I made presentation on Oil Gas 2014 Conference

1. Dynamic Gas Blending
Overview

2. Dynamic Gas Blending
What is it?
 A way to use two fuels
simultaneously in a power
application
Why is it important to
our customers?
 Savings ↑
 Regulated Emissions
What is Caterpillar’s
competitive advantage?
 Superior substitution and
more tolerant of low quality
gas
 Emissions Certification*
 Factory warranty with more
coverage
*Applicable to U.S. kits

3. Why Dynamic Gas Blending?
 Historical high discrepancy between natural gas
and diesel fuel prices
 Abundance of field gas in various shale plays
worldwide
 Expanding infrastructure for gas delivery
 Regulatory pressure to reduce flaring
 Maintain regulated emissions compliance

4. Product Overview
 Core diesel engine with gas introduced into the intake air stream
 Still a compression ignition engine
 Use gas when it’s available, seamlessly revert to diesel-only mode if
no gas available
 Continuously optimizes gas substitution up to 70%-gas, 30%-
diesel while maintaining diesel power and transient
performance
 Closed loop feedback monitors combustion characteristics to
continuously protect engine from detonation
 Can handle poor fuel quality, up to 2300 Btu/scf (Non Regulated)
 Automatically adjusts to operate under a wide range of methane
number gas quality
 Simple installation and no load bank required
 Integrated control panel for engine, generator, and gas system
control and monitoring

5. Generator Set Schematic
Fuel Valve Reg Shutoff Fuel Htr
EKW Signal
EMCP4.4
ISM ADEM 4Exhaust Thermocouples
Detonation Sensors
Gas Supply
in

6. Integrated Sensor Module (ISM)
Monitors combustion and communicates
data to the updated Engine Control
Module(*) and controls system to adjust and
protect the engine
*Not shown – ADEM A4 ECM
(new with DGB)
EMCP 4.4 Control Panel
Analog gauges for quick daily walk-around
Improved display performance, 16 languages,
paralleling & troubleshooting capability
Dynamic Gas Blending Technology
1 2
3
4
1. Customer connection point
2. Gas heater, Gas Shut Off
Valve & Pressure Regulator
3. Gas Fuel Control Valve
4. Line supplying metered gas
to the intake air stream

7. Estimated Fitting Times
Engine Hardware : 16-32 labor hrs Control System : 16-32 labor hrs
No manual tuning or additional
genset commissioning required
for DGB system operation
+

8.  Gauges with walk around parameters
 5.5” Graphical Interface
 Improved troubleshooting/diagnostics
 16 language capability
 Integrated generator monitoring & control
Panel Side by Side Comparison
 Generic gauges with some inactive
 Very small display interface
 Toggle switch navigation
 No programmability
 No generator monitoring or control
Old New

9. Dynamic Gas Blending Controls
Caterpillar: Confidential Yellow
Concept Only
GAS BLENDING CONTROL
STATUS ENABLED
MAX % 70%
ACTUAL % 40%
LOWER
GAS BLENDING
ON OFF RAISE
Panel Value
 Direct Rack Input Connection (mAmps to PWM
Converter)
 Plug and Play Connection to Engine and CAT
Generator
 6 Gauge Direct Readout
 Supports future Caterpillar Remote Monitoring
DGB Parameters
 Gas Blending on/off (Switch Input)
 Max % Substitution (Operator Input)
 Act % Substitution (Feedback)
 Reason Code for % Diff
 Gas Pressure
 Gas Valve Position Status (Open/Closed)
 Generator Power KW (PWM Input to Engine)

10. Safety
Unique safety features
 Design of genset as a whole fully
reviewed by Caterpillar
 Diesel control ECM intertwined with gas
controls and combustion sensors
 Flame arresters at each cylinder to
protect engine and operators
 Knocking and exhaust monitoring at
each individual cylinder
 Caterpillar-quality components used :
no plastic piping for gas

11. Drill rig majority load range
Dynamic Gas Blending
Substitution Curves*
Above 60% for majority of load range

12. Drilling : Theoretical Fuel Savings
Additional savings will be realized by reducing the number of truck deliveries of
diesel. If using only flared gas, gas price can be considered to be near zero.
Working hypothesis :
Quantity 3 units
Gensets Engine power 1,450 bhp / unit
Electric power 1,000 kWe / unit
Associated gas : typical 50% substitution Average load 35%
Pipeline gas : typical 70% substitution Hours per year 4,000 hrs (8,766/yr)
Subject to gas analysis and load profile.
Figures for guidance only. Gas 4.35 $/MMBtu
Efficiency loss from using gas 7% of substitution
Diesel 4.20 $/USGal
42.80 MJ/kg 32.75 $/MMBtu
128250.30 Btu/USGal
Substitution Total fuel cost Fuel saved
rate (USGal/yr) $ / year (MMBtu/yr) $ / year $ / year / site $ / year / site
0% 297,440 1,249,249 0 0 1,249,249 0
10% 267,696 1,124,324 3,842 16,711 1,141,035 -108,214
30% 208,208 874,474 11,690 50,849 925,324 -323,925
50% 153,094 642,996 19,184 83,450 726,446 -522,803
70% 94,481 396,820 27,371 119,063 515,883 -733,366
Diesel consumption / site Gas consumption / site

