Sanjay Verma, Wärtsilä: Efficient power solution for Floating LNG

Efficient Power Solution For Floating LNG

The FLNG Forum

Sanjay Verma - Area Sales Director

3rd- 4th Dec 2013

December 4, 2013 Efficient energy for Offshore Production units 1 © Wärtsilä

Agenda

• Introduction to Wartsila

• Setting the Scene – Why Change?

• Efficient Energy

• References

• Operation & Management

• Condition based maintenance

• Comparison

• Conclusion


Financial Highlights

4.12.2013 Efficient energy for Offshore Production units 3 © Wärtsilä

MEUR 2012 2011 2010 2009

Order intake 4 940 4 516 4 005 3 291

Order book at the end of the period 4 492 4 007 3 795 4 491

Net sales 4 725 4 209 4 553 5 260

Operating result1 515 469 487 638

% of net sales1 10.9 11.1 10.7 12.1

Earnings/share, EUR 1.72 1.44 1.96 1.97

Wärtsilä – Overview

22,000 professionals

Marine/

offshore Energy

Solutions for

• Listed in Helsinki

4 December 2013 4 © Wärtsilä Efficient energy for Offshore Production units

• Listed in Helsinki

Ship Power

26% (34) Power Plants

34% (31)

Services

40% (35)

5 © Wärtsilä

Exploration &

development

Production

FPSO

Flare recovery

Oil separation

LNG carrier

LNG liquefaction

& terminal

LNG terminal & Regasification

(FSRU/JRU) Distribution & transport

Power generation

LNG bunkering

& barges

LPG/LEG/LNG tanker

LNG fuelled vessels

Small-scale

LNG plants

LNG fuelled

vessels

Oil tanker

with VOC

Wartsila expertise in the Oil & Gas value chain

Exploration &

Drilling

Production &

liquefaction

Transport &

storage

Receiving

terminals &

regasification

Distribution &

transport to the

users

• LNG fuel gas

systems for OSVs

• LNG fuel gas systems

• LPG, LEG & LNG

cargo handling

• On- & Offshore small

scale liquefaction

• Antiflaring/VOC

• Oil separation

• Gas FPSO

• Jetty & Floating

regasification

• Bunkering & barges

• Receiving terminals

• Gas/LNG

distribution/logistics

• Feed gas to Power

plants

LNG receiving

terminal

Liquefaction

Liquids extraction

LNG reliq

Pre-treatment LPG reliq

Wärtsilä Pumps for FLNGs

Wärtsilä can supply a wide range of pump solutions for FLNGs, such as:

• Electric driven deepwell condensate oil pumps (API 610 VS1 or VS4)

• Electric driven deepwell process pumps (API 610 VS1 or VS4)

• Ballast Pumps (submerged or pump room)

• Sea water lift pumps (VS1 or in-line)

• Diesel driven fire water pump packages

04 December 2013 WÄRTSILÄ Hamworthy 7 © Wärtsilä

Products and Solutions for Offshore Production

May 24, 2012 8 © Wärtsilä Efficient energy for Offshore Production units

• Engines – propulsion and gensets

• Thrusters and propulsors

• Power distribution

• Automation

• Engine room pumps

• Pump room systems

• Seawater lift pumps

• Deepwell cargo / offloading pumps

• Firewater pumps

• Inert gas and nitrogen systems

• Hydrocarbon blanketing systems

• Oil separation

• Flare gas recovery

• Waste treatment systems

• Sea water valves

• Wartsila Gas Reformer

Wartsila provides Life Cycle Support

to all its Customers through our

service centers around the globe

04 December 2013 Presentation name / Author, Document ID: 9 © Wärtsilä

OFFSHORE Flow Solutions Oil and Gas Solutions

Type DWP FWPP ERP PRS LNG LPG Drives Electrical GR DF DG IGG Thrusters

FLNG √ √ √ √ √ √

√

√

√

√

√

√

FPSO

√ √ √ √ √ √ √

√

√ √

√

√

WÄRTSILÄ OFFSHORE – FPSO & FLNG

Setting the Scene

Why Change?

Fuel/Energy Efficiency is an important aspect to utilize our resources

in the best possible manner with minimum impact on our environment

•Do we have an alternative?

•CapEx ?

•OpEx ?

•Reliability?

•Maintainability?

•Ease of Operation?

4 December 2013 Efficient energy for Offshore Production units 10 © Wärtsilä

Setting the Scene

Why has fuel flexibility, efficiency and emission level requirement has little

impact on power solutions in the offshore industry ?

