LNG in Cameroon

How the « gas risk » can become an opportunity

By Max NussbaumGDF SUEZ LNG

Project director

in charge of the infrastructures development of

Cameroon LNG project2011-10-13

This presentation is not intended to provide the basis for any evaluation of

GDF SUEZ or of any of its subsidiaries. Although GDF SUEZ uses reasonable

care to include in this presentation information which it believes is up-to-date

and accurate, GDF SUEZ makes no representation or warranty as to the

adequacy, accuracy, completeness or correctness of such information nor

does it warrant or represent that the presentation shall be complete in every

respect. GDF SUEZ shall have no liability resulting from the use of the

information provided in this presentation nor shall it have any liability for the

absence of any specific information herein. The information may be changed

by GDF SUEZ at any time without prior notice. Nothing herein may be

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belongs to GDF SUEZ.

Disclaimer

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Content

• Cameroon Gas status

• Development schemes screening

• Concept Design selection and optimisation processes

• Selected offshore pipeline and LNG plant design overview

• Conclusion

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Cameroon: Now is the time for gas

Cameroon has enjoyed stability for several decades, which has permitted : Highly diversified economy: agriculture 20% of GDP

industry 22% of GDP , oil production 7% of GDP Stable growth 3% p.a. over last 5 years Low level of public debt: 1.5 B EUR (9% of GDP)

Cameroon’s oil production started in 1977, and is now declining. Current production is well below 1986 peak

The country needs a strategy to supplement revenues

Can natural gas replace declining oil revenues?

1970

Stat

e to

tal r

even

ues Oil revenues

Gas revenues

2050Note: Cameroon key facts: 475,000 km2 ; 19 millions inhabitants ; GDP/capita = 1 238 $(2010)

Progressive, then long term stable revenues

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Trinidad and Tobago: reserve response to sanction of 1st LNG unit

LNG export agreed

Cameroon LNG should foster gas exploration

• Gas discoveries in Cameroon have been made by pure chance during oil exploration. In absence of market, gas has been seen as a “gas risk” by most exploration companies

• Very significant exploration potential remaining with numerous undrilled gas prospects

• Confirmation of viable export scheme will likely attract investments in gas exploration

• Significant increase in proven gas reserves could follow sanction of Cameroon LNG (see example of Trinidad and Tobago below)

• SNH (NOC) and GDF SUEZ have concluded a partnership to develop LNG exports which has the full state support

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LNG Project: Strong State ambition

June 2009: conclusion of pre-feasibility study confirming preference for an onshore plant (vs. an LNG FPSO) to be located in South Cameroon (Kribi region)

End 2009: opening of GDF SUEZ office in Cameroon

May 2010: formal attribution by the State of a site for the LNG plant and launch of PreFEED study with Foster Wheeler

Dec 2010: signing of Framework Agreement for Cameroon LNG project between State of Cameroon and GDF SUEZ, confirming the essential fiscal, financial and commercial principles for the project

April 2011: conclusion of PreFEED study with Foster Wheeler

June 2011: signing of commercial pre-agreements with gas producers in Cameroon

In 2006/2007, the country recognised the urgency to develop its gas industry

In January 2008, President Biya issued a presidential decree expanding the mandate of SNH* to include gas monetization as a priority

SNH developed Gas Master Plan: allocation of certain volumes for export and decision to proceed with single integrated gas export project

2008, SNH selected GDF SUEZ as strategic partner to develop an LNG export project

Under the lead of SNH and GDF SUEZ, the LNG project has gained momentum and is on the right track

* SNH: Société National des Hydrocarbures (National Hydrocarbon Company) 6

Development schemes

20/01/2009 confidential

Kribi

Limbe

LPG extraction and LNG productionLPG extraction

LPG extraction and LNG production

LPG extraction and LNG production

LPG extraction and LNG production

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Preferred Configuration

820/01/2009confidential

KribiLPG extraction and LNG production up to 3.5 Mtpa

gas transportation network

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Concept Design selection and optimisation processes

• Phase 1: Screening and technology selection

– Reference case definition

– Screening and selection studies to fix the concept design of the infrastructures (Design Case)

• Phase 2: Engineering development including design optimisation

– The Design Case is further developed to establish PFDs and main equipment list

– Value Engineering review at PFD level to simplify and reduce capital and operation costs . 41 ideas are identified, resulting in 20 items considered in the preFEED and 21 items to be studied at FEED phase

– CAPEX and OPEX estimate

Design Selection Philosophy • The main design options were studied and weighted using the

following ranking criteria :

Production Availability CAPEX/OPEX Economics (processing fee and upstream NPV) Operability- Maintainability Production and operation Flexibility Technology robustness and experience Environmental impact, based on CO2 equivalent Local content

• Any design option is assessed by difference to the reference case to evaluate the impact on the above criteria

• Main design drivers are :– robust operation – minimise CAPEX – create value

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Main Technology SelectionsOffshore Pipeline

• Pipeline routing / landfall options

• Liquids Management

• Hydrate control

• Corrosion control (internal)

LNG Plant / Marine Facilities

• Major Driver Selection

• LPG Extraction

• Cooling Media Selection

• LNG tank / LPG tanks

• Process heat method / source

• LNG/LPG Loading Berth, Need for breakwater

• Construction facilities (e.g. materials offloading berth)

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Technology SelectionsOther LNG Plant / Marine Facilities Decisions

• Power generation (type of drivers)

• AGRU method / solvent – planned conventional

• Mercury removal adsorbent – planned conventional

• Fire water (fresh water / sea water)

• Marine Offloading Facilities options

• LNG/LPG/Condensate ships selection

• Use of alternative LNG loading line type / methods – no intention to study

• Permanent community – premise provided in SOW, may be adjusted

• Plant production capacity debottlenecking / increase (brainstorming)

• Short or long term LNG capacity reduction (limitation of feed gas) (brainstorming)

• Differential cost of single vs. parallel refrigeration compressor strings (brainstorming) 12

Pipeline system overview

Cameroonian gas reserves

Pipeline system of 270 km

Aggregation of several offshore gas fields

4 tie-ins

Cameroon Volcanic line crossing 13

Pipeline profile for the selected route

CVL

14

Pipeline landfallshore approach

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LNG Plant

Liquefaction plant– 1 LNG train up to 3.5 Mtpa

– One onshore tank of 190 000 m3 (full containment)

– Two LPG tanks of 44 000 m3 (full containment)

– One Condensate tank 60 000 m3 (single containment with internal floating roof)

Marine facilities– A jetty of about 1.6 km in length

– One LNG carrier every 5 to 10 days

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Plant layout

17

Site preparation

18

Marine facilities

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Conclusions

• New liquefaction plants are needed in the Atlantic Basin

• The Cameroon LNG project has full State support

• SNH and GDF SUEZ have established a very solid partnership

• GDF SUEZ offer long term market access for the LNG production, LNG

expertise and track records in developing and financing large

infrastructure projects

• SNH, GDF SUEZ and upstream operators present in Cameroon are

complementary, commercial pre-agreements with gas producers

have been signed in June 2011

• The project has gained the required momentum for successful

development making the gas risk as an opportunity20