main pass energy hub™ approved deepwater natural … · approved deepwater natural gas port...

Main Pass Energy Hub™© 2006 Freeport-McMoRan Energy LLC 1

Main Pass Energy Hub™Approved Deepwater Natural Gas Port

Marine Technology SocietyHouston, TXMay 24, 2007


Location


McMoRan Exploration

Freeport-McMoRan’s natural resources companies have a long history of global operations dating back to early 1900s.

Headquarters located in New Orleans, Louisiana.

Record of success in finding and developing complex, world-class projects.Freeport has owned and operated major offshore facilities since 1958Main Pass facilities – previously permitted as a sulphur mine and oil and gas production and processing facilityReceived MARAD approval for MPEH™ on January 3, 2007

McMoRan Exploration Co. (MMR)

McMoRan Oil & Gas LLC Freeport-McMoRan Energy LLC

MPEH™


US LNG Demand-Supply

0

5

10

15

20

25

30

35

1960 1970 1980 1990 2000 2010 2025

TCF

Per Y

ear

Net Imports

Consumption

Supply

Source: Energy Information Agency AEO 2005

History Projections


U.S. Production vs. ConsumptionActual demand is cyclical and exceeds supply during certain periods of time and in certain regions of the U.S.

Historical US Supply Demand Profile

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

Jan-

90

Jan-

91

Jan-

92

Jan-

93

Jan-

94

Jan-

95

Jan-

96

Jan-

97

Jan-

98

Jan-

99

Jan-

00

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Bcf

/day

Dry Gas Production Pipeline Imports

LNG MPORTS Total Demand


LNG – Production to Market Flow Schematic & Chain Valuation

LNG to U.S.

Well

Natural Gas

Condensate

Liquefaction (Convert to LNG)

1,060 to 1,150 Btu/scf

Natural Gas1,075 Btu/scf

U.S.Pipeline Grid1,075 Btu/scf

LNG Regas at MPEH™

1,060 to 1,150 Btu/scf

Ethane, Propane & Butane Gases Removed to Reduce Btu

Content

1,060 to 1,150Btu/scf

1,060 to 1,150Btu/scf

E&PE&P

$.50$.50

Typical LNG Chain CostTypical LNG Chain Cost$/$/MMbtuMMbtu

LiquefactionLiquefaction

$2.00$2.00

ShippingShipping

$1.00$1.00

TerTer. . RegasRegas

$0.50$0.50

p/l to Mkt

HH – NY $1.50HH – FL $0.50

TotalTotal

$4.00$4.00

FLOW


Conventional vs. Integrated Storage

Conventional Regas Facility

Distribution to Consumers

1.0 bcf/d

Gas Conditioning Gas Storage

3.1 bcf/d PeakRegas1 bcf/d

Gas Cavern Storage

Main Pass Energy Hub™

Gas Conditioning


Project Advantages

Key processes and systems are combined into one facility.

LNG surface storage

Conventional vaporization

On-site gas conditioning

Integrated, high capacity salt cavern gas storage

Premium pipeline header to tie into premium U.S. gas markets


Terminal Capacity• Annual LNG Throughput Capacity 350 Bcf• LNG Surface Storage Capacity

• Liquid 145,000 cm• Vapor Equivalent 3.1 Bcf

• Salt Cavern Storage Capacity 28 Bcf

Terminal Deliverability• LNG Vaporizer (max) 1.6 Bcf/day• Cavern Storage (max) 1.5 Bcf/day• Peak Deliverability 3.1 Bcf/day

•12 Hr offload capability

MPEH™ Technical Specifications


Main PassEnergy HubTM

Columbia Gulf

Tennessee

Texas Eastern

Gulf SouthTransco Florida Gas

Gulfstream

Southern Natural

LouisianaLouisiana

MississippiMississippi AlabamaAlabama3.1 Bcfd Takeaway

8 Pipeline Connects with Broad / Liquid

Market Access

2.0 Bcfd2.0 Bcfd

0.5 Bcfd0.5 Bcfd

0.5 Bcfd0.5 Bcfd

Henry HubHenry Hub

Optimal location east of constraints

MPEH™ Pipeline Deliveries


Major Pipeline Networks Served


Project Timing

License application deemed complete in mid 2004.

March 2006 received final EIS from MARAD/USCGMay 5, 2006 LA Governor vetoed use of “open loop” vaporizationMPEH DWP “closed loop” vaporization “Amended” Application submitted 5/31/06USCG/MARAD published “closed loop” EA 9/19/06MARAD favorable Record Of Decision issued 1/3/07

Continuing to progress commercialization of project.

