Spreading LNG expertise worldwide

Published: July 31, 2013

Shanghai Wuhaogou LNG Terminal in Pudong, China © Tractebel Engineering

 

High demand and new International legislation are driving LNG terminal developments from El Salvador to China, increasing the call for proven LNG expertise. With its many years experience in LNG, Tractebel Engineering is kept busy in this challenging field where options abound, but CAPEX is the ultimate decider.

LNG – A VERSATILE ENERGY SOLUTION

A reliable and green energy option, natural gas is THE most viable fuel option to reduce environmentally-harmful emissions for many countries. Small LNG terminals are now replacing the need for long gas pipelines and creating a more versatile and fast way to secure gas supplies according to specific capacity needs and end use… Read more

A RAPIDLY GROWING REPUTATION IN LNG

More than 30 years experience, engineering more than 100 LNG terminals with over 25 realised, Tractebel Engineering’s global reputation for expertise in the fields of onshore and offshore LNG terminals is drawing new clients and developing unique projects around the world.


LNG – A VERSATILE ENERGY SOLUTION

A reliable and green energy option, natural gas is THE most viable fuel option to reduce environmentally-harmful emissions for many countries. Small LNG terminals are now replacing the need for long gas pipelines and creating a more versatile and fast way to secure gas supplies according to specific capacity needs and end use.

BEYOND THE PIPELINE
While pipelines exist to distribute gas, the demand capacities needed to make long (over 1 200 km) pipelines viable are huge. For countries with lower capacity needs or those looking for the security of independent supply, LNG terminals at a small scale (up to 70,000 m3 storage capacity) to feed small PP, ship bunkering, truck loading and local communities, or large scale (300,000 m3 storage capacity) to feed national gas grids, are a smart option.

FUELLING LNG GROWTH
The flexibility in scale and location of LNG terminals – onshore, offshore (FSU and FSRU) and inland (satellite LNG terminals on major rivers), is further fuelling interest in LNG terminal development worldwide. New International Environmental Regulations are coming into force prohibiting heavy-fuel and diesel as shipping fuel, as in the North Sea from 2015; this will mean new satellite LNG fuelling stations on shipping routes. All round, it is an exciting market in which experience and knowledge are in high demand.

CAPEX – THE FINAL DECIDER
Whilst environmental issues are the driving force behind the regulatory developments, CAPEX will determine the LNG route to be applied. The construction cost of an LNG terminal can be substantial – largely due to complex marine works, cryogenic components and the long construction time (3 to 4 years) for storage tanks. Applying expertise to the feasibility and FEED (Front End Engineering Design) phases of LNG terminal development, Tractebel Engineering have a track record for defining the most cost effective options in terms of the needs and constraints of a project and providing accurate CAPEX assessments – allowing clients to make informed design and investment decisions from the start.

Our extensive experience in the new build and expansion of LNG terminals is put to good use in helping all our clients achieve the optimal organization, planning and co-ordination of their projects, from planning and procurement, through to the construction and seamless integration of all elements, to ensure project delivery on time and within budget.Daniel Acheroy, LNG Technical Director, Power & Gas

  • Jin Dong Qi, General Manager Shanghai Natural Gas Pipeline Co., Ltd., Georges Cornet, CEO Tractebel Engineering © TE
  • Front row Mrs Zhang Ming and Mrs Jin Dong Qi, second row on the right Mr ZheHong Wang © TE Front row Mrs Zhang Ming and Mrs Jin Dong Qi, second row on the right Mr ZheHong Wang © TE
  • Shanghai Wuhaogou LNG Terminal in Pudong, China. © TE Shanghai Wuhaogou LNG Terminal in Pudong, China. © TE
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  • Visit Georges Cornet in June 2013 at Shanghai Wuhaogou LNG Terminal in Pudong, China. © TE

 

A MAJOR LNG TERMINAL EXTENTION – SHANGHAI, CHINA


TERMINAL EXPANSION EXPERTISE OPENS UP CHINA

Based on good relations and knowledge of Tractebel Engineering’s experience in large terminal expansions, in June this year, Shanghai Natural Gas Pipeline Co., Ltd, (Shanghai Gas Group Cy), contracted Tractebel Engineering to provide special consulting services on their project to extend Shanghai Wuhaogou LNG Terminal in Pudong, China. Wuhaogou, originally a peak shaving terminal utilising Pinghu LNG field (East Sea) as a gas source, was founded in 1999 to manage peak gas supplies to Shanghai. Initially equipped with 20,000 m³ tanks, a 1st expansion project was completed in 2008 with 2 LNG 50,000 m³ tanks, a special jetty and 2 gasification units of 120,000 Nm³.

