integrated solutions for the gas value chain

2015 Honeywell Users Group

Europe, Middle East and Africa

Integrated Solutions for the Gas Value Chain

Martin Bragg, Honeywell

2 © 2015 Honeywell International All Rights Reserved

Fastest Growing Fossil Fuel Globally at 1.7% per year 2010 - 2040

Natural Gas Energy Consumption at 23% of World Demand 2040

56% World energy

consumption growth

World increase

in supply 65%

Industrial & Electrical

Power sectors project

increases

1 Btu

77%

Energy release

from burning a

Wooden Match

16.7+ Trillion Cubic Feet

of SHALE GAS

representing 50%

of total USA

production

$4.00

≥ 50%

mmBtu

in 2014

Industrial Sector

largest share delivered

energy consumption

$10.00+ By 2035 the GAS

PRICE shall have

grown significantly

Natural Gas continues to be

favored as an Environmentally

attractive fuel

820 Quadrillion Btu of

Gas

The Gas Industry


Fastest Growing Hydrocarbon

Increasing Demand for Natural Gas

29 24

31 26

21

24

5 7

2 3

11 16

0

10

20

30

40

50

60

70

80

90

100

2012 2040

% S

ha

re o

f P

rim

ary

En

erg

y b

y S

ou

rce

Renewables

Hydro

Nuclear

Gas

Oil

Coal

(121 TCF)

(188 TCF)

Total: 568 TC 777 TCF

Source: IEA 2014 WEO New Policies Report

OT

HE

R

• 2.2% global growth – faster than other hydrocarbon

• Energy Security: Supply more regionally distributed than oil

• Gas produces: ‒ Lower greenhouse gas emissions

‒ Lower NOx, SOx

‒ Lower particulates

‒ Lower Capex to meet Emissions

• LNG opening up global trade

Global Energy Demand


Integrated Solutions


With 150 Years Experience in the Gas Industry, Honeywell Provides:

Accurate Custody Transfer & Single Source Partner for Gas Value Chain

Did You Know?

25,000+ Wireless Cellular Pulse

data loggers operating

every day

100+ CNG Stations

20,000+ Wireless Cellular

Gas Pressure recorders

installed in North America

Top 100 Gas distribution

companies rely on

Honeywell

500,000+ Electronic Correctors

1000+ Gas CV Analyzers

18,000+ Regulating units for

gas-driven

combustible engines

30,000+ Flowmeters


Natural Gas Value Chain

Measurement SCADA Wireless Measurement

Safety Instrumented Systems

Security, Surveillance, Access Control

Pressure Reduction Metering Distributed

Control System Fire & Gas Systems

Simulation, Optimization, ERP Software

Coal Bed Methane

FPSO & Offshore

Conventional Gas

Tight Gas

Shale Gas

LNG

Liquefaction

Gas Processing

Industrial Plants

LNG Terminal: downloading storage,

re-gasification

Underground Storage

City Gate Station

Power Plant

Gas

D

istr

ibu

tio

n

Commercial User

Residential User

Pipeline Transmission

Industrial User

Power Plant

Gathering

Comprehensive solution portfolio across NG industries


Natural Gas Operator Segments: Independent Producer

Coal Bed Methane

FPSO & Offshore

Conventional Gas

Tight Gas

Shale Gas

LNG

Liquefaction

Gas Processing

Industrial Plants


re-gasification

Underground Storage

City Gate Station

Power Plant

Gas

D

istr

ibu

tio

n

Commercial User

Residential User


Industrial User

Power Plant

Gathering

Independent Producer: North America “Focused on returns, more than on production growth … standardisation and efficiency”

John Christmann Apache CEO

• 2014 – 50,000 new wells in NA, 1M in operation

• Most shale plays marginally profitable at $50 to $60 WTI

• NA vs global – fragmented / NOC, variation in well type

Global best practices:

