Badak LNG

Image Source : Badak LNG - Plant Operation Page

Location : Bontang, East Kalimantan

The history of Indonesian LNG exports began with the discovery of the Arun Gas field in North Aceh in 1971, immediately followed by discovery of the Badak Gas Field in East Kalimantan in February 1972. In June 1973, an LNG task force of the state owned Pertamina initiated the Badak NGL Project, which would be constructed at Bontang on the eastern cost of Borneo island. The historical “1973 Contract” was signed on December 5^th with 5 Japanese companies: Chubu Electric Co., Kansai Electric Power Co., Kyushu Electric Power Co., Nippon Steel Corp. and Osaka Gas Co. Ltd. to supply LNG for 20 years.

On November 26, 1974, PT Badak NGL was established to build 2 LNG trains at Bontang. Within two and a half years, on 5 July 1977, train A produced Indonesia’s first drop of LNG, resulting in dispatch of maiden LNG cargo to Senboku, Japan aboard “LNG Aquarius” on August 9, 1977. The very next year associated gas was also introduced into the plant in a bid to conserve substantial amount of gas. The success of the project and the signing of a second LNG sale agreement with Japanese buyers, attested the proposal to build 2 additional LNG trains. Train C commenced production on July 8, 1983, while train D joined in on September 2, 1983.

Signing of a third SPA with Chinese Petroleum Company (CPC) in March 1987, culminated in train E coming on stream on December 27, 1989. Likewise, a sales agreement with Korea Gas Corporation (KGC) in May 1991, led to construction of train F, which produced its first LNG on November 11, 1993. The seventh LNG train (train G) became operational on April 12, 1998, on the backing of LNG sales contracts with Japanese Buyers, KGC & CPC. PT Badak NGL’s “8-Trains Master Plan” was completed in November 1999, when train H started production. By 2001, the original project consisting of 2 trains, had expanded to 8 trains, 4 gas pipelines, 6 LNG tanks, 5 LPG tanks and 3 loading docks, producing 22 MMTPA of LNG and 1.2 MMTPA of LPG at peak capacity.

Diminishing supply from the neighbouring gas fields led to reduction of the number of active trains. On January 14, 2013, train A was decommissioned (Long Term Idle – LTI) and by 2016 Badak NGL had only 4 operational trains.¹ On November 8, 2016, the facility dispatched its 9000th shipment of LNG, however the future was looking bleak with up to 32 uncommitted cargoes out of the total 160 cargoes estimated for the next year.²

The plant prides itself on its safety records and accolades, having received the US Safety Council’s “Safety Award” and “Award of Honor” and the British Safety Council’s “Sword of Honour” and “5 Star Safety Award” on multiple occasions. On September 17, 2017, the plant clocked 90 million hours of safety without lost time incident. Since 1996, Badak has established a Continuous Improvement Program (CIP) to motivate employees and improve their problem-solving skills, resulting in increased production, efficiency and safety at the plant. In December 2016, the facility received the OHSAS 18001:2007 certificate for the first time.

Badak LNG’s Corporate Social Responsibility (CSR) program focuses on four pillars: Empowerment, Capacity Building, Charity and Infrastructure Development. The COMDEV programs (Community Development) have created self-reliance and empowerment of Bontang’s society for over 4 decades. The company participates in development programs, covering infrastructures, education, health, religious, youth, sport, support for the handicapped, poverty elevation, community empowerment and business opportunity. Badak also believes in sharing its more than 40 years’ expertise with the LNG industry. The LNG Operation & Maintenance (O&M) and Technical Services provides competent and skilled workforce to several LNG Companies including Statoil Snohvit LNG, Angola LNG, Yemen LNG, BP Berau-Tangguh LNG, and Saipem for FLNG Project in Masela.³

The Badak LNG Biodiversity Information System & Conservation Programme (Badak BISCO) aims at improving biodiversity through preserving endangered flora at the City Forest & Orchid Park, preventing deforestation in the Conservation Forest in situ, transplanting coral reefs using the bioreeftech and Mangrove conservation. The company has achieved Level 8 ISRS8 (International Sustainability Rating System Version 8) from DNV-Norway and is the recipient of Indonesian Ministry of Environment’s PROPER Gold seven times in a row.

