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HQmagazine Hydrocarbons Quarterly

LNG 17: Special Edition hq magazine Global awards and recognition 1

Content Managing Editor


Phil Toohey Global Director, Marketing & Research

FLNG Tech Talk: Gas or Steam?

Contributing Editors Jessica Taylor Heather Harrington

Produced by WorleyParsons Marketing & Research Group


Issue 5 LNG 17: Special Issue 2013

Newly recoverable oil and gas is transforming the world’s energy landscape—heralding what has been often described as a shift of tectonic proportion. Barely thinkable as recently as five years ago, the concept of peak oil is being questioned and even refuted—a view which is now starting to take hold outside the industry.

In this issue: p.4 Focus on Zero Harm  ioneering a new safety innovation P technology with Imperial Oil

p.19 Project Report Spotlight on the Singapore LNG and

Pluto LNG projects

p.6 Global Awards p.10 Thought Leaders

HQmagazine Hydrocarbons Quarterly

Meet the WorleyParsons and INTECSEA LNG 17 Team

HQ Magazine Contents

p.14 Pipeline Systems Projects in Queensland’s Burgeoning LNG and CSG Market Learn about our major LNG and CSG pipelines work in Queensland


p.20 From Flare to Fuel: The Case for Mini LNG

WorleyParsons’ David A. Franklin shares an economic solution to wasteful flaring

p.24 Office Intel Check out what’s happening in our

offices around the world

Message from Brian Evans The global LNG market is enjoying remarkable growth in demand and production...

The global LNG market is enjoying remarkable growth in demand and production and is currently being re-calibrated. Industry leaders anticipate a 2020 LNG demand forecast of 405mpta, which implies a robust annual growth of around six per cent. While Australia has been the recent focus of greenfield LNG investment, we see North America receiving the increasing attention in the coming three to five years, followed by East Africa and then the Middle East. WorleyParsons has a proud history in each phase of the extensive LNG market—from industry leadership in pre-feasibility studies that assess optimal investment options through to ground breaking modularization solutions and then on-going plant operation support. WorleyParsons currently provides services on LNG plants that total 40% of global production. Our seven long term contracts service 23 LNG trains. WorleyParsons is excited to help our customers reach further growth and breakthroughs in the projects they undertake. In this issue of HQ Magazine, we explore LNG solutions that maximize asset potential and poise our customers for future LNG success. I hope you enjoy this issue and the 2013 LNG 17 Conference. I encourage you to take advantage of the opportunity to speak with one of our LNG 17 team members found on pages 10-13 and hope you’ll also visit us at future events.”

Brian Evans Managing Director Hydrocarbons

HQ Magazine Message from Brian Evans 3 Brian Evans foreword HQ Magazine


Focus on zero harm “HSE achievement is a reflection of WorleyParsons’ corporate policy that stands for zero harm to people, assets and the environment. These milestones and awards achieved over the last few months reflect safety awareness and ensure that a culture of safety best practice is nurtured at all levels within the company and its contractors.” Paul Cook, Group HSE Director

1 million safe hours acheived for ExxonMobil in Malaysia The EMEPMI (ExxonMobil Exploration & Production Malaysia Incorporated) and PRW (Perunding Ranhill Worley) project held a luncheon in Kuala Lumpur in September 2012 to celebrate one million safe man-hours and the third anniversary of their current five-year EPCM Improve contract.

Qatar customer recognizes WorleyParsons' safety performance excellence ORYX GTL awarded a certificate of excellence to WorleyParsons in Qatar for achieving a world-class safety performance of a zero total recordable incident rate (TRIR) on an Improve brownfield engineering service contract. ORYX GTL facilities are located in the Ras Laffan Industrial Area of northern Qatar and produce GTL diesel and naphtha with natural gas as feed. The Improve-type engineering service contract awarded in February 2010 has been extended twice by the customer and is now in its fourth year. The customer’s support and professional work culture has made it possible for WorleyParsons to achieve this outstanding safety record.

For more information on WorleyParsons’ commitment to zero harm, visit HealthSafetyandEnvironment.aspx


HQ Magazine Focus on zero harm

The EPCM Improve contract covers the execution of brownfield-type projects of 43 oil and gas platforms off the east coast of Peninsular Malaysia and is one of the major Improve contracts being executed by PRW. To date, PRW has safely completed half of the 90 AFS (Approved for Services) issued under the contract. To ensure the safety of our people executing the work, PRW embedded the WorleyParsons OneWayTM framework in all areas of the scope.

Working together Pioneering a new safety innovation technology with Imperial Oil WorleyParsonsCord, our modularization and fabrication construction division, is using radiofrequency identification (RFID) technology to pilot groundbreaking safety measures. RFID technology uses a wireless, non-contact system to transfer data between a tag attached to an object and a networked system. The tag contains electronically stored information which can be read from up to several meters away. WorleyParsonsCord is pioneering the use of this technology in its field. This is the first time that the Scan-Link RFID technology has been used for workplace safety purposes at a modularization and fabrication company anywhere in North America. The team at the WorleyParsonsCord modularization yards in Edmonton has been using the technology to reduce the chance of injury to workers caused by most mobile lifting equipment. Patrick Lavin, manager of the Edmonton modularization yard, says RFID strips are being placed on the hard hats worn by employees. These strips will then communicate with an RFID networked system built into the different mobile lifting equipment on the work site. “When any person wearing a hard hat goes behind a machine, a sensor on the machine beeps. There’s an alarm and visual LED light in the cab of the machine that warns the operator that there is someone behind the equipment. “We’ll be installing RFID sensors on all of our mobile lifting equipment at the worksite, other than cranes. This includes zoom booms, forklifts and skid steers.” The cost for implementing this pilot is being shared with WorleyParsonsCord’s customer, Imperial Oil. Discussions are also underway with other customers and partners to agree on further cost-sharing opportunities. The modularization yards at WorleyParsonsCord operate year-round and are constantly bustling with equipment and human activity. More than 1,000 employees work at the three modularization yards combined, and they have the capacity to build 500 modules per year.

hq magazine Global awards and recognition 5

Global awards and detailed engineering for an additional 124km x 26” onshore pipeline and facilities. This is a 250km loop line project where the original Mozambique Secunda Pipeline (MSP) capacity will be increased by 18 petajoule per annum (PJ/a) to meet the increased demand from downstream customers in Mozambique.

