China LNG Receiving Terminal Projects and Standardization Progress CNOOC Experience

Xing, Yun
CNOOC Gas & Power Ltd 2007.11.5

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Contents
1. Introduction 2. The Progress of LNG Receiving Terminals in CNOOC 3. The Progress of LNG Standardization in China 4. Summary
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1. LNG Terminals in China

China LNG importing Projects began in 1995. At that time, China National Offshore Oil Corp. (CNOOC) was appointed by State Planning Commission (SPC, now NDRC) to draw up the national LNG programming. In December 1996, by yearlong careful investigation, CNOOC delivered a report about the utilization and programming of LNG in southeast coastal area. After 10 years of development, on June 28th 2006, Guangdong DaPeng LNG project ( Phase I ) began operating, which indicated the new age of importing LNG in a large scale is coming.
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1. LNG Terminals in China

At present, more than 10 LNG receiving terminal projects are being implemented, planned and speculated. These receiving terminals locate in Guangdong, Fujian, Shanghai, Hainan, Zhejiang, Jiangsu, Shandong, Liaoning, Hebei province, respectively.

i

Pearl River Mouth Basin Basin

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Basin

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Contents
1. Introduction 2. The Progress of LNG Receiving Terminals in CNOOC 3. The Progress of LNG Standardization in China 4. Summary
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2.Progress of LNG Terminals in CNOOC

Existing/Under construction/Planned Terminals
No. 1 2 3 4 5 6 7 8 9 Location/Project Guangdong Dapeng Fujian Shanghai Zhejiang Zhuhai Hainan Liaoning Yingkou integrate project East of Guangdong integrate project Shenzhen 2nd LNG project Capacity (MTPA) 3.7 2.6 3 3 3 2 3 2.5 2
commercial operation

2006.9 2007 machine completion 2009 2011 2012 2012 2013 2012 2013

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2.Progress of LNG Terminals in CNOOC

1. Guangdong Dapeng LNG Project
LNG resource from ALNG, Australia

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2. Progress of LNG Terminals in CNOOC

1. Guangdong Dapeng LNG Project
Phase I Investment 3.7 MTPA RMB 7.14 Billion

CNOOC G&P

33%
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2. Progress of LNG Terminals in CNOOC

Guangdong 1. Guangdong Dapeng Dapeng LNG LNG Project Project May 26th 2006, 1st ship LNG reception June 28th 2006 commission Sep. 28th 2006 commercial operation

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2. Progress of LNG Terminals in CNOOC

2. Fujian LNG Project
CNOOC G&P Fujian I&D 60% 40%

LNG resource from Tonggu Indonesia

Phase I Total Investment

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2.6 MTPA RMB 5.54 Billion

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Fujian 2. Fujian LNG LNG Project Project
Dec. 2004, approved by the National Tank constructing Development and Reform Commission (NDRC) Oct. 26th 2006, Tank-1 roof air rising Nov. 8th 2006, Tank-2 roof air rising End of 2007, machine completion
Tank roof air rising

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2. Progress of LNG Terminals in CNOOC

3. Shanghai LNG Project
LNG resource from Malaysia

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2. Progress of LNG Terminals in CNOOC

3. Shanghai LNG Project
Phase I Investment Start up 3 MTPA RMB 6.13 billion Sept. 2009

CNOOC G&P Shenergy

45% 55%

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2. Progress of LNG Terminals in CNOOC

3. Shanghai LNG Project May 2005,Land formation engineering began construction. LNG resource and the overall EPC contracts were implemented. Hill digging in XiMengTang island accomplished. The north section of joining bank starting construction. Dec. 8th 2006 NDRC approved.
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Hill blow up

Ground leveling

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2. Progress of LNG Terminals in CNOOC

4. Zhejiang LNG Project

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2. Progress of LNG Terminals in CNOOC

4. Zhejiang LNG Project
CNOOC G&P 51%

Phase I Investment CNOOC Gas & Power Ltd.

