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Design & Development of Ocean CNG Transport Systems

Natural Gas Technologies IIPhoenix, Arizona11 February 2004

Mark Richards Charles WhiteGas Technology Institute EnerSea Transport, LLC

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Overview

> Why marine transport of CNG?> Marine CNG transport benefits> EnerSea’s VOTRANS™ system> Multi-client program validation testing

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EnerSea Transport LLC

> Based in Houston, Texas> Privately owned> Gas transport and storage service provider

using– Breakthrough technologies (VOTRANS™)– Experienced team of industry experts– World class partners and business

relationships

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Why Marine CNG Transport?

> Increased natural gas demand combined with supply constraints have led to growing interest in new sources

> Marine CNG transport can address sources beyond the reach of pipelines and below minimum thresholds for LNG/GTL deployment– Production rates between 50 and 700 MMscf

per day– Distances between 150 and 3000 miles

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Global ApplicationsThe World Needs CNG

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Marine CNG Benefits

> General benefits– Project capacity

scalability> Upward and

downward– Project risk mitigation

> Investment can be salvaged

– LNG complement> Production takeoff

during reservoir assessment

– Deepwater capability

> EnerSea VOTRANS™ benefits– Isothermal, isobaric

gas handling accommodates a wide range of gas compositions

– Minimal gas processing allows direct loading from offshore production facilities

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EnerSea Transport Scheme

> Loading facilities– Proven systems– Dual buoys for continuous

production– Vessels designed for submerged

turret loading systems

> VOTRANS™ vessels– Carrying capacity

(up to 1 Bcf)– Approval in Principle (ABS)– Capital and operating costs

defined– International vessel design

> Delivery terminals - OFFSHORE– Cost effective, safe and secure

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Gas Conditioning and Containment> Gas is loaded and stored at -20°F (or colder)> Increases storage density and reduces material

required for containment

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0 500 1000 1500 2000 2500 3000Pressure, psia

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- 20o F

Hi-pressure,Ambient Storage

Rich Gas

Lean Gas

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0 500 1000 1500 2000 2500 3000Pressure, psia

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Hi-pressure,Ambient StorageHi-pressure,Ambient Storage

Rich GasRich Gas

Lean GasLean Gas

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Gas Handling System

> Liquid displacement process for loading and unloading– Minimizes heat of compression impact during

loading– Minimizes Joule-Thompson effects during

unloading– Greatly reduces residual gas volume or “heel”– Provides greater control of unloading rate– Provides a more cost effective containment

evacuation> Pump vs. variable suction-head scavenging

compressors

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Constructible DesignGeneral Arrangement

Gas Volume: 700 – 800 mmscf

Length, LOA: 306.0 mBeam, B: 50.0 m

Full load draft 10.1 m

Lightship draft 7.5 m

Ship Speed 18 knots

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CNG vs. LNGComparative Risk Assessment

> CNG and LNG have the same order of risk overall

> CNG is found to have a slight risk management advantage, since all risks are offshore

LNG CNG

Liquefaction Compression and refrigeration

Loading

Port departure Buoy departure

Transit

Port arrival Buoy arrival

Discharging

Regasification Decompression

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Pressure Vessel Design Robust and Safe

Reliabilitypf

ABSTarget

EnerSeaTank

Fatigue LS 10-7 7x10-9

Ultimate LS 10-8 4x10-14

> DNV Rules for CNG Carriers is 10-5 for an annual target safety value

> Design will meet ASME Section VIII Div 3 code

> USCG indicates willingness to accept Div 3 code

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VOTRANS™ Technology What is different?

> Patented gas storage optimization– Optimize pressures & temperatures– 1300 - 1800 psi (associated or lean gas) compared to

3000-3600 psi– Lower weight than competing high pressure steel or

steel/fiberglass composite technology– Vessel can be serviced at dry-dock during life

> Low cost, widely available materials– High strength carbon steel - no exotic materials– Proven fabrication and construction techniques

> Proprietary gas management technology– Isobaric loading minimizes heat of compression effects– Isothermal unloading minimizes JT cooling in storage– Supports rich/associated gas– Unload almost 99% of cargo vs. 90-94%

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NIPPON STEEL

VOTRANS™ Technology ValidationMulti-client Programs

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Validation TestingFunctional & Material

> Functional testing– Phase 1: complete December 2003

> Test program defined> Test set-up designed

– Phase 2: Summer 2004> Construct test bed and perform tests

> Materials testing– Phase 1: complete December 2003

> Test program defined> Plate and pipe production> AE systems defined> Test facility selection

– Phase 2: Summer 2004> Construct full-scale pipe tanks

and test

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Creating an Industry CNG Centre of Excellence

> World’s first open access, large-scale CNG test facility

> Co-funded facility (50%)– C$8.2 million funding– Not-for-profit corporation– Five year program

> Process and marine systems

> Regulatory forum to coordinate guideline and rule development El Paso Energy Bridge Test Facility

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Marine CNG AchievementsBuilding Momentum

> CNG transport represents an important new gas offtake solution (lean and associated gas)

> Technology advancements have greatly increased CNG capabilities & economics

> Applications exist forCNG to contribute to the US gas supply

> VOTRANS™ is ready for project application

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For Additional Information

> Charles N. WhiteVice President, TechnologyEnerSea Transport LLC3555 Timmons, Suite 650Houston, TX 77027 USAcwhite@EnerSeaTransport.com

> Mark E. RichardsManager, Advanced Energy SystemsGas Technology Institute1700 S. Mt. Prospect Rd.Des Plaines, IL 60018 USAmark.richards@gastechnology.org