value chain integration - the future for lng
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Value Chain Integration - The Future for LNG?An AVEVA White Paper
Stéphane Neuveglise
Product Marketing Manager – AVEVA MarineAVEVA Solutions Ltd
Published March 2010
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Value Chain Integration - The Future for LNG? - an AVEVA White Paper
Page 3
Summary
1. Introduction
2. The LNG Opportunity
3. The FLNG Challenge
4. What If?
5. What With?
6. Tanker Conversions
7. Handover and Commissioning
8. Integrated FLNG - The Future
9. Conclusion
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Contents
This article has been adapted from a paper given at the International Conference on Computer Applications in Shipbuilding (ICCAS 2009), in
September 2009, organised by the Royal Institution of Naval Architects
(RINA). It is reproduced with the permission of RINA.
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Summary
FPSO use within the oil & gas industry is well established and trends
indicate strong growth in the development of similar vessels for
recovering and liquefying natural gas. However, the increased
complexity of floating LNG assets demand more efficient project
execution techniques if such challenging projects are to meet cost
and time budgets.
This paper describes how current technologies, forming an
integrated design environment for all major components, can be
employed to maximise project eff iciency.
The use of such an integrated environment enables closely
collaborative working between the principal engineering
disciplines. This eliminates many sources of potentially costly
design integration and interface errors, reducing rework, costs and
construction times.
Value Chain Integration - The Future for LNG? - an AVEVA White Paper
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‘...an integrated environment enablesclosely collaborative working betweenthe principal engineering disciplines.
This eliminates many sources of
potentially costly design integrationand interface errors, reducing rework,
costs and construction times...’
Photograph courtesy of Kawasaki Shipbuilding Corporation.
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1. Introduction
The increase in large-scale, multinational offshore oil & gas projects
in the last decade, and the industry’s continuing struggle to
complete these projects on time and within budget, have served to
highlight the challenges engineering faces in meeting the world’s
increasing energy demand.
As attention focuses on the potential of Liquefied Natural Gas (LNG)
to support this growth, the offshore industry is looking for ways to
improve project execution throughout its value chain.
Fully integrating the engineering IT across all partners in an
offshore project not only offers considerable scope for achieving
this, it is now achievable with proven, off-the-shelf technology.
You just have to join the dots...
2. The LNG Opportunity
Until recently, natural gas has been essentially a regional fuel, due
to the costs of pipeline delivery over long distances. With more
limited options for oil discoveries, companies have turned their
attention to developing gas fields hitherto stranded, either in deep
water or in littoral areas where overland delivery is not economic.
The large number of such gas fields of varying size provides a large
potential resource, but many cannot be developed using
conventional LNG methods due to their insufficient size and/or
their distance from potential sites for onshore liquefaction.
There is also additional potential from offshore oil fields where any
associated gas is currently either reinjected, flared, or treated as a
cost. There is, therefore, a huge potential for easily deployable
floating liquefaction units.
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‘As attention focuses on the potential of Liquefied Natural Gas (LNG) to supportthis growth, the offshore industry is looking for ways to improve project executionthroughout its value chain. Fully integrating the engineering IT across all partners
in an offshore project not only offers considerable scope for achieving this, it isnow achievable with proven, off-the-shelf technology...’
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3. The FLNG Challenge
Gas needs to be liquefied as soon as it is drawn from the reservoir.
An offshore liquefaction facility is a complex and sophisticated
process plant mounted on some form of floating platform or vessel.
As immediate transfer by pipeline is not possible, this necessitates
local storage and offloading into purpose-built LNG tankers. In
deep water, oil extraction uses FPSOs; the same constraints demand
an equivalent solution for gas – the LNG FPSO or Floating LNG
(FLNG).
Tankers are designed and built by shipbuilders, and gas liquefaction
plants by process engineering companies. This immediately brings
massive engineering challenges. Commonly, each element of an
FPSO – hull, topsides and mooring system – is designed and
constructed by different contractors, each with their own particular
expertise and, more often than not, using different engineering IT
systems.
Each of these contractors faces their own problems of managing and
sharing engineering information between often geographically
dispersed teams of designers, suppliers, subcontractors and
construction sites. To these elements must now be added cryogenic
storage tanks – another specialist engineering task. And, to further
compound the difficulties, contracts for the various engineering
activities must often be placed while the scope of work is no morethan 10–15% completed, a common cause of project delays or cost
overruns.
With such technical and organisational complexity, a project of this
sort can resemble a modern-day Tower of Babel as the different
disciplines struggle to collaborate across time zones and technology
boundaries. A large project may have more than 75,000 engineering
interfaces, covering:
• structural
• piping and process
• electrical and instrumentation
• control
• safety
• documentation
• mooring systems.
