Shell Global Solutions

Liquefied Natural Gas Plants: Designing for the Future

22nd World Gas ConferenceMonday, June 2, 2003

Ad Smaal

Agenda

1. LNG global trade: outlook

2. Past development of LNG technology

3. Innovations in LNG plant design

4. Conclusion

Result of decades of growth

10 Mtpa import

10 Mtpa export

Alaska (USA)

Algeria Libya

UAE

Qatar

Brunei

Indonesia

Malaysia

Australia

NigeriaTrinidad

Oman

USA

Belgium

France

Italy

Spain

Turkey

Greece

Japan

Korea

Taiwan

Puerto Rico

LNG trade in 2002

LNG trade: 5~7 % growth expected

Multitude of exporters, global market

0

20

40

60

80

100

120

140

160

180

200

1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008Year

Expo

rt (M

tpa)

VenezuelaRussiaNorwayEgyptOmanNigeriaTrinidadQatarAustraliaMalaysiaIndonesiaUAEBruneiLibyaUSAAlgeria

Development of LNG technology (I)

State of the art:Two-cycle Propane-MR

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005Year

Trai

n ca

paci

ty (M

tpa)

Algeria USA LibyaBrunei Indonesia Abu DhabiMalaysia Australia QatarTrinidad Nigeria Oman

Malaysia Tiga

Development of LNG technology (II)

Existing plants New-built plants

2002 (Mtpa)

104.9

4.3 3.9 3.0

Propane-MRCascadeTechnipPrico

27.9

9.0

14.9

6.5

14.2

3.0

9.5

Propane-MRCascadeSplit-MR3-cycleAPXDMR?

2010 (Mtpa)

Diversification of liquefaction processes

Technology drivers: size, efficiency, cost

MLNG-Tiga (‘99)

0.20

0.30

0.40

100 250 400

tonn

e C

O2/

tonn

e LN

G

Oman LNG T1/2

Other recent projects

Sakhalin

USD/tpa LNG (Middle East Reference 2000)lowest specific capex, lowest CO2 emissions

Benchmark• 3.5 Mtpa• <200 $/tpa, 92% efficiency

Innovation: Integration with upstreamFloating LNG

+

Opportunities for integration:• Wet transport / unmanned platform• Floater• Condensate stabilization

Innovations in LNG train design

Two cycle

Equipment count per train

Process development

100

50

OmanC3/MR

SakhalinDMR

Equipment count per train

Process development

100

50

Other recent Greenfield

OmanC3/MR

SakhalinDMR

C3-MR, Split-MRDMR

Three cycle

PMR

CascadeMFCPAP-X

• Further economy of scale: reduce equipment count• Stimulate competition: parallel key equipment

Many different ways to drive down costs

Portfolio of Solutions

3 4 5 6 7 8Capacity (Mtpa)

Spec

ific

Cap

ex ($

/tpa)

200

DMR

C3/MR

Three driverprocesses

GameChanger

Operable solutions in the 3 – 7 Mtpa range

Conclusion

• 5 to 7 % annual growth in LNG trade expected to 2010

• Wide variety of new plants, continued cost drive

• Various alternatives to Propane-MR two-cycle

• Key: Operable LNG solutions in 3 to 7 Mtpa range