OTC 19785

Offshore Value Chain Optimization

Edward B. Scott and Mark K. Lane, Excelerate Energy, LP

Copyright 2009, Offshore Technology Conference

This paper was prepared for presentation at the 2009 Offshore Technology Conference held in Houston, Texas, USA, 4–7 May 2009.

This paper was selected for presentation by an OTC program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been
reviewed by the Offshore Technology Conference and are subject to correction by the author(s). The material does not necessarily reflect any position of the Offshore Technology Conference, its
officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Offshore Technology Conference is prohibited. Permission to
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Abstract

The paper addresses the major points in the offshore value chain and describes a market maturing as it gains
more global acceptance, allowing segments of the industry to transition from typical land-based upstream and
downstream services with conventional LNG carriers providing point to point transportation solutions to non-
typical offshore based systems providing added value to operational and commercial considerations through
increased flexibility, reduced costs and a major shift from the traditional concept of fixed land-based assets. As
the number of offshore and dockside regasification facilities continue to grow, the ability to cost effectively open
new seasonal and year-round markets utilizing regasification capable LNG vessels as floating terminals in
conjunction with ship to ship transfer capabilities to maximize the utilization of these assets, continues to
demonstrate a global appeal. Applying the valuable lessons learned in taking LNG transfer and regasification
operations offshore will allow offshore LNG participants to “complete’ the value chain by developing floating
liquefaction solutions to allow the cost effective development of associated and “stranded” gas reserves that, to
date, have not been considered to be worthy conventional for development.

The offshore value chain as discussed herein, consists of a floating natural gas processing, liquefaction, and
storage system, a suitably reliable offloading system, and transportation to offshore, dockside, or conventional
regasification facilities as market and other considerations dictate, as is based on nearly 5 years of operational
expertise in the construction and operation of LNG regasification vessels, ship to ship transfer systems, and the
development of numerous offshore and onshore facilities to accommodate these vessels and to open new and
under-serviced markets

Abbreviations

BOG Boil-Off Gas

BV Bureau Veritas (France)

ESD Emergency Shut Down

FLNG Floating Liquefaction of Natural Gas

IGC IMO Gas Code

LNGC Liquid Natural Gas Carrier

LNGRV Liquid Natural Gas Regasification Vessel

2 OTC 19875

SIGTTO Society of International Gas Tanker and Terminal Operators

STS Ship To Ship transfer

USCG United States Coast Guard

Preamble

In February of 2005, Excelerate Energy inaugurated the Gulf Gateway Deepwater Port, the world’s first offshore
LNG receiving terminal utilizing the EBRV Excelsior. Since that time, that intial success has been followed by the
worlds first dockside regasification terminal (Teesside GasPort in the United Kingdom), the first terminal permitted
and constructed on the East Coast of the United States in more that 25 years (Northeast Gateway in
Massachusetts Bay), the first LNG receiving terminal in South America (Bahia Blanca GasPort in Argentina), and
in June 2009 will open a dockside facility at Mina Al-Ahmadi in Kuwait, designed to facilitate the seasonal
importation of LNG via conventional LNG carriers up to Q-Flex size in a tandem docking configuration at new
quayside facilities fitted with fixed articulated loading arms and cryogenic transfer piping. In addition, Excelerate,
in conjunction with Exmar and Skaugen have developed a Ship to Ship Transfer system (STS) to maximize the
“at port” efficiency of its regasification assets and utilize more economical conventional vessels for long haul
transport of cargos.

This paper describes the continuous development of the offshore LNG systems and the path forward in utilizing
this experience in the development of complimentary floating liquefaction solutions.

LNG Regasification Vessel

Excelerate Energy’s LNG Regasification Vessel, hereinafter referred to as an LNGRV, has a relatively simple
arrangement for a shipboard regasification and high pressure gas delivery system incorporated in a purpose build
fashion with proven LNG vessel design with a robust LNG cargo containment system.
OTC 19875 3

The LNGRV EXCELSIOR, a first generation regasification vessel, sailing out of the builders yard in Okpo, South Korea.

The LNG containment capacity of the vessel ranges from the first generation vessels with a capacity of 138,000
cubic meters (equivalent to approximately 2.9 billion cubic feet of gaseous natural gas) to the second generation
150,900 cubic meter vessel (approximately 3.2 billion cubic feet of natural gas).

