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TRANSCRIPT
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The LNG Futures FacilityPhysical & virtual LNG plants for technology
demonstration and industrial training
Professor Eric F. MaySeparations & Sensing Workshop
29th November 2017
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Fluid Science & Resources Division
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Eric May
Mike Johns
BrendanGraham
ZachAman
PaulStanwix
ACADEMIC & RESEARCH STAFF
Gongkui Xiao
2 Mechanical Workshop Technicians ~30 Masters/Honours/Visiting Students
DarrenRowland
Sarah Vogt
EinarFridjonsson
SaifAl Ghafri
Mauricio Ruggeri
John Zhen
Sofia Mylona
Mosayyeb Arjmandi
Peter Metaxas
Masoumeh Akhfash
Nick Ling
Ming Li
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PhD Students (> 30 in 2017)
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MarcoZecca
GhazalAvijegon
KeelanONeill
LisabethWagner
JordanOakley
CoreyBaker
KumariniSeneviratne
BruceNorris
ShaneMorrissy
TomCharlton
ZhikaoLi
NicholasBristow
YahuaQin
ShamsurRaman
Paul Connolly
ArmanSiavashi
FernandoPerez
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FSR LocationsCO2 Research Lab
Located at UWA CrawleyResearch & Teaching
4 www.fsr.ecm.uwa.edu.au
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ARC Training CentreIndustrial Transformation Training Centre Australian Centre for LNG Futures
ARC ITTC awarded in May 2015 & launched in April 2016, first in WA
Nine Industry Partners, 11 Projects$9 million over 5 years
12 Academics, 5 Post Docs & 10 PhDs with industry placements
Objective: cost-effective LNG production, at all scales, in remote or deep-water locations
Flagship Project: Micro Scale LNG Plant RESEARCH | DEMONSTRATION | TRAINING
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Scaling Up Research & TrainingChallenging of scale up from the lab to the real world
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Bench - ScaleMicron - Scale Pilot - Scale
Gas
Sep
arat
ions
Cry
ogen
ic F
luid
sFl
ow A
ssur
ance
No accessible, live environment exists for demonstrating new technologies & processes at industrial scale
No training facility available that uses actual natural gas or high pressures
Globally unique facility for training and deployment: enable commercialisation pathways for innovative technologies from operating companies, contractors/service companies and SMEs
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LNG Futures Facility: Physical plantTraining | Demonstration | Research
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Training utilises a small scale LNG Plant
More & better instrumentation than industrial plants to ensure maximum data quality & rich data sets for training
Also use to qualify Industry 4.0 advancese.g. digital sensing & robotic technologies
Two trains: 1 for training & 1 for researchResearch Facility to provide real fluids for technology demonstration of: New processes (e.g. CO2 H2) New sensors (e.g. heavy HC dropout ) Synergistic operations: membranes +
molecular sieves for amine-free plant
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Research ThemesResearch Themes 1-3 of 6
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Novel material development & advanced separation processesGas Separation Technology
Avoiding solids deposition & maximising productionCryogenic Fluids & Refrigerants
New and improved LNG storage and transportationLNG Storage Systems
Synergistic Operations: smaller footprint dehydration, acid gas and nitrogen removalAdsorption, absorption and membrane processes for subsea & floating operationsMercury capture materials and sensorsHelium capture for additional product streams
Prevention and remediation of BTEX freeze outDemonstration of new, online sensors in live plant environmentOptimisation of refrigerant blends and liquefaction cycles
Demonstration of new storage systems e.g. matrix pressure vesselsVerification of heat transfer data in storage systemsBoil Off Gas recovery systems
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Research ThemesResearch Themes 4-6 of 6
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Predictive analytics and open datasetsData Analytics
Live test environment for roboticsRobotics & Automation
Accelerated Life-cycles Frequent start up and shutdown scenarios
Demonstration and functional testing of real-time data monitoring and analysis platforms e.g. GE PredixDemonstration of automated plan (unmanned response to process upsets)Open datasets case studies for education and research purposesEnhanced, fuller datasets through over instrumentation
Demonstration of ROVs for maintenance and inspection activities
Demonstration and verification of blow down and relief systemsDemonstration of new unit operations, instrumentation and sensorsChemical qualification
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Industry 4.0 TestlabEngagement with PMs Taskforce & Siemens
LNG FF featured in PMs Industry 4.0 Taskforce report: Industry 4.0 Testlabsin Australia
Selected as Australias 2ndTestlab: Siemens Australia to grant UWA specialized software valued at $447 million to enable digital twins of LNG FF.
