LNG in North America - Louisiana Pipeliners in North America Tommy Stone ... Liquefied Natural Gas...
Transcript of LNG in North America - Louisiana Pipeliners in North America Tommy Stone ... Liquefied Natural Gas...
LNG in North America
Tommy Stone – Vice President, Operations & Engineering
Trunkline LNG Co., Trunkline Gas Co., Sea Robin P/L, Florida Gas Transmission
Lake Charles, LA
Tommy Stone – Vice President, Operations & Engineering
Trunkline LNG Co., Trunkline Gas Co., Sea Robin P/L, Florida Gas Transmission
Lake Charles, LA
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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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Rockies
Deep Gulf
$3.60 - $5.85
Arctic Gas
• Supply tightening– Demand growth– Traditional basins
in decline• New supply
must come from new areas
– But will only come at a price that supports development
• LNG has the opportunity to gain market shareLNG
LNG
Nation Needs New Sources of Supply
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LNG Value Chain, Exploration & Production
$0.6 B$2.0 B$2.0 B$1.5 B 1 Bcf/dScenario$6.1 B
$.50 – .75$.60 – 1.60$1.25 – 1.50$1.25 – 2.00 Per Unit$/Mcf$3.60 – 5.85
RegasificationShipping*LiquefactionExploration & ProductionTOTAL
Reserves 9 Tcf
Scope $0.05B
Initial drilling
$0.05B
Develop-ment
$1.4B
Trains required
2
Cost per train
$1.0B
Distance 12,000 nm
Rd. Trip Time
30 days
Ships Required
12
Cost per ship
$0.17B
Port $0.14B
Storage $0.16B
Vaporization .20B
Engineering & Other
.10B
*Shipping: West Africa to U.S. Gulf Coast.
% of Total9%33%33%25%100%
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Proven World Natural Gas Reserves
~ 4.8% of World Reserves
Proved reserves at end 2008Trillion cubic metres
Source: BP Statistical Review of World Energy, 2009
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LNG Value Chain, Liquefaction
$0.6 B$2.0 B$2.0 B$1.5 B 1 Bcf/dScenario$6.1 B
$.50 – .75$.60 – 1.60$1.25 – 1.50$1.25 – 2.00 Per Unit$/Mcf$3.60 – 5.85
RegasificationShipping*LiquefactionExploration & ProductionTOTAL
Reserves 9 Tcf
Scope $0.05B
Initial drilling
$0.05B
Develop-ment
$1.4B
Trains required
2
Cost per train
$1.0B
Distance 12,000 nm
Rd. Trip Time
30 days
Ships Required
12
Cost per ship
$0.17B
Port $0.14B
Storage $0.16B
Vaporization .20B
Engineering & Other
.10B
*Shipping: West Africa to U.S. Gulf Coast.
% of Total9%33%33%25%100%
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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)
Indo nesia
A lgeria
M alaysia
Qatar
ad & T o bago
N igeria
A ustralia
Oman
B runei
A bu D habi
USA
Libya
Egypt
Iran
B o livia
Yemen
R ussia
Venezuela
A ngo la
N o rway
P eru
Eq. Guinea
B razil
ExistingNew
IndonesiaAlgeria
MalaysiaQatar
Trinidad Nigeria
AustraliaOman
BruneiAbu Dhabi
USALibyaEgypt
IranBoliviaYemenRussia
VenezuelaAngola
NorwayPeru
Eq. GuineaBrazil
Source: G.I.I.G.N.L,
Liquefaction Capacity is Large and Will Continue to Grow
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Res./Liq. (yrs)
Growth Potential inAtlantic Basin Supply
500
1000
1500
2000
2500
Atlantic Basin Middle East Pacific Basin
Tcf R
eser
ves
0
2
4
6
8
10 Bcf/d Liquefaction
Tcf ReservesLiquefaction
1025
9.6
2,595
5.6
523
11.5
AtlanticBasin
293 1,270 125
Source: BP Statistical Review, 2007 & G.I.I.G.N.L.
3000 12
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Abundant LNG Supply
Nigeria
Angola
VenezuelaTrinidad
Algeria Libya
Norway
Middle East
Egypt
EquatorialGuinea
Middle East
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LNG Value Chain, Shipping
$0.6 B$2.0 B$2.0 B$1.5 B 1 Bcf/dScenario$6.1 B
$.50 – .75$.60 – 1.60$1.25 – 1.50$1.25 – 2.00 Per Unit$/Mcf$3.60 – 5.85
RegasificationShipping*LiquefactionExploration & ProductionTOTAL
Reserves 9 Tcf
Scope $0.05B
Initial drilling
$0.05B
Develop-ment
$1.4B
Trains required
2
Cost per train
$1.0B
Distance 12,000 nm
Rd. Trip Time
30 days
Ships Required
12
Cost per ship
$0.20B
Port $0.14B
Storage $0.16B
Vaporization .20B
Engineering & Other
.10B
*Shipping: West Africa to U.S. Gulf Coast.
