Technical Developments:

New technologies for a changing LNG environment

GIE Annual Conference, Krakow, May 25, 2012

Hugues MALVOS GIIGNL TSG Secretary

Hugues.malvos@gdfsuez.com

Presentation of GIIGNL

• The International Group of LNG Importers, known by its French acronym GIIGNL, is a non-profit organisation established in Paris in 1971

• GIIGNL presently has 68 member companies from 21 countries of Asia,

Europe and the Americas • GIIGNL is unique in the industry in that it groups nearly all companies in the

world active in the import and regasification terminalling of LNG • The aggregate competence and experience of members, as represented in

the General Assembly / Executive Committee and in the Technical and Commercial Study Groups, have the highest standing in the industry

• Membership has evolved in line with the development of the LNG industry

and consists of companies either solely active as LNG merchant, solely active as LNG receiving terminal owner/operator or active in both businesses

• Minimum activity threshold levels apply for eligibility

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Objective

• GIIGNL’s main objective is to study and promote the development of activities related to LNG: purchasing, importing, processing, transportation, handling, regasification and various uses of LNG

• The Group aims to provide an overview of and reports on the state-of-the

art technology in the LNG industry and its general economic state

• GIIGNL promotes the exchange of information and of experience among its members to enhance the safe ,reliable, efficient and sustainable operation of LNG import facilities, to improve contractual techniques, to develop positions to be taken in international agencies, etc.

• Strict compliance with competition law is adhered to in GIIGNL’s proceedings

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Organisation

An Executive Committee, composed of 4 members per region is elected by the General Assembly

Two Standing Study Groups: Technical (TSG) and Commercial (CSG)

TSG: Chairmanship GDF SUEZ ; 31 members

Chairman / Secretary: Bénédict Weiss / Hugues Malvos

CSG: Chairmanship BG ; 31 members

Chairman / Secretary: Anita Odreda / Liah Ahmad

Protocol for Coordination of Activities and Information Exchange among LNG Organisations

Protocol members: EUROGAS, GIIGNL (coordination), GLE, IGU, SIGTTO

www.giignl.org

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President

Jean VERMEIRE

Vice President for Asia

Tsuyoshi OKAMOTO

President ,Tokyo Gas Company, Ltd.

Vice President for Europe

Jean-Marie DAUGER

Executive Vice President , GDF SUEZ

General Delegate

Jean-Yves ROBIN

Vice President for the Americas

Martin HOUSTON

Executive Director, BG Group plc

Which place for LNG in the future gas chains?

Get access to new gas

supply sources

Transformation&

transportation

Alternative /

Emerging gas uses

Access new gases supplies

Transmission Alternative/ emerging gas uses

Conventional gases

Unconventional gases

LNG Gaseous

form: Pipe/CNG

Artificial hydrates

Tigh

t G

as

Shal

e G

as

Co

al b

ed

met

han

e

Nat

ura

l h

ydra

tes

Retail LNG Gas to Wire

GTL

Fisher Tropsch

DME

Larg

e si

ze

Stra

nd

ed g

as

Ass

oci

ated

gas

Offshore Onshore

Subsea FLNG

Methanol MTO

LNG as fuel

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Unlock technical barriers for floating LNG projects

Assessing availability of marine operations to perform LNG transfer

Selecting adequate LNG transfer system technologies

Cargo Contain System - BOG production - Sloshing

Assessing gas dispersion to help on vent design

FERA, QRA, CFD simulations on safety

Unlock technical barriers for floating LNG projects

Jettison

Offloading availability model

CFD Simulations 7

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Unlock technical barriers for floating LNG projects Cargo Contain System

Selecting adequate Cargo Contain System: e.g. single row vs two row

Sloshing risk

Assessing Boil Off Gas production

Assessing gas dispersion to help on vent design

Sloshel User Group

Standing wave

Progressive wave

40 % H

H

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Sloshel User Group

Cryogenic flexible hoses Articulated hard arms

Source : Technip Source : Technip

Submerged Aerial

Transfert

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Floating Aerial

Unlock technical barriers for floating LNG projects LNG transfer system technologies

Transfer systems and naval architectures Side by side

Side-by-side transfer

Same configuration as LNG

carrier moored to a jetty

Suitable for benign sea

conditions only

Technip

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Excelerate / Exmar with Gutteling hoses

Shell

Transfer systems and naval architectures Floating or submerged tandem

Tandem transfer

Inspired by oil industry practice

(30 years experience)

