GasTech 2005

By Joe T. Verghese

ABB Lummus Global Inc.

15th March 2005, Bilbao

Monetizing the Smaller Gas Reserves

Niche LNG –Technology for Mid-Scale LNG Applications

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Overview

Stranded Gas – The Geography and Key Drivers

Niche LNG Technology

Envelope of Application

Technology Deployment Offshore

- Niche LNG FPSO

Delivered LNG Economics

‘Approval in Principle’ Program

Conclusions

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80

90

100

110

120

‘90 ‘93 ‘96 ‘99

Coal

Oil

Gas

‘02

The Energy Mix

The Energy Mix is getting lighter

Inde

xIn

dex

Gas now 25% of Gas now 25% of Primary Energy Primary Energy ConsumptionConsumption

Nuclear8%

Coal25%

Hydro3%

Oil39%

Natural Gas25%

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. -4Niche LNG to Key Regional Markets

Import MarketsStranded Gas

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ABB LNG Turbo-Expander Technologies

c

c

BAHX

Inlet Gas Stream AfterTreating and Dehydration Expander

Expander Outlet Separator

LNG Production Flash

Propane RefrigerantTo/From

Booster Compressor

Recycle Compressor

Rec

ycle

Stre

am

LNG-Pro Scheme(U.S. Pat 5,755,114)

This scheme is the intellectualproperty of the Randall Division of

ABB Lummus Global Inc.

BAHX

Methane RecycleCompressor

Nitrogen RecycleCompressor

Methane Expander

Nitrogen Expander

Liquid Expander

Intellectual Property of ABB Lummus GlobalU.S.Patent 6,412,302Embodiment 'B'

Methane Expansion + Propane Refrigeration

Dual Expansion Methane / Nitrogen

Propane Pre-Cooled Dual Expansion Methane / Nitrogen

BAHXTreated Inlet Gas

Methane RecycleCompressor

Nitrogen RecycleCompressor

Intellectual Property of ABB Lummus GlobalU.S.Patent 6,412,302

Embodiment 'C' Propane Pre-Cooled

HL Chiller

Methane Expander

Nitrogen Expander

Liquid Expander

LL Chiller

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1-15- 0601

1-16- 0602

1-15-0603

1-12-0601

PROCESS FLOW SCHEME

1-11-0602

1-15-0601Gas/ Gas

Heat Exchanger

1-16-0602LNG Receiver

1-12-0601Methane Expander/

Booster Comp.

1-15-0602Methane Booster

Comp. After Cooler

LC

PC

1-12-0602

1-15-0602

1-15-0605

1-15-06061-15-0607

1-11-0601Methane Compressor

1-12-0602N2 Expander/

Booster Comp.

1-15-0605N2 Booster

Comp. After Cooler

1-11-0602N2 Compressor

1-15-0606N2 Compressor

First Inter-stage Cooler

TC

1-11-0601Notes 1 & 2

Notes :1. Suction scrubbers shall be provided by thecompressor vendor.

TC

PC

1-15-0603Methane Compressor

Inter-stage Cooler

1- 15- 0608N2 Compressor

After Cooler

2. No. of stages to be confirmed by the vendor

Notes 1 & 2From 21-0502

001B

No.

101 103

104

105

106

401

405

406 407

201

202

203

251 253

254

255

351

352

353

354 355356

301 302 303

3. Compressor type is not final

1-15-06041- 15- 0604

Methane CompressorAfter Cooler

CompressedFeed Gas

LNG To Storage

Vent

1-15-0608

1-15-0607N2 Compressor

Second Inter-stage Cooler

PCEnd-flash To Boill-off

Compressor

FromBoill-off Compressor

NicheLNG Process Schematic

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Gas Liquefaction

Liquefaction Zone for Most Mixed Refrigerant Processes

Liquefaction Zone for Turboexpander Processes

Cooling

Liquefaction

Subcooling

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Application Bands for LNG

1000

700

5003.3

4.6

6.6

0.3 50

FIELDRESERVES (TCF)

PRODUCTIONRATE (MMscfd)

Niche LNG

BaseloadLNG

Stranded Gas

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Typical gas reserve potential for Niche LNG:0.5 to 3.0 TCF

