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Oil&Gas Technology Update

LNG focus

Jakarta, October 26 2016


Disclaimer

This document is strictly confidential. Any unauthorised access to, appropriation of,
copying, modification, use or disclosure thereof, in whole or in part, by any means, for
any purpose, infringes GTT’s rights. This document is part of GTT’s proprietary know-
how and may contain trade secrets protected worldwide by TRIPS and EU Directives
against their unlawful acquisition, use and disclosure. It is also protected by Copyright

SKK Migas Technology Update


law. The production, offering or placing on the market of, the importation, export or
storage of goods or services using GTT’s trade secrets or know-how is subject to GTT’s
prior written consent. Any violation of these obligations may give rise to civil or criminal
liability. © GTT, 2010-2016

CONFIDENTIEL 26/10/2016
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GTT in brief
An engineering company with more than 50
years of experience in the design of the
Membrane Cargo Containment Systems

GTT is a public company listed on the


Euronext Stock Exchange (Paris)

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10.38%

Free-float
48.70% 40.41%

Treasury shares
0.09%
Management and employees
0.43%

CONFIDENTIEL 26/10/2016
111 projects (1) (LNGC, VLEC, FSRU, FLNG,
barge and GST) currently on order

Around 380 highly qualified people (1), present


worldwide
(1) As at March 31st, 2016

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GTT is active across the liquefied gas shipping
and storage value chain

Exploration Re- Off Take /


Liquefaction Shipping
& Production Gasification Consumption

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Liquefied Natural Gas LNG fuelled
Offshore Carrier ship
clients: (LNGC)
shipyards Platform /
Installation Floating LNG Floating Storage and Gas-to-wire
Production, Storage Regasification Unit
and Offloading unit (FSRU)
(FLNG)
Barge
Ethane/ multigas
Carriers

CONFIDENTIEL 26/10/2016
Onshore
clients:
EPC
Onshore storage re- Tank in Power plant
contractors Onshore storage
gasification terminal industrial plant
liquefaction plant

Source: Company data


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evolutions
Containment system

CONFIDENTIEL 26/10/2016 SKK Migas Technology Update


Changes in propulsion systems

Initially, all LNG Carriers built with Steam Turbine:


Reliable, but
Low efficiency
Optimized for one dedicated speed

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Since 2005/2006, DF-DE engines as a basis of design
Improved global efficiency
Improved redundancy (4 DFDE + 2 Electric motors)
Flexibility according to power demand
More cargo delivered

MarkIII Loa (m) Lbp (m) B (m) D (m) T (m)

CONFIDENTIEL 26/10/2016
147k ST 285.1 272 43.4 26.1 12.1
155k DF-DE 285.1 274 43.4 26.1 12.1

Recently, Slow Speed engines with gas burning options ME-GI (MAN) and X-
DF (Wartsila)
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Ship efficiency vs BOR

Ship efficiency is driving BOR of cargo tanks


Propulsion requirements
Hotel load
Hull lines

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More efficient propulsion system on the market:
ST
UST / RST
DF-DE (in operation since 2006) Increase in
SSD + reliquefaction plant (in operation since 2007) efficiency
ME-GI, X-DF (vessels under construction)

CONFIDENTIEL 26/10/2016
Design speed at 19.5 kn

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Generalities on containment systems for LNG
vessels
IMO Classification of LNG Vessels

Independent tanks Integrated tanks

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Type A Type B Type C Membranes
P0≤700mbar P0≤700mbar P0≥2000mbar P0≤700mbar
Full 2ary barrier Partial 2ary barrier No 2ary barrier Full 2ary barrier

Spherical Cylinders GTT NO96

CONFIDENTIEL 26/10/2016
Prismatic GTT MarkIII

GTT CS1

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CCS Evolution

Demand for lower BOR


Increased propulsion efficiency (DF DE, MEGI)

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Reduced speed (Spot market)
Environmental concerns (Nox / Sox emissions)

Need for increased strength related to


Increased cargo capacity
Additional flexibility for intermediate fillings

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Offshore application

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Membrane cargo containment systems

MarkIII NO96

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MarkIII NO96

Insulation thickness 270 mm 530 mm

Dimensions of standard
3m x 1m 1.2m x 1m
elements
Containment weight 73 kg/m² 114 kg/m²

