The Small Gas-To-Liquid (SGTL) JIP is a Joint Industry Project on small GTL Technologies. It focuses on the exploitation of upstream associated gas through Gas-To-Liquid processes. Indeed, new SGTL technologies and an oil-to-natural gas spot price ratio at historical high records are pushing toward monetization of natural gas - whereas associated gas or small remote fields - on the oil products market. In addition the exploitation of new fields where associated gas cannot be re-injected into the ground creates new opportunities for SGTL technology providers

1. SmallGTL JIP
International Joint Industry Project
Image’s copyright to its rightful owner

2. SGTL: smaller, affordable….everywhere?
Image courtesy of Apple
Source: http://lcwell.blogspot.co.uk
Image courtesy of Sasol-Chevron Image courtesy of Velocys
© Det Norske Veritas AS. All rights reserved. 2

3. JIP General Overview
Background
$57 billion worth of Natural Gas was flared in
2010
- World Flaring 134 Billion cubic meters/year
(Germany consumes about 90 Bcm/yr)
Image courtesy of IPS
- Gas / Oil arbitrage at historical high
- Remote location offshore associated gas
lacks infrastructure
Image courtesy of Velocys
© Det Norske Veritas AS. All rights reserved. 3

4. JIP General Overview
The Situation
“The challenge for gas-to-liquid technology
is not high cost, it is high risk” Dr. Dane A. Boysen ARPA US
DOE, February 2012
There is an urgent need for associated gas monetization
infrastructure
Hundreds of possible SGTL configurations with many
new SmallGTL technology providers out there each
proposing many different products
© Det Norske Veritas AS. All rights reserved. 4

5. JIP Objectives
Reduce risks related to SGTL Technology Developments Offshore
Primary focus on Offshore Associated Gas
Reduce/stop Associated Skid mounted/containerized
Gas Flaring Small GTL for FPSO and offshore
platforms
Exploit Remote Gas
fields
Image courtesy of Velocys
The offshore sector can manage high risk
technologies portfolio with a dedicated risk based
approach
© Det Norske Veritas AS. All rights reserved. 5

6. Example of JIP Structure
Leading Partners
Offshore
Structure SGTL Supplier
Supplier
Partners
Classification
Participants
Society
Group I:
Suppliers, Consultants, Learning
EPC & Regulatory Bodies,
Company Research Institutes & Universities
Group II:
Topsides
Oil & Gas Companies
Engineering
and Ship Owners
Company
Group III:
Operator Governmental Bodies,
National Institutes, Banks, etc
6
© Det Norske Veritas AS. All rights reserved.

7. Objectives
BEST SGTL CONCEPT SELECTION REPORT
based on:
 State of the Art SGTL Technology Review
 Economic Model
 Economics of modular SGTL
 Risk Based approach to Technology Assessment
 Identification of show-stoppers: technical, safety and environment
© Det Norske Veritas AS. All rights reserved. 7

8. Technology Concept Improvement
PREFERRED SGTL PROCESS CONFIGURATION based on:
 Suitability for Offshore Environment
 Safety and environmental study
 Ease of containerization & modularization
 SGTL conversion efficiency
 Ease of associated gas volume production adaptability
 Topsides systems integration
 SGTL modules moving infrastructures
(planes, cranes, ships, trailers etc)
© Det Norske Veritas AS. All rights reserved. 8

9. Proposed JIP schedule
© Det Norske Veritas AS. All rights reserved. 9

10. Proposal of Property map
Leading Partners Working Information JIP Work Product
Drawings, Calculations, Philosophies, Set of basic documents delivered to
etc, within this segment, will belong to the Partners to summarise project
the originating company or companies. results.
However, can be used within the Leading
Partners in a confidentiality basis
Know-How of Leading Partners Companies
• Belongs to the originating companies. Its
disclosure will be limited to what is necessary
to develop the project
• In general, this information is protected by
patent rights and is derived from the
Public Disclosures
companies experience
of JIP Work
• The cost of developing this information, will Product for
not be charged into the Project account Marketing
Purposes
© Det Norske Veritas AS. All rights reserved. 10

11. Participant Fees Estimates (2 Phases)
Or work in kind
Group I: €20,000 x 2
Suppliers, Consultants, Learning
Image courtesy of Nowatec
& Regulatory Bodies,
Research Institutes & Universities
Group II: €40,000 x 2
Oil & Gas Companies
and Ship Owners
Group III: €40,000 x 2
Governmental Bodies,
National Institutes, Banks, etc
© Det Norske Veritas AS. All rights reserved. 11

12. Interested ? Contact DNV:
Selim Stahl
Senior Risk Specialist
Structures, Pipeline & Risk
Email: selim.stahl@dnv.com
Mobile: +45 60 35 15 76
© Det Norske Veritas AS. All rights reserved. 12

13. Safeguarding life, property
and the environment
www.dnv.com
© Det Norske Veritas AS. All rights reserved. 13