditions on ships using LNG as fuel. Hence IMO type C tanks (pressure vessels) turn out to be the preferred solution. Firstly, the tanks are very safe and reliable, secondly, their high design pressures (4 – 10 barg) allows high loading rates and pressure build up due to boil-off, and finally, they are easy to install and less expensive than other solutions. All LNG fuel tanks delivered by TGE Marine Gas Engineering are of this type. Membrane tanks are also generally feasible for fuel gas tanks, however their design pressure is much lower – typically around 250 mbar only. Requirements for pressure control and the use of a secondary barrier raise challenges which have to be solved, but on the other Figure 6. Tank for a ship: Installation of an LNG tank of hand membrane tanks do offer a better volumetric the Wes Amelie during conversion works at the German efficiency than cylindrical pressure vessels. Applications of shipyard. this type of tank are therefore very rare and limited to ships that have to carry very large amounts of LNG as fuel. Space is of course an important issue. A ship’s hull been designed and delivered. For all projects TGE Marine should be used to the best possible extent for cargo and Gas Engineering has also delivered the LNG tanks (except not for fuel. The density of LNG is approximately half the for the conversion of the Rasheeda, which uses the LNG density of fuel oil at a comparable heating value. from the cargo tanks). Normally all tank connections and Nonetheless, this does not make the LNG tank design and the fuel gas equipment are enclosed in a ‘Tank Connection the proper arrangement onboard a ship easier. Space (TCS)’ as a secondary barrier. Furthermore, the most widely used IMO Type C tanks for

36 June 2018 Together we succeed

At Sulzer we develop, design and produce mass transfer equipment and offer solutions for all your separation issues. Our portfolio includes state-of-the-art Visit us at ACHEMA 2018 products for distillation, absorption, stripping, evaporation, phase separation, LQ)UDQNIXUW-XQHt liquid-liquid extraction, crystallization, and membrane separation. +DOO6WDQG'&KHPWHFK +DOO6WDQG$3XPSVDQG Sulzer offers an insight into the latest designs as well as developments in asset 5RWDWLQJ(TXLSPHQW6HUYLFHV management and pump optimization software and is a leader for rotating equipment services with a worldwide network of service centers, supported by design, manufacturing and engineering facilities that can offer turnkey solutions for the chemical manufacturing sector.

%HFDXVHOLIHLVƅXLGtZZZVXO]HUFRP

Sulzer Chemtech, Neuwiesenstrasse 15, 8401 Winterthur, Switzerland Phone +41 52 262 37 22, [email protected] classification drawings of shipside fuel gas tank supports and/or the detailed calculations needed to determine the right steel grades for the inside of the LNG fuel gas tank hold space. Implementation of LNG as fuel – the shipowner/operator Fuel gas systems will be typically operated by a ship crew without special knowledge in cryogenic gas systems. The need for a kind of ‘Gas Engineer’ like on gas tankers is in most cases not foreseen. This requires a high degree Figure 7. Cruise Vessel AIDAprima equipped with a TGE of automation which is also an important safety aspect. Marine Gas Engineering LNG fuel gas system with gas Therefore, LNG fuel gas system crew orientation training supply by truck during stay in port. and additional system-specific training is also part of the services provided by TGE Marine Gas Engineering. On previously executed projects it was also not uncommon LNG fuel gas applications are always a kind of cylinder. To for TGE Marine personnel to stay on board for on-side adapt to this, conical and bilobe tank shapes have been crew training and operational support during the ship’s provided to follow a ship’s shape as much as possible. first operation running on LNG. Along with fuel gas applications, vertical tank arrangements have been developed and successfully Implementation LNG as fuel – implemented by TGE Marine Gas Engineering. With this market segments solution, only minor modifications to existing ship designs LNG has firmly established itself as a transportation fuel have been necessary for the adaptation of a series of LNG not only for car and passenger ferries whereby it started. fuelled 1400 TEU container vessel newbuildings. All LNG The conversion and newbuildings of container vessels fuel gas tanks delivered by TGE Marine Gas Engineering are demonstrating LNG’s significant potential; that LNG are tailor made according to the circumstances on board as a fuel is the ideal solution for ships trading within the the individual ships. Emission Control Areas (ECA). However, it is not limited to medium size ships. Indeed, car carriers are also using Focus on conversions LNG as a leading environmentally friendly fuel on their Supported by public funding programs, conversion journeys within the North and Baltic Sea, and container projects are drawing the attention of ship vessels are doing the same within the coastal waters of owners. Completed LNG conversion projects with the US. TGE Marine Gas Engineering participation include: The LNG as a fuel for ships has gained a lot of public oil/chemical tanker Bergen Viking, and the 1000 TEU attention thanks to cruise vessel operators who are keen container vessel Wes Amelie of the German shipowner to advertise their environmentally friendly technology. Wessels. The main difference between a conversion and a More than a dozen of LNG fuelled cruise vessels are newbuild is typically the missing space for the LNG tank currently in the order books of worldwide shipyards. The and the fuel gas equipment. Accordingly, naval architects frontrunners in this sector are the AIDAprima and of TGE Marine Gas Engineering have been deeply involved AIDAperla built by Mitsubishi Heavy Industries (Japan). in the integration of the fuel gas system into the existing Both are equipped with a low pressure LNG fuel gas vessel design. Furthermore, shipowners need to minimise system supplied by TGE Marine Gas Engineering. As bridge the vessel’s out of service period for the conversion. This technologies to the new generation of cruise vessels, both requires the delivery of prefabricated skids to minimise ships are receiving LNG from trucks during their stay in installation time at the conversion yard. harbours. The LNG is burnt by generators for electric power production. These examples provide all parties a Implementation of LNG as fuel – good impression of the challenges of implementing this the shipbuilding yard technology on large passenger vessels in the cruising While a lot of shipyards are being confronted with business. the task of installing cryogenic gas systems on board merchant and passenger vessels, the requirements of Conclusion fuel gas system suppliers have changed as well. Skid and A large portion of global trade is transported by ships unit prefabrication are more and more frequently being with consequences for the environment. Therefore, requested in order to reduce the installation burden there is no doubt about the necessity for clean and being placed on the shipyard. New systems like vacuum sustainable marine propulsion systems. Designers, insulated double wall piping need to be provided and shipbuilders, shipowners, and charterers are all looking installed. Engineers at the shipyards, with no previous for the best solutions which fulfil existing and upcoming

experience of working on gas applications, are being regulations on NOx and SOx emissions. In commercial and asked to install the LNG fuel tanks. environmental terms, using a clean fuel (such as LNG), In light of this, TGE Marine Gas Engineering has not instead of employing complex exhaust cleaning systems,

only delivered LNG fuel gas equipment but their naval is the best way to significantly reduce SOx, NOx, and architects have provided engineering packages such as particle emissions.

38 June 2018 We are a full-service provider... We procure gas from the abundant, low-cost and liquid U.S. gas market and give our customers the option to load cargos at our facilities or deliver the cargos worldwide.

We are flexible... We offer destination free contracts that provide our customers further flexibility to manage their supplies.

We are reliable... We have exported more than 300 cumulative LNG cargos to 25 countries as of February 2018.

We are growing... We have established a premier LNG platform, with four liquefaction trains in operation, three under construction, and two more fully permitted.

www.cheniere.com NYSE AMERICAN: LNG

HOUSTON WASHINGTON D.C. SABINE PASS CORPUS CHRISTI LONDON SINGAPORE TOKYO BEIJING Supporting the transition

Lars Skytte Jørgensen, he marine industry is in transition. As emission T regulations tighten, a rapidly growing number of Alfa Laval, Denmark, ship owners are turning to LNG for its clean-burning advantages. Within the next 15 years, it is expected that details how the company thousands of vessels will be sailing with LNG as fuel. is supporting the marine A future determined by technology industry’s transition to To a large degree, the success of the LNG transition will depend on advanced technology. Since the properties of LNG with comprehensive gas are vastly different from those of traditional fuels, LNG requires a whole range of new equipment to ensure equipment solutions. secure and efficient operation. With pressures of at least

Figure 1. The Alfa Laval gas combustion unit.

40 41 300 bar and cryogenic temperatures of around -160ºC copper-brazed plate heat exchangers and unique needed to keep it in liquid form, LNG relieves emission products like the fusion-bonded and gasket-free headaches but poses significant technical challenges. Alfa Laval AlfaNovaM, produced in 100% stainless steel. Another is the specially engineered Alfa Laval DuroShell, Heat transfer in the LNG fuel line a plate-and-shell model that can perform low-pressure Alfa Laval has the widest portfolio of well-developed LNG vapourisation duties. technologies to support key heating and cooling At the far end of the performance scale is the applications in the LNG fuel line, such as efficient, Alfa Laval printed circuit heat exchanger (PCHE), a small-footprint, heat exchangers. These heat diffusion-bonded unit for temperatures from cryogenic up transfer solutions include versatile semi-welded and to 800ºC. The PCHE is tailor-made with fully customisable fluid channels and is up to 80% smaller and lighter than the shell-and-tubes normally used for these duties The PCHE is a critical part of complete LNG conditioning systems, where the LNG is pressurised at more than 300 bar and vapourised at cryogenic temperatures. One such system is the Alfa Laval FCM One Gas LNG, a booster for LNG engines with high-pressure ME-GI technology. In addition to its physical capabilities, the FCM One Gas LNG has sophisticated Alfa Laval automation that safeguards the fuel conditioning process. Supporting LNG in boilers and beyond Naturally, the switch to LNG as fuel has implications that run well beyond the engine. When LNG is the main or the only fuel choice, it affects other combustion-related systems on board. These include traditional boilers and burner systems, of course, but also waste heat recovery units for reclaiming heat energy from exhaust gas. Alfa Laval has been working with dual-fuel and even multi-fuel burners for many years now, and the company continues to refine its combustion technologies. LNG is in focus in a number of ongoing development projects that will lead to even more reliable and efficient gas combustion. It is not just the burner, however, but the whole boiler that must considered. Because the flame properties of Figure 2. The Alfa Laval test and training centre in Aalborg, LNG are different from those of HFO or MGO, a boiler Denmark. designed for fuel oil is not always ideal for burning gas. The same can be said for the exhaust gas boilers used in waste heat recovery. If a vessel switches from oil to LNG propulsion, a design review of the exhaust gas boilers is needed to establish a new heat balance for the whole boiler system with the revised exhaust gas temperatures and flow. Safety in LNG transport Alfa Laval’s combustion expertise is also beneficial for gas as cargo, which is growing hand-in-hand with LNG as fuel. Transporting volatile LNG involves a range of safety concerns. Here again, Alfa Laval’s Figure 3. The Alfa Laval test and training centre. many gas-adapted heat exchangers play a significant

42 June 2018 role. Yet pride of place goes to Alfa Laval inert gas systems, marketed under the Alfa Laval Smit name. For over 40 years, these systems have supplied the inert gas that enables emptying and inspection of the cargo tank by eliminating explosion risk. The systems are based on the unique Ultramizing® principle, which atomises the fuel oil for soot-free inert gas, even at partial loads. A more recent addition to Alfa Laval’s gas safety offering is the Alfa Laval Gas Combustion Unit (GCU), which was specifically designed for regulating cargo tank pressure on LNG carriers. The GCU provides a safe and convenient means for these vessels to do away with excess boil-off gas that cannot be used by the vessel propulsion system. Still more LNG solutions to come All of these solutions reflect Alfa Laval’s lasting commitment to meet the needs of the growing LNG market. As the industry continues its shift towards gas, the company’s LNG portfolio will grow even more diverse. One of the factors ensuring this is Alfa Laval’s investment in gas-related research and development. The Alfa Laval test and training centre in Aalborg, Denmark, was recently expanded from its original 250 m2 of testing space to 1350 m2, specifically for the purpose of working with fuel alternatives like LNG. Testing and innovation at the Alfa Laval test and training centre Simply put, the Alfa Laval test and training centre is the largest facility of its kind anywhere in the world. Most of the products installed there are integrated into major process lines, which allow not only their performance to be evaluated, but also their interaction. Combustion is in focus in the new gas expansion where burner systems, inert gas systems, and even the GCU are installed. The GCU itself provides some idea of scale when it comes to Alfa Laval’s investment. Measuring 23 m from bottom to top, it can burn up to 4.5 tph of LNG – roughly the equivalent of 60 MW. To enable indoor work with the unit, extensive preparations were necessary, including new insulation, roof materials, and ceiling windows. Large doors, connected with automatic systems that keep them open during operation, provide a necessary LNG safeguard when 458 m3/h of air are moved at full load. Within this space, Alfa Laval’s LNG offering is already being strengthened. The GCU, for example, is being marine fuel systems subjected to flame and heat flow testing under various conditions, intended to ensure that no unburned fuel is www.cryonorm.com able to leave the stack. Elsewhere in the gas expansion, new burner and boiler technologies are being developed, [email protected] both independently and in partnership with the Danish Technical University in Copenhagen. At the forefront of LNG progress With such development resources in place, combined with an already comprehensive portfolio of LNG technologies, Alfa Laval can claim a leading role in taking LNG forward. No other marine supplier puts breadth and depth on such equal footing. The favoured fuel

44 Figure 1. LNG bunkering in the port of Jacksonville.

Peter Keller, he IMO’s 2020 global 0.5% sulfur cap deadline is edging ever closer. With less Tthan two years to go until the regulation comes into force, shipowners are faced SEA\LNG, states with a complex investment decision matrix when considering how best to comply. While it could be argued that there remain more unanswered questions than definitive the case for LNG answers, what is undeniably clear is that their decision – albeit based on a limited number of options (LNG, scrubbers, or low sulfur fuels) – must remain viable into the as a marine fuel future. for the future. Pressure has been growing on the shipping sector to contribute to global efforts to reduce greenhouse gas (GHG) emissions following the 2015 COP21 (Paris) agreements. Consequently, the emissions performance of different marine propulsion systems is under greater scrutiny. The IMO is in the process of developing its initial strategy for reducing GHG emissions from international shipping, which is due to be put forward for adoption in April 2018.

45 It seems certain that sulfur limits for marine fuels will Like a game of chess, the decision by CMA CGM is so tighten and that there will also be more regulation in relation significant as it tips the balance for so many that may

to nitrogen oxides (NOx) and particulate matter (PM). In have – until now – been contemplating their next move; addition to tightening regulation in international waters, the waiting to see how the largest industry actors will influence expansion of existing Emission Control Areas (ECAs) which have 2020 game plans. more stringent emissions regulations is likely to ensue. The The industry is gradually moving from a state of denial to development of new ECAs is expected in areas such as the acceptance as the IMO, Flag, and Port States focus increasingly Mediterranean ECA proposed by the French government in on compliance. However, for LNG to play a significant role as a 2017, as well as the Chinese ECAs which are gradually being marine fuel, it requires collaboration across the entire marine rolled out in key port areas in the northeast of the country. LNG value chain. These environmental regulatory trends strongly favour the De-carbonisation of the shipping sector is likely to require a choice of LNG as a marine fuel. It far out-performs conventional portfolio of solutions, including different fuelling solutions, marine fuels on a local emissions basis, effectively insulating more efficient ships, and an increased role for renewable companies from the impact of future, more demanding energy such as batteries, solar, Flettner rotors, and kites.

regulation. LNG emits zero sulfur oxides (SOx) and virtually zero LNG’s greenhouse gas (GHG) performance represents a PM. Compared to existing heavy marine fuel oils, LNG can, major step forward when compared with traditional marine

depending on the technology used, emit 90% fewer NOx fuels, making it well placed to play a major contribution emissions. Moreover, it is the only currently available, scalable towards de-carbonisation. solution that addresses the core issue: The fuel itself. Utilising best practices and appropriate technologies to 2017 marked a step change for LNG as a marine fuel with a minimise methane leakage, realistic reductions of GHG by raft of new build investment announcements culminating in an 10 – 20% are achievable; with a potential for up to 25% or order of nine ultra-large container ships by French shipping more as technology develops (compared with conventional company CMA CGM. On the supply side, five LNG bunker vessels oil-based fuels). are already in service with a further 10 on order. The As a global commodity, LNG is already available in large momentum behind LNG as a viable, sustainable, marine fuel for volumes at approximately 150 locations worldwide through the long term is undeniable. existing liquefaction plants and regasification terminals. This bulk infrastructure continues to grow with at least 50 more plants currently under construction. Of the top 25 global ports ranked by volume of trade bulk, LNG is already available in, or in close proximity to, 24 of them. Additionally, LNG-fuelled propulsion is already proving to be a cost-effective solution to meeting emissions limits in certain US and European ECAs (Emission Control Areas). It also has the capability to be an economically viable solution for deep-sea shipping trades where vessels spend an estimated 50% or more of their time in ECAs. As of March 2018, there are 121 LNG-powered vessels in operation with a further 127 on order.¹ The passenger and cruise segment can be commended for leading the charge and stimulating the demand for LNG bunkers. The use of LNG as a marine fuel outside the LNG carrier business is a relatively new development, as are gas-only and Figure 2. Shore-to-ship LNG bunkering in Jacksonville. dual-fuelled engines. However, since its introduction as a marine fuel at the turn of the century, LNG-fuelled vessels and associated bunkering operations have had an exemplary safety record. Over the past 50 years, more than 77 000 commercial LNG cargoes have been safely delivered and global LNG shipments have covered more than 100 million miles – approximately 4000 times around the earth – without any major safety incidents in port or at sea. This is testament to the LNG industry’s rigorous design guidelines for both ships and shore facilities, as well as high standards of training and operational procedures. In the longer term, as pressure grows on the shipping sector to contribute even more to global GHG reductions, LNG-fuelled vessels and bunkering infrastructure provide an obvious potential de-carbonisation pathway through the substitution of conventional (fossil fuel) LNG with renewable Figure 3. Truck-to-ship LNG bunkering facilitated by Tote natural gas, including power-to-gas and bio-LNG, as technology and its supply chain partners JAX LNG, Clean Marine Energy developments allow. (CME), and other commercial partners and stakeholders. To drive the change needed across the entire marine transportation system, SEA\LNG unites key players from across

46 June 2018 WHEN PEACE OF MIND MATTERS

MAKING THE RIGHT DECISION DEPENDS ON GOOD ADVICE.

