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2012 Conference & Exhibition Newspaper
Day Two, Tuesday, 9 October 2012


Energy secretary reaffirms
commitment to natural gas
Kurt Abraham
“We are good at gas, and we like gas.”
With that one sentence, Secretary of State
for Energy & Climate Change Edward
Davey reaffirmed that the UK government
remains committed to further development
of the country’s natural gas market.
Delivering the Ministerial Keynote
address at Gastech yesterday morning,
Secretary Davey noted that “Over £22 billion of natural gas were sold in the UK
last year, making it is the single, most
important fuel in the UK’s energy mix.
Gas fulfills 68% of our heating needs and
constitutes 34% of our primary energy use.
For some time yet, gas will be as important
to the UK as in the past.”

Davey reminded the audience that Britain has a unique position as a gas corridor
for Europe. “We directly access the international LNG market here, and we have
great connections with the Continent. In
2011, the UK was the world’s third-largest LNG importer, with volumes totaling
around 25 billion cubic meters, about a
quarter of our total gas consumption.”
Furthermore, pointed out the Secretary,
Britain has a long track record of finding,
extracting or trading gas.
Giving a nod to the environmental side,
Davey said, “Of course, we all know that,

See Energy secretary, page 19

Rt. Hon. Edward Davey, MP,
Secretary of State for Energy and
Climate Change, addresses Gastech.

Sir Frank Chapman, BG Group,
is photographed moments after he cut
the ceremonial ribbon to begin
the Gastech Exhibition.

Statoil sees increasingly global LNG market
Ben DuBose
Technological advances related to the
exporting of liquefied natural gas (LNG)
are poised to make the market increasingly global in coming years and decades,
according to a Statoil executive.
Helge Lund, President and CEO of the
Norwegian state company, said that added
integration will benefit both consumers
and producers.
“We are facing an exciting gas future,”
said Lund, who spoke in Monday morning’s Executive Leadership Panel session.
“Going forward, we see natural gas as more
of a global commodity, for which competition will be fiercer.”
Lund believes that the changing market
dynamics are due largely to technical and
commercial innovation in North America,
where unconventional gas resources, such
as shale, are changing the dynamics.
“If ever a game-changer in the energy
sector, we are seeing one now in terms
of increased availability of natural gas,”
Lund said.
“The U.S. has become self-sufficient
in gas, and this completely changed their

position around from importer to exporter
of LNG.”
That newfound position for the U.S.
is already having global impacts, he
“I think it’s fair to observe that the
unconventional gas revolution has not only
altered the North American market, but
also other markets affected by both pipeline and LNG, such as Europe,” Lund said.
Europe already imports significant
quantities of LNG, he noted, and there are
estimates that Europe will rely even more
on imports after 2015, as its production is
on the decline, excluding Norway.
Thus, a link has already been established between Asian and European gas
markets, particularly in LNG. Long-term,
this will lead to greater gas market integration, he said.
“We are convinced that this integration
will benefit both consumers and industries, as well as producers,” Lund said. “It
can stimulate stronger price convergence,

See Statoil, page 19

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Helge Lund (second from left), President & CEO, Statoil, speaks during The Executive
Leadership Panel. Other panel members pictured include Martin Houston (far left),
COO & Executive Director, BG Group; Shigeru Muraki (third from left), Exec. V.P.
and Chief Executive, Energy Solution Division, Tokyo Gas Co. Ltd; Khalid Sultan
Al-Kuwari, Marketing and Shipping Executive, RasGas Company Limited; and
Djeloul Bachi-Bensaad, Director of Production Division, Upstream, Sonatrach.

Conference Programme, Tuesday, 9 October

Technical TRACKS

The EFET Trading Day




Market Outlook

Gas Shipping and Storage

Gas Markets, Prices and Risk

Chairman’s Welcome
■  De la Rey Venter, Global Head of LNG,
Upstream International, Shell
One Billion More Users by 2030: The UN

and IEA Challenge to the World Gas Industry
■  Kimball Chen, Chairman and Chief Executive
Officer, Energy Transportation Group, Inc.
Global Gas Prices—Bear or Bull?
■  Noel Tomnay, Head of Global Gas Research,
Wood Mackenzie
Outlook for the Natural Gas Market in Japan

and Tokyo Gas Group’s 2020 Future Vision
■  Kunio Nohata, Senior General Manager
Gas Resources Dept., Tokyo Gas Co. Ltd.
Assessing the Impact of the Great East
Earthquake on Japanese LNG Imports

and Shipping Demand
■  Mike Rowley, Director, LNG Shipping,
Mitsui OSK Bulk Shipping
Recent Structural Evolutions of the
International LNG Industry
■  Andrew Walker, Vice President,
Global LNG, BG Group
■  Elizabeth Spomer, Senior Vice President,
Business Development, BG Group
Latest Trends and Developments Impacting
Development in LNG Projects
■  Philip Olivier, President, GDF SUEZ
Global LNG
Why the Global Gas Market is Full

of Surprises
■  Catherine Verdier, Vice President,
Market Expertise, Strategy, Markets and IT,
Total Gas and Power
Future Pricing of Internationally-Traded Gas:
Regionalised, Globalised or Cartelised?
■  Prof. Jonathan Stern, Chairman and Senior
Research Fellow—Natural Gas Programme,
Oxford Institute for Energy Studies
Reserve Paper: Why Oil Linkage in LNG
Contracts Will Remain a Mainstay in the East
■  Dr. Fereidun Fesharaki, Chairman,
FACTS Global Energy
Delegate Lunch



Natural Gas and LNG Projects
Chairman’s Welcome
■  David Ledesma, Energy and Strategy
Consultant, South-Court Ltd
Additional Myths About LNG
■  Christopher Caswell, LNG Technology
Manager, KBR
No More Mr Nice Guy? Does Today’s LNG

Market Challenge LNG Project Operations?
■  Peter Thompson, Manager, Gas Strategies
Cameroon LNG: Converting Stranded Gas

into Valuable Resources, and Unlocking the
Gas Exploration Potential
■  Raphael Tilot, General Director,
Head Cameroon LNG Project,
Successfully Executing the Barzan Gas Project
■  Ahmed Tayeeb, Project Engineering
Specialist, RasGas Company Limited
Community Engagement and Effective
Partnerships: A social license to operate
■  Julie Nelson, Director of Public and
Government Affairs, BG Group
New Natural Gas and LNG Project
Development Risks and Economic Realities
■  Colin Harrison, Senior Consultant—
Downstream Oil and Gas and Infrastructure, Gaffney, Cline & Associates
Adding Liquefaction Capability to an
Existing LNG Regasification Terminal
■  Darron Granger, Senior Vice President
Engineering and Construction,
Cheniere Energy, Inc.
The Supply Chain Optimisation of LNG
Production Facilities—A Rigorous Approach
■  Chris Mole, Global Hydrocarbons
Select Director, Worley Parsons
■  Nicola Knight, Principal Consultant,
KBC Process Technology Ltd

18:00 - 20:00

Event Party—ExCeL Exhibition Hall

2  Tuesday, 9 October 2012

Chairman’s Welcome
■  Captain Andrew Clifton,
General Manager Designate, SIGTTO

New LNG Containment Systems to
Overcome Partial Filling and Sloshing Issues
■  Geoff Green, Managing Director,

■  Frederic Hannon, LNG Shipping
Project Manager, Total

New Generation of Modern LNG Carriers

with Type C Cargo Tanks and LNG
Propulsion System
■  Bjoern Munko, Sales Manager,
TGE Marine Gas Engineering


Recent Developments within LPG
Cargo Handling Systems
■  Stein Thoresen, LPG Business Unit Director,
Hamworthy Oil & Gas Systems

Cargo Reliquefaction Plant Enhancements
■  Andrew Scott, Weir LGE Process

From Disaster to Recovery: The Impacts

on the Sendai LNG Terminal of the 2011
■  Jun Imaiida, Production Engineering
Section, Gas Technology Dept.,
The Japan Gas Association
Reserve Paper: The Ships Superintendent
Training Course: Meeting the Needs of the
Gas Shipping Industry
■  Steve George, Founder and Director, ECMS


Chairman’s Opening Remarks
■  Dr Colin Lyle, Board Member and Gas
Committee Member Chairman, European
Federation of Energy Traders (EFET)


Global perspectives of gas supply,
demand and prices
■  Anne-Sophie Corbeau, Senior Gas Analyst,
International Energy Agency


Gas trading in Europe—the big picture
■  Andy Williamson, Head of Supply,
LNG, Logistics and Trading, EconGas


Gas trading in North America—
the big picture
■  Porter Bennett, President and CEO,
Ponderosa Advisers


Future gas trading developments
opportunities and risks
■  Q&A with panel




Chairman’s Comments
■  Dr Colin Lyle, Board Member and Gas
Committee Member Chairman, European
Federation of Energy Traders (EFET)


Liquidity in the NW Europe gas market
■  Bert den Ouden, CEO, APX ENDEX


Expanding the Central European Gas Hub
■  Gottfried Steiner, Chief Executive Officer,
Central European Gas Hub


How is LNG influencing European
gas trading?
■  Ian Wood, Director of LNG and International Business Development, Centrica


Outlook for pipeline gas and LNG trading
in Europe; influences and interactions
Delegate Lunch

Delegate Lunch

Floating LNG

Chairman’s Welcome
■  Bill Sember, Vice President, ABS



FLNG—Beyond Prelude
■  Neil Gilmour, General Manager FLNG,
Shell Upstream International

Improving Trade in Europe

The Commercialisation Roadmap for

FLNG—Appraising Residual Technology
Challenges, and integrating Risk Mitigation
Strategies in Development Planning
■  Joe Verghese, Director, Select,
Worley Parsons

Lessons Learned from a Decade of
Hydrodynamic and Nautical Studies
for Offshore LNG Operations
■  Johan Dekker, Project Manager, Maritime
Research Institute Netherlands (MARIN)




LNG Barge Developments Move Forward
■  Javid Talib, Vice President, Black & Veatch


Chairman’s Opening Remarks
■  Dr Colin Lyle, Board Member and Gas
Committee Member Chairman, European
Federation of Energy Traders (EFET)


KEYNOTE: The EU gas market, what will
it be and what still needs to be done?
■  Walter Boltz, Vice-Chairman, Board of
Regulators, Agency for Cooperation of
Energy Regulators (ACER)


market—what will it be and what still needs
to be done?
■  Gunnar Steck Regulatory Manager,
E.ON Energy Trading
■  Sue Harrison, Head of International Policy,
■ Dr Colin Lyle, Board Member and Gas
Committee Member Chairman, European
Federation of Energy Traders (EFET)
■  Juan Rios, Global Head of Trading,




Chairman’s Comments
■  Dr Colin Lyle, Board Member and Gas
Committee Member Chairman, European
Federation of Energy Traders (EFET)


Lessons from REMIT implementation
(Regulation for Energy Market Integrity
and Transparency )
■  Mark Dalton, Operations Performance
Manager, BG Group


Reducing costs and improving reliability
of information exchange
■  Hugh Brunswick, Managing Director,
Gas market supervision—what next?
■  Dr. Karl-Peter Horstmann, Head of
Regulatory Compliance and Chairman,
EFET Task Force on Market Supervision
Concluding Panel Discussion
Closing Remarks
■  Dr Colin Lyle, Board Member and Gas
Committee Member Chairman, European
Federation of Energy Traders (EFET)

An Overview of the Challenges of LNG

Fire and Explosion Modelling and Risk
■  Bibek Das, Senior Risk Engineer, ABS

Operational Measures to Reduce Risk
of Damage due to Sloshing
■  A.J. Macdonald, Principal Specialist LNG
Containment Systems, Lloyd’s Register

Reserve Paper: The Role of Risk-Based

Methodology to Validate Floating LNG
Projects and Technology
■  Diane Ruf, Head of Veristar Machinery
Dept., Bureau Veritas
18:00 - 20:00

Event Party—ExCeL Exhibition Hall

Conference and Exhibition Opening Times

Monday 8 October
Tuesday 9 October
Wednesday 10 October
Thursday 11 October

Conference Exhibition
09:00–18:00 12:00–17:00
09:00–18:00 10:00–17:00
09:00–18:00 10:00–17:00
09:00–13:00 10:00–16:00

To see the schedule for CoTEs,
please see page 18

Gastech Conference & Exhibition Newspaper



18:00 - 20:00

Event Party—ExCeL Exhibition Hall

ae .11 October 2012 www.A world class employer offer exciting opportunities Visit ADNOC Stand at Gastech Conference & Exhibition UK | ExCel London 8 .adnoc.

9 October 2012 Gastech Conference & Exhibition Newspaper .Gastech 2014 AD 4  Tuesday.75x15_inches_HR 24/09/2012 17:54 Page 1 Hosted by Korea | KINTEX 1 | 24 – 27 March 2014 Gastech Comes To Asia South Korea – The Economic Powerhouse That Drives Demand For LNG www.