The difficulties of integration are directly related to how accurately
these interfaces have been def ined. Unless all the integration
interfaces have been precisely engineered, the difficulties in
bringing all these elements together will invariably give rise to
design conflicts and costly rework. The preparedness and accuracy
of its design interfaces can make or break a project.
Value Chain Integration - The Future for LNG? - an AVEVA White Paper
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A ship, a mooring buoy and a process plant. Integrating such complex projects efficiently is the challenge facing the offshore oil & gas industry.(Photo courtesy SBM Of fshore).
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4. What If?
Focusing on their individual work scopes and schedules, contractors
normally coordinate their own interf ace management issues well,
and have little diff iculty in managing collaborative design on their
particular part of the project. Problems arise with cross-function
issues, cutting across multiple delivery teams and not sufficiently
visible either to the parties concerned or to programme
management.
What if the entire design could be handled within one fully-
integrated system bringing together all partners and stakeholders,
whatever their location, but respecting their contractual
boundaries?
What if approved design changes to the hull could be automatically
and immediately made visible to the topsides, mooring and tank
designers?
What if all the integration areas could be handled seamlessly in a
single design system so that changes in one are visible across all,
and inconsistencies at the integration levels checked automatically?
Going one step further, what if the Owner Operator of an FLNG
facility could have online access to the entire evolving design
throughout the project and seamless, progressive handover of all
the documentation as it became available?
The good news is that such a situation is no longer an aspiration – it
is achievable now. Using off-the-shelf technology, major oil & gas
companies are already working in this way and gaining measurable
cost, risk and timescale reductions on major projects.
Extending this scope to the entire LNG value chain is now within
reach, thanks to AVEVA’s pioneering integration of the engineering
IT solutions for process plant and shipbuilding.
5. What With?
Over the last few years, AVEVA Solutions has integrated best-in-
class plant and marine engineering IT onto a single design
platform, able to handle integrated hull and topsides design.
Plant engineers will be well aware of the established capabilities of
the AVEVA Plant applications, most particularly AVEVA PDMS, while
shipbuilders know AVEVA Marine, a comprehensive solution set
developed from Tribon. PDMS has already been used to create more
than 80% of the largest production platforms in the Gulf of Mexico
and the North Sea, while AVEVA Marine is used by 85% of the world’s
50 largest shipyards.
FPSOs have already been created using these two technologies but
the process previously required a degree of ‘hand knitting’. Today,
this limitation has disappeared and all disciplines can work on the
most complex FPSO project within a common IT environment.
Limitations on project scale and organisation have also virtually
disappeared thanks to the ability of all the participants to
collaborate using products such as AVEVA Global, which can
seamlessly handle parallel, multi-site working.
Before considering the potential for future developments, let’s first
look at some examples of where this technology is already being
used.
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With AVEVA PDMS and AVEVA Outfitting able to share data, integrating complexprocess plant into a vessel becomes a manageable, designer-to-designer process,with access to all the usual productivity functions, such as clash management.
‘...PDMS has already been used tocreate more than 80% of the largest
production platforms in the Gulf of Mexico and the North Sea, while
AVEVA Marine is used by 85% of theworld’s 50 largest shipyards...’
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6. Tanker Conversions
For any floating processing plant, integrating the different
components requires accurate as-designed and as-built
information.
For conversions of existing tankers, it is likely that neither an
existing 3D model nor accurate as-built 2D drawings will be
available. The as-built information therefore has to be obtained by
surveying the vessel. This is readily achieved with precision laser
scanning of the existing structure, to create 3D laser models which
can be seamlessly imported into AVEVA PDMS or AVEVA Outfitting.
Once imported, these as-built models can be used just like any other
3D elements, allowing new design to be created to fit accurately,
clash detection to be carried out, and the information to be shared
between project participants.
Once integrated with PDMS and Outfitting, as-built data can be
handled by other AVEVA tools, such as AVEVA Global for
collaborative multi-site working, or AVEVA Clash Manager for better
design quality.
This use of laser models is well established in the oil & gas industry,
but less so in shipbuilding, which has less frequent demand for
engineering modification of its products. The key to increasing its
adoption is simply to raise awareness among shipyards.
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‘For conversions of existing tankers,it is likely that neither an existing3D model nor accurate as-built 2Ddrawings will be available. The as-builtinformation therefore has to beobtained by surveying the vessel. Thisis readily achieved with precision laser scanning of the existing structure, to
create 3D laser models which can beseamlessly imported into AVEVA PDMSor AVEVA Outfitting...’
High-resolution, phase-based 3D laser scans like this, integrated with AVEVA 3D design tools, enables the eff icientconversion of even the most complex floating assets. Image courtesy AMEC.
