Linde Introduction

Small Scale LNG Distribution

Michael LUTZ
Rostock, 13th, Oct. 2014
The Linde Group
based on two pillars with extensive synergies

The Linde Group

Linde Gas Linde Engineering

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The Linde Group
Global >100 countries, 63 people & turnover EUR 16.6 bn (2013)

Linde is market leader in 4 out of 5 emerging market regions

Eastern Europe &
Middle East

#1

#1 Greater
China

South and
#1
East Asia

South
America #2
#1
The Linde Group
No presence South Africa

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 In our Gases Division long term investments include all
aspects from source to customer

Pipeline
Gases production plant

On-site supply
Pipeline

Transport of liquified gas

Customer
Filling centre Transport of compressed gas

Retailer

04.12.2013 Fuzeile 4
 Linde main supplier to the Scandinavian LNG development

AGA part of cluster behind Norways first 20 kt/y

LNG plant, Trondheim, starting the marine LNG area
in Norway
EPC contractor of 40 kt/y Gasnor Train 1, Bergen
EPC contractor of 300 kt/y Skangass LNG plant,
Stavanger
EPCS contractor of 4,3 mt/y Statoil, Snhvit, base
load LNG plant, Hammerfest
Supplied LNG equipment for LNG onboard storage in
the North Sea to a majority of all current ships
Built, own and operate Stockholms LNG terminal
first LNG import terminal in the Baltic Sea
AGA awarded the contract to supply the first large
LNG fuelled ship in the Baltic Sea, Viking Grace

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 Linde Engineering Division
Global Presence for the LNG Value Chain 2012

Hammerfest

Kollsnes
Bergen
Stavanger Nynshamn LNG
Gothenburg
Livermore LNG
Albury LNG Stuttgart
Murray Hill Pullach/Schalchen Jimunai
Tulsa
Hsingue
Blue Bell Constanta Xinjiang
Dalian
Ahwaz
Hangzhou
Asaluyeh

Vadodara

Alice Springs

Kwinana
Dandenong LNG
Mossel Bay
Tasmania LNG
Technology, Execution & Manufacturing Centers
Major LNG & NGL Extraction EPC Jobs
LNG Facilities Owned & Operated by The Linde Group
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 Linde heavily engage in the complete value chain for small
scale LNG beyond Scandinavia

Small to mid-scale liquefaction plants

Gablingen, Germany Tasmania, Australia Bergen, Norway Kwinana, Australia Stavanger, Norway Shan Shan, China
21 tons per day 50 tons per day 120 tons per day 175 tons per day 900 tons per day 1,300 tons per day

Distribution & storage, refueling equipment and components

Linde owned small scale LNG operations

Australia Altamont, CA, USA Scandinavia 7

LNG Processing Plant
What are the main installations?

Main Installations - Functionalties

Gas Treatment
Removal of water, condensate and other components (e.g. CO2, H2S, Hg, and others)

Liquefaction
Pre-Cooling, liquefaction and sub-cooling using refrigerant cycles

Storage and Loading

Storage under pressure or atmospheric pressure, loading of product by various means
(e.g. ship, truck, etc.)

Safety and Security

Installations for the plant security and process safety such as access control, CCTV, fire
and gas detection, firefighting, emergency shut down, flare, etc.

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LNG Processing Plant
What else is required?

Utilities - Functionalities
Power Generation and Distribution
Power generation by gas turbines, transformation and distribution by switchgear to
various consumers
Instrumentastion and Control Installations
Distributed Control System (DCS), fire and gas detection, control valves, etc.
Nitrogen, Instrument and Plant Air Supply
Generation and storage of nitrogen, instrument and plant air
Run-Off, Sewage and Waste Water Treatment Systems and Installations
Collection of run-off, sewage and other effluents
Buildings
Administration building with central control room, workshop and warehouse
.........

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LNG Processing Plant Block Diagram
How to keep track and the overview?