.....13 Hoegh LNG..... natural gas holds “large potential” to increase its competitive share in Asia and Japan in coming years... “Its benefits will be mutually shared by both producers and buyers.. they received their delegate packets and were treated to a buffet-style breakfast..... director of government and external relationships for Gastech........” Tokyo Gas. In Asia...23 and construction contractors...40/MMBtu in the U. “Based on those circumstances... 9 October 2012  5 ............. Gavin Sutcliffe.. 24 Gastech.. But while general delegates filed into the conference and exhibition throughout the morning..... the demand will continue at 70-to-80 mil- lion................ 8–11 October..” It is safe to say that Sutcliffe’s goal of reaching out to the NOCs is already starting to register.” Muraki spoke at Monday morning’s Executive Leadership Panel session on whether the gas industry has entered a “golden age. The breakfast spread included a wide array of juices...... nuclear capacity will be gradually decreased.....” Muraki said................. There... transportation.. however........... rising up through the ranks of the company to his current position in April 2008..... “This is the first time we’ve done a full VIP program of this magnitude. already one of the world’s largest LNG buyers..... mining. Muraki believes the other issue that will dictate Japan’s LNG market going forward is government policies on nuclear energy.... However.. 7 QatarGas...” ■ VIP programme commences with a breakfast Billy Thinnes Monday morning dawned cool and partly cloudy....... Bechtel is an engineering.. was present at the breakfast.... “It’s about building relationships at the elite level.... “We are very Artist/Illustrator 2 Greenway Plaza...... “However.... 14....” said Jonathan Ellenor.. Japan imported 70 mtpa of LNG....... and then build up our contacts with the engineering firms Gastech Advertisers ADNOC...... If you wish to advertise in this newspaper.. At the same time.............. gas prices will be $5... Suite 1020 Houston.... reaching 80 mtpa in 2011 and from 85-to-87 mpta in 2012.. this plan has not been adopted as policy.. such as the expansion of pipeline infrastructure........ to expand the gas market and promote its efficient use..Thinnes@GulfPub... believes LNG prices will determine the balance between gas and coal usage in industries.. Muraki Shigeru Muraki..Japan looks to secure North American LNG exports Ben DuBose The long-term fate of Japan’s LNG market will largely depend on whether the nation can secure deals to import LNG from North America............. 17 GE... LNG [import] demand in 2020 will increase to 90-to-100 million tonnes per annum (mtpa). an executive with Tokyo Gas said.. measures will have to be implemented in Japan.HydrocarbonProcessing.S... judging by the roster of delegates attending Gastech.........1 ExxonMobil....... the price is expected to drop to between $9 and $11.........1 Statoil.. Muraki said..... exclu- sive networking event...... Either way.. he says. $10... with intermittent showers greeting Gastech delegates as they filtered into the ExCel Center...Thinnes@GulfPub.. the future of energy demand can vary.5/MMBtu in Europe and $12.. Gastech’s head of content and programming.15 Lloyd’s Register. We are dedicated to building a legacy. “We want to take these relationships....” said Sutcliffe.... ■ Published by Hydrocarbon Processing as four daily editions... We’ve got the top 150 people in the natural gas industry....” One of the VIPs at Monday morning’s breakfast was Bill Dudley.... In 2010.. construction and project management company.. Executives from some of the top natural gas companies in the world gathered to rekindle old friendships. “A government committee has announced a plan to decrease dependence on nuclear energy to zero by the 2030s....... 4............. pastries and bagels. has significantly increased its deals following the 2011 earthquake disaster. 11 GTT...... allowing gas to take a key role............. If current pricing levels continue......... and we are providing exclusive breakfasts and roundtable discussions for them.........” Sutcliffe said............... the import quantity increased after the earthquake... However........... Thus... “It is time to reach out to the national oil companies (NOCs)... “If those pricing levels are achieved... as this is the ultimate.. or to submit a press release. such as power.... 1... oil and gas and government services..... coal-based power stations are also being discussed as a method of lowering power generation costs............ The International Energy Agency (IEA) forecasts that by 2020. mingling with the VIPs and answering any questions that they may have had about the gathering.... Publisher Bret Ronk Gastech Contacts John Bates Samantha Ling Francesca Ruggiero Editor Billy Thinnes Billy......” The assembled VIPs came together on the second floor of the ExCel Centre...............” Regardless of the exact policy details.... Shigeru Muraki.... Aside from North American exports.. communications............ fruit. Its diverse portfolio encompasses energy. 2 CEO of the Energy Solution Division of Toyko Gas. if shale gas in North America is exported to Asia... the year before the earthquake. develop new business contacts and assess the current state of the industry.. based on the competitiveness of natural gas against coal in power generation. and we see the VIP program as a way to reach out into the heart of the international natural gas community..... The schedule for VIPs began with a breakfast and registration at 7:30. welcomes Bechtel Group President and CEO Bill Dudley to the VIP breakfast.... president and CEO of Bechtel Group.... the VIP program was already in full swing.4/MMBtu in Japan... it comes down to the pricing... Representative Director........ www... Discussions are still ongoing and not finalized.... Muraki said.9 Qatar Petroleum.. Inc....... Gastech’s head of content and programming....” he said.... due to the shutdown of nuclear power plants....... Tokyo Gas concluded. in the dedicated area for conference proceedings......... please contact the editor via email at Billy.. Dudley has been with Bechtel since 1981.... TX 77252-77046 713-529-4301 Advertising Production Manager Gastech Conference & Exhibition Newspaper David Weeks Cheryl Willis Executive Editor Kurt Abraham Contributing Editors Adrienne Blume Ben DuBose Ian Lewis Eloise Logan Photographer Kelly Abraham Production Manager Angela Bathe Gavin Sutcliffe.

Co-chairman. along with facilities in Norway. Gastech. Qatar and Trinidad. Egypt. Hertel’s director of competence. contractor services. “Our expertise. especially in the LNG industry. packaging and all that. we cut all the PIR insulation. and we’ll do sheet metal work. delegates were told at the opening session of this year’s conference. ■ The afternoon European Supply panel featured (left to right) Prof. no matter what the pricing may be?” Finlayson spoke on Monday afternoon’s regional executive leadership panel. commented on the Perth facility. “We already have a high degree of concentration. to have the opportunity to recognize the issues that others are having to face within the industry. Meanwhile. then more rapidly over time. executive director and managing director for BG Advance. noting that when the first Gastech conference was held in the early 1970s. an executive with BG Group said. The need to overcome such constraints through greater cooperation highlighted the importance of the opportunities provided by Gastech to exchange information and develop joint strategies. the European share of gas demand not covered by long6  Tuesday. in welcoming remarks to the conference. Minister of Energy.” said Chris Finlayson. panelists noted.000. and Director of Global LNG/FLNG. the entire global LNG industry was served by just 11 ships. Stefan Judisch. manpower and funding. everything has to be perfect.” Sullivan said. “We live. 9 October 2012 term contracts will slowly continue to grow. A warning issued last week by UK energy regulator. where long-term contracted volumes go to Asia. and perhaps to come up with alternative ways to fill that gap and find a way to cover those shortages. while around 70-90 new vessels are being built. Jonathan Stern. both buyers and consumers become far more exposed to that market and what happens outside Europe. the LPG fleet has grown from 300 vessels to more than 1. Myself and my colleagues have all worked on major LNG plants around the world. espe- cially with increasing volumes from North America. “We like to be at the forefront of innovation. Executive Director. There has been reluctance. Europe mulls LNG long-term vs. Commercial Director of Bernhard Schulte Shipmanagement Ltd. that the country could face power shortages by 2015.” including several plants in the UK and Australia. RWE. we make sure the quarantine [procedures] are all correct.” ■ The team from Hertel made a strong showing on Monday. Chris Finlayson. “It’ll come slowly at first.” Hollington added. that growth would need to be made against a background of severe restrictions and shortages. showed the important role that gas is likely to play in meeting growing global power demand. for Chevron’s Gorgon LNG project on Barrow Island offshore Western Australia. whilst immediately delivering energy flexibility as. spot pricing models European gas suppliers and policymakers will have to decide in coming years. moderator. natural gas surely answers many of the environmental and cost-associated questions effectively. “The Wheatstone LNG [project] is coming up very soon [in Australia]. Ofgem. who said. “As national governments strive to fulfil carbon emission obligations. which will be up near Darwin. and we’ll send it all off to be installed. European suppliers will soon have to decide if they wish to follow suit. Hollington answered.” said Hollington. and Co-Chairman of Gastech. ■ Hertel brings equipment and services to LNG projects worldwide Adrienne Blume A global industrial services company based in Rotterdam.” The LNG sector. Allan Hollington. Gas Infrastructure Europe. as well as Ichthys. The industry is benefitting from up to $100 billion of investment in new plant and equipment at the present. Gastech. One of the company’s recent announcements concerns last May’s opening of its new fabrication facility in Perth.” Asian suppliers are increasingly going to the long-term model. in very dynamic times. he said.” he said. leading to reliance on the spot market. to put long- term LNG supply contracts in place. it is required by the end user. often through costly renewable policies.An opportunity to tackle challenges together Ian Lewis Paul Sullivan. President. at the moment. And we’re currently looking at the shale gas plants over on the East Coast [of Australia]. BG Group. compared to 350 carriers today. Jean-Claude Depail. “The best way to diversify supply is through uncontracted LNG. “We have the infrastructure in place. at a time when it faces both rapid expansion and tough business conditions. we’re at the end of LNG supply trading. Are we prepared to take what the market will give. in terms of fabrication. Director of Global LNG and FLNG at Worley Parsons. and Alexander Novak. Head of Content and Programming. and when. Australia. “We have expertise in insulation for LNG. “Right now. At Perth. Then.” said Finlayson. but it may be hampered by an increasing reliance on a very small number of external suppliers. Russian Federation.” The global wholesale gas market will become more competitive.” said Finlayson. we are seriously resource-constrained across the industry. faces an interesting future.” In that case. CEO. Sullivan said that while the LNG industry was poised to double in size within the next 10 years. “We need opportunities like this to be open-minded. and also Gastech Co-Chairman. he said. That view was supported by Gavin Sutcliffe. “Contracting will become the key issue as we move forward. particularly in the UK. Clucas also highlighted the giant strides made by the industry. Worley Parsons This year’s Gastech provides a vital opportunity for the many strands of the gas industry to share knowledge. “More of the market will become open. From now until 2025. Since Barrow Island is a Class-A nature reserve. Brunei. whether they want to challenge Asia for the stability of long-term LNG contracts. specifically in LNG parts. Hertel joined the Gastech exhibition for the fourth time this year. “We have to admit. said Chris Clucas. Gastech Conference & Exhibition Newspaper . in particular. or are we going to push for more long-term contracts. “It’s a workshop that conforms to the quarantine [specifications].” When asked what Hertel plans to showcase at Gastech.” said Paul Sullivan.” he said. “The real issue at hand is how content governments and energy suppliers will be to leave customers open to market fluctuations. Oxford Institute for Energy Studies.

and the nuclear phase out in Germany. Investments reflect ongoing efforts to retrofit existing plants to meet growing demand for energy and natural gas products. the valve trim can be pulled out of the body without having to remove the entire valve. even after numerous actuating cycles. KSB Ltd is presenting the new TRIODIS valve series at this year’s GasTech Exhibition. It is one of four strategically located LNG terminals being developed in the UK. and operating pressures of up to 100 bar. As North Sea gas reserves have begun to deplete. with output rising 7. to improve processing flexibility. the closing torque is lower than that of doubleoffset disc valve types.S. the EU’s gas output plummeted 11. It has successfully passed the Fire Safe Tests for API and BS (British Standard). TRIODIS butterfly valves are available with diameters ranging from 200 to 1. Fig. France. Gastech Conference & Exhibition Newspaper The Isle of Grain LNG Terminal is situated on the Isle of Grain. The actuator flanges and stem ends will accommodate manual. on a KSB test stand. Abu Dhabi. the country imports half its needs. This new valve series will continue to provide tight shut-off. Saudi Arabia (13. Countries with large natural gas reserves are working to develop their resources for profitable export to consuming nations via pipelines. Infrastructure development is key. are equipped with KSB’s AMRI valves. The U. Hydrocarbon Processing’s Market Data 2013 contains further analysis of the LNG and gas processing markets. Equatorial Guinea. which is consistent with historical growth trends. Norway and U. these valves ensure tight closure. The valve stem is a single-piece design supported by generously-dimensioned plain bearings. unconventional gas developments. The series includes a special butt-weld side-entry version. The entire report also covers refining. the highest demand growth levels were recorded in China (21. Over 50% of all gas tankers worldwide. Butterfly valves. 1. on the River Medway in Kent. These tests were performed at the research center in Gradignan. Among fossil fuels. full-containment. Presently. New butterfly shut-off valves handle liquefied gas transport As a complement to its extensive range of butterfly valves for handling liquefied gas. high gas For maintenance.4% on weak regional demand. the 7. despite lackluster North American natural gas prices. Peru. Tight shut-off is ensured.S. worldwide gas trade is anticipated to more than double over the next 25 years.9%/yr through 2030. ■ Adrienne Blume is the process editor for Hydrocarbon Processing. Russia. even at very high differential pressures. These butterfly valves do not require a travel stop for the closed position. Egypt. and to comply with environmental and safety regulations.3% of gas shipments worldwide. hydraulic and electric actuators of any make. Russia and Canada remained the world’s three biggest users of natural gas. the means to transport it. and that figure is likely to increase further.Shale gas. In recent years it has seen a major expansion of its importation and storage facilities with the construction of the largest above-ground. the EU recorded its largest-ever decline in gas consumption during 2011. liquid petroleum gas (LPG) transport. the U. At present. The butt weld end serves to weld the valve into the piping.1% increase on the year. ■ Tuesday.2% vs.6%). In 2011. and economic trends. Yemen. LNG storage tanks in the world. KSB has played a part in this expansion with the supply of its Amri cryogenic butterfly valves to handle LNG at –161° C. which makes them suitable for use with smaller actuators. Demand picks up in Asia. Hydrocarbon Processing The boom in shale gas production has coincided with an expansion of global liquefied natural gas (LNG) trade. (Alaska) Fig. The stainless steel bodies can be supplied. Division of global LNG export market. safety and environment. either with flanges or with butt weld ends. Demand growth was below average in all regions except North America. to 75% by 2020. should the actuators operate the valves in the wrong direction. where weak gas prices supported consumption. The 9. Many of the liquefied gas tankers visiting UK shores will have valves supplied by KSB. Brunei. and field maturation and maintenance. while oil will see the slowest increase. depending on their properties. transport the fuel.200 mm. 2011. Gas is anticipated to meet 31% of the projected growth in global energy consumption by that year. especially when space is limited. This protects the valve seats. Sealing can be effected by means of HELICOFLEX seat rings.gulfpub. including construction projects and spending forecasts. please visit www. the demand for LNG and. LNG gain prominence in the global energy mix Gas processing and liquefaction capacity expansions are forecast for all major LNG-importing and LNG-exporting regions Adrienne Blume. LNG makes up 32. Thanks to these valves’ design. For more information. With their triple-offset design and tapered sealing surfaces. 9 October 2012  7 . These maintenance-free. Incremental supplies will come from the U.4% growth seen in 2010. which will also require the addition of LNG carriers to Algeria 5% Other* 28% Qatar 32% Nigeria 8% Australia 8% Indonesia 9% Malaysia 10% *Trinidad and Tobago. Also. mild winter weather. because their metal seats form natural stops. the UK has moved from self-sufficiency in gas supplies to a growing dependency on imported gas. Conversely. The biggest contributors to growth in global natural gas supply through 2030 are expected to be the Middle East and the former Soviet Union. marking the largest annual decline on record. and increased generation of renewable electricity. with an average increase of 2. This is a major advantage. has increased sharply.7% from 2010. Gas process- ing and liquefaction capacity expansions are forecast for all major LNG-importing and LNG-exporting regions. pneumatic. hence. total global gas demand expanded just 2. which are known for their excellent performance in cryogenic applications worldwide.2%) and Japan (11.5%). Due in part to the rise of unconventional gas resources. LNG cryogenic tankers and gas-to-liquids (GTL) projects. Outside of North America. petrochemicals. 1 shows the division of the global LNG export market in 2011. which was built specially for this purpose. remained the world’s largest gas producer in 2011. based in La Roche–Chalais. One of her main responsibilities for the magazine is coverage of the natural gas industry. and regional trends in gas production and use. global gas growth from 2010–2030 will be highest in the power and industry sectors. near Bordeaux in France. The valves provide bi-directional shut-off. By volume. Conversely.S. Supply driven by North America. Australia and China. The country maintained its focus on unconventional gas production. natu- ral gas is expected to see the fastest growth through 2030. with new trade routes and supply patterns emerging.. as well as many loading and processing terminals. Oman. An additional antiblowout device prevents the stem from being blown out of the body in the event of a failure. even in the event of a fire. The DANAIS TBT series is produced at its manufacturing center for butterfly valves and actuators.9% decrease was spurred by economic turmoil. Russia followed close behind with a 3. triple-offset butterfly valves are designed for handling fluids with temperatures ranging from –250° to +200° Celsius. After the Fukushima disaster in Japan. Non-OECD regions will collectively account for 80% of global growth in demand for natural gas.S.

