March 2017

Chenieres Sabine Pass facility:

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Building What Matters
 ISSN 1747-1826

CONTENTS
03 Comment 67 Floating liquefaction nearshore
MARCH 2017
Adrian Finn, Costain, UK, considers the commercial proposition of LNG
production on floating vessels.
05 LNG news
12 The future of Japanese LNG 73 Cryogenic insulation a vital component
Sindre Knutsson and Mai Phan, Rystad Energy, Norway, look at the future of Anatoli Kogan, Lydall Performance Materials, USA, discusses the optimisation
the Japanese LNG market in the midst of nuclear restart operations. of insulation for LNG marine fuel tanks.

19 Fuel systems at sea 77 VIP, the new standard for LNG transfer?
Mike Wells, ACD, USA, discusses high pressure LNG fuel systems Erik Admiraal, Demaco, The Netherlands, presents the advantages of using a
in marine applications. Vacuum Insulated Pipeline (VIP) for LNG transfer.

25 Lowering emissions 81 Insulation installation

Koichi Nishifuji, Class NK, Japan, discusses alternative fuels and NOx and Ted Berglund and Joe Hughes, Dyplast Products, USA, explain the importance
SOx emission reduction technologies. of correct insulation installation at LNG facilities.

30 US LNG: the Eagle has landed
Andrew Walker, Cheniere Energy, Inc., USA, details the changing US LNG
picture and outlines the impact of the Sabine Pass export project.
36 Creating an integrated maritime
industry in Qatar
Nakilat, Qatar, present their involvement across the LNG supply chain in
Qatar.
39 Power & water solutions
Puneet Sharma, MODEC International, Inc., USA, describes the companys
Floating Power and Water Solutions that provide clean water and/or
electrical power more economically, faster and more efficiently than
conventional land-based solutions.
43 Meeting expectations
Marcel Ott, Winterthur Gas & Diesel Ltd., Switzerland, analyses the use of
LNG as a fuel for marine low-speed engines.
48 Right around the corner
Stuart Nicoll, Maritime Strategies International, UK, explains why, despite
a bright future, vessel owners must prepare for changes in trade patterns
and a larger LNG spot market.
87 Mediterranean small scale LNG becomes
a reality
Mauro Evangelisti and Sara Evangelisti, Gas and Heat S.p.A., Italy, look at the
development of the Mediterraneans first small scale LNG storage terminal,
located in Sardinia, Italy.
91 Superior storage
Paul Whayman and Mark Meyts, Technodyne International Ltd, UK, outline
recent developments in LNG storage tank design.
95 Yamal LNG: assessing the risks
Christian Bladanet, TechnipFMC, France, looks at the extreme design
challenges faced during the development of the Yamal LNG project.
102 Changing with the times
Rune Knott, Wrtsil, Norway, looks at how LNG infrastructure is adapting to
help meet the requirements of a changing market.
105 Clever combination
Bjrn Munko, TGE Marine Gas Engineering GmbH, Germany, and Poul Skjth,
Burmeister & Wain Scandinavian Contractor A/S, Denmark, explain how a
combined FSRU and power barge solution can help to access new LNG supply
markets.

52 LNG markets: the bumpy road 109 Gastech 2017 preview

LNG Industry previews a selection of companies that will be exhibiting at this
to 2020 years Gastech Exhibition in Japan from 4 to 7 April.
h Conference & Exhibi
Anne-Sophie Corbeau, KAPSARC, Saudi Arabia, looks at the challenges and
obstacles that the LNG market must overcome en route to market recovery.
128 15 facts... on Japan
Jap
57 Small scale LNG
G pretreatment
technology
Paul Baker, Guild Associates, Inc., USA, presents the details of a
processing system designed to removemove impurities from pipeline
ON THIS M
MONTHS COVER
gas as a pretreatment solution forr small scale LNG liquefaction
plants.
The Sabine Pass Liquefaction
T
61 LNG Wobbe Index
ex control fa
facility shipped its first cargo of
John Y. Mak, Fluor Energy and Chemicals,
micals, USA, analyses LNG on 24 February 2016. This
LN
ion, natural gas
how, when used for power generation, represents the first commercial
repr
compositions must be within designn ranges determined
by the Wobbe Index. export of domestic natural gas
expo
from tthe contiguous US in the
form o of LNG. It also marked the
entry of new liquefaction player,
Cheniere Energy, Inc., into the LNG
productio
production business.

Copyright Palladian Publications Ltd 2 2017. All rights reserved. No part of

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rom our sales department.
this publication may be reproduced, stor
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Together facing a
brighter tomorrow
At Yokogawa, we believe the skys the limit.
And to reach beyond todays horizons,
we work step-by-step with you to make
the unimagined a reality. Thats how we
move forward, through the synergy of
co-innovation partnership. Join hands with
us, and together we can sustain a brighter
future. Yokogawa: Building a better
tomorrow with you today.

Please visit www.yokogawa.com/eu

 JOSEPH GREEN
EDITOR

COMMENT apan is the worlds largest importer of LNG at

J approximately 35% of global demand. Tokyo is the

worlds largest city, and also the worlds largest LNG
importing zone. It therefore makes perfect sense that
in April 2017, the worlds largest global gas and LNG event,
Gastech, is coming to town.
as a cornerstone fuel. Japanese gas consumption hit record
levels in January. Tokyo Gas reported that usage in the
capital city reached over 60 million m3.
Japan has imported approximately 88 million tons of
As the LNG industry readies itself for this years exhibition
LNG over the last two years, and whilst it is true that this
and conference in Tokyo, there is a real buzz being generated
figure is expected to fall to 60 million tons by 2030, a
by the show. With over 25 000 attendees, 2500 conference
growing number of Japanese companies are diversifying
delegates and over 600 exhibitors arriving from over
in order to ensure continued growth. As an example,
70 countries worldwide, the event promises new ideas,
Tokyo Gas is planning to expand its global presence in the
innovative solutions and the possibility of building profitable
fight against domestic demand troubles. As one of Japans
business connections.
largest LNG buyers, the company has announced a number
As the eyes of the LNG world fall upon Tokyo, it is worth
of international projects, including an exchange agreement
considering how the industry in Japan continues to develop,
that will enable the energy provider to reduce shipping
particularly as the country begins to restart their nuclear
times and costs, and the signing of a memorandum of
reactors.
understanding with PT. Miura Indonesia to establish
If recent reports are to be believed, Japans LNG buyers are
a strategy for industrial and commercial customers in
using their position of power as the worlds largest buyers of
Indonesia.
the fuel to earn concessions for more flexible terms. Japans
In the face of a changing energy picture in Japan, it
electric utilities have won provisions that will allow them to
is clear that LNG buyers will have to follow the lead of
divert contracted LNG cargoes in the eventuality that nuclear
Tokyo Gas in switching their angle of attack.
reactors are restarted. This could set a worrying precedent for
Delving into the future of Japanese LNG more deeply,
LNG as more contracts start coming up for renewal.
this issue of LNG Industry contains a regional report from
Furthermore, the Japanese electric companies are pushing
Rystad Energy (p. 12), focusing on the impact of nuclear
to gain allowances to resell imported cargoes and reduce their
restart operations on the LNG market. The outlook for
dependence on long-term contracts as Japans LNG demand
Japanese LNG will no doubt be one of the main talking
dwindles. A shrinking population and greater use of alternative
points of this years Gastech Conference and Exhibition.
fuels has further contributed to this marked decrease in
A preview of a selection of exhibiting companies can be
demand. Even as Asian spot LNG prices have dropped 65%
found towards the back of this issue (p. 109). If you are
from their 2014 peak, Japans electric utilities seemingly
in attendance in early April, please visit the LNG Industry
still want to restart their nuclear reactors since they are a
team at stand 11-390 in Hall 4, where we look forward to
lower-cost power generation source.1
meeting you!
This is not to say that LNG is being hurried out of the
1. http://uk.reuters.com/article/uk-japan-lng-reactors-
door in Japan. For many energy companies, LNG is still seen idUKKBN15W0JV

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 YO
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100
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C 7 B
A STE l 201
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US to 7
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40 YEARS EXPERIENCE IN EPC CONTRACTS

FOR LNG & LPG PROJECTS, IN ANY ENVIRONMENT WORLDWIDE
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www.entrepose.com
 LNGNEWS
Canada
Seaspan takes delivery of
LNG dual-fuelled/hybrid
ferry
S easpan Ferries Corp. (SFC) has announced that
the Seaspan Reliant the second of two new
dual-fuelled/hybrid (diesel, LNG and battery) ferries has
been successfully delivered.
The vessel is currently docked at the SFC Tilbury
Terminal in Delta, British Columbia (B.C.), Canada, following
an eight-week, 10 661 nautical mile journey from the
Sedef Shipyard in Istanbul, Turkey. It is 148.9 m long and
can accommodate up to fifty-nine 53 in. trailers. It is now
set to undergo a number of regulatory inspections and crew
training programmes throughout March before entering
operation in April.
The President of Seaspan Ferries, Steve Roth, said: The
arrival of the Seaspan Reliant marks a proud milestone in
the history of Seaspan Ferries Corporation.
With the introduction of a second new technologically
advanced, LNG-fuelled vessel to our fleet, we are living
out a clear commitment to our drop-trailer customers
as well to the waterways in which we operate. As with
the Seaspan Swift, the Seaspan Reliant will reduce our
greenhouse gas emissions dramatically compared to other
current alternatives while delivering the highest level of
efficiency, performance and reliability.
Seaspan Reliants sister vessel, Seaspan Swift, arrived
in December 2016 and commenced operations in January
2017. The company currently operates a seven-ferry fleet out
of five terminals in B.C., and supplies more than 50% of all
cargo to Vancouver Island.
France
Fosmax LNG considers small scale LNG vessel loading
services at Fos Cavaou
osmax LNG has announced that it is considering making
F short/medium-term investments to modify its existing
facilities to make them capable of receiving both existing
and planned small scale LNG vessels at the Fos Cavaou LNG
terminal in France.
The company claims that these investments are being
planned in order to offer LNG market players the opportunity
USA
Venture Global LNG files
formal application to
construct export terminal
enture Global LNG has announced that its subsidiaries,
V Venture Global Plaquemines LNG and Venture Global Gator
Express have completed the preliminary review process with FERC
and have now submitted the formal application requesting FERCs
authorisation to site, construct and operate the Plaquemines LNG
export terminal and the Gator Express pipeline system.
The 20.0 million tpy Plaquemines LNG facility will be
constructed on a 632-acre site in Plaquemines Parish, Louisiana
at river mile marker 55 on the Mississippi River, approximately
30 miles south of New Orleans, Louisiana. The export facility
includes over 7000 ft of Mississippi River frontage with three LNG
loading docks.
In a joint statement, Co-CEOs Bob Pender and Mike Sabel said,
Submitting our formal application is a significant milestone in the
development of our second low cost LNG export terminal. With
the support of the Plaquemines Port and the Plaquemines Council,
this large, attractive site on the Mississippi River is convenient
and safely accessible to our international LNG customers. Further,
we can access plentiful sources of US natural gas through nearby,
liquid interconnection points and skip the high-cost, long-distance
lateral pipelines that many projects are burdened with.
Working with GE Oil & Gas as a strategic partner, Plaquemines
LNG is utilising GEs plant-wide LNG process system, incorporating
a comprehensive power, pretreatment and highly modularised LNG
liquefaction system. This system, together with the enormous
logistic advantages of the Plaquemines site, allows Venture
Global to continue to innovate and lower the cost of providing
LNG to the growing global market for plentiful US natural gas.
to load small scale LNG vessels with LNG under optimal
safety, reliability and performance conditions.
As such, the company has launched a call for expressions
of interest to discuss the technical aspects of the project
with interested parties, and to evaluate the requirements and
expectations related to the proposed small scale LNG vessel
loading service.
March 2017 5
 Belgium
LNGNEWS
Worlds first LNG-powered
cutter suction dredger
scheduled for 2019 delivery
EME Group has announced that the worlds first
D LNG-powered cutter suction dredger, Spartacus, is
set to join the companys fleet.
Spartacus will be constructed at Royal IHC in
the Netherlands, and will be 164 m long. It will have
a total installed capacity of 44.180 kW, and will be
capable of cutting harder soils at faster speeds. This
will mean that the dredger will not have to rely
on dynamite and blasting. The vessel is scheduled
for delivery in summer 2019, and will be the most
powerful cutter suction dredger in the world.
The vessel will be able to dredge in waters of up to
45 m. This is compared to the current upper limit in the
market of 35 m. It will also be capable of operating in
remote locations where there is limited infrastructure.
Spartacus follows the order of the first
LNG-powered trailing suction hopper dredgers, Minerva
and Scheldt River, and will have a Green Passport and
Clean Design notation.
It will also feature a number of innovations,
including a waste heat recovery system that converts
heat from the exhaust gasses into electrical energy.
News Highlights
X Steelhead LNG appoints
Chief Financial Ofcer
X Total seeking to buy Iranian LNG project
X Damen reacts to growing LNG market
Visit our website for more news: www.lngindustry.com
6 March 2017
Australia
Woodside and GE to support
use of LNG as fuel in Western
Australia
oodside has released a statement claiming that it has signed
W an agreement with GE to support the use of LNG as fuel in
Western Australia.
The agreement will provide customers with the option of seamless
access to reliable LNG fuel supply and gas-fuelled transport and power
generation solutions.
Peter Coleman, the CEO of Woodside, said: The agreement
between our companies will harness the combined experience and
offerings of Woodside and GE, allowing customers to choose LNG as a
fuel that will deliver significant cost and emissions reductions.
Woodside is ideally placed to lead the transition to LNG fuelling,
with world-class LNG facilities in the Pilbara in close proximity to
heavy industries.
The Regional Director for GE Oil & Gas ANZ/PNG, Mary Hackett,
added: Businesses are continually under pressure to seek and adopt
solutions that reduce their emissions footprint, while decreasing costs.
LNG is a fuel source that is sustainable and cost-effective.
Developing new fuel technology to power industries such as
marine, transportation and mining is key and as a Digital Industrial
Company that works across multiple industries and sectors, GE looks
forward to working with Woodside to deliver gas technology solutions
for customers.
 A COLLABORATIVE
APPROACH
CB&I understands our customers needs
for economical projects that compete in
todays competitive, global marketplace.
Our collaborative approach provides a safe,
environmentally responsible and cost-
efficient design and execution strategy
that assures certainty of outcome and a
financeable project.

From engineering and construction to

commissioning, initial operations and
ongoing maintenance, CB&I helps customers
get their gas to market delivering
consistent results regardless of the project
location. Contact CB&I to learn how our
complete solutions can benefit your next
LNG project.

ONSHORE LIQUEFACTION
FLOATING LNG
REGASIFICATION
PEAK SHAVING
LNG STORAGE
Rio Grande LNG / Image courtesy of NextDecade, LLC

A World of Solutions
Visit www.CBI.com
07M022017H
 The Philippines
LNGNEWS
DOE wants to convert
Malaya thermal plant
into LNG facility
ccording to multiple sources, the Department
A of Energy (DOE) has said that the winning
bidder of the 650 MW Malaya Thermal Power Plant
Complex should convert the power asset into a
LNG plant.
However, the bid documents do not indicate
the conversion of the Malaya plant into an LNG
plant. Therefore, there may be a need to start the
bidding process all over again.
Four companies have expressed interest to
participate in the auction. APT Global Inc., Phinma
Energy Corp., Riverbend Consolidated Mining Corp.
and AC Energy Holdings Inc. submitted letters of
interest. Their bids will be evaluated in preparation
for the auction set on 8 March.
Power Sector Assets and Liabilities
Management Corp. manages the assets and
liabilities of National Power Corp. as mandated by
the Electric Power Industry Reform Act of 2001. It
will also undertake the bidding process.
Situated in Pililia, Rizal province, the
Malaya plant was rehabilitated in 1995 by
Korea Electric Power Corp. under a 15-year
rehabilitate-operate-manage-maintain agreement.
It consists of a 300 MW unit with a once-through
type boiler and a 350 MW unit fitted with a
conventional boiler.
28 - 30 March 2017 08 - 09 May 2017
StocExpo Europe FLNG Global
Rotterdam, The Netherlands Amsterdam, The Netherlands
www.easyfairs.com/stocexpo-rotterdam-2017/ energy.knect365.com/flng
stocexpo-rotterdam-2017
08 - 11 May 2017
04 - 07 April 2017 Flame
Gastech Amsterdam, The Netherlands
Chiba, Tokyo, Japan energy.knect365.com/
www.gastechevent.com flame-conference
8 March 2017
Lithuania
Chart LNG Storage Tanks on
the way to Klaipeda Port
hree of Charts Decinske Giants cryogenic storage tanks,
T designed and manufactured for the Klaipeda LNG reloading
station, have been shipped from the Chart Ferox facility in
the Czech Republic and are en route to AB Klaipedos Nafta in
Lithuania. River barges will first take the tanks to Hamburg
where they will be re-loaded onto a sea cargo carrier and sailed
through the Baltic Sea to the port of Klaipeda.
Foundations at the site of the LNG reloading station have
already been prepared, by partner company PPS Pipeline Systems,
in anticipation of the first three tanks arrival in mid-March. The
two remaining tanks, are scheduled to arrive from the Czech
Republic at the beginning of the summer to provide an initial
storage capacity of 5 million litres of LNG, which is approximately
3 billion litres of natural gas in gaseous form.
Marius Pulkauninkas, CEO of AB Klaipedos Nafta, said: When
the LNG distribution station is put into operation, the port of
Klaipeda will become the LNG hub for the Baltic countries and
north-eastern Poland.
The LNG reloading station is aimed at creating a small scale
LNG operational infrastructure and developing the LNG market
in the Baltic Sea region. The station will be comprised of LNG
tanks with a total capacity 5000 m3. Gas from the floating
storage and regasification unit (FSRU) Independence will be
delivered to the storage tanks by a gas tanker and distributed
by road tank trucks or vessels. There are plans to expand the
LNG stations capacities up to 10 000 m3. The LNG station
will be equipped with two truck filling stations and will be
accommodated for reloading LNG onto gas tankers.
17 - 19 May 2017
CWC China LNG & Gas
International Summit & Exhibition
Beijing, China
www.chinalngsummit.com
30 - 02 June 2017
Nor Shipping
Oslo, Norway
www.nor-shipping.com
 S O LU T I O N S

SHIP
FUELING

RAIL
FUELING APPLICATIONS EXPLORATION

Chart is pioneering the adoption of LNG as a clean-burning, safe and

economical fuel alternative for energy, transportation and industry.
www.ChartLNG.com
 Australia
LNGNEWS
Swift to provide
entertainment and
connectivity services for
Prelude
wift Networks Group Ltd has announced that is has been
S awarded a material long-term contract to provide design,
construction, maintenance and support services to Shells Prelude
LNG project offshore Western Australia.
Through agreements with both Nokia and Shell, Swift will
deliver a suite of entertainment and connectivity services for the
floating LNG (FLNG) unit, initially for a five-year period. These
include the following:
Foxtel TV.
Free-to-air TV.
Hollywood movies on demand.
Wireless internet via Nextgen subsea optical fibre cable.
Custom alerting and messaging, with connection to
public address and general alarm (PAGA) systems for
extending communication to all screens in the event of
an emergency.
Wellbeing and corporate information channels.
Ongoing maintenance and support with 24/7 helpdesk.
Xavier Kris, the Chief Executive Officer of Swift Networks, said:
We are excited to support Shell on Prelude, which is one of the
worlds most significant LNG projects.
Shell faced a significant technical challenge in keeping
its offshore workers entertained, informed and connected.
We are pleased that the recognition of Swifts technological
capabilities has led Shell to invite us to provide a comprehensive
telecommunication and digital entertainment solution to the
Prelude project.
France
Chart Ferox to design and construct second natural gas
fuelling station
hart Ferox a subsidiary of Chart Industries Inc. has
C hosted a delegation from Proviridis at the Ferox facility
and concluded an agreement for a second, Chart designed and
constructed, natural gas fuelling station.
Like its counterpart, the facility will be commissioned
during 1Q17. The fuelling station will be located near to
the container terminal at Frances main trade seaport,
Marseille-Fos.
10 March 2017
USA
Samsung Engineering and
KBR to design and construct
Texas LNG project
exas LNG Brownsville LLC has selected Samsung Engineering
T Co. Ltd and KBR Inc. to build its proposed 4 million tpy LNG
export facility.
Samsung and KBR will provide pre-final investment decision
(pre-FID) detailed engineering, and post-final investment decision
(post-FID) engineering, procurement and construction (EPC) services
for the project.
Samsung has already carried out the conceptual study, pre-front
end engineering and design (pre-FEED) and FEED work for the
project. The design involves the construction of modular designed
and pre-fabricated liquefaction trains, using proven technology and
standardised components in a controlled shipyard environment.
As Texas LNGs owners engineer, Braemar Engineering is
working with Samsung and KBR and continues to identify value
engineering enhancements to reduce project costs and optimise
performance. It is also responding to data requests during the US
FERC permitting process.
KBR, meanwhile, has experience in the design and fabrication
of over 1.3 million t of modules, including the worlds first
fully modularised LNG facility. It also has experience with the
APCI AP-C3MR technology, which Texas LNG will utilise.
Pre-FID detailed engineering is expected to start in 2017. Over
the coming months, agreements between Texas LNG and Samsung
and KBR for pre-FID detailed engineering EPC will be negotiated.
This milestone towards FID follows the recent announcement
that Texas LNG has executed detailed non-binding term sheets with
four independent LNG purchasers in Southeast Asia and China for a
volume of 3.1 million tpy.
FID for the development of the project is expected in 2018.
The fully automated station will be operated 24/7 by a
company owned by Proviridis V-gas. It will dispense LNG
and CNG for natural gas fuelled heavy haulage vehicles and
passenger cars, respectively.
Charts scope includes complete turnkey installation, as
well as servicing and maintenance. The company will use its
Chart Vacuum Technology, as well as equipment such as the
LNG Dynaflow 3000 dispenser.
Who developed the worlds first LNG tanker?
Who opened up the Asia-Pacific market by exporting LNG from Alaska to Japan?
Whose Optimized Cascade Process technology was selected for four of the last
seven LNG projects in Australia?
Whose technology is expected to produce 25% of the worlds LNG by 2020?

Answer: ConocoPhillips

With all that expertise and experience in LNG, shouldnt you be

talking to ConocoPhillips, too?

To learn more, visit lnglicensing.conocophillips.com. Liquefied Natural Gas

Optimized Cascade is a registered trademark of ConocoPhillips Company in the United States and certain other countries.
ConocoPhillips Company. 2017. All rights reserved.
 The future of

Sindre Knutsson
and Mai Phan,
Rystad Energy,
Norway, look at the
future of the Japanese
LNG market in the
midst of nuclear restart
operations.

Following the global recession in 2008 2009 and the

2011 Thoku earthquake and tsunami, the Fukushima
accident cast a long shadow over the Japanese energy
sector. Japans sudden need for alternative sources of energy
following the nuclear shutdown forced a shift in energy imports.
LNG imports surged to replace the loss of nuclear power generation.
I n 2015, nuclear reactors began to restart and, as of January 2017,
26 reactors had applied for permission to restart operations, signalling
another shift in Japans energy mix. Nuclear restarts will ease Japans
dependence on LNG, as well as facilitate global LNG demand, creating a
more flexible buyers market. In Rystad Energys base case analysis, the
company expects 18 reactors to come online by 2025 and Japans LNG
imports to fall to 69 million tpy, down from 85 million tpy in 2015. This

12
13

Figure 1. Nuclear restart base case (GW) (source: Rystad Energy research and
analysis).
Figure 2. Japans power generation mix (TWh) (source: Rystad Energy research and
analysis).
article highlights the challenges that LNG will face as nuclear
power resumes operations, Japans energy mix outlook and its
role in shaping the global LNG market.
2005 2015: Nuclear shutdowns
shift energy demand to LNG
After a period of slow growth from 2005 to 2010, Japans
power sector experienced a substantial change following the
2011 Thoku earthquake and tsunami. The resulting nuclear
emergency at the Fukushima power plant led to a suspension
of all nuclear operations for safety inspections. In 2010, nuclear the country experienced in recent years. However, with a lengthy
operations were producing 288 TWh (approximately 25%
of Japans energy usage) from 54 reactors. Oil and gas were
primarily utilised to make up the immediate shortfall from the
nuclear shutdowns. Oil demand for power generation doubled
between 2010 and 2012, increasing from approximately
99 TWh in 2010 to 197 TWh in 2012, accounting for 36% of
the 272 TWh lost from nuclear. Gas-for-power generation
also increased 100 TWh (to 461 TWh), covering 37% of power
demand previously filled by nuclear. In contrast to oil and
gas, Japan did not experience any significant increase in
coal demand for power generation as coal-fired plants had
already been running baseload at a high utilisation rate. The
remaining loss in nuclear power generation was covered by
power conservation policies and efficiency gains, leading to
an overall decline in power consumption. While oil and gas
were the primary contributors to making up the shortfall, oil
14 March 2017
consumption has retreated to 2010s
level, while gas consumption has stayed
at the post-nuclear shutdown level of
approximately 460 TWh.
Despite little growth in city gas
consumption in Japan, gas-for-power
increased, leading to a surge in LNG
imports. The country increased LNG
imports by 27% within two years, from
70 million tpy in 2010 to 87 million tpy in
2012. Over the same period, Japans
average LNG import prices climbed from
US$10.5/million Btu in 2010 to
US$16.1/million Btu in 2012 (while Brent
oil prices increased from US$80/bbl to
US$111/bbl over the same period). LNG
imports peaked in 2014 at 89 million tpy,
declining in 2015 as nuclear reactors
returned to operations.
2015 2025: Nuclear
restart resets Japanese
energy sector
Over the next 10 years, Rystad Energy
expects growth in the city gas sector and
a decline in total power generation. The
resumption of nuclear operations will
shape the Japanese power sector and
be the main driver for the countrys LNG
imports.
City gas consumption is expected to
reach approximately 31 million tpy in 2025
from 27 million tpy in 2015, mainly within
the industrial sector as natural gas has
gained share from oil products in industrial
energy consumption. Total city gas
consumption grew by 1% y/y between 2005 and 2015. While gas
demand in the household and commercial sectors is on a
declining trend, industrial demand has been growing, leading to
a moderate overall increase in city gas consumption.
Total power generation in Japan has been falling due to
power conservation policies, a shrinking population, and weak
economic growth. Japans power generation mix going forward
is highly dependent on the pace and magnitude of its nuclear
restarts. The resumption of nuclear operations will reverse the
surge in usage of natural gas and oil for power generation that
nuclear restart process, a rapid decline in gas consumption is
not expected. Before restart approval, nuclear plants must go
through a risk and safety reassessment (stress test) carried out
by the Nuclear Regulation Authority (NRA). The assessments
include simulations on the effects of potential tsunamis,
earthquakes and loss of off-site power events. After passing the
reassessment test, the restart must be approved by the prime
minister and then the local government. Local opposition to
restarts is strong as public trust in the safety of nuclear power
has eroded.1
In Rystad Energys base case, Japan will see 12 out of the
26 reactors initially under review become operational by 2020.
Three of these reactors are already online. Furthermore, another
six reactors are likely to restart by 2025. In the analysis, the
plants geographic position, distance to populated areas, age,
status of stress tests, as well as political opposition, were
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Figure 3. Japans projected LNG imports and contracted volumes (million tpy)
(source: Japans import statistics,2 Rystad Energy research and analysis).
Figure 4. Global gas prices (US$/million Btu) and Brent crude price (US$/bbl)
(source: Rystad Energy research and analysis3).
assessed. The restart of 18 reactors by 2025 would add 15.8 GW
of nuclear capacity (Figure 1). This equates to power generation
of approximately 100 TWh, or 10% of Japanese power
generation in 2025, assuming a 70% nuclear capacity factor
(Figure 2). In Rystad Energys high case scenario assuming faster
restarts, 26 reactors are expected to come online by 2025,
adding 25 GW of capacity. This equates to power generation of
approximately 160 TWh (16% of power generation in 2025). The
remaining reactors are not expected to return by 2025.
According to the Japanese Governments Long-Term Energy
Supply and Demand Outlook, 22 24% of electricity will come
from renewables by 2030, up from 13.5% in 2016.4 The strategy
also pushes for nuclear power to supply 20 22% of Japanese
power generation in 2030 to meet their greenhouse gas (GHG)
target under the UNs Intended Nationally Determined
Contribution. The restart of nuclear power plants is, however,
being strongly challenged by public opposition. Delays in
restarting nuclear reactors would require longer-term reliance
on LNG, coal, and renewables. In order for Japan to meet their
GHG target, renewables would ideally fill the supply gap, but
cost considerations may give LNG an advantage over renewable
energy sources.
16 March 2017
In Rystad Energys base case, Japans
LNG imports are expected to be
69 million tpy by 2025, falling from
85 million tpy in 2015. The high case
scenario, in which nuclear resumes faster,
estimates that Japans LNG imports could
fall to 62 million tpy by 2025 (Figure 3).
This fall in LNG imports would mean
that Japan is overloaded with long-term
contracts. This over-contracted position,
combined with inflexible destination
clauses, could force the country to absorb
these contracted volumes and be shut out
of the spot market. In an oversupplied
market where Japan is unable to
renegotiate destination-clauses in
long-term contracts, there will be a drop in
US LNG flows to Japan. With tolling
agreements, no destination clause and a
Henry Hub (HH) price link, US LNG is the
most flexible term supply to Japan
(Figure 3), accounting for 20% of total
contracted volumes by 2019.
Managing the LNG
market: global,
local, and contract
uncertainty converges
Concurrent with its shifting energy mix,
Japan is pushing for market reforms and
liberalisation. In mid-2016, the countrys
Fair Trade Commission initiated an
investigation into whether destination
clauses in LNG contracts impede
competition laws. Over 70% of long-term
contracts to Japan have destination
clauses. If these contracts are found to
be in violation, this would significantly
strengthen Japans negotiating position.
The Japanese government is also making
efforts to support and increase spot LNG
trading. In 2016, the Singapore Exchange and Tokyo Commodity
Exchange entered into a cooperation agreement to develop the
spot LNG market in Asia. In addition, the Japanese government
is attempting to break up monopolistic utilities and encourage
more third-party power suppliers. Success of these initiatives
may simplify the countrys energy burden, reduce price shocks,
and help meet GHG emission standards.
According to cost of supply analysis in Rystad Energys
bottom-up field by field Upstream Database, Brent crude prices
are forecasted to reach US$107/bbl by 2025. This is equivalent
to long-term LNG contract prices (14.85% indexed to oil) of
US$16/million Btu. HH prices are expected to fluctuate between
US$3/million Btu and US$5/million Btu towards 2025, mainly
based on the breakeven level required to balance US domestic
gas production with consumption and export. Asian spot LNG
and NBP prices are expected to remain low until the early 2020s
as the market is oversupplied (Figure 4). Rystad Energy sees the
LNG market rebalancing in the early 2020s as well. New projects
will need to be sanctioned then in order to meet demand as
existing supplies begin to deplete.
Given anticipated rising oil prices, long-term oil-linked LNG
contract prices would climb substantially above spot prices. This
 Figure 5. Volumes and short-term marginal costs for currently producing LNG projects in 2016 (A), and volumes and breakeven
price for unsanctioned LNG projects in 2025 (B) (Source: Rystad Energy UCube5).
will lead to strong pressure for contract renegotiation and
spot trading.
View from the LNG exporters side
Out of countries currently exporting LNG to Japan, the primary
suppliers are Qatar, Malaysia and Australia. LNG imports from
Qatar doubled from 2010 to 2012, but have fallen by 25%
from 2013 to 2016.
Given a scenario in which contract renegotiations and
spot trading are critical, exporters with lower breakeven costs
will be the most flexible and open to new terms. Being one of
the suppliers with the lowest breakeven costs and largest
available volumes, Qatar is expected to play a key role in
shaping a spot LNG market in Japan.
Figure 5A shows short-term marginal cost of various LNG
suppliers in 2016. The short-term marginal cost includes all
variable costs related to the operation of a project and
royalties. Transportation to market is not included. In an
oversupplied LNG market, Qatar recognises its competitive
advantage lies in its low breakeven prices and flexibility. It
may be more difficult for other suppliers, such as Australia, to
accept renegotiations.
In the mid-2020s, Japan may require additional LNG
supplies as existing contracts begin to expire. Japanese buyers
will certainly prefer exporters that offer flexible short-term
contracts. This means that countries with the lowest full cycle
production costs and large available resources will be
preferred providers compared to their competitors. Rystad
Energys UCube shows that Iran has the lowest breakeven
prices for unsanctioned LNG projects. The breakeven price is
the minimum flat gas price needed to cover the full cycle
costs of a project excluding transportation to market. However,
whether or not Iran supplies LNG to Japan depends on how
quickly LNG projects are sanctioned and developed
(Figure 5B).
18 March 2017
Conclusion
Overall, the pace and magnitude of the resumption
of nuclear operations will be the primary factor in
how the Japanese energy sector matures. By lowering
gas-for-power generation demand, nuclear will put
downward pressure on Japanese LNG demand and
consequently long-term contract prices. Concurrent to
this will be a need to encourage a more transparent gas
trading market. As the LNG market has gone through
a significant period of expansion, there will need to
be change as well. Regardless of the shift in domestic
demand related to nuclear, Japan will continue to rely
on LNG as its safest, cleanest, and best option for
power generation over the long-term. However, with an
increase in the number of importers, exporters, cargoes,
and contract options, the LNG market is undergoing a
generational shift as well. As the worlds largest consumer
of LNG, Japan must take the lead in modernising the
global LNG market to fit this new reality, both global and
domestic.
References
1. Japans Nuclear Regulation Authority.
2. Japan import statistics, Trade Statistics of Japan,
Ministry of Finance.
3. Prices are nominal, annual average, assuming normal
weather without seasonal variations. East Asian spot
LNG excludes regasification cost. NBP is National
Balancing Point, UKs traded spot gas prices. Brent crude
price forecast is Rystad Energys base case scenario. JCC-
indexed is Japans customs clearance price, long-term
LNG import prices into Japan linked to Brent crude
with a lag history is based on historical Brent crude
and forecast is based on Rystad Energys Brent base case
forecast. Brent crude forward as of 26 January 2017.
4. Japans Ministry of Economy, Trade and Industry.
5. Rystad Energy UCube, Upstream Database.
at s e a
Fuel systems

Mike Wells, ACD, USA, discusses

high pressure LNG fuel systems
in marine applications.

