Statoil-technology-LNG.pdf

The Snøhvit project: Technology Development

Tim Dodson, Senior vice president - Technology Arena

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Time1985

Statpipe

1986

Gullfaks

1993

Sleipner

1994

Statfjord satellites

1997

Norne

2001

Glitne

1996

Troll

1999

Åsgard

Platform based

Subsea & floating

Significantstep changes

Snøhvit

2006

Subsea to land

Technology development in StatoilA 20-year history of successful technology implementation

New technology

Technology – the key to future successIncreased focus on meeting central business challenges

Exploration and reservoir management

Well construction

Subsea field development

Environmental technologies

Gas chain management

Tail production

Sub sea IOR

Develop assets

Find HC

New business options

Cost effective, safe and regular operation

Development costs more than halved through technology achievements

0

2

4

6

8

10

12

14

Draugen

Statfjo

rdB

Gullfaks

AStat

fjord

C

Njord

Norne

Kristin

1970 - 1980

2000

2005 . . .

Åsgard

A

Åsgard

B

Snøhvit

Kviteb

jørn

Required CAPEX for 100,000 bbl daily production capacity (NOK bn)

Snøhvit development historyFirst development plan in 1982 ……..

• Based on Frigg field experience:

– Three platforms offshore

– Gas terminal and LNG plant onshore

• 1800 people onshore,1500 offshore during operation vs. current plan: 170 people on Melkøya

• CAPEX estimated to NOK 43 bn (corresponds to 100 bn in 2004 NOK)

…….. substantial CAPEX reduction essential

Snøhvit technologySubstantial R&D and innovation needed

• Four major technology elements:

– Remote controlled subsea systems

– Long distance multiphase flow

– Cost-effective LNG process technology

– Minimize emissions

• Dedicated R&D efforts over 15-25

years have resulted in:

– Significant CAPEX reduction

– State-of-the-art technologies

– International recognition

Remote controlled subsea systemsZero surface solutions – from subsea to the beach

Snøhvit 8 wells + 1 CO2 injectorAlbatross 4 wells, Askeladd 8 wells

Onshore processing and control centre

Multiphase flow lineCO2 pipelineMEG service line Fibre optic cable

Long distance multiphase flowNew world record

Statoil operated

In operationConstruction/planned

Transfer length (km)

Liqu

id R

atio

(bbl

/ M

MSC

FD)

0

10

20

30

40

50

60

70

0 50 100 150 200

Malampaya

MikkelEast Spar

Goldeneye

KuduMensa

Popeye

North Alexandra

Western HubEM

TrollTOGI

Midgard

West deltaCorrib

Current operational limit

Snøhvit

Cost-effective LNG process technologyInnovative and proprietary

60m

”Cold box”

• Key technologies:

– Cost-efficient design and manufacturing of “Spiral Wound Heat Exchanger”

– High-efficiency and flexible “MFC®” LNG process design

• Statoil-Linde LNG Technology Alliance:

– Joint ownership of LNG process and heat exchanger technology

Spiral Wound LNG Heat Exchangers (SWHE)1000 km aluminium tubes – 40000m2 cooling area

• Qualified Linde as supplier of Spiral Wound Heat Exchangers for LNG plants

• Established Linde as competitor to the only previous SWHE supplier

• Several Linde SWHEs purchased by Shell, the world's largest listed supplier of LNG:

– New LNG train on existing north Australian plant

– Replaced old SWHEs in Brunei– Sakhalin LNG project

MFC®(Mixed Fluid Cascade) liquefaction processConverting gas to liquid by cooling to –163oC

GG

NG

LNG

M

M

M

NGL

• Cascade principle with 3 independent cooling circuits with mixed refrigerant in all 3 circuits

• High-efficiency process, with minimal emissions and energy use

• Cost competitive

• More flexibility than any other LNG process

10oC

-163oC

SWHE

-50oC

LNG process technology selection

• Potential conflict of interest for Statoil as operator and ”technology developer”

– LNG process supplier selected by Snøhvit Partners in 2000

• Two alternatives:– APCI propane-precooled mixed refrigerant (C3MR)

– Linde-Statoil mixed fluid cascade (MFC)

• MFC chosen based on technical and commercial criteria such as:– Process adaptability to low cooling water temperature– Ability to produce “lean” LNG for the US market– Robustness of critical components (compressors, heat exchangers)– Experience: C3MR previously unrivalled but MFC based on well-proven cascade

principle. Verification of the spiral wound heat exchangers in Mossel Bay followed by Shell approval of the same heat exchangers provided valuable support for the Snøhvit Partners’ decision

Snøhvit environmental technologiesMinimise emissions through CO2 reinjectionand high-efficiency process

Feedgasinlet

CO2 separationCO2 togeologicalstorage

High-efficiencypower generation

High-efficiencyliquefactionprocess

Snøhvit – technology for the ArcticA benchmark project for offshore and LNG technology

Full subsea field/remote operation Path breaking LNG technology

Record-distance multiphase flow CO2 sequestration and storage

Zero surface solutions – from subsea to the beach

Snøhvit – technology for the ArcticPaving the way for future developments in the Barents Sea

Considerable proven and undiscovered gas resourcesRemote area lacking infrastructureHypersensitive with regard to marine ecosystems and rich fishing grounds

Zero tolerance policy towards environmental harm

Future developments:Extreme-distance multiphase flowIncrease LNG train capacity to 8-9 mtpaSafe and compact plant design

150 km300 km

450 km