Global Natural Gas Industry and Technologies

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Executive Vice President & COO, R&D Division, KOGAS

KOGAS R&D Division

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Contents

m KOGAS Overview

m Energy and Natural Gas in Korea

m Global Energy Trends and Natural Gas

m Global Gas Industry and Key Issues

m LNG Technology Innovations

m Closing Remarks

KOGAS R&D Division

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Natural Gas

Gas Well & Treatment LNG Liquefaction Plant LNG Carrier LNG Receiving Terminal

l (CH4) (C2H6), (C3H8), (C4H10), Natural

Gas Condensate CO2, N2, H2O, H2S
l LNG -162oC 1/600
LNG
l 50%, 70%
l 61
233 (IEA WEO 2013)
l , , , ,
,
KOGAS R&D Division
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KOGAS Overview
Long-term
Long- Major
LNG Suppliers Customers

Qatar
Brunei 31 City Gas
Oman Companies
51%
Malaysia
Indonesia
Australia
38 Power
Yemen
Import Storage Transmission Wholesale Plants
Russia
49%
Egypt

l KOGAS is solely responsible for nations import and supply of natural gas
l KOGAS is the worlds largest LNG importer (39.3 MT in 2013, 16.4% of world LNG production)
l KOGAS is developer, owner and operator of 4 world scale LNG receiving terminals and a
nationwide pipeline network of 4,240 km in Korea
l KOGAS participates in 30 overseas projects in 16 countries

KOGAS R&D Division

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 KOGAS Natural Gas Supply
u LNG Import in 2013
Incheon l LNG import of 38.9 MT in 2013
Terminal
SEOUL l Revenue in 2013 : KRW 37.4 trillion
u LNG Receivimg Terminals
Samcheok Terminal Start Storage (Mm3)
Terminal
Pyeongtaek Pyeongtaek 1986 3.36
Terminal
Incheon 1996 2.88 (3.48)
Tongyeong 2002 2.62
Samcheok 2014 0.60 (2.61)
Jeju Aewol 2018 (0.09)
The biggest LNG receiving terminals in the world
l 63 LNG Tanks (9.46Mm3) in service
Tongyeong l 9 LNG Tanks (2.01Mm3) under const.
Gwangyang Terminal
Jeju
Terminal Terminal u Transmission Pipeline (end 2014)
(posco)
Existing Line l 4,240 km in service
Under Const.
l 569 km under construction or planned
KOGAS R&D Division
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Kogas Overseas Projects

Umiak

Horn River
LNG Canada Cordova Kirkuk Pipeline EPC Surgil Chemical
Mansuria CNG
Akkas Uzunkui
Cyprus Zubair(oil)
Badra (oil) Rasgas Jiangsu LNG
Manzanillo LNG Emirates LNG Oman LNG Myanmar A1,A3
Yemen LNG Singapore LNG
Krueng Mane
DSLNG East Timor
Mozambique
Prelude FLNG Blue Energy
Maputo City Gas GLNG

Natural Gas Exploration (6)

Oil & Gas Production (10)
LNG Liquefaction Project (7)
Downstream Project (3)
Technical Service (4) KOGAS participates in 30 overseas projects in 16 countries
KOGAS R&D Division
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KOGAS R&D Activities

R&D Area R&D Activities

E&P (Exploration Conventional Oil & Gas, Shale Gas, CBM(Coalbed Methane)
& Production) Gas Hydrate, Deepwater Gas, Arctic Resources

Natural Gas Liquefaction Process (KSMR)

Liquefaction LNG Liquefaction Plant
LNG-FPSO(Floating Production, Storage and Offloading)
KC-1 LNG Cargo Containment System
Transport
LNG Bunkering
LNG Regasification Terminal, LNG Storage Tank
Regasification
LNG-FSRU(Floating Storage & Regasification Unit)
Intelligent PIG, Pipeline Inspection Robot, Anti-corrosion
Transmission Risk Assessment, Safety
TEG Power Generation (Turbo-expander Generator)
Fuel Cell, Hydrogen, NGV, Gas Cooling, CHP(Combined Heat & Power)
Gas Utilization
SNG(Synthetic Natural Gas), DME(Dimethyl Ether), GTL(Gas-to-Liquid)

