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Nov 01, 2024

A focus on the behind-the-scenes | LNG Industry

Save to read list Published by Jessica Casey, Editor LNG Industry, Tuesday, 30 April 2024 15:00 The world is thirsty for a cleaner source of energy to replace coal. Energy producers in Asia have

Save to read list Published by Jessica Casey, Editor LNG Industry, Tuesday, 30 April 2024 15:00

The world is thirsty for a cleaner source of energy to replace coal. Energy producers in Asia have driven up the global demand for natural gas, and Europe’s move away from its Russian supply has developed new markets for energy export from North America. This rising demand for natural gas has triggered the start of numerous LNG projects across North America. Dozens of LNG projects are in the planning stages or actively developing in the US, primarily along the Gulf Coast (if they are not derailed by administrative red tape). Although many of these projects plan to supply natural gas to Europe, a huge demand persists in Asia. This dual East-West demand puts Canada, specifically Western Canada, in a prime position to be a world leader in LNG exports to Asian markets.

LNG Canada is the first of what could be many liquefaction plants built in British Columbia. Executing a project of this magnitude anywhere comes with great challenges. But executing a megaproject in the remote parts of Western Canada brings with it additional challenges. How do project managers supply a workforce large enough to support the project? How can construction managers ensure that the right tools and equipment are in place when they are needed, considering supply chain challenges and remote jobsites? And finally – but certainly not the least considered – is how can these projects, which are being built within the traditional, unceded territories of various First Nations, both respect the land they are being built on while also creating economic opportunities for the indigenous people who live and work there?

All of these challenges can be mitigated with forethought, partnerships made in good faith, and a lot of planning.

Planning is essential for constructing a project as large as an LNG liquefaction and export facility. That is obvious on its face. With a total installed cost landing in the tens of billions of dollars (both in Canadian or US dollars) complex process equipment, intricate piping design, sensitive instrumentation, and rigorous timelines, there is no way an LNG project would be successful without hours of painstaking planning and collaboration. To improve results in almost every aspect of construction, such as safety, budget, and schedule, planners should invest as much care and detailed planning in providing construction indirect services as they do in direct construction activities. This article outlines three examples of indirect construction services that will make the biggest impact on safety, schedule, and total installed cost when integrated into planning alongside detailed engineering.

Scaffolding exemplifies how an integrated approach can significantly impact key factors like safety, budget, and schedule. Scaffold safety is a key concern in British Columbia (seven of the nine Canadian projects that AMECO is tracking are in British Columbia) where wrapped scaffold structures must be engineered and stamped. To make this cost effective, the scaffold engineer needs to be engaged from the planning stages. This early involvement offers another advantage: it eliminates costly rework. When scaffold designers are involved early, they spot potential conflicts and either eliminate them or prepare ahead of time for modifications that will be needed. This has a dramatic impact on both labour hours and overall cost.

For example, a recent AMECO scaffold analysis comparing an integrated approach vs a conventional approach on a major LNG project found that while planning hours were higher in the integrated approach, modifications were eliminated. This resulted in a decrease of more than 2000 hours; this led to almost CAN$215 000 in modification cost savings. Total design hours were also reduced by 35%. In total, the integrated approach led to overall savings of 60% compared to the traditional approach.

It is challenging to find enough labour in the construction industry today. This labour challenge is exacerbated in remote areas, including where LNG Canada and Woodfibre LNG are being built. That makes efficient scaffold labour a critical component of project execution, and projects should ensure that the scaffold provider understands the labour needs for the type of scaffolding material that is being used. For example, ringlock scaffolding material typically requires crews of 4 – 6 labourers, while other scaffold systems, such as PERI Up, can be erected by teams of two or three. Meanwhile, different scaffolding systems have different requirements for tools (which can increase drop hazards), decking (which can contribute to trip hazards), and consumables, such as tie wire and lumber (which is time consuming to install, increases cleanup and disposal costs, and counters site environmental and sustainability efforts). Understanding these scaffolding requirements allows project directors to see the big picture when developing site access plans.

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Read the article online at: https://www.lngindustry.com/special-reports/30042024/a-focus-on-the-behind-the-scenes/

ABS has released its latest report into the potential of advanced nuclear technology for maritime applications, with a study of a small modular reactor on a standard LNG carrier.

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