cnooc cold energy utilization

CHINA NATIONAL OFFSHORE OIL CORPORATIONCHINA NATIONAL OFFSHORE OIL CORPORATIONSep.Sep. 20062006

CNOOCCNOOCLNG Cold Energy UtilizationLNG Cold Energy Utilization

OUTLOOKOUTLOOK

2CHINA-USA OIL AND GAS FORUM 2006 (Hangzhou, China)

OutlineOutline

1.1. Analysis on China import LNG Analysis on China import LNG strategystrategy

2.2. CNOOC LNGCNOOC LNG

3.3. Analysis on LNG Cold Energy Analysis on LNG Cold Energy utilization strategyutilization strategy

4.4. CNOOC LNG Cold Energy utilization CNOOC LNG Cold Energy utilization strategystrategy planningplanning

5.5. CNOOC LNG Cold Energy utilization CNOOC LNG Cold Energy utilization projectsprojects

2006ChinaCHINA-USA OIL AND GAS FORUM 2006 (Hangzhou, China)

1. Analysis on China import 1. Analysis on China import LNG strategyLNG strategy


1. China import LNG strategy analysis1. China import LNG strategy analysis1.1 China energy consumption structure analysis1.1 China energy consumption structure analysis

6.039.87

13.1116.8

20.3 22.2

0

5

10

15

20

25

1980 1990 1995 2003 2004 2005

1980-2005 China one-off energy consumption100 million ton coal


China consumption of petroleum, natural gas, Coal and total energy

300300

5050

21.421.4

22.2522.25

310310

40.840.8

19.219.2

20.3220.32

275.2275.2

32.832.8

16.416.4

16.816.8

246.9246.9

29.629.6

13.713.7

14.814.8

232.2232.2

27.827.8

12.712.7

13.513.5

Petroleum Petroleum ((million tonmillion ton))

Natural gas Natural gas (10 billion m(10 billion m33))

CoalCoal(100 M std Coal(100 M std Coal))

totaltotal100 M std Coal100 M std Coal

2005200520042004200320032002200220012001

China production of petroleum, natural gas, Coal and total energy

298298

49.949.9

21.121.1

20.6320.63

292292

40.840.8

19.5619.56

18.4618.46

271.3271.3

34.434.4

16.6716.67

18.8418.84

247.8247.8

32.732.7

13.813.8

13.813.8

228.4228.4

30.330.3

11.611.6

12.112.1

Petroleum Petroleum ((million tonmillion ton))

Natural gas Natural gas (10 billion m(10 billion m33))

CoalCoal(100 M std Coal(100 M std Coal))

totaltotal100 M std Coal100 M std Coal

2005200520042004200320032002200220012001

1. China import LNG strategy analysis1. China import LNG strategy analysis1.2 1.2 China energy consumption and production


Country Reserve

108M3

Output

108M3

Industrial

user%

Electri

%

Household

%

Others

%

UK

2002 6966 1081 16.55 29.78 34.34 19.33

USA

2002 51950 5704 34.74 26.64 26.64 11.98

2003 24500 339

2005 645 28.5 22.8 28.2 22.6

2010 1121 23.4 30.2 28.5 17.9

2015 1850 20.6 33.9 33.4 12.1

China

2020 2517 19.4 36.7 33.7 10.3

1. China import LNG strategy analysis1. China import LNG strategy analysis1.3 forecast on China energy consumption and production1.3 forecast on China energy consumption and production


-20.0040.0060.0080.00

100.00120.00140.00160.00

1980 1990 1994 1995 1996 1998 1999 2000 2001 2002 2003

GDP(RMB 10B) total energy consumption(Mtce)

1. China import LNG strategy analysis1. China import LNG strategy analysis1.4 1.4 Analysis on interrelation of GDP growth to energy

China unit power consumption is 2.4 times higher than that of woChina unit power consumption is 2.4 times higher than that of world average in 2004,rld average in 2004, 3.6 3.6 times of USAtimes of USA4.9 time of Germany4.9 time of Germany4.4 time of Japan4.4 time of Japanand 1.6 time of Indiaand 1.6 time of India

China unit power consumption to produce I USD GDP is 11.5 times China unit power consumption to produce I USD GDP is 11.5 times higher than higher than JapnJapn, 7.7 , 7.7 times than times than francefrance and Germany, 5.3 times than UK and more than 4 times than USA.and Germany, 5.3 times than UK and more than 4 times than USA.


