ENERGY CITY BATAAN

AG&P | PNOC-AFC | SKM | BSI

ENERGY CITY BATAANFEASIBILITY STUDY PRESENTATION24th April 2013

AG&P ENERGY CITY BATAAN

INTRODUCTION

Energy CityAn LNG Terminal with Power Generation

and Petrochemical facilities at Bataan

Introducing the AG&P/SKM/BSI Team:

Timothy Comeau - AG&PAlastair Moffat - SKM

Robert Cuthbertson - SKMMarcial Ocampo - SKM

Emmanuel Alterejos - BSIMylanie Panganiban - BSI

Mia ??? - BSI


CONTENTS

1. Philippines Gas Development Plan2. The Energy City Concept3. Site Layout4. Technical Description5. Schedule6. Cost Estimates7. Environmental Impact Statement8. Next Steps9. Summary


PHILIPPINES GAS DEVELOPMENT PLAN

• BATMAN 1• BATMAN 2• BATCAV

Government Plan

• Transport• Industrial• Commercial

Benefits

• Alternate Energy Supply to Malampaya Pipeline

Strategic Storage


CONTENTS

1. Philippines Gas Plan2. The Energy City Concept3. Site Layout4. Technical Description5. Schedule6. Cost Estimates7. Environmental Impact Statement8. Next Steps9. Summary


ENERGY CITY CONCEPT

Petro-chemicals


LNG CUSTOMERS

3 x Gas Turbine Power Stations

3 x Petrochemical Plants

Undersea Pipeline

• 40km Subsea Pipeline• Operating Pressure ~150bar• Line-pack for Power Stations (~2hr)• 600mm nominal diameter

Pipeline to Manila and Cavite Industrial Users

CNG Busesfor Transport

Bataan LNG Terminal

• Landing Jetty• Cryogenic Storage• Regasifaction Units

Regional Distribution Network


PROPOSED STAGES OF DEVELOPMENT

LNG Storage

FSRU/FSUs

FSRU/FSUs4 x Tanks

Onshore Storage

8 x tanksOnshore Storage

* FSRU = Floating Storage Regasification Unit

Power Generation

20 MW Recip Gas Engines

[To partially dispose of boil of gas]

20 MW Recips 2,400MW CCGT

20 MW Recips2400MW CCGT + 200 MW OCGT

Regasification

On-board Floating Regasification Units

[may require re-liquefaction plant

in year 1]

2 x Shore-Based Regasification

Units

3 x Shore Based Regasification

Units

Other Gas Use

CNG Pipelines1 x Petro-Chemical

Plant


Plant


Plant Regional Distribution

Stage 1CompleteJun 2015

Stage 2Complete

2020

Stage 3Complete

2025


PROJECT DEVELOPERS

AG&P to take lead role

Final selection of participants in Q3 2013


CONTENTS



SITE PHOTOGRAPHS


SITE LAYOUT - FULLY DEVELOPED BY 2025


SITE LAYOUT - PHASE 1 & 2 COMPLETE BY 2020


SITE LAYOUT - PHASE 1 & 2 ONSHORE WORKS


SITE LAYOUT - PHASE 1 & 2 POWER ISLANDS


SITE LAYOUT - PHASE 1 JETTY


SITE LAYOUT


FEATURES OF LAYOUT

Power Station close to seawater access

Regas Units close to steam turbine heat source

Storage tanks at rear in secure protected area

Compact layout to reduce footprint

Switchyard provides buffer for local community


CONTENTS



GAS IMPORTS

Regas Units sized to provide sufficient Natural Gas

Landing Jetty has cryogenic unloading equipment

Double containment Storage Tanks provide operating

reserve

Floating Storage can provide early deployment

Typical LNG Carrier Volume: 150,000m³

Floating Storage Unit Volume: 140,000m³

Onshore Tank Volume: 180,000m³

Regas Unit Capacity for 1200 MW

3,800 m³/hr


IMPACT ON EXISTING JETTY

Note 4: Jetty extension length determined after bathymetry study


LNG STORAGE TANKS

• 150,000 m³ to 180,000 m³ required for 2400 MW power station operating volume

• Strategic reserve of 500,000 m³ provides 1 month emergency supply


LNG STORAGE VS. USAGE


BOG: BOIL OFF GAS ISSUES

• Storage of LNG is not a static process• LNG slowly heats up and will vaporise into a gaseous

state• This is known as BOG (boil off gas)• For older LNG carriers, this rate of BOG loss typically

ranges from 0.15 to 0.25 per cent of cargo per day• Based on an average rate across the four vessels of

0.2 per cent of cargo per day, the BOG loss isapproximately 1,000m3 of LNG per day or 20 per centof the entire cargo every 100 days.

