p07 room 2-_habibie_razak_-_indonesia_-managing_the_construction_of_lng_projects
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Managing the Construction of LNG ProjectsTRANSCRIPT
Managing the Construction of LNG Projects
Presented byHABIBIE RAZAK, P. ENG., AERProject Manager, Oil & Gas
Black & Veatch International
Presented forCAFEO 30
Phnom Penh, 19 December 2012
SOLVING THE WORLD’SCOMPLEX CHALLENGES
BLACK & VEATCH CORPORATIONIS A LEADING GLOBAL ENGINEERING,CONSULTING AND CONSTRUCTIONCOMPANY
• Founded in 1915
• Global workforce over 9,500• More than 100 offices worldwide
• Projects in more than100 countries on 6 continents
• $2.6 billion in annual revenues in2011
• Employee-owned corporation
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Black & Veatch Corporate Profile
•One of Leading EPC Contractors, US Based Company.•Our Mission sets the bar high - Building a World of Difference ®..•We specialize in these major markets:
Energy Water
Telecommunications Federal
Management Consulting•Forbes Magazine "500 Largest Private Companies in the United States."•Ranked by Engineering News-Record as the industry’s No. 1 design firm
in both Power and Telecommunications and are consistently in the Top 10in Water.
•Leaders in more than 20 categories among design firms, contractors andenvironmental companies worldwide.•Further information please click www.bv.com
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Black & Veatch; Energy Division
• Black & Veatch service offerings include:1. Conceptual and preliminary engineering
2. Procurement3. Engineering design
4. Management consulting5. Construction
6. Asset management7. Environmental consulting
8. Security design and consulting•Servicing from power generation, power delivery, and oil and gas facilities,
we cover the entire range of energy needs.• We work closely with clients to deliver solutions to their most complex
projects through our commitment to execution excellence, quality andintegrity of service.
• Black & Veatch Oil & Gas Services Ammonia/Fertilizers
Gas Processing Gasification
4 LNG Sulfur Recovery
Liquefied Natural Gas (LNG) Overview• LNG is liquefied natural gas which is condensed to -162 degree Celsius• LNG is 1/600 times of volume from natural gas. Gas is changed to LNG for
easy transportation.
In this today’s global energy need, LNG/LNG Plants are used and built forseveral applications
• Substitution of diesel. In China and Japan, trucks and buses are currentlyusing LNG
• Natural gas used for power station gas fuel supply• Gas/LNG can be used for domestic need such as cooking, heating, etc
• Becoming alternative fuel cleaner (green energy) and in some countriesLNG is becoming cheaper than diesel (fossil fuel)
• Especially for medium to small-scale LNG Plants are advantageous becausetheir compact size enables the production of LNG close to the location
where it will be used. This proximity decreases transportation and LNGproduct cost for consumers
• The medium to small-scale LNG Plant also allows localized peak-shaving tooccur - balancing the availability of natural gas during the high and low
period of demand.5
How LNG Plant Works
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How LNG Plant Works
Inlet Feed Gas Pipeline
Pretreatment Process (CO2 Removal,Dehydration & Mercury Removal)
Liquefaction Process
LNG Storage
LNG Loading and Transportation
Mixed Refrigerant Make-up
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Black & Veatch PRICO® LNG Liquefaction Technology• Black & Veatch provides mix refrigerant technology called as PRICO® - Poly
Refrigerant Integrated Cycle Operation process.• A single mixed refrigerant loop to accomplish the gas liquefaction with a
refrigerant that is a mixture of nitrogen and hydrocarbons ranging from methaneto iso-pentane.
• By using a SMR all equipment items associated with heat exchange refrigerationloops (cascade process) or two loops as in the propane pre-cooled or double
refrigerant processes are eliminated.
