LNG & Natural Gas

1. Natural Gas as Fuel 2. Gas/LNG Characteristics 3. Gas Production Scheme 4. Gas/Energy Transportation 5. LNG Chain 6. LNG Cost Breakdown

1. Natural Gas as Fuel

Abundant Physically Clean Burning High Efficiency Simple Handling Reliable Business

2.1 Comparison of Emissions_1

SOx and NOx Emissions from Power Plant
5000

2. Gas/LNG Characteristics

Average Carbon Dioxide Emission

Emission mg/m3

100

SOx Nox Sox NOx SOx NOx COAL OIL GAS No control Conventional control

Percent Emitted
0

COAL

OIL

GAS

Conventional Combined Cycle

2.2 Comparison of Emissions_2

Plant Type Fuel Waste Consumed Solid (Tons) (Tons) 16500 14800 2000 1800 SO2 Produced (Tons) 350 NIL NOx Produced (Tons 50-150 10-50 CO2 Produced (Tons) 39000 35000

Coal (1% Sulphur) Conventional Gasification IGCC Fuel Oil (3.5% Sulphur) Conventional Natural Gas Conventional Combined Cycle

10200 7800 6500

5 NIL NIL

750 NIL NIL

40-75 15-75 10-50

33000 21000 18000

Typical Average Daily Activity of 2000 MW Power Plant

Summary of Main Differences between Types of Fuels

Hazard Toxic Carcinogenic Flammable Uncontrolled Flame Characteristic Form Vapor Cloud Asphyxiate Other health Hazard Flash Point F Boiling Point F Flammable Limit % Vapor Cloud Explosion Stored Pressure Behavior if spilled LNG No No Yes Smokeless blue flame Under special condition Yes, in confined space No LPG No No Yes Smoky Yes Yes, same as LNG No Gasoline Yes Yes Yes Black Smoke Yes No Eye irritant, narcosis, nausea, others -50 90 1.3 - 6 Yes Ambient Fuel Oil Yes Yes Yes Black Smoke No No Same as Gasoline 140 400 N/A N/A Ambient Same as Gasoline

2.3 Natural Gas Hazard

-156 -44 2.1 - 9.5 Yes Ambient Pressurized Evaporates, Evaporates, Form a flammable forming visible forming explosive pool. cloud that vapor cloud Environmental disperses readily cleanup required

-306 -258 5 - 15 No Ambient

Source Gastech 2002

2.4 Raw Gas Properties_1

H2S CO2 Contents
H2S Content
10 8 6 Percent 20

CO2 Content

4
2 0 Middle East Asia Pacific

Percent

10

0 Middle East Asia Pacific

2.5 Raw Gas Properties_2

Methane, Ethane Content
Methane Content
100 80 60 Percent 100 80 60 Percent

Ethane Content

40
20 0 Middle East Asia Pacific

40
20 0 Middle East Asia Pacific

2.6 Raw Gas Properties_3

Heavier Components
Content of LPG Components
100 80 60 Percent 100 80 60 Percent

C5+ Content

40
20 0 Middle East Asia Pacific

40
20 0 Middle East Asia Pacific

2.7 LNG Composition (Import Base)

Alaska Brunei Das Heavy Indonesia Indonesia Algeria Algeria Bontang Arun Libya Malaysia Light

C1
C2 C3 C4 C5

99.80
0.10 0.00 0.00 0.00

89.83
5.89 2.92 1.30 0.04

77.20
21.30 1.3 0.10 0.00

89.95
5.46 3.14 1.39 0.04

87.82
7.99 3.07 1.04 0.02

86.98
9.35 2.33 .53 0.00

92.55
5.37 0.59 0.24 0.00

67.70
19.80 8.70 3.10 0.70

94.00
4.00 1.00 1.00 0.00

N2
Total GHV Btu/SCF

0.10

0.02

0.10
100.00 1193

0.02
100.00 1132

0.06
100.00 1140

0.71

1.25

0.00

0.00

100.00 100.00 1010 1129

100.00 100.00 100.00 100.00 1123 1052 1382 1078

3. Gas Production Scheme

Re-injection

Gas (Condensate) Reservoir

Product Station Gas Processing Complex

Sales Gas
To Market LNG Ethane LPG Fuel and/or Chemical Feedstock

Associated Gas
Oil Reservoir

Product Station

Condensate

To Refinery

4. Gas/Energy Transportation 4.1 Energy Transportation Options

Gas Pipeline LNG GTL GTW CNG NGH

4.2 Energy Transportation Scheme

Gas Field Treatment Processing Compressor Station

P/L LNG GTL CNG GTW

Liquefaction Receiving & Re-gas Terminal Receiving Terminal Gas Pipeline Grid Land & Coastal Transport