The LNGRV regasification system is powered by an enhanced marine steam and electric generation plant. The
regasification system can operate in an open-loop mode, a closed-loop mode, or in a combined mode which uses
features of both. In the open-loop mode, LNG is pumped from the LNGRV containment system into a suction
drum using submerged feed pumps located within the cargo containment tanks. The suction drum then feeds
LNG into the pump pots of submerged high pressure LNG pumps which ramp-up the pressure of the LNG. The
high pressure LNG pumps feed the LNG into the tube-side of shell-and-tube vaporizers. Warm sea water is
circulated from the sea adjacent to the LNGRV, across the shell-side of the vaporizer, providing the heat
necessary to vaporize the LNG and then back overboard into the sea again.

This process is similar to the closed-loop regasification process except, rather than taking warm sea water from
overboard and then, after passing across the vaporizer, returning it to the sea, the heating water for the
regasification process is cycled across steam heaters within the LNGRV. The steam necessary for heating the
water in the closed loop mode is that which is produced onboard by the LNGRV’s marine boiler system.

The combined mode, as can be imagined by the name, is a process where the sea water heating medium is
taken from overboard, partially heated on board as necessary for the regasification process and then returned to
the sea.

The regasification or send-out capacity of the first and second generation LNGRV will depend entirely on the
amount of heat the vessel can produce or take from the surrounding water and the rating of the equipment. The
first generation LNGRV can produce up to 690 mmscf/d in the open-loop mode and up to 450 mmscf/d in the
closed loop mode whereas the larger volume second generation LNGRV can achieve higher rates in both modes
of operation due to the optimization of the steam and electrical power generation systems.
4 OTC 19875

Send out Send out Send out Send out Send out Send out Send out
pressure 5°C 10°C 15°C 5°C 10°C 15°C
(bar g) no DG no DG no DG with DG with DG with DG
100 400 385 365 450 435 415
75 390 375 355 440 425 405
45 380 365 345 430 415 395

A model of the regasification send-out capability of the first generation LNGRV.

The high pressure natural gas delivery systems on board the LNGRV can be used to send-out natural gas at
pressures up to 100 bar either through a submerged turret system into a subsea pipeline or directly ashore
through an articulated off-loading arm similar in nature to the arms used to load and off-load a conventional LNG
vessel.
OTC 19875 5

The EXCELSIOR discharging at the Teesside GasPort in the United Kingdom.

The High Pressure Gas Arm for dock-side regasification facilities (GasPorts).

Throughout either regasification processes neither LNG nor gaseous natural gas (GNG) is released to the
environment nor is it flared.
6 OTC 19875

The LNGRV has been outfitted with complex automation systems and maneuvering systems which enhance the
core functions of the vessel type in order to allow a high-degree of operability in a variety of marine environments.

The Maneuvering Assistance Positioning System (MAPS) allows prescision docking and station-keeping for the LNGRV.

In addition the cargo containment system has a number of reinforcements build into the ‘standard’ system that
allows the ‘membrane-type’ of containment system to function in the offshore environment with partially filled
cargo tank. These reinforcements include areas within the cargo tank insulation system and cargo pump towers.

Risk Management

The LNGRV has been built using a basis of design foundation set within a number of international codes and
regulatory requirements. The vessel and all systems on board as approved and classed by an internationally
recognized Classification Society. As part of the quantitative risk assessment processes used during the design
phase of the LNGRV project, multiple risk assessment tools were used to study Hazard Identification, Hazardous
Operability and Fire Explosion Risk Analysis.

The LNGRV is compliant with all applicable International Maritime Organization (IMO) Codes and Conventions,
applicable Classification Society Rules, applicable Oil Companies Marine International Forum (OCIMF)
Guidelines and Recommendations and Society of International Gas Tanker and Terminal Operator (SIGTTO)
Guidelines, Recommendations and Considerations.

Environmental Stewardship

Since the first of the early generation LNGRV has entered into service a number of process and performance
enhancements have been designed and installed onto the fleet of LNGRVs now in service and those on the way.