GTT provides a full range of services to support the operations of LNGC, FLNG, FSRU and other LNG-related structures in order to shorten dry-dock time, assist crews in operations and optimise vessel economics. From simple maintenance to significant improvements such as converting the ship’s Learn more on propulsion system or extending the vessel life, GTT is the key partner www.gtt.fr of decision makers. Customised services can be developed on request.

Excellent partnerships make successful projects. the marine value chain. SEA\LNG members have been at the In December 2015, Crowley made the decision to partner forefront of industry developments over the past year, which with Eagle LNG as the LNG supplier for its LNG-fuelled ConRo will continue throughout 2018 and the years ahead. A good vessel, El Coquí, which entered service in Q4 2017, and its sister example of this is the infrastructure work that SEA\LNG ship El Taino, which is scheduled for delivery in the first half of members have undertaken in Jacksonville, Florida in a very 2018. Eagle LNG is a wholly owned subsidiary of short space of time. Through close collaboration between the Ferus Natural Gas Fuels LP and is building LNG infrastructure port, regulatory authorities, local emergency services and across the US to supply clean-burning, competitively-priced fuel communities, Jacksonville has gone from a port with limited for the marine, remote power, rail, oil and gas, and trucking experience of LNG, no existing infrastructure, and a relatively industries. The supply chain consists of two main assets being small market in marine fuel bunkering, to one of the leading developed by Eagle LNG. The first, the Maxville natural gas LNG bunkering operations in the US and one of the first movers liquefaction plant in West Jacksonville with a capacity of globally. 200 000 gallons per day (87 000 gallons per day initially); the second, an LNG fuel depot located within Crowley’s Talleyrand Case study 1: Building an LNG Marine Terminal on the St. Johns River, with two LNG storage supply chain for the marine tanks. LNG will be transported to the Talleyrand fuel depot by sector from scratch trucks from the Maxville LNG facility. In 2013, SEA\LNG member Tote Maritime Puerto Rico took the The storage tanks, supplied by Chart Industries, are the decision to initiate a newbuild programme to replace existing largest located on a marine terminal (supporting vessel vessels in the Puerto Rico-Jacksonville trade with the world’s operations) anywhere in the world and represent a first for first LNG dual-fuelled container vessels. This was part of the maritime industry. They feature an inner shell to hold the company’s strategic approach for sustainable shipping and in product and an outer shell that is insulated and kept under anticipation of forthcoming emissions regulations, including vacuum, to keep the LNG cold. Each can hold 1000 m³ the introduction of the North American and US Caribbean (approximately 265 000 gallons) of LNG. The tanks are fitted ECAs in 2012 and 2014 respectively. In making this decision, with two internal LNG pumps, each of which can deliver a flow Tote recognised the need to establish a new supply chain for rate of 900 gallons per minute. Each tank holds sufficient LNG bunker fuel in Jacksonville and to work with a variety of product to fuel Crowley’s two LNG-powered vessels within an industry and regulatory stakeholders to ensure safe, compliant, eight-hour period. and effective operations. The design of the Talleyrand LNG fuel depot was developed The LNG supplier Tote chose to work with is JAX LNG, a jointly by Eagle and Crowley’s LNG engineers in consultation partnership between Pivotal LNG, a wholly owned subsidiary of with JAXPORT, the US Coast Guard, and the Jacksonville Fire and Southern Company Gas, and NorthStar Midstream LLC (a joint Rescue Department. The new bunkering terminal utilises venture of Oaktree Capital and Clean Marine Energy). state-of-the art technology to allow safe and efficient transfer JAX LNG is constructing North America’s first state-of-the operations in a working cargo terminal while minimising the art small-scale liquefaction facility and marine loading jetty at overall terminal footprint. It occupies about two acres, or one Dames Point, on the St. Johns River. The facility will include hectare in space. The LNG bunkering operation will be on-road and marine-loading capabilities and in addition to performed landside, from the storage tanks and directly onto servicing the marine sector will also provide LNG for rail, the vessel. drilling, mining, trucking, power generation, commercial, and The initial vison for Eagle’s supply chain is to support industrial markets. JAX LNG’s liquefaction facility is scheduled Crowley’s LNG-powered ships. However, the Maxville LNG facility to come online in early 2018. has production capacity beyond Crowley’s needs, which will be The 1440 gross tonnage Clean Jacksonville bunker barge, available for sale to both domestic clients in the Southeast and will be commissioned and used to deliver LNG from JAX LNG to island customers looking for containerised LNG supply. the Tote Marlin Class containerships weekly. In the interim, Based on its overwhelmingly positive experience in working JAX LNG is delivering LNG to the Tote vessels by truck, utilising with JAXPORT, local US Coast Guard (USCG) representatives, supply from its network of LNG plants in the USCG HQ staff, local first responders, and other stakeholders, Southeast United States. JAX LNG employees are conducting Eagle LNG continues to advocate for the importance of bunkering operations using an innovative custom-built partnerships in providing the infrastructure solutions that will skid-mounted cryogenic loading manifold, developed by be needed by the shipping industry post 2020. Applied Cryogenic Technologies (ACT). The skid system allows four chassis mounted ISO containers to simultaneously offload Conclusion LNG to the Marlin Class Ships within 6 – 8 hours. As regulation bites and its likely trajectory becomes clearer, shipping lines are increasingly seeing LNG as a long-term, Case study 2: Shore-to-ship LNG compliant solution for their operations. As the actions of bunkering in Jacksonville industry leaders such as CMA CGM and Tote illustrate, LNG is a Crowley Maritime is one of the main providers of supply vital element of the future fuel mix for shipping. chain solutions between the US Mainland and Puerto Rico. In And, as the world’s shipping markets continue to recover, November 2013, it signed a contract for the construction of the growth of LNG infrastructure on a global basis will two LNG-powered, combination container – Roll-On/Roll-Off underpin the growth of this environmentally, safe, and (ConRo) ships for its liner service between Jacksonville commercially important marine fuel. in Florida and San Juan, Puerto Rico, replacing its towed triple-deck barge fleet, which has been operating since the References early 1970s. 1. DNV GL LNGi, March 2018.

48 June 2018 Success validates

Marcel Ott, choice Winterthur Gas & Diesel, Switzerland, looks back on an interesting year for the company.

interthur Gas & Diesel (WinGD) is looking back on an excellent 2017. The Wlow-speed engine designer based in Winterthur, Switzerland increased its overall market share to 30%. Of the engines specified by shipyards and shipowners, 35 were dual-fuel engines, based on the X-DF generation engine platforms. In fact, WinGD’s RT-flex50DF, X52DF, X62DF, X72DF, and X92DF dual-fuel engines regularly took over 70% of the available orders, ending the year at around 75%. “These results show not only the excellent market reception of our X-DF dual-fuel technology, based on the lean burn Otto combustion process and using low-pressure gas admission. They also demonstrate that LNG is firmly establishing itself as an important future fuel for all types of ships,” notes Marcel Ott, Senior Project Manager X-DF Technology, in WinGD’s R&D function. “Forecasts that natural gas will take an increasing share of the global fuel market are coming true, and the benefits of its clean burning are being appreciated.” “The shipping industry clearly sees LNG as a viable solution to emissions legislation and it is on the way to becoming a

49 standard fuel. LPG also has the potential to be a future fuel for ecologically-hazardous volatile organic compounds (VOCs) were some vessels and is easier to handle, however, LNG typically costs recently demonstrated and have already been specified on two

less, and enables all emission limits to be met, including NOx shuttle tankers. without after-treatment. Above all, its availability is increasing rapidly due to the installation of an LNG supply infrastructure, Technology which is not happening with LPG on a similar scale.” WinGD’s X-DF technology options were to design low-speed Underlining this rapid growth in demand for gas-powered engines that, in their gas fuel mode, would run according to ships of all types, a total of 28 LNG carriers and 38 LNG-fuelled either the Otto or Diesel processes. In the Otto process, an air/gas vessels of other types are presently on order with WinGD X-DF mixture is ignited by injection of a small amount of liquid fuel engines. So far, engines have been ordered for chemical tankers, (into a pre-chamber), equating to less than 1% of the total heat asphalt carriers, Aframax crude oil tankers, container feeder vessels released during combustion. With the Diesel process, as selected and, significantly, X92DF engines for nine ‘ultra large’ 22 000 TEU by WinGD’s largest competitor for its dual-fuel engines, gaseous Post Panamax container ships, as well as LNG carriers. fuel is injected at high pressure with the liquid fuel. The Otto combustion process has distinct advantages, along Validation with the added benefit of WinGD being able to access the For the research and development team at WinGD, the success experience of their service partner and former owner, Wärtsilä, of X-DF dual-fuel technology validates their research. “When we with the medium-speed four-stroke dual-fuel engines, introduced decided to design dual-fuel engines, we had two basic choices in the early 1990s. WinGD can conclude based on the service in terms of combustion processes. After thorough evaluation, experience so far obtained, that low-pressure gas admission is the we chose the Otto process, and we now feel the decision is most beneficial concept on both low speed and medium-speed vindicated”, added Ott. engines. Since early April 2018, 18 engines with WinGD’s X-DF dual-fuel technology have been proving their economy, low emissions, Major benefits performance, operational safety, and reliability in service operation. The characteristics WinGD leveraged when adapting Wärtsilä’s To date, well over 60 000 operating hours have been logged under medium-speed four-stroke Otto dual-fuel technology included;

a full range of load and sea conditions. combustion stability high fuel efficiency/low CO2 emissions; the

In addition, the engines are rapidly being further developed. efficiency and low NOx emissions achievable with ‘lean burn’ Otto Versions with fuel-sharing are in service, and a version capable of combustion Technology. This included IMO Tier III compliance

burning mixtures of natural gas and otherwise without EGR or SCR; the low emissions of SOx and particulates possible with an inherently clean-burning, zero-sulfur fuel. With the Otto process, the engine’s systems and peripherals can be simpler, with lower capital, energy, and service costs. Simplicity and energy consumption Ott explains the simplicity and energy consumption issues: “With the WinGD X-DF technology, gas can be admitted into the cylinder at low pressure from valves located in the cylinder walls above the scavenging air inlet ports, where compression of the air is still relatively low. In the high-pressure system, gas is injected into the combustion space with the piston close to top-dead-centre Figure 1. In gas mode, WinGD’s X-DF and RT-flex50DF and compression at or close to maximum. The high-pressure engines with X-DF technology achieve IMO Tier III limits alternative therefore needs more powerful compressors to

on NOx without after-treatment. In their diesel mode ensure that the injected gas overcomes cylinder compression. they achieve compliance with IMO Tier II limits on NOx. Compressors capable of pressurising the gas to over 300 bar in Switching from gas to diesel operation and back is fully a safe system are needed, and they are more expensive, more automated. service-intensive and consume more parasitic energy. Operating experience All the engines with WinGD X-DF dual-fuel technology in commercial use are running well. “As with any new engine concept, teething-troubles did occur, but they were promptly rectified and have not recurred. In fact, the proportion of gas mode operation on LNG carriers is a consistent 98%, proving the reliability of the concept,” Ott commented. RT-flex50DF In early April 2018, the majority of commercial service experience with X-DF technology had been logged on RT-flex50DF engines aboard six ships. Around 42 000 hours had been Figure 2. SK Audace, 180 000 m3 LNG Carrier, SK Shipping Co., Ltd, South Korea. accumulated aboard the four 15 000 DWT product tankers operated in the North Sea and Baltic by product tanker specialist

50 June 2018 FOAMGLAS® INSULATION AN EXCELLENT CHOICE FOR LNG APPLICATIONS

Cellular glass is the only completely impermeable insulation material. For over 70 years, FOAMGLAS® cellular glass insulation has been proven to resist moisture and provide constant thermal performance.

FOAMGLAS® insulation: • will not burn • will not absorb hydrocarbons • is 100% moisture impermeable • has superior compressive strength • is dimensionally stable

FOAMGLAS® insulation does all this and more while providing constant thermal performance. Which is why FOAMGLAS® cellular glass insulation is an excellent choice for LNG applications.

FOAMGLAS® insulation services: Installation Education and Training, Energy and Thermal Imaging Surveys,S Energy Calculations, Insulation Guide SpecificationsS and Jobsite & Startup Support.

