Developing an Integrated Small & Mid-Sized floating LNG Solution

Andreas Hambücker

• Introduction

• FPSO’s

• LNG Carriers

• LNG FSRU

Content

FLNG Seoul, 2013 2

• TGE Marine Gas Engineering is one of the world’s leading engineering contractors specialising in gas carrier and offshore units.

• The Group was founded in 1980 as “Liquid Gas International” (LGI) and in 1993, was acquired by Tractebel/Suez operating as “Tractebel Gas Engineering”. Since an MBO in 2006, the Group has been called “TGE Marine AG” (“TGE Marine Gas Engineering GmbH”).

• Major shareholders: 49.9% Caledonia Investment plc and GASFIN Group approx. 47.4%, management, employees, individual shareholders approx. 2.7%

• Address: Mildred-Scheel-Str. 1, 53175 Bonn, Germany

• Web: www.tge-marine.com

Company Introduction

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Key facts

• 30 years of experience

• More than 150 gas carrier contracts

• Delivery of several novel and innovative gas plant solutions:

• Five 22,000 m³ ethylene carriers, largest purpose-built ethylene ship in the world built at Jiangnan Shipyard

• Topsides for 95,000 m³ LPG-FSO built at Samsung

• World’s first combined 7,500 m³ LNG/ethylene carrier built at Remontova for the Anthony Veder Group

• Lloyd’s List Ship of the Year Award in 2008 for 8,000 m³ ethylene carrier “Isabella Kosan” built at Sekwang HI

for the Lauritzen Kosan Group

• World’s first 16,000 m3 LNG-FLSRU under construction at Wison Offshore & Marine Ltd. for Exmar Group

• Well established in East Asia with Shanghai branch office since 1994

• Delivery or fabrication of more than 200 cargo tanks

• More than 50%* market share for ethylene carrier gas plants (*historically by total, >60% market share from 2002 to

present)

• Own patented LNG tank support design for shuttle tankers and floating units

• In-house ship design packages available for a wide range of gas carriers

Key TGE Marine facts

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Business activities and expertise

Cargo handling systems and tanks for gas carriers

• LPG carriers, CO2 carriers

• Ethylene carriers

• LNG carriers

Cargo handling systems for offshore units

• FSO/FPSO for LPG

• FSRU and FPSO for LNG

• CO2 liquefaction, storage and offloading units

Fuel gas systems

• LNG fuel supply for merchant vessels

• Type C LNG tanks

• Gas processing system

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LNG as fuel for small power plants on islands and remote locations

• Potential locations: Caribbean islands, Indonesian islands, Mediterranean islands, Philippines etc.

• Environmental pressure to implement “clean fuel” instead of HFO/MDO or even coal

• Potential de-coupling of LNG from oil price link and consequently reduced fuel cost compared to MDO

• Tailor-made small-scale LNG supply chain will reduce CAPEX compared to traditional on-shore solutions

FLNG (“Floating LNG”)

• Improved process technology for LNG-FPSO (“Floating production storage & offloading”) have strongly improved the CAPEX requirements for capacities of 0,5 to 1,5 mtpa with project budgets of 600 – 1,000 USD/t of annual liquefaction capacity

• LNG-FPSOs and FSRUs (“Floating storage & regasification units”) can be fabricated in modern shipyards within 18 to 36 months depending on complexity and consequently, be faster implemented than on-shore solutions

LNG as fuel for merchant vessels

• In 2015 MARPOL Annex VI revision will force owners operating in environmental control areas (ECA,SECA: North Sea/Baltic Sea) to use either expensive MGO, switch to LNG as fuel or implement scrubber technology

• “Chicken and egg” situation is slowly resolving as the first projects implemented and the interest of larger LNG owner in the bunker market becomes noticeable

Small-scale LNG chain market drivers

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LNG supply chain

Reservoir Liquefaction Shipping Regasification Markets

• Global LNG supply chain

• Large scale LNG liquefaction plants

• Onshore/Offshore

• Small scale LNG production

• Pipeline gas, e.g. Norway

• Stranded Gas

• Onshore/Offshore

• Re-export from Import/Re-gas terminals

• More and more import terminal apply

for re-export licences

19-May-2010 „Coral Methane“ loading at Zeebrugge, first loading of a small carrier at a large importterminal.