10 km to the southeast of the Tarap gas discovery made by Lundin in 2011. said. including fluid samples and a pressure profile.. Lundin Malaysia BV’s partner is PETRONAS Carigali Sdn Bhd with 25 percent. “Berangan is the third gas discovery made by Lundin Petroleum in SB303 and the fourth in the contract area which also includes the Titik Terang discovery. will eventually be constructed.800 boed in 2011. president. During the production test. with an average equity production of approximately 54. The Satyr-2 discovery well confirmed approximately 128 ft of net gas pay. Infrastructure Minister Uzi Landau declared. are that Lebanon probably has major gas fields within its maritime economic zone. Eni Pakistan Limited. Israel is equally adamant. Geological Survey reported in 2010 that the Levant basin. as much from a lack of economic strategy and a functioning government as from the perpetual political instability. Lundin Malaysia BV operates six blocks in Malaysia.S. Hezbollah leader Hassan Nasrallah warned in 2011. and domestic gas to Western Australia.200 square miles of the eastern Mediterranean.450 m and encountered over 54 m of net gas pay in two thick Cretaceous sandstones of the Mughal Kot formation. the energy-starved country needs to utilize its gas reserves quickly. No gas at ExxonMobil’s PNG exploration well Plans for a possible expansion of ExxonMobil’s LNG project in Papua New Guinea suffered a slight setback. On top of that. “Whoever harms our future oil facilities will face the same damage. it’s understood to contain gas fields similar to its neighbors. The four gas fields lie within a 10-km radius and present a clear opportunity to evaluate the potential for a gas cluster development. as a gas discovery. as they are now. The Cypriots say they sit on enough gas to meet their current consumption rate for 200 years. Lundin makes third gas discovery offshore Malaysia Lundin Petroleum announced that it has completed the Berangan-1 well in SB303 Block. operated by Eni.” ■ . Cyprus found some 7 Tcf in one of 12 blocks of Aphrodite field off its south coast in its first exploratory drilling in December 2011. was drilled at a total depth of 2. a U. That’s bad enough in the best of times but impossible when prices soar. “The continued exploration success in the Carnarvon basin could help underpin expansion opportunities at our LNG projects in Australia and support our drive to become a leading supplier of liquefied natural gas to world markets. and defining the probable gas-water contact. PM308A. which is surveying the Lebanese sector. their political process tangled in traditional sectarian rivalries between Muslims and Christians. The venture is also exploring for more gas at the Hides prospect.7 billion bbl of oil. An extensive data acquisition program was completed. which previously had a 50 percent stake in the block under a contract with CNOOC. is operator of the block with a 40% stake in the development phase. But no one’s holding their breath that foreign companies are likely to start drilling any time soon.” Chevron Australia is the operator of WA374-P. and 15 km to the south of the Cempulut gas discovery.S. crisis-ridden government is reported to be close to appointing a panel to oversee exploration of potential rich natural gas fields offshore. Lebanon has to import 96 percent of its energy consumption on oil imports. In September 2010. But the Lebanese. which sit on the same gas-bearing strata as Lebanon. Dolphin Geophysical. desperately needs cheap energy. which aims to refocus exploration activities in the neighboring areas to productive fields and confirms the presence of significant exploration potential that can be exploited through the application of new geological models. George Kirkland. BP also said it plans to spend about $630 million on the third phase of a project to make purified terephthalic acid– which is used in many plastics–at its BP Zhuhai Chemical Company Ltd plant in Guangdong. Syria lies along the same offshore strata. encroaches on some 330 square miles of Lebanon’s maritime zone. a Shiite political movement that also has the most powerful forces in Lebanon. which runs from Syria through the waters of Lebanon. in the Badhra Area B exploration concession. However. Further work will follow to estimate recoverable resource ranges. The Iranian-backed Hezbollah. Eni has been present in Pakistan since 2000 and is the largest producer in the country. commencing with the Merawan Batu-1 well in the PM308B Block. The size of the discovery is estimated at between 300 and 400 Bcf of gas-in-place. Eni reports significant gas discovery in Pakistan Eni has made a significant gas discovery onshore Pakistan. Each sect wants its slice of the potential revenue and. has bedeviled Lebanese efforts to create an energy infrastructure and governing body to issue exploration licenses and negotiate contracts with foreign oil companies. vice chairman. The well was drilled in 3. Israel. through its subsidiary. and a 20 percent share when the project has moved into production. With Lebanon’s economy dipping dangerously.” Melody Meyer. given the deep-rooted corruption in Lebanon’s political and economic life. in what will be the company’s second deepwater project in China. indicating a single continuous gas column is present. it bought a 41 percent stake in another block in the South China Sea. the Gaza Strip and Egypt. 9 October 2012 ration capability in the region and the significance of Australia to Chevron’s energy portfolio. Berangan-1 is a vertical well drilled to a depth of 1. whose exploration operations are the most advanced in the region. off the Western Australian coast. and the countries are locked in an escalating dispute over gas fields and oil worth billions of dollars that could be both countries’ economic salvation. approximately 75 mi northwest of Barrow Island. said in a statement. based on 3-D seismic surveys. namely PM307. and analysts remain optimistic that a third production unit. Chevron Corporation. The Badhra B North-1 exploratory well. Lundin Petroleum holds a 75 percent interest in SB303 through its subsidiary Lundin Malaysia BV.709 m in approximately 70 m of water. Satyr-2 is Chevron’s fifteenth discovery in Australia since mid-2009. Israel denies that. The Trapia-1 well did not intersect any prospective reservoir intervals before reaching its total depth of 3. Chevron announces natural gas discovery offshore Australia Chevron Corp. Cyprus. It hasn’t conducted surveys yet. company’s joint venture partner. Spectrum and its partner.454 ft. the well flowed high-quality gas from the two reservoirs.” Following Berangan-1 the West Courageous rig will move to offshore Peninsular Malaysia to execute a three-well exploration campaign. and help to reduce the national gas deficit. Chevron Asia Pacific Exploration and Production Company. at 25 and 35 MMcfd. The short time-to-market for development of the field is part of Eni’s strategy to focus on rapid development of conventional and synergistic assets. Right now. and its delineation will require further appraisal wells. Ashley Heppenstall. The planned exploration will mark BP’s second deepwater project in China. the U. The well is in the WA-374-P permit area. Malaysia. in the Khirtar Fold Belt region. President and CEO of Lundin Petroleum comments. Eni has started discussion with the Pakistani regulator and the joint venture. The discovery is 20 km east of the Bhit gas processing facility. together with partners Premier Oil (6%). PM308B. fought a 34-day war with Israel in 2006 and is braced for a new one. move swiftly toward energy self-sufficiency and lucrative export programs. a premier hydrocarbon basin. with which Lebanon is still technically at war. because of regional tensions. and the flare-up in sectarian tensions fanned by the 18-month-old civil war in neighboring Syria. Many were just testing the water. even as neighboring Israel and Cyprus. with reserves estimated at 16-tcf. offshore Sabah. in order to speed up production of the discovery through a long-term production test that will allow for commercialization of gas. but a surprising number were serious about drilling off Lebanon—although it remains to be seen how many will risk doing so. contains 122 trillion cubic feet of gas and some 1. SB303. like its old enemy. SB307 & SB308. The well penetrated a gross gas column of over 165 m in the targeted mid-Miocene-aged sands. BP will have a roughly 40 percent stake in the block during the exploration period. The drilling of Badhra North B-1 is part of Eni’s new strategy in Pakistan. energy company. the squabbling Lebanese were late in providing the United Nations with Beirut’s claims over maritime waters with Israel. announced further drilling success by its Australian subsidiary in the Greater Gorgon Area. respectively. with a 50 percent interest. Hopes that the partners will find enough natural gas to expand the project to three LNG production units from the two currently under construction were recently buoyed by a large gas discovery at the P’nyang prospect. “We will not hesitate to use our force and strength. chief executive officer of Norway’s Spectrum Co. while Shell and Exxon Mobil each hold 25 percent. “The data that I have is that there’s greater potential offshore Lebanon than offshore Syria and offshore Cyprus.” Beirut claims Israel’s largest field. after an exploration well failed to discover any natural gas. Oil Search. said. BP’s participation in block 43/11 will diminish the size of a share held in the project by Anadarko Petroleum Corp. that could be the salvation of a country hovering on the brink of a new sectarian explosion. 350 km north of Karachi. Kufpec Pakistan (34%) and Oil & Gas Development Company (20%).” David Rowlands. “This new discovery in the Greater Gorgon Area further highlights the quality of Chevron’s explo8  Tuesday. which handles gas production from Bhit and Badhra fields.News in brief BP gets OK for deepwater gas exploration in South China Sea BP has obtained approval from the Ministry of Commerce to explore in the South China Sea. in the Carnarvon basin. It has vowed it won’t allow Israel to “plunder” its energy assets. Lebanon’s state electricity system is falling apart. Lebanon. Last year. Gastech Conference & Exhibition Newspaper The U. some observers question how much of the eventual gas revenues will reach government coffers. Eni. BP said such deepwater work is among the four areas of opportunity that the company wants to exploit in conjunction with its Chinese counterparts in China and overseas markets. and even sub-groups within those camps.570 ft of water to a total depth of 12. This. has found around 30 trillion cubic feet (Tcf) of gas in its waters since 2009. Lebanon fights to join East Mediterranean gas boom Lebanon’s dysfunctional. and that’s expected to rise. also made in 2011. which led to the discovery. are trailing badly in the race for undersea riches. a program due to be completed in January. A recent seminar on gas exploration was attended by dozens of companies. with major blackouts daily.800 m. are surveying some 1. or train. Leviathan.S. The signs. Israel. The other three pertain to natural gas—both conventional and unconventional types—integrated refining and chemicals and high-end lubricants. Israel.

The chairman for this session is Bill Sember. Jun Imaiida of the Japan Gas Association will explain how the tidal wave affected the plant and how the terminal has been rebuilt. we will hear about many new technical developments in the industry. and brought it into operation. working his way up from cadet to chief engineer on LNG carriers followed by a varied and successful career ashore in surveying and ship And don’t miss our experts talking about LNG as a fuel today at the Centres of Technical Excellence. Mr. The final paper scheduled for the morning session is also likely to create a great deal of interest. During this period. Captain Andrew Clifton. developed the course after a lifetime in the shipping industry. which can pose major operational constraints with existing systems. 09:00: Gas Shipping and Storage The traditional start to Gastech’s technical programme. The increased interest recently in niche markets for limited quantities of LNG has lead to the development of small LNG carriers with IGC Code “Type C” cargo tanks (i. The upsurge in the LNG market has also seen a significant increase in the quantities of LPG being transported. describing the company’s Prelude project. And Lloyd’s Register is at the forefront of this innovation. BIbek Das. Stein Thorsen of Hamworthy will explain their new design that reduces the number of gas compressors (thereby reducing capital cost) while maintaining performance by using condensate to cool gas in free-flow mode. we’re here to help you qualify it. As an alternative. and their project manager Johan Dekker will explain the lessons learned from these studies over the past decade. Black & Veatch is one of the leading designers of barge-mounted units. pressure vessels) and LNG-fired propulsion systems. One major problem that faces all designers of barges or any other floating units is congestion on deck. which promises to improve cooling modeled and mitigated. Bjorn Munko. Tuesday. The reserve paper for the session describes the ship superintendent course developed on the Isle of Man by ECMS and some of the leading local ship management companies – including Bernhard Schulte Shipmanagement. two of the leading cargo system designers (Hamworthy Oil & Gas and Weir LGE) have announced improved new designs for this type of ship. Mr. 9 October 2012  9 . Andrew Scott of Weir LGE will explain his company’s patented “vent gas cooling” system. Most recently. Our experience goes back over 50 years to the very first LNG carrier. Neil Gilmour of Shell Upstream will offer the first presentation. are either not available or have insufficient skills due to accelerated promotion and lack of experience. Whatever gas technology you’re exploring. ship’s engineers. ■ Leading innovation in gas technology. For some years. along the so-called North Shipping Route (NSR). Black & Veatch’s vice president of engineering will explain how the design of LNG barges is moving forward. involving both computer simulations and physical tank testing. Steve George. Clifton is no stranger to the gas shipping business: he rose from Cadet to Master aboard gas carriers before taking a Nautical Studies degree (with 1st Class Honours) and working ashore with the UK Marine Accident Investigation Branch (MAIB) before joining Golar and BP Shipping to work in their LNG shipping operations. Under Mr. before he took the Society’s top job.indd 1 Gastech Conference & Exhibition Newspaper 27/09/2012 13:21 Tuesday. CD2701_LR_Gastech_half_page_15"x5. The session will close with a surprise announcement—and everyone interested in the technical development of the LNG shipping industry should be there to hear more. engines.2"_CTE. which in turn gives rise to additional hazards like fires and explosions. Theatre C. To find out more visit us on stand C22 at Gastech or see www. Hydrodynamic and nautical studies have been made on floating units for many years. which will make use of the increasingly fractured ice flows in the Arctic region. One of the leading facilities is the Marin Institute in The Netherlands. helping our clients understand the risks associated with the latest technologies so they can operate safely. But now. and Javid Talib. especially with increasing ethane content. The purpose of the course is to address the growing need to improve professionalism in shore management offices as the candidates from the traditional sources. and today we are bringing our expertise to the newest FLNGs. Gas technology is changing fast. A lively debate is set to follow on these new design alternatives . will explain how this new generation of LNGC’s can be designed. and it is likely that each new scheme will be tailored differently to suit local conditions. so he knows the business well from the inside. and their sales manager. Clifton was in charge of shipping at BP’s Tangguh LNG project. Joe Verghese will explain the technology challenges in developing these units and how to mitigate risks when planning development. Clifton was seconded to SIGTTO’s Secretariat. often called the “SIGTTO Session. both of which have been incorporated in new building contracts and are currently under construction. and now that there are at least three floating LNG production units on order. understand it and make it safe. senior risk engineer at ABS will explain how these risks arise and how they can be assessed. Each of the three projects under construction uses different liquefaction technology. director of ECMS. In March 2011. TGE Marine has designed and delivered a number of ships to this design.e. the tsunami that hit Northern Japan damaged the Sendai LNG import terminal as well as the nuclear power plant at nearby Fukishima. 14:10: Floating LNG Gastech audiences have listened attentively to many presentations on floating LNG (FLNG) in recent years. who will take the helm of the Society when Bill Wayne steps down in November. Offshore exploration and gas as a fuel are driving unprecedented innovation in designs. Geoff Green will start by introducing the new LNG containment system developed by Braemar. which is also the first new design to be announced for some years—and promises to be a great opening to the morning. One of the most likely schemes to bring gas to market in the near future is the Yamal project. the interest will be more keenly felt than ever. Clifton’s guidance. For further details please see www.” is once again chaired by the soon-to-be general manager of the Society of International Gas Tanker & Terminal Operators (SIGTTO).Technical track spotlight The course has run successfully for a number of years. Frederic Hannon of Total will explain progress to date. Lloyd’s Register is a trading name of Lloyd’s Register Group Limited and its subsidiaries. gas engines and storage systems. One particular aspect that sets FLNG apart from land-based plants is hull movement. Much of the world’s energy resources are in difficult locations with extreme cold climates. systems and infrastructure. This is the first major public presentation of this new containment system. the basic design of LPG carriers had hardly changed. vice president of the American Bureau of Shipping (ABS). The new design has been developed to overcome the problems associated with partial filling and sloshing.

