FLNG from front-end studies up to smooth execution Dominique... · FLNG from front-end studies up...

FLNG from front-end studies up to smooth execution

Dominique GADELLE Vice President Upstream / LNG Technip FranceParis, March 11th, 2015

1

Table of contents

I. The (F)LNG Industry

II. Why go offshore ?

III. The challenges

Engineering

Procurement

Project management

IV. Ongoing open sea FLNG projects

V. Conclusion

2

I. The (F)LNG Industry

33

Sources: EIA, BP Energy Outlook 2030, January 2013

Natural Gas: A good combination of compromises

Worldwide use of primary energy

Gas demand will witness a surge in demand by 2030

Industry and power generation are the main gas markets

0

100

200

300

400

500

600

700

800

2010 2020 2030

Qu

ad

rillio

n o

f B

tu

World energy consumption

23%25% 27%

+40%

50

100

150

200

250

300

350

400

450

500

2010 2020 2030

Billio

ns o

f cu

bic

feet

per

day

Gas demand

+50%

Gas share in

worldwide

energy demand

4

Sources: BP Energy Outlook 2035, January 2014

Natural gas demand continues its steady growth

Gas demand to grow 1.9% p.a. 2012-2035

Industry and power generation remain the main gas markets although transportation sector is growing fast

5

Long term natural gas and LNG trade

0

500

1000

1500

2000

2500

3000

3500

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 '00 '02 '04 '06 '08 '10 '12

Bil

lio

n c

m/y

(B

CM

)

NG consumption - 3350 BCM

(1990 to 2012, 2.8%/y)

NG international trade - 1022 BCM

(1990 to 2012, +5.6%/y)

LNG trade - 313 BCM

(1990 to 2012 +6.9%/y)

Source : Cedigaz/BP

6

236.9 million tons of LNG traded

41% supplied from the Middle East

Qatar: 77 MTPA, 1/3 of the global market

75% of global LNG demand came from Asia

End 2013

86 liquefaction trains in operation in 17 countries

Total production capacity: 286 MTPA (utilization 83%)

LNG industry key figures end 2013

Sources: GII GNL 2013

7

17%

27%

5%

3%

5%

4%

8%

15%4%

13%

17%

3%

2%

5%

32%

40%

Mismatch between gas reserves and demand

1 Simplified trade movements

% of gas consumption by region from 2013 BP energy outlook 2030

% of proved gas reserves by region, including unconventional gas from CEDIGAZ 2012 edition

Major gas trade movements LNG1

Major gas trade movements pipeline1

9

LNG: 60% of international gas trade growth

Transportation distance

LNG

Cost

Pipeline cost: function of distance

LNG cost: concentrated at the terminals, low marginal cost per kilometer

Sources: Cedigaz

10

11

II. Why go offshore ?

11

Why FLNG ?

No immediate delivery infrastructure nor local market

Insufficient reserves for dedicated onshore LNG plant

Technical difficulties for deeper and further offshore reserves

Difficulty in landing gas onshore

Enable oil fields development

Monetize associated gas rather than re-injection or flaring

Stand-alone gas fields

opportunities

Associated gas

disposal opportunities

Increasing gas demand in Asia

Cost optimization in areas with high construction costs

Deeper and further offshore reserves

Pipeline too complicated or too long

Economics

Environment

Potential redeployment

Sustainable

development

Floating LNG offers the best CAPEX for large lean gas fields or

stranded gas fields

12

Upstream

Pipelines

Onshore treatment &

liquefaction

Transport

Regasification

Distribution

FLNG is a game changer for the LNG industry

The LNG

supply chain

FLNG: Upstream + offshore

treatment, liquefaction &

offloading on transport

13

III. The challenges

14

Engineering

Procurement

Project management

14

From onshore to offshore

Onshore LNG

FLNG

Volume and weight optimization is the key to move offshore. It is a challenge for Space & organization