• Introduction

• FPSO’s

• LNG Carriers

• LNG FSRU

Content

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Key references: LNG-FPSO

16,000 m3 LNG-FLSRU:(under construction)

• Owner: Exmar Group, Belgium

• Yard: Wison Offshore & Marine Ltd,

China

• Classification: BV

• Completion: 2015 (under construction)

• Scope: Complete gas handling system for loading and unloading, cargo tanks

• Process liquefaction package: Contracted to Black & Veatch by Wison

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95,000 m³ LPG FSO “Liberdade”:

• Owner: Conoco Philips

• Yard: Samsung HI, Korea

• Classification: Lloyd’s Register

• Completion: 2003

• Scope: Complete gas handling system

FPSO – technical concept

Small Scale FPSO: 0.5 mtpa

• 40,000 m³ storage capacity• 4 cylindrical storage tanks• L x B x D: 145 x 43 x 24 m

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FPSO – technical concept

Conceptual Design for 0.5 mtpa FPSO (40.000 m³ storage)

1 LNG FPSO designed to receive gas direct from the well via mooring turret.

2. FPSO provides gas conditioning, processing, pressurisation and liquefaction modules.Space included for future modification when moved to new field

3. Liquefaction plant to use proven MRC process to liquefy 0.5 mtpa

4. Gas lost: 9% (utilities: 4 – 5 MW)

5. Storage in cost competitive, IMO Type Ccylindrical storage tanks

6. Offloading via fixed loading arms, or tandem hose

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Topsides for FPSO

Selection of processes and equipment

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AGRU Dehy‐dration

Lique‐faction

StorageTanks

Feed gas Compress

ion

Sepa‐rator

Capacity up to 1,5 mtpa

Process Selection is influenced by various factors:- Gas Composition- Ambient Conditions- Location of the plant- Maritime conditions- Machinery availability- Operational Aspects- Commercial and trade aspects

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Topsides for FPSO

Inlet / Gas Pre-treatment

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AGRU Dehy‐dration

Lique‐faction

StorageTanks

Feed gas Compress

ion

Sepa‐rator

Slug catcher for removal of dust, solid particles, hydrate inhibitor etc.

Feedgas compression may be required if supply pressure is too low

Acid Gas Removal Unit – Amine Units

Mercury Removal bed if required

Dehydration of gas by Molesieves / TEG Units

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Topsides for FPSO

Liquefaction

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AGRU Dehy‐dration

Lique‐faction

StorageTanks

Feed gas Compress

ion

Sepa‐rator

Range of use: Small scale 1-15 t/h LNGA pure refrigerant (typically nitrogen) is deep-cooled by expansion to condense the natural gas to LNG based on the Reverse Brayton / Claude Cycle.Low efficiency compared with other processes. Specific power consumption about 0,55 kWh/kg for dual expander systemLess sensitive to feed gas changes.Easier to operate than the MR Cycle.

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Topsides for FPSO

Liquefaction

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AGRU Dehy‐dration

Lique‐faction

StorageTanks

Feed gas Compress

ion

Sepa‐rator

Range of use: 10 – 50 t/h LNGA single multi-componentrefrigerant is used comprising typicallynitrogen, methane, ethylene and butane.Several modifications exsist.High efficiency compared with expander process. Specific power consumption about 0,31 kWh/kgSensitive to feed gas changes.Operation complicated

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Topsides for FPSO

Liquefaction

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AGRU Dehy‐dration

Lique‐faction

StorageTanks

Feed gas Compress

ion

Sepa‐rator

Range of use: up to 2,5 t/h LNGCascade systems have been developed in house for LNG carriers to use synergy effect with ethylene reliquefaction Systems, or Laby-GI compressors for ME-GI applicationsProven ComponentsReliable operation

Tank Design

Tank Design

• (internal insulation tanks)• (Integral tanks)• (Semi-membrane tanks)• Membrane tanks

• Independent tanks

• (Type A)• Type B• Type C

Type C tanks• Self supporting pressure vessel• Cylindrical or bilobe with outside

insulation• No secondary barrier required• No restriction concerning partial

filling• Tank design temperature -163°C

• Tank material

• (Aluminium)• 9% Ni-steel• SS AISI 304L

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Typical containment systems for LNG

• Double row re-inforcedmembrane type tanks haveonly recently beendeveloped

• spherical tanks generateenormous problems toplace a process plant andare limited to very fewfabricators

• IHI type B tanks are limited to license with very fewyards

• Design constraints for LNG compared to Ethylene:• Higher material shrinkage due to:

• Larger delta T during cooling down• Higher material shrinkage factor for AISI 304L

• Problem especially for bi-lobe tanks:for 15 m diameter tanks the shrinkage is 35 mm (304L)

• Detailed design review and complete re-design of supports necessary (displacement and stress analysis, temperature profiles)!

