Pressurised Natural Gas Carrier PNG An Economic Delivery

Pressurised Natural Gas Carrier – PNG An Economic Delivery System For Stranded Gas Resources Presented by Lim Man Onn APEC EGCFE Workshop, Taipei CEO, Partnership for Equitable Growth 21 -23 March 2005 1

Pressurised Natural Gas Carrier – PNG q A new method for safe, cost-effective and reliable gas transportation system q Innovative application of known technology q Unlock stranded and static resources which are uneconomic under LNG and pipeline schemes q Various PNG concepts considered including Ø Fluor LNG Coselle Ø Knutsen OAS PNG Carrier with DVN certification Ø Enersea and Trans Canada concepts with ABS and Lloyds classification approvals 2

Pressurised Natural Gas Carrier – PNG Technical Parameters of Knutsen Standard Size Carrier q Operating pressure : 240 bars or 3, 500 psig q No of gas cylinder : 2, 672 q Volume of gas carrier : 20 Ksm 3 or 20, 000 DWT L 0 A = 276 m Beam : 54 m Draft Ballast : 11 m Service speed : 15. 5 knots Draft design : 13. 5 m 3

Pressurised Natural Gas - PNG Carrier (for the transportation of natural gas directly from the source to the market) 4

An Illustration of the PNG Pipe System 5

Number of PNG Carriers required for delivery of 500 Mcf/day of gas for different distances to market Distance to Market (Km) Number of Knutsen Standard Size Ship 1, 000 6 2, 000 12 3, 500 21 5, 000 30 Knutsen Standard Ship = 20, 000 DWT Service speed = 15. 5 knots Service days/year = 330 Aggregate field size required = 4 TCF or 8 x 500 Bcf fields 6

Delivery Cost versus Distance Relationship - PNG 7

Pressurised Natural Gas Carrier – PNG A flexible and scalable infrastructure delivery system q Higher unit cost of PNG versus LNG vessels more than offset by absence of LNG liquefaction and receiving terminals q Scalability of PNG systems “commoditize” gas trading q Free buyer from long term, large volume take or pay commitment q Could potentially commercialize 30% of discovered stranded and static resources 8