Communidad GNLM

Small Scale LNG

11 November 2015

D. Verians
Table of content

z Retail LNG Market

z Engie in the LNG retail business : Achievements and Ambitions

— LNG for Transport Sector

— Small scale LNG infrastructure in Large Terminals

— Decentralised LNG Solutions

z Small Scale LNG development approach

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Small Scale LNG value chain at a glance

Source : IGU

Liquefaction Shipping Import and regasification

Conventional > 1 mtpa 120 000 – 260 000 m3
Multi-function facilities
Medium size 0,5 – 1 mtpa 60 000– 120 000 m3

Small size 0,1 – 0,5 mtpa 10 000 – 20 000/30 000 m3 Simple terminal
« Retail LNG »
Mini size < 0.1mtpa < 10 000 m3 Single user facilities

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 Retail LNG is a promising market growing worldwide …

Market Potential Trends

ƒ The global LNG market in expected to grow from today’s 294 mtpa to ƒ Europe
~473 mtpa in 2030
Regulations imposing environmental
ƒ The retail LNG market will feature a continuous growth in the next decade and restrictions and tax incentives on the use of
will reach ~ 75 - 95 mtpa by 2030 (~20% of Global LNG market). fossil fuels.
ƒ Engie has the ambition to reach a 7,5 % market share by 2030 i.e ~5 mtpa.
Conversion of existing LNG terminals for
reloading of small vessels/trucks, development of
Key Drivers small scale liquefaction facilities, supply to off
grids customers
ƒNorth America
Low LNG prices due to shale gas development ;
regulations requiring environmental constraints
on fuel use in the maritime sector.
ƒ Asia
Growing environmental awareness and
diversification policy allowing LNG to have a
place in the energy mix.
China in the forefront with 140 small scale
liquefaction plants & 100 additional plants under
construction or planned ; 2 small terminals in
service; 8 ordered; ~ 1800 LNG stations.
• Severe impact of oil prices Slowing down
drop market ƒ Latin America
• Uncertain economic recovery development Monetisation of stranded gas fields and supply
Source: IGU to off grids customers

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 Retail LNG Market
Overview

NORTH EUROPE ASIA CHINA

AMERICA
25 Small scale
liquefaction facilities
~100 LNG stations in USA
Æ From peak shaving
North Europe leads
4 small liquefaction plants
4 small scale terminals
Adaptation of traditional
terminals
Efforts & incentives to
promote LNG as fuel
140 Small scale liquefaction
plants
2 terminals in service
8 in construction
About 1800 LNG stations
OTHER COUNTRIES
Under assessment

DRIVERS

Regulations
(Environment) Demand
Low LNG
& &
Price Taxes Environment
Incentives

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Engie targets to 2 markets « Niche LNG » and « LNG as a fuel »

Origin Transport Final customers Potential

2025
> 10 MTPA

NICHE
• Industrials LNG FOR
Trucks (~40 -50 m3)
• Local Natural Gas OFF-GRID
distributors CUSTOMERS
• Gas fired power Supply small or
ƒ Large LNG plants isolated markets

Terminals Small-scale LNG carriers

(5000 – 20 000 m3)
Potential
2025
> 50 MTPA

LNG Bunkering vessels

~5000 m3 • Shipping LNG AS
ƒ Small companies FUEL
Liquefaction • Trucks or Trains Ship bunkering
Transportation (sea-going &
Units inland),
companies
LNG for trucks
• Mining trucks or trains, High
LNG as fuel / Filling stations
horse power
applications

