Marine CNG as a Viable Small Field Development Strategy

1
Marine CNG as a Viable Small Field Development
Strategy
2
Centre for Marine CNG Inc.

• Newfoundlands only RD company exclusively
  dedicated to the oil gas industry
• Independent corporation
• Global focus on the efficient, safe and
  competitive transportation, storage, handling and
  usage of compressed natural gas
• Facilitating the development of a new technology

3
Our Team and Alliances

• Craig Young, P.Eng. Operations Manager
• Stephen Duffett, B.Comm. Business Advisor
• Heather Tucker Office Coordinator
• John Melville Offshore Systems Consultant
• Craig Ivany Laboratory Supervisor
• Dr. Majid Abdi, P.Eng. Senior Research
  Consultant (Process)
• Dr. Brian Veitch, P.Eng. Senior Research
  Advisor (Marine)
• Mr. Biswanath Saha Researcher (Chemical
  Engineering)
• Mr. Esam Jassim Researcher (Mechanical
  Engineering)
• Ms. Erika Beronich Researcher (Chemical
  Engineering)
• Michael Hanrahan Managing Director

4
Our Board of Directors

• Dr. Chris Loomis Chair - VP Research, Memorial
  University
• Mr. Bill Sember Vice Chair President, ABS
• Mr. Gunther Baumgartner Treasurer President,
  North Atlantic
• Dr. Bill Pike Editor in Chief, Hart Energy
  Publishing
• Mr. John ODea Secretary Partner, McInnis
  Cooper
• Mr. Mark Richards Versa Power
• Mr. Brian Condon ADM, Department of Natural
  Resources
• Dr. Ray Gosine Memorial University
• Dr. Jim Wright Memorial University
• Mr. Ruud Zoon Vice President, Husky Energy
• Mr. Andy Noseworthy Government of Canada
• Mr. Michael Hanrahan Managing Director

5
Our Members
          

                
                                               
6
Our Facility Capabilities
7
Our Facility Capabilities
8
Our Facility Capabilities
9
Commercial Projects

1. Preparation of the technical specifications for
   bid documents and participation on the technical
   review committee (Asia)
2. Preparation of a regulatory review road map and
   associated timeline for a natural gas producer
   (North America)
3. Analysis of gas behaviour for a marine CNG
   proponent (Central America)
4. Report on marine CNG technology and status of
   industry (South America)
5. Report on marine CNG technology and status of
   industry (South Africa)
6. Cost and economic evaluation of the feasibility
   of CNG trucking (West Africa)

10

• Marine Compressed Natural Gas

11
What is Marine CNG?
12
Possible CNG Application
13
Project Concept
14
Project Concept
15
Project Concept
16
Fewer Assets - Transferable Assets
Delivery Chain Capital Cost Comparison (US millions) (Source - Wood Mackenzie) LNG CNG
Gathering system / Liquefaction / Storage / Jetty 3,000 100
Loading Buoy(s) 0 50
Ship(s) 440 900
Unloading Jetty / Storage / Regas 500 100
Unloading Buoy(s) 0 50
Total Capital Cost 3,920 1,200
17
SIGALPHA - 1965

• Columbia Gas commissioned first CNG ship
• Bottle-type
• Tested around New York Harbor
• Two major constraints

• ASME standards drove cost of steel pressure
  vessels too high
• Natural gas traded at 0.60 and trended downward

18
TransCanada CNG Technologies Ltd.
19
EnerSea Transport LLC
20
(No Transcript)
21
Knutsen Group
22
Sea NG Corporation
23
CNG Projects

• Myanmar to India
• Proponent GAIL
• Status Expression of Interest Q1, 2006

24
CNG Projects

• Tanzania to Kenya
• Proponent Artumas Group Inc.
• Status awarded FEED to TransCanada in April

25
CNG Projects

• Oman to Pakistan
• Proponent Progas
• Status Pre-FEED

26
CDTech Example

• Gasoline desulphurization technology
• Unproven at commercial scale (c1999)
• Canadas largest refiner invest in technology to
  meet statutory requirements for low sulphur
• Why?
• The technology proponent presented creative
  commercial terms

27
Summary

• CNG for a Small Field Application
• Few fixed assets
• Reduced capital costs
• Scalable and transferable