•Gas was previously not seen as an asset due to the significant

infrastructure required to utilize it

•Dual fuel alternatives was in the early days not an alternative

•References are seen as a key “must have” when going into the oil & gas

market

•The oil & gas offshore market is conservative and introduction of new

solutions takes many years

•Environmental requirements were not so stringent


Setting the Scene

• Today there exist an alternative solution

with the required reliability and it is

“Reciprocating Dual Fuel Engines” which

provide fuel flexibility, better efficiency and

reduced emissions level

• Has predictive maintenance Op-Ex

• The solution is especially attractive for

reservoir with little gas or where the gas has

a sales value

• Meets or surpasses the Environmental

requirements

• Can run on Multi Fuel

– Gas, Crude, Heavy Fuel, Diesel


Dual Fuel/Gas & Crude Oil Engine Technologies

Gas-diesel (GD) engines:

• Runs on various gas / diesel

mixtures or alternatively on diesel.

• Combustion of gas, diesel and air

mixture in Diesel cycle.

• High-pressure gas injection.

Dual-fuel (DF) engines:

• Runs on gas with 1% diesel (gas

mode) or alternatively on diesel

(diesel mode).

• Combustion of gas and air mixture in

Otto cycle, triggered by pilot diesel

injection (gas mode), or alternatively

combustion of diesel and air mixture

in Diesel cycle (diesel mode).

• Low-pressure gas admission.

Spark-ignition gas (SG) engines:

• Runs only on gas.

• Combustion of gas and air mixture in

Otto cycle, triggered by spark plug

ignition.

• Low-pressure gas admission.

‘87 … ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12

Dual-fuel (DF) engines – Multiple fuel engines

Spark-ignition gas (SG) engines

Gas-diesel (GD) engines

34DF

50DF

20DF

0 5 10 15

20V34DF

12V34DF

9L34DF

6L34DF

16V34DF

18V50DF 17.55 MW

16V50DF

12V50DF

9L50DF

8L50DF

6L50DF

9L20DF

8L20DF

6L20DF 1.0 MW

Dual-Fuel Engine Portfolio

Duel fuel Engines Efficiency

• The available power for a

duel fuel reciprocating

engine is constant for an

ambient temperature of less

than approximately 45

degrees

• The available power for a

gas turbo generator is highly

depended on the ambient

temperature

16

©

Wärtsilä

6000

8000

10000

12000

14000

16000

18000

20 30 40 50 60 70 80 90 100

Load [%]

Heat

rate

[kJ/k

Wh

]

Typical gas turbine efficiency versus Wärtsilä 50DF

Wärtsilä 50DF versus Gas Turbine at 35ºC

Wärtsilä DF engine do not face the same challenges in tropical

environment !

Gas Turbine

Wärtsilä 50DF

High efficiency

Low efficiency

Gas turbine and Wärtsilä DF gensets

Specific fuel consumption

Temperature

[ºC] Output (% of the MCR output

in 15ºC, i.e. ISO conditions)

SFOC

[g/kWhr]

SFOC

[g/kWeh]

Max.

power limit

Wärtsilä DF genset

Gas turbine genset

Note: large difference

in low load operation

For example:

At 25°C -60%MCR:

DF: abt 225 g/kWeh

GT: abt 310 g/kWeh

04 December 2013

W12V34DF vs. 7 MW Gas Turbine

Operating Modes for DF Technology

• Gas mode

– Natural gas + MDO pilot

– Automatic and instant trip to diesel operation in alarm/emergency situation

– Transfer to diesel operation at any load on request

• Diesel mode

– MDO/HFO/crude + MDO pilot

– Operated as an ordinary diesel engine

– Transfer to gas operation at any load below 80%

– Pilot fuel injection in operation also during diesel mode operation

• Transfer between modes without power interruption

Gas mode Diesel mode

80%

100%

Engine

Load

0%

Typical plant efficiency at full output

Small

Size Gas

Turbine

Big Size

Gas Turbine

Big Size DF

Engine

30%

37 %

48%

Typical shaft efficiencies - simple cycle prime movers –

No de-rating due to ambient temperature

35 % Power

available in exhaust

gas that can be

recovered as steam

or hot Water/Oil

© Wärtsilä

Dual-Fuel applications - References

Power

Plants

DF Power Plant

64 installations

331 engines

Output 4040 MW

Online since1997

Merchant

LNGC

• 129 vessels

• 519 engines

Multigas Carrier

• 5 vessels

• 20 engines

Conversion

• 1 Chem. Tanker

Offshore

OSV’s

• 20 vessels

• 66 engines

Production

• 1 platform

• 8 FPSO’s

• 1 FSO

• 33 engines

New orders:

• Harvey Gulf;

6 LNG-PSV in

Gulf of Mexico

Cruise

and Ferry

LNG Cruise ferry

• 1 vessels

• 4 engines

• Complete gas

train

LNG ferries

• 2 ferries

• 8 engines

• Complete gas

train

Navy

Coastal Patrol

• DF-propulsion

• DF main and

auxiliary

engines

Others

TUG

• 2 vessel

• 2 engines each

• Mechanical

drive

Guide Ship

• 1 vessel /engine

IWW

• 2 vessel

• 3 engines

6 segments >230 installations > 7’000’000 running hours

http://www.vikinggrace.com/wordpress/wp-content/uploads/2012/02/Viking_Grace_taking_shape_940x447.png

35 MW x 3 Modules for P-63 FPSO


6 x Wartsila 18V50DF

COSCO Shipyard Dalian

3 Modules of 35 MW each (2 x 18V50 DF DG Sets)

Initial operation on gas and subsequently on crude

Order by Quip for Petrobras Papa Terra 63 field for Brazil.