e.g. the Bontang export facility has also received coalbed methane production from the adjacent Sanga-Sanga field held by Vico Indonesia. Construction of state-owned Gas Authority of India’s (GAIL) 5-mtpa receiving terminal in Dabol. Jieyang and Guangxi.7mt in the first half of 2012. relative to the same period in 2011. in its latest five-year plan. continue to have plenty of opportunities to arbitrage short-term cargoes destined for North America and/or Europe. Part 1 DAVID WOOD. with an initial capacity of 4 mtpa. even when most of the flexibility comes from 15% to 20% of the LNG trades being conducted on a shortterm basis. and to those wishing to benefit from LNG imports quickly. Kochi plans to import LNG from Australia’s Gorgon field. and is being supplied by Total with LNG from Indonesia’s LNG export terminal at Bontang. geopolitical issues and long distances. but intends to develop India’s first LNG receiving terminal is located at Dahej. LNG provides potential opportunities for gas supplies trapped in an oversupplied market to enter profitable markets through exports. Nigeria. rather than long-term contracts.e.. Guangdong. This does not mean. operated by BP. a joint venture between BP and Eni. and divert them to high-paying Asian customers. and its ability to reconfigure and expand gas markets. and then are re-loaded and exported to Asia or other higher-priced destinations. floating liquefaction projects have finally been sanctioned in Australia and Malaysia. China’s imports of LNG increased by some 29% to 6. Indonesia. the ultimate producer of gas can be disadvantaged. and Yemen. This situation means that LNG traders. what happens in some cases now is that cargoes land in North America. each with an initial capacity in the range 2 to 3 mtpa with plans for subsequent expansion. The Nusantara FSRU is stationed in Jakarta Bay. Gazprom. Oman. The Dapeng terminal in Guangdong is in the process of being expanded from 6. the ultimate LNG supplier/producer often shares the benefits with its long-term customer. Such treatment of gas producers by some LNG aggregators and traders.. Gastech Conference & Exhibition Newspaper up to three other shipyards to achieve this goal.S. in many cases. The capacity is expected to grow to 30 mtpa by 2015. The world’s largest LNG exporter not so long ago (a position now held by Qatar). imposes higher transit tariffs and risks for major export gas pipelines than LNG options. finally announced that it had agreed to as much as a 10% reduction in gas prices with E. the U. BP signed a gas supply agreement with Indonesia to supply LNG from the Tangguh export facility for use in domestic Indonesian See LNG. Egypt. making it the third largest LNG importer in Asia. East Kalimantan. being forced to buy gas at a high price and sell at a lower price is never going to be a profitable model. Malaysia. northern Norway. it has helped to plug energy shortfalls following the March 2011 Fukushima nuclear accident in Japan and the large-scale outages of nuclear capacity. The U. In addition to conventional gas. India imported 12.7 mtpa to 13. This has led to several European power utilities posting large losses in recent periods. the Kochi terminal will have a capacity of 5 mtpa. it is important to not get too carried away with these positive developments. to date. However. however. Energy Information Administration (EIA) statistics for LNG imported and reexported from the U. Trinidad. Whereas China was able to secure LNG supply for its first two LNG terminals at favorable prices (i.E.S. In Northwest Europe. it has demonstrated a capability to respond to dramatically changing market conditions and redirect cargoes to various destinations. in Indonesia’s Papua province. While the Dahej terminal has a nominal capacity of 10 mtpa. This applies. LNG has also competed effectively in Asia against oil products during sustained periods of high oil prices. albeit in ways not envisaged a few years ago. which had resisted calls by its customers to discount the prices of its oil-indexed contracts since 2009. Consequently LNG’s influence is expanding in all gas-trading continents. caused by the take-or-pay elements of their long-term pipeline gas contracts. it builds LNG carriers at the Hudong shipyard. Currently. as they are often referred to. Qatar. Nigeria. Norway and Russia). Europe and North America are covered in Part 2. the U. suggest that several such re-exported cargoes have been traded over the past year or so. and when cargoes are diverted from their contract destinations to higher-paying alternatives. If these pioneering projects prove to be efficient and costeffective. has persisted from 2009 to 2012. In Asia. In 2011. In North America.30 / MMBtu. UK Since 2011. page 12 . The imbalances and disparities between the North American. Lincoln. which is scheduled to run in Day 4. with additional cargoes coming from Algeria. including the crossing of transit countries. something that cannot be done easily through gas pipeline systems. several others are in planning at Yacheng. Kerala. and Japan. ASIAN DEMAND China. is nearing completion and should be fully commissioned in 2012. lacks an LNG import facility. according to the Beijing-based General Administration of Customs data. several more are likely to follow over the next decade.. The import and export statistics quoted in the article are reported by the BP Statistical Review of World Energy (June 2012 and earlier editions). This trade is very lucrative. even if contractually possible. Indonesia commissioned its first FSRU in April 2012. Petronet LNG set up the country’s first LNG receiving and regasification terminal at Dahej. the German power utility. with an LNG cargo from Snøhvit field for markets in Spain. India has emerged as a major Asian LNG import market over recent years and is set to continue its growth with the building of new receiving terminals. In such The Arctic Princess leaves Melkøya port near Hammerfest. and caused partly by more abundant LNG supplies from diverse sources. and is in the process of building another terminal at Kochi.ON. and some shortterm and medium-term diversion cargoes for ongoing LNG supply expansion. which is contracted to supply some 11. in July 2011. In addition to the five terminals under construction (Zhejiang. This improves security and diversity of gas supply. and import gas pipelines. Gujarat. China’s state-owned companies have entered into a series of long-term oil-indexed contracts with LNG projects under construction in Australia and Papua New Guinea. sustainable supply around the globe. U. Most of the LNG arrived from Qatar (76%). that it will need up to 60 new LNG tankers by 2020 to service its LNG requirements and is planning to build most of them in China. Zhuhai. Having extolled LNG’s virtues. China estimates. While Dahej is importing LNG from Qatar.A. and cheaper short-term gas traded at hubs.LNG demonstrates market power and versatility. This is due partly to lower gas demand caused by an economic recession. as five more plants under construction are added along the country’s coastline. Pertamina is mulling conversion of the aging Arun LNG export terminal in North Sumatra into an LNG receiving terminal to take gas from the Tangguh LNG export facility. most-efficient means of transporting large gas volumes from a gas-resource-rich region to a major market. European and Asian gas markets result in a number of negative outcomes for gas players along the supply chain. which currently acts as a bottleneck limiting access of many customers to LNG. Australia. aggregators and portfolio LNG players.g.S. forming part of the ongoing expansion to 2015. There are plans to expand pipeline capacity within India. GAIL began commissioning the long-delayed facility in second-quarter 2012. DWA Energy Limited. the LNG sector has continued to demonstrate its global appeal. both feeding into a major gas market. and seems likely to fuel disputes between them in the future. behind Japan and Korea. tends to lead to a dimension of competitiveness and flexibility.S. if it does not share in the benefits of sale of the re-loaded cargo. However. is unlikely to foster long-term sustainable relationships between gas buyers and suppliers. it is more of a challenge now. Norway. Egypt. The sustained differential between longterm pipeline gas in Europe. The government reduced GAIL’s pipeline tariffs in July 2012 in attempts to further promote gas from third parties reaching customers. In June 2012. The current capacity of the country’s five existing LNG receiving terminals is about 18 million tons per annum(mtpa).. and acts to moderate gas prices in that market. particularly in South America and the Middle East.. Hainan. The increasing number of countries that intend to deploy FSRU vessels is testament to the appeal of limited infrastructure requirements to smaller or seasonal gas importers. the Middle Eat and South America. at an average cost of about $11. Furthermore. Asian gas buyers locked in to oil-indexed prices. in 2004.e. Maharashtra. Following decades of being proposed as a viable technology.7 mt. minimal oil indexation) nearly a decade ago. and some producers captured by long-term supply contracts into North America (e. that LNG is poised to displace pipeline gas as the main. 10  Tuesday.5 mtpa. Several projects are in the planning phase to build new LNG receiving terminals on India’s eastern coast that. The rapid deployment of floating storage and regasification units (FSRUs) at strategic locations around the globe to bring in competitive energy supplies continues to open up and expand emerging LNG markets.75 mt of LNG to the FSRU from 2011 to 2012. 9 October 2012 cases. All these positive developments progressively make the LNG industry more diversified and better positioned to provide secure. indexed mainly to petroleum products by the somewhat complacent pipeline gas suppliers (i. A 5-mt FLNG facility by Shell and Reliance at Kakinada in Andhra Pradesh is awaiting a final investment decision for a possible 2014 start-up. Tangshan and Qingdao). providing LNG suppliers with high returns from oil-indexed cargoes. Trinidad & Tobago and Yemen). expanded LNG volumes delivered to gas hubs have shaken up gas markets dominated for decades by long-term take-orpay contracts. but also in parts of Europe and Asia. The presence of LNG storage and regasification terminals. CNOOC and Shenzen Energy were granted permission in July 2012 to build a second LNG receiving terminal at Shenzen. The remainder of this article highlights some of the key developments in the LNG sector since 2011 in Asia. West Java. Photo courtesy of Statoil. on the west coast.

Powering With our comprehensive portfolio of gas solutions. ©2012 General Electric Company Photo courtesy of Adriatic LNG . GE works by leading progress together. and pipeline to storage we’re ready to help you power the world. spanning from onshore to offshore. LNG to FLNG.

