Investment Opportunity LNG Terminal - Sindh Board Of ... · PDF fileInvestment Opportunity LNG...
Transcript of Investment Opportunity LNG Terminal - Sindh Board Of ... · PDF fileInvestment Opportunity LNG...
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Investment Opportunity LNG Terminal
Gwadar Port AuthorityOrmara Naval
HarbourKarachi Port Trust
PasniSonmiani
Legend
Existing Ports
Potential sites
Port QasimAuthority
Keti Bandar
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Port Qasim
EV site
Khirpranwala site
Confidential Pakistan LNG: site selection
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INTRODUCTION
� EVTL – JV between Engro Corp and Royal Vopak of Netherlands
� First bulk liquid chemical, LPG and Cryogenic storage terminal at Port Qasim
� Handling 74% of bulk liquid chemical imports; 70% of LPG imports
� International Certifications besides customer audits
� Facilitated over USD 1.5b investment in Pakistan
� Operated by Engro
� Healthy returns
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� Healthy returns
INTRODUCTION
• EVTL – A 50/50 JV between Engro Chemical Pakistan Limited and Royal Vopak of
Netherlands
• Operating a state of the art bulk liquid chemical and LPG storage terminal at Port
Qasim
• Handling 74% of the bulk liquid chemical imports and 70% of the LPG imports to
Pakistan
• International Certifications
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Business Ventures
Engro Polymer & Chemicals 56%
100% 100%
63% 95%
Engro Fertilizers 100%
Engro Vopak50%
100%
Business Ventures Investing USD 1.5b
Engro Vopak Terminal
Limited (EVTL)1997 50 %
Royal Vopak
(Netherlands)
Bulk Chemical
Handling Jetty
Engro Polymer & Chemicals
Limited (EPCL)1999 56 %
Mitsubishi
Corp/IFC
PVC & VCM
Manufacturing
ENGRO’s Subsidiaries/AffiliatesYear of
Est.
Engro’s
Stake
Key Equity
PartnersBusiness Areas
Engro Chemical Pakistan
Limited (ECPL)
1965/
1991100 %
Dawood Group,
General Public
& Others
Fertilizer Manufacturing
& Marketing
Expansions Underway
Urea Production Capacity
Expansion (US$ 1050mn)
Back Integration into VCM
& PVC capacity Expansion
(US$ 240mn) completed
Terminal Capacity Expansion
completed (US$ 35mn)
Avanceon 2003 63 % Wains Industrial Automation
Engro Foods Limited (EFL)2005 100 % None
Food Processing &
Marketing
Engro Energy Limited (EEL) 2006 95 % IFC Power Generation
Engro Eximp Private
Limited (EEPL)2006 100 % None
Fertilizer Trading
& Rice Exports
Engro PowerGen (Pvt.)
Limited (EPGL)2008 100 % None
Power Project
Development
(US$ 240mn) completed
Dairy Ice-cream
Manufacturing Plant
(US$ 100mn) completed
Integrated Rice Mill under
construction by 4Q10
Acquired equity in US Company
Power Generation
Plant (US$ 220mn) completed
New Project Feasibilities
underway-TharEngro
PowerGen
Engro’s Financial Strength
• ENGRO is a large corporation of the country with double digit earning growth
in the last decade
• Assets: PKR 164.8 billion ( USD 1.94 billion)
• Revenue: PKR 79.9 billion ( USD 940 million)
• Profit after tax: PKR 6.8 billion ( USD 80million)
• Market capitalization: PKR 63.5 billion (USD 740 million)
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• Currently has long term credit rating of AA from Pakistan Credit Rating Agency
• USD 1.05bn Investment in one of the world’s largest fertilizer complex
• Presence in 14 countries around the world (In Middle East, N. Africa, S.E. Asia
& USA) - Mainly through Avanceon
� Engro Vopak has maintained an impeccable safety record since its commissioning in November
1997 and is internationally certified for safety, security, quality, and environment.
� Over 13 Years of safe operation
� 4,845 days with out LTI as of February 28, 2011
� Engro Vopak has acquired an Integrated Management System (IMS) for a combined and
coordinated certification on ISO 9001, ISO14001 and OHSAS 18001 standards.
� EVTL is the only terminal in Pakistan which has been audited and verified by the European based
� Engro Vopak has maintained an impeccable safety record since its commissioning in November
1997 and is internationally certified for safety, security, quality, and environment.
� Over 13 Years of safe operation
� 4,845 days with out LTI as of February 28, 2011
� Engro Vopak has acquired an Integrated Management System (IMS) for a combined and
coordinated certification on ISO 9001, ISO14001 and OHSAS 18001 standards.
� EVTL is the only terminal in Pakistan which has been audited and verified by the European based
E V T L
� EVTL is the only terminal in Pakistan which has been audited and verified by the European based
international non-profit making foundation, Chemicals Distribution Institute for Terminals (CDI-T).
� Engro Vopak has also acquired certification on International Code for the Security of Ships and Port
Facilities (ISPS).
