Hunt LNG Operating Company S.A.C.

Definition and Calculation of

Production KPI’s

Document Number: POP-000-PRO-0001

Document Owner: Production Operations

Revised to change name of unplanned

03 01.Jul.2015
shutdown
02 Revised to change Utilization definition A.C. G.C. E.M A.D. 15.Oct.2014

01 Revised to include comments A.C. G.C. E.M. P.O. 21.Apr.2014

00 Issued for use R.M. N/A E.M. A.S. 06.Jul.2011

QHSE
Author Reviewer Approver
Reviewer
Rev Revision Description Approval Date
Health & Safety
Prod. Sch. Proc.Eng. Prod. Mgr.
Manager
Approval – Hunt LNG Operating Company S.A.C.,
Revisions
the operator of PERU LNG S.R.L.
 Definition and Calculation of Production
KPI’s

Revision Notes
MOC
Revision Revision date Modification Reason
number
Indicate: Number If applicable, Indicate the paragraph number where the change
Indicate the date Describe the reason
of the document indicate the MOC took place and the new paragraph number in case
of the change for the changes
revision number something new is added.

01 21.Apr.2014 N/A Section 3.2 Glossary added.

Section 5.1 Clarification.

Section 5.4 Improved

section.

Section 5.5 Clarification.

Section 5.7 Deleted section

Annual Plant
Capacity
Utilization due to
previous
calculation.

Section 5.9 Improved

section.

Appendix C Deleted section

Design LNG
Rundown due to
unnecessary
information.

02 15.Oct.2014 Section 4.5 Definition and

calculation
method
changed.

Section 4.6 Included section

Nameplate Plant
Capacity
Utilization

Appendix D Included section

Design LNG
Rundown

03 01-Jul-15 Section 3.2 Update name to

Unpplaned
Controlled
Shutdown

Section 4.1 Delete

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 Definition and Calculation of Production
KPI’s

sentence.

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 Definition and Calculation of Production KPI’s

Table of Contents
Revision Notes.....................................................................................................................................................2
1.0 Purpose...................................................................................................................................................4
2.0 Scope.......................................................................................................................................................4
3.0 Responsibilities and Glossary...............................................................................................................4
3.1 Responsibilities......................................................................................................................4
3.2 Glossary..................................................................................................................................4
4.0 Key Performance Indicators.................................................................................................................5
4.1 Overall Efficiency...................................................................................................................5
4.1.1 Calculation method..........................................................................................................5
4.2 Liquefaction Efficiency..........................................................................................................6
4.2.1 Calculation method..........................................................................................................6
4.3 Availability..............................................................................................................................7
4.3.1 Calculation Method..........................................................................................................7
4.4 Reliability................................................................................................................................7
4.4.1 Calculation method..........................................................................................................7
4.5 Utilization................................................................................................................................8
4.5.1 Calculation method..........................................................................................................8
4.6 Nameplate Plant Capacity Utilization (NPC Utilization)......................................................9
4.7 Feed Gas Usage.....................................................................................................................9
4.7.1 Calculation method........................................................................................................10
4.8 Flaring...................................................................................................................................10
4.8.1 Calculation method........................................................................................................10
4.9 Refrigerant Usage................................................................................................................11
4.9.1 Calculation method........................................................................................................11
4.10 Consumables Usage........................................................................................................11
4.10.1 Calculation method....................................................................................................11
5.0 QHSE Considerations (If applicable).................................................................................................11
6.0 References.............................................................................................................................................11
APPENDIX A: LNG Net Energy & Feed Gas Energy..................................................................................12
APPENDIX B: LNG Rundown Energy..........................................................................................................13
APPENDIX C: Volume of Refrigerant consumed.........................................................................................14
APPENDIX D: Design LNG Rundown...........................................................................................................16

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 Definition and Calculation of Production KPI’s

1.0 Purpose
The purpose of this document is to define and to provide the calculation method of the Key
Performance Indicators that will be measured to monitor and assess Peru LNG plant’s production.

2.0 Scope
The procedure covers the main overall key performance indicators that will be used to monitor the
plant’s performance. Key performance indicators of individual equipment and units are not part of
the scope of this procedure.

