BMD-C0024 LNG Industry Handbook Copyright © Yokogawa Electric Corporation October 2004 Internal use only : Vigilance Workshop 3

Internal use only : Vigilance Workshop 3BMD-C0024 LNG Industry HandbookCopyright © Yokogawa Electric CorporationOctober 2004

Yokogawa Electric Corporation

BMD-XXXXXCopyright © Yokogawa Electric CorporationOctober 2004

LNG Industry session

24 Nov 2004

By Fred & Beck

Yokogawa Confidentia

l

(Betchaku)


Agenda (40min)

Why, What and How (Beck, 13 min.)– Why LNG now ? --Tutorial – What’s our strengthen in LNG ? – Appeal points to customers– How we can support your LNG activities ? -- MarCom Plan

Tools (Beck, 15 min.)– LNG promotional CD 10 min

– Tier3 presentation kit 5 min

Action Plan @YEA (Fred , 10 min.)– Target & Strategy

Wrap-up , Q&A (Beck, 2 min)


Agenda (40min)







Why LNG in short

Commercial --- The long term promising Market

Technical --- Safety , Turn-Key , and robustness

Totally fits to Yokogawa’s competence !

• Reliable products • Long term experiences• Globe-wide service network


Blooming and solid growth

Driving factors Rapid increasing of energy demand in world wide Environment friendly Sustaining various energy channel

from national security points of view Price gap shrinking between crude oil and LNG Drastic TCO reduction by technology innovation


2002

2010

2015

0

500

1000

1500

2000

2500

Driving factors 1/5

1. Electricity consumption by power plant sources• Significant growth. 4.4%@year• Gas will account for 25% of global energy use by 2015.

Source: Energy Information Administration / Annual Energy Outlook 2004

(year)

(billion kilowatt)

Gas Coal

Nuclear

Other

4.4%@year

1.5%@year

0.3%@year

2.5%@year


LNG Industry Spending Forecast

Driving factors 2/5


Driving factors 3/5

2.Strong import demands (Regasification)

• Europe & USA --Peak shaving (buffers) 　 + Environmental issues

• Japan & South Korea

--Continuous solid demands + Energy shift policy• China & India

--Rising big consumers ,Huge potential market India – Hazira(Shell,Total) etc

　　　　　　　　　　　　　　　　　　China – Guangzhou(BP) etc


Driving factors 4/5

3.Drastic TCO reduction by Technological innovations• Less CAPEX per capacity in Liquefaction

enhances price competitiveness to other energy source (Efficiency improvement)


Driving factors 5/5

3.Drastic TCO reduction by Technological innovation• Less Building cost of LNG carrier

stimulates more import demands


Coming opportunities till 2007

Liquefaction Plants --37 new trains announced.--Approx. 128 million tpy of additional output.--Associated CAPEX is up to $20 Billion. 97% increase.

Regasification Terminals --41 prospects, startup dates out to 2007. --More than 181 million tpy of new capacity. --Associated CAPEX is up to $7.5 Billion. 53% increase.

LNG Carriers --69 new carriers to be built. 61 in Asia.--Associated CAPEX is up to $11 Billion.62% increase.

Source: Lukens Energy, Ltd.


Source: LNG One World & Mizuho Bank

29%

27%

25%

57%

10%

LNG Terminals: Asia Pacific


10%

30%

43%

Joined since Plant Ⅲ


LNG Terminals: Middle East


Cartes　-　PlanisphŠre

Pour　r‚cup‚rer　le　symbole,　taper　"Alt　A"

Montoir

Barcelona

Cartagena

Huelva

Fos 1

Panigaglia

Existing Regasification Plant

Marmara

Revithoussa

Zeebrugge

Arzew

Marsa ElBrega

Nigeria

Trinidad

Middle EastExisting Liquefaction Plant

Skikda

Norway

Plant Projects/Expansions

Egypt

Angola

Venezuela

LNG Regasification Project

Sines

Lebanon

Izmir

Offshore Rovigo

Le Verdon

Sagunto

BilbaoFerrol

Brindisi

Isle of Grain

Fos 2

Total Consumption EU 2010>70 bn cm

(>15% of imported supply)

2010 - LNG opportunities in Europe


Port　Arthur　(Sempra)

U. S. Gulf Coast Summary

2004　–　4　Projects　(2　M.A.)2005　–　3　Projects　2006　–　6　Projects　(3　M.A.)2007　–　1　Project

Total – 14 Projects (5 M.A.)

