Welcoming the global gas industry to Asia's business epicentre

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Welcoming the global gas industry to Asia's business epicentre
VISIT OUR STAND C430, HALL 4

               The Official 2015 Conference Newspaper

Published by                                     ,                       and
                                                                                                                                                                    DAY ONE
                                                                                                                                                          Tuesday, 27 October 2015

Welcoming the global gas industry                                                                                                                      INSIDE THIS ISSUE

to Asia’s business epicentre
                                                                                                                                                       3 Conference Programme,
                                                                                                                                                         Expo Map and Gastech App

                                                                                                                                                       8 Pipeline operator upgrades
GAVIN SUTCLIFFE, Head of Conference & Governing Body, Gastech                                                                                            control for critical
                                                                                                                                                         compressor operations
                          Welcome to Gas-                                                                                                                 Rockwell Automation’s PlantPAx
                       tech Singapore 2015!                                                                                                               process automation system
                       We are continuing the                                                                                                              integrates stations along 8,200 mi
                       event’s Asian road-                                                                                                                US gas transmission pipeline.
                       show following the
                       huge success of Gas-
                                                                                                                                                       9 Production underway
                       tech Korea in 2014,                                                                                                               at Air Products’ new
and this year we will again reflect the dyna-                                                                                                            manufacturing facility
mism and new business opportunities in the
global gas and LNG supply chain.
   Singapore, now celebrating 50 years as
an independent nation, has proved one of
Asia’s (if not the world’s) great commer-
cial success stories. It is acknowledged as
the hub of Southeast Asia and a centre of
technical and commercial excellence in
the fastest growing market for LNG. The                                                                                                                   32-acre Florida facility allows
World Bank has ranked the country at the                                                                                                                  easier seaport access for
top of its list for ease of doing business for                                                                                                            shipment of heat exchangers.
the last nine years, and opportunities for
new partnerships between international gas                                                                                                             12 Höegh LNG perspectives
and LNG players are only just emerging.                                                                                                                   on the market for floating
   Singapore’s potential is vast, with many                                                                                                               LNG solutions
key emerging markets from Southeast                       With its capacity to generate major new business in gas and LNG, Singapore is a natural         Gas Processing sits down with
Asia now seeking more natural gas and                     choice for this year’s Gastech Conference.                                                      Höegh LNG President and
LNG infrastructure and capacity. As North                                                                                                                 CEO Sveinung J.S. Støhle.
Asia continues to dominate global gas and            holders. New faces and organisations rep-         ronment; the future use for gas in the Asian
LNG demand, emerging domestic markets,               resenting Asia-Pacific include CNOOC,             fuel mix; emerging gas markets; and con-        14 Successful startup
including Indonesia, Malaysia, Vietnam,              JERA (Chubu-TEPCO partnership), SIN-              tracting, pricing and trading. Gastech also        of Qatar JBOG project
Thailand, the Philippines, Myanmar and—              OPEC, Santos, Pavilion Energy, IE Sin-            remains dedicated to delivering the stron-
at the epicentre—Singapore, are creating             gapore, Singapore LNG, Bank of Tokyo              gest original presentations in shipping; gas
new opportunities for those seeking to gain          Mitsubishi, Badak LNG and the EMA.                as a transport fuel; innovative technologies;
a market foothold.                                      The Gastech conference has never               floating LNG and containment; and the
   Domestic gas and LNG fuel continue                before been so widely endorsed by so              global market outlook for gas.
to offer more flexible, cost-effective and           many companies, reaffirming our robust               Another innovative feature for Gas-
scalable solutions, underpinned with exist-          approach to selecting and delivering the          tech Singapore is our Global Meetings
ing and emerging technologies. With its              finest presentations, papers and speakers.        Programme, which enables you to plan               The country’s National Vision
world-class financial and legal institutions,        Across four days of content, our confer-          specific meetings with relevant delegates          includes a focus on recovering
Singapore has the capacity and competency            ence commences with an afternoon of               throughout the event. This is managed              the flared gas at its LNG berths.
to generate major new business in gas and            high-profile keynote and panel speakers           using our tailor-made approach and our
LNG, catalysing regional investors and               before launching into 12 dedicated streams        team onsite, allowing you to maximise           19 The “Lion City” welcomes
stakeholders to drive the uptake in gas use          with careful consideration of Asia-Pacific        your time to drive new relationships.              visitors with open arms
across Southeast Asian domestic markets.             stakeholder needs, but with critical appeal          On behalf of the organisers and our             Singapore, the epicentre of
   This year’s conference agenda was again           to our international community.                   hardworking, dedicated Governing Body,             Southeast Asia’s growing
advised, and then meticulously shaped,                  Fresh topics and themes reflect the con-       enjoy the conference and make the most of          LNG market, showcases its
by a Governing Body that welcomed an                 tinually-evolving industry, with sessions         the outstanding presentations, speakers and        unique culture and people.
increasing number of key regional stake-             tailored to health, safety, security and envi-    networking opportunities. ■
Welcoming the global gas industry to Asia's business epicentre
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                                                                                                                     GasProcessingNews.com | SEPTEMBER/OCTOBER 2015

                                                                                         LNG TECHNOLOGY
Processing Industry!                                                                                                                                            PLANT DESIGN
                                                                                                                                                     Pair NGL recovery with LNG
                                                                                                                                                        for improved processing
                                                                                                                                                   Reduce costs for fired heater
                                                                                                                                                   purge systems in LNG plants
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Processing covers the latest in process technologies,
equipment, operations and maintenance, and environment
and regulations pertaining to Natural Gas Liquids (NGLs),
Liquefied Natural Gas (LNG), Gas-to-Liquids (GTLs) and
Liquefied Petroleum Gas (LPG). GasProcessingNews.com
provides breaking news, market insight, in-depth articles
covering the latest developments and advancements in the     Special Supplement to

gas processing industry, project data and more.
Welcoming the global gas industry to Asia's business epicentre
Conference Programme Gastech Expo Map
TUESDAY, 27 OCTOBER

AFTERNOON

12:15–13:30       Delegate Lunch

13:50–14:00       Organizer and Gastech Governing Body Chairmen’s Welcome
                  ■ Chris Clucas, Group Fleet Director,
                    Bernhard Schulte Shipmanagement Ltd.
                  ■ Paul Sullivan, Senior Vice President—
                    Global LNG and FLNG, WorleyParsons Group

14:00–14:15       Government Host Welcome Address
                  ■ Teo Eng Cheong, Chief Executive Officer,
                    International Enterprise Singapore

14:15–14:40       Host Keynote Address—Building a Sustainable
                  Energy Business
                  ■ Helge Lund, Chief Executive Officer, BG Group

                                                                                    HAVE YOU DOWNLOADED
14:45–15:00       Singapore Keynote Address
                  ■ Seah Moon Ming, Executive Director & Chief Executive Officer,
                     Pavilion Energy Pte Ltd.

