technical update october 6, 2011. gas transport 2 details provided for transportation and separation...

Technical UpdateOctober 6, 2011

Gas Transport 2

• Details Provided for Transportation and Separation of Mixtures

• Illustrates Several Concepts for Separate Transfer on the same Marine Vessel

• Identifies Economic Value of Separation of Existing Cyrogenic Liquid Mixtures

• Great Synergy Between LNG and GTE

Gas Transport of Ethylene Factors

• North America Gas Prices are Low

• US Cost to Manufacture Ethylene very low due to historically low ethane prices

• Many LNG plants are operating at capacity

• Older, Smaller LNG Ships available

• Ethylene Prices are Increasing outside of USA

• Naphtha Ethylene Plants are old and naphtha cost remains high – shutting down in

US and Europe

• Ethane for ethane crackers not available in Europe and Asia keeping ethylene prices

high. Europe and Asia account for 53% of global ethylene production.

0

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1 000

1 100

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0 20 40 60 80 100 120 140 160Ethylene Capacity (million tons per year)

US$

per

ton

Ethy

lene

Middle E.Ethane

ME E/P and Mixed

ChinaMTO

AsiaEthane

North AmericaEthane and E/P

Asia Liquid

EuropeNaphtha

South KoreaNaphtha

JapanNaphtha

IndiaE/P

IndiaNaphtha

1st Quartile

2nd Quartile

3rd Quartile

4th Quartile

Old and Sub-Scale

Ethylene Cost to Produce vs Source and Process

Opportunities

• Several locations in Africa and Middle East where ethylene production and

LNG production are nearby

• Several locations in Asia, Western Europe and USA where LNG is received

and ethylene is made and converted

• The cheapest ethylene is made in the Middle East and Most expensive is

made in Europe