Gas and LNG Storage The Future of Modular LNG Tanks - Arup

Page created by Michelle Allen
 
CONTINUE READING
Gas and LNG Storage The Future of Modular LNG Tanks - Arup
Gas and
LNG Storage
The Future of Modular LNG Tanks
Gas and LNG Storage The Future of Modular LNG Tanks - Arup
Gas and LNG Storage | The Future of Modular LNG Tanks

1. Introduction

1.1 LNG and LNG to Power                                        But the LNG market is changing, oil prices are lower, LNG
                                                                 prices are being driven down, even renegotiated, and buyers
     Market Overview                                             are seeking shorter term, more flexible contracts. Despite
                                                                 these challenges there was 890 MMTPA of proposed new
The LNG supply market has doubled in the last decade to          liquefaction capacity in January 2016, key regions being
301.5 MMPTA [1], and it is anticipated that the next decade      US, Canada, East Africa and FLNG. Clearly many of
will see further growth, particularly in the USA, Canada,        these projects will not proceed as they compete for supply
East Africa and FLNG, increasing by 46% to 443 MMTPA             contracts, but this should encourage demand side expansion.
by 2021 based on projects currently under construction. This
expansion is associated with very high and increasing LNG        A number of factors will drive demand side expansion
liquefaction costs. For those terminals coming on line by        including conversion to cleaner cheaper fuels for power
2021 the estimated CAPEX is over $1,500/tonne. Efforts           generation, to either reduce particulate pollution from coal
to lower the unit costs of liquefaction has seen a move          fired power stations or convert from fuel oil. In addition,
away from very large scale, bespoke trains to a modular,         those countries that seek to honor their COP21 commitments
multi-train approach, based on smaller, midscale 0.5 to 1.0      are likely to see natural gas and liquefied natural gas (LNG)
MMTPA trains, such as Energy World’s proposed plant in           as an essential transition fuel to a lower carbon future.
Sengkang, Indonesia.                                             For those countries with an established gas distribution
At the beginning of 2016 regasification capacity, or potential   network, large scale regasification terminals, in excess of
demand, was 757 MMTPA, including just over 10% FSRU              1.0 bcfd are appropriate, whereas archipelagoes such as the
capacity, but from 2000 to 2015 utilization has remained         Caribbean [4], Indonesia and the Philippines need to consider
between 30% to 40%. With capacity only expected to expand        a hub and spoke solution in which large scale LNG imports
to 810 MMTPA by 2021, utilization would need to increase         (7.0 MMTPA) can be distributed by smaller LNG carriers
to 44% to meet the estimated increase in demand. Clearly         (30,000m3) directly to the power station.
there has not been a lack of regasification capacity for the
LNG supply, but some analysts have predicted an oversupply         Some
                                                                 Some      companies
                                                                        companies         areconsidering
                                                                                     are now   now considering        vertical in
                                                                                                            vertical integration
of LNG [3].                                                      which  they provide
                                                                   integration          both supply
                                                                                  in which           of LNG asboth
                                                                                              they provide       well supply
                                                                                                                       as demand
Global trade was 245 MMTPA in 2015. The average yearly           inof
                                                                    terms
                                                                      LNG as well as demand in terms of LNG toof
                                                                           of LNG   to  Power.  According  to Anatol   Feygin
growth of LNG demand since 2000 has been 6.6% pa. If             Cheniere “that will be the major growth for LNG demand
                                                                   Power. According to Anatol Feygin of Cheniere
                                                                 going forward” and is a model it is looking to replicated
this continues, demand would reach 358 MMTPA by 2021,
                                                                   “that will
                                                                 globally       be theLNG
                                                                           [3]. Lower    major    growth
                                                                                              prices       formaking
                                                                                                     are also   LNG the fuel
which would represent a utilization of 80% on the planned
liquefaction capacity by 2021, without allowing for capacity       demand
                                                                 more         going
                                                                       attractive.     forward”
                                                                                   However,         and is
                                                                                               for those    a model
                                                                                                         countries  thatitdo
                                                                                                                           isnot
taken offline. Some recent reports [2] have suggested the so     have
                                                                   looking to replicated globally [3]. Lower LNGcosts
                                                                       an established   gas distribution network   the capital
called glut in LNG has not materialized, and the numbers         ofprices
                                                                    receiving,
                                                                            are storing  and regasification
                                                                                also making                 at eachattractive.
                                                                                                  the fuel more      power station
above could lend support to that view.                           can inhibit the development of LNG to power projects.
                                                                  However, for those countries that do not
                                                                  have an established gas distribution network
                                                                  the capital costs of receiving, storing and
                                                                  regasification at each power station can inhibit
                                                                  the development of LNG to power projects.
Gas and LNG Storage The Future of Modular LNG Tanks - Arup
Gas and LNG Storage | The Future of Modular LNG Tanks

          Offtaker                        Power Station Capacity(MW)                             Storage Tank Capacity (m3)
                               2018 (Conv)        2032 (New)           Total           By 2018            By 2023              Total
 The Bahamas, BEC (NP)             393                320               713            70,000             90,000              160,000
 The Bahamas, GBPC                 240                 0                240            20,000             20,000              40,000
 Barbados, BL&P                     60                245               305            35,000             45,000              80,000
 Belize, BEL                        62                40                102             5,000             15,000              20,000
 Dominican Republic, All          1,025              1,800             2,825           370,000            460,000             830,000
 Guyana, GPL                       140                240               380            35,000             45,000              80,000
 Haiti, EDH                        238                560               798            55,000             225,000             280,000
 Jamaica, JPS                      621               1,320             1,941           140,000            155,000             295,000
 Suriname, EBS                     299                640               939            50,000             105,000             155,000

