HOW TO PREPARE

PLANNING DELIVERABLES
FOR LNG PROJECT?

SAPTO HARI WIBOWO

Doha, 27-May-2020
AGENDA :
1. General LNG Project Scopes & Project Management
2. Stage Gate Approval
3. Feasibility Study & Concept Selection (Technology Decision)
4. Early Work, Pipelines, Main LNG Project scopes
5. Define Phase (FEED)
6. Project Execution (EPC Scopes)
7. Hand Over to Operation
8. Q&A
General LNG Project Scopes & Project Management
Liquefied natural gas (LNG) is natural gas
(predominantly methane, CH4, with some
mixture of ethane, C2H6) that has been cooled
down to liquid form for ease and safety of non-
pressurized storage or transport.
(Wikipedia)

A typical LNG process

General LNG Project Scopes & Project Management
• Project Management
Project management is of vital importance to LNG infrastructure projects
because of the complex technology, large investments involved, and
remote locations of liquefaction plants.
There are also needs to source equipment and materials from different
countries and coordinate with the supply chain components (e.g., feed gas
pipeline, gas liquefaction plant, and marine export terminal). In addition
LNG projects are typically developed by multiple contractors and
subcontractors and are reliant on suppliers and service companies located
around the world, requiring large multicultural labor teams and financial
institutions providing large tranches of project finance.
Even with strong project management teams and well-defined project
management strategies it is difficult to deliver these projects on time and
on budget.
Stage Gate Deliverables
• Stage/ decision gate process is is a Project Management technique in
which an initiative or project is divided into distinct stages or phases,
separated by decision points (known as gates).
• At each gate, continuation is decided by (typically) a manager,
steering committee or governance board. The decision is made on
forecasts and information available at the time, including the business
case, risk analysis and availability of necessary resources (e.g.,
money, people with correct competencies).
Stage Gate Approval
Comparison of Gated Process of large E&P players for Project Delivery
Stage Gate Approval
Stage Gate Project Evaluation
Below is a list of the most-commonly found criteria used to evaluate projects. Of course the capacity of
the company to execute the project from a financial and resource point of view can be included as
well.
•Strategic •Synergies
Degree to which a project aligns with the BU’s Marketing synergies
strategy Technological synergies
Project’s strategic importance Manufacturing/processing synergies
•Product advantage •Technical feasibility
Unique benefits Technical GAP
Meets customer needs better Complexity
Value for money Technical uncertainty
•Market attractiveness •Risk versus return
Market size Expected profitability (NPV)
Market growth Internal Rate of Return (IRR)
Competitive situation Payback period
Certainty of return/profit estimates
Low cost & fast to do
Feasibility Study & Concept Selection (Technology Decision)
• Before FEED or Define stage, the most important is Concept Selection stage it
contain Concept Identification and Concept Selection
• Concept Identification
To ensure that all alternative approaches are identified, ideas should be solicited
both internally and externally. This process gives internal operator groups the
opportunity to include ideas with input from additional geographical regions, as
well as the opportunity to learn from experience gained by their peers with other
technologies
• Concept Selection
The selection process begins with a series of efforts to reduce the number of
concepts. Generally, the amount of effort per alternative concept increases as the
number of alternatives is reduced. It is important to obtain regular stakeholder
review of the inputs to the Decision Analysis model during the process.
This step will avoid many of the arguments that may occur when the results are
presented, because inputs and the method of modeling are understood and
agreed upon up front
Early Work, Pipelines, Main LNG Project scopes
• Early Works (Civil & Infrastucture)
1. Tree Cutting (if necessary) and ground levelling
2. BOF (Bulk Off Loading Facilities) & Dredging
3. Access & Haulage Roads
4. Camps (if necessary) or transport facilities for site manpower
• Pipelines
1. Excavation works
2. Pipelines including flowlines works
3. Station (if required)
Early Work, Pipelines, Main LNG Project scopes
• Main LNG Scopes
1. Drilling works (onshore or offshore)
2. Piling works
3. LNG Tanks
4. Foundation and grounding
5. Piperacks
6. Underground cabling & trenching
6. Stick built / modular works (shipment schedule required)
7. Jetty & Dredging works
8. Interface works
9. Precomm/ Commissioning
10. Etc
Define Phase (FEED)
• The result of FEED is EPIC Package scope and EPIC Schedule/ planning package
• Based on FEED Contractor develop EPIC Schedule, the client’s Planners (Operator Company) shall
develop Level 1 or level 2 schedule and develop SRA model based on deterministic schedule
• The Planner and Risk Engineer together conducting schedule risk workshop with competent
personnel from all disciplines to get input all risk event and duration impacting to the project,
some other company preferring for interview with team leader or competent personnel
• The final result from risk workshop/ interview are P10, P50 and P80/90 also for Cost Estimate
• SRA and CRA final result submit to Technical Authority (TA) for ESAR (Estimate & Schedule
Assurance Review), presentation and all data/ document required during this ESAR
• After ESAR approved then submit to High Level Management (Steering Committee for EPC tender
Approval for Schedule, Cost Estimate & Probabilistic)
• EPC Tender Process, during this period Client Planner must review Bidder planning package with
carefully priority on strategy/ sequences and total duration also critical path, the main equipment
delivery (MCHE, MAC, Turbine, Compressors etc) and manpower histogram
Define Phase (FEED)
Example level 1 schedule for LNG Project
Define Phase (FEED)
Example resources histogram at site for LNG Project
Define Phase (FEED)
Example for schedule risk analysis for LNG Project

The technical case and the venture are two scenarios run to understand
the impact of different sensitivities on the premises.
Further information can be found in the Schedule Risk report
Project Execution (EPC Scopes)
• FID Started with decision contract award to EPC Contractor
• Normally within 60 days to 90 days EPC Contractor must submit planning package for
review and approval to Client
• After planning package review and approved by Client’s planner team leader, Contractor
starting using this document for monitoring and contractual document as baseline
• Client’s planner must prepare high level schedule for management reporting and also in
schedule risk analysis for post mitigate update
• During this period project monitor closely by both parties (Client and Contractors)
• After Fabrication reaching 60% and Engineering almost complete (above 90% progress),
Contractor must able to develop and submit detail schedule for precomm and
Commissioning by systems and sub systems
• Focus on putting priority for systems and sub systems and also potentially for change
sequence based on availability of equipment to arrive and installed at site
• All MCC (Mechanical Completion Certificate) must inplace before precomm/
commissioning started (monitor closely by MCC coordinator and planners), normally
using skylines chart for monitoring
Hand Over to Operation
• During Precomm/ Commissioning, must witnessed and approved by
Client Project Team and Client Operation Team
• Hand Over to operation by partially system and also Final Handover
with all systems running in good operation condition as requirement
Q&A