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Tony Regan, Tri-Zen International, Singapore: Global overview of the FLNG market
 

Tony Regan, Tri-Zen International, Singapore: Global overview of the FLNG market

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Tony Regan, Principle Consultant, Tri-Zen International, Singapore delivered this presentation at the 2013 FLNG Forum in Perth. The two day conference brings attendees key insights into the technology ...

Tony Regan, Principle Consultant, Tri-Zen International, Singapore delivered this presentation at the 2013 FLNG Forum in Perth. The two day conference brings attendees key insights into the technology and concepts that will unlock Australia’s stranded gas reserves. This event brings together case studies, keynote and technical presentations from the experts at the forefront of the Floating LNG projects. For more information about the forum, please visit the event website: http://www.informa.com.au/flngforum2013

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    Tony Regan, Tri-Zen International, Singapore: Global overview of the FLNG market Tony Regan, Tri-Zen International, Singapore: Global overview of the FLNG market Presentation Transcript

    • Global overview of the FLNG market Tony Regan, Principal Consultant Tri-Zen International, Singapore The FLNG Forum, Perth 3-4 December 2013 www.tri-zen.com
    • Introduction to TRI-ZEN  TRI-ZEN is a consulting business focused on energy and utilities  We cover upstream & downstream, technical, commercial & financial  We offer a wide range of services:  Consulting  Strategy  Business Development  Project Management  Organizational Development  Alliances  Due diligence for M&A, project finance and IPO’s  Lead consultants located across Asia with a global extended network  Clients include the leading companies in energy and professional services based in Asia, Europe & North America www.tri-zen.com 2
    • ThyssenKrupp Uhde Energy & Power  Uhde Energy & Power, Oil and Gas Centre of Excellence based in UK, supporting regional Design centres including Uhde Australia.  A technical management consultancy providing multi-discipline technical support for major capital developments. The company has a significant track record of experience in the oil & gas, LNG and power sectors worldwide providing high quality project services to asset owners, operators and contractors in the oil, gas, LNG and renewables industries.  Core engineering design services focussed around process, facilities, utilities and structures with specialist services for due diligence and peer review, feasibility study, option appraisal, conceptual design and project management.  120 professional engineers, 20 LNG professionals Experience gained from:     Over 30 LNG import terminals Over 15 LNG liquefaction projects 13 Floating terminal projects (both FPSO’s and FSRU’s) 11 floating liquefaction projects (FLNG) ThyssenKrupp Uhde Energy & Power
    • The Global LNG Market 2013 Norway Alaska R/P = 265 R/P = 41 Russia R/P = 98 Algeria Libya Egypt Trinidad Qatar Abu Dhabi Oman Nigeria Yemen Malaysia Eq. Guinea Indonesia Brunei PNG Peru Angola Australia LNG Under construction Global liquefaction capacity (nominal) of 287 million tonnes www.tri-zen.com 4
