1. Managing the Construction of LNG Projects
Presented by
HABIBIE RAZAK, P. ENG., AER
Project Manager, Oil & Gas
Black & Veatch International
Presented for
CAFEO 30
Phnom Penh, 19 December 2012

2. SOLVING THE WORLD’S
COMPLEX CHALLENGES
BLACK & VEATCH CORPORATION
IS A LEADING GLOBAL ENGINEERING,
CONSULTING AND CONSTRUCTION
COMPANY
• Founded in 1915
• Global workforce over 9,500
• More than 100 offices worldwide
• Projects in more than
100 countries on 6 continents
• $2.6 billion in annual revenues in
2011
• Employee-owned corporation
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3. Black & Veatch Corporate Profile
One of Leading EPC Contractors, US Based Company.
•
• Our Mission sets the bar high - Building a World of Difference ®..
• We specialize in these major markets:
 Energy
 Water
 Telecommunications
 Federal
 Management Consulting
Forbes Magazine "500 Largest Private Companies in the United States."
•
•Ranked by Engineering News-Record as the industry’s No. 1 design firm
in both Power and Telecommunications and are consistently in the Top
in Water.
Leaders in more than 20 categories among design firms, contractors a
•
environmental companies worldwide.
• Further information please click www.bv.com
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4. Black & Veatch; Energy Division
• Black & Veatch service offerings include:
1. Conceptual and preliminary engineering
2. Procurement
3. Engineering design
4. Management consulting
5. Construction
6. Asset management
7. Environmental consulting
8. Security design and consulting
Servicing from power generation, power delivery, and oil and gas faciliti
•
we cover the entire range of energy needs.
• We work closely with clients to deliver solutions to their most comple
projects through our commitment to execution excellence, quality and
integrity of service.
• Black & Veatch Oil & Gas Services
 Ammonia/Fertilizers
 Gas Processing
 Gasification
4
 LNG

5. Liquefied Natural Gas (LNG) Overview
• LNG is liquefied natural gas which is condensed to -162 degree Celsius
• LNG is 1/600 times of volume from natural gas. Gas is changed to LNG f
easy transportation.
In this today’s global energy need, LNG/LNG Plants are used and built fo
several applications
• Substitution of diesel. In China and Japan, trucks and buses are current
using LNG
• Natural gas used for power station gas fuel supply
• Gas/LNG can be used for domestic need such as cooking, heating, etc
• Becoming alternative fuel cleaner (green energy) and in some countrie
LNG is becoming cheaper than diesel (fossil fuel)
• Especially for medium to small-scale LNG Plants are advantageous beca
their compact size enables the production of LNG close to the location
where it will be used. This proximity decreases transportation and LNG
product cost for consumers
• The medium to small-scale LNG Plant also allows localized peak-shaving
occur - balancing the availability of natural gas during the high and low
period of demand.
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6. How LNG Plant Works
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7. How LNG Plant Works
Inlet Feed Gas Pipeline
Pretreatment Process (CO2 Removal,
Mixed Refrigerant Make-up
Dehydration & Mercury Removal)
Liquefaction Process
LNG Storage
LNG Loading and Transportation
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8. Black & Veatch PRICO® LNG Liquefaction Technology
• Black & Veatch provides mix refrigerant technology called as PRICO® - Poly
Refrigerant Integrated Cycle Operation process.
• A single mixed refrigerant loop to accomplish the gas liquefaction with a
refrigerant that is a mixture of nitrogen and hydrocarbons ranging from methane
to iso-pentane.
• By using a SMR all equipment items associated with heat exchange refrigeration
loops (cascade process) or two loops as in the propane pre-cooled or double
refrigerant processes are eliminated.
