Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

ENI REFINING & MARKETING SANNAZZARO GASIFICATION PLANT

PROJECT UPDATE AND START UP EXPERIENCE

Dario Camozzi - Snamprogetti, ItalyRaffaella Lucarno - Eni Refining & Marketing, Italy

Joachim Wolff - Shell Global Solutions, The Netherlands

Gasification Technologies 2006Washington, DC

October 1- 4, 2006

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

SOOT WATERFILTRATION

AIRSEPARATIONUNIT (o.b.l.)

SULPHURRECOVERY(Refinery)

SHELL GASIFICATIONPROCESS

(SGP)COS/HCN

HYDROLYSISACID GASREMOVAL

MDEA

AIR

FEEDSTOCK(VISBREAKER TAR)

ACID GASOXYGEN

SULPHUR

HP STEAM

NITROGEN

BFW HYDROGENRECOVERY

COMBINEDCYCLE

UNIT(EniPower)

HYDROGEN

POWER

SOOT ASHREMOVAL UNIT

(SARU)

SOOTWATER

(SPENT CARBON)

CARBON DIOXIDE EXPORT

WATER DISCHARGE FILTER CAKE

METALCARBONYLREMOVAL

METAL ASH

FLUE GAS

SYNGAS

(NAT.GAS)

STEAM EXPORT

Process Block Diagram

WASTEWATER

STRIPPER

TAIL GAS

WATER RECYCLE

SOUR GAS

Eni R&M-SannazzaroProcess Block Diagram

2

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

IMPIANTO DI GASSIFICAZIONE TAR DA VISBREAKINGIMPIANTO DI GASSIFICAZIONE TAR DA VISBREAKINGPROJECT DESCRIPTIONPROJECT DESCRIPTION

ENI R&M2280 t/d Syngas38000 Nm3/h H2

VVR(TAR)Snamprogetti/Shell GS

- Feedstock: 1200 t/d VVR(Tar)- Shell “radiant cooler”- “High” pressure (62 barg)- AGR (MDEA-Dow)- Ni/Fe Carbonyls removal- Hydrogen (Membr.+PSA) - 2 gasif.+ 1 LTGC ?? etc.- Start Up March’06

TarData on dry basis

Design Feed

Carbon %wt 85.73

Hydrogen %wt 9.05

Sulphur %wt 3.54

HHV (* = calculated) MJ/kg 41.28

LHV (* = calculated) MJ/kg 39.30

3

EniPower250 MWe

Snamprogetti/Ansaldo

- 1 x V94-2K (Siemens/Ansaldo)- 2 x V94-3A.2 (Siemens/Ansaldo)- Start Up July 2003/2004

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

ENI Sannazzaro IGCCProject Description

Ansaldo-SiemensV94-3A.2(400 MW)

Ansaldo-SiemensV94-3A.2(400 MW)

Ansaldo-SiemensV94-2K

(250 MW)

EniPower

EniRefining & Marketing

Eni Gas & Power

Gasification plant50 t/h Tar

H2

Syngas

Natural gas (12.5 km new pipeline)

4

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

MAIN ENTRANCE

D

AIR LIQUIDE

ENIPOWER

GASIFICATIONISLAND

5

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

Refinery

CCUSYNGAS

TAR

FUELG

AS

CW

HYD

RO

GEN

TAIL G

AS

AC

ID G

ASES

BD

MPS

DW BD

(FIRE WATER, IW, WATER TREAT., IA, SIGNAL EXCH., etc.)

CCU

IntegrationPPU

6

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

GASIFICATION PLANTGASIFICATION PLANTOVERALL PERFORMANCESOVERALL PERFORMANCES

TarData on dry basis

Design Feed

Carbon %wt 85.73

Hydrogen %wt 9.05

Sulphur %wt 3.54

HHV (* = calculated) MJ/kg 41.28

LHV (* = calculated) MJ/kg 39.30

Feed = 2 x 25 t/h

7

Sweet Syngas to Hydrogen Recovery – 2560 tons/dLHV – 3700 kcal/kg465 MWth

CompositionData on dry basis

CO %mol 50.19

H2 %mol 45.95

CO2 %mol 2.94

Ar %mol 0.10

N2 %mol 0.24

H2O %mol 0.32

CH4 %mol 0.26

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

Sannazzaro Gasification ProjectMain Characteristics

Eni Refining & Marketing-EniPower

- Feedstock: VVR(Tar)- Shell “radiant cooler”- WHE with internal Superheater (high efficiency-

steam production)- “High” pressure (62 barg)- Acid gas removal (MDEA-Dow)- Carbon Dioxide production- Ni/Fe Carbonyls removal- SARU to minimize solid waste production- Hydrogen recovery (Membr.+PSA) - 1 xV94.2K(Siemens/Ansaldo)- 2 gasif.+ 1 LTGC etc.