• At this rate approximately 6% of the total LNG storagecapacity evaporates each month.


LNG REGAS UNITS

Floating Regas

Onshore Regas


POWER STATIONSStage 1

1,200MW

Stage 2 1,200MW

Stage 3 200MW

Total Capacity 2,600MW

Featureso 400 MW 60Hz H-Class Single Shaft Combined

Cycle Gas Turbines (CCGT)o 50 MW Open Cycle Gas Turbine peaking planto Developed by IPPo LNG Cooling Circuit

Issueso Sea Water for Coolingo Natural Gas Line-Packo Grid Connection

Parameter ValueNet Heat Rate [LHV] 6,175 kJ/kWhNet Efficiency [LHV] 58.3 %Capacity Factor 80%


FUTURE OPPORTUNITIES

LNG Barge Transhipment

• VTAS (Negros)• Cebu• Mindanao• Visayas• Panay

Co-Located Petrochemical Industries

• Required electrical energy• Ready gas supply• Heat and cooling


PIPELINE ROUTES

2 Offshore Optionso BATCAV – 40km to Caviteo BATMAN-NEW – 50km to Manila

Feasibility Studyo Feasibility to consider both options

o Routeso Costso Landing location

Pre-feasibility Studyo Eliminated BATMAN 2 – 140km onshore

o High costo Complex land acquisition


GAS PIPELINE LINE-PACK

• The Gas Turbines require gas at 40 bar

• The turbines load an unload rapidly

• The regasification units have a steady output with slow reaction times

• There needs to be a gas buffer between the two, typically this is provided by a gas network

• However, the BATCAV/BATMAN-NEW pipelines can be designed to provide this buffer

• Two hour reserve with a one hour forecast despatch regime would suffice

Operating Pressure: 80 bar ±20 bar

Pipeline Length: 40 km

Pipeline Diameter: 24” (600 NB)

Reserve Energy: 2hrs at 1200 MW


GRID CONNECTION


CONSTRUCTION CONTRACTING STRATEGY

EPC/EPCM

• Power Stations• Storage Tanks• Regas Units• Gas Pipelines• Switchyard• Transmission Lines• Subsea Powerline• Onshore Receiving

Facility

D&C

• Jetty• Site Facilities


CONSTRUCTION METHODS

Emphasis on modular construction by AG&P

Philippines for fast delivery of Facility

Maximum integrationof heat and cooling processes for high

cycle efficiency

Double containment LNG storage vessels

for efficiency and safety

Common Site Services controlled by Energy City, attractive to co-locators wanting gas


MODULAR CONSTRUCTION EXAMPLE 1


MODULAR CONSTRUCTION EXAMPLE 2


STRATEGIC STORAGE: LNG VS. DISTILLATE

Preferred storagefor long-term reserves

Dual fuel Gas Turbines more expensive and have

NOx issues

Single Fuel Gas Turbine with well-controlled

emissions

Storage Losses(BOG)LNG

Distillate


CONTENTS



SCHEDULE

AP

R 2

013

JUN

201

4

JAN

201

7


SCHEDULE


CONTENTS



CAPEX AND OPEX COST ESTIMATES

Use of Funds Source of Funds

USD M % USD M %Soft Costs EquityPredevelopment Fees & Expenses 9.7 0% AG&P & JV Partners 1,873.7 30%

Hard Costs DebtCivil Works 155.0 2% Tranche1 2,186.0 35%Phase 1 Tranche2 2,186.0 35%

Jetty and Unloading Facilities 355.0 6% Total Debt 4,371.9 70%Materials Jetty 33.0 1%Reciprocating Gas Engine Power Station 24.0 0%CNG Pipeline 205.0 3%

