What is the role of LNG in the Energy Transition and how do you expect it to evolve?

Alain Poincheval (AP): LNG is the process of compressing natural gas at high pressure and low temperature into liquid form to make it transportable, anywhere around the world. Rich in hydrogen, with a lower carbon content than oil or coal, LNG can be used to displace more CO2 intensive fossil fuels for power generation and other industrial applications. Progressively, LNG will be displaced by cleaner energy, as renewable energy capacity ramps up and energy storage solutions are developed. In this way it can be seen as a transition energy. But in the meantime, we expect it to grow by a further 25% of current capacity (or 140 mtpa) by 2035.

LNG represents close to half of the international trade in natural gas, and around 12% of the global energy mix. With an estimated installed global capacity of 550 million tonnes per annum (mtpa) it is forecast to reach 690 mtpa by 2035. Demand is being driven by the flexibility of LNG to replace oil and coal as fuel sources and reduce emissions, most notably for power generation.

The LNG infrastructure and natural gas grids provide another advantage. They can easily be adapted to support biomethane, to export liquified CO2, or import hydrogen rich fuels such as ammonia or liquid hydrogen. Technip Energies Loading Systems business has continually evolved to support the transfer needs of LNG, floating LNG (FLNG) as well as other liquified gases.

Technip Energies is a pioneer in modularization. Can you explain this in the context of LNG?

AP: For any project development, there is constant pressure to lower the cost per tonne. There are two main factors which influence this: the project location and the cost of feedstock. This is why projects are typically located as close to the feed source as possible. But some locations such as Yamal, where winter temperatures are below -40°C or Qatar, where temperatures are often above 40°C make local construction very challenging. And project costs for offshore gas fields are also much higher, often making them uneconomic.

The answer is modularization. For the construction of our LNG modules we maintain close relations with selected construction yards in Asia and elsewhere, with each module transportable by sea anywhere in the world.

In this way, we benefit from a very skilled and experienced workforce, and we are competitive.

Modularization enables us to de-risk project execution of LNG trains and provides greater certainty with respect to costs and schedules. We have successfully delivered modularized LNG and FLNG facilities including Yamal LNG, which was assembled from 142 prefabricated modules in Asia, the Petronas FLNG Satu project in Malaysia and the giant Prelude FLNG in Australia.

What is the key to successful project delivery, on time and on budget?

AP: There are three key factors to success. The first is our experience. We make the right estimation in terms of time and cost, we have a rigorous project framework, we know what we can deliver, and we are realistic. This enables us to win the project.

The next important factor is teamwork, having the right team, with the right skills, tackling the right topics. From the very start of the project, we formalize the execution plan, coordinate procedures and organization and establish overall project controls. Everyone knows how to work. As a project manager, it s about leadership, fostering a collaborative mindset; being flexible and agile to make sure things are happening, and motivating people to outperform and make a difference.

And above all, it s about having transparent collaboration with partners. Working in collaborative mode with partners, sharing information and working together to reach solutions is a win-win approach.

What do you consider to be the key achievements of Technip Energies in 2021? And what are your expectations for 2022?

AP: Despite the challenging context due to the Covid-19 pandemic and supply chain disruptions, we have been able to deliver on our promises. The market supports our strategy and clearly sees us as

a company able to lead the Energy Transition. From a project delivery standpoint, I have to highlight the successful sail-away of Coral Sul FLNG just before Christmas, and I am looking forward to the sail-away of Arctic LNG in August 2022.

We have secured over 150 energy transition contracts in 2021, across our four energy transition domains, LNG, Sustainable chemistry, Decarbonization and Carbon-free energy solution. This is an increase of 45% compared to 2020 and I expect that this momentum will continue in 2022.

As a leader in LNG plant design and construction, having developed 20% of the world s capacity, we are on a perpetual quest to reduce greenhouse gas emissions from LNG and this is unique. There is a route within gas to be premium, low-carbon and this is what we offer.

4 ongoing contracts equivalent to 60 million tonnes of LNG

50+ year track record

7.8 Mtpa (million tonnes per annum) World s largest LNG trains delivered

>20% of operating LNG capacity built by Technip Energies

Technip Energies Sustainability Report 2021 . 37