Gazprom Turns to Lanner Simulation as Shtokman Development Prepares for Phase 1 Development (Russia)

Lanner Group experts have completed a project for energy supplier Gazprom as the Russian giant prepares to execute Phase 1 of the Shtokman liquefied natural gas (LNG) project in the Russian Arctic region.

Gazprom, the majority owner (51%) in the Shtokman Development joint venture, appointed leading process modeling specialist Lanner Group as its simulation partner to support preparations ahead of the start of Shtokman Phase 1 program.

The complexities presented by Shtokman’s location, harsh weather conditions and remote location meant that Gazprom and its Phase 1 partners, Total of France, and Norway’s Statoil needed to plan prudently for the future operation of the field. Lanner consultants were tasked to develop a detailed simulation of proposed operations, including a wide range of variables, such as weather, shipping options potential equipment downtime.

The resulting simulation model was tailored to allow Gazprom to rigorously assess the specific challenges associated with the location of the Shtokman field and peculiarities of upstream complex performance. Conditions in the Arctic can be harsh and needed to be fully taken into account, including relevant weather data for all routes that ships might take.

The model also provided answers to questions such as what fleet configuration would be most logistically effective for various marketing scenarios and what would also be used to test the reliability of the supply chain and to gauge potential risks. It also captured detailed research on the performance of upstream equipment. Unlike most models, which average out performance statistics over a set period of time, Lanner’s Shtokman model covered LNG plant and gas production performance.

Frederik Smits van Oyen, Business Development Manager at Gazprom Global LNG, said, “Lanner was able to demonstrate in-depth knowledge and understanding of the logistics involved in delivering LNG, as well as experience of dozens of similar, complex projects. It understands the key levers and the drivers of efficient LNG transportation.”

Gazprom also plans to continue using simulation modeling to test different scenarios and ensure that factors that are likely to have an impact are built in, says Frederik Smits van Oyen, “We are working continuously to challenge ourselves and improve the reliability of our operations.”

He continues, “Ability to run the field in a virtual environment means that we are well prepared for the future. This is all about our ability to deliver LNG across different markets confidently and reliably.”

The Shtokman field, located more than 310 miles off the coast of Russia in the Barents Sea, may contain 3.9 trillion cubic meters of gas resources. The venture aims to build a plant capable of producing 7.5 million tons of liquefied natural gas a year after output is started.

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Source: Lanner Group, March 4, 2011;