GTL Conversion Simple Compress. Power Station & Converter

Users

Power Plant

Inverter

Electrical Grid

4.3 Capacity Distance Diagram

10.0 PIPELINE LNG

Capacity (BCM)

1.0

CNG GTW NGH

GTL

0.1 100

1000 Distance (km)

10000

WGC 2003

4.4 LNG vs. Pipeline

2 X 4 MTPA LNG or 11 BCMA

(exclude feed gas)

Onshore Pipeline
3

33 BCMA Onshore Pipeline

LNG

$/GJ

2000 km

4000

6000

8000

10000

WGC 2003

5.1 LNG Chain Overall

Liquefaction

5. LNG Chain

Town Gas Gate

Upstream Gas Production

Marine Transportation

Receiving Terminal

Power Plant

5.2 Overall Gas Balance

Fuel Gas
[10] Raw Gas [100]

Heating Medium Compressor Driver Power Generation

BOG

Gas Gathering

Pre-treatment

Gas

Liquefaction [2]

LNG [91]

[99]
Heavy Components SCV Gas [86]

Storage Loading [88] LNG

Fuel Gas(NNF) BOG Receiving Terminal

Marine Transportation LNG [86]

BOG [2]

To Users

Gas [86]

Pipeline

Boiler

[ ] Index based on heating value : 100=Raw gas base

6. LNG Cost Breakdown

6.1 Key Factors on Gas Delivery Cost

Raw Gas Cost Project Scale Marine Transportation Distance

Seasonal Fluctuation in Gas Demand

LNG Ship Capacity Gas Specification in End User Distances of Distribution Pipeline

6.2 Gas Cost in LNG Chain_1

Typical Breakdown

Field Development Liquefaction

10-20 % 25-35 %

Marine Transportation Receiving Terminal Gas Distribution/Marketing or Power Plant

15-25 % 5-15 % 25-35 %

6.3 Gas Cost in LNG Chain_2

From 1995 to 2000

Early 1995s Upstream Development Liquefaction Marine Transportation Re-gasification Total 0.5 - 0.8 1.3 - 1.4 1.2 - 1.3 0.5 - 0.6 3.5 - 4.1

Early 2000s 0.5 - 0.8 1.0 - 1.1 0.9 - 1.0 0.4 - 0.5 2.8 - 3.4

Source WGC 2003

6.4 Cost Breakdown_1

Project Scale
Ratio of Total Cost per MMBTU 0 20 40 60 80 100 BASE 6 MTPA 72 17 11 11 100

120

140

8 MTPA

64

17 10
91

4 MTPA

79

17

12

108 Liquefaction Marine Transportation Re-gasification (Receiving Terminal) Transportation Distance : 1700 Sea mile

6.5 Cost Breakdown_2

Transportation distance
Ratio of Total Cost per MMBTU 0 20 40 60 80 100 BASE Distance = 1700 sea mile 72 17 11 11 100

120

140

Distance = 6500 sea mile

72

54

11 137

Liquefaction Marine Transportation Re-gasification (Receiving Terminal)

Project Scale : 6 MTPA

6.6 Cost Breakdown-3

Seasonal Fluctuation
Ratio of Total Cost per MMBTU 0 20 40 60 80 100

120

140

BASE Seasonal Fluctuation Factor X= 0 %

Seasonal Fluctuation Factor X= 5 % Seasonal Fluctuation Factor X= 10 %

72

17

11 100

72

17

16

105
72 17 21 110 Liquefaction Marine Transportation Re-gasification (Receiving Terminal) Project Scale : 6 MTPA X= (Required Storage Volume due to Seasonal Gap in Gas Demand) x 100 (Annual Gas Consumption in Volume)