This shortage has prompted commitments in 2012 to expand the Quintero plant from a 2. In 2011. commissioned the $900 million 5-mtpa terminal. but as of July 2012 had failed to agree on a price with Qatar. Taiwan continues to receive LNG at its two receiving terminals (Taichung and Yung-An).6 km offshore and in a 50-m water depth. Abu Dhabi announced plans in March 2012 to build an FSRU in Fujairah (i. with supplies coming mainly from Trinidad. the U. Dr. BP outbid Gazprom and Eni to win Israel Electric Corporation’s liquefied LNG purchase tender in July 2012. Australia. Vietnam. Shell’s entry into the remote offshore Masela Bock to join Inpex brings a little closer the development of the Abadi natural gas field in Indonesia’s Arafura Sea using FLNG technology. Thailand has imported LNG cargoes from a number of suppliers over the past year. Qatar. 1 2 DAVID A. contract evaluation and senior corporate management. the Philippines. This retaliation has required Argentina to compete with Asian buyers for spare cargoes at higher prices. Japan’s commitment to LNG is robust. including short-term deliveries from suppliers throughout the world. Malaysia. An FSRU operated in Dubai by Shell since 2009 imported more than 1 mt in 2011.S. leading both the Tamar and Leviathan gas field development projects. but with spot cargoes also arriving from Australia.. and with Turkmenistan for the construction of the Turkmenistan-AfghanistanPakistan-India (TAPI) gas pipeline. i. experiencing 43% growth over five years. at a time when many LNG suppliers are looking to place short-term cargoes into Asian markets. This situation has prompted Israel to increase the pace of its efforts to develop its recent large offshore gas finds and resort to LNG imports in the interim. Both 12  Tuesday. In February. each with 0. The year 2012 has been a turbu- Gastech Conference & Exhibition Newspaper lent year for the LNG sector in Argentina. 8. MIDDLE EAST DEMAND Israel. Oman. it commissioned an LNG receiving terminal 3 km offshore Sungai Udang. Singapore makes little secret of its desire to become a major LNG trading hub. Myanmar. A feasibility study for another regasification terminal at Johur is also underway. As an example. due to economic weakness and over-supply of gas in Europe and North America in 2012. due to ongoing disputes regarding its nuclear ambitions and tightening sanctions.2 mt.LNG. Spain and the UAE. Chile has imported LNG since 2010 through two locations: Quintero and Mejillones. U. WOOD is the principal consultant of DWA Energy Limited. Brazil has two operational LNG regasification terminals. Petrobras plans to bring a third terminal online in Bahia state in 2013. two floating storage units (FSUs— converted LNG carriers) with a 3. Energy Information Administration. . onstream 2009). .5-Bcma capacity. Hence. due to drought. with Kogas being the single largest LNG buyer. and Yemen.. Pakistan began negotiations for 0. the Tamar partners signed a 15-year gas sales agreement with state-owned utility Israel Electric Corp for pipeline supplies and reported interest from Gazprom to sign a long-term LNG supply deal for up to 3 mtpa. to fill the gap until supplies of gas from Tamar field become available by pipeline to Israel. and the fact that it is building new combined cycle gas turbines. Brazil is hoping to liquefy the large associated pre-salt gas reserves discovered offshore Brazil. and fraught with political and commercial risk. Japan imported 79. in that order.S.8-mtpa throughput capacity and a 3-km subsea pipeline connecting to a new 30-km onshore pipeline that links into the existing Peninsular Gas Utilisation (PGU) pipeline network. This is strategically significant. Malaysia. Nigeria.000 m3 of LNG and delivering approximately 180 MMcfd. Indonesia.E. trading the LNG for biodiesel derived from Argentina’s prolific soya crop. Kuwait imported some 2.2 Bcfd with demand at 5. Malaysia. In 2011. to be the world’s largest LNG importer. June 2012.A. Several of these cargoes were originally destined for North America. BP is reported to be commencing delivery of two LNG cargoes per month to the Hadera FSRU from December 2012 for six months. Nigeria. Indonesia is now embarking on a more complex LNG strategy that involves continued exports of large quantities of LNG under its longterm supply contracts to East Asian buyers alongside movements of LNG.e. and the shortfall set to rise to 3. In 2011. located at Map Ta Phut in Rayong province. supplies came from a diverse range of locations: Egypt. Trinidad. ■ REFERENCES BP Statistical Review of World Energy.75 mtpa of LNG from diverse sources (i. it received about 12 mt of LNG. in that order. including imports. In June 2012. Pakistan has awarded LNG import licences to three companies planning to sanction three separate FSRU facilities at Port Qasim. backed by Singapore. Qatar. Thailand commissioned its first LNG receiving terminal in 2011. Indonesia. In January 2012. specializing in the integration of technical. it also has greater seasonal swing in its LNG demand. June 2012 3 Wood. Brazil imported 0. signed an agreement in November 2011 with Daewoo to provide a floating liquefaction vessel to be operational by 2016. with a target of being operational by 2020. In 2011. Like its neighbor. Global Energy Infrastructure Pakistan stated that it would complete establishment of the first FLNG by October 2012. most of which came from a long-term contract with Qatar. LNG is likely to become a more widely used energy source to supply some of the islands that are currently dependent upon burning expensive distillate fuels for power generation. Singapore. Jordan has announced plans to mitigate the pipeline gas supply interruption from Egypt by building its own FSRU facility in the port of Aqaba within the next two years. but subsequently diverted to secure high prices. an increase of 14.). During early 2012.A. Japan set a record for the most LNG that it had ever imported in a single month. Malaysia. In March 2012. It has posted significant growth in its demand over the past few years. risk and strategic information to aid portfolio evaluation and project management decisions. and on to Thailand’s existing pipeline network at Erawan.4 mt. Singapore.” Journal of Natural Gas Science & Engineering. by far. South Korea is slightly less diversified than Japan in the context of the number of countries from which it imports LNG. Qatar. which is impressive. Qatar and Spain. onstream 2008) and the other one in the southeast (Guanabara Bay. Several Mubarak-era Egyptian ministers and businessmen have been tried and imprisoned for selling the gas to Israel at what is claimed to be below-market rates. PTT. Melaka. To meet rising fuel demand. the stateowned entity in Thailand. growth in LNG demand is unlikely to come from Japan in the medium term. This arrangement followed unsuccessful attempts by Enarsa to reduce prices of cargoes supplied under oil-indexed contracts. Wood has more than 30 years of international oil and gas experience spanning technical and commercial operations. fiscal. and Egypt froze supplies to Israel early in 2012.2 mt of LNG. There is an option to expand throughput to 360 MMcfgd as demand increases. requiring significantly more LNG during its cold winter months.5 mt of LNG in 2011. 9 October 2012 pipeline projects are expensive. for which an Indonesia-Thailand gas pipeline is to link supply from that field to the Thailand-Malaysia Joint Development Area (JDA). enough to provide power generation capacity of up to 1 is an ambitious project aimed at linking gas supplies among Indonesia. economic. Malaysia. One is located in the northeast (Pecém. as that waterway is under constant threat of closure to shipping from Iran. Malaysia. Indonesia. taking into account that this period includes the global recession of 2008-9. Nigeria and Trinidad. importing 36. The FRSU is expected to be operational by year-end 2012. Noble Energy. to supply a network of LNG receiving terminals. mainly from Qatar. Estimated gas supply in Pakistan is some 4.” A gas pipeline built to supply Israel and Jordan from Egypt has been blown up some fifteen times since 2011. South Korea is the world’s second largest LNG importer. Russia and Yemen were South Korea’s major gas suppliers in 2011. Negotiations have been underway for several years with Iran for an import pipeline. In July 2012. demanding a higher price for the gas it supplied. The large reserves of the Tamar and Leviathan fields dwarf Israel’s energy needs. The proposed Trans-ASEAN (Association of South East Asian Nations) Gas Pipeline (TAGP). The outlook for LNG imports to Japan is uncertain in mid-2012.: A review and outlook for the global LNG trade. shows that its LNG demand growth should return over the long term. pp 16 -27. LNG delivered at Singapore could ultimately be fed into TAGP and delivered onward by pipeline (or LNG) across Southeast Asia. Nigeria. November 2012. Although currently an LNG importer. Brunei and Thailand. which includes a significant shortfall in the ability of its domestic gas production to meet demand. Natural Gas Monthly. Gas supply from Egypt was one of the casualties of the “Arab Spring. Malaysia has made key advances on LNG imports and exports in 2012. and Pakistan Gas-Port expected to complete the third vessel by 2014. Nevertheless. which was up from 69. a new LNG receiving terminal project was announced for Lahad Datu in Sabah to feed a 300-MW power plant to be commissioned in 2015. Egypt.0 Bcfd by 2016.75 mtpa and northern Chile power producer GasAtacama to award Golar the contract to provide a long-term FSRU at Mejillones from 2015. Jamaica announced in July 2012 that Samsung had won a tender to build an FSRU to receive LNG imports for that nation. In June. Equatorial Guinea. Morgan Stanley is reported to have delivered some LNG cargoes to Argentina through a barter arrangement. Petronas signed a flexible LNG supply contract with Statoil for the delivery of about 1 Bcm of gas over threeand-half years. Pakistan suffers an energy crisis.S.2 mt in 2010. using FLNG technology to satisfy its relatively small-scale LNG import requirements. D. UK. 9.5 Bcfd of LNG supply with Qatar and Algeria. Kuwait announced in 2012 that it plans from 2013 to import LNG year-round. The Indonesian government announced in June 2012 that it was expecting $20 billion to be invested in that project from 2013. were Japan’s major gas suppliers in 2011. High LNG prices led Argentina to sign a deal with Bolivia to supply additional pipeline gas from July 2012 to replace some of its LNG shortfall.4 Bcfd. It will be capable of storing 170. Trinidad and the U. as a significant part of its nuclear power capacity comes back on-line. continued from page 10 power supply. Chile’s gas imports rose sharply in 2011 to meet a shortage of hydroelectric power supplies.5-mtpa capacity to 3. Qatar. The country’s LNG receiving terminal is now 80% complete and on track for completion before the end of 2013. United Arab Emirates (UAE) is planning to expand its LNG imports to meet domestic needs. once this terminal is operational. but with spot cargoes also arrived from Australia.e.e. However. as that country is seeking a full oil-price indexation pricing mechanism. This is part of plans to add an additional liquefaction train to that export facility. with a capacity of 500 MMcfgd. He can be reached at dw@dwasolutions. In 2011. Jamaica. Kuwait has been importing LNG since 2009 during the summer season through an FSRU operated by Excelerate. the Emirate with a coastline outside the Straits of Hormuz) to bring LNG into the UAE from 2014 without having to ship it through the Strait of Hormuz. A vital component of that scheme is the development of the massive CO2-rich East Natuna gas field offshore Indonesia. using an FSRU being installed by Excelerate about 10 km off the coast at Hadera. substantial gas reserves remain for export through liquefaction. with about 75% delivered under long-term cargoes. Japan continues. The energy shortfall resulting from the shutdown of Japan’s nuclear power capacity from March 2011 through to mid-2012 further increased its demand for LNG (together with petroleum products and coal) for power generation. Japan’s economy has struggled for more than a decade. The nationalization of YPF led to Repsol cancelling its LNG supply contract in May 2012. Construction relating to a second 5-mtpa unit at the same location is expected to start soon.. Energy Corporation EVTL expected to complete the second by December 2012. Vol. While 70% of the Tamar gas is designated for domestic supply to Israel.5% on the year. Russia and the U. and additional cargoes arriving from Egypt. and the impact of the March 2011 tsunami has further dented its economy. The new-build FSRU will be moored approximately 1. “2012. SOUTH AMERICA DEMAND Argentina imported more than 3 mt of LNG in 2011 through its Bahia Blanca FSRU facility. which consists of an island jetty re-gasification unit (JRU). Israel is likely to become both an LNG importer and exporter over the next few years.

The FIRETEX range includes epoxy thermal insulation for protection against ‘cold shock’ and epoxy fire What is the exhibition theme for Sherwin-Williams at Gastech this year? This year our exhibit theme focuses on protecting life and assets. Gas processing does also present its own unique set of challenges.100°C.200°C. leading to significant damage and the potential for a catastrophic event. for 17 years.Protecting your facility from fires and cryogenic spills Roger Williams is Sherwin-Williams’ global market director for fire protection. A set of new international regulations are coming progressively into force. is released at pressure. is ideally positioned as the preferred partner for the implementation of clean. and bunker tanks for all types of vessel. offering coating solutions to meet the needs of upstream. this can result in steel structure failure. midstream and downstream segment. The resulting flame can impinge surrounding areas with significant velocity and be highly erosive. through its experience in the design of LNG handling and storage systems. proofing for protection against pool fire and jet fire. How do hydrocarbon pool fires and natural gas fires differ? A hydrocarbon pool fire is a fire where hydrocarbon fuel is burned at atmospheric pressure. the release of polluting exhaust gases (SOx. FIRETEX M90-02 provides a competitive. globally. the cargo. With improved char strength. Tel: +33 (O)1 30 234 789 E-mail : commercial@gtt.France Ex ce ty e ion rk en cy GTT has solutions for land storage tanks. and those that are suitable for pool fire protection only. with greater heat flux and significant erosive potential. He has been involved with fire protection for more than 25 years. It is essential that the chosen product has been tested to the relevant standard for the fire protection required. fe What preventative measures would you take when outfitting an FLNG vessel to ensure against a catastrophic cryogenic spill? The project will determine the risks associated with the specific process design. Tell us what you are most looking forward to at Gastech. cost effective solution for protection. service and logistical support unmatched by other coatings companies in the market. In the event of hydrocarbon pool fires.herveburon. especially where LNG is concerned.gtt. NOx. CO2) will be restricted. both at sea. when fire ensues. Conception: www. 78470 Saint-Rémy-lès-Chevreuse . beginning with an ownership interest in a fireproofing application company for 16 years. It is also possible for cargo contained in localized storage vessels to become subject to a rapid rise of temperatures. In the event of “cryogenic spill. now a member of the Sherwin-Williams family. Williams recently to talk about fire coatings. marketing and operations for Leighs Paints. being by far the cleanest and probably the cheapest of all fuels comes to mind as the most obvious alternative. the temperature climbing up to 1. SherwinWilliams is the oil and gas industry’s global asset protection partner. gas and petrochemical industries and our pricing is not related to spot markets. Based in the Gastech Conference & Exhibition Newspaper Tuesday. Whether hydrocarbon liquids are spilt. temperatures can reach 1. ■ LNG Bunkering:: GTT solutions Sa Does gas processing require a different set of preventive coatings? The products used for jet fire protection may or may not be the same as those used for hydrocarbon pool fires. Natural gas is priced much lower than crude oil. Hydrocarbon Processing caught up with Mr. such as natural www. which will impose the use of cleaner fuels. the name originating from one of the very early tests carried out where a ‘pool’ of liquid hydrocarbon was ignited. The FIRETEX range of products includes those that can be used for both pool fire and jet fire protection. greatly reduced thickness and an industry leading range of steel sections covered.” there is significant risk of cold-induced brittle fracture of carbon steel. We are committed to delivering quality. ar sp an wo Tr am Te at ov Inn nc lle at the heart of LNG GAZTRANSPORT & TECHNIGAZ 1 route de Versailles. or fire resulting from spillage of cargo. Are your products priced differently to serve the natural gas industry as opposed to refiners? FIRETEX provides extremely costeffective fire and cryogenic spill protection systems for use across the gamut of the oil. Sherwin-Williams SOLUTIONS In the short term. thus escalating the situation. due to the extreme cold temperatures involved. value. Gastech is a great opportunity to share with our customers the next generation of fire protection with the launch of our M9002 series. During a hydrocarbon jet fire. Special emphasis will be placed on our FIRETEX passive fire protection and cryogenic spillage protection technologies. efficient and reliable solutions at each step of the supply Is one more intense than the other? Jet fires are significantly more severe than pool fires. Williams has worked in sales. LNG. but this will often require both insulation against cryogenic cracking of carbon steel and subsequent fire protection against either an LNG pool fire or a pressurised release (jet fire). In natural gas fires. or gases escape under pressure. these will be under pressure and are likely to present as a jet fire. GTT. and on land. Roger Williams. 9 October 2012  13 .

