snøhvit lng project
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Caracas Caracas JulyJuly 20052005
Snøhvit LNG Project:
First First BaseBase--loadload LNG LNG Production
Snøhvit LNG Project:
Roy Scott HeierstedRoy Scott Heiersted
Statoil ASAStatoil ASA
Europe’sEurope’s Production
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Snøhvit - opening the Barents Sea
Strategic project:
• First offshore in the Barents Sea
• First LNG production in Europe
• New gas markets for Norway
• Environmental focus
• Industrial experience in Arctic.
SnøhvitSnøhvit
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Technology for Snøhvit in the Barents SeaKey technology research and development since the 1980s
Statoil is a “Technology Locomotive” for Norwegian Industry and Research
Results are- State-of-the-Art technologies- International recognition- Industrial products and methods
Snøhvit license owners now benefit from results of Statoil’s achievements in innovation.
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Snøhvit - novel subsea designLocated 150 kilometers offshore in 350 meters water depth
North Sea achievements are extended in Snøhvit design:
Complete subsea systemsMultiphase transportationComprehensive corrosion
and hydrate systemsRemote control from shore
No platforms or manned operations offshore
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Snøhvit - complex land facility design Offshore flow assurance systems and gas processing plant
Several “first” technologies in the Snøhvit land facility design:
Flow assurance systems for subsea is located onshore
Environmental protection investments made
New LNG process technology selected
First European base-load LNG production
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Snøhvit subsea production system15 years development of the optimal well-head system
10/29/2002 14
Standardized components
Standardized operation
Standardized maintenance.
The Snøhvit offshore area design withproduction pipelines and service lines
Remote operations by umbilical system
Well-head template production system.
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Snøhvit multiphase flow design25 years to develop State-of-the-Art methods and know-how
Rigorous dynamic simulation tools (OLGA)Large scale flow experiments (Tiller loop)Corrosion and hydrate field experiments Step-by-step implementation in Statoil fields.
0
10
20
30
40
50
60
70
0 50 100 150 200Transfer lenght (km)
Liqu
id R
atio
(bbl
s/MMS
CFD)
Legend Red:Statoil operated Operating Construction/planned
Malampaya
MikkelEast Spar
Goldeneye
Snøhvit
KuduMensa
Popeye
North Alexandra
Western HubEM
TrollTOGI
Midgard
West deltaCorrib
LIMIT OF INDUSTRY EXPERIENCESnøhvit streches present international practice by
50 % distance on complex multi-phase fluids:
From 100 km to 150 km
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Snøhvit LNG process design20 years of Statoil LNG R&D creates international competition
State-of-the-Art process design:
MFC® liquefaction process efficiency;Specific Compressor Power:
= 230 kWh per ton LNG
X 1
N G
L N G
C W 1
C 2
C W2 A /B
E 1 A
E 1 B
E 2
E 3
P re -c o o lin gP re -c o o lin gS e c tio nS e c tio n
L iq u e fa c tio nL iq u e fa c tio n S e c tio nS e c tio n
S u b -c o o lin gS u b -c o o lin gS e c tio nS e c tio n
C W3 A /B
C 1
C 3G
Statoil LNG R&D, 1984 - 200412 Ph.D.s in LNG related topics at the
Norwegian Institute of Technology
The MFC® LNG process design patented by Statoil and Linde in
1997 was selected by the Snøhvitpartners in 2000.
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Snøhvit - regional challenges
Arctic climate at 70o - 80o North
World’s largest pelagic fishery
Positive stakeholder response
Co-existence in a sensitive arctic environment have to be based on a ”win-win”
situation
Focus on environment is sustainable development
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Snøhvit - project execution strategySite conditions require a novel construction method
• Site conditions in northern Norway,
at the shores of the Barents Sea,
requires specific attention to:
- Arctic weather conditions
- Lack of regional infrastructure
- Long logistics chains for
both personnel and materials. SnøhvitSnøhvit
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Hammerfest City and the LNG Plant- how to develop industry in a remote region
LNG plant
Airport
Hammerfest
Offshore base
Hammerfest City have 9000 inhabitantsLimited industrial activities in the regionRestricted communication infrastructure.
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Pre-fabrication - a Jig-Saw puzzle
The pre-fabrication strategy involves a broad specter of European fabrication yards in a logistic link of pre-fabricated systems and units.
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Site construction – a “green field” plant
from 2002
Starting from a “green field” island in the Arctic north, in summer 2002
Making an LNG plant develop in the next 28 months from the first rock blasting.
to 2004
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Income and taxes - investments and manning
Production during 25 years:Income 300 billion NOKTaxes 75 billion NOK
Project development (1997-2006):Investments 51 billion NOK 30 000 engineering man-years51% Norwegian contracts1500 persons at Melkøya on peak
Operation from 2007:160 employees in operation organisationApproximately 350 man-years indirectly.
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Regional and local deliveriesSnøhvit contract strategy reflects a social responsibility
Investment contracts aggregated per 2004:
International contracts 49 %
Norwegian contracts (national) 51 %
Part of overall investments:
Northern Norway (regional) 8.5 %
Hammerfest/Alta (municipality) 5.5 %
Nearly 15 % is regional and local deliveries
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Snøhvit - major milestonesFrom parliament approval to first gas to plant in 48 months
March 2002:
Norwegian Parliament approval
July 2002:
Construction work starts on land
July 2005:
Major hook-up of process systems
February 2006:
First natural gas to LNG plant
October 2006:
First commercial LNG delivery
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Snøhvit - LNG market outlets
• 1.8 mtpa to Cove Point terminal, USA
• 1.2 mtpa to Iberdrola, Spain
• 1.3 mtpa equity gas to GdF and Total.
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Statoil at a new frontier in the ArcticMilestone project for the Norwegian Continental Shelf
• State-of-the-Art technologies
• Arctic frontier complexity
• Environmental agenda
• New market opportunities.
Snøhvit is viable investment and experience
Closing remarksClosing remarks