LNG Experience

Owner & Investor Project Management

Sample LNG Personnel

• Mike Britton – ex Conoco Director of Worldwide

Projects incl. PM for Freeport LNG, LNG Qatar ,

Alaska LNG, COP Curtis Island

• Mike Willams – Lead rotating Machinery Engr at

Gladstone LNG and ET Lake Charles LNG

• Dave Luetchford,P.E. – ex Exxon – OE on ET –Shell

LCLNG, PM on various Midstream Gas

Developments on Gulf Coast USA, ALNG2 Russia

with BOMESC China, Exxon Refining

• Jim Scott – Shell Global Practice Leader in Cost

Estimating and Benchmarking for Shell Intl.

• Bertrand Bernard – 35 Years with Shell including

PM for Sakhalin LNG 2, Russia, Qatar and Nigeria

DRL has 35 core team personnel, including eg:

DRL currently playing lead roles in several LNG Owner teams

at Shell Lake Charles and Freeport LNG

Project Management (Operator / Investor)

• Most mega projects fail to meet FID Cost & Schedule

• Contracting Strategies are not meeting the challenges

• Regulatory Permitting Activities are often under-estimated

• Tighter labor market coming

• Even for Co-Investor, governance entails similar liabilities

and responsibilities and therefore requires a spectrum of

capabilities similar to an operated business.

Owner Management – Where we can Help

– Feasibility and Approval Process

– Pre FID Evaluations• Contractor Selection Evaluations

• Scope Validation

• Execution Strategy– Modularization vs. Stick Build

• Cost Validation

• Schedule Validation

• Team size, structure and content (staffing – both

competency assessment and sourcing)

• Risk Identification

– Execution• Progress Monitoring and Control

• Risk Mitigation

OWNER PROJECT

MANAGEMENT SUPPORT

❖ PROJECT MANAGEMENT

❖ PROJECT DUE DILIGENCE

❖ COST REDUCTION METHODS

❖ EXECUTION PLANNING

❖ REGULATORY PLANNING

❖ CONTRACTING STRATEGY

❖ TENDER PACKAGE DEVELOPMENT

❖ FID ESTIMATE & BENCHMARKING

❖ SCHEDULE & BENCHAMARKING

❖ COST CONTROL & FORECASTING

❖ DEVELOPMENT OF WBS WORKPACKS

❖ SAFETY & RISK MANAGEMENT PLANS

❖ FACILITIES COMPLETION METHODS

❖ MOC PLAN

❖ COMMISSIONING & S/U PLANNING

DRL CAPABILITIES

WE HAVE MANAGED 110 JOBS IN USA

Examples of Review Activities

LNG PLANT Cost and Main Contractor

LNG PLANT Cost per tpa

LNG PLANT Cost per tpa

LNG PLANT Cost per tpa

LNG PLANT Cost per tpa

LNG PLANT Cost Drivers

• Major Cost Drivers include:

– Scope is the Biggest Driver

• Capacity / Functionality / Process

Selection / Layout

– Location

• Labor Availability / Weather

– Execution Strategy

– Legislation / Regulatory

– Market Conditions

– Performance

Minimum Process LNG Plant

Maximum Process LNG Plant

Some Differences :-

• Plant Location

• Cost of Labour

• Feed Gas Composition

• Product Specification

• a feed gas handling

and treating section

• a liquefaction section

• a refrigerant section

• a fractionation section

• an LNG storage section

• a marine and LNG

loading section

• a utility and offsite

section

LNG Plants : All Plants are Not Alike

LNG PLANT Cost Differences

Sabine Pass LNG Project

Comparison to Gorgon LNG

Sabine Pass LNG Gorgon LNG

LNG Plant Execution Duration vs. Capacity

Petronas PLNG 1 vs Prelude COSTS

LNG PLANT DATA

Onshore Plant and

Gas Transmission Pipeline

Cost Benchmarking

Onshore Plant Project Database

Onshore

Project Database

125 Plants

14 North American

Gas Transmission

Pipelines

Onshore Plant Cost Benchmarking

Onshore Plant Cost

Benchmarking

Oil Refineries, Gas

Processing Plants, LNG

Plants, Ethane

Crackers, MEG/EO

Plants

Onshore Plant Cost Benchmarking

Onshore Plant Cost

Benchmarking

Polyethylene,

Ammonia, UREA,

Methanol, Gas to

Liquids and Gas Fired

Power Stations

Onshore Gas Transmission Line Cost Benchmarking

“Owner Advisor / Engineer”