Houston Alaska - Alternate site for Natural Gas ... · • Liquefaction cycle uses feed gas as...

Houston Alaska - Alternate site for Natural Gas Liquefaction facility

PG DR GS DL & SGT Restricted © Siemens AG 2017

Restricted © Siemens AG 2017

Agenda

Introductions Who is Siemens? Titan Plant Expansion Concerns with current plan Alternate Solution Plan Site Advantages & Benefits LNGo HP Micro-liquefaction System Overview Cost Model Next Steps


Siemens Fast Facts

• Global Powerhouse focusing on electrification, automation, and digitalization • Approximately 400,000 employees in 190 Countries (50,000 in US) • Projects generated over 800,000 jobs in US alone • 100 Siemens employees in Alaska • Over $88B in revenue FY16 • Almost $24B in revenue from US

• Siemens is one of the world’s largest producers of energy-efficient, resource-saving technologies

• Leading supplier of systems for power generation and transmission as well as medical diagnosis

• Innovation is the basis for Siemens’ success and for over 170 years has heavily invested in technology.

• $4B spent annually in R&D

• Operate over 16 separate Corporate Technology (CT) research centers globally

• Collaborate with 25 principal Universities in the areas of electrification, automation and digitalization

• Siemens has approximately 60,000 granted patents, hundreds pending and on average file 17 per day!


Depth and Breadth of the Siemens Organization

Managing Board

Market Americas Healthcare worldwide

Middle East,

Russia, CIS1) Asia, Australia Europe,

Africa

Siemens Financial Services

SFS

Divisions (report P&L)

Power and Gas

PG

Wind Power and Renewables

WP

Power Generation Services

PS

Mobility

MO

Energy Management2)

EM

Building Technologies

BT

Digital Factory

DF

Process Industries and Drives

PD

Healthcare

HC

Separately managed

Corporate Core Corporate

Development

CD

Finance and Controlling

FC

Corporate Technology

CT

Human Resources

HR

Communications and Government Affairs

CG

Legal and Compliance

LC

Corporate Services Siemens

Real Estate

SRE

Corporate Supply Chain Management

CSCM

Information Technology

IT

Global Shared Services

GSS

Governance & Markets 3)

GM


Building Technologies

BT CPS Control Products & Systems

BT System House Solutions, Service

BT Enterprise Building Performance & Sustainability, national accounts, data centers and enterprise security

Mobility

MO RS Rolling Stock (Urban Transport & Mainline Transport)

MO RA Rail Automation

MO RE Rail Electrification

MO ITS Intelligent Traffic Systems

MO CS Customer Services

Process Industries &

Drives PD LD Large Drives

PD OM Oil & Gas and Marine

PD PA Process Automation

PD MD Mechanical Drives

PD MT Metals Technologies

Digital Factory

DF CP Control Products

DF CS Customer Services

DF FA Factory Automation

DF MC Motion Control

Power Generation

Services

PS PG

Power & Gas

PS DGC Distributed

Generation & Compressors

PS WP Wind Power & Renewables

Power & Gas

PG GT Large Gas Turbines,

Generators

PG DG Distributed Generation

PG SU Steam Turbines

PG ES Energy

Solutions

PG IE Instrumentation

& Electrical

PG CP Compressors

PG-DR

Dresser-Rand

Wind Power & Renewables

WP OF Offshore

WP ON Onshore

Energy Management EM MS Medium Voltage & Systems

EM LP Low Voltage & Products

EM TR Transformers

EM HP High Voltage Products

EM SG Smart Grid Solutions & Services

EM EAEnergy Automation

EM TS Transmission Solutions

Siemens Divisions and Business Units

Healthcare

HC IM

Imaging & Therapy Systems

HC CP Clinical

Products

HC DX Diagnostics

HC CX Customer Solutions

Siemens Financial Services SFS COF Commercial Finance SFS FIM Financing and Investment Management SFS INS Insurance

SFS PSE Project & Structured Finance Power, Oil & Gas SFS PSH Project and Structured Finance Healthcare and Leveraged Finance SFS PSI Project & Structured Finance Energy Management, Mobility & Industries