    • The Global LNG Market 2013 Norway R/P = 265 R/P = 41 Russia R/P = 98 Algeria Libya Egypt Trinidad Qatar Abu Dhabi Oman Nigeria Yemen Malaysia Eq. Guinea Indonesia Brunei PNG Peru Angola Australia LNG Under construction Nominal liquefaction capacity Qatar the largest producer with 77 million tonnes capacity in two plants www.tri-zen.com 5
    • LNG Imports Million tonnes 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 N. America 2005 2006 Cent & S. America 2007 Europe 2008 Asia 2009 2010 2011 2012 Middle East LNG demand grew by a CAGR of 8% between 2001 and 2010 – three times the rate of growth for gas www.tri-zen.com 6
    • Liquefaction capacity under construction Project Arzew PNG LNG Pacific Rubialas FLNG Qld Curtis Donggi-Senoro Australia Pacific T1-T2 Gladstone LNG Sarawak FLNG MLNG Train 9 Gorgon T1-T3 Sabine Pass T1-2 Sabine Pass T3-4 Prelude Wheatstone Ichthys Total Liquefaction capacity under construction Mill tonnes Start Up Algeria 4.7 2014 Papua New Guinea 6.3 2014 Colombia 0.5 2014 Australia 8.5 2014 Indonesia 2 2014 Australia 9 2014/16 Australia 7.8 2015 Malaysia 1.2 2015 Malaysia 3.6 2015 Australia 15 2015/16 USA 9 2015-17 USA 9 Australia 3.6 2016 Australia 8.6 2016 Australia 8.4 2016 97.2 Operator Sonatrach ExxomMobil Exmar BG Mitsubishi Origin/CP Santos Petronas Petronas Chevron Cheniere Energy Cheniere Energy Shell Chevron INPEX www.tri-zen.com 7
    • The Global LNG Market 2017 Norway R/P = 265 R/P = 41 Russia R/P = 98 Algeria Libya Egypt Trinidad Qatar Abu Dhabi Oman Nigeria Yemen Malaysia Eq. Guinea Indonesia Brunei PNG Peru Angola Australia LNG Under construction Nominal liquefaction capacity Australia overtakes Qatar as largest LNG producer www.tri-zen.com 8
    • LNG Demand N. America S. America Europe Asia Middle East Total Mill tonnes China India Indonesia Japan S Korea Taiwan Thailand Total Q1 11 4.1 1.6 18.6 38.1 0.2 62.6 Q2 11 3.2 2.1 18.2 34.9 1.6 60 Q3 11 2.8 2.6 14.8 39.3 1.4 60.9 Q4 11 2.9 1.8 14.9 41.2 0.4 61.2 Q1 11 2.3 2.6 Q2 11 3.3 3.1 Q3 11 3.4 3.1 Q4 11 3.7 3.5 19.6 11.2 2.5 18.2 7.2 3.1 0.2 35.1 20.7 7.5 3.6 0.3 38.7 20.9 10.1 2.9 0.1 41.2 38.2 LNG Imports Q1 12 2.6 1.8 14.4 45.1 0.1 63.9 Q2 12 1.9 3.2 12.4 38.3 1.3 57.1 Q3 12 2.2 3.4 12.6 41.1 1.5 60.8 Q4 12 1.9 3.1 12.1 42 0.6 59.7 Asian LNG Imports Q1 12 Q2 12 3.3 3.4 3.6 3.2 0.12 24 20.6 11.1 7.4 2.9 3.4 0.3 0.14 45.2 38.3 Q3 12 3.8 3.6 0.3 21.6 7.9 3.6 0.3 41.1 Q4 12 4.2 3.5 0.3 21 9.8 2.9 0.2 41.9 Q1 13 2.1 3 9.5 47.7 0 62.4 Q1 13 4.5 3.2 0.3 24.2 12.2 2.9 0.4 47.7 Q2 13 2.2 4 11 40.3 1.1 58.5 Q2 13 3.7 3.5 0 19.9 9.2 3.4 0.4 40.2 Q3-13E 2.1 4.1 9.1 41.7 1 58 Q3 13 4.9 3.2 0 21.5 8.1 3.7 0.4 41.8 www.tri-zen.com 9
    • Global LNG Demand Forecast LNG Demand Forecast Mill tonnes 500 450 400 350 300 250 200 150 100 50 0 North America Central Amer/Caribb South America Europe Asia Middle East www.tri-zen.com 10
    • Reality check  Global liquefaction capacity, October 2013 291 million tonnes  Liquefaction capacity under construction 97 million tonnes  Existing plus under construction 388 million tonnes  LNG demand 2012  Estimated demand in 2020  Shortfall in liquefaction capacity 242 million tonnes 450 million tonnes 112 million tonnes*  Need another 10-16 new projects to come on stream by 2020! *515 million tonnes of liquefaction capacity needed to meet demand of 464 million tonnes. Assumes liquefaction plants run at 90% capacity. www.tri-zen.com
