Date: 4th December 2013

Location: Rijswijk

LNG Canada
PTE Europe LT Meeting
Agenda

1. Project Description
2. Technical Highlights
3. Project Execution Highlights
4. RTA and LNG Port Development
5. P&T support services to LNG Canada
OUR PROJECT

Proposed Project site

PARTNERS BRING FORMIDABLE EXPERIENCE TO
PROJECT AND TO REVIEW
• South Korea’s principal LNG provider
• Operates 3 LNG import terminals in Korea; other terminals in Asia and Mexico
• Investor in LNG export projects in Australia, Canada, Mozambique

• China’s largest oil and gas producer and supplier

• Launched 3 LNG import facilities in China; an investor in global unconvential
gas production and LNG export facilities (Russia, Australia)

• Investing in LNG since 1969; handles one half of Japan’s LNG imports
• Joint venture position in 9 LNG export investments globally

• LNG player since 1964, operating one quarter of world’s LNG vessels
• 9 LNG projects in 7 countries in operation; 3 new projects under construction
Project Timeline

•PCP: Feb 2014

•DG3: 31st March 2014
•Start of FEED: 1st April 2014
•FID: Q2 2016
•RFSU T1:Q1 2020
•RFSU T2: Q3 2020
Agenda

1. Project Description
2. Technical Highlights
3. Project Execution Highlights
4. RTA
5. P&T support services to LNG Canada
Technical Project Dimensions - Key decisions

• LNG Plant:
– Capacity - 2 train base project, 2 expansion trains (4-1-1)
- 6.3 MTPA per train (average annual)
– Liquefaction process - DMR (3 CWHE in single line-up)
– Cooling Method - Cooling towers using river water make-up.
– Driver concept - GT drive wit helper motor, auxiliary power from BC
Hydro
– Gas treating Configuration - All within Plant complex, no upstream treatment.
– Hydrocarbon removal - Sulfinol D + C5+ removal vessel
– Rundown design - Flashing in the LNG tank
– LNG storage Tank. - Single Membrane Tank, 225km3
– Construction method - Modular build

• Port design:
– 2 LNG Berths,
– Qmax compatible,
– location is Eurocan
LNG Canada – Block Diagram
General Layout LNG Canada plant
Agenda

1. Project Description
2. Technical Highlights
3. Project Execution Highlights
4. RTA
5. P&T support services to LNG Canada
Project Execution Strategy

 Follow ORS Process

 Integrated Organization (Shell & Co-venturers) with LNG &
Canadian Experience
 Modularization
 FEED with Roll Over EPCm
 TA2 Approval, by default, within Resident Engineering Team.
 EIS Permitting led by Company
 Key Interfaces with NTR, Pipeline & RTA Port Development
 Commissioning executed by Contractor with Company
accountable for HSSE & Planning, Start Up by Company.
 Shell DEPs Standards apply.
 Detailed Project Execution Plan for FEED under Development.
Modularization Approach
Modularization – Preliminary Module List

 Preliminary Module List : LNG Trains Process Module (T1 & T2)
~43,000t(*)
#18 modules
 Total tonnage ~ 113,000 tons
LNG Trains P/Rs (T1 & T2)
 Largest module ~5,000 t. ~30,000t(*)
#12 Modules
Interconnecting P/Rs
~24,000t(*)
~56 Modules
 Major Stick Built Equipment:
Loading Lines P/Rs
 Pre-Coolers (E1411/E1412) ~67 Modules
~11,000t(*)
 CWHX (E1415) Vendor Assembled Units (Packages)
~5,000t(*)
 GT + refrigerant compressors ~15 modules
 Acid Gas Absorber (C1101) (*) Weight in tons, incl. design allowances
 Molsieve Vessels (C1201A/D)
 Mercury Removal vessel (C1301)
 Acid Gas Incinerator
 Cooling Towers
Agenda

1. Project Description
2. Technical Highlights
3. Project Execution Highlights
4. RTA and LNG Port Development
5. P&T support services to LNG Canada
LNG Loading facilities

North
Port Development – Scope

North

 Berth C

North
 Lay-down area

Barge berth
Agenda

1. Project Description
2. Technical Highlights
3. Project Execution Highlights
4. RTA
5. P&T support services to LNG Canada
 P&T SUPPORT SERVICES TO LNGC

