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LNG Import Terminal

Cost and Schedule Basics


Presenter: Gerald Humphrey
Senior Vice President
Global LNG Sales
CB&I Lummus
GHumphrey@CBI.com
Engineering Solutions . . . Delivering Results

CB&I Overview
Chicago Bridge & Iron, N.V.
Founded in 1889
$7.2 Billion Backlog at Year End 2009
75% Outside of the U.S.
50/50 Lump Sum vs. Reimbursable
95% Energy Infrastructure

16,000 Employees
50,000 Subcontractors
20 Principal Global Locations
Technology, EPFC, and Tank Supply
Lummus Technology
CB&I Lummus
CB&I Steel Plate Structures

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Operating Structure Business Units


CB&I designs, engineers and constructs some of the worlds largest energy infrastructure
projects, combining technology with a full spectrum of engineering, procurement, steel plate
fabrication, field construction, and modular fabrication and construction services.
Lummus
Technology

Technology:
Petrochemicals Technology
Refining Technology
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Performance Catalysts
Heat Transfer Equipment
Aftermarket Services

CB&I Steel Plate


Structures

CB&I Lummus

EPFCC Execution:
Offshore Oil & Gas Production
Onshore Oil & Gas Production
Liquefied Natural Gas (LNG)
Onshore Pipelines
Gas Processing
Sulfur Block
Refining
Petrochemicals
Hydrogen and Synthesis Gas

Supply and Installation:


Aboveground Storage Tanks
LNG Peak Shaving Facilities
LNG and Other Low
Temperature/Cryogenic Storage
Elevated Storage Tanks
Hortonsphere Pressure Vessels
Specialty Structures
Power
3

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CB&I Services
Services Across Hydrocarbon Value Chain
Oil & Gas
Production /
Transportation

Planning
Study
Market Analysis
Conceptual
Design
Economic
Feasibility

Gas Processing / LNG

Technology
Licensing
Basic
Engineering

Refining

FEED

EPFC

Petrochemicals

Startup

Plant
Service

Master
Project
Commissioning Process
Schedule
Implementation Operating
Improvement
Cost Estimate
Manual
Upgrading
Engineering
Turnaround
Execution Plan

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LNG Import Terminals


CB&I has a long heritage within the
LNG industry (50+ years)
CB&I designed the LNG tanks for the
export and receiving ends of the first
shipment of LNG from Lake Charles,
LA to Canvey Island, UK in 1958
CB&I have in-house capabilities to
execute the terminals full EPC scope
from ship unloading to storage and
vaporization / sendout
Since 1971 CB&I have designed and
built
9 Grassroots Terminals
8 Terminal Expansions
14 constructed since 2000
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Engineering Solutions . . . Delivering Results

LNG Terminal Block Flow Diagram

Engineering Solutions . . . Delivering Results

Project Profile Golden Pass Terminal


Client:

ExxonMobil, Qatar
Petroleum and Conoco
Phillips

Location:

Sabine Pass, Texas

Schedule: Phase 1 completed in 2010


Phase 2 completes 2011
Project
Value:
EPC
Scope of
Work:

$1.1 Billion
Ship Unloading System
5 x 155,000 m3 Full
Containment Tanks
2 BSCFD Regas and
Sendout

Engineering Solutions . . . Delivering Results

Project Profile South Hook Terminal


Client:

ExxonMobil and Qatar


Petroleum

Location:

Milford Haven, Wales

Schedule:

Phase 1 completed 2009


Phase 2 completed 2010
$1.3 Billion

Project Value:

EPC
Scope of
Work:

Ship Unloading System;


160,000 DWT Jetty
5 x 155,000 m3 Full
Containment Tanks
2 BSCFD Regas and
Sendout
Engineering Solutions . . . Delivering Results

Project Profile Grain Terminal


Client:

Grain LNG Ltd.

Location:

Kent, U.K.

Schedule:

Ph II 2008 & Ph III 2010

Project
Value:

$ 1.0 Billion

EPC
Scope of
Work:

Increase Regas and


Sendout Capacity to 1.7
BSCFD
3 x 190,000 m3 Full
Containment Tanks
BOG Compression &
Recondenser
New Control Building
Integration Into &
Expansion of Facilities
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Engineering Solutions . . . Delivering Results

Project Profile Fujian Terminal

Client:

CNOOC / Fujian LNG Co.


Ltd.

Location:

Fujian Province, PRC

Schedule:

Completed 2008

Project
Value:

$250 MM

EPC
Scope of
Work:

Ship Unloading System


2 x 160,000 m3 Full
Containment Tanks
350 MMSCFD
Regasification and
Sendout

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Engineering Solutions . . . Delivering Results

Project Profile GNL Quintero Terminal

EPC Scope of
Work:

Client:

GNL Quintero S.A.

Location:

Quintero Bay, Chile

Schedule:

Completed 2010

Project Value:

$775 MM

New marine jetty with complete ship


unloading facilities
2 x 160,000 m3 Full Containment
tanks
One smaller storage tank (10,000 m3)
400 MMSCFD Regas and Sendout
Engineering Solutions . . . Delivering Results

Project Profile AES LNG Terminal

EPC Scope
of Work:

Client:

AES Corporation

Location:

Dominican Republic

Schedule:

Completed 2003

Project Value:

$ 70 mil

Jetty capable of offloading ships from 35,000 m3


to 145,000 m3
Single containment tank (160,000 m3)
125 MMSCFD Regas and Sendout
Provides fuel gas for a 300 MW power station
Thermal integration with power plant for improved
efficiency
Engineering Solutions . . . Delivering Results

Project Profile EcoElectrica Terminal

EPC Scope
of Work:

Client:

EcoElectrica

Location:

Puerto Rico

Schedule:

Completed 2000

Project Value:

$ 150 mil

Jetty capable of offloading ships from 35,000 m3


to 145,000 m3
Double containment tank (160,000 m3)
93 MMSCFD Regas and Sendout
Provides fuel gas for a 500 MW power station
Thermal integration with power plant for improved
efficiency
Engineering Solutions . . . Delivering Results

The LNG Value Chain


LNG Liquefaction

LNG Regasification

Engineering Solutions . . . Delivering Results

LNG Value Chain : Typical Costs & Returns

5 Mt
$400 per
tonne capacity

5 Mt single train
$750 per
tonne capacity

5 ships
$220M
per ship

US$2.0bn

US$3.75bn

US$1.1bn

(27%)

(50%)

(15%)

$90M per
1 BCM/yr capacity

US$0.6bn US$7.45 bn
(8%)

(100%)

13.7%

Source : Wood Mackenzie, Deutsche Bank


Engineering Solutions . . . Delivering Results

Import Terminal EPC Cost Trend


European Regas Costs* Under Pressure

EPC Unit Costs (US$ million/(Bcm/y)

Fos Cavaou

Projects completing
2008 to 2012 were
awarded in 2004 to
2008

100
South Hook
LNG

80

Dragon LNG

60

Sines

40

Bahia di
Bizkaia

Grain 1 Reganosa

Grain 3
Expansion

Grain 2
Expansion

Numbers are not


absolutes due to scope
of work differences; they
reflect a trend only

South Hook
LNG Phase II
Zeebrugge
Expansion

20

02000

2002

2004
2006
2008
Start-up Date

* Data from company press releases


** Estimated Cost

16

GATE LNG
Terminal**

CB&I

2010

2012

Source: Poten & Partners

Engineering Solutions . . . Delivering Results

Import Terminal Schedule & Cost Drivers


LNG Tank Types
Single Containment
Double Containment
Full containment with steel roof
Full Containment with concrete roof
Single containment tanks require a bunded area around them to
meet code requirements which requires more plot space
The over schedule for the terminal is normally controlled by the
tank schedule duration.

One 160,000 m3 FC tank takes around 36 months to engineer


and construct
Schedule varies by 4 to 6 months between single and double /
full containment tank types
Costs vary from a factor of 1.0 for single containment to 1.7 for
double or full containment tanks
Engineering Solutions . . . Delivering Results

Single Containment LNG Tank


Carbon Steel Outer
Tank Roof, Shell
& Bottom

Sidewall/Deck
Insulation
System

Concrete Foundation

Suspended Insulation Deck

9% Ni Inner Tank

Load Bearing Bottom


Insulation System

Foundation Heaters

Engineering Solutions . . . Delivering Results

Double Containment LNG Tank


Carbon Steel Outer
Tank Roof, Shell
& Bottom

Suspended Deck & Insulation

Cover if
required
Loose fill perlite
Insulation
System
Pre-stressed
concrete
outer tank
wall
9% Ni Outer
Bottom & Liner

9% Ni Inner Tank

Outer shell
not able to
contain
liquid

Load Bearing Bottom


Insulation System

Foundation Heaters
Concrete Foundation

Engineering Solutions . . . Delivering Results

Full Containment (Steel Roof) LNG Tank


Suspended Insulation Deck
Carbon Steel
Dome Roof
9% Ni Inner Tank
Sidewall/Deck
Insulation
System
Vapor Barrier

Prestressed
Concrete
Wall
9% Ni Bottom
& Corner Protection

Concrete Foundation

Load Bearing Bottom


Insulation System

Foundation Heaters

Engineering Solutions . . . Delivering Results

Full Containment (Concrete Roof) LNG Tank


Suspended Insulation Deck
Concrete & Steel
Dome Roof
9% Ni Inner Tank

Sidewall/Deck
Insulation
System
Vapor Barrier

Prestressed
Concrete
Wall
9% Ni Bottom
& Corner Protection

Concrete Foundation

Load Bearing Bottom


Insulation System

Foundation Heaters

Engineering Solutions . . . Delivering Results

Import Terminal Cost Drivers


LNG Jetty Type

Berth type

Trestle type

Most LNG ships require a minimum depth of 15 m


Jetty type is dictated by access to deep water vs dredging costs
Trestle type jetties will normally control overall terminal schedule
if the trestle length exceeds 1 km
Engineering Solutions . . . Delivering Results

CB&I

August 2009

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Engineering Solutions . . . Delivering Results