Hamworthy Gas Systems AS

LNG Journal Conference Norshipping 9 June 2005 LNG reliquefaction systems - Why LNG reliquefaction - Concept description LNG regassification systems - Concept description

Hamworthy Gas Systems AS

LNG Journal Conference Norshipping 9 June 2005 LNG reliquefaction systems - Why LNG reliquefaction - Concept description LNG regassification systems - Concept description

The LNG value chain

LNG: a mean for concentrating and transporting energy

Natural gas is the fastest growing energy source Approx. 25% of gas export as LNG LNG world trade growth 15% in 2004 New challenges for LNG transportation

Hamworthy PLC
How do we fit in ?

international operations high technology products and systems total commitment to innovation focus on specialist ships emphasis on system design and integration emphasis on procurement rather than own manufacturing of all equipment 80% of sales for the production and transportation of oil and gas demand is driven by increasing environmental, safety and noise regulation and expansion in world trade and energy transportation more than 40 years delivery reference to gas ships awarded all contracts for LNG reliquefaction systems for QG LNG Carriers with slow speed diesel propulsion system

LNG carriers propulsion system today

Why change ? Low efficiency of turbines high fuel consumption/cost Valuable cargo used as fuel Lack of crew to operate steam turbines Power required by large LNG carriers at boundary of existing turbine design Limited redundancy 2 suppliers

Boil-Of-Gas (BOG) is a result of the LNG warming up during transportation. All BOG now used as fuel in steam turbine propulsion systems. Reliability in existing system considered to be very high. Proven system with low lubrication and maintenance cost

Alternative to to-days practice

BOG reliquefaction system in combination with 2 stroke diesel engine(s) The Moss RS reliquefies BOG and send LNG back to the cargo tanks Results in economical and technical advantages Hamworthy has worldwide rights to the patented Moss RS TM

Slow speed diesel with BOG reliquefaction

High overall efficiency Proven propulsion system with high level of reliability Proven solutions for large LNG C Reduced CO2 emissions Crew availalble Well known technology for shipyards & owners (design, installation and operation)

Twin screw system;

Propulsion redundancy, reduced propeller load, lower power consumption, improved manoeuvrability

Reliquefaction of BOG increase amount of cargo delivered Separate auxiliary generator

NOx & SOx emissions Bunkering for some routes need to be established
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high total installed power

LNG Reliquefaction system

Two principle different solutions available for LNG carrier propulsion:
1. Use BOG & LNG as fuel e.g steam turbines, dual-fuel diesel electric, gas engines 2. Use efficient slow speed diesel engines and BOG reliquefaction, sell all LNG loaded onboard LNG level in tanks Maximum Pattern for ships using BOG & LNG as fuel for propulsion

Fuel used during roundtrip (Natural BOG & forced) Additional LNG delivered with Slow Speed diesel and BOG Reliquefaction System

Minimum
Minimum heel required for cool dow n of tanks

Ballast

Laden

Ballast
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LNG Reliquefaction system

LNG & HFO prices
7, 00 6, 00 5, 00 $/ mBTU 4, 00 3, 00 2, 00 1, 00 0, 00 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5

Future price difference ??

Japan CI F E U CI F US Henry Hub HFO price

HFO always been competitive compared with natural gas prices in Europe, USA and Japan. Gas price in Europe and USA in average (1994-2001) 110% higher than HFO prices Japanese gas prices has been 160 % of HFO prices The gas prices has increased considerably compared with HFO the last years
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Propulsion alternatives & energy consumptions

Best efficiency, Lowest total fuel consumption, Lowest value fuel (HFO) Improved efficiency, High value fuel (LNG or MDO) Improved efficiency, High value fuel (LNG) 30 Lowest efficiency, Highest total fuel consumption, High value fuel (LNG) + HFO

50 40

Source: Man B&W

Propulsion type Slow Speed diesel Diesel electric Gas turbines Conventional steam turbine

Relative energy cons. Main + aux system (%) 66 72 84 100

Example made by shipowner

LNG Reliquefaction system

Slow speed diesel and reliquefaction system (RS) compared with alternatives; Lowest total operating cost (efficient propulsion using HFO, maintenance and lube oil) Additional sale of LNG
Relative increase annual LNG deliveries LNG sales price 3.5 $/Mbtu
4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 % % % % % % % % % Steam turbine
Avg. BOR 0,08%/day Avg. BOR 0,10%/day

4.3 M$ 3.4 M$

5.5 M$

Diesel
Avg. BOR 0,12%/day

Investment level for newbuildings with alternative propulsion; ?? Traditional size vessels, reason to believe steam still lowest. Slow speed diesel and RS competitive, in particular for large LNG Carriers

LNG Reliquefaction system

Environmental impact emission levels

Note;
Entire LNG chain should be taken into account for environmental impact evaluations. Avoid suboptimisation !

