Public Disclosure Authorized Public Disclosure Authorized Mini / Micro LNG 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 The LNG business background ...................................................................................... 5 The LNG chain ........................................................................................................... 5 Mini/micro LNG liquefaction Technologies ................................................................ 6 Mini/micro LNG market overview.................................................................................. 9 Conclusion ............................................................................................................... 10 1. INTRODUCTION ............................................................................................................ 11 1.1. Abbreviations .............................................................................................. 11 2. BACKGROUND ............................................................................................................... 13 3. LIQUEFIED NATURAL GAS (LNG) .................................................................................... 14 3.1. LNG business evolution in a nutshell .......................................................... 14 3.2. LNG terminals main codes and standards .................................................. 16 4. LNG EXPORTING FACILITIES .......................................................................................... 17 4.1. LNG liquefaction process for standard size terminals ................................ 18 5. MINI/MICRO LNG LIQUEFACTION TECHNOLOGIES .......................................................... 21 5.1. General ........................................................................................................ 21 5.2. Peak Shaving .............................................................................................. 22 5.2.1. Gas Expansion ........................................................................................ 22 5.2.2. Nitrogen Expansion ................................................................................. 23 5.2.3. Single Mixed Refrigerant (SMR) process .................................................... 24 5.2.4. Cascade ................................................................................................ 25 5.3. Associated Gas ............................................................................................ 25 5.4. Current status overview (technology screening) ....................................... 26 5.4.1. Linde / Cryostar ...................................................................................... 26 5.4.2. Black & Veatch ........................................................................................ 33 5.4.3. Chart ................................................................................................ 35 5.4.4. Wartsila / Hamworthy .............................................................................. 37 5.4.5. GE Oil & Gas ........................................................................................... 38 5.4.6. Galileo ................................................................................................ 40 5.4.7. Dresser-Rand .......................................................................................... 41 5.5. Liquefaction Process Gas Pre-Treatment Requirements ............................ 42 5.6. Summary of the mini/micro LNG liquefaction technologies ...................... 43 5.6.1. Capacity range by supplier ....................................................................... 43 5.6.2. CAPEX ................................................................................................ 44 5.6.3. Operating cost and specific consumption .................................................. 46 5.6.4. Greenhouse gas (GHG) emissions ............................................................ 47 5.6.5. Pros and cons of the main liquefaction processes ...................................... 48 5.6.6. Applicability to offshore projects .............................................................. 49 6. LNG STORAGE ............................................................................................................... 49 7. LNG TRANSPORTATION ................................................................................................. 51 7.1. LNG transportation by truck/trailer ........................................................... 51 7.1.1. LNG trailers characteristics ....................................................................... 51 7.1.2. Safety ................................................................................................ 52 7.1.3. Codes and standards ............................................................................... 52 7.1.4. LNG trailer costs...................................................................................... 53 7.1.5. Methodology for truck number calculation ................................................ 53 7.2. LNG transportation by ship/barge .............................................................. 53 8. RECEIVING FACILITIES .................................................................................................. 54 8.1. Unloading facilities ..................................................................................... 54 8.2. Storage ........................................................................................................ 55 8.3. Re-Gasification and Send-out ..................................................................... 55 8.4. Utilities and buildings ................................................................................. 57 8.5. Capital cost ................................................................................................. 57 8.6. Operating cost............................................................................................. 58 9. LNG MARKET IN THE UNITED STATES OF AMERICA ........................................................ 58 9.1. Overview of the natural gas market in the USA ......................................... 58 9.2. Overview of Small-scale LNG in the USA .................................................... 62 9.2.1. Peak shaving plants ................................................................................. 62 9.2.2. LNG as a fuel .......................................................................................... 64 9.2.3. Liquefaction projects at oil production sites ............................................... 69 10. LNG MARKET IN CHINA.................................................................................................. 71 10.1. Overview of the natural gas market in China ............................................. 71 10.2. Overview of Small-scale LNG in China ........................................................ 76 10.2.1. LNG as fuel for vehicles ........................................................................... 79 10.2.2. LNG as fuel for vessels ............................................................................ 80 11. LESSONS FROM USA AND CHINA.................................................................................... 82 12. APPLICATIONS FOR OTHER COUNTRIES ......................................................................... 83 12.1. Nigeria ......................................................................................................... 84 12.1.1. Macro perspectives .................................................................................. 85 12.1.2. Industry sector ....................................................................................... 85 12.1.3. Transportation network ........................................................................... 85 12.1.4. Energy matrix ......................................................................................... 87 12.1.5. Petroleum ............................................................................................... 87 12.1.6. Gas ................................................................................................ 87 12.1.7. Electricity ................................................................................................ 91 12.2. Iraq 93 12.2.1. Macro perspectives .................................................................................. 94 12.2.2. Industry sector ....................................................................................... 94 12.2.3. Transportation network ........................................................................... 95 12.2.4. Energy matrix ......................................................................................... 96 12.2.5. Petroleum ............................................................................................... 97 12.2.6. Gas ................................................................................................ 98 12.2.7. Electricity .............................................................................................. 100 12.3. Indonesia .................................................................................................. 101 12.3.1. Macro perspectives