OFF-THE-SHELF MID-SMALL-MINI-SCALE LNG PLANT CASE STUDYFOR APPLICATION Yoshihisa Wakamatsu Deputy Manager, LNG Project Department International Project Division Shin Matsui Executive Officer, LNG Project Department International Project Division Yoshio Yatsuhashi Technical Advisor, LNG & Offshore Department Global Marketing Division JGC Corporation 2-3-1, Minato Mirai, Nishi-ku Yokohama 220-6001, Japan http://www.jgc.co.jp/ wakamatsu.yoshihisa@jgc.co.jp ABSTRACT Standard design engineering packages for Mid-small-mini Scale LNG Plant, having 0.1 1.5 million tons per year production capacity, were developed focusing on compact, pre-assembled and short LNG plant delivery for the development of mid-small gas fields less than 5 TCF. LNG demand is increasing and timely LNG supply is required, especially for power generation in Japan after the earthquake in 2011. It takes relatively long time to make the final investment decision (FID) for base-load LNG projects due to the huge total investment and stepwise approach: Feasibility Study, Pre-FEED, FEED, Bid, FID, and EPC. The off-the-shelf LNG design packages can contribute to achieve earlier LNG delivery. In addition to the conventional usage for power generation and utilities, there is a new trend in LNG usage as transportation fuel for trucks, trains, and ships, instead of diesel oil. Further, natural gas resources have become more diversified with the shale gas and coal seam gas. The off-the-shelf Mid-small-mini Scale LNG Plant can provide various optimum solutions with value-added ideas for realization of LNG projects based on JGC standard design engineering packages. The plant design concept is Reliable operation, Cost competitiveness and Fast track. This paper gives three conceptual case studies of Mid-small-mini Scale LNG Plant application: (1) Phased Development, (2) LNG Carrier Direct Loading and (3) Mini LNG for Transportation Fuel. 1. INTRODUCTION LNG demand is increasing and timely LNG supply is required, especially for power generation in Japan after the earthquake in 2011. Standard design engineering packages for Mid-small-mini Scale LNG Plant, having 0.1 1.5 million tons per year production capacity, were developed focusing on compact, pre-assembled, and short delivery LNG plants for the development of mid-small gas fields less than 5 TCF. The plant design concept is Reliable operation, Cost competitiveness and Fast track adopting proven/marketable processes and equipment based on optimized modular design. This paper gives three conceptual case 1
studies of Mid-small-mini Scale LNG Plant application: (1) Phased Development, (2) LNG Carrier Direct Loading, and (3) Mini LNG for Transportation Fuel. 2. BACKGROUND OF DEVELOPMENT 2-1. Project Schedule It takes relatively long time to make the final investment decision (FID) for base-load LNG projects due to the huge total investment and stepwise approach: Feasibility Study, Pre-FEED, FEED, Cost Estimate (including Bid), FID, and EPC. Figure-1 shows the typical schedule for base-load LNG projects. Especially, the duration of Pre-FEED and FEED sometimes takes a few years. As EPC bid starts after FEED completion ( A Project ), the timing of Final Investment Decision (FID) is assumed to be in Year 4 at the earliest. Dual FEED including the EPC cost estimate ( B Project ) gives slightly shorter project duration to FID. Figure-1: Typical Schedule for Base Load LNG Projects The off-the-shelf LNG design packages contribute to achieving earlier FID and LNG delivery as shown in Figure-2 by greatly reducing the pre-epc project phases. As the standard design engineering package includes a complete set of engineering deliverables, such as Process and Instrument Diagrams (P&IDs), once the site selection is done by Owner, it takes 9 months from the planning start to submission of the cost estimate for FID. The actual LNG production is calculated based on the standardized design using the actual feed gas composition and site data to be given by Owner. 2
