design considerations for your next, small-scale lng...

A World of Solutions

Design Considerations for Your Next, Small-Scale LNG Project

Robert R. Huebel

Santiago, Chile – Oct. 28-29, 2015

0

Safe Harbor Statement

This presentation contains forward-looking statements regarding CB&I and represents

our expectations and beliefs concerning future events. These forward-looking

statements are intended to be covered by the safe harbor for forward-looking

statements provided by the Private Securities Litigation Reform Act of 1995. Forward-

looking statements involve known and unknown risks and uncertainties. When

considering any statements that are predictive in nature, depend upon or refer to future

events or conditions, or use or contain words, terms, phrases, or expressions such as

“achieve”, “forecast”, “plan”, “propose”, “strategy”, “envision”, “hope”, “will”, “continue”,

“potential”, “expect”, “believe”, “anticipate”, “project”, “estimate”, “predict”, “intend”,

“should”, “could”, “may”, “might”, or similar forward-looking statements, we refer you to

the cautionary statements concerning risk factors and “Forward-Looking Statements”

described under “Risk Factors” in Item 1A of our Annual Report filed on Form 10-K filed

with the SEC for the year ended December 31, 2014, and any updates to those risk

factors or “Forward-Looking Statements” included in our subsequent Quarterly Reports

on Form 10-Q filed with the SEC, which cautionary statements are incorporated herein

by reference.

2 A World of Solutions

Presentation Overview

• Introduction

• Definition of “Small Scale” LNG

• Small Scale Applications

• Typical Small Scale Project – Peak Shaver

• Project Design Considerations

• Typical Project Economics

• Wrap Up & Summary

3

CB&I Overview

• Founded in 1889

• Listed on NYSE

• Full Service Technology & EPC Company

• Focused on Energy Infrastructure

– Oil & Gas

– Refining

– Petrochemicals

– Power

• 60 Offices & 54,000 Employees Worldwide

• Exemplary Safety Record

Recent South America Experience

Project Description Location Comp

GNL Quintero SA LNG Import Terminal Chile 2010

Peru LNG LNG Liquefaction/Export Peru 2010

Pluspetrol Peru Camisea Gas Plant Tr #5 Peru 2012

Refineria de Cartegena Refinery Expansion Colombia 2015

CB&I LNG Experience

6

CB&I LNG Experience

• Long Heritage in LNG Industry

(50+ Years)

• Experience Includes

– Base Load Liquefaction

– Export Terminals

– Import Terminals

– Storage

– Regasification

– Small Scale

• Scope includes:

– Expansions

– Revamps

– Grassroots

– FEEDs

– Turnkey EPC

7

Canvey Island, UK

CB&I LNG Firsts

• Designed and constructed the world’s first double wall LNG storage tanks on Canvey Island and in Lake Charles in 1958

• Designed and constructed world’s first peakshaving plant in 1965

• Designed and constructed the first marine LNG storage and distribution terminal in the United States in 1971

• Designed and built world’s first full containment 9% Ni steel and concrete LNG storage tanks in 1986

• Built the largest LNG peakshaving plant in southeastern US in 1999

Pine Needle, USA

Das Island, UAE

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Recent Experience – Base Load Liquefaction & Export

• Peru LNG • Location: Peru Capacity: 4.45 mtpa

• Scope: EPC Status: In Operation

• Freeport LNG • Location: USA Capacity: 13.2 mtpa (3 trains)

• Scope: EPC Status: In Progress

• Cameron LNG • Location: USA Capacity: 13.5 mtpa (3 trains)

• Scope: EPC Status: In Progress

• Mozambique LNG • Location: MozambiqueCapacity: 12 mtpa (2 trains)

• Scope: FEED Status: In Progress

• Golden Pass LNG • Location: USA Capacity: 15.6 mtpa (3 trains)


• Goldboro LNG • Location: Canada Capacity: 10.0 mtpa (2 trains)


• Rio Grande LNG • Location: USA Capacity: 13.5 mtpa (3trains)


– Scope: Base Load Liquefaction/Export

– Capacity: 4.5 mmtpa

– Date of Completion:

10

What Is Small Scale LNG?