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Insulation material Reinforced PU foam Plywood and perlite

Primary membrane 1.2mm corrugated SUS 304L 0.7mm Invar

Secondary membrane 0.6mm Triplex 0.7mm Invar

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NO96 CCS: Description

Boxes made of birch plywood


Perlite as insulation material
Primary and secondary membranes made of Invar
(36% Nickel-Steel alloy)

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Primary
membrane

Primary box

Invar tongue
Secondary
membrane

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Coupler
Secondary box

Mastic ropes

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NO96 Evolution: Glass wool

BOR Reduction: replacing perlite with glass wool

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BOR down to

0.125%pd

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NO96 Evolution: L03 / L03+

BOR Reduction: R-PUF adjunction at secondary layer

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170K LNGC:
- L03: BOR ~ 0.110%pd
- L03+: BOR ~ 0.100%pd

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NO96 Max: General description
Based on NO96 philosophy & sea proven materials
Invar
Densified plywood
Glass wool Primary invar membrane
Resin Top cover

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Secondary invar membrane

Stiffener

CONFIDENTIEL 26/10/2016
NO96 Max coupler
Pillar Bottom

Resin patch

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MarkIII CCS: Description

Insulating panel made of re-inforced PU foam


Corrugated primary membrane made of SUS304L
Secondary membrane made of Triplex (aluminum foil between two glass
cloths)

Knot (large and small

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Small corrugation intersection)
corrugation

Anchoring strip
Large
corrugation
Top
plywood
Top bridge pad

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Triplex

Reinforced
Back plywood polyurethane foam
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MarkIII Evolution: Mark III Flex

Strength increase: change of R-PUF density

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Higher Compressive

strength
130kg/m3 210kg/m3

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MarkIII Evolution: Mark III Flex

BOR reduction: increased thickness

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400mm
BOR less than
270mm

0.100%pd

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Mark III Mark Flex

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MarkV: General description
Corrugated 304L primary
Corrugated Fe-36%Ni
secondary membrane membrane identical to Mark III

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Mechanical anchoring
Machined R-PUF panels

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Summary of CCS evolutions - BOR

Performance of GTT technologies Value of reducing BOR(1) to a shipowner


LNG Boil Off Rate (BOR)(1) of GTT systems developed since 2010 10 year NPV of reduced BOR(1) for an LNGC(2)

12 M$ 11.4 M$
10.6 M$
-6 bp 10 M$ 9.1 M$
-8 bp

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8 M$

6 M$ 5.6 M$

4 M$

2 M$

0 M$
-2 bp -4 bp -6 bp -8 bp
1992 2011 2013/16 1994 2011/12 2016

CONFIDENTIEL 26/10/2016
Reduction of BOR(1) represents significant savings for the shipowner, up to $11.4M in a 10-year period
New LNGC vs old: $74 M savings (3)

Source: Company
(1) Boil off rate per day
(2) Assuming 174,000m3 vessel equipped with NO96 membrane; using 6% discount rate; $7.15/Mbtu Asian gas price assumption. NPV calculated vs. a BOR of 0.15%
(3) Hyp.: 10-year period, discount rate: 6%, LNG selling price in Asia: $7.15/Mbtu, propulsion: steam turbine for old one and MEGI for new one

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Summary of CCS evolutions - Strength
GTT systems – always a suitable level of reinforcements
NO96 Max “Giga box” strength will be equivalent to Mark “High Density”

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Mark Systems
130kg/m3 170kg/m3 210kg/m3

Std / SR / UR Mega Reinf Giga Reinf


NO96 MAX

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More flexibility with higher strength

Illustration of the added value in terms of operational flexibility


LNGC revised filling limits – North Atlantic – Standard capacity 174k

NO96 Max Mark


Giga 210 kg/m3

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NO96 Max Mark
Ultra 130 kg/m3
50%H 50%H

70%H 70%H

15%H 15%H

CONFIDENTIEL 26/10/2016
Reinf. on 1/3 of the total surface
Subjected to sloshing assessment 10%H 10%H

The “all capacity” approach allows to optimize the configuration

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FSRU

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CONFIDENTIEL 26/10/2016 SKK Migas Technology Update