Existing structures allow a 40 month design and construction schedule.

In advanced discussions with certain LNG suppliers.


Shipping Lanes and Gas Pipelines


Access Route from Shipping Lane

MAIN PASS DEEPWATER NATURAL GAS PORT – CARRIER ACCESS

300'

200'

100'

175'

150'125'90

'80'70

'

60'

50'

RecommendedLNG Carrier Access Route

South Pass to Miss. R

iver Gulf O

utlet Safety Fairway

33 CFR 166.200



Carrier Access Circuit from Shipping Lane


Current Configuration


Location AdvantagesLocation:

Federal waters

210-foot (64 m) water depth

38 miles (61 km) east of Venice, Louisiana

16 miles (26 km) east of the mouth of the Mississippi River

Near existing pipeline infrastructure

Deepwater access for ships

Near shipping lanes

2-mile (3.2 km) diameter salt dome capable of accommodating numerous caverns having an estimated storage potential of +500 million barrels (80 MM m3)


NGL Pipeline to Venice

3 NG Caverns

L N G

Gas Pipelines:•To South Pass Block-55•To Main Pass Block-298•To Main Pass Block-164 and on to Coden, AL and other interconnect locations Surface Storage

Gas Conditioning Plant

Dehydration

Liquefied Natural Gas (LNG) Processing System

Comp

LNG Vaporization (SCV’s)

LNG VaporizationWHR


CA

RR

IER

Platform No.1 LNG Offloading, LNG Vaporization and Gas Conditioning Facilities

Storage Platforms 5 & 6 LNG Storage

Platform No.2 Gas Storage Systems Compression

BS-Y7 Quarters, Shop Warehouse

Soft Berth(Patent Pending)

TM

Platform No.3 LNG Vaporization and Power Generation

StorageCaverns 36" P

ipeline to

Coden, A

L.

16" Pipeline to MP298

20" Pipeline to S

P55

FACILITY LAYOUTFACILITY LAYOUT


Soft Berth™ - Compliant Mooring System


Design Advantages of Soft Berth™

Steel StructuresComplies with existing platformsDesigned to survive Cat 5 Hurricane

210-foot Water DepthSufficient depth to permit use of tuned mooringsAdequate keel clearance for LNG carriers

Reduces blockage effectsEliminates ground effects

Compliant BerthsReduces environmental concerns during berthing of LNG carriersGreatly reduces loads between LNG carriers and berth


Soft Berth™ Load

0.9%1.3%

0.8%1.5%

95.5%

Wind

Mean Drift

Slow Drift

Current

1s t order Wave

Wave Induced Loads on LNGC

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

7 8 9 10 11 12 13 14

Wave Period (sec)

Sway

(kip

s/ft

ampl

itude

)

Beam Seas Excitation Force on LNGC

Beam Seas Inertia Load by LNGC (including added mass)

Difference between Excitation and Inertia Load in Beam Seas


Plan Configuration


Key Points

Berth structures are compliant.

Only second order environmental loads between ship and berth.

Berths free to move due to first order loads.

Berths designed for 160,000 m3 carrier.

Can be upgraded for 250,000 m3 carriers.

Long-term data history indicates weather and sea conditions allow 95% operability for offloading ships.

Soft Berth™ – Patent Pending


BERTH OPERABILITY DESIGN APPROACH

Objective – high availability/operability

Determine MP 299 predominate seas

Design berth to accommodate LNGCs in predominate MP 299 seas

Confirm design model including operability in marine basin tests


From National Data Buoy Center web site at www.ndbc.noaa.gov

NDBC Buoy Near MPEH™

http://www.ndbc.noaa.gov/


MPEH™ Proximity to NDBC BuoyMPEHTM 29.30N 88.77W

NDBC Station 42040 29.21N 88.20W


MPEH™ Buoy42040~38 miles214 ft Depth780 ft Depth

Validity of Buoy Data at MPEH™


PARAMETER RANGE FREQ. AVG. PERIOD RESOLUTION ACCURACY

WIND DIR. 0 to 360 1.0 Hz 8 min 1.0 deg +/- 10.0 deg

WIND SPEED 0 to 62 m/s 1.0 Hz 8 min 0.1 m/s +/- 1.0 m/s

WIND GUST 0 to 82 m/s 1.0 Hz 5 sec 0.1 m/s +/- 1.0 m/s

WAVE HEIGHT 0 to 35 m 2.56 Hz 20 min 0.1 m +/- 0.2 m

WAVE PERIOD 0 to 30 sec 2.56 Hz 20 min 1.0 sec +/- 1 second

WAVE DIR. 0 to 360 2.56 Hz 20 min 0.1 deg +/- 10 deg

Average height of the highest one-third of the waves during a 20 minute sampling period.Average period of the highest one-third of the waves observed during a 20 minute sampling period. Mean wave direction corresponding to the highest one-third of the waves observed during a 20 minute sampling period.