ChinaChinas strategys strategy of improving energy structureof improving energy structure

lower down energy costlower down energy costaccelerate on building up economize societyaccelerate on building up economize society

Find resources from multiple channels, strengthen effort toFind resources from multiple channels, strengthen effort to develop domestic develop domestic resources, meanwhile trying to have external resourcesresources, meanwhile trying to have external resources

Analysis on reasons for import LNGAnalysis on reasons for import LNG LNG has strategy meaning for ChinaLNG has strategy meaning for China adjusting energy structure adjusting energy structure

LNG has peak shaving benefit to China domestic NG resourcesLNG has peak shaving benefit to China domestic NG resources

LNG as strategic reserve for China energyLNG as strategic reserve for China energy

LNGLNG as a environmental friendly energyas a environmental friendly energy

1. China import LNG strategy analysis1. China import LNG strategy analysis1.5 analysis on China1.5 analysis on Chinas strategy of improving energy structures strategy of improving energy structure and and

reasons for import LNGreasons for import LNG


2. CNOOC LNG


CNOOC LNG2.1 Geographic Distribution Map2.1 Geographic Distribution Map


2. CNOOC LNG2.2 Outlook of LNG terminals

301030102270227014701470550550370370TotalTotal

200200HN HN yangpuyangpu

300300GD GD zhuhaizhuhai

400400400400SHSH

400400400400ZJ ZJ ningboningbo

500500260260260260FJ FJ putianputian

121012101210121012101210550550370370GD GD DapengDapeng

201020102009200920082008200720072006200610K t

370 550

1470

2270

3010

0500

100015002000250030003500

2006 2007 2008 2009 2010

GD dapengFJ putianZJ ningboShanghaiGD zhuhaiHN yangpuTotal


3. 3. LNG Cold Energy utilization LNG Cold Energy utilization strategy analysisstrategy analysis


3. LNG Cold Energy utilization strategy analysis3. LNG Cold Energy utilization strategy analysis3.1 process of LNG3.1 process of LNG production and applicationproduction and application

utilization

Use power

Gas to liquid form

Absorb Cold Energy

Liquid to gas form

Cold Energy out


3. LNG Cold Energy utilization strategy analysis3. LNG Cold Energy utilization strategy analysis3.2 LNG3.2 LNG gasification processgasification process

LNG gasification

utilizationutilization

LNGLNG


Energy contained in the gasification process of 1 ton LNGEnergy contained in the gasification process of 1 ton LNG 860860830 830 MMKJ MMKJ equals to 850equals to 850 KwhKwh powerpowervalue at RMB 420value at RMB 420about USD 52.about USD 52.

3. LNG Cold Energy utilization strategy analysis3. LNG Cold Energy utilization strategy analysis3.3 CNOOC LNG3.3 CNOOC LNG cold energy valuecold energy value

1,264,2001,264,200953,400953,400617,400617,400231,000231,000155,400155,400Total Total

840,000840,000HN HN yangpuyangpu

126,000126,000GD GD zhuhaizhuhai

168.000168.000168,000168,000ShanghaiShanghai

168,000168,000168,000168,000ZJ ZJ ningboningbo

210,000210,000109,200109,200109,200109,200FJ FJ putianputian

508,200508,200508,200508,200508,200508,200231,000231,000155,400155,400GD dapengGD dapeng

20102010(RMB 10K)(RMB 10K)

20092009(RMB 10K)(RMB 10K)

20082008(RMB 10K)(RMB 10K)

20072007(RMB 10K)(RMB 10K)

20062006(RMB 10K)(RMB 10K)


3. LNG Cold Energy utilization strategy analysis3. LNG Cold Energy utilization strategy analysis3.3 reason for CNOOC 3.3 reason for CNOOC LNG Cold Energy utilization strategyLNG Cold Energy utilization strategy

Bio and Environmental protectionBio and Environmental protectionSea water vaporizer will make the sea temperature change, which Sea water vaporizer will make the sea temperature change, which will impact the will impact the animals living in that area; in north region, it will also be suanimals living in that area; in north region, it will also be subject to seasons impact.bject to seasons impact.High efficient utilization of energyHigh efficient utilization of energydevelop cycle economic.develop cycle economic.It costs 850kWh electric power to produce one ton LNG, the irrevIt costs 850kWh electric power to produce one ton LNG, the irreversible loss reach ersible loss reach 730kWh730kWhUse these Cold EnergyUse these Cold Energy for other projects for other projects giving consideration to heat transmission giving consideration to heat transmission loss, it can still save up to 500loss, it can still save up to 500700kWh power700kWh powerBased on currentBased on current FujianFujian electric power rate,electric power rate, --162162 LNG cold energy worth RMB 420 / LNG cold energy worth RMB 420 / tontonThere will be more than 10 LNG terminals be built in ChinaThere will be more than 10 LNG terminals be built in Chinatens of millions tons of tens of millions tons of LNGLNG brings in much cold energy.brings in much cold energy.

