LNG Import Terminal Cost and Schedule Basics

LNG Import Terminal
Cost and Schedule Basics

Presenter: Gerald Humphrey
Senior Vice President
Global LNG Sales
CB&I Lummus
GHumphrey@CBI.com
Engineering Solutions . . . Delivering Results
CB&I Overview
Chicago Bridge & Iron, N.V.
Founded in 1889
$7.2 Billion Backlog at Year End 2009
75% Outside of the U.S.
50/50 Lump Sum vs. Reimbursable
95% Energy Infrastructure
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50,000 Subcontractors
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Technology, EPFC, and Tank Supply
Lummus Technology
CB&I Lummus
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Operating Structure Business Units

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projects, combining technology with a full spectrum of engineering, procurement, steel plate
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LNG Import Terminals

CB&I has a long heritage within the
LNG industry (50+ years)
CB&I designed the LNG tanks for the
export and receiving ends of the first
shipment of LNG from Lake Charles,
LA to Canvey Island, UK in 1958
CB&I have in-house capabilities to
execute the terminals full EPC scope
from ship unloading to storage and
vaporization / sendout
Since 1971 CB&I have designed and
built
9 Grassroots Terminals
8 Terminal Expansions
14 constructed since 2000
9
LNG Terminal Block Flow Diagram
Project Profile Golden Pass Terminal

Client:
ExxonMobil, Qatar
Petroleum and Conoco
Phillips
Location:
Sabine Pass, Texas
Schedule: Phase 1 completed in 2010

Phase 2 completes 2011
Project
Value:
EPC
Scope of
Work:
$1.1 Billion
Ship Unloading System
5 x 155,000 m3 Full
Containment Tanks
2 BSCFD Regas and
Sendout
Project Profile South Hook Terminal

Client:
ExxonMobil and Qatar

Petroleum
Location:
Milford Haven, Wales
Schedule:
Phase 1 completed 2009

Phase 2 completed 2010
$1.3 Billion
Project Value:
EPC
Scope of
Work:
Ship Unloading System;

160,000 DWT Jetty
5 x 155,000 m3 Full
Containment Tanks
2 BSCFD Regas and
Sendout
Project Profile Grain Terminal

Client:
Grain LNG Ltd.
Location:
Kent, U.K.
Schedule:
Ph II 2008 & Ph III 2010
Project
Value:
$ 1.0 Billion
EPC
Scope of
Work:
Increase Regas and

Sendout Capacity to 1.7
BSCFD
3 x 190,000 m3 Full
Containment Tanks
BOG Compression &
Recondenser
New Control Building
Integration Into &
Expansion of Facilities
9
Project Profile Fujian Terminal
Client:
CNOOC / Fujian LNG Co.

Ltd.
Location:
Fujian Province, PRC
Schedule:
Completed 2008
Project
Value:
$250 MM
EPC
Scope of
Work:
Ship Unloading System

2 x 160,000 m3 Full
Containment Tanks
350 MMSCFD
Regasification and
Sendout
10
Project Profile GNL Quintero Terminal
EPC Scope of
Work:
Client:
GNL Quintero S.A.
Location:
Quintero Bay, Chile
Schedule:
Completed 2010
Project Value:
$775 MM
New marine jetty with complete ship

unloading facilities
2 x 160,000 m3 Full Containment
tanks
One smaller storage tank (10,000 m3)
400 MMSCFD Regas and Sendout
Project Profile AES LNG Terminal
EPC Scope
of Work:
Client:
AES Corporation
Location:
Dominican Republic
Schedule:
Completed 2003
Project Value:
$ 70 mil
Jetty capable of offloading ships from 35,000 m3

to 145,000 m3
Single containment tank (160,000 m3)
Provides fuel gas for a 300 MW power station
Thermal integration with power plant for improved
efficiency
Project Profile EcoElectrica Terminal
EPC Scope
of Work:
Client:
EcoElectrica
Location:
Puerto Rico
Schedule:
Completed 2000
Project Value:
$ 150 mil
Jetty capable of offloading ships from 35,000 m3

to 145,000 m3
Double containment tank (160,000 m3)
Provides fuel gas for a 500 MW power station
Thermal integration with power plant for improved
efficiency
The LNG Value Chain

LNG Liquefaction
LNG Regasification
LNG Value Chain : Typical Costs & Returns
5 Mt
$400 per
tonne capacity
5 Mt single train
$750 per
tonne capacity
5 ships
$220M
per ship
US$2.0bn
US$3.75bn
US$1.1bn
(27%)
(50%)
(15%)
$90M per
1 BCM/yr capacity
US$0.6bn US$7.45 bn
(8%)
(100%)
13.7%
Source : Wood Mackenzie, Deutsche Bank

Import Terminal EPC Cost Trend

European Regas Costs* Under Pressure
EPC Unit Costs (US$ million/(Bcm/y)
Fos Cavaou
Projects completing
2008 to 2012 were
awarded in 2004 to
2008
100
South Hook
LNG
80
Dragon LNG
60
Sines
40
Bahia di
Bizkaia
Grain 1 Reganosa
Grain 3
Expansion
Grain 2
Expansion
Numbers are not

absolutes due to scope
of work differences; they
reflect a trend only
South Hook
LNG Phase II
Zeebrugge
Expansion
20
02000
2002
2004
2006
2008
Start-up Date
* Data from company press releases

