Linde Introduction

Small Scale LNG Distribution

Michael LUTZRostock, 13th, Oct. 2014

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The Linde Groupbased on two pillars with extensive synergies

The Linde Group

Linde Gas Linde Engineering

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The Linde Group

No presence

#1

#1

#1

#1

South America

South Africa

South and East Asia

GreaterChina

Eastern Europe & Middle East

#2

The Linde Group Global >100 countries, 63’ people & turnover EUR 16.6 bn (2013)

Linde is market leader in 4 out of 5 emerging market regions

04.12.2013 Fußzeile 4

In our Gases Division long term investments include all aspects from source to customer

Gases production plant

Filling centre

Pipeline

Pipeline

On-site supply

Retailer

Transport of liquified gas

Cust

omer

Transport of compressed gas

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Linde main supplier to the Scandinavian LNG development

— AGA part of cluster behind Norway’s first 20 kt/y LNG plant, Trondheim, starting the marine LNG areain Norway

— EPC contractor of 40 kt/y Gasnor Train 1, Bergen

— EPC contractor of 300 kt/y Skangass LNG plant,

Stavanger

— EPCS contractor of 4,3 mt/y Statoil, “Snøhvit”, base

load LNG plant, Hammerfest

— Supplied LNG equipment for LNG onboard storage in

the North Sea to a majority of all current ships

— Built, own and operate Stockholm’s LNG terminal –

first LNG import terminal in the Baltic Sea

— AGA awarded the contract to supply the first large LNG fuelled ship in the Baltic Sea, Viking Grace

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Linde Engineering DivisionGlobal Presence for the LNG Value Chain 2012

Blue Bell

Pullach/Schalchen

Vadodara

Dalian

Tulsa

Gothenburg

Hangzhou

Murray HillHésingue

Technology, Execution & Manufacturing Centers

Major LNG & NGL Extraction EPC Jobs

LNG Facilities Owned & Operated by The Linde Group

Tasmania LNG

Dandenong LNG

Livermore LNGAlbury LNG

Nynäshamn LNGStavanger

Hammerfest

Bergen

Kwinana

Xinjiang

Mossel Bay

Alice Springs

Stuttgart

Constanta

Kollsnes

Ahwaz

Asaluyeh

Jimunai

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Linde heavily engage in the complete value chain for small scale LNG beyond Scandinavia

Gablingen, Germany 21 tons per day

Kwinana, Australia 175 tons per day

Tasmania, Australia 50 tons per day

Bergen, Norway 120 tons per day

Stavanger, Norway 900 tons per day

Shan Shan, China 1,300 tons per day

Small to mid-scale liquefaction plants

Distribution & storage, refueling equipment and components

Linde owned small scale LNG operations

Altamont, CA, USA ScandinaviaAustralia7

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LNG Processing PlantWhat are the main installations?

Main Installations - FunctionaltiesGas Treatment

▸ Removal of water, condensate and other components (e.g. CO2, H2S, Hg, and others)

Liquefaction

▸ Pre-Cooling, liquefaction and sub-cooling using refrigerant cycles

Storage and Loading

▸ Storage under pressure or atmospheric pressure, loading of product by various means

(e.g. ship, truck, etc.)

Safety and Security

▸ Installations for the plant security and process safety such as access control, CCTV, fire

and gas detection, firefighting, emergency shut down, flare, etc.

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LNG Processing PlantWhat else is required?

Utilities - FunctionalitiesPower Generation and Distribution

▸ Power generation by gas turbines, transformation and distribution by switchgear to

various consumers

Instrumentastion and Control Installations

▸ Distributed Control System (DCS), fire and gas detection, control valves, etc.

Nitrogen, Instrument and Plant Air Supply

▸ Generation and storage of nitrogen, instrument and plant air

Run-Off, Sewage and Waste Water Treatment Systems and Installations

▸ Collection of run-off, sewage and other effluents

Buildings

▸ Administration building with central control room, workshop and warehouse

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LNG Processing Plant – Block DiagramHow to keep track and the overview?