ContactC us to learn more about FOAMGLASF ® insulation and how we can help withw all your industrial applications. www.foamglas.comw I 800-545-5001

©2018 Owens Corning. All Rights Reserved. Terntank Rederi A/S. Of these about 10 000 hours were logged Stable running and reduced gas aboard the M/T Ternsund, the first ship to receive an engine with admission pressure X-DF technology. An early finding in sea-trials and commercial operation was “Commercial operating has validated our low-pressure gas the extremely stable running of WinGD’s X-DF engines in their admission concept in terms of combustion stability, engine loading gaseous fuel mode, which indicated the scope to reduce the in rough seas and low load operation on gas. The gas admission gas feed pressure to the gas valve unit (GVU). Accordingly, systems met our expectations in full, with no malfunctions or gas pressures below the 16 bar, cited in early specifications have now leakages occurring. Some optimisation of the Dynamic Combustion been implemented as a modification. This finding is especially Control (DCC) system was needed for high load operation in important, since it points the way to further significant reductions tropical conditions in certain engine tuning conditions.” Ott in total capital and operating expenditure for LNG carriers, by explained. allowing the required number of gas compression stages to be reduced. Minor adjustments In practice, it was established that 13 bar is sufficient for worst Before a design modification, piston running issues case combinations – i.e. minimum fuel lower heating value on attributable to leaking prechamber allowing water into maximum rated engine – and that for low rated X-DF engines a the cylinders, while excessively fast load ramps with maximum pressure of 10 to 11 bar is sufficient, however WinGD controllable pitch propellers (CPPs) were experienced, requiring does not recommend dimensioning gas admission pressure changes to the engine settings. Also, CPP-related, improvements according to worst case. A related development is a simplified gas were made to scavenge air pressures in combinator operation mode. feed regulation concept, in which the main functions of the GVU To ensure effective piston lubrication, cylinder liner surface are integrated into the engine design and its control systems. temperatures were reduced. During tests it was also established Two of the strategic developments are fuel-sharing and that the cylinder lubrication feed rate could be reduced to combustion of volatile organic compounds with the gaseous fuel. 0.65 g/kWh when running with BN25 lubricant. In fact, oil condition in the scrape down analysis revealed the potential for Fuel-sharing further reductions in feed rate, which is to be expected, given that During 2016, WinGD introduced a fuel sharing feature which, at no sulfur is present in the LNG fuel. loads above 50%, allows additional liquid fuel injection of up to 50% of total heat release. Within these parameters, the gas or X62DF and X72F liquid fuel can be chosen according to availability on the ship or To date, the first six twin-screw LNG carriers powered by WinGD’s their respective prices. Control of fuel sharing is fully automated. 62 cm bore X62DF and 72 cm bore X72DF dual-fuel engines Ott details: “The variable ratios of gas to HFO in their gas fuel have successfully completed their sea trails. The lessons from operating mode mean that our X-DF engines with fuel-sharing the RT-flex50DF applications, as well as general X-generation allow LNG carrier operators to balance fuelling between available modifications, have been applied. boil-off gas at any given time and their desired Of these, the SK Audace, chartered by Total Gas & Power engine output/vessel speed. Control parameters are set in a Chartering, has been in commercial service since August 2017. specially-adapted engine control system, based on a Both its engines had accumulated around 5000 running hours, of liquid/gas-ratio signal from the remote-control system. Very stable which almost 99% were on gas. Diesel propulsion is used only for engine control has been achieved over a wide engine operating engine starting, and manoeuvring in port. window and emission certification to IMO Tier II was obtained – Issues experienced on the early voyages of the SK Audace equivalent to emissions in 100% liquid fuel operation.” were limited to an unstable signal from the shaft power meter (issue rectified and improved solution under development); pilot Natural gas-VOC combustion fuel pressure sporadically exceeding the alarm level due to a The most recent WinGD development of its X-DF technology defective flow control valve on the pilot fuel pump (isolated has already been validated and demonstrated on the company’s incident); and clogging of pilot fuel filters due to contamination experimental engine in Trieste, Italy. of MGO distillate by HFO remnants (solved by improved fuel Operation of X-DF engines on a mix of natural gas and volatile handling). organic compounds (VOCs) is a way of eliminating an The operating conditions on the SK Audace’s maiden voyage environmental hazard by turning it into usable energy. were: engine power up to 70% when running on boil-off gas; “Large amounts of VOC are generated during the offshore vessel speeds from 16 – 18 knots; and on-engine gas pressures of loading of shuttle tankers but also during the voyages of crude oil 7 bar at 65% power – meaning that inlet pressure of below 9 bar carriers. As well as causing substantial loss of financial value, this at the gas valve unit are sufficient for operation at the vessel’s process releases hazardous substances into the environment,” Ott service speed. stated. Running engines on LNG and VOCs is equivalent to running Further development on natural gas with a reduced methane number, Ott explains. “We In line with WinGD’s continuous improvement process, the have not only confirmed the feasibility of burning VOCs in X-DF first results of X-DF technology developments are already engines but also that, aside from a few precautions according to being applied on commercially available engines or are ambient and boundary conditions, such as gas pipe temperatures, under advanced testing. Some are based on findings from the for example, no hardware modifications and no application- Factory Approval Tests, Type Approval Tests, sea trials, and early specific control functions are required on the engine. Further, there voyages of vessels with the first engines built. Others are strategic are no significant changes in performance and emissions developments to address new market opportunities/customer behaviour; i.e. the engines are fully IMO Tier III compliant burning demands and requests. the natural gas-VOC mix.”

52 June 2018 A VIABLEVIABLE AALTERNATIVELTERNATIVE

Jose Navarro, Lloyd’s Register, considers all aspects of LNG’s role and potential as an alternative fuel.

NG as fuel has emerged as a viable alternative to liquid co-operation, have provided rules and guidance. The Lheavy fuel oil (HFO), just as the shipping industry has International Maritime Organisation (IMO) swiftly responded begun looking for alternative fuels to help fulfil the to the development within the industry with the publication stricter MARPOL Annex VI regulations whilst maintaining of the International Gas Fuel (IGF) Code, providing the affordable operational costs. To support the introduction of statutory framework for ships to operate using LNG as fuel. LNG as fuel into the market from a technical and commercial The IGF Code is applicable to ships intending to use LNG as perspective, several organisations have been established to fuel with keel laying on, or after, 1 July 2017. The assist the industry in closing gaps and resolving challenges. International Organisation for Standardisation (ISO) and the Class societies working both individually and under the Society for Gas as a Marine Fuel (SGMF) have developed International Association of Classification Societies (IACS) standards to facilitate safe operation for LNG bunkering.

Figure 1. World’s first LNG-fuelled .

53 The SGMF, established initially under the guidance of the Fuel tanks containment system Society of International Gas Tanker and Terminal Operators Generally, the requirements for LNG fuel storage tanks are as (SIGTTO), is one of the most important organisations follows: supporting safety and technological standardisation in the use z Ability to handle partial cargo loading. of LNG as a fuel. It now has over 121 company members z Easy boil-of gas (BOG) management – to cope with covering knowledge and experience across the industry to unfixed bunkering schedule. help provide insightful guidance for the safe and responsible use of LNG as a marine fuel. z Low boil-off rate (BOR) – to avoid loss of quality and So, what are the key considerations associated with amount of cargo. implementing LNG as fuel? z Low cost and low weight and maximise cargo volume.

Fuel storage capacity In general, the existing cargo containment systems (CCS’) The required fuel storage capacity of LNG-fuelled ships is of used for the carriage of LNG as a cargo in the LNG Carrier course linked to intended trading routes, the ship’s installed (LNGC) market is also suitable for the storage of LNG as fuel. power, and the locations where bunkering services will be For the selection of the fuel tank, cargo capacity is not the available. This means that there are a number of uncertainties only factor; there are also the facilities for ship construction regarding the capacity of the LNG fuel tanks that need to be to consider. This includes IMO Type C (Cylindrical, or Bi-lobe fitted. for much larger capacity), IMO Type B (SPB), and Membrane Besides the many smaller LNG fuelled vessels in technology. Other emerging CCS’, such as 3-lobe, operation, there are a significant number of large Lattice Technology, or novel membrane systems, are also commercial ships either in service or contracted for expected to enter the market soon. construction that use, or will use, LNG as fuel for their main IMO Type C tank is presently in a more advantageous propulsion including: position for small capacity LNG fuel storage tanks. z Two handysize bulk carriers – To be delivered to ship In order to maximise the amount of energy to transfer, it owner ESL Shipping in 2018, each with a single cylindrical is better to keep the LNG fuel at its reference temperature at IMO Type C LNG bunker tank of 400 m3 capacity arranged atmospheric conditions. This can be achieved using IMO at main deck level (aft of the accommodation). LNG bunker Type C tanks and not just membrane technology. fuel is to be supplied by agreement between ESL Shipping For this reason, existing LNG-fuelled ships with IMO and Skangas from an LNG terminal in the Port of Tornio, Type C cargo tanks, with design pressure up to 4.5 bar, tend to Finland. operate with the cargo tanks at atmospheric pressures. z Four Aframax oil tankers – To be delivered to ship owner Fuel gas supply systems Sovcomflot in 2018 and 2019. The vessels are each to be Process equipment is required to be sized to supply the fitted with two cylindrical IMO Type C LNG bunker tanks; required fuel gas flow rate throughout the range of possible each of 850 m³ bunker capacity and located on the upper operating pressures. For installations with a single source deck (forward of the accommodation). of propulsion power, arrangements are to be such that, in z Two 3100 teu container ships – Delivered to ship owner case of a loss of gas supply, a secondary separate fuel supply Tote Maritime in October 2015 and February 2016, for must be available. Dual-fuelled machinery is usually capable trade from the US Gulf Coast to Puerto Rico in US SECA of operating at its maximum continuous rating on oil fuel zone waters. On each vessel, two cylindrical IMO Type C alone. LNG bunker tanks are arranged at main deck level, (aft The design of the fuel delivery system is dependent on of a ¾ aft accommodation block), with bunker fuel both the storage conditions of the LNG and the fuel gas capacity of approximately 1800 m3. These ships are to be demands of the consumers, typically main and auxiliary supplied with LNG bunker from a 2200 m3 LNG bunkering engines and boilers. At present, there are two main fuel supply barge (LBB), Clean Jackonsville, operated on charter to systems dictated by the demands of the consumers: TOTE Maritime. z Low pressure (LP) (less than 10bar(g)) – to date the z Two 4000 unit pure car and truck carriers (PCTCs) – dominant choice for passenger ships and small cargo Delivered in 2016 to ship owner UECC for North Sea vessels using either 4-stroke duel fuel or LNG only and Baltic Sea trade. A single cylindrical IMO Type C LNG direct drive main propulsion, diesel electrical propulsion, bunker tank of 800 m³ bunker capacity is arranged below or 4-stroke auxiliary engines for electrical power the main deck of each ship. generation. z Two 4500 unit PCTCs – To be delivered in 2019 to ship z Low and high pressure (above 10 bar(g)) – to date the owner SIEM Car Carriers. Cylindrical IMO Type C LNG dominant choice for larger cargo ships where 2-stroke bunker tank, or tanks, of 3000 m3 bunker capacity are to slow speed main engines are the chosen means of be arranged below the main decks. propulsion with the possibility of 4-stroke auxiliary engines for electrical power generation. Based on a cruising range of 24 000 NM and a nominal speed of 22 knots, Lloyd’s Register estimates that a The fuel gas is generated and heated to the ambient 20 000 teu LNG-fuelled ULCS, on an Asia-Europe round-trip temperature and pressurised up to the pressure required using rotation, would typically be at sea for 40 days and consume LNG pumps, evaporators, and a combination of heat around 500 m3 of LNG per day requiring LNG tankage of exchangers using glycol, fresh water close loop, and sea water 22 000 m3. open loops.

54 June 2018 &OHDQ0HHWV&OHYHU :LWKGXDOIXHOÁH[LELOLW\

&RPSOHWH3URSXOVLRQ3DFNDJHV৚ঢ়'XDO)XHO(QJLQHV /1*)XHO*DV6XSSO\6\VWHPV৚ঢ়+\EULG3RZHU6\VWHPV৚ঢ়(PLVVLRQ5HGXFWLRQ7HFKQRORJLHV৚ঢ়0$13ULPH6HUY

&OHDQFRVWHIÀFLHQWSURSXOVLRQLVQRORQJHUDGUHDP7KH0$1')HQJLQHRIIHUV\RXVDIHGXDOIXHO WHFKQRORJLHVLQWKHN:PHGLXPVSHHGUDQJH²SHUIHFWIRU/1*IXHOHGVKLSV2XUSDFNDJH VROXWLRQVLQFOXGHFXWWLQJHGJHJDVDQGOLTXLGIXHOLQMHFWLRQHIÀFLHQWWXUERFKDUJHUVDQGHOHFWURQLFPDQDJHPHQW V\VWHPV

bunker delivery vessel via vapour connections, or by using a The use of LNG as fuel can reduce SOx emissions by more than filling method designed to limit or reduce any boil-off 92%, and engines operating solely on gas may achieve a 100% pressure increase. The latter method involves a bottom fill reduction. Engines operating in Otto Cycle report a reduction

bunkering connection as well as top spraying to reduce tank on NOx emissions of over 80%, with a similar reduction for pressure. diesel engines operating on gas fitted with exhaust gas In the worst-case scenario, the excess gas will have to be recirculation technologies. Additionally, the reduction on burnt in the ships auxiliary boilers or dedicated gas Particle Matter (PM) is virtually 100% for all engines, including combustion units. Alternative designs have been implemented, dual-fuel engines. Finally, the use of LNG as fuel offers a

such as the use of small scale re-liquefaction plants or reduction of more than 25% with regards to CO2 emissions compression of the gas using HP compressors and storage as when compared with HFO engines. However, it is imperative (CNG) in pressure vessels. Obviously, that all parties involved in LNG bunkering and the operation of this solution comes with cost and operational implications. LNG-fuelled ships are committed to ensuring zero natural gas Secondly, during normal operation when the ship is in idle (methane) emissions during those operations, to ensure that conditions and the low power demand onboard the ship the positive effects are not overshadowed by possible leakages (traditionally called ‘hotel load’) is less than the BOG, the that would increase greenhouse gas emissions. vapour generated inside the fuel storage tanks will need to be safely managed (for a period no less than 15 days as required Recent industry developments by the IGF Code). In case of using pressurised fuel storage It has been reported that there are already 120 ships tanks, and subject to the amount of BOG generated, it will be operating using LNG as a fuel, with more than 130 ships possible to contain some of this BOG within the tank itself. on order. Recently, CMA CGM announced the construction of Atmospheric fuel tanks are also able to contain some of the several 22 000 teu container ships that intend to operate generated BOG within the tank itself but much less. In both using LNG as fuel. This decision could prompt further cases, any excess will not be allowed to be vented and it will considerations from other major container ship operators, as need to be dealt with by any of the aforementioned methods well as other ship type sectors. for managing excess gas. This follows the delivery of the world’s first LNG-fuelled Careful consideration should be taken to evaluate the bulk carrier, in February this year, that is fully approved for the most economical solution. use of LNG as fuel, Ilshin Green Iris. The ship is equipped with a Type C LNG fuel tank with a capacity of 500 m³, made of Engine solutions austenitic high manganese steel and located on the aft With regard to LNG propulsion systems, the main mooring deck. The material, newly developed by POSCO, has requirements are as follows: high manganese content (approximately 26%) and is specially z Ability to utilise LNG and also conventional fuel oils designed for cryogenic LNG and liquefied gas storage (to flexibly select suitable fuel in accordance with fuel applications. The properties and characteristics of the market). high-manganese steel, the required welding technology, and fuel tank design, have been proven suitable for cryogenic z Redundancy. storage with the support, certification, and approval of z Low fuel consumption. Lloyd’s Register. The ship is also provided with a z High performance. Man Diesel Turbo (MDT) ME-Gi propulsion engine able to operate with the high pressure natural gas produced by a z Reasonable initial cost. series of HP compressors. A low-pressure gas fuel supply For small scale LNG-fuelled ships, a single direct drive, system is also available onboard to provide fuel to the ship’s 4 stroke dual fuel diesel engine together with reduction gear auxiliary engines.

56 June 2018 oo much of a good thing Hao Jiang and Introduction The LNG industry continues to grow. Regulatory changes in China, Shawn Hoffart, for example, significantly increased the use of LNG and natural gas resources during the 2017 – 2018 winter months. As a result, Black & Veatch new gas supplies from unconventional gas sources are increasing. Many of these unconventional sources contain higher amounts of Corporation, nitrogen than more traditional gas streams. While nitrogen is an inert gas and constitutes the majority of the Earth’s atmosphere, explore and it can cause problems such as low fuel heating value and flame lift at the burner tip if present in high concentrations in natural evaluate a selection gas. LNG with a high nitrogen content can also have more of a propensity to ‘roll over’ while being stored, which produces high of options for the rates of evolved gas for a short period of time. To prevent such issues, most LNG products have a maximum nitrogen specification removal of excess of 1%. When unconventional feed gas is used for an LNG facility, it may be necessary to incorporate a nitrogen rejection unit (NRU) nitrogen. into the facility to meet this specification.

