MIZED PERFORMANCE WEBINARS

BUSINESS ACUMEN
SERIES
MODULARIZATION

uesday, December 12th, 2024

INTRODUCTIONS

Erica V. Teitelbaum Ron Vis David N. Gardner

Host & Producer Project Director Senior Manager, Proposals, Plant
Layout & Modularization

Host & Producer Guest Speaker Guest Speaker

INTRODUCTIONS – Ron Vis

Ron Vis
Sr. Project Manager
The Hague , The Netherlands
25 Years with McDermott
Married & 3 kids
Sailing, Golfing & Motorbike
INTRODUCTIONS – David Gardner
 Location: Houston, USA
 E-mail & Phone Number: [email protected], +1 713-375-8580
 Profile Summary:
 GEN Technical Authority - CoP Piping, Plant Layout & Modularization
 Senior Manager, Proposals, Plant Layout, Modularization & Visualization
 Holds Bachelor of Engineering (Mechanical) Degree.
 Has 49 years experience in the petro-chemical & Oil & Gas industries.
Split between On-Shore 27 Years & Off-Shore 22 years. Total 2/3D CAD experience 39 Years.
 Expert in Proposals, Pre-Feed, FEED & EPC, detailed engineering of Fractionation columns, Reciprocating/Centrifugal
Compressors etc., Modules (all sizes) in Europe, Middle East & the Americas.
 Familiar with the vast majority of International and American design codes.
 Worked with & for major on-shore & off-shore clients.
 Various 3D visualizations for publications (Oil & Gas Journal - LNG Poster), conferences & clients.
Including 2D visuals & 3D model videos.
 What can I do for you?:
 Support on Basic to Advanced Plant Layout & Piping Design, Modularization.
3D CAD:- PDS, PDMS, E3D, AutoCAD Plant 3D, Infraworks, Navisworks & XR/VR.
 My Message to Team:
 For any particular layout issue, there can be many “right” answers. I can help find the optimal “Fit For Purpose” solution.
SAFETY MOMENT
WELLBEING WISDOM:
QUICK TIPS FOR A BRIGHT DAY!
1. Laughter Break
2. Desk-Exercise Delight
3. Mindful Munching
4. Tech Timeout
5. Gratitude Graffiti
6. DIY De-Stress Kit
7. Nature Connection
8. Random Acts of Kindness
9. Power of Positivity Playlist
10.Breath Breaks
CONTENT
Part 1 – How it’s Done and CoP
 Modularization Movie Trailer
 Why Modularization?
 The Beginning
 How it’s done (Onshore Projects)
 Cost Estimating
 Fabrication Yards
 Onshore/Offshore Differences
 Community of Practice (CoP)
Part 2 – Recent Projects - coming in 2024
 Offshore Modularization (Projects)
 Onshore Modularization (Projects)
 Onshore Modularization (Studies)
 Summary & Q&A
PART 1
MODULARIZATION VIDEO TRAILER
 Modularization Planning
o unifi PMEP (CII – PPMOF)
o Module Grouping of Process Equipment
o Plot Plan Development & Assessment (Module List)
 Transport Study
o Yard to Site Route
o Using Infraworks to study site Locale prior to site trip
o On-Site Module Logistics
 Module Construction
o Typical Yard
o Pancake Module Construction
o Large Equipment Installation
o Testing
 Module Transport
o BB3
o GCGV
VIDEO PLACE HOLDER
MODULARIZATION QUESTIONS
 What is Modularization?
 Types of Modules?
 Benefits for Modularization?
 How do we use Modularization
in our projects?
 Why is Modularization
important?
 Understanding how it works?
 What are the challenges?
 What is the future of
modularization in our
business?
 WHY
MODULARIZA
TION?
MOTIVATORS & DRIVERS

McDermott Drivers:
 Revenue through McDermott fabrication yards
 EPF as “One Stop Shop” delivery
REF. 2022 SUSTAINABILITY REPORT - MCDERMOTT

