Technical Developments:

New technologies for a changing LNG environment

GIE Annual Conference, Krakow, May 25, 2012

Hugues MALVOS GIIGNL TSG Secretary Hugues.malvos@gdfsuez.com

Presentation of GIIGNL
The International Group of LNG Importers, known by its French acronym GIIGNL, is a non-profit organisation established in Paris in 1971 GIIGNL presently has 68 member companies from 21 countries of Asia, Europe and the Americas GIIGNL is unique in the industry in that it groups nearly all companies in the world active in the import and regasification terminalling of LNG The aggregate competence and experience of members, as represented in the General Assembly / Executive Committee and in the Technical and Commercial Study Groups, have the highest standing in the industry Membership has evolved in line with the development of the LNG industry and consists of companies either solely active as LNG merchant, solely active as LNG receiving terminal owner/operator or active in both businesses Minimum activity threshold levels apply for eligibility
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Objective
GIIGNLs main objective is to study and promote the development of activities related to LNG: purchasing, importing, processing, transportation, handling, regasification and various uses of LNG The Group aims to provide an overview of and reports on the state-of-the art technology in the LNG industry and its general economic state

GIIGNL promotes the exchange of information and of experience among its members to enhance the safe ,reliable, efficient and sustainable operation of LNG import facilities, to improve contractual techniques, to develop positions to be taken in international agencies, etc.

Strict compliance with competition law is adhered to in GIIGNLs proceedings

Organisation
President Jean VERMEIRE
General Delegate Jean-Yves ROBIN

Vice President for Asia Tsuyoshi OKAMOTO President ,Tokyo Gas Company, Ltd.

Vice President for Europe Jean-Marie DAUGER Executive Vice President , GDF SUEZ

Vice President for the Americas Martin HOUSTON Executive Director, BG Group plc

An Executive Committee, composed of 4 members per region is elected by the General Assembly

Two Standing Study Groups: Technical (TSG) and Commercial (CSG)

TSG: Chairmanship GDF SUEZ ; 31 members Chairman / Secretary: Bndict Weiss / Hugues Malvos CSG: Chairmanship BG ; 31 members Chairman / Secretary: Anita Odreda / Liah Ahmad Protocol for Coordination of Activities and Information Exchange among LNG Organisations Protocol members: EUROGAS, GIIGNL (coordination), GLE, IGU, SIGTTO www.giignl.org
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Which place for LNG in the future gas chains?

Get access to new gas supply sources Transformation& transportation Alternative / Emerging gas uses

Access new gases supplies

Transmission

Alternative/ emerging gas uses

Conventional gases

Unconventional gases

LNG

Gaseous form: Pipe/CNG

Artificial hydrates

Retail LNG

Gas to Wire

GTL

Associated gas

Stranded gas

Large size

Shale Gas

Tight Gas

Coal bed methane Natural hydrates

LNG as fuel

Fisher Tropsch

DME

Methanol MTO

Onshore

Offshore Subsea FLNG

Unlock technical barriers for floating LNG projects

Assessing availability of marine operations to perform LNG transfer

Selecting adequate LNG transfer system technologies

FERA, QRA, CFD simulations on safety

Assessing gas dispersion to help on vent design

Cargo Contain System - BOG production - Sloshing

Unlock technical barriers for floating LNG projects

Jettison Offloading availability model

CFD Simulations

Unlock technical barriers for floating LNG projects Cargo Contain System

Standing wave

40 % H Progressive wave

Sloshing risk Selecting adequate Cargo Contain System: e.g. single row vs two row

Assessing gas dispersion to help on vent design

Assessing Boil Off Gas production

Sloshel User Group

Sloshel User Group

Unlock technical barriers for floating LNG projects LNG transfer system technologies
Transfert
Articulated hard arms
Aerial

Cryogenic flexible hoses

Submerged

Aerial

Floating

Source : Technip

Source : Technip

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Transfer systems and naval architectures Side by side

Technip

Side-by-side transfer
Same configuration as LNG carrier moored to a jetty Suitable for benign sea conditions only
Excelerate / Exmar with Gutteling hoses

Shell

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Transfer systems and naval architectures Floating or submerged tandem

Technips concept

Tandem transfer
Inspired by oil industry practice

(30 years experience)

