DNV GL Wins KOGAS TQ Contract

DNV GL Korea, the technical advisor to the oil and gas industry, has been awarded a technology qualification (TQ) contract with Korea Gas Corporation (KOGAS) for a FEED Package for a 5MTPA onshore LNG liquefaction plant based on the innovative KSMR liquefaction process.

KSMR is a new natural gas liquefaction process and is for LNG plants and floating LNG due to its compactness. A pilot KSMR LNG liquefaction plant of 100 tonnes per day is being constructed by KOGAS to verify the operability and the efficiency at the Incheon LNG receiving terminal in Korea.

KOGAS has invited DNV GL to perform a TQ in line with DNV GL’s Recommended Practice DNV-RP-A203. This will provide assistance on the identification and mitigation of areas of uncertainties alongside quantification of the risks associated with application of this novel technology for onshore application.

“Korea is a major oil importing nation and is driving forward plans to increase the share of natural gas in their energy mix, mainly through LNG import,” said Rolf Benjamin Johansen, DNV GL’s Regional Manager for Korea and Japan. “Our experience in the complete lifecycle of LNG production allows us to develop customer-specific solutions from risk management to effective asset operation. Our methodology quantifies and mitigates risks from the earliest project stages.”

In addition to the TQ process, DNV GL will also review the process simulation report of the KSMRTM LNG liquefaction process involving natural gas liquid recovery, liquefaction, end flash and refrigeration, in line with KOGAS design specification.

“As a technical advisor, we deliver a world class systematic process for TQ through the Recommended Practice (RP) DNV-RP-A203,” added Johansen. “The RP describes definite steps to ensure that the new product meets the requirements initially set. Successful completion of the TQ project will enable KOGAS to have a solid reference to secure the FEED package for LNG FPSO topside process based on this new KSMRTM liquefaction process.”

DNV GL has supported KOGAS to set the Qualification Basis which is the initial stage of  the TQ process, which is likely to continue into 2016. As part of the Technology Assessment, a first workshop has been held for the technology categorization and identification of the main challenges and uncertainties related to the novel technology aspects of the KSMRTM process.  The workshop was attended by a multi-discipline team of specialists from KOGAS, Dong Hwa Entec (heat exchanger) and Samsung Techwin (compressor).The next TA workshop is scheduled for May 2015 at KOGAS’ Incheon LNG Terminal where the KSMRTM pilot plant is located.

The project is part of the LNG Plant R&D initiatives which was set up by MOLIT (Ministry of Land, Infrastructure, Transport) and KAIA (Korea Agency for Infrastructure Technology Advancement) and involves 80 institutions with more than 600 researchers. KOGAS was appointed project co-ordinator and host in 2008.

The vision of the LNG Plant R&D initiative is to reduce Korea’s reliance on overseas LNG technology and equipment and to instigate the creation of local capability to meet a growing export market. In particular, the initiative recognised the potential synergy with the strong Korean ship building industry to meet the future demand for LNG FPSOs.

The Korean government is sponsoring LNG plant R&D initiatives and USD 151M is earmarked for an onshore LNG liquefaction plant and FLNG technology, of which the core technology is the KSMRTM liquefaction process. Successful TQ will be an important factor in establishing  confidence in the KSMRTM process application to support FLNG technology development.  The KSMRTM process will be implemented once it is commercially proven in the market.