15:00–15:15       Global NOC Keynote Address
                                                                                    THE GASTECH APP?
                  ■ Alexander Medvedev, Deputy Chairman of the Management           The Gastech App, sponsored by CB&I, is a full networking
                    Committee, Gazprom                                              tool, providing instant capability to collect contact and
                                                                                    content information—like a mobile business card!
15:15–15:45       Networking Break
                  Sponsored by Pavilion Energy                                      GASTECH APP FEATURES:
                                                                                      • Free to download—Available to all Gastech registered attendees
15:45–16:45       Suppliers Panel Debate: “What will be the Impact of                 • Improved networking capabilities—Built in QR reader allowing
                  Lower Oil and LNG Prices on LNG Buyers and Sellers                    connections to be made effortlessly
                  Over the Next 5 Years?”                                             • Peer to Peer interaction—Ability to easily connect with exhibitors,
                  ■ (Moderator) Joseph A. Bevash, Partner—Tokyo,                        delegates and visitors
                    Hong Kong, Singapore, Latham & Watkin LLP                         • View all your connection details on your personalised timeline
                  ■ Pierre Breber, Executive Vice President, Chevron                  • Switch between the Gastech App and Global Meetings
                  ■ Hamad Mubarak Al-Muhannadi, Chief Executive Officer,                Programme (separate login required)
                    RasGas Co. Ltd.                                                   • Stay up to date with the latest notifications
                  ■ Steve Hill, Executive Vice President, Global Energy
                    Marketing and Shipping, BG Group                                DOWNLOAD FOR FREE from your app store
                  ■ Philip Olivier, Chief Executive Officer, ENGIE GLOBAL LNG       or visit www.gastechsingapore.com/app
                  ■ William M. Walker, Governor, The State of Alaska, US

16:50–17:50       Importers Panel Debate: “What will be the Impact of
                  Lower Oil and LNG Prices on LNG Buyers and Sellers                                                                                     Published by Hydrocarbon Processing

                                                                                    Gastech
                                                                                                                                                         as four daily editions, 27–30 October
                  Over the Next 5 Years?”
                                                                                                                                                         2015. If you wish to advertise in this
                  ■ (Moderator) Ian Catterall, Managing Director, Head of Natural                                                                        newspaper, or to submit a press release,
                    Resources Project Finance, Bank of Tokyo-Mitsubishi UFJ Ltd.                                                                         please contact the editor via email
                  ■ Shigeru Muraki, Executive Advisor, Tokyo Gas Co. Ltd.                                                                                at Mike.Rhodes@GulfPub.com.
                  ■ Jong-Ho Lee, Senior Executive Vice President, Korea Gas
                    Corporation (KOGAS)                                             Advertisers                                                          Vice President, Midstream
                  ■ Hiroki Sato, Vice President, Fuel Procurement Department,                                                                            and Downstream
                                                                                    ABS�������������������������������������������������������������7
                    JERA Co. Inc.                                                                                                                        Bret Ronk
                                                                                    ADNOC����������������������������������������������������� 4
                  ■ Huang-Chang Lee, Deputy Chief Executive Officer–Natural                                                                              Gastech Contacts
                    Gas Business, CPC Corporation Taiwan                            Construction Boxscore Database������ 13                             Gavin Sutcliffe, Head of Conference
                  ■ Satpal P. Garg, Director of Finance, ONGC Videsh Ltd.           dmg::events global energy�������������1, 20                           and Governing Body
                                                                                                                                                         Charlie Cracknell, Event Director
                  ■ Weiguo Shan, Head of Gas Market Research, ETRI, China           Gas Processing�����������������������������������������2
                                                                                                                                                         Editor
                    National Petroleum Corporation (CNPC)                           Gulf Publishing Company Events��������9                             Mike Rhodes
                                                                                    HOEGH LNG����������������������������������������������5            Contributing Editors
18:30–21:00       The Gastech Industry Party, Gardens by the Bay
                                                                                    QATARGAS Operating Company����������1                               Kurt Abraham
                  Hosted by Chevron
                                                                                    US Gas Processing Plant Directory����� 11                           Adrienne Blume
                                                                                                                                                         Photographer
CONFERENCE AND EXHIBITION OPENING TIMES                                                                                                                  Kelly Abraham
                                       Conference              Exhibition                                                                                Production Manager
                                                                                                                                                         Angela Bathe Dietrich
Tuesday 27 October 2015                14:00–17:50             10:00–18:00
                                                                                    www.HydrocarbonProcessing.com                                        Artist/Illustrator
Wednesday 28 October 2015              09:00–18:00             10:00–19:00
                                                                                                                                                         David Weeks
Thursday 29 October 2015               09:00–18:00             10:00–18:00          2 Greenway Plaza, Suite 1020
                                                                                    Houston, TX 77252-77046 USA                                          Advertising Production Manager
Friday 30 October 2015                 09:00–13:00             10:00–16:00          +1-713-529-4301                                                      Cheryl Willis

                                                                    Gastech Conference Newspaper ■ DAY ONE                                                      Tuesday, 27 October 2015            3
Welcoming the global gas industry to Asia's business epicentre
Welcoming the global gas industry to Asia's business epicentre
Visit our Gastech stand B520.

                                          Höegh LNG is a leading owner and operator of floating LNG import
                                          infrastructure (FSRUs), has developed flexible FLNG design solutions and is
                                          an experienced operator of LNG Carriers.

  www.hoeghlng.com

CoTEs showcases the latest developments
  Banner Gastech Show Daily 2015.indd 1                                                                                                                                                07.09.2015 10:01:30

and applications in gas technology
   The Centres of Technical Excellence                     cruise ships with the world’s largest guest   as part of the Floating LNG stream. The new     supply of LNG to islands in the Caribbean
(CoTEs) programme is open to all Gastech                   capacities in the world. On the infrastruc-   FLNG concept offers some 20% reduction          or in Southeast Asia,” explains Philippe
Exhibition visitors. This popular seminar                  ture side, South Korea has announced plans    in annual OPEX, adds only a small increase      Berterottière, GTT Chairman and CEO.
series—80 cutting-edge sessions con-                       to construct LNG bunkering terminals at a     in CAPEX and increases overall safety.             Other presentations will include an
ducted over four days by leading industry                  number of its ports.                                                                          array of LNG technology issues in process,
experts—delivers awareness of technologi-                     Gastech’s CoTEs, in association with       Capitalising on potential of small-             design, infrastructure, power and LNG car-
cal developments and applications in the gas               DNV GL, will welcome the Maritime and         and mid-scale LNG. A full-day stream            rier technology. The programme will also
and LNG industries.                                        Port Authority of Singapore and top engine    will highlight the potential and challenges     address: Gas Processing, LNG as a Marine
                                                           maker, Rolls-Royce, to specifically outline   of small- and mid-scale LNG in Southeast        Fuel, Natural Gas Vehicles, LNG & Gas
Moving LNG bunkering beyond                                what is needed to realise LNG bunkering in    Asia. These projects are offering economi-      Carrier Shipbuilding, Offshore Technology,
“chicken and egg” problem. A full                          Southeast Asia. These seminars will feature   cal solutions to develop Asia’s energy and      LNG Facilities & Infrastructure, Informa-
day has been dedicated to the latest devel-                industry experts from Shell, TGE Marine       maritime landscapes.                            tion & Communication Technology in Gas,
opments in LNG bunkering technology,                       Gas Engineering and FMC Technologies.            GTT, the leading expert in cargo contain-    and Pipeline Infrastructure.
which is becoming more relevant as indus-                                                                ment systems, LNG carriers and land stor-          The CoTEs seminars have been a regular
try shows its determination to overcome its                DNV GL to unveil latest FLNG                  age of LNG, will share its industry exper-      draw at the Gastech Exhibition since 2011,
“chicken and egg” problem. Carnival Corp.                  technology. The company will also             tise. “We see good potential in this market     and they provide technology firms, research
is the latest to support LNG bunkering by                  discuss how its latest technology will help   because there is a real need for a supply       institutes and other technical experts an
signing a multi-billion dollar contract to                 overcome current challenges in unlocking      chain adapted to smaller quantities, coastal    interactive platform to showcase and discuss
build four “next-generation” LNG-powered                   previously inaccessible offshore gas fields   transportation, river transportation, and the   developments in gas technology. ■

