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    Establishment and improvement for

    standard system of liquefied natural

    gas industryXing Yun

    Science and Technical Department, CNOOC Gas & Power Group

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    CNOOC Gas & Power Group

    Contents

    2

    0 Preface

    1 Establishment of National and Industrial Standard

    System for LNG Profession

    2 Establishment of the Enterprise Standard System

    for LNG Industry in CNOOC

    3 Collection of LNG Engineering Associated standard

    Series

    4 Participation of International Standardization WG10

    actively5 The Role of LNG Project Standard System in Project

    Quality Management

    6 Conclusion

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    CNOOC Gas & Power Group 3

    Preface

    As Chinas demand for clean energy increasing day by day,imports of high - quality, clean, efficient and convenient

    energy resources - liquid natural gas (LNG) has become a

    important way to improve and optimize chinas energy

    consumption structure, as well as ensure the energy supply

    security and promote the protection of eco-environment.

    Since the early 90s, China National Offshore Oil Corporation

    (CNOOC) start to think about the inport of LNG strategically.Preparatory work of project management for this new

    industry start later, including the research on international

    LNG standards and codes.

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    Preface

    LNG standard system including six parts: international

    standards, state laws and regulations, LNG national standards,

    LNG industry standards, enterprise standards and standards

    relating to LNG construction.

    It plays an important role in building jettys, terminals, storage

    tanks, pipelines, util ities, providing contract quality

    requirements of natural gas and LNG project management.

    In the fol lowing, I wi ll introduce the experiences and practices

    that the standardization management department of CNOOC

    has had in the process of establishing nation/industry/

    enterprise standard system of LNG while entering LNG industry.

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    Contents

    5

    0 Preface

    1 Establishment of National and Industrial Standard

    System for LNG Profession

    2 Establishment of the Enterprise Standard System

    for LNG Industry in CNOOC

    3 Collection of LNG Engineering Associated standard

    series

    4 Participation International Standardization WG10

    actively5 The Role of LNG Project Standard System in Project

    Quality Management

    6 Conclusion

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    CNOOC Gas & Power Group 6

    1 Establishment of National and IndustrialStandard System for LNG Profession

    1.1 Investigation of foreign LNG Standard System

    Since the world's first LNG trade appear in the mid-20th century, the countries

    have attached great importance to the development of relevant standards

    including LNG production, storage and transportation, trade, measuring and

    using, enhancing HSE management, avoiding the risk of HSE and ensuring the

    healthy development of the LNG industry.

    In Europe, the England, Germany etc, has promulgated standards concerning

    the property of LNG product, LNG standards about fire protection, LNG

    Materials standards, LNG equipment and facilities standards, measurement

    standards and so on.

    The U.S. has its own system on LNG standardization construction. U.S.

    National Fire Protection Association (NFPA), American Petroleum Institute(API), American Society of Mechanical Engineers (ASME) set their own

    standards on LNG fire protection safety, LNG production, storage and

    transportation, processing, LNG equipment and materials standards

    respectively.

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    Japan is the largest LNG importer in the world, accounting for

    40% of the total import of the world. Japan has accumulated a

    large number of LNG operation data. Japan Gas Association

    (JGS), Japanese Industrial Standards (JIS), Japan Electric

    Association and the Japan High Pressure Gas Safety Institute

    contribute to the construction of LNG standardization respectively,and erect their own series of standards. Some of these standards

    has also been applied in South Korea and China Taiwan region.

    Standards in these countries, especially the standards of Europe

    and the U.S. have been widely used in design, construction and

    acceptance of CNOOCs LNG projects. It plays an important role in

    the beginning of Chinas LNG industry.

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    According to the condition of established LNGstandards in different countries, the ISO founded a LNG

    standardization workgroup (WG10) in November, 2006.

    The main work is to draft the standard for LNG facilities

    and materials and to coordinate the LNG standards

    which are famous and universal used in the world. Its a

    very good method to track the international LNG

    standards. The three big National petroleum companiesof China all send representatives to attend the WG10

    steering committee.

