CURRENT STATUS & STRATEGIESFOR NATURAL GAS DEVELOPMENTUSING FLNG
Seminar on Offshore Activities for Natural Resources
Japan International Transport Institute (JITI)

Hamzah Ahmad
25 February 2015
Tokyo, JAPAN© 2015 PETROLIAM NASIONAL BERHAD (PETRONAS)
All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form orby any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyrightowner.

Table of Content
1. PETRONAS LNG Presence Today
2. Global FLNG Project Overviews3. The Journey
4. Why Offshore?
5. Integrated Concept
6. Combinations of Proven Components
7. Hull Construction
8. Topside Construction
9. Configurations
10. Advantages
11. Key Design Considerations – Selection Criteria / Key Technologies
12. Challenges
13. Conclusion

PETRONAS LNG Presence Today
PETRONAS LNG is one of the leaders in LNG production worldwide

UK LTD

LIMITED

Combined LNG Sales Volume of 28.9 MT in 2013

Global FLNG Projects Overview
FIELD

LOCATIONOPERATORCAPACITY (MTPA)

Kanowit

Malaysia

PETRONAS

1.2Rotan

Malaysia

PETRONAS

1.5

PreludeAustralia

SHELL

3.6Browse

Australia

WOODSITE

10 - 12

Abadi

Indonesia

INPEX

2.5

Bonaparte

Australia

GDF SUEZ

2.3

Cash/ Maple

Australia

PTT2Greater Sunrise

Australia

WOODSITE

4ScarboroughAustralia

EXXON MOBIL

6-7

Source : Energy Business Intelligence

The FLNG Journey…
SSL

CGL

TECHNOLOGYOPTIONS TOMONETISE
SMALL GASFIELDS

Compressed Gas Liquid

Small-scale LNG Liquefaction
Plant
CNG

NGH
Pelletizer

FLNG
Compressed Natural Gas

Natural Gas Hydrates•Floating LNG
Compression ratio : 1/600

Since 2006, PETRONAS considered many options to monetise the small andstranded gas fields.
Final Investment Decision (FID)

Current Progress

Planned Completion

PFLNG 1March 201289%

1st Quarter 2016

PFLNG 2January 201430%

1st Quarter 2018

Source : Technology Agenda 2006

Why FLNG?
ONSHORECAPEX (excludingproduction systems)

OFFSHORE

Extra cost for land, pipeline, jetties,
infrastructure

One facility at gas location anddirect shipping to LNG buyers

Longer process and potentially area
limitations

Simpler and easier process
expected for offshore locations

Installation &Abandonment

Permanent Installation

Relocatable offshore floating units

Screening ofLocationsLimitations by suitability of seafronts,
water depth etc.

Can be located at source even if
remote area, few restrictions

Homeland Security

Close to the population

Lower risk, less public exposure

EIA and Permitting

FLNG - Changing the traditional LNG landscapeGas Production

Offshore pipeline

Liquefaction

Storage &offloading

Shipping

Storage &Regasification

Floating LNG (FLNG) is:•An integrated LNG floating production, storage andoffloading (FPSO) unit•

Stationed offshore at a gas field to extract natural gas fromthe wellhead and processed into liquefied natural gas (LNG)•The produced LNG is stored in the FLNG containment
system and is offloaded directly into LNG carriers offshore•

Solution to monetize stranded gas field or as an early
production option•To be proven operationally & may be a widely used solution
for future LNG production

PETRONAS FLNG – A Combination of Proven Technologies

PROCESS PLANT

LOADING ARMS

TURRETLNG TANKSComplete Hull Erection from Steel Cutting to Dock Erection

Steel Cutting

Component Fabrication

Hull Launching &Quay Side Outfitting

Keel Laying

Pre-outfitting

Block Painting

Pre-erection &Super Block OutfittingComplete Topside Erection from Steel Cutting to Erection

Steel Cutting

Assembly & Pre-PE

Pre-outfitting*Block Stage Outfitting*Before Turnover Outfitting

Ready for Lifting

Module Outfitting

Module Outfitting

Turnover & PE

*On Module stage*Deck Stage
Equipment Installation& Outfitting*Turnover, Outfitting
and Pre-erection