    • Projects Planning to take Final Investment Decision in 2013 Project Fishermans Ldg Timor Sea Scarborough Arrow LNG Browse Gorgon T4 BC LNG Export Kitimat LNG Abadi Eq. Guinea T2 Tannguh T3 Tamar FLNG Sabah FLNG Mocambique Brass Vladivostok Yamal Freeport LNG Sabine Pass T3/4 Lavaca Bay TX Country Australia Australia Australia Australia Australia Australia Canada Canada Indonesia Eq. Guinea Indonesia Israel Malaysia Mocambique Nigeria Russia Russia USA USA USA Projects planning to take Final Investent Decision (FID) in 2013 Mill tn FID Start up Shareholders 3.0 2013 2014 LNG Ltd HQCEC 2.0 2012 2016 PTT 6.0 2013 2016 BHP, ExxonMobil 8.0 2013 2017 Shell, PetroChina 15.0 2013 2018 Woodside, BP, Shell, PetroChina, MIMI 5.2 2013 2017 Chevron, Shell, ExxonMobil, Osaka Gas, Tokyo Gas, Chubu Elec 1.8 2012 2014 LNG Partners, Hasla First Nation 10.0 2013 2017 Apache, Chevron 2.5 2013 2018 Inpex, Shell 4.4 2012 2016 Marathon,Sonagas, Mitsui, Marubeni, Union Fenosa, GALP 3.8 2013 2018 BP, MI Bera u, CNOOC, Ni ppon Oi l , KG Bera u, LNG Ja pa n, Ta l i s ma n 3.0 2013 2015 Noble Energy, DorGas, Isramco, Pangea & Delek 1.5 2013 2016 Petronas 20.0 2013 2018 Anadarko, ENI 10.0 2013 2017 NNPC, ENI, ConocoPhillips, Total 10.0 2013 2017 Gazprom, Itochu, Japex, Inpex, Marubeni 15.0 2012 2016 Novatek, Total 13.2 2012 2017 Freeport LNG, Macquarie 9.0 2013 2017 Cheniere 3.0 2016 Excelerate (FLSO) 2013 146.4 Very slow progress. Only one of these projects (Sabine Pass Train 3 & 4) has actually taken FID so far this year www.tri-zen.com 12
    • Increased project costs US$/tonne capacity 3500 Icthys 3000 Pluto T1 Pluto T2 Gorgon Browse Wheatstone 2500 QCCLNG 2000 GLNG Aus Pacific PNG LNG NWS T4 NWS T5 1500 1000 Darwin T1 500 0 2002 Start up date 2004 2006 2008 2010 2012 2014 2016 2018 2020 www.tri-zen.com 13
    • Projects under construction Leader (Constructor) Shell (Samsung) Topsides Liquefaction Technip Shell DMR LNG mtpa 3.6 Hull Containment Barge Membrane Petronas (DSME) Technip/Linde MR 1.2 Barge Membrane Exmar (Wison) Black & Veatch SMR 0.5 Barge Storage m3 220,000 + 90,000 LPG + 126,000 Condensate 16,100 + floating storage Project status FEED completed 2009 Sanctioned May 2011 Start Up 2017 FEED completed 2012 Sanctioned 2012 Start up Q4 2015 Sanctioned 2012 Start up Q1 2015 Location Project Australia Prelude Malaysia Sarawak Colombia Pacific Rubiales www.tri-zen.com 14
    • Shell - Prelude  15 years of research  1.6 million man hours working on the engineering challenges  Front End Engineering & Design awarded Samsung-Technip in July 2009  Final Investment Decision May 2011  Built at Samsung Heavy Industries’s Geoje shipyard in South Korea  Liquefaction – Shell DMR  Enters service 2016 Shell has entered into a Master Service Agreement with Technip and Samsung for the design, construction and installation of multiple floating liquefied natural gas facilities over a period of up to fifteen years www.tri-zen.com 15
