An Economic Solution to Small – Mid Scale Liquefaction

Paul Emmitt
New Technology Manager
Brian Songhurst
Director of LNG 4th December 2008
Energy & Power

¾ Formed 2000, Independent (Privately Owned)

¾ 120 Personnel Based in London, Wales & Hong Kong

¾ Consultants to the Oil & Gas Industry (Oil Companies & Contractors)

¾ Due Diligence/Design Audits/Owner’s Engineer (Client Support Teams)

¾ Feasibility Studies/Conceptual Design/FEED/Detailed Engineering

¾ Extensive Expertise in LNG Projects Worldwide (Onshore and Offshore)

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Contents

¾ INCREASING NEED FOR MID RANGE LNG PLANTS:

ƒ Why – to monetise stranded gas (flared gas, CBM)

ƒ Why stranded – focus has been on expensive large scale plants

¾ PROTEUS LNG TECHNOLOGY:

ƒ An innovative solution for small to mid range plants

ƒ Description

ƒ Comparison with other processes

ƒ Costs

ƒ Benefits

¾ BUSINESS OPPORTUNITIES

ƒ Energy companies

ƒ Suppliers & Contractors

¾ NEXT STEPS & CONCLUSIONS

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History of PROTEUS LNG

¾ Invented by GasConsult

¾ Energy & Power undertook partnership with inventors

¾ Process IP protected by Patent

¾ Process systems developed using Energy & Power’ multidiscipline expertise

¾ Due Diligence of PROTEUS LNG completed by DNV in 2007

¾ Rigorous modelling of process undertaken

¾ Pilot plant Design, FEED, HAZOP, QRA completed

¾ Full economic model developed

¾ Market review highlighted need for a more flexible process

¾ Modular PROTEUS LNG concept developed e.g. remote locations / FLNG

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Emerging Mid Scale LNG Market

¾ Rapid growth has led to “Stranded Gas” and flare gas opportunities

¾ Small scale LNG market is expanding

¾ Production 30 – 3,000 t/day (10,000 – 1,000,000 t/year)

¾ PROTEUS LNG offers low (lifecycle) cost solution

¾ Opportunities for new energy companies and suppliers

Liquefaction Plant Capacity Growth LNG Worldwide Production

9 200
8 180
7 160
6 140
MTPA

5 120

MTPA
4 100

3 80

2 60

1 40
20
0
0
1960 1970 1980 1990 2000 2010 2020
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

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PROTEUS LNG Process

¾ SIMPLE;

ƒ Lower CAPEX due to low equipment count

ƒ Lower hydrocarbon inventory

ƒ Easier operation and maintenance

ƒ Improved Safety

¾ HIGH THERMODYNAMIC EFFICIENCY

ƒ Approaching complex mixed refrigerant

processes

ƒ Lower OPEX

¾ OVERALL LOWER PRODUCTION COST

ƒ Increased profit

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Overall Production Scheme

¾ STILL NEED CONVENTIONAL GAS PRE-TREATMENT (PURIFICATION);

¾ AMINE WASH, MOLECULAR SIEVE DRYING – ALL INDUSTRY STANDARD;

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Specific Power (kW/TPD LNG)

SPECIFIC POWER INCREASED LNG

LIQUEFACTION PROCESS
kW/TON PER DAY PRODUCTION PER UNIT OF FEED GAS

Single Expander Cycle 25-35 Base line 0%

Double Expander Cycles 20-25 +7%

Proteus LNG 13-20 + 10%

Cascade Cycle 13-14 +11%

Mixed Refrigerant Cycle 12-13 +12%

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Production Costs (Liquefaction Only)

¾ CAPEX
$US 220 – 250 per ton/year

$US 220 – 250 million for 1 million t/year (3000tpd) plant

$0.3 MMBTU based upon 1 million t/year plant

FOB Basis

Modular Construction

Liquefaction Unit Only, excludes gas treatment, storage, export and utility systems

¾ OPEX
$0.4 MMBTU based upon 1 million t/year

Liquefaction only

¾ PRODUCTION COST
$0.8 MMBTU based upon 1 million t/year

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Opportunity to Monetise Gas

¾ Flared Associated Gas From Oil Production;

¾ Small Offshore Gas Fields;

¾ Coal Bed Methane or Coal Seam Gas;

Flare Gas
Associated Gas
¾ Waste Site Methane and Biomass;
PROTEUS LNG
Processing
¾ End of Pipeline (Pipeline ‘Extension’);
Export

¾ Sustainability (Diesel Displacement) Associated Gas

OilOIL

¾ Transport fuel solutions

¾ Off Grid supply opportunities

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Next Steps

¾ Build and Operate Demonstration Plant

ƒ 10 tpd (12000 Nm3/d feed gas), ½ Road Tanker/d

ƒ Budget $US 5 million

ƒ Currently Seeking Participants;

¾ Seeking Potential Investors

ƒ For IP

ƒ For Execution

¾ First Commercial Plant Scheduled for 2012

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 Conclusions

¾ PROTEUS LNG OFFERS

ƒ A simple liquefaction process leading to:

ƒ Lower costs – Capital & Operating

ƒ High Efficiency – more production per unit of feed gas

ƒ Shorter Schedule – earlier production, improved cash flow

ƒ Improved Safety – if used with no external refrigerants

ƒ Uses Proven Equipment

¾ CREATES OPORTUNITIES

ƒ Enabling technology for monetising small gas reserves or flared gas

ƒ New entrants into LNG production and supply business

¾ PROPOSALS

ƒ We offer conceptual designs and cost studies for development of your gas reserves

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Contacts

paul.emmitt@energyandpower.co.uk

Energy and Power

Technium
Central Avenue
Baglan Energy Park
Port Talbot SA12 7AX
Telephone: +44 (0) 1639 816217
Mobile: +44 (0) 7917 798625

Web Address - http://www.energyandpower.co.uk

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