 Total                            3,078              5,165             8,243           780,000           1,160,000         1,940,000

Table 1 LNG Storage Tank Capacities for Caribbean hub and spoke scenario [4]

1.2 LNG to Power                                                      The Caribbean is only one example. Other countries, such
                                                                       as the Philippines and Indonesia have much greater demand
     Storage Requirements                                              for power station conversion and new build. Also, projects in
                                                                       Central America are being considered, but based on receiving
For the Caribbean the IADB report [4] forecasts gas demand             150,000m3 LNG carriers unloading to FSRUs or onshore
of 490 MMSCFD or almost 23,000m3 of LNG per day.                       LNG regasification terminals that are effectively oversized
Assuming a hub and spoke scenario for distribution from                for the power station capacity.
the Dominican Republic, Table 1 summarizes the storage
capacity by country required in 2018 and then expansion                1.3 Background to Modular
through to 2032 to meet the forecast demand.
                                                                            LNG Tanks
For perspective a modern combined cycle gas turbine has
a thermal efficiency of between 45% to 55%. Therefore                  The authors have been involved with LNG tank design and
a 100MW power station consumes approximately 800m3                     development for almost 20 years. In that time the traditional
of LNG per day or over 24,000m3 per month. The report                  solution for LNG storage in excess of 10,000m3 has been
outlines conversion and new build forecasts for CCGT,                  a stick built 9% Ni steel single or full containment LNG
single cycle gas turbines and reciprocating gas fueled                 storage tanks. Most LNG projects have targeted throughputs
power stations.                                                        greater than 1000 MMSCFD or 7MMTPA. The storage
The results highlight a key issue for development of LNG               volumes for this size of regasification or liquefaction plant
to power projects. The storage capacities at the end of                have exceeded 160,000m3. Indeed as the capacity of LNG
each spoke are relatively small. If the capacity for the               carriers has increased up to 266,000m3 (Q-Max) the onshore
Dominican Republic is ignored the average storage capacity             storage tank size has also increased to ensure filling or
is approximately 50,000m3. If Belize is also ignored and a             discharge can be achieved within 24 hours.
nominal tank size of 20,000m3 is assumed, each phase of
development could be based on multiples of a standard tank
size. By 2018 the Caribbean market could require 20 x 20k
m3 LNG storage tanks with perhaps another 40 x 20k m3 or
20 x 40k m3 LNG tanks by 2023.
Gas and LNG Storage The Future of Modular LNG Tanks - Arup
Gas and LNG Storage | The Future of Modular LNG Tanks

Figure 1 27,500 m3 ethane/ethylene/LNG carrier operated by Evergas ©

Relatively little work has been done to develop cost effective         Presentations at the Trinidad Oil and Gas Conference in
storage tank sizes for the LNG to Power market. Tank sizes             2014 [5] and Gastech 2015 [6] have highlighted the market
greater than 160,000m3, required to receive a standard export          opportunity for LNG to power and emphasized that the
LNG carrier, would provide 10 months of storage for a                  design and delivery of smaller LNG tanks is essential to
100MW CCGT. Even for a larger power station it is clear                reduce overall cost and schedule to ensure that the cost base
that there is a mismatch between the storage tank and the              is reasonable and the market sustainable.
exporting LNG carrier. Smaller carriers exist, using Type C
                                                                       Another market that is expected to see significant expansion
or membrane technology, but there is a definite requirement
                                                                       is the LNG marine fuels business. Eagle LNG has recently
for smaller ships to support cost effective LNG to power
                                                                       completed its project in Maxville, FL, USA and Conrad
delivery. Ships in the range of 10,000m3 to 30,000m3 would
                                                                       Shipyard is building an LNG bunkering barge. The LNG
allow smaller marine facilities and be compatible with the
                                                                       volumes for each ship are suitable for Type C storage
required onshore storage.
                                                                       containers, but aggregated onshore LNG storage tank
                                                                       volumes in excess of 10,000m3 are necessary.

Figure 2 Economies of scale- tank volume [8] or number of tanks [9]
Gas and LNG Storage The Future of Modular LNG Tanks - Arup
Gas and LNG Storage | The Future of Modular LNG Tanks

