Höegh LNG The floating LNG services provider · LNG: Liquefied Natural Gas SRV: Shuttle and...
Transcript of Höegh LNG The floating LNG services provider · LNG: Liquefied Natural Gas SRV: Shuttle and...
Forward looking statements
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This presentation contains forward-looking statements which reflects management’s current expectations, estimates and projections about
its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may
occur in the future are forward-looking statements. Words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,”
“forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue” or the negative of these terms and similar expressions are
intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to
certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes
and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue
reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Höegh LNG
undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or
otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changes
in LNG transportation and regasification market trends; changes in the supply and demand for LNG; changes in trading patterns; changes
in applicable maintenance and regulatory standards; political events affecting production and consumption of LNG and Höegh LNG’s
ability to operate and control its vessels; change in the financial stability of clients of the Company; Höegh LNG’s ability to win upcoming
tenders and securing employment for the FSRUs on order; changes in Höegh LNG’s ability to convert LNG carriers to FSRUs including
the cost and time of completing such conversions; changes in Höegh LNG’s ability to complete and deliver projects awarded; increases in
the Company’s cost base; changes in the availability of vessels to purchase; failure by yards to comply with delivery schedules; changes
to vessels’ useful lives; changes in the ability of Höegh LNG to obtain additional financing, in particular, currently, in connection with the
turmoil in financial markets; the success in achieving commercial success for the projects being developed by the Company; changes in
applicable regulations and laws; and unpredictable or unknown factors herein also could have material adverse effects on forward-looking
statements.
Höegh LNG – a fully integrated floating LNG service provider
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Production Shipping Regasification Distribution Exploration
LNG carriers LNG regasification vessels FLNG
LNG: Liquefied Natural Gas
SRV: Shuttle and Regasification Vessel
FSRU: Floating Storage and Regasification Unit
Own FEED for FLNG design
Pre-feed agreement for an
FLNG at Tamar field in Israel
Principle approval for a FLNG
project in Papua New Guinea
5 carriers in operation
1 carrier to be delivered July
2012 (“LNG Libra”)
Purchase option for 1 carrier
with delivery 2H2013
(“STX Frontier”)
2 FSRUs in operation
3 FSRUs on order
Options for 2 additional FSRUs at firm price and delivery date
Option for 1 additional FSRU at terms to be determined
1 conversion candidate (“LNG Libra”)
Long-term contract coverage secures stable cash flow
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* Based on full opex-pass through and 365 day basis
** Spread between charter in/out
Name Ownership
Capacity
(m3) Built T/C ($/d) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043
Matthew - 126 538 1979 - Ship management ageement with GDF Suez
STX Frontier - 153 600 2010 2 000** Purchase option @ USD 226m (100% basis) or USD 194m (50% basis)
LNG Libra 100 % 126 400 1979 > 80 000 Delivery in July 2012
Norman Lady 50 % 87 600 1973 34 500 Gas Natural
Arctic Lady 50 % 147 208 2006 70 000*
Arctic Princess 34 % 147 208 2006 70 000*
GDF Suez Neptune 50 % 145 130 2009 110 000*
GDF Suez Cape Ann 50 % 145 130 2010 110 000*
New FSRU 1 100 % 170 000 2013 > 125 000 Perusahaan Gas Negara
New FSRU 2 100 % 170 000 2014 N/A Klaipedos Nafta
New FSRU 3 100 % 170 000 2014 N/A Constr.
Repsol
ExtensionLN
G C
arr
iers
Constr.
Option 5+5Constr.
Option 5+5
Option 5+5
GDF Suez
GDF Suez
LN
G R
eg
asific
atio
n V
esse
ls
Total Option 5+5
Statoil Option 5+5N
WS
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Status for Klaipedos Nafta FSRU
Project on time and on budget
10 year time charter signed, and all subjects lifted, in March 2012
Höegh LNG's scope is the FSRU. Steel cutting for FSRU in September 2012.
Delivery ex-yard in March 2014. Start of operations around October 2014
Klaipedos Nafta will build jetty and pipeline. Pipeline FEED was led by Ardynas and
completed in March 2012. Pipeline award will be in end of August 2012, construction
to start in January 2013 and finish in December 2013. Contract award for jetty will be
in end of August 2012, with construction starting in December 2012
Klaipedos Nafta negotiating LNG supplies
Project financing well under way. DNB appointed as structuring bank, on-going
discussions with commercial banks and ECAs. Financial close in Q3 2012.
