Driving Innovation in Oil & Gas: The LNG Futures Facility & Industry 4.0 Testlab for Digital Interoperability

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1 Driving Innovation in Oil & Gas: The LNG Futures Facility & Industry 4.0 Testlab for Digital Interoperability Professor Eric F. May Chevron Chair in Gas Process Engineering Conference on Polish & Australian Technology and Innovation in the Resource and Energy Sectors Sydney 21 st August 2018

2 ARC Centre NERA Consortium ARC ITTC awarded in May 2015 Launched in April 2016 NERA Living Lab Feasibility Study LNG Futures Facility Phases 1 & 2 $9 million over 5 years - 11 Projects 2

3 Scaling Up Research & Development Challenging of scale up from the lab to the real world Flow Assurance Cryogenic Fluids Gas Separations Micron - Scale Bench - Scale Pilot - Scale API & DNV Recommended Practice for Technology Qualification Technology Readiness Levels (TRL) 0 to 7 Valley of Death: TRL-3 to TRL-4 No accessible, live environment exists for demonstrating new technologies & processes at industrial scale Result: barrier to innovation & technology adoption in the LNG industry 3

4 LNG Futures Facility: Concept Small-scale LNG Train Slipstream facilities Small-scale train provides convenient access to full range of gas conditions from feed to LNG storage Slipstream facilities provide relevant fluids for technology demonstration of New sensors (e.g. heavy HC freezing) New operations (e.g. membranes + molecular sieves for amine-free plant) Slipstream facilities allow introduction and disposal of impurities as required for testing at all stages More & better instrumentation than industrial plants to ensure maximum data quality & rich data sets: Qualify Industry 4.0 technologies including digital twins 4

5 LNG Futures Facility Industrial Scale LNG Research & Demonstration 5

6 Location: Kwinana Industrial Area Location: Kwinana Industrial Area, 25 km south of Perth. National Facility open to companies & researchers across Australia & the World 67% of Australian gas located off WA; over 800 global & local energy, petroleum, equipment, technology & service companies based in Perth Sites A or B: up to 10,000 m2 adjacent to major gas pipeline DampierBunbury Natural Gas Pipeline PERTH, WESTERN AUSTRALIA KWINANA BULK TERMINAL INDUSTRIAL AREA 6

7 Overall Project Plan From Concept to Final Investment Decision to Operating Facility No Description Party Start Finish #### 18-Q1 #### #### 18-Q2 #### #### 18-Q3 #### #### 18-Q4 #### #### 19-Q1 #### #### 19-Q2 #### #### 19-Q3 #### #### 19-Q4 #### #### 20-Q1 #### #### 20-Q2 #### #### 20-Q3 #### #### 20-Q4 #### 1 Phase 1 Concept Definition & Pre-FEED Consortium Lead 01/01/18 30/09/ Phase 2 Decision Making Consortium All 01/10/18 31/12/ Phase 2 Front-End Engineering Design Consortium Lead 01/01/19 30/06/ Phases 3-5 Final Investment Decision Consortium All 01/07/19 30/09/ Phase 3 Engineering EPC Contractor 01/10/19 31/12/ Phase 3 Procurement EPC Contractor 01/10/19 30/06/ Phase 4 Balance of Plant EPC Contractor 01/01/20 30/06/ Phase 4 Module Installation EPC Contractor 01/07/20 30/09/ Phase 5 Commissioning EPC Contractor 01/10/20 31/12/ Phase 5 Handover Consortium All 01/10/20 31/12/ Phase 1 Kick-Off Phase 2 Decision FID Handover Phase 1: Concept Definition & Pre-FEED 9 months Stage gate Phase 2: FEED 6 months Final Investment Decision (FID) Phases 3 to 5 15 months NERA Living Lab Feasibility Study Engineering, Procurement, Construction, Commissioning, Handover CRC 50% Gov t Funding 7

