Keeping up with EPC demands

Keeping up with EPC demands

Since the drop in oil prices, clients are increasingly seeking innovative
project solutions, and performance accountability from contractors to
deliver the capital efficiency they need for projects to move forward. As
such, Fluor's offices in the Philippines are responding to this challenge by
developing innovative, capital efficient solutions for two strategically
important projects in Southeast Asia.

These include the Malampaya Phase 3 project operated by Shell Philippines
Exploration, B.V (SPEX) on behalf of the Malampaya joint venture partners
Chevron Malampaya LLC and Philippine National Oil Co. Exploration Corp., and
the Singapore LNG Terminal 1 project.

The Malampaya Phase 3 project about 50km off the coast of Palawan Island in
the western section of the Philippines is a strategically important project
for the country. The gas field is the country's largest energy source,
providing continuous power to a third of the homes and businesses on the
main island of Luzon.

The natural pressure depletion of gas in the reservoir at Malampaya required
a compression platform to be installed during the field life in order to
maintain production plateau from the existing wells as was anticipated in
the original field development plan.

With this in mind, SPEX reached out to Fluor for Phase 3, which include the
design, fabrication and installation of a new offshore depletion compression
platform adjacent to the existing shallow water platform.

The depletion compression platform, with gas-turbine-driven compressors and
various supporting equipment, maximizes gas recovery from the reservoir and
maintains production levels as reservoir pressure drops and gas is depleted.

With a production capacity of 550 MMcf/d of compressed gas, the field can
continue to provide the critically needed levels of gas to support the
Philippines' power generation needs.

With engineering and procurement led from Fluor's offices in the
Philippines, Fluor performed front-end engineering, detailed engineering,
procurement and construction support for the depletion compression platform
as well as modifications to the existing platform.

Fluor also provided engineering support and material management for onshore
and offshore fabrication, prepared work scopes for transportation and
installation and improved integration and collaboration between phases.

The platform is located on the Pacific Ring of Fire, along the typhoon belt,
making the location prone to earthquakes and typhoons, creating unique
design and procurement challenges.

With location in mind, the project's piping and structural features needed
to withstand 100-year storm and 1000-year earthquake conditions. These
design criteria added an additional layer of complexity.

The depletion compression platform used a novel self-installing platform
concept and gravity base foundation design to accommodate the extreme site
conditions. This type of design was unique, and only a handful of these
types of platforms have been installed around the world.

The depletion compression platform is bridge linked to the shallow water
platform with more than a meter of relative movement between the platforms
during extreme weather. The design team ensured that all the process,
utility, power and control systems tie-ins between the two platforms that
are routed across the bridge could accommodate the movement.

The platform operates as an unmanned facility with its operations run
remotely from the adjacent shallow water platform. Due to the criticality of
the platform, and the requirements of the gas sales contract, the facility
has availability approaching 100%, and brownfield tie-in activities during
construction were well planned to minimize interruption to the adjacent
shallow water platform.

The limited number of offshore projects in the Philippines also yielded a
challenge in terms of access to installation vessels. Through the
self-installation platform design, the team mitigated this challenge and
successfully demonstrated a technique that can be used on future projects
without the reliance on heavy lift vessels. During installation, the
platform was towed offshore and the legs were jacked down to elevate the
platform.

Fluor and Shell team members were integrated from the beginning of the
project, and the project team seamlessly rolled from front-end engineering
to detailed design. The team was aligned on the project goals with one of
those goals being to maximize the local supply chain.

Malampaya Phase 3 was the first offshore project ever designed and
fabricated in the Philippines. With the collaboration between Shell and
Fluor, Phase 3 was completed safely, ahead of schedule. Gas from Malampaya
continues to fuel three power stations with a combined capacity of 2700 MW.
Singapore LNG Terminal 1

Singapore LNG Terminal.

Singapore LNG Corp. was incorporated by the Energy Market Authority of
Singapore to develop, build, own and operate Singapore's first liquefied
natural gas (LNG) terminal on Jurong Island. The terminal receives LNG from
carriers, which is stored and pumped to high pressure before being vaporized
and discharged to pipelines for delivery to end users.

The terminal is being developed in several phases, with the initial phases
completed and in successful commercial operation since May 2013. The latest
phase - Phase 3 - is currently in the engineering, procurement and
construction stage.

The terminal started operations with two storage tanks, one jetty and an
initial throughput capacity of 3.5 MTPA. Installation of a third tank, a
second jetty and additional regasification facilities to increase the
terminal's throughput capacity to 6 MTPA were completed in early 2014.

Phase 3 will see the addition of a fourth tank and facilities to bring the
terminal's throughput capacity to about 11 MTPA by 2018. The terminal's
facilities are capable of servicing the largest LNG carriers in the world.

Fluor is providing detailed engineering for the balance of the plant as well
as operational readiness and construction support services for engineering
to Samsung C&T, who is serving as the main engineering, procurement and
construction contractor.

In executing the engineering phase, Fluor has worked alongside Singapore LNG
and Samsung C&T to design this world-class facility. All engineering and
construction support services are led from Fluor's Manila, Philippines
office, the first LNG regasification facility fully led out of that office.

The project is leveraging Fluor's NEXTGENERATION Project Execution
Solutions, which integrates the project environment and includes 3D
technologies, coupling of 2D and 3D information and advanced integrated work
processes.

The Singapore LNG Terminal has been recognized externally for engineering
excellence, achievement and innovation, including the Institution of
Engineers Singapore (IES) Prestigious Engineering Achievement Award 2014,
the ASEAN Outstanding Engineering Achievement Awards 2014 and the IChemE
Singapore 2013 Award for Process Safety.

Currently, Fluor is completing Phase 3 engineering activities and has begun
mobilizing follow-on construction support at the site with construction
expected to complete in 2018.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com