8

9. Why Clients Chose PRICO® Mixed Refrigerant
Liquefaction LNG Technology
PRICO® offers many advantages to clients which are a direct result of our globa
leadership in design and constructing LNG facilities:
• Unsurpassed proven performance in small, mid and large scale facilities
• Guaranteed performance in support of client LNG business model
• Optimized LNG production
• Optimized utility consumption
• Simplified operations
• Maximum flexibility to handle changes in feed gas
• High reliability
• Low cost - no proprietary equipment
• Fewer pieces of equipment compared to competing technologies
• Rapid start-up to full production
• Unsurpassed training
• Full complement of lump sum EPC services with proven track record
• Single point lump sum responsibility and accountability
• Strong balance sheet supported by over 10,000 dedicated global professional
Figure 3 9
LNG Plant Process Flow Diagram

10. BLACK & VEATCH - 50 YEARS OF LNG
LEADERSHIP
Proven PRICO® Technology - Global EPC deliver
• B&V’s patent PRICO® Single Mixed
Refrigerant technology
• 23 global plants in operation
• 15 plants in construction
• Simplified operations = compact plant
• Applied across broad range of sizes
• Short startup time to production
• Cost competitive solution
• Black & Veatch’s Global EPC experience
delivering sustainable solutions
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11. EXMAR EXPORT Floating LNG Project
• Black & Veatch has been a pioneer in the LNG industry since the 196
and will provide engineering and procurement for topside liquefaction
equipment and packages (FLSRU) using its patented PRICO® LN
technology. Black & Veatch will also provide on-site commissioning a
start-up services.
• Once the EXPORT™ has been built, it will be towed from China to
Colombia where it will be owned and operated by EXMAR for Pacific
Rubiales Energy Corporation. The EXPORT™ will be located off the
coast of Colombia. It will begin production at the end of 2014 giving t
country greater access to global LNG import and export markets.
• Wison Offshore & Marine Ltd (Wison) will deliver the overall EPCI an
commissioning to EXMAR. Headquartered in Shanghai, Wison will
construct the facility through its wholly-owned fabrication facility in
Nantong, China.
• A global Black & Veatch team working from offices in several countri
will be supporting Wison on this project.
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12. 7th Annual Asia LNG October 2012
FIRST FLRSU 1212

13. EXMAR EXPORT Floating LNG Project
There are several advantages building offshore LNG liquefaction as follows:
• To provide viable solutions that enable the entire LNG processing value
chain to be based offshore closer to production wellheads. This is a
smarter, faster way to gain market access over similar, previously
proposed projects and it can be redeployed rapidly to other field
locations when required.
• Limited need for land acquisition, no need of land and building permit
which are sometimes complicated, free from community disturbance
during project execution because all pretreatment and liquefaction
components are fabricated in vendor’s workshop and brought to sea for
complete installation.
• Reduce the need for onshore LNG storage with LNG tanks located in the
hull with additional capacity of support a host of LNG storage vessels to
ship large cargoes
• Reduced jetty construction and impact to the local shore lines
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14. Black & Veatch Sep 2012
CHINA LNG PLANTS
Wuhai #1 Erdos Qianyuan
Wuhai #2
Xinjiang
Tianjin
Syngas Hongxing
Bazhou
Lanzhou
Yuanheng
Guang’yuan Xilan
Guang’an Xingyuan
CHINA
Dazhou CNOOC 14

15. LNG Plants in China
Figure 5
Cold Box (Refrigerant Exchanger)
Figure 6
LNG Storage Tank
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16. LNG Plants in China
Guangyuan LNG Plant
Office and Electrical Building
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17. Project Execution Strategy
Black and Veatch can provide total Engineering,
Procurement and Construction (EPC) for all projects. We
work with local contractors to execute the construction led
by B&V construction management team including to
provide all pre-commissioning, commissioning an start-up
services to hand over a complete operating facility
Engineering Stage
B & V provides the engineering work start with Front End
Engineering Design (FEED) to Detailed Engineering Design
(DED) for whole packages consist of:
• Process Engineering
• Rotating and piping engineering
• Electrical engineering
• Instrument & control engineering
• Civil & Structural Engineering
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18. Project Execution Strategy
Procurement Stage
Typical LNG plant major equipment and materials are procured from
and contracted to several vendors/contractor managed by Project
Manager of Black & Veatch consists of:
• The Brazed Aluminum Heat Exchanger (Cold-box) supplied by
multiple qualified vendors;
• The Refrigerant Compressor complete with gearbox and driver
supplied as a package from qualified vendors having experience in
handling mixed refrigerant components including technical field
assistance during installation and commissioning;
• BOG Compressor, Regeneration Gas Compressor and/or Recycle
Gas Compressor globally sourced from qualified suppliers.
