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DNV GL wins TQ contract with Kogas

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LNG Industry,

DNV GL Korea has received a technology qualification (TQ) contract with Korea Gas Corp. (Kogas) for a FEED package for a 5 million tpy onshore LNG liquefaction plant based on the KSMR™ liquefaction process.

The KSMR™ liquefaction process has been designed for LNG plants and floating LNG (FLNG), due to its compactness. Kogas is constructing a pilot 100 tpd KSMR™ LNG liquefaction plant, to verify the operability and the efficiency at the Incheon LNG receiving terminal in South Korea.

DNV GL has been invited to perform a TQ in line with its 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 technology for onshore application.

Rolf Benjamin Johansen, DNV GL’s Regional Manager for Korea and Japan, said: “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 […] 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.”

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

“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 KSMR™ liquefaction process,” added Johansen.

DNV GL has supported Kogas to set the Qualification Basis, which is the initial stage of the TQ process. This is likely to continue into next year.

The project is part of the LNG Plant R&D initiatives, which was set up by the Ministry of Land, Infrastructure, Transport (MOLIT) and the Korea Agency for Infrastructure Technology Advancement (KAIA). It involves 80 institutions with more than 600 researchers. Kogas was appointed project coordinator 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. The initiative recognised the potential synergy with Korea’s ship building industry to meet the future demand for LNG floating production storage and offloading units (FPSOs).

The Korean government is sponsoring LNG plant R&D initiatives and US$151 million is earmarked for an onshore LNG liquefaction plant and FLNG technology. Successful TQ will be an important factor in establishing confidence in the liquefaction process application to support FLNG technology development. The KSMR™ process will be implemented once it is commercially proven in the market.

Edited from press release by

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