The enhancements are designed to reduce the already small amount of air pollutants the LNGRV produces and
reduce the impact of using raw seawater in the steam production and regasification processes. In some cases
these enhancements have also improved the send-out performance of the LNGRV by increasing send-out
capacity and lowering process fuel costs.
OTC 19875 7

The first of the two major improvements involved developing a means of capturing ‘waste-heat’ from the main
plant steam and condensate cycle by using a ‘Heat Recovery System’ (HRS) that in effect circulates the warmed
cooling water that passes through and out of the main condenser across a heat exchanger. The other side of the
heat exchanger is connected to the regasification heating water system where heating water cooled by passing
through the LNG vaporizers is then ‘pre-heated’ by taking the waste heat from the main condenser via this heat
exchanger and then receives additional heat from the closed-loop water heaters.

Schematic of the LNGRV Heat Recovery System.

The HRS has allowed for a reduction in regasification process fuel gas and has the added benefit of closing the
sea chests of the main circulating system so that raw seawater is not necessary for the main steam plant to
function properly. The environmental benefit of this is multi-fold: a minor reduction in air emissions with an
increase in regasification send-out capacity and a major reduction to the threat of macerating icthyoplankton in
the main circulating pumps.

Another new shipboard system that has been installed on board the LNGRVs is used to reduce air emissions by
reduction of nitrous oxides (NOx) that are produced as a result of burning natural gas as a fuel in the steam
generators on board. This is a fairly simple Selective Catalytic Reactor (SCR) which is used to spray a urea
solution into the exhaust gas stream from the main steam plant. The use of the SCR results in almost a 90%
reduction in NOx released into the atmosphere.
8 OTC 19875

Schematic of the Selective Catalytic Reactor.

Development of Market Access Points

The development of market access points in both new and existing markets with increasing base load or seasonal
demand growth is critical to the efficient and flexible utilization of LNGRV assets. The ability to create bespoke
market access solutions using proven basic development, design, permitting, and operational practices allows the
realization of cost effective market access points in time sensitive environments to fully realize opportunities in
constantly changing market conditions.

Deepwater Ports – The adaptation of proven submerged turret single point loading systems from North Sea oil
operations to LNG import terminal applications (Gateways) has allowed for a dramatic shift in both the capital cost
($50 to $150 million) and the in- service timing from project outset to first gas delivery.

The LNGRV deepwater port submerged turret mooring system.

OTC 19875 9

With long lead time equipment fabrication constraints as the basic schedule driver, Deepwater Port applications
can be placed in service in as little as 18 months from Final Investment Decision with actual construction timelines
of less than 7 months. While the permitting of offshore installations presents its own unique challenges, the
incorporation of ways to reduce air emissions and water usage, combined with inherent ability to more readily
address security and safety concerns, makes offshore solutions a preferred market access solution in many
locales.

Dockside Regasification – The development of dockside regasification capabilities (GasPorts) has further
enhanced the ability to rapidly respond to developing market conditions as evidenced by the completion of the
Teesside and Bahia Blanca dockside regasification terminals in less than 12 months and 6 months respectively
from project inception. The ability to utilize suitable existing infrastructure as the basis for such facilities reduces
not only the completion timeline, but the capital investment necessary to realize fully functional terminals for base
load, interruptible, or seasonal service. However, even projects requiring the new construction of quayside
facilities such as the KNPC facility at Mina Al-Ahmadi have also proven to be economical when compared to
traditional land based solutions.

The EXCELSIOR during commissioning activities at Teesside GasPort.

10 OTC 19875

Double-banked STS trans-shipment at the Bahia Blanca GasPort in Argentina.

OTC 19875 11

The High Pressure Gas Arm at a GasPort stlye facility in Mina-Al-Ahmadi, Kuwait.

Regardless of the location of the facility and the permitting environment involved, the development timelines for
floating LNG import solutions have proven time and again to outperform land based facilities of similar capacities
by wide margins.

Comparison of various concept-to-market project timelines.

12 OTC 19875

Regasification Vessel Platform Optimization

With flexibility the hallmark of the offshore value chain, the ability to access a diverse and rapidly changing market
is essential to optimizing value creation. In keeping with this principal, LNGRV’s are specifically designed to
market LNG in several modes:

Conventional Shipping – While purpose built to engage in the regasification of LNG at proprietary terminals, all
LNGRV’s retain the capability of trading in conventional service at all existing traditional loading and discharge
facilities.

Proprietary Terminals – All vessels are capable of discharging regasified LNG at both offshore and dockside
proprietary terminals owned and operated by Excelerate Energy (Gulf Gateway, Northeast Gateway, and
Teesside GasPort).