KOGAS R&D Division

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Kogas R&D Performance
LNG Terminal

Geometry PIG

MFL PIG

270,000m3 LNG Storage Tank KC-1 LNG Carrier

KOGAS R&D Division
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World Primary Energy Demand
(Source : WEO 2013 & 2014, in the New Policies Scenario)

Year Total Oil Coal Gas Nuclear Renewable Fossil Fuel Share

2012 13,361 4,194 3,879 2,844 642 1,100 82%

2040 18,293 4,761 4,448 4,418 1,210 2,663 74%
CAAGR 1.1% 0.5% 0.5% 1.6% 2.3% 3.2%

KOGAS R&D Division

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 Natural Gas in Primary Energy

Natural Gas Share in Primary Energy Primary Energy Consumption 1991-2013

l 18.7% in Korea in 2013

l 24% in the World

l 26% in the OECD countries Oil

Coal
Natural Gas
Nuclear

Renewables & Others

Primary Energy Consumption in Korea in 2013

KOGAS R&D Division

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Power Generation by Fuel

Power Generation by Fuel in 2013

l 24.7% by Natural Gas Power Generation by Natural Gas 1986-2013

l 26.8% by Nuclear
24.7%
l 38.8% by Coal

Power Generation by Fuel in 2013

KOGAS R&D Division

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Fossil Energy Resources
(Source : WEO 2013)

Reserves Coal Natural Gas Oil

Proven 1,040 Bt 211 Tcm 1,702 Bb
Recoverable 21,204 Bt* 810 Tcm 5,965 Bb
*Total coal resources in WEO 2011, Bt : Billion tons. Bb : Billion barrels, Tcm : Trillion cubic meters

KOGAS R&D Division

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Natural Gas Resources

Conventio
Shale Gas CBM Deepwater Arctic
nal Gas
(80 Tcm) (50 Tcm)

Remaining Technically Recoverable Natural Gas Resources : 810 Tcm (28,605 Tcf)
(Source : WEO 2013)

l Conventional Gas 468 Tcm

l Unconventional Gas 343 Tcm
Shale Gas 212 Tcm
Tight Gas 81 Tcm
Coal Bed Methane 50 Tcm
l World Total 810 Tcm

v Natural Gas : 1 Tcm = 740 MT = 900 MTOE =35,700 TBtu (Trillion Btu)
v R/P Ratio : Reserves-to-Production Ratio

KOGAS R&D Division

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World Natural Gas Trades
(Source : BP Statistical Review of World Energy 2014)

PNG
56%
LNG
73%

Year 1995 2000 2005 2010 2013 Remarks

Production 2,142 2,432 2,776 3,193 3,770
Gas Trade 359 526 721 975 1,036
(%) 18.2 20.6 26.1 30.5 30.7

PNG 296 389 533 678 711

LNG 93 137 189 298 325
(%) 23.9 26.0 26.2 30.5 31.4

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Global Shale Gas Basins

(in trillion cubic meters)

KOGAS R&D Division

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Shale Gas Issues
l Technological Innovations l Shale Gas Environmental Issues
Horizontal Drilling Groundwater protection
Large Volume Hydraulic Fracturing
Hydraulic Fracturing Water sourcing and disposal (3,000~20,000m3 per well)
Fracturing fluids employed
Greenhouse Gas Emissions

US shale gas production : 9.63 Tcf in 2014

(~40% of total natural gas production)

KOGAS R&D Division

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 LNG Projects in North America (Source : www.ferc.gov)