 CoTEs—TUESDAY 27 OCTOBER 2015

                           GAS PROCESSING (Exhibition Theatre A)                     LNG AS A MARINE FUEL (Exhibition Theatre B)               FLOATING LNG (Exhibition Theatre C)
Introduction               Moderator Introductory Remarks                            Moderator Introductory Remarks                            Moderator Introductory Remarks
10:15–10:30                John Sheffield, Consultant Instructor,                    Leo Karistios, Global Gas Technology Market Manager,      Conn Fagan, Vice President, Business Development,
                           PetroSkills | John M. Campbell & Co.                      Lloyd’s Register                                          DNV GL Offshore Gas Projects
Session 1                  Why Do We Need to Have Gas Processing?                    LNG as a Marine Fuel—Where Technology Meets Logistics     An Economic Shallow Water LNG Concept
10:30–10:55                John Sheffield, Consultant Instructor,                    James Forsdyke, Asia Marine Sales and Marketing           Augusto Bulte, Project Development Manager,
                           PetroSkills | John M. Campbell & Co.                      Manager, Lloyd’s Register                                 Amec Foster Wheeler
Session 2                  Sour Gas Treatment Technology Selection—                  Trends and Adoptive Concepts in Marine Maintenance        Combining Shipping and Offshore Experience in
11:00–11:25                Pushing Boundaries Using Novel Hybrid Processes           Sören Karlsson, Business Development Manager,             an Innovative Terminal Design for Different LNG
                           Ankur Jariwala, Senior Product Manager, Cameron Intl.     Fuel Gas Handling, Wärtsilä Corp.                         Applications
                                                                                                                                               Tore Røysheim, CEO, GraviFloat AS
Session 3                  Combination Filtration For Removing Divalent Salts        High Manganese Steel for LNG Storage Applications         Innovation: A Safer, Smarter, Greener FLNG
11:30–11:55                and Contaminants From Monoethylene Glycol (MEG)           Kihwan Kim, Senior Principal Researcher, POSCO            for the Future
                           Reclamation Units                                                                                                   Richard Whitehead, Vice President,
                           Barry A. Perlmutter, President & Managing Director,                                                                 Global LNG Segment, DNV GL
                           BHS-Sonthofen Inc.
Session 4                  Desulphurization of Lean Gas with Thiopaq O&G             “LNG Ready” Solutions Using GTT Membrane                  Process Cycle Options for FLNG
12:00–12:25                Colin Choong, Licensing Technical Manager,                Fuel Tank Solutions                                       Annemarie Weist, LNG Process Engineer Manager,
                           Shell Global Solutions (Malaysia) Sdn. Bhd                Arthur Barret, Program Director LNG Bunkering, GTT        Air Products
12:25–13:45                Break
Moderator Recap            Moderator Recap                                           Moderator Recap                                           Moderator Recap
13:45–14:00                John Sheffield, Consultant Instructor,                    Leo Karistios, Global Gas Technology Market Manager,      Conn Fagan, Vice President, Business Development,
                           PetroSkills | John M. Campbell & Co.                      Lloyd’s Register                                          DNV GL Offshore Gas Projects
Session 5                  Process Technology for Rich Natural Gas, NGL              LNG Bunkering Procedures—Process and the                  Panel Discussion: Choosing a FLNG Pre-Treatment
14:00–14:25                and Condensate Applications                               Human Element                                             Technology
                           Zaheer Malik, Manager of Process Technology, Global       Douglas Raitt, Regional Consultancy Manager,              Laurent Normand, Business Development Manager,
                           Midstream & Gas Processing, Wood Group Mustang            Lloyd’s Register Asia                                     Prosernat; Fedrik Vancraeynest, Lead Process Engineer,
Session 6                  Commercializing SE Asia Sour Gas Resources                A Scalable, Prismatic Pressure Vessel with Applications   Honeywell, UOP LLC; Ralf Notz, Senior Technology
14:30–14:55                Robert Denton, Senior Process Consultant,                 for the LNG Infrastructure                                Manager—OASE Gas Treating Excellence, BASF SE
                           ExxonMobil Upstream Research Co.                          Daejun Chang, CEO, LATTICE Technology
Session 7                  Pre-Engineered Modular Natural Gas Pretreatment           Innovative Fuel Handling Technology for Medium            Compact Equipment Technology Applications
15:00–15:25                William Shimer, Strategic Marketing Director—             Size LNG-Fuelled Merchant Vessels                         for Floating LNG
                           Gas Processing and Hydrogen, Honeywell, UOP LLC           Mathias Jansson, General Manager, Innovation              Jason Manning, Principal Process Engineer, Black &
                                                                                     & Product Support, Wärtsilä Marine Solutions              Veatch
Session 8                  1100 MMSCFD Single Train AGRU & TGTU for the              Integrated LNG Propulsion Systems for Efficiency:         How to Select the Optimum Liquefaction Technology
15:30–15:55                Giant QatarGas LNG Plant: Optimized Design and            Case Studies Analysis                                     for FLNG Projects
                           Successful Operation                                      Oscar Kallerdahl, Sales Manager—LNG Systems,              Francesco Criminisi, FLNG & FPSO Proposal Manager,
                           Laurent Normand, Business Development Manager,            Rolls-Royce                                               SBM Offshore
                           Prosernat
Closing Remarks            Moderator Closing Remarks                                 Moderator Closing Remarks                                 Moderator Closing Remarks
15:55–16:00                John Sheffield, Consultant Instructor,                    Leo Karistios, Global Gas Technology Market Manager,      Conn Fagan, Vice President, Business Development,
                           PetroSkills | John M. Campbell & Co.                      Lloyd’s Register                                          DNV GL Offshore Gas Projects
16:00–18:00                Prosernat Special Workshop