Third Party Access Points – In addition the proprietary terminals above, the LNGRV’s can interchangeably
access third party access point facilitated by Excelerate Energy for customers requiring infrastructure and
regasification services to import customer sourced LNG supplies.

In a market constantly in flux, this flexibility allows for the rapid redeployment of assets to facilitate cargo diversion
opportunities thus further enhancing value creation by way accessing emergent seasonal fluctuations or arbitrage
opportunities.

Ship to Ship Transfer

In early 2005, Excelerate Energy, in partnership with EXMAR, set out to create a safe, efficient, and reliable
method for commercializing the ship to ship transfer of LNG. As the basis for this development was to react
quickly to new commercial opportunities, the basis of design for the system required that it be capable of
deployment without permanent modifications to either LNGRV or LNGC, that the installation should not require
any hot work, and that it be readily deployable with existing handling systems. Following exhaustive reviews of
LNGC sloshing issues (LNGRV’s are constructed with reinforced membrane containment systems and Class
certified for unlimited tank filling levels) and tank safe level recovery times, boil off gas management, and vessel
motions to determine the widest range of potential ship to ship transfer compatible vessels, a system utilizing *”
flexible composite hoses of the type already approved and fitted on all LNGC’s in compliance with IMO (IGC).
Additional components include 16” x (2) 8” “Y” fittings to allow connection of composite hoses to 16” manifolds’,
emergency release couplings (ERC) fitted at each manifold connection and hydraulically controlled by a portable
HPU, and hose saddles to control hose minimum bending radius and that include incorporated hose brakes to
prevent the uncontrolled fall of hoses between vessel hulls in the even of ERC activation. A mooring arrangement
based upon the use of Yokohama style fenders and utilizing existing vessel lines completes a basic package that
is readily deployable utilizing supply type vessels available world wide. The system, while simple, has been fully
modeled and tested utilizing Bureau Veritas and DnV certified components, has been certified by BV as in full
compliance with the IGC, accepted by the United States Coast Guard for use in designated lightering areas, and
has proven to be safe and reliable in 10 full commercial cargo transfers to date. This system, capable of being
deployed between two vessel adrift, anchored vessels, and alongside dockside regasification facilities (such as
Bahia Blanca), is the only proven commercial method for effecting the ship to ship transfer of LNG, and will be a
key component in the development of floating liquefaction solutions in the near future.
OTC 19875 13

LNG Ship-to-Ship Transfer at Scapa Flow, Orkney Islands, United Kingdom.

Floating Liquefaction

The key component to completing the offshore LNG value chain is floating liquefaction. The following outlines the
process Excelerate Energy has followed as it seeks to identify the components of natural gas that may be found
in stranded or associated gas wells and the steps necessary to process this gas for specific markets. Included in
the discussion are the various candidate liquefaction processes suitable for offshore use and the possible hull
types and containment systems available for consideration.

Capital and associated operational costs are based on process and equipment selections resultant from initial
economic analysis and process evaluations and have been validated by subsequent pre-FEED studies for small
(Sub 1MTPA) and mid-scale (+/- 3MTPA) applications.

Introduction - There are several challenges that are posed by a floating liquefaction facility.

Gas composition – What type of reserve fields lend themselves to floating liquefaction and how are pre-
treatment components designed to afford some flexibility to manage varying qualities?

Processing of impurities – What are the processing modules required to process raw natural gas and
what are the requirements for each?

Space and weight requirements – How large are the liquefaction plants and how much weight is
associated with the processing components?

Operations – What are the manning requirements associated with operating the plant during start-up,
shut-down and during normal operations? How much planned maintenance is required and at what
intervals?

HSE – What Health, Safety, and Environmental concerns are associated with the gas field location, the
processing, and the disposal of impurities?
14 OTC 19875

Vessel design – Which hull form allows for the optimal compromise between deck space/load, cargo
containment volume and constructability?

Gas Composition -Natural gas composition varies greatly depending on the reserve source. A comprehensive
evaluation of specific source data is necessary to determine the final configuration of an offshore floating
liquefaction installation. While major constituent components such as carbon dioxide, nitrogen, NGL’s and
condensates have large impacts on both the design, weight, capital and operating costs of pretreatment, trace
elements such as water, sulfur, mercury, and naturally occurring radioactive materials (NORM) can also greatly
impact the cost and operability of a gas processing and liquefaction facility and must be identified and accounted
for in the initial design.