NamePermitting

Status

Sendout Capacity (Mcfd) FEED EPC

Energy Bridge (3) Complete 500 Altamira Complete 650 ICA

Fluor/IHIICA Fluor

Port Pelican Complete 1,000 AK / Fluor AK/Fluor Zachry

Freeport LNG Complete 1,500 TechnipMain Pass Energy Filed 3/04 1,000 UnknownCameron Complete 1,500 KBR Sabine Pass Filed 12/03 2,600 BV BechtelCorpus Christi Filed 12/03 2,600 BV BechtelCompass Port Filed 4/04 1,000 Golden Pass Prefiling 1,000 KBRIngleside Prefiling 1,000 Black & Veatch

Pritchard

Gulf Landing GOM Offshore LNG

Filed 1/04 1,000 TBD

Vista del Sol L NG Prefiling 1,000 KBRPort Arthur 1,500

Main　Pass　(McMoRan)

Sabine　Pass　(Cheniere)

Cameron　(Sempra)

Ingleside　(Occidental)

Compass　Port　(Conoco　Phillips)

Golden　Pass　(Exxon　Mobil)

Gulf　Landing　(Shell)

Corpus　Christi　(Cheniere)

Vista　del　Sol　(Exxon　Mobil)

Actual Gulf Coast Summary

Total – 13 Projects (8 M.A./YHQ)

Active LNG Terminal Projects – U.S. Gulf Coast

Port　Pelican　(Chevron　Texaco)

Freeport　LNG　(Freeport)

Energy　Bridge　(Excelerate)

Altamira　(Shell)

Automation System Purchase

2004

2005

2006

2007

Major　Account

To　Major　Acct.

Intracompany

Award　to　Comp


Ocean　Cay　(AES)

Actual West Coast/Caribbean Summary

Total – 7 Projects (3 M.A./YEF)

U. S. West Coast/Caribbean Summary

2004　–　1　Project2005　–　4　Projects　(1　M.A.)2006　–　4　Projects

Total – 9 Projects (1 M.A.)

NamePermitting

Status

Sendout Capacity

(Mcfd) FEED EPCOcean　Cay 842 CBICosta　Azul Complete 1,000 FWC 　Calypso Complete 800 TGEMar　Adentro　de　BC

Filed　12/03 750 Bechtel/KBR

Crystal　LNG Filed　1/04 1,300 OPESound　Energy　Solutions

Filed　2/04 1,000 KBR KBR

Cabrillo　Port Filed　1/04 1,500Sonora　LNG Prefiling 1,300 UniversalLazaro　Cardenas 500

Active LNG Terminal Projects – West Coast/Caribbean


2004

2005

2006

2007

Major　Account

To　Major　Acct.

Intracompany

Award　to　Comp

Sonora　(DKRW)

Sound　Energy　(Mitsubishi)

Cabrillo　Port　(BHP)

Lazaro　Cardenas　(Repsol)

Costa　Azul　(Sempra)

Crystal　(Crystal　LNG)

Mar　Adentro　(Chevron　Texaco)

Calypso　(Tractebel)



Prince　Rupert　(WestPac)

Rabaska　(Gaz　Metro)

Bear　Head　(Access　N.E.)

Canaport　(Irving　Oil)

Crown　Landing　(BP)

Active LNG Terminal Projects – Northeast U.S. & Canada

2006　–　2　Projects2007　–　1　Project2008　–　2　Projects

Total – 5 Projects

Name Permitting

StatusSendout

Capacity (Mcfd) FEED EPCCanaport Filed　3/04 500Crown　Landing Prefiling 1,200 CBI CBIBear's　Head Filed　3/04 1,000Rabaska Planned 500Prince　Rupert Planned

Northeast U.S & Canada Summary


2004

2005

2006

2007

Major　Account

To　Major　Acct.

Intracompany

Award　to　Comp


Agenda (40min)







What’s customer’s requirement ?

Totally fits to Yokogawa’s strengthen ?

A)Combat-proven experiences & applications

B)Broader portfolio of solutions

C)The lowest TCO and cost competitiveness

D)Globe-wide commitment

YES !

We are

the

best !


Back

A) Combat-proven (Experiences)

Yokogawa’s over 30 years LNG experiences– In 1968 first LNG terminal in Japan (Negishi)– In 1972 first computer control system for LNG terminal at Chiba

(Sodegaura) – Development on full automation algorithms / functions

First DCS Release into the Business Area– In 1975 release of CENTUM ,

the world’s first DCS– De-Facto standard for control

system is Yokogawa


Regasification

58%

Liquefaction

36%

LNG Carrier

30

25 Trains and 63.9 MT/Y LNG are controlled by Yokogawa

25 of 45 LNG Terminals are controlled by Yokogawa

30 of LNG Carriers are controlled by Yokogawa

A) Combat-proven (Presence)


B) Broader portfolio of solutions

Integrated　LNG　Terminal　Automation　Solutions

　CENTUM　CS-3000　Distributed　Control　Systems

　　Analytical　Systems

　ProSafe　High　Availability　Safety　Systems　　FieldEye　CCTV　Systems

　　Field　Instruments


South Hook

　　

4 additional ExxonMobil LNG Terminals are awarded !

