TECHNICAL AND ECONOMICAL CONSIDERATIONS

FOR SMALL SCALE LNG IMPORT TERMINAL

6th Annual LNG Tech Global Summit 2011

3rd – 5th October 2011

Rotterdam, Netherlands

Jérémie ESQUIER
Commercial Director
 AGENDA

• SOFREGAZ OVERVIEW

• REFERENCES IN CONVENTIONAL LNG REGAS TERMINAL

• SOLUTIONS FOR SMALL SCALE LNG REGAS PROJECTS

6th Annual LNG Tech Global Summit 2011 2

 AGENDA

• SOFREGAZ OVERVIEW

• REFERENCES IN CONVENTIONAL LNG REGAS TERMINAL

• SOLUTIONS FOR SMALL SCALE LNG REGAS PROJECTS

6th Annual LNG Tech Global Summit 2011 3

 SOFREGAZ GENERAL OVERVIEW

■ A fifty-year experienced Engineering and Contracting Company specialised in

natural gas

■ Activities: from Consulting to Lump Sum Turn Key projects

■ Organisation based on 150 multidisciplinary employees

90% University and Technical College Graduates

■ Worldwide experience with more than 850 projects since its creation

■ Operations fully integrated inside Maire-Tecnimont Group

■ Main activity: Engineering services and participation in EPC projects

LNG: small liquefaction plants, LNG receiving terminals

Gas processing plants

Gas transmission, compression stations

■ Projects size & Commercial strategy:

E & EP projects within 100 M USD: Stand alone

EPC projects in partnership / integration with Maire-Tecnimont group

6th Annual LNG Tech Global Summit 2011 4

 ACTIVITIES AND SERVICES

■ Feasibility studies

■ Basic & Detailed Engineering

■ Project Management Consulting

■ Procurement / sourcing

■ Construction Supervision

■ Commissioning & start-up

LNG RECEIVING TERMINAL BILBAO SPAIN

6th Annual LNG Tech Global Summit 2011 5

 SHARE HOLDER

Engineering & E&C

Process Licensing and Renewable
Main Infrastructure
Engineering IP Group Center Energy
Contracting and Civil Eng.

Maire-Tecnimont Group:
- Revenues 2010: 2,536 M€
- Backlog 31/12/10: 5,359 M€

6th Annual LNG Tech Global Summit 2011 6

 MAIRE TECNIMONT INTERNATIONAL PRESENCE

About 5,200 employees, half of whom are employed outside Italy

Presence in more than 30 countries with over 50 operating companies
Italian headquarters: Rome, Milan

MANPOWER*
ITALY 2,598
EUROPE 397
ASIA 1,967

SOUTH
AMERICA 219

TOTAL 5,181

* Figures as of 31 March 2011

Presence of Maire Tecnimont Group

6th Annual LNG Tech Global Summit 2011 7

 ALL THROUGH THE “GAS CHAIN”

LNG RECEIVING TERMINAL

Production, treatment HAZIRA INDIA

LNG and LPG

Transmission systems - Pumping and

compression
GAS TREATMENT
WAFA LIBYA

COMPRESSION STATION
S3-S6 IRAN

6th Annual LNG Tech Global Summit 2011 8

 SOFREGAZ PROCESS AND KNOW-HOW

PRODUCTION AND TREATMENT (gas and oil fields)

- Oil/gas gathering & separation
- Dew point adjustment
- Sweetening
- Dehydration
- LPG extraction
- Crude oil stabilisation
- Gas-lift
- Gas re-injection

Some references:
- Dalan natural gas treatment plant (Iran)
- Mesdar natural gas reinjection facility (Algeria)
- R4-R5 natural gas boosting stations - phases II and III (Algeria)
- Wafa gas treatment facilities (Libya)
- FEED for the Kharg Island NGL recovery plant (Iran)

6th Annual LNG Tech Global Summit 2011 9

 EXAMPLE OF GAS TREATMENT PROJECT

Capacity: 4.44 BSCM/year

sales gas
EPC and technical assistance,
WAFA GAS CONDENSATE TREATMENT PLANT - AGIP GAS BV - commissioning and start-up
LIBYA contract.

