Can I get copy of this slides? Yes, your request to me at for a copy.

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1 Michael Choi DLOnline 21 January - Questions/Answers Shashwat Parsana John Pirraglia So - basically, the gas used for LNG needs to be more pure than sales pipeline gas - correct? Yes. Here is the comparison for LNG/pipeline: H2O: 100ppb/7 lb/mmscf; CO2: 50ppm/1-3%; H2S: same at 4ppm. Can I get copy of this slides? Yes, your request to me at Michael.s.choi@cop.com for a copy. Is there much disruption to flowing gas into the facility due to liquefaction plant trips or intra-day flow variation? A well designed and operated LNG plant has very high uptime and very little unscheduled downtime. Well dynamics and short term field interruptions are accommodated by pipeline linepack to keep feed constant to LNG plant. Jesse Walker What is the efficiency of a plant in terms of BTUs consumed / BTUs liquified? Depending on ambient temperature, composition of feed gas and driver selection, typical BTU consumed ranges from 6-12%. Zbigniew Krol Fritz Pierre Debra McLellan What is CAPEX, OPEX average cost per 1 T of LNG? It is difficult to say. CAPEX and OPEX are very much dependent on location, size of train/plant, site conditions, time frame, etc. How about electric drives for baseload plants? Electric drives can certainly be used for baseload plants. With modern motors, variable speed drives and power systems, there are no technical barriers. Although studies have shown electric drives plants can be more reliable and have higher availability, they are more CAPEX intensive. What are the relative savings of a near shore plant in contrast to constructing a jetty? It is difficult to generalize since it is very project specific. Savings will depend on the on-shore plant site condition, i.e. soil properties for foundations, long of jetty required, amount of dredging required for ship access, onshore or offshore gas production, etc. and seabed condition of the near-shore plant, availability of convenient site to build concrete near-shore plant, etc. Rodrigo Antonio Melisan Amancio da Matta What kind of cryogenic technology will be used at North Alaska megaproject? No selection has been made. Depending on partners decision (BP, ConocoPhillips and ExxonMobil), selection may be a Pre-FEED deliverable.

2 Fritz Pierre Douglas Wood Ross Frazer Dario Frigo Amin Mirhadi Fritz Pierre What are the challenges with plate fine exchangers. What are the advantages and disadvantages of both heat exchangers? Spiral wound exchangers are more mechanical robust than plate fin exchangers, therefore can tolerate greater temperature shock and flow dynamics. While there are only 2 manufacturers of spiral wound exchangers, plate fin may be sourced from many vendors. There is no size limitation on plate-fin since multiple cores can be manifold into a cold box. Spiral wound is limited to manufacturer capability and transportation. How do the economics of LNG compare to GTL? At the current state of the technology, LNG is more favorable. Although it is less costly to ship GTL product, GTL plant CAPEX is high than LNG and only about half of the energy value of the methane is recovered as GTL product(s). What are the hazards if LNG storage leaks or is broached? There has never been a major a LNG tank failure reported. Small leaks of the primary container (inner tank) have been reported and are handled by nitrogen purge of the annular space to keep below flammable limit. Do you have significant issues from chemicals added upstream of the plant, e.g. for flow assurance, corrosion control, etc.? No. All liquid chemicals added are either dissolved in the oil (condensate) or water phase, or scrubbed out at the inlet. The more volatile compounds such as methanol are usually condensed and removed in the pre-cooling process or NGL recovery. The residues that made it into the LNG are very minute and insignificant. Any recommendation for a good source on LNG for more detail read?! Sorry, I haven t kept up with training material. The subject is so diverse, with all the pre-treatment steps which each can be a book in itself, I don t know of any single publication that covers the entire topic. GTI offers a good 1- week LNG fundamental course. Check their schedule. What's the current and expected future relationship between LNG supply and demand. In other words, is the industry effectively meeting the demand? Marketing is not my area of expertise and the market is very dynamic. I think supply is currently tight due to the higher demand by Japan from closing of their nuclear power plants. However, as plants under construction come online and Japan cut back demand, the market should be in balance.

