ConocoPhillips · NYSE:COP

ConocoPhillips — 2019 Gastech Conference

18 slides from ConocoPhillips's conference presentation, Sep 17, 2019

  1. Slide 1: Egyptian LNG Plant Optimization

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  2. Slide 2: Agenda

    AGENDA I. Timeline of Events II. Risk Realization III. Operational Challenges IV. Accomplishments • Low Feed Gas Supply • BAHX Thermal Cycles • High Turndown Ratio Operation • Operational Excellence • Feed Gas Interruptions • Corrosion Under Insulation Mode • Strategy Financial (CUI) • Offline Plant

  3. Slide 3: Timeline of Events

    TIMELINE OF EVENTS  The Egyptian LNG facility is operated by Egyptian LNG (ELNG), consisting of two LNG trains owned by Shell, Petronas, EGas and Engie.  Both trains utilize the ConocoPhillips Optimized Cascade® LNG process, each with design capacity of 3.6 MTPA. ELNG FEED GAS SUPPLY PROFILE TIMEL

  4. Slide 4: Challenges Realized

    CHALLENGES REALIZED  ELNG recognized a challenging opportunity if sustained operation at high turndown ratios could be realized for long periods  Ultimately achieved from mid-2013 to mid-2018 100% +  ELNG succeeded in achieving turndown ratio of feed rates from the contractual 35% to as low as 13

  5. Slide 5: BAHX Thermal Cycles

    BAHX THERMAL CYCLES  Two inevitable facts about BAHX exchangers are:  No definable endurance limits TDI TDI  Stresses are cumulative  One advantage of the Optimized Cascade Process is that the adjacent pass-to-pass Illustration for Differential Temp during Feed Gas temperature profiles for most

  6. Slide 6: BAHX Thermal Cycles

    BAHX THERMAL CYCLES  Two small BAHXs used as part of a heat integration scheme between fractionation columns within the heavy hydrocarbon removal system have proven problematic for ELNG due to the thermal stresses associated with sudden feed composition changes.  ELNG and ConocoPhillips LNG Engine

  7. Slide 7: BAHX Thermal Cycles

    BAHX THERMAL CYCLES  ELNG has addressed excessive BAHX thermal gradients through:  Configuring adjacent pass to pass temperatures alarms  Configuring temperature rate of change alarms  Revising the heavy hydrocarbon removal system start-up, shutdown, and operational procedures  Improving operat

  8. Slide 8: Corrosion Under Insulation (CUI)

    CORROSION UNDER INSULATION (CUI)  CUI is external corrosion of piping and equipment underneath external insulation due water penetration that becomes trapped on the metal surface.  CUI can remain undetected until the insulation is removed to inspect or worse when leaks occur.  CUI generally occur

  9. Slide 9: Corrosion Under Insulation (CUI)

    CORROSION UNDER INSULATION (CUI)  A nice feature of the Optimized Cascade Process is that much of the cryogenic piping and equipment for the ethylene and methane refrigeration systems are contained within nitrogen purged cold boxes, which eliminates moisture and any associated CUI concerns.  Propa

  10. Slide 10: LNG Loading and 8" Cooldown Lines

    LNG LOADING AND 8” COOLDOWN LINES  The jetty loading and return lines can warm up during periods of significant downtime without some method of maintaining cold temperatures.  The options are to:  Cool down every time a shipment is required  Maintain in a cold state.  Both LNG trains at ELNG fa

  11. Slide 11: LNG Loading and 8" Cooldown Lines

    LNG LOADING AND 8” COOLDOWN LINES  The normal method to maintain the jetty loading lines in a cold state is to cool using a slip stream from the LNG Transfer Pump discharge (from each train to the jetty loading arms).  If an LNG train is offline, one of the LNG Loading Pumps may be used to maintai

  12. Slide 12: LNG Loading and 8" Cooldown Lines

    LNG LOADING AND 8” COOLDOWN LINES  The 8” cool down lines were constructed using vacuum jacketed piping, for which multiple sections have failed to maintain vacuum, which presented an area of concern.  ELNG outlined several actions to enhance the original design and ensure its reliability:  Addit

  13. Slide 13: Operational Challenges

    OPERATIONAL CHALLENGES  Operational Challenges Addressed:  Plant readiness for the offline train  Operating and maintenance team competencies  ELNG addressed those challenges by:  Developed and applied a Competency Assurance Management System (CAMS) maintain staff competency  Operator Training

  14. Slide 14: Operational Challenges

    OPERATIONAL CHALLENGES  Insufficient feed gas to sustain both trains at 13 to 15% of design feed gas rates.  ELNG adopted a philosophy of maintaining one (1) train in operation at high turndown and the other train offline, switching between trains every two (2) months.  The online train provided

  15. Slide 15: Accomplishments

    ACCOMPLISHMENTS  Strategic Targets:  Minimize excessive thermal cycling  Minimize CUI concerns.  Applicability:  Maintain cold conditions and operating levels within the cold boxes for long periods  Ability to easily and rapidly restart the Optimized Cascade process  Results:  Integrity of b

  16. Slide 16: Commercial Considerations

    COMMERCIAL CONSIDERATIONS  Turndown between 13 and 15% of design feed gas rates from mid-2013 to mid-2018 provided the following commercial results  705 on-stream days  3.1 MM cubic meters of LNG production  21 LNG cargoes (equivalent of approximately $354 MM)  Full operational and maintenance

  17. Slide 17: Wrap Up: Questions?

    WRAP UP Questions ? 9/16/2019 17

  18. Slide 18: 9/16/2019

    9/16/2019 18

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