Improving the LNG Value Chain

1. Improving the LNG Value Chain ABB in the LNG business

2. Content • ABB in LNG • Predictable multi-scope supplier • Life-Cycle supplier • Improving the LNG Value Chain • FEED • Engineering • Construction • Installation • Operation • Asset Performance Improvements

3. ABB in LNG • ABB has been involved in the LNG industry since its early growths. • ABB is a market leader in the biggest LNG market in the world. • ABB has LNG references across the globe and the LNG Value Chain. • ABB has a wide experience on a full range of natural gas installations: • Gas Production • Gas Processing • Gas Pipelines • Gas Distribution • Marine Terminals • LNG Liquefaction • LNG Shipping • LNG Regasification • Power Generation • FPSO

4. FEED Engineering Construction Installation Operation Asset PerformanceImprovements ABB is a LNG multi scope supplier Liquefaction Shipping Regasification I & C Electro • Improving the ROCE through: • Disciplined project execution • Safety focus • Scope leadership positions • Life cycle capabilities Drives Motors Analyzers xxx

5. Liquefaction Shipping Regasification ABB in the LNG Business ABB improves the LNG value chain: Control System Safety System Simulator Inform. Mngmt Asset Mngmt Term. Mngmt Vessel Mngmt Turbine Control Compressor ctrl. Metering Instruments and Analytics Power Management Power Grid Connection Power Distribution Power Generation HV/LV Switchboards MV/LV Motors & Drives Transformers HVDC Solutions UPS Total Solutions System Integration Turn-key capability Networking Transmission Systems Radio Systems Safety Systems Surveillance Systems Control Systems ABB has extensive competence and experience in delivery of multi-scope solutions that includes: - Integrated Process automation solutions - Integrated Electrical solutions including Power Mngmt. systems - Full Telecom packages seamlessly linked to the automation systems - ECIT discipline engineering and construction of plants Life-cycle Services Telecom Process Automation Electrical Total Solutions Project Services: - Studies - Conceptual Design - Project Mngmt - Engineering - Installation - Commissioning Customer Support: - Global Call Centers - Training - 24 hours service

6. Disciplined project execution • Interface Matrix • Deliverables and responsibilities • Project Management • Execution and Follow-up • Continuous Improvements • Knowledge Management • Key Performance Indicators

7. Liquefaction Shipping Regasification Disciplined project execution • Interface Matrix • ABB’s multi-scope capability reduces the complexity.

8. Liquefaction Shipping Regasification EPC EPC EPC EPC EPC EPC EPC EPC EPC I & C I & C I & C I & C I & C I & C I & C I & C I & C 3PS 3PS 3PS 3PS 3PS 3PS 3PS 3PS 3PS EPC Elec. 3PS Multi supplier approach Programming&Structuring Testing Installation MechanicalCompletion Commis-sioning Gen. System &Layout Eng. AdditionalDocuments Products &Applications SystemEngineering Project phases I & C Electro EPC EPC EPC EPC EPC EPC EPC EPC Elec. 3PS Elec. 3PS Elec. 3PS Elec. 3PS Elec. 3PS Elec. 3PS Elec. 3PS Elec. 3PS Drives EPC EPC EPC EPC EPC EPC EPC EPC EPC Drive 3PS Drive 3PS Drive 3PS Drive 3PS Drive 3PS Drive 3PS Drive 3PS Drive 3PS Drive 3PS Motors EPC EPC EPC EPC EPC EPC EPC EPC EPC Motor 3PS Motor 3PS Motor 3PS Motor 3PS Motor 3PS Motor 3PS Motor 3PS Motor 3PS Motor 3PS Analyzers EPC EPC EPC EPC EPC EPC EPC EPC EPC Ana. 3PS Ana. 3PS Ana. 3PS Ana. 3PS Ana. 3PS Ana. 3PS Ana. 3PS Ana. 3PS Ana. 3PS xxx EPC EPC EPC EPC EPC EPC EPC EPC EPC xxx 3PS xxx 3PS xxx 3PS xxx 3PS xxx 3PS xxx 3PS xxx 3PS xxx 3PS xxx 3PS Potential Cost Overruns related to interface management! NB! 3PS = 3rd Party Supplier

9. Liquefaction Shipping Regasification ABB EPC ABB EPC ABB EPC ABB ABB ABB EPC ABB ABB EPC EPC ABB EPC ABB EPC EPC ABB ABB ABB EPC ABB ABB EPC ABB ABB ABB EPC ABB EPC ABB EPC ABB EPC ABB EPC EPC EPC ABB EPC ABB EPC ABB EPC ABB ABB ABB EPC EPC EPC EPC EPC EPC ABB EPC ABB EPC ABB ABB ABB EPC ABB EPC ABB EPC EPC EPC ABB EPC ABB EPC ABB EPC ABB EPC ABB EPC ABB ABB EPC ABB ABB EPC ABB EPC EPC EPC ABB EPC ABB EPC ABB EPC ABB EPC ABB EPC ABB EPC ABB ABB EPC ABB EPC EPC EPC The ABB Multi scope approach Programming&Structuring Testing Installation MechanicalCompletion Commis-sioning Gen. System &Layout Eng. AdditionalDocuments Products &Applications SystemEngineering Project phases I & C Electro Drives Motors Analyzers xxx Disciplined interface management!