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Why Clients Chose PRICO® Mixed RefrigerantLiquefaction LNG Technology
PRICO® offers many advantages to clients which are a direct result of our globalleadership in design and constructing LNG facilities:
• Unsurpassed proven performance in small, mid and large scale facilities• Guaranteed performance in support of client LNG business model
• Optimized LNG production• Optimized utility consumption
• Simplified operations• Maximum flexibility to handle changes in feed gas
• High reliability• Low cost - no proprietary equipment
• Fewer pieces of equipment compared to competing technologies• Rapid start-up to full production
• Unsurpassed training• Full complement of lump sum EPC services with proven track record
• Single point lump sum responsibility and accountability• Strong balance sheet supported by over 10,000 dedicated global professionals
Figure 3 9LNG Plant Process Flow Diagram
BLACK & VEATCH - 50 YEARS OF LNGLEADERSHIP
Proven PRICO® Technology - Global EPC delivery• B&V’s patent PRICO® Single MixedRefrigerant technology
• 23 global plants in operation• 15 plants in construction
• Simplified operations = compact plant• Applied across broad range of sizes
• Short startup time to production• Cost competitive solution
• Black & Veatch’s Global EPC experiencedelivering sustainable solutions
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EXMAR EXPORT Floating LNG Project
• Black & Veatch has been a pioneer in the LNG industry since the 1960sand will provide engineering and procurement for topside liquefactionequipment and packages (FLSRU) using its patented PRICO® LNGtechnology. Black & Veatch will also provide on-site commissioning and
start-up services.• Once the EXPORT™ has been built, it will be towed from China toColombia where it will be owned and operated by EXMAR for PacificRubiales Energy Corporation. The EXPORT™ will be located off the
coast of Colombia. It will begin production at the end of 2014 giving thecountry greater access to global LNG import and export markets.
• Wison Offshore & Marine Ltd (Wison) will deliver the overall EPCI andcommissioning to EXMAR. Headquartered in Shanghai, Wison willconstruct the facility through its wholly-owned fabrication facility in
Nantong, China.• A global Black & Veatch team working from offices in several countries
will be supporting Wison on this project.
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FIRST FLRSU
7th Annual Asia LNG October 2012
1212
EXMAR EXPORT Floating LNG Project
There are several advantages building offshore LNG liquefaction as follows:• To provide viable solutions that enable the entire LNG processing value
chain to be based offshore closer to production wellheads. This is asmarter, faster way to gain market access over similar, previouslyproposed projects and it can be redeployed rapidly to other fieldlocations when required.
• Limited need for land acquisition, no need of land and building permitwhich are sometimes complicated, free from community disturbance
during project execution because all pretreatment and liquefactioncomponents are fabricated in vendor’s workshop and brought to sea for
complete installation.• Reduce the need for onshore LNG storage with LNG tanks located in the
hull with additional capacity of support a host of LNG storage vessels toship large cargoes• Reduced jetty construction and impact to the local shore lines
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CHINA LNG PLANTSWuhai #1
Wuhai #2
Black & Veatch Sep 2012
Erdos Qianyuan
XinjiangSyngas
Lanzhou
Guang’yuan
Guang’an
Hongxing
CHINADazhou
Tianjin
Bazhou
Yuanheng
Xilan
Xingyuan
CNOOC 14
LNG Plants in China
Figure 5Cold Box (Refrigerant Exchanger)
Figure 6LNG Storage Tank
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LNG Plants in China
Guangyuan LNG Plant
Office and Electrical Building
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Project Execution Strategy
Black and Veatch can provide total Engineering,Procurement and Construction (EPC) for all projects. We
work with local contractors to execute the construction ledby B&V construction management team including toprovide all pre-commissioning, commissioning an start-up
services to hand over a complete operating facility
Engineering StageB & V provides the engineering work start with Front EndEngineering Design (FEED) to Detailed Engineering Design
(DED) for whole packages consist of:• Process Engineering
• Rotating and piping engineering• Electrical engineering
• Instrument & control engineering• Civil & Structural Engineering
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Project Execution Strategy
Procurement StageTypical LNG plant major equipment and materials are procured from
and contracted to several vendors/contractor managed by ProjectManager of Black & Veatch consists of:
• The Brazed Aluminum Heat Exchanger (Cold-box) supplied bymultiple qualified vendors;• The Refrigerant Compressor complete with gearbox and driver
supplied as a package from qualified vendors having experience inhandling mixed refrigerant components including technical fieldassistance during installation and commissioning;
• BOG Compressor, Regeneration Gas Compressor and/or RecycleGas Compressor globally sourced from qualified suppliers.