Niche LNG production potential:0.5 to 1.5 million tonnes per annum

versus

Typical gas reserve potential for baseload LNG:5 TCF+

Baseload LNG production potential:3 to 8 million tonnes per annum/train

Envelope of Application

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0

Cascade Refrigeration

PropaneCompressor

EthyleneCompressor

Methane Compressor

LNG Pumps

Cold Box

PretreatedFeed Gas

LNG Productto Storage

14 kW/ton LNG day

•• SMRSMR•• DMRDMR•• CMRCMR•• PricoPrico•• APCIAPCI

Spiral WoundExchanger

Pretreated Feed Gas

LNG Product Pumps

LNG Product to Storage

Mixed RefrigerantCompressor

Propane RefrigerantCompressor

Propane Pre-Cooling System

To Fuel Gas

Mixed Refrigerants

12.2 to 16.8 kW/ton LNG day

BAHX

Treated Inlet Gas

Methane Booster Methane Recy cleCompressor

Nitrogen Recy cleCompressor

Methane Expander Nitrogen Expander

Liquid Expander

Production of LNG Using Dual Independent Expander Refrigeration CyclesIntellectual Property of ABB Lummus Global

Patent Pending

Embodiment 'A'

Nitrogen Booster

BAHXTreated Inlet Gas

Methane RecycleCompressor

Nitrogen RecycleCompressor

Intellectual Property of ABB Lummus GlobalPatent Pending

Embodiment 'C' Propane Pre-Cooled

HL Chiller

Methane Expander

Nitrogen Expander

Liquid Expander

LL Chiller

Turbo-Expander Cycles

12.5 to 16.5 kW/ton LNG day

LNG Processes - Specific Energy

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1

Benefits:Safe Operation - Simplicity ofOperation - High Reliability - CostEffective

Lower CAPEX

Optimized Procurement CycleHigh Operational Availability (~ 3 years)

Reduced Plot Area

Minimal Flare RequirementsNo Motion Impact

ABB LNG Turbo-Expander Technologies

We Achieved:Process Simplicity

Low Equipment Count

Use of proven standard equipment (compressors, expanders, plate-fins)

High Degree of Modularization

No Refrigerant Inventory

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2

MethaneCompressor

NitrogenCompressor

Methane Cycle Methane to BAHX

Nitrogen To BAHXNitrogen Cycle

Plate Fin Heat Exchanger Turbo-Expander

Gas Turbine Compression String

Equipment Components

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3Equipment Selection - Compression and Drivers

(Non Pre-Cooled Basis)Frame 5 LM2500 LM2500+ LM6000 Frame 6 Frame 7

BHP @ 85 F 33,400 28,260 34,795 48,580 47,775 95,165

Fuel Rate(Btu/HP.hr) 9,230 7,180 6,701 6,760 8,147 8,025

MMscfd 70-75 60-65 75 100-105 100-105 200-210

MMTPA 0.45-0.5 0.4-0.43 0.5-0.55 0.67-0.7 0.67-0.7 1.35-1.4

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4Development and Commercialization Roadmap

2002 2003 2004 20051997 to

Phase 1 - Technology ProgramFPSO Concept Development

Phase 2 - Technology ProgramSystems Definition

Process Technology

Offshore Marinisation

Market Readiness

ABS ‘Approval in Principle’

Process Development

NicheLNG OffshoreSM

Process Patents

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OIL FPSO

Development Concept – NicheLNG OffshoreSM FPSO

Oil Development

NICHELNG FPSO

LPG CARRIER FOR SMALL PARCELS

LNG TRADE CARRIER

Associated Gas Feed Stock

LNG

Niche LNG Chain

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6Niche LNG FPSO - Topside Arrangement

Flare Tower

Loading Arm

LQ

Turret

FEED Pre-Treatment

LPG ExtractionLNG Liquefaction

Utilities

Niche LNG FPSO

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7NicheLNG FPSO - Elevation View

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8Niche LNG FPSO – Main Piping Routing Development

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9LNG Containment – Ship Options

IHI SPB Prismatic Type

Membrane Type

Moss Spherical TanksLNG FPSO

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0LNG Storage

Storage CapacityTypical LNG trade carrier capacity: 138,000 m3

LNG FPSO storage capacity: 170,000 m3 LNG (includes buffer capacity) +35,000 m3 for LPG Total Vessel Storage : 205,000 m3

