Technologies to Optimize China’s Shale Gas Product

TechnologiestoOptimizeChina’sShaleGasProductionUOP5887-1AerospaceAutomation&ControlSolutionsHoneywell’sBusinesses$36.5billioninrevenuesin2011,50%outsideofU.S.Nearly130,000employeesoperatingin100countriesMorristown,NJglobalcorporateheadquartersPerformanceMaterials&TechnologiesTransportationSystemsUOP5887-2EnergyEfficiencyMorethan50%ofHoneywell’sportfoliooffersenergyefficiencybenefitsByimmediatelyandcomprehensivelyadoptingexistingHoneywellproducts,theUnitedStatescouldreduceenergyconsumptionby20to25percentAirTrafficModernizationGreenBuildingsFuelEfficiencyEnergyEfficiency,DemandResponse,&SmartGridBiofuelsReducedEmissionsIndustrialProcessEfficiencyEnergyPerformanceContractsUOP5887-3UOPCompanyProfileServingtheRefining,Petrochemical&GasProcessingIndustriesProfileBusinessUnits:GasProcessingandHydrogen(GP&H)ProcessTechnology&Equipment(PT&E)Catalysts,Adsorbents&Specialties(CA&S)RenewableEnergyandChemicals(RE&C)Offering:Licensing12%Services12%Sales:BreakdownEquipment25%GlobalCustomersGlobalFootprintProducts51%DiverseOfferingSales:GeographicTechnology,Catalyst&ServicestotheRefining,PetrochemicalandGasProcessingIndustriesSupplierofmolecularsieveadsorbentstoprocessandmanufacturingindustriesSignificantTechnologyPositionUOPFacilities-WWHQ:DesPlaines,Illinois(suburbanChicago)Employees:3500+19Offices16Countries12ManufacturingFacilities5EngineeringCentersUOPOfficesUOPManufacturingsitesUOP5887-4UOPProjectCyclePlanning&ConsultingStudiesEngineeringServicesBasicEngineeringDesignAdvancedProcessControlEquipment–ModularConstruction–160projectssince1987TechnologyDeliveryModularEquipmentand/orLicensedProcessesCatalyst,Adsorbent,ChemicalsTrainingStart-upAssistanceOngoingServices&InspectionUOPdeliverstotaltechnologysolutionsviaUOP5887-5GlobalGasSupplyandDemandStrongEuropeandemandStrongdemandgrowthacrossAsiaAbundantShaleSupplyNorthAmericaremainsseparatefromglobalmarkets–butexportLiquefactionSupplySurgeSignificantResourcesprojectsgainingincredibilitySouthAmerica–ImportsrampingupagainJapanesecrisis–strongincrementalLNGdemandLargeGasReservesReadyforHarvest•Technicallyrecoverableshalegasreservesestimatedat1,275TCF(sourceEIA)•Totalunconventionalrecoverablegasreservesestimatedat1,700TCF(IEA)•NeartermplaninChina–by2015:establish7TCFrecoverableshalegasoutof22TCFprovenshalegasreservesChinabuildinginfrastructuretodevelopgasreservesUOP5887-6ChinaGasTreatingChallengesShalegasqualitynotwelldefinedLeangasprocessingmaydifferfromrichgasprocessingHighlyflexiblesolutionsdesiredInnovativetechnicalsolutionstolowerthecostofproductionContaminantcontrolmaybeneededforlowlevelsofH2SUOP5887-7NaturalGasValueChainExtractionUOPGasCleanupTechnologyProcessingAcidGases(H2S,CO2)Separex™MembraneSystemsTransportationPipeline&LNGStorageDistributionAmineGuard™FSProcessSelexol™ProcessWater&MercuryMOLSIV™&AdsorbentsNaturalGasLiquidsTwister®SupersonicSeparatorOrtloffProcessesUOPhasCleanupSolutionsforAllConditionsUOP5887-8200920041stintegratedLNGcomplexbasedonUOPfeedpretreatingtechnologyUOPacquiresrightstoAmineGuardTMFS&SelexolTMprocesstechnologyFEEDforFLNG20112012UOPCompanyHistoryfromGasProcessingPerspectiveTwister®SeparatorsUOPFounded1914UOPSeparex™membranesystemforTupiFPSO1949JointventurebetweenUnionCarbideCAPSdivisionandUOP19881994UOPbeginstoofferSeparexmembranesystemsUnionCarbidedevelopsMOLSIV™adsorbents1998IndustryLeaderforProvenTechnology;ContinualInvestmentinFutureTechnologyUOP5887-9UOPSeparexTMMembraneSystemsUOP5887-10CommercialExperienceInstallationTypeNo.ofUnitsNaturalGas52EnhancedOilRecovery(EOR)5Hybrids5Offshore7+12LandfillGas7DigesterGas1H2Purification94Total170UOP5598G-11LocationMMSCFDCO2RemovalPretreatmentStagesPakistan5006.5%-2%MG2Pakistan20012%-3%MG2Mexico12070%-5%MG2Egypt107+2186.7%-3%Std2Egypt2349%-3%Std2Spain9805%-2.5%Std1LargeOnshoreSeparexProjectsLocationMMSCFDCO2RemovalPretreatmentStagesThailand3250%-20%MG1Malaysia68044%-8%MG2Thailand58040%-23%MG1FPSOThailand1128%-3%J-T1Thailand48035%-23%MG11FPSOBrazil17625%-5%J-T22FPSOBrazil17635%-5%J-T1OffshoreSeparexProjects12StartupJune2011Startup2012AntrimShaleGas–ProjectHistoryQuicksilverResourcesInc.–(formerlyMercuryExploration)1993–ChoseaSeparexMembranesystemforCO2removalattheWildernessPlantnearGaylord,MIWhy?–Capitalcostsappearedtobesimilar–Operatingcostsappearedtobesimilar–Installationinphaseswithdelayedinvestment•1993•1994•1995Plant1Plant2Plant315MMSCFD15MMSCFD15MMSCFDUOP5887-14CO2-Mole%DesignFeedCO2Level8AntrimShaleGas1614Inlet121019951996199820002002200420062008201064Outlet2-FeedCO2hassteadilyincreasedProductGasCO2hasremainedonspecificationUOP5887-15AntrimShaleGas2006–RealityCheckOperatingCostsMembranePlantESTIMATEDMembranePlantACTUALto1995MembranePlantACTUALto2006Cost($/MSCF)0.1310.1110.095•SimplebackcalculationgivescostsavingsoftheMembranePlant(0.131-0.095)x45,000x365x0.998=$590,117/yearUOP5887-16PercentofInitialFill30%Avg.ReplacementRate-2006ReviewAntrimShaleGas40%DesignEvaluationAvg.ReplacementRate-2010Update20%10%0%199419961998200020022004200620082010Year•AverageReplacementRate–lessthan11%/yr•LongMembr