    • FLNG - Prelude  Designed to be on site for 25 years  To be located in the Browse Basin 200 km off Western Australia  Will tap into 3 Tcf gas reserves in Prelude, Concerto & Libra fields  5.3 mill tonnes of liquids producing:  3.6 mtpa of LNG  1.3 mtpa of condensate  0.4 mtpa of LPG Prelude: Shell 72.5% INPEX 17.5% KOGAS 10%  Subsea equipment – FMC, Technologies, Technip  Turret - SBM Offshore  Controls – Emerson  Compressors – GE  Heat exchanger – Air Products 488 m x 74 m – Largest Floating Structure to Date, 600,000t Topsides 16 www.tri-zen.com
    • Petronas – FLNG 1 Petronas FLNG 1: Petronas 100% Sarawak  To be located 180 km off Bintulu  Gas from Kanowit field  LNG capacity 1.2 mtpa  FEED Completed Feb 2012 by Technip/Daewoo  Sanctioned March 2012  Start up planned Q4 2015  Construction – DSME, Okpo Korea  External Turret Moored  Liquefaction – Mixed Refrigerant  Membrane Storage  Tandem transfer www.tri-zen.com 17
    • Exmar – Pacific Rubiales Pacific Rubiales: Pacific Rubiales Energy Corp 100% FLRSU:  Floating Liquefaction Regasification & Storage Unit (FLRSU)  Offshore Columbia (Caribbean)  Gas from La Creciente Field (onshore)  LNG 0.5 mtpa (70 MMSCFD)  LNG Storage 14,000 m3 Type C tank plus 140,000 m3 floating storage  Liquefaction – SMR - Black & Veatch PRICO  EPCIC – Wison Offshore, Shanghai  Tolling basis for 15 years  Planned start 2014  LNG Supply to Caribbean Islands Exmar 100% www.tri-zen.com 18
    • FLNG Projects Petronas FLNG, 1.2 mtpa Petronas FLNG 1.5 mtpa INDONESIA PNG Greater Sunrise, 3.5 mtpa Abadi, 2.5 mtpa TIMOR LESTE PTT Cash Maple, 2 mtpa Others: Browse, 12 mtpa Iraq, Shell, Mitsubishi 2 mtpa Shell/Prelude, 3.5 mtpa Israel, Noble, Delek, DSME Colombia, Exmar 0.5 mtpa USA , Excelerate 3 mtpa, Main Pass 24 mtpa FLNG Evans Shoal, Bonaparte, 2 mtpa Hoegh/DSME, 3 mtpa Echuca Shoals, 1.5 mtpa Scarborough, 6 mtpa Existing Firm AUSTRALIA Proposed Early proposed projects were off West Africa but focus switched to Australia Now going global – Malaysia, Indonesia, Iraq, Israel, Colombia and USA www.tri-zen.com 19
    • Proposed FLNG projects Proposed Country Australia Australia Australia Australia Canada Indonesia Israel Malaysia USA USA Project MTPA Greater Sunrise 4 Cash Maple 2 Bonaparte 2 Scarborough/Pilbara 6 BC FLNG - Douglas Channel 0.7 Abadi 2.5 Tamar 3 FLNG2 - Sabah LNG 1.5 Port Lavaca 4 G of M FLNG 1 26.7 FID 2013 2015 2014 2015 2013 2013 2013 2014 Start up 2020 2016 2018 2020 2015 2018 2018 2016 2018 2017 Partners Woodside, Shell, ConocoPhillips, Osaka Gas PTT GDF Suez, Santos ExxonMobil, BHP Haisla Nation and Douglas Channel Services Inpex, Shell Noble Energy, DorGas, Isramco, Pangea, Delek, Avner Petronas Excelerate Energy, RWE EDF Trading, Exmar www.tri-zen.com 20
    • Status FEED/Pre FEED stage Eight projects at the Pre-FEED/FEED stage Country Project FEED complete USA FEED in progress Canada Indonesia Malaysia Pre FEED complete Australia Pre FEED in progress Australia Israel Confidential MTPA FID Start Up 3 2013 2018 Excel era te, RWE 0.7 2.5 1.5 2013 2013 2015 2018 2016 Ha i s l a Na ti on a nd Dougl a s Cha nnel Ga s Servi ces Inpex, Shel l Petrona s Cash Maple 2 2013 2016 PTT Bonaparte Tamar 2 3 2014 2013 2018 2015 GdF Suez Sa ntos Nobl e Energy, DorGa s , Is ra mco, Pa ngea & Del ek Lavaca Bay BC LNG Export Co-Op Abadi Sabah LNG Sponsors www.tri-zen.com 21