Noise Exhaust from Sea/Waste Waste Emissions

Gas Turbines Water to
and Flare Seawater for Atmosphere
Fish Breeding
Compression Storage
and and
Gas Treatment Refrigeration Loading
Feed Natural Gas
Liquefaction
from Return Gas from Ship
Mercury Drivers and
Pipeline Pig Trap CO2
Inlet Facilities Removal and Dehydration Compressors
Slugcatcher Removal LNG Storage LNG Loading
Dehydration LNG to Ship
Cryogenic Units

Tank return gas

CO2 to Return Gas from Ship
Pipeline Fractionation
CO2 Fuels, Gas,
(Refrigerant LPG Storage LPG Loading
Recompression Diesel LPG to Ship
Make-up)

MEG/ pH stab./
Corrosion Inhibitor Make up
Return Gas from Ship
to Pipeline
MEG Condensate Condensate Condensate
Recovery Treatment Storage Loading Condensate to Ship
Clean Lean MEG

Service System for Safety

Offshore Installations
and Utility Systems
Safety
Umbilical (HPU, SPCU, SCU, Flare Systems
Corrosion Inhibitor) Security LNG Plant and
Security

Offshore
Central Control LNG Plant
Communication Telecom Power Fresh Water Sea Water Import
Room LNG Plant
Import/Export Import

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Liquefaction Process
What does a simple expander process look like?
NG

Typicals
simple process, low equipment count
nitrogen or mixed refrigerant (N2, CH4) cycle
C1
at one pressure level
pre-cooling, liquefaction and sub-cooling
realized in one heat exchanger (aluminum
X2 C2 plate fin heat exchanger)
specific energy consumption approximately
600-700 kWh/t LNG
investment volume < 50 Mio.
LNG

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General market opportunities for small-scale LNG

Marine Sector Mobility Industry & Power

M/S Bergenfjord (2x 125 m tank) LNG truck fuelling station Stockholm Nynshamn Terminal
Supply of nearby Refinery

Status Status Status

Due to regulation and price
development huge interest by
shipping industry
More than 20 ships equipped
with tanks from Cryo AB
Viking Grace from 2013 fuelled
by LNG
Price benchmark
ECA: MGO or HFO + scrubber
Deep Sea: HFO
OEMs (Volvo, Westport, In stranded areas without
MAN, ) developing connection to trans-european
technology grid, gas supply alternative
First LNG refuelling station in Interest from various industries
Stockholm in operation, 2 more to substitute other fuels with
to come in 2012 natural gas
Price benchmark Price benchmark
Diesel LPG, Diesel, Naphtha

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Experience from current operations

Australia North America Europe, UK & Scandinavia

LNG truck fuelling station BioLNG plant in Altamont California LNG truck fuelling station Stockholm
installed October 2012, Victoria

Status Status Status

Small scale plant capacity Huge spread between diesel
exist on both East and West and natural gas price
coast Oil & Gas industry early
Appreciation of AUD adaptor of LNG to displace
hampers development diesel
Lack of suitable vehicles, Several players announced
OEM backed vehicles significant investments in
infrastructure
First few stations installed
Economic drive relative low
but strong interest for bio
methane
Good cooperation within
industry

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Truck Fuel Station (Pumped)
Typical Process Schema

Bulk tank

'Warm' LNG
LIN Assist option

LIN
'Cold' LNG

Two hose option

Top

Bottom

Bulk fill
Onboard tank

Pump Saturator option

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LNG Truck Fuel Station in UK

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 Lindes Intention: Establish LNG as Alternative Fuel
Success Factors

LNG Supply:
Producer/ LNG Supply
Secured LNG supply from large scale, centralised
entry points (i.e. LNG import terminal) or local LNG
production direct or over small-scale LNG terminals
to customers
No seasonality for freight haulage as for
Operator / OEM / established gas markets
Infrastructure Technology Price formula and contracting according to needs
for heavy truck operation
LNG infrastructure:
Chicken-egg problem persist funding to establish
multiple access points to LNG for road transport
Customer network, e.g. public or customer specific
/ Fleet operator Established and EU wide harmonized legislation
and standards required
Security & cost of supply, availability of Technology need to fulfil user and environmental
infrastructure and OEM backed products must requirements
come together to generate growth and avoid Customer:
disappointment on either side during early Availability of OEM backed products
market introduction. Commercially viable business case

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Thank you for your attention.