Transcript Liquefied Natural Ga.. - Dredging Contractors of America

LNG in North America
Tommy Stone – Vice President,
Operations & Engineering
Trunkline LNG Company, LLC – Lake Charles, LA
LNG Properties –
A Means of Transportation
Liquefied Natural Gas (LNG)
• Temperature
– Minus 260 degrees Fahrenheit
• Volume reduction of 620 to 1
620 Ships of Gas = 1 Ship of LNG
• Composition
–
–
–
–
–
Methane (85 – 98%)
Ethane (2 – 12%)
Propane (0 – 4%)
Butane (0 – 1%)
Others (0 – 1%)
• LNG is nontoxic
• Odorless, colorless
• Vapor is natural gas – lighter
than air as it warms
• Stored near atmospheric
pressure (± 2 psig)
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Government and Academics
Agree, LNG is the Solution
• FERC changes U.S. policy towards LNG terminals
“The public interest is served through encouraging gas-on-gas
competition by introducing new imported supplies of natural
gas which will be accessible to all willing purchasers,”
- FERC Order 12-18-02
“in a short time the commission had made changes to federal
policies dealing with LNG licensing and seen a response from
businesses interested in investing in terminals, which will
contribute to alleviation of shortages of natural gas in the U.S.,”
- Pat Wood III, FERC Chairman 09-10-03
• Energy Market Research
LNG…will set the price of gas in North America for the foreseeable
future… - Michael Economides, University of Houston
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0105-005
Nation Needs New Sources
of Supply
Arctic Gas
• Supply tightening
Rockies
– Demand growth
– Traditional basins
in decline
• New supply
must come from
new areas
$3.60 - $5.85
LNG
– But will only come at a price that supports
development
Deep Gulf
• LNG has the opportunity to gain market share
4
LNG
0105-005
LNG Value Chain, Exploration
& Production
TOTAL
Exploration &
Production
Reserves
Scope
9 Tcf
$0.05B
Initial
drilling
$0.05B
Development
Liquefaction
Shipping*
Regasification
Trains
required
2
Distance
12,000
nm
Cost per
train
$1.0B
Rd. Trip
Time
30
days
Ships
Required
$1.4B
Cost per
ship
12
Port
$0.14B
Storage
$0.16B
Vaporization
.20B
Engineering
& Other
.10B
$0.17B
$6.1 B
$1.5 B
$2.0 B
$2.0 B
$0.6 B
$3.60 – 5.85
$1.25 – 2.00
$1.25 – 1.50
$.60 – 1.60
$.50 – .75
25%
33%
100%
*Shipping: West Africa to U.S. Gulf Coast.
33%
5
9%
1 Bcf/d
Scenario
Per Unit
$/Mcf
% of
Total
0105-005
Proven World Natural
Gas Reserves
\\
~ 4.1% of World Reserves
Source:
BP Statistical Review of World Energy, 2006
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LNG Value Chain, Liquefaction
TOTAL
Exploration &
Production
Reserves
Scope
9 Tcf
$0.05B
Initial
drilling
$0.05B
Development
Liquefaction
Shipping*
Regasification
Trains
required
2
Distance
12,000
nm
Cost per
train
$1.0B
Rd. Trip
Time
30
days
Ships
Required
$1.4B
Cost per
ship
12
Port
$0.14B
Storage
$0.16B
Vaporization
.20B
Engineering
& Other
.10B
$0.17B
$6.1 B
$1.5 B
$2.0 B
$2.0 B
$0.6 B
$3.60 – 5.85
$1.25 – 2.00
$1.25 – 1.50
$.60 – 1.60
$.50 – .75
25%
33%
100%
*Shipping: West Africa to U.S. Gulf Coast.