3 MTPA RMB 4.99 Billion 16

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4. Zhejiang LNG Project
Nov. 2005, Reported to NDRC for being approved. Ground leveling in tank section was completed. Site preparing list was completed
Site construction Port and jetty construction

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2. Progress of LNG Terminals in CNOOC

5. Zhuhai LNG Project
Phase I Start up 3 MTPA 2012

LNG terminal

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2. Progress of LNG Terminals in CNOOC

5. Zhuhai LNG Project July 2006, NDRC agreed to carry out the early preparatory work Develop the feasibility study report and arrange the checking and approving report Finished the bid of land formation engineering 15th
The first explosion at Pingpai hill

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2. Progress of LNG Terminals in CNOOC

6. Hainan LNG Project
LNG Terminal

Phase I Investment CNOOC Gas & Power Ltd. Start up

2 MTPA RMB 5.6 billion 2012 20

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2. Progress of LNG Terminals in CNOOC

6. Hainan LNG Project Carrying out eight monographic evaluated study report Developing Feasibility study report and arranging approving report. Preparing for land formation engineering

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2. Progress of LNG Terminals in CNOOC

Other LNG Projects progress

East of Guangdong LNG, Shenzhen LNG projects are busy in Gas market investigation and sites selection. Other LNG projects work at early preparatory stage.

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Contents
1. Introduction 2. The Progress of LNG Receiving Terminals in CNOOC 3. The Progress of LNG Standardization in China 4. Summary
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3. Progress of LNG Standardization in CNOOC

3.1 introduction

The 1st LNG engineering - Guangdong Dapeng Project commercially operated in Sep. 20006. At present, Several LNG projects are being constructed. During the process of construction, LNG standards play very important role in project quality management. LNG is regarded as a new industry in China, therefore, we have studied all the time some key subjects such as how to refer international standard systems, how to establish national, industrial and enterprise LNG standard systems.
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3. Progress of LNG Standardization in CNOOC

3.1 introduction

As the first company to deal with LNG, CNOOC has engaged in LNG standardization since 90s of last century. At present, we attained some achievements as following:

Established special national LNG standard system Established the series of LNG engineering construction standard system Established enterprise LNG standard system for CNOOC
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3. Progress of LNG Standardization in CNOOC

3.2 LNG national standard system Under the propose of the National Natural Gas Standardization Committee, the Workgroup of national LNG standardization was founded in 2000.

The Workgroup is responsible for the study on national special LNG standard system and the series of the relative standard system, which will guide the establishment/revision of LNG standard system. The Workgroup comprises 16 companies. Of the Workgroup, the director company is CNOOC G&P, the associate director company includes China National Petroleum Corp. (CNPC) and China Petroleum & Chemical Corp. (SinoPec)
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3.2 LNG national standard system

Since 2000, the Workgroup has systematically studied on foreign special LNG standards by three steps: Investigation, collection and arrangement of foreign standards; Identification and translation of key standards; Study on key standards to form relative reports.
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3.2 LNG national standard system Currently, Workgroup finished the series of special national LNG standard system. And according to the series, achievements were attained as follows: 9 9 9 9 9 3 items of national standard are enacted, 2 items are submitted, 6 items are being adopted, 7 items are planning to be adopted, 3 items are being studied.
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3. Progress of LNG Standardization in CNOOC

3.2 National LNG standard system
No. 1 2 5 3 4 6 Sort Product Item General characteristics of Liquefied Natural Gas Production, storage and transportation of LNG Installation and equipment for LNG
Degree of adoption and Standard No. IDT EN1160:1997 IDT NFPA 59A IDT EN 1473 Remark enacted enacted enacted planed planed adopting

NFPA 57 LNG vehicular fuel systems code Production Typical design specification of pre-stress concrete structure CEB-FIP:1990 And Transportati Liquefied natural gas procedure for custody transfer on board IDT ISO 13398 on ship Design and manufacture of site built, vertical, cylindrical, flat-bottomed steel tanks for the storage of refrigerated, liquefied gases with operating temperatures between 0 C and -165 C BS EN14620

adopting

8 9

Specification of LNG density calculation model

ASTMD4784-93

submitted

Analysis Refrigerated hydrocarbon fluids static measurement and IDT ISO 6578 measuremen calculation procedure t Refrigerated light hydrocarbon fluids - measurement of liquid levels in tanks containing liquefied gases - electrical capacitance gauges
MOD ISO 8309

