THE NEXT GENERATION OF LNG PLANTS

LA NOUVELLE GENERATION DES USINES DE LIQUEFACTION

Murtaza Khakoo
LNG Technology Project Manager
BP Exploration
Chertsey Road, Sunbury
Middlesex TW16 7LN, UK
Beatrice Fischer
Senior Process Engineer
Institut Francais du Petrole (IFP)
1 et 4 avenue de Bois-Preau
92852 Rueil-Malmaison, France
Jean-Christophe Raillard
Project Manager
Gaz de France (GdF)
Roche Maurice B.P. 12417
44024 Nantes, France

ABSTRACT
Trinidad and Tobagos Atlantic LNG plant has demonstrated how an innovative
approach to project implementation can achieve lower capital costs and a reduction in the
time from conception to start-up. As a result, it is now the industry benchmark on both
counts despite using previous generation LNG technology.
To meet the growing pressures in the LNG market over the next decade, further
substantial reductions in full chain LNG costs will be required. With the liquefaction unit
comprising nearly 50% of LNG plant cost, this is an obvious target for further cost
reduction. Improvements in liquefaction process efficiency offered by a new technology
and additional cost reduction innovations can lead to an overall unit cost reduction of up
to 25% for the next generation of LNG plants.
With this objective, a collaborative alliance and industrial pre-project development
program has been undertaken to capture innovations and cost reductions while
confirming the expected benefits of a new LNG technology based on two different but
complementary processes developed by Gaz de France (GdF) and IFP. These have been
rigorously and critically investigated and objectively compared with current established
processes. The scope of the program, conducted with the participation of engineering
companies and major equipment fabricators, has included the development of
engineering definitions and cost estimates to demonstrate clearly the benefits of these
processes. The program has shown that it is possible to design and construct a unit that
can produce from 2 to 5 million tonnes per annum using single or dual Frame 7EA gas
turbine drivers.
This paper presents the significant findings and comparative conclusions of this
collaborative work, addresses the key issues of innovation, efficiency and operability and
discusses the potential commercial impact and timing of the project implementation of
the Next Generation of LNG plants.

PS2-3.1
RESUME
La ralisation de lusine de liqufaction de Trinidad et Tobago, dans le cadre du
projet Atlantic LNG, a permis de montrer comment une dmarche innovante peut
conduire une rduction des cots dinvestissement ainsi que de la dure du temps de
construction. Cette usine constitue ainsi une rfrence pour lindustrie sur ces deux plans,
bien que base sur un procd de gnration antrieure aux procds qui peuvent tre
conus prsent.
Pour faire face la demande croissante de GNL prvue au cours des dix prochaines
annes, des rductions substantielles de cot sont requises sur lensemble de la chane
GNL. Lunit de liqufaction, qui reprsente prs de 50 % des cots dinvestissement,
doit faire lobjet dune attention particulire. Les gains defficacit rendus possibles par
la mise en uvre de nouveaux procds ainsi que de nouvelles innovations techniques
permettent denvisager une rduction supplmentaire de 25 % sur le cot du GNL produit
par la nouvelle gnration dusines de liqufaction.
Avec cet objectif en vue, un programme de dveloppement a t entrepris sur la base
dun pr-projet labor conjointement en vue de confirmer les gains rsultant de la mise
en uvre de deux procds diffrents mais complmentaires dvelopps par Gaz de
France et IFP. Ceux-ci ont t examins selon une procdure rigoureuse, visant tablir
une comparaison objective avec les procds couramment utiliss lheure actuelle.
Dans ce but, le programme de travail, men avec la participation de socits dingnierie
et de fournisseurs dquipements, a pris en compte les valuations ncessaires pour
disposer des conclusions conomiques escomptes. Ce programme a montr quil est
possible de concevoir et raliser une unit produisant de 2 5 millions de tonnes par an
utilisant une seule ou deux turbines identiques de type "Frame 7".
La prsentation rsume les principaux rsultats et les conclusions en termes de
comparaison de ce travail conjoint, prcise les facteurs cls de russite sur le plan de
linnovation, des performances et de loprabilit et analyse limpact commercial
potentiel ainsi que les perspectives de mise en uvre de cette nouvelle gnration
dunits de liqufaction.