** Estimated Cost
16
GATE LNG
Terminal**
CB&I
2010
2012
Source: Poten & Partners
Import Terminal Schedule & Cost Drivers

LNG Tank Types
Single Containment
Double Containment
Full containment with steel roof
Full Containment with concrete roof
Single containment tanks require a bunded area around them to
meet code requirements which requires more plot space
The over schedule for the terminal is normally controlled by the
tank schedule duration.
One 160,000 m3 FC tank takes around 36 months to engineer

and construct
Schedule varies by 4 to 6 months between single and double /
full containment tank types
Costs vary from a factor of 1.0 for single containment to 1.7 for
double or full containment tanks
Single Containment LNG Tank

Carbon Steel Outer
Tank Roof, Shell
& Bottom
Sidewall/Deck
Insulation
System
Concrete Foundation
Suspended Insulation Deck
9% Ni Inner Tank
Load Bearing Bottom

Insulation System
Foundation Heaters
Double Containment LNG Tank

Carbon Steel Outer
Tank Roof, Shell
& Bottom
Suspended Deck & Insulation
Cover if
required
Loose fill perlite
Insulation
System
Pre-stressed
concrete
outer tank
wall
9% Ni Outer
Bottom & Liner
9% Ni Inner Tank
Outer shell
not able to
contain
liquid
Load Bearing Bottom

Insulation System
Foundation Heaters
Concrete Foundation
Full Containment (Steel Roof) LNG Tank

Carbon Steel
Dome Roof
9% Ni Inner Tank
Sidewall/Deck
Insulation
System
Vapor Barrier
Prestressed
Concrete
Wall
9% Ni Bottom
& Corner Protection
Concrete Foundation
Load Bearing Bottom

Insulation System
Foundation Heaters
Full Containment (Concrete Roof) LNG Tank

Concrete & Steel
Dome Roof
9% Ni Inner Tank
Sidewall/Deck
Insulation
System
Vapor Barrier
Prestressed
Concrete
Wall
9% Ni Bottom
& Corner Protection
Concrete Foundation
Load Bearing Bottom

Insulation System
Foundation Heaters
Import Terminal Cost Drivers

LNG Jetty Type
Berth type
Trestle type
Most LNG ships require a minimum depth of 15 m

Jetty type is dictated by access to deep water vs dredging costs
Trestle type jetties will normally control overall terminal schedule
if the trestle length exceeds 1 km
CB&I
August 2009
23

LNG Import Terminal Cost and Schedule Basics

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LNG Import Terminal

Cost and Schedule Basics

Engineering Solutions . . . Delivering Results

Operating Structure Business Units

CB&I Steel Plate

Supply and Installation:

Engineering Solutions . . . Delivering Results

Gas Processing / LNG

Engineering Solutions . . . Delivering Results

LNG Import Terminals

Engineering Solutions . . . Delivering Results

LNG Terminal Block Flow Diagram

Engineering Solutions . . . Delivering Results

Project Profile Golden Pass Terminal

Sabine Pass, Texas

Schedule: Phase 1 completed in 2010

Engineering Solutions . . . Delivering Results

Project Profile South Hook Terminal

ExxonMobil and Qatar

Milford Haven, Wales

Phase 1 completed 2009

Ship Unloading System;

Project Profile Grain Terminal

Grain LNG Ltd.

Ph II 2008 & Ph III 2010

Increase Regas and

Engineering Solutions . . . Delivering Results

Project Profile Fujian Terminal

CNOOC / Fujian LNG Co.

Fujian Province, PRC

Ship Unloading System

Engineering Solutions . . . Delivering Results

Project Profile GNL Quintero Terminal

GNL Quintero S.A.

Quintero Bay, Chile

New marine jetty with complete ship

Project Profile AES LNG Terminal

Jetty capable of offloading ships from 35,000 m3

Project Profile EcoElectrica Terminal

Jetty capable of offloading ships from 35,000 m3

The LNG Value Chain

Engineering Solutions . . . Delivering Results

LNG Value Chain : Typical Costs & Returns

Source : Wood Mackenzie, Deutsche Bank

Import Terminal EPC Cost Trend

EPC Unit Costs (US$ million/(Bcm/y)

Numbers are not

* Data from company press releases

Source: Poten & Partners

Engineering Solutions . . . Delivering Results

Import Terminal Schedule & Cost Drivers

One 160,000 m3 FC tank takes around 36 months to engineer

Single Containment LNG Tank

Suspended Insulation Deck

Load Bearing Bottom

Engineering Solutions . . . Delivering Results

Double Containment LNG Tank

Suspended Deck & Insulation

Load Bearing Bottom

Engineering Solutions . . . Delivering Results

Full Containment (Steel Roof) LNG Tank

Load Bearing Bottom

Engineering Solutions . . . Delivering Results

Full Containment (Concrete Roof) LNG Tank