Technical Challenges & Design Features of the Largest LNG Tank in Korea

Technical Challenges & Design Features of the Largest LNG Tank in Korea
Eui-Seung ParManaging Director, Plant Division

Biography of Speaker
Eui-Seung Park is a Managing Director and a Technical Fellow of Program Committee B(PGC B) of International Gas Union(IGU). He has been working for Daewoo E&C for around 30 years and has been involved in many natural gas and LNG projects. He attended Seoul National University and received his BS in electrical engineering and also completed Advanced Managerial Program(AMP). He is in charge of plant projects including LNG in Plant Division. E-mail : espark@dwconst.co.kr

Hong-Sung Kim General Manger, Plant Division Seung-Beom Hong Manager, Plant Division Se-Jin Jeon
Senior Researcher, Institute of Construction Technology

Seung-Rim Lee Senior Researcher, Institute of Gas Safety R&D Korea Gas Safety Corporation, 332-1, Deaeya-Dong, Sihung-Si, Gyunggi-Do, 429712, Korea

Daewoo E&C Co., Ltd., C.P.O. Box 8269, Seoul, Korea Joseph. H. Cho Technical Advisor, Ph.D., PE Kellogg Brown and Root, 601 Jefferson Avenue, Houston, TX 77002 AIChE Spring National Meeting, April 2006 6th Topical Conference on Natural Gas Utilization Orlando, Florida , April 23-27, 2006

market. The importance of LNG storage facilities in

1. Introduction
Since the first LNG cargo was imported to Korea at the end of 1986, the downstream LNG industry of Korea has seen remarkable development in each sector from receiving terminals to the nationwide trunkline network. As a result, LNG is positioned to become a major primary energy source in the domestic

Korea has recently been highlighted by the country's considerable increase in consumption and the security of a stable supply against seasonal peak loads in winter, which have resulted from sizeable investments to address the issue in a timely manner. This paper will discuss past major activities in the various fields of the LNG tank industry (such as engineering, construction, technology

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Technical Challenges & Design Features of the Largest LNG Tank in Korea

development, safety study, etc.) starting from the construction of the first receiving terminal at Pyeongtaek in 1986 to the design of the world's largest above-ground LNG tank which is scheduled to begin construction in early 2006. The design of full containment LNG tank of this 200,000m3 has been developed with an emphasis on the cost saving and land use efficiency under the Korean geopolitical specifics. This paper also discusses the technical challenges and design features of the largest full containment.

nation-wide natural gas trunk line network (about 2,500 km in length), which was constructed and operated by Korea Gas Corporation (KOGAS). Particularly, the annual gas demand growth rate is 9.7% from 1997 to 2004, which was more than 4 times greater than of global growth rate of 2.3% in natural gas consumption. Besides, its supply rate of city gas to the household was 68.8%. However, the demand for LNG from the power sector shows a comparatively stable demand pattern around 35%. The demand from the city gas sector, which shows a big seasonal fluctuation, takes a considerably large portion of total

2. Increase in LNG Tank Capacity

Currently, Korea is the world's 2nd largest LNG importer after Japan. The Korean LNG industry has been developing correspondingly with an increase in LNG consumption by approximately 16% per annum since the first importation at the end of 1986 to the Pyeongtaek terminal from Indonesia. In terms of its development, 22.2 Million Tones per Annum (MTPA) of LNG were imported and supplied in 2004 through the

demand (see Table 1). Korea has executed a long-term supply and demand program increasing the storage rate from 9.6% in 2005 to 12.7% in 2015 in order to make preparations against the annually constant increase of demand and seasonal peak loads. The Korean government expects that large storage volumes contribute the stability of supply and demand. This can also meet the governmental energy-reserving policy in natural gas. . Table-1 shows the increase in LNG demand

Table 1 - Prospect for LNG demand and expansion plan for storage capacity
1997 LNG Demand (103 Ton) Storage Capacity (106m3) City Gas Power Total Newly Accumulated (%) 5,770 5,377 11,147 1.3 5.2 2000 9,528 4,689 14,217 7.0 2.0 6.3 2003 11,979 6,468 18,447 14.4 3.4 8.4 2005* 13,658 7,612 21,270 10.2 4.5 9.6 2007* 15,386 8,572 23,958 7.0 5.2 10.2 2011* 18,852 6,992 25,844 20.8 7.2 13.2 2014* 21,700 6,014 27,714 8.4 8.1 13.7 2017* 24,893 6,764 31,637 5.6 8.6 12.7
Annual Growth Rate (%, 03~)

5.36 0.32 3.93

Storage Rate

Note) * is planning data from 'The 7th Long-term Supply and Demand Program, by MOCIE (Ministry of Commerce, Industry and Energy), December, 2004'

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by around 4% makes the expansion of storage and supply facilities inevitable, which requires sizeable investment and the enlargement of LNG tanks considering the economy of scale.

was preferred from an economic point of view and dominated the market with over 100 units in the world. However, the geopolitical specifics of the armistice as a divided country after the Korean War made Korea select the full containment type of LNG tank even though it

3. Development of LNG Tank

1st Generation : Above-ground membrane LNG tank with dike

required high capital investment focused on the safety of the tank. By 2000, 10 units of aboveground LNG tanks (#1~10) had been installed at Inchon terminal.