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    The main work of WG10 workgroup is following:

    a. To evaluate the need of standard and criterion of LNG indifferent countries.

    b. To evaluate the applicability of existing international LNGstandards and criterions in LNG industry.

    c. To ascertain the cooperation frame of the existing LNGstandards and criterions owners with workgroup.

    d. To ascertain the order of standard establishment.

    With the organization and coordination of WG10 LNG standardtechnical committee, the international LNG standard system will

    gradually unify and perfect, which will promote the developmentof standardization of Chinese LNG industry. Table 1 was Thegathering standards of WG10 are from CENIBCIMONFPAASMEAPIIPCSADINBSJGA JISKHKKLKand so on.

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    Table 1 Internationally available with the LNG industry-related standards

    NO. Categories Reference Name

    1 Products EN

    1160:1996General characteristics of liquefied natural gas

    2

    Marine

    Transport

    IBC Code

    International Code for the Construction and Equipment of Ships

    Carrying Dangerous Chemicals in Bulk.

    3 IGC Code

    (IMO)

    International Code for the Construction and Equipment of

    Ships Carrying Liquefied Gases in Bulk.

    4

    GCC

    Gas Carrier Code produced first by IMCO and subsequently by

    IMO. Contains a chapter 11 called Fire protection and fireextinction

    5 EN

    1532:1997

    Installation and equipment for liquefied natural gas -Ship to shore

    interface

    6

    Car

    Transport

    NFPA 52 Compressed Natural Gas (CNG) Vehicular Fuel Systems Code

    7 NFPA 54 Natural Fuel Gas Code

    8 NFPA 57 Liquefied Natural Gas (LNG) vehicular Fuel Systems Code

    9 NFPA 30 A Motor Fuel Dispensing Facilities and Repair Garages

    10NFPA 37

    Installation and Use of stationary Combustion Engines and Gas

    Turbines

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    Table 1 Internationally available with the LNG industry-related standards

    NO. Categories

    Standard

    Number Name11

    ProductionStorage andTransporta

    -tion

    ASME B 31.8 Gas Transmission & Distr ibut ion Piping Syst em

    12 NFPA 59A Standard for the production, storage, and handling of LNG

    13 NFPA

    59A:2006Standard for the production, storage, and handling of LNG

    14 CSA

    Z276:2001LNG Product ion, Storage and handling

    15NFPA 59

    Storage and Handling of Liquefied Petroleum gases at Utility Gas Plants

    16 JGA Recommended practice for LNG aboveground storage

    17 EN14620 Flat-bottomed, vertical cylindrical storage tanks for low temperature service,

    18 DIN 4119,

    part 1

    Above-ground Cylindr ical Flat-bot tomed Tank Installations of Metal lic

    Materials

    19 API Std. 2000 Venting Atmospheric and Low Pressure Storage Tanks : Non-refrigerated andRefrigerated

    20

    CEN TC265

    Design and manufacture of site built , vertical, cylindri cal, flat bottomed steeltanks for the storage of refrigerated liquefied gases with operating

    temperatures between 5C and 165C21 API Std. 620 Design and Construct ion of Large, Welded, Low-pressure Storage Tanks

    22 EN 13645:2001 Design of onshore installations with a storage capacity between 5 t and 200 t

    23 JGA Recommended practice for LNG in-ground storage

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    Table 1 Internationally available with the LNG industry-related standards

    NO. Categor ies StandardNumber

    Name

    24

    Facilities

    JGA Recommended practice for LNG facilities, April 1986

    25 API Std

    2510Design & Construct ion of LPG installations

    26 EN

    12308:1998Suitability testing of gaskets designed for flanged joints used on LNG piping

    27 EN1473:1997

    Design of onshore installations

    28 EN

    1474:1997Design and testing of loading/unloading arms

    29 EN

    12838:2000Suitability testing of LNG sampling systems

    30CEN TC218 Rubber and pl astics hoses and hose assemblies

    31 EN ISO

    4080: 1995

    Determination Rubber and plastics hoses and hose assemblies

    of permeability

    32CEN TC342

    Metal hoses, hose assemblies, bellows and expansion joints EN ISO 10380:2003

    33 EN

    12066:1997Testing of i nsulating li nings for LNG impounding areas

    34 EN ISO

    10806:2003pipeworkfittings of undulatory flexible metal tubing

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    Table 1 Internationally available with the LNG industry-related standards

    NO.Categories

    Standard

    Number Name

    35

    Fire safety

    control

    NFPA 1 Fire Prevention Code

    36 NFPA 30 Flammable and Combustible Liquids Code

    37 IP Code Part 15 Area Classification Code for Petroleum Installations

    38API Std 2510A

    Fire and protection considerations for the design and operation of li quefied

    petroleum gases (LPG) storage facilities

    39 NFPA 11 Low-Medium-and High-Expansion Foam40 NFPA 11C Mobile Foam Apparatus

    41 NFPA 13 Standard for the Installation of Sprinkler Systems

    42 NFPA 15 Water spray fixed systems

    43 NFPA 16 Installation of Deluge Foam - Water Sprinkler and Foam - Water Spray Systems

    44 NFPA 17 Dry Chemical Extinguishing Systems

    45 NFPA 18 Standard on wetting agents

    46NFPA 307

    Standard for the Construction and Fire Protection of Marine Terminals, Piers

    and Wharves

    47NFPA 497

    Classification of f lammable Liquids, Gases or Vapours and of Hazardous

    (Classified) Locations for Electrical Installations in Chemical Process Areas

    48 NFPA 921 Guide for Fire and Explosion Investigations

    49 NFPA 1405 Land-Based Fire Fighters Who Respond to Marine Vessel Fires

    50

    EN 12065:1997

    Testing o f foam concentrates designed for generation of medium & hi gh

    expansion foam and of extinguishing powders used on LNG fire

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    1.2 The necessity of making national standard system OFLNG

    1.2.1 The development of the LNG industry needs standards

    The production of the global LNG is expected to increase from 300million tons in 2010 to 600 million tons in 2020, the related investmentof the construction of new gasification plant and liquefaction plan will

    come to 1500 million -2000 million U.S. $ (at current prices), China is tobe the important importing country in respect of LNG.

    The standard will be the common language among exporters, importers,investors, manufacturers, design engineering and users. It is also thebase of minimizing capital investment and ensuring safety.

    At the technical level, new equipment ,new technology and new concept(marine LNGModule designFloating gasification system) appearcontinuously, the rational selection and application need thecorresponding standards and specification.

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    1.2.2 The standardization of internal LNG industry must accord

    with the international standard.

    There is mature technology and perfect standard during the LNG

    industry abroad. Its a shortcut to refers to external advanced standard

    directly to rapidly develop and boost the level of internal LNG industry.

    As the first internal LNG pilot project, extensive research survey forexternal LNG standard, correlative jetty, receiving terminals, storage

    tanks, pipelines and civilian building standard was actualized during its

    preliminary research, design, construction and commissioning. The

    LNG standard system table of our country that will become the

    instructor of constituting the internal LNG industry standard henceforthis compiled. During the process, the internal standard is employed if

    there is appropriate one. If there is not appropriate standard for LNG at

    home, the foreign advanced one will be cited.

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    1.3 Nation and Industry the LNG standard system table

    According to the above guiding concept and authorized pr inciple, especially

    according to the LNG project practice in Guangdong and Fujian, the work

    group has investigated the foreign LNG standard system systematically since

    2000. The study consists of three stages. Firstly, we collected and gathered the

    foreign standards. Secondly, the core standards are validated and translated.

    Whats more, we investigated and compared the standards, and then wrote the

    report.

    So far, we have workout the third edition < The table of Nation and Industry

    LNG Standard System >, as shown in table 2. In the table, the core criterion of

    analyzing-measuring and product ion-storage/transportation are shown. Also,

    the products standards and the HSE cri terion which were lack in China is paid

    attention.

    Until today, according to the system table, we have worked out several system

    standards of nation and industry: seven volumes promulgated, one copy on

    approval, nine reports for approval, one volume in formulation, three volumes

    in the prior study, and the others in planning collect.