10. Disciplined project execution • Project Management • Project Handbook • Work processes • Responsibility Matrix • Documentation • STECO • Finance and activity statuses

11. Disciplined project execution • Continuous Improvements • Knowledge Management • Key Performance Indicators • Project Satisfaction • Operation & Maintenance Source: Frame Agreement with Norsk Hydro

12. At ABB, it’s always Safety First! • ABB protect people, property, environment and profit by • Proper front-end, hazard and risk, and safety requirement analysis • Designing safety systems that meet customer needs and standards • Professional project management & execution • Delivering fully engineered safety systems and functional safety management, standalone and integrated with DCS • Providing support for installation, commissioning and operations • Providing customized service agreements • ABB provide life cycle safety capability in line with IEC 61508 and 61511

13. Sustainability • ABB’s products and services are designed to improve the performance of industry customers but, at the same time, ensure environmental impact is minimized. • The reduction of harmful emissions and the development of alternative energy products are just two ways in which ABB is working to improve the environment.

14. Project Management Studies Interface Packages Subcontracting Financing Maintenance Services After Sales Services Instrumentation & Metering DCS SCADA Information Management System ESD System Fire & Gas System Advanced Control Products Advanced Control Solutions Asset Management Simulator Solutions Analytic Equipment Telecommunications Switchgears LV/MV/HV Power Distribution Control System Power Management System Sub Sea Control System Motors & Drives Power Distribution Power Transformers UPS Large Compressor Drives and Compressor Control Solutions Gas and Steam Turbine Solutions A wide range of products, solutions and services

15. Project Management Studies (Electrical Network) Interface Packages Subcontracting Financing Maintenance Services After Sales Services Instrumentation DCS SCADA Information Management System ESD System Fire & Gas System Advanced Control Products Advanced Control Solutions Asset Management Simulator Solutions Analytic Equipment Telecommunications Switchgears LV/MV/HV Power Distribution Control System Power Management System Sub Sea Control System Motors & Drives Power Distribution Power Transformers UPS Large Compressor Drives and Compressor Control Solutions Gas and Steam Turbine Solutions Hammerfest Status: July 2004 A multi-scope LNG project reference

16. A wide spectra of global services • Customized service agreements, for on-site and remote services • Performance & Consultancy Services, including audits, tuning and optimization • Multi-site Contractors Management • Asset Management Services • Customer Support • Parts & Repair • Training • Global Call Centers • Global Service Oil & Gas • Full Service

17. Life-Cycle Supplier • ABB has the technology, products, solutions and services as well as the competencies and capabilities to serve customers from FEED stage till the plant shall no longer be operational. Liquefaction Shipping Regasification Improving the LNG Value Chain FEED Engineering Construction Installation Operation Asset PerformanceImprovements

18. Improving the LNG Value Chain • Improving CAPEX • Safety & Quality • Multi-scope project execution • Partnership • Integrated automation & electrification • Improving OPEX • Fixed costs • Variable costs • Improving Revenue • Down time • Capacity constraints

19. Improving CAPEX • Safety & Quality • Best in Class’ products meet ISO9000 and ISO14000 quality standards. • Reliability proven at hundreds of onshore and offshore applications world-wide. • ABB factory quality consistently meets quality standards independent of location of manufacturing. • Provide a quality program that seamlessly integrates Clients’ Project Quality metrics into the project. • Proven, described and approved project execution model. Provide a safety program that seamlessly integrates Clients’ Project Safety metrics into the project. • Regular safety review according to applied HES policies • Pre-trained people certified according to Offshore and Marine safety courses will participate in site-activities. • Optional 3rd party approval (ABS, DNV..).

20. Improving CAPEX • Multi-scope project execution • We can offer professional project management and delivery of integrated solutions • Reduce cost overruns related to project interface management • Lower procurement costs • Risk offloading • Global project execution and services capabilities • Quick local decision making leading to accurate decision making driven by project time line • ABB assume full responsibility and liability for our scope

21. Improving CAPEX • Partnership • Lower procurement costs. • We can offer Open Book approach with discount schemes and incentives based on additional savings. • Incentive scheme liability – if failed due to ABB performance problems. • Experience in managing complex Framework agreements which last over several years. • KPI measurements

22. Improving CAPEX • Integrated automation & electrification • Meet deadlines with proven products and solutions (IndustrialIT). • Standardized and seamless • Reduce the cost of the automation & electrical solutions • Fully integrated automation and electrical solutions. • Optimally designed automation and electrical solutions.

