Asset Management Services

Rotating Equipment Performance & ConditionMonitoring including Emissions Reporting

Germanischer Lloyd Service/Product Description

Contents

Service Description and Values Generated

Detailed Method Statement

Performance Monitoring Solutions

Emissions Reporting

Condition Monitoring Solutions

Case Studies and Examples

Case Study - Performance Monitoring

Case Study - Emissions Reporting

Case Study - Condition Monitoring

Pages 3 - 5

Pages 6 - 8

a:

b:

c:

Pages 9 - 11

a:

b:

c:

Rotating Equipment Performance& Condition Monitoring includingEmissions Reporting

Service Title: Asset Management Services

Lead Practice: GL Asset Management - Cogsys (UK)

Germanischer Lloyd Service/Product Description

2

Service Descriptionand Values Generated:

Increased global demand for energy and pressure on supplies of oiland gas has created the need to optimise plant operations, ensurehigh availability and increase throughput. At the same time climatechange and clean air legislation has created additional pressure onowners of process plant and rotating equipment.

From a maintenance perspective the last decade has seen a growth ofindependent service companies that challenge the traditionalrelationship between original equipment manufacturers andOperators. Also, condition-based maintenance practices arerecognised as mechanisms to increase plant availability.

Germanischer Lloyd (GL) provide technical solutions and product toOwners & Operators of rotating equipment and process plant, ourexperience includes:

Industrial Gas Turbines

Aero-derivative Gas Turbines

Electricity Generators

Pipeline / Injection Compressors

Pipeline / Injection Pumps

Gearboxes

Heaters / Boilers

Steam Turbines

Electric Motors

Fans

Blowers

GL engineers quickly and effectively diagnose equipment faults orreduced performance and have considerable experience implementingfit-for-purpose cost effective solutions for:

Improving the Performance, Reliability and Efficiency ofrotating equipment

Stationary combustion source Emissions monitoring andreporting

Protection and Condition Monitoring solutions includingtechnology from Vibro-Meter

3

SERVICE DESCRIPTION

GL is independent of original equipment manufacturers and we addvalue to our Clients business in the following areas:

Improving Reliability & Availability. Understandinghow best to operate equipment and avoid operatingoutside favourable conditions improves uptime (e.g. highavailability and reliability). This can be critical particularlywith offshore O&G production where in-built redundancyis expensive and failure of a single machine can result inlarge production losses.

Reducing Costs. Effective management of operatingcosts requires knowledge of current efficiencies andenergy usage. High energy prices mean that equipmentmay be operated in ways for which they were notoriginally designed. Operational efficiency and equipmentoptimisation are the main factors in managing energyusage and GL solutions support informed decisions tooptimise performance in the most energy-efficient way.

Capacity Enhancement. In regions such as the MiddleEast there is pressure to increase oil & gas productionand/or pipeline throughput to satisfy increased demand.GL support Operators with the investigation, analysis andimplementation of capacity enhancement programs.

Key Discipline Support. Industry downsizing hasresulted in fewer staff being located at oil, gas and powerfacilities. GL solutions enable remaining experts andspecialists to remotely monitor and troubleshootproblems from anywhere in the world using the Internet.

Performance Tracking. Performance limitations have adirect effect on operating costs and the productionoutput. GL online performance monitoring solutionsprovide continuous tracking of equipment condition,which enables corrective action when degradation isdetected.

4

SERVICE DESCRIPTION

Emissions Compliance. GL emissions monitoringsolutions are field-proven and recognised as anacceptable and verifiable method of determining andreporting combustion plant emissions such as NOx, CO,O2, SO2, CO2 and unburned hydrocarbons.

Emissions Trading. Emissions trading requirescombustion plant Operators to monitor and report theirCO2 (and sometimes NOx) emissions against theirGovernment-allocated allowance. GL solutions providerobust and verifiable methods of determining and report-ing these emissions.

Condition Monitoring. The experienced application ofmachine condition monitoring increases reliability byproviding early warning of developing problems, beforethese becomes critical and expensive. GL engineersevaluate existing / obsolete condition monitoring systems,design & commission new solutions and provide static &dynamic vibration analysis of rotating and reciprocatingequipment.