3 Frank Egede R M One graphic showed for 1.7 bcfd in, you can get 1.2 bcf out as LNG if 6-8% of gas is used to fuel the plant, where is the remaining gas lost? Standard Cubic Feet of gas (cfd) is the industries way of account for well head fluids (gas & hydrocarbon liquids). It represents total moles of hydrocarbon which includes methane, ethane, propane, butanes, C5+, N2, H2S, CO2, etc. The shrinkage is due to fuel consumed, as well as the condensate and NGL products, and the impurities extracted. What is NGL? NGL is same as LPG in the US. It is the class of non-methane hydrocarbon products that can be a liquid at ambient temperature (but at elevated pressure). Those products are ethane, propane and butanes. The C5+ components are typically call condensate product (light oil). Methane cannot exist as a liquid at ambient temperature. Are there any interesting technical aspects regarding regasification at the other end or is it a very straightforward process compared to liquefaction? You are correct. The regasification process is very straightforward. Simplistically, LNG from the tank is pump up to gas pipeline pressure and then heat is added to vaporize the liquid and superheat the vaporized gas to desire temperature. Also what would you say is a typical efficiency for an LNG liquefaction plant e.g. the % energy of the exported energy stream equivalent to the liquefaction / storage process? Depending on ambient temperature, composition of feed gas and driver selection, typical BTU consumed ranges from 6-12%. Effiong Asuquo What's the fuel usage in the vaporization process? E.g. for liquefaction, usage is 6-8% Energy consumed by the regasification process depends on the source of energy. If the vaporizers use air or ambient water as the heat source, then energy consumed can be very low. If submerged combustion vaporizers are used, the energy consume is 1.5-2%. Considering that LNG is most economical when it involves gas transmission over 1500 miles, does it mean that construction of transcontinental gas pipelines are not really cost effective when compared with LNG? No. What I meant to say is that LNG is most economical for ocean transport of distance over 1,500 miles.

4 Dario Frigo Frank Egede Gunasekaran Palanivel But isn't the point that you can take an LGN tanker ANYWHERE and you're not subject to political factors, e.g. if a war breaks out around your pipeline? LNG is more flexible than pipeline as to delivery point(s) and incremental capacity. Those are part of the economic factors. Difference btw NGL and LNG? LNG is primarily liquefied methane. NGL (natural gas liquids) are those hydrocarbons (ethane, propane and butanes) which can exist as a liquid at ambient temperature, i.e. liquefied by elevated pressures. Since methane critical pressure (668 psia) is lower than it s vapor pressure at 100F (~5,000 psia), it can only be liquefied by refrigeration. Wonderful technical presentation Thanks What are the ""membranes"" they're now using for insulting / containment? The membrane is the thin layer (~5mm thick) of special stainless steel that is in direct contact with the cold LNG. The liquid head load is transferred to a carbon steel (Single Containment) or concrete (Double Containment) outer tank. In between the thin stainless steel layer is a system of foam, mastics, and plywood which insulate the outer tank from being exposed to cryogenic temperatures. The system is called a membrane containment system. This is in contrast to a 9% nickel steel tank which has very thick wall and is selfsupporting. Arshad Islam Some groups are now touting membranes as a form of insulation, especially in LNG tankers I m curious how they work. The membrane is a thin layer (~5mm thick) of special stainless steel that is in direct contact with the cold LNG. The liquid head load is transferred to the ship hull which is made of carbon steel (non-cryogenic material). In between the thin stainless steel layer and the hull is a system of foam, mastics, and plywood which insulate the ship hull from being exposed to cryogenic temperatures. The system is called a membrane containment system. This is in contrast to the Moss type of LNG tankers which have spherical tanks made of 9% nickel steel. The tanks have very thick wall and is self-supporting. What is basic difference between LNG and NGL? LNG is primarily liquefied methane. NGL (natural gas liquids) are those hydrocarbons (ethane, propane and butanes) which can exist as a liquid at ambient temperature, i.e. liquefied by elevated pressures. Since methane critical pressure (668 psia) is lower than it s vapor pressure at 100F (~5,000 psia), it can only be liquefied by refrigeration.

5 Ibrahim Muritala Karen Balch Justin Hunter) What are the challenges in LNG process chain that requires the new methodology or optimization that are appropriate for R&D especially in our universities? The LNG process is simple thermodynamics. I don t see any research opportunity there. The optimization is matching the available hardware (compressors and drivers) to the refrigeration stages (single component or mixed refrigerant). Some companies are developing small scale LNG systems for the recovery of associated gas that cannot be transported to a gas gathering system. Do you believe that wellhead-deployed LNG is a viable technology for reducing gas flaring in regions like North Dakota? Small scale LNG production can be economic if the LNG does not have to be transported very far and that it is sold and used as motor fuel. Some companies are evaluating the business opportunity in North America of liquefying pipeline gas at or near truck stops to fuel long-haul trucks. The economics value is the price differential between pipeline gas and diesel on a BTU basis. At $3.50 per gallon, diesel is selling at the equivalent of $29 per million BTU. What is the energy usage for a 250,000 GPD LNG plant? Depending on ambient temperature, composition of feed gas and driver selection, fuel consumption of a typical base-load (>2 Mtpd) plant will be in the range of 6-12%. A small plant that you envisioned will be on the upper end or even exceed that range due to the need for simplicity and lack of economy of scale.