A VALUABLE STAMP OF APPROVAL
Shanghai Gas has ordered the detail design works for the current extension from a local Chinese design institute and is looking to Tractebel Engineering for expert design review and approval, as well as Project Management Consulting services (HAZOP studies, scheduling & cost control, site supervision and commissioning). This PMC contract will see Tractebel Engineering assist with the Project Management and technical aspects, working within the client’s own project management team, for the construction of 2 new 100,000 m3 LNG tanks and related cryogenic piping, as well as 2 new submerged combustion vaporizers (SCVs) to substantially optimise and increase the terminal’s storage and regasification capacity.

MOBILIZING EXPERTS TO ADD VALUE
Tractebel Engineering will mobilise an experienced Project Management and Construction team –fully supported by a Brussels based multidisciplinary team of experts, to assist the owner in China for a period of 33 months with targeted delivery mid 2016. The terminal must remain operational during expansion works


  • Paldiski - site of the future terminal © TE Paldiski - site of the future terminal © TE
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BALTI GAAS MAKE A BID FOR REGIONAL AND NATIONAL GAS SECURITY IN ESTONIA

 

FEED FOR ONSHORE LNG TERMINAL AT PALDISKI
In a bid to provide an LNG solution to the East Baltic region, Balti Gaas (belonging to the expanding Alexela Group) has ambitious plans to develop a new onshore LNG terminal in the port area of Paldiski, on the Baltic Sea. Seeking expertise to further these plans, Balti Gaas came directly to independent consulting engineers, Tractebel Engineering, in 2012 to carry out a FEED for the design and elaboration of the best concept for the large-scale LNG delivery, regasification and send-out to gas networks serving Estonia and surrounding Baltic and Scandinavian countries. The FEED split into 2 phases:

  • Defining the concept and potential solutions in terms of the business model,
  • Taking the selected scenario forward to a FEED; defining plant capacities, design basis, process design, safety philosophy, cost estimation, contracting procedures, planning and many other specifications leading to EPC tender.

UNUSUAL COMPETITION & SITES
Balti Gaas is facing tough competition from a similar project, based in Inkoo in Finland, for EU financial aid (currently the region is totally reliant on Russian gas and only two of the countries comply with the N-1 rule on security of supply – so the EU is looking to safeguard the region against this situation). Only one of the projects will be supported and plans for Balti Gaas are pinned, not only on a sound business case, but also on its unusual “greenfield” site.  For many years a Soviet nuclear submarine training station; Paldiski was chosen then, as now, for its accessible port which seldom freezes in winter ( benefits not always applicable to alternative sites), an important fact when manoeuvring 300 m long and 45 m wide LNG carriers. The site, cleaned by the departing Russians in 1995, has been studied by Tractebel Engineering/SSI geotechnical experts to confirm its suitability and safety.

SHARPER DECISION MAKING UNDER PRESSURE
Pending the EU decision, Tractebel Engineering has studied multiple scenarios and terminal sizes – 60,000 to 160,000 m3 capacity for a pure national send-out and up to 320,000 m3 capacity for regional send-out. This will allow Balti Gaas to make sound business decisions in either case.  With the goal to have LNG on tap by the end of 2016 Tractebel Engineering has demonstrated important flexibility and expertise towards making it happen.


OPEN SEA OFFSHORE LNG TERMINAL – ACAJUTLA, EL SALVADOR


NEW GAS OPTIONS FOR EL SALVADOR

El Salvador; able to generate energy with hydro- and geothermal power, yet still over 50 percent reliant on small, heavy-fuel thermal power generators, is looking to convert to gas. In 2012 Tractebel Engineering was contracted by developers Quantum Energy for the pre-feasibility study of a classic onshore LNG terminal in the port of Acajutla.

