Alaska LNG Project

Concept Information

Alaska LNG Project

Project Overview with AGDC
Anchorage, Alaska
May 7, 2014

Work Product In Progress

Alaska LNG Project

Concept Information

Alaska LNG Project - Overview

BP, ConocoPhillips, ExxonMobil, TransCanada and the State of
Alaska 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

Alaska LNG Plant

Conceptual Layout

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

Results of
URS ArcGIS
Location Suitability
Screening Study

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
- Alignment four primary resource owners, working together
- Risk reduction identify / mitigate risk and uncertainty
- Cost low cost wins, defines competiveness/viability

-1-

Lead LNG Plant Site

Nikiski Industrial Area

Lead LNG Plant Site Selection

- Extensive Analysis of SouthCentral coast
- 20+ options analyzed; 4-5 sites feasible
- Geotechnical, construction, operation issues

Work Product In Progress

Alaska LNG Project

Concept Information

Alaska LNG Concept Summary - Upstream

PTU Field Layout

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

Point Thomson
Central Pad

Compression

Utilities

Process

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

Power
Generation

PBU Central Gas Facility Tie-in

Preliminary plan is to inject CO2 using existing injection systems

as appropriate

Work Product In Progress

Alaska LNG Concept Summary - Pipeline

Alaska LNG Project

Concept Information

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

Potential
Pipeline Routes

Alaska LNG
Pipeline Elevation Design Example

Work Product In Progress

Alaska LNG - Concept Summary GTP / LNG Plants

Alaska LNG Project

Concept Information
NS Gas Treatment Plant

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 and Storage

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

Work Product In Progress

Alaska LNG Project

Concept Information

Alaska LNG - Site Selection Process

Objectives:
Identify 3-5 sites viable for series of LNG trains and associated
Marine 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 company
and contract experts evaluating 50+ distinctive criteria (12mo process)
Parallel/independent ArcGIS analysis
Quantitative Risk Analysis (QRA) used to integrate analysis

GIS
Suitability
Areas

8 Recommended
Sites Based on
Analysis of GIS

Reconciled List of 8
Common Sites

Initial
List of
21 Sites

1st SME Flaw

Screening
(13 Sites)

2nd SME Flaw

Screening
(8 Sites)

Marine

Pipeline
Approach

LNG Siting

Site
Acceptability
Stakeholder
Impacts

ERL

Geotechnical

Location Shift To
Match Terrain

VMT Co-location
Considered

SME Common List

of 8 Sites

Conceptual
Engineering for
5 Validated
Rep. Locations

Expert Input to
Support
Evaluation

Continued Expert
Input to Support
Evaluation

QRA for
Representative
Sites

Lead Site
Selected

A parallel path Site Selection process that uses independent approaches and provides checks & balances.
-5-

Work Product In Progress

Alaska LNG Project

Concept Information

Alaska LNG Lead Site Design Work

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

NRC Ice Modeling of Cook Inlet Ice

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

Work Product In Progress

Alaska LNG Project

Concept Information

Recent Progress - Prudhoe Bay

Preliminary CO2 Re-Injection Design

Prudhoe Bay
Continued data capture/analysis of PBU gas
composition

Preliminary CO2
Re-Injection
Design

Evaluated field dehydration performance

Continuing depletion planning
Developing integrated injection system
Evaluating integrated power grid

69KV PBU Power Grid

Prudhoe Bay Unit Central Gas Facility

Work Product In Progress

Alaska LNG Project

Concept Information

Recent Progress - Point Thomson

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

Work Product In Progress

Recent Progress Gas Treatment Plant

Alaska LNG Project

Concept Information

Gas Treatment Plant

Confirmed viability of 3 train design, aligns
gas treatment plan with LNG plant
Finalized CO2 design / handling basis
Working to modularize plant design
Evaluating sealift plans / order
NS Gas Treatment Plant Sealift Option Example

Work Product In Progress

Alaska LNG Project

Concept Information

Recent Progress Pipeline

Denali Park Area

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

Proposed Pipeline Route

- Progressing fundamental technical work on

geohazard analysis, waterway crossings,
hydraulics and design

Pipeline Hydraulic Model Example Compressor Station Locations

DENALI NATIONAL PARK

COOK INLET

10

Work Product In Progress

Alaska LNG Project

Concept Information

Recent Progress LNG Plant

LNG Plant and Marine

Results of
URS ArcGIS
Location Suitability
Screening Study

Lead site selected

Completed plans for metocean data gathering
Ambient air monitoring stations / plan finalized