Usable in harsh sea conditions Several possible configurations

SBM concepts

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Transfer systems and naval architectures Aerial tandem

SBM FRAMO - Nexans

Dunlop (Bluewater) Eurodim - Technip

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Unlock technical barriers for floating LNG projects LNG transfer system technologies
Spool piece connected to the LNG carrier manifold Quick Connect/ Disconnect Coupler Emergency Release System Guiding devices Connection winch

Flexible hose

Gutteling hoses

ALLS trials / Montoir terminal

Framo/Nexans OCT system

SBM COOL System

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ALLS trials / Montoir terminal

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Optimizing LNG chains Meeting LNG market needs

STAGE: optimizing LNG supply chain efficiency

Companies face the challenges of seizing opportunities for spot cargoes, minimizing operational costs and using all assets as effectively as possible
CARGO, MOLAS: Being able to predict LNG ageing onboard LNG carriers and

its composition at unloading points is a precious advantage for shipping management and LNG trading
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New challenges : LNG Carriers

LNG and NG quality

Air emissions (NOx, SOx, CO2)

Onboard Analysis System Evaluation of the link between BOG quality and propulsion system efficiency

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A new market
LNG as Fuel Retail LNG

LNG truck loading station (GDF SUEZ NA)

Truck using LNG as fuel (Enviro Express)

ECA : Emission Control Areas

Green ferry project in the Netherlands (Cofely, Electrabel)

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Innovation for a new market: LNG as fuel

Offshore
Refueling/filling stations Ship-to-ship transfer
A innovative solution to be developped for bunkering operation A transfer procedure to be approved by classification society Development of a generic solution

Onshore
Truck-to-ship transfer
A transfer procedure for harmonization in Europe

LNG quality / Methane Number: a key parameter for engine combustion with LNG
Promoting a global method for commercial transaction Studying a control process to guaranty LNG quality for engine 19

Opportunities in monitoring systems

Gas emission
Gas Quality

Long-range & low-level detection and quantification of natural gas emission (nano-pulsed laser)

Nano Gas Chromatography HHV, Sulfur, -80% CAPEX / -25% OPEX low maintenance, low consumables

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Activities of the Technical Study Group

Main current and recent topics of study:
Compatibility of LNG Tankers & Terminals
SIGTTO/GIIGNL Information Portal for LNG terminal and ship data, www.lngterminalinfo.org for first pass ship-shore compatibility screening

Information on LNG Safety Standards and Industry Safety Record - Provision of 7 information papers on public area of website www.giignl.org Database of LNG Incidents & Near-misses LNG Custody Transfer Handbook ( 3rd edition 2010) Overland Transportation of LNG by Truck and Rail (updated) Emissions to the Environment from LNG Import Terminals Security Equipment and Systems at LNG Facilities Quality and Compatibility of different LNG Sources (update in progress) Predictive Maintenance at LNG Import Terminals
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Papers and reports presented by Members

Sample of most recent subjects:
- Review of a-typical regas terminals - LNG industry production performance - CO2 emissions in the LNG industry - Developments of construction costs of liquefaction and regas facilities - Developments in offshore LNG facilities - Gas quality specifications for transmission and acceptability of LNG - Marine transport of Compressed Natural Gas

- Stratification and rollover potential analysis for extreme LNG quality

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Major Publications
The GIIGNL LNG Custody Transfer Handbook is widely used for the purposes of title transfer in commercial transactions and describes the equipment and procedures for accurately measuring the thermal energy of LNG which is bought and sold. The recently completed third edition includes new technology, updated standards and new modes of operation, e.g. re-loading of cargoes at receiving terminals.

Available on the public area of GIIGNL website, free of charge www.giignl.org

Potential next steps:

- Ship to Ship Transfer (Offshore) - Small Scale Transfer (LNG as fuel)

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Major Publications
The LNG Industry, an annual compilation of the basic statistics of the LNG trade, providing data of LNG quantities traded, short and long term contracts concluded and extensive information about liquefaction plants, regasification plants and shipping. The data in the report are submitted by members of GIIGNL.

Available on the public area of the website www.giignl.org and in printed form, free of charge 24

www.giignl.org
Thank you for your kind attention

Hugues MALVOS GIIGNL TSG Secretary Hugues.malvos@gdfsuez.com