L
NG as a marine fuel has shown great potential
as a clean, safe, reliable, and cost-effective
alternative to diesel fuel in an ever changing
global environment. Perhaps the most significant
of these changes has been the International
Maritime Organizations (IMO) implementation of
MARPOL Annex VI. MARPOL Annex VI was initially
implemented in 2005 to lower global SOx and NOx
emissions, and then revised later that year, with the
revision implemented in 2010. This revision called
for further increases in global emission regulations,
as well as for the development of emission control
Figure 2. MSP-34.2
submerged boost
areas (ECAs), in which emissions would be further
pump. regulated. To comply with these regulations, focus
was placed on the quality and composition of fuels

19

Figure 1. MSP-3SL high pressure pump.
used in maritime service, resulting in a plan that would
reduce the current diesel fuel sulfur limits from 3.50% to
just 0.50%, to be effective as of 1 January 2020. As often
occurs when necessity stokes the flames of ingenuity and
invention, the notion of this potentially more costly and
less available lower sulfur diesel fuel inspired many to
look for prospective alternatives. Eventually, this resulted
in a push to research and implement the use of liquefied
light hydrocarbons LNG being the most common as
marine fuels. ACD has experience with both low pressure
(approximately 8 bar) port injected engines and high
pressure (approximately 300 bar) direct injected engines.
The high pressure variety is the more intricate of the two
types of fuel gas systems.
High pressure fuel gas systems vary in design from
one application to another. However, they typically consist
of several primary components, namely the following:
reciprocating high pressure pump; drive motor; power
transmission system (such as a gearbox or belt drive);
centrifugal feed pump (often referred to as a boost pump);
a high pressure heat exchanger (often referred to as a
vaporiser); a lubrication system of one of various forms;
piping and valves; control and diagnostic electronics; and
a base frame. ACD has built these systems in both single
pump and dual pump configurations, depending on the
level of redundancy required.
Pump selection and operation
At the heart of the fuel gas system is the high pressure
pump. To achieve output pressures in excess of 300 bar,
reciprocating piston type positive displacement pumps
are utilised. Selecting the appropriate pump for this
application is crucial, as there are many challenging
demands placed upon it. As LNG is a cryogenic fluid,
the pump must be specially designed for this service,
employing unique technologies, geometries and material
selections. The pump must be capable of running
continuously for days or even weeks at a time. It must be
of sufficient size to satisfy the relatively large (as far as
reciprocating cryogenic pumps are concerned) flowrates
required by an engine operating at maximum power, yet
be able to turn down to comparatively small flowrates
required by an engine operating at idle conditions. Finally,
and perhaps most importantly, it is imperative that the
pump be able to operate reliably, as the only opportunity
to perform major maintenance is typically every five years
in dry dock. Based on the aforementioned criteria, a pump
was chosen from ACDs SLS enhanced oil recovery line.
20 March 2017
While this was not a pump initially designed specifically
for maritime service, it has successfully operated in
service conditions more severe than those now being
demanded of it, making it suitable to be configured into
what is now known as the MSP-SL the worlds first high
pressure pump to ever supply high pressure LNG fuel to a
ME-GI engine in a marine environment (Figure 1).
A positive displacement pump is aptly called so
because it creates fluid motion through the repeated
increasing and decreasing of its internal volume. In the
case of a reciprocating piston pump, this increase and
decrease in volume comes from the extension and
retraction of a piston into and out of a cylinder. In
operation, pump flow is dictated by the demand of the
engine using pump discharge pressure as control
feedback, and adjusted by managing the speed of the
pump accordingly.
Drive systems
ACD has used several varieties of drive systems over the
course of many years of manufacturing reciprocating
pumps. Depending on operating conditions, these
pumps will be driven by either an electric or a hydraulic
motor, either directly or through a speed reducer, such
as a gearbox or a timing belt and sprocket system. The
most common arrangement is that of an electric motor
driving the pump through a speed reducer. On shipboard
systems, a gearbox is typically selected as the speed
reducer, as it is physically a relatively small device that is
able to transmit a relatively large amount of torque a
crucial feature when machinery space is a limitation. On
land-based fuel systems, used for engine testing, a timing
belt and sprocket set is typically selected. Although
the timing belt and sprocket set is somewhat larger
than a gearbox, it has the same torque transmission
capabilities, as well as being somewhat less expensive,
and easier to maintain. Motor speed is controlled using a
variable frequency drive (VFD) using control feedback as
mentioned in the previous section of this article.
Hydraulic systems are utilised as an alternative to
electric motors. A current policy enforced by the
US Coast Guard (USCG) on ships under its jurisdiction
dictates that an alternate source of power must be
utilised when that power source is located within a
hazardous, potentially explosive environment. Hydraulic
motors are directly coupled to the input shaft of the
pump, and driven using a hydraulic power unit (HPU) that
is located in a non-hazardous area of the ship. Motor
speed is controlled by varying the output flow of the HPU,
again using pressure control feedback. This method,
although employed less often than the electric motor
drive, has operated ACD MSP-SL pumps quite successfully
on the TOTE ships Isla Bella and Perla del Caribe.
Primary support systems
As with many kinds of industrial equipment, there are
several support systems that are crucial in the proper
operation of these high pressure fuel gas systems. These
fuel gas systems employ an array of piping, valves,
transmitters, and inert gas purges that function in a way
that, while important to operation, is not appreciably
different than other industrial machinery of this class.
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 However, there are two support systems that are
appreciably unique, both in their selection, and in their
operation. These systems are the cryogenic boost pump
and the drive lubrication system.
The boost pump is a submerged centrifugal pump,
such as ACDs MSP-34.2 that feeds the high pressure
reciprocating pump with fluid from the storage vessel at
appropriate flow and net positive suction head (NPSH)
levels (Figure 2). NPSH is sometimes referred to as net
positive suction pressure (NPSP), or often simply as
subcooling, and is a crucial thermodynamic property of
fluid in pumping applications. NPSH is often thought of in
error as being the same thing as line pressure, although
these two terms are assuredly distinct. A fairly simple
explanation of NPSH is that it is the amount of pressure
on the fluid above the saturation pressure (the pressure at
which a liquid boils at a given temperature). Having
ample NPSH to feed the boost pump is critical in
preventing cavitation of the high pressure pump, and in
ensuring proper and efficient operation of the high
pressure pump.
Although lubrication systems are quite common in
industrial equipment, the way that they are configured
and utilised in reciprocating pump drives is quite unique.
ACD has built oil lubricated drives in three configurations
for several decades, each working well when applied
correctly. These three configurations are internally splash
lubricated, internally pressure lubricated, and externally
pressure lubricated. Internally splash lubricated drives are
effective in applications where duty is intermittent, with
somewhat frequent starts and stops, and where usage is
relatively low. The frequent starts and stops are critical, as
all of the oil in the lubrication system is contained
entirely within the drive, and over time this oil will begin
to heat up to unacceptable levels, requiring the pump to
stop operation to allow the oil to cool. This splash system
does not typically provide the same level of lubricant flow
as a pressurised system, so the relative load rating or
relative life rating of the equipment is typically reduced.
Splash lubrication systems are typically used in static
environments, as dynamic environmental factors, such as
Figure 3. Shipboard high pressure fuel supply system.
22 March 2017
the listing and rolling of a ship, may cause the oil in the
pump casing to slosh to one side, potentially starving one
or more drive cylinders of oil and reducing overall drive
life.
Internally pressure lubricated drives are similar to
splash lubricated drives in that all of the lubricating oil is
contained within the drive casings of the pump. Oil
pressure is provided via a crankshaft mounted oil pump.
This is advantageous as it forces lubricant into the
bearing surfaces in the drive, allowing for higher relative
drive load and life ratings. These drives are well suited for
intermittent duty at relatively high loads. As with the
splash lubricated drives, they do require a certain amount
of downtime to properly cool, and are best suited to static
environments, as dynamic environments could potentially
starve the oil pump pickup. These systems are suited well
to operating conditions with narrow speed ranges, as the
oil flow and pressure are dependent on the speed of the
pump drive.
Externally pressure lubricated drives have the distinct
advantage of being able to condition the lubricating oil
under all conditions. Relative load and life ratings on
these drives are high, and their physical size is relatively
small for their output ratings. Oil is constantly filtered,
and is maintained at optimum temperature using cooling
and heating systems that are built into the lube pack,
helping to extend the life of the pump drive to its
maximum potential. The lube system provides consistent
oil pressure, regardless of pump drive speed. The addition
of subsystems requiring lubrication, such as gearboxes,
becomes a simple task, as lubricant can be piped to these
subsystems with relative ease. The reservoirs of externally
lubricated systems increase the retention time of the oil
and provide a total aversion to oil pump starvation,
regardless of the list and roll of the environment. These
characteristics make externally pressure lubricated drives
very well suited to continuous duty applications in
dynamic environments.
There are many determining factors to be considered
when selecting a lubrication system. There is not a correct
and incorrect way, per se, as there are likely multiple
options available as
solutions to each
application. However, for
each application, there is
always a better or best
way. For example, there
are many features from
an external lube system
that can be integrated
directly into a drive, but
would not be for
practical purposes, such
as cost and physical size.
Building a drive with the
size and complexity
necessary to accomplish
all of these things is
likely to be far less
cost-effective and much
larger and heavier than
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Figure 4. Land-based high pressure fuel supply system.
building a purpose-built lube system that achieves the
same things.
System design, installation and
commissioning
Although each application takes a somewhat different
approach, the goal is always the same: delivery of high
pressure natural gas to the fuel rail of an ME-GI engine.
Installations are typically applied in two distinct ways,
the first being aboard a ship as a fuel supply system for
the main engine, and the second being a land-based unit
as a fuel supply system for engine testing at an engine
manufacturers test stand.
Shipboard systems are required to comply with marine
classification society rules, the largest of which are the
American Bureau of Shipping (ABS), DNV-GL, Bureau Veritas
(BV), and Lloyds Register (LR). As applied specifically to
the high pressure fuel gas system, these rules focus
primarily on engineering practices, particularly for pressure
vessels and piping, material selection, and electrical
devices. Pressure vessel and piping design is subject to
review by the classification societies, each having their
own specific sets of rules to comply with. As an example,
one of the most significant departures from typical high
pressure piping design for reciprocating pumps came from
the requirements of DNV-GL Part 5, Chapter 7, subsections
8.2 through 8.3, which specifically disallow screwed
connections in the main process line in favour of butt
welded piping and weld neck flanges, resulting in a new
piping design that ACD has since employed on all of its
shipboard high pressure fuel gas systems.1 Materials are
carefully selected to combat exposure to marine
environments, resulting in many components being
manufactured from specific grades of low carbon austenitic
stainless steel. Electrical components, such as motors,
transmitters, and conduit fittings, are subjected to
heightened levels of testing to prove their robustness
against the harsh environment of a ship (Figure 3).
24 March 2017
While not a
requirement of
classification societies,
shipboard systems
typically (although not
always) utilise two
identical pumps, each
capable of meeting 100%
of the engine fuel
demand. This is done
purely for redundancy,
and the pumps do not
operate at the same time.
Once construction is
complete, a factory
acceptance test (FAT) is
performed, during which
time a class society
representative inspects
the build quality and
functionality of the
system before granting it certification. The final test for
this equipment happens during gas trials, in which the
ship has already gone through its initial sea trials, and is
now ready to test the high pressure fuel gas system.
During this test, ACD engineers and technicians are
present, as are representatives from the engineering,
procurement and construction (EPC) contractor and engine
manufacturer. In this phase, the overall fuel gas system is
operated through its range to ensure proper and reliable
functionality before being granted final class society
approval.
Land-based systems are typically not required to
comply with classification society rules, resulting in a
somewhat different system design, although with the same
result (Figure 4). Standard fitting types and material
selections for high pressure cryogenic service are utilised,
as are standard explosion proof or intrinsically safe
electronics and electrical devices. Land-based systems are
designed to test the smallest to the largest engines, and,
as a result, there are typically multiple pumps in a system
that can be operated singularly or simultaneously to
achieve large flow ranges or turndown ratios. Though
these systems will initially be operated primarily on LNG,
they have been designed to pump fluid to pressures as
high as 500 bar for future applications in other light
hydrocarbons, such as ethane and ethylene.
Conclusion
As LNG and other light hydrocarbons continue to prove
themselves as clean, safe, and reliable fuels, technology
and infrastructure will continue to develop to support the
endeavor. As the industry grows, it is important to continue
developing and investing in the next generation of
purpose-built marine grade high pressure equipment.
Reference
1. DNV-GL Rules for Classification: Ships (RU-SHIP),
(October 2015).
 LOWERING
EMISSIONS

Koichi Nishifuji
, Class NK, Japan
discusses altern ,
ative fuels and
SOx emission re N Ox and
duction technol
ogies.

mendments to MARPOL Annex VI entered into force

A on 1 July 2010, bringing in increasingly stringent

requirements for nitrogen oxide (NOx) emissions from
ships in a step-by-step basis. In particular, the Tier III regulations
on NOx emissions that come into force in 2016 strengthen the
regulations significantly, specifically by lowering the permitted
limits by 80% from the levels under the Tier I regulations and
by approximately 75% from those under the Tier II regulations.
It is difficult to achieve the compliance solely by taking the
conventional measure for the engine itself. It is now essential

25

Figure 1. Sakigake, the first LNG-powered tugboat in Japan.
Figure 2. Schematic example of the SCR system.
to introduce additional technologies, such as exhaust gas
after-treatment technologies, etc. Ships are now subject to
a maximum limit on sulfur contents of 3.5% m/m for fuel
used from 1 January 2012 on the open sea, and have been
subject to a maximum limit on sulfur contents of 0.1%
m/m when operating in an Emission Control Area (ECA)
since January 2015. A maximum limit on sulfur contents
of 0.5% m/m for fuel used from 1 January 2020 on the
open sea was adopted at the 70th session of the Marine
Environment Protection Committee (MEPC70) in October
2016. Under these regulations, interest is growing in the use
of alternative eco-friendly fuels, such as natural gas, methanol
or conventional fuel oils with NOx and SOx emission reduction
technologies, such as an exhaust gas after-treatment
technology.
Studies are frequently carried out on LNG-fuelled ships
with the aim of reducing environmental loads in the
international shipping arena. To date, engines solely using gas
fuel and dual-fuel engines that use both gas fuel and
conventional fuel oil have been developed. These gas fuel
engines are classified into two types. The pre-mix combustion
type is characterised by the forced ignition of the pre-mixture
of gas and air. The other is the diffusive combustion type, like
that of diesel engines, where high pressure gas is injected
directly into cylinders. Pre-mix combustion types burn a
uniform lean fuel-air mixture to lower the peak combustion
temperature and thereby independently comply with the
Tier III regulations. Diffusive combustion types that directly
inject high pressure gas require the combined use of selective
26 March 2017
catalytic reduction (SCR), exhaust gas recirculation (EGR) or
other NOx reduction technology in order to meet the Tier III
regulations.
Independently achieving the Tier III limit, four-stroke
pre-mix combustion type gas fuel engines have been broadly
developed and commercialised. These engines have so far
been installed on LNG carriers, coastal ferries and workboats
in northern Europe.
Sakigake, the first tugboat to be powered by LNG in Japan,
has been operating in Tokyo Bay since entering service in
August 2015 (Figure 1). The successful service record of the
ship as a pilot project is expected to promote the spread of
LNG-fuelled ships throughout Japan.
Diffusive combustion type two-stroke engines have
recently been used on a containership operating in
North America and a car carrier operating in Europe, as well
as a pre-mix combustion type two-stroke engine on a product
tanker. Long-stroke, low-speed, two-stroke engines with high
efficiency may be used as high output engines. Therefore,
these types of engines are anticipated to be used especially in
large ships in the future.
Methanol (methyl alcohol) is well known as a fuel for cars
and similar engine applications. It is readily available
worldwide and every year over 70 million t are produced
globally. The main feedstock in methanol production is
natural gas. Methanol could be a 100% renewable material, as
it can be produced from a variety of renewable feedstocks or
as an electro-fuel. Methanol is very similar to marine fuels,
such as heavy fuel oil (HFO), because it is also a liquid.
Handling and installation of a liquid like methanol has clear
advantages over gas or cryogenic fuels regarding fuel storage
and bunkering. However, due consideration is required as
methanol is a low-flashpoint and highly toxic fuel.
Methanol fuel produces no sulfur emissions and very low
levels of nitrogen oxide emissions. It is, therefore, compliant
with current SOx emissions reduction measures, such as ECAs.
So far, methanol ships have been powered by diesel concept
engines, which run on both methanol and marine diesel. To
reduce NOx from a diesel-fuelled engine to Tier III levels,
there is a need for additional installations, such as SCR or
EGR.
The first retrofit project involving an existing
medium-speed four-stroke engine on board the passenger
ferry has been delivered in 2015. Oil/chemical tankers
equipped with two-stroke dual-fuel engines using methanol
and heavy oil as fuels were built in Japan and South Korea in
2016, and are currently in service.
SCR technology is designed to selectively promote the
reduction reaction between NOx and a reductant agent
through catalysis to decrease the NOx level in the exhaust gas.
Figure 2 shows the schematic of an SCR system using an
aqueous solution of urea as the reductant agent. It is said that
the SCR technology can lower NOx emissions by at least 90%
without combination with any other technology for NOx
reduction. It is an after-treatment technology unrelated to the
combustion process in the engine, which means that this
technology has only a minor impact on the fuel efficiency of
the engine itself. However, it entails higher operation costs,
due to the need for a reductant agent.
A large number of manufacturers have already developed
the systems for four-stroke engines. Engines of this kind have
been introduced to more than 500 ships mainly in
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 Norway which has a system of taxation on NOx
emissions and other European countries. With a lower
exhaust gas temperature than four-stroke engines, two-stroke
engines have been developed for commercialisation.
With SCR systems, a space for the installation of a reactor
must be secured. Especially for a main engine, the reactor
tends to be very large in size, and it is vital to study the
structural strength supporting its weight.
EGR technology is a method that recirculates part of the
exhaust gas after combustion to the combustion chamber. Part
of the exhaust gas is separated and passed through an
exhaust gas cleaning system called the scrubber. After that, it
is mixed with the scavenging air. The mixture of air and
exhaust gas lowers the oxygen concentration in the
combustion chamber and raises the concentration of CO2 with
a higher specific heat. As a result, combustion is slowed and
the gas heat capacity in the combustion chamber rises to
lower the combustion temperature and thus decrease the NOx
emission level. It is said that an EGR system alone can cut NOx
emissions by 70 80%. A measure to achieve compliance with
the Tier III NOx regulations with the use of an EGR system
alone or with the combined use with other reduction
technologies is currently being studied. In comparison with
SCR technology, EGR systems may be operated under low
exhaust gas temperature conditions. However, the recirculated
gas contains SOx and particulate matter (PM), which may carry
risk of corrosion in the combustion chamber and the
scavenging air line, the abnormal abrasion of the piston ring
and the cylinder liner, and the deterioration of the cylinder oil.
To address these problems, a two-stroke engine with an EGR
system is also equipped with a water treatment unit that
cleans the separated exhaust gas with the scrubber.
Development of EGR systems is conducted mainly by
licensors of two-stroke engines. According to press releases
and presentation materials from individual companies, high
pressure EGR systems were installed on five actual ships on a
trial basis as of the end of July 2015.
Considerable additional devices are required for a
conventional engine when applying an EGR system. These
include a water treatment system, a collecting tank unit for
receiving drainage from the scrubber and a storage tank of
NaOH for controlling of the washwater pH. Their arrangement
in the engine room is equally important. In particular, the
Figure 3. Example of open loop type SOx scrubber.
28 March 2017
collecting tank unit may have to be placed on a tank top that
is sufficiently lower than the EGR scrubber according to the
manufacturers recommendation and, in this event, it is to be
noted that the stern form may be affected.
SCR technology is considered a promising a solution for
achieving four-stroke diesel engine compliance with Tier III
regulations. For two-stroke diesel engines, both SCR
technology and EGR technology are options. It is necessary to
determine whether to introduce the SCR system or the EGR
system to a two-stroke main engine in consideration of the
pros and cons of the two different systems. It is generally said
that the EGR system tends to cost more in operation than the
SCR system due to the consumption of aqueous solution of
urea. The EGR system is higher in terms of the initial
introduction cost than the SCR system for a small or medium
sized engine with an output of nearly 15 000 kW or less. The
adoption of a SCR system for a two-stroke main engine is
thought to bring some advantages, including compliance with
the Tier III regulations, using the same technology as the
four-stroke auxiliary engine and share of the urea supply unit.
A decision must be made on whether to choose the SCR
system or the EGR system in overall consideration of the ship
type, the hull form design and the ratio of sailing within the
ECAs, among other aspects.
With respect to the use of LNG fuel for complying with
the Tier III regulations, LNG fuel supply equipment, including
fuel tanks, generally tends to entail high initial costs, but the
use of LNG fuel will also serve as a solution to comply with
the SOx regulations described below. Depending on the price
of LNG fuel, this approach could be more advantageous in
terms of operating cost than the measure focusing on diesel
engines to achieve compliance with the Tier III regulations.
Accordingly, depending on the development of the LNG
bunkering infrastructure on the sailing routes, the use of LNG
fuel is also considered to be one of the promising methods of
complying with the Tier III regulations.
For the purpose of complying with the SOx regulation, it
is presumed that distillate fuel oil, such as marine gas oil
(MGO), will be used as low sulfur fuel oil. In this case, the
following issues are considered in comparison with the use
HFO:
z Low viscosity may increase leakage from sealed parts of
the fuel pump and cause fuel supply shortages.
z Poor lubrication properties may result in the abnormal
wear of the plunger, barrel and other components of the
fuel pump.
z The volatility point is so low that the fuel oil may
evaporate in the high temperature fuel oil pipe at the
time of changeover from HFO, which may cause a vapour
lock and other problems.
z The low flash point and low volatility point increase the
risk of flashback after the leakage of fuel in the boiler
furnace.
z As lower sulfur content in fuel oil means a lower content
of sulfuric acid (H2SO4) generated by combustion in the
diesel engine, the use of any cylinder oil with a high
alkalinity value may generate some sediment that will
cause the abnormal wear of the cylinder liner.
 The following shows the main countermeasures to cope
with these issues. Modifications must follow the
recommendations of the equipment manufacturers.
z Equipment with a spare pump or installation of the
additional fuel pump designed for low viscosity for
ensuring a sufficient level of fuel oil supply.
z Installation of a fuel oil cooler to attain the viscosity level
recommended by the diesel engine manufacturer.
z Establishment and implementation of appropriate
procedures for switchover from heavy oil to distillate fuel
oil.
z Use of cylinder oil with the alkalinity level recommended
by the diesel engine manufacturer.
z Duplication of a fuel shut-off valve to prevent fuel leakage
in the boiler furnace.
z Duplication of flame eyes for improving detection
capabilities for burner flame out of the boiler.
z Ensuring a sufficient level of fuel injection rate in the
boiler by replacing with a burner compatible with low
sulfur fuel oil, loading with a spare fuel oil burning pump
or adding a fuel oil burning pump designed for low
viscosity fuel oil.
The achievement of compliance with the regulations with
the use of an exhaust gas cleaning system (SOx scrubber) for
reducing SOx emissions, instead of the use of fuel oil with a
sulfur content concentration compliant with the regulations, is
acceptable as an equivalent measure if it is approved by the
flag administration. SOx scrubbers are divided into two
different types; wet SOx scrubbers and dry SOx scrubbers. For
marine use, wet SOx scrubbers, which clean exhaust gas with
the use of washwater, such as seawater and/or fresh water
with caustic soda (NaOH) added, are generally employed. SOx
scrubbers remove approximately 98% of sulfur contained in
exhaust gas. With this capacity, they will be able to desulfurise
exhaust gas emitted when using fuel oil with a sulfur content
concentration of 3.5% m/m to decrease the concentration to
the level equivalent to that of when using low-sulfur fuel oil
with a sulfur content concentration of 0.10% m/m. This can
purportedly remove 70 80% of PM. Wet SOx scrubbers are
further classified into three types: the open loop type; the
closed loop type; and the hybrid type. With the use of
seawater, the open loop type is premised on operation
involving washwater discharge to the outside of the ship.
Figure 3 shows an example of the open loop type system.
The introduction of SOx scrubbers is now aimed mainly at
complying with the regulations with a sulfur content
concentration limit of 0.1% in ECAs, which have been in force
since 1 January 2015. They are adopted particularly for many
ferries and roll-on/roll-off (RoRo) ships operating in the
Baltic Sea and the North Sea. According to reports of the
Baltic Ports Organization (BPO), as a result of the survey for
nine Baltic Sea and North Sea RoRo ship operators in
March 2015, on average, 40% of their ships in operation had
already been equipped or were scheduled to be equipped
with SOx scrubbers.1 Another BPO material confirmed that SOx
scrubbers had been introduced to 75 ships worldwide as of
the end of 2014, and predicted that the number of ships with
SOx scrubbers would grow to over 160 in 2015.2 To date,
many cases of adoption have been seen in Europe. In the
future, it is anticipated that there will be more cases of
adoption outside Europe in a bid to satisfy the regulations
imposing the sulfur content concentration limit of 0.5% in
global sea areas that will come into effect in 2020.
As for the practical measures for compliance with SOx
regulations at present, use of conventional fuel oils, such as
MGO or HFO with a SOx scrubber, and alternative fuels, such
as LNG or methanol, are considered. For optimal
applications, a total cost evaluation, including initial or
conversion cost and operational cost, availability of the fuel,
and maintainability of the engines, must be comprehensively
considered. In general, MGO will be the most expensive out
of the fuels expected to be used in the future, while the
initial set up costs for MGO equipment will be the cheapest.
The overall cost depends on the initial costs of each type of
system and the price difference of the fuels they use
compared to MGO, which will determine how quickly the
initial cost increments can be recovered. Essentially, the
price trends of fuels in the future will greatly affect the
overall cost performance. Taking the recent downward price
trend of fuel oils into account, it is most frequently reported
that use of HFO with scrubber has advantage on the total
cost evaluation because of the shortest payback period
compared to use of LNG or methanol as a fuel.
Use of LNG as a fuel needs significant cost investment
for installations, especially fuel tanks and fuel gas supply
systems for cryogenic service, as well gas-fuelled engines
equipped with a fuel gas combustion system. It is a suitable
measure in the areas where lower priced LNG fuel is
available and LNG bunkering infrastructures have been
developed. It also has an advantage on the potential
compliance with NOx Tier III regulation in case pre-mixed
lean burn combustion type engine is applied. For these
reasons, the introduction of LNG-fuelled ships is growing
worldwide, especially in ECAs, such as northern Europe and
North America.
Recent fuel prices trends show less price difference
between methanol and MGO in equivalent calories. However,
the use of methanol as a fuel has potential for ships
operating in SOx ECAs due to lower initial costs, easy
handling as a liquid fuel and availability of infrastructure
compared to LNG.
With increasingly stringent NOx and SOx regulations, the
application of exhaust gas emission reduction technologies
using conventional fuel oils and alternative fuels are
already available. Recent downward price trends of fuel oils
and the use of conventional fuel oil with emission reduction
technologies are generally considered to have an advantage
in economic efficiency. However, depending on the future
trends of fuels prices, the difference on the local market and
development of the infrastructure, introduction of
alternative fuels, such as LNG and methanol, is expected to
spread worldwide.
References
1. Methanol as a Marine Fuel Report, FCBI Energy.
2. Latest Movements of Regulations on NOx and SOx
Emissions from Ships and ClassNK Activity, ClassNK.
March 2017 29
 US LNG:
The Eagle
has landed

30

Andrew Walker,
Cheniere Energy, Inc., USA,
details the changing US LNG
picture and outlines the
impact of the Sabine Pass
export project.
he Sabine Pass LNG export project shipped its first cargo
T of LNG on 24 February 2016. This represented not only
the first commercial export of domestic natural gas from
the contiguous (the lower 48) US in the form of LNG, but also
the start of a ramp-up in production capacity that is expected
to make the US the third largest LNG exporting country by
2020. It also marked the entry of new liquefaction player,
Cheniere Energy, Inc., into the LNG production business. In this
article, the impact that the Sabine Pass LNG export project is
having on the LNG industry, and where its volumes have gone
so far, will be considered.
The Sabine Pass LNG export project was sanctioned in
August 2012. It took less than four years to complete
construction on the first train, which commenced production and
shipment of LNG commissioning cargoes in February 2016.
Train 2 commenced production and shipment of LNG a few
months later and reached substantial completion (was handed
over to Cheniere Energy, Inc. by the EPC contractor) in
September 2016, so that, as of the date of this article, the
Cheniere group has two trains exporting LNG from the US
lower 48. In addition to those two trains, the Cheniere group
has one train in the process of commissioning (Sabine Pass
Train 3) while another 11 trains are under construction by the
Cheniere group and various other liquefaction players across a
total of five projects in the US, plus a sixth project at Elba Island
is now undertaking initial site preparation. However, it seems
unlikely that US LNG export growth will stop there. There are
many projects in various stages of the permitting process
(Figure 1) competing to reach sanction, as well as the potential
for further expansion of the five projects already under
construction.
US LNG exports a global game
changer for LNG
The current wave of US capacity began changing the LNG
industry even before the first train at Sabine Pass exported its
first cargo. Chenieres sales are based on a price comprising a
fixed price component and a fee linked to Henry Hub (HH) for
that quantity of LNG actually delivered, offering full destination
flexibility and, in most cases, providing buyers with full volume
flexibility by electing to cancel/suspend LNG deliveries, with
31
 the buyer only paying the fixed price component. Until that point,
long-term LNG contracts were more usually priced in relation to
crude oil, were destination specific, and had little volume flexibility.
Typically the DQT option of traditional long-term LNG contracts
allows volume flexibility down to approximately 90% of the
contracted amount before TOP obligations apply. The US export
projects offered LNG buyers price diversification, plus much more
flexibility and optionality than had been the industry norm up until
then.
This change in commercial approach for US volumes
resulted from the fact that the exports were based on gas
sourced from a deep and liquid market-place, not as a process
for monetising specific, otherwise stranded reserves. What the
US offered an LNG project developer was a completely
disconnected upstream resource. US LNG export projects could
be developed by infrastructure or utility players alone with no
need to work with major oil and gas companies to develop the
upstream gas for the liquefaction plant. Another advantage,
initially, was that existing LNG import terminals could benefit
from cost savings compared to a completely newbuild
liquefaction plant, given they already had a cleared site, a jetty
and LNG storage tanks. For these reasons, the industry saw new
entrants to the LNG liquefaction space in the US projects;
Cheniere, Sempra, Dominion, Michael Smith and partners, and
many more currently in various stages of project development.
The lower barriers to entry of setting up a US LNG project have
led to over 300 million tpy of projects currently being proposed
(excluding projects already sanctioned). The competitive cost of
Sabine Pass construction facts
Construction on Sabine Pass began August 2012.
As of December 2016:
Train 1 and 2 have reached substantial completion.
Train 3 is commissioning.
Train 4 and 5 are under construction.
At the peak of construction, there were over
5000 people working on the project and, when
construction is completed, approximately 50 million man
hours will have been spent.
Each train is over 1300 ft long more than
three American football fields.
Combined, the components of the five trains
currently operating and under construction would
require:
337 000 yd3 of concrete.
75 000 t of structural steel.
345 miles of pipe.
2415 miles of electrical cable that is enough
cable to stretch across the US from California to
Florida.
The gas-fired turbines used to power the refrigerant
compressors at the Sabine Pass facility were first
developed as aeroplane jet engines. The 30 turbines in
the five LNG trains are furnished by GE and generate
enough thrust to fly seven Boeing 747 airliners.
Figure 1. US LNG export projects FERC status (as of
October 2016). Source: US FERC, DOE, and press reports.
32 March 2017
building liquefaction infrastructure in the US, in comparison to
other global locations, is shown in Figure 2.
In addition to US LNG projects being able to offer greater
flexibility and optionality because of the disconnected upstream
resource, they can also offer buyers an opportunity to reduce their
exposure to potentially rising oil prices and oil price volatility.
The expected low cost of US gas production versus many
international sources combined with the lower cost of construction
puts US LNG at the lower end of the cost curve for new LNG supply.
In addition, the latest long-term forecast by the Energy Information
Administration (EIA) and various other industry consultants indicates
that they expect oil price will rise in future at a much greater rate
than US domestic gas prices. This suggests that for any sales indexed
to crude oil, buyers are risking exposing themselves to increasing oil
prices in the future (Figure 3).
As an additional benefit, the price of gas in the US is determined
by a highly competitive market in a country with a stable economic
and political environment, which should make it less subject to
geopolitical turmoil or OPEC influence than crude oil. As a result, the
US exports provide buyers with the opportunity to diversify away
from the oil-linked pricing that characterised the LNG market in the
past. The US pricing proposition also offers a less volatile price via its
structure. Whereas oil-indexed contracts are nearly 100% exposed to
the movement in oil price the fixed and variable component of US
LNG pricing means that only about half of the total price is exposed
to movements in the US gas price.
Finally, current non-US LNG projects rely on dedicated supply
sources for the feed gas, which can be impacted by production or
transportation problems or reserves uncertainty. US LNG on the other
hand is sourced from a vast resource base of 2853 trillion ft3 1 from a
diverse set of basins and connected via the most developed gas
network in the world. For example, Chenieres Sabine Pass
liquefaction project is connected with at least three pipelines to the
gas network, compared to the usual single pipeline from a single gas
field.
Although US LNG exports have already changed the LNG
landscape in terms of the commercial construct available to buyers,
their impact on the structure of the LNG trade is expected to increase
as the supply currently under construction comes online and
increases the amount of flexible volume in the LNG market place
as well as potentially the liquidity of the LNG market place.
Once all of the US LNG projects currently under construction
come online it is expected that there will be nearly 65 million tpy of
LNG being produced, with nearly 60 million tpy coming out of the US
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 Gulf Coast and approximately 5 million tpy from the US east coast.
This is expected to make the US the third largest LNG producer
worldwide representing nearly one-fifth of total volume by 2020
(Figure 4). Given the destination-free characteristics of offtake
agreements for the US, this will represent a significant increase in
the amount of destination-flexible volumes available to the industry.
The volume of LNG that will be coming out of the US Gulf Coast,
on a flexible basis from a compact geographical area across a wide
spectrum of buyers, also opens up the possibility that a traded US
Gulf Coast, FOB spot contract could develop essentially a supply
hub for trading LNG with cargoes offered on a prompt basis.
Although no measures of the flexibility or liquidity of the LNG
trade currently exist, the volume of LNG sold on contracts with
duration of four years or less, measured and quoted annually by
GIIGNL, is often taken as a general proxy of the growing spot and
short-term nature of the industry. This has grown from almost
US LNG exports 2016
Nearly 4 million t (56 cargoes) were exported in
2016.
A majority of the LNG has gone to Latin America
(nearly 60%), while only 10% was delivered to
Europe.
The first LNG tanker through the Panama Canal
was transporting a cargo from Sabine Pass to
China.
Asian buyers represent approximately 50% of the
long-term offtake contracts signed against all of
the US projects under construction although only
19% of US LNG deliveries this year.
Figure 2. Liquefaction plant EPC costs. Source: Poten &
Partners.
34 March 2017
nothing at the beginning of the 2000s to approximately 30% of
volumes for 2015. Cheniere estimates this measure could be as high
as 50% by 2020, based on the coming US volumes, although
realistically the pace and extent of this evolution is yet to be
determined.
Summary
US LNG has barely started up and yet it has already changed the
market by introducing HH-based LNG supply, as well as destination
and volume flexibility, into LNG contracts. Its indirect impact on the
market was felt even before the first LNG ship had left the lower 48.
As volumes from the US continue to ramp-up, the change in the LNG
industry will be even more profound. Nobody can predict the extent
of the impact US LNG will have on the global LNG market, but it is
clear the market and most importantly the customers will benefit
from it by having more choices across suppliers and price indexes
and more flexibility in their contracts.
This article is partly based on a chapter in the forthcoming
publication The Role of Gas in the EUs Energy Union edited by
Christopher Jones, due to be out April 2017.
References
1. Potential Gas Committee, 2015.
Figure 3. EIA and consultant outlooks for HH and oil price
to 2030. Sources: Actuals Heren, IPE, Petroleum Association
of Japan and Bloomberg (September 2016); Forecasts EIA,
Wood Mackenzie, IHS CERA, and PIRA (2016).
Figure 4. LNG supply the US is expected to be the
third largest LNG producer by 2020. Source: Cheniere
interpretation of Wood Mackenzie data (2Q16).
DELIVERING ON GROWTH
AND CHANGING THE MARKET

With the start-up of exports from our Sabine Pass liquefaction project
in 2016, Cheniere Energy, Inc. is now on its way to becoming a major
LNG producer. By 2019, we expect to have seven liquefaction trains in
operation across our two U.S. Gulf Coast LNG export projects making us
one of the largest LNG sellers in the industry.