6th Annual LNG Tech Global Summit 2011 10

 SOFREGAZ PROCESS AND KNOW-HOW

LIQUEFIED NATURAL GAS (LNG)

- Peak shaving plants

- LNG production units
- Receiving and storage facilities

Some references:
- Revithoussa LNG receiving facilities (Greece)
- Shanghai PuDong LNG peak shaving facilities (China)
- Bilbao LNG terminal (Spain)
- Guangdong LNG Terminal (China)
- Hazira LNG Terminal (India)
- Expansion of Revithoussa LNG receiving facilities (Greece)
- Fos Cavaou LNG Terminal (France)
- FEEDs for Dunkerque (France) and Panigaglia (Italy) LNG terminals

6th Annual LNG Tech Global Summit 2011 11

EXAMPLE OF LNG PROJECT

DUNKERQUE LNG RECEIVING TERMINAL - DUNKERQUE
LNG FRANCE
Capacity: 8  16 BCM/Y
Storage tanks: 3 x 190,000 m3
Jetty for vessels from 75,000
to 267,000 m3
FEED, Preparation of EPC
tender documents, Evaluation
of EPC bids, Preparation of EPC
contracts

12
 SOFREGAZ PROCESS AND KNOW-HOW

PIPELINE TRANSMISSION & COMPRESSION

- Gas and liquid pipelines

- Pumping and compressor stations
- Telecommunication and SCADA systems

Some references:
- Beattock natural gas compressor station (United Kingdom)
- Brighouse Bay natural gas compressor station (United Kingdom)
- S3 S6 natural gas compressor stations (Iran)
- FEED Turkey - Greece natural gas pipeline
- FEED GALSI: Algeria-Sardinia-Italy natural gas pipeline stations

6th Annual LNG Tech Global Summit 2011 13

 EXAMPLE OF GAS TRANSMISSION SYSTEM PROJECT

GAS PIPELINE ALGERIA-SARDINIA-ITALY - GALSI

Capacity: 8 BCM/Y
Length: onshore 281 km; subsea: 561 km
Pre-FEED, FEED & preparation of tender
documents for :

Compression stations

Pressure reduction & metering stations

SCADA & Telecommunications

6th Annual LNG Tech Global Summit 2011 14

 QHSE

■ QUALITY is the core of our strategy.

We developed a global approach of the Quality, from the consulting
to the delivery of the project.

■ SOFREGAZ considers HEALTH protection of the employees and the

SAFETY aspects of the installations designed, as well as the
protection of the ENVIRONMENT, an integrated part of the business
objective.

■ SOFREGAZ is certified ISO 9001, ISO 14001 and OHSAS 18001

6th Annual LNG Tech Global Summit 2011 15

 AGENDA

• SOFREGAZ OVERVIEW

• REFERENCES IN CONVENTIONAL LNG REGAS TERMINAL

• SOLUTIONS FOR SMALL SCALE LNG REGAS PROJECTS

6th Annual LNG Tech Global Summit 2011 16

 LNG RECEIVING TERMINAL REFERENCES SINCE 2000

DUNKERQUE
France
FOS CAVAOU
CORSE France DALIAN
France
LE VERDON
France PANIGAGLIA QINGDAO
CANAPORT
Italy
Canada BILBAO
ADRIA
Spain TANGSHAN
Croatia
CACOUNA ZHEJIANG
Canada
PUERTO EL MUSEL
REVITHOUSSA
Spain JIANGSU
Greece
ARINAGA
IDKU SHANGHAI
Spain HAZIRA
PORT ESQUIVEL Egypt
India
Jamaica FUJIAN
PEPILLO SALCEDO BRINDISI
ROSIGNANO GUANGDONG
Dominican Republic Italy SINGAPORE
Italy
SUAPE Singapore
Brazil HAINAN