Senator Cash co-announced $5 million fund to support the development of five Testlabsutilising digital twins.
NERA co-funding will help initiate this process & ensure the LNG FF can access these new federal funds
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TrainingPractical training co-designed with Industry.
Completely new training capability: no training facility that uses live fluids exists.
Holistic training: end-to-end scenario: treatment, liquefaction, storage, regasification, power generation.
Training for the next generation of Operators, Engineers & Contractors.
OPERATORS: an ageing workforce and ongoing growth in the LNG sector will result in a shortage of trained operating personnel (estimated at 3000 operators in the next ten years).
ENGINEERS: work experience, remote control capabilities for integration into course work
MAINTENANCE CONTRACTORS: training and preparation for scheduled plant shutdowns
LIVE PLANT DATA FOR OFF-SITE TRAINING: business model not limited to bodies on site -international market through access to live data 11
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Kwinana Industrial AreaLandcorp recommendation
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KWINANA BULK TERMINAL INDUSTRIAL AREA
Kleenheat Plant
Tianqi Lithium
AMC
PROPOSED LOCATION
Location: Kwinana Industrial Area, 20 30 km south of Perth.National Facility open to students, companies & researchers across Australia & Region67% of Australian gas located off WA coastOver 800 global & local energy, petroleum, equipment, technology & service companies based in Perth
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Business Model (Long Term)Form a Special Purpose Vehicle to own and operate facilities
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Once the facilitys detailed design is finalized, propose establishing an SPV to own, manage and provide governance. Full time trained plant
operators for microscale plant (NOT Academics or PhDs)
Scientists & research engineers run research facility
Separate Training Provider from Vocational Sector (e.g. ACEPT)GE / Clough
Training
GE / Clough
LNG plant
Design and construction
GE / Clough
Research
GE
Financial / Commercial
CloughClough
Operations and maintenance
ACEPT
Training operator
Operations and FM
UWA
Research operator
SPV
Equity
Land
Training
LNG plant
Research
AssetsOwnership Contract
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Funding Model - Government supportResulting in either decreased Industry contributions or increased scope
Equity of $50M
Federal Government = $17.5M CAPEX + $15M OPEX over 10 years (e.g. NCRIS-type arrangement)
State Government provides land at peppercorn rate
On average each equity partner re-pays bank $539k p.a. for 10 years
Equity
Govt.SPV
Partner 1 Partner 2 Partner 3 Partner 4
Bank
Assume 4 equal equity partners, 4% interestBank provides cash flow as required to SPV to establish LNG Futures Facility
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Next Steps: Phase 1 & 2 of Facility DesignEnable progress to Final Investment Decision
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Cost of completing engineering design, securing regulatory & environmental approvals, and SPV legal & financial agreements estimated at $3.5 million
These will be achieved in Phases 1 & 2 of project during 2018 to allow for Final Investment Decision in 2019. SPV only formed if FID approved by all partners.
Phase 1 Funding Secured for Functional Specification & Concept Select: Hyundai Heavy Industries, Shell, Chevron & UWA have each committed $100k Woodside finalising its contribution NERA Growth Centre has approved matching funds $1 million total Siemens software grant central to Phase 1.
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Forward PathMaking the LNG Futures Facility happen
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After completing Phase 1, NERA & industry partners have stage-gate before commencing Phase 2 FEED & Approvals
NERA, Shell, Chevorn & HHI have provisionally committed funds to Phase 2.
SeedFunding
2017 NERA Contract & Siemens Grant Finalised
January 2018 Phase 1 Functional Specification Commences
August 2018 Phase 2 FEED & Approvals Commences
April 2019 FEED complete, Final Investment Decision
September 2020 LNG Futures Facility Operational
Paced schedule to match
industrys current capacity
acceleration possible
Need for Federal Government support to establish open-access facility is virtually certain. Identify possible funding sources: NCRIS, Training?