57 Coke-oven gas is the byproduct of a coking plant. In the past, provide a challenge for the LNG plant design because of the usual this stream might have been exhausted directly to the atmosphere. 1% maximum nitrogen LNG specification. Over the last decade, there has been rapid development of This article explores several options for nitrogen removal and projects to convert coke-oven gas to synthetic natural gas (SNG). compares advantages and disadvantages of each. All options Coke-oven gas is purified to remove impurities, including benzene, integrate an NRU with Black & Veatch’s PRICO® single mixed naphthalene, and sulfide, and is then converted to SNG with refrigerant (SMR) liquefaction technology to both remove nitrogen methanation technology. A typical methanation SNG product and produce LNG. stream is 73% methane, 18% hydrogen and 9% nitrogen. Often, this SNG is then liquefied to produce LNG for easy storage and PRICO® liquefaction technology transportation. The high hydrogen and high nitrogen feedstock can Developed in the early 1970s and enhanced over time, Black & Veatch’s PRICO® SMR process has played a major role in the LNG industry. The key to the success of this design approach is applying a simple, space and energy-efficient, liquefaction technology: The SMR process. Its minimal equipment requirement and flexibility to handle a broad range of feed gases make the process (Figure 1) the lowest-cost design option for small and mid scale liquefaction systems. The technology has a single compressor for refrigeration, and the main exchanger is a compact plate-fin assembly with a minimal number of connections. The process is designed so that the refrigeration inventory is maintained within the system during a shutdown, without venting or relieving pressure. The result is a low-cost, easy-to-operate, and safe liquefaction solution. The low equipment count and compact nature of the process make it an excellent choice for offshore applications. PRICO® technology is currently being utilised on multiple floating LNG (FLNG) Figure 1. Black & Veatch PRICO® SMR process. installations. Removal solutions Many options are available for removing nitrogen from the LNG product. Selection of the optimal technology is subject to the feed gas composition and other design factors specific to each installation. Hydrogen and nitrogen can be removed together or separately – since hydrogen could be easily separated from methane through a simple flash at cryogenic conditions or by utilising membrane separation. Nitrogen, however, is a bit more challenging to remove from the LNG. When the feed gas contains a high concentration of nitrogen, and/or there is no available fuel demand to act as a sink for a low British thermal unit (Btu) methane/nitrogen side stream, some or all of the nitrogen must be purified sufficiently to discharge to the atmosphere. Several Figure 2. Membrane separation and Nitrogen stripping with methods can be used for removing and purifying the nitrogen. NRU. The solutions typically fall into two categories: Stand-alone and integrated. The selection of the nitrogen removal method depends primarily on the specific project requirements, but must also consider overall project capital expenditure (CAPEX) and operational expenditure (OPEX). Figure 2 and Figure 3 show stand-alone nitrogen rejection schemes. Hydrogen and nitrogen are separated from the natural gas separately. The difference is that there is an upstream membrane separation in the first configuration. The membrane separation is employed to remove the bulk of hydrogen in the feed; the remaining hydrogen is removed in a flash drum. This configuration can reduce the size of the liquefaction unit and the refrigeration power demand. On Figure 3, all of the hydrogen is removed in the flash drum. The stripping column is used to remove nitrogen to meet the LNG specification, which is typically less than 1% of the product molar flow. The stand-alone NRU is utilised to separate the stripper overhead into a purified nitrogen stream, which can be vented to the atmosphere, and a Figure 3. Nitrogen stripping with NRU. methane-enriched stream containing a low amount of nitrogen that can be recycled back to the main exchanger for reliquefaction.

58 June 2018

Table 1. Process comparison product. The overhead product Nitrogen stripping Nitrogen Nitrogen Nitrogen specification minimises the amount of Unit with NRU and stripping distillation with distillation without methane loss, while the LNG product membrane with NRU nitrogen refrig. nitrogen refrig. must meet the required nitrogen LNG million tpy 0.25 0.25 0.25 0.25 production specification. The vapour from the reflux Nitrogen in drum is warmed against a process stream mole% 1.4 1.4 0.3 1.0 LNG before being vented to the atmosphere. Methane in t/hr 5.4 21.0 2.8 21.0 nitrogen Comparison Total power % 100 113 126 123 The various process schemes Equipment previously discussed were analysed Highest High High Lowest count for a 0.25 million tpy LNG plant. The Capital cost Higher High Highest Lowest feed gas in this case contained 73% methane, 18% hydrogen and 9% nitrogen. Black & Veatch PRICO® SMR technology was selected as the liquefaction process for the facility. The main refrigerant compressor was driven by an electric motor, which significantly reduced the ability to reject low heating value streams into the fuel gas system. A facility utilising gas turbine drivers has higher fuel gas usage, which provides flexibility in dealing with various streams separated from the LNG product. This was a modestly sized plant, and the client focus was to minimise equipment count and capital cost. For the nitrogen removal options, all configurations previously Figure 4. Nitrogen distillation with nitrogen refrigeration. discussed are viable solutions for meeting the product specifications. Each configuration has advantages and disadvantages that affect CAPEX, OPEX, efficiency, and methane loss in the separated nitrogen stream. As shown in Table 1, the process configuration on Figure 2 (membrane separation and nitrogen stripping with NRU) offers the best process efficiency but the highest equipment count, including both membrane separation and a stand-alone NRU. This arrangement leads to process complexity and a higher capital cost. The configuration on Figure 3 (nitrogen stripping with NRU) offers a lower equipment count than the one on Figure 2 but still employs a stand-alone NRU and sacrifices some process efficiency. The configuration on Figure 4 (nitrogen distillation with nitrogen refrigeration) offers the lowest methane loss but again employs an additional nitrogen refrigeration system. This leads to the highest capital cost and power consumption. The configuration on Figure 5 (nitrogen Figure 5. Nitrogen distillation without nitrogen distillation without nitrogen refrigeration) offers the lowest refrigeration. equipment count and capital cost, with an acceptable methane loss and better process efficiency. The capital cost benefit of an integrated nitrogen removal offers the best overall project value of The configuration on Figure 4 utilises nitrogen distillation all the options, and this configuration was the optimal solution for with additional nitrogen refrigeration to condense the tower this particular project. A summary of the key results are shown in overhead. Nitrogen is removed along with the hydrogen. LNG is Table 1. withdrawn from the main cryogenic exchanger at a midpoint temperature before final subcooling. LNG is distilled to meet the Conclusion required product specification. The resulting hydrogen and Nitrogen removal optimisation should be evaluated early in nitrogen-rich vapour is purified in the distillation column and sent project development, especially when the feed gas is from to the atmosphere or another appropriate destination. The reboiler alternative sources containing high concentrations of nitrogen. energy is integrated into the facility design by pinch analysis. The The analysis will vary, depending on the specific priorities and overhead condenser for the column is cooled with an external requirements for each project. It is important to offer nitrogen nitrogen refrigeration system to provide reflux to the column and removal options that fit the requirement of the project, while also control the loss of methane in the overhead nitrogen/hydrogen considering the overall CAPEX and OPEX consequences of each

(N2/H2) stream. option. Figure 5 shows a nitrogen distillation configuration that does For this specific LNG production facility, the option of nitrogen not use external refrigeration. The condenser for the distillation distillation without external nitrogen refrigeration, as shown in column is integrated within the main cryogenic exchanger and Figure 5, was selected as the optimal nitrogen removal process. cooled by the PRICO® refrigerant. The distillation column This particular project was designed by Black & Veatch and has separates the combined nitrogen/hydrogen stream from the LNG been successfully operating in China for several years.

60 June 2018 SSamplingSaammpplliinngg wwwithiitthh ssimplicitysiimmpplliicciittyy

Jake Tivey, Orbital Gas Systems, USA, highlights the pitfalls of inaccurate representation in trace measurement and emphasises the importance of gathering fast, representative results in LNG sample systems.

oday, rapid and representative trace measurement with primary filter. This minimises the need for further filtration, avoids Tcontinuous, online gas sampling is standard practice in LNG contamination of samples and allows a small bore to optimise production plants in order to ensure that operations can sample transit time. The VE Conditioning Unit preheats the gas to run safely, sustainably, and profitably. However, successful sampling eliminate retrograde condensation due to the Joule Thomson requires a carefully planned approach to front end engineering effect and the VE Sample System is a simple, optimised system to and design. Orbital specialises in developing innovative, integrated deliver representative sample to any analyser with no dead solutions and products for the LNG industry, and takes the volume, threaded connections or components in the sample approach of carrying out a comprehensive study and assessment pathway. of the sampling process. The aim is to establish the optimal In practice, the sample is taken from the central third of the sampling points and configuration required to deliver the quickest pipeline in practically any application. All components and other and most accurate results. flow disturbing elements removed from sample pathway and the internal volume is reduced with all surfaces electropolished as Improving simplicity and standard (and additional SilcoNert coating when beneficial). For efficiency in sampling trace measurement applications, each and every element of a Orbital developed VE Technology as an innovative sampling sampling system needs to be carefully tailored to the specific LNG system for a range of applications (natural gas, oil, and chemical process area. This means the optimal sampling points must be sampling) with particular relevance for the LNG industry. Simplicity identified, and the best design and configuration of the sampling is at the heart of the engineering, allowing rapid and simple components themselves must be carefully planned. customisation. The sampling probe and sample system has been designed so that a truly representative measurement of CV and Removing every trace

trace elements such as moisture, H2S and mercury, can be acquired As is the case with heavy industrial machinery, LNG production more simply, more quickly, and more efficiently than has ever been equipment is commonly subject to the damaging effects of possible before. corrosion. Water molecules can oxidise solid equipment surfaces One aspect of VE Technology is the VE Fixed or Retractable due to deposits of trace moisture on metal components. This Sampling Probe. Patented helical strakes eliminate vortex induced water vapor is also capable of mixing with liquid hydrocarbons vibration and the need for wake calculations, while an present in the gas stream, which can then condense out forming aerodynamic probe tip actively rejects particulate acting as a emulsions during transportation. Under low pressure conditions,

61 these emulsions can freeze and expand, blocking and restricting Sources of inaccuracies flow in pipelines. As a result of the operational problems posed by For LNG trace measurement, sampling systems should make the presence of water vapour, process requirements dictate that sure gas reaches the analyser quickly and directly, otherwise typically no more than 0.4 ppm of water can be present within the analyser will deliver an inaccurate representation of the the natural gas in LNG processing applications. Effective trace stream’s composition. However, moisture present in natural gas measurement means that moisture present in the gas stream has the tendency to adsorb to the inner surfaces of stainless steel can be identified early and accurately, with appropriate process and other metal components as it is transported to the point control implemented to remove it, and prevent accumulations and of saturation, causing a period of delay until the analyser can potential impact to operations. yield the correct concentration of moisture (by which time the process conditions have already changed). These delays can be compounded by the presence of dead spaces in the sample line and the sampling components themselves (e.g. probes, valves, regulators, etc.). Gas collects and pools in gaps and crevices in a sample system, enabling water to adsorb to exposed surfaces. Further, the dead space, changes in cross section and other flow disturbances can create recirculation and changes in pressure which encourage the moisture (or other trace components) to be trapped or deposited on the surface of the system. Poor design in gas sampling processes can dramatically exacerbate the number of dead spaces and the delays they cause. Complex sample equipment provides many areas in which gas can collect. This means that in some complex systems, the concentration of gas may never be accurately determined. To further minimise delays due to adsorption, one technique used by Orbital is to apply surface treatments, namely inert silica coatings and electropolish finishes, to all of its sampling equipment. Electropolishing is a surface smoothing treatment, which helps to remove surface particulates, resulting in a smaller surface area and total adsorption capacity. A SilcoNert coating, which does not adsorb water, is also applied to the surfaces, which acts to physically block active adsorption sites on the surface with an inert substitute. Detailed experimentation performed by Orbital Gas Systems has proven that typical membrane sample probes, once wet up to approximately 0.5 ppm will take in excess of 24 hours to dry back down to less than 0.2 ppm preventing the user from ever seeing a true representation of the process. Additionally, simple 0.25 in. 50ft long electropolished sample tubing exposed to Figure 1. VE probe tip. changes in temperature of 10°F can result in changes in excess of 1.0 ppm. A typical approach for this type of application is to use self-regulating trace heated sample bundle between the probe and the conditioning system, but considering this type of solution is dependent on the ambient conditions (temperature, wind), you can expect to see in the region of 50°F change during the day for some applications, ensuring that the sample will never be close to representative. These two examples highlight that even when using solutions that are often considered best practice, you will never be able to accurately control your process, resulting in millions of dollars from lost revenue or increased maintenance. Conclusion ISO 10715 dictates that the main objective of sampling should be to take measurements that are representative of the gas at a given time. If a sample system is unable to quickly respond to changes, then this objective is no longer fulfilled. To this end, a sample system that can provide a direct, uninterrupted pathway to the analyser, that is suitably coated and conditioned to minimise the total adsorption sites and then facilitate adsorption/desorption as quickly as possible, is the ideal option for maintaining the integrity of the sample. Essentially, Orbital believes that an innovative Figure 2. VE Technology Analyser Interface Module. yet simple system design is not only the key but is essential to obtaining representative results.

62 June 2018 Pumps of the future

Nicolas Fariney, he use of natural gas is becoming more and Tmore prominent in everyday life. The current Fives Cryomec, culture of environmentally friendly trends has led to various applications of natural gas and it is Switzerland, discusses now viewed as an essential resource to be utilised in the battle to reduce pollution and protect the planet. the current state of the Natural gas has applications in various fields such as power stations, power plants, urban cryogenic pump sector regasification, and as a transportation fuel – e.g. for and how manufacturers buses, cars, trains, etc. This leads to huge quantities of natural gas being transferred from producers to are making the ‘pumps of the end-users. (To read more on this topic see articles published in LNG Industry’s October 2017 the future’ a reality today. issue).

63 In light of this, optimising the transportation of natural This seal type is commonly used for the transfer of all kinds

gas is becoming an important challenge that needs of cryogenic liquids – nitrogen, oxygen, argon, CO2, etc. – in addressing. Most of the time, natural gas is transferred in its addition to LNG. These pumps are either installed at the liquid form, as LNG, using trailers and ISO containers. This is back of the trailers or directly onto the ground (stationary because natural gas is far easier to transfer and to store in installation). its liquid state than in its gaseous form; LNG takes up far The main challenges posed by the use of mechanical less space than gas and is easier to handle. However, once seals are the risk of leakages, and their relatively short life the gas has been transferred or stored as LNG, it can be time (between 800 and 1200 hours depending on the returned to its gaseous form via the regasification process. manufacturer). Obviously, the leakage risk of a seal for a LIN This is important for end-users as many work with natural trailer (transports Nitrogen) is not an important issue, but for gas but not with LNG. a LNG trailer it can become a serious safety problem. As a The main aim of a transfer process is to ensure a safe result, the regulations and standard practices regarding such and reliable transfer of LNG from tank, to trailer, to ISO matters are evolving quickly to provide maximum safety and container. Natural gas can become unstable if it is not to minimise all risks. The aim of cryogenic pump handled properly and avoiding high-risk situations is a top manufacturers is to design the ‘trailers of the future’ today, in priority. order to meet the new regulations. LNG trailers A new challenge The temperature of a standard shipment of LNG is Market research undertaken by Fives shows that there will approximately -160ºC. This is the reason why it can only be be several new requirements that will become mandatory in transferred using cryogenic centrifugal pumps. These pumps the near future: are specially designed to withstand very low temperatures of z 100% pump safety – 0% risk of leakage. down to -200ºC. z Compact pumps – increased tank volume on trailers Historically, the pumps intended for cryogenic liquid (high profitability on each delivery/very low space transfer have always been designed with a mechanical seal. available at the back of a trailer and on containers). z Revamping – new pumps should be able to replace a mechanical seal pump and avoid creating the need for major modifications to existing trailers in the process.

The most suitable solutions to these requirements seem to be capsulated pumps as they meet all the stated requirements. It is true that this pump range already exists, but the cryogenic pumps currently available on the market do not possess all the required features. Capsulated pumps Some examples of capsulated pumps include: The sealess pump and submerged pump ranges. The sealless pump’s range includes the VS7 from Cryostar, the Cryomec VSMP from Fives, and the AC-32 from Figure 1. Sectional drawing of a centrifugal cryogenic pump ACD Cryo. with mechanical seal. The submerged pump range includes the Substran from Cryostar, and the TC-34 from ACD for example. The main feature of those pumps is that they are all vertical. This means that they cannot be installed in the place of a mechanical seal pump. It is complicated and more expensive for the user if their chosen solution is the submerged pump as these pumps need to be installed directly into a tank or inside a pit. This automatically makes extensive modifications of existing trailers a fundamental necessity, rather than a choice. The way to the future Fives has designed a new alternative pump by combining both sealless and submerged technologies. This new product is called the Cryomec HSMP which stands for Horizontal Sealless Motor Pump. The general arrangement of the new Cryomec HSMP is quite similar to that of the mechanical seal pump in terms of Figure 2. Mechanical seal pump typical installation at the back of a trailer (assembly phase). size. However, it can be shown to be even more compact than a mechanical seal pump when equivalent units (same

64 June 2018 THE LEADING PRE-COMMISSIONING AND SHUTDOWN SERVICES PROVIDER TO THE GLOBAL LNG INDUSTRY

EnerMech is the market leader in the pre-commissioning of LNG transportation, SURFHVVJDVL¿FDWLRQDQGUHJDVL¿FDWLRQV\VWHPVZLWKPRUHWKDQSHRSOH LQORFDWLRQVDFURVVFRXQWULHV2XUWHDPRIH[SHUWVKDYHGHYHORSHGSURFHGXUHV DQGHTXLSPHQWSDFNDJHVVSHFL¿FDOO\IRUWKH/1*PDUNHWSURYLGLQJVDIH VPDUWVROXWLRQVWRWKHJOREDO/1*LQGXVWU\

'HOLYHULQJDZLGHUDQJHRIPHFKDQLFDOHOHFWULFDODQGLQVWUXPHQWDWLRQVHUYLFHV through pre-commissioning and start-up, to operations and maintenance.