Motion management

Weight control & center of gravity management

Safety

15

0.00330.165

0.495

5.0

7.8

micro mini mid large maximum construit

MTPA

Qatargas LNG

Trains

largest ever built

Hanas LNG plant QatarGas LNG trains 4 & 5

Onshore liquefaction plant capacity

16

0

1

2

3

4

5

6

7

8

9

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Yemen

Qatar mega

Trains

MTPA

Historical trend of (F)LNG plants

Onshore LNG plant

Offshore LNG plant

Petronas FLNG1

Yamal

Prelude

Capacity range of FLNG projects under study or

execution

Comparison onshore LNG & FLNG plants capacity

17

Layout comparison: onshore LNG plant vs FLNG

Prelude FLNG:

production 3.6 MTPA LNG

488 x 74 = 3.61 Ha

1 Ha/MTPA GNL

Yemen LNG:

production 6.7 MTPA LNG

47 Ha

7 Ha/MTPA GNL

18

An FLNG is built on industrial experienceNatural gas liquefaction Subsea field development Large FPSOs

and innovation in open sea LNG transfer

19

Subsea design and installation is part of an FLNG project

Products

Flexible pipe

Umbilicals

Rigid pipelines

Services

Inspection,

repair & maintenance

Flexible / rigid pipelaying

Deep water installation

& construction

Architecture

2020

FLNG the main challenges

LNG tank sloshing over 25 years without dry docking

Offloading LNG between two vessels in the open sea

Importing large quantities of HP feed gas through a swivel

Equipment and piping loads due to motion

Maintenance

Marine environment (salt, humidity)

Marinization of gas processing facilities

Compact designs

Designing for motion

Feed gas - sulphur free; high methane content preferred

Safety - escalation, cryogenic spill management

Local content

Synergy with domestic gas schemes (except for LPG)

Logistics / accommodation

Insurance - storms, piracy

Expansion capacity

Marine/

mechanical

Process/

Safety

Non technical

Engineering Procurement

Project management

Other more critical challenges can only be discovered at detailed design

& fabrication stages21

Large FPSO experience is useful for FLNG

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Akpo FPSO, Nigeria, 320 x 60m

FPSOs installed, by topsides weight, 1977 to 2013

Sources: Infield Systems Database

Girassol FPSO, Total

Dalia FPSO, Total

Akpo FPSO, Total

P-58 & P-62 FPSOs,

Petrobras

FLNGs topsides

weight forecasts

Largest size and weight FPSOs


Project management

To

psid

es

weig

ht,

in

to

nn

es

22

FLNGs use FPSOs construction strategy

Modularization expertise Akpo FPSO


Project management

23

but there are still differences to take into account


Project management

Piping & Layout

Equipment size

Large-bore

Heavy walls

Special grade piping unknown in the shipbuilding / offshore industry

Constructability

Detailed design to be adapted for pancake / flip-over construction method

Access to the deck during integration

Turret Mooring System integration

Long distance to walk for the workers

24

Field

facilities

Liquefaction

Methane

rich gas

Refrigerant

LNG

Pipeline

ReceptionFuel gas

(8 - 12% of

feedstock)

LNG Train

Methane

20C, 50 bars

-162C, 1 bar

Ethane, Propane, Butane, Pentane

Sulphur

Pipeline

reception

Acid gas

removal

DehydrationMercury

removal

NGL

recovery

Sulphur

recovery

LNG storage

loading

N2 rejection

Liquefaction

Refrigeration

loop

Fractionation

Power plant

Cooling water

Fire fighting systems

Nitrogen generation

Flare

Water treatment

Utility production for the plant

Condensate

stabilisation

Condensate

storage

LPG storage


Project managementFrom wells to LNG, a complex process

CO2 purification

and reinjection

MEG / Water

Not present offshore

Can be foreseen

25

What are the key parameters or technologies ?

26

Optimized scheme selection methodology

LNG rate

CO2 content

LPG

extraction

Heating

media

Refrigerant

drivers

Liquefaction

technology

Cooling

media

Efficiency of

liquefaction

Power

demand

Fuel gas

demand

FLNG auto-

consumption


Project management

26

Leading liquefaction processes

Expander process - Nitrogen based cycles

Pros

Safety (Inert gas refrigerant)

Less sensitive to motion (all gas)

No HC refrigerant storage

Cons

Very low efficiency of liquefaction

Large number of equipment

High deck area per unit of capacity

Proven in air separation industry

Used for re-liquefaction of boil-off gas

onboard QMax & QFlex LNG carriers

References in liquefaction Train capacity circa 1 MTPA


Project management

Courtesy of Air Products

27

DMR : Dual Mixed Refrigerant

Pros

High efficiency of liquefaction

Small layout area of the precooling

exchanger (vs C3-MR)

Balance of power between the two

refrigeration cycles

Simplification for compactness

Cons

Amount of liquid HC (safety)

Refrigerant make-up and storage

required (safety)