60 000 t/year

Source: MAN B&W (150 k m3 LNG C)

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Snurrevarden LNG plant - Norway

LNG liquefaction

The feasibility of the Reliquefaction technology to be used onboard LNG C has been demonstrated First free-standing small scale (micro) LNG plant in Scandinavia Hamworthy EPCIC contract with GASNOR for small scale LNG plant LNG production capacity 60 ton/day (2500 kg/hr) Unmanned operation The plant produced first LNG on 15th March 2003

LNG Reliquefaction system

Snurrevarden LNG plant has resulted in awards of LNG RS for LNG Carriers !

----

Onshore plant vs installation on LNG carrier; Main equipment same as for the ships; LNG productioncentrifugal compressor with expander for refrigeration cycle Similar 3 stage capacity 60 ton/day (2500kg/hr) Pre-treatmentboxfeed gas, removal ofexchanger) (not on LNG carriers) Similar cold of type (plate fin heat CO2 & water Storage Feed gas pressure to be reduced no need for low duty compressors tank Same control system principles
CO2 re moval Gas engine H2 O re moval

Cooling cy cle compre ssor Ins trument air & Nitrogen

LPG se pa rator & Gas conde ns ation (LN G)

Snurrevarden LNG plant - Norway

Succesful operation in more than 2 years Unmanned operations Contractual requirement free regulation from 1.670 kg / hr to max capacity 2.500 kg/hr After commissioning: Free regulation from 0 kg/hr up to max capacity Max achieved capacity = 2.831 kg/hr

LNG Reliquefaction system

Process description The system consist of ; Cargo cycle Nitrogen cycle Auxiliary system Different capacities studied; BOG composition Nitrogen 0-30 mol% Methane 70-100 mol% BOG rates (BOR): 0,08- 0,16%/24 hours Boil-off mass flow dependant on BOR & tank size: 2000-11000 kg/hr
Ven t or GCU

LNG Reliquefaction system

General arrangement membrane ship
3 stage centrifugal compressor with expander & el motor BOG compressors Cold box & separator Pre-cooler

N2 reservoir (on roof)

LNG Reliquefaction system

General arrangement Spherical tanks
N2 reservoir Low and high duty compressors 3 stage centrifugal compressor with expander & electric motor

Cold box

Separator

LNG Reliquefaction system

Cargo cycle
Discharge pressure from BOG compressor is 4,5 bar and the BOG is cooled and condensed to LNG at this pressure in a 3-stream plate-fin cryogenic heat exchanger (cold box).
Ven t or GCU

BOG from the cargo tanks (1.06-1.15 bar a) by conventional LD compressors.

To enable stable temp at inlet cold box, BOG is pre-cooled upstream compressors

Non-condensibles, mainly N2, are removed in a separator ( 4,5 bar) and exited to a flare (GCU) or vent mast. Partial reliq (if N2 >12%) results in ; -reduced power req. -tank pressure control From the separator, the LNG flows back to the cargo tanks

LNG Reliquefaction system

Nitrogen cycle (cooling cycle)
The RS system needs to have sufficient capacity to cater for heat ingress to the cargo tanks, vapour header and LBOG piping, in adition to heat introduced by BOG compressors The gas is led to the warm part of the cryogenic H/E where it is pre-cooled (110C) and send to the expander The gas expanded to a pressure of 14.5 bar and temp of 163 C. Gas then introduced into the cold part of the cryogenic H/E where it cools and reliquefies the boil-off gas to LNG.

N2 at 13.5 bar compressed to 57 bar in 3-stage centrifugal compressor with water cooling.