Figure-2: Expected Schedule for Off-the-shelf Mid-small-mini Scale LNG Plant 2-2. New Trend in LNG Usage In addition to the conventional usage for power generation and utilities, there is a new trend in LNG usage as transportation fuel for trucks, trains, and ships, instead of diesel and heavy oil as shown in Figure-3. Figure-3: New Trend of LNG Usage From the environmental view point, carbon dioxide emissions of transportation are more than 20% of total emissions, and Sox/NOx emission regulations are being reinforced in Emission Control Areas (ECA) as shown in Figure-4. These facts are promoting the LNG usage for transportation fuel as substitution for the conventional oils. 3
Figure-4: Environmental Aspect for LNG Usage as Transportation Fuel The off-the-shelf Mini LNG plants having 0.1 0.3 million tons per year production capacity can be applied to supply of LNG fuel network. 2-3. Diversification of Gas Resources Natural gas resources have become more diversified with the addition of huge reserves of unconventional natural gas, such as shale gas, coal seam gas, and tight-sand gas. Figure-5: Possible Reserves Increase Figure-5 shows the possible reserves increase considering conventional natural gas and shale gas. For the purpose of this paper, the off-the-shelf LNG design packages take the lean gas characteristics of shale gas or coal seam gas into consideration. 4
3. CONCEPTUAL CASE STUDY FOR APPLICATION In order to demonstrate the advantage of the off-the-shelf LNG production models, this paper gives three conceptual case studies of Mid-small-mini Scale LNG Plant application: (1) Phased Development, (2) LNG Carrier Direct Loading and (3) Mini LNG for Transportation Fuel as shown in Figure-6. Figure-6: Conceptual Study Cases for Application 3-1. Phased Development Case-1 Mid-small LNG plant concept can be applied to the development of mid-small size gas fields. Study basis for Phased Development (Case-1) is shown in Table-1. As the natural gas reserves are assumed to be approximately 4 TCF, LNG production capacity may be set within a range of 3 to 3.5 million tons per year (MTPA). The overall concept for the project development is shown in Figure-7. One approach is to conduct the specific development work as Pre-FEED and FEED to optimize the plant capacity to meet the subject gas field size. Another approach is Phased Development adopting the off-the-shelf LNG plant, for example 3 trains of 1.0 MTPA as fast truck project execution. As 1.0 MTPA is the name plate capacity, the actual LNG production is calculated based on the standard design engineering package using the actual feed gas composition and site conditions like the meteorological data. 5
Table-1: Case-1 Study Basis for Phased Development Figure-7: Overall Concept for Project Development Figure-8 shows 1.0 MTPA LNG plant model consisting of equipment modules of process units and main piperack modules. The design concept of the optimum modularization was studied and developed. 6
Figure-8: 1.0 MTPA LNG Plant Model Figure-9: Project Schedule for Phased Development As shown in Figure-9, the first LNG production commences within Year 4 after the planning starts as fast track. The phased development is flexible (intervals between trains) and it depends on Owner s investment plan. As an example, Figure-9 shows 6 month interval between trains. For comparison and reference, a typical project schedule of conventional development like 3.0 MTPA is indicated in Figure-9. It may take approximately 7 years to commence LNG production at the earliest. The 3 rd train may be optional and the timing of construction is flexible depending on Owner s plan. 7
The proposed phased development should be one of the practical solution and the big advantage is fast track project realization with the earliest and timely LNG production. 3-2. LNG Carrier Direct Loading Case-2 Study basis for LNG Carrier Direct Loading (Case-2) is shown in Table-2. Due to availability of feed gas for this study, LNG production nominal capacity is selected to be 0.5 MTPA. In Mid-small LNG plant, the cost of the LNG storage tank, is one of the biggest portion of the total investment compared with a normal size base-load LNG plant, for example 5.0 MTPA LNG production capacity. Therefore, to minimize the cost of the off-site facilities, a drastically new approach was studied, i.e. eliminating the LNG storage tank and directly loading LNG from the rundown line into the LNG carrier. The plant location is assumed to be west coast of Canada. The LNG production calculated based on the lean feed gas from the existing pipeline is 0.56 MTPA, corresponding JGC s 0.5 MTPA LNG model. Table-2: Case-2 Study Basis for LNG Carrier Direct Loading Figure-10 shows the overall plot plan for LNG carrier direct loading. The sea shore of the site is steep enough to construct an LNG jetty with the minimum length of the trestle. Figure-11 shows 0.5 MTPA LNG plant model of the process train on a basis of module fabrication design. 8