3.0 Responsibilities and Glossary

3.1 Responsibilities
The following describes responsibilities in the Procedure:

Production Scheduler Performs calculation and records KPI’s on a daily

basis. Prepares daily, weekly, monthly and annual
reports as requested.
Process Engineer Provides support to Production in evaluating the
indicators and proposes means to optimize and
improve the results.

3.2 Glossary
The following describes terms used in the Procedure.

KPI Key Performance Indicator

LNG Net LNG production measured as difference in level in the
LNG tanks
LNG Rundown LNG production measured at the outlet of the MCHE
Downtime Period of time in which the LNG rundown production is
zero
Nameplate Capacity 4.45 MTPA
Total time Time period to report
HHV High Heating Value
Ton Metric Ton = 1,000 Kg.

The following chart shows the terms that are used in the definitions of the KPI’s.

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 Definition and Calculation of Production KPI’s

TOTAL TIME
SCHEDULED
PLANNED PRODUCTION TIME DOWNTIME

RUNNING SCHEDULED
HOURS UNSCHEDULED DOWNTIME
DOWNTIME

RUNNING EXTERNAL PLANT TRIP UNPLANNED SCHEDULED

HOURS RESTRICTIONS CONTROLLED DOWNTIME
SHUTDOWN

The Total Time is the summation of the following:

 Running Hours which is defined as the time in which the plant is producing LNG rundown.
 Unscheduled downtime which includes the following:
o Downtime due to external or third party restrictions. For instance, due to feed gas
supply interruption, high seawater waves at marine terminal, etc.
o Downtime due to plant trips. For instance, due to an unexpected equipment and/or
instrument failure, etc.
o Downtime due to unplanned controlled shutdowns. For instance, due to a detected
equipment and/or instrument failure that could lead to unsafe process condition and it
is necessary fixing.

 Scheduled downtime includes schedule shutdowns due to scheduled maintenance events.

It shall be counted since LNG rundown stopping until the LNG rundown is achieved again.

4.0 Key Performance Indicators

4.1 Overall Efficiency
The Overall Efficiency is the ratio between the energy of the LNG Net produced in a period of time
and the energy of the feed gas in that same period of time.

LNG Net Energy

Overall Efficiency ( % )= x 100
Feed Gas Energy

This KPI will be calculated on a daily basis.

Daily overall efficiency calculation is only applicable for those days in which the plant was producing
LNG.

4.1.1 Calculation method

LNG Net Energy=LNG Net Volume x LNG Net HHV

Feed Gas Energy=Feed Gas Mass x Feed Gas HHV

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 Definition and Calculation of Production KPI’s

Where HHV = High Heating Value

Refer to Appendix for further details on the calculation of the LNG Net Energy and Feed Gas
Energy.

DATA RECORDED IN DATABASE

 Average Feed Gas Composition

 Feed Gas HHV
 Feed Gas Mass
 Feed Gas Energy
 Average LNG Net Composition
 LNG Net HHV
 LNG Net Mass
 LNG Net Volume
 LNG Net Energy
 Overall Efficiency

4.2 Liquefaction Efficiency

The Liquefaction Efficiency is the ratio between the energy of the LNG Rundown produced in a
period of time and the energy of the feed gas in that same period of time .

LNG Rundown Energy

Liquefaction Efficiency ( % )= x 100
Feed Gas Energy

This KPI will be calculated on a daily basis.

Liquefaction Efficiency calculation is only applicable for those days in which the plant was producing
LNG.

4.2.1 Calculation method

LNG Rundown Energy=LNG Rundown Mass x LNG Rundown HHV

Feed Gas Energy=Feed Gas Mass x Feed Gas HHV

Refer to Appendix B for further details on the calculation of the LNG Rundown Energy.
Refer to Appendix A for further details on the calculation of the Feed Gas Energy.

DATA RECORDED IN DATABASE

 Average Feed Gas Composition

 Feed Gas HHV
 Feed Gas Mass
 Feed Gas Energy
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 Definition and Calculation of Production KPI’s

 Average LNG Rundown Composition

 LNG Rundown HHV
 LNG Rundown Mass
 LNG Rundown Energy
 Liquefaction Efficiency

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 Definition and Calculation of Production KPI’s

4.3 Availability
Availability is the time in which the plant was available to produce divided by the total time.

Running Hours+Time of External Restrictions

Availability( %)= x 100
Total Time

This KPI will be calculated on a daily basis.