Regions providing P&T Services to LNGC per discipline/function

Premises Scope
 TA2 within the LNGC Resident Engineering  SME services
Team or LNGC Calgary based team  Additional resources to address
 SGSi focal point in home office to coordinate peak load
service requests  Assurance/Peer reviews
 Discipline focal point in home office to  TA2 review by exception
coordinating discipline support
 Basis for assignment of responsible regions:
 Requirement for expertise on local rules &
regulations - HSSE, Civil, Electrical
 Expertise in LNG technology - Process, utilities
CSU, Rotating, PACO, Mechanical
 Team continuity
 P
P&T SUPPORT SERVICES TO LNGC

Discipline Locations P&T Services

Support location OR&A
 Discipline support from Operations Rijswijk
Maintenance & Integrity Rijswijk
Rijswijk for supported by
Logistics Canada
Canada/US Engineering
 LNG experience, Process Eng. & Technology Rijswijk
PACO Rijswijk/Calgary
continuity and local
Mechl, Materials & Integrity Rijswijk & US
regulations Rotating Equipment Rijswijk
Electrical Engineering Rijswijk & US
Civil, Struct. & Offshore Eng Rijswijk & US
 Project Management
Utilities, Energy & Heat Transfer Rijswijk
services from Calgary/US Project Management & Services Canada/ US
with support for Rijswijk Project Management Rijswijk & Calgary
(LNG program office) Project Services Rijswijk & Calgary
HSSE & SP Canada/US
Information Technology US/London (TA2)
Information Management Rijswijk/Americas
Contracting & Procurement Canada/US
Finance in Projects Canada
 P
P&T SUPPORT SERVICES TO LNGC - PROCESS

Objective:
 High quality P&T services in time and within budget via smooth and controlled process

Roles & Procedure Definitions:

Disciplines  VHOT - LNGC Venture Home Office Team -
 All SHOT Service request by discipline Calgary/Vancover
to be raised via service request form  SHOT – Shell Global Solutions Home office -
(scope + cost estimate) Rijswijk
 Forms signed of by RET Lead PE –
stored in request log
 Issued to SGSi account manager to
coordinate SHOT services
Project Services
 Similar process coordinated via VHOT
QUESTIONS
BACK UP SLIDES
Feed Gas Sources & TransCanada Grid
Specification versus LNG Plant Design

Partners to deliver
their own gas

• Maximum specification is not the normal

• Three gas compositions defined
– Lean 1018 BTU/scf (37,9 MJ/m3)
– Average 1046 BTU/scf
– Rich 1102 BTU/scf
• Assumptions on total sulphur
• Currently designed for 1.5% CO2
• Assumption no O2
• Design has a limitation on N2
• Maximum limit on aromatics, 25 ppm
Driver /Compressor / HTF configuration
 Main cryogenic heat exchanger

• Technical requirements:
– All CWHE are to be single line up
– 50% stable turndown, 35% startup flow
– Bundle diameter <5.3
– Outlet pressure E-1412 fixed
 Fresh Water Evaporating Cooling Tower System
Abated Cooling tower
Louvres pulled up Plume
abated tower operates as
Louvres let down to stop Dry intended
air flow. Plume abated tower
operates as standard tower

Mixed Outlet air

Outlet air

Inlet Inlet
air Exit air Exit air air

• Visual aspect Exit air

Hot
water
dry section dry section

Exit air
Hot
water
wet section

• Reduce potential for acidification

wet section
Inlet Inlet Inlet Inlet
air air air air

• HSE issue – reduce potential for ice

formation
Standard Cooling tower Plume Abated Cooling tower
Flashing in the tank
Project Delivery Organization

 Post DG3 organization chart developed and resources confirmed.

 Secondees from partners will be embedded into the team.
 Roles and responsibilities defined & available on Livelink.
 Onboarding briefing pack developed and available.
 During the DEFINE phase, the delivery team will consists of :
• The Integrated Project Delivery Leadership Team based in Calgary;
• Pipeline Delivery Team based in Calgary;
• RTA Port Development Team based in Calgary;
• LNG Plant Delivery Team
• Early Works / Site Delivery Team based most likely in Calgary then in Kitimat (1st movers
to Kitimat)
• A Resident Engineering Team (RET) in the FEED contractor’s office(s).
Engineering

 FEED Package delivered by a FEED contractor appointed at DG3.

