The Latest in Floating LNG Technologies

Presented by:

Bryan Trocquet & Scott Worthington

GasTech 2008
10-13 March 2008
GasTech 2008 Conference / 10-13 March 2008 2008 Mustang Presentation. All Rights Reserved.

Presentation Outline

X Market Overview X Mid-Scale LNG FPSO X Liquefaction Process Technologies X Proven Technologies

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

Market Overview

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

Business Drivers

Producing additional LNG & LPG supply Developing stranded gas reserves Maximizing the value of gas reserves Creating mobile assets
flexible for support of multiple locations

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

LNG Supply / Demand

Worldwide LNG demand growing LNG supply constrained
Large liquefaction projects long lead times

Major interest in monetizing stranded gas reserves

16 163 50 500 TCF 5 50 TCF 1 5 TCF 0.5 1 TCF 0.25 0.5 TCF 0.1 0.25 TCF 0.01 0.1 TCF <0.01 TCF

Targeted reserves for Mid-scale LNG projects

641 Fields 668 Fields 940 Fields 1,620 Fields

800+ fields: 0.5 - 2 TCF

5,085 Fields 6,243 Fields

Data source: Syntroleum, IHS Energy

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

Mid-Scale LNG FPSO Costs

Traditional, base load liquefaction costs at all time high Mid-scale LNG FPSO a lower cost solution Cost advantages LNG FPSO
Multiple liquefaction technologies available Modularization No harbor required Use of existing vessels is possible More fabrication options

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

Announced LNG FPSO Developments

FLEX LNG

FLEX

SBM

Announced Project Feasibility Study Project Developer

Petronas

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

Mid-Scale LNG FPSO

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

Mid-Scale LNG FPSO Project Scope

LNG Liquefaction Building Blocks

LNG Transfer System Arms Hoses Liquefaction/LPG APCI COP Hamworthy Linde LNG Smart Heavy Ends Removal C5 + Gas Treating CO2, H2S, Mercury Solid Bed Dehydration Hull (new or converted)
Ship or Barge Steel or concrete

Utilities

LNG / LPG Storage SPB, Moss, Membrane, LNG Smart

Mooring System Riser Sub-sea Gas Pipeline

PLEM

0.5 2 tcf Natural Gas Reserves

GasTech 2008 Conference / 10-13 March 2008

1 mtpa = 150 mmscfd

2008 Mustang Presentation. All Rights Reserved.

Liquefaction Process Technologies

Mustang LNG Smart

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

LNG Smart Liquefaction Solutions

Mustang has developed a suite of robust turbo-expander based processes that:

Are safe and environmentally responsible Enhance LNG process efficiency Reduce cost and schedule through modularization Provide simple, reliable, and flexible operation Respond to field production swings Use industry proven components at optimum sizes Minimize equipment count
2008 Mustang Presentation. All Rights Reserved.

GasTech 2008 Conference / 10-13 March 2008

Gas to LNG Block Flow

Source Gas

Gas Treating CO2 & H2S Removal, Dehydration, Mercury Removal

LNG Smart Liquefaction Processes*

with Turbo-Expanders
(including C5+ Removal)

LNG Storage

Optional Condensate Stabilization & Storage

* Patents Pending

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

LNG Smart Liquefaction Technologies*

NDX-1
Nitrogen Dual Expander

OCX-2
Open Cycle Expander

OCX-R
Open Cycle Expander plus Refrigerant

OCX- Angle
Open Cycle Expander with Angle LPG Extraction

EFFICIENCY

Closed loop nitrogen refrigeration with dual expanders Simple, compact design 91-93% thermal efficiency

Open loop source gas refrigeration 89-92% thermal efficiency

Closed loop refrigerant plus open loop source gas refrigeration 91-93% thermal efficiency

Similar to OCX-R; adds LPG recovery Btu control for LNG interchangeability 91-93% thermal efficiency

Liquefaction
Refrigerant: Nitrogen

LPG Recovery

Source Gas

Source Gas + Refrigerant

* Patents Pending 2008 Mustang Presentation. All Rights Reserved.

GasTech 2008 Conference / 10-13 March 2008

LNG Smart Liquefaction Process* NDX-1

(Dual Expander)
Boil-Off Gas from LNG Storage LNG Flash

Fuel Gas

Cold Box Plate Fin Exchanger

Source Gas

LNG to Storage

Nitrogen Loop Compression

Warm N2 Expander

* Patents Patent Pending Pending

Cold N2 Expander

91 to 93% Thermal Efficiency

GasTech 2008 Conference / 10-13 March 2008 2008 Mustang Presentation. All Rights Reserved.

LNG Smart Liquefaction Process* OCX-2

(Open Cycle Expander)

Boil-Off Gas from LNG Storage Flash Gas Compression Cold Box Plate Fin Exchanger

Source Gas
Recycle Gas Compression

LNG Flash

LNG to Storage

Fuel Gas

* Patent Pending

Turbo-Expander

89 to 92% Thermal Efficiency

GasTech 2008 Conference / 10-13 March 2008 2008 Mustang Presentation. All Rights Reserved.

