The Linde Group

“Small-Medium Scale LNG

Technology, Economics,
Transportation, and Receiving
Terminal”

Rick Lai
Head of Clean Energy (LNG & EOR) Business, Asia
Content:

Linde Group Introduction

LE Small & Medium Scale LNG Plant References
Economics of Small & Medium Scale LNG Plant
LNG Transportation and Storage
Key Messages

Sep 2012 Lai 2

The Linde Group worldwide
Global presence in more than 100 countries

The Linde Group

Group financials 2013 in short Gases Division Engineering Division

— Market cap of approximately EUR 33 bn

— Group sales 2013 EUR 16.955 bn
— Operating profit EUR 3.970 bn
— Total number of employees ~62,000
—Sep 2012
Rating:
Lai Moody : A3 S&P: A+ 3
Linde Engineering Markets & Global Rank

Air Separation Plants Hydrogen and Synthesis Gas Plants

Top 1 Top 2
Top 1 Products:
Products: — H2/CO/Syngas
— Oxygen — Ammonia
— Nitrogen — Gas removal
— Rare gases — Gas purification

Olefin Plants Natural Gas Plants

Top 2 Top 3
Products: Products:
— Ethylene — LNG
— Propylene — NGL Top 1

— Butadiene — LPG Small & mid LNG

— Aromatics — Helium
— Polymers

Sep 2012 Lai 4

Linde Company Profile
and Small to World Scale LNG Experience

Latest LNG WINS

1) Canada, WoodFibre 2.1 MTPA
2) Russia, Gazprom 0.6 MTPA
3) China: PetroChina, 0.4 MTPA x 2
4) Malaysia: Petronas: 0.8 MTPA

Judul Presetasi 26 Januari 2015

Sep 2012 Lai 5
Engineering Division
Plants in South-East Asia

Myanmar Hanoi
Laos Adsorption plants
Hainan
Yangon
Thailand
Air separation units
Hydrogen and synthesis gas plants
Sepon
Gas processing plants
Bangkok Manila
Natural gas plants
Petrochemical plants
Cambodia
Viet nam
Philippines

Sabah
Brunei

Malaysia
Sarawak
Singapor

Borneo
Sumatra
Sulawesi

Papua
Indonesia Papua-
Jakarta Neuguinea

Java

Timor

Sep 2012 Lai 6

Content:

Linde Group Introduction

Small Scale LNG Technology
LE Small & Medium Scale LNG Plant References
Economics of Small & Medium Scale LNG Plant
LNG Transportation and Storage
Key Messages

Sep 2012 Lai 7

Linde Engineering: Manufacturer of Cryogenic Equipment

— Supply of spool wound heat

exchangers for NWS T4 & T5,
Snøhvit, Sakhalin, Pluto LNG and
supply of plate fin heat exchanger
cold boxes for Idku (Egyptian LNG),
Darwin LNG and Arzew replacements
— Replacement of APCI spool wound
heat exchangers in Brunei

Sep 2012 Lai 8

 Small vs Traditional LNG Liquefaction System

•Design brief:
Capital Cost ($/LNG gallon/day) •Optimize for energy efficiency
1000
10

•Overcome scaling effects

Conventional •Adaptable to various gas sources
8

800 
Negative •Unmanned plant operation
Capital Cost Ratio

Scaling
Effect?
6

600
4

400 
GTI
Technology
2

200 ?

0

0
1000 10,000 100,000 1,000,000 10,000,000
2 16 160 1600 16,000

LNG Gallons Per Day

MTPD
Sep 2012 Lai 9
The GTI MRC and LE MRC Technology Provides an
Alternative to Nitrogen Cycles at Smaller Scales

Small-scale Medium-scale Large-scale

GTI MRC Conventional MRC including LE
Cascade MRC
Nitrogen cycle (Brayton)
Open Cycle Nitrogen
Pressure let-down

Type Positives Negatives

GTI MRC High efficiency Mixture management
Low cost (1 compressor, no expanders)
Conventional MRC High efficiency Size limits
Cascade MRC Highest MRC efficiency High capital cost
Nitrogen (Brayton) Simple and robust Relatively low efficiency
Open Cycle Nitrogen Extremely simple Cost depends on N2 cost
Pressure Let-down Highest efficiency Requires special
(Turboexpander) circumstance

Sep 2012 Lai 10

Small Scale Liquefaction Technologies Comparison

Sep 2012 Lai 11

Content:

Linde Group Introduction

LE Small & Medium Scale LNG Plant References
Economics of Small & Medium Scale LNG Plant
LNG Transportation and Storage
Key Messages

Sep 2012 Lai 12

 LE Small Scale LNG Plant:
1) 50 TPD-Tasmania 2) 110 TPD-Norway
3) 150 TPD-Melbourne 4) 175 TPD-Perth, Australia

1) 2)

LNG Plant

3) 4)
Sep 2012 Lai 13
LNG Project References: 900 TPD
Stavanger LNG Plant, Norway

Customer: Skangass AS
Capacity:
LNG 300,000 t/a
Scope of work:
General contractor (TKLS)
Contract value:
xxx MM €
Start-up:
2009
Process:
Advanced Single
Mixed Refrigerant
Sep 2012 Lai 14
14
LNG Project References : 1,250 TPD
ShanShan LNG Plant, PRC

Customer:
Xinjiang Guanghui LNG
Development Co., Ltd.
Capacity:
432,000 TPA LNG
Scope of Work:
Basic Eng., Key Equipment
Suppy, Detailed Eng.,
Construction, Start-up
Supervision
Start-Up:
2004
Process:
LIMUM® - CWHE Process
(gas turbine drive)
Sep 2012 Lai 15
15
LNG Project References : 1,150 TPD
Jimunai LNG Plant, PRC

Customer:
Xinjiang Jimunai Guanghui
LNG Development Co., Ltd.
Capacity:
400,000 TPA LNG
Scope of Work:
Basic Eng., Key Equipment
Suppy, Detailed Eng.,
Construction, Start-up
Supervision
Start-Up:
2012
Process:
LIMUM® - CWHE Process
with integrated NRU

Sep 2012 Lai 16

16
LNG Project References: 700 TPD
Beiniuchuan LNG Plant, PRC

Customer:
Inner Mongolia Coal
Chemical Co., Ltd.
Capacity:
280,000 TPA LNG
Scope of Work:
Basic Eng., Key Equipment
Suppy, Detailed Eng.,
Construction, Start-up
Supervision
Start-Up:
2013
Process:
LIMUM® - CWHE Process
(steam turbine drive)

Sep 2012 Lai 17

17
Content:

Linde Group Introduction

LE Small & Medium Scale LNG Plant References
Economics of Small & Medium Scale LNG Plant
Project Execution Consideration
LNG Plant Capacity Relative to NG Reserve (Stranded)
LNG Transportation and Storage
Key Messages

Sep 2012 Lai 18

 Plot Space and Infrastructure Consideration

•2 x 0.3 MTPA incl. buildings, flare, tank, utilities app. 22.000 m²,
while World Scale LNG plants require in excess of 20 times more

pre-
~ 240 m treatment,
LNG, LPG,
fractionation,
condensate
~ 90 m stabilization
storage
effluent MEG
treatment regeneration
liquefaction harmonic
filters
temp. MEG power
water Hot oil storage generation

Slug ~ 1.000 m
catcher
~ 500 m

Sep 2012 Lai 19

Location, Dimensions Consideration

Sep 2012 Lai 20

 Linde Engineering

Global Gas Reserves > 150 Years

Dominance of Smaller and more Unconventional Reservoirs

The largest remaining undeveloped gas field are

challenged by
Number/Size of Fields 1) • Geopolitics (e.g., Iran, Russia, Venezuela,
Nigeria, etc.)
16 50-500 Tcf • Location (e.g. McKenzie Delta, North Slope,
deep water, etc.
163 5-50 Tcf • Composition (e.g. Natuna – sour gas)

641 1-5 Tcf

Undeveloped mid-tier fields are challenged by
diseconomies of scale relative to transportation
668 0.5-1 Tcf
distance to market.

940 0.25-0.5 Tcf

1.620 0.1-0.25 Tcf Small fields provide unconventional production

challenges (e.g. tight sands, shale, coal-bed
5.085 0.01-0.1 Tcf methane). Several U.S. independents have built
their business on expertise in this area.
6.243 <0.01 Tcf

1) app. 80% on-shore

Linde AG Linde Engineering Division 21 Name / Department / Date / Filename.ppt

LNG Production Base on Proven P1 and P2 Reserve

Proven Reserves P1 Reserve 15 Years Gas Flow LNG Capacity LNG Capacity
In mmscfd In mmscfd mmscfd In TPD Per Annum