Why ExxonMobil chooseYokogawa? – Competitive Pricing

• Rated “Best-in Class”– Technology

• Rated “Best-in Class”– Reliability

• Rated “Best-in Class”– LNG Experience

• Rated “Best-in Class”– MICC Capabilities

• Rated “Best-in Class”

C) The lowest TCO and cost competitiveness


　　　　　　　　　　　　　　　　Existing　Trade　&　　　　　　　　Current　opportunities　　　　　　　　　　　　　　　　　Prospective　by　2015　　　　　　　Coming　opportunities

　　　　　　　　　　　　　　　　Existing　Trade　&　　　　　　　　Current　opportunities　　　　　　　　　　　　　　　　　Prospective　by　2015　　　　　　　Coming　opportunities

Diversifying of LNG business requires global-networked suppliers

D) Globe-wide commitment


Agenda (40min)







Japan USAEurope

LNG Global Team

Constantine Lau

John van der Geer

Loke Chee Yeong

Dennis

Hockenbury

YHQ: Shigetsugu Betchaku(Beck) , Toshitake Minami

YCA: Constantine Lau , Dennis Hockenbury

YEA: Fred San , Loke Chee Yeong

YEF: John v.d. Geer , Marcel Kelder , Ger v.d. Oosten

YAU : Lindsey Hadland

YSA: Augusto Perreira

YTW: David Tsai

LNG Networking

Marcel Kelder Shigetsugu

Betchaku

(Beck)

Asia-Pacific, ME

Fred San


Marketing Process & Deliverables

The sales funnel

After sales commitment

Applications History

OpportunityPresence

Liquefaction

LNG Carrier

Regasification

New order!

Eng./ Services

Attract– Advertisement

• Industry ads, solution ads– Direct Marketing

• Promo CD – Public Relations

• Magazine ,articles, success stories– Events

• Gastech 2005– Web

• Industry web pages

Interact– Demos– Sales tools

• Internal handbooks• Bulletins• White papers • Tier3• Reference lists

Retain– Project execution & lifecycle support

• Engineering KM network

Network– User groups

• Periodic meeting, e-Update

Global LNGTeam

To attract

Promo CD

To interact

Tier3 Sales tools


Schedule

7 8 9 10 11 12 1 2 3 4 5 6

2004 2005

Ads

Direct MktgPublic Rela

Event

Sales Tools

Web

Demos

Rollout

Tier3 Slide

Ads (Europe)

Ads (USA)

Launch (Global)

Gastech (Spain)

Bulletin

Enhance (Global)

Success StoriesNews article(O&M)

Gastech (Spain)

Users Meeting(TBD)

Promo CD

Whitepaper


Agenda (40min)







About Promotional CD

Primary purpose– Attract potential customers towards interact phase– Ensure customers that “VigilantPlant is real.” in LNG

industry

1st dynamic deliverables under VigilantPlant concept– Test bed if this deliverables work well for other industries

Primary usage – Hands-out to (potential) customers – Deliverable at Exposition

and/or User Group Meeting

Remarks– Draft-base as of now– 1st Launched at Gastech March 2005 or earlier


Revolution in Military Affairs (?)

Before – No reconnaissance – No air cover – No artillery fire– No grenade launcher– “Just go for break !! ”


Revolution in Military Affairs (?)MarCom Affairs

Here you will get ! – No reconnaissance – No air cover – No artillery fire– No grenade launcher– “Just go for break !! ”

– Gastech 2005– Whitepaper ,Web and Ads– LNG Promotional CD– LNG Tier3 sales tool – “Just do it !! “


Agenda (40min)



– Tier3 presentation kit (Another file) 5 min




Agenda (40min)







Action Plan @YEA

Our Targets.

1. PTT – US$ 2.95 Billion Capital Investment in Gas Business for 2004 – 2008.

2. Brunei Shell Petroleum – Gas Compression Project in Q2 2005

3. Brunei LNG – DCS Revamp ~ 2006 ( Invensys installed Base)

4. Malaysia LNG – DCS Revamp ~ 2007 ( Invensys installed Base)


Action Plan @YEA

Our Successes.

1. Bontang LNG, Indonesia

2. P.T. Arun, Indonesia

3. PTT GSP 1 to 5, Thailand


Action Plan @YEA

Our Strategy.

1. Review Overall LNG Market Potential in our region up to 2010.

2. Develop a LNG Marketing Plan with the support of local Office.

3. Document our Application Know-how that we have acquired from past projects and publicize this.

4. Investigate the possibility of developing a “Total Solution Package” with SGSI who have an abundance of User application know-how.

5. Increase our presences in regional trade shows and conferences.


Expectations to you

Have a look at draft of Promo CD and give comments by 7 Dec

• Lynn has a test version• NOT to show customers until official release

Let us know topics and approved success

stories for Handbook and Tier3 • E-mail to Loke ,Fred & Beck

Let’s expand your LNG business ! Opportunities is here !!


Thank you for your attention.

Commitment means building the future to last.


Agenda (40min)







For internal purpose only

Other References


Library (1)

Global Maps of LNG Export and Import Facilities with Oil Majors ownership

As of Nov 2004


Crown Landing◆


LNG Terminals: North America


37%


LNG Terminals: Carribean & South


36%

12%

15%


LNG Terminals: Africa


33.5%


LNG Terminals: North Europe



LNG Terminals: South Europe & Mediterranean



LNG Terminals: Japan ,South Korea

Documents

BMD-C0024 LNG Industry Handbook Copyright © Yokogawa Electric Corporation October 2004 Internal use only : Vigilance Workshop 3