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Here are the notes in the q48 response about OSMR...

A number of LNG liquefaction technologies currently are available to proponents of
LNG projects worldwide:
1. Propane Mixed Refrigerant (C3-MR) Process – Air Products Industries
2. AP-X Process – Air Products Industries
3. Cascade Process – ConocoPhilips
4. Dual Mixed Refrigerant (DMR) Process – Shell
5. Nitrogen Expansion – Hamworthy
6. PRICO® SMR – Black & Veatch
7. OSMR® – LNG Technology

From the list above, Magnolia has determined that the OSMR® process is best suited for
the Project. The rationale for this selection is as follows:

 Technologies 1, 2, 3, and 4 in the list above are multi-cycle processes commonly used
in large-scale LNG facilities with train capacities greater than 3.5 mtpa and even up
to 8 mtpa. The tollers purchasing the LNG from Magnolia are seeking smaller
purchase quantities than that provided by the mega-trains.

 Technology 5 is simple and is often used for small-scale LNG facilities; however, it is
less efficient than the MR processes, with higher greenhouse gas emissions.

 Technology 6, the SMR process, is a very simple, single-cycle liquefaction process
that has proven itself in the LNG industry over a period of more than 35 years, but
has a low thermal efficiency (i.e., it would not deliver the same efficiency benefits,
nor the greenhouse gas emission reductions, as the OSMR® process).

 The SMR process is at the heart of the OSMR® process. The OSMR® process has
optimized the SMR process with ammonia pre-cooling, resulting in an improved
efficiency and, therefore, fewer greenhouse gas emissions than traditional LNG
processes. This is achieved by the integration of the following proven technologies:

o The selection of SMR liquefaction process as the base process, which is a very
simple process that allows enhancement;
o Use of aero-derivative gas turbines with improved efficiency, and are well-proven
in mechanical drive applications;
o Combined heat and power (CHP) technology to recover waste heat from the gas
turbines to produce a high-pressure system;
20141229-5171 FERC PDF (Unofficial) 12/29/2014 4:35:01 PMResponses to FERC’s December 9, 2014, Data Request
Docket No: CP14-347-000 Resource Report 13: Engineering and Design Material
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o Ammonia refrigeration, driven by the CHP system, to pre-cool the feed gas, precool
the MR before entering the coldbox, and cool the inlet air of the aeroderivative
gas turbines.

 The OSMR® process incorporates parallel refrigeration systems, providing very good
turndown capabilities that would be beneficial when introducing feed gas in a staged
manner. This also would enable the plant to turn down efficiently when purchaser
loads decrease by dropping parallel refrigeration units, and minimizing fuel wastage
and emissions at the lower rates. If this occurs, the turndown capacity would allow
feed gas to be introduced at 40 percent of full LNG train capacity.

 At 15 to 20 percent more efficient than other systems, ammonia is one of the most
proven and efficient refrigerants. This is the reason that Magnolia plans to use
OSMR®. Magnolia is aware of the risks associated with the use of anhydrous
ammonia and plans to take the steps outlined above. The mid-scale size of the
Magnolia LNG trains would allow a lower controllable inventory of circulating
ammonia when compared to traditional large LNG trains, thus reducing associated
risks when compared to the required ammonia inventory for large-scale LNG trains.

 Ownership by Magnolia’s parent company (LNG Limited) of the technology license
for the OSMR® process assists the viability and realization of the Project since there
is no ongoing license fee (external to Magnolia) to be paid. The development and
utilization of OSMR® has contributed to the Project’s economics.
20141229-5171 FERC PDF (Unofficial) 12/29/2014 4:35:01 PMResponses to FERC’s December 9, 2014, Data Request
Docket No: CP14-347-000 Resource Report 13: Engineering and Design Material
78

 OSMR® liquefaction technology is part of the business model for Magnolia LNG and
its parent company, LNG Limited. Each LNG train is comprised of five integrated
modules that have been carefully designed to enable self-propelled, modular
transporters to position the modules into place. This template design results in a plant
cost that is approximately half the cost of competing technologies. In addition, this
technology offers lower operating costs due to improved efficiency, shorter
construction timeframes, simple and reliable operation, and reduced emissions, as
previously discussed.

The improved efficiency and simplicity of the OSMR® process allows the capital cost
and operating cost of the LNG facility to be competitive, which is essential for the feasible
development of any LNG project. Magnolia believes the OSMR® process is the optimal
selection for the proposed Project. OSMR® is aligned with the Project attributes of gas supply
and train capacity, while sustaining Project targets relating to economics, environment, operation,
and safety.