Opportunities in Capex Saving For Onshore LNG Storage Tanks: 7 Annual LNG Tech Global Summit

7th Annual LNG Tech Global Summit
Opportunities in Capex Saving For Onshore LNG

Storage Tanks
Adnan Ezzarhouni
Business Development Deputy Manager
This document contains information resulting from testing, experience and know-how of GTT, which are protected under the legal regime of undisclosed information and trade
secret (notably TRIPS Art. 39) and under Copyright law. This document is strictly confidential and the exclusive property of GTT. It cannot be copied, used, modified, adapted,
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Safety, Excellence, Innovation, Teamwork, Transparency
3rd of December, 2012. Rotterdam
Agenda
Brief introduction of GTT

Conventional Nickel-tank type Technologies: Typical
features and Technical challenges
Different approach of increasing the capacity
Key success factors of the Membrane Full Integrity System
Large scale configuration : One Ultra Large scale in place of

two conventional capacities
Small scale configuration : optimizing the storage capacity
Agenda


GTT in brief
An engineering company with more than 50 years of
experience in the design of the Membrane Cargo
Containment Systems
Independent company with
strong shareholders
A 370 people company constantly working on on-going
projects and new developments, aiming at proposing
technologies for the development of the LNG market:
NO96 and MarkIII are the leading systems for LNGCs
and offshore units
GST system for on-shore tanks
PLUTO II subsea cryogenic pipeline
Agenda


Land storage tank options

Full Integrity storage types (safest designs)
Non-Full Integrity storage types

Single
containment
9%Ni
Full Containment
Double
containment
Largest footprint
Easiest and fastest to built
In case of failure, LNG is

contained by a dik
In case of failure, LNG is

contained by a bund wall
Membrane
Full Integrity
Mostly used nowadays
Most compact & economical

design
In case of failure, both LNG

and NG are contained by
the concrete walls
In case of failure, both LNG

and NG are contained by the
concrete walls
Several configurations can be envisioned

Membrane tanks and 9%Ni are the safest designs
Above ground is the most economical configuration
Typical configurations
Above-ground Semi-buried
Inground
Cryogenic
cavern
Single Containment
Large tank spacing

Greater safety distances to public
Larger site area required

Cheaper design but very difficult to
get approval by local authorities as
safer design are available
Double Containment
Closer tank spacing
In case of failure, LNG is contained
by a bund wall
Bund wall much closer to primary

container
Not cost advantage & less safer than
Full integrity systems (9%Ni &
Membrane)
9%Ni Full Containment

Full Integrity system :No bund wall
required
In case of failure, both LNG and NG
are contained by the concrete walls
(safest design)
Mostly used nowadays
Membrane Full Integrity

Full Integrity system :No bund wall
required
In case of failure, both LNG and NG
are contained by the concrete walls
(safest design)
Very popular for inground and high
seismic areas.
Safest designs: What are the technical challenges?
Tank size is limited by thickness of 9% Ni steel plate

Not well adapted for harsh seismic environment
Not adapted for fast track solution
Room for innovation is very limited; the technology
has reached its maturity phase
9%Ni Full Containment
No limitation of capacity
Well adapted for harsh seismic environment
Significant feedback from LNG tanks and Huge
feedback from Membrane LNG carrier in more
severe conditions
Cost & Schedule saver
Membrane Full Integrity
No technical challenges for Membrane ???

So why no Membrane tanks have been recently built??
Answer at the end of the presentation
Agenda


What should be the tank proper capacity?
Facts:
Conventional LNG terminals are considering 160K LNG Tanks capacity

This is suitable for 147K LNG carriers.
But
LNG carriers size is increasing:
New range of conventional LNG carriers: between 155K to 170K

31 LNGC of Qflex type: (210K-217K)
14 LNGC of Qmax type: 266K
2 Q-Max and 2 Q-Flex vessels
WHY NOT INCREASING THE SIZE OF LNG STORAGE TANKS?