Ten-minute average wind direction.

Ten-minute average wind speed values.

Maximum 5-second peak gust during the measurement hour.

DESCRIPTION

From National Data Buoy Center web site at www.ndbc.noaa.gov

NDBC Buoy Data

http://www.ndbc.noaa.gov/


Wind and Wave Probability Distribution


Weather Data – 8 years

1996 1997 1998 1999 2000 2001 2002 2003


Weather Data – 1 year


Weather Data – 3 Months


Weather Data – 2 Weeks


Tasks and Durations

Task # Condition Duration (hrs)

1 Ingress 1.02 Berthing 1.53 Connect Unloading Arm 1.0

4 Unloading (up to "Stoppage of Cargo Transfer)

13.0

5Normal Disconnect of Unloading Arm and Mooring & Berthing lines/Tugs Moving LNGC off Berth

3.0

6 Egress 0.5Total (Excluding W.O.W.) 20.0


Percent operability is based on the following assumptions:

Conclusion: 95%+ operability achieved including times when Tropical Revolving Storms are present in the Gulf of Mexico, this study considers all weather data over the eight year period.

• Berth design availability sea conditions•Berth: 6.6’ (2m) seas, 25 knot winds•Stay on berth: 8’ (2.4m) seas, 35 knot winds

• 1.0bcf/day base vaporizing rate, 72-hr arrival schedule• No down time due to equipment maintenance, repair, or failure

(i.e., equipment is always operable at rated capacity)• 8 years of weather data are used to compare environmental and

system response operating limits based on the task being attempted in a sequential, hour-by-hour basis from Jan 01, 1996 to Dec 31, 2003

Operability Study


Maritime Research Institute, NetherlandsMarine Basin Model Test Results

Basin model testing at Marin confirmed computer design models.

Marin is a recognized as a world leader in marine model testing.

Scale model tests confirmed a more than adequate operating weather window for Soft BerthTM .

Testing of a critical element – the Carrier motions relative to the allowable operating envelope of the Unloading Arms – confirmed a large window of operability.

Soft BerthTM performed as expected under both maximum operating and hurricane conditions.


Platform No.1 Elevation Looking North

SubmergedCombustion

Vaporizers (5)NGL Pipeline

Pumps (3)

DemethanizerColumns (2)

LNGUnloadingArms (4)

DeNOx Unit (5)

H.P. Sendout Pumps (8)


Platform No.3Upper Deck Elevation

SubmergedCombustion

Vaporizers (3)DeNOx Unit (3)

Gas TurbineGenerators (3)

ElectrochlorUnits

NitrogenGenerators

Air Compression EmergencyGenerator


ELEVATION LOOKING NORTHPLATFORM NO.2

Drill RigGas Turbine Compressors

Glycol Regeneration

Seawater Leach Pumps

Glycol Contactors

Platform No. 2 – Elevation Looking North


LNG Storage Platforms – Perspective View

SPB LNG STORAGE TANKS100'H x 120'W x 75'L(3 PER PLATFORM)

STORAGE PLATFORMSPERSPECTIVE VIEW


Salt Cavern: Geologic Overview

Salt DomeGas Cavern

Caprock

Surface

Wells drilled into the dome 4,000 feetWater circulated into the wellSalt cavern is leached as water “melts” away salt near the well boreGas is injected at high pressures


Salt Dome Storage Cavern Development 101


U.S. Salt Cavern Storage Sites

Bedded Salt – Operational

Bedded Salt – Proposed

Bedded Salt – Dead

Salt Dome– Operational

Salt Dome– Proposed

Salt Dome - Dead

U.S. Natural Gas Salt Cavern Storage

McIntosh

Spindletop

Moss Bluff

Houston Energy Cntr

North Dayton

Clemens

Boling

Jefferson Island

Markham

Starks

Pine Prairie

Hackberry

Hattiesburg

Richton

Southern Pines

Sorrento

Copiah

Eminence

Petal

Napoleonville

Grand Bayou

Magnolia

MPEHTM

Egan

Chiles Dome

Tioga

Bethel

Red Lake

Desert Crossing

Copper Eagle Kiowa

Yaggy Lacey

Morton

Avoca

Saltville

Seneca Lake

Waha

Salado

Southwest Wyoming

Liberty

Stratton Ridge

Salt Caverns


Cavern Design

Planned

300142299 298

Edge

of S

alt D

ome

20001500Feet10005000

Platform No.4

(App

rox

2 M

iles

(3.2

Km

) Dia

.)