In general, the two sources of raw natural gas for floating liquefaction will be found in either associated gas that is
a by-product of offshore oil production or in “stranded gas” reserves that are predominantly gas reserves that too
remote to lend themselves to traditional pipeline development. Some stranded gas reserves are estimated to be in
excess of 1.5 TCM with the Caribbean basin, Central and West Africa, as well as Southeast Asia and those
regions’ relatively benign marine environments proving most attractive for initial efforts in floating liquefaction

Regardless of source, raw natural gas must be processed to a certain specification so it can be liquefied.

Raw Gas Pre-treatment - The gas feedstock into a liquefaction plant must consist almost exclusively of methane
and ethane. “Clean” feedstock is achieved through a series of pre-treatment processes. A simplified typical
operation to produce clean feed consists of a slug catcher, acid gas plant which removes CO2, H2S, and other
sulfur compounds, Hg removal, N2 removal, and water removal. Other NGLs are processed through each stage of
cooling.

Slug Catchers - Designed to “catch” and remove larger liquid slugs, this component is placed inline as the raw
gas flows from the well. There are two types of slug catchers: manifold piping and inlet receivers.

Liquids that are recovered from either type of slug catcher are sent to flash drums to facilitate the recovery of
other hydrocarbons.

Acid Gas Removal - Acid Gas Removal is a process used to remove impurities in raw natural gas that corrode
the pipelines and have toxic properties. Carbon Dioxide (CO2), Hydrogen Sulfide (H2S), Carbon Sulfide (CS2),
Mercaptans (RHR), Sulfides (RSR), Sulfur (S), and Carbonyl Sulfide (COS). Carbon dioxide is undesirable
because it is nonflammable and thus lowers BTU content. Hydrogen Sulfide is lethal in high concentrations.

There are several acid gas removal techniques. These are categorized as Solvent Absorption, Solid Adsorption,
Membranes, Direct Conversion, and Cryogenic Fractionation. Solvent absorption can be further broken down into
chemical, physical, or a hybrid process

On a floating production facility, the absorber and regeneration columns must be designed to accommodate wave
motions and resultant accelerations which will increase their size compared to land counterparts.

Trace Impurity Removal - Hydrogen, Oxygen, Radon, and Arsenic are trace elements that could cause problems
in liquefaction of natural gas. Hydrogen is not found in concentrations high enough to pose a problem. Oxygen is
not naturally occurring in natural gas and its source of contamination occurs from leaks in the piping during
processing. Oxygen can cause corrosion and reacts with other gas stream processes such as amines and
glycols, and will react to form water. Radon is a naturally occurring radioactive material and will decay eventually
into other radioactive elements which will accumulate on pipe walls and filters. If sludge and scale concentrations
are high enough, this poses an environmental issue which must be dealt with when piping is discarded.

He, Hg, BTEX, & N2 Removal - Helium, Mercury, and BTEX (Benzene, Toluene Ethyl benzene, and Xlyene) are
other trace elements potentially present in raw gas streams and removed by the use of cryogenic liquefaction,
molecular sieves, and glycol dehydration/amine sweetening processes respectively. The presence of these
compounds and their effect on the capital cost of gas processing equipment and safe operation of the facility,
factor in the evaluation of gas reserve and production data for project viability.

Nitrogen (N2) is often found in relatively small quantities in natural gas and does not have a major effect on gas
liquefaction properties when concentrations are below 2%. The removal or injection of nitrogen is often a key
component for adjusting heat content for pipeline use. Nitrogen is removed from the natural gas stream by
OTC 19875 15

cryogenic distillation, adsorption, or membrane separation. Cryogenic methods are most economical and are the
most common form of nitrogen removal however the Pressure Swing Adsorption (PSA) process and membrane
separation process are also used to extract nitrogen.

NGL Removal/Recovery - Natural Gas Liquids (NGLs) include ethanes, propanes, butanes, and natural gasoline.
If left in natural gas they will freeze during the liquefaction process. Natural gas is considered “wet” when these
condensable hydrocarbons are present. The two most common methods for NGL removal are the use of a
turboexpander or solvent absorption. Vortex tube can also be utilized for both NGL removal and dehydration.