LNG Smart Liquefaction Process* OCX-R

(Open Cycle Expander)

Closed-Loop Refrigeration

Boil-Off Gas from LNG Storage

Flash Gas Compression

Source Gas
Recycle Gas Compression

Cold Box Plate Fin Exchanger

LNG Flash

LNG to Storage

Fuel Gas

* Patent Pending

Turbo-Expander

91 to 93% Thermal Efficiency

GasTech 2008 Conference / 10-13 March 2008 2008 Mustang Presentation. All Rights Reserved.

LNG Smart Liquefaction Process* OCX-Angle

(Open Cycle Expander) Closed-Loop Refrigeration
(optional; recommended for most feeds)

Boil-Off Gas from LNG Storage

Flash Gas Compression

Cold Box: Plate Fin Exchangers Integrated LPG Recovery

Source Gas
Recycle Gas Compression

LNG Flash

LNG to Storage

LPG to Storage

Fuel Gas

Turbo-Expander

* Patent Pending

91 to 93% Thermal Efficiency Produces both LPG and LNG products

2008 Mustang Presentation. All Rights Reserved.

GasTech 2008 Conference / 10-13 March 2008

OCX-R Process Layout on FPSO

120 ft (36.5 m)

Mustang LNG Smart OCX-R Liquefaction Process, .75 mta, Layout on FPSO
GasTech 2008 Conference / 10-13 March 2008

75 ft (22.5 m)

Height = 55ft (16m) Approx. weight = 1800 tons

2008 Mustang Presentation. All Rights Reserved.

NDX-1 Process Layout on FPSO

100 ft (30.5 m)

Mustang LNG Smart NDX-1 Liquefaction Process, 0.6 mta, Layout on FPSO
GasTech 2008 Conference / 10-13 March 2008

75 ft (22.5 m)

Height = 55ft (16m) Approx. weight = 1600 tons

2008 Mustang Presentation. All Rights Reserved.

LNG Smart Liquefaction Process Comparisons

Liquefaction Processes*
NDX-1
Refrigerant Thermal Efficiency(1) Specific Power kW-h/kg product Equipment Count per Train Maximum Capacity per Train Main Compressor Driver (2) Nitrogen Gas 93% 0.41 18 (incl. fuel gas compression) 0.625 mtpa

OCX-2
Source Gas 92% 0.46

OCX-R
Source Gas & Closed-Loop Refrigerant 93% 0.40

OCX-Angle
Source Gas & Closed-Loop Refrigerant 93% 0.41

16

22

28

0.55 mtpa

0.75 mtpa LM6000 precooling

0.75 mtpa LM6000 precooling

LM6000

LM6000

Process comparison based on simulation of identical feed gas

Note: (1) Thermal efficiency calculated as the ratio of the higher heating value (HHV) of the products to the feed. (2) Precooling of the inlet air increases the gas turbine power output. GasTech 2008 Conference / 10-13 March 2008 * Patents Pending

2008 Mustang Presentation. All Rights Reserved.

Additional OCX / NDX Benefits

Process Design
Multiple train design (75 mmscfd, 0.5 mta) improves reliability & availability Less equipment than SMR, DMR & Cascade = less cost, easier operation Fits on LNG carrier (new / converted) or barges (steel or concrete)

Operations
Responds quickly to oil and gas field fluctuations Handles variable gas feed rates and compositions Turndown to zero, recycle flash gas keeps system cold No cryogenic compression required, lower cost, shorter delivery Proven gas plant components: compressors, expanders, brazed aluminum heat exchangers, gas turbine or electric drives Quick, warm startup. No long cool-down or refrigeration sequence Insulated cold box keeps systems at temperature for several days

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

Proven Technologies

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2008 Mustang Presentation. All Rights Reserved.

Proven Technologies

Proven Cryogenic, GP and FPSO experience worldwide

Ortloff 200+ Gas Processing Facilities Licensed since 1980 Mustang FPSO Topsides engineering and EPCM Salof Single Cycle Turbo Expander design & Module Fabrication

LNG Peak Shaving Facilities

Small scale LNG liquefaction (5-50 mmscfd) 23+ expander based operating facilities worldwide

Salof - Single Cycle Design in Operation

5.25 mmscfd in China

GasTech 2008 Conference / 10-13 March 2008

2008 Mustang Presentation. All Rights Reserved.

Kryopak EXP LNG Process

Single cycle turbo-expander refrigeration process

Refrigerant from process gas Minimal equipment at cryogenic temperatures Plant currently in operation (5.25 mmscfd)

Beihai XinAo Gas Company LNG Plant, Weizhou Island, PR China

GasTech 2008 Conference / 10-13 March 2008 2008 Mustang Presentation. All Rights Reserved.

Thank you! Questions?

Email: lngsmart@mustangeng.com
GasTech 2008 Conference / 10-13 March 2008 2008 Mustang Presentation. All Rights Reserved.