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THANK YOU
lngfutures.edu.au
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Research Themes
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Novel material development & advanced separation processesGas Separation Technology
Avoiding solids deposition in cryogenic plantCryogenic Fluids
New and improved LNG storage and transportationLNG Storage Systems
Predictive analytics and open datasetsData Analytics
Live test environment for roboticsRobotics & Automation
Accelerated Lifecycling Frequent start up and shutdown scenarios
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Typical Focal Activities & Work Scope FEED & Detail Design
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Phase 1Feasibility & Concept
Phase 3Detailing & Fabrication
Concept Definition1st Half of FEED
System Definition2nd half of FEED
Detail Design - System Detail Design - Global Detail Design and Sub-Contracting
1. Purchase Priority 1 & 2 equi 1. Purchase Priority 3 equipmn1. Issue Design Deliverables2. 15% plot plan review (early) 2. 70% layout Review for fabrication/construction3. Award site preparation contr3. Award Civil Contract 2. Award steel & piping Fab 4. 30% layout review Contracts
3. Award Mech, Steelwork,Piping, E&I Install Contracts
HSE Studies, analysis and Environment Impact Report
Preliminary HSE and safety risk assessment
HSE and safety risk assessment checked
HSE and safety risk assessment frozen
HSE and safety risk assessment complete
Freeze functional requirements, design basis, overall system description and layout
First vendor information for Priority 1 POs incorporated in Layout/3D Model
First vendor information for Priority 2 POs incorporated in design
Frozen vendor information for all POs implemented in System Engineering
System Engineering; P&IDs, Line List, MEL issued for construction
Equipment list, flow diagrams and Single Line Diagram
P&IDs, Line List , Mech Equip List, EIT registers/databases and 3D Model
System Engineering: P&IDs , Mech Equip List, EIT registers/databases and 3D model
P&IDs, Line List, Mech Equip List, EIT registers/databases and 3D model
Procurement; All POs with vendor information implemented and material take off done.Bulk material topping up placed.Supplier package follow up
Layout and unit arrangement finalised
Issue P&IDs for approval Main Process HAZOPs complete and P&IDs Issued For Design
Procurement; All equipment POs awarded, all bulk materials orders placed
Layout and 3D Model ;Detail design completed and Design drawings issued
Construction methods Priority 1 Equipment POs awarded
Procurement: Priority 2 & 3 equipment POs awarded, First bulk material orders placed
Layout and 3D model are Clash free. Ready to issue details. All major interfaces frozen
Subcontracting; Start awarding Priority 2
Site preparation design complete
Subcontracting plan & strategy complete
Subcontracting; 1st priority subcontract issued, 2nd priority subcontracts draft
Subcontracting; 1st priority subcontracts awarded, 2nd priority subcontracts issued
Fabrication/Construction plan and methods finalised. Completion preparation finalised
Finalise completion execution strategies
Fabrication/Construction methods and draft plan
Completion preparation substantially complete
Preliminary Process HAZOP
Pre-qualification Main Sub-Contractors
Prepare and verify project schedule and cost estimate
Prepare Detailed Deliverable Schedule and update current cost estimate
Verify Contract Milestones and Detailed Construction Schedule and update current cost estimate
Milestones and Detailed Construction Schedule verified
Finalise Project Execution Strategy
QA plan established HSE program for engineering and procurement in place
HSE program for construction in place
HSE program for completion in place
Establish class D cost estimate +/-10%
Quantity and weight baseline & trending program
Risk assessment update
FEED Detail Design
Phase 2System Definition
1. Process Definition2. Project scope definition3. +/- 10% Cost estimate
Sheet1
FEEDDetail Design
Phase 1Feasibility & ConceptPhase 2System DefinitionPhase 3Detailing & Fabrication
Concept Definition1st Half of FEEDSystem Definition2nd half of FEEDDetail Design - SystemDetail Design - GlobalDetail Design and Sub-Contracting
1. Process Definition1. Purchase Priority 1 & 2 equipment1. Purchase Priority 3 equipmnt1. Issue Design Deliverables
2. Project scope definition2. 15% plot plan review (early)2. 70% layout Reviewfor fabrication/construction
3. +/- 10% Cost estimate3. Award site preparation contract3. Award Civil Contract2. Award steel & piping Fab