The first LNG tank introduced in Korea was the membrane type at the Pyeongtaek terminal In 1983, the membrane technology developed by Technigaz, France, was adopted for the first three units (100,000m3 x 3) and the same technology was applied to the terminal expansion, resulting in construction of total 10 units of storage tanks. This tank can be called the 1st Generation LNG tank' for convenience.

3rd Generation : In-ground membrane LNG tank

Then came the so-called 3rd Generation LNG tank, in-ground membrane type. These started to be installed for the first time in Korea at the same terminal from 1997. From 1997 to 2004, a total of 8 units of in-ground tanks (#11~18) were constructed through 4 individual projects using the Japanese membrane technology. Two tanks (#19~20) that have adopted the KOGAS membrane technology are under construction. These have resulted from a wide range of research and development of membrane and its components such as insulation material. Besides, their individual storage capacity of 200,000m3 deserves attention as the largest volume in the world for 8 tanks (#13~20) out of 10 units.

2nd Generation : Above-ground 9% Ni full containment LNG tank with dike

After construction of Pyeongtaek terminal, the 2nd LNG terminal was built from 1990 to 1996 at Inchon terminal in order to meet abrupt increase in LNG demand and supply natural gas to Seoul Metropolitan area. This comprised 9%Ni full containment LNG tanks (100,000m3 x 3) so-called the 2nd Generation LNG tank. This type of tank was state-of-the-art at the time of construction since only about 15 units1) had been built in a few countries in the world. Traditionally, the single containment type of double wall LNG tank with 9% Ni inner tank

4th Generation : Above-ground 9% Ni full containment LNG tank with no-dike

From 1999 to Oct. 2002, the 3rd LNG terminal in Korea was built at Tongyeong and the so-

1) In the basis of countries operating import terminals (Source : A study on the containment type of LNG tank, KOGAS, Aug. 1998)

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Technical Challenges & Design Features of the Largest LNG Tank in Korea

Fig. 1 - Development of LNG Tanks in Korea

called 4th Generation LNG tank has been installed, no-dike 9%-Ni full containment LNG tank (140,000m3 x 3, #1~3) with the largest diameter of the LNG tank (86m in O.D.) in the world. This terminal has made a significant contribution to the supply of natural gas in the southern area of Korea. After 2 more tanks (#4~5) were installed, a total of 7 tanks (#6~12) with the same capacity have been constructed based on the KOGAS design since Jan. 2002 (#6~10 tanks in operation). In the first half of year 2006, the super-size above-ground LNG tank with a 200,000m 3 capacity will be constructed in this terminal, which will be the first time in the world. During two decades of LNG history, Korea has been developing with a remarkable increase of LNG consumption and made a very dynamic market for the LNG tanks. The market contributes development of the large storage tanks, adopted state-of-the-art technology. It

can be said that this results from devotional efforts by the Korean government led by KOGAS and some companies involving in LNG tank design and construction.

4. Security of Safety for LNG Tank

Even though the Korean LNG industry has only about running for 20 years, there are considerable efforts to establish a Korean regulatory system for enhancing LNG tank safety. This was led by Korea Gas Safety Corporation (KGS) and supported by KOGAS and government agency. The High Pressure Gas Safety Control Law was enacted in 1996 and then KGS began to implement verification of safety for LNG tanks. In 1998, KGS completed 'A Study on Inspection Standards of LNG Storage Tanks' and this has presented installation standards for LNG tanks at Inchon

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and Pyeongtaek terminals. KGS also performed 'A study on Inspection Technology and International Standards for LNG Storage Tanks' in 2002, which results in a standard for the no-dike LNG tanks (7 tanks in operation) at Tongyeong for the first time in Korea. This detailed study on the functions of dike for LNG tank was the basis of this guideline, which regards the outer wall of a full containment tank as the dike (or impounding wall). The guideline does not require the dike since full containment outer wall is considered having the same function and safety of the dike. After this guideline has been enacted, nodike were installed for the full containment type of LNG tanks. As a result, the client has benefited from enhanced land use efficiency. In 2004, KGS implemented the 'Comparative Risk Assessment of LNG Tank Design' with the help of the English consulting firm, AEA Technology, and the Korea Institute of Gas (KIGAS). They compared and evaluated the safety of the ordinary full containment LNG tank and the KOGAS membrane tank through structural analysis and quantitative risk assessment. The latter KOGAS membrane tank was found to have the same level of safety as the full containment LNG tank installed at Tongyeong. KGS is developing Korean Industrial Standard(KS) codes similar to the international codes and standards such as BS, API and EN code with governmental agency. The efforts of KGS towards the establishment of proper safety standards in time for Korean LNG tank

industry were successfully achieved during a short period and eliminated unnecessary debate over safety issues. As a result, KGS has contributed greatly to the national plan for LNG storage facilities and the development of its related industries.