1.4 The opportunities
                                                                     The
                                                                    The   key
                                                                        key   modular
                                                                            modular LNGLNG   tank drivers
                                                                                       tank drivers are:            are:
The small to midscale LNG market, supplying power                   – –Standardize  tanktank
                                                                                          design by volume based on based
                                                                                                                    site specific
                                                                          Standardize         design  by volume            on
stations or the marine fuels business, requires a smaller               seismic isolation
capacity LNG storage tank, in the range of 10,000m3 to                 site specific seismic isolation
                                                                    – Offsite tank pre-fabrication in parallel with foundation
100,000m3. The traditional solution based on 9% Ni steel             –construction
                                                                        Offsite tank pre-fabrication in parallel with
technology is stick built on site. It is well known that the unit
                                                                       foundation construction
price of LNG stored reduces as the single tank size increases       – Dedicated fabrication yard leading to improved
[8]. However economies of scale can also be achieved by              –productivities
                                                                        Dedicated and
                                                                                     fabrication   yard leading to
                                                                                         higher quality
production volume.                                                     improved     productivities  and      higher quality
                                                                    – Offsite pre-commissioning of tank
The modular LNG tank seeks to reduce the unit cost
                                                                    – –Reduced
                                                                        Offsitemanhours
                                                                                pre-commissioning      of
                                                                                        executed on site       tank
for smaller LNG storage volumes by targeting offsite
manufacturing productivity levels. The economies of scale           These  drivers target
                                                                      – Reduced            a “plugexecuted
                                                                                    manhours       and play” capability
                                                                                                             on site while
are based not on the volume of a single tank but the number         reducing costs and schedule compared to the stick built
of units produced to achieve the required volume.                   traditional solution.target a “plug and play”
                                                                      These drivers
A good reference case was the production of 25,000 m3                capability while reducing costs and schedule
tanks in South Carolina [9]. The estimated productivity              compared to the stick built traditional solution.
improvements, interpolated from the stated productivity for
the initial 10 tanks, are shown in Figure 2. It is noted that the
first sphere in that project experienced severe component fit
up and some welding issues.
Since the basic tank unit can be in the range of 10k m3 to 40k
m3, larger total volumes can be achieved with multiple tanks,
which can also align with project phasing goals.
The following sections in this paper will provide an update
on development of the modular LNG tank concept.
Gas and LNG Storage The Future of Modular LNG Tanks - Arup
Gas and LNG Storage | The Future of Modular LNG Tanks

2. Technical Development

Figure 3 Initial Modular Tank Concept [6]

2.1 Initial Concept                                             2.2 Current Concept
The initial concept [6] was based on either 9% Ni or            2.2.1 Design
membrane technology. To reduce the overall weight the
                                                                After the presentations in 2014 [5] and 2015 [6], specific
modular tank provides single containment capability,
                                                                project opportunities focused further development.
thereby eliminating the concrete wall and roof. The tank was
erected on a cellular concrete base which provided a robust     The initial concept considered a maximum volume of
susbstructure for subsequent transportation by water from the   36,000m3, and this was considered to be close to the upper
fabrication yard to the project site.                           bound of what could, or should, be pre-fabricated and
                                                                transported, before costs were negatively impacted. However,
At the project site the tank was supported on bearings,
                                                                an opportunity to consider a 40,000m3 single containment
founded on shallow footings or piles. Trenches between the
                                                                design on the US GoM coast provided the basis for the next
foundations allowed access for the self-propelled modular
                                                                phase of development. Technical assumptions are presented
transporters (SPMTs).
                                                                in Table 2. The updated design in shown in and Figure 5
Gas and LNG Storage The Future of Modular LNG Tanks - Arup
Gas and LNG Storage | The Future of Modular LNG Tanks

Figure 4 40k m3 9%Ni Steel Single Containment Modular LNG Tank General Arrangement

Figure 5 40k m3 9%Ni Steel Single Containment Modular LNG Tank Details
Gas and LNG Storage The Future of Modular LNG Tanks - Arup
Gas and LNG Storage | The Future of Modular LNG Tanks

                Remark                            Value                                    Remark                             Value
 Design Standards                  NFPA59A, API625/620                       Outer Tank
 LNG Storage Tank Type             Single Containment                        Material                            Steel ASTM A36

 Foundation Type                   Piled supported, elevated                 Outer tank diameter                 40.000                m
 Inner Tank                                                                  Min width annular space             1.250                 m
 Material                          9Ni ASTM A533 Type 1                      Dome Roof
 Net Capacity                      40,000                      m   3
                                                                             Material                            Steel ASTM A36
 Gross Capacity                    42,696                      m   3
                                                                             Spherical Radius                    40.000                m
 Inner Tank Diameter               37.500                      m             Insulation Material
 Height (ambient)                  39.380                      m             Bottom                              Cellular Glass
                                                                             Annular                             Expanded Perlite
                                                                             Suspended deck                      Glass fiber blanket

 LNG Product                                                                 Seismic Design
 Temperature                       -170                        oC            OBE (pga)                           0.037                 g
 Density (BOG)                     440                         kg/m    3
                                                                             SSE (pga)                           0.074                 g
 Density (max)                     470                         kg/m    3
                                                                             Wind
 Latent heat of vaporization       511,000                     J/kg          ASCE 7-05                           63                    m/s
 Design boil off rate (vol)        0.05                        %/day         Soils                               US GoM typical
 Maximum filling rate              850                         m3/hr         very soft to firm cohesive          0-30                  ft
 Max out pumping rate              2,250                       m3/hr         firm to stiff cohesive              30-100                ft
 Pressures                                                                   slightly over consolidated          >100                  ft
 Maximum design pressure           190                         mbar
 Minimum design pressure           -5                          mbar

