BP s Big Green Train: Benchmarking Next Generation LNG Plant Designs

1. BP�s Big Green Train: Benchmarking Next Generation LNG Plant Designs LNG 14 � Doha March, 2004 I would like to thank the conference sponsors and organizers of LNG14 for the opportunity to present this topic. � I would also like to thank the co-authors, Charles Durr and Keenis Davis with KBR who are with us today, and Jeff Sawchuk with BP who was unable to attend the conference. � I would also like to thank General Electric and Siemens for their support, and give a special thanks to the LNG process Licensors, Axens, Air Products, Linde and Black & Veatch for their support and contributions to this Benchmarking effort. � The results of the BP�s Big Green Train Project undertaken in 2002 & 2003 with KBR as our engineering contractor have reinforced BP belief and provided a high level of confidence that large capacity, energy efficient plants will underpin an evolution in LNG plant designs where new a industry standard will be set. This evolution has begun, as evidenced by other major LNG player pursuing large LNG train sizes, and will continue to advance as a result of the increasing demand for natural gas in the form of LNG, continued market pressures to deliver lower cost LNG, and the need to deliver higher value to the project sponsors and host governments. � The Big Green Train project represented BP�s desire to achieve not only the �Next Generation� for LNG liquefaction plant designs for our future projects, but to set the �Next Benchmark� for the industry. � The Big Green Train plant designs were based on LIQUEFINTM liquefaction technology that was developed by IFP, Institut Francais du Petrole. However, a key deliverable of the Big Green Train Project was to conduct a �Benchmarking� program to demonstrate that other available liquefaction technologies could deliver similar metrics for a Big, Green LNG plant design. � The results showed that although the LNG process technology did have some influence on the cost of the LNG plant, �True Success in Design� is really achieved by the owner/contractor project team working in conjunction with the process licensor toward common goals. � I am pleased to share some of the main results of the Benchmarking.  I would like to thank the conference sponsors and organizers of LNG14 for the opportunity to present this topic. � I would also like to thank the co-authors, Charles Durr and Keenis Davis with KBR who are with us today, and Jeff Sawchuk with BP who was unable to attend the conference. � I would also like to thank General Electric and Siemens for their support, and give a special thanks to the LNG process Licensors, Axens, Air Products, Linde and Black & Veatch for their support and contributions to this Benchmarking effort. � The results of the BP�s Big Green Train Project undertaken in 2002 & 2003 with KBR as our engineering contractor have reinforced BP belief and provided a high level of confidence that large capacity, energy efficient plants will underpin an evolution in LNG plant designs where new a industry standard will be set. This evolution has begun, as evidenced by other major LNG player pursuing large LNG train sizes, and will continue to advance as a result of the increasing demand for natural gas in the form of LNG, continued market pressures to deliver lower cost LNG, and the need to deliver higher value to the project sponsors and host governments. � The Big Green Train project represented BP�s desire to achieve not only the �Next Generation� for LNG liquefaction plant designs for our future projects, but to set the �Next Benchmark� for the industry. � The Big Green Train plant designs were based on LIQUEFINTM liquefaction technology that was developed by IFP, Institut Francais du Petrole. However, a key deliverable of the Big Green Train Project was to conduct a �Benchmarking� program to demonstrate that other available liquefaction technologies could deliver similar metrics for a Big, Green LNG plant design. � The results showed that although the LNG process technology did have some influence on the cost of the LNG plant, �True Success in Design� is really achieved by the owner/contractor project team working in conjunction with the process licensor toward common goals. � I am pleased to share some of the main results of the Benchmarking.

2. project objectives Develop Next Generation LNG Plant Options that are Big, Green and Low Cost, and � Produce 5+ MTPA of LNG Reduce the EPC cost per annual tonne of LNG produced by 25% (as compared to ALNG Train #1) Reduce CO2 emissions per ton of LNG produced by 50% (as compared to ALNG Train #1)