Compression, Gas Storage Systems

LNG Offloading, Vaporization

Category Parameter

Size 20 in. (51 cm)Shoe Depth 4,210 ft. (1283 m)Salt Back 825 ft. (251 m)

Hanging String Size 10 3/4 in. (27 cm)

59.8 MMcf,10.7 MM bblsVolume

Diameter 250 ft. (76 m)Height 1280 ft. (390 m)

Volume 9.3 bcf (263 MM m³)Max. Gradient

@ casing shoe0.85 psi/ft

Max. Wellhead SIP

3,200 psig

Volume 5.3 bcf (150 MM m³)Min. Gradient

@ casing shoe0.25 psi/ft

Min. WellheadSIP

893 psig

Final Cemented Casing

Cavern

Gas

M.S.L. 0ft.

-1775 ft. (541 m)

-1675 ft. (511 m)

-1475 ft. (450 m)Liner

Top of Salt

Top of Anhydrite

Top of Caprock

36 in. (91 cm) Drive Pipe

30 in. (76 cm) Caprock Casing

24 in. (61 cm) First Cemented Salt Casing

20 in. (51 cm) Final Cemented Salt Casing

Mudline -210 ft. (64 m)

-5590 ft. (1704 m)

-4310 ft. (1314 m)

-4210 ft. (1283 m)

10-3/4 in. (27 cm)

Top of Salt + 100 ft. (30 m)

First Cemtd. Salt Casing

Casing Shoe

Top of Cavern

Bottom of Cavern

Hanging String

Platform No.2

Platform No.1

Shop & WarehouseAccommodations

Gas Storage Caverns

Softberth TM

(Patent Pending)

Working

GasBase

Meters4002000 600 800

20 in. (51 cm) Final Cemtd.Salt Casing

2-Mile (3.2 km) Diameter Salt DomeCapacity: 39 caverns: 10.7 MM bbls (1.7 MM m³) / 9.3 bcf (263 MM m³) each

Total Volume: 417 MM bbls (66 MM m³) / 363 bcf (10.3 bm³)

and Gas Conditioning

1.7 MM m³

Cavern Development Durations

General4Engineering/Well Permitting3Procurement of leaching equipment

Months

Well 14Drilling27Leaching @ 3500 gpm4Dewater42Total Well 1 (Includes Gen'l)

Wells 2 & 34Drilling27Leaching @ 3500 gpm4Dewater35Total Wells 2 & 3 (Excludes Gen'l)

NOTE:Drilling of wells is consecutive, leaching commences following drilling completion.

LNG Surface StoragePlatforms 5 & 6

Platform No.3LNG Vaporization and

Power Generation

Initial Gas Storage CavernSalt Dome Storage Potential



Scalability of Main Pass Energy Hub

Identical in size and storage potential to Mt. Belvieu

Expandable to 360 Bcf of storage capacity

Terminal expansion capacity

Development cost advantages

Identical in size and storage potential to Mt. Belvieu

Expandable to 360 Bcf of storage capacity

Terminal expansion capacity

Development cost advantages

Planned

300142299 298

Edge

of S

alt D

ome

20001500Feet10005000

Platform No.4

(App

rox 2

Mile

s (3

.2 K

m) D

ia.)

Compression, Gas Storage Systems

LNG Offloading, Vaporization, Gas Conditioning

Platform No.2

Platform No.1

LNG Surface Storage Platforms 5 & 6

& WarehouseAccommodations, Shop

Platform No.3

Gas Storage Caverns

SoftberthTM

(Patent Pending)

Meters4002000 600 800

2-Mile (3.2 km) Diameter Salt DomeCapacity: 39 caverns: 10.7 MM bbls (1.7 MM m³) / 9.3 bcf (263 MM m³) each

Total Volume: 417 MM bbls (66 MM m³) / 363 bcf (10.3 bm³)

and Power Generation

Salt Dome Storage Potential



Pipeline Header and Major Interconnections

The MPEH™ LNG terminal will have direct pipeline access to 8 major interstate pipeline networks serving the Eastern United States markets.

Facilities

main pass energy hub™ approved deepwater natural … · approved deepwater natural gas port...

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