- Start-up: March 2006- Commercial Operation: April 2006

8

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

Sannazzaro Gasification ProjectContract Summary

Eni Refining & Marketing-EniPower

Contract type LSScope of work EPCContractor(s) SP

Licensor(s) SGS / Dow / UOP

Detailed eng. SPConstruction SP

POWER BLOCKAnsaldoEnergia

9

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

Sannazzaro Gasification Overall Project Schedule

ContractContract DurationDuration

Basic & Basic & DetailDetail EngineeringEngineering

MaterialsMaterials ProcurementProcurement

04/20

06

ConstructionConstruction & & PrecommPrecomm..

CommissioningCommissioning & Start Up& Start Up

11/20

02

10/20

03

11/20

05

10/20

04

07/20

0302

/2005

Contract conversionto EPC LS

Test Test RunRun06/2006

10

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

Sannazzaro Gasification ProjectCommercial Operations

Summary Duration

Commissioning 127 days From 17th November’05 to 23rd March’06 Start-up Train 1 5 days From 23rd March’06 to 27th March’06 Start-up Train 2 11 days From 19th April’06 to 29th April’06 Overall Start up 38 days From 23rd March’06 to 29th April’06

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Cause of shutdown 1st train 2nd trainInstrumentation 6 0 Mechanical 2 2 Operational 1 2 Common part 1 1 Total 14

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

Sannazzaro Gasification ProjectOutages Report

PLANT OUTAGES

44%

14%

21%

21%

InstrumentationMechanicalOperationalCommon Part

12

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

Sannazzaro Gasification ProjectOutages Report

Train 1 (up to 07/31/2006)

2%10%

1%4%

83%

Instrumentation

On streamOperational

MechanicalCommon Part

Train 2 (up to 07/31/2006)

1%

25%

74%

13

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

Sannazzaro Gasification ProjectCommercial Operations

SYNGAS SENT TO ENI POWER

0

500

1000

1500

2000

2500

3000

date

ton/

day

1° ON2° OFF

1° OFF2° ON

1° ON2° ON

1° OFF2° OFF

1° ON2° OFF

1° ON2° ON

1° OFF2° ON

1° ON2° ON

1° ON2° ON

START UPUNITA' 33

1° ON2° OFF

1° ON2° ON

1° ON2° OFF

1° OFF2° OFF

1° ON2° OFF

2560

1280

14

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

Sannazzaro Gasification ProjectCommercial Operations

15

MONTHLY AVERAGE PRODUCTION OF SYNGAS

488

1038

1361

20001907

0

500

1000

1500

2000

2500

Mar-06 Apr-06 May-06 Jun-06 Jul-06

month

ton/

day

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

Sannazzaro Gasification ProjectCommercial Operation

MONTHLY ELECTRICAL OUTPUT MWh (GAS TURBINE & STEAM TURBINE)

0

4136255836

91672 96308

0

14750

22154

3300434675

0

20000

40000

60000

80000

100000

120000

140000

Mar-06 Apr-06 May-06 Jun-06 Jul-06

month

MW

h steam turbine

gas turbine

16

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division17

Sannazzaro Gasification Project

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

• Mechanical design (leakages) on HP BFW Air Cooler

• Design (leakage) on newly developed superheatermodules of the WHE

• Soot deposition in the slurry tank

• Solid handling transportation

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Sannazzaro Gasification ProjectFirst Run Experience

Issues

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

ENI Sannazzaro Gasification Plant

• “Hesitant” start-up

• “Low” availability•“High”

ContractorLicensorOwner

19

•“Smooth”

Snamproget t iSnamproget t iA company of Saipem

Eni Refining & Marketing Division

GASIFICATION TECHNOLOGYTHE MATURE WAY…

Sannazzaro Gasification plant has shown a very smooth and reliable start up coming into operations in a very

short time with performances at high level of availability and with promised process performance from the very

beginning.

“This proved that gasification technology is really today a mature technology; and we look forward to be part of new

projects that can be valuable for both Owner and Contractor and also for the Environment”

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