THE LNG FPSO

Wim van Wijngaarden - SBM 

Jos Leo – ABB Lummus Global 

OFFSHORE NICHE LNG PRODUCTION - 

UNLOCKING STRANDED GAS 

The Niche LNG SM FPSO 

A novel concept jointly developed by 

ABB Lummus Global and SBM 

OFFSHORE NICHE LNG PRODUCTION – UNLOCKING STRANDED GAS 

1

INTRODUCTION 

�� ABB and and SBM Background 

�� A new new context for for the the industry 

�� The The offshore solution 

�� Stranded gas gas monetization 

�� The The LNG FPSO 

� 

�Concept Concept overview 

� 

�Commercial Commercial evaluation 

� 

�Applications Applications 




2

BACKGROUND – SBM EXPERTISE 

� 

�Single Single Point Point Mooring systems; market market leader leader 

� 

�Turn-key Turn-key and and Leased Leased F(P)SO’s: Oil, Oil, Gas Gas & LPG; LPG; 

market market leader leader 

� 

�Deep Deep water water installation services 

(2 (2 installation vessels) 

� 

�New New products: F(S)RU’s, COOL COOL terminals 

� 

�After After sales sales services 




3

BACKGROUND – ABBLG EXPERTISE 

� 

�A A 100% 100% ABB ABB company 

� 

�A A leading leading international EPCI EPCI contractor 

� 

�Worldwide Worldwide office office locations 

� 

�Portfolio Portfolio includes Oil Oil and and Gas Gas services: 

on- on-and and offshore, refining refining and and petrochemicals 

� 

�Offshore Offshore deepwater floater floater experience 

� 

�Leader Leader in in cryogenic gas gas plants plants 

� Niche LNGSM � Niche LNG technology 

SM technology 

and and topsides in-house developed 




4

NEW INDUSTRY CONTEXT – GLOBAL ENVIRONMENT 

�� The The changed geopolitical climate 

�� Stronger state-owned energy companies 

�� Strategic role role of of energy 

�� Should we we talk talk about ‘energy crisis’? 

�� In In other words: ‘Climate’ change 




5

NEW INDUSTRY CONTEXT – GLOBAL ENVIRONMENT 

�� The The changed geopolitical climate 

�� Stronger state-owned energy companies 

�� Strategic role role of of energy 

�� Should we we talk talk about ‘energy crisis’? 

�� In In other words: ‘Climate’ change 




6

NEW INDUSTRY CONTEXT – ENERGY INDUSTRY RESPONSE 

How How can can the the energy energy industry 

survive? 

�� Price stability 

�� Securing affordable 

energy 




7



survive? 



energy 

�� Diversification and and 

alternative energy 




8



survive? 



energy 



�� New New technology for for 

reserve replacement 




9



survive? 



energy 



�� New New technology for for 

reserve replacement 

�� Attract technical 

professionals 




10

NEW INDUSTRY CONTEXT – GAS: A NEW ERA 

�� Traditional: 

�� Pipeline transportation 

�� Limited role role for for LNG on on world scale 

�� Controlled by by large energy companies 




11

NEW INDUSTRY CONTEXT – GAS: A NEW ERA 

�� Coming: Traditional: Coming: Traditional: 

�� Pipeline Larger Pipeline Larger role role transportation 

for for LNG 

�� Limited New Limited New market role role for entrants for entrants LNG on (gas on (gas world traders, 

scale 

�� utilities, Controlled service providers, shipping 

by by large providers, 

energy shipping 

companies 

companies) 

�� Merchant type type contracts 

�� New New technologies 

�� Development of of offshore gas gas fields 

�� Unlocking stranded gas gas reserves 




12

STRANDED GAS – WHERE ? 

Stranded Gas 




13

STRANDED GAS MONETIZATION – OPTIONS 

All with their limitations….. 

NGL only, flaring or Re-injection of CH 4 

Limited Market 

Complex Process 

High Capex and Opex 

Plant Size 

Novel 

Pipe 

line 



CNG 

LNG 


GTL 

Distance to Market, Cross border politics 

Fixed - nonflexible 

14 

DME 

DME 

LPG 

NGH 

Economics 

GTW 

GTW

STRANDED GAS MONETIZATION – WHY LNG? 

