Energy and Power Overview - LNG

energyandpower.co.uk LNG CAPABILITY & EXPERIENCE

energyandpower.co.uk energyandpower.co.uk

The Company

Energy and Power is a Professional Engineering

Consultancy, formed in 2000. We offer our clients added

value to their operations through a responsive, flexible and

impartial service tailored to their specific requirements.

INTRODUCTION

Our Capability

We have an annual capacity of over 100,000 man-hours

and operate on a worldwide basis with projects supported

in UK, Europe, Africa, Former Soviet Union, Middle East, S

E Asia & Australasia and the Americas.

Clients include majors and multi-nationals such as E.ON,

BG Group, Shell, BHP Billiton, Dragon LNG, Grain LNG,

OMV and major banks (as technical advisors) and many

smaller independent international companies who rely on

our know-how to define and manage their capital projects.

Recent successes provide an indication of our breadth of

project experience, they include :

• Conceptual and detailed design for the Dragon LNG &

Isle of Grain import terminal, UK

• Due diligence of the Höegh LNG FPSO and Flex LNG

floating liquefaction units

• Owners Engineer for E.ON Ruhrgas for Swedish and

Croatian import terminals

• Feasibility & technology assement studies for floating

storage and regas units (FSRUs) for Shell, EVTL

(Pakistan), OMV, DSME, Vitol and Amstelco

(Indonesia).

The Company has UK offices in London and Baglan Energy

Park, South Wales. The Baglan office is ideally placed to

support the LNG terminals located in Milford Haven.

Our Service

Energy and Power provides engineering services to support

project development from feasibility studies through

conceptual design and FEED to project sanction and into

execution. We offer the experience and capability to

provide design, engineering, project management,

contracting support, site support engineering and

commissioning support services.

We undertake project definition studies, at screening,

feasibility and concept stage. Post sanction, larger projects

(>$50M) are then taken forward with Energy and Power

acting as Project Managers or Owners Engineer. Smaller

projects can be executed entirely by Energy and Power

teams.


Energy and Power has the capability to provide services

across a range of sectors from upstream to downstream,

including:

Upstream

Offshore

Onshore

Early Production Facilities

Liquefied Natural Gas

Liquefaction (onshore and floating)

Regasification (onshore and floating)

Marine & Jetties

Gas Storage

Pipelines.

CAPABILITY ACROSS ENERGY SECTORS

CONSULTING CONCEPTUALISATION

AND STUDIES

PROJECTS AND PROJECT MANAGEMENT

Due Diligence

Owner’s Engineer

Independent Engineer &

Expert Witness

Business Counsel

Corporate Structure

Capital Investment

Management

Peer Review

Risk Management

Environmental

Assessments

Operations and

Performance Assessments

Quality and Safety Systems

Feasibility Studies & Option Screening

Conceptual Design Process Studies and

Support Modelling – Financial – Process – Pipeline – Power – Performance Cost Estimating

(CAPEX & OPEX)

Project Management Front End Engineering

Design Detailed Design Procurement Construction Supervision

& Management Programme Management Commissioning Cost Control Brownfield Modifications

Site Support Engineering

Energy and Power deliver our services through three business streams: Consulting, Conceptual Engineering and Projects, aligned to

clients’ requirements from concept to commissioning in the project lifecycle, with multi-discipline Professional Engineering Consultants

working in a matrix organisation, aligning staff skills to client needs. This enables us to provide flexible services.


Project Development Guidelines

Energy and Power operate to the Project Guideline

system to provide project structure but allowing flexibility

of approach. The key being that it ensures consistency of

approach and focuses on key project drivers, regardless

of the nature, technology and scale of a project.

The gate process and submissions required for

consideration and approval at each gate assist in

ensuring that the project will meet the financial targets in

terms of CAPEX and OPEX and the requirements for

safety and the environment as set down in the project

brief.

Programme Management

The team will develop a project schedule, addressing all

aspects of the development, allowing independent

qualitative and quantitative assessment of project

delivery timelines.

MANAGMENT SYSTEMS MANAGEMENT SYSTEMS


CONSULTING

Based on project and business experience gained in all sectors and across the globe, we have honed our own, fully-accredited

management systems. We now make those services available to clients either within an engineering project team or as an independent

business counsel service.

Project Review and Planning

For any project review our activities are driven around

the project premise, with reviews driven by Energy and

Power Project Guidelines, using standard tools and

methodologies, it means that all projects are reviewed

against the same benchmark. Such planning is

fundamental to a realistic business case that considers all

costs, functional requirements and eventual

decommissioning and reinstatement.