Africa Lucapa subsea FEED awarded in Angola Cabinda Gulf Oil Company Limited has selected WorleyParsons and INTECSEA to execute the front-end engineering and design (FEED) for the subsea facilities associated with the Lucapa Field.

“Following the successful completion of the FEED phase, we are looking forward to strengthening our continued relationship with Sasol into Mozambique,” Francois Bosch, general manager—hydrocarbons, SubSaharan Africa for onshore projects, commented.


The subsea development includes production wells with artificial lift and water injection wells tied back to a floating production, storage and offloading facility. The Lucapa Field is located in Block 14 off Angola’s coast on the north rim of the Congo River Canyon in 3,000 to 6,000 feet of water. “We are extremely pleased that Chevron has selected INTECSEA and WorleyParsons to deliver the subsea FEED phase of the Lucapa project,” said WorleyParsons CEO, Andrew Wood. “This is an excellent example of our deepwater subsea project delivery capabilities and our commitment to develop local content capabilities in Angola. Chevron is one of our top global customers and we look forward to continuing a strong working relationship with them.” The Lucapa development is a joint venture between Chevron, Sonangol, ENI, Total and Galp. Sasol gas pipeline award in Mozambique Sastech has selected WorleyParsons to perform the engineering, procurement and construction management (EPCM) services for the ROMPCO loop line project, consisting of EPCM services for a 127km x 26” onshore pipeline facility and basic


HQ Magazine Global awards

Nanjing, China team expands role with BASF BASF-YPC, a joint venture company between BASF and Sinopec China, has awarded WorleyParsons the FEED package for its ethylene oxide (EO) plant expansion. Ethylene oxide is one of the most important raw materials used in the large-scale chemical production of consumer products as diverse as antifreeze, plastic bottles, perfumes, cosmetics, pharmaceuticals, lubricants, lacquers and paints. The plant, located at BASF-YPC’s US$3 billion petrochemical production complex in Nanjing, China, will be expanded to a total production capacity of 380,000 metric tons per year, which represents an increase of approximately 50,000 metric tons per year.

Growing our LNG regasification hub in Singapore The Andhra Pradesh Floating LNG Terminal owners, GDF SUEZ and Andhra Pradesh Gas Distribution Corporation (APGDC), have awarded WorleyParsons a significant Pre-FEED Study. The study will assess floating terminal options, including various marine jetty configurations with floating storage and regasification units (FSRU’s). The scope of services will also extend to the subsea pipeline and the onshore receiving facility design. The work will be headed out of Singapore with design carried out in the Melbourne and India locations. The study will draw on the strengths of Singapore’s LNG regasification experience, INTECSEA’s floating system capability and India’s local customer project coordination and support of the onshore facilities design. This will be the seventh FSRU/nearshore regasification terminal project executed between Singapore and Melbourne, making WorleyParsons together with INTECSEA the industry leader in the Asian region for such developments.

Singapore LNG expansion Singapore LNG Corporation Pte Ltd (SLNG) has awarded a FEED contract to WorleyParsons to define the scope of the expansion of its LNG terminal send-out and storage capacities. The expansion plans include the installation of additional facilities to increase the terminal’s capacity from its current six million tonnes per annum (mtpa) throughput to a new annual capacity of nine mtpa and the construction of a fourth tank. “The FEED project is vital as it provides the required engineering design and comprehensive scope of works that will enable SLNG to invite tenders for the engineering, procurement and construction (EPC) contract for the development of the new facilities, as well as the development of the capital cost estimates for the expansion. The project officially kicked off in October 2012 and is expected to be completed in the second quarter of 2013. The final investment decision for the construction of the fourth LNG storage tank and its associated facilities will be made after that,” said Neil McGregor, CEO of SLNG.


Bayu Undan Phase 3 WorleyParsons has been awarded the FEED work for the topsides component of the ConocoPhillips Bayu Undan Phase 3 project. The FEED contract is the result of the success of our Perth operations developing a viable option through to the define and evaluate phases. The project involves the tie-back of two new subsea wells in the Bayu Undan field to existing facilities in order to tap the liquids in the reservoir’s outer rim. A six-week study uncovered an alternative option of routing the subsea wells to the existing dual path platform. Subsequently, an extension to the evaluate phase was initiated to complete some preliminary FEED work prior to the actual FEED.

TransfieldWorley wins INPEX’s Ichthys project INPEX has awarded TransfieldWorley in Perth the Integrity and Maintenance Contract for their Ichthys Project. This Improve project is expected to produce 8.4 mtpa of LNG and 1.6 mtpa of liquefied petroleum gases (LPGs) and will produce up to 100,000 barrels of condensate per day. The contract includes the complete integrity and maintenance build for all facilities, including the SURF, CPF, FPSO, GEP and onshore LNG plant and associated facilities. TransfieldWorley in Perth will provide overall project management while WorleyParsons’ Asset Integrity Solutions (Melbourne), INTECSEA (Houston) and Transfield Services' whollyowned subsidiary, Hofincons (Chennai) will each contribute their expertise to key elements. WorleyParsons will develop the asset integrity program for the topsides, lifting equipment and onshore facilities; INTECSEA will develop the asset integrity program for all subsea elements, including SURF; and Hofincons will assist the Perth team in developing the maintenance strategy.

HQ Magazine Global awards 7

optimization and cost reduction efforts, and the pre-project and basic engineering studies. “We have been working with Total for many years on the development of its Joslyn oil sands asset,” said Greg Coady, vice president of operations in Calgary. “We are pleased to have the opportunity to continue our relationship as the project progresses through FEED and into future phases.” A major hydrocarbons facility like this being developed from conceptual design through to commissioning and operations is an exciting engineering opportunity for WorleyParsons. We understand that maintaining engagement in this large investment at each development phase requires continual commitment to delivering value to the owner.

Canadian Natural's Horizon Upgrader site

Canada Canada’s Fort Hills Mine detailed engineering WorleyParsons has been appointed to provide services for the Fort Hills Oil Sands Project detail engineering phase; ore preparation plant, and extraction and tailings areas.

Canadian Natural Resources Limited (Canadian Natural) recently awarded WorleyParsons the engineering and procurement services for the tie-in of the new Williams plant at their Horizon Upgrader site. The work will be completed by the same team that previously worked on the recent debottlenecking project and will drive cost efficiency through this comprehensive understanding of the plant.

This award follows the completion of the define phase of this project. The work will begin immediately and will be performed by WorleyParsons’ Edmonton Operations with support from WorleyParsons’ Eastern Canada Operations and WorleyParsons’ high value execution office in China. The Fort Hills Mine is jointly owned by Suncor Energy, Total E&P Canada Ltd. and Teck Resources Ltd., and is operated by Suncor Energy Operating Inc. (SEOI). Commenting on the award, WorleyParsons CEO, Andrew Wood said, “We are pleased that the Fort Hills Mine has chosen WorleyParsons for the next phase of this world-scale oil sands project.”

Total’s Joslyn North Oil Sands Projects moves closer to production WorleyParsons is delighted to have been awarded the design validation and Engineering Design Specification (EDS) phases for Total’s Joslyn North Mine Extraction project in Alberta, Canada. The team has previously provided the design


HQ Magazine Global awards

Middle East WorleyParsons secures major contracts in Iraq WorleyParsons has been awarded a three-year contract by Shell Gas Iraq BV to provide project management support and services for the rehabilitation of gas facilities and infrastructure as part of the scope of Basrah Gas Company (BGC). This award follows the three-year LukOil Mid-East contract to provide project management services for the West Qurna-2 oil field development project in Iraq. Jim Osborn, hydrocarbons senior vice president,

commented, “Since Project RIO nearly a decade ago, we have maintained an active interest in supporting the recovery of the hydrocarbons industry in Iraq. These contracts are individually and collectively important as they significantly contribute to the sustainability of the Iraqi economy and environment. We will work closely with the development partners to ensure we create the maximum value over the lifetime of the asset.” The associated gas currently being flared from the three southern oil fields is valued at $10 million per day. WorleyParsons will provide project management, technical and construction supervision personnel to support BGC in the rehabilitation, inspection and EPC activities. WorleyParsons will also provide an established project management system which will help manage and control the project effectively during its execution—from the plant inspections through to engineering and design concluding with commissioning. Our offices in Iraq and the United Arab Emirates will execute the contract, which will involve work sharing with different locations around the world.

BP extends Rumaila contract BP and its partners have extended WorleyParsons’ contract to boost production at the Rumaila oilfield in Southern Iraq. We continue to provide engineering, procurement and management services to increase output at the field. Under the terms of the 20-year Rumaila technical services contract, BP and its partners are required to nearly triple output from the giant oilfield to more than 2.8 million barrels of oil per day over the next six years. WorleyParsons understands the significance of the Rumaila development to the regeneration of the Iraqi economy, and will work closely with the partners in the Rumaila development, BP, PetroChina and the State Oil Marketing Organization to create the maximum value over the lifetime of the field.

Saudi Aramco’s General Engineering Services WorleyParsons, in joint venture with Abdulaziz Kamel & Partners Co. and Alrabiah Consulting & Engineering Services, has been awarded a General Engineering and Project Management Service contract by Saudi Arabian Oil Company (Saudi Aramco). The base term of the contract will be for five years with an option for up to three additional years. The scope of work includes the performance of all engineering, design and project management and related services, including but not limited to FEED services, detail engineering, design, planning, scheduling, estimating, procurement services and construction management. The contract will be executed in the joint venture offices in Al Khobar, Saudi Arabia. It is expected that the joint venture offices will execute half a million to a million man-hours per year in services for Saudi Aramco, employing 250 to 500 people. The program is designed to develop local talent and increase Saudi Aramco’s local content on projects. The program awards contracts to international engineering and contracting companies that agree to carry out work in the country and create conglomerates with local Saudi engineering firms, which will ensure Saudi involvement in the technical design work. Becoming part of the program further enhances WorleyParsons’ reputation for being localization experts and positions us for future FEED projects. Commenting, WorleyParsons’ CEO Andrew Wood stated, “We are pleased to be able to continue our involvement in the creation of local entities capable of providing high-end engineering, project management and technology services promoting the local economy and opportunities for Saudi Arabian nationals. We will work closely with our partners to create the maximum value and bring engineering and management solutions to Saudi Aramco projects”.

For more information on WorleyParsons contract awards, visit

HQ Magazine Global awards 9

Thought leaders Meet the LNG 17 team: WorleyParsons and INTECSEA intorduce a team of seasoned industry professionals at the 2013 LNG 17 Conference. Review our experienced people below and be sure to reach out to them at the conference or via

Paul Sullivan

Dan McGinnis



Paul holds a B.E. in Civil Engineering from University College Dublin and is a chartered member of the Institution of Engineers of Ireland, the Institution of Water and Environmental Engineers and the American Institute of Chemical Engineers. He is a PE Grade 1 European Engineer, with expertise in LNG, geotechnics, environmental remediation, soil mechanics, and construction and project management. He is active in LNG code committees and the Co-Chairman of Gastech, a major global LNG conference.


HQ Magazine Thought leaders

Dan is responsible for WorleyParsons’ global growth strategy for Unconventional Oil & Gas. Prior to joining WorleyParsons, His background includes 10 years in upstream engineering and procurement, four years in marketing and trading and 15 years in business development for large energy infrastructure projects, including fossil fuel and renewable power, LNG and pipeline facilities.

Follow us on Twitter: @WORLEYPARSONS

Jan Van Willigen

Chris Mann



Jan has been at the forefront of some of the largest hydrocarbons developments in the past decade. His deep understanding of the investment and optimal contracting strategies results in him being regularly consulted by customers throughout the project delivery life cycle. Jan earned a B.S in General Engineering from the University of California at Los Angeles and is a registered professional engineer with nearly 40 years of industry experience.

Chris has 20 years of in the hydrocarbons industry across the Americas, ranging from all aspects of engineering and field/shop construction services through to total project delivery. Starting at Colt Engineering, he has been with WorleyParsons for 10 years and has a strong belief in strengthening customer relationships through an environment where the team can solve problems, be innovative, create value and ensure we meet the changing needs and expectations of our customers.

James Hudgens

John Schepis



James has nearly 25 years of experience in project delivery and project management, eight of which have been spent managing and developing LNG projects. James worked on the Adriatic LNG project (offshore Italy) and was previously the director of Mustang Engineering's LNG group.

John is a recognized world leader in LNG wharfing. His extensive understanding of all pre-feasibility aspects on an LNG development ensures project risk assessment is accurate and comprehensive. John holds a Bachelors in Engineering and provides leadership to our marine and coastal facilities group.

Joe Verghese

Alfred Moujaes



Joe’s nearly 45 years of industry experience are supplemented by his bachelor’s degree in chemical engineering and MBA. His areas of expertise include upstream oil and gas, field development planning and architecture, deepwater technologies and applications, floating production systems, LNG and floating LNG, subsea architecture and flow assurance, heavy oil, gas processing, GTL, technology management and strategy development.

Alfred is responsible for the LNG Select team and all LNG activities for the Americas and the Caribbean. He has extensive experience and a proven record in business development, project management and operations in the oil and gas, refining, petrochemical and power generation industries. This experience includes significant roles as an owner as well as a contractor providing direction for both large- and small-scale programs, both domestic and international.

HQ Magazine Thought leaders 11

Bryan Trocquet

Nancy Ballout



Bryan has more than 35 years of experience in the oil, natural gas and LNG business sectors; holding key engineering, business development, project management and operations management positions. His knowledge and expertise in onshore and floating liquefaction and regasification concepts span the world. Bryan has also worked on both small- and mid-scale modular liquefaction designs.

Nancy is a senior technical consultant for Select, the front-end division of WorleyParsons. She is involved in the pursuit and execution of onshore and floating LNG project opportunities. Nancy has more than 14 years of experience in LNG operations and process design, and has operated and assisted in numerous liquefaction facility startups around the world.

David A. Franklin

Julio Rios



David has more than 33 years of experience in gas processing, sulphur recovery and LNG. Prior to joining WorleyParsons, he was an LNG facilities manager at Mustang Engineering.

Julio holds master's and bachelor’s degrees in chemical engineering and has more than 37 years of experience as a process engineer. His focus areas include, LNG, refining, GTLs, CTLs, petrochemicals and gas processing.

Martin Rosetta

Bill Westcott



Martin has 21 years of experience in LNG process design, gas processing and LNG liquefaction and regasification. He is a recognized industry leader in LNG production and storage, cryogenic gas plants, NGL distillation, process control systems, amine treatment, refrigeration systems and utility systems. He has worked on numerous regasification facilities and small scale liquefaction facilities.

Bill has more than 38 years of mechanical engineering, project management and business development experience in the oil and gas industry. He has held various engineering and technical management roles, as well as project management positions with offshore facilities design, including process, structural, and instrumentation & control systems.

Bill Washington DIRECTOR—BUSINESS DEVELOPMENT Bill earned a bachelor's degree in Business Administration and an MBA in International Business and Finance, and has more than 25 years of business development and strategy experience. He has been involved with a subsea technology group and discussions with key potential users of 9% nickel subsea LNG pipeline solutions, and has also worked with a firm promoting MOSS and LNG prismatic/ membrane carrier technology.


HQ Magazine Thought leaders


Upcoming events OFFSHORE TECHNOLOGY CONFERENCE (OTC) May 6-9, 2013 Reliant Park—Houston, TX Booth #1181 Join WorleyParsons, INTECSEA , our African partner, DeltaAfrik, and our newly acquired Norwegian engineering and fabrication team, Rosenberg at OTC. Inbooth presentations delivered Monday through Wednesday will provide information on our single integrated project delivery offering, which provides our customers with services from wellhead to market. When harnessed with our established capability in the design of offshore facilities ranging from the simplest of unmanned platforms through to complex floatover topsides weighing up to 33,000 tons, we offer unique and comprehensive full-service solutions in a range of specialty areas. Our customers can expect to receive successful project integration with certainty in delivery, which only comes from highly experienced and integrated project teams operating under a single leadership structure.

45TH ANNUAL ENGINEERING AND CONSTRUCTION CONTRACTING (ECC) CONFERENCE September 11-14, 2013 JW Marriott—Palm Springs, CA The annual Engineering & Construction Contracting Association (ECC) conference provides executives and decision-makers from across North America and around the globe with the opportunity to interact with industry thought leaders and peers. This two–day conference includes world-class keynote speakers, plenary sessions on trends and strategies, breakout forums on specific topics, social events and extensive networking opportunities. Connect with us on:

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Pipeline Systems Projects in Queensland’s Burgeoning LNG and CSG Market Peter Cox Vice President, Global Pipeline Systems

It is an extraordinary time for WorleyParsons in this market at the moment as we are currently involved in some of the largest liquefied natural gas (LNG) and coal seam gas (CSG) pipeline projects in Queensland. These pipelines are


HQ Magazine Pipelines systems projects in Queensland

transporting CSG (including wet gas) directly from the wellheads with the water stream and pipelinequality dry gas and delivering them to LNG plants.

MAJOR PROJECTS IN QUEENSLAND We are completing the detailed design of 19 medium- to high-pressure steel gas pipelines ranging from DN300 to DN600 in diameter with a total length of approximately 240 km as part of the EPCM services for the Queensland Curtis LNG (QCLNG) Upstream Project. Additionally, we are responsible for 150 km of cement-lined carbon steel water trunklines and around 6,000 km of polyethylene gas and water gathering networks ranging in diameters from DN160 to DN630. This project is noteworthy due to its sheer size and amazing complexity. WorleyParsons has added value through providing construction services, field survey activities, procurement and detailed engineering all within one team. This has enabled the field survey activities to be targeted to the needs of the designers and the engineering work prioritized to suit the construction program. Involvement of construction people is essential in the detailed design phase—especially in pipeline projects—to ensure the design is both constructible and suited to the installation equipment and methodology to be employed.

initial stages of projects in order to maximize our customers’ ultimate business outcomes. > WorleyParsons was instrumental in working with Australia Pacific LNG Project since its inception. Our environmental team, together with the Australia Pacific LNG Project, completed the Environmental Impact Assessment in record time. We are now acting as the Owner’s Engineer for the export pipelines and have performed the FEED and detailed design of the compression facilities and are also supporting the Australia Pacific LNG Project in the gathering network team. Unlike a traditional EPC approach, which has the potential to result in project conflict, schedule slippage and cost blowouts, undertaking engineering, construction management, procurement and completions, and employing proven systems—a method WorleyParsons embraces—minimizes risks in pipeline systems project delivery.

> Arrow Energy has awarded the preliminary engineering design of about 1,150 km of gas pipelines for its LNG project to WorleyParsons. This is among the largest pipeline projects in Australia and includes Arrow’s two major pipelines that will transmit natural gas from its gas fields in the Bowen and Surat basins—each more than 500 km—to Gladstone. Arrow CEO, Andrew Faulkner, said “WorleyParsons was chosen for its understanding of our requirements and its availability to complete the work appropriately.” > In addition to the Midstream Project Pipelines, WorleyParsons is working on the Select phase of the Upstream Arrow LNG Project in the Surat and Bowen basins. Our specialist front-end services draw on real-word project experience in order to support decision making in the

HQ Magazine Pipeline systems projects in Queensland 15

FLNG Tech Talk: Gas or Steam?

Amin Almasi, WorleyPArsons 16

hq magazine Global awards and recognition

Our rotating machines expert, Amin Almasi explains why aero derivative gas turbines win hands-down over steam for FLNG applications. The difficulties with onshore LNG projects (particularly long offshore gas pipelines) have renewed the interest in offshore LNG production. The floating LNG (FLNG) production vessel has become the industry innovation in making smaller and more remote offshore natural gas assets commercially viable at plant capacities of around 1 mmtpa to 5 mmtpa. The turbomachineries for FLNG units are discussed and the aero-derivative gas turbine is recommended as the best driver option in this article. Other solutions such as steam turbine drivers could also be employed. Eco-friendlier A typical LNG plant requires around 35-55 MW power per 1 mmtpa LNG production capacity. Aeroderivative gas turbines have long been proposed for FLNG and have a number of important advantages over their industrial heavy frame counterparts and other drivers. The smaller carbon footprint of aero-derivative gas turbines is one such advantage that can’t be ignored. Aero-derivative gas turbine sections are modular and light, and the modules can usually be replaced very quickly. Higher thermal efficiency—over 40% (or even sometimes 46%) compared to around 30-35% for a typical industrial heavy frame gas turbine, represents a significant savings on fuel and reduction in carbon emissions.

HQ Magazine LNG Tech Talk 17

Electric drivers are onshore, not offshore Electric motor drivers with the combined-cycle power plant solution may be an effective, flexible and suitable solution for onshore LNG plants. However, this solution could not be an attractive option for an FLNG vessel. The justification for the electrical motor drives for an FLNG vessel may not be as strong as anticipated by some vendors. The VSD electric motors need large, heavy equipment and auxiliaries (such as the transformers, VSD units, harmonic filters and others). It is too complex for FLNG. From the perspectives of the equipment size, weight, structural steel and total cost, the aero-derivative gas turbines have an advantage over the largescale combined-cycle power generation and the VSD electric motor drivers for FLNG applications. Steam is simple, but how efficient is it? The propulsion in LNG carriers has been run by steam turbines for many years. This steam turbine solution uses boil-off gas (BOG) and another liquid fuel as a back-up for the boiler’s heat source. The technology is well developed, flexible, reliable and simple, and the simplicity of it is highlighted by supporters of this solution. The steam turbine is proposed by some important players for FLNG compressor drivers, however, the overall efficiency is relatively low. Aero-derivative gas turbines can be used as “the best option” for an FLNG with a relatively high efficiency. In addition to weight, space and design characteristics, there are many operational advantages which prioritize the aero-derivative drivers for an FLNG unit. Since aero-derivative gas turbines are based on aircraft engines, they are more suitable for floating or moving units. For example, the dynamic motion could prevent proper return (or supply) of the lubrication oil for the sensitive hydrodynamic bearings of the heavy industrial frame gas turbines (or other rotating machines). On the other hand, for an aero-derivative gas turbine, generally, the rolling-element bearings are used and proper systems are developed to avoid any lubrication oil return problems in a floating unit. Aero-derivative gas turbines could result in a slightly higher initial price compared to other solutions, however, due to relatively high efficiencies, the time until the return on that investment is realized could be less than one year. Active magnetic bearings could be a reliable and modern solution for FLNG compressors. Compared to oil-lubricated machines, they reduce the footprint and weight, simplify operation and ensure that the process gas cannot be contaminated with the lubrication oil.


HQ Magazine LNG Tech Talk

The Safety Imperative Safety issues can impact turbomachine selection, design, development and the layout of an FLNG vessel. Turbomachine arrangement criteria are more stringent than an onshore LNG vessel because of factors such as: • The limited footprint • The light-weight design and the need for a good weight distribution • The requirement for low dynamic loads to limit the vibration The effect of machinery weight (and the dynamic loads) on the extent and weight of supporting structural steel (and the FLNG design) can be significant. Advanced safety protocols are needed for the prevention of incidents—for example, avoidance of leakage and ignition and the hazard mitigation including the fire detection, the gas detection and the emergency shutdown. FLNG vessels have the highest equipment densities as compared to other onshore or offshore units. This factor substantially increases the potential severity of a serious failure or explosion, which could escalate to a total facility loss. A catastrophic turbomachine failure could cause LNG hull damage and even a large-scale discharge of LNG into the sea. This hull damage (or failure) could be followed by a rapid LNG phase transition, which can cause serious structural damage to the FLNG, including a stability loss. Operating and maintaining a large FLNG vessel of any design would require a substantial workforce (say above 50 people). The safety for such a large offshore population is a major operating cost and a challenge that cannot be taken lightly. Amin Almasi is a lead rotating equipment engineer at WorleyParsons. He specializes in rotating machines including centrifugal, screw and reciprocating compressors, gas and steam turbines, pumps, condition monitoring and reliability. He has authored more than 60 papers and articles dealing with rotating machines.


Scope: WorleyParsons is providing the basis of design and FEED, including the development of the EPC contractor tender documents an subsequent evaluation and recommendations.

To increase the security of Singapore’s domestic gas supply, PowerGas is constructing the first LNG regasification terminal on Jurong Island. WorleyParsons’ expertise in hydrocarbons, power and infrastructure—coupled with a 20 year heritage in Singapore—and a global process capability are critical to the success of this important project.


Scope: A series of deepwater subsea wells tied back by flowlines to a remotely-operated platform which exports the gas to an LNG plant via a subsea trunkline.

Our modularization skill set is being used extensively on the Pluto LNG Development project. Woodside is developing its Pluto offshore gas field through an offshore production system and an onshore LNG production plant with an initial capacity of five to six million tonnes per year. WorleyParsons has key roles in the FEED and EPCM joint ventures executing the offshore platform, onshore plant facilities, associated site infrastructure and marine facilities. Photo courtesy of Woodside Energy Limited

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HQ Magazine Project report 19

From Flare to Fuel: The Case for Mini-LNG David A. Franklin, WorleyParsons US natural gas: a decade of chaos Just 10 years ago, the clarion call of US energy prognosticators and regulators was that the US was running out of natural gas. As a result, the industry began scouring the coasts of the United States for sites to build liquefied natural gas (LNG) import terminals, and the Federal Energy Regulatory Commission (FERC) and the U.S. Coast Guard (USCG) were overwhelmed with proposals and permit applications to build onshore and offshore regasification terminals. Natural gas and natural gas liquids (NGLs) prices reached uneconomic levels for many industries, many manufacturers invested in foreign facilities to minimize costs and utilities began to look favorably at coal and nuclear energy for base load power production as natural gas prices soared from $2/MMBtu to peaks exceeding $15/MMBtu. Although the presence of shale and tight gas seams had been well established for many years (shallow, small-scale horizontal drilling and fracturing had been demonstrated in the 1930s and 1940s), oil and gas drillers lacked the large scale technology to economically recover the vast potential of the deep, narrow tight gas seams. The findings of the


HQ Magazine From Flare to Fuel

U.S. Department of Energy’s (DOE) “Eastern Gas Shales Project” report ignited the imagination of wildcat driller and founder of Mitchell Energy and Development Corporation, George P. Mitchell, to develop directional drilling methods to guide the drill string into the deep tight horizontal seams of the Barnett Shale. Mitchell worked diligently with cutting edge well fracturing contractor Union Pacific Resources, developing multi-fracturing techniques to stimulate production. The methods developed were so different from the conventional techniques that the produced gas was classified as “unconventional gas.” Improvements in techniques and technologies realized in the past 10-15 years have seen shale gas grow from contributing less than 1% of the U.S. gas supply in 2000 to 25% today with projections of as much as 50% by 2035. The excess supply of natural gas made available by the horizontal drilling revolution has depressed the price to the point of being uneconomic to drill or import. This has been disruptive to many industries, including the recently built LNG import terminals which now sit idle, several of which have applied for permits to liquefy and export LNG to try to recover their investments.

The shale oil revolution As natural gas prices have fallen, exploration and production companies have employed and optimized the horizontal drilling and production techniques to produce wet gas and oil from shales and tight sands. The Bakken, Eagle Ford, Niobrara and Marcellus basins have sparked one of the largest oil and gas booms in U.S. history and recent developments in the vast California Monterey Shales indicate reserves four times greater than those contained in the Bakken. The U.S.—once dependent on foreign oil—may soon be the largest oil producer in the world. Natural gas is also co-produced with shale oil. This “associated gas” is often dripping wet with condensate, butane, propane and ethane. Condensate is easily extracted on site and is often recovered and put into the crude stream that is trucked to market. In regions with ample pipelines such as the Eagle Ford, the “rich gas” is transported to gas processing facilities to recover the ethane, propane and butane liquids while the methane is diverted to the gas network. However, some of the most productive shale oil regions are so remote and the local wellhead value of the natural gas is so low that it is currently uneconomic to recover the associated gas and NGLs. Over 30% (about 250 MMSCFD) of the associated gas produced from the Bakken shales is currently being flared in the process of recovering the oil and similar flaring in other shale basins is also common (i.e. Eagle Ford, Niobrara, Marcellus, Utica, etc.). Environmental regulators and energy producers are scrambling to find solutions or create beneficial markets and develop economic processes to recover these hydrocarbons in order to reduce this wasteful practice. One potential solution to this issue is to totally condense all of the hydrocarbons locally and truck them to market in the same manner that the crude oil is currently hauled. The mini-LNG solution LNG liquefaction is often viewed as unprofitable unless it is done on a grand scale of 4.5-6 million metric tonnes per annum (MMTPA). Large- and mid-scale based load plants are optimized for shipborne cargoes to reach distant utility markets. Small-scale liquefaction is usually provided in utility peak shaving applications with pipeline quality gas as a feedstock. A mini-LNG plant can provide an attractive solution to remote gas flaring with LNG targeted at the transportation fuel market

where it can compete favorably with traditional petroleum based fuels. However, producing an LNG product from the rich gas associated with shale oil production requires considerable care and attention to composition and products. The flared gas quantities at each well site are fairly small, averaging less than 300,000 standard cubic feet per day (MMSCFD). A small gathering system must be developed to accumulate sufficient quantities of gas to justify production. To maximize participation, the facilities must be small enough to be mobile and only require a small gathering pipe network. The minimum economic size of the facility should accommodate about 2-5 MMSCFD of the flared gas. All of the hydrocarbons and contaminants must be accounted for. For simplicity and for economics, it is assumed that the mini-LNG facility will produce three products: LNG, liquid ethane and C3+ NGLs. The value of ethane is currently less than the value of pipeline natural gas and may be used as feedstock to chemical plants or as fuel in thermal power plants. Removal of most of the ethane is required to produce marketable quality LNG, optimize the value for the remaining C3+ hydrocarbons and provide economic storage and transportation options. LNG as a transportable fuel There is a growing demand for LNG as a transportation fuel for trucks, drill rigs, mine haul and mining equipment, rail locomotives, ship fuel and remote power generation. LNG currently offers significant economic and environmental benefits to users. These benefits have been proven by the recent California Clean Ports initiative at the Ports of Los Angeles and Long Beach where LNG and CNG fueled vehicles were given advantageous access to the ports. LNG currently sells at $1.00-$1.50 discount to diesel on an equivalent diesel basis (dge). LNG also offers companies an economic way to achieve the Environmental Protection Agency (EPA) Tier III and Tier IV emission guidelines for off-road vehicles and stationary equipment such as power generators. LNG is transportable and is cost effective at current pricing. Cleaning up the gas Natural gas occurs with a myriad of compositions and every gas formation has a characteristic composition that can also vary over time as the field is produced. Natural gas is always comprised of mainly methane (C1), but natural gas liquids (NGLs) ethane (C2), propane (C3), butanes (iC4, nC4), pentanes (C5s),