179,343T
of Modular
fabrication
completed up-to
2022
 THE
BEGINNIING
THE BEGINNING

2014 Chevron Gorgon FLNG

Gorgon Expansion Project (GEP) - LNG train 4 Study
From Offshore to Onshore
THE BEGINNING - CHEVRON GORGON FLNG (2014)
GEP - BACKGROUND AND OVERVIEW
 What is the Gorgon Expansion Project?
An opportunity to enhance the value of
the Gorgon Project by accelerating the
Monetisation of existing and recently
discovered Greater Gorgon Area gas
resources with a 4th LNG train

 Underpinned by the Chandon and

Geryon Gas Fields (tie-ins)
 Subsea infrastructure and production
pipelines
 Inlet facilities at LNG Plant
 Incremental process and utilities
 4th Train (5.2 MTPA APCI C3/MR)
 3rd LNG tank
GEP - TRAIN 4 PROJECT OBJECTIVE

Maximise Modularisation
To
Minimise Site Work
GEP TRAIN 4 PROCESS OVERVIEW
Module I – Gas Treatment Module II – Liquefaction

Module III
C3 Refrigeration

Module IV
Stabilization & Fractionation
GEP - VERY LARGE MODULES
Concept - Apply an offshore design/construction/fabrication approach to develop very large
(~20,000 te) modules for onshore LNG plants

 Main driver is to remove construction activity from Barrow Island by

maximising work in the fabrication yard (including pre-commissioning).
 Key Findings
 20,000 te module for GFP type trains appears feasible
 Can be fabricated, pre-commissioned, transported, and installed at BWI
 Vastly reduced footprint with the opportunity to further reduce
 Potential cost savings of $1B - $3B+

 Fabrication / Construction / Pre-commissioning occurs at one location (Substantial

commissioning occurs prior to load-out and shipping to site)

 Land transport via SPMT units.

GEP PLOT PLAN - MODULE BREAKDOWN

Module IV
Module V Stabilization &
Inlet Facilities Fractionation

Module VI
MEG

Module III
C3 Refrigeration

Module I
Gas Treatment
Module II
Liquefaction
HOW IT’S
DONE
MODUARLIZED PROJECT EXECUTION - WORKFLOW
• Initial Project Evaluation (PMEP)
• Modularization Philosophy Modularization is a Project
Logistics & Initial • Logistics Study Management Activity that relies apon:
Assessment • Logistic envelopes and pricing
 Integrated Work Processes
• Fabrication Yard(s) Assessment
• Stick-built v’s Modular Plot Plan  Team Competency & Experience

• Modularization Design Basis

• Modularization analysis: plant & equipment
Modularization • Execution Planning & Constructability
• Labour assessment
Set Concept • T&I assessment
• Cost & Schedule evaluation

• Project Execution
SMART Modularization: Design, • Supply Chain Integration
“One Size does not Fit All” Procurement & • Standardisation & Design
Fabrication • Fabrication Yard Works
Evaluate & Decide • Site Construction
• Module Installation & hook-up
Implement • Commissioning & Start-up
Source: PED-MOD-PR-00300.00 Modularization Execution `
MDA EXECUTION STRATEGY
Gross
Dimensions
Module Type Weight
(WxHXL)
(Tons)
Type I: Truckable
PARs 3x3x20 50-200
PAUs 3x3x20 50-200
Type II: Module
PARs-1 25x25x80 250-500
PARs-2 25x25x80 800-2500
PAUs-1 30x40x35 2000-9000
PAUs-1 35x40x35 500-2500
Type III: Mega Modules
PARs 30x40x35 4000-10000

Initial Engagement
PAUs 40x45x40 2500-4000

Reference Process,
and Evaluation - PMEP Plot Review and
Module List
Optimization
Development

Modularization
Modularization Modularization
Schedule and Cost Study Report
Modularization
Assessment
transport and Logistics
Site constraints Assessment
Assessment
and Path of Construction:
Transport Study by other
SIZES OF MODULES & CONSIDERATIONS
Truckable
Stick Built

Mid to Large
 Removal of select  Potential for significant
scope items from site reduction to onsite works Mega
 Limited transportation  Module envelope to suit local
envelope required infrastructure & site  Requires increased module
 Conventional constraints
envelope
construction technique
 May require strategic
 Large scale mobilization
infrastructure upgrades (entry
of personnel and
Truckable Mid to Large port, access roads, etc.)
equipment to project site
Modules Modules  Suits greenfield developments
on one time basis
with marine access
 Represents business as
 Potential to reduce plot area &
usual for Middle East
bulk quantities
construction industry
Mega  Moves significant portion of
Stick-Built Modules hook-up & pre-commissioning
away from site
KEY DRIVERS (RED) AND CONSIDERATIONS
REDUCED CRAFT AVAILABILITY
OPTIMIZED DESIGN Why Modularization? & SKILL LEVEL RISK

STICK-BUILT

MODULARIZED

IMPROVED SCHEDULE CERTAINTY EXECUTION

REDUCE CONGESTION AT SITE

EXECUTION

REDUCE SOCIAL AND

ENVIRONMENTAL IMPACT KEY DRIVERS
REDUCE SITE CONSTRAINTS

IMPROVED SAFETY MITIGATE REDUCTION IN

WEATHER IMPACTS IMPROVED MATERIAL
& QUALITY MANAGEMENT CONSTRUCTION COSTS
KEYS TO SUCCESSFUL MODULARIZATION
 Early, initial engagement and evaluation of project suitability - PMEP.
 Early development and focused effort on planning and AWP.
 Correct hours allocation during conception, FEED and execution critical to success.
 Development sequence of module placement on site.
 Backward pass-through CSU, construction, module assembly, fabrication,
procurement and engineering & design for alignment on protecting the plan.
 Early release and pre-buys of bulk commodities.
 Early release of interconnecting racks to IFC and Site.
 Experienced skilled personnel for development and execution.
 Correct choice of execution model at module yard(s).
 Full use of McDermott systems and procedures.
 Management & completion teams at module facilities.
 Comprehensive completion packaging, integration with site.
 Strong collaborative integrated team approach required.
 For critical path modules McDermott delivering to McDermott
 COST
ESTIMATING
MODULE INFORMATION (QMW)
Yamal LNG GCGV MEG

Fabrication Engineering Bulk Procurement, Fabrication, Mechanical Completion, Weighing, Load out Fabrication Engineering, Bulk Procurement, Fabrication, Mechanical Completion, Commissioning, Weighing, Load out

Total Module Heaviest Fabrication Steel Heaviest Critical Lifting Heaviest

Fabrication Peak Month Piping - CS Piping - Exotic Cabling Mechanical Repair Rate Repair Rate
Project Weight Module Duration Structure Equipment >100 MT Lifting Weight TRIR
Mhrs Headcount (Dia Inch) (Dia Inch) (M) (EA) - Structure - Piping
(MT) (MT) (Months) (MT) (MT) (EA) (MT)

Yamal LNG 11,794 4,215 4,638,691 1,920 14 8,172 63,159 44,957 216,695 56 122.9 33 646.3 UT 1.43% by Length RT 2.99% by Joint 0.05

GCGV MEG 30,895 7,515 9,208,857 2,427 24 14,967 179,635 131,947 349,279 228 844.8 117 844.8 UT 0.75% by Length RT 1.84% by Joint 0.02
INDICATIVE ALL-IN REGIONAL COST
COST COMPARISON Stick-build vs Modules
 MODULE
FABRICATION
MCDERMOTT YARDS
MCDERMOTT FABRICATION FACILITIES
Location Capacity TPY

Dubai, UAE 55,500

Batam, Indonesia 66,000

Qingdao, China 60,000

Altamira, Mexico 55,000

Chonburi, Thailand 15,000

Ras Laffan, Qatar 8,500

RAK
Subtotal 260,000

Ras Al Khair (Safira) 40K – 80K

260,000+ TPY in
house capacity

Yards Strategically
Located

Permanent Trained
Workforce
SAFIRA YARD & RAK INDUSTRIAL COMPLEX
LAYOUT
SAFIRA, SAUDI ARABIA (UNDER
CONSTRUCTION)
Expected Fabrication Capability
 Initial : 3 Million
MHrs/Yr
 Interim : 12 Million MHrs/Yr
 Final : 16 Million
MHrs/Yr
SAFIRA, SAUDI ARABIA (UNDER
CONSTRUCTION)
 ONSHORE -
OFFSHORE
DESIGN & EXECUTION
DIFFERENCES &
CHALLENGES
ONSHORE - OFFSHORE
DESIGN AND FUNCTIONAL DIFFERENCES
Offshore Modules Onshore Modules
 Dimension set by functionality and max. installation weight  Dimension set by on-land logistical limitations
 Single lift or Float-over installation  Designed for selective transportation conditions
 Integrated with Process, Utilities, LQ, MCC, CCR and SGS  SPMT or Truckable transport
 Designed for life-time Offshore survival conditions  Sectionalized per process system
 Up to 30,000 metric Ton  Ranging from
 Multi- deck arrangement with:  small 50 – 100 metric Ton
 Tubular legs, deck girders and tubular cross bracings  mid 100 – 5000 metric Ton
 large 5000 – 10,000+ metric Ton
 Cast steel Connections nodes all fully welded……..
 Multi- deck arrangement with:
 Tubular or H-Beam legs,
 H-Beams girders and secondary steel
 Tubular or H-Beam cross bracing
 Welded or Bolted Connections
DESIGN AND EXECUTION CHALLENGES
Brainstorming on
 Welded or Bolted Main-steel-frame construction
 Painted versus galvanizing
 Steel pre-fabrication in-house or subcontracting
 Piping pre-fabrication in-house or subcontracting
 Pipe supports
 Pipe racks
 Local Electrical Room & Local Instrument Room
 Assembly method – Pancake versus Frame
 Procurement & Supply
 Logistics at the yards
 Project Controls
 ETC…………..
FABRICATION EXECUTION SEQUENCE

Project data:
• 100,000 metricTon (Cracker Modules)
• 130,000 m2 laydown area
• 20 Million fabr. hours
MODULARIZATION
COMMUNITY OF
PRACTICE
CoP MISSION
To be a McDermott knowledge center for Engineering, Procurement &
Fabrication of Onshore Modules in the Energy Sector.
 Create a CoP team (in progress)
 Maintain modularization tools, procedures and plans
 Support proposals involving modularization
 Provide advisory services to modular projects
 Promote McDermott modular execution
 Maintain/set-up fabrication yard database
 Maintain modular experience record
 Assemble cost data for estimates and benchmarking
 Assemble lessons learned
 Generate best practices
 Modularization Academy update…………
 ETC……………..
CoP TEAM
The CoP for Modularization team will consist of people from:-
 All Engineering disciplines
 SCM incl. Procurement and Logistics
 Project controls, planning & scheduling
 Construction
 Fabrication yard representatives
 Cost Estimating
 SME’s/TA’s
 Volunteers ? ?
 Specialists ? ?
 ………………
CoP TOOLS
 InSITE is McDermott’s common SharePoint area where our
Modularization capabilities are presented to the entire company.

 Unifi provides McDermott’s standard workflows and procedures

related to / for modularization (for engineering, construction &
fabrication functions).

 The Global Engineering Library (GEL) holds engineering tools to

use on our modularization projects (standard in-house calculation
spreadsheets, 3rd party software, deliverable templates, go-by’s).

 The CoP-Modularization Teams is used by the team-members for

collaboration (meetings, technical discussion) and to store
supporting background information.
https://mcdermottinc.sharepoint.com/:u:/r/sites/Engineering/SitePag
es/CoP-for-Modularization-(Work-In-Progress).aspx?csf=1&web=1
&e=QeGzgr
Q&A
THANK YOU!