• Dehydration, Amine Treating Package supplied by packagersdelivering pre-assembled skids including technical field assistance
during installation and commissioning;
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Project Execution StrategyProcurement Stage (Continued)
• Carbon steel & stainless steel pressure vessels for exchangers,condensers and any associated drums supplied and fabricated byrespective vendors. Preferred to go with local fabricators subject to
vendor surveillance conducted by B&V procurement and constructionteam.
• Piping bulk material including carbon & stainless steel pipe and fittingssupplied by certified manufacturers as per the international standardsand codes such as ASME, ANSI, etc.
• Valves and other special cryogenic special materials by trusted certifiedmanufacturers as per the international standards & codes.
• All utility systems such as demineralization package, nitrogen package,flares, emergency power, consumable storage, instrument air, office,
DCS system supplied by different vendors/manufacturers.• Qualified local or national construction contractors & subcontractors to
provide services for civil, concrete, structures, buildings, mechanical,electrical, instrumentation and control, fire protection system for
whole LNG plant facilities.
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Project Execution StrategyEPC Project Responsibilities
Black & Veatch manages the entire scope as the EPC contractor tocoordinate the design, procurement and construction performed by
Black & Veatch and its partners, including all suppliers and contractorswho are working for project. A typical project would include the
following:• Review the design package from each vendor and identify the
interface and the interconnections among them. Project managerto ensure there are no missed item.
• Manage and coordinate with Black & Veatch constructionmanagement team during project construction, commissioning and
start-up stage.• Management of subcontractors and suppliers to ensure that all
work is completed to the specification as required by Black &Veatch and meets all HSE requirements.
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Project Execution StrategyEPC Project Responsibilities (Continued)
Black & Veatch manages the entire scope as the EPC contractor tocoordinate the design, procurement and construction performed byBlack & Veatch and its partners, including all suppliers and contractors
who are working for project. A typical project would include thefollowing:
• Management of projects to meet planned schedules and within theagreed financial budgets.• Ensure financial controls are in place and provide reporting via the
project controls officer that reflects the status of each cost centerunder project manager’s control.
• Complete reviews of projects to ensure engineering, riskmanagement, QA/QC are all being attained and kept at the highest
standard.• Procure major equipments to ensure all those equipments are
complying with standards and specifications.