Our project experience includes: APLNG Curtis Island • GLNG Curtis Island • QCLNG Curtis Island • Wheatstone • Gorgon ,FKWK\V • Prelude • Sabine Pass • Corpus Christi • Elba Island • Cameron LNG • Freeport LNG

M M I S S - C 2 I 2 N R E I N P G • •

T C R 2 2 M P M P I U S S S

I

N 2

2 LNG N

I

INTEGRATED I T

SERVICES N

C

G

U

• R

T

2

S

P

N

E

2 R

C

A

T

•

I

2

E

N C

S N

A

A

N

N

E

D T

N M I A

Houston • Tel +1 281 477 7828 • [email protected] • enermech.com

$)5,&$‡$0(5,&$6‡$6,$‡$8675$/,$‡(8523(‡0,''/(($67 &$63,$1 power and impeller size) of the two designs are compared 5 bar, the gas inside the motor will also be of 5 bar (an example is shown in Figure 4). (MAWP at suction is 16 bar). The main issue for customers is being able to replace z The front bearing is lubricated with the pumped fluid the pump without modifying their current trailer completely, and the back bearing is greased to last its life time. or buying a new trailer specially designed for the new pump. As this new pump is the same size, it enables a trailer to be z The motor winding is self-cooled thanks to the revamped with only minor modifications. temperature of the liquid being pumped. Submerged pumps might appear to be a suitable z The wiring connections are simplified as the junction solution, however their installation is problematic and box is directly sealed on the pump motor casing. It requires a much more complicated revamping process. already includes all the required connections for power, Further to this, a sealless pumps is easier to operate, is low PTC/PTO, and PT100s for temperature control. maintenance, and provides multiple technical advantages: The principle of the pump is to eliminate the Exproof z The entire pump (motor casing, pump casing, impeller, area from the inside. This is achieved by the pump being inducer, etc) is primarily made of aluminium which completely purged prior to starting, leaving no oxygen at all guarantees low weight. Aluminium also means that the inside. This total absence of oxygen guarantees an Exproof pump is certified for installation into the Exproof zone. As zone inside the pump. the pump tightness is IP67 (and the junction box is IP65), 0% leakage of the pumped fluid can be guaranteed. Low TCO z There is exactly the same pressure in the motor casing There is no seal and no seal gas (or continuous purge gas) as in the suction line; e.g. if the suction pressure reaches in this pump. The number of parts that will suffer wear is therefore very small. This pump is optimised for long time overhaul intervals with low spare parts cost. Its OPEX (operating cost) is reduced to the minimum. Alternative applications with high potential The sealless pump does not only have a large potential for the LNG market but it also offers new perspectives for high purity liquids. High purity fluids are used in the food, biological, health, and electronics industries (e.g. Figure 3. Working principal of the Cryomec HSMP (green is liquid phase and CO², Pure LIN, Pure LAR). High purity yellow is gas phase). gas prices are rapidly increasing and customers are looking for suppliers who can provide the highest quality gases. These customers are therefore very interested in pumps which can prevent any contamination and any leakage of the pumped liquids. Thanks to its new technology, the sealless pump offers just this, as well as high profitability and reliability. Conclusion The worldwide regulations concerning safety and environment protection are evolving and it is already known that the requirements will become stricter in the near future. The sealless pump seems to be the best solution to balance the needs of customers and the constraints of new, upcoming regulations. The yearly increasing demand for LNG leads pump manufacturers to anticipate the need for Figure 4. General arrangement comparison between a mechanical seal pump vs the Cryomec HSMP (both with 200 mm impeller size and 18.5 kW motor power). ‘pumps of the future’ in every field, and not just for trailers.

66 June 2018 he most important assets Tthat any business has, are its employees. From the technician in the field and the operator in the control room, to the accountant approving expenditure, and the CEO Digital overseeing everything, it is people that make a business what it is. People keep the equipment running reliably. People make the business productive and profitable. People ensure that the transformation business has a clean safety record, and take care of the environment around the plant for themselves and for the local community. When discussing digital transformation, you are talking about in LNG plants changing the way plant data is collected, analysed, and distributed to the people the business relies upon. This process Craig Abbott, Emerson Automation takes a myriad of data points, turns them into actionable items, and Solutions, Australia, outlines how distributes them to empower people to the process of digital transformation make better decisions; ensuring that the plant is a top quartile performer, and is changes the way plant data is more productive, more efficient, and safer than its peers. collected, analysed, and distributed.

67 Digital transformation It is now, when the rest of the world is raving about IOT, that The ongoing change towards more digitised control systems industrial process plants can fully realise their own digital can be traced back to events around 20 years ago, when transformation. communication protocols were added to instrument loops, There are key identifiers of this transformative process that themselves were part of the pneumatic to analogue that can be seen emerging in plants around the world: transformation 20 years earlier still. These first steps z Wireless instrumentation that can be installed anywhere included the ability for technicians to perform diagnostics to measure anything and produce rich sources of data for on an instrument whilst still sitting at the DCS workstation. analysis. The diagnostics enabled operators to detect potential z Automated rather than manual data collection that measurement faults long before an annual calibration or PM allows the workforce to concentrate on productive work order discovered the problem. tasks such as analytics, problem solving, and proactive Whilst this was the start of a digital transformation, maintenance. cabling, data processing power, and communications limited the functionality. Fast forward to today and the industry now z Servers, separate to the DCS, that run algorithms to has cable free, wireless instrumentation, powerful servers to monitor the health and efficiency of instruments, assets run algorithms on thousands of assets, and tablet PC’s that and entire process units to predict failures and optimise are more functional than the DCS systems from 20 years ago. operations. z Data clouds with secure connections that allow for sharing information with vendors and subject matter experts, enabling the brightest minds available to review operations and offer guidance. z Wireless communications and hand-held tablets or smart phones that deliver actionable information to operators, technicians, and plant engineers, wherever they happen to be.

Digital transformation of control valves A control valve is a key component of any process control system. When control valves fail, quality is compromised, production stops, or worse, plants continue to run, dangerously out of control. Regular inspections and maintenance of control valves ensure efficient and safe plant operations. This Figure 1. Mobile Apps provide operators with a view of DCS data anywhere would typically require going to a valve, in the plant. performing tests locally, and if it was found to be outside acceptable parameters, scheduling maintenance. If you were lucky, someone may have spent the funds to keep a collection of parts in the store room, however, it would usually require delays in waiting for spares, a second visit, and another shutdown of the process line. A plant that has gone through a digital transformation approaches control valves very differently. Rather than regular field trips by a valve expert, a digital valve controller does performance testing constantly, with regular samples of results uploaded to a central repository. Within this data store, performance trends can be analysed, looking for valves that are functionally degrading faster than normal wear and tear as well as for valves that continue to perform above expectations. This allows schedulers to identify what work is Figure 2. Fast, easy, and cable free installation of a Rosemount 708 to monitor required, what work is not required, and to a steam trap. plan appropriate shutdowns well ahead of time. Knowing what repairs are required, and

68 June 2018 when, allows the purchasing team to ensure that spare parts picture of how the process control system is running the are ready and available, precisely when they are needed. plant. Is the plant being run in the most efficient manner? Are The valve expert that used to have to visit each valve, in sudden movements in control valves the root cause of, or turn, to collect performance data needs only to sit at a caused by, process upsets elsewhere in the plant? Answering computer and log into the data repository. With the right these questions can provide process engineers with the access and security protocols in place, the expert need not information they need for optimisation projects to better ever set foot on site. Valves only need to be visited once, by manage both production and wear and tear. a maintenance technician, when repairs are required. The reduction in site visits reduces the risks of having personnel Digital transformation of in potentially hazardous areas, reduces travel, and reduces pressure relief valves spares holdings. Another critical valve type in a process plant is the pressure In Perth, Western Australia, this exact procedure is relief valve. The uncontrolled rupture of a vessel is one of being followed today. One of the LNG plants operating in the most dangerous events that can happen in a plant and a the far north-west has Fisher Valve controllers reporting pressure relief valve is one of the tools used to prevent this. valve diagnostics to a data centre, thousands of kilometres Hopefully, these valves will never have to operate, so unlike to the south. Each day, a valve expert arrives at the office control valves that operate almost continuously, these valves in Perth, reviews any alerts from the previous day, reviews may sit quietly for years before having to suddenly open, and the current performance statistics of the most critical then seal closed. valves and then checks through the list of all valves where When relief valves open, there are three main areas of there is a significant change in performance or where concern: performance is reaching maintenance thresholds. This z What is the financial impact of the loss of product and expert can analyse the performance of far more valves environmental impact of the release? remotely than could be done with a site visit for manual z Did the valve successfully reseal after the event or is it data collection. Not only is the process far safer, it is far continuing to leak? more efficient and identifies problematic installations far sooner. z Why did the process lose control and hit a failsafe and With all this data in place, there also exists the can this be prevented? opportunity to perform a higher-level analysis of the process control system. If you can determine how often control valves The first of these three concerns is the impact on the are commanded to move, and how far, you can start to get a business bottom line, and lessening this impact requires securely shared with a valve vendor, then there is the opportunity for an agreement between a plant operator and a valve vendor to provide relief valves as a service. Rather than spend capital on a stock of spares, the vendor may hold spares on the operator’s behalf and then, for a nominal fee, continually monitor, refurbish, and rotate the stock of relief valves. Secure information sharing Digital transformation often includes people sharing data. This may be the sharing of data between different people within an organisation, between people at different sites owned by the same organisation or between plant personnel and subject matter experts outside the organisation. Most types of data exchange are bidirectional, however, when security is paramount, a unidirectional flow of information can be more useful. In the case of data being shared with a subject matter expert outside the organisation, the more data you share with the expert, the more accurate their analysis will be. Ideally, this will be an almost continuous flow of raw data, direct from instrumentation within the plant. This rich data can be analysed and advice provided or actions taken, depending on the information uncovered. The return path need not be the same data channel, as the response may be advice in the form Figure 3. The Fisher Digital Valve Controller performs diagnostics continuously for analysis by experts and expert of a report or a scheduled site visit. Is it possible to have a algorithms. secure, unidirectional, data path from the plant to the expert without creating a potential security hole? Some plants will try to share data via traditional resolution of the two other points, both of which require channels through several layers of an organisation. This information that many plants will not have access to. requires that the data be collected and passed through at Some plants place material, like a sock, over valves. If least the DCS, the office LAN, the Corporate LAN, and then a the sock is blown off then they know which valve opened cloud service, often being repackaged and translated and must be checked for leaks, and which part of the plant between dissimilar databases along the way. Not only is it needs an operational review. It does not, however, tell you expensive to add new data points, the process to change the when the product was released. Other plant designs include flow of data can be slow, and alter the data format into a common header, leading to a flare to safely destroy something only partially useful. released products. The timing of the flare can tell you when Data Diodes resolve the secure sharing issues. Data a process upset occurred, however, it does not identify the Diodes allow the flow of information in one direction, source of the release. without having any physical connection in the reverse At another Western Australian LNG plant, Rosemount 708 direction. In this sense, they are perfectly secure. Any data WirelessHART acoustic sensors are being attached to safety that needs to be shared with a subject matter expert, either relief valves to perform continuous monitoring at the point within or outside the plant can be transported through a of release. This is a meshed network of digital ears, located data diode, without creating any pathway back into the plant. around the plant, providing a continuous measurement of local noise and temperature. If there is a release, the sensors Conclusion will detect the corresponding spike in noise and identify To achieve top quartile performance, membership in the which valve opened and when. Engineers can use this top 25%, plants need productive people with access to information to identify process upsets and determine what actionable information. Empowering employees to be at process control strategy can be put in place to prevent future the top of their game is the essence of undergoing a digital releases. transformation. Manual tasks can be automated, allowing In addition to identifying the primary event, the sensor people to perform more productive activities. Productive can be checked again, about 15 minutes later. If there is a activities are scheduled from action items supplied by rise in noise and a change in temperature since the release experts that have reviewed information that allows them to event, then this is a clear indicator that the relief valve has make more accurate decisions. The information is supplied not properly reset and is continuing to leak. The leak from algorithms, working on large sources of data provided represents wasted product, an unwanted environmental by the automated collection. impact, and potential a health and safety issue. The faster a Digital transformation is about connecting people and leak can be identified, the faster it can be rectified. information. Australian LNG plant operators are undergoing Digital transformation not only changes how plants are a digital transformation across all business processes, optimised and monitored, but also creates new business connecting employees at every level along with trusted opportunities as well. If the information on valves can be experts to become highly competitive, global leaders.

70 June 2018 Rethinking LNG infrastructure

Soili Städter, Valmet, Finland, outlines the company’s strategy to create growth for services in the LNG industry.

NG is a growing market in Europe. The European develop software solutions for new markets – the needs of which LCommission has developed an LNG and gas storage might not yet even be recognised. strategy for the European Union. This is expected to liven In principle, all Valmet’s new products and services make a up investments. Valmet is a newcomer to this market but, in a positive contribution to the environment. The market’s demand for short time, has already gained a reputation for being an expert at more environmentally efficient technologies is one of Valmet’s combining process automation and logistics in a revolutionary way. main drivers. “Our strategic focus is to build new solutions for the growing Sustainability drives Valmet market. Valmet DNA Integrated Operations is the platform to technology development collect real-time data from several databases and use that data for Sustainability and innovation lead the automation R&D process energy and logistics planning,” explains Jani Hautaluoma, Director, at Valmet to create growth for future services that support Process Automation, Valmet. customers’ sound business development. By first examining and understanding customer needs, Valmet can improve product cost Easier transport competitiveness, leading in turn to increased gross profit. Process The entire LNG market is about to develop and grow, and Valmet automation expertise is the cornerstone of Valmet’s ability to are well placed to assist. Investors are interested but are still

