WELCOME TO FLNG FORUM 2010:24 MARCH

PRESENTED BY MUKES GUPTA – MD CANADOIL ENGINEERING

© 2010 Canadoil Group  © MGwww.canadoilgroup.com

WHY CHINA IS SUCH AN IMPORTANT PLACE TO ORGANIZE THIS FORUM!

REMEMBER

ZHENG HE SAILED FROM CHINA TO SOUTH PACIFIC, INDIAN OCEAN, AFRICA, PERSIAN GULF IN 7 EPIC VOYAGE FROM 1405 TO 1433 (SOME 80 YEARS BEFORE COLUMBUS VOYAGE)(SOME 80 YEARS BEFORE COLUMBUS VOYAGE)

CONSTRUCTED SOME OF THE LARGEST SHIPS IN NANJING – 3 SHIPYARDS STILL EXIST!

ZHENG HE’S TREASURE SHIP WAS 400 FT LONG AS COMPARED TO COLUMBUS’S 85 FT!

WHY CHINA CAN BECOME WORLD LEADER IN THE FLNG BUSINESS!

LABOR WORK FORCE – NEED MILLIONS OF LABOR WORK FORCE NEED MILLIONS OF MANHOURS OF WORK TO BUILD FLNG

COST OF LABOR IN CHINA MANY TIMES COST OF LABOR IN CHINA MANY TIMES LESS AS COMPARED TO EUROPE / USA

NEED LARGE SHIPYARDSNEED LARGE SHIPYARDS

NEED LARGE CONSUMER DEMAND TO INVEST

NEED LARGE RESOURCES MATERIAL, ,STEEL, MONEY, MANAGEMENT & MAINLY MANPOWER

NEED GROWING ECONOMY WITH FUNDS WILLING TO INVEST

CURRENT SCENARIO………LNG MARKET PERSPECTIVE

SEVERAL NEW LNG TERMINALS WILL START BETWEEN NOW AND 2012 BUT MANY PROPOSED LNG SEVERAL NEW LNG TERMINALS WILL START BETWEEN NOW AND 2012 BUT MANY PROPOSED LNG PRODUCTION CAPACITY IS NOT LIKELY TO MATERIALIZE

LACK OF INVESTMENT IN NEW LNG PRODUCTION DUE TO ESCALATING PLANT COST AND FINANCIAL MELTDOWNMELTDOWN

SHORTAGE OF LARGE GAS FIELDS NEAR SHORE & LACK OF SUITABLE PLANT SITE

LEADING LNG PRODUCING NATIONS HV DECLARED MORATORIUM TO USE FOR DOMESTIC PURPOSE ONLY

OPERATION OF CURRENT LNG CARRIERS ARE AT RECORD LEVELS

INCREASING DEMAND FOR LNG & SHORTAGE OF GAS LIKELY

TYP. US LNG IMPORT FORECAST….. SHORTFALL OF 150 MILLION TPY OF LNG EXPECTED

BY 2012 WORLDWIDE

THERE ARE SEVERAL HUNDREDS “STRANDED” NAT THERE ARE SEVERAL HUNDREDS STRANDED NAT GAS FIELDS IN THE WORLD TO SUPPORT 1MTPY LNG PLANT FOR NEXT 10 YEARS OR MORE

100’S OF PROSPECTIVE FLNG PLANTS IN RANGE OF 1 100’S OF PROSPECTIVE FLNG PLANTS IN RANGE OF 1 MTPY IDENTIFIED

EACH PLANT WILL BE 2 to 3 BILLION $+ INVESTMENT $HENCE MORE THEN 100 BILLION $ INVESTMENT EXPECTED

ISSUES FOR FLNG…….

