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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

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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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
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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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

Safety, Excellence, Innovation, Teamwork, Transparency

Inground

Cryogenic
cavern

3rd of December, 2012. Rotterdam

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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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)

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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.

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


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
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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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?


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
Main breakthrough advantages of the Membrane Full

Integrity System
Big scale configuration : One Ultra Large scale in place of
two conventional capacities
Small scale configuration : Storing optimization
Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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
Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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
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Rectangular element
3rd of December, 2012. Rotterdam

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.

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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

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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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!

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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

Small scale configuration : Storing optimization


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

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

Small scale configuration : Storing optimization

Volume saving repartition

Extra LNG volume is between 10% to more than 35%


Significant capacity difference for small & mid-scale tanks
Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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


Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

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
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3rd of December, 2012. Rotterdam

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
Safety, Excellence, Innovation, Teamwork, Transparency

Definitely more competiton


3rd of December, 2012. Rotterdam

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!
Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam

Thank You
for your
Attention
aezzarhouni@gtt.fr

+33 6 19 40 33 49

Safety, Excellence, Innovation, Teamwork, Transparency

3rd of December, 2012. Rotterdam