PS2-3.2
 THE NEXT GENERATION OF LNG PLANTS
INTRODUCTION
Gas will continue to be the fuel of choice providing it can compete on delivered
prices compared to alternatives like diesel and coal. A major share of this gas is supplied
by long distance pipelines and LNG. LNG has the advantage of no geographical or
political barriers, but to increase its market share, a significant reduction in cost has to be
achieved in order to deliver low cost LNG for any scale, from small (~0.5mtpa) to large
(~5mtpa). This will lead to a rapid growth in the international LNG trade and to the
possibility of new grass-root projects with shorter transport distance.
With the liquefaction unit accounting for nearly 50% of LNG plant cost, this is an
obvious target for further cost reduction. The challenge of this alliance project was to
bring the investment cost down without compromising operability, safety and reliability -
all of which are considered essential. The technologies which are selected therefore have
to rely upon simple and robust concepts which are easy to operate. The equipment
incorporated should also be inherently safe, well-proven and widely available.
Two main concepts have been considered in the development of the CII (Integral
Incorporated Cascade) Technologies :
CII-1 for smaller capacity trains, in the range of 1 to 2mtpa of LNG, requiring lower
investment and better adapted for some quick start projects and
CII-2 for large-size liquefaction trains producing 4mtpa of LNG or more to benefit
from scale effects.
The innovative and efficient liquefaction processes described in this paper result in
higher LNG production for a given unit of power. When combined with cost reductions
from state-of-the-art rotating and heat transfer equipment and appropriately correct
engineering design, there is a significant reduction in the LNG production unit cost.

THE CHALLENGE
Trinidad and Tobago

The Atlantic LNG plant is the first grassroots LNG export project in the Western
Hemisphere since 1969 [1]. The plant began production in 1999, less than 7 years after
project inception. The plant has now exported in excess of 100 cargos of LNG and is
currently undergoing expansion with the addition of two almost identical trains.
Prior to Atlantic LNGs first train in Trinidad, the capital costs of greenfield LNG
facilities lay in the range of 300 to 400 US$/tpa of LNG production. Trinidad has set a
new benchmark at just over 200 US$/tpa. The addition of Trains 2 and 3 currently being
undertaken is projected to set an even lower benchmark in LNG plant cost at around 150
US$/tpa.
The breakthrough in Trinidad was achieved by challenging the use of traditional LNG
technology and by using unique project management, contract strategy and execution for
an LNG facility. The plant which uses the Phillips Cascade system with 6 GE Frame 5
gas turbines for its drivers and an air cooling system, maintains a high level of reliability
and flexibility.

PS2-3.3
Targets

With this background of an aggressive new benchmark in execution and cost set by
the Trinidad LNG project, the target for the current BP/IFP/Gaz de France project was to
reduce the unit cost of LNG production even further through:
Increased LNG output: This is achieved in the CII processes through a higher
efficiency liquefaction cycle which incorporates cascades of dual mixed refrigerants
circuits and through the use of specific equipment like plate-fin exchangers. Cycle
development and optimisation targeted in excess of 15% additional LNG production
for a given power compared to conventional processes.

Cost reductions: With compressors, gas turbines and exchangers representing

between 70 and 80 % of the direct cost of a liquefaction unit, cost reductions through
technical improvements and optimal utilisation of these and other plant items were
targeted. The pre-project development team working in conjunction with inputs from
the engineering companies and the equipment vendors incorporated many cost
reductions into the CII liquefaction and LNG plant design.

A critical factor in the optimisation and cost reduction effort was to ensure that
operability, reliability and safety are preserved. Review and value improvement sessions
were incorporated at key stages of the project at completion of process design and
during operability assessment.

Process Benchmarking

The key factors in the validation of the benefit from the new LNG process is to ensure
that proper benchmarks of both the achieved process efficiency and the resultant LNG
plant costs are made.
Efficiency Benchmark: This relates to the theoretical power required to produce a
unit of LNG production and is frequently the most improperly benchmarked number
in the industry. To make proper comparison requires comparable designs to be
produced taking into consideration many factors including : sink temperatures (air or
water-cooled); cold box outlet temperature (sub-cooled or warm into tanks);
economic heat exchanger LMTD and pinch temperatures; driver power including all
derating factors, margins and compressor efficiency.

