Application of Risk Analysis in the Liquefied Natural Gas (LNG) Sector: An Overview

In recent years, the global demand for liquefied natural gas (LNG) as an energy source is increasing at a very fast rate. In order to meet this demand, a large number of facilities such as platforms, FPSO (floating production, storage and offloading), FSRU (floating storage and regasification unit) and LNG ships and terminals are required for the storage, processing and transportation of LNG. Failure of any of these facilities may expose the market, companies, personnel and the environment to hazards, hence making the application of risk analysis to the LNG sector a very topical issue throughout the world. To assess the risk of accidents associated with LNG facilities and carriers, various risk analysis approaches have been employed to identify the potential hazards, calculate the probability of accidents, as well as assessing the severity of consequences. Nonetheless, literature on classification of the risk analysis models applied to LNG facilities is very limited. Therefore, to reveal the holistic issues and future perspectives on risk analysis of LNG facilities, a systematic review of the current state-of-the-art research on LNG risk analysis is necessary. The aim of this paper is to review and categorize the published literature about the problems associated with risk analysis of LNG facilities, so as to improve the understanding of stakeholders (researchers, regulators, and practitioners). To achieve this aim, scholarly articles on LNG risk analysis are identified, reviewed, and then categorized according to risk assessment methods (qualitative, semi-qualitative or quantitative; deterministic or probabilistic; conventional or dynamic), tools (ETA, FTA, FMEA/FMECA, Bayesian network), output/strategy (RBI, RBM, RBIM, facility siting, etc.), data sources (OREDA handbook, published literature, UK HSE databases, regulatory agencies' reports, industry datasets, and experts’ consultations), applications (LNG carriers and LNG fuelled ships, LNG terminals and stations, LNG offshore floating units, LNG plants), etc. Our study will not only be useful to researchers engaged in these areas but will also assist regulators, policy makers, and operators of LNG facilities to find the risk analysis models that fit their specific requirements

Condition Assessment, Remaining Useful Life Prediction and Life Extension Decision Making for Offshore Oil and Gas Assets

Offshore oil and gas assets are highly complex structures comprising of several components, designed to have a lifecycle of about 20 to 30 years of working under harsh operational and environmental conditions. These assets, during their operational lifetime, are subjected to various degradation mechanisms such as corrosion, erosion, wear, creep and fatigue cracks. In order to improve economic viability and increase profitability, many operators are looking at extending the lifespan of their assets beyond the original design life, thereby making life extension (LE) an increasingly critical and highly-discussed topic in the offshore oil and gas industry. In order to manage asset aging and meet the LE requirements, offshore oil and gas operators have adopted various approaches such as following maintenance procedures as advised by the original equipment manufacturer (OEM), or using the experience and expertise of engineers and inspectors. However, performing these activities often provides very limited value addition to operators during the LE period of operation. This paper aims to propose a systematic framework to help operators meet LE requirements while optimizing their cost structure. This framework establishes an integration between three individual life assessment modules, namely: condition assessment, remaining useful life (RUL) prediction and LE decision-making. The benefits of the proposed framework are illustrated through a case study involving a three-phase separator system on a platform which was constructed in the mid-1970s in West Africa. The results of this study affirm the effectiveness of this framework in minimizing catastrophic failures during the LE phase of operations, whilst ensuring compliance to regulatory requirements

An integrated FMEA and MCDA based risk management approach to support life extension of subsea facilities in high-pressure–high-temperature (HPHT) conditions

The majority of facilities installed in offshore oil and gas fields during the 1980s and 1990s were designed to operate in ‘normal’ conditions. However, during the operational life of the fields, some new high pressure/high temperature (HPHT) wells may be discovered and tied back to older facilities. Operating these facilities beyond their design parameters in harsh environments may lead to catastrophic failures, resulting in significant economic losses and environmental problems. Managing the risks associated with failure of ageing subsea facilities in HPHT environments is considered as a very complex and critical task. To overcome such challenge, there is a need for development of decision-making methods that are capable of estimating precisely the risks associated with HPHT conditions as well as prioritising the risk mitigation and remediation strategies. This paper aims to propose an integrated risk management framework – based on Failure Mode and Effects Analysis (FMEA) approach and a hybrid Multi-Criteria Decision Analysis (MCDA) model – for evaluating the risks and prioritising mitigation strategies over the extended lifetime of subsea facilities in HPHT environments. For the purpose of illustrating the model, a case study of subsea manifold and flowlines is provided and the results are evaluated and discussed. Our findings indicate that the proposed approach offers significant improvement to the classical risk management processes applied to subsea oil and gas facilities as it can assist asset managers, risk analyst, regulators and policy makers with a decision model which considers both subjective (qualitative) judgements and objective (quantitative) evaluation measures

