Some more on modular LNG

Siemens is the driving force behind the technology…

What does a ‘modular design’ mean? Well, somebody (like EWC) is putting modules together, but they can’t do that without others providing the innovative design of the modules. It’s like a PC, which is build from modules like processors, hard-disks, memory.

The real innovation and expertise resides in these module producers, like the technological powerhouses like Siemens and Chart. Importantly, since this is a new concept, the modules are not (yet!) standard off-the-shelve items but exist as a result of the technological expertise of Siemens and Chart. They therefore stand to gain greatly from the new concept as then they’ll become standard, off-the-shelf items and Siemens and Chart could be the Intel’s and Microsoft’s of this new modular LNG concept.

Here is the original order for equipment originally destined for Indonesia but that might now very well be heading to PNG:

Siemens receives major orders for LNG plant in Indonesia

Erlangen, 2007-Nov-20

Siemens is emerging as a key supplier for power and compression solutions to the liquefied natural gas (LNG) industry. Chart Energy & Chemicals, Inc. (Chart) has ordered four motor-driven main refrigerant compressors for four liquefaction trains to be installed in an LNG plant in Indonesia. Siemens will supply four 27-megawatt (MW) electric-motor-driven in-line centrifugal compressors along with a Siemens Robicon frequency converter to be used for motor startup. Furthermore, Siemens will supply two 65-MW gas turbines and generators to the plant owner, Energy World Corporation (EWC), one unit to support the grid through its subsidiary company PT Energi Sengkang, and the other unit to deliver power to the LNG plant. The volume of the orders is over EUR50 million.

These orders are significant for Siemens because they are the first application of large Siemens compressors in the main liquefaction trains of an LNG plant. The four 500,000-ton-per-year liquefaction trains will provide LNG to meet the growing demand in South-east Asia, primarily in Indonesia and the Philippines. The first two trains are scheduled to come on stream in the second quarter of 2009.

With its unique portfolio and competences Siemens is the only company that can offer one-stop solutions from power to compression,” said Ralf Kannefass, Vice President Oil & Gas at Siemens AG. “As electric LNG applications become more and more attractive we are expecting a rapidly growing market for this innovative technology. With our standardized products for the mid-size LNG market we can also offer the most cost-efficient solutions to our customers.”

Siemens’ leading-edge technology providing one-stop solutions combined with Chart’s market standing in gas processing and engineering equipment supply and with Energy World’s Asian experience will enable successful implementation of this project in an important and expanding section of the LNG market, which is now recognizing the significance of EWC’s mid-scale modular LNG liquefaction program,” added Stewart Elliot, Managing Director and CEO of EWC. “This program which is based on standardized 500,000 tons per annum permits the phased implementation of LNG projects up to a capacity of 5 million tons per annum in a timely and capital-efficient manner.”

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And they’re hardly alone: