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2005 Annual Report - SBM Offshore

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<strong>Report</strong> of the Board of Management<br />

In special areas having offshore subterranean salt deposits,<br />

like the Gulf of Mexico, Floating Regasification Units (FRUs)<br />

can be used to offload and regasify LNG, sending the gas<br />

directly to subsea salt cavern storage and / or pipeline. These<br />

FRUs have much larger heat exchangers to rapidly warm the<br />

offloaded gases. The system can also be combined with<br />

partial storage as on an FSRU to reduce the size of the<br />

regasification system or to minimise the standby time of the<br />

trading vessel.<br />

Ship-to-Ship Transfer of LNG<br />

The offloading of standard carriers must be done using midship<br />

manifolds. Presently the lack of cryogenic hose<br />

technology requires this offloading to be done in a side-byside<br />

mode with cryogenic loading arms. Side-by-side (SBS)<br />

mooring and loading arms presently have only been proven<br />

for relatively small sea states.<br />

To increase the applicability of the FSRUs to more than the<br />

benign proven sea states, development work has focused on<br />

higher capacity SBS berthing and mooring applications as<br />

well as a new more capable dynamic loading arm.<br />

A Soft Quay Mooring (SQM) system has been developed to<br />

increase both the safety of the berthing operation as well as<br />

the offloading sea state threshold. The SQM consists of a<br />

weighted quay suspended from articulated arms held 20 to<br />

30 metres away from the side of the FSRU. This quay holds<br />

Full scale testing of a toroidal cryogenic swivel at the Company’s testing<br />

facility in the South of France<br />

40<br />

A ‘Soft Quay Mooring’ allows offloading of an LNG carrier into an FSRU<br />

at high sea states<br />

the carrier at a much greater distance than possible with<br />

normal side-by-side mooring fenders. This distance provides<br />

an ample space to avoid contact between the LNG carrier<br />

and the FSRU, both during berthing and offloading<br />

operations. Should the berthing carrier approach the SQM<br />

too fast, the articulating arms will deflect and absorb the<br />

carrier momentum without suffering any damage.<br />

Berthing during the higher sea states possible with this new<br />

side-by-side SQM will result in much higher differential<br />

motions for the cryogenic loading arms transferring the<br />

cargo. Presently there are no commercially available loading<br />

arms that can meet these larger requirements. To make this<br />

type of loading arm available for these higher sea states a<br />

development is being progressed jointly with a loading arm<br />

manufacturer.<br />

Cryogenic Swivels<br />

Cryogenic swivels capable of long continuous operation<br />

below the minus 162 degree Celsius temperature of LNG at<br />

atmospheric pressure, are required for single point mooring<br />

LNG loading systems. An in-line LNG swivel was tested in<br />

2004 for a 5 year simulated life with LNG. This test was used<br />

to qualify seals and materials for a larger toroidal LNG swivel<br />

required for the Company’s single point LNG SPM loading<br />

systems. The stages of design, fabrication and assembly of a<br />

20 inch toroidal swivel were completed in <strong>2005</strong>. This swivel is<br />

currently under test and will be certified for its intended use<br />

in the second quarter of 2006.

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