617.0 10%Phase 2

Petrochemical Plant 1,000.0 16%LNG Tanks & Regasification 320.0 5%Unloading Facilities (LNG jetty mounted) 20.0 0%Power Station A 1,260.0 20%Cooling Water Channel 165.0 3%Switchyard 17.3 0%Energy City to Limay Connection 2.6 0%3rd 230kV Circuit 16.5 0%

2,801.4 45%Phase 3

LNG Tanks & Regasification 495.0 8%Power Stations B&C 1,260.0 20%

1,755.0 28%Miscellaneous CostsContingency 907.5 15%

Total Use of Funds 6,245.6 100% Total Source of Funds 6,245.6 100%


CONTENTS



ESIA

• Environmental Impact Statement

AG&P

• Social Impact Assessment

PNOC

• Environmental Compliance Certificate

PNOC

ECC forNaphtha Cracker

ECC for Energy City

New CriteriaCO2 emissions

CO LimitsSOX LimitsNOX Limits

Cooling Water Temperature


SOCIAL IMPACTS

Switchyard acts as buffer zone

Lamao Town Area

• Noise• Traffic• Visual• Emissions


EIA - CRITICAL PATH FOR THE PROJECTII. Conduct Baseline Sampling 19 days 29-Apr-13 8-Jun-13

1 Physico-chemical componentAmbient Air Quality 10 days 29-Apr-13 8-May-13Soil quality 3 days 29-Apr-13 1-May-13Surface Water 2 days 29-Apr-13 30-Apr-13Ground/sprilng water 3 days 29-Apr-13 1-May-13Marine water 2 days 29-Apr-13 30-Apr-13

2 Biological Component 7 days 1-May-13 7-May-133 Traffic Count 5 days 29-Apr-13 3-May-134 People Component

IEC, FGD, Perception Survey 8 days 1-Jun-13 8-Jun-13

III. Laboratory Anaysis BSI 15 days 9-May-13 23-May-13

IV. Report Preparation 69 days 22-Apr-13 29-Jun-131 Thermal Plume Modeling 50 days 22-Apr-13 10-Jun-132 Air Dispersion Modeling 10 days 22-Apr-13 2-May-13 (Note: tentative;modelling will start once the data needed complied by SKM)3 Submission Field Work Report 1 day 15-Jun-13 15-Jun-134 EIA Report Writing 50 days 11-May-13 29-Jun-13

V. Submission of Draft EIA BSI 1 day 30-Jun-13 30-Jun-13

VI. Review of the EIA PAFC / BSI 60 days 1-Jul-13 30-Aug-13

VII. Release of the Certificate of Compliance PAFC 1 day 31-Aug-13 31-Aug-13

BSI/PAFC/PIP-MMT

BSI


CONTENTS



NEXT STEPS

Market Study

Financial Model

Vendor Input Costs

Project DevelopmentStudy

Gas Contracts

Land Access and site information


PNOC-AFC SUPPORT FOR DESIGN DATA

Topographical Survey of Facility Area that sets out key benchmarks and boundaries/fence linesGeotechnical Survey of site and jetty areaGeotechnical survey of BATCAV and BATMAN-NEW pipeline routesGeotechnical Survey of the undersea power cable routesBathymetric Survey of Jetty and CW areaBathymetric Survey of the undersea gas pipeline and power cable routesHydrological Survey of groundwater and river flowsUpdated PSSE Model for South Luzon Grid from NGCPWave and Current models for the facility shoreline and jetty environsExisting jetty studies for tsunami, navigation advice and ship handling investigations3D Topographical Survey data using 12D softwareThermal Plume modelling for CW intake and outfall

A long list but...


CONTENTS



SUMMARY

Ideal Location with co-located Industry

Planned Integrated Facility

High-Efficiency Least-Cost LNG in Market

Meeting of Philippine Energy Targets

Long-Term Energy Security of Supply

Opportunity for PNOC to Participate

BENE

FITS


QUESTIONS

ENERGY CITY AT PNOC-AFC BATAAN

SALAMAT PO


NOTES

ENERGY CITY BATAAN

Documents

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