International LNG Cold Energy utilization technology is matureInternational LNG Cold Energy utilization technology is matureLNG Cold Energy utilization technologyLNG Cold Energy utilization technologypower generationpower generationair separationair separationcold cold

storagestorageliquefy CO2, etcliquefy CO2, etcIn Japan, despite the power generator connected with LNG cold enIn Japan, despite the power generator connected with LNG cold energy, there are 26 ergy, there are 26 independent Cold Energy utilization equipmentindependent Cold Energy utilization equipmentProfessor Professor HuabenHuaben from South China technical universityfrom South China technical universityuse LNG Cold Energy to use LNG Cold Energy to separate C2+separate C2+ technologytechnology


4. LNG Cold Energy utilization


4. LNG Cold Energy utilization4.1 LNG Cold Energy utilization mode

LNG terminal LNG power generatorGas transmission

Air separation

Cryogenic grinding

Cold storage

Power generation

LNG Cold energy

LNG

Cold Energy

utilization modeLight

hydrocarbon separation

Sea water desalt Dry Ice


4. LNG Cold Energy utilization technology4.2 mature 4.2 mature LNG Cold EnergyLNG Cold Energy application technology and processapplication technology and process

LNG Cold EnergyLNG Cold Energy air separationair separation

LNG Cold Energy power LNG Cold Energy power generationgeneration

LNG Cold Energy light LNG Cold Energy light hydrocarbon separationhydrocarbon separation

LNG Cold EnergyLNG Cold Energy rubbish rubbish recycling recycling

Plastic items grindingPlastic items grindingRubber items grindingRubber items grinding

General LNG Cold Energy General LNG Cold Energy utilizationutilization technologytechnology

Cold storageCold storageSea water desaltSea water desaltDry ice manufacturingDry ice manufacturingCold source for normal purposeCold source for normal purpose


4. LNG utilization4.3 international LNG Cold Energy utilization and ladder utiliza4.3 international LNG Cold Energy utilization and ladder utilizationtion

JapanJapanLNG Cold Energy ASULNG Cold Energy ASULNG Cold Energy LNG Cold Energy power generatorpower generatorLNG Cold EnergyLNG Cold Energy to to produce dry iceproduce dry iceLNG Cold EnergyLNG Cold Energy for for cold storagecold storage

KoreaKoreaLNG Cold Energy ASULNG Cold Energy ASU

China TaiwanChina TaiwanLNG Cold Energy ASULNG Cold Energy ASULNG Cold Energy LNG Cold Energy power generatorpower generator

Australia DANDDENONGAustralia DANDDENONGLNG Cold Energy ASULNG Cold Energy ASU

High value added industryHigh value added industryAir SeparationAir Separationpower generatorpower generatorC2 recovery C2 recovery

Low value industryLow value industryCryogenic grindingCryogenic grindingCold storageCold storageDry ice manufacturingDry ice manufacturingSea water desaltSea water desaltCivil coolingCivil cooling


5. CNOOC LNG Cold Energy utilization planning


5. CNOOC LNG Cold Energy utilization planning5.1 principal and mode for setting up LNG Cold Energy utilizatio5.1 principal and mode for setting up LNG Cold Energy utilizationn

industryindustryPrincipal of setting up the industryPrincipal of setting up the industry

High efficient utilize energyHigh efficient utilize energydevelop develop recycle economicrecycle economicprotect sea animals and environmentprotect sea animals and environmentBased on Based on CNOOC LNG projectsCNOOC LNG projectsmarket oriented, and take market oriented, and take profitability as a keyprofitability as a keyutilize mature utilize mature Cold Energy utilization technology and Cold Energy utilization technology and experiences , fully experiences , fully utilize local resources, balance utilize local resources, balance development.development.Promote China Promote China LNG Cold EnergyLNG Cold Energy comprehensive utilization comprehensive utilization development. development.