Project Risk Management

Risk assessment – technical, commercial and contractual

– will be carried out by the Energy and Power team based

upon the information and guidance being provided by the

client. The clear identification of risk will be a most

important aspect in the management and control of the

project, and Energy and Power will provide clear,

unambiguous reporting on all areas of cost and risk via

continually updated Risk Registers for each of the distinct

areas identified.

Due Diligence and Mergers & Acquisitions

Our Due Diligence teams provide the guidance for the

key questions of:

How much?

How long?

What risks exist?

What mitigation measures exist?

Augmenting our core engineering design services, we

have a burgeoning experience of due diligence studies,

working on behalf of prospective purchasers of

infrastructure, assets and prospects, and as an

independent Technical Authority providing third-party

project audit, design verification and project reviews.

Our independent position, separated from the drivers of

an Engineering Contractor or EPC Contractor enable us to

provide impartial advice to lenders, institutions or buyers.


CONSULTING

Engineering Verification

Energy and Power has a wealth of experience in facility

and process design in the oil and gas industry including

LNG facilities. Our team members possess extensive

relevant technical and management experience within this

sector. In particular our staff development systems

develop team members experience in managing facilities

through the complete project lifecycle.

An engineering verification team will focus on key aspects

that deliver the project objectives. Where existing facilities

are in the operation phase we are able to provide guidance

on all technical and commercial aspects of project

development planning including potential brownfield capital

investments.

Client Management Systems

Our Business Consultants will review clients management

systems for Projects and Investment decision making and

where necessary improve and develop new Management

Systems aligned to the business.

Business Structure and Strategy

Assistance and counsel on the implementation of robust

protocols and procedures when moving into production

and related industry areas.

Health, Safety and Environment

There is no second-best solution to safety – the health of

all upon whom a development impinges is of paramount

importance; and the environment is fleetingly in our

custody, to be handed on intact or enhanced. As

independent consultants we undertake major HAZID and

HAZOP studies and chair workshops, with subsequent

monitoring and resolution of issues raised, develop safety

cases, carry out QRA studies and prepare the safety and

record documentation.

We are also able to support EIA studies by preparing

scopes of work, reviewing proposals and overseeing the

selected consultant.

Value Improvement

The increase in value or functionality within a cost-

controlled environment is a far more useful business tool

than simply paring or lopping elements to meet a project

budget.

Facilities and Process Design

Whether for improvements on existing or development of

new facilities, thorough scheme development is crucial to

all aspects of business and value planning.

Reliability, Availability and Maintainability

Accurate assessment of these factors is a key component

in production, operational and life cycle costing.


The screening, feasibility and concept stages are vital to a

successful capital investment in any development. The

level and detail of work we undertake is in accordance

with the structure of the Project Guideline system,

ensuring consistency of approach and focussing on key

project drivers whilst providing clear guidance to higher

management.

Often a local presence will be vital in assisting in

developing a good understanding of the constraints and be

beneficial in facilitating face-to-face discussions with

relevant authorities.

The teams will be experienced in the negotiation of

consents, approvals and adoption agreements as well as in

the technical aspects of design within their disciplines.

Energy and Power quickly define projects, providing technical definition, accurate benchmarked costs and schedule, removing

commercial and technical risks.

CONCEPTUAL ENGINEERING

Screening and Feasibility Studies

Screening and Feasibility Studies provide Capital

Investment advice, based upon limited data, about the

worth of investing resources in a project development.

For some developments, no obvious analogy exists, and

novel areas need specific technical and/or cost studies

undertaken to reduce the uncertainty.

After gathering more information, possible development

concepts or options can be postulated and compared.


Option Selection and Concept Design

During optimisation studies any and all features of the

Base Case can be reviewed increasing technical definition

and reducing risk. Options are usually developed to a level

of a costed equipment list with factored bulks to give a

development estimate. At this stage, budget prices should

be obtained for critical items.

The selected option from the option selection report stage

can be refined and honed in concept design to provide

improved accuracy and technical definition for a planned

development and along with economic analysis and risk

reviews to provide the basis for the commencement of a

FEED study.

Conceptual Engineering & Study Management

The Energy and Power Conceptual Engineering team is made up of process, and other facilities discipline

engineering consultants with project management input. The team can be located in client offices, if required.

Energy and Power will always ensure that our studies are oriented at the client’s particular needs, scopes and

methods, which rarely remain the same between developments, even for the same client.

CONCEPTUAL ENGINEERING


ENGINEERING

Engineering is at the very heart of our business, and our

principal resource is our Chartered Engineering staff. Our

approach is intellectually rigorous and enquiring so that we

develop optimum and elegant solutions, not a minimally

compliant response.