                                                                                     Gastech Conference Newspaper ■ DAY ONE                                     Tuesday, 27 October 2015                     5
Welcoming the global gas industry to Asia's business epicentre
Triple offset valves in molecular sieve processes
SERGIO CASAROLI and MARCO FERRARA, Pentair Valves & Controls
   The oil and gas industry often uses                      of the trapped molecules while restoring               • High frequency open/close cycles—            1. The shaft is placed behind the plane
molecular sieves to dehydrate or separate                   the sieve adsorption capacity. Adsorption                typically one every four hours, with a           of the sealing surface to ensure a
contaminants from natural gas. Such a pro-                  dryers are typically equipped with two                   maximum of eight each day                        continuous seat path.
cess involves several operational challenges                to four molecular sieve beds, each dedi-               • Frequent thermal cycles—during               2. The shaft is placed to one side of
that put valves under severe strain, poten-                 cated to the adsorption of a single molecu-              regeneration mode, the molecular                 the pipe/valve centerline to allow
tially causing damage and service disrup-                   lar type (water, CO2, mercury, lead, etc.).              sieve is flushed with hot gas,                   the displacement of the seal from
tions. Triple offset valves (TOVs) represent                Water adsorption is a common application                 typically at 350°C. During                       the seat during the 90° opening.
an innovative solution for molecular siev-                  in natural gas treatment plants, refineries              purification mode, it is brought down        3. The seat and seal cone centerlines
ing due to their design and ability to handle               and petrochemical complexes. It utilizes                 to ambient temperature.                          are inclined with respect to the pipe/
extreme conditions. Using TOVs minimizes                    hard, granular adsorbents manufactured                 Gas purification residuals (crushed                valve centerline. This third offset
the need for, and cost of, maintenance,                     in several types of materials, including           adsorbents) are often present in outlet gases          completely eliminates rubbing.
while offering significant footprint reduc-                 aluminosilicates, such as Zeolite, ceramic         and can pass through screens and flow              Pentair Valves & Controls’ Vanessa
tion compared to conventional ball valves.                  materials, activated carbon and silica gels.       through the valves towards downstream           TOV design with a flexible metal seal ring
                                                            They usually have a spherical or cylindri-         lines, causing abrasion of sealing com-         represents an innovative solution to with-
Natural gas molecular sieving                               cal shape and their internal pores allow           ponents and jeopardizing valve integrity.       stand high-frequency open/close cycles.
processes. A large number of dehydra-                       access to free volumes within their micro-         Conversely, whenever membranes are used         Due to the non-rubbing design, wear
tion and purification processes in the oil                  crystalline structure (FIG. 1).                    for CO2 removal without pre-treatment,          between sealing components is completely
and gas industry rely on the adsorption                        Conversely, carbon dioxide (CO 2)               corrosive gases (sour/acid) are present,        eliminated. The whole trim, including
principles of solid bed molecular sieves.                   removal from natural gas (typically not            especially in offshore installations.           bearings and thrust bearing, is designed for
Made from a micro-porous material, their                    pre-treated) is a process often handled                Historically, non-rubbing rising stem       heavy-duty services. To protect equipment
ability to selectively adsorb gases and liq-                by using thin membranes to perform a               (tilting) ball valves have been the standard    from frequent thermal and pressure cycles,
uids makes them widely used across vari-                    solution-diffusion separation (absorp-             used in natural gas molecular sieves. The       Vanessa TOVs’ metal-to-metal sealing, a
ous applications. Smaller diameter fluid                    tion principle). These membranes, typi-            basic design of a ball valve—a ball rotat-      resilient seal ring and torque seating com-
molecules separate from the main feedstock                  cally made with polymers in spiral shapes,         ing on soft sealing surfaces with systematic    pensate different thermal expansion rates
via electrostatic attraction or micro-porosity              allow fluids to dissolve over their surface        rubbing—is enhanced by introducing an           between trim and body, while ensuring
adsorption and remain trapped inside the                    and diffuse through their structure, leaving       additional mechanical device that allows        outstanding tightness and removing the
adsorbent structure.                                        molecules with specific permeation rates           for a tilt/turn operation and a mechanical      risk of valve jamming. Vanessa Series
   After use, molecular sieves are regener-                 trapped inside. With natural gas, the feed         camming action of seating surfaces nearing      30,000 TOVs feature Stellite 21 seat over-
ated with temperature swings and regen-                     gas is separated into a methane (CH4 )-rich        closure. So far, this been the most effective   lays, which offer high resistance to wear
erating gases, which allow full recovery                    stream on the exterior of the membrane             response from the industry to tackle the        generated by the fluid (which may include
                                                            and a CO2-rich stream on its interior. Pres-       issue related to cycle-intensive applica-       particulates released from the sieve vessel).
                                                            sure is the force driving the membrane             tions, such as frequent switching, which        The valves also include an easily replace-
                                                            diffusion, while regeneration processes            would otherwise require recurrent valve         able one-piece metal solid seal ring, proven
                                                            are undertaken via temperature swings              maintenance or replacement.                     across several molecular sieve processes.
                                                            achieved by gas flushed in the opposite                However, rising stem ball valves of            The material selection of each compo-
                                                            direction, seen in FIG. 2.                         larger sizes and pressure classes are           nent offers the best compromise among
                                                               Solid bed and membrane molecular sieve          extremely heavy and have a large footprint,     necessary mechanical properties, corro-
                                                            processes are extremely challenging for            generating a number of direct (material         sion resistance and equivalent expansion
                                                            valve equipment. Both processes use valves         use) and indirect (installation) costs that     coefficient, making Vanessa TOVs suitable
                                                            to perform frequent ON-OFF functions to            engineers must account for during front-        across a wide range of corrosive gases. The
                                                            switch one or more vessels from gas puri-          end engineering design (FEED) project           cost-effective solution enables the use of a
                                                            fication to regeneration modes. Operating          phases. The tilting mechanism itself, a vari-   carbon steel body in a corrosive environ-
      FIG. 1. Internal pores allow access to free           failure can lead to significant plant down-        ant on a standard quarter-turn ball valve,      ment by protecting all surfaces in contact
      volumes within their microcrystalline                 time, product loss, potential environmental        is subject to wear and can degenerate over      with the fluid with corrosion resistant alloy
      structure.                                            pollution and other safety issues.                 time. Although the valve sealing elements       (CRA)-quality weld overlay.
                                                                                                               may not involve rubbing capabilities, fric-
                                                            Critical issues with existing valve                tion is transferred to both the shaft cam       An ongoing trend: replacing
                                                            solutions. Gas purification valves cur-            (towards core pins) and the S-shaped pin        rising stem ball valves with TOVs.
                                                            rently face a number of challenges during          slot. This valve design requires specialized    Rising stem ball valves can be safely sub-
                                                            both molecular sieve processes (FIG. 3):           maintenance, including the use of costly        stituted by TOVs. Footprint and weight sav-
                                                                                                               spare parts, significant time and effort.       ings can be achieved, especially on larger
                                                                                                                                                               diameters (> 6 in.) and pressure classes
                                                                                                               Long-term reliability of non-                   (ASME class 300 and 600), due to lower
                                                                                                               rubbing, metal-to-metal TOVs.                   material use and a more compact body.
                                                                                                               Process designers and plant operators look-     Vanessa Series 30,000 TOVs require min-
                                                                                                               ing for a reliable and cost-effective option    imum maintenance, which can be easily
      FIG. 2. Membrane molecular sieve.                                                                        should consider using a different type of       performed onsite, and their non-rubbing
      Regeneration processes are undertaken                                                                    valve in molecular sieve applications, such     rotation and full metal construction signifi-
      via temperature swings achieved by gas
                                                                                                               as TOVs. They share the same cone-to-           cantly extend the valve life.
      flushed in the opposite direction.
                                                                                                               cone principle as globe valves (FIG. 4),            Pentair’s first experience in molecular
                                                                                                               with one key difference: sealing is per-        sieve applications dates back to 1999, when
                             Regeneration gas cooler
Raw gas
                                                                                                               formed by applying a quarter-turn rotation.     the company provided its Vanessa Series
                                              Open on/
                                                                                                                  Three offsets against the symmetrical        30,000 TOVs to a major end user of off-
                                              off valve                                                        axes of the pipe/valve eliminate any pos-       shore operations in Malaysia. Some of the
                                             Closed on/                                                        sibility of rubbing:                            valves replaced rising stem ball valves for
                                              off valve
                                                                                                                                                               a CO2 membrane system that featured a two
 Adsorbing
(absorbing)                   Regenerating                                                                                                                     to four-hour open/close cycle; those valves
                                column
  column                                                                                                                                                       are still in operation. Hundreds of rising
                                                                                                                                                               stem ball valves have also been replaced in
                                                                                                                                                               gas plants in Mexico in solid bed molecular
                                                Dried gas                                                                                                      sieve applications, and there are many more
     Heater                                                                                                                                                    cases of TOV valve evaluation and adop-
                                                                                                                                                               tion in response to the recommendations by
      FIG. 3. Molecular sieve process                                                                                                                          major molecular sieve process licensors. ■
      schematics. High-frequency open/close
                                                                                                                                                               Visit booth #D450 to experience Pentair
      cycles and frequent thermal cycles are
                                                                                                                                                               Valves & Controls’ capabilities, products
      two challenges faced during molecular                      FIG. 4. Triple offset valve vs. glove valve        FIG. 5. A MOSS-type LNG tanker             and latest innovations for the natural gas
      sieve processes.                                           seating mechanism comparison.                      at berth.                                  and LNG industries.

