Background

In the 1960s, ConocoPhillips Company and Marathon Oil contracted with Bechtel Corporation to construct the first natural gas liquefaction plant based on a new and innovative process designed by ConocoPhillips, the Optimized Cascade® LNG process. The result was the Kenai, Alaska LNG facility, which began operation in 1969, and continues operation today.

The initial intent was for ConocoPhillips to use the technology exclusively on projects in which it held an equity interest. However, in the mid 1990s, Atlantic LNG approached Bechtel with the need to build a low cost, yet reliable single train LNG facility. After completing the competitive FEED, Bechtel won the EPC contract, resulting in the first licensed application of the Optimized Cascade process and the first opportunity for ConocoPhillips to work once again with Bechtel in natural gas liquefaction.

As a result of this achievement, ConocoPhillips and Bechtel formed a Global LNG Collaboration in 1996 to capitalize on ConocoPhillips’ LNG technology expertise and Bechtel’s world class design and grassroots LNG project execution know-how.  The success of the Collaboration has resulted in the development of eight subsequent plants with a ninth unit in the engineering, procurement and construction phase - all utilizing the Optimized Cascade process.

Product Development Center

Soon after forming the Collaboration, the companies established the LNG Product Development Center (PDC) to focus cooperative intellectual effort on continuous improvement of the Optimized Cascade Process, plant operations, project execution costs and schedule, and to jointly market the process.

The PDC is staffed by a full-time program director and personnel drawn from both ConocoPhillips and Bechtel. Oversight of the PDC is facilitated by an Advisory Committee comprised of ConocoPhillips and Bechtel senior management. The Advisory Committee provides guidance in the selection of the various programs and studies undertaken by the PDC.

The PDC works on improvement studies not only for LNG process technology, but on applications to enhance the total plant facility, including overall design, construction and operations. This unique, end-to-end approach or Total Life Cycle Focus, enables the Conoco Phillips-Bechtel Collaboration to look beyond the liquefaction technology itself and into areas having the greatest potential to impact project costs.

Summaries of the relevant study results are then shared with clients to assist in their decisions surrounding their particular process design. This allows owners to make key decisions about plant design early in the project life to minimize the number, time and cost of performing Pre-FEED or FEED studies. It not only reduces the overall project duration and total unit cost, but also maximizes the value to the owner.

Collaboration Achievements

• Plant capacity ranging from 3 to 8 MTPA
• First use of gas turbines and aeroderivative gas turbines in LNG service
• Heavies removal unit integrated within liquefaction plant
• Flashing liquid expanders for increased production
• Waste heat recovery to reduce capital and operating expenses
• New refrigeration driver configurations
• Electric drive and power supply options

Customer Benefits

• New innovations and best practices are quickly incorporated into new designs
• Lower capital cost
• Shorter cycle time resulting in faster time-to-market.
• Train size adaptable to client requirements.
• Improved on-stream reliability.