4.3.1 Calculation Method

Running Hours=Total Time−Scheduled Downtime−Unscheduled Downtime

Running hours is the period of time in which there is LNG Rundown Production. There is LNG
Rundown Production when the following conditions are met:

 LNG Rundown flow is measured by flowmeter outlet to the MCHE

 LNG Rundown temperature is lower than -150°C
 LNG Rundown valves are at least 15% open

DATA RECORDED IN DATABASE

 Running hours
 Time of external restrictions
 Time of plant trips
 Time of unplanned shutdowns
 Scheduled Downtime

4.4 Reliability
Reliability is the ratio between the running hours and the planned production time.

Running Hours+Time of External Restrictions

Reliability(%)= x 100
Planned Production Time

A low reliability will indicate that the plant was unable to produce LNG in the period of time that was
planned for production.

This KPI will be calculated on a daily basis.

Reliability calculation is not applicable during scheduled shutdowns.

4.4.1 Calculation method

Running Hours=Total Time−Scheduled Downtime−Unscheduled Downtime

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 Definition and Calculation of Production KPI’s

Planned Production Time=Total Time−Scheduled Downtime

DATA RECORDED IN DATABASE

 Running hours
 Time of external restrictions
 Time of plant trips
 Time of unplanned shutdowns
 Scheduled Downtime

4.5 Utilization
The utilization is an indication of the production rate achieved during the period of running hours. It
is calculated as the ratio between the mass of actual LNG rundown produced during the running
hours and the mass of the theoretical design rundown that could have been produced in those
running hours.

Actual LNG Rundown Mass ( tonnes )

Utilization (%)= x 100
Design LNG Rundown Mass during running hours (tonnes)

The utilization can be below 100% for the following reasons:

A) Tank Tops: production had to be reduced to avoid reaching or because tank tops were
reached.
B) GTG’s power availability: production was restricted due to limited power supplied by the
GTG’s.
C) Helper motor power availability: production was restricted due to issues with the helper
motors that could not provide the required power for refrigeration.
D) Refrigerants availability: production was restricted due to lack of refrigerants to adjust the
MR composition.
E) MCHE DP: production could not be increased due to high DP in the MCHE.
F) Pluspetrol Feed Gas Restrictions: production was affected due to feed gas restrictions
from Pluspetrol – Malvinas Gas Plant.
G) TGP Feed Gas Restrictions: production was affected due to feed gas restrictions from TGP
Pipeline.
H) Other: production could not be maximized due to other factors that may include equipment
failures or process upsets.

Reasons affecting utilization should be listed in order of priority. When reason “H” is used, a note in
the general comments of the day should clearly indicate what was limiting the LNG production.
When “F” or “G” are used, the number of hours in which the feed gas was curtailed and the LNG
production was affected should be recorded.

This KPI will be calculated on a daily basis and will be in use since January 01st 2015.

4.5.1 Calculation method

Refer to B.3 in Appendix B for the calculation details of the Actual LNG Rundown Mass.

The Design LNG Rundown is obtained from APCI’s heat & material balances. These provide the
expected design LNG Rundown flowrate at different ambient temperatures. Refer to Appendix D for
more details.

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 Definition and Calculation of Production KPI’s

DATA RECORDED IN DATABASE

 Actual LNG Rundown Mass

 Average ambient temperature
 Design LNG Rundown Mass
 Reasons why 100% utilization was not achieved
 Time of feed gas restrictions not causing LNG production stoppage

4.6 Nameplate Plant Capacity Utilization (NPC Utilization)

The nameplate plant capacity utilization is the ratio between the total actual mass of LNG Rundown
produced and the nameplate capacity of the plant.

Actual LNG Rundown Mass (tonnes)

Nameplate Plant Capacity Utilization(%)= x 100
Nameplate Capacity(tonnes)

This KPI will be calculated monthly on a fiscal Year-to-Date basis. The nameplate capacity of the
plant is 4.45 MTPA.

4.7 Feed Gas Usage

The feed gas usage is a measure of the percentage of actual feed gas that was used in a period of
time compared with the nominated quantity for that period.