71 uncertain about how the whole infrastructure will be built and Valmet’s DNA Integrated Operations was created to enhance what services will be available. data transfer and information sharing, based on the process data. During the LNG process, several separate actions are For instance, if a customer is working with the entire infrastructure, performed, with individual parties, such as LNG production plants, information from the whole transfer process can be received. terminals, liquefaction plants, and logistics operators, as part of the entire infrastructure. The need for services, such as filling stations Enhanced terminal operations and other kinds of logistics solutions, is increasing. Each party can get information separately about a specific function. For instance, the owner of a terminal can focus on his Valmet DNA Integrated core business while scheduling transactions at the right time. A Operations bundles all the data distribution plan, including transfer routes, trucks, and destinations, Valmet’s DNA Integrated Operations was developed based on makes operations easy to follow. The terminal manager is in customer needs. It helps users manage data, optimise sourcing and control of the information flow all the time – and is able to plan logistics efficiently, thereby saving time and costs. The small see the progress of each transport task using only a single tool, scale LNG supply chain includes liquefaction plants, transportation DNA Integrated Operations. companies, and storage houses. A comprehensive software is One benefit of DNA Integrated Operations is that it is directly needed to monitor and master all the information between these connected to the supply chain, increasing awareness of all parties. situations along the line. And it is very adaptable. Every new user Very often, companies use several IT and automation systems experience adds to the value chain, enabling the customer to for each function. After one function, the information is moved utilise more affordable procurement of LNG from the spot market. manually to another system – and then further to yet another Whatever quality is required, the methane number and ethane system. The process can seem endless, requiring a lot of time and content are monitored constantly with help of the new solution. resources. In the supply chain, the point is real-time logistics operations. Jani Hautaluoma explains: “It is wise to understand what kind All ships and trucks have to be controlled. Knowing what and of priorities each country or investor sets. There are parties where every link is at all times offers tremendous benefits in interested in the whole infrastructure, and we can manage the optimising sourcing, in order planning for customers and in whole picture. Then, there are individual parties that focus on planning logistics efficiently – all of which add up to savings in certain parts of the whole chain. We can also offer dedicated time and costs. Valmet’s solution helps maximise the benefits that applications for those operations. With our solution, we are flexible are enabled by the technology. and adaptable.” “For instance, the LNG quality forecast, which is easily searchable in our solution, directly affects business profitability. Several databases and programs Therefore, customers can plan for which kind of LNG is needed into one where. The end customers will receive the quality product that The gas terminal is in a key position within the infrastructure, they request,” explains Hautaluoma. responsible for unloading, further re-, tanking, metering, and loading LNG. Usually, LNG is delivered from Qatar or Algeria to Know your business better European ports. Hautaluoma continues: “We have come to increasingly realise Logistically, there are several points where all stages are that our total offering is unique. Valmet offers the Valmet DNA documented, for instance, when receiving LNG from the vessels, integrated automation system – the Industrial Internet being metering LNG, or storing and tanking it. Nowadays, several an integral part of the whole – and DNA Integrated Operations. programs are used to collect the data to manage all the Especially in this case for LNG, sustainability is integrated into transactions. This requires manual work to transfer the data from research and development processes and tools.” one system to another. It jeopardises the flow of information and Valmet’s strategy is to support LNG infrastructure growth with increases the chance of mistakes. technology. In the future, LNG can be produced according to price indices, whereby external factors support the planning process. “Our solution is able to learn on its own and can then suggest new operational models. Indeed, safety, and risk control will become much more efficient,” Hautaluoma explains. In case of an accident, for example, the system can alert the police or fire department. The customer is always at the centre and determines who gets access to which part of the data. The user interface is then built exactly according to the request of those customers. What really makes this product different is that real-time process data is constantly available. And, the user interface is not only available in the control room – it is with the user, wherever it is wanted – on an iPad or mobile phone. “Our timing is perfect for this growing market,” states Hautaluoma. “I am convinced that the market will be building up to long-term business success. We can speed up the development Figure 1. Valmet DNA Integrated Operations. of the infrastructure and at the same time consolidate our position in the market and in customers’ minds.”

72 June 2018 Subscribe to LNG Industry

A unique source of information for the latest developments in technology

Subscribe online at: www.lngindustry.com/subscribe 74 WorldWorld GasGas ConferenceConference 2018 preview

LNG Industry previews a selection of companies that will be exhibiting at this year’s World Gas Conference in Washington, USA (25 – 29 June 2018).

75 ACD – Stand 2007

CD LLC is an engineering and manufacturing company fuels, industrial gas, and oil industries. With offices and service Aspecialising in a diverse line of centrifugal and centres on four continents and in 12 countries, ACD provides a reciprocating pumps and turbo expanders for alternative global presence while able to respond locally.

Air Products – Stand 1535B

ir Products is a world leader in natural gas liquefaction With over 50 years of LNG experience, Air Products has built Atechnology and equipment. The company’s experience 116 LNG heat exchangers for customers in 17 countries extends from plants producing less than 0.1 million tpy worldwide. LNG to the largest baseload plants in the world using the The company had fiscal 2017 sales of US$8.2 billion and AP-X® LNG process. Air Products’ MCR® main cryogenic heat has a current market capitalisation of more than exchangers and natural gas liquefaction processes are the US$35 billion. Approximately 15 000 employees in world’s standard because of their reliability, high efficiency, and 50 countries are driven by Air Products’ higher purpose to operational flexibility. In addition, the company’s processes and create innovative solutions that benefit the environment, equipment have been selected for the world’s leading floating enhance sustainability, and address the challenges facing LNG facilities. customers, communities, and the world.

Alaska LNG – Stand 1515

laska LNG is an integrated LNG and gas pipeline The Alaska Gasline Development Corporation is a Ainfrastructure project with three major components: A sovereign corporation owned by the State of Alaska, and is gas treatment plant located at Prudhoe Bay; an 807 mile responsible for the development and construction of the pipeline to Southcentral Alaska with offtakes for in-state Alaska LNG project. Maximising Alaska’s natural gas resources use; and a state-of-the-art natural gas liquefaction plant in will help the state meet its domestic needs and will provide Nikiski. Alaska holds America’s largest concentration of proven, reliable, stable, and competitive LNG supply to global conventional, but stranded gas supply. customers for generations. Alaska LNG is one of The Prudhoe Bay and Point Thomson fields will provide the the greatest American energy export projects and is the initial supply base with over 35 trillion ft³ of proven gas. The largest energy project since the Trans-Alaska Pipeline two fields will have an average daily capacity of System (TAPS). 3.5bbillionbft3/dbandbfirst cargoes are expected in 2024 – 2025.

American Petroleum Institute – Stand 1904

PI is the only national trade association representing marketing, pipeline and marine businesses, and service and Aall facets of the natural gas and oil industry, which supply firms. At API, industry standards are established and best supports 10.3 million US jobs and supplies affordable, practices are disseminated across the industry, nation, and reliable, energy for homes and businesses. The women and globe. Partnering with the best and brightest technical experts men of America’s natural gas and oil industry drive an energy from government, academia, and industry, the company has renaissance that has made the US and its allies more secure developed almost 700 standards to enhance the safety of while supplying clean natural gas that has cut US carbon workers and to protect the community and environment. emissions to 25-year lows. Building a better future takes energy. Through innovation API’s more than 625 members include large integrated and dedication, API’s members help the US power past the companies, as well as exploration and production, refining, impossible every day.

Anguil Environmental Systems – Stand 1410

ir pollution control and vapour combustion systems thermal oxidation, converting the pollutants to carbon dioxide Ahave been used throughout the petrochemical, oil and and water vapour. It differs from the catalytic, recuperative, and natural gas industries for off-gas treatment from amine direct-fired oxidiser technologies in that destruction is achieved treaters, glycol regenerators, nitrogen rejection units, tank vents, with little-to-no auxiliary fuel resulting in reduced greenhouse sulfur recovery systems, soil remediation projects, and more. gas emissions, lower operating expenses, and higher destruction However, the Regenerative Thermal Oxidiser (RTO) has been efficiency. increasingly applied on these applications because of its ability RTOs applied on oil and gas applications are often built to reuse thermal energy. The Anguil RTO destroys Hazardous with special materials of construction and design Air Pollutants (HAPs), Volatile Organic Compounds (VOCs), and considerations to withstand the corrosive gas streams found odorous emissions through the process of high temperature at these facilities.

76 June 2018 ISSION M VA E L V W E

O S

L

E N E V F I A R S O N L Y M E N T A L

At Velan, we know what it takes to design and manufacture industry-leading valves that stand the test of time. After all, we’ve been doing just that for over sixty years.

We offer a wide range of valves with a SIL 3-capability safety rating designed to meet your industry needs in LNG.

So next time you’re in the market for a reliable metal-seated valve that features bubble-tight shut off in both directions, why not take our Torqseal® triple-offset valves for a spin?

When it comes to valves that offer low emissions, easy maintenance, and long and reliable service, Velan is the name to trust.

+33 (0) 4 78 61 67 90 www.velan.com Baker Hughes, a GE company – Stand 1507

aker Hughes, a GE company, is a global gas leader, upstream, pipeline, and industrial. In today’s challenging global Bwith world-class rotating equipment portfolio for market, BHGE enable operators to optimise efficiency, reliability, gas transportation, pipelines and LNG technology, and availability across their processes. Minds, machines, and optimising customers’ operations, reducing their total cost of the cloud are all employed to break down silos and reduce ownership and lowering overall emissions. This includes the waste and risk; applying breakthroughs from other industries recent launch of game-changing products such as the LM9000 to advance its own. With operations in over 120 countries, the aero gas turbine for LNG mechanical drive in the 65+ MW company’s global scale, local know-how, and commitment to class, the LM6000PF+ 54 MW aero gas turbine, an evolution service infuse over a century of experience with the spirit of a of the LM6000 for LNG, and the NovaLT16 MW gas turbine for startup – inventing smarter ways to bring energy to the world.

Cheniere Energy, Inc. – Stand 1821

heniere Energy, Inc. is the leading exporter of US LNG customers to load cargos at Cheniere’s LNG terminals or receive Cand is poised to be a top five global supplier of LNG. them at regasification facilities worldwide. As of February 2018, Cheniere is currently operating and constructing its Cheniere, through its long-term customers or a fleet of LNG Sabine Pass LNG facility in Louisiana and is constructing a carriers, has delivered LNG to approximately 25 countries. second liquefaction facility near Corpus Christi, Texas. Cheniere Cheniere is based in Houston, with offices in London, Tokyo, is a full-service LNG provider, sourcing US gas and allowing Washington D.C., Singapore, Santiago, and Beijing.

Chiyoda Corporation – Stand 3213

hiyoda Corporation has wide-ranging business interests Having consistently maintained its extensive experience Cin such fields as energy, chemicals, petrochemicals, and far-reaching global network for more than 60 years, life science, environmental technology, and industrial Chiyoda provides an unrivalled advantage and is at the facilities. Since its founding in 1948, Chiyoda has built various forefront of a relentless drive for innovative plant design and plants and executed numerous projects in over 60 countries. world-class project execution. In the gas industry, Chiyoda is a leading contractor for With its wealth of experience and refined technologies, designing and constructing LNG plants, and is involved in Chiyoda offers a variety of highly reliable facilities that play a approximately 40% of the world’s total LNG production key role in the LNG value chain both in gas production and capacity. consumption.

ConocoPhillips – Stand number 2121

onocoPhillips is the world’s largest independent E&P installed production capacity in excess of 100 million tpy, Ccompany based on production and proved reserves. making ConocoPhillips the second largest LNG liquefaction With more than five decades as an LNG industry leader, technology provider. In addition to technology and licensing, ConocoPhillips has licensed its innovative Optimised Cascade® ConocoPhillips’ comprehensive LNG offering includes process for use in 25 LNG trains around the world. By 2021, developing LNG facilities, shipping remote natural gas to LNG plants utilising this process are expected to have a total market, and promoting LNG sales to new markets.

Corban Energy Group – Stand 1764

orban Energy Group is a diversified enterprise with sources components, integrates systems, negotiates terms, and Cenvironmental and energy related business interests. provides implementation oversight to deliver high-value, Among these is the manufacture and distribution of turnkey energy solutions. CNG and LNG equipment and systems to provide customers in Lately, most of the demand the company receives is for remote locations access to an economical, clean, and reliable LNG storage, storage with regasification, and complete LNG source of energy for transportation, power generation, and infrastructure projects. For example, Corban recently delivered process heating. and commissioned a transportable LNG storage and Corban leverages established relationships with leading regasification system to supply 1.2 million ft³/hr of startup engineering and manufacturing companies in South Korea fuel for a coal-fired power plant in the mid-Atlantic region, where, as a matter of national policy, natural gas has been the and, is currently building 12 1200 m³ bullet tanks to store primary sources of energy for over 20 years. Through these LNG for a remote power plant in sub-Saharan Africa. relationships, the company is able to offer customers Over the next 6 – 12 months, Corban expects to be world-class CNG and LNG engineering expertise and working on additional opportunities in the US, the Caribbean manufacturing technology. Corban manages communications, Basin, Colombia, Brazil, Italy, Indonesia, and Kenya.

78 June 2018 Keep Updated

Keep up to date with us to hear the latest LNG news

For more news visit: www.lngindustry.com Cosmodyne – Stand 2007

ith over 400 installations, Cosmodyne LLC engineers and specialised engineering company, Cosmodyne’s offerings include a Wmanufactures small to mid scale natural gas liquefaction series of plants which are highly modularised and easy to operate, systems and air separation plants and liquefiers. As a as well as the ability to supply customised solutions.

Cryogenic Industries – Stand 2007

ryogenic Industries, Inc., a Nikkiso company, together with Their expertise lies in the design, custom engineered solutions, Cits subsidiaries, has been a leading global enterprise in sales and after-market service of cryogenic machinery, process the industrial gas and energy industries for over 50 years. systems, and heat transfer equipment.

Cryostar – Stand 545

ryostar is a world leading supplier of cryogenic equipment choice of brakes adapted to every process (ASU, NLU, and N2 Cfor industrial, medical, and natural gas applications. generators). The company has always been a forerunner in the z Reciprocating pumps for liquefied gases; cylinder filling development of cryogenic technology – in 1967 Cryostar was pumps for industrial and medical gases; and high duty the first company in Europe to produce liquefied gas pumps for customer applications and LNG. distribution pumps and then submerged motor pumps. Cryostar supplies a wide range of equipment and solutions: z Centrifugal pumps for applications such as stationary transfer, mobile tanker loading/unloading, LNG refueling, z Turbo-expanders for natural gas processing, PDH plants, LNG bunkering. ethylene, and fertilizer plants. Particularly robust, reliable, z and highly efficient, they are built to the latest standards Natural gas compressors, Boil-off gas handling systems. such as API 617. z Small scale natural gas reliquefaction systems.

z Process pumps and turbo-expanders for industrial United by a strong culture and driven by values that place gas applications, offering increased reliability and innovation at its core, Cryostar personnel are highly committed product life, operational safety, ease of installation, to developing increasingly higher performing solutions and and reduced maintenance costs. Cryostar’s wide range equipment which meet their customers’ requirements at all of turbo-expanders are used for all types of gases, with a times.

DNV GL – Stand 3439

NV GL is a global quality assurance and risk management industry cooperation, the company creates and shares Dcompany. The company is driven by a purpose of knowledge with its customers, setting standards for technology safeguarding life, property, and the environment, development and implementation. From project initiation to enabling customers to advance the safety and sustainability of decommissioning, independent experts enable companies to their business. Operating in more than 100 countries, DNV GL make the right choices. professionals are dedicated to helping customers in the maritime, DNV GL believes that technological development will play a oil and gas, power and renewables, and other industries to make key role in driving energy sustainability and industry best the world safer, smarter, and greener. practice along the gas value chain. The company has a long- As the technical advisor to the oil and gas industry, DNV GL standing focus on industry measurement, compliance, and brings a broader view to complex business and technology risks energy security, as well as investment in solutions relating to in global and local markets. Providing a neutral ground for energy optimisation and operational efficiency.

ExxonMobil Corporation – Stand 2821

xxonMobil has significant experience in the LNG business years ahead of first cargo – a vital step for progressing projects. Ewith more than 35 years of LNG project development The company can also offer the capability to market regassified and market knowledge. The company has developed LNG volumes across the globe utilising its extensive in-country partnerships with both national and international oil companies gas marketing organisations. This can include the purchase and over the years, and has a significant presence throughout the marketing of upstream partner equity volumes. LNG value chain. ExxonMobil’s global presence provides early insight into ExxonMobil’s experience in marketing and commercial emerging energy markets. Its regional offices throughout the transactions associated with natural gas and LNG are a key world are staffed by experts knowledgeable in local cultures strength. This expertise translates into the ability to negotiate and markets to provide customer service for new and existing with and secure customers for multi-billion dollar LNG projects customers.

80 June 2018 Abundant Resources

Unrivaled Experience Global Vision

goldenpassproducts.com Bringing clean energy from Texas to power the world. FortisBC Energy Inc. – Stand 1108

ortisBC’s measurement department manages and services FortisBC’s accredited repair and testing facility is able to Fthe measurement devices for more than a million gas and service most natural gas meters (diaphragm, rotary, turbine, electric customers. In addition, the company provides gas coriolis), and the company operates an ISO 17025 certified high and electric measurement services to other utilities, municipalities, pressure test lab that can test flow meters over a wide range of pipeline, and transmission companies across North America. operating conditions.