Containment SystemsThe Independent Spherical Tank (Moss) Not SuitableNot SuitableThe Membrane Tanks (GTT)The IHI SPB Type B

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1Ship-to-Ship LNG Off-loading

SBM – SYMO (Soft Yoke Mooring & Off-loading)

Cou

rtes

y of

SB

M

Har

d Pi

ped

Flui

d Tr

ansf

erC

ryogenic Hose Fluid Transfer

LNG FPSO

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2Niche LNG FPSO Concept

LPG/LNG FPSOLength (LBP) 312.00 mBreadth 51.00 mDepth 28.00 mDraft 11.00 mBlock Coefficient 0.945LNG T.(4 SPBs) 170,000 m3LPG T.(1 SPB) 35,000 m3LNG Plant 1.5 mmta/yOffloading SS/TandemAccommodation 60 persons

LNG CarrierLength (LBP) 263.00 mBreadth 44.60 mDepth 28.60 mDraft 11.00 mLNG T.(4 SPBs) 130,000 m3

BB

C C

52m52m40m 20m

312 m

No. 1LNG &Ballast

52m 52m 44m

No. 2LNG &Ballast

No. 3LNG &Ballast

No. 4LNG &Ballast

No. 5LPG &Ballast

252 m (WFS = 3.7 m)

APFP

No.1 B.(P/S)

No. 1 C.(C)

No.2 B.(P/S)

No. 2 C.(C)

No.3 B.(P/S)

No. 3 C.(C)

No.4 B.(P/S)

No. 4 C.(C)

No.5 B.(P/S)

No. 5 C.(C)

30m

midship

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3LNG FPSO – Mid-ship Section

D2 D1

S4

S3

S2

S1

L3

L2

L1

H 1

I 1 I 2 I 3

B1 B2 B3 B5BG1

Plate Longitudinal SpacingD2 18 430x12+150x20 (T) 900

1500x15+200x20 3600D1 18 300x20 (FB) 600S5 17 430x12+130x18 (T) 920S4 18 430x12+130x18 (T) 920S3 19 520x12+170x20 (T) 920S2 20 580x12+180x20 (T) 920S1 21 720x13+200x20 (T) 930L4 17 430x12+130x18 (T) 920L3 15 430x12+130x18 (T) 920 L2 14 520x12+170x20 (T) 920L1 17 580x12+180x20 (T) 920H1 22 720x13+200x20 (T) 875I 1 21 580x12+200x20 (T) 900I 2 21 580x12+200x20 (T) 900I 3 22 580x12+200x20 (T) 900B1 22 600x12+180x20 (T) 900B2 22 600x12+180x20 (T) 900B3 23 600x12+180x20 (T) 900B4 23 600x12+180x20 (T) 900B5 22 600x12+180x20 (T) 900BG1 22 NA NA

F3

F2

F1

G0 G1 G2 G3 G4

Plate Longitudinal SpacingF1 15 250x12 (BP) 750F2 15 250x12 (BP) 750F3 15 250x12 (BP) 750F4 15 250x12 (BP) 750G0 17 400x150x13/18 (A) 750G1 15 150x13 (FB) 750G2 15 150x13 (FB) 750G3 15 150x13 (FB) 750 G4 17 150x13 (FB) 750W1 15 T.B. NAW2 15 250x13 (FB) 920W3 16 250x13 (FB) 920W4 18 250x13 (FB) 920W5 20 250x13 (FB) 930W6 21 250x15 (FB) 900W7 15 250x15 (FB) 900W8 15 250x15 (FB) 900W9 20 250x15 (FB) 900

SPB Tank (p)

22.53

25.5

5.45.45.41.84.53

2.4R

2.52

6.44

5.52

5.52

5

3

28

S5L4W1

W2

W3

W4

W5

W7W6 W8 W9

Camber = 0.5 m

B4

5.4 10.8 16.2 18.0 22.5 25.5

BB

C C

F4

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4FPSO Significant Motions

135 DegreeSig. Peak Vertical Vertical Vertical Longit. Longit. Longit. Trans. Trans. Trans.

Wave Ht. Period Displ. Vel. Acc. Displ. Vel. Acc. Displ. Vel. Acc.(ft) (s) (ft) (ft/s) (ft/s2) (ft) (ft/s) (ft/s2) (ft) (ft/s) (ft/s2)