To reach that efficient optimum, we integrate engineering

design from the outset, continually refining that design during

each project stage. Thus, at each decision gateway, the

engineering definition contributes to the informed executive

sanction to proceed.

Process engineering is normally the foundation of many of our

projects, and we provide expertise in each of the many sub-

specialities, such as oil, gas, LNG and petro-chemicals.

Supplementing that often central skill, are electrical,

mechanical, controls, instrumentation, structural, health safety

and environmental and civil and marine engineers. Again,

each discipline has specialists in particular aspects – such as

rotating machinery, heat transfer, safety, reliability, power

generation, commissioning and the like.

Naval architecture is provided as either an engineering or

consultancy service and is a discipline central to many

offshore and LNG developments So, from scope definition,

through feasibility, detail design and implementation to

commissioning and operation, unique and unrivalled design

experience is available to bring projects to a fully engineered

conclusion.

DISCIPLINES APPLICATIONS DELIVERABLES

Energy and Power will take forward

the conclusions from Concept studies

into FEED stage Engineering.

Production of PFDs and General and

Detailed specifications will be

generated by a range of engineers

chosen from Energy and Power’s

team of Process, Mechanical,

Electrical, Marine, Structural and

Control & Instrument engineers.

Energy and Power will identify and

apply the appropriate standards and

compliance requirements from

industry standards including NFPA,

EN, ISO, API, ASME,GOST, or Marine

Codes from DNV, Lloyds, BV or ABS.

Energy and Power will understand

and define the Owner’s requirements

and reflect these in the project

specifications. This will ensure that

the operational, maintenance and

safety aspects of engineering meet

project expectations.

Energy and Power have over 10 years of

experience in Engineering multidiscipline projects.

For LNG projects this will typically include:

• Gas gathering

• Gas treatment facilities

• Condensate separation & stabilisation

• LPG extraction and fractionation

• LNG liquefaction facilities

• Storage and export systems

• Import terminals

• Export gas pipelines

These projects apply to both traditional onshore

facilities and emerging offshore facilities for both

green or brown field sites.

Engineering applications also include performance

investigation and upgrade engineering of existing

or out dated equipment to meet current

operational demands (availability, productivity and

reliability) and safety standards.

Energy and Power offer lifetime support to all

aspects of installed assets to ensure that the

Owner’s assets performance remains efficient and

competitive.

Energy and Power will provide Drawings and

Specifications together with supporting data

in electronic or hard copy format in

accordance with project requirements.

We are proud to have developed in-house

software such as our Cost-Weight-Space

[CWS] model, which is a cost estimating

package, and Procuro, our procurement

package. We use the hydraulic design

package OLGA, the pipe system design

software Pipesim and the process modelling

tool HYSYS, while other specialist software is

purchased on a project basis under license.

Other software packages held by Energy and

Power include: Aspentech One, AutoCAD,

CADWorx, and SolidWorks.

Energy and Power will provide a complete

service as Owner’s Engineer for

procurement vendor and evaluation, project

programming and construction supervision

(CDM and HSE). Additional HAZOP and

Training Plans are provided in accordance

with onshore or offshore regulations and

Owner requirements.

FEED & Detailed Design

Energy and Power Engineering teams will prepare the Engineering specifications, scopes

of work, definition drawings and documents, using our Engineering systems, design

packages, certified to ISO 9001.


Procurement

Energy and Power will place Purchase Orders and prepare

Contract packages for the tenders to be released and the

on-going management of the contracts.

Construction Completion and

Commissioning

At Mechanical Completion, Energy and Power will provide

Quality Assurance services and commission the plant with

Operations teams . Energy and Power have a strong track

record in the management of commissioning and

completions activities, for multiple EPC contractors on

numerous projects, leading to an efficient handover and

meeting the scheduled start-up for facilities by the

relevant Operators.

Operations Management

We have the personnel and expertise to help you identify

and deliver operational efficiencies and cost reductions.

Energy and Power cares profoundly about health, safety

and the environment and our primary goal is to ensure

that we, our clients and suppliers operate in a safe and

environmentally considerate manner.

Project Management

Energy and Power is well versed in managing and

structuring large scale projects in the energy and related

sectors. Our experienced consultants use our proven

Management systems to undertake independent cost,

schedule, and technical analysis of planned projects.

During Execution, Energy and Power teams can provide all

Project Management and engineering services.

Project Review and Planning

Our experienced consultants use our proven Management

systems to undertake independent cost, schedule, and

technical analysis of planned projects.

For any project review our activities are driven around the

project premise, with reviews driven by Energy and Power

Project Guidelines, using standard tools and

methodologies, it means that all projects are reviewed

against the same benchmark.

