Medium-scale 10-200Mid-sized units 1000 4000 - 10 units

Peak-shaving plants Smaller plants that are connected to a gas network. During Small-scale 1,0-20,0 the period of the year when gas demand is low, natural gas is liquefied and LNG is stored. LNG is vaporized during short periods when gas demand is high. These plants have a relatively small liquefaction capacity (as 200 tons/day) and large storage and vaporization capacity (as 6000 tons/day). Especially in the US many (57) such plants exist Peak Shaving Units 50 300 + 100 units LNG peakshaving (flare) 5,0-20,0

Small-scale plants Small-scale plants are plants that are connected to a gas Mini LNG >1network for continuous LNG production in a smaller scale. The LNG is distributed locally by LNG trucks, in a range of about 300 km from the production facility, to various LNG fueling stations 0.5-10customers with a small to moderate need of energy or fuel. _______________________________________________________________________________This type of LNG plants typically has a production capacity Type of LNG Liquefier Capacity Plants & Plant Type Capacity (MMscfd/mtpd)below 100 000 tpa. In Norway three plants within this category tonnes/day Locationis in operation

TPG-4140 LNG Liquefaction Capacities Plant categories by capacitiesLNG, fundamentale prinsipp ON-BOARD RELIQUEFACTION Medium-Scale LiquefactionBengt Olav Neeraas FOR Technology18/09/2007 LNG SHIPS Tim CORNITIUS

Klaus-Dieter Gerdsmeyer SYNGAS Refiner10th TGE Symposium June 10, 2005

Small, Mid-Scale Liquefaction Processes

Black & Veatchs PRICO process uses single-MR loop/single Kryopaks EXP - single-cycle turbo-expander refrigeration uses refrigeration compression system: nitrogen, methane, ethane, propane, inlet process gas as refrigerant. No mixed refrigerant (MR) required. iso-pentane. MR compressed/partially condensed prior to entering PCMR - pre-cooled MR: nitrogen, methane, ethane, butanes w/ cold box w/PFHE cores. Used for peakshaving, vehicle fuel supply, conventional refrigeration circuit for pre-cooling. SCMR - single-cycle gas distribution systems: 4 to >180 MMscfd. MR system used for MR: nitrogen, methane, ethane, butanes and pentanebaseload, peakshaving. BV has 16 operating plants: 4 to 360 MMscfd and nine projects under development. Chart Energy & Chemicals provides process design thru

engineering, construction, startup to meet small-plant requirements. Linde LEs advanced single-flow for mid-scale 0.2-1.0-MTPA Designed cold boxes for Phillips Cascade Process and provides plants. Liquefaction occurs in SWHE. Basic single-flow for small

Types of LNG Satellite PlantsAlmacenamiento Consumo Ubicacin

m3 ton Nm3/hr NoruegaCalentamiento de Hogares 30 12,15 200 TuhagenServicio de Carga L/CNG Vehicula 54 21,87 300 MannsverkPlantas Industriales Pequeas 60 24,30 600 AalesundPlantas de Distribucin/Almacn 257 104,09 SnurrevardenServicio de Carga Naval 1000 405,00 HalhjemPlantas Industriales Medianas 1250 506,25 2000 ElkemPlantas Industriales Grandes 1500 607,50 4200 SunndalsoraPlanta de Recepcin Costera 3400 1377,00 Kollsnes

Jiirii Zeman,, Petr Zaruba / Chart Ferox. Progress in Satellite Plant Technology. 2nd Intl. Conference Small Scale LNG in Europe Bergen, Norway. 22.- 24. May, 2007

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Small-scale LNG Plant Technologies32 H Y D R O C A R B O N W O R L D 2 0 0 7a report byC h r i s t i a n D T B e g a z o , E r i c a C C a r v a l h o and J o s R S i m e s - M o r e i r aSISEA Alternative Energy Systems Laboratory, Mechanical Engineering Department,Escola Politcnica, Universidade de So PauloKirillov N G, Analysis of Modern Natural Gas Liquefaction Technologies, Chemical and Petroleum Engineering(2004);40: pp. 78.

S S L P l a n t C l a s s i f i c a t i o n

From a general point of view, the SSL processes canbe grouped into two major groups, namely openloop,in which the refrigerant fluid is part of the feedgas, and closed-loop, where the natural gas coolingand liquefaction is attained by a auxiliary refrigerantthat flows continuously in a separated circuit.

Openloopsystems are based mainly on a successivecompression-cooling-expansion process of the naturalgas. The last expansion stage is usually carried out ina turbo expander (TEX) to obtain LNG.

Closed-loopsystems operate using a single cryogenic refrigerant ora selected blend of refrigerants to cool the natural gasstream. Nitrogen, methane and a mix of these withother hydrocarbons are also used. In the latter case itis said a mixed refrigerant (MR) cycle. Table 1summarises some commercial cycles according to thetwo classifications presented above and other relevantinformation regarding technologies, efficiencies andcapacity. The technologies presented are by no meansexhaustive, but rather a sample of some of them.

Seventeen Key Conclusions from the Research7. Liquefaction for domestic trade also is growing at an incredible

1. While the amount of operational small- and medium-scale baseload rate of 38% per year. This is leading to soaring demand for tanker liquefaction is small currently with capacity of just more than 1.0 million trucks, vacuum-jacketed containers and other equipment associated metric tons per year (mty), capacity of more than 6.0 million mty is under with domestic distribution. Currently, an estimated 1,200 LNG construction at 14 sites. By the end of 2010, the industry should have tanker trucks are in operation and another 300 are on order, most capacity of some 7.0 million mty in place. in China. Next waves will also include LNG tanker rail cars and

more short-haul marine vessels. 2. Moreover, plans for another 9.5 million mty of small- and medium-scale liquefaction has been announced. In the unlikely event that all capacity 8. Because smaller plants tend to focus on domestic, over-the-road currently planned were to be built, this sector of the industry would exceed distribution and do not require marine loadout facilities, their cost 16 million mty. per ton/year of capacity tends to be competitive with larger plants

at $500 and 1,000 per mty. 3. At an average capital cost of $750 per ton/year of capacity, capital spending on small- and medium-scale plants should exceed $2.0 billion 9. Three small plants (less than 250,000 mty) currently are equipped per year for the next five years. with marine loadout facilities. At least one exports cargos via

coastal tanker.4. Capacities are growing larger. The capacity of the average-sized operational small- to medium-scale plant currently is just 55,000 mty; 10. Two owners of domestic-oriented liquefaction plants are using the capacity of the average-sized plant under construction is 334,000 mty; their experience to move into international trade served by world-scale and the capacity of the average-sized plant that is on the drawing LNG carriers. boards is 716,000 mty.

11. In 2004, investors in public equity markets in Hong Kong, Jakarta, 5. Newer plants also tend to be export-oriented. Currently, about Oslo, London and New York began to awake to the value of 19% of small and medium-scale baseload plants export product. entrepreneurial firms investing in small- and medium-scale LNG. By 2011, more than half of the small and medium-scale liquefaction Nine pure-play small- to medium-scale LNG developers are currently capacity will be exporting product, some supplying full-scale cargos traded with a market capitalization of $3.5 billion. to standard transoceanic LNG carriers. Sponsors of more than 90% of the proposed capacity intend to export their product. 12. Six of the nine pure plays have gone public in the past three years.

These entrepreneurial firms are intent on standardizing low-cost, 6. The average-sized medium-scale export project has a capacity of modular liquefaction systems to monetize between 1,000 to 2,000 1.15 million mty. The largest proposed is about 2.6 million mty. mid-tier gas fields worldwide. The average-sized plant for domestic markets has a capacity of 100,000 mty, but many new units will exceed 500,000 mty.

13. Not a single major international oil company is involved in this space. Although Shell and StatoilHydro have interests in Gasnor and Pertamina has interests in Donggi-Senoro.

14. A weighted investment in all nine pure-plays would have earned a 23.5% rate of return in 2007.

15. The concept of highly standardized mass-manufactured liquefaction trains is leading to intensive investment in floating liquefaction such that the first two floating production, storage offloading vessels (LNG FPSOs) are under construction for operation early next decade. Nine regions of the world seem suited for floating liquefaction.

16. If the current push to tip the scale on medium-scale economics is successful, Zeus researchers predict that between 20 and 25 million metric tons of LNG will be produced by this market sector by 2015.

17. This technology coupled with sub-sea cryogenic pipe and single point mooring cryogenic load-out systems, will help the LNG industry disaggregate supply possibly into the hands of more than 50 suppliers exporting from as many as one hundred plants by 2025.

Operating small-scale liquefaction plants Planned small-scale liquefaction plants

Production Facility Location Daily Production (g/d) Production Facility Location Daily Production (MMscfd)US USClean Energy Willis, TX 100 KeySpan Energy Brooklyn, NY 8.5 (Expander)Earth Biofuels Topock, AZ 86 Washington Gas Chillum, MD 5 (PRICO)ExxonMobil Shute Creek, WY 70 Peoples Gas Light/Coke Fisher, IL 15 (PRICO)Williams Ignacio, CO 30BP Evanston, WY 30 China Pioneer Natural Res. Satanta, KS 20 Erdos-Xingxing Gas Co. Xingxing 36 (BV; remote gas;)

CNOOC Zhuhai, Guandong 20 (BV; turbine drive; 2007)China Dazhou Dazhou 34 (BV; clone of Erdos)Guanghui LNG Plant Xinjiang (Shan Shan) 55 MMscfd (Linde) Yongda Yongda 36 (BV; clone of Erdos)Hainan LNG Plant Hainan Island 10 MMscfd (Propak; EXP) Lanzhou Lanzhou 12 (BV; municipal gas)Xinao LNG Plant Weizhou Island 6 MMscfd (Kryopak; flare) HongKong Towngas CBM Shanxi 6 (Kryopak, 2007)