The destination flexible cargoes from our facility are changing the LNG
trade, as they reach destinations worldwide and help our customers
manage their gas markets. With two further trains fully permitted and
ready to build, our growth is set to continue as the global demand for
clean-burning LNG continues to grow.

www.cheniere.com
 Creating an
integrated maritime
industry in
Q
QATAR

36
 Nakilat, Qatar, present
their involvement
across the LNG supply
chain in Qatar.
akilat plays an integral role in Qatars LNG value chain,
N which is the backbone of the countrys economy. The
company was established in 2004 as the shipping arm
of Qatars LNG sector, to own, operate and maintain a fleet of
gas carriers to transport Qatars LNG and bi-products worldwide.
The company has expanded its fleet over the years to meet
the demands of the State of Qatars gas exports globally. At
present, Nakilat has the largest LNG shipping fleet in the world,
comprising of 63 LNG carriers. The company also co-owns four
large LPG carriers, which are operated by its in-house ship
management arm, Nakilat Shipping Qatar Ltd (NSQL).
Aerial view of the Erhama Bin Jaber Al Jalahma Shipyard.
Of Nakilats 63 LNG carriers, 25 are wholly-owned while the
remaining 38 are jointly-owned with other reputable shipping
entities. They are either operated by NSQL, Shell International
Trading and Shipping Co. Ltd (STASCO), or through joint venture
(JV) operators, such as MOL, NYK, K-Line, Maran Gas, Pronav and
Shipping Corp. of India; and deliver LNG to 23 of the 26 LNG
terminals worldwide.
The companys LNG carrier fleet is one of the youngest in the
world, averaging seven years, and is among the most modern and
advanced fleets around, incorporating the use of modern
technology to ensure the safe, environmentally sound and
37
 cost-effective transportation of gas. Nakilats LNG carriers have a
combined carrying capacity of over 9 million m3, which is
approximately 15% of the world capacity.
Nakilat has long-term charter contracts in place with local gas
producers Qatargas and RasGas, which gives it a solid ground for
growth and development, and also with international oil and gas
players, such as Shell, ExxonMobil and Gunvor for LNG and LPG
shipments.
The companys business portfolio extends beyond shipping to
also include a comprehensive range of maritime services.
In 2007, Nakilat was mandated to manage the design and
construction of a ship repair and construction yard in the
State of Qatars Port of Ras Laffan. Today, Nakilat operates the
world-class Erhama Bin Jaber Al Jalahma Shipyard through its two
strategic JVs, Nakilat-Keppel Offshore & Marine (N-KOM) and Nakilat
Damen Shipyards Qatar (NDSQ). It also provides shipping agency
services through Nakilat Agency Co. (NAC) for all Qatari Ports, as well
as towage and other marine support services through its JV
Nakilat SvitzerWijsmuller (NSW) for vessels in Qatari waters.
Fleet expansion
Being located in Qatar, currently the worlds top exporter of LNG,
gives Nakilat an outright competitive advantage. The company
has direct access to and has built-up expertise on LNG shipping
management. Nakilats involvement across the LNG supply chain,
starting with ship owning and management to dry docking and
repairs, agency and logistical support, as well as towage services,
places it in a unique position to closely monitor and control
these processes, thus ensuring the safety and integrity of cargo
transportation from Qatar to the rest of the world.
Nakilats fleet has progressively expanded since its inception.
The company acquired three new LNG carriers in 2015 and one LNG
carrier in 2016 through its JV with Maran Ventures Inc.,
Maran Nakilat Co. Ltd. All four LNG carriers are tri-fuel diesel electric
(TFDE) propulsion models with capacities between 159 800 m3 and
174 000 m3. The acquisition of these four LNG carriers brings
Nakilats total fleet size to 67 vessels.
The company first started its ship management operations
through NSQL back in 2012, when it took over the ship management
and operations of its four LPG carriers, which are jointly-owned with
Milaha. The success of this transition paved the way for further
expansion in NSQLs ship management role and NSQL later took
over management and operations of four Q-Flex LNG carriers
jointly-owned with OSG in 2014. NSQL has steadily built upon its
experience in ship management over the years in preparation for the
eventual management take-over of Nakilats wholly-owned vessels
in the future.
Figure 1. A Nakilat Q-Max LNG carrier.
38 March 2017
Since the strategic alliance between Nakilat and STASCO was
formed in 2006, there has always been an understanding that
STASCOs management of Nakilats vessels would allow for the time
needed to build-up internal resources, capacity and expertise to
become a fully-fledged, independent shipping organisation.
In October 2016, Nakilat signed an agreement with STASCO for
the management transition of Nakilats LNG fleet from STASCO to
NSQL. This entailed the phased management take-over of 25 Nakilat
wholly-owned LNG carriers by NSQL. By consolidating its ship
management and operations in-house, Nakilat will not only able to
better optimise its fleet operations, but also benefit from the
established synergy with its local charterers and main customers,
Qatargas and RasGas.
Technological advancements
Green shipping and gas systems are the future of the maritime
industry. Nakilat has adopted the latest green technologies
on board to enhance operational efficiency and operate in an
environmentally-responsible manner. A large majority of Nakilats
fleet conforms to stringent safety and environmental requirements,
and have been certified with the Green Award as a testament to
their clean and safe operating systems.
Nakilat has effectively capitalised on its vast expertise in
handling gas carriers and completed the worlds first main engine
gas injection (MEGI) retrofit for a Q-Max LNG vessel to run on LNG
as an alternative fuel. The modified vessel has the worlds first
low-speed marine diesel engines that can utilise forced LNG,
reliquefied boil-off gas (BOG) and heavy fuel oil (HFO) as fuel,
depending on the requirements of the voyage. This is also the first
ever MEGI conversion involving a twin-engine configuration along
with the associated systems, piping and safety shutdown systems
allowing for redundant operations.
The MEGI retrofit conversion project is the first of its kind, and
out-measures similar system installations on newbuildings due to
the complexities involved in integrating this new system with
existing ones on board the vessel. Unlike most newbuildings, the
technology utilises liquid-LNG directly from the cargo tank, which
has also proven to run reliably from reliquefaction condensate
return, giving further flexibility in operation.
The use of MEGI allows a cleaner fuel technology with a
significant reduction in environmental emissions, cleaner burning
engines with potential to increase mean time between maintenance,
provide flexibility of fuel supply to react to market changes and
reduced bunkering activities, which, in turn, will offer operations and
marine risk reduction.
Not only will this pilot MEGI retrofit result in greatly reduced
emissions, but it will also allow the converted vessel to operate with
maximum flexibility in a safe and sustainable manner, enabling the
vessels engines to meet current and future emissions standards set
by the International Maritime Organization (IMO).
In addition to pioneering the adoption of MEGI technology for a
Q-Max LNG vessel, Nakilat has also carried out in-depth studies on
options for the installation of ballast water treatment systems
(BWTS) for its fleet. The company carried out a pilot project for a
BWTS installation on board one of its Q-Max LNG carriers to initiate
and understand the reliability and performance standard of the
system. Nakilat is also working with specialists, training its staff and
having discussions with well-established BWTS manufacturers to
ensure preparedness for the upcoming BWM Convention ratification.
These projects provide examples of Nakilats commitment towards
the sustainable development of the maritime industry delivering clean
energy worldwide in a safe and responsible manner.
 POWER & WATER
Puneet Sharma,
MODEC International, Inc., USA,
describes the companys Floating
Power and Water Solutions
that provide clean water
and/or electrical power more
economically, faster and more
efficiently than conventional
land-based solutions.
solutions
Looking to the future, MODEC realised that:
z Over a billion people do not have access to clean water
and one-third of the world does not have electricity.
z 50% of the worlds population lives near an ocean.
z The global production capacity of LNG will increase
by 50% in the next five years and, of the current fuels,
natural gas is the cleanest source of power.
MODEC currently produces on its production facilities:
z Over 1500 MW of power through gas turbine, steam, and
reciprocating engine based power plants; and
39
 z Over 328 000 m3 of industrial-grade and potable drinking specific generators and water treatment solutions, there
water (to WHO standards). was a demand for a variety of capacities that could not be
covered with a one size fits all approach. So, MODEC
Behind the water and power funded an R&D effort over the last year to study different
concepts power generators, LNG containment systems, regasification,
Therefore, utilising the companys experience in designing, hull forms, electric transmission, and water treatment
building, owning and operating floating offshore systems, systems, which resulted in the development of a series of
including floating production, storage and offloading related concepts, namely:
(FPSO) vessels, floating LNG (FLNG) units and floating z FSRWPTM (floating storage, regasification, water and
storage and regasification units (FSRUs), MODEC decided power).
to invest in R&D and determine if the company could
z FSRwP (floating, storage, regasification and power).
provide clean water and power faster, cheaper and more
efficiently than conventional solutions. z FSRWTM (floating, storage, regasification and water).
MODEC started, as many companies do, with a
brain-storming session with a wide array of engineers and The power generators
market analysts to determine who might need such a Looking at the various technologies MODEC currently
solution, what would be deemed commercially competitive, operates and the mission of producing clean power with
and what the solution might look like. Based on this initial the highest thermal efficiency and lowest carbon footprint,
information, MODEC developed basic concepts which were the company initially developed the power solution using
sense-checked with the market. The company quickly a 30 MW aeroderivative generator that was developed with
realised that while it had extensive experience with a major US supplier in 2008 (see Table 1 for efficiency
comparison of different technologies).
It seemed a natural fit as MODEC currently owns and
Table 1. Efficiency comparison operate 42 such generators which can produce
Efficiency CO2 approximately 43 MW (each) in combined cycle mode. After
Description
(%) (kg/hr/kW) sense-checking the market however, MODEC concluded
that it was necessary to develop larger baseload
Oil and coal
generators using industrial turbines while using existing
Turbo-charged engine 48.7 0.448 aeroderivative design for small scale power plants and
peak shaving applications. To this end, MODEC worked
Conventional engine 33.6 0.743
with major suppliers from Europe, Japan, and the US to
Coal-fired 33.9 0.940 develop the following additional offshore baseload and
Aeroderivative gas turbine peak shaving solutions.

Simple cycle 37.2 0.551 Hulls and LNG storage

Combined cycle 49.5 0.413 Based on market research, MODEC concluded a need for
three generic sizes of solutions.
FSRWPTM-CC 52.1 0.395
As part of this effort, MODEC realised that they were
Industrial gas turbine effectively developing a modified FSRU that could
accommodate a CCGT power plant on its deck. MODEC also
Simple cycle 34.3 0.592
concluded that starting with a conventional FSRU hull
Combined cycle 51.3 0.396 form may not be a cost-effective solution. Thus, by
leveraging the last eight years of work in the FLNG space,
FSRWPTM-CC 53.9 0.396
three uniquely different hull forms using different

Figure 1. FSRwP small (86 172 MW). Figure 2. FSRwP medium (200 400 MW).

40 March 2017
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 newbuild and existing LNG barge/vessel solutions were
developed with integrated LNG containment systems:
z Small As shown in Figure 1, the small solution
utilises a purpose-built barge from MODECs sister
company TGE Marine with 25 000 m3 Type C LNG
storage tanks. This solution is ideal for shallow-water
environments, such as marshes, harbours, rivers and
lakes. The LNG tanks are located inside the barge with
the power generation facilities on deck.
z Medium As shown in Figure 2, the medium
solution utilises a MOSS tanker conversion with up
to 60 000 m3 of LNG storage. This solution is ideal
for small island nations, industrial complexes, coastal
cities and emergency response. In this solution, MODEC
removes two to three of the forward tanks, and locates
the gas-turbine power generation on deck with steam
generation in the space vacated by the MOSS tanks in
the hull.
z Large The large solution, shown in Figure 3, utilises
a Suezmax or VLCC conversion with Type B or Type C
LNG storage tanks. This solution is ideal for countries
seeking either large (400 700 MW) power-generation
plants, or a combination of power and water
production.
Mooring
Due to the diverse nature of the problem, MODEC also
contemplated three potential mooring options, provided
by SOFEC, a MODEC subsidiary, for varying applications:
z Jetty-mooring Least expensive and suitable for
protected areas or nearshore applications where
the water depth is in the range of approximately
7 20 m (as depicted in Figure 1).
z Tower-yoke Slightly more expensive, but ideal for
relatively calm or benign waters where the water
depth is between 20 m and 50 m (as depicted in
Figure 2) and where dredging might be required if
the asset is located at-shore.
z External turret Similar in price to a tower-yoke
and ideal for water depths exceeding 50 m.
This system is also suitable for locations where
the seabed drops off steeply into the ocean (as
depicted in Figure 3).
Electrical transmission
20 years ago, it was impractical to transmit AC power
long distances and subsea power cable technology
was not as advanced as it is today, so an offshore
power plant, such as an FSRwP, was not technically
viable. With the R&D efforts by various companies,
such as ABB and Statoil, in the North Sea for the
oil and gas industry over the last 15 years, it is
now possible to economically transmit AC power
subsea at up to 100 MW over 100 miles through a
single cable. In addition, electrical swivels capable
of transmitting 200 MW at 145 kV make large scale
power transmission from a weather-vaning vessel to
shore viable.

Water treatment
The old ocean-going VLCCs were steam-powered.
In those ships, low pressure steam was utilised to
produce potable water by flashing and condensing
seawater. This technology is not dissimilar to flash
distillation utilised in some onshore desalination
plants. Modern FPSOs use reverse osmosis membrane
technology to produce industrial or potable water,
which is similar to most conventional onshore
desalination plants.
Therefore, MODEC has developed a water only
(through reverse osmosis) or power plus water (flash
Figure 3. FSRWP large (shown with 300 MW of power distillation or reverse osmosis) solution utilising
generation and 200 000 m3/d desalination). technologies already used in old steam turbine vessels
and offshore LoSal or SRU industries.
The main benefits of the offshore desalination
solution are:
Table 2. Power generation options (MW)
z Increased overall thermal efficiency if power and
Generator At 30C
CCGT (1+1) at CCGT FSRwP water production are combined on a single vessel.
30C (1+1) at 30C
z Water sourced offshore and rejected brine discharged
GT-A1 29 42 45
offshore (versus nearshore in case of a land-based
GT-A2 38 61 65 plant) minimising risk to coastal marine life.

GT-A3 59 95 101 Conclusion

And so the Floating Regasification Storage Water and
GT-A4 77 131 140
Power FSRWPTM and derivative FSRwP and FSRWTM
GT-I1 72 112 119 were born. The FRSWPTM is the evolution of an FSRU
(plus water and power) as the FPSO was the evolution
GT-I2 102 175 186
of the FSO (plus production).

42 March 2017
 M E E T I N G
expectations he use of LNG as a fuel for marine main and
Marcel Ott,
Winterthur Gas
T auxiliary engines is rapidly gaining importance
for two main reasons. In spite of a blip caused
by the current low price of oil, forecasts call for
gaseous fuels to take a much larger share of the
& Diesel Ltd, global energy market and to maintain relatively low
price levels. At the same time, the shipping industry
sees the favourable overall efficiency and intrinsically
Switzerland, analyses low noxious emission of lean-burn dual-fuel (DF)
engines burning a zero sulfur fuel as a viable solution
the use of LNG as to compliance with the International Maritime
Organizations (IMO) roadmap for reducing noxious
a fuel for marine and greenhouse emissions from marine engines.
On the medium-speed engine side, the major
manufacturers had ready-made solutions in the form
low-speed engines. of the lean-burn DF engines developed since the

43

Figure 1. Winterthur Gas & Diesel Ltd (WinGD) X-DF engines power range.
Figure 2. The X-DF principle with gas admission (left) and
ignition (right) range.
Figure 3. Gas admission valve (GAV) used on WinGD X-DF
engines.
1990s for use in LNG carriers and stationary power plants.
Adapting DF propulsion technology to other types of vessels
is therefore predominantly a question of devising and
implementing solutions for the on board storage and
conditioning of the gaseous fuel.
On the low-speed engine side, the major engine designers
have responded rapidly to both demands from ship operators
seeking IMO Tier III compliance in Emissions Control Areas
44 March 2017
(ECAs) in all categories
of vessel, and the move
to more efficient LNG
carriers as global
demand for natural gas
increases.
Two schools of
thought have emerged
for gas-burning
low-speed engines:
z Lean-burn DF gas engines with micro-pilot injection and
low pressure gas admission operating on the Otto cycle in
their gas-fuel mode.
z Gas-diesel engines with injection of gas at high pressure
operating on the diesel cycle.
Winterthur Gas & Diesel Ltd (WinGD) is pursuing the low
pressure Otto cycle DF route. Recently acquired 100% by
China State Shipbuilding Corp. (CSSC), WinGD was previously
the low-speed engine business unit of Wrtsil Corp.
The low pressure gas admission technology is designated
X-DF in line with the nomenclature of WinGDs latest
Generation X engines. In a power range from 4.775 to
63.840 MW, the full programme of WinGD engines with X-DF
technology will comprise the 500 mm bore RT-flex50DF, the
520 mm bore W-X52DF, the 620 mm bore W-X62DF, the
720 mm bore W-X72DF, the 820 mm bore W-X82DF and the
largest 920 mm bore (Figure 1).
At the time of writing, the order book for X-DF engines
consisted of 43 firm orders for RT-flex50DF, W-X62DF and
W-X72DF engines, plus a number of options. The orders
include four 5RT-flex50DF engines to power a series of four
15 000 DWT product tankers with DF propulsion bought by
the Danish Terntank line. The first two vessels of the series,
the MT Ternsund and MT Ternfjord have been delivered by
Avic Dingheng shipyard, China, and are thus the first
application of engines with WinGD X-DF technology to have
entered commercial service.
Motivation
The basic rationale for the low pressure Otto cycle route
rather than the high pressure diesel cycle route is an
attractive combination of lower CAPEX based on a smaller,
less expensive inventory of equipment necessary for gas
preparation and emissions reduction, and competitive
OPEX based on the fundamental efficiency of two-stroke
engines and the economy of the lean-burn DF mode already
demonstrated on four-stroke DF engines.
As now demonstrated on test engines and in commercial
use, in their gaseous fuel mode, WinGDs X-DF engines are
characterised by stable combustion and safe operation at high
overall system efficiencies and with power densities
well-suited to their applications. In terms of emissions
compliance, they undercut IMO Tier III NOx limits by a wide
margin without SCR or EGR in the gas mode. Likewise, without
SCR or EGR, the engines comply with IMO Tier II NOx limits in
their 100% diesel mode.
On the CAPEX side, in addition, with the low pressure gas
admission technology, the gas fuelling system does not
require high-pressure compressors, thus considerably reducing
equipment costs, on board energy consumption and
maintenance. Additionally, a large supplier base is available
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 for gas supply elements since components are similar to those
installed on numerous four-stroke DF engines.
Development
Milestones to date in the evolution of the WinGD X-DF engine
range include the start of development on a converted
RT-flex50 diesel engine in 2011 at Wrtsils engine
laboratory in Trieste, Italy. Then, with the concept proven, the
technology was transferred to the larger bore engine types
X62DF and X72DF and a full scale six-cylinder X72DF engine
was started in 2015 at WinGDs licensee and longstanding
development partner Diesel United Ltd in Aioi, Japan. This was
followed in December 2015 by the Type Approval Test (TAT)
carried out on the first engine for commercial use the
five-cylinder RT-flex50DF for MT Ternsund at the engine
builder Yuchai Marine Power Co. Ltd (YCMP) in China.
DF engine systems
Several technologies were capable of transfer from Wrtsil
medium-speed DF engines, although, in some cases, the
transfer required additional fundamental development to
enable the technologies to be used on low-speed two-stroke
Figure 4. Pilot injector and pre-chamber.
46 March 2017
engines. Three key elements of the X-DF concept are its gas
admission, pilot fuel and automation and control systems.
The gas distribution and admission system has been
specifically adapted to two-stroke engines. Gas is distributed
in manifolds along both engine sides to feed each cylinder. To
ensure fast depressurisation, both manifolds are equipped
with a fast shut-off valve on the inlet side and a fast vent
valve at the end of the pipe. All gas-containing pipes are in
double-wall stainless steel to fulfil classification society
requirements.
To feed gas to the combustion chamber, each cylinder
features twin hydraulically actuated gas admission valves
(GAV). They admit gas through the cylinder liner wall directly
into the cylinder at about halfway between the inlet ports and
top dead centre. Gas is thus admitted before compression
starts and a pressure of 10 12 bar suffices to achieve
homogenous air/gas mixing at full engine load (Figure 2). The
system is designed for a maximum pressure of 16 bar to cope
with fuel heating values down to 28 MJ/Nm3 while
maintaining suitable admission times and rated engine
output.
The GAVs are a new design (Figure 3), developed by
WinGD specifically for the X-DF engines. Particular attention
was paid to simplifying the valve concept to maximise
reliability and ease-of-maintenance. Hydraulic power is
delivered from the engines existing servo-oil circuit. For
favourable long-term stability and gas-tightness, a robust
design with a spherical valve seat was chosen. Sealing oil is
used to separate the gas side from the servo oil side, as well
as to lubricate the valve guide.
For increased operational safety, the valves are equipped
with a lift measurement sensor, which allows the engine
control system to take immediate action in case of a
malfunction in the valve or its control signal. For short
downtimes and to reduce the risk of leakage during
maintenance, a cartridge design allows replacement of all the
moving parts without removing the valve housing or the gas
piping system. The GAVs have achieved excellent functionality
and reliability in both rig and on-engine testing.
To ensure reliable initiation of ignition of the lean air/gas
mixture, WinGD has developed a pre-chamber solution for the
X-DF engines (Figure 4). Liquid pilot fuel is supplied to the
injectors by a suitably dimensioned common rail system. The
pre-chamber concentrates the energy of the pilot fuel and creates
a powerful torch that penetrates well into the main combustion
chamber, while using pilot fuel quantities of below 1% of the
total heat released during combustion a level considerably
lower than with other systems available on the market.
For control, all X-DF engines employ an adaptation of the
UNIC-based modular, embedded engine management system
applied on WinGDs latest Generation X diesel engines. On
X-DF engines, the system is complemented by these
additional functionalities:
z Fuel mode transfer to change from liquid to gas engine
operating mode and back during engine operation.
z Control of timing, duration and pressure of gas admission
and pilot injection.
z Control of the turbocharger waste-gate for adjustment of
scavenge air pressure and lambda to the two operating
modes.
z Knock and misfire detection for combustion control and
engine safety.
z Compression and firing pressure balancing to optimise
engine performance by balancing individual cylinders.
z Additional monitoring features for enhanced operational
safety.

Experience in commercial
operation
As with the X-series diesel engines from which they are derived,
ease of maintenance, repair and overhaul were key development
FIVES
targets for the X-DF engines. As well as the input of experienced TECH
service engineers at all major steps of development, and since +
factory assembly procedures closely resemble service tasks,
WinGDs licensee engine builders were also closely involved in
FIVES
the design process. To complete the spectrum, design reviews TEAM
were held with major shipowners and operators.
As stated, the 15 000 DWT MT Ternsund, powered by a
five-cylinder, 500 mm bore RT-flex50DF engine, was the first of
the four Terntank chemical tankers to enter service. The vessel
and engine passed sea trials in May 2016, which included
extended operation in the gas operating mode and a number
of seamless change-overs from gas to liquid fuelling during
engine operation. As stated, the 5RT-flex50DF engine had
passed its TAT at engine builder YCMP, as well as achieving
certification to IMO Tier III NOx compliance in its gaseous fuel
mode and IMO Tier II in its liquid fuel mode.
Following a decision by the owner, during the maiden
voyage to Europe, the MT Ternsunds engine was operated
exclusively on heavy fuel oil (HFO). Upon arrival in Europe at
the beginning of August 2016, cool-down of the LNG tanks and
gas bunkering was undertaken at Europort, Rotterdam, the first
port of call. The crew of the MT Ternsund reported that, despite
the extended operation on HFO, the first transfer to gas
operation went flawlessly. Immediately thereafter, the ship
entered regular commercial operation, which typically comprises
calls at destinations in the North Sea and the Baltic, where LNG
bunkering facilities are available, either from shore-based LNG
terminals or by ship-to-ship (STS) bunkering from small-size
LNG supply vessels.
Up to December 2016, the vessel logged approximately
3000 hours, and since the first gas bunkering the vessel has
been operating on gas for almost 100% of the time. As the first
X-DF engine in commercial use, operation has been closely
monitored by teams from WinGD, Wrtsil Services (leveraging
vast experience from four-stroke DF engines) and Terntank. A
supervision/warranty sailing engineer is also reporting regularly
on the situation on board and on any issues arising during
vessel operation.
So far, only a few minor issues relating to the pilot fuel
system have been reported and the required remedial actions
were taken. As a result, with only one exception, the ship has
been on schedule while running on gas for most of the time.
During operation, the ship has sometimes experienced
rough conditions while on the North Sea, including considerable
wave loading, which the main engine was well capable of
handling in most cases. Overall, therefore, on board its first
commercial application, the performance of the
X-DF engines has met or exceeded the expectations. In
November 2016, the second Terntank ship, MT Ternfjord, followed
MT Ternsund into commercial operation.
 RIGHT
AROUND

THE CORNER

48
 Stuart Nicoll, Maritime Strategies
International, UK, explains why, despite
a bright future, vessel owners must
prepare for changes in trade patterns
and a larger LNG spot market.

he year ahead will see an improvement in fortunes for LNG carrier

T owners, with rising trade and improved rates, according to the latest
research from Maritime Strategies International (MSI). However, the
global glut of LNG is having a structural effect on the shipping market, driving
shorter, intra-basin trade flows and encouraging the development of spot
trading.
In its latest LNG Sector Report, MSI reports a modest increase in vessel
demand in 2016 after three consecutive years of decline, reaching 44 million m3
from 43 million m3 in 2015. Growth is forecast to accelerate between 2017 and
2020, rising by an average of 9% per annum. Post-2020, growth rates are
expected to decelerate to approximately 5% per annum to 2025.

49
 In trade terms, LNG is entering a renewed growth
phase globally, powered by new supplies, low prices and
increasing flexibility in contracts between producers and
consumers. Aggregate trade growth was projected to
total 5.4% y/y in 2016, the highest since 2011.
Trade prospects
MSIs projections for total 2016 LNG trade still
represented a downgrade on its 1H16 estimate. This was
FSRUs: strong interest despite
challenges
Given the depressed earnings environment in the LNG
carrier market, up to a dozen or so gas carrier owners
have been reported as interested in entering the floating
storage and regasification unit (FSRU) market, despite its
high barriers to entry in terms of know-how and/or cost.
MSIs expectation is that up to 30 additional FSRU
projects will be operational by 2020 (half of the total
under discussion), though some of those in the latter
years are likely to be subject to slippage.
Owners of conventional LNG carrier tonnage have
either ordered FSRUs or booked conversions and even
reportedly pursued consolidation opportunities in the
past 12 months.
Demand for FSRUs and fast-tracking of tenders
appears to be so strong that one owner has backtracked
on its newbuilding-only strategy and has embarked on a
LNG carrier conversion project despite previously
claiming these are uneconomical.
However, aspiring market entrants might find that
entering and operating successfully in the FSRU space is
more challenging than they have anticipated, as they
have to adapt their business model and acquire project
management skills that are not within the comfort zone
of traditional LNG carrier owners.
Even experienced market players could at any time
face numerous obstacles and complex challenges
potentially including operational, commercial, regulatory
and infrastructure issues in moving forward with
tenders and deciding which projects are worth pursuing
and investing in.
Figure 1. LNG exporting regions, 2H16.
50 March 2017
necessary because the two largest LNG markets Japan
and South Korea shrank more steeply than anticipated.
Among the top five LNG importers, only China and India
registered growth last year, while Taiwanese imports
stagnated.
On balance, this means that North East Asian imports
grew only marginally in 2016 (by 0.2%), albeit still
healthier than the 4% y/y drop registered in 2015. In the
rest of Asia, India, Pakistan and Thailand imported more
last year, while Singapore, Indonesia and Malaysia
showed stagnation or decline. Middle East importers also
increased their LNG intake, while European imports also
grew at a healthy rate of approximately 6%. The
Americas, by contrast, saw lower import volumes for the
third year in a row.
In terms of exports, growth was primarily
concentrated once again in Asia-Australasia (up 17% y/y
in 2016) due to Australia and Papua New Guinea, but
increases were also seen in the Americas and Africa,
reversing the downwards trend of previous years for
these two regions.
In the Western Hemisphere especially, overall export
volumes were on course to rise by almost 14% compared
with 2015 as the US Gulf Coast continued to ramp up
exports, offsetting declines in Trinidad where feedstock
issues persist. On the other hand, Middle East exports
dropped below 90 million t for the first time since 2010
and Russia and Europe saw their volumes stagnate.
Despite this, the overall tenor of MSIs forecast
remains positive from a trade perspective it expects
approximately 350 million t to be shipped in 2020 and
around 430 million t by 2025, a remarkable growth from
around 250 million t in 2015. The more cautionary aspect
of MSI projections is the ongoing attrition to projects
scheduled for the period beyond 2020, which have been
undercut by the same low price environment that is
boosting trade today.
In an oversupplied gas market, it is clear that
inter-fuel competition, contract flexibility and pricing
will key. The once stellar prospects for gas which
reached their peak with the International Energy
Agencys (IEA) Are we entering a golden age of gas?
report in 2011 are now slightly tarnished.1
There is still downside to the MSI forecast its base
case assumes that utilisation of installed global
Figure 2. LNG importing regions, 2H16.
liquefaction worldwide will drop to just 76% by the during the same period in 2015, according to shipowner
end of the decade. Increasing difficulty in making data. Nevertheless, most owners are actively seeking term
price arbitrage work, greater power for importers to coverage and Greek companies were the most active in
redirect cargoes and, in the US, liquefy-or-pay securing employment for their vessels during the past few
arrangements, mean that there is likely to be a more months of 2016.
volatile, spot-driven market over the next decade, The LNG carrier fleet reached 70 million m3 at the end
which could drive utilisation even lower. of 2016, on the back of deliveries of 5.6 million m3 and
negligible deletions. However, effective shipping supply is
Shipping market lower given that at least 6.4 million m3 worth of shipping
After reaching a low point of US$28 900/d in 2Q16, capacity is either being used as floating storage, floating
one-year time charter rates for duel-fuel diesel engine regasification or is laid-up/idle. After three years of
(DFDE) LNG carriers improved steadily throughout growth, a softening of the number of new vessels entering
2016, reaching US$35 000/d in 4Q16. the market will occur in 2020 and 2021, when deliveries
In 2017, MSI forecasts that rates will fluctuate will drop below 2 million m3 for the first time since 2012,
around current levels with a 7% improvement over the MSI forecasts.
2016 average, despite no improvement in the sector Newbuilding deliveries in excess of 5 million m3/yr for
utilisation rate. For steam turbine (ST) LNG carriers, the next four years will hamper the shipping recovery, as
one-year time charter rates bottomed out in 2Q16 at will the noted near-term shift to shorter haul, intra-basin
US$15 300/d and averaged US$19 000/d in the fourth trading: horizons are narrowing both in terms of vessel
quarter, where they are also expected to remain for charter periods and voyage distances. However, MSI
most of 2017. expects strong trade growth to rapidly improve the fleet
MSI predicts that the recovery in rates seen in utilisation rate from 2019, driving earnings and values
2016 will accelerate from 2019 onwards, pushing the higher by early in the next decade.
next market peak beyond 2020; rates are expected to
be close to US$90 000/d for DFDEs and US$65 000/d Reference
for ST vessels in 2022. This delay to real improvement 1. International Energy Agency, Are we entering a golden
in earnings is due to the high supply growth age of gas?, World Energy Outlook 2011, http://www.
worldenergyoutlook.org/media/weowebsite/2011/
envisioned in the years ahead: more than WEO2011_GoldenAgeofGasReport.pdf
5.5 million m3/yr of shipping capacity is set to be
delivered between 2017 and 2019.
Another trend that became more firmly established
last year is the decline in Qatari exports to
Northeast Asia, boosting shipments to the much closer
market destinations in South Asia, the Middle East and
Turkey. Qatari exports are forecast to stagnate over
the next 10 years, but the destination mix is obviously
bearish from a shipping demand perspective, as
shorter haul journeys replace longer haul ones.
The LNG supply glut has also seen the
continuation of another significant trend, the further
evolution of the long predicted LNG spot market.
LNG buyers and especially big importers that are
over-contracted, such as Japan and South Korea, are
Figure 3. LNG carrier contracting activity, 2H16.
increasingly pushing for destination clauses to be
relaxed or dropped completely, and many companies
have expressed their determination to let contracts
lapse if sellers do not accommodate their demands.
The relaxation of such clauses in some sales and
purchase agreements (SPA) could enhance flexibility
of supply and diversify trade patterns.
It could also exert further downward pressure on
LNG prices as more cargoes would become available
on the spot market, which, in turn, would stimulate
LNG demand. However, at the same time, it could
impact negatively on shipping demand if inter-basin
flows diminish even more due to convergence in
prices undermining arbitrage opportunities.
The spot charter market continued to develop in
2016: during the first nine months, spot fixtures Figure 4. LNG carrier deliveries and deletions, 2H16.
amounted to approximately 210 compared with 130

March 2017 51
 LNG MARKETS:
THE BUMPY
ROAD TO

Anne-Sophie Corbeau,
KAPSARC, Saudi Arabia,
looks at the challenges and
obstacles that the LNG market must
overcome en route to market recovery.