Cost Review and Economics

It is standard practice for Energy and Power to produce

independent Estimates for every project under review. The

estimates will cover capital equipment costs (CAPEX) and

operating costs (OPEX).

All estimates are generated using the Energy and Power

Standard Estimating Practices. Given the unique nature of

our business Energy and Power have an extensive

database of project costs estimates and turn out costs

including current construction rates.

PROJECT MANAGEMENT SERVICES

HSE During Operations

Health, Safety and Environmental Management is

fundamental to an organization, allowing it consistently to

identify and control its HSE risks, reduce the potential for

accidents, help achieve compliance with HSE legislation

and continually improve its performance. We are able to

fulfill all your HSE Management requirements in a

practical, pragmatic and cost effective manner with Energy

and Power capabilities ranging from COSHH to HSE

Management audits.

Operating Manuals & Procedures

We are responsible during the normal course of project

development and implementation for producing operating

procedures and manuals to be utilised during

commissioning, start-up and later normal operation. We

are thus well placed to support you in your efforts to keep

these manuals and procedures evergreen and to develop

new ones should there be significant changes to your

operations such as process changes, staffing re-

organisation and process control improvements.

Operator Training

The skill and knowledge base of your workforce is crucial

to the success of your operations. The continuous training

and expansion of the skill base can be supported by our

experienced and innovative engineers developing training

programs to suit your and your workforce’s needs.


Energy and Power Owner’s Engineer Team (OET) will assist

the client in managing and controlling the technical,

commercial, planning and interfaces for the project. We

have previous experience in undertaking the following

scope:

• Project Controls and Services

• Budget assurance

• Schedule assurance

• Commercial Agreements

• Legislation Compliance and Authorities Interfaces

• Health Safety and Environment Management;

• Quality Management

• Procurement of Equipment and Materials

• Verification and Quality Assurance of project

engineering Deliverables and Seller Documentation

• Commissioning management of Facilities and Pre-

Operational Testing

• Handover to Operations Verification and Sign-off.

An Owner’s Engineer Team will provide:

• Technical Assurance

• Asset Integrity

• Value Assurance

• Cost and Programme Protection through

implementation of project controls.

The aim of the Owners Engineer is to assure stakeholders

that project implementation is managed in accordance with

the stakeholder objectives, for example:

• Appropriate for the full life of the operation, including

meeting asset integrity requirements

• In line with commercial requirements

• Will meet client’s international business principles, e.g.

in relation to safety, health, environment and society,

(during construction and operation)

• Maximise value.

Stakeholders include, for example, Client Organisation, its

shareholders, co-venturers, governmental bodies,

development / project / operations staff.

The advantage of utilising an Owner’s Engineer is early identification and management of risks and opportunities; it encourages

involvement of all relevant stakeholders and experts from relevant functions and enables collaborative support and a “challenge”

approach to the work to be carried out.

OWNER’S ENGINEER


PIPELINE SERVICES

Assess, evaluate and co-ordinate the technical, commercial and project management issues so that new pipeline infrastructure is

created cost effectively on time.

The creation of new pipelines is a complex affair

involving many different parties with interests ranging

from land ownership, public safety, environmental

impact, project execution, technical integrity and

commercial viability. Energy and Power has the capability

and experience to undertake these issues.

Pipeline Conceptualisation

As with all projects, true value is created during the

initial feasibility study phases. Energy and Power can

help create this value in the early stages of pipeline

projects where we direct our initial effort on determining

the market need, pipeline design, specification of pipe

and components, route selection, environmental

assessments, permits and consents and where necessary

public consultation and land acquisition.

Through this, and in combination with our pipeline

experience covering onshore and offshore pipeline

systems conveying natural gas, LPG, NGL, crude oil and

oil products, we are able to offer a comprehensive

service to evaluate their pipeline needs and

requirements.

Our engineers and managers direct their efforts to meet

the needs of producers and shippers in moving their

product to the marketplace with due regard to flow

assurance, stress analysis, capacity and corrosion

protection and to create cost effective designs which

minimise the impact of construction projects on the

environment and for onshore pipelines, the impact on

communities and landowners.

Pipeline Project Management

As a pipeline project transitions through the phases of

design, procurement, construction, testing and

commissioning, Energy and Power can support clients

through the provision technical and project management

expertise in all these areas.

Prior to construction Energy and Power initiate

negotiations, environmental permitting and all other pre-

construction activities. We can also undertake the

procurement of long lead pipeline materials and

equipment, the award of major pipeline construction and

installation contracts and the overall project

management of the pipeline project through to

completion.