Standardisation Modularisation Process Integration


Honeywell RTU2020: Perfect Vision

75° 70°

Perfect 20/20 Vision with RTU2020


Introducing RTU2020 ………Ready-To-Use

Low Cost Complete Wellhead Solution

World Class High Volume Factory

ISO 9001 Quality

Easy to Deploy

Rapid Time to First Production

Standardized Skid Solutions – Simplifying Business & Improving Returns


Photo from: gastoday.com.au

Battery Enclosure

Pump Set Separator

Wellhead

Solar Panel Radio

Antenna

RTU Enclosure

Surface instruments

Sub-surface instruments

Co

al S

ea

m G

as

We

llh

ea

d

Ready-To-Use: At the Wellhead

Easy to Integrate to Equipment & SCADA ¦ And Quick to Install


Wellhead Process Skid Concept

Suitable for Large Volume Standard Deployment

• Approx. 12M (40ft) container dimensions

with 6M (20ft) and larger options

• All process piping

• All instrumentation

• Process units – separator,

generator/HPU, Pumps, etc

• Control equipment – RTU panels etc

• Fully tested offsite, ready to install

• Optimised with UOP know-how

• Fast to install and re-deployable


Natural Gas Operator Segments: Midstream Operator

Coal Bed Methane

FPSO & Offshore

Conventional Gas

Tight Gas

Shale Gas

LNG

Liquefaction

Gas Processing

Industrial Plants


re-gasification

Underground Storage

City Gate Station

Power Plant

Gas

D

istr

ibu

tio

n

Commercial User

Residential User


Industrial User

Power Plant

Gathering

Midstream Operator: North America (may also operate long haul Pipelines)

Rapid Startup Phased Expansions Integrated Operations

• Toll or fee based service

• Profit driven by fee based volume (not price directly)

• Consolidation by top operators

NA best practices:


Evolving Operator: DCP - Turnkey Wellhead to HUB Delivery

Midstream operators integrate 10’s or 100’s of assets


Integrated Operations Pipeline SCADA (shared platform)

Process equipment (UOPR)

Operations management (OE, training)

Supply Chain (optimisation, MSE)

Simplified Expansions and Fit for purpose at every phase with DSA

phased additions Remote operations

Long life cycle support

Compressed Schedule 25% schedule reduction with LEAP

Rapid Startup Late binding changes with UIO

Rapid device commissioning

Midstream Operator

Drives Rapid Incremental Development at Each Step

Need Solution


Factory Built – not site built Better quality – standardise, pre-test Improved Change Management Automation off critical path Support one week faster startup - 30% lower installed ICSS cost

UOP Integrated Modular Gas Plants

Controller

Cabinet

HPS to Support Faster Startup and Local Capability for UOPR

Optional Prefabricated Modular Control Room with Reduced footprint

Fiber optic cables are run directly from remote cabinets to the controller cabinet without intermediate marshalling

– saves time and cost & site work

Standard Instrumentation Automatic device

commissioning for HART devices

Preconfigured displays, alarms and procedures enables rapid time to

first production and full capacity (Modular

Control Room)

HPS has presence in many remote regions around the globe to

support installation, integration with Balance of Plant and startup

Process Skid Module is pre-wired with remote universal IO

standard cabinet (URMC) in factory then shipped to site – no site eng

Online GCs

Fire and Gas Detectors

Integrated Security


Natural Gas Operator Segments: Long Haul Pipeline Operator

Coal Bed Methane

FPSO & Offshore

Conventional Gas

Tight Gas

Shale Gas

LNG

Liquefaction

Gas Processing

Industrial Plants


re-gasification

Underground Storage

City Gate Station

Power Plant

Gas

D

istr

ibu

tio

n

Commercial User

Residential User


Industrial User

Power Plant

Gathering

Trunkline Pipeline Operator: NA, International

Asset Integrity Compliance Low cost of ownership

• Huge aging installed base in US (~1 Million miles)

• Several mega long pipeline projects planned internationally

• Profit driven by transport fee based volume (not oil / gas price directly)

• ‘Stay out of the news’