Approved Proposed

Sabine Pas LNG, 2.27 Bcfd

Freeport LNG, 1.8 Bcfd
Cameron LNG, 1.7 Bcfd
Cove point LNG, 0.82 Bcfd
Corpus Christi LNG, 2.14 Bcfd

LNG Projects in North America (as of Feb. 5, 2015)

Potential
Status USA Canada # Total BCFD MTPA
Approved 5 - 5 9.2 65
Proposed 15 3 (36) 18 22.7 167
Potential 13 15 (214) 28 46.0 340
# Total 33 18 51 77.9 572
BCFD 44 34 78
MTPA 322 250 572
KOGAS R&D Division
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Sabine Pass LNG Project
LNG Regasification Terminal
Sabine Pass LNG Plant 853 acres (3.45 Mm2) in Cameron Parish
40 ft ship channel 3.7 miles from coast
2 berths, 4 dedicated tugs
5 LNG storage tanks (17 Bcf of storage)
4.3 Bcf/d (44.5 Bcm/y) peak vaporization
LNG re-export licenses approved

LNG Liquefaction Plant

Liquefaction capacity : 20 Mtpa (2.76 Bcfd)
Feed gas from natural gas grid at HH price
Additional equipment to include:
- ConocoPhillips' OCP LNG trains
- 6 GE LM2500 + G4 gas turbine driven
refrigerant compressors per train
- SAC water injection for emissions control
- BASF aMDEA acid gas removal unit

KOGAS R&D Division

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Mozambique & Mediterranean Sea
A1
A4
The largest gas reserves
discovered in this century
l Area 1 : 50~70 Tcf
l Area 4 : 85 Tcf
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Cyprus #2, 3, 9 (KOGAS)
l Tamar : 10.8 Tcf
l Laviathan : 21.9 Tcf
Floating LNG for Tamar gas
Subsea Pipeline to Turkey and Egypt
KOGAS R&D Division
 CSG-to-LNG Projects in Australia
l 4 CSG-to-LNG projects in Curtiss Island
l Liquefaction capacity : 33.3 mtpa 58 mtpa

Project Operator MTPA Start Status

GLNG Santos 7.8 (10) 2015 EPC
APLNG Origin 9.0 (18) 2015 EPC
QCLNG BG 8.5 (12) 2015 Operation

Arrow LNG Arrow 8.0 (18) 2017 FEED

KOGAS R&D Division

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CCS in Gas Projects

Snohvit

Weyburn Sleipner

In Salah

CO2 Injection CO2 Injection Remarks

Project Country
(Annual, Mt) (Lifetime, Mt) (start year)
Weyburn US-Canada 2.0 30 SNG, EOR, 2000

In Salah Algeria 1.2 17 Gas plant, 2004

Gorgon
Sleipner Norway 1.0 20 Gas plant, 1996

Snohvit Norway 0.7 23 LNG plant, 2008

Gorgon Australia 4.0 120 LNG plant, 2017

KOGAS R&D Division

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Technologies on LNG Value Chain

Gas Well & Treatment LNG Liquefaction Plant LNG Carrier LNG Receiving Terminal

LNG FPSO

Conventional LNG Value Chain

Gas Production Liquefaction LNG LNG Regas Gas

Fields Facilities Plant Carrier Terminal Users

LNG FSRU

LNG RV

CNG Carrier

KOGAS R&D Division

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LNG Value Chain
CO2
H2S Hg

Production Acid Gas Mercury

Gas Wells Dehydration
Facilities Removal Removal

Field Condensate H2O

Produced Water

LNG NGL
Transport Liquefaction
Storage Recovery

Heavier
LNG
HCs
Fractionation

Ethane
Propane
Butane
LNG Gas Condensate
Regasification Transmission
Storage Users

