Exxonmobil Presentation Agdc May 7 2014

8/10/2019 Exxonmobil Presentation Agdc May 7 2014

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Alaska LNG ProjectConcept Information

Work Product In Progress

Alaska LNG Project

Project Overview with AGDC

Anchorage, Alaska

May 7, 2014


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Alaska LNG Project - Overview

Alaska LNG Plant

Conceptual Layout

Results ofURS ArcGISLocation SuitabilityScreening Study

- 1 -

Lead LNG Plant Site Selection- Extensive Analysis of SouthCentral coast

- 20+ options analyzed; 4-5 sites feasible

- Geotechnical, construction, operation issues

Lead LNG Plant SiteNikiski Industrial Area

BP, ConocoPhillips, ExxonMobil, TransCanada and the State ofAlaska are working together to progress the Alaska LNG project:- 300+ people involved in project design work-

Multiple third party contractors engaged many Alaskan- Leveraging Denali, APP, related material ($700M past work)- Preliminary capital estimate - $45-65 Billion (2012 dollars)

Key project design accomplishments to date:- Integrated Basis of Design heat/material balance complete- Confirmed ability to integrate into existing operations- Completed project design, announced concept Feb13- Finalized lead LNG plant site decision, announced Oct13

Completed 2013 Summer Field Season:- Cultural resource assessment (>6,500 acres)- Hydrology / Lakes / Fisheries studied (37 / 17 / 20)- Traditional knowledge, subsistence, ethnographic surveys- 150 people involved

Key project issues to address:- Mega-project challenges (labor, resources, equipment, etc.)-

Uncertainty related to permit timing / scope- Commercial/fiscal issues with all parties, including State

The ARC of Success- Al ignment four primary resource owners, working together- Risk reduction identify / mitigate risk and uncertainty- Cost low cost wins, defines competiveness/viability


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Work Product In Progress2

Alaska LNG Concept Summary - Upstream

PTU (62 miles east of PBU/GTP area)

Initial Production System (IPS) project in progress - 2016 SU

Preliminary AK LNG design basis for PTU: Leverage IPS facilities, add fourteen new wells

Add new gas facilities to existing central pad / facilities

New 30 gas line from PTU to GTP in Prudhoe Bay

Peak workforce 500-1,500 people

PBU Tie-in (adjacent to proposed GTP location)

Installation / tie-in managed by Prudhoe Bay Operator

Tie into existing CGF, deliver gas to new Gas Treatment Plant

Gas project / deliveries tied to future PBU operations

Preliminary plan is to inject CO2 using existing injection systems

as appropriate

PTU Field Layout

Process

Utilities

PowerGeneration

Point Thomson

Central Pad

Compression

PBU Central Gas Facilit y Tie-in


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Alaska LNG

Pipeline Elevation Design Example

Potential

Pipeline Routes

Alaska LNG Concept Summary - Pipeline

Gas Pipeline and Compression Stations

800+ mile 42 x80 pipeline

3-3.5 billion cubic feet gas per day

Eight compressor stations (30kHP each) Pipeline contents will be treated gas, impurities removed at NS GTP

Designed to manage continuous and discontinuous permafrost regions

Expansion potential with additional compression if appropriate

Refining route based on summer field information, continued design work

Five off-take points for Alaska gas delivery

Peak workforce 3,500 - 5,000 people


5/18



Alaska LNG - Concept Summary GTP / LNG Plants

NS Gas Treatment Plant

Defined PBU integration for gas inlet, discharge

Designed to remove gas impurities

Four amine trains with compression, dehydration and chilling

Prime power generation (5 units, 54kHP)

All required utilities, infrastructure and camps

Facility will be modularized, sealifted to location

Peak workforce 500-2,000 people

LNG Plant, Storage and Marine Facility

Three 5.8 million tons per annum (MTA) LNG trains (17-18MTA)

- Plant receives 2.2 - 2.5 billion cubic feet per day to liquefy

- LNG production varies with ambient temp (4.9 - 6.3 MTA)

- Small volume of stabilized condensate (~1,000 bbl/day)

Integrated utility system with all utilities on site

Three 160,000 cubic meter LNG storage tanks

Conventional jetty with two berths (15-20 LNG Carriers)

Peak workforce 3,500 5,000 people for LNG plant

Peak workforce 1,000 1,500 people for marine facility

Evaluating modularization to manage risks

NS Gas Treatment Plant

LNG Plant and Storage


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Work Product In Progress- 5 -- 5 -

Objectives:

Identify 3-5 sites viable for series of LNG trains and associatedMarine Terminal in close proximity

Site must be suitable as termination point for feed gas pipeline and for

LNG carrier load-out

Deliverable:

One primary lead LNG plant site with suitable alternate sites

Process:

Acceptability determined by extensive review process from companyand contract experts evaluating 50+ distinctive criteria (12mo process)

Parallel/independent ArcGIS analysis

Quantitative Risk Analysis (QRA) used to integrate analysis

A parallel path Site Selection process that uses independent approaches and provides checks & balances.