52
 ver two years have passed since oil prices

O dropped, the Chinese economy started to

slow down, Asian LNG demand growth
showed signs of weakness, and the first new
Australian LNG plant (Shells Queensland Curtis)
came online. Added together, these different
elements paint a fundamentally different picture
than what the LNG industry had expected over
the 2011 2014 period. Bullish assumptions on
future LNG demand and prices prevailed then, but
the current picture bears little resemblance to
this optimistic outlook. Additionally, the industry
itself has fundamentally changed, as new players
have entered different parts of the LNG value
chain. These newcomers, along with existing
players, seek to reinvent the rules of a 52-year
old business, albeit for diverse reasons and in
very different ways. Indeed, the road to 2020 and

53
 beyond looks very bumpy for the LNG industry, which needs to
manage short-term uncertainty and ensure its long-term future
in a challenging environment.
Adding 30 million t of LNG
capacity every year
As of early 2017, the gas industry is watching intently for what
will be remembered as the largest incremental LNG capacity
ever seen. Between 2015 and 2020, the equivalent of twice
the LNG export capacity of Qatar (150 million tpy), which is
currently the largest LNG exporter, will come online. To date,
only one-third of this capacity has come online. Considering
that the bulk of capacity growth is yet to come and that, as
demonstrated by Gorgons first train, it can take some time
before plants operate at capacity, the full impact of this growth
is yet to come.
At present, the most obvious outcome is that these
additions have kept spot LNG prices low in both Europe and
Asia, but not dramatically so from an historical perspective.
Asian spot prices remained at US$4/million Btu for a relatively
short period in the spring of 2016, then hovered between
US$5/million Btu and US$10/million Btu since mid-2016.
Obviously, the drop in oil prices has also put significant
downward pressure on LNG contract prices.
Bigger changes still lie ahead. This bulk of the LNG supply
increase will be felt from 2018 onward, after all the Australian
LNG plants and a few US LNG plants have started. By 2020,
new capacity will alter the ranking of LNG exporting countries,
with Australia surpassing Qatar to become the largest exporter,
and Qatar sliding to second place followed by the US. This
shuffle will impact LNG flows, particularly as the expansion of
the Panama Canal offers US cargoes the competitive advantage
of a shorter route to Asia.
If LNG demand does not pick up significantly by 2018, this
capacity growth could keep spot prices low, or even push them
down further. Surplus LNG could be left stranded, and then aim
at the residual European market, where it will face competition
from pipeline Russian gas. This potential glut could create a
particularly harsh environment for those LNG plants that took
final investment decisions (FIDs) when prices were at
US$100/bbl. Now in a glut situation with low prices, sellers
seeking to generate as much revenue as possible are looking
for new markets in countries that were not previously
considered as viable buyers.
Figure 1. Existing and potential LNG importing countries (source: KAPSARC).
54 March 2017
Low prices, added to uncertainties about future LNG demand,
create an environment in which companies hesitate to take FIDs.
Only two projects BPs third train of Tangguh (Indonesia) and
Woodfibre LNG (Canada) have taken FID in 2016. The first is an
expansion with lower CAPEX costs, while the second enjoys
special electricity rates. Similarly, Cameroon FLNG, one of the few
projects approved in 2015, was a conversion of an existing LNG
vessel into a floating LNG (FLNG) unit, which reduced unit
liquefaction costs. Looking forward, companies will strive to keep
capital costs as low as possible, by putting forward brownfield
projects or low-cost FLNG. Any greenfield projects put forth will
need to have infrastructure characteristics that benefit CAPEX.
The presence of liquids could help project economics. This
uncertainty increases the need to keep project structures simple
and to sign long-term contracts with creditworthy offtaker(s) to
underpin future revenue stream. However, such offtakers tend to
become a rarity.
The end of the cosy club
Before 2000, the LNG industry used to be a restricted club with
a small number of players, strongly bound by a relationship
culture. It was dominated on the sellers side by multinational and
national oil companies, and on the importing side by state-owned
utilities, mostly from Asia. More recently, new players have
entered all parts of the LNG value chain, bringing with them new
business models and transformative ideas. FLNG, Cheniere and
Perenco are a few examples of the changes in the liquefaction
part. Well-established traders, such as Gunvor and Trafigura,
have been eager to enter the LNG market. The downstream
sector has probably seen the largest changes: in existing LNG
importing countries, new players are keen enter the LNG business,
sometimes benefiting from liberalisation processes.
New LNG importing countries are appearing that were either
not successful or sometimes not even considered before. Over the
past year, Jamaica started importing LNG, Gibraltar and Sharjah
(UAE) signed contracts to import LNG, and Ghana has a floating
storage and regasification unit (FSRU) on site. However, such
buyers are markedly different from the traditional creditworthy,
large buyers that sellers were used to dealing with. Given the
small initial size of their LNG markets, they contract limited
quantities (approximately 0.5 1 million tpy). This means sellers
need more buyers to support a normal train, multiplying the
number of negotiations processes. Some of the new countries and
companies also have a low credit rating, making new import
projects more challenging to finance than
previous ones.
Emergence of a buyers
market
Large quantities of LNG coming to the market
in parallel with weaker demand from key
Asian importing countries have created a glut
feeling. While some portfolio sellers are or
will be long in LNG supply, a few projects have
kept uncommitted LNG.
This situation allows buyers to be more
demanding about contractual conditions. They
are no longer willing to accept inflexible,
oil-indexed long-term contracts, although they
have not reached any consensus on what they
want instead. For those who see a long-term
role for gas and LNG in their markets, the
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 primary concern is to have competitive and flexible LNG
supplies. Despite the low pricing levels currently seen, LNG is
often not competitive against coal, notably in the absence of a
carbon price or tax. Additionally, natural gas is facing growing
competition from renewable energies, particularly as their
costs are coming down rapidly and they are promoted by
politicians, notably after COP21.
When it comes to decide how to price LNG, there is still
confusion between pricing indexation and price levels. Under
certain market conditions and contract formulas, oil indexation
can yield cheaper LNG than spot indexation. However, one
fundamental advantage of spot indexation is that it links the
price of LNG to the regional gas supply/demand balance and
gives investors appropriate market signals.
To date, a trading hub is largely absent in Asia, despite
attempts by Singapore, China (Shanghai) and Japan to create
their own. The road to create such a hub is likely to be long
and complicated. It could potentially be developed in less than
10 years should a discontinuity emerge between spot and
contract prices. Such a situation would prompt new entrants
and large end-users to use the spot market more extensively,
while resulting in losses for utilities locked into long-term
contracts.
Future pricing levels will be crucial for all of the new
developing markets that are assessing potential for entering
the gas market. Such buyers need affordable gas and fear a
market squeeze beyond 2020, if insufficient supply comes
online.
Pricing conditions are an important feature of long-term
contracts, but buyers are now also interested in making LNG
supplies more flexible and compatible with the creation of a
trading hub. The Japanese government has taken the lead on
such issues by publishing its LNG strategy in May 2016, which
promotes the removal of final destination clauses, viewing
them as an obstacle to the creation of a Japanese trading hub
it is keen to develop. Buyers are increasingly asking for more
flexibility to counterbalance the uncertainties of demand
evolution. At present, contractual renegotiations are more
unusual in Asia than in Europe, but if the Asian market
develops along the path that prevailed in Europe after the
economic crisis, it could also experience similar large scale
amendments of prices and take-or-pay conditions.
Figure 2. LNG export capacity, 2014 2o20 (source: KAPSARC).
56 March 2017
A rise in flexibility
Buyers from both established and new LNG markets are facing
tremendous uncertainty regarding their own future gas demand.
When it comes to LNG, this is exacerbated by different possible
outcomes concerning domestic production and pipeline imports.
Additionally, incoming liberalisation processes will increase the
pressure for some individual buyers. To alleviate such uncertainty,
buyers seek to have a mix of long-term, short-term and spot LNG
in their portfolio, allowing them to respond quickly to short and
medium-term changes, while also optimising opportunities that
arise from LNG market developments.
The shares of short-term and spot LNG in global LNG trade are
bound to increase, potentially up to 43% by 2020 (up from 28% in
2015), driven by increasing quantities of uncommitted LNG, portfolio
LNG, and flexible US LNG. Limited extensions of expiring contracts
will be another important element in this transformation. Many of
these contracts are held by Japanese and South Korean companies,
which are currently over-contracted and have little incentive to
agree to long-term extensions, preferring to turn them into
short-term contracts or take lower volumes.
These anticipated modifications in contractual practices could
yield tremendous changes. Final destination clauses may be the first
to go, pushed out by the pressure of buyers and possibly national
competition agencies. Once this is done, the question arises: how far
can buyers requests go? For example, there have been demands
from Petronet to lower the price of Gorgon LNG by 10%. Buyers
could also ask for more relaxed take-or-pay, putting even more spot
LNG on the market in case they use it.
Facing these rapid changes, sellers are concerned that contract
sanctity may be at risk. Completely changing the basis of long-term
contracts would have far-reaching implications across the entire
sector. In particular, banks would view the contracts and buyers in a
totally different way.
Conclusions
The boom-and-bust cycle currently seen the LNG market is familiar
to many industries that have survived it often more than once.
Doing so requires the ability to navigate difficult times by adapting
business models and, specifically for the LNG industry, to offer
a product that is affordable, available and reliable. Should the
LNG market fail to adapt and deliver, some of the new buyers
it is currently targeting may stay with cheaper coal or turn to
renewables. While the future of LNG is
intrinsically linked to the long-term role of
gas in the primary energy mix, it carries the
additional difficulty of being more expensive to
develop and bring to markets compared with
domestic production.
The developments discussed above will
have impacts on future LNG projects. The
inevitable rise in spot LNG trade is likely to
challenge the traditional model of long-term
contracts, at least for existing projects. Yet, there
is still a strong resistance, notably from the
financial point of view, for new projects to move
ahead without long-term contracts. To create an
environment in which projects can move ahead
with shorter, flexible, and spot-indexed
contracts, spot LNG needs to become the norm,
while reliable price benchmarks are developed,
costs are reduced and banks become
comfortable with this new model.

Paul Baker, Guild Associates
Inc., USA, presents the details of
a processing system designed to
remove impurities from
pipeline gas as a pretreatment
solution for small scale LNG
liquefaction plants.
ne of the biggest costs today for the utilisation of LNG
O is the transport of the fuel from the liquefaction facility
to the point of use. This limitation has hampered
the growth of LNG in the land and marine transportation
industries, as initially fuel would need to be sold at a loss or
near loss while the customer base grew. Since the natural gas
transportation pipeline system already exists, the solution
is to have an economical small scale liquefaction plant at
the point of use during the growth phase of the industry.
The Guild Associates Molecular Gate gas processing system
57
 can be an essential piece to this growth strategy, as it
can effectively remove impurities from pipeline gas as a
pretreatment solution for small scale LNG liquefaction
plants.
The Molecular Gate adsorption process uses pressure
swing adsorption (PSA) to remove carbon dioxide from
natural gas to 50 ppm or less and bulk removal of nitrogen
using specially developed adsorbents with high selectivity
between methane and these impurities. This technology has
been successfully implemented in two long running LNG
systems (one in the US and the other in the UK), both using
landfill gas as the source gas. Since the companys process
can remove water, carbon dioxide and heavy hydrocarbons in
a single step, the operational site can be simplified
compared to the conventional approach of using
combinations of amine systems, membrane systems, and
temperature swing adsorption (TSA) systems.
Because carbon dioxide freezes in a liquefier at levels
above 50 ppm, the pipeline gas fed to a liquefaction unit
requires pretreatment for the removal of the residual carbon
dioxide in the pipeline gas. Further, the pipeline gas is
typically dehydrated to levels of 7 lb/million ft3
(approximately 150 ppmv) and since water will also freeze in
a liquefier, the water level must be reduced to 1 ppm or less.
Excess heavy hydrocarbons can form solids in the liquefier
and their presence may need to be addressed in the design
of the liquefier. A Guild Associates Molecular Gate LNG
pretreatment system can remove all of these impurities in a
Figure 1. Typical Guild Associates Molecular Gate pressure
swing adsorption (PSA) system.
Figure 2. Pore size control results in high selectivity of CO2 and N2 over CH4.
58 March 2017
single-step process, or a simple two-stage process
depending on the feed gas specification.
Technology for carbon dioxide
removal
The companys technology for carbon dioxide removal uses
a custom-developed selective adsorbent with a high affinity
for carbon dioxide over methane in a PSA system. Feed gas
is introduced into the Molecular Gate unit at feed pressure,
which is typically 100 psig (6.9 barg), and the product
methane stream is delivered at near-feed pressure. Water
vapour and carbon dioxide are adsorbed in much the same
way as in a TSA dryer, resulting in a product gas containing
less than 1 ppm water vapour and under 50 ppm carbon
dioxide. The Molecular Gate system regenerates using
pressure reduction rather than thermal regeneration. A photo
of a typical Molecular Gate system is shown in Figure 1.
Because the Molecular Gate system operates with rapid
cycles, on the order of a few minutes, and the
feed/regeneration pressures can be changed rapidly, the
technology allows both bulk and trace removal of impurities.
The attributes of the PSA technology allows the amount of
carbon dioxide that can be removed in a single step to be
much higher than that achieved by a comparable TSA
system. The hours-long cycle times of thermally regenerated
TSA systems are more appropriate for the removal of trace
level of impurities.
Historically, conventional adsorbents in PSA service have
high methane adsorption capacities, which, upon
regeneration, result in high methane losses. The pore size
control of the Molecular Gate media allows for higher
selectivity of carbon dioxide over methane when compared
to other adsorbents. This size selective effect is shown
graphically in Figure 2. The very high selectivity between
methane and carbon dioxide of the Molecular Gate
adsorbent allows the delivery of a product that contains
ppm levels of carbon dioxide while also achieving high
methane recovery rates. In the Molecular Gate process,
nearly any level of carbon dioxide can be removed to
50 ppm or less in a single step. Guild Associates has
demonstrated performance of 50 ppm product gas from
digester gas feeds containing 40% carbon dioxide.
In a single-step Molecular Gate unit, the methane
recovery to the LNG facility is, in part, a function of the
amount of carbon dioxide in the feed stream. For example,
 pipeline gas feeds containing 1 2% carbon dioxide can
achieve methane recovery rates of 90%, while higher
levels of carbon dioxide, such as 5 10% would have
recovery rates in the 85% range. Thus, the Molecular Gate
design and hydrocarbon recovery is a site-specific
optimisation depending largely upon the uses of the
regeneration stream. A single-stage flow diagram is shown
in Figure 3.
Typical operating adsorption pressure of a
Molecular Gate unit is 100 psig (6.9 barg), though higher
pressure can also be accommodated. In general, higher
pressure operations would include a recycle compressor to
allow high methane recovery and minimise hydrocarbon
losses. An example of typical expected performance when
treating pipeline gas is shown in Table 1.
As with most separation processes, there are
considerable flexibilities in the design performance and
the use of a recycle stream or two-stage processing allows
the adjustment of the hydrocarbon recovery rates to be
higher or lower as needed to optimise the process for a
particular site.
In treating streams with high carbon dioxide or where
the highest methane recovery is desired, two-stage
processing can be considered. Such a process is shown in
Figure 4 where a first stage unit removes the bulk of the
carbon dioxide, while the second stage polishes the
carbon dioxide to ppm levels. The opportunity to recycle
the tail gas from the second stage allows for minimising
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the hydrocarbon losses. While a two-stage Molecular Gate
process is presented, the first stage can also be an amine or
membrane-based system. The use of two-stage processing
increases cost, and the overall cost must be balanced against
the value of the recovered hydrocarbons as LNG and the
site-specific use of the regeneration stream.
Heavy hydrocarbon removal
An advantage that the Molecular Gate technology
brings to LNG facilities is the ability to remove heavy
hydrocarbons along with the carbon dioxide and water
vapour. Though heavy hydrocarbons do not fit with the
pores of the adsorbent, they do adsorb on the surface of the
Molecular Gate adsorbent. The Molecular Gate technology
can target the relative removal quantity of these heavy
hydrocarbons, which can be adjusted to the specification for
the liquefier. In Guild Associates experience, requests for C6+
removal to levels as low as 10 ppm. have been seen
In removing heavy hydrocarbons, the system is flexible
and can be designed to target the removal of the C5 and
C6+ fractions, while leaving behind the bulk of the ethane,
propane and a portion of the butane in the product to the
liquefier. Since heavy hydrocarbons can form solids in the
LNG plant and since controlling the heating value of the
LNG product can be desirable, this flexibility can be an
attractive benefit.
The Molecular Gate system can also be designed to
remove mid-range hydrocarbons to match the desired
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 when carbon dioxide is removed
below 50 ppm, any hydrogen sulfide
in the feed is removed from the
methane product. To date, feed
streams with up to 6000 ppmv of
hydrogen sulfide have been treated.
Where the feed contains mercaptans,
they are also adsorbed and removed
from the product to the liquefier.

Nitrogen plus
carbon dioxide
rejection
Of the over 50 Molecular Gate
systems in operation or design,
Figure 3. Single-stage Molecular Gate flow diagram.
about a quarter have been designed
for the removal of high levels of
nitrogen (up to 40%) to typical
pipeline standards of 3 4%. For
all of the nitrogen rejection units,
the feed stream contains a level of
carbon dioxide ranging from a few
thousand ppm to lower single-digit
percentages. Because carbon dioxide
adsorbs more strongly than nitrogen
in the Molecular Gate process,
inherently a feed stock in this range
will result in a product with less
than 50 ppm carbon dioxide when
the nitrogen is removed to typical
pipeline specifications. Thus, the
Figure 4.Two-stage Molecular Gate flow diagram. Molecular Gate unit removes both
carbon dioxide and nitrogen in a
single step.
In Guild Associates experience, small scale
Table 1. Typical single-stage Molecular Gate PSA performance
specifications for a typical pipeline gas feed LNG plants target nitrogen levels in the
3 4% range and thus the typical product
Pipeline feed Product to liquefier Tail gas
nitrogen levels from Molecular Gate units
Flow (%) 100 87 13 match that required by LNG facilities. To date,
there are two operating Molecular Gate
Pressure, psig (barg) 100 (6.9) 90 (6.2) 3 (0.2)
nitrogen rejection units that feed small scale
Temperature, F (C) As available 140 (60) 180 (82) liquefiers with both of these with landfill gas
source feeds.

Composition, mole % Conclusion

Methane 94.00 96.77 74.75 Small scale LNG should be viewed as a
bridge technology to build the transportation
CO2 2.00 <50 PPM 15.90 industry LNG infrastructure while the
C2 3.00 2.75 4.77 customer base develops. The Molecular Gate
technology offers a convenient solution for
C3 0.70 0.40 2.78
conventional natural gas feed pretreating. The
C4+ 0.30 0.09 1.79 technology brings the advantage of removing
3
water vapour and any level of carbon dioxide
H2O 7 lb/million ft <1 ppm By difference
while offering a flexible design that can
HHV, Btu/ft 3
1031 1039 969 be targeted to remove a desired amount of
heavy hydrocarbons while also removing
product LNG heating value. Systems have been provided to other impurities. Where the feed gas contains nitrogen,
treat feeds with high levels of ethane and propane to Molecular Gate systems can remove nitrogen and deliver
remove a portion of these components (along with methane product to the LNG facility at a typical 3 4%
essentially all the C6+) to meet California Air Resources nitrogen concentration, while inherently removing carbon
Board (CARB) standards for CNG product quality. The dioxide in the feed to the ppm levels required for the
adsorbent also has a high affinity for hydrogen sulfide, thus liquefier.

60 March 2017
 John Y. Mak, Fluor Energy and Chemicals, USA,
analyses how, when used for power generation,
natural gas compositions must be within design
ranges determined by the Wobbe Index.

ecent LNG import growth is driven by the surging demand from

R emerging countries: the Asian markets, such as Thailand, Malaysia,

Singapore, Vietnam and Pakistan, and the South American markets,
such as Brazil, Argentina and Chile. LNG is primarily used as fuel to meet
the increasing demand of electricity in these countries. As an alternative
fuel, compressed natural gas (CNG) and LNG would reduce emissions. They
are also becoming a desirable fuel in vehicles.
When used for power generation, natural gas compositions must be
within the design ranges. Todays advanced low NOx gas turbines are highly
efficient and low in emissions, but are also sensitive to changes in the
properties of the fuel gas mixture. As a vehicle fuel, the methane number
must be acceptable, and a high hydrogen to carbon ratio fuel is required,
which would require removal of the high molecular weight hydrocarbons.

61
 When regasified LNG is used as pipeline gas, there are gas
interchangeability issues that must be addressed. If natural
gas were destined for domestic use, the gas properties must
be compatible with existing systems. UK gas specification is
set by Gas Safety Management Regulations, which use the
Wobbe Index (WI) as the main parameter of interchangeability.
The regulation set the limits of WI at between 1265 Btu/ft3
(49.8 MJ/m3) and 1380 Btu/ft3 (54.3 MJ/m3). This is a narrower
band of acceptable WI than many other countries, including
those in mainland Europe. For gas imports to the US, the
Federal Energy Regulatory Commission (FERC) recommends
the gas quality specifications be within 4% with respect to
the local gas quality, with a maximum WI of 1400 Btu/ft3
(55.1 MJ/m3). For gas import to California, Southern California
Air Quality Management District (SCAQMD) recommends a
maximum WI of 1360 Btu/ft3 (53.6 MJ/m3).
The WI or Wobbe number is an indicator of the
interchangeability of fuel gases and is defined in the
specifications of gas supply and transport utilities. WI
correlates the heat release from the combustion process to
the heating value and density of the gas, which serves to limit
the variations in the air-fuel ratio. WI is calculated by the ratio
of the higher heating value divided by the square root of the
gas density relative to air.
LNG sources
Natural gas can be derived from associated gas,
non-associated gas, coalbed methane (CBM) gas, shale gas or
other unconventional gas sources. Natural gas properties vary
with reservoir and formation characteristics. LNG is produced
by liquefying the natural gas after contaminants and acid
Figure 1. Higher heating value (HHV) and Wobbe Index (WI)
for various LNG sources.
Figure 2. N2 dilution to meet 1075 Btu/ft3 HHV specification.
62 March 2017
gas components have been removed. Heavy hydrocarbons
such as benzene must also be removed to avoid freezing
in the cryogenic equipment. The natural gas liquids (NGL)
components (ethane, propane and heavier hydrocarbons)
are liquefied together with methane as LNG. NGL recovery
is typically not installed in most liquefaction plants, as most
LNG sites are located in remote areas where there is no
immediate NGL market.
LNG WI and heating values vary depending on the regions
of formation. The heating value and WI for various LNG
sources are shown in Figure 1. Higher heating values can vary
from 1000 Btu/ft3 for the lean Alaska LNG to 1130 Btu/ft3 for
the rich Australian LNG, with respective WI of 1350 and
1430 Btu/ft3. If a WI of 1360 Btu/ft3 is required, only the
Alaska or the Trinidad gas can meet the specifications.
Nitrogen dilution
WI can be corrected by several means: blending with a leaner
LNG, dilution with nitrogen, and separation and removal of
the NGL components.
LNG blending requires importing a lean LNG and separate
storage tanks, which may not be viable. Nitrogen dilution is a
simpler solution, but would require the installation of an air
separation plant, and is applicable only for the marginal LNG.
Natural gas must meet the maximum inert levels in pipeline
gas, which is typically limited to 3 mole%.
For example, to meet a pipeline gas HHV specification of
1075 Btu/ft3, only LNG with 1100 Btu/ft3 is acceptable due to
the 3 mole% nitrogen limit. As shown in Figure 2, when LNG
with a higher heating value (HHV) of 1140 Btu/ft3 was
imported, the LNG must be diluted with 6 mole% nitrogen to
meet specification, which would not be acceptable. To handle
the richer LNG, the only viable option is removal of the NGL
components using Btu conditioning processes described in
the following.
Integration of Btu conditioning
unit
Figure 3 shows the integration of the Btu conditioning unit
to an LNG import terminal. LNG is unloaded from the LNG
carriers into the storage tanks from which the LNG is pumped
by the primary pumps to the boil-off gas (BOG) recondenser
and then by the secondary pumps to the vaporisers. When
the LNGs HHV or WI does not meet specifications, the NGL
components must be removed in the LNG Btu conditioning
unit. The function of the LNG Btu conditioning is to produce a
lean LNG for blending to meet specification. The blended LNG
can be pumped and sent to the existing vaporisers to feed the
sales gas pipeline. By-products from the Btu conditioning unit
are the NGL hydrocarbons, ethane and LPG, which are salable
products.
LNG Btu conditioning process
The Fluor CryoGasSM is designed to utilise the cold energy
from the import LNG for NGL separation. Typical gas plant
design requires a significant amount of refrigeration to
separate the NGL components from the feed gas and is
an energy intensive process. Using LNG as the coolant,
refrigeration consumption can be satisfied. The process
produces a lean LNG, and by-product consisting of ethane and
LPG. The following describes the Fluor CryoGas design for an
onshore and an offshore facility.
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 Onshore plant
The onshore Btu conditioning unit is shown in Figure 4. The
main equipment consists of the fractionation columns: the
demethaniser and deethaniser, which are closely coupled with
a specially design heat exchange system. The heat exchanger
cold box consisting of two heat exchanger passes. The first
pass is configured to cool and condense the lean gas from
the cold separator to form a lean LNG, and the second pass
condenses the demethaniser overhead to generate reflux
required for the demethaniser.
The demethaniser operates at low temperature and high
pressure, and is reboiled with low level heat, such as seawater
or ambient air. With the low operating
temperature and cold reflux, almost all the
ethane and propane and heavier
components can be removed as the
demethaniser bottoms, producing a
methane rich overhead vapour. The
deethaniser also uses the cold content
from the inlet LNG for reflux, producing a
high quality ethane and LPG bottom
product.

Case study
The case study involves four different
Figure 3. Integration of Btu conditioning unit. LNGs, with heating values varying from
1170 to 1117 Btu/ft3. The regasification
plant capacity is 2000 million ft3/d. The
objective is to produce a sales gas with
a heating value of 1075 Btu/ft3. Table 1
shows the different LNG compositions, the
amount of LNG that needs to be processed
and the corresponding ethane and LPG
production.
The amount of LNG required
conditioning increases from 68% for the
lean LNG D to 77% for the rich LNG A. For
the rich LNG A, LPG production is
106 000 bpd and ethane production is
71 600 bpd. For the lean LNG D, ethane
production is 155 400 bpd, and LPG
production is 7200 bpd. These additional
Figure 4. Onshore LNG Btu conditioning unit. products can potentially increase the
profitability of the LNG regasification
terminal.
Table 1. LNG Btu conditioning unit for four LNGs

LNG sources, mole% A B C D

Offshore/nearshore
plant
Nitrogen 0.17 0.13 1.00 0.03 Offshore or nearshore LNG regasification
Methane 85.98 89.30 88.00 86.79
terminals are starting to play a major
role in the global regasification markets.
Ethane 8.69 5.30 6.88 12.87 Floating LNG (FLNG) regasification
Propane 3.47 3.40 2.90 0.28 terminals have become a preferred LNG
import option, particularly for the Asian
i-Butane 0.85 0.75 0.45 0.01
and South American countries. The
n-Butane 0.79 1.10 0.70 0.01 state-owned companies in such regions
have taken proactive steps in establishing
Pentane plus 0.05 0.02 0.08 0.00
FLNG regasification terminals, which
allows quicker and more cost-efficient
LNG imports. FLNG terminals are low-cost,
Inlet gas HHV, Btu/ft3 1170 1148 1129 1117
quick to construct and offer greater
Final gas HHV, Btu/ft 3
1,075 1,075 1,075 1,075 mobility in comparison to onshore
LNG feed to Btu conditioning, % 77 74 63 68
land-based terminals.
Offshore LNG regasification terminals
NGL production can avoid the security, safety and
LPG, bpd 106 300 64 300 85 500 7200 environment concerns of onshore
terminals. Environmental permitting can
Ethane, bpd 71 600 73 300 56 800 155 400 be accelerated since they may be under a

64 March 2017
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different jurisdiction. Offshore terminals can be located on
a gravity-based structure (GBS), offshore platform or
regasification LNG carriers. The drawback of an offshore
terminal is the limited space, which means installing
processing equipment for NGL recovery can be cost
prohibitive. In addition, the NGL products must be stored,
handled and shipped, which would be safety concerns for
offshore operation.
The Fluor CryoGas process for the offshore plant
consists of an offshore portion and an onshore portion. The
offshore portion consists of equipment for LNG unloading,
storage, send-out and vaporisation system, while the
onshore portion consists of the NGL recovery process and
product storage. The process configuration is shown in
Figure 5. In the offshore portion, LNG is pumped from
storage tanks to approximately 125 barg, and is partially
heated to about 2C, a temperature above the freezing
temperature of water. The 125 barg and 2C supercritical
gas contains significant amount of the cold refrigeration
that is reserved for use in the onshore portion of the plant.
When the supercritical gas reaches onshore, the rich
gas is split into two portions. One portion bypasses the
NGL unit and the other portion is processed in the NGL
recovery unit to produce a lean gas for blending. The
Figure 5. Offshore LNG Btu conditioning unit.
natural gas feed is expanded in a high pressure
compander to approximately 60 barg, which cools the gas
to a low temperature. The cold gas can be used to satisfy
the cooling requirement in the reflux condenser in the
deethaniser. The shaft power from the expander is used to
compress the residue gas. The two-phase stream is then
separated in the cold separator. The liquid is fed to the
demethaniser while the vapour is split into two parts; one
part is fed to the cold box generating a cold reflux to the
demethaniser, and the remaining part is let down in
pressure in the low pressure compander, generating
refrigeration and power to operate the demethaniser. The
demethaniser operates at approximately 32 barg pressure,
producing an overhead residue gas and an ethane rich
bottom, which is further fractionated in the deethaniser
into the ethane product and the LPG product.
Conclusion
Gas compositions from newly discovered sources invariably
contain significant amounts of the NGL components, which
must be removed to meet the stringent WI specification
required for todays power generation equipment. The
use of nitrogen dilution to meet specification is limited
to the marginal gas, and is not applicable to todays rich
gas. Separation and removal of
the ethane and LPG components
can be achieved efficiently using
the advanced Fluor CryoGas Btu
conditioning process, with minimal
impacts to the existing facility.
The process can be configured to
produce a lean natural gas or LNG
that can be used for blending to
meet the WI specifications. The
process is applicable to onshore
and offshore regasification plants
utilising the LNG cold potential
in the production of ethane and
LPG, which can generate revenues
to justify the installation cost and
provide an economic incentive for
LNG import.
 Floating
liquefaction
nearshore
Adrian Finn,
Costain, UK, considers
the commercial proposition
of LNG production on floating
vessels.

NG production on floating vessels became a serious commercial proposition about a

L decade ago. Feasibility studies identified the expected capital costs of floating LNG
production1 and as the cost of onshore LNG plants escalated to over US$1000/t of
LNG, the economic case for floating LNG production became of real interest for the first
time.

Offshore LNG production

Floating LNG (FLNG) was seen as a solution to monetising gas from offshore gas fields
that were otherwise stranded, too far from land to consider a pipeline to shore. It was

Figure 2. The 1.2 million tpy PFLNG Satu

(courtesy of Petronas).