    • Excelerate - USGC         Floating Liquefaction Storage Offloading vessel (FLSO™) “Can accommodate a wide range of gas compositions at its inlet making it well suited for virtually any application near shore or offshore” Confidential Excelerate Energy’s FLSO Lavaca Bay near Galveston, Texas Capacity 3 mtpa LNG LNG storage 250,000 m³ Fully integrated gas processing plant. Length 338 meters Breadth of 62 meters. FEED is in an advanced phase and Excelerate expect to complete it by end 2012  Commissioning – 2017 (44 months from final investment decision) www.tri-zen.com 22
    • INPEX - Abadi       Abadi: INPEX 60% Shell 30% Energi Mega Persada 10% Abadi field, Masela block, Indonesia Pre FEED completed FEED award expected Q4 2012 FID 2014 Start up 2017/18 LNG 2.5 mtpa  Dual FEED proposed:  Chiyoda, Saipem, Hyundai, SBM Offshore  JGC, Technip, Samsung www.tri-zen.com 23
    • Petronas - Sabah        Unit 2 - Sabah 1.5 MTPA 2 FEEDs awarded, complete mid 2013 JGC/Samsung MITC (MODEC/IHI/Toyo/CB&I) Sanction planned late 2013 Start up planned Q4, 2016 Picture courtesy of Technip Confidential www.tri-zen.com
    • PTT - Cash/Maple Cash/Maple: PTT Confidential •Timor Sea, Australia •Gas supply - Montara, Cash, Maple •Pre FEED 2011 •FEED ? •FID ? •LNG 2.5 mtpa •25,000 m3 NGL •25,000 m3 LPG •Hull Length 320 m, width 60 m •SPB Tanks SS •Liquefaction - SMR (LiMuM) •CO2 up to 10% mol www.tri-zen.com 25
    • GdF Suez – Bonaparte LNG        Bonaparte LNG off western Australia Gas from Tern, Petrel & Frigate fields Pre FEED by Doris & KBR FEED expected 2013 FID 2014 Start up 2018 LNG production 2 mtpa Bonaparte LNG GdF Suez 60% Santos 40% www.tri-zen.com 26
    • Höegh LNG - Tamar King LNG:           Tamar & Dalit fields off Israel 3.5 mtpa LNG Produces LNG, LPG and NGL Storage 190,000 m3 LNG Membrane Tanks Lummus Niche (N2/CH4) Direct GT driven compressors Pre Feed 2012 (KBR) EPCIC – DSME Construction - DSME Tamar partners tbc Höegh LNG tbc DSME E&R tbc www.tri-zen.com 27
    • Unconventional FLNG  SBM & Golar LNG;  Considering conversions – expected to be 6-12 months shorter schedule than new build;  0.5- 2.0 mtpa LNG  Both smaller scale - probably focused towards smaller developers;  Golar – FEED being done by Keppel  3 Possible Vessel Conversions;  Contract Value of $600m Quoted  SBM - Generic pre-FEED complete ; www.tri-zen.com 28
    • Potential FLNG projects Potential Australia Australia Australia Cameroun Gabon Iraq Mauritanea Mocambique Namibia Papua New Guinea Tanzania USA USA USA USA USA Confidential Browse Evans Shoal Echuca Shoal Gulf of Guinea Basrah Banda NW & West Rovuma Basin Kudu Ph 2 PNG FLNG Block 1 South Texas LNG Main Pass Waller Point Port Arthur CE FLNG 12 2014 2018 1.5 3 2 1.5 3 8 24 1.25 3 1.5 60.8 2015 2018 2017 2020 2016 Woodside, Shell, PetroChina, MIMI ENI, Shell Nexus Energy GDF Suez, SNH Shell Shell Mitsubishi Tullow Pangea LNG Tullow Hoegh, DSME, Petromin BG, Statoil Pangea LNG United Energy, Freeport-McMoRan Energy Waller Energy Sempra Energy Cambridge Energy Holdings www.tri-zen.com 29