� EVTL is the only terminal in Pakistan which has been audited and verified by the European based
international non-profit making foundation, Chemicals Distribution Institute for Terminals (CDI-T).
� Engro Vopak has also acquired certification on International Code for the Security of Ships and Port
Facilities (ISPS).
� Vopak Standards implemented. Which includes Safety, Health, Environment, Security, Maintenance,
Procurement, Operations, CRM, Sustainability etc.
� Internal survey of Behavioral Based Safety (BBS) completed in 2010; Average score was 3.86 (out of
5) and the last average of 3.1 in 2008; which shows an improving trend.
� EVTL secured more than 75th percentile score 4 (out of 5) in all ten elements of “Organizational
Culture Survey” conducted in 2010 by BST Malaysia, which is validating internal BBS survey.
� THA is an advanced version of CDI-T audit. An external audit was done by Vopak in 2010. EVTL
scored 95% score in this audit.
� Vopak Standards implemented. Which includes Safety, Health, Environment, Security, Maintenance,
Procurement, Operations, CRM, Sustainability etc.
� Internal survey of Behavioral Based Safety (BBS) completed in 2010; Average score was 3.86 (out of
5) and the last average of 3.1 in 2008; which shows an improving trend.
� EVTL secured more than 75th percentile score 4 (out of 5) in all ten elements of “Organizational
Culture Survey” conducted in 2010 by BST Malaysia, which is validating internal BBS survey.
� THA is an advanced version of CDI-T audit. An external audit was done by Vopak in 2010. EVTL
scored 95% score in this audit.
E V T L
scored 95% score in this audit.scored 95% score in this audit.
� Environmental Management System (ISO 14001:2004) certification in 2005, surveillance and re-
certification audit to date without any non compliance.
� No Environmental damage/Incident since startup (1997).
� Annual Environmental Compliance reports which includes
� Toxic Gas Monitoring in all product areas
� Vehicle Gas Emissions Monitoring
� Equipment Exhaust Gas Monitoring
� Environmental Management System (ISO 14001:2004) certification in 2005, surveillance and re-
certification audit to date without any non compliance.
� No Environmental damage/Incident since startup (1997).
� Annual Environmental Compliance reports which includes
� Toxic Gas Monitoring in all product areas
� Vehicle Gas Emissions Monitoring
� Equipment Exhaust Gas Monitoring
E V T L
� Sewerage/Effluent Waste Monitoring
� Hazardous waste disposal through incineration
� Solid/Horticulture waste disposal on CDGK/PQA approved sites
� Reduced EVTL’s carbon foot print (equivalent) from approximately 850 tons/annum to 785
tons/annum through Energy Management and LEAN initiatives (executed 8 projects).
� Soil and Ground water assessment being conducted in 2011 to evaluate any contamination inside
EVTL boundaries.
� Sewerage/Effluent Waste Monitoring
� Hazardous waste disposal through incineration
� Solid/Horticulture waste disposal on CDGK/PQA approved sites
� Reduced EVTL’s carbon foot print (equivalent) from approximately 850 tons/annum to 785
tons/annum through Energy Management and LEAN initiatives (executed 8 projects).
� Soil and Ground water assessment being conducted in 2011 to evaluate any contamination inside
EVTL boundaries.
EVTL Mangrove PlantationEVTL Mangrove PlantationEVTL Mangrove PlantationEVTL Mangrove PlantationEVTL Mangrove PlantationEVTL Mangrove Plantation
Existing Jetty – Handling capacity 75,000 DWT- Facilitating over USD 1.5b investments
–– –
EVTL Jetty – LPG ship being unloaded- USD 10m investment in storage
E V T L
Dangerous Chemicals stored and handled in environment friendly manner
First cryogenic (-103 degress C) product being unloaded at EV Jetty
Ethylene Storage Tank: USD 33m Investment in 2009
Rapidly growing gap between energy demand & indigenous supply …
137.64
100.0
125.0
150.0
(Mill
ion
TO
Es)
Oil/LPG Gas Coal Hydel Nuclear Renew ables
103.80
E V T L
Initial Target Initial Target
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33.84
44.0848.91
0.0
25.0
50.0
75.0
19
94
-95
19
96
-97
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98
-99
20
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-01
20
02
-03
20
04
-05
20
06
-07
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08
-09
20
10
-11
20
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-13
20
14
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20
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-17
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20
20
-21
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-23
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-25
(Mill
ion
TO
Es)
Options limited to import gas
Energy Crisis of the Country
• A total of 95.8 TWh of electricity was generated in Pakistan from July 2008
to June 2009.
– Generation through domestic natural gas 32.4%
– Furnace Oil contributes 35.4%
– Hydel Power 30.3%
• Currently, the country is facing over 5000 MW shortfall of electricity which
forced PEPCO to carry out 10 to 12 hours of load shedding. forced PEPCO to carry out 10 to 12 hours of load shedding.
• Amongst all the available fuels for thermal power projects, gas offers the
most benefits in terms of plant economics, efficiency, availability and
emissions
• Currently, Pakistan is having a gas deficit of around 1 billion cubic feet per
day
• LNG is the only viable fuel option for developing new power project which
can then be developed on fast track.
