Caterpillar natural gas overview p resentation 3 13-2013

POWERING

PROGRESSWe help build roads,

power engines, turn

on lights, transport

goods and provide

financing to create

lasting change.

Confidentiality: Caterpillar Green

Caterpillar and Natural Gas

1

Gas TurbinesElectric Power and Gas Compression

A World Leader Today …Gas EnginesElectric Power and Gas Compression

… Investing for the Future

Gas SolutionsClass Leading Efficiency

Dual Fuel Enginesand Retrofit Kits

Oil & Gas

Marine Mining

Rail


A Growing Opportunity …

15.000

10.000

5.000

0

2030

28%

26%

27%

202520202015201020052000

25%

23%

38%

HydroelectricityNuclear EnergyBiofuelsRenewables

Energy Production

2% CAGR

Global Trends

–

World Population

–

Migration to Cities

Energy: +2% CAGR

Gas Demand

Drivers

–

Plentiful

–

Cheap

–

Cleaner than other Fossil Fuels

Alternative Processes

Alternative Fuels

Natural Gas

Oil

Coal

Source: 2030 BP Energy Forecast (Million tons oil equivalent)


120

100

80

60

$/bbl

40

20

01,000 8,0003,000 6,0005,0004,000 7,0002,0000

Long-Term Oil Supply Cost CurveRemaining Supply Estimate

Resources (billion barrels)

AME Oil

Other Conv.

Oil

CO

2–EO

RA

rctic

Production increasingly shifting to deepwater

Heavy Oiland

Bitumen

OilShales

Gas to Liquids (GTL)

Coal to Liquids(CTL)

Majority of Current

Consumption

Majority of Future Consumption

Dee

pwat

er

North America Natural Gas Supply CurveAnnual Production Projection 2020

Source: EIA, Credit Suisse, Goldman Sachs, INGAA, Company Reports, CERA, Client Interviews, World Energy Outlook 2008 by International Energy Agency, Booz & Company

20 1816 22 24 26 28 30 32 34

Volume (Quadrillion Btu/Year)

020

1

2

12 1410864

$/mmBtu8

7

6

5

4

3

Forecasted NADemand(2020)

ConventionalUnconventionalLNG

3

It’s Abundant and Cheap … Compared to Diesel


Economic Advantage of GasEstimated Annual Fuel Savings**

** Price spread of $2 per DGE and gas substitution of 65%

$ 182 million

$0

$7

$14

$21

$28

US Germany China India Brazil$0

$1

$2

$3

$4

400 EMD Locomotives

$ 17 million25 Cat 797 Trucks

$ 36 million50MW Power Plant

$ 6 millionTypical Fracturing Crew

$/mmBTU $/DGE

Pricing Differential: Diesel to Natural Gas2011 Actual

* Large EPG and Industrial Customers

Long-termGas Contracts

Fixed GasPricing

4

Customer Economics


Lower Emissions … Compared to Diesel

Emissions Natural Gas v. Diesel

Soot Lower at same NOx emission

NOx Lower at same Soot emission

CO2 Lower per unit fuel burned

Fuel Specific Conclusions

Actual Emission Benefits Very Dependent On System Architecture!


Gas Leadership is …

6

The Best Performance The Best Support

The Best Customer Value: Best Product Life Cycle Cost


SPARK-IGNITED:

Spark-ignited engines only burn gas. The gas is ignited with a spark plug.

They are typically used in continuous speed applications like electric power and gas compression.

All of the current Caterpillar production portfolio of gas engine products are spark-ignited.

DUAL-FUEL :

Dual-Fuel engines burn both gas and diesel at the same time. The gas

is ignited by compression of the diesel.

They are typically used in highly transient or very power dense applications like well-fracturing, rail, and mining trucks.

Caterpillar is in the process of introducing a full line of dual fuel engines and kits with two technology options: Dynamic Gas Blending and HPDI.

Gas Product Definitions

7Confidentiality: Caterpillar Green

DYNAMIC GAS BLENDING (DGB)


Oil & Gas

Marine Mining

Rail

S Y S T E M S A N D

K I T S

3512 Land Electric Drilling Module

BUILDING CONFIDENCE• Lower fuel costs -

up to 70% replacement of diesel with gas

• Use gas when it is available and diesel when it is not

• Continuous adjustment to fuel quality and pressures

• Wide variety of fuels from associated gas to gasified LNG

• Maintain diesel power and transient response

• Maintain service intervals and component life

• Improved display performance and troubleshooting

• Reduce gas flaring by consuming dry field gas

• Maintain original emissions certification with retrofit kit


HIGH PRESSURE DIRECT INJECTION (HPDI)


S Y S T E M S A N D

K I T S

THE FUTURE OF MOBILE GAS• Lower fuel costs -

up to 95% replacement of diesel with gas

• Maintain diesel power, transient response, and reliability

• Capable of meeting Tier 4 off-highway and rail standards with EGR and DOC

• Engine retrofit is fuel systems only –

uses robust diesel components

• Engine controls work like diesel, no additional complexity

• Same or better fuel efficiency compared to Tier 3 base engine

• 5 -

7% better fuel efficiency than micro-pilot engines at Tier 4 emissions

• Rail and Mining applications production 1Q2017

• Tanks and tender cars will be adapted to vehicles to deliver LNG

HPDI Dual Fuel injector replaces existing diesel

injector

AcceleratingThrough

Partnership


http://www.westport.com/

SMARTER ENERGY SOLUTIONS


Oil & Gas

CG-170 Electric Power Engine

HIGH PERFORMANCE WITH LOW OPERATING COSTS

• Broadest product line in the industry

• Maximum efficiency in extended-duty power distribution

• Total plant efficiency up to 90% with co/tri-generation

• Wide variety of fuels from associated gas to all types of biofuels

• Including landfill, digester, sewage, coal, and coal-bed gasses

• Full systems including master controls, switchgear, and UPS

• Full service customer support agreements available

• Offered globally through the Caterpillar dealer

• Extended maintenance intervals up to 4,000 hours

• Optimized lubrication systems reducing oil requirements

BEST CUSTOMER VALUEBest Product Life Cycle Cost

10

ELECTRICAL EFFICIENCY



GAS COMPRESSION


Oil & Gas

T U R B I N E S A N D

E N G I N E S

MARKET LEADING GAS TURBINES AND COMPRESSORS

Solar C40 Gas Compressor

MARKET LEADING SPARK IGNITED GAS ENGINES

• The widest range of prime mover choices• Will burn almost any gaseous fuel • Can be programmed to switch from one fuel to another• Innovative electronic controls provide superior performance• Excellent fuel economy and dependability • Generally available in dealer stock•

Gas compressor packages globally offer Cat®

gas engines as standard or optional power.

INCREASING POWER, MORE FUEL FLEXIBILITY, AND FILLING PRODUCT GAPS12Confidentiality: Caterpillar Green

THREE CONCLUSIONS:

Large engines are going gas.

It takes the whole value chain to transform to the gas economy.

-

Partnership opportunity to demonstrate technology

-

Partnership opportunity to develop infrastructure

-

What else can we do to help?

Caterpillar is committed to gas.

Summary


Caterpillar natural gas overview p resentation 3 13-2013

Documents

associated gas

gas flaring

gas substitution

gas leadership

conventional oil gas

gas product definitionsspark

diesel power

dualfuel engines