04 December 2013 Corporate Presentation 22 © Wärtsilä

Duel Fuel Engines installed in Hull

• Power plant can be housed below decks –

frees up large topside space

• Conventional “engine room design”

• No need for large suction air ducts or

discharge

• Low radiated heat in engine room

• Noise level according to IMO

• No requirement for essentials (also valid for

topside installed engines)


Operational Experience with Dual Fuel Engines

• The Wärtsilä DF engines have now been in commercial operation since

1997. Experience from > 7,000,000 engine running hours have been

collected

• The DF engines has met or exceeded the requirements in terms of:

Reliability, Functionality and Engine performance

– Efficiency > 48% in gas mode

– Fuel back up operation instantly

– Low emissions

– Meet predicted overhaul intervals

• Because of the excellent operational experience Wartsila is willing to

sign long term service & operational contracts preferable based on our

Conditioning based monitoring concept

– The client will have a low and predictable OPEX for the engines


No essential generators needed

25 © Wärtsilä

ABS: It is assumed you are referring to essential generators and not emergency generators.

Provided the main generators meet the following requirements essential generators may be omitted

provided Flag and Coastal State permission is granted.

i) There must be a minimum of two separate spaces separated by at least a fire rated boundary.

ii) These two spaces must each be capable of delivering 100% of the required essential service.

iii) Each space must be provided with separate and distinct services - no commonality will be

permitted e.g. fuel supply, cooling water, fire protection, switch boards, power distribution.

iv) The generators are to be designed such that they will continue to operate at the worst damage

inclination.

Regards,

Mark Tipping

London Engineering Department

ABS Europe Ltd

DNV:

Dear Sir

We do agree. There is no need for an "essential" generator as long as the dual feed generator will do a

start up on its diesel fuel after a blackout.

Best regard

for Det Norske Veritas AS

Inboard demountable thruster

Patent pending

INTERNAL USE ONLY / CONFIDENTIAL

History

History Lips Modular Thruster:

● 1967: first Lips Modular Thrusters (900 kW)

● 1972: first containerised thrusters (1470 kW)

● 1976: first retractable thrusters (2230 kW)

● 1977: first thrusters with controllable pitch propellers

● 1981: first underwater de-mountable thrusters (3000 kW)

● 1998: first delivery of the largest retractable thrusters in the world (5550 kW)

2001: first delivery of new LIPS Compact Thruster design, max 3.000 kW

● 2004: first order thrusters with pulling propellers (5100 kW)

● 2008 introduction of inboard (submerged) demountable thruster design

LMT designs are based on continuous operation at full load

28 © Wärtsilä 04

December 2013

O&M Agreements

29 © Wärtsilä 04 December 2013

• Over 1800 employees

• 228 installations

• 160 O&M agreements

• in 30 different countries

• (updated 19.11.2009)

North

America

259 MW

Europe

122 MW Middle East

1189 MW

India

879 MW Africa

805 MW South America

1239 MW

Asia

319 MW

Total of 4 812 MW under contract

Marine 112 ships under agreements

Wärtsilä O&M references (11/2009) 4 812 MW under contract

WÄRTSILÄ 50DF REFERENCES

Till today 36 x LNGC have been

delivered with Wärtsilä 50DF.

Total of 62 LNGC on order

Total of 8 LNGC customer not

known bought on speculation

from yard

Service agreements Signed is 22

LNGC ready for signature today

is 15 LNGC legal negotiations

Success rate is 60% of service

agreements signature 2010 to

2011 for LNG section

Wärtsilä’s Service Agreement types

Supply

Agreements

Technical

Management

Maintenance

Agreements

Asset

Management

• Manpower & Parts

• Performance

Guarantee

• Global Coordination

& Supply

• Manpower

• Spare Parts

• Workshops

• Online Solutions

• Dynamic Maintce

Planning

• Risk Evaluation

• Inspection

• Training and

competences

• Planning support

• Operations &

Maintenance

• Part Crew

• Equipment

• Installation

32 © Wärtsilä

Asset crew Concept

Maintenance

Crew Centralised

Management

Onboard

Crew

Spare

parts

Condition Based Maintenance Concept

Dynamic Maintenance Planning Wärtsilä 24/7 Concept


CASE STUDY Power Generator Selection 70 MW - 1/3

Model

EQP

No.

