Determining the Viability of a Small Scale LNG Project
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© Wärtsilä Determining the Viability of a Small Scale LNG Project Platts 16 th Annual LNG Conference Houston, Texas, February 9-10, 2017 Presented by Sampo Suvisaari Wärtsilä Energy Solutions 1
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Transcript of Determining the Viability of a Small Scale LNG Project
© Wärtsilä
Determining the Viability of a Small Scale LNG ProjectPlatts 16th Annual LNG Conference
Houston, Texas, February 9-10, 2017
Presented by Sampo Suvisaari
Wärtsilä Energy Solutions
1
© Wärtsilä February 20172
Wärtsilä is a leading provider of complete life-cycle marine, energy and LNG solutions and services to customers globally.
• Wärtsilä Power Plants
Power Plants Installed Base:
• Over 63 GW in 176 countries
• 4200 MW in Central America and the Caribbean
• In 2016, Wärtsilä's net sales totalled EUR 4.8 billion with approximately 18,000 employees. The company has operations in over 200 locations in more than 70 countries around the world.
• Publicly listed company in Finland (Nasdaq Helsinki).
THIS IS WÄRTSILÄ
© Wärtsilä
NORDIC EXAMPLE: TORNIO MANGA LNG
50,000 m3 small scale LNG
terminal in Finland
100 MEUR EPC by Wärtsilä
• Small Scale does not necessarily
mean a higher cost per storage unit
3 February 2017
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THE CARIBBEAN
February 20174
The Challenges
- Small consumption centers
- Non-traditional LNG buyers
- Variable demand
- Low oil price at present
SMALL SCALE LNG PROJECTS IN THE CARIBBEAN
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And increasingly…
Renewable Energy
THE ALTERNATIVES
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LARGE, MEDIUM AND SMALL SCALE VALUE CHAINS
© Wärtsilä7 February 2017
http://www.wartsila.com/twentyfour7/in-detail/lng-value-chain-optimisation-case-aruba
Read more at
© Wärtsilä
DEDICATED MEDIUM SCALE TERMINAL FOR SINGLE POWER PLANT
• A dedicated LNG terminal that can receive full scale LNG carriers can be feasible for power
plants of about 200 MW and larger.
© Wärtsilä8 February 2017
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The “50 MW Power Plant”
50 MW is a reasonably large power plant size for many of the smaller Caribbean islands
SMALL CONSUMPTION CENTERS
9 February 2017
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The challenge of the “50 MW Power Plant”
- Usually an existing facility, not a greenfield project. The facility may not be ready for LNG/gas use immediately. A conversion or modernization may be required.
- Typically will require liquid fuel backup being in an island.
- Low oil price at present does not help justify conversion costs by economic reasons alone.
- LFO and ULSD cases most feasible.
SMALL CONSUMPTION CENTERS
10 February 2017
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SMALL SCALE LNG STORAGE IN A BARGE
• A small scale LNG storage barge, or FSRU barge may be ideal for certain protected locations.
© Wärtsilä February 201711 February 2017
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EXISTING SMALL SCALE LNG / DUAL FUEL POWER PLANT
Example of a protected site for a barge. This barge (just below the second bridge) is a 110 MW
combined cycle (Wärtsilä Flexicycle) dual fuel engine power barge without onboard LNG storage.
© Wärtsilä12 February 2017
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Small scale solution with bullet tanks
© Wärtsilä13 February 2017
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EXISTING SMALL SCALE LNG FACILITY WHERE LNG IS DELIVERED BY TRUCKS
14 February 2017© Wärtsilä
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EXISTING SMALL SCALE LNG / DUAL FUEL WÄRTSILÄ POWER PLANT
15 February 2017© Wärtsilä
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Sources of LNG available for Small Scale Projects:
• Onshore hubs such as e.g. AES Dominicana.
• FSRU hubs such as e.g. SPEC/Promigas FSRU in Cartagena, Colombia.
• Small Scale Friendly Export Facilities (such as Eagle LNG, Florida).
• And the future could be: LNG carriers acting as dynamic, dedicated floating hubs (an “LNG Uber”).
KEY QUESTION: WHERE WILL THE LNG COME FROM?© Wärtsilä
16 Photo © Wärtsilä Photo © Hoegh and Promigas
© Wärtsilä
Keys to successful projects within this environment
- Site suitable for cost effective infrastructure.- Good source of LNG & competitive cost of delivered product.- Price indexation of delivered gas according to customer needs.- Flexibility of supply without heavy financial costs or penalties for volume
adjustments.- Value from other incentives than fuel cost (environmental & diversification
reasons).- Effective integration with renewable energy (gas & gas engines are ideal
due to fast start capabilities).
How can projects be bankable?
- Involve existing value chains- Supplier flexibility- Have a Plan B
17 February 2017
© Wärtsilä
Thank you!
Sampo SuvisaariRegional Director, Latin America North and the [email protected]
Wärtsilä Energy Solutions
18 February 2017