MANAGMENT SYSTEMS LNG SECTOR EXPERIENCE – OVER 50 PROJECTS TO DATE

Our LNG Capability can be divided into

two categories:

Development Type:

Onshore Liquefaction;

Offshore Liquefaction, LNG-FPSO;

Onshore Import Terminals;

Offshore Import Terminals (FSRU).

Services Provided:

Due Diligence;

Owner’s Engineer;

Feasibility Studies;

New Technology Evaluation;

Option Screening;

Conceptual Design;

FEEDs for Small Projects

Engineering Support;

Site Support;

Leading Workshops.

Lifecycle Costs

Viable life cycle economics require correct early choices based on knowledge of technology and accurate capital and

operational expenditure estimating. Energy and Power’s teams provide strength in all areas required for robust project

planning of costs and timescales.

We have produced comparative economic models of all-electric LNG plants against more traditional gas turbine driven

compressors. Such studies also quantified the reduction in carbon emissions, particularly if the electrical power is

generated using combined cycle.

Emerging Technologies

From small scale boil-off gas recovery, to floating LNG, to world-scale onshore plants, we have undertaken process studies

using existing and innovative new liquefaction and gasification technologies. We now deliver that expertise to guide

client’s projects to the most appropriate LNG solution.

Experience and Innovation

With our offshore and onshore experience of plants from

200 TPD to 6 MTPA, plus intellectual property development

in a patented LNG process, Energy and Power is uniquely

qualified to deliver your LNG project.

We have consultants from both design and operational

backgrounds whose research, design and advice

concerning the numerous LNG technologies available is

informed, accurate and commercially aware. LNG EXPERIENCE


MANAGMENT SYSTEMS LNG SECTOR EXPERIENCE - KEY PERSONNEL

Our LNG Team of professional engineers offers:

Experience gained from over 30 import terminals worldwide;

Experience gained from over 15 liquefaction projects worldwide;

19 FLNG projects – LNG-FPSO & FSRU.

BRIAN SONGHURST:DIRECTOR OF LNG

Brian has over 40 years experience in the oil & gas industry

working in both upstream and downstream sectors for offshore

& onshore projects. He has worked for operating companies and

major contractors in senior positions for engineering, project

management and sales. Most recently Brian has focused on LNG

liquefaction and import terminal projects. He is also Chairman of

Institution of Chemical Engineers Oil & Natural Gas Group

(SONG) and organizer of the monthly oil & gas technical

meetings in London.

RICHARD RIDDELL:DOWNSTREAM CONCEPTUAL SERVICES MANAGER

Richard is a senior process consultant with over 35 years

experience in downstream chemical industries. He has worked for

contractors, operating companies and operating company in-house

contracting organisations. He has worked in the polymers,

vegetable oil extracting and refining and general chemicals areas.

Since joining Energy and Power he has worked on gas processing

plants, LNG regasification construction and commissioning and LNG

small project implementation. A significant part of his career has

been spent on site checking-out and commissioning or assisting in

production troubleshooting and efficiency gains.

PAUL EMMITT:DOWNSTREAM PROJECTS MANAGER

Paul is a Chartered Engineer who had 8 years experience in

process plant operations prior to joining Energy and Power. He

led strategic reviews of plant performance to identify and

implement new, and to improve existing processes, leading to a

sustainable increases in plant MEI and product RFT. Whilst at

Energy and Power he has worked on the construction and

commissioning of a LNG regasification plant and been deeply

involved in the development of a proprietary small scale LNG

liquefaction process.

HUW WILLIAMS:NAVAL ARCHITECT & PROJECT ENGINEER

Huw is a chartered engineer with 15 years’ experience of multi-

discipline marine and offshore engineering projects. At Energy and

Power, Huw has led a number of FSRU feasibility studies, together

with technical due diligence and field development studies on a

number of FLNG concepts. Huw joined Energy and Power from

ExxonMobil where he was involved in the development of the Q-

Flex and Q-Max LNG carriers. In addition to LNG projects, Huw has

experience in the design and construction of oil FPSOs and other

major conversion projects.


DRAGON LNG TERMINAL - SITE SUPPORT ENGINEERING

UK

Conceptual Design, Owners Engineer, Technical Support, and Engineering Management.

Energy and Power have been involved with the Dragon LNG project at Milford Haven for a number of years. Our engineers have provided a

range of technical and management support to the terminal owners. This support has included conceptual design scopes and the provision of

Owners Team support and direct support at site where we assigned a multi-discipline team of engineers to support the project through the

critical phases to completion and operation.

Dragon LNG is a joint venture company of BG-Group and Petronas, developing a 6 MTPA LNG terminal at Milford Haven in Wales. Energy and

Power were requested by Dragon LNG to provide project engineering support to assist in the close out of the engineering work. Energy and

Power were awarded a study to assess different vaporiser options to demonstrate that submerged combustion vaporisers are the preferred

option.