0.5 to 0.8 Tcf 720,000 (P1) 48,000 (P1) 137 (P1) ~3000 (P1) 1.05 MTPA (P1)
(800 Bcf) 400,000 (P2) 26,700 (P2) 76 (P2) ~1640 (P2) 0.57 MTPA (P2)

0.3 to 0.49 Tcf 450,000 (P1) 30,000 (P1) 86 (P1) ~1850 (P1) 0.65 MTPA (P1)
(500 Bcf) 250,000 (P2) 16,700 (P2) 48 (P2) ~1025 (P2) 0.38 MTPA (P2)

0.1 to 0.29 Tcf 270,000(P1) 18,000 (P1) 50 (P1) ~1106 (P1) 0.38 MTPA (P1)
(300 Bcf) 150,000 (P2) 10,000 (P2) 29 (P2) ~614 (P2) 0.22 MTPA (P2)

180,000 (P1) 12,000 (P1) 34 (P1) ~740 (P1) 0.26 MTPA (P1)
200 Bcf 100,000 (P2) 6,670 (P2) 19 (P2) ~410 (P2) 0.14 MTPA (P2)

50bcf 100Bcf 45,000 (P1) 3,000 (P1) 9 (P1) ~185 (P1) 65k TPA (P1)
(50 Bcf) 25,000 (P2) 1,670 (P2) 5 (P2) ~102 (P2) 35k TPA (P2)

Sep 2012 Lai 22

LNG Process Plant: Typical Cost Relative to Capacity of The
Plant

1.400 Key cost driver

• Feed gas
S p e c ific C o s t (€ / T P A )

1.200
~1100 TPD or composition and
~55mmscfd or
1.000
0.4 MTPA
pressure
800 • Site conditions,
500-600 TPD Plant or
600
plot space,
25-30 mmscfd, or
0.22MTPA location, existing
400 infrastructure
200 • prefabrication,
labor market
0
0 200 400 600 800 1.000
• standards
Sep 2012 Lai Capacity LNG, kTPA 23
 Typical Mid Scale LNG Plant CAPEX Breakdown

100 ~5%
90
80 25-35%
Supervision &
70 Comissioning
60 Civil & Construction
50
Equipment & Material
40 50 to 55%
30 Engineering
20
10 10 to 15% Total CAPEX Distribution
0
% of CAPEX

Sep 2012 Lai 24

 Linde Engineering

Content:

Linde Group Introduction

LE Small & Medium Scale LNG Plant References
Economics of Small & Medium Scale LNG Plant
Macro Environment and Linde Clean Energy
LNG Transportation and Storage
Key Messages

Linde AG Linde Engineering Division 25 Name / Department / Date / Filename.ppt

 Mode of Transportation for Small Scale LNG

Sep 2012 Lai 26

Small Scale LNG Storage

Sep 2012 Lai 27

LNG Truck via Shipping to Destination

Sep 2012 Lai 28

Content:

Linde Introduction: Linde Engineering

Linde Engineering in Small & Medium Scale LNG Plant
Economics of Small & Medium Scale LNG Plant
LNG Transportation and Storage
Key Messages

Sep 2012 Lai 29

Example of Small Scale LNG development in Norway and
Sweden

1
2

1) Linde Engineering (LE) built 900 TPD

3
(45mmscfd) for customer Skangass LNG plant in
Norway
2) Small LNG Tankers with capacity ranges from
1,000 to 12,000m3 are available in the market
3) Linde Gas owns and operates a 20,000m3 LNG
Receiving Terminal in Stockholm, Sweden. Cryo
AB (LE subsidiary) engineered and built
terminal
Nynäshamn 4) LNG Receiving Terminal is to supply Stockholm
NG grid , supply Industries, marine and
Transportation sector
Sep 2012 Lai 30
Linde Value Proposition
NG Liquefaction, Shipping, Regasification and Supply

Integrated Small-Medium Scale LNG Supply Chain

Linde Value Proposition

Production Processing & Storage Sea Storage & Customer

liquefaction & Transportation Regasification
loading (outsourced) Plant

Upstream Liquefaction Transportation Regasification Final Customer

Plant Plant

Sep 2012 Lai 31

Key Messages

1. The success of small to mid scale LNG implementation is based on a company who is capable
of
a) Ability to integrate from Upstream, midstream to downstream seamlessly
b) Ability to obtain gas allocation with adequate proven reserve in the country
c) Creditable partnership, including local partner, along LNG supply chain
d) Commitment from end users/off takers
e) Last but not least, a bankable project for financing

Sep 2012 Lai 32

Thank you for your attention!