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7. Handover and Commissioning
Handover between EPC (or shipyard) and Owner Operator has long
been – almost literally – an ‘over-the- wall’ event. But the costs and
risks of this have risen as the rising price of oil demands earlier
revenue generation. Commissioning has therefore been squeezed
between the economic pressures to make it shorter and more
efficient, and the increasing amount of work created by increasing
project scale and more onerous regulatory requirements.
To overcome this, current best practice is to make handover and
commissioning an extended, parallel activity which begins while the
project is at an early stage of development. To take this to its full
potential requires effective collaboration between the two parties.
Both must be able to share information as it is generated. An
obvious example is the creation of operations and maintenance
procedures. If operations specialists can view the design as it
evolves, they can begin preparing procedures well in advance. They
can test their procedures on the 3D model and feed back
suggestions for ways to make the design more ‘operations friendly’.
The main barrier to such close collaboration has been the difficulty
of sharing the many different types of information involved, but
this barrier, too, is disappearing thanks to new ‘data agnostic’
information management technologies such as AVEVA NET.
AVEVA NET is a powerful solution for the workflow and lifecycleinformation management requirements of complex engineering
projects, from FEED, right through detailed design, construction,
commissioning, hook-up and throughout their entire operational
lives. AVEVA NET provides complete control and global visibility of
all project information, regardless of type or source. 3D models, 2D
schematics, procedures, schedules or vendor documents can all be
made accessible via the Internet through a single intuitive portal
application.
Now operations specialists in, say, maintenance, can view an
evolving design in 3D, without needing the skills or CAD tools of the
designers. They can review a vendor’s equipment maintenance
procedures, and work with the designers to ensure correct
accessibility is provided. Similarly, operational procedures such as
start-up, shutdown, shift changeover or evacuation can be drafted
early and refined progressively as the design evolves.
This level of practical, multi-discipline collaboration offers huge
potential for accelerating the Commissioning and Operational
Readiness phases of a project. Handover can become a progressive
activity and the project’s entire information asset passed seamlessly
into operations management to support lifecycle requirements such
as status monitoring, compliance reporting, Management of Change
control, and so on.
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AVEVA NET is a neutral, standards-compliant information management platform for the storage, sharing, cross-referencing, management and exploitation of every type
of asset information, from 3D models to vendor documents.
A leading oil & gas company found that effective information management brings measurable economicbenefits through earlier and more complete definition of engineering information. This enables more rapid
ramp-up to full capacity and reduced costs of asset ownership.
‘AVEVA NET provides completecontrol and global visibility of
all project information,regardless of type or source.3D models, 2D schematics,procedures, schedules or
vendor documents can all bemade accessible via theInternet through a singleintuitive portal application...’
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8. Integrated FLNG - The Future
To meet the challenges and oppor tunities that FLNG presents,
integrating the engineering IT environment throughout the value
chain can bring considerable benefits in reducing the time and
costs of bringing gas to market, and in increasing the flexibility to
respond to changes in sources, demand and geopolitical
circumstances.
Not so long ago, standardising on, say, a single CAD platform could
be a hostage to fortune as technology raced ahead and made the
chosen platform obsolete. But thanks to the development of
neutral, standards-compliant information management, far from
being a straitjacket, a well-chosen and well-implemented IT
environment is a liberating asset in much the same way that a
common language enables global businesses to work as single
entities.
Consider a few practical possibilities. Cryogenic storage tanks may
become standardised modules for use both on- and offshore.
Liquefaction and gasification plants can reuse modular designs.
LNG FPSOs can be created as single, integrated projects and
eff iciently replicated as sister vessels. Asset management can be
extended across fleets of standardised vessels and plants.
Regulatory compliance reporting can be standardised and updated
across the entire value chain. Best practice information can be
shared easily and kept available for reuse.
9. Conclusion
Huge future demand for energy means huge demand for FLNG;
translating that demand into the complex reality of FLNG ships
needs to be done in the most efficient and cost-effective manner
possible.
By utilising the latest advances in engineering software it is now
possible to design all the major components of an FLNG vessel in
one design environment, wherever the project teams may be
located, bringing huge benefits in helping to eliminate interface
errors and their resulting rework costs and delays.
The ability also to progressively commission the vessel by providing
early access to design and related information has already produced
huge benefits in reduced commissioning time and costs.
Value Chain Integration - The Future for LNG? - an AVEVA White Paper
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Is this the future? Large-scale offshore LNG recovery is now a practical proposition.
‘By utilising the latest advances inengineering software it is now possibleto design all the major components of an FLNG vessel in one designenvironment, wherever the project
teams may be located...’
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