• Design appraisal by a classification society• FEM analysis of tank shell, supports and shipside steel structure

for different loading casesPatented design for type LNG tank supports

Type C tanks for LNG carriers and floaters

• Tank insulation• Same insulation type applied as for LPG or ethylene carriers

• LPG/LEG carriers: polystyrene slabs up to 240 mm: k-value 0.186 W/m²K

• Increase of insulation thickness to 360 mm: k-value 0.121 • Improvement of insulation with combined polystyrene/polyurethane slabs (300 mm): k-value 0.121 • Modification of design details of the insulation due to:

• shrinkage • stress

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• Introduction

• FPSO’s

• LNG Carriers

• LNG FSRU

Content

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Key references: LNG Carriers

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7,500 m3 LNG/LEG carrier: • Owner: Anthony Veder, Holland• Yard: Remontova, Poland• Classification: BV• Completion: 2009• Cylindrial type C tanks• Dual fuel, diesel/gas electric drive

15,600 m3 LNG carrier:• Owner: Anthony Veder, Holland• Yard: Meyer-Werft, Germany• Classification: BV• Completion: 2012• Bilobe tanks• Duel fuel, direct drive

Key references: LNG-carriers (under construction)

30,000 m3 LNG-carrier:

• Owner: CNOOC, China

• Yard: Jiangnan Shipyard, China

• Classification: CCS, ABS

• Completion: 2015 (under construction)

• Scope: Complete gas handling system, cargo tank design and material package

28,000 m3 LNG-carrier:• Owner: Dalian INTEH Group, China

• Yard: COSCO Dalian

• Classification: CCS

• Completion: 2015 (under construction)

• Scope: Complete gas handling system, cargo tank design and material package

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Gas Plant Design

• Objective: minimize the CAPEX• Utilize the know-how from design of Ethylene carriers• Main questions:

• Cargo tank arrangement• Terminal Compatibility• Boil-off gas handling / propulsion system

– Fuel Gas Systems

• Multi cargo vessel• Equipment sizing

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Cargo Tank Arrangement• Ship capacity < 20,000 m³

• Cylindrical tank design• 2 tank design up to

abt. 12,000 m³• 3 tank design up to

abt. 20,000 m³• Ship capacity > 20,000 m³

• Bilobe tank design• 3 tank design up to

25,000 m³• 4 tank design up to

45,000 m³

Artist impression from SLNG presss release Aug. 2011

- Singapore, Zeebrugge and Gate have confirmed their intentions to built small jetties -

Terminal Compatibility

Coral Methane loading in Zeebrugge

• Manifold position Elevated Manifold

• Manifold sizing

• Loads on manifold flanges/piping

• Mooring arrangement

• Fenders – parallel body length

• ESD ship shore connection

• CTS – custody transfer

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Cargo Handling System 15,600 cbm LNG carrier

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BOG Handling – Multi Cargo Vessels

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0,5

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1,5

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3,5

4

0 10 20 30 40 50 60

Sailing Time [days]

Pres

sure

[bar

g]

Basic LNG Composition N2:2%CO2:0%C1:89%C2:5,5%C3:2,5%C4:1%

Tank Volume: 30.000 m³Insulation: 300 mm

PolystyreneInitial pressure: 140 mbar g

9% Ni

SS 304L

• Pressure increase+ Ease of operation- Limited sailing time

• BOG consumption as fuel• Diesel/gas electric• Direct drive

• BOG reliquefaction- High capex- Sophisticated operation- High maintenance cost+ high trading flexibility

• Gas combustion unit (GCU)+ ease of operation- Loss of cargo

BOG Handling Multi cargo / Equipment

• Multi cargo vessels have been designed and are available• Qualification of new vendors and technologies for LNG, e.g.