• Onshore Baseload 4.0 – 6.0 mtpa/train

• FLNG 1.0 – 4.0 mtpa

• Small Scale Less than 0.5 mtpa

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Small Scale LNG Applications

• Peak Shaving

– Backup fuel

• Stranded Gas Development

• Satellite Gas Distribution

– Virtual Pipeline

– Off grid communities

– Mine Sites

– Drilling Rigs

– Power Generation

• Transportation

– Marine

– Containerships

– Ferries

– Tugboats

– Heavy Haul

– Trucks

– Locomotives

– Buses

Example of Small Scale LNG - Peak Shaver

PURPOSE: Liquefy NG during “off peak” periods, for

use at later high demand “peak” periods

(backup fuel)

OPERATORS: Pipelines, Electric Utilities, Industrial

Customers (Refineries, Petrochemical,

etc)

PLANT: Memphis Light, Tennessee, USA

FEEDSTOCK: Pipeline Gas

CAPACITY: Liquefaction : 5.5 MMSCFD (0.04 mtpa)

Vaporization: 100 MMSCFD

FACILITY

DESCRIPTION: The plant includes:

Pretreatment

Liquefaction system

LNG Storage - 290,000 barrel (28,000m3)

Sendout and vaporization system

Truck unloading/loading station

Fire protection and all plant ancillary facilities

Small Scale LNG - Peak Shaver

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Typical Block Flow Diagram – Small Scale LNG

METERING PRETREATMENT LIQUEFACTION

STORAGE

SENDOUT

BOILOFF

TAILGAS

COMPRESSOR

FEED GAS

FEED CLEAN GAS LNG

BOILOFFREGEN GAS

LNGVAPORIZED GAS

HEAVIES

REGEN

TAILGAS

SENDOUT

TAILGAS

PEAK SHAVING FACILITY

BLOCK FLOW DIAGRAM

CO2 VENT

NA

TU

RA

L G

AS

PIP

EL

INE


Small Scale LNG

Project Design Considerations

16

Design Considerations

• Major Influences on

Project Economics – CAPEX

– OPEX

– Reliability

– Operability

– Profitability

17

Feedstock

• Pipeline Gas

– Use existing infrastructure

– Closer to users/consumers

– Already some degree of pretreatment

– Specifications may be very broad

• Raw Gas

– Often stranded/remote

– Limited infrastructure

– Farther from users/consumers

– May require more pretreatment

18

LNG Product Specifications

• No Universal LNG Specifications

– Dependent Upon Ultimate Use

• Peak Shavers

– Typically feed gas is pipeline quality

– Regas produces essentially same quality

• Transportation

– Locomotives, heavy haul, buses

– “Typical” spec in USA

• 97% C1

• 1% C2

• 2% N2 (max)

• No HHCs

• No oils, particulates

• Marine

– Constant quality

– High methane number

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Liquefaction Technology Selection

• Single Mixed Refrigeration (SMR)

– Nitrogen, methane, ethylene,

propane, pentane, and others as

required

– Pre-Cooled Option

• Turboexpander Cycles

– Turboexpander Cycle + Precooling

– Dual Expansion Cycles

– Pre-Cooled Dual Expansion Cycles

– Nitrogen

• Proprietary or Open Art

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SMR Expander

Applicability for Small Scale LNG

High Pressure Feed Gas

Flexibility for Feed Gas Composition Changes

Efficiency

Ease of StartUp/Operability

CAPEX

OPEX

Technology Selection – SMR vs Turboexpander

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Pretreatment

• Removal of Contaminants

– CO2

– H2S

– HHCs (C4+, BTEX, etc)

– H2O

– HG

• Process Options

– Amines

– Molecular Sieve

22

Site Selection

• Land Requirements

– Relatively small

– 5 – 15 acres

• Process Area

– Less than 5 acres

• Overall Requirements

Usually Set By

Infrastructure

– Storage

– Flare

– Truck Loading

– Office/Warehouse

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Utilities

• Conversion of Natural Gas to LNG

Requires Significant Energy

• Electric Power

– Grid

– On Site Power Generation

– Key Consumer: Refrigerant Compression

• Fuel Gas

– Key Consumers:

• Pretreatment

• Refrigerant Compressor

• Cooling Medium

– Air

– Seawater

– Freshwater

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LNG Storage Capacity

• Key CAPEX Driver

• Higher capacities will favor

field erected API tanks • Single containment

• Double containment

• Full containment

• Lower capacities will favor

shop fabricated vessels

• Spheres are sometimes an

option, either field erected or

shop fabricated

• Storage volume will be

dependent upon • LNG production

• Reliability of feedstock

• Reliability of utilities

• Logistics of LNG product

distribution

25

Refrigerant Compressor Selection

• Key Decision Parameter Affecting

– CAPEX

– OPEX

• Primary Utility Consumer

– Reliability

– Operability

• Maintenance

• Turndown

• Drivers

– Electric motor

– Gas turbines

– Gas Engines

• Compressors

– Centrifugal

– Reciprocating

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Refrigerant Compressor Selection

• With Electric Motor Drivers

– Approximately 95% - 98% of feed gas

energy content converted to LNG

• With Gas Turbine Drivers

– Approximately 80% - 88% of feed gas

energy content converted to LNG

• Factors Affecting

– Feed gas conditions: composition,

pressure, temperature

– Plant capacity

– Site conditions

– Contaminants

• CO2

• N2

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Standard or Custom Design

• Available in Standard capacities

– 50,000 gpd

– 100,000 gpd

– 200,000 gpd

– 400,000 gpd

– 1,000,000 gpd

• “Industry Standard” Specifications

• Benefits

– Often available for lower costs, since engineering costs have

already been capitalized

– Schedule may be reduced, depending upon overall critical path

• Negatives

– Customer may purchase more plant that he needs

– May not meet local/customer requirements/specifications

– Reduced optionality

– Consideration for local maintenance/service

Degree of Modularization

• Small scale LNG projects

typically modularize well • Small diameter piping

• Small equipment

• Adequate space for

operations/maintenance

• Sizes suitable for road

transport, 25 – 100 mt

• Standardization of designs

• Benefits of Modularization

Include • Improved Safety

• Better Quality

• Shorter Schedules

• Lower Cost

• Reduced Project Risks

• Site Labor

• Weather

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Other Considerations

• Boiloff Gas System

– Fuel

– Tail Gas

• Control & Safety Systems

– Degree of Automation

– Staffing

• Truck Loading

– Number of Spots

– Hours of Operation

• Other Utilities/Offsites

– Flare/Vent System

– Firewater

– Instrument Air/N2

• Buildings

– Administration

– Warehouse

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Other Considerations

• Regulatory Requirements

– Design Codes

– Local Regulations

– Environmental (Air & Water)

• Owner Design Standards (if any)

• Owner Life Cycle Requirements

– Plant Life

– IRR, ROC, Hurdle Rate

• Owner Preference For

– Vendors & Suppliers

– Class of equipment

• Pipeline Contractual Requirements

• Site Specific Issues

– Local Community

– Seismic

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Schedule

• Typical Schedule • 18 – 24 months ARO

• Modular Construction

• Standard Design

• Critical Path • Storage

• Refrigerant Compression

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In Summary

• NG use is expanding worldwide beyond

traditional applications

• Small Scale LNG may be a viable option

for many of these new applications

• Marine

• Heavy Haul Transportation

• Benefits of LNG compared to diesel or

heavy bunker fuel may include

• Lower emissions

• Competitive or lower cost

• Project design considerations, typically

made in early phase of development will

have a significant impact on project

viability & economics

• Development of Small Scale LNG Projects

require close cooperation between Owner

& Plant Designer to arrive at most

optimum solution


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Questions?

CONTACT

Ignacio Bincaz

[email protected]

Office: +1 832 513 1236 Mobile: +1 713 254 7923

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