% of Total9%33%33%25%100%
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LNG FLEET HISTORY CAPACITY
LNG Vessel Historical Capacity
0
50,000
100,000
150,000
200,000
250,000
300,000
1970s 1980s 1990s 2000s Present FutureConstruction Era
Vess
el S
ize
(Cub
ic M
eter
s)
Avg.Capacity (Cu/M)
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LNG VESSEL COST
Avg. Vessel Cost ($MM)
$0
$50
$100
$150
$200
$250
$300
1970s 1980s 1990s 2000s Present Future
Avg. Cost ($MM)
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LNG Vessel Fleet LNG Vessel Fleet
• 328 Vessels - World Fleet • 61 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
Membrane Tank DesignMembrane Tank DesignMembrane Tank Design MossMossMoss
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LNG/C LNG/C –– Physical SizePhysical 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
ProjectProject Depth = 40 feetOuter Bar = 800 ft. WidthInner bar = 400 ft. Width
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LNG Value Chain, Regasification
$0.6 B$2.0 B$2.0 B$1.5 B 1 Bcf/dScenario$6.1 B
$.50 – .75$.60 – 1.60$1.25 – 1.50$1.25 – 2.00 Per Unit$/Mcf$3.60 – 5.85
RegasificationShipping*LiquefactionExploration & ProductionTOTAL
Reserves 9 Tcf
Scope $0.05B
Initial drilling
$0.05B
Develop-ment
$1.4B
Trains required
2
Cost per train
$1.0B
Distance 12,000 nm
Rd. Trip Time
30 days
Ships Required
12
Cost per ship
$0.17B
Port $0.14B
Storage $0.16B
Vaporization .20B
Engineering & Other
.10B
*Shipping: West Africa to U.S. Gulf Coast.
% of Total9%33%33%25%100%
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0.01.53.04.56.07.59.0
10.512.013.515.016.5
Bcf
/d
2002 2008
GreeceTurkeyBelgiumItalySpainFranceNorth America
North America
FranceSpain North
America
France
Spain
Italy
• North America becomes much more significant in the global LNG community
Atlantic Basin Regasification Capacity Growing
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LNG Imports Relative to U.S. Demand
Quotes from EIA Energy Outlook 2006
• “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”0%
2%
4%
6%
8%
10%
12%
2000 2001 2002 2003 2004 2005 2006 2007 2015E
Percent of U.S. Demand
Source: EIASource: EIASource: EIA
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Distrigas, TractebelEverett, MA
Current ExpandedSendout:(MMcf/d) 1,035 n/a
Storage:(Bcf) 3.4 n/a
Cove Point LNG, DominionCove Point, MD
Current ExpandedSendout:(MMcf/d) 1,800 n/a
Storage:(Bcf) 14.6 n/a
Elba Island, El PasoSavanna, GA
Current ExpandedSendout:(MMcf/d) 1,200 2,100
Storage:(Bcf) 7.3 15.7
Trunkline LNG, Panhandle EnergyLake Charles, LA
Sustained PeakSendout:(MMcf/d) 1,800 2,100
Storage:(Bcf) 9.0 9.0
SummaryTotal Existing U.S. Regasification
Current ExpandedSendout:(MMcf/d) 13,385 16,935Storage:(Bcf) 79.3 96.6
TLNG Offers Great Flexibility with All Domestic Terminals
Cameron LNG, SempraCameron, LA
CurrentExpandedSendout:(MMcf/d) 1,500 2,650
Storage (Bcf): 16.9 n/a
Sabine Pass, CheniereSabine Pass, LA
Current ExpandedSendout:(MMcf/d) 4,000 n/a
Storage (Bcf): 16.8 20.1
Freeport LNG, FreeportFreeport, TX
Current ExpandedSendout:(MMcf/d) 1,750 3,250
Storage (Bcf): 11.3 16.9
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Source: FERC
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Source: FERC
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Source: FERC
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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 Energy0105-005
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Texas/Louisiana LNG Projects
Approved by FERC or MARAD/USCGApproved by FERC or MARAD/USCG
Sabine Pass LNGIn-service date: April 2008 – Mid 2009Sendout: 4.0 Bcf/dDeveloper: CheniereCapacity Holder: Total & ChevronTexaco
Sabine Pass LNGIn-service date: April 2008 – Mid 2009Sendout: 4.0 Bcf/dDeveloper: CheniereCapacity Holder: Total & ChevronTexaco
*Freeport LNG Development is composed of a General Partnership which has management control, but zero economic interest (Michael Smith 50% and ConocoPhillips 50%) and Limited Partners which have zero management interest, but have economic interest (Michael Smith 60%, Cheniere 30% and Osaka 10%).