67
 envisaged that as technology improved and design experience
was gained then capital costs would reduce and there would
be clear commercial opportunities for LNG production many
miles from shore.
Offshore LNG technology development focused on fully
self-sufficient gas receiving, pretreatment, liquefaction and
storage facilities. Many important technical issues were
challenging. LNG storage systems would have to cater for
partially filled tanks being subject to vessel motions and the
associated sloshing effects. LNG transfer from the floating
liquefaction vessel to an adjacent carrier would have to
consider tandem LNG transfer, rather than side-by-side, again
due to vessel motions. Gas pretreatment and liquefaction
technology could be relatively conventional, but would have
to consider impairment of operational performance by vessel
motions and the safety concerns due to the restricted space
and weight on an offshore vessel. By 2008, these challenges
had been progressed sufficiently to launch the first topsides
front end engineering design (FEED), by Kanfa Aragon, Norway
and Costain, UK (Figure 1).
LNG investment decisions accelerated in 2011 and 2012,
notably on major coal seam methane (CSM) fed LNG plants in
Queensland, Australia and on the conversion of existing LNG
import terminals in Texas and Louisiana for gas liquefaction
for export. The first investment decisions were also made on
FLNG production vessels by Shell on the giant Prelude
vessel for North West Australia and by Petronas for two
smaller vessels, the first of which is shown in Figure 2.
The current worldwide LNG glut (and consequent low
prices), arising from the completion of 25 million tpy of
Australian capacity and from American plants coming
on-stream, means few greenfield LNG plants will now achieve
final investment decision (FID) before the 2020s. The BP
Tangguh plant extension is a recent exception, but benefits
from relatively low investment costs by having existing
infrastructure. The same applies to the US LNG production
plants that are being converted from LNG regasification
terminals and have low cost shale gas feedstock. Several
FLNG projects have been cancelled or postponed including
the 10 million tpy Lavaca Bay project in Texas and Shells
Browse project offshore North West Australia. Even the
commissioning of Petronass second vessel has been delayed.
So at a time of limited LNG plant FIDs, what is the future
of FLNG?
Though Enis Coral FLNG project, offshore Mozambique,
may be an exception, it is unlikely FLNG will be used
extensively to exploit stranded gas many miles from shore.
Figure 1. Flex LNG Producer, first floating LNG FEED.
68 March 2017
This requires a turret and a complete gas processing facility
atop an LNG storage vessel with all gas reception and
pretreatment as well as liquefaction, all plant utilities, LNG
storage, flare, accommodation, etc. An economic case for such
a major venture may require LNG production of several
million tpy. With project costs of up to several billion dollars
and low gas prices, the return on investment (ROI) will
normally be too low. Projects are also too technically complex
for most.
However, could FLNG production nearshore, rather than
many miles out to sea, compete with onshore LNG
production?
Future LNG demand
In the mid to longer term, energy supply diversification,
the need for greener energy and delays in committing to
new nuclear power plants all support increased natural gas
use for power generation, especially in place of coal, and
thus investment in LNG production.2 & 3 LNG imports are
anticipated to grow in Europe, Asia and South America and
surplus gas in the US and the Pacific will drive LNG supply
opportunities,4 as shown in Figure 3.
An economic alternative is needed to onshore liquefaction
as this can require huge infrastructure costs for the feed gas
pipeline, jetty and other marine costs, access roads and other
infrastructure, construction personnel accommodation, etc.
Construction costs can be excessive due to difficult terrain
and/or shortages of local labour (which leads to high costs to
bring in qualified resource). This has been ameliorated on
recent LNG projects by pre-assembly of plant units off-site (in
qualified fabrication yards) and delivery of the plant as
modules. This modular approach, established in smaller scale
natural gas processing and liquids extraction, can reduce
construction costs and safety risks, but is not feasible for all
locations.
Onshore plants increasingly face opposition on
environmental grounds. Many environmental factors need
evaluating in detail for planning consent. Obtaining planning
permission can take years, especially if the proposed plant is
located close to human habitation and/or areas of
environmental sensitivity.
Nearshore LNG production
LNG plant costs and time to start-up can be less than for a
conventional onshore plant by using a floating nearshore
moored barge, especially where the water depth is sufficient
to avoid regular dredging and other location factors are
favourable. This avoids the difficulties of extensive onshore
construction by using a vessel and shop-fabricated topsides to
totally avoid most site construction costs.
The economics of FLNG production are very much
influenced by hull costs. With a dearth in recent orders for
new LNG carriers, new build hulls are available at competitive
costs from established shipyards.
Benefits of pipeline gas
Nearshore LNG enables the use of transportation pipeline
gas that has already been processed to meet water and
hydrocarbon dew point specifications, maximum inerts
(carbon dioxide and nitrogen) level and sulfur specifications,
so the pretreatment for gas liquefaction is much less than
normally required for an offshore location. This reduces the
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 number of plant items, modules, plant space requirements,
weight and cost.
The pipeline gas may have been processed to extract
natural gas liquids (NGL) and be lean in hydrocarbons heavier
than ethane. If the gas contains much over 1 mol.% of
nitrogen, this will require removal from LNG flash gas but
cryogenic fractionation technology is well-proven for this.5
The carbon dioxide content of the gas needs reducing to
50 ppmv to avoid freeze-up during liquefaction. This is
conventionally achieved in the acid gas removal unit (AGRU)
by MDEA solution with an added reaction enhancer/activator.
Physical solvent can be appropriate, especially on smaller
facilities. Physical solvent may struggle to achieve 50 ppmv
carbon dioxide in the treated gas, but the downstream
molecular sieve dehydration system can be designed to
remove any remaining carbon dioxide to meet the required
50 ppmv specification. As pipeline gas already meets
hydrogen sulfide and total sulfur specifications, there should
be no need to remove any (though vented carbon dioxide
from the AGRU may need to be thermally incinerated as it will
contain absorbed sulfur compounds).
Water removal via molecular sieve is always needed for
liquefaction. An upstream TEG unit may be justified to remove
the bulk water from the treated gas from the AGRU, especially
in warmer climates. The TEG unit could remove some heavier
hydrocarbons from the gas, though there will still be a need
to remove any heavier hydrocarbons that could freeze in the
liquefaction section. This process duty is normally integrated
with the liquefaction system and uses feed gas chilling. For
very lean gas, an adsorbent system will likely be optimal, with
removed heavier hydrocarbons used as fuel. Mercury removal
will also be required.
A standardised liquefaction plant design can be used for
nearshore liquefaction as the feed gas is lean in heavier
hydrocarbons and of a relatively constant (high methane)
composition. This cost reduction approach is already gaining
acceptance for smaller skid-mounted onshore LNG plants. The
Figure 3. Global LNG Supply (source: BP Energy Outlook to
2035).
70 March 2017
LNG production capacity would be determined for each
project by process simulation based on the specific feed gas
pressure and composition. The plant and refrigeration system
design would essentially be standardised, thus considerably
reducing engineering labour, time and capital cost. The plant
layout, footprints and weights would be known early in the
detailed design schedule. Plant items would be provided as
modules for installation on the barge. Limited engineering,
the use of proven standardised equipment and an established
procurement chain would mean plants being operational
much quicker than a conventional onshore LNG plant.
Onshore plants can use the same approach to modular plant
design, but cannot reduce plant start-up time due to the time
required for construction.
As gas pretreatment is relatively modest, there is
justification to locate the gas pretreatment equipment on the
moored barge, as well as the liquefaction plant so as to
further minimise onshore construction. The pretreatment
plant can be standardised to a great extent as most pipeline
gas contains not more than about 3 mol.% of carbon dioxide,
so this value could be used for AGRU design. For offshore
FLNG plants, there has always been concern over the
performance of the amine system regeneration column under
vessel motions and, to a lesser extent, the amine system
contactor. These concerns do not apply to a moored barge
operating in calm seas nearshore.
Liquefaction
Onshore liquefaction usually relies on the principle of
evaporating liquid to provide refrigeration and the necessary
refrigerant components ethylene and/or ethane, propane
and butane (as a minimum) being readily available. Use
offshore of such liquid hydrocarbon refrigerant (either in
separate refrigeration cycles or in a multicomponent mixture)
has always been a concern, for two key reasons:
z The effect of vessel motions on the distribution and
effectiveness of the evaporating refrigerant can disrupt
heat exchanger performance and therefore liquefaction
plant performance and LNG production.
z The need for storage of hazardous flammable refrigerant
on an integrated and confined topsides has either
influenced the decision to use safer inert nitrogen
refrigerant for liquefaction or has meant increased
spacing distances and fire barriers so limiting overall
plant size and LNG production.
These have led offshore liquefaction projects to propose
and use nitrogen expansion technology as nitrogen is
inherently safe. Nearshore LNG production on a barge located
in calm waters does not incur severe vessel motions and if the
hydrocarbon refrigerant can be stored onshore then LNG
production is not limited as much by topsides space
restrictions.
Refrigeration compressor drives
A 1.0 million tpy LNG plant requires approximately 40 MW
of power to drive the refrigeration compressor(s) so an
offshore plant either requires a significant electrical power
generation system or the use of aeroderivative gas turbines
as compressor drives (with a smaller power generation system
for other electricity users). Aeroderivatives are proposed
rather than the industrial gas turbines used on virtually
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all major onshore liquefaction plants due to their higher
thermal efficiency and lower weight. Electricity generation
incurs weight and significant space, but electric motor
drives are much better established than aeroderivative gas
turbines as direct compressor drives on process plant and/or
refrigeration service. Direct drive compressors also need to
be located away from the gas pretreatment and liquefaction
plant so increasing piping runs and causing other engineering
challenges.
Different LNG technology licensors, plant designers and
operators have advised one driver option or the other on cost
and performance grounds.6 If nearshore LNG could use
imported electrical power, with no electrical infrastructure
being needed on the barge itself, this would be the most
energy efficient and environmentally favourable approach.
Clearly, this is location dependant and in some locations the
use of gas turbine drivers will be favoured based on overall
cost and environmental effects.
Of course, nearshore LNG does not require any
accommodation on the LNG production barge, which contains
only gas pretreatment and liquefaction, so providing a
significant saving in topsides weight and support steel.
Plant size
Nearshore liquefaction would be suitable for LNG production
of up to 2.0 2.5 million tpy (and gas reserves of the order
of 1 trillion ft3. The LNG industry has usually considered such
plant capacities as small and uneconomic for traditional
long-term (typically 20 year) take or pay type contracts.
However, conventional LNG business models are changing and
LNG buyers are looking to renegotiate long-term contracts.
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The use of a liquid spot market for LNG, as with crude oil, is
becoming more widespread. These developments could justify
more flexible commercial arrangements and smaller capacity,
simpler LNG production projects which can be developed,
taken to FID and executed more quickly than typical large
LNG projects.
LNG plant prospects in Canada, West and East Africa and
Papua New Guinea have all considered nearshore liquefaction
to be relatively attractive.7
Conclusion
Nearshore liquefaction can lead to reduced costs and shorter
time to LNG production than onshore liquefaction. It avoids
construction works, a jetty, long gas pipelines and other major
infrastructure, thus making it attractive for new liquefaction
projects in locations where construction is especially difficult
and/or costly.
References
1. FINN, A. J., New FPSO design produces LNG from offshore
sources, Oil & Gas Journal, (26 August 2002), p .56.
2. World LNG Market Forecast 2017 2021, Douglas Westwood.
3. BLUME, A., Editorial Comment, Gas Processing,
(September/October 2016), p .3.
4. GUTTULSRD, T-I, FLNG: a concept comes of age,
LNG Industry, (August 2016), p. 30.
5. FINN, A. J., Nitrogen removal, LNG Industry,
(January/February 2013), p. 27.
6. CHRETIEN, D., Totals Approach to Selecting the Driving
Mode for F-LNG, GPA E conference, Paris, (13 15 March 2013).
7. Special report: Global LNG overview, Hydrocarbon
Processing, (January 2016), p. 9.
CRYOGENIC
insulation
a vital component

he main drivers for the adoption of LNG

T as marine fuel have long been considered

to be economic feasibility, environmental
stewardship and regulatory compliance. While
lower oil prices of the last few years have reduced
Anatoli Kogan, the economic attractiveness of LNG for several
applications and created uncertainty with some
Lydall Performance LNG projects, the environmental drivers have
become a major push for LNG-fuelled marine
Materials, USA, vessels. The emission control areas (ECAs)
established under MARPOL Annex VI, as well as
discusses the tightening requirements for sulfur content outside
optimisation of of the ECAs and regulations for inland waterways,
are paving the way for wider use of LNG as marine
insulation for LNG fuel.
It is widely accepted that when it comes to
marine fuel tanks. marine LNG fuel tanks, there are three types: Type
A and membrane tank; Type B; and Type C. Each
design type has its own advantages, with multiple
factors, such as size and type of the ship, route
range, capacity, etc. that help to determine which
fuel tank type is preferred. For storage volumes of

73
 1000 m or less, Type C cylindrical tanks are preferred. They
are robust pressure vessels that are more efficient as they
allow a long retention of fuel and require minimum
maintenance. They are also typically considered to be
leak-free tanks (could leak only through valves), while the
other types may have leaks, which need to be planned for
during design and construction.
This article will address some of the main insulation
aspects of Type C cryogenic tanks for LNG and other liquefied
Figure 1. Insulation thickness comparison.
Figure 2. Thermal short issues with multi-paired overlap.
74 March 2017
gases. Cryogenic tank hold times are directly affected by the
heat transfer to the cryogen.
As Lydall discussed in previous articles for LNG Industry in
2010, 2012 and 2015, there are several main modes of heat
transfer, as well as methods of reducing their impact on
cryogenic systems.1, 2, 3 These modes are: solid conduction;
convection; and radiation.
Solid conduction occurs when heat is transferred within
an object or between solid contact points. This is addressed
by proper design of tank supports and piping.
Gas convection occurs when heat is transferred by the
flow of gas molecules. Gas convection and gas conduction are
minimised by creating a strong vacuum environment in the
annular (insulation) space.
Radiation is the heat transfer by electromagnetic waves.
This is addressed by using a multilayer insulation (MLI) where
multiple reflective layers are separated by low thermal
conductivity spacer material. Lydalls CRS Wrap is a common
type of standard MLI system, and has been successfully used
in various types and sizes of cryogenic vessels (from small
oxygen therapy units to road trailers, ISO tanks and large
storage tanks for LNG and liquefied industrial gases). The
system consists of multiple layers of highly reflective
aluminium foil separated by Lydalls CryoTherm, a low
thermal conductivity microfibre glass spacer material.
Insulation for Type C cryogenic
tanks
To compare efficiencies of various types of insulation, thermal
conductivities are usually compared. Insulation that has the
lowest thermal conductivity will result in longer payload
retention than insulation with the same thickness and higher
thermal conductivity. It will also offer an opportunity to
reduce insulation thickness, which could result in significant
space savings.
Typically when it comes to insulating a Type C LNG fuel
type tank, there are three main insulation options: foam (such
as polyurethane); bulk filled insulation (such as perlite); and
super insulation (MLI and cryogenic fibreglass blankets).
Polyurethane (PU) foams have the highest thermal
conductivity among these types. Therefore, to give the
required hold time, they will require larger thickness of
insulation.
One of the original types of cryogenic insulation has been
bulked filled powder, such as perlite. In most cases, this type
of insulation is inexpensive and filling up the annular
(insulation) space does not include an elaborate process, such
as that needed for wrapping the insulation and then nesting
the inner tank within the outer. However, it is heavy (density
range of 50 130 kg/m3) and settles from vibration and
thermal cycling, so there is a need for an elaborate filling
process to ensure that all of the voids are filled up. Even with
these efforts during filling, perlite will still settle and will
need refilling, increasing the weight. Also, earlier in this
article when discussing heat transfer mechanisms, gas
conduction and convection were mentioned. Since pulling
vacuum helps to reduce those heat transfer types, a vacuum is
typically used on perlite-insulated cryogenic vessels. However,
since perlite readily absorbs moisture, it usually takes a long
time to pump the annular space. This extra pumping time
adds to total production time and lead time.
 Heavy weight, settling and
long vacuum pumpdown times
are the major reasons that
perlite has practically stopped
being used as insulation for
mobile cryogenic equipment,
such as trailers, ISO containers,
etc. For those types of vessels,
MLI has become the insulation
of choice.
For large bulk static
cryogenic storage tanks, the
adoption of MLI or fibreglass
cryogenic blankets has been
somewhat slow since those
types of tanks are not exposed
to substantial vibration resulting
in perlite settling. However,
other deficiencies of bulk filled
insulation stated earlier in this Figure 3. Increase of thermal conductivity due to multi-pair overlap.
article are still present and
affect the overall tank cost,
which has to be considered. The
overall size of the cryogenic tank is often used as a guide to insulation for those and larger tank sizes with record size
what type of insulation should be used. While in the past, only of 1 million litre MLI tanks built by Taylor-Wharton.
perlite was considered for static storage tanks with sizes of Similar considerations are applicable for the LNG
above 100 000 litres, in the last several years, many original marine fuel tanks. When compared to standard bulk
equipment manufacturers (OEMs) have started to adopt super storage tanks, marine fuel tanks are exposed to movement
 and vibration. Also, weight and space become important
factors.
PU foam insulated tanks will require the most space due
to foams thermal conductivity being the highest when
compared to perlite and MLI.
A 500 m3 LNG fuel tank could require as much as 800 mm
thickness of foam insulation.
The use of perlite for same size tank and same
boil-off gas (BOG) will allow to drop insulation thickness
down to 250 mm. However, even at that thickness, it will
require a significant amount of perlite. Depending on the
packing density, this could result in as much as 20 t of perlite.
Multiple fuel tanks could result in significant weight
consideration for a single ship.
By comparison, as shown in Figure 1, the same 500 m3
tank insulated with MLI could result in less than 500 kg of
insulation, which will only take up approximately 10 15 mm
of space. This significant annular space reduction can allow a
smaller diameter outer vessel, resulting in the potential to
save as much as 10% on outer vessel steel body weight. On a
70 t outer vessel, this could result in 7 t savings. Combined
with insulation weight savings, it could potentially exceed
25 t per fuel tank.
In addition to weight savings, there is a possibility of
footprint reduction. Going from PU foam insulation to perlite
could result in as much as a 15% reduction of tank footprint
with an additional 10% reduction by adopting super
insulation. Since space is at a premium on marine vessels, this
is also an important factor to consider.
Its important to note that those numbers are estimates,
and that differences in tank design could have an influence on
the numbers. Also, in some cases, it is argued that it is not
possible to reduce the annular space due to internal piping.
However, due to advances in cryogenic tank designs, reduction
of annular space is becoming a more realistic opportunity.
Proponents of bulk filled insulation also claim that, in the
case of vacuum loss, super insulation loses most of its
insulating properties. It is true that super insulation is sensitive
to vacuum level, since, if vacuum is lost, gas convection and
gas conduction become more predominant. However, vacuum
losses are extremely rare. The possibilities of accidents that
could lead to vacuum loss in static storage tanks and LNG fuel
tanks are much lower than that of the mobile vessels, such as
road tankers, etc. While LNG marine fuel tanks have additional
application related aspects (versus static storage tanks) that
dictate special design, marine classification societies have
strict specification requirements that tank manufacturers have
to adhere to. The high engineering capabilities of major
cryogenic tank manufacturers result in high quality cryogenic
vessels, where the possibility of vacuum loss is so small that it
is less of a concern.
MLI application
Earlier, this article discussed the importance of vacuum for
MLI to perform at its full potential. In addition to vacuum,
the methods used for MLI application and positioning on
the inner vessels are also extremely important. Improper
installation, disregard to thermal shorts at the MLI overlaps,
mishandling of the insulation, etc., could all lead to reduction
of thermal performance. Mistakes in those processes are
costly as they will lead to product losses, safety issues, quality
complaints, tarnished reputations, etc.
76 March 2017
Application of MLI is a tedious process. The most
common method involves rotation of the inner vessel along
its horizontal axis while insulation is wound up from the
rolls that are positioned parallel to the vessel. To ensure
that no areas of the vessel are exposed to radiation heat
transfer, a small overlap is required. Since typical MLI comes
as a continuous single layer wrapped on the roll, the total
number of layers that are required for a particular vessel
and application will equal the number of vessel rotations.
It may appear tempting to try to reduce the wrapping
time by preparing rolls with multiple pairs of foil and
spacer wound on them. This way, the total number of vessel
rotations could be reduced by the number of pairs on the
roll. Using the example discussed earlier, with 30 MLI
layers, it will require 30 vessel rotations by using a
continuous single pair (single combination of foil and
spacer as in CRS Wrap), or six rotations if insulation rolls
were made with five pairs (five combinations). While it may
appear that the wrapping time could be reduced, there are
several issues with this approach:
z One of the most important issues is the thermal short
issue. Figure 2 shows that when the multi-paired
approach is used, there is a direct thermal contact in
the overlap area between the outer pair layer to the
most inner pair layer. This thermal pass at the overlap
area allows the heat from a warmer outer layer to travel
directly to the colder inner layer, basically bypassing
the multi-layers of the insulation. While in some areas
of the vessels it is almost impossible to avoid similar
contacts in some of the areas, such as heads, supports,
etc., the tank designers try to minimise such instances.
Deliberately choosing to use the multi-paired overlap
approach is counterproductive as it creates many more
areas of contact that negatively affect the thermal
performance. As shown in Figure 3, such an approach
resulted in as much as a 40% drop in performance
during the testing (thermal conductivity of the five-pair
overlap increases by as much as 40% over the system
with a single pair overlap).
z Using insulation rolls with multiple pairs of the
reflective material and spacer will lead to a faster
consumption of the rolls and necessity to replace
the rolls, which, in turn, will slow down the process.
Therefore, even the overall decrease in wrapping time
claim does turn out to be quite questionable.
Conclusion
A wide variety of typical applications for liquefied industrial
gases and LNG, as well as growth in the LNG marine fuel
sector, have brought additional attention to cryogenic
insulation efficiency and highlighted its role in the overall
design of the final system, including LNG-powered marine
vessels.
References
1. KOGAN, A., Colder Longer With Safer Insulation,
LNG Industry, (January 2015), pp. 47 50.
2. KOGAN, A., MINNICK, J. E., FESMIRE, J. E., and
JOHNSON, W. L., Colder Longer, Optimising Insulation
Performance, LNG Industry, (Winter 2012), pp. 21 23.
3. KOGAN, A., MINNICK, J. E., FESMIRE, J. E., and
JOHNSON, W. L., Keeping Payloads Colder... Longer
LNG Industry, (Winter 2010), pp. 50 56.
 VIP, the new standard for
LNG transfer?

Erik
Admiraal,
Demaco, The
Netherlands,
presents the
advantages of
using a Vacuum
Insulated Pipeline
(VIP) for LNG
transfer.

NG is a beautiful way of transporting large

L quantities of gas around the world. It enables

the use of gas from geographically remote gas
fields to energy consumer hotspots.
The downside of gas is that it requires a lot of
energy to convert it into its transportable, high density
liquid form, LNG. At approximately -160C at atmospheric
pressure, it is not an easy liquid to transport. In fact, it is
very easy to lose the LNG into boil-off gas (BOG) due to
heat in-leak at every step of its logistic journey around the
globe. In large cryogenic tanks, the BOG can be limited by
the use of a proper insulation (e.g. membrane or vacuum).
When looking at a cryogenic tank, it has a relatively large
volume with a relatively small outer layer surface (that has Figure 10.
Installing the
the heat in-leak from the hot outside world), limiting the VIP at the
losses. Things turn differently when the LNG has to be Risivika Skangas
transferred from one means of storage to the other. The LNG bunkering
transfer through a relatively small pipeline with a large hot station.
surface puts things into a totally different perspective. On top of
this, the LNG is transported in even smaller break-bulk packages

77
 from LNG shipping to trucking and also off-grid household
communities.
LNG, the changing game
This break-bulk for users other than the traditional
grid-gas-pipeline network is changing the game. All BOG
is now considered to be a loss. If vented, it is a direct loss.
Since natural gas is contributing to the acceleration of the
greenhouse effect, venting nowadays is prohibited in many
countries. Therefore, the BOG has to be dealt with in a
proper manner. One way is to convert it into electricity via a
generator, but if there is no user for this electricity, then this
is pointless. Another option is to reliquefy the BOG into LNG.
The technology is available, even on a small scale, but it is a
costly affair.
Figure 1. Conduction.
Figure 2. Conduction.
Figure 3. Convection.
78 March 2017
Rise in LNG usage
The crisis in the oil and gas industry in recent years did
not really help to increase the use of LNG as a greener
alternative. The expensive equipment to be used did not add
up to the gas price in combination with the low oil price.
In fact, it is environmental politics which is now
accelerating the use and therewith also the availability of
LNG. Large energy consumers, such as the petrochemical and
steel industries, are being pushed to use cleaner fuels by
means of sanctions and, more positively, public funding. The
maritime market is changing due to the Emission Control
Area (ECA) requirements becoming increasingly stringent.
These political environmental decisions are causing an
accelerated change to convert to cleaner fuels, such as LNG.
Insulation
Back to the basics. BOG should be minimised at every step
in the supply chain; specifically, during the transfer from one
LNG storage to the other. The traditionally used pipelines for
large scale LNG are conventionally insulated by insulation
materials such as glass-foam or polyisocyanurate (PIR). This
used to make sense for receiving terminals since the gas
was regasified anyway and transferred into the grid. With the
break-bulk of LNG, however, the story changes as mentioned
above. The transfer for bunkering ships or for further local
transport should be with as little possible losses, hence BOG,
as technically possible. The answer is insulation. Todays best
insulated pipeline is a Vacuum Insulated Pipeline (VIP). With
a 10 15 times lower heat in-leak than any other type of
insulation, VIPs are an efficient solution for the transfer of
LNG.
Why does a VIP insulate so well?
To have the maximum insulation, there are three methods of
heat transfer that need to be blocked. These are:
z Conduction.
z Convection.
z Radiation.
Comparison between PIR and VIP insulation:
z PIR still has a heat load conducting through the PIR foam
to the process line (Figure 1).
z VIP only has a few percent of this heat load through the
spacers and heat bridges (Figure 2).
Figure 4. Radiation.
z PIR has little heat load through the PIR insulation. refinery in Lysekil (100 km north of Gothenburg) on the
VIP has even less heat load due to the vacuum space west coast of Sweden. Demaco has engineered, produced
(Figure 3). and delivered approximately 1.7 km of VIP for LNG with a
process diameter of 12 in. Line lengths per vacuum
z Radiation heat load hits the three radiation shields
insulated spool were up to 24 m.
formed by the aluminium vapour barriers (Figure 4).
The terminal will become an important hub for
z The aluminium vapour barriers reflect a part of the distribution of LNG as fuel for ships. A shift to LNG as fuel
radiation heat load (Figure 5). is one of the most effective ways to reduce CO2 emissions
z The radiation heat load hits the multi-layer insulation and meet stricter environmental requirements. The gas will
(MLI) (Figure 6). come from the LNG plant at Risavika (another LNG project
Demaco has been involved for the engineering, production
z The MLI reflects 95% of the radiation heat load
and installation of the VIP system) near Stavanger. LNG will
(Figure 7).
be delivered to Lysekil using the Skangas LNG carrier
A VIP blocks all heat transfer Coral Energy.
roads as follows:
z Road block against conduction:
Pipe-in-pipe system with a
minimum of contact points.
Where contacts are necessary,
they are either lengthened with

Are you gambling

heat bridges, or materials with
the lowest thermo-conductive

on your cryogenic insulation media?

properties are used.
z Road block against convection:
The space in between both
pipelines is being vacuumed There are plenty of imitators out there. And working with one could be hazardous
to a static vacuum lower than and put your company and its reputation at risk. Protect your reputation and
1 x 10.5 mbar. There are hardly prioritize safety by choosing a partner you can trust.
any particles left to transport the
heat loads. A long lasting high 4GEQIPK\GFD[NGCFKPI1'/UCPFURGEKGFKPPWOGTQWUOCLQTKPFWUVTKCNCPFUEKGPVKE
insulation vacuum level is kept RTQLGEVU.[FCNN2GTHQTOCPEG/CVGTKCNUUVCPFUQWVYKVJ [GCTUQHET[QIGPKEGPIKPGGTKPI
by means of getter materials. CPFCRRNKECVKQPGZRGTVKUG9KVJVJGJKIJSWCNKV[CPFNGCFKPIRGTHQTOCPEGQH.[FCNNU
ET[QIGPKEKPUWNCVKQPOGFKC[QWYKNNUCHGN[MGGR[QWTRC[NQCFEQNFGTNQPIGT
z Road block against radiation:
Around the process line, a 9QTNFYKFGSWCNKV[CPFUCHGV[UVCPFCTF 1WVUVCPFKPIXCEWWOKPVGITKV[
highly reflective foil is wound
/CFGKPVJG75# %GTVKGFHQTQZ[IGPEQORCVKDKNKV[
with multiple layers (MLI).
This creates a radiation shield 'ZEGGFKPIN[GHEKGPVRGTHQTOCPEG 0QPHNCOOCDNG
reflecting the infrared radiation. *KIJURGGFXCEWWORWORFQYP 0QPDKQRGTUKUVGPVQRVKQPCXCKNCDNG

This results in an optimal

insulation that beats all other
conventional insulation methods by
approximately 10 15 times.
Subsequently, BOG will also be
10 15 times less.
Dont gamble on your reputation or your payload
with an imitator. Choose Lydall, a cryogenic partner
you can trust.

Lysekil LNG
terminal, Sweden
z 12 in. Vacuum insulated line,
1680 m in length.
z 2 in. Vacuum insulated line,
900 m in length.
In early 2013, Demaco acquired
www.lydallpm.com
an order to build the vacuum
insulated transfer lines for the For more information, contact Anatoli Kogan, Lydall Performance
f Materials Cryogenic Market
k
Manager, at +1.518.880.1959 or akogan@lydall.com.
largest LNG receiving terminal in
Scandinavia, to be built by Cryo AB
for Skangas. The receiving terminal
was constructed next to Preems
 In total, 11 special truckloads were required to transport
all of the sections to Lysekil. At the end of 2013, the last
truckload of sections left the Demaco premises and arrived
at the terminal. The installation on site has been completed
and, on 20 October 2014, the LNG terminal was officially
opened.
Risavika LNG bunker terminal,
Norway
z 6 8 in. vacuum insulated line, 700 m in length.
Demaco has engineered, produced and installed the
vacuum insulated LNG transfer lines for a ferry bunker
terminal operated by Skangas. The system has been realised
in the Norwegian port of Risavika, near Stavanger. Demacos
client was Cryonorm Systems from Alphen aan den Rijn.
Figure 5. Radiation.
Figure 6. Radiation.
Figure 7. Radiation.
80 March 2017
Cryonorm Systems was the engineering, procurement and
construction (EPC) contractor for this comprehensive LNG
bunkering system.
Demaco has been responsible for the design and
erection of the vacuum insulated transfer lines within the
LNG bunker terminal. Demaco and Cryonorm Systems were
responsible for the erection of the system for Skangas to
facilitate the loading of the Fjordline ferries that sail
between Norway and Denmark. These ferries use LNG as
fuel for their propulsion systems.
Demaco has been responsible for three quarters of a
kilometre of transfer lines with process diameters ranging
from 6 in. to 8 in. When it comes to low BOG generation, the
system is performing above Skangas expectations.
Next to the lowest BOG achievable, the VIP will provide:
z Long-term durability due to its all stainless steel
construction.
z Long-term steady insulation value since it is not
deteriorating due to environmental influences.
z Small footprint, especially interesting for brownfield
installations.
Conclusion
VIP is the new standard for LNG transfer. Due to its low
OPEX during the lifetime of an LNG production plant, a
receiving terminal or small or mid scale bunkering stations,
the use of VIP realises the lowest total cost.
Figure 8. One of the 12 VIP Lysekil LNG transports.
Figure 9. Unloading the VIP at the Skangas Lysekil LNG
terminal.
Ted Berglund and Joe Hughes, Dyplast Products, USA,
explain the importance of correct insulation installation
at LNG facilities.

Insulation
INSTALLATION
ailures at a new LNG facility during the first few months

F of initial operations can be expensive and cause damage

to a companys image. Therefore, most companies do
everything possible to ensure a perfect start-up, but this is
easier said than done. Identifying what may ultimately cause
problems is a first step to controlling and eliminating those
problems. Although it may be challenging to anticipate the
main reasons for forced shutdowns or curtailments during the
first months of operation, poor design and installation of the
insulation system are clearly on the list.
A properly designed and installed insulation system on an
LNG pipe or fitting is quite a marvel, since across only a few

81
 inches the temperature can be -165C at the pipe and 37C at
the jacket or a delta of approximately 200C. If a thermal
short develops in the insulation system (for instance, in a
poorly installed expansion joint), the temperature at the
surface of the metal jacket can drop dozens of degrees below
freezing, and ice can quickly form around the pipe and
equipment, making it inoperable and/or posing hazards to
personnel. The energy loss can also be significant and, in the
worst cases, the natural gas liquid (NGL) in the pipes can
begin to boil-off, causing severe problems in pumps and other
equipment.
While many of the principles that will be discussed herein
are applicable to any insulant, this article focuses on
polyisocyanurate (polyiso) and cellular glass (cell glass), since
there is more long-term experience with those insulants, with
Figure 1. LNG insulation vapour stop.
Figure 2. Double layered insulation system.
Figure 3. Double layer insulation system example.
82 March 2017
successful service with no failures over periods of 20 years
and more.
Fortunately, poor design of insulation systems is becoming
increasingly rare since there are numerous engineering,
procurement and construction (EPC) contractors and specifiers
who have extensive experience in LNG insulation systems.
However, there are still a few engineer/specifiers who depend
on the old binder on the shelf to help them select insulants
and design the system of sealants, mastic, vapour barriers,
jackets, pipe coatings, expansion joints, vapour stops, etc.
Unfortunately, many older insulation specifications have not
incorporated more recent lessons learned, codes/regulations,
and advances in technologies/products. For instance, modern
vapour barriers are much better than old vapour retarders at
very low temperatures; and modern computer-aided fabrication
equipment can cut insulation to exotic shapes with close
tolerances to fit, for instance, fittings and valves. Also, CINI 2016
has evolved into a comprehensive standard specifically for LNG
facilities, and now requires the measurement of many physical
properties at LNG temperatures (-165C), allowing smarter
selection of materials and thickness calculations. Similarly,
ASTM C591-16 for polyiso and ASTM 552-16 for cell glass
require calculation of thermal conductivity across a range of low
temperatures, down to cryogenic; and recent lessons learned
have demonstrated that the installation techniques for some of
the newer insulants being proposed for LNG are flawed.
The insulation system
The actual installation of the insulation system pipe, elbows
and fittings also needs to be considered. Installation practices
for those components can be extrapolated to the more complex
shapes encountered in equipment. Nominal pipe size can vary
from centimetres to over 1 m.
Polyiso and cell glass are manufactured as buns or blocks,
respectively. A typical polyiso bun of 40 kg/m density typically
has dimensions of approximately 1 x 0.6 x 2.5 m; or cut into
chunks of 1 x 0.6 x 1.2 m. Certain manufacturers can vary the
dimensions, optimally accommodate the nesting of repetitive
cuts, and thereby reduce waste during fabrication. A typical cell
glass block with 115 kg/m3 density can be produced in several
sizes, the largest of which may be 46 x 92 x 21 cm.
The buns and blocks are then fabricated into the shapes
required to cover the pipe, fitting, or component. It may be
necessary to glue multiple cell glass blocks together to achieve
the optimal dimensions before being fabricated into requisite
shapes. Ideally, the fabricated half-shells and any customised
shapes fit perfectly to the pipe or fitting with no air gaps (air
has minimal insulating value and can trap moisture).
An Insulation segment for a 1 m valve is huge, but can be
precisely machine-fabricated in many modern fabrication
facilities. Alternatively, insulation for a large fitting can be
fabricated in the field by manual labour using saws, scoops, and
hand-held routers. This latter approach can be even more
expensive, depending on labour costs, and the end-product is
likely to be of much lower quality. If field fabrication is the
choice, the trust but verify motto is pertinent, since poor quality
field fabrication can be a source of insulation failures during
start-up.
Layers and offsets
The insulant itself is typically applied in multiple layers in LNG
applications. Even though it is possible to fabricate a half-shell
 of polyiso insulation to virtually any thickness, layering allows
for staggered joints, which create a tortuous path for any water
vapour in an unlikely breach of vapour barriers. Generally, the
same holds for cell glass, yet the much smaller blocks must
be glued together to create large sections, and the weight
and brittleness of cell glass may limit half-shell sizes. Double
and triple layering is common in LNG facilities. A double layer
is typical when the overall insulant thickness is less than
12 15 cm , and a triple layer when greater than 12 15 cm of
insulation.
A joint sealer (zero water vapour permeability is ideal) is
typically applied on insulation longitudinal joints and butt joints
on all layers except the innermost to prevent moisture and
moisture vapour infiltration through joints/seams. Joint sealants
should be compatible with materials in which it has contact,
across the range of in-situ temperatures.
Note that the insulation thickness, the number of layers, and
indeed the entire insulation system, must be designed by a
competent engineer. For instance, the greater weight of cell
glass over polyiso combined with the lower thermal insulating
properties may dictate different thickness, layering, pipe
Figure 4. Elba Island LNG expansion loop.
Figure 5. Jacket installation over polyiso.
84 March 2017
hangars, expansion joints, etc. This brief article must not be
relied upon as design guidance.
Vapour barriers
While polyiso and cell glass each have excellent water vapour
transmission properties, the vast majority of LNG system
engineers specify the application of a vapour barrier sheet,
slightly overlapped and tapped, on the outermost layer of
insulation. The specifier/engineer may also require a vapour
barrier sheet over inner layers, particularly over the second layer
of a three-layer system.
As background, vapour retarders help slow the diffusion of
water vapour through an insulation system. Over the past
decade, material properties have been improved such that
vapour barriers can virtually eliminate water vapour intrusion. A
vapour barrier is usually defined as a layer with a permeance
rating of 0.1 perm or less (and several manufacturers offer
zero-perm products), while a vapour retarder is usually defined
as a layer with permeance greater than 0.1 perm, but less than
or equal to 1 perm. For a polyiso insulation system, the vapour
barrier is typically a zero-permeability sheet consisting of a
combination of aluminium foil and/or polyester film and/or
mylar. In a cell glass system, the final layer of insulation is
typically a coat of asphaltic mastic and an open mesh synthetic
fabric.
On top of the outermost vapour barrier, a metal jacket is
applied (aluminium or stainless steel), secured with stainless
steel straps (no rivets that could puncture the vapour barriers).
This jacket protects the vapour barrier from mechanical damage,
and can also improve the emissivity (the energy emitted from
the surface) and the reflectance (of solar radiation) of the
surface, as well as offer some protection to personnel.
Pipe coatings
It is important to mention that the design engineer should
specify whether any coatings should be applied to the pipe prior
to the application of the insulant. Many argue that coatings are
not required, but a competent engineer should examine the
corrosion resistance of the metals (which could range from more
exotic stainless steels to carbon steel) in the given environment
(wherein temperatures could be much higher than cryogenic
during cycling, shutdowns, and so forth). Cell glass installations
may require the use of a bore-coating on the inner surface of
the insulation in contact with the pipe if the piping undergoes
frequent temperature cycles or if pronounced vibration is
present.
Innovations
Both cell glass and polyiso have been in use for well over
50 years. During this period, cell glass itself has not changed
much, although there have been improvements in the requisite
coatings, adhesives, sealants, and mastics. Cell glass uses air
as the blowing agent within its cells. Air has poorer thermal
conductivities than other more exotic blowing agents, but
cell glass manufacturers would likely argue that they do not
need to refine their product since it is already environmentally
friendly, resistant to moisture and flame, has high compressive
strengths, and has reasonable insulating properties. It is left
to the engineers to evaluate all of the pros/cons of insulant
alternatives.
Polyiso, on the other hand, has evolved considerably, with
changes precipitated by external factors (e.g. Montreal Protocol),
INNOVATION

YORK-EVENFLOW
vane inlet device

Engineered for reliability.

As LNG demand increases, reliability is fundamental to avoid costly unplanned maintenance and production
shortfalls. For compact separators used in the liquefaction section of an LNG plant, feed distribution is a
critical component of the overall separator design.
Implementing the reliable YORK-EVENFLOW vane
inlet device in combination with the DEMISTER-PLUS
mist eliminator provides multiple benefits to your
separations application.
Integrated support structures increase mechanical strength
and allow installation through vessel manways.
Multiple welded vane ladders provide greater rigidity.
Engineered to your specifications for vertical or horizontal
vessels, YORK-EVENFLOW vane inlet devices separate
liquid away from mist eliminators and prevent
re-entrainment of droplets from the sump.
Applied in a high energy vapor stream entering through
a radial inlet, the YORK-EVENFLOW vane inlet
device decreases the momentum, facilitates the phase
disengagement, and provides good vapor distribution.