19.0 14.3 6.97 2.89 1.25 4.48 1.83 0.78 4.35 1.78 0.7619.0 12.9 4.88 2.19 1.04 3.06 1.34 0.61 2.94 1.29 0.6019.0 11.5 3.15 1.59 0.86 1.82 0.87 0.45 1.81 0.90 0.4917.7 14.7 7.03 2.86 1.21 4.55 1.83 0.76 4.43 1.78 0.7417.7 12.7 4.28 1.94 0.93 2.66 1.18 0.55 2.56 1.14 0.5417.7 10.5 2.44 1.41 0.84 1.22 0.67 0.40 1.37 0.79 0.4815.7 14.6 6.12 2.50 1.07 3.95 1.59 0.67 3.85 1.55 0.6515.7 11.9 2.93 1.41 0.73 1.76 0.81 0.40 1.71 0.81 0.4115.7 9.8 1.94 1.19 0.75 0.91 0.55 0.35 1.09 0.68 0.43

135 DegreeSig. Peak Vertical Vertical Vertical Longit. Longit. Longit. Trans. Trans. Trans.

Wave Ht. Period Displ. Vel. Acc. Displ. Vel. Acc. Displ. Vel. Acc.(ft) (s) (ft) (ft/s) (ft/s2) (ft) (ft/s) (ft/s2) (ft) (ft/s) (ft/s2)

19.0 14.3 6.97 2.89 1.25 2.19 1.04 0.56 5.03 2.26 1.0419.0 12.9 4.88 2.19 1.04 2.13 1.15 0.66 4.03 1.88 0.9019.0 11.5 3.15 1.59 0.86 2.32 1.34 0.80 2.66 1.34 0.7017.7 14.7 7.03 2.86 1.21 2.16 0.98 0.51 4.57 2.04 0.9317.7 12.7 4.28 1.94 0.93 2.01 1.10 0.63 3.53 1.66 0.8017.7 10.5 2.44 1.41 0.84 2.04 1.23 0.77 2.00 1.10 0.6315.7 14.6 6.12 2.50 1.07 1.88 0.86 0.46 4.09 1.83 0.8315.7 11.9 2.93 1.41 0.73 1.89 1.07 0.63 2.43 1.18 0.6015.7 9.8 1.94 1.19 0.75 1.61 1.02 0.67 1.42 0.83 0.50

Significant Motion (double amplitude at FPSO COG)

Significant Motion (double amplitude at 30’ above deck)

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5

Feed Gas Rate : 225 MMscfdLNG Make : 1.54 million mtaShipping Distance : 1000 milesLNG Carrier Lease Rate : 85,000 USD/dayHurdle Rate (Project IRR) : 12%Corporation Tax : 38%Life of Facility : 15 yearsDepreciation : 15 yr Straight LineLNG is delivered as regassified to pipelineCost of Service : 2.78 USD/MMBTU

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6

2.25

2.50

2.75

3.00

3.25

3.50

3.75

4.00

4.25

0 1000 2000 3000 4000 5000 6000 7000 8000

Shipping Distance

CO

S, $

/MM

Btu

150

225

300

LNG Make,MMSCFD

1 Ship

1 Ship

2 Ships

3 Ships

2 Ships

2 Ships

3 Ships

4 Ships

1 Ship

miles

kms1610 3220 4830 6440 8050 9650 11260 128700

Shipping Distance Impact on Cost of Service

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7LNG FPSO – ‘Approval In Principle’ Plan

End Aug 04

End Sept 04

End Oct 04

End Nov 04

End Dec 04

ProgressiveDeliverables Review

Package 1 Package 2 Package 3

Screening Hazid

Hazid Studies

Detailed Hazard

Identification/ Mitigation

Major Hazards Register

(Deliverable)

Approval In Principle

Process & Topsides Definition

Hull, Marine Systems &

Process Plant

Integration

Safety & In-Service

Philosophies

1 day session

3 day session

Classification Society Review Program

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8ABS ‘Approval In Principle’ Received

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9