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KOGAS’s Technical Capability and Plan on Off-shore Plant Business

KOGAS’s Technical Capability and Plan on Off-shore Plant Business

2017. 11. 1

© Korea Gas Corporation. All rights Reserved

Tony S. H. KimOff-Shore Plant Development Team

Overseas Plant Business Group

1. LNG Market Trend & FSRU1. LNG Market Trend & FSRU


LNG Import Trend

Huge Increase in Asia & Middle East region - From 74 Mil Ton with 9 Country (1996) to 264 Mil Ton with 39 Country (2016)

Asia is the Biggest Importer(73%). China and India become 3rd & 4th Importer • Low Oil Price & Excess of LNG supply make drop in LNG Price.• Therefore, many Countries are considering to import LNG.


LNG Export Trend

LNG Exporter become diversified- From 8 Country (1996) to 18 Country (2016)

Qatar is still biggest exporter since 2006. Australia become 2nd Exporter

•Due to New LNG Supply(US, Australia) and reduced demand on Main importer(Japan, Korea), Expect constant Buyer’s market! With US shale gas Contracts(About 96 MTPA)


LNG Ship Trend

Huge Increases on LNG Vessels- From 127 vessels (2000) to 455 vessels (2016), Exceed Quadruple

Demand for FSRU/FSU is also growing on New rising Country.- 2015 : Egypt, Jordan. Pakistan- 2016 : Colombia, Jamaica, Malta

© Korea Gas Corporation. All rights Reserved Over 16,000m3 vessels are counted

Receiving Infrastructure and FSRU

New rising Market apply FSRU/FSU than on-shore terminalNow 23 FSRU/FSU are operating in 17 Countries /Total LNG Import possession by FSRU is 11%


<New LNG Receiving Terminal Type by year> <FSRU Import by Country>

Since 2008, FSRU/FSU possess 78% for New LNG Infrastructure.

<FSRU Building Trend>

On-Shore Terminal

FSRUs are based on LNG tankers and use essentially the same technology as onshore terminals

On-Shore VS Off-Shore Import Terminal


Off-Shore Terminal (FSRU)

Off-Shore Terminal (FSRU) On-Shore Terminal

Import LNG

LNG Tank

LNG LP Pump

Recondensor

Recondensor

HP PUMP

Sea Water Pump

On-Shore VS Off-Shore Import Terminal


LNG HP Pump

Vaporizer

Send Out NG

Sea water PumpLNG Tank

LNG LP PUMPVaporizer

The only difference is that the equipment is marinised to be suitable for shipyard construction and marine operation.

Speed to Market : FSRU Project typically take less than 24 months to execute, implemented in 6 months

- Land Based terminal normally takes 5 ~ 6 years (for Planning, siting, permitting and constructing)

- FSRU provide fast solution who want to change thermal to LNG Power Plant for Environmental needs.

Reduced Cost : FSRUs are less capital intensive than land based LNG Terminal.

With lower cost base, smaller markets can be developed for LNG imports.

Great Cost Certainty : Since FSRUs are built in shipyard on a fixed cost and delivery date,

importer has great clarity on cost and timing

Market Flexibility : FSRUs can easily be moved from one location to another,

if there has demand change. Also can be swapped to larger or smaller units.

Why FSRU boom?


Speed to Market : FSRU Project typically take less than 24 months to execute, implemented in 6 months

- Land Based terminal normally takes 5 ~ 6 years (for Planning, siting, permitting and constructing)

- FSRU provide fast solution who want to change thermal to LNG Power Plant for Environmental needs.

Reduced Cost : FSRUs are less capital intensive than land based LNG Terminal.

With lower cost base, smaller markets can be developed for LNG imports.

Great Cost Certainty : Since FSRUs are built in shipyard on a fixed cost and delivery date,

importer has great clarity on cost and timing

Market Flexibility : FSRUs can easily be moved from one location to another,

if there has demand change. Also can be swapped to larger or smaller units.

*FSRU Technology represents a flexible, proven, fast track and Cost effective means of allowing countries or Region to store and import LNG

FSRUStart-Up

2005Gulf Gateway(USA)

2007Petrobras(Brazil)

2009Neptune(Turkey)

FSRU Fleet9

• 7 FSRU in operation• 2 For LNG Carrier

7• 6 FSRU in operation

• Will Supply 1 FSRU to Ghana1

6• 5 FSRU in operation• 1 For LNG Carrier

Major FSRU Owner


Shipyard DSME Samsung Shipyard Samsung Shipyard, HHI

Market Share(base on Send out Capacity)

48% 22% 14%

• With LNG vessel operation experience, Shipping Companies push ahead FSRU.[BW(Singapore), MOL(Japan), GasLog(Monaco), etc. ]

•Base on on-shore Terminal experience, Energy Companies also enter into FSRU Project[Gazprom(Russia), Engie(France), etc. ]

Potential LNG Import Infrastructure

FSRU Project OverviewFSRU Project Overview


LNG Infrastructure project estimated 126, except under Constructing Projects.Over 50% of project are small and medium scale FSRUs for New rising countries.