No vane inlet device. With YORK-EVENFLOW

vane inlet device.
YOU
OU CAN
YO RELY
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United States (316) 828-5110 | Canada (905) 852-3381 | Italy +39-039-6386010 | Singapore +65-6831-6500
For a complete list of our offices, visit our Web site.

www.koch-glitsch.com
For related trademark information, visit http://www.koch-glitsch.com/trademarks.
 as well as internal, manufacturer factors (e.g. improved and
more bio-friendly products). Polyiso uses increasingly complex
blowing agents, catalysts, fire retardants, etc. that are trapped
within dense cells, striving to continually improve insulant
performance, particularly thermal resistance at low
temperatures. Today, hydrocarbons, such as pentane, are
commonly used blowing agents in polyiso since they create rigid
foam. They are more environmentally friendly than prior
generations of blowing agents, while yielding a light weight
rigid foam with excellent thermal insulation and other physical
properties.
With respect to fabrication innovations, modern
computer-aided approaches and more sophisticated cutting
equipment allow for faster and more efficient fabrication of
shapes that can precisely match custom components. Shiplap, or
other more innovative joints, are also increasingly used to add
additional tortuous paths for any intrusive water vapour, possibly
eliminating an additional layer of insulant.
Case study
Phase II of the Elba Island LNG terminal included an 80%
increase in storage capacity at Elba and an increase in the
daily design rate of the facility by more than 350 million ft3/d.
Upon completion of Phase II, Elbas storage capacity totalled
7.3 billion ft3 with a send-out capacity of 1.2 billion ft3/d. The
expansion project included insulation of 31 895 ft of piping
with attendant polyiso insulation.
CB&I, the expansion project prime contractor, specified a
two-layer polyiso insulation system for LNG pipe insulation,
covered with a combination of zero-perm vapour barrier
sheeting, and enveloped in aluminium colour-coded jacketing.
Specifications demanded superior physical properties for system
components, as well as specific standards for shop fabrication of
shaped insulation segments, such as hemi-cylindrical sections,
pipe ells for small elbows, mitered sections for large elbows,
and tees.
The pipe insulation system scope connected the ship
unloading facility with the storage, recondensing, and send-out
system, plus the insulation of valves, fittings, and components.
The insulation system typically consisted of double-layer
insulation for piping with outside diameters varying in size from
3.5 to 41.25 in. Dyplast shipped over 1.25 million board feet of
Figure 6. Elba Island LNG pipe run.
86 March 2017
ISO-C1, in 43 semi-trailers within a period of five months, while
maintaining committed shipments to other clients.
After contract award, Dyplast Products worked with its
fabrication and installation partners to closely examine
manufacturing cost savings, transport economies, fabrication
and installation efficiencies, and possible innovations given the
specific sizes, quantities, and shapes of insulation to be
fabricated. The companys ability to customise polyiso bunstock
dimensions meant that bun sizes could be matched to minimise
waste as Dyplast cut the bunstock into blocks (pipe chunks),
which were, in turn, sized for minimising waste during shape
fabrication by the fabricator, Insulation Materials Corp. Optimally
sized pipe chunks also allowed for efficient packing in
transportation containers.
Dyplasts offering incorporated fabrication to support
innovative approaches, such as larger/longer insulation sections,
interlocking segments, closer tolerances, complex routed shapes,
factory-applied laminations, etc., which reduce installation
labour, minimise waste, reduce system vapour permeance, and
optimise thermal performance. Just-in-time deliveries also
mitigated the downside of adequate storage limitations on-site
and budget constraints.
The net result was an insulation system that complied with
all requirements while adding additional value to the project in
terms of costs and schedule. There was no unanticipated
downtime, neither during start-up nor in the first months of
operations due to the insulation system. 10 years later, there
continues to be no downtime, failures, or excess maintenance
due to the insulation system.
Conclusion
Insulation installation provides a good example of where an
owner or turnkey contractor can underestimate the impact and
the complexity of an LNG system whose initial capital cost,
potential impact on schedule, and long-term performance can
have an oversized impact on financial success. While owners and
contractors are increasingly recognising the complexities and
the impacts of the insulation system and its installation, this
article points out the need for up-front knowledge of the issues
and their incorporation into specifications, contracts, and the
selection of installation contractors.
For instance, an insulation system installed with a single
flaw in the vapour barrier can impede start-up. An insulation
system with longitudinal joints at 12 oclock is less
risk-mitigating than one at 3 oclock. Different insulants require
vastly different installation techniques. Up-front coordination
between the engineer/designers and the installation contractor
can be invaluable. Just-in-time deliveries and
properly-considered insulant storage strategies can not only
minimise breakage and moisture absorption within the insulant,
but also better optimise cash flows. Shop fabrication of
insulation segments for valves and fittings can greatly reduce
labour costs, etc.
Ultimately, insulation system design, installer selection, and
installation planning should optimally be coordinated early and
simultaneously. By so doing, the LNG facility will be less
susceptible to failures during start-up and operations, and will
likely be much more energy and process efficient over the years.
Any additional cost of proactive attention to detail in the
insulation installation will yield considerable return on
investment.
 Mediterranean
small scale LNG
becomes a reality

HigasSardiniaterminalin
Santa Giusta (Italy).

Mauro Evangelisti or many years, LNG has been used as fuel to generate

and Sara Evangelisti, F electrical power, provide domestic heating, and to provide
energy for industrial purposes. Usually, it is transported
from suppliers to users in large quantities by means of pipelines

Gas and Heat S.p.A., Italy, or very large gas carriers.

This industrial sector is frequently addressed by the business

look at the development community as large scale LNG.

In recent years, the use of LNG has also been envisaged for

of the Mediterraneans maritime propulsion, land transport, and the commercial and
industrial sectors. It has also been envisaged as a source of

first small scale LNG energy that can be easily deployed to stranded places that
cannot be connected to gas or electric power national grids.

storage terminal, located in This new industrial sector is often addressed by the business
community as small scale LNG.

Sardinia, Italy. On 27 January 2017, a Ministerial Decree for the authorisation

to build and operate a small scale LNG terminal in Sardinia, Italy,

87
 was granted by the Italian Ministry for Economic Development.
Once built, this will be the first small scale LNG terminal in the
Mediterranean area. Gas and Heat S.p.A, which specialises in the
design and in-house construction of cargo handling systems for
ships carrying liquefied gases, gained the permits for the special
purpose entity (SPE), Higas.
The maritime sector
Due to increasingly strict environmental regulations controlling
air pollution from ships (implemented through the International
Maritime Organization (IMO) Annex VI) and other local air
quality controls, as well as the potential for favourable price
conditions, the use of LNG as a fuel is expected to become more
widely adopted in the future.
Norway is currently leading the way (with Finland set to
follow), and is making significant investments in new facilities.
However, the construction of LNG vessel refuelling facilities is
also being planned in Rostock (Germany), Gothenburg (Sweden),
Turku (Finland), Teesport (the UK) and the Baltic States, set to
commence within the next two or three years. Furthermore,
France, Spain, Italy, Denmark and Greece also have plans for the
near future. For the time being, all LNG bunkering operations are
carried out via truck-to-ship, which requires the designation of a
specific bunkering area and the amendment of port regulations.
The land transport sector
The European Agency of Energy Regulators (ACER) forecasting
model shows that gas consumption in the land transport sector is
Figure 1. Gas and Heat gas fuel supply system.
Figure 2. Gas and Heat double wall vacuum insulated gas
fuel tank for an LNG fuel system.
88 March 2017
expected to play a significant role in the next decade, providing
that the appropriate conditions for market development exist
by 2025. The potential of CNG in road transport could hence
increase to 23.90 billion m, and LNG in road transport to
34.5 billion m, corresponding to 7.5% and 20% of the final
energy consumption in transport, respectively.
The construction of LNG terminals in the EU will be key for
the diversification of energy supply and for the adoption of
natural gas as fuel for vehicles.
LNG terminals
Permitting requests for small scale LNG storage terminals
have been increasing in the last few years all over Europe. The
Italian government too, being a Member State, is implementing
specific measures and regulations to create LNG storage
terminals and distribution points in Italy. In particular, the
Italian Ministry for Economic Development has set up a
national working group to develop an LNG strategy including
regulation, technical and economic aspects, as well as safety
and social impacts related to the use of LNG for maritime and
road transport.
In this framework, Italian company Gas and Heat has been
working in the last four years to design and build the first
small scale LNG terminal in the Mediterranean area, capable of
delivering LNG to energy-consuming small and mid-sized
plants, LNG-fuelled trucks and LNG-fuelled vessels, as well as
natural gas to the local grid.
It is important to note that supplying technologies for
small scale LNG does not mean simply downsizing
technologies applied in the large scale sector. Smart and
tailored innovations are required to generate the most
cost-competitive and sustainable solutions, increase efficiency
and safety, and eliminate unnecessary costs and complexities.
The chicken and the egg
conundrum
The main drivers to switch from oil to LNG are that LNG
is environmentally friendly and cost-effective compared to
traditional fuels.
Feeding and bunkering infrastructures are still in their
initial phase, while the European Community has implemented
its decision to support the use of LNG as fuel, with the
adoption of incentive policies and guidelines for both maritime
and automotive propulsion
On the other hand, since infrastructure availability is still
uncertain, shipowners are prevented from committing their
capital in using LNG as fuel
The result is a lack of investment, neither for bunkering,
nor for shipping sides. Obviously, there needs to be a solution.
In 2014, Gas and Heat, together with its partner,
CPL Concordia, established a new company called Higas, with
the aim to design and build the first small scale LNG storage
terminal in the Mediterranean area. The terminal was designed
to be located in Sardinia, where natural gas is not available. In
2015, a third partner was welcomed on board
Stolt Nielsen Ltd Co.
The statutory working scope of Higas has been focused on
the entire LNG supply chain for Sardinia along with all
complex variables, including the LNG sourcing, transport from
the loading terminal to Sardinia, the terminal there, and the
distribution to local onshore offtakers (both industrial and
civil).
 Sardinia Terminal layout
The main reason to site the terminal in Sardinia is because it The plant will store 9000 m3 of LNG, which is equivalent to
is the largest island in the Mediterranean Sea where natural approximately 4500 t of LNG. The terminal will be fed by a
gas is not available. The Regional Energy Plan for the period 7500 m3 LNG carrier built by Stolt Nielsen. The vessels cargo and
2015 2030 states that the objective, amongst others, is to gas fuel system will be designed and supplied by Gas and Heat,
guarantee regional users access to natural gas by 2020, at the which is also the engineering, procurement and construction
same conditions that the other Italian regions experience. Several (EPC) contractor of the terminal.
studies have compared the economic situation in Sardinia to The main features of the terminal are as follows:
the rest of Italy, and have concluded that the lack of accessibility z The LNG is stored in six cryogenic tanks, aiming to create a
to natural gas is one of the main weaknesses of the regions modular containment system, which can be easily subdivided
economy.
Sardinias lack of natural gas availability ensured that the
terminals business plan would be sustainable. Indeed, the major
input to the project feasibility study was the islands energy
demand. The actual offtaker forecast only considered bunkering as
a future additional opportunity.
Presently, Sardinia relies significantly on fossil primary
resources to produce electricity. The region is, in fact, an electricity
producer, with 14 535 kWh of gross electricity produced in 2012
and 2348 GWh exported.
The same is valid for the actual primary resources used to
produce civil and industrial heat. Approximately 60% of the civil
heat is produced by fossil resources, which are instead almost the
only source for industrial heat.
At the time of writing, 38 gas city grids were planned, but
only some of them in operation and few others under
construction. The Sardinian LNG terminal, located in the port area
Figure 3. Gas and Heat cargo tanks for liquid gas
of Santa Giusta, Oristano, will eventually be connected to grids in transportation lifting on board in Eregli, Turkey.
order to serve civil users.

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 Figure 4. General arrangement of 7500 m3 LNG carrier for Higas Sardinia terminal (courtesy of Marine Engineering Service).
when the users initial demand might be lower than total
capacity in use. Alternatively, it can be expanded when
bunkering might become a solid opportunity.
z The LNG is loaded onto tank trucks for inward distribution
to civil and industrial users, as well as to the micro gas
network with medium pressure users in the nearby area.
z The terminal is also capable of reloading the LNG to a
transport vessel for bunkering LNG-fuelled ships, as well as
loading satellite tanks located elsewhere.
z The terminal is located in a harbour area, where some
energy-consuming mid-sized industries are also closely
placed. In addition to this, the urban areas of Oristano and
Santa Giusta are a few kilometres away, and the existing
gas grids will be easily connected to the terminal. These
offtakers represent the ideal users of the boil-off gas
(BOG) that is naturally generated in the terminal LNG
containment system, thereby avoiding any energy waste
in reliquefaction and leading to relevant savings in both
CAPEX and OPEX.
z The containment system is designed as full containment
so that any vapour or liquid potential leakage shall be
collected into the secondary barrier and flared out, thereby
ensuring no gas leak is released into the surrounding
environment. The first barrier (in direct contact with the
LNG) is made of austenitic steel, whereas the secondary
barrier is made of concrete and perlite.
z The port of Santa Giusta, where the terminal is located,
boasts all of the necessary infrastructures to handle
mid-sized LNG carriers and bunker vessels while operating
for the terminal, ensuring compliance with all safety
requirements set by the fire brigade, port authority and
coast guard.
Building and operating permits
Prior to starting the construction of the plant, local and
national permits needed to be granted by the relevant
authorities. Presently, no harmonised permit realising path
exists in the EU and, therefore, specific country-based laws
needed to be followed.
Gas and Heat was charged by Higas with running the
preliminary risk assessment study (PRAS) and the
90 March 2017
environmental impact assessment (EIA) for the small scale LNG
terminal in Sardinia. The PRAS had substantiated the
application at the Regional Fire Brigade department for
obtaining the permit to build the plant (Nulla Osta di Fattibilit,
NOF), which was granted in June 2016. The EIA procedure was
concluded with the Regional Environmental Protection
department in July 2016. Finally, the procedure to obtain
authorisation from the Ministry to build and operate the plant,
under the jurisdiction of the Italian Ministry for Economic
Development, started on 17 May 2016 and was granted at the
end of October. On 17 January 2017, the Ministerial Decree,
issued by the Italian Ministry for Economic Development,
eventually completed the whole permitting procedure.
The experience gained by Gas and Heat in securing all of
the permits for the Sardinia terminal has been considered by
the involved authorities as the starting line for many similar
investments likely to come in the future. For this reason, the
companys assistance has been sought after by the Ministry
while drafting the pillars of the new law which will represent
the national rules on building and operating small scale LNG
storage terminals in Italy.
Conclusion
Despite the oil slump, investments in small scale LNG are
possible, providing some key factors underpin the project
properly. Furthermore, it must be considered that one single
terminal and the availability of LNG in a specific area will
generate a number of business opportunities in different
related sectors. For instance:
z The use of LNG as fuel will become more tempting to truck
fleet owners.
z Shipowners, particularly those of ferries in Italy, will
increase their investments in LNG-fuelled vessels (both
newbuilding and refitting of existing tonnage).
z Civil and industrial users will switch from oil/LPG to natural
gas, thus generating the need for building city grids and
containment/vaporisation satellites.
z Fuel stations able to deliver both LNG and CNG will be
built.
Nevertheless, it is important to note that other countries
will require different permitting realising paths.
 SUPERIOR
G E
O RA
ST
Figure 2.
A 22 t roof
segment being
lifted onto the tank.

Paul Whayman n the present economic climate,

and Mark Meyts, I demand for new LNG storage facilities

has diminished from its peak a few
years ago. Fewer projects on offer and
Technodyne increased expectations from owners mean
that projects are being won by optimising
International Ltd, quantities and schedules, with lower
margins for the engineering, procurement
UK, outline recent and construction (EPC) contractors.
Until the early 2010s, project schedules
developments in for the design and construction of large full
containment LNG tanks (160 000 m3
LNG storage tank capacity or more) varied between 36 and
48 months. Today, schedules are often
design. 28 months or less.

91
 Background
Most large LNG tanks are of the full containment
type, where the primary inner liquid container is an
open top cylindrical tank fabricated from 9% nickel
steel. This is surrounded by insulation and a secondary
liquid/vapour container. The outer tank is designed to
remain vapour-tight in service, and retain the liquid in the
event of a leak/spill from the inner tank, while allowing
controlled venting of the boil-off gas (BOG). Generally,
the outer container is constructed from reinforced and
prestressed concrete.
Smaller tanks with volumes up to 20 000 m3 are
usually of the single containment type, where the outer
container acts as the vapour barrier and for the retention
of the insulation. The outer container is generally
manufactured from carbon steel and is not designed to
retain the liquid product. In the event of a leak/spill from
the inner tank, the liquid is retained by an external bund.
Technodyne International Ltd (a member of the
TGE Group) has met the economic challenge by optimising
civil and mechanical design, combining foundation and
structural design, parametrisation of a large database of
increasingly optimised previous designs, and lessons
learned from construction. Significant investment in
computer-aided design (CAD), analysis tools and
development of in house programmes and databases have
enhanced the speed and efficiency of the design process,
starting with a confident early definition of the optimum
tank ratio (greatest height to diameter ratio allowed by
the seismic conditions) and slab/wall/roof thicknesses to
achieve best cost and constructability.
Optimisation
LNG receiving and storage terminals are often built
in challenging natural environments. Most are built
in remote coastal regions where, apart from extreme
weather conditions, such as typhoons, there can be
difficult ground conditions and exposure to high
earthquake risk. These factors pose the biggest challenges
to designers and ultimately the constructors of the
Figure 1. Plot from the initial computational fluid dynamics
(CFD) model showing temperature profile under tank with
forced convection.
92 March 2017
LNG storage tanks. The design of each individual tank
requires complex structural analysis involving dynamic
soil-structure interaction and seismic response. This
analysis can often take several months at the start of a
project and involve iterations if the dimensions of the
tank initially modelled are found by the analysis to be
inadequate; for example, if the loads on the piles exceed
their structural/geotechnical capacity in load-bearing,
bending, or uplift.
The design of the structural parts of LNG tanks to be
constructed first are always those parts that can not be
seen when the project is complete: ground improvement;
deep piled foundations; anti-seismic components; and
internal structural elements. These parts always lie on the
project critical path, and so the focus has been to
optimise their design and construction times.
Some LNG tanks require deep piled foundations, often
with more concrete in the piles than in the containment
structure above ground.
The significant lead time for the manufacture of
cryogenic reinforcement and its shipping to remote
locations across the world can also lie on the critical
path, because it relies on complex non-linear analysis to
accurately determine the quantities to be ordered.
Until the early 2010s, the design of large full
containment LNG tanks (160 000 m3 and more) involved
many iterations to optimise dimensions, quantities and
constructability. Project timeframes varied between
36 and 48 months for design and build according to the
complexity of the site geotechnical and seismic
conditions.
The use of design tools, such as finite element
analysis (FEA), computational fluid dynamics (CFD)
and 3D CAD systems, has enabled optimisation of some of
the key external and internal structural elements. Working
in close partnership with construction teams from
TGE Gas Engineering, Technodyne has enabled their
designs to be tailored to suit latest construction practices.
Starting with the foundations, the pile layout was
optimised and CFD was used to demonstrate the improved
natural ventilation. Figure 1 shows a typical CFD plot.
Quantities of piles have been optimised to provide a
more efficient use of materials and save construction
time, while being forgiving of piles built out of position
through the robust design of the slab.
The internal steel roof and liner design have been
optimised for material usage and to allow prefabrication
on or offsite, meaning that the final segmented
installation has minimal disruption to external civil works.
Figures 2 and 3 show the roof assembly for the two
160 000 m3 tanks in Zhoushan, China.
The use of 3D CAD design for external structures and
piping, as shown in Figure 4, has enabled a more efficient
design process. The ability to combine the tank, nozzles,
piping and external structure into one model has enabled
designers and client operations and maintenance teams
to visualise and provide input. The team benefit was
client ownership before fabrication and construction. The
design was improved through more efficient layouts. The
system used allows production of shop fabrication
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 drawings directly from the model, hence eliminating
problems with poor fit up. This process has reduced
construction and commissioning times.
With an extensive database (to European, Chinese and
US design codes) and a parametric approach to key
structural elements, the preliminary design of a new tank
project can now be established within a few weeks of
contract award. Typically, this would include a civil bill of
quantities, indicating long lead materials, such as
cryogenic reinforcement and prestress components. These
can be issued with confidence before starting detailed
analysis. This allows the procurement teams to make their
enquiries and place initial orders for the long lead items.
Preliminary drawings for construction information are
then issued to site some weeks later. Detailed structural
analysis, including the required soil-structure interaction
and seismic response, are often no longer on the critical
path because of the specifically robust nature of the base
slab design, and confidence in the relation between tank
parameters and design dimensions. Drawings are issued to
site for mobilisation, execution of test piles and material
procurement while detailed analysis and the design
justification reports are completed.
Conclusion
Over the past 10 years, design optimisation has improved
the structural efficiency and construction cost of LNG
tanks. This has helped the schedule by reducing quantities
of materials. For a representative LNG tank of 160 000 m3
capacity, the following has been achieved:
Figure 3. The 22.5 t and 10.5 t segments of this 80 m dia.
dome were installed and final assembly, including suspended
deck, was completed within 10 weeks.
Figure 4. From computer-aided design (CAD) to construction and commissioning. Technodynes
3D CAD model of the 20 000 m3 LNG tank design and the commissioned final tank.
94 March 2017
z 10% reduction in the number of piles.
z 5% reduction in the cost of a base slab (time,
materials and labour) as a result of the simplified
structural concept.
z 5% less prestress.
z Shrinkage cracking in piles, slab and wall reduced to
levels which do not require repair.
z Optimised pile layout improves air flow through
the ventilated void under the tank and avoids
condensation in service conditions.
z The innovative optimised structural design of the slab
and piles pre-empts piles being built out of tolerance
and non-uniform soil conditions. As a result, the
impact of construction deviations is minimised and
their evaluation by the design team often results in no
need to make any change to the tank design.
z Up to a 25% reduction in the mass of the steel roof
structure on the inner face of the concrete dome.
z Up to a 20% reduction in the mass of the suspended
deck.
z 25% reduction in time for producing nozzle detail
drawings.
z 40% reduction in time for external structures detail
drawings.
z Reduced delays to construction caused by the need
to clarify or modify the design for the needs of
construction.
Significant improvements in the constructability of the
tank have been achieved by regular contact between
designers and construction management, with regular
visits to site. Lessons have been learned from incidents,
difficulties and deviations in construction, with
supervision actively encouraged to report problems to the
designers to enable subsequent tanks to be designed to
avoid situations that contributed to those incidents and
construction difficulties.
As a result of the optimisation of the critical
design/construction path, the reduction in material
quantities, the enhanced robust structural design of the
slab capable to deal with construction deviations, and
constantly improving constructability, design and build
programmes for large LNG tanks (160 000 m3 and more)
have been reduced to 28 months. Costly delays, design
verifications and
modifications resulting
from as built conditions
deviating from design
have also been
significantly reduced.
Reduced construction
times and simplified
construction methods
have contributed to
improved safety
performance on the
construction of large LNG
tanks.
Yamal LNG:
assessing the
risks
Christian Bladanet,
TechnipFMC, France, looks at
the extreme design challenges
faced during the development of
the Yamal LNG project.

he Yamal LNG project is, in many ways,

T taking engineering practice beyond the usual

boundaries. In an industry where innovation
is often synonymous with a limited number of small
steps forward, the Arctic location of the Yamal LNG
facility (Figure 1) requires that the usual industry
solutions are thoroughly checked and further
developed to reach a higher level of robustness.
It also calls for the development of innovative
methodologies to manage new designs, while
keeping costs at a reasonable level.
The harsh weather conditions and difficult
logistics make it even more important than usual to
ensure that everything is done correctly the first
time, as any carry-over work would drastically impair
project execution.

95
 This article will describe a number of practical
examples of the challenges that have had to be overcome,
and the solutions implemented, to make the Yamal LNG
project possible.
Extreme conditions
A joint venture (JV) between TechnipFMC (50%), JGC Corp.
(25%) and Chiyoda Corp. (25%) is executing work for
the Yamal LNG project, owned by Novatek (50.1%), Total
(20%), CNPC (20%) and Chinas Silk Road Fund (9.9%). The
project is an integrated complex for natural gas and gas
condensate production, consisting of three 5.5 million tpy
trains located close to the Sabetta settlement. It will
receive gas produced from the South Tambey Field, located
in the Northeastern part of the Yamal Peninsula, in the
territory of the Yamal-Nenets Autonomous Okrug.
At Sabetta latitude, the weather is extremely harsh. In
winter, wind gusts reach 144 km/hr and temperatures can
be as low as -50C with an annual average of -10.5C.
There is almost no natural light during the five winter
months, and the sea is frozen for seven to nine months per
year.
Figure 1. Location of the Yamal LNG plant.
Figure 2. Evolution of the temperature in a system, after a shutdown followed by
depressurisation.
96 March 2017
These extreme weather conditions, along with extreme
site remoteness, required the project team to adopt a
different mindset compared to a usual plant design in arid
or tropical areas. In a territory where water freezes in
seconds and propane is naturally a liquid, the temperature
reference of the design engineers had to be decreased by
several dozen degrees Celsius.
This raises unusual design issues, including material
selection, plant preservation under limited power
availability, permafrost and ground stability.
Although the Yamal LNG project uses
Air Products well known AP-C3MR process, a parallel
compressor arrangement was adopted. Split-MR line-up
allowed full use of the higher power available from the
cool ambient temperature, and to reach a capacity that
would not have been possible with refrigerant compressor
configuration. Finally, the remoteness of the plant also
makes corrective actions on site far more challenging.
Material selection
In the harsh weather conditions encountered in the
Sabetta Peninsula, the selection of proper piping and
construction materials has to take into consideration
not only corrosion and process temperatures typically
reached in an LNG plant, but also the extremely low
ambient temperature, which differs significantly from
a Middle Eastern or Asian LNG plant. In particular, the
calculation of material temperature during emergency
depressurisation must consider the possibility that parts
of the plant could have been idle after a shutdown, and
would cool down before depressurisation is initiated. The
easy solution for this situation would be to use stainless
steel throughout the whole plant. However, such a decision
would have a dramatic effect on the plant cost, and would
have compromised the economic viability of the project.
In order to minimise the use of stainless steel, the
process team calculated, for each depressurisation system,
a minimum initiation
temperature (MIT), for
which the temperature
reached during the
emergency
depressurisation of this
system remains above the
minimum temperature
allowable for low
temperature carbon steel.
This is illustrated in
Figure 2, where the
temperature of a system
after a shutdown, through
emergency
depressurisation, is
plotted over time. The
plain curve represents a
system that naturally
cools down (shown as a
straight line for the sake
of simplification), until it
reaches the ambient
temperature, and is then
depressurised. The dotted
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 curve represents the same event, but with the
depressurisation initiated when the system reaches the MIT,
itself set to prevent the system temperature from
decreasing to below the minimum design temperature of
Figure 3. Schematic description of thermosyphon
installation and principle.
Figure 4. Thermosyphon heat pipes installed on Yamal LNG
site.
Figure 5. Temperature variation over 22 years with insulation and thermosyphon protection.
98 March 2017
equipment and piping depending on pipe diameter and
rating.
In parallel, the time for the systems to cool down was
calculated for various ambient temperatures, in order to
assess the time at which the MIT would be reached after a
shutdown, for the different piping section and diameter.
From these two studies, TechnipFMC defined which
parts of the system were at risk. Depending on the
criticality of the results and the time left for the operator
to take action, one or more of the following measures were
specified:
z Thermal insulation specifically designed to avoid
ambient chilling.
z High reliability (redundant) heat tracing.
z Use of stainless steel.
Permafrost protection
The Yamal LNG flare stacks are installed on foundations
built into the permafrost. During flaring, the permafrost
ground temperature will be warmed up by the heat
radiation. If the permafrost temperature rises above 0C,
there is a risk that significant surface settlement will occur,
resulting in destabilisation of the flare foundation.
To evaluate this risk and the mitigation measures, a 2D
finite element computer model was built. The model
simulates transient, 2D heat conduction with change of
phase for a variety of boundary conditions. The heat
exchange at the ground surface is modelled considering air
temperatures, wind velocity, snow depth, and solar
radiation. The studies focused on long-term relief event
corresponding to the start-up of the LNG trains and yearly
scheduled maintenance over the lifetime of the plant.
The ground temperature was calculated at several
depths, and over the lifetime of the plant, for various
systems of protection (several insulation layer thickness,
installation of thermosyphons, Figure 3).
Thermosyphons are naturally circulating heat
exchangers, or heat pipes (Figure 4), installed to chill the
ground during winter months and balance, on an annual
basis, the heat input from the flare or, more generally
speaking, from the facility. They are commonly used in
permafrost areas to
compensate heat ingress
from man-built facilities.
The evolution of the
ground temperature over
22 years at 10 m and
30 m depth, with and
without permafrost
protection, is shown in
Figures 5 and 6,
respectively. These
figures illustrate that the
temperature of shallow
ground increases steadily
when no protective
measures are taken.
When an insulation layer
and thermosyphons are
installed, the situation
becomes acceptable, and

Figure 6. Temperature variation over 22 years, without permafrost protection.
Figure 7. Views of concentration fields of maximal cloud
expansion 20% LFL.
even improves the permafrost ground temperature. Using
this model, the optimum density of thermosyphons, and
thickness of the insulation layers, has been determined.
Plant preservation
The Yamal Peninsula climate is hostile to any human
activity. Any failure of critical systems, such as power or
utilities, in mid-winter is likely to be more severe than on
any other industrial facility in the world. As is typical for
an LNG plant, no connection to an external power source
is available. Therefore, it is of the utmost importance to
identify any potential risks of failure of critical systems and
ensure that they are properly mitigated.
A risk identification and assessment study was
performed to analyse the risk profile of the LNG complex in
case of loss of normal power supply to ensure that the
plant can reach a safe and preserved state in all cases. A
brainstorming exercise was carried out to identify all
potential causes of a plant black-out. Once these were
100 March 2017
identified, the
probability of occurrence
and the impact on
personnel safety and
plant operation were
assessed. All potential
causes have now been
classified under one of
the following three
categories:
z Acceptable.
z Acceptable with
preventive/recovery
measures.
z Unacceptable risk.
For the most severe
scenarios, further
mitigation studies and
quantitative analysis
were performed to
decrease the risk to an acceptable level. For example,
dispersion studies of gas leaks were carried out to
demonstrate that gas leaks will not escalate to shutdown
systems critical to power and heat supply.
Figure 7 shows the contour of the gas cloud in case of
a major gas leak. As the cloud does not reach the
emergency diesel generator (EDG) located at the far left
of the image, it demonstrates that this event will not
prevent the EDG from operating, and can thus be rated as
acceptable.
In addition, the following three different preservation
scenarios have been studied to ensure that the facility
will be safe and will not suffer unacceptable damage in
the event of scheduled or unplanned overall shutdown:
z Planned preservation defining the action to be put
in place for a scheduled, long duration shutdown,
although with power available.
z Emergency preservation corresponding to an
unplanned black-out, with only essential power
available to maintain heat tracing and essential
utilities. Emergency measures are provided to cater
for the unavailability of the main power, allowing
for a relatively quick start-up once the situation is
corrected.
z Force majeure preservation defining the actions
to be undertaken before plant evacuation in case
of a catastrophic event to ensure the safety of the
operators and personnel, and to prevent further
damage to the installation.
A complex refrigerant
compressor string
The Yamal LNG plant uses the AP-C3MR process. To
take advantage of the low ambient temperature, and
bring the plant capacity beyond usual performances,
the refrigerant compressors are arranged in a 2 x 50%
parallel configuration instead of the typical series
arrangement.
 The process control of this Streamline distribution Coloured by velocity (m/s)
line-up is a challenge in itself,
since all compressors rotate at
the same, virtually fixed, speed.
Early on in the project, it
was jointly agreed with the
plant owner to adopt a
multi-disciplinary surveillance
program, addressing the
technological difficulties and
defining milestones critical to
the plant design: process,
geotechnical, civil and
mechanical, from engineering
up to commissioning and
start-up phases. The main
objective of this program was to
confirm that all aspects related
to design robustness, testing
and safe operation were Sidestream-1 (SS1) Sidestream-2 (SS2)
addressed and that potential
risks for the project were
mitigated. Figure 8. Streamline distribution in two of the propane compressor sidestream (image
To validate the mechanical courtesy of GE Oil & Gas).
feasibility and robustness of the
assembly, a thorough train
torsional analysis was performed on the shaft, as well as
computational fluid dynamics (CFD) simulations of the
propane compressor inlet sidestreams (Figure 8). The first
compressor train underwent a full speed full load test at
the GE Oil & Gas test facility in Massa, Italy (Figure 9), fully
validating the performance and the mechanical behaviour
of the complete compressor string.

Dynamic behaviour of the

process
To assess the behaviour of the process during transient
periods, several dynamic simulations were performed.
Air Products ran the overall dynamic simulation, while
GE Oil & Gas performed further simulations centred on the
compressors, and replicating the antisurge and load sharing
algorithms implemented on the machine control system.
The following three scenarios were explored:
z Unplanned shutdown of one compression string.
z Restart of the second compression string while the first
one is in operation.
z Feed gas booster compressor trip.
GE also performed detailed dynamic simulations to
design the antisurge and hot gas bypass valves, and tune
the compressor control and load sharing system to achieve
safe start-up and stability of the compressor trains.
One of the main difficulties that had to be overcome
was the coordination and integration of the two dynamic
simulations, which had to be consistent at their respective
battery limits.
Time dependent boundary conditions resulting from
overall process simulation were used as input for the
compressor simulation. Through this process, the two
models reached convergence after a few iterations and
Figure 9. String test facility at GE Oil & Gas workshop
(Massa, Italy) for Yamal LNG (photo courtesy of
GE Oil & Gas).
confirmed the suitability of the process arrangement
and control system to start, operate, and shut down
the compressor satisfactorily.
Conclusion
The challenges raised by extreme weather conditions,
the remoteness of the Yamal peninsula and an
innovative refrigerant compressor arrangement,
required a thorough identification and assessment
of the risks involved. From the early stages of the
project, these risks have been objectively evaluated
and analysed by all the parties involved, and
mitigation plans have been implemented.
These mitigation plans required a number of
studies, as well as the use of the latest design and
innovation management tools. They force
outside-of-the-box thinking to achieve safe and
flawless start-up and operation of the plant under
exceptional scenarios.

March 2017 101

 tt,
Rune Kno
ts i l , N orway,
W r
o o k s a t h ow LNG
l
ture is
infrastruc
pt in g t o help meet
ada
e r e q u i r ements of a
th arket.
a n g in g m
ch

Changing
g g with the

he increasing global emphasis on green energy as a tool in the

T fight to combat climate change has led to ever more stringent

environmental regulations that are affecting both the energy and
the marine industries. In order to achieve compliance and, in many cases,
to be seen as a good corporate citizen, electricity providers and shipping
companies are increasingly turning to natural gas fuel in order to lower
their carbon emission levels.