Table 2 40k m3 Single Containment Tank Design Data

The key technical developments are summarized below.                       –– Side wall discharge is proposed. This is consistent with
                                                                              NFPA 59 and if in-tank shut off valves are provided the
–– The tank is elevated above ground to provide both
                                                                              design spill is significantly reduced. The tank elevation
   space for the SPMTs and also air flow to eliminate
                                                                              also ensures that the pump does not need to be recessed
   base slab heating.
                                                                              below ground to achieve the minimum NPSH. Typical
–– The cellular concrete base slab is replaced with a steel                   details were presented at LNG 12 [10] refer to Figure 6.
   grillage and concrete deck. This reduced weight which is                   The results of the techno-economic evaluation concluded
   a significant issue for the larger tank volume.                            that side wall pump discharge could reduce costs by up
–– 9%Ni was chosen over membrane based on owner                               to $6MM for a 2 x 140k m3 storage tanks (1998 prices).
   preference and concerns over permitting delays that                        But the prize is even greater for the modular LNG tank.
   might arise since membrane tanks have not yet been                         Not only is the pump platform significantly reduced in
   approved by FERC. This issue is discussed further in the                   size, refer to Figure 7, but the tanks can be manifolded
   next section 2.3.2.                                                        reducing the total number of pumps. The pumps can also
                                                                              be located outside of the bunded areas with easy access
                                                                              for maintenance.
                                                                           –– For larger total volumes, based on multiple units, the
                                                                              modular LNG tank will require individual bunded areas.
                                                                              This area can be optimized based on the work carried out
                                                                              by Coers (2005) [11].
Gas and LNG Storage The Future of Modular LNG Tanks - Arup
Gas and LNG Storage | The Future of Modular LNG Tanks

Figure 6 Proposed side entry pump suction nozzle for a single integrity LNG tank [10]

Figure 7 Comparison of roof platforms with and without side wall discharge (courtesy Cheniere and Coers [11])

2.2.2 Execution                                                           –– The hydrotest is not carried out at the fabrication yard.
                                                                             It was concluded that owners and or regulators may
Based on the design described above an execution plan
                                                                             require proof that the 9%Ni inner tank was not damaged
was developed working with Great Basin Industries and
                                                                             during transportation. Transferring the test to the project
Mammoet. The overall scope of work was divided into a
                                                                             site significantly reduces the foundation loads at the
number of work packages as summarized in Table 3.
                                                                             fabrication yard.
The following notes highlight some important issues                       –– The inner and outer tanks are erected as complete
regarding the execution plan.                                                prefabricated rings in a stepped sequence starting with
–– Fabrication yards do exist along the US GoM coast. The                    the outer tank then the inner tank. A linear layout for
   work to date has not undertaken a detailed evaluation                     multiple tank erection is shown in Figure 8. A heavy lift
   of potential sites, but greenfield development is also                    crane is used for ring installation.
   an option. This approach will increase the initial start-              –– The roof is prefabricated as one piece and lifted into
   up costs and therefore it has been assumed an existing                    position. No air lift is envisaged.
   facility will be utilized.                                             –– After roof erection the bottom insulation and inner
–– Fabrication facilities are not limited to the project                     tank bottom plate can be installed, providing weather
   country, indeed the modular LNG concept envisages                         protection to the insulation.
   regional fabrication yards that will support LNG storage               –– It is assumed that the fabrication yard has a bulkhead
   tank in that area, thereby reducing the shipping times                    suitable for load out of 5,000 te, however temporary
   and costs.                                                                loading ramps can be used, founded on a piled ground
                                                                             beam where soil conditions are not strong enough.
Gas and LNG Storage The Future of Modular LNG Tanks - Arup
Gas and LNG Storage | The Future of Modular LNG Tanks

Figure 8 Modular LNG Tank erection (courtesy of GBI and Mammoet)

Figure 9 Modular LNG Tank Transportation (courtesy of Mammoet)
Gas and LNG Storage | The Future of Modular LNG Tanks

               Tank prefabrication                          Tank Transportation                                    Project Site
 Fabrication yard enabling works               Supply of all heavy lift equipment             Enabling works for receiving tank
 Tank fabrication line foundations             Supply of all marine equipment                 Construction of tank foundation
 Material procurement                          Load out at fabrication yard                   Hydrotesting
 Steel grillage fabrication                    Tow to project site                            Perlite insulation
 Tank ring prefabrication                      Offload at project site                        Tank hook up
 Tank erection                                 Set down at project site on plinths            Bund construction
 Tank roof prefabrication                      Demobilization                                 Final pre-commissioning of tank
 Roof Erection                                                                                Ready for cooldown
 Pre-commissioning
 Preparation for transportation

Table 3 Execution Work Packages for 9% Ni steel single containment modular LNG tank

