Gate terminal Gas Access To Europe - Vopak.com · 5 Press release 18 December 2007 • Vopak and...
Transcript of Gate terminal Gas Access To Europe - Vopak.com · 5 Press release 18 December 2007 • Vopak and...
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Gate terminal
Gas Access To Europe
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Analyst Conference Call
18 December 2007 @ 13.30 hour (CET)
Jack de KreijCFO and Member of the Executive Board
Gate terminal builds first Dutch LNG terminal
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Agenda
�Press release summary
�Market demand for Dutch LNG terminal
�Gate terminal
�Launching customers
�Financial matters of attention
�Future developments
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Press release summary
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Press release 18 December 2007
• Vopak and Gasunie have taken final investment decision to build first Dutch LNG terminal with an annual throughput capacity of 9 bcm
• Estimated all inclusive project cost of around EUR 800 million
• First phase capacity of 9 bcm gas throughput, 1 jetty, 3 storage tanks of 180.000 cbm and gasification units.
• Launching customers are DONG Energy, EconGas and Essent
• DONG Energy, Essent and OMV GAS INTERNATIONAL acquire a minority equity stake of 5% each
• Other developments:
– Vopak will take part in feasibility study LNG terminal Eemshaven
– Heads of Agreement signed by Essent, Gasunie and Vopak
– Vopak acquires 25% stake in Eemshaven project
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Market demand for Dutch LNG terminal
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LNG demand worldwide
Source: CWC LNG Summit Presentation, Rome Dec. 2007
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European gas market
0
100
200
300
400
500
600
700
800
900
1000
1995 2000 2005 2010 2015 2020 2025
bill
ion
m3
24012050
European production
Existing import contracts
New pipelines
LNG under construction
Demand
Source: Gasunie
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New imports from more distant fields
• Pipelines from Russia, Iran and/or Norway
• Liquid natural gas from: Algeria, Egypt, Nigeria, Qatar, Australia and Iran
• Diversification of sources is the best way to guarantee the security of supplies
European gas market
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European LNG receiving terminals
1980 – 1998: 8 operational terminals in Europe;
1999 – 2006: 5 new terminals commissioned, 7 in construction and
expansion existing terminals; growth rate > 6% per annum
Operational LNG terminal LNG terminal under developmentStatus 2005:
Source: AIChE LNG Challenge Presentation 13 Febr. 2007
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The Netherlands – Excellent entry point
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Gate terminal
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Gate terminal ready for operations in 2011
Rationale:
Strengthen position the Netherlands for natural gas
The almostcontinuousdelivery of naturalgas to the nationalgas transmissionnetwork for the Dutch and northwestEuropean markets
The regasification
of LNG into natural
gas
The storage of
LNG as a buffer
between the
receipt and
continuous
delivery of
natural gas
The receipt of
LNG from special
LNG carriers in the
port
Secure additional long term natural gas supplies
Facilitate modern European gas markets by multi-user and open access
Terminal’s four functions
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The LNG/Natural Gas chain
The LNG / natural gas chain requires large investments and isbuilt on long-term supply, transport, and terminal contracts
Typical component capital investment cost (for 9 BCM):
1 x € 4.0B 4 x € 0.2B 1 x € 0.8B+ +
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The LNG receiving terminal
Natural Gas (NG)
Hig
h pr
ess
ure
pum
ps
Reinforced Concrete Roof
Roof Nozzles OnlySustended Ceiling with Thermal Insulation
9% Ni Inner Tank
Annular SpaceWith Perlite
Thermal Insulation
Pre - StressedConcrete Wall
Reinforced ConcreteBase Slab
Foam-GlassBottom Insulation
Pump Columns
LN
G c
arr
iers
LNG
jetty
Unlo
adin
gand v
apour
retu
rn s
yste
m
LNG
sto
rage
tank
s
with
low
pres
sure
pum
ps Low
press
ure
exp
ort s
yste
m
Reg
asi
fiers
Nat
ura
l gas
anays
is
and
mete
rs
Nat
ura
l gas
trans-
mis
sion
pipe
line
Vent or torch
Re-condensor
Main functions of the terminal:
Receipt and unloadingLNG Carriers
LNG storage Export under pressure and regasified
Liquefied Natural Gas (LNG)
Warm waterCold water drainage
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Gate terminal: the location
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Launching customers
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The launching customers
DONG Energy, Denmark3 bcm 5% equity stake
EconGas, Austria3 bcm
OMV Gas International5 % equity stake
Essent3 bcm 5% equity stake
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• Long term contracts: 20 - 25 years
• 100% fixed tariff: take or pay
• Tariffs are indexed (CBS)
• First customers are minority shareholders
Customer contract structure
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Partnership: Vopak/Gasunie/Clients/GATE
Majority ShareholdersCustomer Shareholders
Gate
terminal
42.5%
OMV GAS INTERNATIONAL
Essent DONG Energy GasunieVopak
42.5%5% 5% 5%
Limited
Partnership
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Financial matters of attention
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• Project financing to be obtained by Gate terminal in 2008
• Initial project costs around EUR 800 million
• Initial Vopak share in equity EUR 50-80 million
• Equity return aligned with market for new greenfieldinfrastructure projects in Europe
Gate terminal project financing
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Balance sheet
Gate’s impact on Vopak Financial Statement
Joint ventures
and associates
Profit & LossResult of jv basedon equity method
Cash Flow
Off Balance Sheet guarantees
Project Phase
2007-2011
Operations
beyond 2011
Joint venturesand associates
Joint venturesand associates
Only pre-OPEX
Equitycontribution
Dividendreceived
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Future developments
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Future developments
• 2008+ Increase number of customers in GATE terminal Rotterdam and expand the throughput capacity from 9 to 16 bcm
• Feasibility study second location in the Netherlands: Eemshaven
– Partners Gasunie and Essent
• Ongoing feasibility study for regional terminal in Rostock, Germany with partners Gasunie and VNG
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Questions?