+100 MTPA of projects in the works: The rise of Chart's IPSMR? liquefaction technology

In less than two decades, Chart Industries, Inc. has made a significant impact on the global LNG industry with its IPSMR? liquefaction technology. Known in the sector for its decades-long expertise with brazed aluminum heat exchangers, the company has quickly secured a leading position in the mid-scale segment. With 29 MTPA of LNG liquefaction across operational and under-construction facilities, Chart has established strategic partnerships with industry leaders like New Fortress Energy , Wison New Energies , 福陆 , JGC and various international O&G and EPC companies. Looking ahead, it has an additional 109 MTPA of IPSMR? liquefaction projects in pre-FEED or FEED stages, with many set to be contracted soon. Chart Industries stands on the brink of a significant expansion in the global LNG market, underlined by recent orders spanning four continents such as:

There is a Limit to Economy of Scale

The discussion around large-scale versus mid-scale LNG has been thoroughly explored, with both offering distinct advantages. I won't be revisiting those points, nor will I be covering the pros and cons of modularization.

While economies of scale are often emphasized in the LNG industry, they also apply to mid-scale projects if the optimal train size is chosen. However, they have their limitations, and beyond certain capacities, sourcing, fabricating, shipping, and installing become increasingly complex and costly. Undersized trains can lead to higher costs per tonne and fall short of the efficiency 'sweet spot,' while oversized trains may miss the optimal cost per tonne. Chart’s IPSMR? process is flexible, offering cold box capacities exceeding 2 MTPA, while the IPSMR?+ configuration supports capacities of over 3 MTPA per train. Both processes leverage Chart’s largest and most efficient brazed aluminum heat exchangers (BAHX) and can be tailored to align with the owner’s preferred drive type.

Additional trains are installed in parallel to reach the desired overall plant capacity. Customers can phase the installation of the trains, maintaining safe working distances between them, as more liquefaction capacity becomes necessary. Phased construction and start-up also enhance productivity and minimize rework.

A Minimized ISBL Footprint

An essential factor in lowering the cost of LNG facilities is minimizing the plot space required per tonne of LNG produced. Chart has explored ways to reduce plot space while maintaining sufficient equipment spacing for safety and maintenance and minimizing any adverse effects on LNG production capacity. The dimensions of air coolers play a key role in determining the plot space needed for the ISBL layout and can potentially increase costs related to site work, concrete, structures, piping, electrical, and instrumentation. The standard approach is to reduce the cost per tonne by optimizing the process design, focusing on ideal BAHX cold box sizes and air cooler dimensions while enhancing the efficiency of the refrigerant compressor.

Based on the feed gas composition and pressure, the key process variables that impact the size and efficiency of liquefaction equipment are BAHX allowable pressure drop, minimum internal temperature difference, and mixed refrigerant composition. For air coolers, the most influential factors are the allowable pressure drop and the process temperature approach to ambient temperature. The efficiency of the compressor is largely determined by the selected pressure ratio per stage and total flow rate. All these variables are optimized as a complete system, aiming to minimize the air cooler footprint with minimal impact on LNG production, while still achieving the customer’s LNG production requirements. This results in a highly efficient process with a minimized ISBL footprint.

Chart’s Heavy Hydrocarbon (HHC) Removal System

One key advantage of Chart’s mid-scale LNG technology is the streamlined design of its Heavy Hydrocarbon (HHC) removal system. Typically, each liquefaction train is equipped with a heavies removal setup that includes a scrub column, heat exchanger assembly, and reflux drum, all housed within a Cold Box. Both the liquefaction and HHC cold boxes are fully assembled, wired, and pressure-tested in the shop, which significantly reduces the need for field construction. Depending on the feed gas composition, pressure, and desired LNG output, the HHC system may also feature additional components such as a reflux pump skid, expander/compressor set, or booster compressor.

A key benefit of the HHC module is that the reflux for the scrub column is self-contained within the system and does not rely on the LNG or condensate systems for reflux supply. This feature is particularly valuable for lean gas compositions. Another notable aspect of Chart’s HHC design is its targeted removal of only the freezing components from the feed gas. This minimizes the flow to the condensate system while maximizing both the LNG product flow and its BTU content. As a result, the design enhances the value of the LNG product while keeping the condensate system compact.

Operational Benefits: Teams Cohesion

When a mid-scale plant is duplicated and standard designs are utilized, the project gains additional benefits, especially when construction, commissioning, and startup are properly staged. Teams that spend time during these three phases learning about the facility and collaborating become more effective and productive. Building strong, collaborative teams ensures that productivity remains high throughout the project. Once the first train is completed, transitioning these teams to the next train provides significant momentum. With the experience of having already completed identical tasks, teams will be more familiar with the work ahead, have a clearer understanding of the finished product, make fewer errors, and be more productive on subsequent trains.

Conclusion

The LNG industry is going through a transformational phase, with many new players, often lacking LNG experience, considering the development of projects. Traditionally, LNG ventures involve multiple phases and extended periods for design, procurement, and construction, requiring significant investment. Investors are now prioritizing shorter payback periods to recover their investments more quickly. Mid-scale LNG offers a solution by enabling faster production, reducing payback time, and enhancing investor returns.

Mid-scale LNG solutions like Chart's IPSMR? provide lower capital and operational expenditures through optimized design methodologies, creating opportunities for new investors in this sector. The focus is on minimizing upfront costs to ensure project feasibility. With Chart having secured a leadership role in this segment, I anticipate growing competition from other major technology licensors, which will ultimately benefit the entire liquefaction industry.

References

Ducote, D. 2019. Selecting the right mid-scale LNG solution with Chart's IPSMR process technology. https://www.gti.energy/wp-content/uploads/2019/10/123-LNG19-03April2019-Ducote-Doug-paper.pdf

Mossberg S., Ducote, D. 2018. The Right Size Solution. LNG Industry November 2018. https://www.oilfieldtechnology.com/magazine/lng-industry/november-2018/