01 05 Justin Capouch CBI Presentation
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By: ,
By: ,
17th INTERNATIONAL CONFERENCE & EXHIBITION
ON LIQUEFIED NATURAL GAS (LNG 17)
Freeport LNG Liquefaction Project
By: Justin Capouch, CB&I
April 16, 2013
17
th
INTERNATIONAL CONFERENCE EXHIBITION ON
LIQUEFIED NATURAL GAS (LNG 17)
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A World of SolutionsTM 2
Introduction
Freeport LNG Regasification Terminal
Brazoria County, Texas, USA
2.0 Bcf/day send-out capacity
Proposed liquefaction terminal
Will be 2nd LNG export terminal in
“lower 48” states
Export capabilities up to 1.9 Bcf/day
Approximately 1% of U.S. tradedeficit
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A World of SolutionsTM 3
History
Freeport LNG Regasification Terminal development initiated in the early 2000’s
US gas supplies were dwindling
Large quantities of LNG imports expected by the late 2000’s
Freeport engaged a joint venture of Technip, Zachry, and Saipem
Construction began in 2005 and was completed in 2008
Commissioning cargo was received and the performance test was performed
Since then, Freeport’s customers have only used the facility for storage and
re-export
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A World of SolutionsTM 4
Market Conditions
Natural Gas Production by Source
(trillion cubic feet)
Surplus of U.S. natural gas reserves
because of Shale accessibility The US now has more than 100 years of
natural gas supply.
Lower gas prices long term make exporting
natural gas economically attractive.
Significant difference between lower US
gas prices and higher international crudeoil-linked gas prices expected to remain
long into the future.
LNG buyers interested in diversifying
supply and linking price to Henry Hub.
Freeport LNG proximity to:
Eagle Ford, Barnett, Haynesville-Bossier
deposits
Houston ship channel and Katy trading
Hubs
U.S. Natural Gas Pipeline Network,
2009
Source: EIA, Office of Oil & Gas, Natural Gas Division, Gas Transportation Information System
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A World of SolutionsTM 5
Health Safety & Environment
Freeport LNG is committed to HSE as a Core Value
Zero injuries since start up of the facility in 2008Ongoing training to identify and mitigate hazards
CB&I and Zachry are also committed to HSE as a Core Value
People and the Environment are our most valuable asset!
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A World of SolutionsTM 6
Environmental Challenges
Concern Mitigation
Erosion from ship traffic Recycle usable vegetation and replant along
waterway to decrease erosionDestruction of plants in construction path
Increased construction traffic
Work only during limited time frames to
minimize impact.
Bussing employees to the island
Waterway contamination from equipment
spills
Diligent equipment maintenance and spill
prevention procedures
Plant NoiseDetailed Sound studies to reduce impact of
louder equipment
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A World of SolutionsTM 7
Existing Terminal
Two full containment 160,000 m3 (1
million barrels) LNG storage tanks
Seven vaporizer trains capable of
delivering 2.0+ Bcf/d of gas to intrastate
pipeline connections
Unique ambient air heating system to
substitute fired heaters during warmweather periods
State-of-the-art marine dock facility to
accommodate largest LNG tankers built
Nine miles of 42-inch pipeline totransport gas to pipeline connections at
Stratton Ridge
Underground gas storage cavern at
Stratton Ridge (4.5 Bcf of working gas)
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A World of SolutionsTM 8
Expansion to Liquefaction
Freeport LNG is well suited to develop a
liquefaction project.
A financially strong company with
proven, experienced operating and
management organizations.
Utilization of FLNG’s existinginfrastructure represents an
advantage of lower capital and
operating costs compared to a grass
roots facility.
The FLNG terminal will be able toreact to domestic and global gas
market fluctuations to
import/vaporize or liquefy/export.
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A World of SolutionsTM 9
Facilities for Expansion
Gas Pretreatment
Liquefaction
Additional LNG Storage
2nd LNG Loading berth
Additional Boil Off Gas Handling
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A World of SolutionsTM 10
Pre-Treatment Facility
Metering
Inlet Reception
and Mercury
Removal
CompressionAcid Gas
Removal
Dehydration Compression
Feed Gas
from
Pipeline
Treated Gas to
Liquefaction
NGL Product to
Pipeline
NGL Removal
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A World of SolutionsTM 11
Liquefaction
MAIN CRYOGENIC
HEAT EXCHANGER
TREATED
GAS
APCI C3MR Liquefaction Process
1.9 Bcf/d of
natural gas.
Three propane
pre-cooled mixed
refrigerant trains
4.4 mtpa
per Train
13.2 mtpa in
aggregate
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A World of SolutionsTM 12
Terminal Transition
Liquefaction technology: AP-C3MR (Air Products – Propane and
Pre-cooled Mixed Refrigerant)
Air Cooled, Electric Motor Drive Refrigerant Compressors
Vessel Traffic: 200 Ships per year
About 700MW of power
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A World of SolutionsTM 13
Challenges – Land Acquisition
Leased 170 acres adjacent to the current plot
Purchase of land adjacent to the existing pipeline for
the pre-treatment facility
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A World of SolutionsTM 14
Challenges – Engineering Design
Soil Conditions on Liquefaction Site Dredge Material Placement Area
Extensive geotechnical studies performed
All foundations will require piles
Potential Storms All facilities designed to withstand a
category 5 hurricane event
All facilities grade levels set abovepotential storm surge
Electrical System Design Working with Center Point
for robust supply
75 MW motors Variable speed drives
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A World of SolutionsTM 15
Regulatory Status
Regulatory Agency Review Basis Submission
Federal Energy Regulatory Commission (FERC) Environmental impact – requiredfor construction
Department of Energy (DOE) Trade to non-FTA countries
U.S. Department of Transportation (DOT) Safety, location, traffic
Other Federal, State and Local agencies Varies
Source: FERC, Office of Energy Projects 2/21/2013
North American LNG
Import/Export
TerminalsProposed/Potential
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Community Involvement
Freeport LNG developed a good relationship with the local community
during the construction of the existing terminal
Freeport LNG has held
several open house
meetings to inform the
public of its future plans
and regularly keeps in
touch with the local
community elected officials
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A World of SolutionsTM 17
Project Status
Liquefaction tolling agreements for Train 1volumes with Osaka Gas and Chubu Electric
executed in July 2012
Liquefaction tolling agreements for Train 2
volumes with BP executed in February 2013
Negotiating with potential customers for
Train 3 volumes
Completing FEED EPC Execution Plans near completion
Arranging financing for the first two Trains
Responding to data requests from FERC
1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th
Feed Agreement
Formal FERC Application
FEED Completion
DOE Export Ruling
EPC Proposal
FERC Approval
EPC Notice to Proceed
Commence Construction
Train 1 Operation
2012 2013 2014 2015 2016 2017
Freeport LNG Liquefaction Project Schedule
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Future Liquefaction Facility