adopting

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adopting

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11 12 13 14 15 15 17 A n a l y s I s & M e a s u r e m e n t H S E
Refrigerated light hydrocarbon fluidsmeasurement of temperature in tanks containing liquefied gasesresistance thermometers and thermocouples Liquefied nature gas calibration of membrane tanks and independent prismatic tanks in ships physical measurement Refrigerated light hydrocarbon fluids - sampling of liquefied natural gas - continuous method Liquefied natural gas calibration of spherical tanks in ships part 1: stereo photogrammetry Liquefied natural gas calibration of spherical tanks in ships part 2: triangular surveying Liquefied natural gas measurement of liquid levels in tanks containing liquefied gases float type level gauges Refrigerated light hydrocarbon fluids - measurement of liquid levels in tanks containing liquefied gases - microwave-type level gauge MOD ISO 8310 adopting

MOD ISO 8311 IDT ISO 8943:1991 MOD ISO 9091-1 MOD ISO 9091-2 MOD ISO 10574 MOD ISO 13689

adopting submitted planned planned planned planned

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Static and dynamic measurement of liquid light hydrocarbon

IDT IP 251/76

planned

19 20 21

Liquefied natural gas facilities: federal safety standards Navigation and navigable waters gas waterfront facilities handling liquefied natural gas and liquefied hazardous gas Navigation and navigable waters gas regulated navigation areas and limited access areas

49CFR 193B 33CFR 127 33CFR 165B

Pre-study Pre-study Pre-study

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3.3 LNG engineering construction standard system

LNG engineering construction should implement the relative engineering standards besides special LNG standards. Therefore, the Workgroup also investigates and collects the relative engineering standard at home and aboard. Adopting Principle: the domestic standard priority. if the domestic is lack, and then adopt foreign standard.
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3.3 LNG engineering construction standard system
LNG engineering standard series

port & jetty

terminal

pipeline

utility

LNG engineering standard series are classified as 4 main parts: port & jetty , terminal, pipeline, utility. Each part includes several specialties. There are 21 items of special LNG standard, 22 items of port & jetty standard, 661 items of receiving terminal standard, 13 items of tank standard, 98 items of pipeline standard, and 328 items of HSE standard. The total is 1140 items of LNG engineering standards.
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3. Progress of LNG Standardization in CNOOC

3.4 LNG enterprise standard system in CNOOC

During the LNG project construction, some details existing in technology and management, especially in quality management process and specific technical requirements, are lack of national and industrial standards to comply with, therefore, for companys management and development in future, CNOOC G&P arranges a series of enterprise standard system as following:
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3.4 LNG enterprise standard system in CNOOC
sort item 1. specification of standardization management basic 2 standardization working instruction 3. LNG project management manual LNG Terminal and trunkline project 4. Instruction of LNG project site selection report 5. Instruction of LNG project pre-feasibility research report Front study stage 6. Instruction of LNG project feasibility research report 7. Instruction of LNG project application report for approving Design stage 8. Instruction of LNG project engineering basic design file remark enacted enacted compiling planned planned planned compiling planned

9.LNG engineering checking and accepting of completed installations compiling Checking and manual accepting planned stage 10. Instruction of LNG terminal and trunkline checking and accepting completed installations later-appraisal report 11. Regulation of LNG safety HSE 12.HSE management manual compiling Front study

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Contents
1. Introduction 2. The Progress of LNG Receiving Terminals in CNOOC 3. The Progress of LNG Standardization in China 4. Summary
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4. Summary

At present, CNOOC is the first company of really engaging in LNG industry in China, CNPC and SinoPec are working at front stage of LNG project, so it will take several years to develop LNG industry to a certain scale. Considering the urgent demand for LNG in China, we hope those engaged or plan to engage in LNG field strengthen cooperation to speed up the industry. International, national and enterprise standard systems involve all the chains of LNG project. These existing standards basically satisfy the engineering construction and quality management of LNG importing projects. However, some detail aspects need to be supplemented step by step, which requires all companies efforts.
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Thanks
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