Dehydration

CO2 toPipeline

MEG/ pH stab./Corrosion Inhibitorto Pipeline

Feedfrom

Pipeline

Make up

LNG to Ship

LPG to Ship

Condensate to Ship

Cryogenic Units

Natural GasLiquefaction

Drivers andCompressors

Service System forOffshore Installations(HPU, SPCU, SCU,Corrosion Inhibitor)

PowerImport/Export

Fresh WaterImport

Sea Water Import

Exhaust from

Gas Turbinesand Flare

Sea/Waste

Water

Seawater for

Fish Breeding

Waste

Umbilical

Central ControlRoom

LNG PlantOffshore

Communication Telecom

Emissions

to

Atmosphere

Noise

Flare SystemsUtility SystemsLNG Plant

LNG Plant

MercuryRemoval andDehydration

CO2Removal

Pig TrapSlugcatcher

Inlet Facilities

MEGRecovery

CondensateTreatment

LNG Storage

CondensateStorage

LPG Storage

LNG Loading

CondensateLoading

LPG LoadingCO2

Recompression

Fractionation(Refrigerant

Make-up)

Fuels, Gas,Diesel

Tank return gas

Return Gas from Ship

Return Gas from Ship

Return Gas from Ship

Clean Lean MEG

Storage and Loading

Compression and RefrigerationGas Treatment

Safety and Security

Safety and Security

Liquefaction ProcessWhat does a simple expander process look like?

C1

LNG

NG

C2X2

Typicals

— simple process, low equipment count

— nitrogen or mixed refrigerant (N2, CH4) cycle

at one pressure level

— pre-cooling, liquefaction and sub-cooling

realized in one heat exchanger (aluminum

plate fin heat exchanger)

— specific energy consumption approximately

600-700 kWh/t LNG

— investment volume < 50 Mio. €

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General market opportunities for small-scale LNG

Marine Sector Industry & PowerMobilityM/S Bergenfjord (2x 125 m³ tank) LNG truck fuelling station Stockholm Nynäshamn Terminal

Supply of nearby Refinery

Status

— Due to regulation and price

development huge interest by

shipping industry

— More than 20 ships equipped

with tanks from Cryo AB

— Viking Grace from 2013 fuelled

by LNG

Status

— OEMs (Volvo, Westport,

MAN, …) developing

technology

— First LNG refuelling station in

Stockholm in operation, 2 more

to come in 2012

Status

— In stranded areas without

connection to trans-european

grid, gas supply alternative

— Interest from various industries

to substitute other fuels with

natural gas

Price benchmark

— ECA: MGO or HFO + scrubber

— Deep Sea: HFO

Price benchmark

— Diesel

Price benchmark

— LPG, Diesel, Naphtha

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Experience from current operations

Australia Europe, UK & ScandinaviaNorth America

LNG truck fuelling station Stockholm

Status

— Small scale plant capacity

exist on both East and West

coast

— Appreciation of AUD

hampers development

— Lack of suitable vehicles,

OEM backed vehicles

Status

— Huge spread between diesel

and natural gas price

— Oil & Gas industry early

adaptor of LNG to displace

diesel

— Several players announced

significant investments in

infrastructure

Status

— First few stations installed

— Economic drive relative low

but strong interest for bio

methane

— Good cooperation within

industry

LNG truck fuelling station installed October 2012, Victoria

BioLNG plant in Altamont California

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LIN Assist option

LIN'Cold' LNG

Pump

Bulk fill

Bottom

Top

Onboard tank

Two hose option

'Warm' LNG

Bulk tank

Saturator option

Truck Fuel Station (Pumped)

Typical Process Schema

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LNG Truck Fuel Station in UK

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Linde’s Intention: Establish LNG as Alternative Fuel Success Factors

LNG Supply:

• Secured LNG supply from large scale, centralised

entry points (i.e. LNG import terminal) or local LNG

production direct or over small-scale LNG terminals

to customers

• No seasonality for freight haulage as for

established gas markets

• Price formula and contracting according to needs

for heavy truck operation

LNG infrastructure:

• Chicken-egg problem persist – funding to establish

multiple access points to LNG for road transport

network, e.g. public or customer specific

• Established and EU wide harmonized legislation

and standards required

• Technology need to fulfil user and environmental

requirements

Customer:

• Availability of OEM backed products

• Commercially viable business case

Producer/ LNG Supply

Customer/ Fleet operator

Operator /

Infrastructure

Security & cost of supply, availability of

infrastructure and OEM backed products must

come together to generate growth and avoid

disappointment on either side during early

market introduction.

OEM /

Technology

Thank you for your attention.