September 14, 2015 | Ad hoc announcement pursuant to Art. 53 LR

Burckhardt Compression to Deliver Numerous Reciprocating Compressors for Freeport LNG’s Liquefaction and Export Project

Burckhardt Compression delivers numerous reciprocating compressors for Freeport LNG’s Liquefaction and Export Project. The highly flexible Laby® Compressors adapt perfectly to the varying gas conditions at Freeport LNG’s export terminal and allow oil - free compression of LNG BOG without gas pre - heating at start up.

Burckhardt Compression has been chosen to deliver numerous reciprocating compressors for Freeport LNG’s liquefaction and export project. The customers, CB&I and Chiyoda (engineering) and Zachary (construction), selected Burckhardt Compression due to its highly flexible compression solution that provides best efficiency and best process controllability at varying gas conditions at Freeport LNG terminal.

During ship loading, natural gas, boiling off or being displaced by LNG (liquefied natural gas) flowing into the tank, is compressed up to 24/350 bara/psia. As a most economical solution, this gas is used to fire the pre-treatment facility’s gas turbine as a complementary supply to the gas from pipeline grid.

Contactless labyrinth sealing technology for oil free compression

Burckhardt Compression’s Laby® Compressors are used for decades for BOG (boil-off gas) handling in LNG receiving and export terminals and other cryogenic applications. The unique contactless labyrinth sealing system allows oil-free compression of LNG BOG at suction temperatures down to -170°C/-250°F. As no gas pre-heating or cool down is required at start-up, Laby® Compressors offer highest operational flexibility. Excellent part load efficiency, gas tight design and low maintenance due to high availability and reliability minimize operational expenditure (OPEX).

The skid mounted and ready to bolt up reciprocating compressor systems will be delivered end of 2016.

Increased production of natural gas in the USA

Due to attractive market opportunities and increased production of natural gas in the USA, Freeport LNG has decided to build an expansion of its terminal to enable liquefaction and export of approximately 2.0 billion cubic feet per day of US natural gas in the form of LNG. Freeport LNG also owns and operates an existing LNG regasification terminal located near Freeport, Texas.