6         Tuesday, 27 October 2015                                   DAY ONE ■ Gastech Conference Newspaper
Welcoming the global gas industry to Asia's business epicentre
Dresser-Rand eliminates high vibration levels
in gas compressor
   A charge gas compressor train at an ethylene plant was       Data analysis during the machine trip showed high vibra-             “Meeting the project’s extraordinary time constraints
exhibiting high vibration levels in the low-pressure cas-       tion (6.85 mils peak-to-peak) at the 5,220 rpm level, so the      was a result of many different functions working together
ing before crossing first critical speed. These vibration       machine could not operate at speeds above 5,150 rpm. Such         within Dresser-Rand, including our services team in
levels prevented the train from reaching its design operat-     interruptions affected plant operation and resulted in lost       Mexico (sales, proposals, field services, reliability and
ing speed of 5,800 rpm. With only a 45-day window to            production and revenue.                                           predictive maintenance teams); the Houston service cen-
identify the cause of the vibration and fix it, Petroquimica       Internal friction in the low-pressure casing, lack of rigid-   ter; Dresser-Rand turbine technology services in Olean,
Mexicana de Vinilo (PMV) asked Dresser-Rand engineers           ity in the system, train misalignment and process piping          New York; the operations upgrades and parts team; and
to have a look.                                                 were found to be the main causes for vibration. Dresser-          our technical support team in Venezuela,” Moncayo said,
   PMV, a flagship joint venture (JV) between Pemex             Rand engineers also found corrosion in the compressor cas-        adding that the vibrations on the compressor train are now
and Mexican petrochemical firm, Mexichem, represents            ing and in the suction and discharge flanges, a 0.5-in crack      well below 1 mil. ■
the first JV between Pemex and a private company. The           on one of the shaft journals, impeller pitting, and coupling
merger joined Mexichem’s salt, chlorine and caustic soda        gear teeth and spacer flange pitting. Several of the compo-
operations with Pemex’s ethylene and vinyl chloride             nents (installed over the years by third-party parts manufac-
monomer (VCM) operations.                                       turers) were found unsuitable and not within Dresser-Rand
   PMV revamped an old Pemex plant in the Pajaritos             original equipment manufacturer (OEM) dimensions.
petrochemical complex to produce an expected 120 tons              PMV accepted Dresser-Rand’s proposed solutions to
of VCM, the key material used to manufacture polyvinyl          repair the train that included shutting down the train to
chloride (PVC), commonly used for electrical insulation,        inspect and repair internal compressor components; mea-
films and pipes.                                                suring bearing clearances and compressor shaft run-out;
   “Initially, PMV representatives asked us to perform a        inspecting labyrinth seals; aligning the compressor and
vibration analysis on the compressor train—consisting           turbine, and aligning the suction and discharge piping to
of a 3 MX compressor, a 3M compressor and a 4M com-             the compressor flanges; and stiffening the compressor
pressor—to determine possible causes,” said Francisco           supports and discharge lines. Upon inspecting the prox-
Moncayo, Dresser-Rand Services director for Mexico.             imity vibrations system and bearing clearances on the 3M
“The fact that there was no historical data on maintenance      compressor, Dresser-Rand recommended replacing it and
or vibration levels compounded the problem because, in          supplied its OEM parts for the overhaul, capital spare parts
the past, Pemex had sourced third-party, non-Dresser-Rand       and 3MX shafts.
parts and service.”                                                When completed, Dresser-Rand finished the agreed-
   Vibrations affected operations, production and revenue.      upon scope, aligned the train, commissioned it and started
At the outset, the compressor (FIG. 1) was operating at         it within the 45-day deadline. The Houston, Texas service
5,150 rpm. However, increasing the speed to 5,220 rpm           center was able to accommodate other major repairs to the             FIG. 1. The failure to operate at speeds above 5,150 rpm
significantly increased vibration levels, causing the protec-   3M and 3MX rotors in a short time period to avoid longer              affected plant operation and resulted in lost production
tion systems to trip the compressor train and shut it down.     delays to the shutdown.                                               and revenue.

