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LNG RECEIVING AND REGASIFICATION

TERMINALS
An Overview of Design, Operation and
Project Development Considerations

Ram R. Tarakad, Ph.D., P.E.

Published and distributed by

Zeus Development Corporation


2424 Wilcrest Drive, Suite 100
Houston, Texas 77042
Ph: 713-952-9500
Fax: 713-952-9526

ACKNOWLEDGMENTS
The author and the publisher sincerely acknowledge the following contributions to this
book report:
1.
2.
3.

Korea Gas Corporation, for providing photographs of the Inchon and Pyongtaek
LNG Terminals, and for giving permission to reproduce the information presented
in Appendix A.
Trunkline LNG Company (Southern Union Co.) for giving permission to take
photographs of their Lake Charles, Louisiana, LNG terminal.
Mr. Bill Haesloop for reviewing the chapter on LNG Pumpout, and to Ebara
International for providing cut-away views of submerged-motor LNG pumps.

Copyright 2000, 2003 Zeus Development Corporation.


Revised Edition

This book report is intended solely for the internal use of the purchasing individual or
organization. It may not be photocopied or otherwise reproduced, in any form, including
electronic. The purchaser agrees to take all reasonable precautions to prevent
unauthorized copying or reproduction.

The information contained in the report is believed to be generally correct. However,


neither the author nor the publisher assumes any responsibility for the accuracy and
completeness of this information.

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ABOUT THE AUTHOR


Ram R. Tarakad was director, development engineering with Enron India. He has been
working in the gas/LNG/GTL industry for over 23 years. Prior to joining Enron, Mr.
Tarakad had a 20-year career with the Kellogg Brown & Root group of companies.
During this period he held technical and management positions in Process Engineering,
Technology Development, Engineering Management and Business Management. He has
been associated with a number of international projects in the U.S., Algeria, Australia,
Japan and Malaysia.
A Chemical Engineer by training, Mr. Tarakad completed his undergraduate studies at
the Indian Institute of Technology in Bombay. Subsequently, he did post-graduate studies
in the United States, including a Ph.D. from the Pennsylvania State University. He has
authored a number of papers, and holds three U.S. patents.

ABOUT ZEUS DEVELOPMENT CORPORATION


Founded in 1991, Houston-based Zeus Development Corporation is a research
consultancy and central information clearinghouse for business-related research, news
and information concerning world-wide natural gas development and information
technology for the E&P industry.
Zeus provides strategic research services through multi-client and single-client consulting
engagements and reports, publishes three newsletters (LNG Express, Remote Gas
Strategies, Upstream CIO) and directories, and organizes conferences and workshops.
Specific markets of coverage in the natural gas development industry include not only
liquefied natural gas (LNG) but also CNG ocean transport; offshore high-voltage direct
current (HVDC) power generation and transmission; natural gas fuel cells; FischerTropsch (FT) synthesis, dimethyl ether (DME) and methanol (collectively GTL);
international pipelines; ammonia; aluminum smelting; direct iron reduction (DRI);
desalination; and carbon black. Information is available at www.LNGExpress.com and
www.RemoteGasStrategies.com.
Areas of coverage in E&P information technology include enterprise application
integration; supply-chain integration; intelligent well and field automation systems; data
management; and other information technologies offering strategic advantages to
exploration and production companies. Information is available at
www.UpstreamCIO.com.

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TABLE OF CONTENTS
CHAPTER 1
BACKGROUND ...................................................................................................................................1-1
CHAPTER 2
OVERVIEW OF TYPICAL LNG IMPORT TERMINAL ...................................................................2-1
Unloading System ........................................................................................................................... 2-2
Storage System................................................................................................................................ 2-3
LNG Pumpout System..................................................................................................................... 2-3
Boil-Off Gas Generation and Handling ......................................................................................... 2-4
LNG Vaporization........................................................................................................................... 2-4
Utilities ........................................................................................................................................... 2-5
Offsite and Support Facilities......................................................................................................... 2-5
CHAPTER 3
SITE SELECTION ................................................................................................................................3-1
Proximity to End User .................................................................................................................... 3-1
Proximity to Population Centers and Local Perceptions ............................................................... 3-1
Ecological Considerations.............................................................................................................. 3-2
Land Availability ............................................................................................................................ 3-3
Likelihood of Capacity Expansion.................................................................................................. 3-3
Environmental Factors ................................................................................................................... 3-3
Meteorological Conditions ............................................................................................................. 3-4
Bathymetric and Oceanographic Conditions ................................................................................. 3-5
Soils, Geotechnical and Seismicity Data ........................................................................................ 3-5
Land Topography ........................................................................................................................... 3-6
Access to Construction Materials and Labor ................................................................................. 3-6
Access to Infrastructure and Utilities ............................................................................................. 3-6
CHAPTER 4
CODES AND STANDARDS ...............................................................................................................4-1
The United States............................................................................................................................ 4-1
Other Countries .............................................................................................................................. 4-2
Some Useful Addresses ................................................................................................................... 4-2
CHAPTER 5
JETTY AND MARINE FACILITIES...................................................................................................5-1
Ship Size.......................................................................................................................................... 5-1
Berth Occupancy ............................................................................................................................ 5-1
Components of Jetty and Marine Facilities.................................................................................... 5-2
Safety in Port and Jetty Design ...................................................................................................... 5-3
CHAPTER 6
SHIP-SHORE INTERFACE AND TRANSFER PIPING ....................................................................6-1
LNG Unloading Arms..................................................................................................................... 6-1
Unloading Line ............................................................................................................................... 6-2
Special Considerations for Unloading Line Piping........................................................................ 6-3