Machine Protection. GL design, build and commissionprotection systems for high-value critical rotatingequipment. Our experts provide turnkey monitoring anddiagnostic solutions that protect critical plant and assets.

5

SERVICE DESCRIPTION

a. Performance Monitoring Solutions

GL performance monitoring solutions for rotating equipment utilisemeasurements from existing instruments that are available from theequipment/site control system. Performance calculations are basedon site tests and a performance monitoring system generally includes:

Online performance monitoring

Decision support & diagnostic tools

Reference to the fuel specification

Corrections to ISO conditions and equipment-specificfactors

Performance calculations for thermal efficiency andpower output

Relationship of fuel gas path performance parametersand power output

Performance correction factors calculated online tocorrect power output, heat rate, calculated exhaust flow& temperature

Client-supplied equipment design data can be used to generatecorrection factors such as:

Measured ambient temperature, atmospheric pressure &humidity

Generator efficiency

Measured air inlet pressure drop

Measured exhaust pressure drop

Degradation / Ageing

Turbine speed

The system continuously tracks and reports equipment changes topredict potential problems and performance issues before these occure.g. off-condition detection for water washing, loss of power due tofaulty guide vane position or change in fuel gas quality. This usesbaselines fingerprints, of measured parameters across a range ofnormal operating conditions, to establish a healthy datum and thetracking of deviations in performance or condition. Baselines arecreated using manufacturer data or site tests, where the equipmentis tested across the full operating range by experienced performanceengineers.

Experienced GL engineers can also determine the performance ofexisting equipment or the effects of engine up-rating, repair orcompressor re-wheel / re-bundling. Results can be used to assessmanufacturer guarantees, assist site operations, support accuratemodelling and provide data to assess any degradation inperformance. GL equipment validation and 3rd party witness testingis to recognised industry standards, (including API & ASME Power TestCodes) and includes:

Independent technical assistance and mechanical healthchecks during the supply of new or zero-rated rotatingmachinery

Supervision of start-up and compliance withspecifications and standards

Gas turbine performance testing

Compressor performance testing including compressormapping

Onset-of-surge testing of compressors to enableanti-surge controller optimisation

Compressor throughput optimisation

6

DETAILED METHOD STATEMENT

b. Emissions Reporting

GL emissions monitoring and reporting solutions are field-proven ona wide range of combustion plant. Emissions to air from gas turbines,heaters & boilers have a direct correlation with operation of thecombustion plant e.g. load, firing temperature, fuel flow & quality, allof which can be reliably and accurately measured by standardpackage instrumentation. Calibrated emissions models utilisemeasurements from existing instruments already available in theequipment / site control system and calculate, display, trend & reportthe emissions of NOx, CO, O2, SO2, CO2 & unburned hydrocarbons.Multiple gas turbines combustion systems are accommodatedincluding Standard Annular Combustion (SAC), Dry Low NOx (DLN)and steam / water injection. The GL method has been operationalsince 1996, when the UK environmental regulator granted approvalto this reporting solution, which has now been implemented as a BestAvailable Technique (BAT) for European and Middle East IntegratedPollution Prevention & Control (IPPC) emissions compliance reporting.

The key benefits of the GL solution are:

Recognised by regulatory authorities as a cost effectiveBest Available Technology (BAT)

Can be applied to both new equipment and as a retrofitto existing equipment

Lower capital cost than the installation of in-stackmonitoring technology that consist of an exhaust gasextraction/sampling system, gas analysers and calibrationgases

More reliable than in-stack monitoring technology,providing better repeatability and overall uncertainty

Reduced routine maintenance and lower operational costthan in-stack monitoring technology, which require daily/ weekly calibration checks and incur high call-out andreplacement costs

Only requires calibration to satisfy local environmentalregulations and following major maintenance e.g. hotsection overhaul

Automatically generates warnings and only requiresperiodic user supervision

Automatic emissions reporting to meet local operationsand environmental regulations

Calculates emissions across the entire operating range,including NOx reduction technologies

Can be configured with redundancy (i.e. backup modelsusing alternative engine parameters) to continuecalculating emissions if input signals to the primary modelfail

GL has extensive experience and an impressive track-record in thespecification, engineering design, system build, installation, testing,commissioning and ongoing technical support of emissionsreporting systems and our engineers also undertake independentemissions studies, testing and on-site validation.