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 Engie in the LNG retail business : Achievements and Ambitions
ƒ 5000 m3
Bunkering Vessel
to be delivered Q4
Sea Shipping 2016, in the port of
Zeebrugge to reach
the ECA zones
ƒ GNVert is operating 3
LNG as fuel
LNG Stations in 2015
as of part of Blue
Corridors Program and
Trucks
reinforce its current
position in CNG (30
stations)
Opportunity in the Netherlands and Germany,
supported by the LNG Masterplan Rhin-Danube
Inland Shipping
Potential in China (Yangtze River, Grand Canal ...)
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ƒ LNG solutions bunkering
truck to ship in
Rotterdam. Antwerp and
Zeebrugge
ƒ Developments in
Rotterdam, Nijmegen,
Lelystad. & Eemshaven.
ƒ The Everett Terminal
has developed a LNG
fueling station ( First
station opened in 2012
in Massachusetts and
supply with Transgas to
fuel its new LNG
loaded trucks fleet
ƒ LNG Solutions is
operating 2 LNG
fueling stations in NL.
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 Engie in the LNG retail business : Achievements and Ambitions
ƒ LNGeneration is operating 7 satellite
plants in France and provides a
comprehensive solution for LNG
supply, transportation, storage &
Off Grid regasification to industrial customers
Customers not connected to gas networks
ƒ 360 GWh of sales

Small Scale LNG

ƒ Elengy: truck loading station for LNG
Niche LNG

infrastructure terminals in Montoir and Fos Tonkin

development in
ƒ Sales ex-terminals (Montoir, Fos-
large terminals Tonkin, Isle Grain, Zeebrugge,…) for
& Sales ex- LNG Retail market

terminal ƒ GNLM: truck loading station

ƒ Indonesia: Central Indonesia for the supply,

Decentralised marine transportation & distribution of LNG for
power generation (21 locations ~ 1,4 mtpa,
solutions 1600 MW); Western Indonesia 5 IPP’s tenders
with a possible unified LNG supply solution
through a milk run.

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LNG for Transport Sector
 LNG
LNG as transportation fuel
for sea-going shipping: logistics and economics

LNG bunkering vessel (LBV)

LNG 5,000 – 10,000 m3
terminal
Shipping lines
Ship owners

LNG as fuel for shipping: comparison with marine fuels

A regional business model

Differential to be
shared between
LNG supplier
and buyer

Zeebrugge-Le Havre Based on 80$/bbl GO FO

190 nm (nautical miles)
or 350 km

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 LNG as fuel for sea-going shipping

LNG as Fuel for Sea-Going shipping

z Framework agreement between ENGIE, MITSUBISHI

Corporation & NYK

z The world first LNG bunkering vessel (5,000 m3) ordered

mid 2014

z Commercial start-up in Q4 2016, in the port of Zeebrugge:

UECC first customer with 2 new built car carriers
z GTT subsidiary: 2200 m3 LNG Bunker Barge in the US
¾ Contract signed February 25, 2015
¾ Single cargo tank of innovative GTT Mark III Flex
technology with BOR 0.38%/day
¾ Equipped with the REACH4TM Bunker Mast for safe,
reliable LNG transfer
¾ Cold LNG delivery ensured by Stirling StirLNG-4
cryocooler units
¾ Development of dedicated barge simulator training
package
Class Society
¾ Speed up to 8 knots
Artist view of the LBV bunkering LNG to a container ship
Shipyard Designer Shipowner Operator Customer

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 LNG as fuel for inland water ways/coastal shipping

LNG as fuel for Inland/Coastal shipping

z Development in Netherlands (Rotterdam) and in Belgium

(Zeebrugge, Antwerp) of LNG bunkering (truck to ship) since
2014 by ENGIE LNG Solutions ( 100% ENGIE Subsidiary)

z Inland shipping: Eiger-Nordwand, Danser

z Coastal shipping: Coral Methane, Anthony Veder

Codes for ship bunkering Truck to ship LNG bunkering

ISO TS 18683 “Guidelines for systems and

installations to supply LNG as fuel for ships”

The concept can be duplicated in

other ports

Artist view of the LBV bunkering LNG to a container ship

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 LNG as fuel for trucks

z Public 7d/w 24h/24h, unmanned,

z Remote monitoring 24/7 (dispatch center)

Duiven Public fueling station, NL

z Zero emission policy in normal conditions

z F&G system, one alarm panel for all sensors (temperature,
gas, smoke and flame)
z Trucks are identified automatically by means of RFID.
z Payment Column (financial system acc. IFSF protocol)

Codes Leeuwarden Public semi-mobile fueling station, NL

- National
- ISO 16924 under final submission

The concept can be duplicated in

mining & trains & in cities Artist view of the LBV bunkering LNG to a container ship

