Fre reeport LNG Liq iquefaction Pro roje ject <Title of - PowerPoint PPT Presentation

17 th 17 th INT INTERNATIONAL CO CONFERENCE & EXH XHIBITION ON ON 17 th INTERNATIONAL CONFERENCE & EXHIBITION LIQUEFIED NA LI NATURAL GAS GAS (LN (LNG 17 17) ON LIQUEFIED NATURAL GAS (LNG 17) Fre reeport LNG Liq iquefaction Pro roje ject <Title of Presentation> <Title of Presentation> By: Justin Capouch, CB&I By: <Author Name>, <Organization> By: <Author Name>, <Organization> April 16, 2013 <Date> <Date>

Introduction  Freeport LNG Regasification Terminal  Brazoria County, Texas, USA  2.0 Bcf/day send-out capacity  Proposed liquefaction terminal  Will be 2 nd LNG export terminal in “lower 48” states  Export capabilities up to 1.9 Bcf/day  Approximately 1% of U.S. trade deficit A World of Solutions TM 2

History  Freeport LNG Regasification Terminal development initiated in the early 2000’s  US gas supplies were dwindling  Large quantities of LNG imports expected by the late 2000’s  Freeport engaged a joint venture of Technip, Zachry, and Saipem  Construction began in 2005 and was completed in 2008  Commissioning cargo was received and the performance test was performed  Since then, Freeport’s customers have only used the facility for storage and re-export A World of Solutions TM 3

Market Conditions Natural Gas Production by Source (trillion cubic feet)  Surplus of U.S. natural gas reserves because of Shale accessibility The US now has more than 100 years of  natural gas supply. Lower gas prices long term make exporting  natural gas economically attractive. Significant difference between lower US  gas prices and higher international crude oil-linked gas prices expected to remain long into the future. U.S. Natural Gas Pipeline Network,  LNG buyers interested in diversifying 2009 supply and linking price to Henry Hub.  Freeport LNG proximity to:  Eagle Ford, Barnett, Haynesville-Bossier deposits Houston ship channel and Katy trading  Hubs A World of Solutions TM Source: EIA, Office of Oil & Gas, Natural Gas Division, Gas Transportation Information System 4

Health Safety & Environment  Freeport LNG is committed to HSE as a Core Value  Zero injuries since start up of the facility in 2008  Ongoing training to identify and mitigate hazards  CB&I and Zachry are also committed to HSE as a Core Value  People and the Environment are our most valuable asset! A World of Solutions TM 5

Environmental Challenges Concern Mitigation Erosion from ship traffic Recycle usable vegetation and replant along waterway to decrease erosion Destruction of plants in construction path Work only during limited time frames to Increased construction traffic minimize impact. Bussing employees to the island Waterway contamination from equipment Diligent equipment maintenance and spill spills prevention procedures Detailed Sound studies to reduce impact of Plant Noise louder equipment A World of Solutions TM 6

Existing Terminal  Two full containment 160,000 m 3 (1 million barrels) LNG storage tanks  Seven vaporizer trains capable of delivering 2.0+ Bcf/d of gas to intrastate pipeline connections  Unique ambient air heating system to substitute fired heaters during warm weather periods  State-of-the-art marine dock facility to accommodate largest LNG tankers built  Nine miles of 42-inch pipeline to transport gas to pipeline connections at Stratton Ridge  Underground gas storage cavern at Stratton Ridge (4.5 Bcf of working gas) A World of Solutions TM 7

Expansion to Liquefaction Freeport LNG is well suited to develop a  liquefaction project.  A financially strong company with proven, experienced operating and management organizations.  Utilization of FLNG’s existing infrastructure represents an advantage of lower capital and operating costs compared to a grass roots facility.  The FLNG terminal will be able to react to domestic and global gas market fluctuations to import/vaporize or liquefy/export. A World of Solutions TM 8

Facilities for Expansion  2 nd LNG Loading berth  Gas Pretreatment  Liquefaction  Additional Boil Off Gas Handling  Additional LNG Storage A World of Solutions TM 9

Pre-Treatment Facility Inlet Reception Acid Gas Feed Gas Metering and Mercury Compression Removal from Removal Pipeline Treated Gas to Dehydration NGL Removal Compression Liquefaction NGL Product to Pipeline A World of Solutions TM 10

Liquefaction APCI C3MR Liquefaction Process TREATED GAS MAIN CRYOGENIC HEAT EXCHANGER Three propane 4.4 mtpa 13.2 mtpa in 1.9 Bcf/d of pre-cooled mixed per Train aggregate natural gas. refrigerant trains A World of Solutions TM 11

Terminal Transition  Liquefaction technology: AP-C3MR (Air Products – Propane and Pre-cooled Mixed Refrigerant) Air Cooled, Electric Motor Drive Refrigerant Compressors   Vessel Traffic: 200 Ships per year  About 700MW of power A World of Solutions TM 12

Challenges – Land Acquisition  Leased 170 acres adjacent to the current plot  Purchase of land adjacent to the existing pipeline for the pre-treatment facility A World of Solutions TM 13

Challenges – Engineering Design  Soil Conditions on Liquefaction Site  Dredge Material Placement Area  Extensive geotechnical studies performed  All foundations will require piles  Potential Storms  All facilities designed to withstand a category 5 hurricane event  All facilities grade levels set above potential storm surge  Electrical System Design  Working with Center Point for robust supply  75 MW motors  Variable speed drives A World of Solutions TM 14

Regulatory Status Regulatory Agency Review Basis Submission  Environmental impact – required Federal Energy Regulatory Commission (FERC) for construction  Trade to non-FTA countries Department of Energy (DOE)  Safety, location, traffic U.S. Department of Transportation (DOT)  Varies Other Federal, State and Local agencies North American LNG Import/Export Terminals Proposed/Potential A World of Solutions TM Source: FERC, Office of Energy Projects 2/21/2013 15

Community Involvement  Freeport LNG developed a good relationship with the local community during the construction of the existing terminal  Freeport LNG has held several open house meetings to inform the public of its future plans and regularly keeps in touch with the local community elected officials A World of Solutions TM 16

Project Status Freeport LNG Liquefaction Project Schedule 2012 2013 2014 2015 2016 2017 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th Feed Agreement Formal FERC Application FEED Completion DOE Export Ruling EPC Proposal FERC Approval EPC Notice to Proceed Commence Construction Train 1 Operation   Liquefaction tolling agreements for Train 1 Completing FEED volumes with Osaka Gas and Chubu Electric  EPC Execution Plans near completion executed in July 2012  Arranging financing for the first two Trains  Liquefaction tolling agreements for Train 2 volumes with BP executed in February 2013  Responding to data requests from FERC  Negotiating with potential customers for Train 3 volumes A World of Solutions TM 17

Future Liquefaction Facility A World of Solutions TM 18