LNG Terminal Expansions; Working Successfully Within a Live Plant

Abstract

Abstract This paper is based on the lessons learned during the two recent expansions of the Southern LNG import terminal in Savannah GA. It shows how the Project Management team planned and executed the expansions, and particularly how the team interfaced with Operations. Possible applications of the information provided in this paper is for LNG terminal owners and operators who seek to perform similar expansions within an operating terminal, or similar mid-stream operating facility (gas processing, etc.). The paper concludes with 4 major findings that will benefit the reader:Project Management and Operations teams are significantly different in their goals, work practices, structure, culture, and scope, which affect expansion projects. Project engineers may lack operating experience and perspective, which can limit their ability to " Design for Operability??. Operations personnel can have less project management perspective, but are the true authorities on running the plant safely and efficiently. Leveraging both strengths is the key to a successful project.The greatest risk on the expansion project occurs at the Project - Operations interface. This interface is best managed through planned and structured communication systems (meetings, reviews, reports, golf), tailored for a mutual success.Contractor management is challenging when working within a live plant. Tie-ins, notices, permits, interference, slow downs, etc. must be planned for early, and thoroughly addressed in the contract.Commissioning and turnover of the expansion is crucial from the stand point of Operations interface. The phasing in of Operations personnel with Project personnel (training, spares, warranty work, lessons learned, and close out) must be thoroughly planned beforehand. Three major technical contributions to the knowledge base for the LNG industry are:The Post-Project Lessons-Learned exercise this project confirmed the effectiveness of our communications management approach.The Contracting strategy for the EPC contract included key contractor responsibilities and specified expectations and communications responsibilities that mitigated interface risks.The Project Team acquisition, development and leadership methods used were highly projectized to produce a purpose-built project organization. 1. INTRODUCTION Southern LNG owns and operates an LNG receiving terminal near Savannah GA. The terminal was built in the late 70s, operated for 3 years and was decommissioned for 18 years until being re-commissioned in 2000-2001. Shortly thereafter, the first expansion was planned. This expansion coincided with the initial years of operations of the newly reactivated plant, and had to be taken into account from a risk and scope standpoint. The project team worked closely with the Operations staff to plan and execute the expansion successfully. Lessons-learned from the first expansion has been applied to the subsequent expansion, now underway at Elba.