Enabling a Brighter Tomorrow: E-Gas TM Gasification U.S. China Oil & Gas Industry Forum September 11, 2007 San Francisco, CA Doug Sauer Manager, Asia Business Development, E-Gas Gasification Doug.b.sauer@conocophillips.com
Outline ConocoPhillips & China Gasification Market Overview E-Gas TM Technology E-Gas Projects 2
E-Gas TM Technology Applications are under review in several of ConocoPhillips primary operating areas 3
COP China Business Scope Beijing Main China office Bohai Bay - Bohai Phase I & II Developments & Exploration South China Sea Xijiang - 17 Mbopd net, 17% WI Panyu 11Mbopd net, 24.5% WI Sichuan - Bajiaochang Development Bohai 11/05 Bohai Phase I, II projects 49% WI Phase I, 13 Mbopd net Phase II first oil thru new FPSO in 2008, 80 Mbopd net Tanggu Shekou Hong Kong Shanghai FPSO Hull, Plastics Plants Chev/P JV Shanghai Zhejiang Taiwan Bohai Exploration COP 100% Over 20 high probability of success prospects Sichuan Bajiaochang 12 MMscfd, 100% WI LNG & Mid stream opportunities South China Sea - Xijiang Development 4 South China Sea - Panyu Development Shekou Operations office & shore base
COP China Facts 1973 - Invited with other foreign operators to China in 1973 1981 - Awarded South China offshore blocks Xijiang discovery in 1985 1994 - Xijiang first oil 1998 - Start up of Polyethylene plant in Jinshanwei 1999 - Discovery of PL 19-3 - largest offshore Oil Field in China 2002 - First foreign operated production in Bohai Bay 2005 - Bohai Phase II ODP approved 2006 - Acquisition of Burlington China assets completed 1 April Approximately $1.4 billion of Exploration and Development investments in China $2.8 billion upon Bohai Phase II completion Currently employ 600 Chinese national employees and contractors 5
Multi-Fuel, Multi-Product Gasification Technology Feedstock Options Bituminous Sub-Bituminous Pet Coke MSW Sludge Biomass Waste oils Plastics Gasification Technology Gasification Products Slag Elemental Sulfur 6 Clean Low-cost Syngas Product Options IGCC Chemical Production Fuels Active E-Gas Projects Power & Steam Hydrogen Ammonia CO Methanol Acetic Acid SNG Diesel Naphtha Jet Fuel Gasoline DME
Estimated Air Emissions: Coal-Based Power Plants 1.4 SO2 NOx PM/PM10 1.2 1 lb / MMBtu 0.8 0.6 0.4 0.2 0 Old PC(1) SCPC(2) CFB(3) Wabash IGCC(4) 2010 IGCC 1) ConocoPhillips in-house estimates for un-scrubbed PC plants in the US 2) Wisconsin Electric Power SCPC information from April 2003 Draft Environmental Impact Statement, Elm Road Generating Station, Volume 1, Public Service Commission of Wisconsin & Department of Natural Resources, Table 7-11, p. 155 (Pittsburgh No. 8 coal) 3) Supplemental Information for PSD Permit Application, March 25, 2003, Prepared by Earth Tech, Inc. for Indeck - Elwood, LLC. 4) Wabash River Repowering Project, 1999 average reported to IDNR 7
Survey Results Operating Plant Statistics 2004 vs. 2007 2004 117 operating plants 385 gasifiers Capacity~45,000 MWth Feeds Coal 49%, Pet. Resid. 36% Products Chemicals 37%, F-T 36%, Power 19% 2007 138 Operating Plants 417 Gasifiers Capacity~56,000 MWth Feeds Coal 55%, Pet. Resid. 32% Products Chemicals 44%, F-T 30%, Power 18% Source: Gasification Technologies Council June 12, 2007
Geographical Distribution of World Gasification Capacity (MW th Equivalent) 30,000 25,000 Planned (2010) Operating (2007) 20,000 15,000 10,000 5,000 0 C&S America North America Europe Asia/Aust. Afr/ME Source: Gasification Technologies Council June 12, 2007
World Gasification Capacity Growth (MWth Equivalent) 80,000 70,000 2007 Survey 2004 Survey 60,000 50,000 40,000 2000 2002 2004 2006 2008 2010 Source: Gasification Technologies Council June 12, 2007