–– The tank will be moved on to the transportation vessel                2. Tank fabrication and erection can start once material is
   using SPMTs. Whether the SPMTs remain for the                            procured and delivered to the fabrication yard.
   duration of the tow depends on distance. For short                    –– Many large LNG tanks have seen lead times for 9%
   tows the SPMTs will travel with the tank, although                       Ni steel plate of 12 to 18 months. This is very market
   the tank will be lowered on to temporary supports on                     dependent but it has mitigated the schedule delay waiting
   the transportation vessel. For long tows (more than                      for foundation construction and outer wall construction.
   several days) two sets or SPMTs are require, one at the
                                                                         –– Material pre-ordering can reduce the lead times, and
   fabrication yard and one at the project site.
                                                                            financial commitments prior to final regulatory approval
–– Sea fastenings will depend on the specific tow route. For                can further reduce the schedule.
   inland water way tows or sheltered water tows initial
                                                                         –– Tank erection commences with fabrication and erection
   calculations indicate vessel motions will not require
                                                                            of the steel grillage and outer tank carbon steel outer
   any seafastening for the inner tank. The outer tank will
                                                                            tank rings. This material is on much shorter lead times.
   be fastened to the vessel deck. For longer tows or open
   water tows, temporary sea fastening of the inner tank                 –– Based on an established fabrication yard, tank erection
   will be required. Calculations have shown that the inner                 can commence well ahead of a stick built tank at the
   tank top ring stiffening and or shell thickness could be                 project site.
   increased to cater for the inertial loading. Alternatively            3. Significant, labor intensive activities are transferred from
   temporary restraints to the outer tank shell will provide                the project site to a dedicated fabrication yard.
   resistance to the inertial loads. These restraints can be             –– Project site, stick built tanks are often remote from large
   removed once the tank is installed at the project site and               resource centers, reducing productivity and or increasing
   prior to hydrotesting.                                                   labor costs.
–– Enabling works at the project site are relatively modest              –– Specialist welders are required for the inner 9% Ni tank
   and cost effective. For load below 5,000 te temporary                    which incurs a premium for remote sites. Further, in tight
   unloading ramps can be used. This will be founded on a                   labor markets, the transient labor force may be difficult
   piled ground beam. Temporary onshore mooring onshore                     to secure, whereas an established fabrication yard can
   points will be required for a traditional Mediterranean                  provide a more reliable resource.
   spread mooring pattern.                                               4. Improved productivities and quality
The key benefits of the proposed execution plan are                      –– An established fabrication yard focused on tank
1. Tank erection is not waiting on construction of the                      fabrication can invest in training and equipment to
   project site tank foundation.                                            increase productivities and reduce costs.
–– Regulatory processes normally prevent any construction                –– Prefabrication of tank parts can be done in covered
   on site before project permits have been secured.                        areas, further increasing productivities and
–– Many LNG sites require significant enabling works                        workmanship quality.
   including, but not limited to, bulk earthworks before
   foundation construction can commence.
Gas and LNG Storage | The Future of Modular LNG Tanks

                                   Figure 10 23m diameter tank under tow (courtesy of Smith Group)

Figure 11 Peru LNG Tank 130,000m3 with 256 Triple PendulumTM bearing (courtesy of EPS)

Figure 12 Incheon LNG Terminal founded in elastomeric bearings
Gas and LNG Storage | The Future of Modular LNG Tanks

2.3 Further Development                                            The key driver on tank shell design and quantities is seismic
                                                                   loading. This is the most significant lateral load on the tank
2.3.1 Standard Tank Design by Volume                               and in areas of moderate to high seismicity, will govern the
                                                                   tank geometry and shell weight. Some tank designs have
The work carried out on the 40k m3 modular LNG tank                adopted seismic isolation to reduce the inertial loading and
confirmed technical feasibility and schedule advantages            shell quantities, refer to Figure 11 and Figure 12. According
over a stick built solution. It also highlighted the               to Earthquake Protection Systems Inc. (EPS) [12] an 85%
importance of fabrication yard set up costs. When these            reduction in seismic loading was achieved, which reduced
are spread over many tanks they are not significant, as            the overall cost of the tank construction.
for any pre-engineered, manufactured product. To ensure
that competitive pricing is achieved from the start it was         Despite the cost savings on the Peru LNG tanks, seismic
recognized that offsite pre-fabrication should not be              isolation is not the default approach for dealing with
delivered on a bespoke design basis for each project. The          moderate to high seismic loads. Lowering the tank aspect
modular LNG tank concept would be enhanced if standard             ratio (H:R), using inner tank straps to prevent uplift and
designs could be offered for any site, anywhere in the world.      advanced nonlinear dynamic soil structure interaction
                                                                   (DSSI) can be used to lower the inertial load effects on the
A standard tank design would permit the fabricator to further      tanks. Seismic isolation automatically elevates the tank and
improve its fabrication and erection methods. Key site             introduces a second foundation or base slab. This increases
specific drivers for modular LNG tank design are:                  schedule and cost, to which the isolator cost is also added.
1. Soil conditions and foundation design                           For the modular LNG tank these costs are already included
2. Seismic conditions and inertial loads on tank and               and the elevated tank is part of the overall concept to allow
   foundation                                                      for installation using SPMTs. In fact the modular LNG tank
3. Other environmental loading conditions (such as wind            is very well suited to adopting seismic isolation because
   and snow loading)                                               all components are included in the existing design for
                                                                   other reasons.
4. Temperatures and effect on insulation design
5. Tow route, duration and storm conditions                        Initial calculations confirm that tuning the elastomeric
                                                                   bearing will lower the seismic loads to those of the base
The soil conditions will always be site specific and provided      design. The base design could be chosen utilizing the 33%
settlement criteria are satisfied then there is no direct impact   over stress permitted under the Operating Basis Earthquake
on the modular tank design, except for seismic response.           (OBE). For areas of high seismicity, friction pendulum
                                                                   bearings of the type provided by EPS may be required. The
Other environmental loading conditions are not significant
                                                                   solution for any specific site requires a detailed analysis
drivers of tank shell and roof quantities and conservative
                                                                   of the tank foundation system incorporating isolators. It is
assumptions could be made to eliminate this variation.
                                                                   important that the foundation system (shallow or deep) is
Preserving a standardize design is always a compromise.            incorporated into the model, because significant reduction in
Perlite insulation could be maintain a constant thickness and      loads can arise due to non-linear response in the soil resulting
heat leak variations addressed by changes in the roof and          in longer period response and higher levels of damping.
base insulation thicknesses. This would impact the overall
height of the tank and is not necessarily the most efficient
solution. Further work will be required to understand the
sensitivity to this issue, but if insulation properties cannot
be easily adjusted for a given thickness then conservative
insulation thicknesses could be appropriate.
Tank response during the tow has been investigated. It is
clear that any extreme motions that would impact the basic
tank design can be addressed with temporary sea fastenings
and strengthening to the outside of the tank which can be
ultimately removed and reused.
Gas and LNG Storage | The Future of Modular LNG Tanks

Figure 13 Effect of seismic isolation on acceleration and displacements [13]

Seismic isolation results in longer period response which is               2.3.2 Membrane Modular LNG Tank
accompanied by an increase in tank transient displacements.
                                                                           Membrane tanks are not new, indeed more than 100 onshore
This will impact the design of incoming pipework but
                                                                           membrane tanks have been built since 1972, and over 85% of
experience has shown that differential movements can be
                                                                           all LNG carriers utilize the membrane technology solution.
accommodated in the piping design. If displacements are
                                                                           Two membrane tanks are currently under construction
considered too high then viscous dampers can be added to
                                                                           for Energy World Corporation at Sengkang, Sulawesi,
the isolation system to reduce peak displacements.
                                                                           Indonesia and Pagbilao, Philippines. In addition there
Isolation of vertical ground motions is not as common,                     have been recent developments in international codes to
and has not been proposed for LNG tanks to date. Vertical                  recognize and incorporate design provisions for membrane
accelerations will increase the effective weight of the LNG                tanks. Nevertheless, the dominant tank technology for LNG
and therefore the hoop stresses. In areas of high seismicity,              storage remains 9% Ni steel. A description of the membrane
such as the west coast of the US, peak spectral accelerations              technology and comparison with above ground 9% Ni
approaching 1g can occur, but careful DSSI can mitigate                    storage tanks is presented by Ezzarhouni etal (2016) [7].
these effects.
                                                                           Whilst this comparison was for a full integrity or full
Long period ground motions cannot be isolated and these                    containment design there are many attributes of the system
give rise to sloshing effects on the liquid surface. The codes             that are compatible with the objectives of the modular LNG
are clear on the requirements for freeboard under both OBE                 tank and would enhance the overall concept, further lowering
and SSE conditions. As seismic intensity increases, the                    the costs and reducing the schedule.
freeboard height for a given tank aspect ratio increases. To
preserve a standard tank design, baffles could be installed
on the underside of the roof to disrupt the sloshing wave,
but this is a novel approach which might not be acceptable
to owners or regulators. Alternatively, it is accepted that the
tank height must be increased to address this issue. However
it would require only a minor height adjustment to the
standard tank design.
Further work is required to understand the variations and
impact that vertical and horizontal seismic accelerations
have on the modular tank design, but initial results are
encouraging and a standardized tank design is possible,
which should translate into further reductions in cost                     Figure 14 Top view of the bottom floor showing membrane system
and schedule.                                                              (courtesy GTT)
Gas and LNG Storage | The Future of Modular LNG Tanks

These benefits are summarized below and quantified in            –– The design is fundamentally more robust with respect to
Section 3:                                                          transportation loadings. Recalling that 85% of all LNG
                                                                    carriers use the technology it is a well proven technology
–– GTT has developed a highly modular membrane system
                                                                    able to accommodate the strains associated with vessel
   based on pre-engineered, manufactured components.
                                                                    motion. Further, all transportation loads can be designed
   This is well aligned with the objectives of a standardized
                                                                    into the outer tank which can easily accommodate
   tank design.
                                                                    seafastening and temporary strengthening. There is no
–– There is only one structural tank and it is located on           thin walled inner shell to seafasten.
   the outside. The inner 9% Ni and outer A36 shells are
   replaced with a 1.2mm stainless steel liner and A537
   Class 2 outer shell. Total steel weight and costs             Additional
                                                                   The keydesign benefits
                                                                            modular   LNG of a tank
                                                                                               membrane  LNG
                                                                                                    drivers   tank are:
                                                                                                            are:
   reduce significantly.                                         –– –Thermal    cyclingtank
                                                                                         of 9% Ni tanks
                                                                      Standardize           design  byisvolume
                                                                                                           not recommended
                                                                                                                    based on
–– Stainless steel and A537 Class 2 have much shorter                because of the inner tank radial movements. However,
                                                                       site specific seismic isolation
                                                                     the membrane tank is not subject to the same constraints
   procurement lead times and will continue to exhibit
   much lower price volatility.                                     –asOthe linertank
                                                                         ffsite     accommodates  the thermal
                                                                                        pre-fabrication        strains within
                                                                                                          in parallel   with the
                                                                     stainless steel corrugations.
–– The total volume of wall insulation, based on PUF                  foundation construction
   filled plywood boxes, is less. Hence, for the same            –– The membrane insulation space is maintained under a
   overall external tank diameter and volume the                   –nitrogen
                                                                      Dedicated
                                                                               purgefabrication   yard leading
                                                                                      which is continuously       to This
                                                                                                            monitored.
   corresponding tank height is reduced, further reducing           isimproved
                                                                        consideredproductivities
                                                                                    a more effective and higher
                                                                                                     method        quality
                                                                                                             of leak detection
   the shell quantities.                                            than temperature sensors which rely on a spill of LNG
                                                                   –rather
                                                                       Offsite
                                                                            thanpre-commissioning
                                                                                 vapor.                 of tank
–– The tank transportation weight is lighter than the 9% Ni
   steel option, despite having all insulation installed prior   –– –The
                                                                      Reduced   manhours
                                                                         membrane            executed
                                                                                    liner permits the useon site in the tank
                                                                                                         of sumps
   to load out.                                                      bottom thereby increasing the net useable tank volume.
–– Membrane tanks do not require hydrotesting. Leak              –– These  drivers
                                                                     In summary,  thetarget a “plug
                                                                                      membrane       andLNG
                                                                                                 modular  play”tank takes
   tightness is demonstrated through the ammonia leak test.          important steps towards the “plug and play”
                                                                    capability while reducing costs and schedule objective.
   Foundation proof loading is of questionable value even          compared to the stick built traditional solution.
   for 9% Ni LNG tanks and is not required for membrane
   LNG tanks which use polyurethane foam (PUF)
   bottom insulation.
–– No hydrotest means that the tank can leave the
   fabrication complete with all insulation installed and
   fully pre-commissioned. After installation at the project
   site the ammonia leak test could be rerun to satisfy
   the owner and regulator that no damage was sustained
   during the sea tow.
Gas and LNG Storage | The Future of Modular LNG Tanks