�Strong �Strong growth of of gas market 

�Good �Good fit fit with SBM’s core business --floating floating production, lease, 

mooring 

�Good �Good fit fit with ABB’s core business --Offshore Offshore EPC projects, 

gas technology and Cryogenic gas plants 

�Usage �Usage of of existing infrastructure (terminals, ships) 

�Use �Use of of proven technology (liquefaction, storage, offloading, 

station keeping) 

�Upside �Upside potential in in case of of co-production of of LPG or or HC 

condensate 




15

STRANDED GAS MONETIZATION – LNG MARKET ENVIRONMENT 

Monetize stranded gas reserves 

� 

� Offshore gas gas fields fields 

� 

�

THE LNG FPSO – CONCEPT OVERVIEW 

��Configuration Configuration 

��Design Design criteria 

��Hull Hull and and marine 

��LNG LNG offloading 

��Liquefaction Liquefaction 

��Topsides Topsides Layout 

��Evaluation Evaluation 

��Further Further development 

��Applications Applications 

��Summary Summary 




17

THE LNG FPSO – CONFIGURATIONS 

Oil 

Development 

OIL 

FPSO 



Associated 

Gas Feed 

Stock 

NICHE LNG SM 


Non associated gas: 

� Remote location, deep 

� Topographic isolation 

� X-border isolation 


Niche LNG 

Chain 

18 


LNG TRADE CARRIER 

LPG CARRIER 

FOR SMALL 

PARCELS 

LNG TRADE CARRIER 

Associated gas 

NICHELNGSM NICHE LNG 


SM 

FPSO

THE LNG FPSO – DESIGN CRITERIA 

��Safe Safe system 

��Simple Simple liquefaction process, suitable for for use use on on floaters 

��Small Small footprint 

��Various Various end-products 

��Reasonably Reasonably high high overall efficiency 

��High High uptime and and reliability 

��Offshore Offshore Capacity:150 – 300 300 mmscfd 

��LNG LNG output 1.6 1.6 MTPA 

��LPG LPG output 0.4 0.4 MTPA 




19

THE LNG FPSO – HULL & MARINE 

��Steel Steel hull hull 

��External External turret mooring 

��Forward Forward machinery 

��5 5 SPB SPB LNG tanks; 170K-m3 

��1 1 x SPB SPB LPG LPG tank; 35K-m3 

��Power Power plant in in machinery spaces 

��Side-by-side Side-by-side LNG offloading 




20

THE LNG FPSO – LNG OFFLOADING 

� 

�Enhanced Enhanced side-by-side (SBS) (SBS) 

� 

�Soft-quay Soft-quay mooring (SQM) (SQM) 

� 

�Soft-yoke Soft-yoke mooring and and offloading (SYMO) 




21

THE LNG FPSO – LNG OFFLOADING 




22

THE LNG FPSO - LIQUEFACTION 

Inlet Gas 

Facilities 



Feed Gas Preparation LNG Liquefaction 

Gas 

Treating 

Utilities 

CO2,H2S 

Solvent 

Regen 

Dehydration 

Regen 

H2O 


LPG 

Extraction 

C3/C4's Condensate 

LPG/C5+ 

Storage 

LPG/Cond. 

Off-loading 

To Ships 

23 

Dry Gas 

Gas 

Reception/ 

Compression 

Utilities 

Liquefaction 


Storage 


Off-loading 

To Ships

THE LNG FPSO – LIQUEFACTION 

Methane Expansion + Propane Refrigeration 

Recycle Stream 

Recycle Compressor 

Booster Compressor 

BAHX 

Inlet Gas Stream After 

Treating and Dehydration Expander 

This scheme is the intellectual 

property of the Randall Division of 

ABB Lummus Global Inc. 


LNG-Pro Scheme 

(U.S. Pat 5,755,114) 


Propane Refrigerant 

To/From 


c 

Expander Outlet Separator 

LNG Production Flash 

c 

Dual Expansion Methane / Nitrogen 

Methane Recycle 

Compressor 

Nitrogen Recycle 

Compressor 

Intellectual Property of ABB Lummus Global 

U.S.Patent 6,412,302 

Embodiment 'B' 

Methane Expander 

BAHX 

24 

Liquid Expander 

Nitrogen Expander 

Propane Pre-Cooled 

Dual Expansion Methane / Nitrogen 

Treated Inlet Gas 

Methane Recycle 

Compressor 


Compressor 

Intellectual Property of ABB Lummus Global 

U.S.Patent 6,412,302 

Embodiment 'C' Propane Pre-Cooled 

HL Chiller 

LL Chiller 

Methane Expander 

BAHX 


Nitrogen Expander


Technologies 


Embodiment 'A' 



Methane Booster Methane Recycle 

Compressor 

Nitrogen Booster 

Treated Inlet Gas 


Compressor 


Dual Expansion Cycle (U.S. Patent 6,412,302) 