8 Long term Business Model: CRCs Australian Centre for LNG Futures Cooperative Research Centres (CRCs) funded by Department of Industry appears to be a compatible model for Phase 3 & beyond LNG Futures CRC would be an incorporated company, initially funded for 10 years: 50% government & 50% by industry partners Current average cash funding is $40 million per CRC Business model: tiered membership with annual payments 8

9 LNG Futures CRC: Structure & possible research programs Australian Centre for LNG Futures 9

10 Industry 4.0 Testlab Engagement with PM s Taskforce & Siemens LNG FF featured in PM s Industry 4.0 Taskforce report: Industry 4.0 Testlabs in Australia Proposed Testlab resulted in Siemens Australia s to grant UWA specialized software valued at $447 million to enable digital twins of LNG FF. Senator Cash co-announced $5 million fund to support the development of five Testlabs utilising digital twins. Working with OPAF & AMIRA to establish a Energy, Resources & Digital Interoperability Testlab do deliver tests of new digital infrastructure. 10

11 Industry 4.0 for Resources Sector Digital Operability for Advanced Process Control Current DCS architecture OPA reference architecture Proprietary hardware, interfaces and networks Vendor-controlled software access Security not intrinsic: bolted-on, not built in Industry standard interfaces and networks Interoperable hardware Open software access Designed-in security Images courtesy of 11

12 Digital Interoperability Testlab Testing Industry 4.0 Technologies for the Energy & Resources Sector Digital Interoperability I4.0 Lab Embedded security model ISA-99 Cloud (AWS) Level 2, Level 3 I4.0 Modules MOM 4.0 DIGITAL TWINS 4.0 ANALYTICS 4.0 Lab - Automated Test Software Solution On Premises UWA Level 3 I4.0 Modules Level 3 ESB (TIBCO) Level 2 Message Bus (RTI) Level 1,2 Systems PROCESS CONTROL 4.0 LNG Operator Data Feeds Mine Operator Data Feeds MACHINE 4.0 LNG Futures Facility/Physical Plant 12

13 Testlab Partnerships & Network Extending into the Resources Sector with AMIRA METS IGNITED $ GMG $ Mining Use Cases DII&S I4.0 Labs $ Mining Use Cases $ SMTAFE UWA I4.0 LAB UWA Lab R&D, Trial Use Cases I4.0 Technology Tech OEMS Lessons Learned I4.0 Standards & Compliance test cases XoM OPAF Lab LNG & Mining Companies $ LNG + Mining Use Cases UWA Lab R&D, Trial Use Cases AMIRA P1208 LNG + Mining Use Cases Standards Development OPAF NERA $ Standards Technology OEM R&D and Innovation Team access 13

14 Conclusions With support from NERA, Chevron, Shell, & Hyundai Heavy Industries, working to establish unique, open-access R&D infrastructure in Australia for global oil & gas industry: LNG Futures Facility Currently in pre-feed: Concept Select Facilities Study by Clough now underway CRC Application planned for 2019 Working with OPAF & AMIRA to establish a Energy, Resources & Digital Interoperability Testlab to deliver tests of new I4.0 infrastructure for Process Industries Potentially combine Testlab & Futures Facility to benefit broader Resources Sector Discussions with Polskie LNG & Gaz-Systems regarding their participation in both the LNG Futures Facility & Testlab 14

15 THANK YOU lngfutures.edu.au

16 Base Case: Gas Conditioning Amine plant & molecular sieve dehydration specified by Consortium BDV PSV BDV PSV warm vent KO drum PC amine plant (AGRU) atm. S mol. sieve dehydration (TSA) DBNGP/EVOL pressure reduction flow metering start-up FG mixing drum recycle/feed compressor PC slipstream forcing valve warm vent FG electric heater slipstream forcing valve warm vent S mercury guard bed slipstream forcing valve warm vent isolation valve electric heater contaminant injection contaminant injection contaminant injection Sweetening R&D Dehydration R&D Rich Liq. R&D Gas conditioning can be isolated from liquefaction section & operated in recycle Direct electric heating of amine & regeneration gas Candidate slipstreams marked in yellow 16