Block Painting

Possible Configurations
1 - Connection to Central
Processing Platform (CPP)

Satellite
Platform
Satellite
Platform
Reservoir
Reservoir

FLNG

Mooring lines

Riser

SeabedPLET

Gas Pipeline

PLET

Gas Pipeline

2 – Full Well Stream
FLNG

Mooring lines
SeabedRiser
Reservoir

CentralProcessingPlatform

Advantages and where FLNG is applicable• Small and Stranded Gas Fields• Early Production System (EPS) for Gas• Faster Overall Project Schedule • Mobile and re-locatable
as compared to conventional• Difficulties in Building Plants Onshore
grass root facility

Key Design Considerations

Selection Criterias• Inherent safety design•• Production Capacity and Field
Development Strategy• Process robustness, efficiency andmarinisation•

onshore LNG Plant

Sea state conditions ( stabilityand structural integrity )reliability• Proven operational experience on

Research and development on•

Relative size of FLNG and LNGC

Key Technologies• Turret & Mooring System• Acid Gas Removal (AGR) Process• Liquefaction Process• Cargo Containment System• Marine Loading Arm

Key Technologies
Turret & Mooring System• Function: to station-keep theFLNG• External turret is employed• Considerations:– Provision for additional risers andumbilical at future location– Robustness against various
metocean data
– Internal vs external turret or othertype of mooring systems– Permanent or detachable– Cost competitivenessKey Technologies
Acid Gas Removal (AGR) Process
Function: to remove contaminants
Key parameters considered:•Reservoir gas compositions

E.g: Could be divided in phases
depending on field specific:
 Phase 1 = 10% CO2
 Phase 2 = 20% CO2•

High availability (marinisation)and other considerations due tomotion•

Smaller foot print•

Available technologies such asamine, membrane & hybrid
Source: BASF, 8th FLNG Conference, Korea

Key Technologies
Liquefaction Process• Function: to liquefy the natural gas• Several technologies considered from

Warm
ExpanderNaturalGas

various technology providers;
MiddleExpander– Dual N2, C3/MR, Cascade etc.
• Redundancy for increased availabilityand robustness

NitrogenRefrigeration• Rapid ramp-up• Safety consideration• N2 is selected due to lean gas field

ColdExpander
LNG
Source: APCIKey Technologies
Cargo Containment SystemMembrane
GTT Mark III• Function: to store the LNG• Available technologies: semi-prismatic,
moss, membrane etc.

Membrane
GTT No 96• Considerations:– Least susceptible to sloshing and Structural
Independent
Moss Type

Integrity– Footprint, weight & vessel displacement– Cost competitiveness– Operating cost and BOG efficiency

Independent
IHI-SPB– Shipyard capability and constructability
Source : GTT, IHI and Moss

Key Technologies
Marine Loading Arms

• Function: to transfer the LNG into the LNGC
• One of the most critical design consideration• Capability to load time to avoid plant shutdown• Ship to Ship or Side by side offloading withtargeting system• Safety Consideration• Require compatibility study between FLNG andLNGC• Highly dependent on:– Relative size of FLNG and LNGC
– Sea state conditions– Draft variations during off-loading– Working envelope

Source: OTC ASIA 2014, OTC-25000 Development of Floating LNG, Hamzah Ahmad.

Challenges in the development of FLNG
• No track record / reference• Marinisation of topsideequipment• Towing window due to typhoon• Feed gas composition vs. process designenvelop• Multi-product handling (LNG,condensate, LPG if any)

Conclusion• FLNG is a breakthrough technology and it is a game changer andrequire bold decision in becoming the pioneer.
• FLNG signifies technology advancement solution which adds value
to marginal and stranded offshore gas resources which otherwise
would be uneconomical to develop via onshore LNG• PETRONAS FLNG will become a reference / benchmark for future
projects• Design phase has considered all aspects of risk but the real
operational challenges & difficulties are yet to be experienced

END OF SLIDETHANK YOU23