the linde group “small-medium scale lng...

The Linde Group

“Small-Medium Scale LNG Technology, Economics, Transportation, and Receiving Terminal”

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

Sep 2012 Lai 2

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 3

Group financials 2013 in short

— 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

— Rating: Moody : A3 S&P: A+

The Linde Group worldwideGlobal presence in more than 100 countries

The Linde Group

Engineering Division Gases Division

Sep 2012 Lai 4

Linde Engineering Markets & Global Rank

Air Separation Plants Hydrogen and Synthesis Gas Plants

Top 1

Products:

— Oxygen

— Nitrogen

— Rare gases

Products:

— H2/CO/Syngas

— Ammonia

— Gas removal

— Gas purification

Top 2

Products:

— Ethylene

— Propylene

— Butadiene

— Aromatics

— Polymers

Top 2

Olefin Plants

Top 1

Products:

— LNG

— NGL

— LPG

— Helium

Top 3

Natural Gas Plants

Top 1

Small & mid LNG

Sep 2012 Lai 5

Linde Company Profileand Small to World Scale LNG Experience

Judul Presetasi 26 Januari 2015

Latest LNG WINS1) Canada, WoodFibre 2.1 MTPA2) Russia, Gazprom 0.6 MTPA3) China: PetroChina, 0.4 MTPA x 24) Malaysia: Petronas: 0.8 MTPA

Sep 2012 Lai 6

Thailand

CambodiaViet

HainLaosMyanmar

Bangkok

Malay

Sumatra

Java

Indonesia

Singapor

Jakarta

sia

Brunei

Sarawak

Sabah

Borneo

Timor

Sula

wes

i

Manila

Philippines

Yangon

Hanoi

Sepon

nam

an

Papua-Neuguinea

Papua

Adsorption plants

Air separation units

Hydrogen and synthesis gas plants

Gas processing plants

Natural gas plants

Petrochemical plants

Engineering DivisionPlants in South-East Asia

Sep 2012 Lai 7

Content:


Small Scale LNG Technology




Key Messages

Sep 2012 Lai 8

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 9

Small vs Traditional LNG Liquefaction System

?

10002

10,00016

100,000 160

1,000,000 1600

10,000,000 16,000

LNG Gallons Per Day MTPD

0

200

400

600

800

1000Capital Cost ($/LNG gallon/day)

Conventional Negative Scaling Effect?

GTI Technology

•Design brief:•Optimize for energy efficiency

•Overcome scaling effects

•Adaptable to various gas sources

•Unmanned plant operation

Cap

ital C

ost R

atio

0

2

4

6

8

10

Sep 2012 Lai 10

The GTI MRC and LE MRC Technology Provides an Alternative to Nitrogen Cycles at Smaller Scales

Type Positives NegativesGTI MRC High efficiency

Low cost (1 compressor, no expanders)Mixture management

Conventional MRC High efficiency Size limitsCascade MRC Highest MRC efficiency High capital costNitrogen (Brayton) Simple and robust Relatively low efficiencyOpen Cycle Nitrogen Extremely simple Cost depends on N2 costPressure Let-down(Turboexpander)

Highest efficiency Requires specialcircumstance

Small-scale Medium-scale Large-scaleGTI MRC

Pressure let-down

Open Cycle Nitrogen

Nitrogen cycle (Brayton)

Conventional MRC including LE

Cascade MRC

Sep 2012 Lai 11

Small Scale Liquefaction Technologies Comparison

Sep 2012 Lai 12

Content:





Key Messages

Sep 2012 Lai 13

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

2)

3) 4)

1)

LNG Plant

Sep 2012 Lai 1414

LNG Project References: 900 TPDStavanger 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 1515

LNG Project References : 1,250 TPDShanShan 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 1616

LNG Project References : 1,150 TPD Jimunai LNG Plant, PRC

Customer:Xinjiang Jimunai Guanghui

LNG Development Co., Ltd.





Supervision

Start-Up:2012


with integrated NRU

Sep 2012 Lai 1717

LNG Project References: 700 TPDBeiniuchuan LNG Plant, PRC

Customer:Inner Mongolia Coal

Chemical Co., Ltd.





Supervision

Start-Up:2013


(steam turbine drive)

Sep 2012 Lai 18

Content:




Project Execution Consideration

LNG Plant Capacity Relative to NG Reserve (Stranded)


Key Messages

Sep 2012 Lai 19

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

~ 240 m

Slug catcher

MEG storage

temp. water Hot oil

MEG regeneration

effluent treatment

power generation

liquefaction

pre-treatment, fractionation, stabilization

harmonic filters

LNG, LPG, condensate storage

~ 1.000 m

~ 500 m

~ 90 m

Sep 2012 Lai 20

Location, Dimensions Consideration

Linde Engineering

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

Global Gas Reserves > 150 YearsDominance of Smaller and more Unconventional Reservoirs

The largest remaining undeveloped gas field are challenged by

• Geopolitics (e.g., Iran, Russia, Venezuela, Nigeria, etc.)

