Alaska Gasline Development Corporation

Observation on Current Plant Design

Revised-June22,2018

KeijiAkiyama

Discussion topics

1. Project Economics Improvement - OPEX2. Plant Cost Optimization - CAPEX3. LNG train layout – Observation and Potential Issues

2

Project Economics Improvement - OPEX

1. Minimize natural gas consumption- GHG emission• Process scheme• Gas turbine and compressor scheme and model selection• Waste heat recovery2. Improve plant availability• Gas turbine and compressor maintenance3. Increase LNG production capacity• Effectively use large temperature difference.• Consider production reduction during summer.

3

Temperature Distribution Profile – Nikiski Airport4

Summeranda*ernoononly

Wholeyearround

AirCoolerdesign

Hydraulicdesign

Ambient Temperature Profile – Nikiski Airport5

SummerandA+ernoononly

Wholeyear

AirCoolerdesign

HydraulicDesign Average

GHG Emission Comparison – without Native CO26

ton-CO2/ton-LNG

Industrial GT

Aero-derivative GT

Steam Turbine

GTP

LNG

Pipeline

Waste Heat Recovery to improve energy efficiency

• Fuel gas consumption is a major portion of plant running cost.

• Wrt fuel consumption of entire plant, major consumers are Ref. comp. GT (< 70%), notpower gen. GT (< 30%). Waste heat recovery from the latter is less effective.

• Waste heat recovery unit on Ref. comp. GT may have modularization issue.

• Usage of recovered energy from waste heat will be limited.

7

Plant Cost Optimization - CAPEX

To optimize module fabrication and site construction cost,• Minimize large bore piping quantity• Minimize height of pipe rack and steel structure• Minimize site integration work volume (carry over work), particularly

• Electrical and instrument cable installation and termination• Piping/equipment cold insulation and painting• Minimize hydrostatic test of pipe loops at site

8

Modularization for on-shore LNG

• Modularization of on-shore LNG plant is different from off-shore application. Recognize“particulars”

• Incorporate uniqueness of module approach from early stage of project, e.g. concept andprocess design phase.

9

Module experience of LNG project to dateProject Country Liquefactio

n ProcessCapacity

MTPA Trains Operator Status

NWS #5 Australia C3MR 4.2 1 Woodside In operation

Pluto Australia C3MR 4.9 1 Woodside In operation

Gorgon Australia C3MR 5.2 3 Chevron In operation

Ichthys Australia C3MR 4.5 2 INPEX Under construction

Yamal Russia C3MR 5.5 3 Novatek In operation

GLNG Australia Cascade 3.5 2 Santos In operation

QCLNG Australia Cascade 4.3 2 BG In operation

APLNG Australia Cascade 4.5 2 CoP In operation

Wheatstone Australia Cascade 4.5 2 Chevron Under construction

PFLNG1 Malaysia Nitrogen 1.2 1 Petronas In operation

PFLNG2 Malaysia Nitrogen 1.5 1 Petronas Under construction

Prelude Australia Shell DMR 3.6 1 Shell Under construction

Coral Mozambique APCI DMR 3.3 1 ENI Just started

10

Issues

Cost over run and schedule delay

Cost over run and schedule delay

Cost over run and schedule delay

Cost over run and schedule delay

Cost over run and schedule delay

Onshore

Offshore

Modularization – Key points

• Modularize large bore piping around refrigerant compressors. Don’t use “stick built” of gas turbines and compressors.

• Re-visit gas turbine driver model to facilitate modularization

• Review module transportation route and sequence of erection

• Review electrical cable route from substation to large motors

• Ensure proactive project management of module fabrication at yard

• Ensure flexibility of ocean transportation schedule

11

• Current design assumes stick built of refrigerant compressor/gas turbine driver, not module.Majority of large bore piping installation & test will also stick built accordingly.

• Optimize layout to minimize large bore piping quantity.• Provide maintenance access, particularly for air cooled exchanger bundles.• Consider cable route from substation to large motors – Location of substations• Consider module transportation route and sequence• To minimize adverse impact due to hot air re-circulation,

• Evaluate distance between LNG trains• Evaluate direction of LNG trains to lined up with prevailing wind.• Evaluate gap between main piperack and tall equipment modules and columns

LNG train layout - Observation12

MR 1st stage suction line

Optimize large bore, cryogenic piping – MR circuit13

C3 1st stage suction line

Optimize large bore, cryogenic piping – Propanecircuit

14

Optimize large bore, cryogenic piping – MR circuit15

Pipe rack will be necessary forsuction/discharge piping, isolationvalves, and safety relief valves.

Crane access will be difficultfor these air cooler bundles.

GTP layout - Observation• Recommend grouping together all TG compressors, CO2 compressors and power

generators respectively considering operation and sparing philosophy• Recommend not to rotate 1st train only. Use same design and direction for all trains.• Make sure if AGRU absorber can be integrated in module. Absorber is the heaviest vessel

in LNG plant.

16

GTP Site Layout17

CO2 Comp 3

CO2 Comp 2

CO2 Comp 1

TG Comp2

TG Comp3

TG Comp1

Power Gen Power Gen Power Gen

AGRU2

AGRU3

AGRU1

GTP Site Layout – Recommended Concept18

CO2Comp 2

CO2Comp 3

CO2Comp 1

TG Comp2

TG Comp1

TG Comp3

PowerGen

PowerGen

PowerGen

Dehyd.1

Dehyd.2

Dehyd.3

AGRU 3 AGRU 2 AGRU 1

• RecommendgroupingtogetherallTGcompressors,CO2compressorsandpowergeneratorsrespec;velyconsideringopera;onandsparingphilosophy

How hot air recirculation occurs?

Hot Air Recirculation will be problematic when• Ambient temperature is high, and• Wind direction is perpendicular to ACHE bank (cross

wind), and• Wind speed is high, say above 3 m/sec.

Propane condenser and sub-cooler will be mostseriously impacted.

19

Prevailing Wind Direction20

PrevailingWind

WholeYear

Whole Year Whole Year

21Prevailing Wind

Whole Year

Monthly Prevailing Wind Direction - Nikiski NKTA2 Buoy22

From May to August

Prevailing wind - May to August and Afternoon only23

Prevailingwind

directionduringsummer

Prevailingwind

directionduringsummer

24

Too close each other. Combinethese two banks and line up

parallel to prevailing wind

Too close each other. Combinethese two banks and line up

parallel to prevailing wind

Compressor shelter should notbe taller than ACHE banks

Ensure sufficient air flow pathbehind tall columns and structures.

Increase gap between mainpiperack and tall equipment and

module

Prevailingwind

directionduringsummer

LNG Train Layout – Potential Issues

Maintenance Access25

How to access tothese ACHE?

TheseACHEshouldnotbelocatedhereconsideringHAR

Crane

Thank you

Akiyama LNG Technology Consultant Office

akiyama.keiji@gmail.com

26