OWNERSHIP (Equity %)

PT Pertamina (Persero)	55.00%
Japan Indonesia LNG Company (JILCO)	15.00%
BP (50% Owner of VICO Indonesia)	10.00%
Eni (50% Owner of VICO Indonesia)	10.00%
Total E&P Indonesia (TOTAL)	10.00%

General Data

Estimated Capital Cost (USD)	NA
Plant Type	Onshore
Plant Stage	Decommissioned(Train A&B) Operating(Train E to H)
Final Investment Decision (FID) Year	NA(Train A&B) 1980(Train C&D)
FEED Contractor	Chiyoda Corporation(Train A to G) KBR(Train E to H)
EPC Contractor	Chiyoda Corporation(Train A to G) KBR(Train E to H)
No. of Trains / capacity	8 Trains / 2.7 MMTPA each(Train A to D) 2.9 MMTPA each(Train E to G) 3 MMTPA(Train H)
Production Start Year	1977(Train A&B) 1983(Train C&D) 1989(Train E) 1993(Train F) 1998(Train G) 1999(Train H)
Products	LNG, LPG, Condensate, Propane, Butane
Gas Type	Non-associated Gas (NAG)

Technical Data

Cooling Media	Seawater
Liquefaction Technology	APCI AP-C3MR™
Refrigeration Train Details:
Propane String
Driver	Steam Turbine (41MW)
Propane Compressor	Horizontally Split Centrifugal Compressor
Low Pressure (LP) Mixed Refrigerant (MR) String
Driver	Steam Turbine (33MW)
LP MR Compressor	Horizontally Split Centrifugal Compressor
HP Mixed Refrigerant (MR) String
Driver	Steam Turbine (33MW)
HP MR Compressor	Radially Split Centrifugal Compressor

Refrigeration Train Configuration

Key Facts

During the first two decades of operation, Badak LNG suffered from several reliability issues that resulted in lost or reduced production. These included:
> Problems in the CO2 removal unit due to erosion / corrosion. This was corrected by partial upgradation of the carbon steel piping to stainless steel.
> Multiple cracks/failures of the first stage impeller of the multi component refrigerant (MCR or MR) compressor due to unacceptable blade natural frequency for the design operating speed. This required redesign of the impeller with a more suitable material.
> Problems in the MCR Compressor Inter & After Coolers due to leakage of on account of seawater corrosion and tube scaling. To address this issue, the Cu-Ni tubes were replaced by fine fin Titanium tubes.
> Inadequate distribution of cooling water in the cooling water due to tube leaks. A study was conducted to identify and optimize the cooling water distribution, and the recommendations were implemented to eliminate the problems.