• Location (e.g. McKenzie Delta, North Slope, deep water, etc.

• Composition (e.g. Natuna – sour gas)

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

Small fields provide unconventional production challenges (e.g. tight sands, shale, coal-bed methane). Several U.S. independents have built their business on expertise in this area.

6.243

5.085

1.620

940

668

641

163

16

<0.01 Tcf

0.01-0.1 Tcf

0.1-0.25 Tcf

0.25-0.5 Tcf

0.5-1 Tcf

1-5 Tcf

5-50 Tcf

50-500 Tcf

Number/Size of Fields 1)

1) app. 80% on-shore

Sep 2012 Lai 22

LNG Production Base on Proven P1 and P2 Reserve

Proven Reserves P1 Reserve

In mmscfd

15 Years

In mmscfd

Gas Flow

mmscfd

LNG Capacity

In TPD

LNG Capacity

Per Annum

0.5 to 0.8 Tcf

(800 Bcf)

720,000 (P1)

400,000 (P2)

48,000 (P1)

26,700 (P2)

137 (P1)

76 (P2)

~3000 (P1)

~1640 (P2)

1.05 MTPA (P1)

0.57 MTPA (P2)

0.3 to 0.49 Tcf

(500 Bcf)

450,000 (P1)

250,000 (P2)

30,000 (P1)

16,700 (P2)

86 (P1)

48 (P2)

~1850 (P1)

~1025 (P2)

0.65 MTPA (P1)

0.38 MTPA (P2)

0.1 to 0.29 Tcf

(300 Bcf)

270,000(P1)

150,000 (P2)

18,000 (P1)

10,000 (P2)

50 (P1)

29 (P2)

~1106 (P1)

~614 (P2)

0.38 MTPA (P1)

0.22 MTPA (P2)

200 Bcf

180,000 (P1)

100,000 (P2)

12,000 (P1)

6,670 (P2)

34 (P1)

19 (P2)

~740 (P1)

~410 (P2)

0.26 MTPA (P1)

0.14 MTPA (P2)

50bcf 100Bcf

(50 Bcf)

45,000 (P1)

25,000 (P2)

3,000 (P1)

1,670 (P2)

9 (P1)

5 (P2)

~185 (P1)

~102 (P2)

65k TPA (P1)

35k TPA (P2)

Sep 2012 Lai 23

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

1.400

1.200

1.000

800

600

400

200

00 200 400 600 800 1.000

Capacity LNG, kTPA

Spec

ific

Cos

t (€

/ TPA

)

1.400

1.200

1.000

800

600

400

200

00 200 400 600 800 1.000

Capacity LNG, kTPA

Spec

ific

Cos

t (€

/ TPA

)

Key cost driver

• Feed gas composition and pressure

• Site conditions, plot space, location, existing infrastructure

• prefabrication, labor market

• standards

500-600 TPD Plant or 25-30 mmscfd, or 0.22MTPA

~1100 TPD or ~55mmscfd or 0.4 MTPA

Sep 2012 Lai 24

Typical Mid Scale LNG Plant CAPEX Breakdown

0

10

20

30

40

50

60

70

80

90

100

% of CAPEX

Supervision &ComissioningCivil & Construction

Equipment & Material

Engineering

Total CAPEX Distribution10 to 15%

50 to 55%

25-35%

~5%

Linde Engineering

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

Content:




Macro Environment and Linde Clean Energy


Key Messages

Sep 2012 Lai 26

Mode of Transportation for Small Scale LNG

Sep 2012 Lai 27

Small Scale LNG Storage

Sep 2012 Lai 28

LNG Truck via Shipping to Destination

Sep 2012 Lai 29

Content:

Linde Introduction: Linde Engineering

Linde Engineering in Small & Medium Scale LNG Plant



Key Messages

Sep 2012 Lai 30

Example of Small Scale LNG development in Norway and Sweden

1) Linde Engineering (LE) built 900 TPD (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

4) LNG Receiving Terminal is to supply Stockholm NG grid , supply Industries, marine and Transportation sector

Nynäshamn

12

3

Sep 2012 Lai 31

Linde Value PropositionNG Liquefaction, Shipping, Regasification and Supply

Production Processing & liquefaction

Storage & Regasification

Plant

Sea Transportation(outsourced)

Storage &

loading

Liquefaction

Plant

Transportation Final Customer

Customer

Regasification

Plant

Upstream

Integrated Small-Medium Scale LNG Supply Chain

Linde Value Proposition

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!

the linde group “small-medium scale lng...

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