EAGC2012_AD Supporting Association Event Sponsors 14  Tuesday.theeagc. 9 October 2012 Gastech Conference & Exhibition Newspaper .75x15inches_HR 20/09/2012 05:28 Page 1 The Leadership Summit for the European Gas Community Join Europe’s gas leaders in Vienna.ON Energy Trading John Baldwin Group Political Adviser BP Edouard Sauvage Director Gas GDF Suez Register today at www. Speakers include: Stefan Judisch Chief Executive Officer RWE Supply & Trading Umberto Vergine Chief Operating Officer Gas & Power eni Jogchum Brinksma Managing Director Citigroup Global Commodities Antonio Llardén Chairman & CEO Enagas Robin Baker Managing Director. Global Head of Energy Project Finance Societe Generale Paul Van Gelder CEO and Chairman of the Board Gasunie Chris Finlayson Executive Director & Managing Director BG Advance BG Group Gareth Griffiths Chief Commercial Officer Global Merchant Trading and Origination E.

in the presence of steam and oxygen. Lithuania • Operation of a fleet of eight LNG Carriers. consisting mainly of H2 and CO. lignite coal) •  Coal-to-ammonia plant for Tianji Coal Chemical Co. steam and O2 (ASU. while the gasification agents. and synthesis technologies to further improve the Lurgi FBDB coal gasification technology. All types of coal ranks have been commercially gasified.5 •  Gas production: ~ 2. are fed from the bottom (1). 9 October 2012  15 . Vol. chemicals and transport fuels. depending on the amount of ash produced via the ash lock at the bottom. The gasifier operates below the ash-melting temperature the competitive advantage of the Lurgi FBDB gasifier is the highest for low-rank. These figures are coal-specific and will vary with coal rank and ash-melting properties: •  H2-to-CO ratio: 1. as shown in the diagram. bituminous coal) •  Coal-to-SNG plant for Dakota Gasification Co. Air Liquide Global E&C Solutions ■ This process information is excerpted from Hydrocarbon Processing’s 2012 Gas Processes Handbook. Fu. Judas. Steam is used as a moderator to ensure that no melting/clinkering of the ash occurs. raw syngas. References Blostein. G. The raw gas is cooled (and possibly shifted to the H2 /CO ratio required by the downstream synthesis process) in the gas cooling section (2) of the gasification island. resulting in Zero Liquid Discharge (ZLD). October 2010. the dry ash leaves the gasifier at a certain frequency. Gruson and F. The liquid chain then enters into the wastewater treatment unit (9). please visit www. along with optimum performance featuring modular design. D. The required steam-to-oxygen ratio will be dependent on the melting properties of the ash (~ 4 kg steam/Nm3 O2 for high-melting ash. Coal conditioning upstream of a Lurgi FBDB coal gasifier is appreciably low compared to the coal pretreatment requirements of other coal gasification principles. The purpose of the Lurgi FBDB Mk+ gasifier is to gasify coal under pressure of approximately 50 barg. The raw gas will also contain CH4 and higher hydrocarbons. Devaux. better choice of material and special manufacturing requirements. including two regasification vessels FLNG • A highly skilled organization with a wide range of competence gained through LNG operation since 1973 • A fully integrated company including in-house fleet management Transportation www. Indonesia and Klaipedos Nafta. and J. reliability and availability by having better equipment design features. (Beulah. the new generation Mk+ gasifier is designed for doubled single-gasifier capacity and elevated pressure (design pressure of 60 barg).5 •  kg O2 /kg coal. the Lurgi CLL unit (8).3–0. China. synthesis gas cleaning.. The produced syngas exits the gasifier at relatively low temperatures (approximately 400°C–600°C). SNG plants). “Coal Gasification for DRI: A New Cost-Effective Ironmaking by Maritime Colours • Three Floating Storage and Regasification Unit’s (FSRU’s) on order from Hyundai Heavy Industries (HHI).000 Nm³/ton coal. The elevated pressure of the Mk+ gasifier favors even higher CH4 yield.” Steel Tech.hoeghlng. January 2012. These installations include: •  The world’s largest coal-based Fischer-Tropsch chemicals and fuels production plant. daf: 0. Note that part of the CO shift has already taken place inside the Lurgi FBDB reactor due to low-reaction end temperatures resulting from the countercurrent pro- cess principle and excess steam present from the agent. however. reduction gas for direct reduction iron (DRI). North Dakota. (Yima. high reliability. to produce synthesis gas. Description Two sizes of the Lurgi FBDB gasification reactor are commercially available in the form of the Mark 4 (Mk 4) and Mark Plus (Mk+) gasifiers. has led to the latest Mk 4 (design pressure of 40 barg) reactor. 10). No. This is followed by the recovery of phenols in the Lurgi Phenosolvan unit (7). producing dry. and gasification efficiency with low oxygen consumption. Two of the units on long term contracts to Perusahaan Gas Negara. To further enhance the economic viability for high-capacity coal gasification projects (e.g. taking into account higher safety. 5. which takes care of the final treatment of the water to the requested purification extent. built for Sasol (Secunda. the water can be completely reintroduced to the water circuit of the plant. Licensor Lurgi GmbH. (Tianji. which makes the Lurgi FBDB process specifically suitable for SNG production. Downstream gas purification units (configuration dependent on final product) purify and condition the generated synthesis gas to meet the required product specification—e. and up to ~ 7 kg steam/Nm3 O2 for low-melting ash). anthracite coal) •  Coal-to-methanol plant for Yima Coal Gasification Co.” Sino-Global Energy. The screened coal feedstock (particle size 5 mm–50 mm) is fed into the gasifier from the top via twin coal locks. Liquid ammonia is recovered in the downstream ammonia recovery section. M. Then. US. Zhu. and Lurgi Methanation (5) for SNG production. hence. 1. Economics Characteristic figures are presented for a Lurgi FBDB Mk+ gasifier per ton of typical lignite coal feedstock [on a dry-ash-free (daf) basis]. South Africa.5–2. Coal and ash locking are a batch process. including synthetic natural gas (SNG). over 100 gasifiers based on Lurgi FBDB gasification technology are in operation around the world. which comprises the Lurgi GLS unit (6) for extraction of the valuable co-products (tar and oil) formed during gasification. Lurgi Rectisol (3) to recover naphtha and remove sour gases. Continuous improvement. B. coal-to-liquids (CTL).com Neptune Lurgi Fixed Bed Dry Bottom (Lurgi FBDB) gasification process Application Lurgi FBDB coal gasification is a well-proven technology for the conversion of coal to synthesis gas. for delivery 2014. ASU Oxygen Steam Elemental sulfur HP steam Lurgi FBDB gasification Coal Sulfur recovery unit Ash CO shift and gas cooling Tar Lurgi Rectisol Methanation Synthetic natural gas CO2 rich gas Condensate Lurgi GLS unit Lurgi Phenosolvan Lurgi CLL unit Wastewater treatment Liquid ammonia Phenols Naphtha Oil Clear tar Gastech Conference & Exhibition Newspaper Tuesday. For more information about the handbook. Air Liquide Global E&C Solutions used its experience in gasification. “Lurgi FBDB Coal Gasification Technology and Latest Advances. The strongest attribute of the Lurgi FBDB gasification process is its long track record for large-scale applications over many years of operation. daf •  CH4 in raw gas: 9–16 mol% •  Carbon conversion: > 99% •  Cold gas efficiency: > 87% •  Thermal efficiency ex-gasifier: > 94% •  Thermal rating: > 500 MWthermal Installations To date. high-ash-content coal. depending on the rank and properties of the coal. sub-bituminous coal). Lurgi Sulfur Management (4) to recover sulfur. China. Gas liquor condensate accumulated in the cooling section (2) is treated in the liquid chain of the process... The process was made more environmentally friendly and suitable for a number of applications.g.gulfpub.

Applications ranging from dehydration to compressor trains have thermal requirements in LNG processing. The terminal enclosure on the heater bundle shown in Fig. The example shown in Fig. clean the affected surfaces as needed before putting the heat exchanger back in service. B and A T1-6 Europe EN60079-2 Zone 1 or 2. and one global organization. The increased focus assures that electrical arcs and surface temperatures will not reach levels that could ignite a hazardous mixture in normal service. The presence of hazardous gas in or around equipment. PressurizationDusts (Ex pD). Oil immersion (Ex o). IEC 60079-1 and/or FM 3600. Both of these protection methods are commonly employed on DEHEs. UL 60079-1. The electrical load connection enclosure installed on the heater bundle. B or C Temperature T1-6 Canada E60079-2 Class 1. Croup II A. B or C T1-6 Australia IEC 60079-2 Class 1. Location Standard Area classification International IEC 60079-2 Zone 1 or 2. the “e” type of increased safety equipment is intended to increase the safety. •  Powder filled (Ex q) for gas atmospheres and Protection by enclosuresDusts (Ex tD or Ex t). It is important to periodically inspect type “d” electrical enclosures to look for evidence of arc tracks. DEHEs and IEHEs are used to heat gases such as nitrogen. Group II A. Division 1 or 2 Group D. type of protection “n” (Ex n). For example. needs to be specially designed. B or C T1-6 USA NEC 505 ISA60079-2 Class 1. For more information. A certification for a “d” protected DEHE can apply to the heat exchanger bundle. If tracking evidence is found. compressors and gas seal panels. visit www. which promotes further arcing and potential failure of electrical bussing or termination. such as re-boilers. Some examples of auto-ignition temperatures for a few gases are shown in Table 2. In comparison to the “d” type protection method. The following is a comparison of both protection methods: Table 1. or a flameproof enclosure. the International Electrotechnical Committee (IEC). As a result. Zone 1 or 2. The design of the enclosure must assure that they are sufficiently cool when they reach the outside of the terminal enclosure. In hazardous locations. Group II A. such as the type of hazardous gas and terminal enclosure volume. hydrogen and hydrocarbons. Electrical equipment. vapor or dust occur. C. Encapsulation-Dusts (Ex mD •  Intrinsic safety-Dusts (Ex iD) This article will focus on the type “d” and “e” methods available in the IEC and European Normalization (EN) standards. Extent of coverage. Special attention is given to the design of the control system to assure the DEHE can be shut down as needed before surface temperatures reach levels that could ignite a hazardous atmosphere. oils. Zone 1 or 2. 16  Tuesday.” the hazardous certification covers the entire heat exchanger bundle or exchanger. while providing relief of the resulting internal pressure via flame gap(s). There is a com- mon misconception that a hazardous certification nameplate covers only the terminal enclosure. thus reducing electrical surface resistance. Gases exiting at a temperature above a safe limit could ignite any surrounding hazardous gases that might be present. Encapsulation (Ex m).com. 9 October 2012 Fuel or Chemical (°C) (°F) Acetaldehyde 175 347 Acetone 465 869 Acetylene 305 581 Gastech Conference & Exhibition Newspaper cable standards are: EN 60079-7 UL 60079-7 / IEC 60079-7 FM 3600. increased convective cooling features. such as water. 1. •  Intrinsic safety (Ex i). The DEHE terminal enclosure is constructed. there are additional safety concerns for workers and the general public that need to be addressed. Ignition inside the terminal enclosure will cause the gases contained within to have an elevated temperature. There are many installed DEHEs around the globe with the “d” protection method. acids. solutions and other fluids. additional measures are employed to increase the level of safety.Comparison of hazardous location protection methods for direct and in direct electric heat exchangers Dennis Long. They are also used in a wide variety of industries including crude oil refining. depending on factors. These devices often include oversized electrical bussing. DEHEs using the “e” type of protection method can use terminal enclosures capable of withstanding an explosion. Watlow In this article we want to explore the need and availability of protection methods for direct (DEHE) and in-direct (IEHE) electric heat exchangers. There are many country and national standards that apply. includes one type of protection method suitable for hazardous locations. such that it can withstand an internal explosion. An enclosure with a hazardous location nameplate does not mean the certification is transferrable to a higher level assembly. The gap and distances for either a threaded or machined surface escape path must be tightly controlled. Pressurization (Ex p). cost and durability. This condition could lead to electrical arcing between load connection terminals. The ignitable concentration is not the same for each gas. aka circulation heaters. Whether the protection method is “d” or “e. Protection methods are simply the various approaches used to insure the equipment is safe to operate in the location of installation. The trade-off curves include considerations like physical size. Zone 1 or 2. gas processing and transmission. Each DEHE has a terminal enclosure designed for electrical connection to the heater load. An example of a circulation heater bundle for a DEHE with a hazardous location electrical enclosure. a substantial part of electrical codes are devoted to the discussion of hazardous locations and the definition of areas classified as such. In electrical engineering. Due to the dangers of electrical equipment in hazardous locations. There are many different types of protection methods. This residue can cause electrical paths to become polluted. a hazardous location is defined as a place where concentrations of flammable gas.watlow. Examples of electrical code standards. Each gas has its own auto-ignition temperature to consider when present in ignitable concentrations. 1 is an example of a mating machined surface construction. Group II A. Buyers should be sure their DEHE has been properly designed. It should be noted that while a properly designed terminal enclosure will withstand the explosion as noted earlier. tested and certified for the intended installation. petrochemical and pharmaceutical. Within each standard there are different protection methods. Liquefied natural gas (LNG) processing applications that utilize heat exchangers. B or C T1-6 USA NEC 500 NFPA 496 Class 1. Group II A. An example of a circulation heater bundle for a DEHE with a hazardous location electrical enclosure is shown in Fig. Contact your thermal engineering professional to help with the decision around which protection method to choose. electrical arcs or high surface temperatures can ignite the surrounding atmosphere. or to the bundle and the pressure vessel in which the bundle is installed. are routinely located in hazardous locations. as well as increased internal volume. chemical reactors. it is likely that residue from the combustion will be deposited on interior surfaces of the terminal enclosure. Arcing generally leaves an arc path. tested and certified as an assembly for the type of protection desired. ■ Dennis Long is the global marketing director for the Energy Processes and has more than 29 years of experience at Watlow in the design and application of DEHEs. The “d” and “e” type of protection methods are two commonly employed protection schemes on DEHEs and IEHEs in these applications. the IEC has at least the following explosion-protection schemes: •  Flameproof (Ex d). which can cause danger for employees working in such environments. requires heat exchangers that are designed and certified for the installation. 1. Examples of appliapplicable standards are EN 60079-1. Examples of gas ignition temperatures Temperature Fig. Table 2. The “d” type of protection method will be discussed later in this article. Increased safety (Ex e). B or C T1-6 Flameproof enclosure. such as the labyrinth created by threaded fittings or mating machined flanges. The various standards provide acceptable flameproof gaps for the various acceptable joint types. There are trade-off curves associated with the selection of all the available protection schemes. electric or non-electric. LNG. 1 illustrates the protection method known as “d” type. See Table 1 for examples of the standards. . as well as liquids. such as a DEHE. shown in Fig. 1. Examples of Increased safety. The thermal needs are routinely met with a variety of heat exchanger styles. but they more typically use sheet metal types of enclosures. that write standards for hazardous locations. All DEHE’s used in a hazardous locations should include certifications covering the complete heat exchanger and not just the terminal enclosure. In the case of a DEHE.

Tripathi Chairman & Managing Director GAIL (India) Ltd S.gasasiasummit. Mitchell Baer Director Office of Policy and International Affairs The United States Department of Energy Financing Regional Gas Projects & Infrastructure Katan Hirachand Managing Director Energy Project Finance Societe Generale Regulatory Keynote Address – The United States Industry Support from Recreate PMS(from pdf ) Meet global energy & project leaders and understand the future for gas demand & supply in Asia Book your place today. contact Satish Chandran +65 9355 7849 or email Spaces are strictly limited and subject to availability Gastech Conference & Exhibition Newspaper Tuesday. 9 October 2012  17 .Part of A GASTECH REGIONAL EVENT The Role of Natural Gas & LNG in the Race to Fuel Asia B. Iswaran Minister Prime Minister’s Office & Second Minister for Home Affairs & Trade and Industry Singapore Government Gas Supply & Demand Dynamics Duncan van Bergen General Manager Global Gas & LNG Market Development Shell Upstream International Dr.C.