Successful Scale-ups on Multiple Feedstocks 1975 Pilot 36 TPD 1979 Proto 1-400 TPD 1983 Proto 2-1600 TPD LGTI 1987 2,400 TPD Wabash 1995 2,600 TPD Lignite Sub-bituminous Sub-bituminous Bituminous IL #6 coal Petcoke Multiple refineries. * TPD = short tons per day per gasifier E-Gas TM Technology has over 20 yrs commercial experience 11
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E-Gas Gasification Offering LICENSING Expanding Business to include China Current Offering of over 3,000 ton/day Coke or Coal per train Feasibility & Optimization Studies Process Design Content Project Design & Construction Assistance Start-up Assistance In-Country Equipment Sourcing Training & Operations Support Sub-bituminous Coal Bituminous coal Petcoke *3D Model by ConocoPhillips & Fluor 13
U.S. Midwest SNG Project Mine-mouth project producing 50 70 billion cubic feet/yr substitute natural gas (SNG) Joint development between ConocoPhillips and Peabody Processes 3.5 million tons/yr of coal and ConocoPhillips supplied petroleum coke Milestones Public announcement July 2007 Feasibility study completed Preliminary design and economic assessment to be complete early 2008 14
U.S. Nat. Gas Production is Short of Demand TCF 28 26 24 22 20 18 16 14 Domestic Production Domestic Consumption Actual Projected Imports 12 10 The US is short on Natural Gas 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 Source: DOE/EIA-Report#0383 (2006) & EIA Annual Energy Review (2005) Table 6.1 15
Drivers for SNG Production China is also short on natural gas and oil but long on coal High Awareness: Coal-to-transportation fuel: CTL, Methanol, DME Less Awareness: Coal-to-natural gas applications: SNG Pipeline natural gas quality ~ 90% methane, > 950 btu/scf HHV SNG is not town gas: Safer because of low CO content & fungible with natural gas because of high heat content SNG produced by coal gasification can augment China natural gas supplies and LNG imports Utilizes known, domestic China coal reserves Increases energy supply diversity 16
UK Carbon Capture & Storage Project World class 734 MWe CHP plant, Immingham, UK 450 MW expansion to 1184 MW in construction commercial operation 2 nd Qtr 2009 Provides critical steam supply to 25% of UK refining capacity Project: Refueling existing gas turbines with syngas produced from petcoke or coal Designing for 90% carbon capture Carbon sequestration in North Sea Government incentives important Milestones Feasibility Study underway 17
Immingham CCS Vision Increased Oil Reserves Through EOR Humber Refinery Lindsey Refinery ------- Steam Power Immingham CHP Steam Hydrogen Nitrogen Power To Grid Large oil fields Northern North Sea UK & Norway Transport & Injection Into Oil Reservoirs for Enhanced Oil Recovery Hydrogen EGAS Clean Up + Conversion to Hydrogen & CO2 Captured CO2 to Storage Depleted Gas Reservoirs: Southern North Sea Imported Pet Coke / Coal 18
Summary: ConocoPhillips E-Gas Technology is Ideal Enables conversion of coal and pet coke into multitude of valuable energy products Provides environmental advantages over combustion especially when CO2 capture is required E-Gas Technology Advantages: Feedstock flexibility (100% Coal to 100% Petcoke) Unique slag removal system lowers profile & lowers costs Advanced slurry-based technology improves efficiency Commercially proven for over 20 years Competitive & economically viable CapEx & OpEx Gasification should play a significant role in efforts to diversify future energy needs 19
E-Gas Technology for Gasification Enabling a Brighter Tomorrow : Tomorrow begins today 20