LNG 14 Conference – Doha, Qatar

Qatargas II Development

Qatargas II: Full Supply Chain Overview

•Grant R. Thompson, Qatargas•James B. Adams, Qatargas•Ali Al Hammadi, Qatargas•Saad Al Kaabi, Qatar Petroleum•Paul W. Sibal, ExxonMobil Upstream Research Co.

LNG 14 Conference – Doha, Qatar

Qatargas II DevelopmentQatargas II: Project Overview

Gas LNG LNG Gas to

Pipeline

•QP and ExxonMobil signed HOA in 2002 to supply two LNG trains to the U.K.

•Project made possible through :+World’s largest non-associated gas field +Qatar’s commitment to LNG business growth+Implementation of new cost effective technology+Unparalleled LNG delivery record

•Economies of scale give project a unique advantage to enable entry into new markets at competitive prices+Large LNG Trains - Planning Basis: 7 to 8 MTA+Large LNG Carriers - Planning Basis: 200,000M3

•Full Supply Chain Project+Agreements include provisions for regas and marketing of gas

LNG 14 Conference – Doha, Qatar

Qatargas II Development

QGII Shareholders Others

LNG Train Size - Industry Trends

0

2

4

6

8

10

‘78 ‘89‘82 ‘97 ‘99 ‘03 ‘05 ‘06 ‘07 beyond ‘07‘72‘64

Cap

acit

y p

er T

rain

(M

TA

)

ExcludesCondensate

And LPG

LNG 14 Conference – Doha, Qatar

Qatargas II DevelopmentQGII Technical Innovations

• AP–X TM Hybrid LNG Process, licensed from Air Products and Chemicals, Inc.,

• GE Frame 9E gas turbines with Dry Low NOx combustors,

• 45 MW electric motor/generators with VFD’s, allowing constant LNG production, year-round

• Waste Heat Recovery to improve overall thermal efficiency and further reduce total air emissions, and

• Larger more efficient LNG transportation ships

• Structured technology qualification program to bring new technologies into practice

LNG 14 Conference – Doha, Qatar

Qatargas II DevelopmentOffshore Development Overview

WH-4

(12 Slots)

Qatargas Plant at

Ras Laffan Industrial City

QGII-AQGII-B

Pipeline A34”Pipeline B

34”

QATARGAS NFB COMPLEX

WH-6(12 Slots)

WH-5

(15 Slots)

+ 3 Wellhead Platforms/ 2 Pipelines for 2.9 Bscfd FWS gas

+ Wet Gas Design – Separation/Dehydration Onshore

+ Power/Comm From NFB

LNG 14 Conference – Doha, Qatar

Qatargas II DevelopmentQGII Onshore Plant Layout

LNG 14 Conference – Doha, Qatar

Qatargas II DevelopmentRefrigeration Process Requirements

LIQUEFACTION

AND SUBCOOLING

SWEETLEANGAS

LNG

DEHY SCRUBCOL.

MAINEXCHANGER

(SWHE)

AP-XTM HYBRID CYCLE

NITROGENREFRIGERATION SYSTEM

COMPANDERS

E C

PROPANE CHILLING& SMALL EXPANDER

COLD BOX NITROGENRECYCLE

COMPRESSOR

SUB-COOLER(SWHE)

LNG FLASHDRUM

MIXED REFRIGERANT (M.R.) COMPRESSORS

PROPANE COMPRESSOR

PROPANE CHILLERS

PRE-COOLING:

PROPANE

SYSTEM

Air Products and Chemicals AP-XTM Hybrid Process

• New refrigeration process required for larger train capacities

–Extension of Existing Technology–Combines LNG and Air Separation

Technologies–Uses Two Spiral Wound Heat

Exchangers (SWHE)• Three refrigeration services

–Propane (45oC to -30oC)–Mixed hydrocarbons (-30oC to -

114oC)–Gaseous nitrogen (-114oC to -

160oC)• New process + large capacity = large

refrigeration requirement–275 MW of power required for 7.8

MTPA of lean LNG + .85 MTPA of LPG

–Current technologies require 150 MW for 4.7 MTPA Train of rich LNG

Spiral Wound Heat ExchangerCurrent Qatargas Plant

LNG 14 Conference – Doha, Qatar

Qatargas II DevelopmentFrame 9E Mechanical Driver 275 MW Total Refrigeration Power Required

Frame 9E • Scale-up of Frame 7• 130 MW ISO• 210,000 kg package• 50,000 kg rotor• 350 Power Generation service

since 1979• 4 in Steel Mill service since 1998

Customized for LNG Service• Speed range 96%-102%• Continuous duty, base load• Extended maintenance intervals

with ExtendorKitTM

• Meets Qatar environmental requirements using DLN1

Frame 9E Incentives• High Power - 100 MW site rating (49oC day)• 3000 RPM - better compressor speed match• Flat LNG production

LNG 14 Conference – Doha, Qatar

Qatargas II DevelopmentLLNG Shipping Program

• Development program has qualified Membrane tanks for up to approx 205,000 m3, Q-Flex

• Work underway to qualify 250,000 m3, Q-Max

• Tender in progress for Q-Flex supply to QGII, all tank types are in play

Membrane

SphericalSPB

LNG 14 Conference – Doha, Qatar

Qatargas II DevelopmentSouth Hook LNG Terminal

• Natural Deepwater Harbor, local experience with LPG and large ships

• Refurbishment and outfitting of existing jetty and berthing facilities

• Construction of LNG vaporization, gas conditioning, and tankage

• Interconnection to UK National Transmission System by Transco

• Phase 1 includes three full containment tanks with 7.8 MTA capacity

MilfordHaven

LNG 14 Conference – Doha, Qatar

Qatargas II DevelopmentProject Status/Timeline

• AP-X process selected for Liquefaction • Refrigeration Compression Strings awarded to GE/Nuovo

Pignone in July 2003• FEED initiated in July 2003• EPC and LLNG Ship tenders to be released Mar – May,

2004• Commence EPC and ship fabrication in 4Q 2004• Compressor full – load string testing in mid-2005• Major equipment on site in mid-2006• S/U and Commissioning late 2007• Target first LNG to market in Winter 2007/2008