MCS Kenny & Chairman. J P Kenny Limited LNG as Fuel Operation: Lloyd’s Register Bunkering Infrastructure Study Latifat Ajala. The Gas Processing stream is a part of the comprehensive technical seminar programme comprising 12 different streams. Substructure and System Manager. Adrian Finn. the vice president of completions technology at Baker Hughes. will explain the organisation’s new energy transformation technologies. WorleyParsons Group Commercial Drivers for LNG as Fuel Veronique Pastre-Maravic. R&D Manager. Manager. Lloyd’s Register Session 7 14:55-15:20 Selection of LNG Liquefaction Technology for FLNG Operations John Sheffield. and Rustom Mody. Schmidt. Sheffield said. Andrei Galaev. we are working with many of the world’s most-respected industry associations and organisations to bring together high-level speakers. Ltd. Director of LNG Technology. Science and Technology (IMarEST) will play a key role in presenting a day-long specialist FLNG stream today.” That is why we are proud to present the Gastech Centres of Technical Excellence (CoTEs) as a returning feature at this year’s exhibition.. Technical Director. Senior Process Engineer. Split into 12 streams. Global Strategic Marketing Manager. according to John Sheffield. Closing Remarks Paul Jukes. Science & Technology Offshore Oil & Gas Special Interest Group (SIG) Chair’s Introductory Remarks Luis Benito. Science & Technology Offshore Oil & Gas Special Interest Group (SIG) Closing Remarks Luis Benito. Consultant/Instructor. Business Sales Manager Offshore. Campbell & Co. Vice President. INFRA Technology’s chief technical officer. Advisor Technology. Lloyd’s Register Closing Remarks 15:55-16:00 Closing Remarks Martin Mayer. Trocquet.Centres of Technical Excellence (CoTEs) Technological innovation is a key factor in propelling the global gas industry into the “Golden Age for Gas. John M. Genesis Oil and Gas Christian Aaserud. LNG. Global Product Manager. Special Projects Manager. An industry leader joining Mr. Costain Energy & Process Chair’s Introductory Remarks Paul Jukes. “The gas market has grown beyond recognition in recent years. Institute of Marine Engineering. Sheffield within the same Gas Processing stream today is William P. Clarksons LNG Session 6 14:20-14:45 Factors Determining Full Reclamation or Slipstream Reclamation for MEG Recovery Simon Crawley-Boevey. Daewoo Shipbuilding & Marine Engineering Co. Consultant/Instructor. Director. The CoTEs exhibition show floor seminars are designed to provide a platform for many of the world’s most-respected industry associations and organisations. Senior Process Engineer. Wärtsilä LNG as Fuel Classification: the Viking Project—a Case Study Thanos Koliopulos. within the Project Delivery stream. ■ . despite its enormous importance to the entire supply chain. Douglas-Westwood Ltd Legislative Drivers for LNG as Fuel Peter Catchpole. Floating Systems Group (Melbourne). natural gas and gas liquids have supplied about one-half of total petroleum production in the U. Vice President. Lloyd’s Register for LNG As A Shipping Fuel. and the International Institute of Refrigeration for Cryogenics. Det Norske Veritas Ltd LNG as Fuel Technology: Engine and Propulsion Choices Geir Bjorkeli. technology manager for LNG process engineering at Air Products and Chemicals. Lloyd’s Register Session 2 11:10-11:35 Liquefaction Process Technology for Mid-Scale Plants William P. Systems Sales & Marketing Campaigns Merchant Vessels. a free-to-attend technical seminar programme on the Gastech exhibition floor. Lloyd’s Register EMEA LNG as Fuel Technology: Ship Designs—from a Builder’s Perspective Odin Kwon.. Business Development Manager. Marine Market Analyst. CB&I Fuel Flexibility for Power Plants Onboard Offshore Storage & Production Units Jeroen van Keep. Air Products and Schmidt. CB&I David Healey. Sheffield will be among the speakers involved in the Centres of Technical Excellence (CoTEs). To register for the Gastech Exhibition and to reserve a free place at the CoTEs please visit www. Global Head of Engineering Systems. Rolls-Royce Session 3 11:45-12:10 Efficient Nitrogen Removal from LNG Jorge Arizmendi-Sanchez. a sub-Arctic success story. who will provide significant insights and updates about the latest developments in gas technology. President. INTECSEA. Technology Manager— MEG Reclamation. ■ Tuesday 9 October 2012 GAS PROCESSING FLOATING LNG LNG AS A SHIPPING FUEL CoTE Theatre A CoTE Theatre B CoTE Theatre C Introduction 10:30-10:35 Chair’s Introductory Remarks John Sheffield. Marine. Since the early days of the energy industry in the 1800s. Principal Environmental Specialist. Director. who will tomorrow specifically address innovative completion technolo- Gastech Conference & Exhibition Newspaper gies that enhance well performance in the Unconventional Gas stream. Technology Manager—LNG Process Engineering. Advanced Technologies for Cryogenic Transfer Cyril Morand. MCS Kenny & Chairman. Lloyd’s Register Asia 16:00-17:00 Networking Reception Networking Reception Networking Reception Gas processing is the key to a successful energy industry One of the major technological advances that has revolutionised the gas industry is liquefied natural gas (LNG). SPT Session 8 15:30-15:55 Yamal LNG Project Martin Mayer. Process Technology Manager. Global Strategic Marketing Manager. leading experts will provide a comprehensive and expert insight into many of the technological advances from recent and future projects. of the Gas Processors Association Europe (GPAE). Vice President—LNG. The Institute of Marine Engineering. it is clear that the dawn of FLNG will lead to new and exciting opportunities. Cameron’s Process Systems LNG Subsea Loading Lines Colin McKinnon. Gassco Choosing a Liquefaction Technology for Your FLNG Bryan J. Principal Consultant—Head of Section. Marine. Manager Select Engineering. Technip LNG as Fuel Operation: Shuttle Tanker and Ship-to-Ship Transfer Stephen London Energy Operations. It is an exciting time to be involved in the gas processing section of the energy industry—but one that comes with a multitude of challenges. Johnson Matthey FLNG Containment Systems Holger Kelle. John M. WorleyParsons LNG as Fuel Classification: Design Process for LNG Fuelled Ships Edward Fort. alone. Session 4 12:20-12:45 Design Capacity Assessment of the Norwegian Transport System for Natural Gas by Using a Novel HYSYS and Excel Analysis Tool Craig Branch.gastech. as well as the potential cost-saving benefits to consumers and operators of floating LNG (FLNG). Campbell & Co. and while a major part of that revolution has been LNG. These include the Carbon Capture & Storage Association for Carbon Capture & Storage. Structural Engineering Manager— Technical Investigation Department. 9 October 2012 Yet it is the processing segment of the gas industry that rarely receives public attention. WorleyParsons Europe FLNG: Game-Changing Prospects for the LNG Sector Steve Robertson. John Sheffield of the Gas Processors Association Europe 18  Tuesday. Costain Energy & Process Managing FLNG Project Risk John Maguire. Inc.S. Basic Planning Group Leader. who will discuss liquefaction process technology for mid-scale plants. Other top speakers at the CoTEs include chief executive officer of Sakhalin Energy. Lloyd’s Register Asia Session 1 10:35-11:00 Optimised Design for Tight Gas Gathering Systems Ahsan Iqbal.” Mr. Lloyd’s Register 12:45-13:45 Lunch Lunch Lunch Session 5 13:45-14:10 Desulphurisation and Mercury Removal from Natural Gases Vince Atma Row. Once again. Quantifying Performance from Concept Selection through Detailed Design Carlo Buccisano. President. who yesterday discussed the Sakhalin-2 project. Director of LNG Technology. Dr Vladimir Mordkovich. Inc. Institute of Marine Engineering. Mr. Air Products and Chemicals.

“I know that some British commentators are impatient about this. This particularly “unconventional” source of gas had been investigated by the Cassini spacecraft. I’m all in favor of exploiting new resources. I would welcome as much as anyone a way to boost Britain’s indigenous gas supplies and to reduce energy prices……” A somewhat defiant Davey continued.” Britain is reducing its own emissions through energy efficiency and low-carbon technologies.P. I see unabated gas playing a very significant role throughout the 2020s. Djeloul Bachi-Bensaad. The Royal Institution document set out “the public advantages of disseminating of a spirit of investigation” among the opinion formers of its day. Bechtel Corp. Cox said. Marketing and Shipping Executive. ” Looking toward the future. written by British naturalist and botanist Sir Joseph Banks. projects such as the search for the Higgs boson are important. adopting a second commitment period to the Kyoto Protocol. Cox turned to the preface setting out the aims of the Royal Institution. as we do for all fuel sources. Davey remains committed to taking the global objective agreed upon in Durban last December and taking it further in Doha. to provide the energy security its citizens expect. increasingly. Switzerland. gas is helping many countries cut their carbon emissions. “It is still as relevant today as in 1799. requiring a doubling of the current rate of investment. he cautioned. Gastech Conference & Exhibition Newspaper Tuesday. Statoil. and continuing to build the necessary international architecture. to the power of 12. policies that cater for gas to have a long-term role are crucial. I want to base our approach on the evidence. ■ Statoil. for a stable energy relationship to occur. says that “all that empty space is crammed with them. but a more open. Cox said. to reach a new. which provides evidence of Higgs boson particles by showing the debris caused by their decay. More work needs to be done. Around 20% of existing electricity generating capacity will be shut down over the next 10 years.” while “giving investors some certainty to make long-term investment decisions. including Britain. In principle. on environmental grounds. later this year. In the meantime. said Davey. Cox works on the ATLAS experiment at CERN. In his slot as the Gastech Inspirational Keynote speaker. global marketplace could bring rival suitors. to bring Britain to a new age of cheap energy. supporting UK companies overseas.” Davey said that gas will play an important role in ensuring secure supplies for Britain’s electricity. Director. I know that industry analysts do see shale as a rather different proposition here than in the U. The energy in the Higgs particle field is what lies behind the acceleration of the expansion of the universe. Cox explained that the theory that underpins all our concepts of mass is the existence in space of the Higgs particle (or boson). ■ Panel members listening closely to fellow panelist Helge Lund (left). Davey pointed out the financial ramifications: “We are likely to need something like £110 billion of investment in electricity generation and transmission by 2020. Executive V.” He said that while climate change is a global issue.” said Cox.” If those factors occur. while for the producers. however. Europe has been well-supplied in terms of import diversification. when it comes to energy security. and. And. Energy secretary. through the 2030s and 2040s. will increase competition to secure supply from new LNG sources. We are encouraging diverse and efficient liberalised gas markets. gas will be as important for the UK as in the past. Gas will obviously continue to be the key energy source for heat in many of our buildings in Britain.” mused the Secretary. He introduced several spectacular photographs of Saturn and its moons taken by the “unconventional explorer. included Shigeru Muraki. the industry is indeed in a “golden age. 9 October 2012  19 . Besides being Professor of particle physics. as heat and transport are increasingly electrified. Tokyo Gas. binding agreement for all countries by 2015. and he called for support in doing this.. Professor Cox quickly went on to point out that with the current cost of launching material or substances into space running at US$10. it’s about the security of deliveries and demand. just to maintain the status quo.” The Secretary also commented on unconventional gas. and carbon capture and storage.” said Davey. mass and volume. But in electricity generation too. “They excitedly tout shale gas as a silver bullet. and were delighted this summer to have found evidence of its existence. Avoiding “gas complacency. the climate change challenge will impact the role of gas. addressing Gastech delegates yesterday Monday. or with carbon capture and storage. “I hope it will prove possible for me to give a green light to shale.” he said. as back-up. And it was to test this theory that the Large Hadron Collider was constructed at the CERN laboratory near Geneva.” explained Davey. In the end. “What the Large Hadron Collider does is to help us recreate the conditions that were present less than a billionth of a second after the Universe began.” He said that questions about regulatory oversight and the involvement of local communities need to be answered rather than simply dismissed.” ■ Professor Brian Cox poses for a photo with a fan. The interests of both parties must be taken into account. Scientists at CERN had been using the LHC to search for the Higgs particle. “For Europe. Cox went on to explain that Lunch among friends at Monday’s delegate lunch. continued from page 1 long term. liters of methane. I believe that for some time yet. and we are supporting the opening of new gas supply routes. President and CEO.” he told delegates. Davey said the UK need its rate of investment in energy to increase substantially. global solutions have been elusive.” he warned.000 per kilogram. In recent years. After touching briefly on measurements of energy.S. said Professor Brian Cox of Manchester University. such as renewables. UK officials will continue following a “trajectory to a low-carbon economy. He said he would like to give a copy of this to “every prime minister in every country” to stress the importance of scientific research.” The added integration. “Consumers look at the security of supply. this resource was not one that was going to be exploited very soon. Khalid Sultan Al-Kuwari. on estimating the precise amounts of energy involved. for years to come. math and science graduates in the next few years. After quantifying Titan’s LNG potential as 150 times 10. Yet. UK electricity demand is projected to rise significantly. making progress in closing the gap to our 2°C goal. “That means agreeing a high-level work plan for its delivery. “We need more than 1 million new engineering. Production Division. Let’s be clear. continued from page 1 though small regional differences will always occur. “But I make no apology for being a little more patient than those excited commentators.Professor Cox offers inspirational remarks Eloise Logan Did you know that Titan. And some have accused me of blocking progress on shale. and Bill Dudley. we cannot afford to be complacent now. “Despite the good shape of Britain’s gas market. Cox is a well-known presenter of UK television programs about astronomy and physics. because it had “laid the foundations for your work in the energy industry. however. President and COO. because they inspire the next generation of engineers and scientists. but had clearly sought to tailor his remarks to his audience. concluding. “We are working internationally to encourage investment in new gas production. This theory. is a potential source of phenomenal amounts of LNG? The lakes of methane gas at its poles could contain as much as one-quarter of the world’s total reserves of natural gas and oil.” Lund said. we are encouraging energy efficiency measures. one of the moons of Saturn. he had a free choice of subject matter. Cox showed his listeners the diagram of particle collisions inside the LHC. RasGas. nuclear. over the next 20 years. Yet we should recognise that for now.” which was launched in 1997 and is still transmitting data to this day.” Lund concluded. or in the future. first postulated in the 1960s by Professor Peter Higgs and others. Sonatrach.