Freeport LNG – Stand 2045

reeport LNG Development, L.P., owns and operates gas. Approximately 13.5 million tpy is currently committed Fa LNG import/export terminal near Freeport, Texas. under 20 year offtake agreements with Osaka Gas Co. Ltd.; Currently under construction with commercial JERA Energy America LLC; BP Energy Company; Toshiba operations expected in early 2019, the liquefaction Corporation; and SK E&S LNG, LLC. A further expansion to facilities have an LNG export capacity of approximately add 5 million tpy of additional capacity is under development, 15 million tpy, or approximately 2.3 billion ft³/d of natural with commercial operations as early as 2022.

Gastech Exhibition & Conference – Stand 564

trusted brand for over 40 years, dmg :: events global exhibitors and 16 exhibiting country pavilions, while Aenergy organises many of the world’s most important gathering over 30 000 international professionals from exhibitions and conferences including Gastech across the global gas, LNG and energy industries. Over Exhibition and Conference, the Global Petroleum Show, and the 3500 delegates and 1200 ministers, government officials, Abu Dhabi International Petroleum and Exhibition Conference. presidents, managing directors, CEOs, and chairmen will hear Gastech Exhibition and Conference has been at the from 350 senior speakers across the multi-streamed strategic forefront of the international gas, LNG, and energy industries for and technical conference with over 100 sessions and five over 45 years. The world-renowned event is regarded as the additional specialist conferences. most significant meeting place for upstream, midstream, and Gastech 2018 is co-located with the downstream gas and LNG professionals to convene and do Global Power & Energy Exhibition and is collaborating with the business. European Association of Geoscientists and Engineers (EAGE) to Gastech 2018 will span over 50 000 m² of exhibition deliver a full agenda of events that addresses the industry’s space, showcasing over 700 international, regional, and local move to a more integrated supply chain.

Gazomat – Stand 1203

azomat, a company of the American Ecotec group, is interconnected monitoring solutions, available as web software Ga specialist in gas leak detection equipment for gas and mobile app, thus addressing gas utilities’ needs for data network survey, emissions monitoring, and operator integrity, network management optimisation, and regulatory protection in hazardous environments, providing top of the line compliance. instruments and working with some of the largest gas utilities Gazomat’s major products include the proprietary ATEX in the world for the past three decades. certified Inspectra® laser detector, available for both pedestrian Gazomat’s detection technology is based on laser and vehicle network surveys, as well as the NGS Network survey spectroscopy (tunable laser diode), offering high-level with real-time geolocation, time signature, data logging for performances: Methane selectivity, ppb sensitivity, and rapid further analysis, reporting, and auditing. response time. Gazomat has a reputation for great customer support backed The first to introduce traceability software working in up by a strong team of technical experts. The company has offices conjunction with its vehicle mounted gas analysers and in the USA, China, France, Italy, and Brazil. It is also represented portable detectors, Gazomat innovates further with new fully worldwide through an extensive distribution network.

Gas Technology Institute (GTI) – Stand 2609

TI is a leading research, development, and training market sectors and services at every phase of the technology Gorganisation addressing global energy and development cycle, from concept to commercialisation. The environmental challenges to enable a secure, abundant, company’s efforts include research and development, program and clean energy future. management, technical services, analytical services, consulting, For more than 75 years, GTI has been providing economic commercialisation, and education and training. value to the natural gas industry and energy markets by GTI leads a slate of R&D programs focused on LNG across developing technology-based solutions for industry leaders, the energy value chain; offers knowledge-based services on governments, and consumers. The company focuses on expanding technical, economic, business, and regulatory aspects of the the supply of natural gas and renewable energy, ensuring a safe LNG industry; and provides training programs and industry and reliable natural gas infrastructure, promoting the efficient data. GTI sponsored the first global LNG conference in use of energy resources, and reducing carbon emissions to the Chicago in 1968 and continues as an owner of the triennial environment. GTI initiatives lead to emerging technologies across event.

82 June 2018 Worldwide Coverage

A global industry requires a global publication

Register for free at: www.lngindustry.com Hexagon Composites ASA – Stand 611

exagon PPM is a world leading provider of asset life capture of the ‘as is’ state of a facility, the ‘digital twin’. The first Hcycle solutions for design, construction, and operation steps can be taken by digitalising the already existing data and of industrial facilities. By transforming unstructured information to create a centralised and integrated digital information into a smart digital asset, clients are empowered representation of the facility. Having this digital twin offers LNG to visualise, build, and manage structures and facilities of all operators an unprecedented chance to increase productivity and complexities, ensuring safe and efficient operation throughout profitability to transform and automate work processes. the entire life cycle. PPM is part of Hexagon, a leading global provider of Within the LNG industry, Hexagon PPM helps operators to information technology solutions that drive productivity and embark on a digital transformation journey by supporting the quality across geospatial and industrial landscapes.

Nikkiso Cryo – Stand 2007

ikkiso Cryo, Inc. is a leading supplier of cryogenic application of high pressure pumps for use on regasification LNG Nsubmerged electric motor pumps for the liquefied gas carriers, cryogenic pumps installed on an LNG GBS, as well as industry. NCI’s innovative designs have resulted in the first pumps for a variety of LNG, LPG, and other applications.

Orbital Gas Systems – 3739

s the pioneer of innovative gas solutions GasPT® z Metering skids. and VE Technology®, Orbital Gas Systems (Orbital), A z LNG terminals. a CUI Global Company, is the leader in innovative gas solutions, with nearly 35 years of experience in design, z Fuel/fuel gas delivery systems. installation, and the commissioning of industrial gas z Odourisation. sampling, measurement, and delivery systems. Operating z Catalyst prototype system. globally within energy, power, and processing markets, Orbital manufactures and delivers a broad range of z H2S storage and delivery. technologies including environmental monitoring, gas z Special industrial gas storage and delivery. metering, process control, telemetry, gas sampling, and z Fiscal, metering, and compliance systems. BioMethane. Orbital services a wide range of industries with a diverse z Continuous emission monitoring systems. range of applications: z Fuel/biofuel storage and delivery. Schneider Electric Software – Stand 535

chneider Electric Software is leading the digital This enables oil and gas companies to protect investments in Stransformation by helping oil and gas organisations to systems and technology while driving digital transformation address operational and business imperatives across their initiatives forward. Supported by the largest industrial software entire value chain. ecosystem, including over 4200 partners and 5700 certified Schneider Electric Software’s Industrial Software Platform developers worldwide, customers can rest assured global offers highly proven capabilities across engineering, planning delivery and software support standards will be consistently and operations, asset performance, and monitoring and control. deployed at the highest quality to every location. With over 2 million software licenses deployed at 100 000 sites Offering a wide range of commercial options worldwide, the Industrial Software Platform operates at the (Subscription, SaaS, Perpetual) and deployment flexibility scale necessary to support the asset and operations life cycle (on-premise, cloud based) across its available functionality, across mission critical operations. the Industrial Software Platform ensures the lowest total cost The Industrial Software Platform is a hardware and systems of ownership without compromising risk, data security, or agnostic and so can be deployed in a scaled, modular fashion. performance requirements.

STATS Group – Stand 2000

TATS Group are market leaders in the supply of safety. Mechanical pipe connectors replace the need for welding, Spressurised pipeline isolation, hot tapping, and plugging significantly reducing expenditure and associated risks with services to the global oil, gas, and petrochemical hot-work. industries. STATS DNV GL type approved isolation tools provide STATS have gained an excellent reputation for providing a leak-tight double block and bleed isolation that enables safe responsive, client-centred approach combined with expertise and efficient maintenance and repair of onshore, topsides, and and innovative products which: subsea pipeline infrastructure. The company’s Process Plant Solutions offer hot-work z Enhance safety and environmental performance. barriers and localised hydrostatic test tools to verifying the z Reduce system or plant downtime. integrity of welds or fittings, reducing system downtime, minimising environmental impact, and increasing worksite z Improve asset performance.

84 June 2018 z Support decommissioning and abandonment. STATS provide high quality, fit-for-purpose solutions to Project management and engineering services are provided ensure that the pipework and pipeline infrastructure of clients to support client needs including turnaround scopes, feasibility meet the technical, safety, and environmental standards required. studies, and contingency planning. STATS in-house expertise Headquartered in Aberdeen, Scotland, STATS Group operate covers the plant’s lifecycle from pre-commissioning through to globally through a growing network of operational bases, decommissioning and abandonment. branch offices, and partners.

TechnipFMC – Stand 4125

echnipFMC is a global leader in subsea, onshore/offshore world’s six largest LNG trains in Qatar, the first plant in Tand surface projects. The company possesses proprietary Yemen, and several mid-scale plants in China. technologies and production systems, integrated z FLNG – the company’s combined experience in LNG, expertise, and comprehensive solutions, which are transforming offshore and subsea systems make us the leading clients’ project economics. engineering contractor in FLNG facilities through In the gas industry, TechnipFMC is a leader in field contracts with TechnipFMC-led consortia for Shell Prelude, production facilities, pipelines, and gas processing facilities in Petronas Satu, and ENI Coral South. all environments. The company’s technologies and process z Technologies – while focused on project execution, designs provide energy-efficient and cost-optimised solutions TechnipFMC is continuously developing innovative for gas monetisation. technologies to meet its clients’ needs. Processes for z LNG – with nearly 60 years of LNG experience, TechnipFMC NGL recovery and nitrogen rejection from LNG, plus the is a top tier EPC contractor that together with its joint company’s association with Wieland and Kelvion for high- venture partners has delivered Yamal LNG Train 1, the performance exchangers, are examples of its contributions. A new near shore LNG concept Noritaka Takata, Jeff Knox, Puneet Sharma, and Dan Winkler, MODEC International Inc., USA, discuss a new combined floating and grounded LNG offshore gas field liquefaction, storage, offloading, and power generation concept with worldwide application possibilities.

trong growth, in the medium term (2017 – 2020), The American Bureau of Shipping (ABS) classified the system Sis expected to push total global LNG demand to as an IMO SOLAS MODU (Mobile Offshore Drilling Unit).4 314 million tpy by 2020, from 280 million tpy at The Single Steel Drilling Caisson (SSDC) was fabricated the end of 2017, reaching 480 million tpy by 2030.1 Over by modifying Very Large Crude Carriers (VLCC). The MAT was the last 10 years, several large offshore gas fields have a new steel structure capable of both supporting the SSDC been discovered.2 In some of those locations, or when (170 000 t) and its operations, and resisting the onshore security is a concern, near shore facilities have environmental loads via a 2 m steel skirt systems under the been designed for export that tend to improve the overall MAT. The SSDC was mated with the MAT after construction economics of a project. and then transported and ballasted down as a single unit to its first drilling location (Phoenix) in the Limitations of current offshore US Beaufort Sea.5 LNG systems Due to weight limitations, current fixed and floating offshore Combining floating and grounded units cannot accommodate large plants such as those for units for near shore LNG plants power generation, LNG storage, and liquefaction. Both Past experience and continued development of concepts structures become cost prohibitive after a certain size. Fixed to address known design and operational issues led to the platforms are also costly to decommission. Environmental idea of converting floating units into grounded units. The conditions at the operating site are often challenging for new near shore LNG grounded liquefaction, storage, and the design and cost of the turret/anchor/offloading systems, power generation concept provides the industry with several increasing the risk of accidents and/or affecting the uptime advantages in 10 – 35 m water depth (Figure 1)6: of the plant. z Easily expandable to accommodate increasing production. The SSDC/MAT exploratory drilling system z Low cost existing floating units modified to be grounded on a steel base for ease of installation and The idea of combining a used modified donor decommissioning. carrier with a grounded structural base is not new. Canadian Marine Drilling Ltd. used a similar concept for z Head-to-toe installation for protection against exploration drilling in the Canadian and US Beaufort Seas.3 challenging environmental conditions.

86 87 z Flexibility to add a power generation unit for distribution  A 4.7 million tpy facility, topsides weight of 30 000 t to the LNG operations and sale to local markets. (footprint: 220 m x 60 m). z Extra security for the workers, facilities, and operations.  Tanks used for condensate, LPG, and refrigerant storage. z Re-use of the hull and base units.  Protection against the weather and other z Efficient near-shore LNG operating system at an environmental conditions. attractive cost.  Large amount of available VLCCs on the market for z Minimal-to-no seabed preparation and low footprint. conversion.  Little motion means reduced limits on towers or This new design/technology has the following exchangers during operational conditions. characteristics: z A conventional Moss LNG carrier converted into a z A conventional VLCC converted into a Grounded LNG Unit Grounded Storage Unit (GSU): (GLNG) – clean dry gas with methane and contaminants  Storage for 60 000 t (133 000 m³) of LNG with removed: additional storage for condensate and fuel  A 2.5 million tpy facility, topsides weight of 20 000 t (footprint: 200 m x 45 m). (footprint: 180 m x 60 m).  Storage for 100 000 t (222 000 m³) of LNG with additional storage for condensate and fuel Table 1. GSU hull details. (footprint: 270 m x 50 m).  Offloading with or without a jetty to the LNG carrier. Donor tanker LNG carrier  Additional storage units as necessary for increase production. Dimensions 270 m x 45 m x 25 m  1970/1980s tankers have design life of 30 years. An DWT 75 000 t additional 25 – 30 years represents the vessel lifetime extension and conversion work in the shipyard. LWT 22 000 t  Many Moss tanks are still pristine with an overall design life of 50 – 125 years. Existing steel Approximately 15 000 t  The FLNG or GLNG unit transfers the produced LNG Modified dimensions 204 m x 45 m x 25 m to the GSU for storage until being offloaded to a LNG carrier. New reinforcement steel 5000 – 7000 t z A conventional VLCC converted into a Grounded Water LNG storage capacity 58 000 t (122 000 m3) and Power Generation Unit (GWP):  Power, water (SWRO Desalinisation unit), Permanent and temporary ballast Required accommodations, utilities, stores. Water ballast capacity 62 000 m3 (18 tanks)  Living quarters meet ‘siting and fire/blast’ requirements.  Power delivered to other units via cables on deck and to shore via subsea cables.  Drinking water sent to other units via deck piping and to shore via a subsea water pipeline.  Large amount of available VLCCs on the market for conversion. Case study – the GSU LNG storage Figure 1. Computer rendering of the new near-shore unit grounded and FLNG concept. The concept layout of two permanently grounded GSUs in a near-shore location installed head-to-toe to protect an offloading LNG carrier is illustrated on the left side of Figure 1. Each unit is made of two structures: The GSU Hull and GSU Base. For the GSU Hull, the concept objectives were: z Standard design, utilisation of existing vessels, and proven conversion execution plans. z Minimise offshore installation, maintenance, downtime, and risks. z Removal and disposal of the forward and aft sections. z Modification and re-construction of the bow and stern structures. Figure 2. GSU – converted Moss LNG carrier with steel base. z Structural reinforcements.

88 June 2018 z Set down onto a steel Base. z Flexibility, ease of constructability, and removal. The concept is illustrated in Figure 2 and details are z Design operating water depths from 10 – 35 m. shown in Table 1. z Suction skirt system for improving resistance to gravity After conversion calculations, Light Weight Tonnage and environmental loads. (LWT) for the site and transit conditions was evaluated along z with the GSU hull hydrostatic characteristics and still water Interface system between the hull and base for loads bending moment and shear force without reinforcement. transfer to the seabed. Stability criteria were based on ABS unrestricted service and z Transit, set down and on-bottom stability with and a site with a water depth of 18 m, a GSU base height of without the GSU hull. 10 m and a 1.5 m storm surge. The results of the intact trim z Pumping system for both ballast and skirt suction and stability analysis met all assessed loading conditions. requirements. The GSU hull reinforcement requirements were: z Permanent ballast weight and stresses to keep the The concept is illustrated in Figure 2 and details are GSU hull onto the GSU base (sliding resistance against shown in Table 2. environmental loads). Stability criteria were similar to the GSU hull criteria. The concept design for operating conditions after mating with z Local and global forces and moments due to the the GSU hull and set down onto the sea floor were: unevenness of the seabed transferred from the GSU base. z Combined GSU hull and base loading conditions, z Structural local and global loads on the exposed side of environmental and hydrostatic loads/moments and the GSU hull. seabed soil variations. z Full and empty conditions. z Full and empty conditions of the GSU hull. z Mating and set down loading conditions. z Mating with the GSU hull and set down loading z Serviceability for continuous operations while sitting conditions. onto the GSU base. z Serviceability for continuous operations with loads transferred from the GSU hull. The GSU base is a new steel structure also requiring a pump room for ballast requirements for transit, set down A preliminary design including LWT calculations, steel and on-bottom stability and lifting requirements at the time weight, and tank, wind, current, wave, and combined of decommissioning. The GSU base concept objectives were: environmental loads and moments was completed for both bm=oŠu;]bv|;uŊbubĺ1ol A WORLD OF SERVICE

The oceans may be vast, but we’re always close. 24/7 service

‰‰‰ĺu;]bv|;uŊbubĺ1ol ruoˆb7;7=uolƑѶoL1;vķѴo1-|;7 bml-fouv_brrbm]-m7Cm-m1b-Ѵ centers around the world.