Actual Feed GasVolume (MMSCFD)

Feed Gas Usage(%)= x 100
Feed Gas Nomination (MMSCFD)

The feed gas usage can be different to 100% for the following reasons:

A) Tank Tops: production had to be reduced to avoid reaching or because tank tops were
reached.
B) GTG’s power availability: production was restricted due to limited power supplied by the
GTG’s
C) Helper motor power availability: production was restricted due to issues with the helper
motors that could not provide the required power for refrigeration
D) Refrigerants availability: production was restricted due to lack of refrigerants to adjust the
MR composition
E) MCHE DP: production could not be increased due to high DP in the MCHE
F) Pluspetrol Feed Gas Restrictions: production was affected due to feed gas restrictions
from Pluspetrol – Malvinas Gas Plant.
G) TGP Feed Gas Restrictions: production was affected due to feed gas restrictions from TGP
Pipeline.
H) Other: production could not be maximized due to other factors that may include equipment
failures or process upsets.
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 Definition and Calculation of Production KPI’s

I) Operational adjustment error: the target is to have 100% of the feed gas usage. Being
both above or below 100% are penalized commercially. However feed gas is not directly
controlled by the panel operators so an acceptable margin of error should be allowed. Small
differences around the 100% feed gas usage will be assigned to operational adjustment
errors.

Reasons affecting feed gas usage should be listed in order of priority. When reason “H” is used, a
note in the general comments of the day should clearly indicate what was limiting the LNG
production. When “F” or “G” are used, the number of hours in which the feed gas was curtailed and
the LNG production was affected should be recorded.

This KPI will be calculated on a daily basis.

4.7.1 Calculation method

The Actual Feed Gas Volume is obtained from the inlet gas metering station data.

The Actual Feed Gas Volume and the Feed Gas Nomination are based on the AGA 8 standard
(Real gas conditions at 60°F and 14.6959 psia).

DATA RECORDED IN DATABASE

 Average Feed Gas Composition.

 Feed Gas HHV.
 Feed Gas Volume.
 Feed Gas Nomination.
 Reasons why feed gas usage differs from 100%.
 Time of feed gas restrictions not causing LNG production stoppage.

4.8 Flaring
The flared volume is a measure of the plant losses.

This KPI will be calculated on a daily basis.

4.8.1 Calculation method

The flared volume is obtained as a result of the plant balance:

F lare=Feed Gas−LNG Net −LNG loaded−Fuel Gas Consumption

DATA RECORDED IN DATABASE

 Flare Volume (MMSCFD)

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 Definition and Calculation of Production KPI’s

4.9 Refrigerant Usage

The refrigerant usage is a measure of the volume of ethylene and propane that were used to
prepare the refrigerant mixture for the natural gas liquefaction process. These measures are
registered as a difference of levels in horizontal cylindrical tanks.

This KPI’s will be calculated on a monthly basis.

4.9.1 Calculation method

Vol . of refrigerant consumed ( m3 ) =Vol.∈the horizontal tank(day n−1)– Vol.∈the horizontal tank (day n)

Refer to Appendix C for calculation details of the consumption of ethylene & propane.

DATA RECORDED IN DATABASE

 Propane Consumption (as level).
 Ethylene Consumption (as level).

4.10 Consumables Usage

The usage of consumables mostly Chemicals involved in the RO unit from the service water
unit is calculated as the ratio between the chemicals consumption in kilograms and the
volume of service water produced.
This KPI will be calculated on a monthly basis.

4.10.1 Calculation method

Consumption of consumable (kg)

Consumable Usage=
Volume of water produced (m 3)

DATA RECORDED IN DATABASE

 Consumption.
 Volume of service water produced.

5.0 QHSE Considerations (If applicable)

Not applicable.

6.0 References
ISO 6976 Natural Gas. Calculation of caloric values, density, relative
density and Wobbe index from composition.
ISO 6578 Refrigerated Hydrocarbon Liquids. Static measurement.
Calculation procedure.

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 Definition and Calculation of Production KPI’s

APPENDIX A: LNG Net Energy & Feed Gas Energy

LNG Net Energy

A.1) LNG Net Volume is calculated from the difference in LNG Tanks levels (m3) measured
by the tank gauging system.

A.2) LNG Net Density (

ρ LNG ) is calculated using ISO 6568.

