Liquefied Natural Gas

Tankers and

FLNG

John KernaghanOffshore Engineering Society

9th February 2010

AGENDA

Introduction

What is LNG

Existing LNG Tankers

Tanks

FLNG

Conclusions

Major natural gas trade movements

BP Statistical Review 2008

AGENDA

Introduction

What is LNG

Existing LNG Tankers

Tanks

FLNG

Conclusions

What is LNG? Liquid Natural Gas

Stored at -160 degree Celsius

Density less than 0.5

Traded since 1960’s

Main Export to date Indonesia, Australia,

Algeria

Main Import Market to date Japan

New Exporters Qatar and Nigeria

New Markets Europe and USA

1914 First (U.S.) patent awarded to Godfrey Cabot for LNG handling/shipping.

1917 First commercial natural gas liquefaction plant built in West Virginia.

1959 The world's first LNG tanker, the Methane Pioneer, safely carries LNG

5 km3 from Lake Charles, LA., to Canvey Island, United Kingdom.

1964 British Gas Council imports LNG from Algeria first LNG commercial trade.

1969 United States exports LNG to Asia for the first time: from Alaska to Japan.

1977 Indonesia begins shipping LNG to Japan.

1984 Japan purchases 72% of world’s LNG, using 75% for electricity generation.

1991 First LNG deliveries from Australia’s North West Shelf arrive in Japan and

South Korea.

1999 LNG liquefaction plant opens in Trinidad and Tobago.

2004 The first offshore LNG terminal is approved, Port Pelican..

Brief History

LNG Process

• Number of methods of obtaining LNG

• Proprietary by big name players

• Most common - Pre Cooled Mixed Refrigerant

• New plants in Nigeria, Qatar, Australia

AGENDA

Introduction

What is LNG

Existing LNG Tankers

Tanks

FLNG

Conclusions

MV Methane Pioneer 1959

1959 – January 25th

MV Methane Pioneer departedCalcasieu River on route to UKWith world’s first cargo of LNGLNG capacity 5,000 cubic metres

1968First ship to import LNG to USAin BostonOffload to trucks positioned on barge

1st Purpose Built LNG ShipsShell - 1963/64

Methane Princess at Vickers, Barrow

Methane Progress at Harland and Wolf, Belfast

CONCH Independent Aluminium Tanks

27,000 cubic metre capacity

Traded Algeria – UK from 1964

Over 1,000 voyages to 1990’s

189 x 24 – Steam – 17.5 knots

1964 - First LNG trading Arzew, Algeria to Canvey Island

LNG TANKERS

337 trading (LNG Oneworld 01/02/10)

Order book for 38

Typical size 138,000 cubic metres

270 x 43 x 11.5 d

$165 million typical cost

Q Flex 210,000 cubic metres

315 x 50 x 12 d

Q Max 250,000 cubic metres

345 x 55 x 12 d

LNG TANKERS

Excellent Safety Record

Over 45 years operations

50,000 cargoes

100 million miles sailed

No major spill

No Crew fatality

LNG TANKERS

Perception – LNG is dangerous!

Design assumed it was dangerous

Good Crew and Procedures

Stable Market

42

Main current LNG yards

FPSO capable yards

LNG capable (historically) yards

LNG Shipyards

DSME May 2007

Exxon Mobil

2245

22502244

2247

2246

22432248

2249In Dock

LNG Q vessels

AGENDA

Introduction

What is LNG

Existing LNG Tankers

Tanks

FLNG

Conclusions

LNG TANKS

Two tank types form 99% of fleet

Self Supporting Spherical - Moss Balls

Membrane – Technigaz/GDF

Self Supporting Prismatic - IHI/Samsung

KOGAS

Self Supporting Spherical

Kawasaki LNG Tank

Membrane

Wavespec Web Site

Self Supporting Prismatic

SPB Tank

IHI

AGENDA

Introduction

What is LNG

Existing LNG Tankers

Tanks

FLNG

Conclusions

FPSOLNG

Tanker

LNG

Plant

FLNG

FLNG – Developments

Based on existing tanker size

FLEX – 170,000 cubic metres

New Hull Forms

Shell FLNG

SBM Linde

Hoeogh

Sevan

Mustang

What has been done?

GURF - JIP

AZUR - JIP

Proprietary studies

Moss

Tecnigaz

KUDU

SUNRISE

What is happening?

Safe Offloading of LNG - JIP

Proprietary studies

Flex LNG

HOEGH LNG FPSO

SBM Linde LNG FPSO

Sevan FLNG

Mustang Smart

Shell FLNG

Brazil FLNG

FLNG Issues

Safety

Hull Type

Tank Type

Sloshing

Offloading

Spillage

Fabrication

Safety

Explosion LNG has excellent record

Terrorist Post 9/11

Pollution No significant incidents

Spillage

Collision

Offloading

FLNG Building Blocks

Hull

Tanks

Import

Topsides

Mooring

Offloading

AZURE Concrete

Shell Steel - 470 x 75

Nimitz Class Aircraft Carrier317 x 41 (333 x 77)

Channel Car Ferry130 x 20

VLCC320 x 55

FLNG – size as proposed by Shell470 x 75

Steel Hull

Tank type

Centreline bulkhead

Sloshing

Pumping

Deck protection

FLNG

Tank type

Membrane

Moss

SPB Type 3

FLNG Tanks

FLNG Tanks

FLNG Topsides

Type

Size

Motion response

Import of gas

FLNG Topsides Fabrication

Deck

Height alongside

30 metre freeboard ?

Lift and Skid

Ramp

Float on

Wavespec Web Site

FLNG Mooring

Mooring

Motions

Spread

Turret

FLNG Mooring

Mooring

Motions

Spread

Turret

FLNG Mooring

Mooring

Motions

Spread

Turret

FLNG Mooring

Mooring

Motions

Spread

Turret

FLNG Offloading

Offloading

Existing shore Chicksan

Tandem Stern

Side by side

Cryogenic Hoses

Offloading

SBM

AZURE

OCL Offloading

Side by Side

AGENDA

Introduction

What is LNG

Existing LNG Tankers

Tanks

FLNG

Conclusions

Flex LNG orders M-Flexes at Samsung

Order at Samsung Heavy Industries (SHI) for two LNG carriers to be built to the flexible M-Flex design - Flex LNG design features the self-supporting, prismatic, IMO Type B (SPB) containment system

developed by IHI of Japan

Energy Bridge

ConocoPhillipsNigeria (20 m)

Statoil OPL 218 (1200 m)

Shell Sunrise Timor Sea (100 m)

Offshore Indonesia Possible Prospect

Locations of future Offshore

LNG Production Facilities

Future Offshore LNG Production Terminal

Benign, continuous directional swell Hs 4 – 6 m, soft soils

Benign, infrequent cyclones Hs 7 – 8 m, competent soils

We don’t know

What

We don’t know

Liquefied Natural Gas

Tanks and

Offloading

John KernaghanOffshore Engineering Society, 9th February 2010