Many configurations already considered
PGN FSRU Lampung
170k FSRU
Offshore operations – Soft Yoke mooring
Side-by-side STS
Subsea gas pipeline to shore

SKK Migas Technology Update


Bahia Blanca LNG
138k FSRU
Jetty moored
Side-by-side STS
Direct connection to shore

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Pecem Regas terminal
129k FSRU (conversion)
Jetty moored
STS accross the jetty
Direct connection to shore

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Many configurations already considered

Uruguay LNG
263k FSRU (Newbuilt)

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Offshore island jetty with breakwater
STS accross the jetty
Subsea gas pipeline to shore
Lekas Regas terminal
2*130k FSU (conversion)
Offshore island jetty with regas plant
STS accross the jetty
Subsea gas pipeline to shore

CONFIDENTIEL 26/10/2016
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Solutions for sloshing

Two principles to solve sloshing issues

To increase the strength of the containment system to such a level that they
can withstand the sloshing loads

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AND/OR

To reduce the loads to such a level that they are acceptable with regards to
the strength of the containment system

By changing the ship motions

CONFIDENTIEL 26/10/2016
adding dynamic positioning system (turret mooring), to reduce exposition in beam seas,
working on the ship behaviour (by increasing the natural period in roll, and the corresponding added
damping (enlarged bilge keels, etc))

By changing the shape of the tank

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Generalities

Sloshing is a function of:

Sea state Environmental


conditions

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Ship geometry
Ship sea keeping characteristics
Tank geometrical characteristics Ship Design
Tank position

Ship loading characteristics


Filling level Operational Profile

CONFIDENTIEL 26/10/2016
Ship / waves incidence

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Impact pressure evaluation
Video: Sirocco.wmv

3 test rigs
6 degrees of freedom
1, 2.4 and 6 tons pay load
(current tank scaling: 1/40)

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Arrays of pressure sensors with statistical post
processing (up to 250 sensors, 20 kHz sampling rate)

Typically 500 to 1000 runs of 5 hours real time

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Tank reinforcement for typical large FSRU (MkIII)
For illustration only

LNGC case

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FLNG

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CONFIDENTIEL 26/10/2016 SKK Migas Technology Update


FLNG orders

Shell Prelude FLNG


EPCIC awarded to Technip-SHI
Storage tanks:
Two-row MkIII (220,000 m3 LNG)
Two-row MkIII (90,000 m3 LPG)

LNG Unlimited, 14/10/2011

SKK Migas Technology Update


Petronas FLNG 1 (Kanowit)
EPCIC awarded to Technip-DSME
Storage tanks:
Two-row NO96 (177,000 m3 LNG)

Petronas FLNG 2 (Rotan)


EPCIC awarded to JGC-SHI

CONFIDENTIEL 26/10/2016
Storage tanks:
Two-row MarkIII (177,000 m3 LNG)

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Operationnal challenges

Sloshing (partial filling) of


FLNG (continuous)
Shuttle LNGC (transfer)

Ship to Ship transfer operations

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Operations: Maintenance &
Inspection Partial filling for Hmax>30m

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FLNG versus LNGC
LNGCs FLNGs

-Tanks limitations to filling - Liquid levels always


<10%H or >70%H to limit changing, continuous
sloshing loads and optimize production
BOR performance

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Design
-Loading/Unloading -Offloading in offshore
operations at Onshore environment
Terminal (protected
conditions)

-Dry dock every 5 years -No dry dock during FLNG life
(up to 25 to 30 years)

CONFIDENTIEL 26/10/2016
-All Tanks entry every 5 years -Minimize tank entry (impact
Maintenance
on production): 10 years
minimum without entry (risk
approach)

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Two-row arrangement

Central cofferdam compartment adjunction

Additional strength for topside modules support

Reduced sloshing phenomena

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Several geometries, capacities and locations studied
Various O&G majors, ship-owners, shipyards
and major Classification Societies involved
Full operability on site even in harsh environments (AiPs)

Video: Coupled 1R 2R.wmv

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Two-row arrangement

Sloshing intensity Video: 95%H.wmv

Acceptable impacts on
the ceiling and chamfers
Video: 60%H.wmv

No impacts even for harsh

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conditions

Acceptable impacts on
the longitudinal walls
and chamfers

Video: 15%H.wmv
Sloshing
response

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Transv. Longi. Transv. Longi. Transv. Longi.
effects effects effects effects effects effects

Head sea Quartering sea Beam sea


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Inspection: Checking visit

Standard maintenance phase:


testing of the tightness of the membranes
visual inspection of pump tower, of containment system
maintenance of cargo pumps (in case of fixed pumps)

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So far, applicable rules on conventional LNG carriers only require that:
the secondary barrier should be able to be tested. Currently, control every five years in
accordance with Class and the Administration (flag state)
no requirement for testing the primary barrier (considered as under permanent monitoring
by the gas detection system)

CONFIDENTIEL 26/10/2016
Tank entries
GTT recommendation: between 3 and 5 years, 10 years, 20 years…
Class requirement (so far): every 5 years

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On-site maintenance and inspection

Control of primary and secondary barriers performed


while the tank is in operation
Continuous gas concentration measurement system
Thermographic Assessment of Membrane Integrity
(secondary barrier)

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Inner hull control:
Cargo hold side: not exposed to external aggressions (light,
oxygen and humidity)
Outside face of inner hull (ballast tanks, cofferdam
bulkheads...): possible even if tank filled with LNG

Existing standard LNGC inspection and repair

CONFIDENTIEL 26/10/2016
procedures applicable for on-site intervention
On-site repairs of membranes and insulation
On-site repairs on the hull (welding) with the containment
system in place
Design of offshore scaffolding completed if necessary

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Ship concepts
Small scale LNG

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CONFIDENTIEL 26/10/2016 SKK Migas Technology Update


Key features

Better economics
by maximizing scale effects

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Flexibility in operations
by allowing any LNG quantity to be
delivered to multiple clients

Shallow water constraints


by proposing innovative low draft solutions

CONFIDENTIEL 26/10/2016
Safety and reliability requirements
by relying on proven systems

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Small Scale LNG

Eastern part of Indonesia


Projects for power generation
Very small demand in many islands
Remote locations

SKK Migas Technology Update


Constraints
Compatibility with loading / unloading terminals
Dedicated pier for small LNG ?
Existing jetty:
• Maximum ship length
• Fenders : minimum flat part for the side shell
• Manifold arrangements

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Water Depth / shallow draft issues
Tug assistance
Distance between terminals
Operating pressure (BOG management)

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Shallow Draft LNG Carrier

Modularity of membrane systems for


flexible and optimized solutions

Tank shape customized to fit a particular hull

SKK Migas Technology Update


A design of a small scale LNG Carrier with a
shallow draft is then possible, with a large
cargo capacity

15,000m3 LNGC « standard » design


A shallow draft carrier is fit for regional

CONFIDENTIEL 26/10/2016
Draft = 6.5m
distribution:
Easy access to many harbours
Coastal and river access
Large LNG volume 16,500m3 LNGC shallow draft design
Draft = 4.8m

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Shallow Draft LNG Carrier – 16,500 m3

HULL: CARGO TANKS: PROPULSION:


– Lbp = 126m – Capacity =16,500m3 – DF-DE

SKK Migas Technology Update


– B = 28m – Number of tanks = 2 – Speed = 12.5kts
– D = 11.7m – BOR (LNG) = 0.200%V.p.d. – Twin-screw / Fixed pitch
– Tdes = 4.8m

Manoeuvring :
Twin propeller solution with high-lift rudders
Forward thruster with high thrust for independent manoeuvring
“Crabbing” possible if reduced tug support

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Forward wheelhouse for better visibility

Partial fillings possible

Design Approved by ABS and CCS


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Shallow Draft LNG Carrier – 6,000 m3

HULL: CARGO TANKS: PROPULSION:


– Lbp = 92.55m – Capacity =6,200m3 – DF-DE

SKK Migas Technology Update


– B = 20.7m – Number of tanks = 2 – Speed = 11kts
– D = 12.20m – BOR (LNG) = 0.250%V.p.d. – Twin-screw / Fixed pitch
– Tdes = 3.7m

Manoeuvring :
Twin propeller solution with high-lift rudders
Forward thruster with high thrust for independent manoeuvring

Forward wheelhouse for better visibility

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Partial fillings possible

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Design parameters - Sloshing