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Project Execution StrategyProject Organization Chart
Project Owner/Client
Project Manager
Engineering
•Process Engineers
Civil/Structural Engineers
Piping Engineers
Mechanical Engineers
Electrical Engineers
Instruments and Controls
Procurement
•Procurement services
•Purchase orders
•Vendor Qualification
•Expediting
•Traffic and logistics
Construction
Site
Management,
QA/QCNational/Local Contractor
Local Procurement
Commissioning and Startup
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Project Execution StrategyWORK BREAKDOWN STRUCTURE (WBS)
WBS is a deliverable oriented hierarchical decomposition of the work tobe executed by project team to accomplish the project objectives andcreate the required deliverables. The WBS organizes and defines the
total scope of the project. The WBS subdivides the project work intosmaller, manageable pieces of work, with each descending level of the
WBS representing an increasingly detailed definition of the projectwork. Project manager needs to provide the WBS due to some reasons:
o Provides a framework for organizing and managing the approvedproject scopeo Helps to ensure that we have defined all the work that makes upthe projecto Provides a framework for planning and controlling cost andschedule informationo It’s better to be deliberate about planning than rely on luck
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Project Execution StrategyWORK BREAKDOWN STRUCTURE (WBS)
No WORK BREAKDOWN STRUCTURE1 INLET GAS COMPRESSION
1.1. Construct inlet gas compressor foundation1.2. Assembly and install inlet gas compressor, complete with motor, gear-box, and related components1.3. Install inlet gas filter/coalescer1.4. Install inlet gas compressor discharge cooler1.5. Install pipelines, valves, fitting and other related accessories within the system1.6. Install all electrical and instrumentation consist of earthing cables and accessories, electrical cables, field instrument, complete2 AMINE TREATING PACKAGE
2.1. Install HP natural gas/coalescer2.2. Install slop Tank2.3. Install contactor feed/effluent exchanger2.4. Install amine storage tank2.5. Install amine contactor2.6. Install amine flash tank2.7. Install lean amine charcoal filter2.8. Install lean amine filter2.9. Install amine circulation pumps
2.10. Install amine cooler2.11. Install amine make-up pump2.12. Install amine sump2.13. Install amine cooler2.14. Install amine sump pump2.15. Install amine stripper2.16. Install rich/lean exchanger2.17. Install amine KO drum2.18. Install stripper reflux condenser2.19. Install amine booster pumps2.20. Install stripper reflux pumps2.21. Install stripper reflux drum2.22. Install lean amine surge tank2.23. Install amine reboiler2.24. Install steam boiler2.25. Install all piping, valves, fitting, entire amine treating package, complete
Install all electrical and instrumentation consist of earthing cables and accessories, electrical cables, field instrument, 242.26.
complete
Project Execution StrategyWORK BREAKDOWN STRUCTURE (WBS)
3 DEHYDRATION SYSTEM3.1. Install mol sieve filter/separator3.2. Install dehydrators3.2. Install dust filters3.3. Install regeneration gas cooler3.4. Install regeneration gas separator3.5. Install mercury removal vessel3.6. Install carbon dust filters3.7. Install dehydration water carbon filter3.8. Install regeneration gas heater3.9. Install all piping, valves, fitting entire dehydration package, complete
3.10. Install all electrical and instrumentation consist of earthing cables and accessories, electrical cables, field instrument, complete
4 LIQUEFACTION SYSTEM4.1. Install refrigerant suction drum4.2. Install refrigerant compressor complete with gear-box, and gas turbine/motor4.3. Install refrigerant compressor inter-stage cooler4.4. Install inter-stage KO drum4.5. Install inter-stage refrigerant pump4.6. Install refrigerant condenser4.7. Install refrigerant discharge separator4.8. Install refrigerant pumps4.9. Install refrigerant exchanger
4.10. Install LP heavies exchanger4.11. Install HP heavies exchanger4.12. Install start-up exchanger4.13. Install heavies separator4.14. Install hydrogen flash drum4.15. Install hydrogen flash heater4.16. Install nitrogen flash drum4.17. Install nitrogen flash heater4.18. Construct LNG impoundment basin4.19. Install all piping, valves, fitting entire liquefaction system, complete
Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field instrument,4.20.complete
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Project Execution StrategyWORK BREAKDOWN STRUCTURE (WBS)
55.1.5.2.5.3.5.4.5.5.5.6.5.7.5.8.5.9.
5.10.
66.1.6.2.6.3.6.4.6.5.6.6.6.7.6.86.9
6.10.6.11.
6.12.