• Dehydration, Amine Treating Package supplied by packagers
delivering pre-assembled skids including technical field assistance
during installation and commissioning;
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19. Project Execution Strategy
Procurement Stage (Continued)
• Carbon steel & stainless steel pressure vessels for exchangers,
condensers and any associated drums supplied and fabricated by
respective vendors. Preferred to go with local fabricators subject to
vendor surveillance conducted by B&V procurement and construction
team.
• Piping bulk material including carbon & stainless steel pipe and fittings
supplied by certified manufacturers as per the international standards
and codes such as ASME, ANSI, etc.
• Valves and other special cryogenic special materials by trusted certified
manufacturers as per the international standards & codes.
• All utility systems such as demineralization package, nitrogen package,
flares, emergency power, consumable storage, instrument air, office,
DCS system supplied by different vendors/manufacturers.
• Qualified local or national construction contractors & subcontractors to
provide services for civil, concrete, structures, buildings, mechanical,
electrical, instrumentation and control, fire protection system for
whole LNG plant facilities.
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20. Project Execution Strategy
EPC Project Responsibilities
Black & Veatch manages the entire scope as the EPC contractor to
coordinate the design, procurement and construction performed by
Black & Veatch and its partners, including all suppliers and contractors
who are working for project. A typical project would include the
following:
• Review the design package from each vendor and identify the
interface and the interconnections among them. Project manager
to ensure there are no missed item.
• Manage and coordinate with Black & Veatch construction
management team during project construction, commissioning and
start-up stage.
• Management of subcontractors and suppliers to ensure that all
work is completed to the specification as required by Black &
Veatch and meets all HSE requirements.
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21. Project Execution Strategy
EPC Project Responsibilities (Continued)
Black & Veatch manages the entire scope as the EPC contractor to
coordinate the design, procurement and construction performed by
Black & Veatch and its partners, including all suppliers and contractors
who are working for project. A typical project would include the
following:
• Management of projects to meet planned schedules and within the
agreed financial budgets.
• Ensure financial controls are in place and provide reporting via the
project controls officer that reflects the status of each cost center
under project manager’s control.
• Complete reviews of projects to ensure engineering, risk
management, QA/QC are all being attained and kept at the highest
standard.
• Procure major equipments to ensure all those equipments are
complying with standards and specifications.