Indonesian waters navigation conditions


China sea navigation condition
Partial fillings : between 10%H and 70%H

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CONFIDENTIEL 26/10/2016
Small scale membrane vessels can be operated
at all filing levels in South East Asia
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Design parameters - Sloshing
Any volume of cargo can be transported with membrane small scale ships
Adequate cargo tank reinforcement
Suitable for milk run operations

Filling level [%H]


100

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90

80
70H
70

60

50

40

30

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20

10
10H
0
130kg/m3 210 kg/m3
Mark 130kg/m3 Mark 210kg/m3
NO96 Max Ultra NO96 Max Giga

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FSU with barge design
Regasification
Power supply from shore

To local
consumer

SKK Migas Technology Update


To end user

Truck loading

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Simple FSU design

FSU solution for simple design


Onshore regas
Onshore control room with local back-up
Power supply from shore
Solution compatible for regas and/or truck loading projects

SKK Migas Technology Update


A cost effective solution:
Simple, box-shaped barge without propulsion
Cargo tank designs similar to the 16.5k shallow draft LNGC

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Key features
Designed for sheltered waters (Hs = 2m)
Permanently jetty moored
Extended interval between tank surveys

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Tug and Barge: combining shipping and storage

Principle “Drop and Swap”:


Barge loaded at the conventional LNG plants
Loaded unit shipped in with a tug and moored
The barge provides storage
As the barge is emptied, another full one

SKK Migas Technology Update


could be shipped in

Remarks:
Very shallow draft
But limited sea-keeping ability and speed
No need for onshore tank, but two barges
Less cargo transfer operations (only at loading terminal)

CONFIDENTIEL 26/10/2016
Crew of a tug boat, not the one of an LNG carrier

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2,200 m3 LNG barge
Main parameters:
LOA : 64.6 m
B: 14.8 m
Draft: 2.6 m
Tonnage: 1,440 GT
Speed: up to 8 knots

Cargo:

SKK Migas Technology Update


2.200 m3 (100%)
2.066 m3 deliverable volume
4.5 hour full transfer time

Single Cargo Tank: GTT Mark III Flex CCS

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Equiped with GTT REACH4 LNG transfer arm
AIP Received from ABS and DNV-GL

Late February 2015, GTT received an order from Conrad Orange Shipyard for
this 2,200 m3 LNG barge for the US market

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Barge under construction

SKK Migas Technology Update


CONFIDENTIEL 26/10/2016
Pictures : courtesy of CONRAD SHIPYARD
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Land based solutions

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CONFIDENTIEL 26/10/2016 SKK Migas Technology Update


Land storage tanks

Generalities on atmospheric storage tank technologies

Single containment Double containment 9%Ni Full containment Membrane containment

SKK Migas Technology Update


− Largest footprint − Mostly used nowadays − Most compact design
− Most economic design
− In case of failure, LNG is − In case of failure, LNG is contained − In case of failure, both LNG and − In case of failure, both LNG and
contained by a dike by a bund wall NG are contained by the concrete NG are contained by the
walls (safest design) concrete walls (safest design)

CONFIDENTIEL 26/10/2016
Membrane tanks and 9%Ni tanks provides the highest level of safety (full
integrity in case of LNG spill)

But only membrane tanks offer the largest variety of configurations (above
ground, in-ground, semi-buried, cryogenic caverns...)

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GST ®: An innovative design

SKK Migas Technology Update


CONFIDENTIEL 26/10/2016
Secondary barrier (TPS) Polygonal inner face

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Full Integrity Containment System

In 1996, a comparative QRA has been carried out (Membrane Vs 9%Ni FCT)

In 2006, The European Norms (EN 1473 & EN 14-620) address the Membrane Tank
and 9%Ni FC Tank with the same safety level

SKK Migas Technology Update


No dike needed

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Membrane principle: separation of the main functions

Tightness function :
• Stainless steel membrane

SKK Migas Technology Update


Structural function : • Carbon steel liner
Concrete outer tank • Secondary barrier

Thermal function :
• Insulating panels

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• Glass wool on suspended deck

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GST ®: Containment Detailed Description