    • Höegh LNG - PNG  PNG FLNG formed 2011 to monetise gas from Foreland Basin  1.6 – 2.0 mtpa LNG  Produces LNG, LPG and NGL  Storage 190,000 m3 LNG  Membrane Tanks  Lummus Niche (N2/CH4)  Direct GT driven compressors  Status: Generic FEED Complete PNG FLNG: Petromin 34% Höegh LNG 33% DSME E&R 33% www.tri-zen.com 30
    • Total FLNG         Total FLNG concept Liquefaction 1 to 3.8 mtpa Length 290-480 m Can treat raw gas up to 17% CO2 BoD completed for 2.5 mtpa Turret moored with header control Liquefaction – N2 Storage 245,000 m 3 membrane, two rows  Tandem offloading  All electric drive  Pre FEED undertaken 2011 www.tri-zen.com 31
    • Hyundai FLNG      Hyundai FLNG concept 2.5 mtpa Liquefaction Linde LIMUM SMR L 355m, B 70m, D 35 m Storage 193,800 m3 LNG (GTT Mark III Membrane, two row)  DNV Approval in Principle Nov 2011  Turret mooring  Side by side transfer LNG, tandem for condensate www.tri-zen.com 32
    • ConocoPhillips FLNG  Conceptual design  Hull Length = 400 m  Hull Width = 80 m  LNG 3 to 6 mtpa  Storage 350,000 m3 LNG  Membrane Tanks  Liquefaction CP Optimised Cascade  Technip undertaking conceptual study  FEED award by end 2013 Potential locations - ConocoPhillips is aiming at the Timor Sea discoveries of Calidita and Barossa in joint venture with SK Energy and the Greater Poseidon in the offshore Western Australia Browse basin. Confidential www.tri-zen.com 33
    • CAPEX & OPEX      CAPEX Metrics – care not all LNG-FPSOs are created equal! OPEX Production Cost $/MMBTU LNG Value Chain Options to Improve economics Background Graph courtesy of FlexLNG ThyssenKrupp Uhde Energy & Power
    • What will FLNG cost ThyssenKrupp Uhde Energy & Power Early capital cost estimates $ 600/tpa $ 1,200/tpa Recent indicative cost $ 1,000/tpa ± 30%  Significant variations depending on gas composition (high/low C3, C4, condensate) and CO2, N2 content  High liquids content considerably increases commercial attraction.  Shell’s 3.5 mtpa concept thought to attract bids at around $1,000/tpa.  Flex LNG indicating an estimate of $550-760/tpa for 2.0 mtpa liquefaction capacity (US$1.1 to 1.3 bn). OPEX indication US$110,000/day  CAPEX figures exclude field development costs. Cost figures still indicative until full design completed for specific location/resource. * Figures in US$ 35
    • Recent CAPEX estimates ThyssenKrupp Uhde Energy & Power  Recently completed front-end engineering and design (FEED) study estimates a cost of $540 per tonne per annum for Lavaca Bay project “An FLNG inclusive of mooring is achievable in a range of $550-700 per tonne” Excelerate Energy  “CAPEX = 1000 USD per ton per annum (tpa) installed capacity” Kanfa Aragon for 2 mtpa LNG  4 mtpa LNG - Benign Metocean Environment ~$750/tpa, Severe Metocean Environment ~$900/tpa. ATP Oil & Gas Cylindrical hull 36
    • Indicative FLNG CAPEX ThyssenKrupp Uhde Energy & Power Low Cost Scenario (1.7 MTPA, Lean Gas no LPG/Condensate Building Block Hull & Accommodation Turret Gas Reception Feed Gas C ompression Gas Treatment Gas Liquefaction LPG Stabilisation Power Generation Utility Systems Offloading Interconnecting Pipework Total C ontingency 30% Owner's C osts Total Production C APEX Depreciation (15 years) CAPEX Depreciation (15 years) $ million Metric 580 40 70 later 50 360 option 80 80 10 30 1300 765 $/TPA 390 130 1820 1071 $/TPA 1.7 MTPA 71 $/T 1.4 $/MMBTU