The gas infrastructure

For the most part, current LNG infrastructure is large scale and of limited
reach. The spot trading market in oil has been so dominant that the
infrastructure has been built to reflect this dominance. Now, however,
the market is also driven by environmental pressures and by the fact
that many countries want to reduce their dependence on oil. With
a smaller format than the current infrastructure, a widened
implementation of LNG could fundamentally alter the gas
equation.
The question, of course, is which comes first?
The end users (ships, power plants, industrial

102
103
 facilities), or the infrastructure to support them? The evidence
indicates that as soon as a consumer needs a certain amount of
LNG, someone builds the necessary supply chain to support that
need. Hence, supply and demand will reinforce each other going
forward as small to mid scale installations enter the market. In
Europe, large import terminals have not previously been well
prepared to accommodate small scale activities. Everything, from
capacity to the size of the pipes, is too large, but the situation is
changing and smaller needs are increasingly being catered to. For
instance, Wrtsil is building smaller terminals and satellite
terminals, as well as mini and small scale liquefaction, storage
tanks, boil-off gas (BOG) handling, and regasification systems.
Case study: Milford Haven, UK
Dragon LNGs terminal in Milford Haven, UK, has been in
operation since 2009. The terminal has two 163 000 m3 capacity
LNG storage tanks. In times of demand, the liquefied gas is
pressurised, regasified, and delivered to customers via the
National Gas Transmission System (NTS). When gas is not required
for delivery, the BOG from the storage tanks is utilised for on-site
power and steam production.
To serve the versatile British gas market, Dragon LNG
required a flexible BOG handling package to be incorporated into
the terminals facilities so that the BOG could be reliquefied
during zero send-out times. One of the main benefits of the
flexible BOG handling system is its rapid reliquefaction response
time over a variety of BOG compositions and flowrates. Whilst on
cold standby when gas is being distributed to the NTS, power
consumption for the BOG reliquefaction package (RP) is
minimised to save electricity.
Figure 1. Dragon LNGs terminal in Milford Haven, UK, has
been in operation since 2009, and has two 163 000 m3 capacity
LNG storage tanks (photo courtesy of Dragon LNG Ltd).
Figure 2. The Tornio Manga LNG terminal in Tornio,
Finland, will be the largest LNG terminal in Finland with a
50 000 m3 capacity (photo courtesy of Wrtsil).
104 March 2017
The BOG RP enables Dragon to maintain a zero gas flare
policy at the terminal during normal operations. This ensures
compliance with the regions environmental requirements. The
system also replaces the existing on-site power and steam
generating plant, which has been fuelled by BOG from the tanks.
This provides higher yield factors in times of gas send-out to the
NTS. The BOG RP is scheduled to be fully operable by early 2017.
The delivery of this first LNG terminal reliquefaction package
includes the refrigerant handling system, the cold box and the
LNG pumps. The refrigerant system is based on Wrtsils reversed
Brayton cycle with nitrogen as the sole refrigerant.
The decision by Dragon LNG to install a BOG RP at its
Milford Haven terminal represents a significant milestone in
enabling fast response to the demands imposed by an
exceptionally versatile gas market.
Case study: Tornio, Finland
Finlands largest LNG terminal is currently under construction
in Tornio in Finnish Lapland. The 50 000 m3 facility is being
constructed by Wrtsil under a turnkey engineering, procurement
and construction (EPC) contract. It is scheduled to begin
operations in 2018.
The new Tornio Manga LNG terminal will notably increase
the possibilities for industries in Northern Finland and Sweden to
utilise natural gas for the first time, thereby expanding their
choice of fuels. In particular, local road transportation companies,
power and heat utilities, steel mills and mining operations will
benefit. It is also expected that the terminal, which is located on
the coast in the environmentally sensitive Arctic region, will serve
shipping companies as well. The Baltic Sea is designated as a
sulfur emissions control area (SECA) by the International Maritime
Organization (IMO), which means that vessels sailing these waters
have to either install exhaust scrubbing systems, or switch to
cleaner fuels, such as LNG.
Wrtsil has since signed a turnkey contract with the energy
company Raahen Voima, to supply a satellite LNG receiving
terminal to be built in Raahe, on the west coast of Finland. The
scope includes two LNG vacuum insulated storage tanks with a
combined net volume of 1400 m3, an LNG regasification system,
truck loading and unloading functions, and all required civil
structures. The LNG terminal is scheduled to be operational in
April 2018. The LNG will be supplied to Raahe by trucks from the
Tornio Manga facility.
The main user for the natural gas from the terminal will be
the SSAB Raahe steel mill. By using LNG to generate power and
heat to the mill, SSAB will be able to move to cleaner energy
production and notably reduce its CO2, NOx and SOx footprint.
Conclusion
In order for Dragon to optimise BOG handling operation during
zero send-out times, it was crucial to find a system with a rapid
response time in combination with a high degree of plant
flexibility. The system supplied by Wrtsil, which is based on the
reversed Brayton cycle, is able to meet these strict requirements.
The main gas consumer for the Tornio LNG terminal is the
Outokumpu stainless steel factory, where there are major cost
and delivery consequences to the owner if there is an abruption
in the gas delivery. The LNG terminal availability requirement
was therefore set to 99.9% for the gas supply, which is extremely
high even for the LNG industry. By applying the Wrtsil
technology, the extreme availability requirement could be
fulfilled.
 combination

he combination of small to mid scale LNG floating

Bjrn Munko,
TGE Marine Gas T storage and regasification units (FSRUs) with floating
power barges provides flexible and quick access to
emerging energy markets. Many new, innovative solutions
for the integration and combination of FSRUs and floating
Engineering GmbH, gas-fired power plants are currently under development,
with special focus placed on the benefits of the possible
Germany, and integration and interfaces between the two units. Recently,
Poul Skjth, Burmeister TGE Marine Gas Engineering GmbH and Burmeister & Wain
Scandinavian Contractor A/S (BWSC) have been working on
& Wain Scandinavian joint developments in this field, and have concluded that
proper engineering will provide the basis for companies to
Contractor A/S, tap into new markets for LNG distribution.

Denmark, explain how Background and drivers

Significant new capacities of LNG supply came on stream
a combined FSRU and in 2016 and will continue to do so over the next few years
from new liquefaction plants in Australia and several
power barge solution floating LNG (FLNG) projects under construction. These new
capacities are leading to a saturation of existing offtaker
can help to access new markets, and even to a situation of oversupply and excess
capacities. In other words, many molecule owners in the LNG
LNG supply markets. sector are long on LNG, and are looking for new outlets.

105
 Under these market constraints, LNG providers are looking
into new markets, including the small to mid scale LNG supply
chains based on marine transportation. These supply chains
open up remote or underdeveloped markets with limited
access to gas, including islands, such as in the Caribbean or
Indonesia, or remote areas, such as West Africa or parts of
Central and South America.
While in the past there have been many bottlenecks, such
as the availability of LNG, or berthing slots at the production
facilities, the network of large FSRUs or receiving terminals,
which can be used for re-export or hub-and-spoke solutions,
is constantly increasing. This is especially the case for the
Caribbean and South American region, but also for the Asian
region. In some areas, investors are now even looking into
pure LNG storage facilities to kick-start and open up new
markets, as recently seen in the Caribbean.
Power barges are a proven concept to meet the energy
demands of emerging countries and regions in a prompt and
safe manner. In the past, there was seldom a concurrence
between the need for electricity and an existing or relatively
easy-to-implement gas grid or LNG infrastructure, causing oil
to be the fuel of choice.
As the fuel availability has now significantly swung
towards the direction of gas making gas to wire projects
using a floating infrastructure commercially viable this
needs to be supported by technical solutions. Furthermore, a
barge-based solution also ensures that there are not any
stranded assets when a power purchase agreement expires.
Figure 1. 130 000 MW power barge.
Figure 2. LNG barge with Type C tanks.
106 March 2017
Technical solutions
The basis for technical development are the existing
designs of FSRUs and power barges, as well as the current
developments in both technologies. The goal of the
development is to establish a design fit for purpose and
adapted to the project requirements and constraints. The
design choices include the different methods available for the
regasification of the LNG, such as ambient air vaporisers, open
and closed cycle seawater heated vaporisers and, in particular,
the possibility of integrating waste heat available from the
power barge. On the power barge side, the right sizing and
the pros and cons of four-stroke medium speed engines and
gas turbines have to be addressed.
One particular challenge during the design process is the
local conditions. These include environmental conditions, as
well as local regulations, and shape the design characteristic
between the two extremes of project specific or a fully
flexible and generic design. New regulations, such as the
IGF Code (but also the revised IGC Code), are now providing a
new framework as a basis for safe and reliable design.
TGE Marine Gas Engineering has been working on FSRU
designs since the turn of the millennium. After executing
several extensive front end engineering and design (FEED)
studies, including the engineering for environmental
permitting, the first units are now complete. The designs for
small to mid scale LNG FSRUs are based on Type C tanks.
These cylindrical or bilobe shaped pressure vessels are
designed to be inherently safe under the IGC Code. While
operated mostly at atmospheric pressure, the elevated design
pressure of typically 3 5 barg forms a back-up for
boil-off gas (BOG) handling, loading and idle time. As the
independent Type C tanks are fabricated and completed with
the insulation outside of the hull, the application of Type C
tanks keeps the challenges of tank fabrication away from the
building yard, which can then focus on the hull fabrication
and integration of the overall system. For liquefied gas carrier
projects, this has in the past been proven to increase the
number of possible building yards and to improve the
schedule and economics of the overall projects.
The power barge is equipped with multiple large bore
reciprocating engines operating in either pure gas mode, or as
dual-fuel systems with oil as a back-up fuel. If in periods the
gas supply is not available, the operation will automatically
switch to oil operation. This ensures high availability and high
efficiency from low loads up until the maximum capacity.
Furthermore reciprocating engine technology will not de-rate
until the ambient temperature reaches 39C or more. The
power barge is designed with a very low draft of less than
4 m and does not, therefore, demand valuable quay space. The
emissions are within World Bank 2008 Guidelines, but the
power barge may be equipped with abatement systems to
meet stricter emission limits.
As discussed in this article, both solutions are available
on an individual basis, but how will the combination of LNG
storage and regasification with the power production
influence the design? One major asset for this combination is
the availability of waste heat from the power barge, which
can be used as heat source for the regasification of the LNG.
The usual solutions are seawater heating or steam heating,
while ambient air heating has been considered for some
projects.
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 Constraints for seawater heating are mostly
environmental in nature. Given that, in most areas under
discussion, seawater is available at a sufficient temperature,
this seems viable, but it will be cooled down by 5 7C
during the process of vaporising the LNG, which may not be
acceptable due to the impact on the sea life. Furthermore,
the seawater pumps and possible additional pumps when
using an intermediate fluid have a negative impact on the
energy consumption and, therefore, efficiency of the plant.
In case the cool down of the seawater is not accepted,
steam heating may be an option. However, gas boilers are
the heat source for the steam, hence the consumption of the
boiler has be added to the overall energy balance.
For some projects especially those with smaller
send-out capacities ambient air vaporisers have been
considered. The ambient heat comes free of charge with the
application of ambient air vaporisers, or at a minor impact to
the energy balance when installing fans for forced draft air
vaporisers. However, the applicability is dependent on the
local conditions, as high air humidity may result in fog
formation, which has to be analysed on a project specific
basis.
The solution for the combination of the FSRU with the
power barge is the utilisation of waste heat from the
engines on the power barge for the vaporisation of LNG. This
Figure 3. Mid scale LNG floating storage and regasification
unit (FSRU).
Figure 4. Small scale LNG shipping.
108 March 2017
integrated approach reduces the overall impact of the
combined system. Intermediate fluids, such as thermal oil
and water/glycol mixtures, are used to exchange the heat
between the two systems. As the heat is available at a
higher temperature and does not have the same
constraints on the cool down of the fluid as seawater, the
mass flows are small, causing less energy consumption
in the overall system. In addition to the possible
downsizing of the pumps, the lower flowrates and higher
temperature lead to a reduction in line sizing and
footprint of the vaporisers. Today, the utilisation of waste
heat from engines or gen-sets is commonly chosen for
LNG fuel gas systems on merchant vessels. The
utilisation of waste heat drives the design for power
barge FSRUs in the direction of LNG fuel gas systems,
which are usually of smaller capacity, but provide good
references for the approach and as feed for technical
solutions.
In BOG management, the application of Type C tanks
provides a back-up for idle times due to the pressure
build-up capacity of the tanks. In case this is not deemed
sufficient, additional gas combustion units or a flare may
be installed. During normal operation of the power barge,
the BOG is actively handled by a BOG compressor. This
compressor elevates the pressure to the level required by
the engines, adding the BOG to the gaseous fuel supply
stream downstream of the vaporisers. Again, the concept
is being taken from LNG fuel gas system with four-stroke
engines or gen-sets. In the case of two-stroke engines
with high pressure demands (fuel gas supply pressure up
to 300 barg), the technical and commercial break-even
has to be evaluated between a recondenser system and a
high pressure BOG compressor.
Further considerations are given to the manning and
operation of the power barge and FSRU and, in particular,
the possible combinations. Considering the FSRU to be
the fuel gas system of the power barge, the same
approach can be taken as for LNG fuel gas systems now
installed on merchant vessels (i.e. remote operation of
the FSRU from the power barge).
Conclusion
The obvious synergies on the technical side (within the
thermodynamic processes and also within the operation)
of the power barge and the FSRU have been discussed
above. The technical synergies provide an excellent basis
and driver for commercial benefits of this combined
application.
Despite ongoing discussions on small scale chains,
the first small FSRU has yet to come into operation. The
market conditions are now favourable, as the feed source
LNG will be available in the coming years, and both
minor and large energy companies are pushing into
these new markets. An FSRU integrated with a
60 150 MW power barge provides a flexible and
movable asset to meet the needs for clean power supply.
FSRUs can be ideally combined with floating power
barges, providing significant benefits to the overall
installation.
 LNG Industry previews
a selection of companies that
will be exhibiting at this years
Gastech Conference & Exhibition
in Japan from 4 to 7 April.

2017 preview
ABB Stand 14-100
BB is developing solutions that help customers capitalise on the efficiency and performance
A improvements that digitalisation delivers today.
As a leading supplier of electrical propulsion systems for the global marine industry, ABB is
helping shipowners answer mounting pressures to increase fuel economy and reduce their fleets
environmental impact. ABBs family of Azipod thrusters has set the bar for reliable, efficient and
versatile vessel-propulsion solutions.
With integrated solutions, ABB has brought 650 ships around the world into a new era of digital
connectivity. By integrating sensors and software into a vessels critical equipment and control
systems, ABB can provide crew, owners and shore-side staff with a complete view of how their ship is
performing, and provide insights and support to increase efficiency and pre-empt operational issues.

109
 2017 PREVIEW
ABS Stand 14-120
BS offers solutions to the shipping industry for classification
A of liquefied gas carriers, with the largest share of the
newbuilding orderbook by gross tonnage. ABS classed the worlds
first LPG and LNG carriers and continues to support innovation
in all sizes and types of gas carriers, including classing the latest
cargo containment and propulsion systems.
ABS holds the largest orderbook of LNG-fuelled ships,
including the first ship in operation with dual-fuel slow speed
ME-GI engines and the first ship of this type built in China. In
addition, ABS classed the worlds first dual-fuel containerships
and the first US-built dual fuel OSVs.
The ABS Global Gas Solutions team is dedicated to
supporting client projects across gas shipping, gas as fuel,
LNG-ready vessels and LNG bunkering, floating storage and
regasification units (FSRUs) and floating LNG (FLNG).
AG&P Stand 2045
tlantic Gulf & Pacific Co. of Manila (AG&P) started 116 years
A ago as a traditional fabrication and heavy assembly yard
and successfully lead the modularisation of assets for the worlds
largest infrastructure projects. AG&Ps experience includes
delivering E-houses for the Ichthys LNG project in Darwin,
Australia; construction of the worlds first modularised complex
coker unit for BP Whiting Refinery in Indiana, US; and, more
recently, the first floating regasification unit (FRU) for the port at
Bali-Benoa, Indonesia. Recently, AG&P has been at the forefront of
pioneering small and mid scale LNG infrastructure solutions for
the rapidly growing gas sector.
At Gastech 2017, AG&P will be focusing on LNG import
terminals and the supply chains that emanate from them.
Building, funding and profitably operating LNG assets is the final
barrier to opening the LNG market to multiple players. To enable
customers to overcome this barrier, AG&Ps expanded offering
includes financing, commercially managing, and maintaining all
the integrated assets across the LNG supply chain. Providing
flexibility and economic value, AG&P acts as a nerve-centre for
LNG distribution.
Air Products is a leader in natural gas liquefaction
technology and equipment.
110 March 2017
Air Products Stand 12-085
ir Products is a world leader in natural gas
A liquefaction technology and equipment. The
companys experience extends from plants producing less
than 0.1 million tpy LNG to the largest baseload plants in
the world using the AP-X LNG process. The companys
MCR main cryogenic heat exchangers and natural gas
liquefaction processes are reliable, highly efficient and
operationally flexible. In addition, the companys AP-N
LNG process and equipment is used in the worlds first
offshore floating LNG facility. With over 45 years of LNG
experience, Air Products has built 116 LNG heat exchangers
for customers in 17 countries worldwide.
The company had fiscal 2015 sales of US$9.9 billion
and has a current market capitalisation of more than
US$30 billion. Approximately 17 000 employees in
50 countries strive to make Air Products a world leading
industrial gases company, providing sustainable offerings
and excellent service to all customers.
Aragon Stand 14-240
ragon will be in Hall 3 at Gastech to introduce the
A New Aragon the next generation of EPC company.
After a successful and eventful 2016, the future is
bright. The company has changed its name from
KANFA Aragon, and now has a new and stronger ownership
with a renewed focus as engineering partners of choice
and a leading FLNG, FSRU and LNG EPC company.
Having pioneered FLNG with the worlds first topsides
contract in 2008, Aragon has further built its capabilities
and experience and can celebrate 10 years of FLNG, FSRU
and LNG projects without a gap.
Aragon is proven to deliver solutions that are cost-
effective and economic for the modern oil and gas era.
Come and find out why the company is bucking the
downturn and how Aragon offer true added value to clients
across the LNG value chain.
Aspen Aerogels Stand 9385
he extreme temperatures involved in LNG production,
T transport, and storage require extreme thermal
insulation like Cryogel Z insulation. Cryogel is used
on piping and equipment at facilities around the world.
With the lowest k-value of any cryogenic insulation
material today, Cryogel offers an unmatched combination
of thermal efficiency and thinness, making it ideal for
space-constrained locations. The integral vapour barrier
provides multiple layers of defense against moisture
ingress, and its low-temperature flexibility means that
contraction joints are never required. Available in two sheet
thicknesses (5 and 10 mm), Cryogel can be easily shaped
to any surface, speeding installation time by as much as
40%. Protect your LNG assets with the superior thermal
performance of Cryogel Z.
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 2017 PREVIEW
Atlas Copco Gas and Process
Stand 13-260
tlas Copco is a world-leading provider of
A sustainable productivity solutions. Atlas Copco
Gas and Process division designs, develops, and
manufactures turbocompressors, positive displacement
compressors, and expansion turbines. In addition,
Gas and Process offers a matching range of aftermarket
products. The divisions solutions are used in oil and
gas and chemical/petrochemical processes, power
generation, renewables, and the industrial-gases sector.
Gas and Process is supported by a global network of
packaging and production facilities and service centres.
With more than five decades of experience in the LNG
market, Atlas Copco Gas and Process offers the inherent
mechanical simplicity of integral-gear technology in a
complete range of single and multi-stage compressors and
expanders. Among the highlights of Gastech 2017 are the
divisions solutions for natural gas processing plants, LNG
transport and processing, petrochemical, and natural gas
vehicle industry.
Azbil Stand 5175
ecently, emission regulations have been strengthened.
R As a result, LNG-fuelled gas engines have become
more attractive as they are modified to be low-emission
ship engines.
As natural gas specifications can fluctuate following
gas specifications, the combustion must be fine-tuned at
every new load, to prevent knocking in the engine. One of
the ways to do this is measuring the calorific value of the
natural gas. With the knowledge of the Wobbe Index or
the methane number, the gas-oxygen ratio can be set to
have the highest efficiency.
Azbil can assist in this matter with the use of its
compact calorimeter, GasCVD.
GasCVD can measure calorific value, Wobbe Index, or
methane number with compact size and attractive price, to
optimise and enhance the efficiency of NG fuel engine.
BASF Stand 12-170
A leading provider of sustainable solutions for natural
gas and LNG applications with a global footprint.
Under the OASE brand, BASF provides customised,
high performance gas treatment technologies for use in
traditional applications, such as syngas and ammonia,
sales gas and LNG facilities. The latest technology on
offer includes FLNG and mole sieve drying. In the field of
gas and fluid purification, separation and drying
processes, BASF is also offering a board range of superior
absorbent technologies, such as Sorbead, Alumino-Silica
Gels and Molecular Sieve Adsorbents. For the insulation of
carriers, storage, offshore pipe systems and pipelines,
BASF offers Elastopor, an insulation foam with
microcellular structure and thus outstanding insulation
properties.
112 March 2017
Bergen Pipe Supports Stand 5180
t Gastech 2017, the Bergen Pipe Supports Group will
A introduce its new cryogenic pipe support manufacturing
facility.
This facility is the third and final phase of a US$5 million
investment programme in the Indian business during
2016/2017 by owner Hill & Smith Holdings Plc and sees the
Bergen Pipe Supports Group as the largest pipe hanger and
restraint manufacturer located in the sub-continent.
In order to meet the demands of EPCs building LNG, LPG,
ethylene and other plants requiring both cryogenic and
conventional hangers at the most competitive prices, the
Bergen Pipe Supports Group undertook a substantial,
group-wide restructuring programme through 2016 resulting
in a more streamlined and strengthened business.
The combined facilities of Carpenter & Paterson Inc. in the
US, with Bergen Pipe Supports India enable the company to
deliver quality pre-insulated product to projects located
throughout the world.
BHS-Sonthofen Stand 9195
HS-Sonthofen has developed a new advanced
B double-stage process for eliminating divalent salts in the
MEG reclamation. As part of the gas processing to generate
LNG, the MEG (hydrate inhibitor) reclamation requires divalent
salt filtration, coming from upstream formation water. Classic
filtration technologies (cartridges, pre-coat filtration) suffer
from high OPEX together with loss of MEG. The new BHS
advanced double-stage process reduces the MEG loss to 1:30.
No filter aid and no throw-away cartridges are needed. By
using a first stage purification step, the majority of clear filtrate
is generated, plus a pre-concentrated sludge. The sludge is
used in a second stage for a cake building filtration, with cake
washing and drying to remove as much MEG as possible.
After that, the cake is almost MEG free and pre-dried for easy
disposal. Utility consumption is minimised and the complete
process is fully automatic with no manual interaction, therefore
safe and reliable.
Braemar Stand 16-140
raemar provides expert services to the shipping,
B marine, energy, offshore and insurance industries. With
approximately 1000 staff in over 70 locations around the
world, Braemar delivers global reach with local presence. From
its beginnings in shipbroking, Braemar has grown to become a
comprehensive international service provider. From ship design
and marine engineering, offshore, environmental and ports and
harbours consultancy, through incident response, equipment
damage surveys to chartering, shipbroking, logistics and port
agency services, Braemar provides an unparalleled breadth of
services for its clients.
For the LNG industry, Braemar provides design and
engineering services for LNG import and export terminals, LNG
peak shavers and small scale LNG facilities. Braemar is also
involved in LNG shipping, providing plan approval and on-site
construction and conversion supervision services for LNG
 2017 PREVIEW
Burckhardt
Compressions labyrinth-sealed
Laby compressor system .
carriers and LNG FSRUs. Experience from its involvement in LNG
shipping is now being applied to LNG as marine fuel and LNG
bunkering projects.
Burckhardt Compression Stand 7250
uring Gastech, Burckhardt Compression will be presenting
D its complete range of compressor solutions for LNG boil-off
gas (BOG) handling and fuel gas injection. The product portfolio
includes the full spectrum of marine certified solutions, from
small BOG handling volumes on LNG-powered merchant ships
to large BOG volumes on FSRUs, as well as LNG, LPG and LEG
carriers.
Burckhardt Compression offers competitive and highly
qualified compressor systems for fuel gas injection to marine
propulsion engines, including four-stroke, two-stroke (high and
low pressure), as well as COGES installations. In addition, the
portfolio contains different solutions for onshore BOG handling at
LPG, ethane, ethylene, propylene and ammonia storage tanks, as
well as LNG terminals, including pipeline booster compressors.
The oil-free, contactless labyrinth-sealed Laby compressor
system perfectly fits the demanding requirements and cryogenic
conditions of BOG handling, as it offers minimised compressor
wear and longest maintenance intervals. Besides the Laby
system, Burckhardt Compression offers a compact compressor
solution for small BOG volumes.
The companys highly competent team of application experts
is looking forward to meeting you at Gastech and helping you to
find the best solution for your application.
Bureau Veritas Stand 6080
ureau Veritas is one of the worlds leading classification
B societies and offshore safety and verification bodies. A diverse
network of 2600 experts is dedicated to ship and offshore safety
and efficiency. Bureau Veritas operates from 180 survey offices
spread in 90 countries and is classing more than 11 300 ships
totaling 111 million GRT.
Bureau Veritas will introduce during Gastech its
new-generation Asset Integrity Management System (AIMS). The
ultimate goal of AIMS is to provide holistic asset integrity support
covering six key parameters: safety, business, environment,
regulatory compliance, occupational health and operational
performance.
Powered by the proven 3DEXPERIENCE Dassault Systmes
platform, AIMS heart is a 3D digital twin of the asset, which can
be used as the single source for all analyses and inspection
activities.
It provides an interface for surveyors and a support to report
inspection and test data, or receive directly live data from
equipment sensors to provide a continually evolving model of the
asset.
Chart Stand 4025
hart is a recognised global brand for the design and
C manufacture of highly engineered products and solutions,
used from the beginning to the end in the LNG value chain,
facilitating the use of natural gas as a safe, economical,
clean-burning fuel alternative to diesel and other distillates, for
energy and in industry.
2016 included a number of LNG firsts and accomplishments
for Chart. The companys IPSMR liquefaction process was
granted patent approval; Chart brazed aluminium heat
exchangers became the first to produce LNG offshore; Indias first
LNG bus is equipped with Chart fuelling technology; and the
Dnsk Giants, the worlds largest cryogenic storage tanks, were
supplied throughout the year for a number of LNG projects. Power
generation, maritime and vehicle fuelling are particularly active
sectors and the company will be delighted to explain how it is
making a difference to the environment and reducing costs.
ClassNK Stand 14-160
lassNK is a ship classification society dedicated to safer,
C cleaner seas. With more than 240 million gross t, or
approximately 20% of the worlds merchant fleet on register,
ClassNK is one of the worlds largest classification societies.
It is also a leader in maritime related research and
development. Devoting significant resources and expertise to
R&D, the ClassNK works in close partnership with the industry to
develop a broad array of new cutting-edge technological
solutions aimed at securing a safer and greener future for the
maritime and offshore community as a whole.
Based in Japan, ClassNK is a global organisation committed to
providing the highest quality services, supporting clients 24/7
through a service network of 130 exclusive survey offices across
the globe.
Cryogenic Containment Stand 6170
urope Technologies is an industrial group, founded in 1998,
E with a large expertise on metal and composite materials, and
on associated manufacturing processes.
On the LNG market, Europe Technologies proposes two
separated activities. Under the brand Europe Technologies LNG,
the company is a market leader qualified LNG Cargo tank outfitter
for all membrane technologies. The team are regularly trained
and certified for worldwide interventions. As an additional service
March 2017 113
 2017 PREVIEW
the company provides customised spare parts for membrane
cargo tanks from manufacturing to quick supply of a full package.
The subsidiary Cryogenic Containment manages
LNG-as-a-fuel ships projects from end-customer needs definition
until the supply and installation of LNG containment systems
(such as Lattice LPV) and associated handling systems for
newbuild and retrofit ships.
Cryogenic Industries Stand 17-030
he Cryogenic Industries Group of companies, Cosmodyne,
T ACD and Cryoquip, are leading suppliers of engineered
equipment for todays natural gas and industrial gas markets.
The company is proud to be a participant in this years Gastech
Conference in Tokyo. Please stop by the booth for more
information on the companys vast product line that includes LNG
pumps, heat exchangers and plants.
ACD LLC is a leading manufacturer of a diverse line of
cryogenic pumps and turboexpanders for LNG applications for the
alternative fuels, industrial gas and oil industries.
Cosmodyne LLC is a leading provider of small to mid scale
natural gas (LNG) facilities for alternative fuels, peak shaving and
marine applications. All Cosmodyne plants are modular and
tailored to specific requirements.
Cryoquips expertise in engineering, manufacturing and
design solutions of a diversified line of cryogenic vaporising
systems and industrial gas equipment, has made it a leader in the
industry.
DNV GL Stand 13-125
t is DNV GLs ambition to support the whole LNG industry to
I become more energy efficient and environmental friendly,
as well as making all operations more cost-effective. A lot of
improvements have been achieved without jeopardising the
already unprecedented safety record of the maritime gas industry.
Over the last year, DNV GL has developed rules for LNG
bunkering vessels, supported yards and owners in developing new
concept designs for the carriage of LNG and LPG, launched new
rules for REGAS and supported owners in optimising their energy
consumption through the ground-breaking new tool named
COSSMOS.
With approximately 60% of the whole FSRU fleet to DNV GLs
class (in operation, contracted and under construction) and having
carried out all conversions so far, it goes without saying that the
company has been a partner in demand for almost all new
projects. Furthermore, DNV GL has supported various partners in
evaluating new concepts (such as new cargo containment
systems) by issuing Approval in Principle (AiP) to the more final
concept design evaluation, called General Approval of Ship
Application (GASA).
Dongsung FineTec Stand 15-120
ongsung FineTec is a top-tier insulation company providing
D services in hot, cryogenic, and acoustic insulation, especially
for LNG cargo containment systems, tank insulation for
LNG/LEG/LPG carriers and pipe and vessel insulation, LNG fuel
tanks, and total insulation for onshore/offshore projects.
114 March 2017
In 1996, Dongsung FineTec developed LNG carrier cryogenic
insulation, which is fit to world leading LNG carrier engineering
company, GTTs specification.
In addition to this, Dongsung FineTec is tested and approved
by KOGAS for KC-1 panels (174K LNG ship, BOR 0.12%). Through
global technological achievements and a relentless challenging
spirit, Dongsung FineTec is expected to be a global
eco-friendly company in its field.
Dow Chemical Stand 4034
T he Dow Chemical Company is a leading provider of chemistry
and technology to help remove contaminants from gas
streams. The companys global footprint allows engineers to
support plants designed in one geography and installed in
another. Dow Chemical has more technology options available to
meet the challenging needs for customers, including UCARSOL
amines, SELEXOL physical solvents, hybrid solvents, NORKOOL
dehydration fluids and coolants, DOWTHERM high temperature
and low temperature heat transfer fluids, and SulFerox iron
redox chelants. Dow is investing heavily in new technologies
to serve the needs for gas treating, including UCARSORB
adsorbents to remove C3+ hydrocarbons from gas streams, and
UCARSOL TGT, an amine-based solvent to achieve deeper levels
of H2S removal in a gas treating plant. Both of these products are
available for demonstration at operating facilities.
DUNA-Corradini Stand 13-140
UNA-Corradini has recently successfully completed the
D characterisation of polyurethane and polyisocyanurate
foams blown with the super environmentally friendly new class
of blowing agents named HFOs which are in full compliance with
both Montreal (Ozone Depleting Potential ODP = 0) and Kyoto
(Global Warming Potential GWP = 1) protocols.
Being in line with the most stringent regulations makes the
new range of products applicable worldwide without restrictions.
HFOs have been tested on the whole range of DUNA
products, including rigid foams and chemicals for in situ casting,
especially those proposed for the oil and gas market, the most
demanding in terms of thermal insulation performances. The
measured values are considered extremely promising by the
involved EPC contractors.
The first full scale productions will be carried out by
DUNA USA Inc. (DUNAs Texas-based daughter company), which
will deliver the new PU systems to cryogenic pipe supports
makers in the States where the demand for HFOs blown foams is
progressively rising in view of the phasing out of HFCs blowing
agents.
EBARA Stand 16-120
BARA International Corp., Cryodynamics Division (EIC Cryo) is
E the premier manufacturer of cryogenic pumps and expanders
for the diverse segments of the worldwide liquefied gas industry.
With over 40 years of continuous engineering innovation, EIC Cryo
machines incorporate the highest calibre of engineering and
technological advancement, delivering the most dependable and
efficient equipment you can buy.
W H E R E T H E C H I N E S E & I N T E R N AT I O N A L L N G I N D U S T RY M E E T
Produced By: From the Organisers of:

17 - 18 MAY 2017
SOFITEL WANDA HOTEL, BEIJING, CHINA

Distinguished Speakers Include:

Guoo Jiaofeng
G
Gu Jiaoffeng
Ji Li Y
Yalan
alan
l Yang
Y
Ya ng Guang
Guang Cuii Xi
C
Cu Xiaof
Xiaofei
feii Zhu
Zh
hu Xi
Xing
Xingshan
shan
h
Senior Researcher Chairperson of the Vice President Deputy General Manager Senior Director
Institute of Natural Resources Board of Directors Shenzhen Gas Group China Shipbuilding Planning Department
& Environmental Policy Beijing Gas Group Co., Ltd Trading Ltd CNPC
Development Research Regional Coordinator
Centre of the State Council of Asia & Asia Pacic
International Gas Union

Bernard
ernardd Samuels
Samuels Nigel
Ni
igell K
Kuzemko
uzemko
k Andrew
And
drew W
Walker
alk
lker Adnan
dnan Ezzarhouni
Ezzarhoun
h Guo Zhonghua
Zhonghua
Zh h
Head, Integrated Gas Commercial Chief Executive Ofcer VP Strategy General Manager President
Shell (China) Ltd Steelhead LNG Cheniere Marketing Ltd GTT China Shanxi Gas Design Institute

SUPPORTERS

SPONSORS
SILVER SPONSOR BRONZE SPONSORS

For more information please contact Elliott McGinn or Tyler Forbes on ChinaLNG@thecwcgroup.com or call +44 20 7978 0000