Status of ISO 45001:2018 implementation in Seaports: A Case Study

Seaports are global players in the maritime industry with the responsibility of promoting the well-being of employees and customers in the workplace. However, over the past years safety performance of seaports operating within the West African sub-region has become a major concern due to the lack of enforcement of national occupational health and safety regulations. This has compelled some seaports to adopt the occupational health and safety management system (OHSMS) ISO 45001:2018 standard. The aim of this study is therefore to assess the progress seaports have made in the implementation of ISO 45001:2018 standard and discuss the challenges that need to be overcome when implementing ISO 45001:2018 standard in seaports. Through the use of questionnaire, observations and review of institutional document, data was gathered from workers and senior managers of export, container depot and the stevedoring sections of seaports operating in Ghana. The findings of this study revealed that seaports within Ghana have made some progress with regards to workers’ awareness of occupational health and safety issues, usage of personal protective equipment (PPEs) and safe working procedures. However, it was also established that a lot more needs to be done to improve the current levels of communication, safety training and resources in relation to health and safety management. The findings of this research are useful to maritime institutions wishing to migrate from OHSAS 18001:2007 certification to ISO 45001:2018 certification or seeking to improve on already existing system

Design Considerations of Subsea Cooling Spool

Abstract Thermal management of subsea pipeline and systems operating in HT/HP fields is major challenge facing the offshore oil and gas industry. Subsea cooling spool is one of the possible solutions to battle this challenge. However, this is an immature technology and more investigations are required to improve its design for future operations. This paper investigates the input variables in order to define the design envelope in terms of practical benefit, input temperature vs. throughput vs. spool length, and verify this by simulations with respect to given design parameters. A mathematical model was developed based on heat transfer theory and simulated using MATLAB. The results indicated that 4.36m of pipe is needed for generating 1 lower temperature output with a gas inlet temperature of 150

Decision Support Methods and Applications in the Upstream Oil and Gas Sector

Decision-making support (DMS) methods are widely used for technical, economic, social and environmental assessments within different energy sectors, including upstream oil and gas, refining and distribution, petrochemical, power generation, nuclear power, solar, biofuels, and wind. The main aim of this paper is to present a comprehensive literature review and classification framework for the latest scholarly research on the application of DMS methods in the upstream oil and gas industry. To achieve this aim, a systematic review is conducted on the current state-of-the-art and future perspectives of various DMS methods applied to different upstream operations (such as exploration, development and production) which take place prior to shipping of crude oil and natural gas to the refineries for processing. Journal and conference proceeding sources that contain literature on the subject are identified, and based on a set of inclusion criteria the related papers are selected and reviewed carefully. A framework is then proposed to classify the literature according to the year and source of publications, type of fossil fuel sources, stages of oil and gas field lifecycle, data collection techniques, decision-making methods, and geographical distribution and location of case studies. The proposed literature classification and content analysis can help upstream oil and gas industry stakeholders such as field owners, asset managers, service providers, policy makers, environmentalist, financial analyst, and regulatory agencies to gain better insight about their business activities with well-informed decision-making processes

Selection of the most Suitable Life Extension Strategy for Ageing Offshore Assets using a Life-Cycle Cost-Benefit Analysis Approach

Purpose: A substantial number of production assets in the offshore oil and gas industry are facing operation beyond their anticipated design life, thus necessitating a service life extension program in the future. Selection of the most suitable strategy among a wide range of potential options to extend the lifetime of equipment (e.g. re-using, reconditioning, remanufacturing, refurbishing and adding on safety/process control measures) remains a challenging task that involves several technical, economic and organizational complexities. In order to tackle this challenge, it is crucial to develop analytical tools and methods capable of evaluating and prioritizing end-of-life strategies with respect to their associated costs and quantifiable benefits. The paper aims to discuss these issues. Design/methodology/approach: This paper presents a life-cycle cost-benefit analysis approach to identify the most suitable life extension strategy for ageing offshore assets by taking into account all the capital, installation, operational, maintenance and risk expenditures during the extended phase of operation. The potential of the proposed methodology is demonstrated through a case study involving a three-phase separator vessel which was constructed in the mid-1970s. Findings: The results from the application case indicate that the capital expenditure (CapEx) accounts for the largest portion of life cycle cost for the replacement strategy, while risk expenditure (RiskEx) is the major contributor to costs associated with life extension. A sensitivity analysis is also conducted to identify factors having the greatest impact on the optimum life extension solution, including oil price, production rate and money interest rate. Practical implications: In the past, the decisions about life extension or replacement of in-service equipment were often made in a qualitative way based on experience and judgment of engineers and inspectors. This study presents a “quantitative” framework to evaluate and compare the costs, benefits and risks associated with life extension strategies and subsequently to select the best strategy based on benefit/cost ratios. Originality/value: To the best of authors’ knowledge, no studies before have applied life cycle assessment and cost-benefit analysis methods to prioritize the potential life extension strategies in the oil and gas industry sector. The proposed approach not only assists decision makers in selecting the most suitable life extension strategy but also helps duty holders reduce the costs corresponding to life extension execution

Decommissioning of deep and ultra-deep water oil and gas pipelines: issues and challenges

Abstract: When production facilities reach the end of their economic life in the offshore oil and gas industry, field owners must decide whether to replace, extend the life of, or decommission assets. The decommissioning of deep and ultra-deep water oil and gas pipelines has become a serious issue in recent years because it is a complex process and presents challenges to stakeholders. In this paper, we review the current practices of pipeline decommissioning in different regions of the world and then highlight issues and challenges related to such activities in deep and ultra-deep waters. These issues and challenges can be broadly categorised into technical (e.g., selection of appropriate decommissioning procedures for handling hazardous pipelines), financial or economic, health and safety legislation, environmental, and human or organisational issues (such as lack of requisite skills, knowledge and expertise). In order to address the challenges identified in the study, some directions for future research are suggested