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    Table2 The Nation and Industry LNG StandardSystem table

    NO. Categories Standard NameStandard Number

    should be level

    StandardCriteria

    have beenadopted Code

    Standard

    level

    currentstate remarks

    1

    Common

    General characteristics of liquefied

    natural gasGB/T 19204-2003 EN 11601997 IDT Release

    2010 remake a

    plan

    2Refrigerated light hydrocarbon fluids -

    Sampling of liquefied natural gas

    - Continuous method

    GB/T 20603-2006 ISO 8943 IDT Release

    3 Terminology of liquefied natural gas SY/Tpre-feasibility

    study

    2010 plan

    4the guidebook for drawing up

    application report of liquefied

    natural gas project

    SY/T

    2009plan

    5

    Analysis

    Measurement

    Refrigerated h ydrocarbon liq uids;

    static measurement; calculationprocedure

    GB/T ISO 6578 MOD

    Release

    Candidate 2007plan

    6

    Refrigerated light hydrocarbon fluids -

    Liquefied natural gas - Procedure

    for custody transfer on board

    ship

    GB/T ISO 133981997 MOD ReleaseCandidate

    2007plan

    7Standard specification for LNG

    density calculation modelsGB/T21068-2007 ASTM D4784-93 IDT Release

    8

    Refrigerated light hydrocarbon fluids ;

    measurement of temperature in

    tanks containing liquefied gases;

    resistance thermometers and

    thermocouples

    GB/T ISO 8310 IDT Release2007plan

    9

    Refrigerated light hydrocarbon fluids ;

    calibration of membrane tanks

    and indepedent prismatic tanks

    in ships ; physical measurement

    GB/T ISO 8311 IDT Release2007plan

    10

    Refrigerated light -hydrocarbon flu ids;

    calibration of spherical tanks in

    ships; part 1: st ereo-

    photogrammetry

    GB/T ISO 9091-1 IDTRelease

    Candidate2007plan

    Notes: In the sheet of standard coherence and standard codes adopted IDT-equate standard adopted , MOD- modified standard adopted GB-nationalstandard SY-industrial standard, others are criterion codes

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    Table2 The LNG standard system table of nationand industry

    11

    Analys is

    Measure-

    Ment

    Refrigerated light hydrocarbon fluids -- Measurement of

    liquid levels in tanks containing li quefied gases --Electrical capacitance gauges

    GB/T ISO 8309 IDT Bereleased

    2007 plan

    12

    Refrigerated light-hydrocarbon fluids -- Measurement of

    liquid levels in tanks containing li quefied gases --

    Float-type level gauges

    GB/T ISO 10574 IDTRelease

    Candidate2007 plan

    13

    Refrigerated light hydrocarbon fluids; calibration of

    spherical tanks in ships; p art 2: triangulation

    measurement

    GB/T ISO 9091-2 IDT

    14

    Refrigerated light hydrocarbon fluids -- Measurement of

    liquid levels in tanks containing li quefied gases --

    Microwave-type level gauge

    GB/T ISO 13689 2010 plan

    15

    Refrigerated light hydrocarbon fluids - General

    requirements for automatic level gauges - Part 1:

    Gauges onboard ships carrying liquefied gases

    GB/T ISO 18132-1-2006 IDT 2011 plan

    16

    Refrigerated light hydrocarbon fluids - General

    requirements for automatic level gauges - Part 2:

    refrigerated Level gauge for shore-based stor age

    tank

    GB/T ISO 18132-2-2006 IDT 2011 plan

    17

    Production

    Storage

    and

    Transporta

    -tion

    Production, storage and handling of Liquefied Natural

    Gas (LNG)

    GB/T 20368-

    2006NFPA 59A IDT

    Release

    (Amendment )

    18Liquefied Natural Gas (LNG) Vehicular

    Fuel Systems CodeGB/T NFPA 57 IDT

    pre-feasibility

    study2009 plan

    19Installation and equipment for liquefied natural gas -

    Design of onshore installationsGB/T EN 1473 MOD

    examine and

    approve2007 plan

    20Installation and equipment for liquefied natural gas -

    Ship to sh ore interfaceGB/T EN 1532 IDT

    Release

    Candidate2007 plan

    21Design and manufacture of sit e built, vertical,

    cylindrical, flat-bottomed steel tanks (Part 1~5)GB/T EN 14620 MOD constituted

    2009 plan have

    made known

    NO

    .Categories Standard Name

    StandardNumber/

    should be level

    Standard criteriahave been adopted

    CodeStandard

    level

    current

    state remarks

    Notes: In the sheet of standard coherence and standard codes adopted IDT-equate standard adopted , MOD- modified standard adopted GB-nationalstandard SY-industrial standard, others are criterion codes