Figure-10: Overall Plot Plan LNG Carrier Direct Loading Figure-11: Plot Plan LNG Train 9
It is assumed that two used BGT LNG carriers of 125,000 m3 are owned by Owner instead of the investment of new LNG storage tank construction so that the demurrage cost may not be considered. Two shuttle carriers are utilized for direct loading and transportation to final destination, for example Asian region. The carriers when loading will also function as storage. LNG loading method is shown in Figure-12. To replace the loaded carrier with the next shuttle carrier, 3 days interval is considered using LNG buffer tank having 5,000 m3 storage volume. The LNG loading duration of each shuttle carrier is estimated to be 33 days including berth/departure time for LNG loading weight of 55,000 tons. The loading duration corresponds to the average sailing period, for example 29 days between Canada and Japan. It should be the optimum for this application. Figure-12: LNG Loading Method The approach of the LNG carrier direct loading should have an advantage of the first investment cost reduction based on the overall CAPEX/OPEX evaluation. 3-3. Mini LNG for Transportation Fuel As mentioned before, there is a new trend in the LNG usage as transportation fuel for trucks, trains, and ships. Study basis for Mini LNG for Transportation Fuel (Case-3) is shown in Table-3. The multi Mini LNG plants are built for distribution to LNG stations in inland area of the subject country. It is assumed that the feed gas is supplied from the existing pipeline and the locations of Mini LNG plants are close to end users. The concept of Mini LNG for transportation fuel is shown in Figure-13. One Mini LNG plant having 0.25 MTPA production capacity covers certain area to deliver LNG to LNG stations by tank lorry. This LNG production corresponds to 200 tank lorries per day to the LNG stations and LNG supply to 5,000 trucks per day at the stations. 10
Table-3: Case-3 Study Basis for Mini LNG for Transportation Fuel Figure-13: Mini LNG Concept for Transportation Fuel Figure-14: Mini LNG Conceptual Layout 11
Figure-14 shows the Mini LNG conceptual layout of 0.25 MTPA model for truck LNG loading. The Mini LNG plant is designed on a modular basis to optimize the module sizes taking the module transportation on road into consideration depending on the locations of site and fabrication. Figure-15: Mini LNG Conceptual Layout (0.5 MTPA) For reference, Figure-15 shows the layout of 0.5 MTPA model for ship LNG loading being applied to alternative fuel of ships. The key of Mini LNG concept is design one, build many. 4. SUMMARY AND CONCLUSION Recently, plans of LNG projects are increasing in number due to the increased demand of LNG in the world. It takes relatively long time to make the final investment decision (FID) for base-load LNG projects due to the huge total investment and stepwise approach. For the materialization of the project, speedy approach to develop the plant concept and estimate the investment cost. On the other hand, there is a new trend in LNG usage as transportation fuel for trucks, trains, and ships from the environmental view point. Natural gas resources have become more diversified with the addition of huge reserves of unconventional natural gas, such as shale gas, coal seam gas, and tight-sand gas. The off-the-shelf Mid-small-mini Scale LNG Plant can provide various optimum solutions with value-added ideas for realization of LNG projects based on its standard design engineering packages. JGC believes that its plant design concept of Reliable operation, Cost competitiveness and Fast track will greatly contribute to the realization of Mid-small-mini Scale LNG Plant projects for the development of mid-small gas fields less than 5 TCF and the unconventional natural gas. 12