and it is one ABS and I have been involved with since the beginning. As well as exhibiting. hailed Gastech as the ideal venue for raising awareness of the GPAE and the benefits it brings to its members. within the midstream sector. market reports or bespoke consulting services. having a presence at a major event like Gastech provides the opportunity to get in front of not only the right people.Technical track focus—Tuesday afternoon.000 dwt. ABS Behind this development lies the increasing demand for gas globally as importer countries seek to balance their energy mix and produce cleaner energy. this might sound like an exaggeration. The class society is also supporting efforts by vessel designers to lead development of innovative solutions that make new LNG shipping and bunkering applications a reality. a free-to- attend technical seminar programme on the Gastech exhibition floor. Prelude will be the largest vessel of its type built to date at 600. “Effectively. costly and time consuming to develop.” he said. a 20” cryogenic triple eccentric butterfly valve and a 20” 600# forged steel ball valve. Offshore South East Asia in Singapore and the Arctic Technology Show in Houston. Infield wants to catch up with delegates and see if there is anything that the Infield System’s team can support them with at present–from client support on how to get the best from your current Infield products and services. Executive Administrator. “By conducting multiple reviews. cryogenic ball. fully welded ball valves and split body ball valves. is present at Gastech with its own stand to present a selection of valves for the gas industry. AMPO’s R&D team is continuously working on the development of new technologies and products. it was extremely successful. I believe it is appropriate. a lot of people.” “The benefit of being here is that we have an ideal opportunity to raise the profile of the GPAE.” ■ . but our aim is to reach out to others. offered a preview of his remarks in an interview with Hydrocarbon Processing. I think it is one of the most exciting areas of LNG. Among then was Sandy Dunlop. A number of big names are moving ahead of the pack and the challenge of providing the fuel is another one that ABS is helping the industry address. as well as providing a regional assessment of the market outlook and an analysis of the number of stranded gas assets worldwide that could be suitable for development using FLNG technology. It is widely expected that this will mark the beginning of a more widespread use of this potentially market changing technology. liquefaction facilities or traditional LNG carriers and transport cargo to existing tanks.” Mr. we will see many more deployed around the world in remote areas and in places where it is impractical or cost prohibitive to build onshore processing facilities. but new people as well.” Bill Sember. Sember. the second edition of its Offshore LNG Market Report To 2018. gate. which will work in the Browse Basin offshore Western Australia. following Shell’s announcement that it has sanctioned the world’s first floating LNG project. While on the face of things. That prediction was proven correct in the form of Shell’s Prelude FLNG unit. in order to offer the best and most complete and reliable solutions to its customers. Sember cited an International Energy Agency (IEA) 2012 estimate that puts recoverable conventional gas resources at around 400 trillion cu m and unconventional resources at a similar size. Mr Dunlop. ABS vice president of global gas development. and global demand is growing. “We’ve heard this era referred to as the golden age of gas. beyond the engineers. market analysis. At Gastech you will also have the opportunity to review the full range of Infield Systems’ products and services. Dunlop said. Gas Processors Association-Europe 20  Tuesday. lift plug and switch valves. With the latest addition of the butterfly valve to the AMPO Poyam Valves product range. within the Centres of Technical Excellence (CoTEs). trucks or to other ships using LNG as a fuel. a cryogenic valves company and a reference supplier of high-specification valves. Floating LNG ‘Golden age of gas’ to drive growth in floating LNG and bunkering projects Bill Sember. He said he was particularly looking forward to the Gas Processing CoTE after the organisation’s presentation at last year’s Gastech conference and exhibition – in Amsterdam—drew a large and influential audience. Cryogenic and high-spec valves AMPO Poyam Valves. We hope to have an excellent audience for the CoTE. are aware of us. It also is equipped for regasification of LNG directly to a pipeline or to a power plant. high pressure ball valves. our proprietary oil and gas databases and our unique GIS mapping system. The launch of this report at Gastech 2012 coincides with a particularly exciting time for this sector of the offshore oil and gas industry. “ABS has been a great resource in developing this product. The company is showcasing our core market intelligence products and services for the global subsea oil and gas industry. speaking on the representative organisation’s exhibition stand. The Infield Systems’ team will be on hand to provide advice and guidance about the products which will best suit your business needs. including conducting the AIP program review. The design also reflects the shift toward LNG as fuel by using natural gas in the dual fuel engines of the tug barge unit. 9 October 2012 Industry leaders and delegates were treated to an impressive selection of stands at the Gastech Exhibition.” said Waller Marine Gas Solutions Vice President Bill Hutchins. This project will be followed closely by several others offshore Indonesia and Malaysia. Infield Systems’ latest Offshore LNG report analyses the value of the sector and the drivers for floating liquefaction and offshore regasification. executive administrator for the Gas Processors Association (Europe). featuring the most prominent names in the global gas industry today. and we participate in all major events around Europe. Before long. the GPAE is participating in the Gas Processing stream. Throughout the show in stand A372. If you are unable to visit Gastech. including a hazard identification study. West Africa. Baltic & Barents Seas. high temperature metal seated ball valves. The scale of the event was brought home to all those visiting the exhibition by the sheer range of top organisations that were taking advantage of the opportunity to put themselves in front of an extremely knowledgeable audience. we are going to see a seismic shift in the use of LNG as fuel. has predicted rapid growth in new FLNG projects and the increased application of LNG as a marine fuel. where we will be presenting a total of eight papers for discussion. The Prelude project received environmental approval in late 2010 and has a target production start date of 2016. including: the Norwegian. Arctic Frontiers. ■ Association head eagerly anticipating CoTEs Sandy Dunlop. Most recently. ABS has helped us to make sure that safety and regulatory aspects have been appropriately addressed. “Just as in FLNG. HIPPS Service ball valves.” Infield at Gastech Infield Systems is exhibiting at Gastech in Booth A289.” Sember said. The Waller Marine concept allows LNG to be transported and delivered efficiently on a scale where large LNG infrastructure could be cumbersome. check (bolted bonnet or pressure seal designs) and butterfly valves. There will also be the opportunity to collect free copies of Infield Systems’ other published oil and gas activity maps. to new projects requiring project data. AMPO has reaffirmed its position as the ideal partner with one of the widest valve ranges of the market. “Ferries are already adapting and emissions regulations will mean that more vessels that can use LNG will do so. jacketed valves. and when we ran it last year in Amsterdam. “We are running one of the CoTEs on Tuesday.” said Sember. slurry ball and angle valves. and to make those really important connections.” The vessel will have the ability to load from existing tanks.” ABS has a long pedigree in LNG that includes classing the first LNG carriers built in China and the first Offshore Support Vessels to be powered by LNG as fuel. gas will compete with oil in terms of global demand and usage. ABS has granted approval in principle (AIP) to Waller Marine Inc’s concept design for a liquefied natural gas (LNG) carrier and regasification tug barge. who is chairing today’s technical session on Floating LNG. traditional LNG carriers. Gulf of Mexico and Asia Pacific. “My prediction for 2012 is that once these facilities have proven themselves. ABS worked with Houston-headquartered Waller Marine from the inception of the project and has been the premier certification body in reviews. The IEA predicts that global gas usage will rise by more than 50% from 2010 levels and account for more than one-quarter of global energy demand by 2035. then Infield Systems is also exhibiting at the Pilot Share Fair in Aberdeen. “We represent the Gastech Conference & Exhibition Newspaper gas processors of the industry.” Sember said. He predicted that the industry would see an FLNG vessel contracted by the end of the year. Infield Systems is announcing the timely publication of its latest report. “Supplies are enormous. globe. the company will exhibit a selection of products including a 10” 900# cryogenic top entry ball valve. “While FLNG is a relatively new development. Prelude. The potential for natural gas development presents us with a world of opportunity and the use of FLNG will be vital to help meet a portion of that demand. including: the complete range of oil and gas market sector forecast reports.

Among the products featured by the GE Oil & Gas Global Services unit is Micro LNG. and this represents great benefits for companies. “We are very happy to be here and will certainly be considering attending Gastech 2014 in Korea. as well as prospective new clients. we’re really trying to talk about the process side of what we do. we think that we can showcase a wide range of capabilities in LNG. as we are looking to further expand our consultancy services in a number of global regions. so we can share with them the technology. Lloyd’s Register Peter Richards. a fully integrated system that incorporates a high-speed electric motor drive and a centrifugal compressor in a single sealed casing.” said Steimle. and we are really keen to share our knowledge and expertise with the widest audience. too. an integrated plant that meets the small-scale LNG requirements of powering remote industrial and residential locations. “We are here. It’s going to be fun to walk around and see what different competitors are talking about. GE also announced it is providing gas compression trains for Cheniere Energy’s Sabine Pass liquefaction expansion project in Louisiana.” said Henk Schurink. GE Oil & Gas.CB&I brings over 50 years of LNG expertise to Gastech Adrienne Blume One of the world’s leading EPC firms. as well as very large savings. Steimle noted that CB&I’s presence at Gastech provides the perfect atmosphere for prospective partners to learn more about the company.” he said. “We’re here to network too. In between all of the coming and going. Louisiana. showing people what we can do and what benefits this can have for their companies. and over on the other side of Canvey Island in the UK. For us. where there is enormous potential. as well as all the different elements of vendors here. in terms of their capabilities and what they’re stressing. As BG Group is one of our clients. being held Oct. engineering and construction services. technologies and developments across the gas value chain. Logstor’s sales manager for LNG of pipes that have the insulation material in place. The facility will be the first FLNG operation for Petronas and the world’s second such plant. ■ Gastech Conference & Exhibition Newspaper Tuesday.” On the Logstor stand. It’s a big show. since 1958. an upgraded version of GE’s MS 5002 product line offering high efficiency. Bruce Steimle. Such is the recognition of Gastech’s importance to the global gas industry. which allows easier adoption of compressed natural gas refueling options. “We provide insulation for LNG pipes and are work- ing on a number of LNG terminals around the world. GE also is highlighting its capabilities in the LNG sector.” “In most cases. “Gas is a fuel of the future.” said GL Noble Denton’s director of marketing. peakshaving and storage. which is certainly one of the great benefits of Gastech. Senior Director of Global Marketing.” Steimle anticipates some familiar faces at this year’s Gastech. There’s a lot of people here. particularly exploration and production contractors. and in Norway. “CB&I has a full range of capabilities across the natural gas value chain. featuring plush green chairs. including floating LNG. was on hand at Gastech to enlighten exhibition visitors and potential customers on the services offered by CB&I. was generating good interest shortly after the exhibition floor opened to attendees at noon yesterday. We hope to see a lot of potential clients. The company recently announced it will supply its turbine-driven compressor train technology to Malaysia’s national oil and gas company Petronas for an FLNG facility that is being developed off the coast of Malaysia. “This year is an opportunity for us to connect with a lot of the clients that we’ve worked with over the years. along with Shell’s Prelude FLNG operation off Australia. computers for client use and free- standing photo panels of project sites. and what the challenges and opportunities are. “So. transoceanic shipment of LNG. it’s about helping people make better decisions. Charles. so he was looking forward to walking the exhibition floor. 9 October 2012  21 . so I think it’s going to be a very good show. “This is a big conference for this industry. as one of the industry leaders on the EPC side. the MS 5002E gas turbine. on a global basis. marine communications manager for Lloyd’s Register.” said Schurink. We see great benefits of being here.” Steimle said. visitors can see for themselves smaller scale cross-sections Henk Schurink. the unit produces no direct CO2 emissions and leaks no methane into the atmosphere. “Something else Gastech is really good for is bringing industry leaders all together. Nick Brown. the company’s sales manager for LNG.” ■ Peter Richards. all the way from gas processing through liquefaction. We’ve been involved in LNG since its inception. “I’m keen to see what some of the other exhibitors are doing. it has continued to attract the biggest names. regasification. uses oil-free active magnetic bearings and operates within a completely sealed case. is featuring several of its key products including CNG In A Box. This is Steimle’s first time attending Gastech. At Gastech. GL Noble Denton GE featuring broad scope of capabilities GE is highlighting its latest products and services for the global gas industry at Gastech 2012. as they talk about the future of gas. senior director of global marketing for CB&I. particularly in Australia.” CB&I’s exhibit. in St. Gastech brings together thousands of industry professionals for an exchange of ideas and to showcase the latest innovations. but we provide the insulation in advance of the pipes’ installation. “Gastech is absolutely one of the key events in the global gas industry calendar. “Being a part of these high-level debates and gaining a greater understanding of government policies for the future is of great value. The company offers a wide range of LNG technology. low emissions and a proven service life. operators and organisations. as well as the storage side. CB&I has more than 50 years of experience in the LNG market. and integrated com- pressor line (ICL) technology. Nick Brown.” ■ Bruce Steimle. is showcasing its technologies that include specialized insulation for LNG pipes. “This is a great opportunity for all those within the gas industry and a great opportunity for GL Noble Denton. clients and industry leaders under one roof. taking part in this event which brings thousands of experts. CB&I built the tanks for the very first intercontinental. the Show Daily was able to corral a few folks for comments. said the organisation was particularly pleased to be at Gastech. GE is supporting both FLNG projects.” Danish firm. CB&I Out and about on the show floor Yesterday afternoon. And then you’ve got the ownership side. traffic was brisk on the exhibition floor. insulation is added to pipelines after they are in place. a leading supplier of turbomachinery solutions for the oil and gas industry.” explained Steimle. while a large full-scale version of an insulated LNG pipe can be examined up close. so we expect to see a lot of the folks that we know and have worked with over the years. it was also very valuable to hear from Sir Frank Chapman. “So. 8-11 in London. Logstor. This project will transform the existing Sabine Pass import terminal into the first LNG export facility constructed in North America to take advantage of recent shale gas discoveries. and we certainly plan to attend Gastech 2014 in Korea. Because it lacks a combustion engine.

reaffirming that you are indeed at Gastech. Apache Corp. have been welcoming speakers to the Speakers Lounge. along with a colleague.Scenes from Gastech During Sir Frank Chapman’s speech. Delegates confer on Monday morning. Edward Davey. 9 October 2012 ExCel London was finishing up preparations for the exhibition Monday morning. this sign can help you get your bearings. This crowd was attentive during the speech by Rt.. The Speakers Lounge is on the third floor of the conference area. . 22  Tuesday. If you haven’t figured it out already. The delegate lunch was a luxurious and relaxing affair. Gastech Conference & Exhibition Newspaper Janine McArdle. Secretary of State for Energy & Climate Change. the crowd was dialed in. Turnout was strong for the VIP breakfast. was a featured panelist Monday afternoon. Gastech Event Producer Kate Cheetham (on the right). A crowd shot from the Monday morning session. Hon. The crowd was excited before the official ribbon cutting ceremony.

Established UK-Norwegian energy links make gas a reliable and efficient source of energy.The United Kingdom. There’s never been a better time for good Gas from the Norwegian Continental Shelf can supply millions of Britons with . Powered by Norwegian gas. Be enlightened at goodideas.