3. Comparison of 9% Ni Steel
   and Membrane Tanks
                   Dimension                          9% Ni Modular LNG Tank                      Membrane Modular LNG Tank
 Net LNG storage volume (m3)                                                           40,000

 Outer tank diameter (m)                                                               40.000
 Inner tank diameter (m)                                        37.500                                         38.800
 Design Maximum Liquid Level (m)                                38.802                                         36.280
 Outer tank height to roof joint (m)                            42.280                                         39.460
 Roof rise (m)                                                  5.365                                          5.365
 Overall tank height from ground (m)                            50.447                                         47.627

Table 4 Comparison of principal dimensions for 9% Ni and membrane modular LNG tank

3.1 Quantities                                                      3.2 Schedule and Cost
Table 4 and Figure 15 summarize the principal dimensions of         A comparison of construction schedules is shown in Table
the 9% Ni and membrane modular LNG tanks.                           7. The schedule is based on an EPC contract, with all design
                                                                    data, including soils information available at notice to
Table 5 compares the weights, and thereby the quantities,
                                                                    proceed. The membrane tank is estimated to be ready for
for 40k m3 9% Ni and membrane modular LNG tanks. The
                                                                    transportation at the same time as the 9% Ni but the overall
following notes explain the key differences.
                                                                    schedule is 2 months quicker because there is no hydrotest
–– The outer tank shell weights are similar weight. The             and annular insulation to complete at the project site.
   membrane tank is the same diameter, but is shorter
                                                                    Costs are sensitive to local labor conditions and material
   because of lower wall and base insulation thicknesses.
                                                                    costs. The costs have, therefore, been normalized and
   The membrane tank uses ASTM A537 Class 2 steel
                                                                    compared to a traditional stick built single containment LNG
   compared to A36 for the 9%Ni tank. This is a stronger
                                                                    tank at 100%.
   steel and whilst more expensive per tonne, is more
   efficient in terms of weight and subsequent welding
   costs. Bottom shell thickness is 23mm compared to
   16mm for the 9% Ni tank.
–– The inner tank compares the weight of ASTM A533
   Type I 9% Ni steel with 1.2mm A304L stainless steel
   membrane. Since the membrane is not structural the
   weight is substantially less, saving 476te on the inner
   tank weight.
–– Roof insulation weights are similar, however the PUF
   insulation system shows a saving in weight of 336te over
   the perlite, resilient blanket and foam glass blocks used
   on the 9% Ni tank.
–– The elimination of the inner structural tank and use of
   PUF insulation has resulted in overall weight savings of
   20%. Further the membrane transportation weight is less
   than the 9% Ni which excludes the perlite.

These results demonstrate that the membrane tank is a lighter
design than the 9% Ni steel tank.
Gas and LNG Storage | The Future of Modular LNG Tanks

Figure 15 General arrangement for 9% Ni and membrane modular LNG tanks

              Item                        9% Ni Modular LNG Tank                      Membrane Modular LNG Tank
                                    Total (te)              Transport (te)         Total (te)                Transport (te)
 Outer Tank

 Shell                                504                       504                  544                         544
 Base                                  74                        74                   74                          74
 Roof                                 107                       107                  107                         107
 Inner Tank
 Shell                                467                       467                   45                          45
 Base                                  66                        66                   12                          12
 Insulation
 Bottom                               502                       502                  234                         234
 Wall                                 368                                            300                         300
 Roof                                  50                        50                   54                          54
 Pump Platform                        350                       350                  350                         350
 Grillage
 Concrete                             990                       990                  990                         990
 Steel                                212                       212                  212                         212
 Sub-total                           3,690                     3,323                2,922                        2,922
 Contingency                          554                       498                  438                         438
 Total                               4,244                     3,821                3,360                        3,360