Low Cost of Ownership SCADA equipment templating

Virtualisation in projects and lifecycle

Long lifecycle and committed R&D

Compliance Core evolving infrastructure

Gas application suite

Leading cyber security solutions

Asset Integrity Best in class ASM operator environment

Distill complex data into intuitive -

decisions

Long Haul Pipeline Operator

Bettering the assets ability to reach business goals

Need Solution


Understanding of Abnormal Situations

Safety Culture

Incident System

Collaboration

Participation

Metrics, Improvement

Management of Shifts/Shift work

Management Communications

Operational Communications

User Interface Design

Use of Technology

Control Centre and Human Factors

Housekeeping

Alarm Management

Qualifications of Training Staff

Coverage of Training program

Training Delivery

Using Many Opportunities for Training

Quality of the Procedure System

Process Hazard Analysis

Safe Work Permit Procedures

Abnormal Situation Management (ASM)

Best Practice Areas

API RP 1165

API RP 1165

API RP 1168

Improved compliance, safety and reliability


Pipeline Metering Solutions

MeterSuite / DCS Solution

Fiscal

Calculations

Metering

Server and

Workstation

• Metering skids

• Engineered

solutions

• Integrated

metering

Honeywell can provide significant components of the pipelines assets

Pressure reducing unit

LACT Unit Metering skids

Multiple metering skids


Natural Gas Operator Segments: Integrated Gas Operator

Coal Bed Methane

FPSO & Offshore

Conventional Gas

Tight Gas

Shale Gas

LNG

Liquefaction

Gas Processing

Industrial Plants


re-gasification

Underground Storage

City Gate Station

Power Plant

Gas

D

istr

ibu

tio

n

Commercial User

Residential User


Industrial User

Power Plant

Gathering

Integrated Gas Operator: International (excl. NA)

Rapid Startup Low TCO Integrated Value Chain

• Commonly owned by national oil companies and JV’s

• Several mega long pipeline projects planned internationally

• Integrated operations



Integrated Solution for Integrated Operation

PAS / PMC: Metering Skid

Gas Pipelines Gas Processing Gas Production

LEAP

Enabled

PAS: Well Head

in a Box

PAS with HON ACS: Security offering

with 3rd party offering

PAS / UOP: Well Site in a Box

PAS: Orion Console to

“Smart” Operations

Broad technology & solution portfolio for better integration & reduced risk

AS: Supply Chain Mgmt

PAS: Telecoms

with 3rd party


Natural Gas Value Chain

Measurement SCADA Wireless Measurement

Safety Instrumented Systems

Security, Surveillance, Access Control

Pressure Reduction Metering Distributed

Control System Fire & Gas Systems Simulation, Optimization, ERP Software

Coal Bed Methane

FPSO & Offshore

Conventional Gas

Tight Gas

Shale Gas

LNG

Liquefaction

Gas Processing

Industrial Plants


re-gasification

Underground Storage

City Gate Station

Power Plant

Gas

D

istr

ibu

tio

n

Commercial User

Residential User


Industrial User

Power Plant

Gathering

24 ICSS in USA &

Europe.

RMG strength in

metering

10 City Gas SCADA.

Mercury + RMG strength

Many ICSS in China,

Canada & Middle

East, Nth Africa

300 projects. > 50

floaters & subsea.

Fields in Australia, China &

India.

>200 Gas

Plants ICSS,

A/S and EFS

>250 pipelines

SCADA systems

18 Regas terminals.

13 FSRU/LNG-RV

100+ LNG Carriers

ICSS in 26% of

worlds Liq. trains.

Committed roadmap with long history of support


Benefits of Our Integrated Value Chain

Our global Products and Solutions are designed and engineered from our

Deep Domain Knowledge and Expertise in Leading Innovation to ensure the

Safety and Security of People and Assets with superior Efficiency and

Reliability when combined in an Integrated System that leverages Technology

and Global Resources within a Total Lifecycle approach to the Entire Value

Chain (Martin Bragg, Honeywell)

A Totally Integrated Approach