KOGAS R&D Division

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LNG Liquefaction Plants as of September 2014

m 59 liquefaction plants in operation in 20 countries

l 20 LNG export countries
Algeria, Angola, Australia, Brunei, Egypt, Equatorial Guinea, Indonesia, Libya, Malaysia, Nigeria, Norway,
Oman, Papua New Guinea, Peru, Qatar, Russia, Trinidad & Tobago, UAE, USA, Yemen
l Liquefaction capacity : 305 mtpa (97 trains)
v Qatar : 77.4 mtpa (~25% of world LNG production capacity)
v 3 LNG plants closed : Kenai, Arzew GL 4Z & GL 1K Phase 1

m 18 liquefaction plants under construction

l Liquefaction capacity : 116 mtpa (29 trains)
l Australia will be the worlds largest LNG export country in 2017
l 24 mtpa (current) + 62 mtpa (9 projects under construction ) = 84 mtpa

m 40 liquefaction plants planned

l Liquefaction capacity : ~302 mtpa (76 trains)

KOGAS R&D Division

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 Baseload Liquefaction Plants

Kenai
(closed)
Snohvit
Yamal LNG

Sakhalin-II
Gassi Touil
Skikda Qatargas
Sabine Pass Arzew Rasgas
Idku
Bethioua Assaluyeh
Marsa Damietta Das Island
el Brega
Oman
Yemen
Atlantic MLNG Brunei
LNG NLNG Arun Bontang
EGLNG DSLNG
Tangguh
Prelude
Soyo Gorgon PNG
Camisea Angola Pluto Darwin
NWS
Wheatstone
QCLNG
APLNG
GLNG

5 Biggest LNG Export Countries in 2012 (in bcm)

Qatar (105.4), Malaysia (31.8), Australia (28.1), Nigeria (27.2), Indonesia (25.0)

KOGAS R&D Division

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LNG Liquefaction Plant

Train 3
Train 2
Train 1 Power Plant

Trestle
to Jetty

KOGAS R&D Division

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LNG-FPSO & Subsea System

LNG FPSO
Turret
LNG Carrier

Mooring Lines

Anchors Flexible Risers RBM

Umbilicals

Gas Well Center

Flowlines

Wellheads

l Prelude FLNG (Australia, Shell) : 3.6 mtpa (450K, 482x74x42), EPC

l Malaysia FLNG (Petronas) : 1.2 mtpa, EPC
l Flex LNG : 1.7 mtpa (220K), EPC (suspended)
l Browse FLNG (Australia, Woodside) : 2.5 mtpa, planned
l Santos FLNG (Brazil) : 2.7 mtpa, planned
KOGAS R&D Division
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LNG Regasification Terminal (as of November 2013)

m 108 LNG regasification terminals in operation

l 30 LNG import countries
Argentina, Belgium, Brazil, Canada, Chile, China, Dominican Republic, France, Greece, India, Indonesia,
Israel, Italy, Japan, Malaysia, Mexico, Netherlands, Portugal, Puerto Rico, Singapore, South Korea, Kuwait,
Spain, Sweden, Taiwan, Thailand, Turkey, UAE, UK, USA
l 31 regasification terminals in Japan (179 tanks ~16 million m3 of storage)
l 19 offshore terminals (7 RV, 9 FSRU, 2 FSU, 1 GBS)
LNG-RV : [USA] Gulf Gateway(2005), Northeast Gateway(2008), Neptune LNG(2010), [UK] Teesside
LNG GasPort(2007), [Argentina] Bahia Blanca GasPort(2008), Puerto Escobar(2011), [Kuwait] Mina Al-
Ahmadi GasPort(2009)
LNG-FSRU : [Italy] FSRU Toscana(2013), [Brazil] Pecem FSRU(2009), Rio FSRU(2009), Salvador
Bahia FSRU(2014), [UAE] Dubai FSRU(2010), [Indonesia] Nusantra Regas Satu(2012), Medan
FSRU(2014), [Israel] Hadera FSRU(2012), [China] Tianjin FSRU(2014)
LNG-FSU : [Chile] Mejillones LNG(2010), [Malaysia] RGT Sungai Udang(2013)
LNG-GBS : [Italy] Adriatic LNG(2009)
m 24 regasification terminals under construction
7 offshore plants
m 22 regasification terminals planned