Table 5 Comparison of tank weights for 9%Ni and Membrane Modular LNG Tanks
Gas and LNG Storage | The Future of Modular LNG Tanks

          9% Ni Single Containment                   9% Ni Modular LNG Tank                      Membrane Modular LNG Tank
                      100%                                     90%                                             80%

Table 6 Cost comparison of 9% Ni and Membrane Modular LNG Tank 40k m3

                     Activity                                              Months from notice to proceed
                                                     9% Ni Modular LNG Tank                      Membrane Modular LNG Tank
 Notice to Proceed                                               0                                              0
 Purchase and fabricate material                                +5                                              +4
 Grillage construction complete                                 +6                                              +5
 Outer tank erection complete                                   +14                                            +10
 Inner tank erection complete                                   +14                                            +16
 Roof installation complete                                     +15                                            +11
 Insulation complete at fab yard                                +17                                            +17
 Transport and set tank                                         +18                                            +18
 Hydrotest                                                      +19                                            n/a
 Insulation complete at project site                            +20                                            n/a
 Final pre-commissioning                                        +22                                            +20
 Ready for Cooldown                                             +22                                            +20

Table 7 Comparison of schedules for 9% Ni and Membrane Modular LNG Tanks
Gas and LNG Storage | The Future of Modular LNG Tanks

4. Conclusions

The ongoing development work on the modular LNG tank
concept has confirmed technical feasibility of both 9% Ni         The small to mid-scale LNG and LNG to
and membrane solutions. The membrane option will offer a          Power markets require smaller tanks. Cheaper
more robust design for transportation and also lower costs
                                                                  and faster, smaller tanks will greatly assist this
and shorter schedules.
                                                                  developing market.
More importantly, the concept of a cheaper and quicker
prefabricated small to medium sized tank with “plug and
play” capability, based on a standard design that can be
installed for any site, anywhere in the world is achievable.
Single containment is not appropriate for all projects and
jurisdictions. Full containment options are too heavy to
transport cost effectively, but initial work looking at precast
wall panels and wire wound prestressing as used in the water
tank industry, combined with the membrane technology
should offer cost and schedule savings.
Gas and LNG Storage | The Future of Modular LNG Tanks

References
1.   IGU (2016), “2016 World Energy Report”, International Gas Union       9.   Veliotis, P.T., (1977) “Solution to the Series Production of
2.   Shell (2017) “Shell LNG Outlook 2017”, http://www.shell.com/               Aluminum LNG Spheres”, Society of Naval Architects and Marine
     energy-and-innovation/natural-gas/liquefied-natural-gas-lng/lng-           Engineers Transactions, Volume 85, 1977, pp 481-504.
     outlook.html                                                          10. Antalffy, L. P., Aydogean, S., De la Vega, F. F., Malek, D. W.,
3.   Shiryaevskaya, A., Burkhardt, P., (2017), “Hottest thing in LNG           Martin, S., (1998) “Technical-economic evaluation of pumping
     is producing power as record glut looms”, Bloomberg news                  systems for LNG storage tanks with side and top entry piping
     article 18 January 2017, https://www.bloomberg.com/news/                  nozzles”, LNG12, Perth, 4-7 May, 1998, Poster Session B.8
     articles/2017-01-18/hottest-thing-in-lng-is-producing-power-as-       11. Coers, D, (2005) “Transshipping LNG – Downscaling Field-
     record-glut-looms                                                         Erected Storage Tanks for Lower Profile”, 2005 (Presentation with
4.   Castalia (2015), “Natural Gas in the Caribbean – Feasibility              photos provided by CB&I).
     Studies, Revised final report (Vol I and II)”, Report to the Inter-   12. Peru LNG, Melchoriate, Peru, “Triple Pendulum bearings protect
     American Development Bank, 30 June 2015.                                  critical storage tanks”, Earthquake Protection Systems Inc, http://
5.   Raine, B., (2014) “Onshore Mid-Scale LNG Terminal Storage and             www.earthquakeprotection.com/pdf/Peru_LNG_Dec08.pdf
     Modularization”, Trinidad Oil and Gas Conference, May 2014            13. Symans, M. D., “Seismic Protective Systems: Seismic Isolation”,
6.   Raine, B., Powell, J., (2015), “Onshore Mid-Scale LNG Terminal            FEMA, Instruction Material Complementing FEMA 451, Design
     Storage Modularization”, Gastech 2015, Singapore, 29 October              Examples, Seismic Isolation 15-7-1, http://www.ce.memphis.
     2015.                                                                     edu/7119/PDFs/FEAM_Notes/Topic15-7-SeismicIsolationNotes.
7.   Ezzarhouni, A., Powell, J., Elliott, S., (2016) “Why a Membrane           pdf
     Full Integrity Tank?” LNG 18, Perth, PO-8, 11-15 April 2016
8.   Long, B., (1998) “Bigger and Cheaper LNG Tanks? Overcoming
     the obstacles confronting freestanding 9% Nickel Steel Tanks up
     to and beyond 200,000m3”, LNG 12, Perth, 4-7 May 1998, Paper
     Session 5.6.
Contact us:
energy@arup.com

Find us on Twitter and LinkedIn
You can also read