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    22

    Production

    Storage

    and

    Transporta

    tion

    Design and Construction of Large,

    Welded, Low-Pressure Storage Tanks

    SY/T0608-

    2006

    API Std

    620:2002MOD Release

    23 Structural use of concrete GB/T BS 8110 IDT

    24

    FIP 1993 Report o f the International

    Associat ion o f Prest ressed Typical

    design specification of prestressed

    concrete structures

    GB/TCEB-

    FIP:1990IDT

    25Design Specification for Liquefied Natural

    Gas Port and Jetty

    JTJ 304-

    2003

    Release

    (Amendment )

    Industry

    Standard

    26 Tank cont ainers for liquefied natural gasJB/T 4780-

    2002Release

    Industry

    Standard

    27

    Installation and equipment for liquefied

    natural gas - Design and testing of

    loading/unloading arms

    GB/TBS EN

    1474-1997IDT 2009 plan

    28Liquefied Natural Gas Underground

    Storage Tank

    29

    safety

    Technical safety code for liquefied

    natural gas receiving terminal

    SY/T 6711-

    2008Release

    30 Technical safety code for liquefiednatural gas receiving terminal

    SY pre-feasibilitystudy

    31Safety operation specification for

    liquefied natural gas Port and JetlySY

    pre-feasibility

    study

    32Periodic inspection specification for

    terminal of li quefied natural gasSY

    pre-feasibility

    study

    33energy-

    savingmake use of cold energy SY/T

    NO Categories Standard NameStandardNumber/

    should belevel

    Standardcriteria

    have beenadopted

    Code

    Standard

    level

    current

    stateremarks

    Notes: In the sheet of standard coherence and standard codes adopted IDT-equate standard adopted , MOD- modified standard adopted GB-

    national standard SY-industrial standard, others are criterion codes

    Table2 The LNG standard system table of nationand industry

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    Contents

    2

    0 Preface

    1 Establishment of National and Industrial Standard

    System for LNG Profession

    2 Establishment of the Enterprise Standard System

    for LNG Industry in CNOOC

    3 Collection of LNG Engineering Associated standard

    series

    4 Participation International Standardization WG10

    actively

    5 The Role of LNG Project Standard System in Project

    Quality Management

    6 Conclusion

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    2 Establishment of the Enterprise StandardSystem for LNG Industry in CNOOC

    2.1 LNG Enterprise Standard System Compilation

    2.1.1 System Compilation

    LNG Project management could be categorized into:

    Previous Stage which consists of Market Investigation, Pre-feasibility Study,Feasibility Study and Project Establishment Application,

    Middle Stage which consists of FEED, Detailed Design and Construction,Later stage which consists of Examination and Acceptance andCommissioning.

    Current oversea standard and domestic project associated standard cant

    satisfy the requirements of all the phases of LNG project, especially lacks

    relevant standards of early stage, middle and later stage of projectmanagement which has Chinese characteristics. CNOOC takes the lead to

    invest in construction of the first several LNG projects of China and gained

    rich experience, which lays foundation for the compilation of enterprise

    standards.

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    Type Standard Name Year of CompletionFoundation

    type

    1.Standardization Management Promulgated

    2.Standard Compilation Implementing Regulations Promulgated

    3.LNG Project Management Manual 2009

    Project

    Prophase

    Study

    4.LNG Project Opportunity Study Report

    Compilation Instructions

    planning

    5.LNG Project Pre-feasibility Study Report

    Compilation Instructions

    planning

    6.LNG Project Feasibility Study Report

    Compilation Instructions

    2009

    7. LNG Project Establishment Application Report

    Compilation Instructions

    Promulgated

    8. LNG Project Safety Pre-Evaluation ReportCompilation Instructions

    Promulgated

    Design Phase

    9.LNG Receiving Terminal Layout planning

    10.LNG Project Engineering Preliminary Design

    Documentation Compilation Instructions

    planning

    Table 3: CNOOC LNG Enterprise Standard System

    2 Establishment of the Enterprise StandardSystem for LNG Industry in CNOOC

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    Type Standard Name Year of Completion