7

DETAILED METHOD STATEMENT

c. Condition Monitoring Solutions

GL condition monitoring and machine protection solutions includethe monitoring and analysis of rotating equipment vibration,temperature, pressure, speed, acceleration etc. Our products andsystems comprise the following advanced technology fromVibro-Meter SA of Switzerland:

Machine protection systems

Vibration transducers and measurement systems fordisplacement, velocity and acceleration

Dynamic pressure measurement systems for gas turbinecombustion acoustic sensing

Temperature, pressure and flow measurement systems

Cables, connectors, junction boxes, galvanic isolators andsignal conditioners

Electronic interface modules

Dynamic data analysis software tools

GL condition monitoring engineers will evaluate existing conditionmonitoring & protection systems and specify the requirements toreplace obsolete systems. GL will also design, build and commissionturnkey systems that provide static & dynamic condition monitoring& protection of rotating equipment.

GL experts provide tailored monitoring and diagnostic services tominimise the high-cost of unplanned shutdowns. GL provide bothonsite and remote healthcare services to evaluate dynamic behaviourand mechanical failures including:

Vibration investigations including the analysis of signalfrequency components

Diagnostic support, consultancy & studies

In-situ trim balancing

Training on vibration instruments and monitoring

3rd Party witness testing and validation

Start-up testing

Set-up & implementation of condition monitoringsystems

Fault diagnosis using portable and permanently installedequipment

Remote surveillance of condition and performance

GL also work with Client-nominated specialist suppliers that provideintegrated machinery healthcare, overhaul, maintenance and repairservices.

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DETAILED METHOD STATEMENT

a. Case Study - Performance Monitoring

Date: 2003Customer: Green StreamSavings: Advanced decision support and contract tracking

The Mellitah Gas Compressor Station, part of the Western Libyan GasProject, provides compression for the Trans-Mediterranean pipelinefrom Libya to Italy. GE Oil & Gas supplied the equipment packageincluding 4 x Frame 5D gas turbine-driven centrifugal compressortrains, inter-coolers, after-coolers and waste heat recovery steamgeneration. The Client, Green Stream - a joint venture betweenAgip-ENI and the Libyan National Oil Company appointed aseparate operating company for the station and required theinstallation of a performance / contract monitoring system to:

Monitor and report performance of the station and eachturbo-compressor using Key Performance Indicators ofactual performance versus contractual performance e.g.fuel usage, electricity consumed, steam generated andpipeline nominations

Evaluate and report achievement of contractual targetsand overall plant performance

Provide online thermodynamic performance calculationsfor each turbo-compressor train and for the overallcompressor station

Simulate different combinations of compressor trains andprocess duties to achieve the highest energy efficiency forany scheduled gas flow

GL was selected to provide a comprehensive and integrated onlinesolution for plant performance monitoring, verification and simulationof the Mellitah compressor station.

Since the gas comes from a variety of sources, a gas propertiesmodule uses online analyser data to accurately calculatethermodynamic properties. For each operating condition the GLperformance system accurately models theoretical design curves forthe twin barrel centrifugal compressors to calculate: efficiency andpower.

The GL solution provides the following benefits to the Green Streamconsortium and its Operations and Maintenance service provider:

Effective remote compressor station performancemonitoring of gas supply shipments to Europe

Contract support and tracking of multi-million dollardeals with financial penalties for under-performance

Decision support tools that simulate plant operation toimplement appropriate measures for achieving optimumefficiency and minimising operating costs

Key information for implementing preventive andcorrective maintenance strategies, including verificationof pre- and post-overhaul performance

Offline decision support tools for what if simulation ofcompressor station capacity under different gas supply /demand scenarios

Diagnostic and alarm statistics enabling good operationspractise plus increased machine availability, increasedreliability and a reduction in unplanned shutdowns

9

CASE STUDIES

b. Emissions Reporting

Date: 2007Customer: Al Rusail Power CompanySavings: Compliance with emissions reporting requirements

The Al Rusail Power Company of Oman selected GL to design, installand commission a Predictive Emissions Monitoring System (PEMS) fortheir 665MW natural-gas-fired open cycle power station.Environmental permits for air pollution control from stationarysources, issued by the Sultanate of Oman Ministry of RegionalMunicipalities and Environmental and Water Resources, require powerstations to report emissions such as NO2, CO, CO2, SO2 andunburned hydrocarbons.

