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The Global LNG Industry in Transition:

Technology Developments and Infrastructure


Challenges for Mexico

Presented by:
Dr. Mauricio Dvila, Managing Director
EnerChemTek, Inc., Toronto
http://www.enerchemtek.com

EnerChemTek, Inc.

Agenda
The current and historical value chain for LNG:

Liquefaction transportation storage - regasification

The future value chain for LNG:

Liquefaction transportation storage distribution

The base of the future value chain has yet to be developed

New infrastructures for distribution, storage and, when desirable,


regasification of LNG will be needed on a global basis
Case studies of countries that are driving infrastructure development
Countries that will follow: Mexico?

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Upstream Liquefied Natural Gas (LNG) Value Chain


Exploration and production
This step consists of activities related
to the discovery and extraction of
natural gas. Onshore and offshore
platforms collect gas from drilling wells,
and then transport it to liquefaction
facilities.

Liquefaction
A liquefaction facility cools gas
to -162C, at atmospheric
pressure. In liquid state the
condensed gas is reduced to
1/600th of its volume, allowing
for economical transportation.

Shipping
The LNG is loaded onto specially built ships
designed to hold super-cooled gas. LNG can
be transported to any country in the world with
a regasification terminal.

Receiving, Storage
and Regasification

Source: BG Group

EnerChemTek, Inc.

In the receiving terminal the


LNG can be stored as a liquid,
where it can be distributed as a
cryogenic gas, or it can be
warmed, converting it back to
gas for distribution.

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Downstream Liquefied Natural Gas Value Chain

Source: EnerChemTek

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The Future Role of LNG


Inter-fuel competition favors gas
A greater role for gas in world energy
Widespread use of natural gas to replace other fossil fuels is considered by
many key industry stakeholders to be the largest single step the world
could take in the short term to reduce global carbon dioxide emissions,
accelerating the transition to a clean energy future.
LNG demand growing at even higher rates than natural gas
Prices for gas are well below those of other liquid fossil fuels
Prices for gas are more stable than for crude-derived fuels
The spectrum of LNG suppliers across the globe underwrites improved energy
security

There are strong cost, environmental & strategic reasons for


organizations to switch to Natural Gas/LNG

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Global Natural Gas Production and Trade, 2012

*) Note: All the figures in this column, including LNG, are given in billion cubic meters
of natural gas in gaseous state (LNG takes only 1/609th of natural gas volume when in
gaseous state).
Source: EnerChemTek, with data from BP
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The Global LNG Industry is in Transition


Global LNG capacity has seen accelerated growth since the late 1990s
Global Supply at a point of inflexion

Broad Impact of Shale


Gas
Export Stimulation
Petrochemical
Renaissance
Local LNG and NGLs

Source: EnerChemTek
EnerChemTek, Inc.

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Liquefaction Capacity by Country, 2013


Total Liquefaction Capacity = 290.8 Million Tons/yr

Source: EnerChemTek, with data from IGU

In 2013 there were 17 exporting countries with 89 liquefaction trains in operation


worldwide
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LNG Imports by country, 2013


Total Global Imports= 239 Million Tons/yr

Source: EnerChemTek, with data from IGU

In 2013 there were 29 importing countries with 104 regasification terminals including 10
countries with floating regasification facilities (FSRUs)
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About EnerChemTek

EnerChemTek is a specialized Canada-based company


providing technical and management advisory services to
the global energy and petrochemical markets. Since 2002 it
has focused particularly on the natural gas & LNG sector as
well as the polyolefins industry, providing web-based
services, databases and industry simulation models to
serve the global industry.

63 Twyford Road Toronto, Ontario M9A 1W5 Canada +1 416 232 0320

www.enerchemtek.com

EnerChemTek, Inc.

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