Ammonia - Ammonia synthesis from natural gas is a complex process, but worth noting as one byproduct
produces Urea. Natural Gas is fed through two reformers which convert the methane into ammonia using air and
nitrogen. One more process chemically combines carbon dioxide and ammonia and the result is urea and water.
Once the urea is dehydrated it stays in a powder or granular form.

Water Removal/Dehydration - Water is found in most raw natural gas. It must be removed to avoid
condensation within the pipeline and the formation of hydrates. There are several methods of dehydration that
are used to prevent hydrate formation which can block a pipeline and to reduce the effect of corrosion. The drying
process reduces the dew point of water such that it no longer is able to condense at the lowest pipeline
temperature. Raw gas first flows through a slug catcher, where condensate is removed. The dehydration process
is achieved through two different methods known as adsorption and absorption.

Glycols or their derivatives are used in the absorption process. Gas flows through a glycol absorption unit
whereby the water molecules are absorbed by the glycol. The rich glycol solution is dropped out of the dehydrator
and flows to a flash tank which removes the water content and then is reintroduced as lean glycol into the
dehydrator.

In physical adsorption, water is removed by the attractive forces of the atomic structure of the water to the
adsorbent. Adsorption is a two step process that requires the gas to contact the surface of the adsorbent material
and then travel through the material. The adsorbents used in NG processing are silica gel, activated alumina, as
well as molecular sieves such as alkali aluminosilicates. Although adsorption is a very effective dehydration
technique it has limited capacity and requires two or more adsorption units for continuous operation. In attempts to
achieve a higher efficiency, adsorption processes have been combined so gas flows first through a silica gel
separator and then through a molecular sieve.

For cryogenic liquids, a molecular sieve has been the preferred technology. However, twister or vortex tubes
have been used offshore but require a clean feed gas and currently have limited capacity.

Liquefaction Process Types

Mixed Refrigerant – Single Mixed Refrigerant processes such as the Black and Veatch Prico process have low
equipment counts, reduced footprints, low capital costs, and high reliability rates that likely offset efficiency gains
realized by more complex processes. SMR plants have the added benefit of reduced weight and relatively low
hydrocarbon storage needs.

Nitrogen Expansion - N2 expansion plants are used frequently at peak shaving facilities and use well-proven
technology. However, efficiencies can be problematic and this in conjunction with higher equipment counts and
weights must be considered when evaluating suitability for offshore applications. While nitrogen based systems
are considered by some to be inherently safer for offshore installations since they do not require flare off of
hydrocarbons upset conditions, the weight penalties and efficiency losses must be considered in comparing to
hydrocarbon based systems, particularly those with modest inventories providing easily mitigated risks.

Cascade & C3-MR - Cascade plants have compressor and containment systems for propane, ethylene, and
methane and therefore has a large machinery count. Due to the large space required for this type of liquefaction
plant it is generally uneconomical for offshore applications in the small to mid-scale 1 to 3MTPA range. The C3-
MR process uses propane as its primary coolant and has a larger footprint due to the inventory of propane
required for the cooling process while the Cascade processes use highly flammable and large refrigerant
quantities and greatly increase the project risk.
16 OTC 19875

Process Comparison

While each potential participant in floating liquefaction must reach independent conclusions, all work to date
generally agree on three important design criteria: the facility must be lighter in weight, more compact and
modular in design, and have a lower equipment count. Due to its reasonable efficiency relative to equipment
count, capital cost, reliability, safety and suitability for offshore applications, Excelerate Energy has chosen the
Prico SMR system designed by Black and Veatch as the basis for floating liquefaction process will configure 3
identical, modular 1MTPA trains for maximum redundancy and turndown capability.

Hull Form and Containment - Exact dimensions of a hull shape will be dependent on various factors not the
least of which is the desired containment volume. Based on Excelerate’s 3MTPA baseline design, a storage
capacity of 250,000m³ is required to provide an adequate buffer to continue rated production for a reasonable
amount of time in the event that weather or other factors delay the timely discharge of a cargo to an LNGC. The
principal dimensions are 300M x 60M in a ship shaped barge hull that will be moored on a rotating turret.