 Main Automation Contractor (MAC) and Main Information
Contractor (MIC) appointed prior to the start of FEED.
 Shell DEPs Standards apply.
 Because FEED contractor will roll over to EPCm, No demob. of
Shell and / or contractor’s team to continue to:
 perform detailed engineering;
 tender and evaluate critical POs/contracts to be awarded pre-
FID or @ FID.
Construction Strategy

 Construction Strategy: Maximum Modular and pre-Fabrication

 Module Fabrication
 Several fabrication yards (In South East Asia & North America).
 Fabrication yards considered as a construction site.
 Site Activities :
 Despite high level of modularization, on site activities will remain
significant: Site Preparation; Dredging; Camp; Temporary facilities;
Infrastructure upgrades; Material Offloading Facilities (MOF);LNG Jetty;
LNG Tanks; E & I – cable pulling; Mechanical i.e. stick built equipment,
piping and module hook up; Non-Process Buildings.
 Construction Management
EPCm accountable for maintaining HSSE standards & managing construction
sub-contractors activities (Site & fabrication Yards).
First Cargo focus driving Flawless Delivery Program
Modularization Approach
Modularization – Work Done

 As per PG17b, conducted a modularization screening study:

Schedule Cost Labor Availability Logistics

Decision Gate:
Are there benefits in having some Module Construction
degree of modularization ? Yes Strategy

No
Conventional Approach:
Stick Build

 Selected a modular construction strategy driven by:

 Labour Availability: Construction Labour Shortage expected over Construction Period.
Demand Cannot be Fully Met by In-Country Resources – See Labour Strategy.
 Cost: Given manhours rate and Kitimat productivity, Overall Net Cost Benefit anticipated
with modularization.
 Schedule: Labor availability constraints mitigated by modular approach. Increase Schedule
certainty.
 Logistics: Improved infrastructure (RoRo, Haul Roads) supports modules up to 10,000t –
Optimized size ~5,000t and 36m wide to ensure vessels availability.
Modularization Approach
Modularization – Work done

 Modular Quantification study

 Module Weight & Size Definition (using in-house Quantity Base Matrix (QBM) tools)
 Input: Defined Equipment included in module, deck and area allocation; spacing
between equipment based on maintenance and operation requirement.
 Output: Module Dimension and Weight
 Established Module Fabrication and Shipping Sequence

 Deliverables
 Input to T2 cost estimate and L2 schedule.
 Input into Train Lay out
 Module Quantification report
 Preliminary Module List
 Lessons learned sessions (CEP with N. Smallwood, Gorgon LNG with J. Van Beek, M.
Van Halteren and D. Agterhuis, Arrow LNG with J. Goudriaan and H.J. Verschoof)
Modularization Approach
Modularization Approach and results

 Total man-hours removed from site ~ 11 Mln mhrs.

 Modular Considerations
 More engineering activities during FEED -> Use of pre-FID period.
 3D Model required for underground structures, piping & cables.
 Early engagement of Module Fabrication Yard -> Fabrication Execution Plan (incl. Fabrication
C&P tactics) being prepared.
 All Process modules fabricated in one yard, Piperacks Modules fabricated in one or several
yard(s), Consideration of “local” fabrication Yards (Vancouver, Edmonton) for “smaller”
modules & Piping pre-Fabrication.
 Consideration to modularize GTs were initiated during the BfD phase, further studies will be
undertaken during FEED to reach final decision.
 Fabrication, Shipping and installation sequence in line with the Constructability Review
conducted allowing for out of sequence delivery.
Modular Layout
 COASTAL GAS LINK PIPELINE

34 11/25/2019
35 11/25/2019
RTA Port Development - Execution Strategy (Jan, Dyo)

 Scope delivered to a different owner - RTA

 Separate project team, and separate EPC(M)
contractor (not with LNG consortium)
 The schedule: deliver the replacement barge berth Q3
2017 and the new wharf (Terminal C South) Q3 2018
 RTA will apply for main permits and the RTA port
development team will apply for secondary permits.
 With RTA a number of development phases have
been agreed :
 Ph 1: Design Basis, Data Collection, Functional Criteria,
Concept Design;
 Ph 2: FEED / Detailed Design;
 Ph 3: Execution and Construction;
Terminal C South  Ph 4: Hand-over to RTA.
Barge Berth
 RTA deal enforces compliance with RTA Project
Labour Agreement with Building Trades Unions, not
Laydown area
to become a precedent for LNG scope
Dredging – LNG Canada Scope
RTA Port Development - Dredging –Scope