    Acceptance

    Phase

    11.LNG Project Acceptance Regulations The 1st Part

    Receiving Terminal Engineering

    Promulgated

    12. LNG Project Acceptance Regulations The 2nd Part

    Harbour Engineering (2008)

    promulgated

    13. LNG Project Acceptance Regulations The 3nd Part

    Pipeline Engineering

    promulgated

    14. Evaluation Report Compilation Instructions of LNG

    Trunkline Completion and Acceptance

    Health,

    Safety and

    Enviroment

    15.LNG Project Safety Technology Regulations Promulgated

    16.LNG Project HSE Management Manual

    Economic

    Evaluation

    Type

    17.Compilation Instructions of LNG Project Feasibility

    Study of Investment Budget

    promulgated

    18.Compilation Instructions of LNG Project Feasibility

    Study of other Investment Budget

    promulgated

    19.LNG Project Investment Budget Index 2009

    20.LNG Project Economic Evaluation Methods and

    Parameters

    2009

    21.LNG Project Engineering Quantity Lists Pricing Model 2009

    2 Establishment of the Enterprise StandardSystem for LNG Industry in CNOOC

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    Contents

    25

    0 Preface

    1 Establishment of National and Industrial Standard

    System for LNG Profession

    2 Establishment of the Enterprise Standard System

    for LNG industry in CNOOC

    3 Collection of LNG Engineering Associated standard

    series

    4 Participation International Standardization WG10

    actively

    5 The Role of LNG Project Standard System in Project

    Quality Management

    6 Conclusion

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    3.2 Standard System Classification

    As the regular LNG engineering includes four parts: receiving terminal(including tank), jetty, pipeline, and utilities, the classification will be carriedout in accordance with function with this as the main line, e.g.

    Jetty falls into: general chart, shipping, navigation channel, breakwater, jettyengineering, navigation channel safety;

    Receiving terminal falls into: gasification technology, tank, equipment andinstallation, materials, manifold, metering;

    Pipeline falls into: pipeline engineering, pipeline crossing, pipelineanticorrosion, electric communication, foundation anti-earthquake, firealarm;

    Utilities falls into: construction structure, water supply and drainage, heatingand ventilating, building lighting, safety and environment, constructionfoundation etc.

    The following could be divided into products, design and construction. LNGprofessional standards are 21, jetty 22, receiving terminal 661, tank 13,pipeline 98, HSE 328(see chart 2), altogether 1140.

    3 Collation of LNG EngineeringAssociated Standard Series

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    Standard System Classification

    receiving terminaljetty pipeline utilities

    3 Collation of LNG EngineeringAssociated Standard Series

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    Contents

    29

    0 Preface

    1 Establishment of National and Industrial Standard

    System for LNG Profession

    2 Establishment of the Enterprise Standard System

    for LNG Industry in CNOOC

    3 Collection of LNG Engineering Associated standard

    series

    4 Participation International Standardization WG10

    actively

    5 The Role of LNG Project Standard System in Project

    Quality Management

    6 Conclusion

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    CNOOC Gas & Power Group 3

    4 Participate International Standardization WG10actively

    Conducting LNG Standard System Study is the necessity in

    Chinese LNG production and market, and its needful overseasand domestic situation development.

    The situation requires LNG standard system to get integrated

    into international cri teria, adjust correspondingly and create

    Chinas own LNG standard system, and makes i t the

    indispensable, internationalized and competitive LNG

    standardization guiding documents in overseas and domestic oil

    and gas markets. It can be utilized to speed up LNG industry and

    standardization process and guide state, industry and enterprise

    LNG standards enactment and revision in future.

    In 2006, ISO set up LNG working team in T67 technology

    commission which is of the same characteristic with our current

    LNG sub-technology commission. Therefore, taking part in WG10

    actively is very helpful.

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    As China is the member country and permanent member of ISO, together

    with the fact that China is at preliminary stage of building LNG project based

    on ISO and European and American .So we decide to take international

    standard and overseas advanced standard like ISO, EN, etc. to erect

    Chinas own LNG standard system.

