Mid-scale LNG to help meet China’s growing demand for clean energy

Ningxia Hanas LNG Plant

Our projects

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Pro

2 Ningxia Hanas LNG Plant

* Air Product’s Single Mixed Refrigerant (SMR) liquefaction process

Yinchuan

Ningxia

Inner Mongolia

Gansu

Shizuishan

Wuzhong

Guyuan

Sanying

Xiji

Lingwu

Gantang

Qiying

Tianshuibu

Zhongwei

Client: Ningxia Hanas New Energy GroupNatural Gas Co. Ltd

Location: Yinchuan, Ningxia, P. R China

Contract type: Lump sum for EPCM servicesand equipment supply. Reimbursable fortechnical services

Contract award: Q2 2009

Contract completion: Q4 2011

Fast track project

In 2011, Technip delivered its first LNG plant in China.Ningxia Hanas LNG Project is a mid-scale liquefied natural gas (LNG) plant in Yinchuan,China. It has two trains with a total capacity of 800,000 tonnes per year, based on aSingle Mixed Refrigerant (SMR*) liquefaction process. The LNG is distributed to the Chinese market to help meet the growing demand for clean energy.

Technip’s operating centres in Kuala Lumpur (Malaysia) andShanghai (China) have executed the contract. It is the firstLNG plant to be designed and built by Technip in theAsia-Pacific Region. It represents a breakthrough into themid-scale LNG market and new opportunities for Technip.

Technip’s scope of work

For the Ningxia Hanas plant, Technip provided thefollowing services: basic and detailed Engineering, supplyof main equipment, procurement services, procurement,construction management services for facilities for naturalgas pre-treatment, liquefaction, LNG storage and loading,utilities, offsites, buildings and other infrastructure.

Facility characteristics

2 LNG trains x 400,000 tpa

Pre-treatment units include:Feed gas recompressionAcid Gas Removal UnitDehydration Heavy ends removalMercury removal unit

Air Products SMR* liquefaction process1 x 50,000 m3 full containment LNG storage tankLNG Truck loadingBOG recompressionUtilities, offsites and general facilities

Ningxia Hanas One of the largest LNG facilities of its kind in China

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3Ningxia Hanas LNG Plant

Project team

An efficient and highly engineered e-LNG plant

Technip developed the plant design from scratch, startingfrom the duty specification provided by the client in theITB, through to detailed engineering that included a full3D model of the plant produced in Technip Shanghai.Working with Air Products the feed gas is compressed toreduce the liquefaction overall power requirement. Themixed refrigerant composition was determined usingcomponents readily available in China. The ITB stipulatedelectrical motor drivers for the MR compressor. Technip'sdesign uses electrically driven two stage centrifugalmachines with cost effective fixed speed motors whilecompressor speed variation is provided by hydrauliccouplings. As fuel gas demand is low, all boil off gas fromthe storage tanks and truck loading stations is recycled forreliquefaction thus avoiding wasteful flaring.

The full containment LNG tank was designed taking intoaccount the seismicity of the region.

Extensive dynamic simulations of the plant were done toverify the design including during start-up and othertransient states. The models also enabled the reaction ofthe process controls to changes in weather condition andfeed gas to be evaluated.

An emulated operator training simulator was provided totrain all newly hired operators off line. This ensured asmooth start up with minimal loss of production due tolack of familiarity with the plant.

Our Kuala Lumpur office offeringbroadened

Technip's engineering centres in Kuala Lumpur andShanghai, with the technological support from the Parisoffice, successfully delivered the Hanas LNG plant.

With this project, Technip has demonstrated it can nowoffer LNG capability from its Kuala Lumpur regional centre.

The main challenges of the Hanas project were:

Weather windows, with extremely low temperatures inwinter, had to be factored into the overall constructionschedule.

For this fast-track project awarded in May 2009, LNG tankfoundation works had to be completed by the end of2009.

Delivery time of some major equipment to meetinstallation schedule.

The presence of existing water wells and undergroundpipelines on the project precinct had to be studiedcarefully

Transportation limitations: the relatively remote inlandsite provided a challenge for the transportation of thelarger equipment items including the cryogenicexchangers. Technip planned for this right from the startas part of basic engineering with separation of large itemsinto manageable packages and reassembly on site.

Pressurised cryogenic fluids including LNG are presenthigh in the structure. Steel structures may collapse in theunlikely event of leakage so a number of solutions fromTechnip's other LNG projects were examined beforefixing the protection strategy.

LNG tank One of the LNG trains

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HEADQUARTERSTechnip89 avenue de la Grande Armée75773 Paris Cedex 16FranceLNG / GTL Business UnitPhilip HAGYARD Phone: +33 (0)1 47 78 27 17E-mail: phagyard@technip.com

Technip in Asia Pacific2nd Floor, Wisma Technip241 Jalan Tun Razak50400 Kuala LumpurMalaysiaPhone: +603 2116 7888Fax: +603 2116 7999

Technip in Shanghai11th Floor, Yunhai Mansion1329 Huai Hai Middle RoadShanghai 200031, ChinaPhone: +86 21 64 15 26 00Fax: +86 21 64 15 31 76

This document is the property of Technip and is not intended to be a binding contractual document. Any information contained herein shall not result in any binding obligation on the part of Technip, or any of its affiliates,and is provided for information purposes only. Technip - Group Communications - September 2012

HSE in Design

A project risk management workshop was held to discuss HSE issuesas they could impact on the project and mitigation measures weredeveloped.

HAZOP and other tools were utilised to identify areas that requiredcontrol.

HSE in Construction

4 million manhours were worked on site without an LTI (Lost TimeIncident)

On-site Job Safety Analysis was conducted and the results properlycommunicated prior to any new work starting.

The PULSE programme was used to align the team behind commonHSE goals.

An incentive programme was put in place to encourage the ProjectTeam to meet its stated goals.

HSE performance

HSE is also about:

Understanding the location, people and culture

Managing through the employment of competent local people whocan explain and translate the real issues without losing the facts andemotions

Developing tools that arepractical to use and easy tounderstand

Always being there to listen,guide, support, resolve andtaking control whennecessary.

www.technip.com

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