(183d) LNG SMART™ Vaporization Process

The regasification of Liquefied Natural Gas (LNG) from its liquefied state is an energy intensive process, raising the temperature of the cryogenic product by heat exchange from an approximate -260°F to ambient temperatures. The vaporization process requires abundant heat input for regasifying LNG, and currently the Submerged Combustion Vaporizer (SCV) is the conventional technology used on all existing U.S. LNG facilities.

Mustang's Midstream Group has developed the LNG Smart? air exchange vaporization process (patents pending) as a more cost effective and efficient means of regasifying LNG. The unique system offers:

Reduced energy consumption ? The proprietary air exchange process offers a significant reduction in fuel gas consumption, varying from 40-100%, depending on the ambient temperatures at the facility location. This results in less shrinkage of the LNG product needed to vaporize the LNG and offers potentially enormous savings for the facility's operator.

Lower air emission - With the reduction in fuel gas usage, the process reduces the emission level on the same order of magnitude as the lower fuel gas consumption. Additionally, there are certain in-plant emissions that are reduced by the process.

Reduced operating expenses (OPEX) - Substantial operating expense savings can be demonstrated using the LNG Smart? vaporization process. In a Gulf of Mexico case study based on a 1 bcf per day sendout rate facility using this technology and natural gas prices at $9 mmbtu, the cost savings with a 90% fuel gas reduction approximated $38.4 million for the year over the SCV technology. The process will also require as much as 20-25% less electrical horsepower to operate the facility, depending on the location.

Easier permitting ? The proven reduction in air emissions facilitates the permitting process. Regulatory approvals from FERC and local authorities should be expedited because of the improved environmental conditions offered by this technology.

Standard components ? While the LNG Smart? system and its configuration developed by Mustang is proprietary, virtually all operating components are readily available. This shortens facility construction schedules.

Fresh water byproduct ? The LNG Smart? system generates cool, fresh water as a by-product of the vaporization process. While the water can be made suitable for consumption, if the regas unit is located adjacent to a power plant, this cool water can be used to chill the plant's gas turbines inlet air or condense steam to increase its power output.

To help satisfy the global demand for natural gas and the need for viable processes to monetize associated and stranded gas, Mustang's LNG Smart? suite of technologies provide exciting solutions for the economic construction and operation of LNG facilities, both onshore and offshore.