Sensitive to motion

Industrial references

Train capacity 2.5 MTPA+

Leading liquefaction processes


Project management

Courtesy of Air Products

28

FLNG capacity limit = Hull sizePrelude FLNG : 488 m

Akpo FPSO : 320 m

4 FIFA soccer fields,

105mx65m

Prelude FLNG


Project management

29

Example of Floating LNG layout

Source: 2009 Technip R&D Study

30


Project management

30

Installation of motion sensitive equipment close to center

of gravity to limit accelerations

Critical gas / liquid separators and columns designs are

validated through CFD studies performed to ensure even

velocity profiles and flow distribution in compact

equipment and to study sloshing effect on liquid

inventories

Marinization studies for critical equipment (cryogenic heat

exchangers, columns ) supported by licensors and

vendors studies

Marinization of process equipment


Project management

31

LNG Storage

Key parameters or technologies to be considered

LNG storage capacity governed by size of shuttle LNG carriers

Sloshing behavior

Previous experience

Inspection / maintenance over 30 year operations without dry-docking

Competitiveness: schedule, cost, shipyards competition

2 technologies available

Membrane

NO96 Invar

Mark III stainless steel

Dominate the LNGC market

Space efficient

SPB tanks

Aluminium: fabrication by IHI; integration by shipyard

Stainless steel: fabrication & integration by shipyard


Project management

32

LNG offloading


Project management

Side by Side Tandem

Minor modification of carrier

High transfer flow rate

Strength

Sensitive to perpendicular waves (beam sea)

Tug assistance + thrusters

Safety issue (escalation)

Weakness

High availability

Safety distance

No tug assistance if DP

Strength

Major modification of carrier

Limited flow rate

Weakness

2 technologies for LNG offloading

33

What are the key parameters or technologies to be evaluated ?

F-LNG layout

Hazard segregation and protection principles

Environmental emissions control

Availability study of the facility

What will be the basis for making the decision ?

HazId, HazOp reviews and HSE studies will allow to identify hazard, risk and

environmental impacts and facility availability will help to make the decision

Safety


Project management

Safety is ensured with blast walls and gaps between modules

34

Equipment specifications & partnerships with suppliers

Engineering

Procurement Project management

Equipment with new specifications & requirements

Adjustment to the marine environment (sloshing)

Larger, heavier & more complex

Impact on constructability

Acceleration and related loads due to vessel movements

The support of industry leading suppliers is one of the keys to the

success of our projects

Some equipment is specifically designed for FLNG facilities

New higher quality standards to minimize work offshore

Larger / heavier equipment impact on logistics

35

Management of the interfaces during detailed design

Hull (including LNG storage)

Topsides

Pro

du

cti

on

ris

ers

Subsea control

systems

Tu

rre

t&

mo

ori

ng

Equipment

suppliers

Um

bil

ica

ls

Engineering

Procurement

Project management

Interfaces between topsides and hull are

critical:

Main deck layout is a mix of piping & equipment

Some topsides equipment are located in the hull

Blast & spill protection of the substructure

All interfaces are managed and controlled by the topsides designer

36

A combination of skills

Onshore

Offshore

Subsea

Engineering

Procurement

Project management

The FLNG Technology is based on Onshore, Offshore & Subsea

expertise. Ideally the three segments shall be available in the same

operating center

37

A multi-center execution plan

Shell & TSC project directorates

IT / methods

Project controls

Procurement of tagged items and equipment

Topsides engineering

Substructure interface management

Construction coordination

Hull engineering

Construction

Module integration up to mechanical completion

Procurement of steel and other selected bulk

Construction management

Onshore commissioning

Goeje, South Korea

Paris, France

Support on topsides engineering

Kuala Lumpur, Malaysia

Tow, hook-Up &

commissioning

Offshore

Subsea engineering & installation

Support for regulatory requirements

Offshore hook-up & commissioning support

Perth, Australia

Support on topsides engineering

Chennai, India

Engineering

Procurement

Project management

TMS design

Monaco

TMS construction

Dubai, UAE

Example: Prelude FLNG

38

39

IV. Ongoing open sea FLNG projects

39

Two open sea FLNG under construction

Shell FLNG

LNG capacity: 3.6 MTPA

Prelude FLNG in Australia under

construction

Steel cutting of the hull in

October 2012

Steel cutting of the topsides in

January 2013

Hull launching in November 2013

Petronas FLNG

LNG capacity: 1.2 MTPA

Offshore Malaysia

Execution started in June 2012

Steel cutting of the hull in June

2013

Hull launching in April 2014

40

Shell Floating Liquefied Natural Gas contracts

Master AgreementThe design, construction and

installation of multiple FLNG

facilities over 15 years

Generic FLNG FEED

Prelude FLNG FEEDOffshore Western Australia

Prelude FLNG EPCIContract under which the FLNG

would be built when the project

would receive the final

investment decision

Prelude FLNG NTP

Prelude FLNG subsea

Agreement to strengthen

FLNG collaboration

Technip leader in a consortium with Samsung

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2009

2009

2010

2010

2011

2012

2012

Shell Prelude FLNG

First FLNG project ever sanctioned

First of two FLNG projects for Technip

First FLNG under the TP / SHI Frame Agreement with Shell

Largest floating structure ever built

Largest multi-centers offshore projectever (Paris, KL, Perth, Chennai)

200 km from the nearest point on the mainland

200 250 m water depth

Length: 488 m, width: 74 m

Weight:

Steel: 260 000 tonnes

Displacement (tanks full): 600 000 tonnes

Comparison Eiffel tower iron structure = 7 300 tonnes

Prelude

Steel: 36 Eiffel towers

Displacement (tanks full): 82 Eiffel towers

Annual production

3.6 MTPA LNG capacity

1.3 MTPA condensate

0.4 MTPA LPG

Total liquid production: 110 000 boe /day

42

Prelude FLNG is being built in SHIs shipyard in Geoje, South Korea

One of the largest dry docks in the world

A yard equipped with a 8 000 t capacity floating crane

The first steel cutting of the hull started in October 2012

The first steel cutting of the topsides started in January 2013

Prelude EPCIC construction

43

Petronas FLNG 1

Partnership: Daewoo Shipbuilding & Marine Engineering

Second FLNG project worldwide, also located in Asia-Pacific

A challenging project

Location: Malaysia

Production: 1.2 MTPA of LNG

Petronas FLNG 1: a mid-scale project but

a fast-track schedule

44

3 open-sea projects at construction phase

FLNG project Country F.I.D.Distance

fromshore (km)

Waterdepth

(m)Meteo Operator

Capacity

MTPA

Prelude FLNG Australia 05 / 2011 210 250Benign

(Cyclones)Shell 3.6

Petronas FLNG1 Malaysia 06 / 2012 162 70 Benign Petronas 1.2

Petronas FLNG2 Malaysia 01 / 2014 112 1200 Benign Murphy 1.5

FLNG projects in progress

FLNG project Country F.I.D.Distance

fromshore (km)

OperatorCapacity

MTPA

Exmar FLNGbarges 1 & 2

Colombia 01 / 2012 Quay side Exmar 0.5

2 nearshore projects at construction phase

45

FLNG possible areas of development

Better security offshore

Remote fields and deep water

Remote fields

Sensitivity to construction on the

coastline

High cost of onshore construction

Pre-Salt Associated Gas

Difficult access to land

Remote fields and deep water

Brazil

Africa

Nearshore

Offshore East coast

High cost of onshore construction

Canada & Alaska

Australia

Many small fields

Presence of subsea trenches

Asia / Pacific

Remote fields

Arctic Circle

High cost of construction

Sensitive political environment

Eastern Mediterranea

46

LNG FLNG

High demand for LNG worldwide

Marketing flexibility versus pipelines

Technology readily available under license

with well developed service industry

Good returns through long term sales

agreements

Access to resources for IOCs

Ideal for reserves located far offshore in deep

water

Economically attractive in areas with high

onshore construction costs

Potential for reduction of overall field

development time

Development of small fields with relocation

Monetize offshore associated gas versus re-

injection or flaring

LNG and FLNG investment drivers

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V. Conclusion

Floating LNG is reaching maturity

Numerous challenges are met in the design, engineering

and construction phases of an FLNG facility

Several IOCs & NOCs have expressed interest for this

technology and many areas worldwide offer a good

environment for FLNG developments

As of March 2015: 3 open-sea FLNG FIDs among which

2 executed by Technip

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and coming soon

http://www.technip.com/fr/activite/offshore/gnl-flottant

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http://www.technip.com/fr/activite/offshore/gnl-flottant

Thank you

www.technip.com50

FLNG from front-end studies up to smooth execution Dominique... · FLNG from front-end studies up...

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