33%
7
9%
1 Bcf/d
Scenario
Per Unit
$/Mcf
% of
Total
0105-005
Liquefaction Capacity is Large
and Will Continue to Grow
Indonesia
Indo ne s ia
Algeria
A lge ria
Malaysia
M a la ys ia
Qatar
Qatar
T rinidaTrinidad
d & T o ba go
Nigeria
N ige ria
Australia
A us t ra lia
Oman
Oman
Brunei
B rune i
AbuADhabi
bu D ha bi
USA
US A
Libya
Libya
E gypt
Egypt
Ira n
Iran
B o liv ia
Bolivia
Yemen
Yemen
R us s ia
Russia
V
e
ne
zue la
Venezuela
A ngo la
Angola
N o rwa y
Norway
P e ru
Peru
E q. G uine a
Eq. Guinea
B ra zil
Brazil
Existing
New
0
225,000
450,000
675,000
900,000
1,125,000
1,350,000
1,575,000
1,800,000
Cubic Feet/yr (000,000)
Source: G.I.I.G.N.L,
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Growth Potential in
Atlantic Basin Supply
Atlantic
Basin
3000
Tcf Reserves
Source: BP Statistical Review, 2006
& G.I.I.G.N.L.
2000
1500
2,546
10
Tcf Reserves
Liquefaction
8
9.6
6
5.6
1015
1000
500
Res./Liq. (yrs)
12
4
527
Atlantic Basin
290
9
Middle East
1,246
Pacific Basin
2
0
Bcf/d Liquefaction
2500
11.5
126
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Abundant LNG Supply
Norway
Middle East
Algeria
Trinidad
Libya
Egypt
Nigeria
Venezuela
Equatorial
Guinea
Angola
Middle East
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LNG Value Chain, Shipping
TOTAL
Exploration &
Production
Reserves
Scope
9 Tcf
$0.05B
Initial
drilling
$0.05B
Development
Liquefaction
Shipping*
Regasification
Trains
required
2
Distance
12,000
nm
Cost per
train
$1.0B
Rd. Trip
Time
30
days
Ships
Required
$1.4B
Cost per
ship
12
Port
$0.14B
Storage
$0.16B
Vaporization
.20B
Engineering
& Other
.10B
$0.20B
$6.1 B
$1.5 B
$2.0 B
$2.0 B
$0.6 B
$3.60 – 5.85
$1.25 – 2.00
$1.25 – 1.50
$.60 – 1.60
$.50 – .75
25%
33%
100%
*Shipping: West Africa to U.S. Gulf Coast.
33%
11
9%
1 Bcf/d
Scenario
Per Unit
$/Mcf
% of
Total
0105-005
LNG FLEET HISTORY CAPACITY
Vessel Size (Cubic Meters)
LNG Vessel Historical Capacity
150,000
145,000
140,000
135,000
Avg.Capacity (Cu/M)
130,000
125,000
120,000
115,000
1970s
1980s
1990s
2000s
Present
(2006)
Construction Era
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LNG VESSEL COST
Avg. Vessel Cost ($MM)
$300
$250
$200
$150
Avg. Cost ($MM)
$100
$50
$0
1970s
1980s
1990s
2000s
13
Present
(2006)
0105-005
LNG Vessel Fleet
• 228 Vessels - World Fleet
• 136 Vessels On Book (New Builds)
– Deliveries Through 2010
• 85% Membrane Containment
• 15% Moss (Spherical)
– Avg. 10/12 New Orders Each Year
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LNG SHIP TYPES
Moss
Membrane Tank Design
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LNG/C – Physical Size
• Length: 950 feet (3 football fields)
• Width: 150’
• Draft: 37’ (Underwater)
– 2615 m2 (28,000 sq/ft.)
• Air Draft: 195’ (Above Water)
– 6,600 m2 (71,000 sq/ft)
• Displacement: 110,000 Metric Tons
• Two Tractor Tugs Required for Berthing
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VESSEL TRANSIT TO TLNG
• 6-8 Hour Transit –
Approx. 52 Miles
• One Way Traffic for
Deep Draft Vessels
• 24 Hour Transits
• Lake Charles Pilots
• Corp of Engineers
Project
Project Depth = 40 feet
Outer Bar = 800 ft. Width
Inner bar = 400 ft. Width
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LNG Value Chain,
Regasification
TOTAL
Exploration &
Production
Reserves
Scope
9 Tcf
$0.05B
Initial
drilling
$0.05B
Development
Liquefaction
Shipping*
Regasification
Trains
required
2
Distance
12,000
nm
Cost per
train
$1.0B
Rd. Trip
Time
30
days
Ships
Required
$1.4B
Cost per
ship
12
Port
$0.14B
Storage
$0.16B
Vaporization
.20B
Engineering
& Other
.10B
$0.17B
$6.1 B
$1.5 B
$2.0 B
$2.0 B
$0.6 B
$3.60 – 5.85
$1.25 – 2.00
$1.25 – 1.50
$.60 – 1.60
$.50 – .75
25%
33%
100%
*Shipping: West Africa to U.S. Gulf Coast.
