INNOVATION January-February 2013

and the impact of the local weather. Each project requires a careful assessment of the trade-offs between field erection and modularization in the construction of LNG plants. Typically, modularization is applied to air-cooler racks, compressor units, power generation units, motor control centres, and moderately sized process packages. Modules of up to 2,500 t have previously been implemented on LNG plants. Quality assurance, quality control, cost overruns and schedule delays are the primary areas of concern for modularization. Increased weight and engineering to maintain the module integrity during shipment have a significant impact on costs. If more than one project is started at the same time, competition for labour and local infrastructure facilities can create additional strains. As well, technology risks need to be carefully weighed when the design envelope is pushed into unproven grounds. Furthermore, selecting the right EPC contractor has become more challenging over the last decade. Engineering personnel mobility between projects has created a situation where a reference list carries less weight in the selection process. Getting the right team is critical to the success of a project; however, given the large number of LNG projects at various stages of development, many projects are unlikely to get the “A” team. This places added oversight burden on the owner to ensure safety, availability, costs and schedule are not compromised. An LNG plant also needs to be a good neighbor to local communities. Therefore, in addition to meeting the siting criteria imposed by the governing code, consideration needs to be given to the impact of noise, flaring, effluents, exclusion zones at marine facilities, and more. Environmental Considerations The LNG industry has made big strides in addressing some of the major environmental issues associated with production. For example, in the past two decades seawater cooling has almost been

The discovery over the last five years of huge shale gas deposits in BC coupled with low natural gas prices motivated gas producers and investors to support LNG export. Major players have now joined the race. Energy suppliers BG Group and Petronas have acquired sites near Prince Rupert and are reported to be carrying out preliminary front-end engineering design work. Shell has acquired a site in Kitimat and is also pursuing the development of an LNG export facility. Both areas offer excellent opportunities for LNG development and Prince Rupert enjoys better access and shorter shipping time to Asian markets. Market conditions, timing and credibility of proponents will ultimately determine how many LNG export facilities will move past final investment decision. Opportunities LNG export from BC opens unlimited opportunities to sell natural gas to markets commanding higher prices. Other benefits would be realised from the development of the LNG export industry. The construction phase for an LNG export facility, lasting 48 months, requires substantial manpower, expected to peak at 2,500–3,000 workers. Subject to availability, most of the construction could be carried out by Canadian labour. On the most recent LNG project, Peru LNG, skilled labour was imported fromThailand. In addition, plant operation would require approximately 200 permanent jobs, and ongoing support services for maintenance would also be needed. Subject to the “local content” provisions in the engineering, procurement and construction (EPC) contract, BC engineers, quality assurance/quality control providers, fabricators and service providers stand to benefit. The greatest benefits to Canada would be derived from LNG plants built onshore. Offshore LNG production is still in its infancy and faces challenging economics. It would also shift engineering and construction jobs overseas. Challenges Although factored in the economic analysis of each project prior to final investment decision, LNG plant owners face uncertainties on labour productivity

completely eliminated and air coolers are now widely used; however, there are still existing environmental concerns, including energy efficiency and air emissions. Through improvements in process design and operating procedures, LNG plant fuel consumption has been reduced over the last three decades from 15% to 9-10% approximately. Some plants have reported higher efficiencies; however, these have not been independently verified. The LNG industry has set a goal of about 7% fuel consumption. The energy consumed is taken as the difference between the energy fed to the plant and the energy shipped as LNG. Air emissions have been and continue to be the most significant environmental issue. Emission sources include: • Gas turbine drivers for the re- frigeration compressors. These represent 80% of the power re- quirements of the plant. Allowing for de-rating and fouling, the effi- ciency of a GE frame 7 gas turbine is less than 30%. • Open cycle turbo-generators. These are typically GE frame 5s, and are used to meet the electrical

A conference to enable a meaningful dialogue about the role of women in science, engineering, and technology. For everyone who wants to be part of the discussion , inclusive of all genders, backgrounds, and professions. Featured Keynote: Dr. Roberta Bondar Neurologist, scientist, educator, photographer, author, and Canada’s first female astronaut

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