    • OPEX (Operating Cost) Components ThyssenKrupp Uhde Energy & Power  Fuel Gas (Feed Gas)  What cost rate? Free of charge, nominal, lost LNG sales  Manning/Crew  80 People  Tugs  Assume 3 x 80-90 t pull  Maintenance  Offshore?  Port?  Chemicals & Consumables  Possible Project Financing Costs  Interest & Insurance Exclude (Owner Dependent) Picture courtesy of SBMLinde
    • OPEX (Operating Cost) ThyssenKrupp Uhde Energy & Power Estimate 1.7 MTPA LNG Production Component Fuel Gas (15% Gas Feed) Manning (120 people) Maintenance (4% CAPEX) Tugs Base Support, Helicopters Miscellaneous Total Production Production Cost Production Cost $ million/year 17 $1.5/MMBTU 15 38 10 10 10 100 1.7 MTPA 59 $/ton 1.2 $/MMBTU Note: Excludes any project financing costs
    • Production Cost Summary ThyssenKrupp Uhde Energy & Power Lowest Cost Scenario 1.7 MTPA FLNG CAPEX Depreciation FLNG OPEX FLNG Production Cost $/MMBTU 1.4 1.2 2.6 Gas Feed Cost (Subsea) Shipping Cost Storage & Regas Cost 2.0 1.0 1.0 Total Cost 6.6
    • Overall Production Cost - Lowest Cost Scenario ThyssenKrupp Uhde Energy & Power $US/MMBtu (MCF) Production Cost* 10.6 (LNG Selling Price typically US$15-17/MMBtu ) 6.0 Storage & Regas (say 1.0) LNG Shipping (say 1.0) 4.0 FLNG (say 2.6) 2.0 Gas Feed Cost (say 6.0) *Costs exclude Interest and Insurance
    • FLNG Projects FLNG units Mill tonnes 25 20 15 10 5 0 2014 2015 2016 2017 Pacific Rubiales Petronas I Shell, Prelude Petronas II PTT Cash/Maple Noble/DSME, Israel Inpex/Shell, Abadi 2018 Excelerate, USA GdF Bonaparte Three under construction, another six hope to take FID shortly. Potentially almost 20 mill tonnes production from FLNG units by 2018 Confidential www.tri-zen.com 42
    • The way to go - FLNG Bontang, 23 mtpa Tangguh, 7.6 mtpa Donggi Senoro, 2 mtpa INDONESIA PNG Greater Sunrise, 4 mtpa Abadi, 2.5 mtpa TIMOR LESTE Cash Maple, 2 mtpa Browse 12 mtpa Prelude, 3.6 mtpa Ichthys, 8.4 mtpa Evans Shoal, Bonaparte, 2 mtpa Hoegh/Talisman, 2 mtpa PNG LNG, 6.3 mtpa Darwin, 3.7 mtpa Echuca Shoals, 1.5 mtpa Queensland Curtis, 8.5 mtpa Scarborough, 6-7 mtpa Gorgon, 15 mtpa NWS Train 1 - 5, 16.3 mtpa Wheatstone, 8.6 mtpa Pluto, 4.3 mtpa Gladstone, 7.8 mtpa Arrow Energy 8 mtpa AUSTRALIA Australia Pacific, 7 mtpa Fisherman’s Landing, 1.5 mtpa FLNG (shown in red) becoming the norm for the development of offshore production www.tri-zen.com
    • FLNG Projects R/P = 265 Canada R/P = 41 R/P = 98 USA Israel Iraq Colombia Malaysia Gabon Indonesia PNG Namibia FLNG Projects Mocambique Australia Firm Proposed www.tri-zen.com
    • We add value TRI-ZEN International Pte Ltd Ocean Financial Centre 40-00, 10 Collyer Quay, Singapore 049315 Tel: 65 6254 4791 tony.regan@tri-zen.com             Strategy Asset optimisation Sector studies Market studies Forecasting Commercial and technical studies Commercial representation New market entry Detailed business cases Project finance and management Mergers & Acquisitions Organisational Development Based in Singapore with consultants in: Bangkok Beijing Hong Kong Melbourne Perth Sydney Calgary London www.tri-zen.com 45