Alaska LNG - Site Selection Process

InitialList of

21 Sites

8 RecommendedSites Based on

Analysis of GIS

GISSuitabilityAreas

1stSME FlawScreening(13 Sites)

2nd SME FlawScreening(8 Sites)

Reconciled List of 8Common Sites

Location Shift ToMatch Terrain

Lead SiteSelected

Expert Input toSupport

Evaluation

SME Common Listof 8 Sites

ConceptualEngineering for5 Validated

Rep. Locations

Continued ExpertInput to Support

Evaluation

VMT Co-locationConsidered

QRA forRepresentative

Sites

SiteAcceptabi li ty

Marine

LNG Siting

ERL

Geotechnical

StakeholderImpacts

PipelineApproach


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Alaska LNG Lead Site Design Work

NRC Ice Modeling of Cook Inlet Ice

LNG Plant Site Selection

Announced Nikiski area, on the Kenai Peninsula as lead site in Oct13

Extensive data acquisition program in 2012 to evaluate multiple sites

Focus on geotechnical, marine, civil, and pipeline approach issues- Particular focus on seismicity, faults/folds, volcanic, tsunami risks

- Evaluate marine bathymetry, metocean, navigation, infrastructure issues

Assess constructability and long term operations

Preliminary emissions modeling complete

Nikiski area development requires less civil /construction work than other sites

Marine Viability Assessment

Design focused on conventional LNG carriers (~160,000 mt3)

Engaged local Alaskan pilots, evaluated marine operations

Completed maneuverability study to demonstrate ability to safely moor, load

Evaluating tug effectiveness, required support for terminal

Extensive modeling with international agencies to confirm intrinsically safe design

Completed site visits to existing operations with similar marine environments Gathering additional metocean data to validate design
http://www.google.com/url?sa=i&rct=j&q=lng+ship+cook+inlet+ice&source=images&cd=&cad=rja&docid=pq33lFvM2FPTpM&tbnid=TQr39I2kfTZLbM:&ved=0CAUQjRw&url=http://www.arcticgas.gov/lng-cold-facts-about-hot-commodity&ei=tcyCUYGCBJD88QTwq4CwCQ&bvm=bv.45960087,d.dmQ&psig=AFQjCNHAIGY2iYxiu91Qq1NRj8OyBOXXLw&ust=1367612971357361


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Recent Progress - Prudhoe Bay

7

Prudhoe Bay

Continued data capture/analysis of PBU gas

composition

Evaluated field dehydration performance

Continuing depletion planning

Developing integrated injection system

Evaluating integrated power grid

Preliminary CO2Re-Injection Design

Prudhoe Bay Unit Central Gas Facility

Preliminary CO2Re-InjectionDesign

69KV PBU Power Grid


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Recent Progress - Point Thomson

8

Point Thomson

Comparing plot plan options for

safety and operability

Evaluated process design

requirements

Developing design basis for future

engineering work

Point Thomson Unit Central Pad


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Recent Progress Gas Treatment Plant

9

Gas Treatment Plant

Confirmed viability of 3 train design, aligns

gas treatment plan with LNG plant Finalized CO2design / handling basis

Working to modularize plant design

Evaluating sealift plans / orderNS Gas Treatment Plant Sealift Option Exampl e


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Recent Progress Pipeline

Pipeline

Refined route from PBU to Livengood, finalizing

route from Livengood to Cook Inlet

Working special design areas

- Atigun Pass - Denali National Park Area

- Yukon River - Cook Inlet

- Progressing fundamental technical work on

geohazard analysis, waterway crossings,

hydraulics and design

Denali Park Area

10

Pipeline Hydraulic Model Example Compressor Station Locations

Proposed Pipeline Route

DENALI NATIONAL PARK COOK INLET


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Recent Progress LNG Plant

11

LNG Plant and Marine

Lead site selected

Completed plans for metocean data gathering

Ambient air monitoring stations / plan finalized

Progressing work on LNG capacity and

technology

Results ofURS ArcGISLocation SuitabilityScreening Study

Lead LNG Plant Site Selection- Extensive Analysis of SouthCentral coast

- 20+ options analyzed; 4-5 sites feasible- Geotechnical, construction, operation issues

Lead LNG Plant Site

Nikiski Industrial Area


13/18



Recent Progress Environmental, Regulatory and Land

Cultural Resource

Survey Areas

Environmental, Regulatory and Land

Safe summer field season 2013

No incidents for >40,000 man-hours, 90,000 miles

No reportable spills or public complaints

Peak workforce of over 130 contractor staff

completed survey work from PBU to Livengood

Over 6,500 acres surveyed for cultural resources

Over 75 hydrology, lakes and fisheries surveyed

Traditional knowledge and ethnographic surveys


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Forward Plan - Environmental, Regulatory and Land

Plans for a safe 2014 field season

Civil and scientific surveys from Livengood to Nikiski

Subsistence and health impact surveys

Marine current and ice profiling

Geotechnical and geophysical surveys

Collaboration with state and federal agencies for

permitting and approvals

Local community engagement for field study scopes


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Att h t 1


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Southcentral Alaska LNG Integrated Team

Producing FieldsLead: BP

PipelinesLead: Alaska Pipeline Project

LNG PlantLead: ConocoPhillips

Integration TeamLead: ExxonMobil

Commercial TeamLead: BP

Concept TeamLead: ExxonMobil

Management Committee

Technical

Committee

Multimillion Dollar, Four-Company Effort 125+ Employees, 100+ Contractors

Joint work commenced March 31, 2012 after completion of the Pt. Thomson Settlement / joint work agreements

Cooperative effort among the leading North Slope producers and a leading North American pipeline company

Identified potentially viable LNG project options to monetize ANS natural gas

Used company strengths, shared information / expertise; built upon past efforts, sought out new ideas

Attachment 1

Att h t 2


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Alaska Southcentral LNG Project Concept Description

Gas TreatingLocated at North Slope or Southcentral LNG siteRemove CO2and other gases and dispose / useFootprint: 150 - 250 acresPeak Workforce: 500 - 2,000 peopleRequired Steel: 250,000 - 300,000 tonsAmong largest in world

Liquefaction Plant Capacity: 15 18 million tonnes per annum (MTA)

3 trains (5-6 MTA / train) Potential areas: 22 sites assessed in Cook Inlet, Prince

William Sound and other Southcentral sites Footprint: 400 - 500 acres Peak Workforce: 3,500 - 5,000 people Required Steel: 100,000-150,000 tons

Storage / Loading LNG Storage Tanks, Terminal Dock; 1 - 2 Jetties Design based on 15 20 tankers Peak Workforce: 1,000-1,500 people

Estimated Total Cost: $45 $65+ Bil lion Peak Construct ion Workforce: 9,000 15,000 jobs

Operations Workforce: ~1000 jobs in Alaska

Attachment 2

Descriptions and cost s are preliminary in nature and subject to change. Cost range excludes inflation.

PipelineLarge diameter: 42- 48 operating at >2,000 psiCapacity: 3 - 3.5 billion cubic feet per dayLength: ~800 miles (similar to TAPS)Peak Workforce: 3,500 - 5,000 peopleRequired Steel: 600,000 - 1,200,000 tons

State off-take: ~5 points, 300-350 million cubicfeet per day, based on demand

Producing Fields~35 TCF discovered North Slope resourceAdditional exploration potentialAnchored by Prudhoe Bay and Pt. Thomson with

~20 years supply availableUse of existing and new North Slope facilitiesConfirmed range of gas blends from PBU/PTU cangenerate marketable LNG product

Peak Workforce: 500 1,500 people

Attachment 3


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GO

LNGProject

Oper

ations

Execute: Final engineering Financing Procurement Fabricate / Logistics / Construct Prepare for Operations

Complete Govt / Reg. Issues: Secure remaining construction

/ operating permits Stakeholder engagement

Implement businessstructure & agreements

Commission / start-up

Southcentral Alaska LNG Work Plans / Key Decision Points

Evaluate:

Range of technically viableoptions for major projectcomponents

Business Structure In-state gas / export LNG demand

Screen commercial viability

Viable Technical Option(s) Identified Government Support Permits / Land Use Achievable

Potential Commercial Viability

Requirements to Take Next Step:

Progress :

Preliminary engineering torefine concept

Business structure Financing plan

Start individ ual gas / LNGsales / shipping efforts

Assess commercial vi abi lit y

Viable technical option Government Support Permits / Land Use Underway

Potential Commercial Viability

Activities

Complete:

Front-end engineering & design Major contract preparation Business structure Financing arrangements

Solicit Interest of Others

Advance Govt / Reg. Iss ues : Key permit / land use approvals Stakeholder engagement Secure DOE Export License

Execute individ ual gas / LNGsales / shipping agreements

Confirm comm ercial viability

Secure Permits / Land Use / Financing /Key Commercial Agreements

Confirm Commercial Viability

Execute EPC contracts

Attachment 3

Peak Staffing: ~200 400 - 500 500 1,500 9,000 15,000

Cost ($): Tens of Millions Hundreds of Millions Billions Tens of Billions

Est. Engineering / Technical Duration*: 12 - 18 Months 2 - 3 Years 5 - 6 Years

ConceptSelection

Pre-FEED

FEED(Front-End

Engineering &Design)

EPC(Engineering,

Procurement &Construction)

Decisionto Build the

ProjectDecision Decision

(Today)

PTUSettlement,Joint Work

Agreements

* NOTE: Duration of various phases may be extended by protracted resolution of fiscal terms, permittin g and regulatory delays, legal challenges,changes in com modit y market outlook, time to secure long-term LNG contracts, labor sho rtages, material & equipm ent availability, weather, etc.

GO GO GO

Solicit Interest of Others

Establish Government Support and Advance Regulatory Issues: Competitive oil tax environment; predictable / durable LNG project fiscal

terms; AGIA Issues Assure ability to secure regulatory approvals / permits / land use Environmental activities / Technical data collection Stakeholder engagement File DOE Export License

Exxonmobil Presentation Agdc May 7 2014

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