capturing an opportunity - fakultet for … conferences...lean lng tank 6. feed and epc contracting...

Slide No: 13 April 2005

Capturing an OpportunityCapturing an Opportunity-- NGL Recovery from RasGas LNG Train 4 NGL Recovery from RasGas LNG Train 4 --

Presented by Douglas C. Smith

Co-authored by Brett L. Ryberg


Background


Presentation Outline

� Opportunity

� Incentives

� Project Design Basis and Scope

� Execution Plan

� NGL Recovery Process Selection

� LNG Train Modifications

� Conclusions


The Opportunity

1. Train 4 committed LNG sales could accommodate a

leaner product

2. Plot space & utilities available for NGL recovery as

a result of Acid Gas Injection on LNG Train 4

3. Ability to share in Al Khaleej Gas Project fractionation, LPG treating, and LPG storage &

loading facilities


The Opportunity

Former SRU

Location

Sub-Station

Gas Receiving &Condensate Stabilization

Acid Gas Removal

RefrigerantPrep

Liquefaction and RefrigerationN2 Rejection

& Helium Recovery

Sub-station

Liquefaction and RefrigerationDehydration & Regeneration

Gas Treating

Instrument House

Train 4 Process Area - Base Layout

NGL

Recovery

Sub-Station

Gas Receiving &Condensate Stabilization

Acid Gas Removal

RefrigerantPrep

Liquefaction and RefrigerationN2 Rejection

& Helium Recovery

Sub-station

Liquefaction and RefrigerationDehydration & Regeneration

Gas Treating

Instrument

House

Train 4 Process Area - Opportunity


Incentives

1. Ability to produce both “rich” and “lean” LNG products

opens new markets• “Lean” LNG compatible with Western markets

• “Lean” LNG able to access US East Coast

terminals, with better net pricing and lower shipping costs than US Gulf Coast

2. LPG products are higher value (“net back” basis) than LNG

3. Increased condensate production

4. Net result is a significant revenue boost, particularly if LNG production can be maintained despite NGL

recovery


950 1000 1050 1100 1150 1200

Btu / SCF

RG Tr 4 w/

C3+ Recovery

RG Tr 1 / 2 / 3

UK and USA

India

(Petronet)

Continental

Europe

Asia

Incentives

New Market

Opportunities

Comparison of Typical LNG Product Specifications


Project Scope

1. Method for recovery of NGLs

2. Modifications to Train 4 as required

3. New LNG rundown for lean LNG

4. New lean LNG storage and product loading

manifolds


Original Train 4 Scope Unchanged

AKG Scope

Modified Train 4 Scope for NGL Extraction

New Train 4 NGL Extraction Scope

Block Flow Diagram - LNG Train 4 NGL Recovery

AGE / AGI

INLET FACILITIES

ACID GAS REMOVAL

GAS DEHYDRATION

MERCURY REMOVAL

OFFSHORE

CONDENSATESTORAGE

RICH LNG

LIQUEFACTION

AKG Fractionation

Plant

LEAN LNG

NGL RECOVERY

AKG LPG Storage & Loading

NGL

LPG´s


Execution Plan

1. Feasibility & marketing studies

2. Process selection studies by competing suppliers

3. Unit re-rating studies by various technology

providers to identify necessary changes

4. Definition / implementation of changes via Change

Orders to EPC Contract

5. Procurement of long-lead turbomachinery & new

lean LNG tank

6. FEED and EPC contracting


Execution Plan - Strategies

1. NGL Recovery facilities designed to minimize changes to Train 4

• Preserve Train 4 EPC lump sum pricing

• Manage Train 4 schedule risk

2. Priority given to earliest practical definition & implementation of Train 4 changes

3. Use existing EPC contractor for EPC of NGL Recovery facilities

• Minimize interferences with existing activities

4. Provisions for future C2 recovery

5. Construction planned & being executed to minimize work required after LNG Train 4 start-up


Execution Plan - Schedule

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Feasibility / Conceptual Studies

Process Screening

FEED

LNG 4 Rating and Modification Eng

Lean LNG Tank

EPC

Cooldown

Residue Gas Compressor Procurement

NGL Recovery Facilities EPC

Commissioning

AKG-1 Onplot

RasGas Expansion Projects

Train 4 NGL

2006

AKG-1 Offplot

Projects2004 20052002 2003

LNG Train 4

1st LNG

1st GAS

1st LPG

1st NGL


NGL Recovery Process Selection

Key decision parameters:

1. Impact on Train 4 schedule

2. Impact on Train 4 liquefaction capacity

3. Impact on Train 4 availability

4. LPG recovery efficiency

5. Ability to accommodate future C2 recovery

6. Cost & schedule


M

Residue

Gas

Feed

Gas

LPG

GE Frame 5

EC

Selected NGL Recovery Process Schematic (Ortloff)


LNG Train Modifications

1. Train 4 facilities modifications to increase

throughput to compensate for feed gas shrinkage:

a. Inlet facilities

b. Condensate handling

c. Gas treating

2. Modifications to liquefaction & other units to

accommodate leaner feed stream

3. New facilities for storage & loading of lean LNG

product:

a. Additional lean LNG rundown piping

b. Additional LNG storage tank and inlet manifold

c. Product loading manifolds


Lean LNG / C3 Recovery Mode Schematic

RefrigerantPreparation Unit

NGL Extraction Equipment Al Khaleej Gas

LPG Fractionation, Treating, Storage,

& Loading

G

M

M

End Flash Gas Exchanger

Fuel Gas Compressorw/ AFD Motor & Drive

(Increased Power)

Residue Gas CompressorFr 5 D Turbine andVFD Helper Motor

Hydraulic Turbine / Generator

w/ Excess Flow

Bypass

LNG RundownPump

N2 RejectionFlash Drum

NGL Extraction Unit

NNF

Excess C3/C4 NNF

ScrubColumn

Excess C3/C4 Refrigerant

MixedRefrigerant

(Tubes Reratedfor Higher Pressure)

M

C

H

E

Mixed LPG

- 41 degC

66.4BarA

- 33 degC

57 BarA

TreatedGas

RefrigerantMake-Up

Fuel Gas

LNG to Storage

Excess C2

(Changed from

Trays to Packing)


Project Status

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

CONSTRUCTION

(Incl. Tank # 5)

2003 2004 2005 2006

ENGINEERING

PROCUREMENT

97%

94%

46%

MA

NGL

MA LNGTank# 5

31 Dec 31 Jan


Conclusions

1. Production of lean LNG provides RasGas with new

market opportunities

• LNG to growing UK and US markets

• New LPG products

• Increased condensate production

2. LPG recovery can be incorporated without impact on guaranteed LNG production rate (BTU / hr basis)

3. Significant change successfully introduced into a lump sum project to enhance shareholder value

capturing an opportunity - fakultet for … conferences...lean lng tank 6. feed and epc contracting...

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