MPEH LLC
1
Global LNG Services AS (GLS), established in 2013, is an LNG project developer that will build, own, and operate LNG liquefaction, storage and offloading vessels (FLNGs) for export of natural gas for locations in the U.S. and other global locations
GLS was selected by Freeport‐McMoRan Energy (FME) to acquire and develop its Main Pass Energy Hub™ (MPEH) project as a location for the first two of a series of FLNG vessels to be developed and operated globally
MPEH was previously permitted in 2007 by the Maritime Administration (MARAD) as a Deepwater Natural Gas Port for the importation and regasification of LNG, processing and storage of natural gas in on‐site underground salt caverns, and pipeline transportation of natural gas and NGLs to nearby markets
GLS has developed LIQUI‐MAX™ Vessels (LMVs) based on its own proprietary LIQUI‐MAX™ platform, a highly efficient patent protected natural gas processing and liquefaction technology for FLNG vessels, with per vessel throughput rates of 12 million tons per annum, resulting in industry leading low unit cost
The MPEH site coupled with GLS technology and commercial strategy will provide the first of many industry leading low cost LNG liquefaction facilities
THE COMPANY
MPEH LLC
2
GLS‐MPEH MILESTONES 2015 – Reconfigured and expanded the standard FLNG concept into GLS’s patented Liqui‐Max
vessel with 12 million tonnes per annum throughput and a fully loaded unit cost breakeven below $2.00 per MMBtu
2016 ‐ Received technical validation on the LIQUI‐MAX process configuration, air cooling, and nitrogen processing designs
November 2016 – Acquired Main Pass Energy Hub project site and all associated assets (including intellectual property and the FTA permit for 24 MTPA) from Freeport‐McMoRan Energy LLC
December 2016 – Completed portions of pre‐FEED and FEED for solicitation of indicative quotes from shipyards and equipment suppliers
January 2017 – Evaluation of gas supply, pipeline, and pre‐processing plant locations for MPEH completed ‐ discussions in progress with major international companies for selection of pre‐liquefaction manager
January 2017 ‐ Indicative quotes received, validating CAPEX estimates
January 2017 – Re‐engagement with MARAD for project permitting
MPEH LLC
4
Main Pass Energy Hub™Main Pass Block 299
Lat: 29°15’56”Lon: 88°45’34”
Henry Hub
Mississippi
Louisiana
Alabama
Gulf of Mexico
Located Offshore in Gulf of Mexico
16 miles offshore Louisiana ‐ 5 miles from coastal shipping lanes ‐ 210 ft (65 m) water depth
MPEH LLC
5
MPEH Offshore Terminal with two
LIQUI‐MAXTM vessels24 MTPA
and new platform structures
Note: View shown with pre‐processing located onshore
MPEH DEEPWATER PORT LNG EXPORT CONFIGURATION
MPEH LLC
6
Scalable 3‐6‐9‐12 MTPA LNG output per vessel
100 % air cooling
Liquefaction using efficient N2 trains
Use of N2 offers significant safety benefits
Thrusters for offloading and propulsion
Side‐by‐side offloading
300,000 m3 storage per vessel (GTT Mark III)
Design supports current permitting criteria
Vessel hull 390m x 64mKey Technical Features
THE LIQUI‐MAXTM VESSEL
MPEH LLC
7
PROPOSED MPEH DWP LNG EXPORT TERMINAL CAPACITY
Two LIQUI‐MAX™ Vessels (24‐MTPY)
Day Year*
Natural gas supply 3.94 Bcf 1.36 Tcf(0.112 Bm3) (38.5 Bm3)
1,359 TBtu
LNG liquefaction capacity 3.50 Bcf 1.21 Tcf(69,600 tonnes) (24 million tonnes)
1,238 Tbtu
* Year values are based on 345 operating days per year
MPEH LLC
8
PRE‐LIQUEFACTION SUMMARY The MPEH LNG export project consists of two main segments:
– Gas supply from source to loading flange on liquefaction vessels (“Pre‐Liquefaction”)– The LIQUI‐MAX™ Vessel portion of the business
