Paul, 

Hope you can make the meeting.

Regards
James

 -----Original Appointment-----
From: 	McMillan, James  
Sent:	Monday, July 23, 2001 1:06 PM
To:	Arnell, Doug; Webber, Les; Groves, Eric; Kaiser, Jared; Crook, Jody; Grant, Neill; Glessner, David
Cc:	Cullen, John
Subject:	LPG Extraction at Bahamas LNG Terminal
When:	Tuesday, July 24, 2001 10:00 AM-11:00 AM (GMT-06:00) Central Time (US & Canada).
Where:	18C-3

Requests for Quotation for the Bahamas LNG Terminal are currently out, which do not include any provision for BTU control at the terminal. EEOS have been requested to come up with a preliminary design and cost estimate for removing C3+ from various LNG's delivered at the Bahamas LNG Terminal.  Before we instruct the bidding contractors regarding the potential LPG extraction facilities, we need to have a consensus internally regarding how to proceed.  Issues include:

-  Ethane Extraction: Some gas users have indicated that C2 concentrations above 5% cause an opacity problem for them.
   Ethane extraction at the Bahamas Terminal greatly increases the capital costs.  Do we design for this case, or proceed 
   without Ethane extraction with the assumption that customer concerns can be addressed by education or other means?
-  Abu Dabhi LNG: This source has the highest C2 content of all possible LNG Sources, and would require ethane extraction 
   to get the HHV value of the gas below 1100 BTU/SCF. In light of our recent Project Dolphin decision, can we eliminate this 
   source from consideration?
-  Fractionation of C3+ product at Bahamas Terminal:  Capital Costs go up significantly if fractionation equipment is required 
   to separate C3, C4 and C5+ into commercial grade products for export from the Bahamas.  Do we need to consider this 
   option, or can we just product a C3+ product for export to Mount Belview, Texas?
-  Contractor Direction:  Do we direct contractors to include the LPG Extraction facilites in their current bid?  Should we just 
   direct them to just revise the LNG Pumping arrangement and provide tie-ins to facilitate LPG extraction at a later date?  
   How much space should we direct them to allocate for future LPG extraction facilities?
-  Utilities:  Addition of the C3+ extraction facilites will increase the utility loads for the terminal.  Do we advise contractors of
   estimated additional requirements at this time?

Regards
James