KOGAS R&D Division

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LNG Regasification Terminals

1
4
1 1
3 1
12 7 3 1 2
1 1 9 5 31
3 1
1
4 2
1 1
1 11
2

3
2
2
5 Biggest LNG Import Countries in 2012 (in bcm)
Japan (118.5), Korea (49.7), Spain (21.4), India (20.5), China (20), Taiwan (16.9)

KOGAS R&D Division

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Samcheok LNG Terminal (designed by Kogas R&D)
l Unloading : 15,000 m3/h
l LNG storage : 2.61 million m3
9 tanks x 200,000m3
3 tanks x 270,000m3
l 7 BOG compressors x 12,000m3/h
l 2 Recondensers x 30 ton/h
l Vaporization : 1,320 ton/h
6 ORVs x 180t/h, 2 SMVs x 120t/h
l 1st phase operation in July 2014

KOGAS R&D Division

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LNG-RV (SRV)

LNG-RV
LNG-RV Turret

Mooring
Standby
TMS

Flexible
Riser

Subsea Pipeline

l USA : Gulf Gateway (2005), Northeast Gateway (2008), Neptune LNG (2010)
l UK : Teesside LNG GasPort (2007), l Kuwait : Mina Al-Ahmadi GasPort (2009)
l Argentina : Bahia Blanca GasPort (2008), Puerto Escobar (2011)

KOGAS R&D Division

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 LNG-FSRU

Converted LNG-FSRUs
l Pecem (Brazil) : 2.5bcm, Golar Spirit (Moss, 1981, 2009)
l Rio (Brazil) : 5.1bcm, Golar Winter (NO96, 2004, 2009)
l Dubai (UAE) : 4.0bcm, Golar Freeze (Moss, 1977, 2010)
l Livorno (Italy) : 5.0bcm, Golar Frost (Moss, 2004, 2011)
l West Java FSRU (Indonesia Nusantara Regas) : Khannur
(Moss, 1977, 2012)
l Puerto Escobar (Argentina) : Exemplar (2011, 150K)
l PetroSA (South Africa) : Gandria (Moss, 1977, under conv.)
l Hilli (Moss,1975) and Gimi (Moss,1976) under conversion

Newbuild LNG-FSRUs
Uncommitted Newbuild FSRUs
l Lithuania FSRU (Hoegh, HHI 170K, Mk III, 2012)
l Golar Tundra : 7.5bcm (SHI 170K, Mk III, 2015)
l PGN Lampung FSRU : (Hoegh, HHI 170K, Mk III, 2013)
l Independence (Hoegh, HHI 170K, Mk III, 2014)
l Quintero FSRU : Gallant (Hoegh, HHI 170K, Mk III, 2014)
l Hoegh FSRU 4 (Hoegh, HHI 170K, Mk III, 2015)
l KNPC FSRU : 7.5bcm, Golar Igloo (SHI 170K Mk III, 2014)
l Excelsoir (Excelerate, 138K, 2005)
l Jordan FSRU : 7.5bcm, Golar Eskimo (SHI 160K, 2014)
l Explorer (Excelerate, 151K, 2008)
l Guanabara LNG FSRU (Brazil Petrobras) : 800mmscfd,
Experience (Excelerate, DSME NO96, 173K, 2014)
l Uruguay FSRU : (GDF Suez, DSME NO96, 263K, 2016)
KOGAS R&D Division
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LNG Ship Building (as of August 2014)

l 395 LNG vessels in operation (58.3 Mm3)

l 140 LNG vessels in orderbook (23.3 Mm3)

KOGAS R&D Division

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Market Share of LNG Shipbuilding

KOGAS R&D Division

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m , , ,
, ,
m , 2025~2035
1
m LNG ,
LNG
m LNG 2020
LNG
LNG
m
(LNG)

KOGAS R&D Division

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