Shanxi LNG Ltd. Shanxi 50 (Kryopak, 2007)Germany Wuxi Yongda Gas LNG Congqing, Sichan 37 (2007)Bayerwerk AG Gablingen 45 kmol/h Pacific Asia CBM Guizhou 30 (Kryopak, 2008)

Norway Australia Naturgass Vest Bergen 120 tpd (Linde) Wesfarmers Gas Ltd. Kwinana, WA 180 tpd (Linde; 2008)

Norway Statoil Hammerfest 13,000 tpd (Linde; 2007)

Scotland Transco National Energy Scotland 12 (EP)

Entrepreneurs at LNGs Gate PROSPECTUSSmall, Medium-Scale Liquefaction Plant Development Survey, Analysis Spring 20082 Copyright Zeus Development Corp (www.ZeusLibrary.com)

IntroductionDuring the research, however, analysts found that managers at each

The LNG industry is on the cusp of major change a group of highly firm are largely unaware of others that share their goals. This report motivated entrepreneurial firms, 21 in total from China, Japan, Australia, is the first to review and compile worldwide efforts to downscale LNG Indonesia, Norway, South America and North America, are using to monetize smaller (mid-tier) reserves and thereby open up the market. standardized liquefaction technology with capacities less than 3.0 million Zeus identified 34 small and medium-scale liquefaction projects under metric tons per year (mty) to develop new gas markets and go after development, ranging from capacities of 50,000 mty to 2.7 million mty.fields too small for world-scale trains. Current liquefaction volumes Each is reviewed and analyzed.at 1.0 million metric tons are small, but already another 6.0 million metric tons is under construction for commissioning during the next Accompanying databases of 53 small and medium-scale baseload three years. Public equity markets are enthused. Seven different liquefaction projects1, including 19 that are operational and 18 under markets in Hong Kong, Sydney, Oslo, Jakarta, London and New York construction, are provided in the appendix to the report and online atoffer stock of twelve of the entrepreneurial enterprises; nine can www.ZeusLibrary.com.beconsidered pureplays, valued at $3.5 billion (see Figure P-1).

The online databanks will be updated and expanded as new projects If they are successful, these firms will bring in large amounts of LNG are announced and details learned.supplies as perhaps hundreds of fields less than 10 trillion cubic feet are monetized. LNG would then more closely resemble the LPG industry, where suppliers, distributors and transporters of all sizesand business models compete for a larger market.

These newcomers are highly diverse, ranging from upstart firmscomprised of seasoned LNG executives to new management teamsin staid enterprises. Some intend to seize first-mover advantage by taking regional markets. Others are attempting to pioneer whole newclasses of technology, such as LNG floating production storage offloading (FPSO) vessels. They all share, however, the common goal of using modularized equipment, manufactured and assembledefficiently with short lead times, and standard business practices to develop projects simultaneously.

Cost Effective Small-scale LNGTechnology Using MixedRefrigerant CycleBryan Luftglass, Steve Eckhardt and Rustam SethnaLinde BOC

Established processes for smallscale LNG plants -comparison and furtherimprovementBarbara ButtingerSmall Scale LNG Conference Bergen, 23.05.2007Linde Engineering

Conclusion Single MRC efficiency beats double expander cycle by 50% Pressurized LNG storage increases liquefaction capacity byanother 16% Modularization concept for single MRC reduces cost and projectexecution time significantly

Upgrading Existing Small ScaleLNG Plant at Kollsnes&Development of mini MCR basedLiquefaction, or Mini LNG plants

< In performance-speak >

Upgrading Existing Small ScaleLNG Plant at Kollsnes&Development of mini MCR basedLiquefaction, or Mini LNG plants

< In economics-speak >

LNG Process Energy Usage Comparison (Assumed 100% Compression Efficiency)

kW/ton-day LNG HP/lb-LNG

Kryopak EXP 15.5 0.23 Small Scale

Kryopak PCMR 13.0 0.19 Base Load, Small Scale

APCI (C3MR) 12.2 0.18 Base Load

ConocoPhillips (OCR) 14.1 0.21 Base Load

Prico (SMR) 16.8 0.25 Base Load, Small Scale

Sell (DMR-SMR) 12.5 0.18 Base Load ABB Dual Expander Cycle

TEX + C3R 13.5 0.20 Small Scale

Dual TEX Cycle 16.5 0.24 Small Scale Pre-Cooled Dual TEX Cycle 13.0 0.19 Small Scale

TEX - Turbo-Expander

OCR - Optimized Cascade Refrigeration

SMR - Single Mixed Refrigeration

DMR - Dual Mixed Refrigerant

C3R - Propane Pre-Cooled

Process

Energy Consumption

Application

Note: C3MR - Propane Mixed Refrigeration

PCMR Pre-Cooled Mixed Refrigerant

EXP - Turbo-Expander

http://www.kryopak.com/lng_process_energy_usage_comparisons.php