4. 30% layout reviewContracts
3. Award Mech, Steelwork,
Piping, E&I Install Contracts
HSE Studies, analysis and Environment Impact Report Preliminary HSE and safety risk assessmentHSE and safety risk assessment checkedHSE and safety risk assessment frozen HSE and safety risk assessment complete
Freeze functional requirements, design basis, overall system description and layoutFirst vendor information for Priority 1 POs incorporated in Layout/3D ModelFirst vendor information for Priority 2 POs incorporated in designFrozen vendor information for all POs implemented in System EngineeringSystem Engineering; P&IDs, Line List, MEL issued for construction
Equipment list, flow diagrams and Single Line DiagramP&IDs, Line List , Mech Equip List, EIT registers/databases and 3D ModelSystem Engineering: P&IDs , Mech Equip List, EIT registers/databases and 3D model P&IDs, Line List, Mech Equip List, EIT registers/databases and 3D modelProcurement; All POs with vendor information implemented and material take off done.Bulk material topping up placed.Supplier package follow up
Layout and unit arrangement finalisedIssue P&IDs for approvalMain Process HAZOPs complete and P&IDs Issued For DesignProcurement; All equipment POs awarded, all bulk materials orders placed Layout and 3D Model ;Detail design completed and Design drawings issued
Construction methodsPriority 1 Equipment POs awarded Procurement: Priority 2 & 3 equipment POs awarded, First bulk material orders placedLayout and 3D model are Clash free. Ready to issue details. All major interfaces frozenSubcontracting; Start awarding Priority 2
Site preparation design completeSubcontracting plan & strategy completeSubcontracting; 1st priority subcontract issued, 2nd priority subcontracts draftSubcontracting; 1st priority subcontracts awarded, 2nd priority subcontracts issuedFabrication/Construction plan and methods finalised. Completion preparation finalised
Finalise completion execution strategies Fabrication/Construction methods and draft planCompletion preparation substantially complete
Preliminary Process HAZOP
Pre-qualification Main Sub-ContractorsPrepare and verify project schedule and cost estimatePrepare Detailed Deliverable Schedule and update current cost estimateVerify Contract Milestones and Detailed Construction Schedule and update current cost estimateMilestones and Detailed Construction Schedule verified
Finalise Project Execution StrategyQA plan establishedHSE program for engineering and procurement in placeHSE program for construction in placeHSE program for completion in place
Establish class D cost estimate +/-10%Quantity and weight baseline & trending program
Risk assessment update
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Schedule Now to End of FEED & FID
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Overall Project Schedule
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Proposed Funding Model (Long Term)Base plan: funding only from Industry
Equity
SPV
Partner 1 Partner 2 Partner 3 Partner 4
Bank
Equity of $50M = $35M CAPEX + $15M OPEX over 10 years
On average each equity partner re-pays bank $1,541k p.a. for 10 years
Likely to include both Industry and Research partners (e.g. UWA & CSIRO)
Assume 4 equal equity partners, 4% interestBank provides cash flow as required to SPV to establish LNG Futures FacilityModel assumes no financial support from Government and represents the maximum that industry partners will pay
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The LNG Futures FacilityPhysical & virtual LNG plants for technology demonstration and industrial trainingFluid Science & Resources DivisionPhD Students (> 30 in 2017)FSR LocationsARC Training CentreIndustrial Transformation Training CentreScaling Up Research & TrainingChallenging of scale up from the lab to the real worldLNG Futures Facility: Physical plantTraining | Demonstration | ResearchResearch ThemesResearch Themes 1-3 of 6Research ThemesResearch Themes 4-6 of 6Industry 4.0 TestlabEngagement with PMs Taskforce & SiemensSlide Number 11Kwinana Industrial AreaLandcorp recommendationBusiness Model (Long Term)Form a Special Purpose Vehicle to own and operate facilitiesFunding Model - Government supportResulting in either decreased Industry contributions or increased scopeNext Steps: Phase 1 & 2 of Facility DesignEnable progress to Final Investment DecisionForward PathMaking the LNG Futures Facility happenTHANK YOUResearch ThemesTypical Focal Activities & Work Scope FEED & Detail DesignSchedule Now to End of FEED & FIDOverall Project ScheduleProposed Funding Model (Long Term)Base plan: funding only from Industry