33%
18
9%
1 Bcf/d
Scenario
Per Unit
$/Mcf
% of
Total
0105-005
Atlantic Basin Regasification
Capacity Growing
16.5
15.0
Italy
Bcf/d
13.5
12.0
10.5
Spain
9.0
France
Greece
Turkey
Belgium
7.5
Italy
6.0
4.5
Spain
3.0
1.5
0.0
North
America
Spain
France
North
America
2002
France
North America
2008
• North America becomes much more
significant in the global LNG community
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0105-005
LNG Imports Relative to U.S. Demand
Quotes from EIA Energy Outlook
2006
Percent of U.S. Demand
12%
•
“Imports are expected to play an
important role in U.S. natural gas
markets, accounting for 21 percent of
total U.S. natural gas consumption in
2030”
•
“LNG imports are projected to grow
from 650 billion cubic feet in 2004 to 4.4
trillion cubic feet in 2030, with net LNG
imports rising from 17 percent of net
imports in 2004 to 78 percent in 2030”
•
“The most rapid growth in LNG import
capacity will occur over the next decade,
with peak annual capacity increasing
from 1.4 trillion cubic feet in 2004 to 4.9
trillion cubic feet in 2015”
10%
8%
6%
4%
2%
0%
2000
2001
2002
2003
2004
2005
2006 2015E
Source: EIA
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0105-005
TLNG Currently Offers Greatest
Flexibility of All Domestic Terminals
Distrigas, Tractebel
Everett, MA
Summary
Total Existing U.S. Regasification
Current
Expanded
(MMcf/d)
4,388
6,115
(Bcf)
27.65
42.75
Sendout:
Storage:
Current
Expanded
(MMcf/d)
715
n/a
(Bcf)
3.4
n/a
Sendout:
Storage:
Cove Point LNG, Dominion
Cove Point, MD
Trunkline LNG,
Panhandle Energy
Lake Charles, LA
Sustained
Sendout:
(MMcf/d)
1,800
Storage:
(Bcf)
9.0
Sendout:
(MMcf/d)
Storage:
Peak
2,100
9.0
Current
Expanded
1,000
1,800
7.8
14.5
(Bcf)
Elba Island, El Paso
Savanna, GA
Current
Expanded
(MMcf/d)
823
1,800
(Bcf)
7.45
15.85
Sendout:
Storage:
21
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LNG in U.S. Gulf Coast Region
• U.S. Gulf region 45-55% of U.S. supply
• Sufficient pipeline infrastructure
• Blending and processing allow a broader range
of gas quality
• Low cost storage
• Deepwater ports
• Supportive state
&
local govt’s
• Reduced NIMBY
issues
*Source: US Department of Energy
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Texas/Louisiana LNG Projects
Sabine Pass LNG
In-service date: 2008-9
Sendout: 2.6 – 4.0 Bcf/d
Developer: Cheniere
Capacity Holder: Total & ChevronTexaco
Trunkline LNG
In-service date: 2006
(expansions)
Sendout: 1.8 Bcf/d
Developer: Southern Union
Capacity Holder: BG LNG
Cameron LNG
In-service date: 2008
Sendout: 1.5 – 2.65 Bcf/d
Developer: Sempra
Capacity Holder: ENI & Merrill
Lynch
Freeport LNG
In-service date: 2008
Sendout:1.5 Bcf/d (expand to 3.0 Bcf/d)
Developer: Freeport LNG Dev.*
Capacity Holder: Dow & ConocoPhillips
& Mitsubishi
Creole Trail
Golden Pass
In-service date: 2009
Sendout: 2 Bcf/d
Developer: ExxonMobil
In-service date: 2011
Sendout: 3.0 Bcf/d
Developer: Cheniere
Capacity Holder: TBD
Energy Bridge
In-service date: 3/2005
Sendout: 0.5 Bcf/d
Developer: Excelerate Energy
Corpus Christi Projects (3)
In-service dates: 2009-10
Sendout: 4.7 Bcf/d (total)
Developers: 4Gas, Occidental
Approved by FERC or MARAD/USCG
Proposed to FERC
24
*Freeport LNG Development is composed of a General Partnership which has management control, but zero economic interest (Michael Smith 50% and ConocoPhillips
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50%) and Limited Partners which have zero management interest, but have economic
interest (Michael Smith 60%, Cheniere 30% and Contango 10%).