GLS intends to farm‐out to a Pre‐Liquefaction Manager (PLM) all pre‐liquefaction activities:– Natural Gas Acquisition and Supply including balancing, storage, and swapping– Pipeline Transportation including pipeline acquisitions and/or expansions – Pre‐processing of the gas from pipeline quality to liquefaction quality and liquids production– Offshore Gas Receiving Platform for receipt of the pre‐processed gas, recompression, gas precooling
systems and in‐field pipelines to transport gas to the LMVs
GLS will issue a separate RFP for Hub Management, which includes:– Support vessels such as tugs and supply vessels– Port logistics and scheduling of in‐coming and out‐going LNG carriers– Port safety, security, regulatory compliance, weather surveillance, and personnel transfers – Hub Management , including port operations, may be part of the PLM responsibilities
MPEH LLC
9
LNG EXPORT TERMINAL PRE‐PROCESSINGPipeline quality gas will be preprocessed to liquefaction quality by reducing the concentration of contaminants to the levels below:
Variable Feed to Pre-processing
Pre-processedgas Typical LNG spec
mole % mole %H2O 0.010 0.000 max 0.1 ppmv (UOP)
N2 1.000 1.000 max 1.5 mole% (typical)
CO2 2.000 0.005 max 50 ppmv (UOP)
H2S 0.001 0.000max 2 ppmv (UOP)
(0.125 grains per 100 SCF)
C1 94.102 96.053C2 2.600 2.653C3 0.200 0.204iC4 0.025 0.025nC4 0.035 0.035
iC5 0.009 0.009 C5+ max 1000 ppmv (UOP)
nC5 0.006 0.006C6+ 0.012 0.010 C6+ max 100 ppmv (UOP)
Total 100.000 100.000
HYSYS Calculation HYSYS calculation
SG 0.584 0.586
HHV (Btu/Scf) 1022 1013 1000 - 1150STABLE NGL ADSORPTION 0 BPD
STABLE NGL COLD FLASH 150 BPD
MPEH LLC
10
SEVERAL MAJOR GAS SYSTEMS ARE LOCATED IN THE VICINITY OF MPEH
Chandeleur
Destin
Gulfstream
Transco
DIGP
Vioska Knoll
Main Pass Energy Hub™
Tennessee
Texas Eastern
SONAT
MPEH LLC
13
MPEH SHIPPING ADVANTAGES
Venice
• MPEH offshore location allows quick access from shipping lanes to facility without entry into river systems and inland ports
• Round trip time from a central point “A” in the Gulf of Mexico to the LNG facility is estimated at 2.3 days for MPEH vs. 7 to 8 days for other facilities in west Louisiana and east Texas
LEGEND
MPEH
Shipping Lanes
LEGEND
MPEH
Shipping Lanes
Pt A
MPEH
MPEH LLC
14
Main Pass 299 Edge of Dome
Mont Belvieu Edge of Dome Mont Belvieu•Largest storage facility of hydrocarbon liquids in the world
•2‐mile (3.2 km) diameter salt dome
•131 caverns• Avg. size 1‐1/2 to 2
MM Bbls• Total volume 350
MM Bbls• All liquids storage
MPEH•2‐mile (3.2 km) diameter salt dome
•Potential Capacity: +39 caverns• 15 million (MM) Bbls
(2.4 MM m3) or 9.3 Bcf (263 MM m3) each
•Total Potential Volume:• 585 MM Bbls (93 MM
m3) or 363 Bcf (10.3 bm3)
MPEH potential storage capacity is comparable to Mont Belvieu and could be developed for storage of natural gas, crude, LPGs, and refined products
MPEH LLC
15
APPROVALS REQUIRED FOR EXPORT PROJECT
• MARAD– The “one window” application review process created by Congress in the Deepwater Port Act enables a
comprehensive, coordinated, and timely decision from all agencies involved in the permitting process
– The methodology discussed with MARAD for preparation of the export application is to use the existing body of work, created in the preparation of an import facility, as a basis for the export application
– Review and approval of permit applications under the Deepwater Port Act is legislatively mandated to be completed in less than one year, with clock stoppages if needed for additional information submittals
• DOE– On May 24, 2013, DOE approved MPEH for export of natural gas to FTA countries as noted in Order No.