Energy and Power has undertaken five separate scopes of work. The first covered a study of the different types of LNG vaporisers to support

the EIA which was based on the use of submerged combustion vaporisers. The concern was limiting nitrate discharge into Milford Haven

Harbour. The second covered owner’s engineer representation in the EPC contractor’s office. The third covers the award of the site engineering

contract with the assignment of a multi-discipline engineering team to site with specialist support from Energy and Power’s offices in London

and South Wales (Baglan) offices. The fourth covers the provision of a project engineer working at the EPC contractors’ office to expedite the

closure of the outstanding engineering design issues.

Additionally we identified and assessed all the possible vaporiser option for the terminal e.g. open rack, submerged combustion, air, forced air,

intermediate fluid, cold power etc. The report described each option with a flowscheme and process description and the environmental impact.

The report then compared the options to demonstrate the selected option.

PROJECT EXPERIENCE


HÖEGH LNG - LNG FPSO

West Africa

Pre-FEED and Technical Support. Due Diligence

Höegh LNG contracted Energy and Power to undertake a due diligence of the pre-FEED design of their proposed LNG FPSO in West

Africa. The design review covered all aspects of the hull, storage, utilities, offloading and topsides (gas treatment & liquefaction) but

with particular on the topsides and integration with the hull. Review included compliance check with design basis, major codes and best

practices.

Energy and Power was requested to undertake a multi-discipline design review of the proposed concept defined as a series of

conceptual design packages. The review focused on the topsides plant but also cover the naval architectural aspects at a summary

level.

The review covered the proposed design basis, the process design of the complete system from turret through slug catcher, gas pre-

treatment, liquefaction and LPG recovery and condensate stabilisation and all utility systems. The electrical design review covered the

major power generation system for the all electric drives. Layout reviews covered safety distances, access for maintenance and escape

routes. Structural reviews addressed the proposed module support arrangements given the ship motions for operation and survival

conditions. The naval architectural review covered the ship’s hull and associated storage and marine support systems.

The deliverables comprised a list of items that required resolution before moving forward to the next stage of the project. The results

were presented to the project team as a workshop and in a final bound report.

PROJECT EXPERIENCE


AMSTELCO – EAST JAVA COMPANY

Indonesia

Feasibility Study

Energy and Power undertook a feasibility study to define and cost the facilities necessary to import, vaporise and transport gas onshore

to the gas grid tie-in point in Surabaya. The study included the LNG shipping logistics and evaluated the feasibility of an FSRU facility

located either offshore with subsea gas export or inshore with gas over the jetty using hard arms.

Indonesia is moving from a net gas exporter of gas to a net importer and the West Java FSRU project has just been awarded. Gas is

now needed for East Java to meet the increasing demand for energy in that region.

The study investigated the different import options with the main emphasis on a floating storage and regasification unit (FSRU) either

located offshore or inshore using a jetty. For the offshore case the gas would be exported via a turret and subsea pipeline. For the

inshore jetty case the gas would be exported via a hard arm over the jetty. The study included hull selection and sizing as well as the

onshore gas pipeline to the tie-in point. The scope also included the LNG shipping logistics from several liquefaction plant locations.

The study included the preparation of CAPEX and OPEX estimates and an overall project schedule. From this data a tolling charge was

calculated.

PROJECT EXPERIENCE


FSRU MARKET AND TECHNOLOGY ASSESSMENT

Worldwide

Feasibility Study

Energy and Power were requested by Shell Global Solutions to list and assess the current providers of FSRU facilities. The assessment

covered both technical and commercial considerations.

The scope covered discussions with all the major FSRU service providers i.e. Excelerate/Exmar, Golar LNG, Höegh LNG and Mitsui OSK

Lines to determine their offering. The report addressed the following:

• Who are the main market players?

• How many FSRUs are currently in operation?

• What are their capacities and utilisations?

• How many and which ones have taken final investment decision?

• How many are in a definition phase?

• What are the technological concepts applied?

• What are the potential costs (CAPEX, OPEX, people on board, etc)?

• What is the expected industry trend.

PROJECT EXPERIENCE


GASSI TOUIL GAS DEVELOPMENT & LNG PLANT

Algeria

Feasibility and Conceptual Engineering

Energy and Power completed a two-part feasibility and concept engineering Project to review and refine the design for the Gassi Touil gas

facility in Algeria and associated LNG terminal at the coast.The work involved evaluation of the gas field, development of processing options,

option selection and full CAPEX OPEX and execution plan development for the selected option.