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LNG Reliquefaction system

RS - Power requirement versus BOG rate (100% C1)

6000 5000 4300 3600 3100 2900 2400

kW

BOG - kg/hr

New concept with 20 % reduction in power consumption now developed

0
BOG compressor

1000

2000

3000

4000

5000

6000

N2-compressor

LNG Reliquefaction system

Redundancy considerations IACS Rules for Redundancy for RS Spare capacity of RS unit, or Auxiliary boiler(s) for BOG, or Gas oxidiser (GCU) for the BOG, or Controlled venting

Different configurations/alternatives 2x100% capacity with 1 cold box 1x100% capacity with gas oxidizer (GCU) QGII ; 2x100% capacity with GCU Different configurations studied for new projects resulting in operational flexibility
G VE NT
+10 0 0 1 - 0 MX A I 2 - 0 MN +10 0 0 1 -0 2 -0 +10 0 0 MX A 1 - 0 MN I 2 -0 +10 0 0 1 -0 2 -0

NT OE I R GN RSRO EEVI R

+10 0 0 1 -0 2 -0 RCCN E Y LI G +10 0 0 1 -0 2 -0

+10 0 0 1 -0 2 -0

B -A S Y S P +10 0 0 1 -0 2 -0 +10 0 0 1 -0 2 -0

1
S C I NHOT U T T R T LE O

TOTANKS

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LNG Reliquefaction system

Gas combustion unit or thermal oxidizer as redundancy

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Dynamic simulation model of RS

Pre-qualification of Hamworthy as a supplier to Qatar Gas involved ; -extensive process discussions -qualifications of our sub-suppliers and development of a Dynamic model. Typical dynamic simulation cases; 1. Start-up from warm condition 2. Normal operation (3.5 t/hr) 3. Stand-by operation 4. Ballast (40% capacity, warm BOG (-40degC)) 5. Normal shut down 6. Emergency shut down 7. Varying N2 content in BOG

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Dynamic simulation model

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LNG Reliquefaction system

Proven or unproven ? The system only use proven components - first class, high quality with extensive reference System Risk

Process/system Low duty compressors used on all LNG carriers status area
Cold box (plate fin heat exchanger) widely used in onshore cryogenic installations. Refrigeration & cargo cycle in has been proven in operation. Analysis concludes 99.98 % availability Approval in principle by several class societies Independant HAZOP/HAZID with owners & class Hamworthy has supplied a small scale LNG plant based on same principles. Operational experience since Mar 2003.

Comfort factors Risk mitigation

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LNG Reliquefaction system

Summary

Slow speed diesel engines in combination with

reliquefaction system, results in improved economy LNG business is conservative and typical attitude has for a long time been; We do not want to be the first, but first to follow This is now possible ! Expect several alternative propulsion systems to be used in the future. Selection dependant on trade, size of vessels, charterers and owners preference, etc Hamworthy continues improving the system; - Reduced power consumption - Improved redundancy configurations - Improved project execution models

Hamworthy Gas Systems AS

LNG Journal Conference Norshipping 9 June 2005 LNG reliquefaction systems - Why LNG reliquefaction - Concept description LNG regassification systems - Concept description

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LNG Vaporization/gasification system

Increased import & spot/short term LNG trading in the future Capacity in existing import terminals booked/limited Permission to build new terminals in US/Europe difficult Vaporization plant onboard LNG carriers or Floating Storage Units will not need terminals

Not in my back yard !!

LNG regasification system

Regasification units on; Process/system Floating Storage Regasification Unit (FSRU) permanently anchored receiving LNG from LNG carriers or Shuttle Regasification Vessels overlapping at unloading site in order to ensure continuous send-out

3 alternative Hamworthy systems: Regass unit - Steam based (closed loops) - Seawater, alternatively with steam back-up - Cascade system

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LNG regasification system

General description of Hamworthys Cascade system

LNG from tanks

Natural gas to pipeline

The 2 stage regasification system is placed on skids on deck. Nos of skids dependant on send-out capacity and redundancy requirements

LNG regasification system

General description of Hamworthys Cascade system

Closed propane loop

1st stage : Booster pump pressurize the LNG before it is heated against propane (-163 -10C)

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LNG regasification system

General description of Hamworthys Cascade system

Seawater

2nd stage : Seawater used for final vaporization. In cases with low seawater temperature, steam to be used

Cascade LNG regasification system

LNG/seawater heat exchanger Propane LNG/propane heat exchanger (PCHE) LNG in NG out

LNG booster pump 2 Propane / Seawater HX Seawater In Seawater out Propane pump

Compact unit Reduced risk for freezing up the system

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LNG regasification system

Studies of different type of systems for FSRUs & SRVs with shell & tube type system using; -seawater, -steam, -intermediate media heated by steam or cascade system Pressure & capacity ranges; 40-130 bar 50-1100 t/hr

Cascade LNG regasification system

Joint industry project (Hegh LNG and Hamworthy) test plant of the cascade system

HAZID performed (designer, operator, DNV) DNV technolgy qualification ongoing as part of JIP Test plant to be operational autumn 2005

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LNG Journal Conference Norshipping 9 June 2005

Thank you for attention

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