1. Hinman LNG Early Stage Assessment
VaughanA Jones |The Hinman Group
www.hinmanlng.com/847-868-6026
“Minimizing Risks”
“Providing Options”
2. Early Stage Initiative Assessment
Hinman’s Role: ”Minimizing Risks, Providing Options”
Guide technology and demand selection – which projects and locations are likely to be most
suitable for Small/Medium Scale? Gas-to-Power Generation/Regional Grids/Mini Grids
Gauge developable potential – How many kilowatts of Power Generation plant could be built
on the site, given the technology, terrain, land cover, transmission access, and plausible
environmental and other constraints? Is the demand there for a developing local economy?
Can Small Scale LNG be integrated with Gas Flare Reductions in a region?
Support permitting and community acceptance – preliminary plant designs can support the
appropriate analyses to advance permitting and promote community acceptance.
Support financial models and early-stage financing – Such information feeds the financial
models that attract investors and lenders and help determine whether a project is feasible.
Escalation of Project - Depending on ‘Scope’-Early Stage AssessmentTime Frame-90/180 Days
4. EARLY STAGE SMALL SCALE INFRASTRUCTURE LNG SITE DEVELOPMENT
Issues in Gas-to-Power Generation and Regional Grid Networks
Site Location Evaluation and Review with Estimates for Demolition, Remediation and Build-Out
Costs
Assessment of Project Parameters and Hurdles-Between 90/180 Days depending on ‘scope’-to
Escalate the Early Stage-decision-making process
Early Stage Estimates of Front-End Engineering & DesignCosts ofTanks, Piping,Cooling
Equipment
LNG/CNG Local Site Permitting Support (Legal, Regulatory and Environmental) –Large Scale
permitting handled by primary developers
Safety Protocols Developed for LNG Receiving / Storage /Transport
Develop and Market to segments that build Baseload-High Horsepower, Mining, Municipal,
Manufacturing, Urban sectors reflecting Demand for reliable Power Generation
5. Small/Medium Scale vs Pipeline Build-OutsAddress Gas-to-Power/RegionalGrids
Small/Medium Scale LNG
Ancillary to Large Scale-provides local
distribution of LNG products
Locations 25 to 100km from Large Scale
Import terminal are viable
Remote Districts can be serviced byTT and
ISO containers.
Investments are <1-5% of a Large Scale plant
Power Generation made available to local
districts for economic growth and improved
community and municipal services
Standardization of units improves efficiencies
and safety
NG Pipelines
Are viable for large urban regions
Large Investment and Build-out can be
problematic for regional areas
Time lines are much longer for remote or
isolated regions or not viable
Delays can be extensive due to
bureaucratic agenda.
Only large commercial customers can
access the NG
7. Small/Medium Scale Demand
Small Scale is ideal for remote regions, but East Asian countries are seeing the benefits of
Small/Medium Scale to local districts.China, India, Malaysia, Indonesia are leading the Small
Scale LNG segment
Small Scale can use the refinery model-Large Scale ProcessingUnits-supplying, strategically
placed locations (x km) for LNG, virtual p/l (T/T) for local distribution to Small Scale and/or
Modular LNG units, which can also fill Regional Grid needs
With Small/Medium Scale, Power Generation and Regional Grids can be upgraded to address
increased demand (i.e. the mining industry, light manufacturing, and communities)
The World Bank has provided the statistical metrics outlining where the growth areas for
Small/Medium Scale can grow economies-e.g. Central Asia, Central Europe, East Asia
Small/Medium Scale is not a ‘pure engineering play’. Substantial buy-in is needed from local
community and district leaders.They have to see the benefits in a tangible way. If not, these
stakeholders can be problematic.
9. Small/Medium Scale LNG
Small Scale can be ancillary units to Large Scale Build-outs, eliminates the need for
pipeline build-outs into remote regions.This works well for Eurasian,Africa, Asia
Small Scale allows for flexibility in sizing for various markets and regions, with lower
CAPEX and OPEX expenditures-approx. <1%-5%, depending on needs
Unlike Large Scale, Small Scale allows for standardization in units, which improves
commissioning schedules, training, and safety
Host governments can have tangible results to show their citizens-improved services,
expansion of local & regional grids, and tangible economic growth
Small Scale allows for lower energy costs for remote or isolated entities, such as Power
Generation, RegionalGrids, Mining, High Horse Power transportation
Paris Climate Accord-48 countries have signed the agreement committing to lowering
emissions on the climate. LNG can address their needs and meet their climate goals
11. Integrating Small/Medium Scale LNG with Gas Flaring Reduction
Extensive work on Gas Flaring has been done by Mike Farina of GE and is a great
resource for infrastructure leaders, developers and builders of Small Scale LNG
Gas Flaring is a major component in the release of hydrocarbons into the atmosphere
adding to global warming and climate change.
Russia,West Africa, Iran, Mexico,Asia and the Caspian Sea areas continue wrestling
with Gas Flaring issues. Investing the time and attention can yield results for all
Stakeholders in the Upstream and Downstream process
Monetizing this loss resource is an opportunity for host countries wrestling with the
issues, of a product, that once is harnessed, can yield values from $3.00mmbtu to
$6.oommbtu (very rough estimates) to a market place, provide a Power Generation
source for local regions, without investing in Large Scale LNG
From a commercial standpoint-harnessingGas Flaring points to several wins:
Reduced Flaring & CO2 /Enhanced Regional Econ Dev/New Markets for Clean NG
13. TheTake-Away for Small Scale LNG vs Large Scale
Viable for Regional and Districts
Distribution network can be developed
Local and Regional needs can be met
Faster Comissioning
Lower CAPEX
Lower OPEX
Standardization eases maintenance and
training
Large Scale
Made for major import facilities
Designed for large utility networks
CAPEX for buildout of plant and pipeline
network-approx. $5.0bill
Pipelines not viable in remote regions or
districts
Harder to finance with limited off-takers