QUICK CHANGE
However, in April 2013, the Government of El Salvador then launched a Power Purchase Agreement (PPA). Going into partnership with Wärtsilä to develop the LNG terminal (and a 350 MW gas-fired PP), Quantum Energy requested Tractebel Engineering to do a new conceptual study, focussing on an offshore FSU solution with the goal of speeding up commercial availability and reducing CAPEX, in light of the future PPA bid.  The scope included:

  • Storage capacity options of FSU of 170,000 m3 and 140,000 m3 supported by an onshore buffer tank of 50,000 m3
  • Preliminary plot plans and process flow diagrams for both options
  • Preliminary equipment lists
  • Estimated CAPEX
  • A shipping market survey appraising FSU vessel availability
  • A metocean study – to determine the need for a breakwater or buffer capacity

A SOLUTION SET BY SITE AND COST
The Acajutla coast is exposed to intense weather and wave conditions. In an open sea site, storage vessel downtime calculations based on metocean analysis are vital to evaluate the need of a breakwater to protect the open water jetty. This was key to defining the best solution for the client and the basic costs related to each option.  With the study completed in 3 months, allowing for a final technical decision and FEED study to formalise the CAPEX, our client is now positioned to prepare a competitive PPA bid.

 


A 4 KM OFFSHORE LNG TERMINAL BOOT PROJECT – URUGUAY

 

SUPPORTING LNG FSRU PROJECT DEVELOPMENT
GDF SUEZ Energy International (GSEI) is finalising a BOOT tendering process with Gas Sayago for a large offshore LNG terminal 4 km off the coast of Montevideo. This will be the first “FRSU MAX” (Floating Regasification & Storage Unit) terminal in the world! Tractebel Engineering has supported the bid from the start – conducting feasibility studies in 2012 to help GSEI prepare for prequalification.

Since then, a pre-FEED for the topside facilities (piping, civil works for control building, electrical, mechanical equipment, safety, specifications etc.) of the offshore terminal, as well as the gas transfer between the FSRU and Uruguay gas network via HP undersea gas pipeline, has helped optimise CAPEX estimations in view of the final BOOT bid. Key tasks achieved were:

  • Forward tendering for the 2 major parts of the installation: the loading arms (cryogenic arms and large bore cryogenic valves) and the gangway towers.
  • A Reliability, Availability & Maintenance (RAM) study of the HP gas send-out.
  • Preparation of a 3D model of the installation, in support of the BOOT bid.
  • Supporting GSEI in their bid preparation.

Similar studies for the jetty and breakwater trestle have also been done by IMDC, Tractebel Engineering’s marine works and infrastructure subsidiary.

SPEED AN IMPORTANT DRIVER
For GSEI and Gas Sayago, the main driver is rapid gas availability (2015) at the best price. The FSRU solution answers this and, meeting the high LNG storage needs, a “Max” FSRU with a 263,000 m3 storage capacity has been ordered for the project. A 4 km offshore breakwater will shield the mooring. With regasification done aboard the FSRU, the gas connection will be direct to the mainland grid. While every LNG terminal is unique, Tractebel Engineering was able to add extra value, using previous experience (Mejillones, Chile), as a basis for early design and cost estimation to help speed the process.

mutual trust

Tractebel Engineering’s execution and professionalism left us with a deep impression. We have established friendly and cooperative relations of mutual trust, which will promote the success of the project.Jin Dong Qi, General Manager of Shanghai Natural Gas Pipeline Co. Ltd.

PRESS RELEASE

Shanghai Gas (Group) Company, Ltd. has called on Tractebel Engineering to provide expert LNG terminal project management and consulting services for the expansion of the Shanghai Wuhaogou LNG Terminal in Pudong, China. Read more

appreciation

Prime Minister of Belgium Elio Di Rupo tweeted about Tractebel Engineering’s LNG contract: Belgian expertise is appreciated in the world

More information

Jabir Ben Haj Taieb, Head of Sales Gas & LNG, Tractebel Engineering/P&G
Johan Claeys, Project Manager, Paldiski LNG Terminal, Estonia
Cédric Andrieu, Project Manager, Gas Sayago LNG Terminal, Uraguay
Geert Wambacq, Project Manager, Wuhaougou LNG Terminal, Shanghai
Lorena Iglesias, Project Manager, Acajutla LNG Terminal, El Salvador

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