5. Design of the Largest Aboveground LNG Tanks

The Korean LNG tank industry has developed technologically and its market was enlarged along with 9%-Ni LNG tank's installation at Inchon terminal. At the same time, the market competition has been serious as well, which led to a reduction in the construction cost per unit volume of tank capacity. For example, the LNG tanks at the Tongyeong terminal were constructed at the cost of 70% of the tanks at Inchon2).

Fig. 2 - Relative Specific Tank Construction Costs

* Notes) - Specific tank construction costs were obtained from total construction costs divided by net storage volumes (m3).) - 100,000 m3 tank has dike, while others are no-dike type. - 200,000m3 capacity LNG tank costs is based on Kogas' planned Tongyeong project

2) Estimated by the contract amount and storage capacity taking account of inflation

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Technical Challenges & Design Features of the Largest LNG Tank in Korea

Keeping pace with the increase of national demand for LNG, the government policy of enlargement of LNG tanks has been aimed at reducing the national budget. It has also been led to competitiveness in the market and development of the technology in the engineering and construction areas. In terms of above-ground LNG tanks, the result of cost efficiency for the enlargement of tank capacity was obtained through the analysis of many projects in Korea. The data was collected from the various projects at Inchon and Tongyeong terminal and analyzed with adjustment for the identical timeframe taking into account for annual inflation by 3%. Daewoo Engineering and Construction Co., Ltd. ('DWC') has participated in the LNG tank industry since 1995. DWC has independently started the development of 200,000m3 aboveground LNG tank based on design and construction experiences at Inchon and

Tongyeong terminals, as a strategy to be a market leader at the end of year 2000. The world's largest tank was 180,000m3 aboveground LNG tank at the Senboku and Himeji terminals, Japan, in 2000. DWC targeted the following objectives in the development of a 200,000m3 tank.

Cost reduction per unit volume Enlargement of land use efficiency Technology development of structural analysis and materials Reduction of construction period

In February 2005, DWC succeeded to develop the design and structural analysis technology for inner and outer tanks on the basis of various codes and standards, first hand experience from previous LNG projects and the design and analysis technology acquired from nuclear containment. The various LNG tanks have been installed around the world including Korea principally in accordance with BS7777

Fig. 3 - Sectional View of 200,000m3 LNG Tank

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and API 620 codes. However, each code has its own strict and different provisions for the thickness of plate for the inner tank and the hydrostatic test level, which in fact limited the maximum capacity up to 160,000m3 for the LNG tanks. But now the newly established European code prEN14620 replacing BS7777 can allow the inner tank design with over 50mm thickness and partial hydro-test level up to 125% of the maximum liquid loads. Based on this new regulation, DWC implemented a study on various sizes of LNG tanks with the optimum height to diameter(H/D) ratio and finally selected the most economical H/D ratio securing the safety in the seismic loads of OBE(0.1g) and SSE(0.2g) without anchor strap. Then, DWC designed and verified the tank with structural analysis having the following specifications.

6. Conclusion
As the second largest LNG importer in the world, the Korean LNG industry has grown remarkably in a relatively short period of 20 years. Along with this, LNG storage facilities have also been steadily expanding according to the increase in demand to secure the supply of LNG against peak loads and introduction of energy-reserving policy for LNG as an important primary energy source such as petroleum. Additionally, thanks to the constant efforts from the government authorities such as KOGAS and KGS and LNG-related companies, it has been possible to build the various and state-of-the-art LNG tanks based on the governmental policy of the expansion of LNG supply. These efforts gave birth to the Korean membrane and 9% Ni LNG tanks overcoming many difficulties. Through these efforts, DWC could secure engineering and analysis technology for the largest 200,000m3 full containment LNG tank of 9% Ni type based on its own advanced technology as a leading contractor in the Korean market and lay the foundation to leap to into the global market where the trend of expansion of LNG liquefaction and receiving terminal is very apparent worldwide due to the increase of LNG demand and oil prices.

Capacity : 200,000m3 / 90m (ID) X 35.3m (inner tank height) Internal pressure : 290mmbar / thickness of 1st plate : 31.2mm Radius of curvature for dome roof : 0.8d (Safety check with allowable stress & buckling)

Ring beam: designed to reduce thrust transmitted from the dome roof & internal tendon

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Technical Challenges & Design Features of the Largest LNG Tank in Korea

References
1. Se-Jin Jeon, "Design Basis for Large Above-Ground Tank", GASEX2002, May 2002 2. MOCIE (Ministry of Commerce, Industry and Energy), "The 7th Long-term Supply and Demand Program", December, 2004 3. KOGAS (Korea Gas Corporation), "A study on the containment type of LNG tank", August 1998 4. "API 620: Design and construction of large, welded, low-pressure storage tanks", 1996, American Petroleum Institute. 5. "BS 7777: Flat-bottomed, vertical, cylindrical storage tanks for low temperature service", 1993, British Standards Institution. 6. "prEN14620: Design and manufacture of site built, vertical, cylindrical, flat-bottomed steel tanks for the storage of refrigerated, liquefied gases with operating temperatures between 0oC and -165 oC", 2006, European Committee for Standardization. 7. KOGAS R&D Division, "Design Information on the Largest LNG Storage Tank", May 2005

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