LNG FUELING SYSTEMS AND LOGISTICSefdsystems.org/pdf/LNG_Fueling_-_Prometheus_Energy... · 2013. 9....
Transcript of LNG FUELING SYSTEMS AND LOGISTICSefdsystems.org/pdf/LNG_Fueling_-_Prometheus_Energy... · 2013. 9....
LNG FUELING SYSTEMS AND LOGISTICS
NATURAL GAS POWER FOR SHALE DEVELOPMENT USING NATURAL GAS POWER FOR DRILLING AND HYDRAULIC FRACTURING
SEPTEMBER 5, 2013
Conceptual, Confidential and Proprietary 1
http://www.youtube.com/watch?v=Ahg6qcgoay4
Agenda
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• Introduction to Prometheus
• Natural Gas Fueling from LNG
- Opportunity Drivers
- LNG Fueling Logistics
- Why LNG Fueled Drilling
- Why LNG Fueled Fracturing
Who is Prometheus Energy?
SPECIALIZING IN NATURAL GAS FUEL SUPPLY SOLUTIONS VIA LIQUEFIED NATURAL GAS (LNG)
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• Formed in 2009 – predecessor company a liquefaction technology play
• Headquartered in Houston, Texas • Operate today in US & western Canada • Offer vertically integrated LNG solutions with a
focus in the oil and gas, mining, power and process sectors
• An on-going, fundamental commitment to Quality, Health, Safety & the Environment
• Privately held--Major Shareholders: - Shell Technology Ventures Fund 1 BV (June, 2009) - Black River Asset Management (September, 2008)
Prometheus Energy’s Turnkey Solution
Natural Gas Out
LNG Fuel Supply - Transportation - Logistics
Portfolio of Onsite LNG Equipment - LNG storage & regasification
LIQUID
LNG Fueling for: • Drilling Rigs • Frac Spreads • Mine Haul • Process Heat • Power
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Natural Gas In
Liquefaction - LNG supply network
located throughout North America
- Access to 350k gpd capacity
BUSINESS CONFIDENTIAL
We bring a turnkey LNG supply-chain for remote natural gas
Why natural gas? A wide and sustained NG-Diesel spread
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$-
$5.00
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$ pe
r MM
BTU
U.S. Hydrocarbon Pricing--Last 16 Years
NG v DieselSpreadSpot Propane
Spot ULSDieselHenry HubNatural Gas
Data Source: EIA.gov; National Average Wholesale Pricing for Liquids; National Average U.S. Henry Hub NG Pricing
Data Source: ANGA
CLEAN ABUNDANT
LOCAL
• Economical spread between diesel and natural gas
• Diesel $20+/MMbtu • NG: <$5/MMbtu
• Stable Price, now and
projected
Our market is established and growing at over 100% per annum
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Prometheus Growth & Reliability Deliveries 2009 – To Date
Volume to date
(lng gal)
Delivery Count
(Truckloads)
Delivery Reliability
Rate
>51.1 million
>4,800 deliveries
>99.9%
1st Rig
Num
ber o
f LN
G T
ruck
load
s per
Mon
th
J-0
9M
-09
M-0
9J-0
9S-
09N
-09
J-10
M-1
0M
-10
J-10
S-10
N-1
0J-1
1M
-11
M-1
1J-1
1S-
11N
-11
J-12
M-1
2M
-12
J-12
S-12
N-1
2J-1
3M
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Recent Highlights 15+ active LNG fueled drill sites and 4 active or completed bifuel frac application • First turbine powered fracturing pilot in field (Jan) • First Canadian rig fueled (Mar) • 3 new rig contracts awarded in Mid Continent
(May) (operating) • 3+ new rigs contracts awarded in Marcellus (June) • Supply of 3 bifuel fracturing operations (Q1–Q3) • Supported successful drilling of ~500 wells with
LNG fuel solution • Fueled frac pumps for the completion of over 600
stages Location Eagle ford Marcellus Rockies
Onsite LNG Storage & Inventory Management
Logistics – Balancing variable demand with reliable supply
7 Business Confidential
10-30 30-80 80-120
400+
LNG Supply Summary (x,000 gpd)
Multiple Sources for each Customer
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3 4
LNG Transport Fleet & Logistics Command Center
End of ’14, >50 LNG road transports
24 x 7 logistics coverage
- 3 to 5 days onsite storage for heavy burn days.
- Daily site visit by tech, inventory reading, communication of key operations, and telemetry
What does a LNG fueled drilling solution look like?
Conceptual, Confidential and Proprietary 8
Quantifying the Opportunity • Diesel Price is ~$3.50/gal and climbing
An all-in delivered turnkey LNG fuel solution is ______ per DGE
• Assuming an average daily diesel consumption of 1,500 gallons per rig ,the savings are $___ to $_____/day-rig
• This translates to $____k to $500k in fuel savings per year per rig.
• Multiply that over a fleet of 5 rigs => $___ to $___million per year
What does a LNG fueled hydraulic fracturing application look like?
Conceptual, Confidential and Proprietary 9
Quantifying the Opportunity • Diesel Price is ~$3.50/gal and climbing
An frac all-in turnkey LNG fuel solution is $____ to $___ per DGE (cheaper than drilling on DGE basis due to higher fuel consumption)
• Assuming 80 diesel gal/hr-pump peak, 16 pump spread, 2 hour stages, 5 stages per day = 12,800 diesel gallons per day
• With an average displacement of 55%, this translates to a displacement of ~7k DGE per frac day.
• The resulting savings is $_K to $_k per Frac Day • Assuming ___Frac days a year, one would
anticipate annual fuel savings of $__ to $__ million per converted spread.
Conclusions
Safety: Success • Dedication to Safety – Practice a culture of safety through maintaining,
communicating and implementing its QHSE programs Economics: Success
• Up to $_ million savings per rig; $__ million per frac spread Operational Performance: Success
• Commercially proven, operationally reliable LNG Supply Network: Success
• Diverse supply network capable of economically and reliably serving US market
10 BUSINESS CONFIDENTIAL
NOTICE the Dancing Bear!
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www.prometheusenergy.com
Mike Fradette Business Development Manager 603.540.1025 [email protected]
Integrated LNG Fuel Solutions
Questions??
BUSINESS CONFIDENTIAL
Houston Office (HQ) Prometheus Energy Group, Inc. 10370 Richmond Ave, Suite 450, Houston, TX 77042 (o) 832.456.6500