GE - Modularity - Rice E&C 17, 2016 · Module to Pipe Rack Connection ... Coal and Pipe • Seeking changes in contract mix ... GE - Modularity - Rice E&C Author: 210055666

Modularization

H = 17 peopleH = 1.5 people

© 2016 General Electric Company - All rights reserved

LNG Plant DesignGas Processing and Liquefaction

Compression (if required)

Gas Sweetening:

• CO2 removal < 50 ppm

• H2O removal < 1 ppm

• H2S removal < 5 ppm

• Hg, BTEX, Mercaptan, Benzene Removal

Gas processingLiquefaction

Multiple LNG refrigeration processes

• C1 EXP – comp/exp boil off gas refrigeration

• N2 – comp/exp nitrogen refrigeration

• PCMR – pre-cooled mixed refrigeration

• SCMR – single cycle mixed refrigeration


November 17, 2016 3

What is a Module?


Mega module solutions

November 17, 2016 4


“Plug-n-Play” solutions

November 17, 2016Presentation Title 5


Plant Installed

November 17, 2016 6

Fabrication Facilities


Fabrication in-house and with GE qualified 3rd parties

GE Schertz, TX GE Avenza, Italy

GE Massa, ItalyMultiple other locations

- U.S.

- China

Modular Design & Fabrication


Manufacturing Process

• Modules are setup, leveled, pumps aligned & vessels set

• Modules are then fitted, welded and assembled

• All welds and assembled lines go through a thorough inspection

10


Piping and Assembly

11

Piping is spooled, tested, and cleaned – ready for module assembly. Valves and instrumentation are fit and installed to specification.


Insulation, Paint & Instrumentation

12


Module CompletionLNG Plant Refrigerant Compressor - Assembled and Ready for Testing

13


Module Completion

Modular Installation


Module Foundations


Module Leveling


Module to Pipe Rack Connection


Plug-n-Play set-up

Pipe rack and equipment

modules installed and electrically

connected


Plug-n-Play LNG Train Assembly

20


Site InstallationRigging and Setting of Modules

Markets


Introduction to LCO2 Market

What is Carbon Dioxide ?

• Carbon dioxide is a colorless and odorless gas vital to life on Earth. This naturally occurring chemical compound is composed of a carbon atom

covalently double bonded to two oxygen atoms. Carbon dioxide exists in Earth's atmosphere as a trace gas at a concentration of about 0.04

percent (400 ppm) by volume. Natural sources include volcanoes, hot springs and geysers and it is freed from carbonate rocks by dissolution in

water and acids.

“Raw” carbon dioxide is a

stream of carbon dioxide-rich

gas that is supplied by a

producer company to a third

party liquefaction plant

without significant pre-

treatment. The suppliers of

such “raw” carbon dioxide

charge owner of the liquid for

its “perceived” value.

“Crude” carbon dioxide is astream of carbon dioxide-richgas which has had additionaltreatment or conditioning orhas had additional productioncosts such as compressionbefore or during its supply tothe pressure required by aLCO2 plant.

FEEDSTOCK OF LCOFEEDSTOCK OF LCOFEEDSTOCK OF LCOFEEDSTOCK OF LCO2

Industrial Quality – The cheapest

Carbon dioxide with a qualitylower than the specificationfor food grade carbon dioxide.It is generally used inindustrial applications such aswelding, and metallurgicalatmospheres.

Food Grade- the Norm

Used in the food and beverageindustry. Although nationalspecifications vary, mostcompanies which supplycarbon dioxide adhere to theISTB standard for food andbeverage applications

Ultra High Purity – the Most expensive

Used in the nuclear industryand in the electronicsindustry. Impurities wouldcause significant problemssuch as long half-life by-products in the nuclearindustry and functionalproblems in the electronicsindustry.

GRADES OF LCOGRADES OF LCOGRADES OF LCOGRADES OF LCO2


Merchant LCO2 Supply Chain

Source/

FeedstockProduction

FacilityDistribution Customers

LCO2 Plants

Ammonia

Ethanol

Linde

Air Liquide

Wholesale

Retail

End-user

industries


Sources: IHS, BP, Cheniere, Credit Suisse, GE elaboration

85% AVG plant load factor take into account, 5 years time to market for LNG plants

How will LNG demand evolve?EXPORT LNG DEMAND

by plant start-up date


Demand• +12.1 MTPA contracted in ‘16... 75% far east

• 7 new markets opening by ’17 ...

+180 MTPA regas capacity by ’20

• 33 MTPA expected to be decommissioned by ’30

Balance by 2020-2021...

130-190 MTPA to be FIDed in 10 yrs

BP

Cheniere

IHS

Credit

SuisseAVG. HIGHAVG. LOW

ON STREAM

U/C PROJECTS


Sources: IHS,, EIC NEWS, GE elaboration

85% AVG plant load factor take into account

How will LNG supply evolve?


Supply

1 project took FID in the past 18 months...

60 MTPA on hold or cancelled

LNG installed capacity average load factor 85%

390 MTPA of projects under development...

2/3 in North America...

35% project expansion

4-5.5 mtpa train size hot spot (50%)

Only 1 out of 3 proposed projects will take

FID by ‘25

TRAIN SIZE DISTRIBUTION

MTPA

GEOGRAPHICAL DISTRIBUTION

MTPA


EXPORT PROJECTS’ CAPACITY BY PLANT COST AND

COMPETITIVENESS ON PACIFIC BASIN MARKET

BUBBLE SIZE: PLANT CAPACITY MTPA

Who Is Who

Sources: IHS, GE elaboration

90-180 Mtpa

2

4

6

8

10

12

14

16

18

0 200 400 600 800 1000 1200 1400 1600 1800

LNG

FO

B P

rice

$/M

Btu

Plant Cost $/tpa

Atlantic Pacific

LNG business model needs to adapt to the new scenario

End-users (Utilities)

• Need lower landed price to be competitive vs.

Coal and Pipe

• Seeking changes in contract mix ... Long-term for

core demand but more short-term/spot for

variability

LNG operators (Oil companies, LNG specialists)

• Cannot afford more Gorgon-style cost/time

overruns ... need cheaper, faster projects

• Prioritizing payback over theoretical NPV/IRR

Drivers of cost re-set

• 50-70% North America

• 30+% trains <2 Mtpa

• 2/3 sponsored by midstreamers and financial

entities


Emergence of “mid-scale LNG”

Train

Capacity

(mmtpa)0.01 7.02.00.5 6.51.51.0 2.5

Gorgon LNG, 3 x 5.0 mmtpa trains0.01 mmtpa LNG plant

with GE modular liquefaction system

Mid-Scale LNG Traditional baseload LNG

Evolving solutions

• More modular fabrication

• Less site specific customization

• Repeatable designs

• Faster, leaner execution

Small scale LNG

Key Drivers

• Demand for more flexible, smaller offtakes

• Growth of LNG trading hubs

• Project-financed, developer-led export plants

• Primacy of lowest CAPEX

• Normalizing operations w/smaller offtakes


Questions?

November 17, 2016 29

Contact details:

Bob Sammon

281 921 5735

[email protected]

Documents

GE - Modularity - Rice E&C 17, 2016 · Module to Pipe Rack Connection ... Coal and Pipe • Seeking changes in contract mix ... GE - Modularity - Rice E&C Author: 210055666