There are a number of issues that need to be carefully examined when considering a floating LNG facilitya floating LNG facility• Location & sea condition• Survival in storm conditionsE i h f ili i i i & h• Ensuring smooth facility operation in motion & rough sea

• Suitable sites having available large quantity of Gas which can be trapped subsea• Availability of skilled manpower to build & operate, material and equipments / package modules suitable for operation in marine environment, suppliers, Certifying agency….. • Whether we really need such huge FLNG terminals or whether a smaller version y gcan be more productive and economical• Access for export / import vessels (tugs & pilotage)• Type of plant liquefaction / regasification• Type of plant, liquefaction / regasification• Type of vessel & containment• Mooring of the facilityM th d f t f f• Method of transfer of cargo

• Deck congestion

DIFFERENT PARTNERSHIP POSSIBLE RELATED TO FLNG – NEEDS A STRATEGY & VISION TO DEVELOP A SUCCESSFUL PROJECT BENEFITING ALL STAKEHOLDERS VISION TO DEVELOP A SUCCESSFUL PROJECT BENEFITING ALL STAKEHOLDERS

(A)GAS SUPPLIER

(B)GAS TRADING CO

(C)LNG SHIPPING CO

(D)LNG BUYERGAS SUPPLIER GAS TRADING CO. LNG SHIPPING CO. LNG BUYER

LIQUEFACTION AND STORAGE SERVICE

(E)(H)

LNG USER (POWER

(J)SHIP BUILDER (YARD)

Leasing arrangement (d il b i )

(PLANT COMPANY)

(I)LIQUEFACTION PLANT

OWNER

(G) (daily rate basis) (I)OPERATING COMPANY

(K)MODULE SUPPLIER

(F) EPCIC contract – LumpSum (L)

LIQUEFACTION PLANT EPC CONTRACTOR

(F) pTurnKey (LSTK)OTHER CONTRACTOR

& SUPPLIER

SIMPLIFIED LNG PROCESS BLOCK DIAGRAM (TYPICAL)( )

TYPICAL ONSHORE LNG PLANT SCHEME…….CASE STUDY

CURRENT ATTEMPT OF GIANT FLNG CONCEPT HAS SOME RISK!

QATAR GAS OFFSHORE & AMINE FILTERATION MODULE……CASE STUDYQ

TEMPORARY FLARE PACKAGE SUITABLE TO FIT & USE ON 3 DIFF PLATFORMS

ASSEMBLY OF MODULES……MODULARIZATION IDEAS

DESIGNING GAS/ LNG FACILITIES FOR LOCATION ONDESIGNING GAS/ LNG FACILITIES FOR LOCATION ON FLOATER……

AMINE SWEETENING MODULE

ONSHORE PLANT CONVERTED TO MODULE TO BE SHIPPED…….CASE STUDY

WEIGHT REDUCTION ANALYSIS & OPTIMIZATION OF MODULES FOR OFFSHORE PLATFORM ………..CASE STUDY ZORA PLATFORM

WEIGHT REDUCTION ON THE OFFSHORE ..…..CASE STUDY ZORA PLATFORM

IDEA OF FLOATING GAS TO LIQUID PLANT TO AVOID ENERGY WASTE IN QLIQUEFACTION & REGASSIFICATION

LET FLNG PROVIDE SAFE AND ADEQUATE ENERGY TO MASSES AT LOW COST

FCNGFLOATING PIPE TO CARRY CNG

FLOATING POWER PLANT

CARRY CNG

COPY RIGHT  2010 ©………….  MUKESG@CANADOILENGINEERING.NET

Use of LNG helps in reducing Carbon footprint and save environment!

LET US BEGIN THE FLNG FORUM WITH A PRAYER!

SINCE 1000’S OF YEARS, IT IS CUSTOMARY TO BEGIN SUCH GATHERING BY INVOKING A PRAYER & BLESSING. IN THIS PRAYER WE SEEK LORD’S BLESSINGS FOR A GROUP STUDY THAT IS FREE WE SEEK LORD S BLESSINGS FOR A GROUP STUDY THAT IS FREE OF OBSTACLES CARRIED OUT WITH HEALTHY MIND & BODY WITH CONCENTRATION IN A CONDUCIVE ENVIRONMENT WITH EASY COMMUNICATION FREE OF ARGUMENTS & HATRED. OM PEACE PEACE PEACEOM PEACE PEACE PEACE

ACKNOWLEDGEMENTS (PHOTOGRAPHS; ARTICLES & PRESENTATION….)· ABS· ABS

· Shel l

FPC· FPC

· Technip

· FlexLNG

· QG

· ConocoPhillips

· Saipem

· DNV

· Aker

· Waller Marine

· EnerSea Votrans

· E & P (Brian)

· Asim Deshpande & Michael EconomidesEconomides

· CE & CG Team (Bill / Milind) & others