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Status for Perusahaan Gas Negara FSRU
20 year lease agreement between PGN and Höegh LNG signed in January 2012
19 March 2012 government decides to move FSRU from Medan to Lampung, Sumatra
26 March 2012 Höegh LNG informed by Perusahaan Gas Negara (PGN)
No change to specifications of FSRU, but change of mooring design
PGN covers all costs and risks associated with change of location
No changes to the agreement and Q1 2014 remains contractual start-up date
Project financing on track. Appointed two lead-banks, BTMU and Standard Chartered,
on-going discussions with commercial banks and ECAs. Complete financing in Q4 2012
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Source: Höegh LNG
• Price comparison on different fuels displayed in $/MMBTU
• Natural gas (NBP, HH and Japan) is the cheaper alternative to Europe Brent, Diesel No.2 (US Gulf) and
MGO (Rotterdam)
Main driver for new LNG import is the price of gas
LNG demand growth remains very positive
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LNG demand to double from 2010 until
2025
Demand driven by Asia-Pacific region
followed by Europe
Demand increase driven mainly by
additional power generation and the shift
in feedstock from oil, coal and nuclear to
natural gas
Incremental demand post 2016 to be
supplied mainly from Australia and North
America
Source: Wood Mackenzie
LNG supply growth backed by committed liquefaction projects
Australia is the "base load" for new LNG
production post 2015 with approximately 50%
of new liquefaction capacity
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Source: Wood Mackenzie, Fearnley LNG
Country Project Name FID Start-Up MTPA
Algeria Gassi Touil Taken 2013 4.7
Papua New Guinea PNG LNG Taken 2014 6.6
Angola ALNG Taken 2012 5.2
Australia Australia Pacific Taken 2015 4.5+4.5
“ Browse 2013 2018 4.0+4.0
“ Gladstone Taken 2015 7.8+10.0
“ Gorgon Taken 2014 5.0+5.0+5.0
“ Ichtys Field Taken 2016 4.2+4.2
“ Pluto Taken 2012 4.8
“ Prelude Taken 2016 3.5
“ Queensland Curtis Taken 2014 4.25+4.25
“ Weatstone Taken 2015 4.4+4.4
Indonesia Tangguh 3 2012 2015 3.8+3.8
Nigeria Brass 2012 2016 5.0+5.0
“ NLNG 2012 2016 4.7
Papua New Guinea Liquid Niguini 2012 2014 2.0
TOTAL 90-125
Liquefaction capacity (nominal)
0
100
200
300
400
500
600
700
2005 2010 2015 2020 2025
mmtpa
Asia Pacific Europe & Middle East Africa America
North America – Proposed liquefaction projects – "The Upside"
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Source: Cheniere, EIA, Platts, CSUG
APPROVED
Potential US Export Facilities
Name Capacity
MTPA Start-up
Sabine Pass 8+8 2015
Freeport 4,4+4,4+4,4 2015
Cameron 4+4+4 2016
Cove Point 7,8 2016
Jordan Cove 9 2017
Lake Charles 5+5+5 2018
Total 61
This represents 13 % of annual US
gas production - Manageable
Potential Canadian Export Facilities
Name Capacity
MTPA Start-up
Kitimat 10 2015
Douglas Island 2 NA
Prince Rupert
Island 13 NA
Texada Island 3,8 NA
Total 29
This represents 27 % of annual
Canadian gas production - Manageable
Around 30 FSRU regasification projects in pipeline worldwide Dynamic market
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Source: Höegh LNG
Around 30 projects in pipeline
16 projects in Asia/Middle East
6 projects in South America
7 projects in Europe/Africa
HLNG has several bids in process
Existing
Under construction / awarded
Potential
Existing
Under construction / awarded
Potential
Owner Vessels Customers*
Höegh LNG 2+3 GDF Suez, Perusahaan
Gas Negara, Klaipedos
Nafta
Golar LNG 3+3 Petrobras (2), Pertamina,
Dubai Power Authority
Excelerate 8+1 YPF (2), Kuwait Oil
Corporation, Petrobras
* Projects in operation or awarded
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FSRU contract award opportunities
Project Bid submitted Selection Contract Start-up New / Conversion
Indonesia x Q2 2012* Q2 2012* Q3 2013* Conversion
Chile 1 x Q2 2012 Q3 2012 Q4 2014 New
Chile 2 x Q2 2012 Q4 2012 Q3 2015 New
Middle East Q4 2012 Q3 2013 Q2 2015 New
India 1 Q4 2012 Q1 2013 Q4 2014 New
India 2 Q4 2012 Q1 2013 Q4 2014 New
* Indonesia project (Central Java) original schedule delayed, still Q2 decision
Estimated timing of near-term FSRU project awards
Global LNG fleet overview
14 FSRUs in fleet
6 FSRU newbuildings on order plus 2
options to change from LNGC to FSRU
364 LNG vessels in fleet
74 newbuildings on order (20%)
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Type Delivered Newbuildings
on order
Under
conversion Total
LNGC 364 74 - 438
FLNG - 1 - 1
FSRU 14* 6** 1 21
Total 378 81 1 460
LNGC fleet FSRU fleet
* 10 newbuildings and 4 conversions
** In additional to six firm FSRU orders globally, Golar LNG has options to convert two LNGC orders to FSRUs
Source: Wood Mackenzie, LNG Unlimited, Fearnley LNG
Floating LNG production – the next growth segment
Country Location of field Main sponsors Status
Australia Prelude FID achieved – under construction
Cash Maple On-going pre-FEED studies
Sunrise Pending resolution with Timor, under review
Bonaparte On-going pre-FEED studies
Brazil Santos FID likely delayed until or post 2013
Colombia Caribbean coast Service agreement signed
Indonesia Abadi FEED to start end 2012
Israel Tamar On-going pre-FEED studies
Malaysia Sarawak Kanowit FEED completed
Sarawak Rotan On-going pre-FEED studies
Papua New Guinea Gulf FLNG Under review, NEC approval not received
Gulf of Papua Pre-FEED completed, NEC approval received –
gas allocation and final approval in process
Summary
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Full contract coverage of all existing assets
Firm contracts for two new FSRUs, third
new FSRU currently open
LNG market shows strong sustainable long-
term growth, the main driver is natural gas
for power generation
FSRU market will continue to grow quicker
than the rest of the market
Höegh LNG has a strong competitive
position in a high barrier to entry market
with attractive returns