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hexanes (C6s) and other hydrocarbons are also common components. Water and inert gases such as carbon dioxide (CO2), nitrogen and helium, sulphur compounds including H2S, COS, CS2 and organic sulphurs such as various mercaptans may also be present in natural gas. The producer of natural gas or LNG must understand the markets that are available for the gas. If the gas will be sold into the pipeline grid for utility use, then it must meet the tariff composition specifications of the pipeline. Every pipeline in the U.S. has slightly different tariff requirements, but typically the water must be removed to less than 7 lbs/MMSCF, nitrogen and CO2 must not exceed 2-3% and the higher heating value (HHV) must be in the range of 1,000 to 1,100 Btu/ scf. Gas processing facilities are provided to remove the sulphur, CO2, water, and NGLs to meet the pipeline specifications and the NGLs are recovered and further fractionated and purified to be sold into other fuel and chemical feedstock markets. LNG shelf life and market composition considerations Producing LNG requires cryogenic refrigeration, which can be provided by one of many various open art or proprietary licensed liquefaction processes, to cool and condense methane to about -260°F. The cryogenic refrigeration system may also be used beneficially to separate the methane, ethane and C3+ product streams. Some components of natural gas can freeze and foul the cryogenic heat exchanger and must be removed. These include water (<1.0 ppm), CO2 (<50 ppm), C5 (<0.1 mole%), C6+(<20 ppm). To meet most LNG specifications, H2S must also be removed (<4ppm) and total sulphur must be minimized (<20 ppm). If the LNG end user is a pipeline then the tariff composition limits will apply. Dual fuel diesel engines that utilize a small amount of diesel for ignition and LNG for the balance of fuel are typically tolerant to a wide range of LNG compositions. A gas turbine driven power generation facility will require a gas composition that meets the Wobbe Index (or Modified Wobbe Index) specified by the gas turbine supplier. If end users include spark ignited reciprocating engines then the Methane Number (MN) of the fuel must typically be greater than 85 to avoid detonation. Further complicating the LNG seller’s life is the fragile nature of LNG. LNG only stays in a liquid state at very cold temperatures and is stored at its bubble point (boiling) in highly insulated storage tanks designed


HQ Magazine From Flare to Fuel

to minimize heat leaking into the fuel from the environment. The LNG is constantly boiling off as heat leaks into the tank. If stored in a pressure vessel with a relief valve, the pressure in the tank will increase until it is vented. If the pressure is fairly constant in a large storage tank, the vapor boiling off (boil-off gas or BOG) must be removed by compressors and either discharged to a pipeline, used as fuel or recondensed in a liquefier. Nitrogen and methane have the lowest boiling points in LNG and will preferentially boil off first, leaving behind the heavier fractions of ethane, propane and butanes. Unless the LNG is constantly sold and replenished, the composition of the stored gas will change over time, gradually increasing in heating value as the methane and nitrogen boil off. At a production facility this is not an issue; however, if the end user is a fleet of vehicles and some of the vehicles sit idle for a considerable length of time, the heating value/methane number (MN) of the contents inside the LNG tank could trend outside of the engine manufacturers guidelines for detonation and could cause serious damage to the engines. The LNG transportation fuels industry has established some guidelines to assure that fuel will not likely fall out of specification. The recommended composition for transportation fuel that includes spark ignited engines is to provide an LNG that is >97% methane and <1% ethane and <2% inerts. LNG of this quality is difficult and expensive to make and many LNG fuel marketers have relaxed the guidelines to LNG having a MN>90 to assure adequate supply for their customers.  Dollars and cents Current market prices show an opportunity for exploiting LNG as a replacement fuel for diesel. LNG currently sells at about 50% of the diesel value before taxes, marketing and transportation costs. Condensate, propane and butane also have significant value. Ethane—the lowest value hydrocarbon—is a refrigerant, a fuel and a feedstock for ethylene crackers and can also be converted to synthetic liquid fuels in a gas-to-liquids (GTL) plant. The abundant supply of ethane from the shale oil revolution has flooded the market and is currently selling at record lows. Many ethylene plants are being built to exploit this low cost feedstock. If the mini-LNG facility is simplified to only produce the three proposed products, what prices can the producer expect to receive? Some general assumptions and

and a refrigeration system utilizing liquid nitrogen as a disposable refrigerant. As seen in the analysis at left, flared gas can be economically recovered and sold into the various markets. The fuel savings after taxes, transportation and fuel service costs have been applied for a truck fleet converting to LNG fuel to show the demand for and incentive to convert the fleet to LNG fuel.

simplifications have been made as follows. • A composition for Bakken associated gas has been used (published by the North Dakota EERC in their recent flare study published Nov 05, 2012). • LNG is selling for about $12/MMBtu HHV (about $1.00/gallon). Assume that the facility can capture 75% of this price. • Ethane is currently selling for about $0.20/ gallon at the wellhead in the Eagle Ford. • C3+ (Propane + heavier hydrocarbons) will sell at a discount to purity propane to cover transportation and fractionation cost. Assume the facility can capture $0.60/gallon for the C3+ mix. Considering the current market prices for fuels, the economics for a mini-LNG facility can be estimated. A 2.5 MMSCFD mini-LNG facility is shown in the above table and two different liquefaction technologies are evaluated. The first is a conventional molecular sievebased CO2 and dehydration system with a rotating machinery based cryogenic refrigeration system and the second is a simple molecular sieve pretreatment

Conclusion Mini-LNG facilities can offer a “flareto-fuel” solution for associated gas currently being flared in remote shale oil regions. To relieve the environmental regulatory pressure mounting to reduce flaring, the hydrocarbons can be economically captured and sold into the fuels and petrochemical markets. There is sufficient margin for profitability to fully produce the flared gas by condensing it into liquid products even on a small scale of only 2.5 MMSCFD. There is sufficient demand for the LNG fuels and adequate pricing for NGLs to justify many projects, providing the U.S. with the opportunity to quench the flares and reap the additional benefits of the shale oil boom by recovering the hydrocarbon fuels in the associated gas. David A. Franklin's biography can be found on page 12 of this issue.

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Office intel Major Accident Hazards Technology Workshop WorleyParsons in Brunei partnered with The Society of Petroleum Engineers (SPE) to run the Management of Major Accident Hazards Technology Workshop at the Empire Hotel and Country Club in Brunei. Leading practitioners from around the world were in attendance and keynote presentations were given by the Minister of Development, Negara Brunei Darussalam and the Deputy Managing Director of Brunei Shell Petroleum. Mark Cowan, principal safety engineer with Damit WorleyParsons co-chaired the workshop which discussed a number of active topics in the area of major accident hazard management and sustainability through the design and operational life of assets. He commented, “This Technology Workshop series is a well-established SPE format and helps to facilitate the sharing of experience and identification of any industry issues. WorleyParsons is proud to partner SPE through sponsoring such forums like this which benefits the wider industry."

WorleyParsons receives honorable mention at Enterprise Leadership awards


support to the Australian indigenous community and environmental initiatives such as carbon reduction, bush regeneration and beach clean-up activities.

WorleyParsons acquires Norwegian engineering and fabrication team Rosenberg, a major Norwegian-based supplier of engineering solutions to the Norwegian offshore oil and gas industry, has joined the WorleyParsons business through acquisition. Rosenberg has provided more than 100 years of continuous service to its customers, supplying high quality solutions engineered and constructed at its facilities in Norway’s oil capital, Stavanger. From Stavanger, the company has strategic access to the Norwegian Continental Shelf (NCS) North Sea operations, now the largest offshore market in the world. Rosenberg’s capabilities range from simple fabrication contracts to complex, multidiscipline EPC projects for process modules, complete deck structures and subsea installations, plus offshore maintenance and modification. Operating in a fully-integrated engineering, fabrication and construction environment, Rosenberg has an excellent record of accomplishment in the offshore oil and gas front-end engineering and design, reimbursable EPC, long-term maintenance modifications and operations, subsea fabrication, installation and hook-up markets. Rosenberg has a strong safety culture consistent with our own philosophy of ‘zero harm’.

WorleyParsons has been awarded an Honorable Mention for educational service and commitment to philanthropy at the 2013 Asia-Pacific Enterprise Leadership Awards (APELA). The award recognizes and honors the achievements of enterprise leaders by bringing together some of Asia-Pacific’s best leadership examples in the areas of social, economic and environmental sustainability.

WorleyParsons selected for Forbes’ Asia’s Fabulous 50

WorleyParsons’ commitment to philanthropy was recognized through the collective contribution of AU$2.67 million by the company and AU$1.95 million by employees in support of 340+ corporate responsibility initiatives across 16 countries. These initiatives included: AU$350,000 in academic scholarships, pro bono project management services in Australia and Canada,

WorleyParsons was recently honored by being selected as one of the ‘Fabulous 50’ by the editors of the prestigious Forbes Asia magazine. ‘Fabulous 50’ are widely acknowledged as the best-of-the-best of Asia-Pacific’s biggest publiclytraded companies. They are chosen from a pool of nearly 1,300 companies with at least US$3 billion in annual revenue or market capitalization.

HQ Magazine Office intel

Recent appointments Andy Cole Managing Director— Power and Infrastructure Andy Cole, previously senior vice president responsible for Hydrocarbons subsector development, has been appointed managing director for the Power and Infrastructure division. Andy has been an integral member of the global Hydrocarbons leadership team and will bring his strong strategic and operational knowledge across to his new role. He will lead WorleyParsons in providing solutions to our customers who are increasingly seeking an integrated response to their greenfield and brownfield investments, which involves optimizing the power solutions or minimizing their risk exposure associated with infrastructure and the environment.

Andy Mackintosh Managing Director— Improve Execution WorleyParsons Improve provides a full range of value-added services to customers, focused on brownfield operations through local delivery with global support. Andy Mackintosh will be responsible for the deployment and implementation of our global Improve strategies, stewardship of our global Improve program performance and delivery of WorleyParsons’ operational platform that supports our customers’ operational excellence. Andy has 30 years of global experience and has held senior executive positions in the business line in the UK, Australia and most recently, Canada.

Chris Mole Senior Vice President— Hydrocarbons Subsectors Chris replaces Andy Cole as the senior vice president of global hydracarbons for WorleyParsons. Chris brings nearly 25 years of experience with him to this role, nearly 15 of those have been with WorleyParsons. Chris has made many contributions to WorleyParsons’ LNG business as a member of the LNG global leadership team.

Tom Boon Location Manager— Saudi Arabia and Bahrain Tom has been a key member of the US leadership team for the past four years and brings to his new role 29 years of WorleyParsons experience covering a broad range of projects, including many in Saudi Arabia with its leading energy customers. His knowledge of business in the region and participation in all operational functions is preeminent.

Ravi Srinivas Business Development Director—Sulphur Technology Ravi has joined WorleyParsons in India as a leader within our Sulphur Technology team. He brings significant experience from DuPont Sustainable Solutions where he was Technology and Business Director, which involved the establishment and growth of a technology delivery team in India, among other responsibilities. Ravi has over 24 years of experience in executing oil and gas projects in operations, engineering and commissioning roles and has served many roles in technology licensing and catalyst business development.

HQ Magazine Recent appointments 25

Asia-Pacific Graham Hill Senior Vice President


Canada Mike King Senior Vice President


USA, Caribbean and Latin America Jan Van Willigen Senior Vice President


Europe, Middle East, North Africa & India and Sub-Saharan Africa Jim Osborn Senior Vice President


Sub-Sectors and Business Lines Chris Mole Senior Vice President


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