Purvin & Gertz International LPG Seminar

Houston, March 15 – 16, 2006

Emergence of Nigerian LNG as a major

NGL exporter in the Atlantic Basin

by
Dr. Aydin Esener
Operations Planning & Scheduling
Nigeria LNG Limited.
Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 1
 Emergence of Nigerian LNG as a major NGL
exporter in the Atlantic Basin

• Introduction to Nigeria LNG

• Growth of the business
• NGLs; Propane, Butane and Condensate
• NGLs Future & Strategies
• Conclusion / Going Forward...

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 2
NLNG Mission :
To produce and deliver LNG and NGLs safely, reliably and profitably
growing our Company and its people to their full potential, and being a
trusted partner with all our stakeholders in the sustainable development
of Nigeria’s gas industry and of NLNG’s host communities

Shell
NNPC Gas TOTAL

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 3
 Nigeria LNG – March 2006

 5 LNG Trains in operation:

• Capacity: 18 mtpa of LNG
• 820 LNG cargoes since Oct.’99;
262 LNG planned in 2006
• NGL 2006 Plan : 0.7 mtpa LPG, 0.6 mtpa Condensate
 Train 6 (+ 4 MPTA): Construction 57%; Start-up in Q3 2007
 T7+ (+ 16 MTPA) Project in FEED; FID end 2006
Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 4
 The Future - NLNG in 2007/8 after Train-6
• US$ 12 billion Investment
• 6 LNG Trains
• 22 Mtpa of LNG capacity
• 3.5 Mtpa of NGLs capacity
• 400 LNG Loadings/year
• 11 Buyers with 16 SPAs
• 24 Dedicated LNG Ships
Nigeria LNG Limited
• 4 LNG Tanks: 340,000 m3
• 4 LPG Tanks: 260,000 m3
• 3 Cond Tanks: 120,000 m3
• Diversified Gas Supply
Transmission Systems
• T7+ Under Construction
Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 5
Gas Supply Mbede

(6 Train) Obiafu
NNPC-SPDC-EPNL-NAOC 1,940 MMSCFD
NNPC-EPNL 690 MMSCFD
OBRIKOM
NNPC-NAOC-Phillips 850 MMSCFD
Idu OBITE

Ibewa
Ubeta NIGERIA
dry land
GTS-4 GTS-1
seasonal marshland
RUMUJI

PORT-HARCOURT
Niger GTS-2
River Bonny NAG
mangrove
SOKU BONNY
swamp
Nembe
Creek LNG
GTS-3 Ekulama Cawthorne Plant Site
GTS-5

LNG
To Europe, Turkey & USA
Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 6
 NLNG - LNG Tanker Fleet (2007+)
• 24 Long Term chartered vessels
• Bonny Gas Transport - 100% NLNG subsidiary - owns and operates 12
• 14 new-builds secured on long-term charter from 3rd Party Fleet
Managers
• Average fleet capacity/vessel size – 138,000 m3
• Fleet operated on an integrated basis, each vessel calling at any
terminal.
• No dedication of vessel to any SPA.
Year No. of Total
Ships Cap.(000,m3)

99 4 510
00 4 510
01 6 760
02 8 1,050
03 9 1,175
04 10 1,315
05 15 2,030
06 18 2,175
07 24 3,070
Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide : 7
 Nigeria LNG/NGL Marketse
Proximity to market - a key strategic Advantage
North America Europe
NW Europe
France
Iberia Italy
NE US Turkey
SE US
GOM
Mexico
NIGERIA

NLNG optimally situated to participate in two of

the fastest growing gas markets
Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide : 8
 LNG production forecast for 2006-2010+
Past Performance Firm Plan
45
40
LNG Production (mtpa)

T8
35 T7
30 T6
25 T5
20 T4
15 T3
10 T2
5 T1
0

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide : 9
 NGLs : Propane, Butane, Condensate