Standard components
Industrially pre-fabricated by suppliers

Stainless steel corrugated membrane


304 L – 1.2 mm Primary Barrier

SKK Migas Technology Update


Plywood

Composite material
Secondary Barrier

Reinforced polyurethane foam

CONFIDENTIEL 26/10/2016
Plywood

Mastic

Concrete wall covered with a


moisture barrier
Insulation in TPS(1) area Insulation above 5m height
(1) Thermal Protection System
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GST ®: A Greater Net Volume

SKK Migas Technology Update


≈3m ≈1.5m

≈1m ≈0.35m

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≈0.6m ≈0.35m

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GST ®: Earthquake behavior

SKK Migas Technology Update


CONFIDENTIEL 26/10/2016
To limit the uplift of inner tank base, slab anchors has •No additional anchors
to be provided for high PGA’s •PUF density designed for dynamic pressure

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GST ®: Larger use of local workforce

High ratio of prefabrication and the standardized modules

SKK Migas Technology Update


Highly skilled welders for Trained operators for use of
9% welding at high material automatic welding
thicknesses (training by GTT)

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Good skilled insulation workers for placing of Cellular Local erection workers for placing of
Glass and filling of perlite insulation elements.

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GST Flex - Concept

Objective
Propose a LNG tank made of precast
concrete easy to assemble on site
(capacity : 2 000 - 15 000 m3)
The precast concrete elements are
prefabricated in factory, shipped to

SKK Migas Technology Update


site and connected on site

Advantages
Modularity and flexibility of the design
Construction period is reduced with a

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short time of presence on site
Excellent solution for remote areas
and mid size storage requirement

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Gravity Based Structure

Target capacity : from 2k to 30k

Steel or concrete caisson


Mooring and berthing
LNG Storage

SKK Migas Technology Update


Process

Adapted for each situation


In quayside with transfer arms
Near shore onto sea floor

Features:

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Strong resistance to external hazards
Construction in dry-docks or floating dock
Structure, containment system and
process completed in construction site
Transportation by towing
No building impact in ports activities
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Ship-To-Ship Transfer

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Ship-to-Ship methodology

Reception from the ship-owner/operator of the elements


determining the operating envelope for the STS studies:
Operating envelope to be calculated based on
the following limiting factors:
Operating envelope of loading arms,
Maximum compression in the fenders,

SKK Migas Technology Update


Maximum tension in the mooring lines,
Roll angle between both FLNG and LNGC (collision)…

Above the operating envelope, disconnection of the shuttle


LNGC should occur

For the operating envelope received, verification that


sloshing in the shuttle LNGC does not bring limitations to

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the STS operations

GTT has the expertise, tools and test equipment to


conclude on sloshing items in GTT membrane ships

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Procedure for liquid motion analysis

Computation of the ship motions of the shuttle LNGC


interaction between the LNGC and the FLNG (coupled model)
Turret, mooring lines between the two vessels, fenders
environmental conditions on the considered site
(scatter diagram, wave type...)

SKK Migas Technology Update


Sloshing tests on the hexapod test rig to measure the pressures on the tank
walls, for the partial filling range
all wave headings (head sea, quartering sea, beam sea),
all wave heights / periods

Post-processing of the pressures to define the


sloshing loads and compare with CCS strength

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Conclusion on the type of reinforcements of the CCS
Existing vessels : maximun environmental conditions
Newbuild vessels: required level of CCS reinforcements

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GTT response: Conclusion of STS Studies

The results are summarized in a


« operating envelope » linked to sloshing
L
F
N
L G
Wave
Based on the level of reinforcement selected N C
height
G

SKK Migas Technology Update


and the associated sloshing results, comparison
of the « operating envelope » linked to STS
and the « operating envelope » linked to sloshing

Conclusion on the final operating envelope

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Side by Side and Tandem

Side by Side
Studies have demonstrated feasibility of side by side
operations for several offshore areas on Existing Membrane
Fleet

Tandem

SKK Migas Technology Update


Natural option in offshore environment, used for oil FPSOs
Dedicated New build required for tandem operation
Bow manifold
Optimized sea keeping features for ship motions reduction
Sloshing
GTT Reinforced Membrane CCS offers all the flexibility
required by tandem operations under significant sea
conditions

CONFIDENTIEL 26/10/2016
Feasibility demonstrated up to 5m Hs
Positive Return of Experience on Regas vessels

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SKK Migas Technology Update
Thank you for your attention
Stéphane Maillard • smaillard@gtt.fr

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