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CHAPTER 7
LNG STORAGE TANKS .....................................................................................................................7-1
Total Storage Capacity ................................................................................................................... 7-1
Number of Tanks............................................................................................................................. 7-2
Types of Containment ..................................................................................................................... 7-3
Applicable Codes............................................................................................................................ 7-6
Other Important Considerations..................................................................................................... 7-7
CHAPTER 8
TERMINAL VAPOR HANDLING ......................................................................................................8-1
Sources of Boil-off Gas: Unloading Mode ..................................................................................... 8-1
Sources of Boil-off Gas: Holding Mode ......................................................................................... 8-4
Tabulation of Typical Boil-off Gas Rates ....................................................................................... 8-5
Boil-Off Gas Compression.............................................................................................................. 8-6
Disposition of Boil-Off Gas ............................................................................................................ 8-7
CHAPTER 9
PUMPOUT SYSTEM............................................................................................................................9-1
Submerged Electric Motors ............................................................................................................ 9-1
Ball Bearings .................................................................................................................................. 9-1
Suction Vessel-Mounted Design ..................................................................................................... 9-2
Retractable In-Tank Mounting for Installation within Tanks ......................................................... 9-2
Special Materials of Construction .................................................................................................. 9-4
Testing ............................................................................................................................................ 9-4
Cooldown and Start-up Considerations ......................................................................................... 9-5
Size Considerations ........................................................................................................................ 9-5
CHAPTER 10
VAPORIZATION ...............................................................................................................................10-1
Open Rack Vaporizer (ORV) ........................................................................................................ 10-1
Submerged Combustion Vaporizer (SCV) .................................................................................... 10-3
Sample Economic Comparison of ORV and SCV......................................................................... 10-4
CHAPTER 11
UTILITY AND OFFSITE UNITS ......................................................................................................11-1
Electric Power .............................................................................................................................. 11-1
Fuel Gas ....................................................................................................................................... 11-2
Seawater ....................................................................................................................................... 11-2
Instrument Air and Plant Air ........................................................................................................ 11-3
Nitrogen ........................................................................................................................................ 11-3
Fresh Water, Potable Water ......................................................................................................... 11-3
Emergency Power......................................................................................................................... 11-4
Flare and Vent System .................................................................................................................. 11-4
Waste Water Disposal .................................................................................................................. 11-5
Odorization System....................................................................................................................... 11-5
Metering System ........................................................................................................................... 11-5

CHAPTER 12
SAFETY AND FIRE PROTECTION .................................................................................................12-1
LNG Hazards................................................................................................................................ 12-1
Safety Protection Systems ............................................................................................................. 12-2
Passive Safety Systems.................................................................................................................. 12-2
Active Safety ................................................................................................................................12-3
Fire-Fighting and Protection ...................................................................................................... 12-4
Safety in Operation....................................................................................................................... 12-6
CHAPTER 13
INSULATION.....................................................................................................................................13-1
Criteria for Effective Insulation Systems ...................................................................................... 13-1
Properties of Low-Temperature Insulation .................................................................................. 13-1
Vapor Barriers.............................................................................................................................. 13-2
Fire Behavior................................................................................................................................ 13-3
Installation of Insulation .............................................................................................................. 13-3
CHAPTER 14 ........................................................................................................................................ 14-1
PURGING, DRYOUT AND COOLDOWN.......................................................................................14-1
Purging ......................................................................................................................................... 14-1
Dryout........................................................................................................................................... 14-2
Cooldown...................................................................................................................................... 14-4
CHAPTER 15 ........................................................................................................................................ 15-1
PROJECT DEVELOPMENT AND IMPLEMENTATION................................................................15-1
Initial Feasibility Studies.............................................................................................................. 15-2
Site Selection, Basic Design and Detailed Feasibility Report ...................................................... 15-2
Front-End Engineering Design .................................................................................................... 15-3
Project Management Consultant .................................................................................................. 15-6
Evaluation of EPCC Contractor and Award of Contract............................................................. 15-7
Project Financing ......................................................................................................................... 15-7
Project Execution ......................................................................................................................... 15-7
CHAPTER 16 ........................................................................................................................................ 16-1
CAPITAL AND OPERATING COSTS..............................................................................................16-1
Capital CostsGeneral Observations.......................................................................................... 16-1
Typical Capital Cost ..................................................................................................................... 16-1
Operating Costs............................................................................................................................ 16-4
CHAPTER 17 ........................................................................................................................................ 17-1
ENERGY INTEGRATION.................................................................................................................17-1
Use of LNG Cold .......................................................................................................................... 17-1
Air Separation............................................................................................................................... 17-1
Liquid Carbon Dioxide, Air Conditioning, Food Freezing .......................................................... 17-2
Inlet Air Cooling for Power Generation Gas Turbine.................................................................. 17-3
Power Generation Using LNG Cold Potential......................................................................... 17-3
Recovery of Heat Energy .............................................................................................................. 17-5
CHAPTER 18 ........................................................................................................................................ 18-1
LNG COMPOSITION ..............................................................................................................................18-1
Fractionation ................................................................................................................................ 18-1
Nitrogen Dilution.......................................................................................................................... 18-2