Cost Benchmark: This is perhaps the hardest to achieve and can be facilitated by at
least two approaches :
Comparison of theoretical costs produced from a combination of factored costs
for the liquefaction unit including sections of the plant affected by the specific
process technology,
Comparing a detailed cost estimate for the whole LNG plant including all
pretreating units, export systems etc. with an actual plant cost.

Both approaches have been adopted in the BP/IFP/Gaz de France project - the first
for comparison of liquefaction technologies and the second for comparison with Trinidad
project information. To ensure congruence, the Trinidad Train 1 design was used as the
Case Study with much of the actual plant parameters outside the liquefaction unit and the

PS2-3.4
scope of the engineering maintained as per actual project to facilitate a comparison after
adjustment to capacity differences.

THE PROJECT
CII Technology

The CII concept has been aimed at providing operators with liquefaction processes
that combine the advantages of simplicity and reliability together with a high efficiency
in order to maximize LNG output.
This is achieved by exploiting the full improvement potential resulting from optimal
use of mixed refrigerants and compact designs incorporating plate-fin heat exchangers.
The CII-1 version uses a single cascade, incorporating two sub-cascades. A low
specific power consumption is obtained by the fractionation of the single refrigerant into
optimised heavy and light mixtures [2] [3][5].
The CII-2 version is a dual mixed refrigerant process incorporating specific patented
features for increasing the simplicity and at the same time the efficiency of the system
[4][5]. The CII-2 process involves two refrigeration cycles of equivalent power, using
fully condensed mixed refrigerants.

Scope

A comprehensive scope of work was implemented to develop the CII liquefaction

unit design and engineering, to enable cost comparisons, to evaluate specific process
characteristics and to demonstrate the performance, operability and benefits.
The Trinidad Train 1 design parameters together with the use of Frame 7 gas turbine
drives (one for Gaz de France CII/1 and two for IFP CII/2 process) were the only givens
in the design premise. The development of an optimised process design formed a key part
of the study and delivered a comprehensive process data book incorporating option
evaluations and all the normal process engineering information.
These formed the basis for evaluation of sensitivities to site conditions (daily
temperature variations, pressure), feed composition variation and mixed refrigerant
composition drift. In addition, piping and instrument diagrams (P&ID) were developed to
assess operability and maintenance aspects.
For key items of equipment, such as the machinery (compressors, turbines) and heat
exchangers, specifications were developed in consultation with equipment vendors in
particular the cold box design where detailed design incorporating 3-D layout and pipe
stressing of significant lines were made. A subcontract to an engineering company
developed detailed layouts and cost estimates.
The final step was to generate generic designs of competing processes and develop
equipment and costs for comparison with the new technologies.

Approach and Organisation

The project has been operated with an integrated Core Team involving BP as an
Operator and IFP together with Gaz de France as technology providers. An Extended

PS2-3.5
Team was formed with vendors and engineering companies to provide an optimised and
detailed design information for the liquefaction units.
These vendors included providers of plate-fin heat exchangers (Chart Marston /
Nordon Cryogenie), of rotating equipment (Nuovo Pignone and Sulzer/Elliott) and also
liquid turbine and air-cooler suppliers.
A flexible and proactive approach to communications, periodic review meetings and
targeted value improvements steps was facilitated by design to ensure innovations from
all contributors were captured in the study.

THE RESULTS
CII-1 Process

The CII-1 LNG process is a fully integrated cascade process, designed with an
innovative arrangement of proven and efficient technologies. Under the Trinidad site
conditions, the annual capacity delivered by a single LNG train is 2mtpa. The process
flow scheme (Figure 1) incorporates the following main features:

Simple compression line:

The single refrigerant is compressed in two compressors casings: one axial type with
a suction flow rate of 250 000 m3/h (actual) and a two stage, back-to-back centrifugal
compressor for the mid and high pressure duties. This simple, ambient temperature
compression line is driven by a single Fr 7EA gas turbine.

Simple cryogenic heat exchange line:

The integrated heat exchanger line, shown in Figure 2, is made up of brazed
aluminium plate fin heat exchangers (PFHE) which are more cost effective than
alternatives in similar duties. One of the innovative features of CII-1 is its two butt-
welded PFHE cores, forming a dual-core, inside which natural gas is pre-cooled,
liquefied and sub-cooled. Five dual-cores are parallel-mounted inside each of four
identical and modular cold boxes. These together with an additional cold box for the
PFHE interconnecting pipework permits a high degree of prefabrication which reduces
onsite work and the schedule for assembly and installation of the main heat exchanger.
The cross section of the cold boxes (hence the footprint) are also minimised by selecting
a PFHE configuration which maximises the cold box height within transportation limit.
Simple process control:
The control of the process is defined to automatically track the best energy efficiency
conditions when changes in feed composition, pressure, flow rate or ambient condition
vary without specific refrigerant make-up or venting.
The CII-1 refrigerant is a mixture of five components: C5, C4, C2, C1 and nitrogen.
The refrigerating duty is achieved by expansion of three different streams at three
temperature levels (-30C, -110C and 160C). These three flow rates are automatically
set by the system to achieve the required cold duty of the corresponding heat exchange
zone. Consequently, the composition of the circulating MR is automatically optimised
for the cooling duty required.

PS2-3.6
 DRY FEED

Frame 7

Scrubber

MR
Fractionation

MCHEL
LNG to storage

Figure 1. CII-1 Process Flow Scheme.

This auto-internal loop adjustment is performed by the transfer of liquid hold-up

between the four vessels of the CII-1 process, which contain a liquid buffer of various
volatilities. Three of these four vessels are operated with floating levels. The positive
or negative difference between the actual levels and the reference levels enables direct
calculation, by software, of the quantities of C5, C4, and/or C2 that should be injected
into the loop to compensate for leaks.
The operating stability of the MR fractionation column, which contains less than 4
meters of packing, is maintained by the control of the temperature of the reflux drum.
Efficiency:
The performance of the CII-1 process has been compared with a typical Single Mixed
Refrigerant (SMR) process ensuring similarity in all parameters that impact the
efficiency.
The reference SMR scheme considered provides all the required cooling duty by a
single expansion of the mixed refrigerant at the cold-end of the cryogenic plate-fin heat
exchange line [6]. The SMR is compressed in an axial and a centrifugal casing, with
partial condensation at the inter-stage ambient chilling, and is expanded through a liquid
expander.
Comparative process design work has shown that the controlled fractionation of the
mixed refrigerant in the CII-1 process reduces the specific power consumption by
approximately 10%. Also, the fractionation of the CII-1 MR removes all the C5 from the
high pressure, light refrigerant, which flows to the coldest part of the exchange line and
avoids potential C5 freeze-out. Consequently the LNG can be sub-cooled to a greater

PS2-3.7
extent and the end-flash is limited to the LNG tank boil-off thereby avoiding a large,
costly end-flash compression line.

Figure 2. CII-1 Integrated Heat Exchanger Line

CII-2 Process

The CII-2 process incorporates two multi-component refrigerant circuits and in this
particular design, each driven by a Fr 7EA gas turbine. Specific features of the CII/2
process are :
A balanced power on the two cycles : makes it possible to use two identical gas
turbines, getting all the positive features of the cascade process with much less
rotating equipment. It avoids the difficulty, encountered with the C3/MR cycle, of
having to transmit driver power from the precooling to the cryogenic cycle or
reversely the compression load.
No integrated cascade : this is the main novelty of the process. As the mixed
refrigerant of the second cycle is fully condensed, the two cycles become very similar
and the two mixed refrigerants can be used in a similar way to the pure refrigerants
used in the cascade process. As a consequence, the design of the heat-exchange line is
simpler, there is no phase separation (no separation drum required) and the regulation
becomes easier. Thus, changing the flow-rate in any branch does not change the
composition in any other part of the system, as the mixture composition is the same
everywhere. With an integrated cascade requiring a phase separation, the fluid
mixture composition varies all along the cycle.
Compact and modular heat-exchange line : the CII-2 process has also been defined
to make the best use of plate-fin heat-exchangers and to simplify their design. A
single heat exchange line is used to cool gas from ambient temperature down to
cryogenic temperatures.

Figure 3 presents the process flow schematic specific for the Trinidad Case Study.

PS2-3.8
 DRY FEED

1st Frame 7 -
prerefrigeration
cycle

C2+ To
C2/C3+ fract. 2nd Frame 7 -
Demethanizer cryogenic cycle
Main
exchange line

LNG to end
flash system Liquid turbines

Figure 3. Simplified Trinidad CII-2 Process Flow Scheme

Compression Line
The two compression lines are each driven by a Frame 7. The pre-refrigeration
compression line consists of one centrifugal compressor with two lateral entries. The
cryogenic compression line is composed of one axial compressor followed by a
centrifugal compressor with one intermediate inter-stage cooling step.

Heat Exchanger Line

The heat-exchange line comprises 4 cold boxes, with two cold boxes located on each side
of the distribution pipes (see Figure 4). To limit the numbers of two-phase distribution
devices, the concept of the process is such that all fluids entering the main exchange line,
except the outlets of Joule-Thomson valves, are in a single phase - vapour or liquid. The
first mixed refrigerant (MR1) is sub-cooled at the inlet of the main exchange line,
whereas the second mixed refrigerant (MR2) is in vapour phase at the inlet of the first
core, and in liquid phase at the inlet of the second.

Efficiency
The capacity obtained with an end flash scheme is 4.5mtpa. Comparison with a standard
propane cooled mixed refrigerant (C3-MR) process, with equivalent assumptions (end
flash, two liquid turbines, exchanger pinch/LMTD etc) has been undertaken. To use the
full power of the two Frame 7 gas turbines, the C3-MR process has to balance the
precooling and the cryogenic cycle compression requirements to available driver powers
the assessment of impact on operability (start-up, transients etc) was excluded from scope
of this study.

PS2-3.9
 Figure 4. Overall Layout of the Main Exchange Line

Despite this assumption, the LNG production capacity obtained with the two Frame 7
gas turbines is lower by approximately 10% compared to that of the CII-2 process,
although the difference is expected to be higher if the two processes are compared from
their optimal design points, particularly with respect to the main heat exchanger
parameters.
From the investment cost standpoint, significant savings result from the use of the
plate-fin heat-exchange line. The pressure drops and stream arrangement in the CII-2
process are optimised so as to have no lost volume in the PFHE. A good exchange
coefficient is thus obtained so that the overall core volume is very low, despite a large
heat transfer area. The second important saving point is the air coolers, whose area and
cost are also very significantly reduced from condensing a multi-component refrigerant
compared to the single component propane in C3-MR.
The above, coupled with other cost reduction ideas identified in this and previous
studies [7], and currently not used in the Trinidad LNG plant, lead to a projected capital
cost reduction of 10-15 % for the process units. Taking into account the increased
capacity, this results in a overall reduction of about 20-25 % per tonne of LNG produced.

Influence of Site Conditions

As the main study was based on an actual and a single design point, it was important
to assess the response and performance of the process technology to varied conditions,
namely: different site temperature, feed composition and pressure.
The influence of each of the parameters has therefore been evaluated separately,
while keeping all other parameters constant. The key findings discussed below show that
both processes can be designed to accept a variety of feed gases, and the response to
process condition changes are not different to any of the established processes.
Site Temperature
Two extreme air temperatures: 10C and 45C were evaluated in the design mode,
while keeping the Trinidad gas composition and pressure constant. Two advantages are
noticed in going to lower ambient temperatures : an increase in available turbine power

PS2-3.10
and lower air cooler outlet temperatures which combine to give a large benefit,
compared to the 26C base case.
The use of sea water coolers has also been investigated whilst maintaining the same
gas turbine power (no change in ambient). This gives an increase in LNG capacity due to
lower condensing pressure of the refrigerant but is not as pronounced in Trinidad because
the air and sea water temperature are similar.

Table 1. Summary of CII sensitivities to temperatures

Case Base Case Cold climate Warm climate Medium cooler

Ambient cooler Air Air Air Sea water
cooler temperature 26C 10C 45C 25C
CII-1 / CII-2 CII-1 / CII-2 CII-1 / CII-2 CII-1 / CII-2
Specific consumption, % 100 / 100 87 / 91 117 / 117 95 / 97
Available Driver Power, % 100 / 100(1) 110 / 110(1) 88 / 87 (1) 100 / 100
LNG capacity, % 100 / 100 127 / 122 76 / 75 105 / 104

Note 1: Includes fuel gas compressor for CII-2 case

Pressure
A higher feed gas pressure (55 bar a instead of 42 bar a) gives a higher capacity due
to the reduction of the required liquefaction duty and to the transfer of energetic losses
from the LNG sub-cooling heat-exchange zone to the natural gas condensing zone (see
Table 2).
Feed Composition
The ability to design for other feedstocks was made to confirm process flexibility.
Two feed compositions were considered :
Higher Nitrogen Content : Since nitrogen content in Trinidad gas is very low, a
hypothetical design based on 4 % nitrogen was made which required the addition of a
nitrogen rejection tower to both processes.
Rich Gas Case : A hypothetical LPG case with 21% C2+ in the feed (7% in Trinidad)
was considered and required minimum changes to process scheme. Compared to the
base case, the LNG capacity was decreased, but the overall liquid outlet capacity was
increased.

Table 2. CII Sensitivity to Press & Feed Compositions

Case Base Case High pressure N2 rich LPG rich

NG feed pressure 42 bar 55 bar 42 bar 42 bar
+
NG composition (N2 /C2 ) <0.1% / 6.7% <0.1% / 6.7% 4 % / 6.6% <0.1% / 21%

CII-1 / CII-2 CII-1 / CII-2 CII-1 / CII-2 CII-1 / CII-2

Specific consumption, % 100 / 100 88 / 93 100 / 105 111 / 127
LNG capacity, % 100 / 100 113 / 107 108 (1) / 98 93 / 78
C2 + LPG capacity 4 / 5 4 /5 5 /5 38 / 42

PS2-3.11
Note 1: For CII-1, in the N2 rich case, a flash gas compressor must be introduced in order to
produce the high pressure fuel-gas from the overhead product of the nitrogen removal tower.
This additional compression power leads to an increase in the LNG production capacity.

For CII-2, as an end-flash scheme was already used in the base case, the capacity
obtained with the high nitrogen case is very similar.
These studies have confirmed the robustness of the CII technologies and the ability to
cope with a range of feed gas compositions and conditions.

Operability

An important aspect in adopting a new process technology is understanding the

operability, reliability/availability and flexibility of the process. To achieve this, control
philosophies, P&I diagrams and operating procedures for start-up, shut-down, warm-up,
turndown etc. were developed by IFP/Gaz de France. A P&I Review session was then
convened to assess the control philosophy and operational procedures, and ensure that
operational upsets and potential hazards were adequately catered for in the design.
A reliability review showed that most of the major equipment items (plate fin
exchanger, compressors, vessels etc) are not different to those in other gas plants and
would have similar reliability. Availability was primarily governed by the gas turbine
selected and in this respect, the CII process technologies are therefore similar to existing
LNG plants.
The operational flexibility to cater for day/night temperature variations, as well as the
effect of leaks from the mixed refrigerant circuit have been checked in rating mode:
For day/night variation, the process temperatures have been determined using the
designed surface areas of the cryogenic and ambient heat exchangers. For both CII-1
and CII-2, during the night and the day, the actual capacity changes by about 4 % of
the average daily capacity this is therefore the prize for any optimisation package
tracking the daily ambient temperature variation.
The effect of mixed refrigerant drift was also checked by simulation and the deficit in
a major component was noted to have negligible effects on the resulting capacity.

KEY BENEFITS
Efficiency

With the same gas turbine, both the CII-1 and CII-2 achieve significantly higher LNG
output than their respective competing process. The improved efficiency of the new
liquefaction processes has been demonstrated.