                                                                           Gastech Conference Newspaper ■ DAY ONE                                        Tuesday, 27 October 2015                7
Welcoming the global gas industry to Asia's business epicentre
Pipeline operator upgrades control
for critical compressor operations
   Electricity and natural-gas delivery               Upgrading control systems across the       energy company loses revenue. With con-           pipeline system levels. Accurate reporting
company CenterPoint Energy—Missis-                sizeable Midwest compressor fleet rep-         tracts based on high standards for delivery       of real-time engine events, along with anal-
sippi River Transmission LLC (CNP-                resents an enormous capital undertaking,       reliability, including fines for not moving       ysis tools and management dashboards,
MRT) owns and operates 8,200 mi of US             particularly under a traditional outsourcing   gas as promised, a lack of data-driven vis-       deliver contextual, localized, role-based
transmission pipeline that carries an aver-       model that contracts control design and        ibility prevents being proactive on mainte-       information for better decision making.
age of 1.6 Tcfy of gas throughout a nine-         implementation to multiple engineering         nance, reacting quickly with adjustments,
state, mid-continent region.                      firms and system integrators. Over time,       and efficiently expanding or scaling up.          Categorizing the results. CNP-
   Competing for utility customers against        that approach created a mix of control                                                           MRT has summarized the upgrade returns
other transmission companies and alter-           products and solutions at CNP-MRT, often       Designing a standard upgrade in four key areas.
nate forms of energy requires CNP-MRT             based on black-box proprietary logic.          solution. CNP-MRT used the Horse- 1. Cost of ownership—Design
to leverage technology that minimizes                 The CNP-MRT control and automa-            shoe Lake station to create and prove                   through installation and delivery
operating, maintenance and downtime               tion group saw the company’s Horseshoe         a potential model to cost-efficiently                   of the new system at Horseshoe
costs. Transmission profitability is fur-         Lake compressor station as a test case for     develop, manage and implement a major                   Lake came in well below previous
ther complicated because the throughput-          designing and deploying an internally          control upgrade (FIG. 2). Partnering with               systems. Based on experience with
dependent segment must also accommo-              executed station upgrade. The company          oil and gas specialists from the global                 previous systems, Mr. Starkey
date variables such as demand-reducing            inherited Horseshoe Lake from another          solutions team at Rockwell Automation,                  estimates the capital investment
mild weather, fluctuating gas prices and          entity that specified and built the facil-     CNP-MRT set out to design a solution                    at approximately 20% of the total
regulatory-compliance overhead.                   ity before turning it over to CNP-MRT to       that was specific to Horseshoe Lake, but                for control projects equal in scale.
   Efficiently, reliably and intelligently        operate. The seven-year-old station was        that could also serve as the standard for            2. Simplified HMI configuration—
controlling, automating and monitoring            relatively new, but at the time of construc-   upgrading the rest of its Midwest region’s              Eliminating the need to learn every
the performance of reciprocating engine           tion the original, economically minded         compressor fleet.                                       HMI application from scratch
compressors represents one of the most            systems integrator opted for proprietary          CNP-MRT selected Rockwell Auto-                      cuts training time considerably.
significant challenges in moving the high-        architecture and PLCs already nearing the      mation’s PlantPAx process automation                    With a baseline to work from,
est quantity of natural gas at the lowest         end of their lifespan.                         system to integrate control and informa-                even if a station is different, the
cost. The school bus-sized engines (FIG. 1)           “Relative to the potential of today’s      tion. The system provides vastly improved               in-house control group can make
maintain a pressurized flow (up to 1,500          open architecture, the result was an anti-     asset visibility and production information             modifications to fit nearly every
psi) to reduce gas volume up to 600 times         quated control system,” says Steve Star-       that gives station operators the data nec-              type of engine, significantly
and propel it through a pipeline.                 key, the CNP-MRT instrumentation and           essary to respond faster on maintenance,                reducing integration time.
   Control and automation opportunities to        electronics specialist overseeing the com-     operation and flow-control issues.                   3. Reduced downtime—The
reduce infrastructure maintenance costs,          pany’s Northern pipelines. “In addition,          “The trend in compressor operations is               PlantPAx system has reduced
minimize downtime and leverage real-time          CNP-MRT uses Rockwell Automation               collecting, integrating and using higher                station downtime and the capital
diagnostics are significant. The potential        exclusively and does not support the plat-     amounts of data,” Starkey says. “We                     outlay for repairs. Previously,
capital investment and resource allocation        form that was in use at that facility. So,     are trying to optimize every operational                there were no alarms other than
attached to deploying upgraded control            we could not work on the control system        aspect, in real-time, that contributes to               shutdown. With alarms now
technology across almost 70 transmission-         ourselves without investing a significant      improved uptime, efficiency and profit-                 programmed to catch engine
line compressor units are also vital.             amount of time and money in training.”         ability, including monitoring for unit per-             issues before failure, operators
                                                      Simply adding another step in an           formance, emissions and even the safety                 initiate repairs ahead of engine
Upgrading pipeline compression                    engine startup sequence, for example,          of engines that pump gas and run on gas.”               failure. By watching the data
station control systems. Each com-                required a control vendor to reprogram            The Horseshoe Lake upgrade enables                   remotely, staff can make an
pression station, located at 40 mi to 100-        it at an additional cost for each improve-     station operators to more easily manage                 engine the least available until
mi intervals along a pipeline route, utilizes     ment. Troubleshooting a problem or             speed and load control. The control system              they resolve an issue.
two to 10 compressors in the 2,000-hp             obstacle, particularly in the middle of the    also determines which compressor units               4. Improved operability—The
(1.5-MW) range. The aging systems typi-           night or on a weekend, opens compres-          should start based on engine hours and the              Horseshoe Lake experience
cally found in the energy-delivery space          sor operations to downtime risk. Finally,      number of engines the system controls.                  indicates that operators who are
were built to last: even equipment that           CNP-MRT needed significant improve-               The visualization capabilities within                responsible for their respective
went online in the 1960s can have another         ment in the information solution, from         the PlantPAx system provide a window on                 stations can be confident in most
20 years of life. However, the decades-old        data access, collection and sharing, to        compression by incorporating performance                anything they will be asked to do.
machines are not as efficient as current          real-time remote monitoring and alarm-         metrics and the situational display of pro-             “Previously, there were too many
technologies.                                     ing. An engine that fails means that the       duction information at engine, station and              instances where operators did
                                                                                                                                                         not have control or the necessary
                                                                                                                                                         insight,” Mr. Starkey says. “The
                                                                                                                                                         approach is different now. It is the
                                                                                                                                                         operator’s control system.”
                                                                                                                                                      The PlantPAx solution is the consen-
                                                                                                                                                   sus control and automation model for the
                                                                                                                                                   entire compressor fleet. From the face-
                                                                                                                                                   plates to the look and feel of how the
                                                                                                                                                   control system operates, the design and
                                                                                                                                                   implementation is the CNP-MRT standard
                                                                                                                                                   for upgrading other compressor stations in
                                                                                                                                                   the future. “The PlantPAx system has out-
                                                                                                                                                   performed on every metric, from reliabil-
                                                                                                                                                   ity to scalability and integration of most
                                                                                                                                                   anything we can think of,” Mr. Starkey
                                                                                                                                                   says. The results mentioned here are spe-
                                                                                                                                                   cific to CenterPoint Energy-Mississippi
                                                                                                                                                   River Transmission LLC’s use of Rock-
                                                                                                                                                   well Automation products and services in
                                                                                                                                                   conjunction with other products. Specific
                                                                                                                                                   results may vary. ■
                                                                                                     FIG. 2. The PlantPAx system provides a
                                                                                                                                                   For more information on the company’s latest
                                                                                                     window on compression by incorporating
                                                                                                                                                   extraction, production, processing, regasification,
                                                                                                     performance metrics and the situational
                                                                                                                                                   transmission, distribution, power generation and
     FIG. 1. Each compression station, located at 40-mi to 100-mi intervals along the pipeline       display of production information at
                                                                                                                                                   information technologies, visit D210 to meet the
     route, utilizes two to 10 compressors in the 2,000-hp (1.5-MW) range.                           engine, station and pipeline system levels.
                                                                                                                                                   Rockwell Automation Southeast Asia team.

8     Tuesday, 27 October 2015                              DAY ONE ■ Gastech Conference Newspaper
Welcoming the global gas industry to Asia's business epicentre
Production underway at Air Products’
new manufacturing facility
   The production of LNG entails the cooling of natural        port services, which will facilitate global shipping of the      cess—fabrication, winding, assembly and finishing. The
gas from ambient temperatures to –160°C. This is accom-        extremely large equipment. When production of one of the         qualified workforce consists of craftsmen, including a
plished in specially designed heat exchange equipment,         units is complete, it will head straight out of the finishing    team of skilled welders and fitters, and manufacturing
which is the heart of the LNG facility. Much of the world-     building and travel approximately 1 km along surface roads       support personnel.
wide LNG production incorporates proprietary natural gas       to the deepwater Port of Manatee, where it will be loaded           Air Products has been involved in the LNG market
liquefaction process technology and large coil-wound heat      onto a ship for delivery. There are currently multiple large     since its beginning, providing highly efficient, cost-effec-
exchangers manufactured by Air Products.                       coil-wound heat exchangers in various stages of manufac-         tive process cycles and main cryogenic heat exchange
   To meet customer demand for LNG technology, Air             ture at the Port Manatee facility, with the first expected to    equipment. It provides technology solutions to meet a
Products recently began production of its LNG heat             be completed and ready to ship by autumn of 2016.                wide range of requirements, whether for an onshore or
exchangers (FIG. 1) at a second manufacturing facility            FIG. 2 shows the 30,000-m2 facility, which is built on 13     offshore plant, a small plant or mega train, and for all
in Port Manatee, Florida, in the US. The new facility          hectares (32 acres) of land and will employ a workforce          locations and environments. ■
supplements existing production at Air Products’ facility      of approximately 250 when at full production. The Port
                                                                                                                                Air Products LNG experts will be available for discussions
in Wilkes-Barre, Pennsylvania, where the company has           Manatee facility consists of five buildings, including one       at booth D40 throughout the conference.
designed, manufactured and exported more than 100 coil-        administration and four manufacturing, each designed
wound heat exchangers for LNG projects in 15 countries         for a specific step in the heat exchanger production pro-
over the past 45 years.
   At Port Manatee, the company will be able to supply the
additional capacity required to meet market demand, as
well as manufacture the even larger LNG heat exchangers
that are being demanded by the market.
   A typical Air Products LNG heat exchanger can be as
large as 5 m in diameter, 55 m long, and weigh as much as
500 tons. Air Products’ heat exchangers fabricated at the
Wilkes-Barre facility are typically transported by rail to
the company’s manufacturing annex at the Port of Bucks
County in Pennsylvania, where final fitting and assembly
work are performed. The heat exchangers are then loaded
aboard ships and transported.