17 isolation valve PC mixing drum N2 purge HHC vaporiser HHC storage cold box S SMR compression train contaminant injection slipstream forcing valve cold vent Lean Liq. R&D contaminant injection slipstream forcing valve cold vent N 2 -rich LNG R&D contaminant injection S N2 rejection slipstream forcing valve cold vent N 2 -free LNG R&D PC PC S LNG storage primary FG HHC FG amine plant FG start-up FG PBU PC VAP. RETURN LNG vaporiser gas engine generator LNG LOADING S Base Case: Liquefaction Australian Centre for LNG Futures SMR refrigeration cycle, specified by consortium Liquefaction can be isolated & regasified LNG and HHC recycled to front of liquefaction stage LNG can be regasified & recycled to front of train Gas engine generator for site power, including electric compressor drive & direct electric heating in gas conditioning Fuel gas sources: end flash; HHC; amine flash gas; LNG train feed gas (for start up) Throttling valves in main process stream provide slipstream pressure drop Fuel Gas Mixing Drum 17

18 Training Practical training co-designed with Industry. Completely new training capability: no training facility that uses live fluids exists. Holistic training: end-to-end scenario: treatment, liquefaction, storage, regasification, power generation. Training for the next generation of Operators, Engineers & Contractors. OPERATORS: an ageing workforce and ongoing growth in the LNG sector will result in a shortage of trained operating personnel (estimated at 3000 operators in the next ten years). ENGINEERS: work experience, remote control capabilities for integration into course work MAINTENANCE CONTRACTORS: training and preparation for scheduled plant shutdowns LIVE PLANT DATA FOR OFF-SITE TRAINING: business model not limited to bodies on site - international market through access to live data 18

19 Prospective Research Themes Research Themes 1-3 of 6 Gas Separation Technology Novel material development & advanced separation processes Synergistic Operations: compact footprint dehydration, acid gas & nitrogen removal Combined gas processing operations to eliminate process units Mercury capture materials and sensors Helium capture for additional product streams Cryogenic Fluids & Refrigerants Avoiding solids deposition & maximising production Prevention and remediation of BTEX freeze out Demonstration of new, online sensors in live plant environment Novel refrigerants, optimised refrigerant blends and improved liquefaction cycles LNG Storage Systems New and improved LNG storage and transportation Demonstration of new storage systems e.g. matrix pressure vessels Demonstration of new LNG transfer piping systems; validation of meters Verification of heat transfer data in storage systems Minimisation of Boil Off Gas & LNG rollover prevention 19

20 Prospective Research Themes Themes 4-6 of 6 Data Analytics Predictive analytics and open datasets Demonstration and functional testing of real-time data monitoring and analysis platforms Demonstration of automated plant response (e.g. correction to process upsets) Open datasets & case studies for education and research Enhanced, fuller datasets through high density instrumentation Validation of scale-up models from laboratory to plant Digital Twin for operations optimisation Robotics & Automation Live test environment for robotics Demonstration of ROVs for maintenance and inspection Demonstration of other advanced robotics (non-invasive inspection) Testing de-manning and remote operations strategies Accelerated Life-cycles Frequent start up and shutdown scenarios Demonstration of improved abnormal operation e.g. shutdown, blow down, relief & restart Demonstration of new unit operations, instrumentation and sensors Qualification of new chemicals and new construction materials e.g. invar pipework Validation of process intensified equipment e.g. 3D printed equipment 20

21 Phase 1: Contractor Facilities Study Deliverables A ±30 % capital cost estimate, including Basis of Estimate Phase 2 FEED scope of work and schedule Australian Centre for LNG Futures Basis of Design, and Functional Specifications for process plant, balance of plant and infrastructure Recommendation of technology licensors for process plant PFD s, P&ID s, heat and mass balances, and process simulation Process and utilities design data including equipment and piping size BOM and equipment list, highlighting long lead items Drawings showing facility location, facility layout, and other site plans required for planning approval Regulatory approvals plan, highlighting long lead activities HSE assessment, including manning profile 21