LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward...
Transcript of LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward...
![Page 1: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/1.jpg)
LNG – Way Forward for Diversification
of Energy Supply: Lithuania’s Case Study
Platts 7th European Gas Summit
September, 2013
Vienna
Rokas Masiulis
CEO, Klaipėdos Nafta
![Page 2: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/2.jpg)
Content
2
1. Gas supply challenges in the Baltics
2. Introduction of the LNG terminal in Lithuania
3. Commercial possibilities of LNG in the region
![Page 3: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/3.jpg)
3
1. Lithuania’s Country Profile
• Population: 3.0m
• Land area: 65,300 sq. km
• Capital city: Vilnius (pop. 0.54m)
• Ethnic groups: Lithuanian (84.2%)
• Polish (6.6%)
• Russian (5.8%)
• Others (3.4%)
• Official language: Lithuanian
• Currency: Litas (LTL), pegged at 3.4528 LTL/EUR
• GDP 2011: € 32,9bn
• GDP per capita: € 11 000
• Neighbors Latvia (land border – 588 km)
• Byelorussia (border – 677 km)
• Poland (border – 104 km)
• Russia (Kaliningrad) (land border – 255 km)
![Page 4: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/4.jpg)
4
1. Gas Supply Challenges
THREE main challenges
Market
Source
Price
![Page 5: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/5.jpg)
5
1. Gas Supply Challenges
• Currently there is no gas
market between the Baltic
states and Finland
• The interlinks between
countries are weak
• There are major
infrastructure projects to
enhance the situation
Existing pipeline
Future projects
Annual gas
consumption
Market
Source
Price
Project list
1. Baltic Interconnection
2. Interconnection Lithuania-
Poland
3. Underground Gas Storage
in Syderiai
4. LNG terminal in Klaipėda
![Page 6: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/6.jpg)
6
1. Gas Supply Challenges
• Currently only one source of
gas – extreme dependency
on a single supplier
• Low energy security level on
the regional scale
• One of the last “Energy
Islands” in Europe
Market
Source
Price
![Page 7: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/7.jpg)
7
1. Gas Supply Challenges
Market
Source
Price
Source: European Commission
Price in €/MWh, July 2013
Rank Country
1. Lithuania
2. Czech Republic
3. Greece
4. Latvia
5. Estonia
TOP 5
Comparison of EU wholesale gas prices
![Page 8: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/8.jpg)
2. Impact
8
Market
Source
Price
Unrestricted access
will spur competition
The terminal will
help to diversify
energy sources
Ensures security of
energy supply
Import prices will
reflect the global
market price level
![Page 9: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/9.jpg)
2. FSRU Independence
9
Tech specs
Technology FSRU
Location Southern part of Klaipėda
sea port
Supplier Hoegh LNG
Storage
capacity 170 000 m3
Loading
capacity
9000m3/h through flexible
hoses
Annual
capacity
Up to 4 bcm of regasified
NG, up to 11 mln. m3 per
day
![Page 10: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/10.jpg)
2. FSRU Independence
10
Tech specs
Leaving
shipyard February, 2014
Manufacturer Hyundai Heavy Industries
Flag-Registry Singapore
Class Det Norske Veritas
Length 294 m
Width 45 m
Draught 12.6 m
![Page 11: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/11.jpg)
11
Construction of FSRU
“Independence” Construction Procurement
2011 2012 2013 2014 2015
Construction of the Jetty
Construction of the
Pipeline
Start of operations – 3rd of December
Arrival
Operation
Testi
ng
Creation the Terminal
Operator and Regulation
Construction Procurement
Construction Procurement
Law on LNG Terminal
License
• The LNG terminal will be
fully operational since the
3rd of December, 2014
• Project timeframe – less
than 3 years
• Such speed is possible
because of:
- the FSRU technology
used
- agreement with FSRU
supplier – Hoegh LNG
- creative project
planning
- government support • Terminal usage manual
• Volume capacity auction
The terminal will open access for gas trading companies
2. Project Timeline
![Page 12: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/12.jpg)
2. Participating Companies
12
LNG Terminal
Infrastructure Gas Trading
Key financials (2012, mln, EUR)
Revenue 40,2
EBITDA 20,2
EBITDA margin 50%
Assets 129
Key financials (2012, mln, EUR)
Revenue 811
EBITDA 157
EBITDA margin 19,4%
Assets 2.984
![Page 13: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/13.jpg)
2. Financing of LNG Infrastructure
13
Required financing Financing sources
130 mln. EUR
• Infrastructure
• Project management
43 mln. EUR
FSRU guarantee
130 mln. EUR
• Loan from EIB (signed,
87mln. EUR with state
guarantee)
• NIB, commercial banks
• AB “Klaipėdos nafta“ own
funds
• Compensation via gas
transmission tariff
43 mln. EUR
Guarantee from a commercial bank
Total: 174 mln. EUR Total: 174 mln. EUR
Costs of FSRU are channeled through gas transmission tariff
![Page 14: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/14.jpg)
3. Business Model
14
Reserved capacity supply 13%
Available for the market
87%
LNG Terminal
Infrastructure
Gas Trading
Sells regasification
capacity to companies
13% of capacity is
reserved for 5 years
for “minimum
utilization” of the
Terminal
Capacities of LNG Terminal will be open for suppliers to fill demand in:
• Domestic Lithuanian market
• Baltic market (+Finland)
• Small scale activities
Up to 4 bcm
of NG annually
Gas trading volume capacity
![Page 15: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/15.jpg)
3. Small-scale LNG
15
LNG Feeder Vessel
LNG trading
Infrastructure for small-scale LNG activities
The LNG terminal will offer business
opportunities:
LNG storage
![Page 16: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/16.jpg)
3. Value Proposition
16
1. The first full scale terminal in the Baltics and Nordic countries
operational from the end of the next year
2.
3.
4.
5.
Operational all-year round at an ice-free port
Unrestricted access will ensure competition on national and, possibly,
on regional level
Infrastructure for small-scale LNG activities
More than 40 years of safe and efficient terminal operational
experience
![Page 17: LNG Way Forward for Diversification of Energy Supply ... · PDF fileLNG – Way Forward for Diversification of Energy Supply: ... energy sources ... 10 Tech specs Leaving](https://reader031.fdocuments.in/reader031/viewer/2022022504/5ab46bba7f8b9a156d8bd9b6/html5/thumbnails/17.jpg)
Contacts:
Rokas Masiulis
CEO
SC Klaipėdos nafta
Buriu 19, P.O.Box 81
LT-91003 Klaipeda
Lithunania
Phone: +370 (46) 391772
Fax: +370 (46) 311399
www.oil.lt
www.sgd.lt
Thank you for your attention.