• Deepwell pumps• Valves• Standard ‘ethylene’ compressors as LNG fuel gas compressors

• Optimization of Capex with a market specific approach to upgrade the technology of ethylene carriers to LNG instead of downsizing full size LNG carriers to small scale LNG

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26Gastech, London 2012

Fuel Gas Systems

• Diesel electric Direct Drive• Two stroke Four Stroke

– Supply pressure– BOG handling

• Dual Fuel Single fuel• Burning of BOG, Forced vaporization• Separation of fuel Tanks• BOG Compressors, Fuel gas compressors, Transfer Compressors• LNG Compositions• Dynamic behaviour of fuel gas system• Buffer capacities

Mid Scale LNG carrier Designs: 30,000 cbm LNG carrier with bilobe tanks

• Principal particulars:• Length o. a. 184.60 m• Length b. p. 175.20 m• Breadth moulded 27.60 m• Depth moulded 18.50 m

• Tanks• Tank 1 conical bilobe• Tank 2-4 bilobe

• Draught/Deadweight:• Design Draught 8.80 m• Corresponding deadweight 17,600 T

• Speed/Endurance:• Service speed at design draft 16.00 kn• Endurance 12,000 nm

• Machinery• Dual fuel engine 9000 kWe

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• Introduction

• FPSO’s

• LNG Carriers

• LNG FSRU’s

Content

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LNG FSRU‘s (a case study)

Project example: 2 x 25,000 m³ FSRU for Caribbean islands

• Highly polluting and/or expensive fossil fuels (heavy fuel oil, diesel oil) are nowadays used for power production at isolated power stations, e. g. on islands

• Natural gas is a much cleaner and cost efficient alternative

• Less CO2

• Less NOx

• No SOx

• No particulates

• Isolated power stations are not connected to NG pipeline grids

• The existing LNG infrastructure (ships, terminals) is designed for much larger volumes than needed for these consumers

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Fellow group company Gasfin Development SAis currently developing an LNG infrastructureproject together with EDF (Electricité deFrance) for their power generation facilities inMartinique and Guadeloupe.

• Key technology for Caribbean project:TGE Marine’s design concepts for small to mid-scale LNG imports

• Press release Jan 2011: FEED and permitting are progressing

• Existing HFO powered engines will switch to LNG

• LNG import approx. 400,000 tpa in total (both islands)

About Gasfin Development SA:• Offer LNG delivery service utilizing custom

built small to mid-scale infrastructure • Key technology partner: TGE Marine• Majority shareholder Gasfin Group is also a

significant shareholder of TGE Marine

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• Each island: One purpose built FSRU of 25,000 m³ storage

• FSRUs moored in vicinity of power plants with short subsea pipeline to shore

• LNG supply from regional terminals by a purpose built LNG carrier

• Size of shuttle tanker: Min. 20,000 m³ (and backup option)

• TGE Marine performs the FEED for the shuttle tankers and the FSRUs (hull, marine and cargo systems); mooring studies, subsea systems, etc. subcontracted to others

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Technical concept – FSRU

• Send out to subsea pipeline via flexible risers

• Regasification using air vaporizers (no environmental impact)

• Electricity generated with natural gas fuelled gensets

• 20+ year docking interval, designed to remain on site during severe weather conditions

• Tank design (pressure vessels) increases operational flexibility

• High redundancy with minimal maintenance

• Length: 106m; width: 39m;depth: 20m; draft 7m

• Send out: max. 50t/h, normal 25t/h @ 14 bar (battery limit)

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Technical concept – mooring and berthing

• The FSRU will be permanently moored on site for the project life using a spread mooring system with drag embedment anchors

• The system is designed to withstand 100 year return hurricane conditions

• The LNGC will berth next to the FSRU in a side by side modus using (conventional) hard arms

• Berthing aid systems, quick release mooring hooks and fenders used will be similar to those used at onshore receiving terminals

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Technical concept – FSRU process

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Conclusion

• TGE has developed cost efficient and fit for purpose solutions throughout the complete small to mid scale LNG chain.

• The first LNG FSLRU is under construction

• A number of small to mid-scale LNG carrier have recently been delivered or are under construction.

• Small scale projects can be developed as complete individual chain or with and interface on the production of supply side to the world scale LNG trade

• Several small scale LNG projects planned and close to FID’s

• LNG as fuel will be a further driver for this market

• Small and mid scale LNG is a future market and which has already started and is steadily increasing.

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For further information please email:

sales@tge-marine.com

www.tge-marine.com

Thank you for your attention