13. Working hypothesis :
Quantity 5 units
Gensets Engine power 1,450 bhp / unit
Electric power 1,000 kWe / unit
Associated gas : typical 50% substitution Average load 70%
Pipeline gas : typical 70% substitution Hours per year 8,000 hrs (8,766/yr)
Subject to gas analysis and load profile.
Figures for guidance only. Gas 4.35 $/MMBtu
Efficiency loss from using gas 7% of substitution
Diesel 4.20 $/USGal
42.80 MJ/kg 32.75 $/MMBtu
128250.30 Btu/USGal
Substitution Total fuel cost Fuel saved
rate (USGal/yr) $ / year (MMBtu/yr) $ / year $ / year / site $ / year / site
0% 1,982,935 8,328,326 0 0 8,328,326 0
10% 1,784,641 7,495,494 25,610 111,406 7,606,899 -721,427
30% 1,388,054 5,829,828 77,930 338,996 6,168,825 -2,159,502
50% 1,020,628 4,286,639 127,892 556,332 4,842,970 -3,485,356
70% 629,873 2,645,468 182,472 793,752 3,439,220 -4,889,106
Diesel consumption / site Gas consumption / site
Production: Theoretical Fuel Savings
Additional savings will be made by reducing the number of truck deliveries
of diesel. If using only flared gas, gas price can be considered to be zero.

14. Emissions*
 Dynamic Gas Blending kit will
retain the original emissions
certifications of the engine
 Retrofit kits will include Cat DOC
 Full emissions documentation will
be available through TMI
*Slide applicable for U.S. kits only
0
1
2
3
4
5
6
7
8
9
Tier 1
3512B
Tier 2
3512C
3512C with
DGB
G3516B
NOx (g/hp-hr)
CO (g/hp-hr)
PM (g/hp-hr)
3512C Diesel Oxidation Catalyst with insulation (insulation not included)

15. Supply Gas Quality Requirements
 DGB system can accept gasified LNG, CNG,
pipeline, or associated field gas
 Recommended Lower Heating Value is
between 900 and 1250* Btu/scf (can
calculate using GERP)
– Clean, dry gas (Gaseous Fuels A&I guide LEBW4977)
– Up to 10ppm H2S (emissions certified kits)
– Up to 50ppm H2S (non-emissions certified kits with
stainless steel aftercooler added)
 Supply gas pressure to DGB: 12 to 35 psi
 Supply gas temperature to DGB: 10 to 60
deg C
 Supply gas flowrate: for 3512C, up to 6600
SCF/hr under max substitution conditions
* Applicable to U.S.A. Emissions Certified Kit

16. Dynamic Gas Blending - Value
 Unique diesel injection timing map for Gas Blending Mode
– Allows for 10-20% improved substitution over diesel-only map at key
operating load factors
– Ensures emissions compliance on certified range of gases over all
operating load factors*
– Protects engine and expands load factor range over which substitution
can be safely achieved & optimized
 Continuously maximized substitution as loads & gas
changes
– Comprehensive controls keep engine safely within peak cylinder
pressure, exhaust gas limits
– Keep engine out of detonation
– Closed loop feedback maintains genset power and transient
performance
 No manual setup, extra commissioning, or tuning
– No need to retune or swap controls as sites, gas quality change
– Simple operator interface to set substitution, see live data on system
performance
– If no gas available, system automatically reverts to diesel-only mode
*Applies to U.S. kits only
Increased fuel savings
opportunity
Emissions peace of
mind
Reliable, durable
product
No additional operating
costs, maintenance
activities

17. Timeline
 Currently conducting 3512C Land Drilling & 3516B Production field
follows in the US, Canada, Russia and Argentina
 Field follow progress indicates availability as shown below
*All availability dates are tentative and subject to change

18. Dynamic Gas Blending
Delivering Project Success
Frac Installation - OklahomaProduction Installation - Argentina
Drilling Installation - Oklahoma
Drilling Installation - Canada

19. Caterpillar Oil & Gas product

20. THANK YOU FOR YOUR ATTENTION
For more CAT OIL & GAS
Please contact
Mr. Otgontugs U.
Sales Engineer
PSD of WAE
Mob: 95951542
Tel: (976) 70187588
Fax: (976) 70187587
Email: otgontugs@wagnerasia.com
Web: www.wagnerasia.com