Success through planning and risk mitigation

There is more than one means to contain liquid and vapour in an LNG tank. In fact, the industry has standardised several configurations, such as single containment and full containment. Operational integrity of LNG facilities relies on the foundation set in codes and standards that dictate engineering designs and material specifications for constructing storage tanks and related equipment. These guidelines serve as a crucial layer of protection, ensuring facilities maintain safe containment of LNG, thus allowing companies to mitigate risks, safeguard personnel, and uphold reliable operations. In the full containment configuration, the secondary containment serves as an additional layer of protection against potential leaks or spills, providing a safeguard in the event of primary liquid containment failure. The secondary container is engineered to prevent the spread of LNG beyond the primary area, either by installing a barrier (such as a dike or berm), or alternatively by utilising an outer tank surrounding the inner tank, which can also be designed to contain the vapour and the liquid.

The selection of a tank system’s configuration has a significant impact on the facility siting. Facility codes such as NFPA 59A (Standard for the Production, Storage, and Handling of Liquefied Natural Gas) have siting requirements, including separation distances from the storage tank to the facility property lines, that are dependent on the selected tank system concept, e.g. single, double, or full containment system. A full containment tank system allows the most compact facility siting and land utilisation, since the secondary container serves as an impoundment for both LNG liquid and vapours in case of a primary liquid container leak.

Plot size available for construction and siting of the facility are important factors for engineering design and constructability. Process design requirements (such as flow rates, operating pressures, etc.) must also be considered, as well as local regulations established by the Authority Having Jurisdiction (AHJ), community, state, or country. Finally, industry codes and standards establish important requirements for any project.

CB&I’s project delivery model ensures high-quality and cost-effective solutions for projects. Many customers draw on the company’s deep knowledge and extensive LNG experience early in a project’s development, allowing us to provide input, recommendations, and project-specific solutions that enhance the long-term value of the facility. Its integrated EPC resources enable us to self-perform all aspects of the project, from conceptual design to tank commissioning. This translates into low-risk and high-value LNG storage solutions for the company’s customers.

Early engagement: A key to success

Early involvement of a storage EPC contractor and open collaboration between the contractor and owner opens more opportunities to explore innovative approaches and select the optimal design and in-built safeguards. Late engagement of the contractor often results in additional cost and longer schedules due to missed opportunities to influence early decisions that shape the project development and execution.

Early engagement also offers more opportunities to explore innovative approaches to material selection, supply chain, construction methodologies, and commercial models in partnership with customers. This is more important than ever with the recent rising global costs impacting all aspects of the EPC project lifecycle. By prioritising early engagement, CB&I supports customers by providing lower cost and shorter time to market on storage solutions.

Terms like engineering study, FEED, pre-project planning (PPP), front end loading (FEL), feasibility analysis, and early project planning are often used interchangeably, reflecting various stages of project development. An engineering study typically involves an analysis of project requirements, feasibility, and preliminary design options. FEED, on the other hand, goes deeper into the engineering phase, refining concepts and providing detailed designs and cost estimates. PPP encompasses the initial stages of project development, focusing on defining project scope, objectives, and requirements. While FEL emphasises early project planning, aiming to minimise risks and uncertainties before full scale project execution. These terms collectively represent the iterative process of project development, from initial concept to detailed design and planning. The LNG storage tank capacity, configuration and containment type are typically finalised during these phases of early engagement. Some key activities include finalisation of the facility layout and plot plan, thorough geotechnical investigation, a preliminary process design, and facility hazard risk assessment.

Enjoyed what you've read so far? Read the full article and the rest of the April issue of LNG Industry by registering today for free!

And make sure to check out the June issue for Part 2 of the article.

Read the article online at: https://www.lngindustry.com/special-reports/09042024/success-through-planning-and-risk-mitigation/