TECHNIP S LNG AND GTL CAPABILITIES Gérard RENAUDIN Chief Technology Officer LNG Business Unit INVESTOR DAY, PARIS, FRANCE - October 22, 2004
I. TECHNIP S LNG CAPABILITY 1. THE LIQUEFIED NATURAL GAS CHAIN 2. LNG: WHAT DOES IT NEED? 3. TECHNIP S REFERENCES 4. LNG RESEARCH & DEVELOPMENT 5. LNG: TECHNIP S GOAL 101
THE LIQUEFIED NATURAL GAS CHAIN NATURAL GAS PRODUCTION GAS TREATMENT AND LIQUEFACTION REGASIFICATION TRANSPORTATION: -160 C 102
LNG: WHAT DOES IT NEED? Engineering / Procurement / Construction skills to take care of:! Safe, reliable and efficient schemes! Largest compressors and drivers in the process industry! Special heat exchangers (coil wound exchangers, cold boxes) Technip s Know-How! Large and high pressure vessels Capabilities in managing large projects: 1.5 million of engineering man-hours; 20 million of construction man-hours Capabilities in financial engineering: US$ 1.5-2.0 billion 103
LNG: TECHNIP'S REFERENCES 1/2 TECHNOLOGY! Until the early 1990s, development of the Tealarc liquefaction process that paved the way for new technologies: Shell, Axens, Linde! Technip owns several patents on improvements of liquefaction schemes PROJECT REALIZATIONS! First base load plant (Camel in Algeria) 40 years ago! First 3 trains of the Skikda plant! Bonny Island (Nigeria) complex: from train 1 (1996) to train 6 (2004)! Debottlenecking of Qatargas plant! Bontang train I Contract awarded to Chiyoda/Technip/IKPT, not in force yet Qatargas Plant 104
LNG: TECHNIP'S REFERENCES 2/2 FRONT END ENGINEERING DESIGN! Yemen LNG! Iran NIOC LNG (JV with JGC)! Iran Pars LNG: Pre-FEED studies RECEIVING TERMINALS Technip entered into the competition only 3 years ago! FEED for Freeport LNG Terminal On-going negotiations for EPC! Cameron LNG Terminal (Sempra Energy) Proposal on-going Freeport Terminal, USA 105
LNG RESEARCH & DEVELOPMENT TWO EXAMPLES:! CRYOGENIC FLEXIBLE FOR LNG TRANSFER! OFFSHORE RECEIVING TERMINAL 106
LNG: TECHNIP'S GOAL Technip Has access to all liquefaction technologies (except Phillips) with priority to APCI (APCI "club") Has the technical expertise and resources but fewer references than top players (KBR, JGC, Chiyoda, Bechtel) Has the financial strength Has the financial engineering expertise Is well positioned in the Middle East, Far East and West Africa TECHNIP'S GOAL To strengthen its position among the world leading engineering/contractors for LNG trains Is a world leader in LSTK contracting 107
II. TECHNIP S GTL CAPABILITY 1. THE GAS-TO-LIQUIDS CHAIN 2. GTL: PROCESS OVERVIEW 3. GTL TECHNIP'S REFERENCES 108
THE GAS-TO-LIQUIDS CHAIN FISHER-TROPSCH SYNTHESIS NATURAL GAS PRODUCTION DISTRIBUTION VERY CLEAN PRODUCTS (Diesel, Naphtha) LIQUIDS EASY TO TRANSPORT No Sulfur No Aromatics High cetane number 109
GTL: PROCESS OVERVIEW TWO FIELDS WHERE TECHNIP IS A LEADER Air Air Air Separation Separation Unit Unit Natural Oxygen Gas 3 rd PARTY TECHNOLOGY Hydrogen Hydrogen Production Production Synthesis Synthesis Gas Gas Production Production Fischer-Tropsch Fischer-Tropsch Conversion Conversion Product Product Refining Refining Liquids Products 110
GTL: TECHNIP'S REFERENCES SYNTHESIS GAS PRODUCTION! Apart from GTL, large Syngas production is required for ammonia, methanol and hydrogen plants! Technip has built more than 40 ammonia or methanol plants! Technip is the world leader for hydrogen with more than 190 plants PRODUCT REFINING! Conventional refining units: Tens of such units in Technip's reference list FISCHER-TROPSCH CONVERSION! Only 5 plants in the world! The last two plants are built by Technip: " Petro-SA Mossel Bay (South Africa) 1,000 bpd - Statoil technology " Oryx GTL Ltd. Ras Laffan (Qatar) 34,000 bpd - Sasol technology Under construction 111
III. CONCLUSION 112
CONCLUSION The LNG demand is increasing fast (UK, USA, China, India) GTL is a new route for natural gas monetization Both segments are characterised by large scale contracts Technip has the experience required to manage such projects Technip is invited to tender on all projects in open competition Technip has the capability to take advantage of the expected growth in LNG & GTL 113
For more information, please contact: INVESTOR RELATIONS G. Christopher Welton Tel. +33 (0) 1 47 48 66 74 e-mail: cwelton@technip.com David-Alexandre Guez Tel. +33 (0) 1 47 78 27 85 e-mail: daguez@technip.com 114
TRADING TECHNIP ISIN FR0000131708 115