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

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

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

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The Linde Group worldwide Global presence in more than 100 countries

The Linde Group

Group financials 2013 in short

Gases Division

Engineering Division

— 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 —Sep 2012 Rating: Lai

Moody : A3

S&P: A+

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Linde Engineering Markets & Global Rank Air Separation Plants

Hydrogen and Synthesis Gas Plants Top 1

Top 2

Top 1

Products:

Products:

— H2/CO/Syngas

— Oxygen

— Ammonia

— Nitrogen

— Gas removal

— Rare gases

— Gas purification

Olefin Plants

Natural Gas Plants Top 2

Top 3

Products:

Products:

— Ethylene

— LNG

— Propylene

— NGL

Top 1

— Butadiene

— LPG

Small & mid LNG

— Aromatics

— Helium

— Polymers

Sep 2012 Lai

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Linde Company Profile and Small to World Scale LNG Experience Latest LNG WINS 1) Canada, WoodFibre 2.1 MTPA 2) Russia, Gazprom 0.6 MTPA 3) China: PetroChina, 0.4 MTPA x 2 4) Malaysia: Petronas: 0.8 MTPA

Sep 2012 Lai

Judul Presetasi

26 Januari 2015

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Engineering Division Plants in South-East Asia Myanmar Yangon

Hanoi

Laos

Adsorption plants Air separation units Hydrogen and synthesis gas plants Gas processing plants Natural gas plants Petrochemical plants

Hainan

Thailand Sepon Manila

Bangkok

Cambodia Viet nam

Philippines

Sabah

Brunei Malaysia Sarawak Singapor

Borneo Sulawesi

Sumatra Indonesia

Papua

Jakarta

PapuaNeuguinea

Java Timor Sep 2012 Lai

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Content:

Linde Group Introduction Small Scale LNG Technology LE Small & Medium Scale LNG Plant References Economics of Small & Medium Scale LNG Plant LNG Transportation and Storage Key Messages

Sep 2012 Lai

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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

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Small vs Traditional LNG Liquefaction System

Capital Cost ($/LNG gallon/day)

Capital Cost Ratio 2 4 6 8

10

1000

800 600

Conventional  Negative Scaling Effect?

400 200

•Design brief: •Optimize for energy efficiency •Overcome scaling effects •Adaptable to various gas sources •Unmanned plant operation

 GTI Technology

?

0

 0 1000 2

10,000 16

100,000 160

1,000,000 1600

10,000,000 16,000

LNG Gallons Per Day MTPD Sep 2012 Lai

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

Small-scale

Medium-scale

GTI MRC

Large-scale

Conventional MRC including LE Cascade MRC

Nitrogen cycle (Brayton) Open Cycle Nitrogen Pressure let-down

Type GTI MRC Conventional MRC Cascade MRC Nitrogen (Brayton) Open Cycle Nitrogen Pressure Let-down (Turboexpander) Sep 2012 Lai

Positives High efficiency Low cost (1 compressor, no expanders) High efficiency Highest MRC efficiency Simple and robust Extremely simple Highest efficiency

Negatives Mixture management Size limits High capital cost Relatively low efficiency Cost depends on N2 cost Requires special circumstance 10

Small Scale Liquefaction Technologies Comparison

Sep 2012 Lai

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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

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LE Small Scale LNG Plant: 1) 50 TPD-Tasmania 3) 150 TPD-Melbourne

1)

2) 110 TPD-Norway 4) 175 TPD-Perth, Australia

2)

LNG Plant

3) Sep 2012 Lai

4) 13

LNG Project References: 900 TPD Stavanger 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 Sep 2012 Lai

Mixed Refrigerant 14

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LNG Project References : 1,250 TPD ShanShan 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

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

Customer: Xinjiang Jimunai Guanghui LNG Development Co., Ltd.

Capacity: 400,000 TPA LNG

Scope of Work: Basic Eng., Key Equipment Suppy, Detailed Eng., Construction, Start-up Supervision

Start-Up: 2012

Process: LIMUM® - CWHE Process with integrated NRU

Sep 2012 Lai

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LNG Project References: 700 TPD Beiniuchuan LNG Plant, PRC

Customer: Inner Mongolia Coal Chemical Co., Ltd.

Capacity: 280,000 TPA LNG

Scope of Work: Basic Eng., Key Equipment Suppy, Detailed Eng., Construction, Start-up Supervision

Start-Up: 2013

Process: LIMUM® - CWHE Process (steam turbine drive)

Sep 2012 Lai

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Content:

Linde Group Introduction LE Small & Medium Scale LNG Plant References Economics of Small & Medium Scale LNG Plant Project Execution Consideration LNG Plant Capacity Relative to NG Reserve (Stranded) LNG Transportation and Storage Key Messages

Sep 2012 Lai

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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 ~ 90 m

pretreatment, LNG, LPG, fractionation, condensate stabilization storage effluent MEG treatment regeneration liquefaction harmonic filters temp. power MEG water Hot oil storage generation

~ 500 m

Sep 2012 Lai

Slug catcher

~ 1.000 m

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Location, Dimensions Consideration

Sep 2012 Lai

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Linde Engineering

Global Gas Reserves > 150 Years Dominance of Smaller and more Unconventional Reservoirs The largest remaining undeveloped gas field are challenged by

Number/Size of Fields 1)

16 50-500 Tcf 163 641 668 940 1.620

5-50 Tcf 1-5 Tcf

•

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.

0.5-1 Tcf 0.25-0.5 Tcf 0.1-0.25 Tcf

5.085

0.01-0.1 Tcf

6.243