Containment Systems - Once the natural gas is processed and liquefied, it must be stored in a suitable tank.
These tanks must be of a design that can withstand the sloshing effect caused by the motion of the vessel on the
water and have enough capacity to meet the delivery cycles between EBRVs. Tank design must also take into
consideration size constraints with respect to the deck equipment and the liquefaction plant. The following is a
brief overview of each common type of LNG tank.

Moss Spherical

The sphere design reduces the sloshing effect. It also has less filling restrictions and requires no internal
stiffeners. This tank design has good fatigue properties. The disadvantage to the sphere is that it is not
the most efficient use of space, but is fabricated in parallel with the main structure of the vessel.

Membrane

The membrane design is common on new build LNG tankers but is subject to sloshing impact loads and
unless reinforced, has some filling restrictions.

SPB prismatic

The Ishikawajima Harima Heavy Industries, Co., Ltd's (IHI) SPB (Self-supporting, Prismatic IMO type B)
tank also has the advantage of being built in parallel with the hull and topside facilities then installed
during the integration phase. While there are reportedly less filling restrictions, SPB tanks do have
extensive internal stiffeners and may be prone to structural fatigue.

Operational Considerations - As part of the due diligence in building a new class of vessel, statutory and
regulatory bodies will need to be involved to ensure “buy-in” for the new design. These bodies include, but are
not limited to Class, IMO, SOLAS, OCIMF, IMO, SIGGTO, Statutory or Port State Regulations and numerous
industry (API, ASME, ISO, etc) standards.

As the liquefaction plant layout, hull design, and containment system is designed the following elements of design
concepts should be taken into consideration to ease operations and increase safety.

• Minimizing equipment count to reduce capital and operating costs

• Minimize hydrocarbon storage
• Maximize the systems tolerance for differing gas compositions to increase “second use”
commercial opportunities
• “Marinization” of onshore plant components to increase strength, durability, and weathering for
offshore use.
• Increase process shell side design pressures to reduce temp. trips of plant and flare offs
• Reduce mast and tower counts for stability issues.
• Design and install emergency flare and blowdown systems to effectively and safely manage out
of design operating conditions.
• Factor the “human element” into the design of living spaces, operational planning, and hazard
assessments.
OTC 19875 17

Floating Liquefaction – Economics

With a baseline economic analysis and pre-FEED studies complete, Excelerate believes floating liquefaction on
mid-scale levels with gas processing for base case feed gas qualities (<13% Carbon Dioxide, <3% Nitrogen, and
<17ppm Hydrogen Sulfide) utilizing the Prico (SMR) process, and providing for adequate outlet gas quality to
target global markets is comfortably achievable at an estimated cost of $650/ton. Equally competitive capital costs
are anticipated to be realized upon completion of an ongoing pre-FEED study for sub 1MTPA small scale
conversion based floating liquefaction solutions.

Conclusion

Excelerate Energy is pursuing the development of a floating liquefaction vessel using the knowledge and
expertise gained through an existing LNG regasification business. Efforts with offshore and dockside applications,
combined with the successful ship-to-ship transfer of LNG, have prepared Excelerate for the unique challenges
that will be faced in the new arena of floating LNG production.

Together with Exmar and Black & Veatch, Excelerate is advancing design efforts for construction of the Energy
Bridge Liquefaction Vessel (EBLV). The EBLV combines the liquefaction process, storage tanks, loading
systems, and other LNG-related infrastructure into a single floating unit. Excelerate’s solution capitalizes on the
expertise gained from industry-leading efforts of the combined team in floating regasification, shipping,
liquefaction, gas processing and downstream marketing.

Excelerate has selected the PRICO® single mixed refrigerant LNG liquefaction process as the heart of the EBLV.
PRICO’s reduced equipment count and compact layout both contribute to an efficient use of topside deck space
and reduce overall capital expenditures, while the modular approach to design allows Excelerate to scale projects
based on field size and desired production rates. The unit capacity of the current design study being performed is
for a 3.0 million ton per annum liquefaction plant with 250,000 m3 of LNG/LPG storage.

Excelerate Energy has a history of consistently delivering innovate floating LNG solutions and looks to continue
that success with the advancement of upstream initiatives. Excelerate is uniquely positioned along the floating
LNG value chain to employ existing assets and experience to develop and deliver a complete reserve-to-market
solution to the task of optimizing the offshore LNG value chain.

3 mtpa EBLV depicted with LNGC and LPG vessels in offloading positions.