Compact Layout

Both CII-1 and CII-2 use a plate-fin heat-exchange line that is assembled into four
cold boxes and laid adjacent to the gas turbine driver-compressor sets with aircoolers
installed on the compressor housing. This compact layout leads to significant reduction in
low temperature, large diameter pipework giving significant cost savings.

PS2-3.12
Costs

Comparative factored costs of the CII processes with corresponding established

processes show the possibility of combining a lower cost with an increased in LNG
production.
At the time of writing this paper, a detailed cost estimate based on a Trinidad location
is being prepared using on major equipment costing, construction factors adjusted to take
into account the compact layout (from 3D model), overall plot layout, utilities, offsites
including storage and export system. The aim is to make comparison with the existing
Trinidad Train 1 data and current indications are that these will show significant
reduction in unit cost within the limitations of the approach used.

Schedules

The critical path of conventional LNG plant projects has been the delivery of
compressor-drive, main heat exchanger and storage / export system. Pre-ordering of
compressors has been previously adopted and shifted the critical path to the main
exchanger. The CII processes employ plate fin heat exchangers with many potential
suppliers for the large number of cores thus removing this item as a constraint in project
schedule. New ideas are being pursued to target the next schedule constraints
(storage/export systems), and the overall reduction in schedule will undoubtedly result in
significant cost reductions.

Project Strategy

The philosophy adopted from the outset is to ensure that the process technology has
the ability to use multi-sourced equipment. Also direct link of the CII technologies to any
specific engineering contractors has been avoided to maximise leverage in the
engineering, procurement and construction phases. This ensures that potential licensees
can maximise the potential saving possible from a favourable contract strategy.

OVERALL CONCLUSIONS
The study results have confirmed that the CII processes have potential for:
improvement in process efficiency and hence more LNG production for a given
driver configuration
use of standardised and multi-sourced process equipment
incorporate majority of cost reduction ideas that have been previously studied and
implemented with minimal impact to the design and operation of current LNG plants
leverage to reduce cost from equipment supply, engineering and project schedule

This now gives the projects partners increased confidence in the CII technologies to
proceed with the industrialization phase, involving both CII-1 and CII-2 processes. The
processes can be adapted to operators requirements, and as they involve only well-
proven equipment, they can be implemented rapidly to commercial projects.
Having completed the evaluation, BP will now consider putting forward the CII
technologies to their current and emerging projects. The intention is to get the projects
buy-in to take up to FEED level of definition, in competition with established

PS2-3.13
technologies, before opening to a number of contractors for EPC of the plant with the
least LNG unit cost.
BP believe that through application of innovative technologies for liquefaction
coupled with equally innovative project strategies, it will be able to deliver LNG projects
at even lower cost than the current Trinidad benchmark.

REFERENCES CITED
(1) Bob Williams
Upstart LNG Project
Oil & Gas Journal, December 16, 1996

(2) Duremberg C., Flesch E., Raillard J.C.

Cost Reduction of the LNG chain: Development of a New Liquefaction Process
Eurogas 1996, Trondheim, Norway, June 3-5, 1996

(3) Flesch E., Raillard J.C.

CII Liquefaction Process: 2 cascades into 1
LNG12, Perth, Australia, May 4-7, 1998 - Session 3, Paper 3-4

(4) Streicher C., Rojey A., Fischer B., Chabrelie M.F., Maisonnier G.
New Options for Natural Gas Liquefaction
Gastech 1998, Dubai, November 29-December 2 - Session 10, Paper 10-2

(5) Flesch E., Raillard J.C., Burin des Roziers T., Streicher C., Rojey A. and Fischer B.
New Trends in LNG Process Design
European GPA meeting, London, February 19th, 1999

(6) K.J. Vink, R. Klein Nagelvoort

Comparison of Baseload Liquefaction Processes
LNG12, Perth, Australia, May 4-7, 1998 - Session 3, Paper 3-6

(7) P.J. Nutall, S. Takami

Small LNG Plants: Overcoming the Economies of Scale
Gastech 1998, Dubai, November 29-December 2 - Session 10, Paper 10-1

PS2-3.14