Usable in harsh sea conditions

Several possible configurations

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SBM concepts

Technips concept

Transfer systems and naval architectures Aerial tandem

Eurodim - Technip

Dunlop (Bluewater)

FRAMO - Nexans

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SBM

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Unlock technical barriers for floating LNG projects LNG transfer system technologies

Guiding

devices

Flexible

hose

Emergency

Release

System

Quick Connect/

Disconnect

Coupler Connection

winch

Spool piece

connected to the

LNG carrier

manifold

Gutteling hoses ALLS trials / Montoir terminal

SBM COOL System Framo/Nexans OCT system

ALLS trials / Montoir terminal

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Optimizing LNG chains Meeting LNG market needs

STAGE©: optimizing LNG supply chain efficiency

Companies face the challenges of seizing opportunities for spot cargoes,

minimizing operational costs and using all assets as effectively as possible

CARGO©, MOLAS©: Being able to predict LNG ageing onboard LNG carriers and

its composition at unloading points is a precious advantage for shipping

management and LNG trading

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New challenges : LNG Carriers

LNG and NG quality

Onboard Analysis System

Evaluation of the link between BOG quality and propulsion system efficiency

Air emissions (NOx, SOx, CO2)

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ECA : Emission Control Areas

Truck using LNG as fuel (Enviro Express)

Green ferry project in the Netherlands (Cofely, Electrabel)

LNG truck loading station (GDF SUEZ NA)

A new market

Retail LNG LNG as Fuel

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Innovation for a new market: LNG as fuel

Ship-to-ship transfer A innovative solution to be developped for bunkering operation A transfer procedure to be approved by classification society

LNG quality / Methane Number: a key parameter for engine combustion with LNG

Promoting a global method for commercial transaction Studying a control process to guaranty LNG quality for engine

Offshore Onshore

Refueling/filling stations Development of a generic solution

Truck-to-ship transfer

A transfer procedure for harmonization in Europe

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Opportunities in monitoring systems

Gas Quality Nano Gas Chromatography

HHV, Sulfur, … -80% CAPEX / -25% OPEX

low maintenance, low consumables

Gas emission Long-range & low-level detection and quantification of natural gas emission

(nano-pulsed laser)

Activities of the Technical Study Group

Main current and recent topics of study:

• Compatibility of LNG Tankers & Terminals

– SIGTTO/GIIGNL Information Portal for LNG terminal and ship data, www.lngterminalinfo.org

for first pass ship-shore compatibility screening

• Information on LNG Safety Standards and Industry Safety Record

- Provision of 7 information papers on public area of website www.giignl.org

• Database of LNG Incidents & Near-misses

• LNG Custody Transfer Handbook ( 3rd edition 2010)

• Overland Transportation of LNG by Truck and Rail (updated)

• Emissions to the Environment from LNG Import Terminals

• Security Equipment and Systems at LNG Facilities

• Quality and Compatibility of different LNG Sources (update in progress)

• Predictive Maintenance at LNG Import Terminals

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Papers and reports presented by Members

Sample of most recent subjects:

- Review of a-typical regas terminals

- LNG industry production performance

- CO2 emissions in the LNG industry

- Developments of construction costs of liquefaction and regas facilities

- Developments in offshore LNG facilities

- Gas quality specifications for transmission and acceptability of LNG

- Marine transport of Compressed Natural Gas

- Stratification and rollover potential analysis for extreme LNG quality

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The “GIIGNL LNG Custody Transfer Handbook” is widely used for the purposes of title transfer in commercial transactions and describes the equipment and procedures for accurately measuring the thermal energy of LNG which is bought and sold. The recently completed third edition includes new technology, updated standards and new modes of operation, e.g. re-loading of cargoes at receiving terminals.

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Available on the public area of

GIIGNL website, free of charge

www.giignl.org

Major Publications

Potential next steps: - Ship to Ship Transfer (Offshore) - Small Scale Transfer (LNG as fuel)

Major Publications

“The LNG Industry”, an annual compilation of the basic statistics of the LNG trade, providing data of LNG quantities traded, short and long term contracts concluded and extensive information about liquefaction plants, regasification plants and shipping. The data in the report are submitted by members of GIIGNL.

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Available on the public area of the website www.giignl.org and in printed form, free of charge

Thank you for your kind attention

Hugues MALVOS GIIGNL TSG Secretary

Hugues.malvos@gdfsuez.com

www.giignl.org