Expanded seaport access and streamlined                                                                                              FIG. 2. The 32-acre Port Manatee, Florida facility will allow
delivery. One key advantage to the new LNG equip-                   FIG. 1. A large coil-wound heat exchanger in production          expanded production and easier access to a deepwater
                                                                    at Air Products’ new manufacturing facility.                     seaport for transportation to global customers.
ment production facility in Port Manatee is ready access to

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                                                                          Gastech Conference Newspaper ■ DAY ONE                                         Tuesday, 27 October 2015                9
Welcoming the global gas industry to Asia's business epicentre
Updated practice for LNG bunkering
facilities metering
MARTIN LAYFIELD, DNV GL
   As the international market for small-                     and non-corrosive. Its atmospheric boiling           market for LNG. These various compo-              Gas quality and quantity
scale LNG and bunkering expands glob-                         point is –163°C, hence its cryogenic prop-           sitions of LNG need to be addressed in            metering. Through this update of the
ally, the need for safety and enhanced                        erties. Management of the risks associated           terms of equipment requirements and               RP, DNV GL is the first regulatory body
commercial practices are increasingly                         with LNG continues to be developed, espe-            operating procedures to accommodate               to provide guidance on how to perform
important and are being addressed by DNV                      cially as the fuel supply is not yet widely          appropriate billing (trading) and fuel qual-      quality and quantity metering of LNG
GL through an updated recommended                             carried out on a routine basis. Key differ-          ity demands—based on the energy that the          fuel from bunkering.
practice (RP).                                                ences to traditional marine fuels include the        gas quality actually provides, not just the          The most elementary billing methods
   LNG has proven to be a viable option                       low flashpoint and cryogenic temperature.            quantity by volume and mass—to ensure             that can be applied are based on the vol-
as a bunkering fuel for ships, and its use                       As energy demand grows and the indus-             fair and robust commercial value.                 ume or mass of bunkered LNG. Given
is set to soar over the next decade. LNG                      try looks to monetize the use of gas glob-               Composition is also of great importance       the large spread in the density and in the
bunkering is currently available as a bunker                  ally, another aspect that requires attention         from a safety perspective. The maximum            calorific value among the available LNG
fuel for maritime and inland shipping at                      is the fact that LNG is produced at dif-             filling limits in fuel tanks need to reflect      sources, these methods could result in a
a number of ports across Europe, the US                       ferent locations around the world. This              the LNG properties for potential expansion        substantial variation in energy content of
and especially in Southeast Asia, and infra-                  results in LNG compositions that may vary            to avoid liquid-full tanks and to determine       the bunkered LNG. If the energy content
structure development is being planned in                     substantially with the geographical origin           the performance of engines and turbines.          is not determined, this variation leads to
several ports globally.                                       due to differences in natural gas sources,                                                             an uncertainty in the bunkered energy,
   LNG is odorless, colorless, non-toxic                      production technologies and the target               Updated RP with guidance on                       illustrated in FIG. 2. This uncertainty not
                                                                                                                   metering. To tackle the challenges                only affects billing and taxation, but also
                                                                                                                   that varying LNG compositions present,            impacts the expected voyage distance.
                                                                                                                   DNV GL is now launching an update of                 In addition to transparency regarding
                                                                                                                   the RP on “Development and operation of           the amount of bunkered energy, it is essen-
                                                                                                                   liquefied natural gas bunkering facilities        tial to ensure that the engines to be used
                                                                                                                   (DNVGL-RP-0006)” to help the industry             in LNG-fueled ships are matched with
                                                                                                                   maximize the commercial value for fuel            the expected variations in fuel composi-
                                                                                                                   suppliers by de-risking fuel use for the cus-     tion (fitness for purpose). Consequently,
                                                                                                                   tomer. There is no international standard         variations in composition can cause varia-
                                                                                                                   that determines classification and speci-         tions in engine performance. Specifically,
                                                                                                                   fication for LNG as a marine fuel, nor is         the engine knock resistance of the fuel
                                                                                                                   there any required metering methodology.          must be determined unambiguously. An
                                                                                                                      The RP has been established with the           engine failure at sea will have significant
                                                                                                                   aim of supporting the industry in the             financial ramifications. The occurrence
                                                                                                                   development and operation of safe LNG             of engine knock leads to significant loss
                                                                                                                   bunkering facilities, achieving compliance        of performance (power reduction), engine
                                                                                                                   with regulatory targets, and ensuring the         damage and shutdown. Loss of propulsion
                                                                                                                   safety of personnel and protection of the         and maneuverability can also cause cata-
                                                                                                                   environment. It focuses on four main ele-         strophic consequences, such as collision,
                                                                                                                   ments: safe design and operation; safety          grounding and foundering. Furthermore,
                                                                                                                   management systems; risk assessment;              the “boil-off” of the volatile components
     FIG. 1. Small-scale LNG value chain.                                                                          and, for the first time, coverage on gas          in the stored LNG leads to a change in
                                                                                                                   quality and metering. The RP bridges the          composition, which decreases the knock
                                                                                                                   gap between the ISO/TS 18683—which,               resistance of the stored LNG over time.
      Mass flow
                                  Volume                           Pressure and                Composition         by its very nature, is generic—and site-
     measurement
                               measurement
                            (static or dynamic)
                                                                   temperature
                                                                   measurement
                                                                                               measurement         specific regulations like port regulations,       Risk management. As LNG is a haz-
                                                                                                                   terminal procedures and operating proce-          ardous substance—by its nature it has
                                                                                                                   dures (OP) for LNG bunkering.                     different risk properties than traditional
                                                                                                                      The scope of the guideline covers all          fuel—the RP also provides in-depth guid-
                                                     Volume                          Density                       activities and stakeholders involved in           ance on risk management during devel-
                                                                                                                   the development and operation of such             opment and operation of LNG bunker-
                                                                                                                   facilities (FIG. 1). It also addresses the risk   ing facilities, such as safety management
                                                                                                                   evaluations that may be used for strategic        systems and the use of risk assessment
                                  Mass                             Calorific value                                 considerations in the planning phase of an        techniques. The updated RP elaborates
                                                                                                                   LNG bunkering facility project. The RP is         further on how to establish proper safety
                                                                                                                   applicable to truck-to-ship, terminal-to-         zones, including RPs on techniques and
                                                  Energy content                                  Methane number   ship and ship-to-ship bunkering scenarios,        risk methodologies
                                                                                                                   as well as vessels covered by the Interna-           More broadly, there is also a need to
     FIG. 2. Parameters and characteristics for determining energy content (DNVGL-RP-0006).                        tional Maritime Organization (IMO) regu-          enhance the understanding of the risks
                                                                                                                   lations, including inland shipping.               and hazards in small-scale LNG. As such,
                                                                                                                                                                     DNV GL has also launched a joint indus-
                                                                                                                                                                     try project (JIP) to assess the capabilities
  PETRONAS TO EXPORT CANADIAN GAS VIA PACIFIC NORTHWEST LNG                                                                                                          of hazard tools and to demonstrate the
                                                                                                                                                                     consequences of credible failure scenarios
     Malaysian energy company Petroliam Nasional Bhd. (Petronas) has renewed its pledge to proceed with its $28-B Canadian                                           at small-scale LNG bunkering stations.
  natural gas export project. The company is developing the LNG shipping terminal on the nation’s Pacific Coast—pending approval                                     The aim of the JIP is to fill the gaps in
  from Canadian Environmental Assessment Agency regulators—despite the current market volatility for oil and gas. As of early                                        knowledge by providing experimen-
  October, this is the only Canadian proposal to issue an investment decision. Other owners of the venture are Indian Oil Corp.,                                     tal data to validate and improve physi-
  Japan Petroleum Exploration Co., China Petroleum & Chemical Corp., and Brunei National Petroleum Co.                                                               cal models, and to answer the still-open
     Analysts have expressed doubts about Canada’s ability to deliver LNG export projects. With new ventures beginning in Australia                                  safety related questions. This will result in
  and the US, the global market is entering a period of oversupply. Demand in Asia is slowing just as the oil slump has taken down                                   rigorous standards for safe design, siting,
  prices for LNG. There are 20 projects now under consideration for export from the Pacific Coast in British Columbia, and none                                      construction and operation of small-scale
  have begun construction.                                                                                                                                           LNG bunkering stations. ■
     Canada and East Africa are lagging behind the rest of the world’s LNG producing regions. The dramatic drop in oil prices means
                                                                                                                                                                     For more information on this updated
  that only approximately 170 MMcmd (6 Bcfd) of LNG exports will be developed in North America by 2022, according to CIBC                                            recommended practice, and to speak
  World Markets—about half the amount forecast last year. ■                                                                                                          with the members of the DNV GL team,
                                                                                                                                                                     visit us at #B510b.