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APPENDICES
APPENDIX A

Korea Gas Corporations Inchon Terminal: Layout, Flow Scheme, Equipment


Summary and Expansion Phases

APPENDIX B

List of Baseload LNG Import Terminals

APPENDIX C

List of Leading Engineering Contractors and Tank Contractors for Baseload LNG
Receiving Terminals

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LIST OF TABLES
TABLE 8-1

Boil-Off Gas SourcesTypical Case Study

TABLE 10-1

Economic Comparison of Open Rack vs Submerged Combustion Vaporizers

TABLE 13-1

Comparison of Thermal Conductivity and Water Permeability for Common


Cryogenic Insulation Materials

TABLE 14-1

Approximate Moisture Content of Air as a Function of Dew Point (at atmospheric


pressure)

TABLE 15-1

Typical List of Design Basis Parameters to be Defined for Basic Design

TABLE 15-2

Typical Project Development and Execution Schedule for LNG Receiving Terminal

TABLE 16-1

Cost Breakdown from Recent Study for South Asia Location

TABLE 16-2

Cost Data from Table 16-1 (Adjusted for Different Configuration)

TABLE 16-3

Localization Cost IndexIndicative Figures (USGC = 1.0)

TABLE 16-4

Estimated Operating Costs for Terminal Described in Table 16-1

TABLE 17-1

Typical Air-Liquefaction Capacities Using Refrigeration from LNG

TABLE 17-2

Typical LNG Usage for Small-Scale Cold Utilization Applications

TABLE 17-3

Sample Data for Electric Power Generation Using LNG Cold Potential

TABLE 17-4

Example of Combined Heat and Power Recovery Effectiveness

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LIST OF FIGURES
FIGURE 2-1

Overview of Components of LNG Regasification Terminal

FIGURE 2-2

LNG Receiving Terminal Simplified Flow Scheme

FIGURE 6-1

Schematic of LNG Recirculation Circuit

FIGURE 7-1

Features of a Typical Single-Containment LNG Tank

FIGURE 7-2

Features of a Typical Double-Containment LNG Tank

FIGURE 7-3

Features of a Typical Full-Containment LNG Tank

FIGURE 7-4

Impact of Tank Type and Hydrotest Requirements on Cost

FIGURE 9-1

Sectional View of Typical Submerged-Motor LNG Pump

FIGURE 9-2

In-tank Retractable Submerged Pump and Associated Auxiliaries

FIGURE 10-1

Schematic Showing Main Components of Open-Rack Seawater Vaporizer

FIGURE 10-2

Submerged Combustion Vaporizer

FIGURE 15-1

Major Steps in Developing and Implementing an LNG Receiving Terminal Project

FIGURE 17-1

Power Generation from LNG Cold Using Rankine Cycle

FIGURE 17-1

Power Generation from LNG Cold Using Direct Expansion

FIGURE 18-1

Non-Methane Constituents for Selected Export Plants

FIGURE 18-2

LNG Energy Content for Selected Export Plants

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LIST OF PHOTOGRAPHS
Location

Description

PHOTO 1

Front Cover

View of Trestle and LNG Tanker

PHOTO 2

Chapter 5

Jetty and Unloading Platform

PHOTO 3

Chapter 6

Unloading and Recirculation Lines

PHOTO 4

Chapter 6

Unloading Lines with Expansion Loops

PHOTO 5

Chapter 7

95,000 Cubic Meter Single-Containment Tank

PHOTO 6

Chapter 7

100,000 Cubic Meter Membrane-Type Tanks

PHOTO 7

Chapter 8

Boil-Off Gas Desuperheater and Recondenser

PHOTO 8

Chapter 10

Open-Rack Vaporizers

PHOTO 9

Chapter 12

Dry Chemical Unit and Foam Generation Unit