2. KOGAS’s Technical Capability & Plan

2. KOGAS’s Technical Capability & Plan


KOGAS Overview

Established in 1983State-run companySecond largest Importer in the world (31.8 mil ton in 2016)World-largest LNG regasification terminals(4 terminal with 72 tanks)About 5,000 km-long nationwide pipeline networkCredit Ratings Aa2 (Moody’s), A+ (S&P), AA- (Fitch)

55% GovernmentOwnership(direct / indirect)

Central Government26.15%

KEPCO 20.47%Local Government 7.93%

Others33.98%

Foreign11.47%

Corporate Philosophy : “Better Energy, Better World”


Our Experiences and Strengths

ConsultingPMC

Engineering & Design

Construction Management

Our Service experiences Strengths

Accumulated Expertise from 30+ year experience in LNG Terminals

State-of-the-art LNG Storage Tank• 270,000m3 capacity saves your budget & plottage• Membrane/9% Nickel, above/on/in-ground tanks are in operation

In-house R&D, Technical Manpower• Leading technology throughout LNG value chain• Experienced researchers, engineers, and technicians


Construction Management

Onshore & Offshore Terminal O&M

LNG Tank Inspectionand Overhaul

In-house R&D, Technical Manpower• Leading technology throughout LNG value chain• Experienced researchers, engineers, and technicians

Project Development• Large & Small scale LNG terminal• FSRU/FSU projects• Value chain integrated projects• Strong Partnership with competitive EPC players

LNG Fleets Operation• Chartered 28 LNG Carriers for dedicated Long term projects

with Competent Korean Shipping companies

LNG Fleet Chartering

CommissioningTraining

Prelude FLNG - Northwest in Australia

- Equity Participation : 10%

- First Production in 2018 Cyprus #2,3,9 Gas Field (Cyprus)

Krueng Mane Gas Field (Indonesia)

Other Marine Project

Coral FLNG (Mozambique)

KOGAS Off-Shore Project Experience

Prelude FLNG & Marine Project


The World First Floating LNG Facility

East Timor Gas Field (Timor)

Myanmar A-1/A-3 Gas Field (Myanmar)

LNG Value Chain Portfolio

LNG/CNG Lorry

Gas pipelineFSRU/FSU + Regasification

KOGAS Do : Exploration - Production - Liquefaction - Shipping - Regasification - Distribution of Natural Gas


KSMR:Liquefactionprocess

KC-1: Membrane type cargo

KOGAS’Technologies

Accumulated Expertise from 30-yr History

Engineering/Design, O&M Technology

Exploration &Production Liquefaction Shipping

LNG Receiving RegasificationBunkering

Gas pipelineFSRU/FSU + Regasification

• Base on Accumulated on-shore Terminal experience, KOGAS will enter into Off-shore Plant Projects

Strategic affiliation with Shipping company

LNG Storage Tank

Ship facilities Ship management

Ship FacilitiesShip ManagementBerthing, Mooring

LNG Cargo TankRegasfication UnitJetty Top Side Facility

KOGASOperation & Maintenance

Shipping CompanyShip O&M, Management

KOGAS’s Activities in FSRU Project

LNGC

FSRU

Jetty

RegasficationUnit

LNG Storage Tank

Jetty Top SideFacility


Berthing,

Mooring

FSRU Project entry Strategy

Based on O & M experiences for World-largest LNG regasification terminals and Utilizing Brand Power, High credit rate , KOGAS will advance overseas Off-shore plant project.

Build sustainable future Growth model

Phase Main Goal Progress Plan

1st Phase

(~’18)

• KOGAS-Shipping Company Collaboration Build-up

• (Business & Technical information) Network Build-up

- Business Cooperation with International financial company

- Collaboration Build-up with Shipyard, Class,

Engineering Company

• Push forward Technical Business

• Work on Exist & New investment business


1st Phase

(~’18)Create Business Base

• KOGAS-Shipping Company Collaboration Build-up

• (Business & Technical information) Network Build-up

- Business Cooperation with International financial company

- Collaboration Build-up with Shipyard, Class,

Engineering Company

• Push forward Technical Business

• Work on Exist & New investment business

2nd Phase

(~’20)

Participate in

Joint Operation

• Find New investment business & Minor equality investment

• Participate in joint operation with Exist FSRU Owner

3rd Phase

(’21~)Leading FSRU Business • Leading role in FSRU Business(Major Shareholder)

Thank you,

FSRU is ready to go with you.


ContactOverseas Plant Project Group, LNG Terminal DivisionKorea Gas Corporation120, Cheomdan-ro, Dong-gu, DaeguTel: +82-53-670-0114, +82-53-670-6572 (direct)E-mail: [email protected]://www.kogas.or.kr

Headquarter Office(Daegu, Korea)

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