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lngstoragedevelopmentplan

LNG STORAGE PLAN
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10 views5 pages

lngstoragedevelopmentplan

LNG STORAGE PLAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LARGE STORAGE TANK PROJECT

INTRODUCTION
The Fairbanks Large Storage Tank is part of the Interior Energy Project (IEP) designed to expand natural
gas distribution in Fairbanks and Interior Alaska. A tank with a capacity of 0.44 Bcf (5.25 million gallons)
is desired. A five-million-gallon tank represents a 15 fold increase compared to FNG’s current storage
capacity. The new tank is part of a program that will develop new, larger capacity production facilities,
larger tanker fleet, and expanded distribution system. The development of the production facility,
tanker fleet, and distribution system are under separate cover.

PROJECT
The Fairbanks Large Storage Tank is a project (“the Project”) to design, construct and startup storage,
truck offloading, and vaporization facilities at an existing FNG facility in south Fairbanks, Alaska. The
existing storage tanks will be decommissioned and re-purposed after startup of the new facility. New
vaporization is required to handle the planned increased volumes of gas sent out from the tank. The
new tank and vaporization equipment will be tied into the existing and expanded metering run and
distribution header.

PROJECT DEVELOPMENT PLAN


This Project Development Plan describes the means, methods, and expenditures for accomplishing
project goals. This plan will be updated periodically throughout the life of the project. This development
plan references other agreements, contracts, and documents. In the event of conflict between the
terms, conditions, and provisions of this Project Development Plan and any referenced document, the
terms, conditions, and provisions of the referenced document shall control.

SCOPE
Preliminary Engineering
Preliminary engineering will evaluate the tank site for permit requirements, surrounding activity and
zoning considerations, and vapor dispersion and thermal exclusion space. The vapor dispersion and
thermal exclusion space will determine the maximum size of the tank suitable for the site. Preliminary
engineering will also develop a list of qualified tank bidders, develop the contracting plan, prepare
request for proposal for tank design and erection, determine site layout, conduct geotechnical
LARGE STORAGE TANK PROJECT
investigation, determine most cost effective foundation design, and conduct the bid for tank design and
erection.

Tank Design-Erect Contract


The LNG storage tank is a specialty item governed by several design codes including federal 49 CFR 193 –
Safety Standards for LNG Facilities; NFPA 59A – Standard for Production, Storage and Handling of LNG;
and API-620 – Standard for Design and Construction of Large, Welded, Low Pressure Storage Tanks.

The tank, its foundation and the site preparation will be designed and erected on a lump sum turnkey
contract basis.

The bid specifications call for bidders to provide a refrigerated liquid tank suitable for storage of liquids
at -325°F or warmer at a pressure of not more than 2.0 psig in general accordance with API-620 2006
edition.

The successful bidder will design, provide materials, and construct on-site the tank and associated
appurtenances including foundation anchors, access stairs, top platforms, and maintenance lifting gear.

The successful bidder shall be responsible for testing the tank and the insulation space for leak-free
condition. The successful bidder shall also provide technical personnel to supervise the initial cool-down
of the tank with LNG provided by FNG. The initial cool-down is a critical step to ensure that metal
shrinkage is properly controlled and the tank maintains integrity.

The successful bidder shall warranty materials and workmanship for a period of two years from the date
of substantial completion. The successful bidder shall also warranty the tank rate of evaporation (“Heat
Leak”) at a rate mutually agreed to in the contract for a period of two years. Bidders are requested to
provide a design with a rate of evaporation that approaches 0.05% at 50% tank capacity at the Fairbanks
annual mean temperature of 27°F.

Site Development
Land clearing, access roads, and secondary containment dikes are required for the site. The work will be
designed under the guidance of FNG’s Owner Engineer. The work will be included in the Tank bid.

Foundation
CHI Engineering in collaboration with Alaska-based has completed geotechnical evaluations and studies
necessary to establish a baseline for designing for permafrost conditions and sealing of drawings. The
tank erector will be responsible the foundation installation.
LARGE STORAGE TANK PROJECT
Vaporization
FNG’s Owners Engineer will design the vaporization equipment. The equipment will be purchased by
FNG and installed by Alaskan contractors.