Mode to setting up the industryMode to setting up the industryWholly own and Wholly own and devellpdevellpSet up joint ventureSet up joint ventureProject cooperationProject cooperationCooperation on sales and marketingCooperation on sales and marketingIntroduce mature technology and experiencesIntroduce mature technology and experiences


5. CNOOC LNG Cold Energy utilization planning5.2 LNG Cold Energy utilization locations and timing5.2 LNG Cold Energy utilization locations and timing

Zhejinag LNG(Ningbo)

Hainan LNG

Guangdong LNG(Zhuhai)

Guangdong LNG(dapeng) Shanghai LNG

Jiang su LNG

Guangdong shantou

Zhejiang LNG(wenzhou)Fujian LNG

CNOOCCold Energy utilization

2007200720102010In In fujianfujian, , zhejingzhejing ningboningbo, , guangdongguangdong dapengdapeng, and shanghai to build LNG Cold Energy ASU, and shanghai to build LNG Cold Energy ASUprojects and civil cooling projects.projects and civil cooling projects.Complete LNG Cold Energy power generatorComplete LNG Cold Energy power generatorrubbish recycling rubbish recycling cold storage projects cold storage projects feasibility study.feasibility study.

2010201020152015Complete CNOOC LNG Cold Energy comprehensive utilization developComplete CNOOC LNG Cold Energy comprehensive utilization development and construction.ment and construction.


6. CNOOC LNG Cold Energy 6. CNOOC LNG Cold Energy utilization projectsutilization projects


6. CNOOC LNG Cold Energy utilization projects6.1 Guangdong dapeng project location1

Guangdong dapeng Guangdong dapeng baybay

LNGC

old

Energ

y

Utiliz

ation

zone


Dapeng bay Cold EnergyDapeng bay Cold Energy tourism zonetourism zoneIce and snow worldIce and snow worldResidential and hotelsResidential and hotels

ASUASU

Sea water desaltSea water desalt

Dry ice manufacturingDry ice manufacturing

Plan to be completed by 2010Plan to be completed by 2010total investment of RMB 1 billiontotal investment of RMB 1 billionASU project partnerASU project partner

Air Products & Chemicals Co. Ltd.Air Products & Chemicals Co. Ltd.

6. CNOOC LNG Cold Energy utilization projects6.1 Guangdong dapeng project project list2


6. CNOOC LNG Cold Energy utilization projects6.2 Fujian putian project location1

Xiu yu port putian city

terminal

LNGCold EnergyUtilization zone


6. CNOOC LNG Cold Energy utilization projects6.2 Fujian putian project project and LNG Cold Energy utilization

zone2

ASUASUpower generatorpower generatorLight Light hydrocarbon hydrocarbon separationseparationOld Old tyretyre grindinggrindingCold storageCold storageSea water desaltSea water desaltDry ice Dry ice manufacturingmanufacturing

ASU will be set up by 2007ASU will be set up by 2007Other projects plan to invest Other projects plan to invest RMB 1.5 billion before 2015RMB 1.5 billion before 2015

ASUASU project partnerproject partnerAir Products & Chemicals Co.Air Products & Chemicals Co.


6. CNOOC LNG Cold Energy utilization projects6.2 Fujian putian project LNG Cold Energy utilization ASU3

Project ownerProject ownerCNOOC Air Products and CNOOC Air Products and

ChemicalsChemicalsFujianFujianLtd.Ltd.

CNOOC owns 51CNOOC owns 51AP owns49%AP owns49%

CapacityCapacityLOX 250 TPDLOX 250 TPDLIN 340 TPDLIN 340 TPDLAR 10 TPDLAR 10 TPD

Total investmentTotal investmentUSD 30 MUSD 30 MPlan complete datePlan complete date

2007.12,312007.12,31Project will need LNG Cold Project will need LNG Cold EnergyEnergy

1 million mega joule1 million mega joule

This project is the firstThis project is the firstCNOOC LNG Cold CNOOC LNG Cold Energy utilization Energy utilization

projectproject


6. CNOOC LNG Cold Energy utilization projects6.3 Zhejiang ningbo project location1

Zhejiang ningbo

Cold Energy

ASU


6. CNOOC LNG Cold Energy utilization projects 6.3 Zhejiang ningbo project project list2

ASUASUpower generatorpower generatorLight hydrocarbon separationLight hydrocarbon separationTyreTyre grindinggrindingCold storageCold storageSea water desaltSea water desaltDry ice manufacturingDry ice manufacturing

ASU project will be completed by end of 2010, other project planASU project will be completed by end of 2010, other project planto invest over RMB 1billion by 2015to invest over RMB 1billion by 2015

ASUASU project partnerproject partnerAir Products & Chemicals Co.Air Products & Chemicals Co.


Thanks a Lot!Thanks a Lot!

cnooc cold energy utilization

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