    Therefore, participating ISO/T67/WG10 is the main road to get our current

    LNG standardization internationalized.

    4 Participate International Standardization WG10actively

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    American

    standardsEuropeanstandards

    Japanesestandards

    Other

    countries

    and areasstandards

    ISOstandards

    4 Participate International Standardization WG10actively

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    Contents

    34

    0 Preface

    1 Establishment of National and Industrial Standard

    System for LNG Profession

    2 Establishment of the Enterprise Standard System

    for LNG industry in CNOOC

    3 Collection of LNG Engineering Associated standard

    series

    4 Participation International Standardization WG10

    actively

    5 The Role of LNG Project Standard System in Project

    Quality Management

    6 Conclusion

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    5 The Role of LNG Project Standard System inProject Quality Management

    5.1 The Role of LNG Project Standard System in Project Quality

    Management

    5.1.1 The main Contribut ion of International/National LNG

    Professional Standard

    a. LNG Resources

    LNG Resources are the foundation of project establishment application.

    How to secure qualified LNG resources needs to regulate the

    specifications by standard. Relying on LNG General Specification byISO resolves the issue of Specification and usage safety during

    resources selection and provides important reference index for

    resources negotiations.

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    b. LNG Tank Construction

    LNG Tank is the key part of Project. China has never been involved in thisengineering before and lacks such kind of standards. Relying onCryogenic Temperature Vertical Flat Bottom Cylinder Type Tank by ISOEN standard and Design and Construction of Large Sized Welding LowTemperature Tank by American API standard and LNG Equipment andInstallation by European Union standard provide valuable design,

    construction and acceptance regulations for LNG Project key engineering.

    c. LNG Measurement

    During commissioning process, LNG measurement must be consistent withinternational standard. We not only should pay attention to the LNGvolume and weight measurement but also should focus on LNG energy

    value measurement, for different LNG composition could influence theenergy value is the main deciding factor of price. Currently, energymeasurement is generally used internationally and we select frominternationally used measurement standard so as to cooperate andcommunicate with international counterparts more easily.

    5 The Role of LNG Project Standard System inProject Quality Management

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    f G S S

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    b. Project Management

    LNG project management is a comprehensive management process

    relating to project progress, budget, quality and HSE. We cant 100% copyoverseas project management experience and practice, and have tosummarize and improve based on our own project practice so that we canuse it in our future LNG Project.

    We are in the process of compiling LNG Project Management Manual basedon Dapeng and Fujian LNG Project practice, which wil l offer reference for

    future LNG project quality management.c. LNG Project Acceptance

    After invest igation and project running, we find post evaluation of LNGproject engineering completion and acceptance and LNG trunklinecompletion and acceptance also has no international reference. Therefore,we start to compile enterprise standards like LNG Project Engineering

    Completion and Acceptance and LNG Trunkline Completion andAcceptance based on Dapeng an Fujian LNG project practice, which willprovide method and tools for project later stage quality management .

    Currently, the receiving terminal, jetty and pipeline separate index of LNGProject Engineering Completion and Acceptance has been submitted toCNOOC headquarter for review and wi ll be released.

    5 The Role of LNG Project Standard System inProject Quality Management

    5 Th R l f LNG P j t St d d S t i

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    In short, International/State/Industry Standard and Enterprise standard

    system cover different aspects of LNG project phases.

    Currently, the international, state , industry and enterprise standard

    system serials with respect to jetty, receiving terminal, pipeline andutilities basically cover each engineering and each phases of LNG

    introduced project quality management .But state standard and

    enterprise standard still need to be improved, especially the industry

    standard need each enterprises companies who come into the LNG

    industry concerted efforts.

    5 The Role of LNG Project Standard System inProject Quality Management

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    Contents

    4

    0 Preface

    1 Establishment of National and Industrial Standard

    System for LNG Profession

    2 Establishment of the Enterprise Standard System

    for LNG industry in CNOOC

    3 Collection of LNG Engineering Associated standard

    series

    4 Participation International Standardization WG10

    actively

    5 The Role of LNG Project Standard System in Project

    Quality Management

    6 Conclusion

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    THANKS FOR

    YOUR ATTENTION!