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22. Project Execution Strategy
Project Organization Chart
Project Owner/Client
Project Manager
Engineering Procurement Construction
•Process Engineers
•Procurement services Site
Civil/Structural Engineers
•Purchase orders Management,
Piping Engineers
•Vendor Qualification QA/QC
National/Local Contractor
Mechanical Engineers •Expediting Local Procurement
Electrical Engineers
•Traffic and logistics Commissioning and Startup
Instruments and Controls
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23. Project Execution Strategy
WORK BREAKDOWN STRUCTURE (WBS)
WBS is a deliverable oriented hierarchical decomposition of the work to
be executed by project team to accomplish the project objectives and
create the required deliverables. The WBS organizes and defines the
total scope of the project. The WBS subdivides the project work into
smaller, manageable pieces of work, with each descending level of the
WBS representing an increasingly detailed definition of the project
work. Project manager needs to provide the WBS due to some reasons:
o Provides a framework for organizing and managing the approved
project scope
o Helps to ensure that we have defined all the work that makes up
the project
o Provides a framework for planning and controlling cost and
schedule information
o It’s better to be deliberate about planning than rely on luck
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24. Project Execution Strategy
WORK BREAKDOWN STRUCTURE (WBS)
No WORK BREAKDOWN STRUCTURE
1 INLET GAS COMPRESSION
1.1. Construct inlet gas compressor foundation
1.2. Assembly and install inlet gas compressor, complete with motor, gear-box, and related components
1.3. Install inlet gas filter/coalescer
1.4. Install inlet gas compressor discharge cooler
1.5. Install pipelines, valves, fitting and other related accessories within the system
1.6. Install all electrical and instrumentation consist of earthing cables and accessories, electrical cables, field instrument, complete
2 AMINE TREATING PACKAGE
2.1. Install HP natural gas/coalescer
2.2. Install slop Tank
2.3. Install contactor feed/effluent exchanger
2.4. Install amine storage tank
2.5. Install amine contactor
2.6. Install amine flash tank
2.7. Install lean amine charcoal filter
2.8. Install lean amine filter
2.9. Install amine circulation pumps
2.10. Install amine cooler
2.11. Install amine make-up pump
2.12. Install amine sump
2.13. Install amine cooler
2.14. Install amine sump pump
2.15. Install amine stripper
2.16. Install rich/lean exchanger
2.17. Install amine KO drum
2.18. Install stripper reflux condenser
2.19. Install amine booster pumps
2.20. Install stripper reflux pumps
2.21. Install stripper reflux drum
2.22. Install lean amine surge tank
2.23. Install amine reboiler
2.24. Install steam boiler
2.25. Install all piping, valves, fitting, entire amine treating package, complete
Install all electrical and instrumentation consist of earthing cables and accessories, electrical cables, field instrument, 24
2.26.
complete

25. Project Execution Strategy
WORK BREAKDOWN STRUCTURE (WBS)
3 DEHYDRATION SYSTEM
3.1. Install mol sieve filter/separator
3.2. Install dehydrators
3.2. Install dust filters
3.3. Install regeneration gas cooler
3.4. Install regeneration gas separator
3.5. Install mercury removal vessel
3.6. Install carbon dust filters
3.7. Install dehydration water carbon filter
3.8. Install regeneration gas heater
3.9. Install all piping, valves, fitting entire dehydration package, complete
3.10. Install all electrical and instrumentation consist of earthing cables and accessories, electrical cables, field instrument, complete
4 LIQUEFACTION SYSTEM
4.1. Install refrigerant suction drum
4.2. Install refrigerant compressor complete with gear-box, and gas turbine/motor
4.3. Install refrigerant compressor inter-stage cooler
4.4. Install inter-stage KO drum
4.5. Install inter-stage refrigerant pump
4.6. Install refrigerant condenser
4.7. Install refrigerant discharge separator
4.8. Install refrigerant pumps
4.9. Install refrigerant exchanger
4.10. Install LP heavies exchanger
4.11. Install HP heavies exchanger
4.12. Install start-up exchanger
4.13. Install heavies separator
4.14. Install hydrogen flash drum
4.15. Install hydrogen flash heater
4.16. Install nitrogen flash drum
4.17. Install nitrogen flash heater
4.18. Construct LNG impoundment basin
4.19. Install all piping, valves, fitting entire liquefaction system, complete
4.20. Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field instrument,
complete
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26. Project Execution Strategy
WORK BREAKDOWN STRUCTURE (WBS)
5 REFRIGERANT MAKE-UP
5.1. Install refrigerant storage tank
5.2. Install ethylene storage tank
5.3. Install propane unloading pump
5.4. Install propane storage tank
5.5. Install propane drying bed
5.6. Install iso-pentane unloading pump
5.7. Install iso-pentane storage tank
5.8. Install iso-pentane drying bed
5.9. Install all piping, valves, fitting and instrumentation devices entire refrigeration make-up system, complete
5.10. Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field instrument,
complete
6 BOIL-OFF GAS COMPRESSION
6.1. Install BOG reheat exchanger
6.2. Install BOG exchanger
6.3. Install BOG compressor oil coalescer
6.4. Install BOG compressor oil filter
6.5. Install BOG compressor
6.6. Install BOG compressor discharge cooler
6.7. Install BOG compressor oil separator
6.8 Install BOG compressor oil pump
6.9 Install BOG compressor discharge oil filter
6.10. Install BOG compressor oil coalescer
6.11. Install all piping, valves, fitting and instrumentation devices entire boil off gas compression, complete
Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables,field instrument,
6.12.