Corporate Services and Corporate Core CD Corporate Development, Includes Siemens One and CoC CF Controlling and Finance CG Communications and Government Affairs

CT Siemens Corporate Technology GM Governance and Markets GS Global Services, Includes IT, SRE

HR Human Resources LC Legal and Compliance


It’s true.. we even help The Avengers do their job better!

http://read.marvel.com/#/labelbook/44729

http://read.marvel.com/#/labelbook/44729


Titan Plant Expansion Concerns

Multiple single points of failure; lacks utility grade reliability and redundancy

• Delivery

• Production

• Site location


Titan Plant Expansion Concerns - Delivery

Trucking LNG is an unsustainable and costly option for a long term growth strategy

• Increase in gas demand = more trucks on the road

• Requires traveling the most dangerous segments of AK highways

• Has proven to be a significant safety concerns

• Titan area is not on the Rail line… trucking is its only mode of transportation/delivery


Titan Plant Expansion Concerns - Delivery

• Hwy Axle load limits may be reduce during spring months

• Road beds are not constructed for heavy hauling

• State Funds are needed now to repair and rebuild these roads

• Houston and Big Lake do not want truck traffic on their roads

• State DOT designates Burma Road as a future alternate truck route through Big Lake

and Houston; currently its a glorified trail

• Big Lake just completed a round about to block these trucks

• Potential for IGU to realize unexpected costs later as roads degrade


Titan Plant Expansion Concerns - Production

• Titan plan will maintain poor, road-centric, supply chain reliability

• Current expansion plan is for a new 100k gallons of LNG/day facility

• Current demand is approximately 30k gallons /day which is being met by Titan

• Excessive campaigning required due to mismatched plant size to initial demand

• Large plant will be operationally inefficient due to excessive required start/stops


Titan Plant Expansion Concerns- Site Location

• Adding additional LNG capacity at the same site fails to add diversity in supply chain and reduces reliability

• Backup plan is trucking LNG from Canada

• 5 day turn around, 2 drivers per truck

• Not logistically feasible with current assets


So what’s a better plan?

Deploy modular micro LNG systems at Houston in order to :

Increase reliability & redundancy Diversify supply chain Cost effectively deliver LNG via Railroad Improve road safety Decrease traffic congestion Avoid hidden costs in road upgrades and repairs Improve efficiencies by scaling production to match demand Achieve HB105 goals and reduce PM 2.5 Be operational in about 12 months!


Proposed LNG Plant Site Houston, Alaska, Rail Head & Industrial Park

KI- Proposed Houston LNG Site


Existing Rail Line to Port Mack Terminates in

Houston

Houston LNG – Rail Service

Unfunded

Titan


• Modular system converting natural gas to liquefied natural gas (LNG) Micro-scale, point of use • LNGo LP (Low Pressure) system – up to 7,000 GPD (11 tpd) • LNGo HP (High Pressure) system – up to 30,000 GPD (48 tpd)

• Liquefaction cycle uses feed gas as fuel*, refrigerant, and liquefied product * If power module is included.

• LNGo plants are environmentally sound with no flare tower

as all tail gas is consumed in the process

• The modular and compact micro-scale LNG production plant meets national codes and standards

LNGo System Overview


LNGo HP System General Arrangement

Conditioning module Molecular sieve removes CO2 and H2O. The purge flow, with C2 and above, is blended into the fuel supply to the Siemens Gas Engine.

Power module 2 x Gensets driven by Siemens Gas 1MW engine consumes purge gas from mole sieve to power unit

Feed/Flash compressor module MOS™ compressor drives efficient process

Process module Delivers up to 30,000 gpd (48 tpd) LNG

Primary Compressor module MOS™ compressor drives efficient process

Control module Houses all controls for system


LNGo HP System Features and benefits

• 30,000 gpd production - perfect size for local LNG production and demand • Re-deployable (skid mounted and small footprint) • Self-powered available - easy to permit • Multiple systems allow to operate independently to maximize efficiencies of each system • Premier, proven Dresser-Rand / Siemens engineered product technologies • Shortest cycle time order to operation (40 weeks for delivery) • Multi-market applications • Worldwide exceptional service and support


Houston LNG - Plant Site

A Modular LNG Plant, built for Alaska’s domestic markets, located at Houston, Alaska has strategic financial advantages over all other sites considered.

