Public Disclosure Authorized Public Disclosure Authorized CNG for commercialization of small volumes of associated gas Public Disclosure Authorized Prepared by TRACTEBEL ENGINEERING S.A. Public Disclosure Authorized October 2015 TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................... 5 Introduction ............................................................................................................ 5 The CNG Chain ......................................................................................................... 5 Production ........................................................................................................... 5 Transportation ..................................................................................................... 6 Examples of CNG chain costs ................................................................................ 7 CNG market overview ............................................................................................. 9 Conclusions ........................................................................................................... 10 1. INTRODUCTION ............................................................................................................ 11 1.1. Abbreviations .............................................................................................. 11 1.2. Constraints for the recovery of associated gas as CNG .............................. 15 1.2.1. Nature of associated gas ......................................................................... 15 1.2.2. Constraints linked to CNG transportation .................................................. 16 1.2.3. Gas quality ............................................................................................. 17 1.2.4. Recovered gas pressure at the production site .......................................... 17 1.2.5. Stored gas temperature ........................................................................... 17 1.2.6. Production rate ....................................................................................... 18 1.2.7. Offloading Rate ....................................................................................... 18 1.2.8. Offloading conditions ............................................................................... 18 1.2.9. Safety ................................................................................................ 18 1.2.10. CNG ship certification .............................................................................. 19 1.2.11. Container design for marine transport ...................................................... 19 1.2.12. Onshore CNG transportation .................................................................... 20 2. STATUS OF CNG TECHNOLOGIES – MARINE CNG ............................................................ 20 2.1. Compressed Energy Technology AS ............................................................ 21 2.1.1. Technology ............................................................................................. 22 2.1.2. Marine transport vessels .......................................................................... 22 2.1.3. Certification ............................................................................................ 26 2.1.4. Key features and Comparison LNG ........................................................... 26 2.1.5. Commercial References ........................................................................... 27 2.1.6. Targeted Markets .................................................................................... 27 2.1.7. Potential Application for 1-15 MMscf/d Gas Production .............................. 27 2.2. EnerSea – VOTRANSTM ................................................................................ 27 2.2.1. Technology ............................................................................................. 27 1 2.2.2. Marine transport vessels .......................................................................... 30 2.2.3. Key features and Comparison LNG ........................................................... 33 2.2.4. Certification ............................................................................................ 33 2.2.5. Commercial references ............................................................................ 33 2.2.6. Targeted Markets .................................................................................... 33 2.2.7. Potential Application for 1-15 MMscf/d Gas Production .............................. 34 2.3. Sea NG COSELLETM ...................................................................................... 34 2.3.1. Technology ............................................................................................. 34 2.3.2. Marine transport vessels .......................................................................... 35 2.3.3. Key features and Comparison LNG ........................................................... 38 2.3.4. Certification ............................................................................................ 38 2.3.5. Commercial references ............................................................................ 38 2.3.6. Targeted Markets .................................................................................... 38 2.3.7. Potential Application for 1-15 MMscf/d Gas Production .............................. 38 2.4. TransCanada CNG Technologies ................................................................. 39 2.4.1. Technology ............................................................................................. 39 2.4.2. Marine transport vessels .......................................................................... 40 2.4.3. Key features and Comparison LNG ........................................................... 41 2.4.4. Certification ............................................................................................ 41 2.4.5. Commercial references ............................................................................ 41 2.4.6. Targeted Markets .................................................................................... 42 2.4.7. Potential Application for 1-15 MMscf/d Gas Production .............................. 42 2.5. Knutsen OAS Shipping AS ........................................................................... 43 2.5.1. Technology ............................................................................................. 43 2.5.2. Marine transport vessels .......................................................................... 44 2.5.3. Key features and Comparison LNG ........................................................... 46 2.5.4. Certification ............................................................................................ 46 2.5.5. Commercial references ............................................................................ 46 2.5.6. Targeted Markets .................................................................................... 46 2.5.7. Potential Application for 1-15 MMscf/d Gas Production .............................. 47 2.6. Trans Ocean Gas ......................................................................................... 47 2.6.1. Technology ............................................................................................. 47 2.6.2. Marine transport vessels .......................................................................... 48 2.6.3. Key features and Comparison LNG ........................................................... 50 2.6.4. Certification ............................................................................................ 51 2.6.5. Commercial references ............................................................................ 51 2.6.6. Targeted Markets .................................................................................... 51 2.6.7. Potential Application for 1-15 MMscf/d Gas Production .............................. 51 2.7. Marine CNG – Comparison of technologies ................................................ 52 2.8. Elements of Costs........................................................................................ 54 2 2.8.1. CNG transportation costs ......................................................................... 54 2.8.2. Gas treatment costs ................................................................................ 56 2.9. Conclusions for marine CNG ....................................................................... 57 3. STATUS OF CNG TECHNOLOGIES – ON-SHORE CNG ...................................................... 57 3.1. Background ................................................................................................. 57 3.2. Road bulk CNG transportation .................................................................... 59 3.2.1. Steel tube trailers .................................................................................... 59 3.2.2. GTM Type III cylinders module ................................................................ 59 3.2.3. Lincoln TITANTM 4 composite cylinders ..................................................... 60 3.2.4. Galileo Virtual Pipeline® ........................................................................... 60 3.2.5. Comparison of CNG transport and storage containers ................................ 62 3.2.6. Potential Application for