complete
7 REGEN GAS COMPRESSOR
7.1. Install recycle gas separator
7.2. Install regeneration gas compressor suction scrubber
7.3. Install heavies tank
7.4. Install regeneration gas compressor cooler
7.5. Install regeneration gas compressor inter-stage coolers
7.6. Install regeneration gas compressor inter-stage separators
7.7 Install all piping, valves, fitting and instrumentation devices entire regeneration gas compressor, complete
Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field 26
7.8
instrument, complete

27. Project Execution Strategy
WORK BREAKDOWN STRUCTURE (WBS)
8. FLARE SYSTEM
8.1. Construct LNG storage tank, complete with foundations, bunding, structural steelwork, etc
8.2. Install LNG send-out pumps
3.3. Install flare knock-out drum
8.4. Install warm flare knock-out drum
8.5. Install flare KO drum heater
8.6. Install flare tip
8.7. Install warm flare tip
8.8. Install flare stack
8.9. Install all piping, valves, fitting and instrumentation devices entire flare system, complete
8.10. Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field instrument, complete
9. UTILITY SYSTEM
9.1. Install make-up water pump
9.2. Install make-up water treating
9.3. Construct and install cooling tower, complete
9.4. Install instrument air package
9.5. Install nitrogen package
9.6. Install liquid nitrogen package
Install fire protection system such as pumps (diesel, electric and jockey), hydrants, fire water pipe-line, deluge system, alarm
9.7.
system, etc.
9.8. Install electrical distribution system such as switch-gear, transformers, circuit breakers, switchyard, etc
9.9. Install analyzer system
9.10. Install DCS and run all instrument and control cables entire the LNG plant
Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field instrument for whole
9.11
utility system, complete
10. BUILDINGS
10.1. Construct compressors building complete with overhead crane installation, etc.
10.2. Construct DCS/Centralized control room building
10.3. Construct electrical switch room building
10.4. Construct analyzer building
10.5. Construct office facilities, complete
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28. Project Execution Strategy
WORK BREAKDOWN STRUCTURE (WBS)
11. TRANSFER SYSTEM
11.1. Construct jetty structures
11.2. Construct LNG loading point system
11.3. Construct access road entire LNG plant, LNG tank and LNG jetty area
11.4 Install all piping, valves, fitting and instrumentation devices entire transfer system, complete
Install all electrical and instrumentation, consist of earthing cables and accessories, electrical cables, field instrument for
11.5 whole transfer system, complete
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29. Conclusion
• LNG is becoming competitively to displace oil to decouple cost of
benchmark crude pricing indices. LNG is preferred cleaner fuel in the
hydrocarbon mix since it is environmentally friendly (green energy
campaign).
• By using one refrigeration loop, start-up, operation, and shutdown of
sequential system is eliminated. The PRICO® process offers the lowest
equipment content (lowest cost) of all technologies and the simplicity of a
single operating refrigeration system(technical and economical
perspectives).
• The construction duration of the LNG plant using PRICO® technology can be
done in fast way and shorten the duration of the construction since Black
& Veatch has the proper standard layout for each types of LNG Plants
starting from base-load to peak-shaving types.
• Black & Veatch with PRICO®technology can be easily managing the project
in a proper manner specifically in the development of work breakdown
structure(WBS) for each project because all equipment used in the
projects are typical as project manager can easily refer to previous
projects.
• Black & Veatch is experienced and capable to undertake lump sum EPC
services with proven track record.
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30. Thanks for attention
Regards,
Habibie Razak
Email Address: RazakH@BV.COM
Mobile: +628114207316
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