COEGA
South Africa

FEED (with PMC services)

Studies (Feasibility/Conceptual/Process) EPC Contracts

6th Annual LNG Tech Global Summit 2011 17

 COMPLETED EPC PROJECT: EXAMPLE #1

FOS CAVAOU LNG RECEIVING TERMINAL

Country: FRANCE
Client: GAZ DE FRANCE
Contractor: Integrated Joint Venture
TECNIMONT - SOFREGAZ (50%)/
SAIPEM (50%)
Contract value: ~500 M EUR
Capacity: 6.5 Mt/year
LNG Storage: 3 x 110,000 m3
(full containment)
Unloading Capacity: 12,000 m3/h
LNG Carrier Size: 160,000 m3
Jetty: 200 m existing to be upgraded
Schedule: 55 months
Start-up: First LNG unloaded November 2009

6th Annual LNG Tech Global Summit 2011 18

 COMPLETED EPC PROJECT: EXAMPLE #1

FOS CAVAOU LNG RECEIVING TERMINAL

6th Annual LNG Tech Global Summit 2011 19

 COMPLETED EPC PROJECT: EXAMPLE #2

EXTENSION OF REVITHOUSSA
LNG RECEIVING TERMINAL (GREECE)

Country: GREECE
Client: DEPA
Contractor: Consortium
SOFREGAZ (Leader)
+ ATHENA

Contract value: 40 M EUR

Capacity: Increase from 500 m3/h to 1,250 m3/h

Unloading Capacity: Increase from 3,500 m3/h to 7,250 m3/h
Schedule: 24 months
Start-up: 2008

6th Annual LNG Tech Global Summit 2011 20

 COMPLETED EPC PROJECT: EXAMPLE #3

GUANGDONG LNG RECEIVING TERMINAL (CHINA)

Country: CHINA
Client: BP + CNOOC & ALL
Contractor: Integrated Joint Venture SAIPEM Leader –
SN TECHNIGAZ + TECNIMONT + SOFREGAZ
Contract value: 240 M EUR
Capacity: 3.5 (expendable to 6) Mt/y
LNG Storage: 2 x 160,000 m3
(full containment)
Unloading Capacity: 12,000 m3/h
LNG Carrier Size: 145,000 m3
Jetty: 310 m
Schedule: 36 months
Start-up: 2006–2007 (3rd tank)

6th Annual LNG Tech Global Summit 2011 21

 COMPLETED EPC PROJECT: EXAMPLE #4

HAZIRA LNG RECEIVING TERMINAL (INDIA)

Country: INDIA
Client: SHELL
Contractor: Integrated Joint Venture SAIPEM SA –
SN TECHNIGAZ + TECNIMONT + TICB
+ SOFREGAZ
Contract value: 390 M EUR

Capacity: 2 Mt/y
LNG Storage: 2 x 160,000 m3
(full containment)
Unloading Capacity: 12,000 m3/h
LNG Carrier Size: 145,000 m3
Jetty: 1,300 m
Schedule: 38 months
Start-up: 2005

6th Annual LNG Tech Global Summit 2011 22

 COMPLETED EPC PROJECT: EXAMPLE #5

BILBAO LNG RECEIVING TERMINAL (SPAIN)

Country: SPAIN
Client: BBG (BP + IBERDROLA + REPSOL + EVE)
Contractor: Integrated Joint Venture SAIPEM SA –
SN TECHNIGAZ Leader (40%) + INITEC (33%)
+ SOFREGAZ (27%)
Contract value: 240 M EUR
Capacity: 2.7 Extended to 5 Mt/y
LNG Storage: 2 x 150,000 m3
(full containment)
Unloading Capacity: 12,000 m3/h
LNG Carrier Size: 135,000 m3
Jetty: Quay type
Schedule: 38 months
Start-up: 2003