3290: “FME is authorized to export domestically produced LNG by vessel from the proposed MPEH Port, to be located in Federal waters in Main Pass Block 299…”
– The non‐FTA portion of the application will be revised and processed after MARAD has completed an environmental review of the project
• FERC
– If on‐land pipelines and pre‐processing are part of the MPEH project, FERC/State approval would be required under the overall MARAD permitting process.
MPEH LLC
16
MARAD RECORD OF DECISION ‐ 2007
• Record of Decision (ROD) issued in 2007 for MPEH LNG Import will be used in part as a basis for development of an export applicationThe MPEH Deepwater Port (DWP) import facility was approved per the ROD based on use of the existing structures located on the Sulphur & Salt Lease as well as use of the salt dome for brine production and natural gas storage to support the overall operations. Functions of the DWP included LNG import, gas storage in caverns, natural gas liquids extraction, and gas/NGL pipeline transportation.
The project underwent an extensive NEPA analysis that included a full Environmental Impact Statement and Environmental Assessment as well as developmental input and review by other agencies including:
• USCG• MMS (now BSEE & BOEM)• EPA• NOAA Fisheries• USCG 8th District• FERC (onshore pipelines)• DOT Office of Pipeline Safety• US Fish & Wildlife Service• US Army Corps of Engineers• LDNR Office of Coastal Management
The review resulted in a favorable Record of Decision for the project by the Maritime Administration (MARAD)
MPEH LLC
19
THE GLS BREAKTHROUGH – LIQUI‐MAX™
• Gas pre‐processing remote from the FLNG vessel; generic vessel functionality – liquefaction, storage and offloading only.
• Low unit cost driven by high liquefaction rates per vessel, 12 million tons per annum
• Gas pre‐cooling synergies exploited between pre‐processing plant and liquefaction vessel
• Nitrogen process – the safest process available
• Proprietary air cooling lay‐out on cantilever in combination with the most recent air cooler developments provide 100% process air cooling
‐ Verified by Major Contractors ‐
‐ Protected by Multiple Patents Applications ‐
MPEH LLC
20
ADVANTAGES OF THE LIQUI‐MAX™ SYSTEM INCLUDE:
Lowest liquefaction costs and tolling fee levels per mmbtu
Huge seawater intakes eliminated by unique GLS cooling solution, minimizing impacts to the marine and fisheries environment
Offshore location mitigates safety risks for local communities, while still offering extensive permanent employment opportunities and other economic benefits
Controlled shipyard environment enables superior quality control, cost control, and development speed compared to onshore, onsite construction
Gas pre‐processing located on fixed structure/barges or onshore, and placing liquefaction trains on a vessel hull enables GLS to select the best solutions from both the onshore and offshore world
Floating liquefaction units can be relocated to other global regions if market conditions change
Patents already received or pending for the LIQUI‐MAX™ System
MPEH LLC
21
ADDITIONAL DRIVERS OF THE GLS COST ADVANTAGES
Reconfiguration of vessel to locate non‐cryogenic systems to off‐vessel or second vessel locations Standardization of equipment and systems to “off‐the‐shelf”
designs, providing competitive alternatives Open‐art liquefaction technology ‐ no costly tied equipment Use of field proven process components only, allowing
straightforward industry process verification Vessel and associated construction in controlled yard
environment Fixed‐price, lump‐sum contracting with no change orders Alignment of interests with sub‐contractors for cost
minimization Industrial series production – not a one‐off project
MPEH LLC
22
CONTACT INFORMATION
MPEH LLC(owned by GLS subsidiary Main Pass LMC AS)
David C. LandryPresidentMain Pass Energy Hub™1615 Poydras StreetNew Orleans, LA 70112 U.S.A.
Office:+1 504‐582‐4880mpeh@gls‐ltd.com
Global LNG Services AS
Paul L. EckboChairmanGlobal LNG Services, ASInkognitogata 33, 0256 Oslo, Norway
Office:+47 22 04 94 50info@gls‐ltd.comwww.gls‐ltd.com
Jan 31, 2017