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17th INTERNATIONAL CONFERENCE & EXHIBITION

ON LIQUEFIED NATURAL GAS (LNG 17)

Introduction of South Hook Combined Heat &

Power (CHP) Opportunity David P. O’Brien

ExxonMobil Gas & Power Marketing

April 2013

17th INTERNATIONAL CONFERENCE & EXHIBITION ON

LIQUEFIED NATURAL GAS (LNG 17)

Presentation Outline

• What is CHP?

• South Hook History

• South Hook CHP Concept

• Conclusions

CHP = Combined Heat & Power

• Same as “cogeneration”

• Uses energy that would otherwise be wasted from thermal power production

• CHP contributes 11% of electric power in Europe, 8% in the United States

ExxonMobil LaBarge CHP

Wyoming, USA (100 MW)

• Energy efficiency

• Emissions reduction

• Operating cost savings

• Reliability improvement

CHP Offers Many Advantages

ExxonMobil Beaumont CHP

Texas, USA (~500 MW)

• Brownfield construction

• Location dependent on site heat demand

• High capex vs stand-alone gas power plant

• Requires stable regulatory framework

…..CHP also has challenges

ExxonMobil Antwerp CHP

Belgium (125 MW)

South Hook LNG Terminal History

• Located on Milford Haven in Wales

• South Hook Terminal fully commissioned in 2010

• Joint venture with Qatar Petroleum International, ExxonMobil, Total

Current Terminal Operation

• South Hook is a conventional LNG receiving and regassification terminal

• Warm water, heated by fuel gas, is the medium for heat transfer in the vaporisers

South Hook CHP Concept

• Residual heat from a gas-fired combined cycle plant could be used for LNG vaporisation

SHCHP - High Efficiency

• Heat from combustion used 3 times

– Gas turbine generates power

– Steam turbine generates power

35% 20%

15%

35% for Gas Turbine Power

20% for Steam Power

30% for LNG Vaporization

15% Waste Heat

– Hot water vaporizes LNG

30%

• CHP efficiency ~ 85%

LNG

Vaporizers

0%

100%

Coal Fired PowerPlant

Combined Cycle GasTurbine

South Hook CHP

Thermal Efficiency SHCHP – Low Emissions

0.0

1.0

Coal Fired PowerPlant

Combined Cycle GasTurbine

South Hook CHP

Tonnes CO2 per Megawatt-Hour

Source: ExxonMobil Analysis

Gas for Power Growing Rapidly

Source: ExxonMobil 2013 Outlook for Energy

0

100

200

300

400

500

600

2000 2010 2020 2030 2040

Gas Demand By Sector

BCFD

Electricity

Generation

Industrial

Res/Comm

Transportation

Conclusions

• Gas plays a critical role in power generation

• CHP can further extend the environmental

benefits of gas-fired power generation

• Strong partnerships are key to identifying

innovative opportunities like South Hook CHP