77.1.7.2.7.3.7.4.7.5.7.6.7.7
7.8
REFRIGERANT MAKE-UPInstall refrigerant storage tankInstall ethylene storage tank
Install propane unloading pumpInstall propane storage tankInstall propane drying bed
Install iso-pentane unloading pumpInstall iso-pentane storage tankInstall iso-pentane drying bed
Install all piping, valves, fitting and instrumentation devices entire refrigeration make-up system, completeInstall all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field instrument,
completeBOIL-OFF GAS COMPRESSION
Install BOG reheat exchangerInstall BOG exchanger
Install BOG compressor oil coalescerInstall BOG compressor oil filter
Install BOG compressorInstall BOG compressor discharge cooler
Install BOG compressor oil separatorInstall BOG compressor oil pump
Install BOG compressor discharge oil filterInstall BOG compressor oil coalescer
Install all piping, valves, fitting and instrumentation devices entire boil off gas compression, completeInstall all electrical and instrumentation, consist of earthing cables and accessories, electrical cables,field instrument,
completeREGEN GAS COMPRESSOR
Install recycle gas separatorInstall regeneration gas compressor suction scrubber
Install heavies tankInstall regeneration gas compressor coolerInstall regeneration gas compressor inter-stage coolersInstall regeneration gas compressor inter-stage separators
Install all piping, valves, fitting and instrumentation devices entire regeneration gas compressor, completeInstall all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, fieldinstrument, complete
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Project Execution StrategyWORK BREAKDOWN STRUCTURE (WBS)
8. FLARE SYSTEM8.1. Construct LNG storage tank, complete with foundations, bunding, structural steelwork, etc
8.2. Install LNG send-out pumps3.3. Install flare knock-out drum8.4. Install warm flare knock-out drum8.5. Install flare KO drum heater8.6. Install flare tip8.7. Install warm flare tip8.8. Install flare stack
8.9. Install all piping, valves, fitting and instrumentation devices entire flare system, complete
8.10. Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field instrument, complete
9. UTILITY SYSTEM9.1. Install make-up water pump9.2. Install make-up water treating9.3. Construct and install cooling tower, complete9.4. Install instrument air package9.5. Install nitrogen package9.6. Install liquid nitrogen package
9.7.
9.8.
9.9.9.10.
9.11
10.10.1.10.2.10.3.10.4.10.5.
Install fire protection system such as pumps (diesel, electric and jockey), hydrants, fire water pipe-line, deluge system, alarmsystem, etc.
Install electrical distribution system such as switch-gear, transformers, circuit breakers, switchyard, etc
Install analyzer systemInstall DCS and run all instrument and control cables entire the LNG plant
Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field instrument for wholeutility system, complete
BUILDINGSConstruct compressors building complete with overhead crane installation, etc.Construct DCS/Centralized control room building
Construct electrical switch room buildingConstruct analyzer building
Construct office facilities, complete
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Project Execution StrategyWORK BREAKDOWN STRUCTURE (WBS)
11. TRANSFER SYSTEM
11.1. Construct jetty structures
11.2. Construct LNG loading point system
11.3. Construct access road entire LNG plant, LNG tank and LNG jetty area
11.4 Install all piping, valves, fitting and instrumentation devices entire transfer system, complete
Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field instrument for11.5 whole transfer system, complete
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Conclusion• LNG is becoming competitively to displace oil to decouple cost of
benchmark crude pricing indices. LNG is preferred cleaner fuel in thehydrocarbon mix since it is environmentally friendly (green energy
campaign).• By using one refrigeration loop, start-up, operation, and shutdown of
sequential system is eliminated. The PRICO® process offers the lowestequipment content (lowest cost) of all technologies and the simplicity of asingle operating refrigeration system(technical and economical
perspectives).• The construction duration of the LNG plant using PRICO® technology can be
done in fast way and shorten the duration of the construction since Black& Veatch has the proper standard layout for each types of LNG Plants
starting from base-load to peak-shaving types.• Black & Veatch with PRICO®technology can be easily managing the project
in a proper manner specifically in the development of work breakdownstructure(WBS) for each project because all equipment used in theprojects are typical as project manager can easily refer to previousprojects.
• Black & Veatch is experienced and capable to undertake lump sum EPCservices with proven track record.
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