In 1996 a Reliability Centered Maintenance (RCM) analysis was conducted to address reliability issues. Between 1997 – 2002 substantial improvement of Production Reliability Factor (PRF) was achieved resulting in better plant uptime. By 2001, Badak LNG was recognized for best-in-class asset utilization by a Shell Global Solutions benchmarking survey.⁴
Between 1986-1990, 16 Steam Turbine Rotors were overhauled under PT Badak’s proactive maintenance program. Majority of the rotor issues were on account of corrosion pitting, stress corrosion cracking, corrosion fatigue and blade deposit, excessive sodium in the boiler feed water(BFW). The corrosion and chemical deposits were reduced through improving steam quality, by controlling boiler PH, correcting mechanical separator problems, improving boiler feed water quality, increasing boiler blowdown rate, and better sodium trace monitoring.⁵
In 1992-93 Train A, B, C & D underwent debottlenecking to achieve 36% increase in power from the Propane Compressor & the MCR 1^st and 2^nd stage compressor, as well as upgrading the propane compressor steam turbine driver and the cooler tube bundle material. capacity was uprated from 640 m3/h to 703 m3/h. A 162% of the original nameplate capacity was achieved in trains A & B.⁵
Trains E & F completed debottlenecking process in year 2000.⁵
In February 2010, Badak LNG became the first oil and gas company to receive Level 8 ISRS 7 (International Sustainability Rating System Version 7) from DNV-Norway. Following which, in December 2010, Badak became the first oil and gas company to be awarded ISRS 8 Level 8.⁶
Bontang has a nameplate capacity of 22.5 MMTPA, however, its annual production peaked at 21.4 MMT in 2001. Post 2003, LNG production started reduciong due to a decline in gas reserves. In 2017, Badak LNG produced only 7 MMT of LNG.⁷
Since 2004, the Badak Learning Center has provided on-the-job training to personnel from various LNG projects and companies across the world. Badak has trained for several international companies, including Statoil, Angola LNG, Sempra Energy, Dominino Energy, Eni, Tangguh LNG, Osaka Gas and Kogas. Badak LNG also offers operations and maintenance services to other LNG plants. Its clients include Statoil Snohvit LNG, Angola LNG, Yemen LNG, BP Berau-Tangguh LNG, and Saipem for FLNG Project in Masela.⁸
In September 1977, while the filling the cargo tank of LNG Aquarius at Bontang, LNG overflowed through the vent mast. A malfunction in the liquid level gauge system may have caused the incident, which is known as the Aquarius Spill.⁹
In April 1983, over-pressurization of the heat exchanger resulted in an explosion causing rupture in the LNG plant. The exchanger, designed to operate at 25.5 psig, achieved gas pressure of 500 psig, due to a closed valve on a blowdown line.⁹
Badak LNG’s Train A to D used copper alloy tubes for seawater cooling. However, multiple tube failures occurred due to seawater corrosion, resulting in unexpected and costly shutdowns. The primary cause was identified as calcium carbonate scales formed at high tube wall temperatures, or hot spots along with sulfide. Many attempts were made to rectify this issue. Finally, the exchangers were replaced with titanium tubes. The successful solution was later also applied to Trains E to G.¹⁰
Badak LNG’s major buyers include JERA, Kansai Electric, Chubu Electric, Kyushu Electric, Osaka Gas, Toho Gas, Nippon Steel Co., Toho Gas, Chinese Petroleum Company (CPC), Hiroshima Gas, Nippon Gas, KOGAS, etc.¹¹
Since 2004, Badak LNG has faced several challenges, which have resulted in significant downfall in LNG production. The issues include:^12,13,14
> Gas supply problems due to maintenance, accident or low field performance
> Lack of investment incentives due to absence of penalty clauses in sale contracts and unclear responsibilities for maintenance and upgradation
> Rise in gas demand from the fertilizer plants which are prioritized by the government of the country.
In the 1970s, Badak LNG became the first LNG plant to use sulfur in its Mercury Removal Unit (MRU). Mercury reacts with the sulfur to form mercuric sulfide, which remains in the sorbent. The mercury removal bed was installed downstream of the molecular sieve gas dehydrator.¹⁵
Badak LNG prides on its culture of innovation and holds 14 patents:¹⁶
> T-Plug Installer
> Drying Oven
> Crab Shell Biscuit
> Cooldown Startup Method
> Shutdown Method to Prevent Thermal shock
> Expansion Joint Tugboat
> Intelligent Pontoon
> Ground Fault Locator
> Water Purifier
> Water Purifier Lengthwise Metal Protection for Water Steam Trap
> Corrosion Early Detection Tools
> The Shutdown Main Cryogenic Heat Exchanger (MCHE) Method
> The Filling of Propana Evaporator using Liquid Propana
> Tellerette Packing Thrower Tools in Tower Type Aerator Unit