6th Annual LNG Tech Global Summit 2011 23

 COMPLETED EPC PROJECT: EXAMPLE #6

REVITHOUSSA LNG RECEIVING TERMINAL (GREECE)

Country: GREECE
Client: DEPA
Contractor: Consortium between an integrated Joint Venture
SOFREGAZ Leader 50% + SAIPEM SA 50%
and TECHNICAL UNION for construction
Contract value: 180 M EUR
Capacity: 1 Mt/y

LNG Storage: by others

Unloading Capacity: 12,000 m3/h
LNG Carrier Size: 125,000 m3
Jetty: Quay type
Schedule: 34 months
Start-up: 2000

6th Annual LNG Tech Global Summit 2011 24

 COMPLETED FEED: EXAMPLE #1

■ FEED for the DUNKERQUE LNG TERMINAL

• Location: France
• Client: DUNKERQUE LNG (EDF)
• Period: 2008-2010
• Description:
• FEED
• Technical assistance for preparation of permitting documents
• Cost estimate and implementation schedule
• Preparation of EPC tenders docs
• Evaluation of EPC bids & preparation
of EPC contracts

•Design data:
• Capacity: 10 BCM/y (Phase 1)
• Tanks : 2 x 190,000 m3 (+1 in future)
• Vaporization: ORVs supplied
with power plant cooling water
transported through a tunnel
• Send-out: 1.4 million m3/h

6th Annual LNG Tech Global Summit 2011 25

 COMPLETED FEED: EXAMPLE #2

■ FEED for the HAINAN LNG TERMINAL

• Location: China
• Client: HAINAN LNG (Subsidiary of CNOOC)
• Period: 2009-2010
• Description:
• Conceptual design
• FEED
• Budget cost estimate
• Implementation schedule
• Preparation of EPC tender documents (Technical)

• Design data (new):

• Capacity: Initial 2 Mt/y  3 Mt/y  Final 7.2 Mt/y
• Tanks : Initial 2 x 160,000 m3  up to 9 tanks
• Vaporization: ORVs – Sea water
• Send-out: 375,000 m3/h  560,000 m3/h

6th Annual LNG Tech Global Summit 2011 26

 SOMME OTHER PROJECTS...

■ FEED for the new PANIGAGLIA LNG TERMINAL

• Location: Italy
• Client: GNL ITALIA (ENI Group)
• Period: 2009
• Description:
• Study of the dismantling of the existing terminal
• Design of the revamping of existing trestle and jetty head
• FEED of the new LNG Terminal

• Design data (new):

• Capacity: 8 BCM/y
• Tanks : 2 x 110,000 m3 – partially buried
• Vaporization: 5 SCV + 1 STV
• Send-out: 1 million m3/h

■ FEED for the installation of a 4th tank

in the Guangdong LNG Terminal
• Location: China
• Client: GUANGDONG DAPENG LNG
• Period: 2008
• Description:
• Technical Feasibility and Impact Study
• Front End Engineering Design

6th Annual LNG Tech Global Summit 2011 27

 AGENDA

• SOFREGAZ OVERVIEW

• REFERENCES IN CONVENTIONAL LNG REGAS TERMINAL

• SOLUTIONS FOR SMALL SCALE LNG REGAS PROJECTS

6th Annual LNG Tech Global Summit 2011 28

 WHICH MARKET FOR SMALL SCALE LNG REGAS?

South East Asia

Installation of new gas-fired power

plants (simple-cycle or combined-cycle
power plants) in remote area (mainly
islands) or revamping of iddle heavy fuel
fired plants to be fed with LNG

Three main geographical areas are

concerned:

Caribbean Sea Mediterranean Sea

6th Annual LNG Tech Global Summit 2011 29

 TYPICAL CHARACTERISTICS OF SMALL SCALE REGAS

Necessity to combine a power station and natural gas supply (heavy

fuel can be kept as back-up solution)

No gas network availability  Gas supplied through LNG and regasified

on site.