Agenda

Main breakthrough advantages of the Membrane Full
Integrity System
Big scale configuration : One Ultra Large scale in place of
Small scale configuration : Storing optimization
GST Membrane : A Safe Concept

Types of containment systems for LNG storage
as per EN 14620:
Highest safety tank type
9%Ni
Full Containment
GST Membrane
Full Integrity
MEMBRANE Full Integrity AND 9%Ni Full Containment types ARE EQUIVALENT
in terms of SAFETY
according to EN 1473 Std, EN 14620 Std, comparative Quantitative Risk Assessments, etc
GST Membrane : A Reliable Concept

SEPARATION OF THE MAIN FUNCTIONS
Tightness function :
Stainless steel membrane
Structural function :
Carbon steel liner
Concrete outer tank
Secondary barrier
Thermal function :
Insulating panels
Glass wool on suspended deck
The structural, thermal and tightness functions are

separated
Individual testing & Optimization of each function
Limits the risk of a simultaneous failure: high safety level
GST Membrane : A Very Flexible Technology
ABOVE GROUND TANK
IN-GROUND TANK
(14 in-service & 2 under construction)
(19 in-service)
CRYOGENIC CAVERN
Gravity Base Structure (GBS)
1 prototype
Ease of Tank Design with GST Membrane

Tank Design is optimized with this patented innovative arrangement.
With only 2 differently shape elements, 95% of the tanks surface can be covered.
Membrane is suitable to harsh seismic conditions (no need of complicated anchors:
Cost & construction schedule savings)
Membrane is a very flexible design: no theoretical limit to tank capacity.
Top view of the tank bottom

Triangular element
Rectangular element
Ease of Procurement with GST Membrane
Materials are easily available with several suppliers

in Europe and Asia.
With a standardized production, membrane allows
significant procurement cost savings.
Membrane allows to have a faster production time:

around 3 weeks for the main components (based on
a typical 160K).
Most of the components of the membrane
technology can be locally produced.
Ease of Construction with GST Membrane

With membrane, almost all components are prefabricated:
Limited operations on site.
40% less welding time compared to 9% Ni.
Light handling equipment (no crane inside the tank).
High ratio of Local Workmanship
At least 3 to 4 months saving compared to conventional 9%Ni tanks
GST:An Environmental Friendly Solution

3x160,000m 9%Ni type
Vs
3x160,000m GST type
Total 9%Ni
Total GST
Quantity saved
Foot print
33,500m
32,500m
23,500m
10,000m
1000m
Insulation surface
60,000m
60,000m
50,000m
10,000m
-
Dead Stock
39,000m
39,000m
29,000m
10,000m
-
Direct Labor
labor hours
1,400,000h
1,100,000h
900,000h
300,000h
500,000h
Advantages sum-up
No theoretical limit of capacity
Significant higher net volume for given dimensions
Capacity
95% of components are standard

Less than 250T of stainless steel plates
Better adapted to harsh seismic conditions
B.O.R can be adapted to client specification
Ease of
Design
Ease of
Procurement
Not Nickel dependant compared to 9%Ni

Economy of Scale : Same suppliers than Membrane LNG carrier market
Only 3 weeks production for a conventional tank
High ratio of prefabrication
Ease of
Construction
Simpler concrete construction

80% automatic welding and 40% less welding time compared to 9%Ni
Construction is favorable for local workmanship
At least 3 months saved on the erection schedule
Light handling equipments
Ease of Operation &

Maintenance
Cost
Almost No restrictions on cooling down rate (>15C/h)

Faster decommissioning if necessary
No maintenance
Between 10% and 35% of the total cost of the tank saved compared to 9%Ni
Less dependant to Nickel rate and stocks limitation than 9%Ni type
Competition between Membrane EPC contractors are now open
Agenda


Increasing the capacity : One in place of two

12 x 160k 9%Ni
Full Containment
Vs
6 x 320k GST
Full Integrity
12 x 160K
9%Ni FC
6 x 320K
GST FI
Saving
Footprint
231 000 m
134 000 m
97 000 m
(42%)
Dead
stocks
144 000 m3
93 000 m3
51 000 m3
(35%)
Plots of repeating 12 times 160k

tanks is a wasteful concept!
Agenda



Better arrangement of the containment
A higher net volume (in average 10% more)
9% Ni Full Containment
GST Membrane Full Integrity

1500mm height
gain
3m
1.5m
Total saving :
1.6m on diameter
2m on height
contraction
1m
1400mm diameter
gain
0.3m
200mm diameter
gain for a 80m
diameter tank
0.8m
0.3m
500mm height gain
Volume saving repartition
Extra LNG volume is between 10% to more than 35%

Significant capacity difference for small & mid-scale tanks
Basis of design : Tank dimensions (40K)

44m Tank diameter
36m Overall height
Insulation th.350mmBoil off =0.075% per day
Sump well configuration only 500m3 dead stock
Increased prefabrication : only 4 months for
Containment system installation
Cost effective solution easy to build everywhere

Why no recent Membrane tanks have been built?