Creole TrailIn-service date: TBDSendout: 3.0 Bcf/dDeveloper: CheniereCapacity Holder: TBD
Creole TrailIn-service date: TBDSendout: 3.0 Bcf/dDeveloper: CheniereCapacity Holder: TBD
Energy BridgeIn-service date: 3/2005Sendout: 0.5 Bcf/dDeveloper: Excelerate Energy
Energy BridgeIn-service date: 3/2005Sendout: 0.5 Bcf/dDeveloper: Excelerate Energy
Freeport LNGIn-service date: April 2008Sendout:1.5 Bcf/d (expand to 3.0 Bcf/d)Developer: Freeport LNG Dev.*Capacity Holder: Dow & ConocoPhillips
& Mitsubishi
Freeport LNGIn-service date: April 2008Sendout:1.5 Bcf/d (expand to 3.0 Bcf/d)Developer: Freeport LNG Dev.*Capacity Holder: Dow & ConocoPhillips
& MitsubishiGolden Pass
In-service date: 2010Sendout: 2 Bcf/dDeveloper: ExxonMobil
Golden PassIn-service date: 2010Sendout: 2 Bcf/dDeveloper: ExxonMobil
Cameron LNGIn-service date: July 2009Sendout: 1.5 – 2.65 (Exp) Bcf/dDeveloper: SempraCapacity Holder: ENI
Cameron LNGIn-service date: July 2009Sendout: 1.5 – 2.65 (Exp) Bcf/dDeveloper: SempraCapacity Holder: ENI
Trunkline LNGIn-service date: 2006
(expansions)Sendout: 1.8 Bcf/dDeveloper: Southern UnionCapacity Holder: BG LNG
Trunkline LNGIn-service date: 2006
(expansions)Sendout: 1.8 Bcf/dDeveloper: Southern UnionCapacity Holder: BG LNG
Corpus Christi Projects (3)In-service dates: TBDSendout: 4.7 Bcf/d (total)Developers: 4Gas, Occidental
Corpus Christi Projects (3)In-service dates: TBDSendout: 4.7 Bcf/d (total)Developers: 4Gas, Occidental
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Trunkline LNG Base Facilities• 1.8 Bcf/d of sustained sendout
– 2.1 Bcf/d of peaking sendout• 9.0 Bcf of Storage
Everett24%
Lake Charles33%
Lake Charles33%
Elba Island22%
Elba Island22%
Cove Point19%
Cove Point19%
LNG Imports by TerminalJan – Dec 2007
Total = 771 Bcf/yr
*Source: US Department of Energy.
Shell5%
BG LNG55%
BG LNG55%
Suez LNG24%
Suez LNG24%
BP7%BP7%
LNG Imports by CompanyJan – Dec 2007
3.4% of U.S. Gas DemandExcelerate2%
Excelerate2%
Statoil7%
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TRUNKLINE LNG – LAKE CHARLES, LOUISIANA
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LNG Value Chain – Total Project
$0.6 B$2.0 B$2.0 B$1.5 B 1 Bcf/dScenario$6.1 B
$.50 – .75$.60 – 1.60$1.25 – 1.50$1.25 – 2.00 Per Unit$/Mcf$3.60 – 5.85
RegasificationShipping*LiquefactionExploration & ProductionTOTAL
Reserves 9 Tcf
Scope $0.05B
Initial drilling
$0.05B
Develop-ment
$1.4B
Trains required
2
Cost per train
$1.0B
Distance 12,000 nm
Rd. Trip Time
30 days
Ships Required
12
Cost per ship
$0.17B
Port $0.14B
Storage $0.16B
Vaporization .20B
Engineering & Other
.10B
*Shipping: West Africa to U.S. Gulf Coast.
% of Total9%33%33%25%100%
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REGASIFICATION PROCESSGASLIQUID
LNGLNGSTORAGESTORAGETANKSTANKS
PIPELINEPIPELINECOMPRESSORCOMPRESSOR
VAPORIZERSVAPORIZERS
DESU
PERH
EATE
R
DESU
PERH
EATE
R
BOILBOIL--OFFOFFCOMPRESSORCOMPRESSOR
PIPELINEPIPELINERECO
NDEN
SER
RECO
NDEN
SER
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Trunkline LNG - Infrastructure Enhancement Project (IEP)