Power generation in between 100 MWe and 500 MWe

Involve LNG capacities in the range of 0.1 to 0.5 MMTPA

6th Annual LNG Tech Global Summit 2011 30

 AVAILABLE SOLUTIONS FOR SMALL SCALE REGAS

■ Various options can be studied all presenting drawbacks and advantages

 The main common options are as follows:

Onshore storage and regasification, including port and jetty for LNG Carriers, with
unloading arms and all necessary facilities for operation

Offshore storage in a vessel, including port and jetty with all necessary facilities;
regasification on-shore

Offshore storage and regasification in a FSRU, including port and jetty with all
necessary facilities

Offshore storage and regasification in an FSRU connected to the shore via

monobuoy

Shuttle and Regas Vessel (SRV) connected to the shore via monobuoy

All of these solutions are industrially proven for larger capacities

Preferred option strongly depends on the site conditions/market
opportunities
6th Annual LNG Tech Global Summit 2011 31
 TENTATIVE COMPARISON OF AVAILABLE SOLUTIONS

Onshore FSU & regas FSRU with FSRU with

SRV
Terminal onshore Jetty pipeline

Permitting

Modularity

Schedule

Life Extend

Downtime

Employment

Infrastructure
necessity

Capacity

Safety

(Cost)

Elements mitigated by the construction of a Power Plant

6th Annual LNG Tech Global Summit 2011 32
 POWER PLANT & LNG TERMINAL HEAT INTEGRATION

■ TECNIMONT has been responsible for the design and construction of

>230 power plant projects with a total installed capacity exceeding 20,000
MW (including simple-cycle and combined-cycle gas-fired power plants).

■ During conceptual design phase the following synergies between the CCPP and
the LNG terminal are analyzed in order to define the integration level:

Heat recovery: definition of the cooling/vaporization system in order to use low

temperature heat available at the steam turbine condenser for LNG vaporization

Integration/optimization of utility production systems: definition of overall utility
requirements and definition of common utility production systems

Buildings integration/optimization: definition of overall functional requirements for
building, identification of grouping strategy, definition of overall building list

Others

■ Achievable level of integration depends on the number of LNG terminal facility

located on shore. Comparison between different LNG terminal configuration
will consider the benefit deriving from its integration with CCPP.

6th Annual LNG Tech Global Summit 2011 33

 NECESSITY OF A DEDICATED STUDY

■ Necessity to perform a dedicated study based on the project environment &

constraints

■ SOFREGAZ propose to perform such kind of conceptual study in ~12 weeks:

Phase I: Analysis of the site data basic factors (including meteocean conditions) to
define the most suitable location for the terminal and discard immediately one or
several options

Phase II: Basic definition of various concepts

Phase III: Comparison and analysis of the above defined concepts

...Development of the selected concept.

■ Such study can be developed with any kind of options, even with a full
offshore installation : floating storage associated with a floating power plant
(such concept has already been studied by SOFREGAZ)

6th Annual LNG Tech Global Summit 2011 34

 CONCLUSION

■ As of today, there is an incentive to use LNG instead of Fuel Oil in

small/medium size Power Plants located in remote area (mainly for
environmental and economical considerations)

■ SOFREGAZ has strong experience in conventional LNG Regas Terminal with

>35 executed projects since 2000 (either at feasibility/conceptual, FEED or
EPC stage)

■ SOFREGAZ has developed specific expertise in Small Scale LNG Regas

solutions.

■ Using TECNIMONT Group expertise in Power Gen, SOFREGAZ proposes to

select the optimized solution:

 For the small scale LNG Regas Terminal configuration

 For the Heat Integration between the LNG Regas & the PP

6th Annual LNG Tech Global Summit 2011 35

TECHNICAL AND ECONOMICAL CONSIDERATIONS
FOR SMALL SCALE LNG IMPORT TERMINAL

6th Annual LNG Tech Global Summit 2011

3rd – 5th October 2011

Rotterdam, Netherlands

Jérémie ESQUIER
Commercial Director