_oov;|oY‹|_;‰ouѴ7ĽvѴo1-ѴY-]ĺ 0Ѵo]ĺu;]bv|;uŊbubĺ1ol

m|;um-ঞom-Ѵ!;]bv|ub;vķm1ĺ bm-LѴb-ঞom‰b|_|_;-uv_-ѴѴvѴ-m7v-ubঞl;şourou-|;7lbmbv|u-|ou Table 2. GSU base details. the GSU hull and base.7,8 Both factors of safety (FOS) for the sliding resistance and overturning moments were adequate Structure type New steel structure (EH 36) using Load and Resistance Factor Design (LRFD) requirements9 by including permanent ballast in the GSU 204 m x 45m (top) and 95 m (bottom) Dimensions hull and water ballast in the GSU base. x 10 m A Finite Element Analysis (FEA)10 was also performed Skirt systems Suction, 2 m with a full-length global model. The model has been loaded using the maximum environmental loads oriented Steel weight 25 000 – 35 000 t perpendicular to the centerline of the ship. Several soil Water ballast capacity 156 000 m3 (6 tanks) variations must still be considered to represent the unevenness of the seabed soils if costly seabed preparation Permanent ballast Not required is to be avoided. The full-length global FEA model is shown in Figure 3. Transit trim and set Requires stability towers down The GSU hull has some localised structure not meeting the ABS7,8 yielding and buckling design criteria (utilisation ABS inspection Requires permanent access tower factor greater than 1.0) in terms of frames and bottom structures, as well as some areas in the shell plating in the Interface between hull Hard rubber/foam with tethers/ and base cables FWD and AFT ballast tanks. These overstressed areas can be easily addressed through local reinforcements (5000 – 7000 t estimate – Table 1). The GSU base structure shows also very limited areas not meeting the ABS7,8 yielding and buckling design criteria around the openings in frames and longitudinal bulkheads. These areas can be easily addressed by utilising an updated opening geometry or sizing. GWP unit The advantages of the Grounded Water and Power Unit are numerous and contribute towards a cost-efficient unit. The full length of the ship deck is maintained to satisfy the living quarter ‘siting and fire and blast’ requirements. The bow and stern (including machinery) could also be removed and the Figure 3. Full length global FEA model. deck space maintained by using end cantilevers. GLNG unit Similar to the GWP unit, the advantages of the Grounded LNG Unit are also numerous and contribute towards a cost-efficient unit for near shore operations of facilities. This unit is similar to the GSU unit, which requires the truncation of both the aft and a used VLCC. References 1. Global LNG Outlook 2017. BNEF’s Long Term Forecast of LNG Markets to 2030. Bloomberg New Energy Finance. 2. Offshore Technology Magazine, The World’s Biggest Figure 4. Computer rendering of GWP unit. Offshore Gas Projects, February, 2014. 3. Wichert, A., and Helmer, M. “The SSDC/MAT – Construction and Delivery”. Arctic Offshore Technology Conference, 1986. 4. SSDC (7221419) and MAT (8601280) ABS Certification Records. American Bureau of Shipping. 1986. 5. Jolles, Wim. H. The Relocation of the SSDC/MAT in 1987. Marine Technology, Vol. 27, No.4, July 1990, pp. 225-236. 6. N. Takata, J. Knox, P. Sharma, D. Winkler, MODEC International Inc., 2018, “Application of Oil and Gas Industry Solutions to Achieve Low Cost Facilities for Monetization of Large Gas Fields”, Offshore Technology Conference, OTC- 28921, February 2018. 7. American Bureau of Shipping. 2017. “Rules for Building and Classing Floating Production Installations”. 8. American Bureau of Shipping. 2004. “Buckling and Ultimate Strength Assessment for Offshore Structures. 9. ISO 19900. “General Requirements for Offshore Structures”. International Standards Organization. Petroleum and Figure 5. Computer rendering of a GLNG unit. Natural Gas Industries. 10. SAGA, Version 3.12, Viking Systems, 2017.

90 June 2018 Balancing risk Paul Sullivan, Steelhead LNG, USA, discusses balancing the risk management challenges of LNG assets and projects.

isk is part of any major project and LNG is no in anticipation of meeting the expected future Rdifferent. Natural gas is the fastest growing upswing in demand? The question of how to fossil fuel globally, with LNG playing a respond to this dilemma is at the heart of major part in the rise in supply of this increasingly conversations between the financial community, important energy source. Fuelled predominantly by operators, and the supply chain around the globe, growing demand from Asian economies, LNG’s growth as it influences the relationship between them and has quadrupled since 1995, doubling its share of has a major bearing on any consideration of project the international natural gas trade and triggering risk management. a significant increase in export capacity from gas Obtaining finance for LNG projects in the producers including Qatar, Australia, and the US. current climate can be challenging. Projects can fail LNG’s popularity in recent years has led to a to secure sufficient investment for many reasons; current excess of production on a global scale and from high contractor costs in some countries, to created a supply/demand imbalance, leading to limited federal government support; but all boil supressed commodity prices and, in some cases, down to concerns over the extent of the economic increased financial pressures from owners on the EPC returns. (engineering, procurement, and construction) supply The financial outlay for a LNG development chain. However, this oversupply is expected to have can also be significant. For example, the typical corrected itself by the middle of the next decade as cost of a 5 million tpy liquefaction plant can range demand is forecast to run ahead of production once from anything between US$4billion and more. US$7billion. However, cost over-runs, schedule The industry is therefore faced with a dilemma slippage, and operational issues can cause right now. Does it manage itself in line with current these figures to grow, sometimes by as economic and supply conditions, and therefore impact much as 30%. The reasons for this can on impeding future growth, or risk financial outlay now include site location,

91 socio-political issues, misalignment among project stakeholders, critical importance to successful project delivery. A key aspect of inadequate planning, and inexperienced project teams. As a result, this process is for all parties to ensure at the outset that they have it is not difficult to see the challenges financiers, owners, and the agreed complete, consistent, and compatible contracts; and that all supply chain can face when trying to gauge accurate project costs, suppliers at every level have been considered in this process. The and the impact on investor confidence that such fiscal movement contracts to be considered will include those for or with EPC or can have. EPCM (engineering, procurement, and construction management) A better understanding among the financial community of the companies; shareholders, joint ventures, and consortia agreements; variations in the LNG market and the creation of innovative and works delivery, project site, and support contracts; and any dynamic financing models on behalf of the industry, could help sub-contracts. reduce these fiscal challenges and assist preparation for the It is not uncommon for inconsistencies to exist between impending increase in demand. contract conditions, specifications, and drawings for different suppliers, and these should be resolved at the beginning of the Managing the risks project to avoid any potential uncertainty around specifics. A It is important to recognise that no project, however well planned common understanding among all stakeholders of what is or designed, will ever be risk free. All LNG projects generate their required of each one is critical to successful project delivery. own set of specific challenges in relation to their contracting Achieving this clarity at the outset can avoid delays and approach and associated risk management, and this is exacerbated commercial tensions. Increasingly there are proprietary digital by their scale and complexity. While the notion that a project’s systems available to capture both the data requirement and intent risk can be outsourced to the supply chain may be one that some of risk management/sharing. owners might welcome, such tactics seldom have a successful Thorough planning at the pre-FEED and FEED (front end outcome. The management of risks therefore needs to be planned engineering and design) phase can offer the greatest potential to carefully, with the involvement of all the project’s stakeholders. influence overall costs and the project’s estimated timeline. A The success of this multi-stakeholder approach in generating number of issues have to be considered in this front-end phase. effective solutions and navigating both the broad risks of the These include an assessment of the initial concept (incorporating overall project and the specific risks associated with it will depend technology selection and capabilities of the final facility), a review on many factors. Significant among these will be the experience of the project’s feasibility (including the potential for energy and expertise of the owner who has commissioned the scope of optimisation, waste minimisation, structural integrity, and ease of work and that of the supply chain contractors in delivering it. A maintenance), and agreed definitions in terms of design, ability to thorough and rigorous appraisal of the investment at the earliest build, and implementation of shared learnings. Agreement and stages can also help mitigate risks later down the line. This is clarity in the FEED stages of the project also allows a smoother customarily provided by the performance of pre-FEED and FEED, to transition to the EPC stage of detailed design, construction, and deliver greater certainty of outcome and risk reduction. start up of the facility as well as enabling greater accuracy in From a supply chain perspective, risk management in LNG project cost estimates. projects is often influenced by the potentially conflicting objectives Project financial investment decisions (FIDs) are normally of participating shareholders, consortia, and joint ventures. These concluded around the same time that scope of work definitions can be exacerbated by bespoke contracting agreements, site- are agreed. This is usually when there is a workable degree of specific requirements, and the capabilities of the leadership and clarity relating to the extent of the project’s costs and risks and management team. At a local level, there can be uncertainties over coincides with agreement and delivery of the contracting strategy supply chain participants, as well as labour availability, quality, and in advance of the construction phase. work patterns. Sharing risk and information Understanding the challenges effectively Key to understanding and developing an effective risk profile for For the owner, a number of facility contracting models exist but a project is a thorough appraisal of the potential risks involved each has a degree of risk attached. and the development of a comprehensive plan with assigned EPC turnkey operations, for example, can generate the responsibilities. potential for process guarantees to be exceeded. However, such Risks cannot be effectively managed unless they are fully ‘lump sum’ models can attract a significant risk premium and can understood by everyone involved in delivering the project. This involve built in price contingencies to cover for fluctuations in requires a clear understanding and recognition of which risks activity. potentially impact, and can be dealt with, by each of the specific EPCM models incorporating a risk reimbursement approach stakeholders at every level. A common understanding of the risk can identify and optimise cost efficiencies, which can benefit the profile for each of these stakeholders, and what capacity and economic performance of the project. However, they can raise capability they have of carrying them effectively, is important. All questions regarding accountability. too often there can be misunderstandings between project Project management contracting or an integrated project participants over the nature of the risks involved, who is management team can deliver experienced staff, resources, and responsible for handling particular risks, and how to manage them. systems to effectively take the challenges of facilities’ Failing to resolve this issue early in a project can impact management away from the operator. They can also offer significantly on effective risk management. independent reporting and accountability. However, for some owners, outsourcing such a degree of control can be difficult. Establishing contract clarity In an industry where accurate financial forecasting can be a The establishment of a robust risk management plan, which considerable challenge, the ability to fix costs wherever possible details the roles and responsibilities of all stakeholders, is also of can provide genuine benefit. One way to achieve this is for the

92 June 2018 owner and contractor to agree a fixed price for those phases of the project that have predictable, managed outcomes, and for the remainder of the work to be undertaken on a risk-return basis. A key component in whichever model is chosen for delivering and managing a facility is effective and efficient SUBMERGED MOTOR communication and dialogue across all stakeholders. With a large number of contractors often involved, the ability to CRYOGENIC PUMPS communicate in a timely and efficient manner can reduce operational and health and safety risks. It can also support FOR LIQUEFIED GASES optimum decision making and lead to project cost reductions. Information sharing can be a positive approach from both the owner and the supply chain, to understanding and recognising default behaviours as a way of delivering optimum project benefits, rather than as a contractual entitlement to avoid liability. Allowing open access and establishing mitigating protocols are a key part of this process. Information obtained in a direct and timely manner from the originating source also assists transparency and can minimise impact on completion of the GLOBAL LEADER IN DEVELOPMENT, project. There are now several systems available in the market to ensure this gathering of ‘Honest Data’ which will benefit the ENGINEERING AND TESTING ENGINEERING AND process immensely. Progress reporting and forecasting Once the initial plans have been established for most LNG projects, the conventional focus is then on retrospective progress reporting and the targeting of completion milestones. While a review of the risk management plan and lessons learned post project completion are clearly important, the identification of short, medium, and long-term forecasting during the project’s lifecycle can help to provide proactive and accurate assessments of progress. This approach can also help develop skills among project professionals for the delivery of quality forecasts. Conclusion The management of risk plays a considerable role in the effective delivery of LNG projects. The development of the industry is in a state of flux due to the current supply-dominated low commodity prices, with widespread recognition that demand Superior Reliability will increase in the next few years. In this case it is extremely difficult for the supply chain to predict accurate project costs. It is therefore incumbent on the supply chain and owners to Full Range of Cryogenic Pumps consider the adoption of more flexible and innovative contract delivery models that incorporate a blend of fixed prices and risk ‡,QWDQNUHPRYDEOHSXPSV return where contractor experience can be directed to reduce costs. A clear understanding of the project definition at the ‡9HVVHOPRXQWHGSXPSV FEED stages, and of the objectives and progress at each level, ‡)L[HGPRXQWHGSXPSV aligned with a robust and comprehensive risk management strategy, can help identify risks at the outset and offset their Low total cost of ownership occurrence once engineering, procurement, fabrication, and construction has begun. The development of an LNG project, like the construction of No shaft seals - maximize safety, major structures and infrastructures in other industries, with low maintenance costs incorporates risks at varying levels. While current low gas prices might be driving challenging cost models, particularly affecting the EPC sector, there is one potential risk that arguably overrides Unparalleled quality all others: The risk of doing nothing. With LNG developments taking several years to build, the impact of not progressing the Exceptional pump-down capability facilities now that we will need to facilitate the industry’s future ([WUHPHO\ORZ136+5 growth could have lasting consequences.

WWW.NIKKISOCRYO.COM ADINDEX

Advertiser Page Advertiser Page

Linde Engineering North ACME Cryogenics 27 13 America

Air Liquide 59 LNG Industry 73, 79 & 83

Air Products 35 MAN Diesel & Turbo 55

Alaska Gasline 09 Nikkiso Cryo 93 Development Corporation

Chart Industries 11 OHL Gutermuth 23

Cheniere OFC & 39 OLT Offshore LNG Toscana 95

Owens Corning FOAMGLAS® ConocoPhillips 07 51 INSULATION

Corban Energy Group 17 Quadax 69

Cryonorm 43 Quorum Software OBC

Cryostar IBC Stahl CraneSystems IFC

Eilbeck Cranes 19 Sulzer Chemtech 37

Elliot Group 02 TechnipFMC 31

EnerMech 65 Temati 95

Golden Pass LNG 81 TGE Marine Gas Engineering 85

GTT 47 Velan 77

International Registries 89 Zwick Armaturen 04

LNG Industry is audited by the Audit Bureau of Circulations (ABC). www.lngindustry.com An audit certifi cate is available on request from our sales department.

...ON the 15FACTS USA

As of 2017, the number of liquefaction sites in the US reached 110 On 30 March 1897, the US purchased Alaska The US is the fourth More presidents largest country in the from Russia for were born in world by land area and US$7.2 million Virginia than in third by population any other state

More than 500 TORNADOES occur In January 1959, the each year in ‘Tornado Alley’, an area world’s fi rst LNG tanker which spans across northern Texas, carried LNG across Oklahoma, Kansas, and Nebraska the Atlantic from Lake Charles, LA. to Mexico receives the Canvey Isand, UK largest proportion of US LNG exports in US LNG exports (20%) 2017 totalled just New York and Los Angeles under 2 billion ft 3/d In service since are the only two cities in the 2008, Cheniere Energy’s US to have at least two teams The fi rst commercial Sabine Pass competing in each of the four was the US’ major sports leagues exports of LNG from fi rst LNG the US began in 1969 export facility There are 14 US LNG projects due to come online between 100 acres 2020 and 2025 of pizza are served in the Cows outnumber Florida East Coast Railway US every day humans 3 to 1 in Montana recently became the fi rst North American railway to fuel its entire locomotive fl eet with LNG

96 June 2018