10      Tuesday, 27 October 2015                                           DAY ONE ■ Gastech Conference Newspaper
Modeling logistics operations before
committing significant capital
JAVIER VAZQUEZ-ESPARRAGOZA and CHRIS CASWELL, KBR
   Logistics simulation provides users with     ine the logistics plan against the project         nance, currents and weather into account.     tions like weather delays, tidal conditions
the opportunity to quantify and visualize       schedule. More specific scope includes:            FIG. 3 shows a screen capture for an LNG      and waves, marine traffic, loading and
how their logistics intensive projects will        • Matching freight delivery plans               storage and shipping study; the animated      unloading capacity, unplanned shutdown
be executed prior to actual project capital          with the construction schedule,               model includes the liquefaction terminal,     time and maintenance.
commitment. A discrete simulation-based              considering constraints of ports,             multiple receiving terminals, tanks and
approach tackles storage, loading, trans-            vessel, barge, rail and trucks                vessels. By optimizing the shipping and       Solids handling: If you move it,
portation and critical delivery operations         • Ensuring the civil infrastructure             storage logistics of LNG facilities, KBR      you should model it. Discrete mod-
to balance the capacity for material move-           in place can handle the labor and             can reduce capital costs by not overinvest-   els can accurately simulate product con-
ments against risk, unforeseen events and            freight traffic loads                         ing in marine and logistics infrastructure.   veyance and storage; and the loading of
the overall project schedule.                      • Predicting laydown space                                                                    pelletized materials and other solids prod-
   Generally, discrete simulation models             requirements                                  Oil movement and tankage:                     ucts, including sulfur/coke handling facil-
are powerful tools, supporting decision            • Identifying risks and contingency             Study the transportation of any               ities from sulfur pastillators/coke drums to
making in both strategic and operational             plans during the planning process.            product. Simulation models test the           truck or conveyor systems. These models
levels during logistics planning and exe-          Four examples of applications for               size of tank farms and the shipping sched-    detail and analyze operations to ensure
cution. For example, FIGS. 1 and 2 show         KBR’s logistics simulation experience              ule under various uncertain constraints.      these facilities are adequately sized and
a screen capture of a simulation model          are listed here.                                   The study also evaluates production           will not interrupt day-to-day operations.
animation to determine the construction                                                            performance of the blends and verifies
sequence for a modular designed proj-           Construction logistics: Timing is                  the material movements through tanks             KBR's Logistics Simulation allows
ect, detailing the delivery and execution       everything. A freight profile and model            against the schedule of different ship-       clients to visualize detailed elements of
sequence for the construction modules           are developed to examine the supply chain          ment modes and the utilization of critical    their projects using a discrete simula-
and large equipment installation. The           capacity of civil infrastructure, ensuring         facilities. A refinery model developed to     tion-based approach that analyzes criti-
installation sequence needs to be as flex-      that the planned freight arrivals can be           estimate the number of receiving crude        cal delivery operations such as storage,
ible as possible to allow the release of        accommodated in different construction             tanks; the number of product tanks; the       loading and transportation. These models
productive work at the jobsite, while           phases. A simulation-based module and              storage capacity needed for solids and        allow clients to review EPC risk, conse-
maintaining the highest safety standards        heavy-lift sequencer are also built to test        other products from the refinery; and         quences from unforeseen events, and test
(i.e. incident and injury free). Logistics      the module delivery feasibility. The fea-          the size and number of vessels needed         the overall project schedule in the areas
models can be used to:                          sibility of the freight delivery profile and       to run the refinery import and export         of supply chain management and traffic
   • Obtain a realistic understanding           schedule are analyzed and verified. A              under normal operations is illustrated in     management. ■
      of the operating characteristics          logistics simulation of the project’s supply       FIG. 4. The number of berths and berth        For more information, please visit the KBR
      of a system                               chain accompanies each major EPC effort.           utilization is also estimated. These stud-    Gastech exhibition at #C160 to discuss your
   • Evaluate performance of supply             FIG. 2 shows a picture of a 3D model used          ies include modeling of constraint situa-     engineering needs with our team.
      chain under a series of plans             to demonstrate the results of a module
      (material delivery, construction          sequence construction study.
      and inventory policy) by
      considering various complex               LNG shipping and storage: Don’t
      and uncertain factors                     overinvest in marine infrastruc-
   • Supplement schedule risk                   ture. Simulation models are built to
      management of EPC projects                determine the number of tanks, optimal
   • Proactively identify potential             tank size and marine berth occupancies to                       Introducing the

                                                                                                                US GAS PROCESSING
      bottlenecks and opportunities             ensure these facilities do not restrict the
   • Effectively suggest optimal                continuous liquefaction process. The LNG
      solutions for achieving best              vessel fleet size is also optimized, tak-
      business interests.
   Logistics operations can be simulated
                                                ing trip times, destinations, ship mainte-
                                                                                                                PLANT DIRECTORY
from the project level down to the detail of
material handling activities at a single hub.                                                                   500+ Plants with Information about Name,
“What-if analysis” is performed to exam-                                                                        Capacity, Plant Scope and Detail, and Owner/
                                                                                                                Operator Information.
                                                                                                                Gain the market knowledge to grow your
                                                                                                                business and inform your decisions in the
                                                                                                                booming United States gas market. $1,195 per
                                                                                                                edition. Searchable, digital format. Group rates
                                                     FIG. 3. Sizing tanks and loading vessels
                                                                                                                and site licenses are available.
                                                     fleet, including the liquefaction terminal,
     FIG. 1. A KBR construction module
     sequence simulation.
                                                     multiple receiving terminals, tanks
                                                     and vessels.
                                                                                                                Order online at GulfPub.com/GPPD
                                                                                                                or call + 1 (713) 525-4626.

                                                                                                                             US GAS
                                                                                                                             PROCESSING
                                                                                                                             PLANT
                                                     FIG. 4. A refinery model can estimate
                                                     the number of receiving crude tanks                                     DIRECTORY
                                                     and product tanks, and the storage
     FIG. 2. A screen capture of a simulation        capacity needed for solids and other
     model animation.                                products from the refinery.

                                                                              Gastech Conference Newspaper ■ DAY ONE                                    Tuesday, 27 October 2015               11
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