CHINALNGSUMMIT.COM #ChinaLNG
 2017 PREVIEW
Barcelona
Enags LNG Terminal.
Over the years, the company has expanded its traditional
product line into developing markets to support new
applications, such as fixed and mobile fuel stations,
small scale, various marine and floating projects, skids and
customised packaging solutions. In addition to a full line of
pumps and expanders for cryogenic fluids, EIC Cryo also offers
complete global service packages, including service
engineering and parts support, training, and customised
research. Staffed with qualified and devoted engineers and
support personnel, EIC Cryo is a proud example of
competitive, high-performance US manufacturing being put to
work serving customers around the world.
Emerson Automation Solutions
Stand 19-025
he latest technologies and solutions for achieving high
T profitability, reliable operations and environmental
compliance will be featured by Emerson Automation
Solutions at Gastech 2017 in Tokyo, Japan.
The company will showcase proven automation
technologies and services designed to reduce project
complexity and deliver the total solution to any
gas-processing application from bridging operations and
processing to transportation and distribution.
Certified solutions include integrated control and safety
systems, complete valve and actuation technologies,
radar-based custody transfer, and analytical flow
measurement systems, as well as wired and wireless
instrumentation for the most challenging applications.
In addition, conference attendees will have the
opportunity to learn about Emersons engineering project
teams. These teams help natural gas processors reduce
project risk, cost and schedule by providing expertise and
experience with complex engineering requirements, including
total system integration, installation, commissioning, and
global support for any type of gas-processing asset.
Enags Stand 7000
E nags, a Spanish midstream company with almost
50 years of experience and certified as independent
116 March 2017
European TSO (Transmission System Operator), is an international
standard bearer in the development and maintenance of natural
gas infrastructures and in the operation and management of gas
networks present in eight countries: Spain, Mexico, Chile, Peru,
Sweden, Greece, Albania and Italy.
Enagas is one of the companies with the largest number of
LNG regasification terminals in the world. The company has
developed the key infrastructures for the Spanish Gas System,
transforming it into a benchmark for security and diversification
of supply. In Spain, the company is the main carrier of natural gas,
with more than 12 000 km of pipelines and three underground
storage facilities. The company is also the technical system
manager. Furthermore, Enags is an indicator in sustainability,
good governance, knowledge and innovation in the sector.
Firewheel Stand 11-395
irewheel has been engaged in the heat insulation business
F for more than 25 years and has over 15 years of experience
in the international market. The company headquarters are
located in the bund area of Shanghai, acting as the exportation
and management centre of Firewheel. Both Firewheel plants are
ISO 9001:2008 certificated, each covering 40 000 m2 with over
200 workers.
Firewheel is one of the largest Chinese manufacturers of
high-temperature resistance textiles and fluid seals, specialising
in providing premium products and professional solutions and
services for thermal insulation and sealing applications. Firewheel
products include textiles of fibreglass, ceramic fibre, bio-soluble
fibre, basalt fibre and silica fibre, fibreglass composites (silicone/
vermiculite/PU/graphite/neoprene coated fibreglass fabrics) and
gland packings made of PTFE, graphite, aramid, etc. that are
widely used in shipping building, foundry, casting, aerospace,
automotive, marine, petrochemical, and construction industries.
Fives Stand 6130
ives, through its cryogenics/energy business line, is specialised
F in the design, manufacture, installation and maintenance of
brazed heat exchangers, cold boxes, cores-in-drums and cryogenic
pumps from its Cryomec range. Strengthened by over 50 years
of experience with the worlds largest engineering and gas
manufacturing groups, the groups cryogenics/energy business line
has built up a reputation for reliability and long-term relationship
with customers, by offering tailor-made solutions and beyond
delivery, with associated support and services.
Gastech 2017 will give Fives cryogenics/energy team the
opportunity to meet key actors of the Japanese market and
present especially its reciprocating and centrifugal Cryomec
pumps. These ultimate performance equipment are dedicated to
applications such as air separation, distribution, natural gas
processing, LNG, olefins and petrochemicals, helium and filling
systems, etc. Fives cryogenics/energy team would be pleased to
give you more details.
Freyssinet Stand 6180
reyssinet brings together a wide range of skills in the
F specialist engineering sector, offering integrated technical
solutions in the fields of construction and structural repair.
 2017 PREVIEW
In this respect, Freyssinet has been developing,
improving and implementing prestressing systems over the
last 40 years to cope with the highest levels of standards of
the LNG projects and more generally of the oil and gas
industry.
As a prime example of consolidated services, Freyssinet
provided and installed the rubber bearing pads for the
Tangshan (China) LNG tanks along with the overall
prestressing system (which was partially prefabricated
upfront).
Freyssinet was also deeply involved in the qualification
and implementation of the bonded prestressing system for
Adriatic LNG gravity-based structure (GBS), developing
specific grout formula and injection methodologies.
Freyssinet would not only be your privileged focal point
for supplying and installing structural reinforcement
(strands, anchors, bars) to any concrete-based LNG project,
but also your solution-oriented partner for any structure
bearing, handling, strengthening or repairing.
GTT Stand 6135 + 6150
TT is a French engineering company and designer of
G the first membrane cryogenic containment system.
Its technologies Mark and NO are used for the transport
and storage of liquefied gases, in particular LNG. For over
50 years, GTT has been sharing its expertise with the
maritime industry and the gas supply chain. The companys
technologies are continuously improved to meet shipowners and
shipyards requirements. Approved by international classification
societies, GTT solutions are available worldwide with a license
agreement. As an expert of integrated tank solutions, GTT advises
decision makers to optimise the cargo volume, reduce the vessel
construction and operation costs, and improve the vessel energy
efficiency and navigability. GTT will introduce at Gastech its new
technology specially developed for LPG applications, solutions for
LNG-fuelled ships and a full range of services.
High-Co International Stand 6395
renton offers a Wax-Tape brand anticorrosion wrap system,
T which uses a special blend of microcrystalline wax that is
thick with no fillers. It is a high-quality, easy-to-apply wrap used
to protect pipelines and irregularly shaped fittings aboveground
or underground without the use of mastics or fillers, and requires
minimal surface preparation.
The Trenton Wax-Tape no.2 is a self-firming anticorrosion
wrap that slowly firms up and offers much stronger mechanical
protection and long lasting protection against ultraviolet damage,
weathering, rock salt runoff. It is compatible with most other
coatings. The Trenton Wax-Tape no.1 anticorrosion wrap resists
corrosion on belowground pipelines, including wet and irregular
surfaces. It requires no waiting time or drying time, can be
backfilled immediately, and is compatible with cathodic
protection. The Trenton Wax-Tape HT-3000 is a high-temperature
May 1-4, 2017 | Long Beach, CA
LONG BEACH CONVENTION CENTER
March 2017 117
 2017 PREVIEW
Trenton offers Wax-Tape brand anticorrosion wrap systems.
anticorrosion wrap that will perform effectively at continuous
operating temperatures up to 110C.
HEROSE Stand 12-240
EROSE GmbH is a worldwide manufacturer of valves for
H cryogenic applications within the industrial gas and LNG
storage, distribution, plant and shipping sectors. Benefiting
from over 130 years of experience in the development and
manufacturing of valves, HEROSE strives to provide customers
with technical solutions that exceed industry standards.
HEROSEs comprehensive cryogenic product range includes
safety, globe, gate, check, control and emergency shutdown (ESD)
valves.
The companys range is enhanced by the recent introduction
of electrically actuated shut-off valves, in addition to the fire safe of experience in providing solutions for major engineering
certified cryogenic valves for LNG or similarly hazardous
applications. Today, HEROSE is at the leading edge of valves being
supplied for LNG ship fuelling installations, and is helping to
pioneer changes in the evolving cryogenic gas sector.
IHI Group Stand 5300
HI Group delivers value throughout all stages of the natural
I gas and LNG value chain, including production, liquefaction,
transportation, regasification and storage. IHI Group (including
JMU, IHI E&C and Felguera-IHI) has provided solutions for natural
gas and LNG projects around the globe. The companys strength
lies in its ability to execute the full EPC for projects anywhere in
the world with proven project management and effective quality
control.
For the last 40 years, IHI has been one of the most advanced
EPC contractors in the LNG industry, with extensive project
experience, including 39 LNG receiving terminals and 142 LNG
storage tanks. The company has also been a pioneer in LNG
carriers and SPB containment systems for floating LNG (FLNG)
facilities and carriers.
118 March 2017
Kanon Loading
Equipment Stand
16-350
articularly for ship-to-ship
P (STS) bunkering purposes,
Kanon Loading Equipment has
developed a new configuration
that is based on conventional
bunkering. This KANON concept
consists of a rigid part executed in
stainless steel piping with a hose
ending.
Whereas fully rigid loading
systems have strict limitations with
regard to the operational reach
and accessibility of
difficult-to-reach bunker flanges,
the KANON proposed configuration
provides the flexibility that is
required to connect to these
manifolds.
To make the conventional configuration suitable for LNG,
KANON made changes to the materials that are used, and
added an automatic emergency release system (ERS). The
company has developed a controlled ERS system especially for
this purpose, based on its decades of experience with marine
loading arms.
In that way, two well-known practices are merged into one
configuration which may look new in the market but it is
actually supported by many years of experience in the field.
Kingspan Insulation Stand 17-035
ingspan Industrial Insulation is proud to be exhibiting
K the Tarecpir Process Insulation System at Gastech 2017.
Tarecpir has been developed and optimised by over 40 years
companies, satisfying the strict requirements of petrochemical
and gas processing engineering specifications. High quality
thermal insulation is at the heart of the Tarecpir system, with
excellent thermal and fire performance combining to deliver
an insulation system that also offers the enhanced mechanical
strength and superior resistance to thermal stress required
of cryogenic applications. The Tarecpir system is further
enhanced by specially modified high density formulations that
can withstand the high compressive forces of load bearing
applications, for use as insulated pipe supports or insulated
tank bottoms. The manufacturing excellence, knowledge and
technical expertise of Kingspan Industrial Insulation have
proven to be an excellent solution time and again on major
projects across the globe.
Lattice Technology Stand 14-180
gainst the traditional wisdom of storage technology,
A Lattice Technology has successfully developed an
entirely new prismatic pressure vessel called a Lattice Pressure
Vessel (LPV) that can fit into any suitable space. The concept
 2017 PREVIEW
range of proprietary equipment with plate-fin heat
exchangers (PFHEs) and coil-wound heat exchangers
(CWHEs) that set the standards for engineering
excellence worldwide.

Lloyds Register Stand 13-025

loyds Register (LR), a leading class society for LNG
Land LPG carriers both by number of vessels and
tonnage is helping the industry to address challenges
across the entire gas supply chain and maximise
opportunities, such as the adoption and implementation
of high-risk and novel gas-as-fuel technology.
Kingspan Industrial Insulation is exhibiting the Tarecpir Process LR is recognised and respected by flag
Insulation System. administrations and port authorities worldwide, and the
companys extensive experience and technical
innovation in the gas industry extends beyond the
classification of gas carriers and gas-powered ships to
is fully scalable in all three spatial dimensions, allowing
encompass the entire supply chain. From production, liquefaction
the LPV to suit the given installation space for storage of
and transportation, to storage and distribution, LRs global
pressurised liquid, e.g. LNG and LPG. This technology provides
network of specialists are on-hand to support with technical,
a golden opportunity for fast and efficient implementation
safety, operational and commercial advice.
of LNG-fuelled shipping, small scale LNG supply chains,
Safety and risk management is at the heart of everything
shallow-water liquefied gas transportation, and floating LNG
done at LR. The company adopts a proven, pragmatic and
(FLNG) infrastructure, etc. The feasibility and flexibility of
risk-based approach, helping to achieve safe and efficient
this technology been successfully demonstrated by building
operation at every stage of an assets life.
and testing four prototype tanks and securing approval from
DNV GL, LR, ABS, BV, KR, and ClassNK, as well as ASME U2
stamp from ABS Consulting.
Marine Service Stand 14-295
urrent environmental restrictions in shipping are forcing
Linde Group Stand 12-160 C the shipping industry to investigate more environmentally
friendly energy systems on vessels. The cruise industry in
ore and more industries are exploring the benefits of particular is pioneering in the environmental field and therefore
M modularisation and as the Engineering Division of the
Linde Group will be showing at this years Gastech, the LNG
has a special focus on possibilities for emission reduction.
One possibility is the shift to LNG as a main fuel for power
plant engineering business is no exception. supply. To cover this need, Marine Service offers its customers the
A modular approach to plant engineering entails LNG fuel gas storage and supply. Therefore, Marine Service has
converting process steps into building blocks that always fit developed a complete LNG fuel gas system for conversions and
together, can be freely assembled to create the required new building vessels running on dual-fuel or pure gas engines.
combination and always produce a predictable, stable result. The fuel gas system is designed with full redundancy together
This not only maximises cost efficiencies and quality, it also with two or three separated storage tanks, bunker stations at each
reduces risk, complexity and on-site installation effort thanks side of the vessel for sequential or simultaneous filling of all
to off-site fabrication, pre-assembly and pre-testing. tanks and two or more submerged LNG pumps and a boil-off gas
Modularisation continues to benefit operators once the (BOG) compressor for a continuous fuel gas supply.
system has gone on stream. Proven designs improve
operational efficiency and individual modules can be easily MIB Italiana Stand 17-320
and cost-effectively replaced or updated.
IB Italiana S.P.A. is a leader in the supply of emergency
A leading player in the LNG field, Linde will be taking
its Gastech visitors on an exciting journey to the world of M release systems and customised connectors for the oil
and gas industry and, since the early 1970s, specifically for the
modularisation. Guests to the stand will see how the
company is bringing the vast experience it has gained liquefied gas industry.
building world scale LNG plants to the small and mid scale MIB is playing an active role within the industry to:
segment with its modular, ready-to-run production strategy. standardise technically the offshore LNG transfer solutions,
Visitors will even have an opportunity to take a virtual maintain the unrivalled high level of safety and reliability of the
reality tour of a LNG plant. Guests can also learn how Linde LNG transfer industry achieved so far and, at same time, increase
is increasing the efficiency and flexibility of nitrogen performance during transfer.
capture through a variety of configurations scaling from Until now, MIB has been involved in several FSRU/FSU
single to double columns all tailored to the composition projects by proving a complete package ship-to-ship (STS)
of the natural gas. To round this out, the company will be transfer solution based on cryogenic flexible hoses. Thanks to the
presenting its extensive service offering and showcasing its long-lasting experience gained in the offshore high pressure

March 2017 119

 2017 PREVIEW
transfer systems, MIB has recently developed an integrated
system to safely deliver high pressure natural gas from the
FSRU to shore via flexible jumpers.
MIB has also been involved, since the early stages, with a
number of LNG bunkering vessels projects, with the aim of
developing a reliable, operations-effective and vessel-integrated
solution based on a hydraulically actuated full-bore ERS as a
safety device for the STS transfer.
MODEC Stand 8230
ODEC Inc., a listed company that is headquartered in
M Japan, is an owner/operator and EPCI general contractor of
floating production systems, including FPSOs, FSOs, FLNG units,
TLPs and semi-submersibles. Over the last 12 months, MODEC
developed the FSRWPTM (Floating Storage Regasification
Water-Desalination & Power-Generation) solution utilising its
accumulated operational and design experience in floating
production systems. In addition, MODEC developed associated
systems for power only (FSRwP) and water only (FSRWTM).
All power and water solutions make use of the increasingly
available LNG as a fuel source to bring clean power and water
either on an IPP, EPCI, BOO or BOOT basis within 24 months of
contract award to any shore.
A MODEC group company, SOFEC Inc. of the US, is an
industry leader in the supply of marine terminals for crude oil
and product import/export, as well as permanent and
disconnectable mooring systems, such as turrets, spread and
tower yoke moorings for tanker-based floating production
systems, i.e. FPSOs, FSOs, FSRUs, FLNG units, FSRWPTM, FSRwP,
and FSRWTM systems. Suitable mooring systems are available
for a large range of water depths and environmental conditions.
PJOE Stand 13-315
P JOE is a China-based fabricator for the international
upstream industry for oil and gas, renewables, waste
management, gas monetisation, energy, petrochemical, water
and mining industries.
PJOE has completed projects around the world and has end
clients that are 90% from overseas.
Reflex Marines FROG-XT transfer system.
120 March 2017
Projects including detailed design, production engineering,
procurement, fabrication and pre-commissioning are being
executed.
PJOE has successfully contributed to LNG projects, such as
Yamal, Petronas FLNG 1 and 2, Golar Hilli, Wheatstone and
Lampung. PJOE have been entrusted projects up to 145 000 t in a
single award. Vast facilities are available within a single location
to execute the project and accommodate all project requirements.
PJOE operates within an increasing local supply chain, an
export orientated custom environment and a unique, perfect
infrastructure.
PJOE is a leading fabricator for multi-discipline projects of
every sizes and value.
PetroSkills Stand 11-365
etroSkills/John M Campbell is the leading learning
P and development provider in the oil and gas industry.
The PetroSkills Alliance, comprised of operators, service
companies, and academic organisations, directs and maintains
detailed competency maps to guide each technical discipline,
ensuring PetroSkills content links to real world skills. In
addition to the industry-standard Campbell Gas Course (G-4),
PetroSkills/John M Campbell provides training and learning
solutions that span the value chain.
At Gastech, PetroSkills will be on hand to help develop
competencies at all levels of the industry, whether through
world-class training courses, competency development systems, or
the companys new virtually-delivered, blended course model,
PetroAcademy, which allows participants to get the training
needed from anywhere in the world.
Reflex Marine Stand 13-070
his year, Reflex Marine will be showcasing world-leading
T personnel transfer carriers. Having driven safety
improvements in the offshore and marine industries for over
15 years, the company is excited to present the carriers to the
LNG market.
WAVE-4, the latest innovation, offers safe and efficient
transfers for standing passengers. A carrier from the FROG-XT
range will also be exhibited, with a range of capacities and
extensive passenger protection FROG-XT offers a flexible solution
for operators in all offshore conditions.
Attendees are invited to the stand to experience the carriers
for themselves.
Reflex Marine is a personnel access solution provider serving
the maritime, wind energy and traditional offshore energy
industries. The company is dedicated to providing safe methods of
personnel transfer, managing risks and improving safety
standards.
RINA Stand 5170
INA has the experience, technology and know-how that will
R ensure that LNG becomes a preferred cleaner fuel for cruise
vessels worldwide. Its Gas Centre of Excellence gathers expertise
from across the group. As a virtual centre, RINA has the flexibility
to deliver services globally, helping the industry address the
particular needs of utilising gas as a green fuel source.
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 2017 PREVIEW
The OLT Offshore LNG Toscana project.
RINA Services has successfully updated the technology
qualifications for side-by-side mooring systems and loading arms,
increasing their envelopes and therefore ability to function in
open water conditions. Both are a part of the OLT Offshore LNG
Toscana.
The OLT Offshore LNG Toscana project consisted of the
conversion of an LNG carrier (Golar Frost) into a floating
regasification terminal which converts the natural gas from LNG
into gaseous state.
Do not miss this opportunity to meet and greet the companys
gas experts from the RINA Group.
Russian Maritime Register of Shipping
Stand 18-120
rctic technology is acknowledged to be a primary focus area
A in the Russian Maritime Register of Shipping (RS) activities.
The company has been classifying a great number of ice class
ships since the 1960s, having a solid background and regulatory
framework in place. RS profile shows 75% of recent newbuilds to
be of ice class, including 13 designated icebreakers and 50 Arctic
class vessels. RS ice class is well applicable to a wide range of
ship types and functions: from offshore support vessels to large
gas carriers, oil tankers, etc.
The carriage of LNG by sea is one of the promising segment
of shipping development in the freezing seas. RS is honoured to
be a part of the extraordinary newbulds, such as a series of Arctic
LNG carriers of 172 000 m3 in capacity and the Arc4 ice class
FSRU, both being the first in the world.
Saipem Stand 14-050
S aipem is a leading oil and gas services provider that is
active in the whole LNG chain and is capable of delivering
large, complex turnkey projects in the high-tech LNG market.
The company has designed and constructed, as EPC contractor,
upstream facilities, gas pipelines, liquefaction plants, storage
and loading facilities, and LNG transportation and regasification
terminals. In total, Saipem has delivered an installed liquefaction
capacity of 40 million tpy and 45 million tpy installed
regasification capacity. With access to and deep knowledge of
liquefaction, and regasification technologies and state-of-the-art
122 March 2017
storage tanks, Saipem offers all-around solutions to a multitude
of international clients. Be it liquefaction or LNG regasification,
onshore, floating or on a gravity-based structure (GBS), Saipem
provides effectively designed and safely executed operations to
enhance production, storage and transportation.
SCHOTT Stand 7315
y choosing equipment with explosion-proof certified
B Eternaloc terminal headers, you can have peace of mind
and rely on the safest, most proven electrical feedthroughs
available on the market. With more than 30 years of
maintenance-free performance in over 6000 LNG applications,
terminal headers from SCHOTT have proven to perform reliably
under the toughest conditions. These safety relevant components
serve as gas-tight isolation elements that help to uphold pressure
vessel integrity while enabling the supply of power and data to
cryogenic submerged pumps, turbine expanders and compressors.
At Gastech, SCHOTT will present its custom-made single and
double-sealed Eternaloc feedthroughs for LNG terminals,
carriers and floaters. Thanks to a strong engineering foundation,
SCHOTT can also offer standardised terminal headers to suit
small scale applications. The companys established
manufacturing processes enable flexible production capabilities
that can be adjusted to meet growing future demands with high
volumes.
Shell Stand 9040
as-to-liquids (GTL) creates an additional route to monetise
G natural gas by turning it into high quality liquid fuels and
specialty products. Natural gas resource holders are able to
access the global oil products market and diversify risk. A GTL
facility creates opportunities for local employment and enhances
domestic gas markets.
GTL products are colourless, odourless and have low levels of
impurities, such as sulfur, aromatics and nitrogen. These
characteristics help address specific challenges. For example, GTL
gasoil is virtually free of impurities and benefits local air quality.
GTL products can be used through the same logistics channels
and infrastructure as oil derived products, minimising the need for
additional investments.
Shell is a world leader in GTL and has been pushing the
boundaries of technology and innovation for more than 40 years.
Shell operates GTL plants in Malaysia and Qatar and is uniquely
placed to unlock the value of natural gas.
Siemens Stand 17-120
iemens is a global player within the oil and gas industry.
S With the acquisitions of Dresser-Rand and Rolls-Royce
Energys gas turbine product line, Siemens expanded its product
and services portfolio.
The Siemens design for LNG projects secures the best total
cost of ownership and maximises uptime to keep production
flowing. LNG customers can select applications for industrial or
aeroderivative gas turbine-driven compression, or all electric LNG
and gas-to-power applications in remote areas. The compact
design and high efficiency of the Industrial Trent 60
aeroderivative gas turbine is the ideal drive system for larger-size
 2017 PREVIEW
LNG plants, while the SGT-750 industrial gas turbine is ideal for
small to medium-size plants. Innovations in compression
technology, rotor dynamics, and head capacity provide
incremental production gains that are important to onshore and
offshore LNG operators. This helps reduce operating costs over
the lifecycle of the equipment. With the largest service network,
Siemens can help maximise uptime and operational reliability.
SIGTTO Stand 13-395
he Society of International Gas Tanker and Terminal Operators
T (SIGTTO) was formed in 1979 as an international organisation
through which all industry participants might share experiences,
address common problems and derive agreed criteria for best
practices and acceptable standards. Visit SIGTTOs stand where the
companys publishers, Witherby Publishing Group, are displaying
the societys latest guidance.
Smit Lamnalco Stand 15-220
mit Lamnalco is a leading provider of safe, reliable and
S cost-effective integrated midstream marine services
supplying tugs and purpose-built support vessels to the following
on and offshore terminals:
z Oil and LPG.
z LNG and FSRU.
z SPM.
z Floating production (FLNG, F(P)SO).
z Port.
z Mining.
The company owns, operates and manages a modern diverse
fleet of approximately 225 vessels and has close to
3000 staff worldwide. Smit Lamnalco is dedicated to providing
services tailored to the operational needs of global customers in
local markets and in challenging environments. The company
provides vessels and related support services in almost
30 countries to leading IOCs, major NOCs and other respected
clients.
SNRI Stand 19-080
NRI has received 5 million of orders for LNG tankers and
S FSRUs.
SNRI, member of Valco Group, has reinforced its leading
position in cryogenic valves with the confirmation of purchase
orders for 14 vessels recently granted by DSME and HHI. The
purchase orders confirm the right choice of SNRI to fulfill needs
of the complete LNG chain on the marine side by proposing low
pressure valves and also class 2500 cryogenic valves from 1 in.
(for MEGI gas supply) up to 16 in. for FSRU regas systems. This
unique large range provided is the result of a long investment by
SNRI on the supply chain, including a bunker for pneumatic and
cryogenic testing and larger CNC machines.
Spencer Insulation Stand 9390
pencer Insulation was incorporated in Houston, Texas in
S 1998 with the specific purpose of representing major
manufacturers with their specifications at major owners
and engineering houses around the world. From 1998 to
the present day the company represent more than 20 key
manufacturers and their products from the world of industrial
and commercial insulation. Spencer Insulations experienced
material specialists are able to offer independent and impartial
advice on products and application solutions to design and
specification engineers as well as specialist contractors.
Worldwide sourcing of materials along with
Spencer Insulations preferred status with many international
manufacturers, enables the company to procure competitively
and speedily in order meet the project requirements
irrespective of geographical location.
Spencer Insulation has substantial knowledge and
experience of distributing products worldwide and is able to
manage effectively and efficiently, all customer requirements.
Spencer Insulation is a trusted partner in the world of industrial
and commercial insulation.
TechnipFMC 5060
echnipFMC is a global leader in oil and gas projects,
T technologies, systems and services.
The companys extensive gas industry experience helps
support the companys clients capital projects from concept to
delivery and beyond:
z LNG the company has built approximately one-third
of the worlds LNG capacity through projects in the
Middle East and Africa. With the companys partners,
TechnipFMC is currently the main contractor on Yamal LNG.
z Floating LNG (FLNG) TechnipFMCs uniquely broad skill
set makes the company a leading engineering contractor in
FLNG (Shell Prelude and Petronas Satu).
z Gas-to-liquids (GTL) the Oryx plant built for QP/Sasol
has the highest reactor capacity to-date. TechnipFMCs
alliance with Sasol includes FEED for future projects and
co-development of the companys FT reactor technology.
z Natural gas liquid (NGL) recovery TechnipFMC have
delivered plants for the recovery of NGLs and offer the
Cryomax suite for NGL extraction processes.
Tellurian Stand 5020
ellurian Investments was founded as a private
T company on 23 February 2016 by Charif Souki and
Martin Houston. On 10 February 2017, it merged with
Magellan Petroleum and became a public company known
as Tellurian Inc., and listed on the Nasdaq under the symbol
TELL.
Tellurian is led by President and CEO Meg Gentle. The
employees and contractors of Tellurian are experienced
industry experts developing low-cost LNG projects along
the US Gulf Coast. The team will deliver results using a
repeatable and simple design, off-the-shelf equipment and
multiple production units to enhance reliability. The team
has delivered cost-leading LNG projects over more than
50 years. They focus that collective knowledge and
expertise on establishing a new global standard and intend
March 2017 123
 2017 PREVIEW
to deliver low cost LNG to customers from Driftwood LNG, a
26 million tpy LNG export facility expected to become
operational in 2022.
TGE Marine Stand 9220
GE Marine Gas Engineering GmbH (TGE Marine) is a market
T leading engineering contractor for the design and supply
of gas handling systems for gas carriers, offshore units and
LNG fuel gas systems. The company delivers turnkey solutions
on an engineering, procurement and construction supervision
(EPCS) basis for storage and handling of cryogenic gases (LNG,
LPG, ethylene, ammonia) on board gas carriers, floating units
(e.g. FSRUs) and merchant ships operating with LNG as fuel.
TGE Marine specialises in the containment system and processing
of liquefied gases and is a market leader in the ethylene and
small LNG carrier segment.
TGE Marine is in a unique position as the sole supplier for the
gas handling systems of all three LNG bunker vessel newbuildings
arriving in European waters during the first half of 2017. Another
ground breaking design is the LNG fuel gas system for the largest
ever offshore crane vessel to be delivered to the yard in 2017.
Total Stand 11-120
otal decided to have a strong presence at Gastech 2017.
T Celebrating the 60th anniversary of the companys Japanese
affiliate, Totals presence will be spearheaded by the company
CEO Patrick Pouyann, who will be joining a conference panel
debate on day one. Gas and LNG are at the centre of the
Groups strategy to become a responsible energy major. Most
recently, Total has been selected by the authorities of the
Ivory Coast to build and operate a 3 million tpy floating storage
and regasification unit (FSRU), the first in the country.
Visitors to Totals stand at Gastech will be able to discover
more about this project and other company developments in gas
and renewables.
Toyo Engineering Corp. Stand 15-130
oyo is a global engineering contractor. The companys service
T covers upstream oil and gas development to downstream
plant construction.
TGE Marine LNG bunker vessel.
124 March 2017
At the Toyo stand at Gastech 2017, the company will introduce
its gas monetisation solution services and technologies, such as
gas field E&P consulting, EPC services for mid scale/floating LNG
facilities and COREFLUX-LNG technology an efficient LNG
processing technology to recover ethane and LPG from LNG.
Also, TOYO will introduce its comprehensive services for
subsea oil and gas development, collaboration with world leading
oil field product and service company and subsea production
system provider.
TOYO is confident in providing quality services which satisfy
the clients needs with up-to-date technology innovations.
Trelleborg Marine Systems
Stand 16-320
relleborgs marine systems operation will be exhibiting at
T Gastech 2017. The company will be discussing Trelleborgs
SmartPort, its collection of data powered marine technology
product applications. SmartPort supports ports and terminals in
their drive towards the Port of the Future vision, and importantly,
the data capture and analysis that will enable it.
At Gastech, Andrew Stafford, Technical Director for Trelleborgs
marine systems operation in the UK, will discuss the management
of FSRU operations, ship-to-shore interfaces for gas output, and
interfaces between LNG carriers and FSRUs for liquid transfer.
Supplied worldwide to hundreds of LNG terminals and LNG
carriers in service, Trelleborgs SeaTechnik SMART Ship-Shore
Link (SSL) system is just one product that sits within the Trelleborg
SmartPort portfolio. It is part of the emergency shutdown and
safety chain across this interface, carrying communications and
data between ship and shore or between floating assets.
Velocys Stand 13-345
elocys is a company at the forefront of smaller scale
V gas-to-liquids (GTL), providing the bridge connecting
stranded and low value feedstocks, such as natural gas, landfill gas
or biomass, with markets for premium products, such as renewable
diesel, jet fuel and waxes. Its commercial reference plant, which is
located adjacent to Waste Managements East Oak landfill site in
Oklahoma City, is currently being commissioned.
With its partners, Velocys aims to deliver the most
economically compelling conversion solution a fully integrated
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news, analysis
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 2017 PREVIEW
offer that can be deployed at scale into the growing, Winterthur Gas & Diesel Stand 16-160
attractive markets on which it focuses. Velocys technology,
protected by several hundred patents in over 30 countries, is inGD low pressure X-DF technology is based on the
specifically designed for smaller scales, combining super-
active catalysts with intensified reactor systems. Standardised
W lean-burn principle (Otto cycle), in which fuel and air are
premixed and burned at a relatively high air-to-fuel ratio. Such a
modular plants can be deployed readily in a wide range of concept provides the following benefits:
locations, and Velocys capabilities and extensive experience z Low pressure gas supply means low investment costs and low
deliver a proven route to operation. power consumption.
z Pilot fuel quantity below 1% of total heat release.
Wrtsil Stand 16-080
z DF engine can be operated on gas from idle.
rtsil is a market leader in gas and multi-fuel
W engines, and related fuel systems. The company
has developed the technology and services; accumulated
z Low NOx emissions, IMO Tier III compliant in Emission Control
Areas (ECAs) without after-treatment.

expertise and experience, and covered the entire gas value
chain from exploration to end consumers with an
unmatched offering for a host of LNG applications.
This is why Wrtsil is excited to be once again
participating at Gastech. The company will host daily
networking sessions and where you will find the companys
#GasBassadors on hand to answer all your questions about
gas and LNG. Wrtsil will also be presenting important
papers during the main conference and on the exhibition
floor during the event.
Build the future,
z Particulate matter emissions reduced to almost zero.
X-DF technology is applicable on a variety of vessel types, such
as LNG carriers, chemical tankers and containerships, and holds
excellent potential for vessels operating in ECAs (Baltic, coasts of
North America, Gulf of Mexico). In the marine business, the low
pressure X-DF solution is an increasingly attractive alternative for
companies looking for environmentally friendly propulsion
solutions.
Woodside Stand 8070
oodside is a leading supplier of affordable and sustainable
W energy in Australia and globally.
The company is Australias most experienced LNG operator,
with a reputation for reliability, efficiency and operational
excellence.
Woodsides producing assets in Australia include the landmark
North West Shelf Project, which has been operating since 1984. In
2012, the company commenced production from the Pluto LNG

prepare for LNG plant and expects to add additional volumes from the
non-operated Wheatstone LNG interests in mid-2017.
Woodside has significant equity interests in high-quality
development opportunities in Australia, Canada and Myanmar, and
operates a fleet of floating production, storage and offloading
(FPSO) vessels.
The companys global exploration portfolio includes emerging
and frontier provinces in Australia and the Asia-Pacific region, the
Atlantic Margins, Sub-Saharan Africa and Latin America.
The company continues to expand its capabilities in
marketing, trading and shipping and has enduring relationships
that span more than 25 years with foundation customers
throughout the Asia-Pacific.
Manufacturing safe and
innovative quality products CryoMac3 LNG
Yokogawa Stand 5040
Fueling Nozzle
okogawa has what it takes to achieve operational excellence
Breakaway
Coupling Receptacle
Quick
Y in every part of the oil and gas business, from offshore and
onshore facilities to pipelines, terminals, and deepwater operations.
Disconnect
Vent-Fill Particularly in the LNG sector, Yokogawas reputation in this field is
Cryogenic Coupler
Fueling Hose well established with an LNG project track record that goes back
more than 40 years.
Your LNG partner: At Gastech 2017, Yokogawa will demonstrate its extensive
expertise and capabilities in project implementation and
REGO GmbH Industriestr. 9 integrated solutions.
Distribution Center 35075 Gladenbach
Europe Germany
Phone +49 (0)6462-9147-0
126 March 2017
www.rego-europe.de
ADINDEX
Advertiser Page Advertiser Page

ACT Expo 117 Lydall 79

Air Liquide 41 MAN Diesel & Turbo 33

Braemar Engineering 59 Matrix Service Company 55

Burckhardt Compression 45 MIB International IBC

CB&I 07 Neuman & Esser 65

Chart Industries 09 Nikkiso Cryo 71

Cheniere OFC & 35 Orbital OBC

ConocoPhillips 11 Pittsburgh Corning 27

Corban Energy Group 17 Rego Europe 126

Cosmodyne, A Cryogenic Industries Company 15 Saipem 63

CWC China 115 Selective Adsorption Associates 66

Entrepose 04 Siemens 93

Fives 47 SNC Lavalin IFC

Gas and Heat 99 Temati 75

GE Oil & Gas 23 Vanzetti 83

69, 72, 107,

LNG Industry Watlow 97
111, 121 & 125

International Registries 89 Winterthur Gas & Diesel 21

Koch Glitsch 85 Yokogawa 02

LNG Industry is audited by the Audit Bureau of Circulations (ABC).

www.lngindustry.com An audit certificate is available on request from our sales department.

March 2017 127

 ...ON
15FACTS Japan
Japan has The Japanese
around word for Japan Japan has over
6852 is Nihon or 100 active VOLCANOES
islands Nippon, meaning
sun origin
Japan received its rst
ever LNG cargo from the
lower 48 US states
Japan has a
in December 2016
population of around
127 million people
Japan is
The oldest company in the Japan rst received the worlds
world operated in Japan LNG produced in the
from 578 AD to 2006
largest
US from the Kenai
LNG plant in Alaska
importer
in the late 1960s of LNG
Samurai
actually
visited Tokyo has
New York the worlds
largest sh
in 1860 market

Moodys expects Japanese LNG

imports to fall to approximately
80 million tpy by 2020 The
Ichthys
Karaoke roughly LNG
translates to project
TOKYO has
empty orchestra SQUARE
is led by watermelons
more Michelin
in English
Japans can be
stars than
INPEX purchased in anywhere else
Japan in the world
128 March 2017
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