Title of Powerpoint Subhead Name of Presenter Title of Presenter, Company Date of Event Location of Event Offshore vs. Near-shore FLNG: Functional & Regulatory Similarities & Contrasts

Agenda Requirements and differences in types of units and regulations pertaining to near-shore and offshore Innovative approaches required for meeting the requirements for these two niches Future developments – predicting tomorrow's requirements? Photo Source:

Offshore FLNG – Petronas FLNG 2

Near-shore FLNG Excelerate Lavaca Bay newbuild PLSO Petronas Sungai Udang Terminal conversion

Types of Units & Regulations Pertaining to Near-shore & Offshore Mooring, jetty versus turret or spread moored offshore –Shallow water effects –Underwater inspections –Limited motions by jetty due to restraint, sheltering and benign met-ocean –Feed gas (fluid) from a riser or across a jetty

Cargo-containment –Jetty installation is less prone to sloshing due to sheltering and mild met-ocean conditions –At a jetty, one could augment with one ore more FSUs to provide desired storage volume with smaller additional mooring investment Cargo transfer –Across jetty –Side by side at a jetty or in open sea –Tandem in open sea Types of Units & Regulations Pertaining to Near-shore & Offshore

Topside processing –Jetty installation typically takes feed from pipeline gas: Fairly fixed pressure over the life of the installation Feed temperature variations are only seasonal Pipeline specification on impurities as CO 2 and water Limited presence of a heavy tail Types of Units & Regulations Pertaining to Near-shore & Offshore

Modularization and marinization –Both approaches require marinization of equipment Movement, list and acceleration impacts on process performance Mechanical impacts Structural impacts including transit –Is the unit size set by topside requirements or storage volume? Large and expensive processing equipment Tight packing of equipment is required Structural design must cater to transit and onsite conditions Escape routes, firefighting, explosion mitigation all follow offshore principles for both types Types of Units & Regulations Pertaining to Near-shore & Offshore

Personnel transfer –Via helicopter –Via boat –Gangway from a jetty Full living quarter on board? –A necessity for an offshore solution –Only required for remote operation near-shore –Cafeteria and office only on-board? Supply of consumables and spare parts –Offshore supply vessels –Via truck and over the jetty –Via boat even for near–shore in remote areas? Types of Units & Regulations Pertaining to Near-shore & Offshore

Execution approach: –Controlled environment in a yard –Global procurement –Critical path management Regulatory regime: –Offshore solution treated as an FPSO with class, flag State and shelf State requirements –Near-shore solution: Is it an offshore/marine facility or is it an extension of the jetty? Who has regulatory jurisdiction? Is it permanently moored? Types of Units & Regulations Pertaining to Near-shore & Offshore

North American Near-shore regulations United States of America –Federal Waters: MARAD, Coast Guard, DoT –State Waters FERC, Coast Guard, DoT, EPA –BSEE only if fed directly by well Canada –Provincial regulations. Floaters are new to B.C. –B.C. Oil & Gas Commission pushing for update of CSA Z276 –B.C.O.& G.C. – primary authority for facility permitting in B.C. –Nova Scotia Utilities ad Review Board at or near shore East Coast –Canada Newfoundland Labrador Offshore Petroleum Board East Coast Offshore –Transport Canada – primary vessel permitting authority

Innovative Approaches Required for Meeting the Requirements for these Two Niches Utilize lessons learnt from the FSRU business for near-shore facilities to the degree possible Think regional or similar climatology when considering redeployment Combine lessons learnt from LNG carriers, FPSOs FLPGs and FSRUs to advance the FLNG business

More separation between the near-shore and true offshore FLNGs –Larger offshore units tailor-made to stranded gas prospects offshore –More standardization and use of generic approaches for near-shore FLNGs –Some project specific elements will remain specific: Pipeline composition Climatology Driver selection Water vs. air cooling LNG specification Mooring and metocean Local regulations Future Developments: Predicting Tomorrow's Requirements?