A.3) LNG Net HHV is calculated using ISO 6976 for ideal gas @ 15 ºC, 101.325 kPa

A.4) LNG Net Energy = LNG Net Volume (m3) x

ρ LNG (Kg/m3) x LNG Net HHV (MJ/kg)

Feed Gas Energy

A.5) Feed Gas HHV is calculated using ISO 6976 for ideal gas @ 15 ºC, 101.325 kPa

A.6) Feed Gas Mass is obtained from the inlet gas metering station data

A.7) Feed Gas Energy = Feed Gas Mass (kg) x Feed Gas HHV (MJ/kg)

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 Definition and Calculation of Production KPI’s

APPENDIX B: LNG Rundown Energy

B.1) LNG Rundown HHV is calculated using ISO 6976 for ideal gas @ 15 ºC, 101.325 kPa

B.2) LNG Rundown Density is calculated using ISO 6568.

B.3) Actual LNG Rundown Mass is measured by an on-line flow transmitter. The measured
flow is corrected with the actual density of the LNG rundown.

B.4) LNG Rundown Energy = Feed Gas Mass (kg) x Feed Gas HHV (MJ/kg)

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 Definition and Calculation of Production KPI’s

APPENDIX C: Volume of Refrigerant consumed

C.1) For Ethylene volume consumed uses the following equations:

Horizontal cylindrical tank (elliptical heads)

Volume consumed = Partial Volume (day n-1) – Partial Volume (day n)

Total Volume = Volume in 2 heads + Volume in cylinder

Vt = 1/6*π*K1*D3+ ¼* π*D2*L

K1 = 2*b/D , Ze = H1/D , Zc = H1/D

For elliptical heads use K1 = ½, b= ¼*D

Partial Volume = F(level in the tank) = F(H1)

Partial Volume = 1/6*π*K1*D3*[F(Ze)] + ¼* π*D2*L*[F(Zc)]

Where: F(Ze) = - (H1/D)² * (-3 + 2*H1/D)

F(Zc) = ( (α – sin(α) * cos(α))/ π )

α = 2* Atan ( H1 / √((2*H1*D/2)-H1² )) (α is in radians)

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 Definition and Calculation of Production KPI’s

C.2) For Propane volume consumed uses the following equations:

Horizontal cylindrical tank (hemispherical heads)

Volume consumed = Partial Volume (day n-1) – Partial Volume (day n)

Total Volume = Volume in 2 heads + Volume in cylinder

Vt = 1/6*π*K1*D³ + ¼* π*D²*L

K1 = 2*b/D , Ze = H1/D , Zc = H1/D

For hemispherical heads use K1 = 1, b= 1/2*D

Partial Volume = F(level in the tank) = F(H1)

Partial Volume = 1/6*π*K1*D3*[F(Ze)] + ¼* π*D2*L*[F(Zc)]

Where: F(Ze) = - (H1/D)2 * (-3 + 2*H1/D)

F(Zc) = ( (α – sin(α) * cos(α))/ π )

α = 2* Atan ( H1 / √((2*H1*D/2)-H12 )) (α is in radians)

APPENDIX D: Design LNG Rundown

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 Definition and Calculation of Production KPI’s

D.1) Design LNG Rundown Flowrate:

The Design LNG Rundown is obtained from APCI’s heat & material balances. These provide
the expected design LNG Rundown flowrate at different ambient temperatures:

Ambient Temperature (°C) 14 18 24

LNG Production (kg/h) 551,425 540,692 521,449

The following equation is obtained from these three points:

Rd = -52.392*T2 - 1006.7*T + 575788

Where:
T = ambient temperature (°C)
Rd= Design rundown flowrate (kg/hr)

D.2) Ambient Temperature:

The ambient temperature is obtained from on-line temperature transmitters’ measurement

average.

D.3) Design LNG Rundown during running hours:

The Design LNG Rundown Mass is calculated every minute during running hours.
The sum of all the minute Design LNG Rundown Mass within the running hours in the period
of time considered for the calculation of the KPI shall be used.

Trun. hours

∑ LNG Rundown=Total LNG Rundown

i=0

If there is LNG Rundown with temperature lower than -180°C or higher than -140°C, these
data should be discarded because it is outside the temperature range for calculating the
LNG density with ISO 6568.

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