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Small scale LNG infrastructure in Large
Terminals
 Small LNG infrastructure in Large terminals
Small vessels loading

Adaptation of the jetty to allow docking, mooring

and reloading of SS LNG vessels
GNLM

ƒ Loading rate: up to 600 m3/h

ƒ Small adaptation works : mooring points to be

reoriented to receive small LNG vessels

Montoir & Fos-Tonkin Terminals operated by Elengy (France)

ƒ Temporary solutions using mobile fenders and

with restricted access conditions can be offered
in Fos

ƒ A short term specific tariff is published for Fos

since April 2015, adapted to the size of the
ships

Artist view of the LBV bunkering LNG to a container ship

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 Small LNG infrastructure in Large terminals
Truck Loading Stations
GNLM truck loading point

ƒ Loading rate: 75 m3/h

ƒ Flexible hoses 3” (LNG) & 2” (NG)

ƒ Future Expansion: up to 4 loading bays

Everett Marine Terminal (US) – 4 truck loading bays

ƒ a long experience; >100.000 trucks loadings;

ƒ up to 10.000 trucks/year (~10% of gas send-out)

ƒ Loading time: ~45 min

ƒ Flexible hoses

Montoir & Fos-Tonkin Terminals operated by Elengy (France)

ƒ Loading of trucks & Iso-containers

ƒ Flexible hoses

Artist view of the LBV bunkering LNG to a container ship

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Decentralised LNG
Solutions
 Decentralised solutions – Small Scale Satellite Plants
Milk Farm, Storage: 80m3, 250 Nm3/h

LNGeneration built and operates 7 satellite plants

in France

• Storage from 60 to 120 m3

• Flowrate up to 800 Nm3/h

• Remote monitoring

• Alternate fuel: HFO, LPG and

Diesel

• 8 contracts signed representing 100 GWh/year

(6700 tons or 335 trucks); 300 GWh /year at the
end of 2016 (~20 contracts)

The concept can be duplicated in

Chile Artist view of the LBV bunkering LNG to a container ship

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 Decentralised solutions – Small Scale LNG Chains

z URUPABOL – Study by Tractebel Engineering (ENGIE

Subsidiary) of a small LNG chain from Bolivia to
Uruguay

Artist view of the LBV bunkering LNG to a container ship

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 Decentralised solutions – Small Scale LNG Chains

z Brasil –Small LNG chain to provide gas in Porto Alegre

Lagoa dos Patos, Porto Alegre
region
Details of the Project
• Onshore Regas Small Scale Terminal
9 Provider Terminal: Terminals in Brasil
9 Site: Lagoa dos Patos (Porto Alegre)
9 Carrier: LNG carrier (16,000 m³)
9 Storage: LNG tank (35,000 m³)

•Terminal Capacity:
9 Regas: 4,0 MMSm³/day – two carriers operation

Artist view of the LBV bunkering LNG to a container ship

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 Decentralised solutions – Small Scale LNG Chains

z Brasil –Small LNG chain to provide gas in Porto Alegre

region

Full scale to small scale Ship-to-ship transfer

Onshore Regas Solution

Offshore Solution –
Barge FSRU

Artist view of the LBV bunkering LNG to a container ship

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 Decentralised solutions – Small Scale LNG Chains

Central Indonesia – LNG Supply for 21

Distributed Gas Plants in Sulawesi, Kalimantan
and Nusa Tenggara
z Semi base and peakers installed power ranging from 5 to
450 MW for a total of 1600 MW

z Individual estimated LNG demand ranging between 1

mmscfd and 20 mmscfd

z Total demand estimated to ~1,4 mtpa

Optimal LNG distribution scheme

Artist view of the LBV bunkering LNG to a container ship

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 Decentralised solutions – Small Scale LNG Chains

Optimal LNG distribution scheme

z Preliminary supply chain sizing :

¾ Cost -oriented optimization

¾ Mathematical modelers in line with the

problem’s complexity (In-house tool
“Optirail”)

Artist view of the LBV bunkering LNG to a container ship

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 Engie continuous involvement in the challenge of building
reliable small scale LNG supply chains