Pipeline import options are challenging
Gas Import PipelinesGas Import Pipelines
Disputed
Territory
CHINACHINAPARS
OFFSHORE FIELD
TURKMENISTAN
IRAN
AFGHANISTAN
TAJIKISTANCaspian Sea
Kandhar
Mazar-e-sharif
Quetta
TURKMENISTAN
AFGHANISTAN
TAJIKISTANCaspian Sea
Islamabad
Lahore
Multan
Sui
Herat
Mazar-e-sharif
Quetta
Dauletabad Field
AssaluyahBHONG
D.I Khan
TAP
Iran (IPI) - structurally most cost efficient, however politica l uncertaintiesTurkmenistan (TAP) - broad international support. Issues - Reserves? Sec urity? Qatar-Pakistan - technically feasible, political benign; Qatar’s pr iority?
PARS
OFFSHORE FIELD
QATAR
INDIA
Arabian Sea
Jiwani
PAKISTAN
Charhbakhr
Bandar Abbass
Gawadar Karachi
INDIA
Arabian Sea
Charhbakhr
Bandar Abbass
BHONG
100kms
IP
QP
Need of Time – EVTL’s LNG TERMINAL
• EVTL focus is on the fastest method to facilitate LNG flow into the NG
pipeline network in Pakistan through a floating terminal on open access
concept.
• “Open access” is an independent terminal concept where several suppliers
or off-takers can be customers and own terminal capacity
• EVTL strongly positioned with suppliers, buyers, GOP & GoP/GoS
• First time mover advantage significant; achievable
• Our Project will
– Provide Credibility to Suppliers - COP, GDF Suez, Shell, Mitsubishi, BG and BP…..
– Ensure Phased Capacity Growth– floating/offshore moving to land storage
� Brown Field Site (Option 3):
E V T L
EasyLNGEasyLNG TMTM -- Regasification Solution Regasification Solution
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� EVTL’s focus is on establishing an open access or merchant floating storage re-gasification terminal as
part of the unbundled structure under the LNG Policy 2006 with following salient features.
� EVTL’s focus is on establishing an open access or merchant floating storage re-gasification terminal as
part of the unbundled structure under the LNG Policy 2006 with following salient features.
ITEM PARAMETERS
Mooring
Infrastructure
� Side by Side Arrangement with Ship to Ship
transfer
� Jetty design to handle ships having LOA of 350m
E V T L
Size of LNGC
� 29,000 MT to 60,000 MT
� Deepening and Widening of the PQA channel is planned
and there after LNGCs of larger size may arrived at Jetty
Size of FSRU � 50,000 to 60,000 MT
Gas Flow Rate � Upto 600 MMSCFD
E V T L
EVTL’s Progress
• NOC from PQA for Greenfield terminal at Khiprianwala issued in 2010
� EVTL completed Quantitative Risk Assessment (QRA)
� EVTL completed ESIA and public hearing was held in 1st week of April
� Lloyd’s Register completed HAZID & Channel simulation
� OGRA preliminary construction license obtained; full license application submitted
� Preliminary technical & financial proposal approved by PQA; draft IA obtained .
� Update/vetting of screening study underway with Energy and Power (+/-20% )� Update/vetting of screening study underway with Energy and Power (+/-20% )
• Potential Partners Sought
� FSRU
� EPC
• Offtakers
• IPPs and Fertilizer producers - demand of over 7 mtpa
� Investment and job creation including growth of ancillary businesses
� Knowledge sharing and upgrade of skills of port and terminal resources
� Understanding of international standards and procedures including equipment upgrade at
Port
� Reduced carbon footprint of the country
� Efficient operations of power plants
� Fast track development with stakeholders
� GDP growth
� Safe, reliable and efficient operations by a credible organization of Pakistan which is of
comfort to stakeholders
E V T L
Natural Gas Distribution Grid – Pakistan …
State-controlled entities Sui Northern Gas Pipelines Ltd. (SNGPL) and Sui Southern Gas Company Ltd. (SSGCL) have geographical
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have geographical monopolies in the northern and southern parts of Pakistan respectively for the purchase, transmission, distribution and sales / marketing of natural gas
The Bigger Picture-Regional Energy Corridor
SupplySupplySupplySupply
ISGC under PPPISGC under PPPISGC under PPPISGC under PPP
TransmissionTransmissionTransmissionTransmission
SSGC/SNGPLSSGC/SNGPLSSGC/SNGPLSSGC/SNGPLPSO/OMCsPSO/OMCsPSO/OMCsPSO/OMCs
Distribution Distribution Distribution Distribution
DISCOs DISCOs DISCOs DISCOs Gas and PowerGas and PowerGas and PowerGas and Power
Aggregator of Gas Cross Country/Border Industry
E V T L
Aggregator of GasE&P
Imported GasLNG
Terminal CapacityPipeline Capacity
Cross Country/Border Oil and Gas pipelines
IndustryIPPsResidences