The GL system is a calibrated predictive emissions monitoring systemapproved in certain countries as a robust and verifiable method ofdetermining and reporting emissions to satisfy Governmentrequirements.

The power plant was commissioned in stages between 1984 & 2000and in December 2006 was acquired by SMN Power HoldingCompany Limited to become the first state-owned power generationcompany to be privatized in the Sultanate of Oman. The plant islocated 40-km west of Muscat and primarily uses natural gas fuelhowever, as a backup diesel fuel oil is stored on site. Electricity is soldto the Oman Power and Water Procurement Company.

The GL system, commissioned in March 2008 obtains processparameters from three different turbine control system types, flowmeters on each turbine gas feed line and ambient data from anon-site weather station. The User-friendly web-enabled system is alsoused to record and display bearing vibration signals and individualturbine power output, by extracting data from energy meters.

The system continuously calculates and reports emissions for the eightGE Frame 9 gas turbines, with one having been modified with a DryLow NOx (DLN) combustion system.

10

CASE STUDIES

c. Condition Monitoring

Date: 2008Customer: Bord Gis ireannSavings: Remote condition & performance monitoring

Bord Gis ireann (BGE) is wholly owned by the Irish Government.With headquarters in Cork Ireland, BGE own and operate a naturalgas transmission network to the highest international safety andoperating standards.

The transmission network is monitored 24/7 at Grid Control locatedin Cork. A SCADA system continuously monitors network conditionsincluding compressor stations. Currently BGE operate 13 gasturbine-driven compressors comprising four units from three differentmanufacturers. This diversity means that the information presented bySCADA is insufficient for accurate monitoring of compressionmachinery condition, performance or emissions.

Following the successful implementation of a GL emissions reportingand performance monitoring system for the Beattock and BrighouseBay compressor stations, BGE decided to expand this web-basedsystem to all engineering departments across the business. This alsoinvolved extending the system to include the Midleton compressorstation near Cork. Midleton has three gas turbine-driven compressortrains and BGE wanted to monitor both the performance andvibration characteristics of these machines. Therefore, GL expandedthe system by adding condition monitoring technology at Midleton,which includes a vibration monitoring & protection system usingVibro-Meter product plus vibration monitoring & analysis software.Middleton is linked to the BGE data network and engineers, includingGL, can securely and remotely monitor the performance and conditionof these compressor stations using the Internet.

The GL solution currently adds value to BGE business in the followingareas:

Automatic emissions monitoring and reporting per trainand per station

Decision support look-ahead traffic-light dashboardtracking compliance with permitted emissions limits

Online performance monitoring of compressor trains

Online mapping of compressor operating points

Online trending of vibration signals

Logging and comprehensive analysis of start-up &shut-down transient measurements

Compressor train condition monitoring

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CASE STUDIES

Germanischer Lloyd does not warrant or assume any kind of liability for theup-to-date nature, accuracy, completeness or quality of the information provided.Liability claims against Germanischer Lloyd arising out of or in connection withmaterial or non-material loss or damage caused by the use or non-use of informationprovided, including the use of incorrect or incomplete information, are excludedunless such loss or damage is caused by the proven wilful misconduct or grosslynegligent conduct of Germanischer Lloyd.All offers are subject to alteration and are non-binding. Germanischer Lloyd expresslyreserves the right without notice to change, supplement or delete parts of the pagesor the entire offer or to stop the publication temporarily or definitively.

Germanischer LloydIndustrial Services GmbH

Oil and Gas

Steinhft 9

20459 Hamburg, Germany

Phone +49 40 36149-7700

Fax +49 40 36149-1781

glis@gl-group.com

www.gl-group.com/glis

Issue no.001 15.05.2008

Asset Management Services

Plant Integrity Management Services

Pipeline Integrity Management Services

Production Optimisation (Includes RAMand Gas Processing)

Dynamic and Steady State Simulation

Rotating Equipment Performance &Condition Monitoring includingEmissions Reporting

Gas Quality and Interchangeability

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