LNGCoolingantimation.exe 

25 

BAHX 


Methane Expander Nitrogen Expander




Plate Fin Heat Exchanger Turbo-Expander 

Compression String 


26 

Methane Cycle 

Nitrogen Cycle 

Methane 

Compressor 

Nitrogen 

Compressor 

Methane to BAHX 

Nitrogen To BAHX

THE LNG FPSO – TOPSIDES LAYOUT 

LPG Extraction 



Gas Treating 

Offloading Units 

Cold Boxes 

El. Drivers 


Utilities 

Accommodation 

27 

Turret 

Power Generation 

Principal dimensions 

� 

�Length Length overall overall 301 301 m 

� 

�Length Length p/p p/p 255 255 m 

� 

�Width Width 56 56 m 

� 

�Depth Depth ~32 ~32 m 

� 

�Lightship Lightship weight weight 

72,000 72,000 ton ton 

� 

�Topsides Topsides weight weight 

12,000 12,000 ton 

ton

THE LNG FPSO – 5 MMTA PLANT COMPARIZON 

Safety 

Equipment Count 

Topside Weight 

FPSO Delivery (Yrs) 

Start-up 

Efficiency 

Train Size 



Niche LNG SM 

Gaseous Refrigerants 

350 

30,000 t 

3 – 3.5 

Hours 

High 

0.5 – 1.7 


28 

Conventional 

Liquid Refrigerants 

700 

45,000 t 

5 

Days - Weeks 

Slightly Better 

5 - 9 

Benefits 

Explosion risk minimized 

Less congestion 

Impervious to motions 

Spill damage minimized 

Simpler operation 

Smaller Plant Area 

Reduced Capex (- 30%) 

Reduced Opex 

Lower Weight 

Early production 

Flexible to Shutdowns 

Slightly less efficient – 

countered by CCGT 

Multiple Trains

THE LNG FPSO – COMMERCIAL EVALUATION 

Basis Basis for for Economic Evaluation 

�� Field Field life life 20 20 years years 

�� LNG LNG output output 225 225 MMscfd MMscfd equiv. equiv. over over field field life life 

�� Production Production days days per per year year 350 350 

�� IRR IRR required required (pre-tax) (pre-tax) 15% 15% on on equity equity invested invested 

�� Cost Cost of of capital capital 8% 8% 

�� Inflation Inflation 2% 2% 

�� Financing Financing ratio ratio 25% 25% Equity/75% Equity/75% Foreign Foreign Capital Capital 

�� No No of of years years financing financing 15 15 

�� Cost Cost of of feed feed gas gas 1.00 1.00 $/MMBtu $/MMBtu (Non-AG) (Non-AG) 

�� Cost Cost of of Regasification Regasification 0.40 0.40 $/MMBtu $/MMBtu 

�� LNG LNG carrier carrier costs costs 100 100 kUS$/day kUS$/day for for 140,000 140,000 m³ m³ 




29


Costs US $/MMBtu 

6.00 

5.00 

4.00 

3.00 

2.00 

1.00 

0.00 



SHIPPING DISTANCE IMPACT ON COST OF SERVICE 

1 Carrier 

1 Carrier 

2 Carriers 

2 Carriers 

0 2,000 4,000 6,000 8,000 10,000 


3 Carriers 

Shipping Distance, Nautical Miles 

30 

3 Carriers 

4 Carriers 

Carrier Capacity 140,000 m 3 

Feed LNG Transp Regas 

LNG Make, 

MMscfd 

225 

300


WEST AFRICA NON-AG COSTS 

Costs US$/MMBtu 

4.00 

3.80 

3.60 

3.40 

3.20 



1 Carrier 

South South 

Africa Africa 

0 1,000 2,000 3,000 4,000 5,000 6,000 


Shipping Distance, Nautical Miles 

31 

Spain 

Spain 

2 Carriers 

2 Carriers 

3 Carriers 

SE SE Coast Coast 

USA USA 

LNG Make, 

MMscfd 

225 

300


Monthly Average US$/MMBtu 


14.0 

12.0 

10.0 


8.0 

6.0 

4.0 

2.0 

0.0 

Oct-03 Apr-04 Nov-04 May-05 Dec-05 Jul-06 Jan-07 


5 Years Forecast, 7.5 

Dates 

32 

Henry Hub 

Henry Hub Monthly Average 

West Africa Cumulative Price: 3.3 – 3.8 

Henry Hub 

Delta ~ 4 US $

STRANDED GAS MONETIZATION – REGIONAL MARKETS 

Stranded Gas 

Import Markets 




33

THE LNG FPSO – NEXT STEPS 



�� Development strategy is is currently being implemented 

involving: 

�� structuring of of project and partnerships 

�� progressing engineering 

�� Ambition is is to to have the the first Niche LNG FPSO operational 

in in 2011 


35

THE LNG FPSO – SUMMARY NICHE LNG SM 

�� Large quantities of of stranded gas exist worldwide 

�� No No Infrastructure exists to to exploit this this gas 

�� LNG technologies designed to to commercialize these stranded 

gas reserves 

�� Targeted for for 75 75 to to 300 MMscfd 

�� Suitable for for land-based, near shore, or or offshore applications 

�� Commercially attractive 

Thank you for your attention 




36




37

THE LNG FPSO

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