• Process scheme

• Typical Properties

• Volumes & Growth

• Marketing Strategy – present and future

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 10
Natural Gas = 100% w

Slug Catcher
Separator Simplified Process Flow Scheme

Amine Mol Sieve Mercury

Treatment Driers Trap

Scrub Liquefaction LNG = 82%

Column

Propane=1%
Fractionation
Butane =2%

Energy/Loss =11%

Condensate =4%

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 11
 COMMERCIAL PROPANE PRODUCED (TYPICAL)
Analyses Units Specs Value
Butanes v/v% =< 4 0.22
C5+ v/v% <= 0.1 0.0
Vapor Pressure Calculated psig <= 200 173.00
Corrosion score 1a
C2 v/v% <= 2 0.01
C3 v/v% >= 95 99.77 High purity
C3= v/v% 0.00
i-C4 v/v% 0.21
n-C4 v/v% 0.01 Contaminant
cyclo-C5 v/v% 0.00
&
i-C5 v/v% 0.00
n-C5 v/v% 0.03 Olefin Free
neo-C5 v/v% 0
i-C6 v/v% 0 Product
n-C6 v/v% 0
Rel Density @ 15.4 oC 0.508
Total Olefins v/v% 0
Total Sulphur mg/Kg <= 30 1.09
Water Content (free) mg/Kg <= 10 0
GHV MJ/kg 50.36
Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 12
COMMERCIAL BUTANE PRODUCED (TYPICAL)
Analyses Units Specs Value
Butanes v/v% >= 95 98.95
C5+ v/v% <= 1 0.47
Vapor Pressure Calculated psig <= 70 44.79
Corrosion score 1a High purity
C2 v/v% 0.01
C3 v/v% <= 2 0.56
C3= v/v% 0 Contaminant
i-C4 v/v% 34.70
n-C4 v/v% 64.25 &
cyclo-C5 v/v% 0.17
Olefin Free
i-C5 v/v% 0.27
n-C5 v/v% 0.03 Product
neo-C5 v/v% 0
i-C6 v/v% 0
n-C6 v/v% 0

Rel Density @ 15.4 oC 0.577

Total Olefins v/v% 0
Total Sulphur mg/Kg <= 30 1.1
Water Content (free) mg/Kg <= 10 0
GHV MJ/kg 49.49

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 13
CONDENSATE PNA ANALYSES
Fraction Degrees Centigrate Typical Condensate PNA Analyses
PNA (mass%) C5-65 65-100 100-122 122+
% mass 51.25 31.74 7.98 6.22 ASTM D 4051 Density 15/4 = 0.682
Paraffins
C4 1.0
C5 81.0 0.1
C6 13.0 30.5 0.1 Mostly C5-C7 Paraffins
C7 15.5 11.7 0.2
C8 0.2 16.1 16.1
C9 0.3 15.2 C6-C7 Naphthenes
C10 0.1 5.4
C11 1.5
Naphthenes
C5 3.4 0.5
Aromatics poor
C6 1.2 28.4 0.1
C7 19.4 35.1 0.2
C8 0.7 25.3 24.5 Contaminant Free,
C9 0.8 17.1
C10 4.2 Stabilised Product
C11 0.5
Aromatics
*
C6
C7
0.4 3.1
1.5 10.3 0.3
Good Ethylene Crack.Feedstock
C8 0.4
C9 11.1 &
C10 3.0 Gasoline Blending Stock
Poly-Naphthenes 0.1
n-paraffins 40.3 21.8 12.5
Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 14
NGL: Propane & Butane Production 1999 – 2010+
2,000
1,800 1,745
Butane (Kt) 1,616
1,600
Production (KTons)

Propane (Kt)
1,400
1,251
1,159
1,200
1,034 1,051 1,069
1,000
838
800 711 723 735
Actual
576
600
444
400 304
205 217
200 118 105 136
00 00 00 00 65
0

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 15
NGL: Condensate - Production 1999 – 2010+

2,000 1,876
1,800 Condensate (Kt) 1,738
Production (KTons)

1,558
1,600 1,508 1,533

1,400 1,288

1,200
1,000
Actual
800
565
600 461
404 433
400
238 251
196
200
5
0

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 16
 2006+ NGLs Marketing Strategy (6 - Trains)

• NLNG is now a major NGLs exporter with

• 1.4 MPTA LPG in 2007 = 4 % of world seaborne LPG trade

= 20% of USGC seaborne imports

1.3 MTPA of Condensate in 2007

• High Quality and High Volumes

• A reputation as a reliable and trustworthy supplier of

ex-ship LNG cargoes since 1999 (820 cargoes to date)

• Logistics advantage for export to N. America & NWE

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide: 17
 2006+ NGLs Marketing Strategy (6 - Trains)

• Primary Objective :

 Secure Reliable and Profitable alliances with Key

Customers in NGL (mainly Atlantic) Markets

• Using a portfolio of dedicated and fob vessels

 Global marketing approach (long term NGL contracts + FOB)

 75,000+ m3 refrigerated Propane/Butane cargoes
 Export & Domestic markets
 35,000+ ton Condensate cargoes

• Optimise the Gas Supply to product disposal ex ship through

strategic Alliances with trustworthy customers and NGL
market players.

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide : 18
 Conclusions / Going Forward …..

• NLNG is a major NGL supplier

- with further significant growth in the next 5 years

• Supplying High Quality and High Volumes

• With a reputation for reliability of supply in LNG’s

• Seeking a portfolio of reliable and profitable disposal

routes with a combination of
- Deliveries ex Ship for a selected Group of Alliance partners.
- FOB sales.

• Based on an optimised Gas Supply to Customer strategy.

Nigeria LNG Limited Date: 16 March 2006 Purvin & Gertz International LPG Seminar Slide : 19