Budget Price

(MMUS$)per

Unit(Total)

Heat Rate@

Normal Load

(kJ/kWh)

FG Cost

(MM US$/y) (*2)

20 years

FG Cost

(MM US$) (*2)

Total CAPEX &

OPEX

(MMUS$)

GE

PGT 25+G4 4+1

(5)

13.0

(65.0)

11,752 27.2 544 609.0

RR

RB211GT61 4+1

(5)

12.7

(63.5)

11,269 26.1 522 585.5

Wartsila

18V50DF 5+1

(6)

9.3

(55.8)

7,751 (*1)

17.9 358 414.1

1) FG cost: 4.8 US$/MMBTU

2) The above costs and foot print of Gas Turbines are market estimates

3) Foot print area does not cover the foot print required for additional skids (Superheat module, gas

pressure module & also gas accumulators)

Model

Driver

Type

ISO

Rated

(kW)

Site

Rated

(kW)

Number

Required

Foot Print

per Unit

Total

Foot Print

(m2)

Experience

GE

PGT 25+G4

Gas

Turbine

33,057 24,800 4+1

(5)

22mLx5mW

x5

550 Onshore / Offshore

RR

RB211GT61

Gas

Turbine

32,135 25,400 4+1

(5)

NA NA

Onshore / Offshore

Wartsila

18V50DF

Gas

Engine

16,500 16,500 5+1

(6)

19mLx5mW

x6

570 Onshore /

Offshore


Gas Turbine Gas Engine

(Dual Fuel)

Installation Top Side Hull

Fuel Gas Pressure High Pressure

45 barg

Low Pressure

6 barg

Fuel Gas dryness +28 oC Superheated No requirement

Switching fuel from gas

to diesel

Gradual controlled change

(30 – 60 seconds)

Instant change

Pilot oil Not required Required

(1% of energy consumption)


PGT25+G4

Reliability and Availability


Generator

Number

Maintenance

Cost (US$/Fired

hr/unit) (*1)

Maintenance Cost

(MMUS$/20years

/unit)

Total Maintenance

Cost

(MMUS$/20years)

PGT25+G4 4+1 215 37.7 150.7

18V50DF 5+1 107 18.8 112.8

COMPARISON OF MAINTENANCE

*1) Spare parts & Labor Costs (not including transportation)

2) Market estimates used for Gas Turbine

•Total Saving for 20 years Cap Ex + Op Ex = 208.3 MUSD

• Added saving of about 10 - 15 MUSD on Essential DG Sets Cap Ex & Op Ex

• Freeing up of approx 550 Sq Met due to installation of power plant in the Hull.

The above figures of Gas Turbines are based on Market Estimates

We request you to make your own comparison, when making a selection.

38 © Wärtsilä 04 December 2013 Presentation name / Author Sanjay Verma

Wouldn’t you

like this as a

free area for

easier topside

layout?

Dual Fuel Versus Gas Turbine

• With DF engine based power solution:

– No derating due to Ambient temperature

– No derating due to Turbine blade fouling (up to 5%)

– No derating or Gear Losses (Approx 2 %)

– No Exhaust system losses (2-3% depending on back pressure)

– No inlet air system losses (2-3%)and costly air filtration system

– No Fuel Gas superheat module required

– Startup load and time much lower for DF Engines

– In addition Wartsila solution do not require costly fuel system and can

run on lower grade of Diesel for liquid fuel.

– Wartsila DF engines are less sensitive to H2S in fuel gas.

– Possibility of having WHRU (approx 35% of generated power is

available as heat power)

– Crude Oil Operation is possible with DF Engines

04 December 2013

Summary

For the New Build FPSO & FLNG we propose:

– Wartsila DF in engine room maximum space utilization. Shipyard fully familiar

with this installation (LNG Carriers)

– Do you still need the Essential DG sets?

– This frees up large space on deck for process modules.

– Much easier to design the E/R and optimize it at an early stage of design.

– Korean Yards very familiar with LNG carriers and have used DF engines for

the construction of over 250 ships.

– CAPEX & OPEX saving

– All maintenance in situ by operation team.

04 December 2013

04 December 2013 Corporate Presentation 41 © Wärtsilä

42 © Wärtsilä

Conclusion


Dual Fuel Reciprocating Engines Offer:

- Lower overall Cap Ex & Op Ex

- Reduced emission

- High efficiency

- Excellent Reliability & Maintainability

- Reduced topside foot print

- Multi Fuel Operation

Thank you for your attention

Business

Sanjay Verma, Wärtsilä: Efficient power solution for Floating LNG