• Transportation Advantages

• Location Advantages

• Construction Advantages

• Cost savings to the State

• Operational Advantages

• Environmentally Sound

• Helps Communities throughout Alaska become energy viable

18


Houston LNG - Transportation Advantages

Leverage AK Railroad

• Primary mode of delivery • Half the cost of trucking and can achieve even greater economies of scale as volume increases • Safer • More reliable method of transport over trucking • Minimize truck traffic and associated hazards • Rail Spur already adjacent to property • Rail access to:

Fairbanks DoD Facilities

Whittier/Seward Ports Nenana Port

Secondary Transport option • Still have access to Parks and Glenn Highways for emergency backup


Houston LNG - Location Advantages

• Knikatnu Inc owned • 3K acres Light/Heavy Industrial Zoned

• Coalbed methane present- Estimated 72bcf

• 12 miles from Enstar pipeline

• Lower property tax rate

• On site Rail Access with 180 Car Siding

• High Voltage Power Lines on Site

• Future Waste Water Treatment Site

• Possible Power Plant Site


Houston LNG - Construction Advantages

Plant Advantages • Modularized plant design results in shorter construction time

(40 weeks to deliver) • Redeployable design provides flexibility to move assets • Scalable, efficient operations, • Reduced LNG storage costs using ISO’s for storage and rail

transport

Location Advantages • Reduced LNG storage costs using ISO’s for storage / rail

transport • Better ISO (Insurance Service Office) Rating:

• Titan LNG Location has 8 ISO rating • Houston has a 5a ISO rating that means thousands in fire

insurance savings • Alaska’s lowest construction costs/ largest employee

community


Houston LNG - Benefits

AK Railroad provides Fairbanks and Alaska a virtual pipeline

Houston LNG Site can service Alaska’s Rail, Sea and Road Communities


Proposed Project Costs

• Cost model driven by assumptions which can result in wide range of estimates. • Development and Construction Management are assumed fixed at $21,850,000 can be refined depending on activities performed by IGU

or other stakeholders.

Estimate Gas

Pipeline Railroad

Spur Loading Facility

Power Plant

LNGo (2 or 3 units)

Site Preparation Storage (LNG) Totals

Aggressive $ 5,000,000 $ 220,000 $ 2,850,000 $ 4,600,000 $ 36,500,000 $ 2,550,000 $ 2,850,000 $ 76,420,000

Conservative $ 31,200,000 $ 995,000 $ 2,850,000 $ 17,700,000 $ 54,750,000 $ 4,000,000 $ 14,200,000 $ 147,545,000


Next Steps

Work with IGU to: • Clarify scope and specific details of LNG plant

• Review Cost Models for Capital Equipment and Operations to

determine burner tip cost

• Define Acceptable Risk Mitigation Strategies

• Agree on Growth Strategies


Conclusion

Siemens has the expertise and technologies to grow LNG demand in multiple markets to:

• Continue to improve economies of scale to drive down cost

• Support remote communities and other industries using LNG not only for heat but also for power

• Aid in the betterment of all Alaskans by delivering integrated, holistic solutions to meet Alaska’s growing energy and fiscal needs


Questions?

Kelly M. Laurel Director, Energy and Infrastructure Siemens Government Technologies, Inc. 2231 Crystal Drive, Suite 700 Arlington, VA 22202

Office: 703.480.8905 Mobile: 703.789.5438 [email protected]

mailto:[email protected]

Houston Alaska - Alternate site for Natural Gas ... · • Liquefaction cycle uses feed gas as...

Documents

Transcript of Houston Alaska - Alternate site for Natural Gas ... · • Liquefaction cycle uses feed gas as...