Trunkline LNG Activity (2Q 2007)
LNG Imports by Terminal
Jan – June 2007
LNG Imports by Company
Jan – June 2007
Excelerate
1%
Excelerate
2%
Cove Point
19%
Lake Charles
40%
Elba Island
19%
BG LNG
59%
BP
7%
Statoil
6%
Shell
5%
Suez LNG
21%
Everett
21%
Total = 464.0 Bcf
3.9% of U.S. Gas Demand (2 Qtr)
*Source: US Department of Energy
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0105-005
Trunkline LNG
Expansion Facilities
• Phase I
– Construction Completed April 2006
– Double sendout capacity to 1.2
Bcf/d
• Peaking of 1.3 Bcf/d
– Increase storage capacity to 9.0 Bcf
• Phase II
– Construction Complete July 2006
– Increase sendout capacity to 1.8
Bcf/d
• Peaking of 2.1 Bcf/d
• Trunkline Gas Company Loop
– Construction Complete
– 22 miles (new construction) of
36” pipeline loop
– Several (6+) new or expanded
delivery points
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0105-005
TLNG & TGC Field Zone Supply
with LNG Expansions
Trunkline LNG Supply
1,500MMcf/d
Mainline
Capacity
• 2003 - 2006 (avg): 525 MMcf/d
• 2007+ (est):
1,500 +MMcf/d
Longville
Kountze
Cypress
Centerville
Patterson
Lake
Charles
LNG
Edna
Beeville
2006
TGC Receipts:
TGC Mainline
Capacity:
Field Zone
Supply Overage:
MMcf/d
2,494
Sea
Robin
Terrebonne
1,500
994
27
0105-005
LNG Value Chain – Total Project
TOTAL
Exploration &
Production
Reserves
Scope
9 Tcf
$0.05B
Initial
drilling
$0.05B
Development
Liquefaction
Shipping*
Regasification
Trains
required
2
Distance
12,000
nm
Cost per
train
$1.0B
Rd. Trip
Time
30
days
Ships
Required
$1.4B
Cost per
ship
12
Port
$0.14B
Storage
$0.16B
Vaporization
.20B
Engineering
& Other
.10B
$0.17B
$6.1 B
$1.5 B
$2.0 B
$2.0 B
$0.6 B
$3.60 – 5.85
$1.25 – 2.00
$1.25 – 1.50
$.60 – 1.60
$.50 – .75
25%
33%
100%
*Shipping: West Africa to U.S. Gulf Coast.
33%
28
9%
1 Bcf/d
Scenario
Per Unit
$/Mcf
% of
Total
0105-005
TRUNKLINE LNG – LAKE
CHARLES, LOUISIANA
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REGASIFICATION PROCESS
BOIL-OFF
COMPRESSOR
PIPELINE
COMPRESSOR
RECONDENSER
DESUPERHEATER
GAS
LIQUID
LNG
STORAGE
TANKS
30
VAPORIZERS
PIPELINE
0105-005
Trunkline LNG - Infrastructure
Enhancement Project (IEP)
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0105-005
Conclusion
“One of the benefits of LNG is that
new supplies could enter the
market within the next few years,
well ahead of other opportunities,
and begin to offer relief to
American consumers.”
- Center
32
for LNG
0105-005
Questions & Answers