Unattractive previous Business model
Bouygues Offshore
Technigaz
Gaztransport
Mark
NO
TGZ
1994
Saipem
GTT
Bouygues Offshore
Time scale
Owned all the patents

(ships and land storage)
Exploited ship patents :
NO, Mark & CS technologies
End 2006
2002
SN Technigaz
Exclusive
licensee
Exploited land storage patent:

TGZ technology
GTT re-acquires patent rights for land storage
Development of
GST Technology
End 2009
Standard and non-exclusive License Agreements
Any EPC contractors

and other companies interested
New competition environment!

BEFORE 2009
Official EPC Tender:

2 x 160,000m LNG Tank
9%Ni FC or Membrane FI
EPC 1 :
EPC 2 :
ex:
9%Ni Only
EPC 3 :
9%Ni Only
No competition for Membrane
Now:
EPC 5 :
9%Ni Only
Official EPC Tender:

2 x 160,000m LNG Tank
9%Ni FC or Membrane FI
EPC 2 :
EPC 1 :
ex:
9%Ni and Membrane
EPC 4 :
Membrane only
EPC 3 :
9%Ni and Membrane
9%Ni and Membrane
GST License
Definitely more competiton

Conclusion
Conventional Nickel-Tank types have reach a mature level

Breakthrough technologies such as membrane can bring
competitiveness in cost & schedule
Membrane Full Integrity is addressed on Latest international
Std and considered as one of the safest designs
Membrane can be easily considered for small & big scales
GST Membrane Full Integrity is available as a Standard &
Non-exclusive License since 2009
This year, The number of EPC licensees have been doubled,
from 6 to 12.
GST Membrane Full Integrity could offer 10%-35% cost
saving and 3~6 months schedule saving.
Lets challenge the Membrane Full Integrity system!
Thank You
for your
Attention
aezzarhouni@gtt.fr
+33 6 19 40 33 49

Opportunities in Capex Saving For Onshore LNG Storage Tanks: 7 Annual LNG Tech Global Summit

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7th Annual LNG Tech Global Summit

Opportunities in Capex Saving For Onshore LNG

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

Brief introduction of GTT

Large scale configuration : One Ultra Large scale in place of

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

Brief introduction of GTT

Large scale configuration : One Ultra Large scale in place of

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

3rd of December, 2012. Rotterdam

Brief introduction of GTT

Large scale configuration : One Ultra Large scale in place of

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

Land storage tank options

Non-Full Integrity storage types

In case of failure, LNG is

In case of failure, LNG is

Mostly used nowadays

Most compact & economical

In case of failure, both LNG

In case of failure, both LNG

Several configurations can be envisioned

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

Large tank spacing

Larger site area required

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

Bund wall much closer to primary

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

9%Ni Full Containment

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

Membrane Full Integrity

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

Safest designs: What are the technical challenges?

Tank size is limited by thickness of 9% Ni steel plate

9%Ni Full Containment

Membrane Full Integrity

No technical challenges for Membrane ???

3rd of December, 2012. Rotterdam

Brief introduction of GTT

Large scale configuration : One Ultra Large scale in place of

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

What should be the tank proper capacity?

Conventional LNG terminals are considering 160K LNG Tanks capacity

LNG carriers size is increasing:

New range of conventional LNG carriers: between 155K to 170K

14 LNGC of Qmax type: 266K

2 Q-Max and 2 Q-Flex vessels

WHY NOT INCREASING THE SIZE OF LNG STORAGE TANKS?

3rd of December, 2012. Rotterdam

Brief introduction of GTT

3rd of December, 2012. Rotterdam

GST Membrane : A Safe Concept

Highest safety tank type