Gas commercialisation technologies Alexandre ROJEY

Contents Main options Gas to Gas Gas to Fuels & Chemicals Gas to Wire Conclusion

Gas commercialisation technologies: main options Treatment/ fractionation Natural gas NGL/ LPG towards chemicals Methane CO 2 Contaminants Pipe LNG CNG Tanker Liquefaction Electricity Fuels Chemicals Hydrogen Chemical conversion Electricity generation

Selection criteria Economics Market Environment Demand Competition with other sources Gas to gas competition No gas flaring H 2 S and other contaminants GHG emissions Capacity Distance Gas quality

Gas through pipelines High capacities High pressures and highly tensile steels Offshore pipelines

Long-distance transportation cost for large gas volumes Capacity, 10 9 m 3 /year Cost, US$/m 3 56 ” High Pressure (X-80) Conventional pressure (X-70) 56 ” 46 ” 36 ” 42 ” Source: GATE 2020 by ENI/IFP

Pipes/LNG Competition for 30 bcm/year capacity Source: ENI Miles GAS OFFSHORE LNG GAS ONSHORE Conventional Pressure HighPressure } } US$/10 6 BTU

NGL / LNG / CNG Natural Gas liquids Very large LNG trains: – Mini LNG – Offshore LNG – CNG

NGL production Dry gasWet gas Condensate gas Associated gasOil Liquids Offshore NGL recovery LPG FPSO concept

International Gas Trade Prospects Source: CEDIGAZ 5.9% 15.6% 23.5% 21.5% % % % 22.3% LNG share in total trade

Liquefaction plants: Increase in train capacity Mt/year Existing plants Projects Lumut Skikda Das Is.1 MLNG 1 Arun III Bontang III-E RasGas & Qatargas Sakhalin II Snohvit LNG Tangguh Yemen LNG Atlantic LNG Damietta NLNG Qatargas NLNG 350 $ t/yr250 $ t/yr Investment cost 270 $ t/yr 200 $ t/yr

Liquefin process High efficiency Plate-fin heat exchange line: modular approach Simplicity and reliability Wide range of capacity

Offshore LNG

CNG transport economics

Chemical conversion FT synthesis Oxygenates: MeOH, DME Hydrogen and chemicals (ammonia...)

Chemicals & hydrogen production through syngas generation Ultra-Clean Diesel Jet Fuel Lubricants Alpha olefins SYNGAS (CO + H2) Acetic acid MTBE Urea Fuel Cells Green Fuels Methanol Ammonia Formaldehyde Fuels/ Additives Olefins Polyethylene Ethylene Glycol Alpha-olefins Polypropylene Acrylonitrile Fuel Cells DME Power Generation Diesel Fuel LPG Substitute FT Synthesis GTL Hydrogen

GTL process Syngas Generation Upgrading FT Synthesis Oxygen/steam N.G. Syngas Final products Waxes Very large market Diesel fuels, kerosene, naphtha Clean fuels No sulfur, no aromatics Cost effective technology New generation technology Large capacity trains

GTL Economics Break Even $/Bbl Investment $/BPD

Gas to wire AC Current DC Current CO 2 capture and storage – combined with EOR

AC/DC Wire transportation Underground 56’’ H.P. pipeline 37m 5 lines 550 kV ( MW) HVDC Transportation AC Transportation

Power generation with CCS Hydrogen-fired power-plant: 350 MW Pre-combustion capture, EOR in 2009 Gas-fired power-plant: 860 MW – 2,5 Mt CO2 per year, Post-combustion capture, EOR in 2012 BP project "DF1-Miller" Shell-Statoil: Tjeldbergodden project

Conclusion New technologies widen the range of options Higher oil & gas price facilitate investment decisions but lead to increasing costs CO 2 have more and more to be taken into account