Truck offloading
FNG’s Owners Engineer will design improvements to truck-offloading to allow higher transfer rates and
more frequent deliveries. Equipment will be purchased by FNG and installed by Alaska contractors.

Send-out pumps
FNG’s Owners Engineer will develop specifications for in-tank LNG send-out pumps. The pumps will be
purchased by FNG and installed by Alaska contractors under factory supervision. The in-tank pumps are
selected for reliability and reduced operating cost. External booster pumps can be added in the future if
high-pressure delivery to future industrial users is required.

CONTRACTS
The contracting plan for development of the complete new storage site, including the tank is based on
FNG serving as the project developer, and issuing and coordinating multiple prime contracts. In this
manner, FNG can select the best value providers for portions of the scope. The contracts are:

 Owner’s Engineer – Currently CHI Engineering Services, Inc. Portsmouth, NH.


o The Owner’s Engineer is responsible for overall site development plans, including the
vapor dispersion and thermal radiation studies, foundation design, equipment sizing
 Permitting Consultant – Not Yet Selected
o Permitting consultant responsible to identify and make application for all required
permits
 Structural Engineer / Arctic Engineer – Great Northern Engineering, Inc. Palmer, AK
o The structural and arctic engineer provides the tank foundation support calculations,
pile sizing, and cold weather details in support of work by Owner’s Engineer.
 Geotechnical Engineer – Golder Associates, Anchorage, AK
o Geotechnical engineer provides subsurface investigation and determines soil bearing
capacity for foundations and structures placed on the site
 Tank Designer / Erector
o Tank designer / erector has responsibility for designing a tank and foundation of the
specified size in compliance with all applicable codes, and Owner specifications, erecting
the tank in a safe, timely manner, and testing and certifying the tank to applicable Codes
and standards. Tank erector shall provide personnel to supervise the initial cooldown
and commissioning of the LNG tank. Foundation scope will include supply, fabrication,
LARGE STORAGE TANK PROJECT
and installation of piling; installing cooling coils around foundation in accordance with
final design, placement of embedded tank anchors; and completion of the tank
foundation in a safe and timely manner. The Tank supplier will also be responsible to
prepare, rough grade, and fine grade site in accordance with plans prepared by Owner’s
Engineer. This work includes preparation of the tank foundation site; construction of
temporary access roads; construction of the secondary containment dike, grading and
site prep for truck offloading facilities
 Mechanical Contractor – Not yet selected.
o Mechanical contractor is responsible for setting all equipment other than LNG tank;
installation of piping and supports in accordance with designs by Owner’s Engineer from
first flange at tank to tie-in to existing distribution header; coordination of shutdowns
for tie-ins; testing and commissioning of all piping and equipment. Mechanical
contractor shall provide personnel to assist Owner in functional checkout and
commissioning of all equipment.
 Electrical Contractor – Not yet selected.
o Electrical contractor is responsible for providing and installing all temporary and
permanent electrical service to the site in accordance with designs provided by Owner’s
Engineer. Electrical contractor will provide conduit, supports, wiring and terminations to
all equipment and devices requiring electrical or signal power or communications.
Electrical contractor shall provide personnel to assist Owner in functional checkout and
commissioning of all components.
 Other – Owner shall contract for other miscellaneous services including IT interconnecting and
support; fencing, site security, security cameras and other services.

SCHEDULE
The schedule for project development is based on the following milestones

Milestones

June 15, 2017 Begin Preparing Updated RFP


September 15, 2017 Issue RFP for Tank Design & Erection
October 30, 2017 Tank proposals received
November 10, 2017 Final Investment Decision
November 15, 2017 Tank contract awarded
December 01, 2017 Final Foundation Design issued
December 03, 2017 Order piling and commence fabrication
LARGE STORAGE TANK PROJECT
March 20, 2018 Begin piling installation
June 12, 2018 Foundation complete and ready for tank erection
June 19, 2018 Commence tank erection
May 20, 2019 Tank ready for commissioning
June 26, 2019 Begin Cool down
September 1, 2019 Cut over to new tank – send out begins

Budget
The total project budget is $42 MM. The AIDEA Board of directors has authorized the expenditure of up
to $1.5 MM on preliminary Engineering and FEED work necessary to finalize the project budget prior to
Final Investment Decision.

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