The Gassi Touil fields reserves were estimated at 4.8Tcf (trillion cubic feet) wet gas-yielding 4.4Tcf dry gas, 76 million barrels of liquefied

petroleum gas (LPG), and 73 million barrels of condensate. The concept developed was for two production centres to maintain a plateau for

feed gas to the LNG plant for its economic life. Pipeline gas, stabilised condensate and mixed LPG will be exported into transmission lines local

to the facilities. The gas export rate will be equivalent to the LNG off-take from Arzew.

The LNG development at Arzew is a new LNG plant next to the existing Bethioua LNG plants, export will be via an export route to an existing

pier in the Bethioua port that will be modified for LNG loading. It will produce 4 million tonnes per annum of LNG (180 trillion BTU) and

approximately 190 barrels/day condensate, 1400 barrels/day butane and 7300 barrels/day propane.

This work addressed the technical feasibility addressed the overall project, the CAPEX summaries for each project, the overall execution plan

considerations together with a summary of the projects with a risk review and status check against the Energy and Power feasibility tollgate.

The work undertaken included development of screening estimates, development schedules Basis of Design, Site Visit at Gassi Touil and

Arzew, Cost Estimates, Technical Reviews, HSE studies and Risk Reviews. Full descriptions of the upstream and LNG processes were provided

and outline execution plans.

PROJECT EXPERIENCE


GNLQ – TERMINAL CERTIFICATION OF DESIGN COMPLIANCE

Chile

Audit

Energy and Power were asked to check the design to ensure compliance with LNG international code NFPA 59A ‘Standard for the Production

Storage and Handling of Liquefied Natural Gas (LNG)’ 2006 Edition.

The GNL Quintero LNG import terminal was under construction at Quintero Bay, about 160 km NW of Santiago and was scheduled to enter

service in mid 2009, with completion of the facilities in 2010. The terminal was being built for the owners GNL Quintero SA by the EPC

contractor CB&I. GNLQ is a joint venture of ENAP, Endesa, Metrogas and BG-Group.

As part of the operational approvals process it was necessary for BG-Group to receive approval under the Chilean LNG Plant Safety Regulations

from the regulatory body, Superintendencia de Electricidad y Combustibles (SEC). One of the requirements for this approval was that BG-

Group provided an independent certification of compliance of the terminal design with the requirements of the principal design code referred to

in the Safety Regulations, NFPA 59A. The purpose of this compliance review was to satisfy the requirement of an independent review.

The review was based on the issued for construction documents and structured using a series checking matrices listing the code requirements

and sorted by discipline and criticality with safety being first.

Some non-compliances were found and quickly resolved by design modification. Issue of our report enabled issued of the regulatory body

approvals.

PROJECT EXPERIENCE


DRAGON OIL – CHEKELEN GAS MONETISATION OPTIONS

Turkmenistan

Independent Cost Review

Independent review of study report produced by Gas Strategies for Dragon Oil to evaluate the different options to monetise associated gas that is

currently flared.

An independent review was undertaken of the possible options to monetise the gas. These included synthetic crude, LNG, CNG, Methanol,

Ammonia/Urea and power generation.

Energy and Power undertook an independent review of the possible options and developed capital (CAPEX) and operating costs (OPEX) for each

option to enable a review of the economics. Costs were used from Energy and Power’s cost data base, supplemented by additional information

from technology providers where required. The principal gas monetisation options considered were:

• Synthetic crude for export by existing crude oil pipeline;

• LNG;

• Marine CNG;

• Methanol;

• Ammonia/Urea;

• Power Generation.

PROJECT EXPERIENCE


CENTRICA ENERGY - LNG LIQUEFACTION PLANT

Tobago

Cost Benchmarking

Bench marking of previous LNG liquefaction plant costs to assist Centrica in validating the costs developed by their project team.

An independent review was undertaken of the costs of liquefaction plants and broken down into the principal costs drivers. This included a

focus on the main cost drivers including location and escalation as well as the unit operations.

An independent review was undertaken of the costs of liquefaction plants and broken down into the principal costs drivers of:

• Gas reception;

• Gas treatment;

• Liquefaction plant;

• Storage tanks;

• Export jetty;

• Utilities.

Based on these cost data metrics were developed to assist Centrica Energy in validating their own in-house cost estimate based on their

conceptual design.

OPEX data was also provided where available.

PROJECT EXPERIENCE


OMV –FSRU STUDY AND COMPARISON WITH ONSHORE TERMINALS

Worldwide

Feasibility Study

Preparation of a study report that listed current and planned FSRU developments, and described the technologies, costs and schedules.

The study report was prepared to assist OMV in understanding the FSRU market and solution providers, the technology used and the costs

(CAPEX and OPEX) and schedule. This information would enable OMV to capture the value that can be obtained by using a floating storage and

regasification facility as opposed to traditional onshore terminals. The report included a section on the advantages and disadvantages of FSRUs

and compared $/MMBTU costs with onshore terminals.

The report was prepared from a combination of in-house data and discussion with solution providers. The report considered the following

aspects:

• Typical business model;

• Emerging technologies;

• Regional trends;

• Success criteria of LNG FSRUs;

• Economics of FSRUs vs. onshore terminals;

• General market survey on existing and proposed FSRUs;

• Technical specifications of existing and proposed FSRUs.

PROJECT EXPERIENCE


PROJECT EXPERIENCE

ENGRO VOPAK - PORT QASIM LNG IMPORT TERMINAL

Karachi, Pakistan

Feasibility Study

Preparation of a feasibility study to describe and cost various options for the importing of LNG into Port Qasim.

Pakistan needs to quickly supplement its indigenous gas production to offset the decline and meet the expanding needs for electrical power.

The study addressed 5 possible locations and 4 possible concepts. The study will enable EVTL to assess the various options and make a

recommendation on the best way to proceed.

The study was prepared from a combination on in-house data and data from solution providers. The study considered one inshore brownfield,

three inshore greenfield and one offshore location and included the export pipeline to the grid tie-in point. The following primary concepts

were considered:

• Jetty moored FSRU;

• Jetty moored FSU with barge mounted regasification;

• Jetty moored FSU with onshore regasification;

• Offshore moored FSRU (STL buoy/turret moored).

For each case the concept was described, CAPEX and OPEX estimates prepared, together with schedules, allowing a recommendation to be

made. A financial model was prepared based on the selected option.Sub-options included rigid arms vs. flexible hoses for LNG transfer,

conversion vs. newbuild, BOG management and vaporiser selection.


PROJECT EXPERIENCE

GAS STRATEGIES

ONSHORE & FLOATING LNG IMPORT TERMINALS

Caribbean Island

Feasibility Study

Preparation of a study report containing costs and schedule data for several options for the import of LNG. The GS study report was prepared

for a major power generation company.

This Caribbean island had an increasing need for electrical power and needed assistance in determining the import options and the economics.

Gas Strategies prepared the final report and Energy and Power provided input on the options and costs for the import options considered.

The options and cost report was prepared from a combination on in-house data and solution providers. The report considered the following

aspects:

• Onshore terminal;

• Offshore terminal (FSRU);

• Hybrid with early import via FSRU followed by an onshore terminal.

The study included a description of the options and associated costs (CAPEX & OPEX) and schedule data.


PROJECT EXPERIENCE

BHP BILLITON

LNG-FPSO BARGE CONCEPTUAL DESIGN STUDY

Nw Shelf, Australia

Conceptual Design

Preparation of a conceptual design report for 3x1 MTPA liquefaction trains to be mounted on a production barge. This data to be used to

compare the concept with BHP Billiton’s in-house cLNG process.

The study was based on the Scarborough gas field. Due to the long distance offshore BHP Billiton wanted to assess the option of using

floating liquefaction. The studies were based on using the innovative Proteus LNG liquefaction process that does not require a refrigerant

stream (auto-refrigeration).

The report was prepared based on installing 3x1 MTPA liquefaction trains on the deck of a barge. The LNG would be stored in the hull. The

study included the following scope:

• Process design & sized equipment list;

• Utility systems design and in particular cooling system;

• Technology risk assessment and mitigation measures.

• Layout studies;

• Costs and schedule;

• Unit production costs.


PROJECT EXPERIENCE

FLOATING STORAGE & REGAS (FSRU) STUDY

INCLUDING SUBSEA AND ONSHORE GAS PIPELINE

Confidential

Feasibility Study

Preparation of a feasibility study for the import of LNG using a floating storage and regasification unit (FSRU). Scope included the subsea gas

pipeline to the grid tie-in point. The study considered the feasibility of an offshore moored FSRU and subsea pipeline for the importation and

regasification of LNG and delivery to the gas distribution grid. The study considered the following aspects:

• Concept definition and description;

• Technology selection;

• Site selection;

• System availability based on metocean studies;

• Subsea pipeline definition;

• CAPEX, OPEX and schedule;

• Financial modelling;

• HAZID and risk review;

• Project execution planning;

• Operational planning;

• Interface with the EIA consultant.

The study was performed in association with TriZen to define the concept for the importation of LNG using a floating storage and regasification

unit.

Wales Office Baglan Bay Innovation Centre

Central Avenue Baglan Energy Park

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Energy and Power Overview - LNG

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