ƒ 50 years know-how and innovation leads to a very high

safety level and track record in our activity
9 GNLM - safety: 0 accident in operation since day 1 (April 2010)

9 Engie French terminals are level 7 as regards the rating

system DNV ISRS8©

ƒ Standardization and cooperation

9 Member of SGMF (Society for Gas as a Marine Fuel)

9 Member of NGVA Europe (Natural Gas Vehicle Association)

9 Chairman of ISO TC67/SC5

9 Members in different ISO & EN Working groups

ƒ Development of a SSLNG training offer

9 Focused on key competencies: Safety, Fire fighting, Behaviour
of an LNG mix, Vapour/ BOG handling

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Small Scale LNG development approach
Building partnership with our customers

z ENGIE can support Customers in Small Scale LNG project

development with a tailor made, cost effective and safe approach:

— Understands the customers needs

— Can propose solutions

— Can play an INTEGRATOR ROLE in the LNG chain

— Can provide the LNG Supply

— Can INVEST along the LNG chain

— Can provide ADVISORY SERVICES / TECHNICAL ASSISTANCE

— Can provide ENGINEERING , FEED, EPC contactors MANAGEMENT

— Can provide O&M

— Can provide TRAINING

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 Small Scale LNG development approach
Designing the Chain is a complex activity

Shipping
from
LNG sources to Transport
Sourcing HUB/Termina from HUB to Customers
l Customers

-Storage size?
-Means of
- Situation of -How many -Accessibility?
transport?
the source? vessels?
-Delivery -Utilities?
-Multiple -Vessel size?
path?
sources? -Vessel type ?
-Hub situation?
-How many
hubs?

z Key input for the LNG supply chain pricing and project cost evaluation
z A multi-criteria optimization :
ƒ Cost
ƒ Security of Supply
ƒ Technical maturity
ƒ Operational management

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Small scale LNG development approach
Select the potential sites

z Key elements
A. Distance to supply point ensuring
reasonable shipping cost
B. Compatibility for loading of small
scale LNG carrier in the supply point
C. Critical mass to cover fixed
infrastructure cost
D. Logistic optimization with number of
clients to share shipping and minimize
storage capacity
E. Site selection ensuring nautical
access, safety distances, …

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Optimization of the LNG chain: (1/3)
MAIN ELEMENTS :
• Jetty
MID-SCALE TERMINAL/ HUB • Storage
• Regas equipment
• Reload equipment

‰ For large storage capacity requirement and/or large regasification requirements / Full containment tank

‰ Supplied by LNG Ship (Jetty required) ; Reload capacity (for ship/truck services) can be considered

‰ Regas to be studied case by case (ORV / SCV / STV / AAV / …)

Can be considered : Onshore solution Floating solution

Some orders of magnitude:

¾ Storage : 15 000 – 50 000 m3
¾ CAPEX : 80 M$ - 250 M$
¾ Construction time : 2 to 3 years
¾ Footprint : 5 to 20 ha

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Optimization of the LNG chain: (2/3)

MAIN ELEMENTS :
SMALL SCALE TERMINAL • Jetty
• Storage
‰ For LNG dispatch
• Regas equipment
‰ Supplied by LNG Ship (Jetty required) • Truck loading
‰ Medium storage capacity (Pressurized bullet)

‰ Potential regas by AAV

‰ Floating solution can be considered

Some orders of magnitude:

¾ Storage : 500 to 10 000 m3
¾ CAPEX : 15 to 50 M$
¾ Construction time : 1,5 to 2 years
¾ Footprint : 1 to 4 ha.
¾ Vendors example : Chart Industries

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Optimization of the LNG chain (3/3)
MAIN ELEMENTS :
•Storage
•Regas equipment
REGAS SATELLITE STATION
‰ For small gas supplied quantities

‰ Will be considered for small power requirement (5 MW to15-20 MW)

‰ LNG supplied by truck

‰ Moderate storage capacity

‰ Regas by AAV

Some orders of magnitude:

¾ Storage : 100 to 300 m3
¾ CAPEX : 1 to 2 M$
¾ Construction time : 0,5 to 1 year
¾ Footprint : 0.01 to 0.2 ha < 1ha
¾ Vendor example : Indoxcva

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