23. Improving OPEX • Fixed costs • E-Operation • Effective and Efficient Asset Management • Increased automation level to support remote operations and maintenance • Ease of operation and maintenance

24. Improving OPEX • Variable costs • Decreased energy consumption • Secure sustainable operations by meeting Health, Safety and Environmental standards • Reduced spare parts and training costs • We can reduce fuel consumption and emissions by integrated power, energy & emission management solutions • Warranty can be linked to operational performance

25. Improving REVENUE • Down time • Increased availability/asset utilization • We can increase the uptime of the facility by reducing shut-downs and offering global, 24h support … • We have operations in some 40 countries, and provide 24-hours support globally

26. Improving REVENUE • Capacity constraints • Well tuned and optimized automation system • Optimized production & quality • We can stabilize and increase the facility throughput by advanced control thus operating closer to facility constraints • We can optimize the production by meeting specified product quality targets

27. Plant system audits and tuning Service Agreement Value Added Performance Reconditioning Services Major Minor Failure Availability Failure Services Time Engineering Commissioning Life of Installation FEED Consistently adding values Improving the LNG Value Chain

28. Typical project cost overruns can be avoided by improved scope interface definitions. ABB’s multi-scope capability reduces number of interfaces with responsibility shifts. ABB offers a well integrated E&I system based on the IndustrialIT portfolio of products and solutions. ABB offers design study services for improved investment analysis. ABB’s Life-cycle simulator products can be used in FEED analysis. Reference example Norway: ABB’s simulator products are used in the LNG Hammerfest project ABB are responsible for interface packages to external systems (Hammerfest). ABB has performed electrical network analyses (Hammerfest). FEED Photo: Statoil

29. Predictable deliveries minimizes risk for Take-or-pay and Send-or-pay penalties. ABB’s multi-scope capability and the IndustrialIT portfolio of well integrated products and solutions eliminates integration problems. Efficient and reliable engineering with the IndustrialIT bulk data manager supporting Excel data import. ABB’s Life-cycle simulator products can be used in the engineering phase to verify applications prior commissioning. Reference examples: Influence simulation during basic engineering; valve positions & equipment statuses in regasification terminals (Japan). ABB delivers an integrated telecom package to Sakhalin I. ABB delivers the complete power distribution system to Sakhalin II. Engineering

30. Examples of ABB products, solutions and services Tools for on-line analysis of control system signals as well as local controller simulation. Improves test efficiency. Well simulated applications add predictability to the construction phase. Electrification Verify integration between electrical and process control system at factory. Reference example: ABB delivers a power management system that manages three plants in Malaysia. ABB has delivered safety systems to several LNG plants across the globe. ABB has delivered analyzer houses to several LNG plants across the globe. Construction

31. ABB has long experience from Greenfield and Brownfield installations. Examples of ABB products, solutions and services Plant on-line upgrades Integrated telecom package Reduces wiring and marshalling tests. Fieldbus management for FF, HART and Profibus Reference example Japan: Upgrade of existing control system without interruption of gas transport to nearby gas power plant. Reference example Italy: Upgrade of existing safety equipment, including dismounting, installation and commissioning. Installation

32. Increased return on assets IndustrialIT Asset optimization integrates seamlessly with CMMS*) systems such as e.g. Maximo and SAP IndustrialIT Extended Automation System 800xA Reduced time to decision and action Integrating information for improved visibility Collaborative production management Operations Monitoring Production Accounting Event Monitoring (incident analysis) Site Audit services Operator training Reduced down time Regasification examples: Roll-over monitoring Reception of LNG with different gravities (many sources) creates layers in tanks with different temperatures causing BOG generation with rapid pressure increase. Pre-alarm information to the operator allows for initiation of mixing operation. Plant Monitoring Calculate and display plant margins Scheduling of LNG reception based on tank level and power balance. Operation *) CMMS – Computerized Maintenance Management Software

33. E-Operation Company Expert Resource Center Broad-band Connection Onshore OperationCenter Advanced Control and Optimization tools Supplier SupportCenter

34. Optimizing plant asset availability and performance ABB offers Plant Safety Audits Plant Performance Benchmarking The OptimizeIT portfolio: Predict and Control (P&C) Inferential Modelling Platform (IMP) Loop Performance Monitor (LPM) IndustrialIT Performance Monitoring Power Management System E.g. to prioritize which pump(s) to run Application example Performance monitoring Pumps - Energy consumption Compressor Maps - Actual versus expected performance Asset Performance Improvement

35. Excellence across the LNG Value Chain Liquefaction Drives & LCI Analyzers Niche LNG FEED Engineering Construction Shipping Installation AssetPerformanceImprovements Operation Switchgear Regasification

36. Excellence across the value chain • Disciplined project execution • Safety focus • Scope leadership positions • Life cycle capabilities Improving the LNG Value Chain

38. Work process example

39. Responsibility Matrix

40. Document Management

41. Financial follow-up

42. KPI Customer Satisfaction • Project Satisfaction • Consistently used during project execution. • Monitors different project phases and expectations in four relations: • Customer eval. Supplier • Supplier eval. Customer • Contractor eval. Supplier • Supplier eval. Contractor • Operation & Maintenance • Consistently used to monitor satisfaction level related to operation & maintenance services. Excellence requires monitoring and tuning of all interfaces!