Lead LNG Plant Site

Nikiski Industrial Area

Progressing work on LNG capacity and

technology
Lead LNG Plant Site Selection
- Extensive Analysis of SouthCentral coast
- 20+ options analyzed; 4-5 sites feasible
- Geotechnical, construction, operation issues

11

Work Product In Progress

Recent Progress Environmental, Regulatory and Land

Alaska LNG Project

Concept Information

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

Cultural Resource
Survey Areas

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

Work Product In Progress

Forward Plan - Environmental, Regulatory and Land

Alaska LNG Project

Concept Information

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

Work Product In Progress

Alaska LNG Project

Concept Information

Alaska LNG Project

Back-Up Material
Attachments to Oct-12 Letter to Governor Parnell

Work Product In Progress

Attachment 1

Southcentral Alaska LNG Integrated Team

Management Committee
Commercial Team
Lead: BP

Technical
Committee

Concept Team
Lead: ExxonMobil

Producing Fields

Pipelines

LNG Plant

Integration Team

Lead: BP

Lead: Alaska Pipeline Project

Lead: ConocoPhillips

Lead: ExxonMobil

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 2

Alaska Southcentral LNG Project Concept Description

Producing Fields

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

~35 TCF discovered North Slope resource

Additional exploration potential
Anchored by Prudhoe Bay and Pt. Thomson with
~20 years supply available
Use of existing and new North Slope facilities
Confirmed range of gas blends from PBU/PTU can
generate marketable LNG product
Peak Workforce:
500 1,500 people

Storage / Loading

Large diameter: 42- 48 operating at >2,000 psi

Capacity:
3 - 3.5 billion cubic feet per day
Length:
~800 miles (similar to TAPS)
Peak Workforce: 3,500 - 5,000 people
Required Steel: 600,000 - 1,200,000 tons
State off-take: ~5 points, 300-350 million cubic
feet per day, based on demand

Pipeline

LNG Storage Tanks, Terminal

Dock; 1 - 2 Jetties
Design based on 15 20 tankers
Peak Workforce: 1,000-1,500 people

Gas Treating
Located at North Slope or Southcentral LNG site
Remove CO2 and other gases and dispose / use
Footprint:
150 - 250 acres
Peak Workforce: 500 - 2,000 people
Required Steel: 250,000 - 300,000 tons
Among largest in world

Estimated Total Cost: $45 $65+ Billion

Peak Construction Workforce: 9,000 15,000 jobs
Operations Workforce: ~1000 jobs in Alaska
Descriptions and costs are preliminary in nature and subject to change. Cost range excludes inflation.

Attachment 3

Southcentral Alaska LNG Work Plans / Key Decision Points

PTU
Settlement,
Joint Work
Agreements

GO

Viable Technical Option(s) Identified

Government Support
Permits / Land Use Achievable
Potential Commercial Viability

Concept
Selection

Decision

GO

Viable technical option

Government Support
Permits / Land Use Underway
Potential Commercial Viability

PreFEED

Secure Permits / Land Use / Financing /

Key Commercial Agreements
Confirm Commercial Viability
Execute EPC contracts

FEED
GO

Decision

(Front-End
Engineering &
Design)

Decision
to Build the
Project

EPC
GO

(Engineering,
Procurement &
Construction)

(Today)
Peak Staffing:
Cost ($):

~200

400 - 500

500 1,500

9,000 15,000

Tens of Millions

Hundreds of Millions

Billions

Tens of Billions

12 - 18 Months

2 - 3 Years

5 - 6 Years

Activities

Est. Engineering / Technical Duration*:

Evaluate:

Progress:

Complete:

Range of technically viable

options for major project
components
Business Structure
In-state gas / export LNG demand

Preliminary engineering to
refine concept
Business structure
Financing plan

Solicit Interest of Others

Establish Government Support and Advance Regulatory Issues:

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

Solicit Interest of Others

Advance Govt / Reg. Issues:

Complete Govt / Reg. Issues:

Key permit / land use approvals

Stakeholder engagement
Secure DOE Export License

Secure remaining construction

/ operating permits
Stakeholder engagement

Start individual gas / LNG

sales / shipping efforts

Execute individual gas / LNG

sales / shipping agreements

Implement business
structure & agreements

Assess commercial viability

Confirm commercial viability

Commission / start-up

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

Screen commercial viability

Front-end engineering & design

Major contract preparation
Business structure
Financing arrangements

* NOTE: Duration of various phases may be extended by protracted resolution of fiscal terms, permitting and regulatory delays, legal challenges,
changes in commodity market outlook, time to secure long-term LNG contracts, labor shortages, material & equipment availability, weather, etc.

LNG Project
Operations

Requirements to Take Next Step: