Liquefied Natural Gas Industry and Pacific NorthWest LNG ...
Transcript of Liquefied Natural Gas Industry and Pacific NorthWest LNG ...
Liquefied Natural Gas Industry and Pacific NorthWest LNG Project Update July 14, 2014
Greg Kist, President Pacific NorthWest LNG
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Operational & Under Const'n New Supply Demand
MTPA
Global LNG Material Balance
Current market tightness expected to remain until 2019
MTPA
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Pacific Contracted Pacific Uncontracted Atlantic Contracted (Base Case) Pacific New Supply Demand
Pacific LNG Material Balance
New projects will ease the gap temporarily
B.C.’s LNG Advantage
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Big Canadian Aspirations (based on NEB export license applications)
Project Location LNG mtpa
Partners
1 Pacific NorthWest Prince Rupert 19.7 PETRONAS, Japex
2 LNG Canada Kitimat 24.0 Shell, PetroChina, KoGas, Mitsubishi
3 Kitimat LNG Kitimat 10.0 Chevron, Apache
4 Prince Rupert LNG Prince Rupert 21.6 BG Group
5 BC LNG Co-op Kitimat 1.8 Cooperative/Golar
6 WCC LNG TBD 30.0 Exxon/Imperial
7 Woodfibre LNG Squamish 2.1 Pacific Oil & Gas
8 Triton LNG TBD 2.3 AltaGas, Idemitsu
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Largest LNG Producer
Qatar 80 Existing capacity
Expected to be the largest LNG Producer
Australia 120 Existing (20) + under construction + planned
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Project Overview
• Proposed development on Lelu Island administered by the Prince Rupert Port Authority
• 2 trains of 6 million tonnes per annum; option for a third; Lelu Island likely capable of hosting a fourth train
• Initial estimate of facility capital cost in range of $11 billion capital
• Triple FEED approximately 90% complete
• Final investment decision expected late 2014
• Construction slated to occur 2015-2018
• First cargo anticipated in early 2019
• Partners now represent 38% of integrated project
• Environmental Impact Statement filed on February 28, 2014; Decision anticipated late in 2014
Company Overview
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Project Timeline
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Project Schedule
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Key Activities 2012 2013 2014 2015 2016 2017 2018 2019
Regulatory Review Process
• Submit Project Description
• Submit EA
Front End Engineering Design (FEED) Competition
• Submission of EPCC Bids
Final Investment Decisions (FID)
Engineering Procurement Construction and Commissioning (EPCC)
First Cargo
52 Months to RFSU
Environmental Application
• In dual EA process
• Additional information request has come from CEAA
• Developing responses to the request
• PNW is the first LNG terminal to go through the revised CEAA 2012 process
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Facility Location
• Site is Lelu Island near Prince Rupert
• Secured exclusivity of the site until FID and subject to execution of Project Development Agreement (PDA)
• Feasibility Assessment Agreement requires both parties to execute definitive agreements which is anticipated in July 2014
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Prince Rupert Port Authority - Federal
• Lelu Island located in the District of Port Edward (pop. ~600)
• Land is administered by the Prince Rupert Port Authority.
• Next nearest town is Prince Rupert (pop. ~12,500)
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Potential BG site
Pacific NorthWest LNG Facility Overview
• Two liquefaction plants
• Two LNG storage tanks
• Expansion capability to 3 trains
• A bridge connecting Lelu Island to Port Edward
• Power generation infrastructure
• Administrative buildings
• Materials offloading facility
• A jetty trestle and marine terminal
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Typical LNG Plant Plot Plan
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Plot plan includes space for: i. 2 + 1 trains of 6 MTPA/train ii. 2 + 1 LNG tanks iii. Flare system iv. General offices v. Layout and construction camp vi. Material Offloading Facilities
(MOF) vii. LNG jetty, trestle and 2 berths viii.Bridge from mainland
PETRONAS Shipping
• PETRONAS has one of the largest LNG carrier fleets in the world
• Operates Malaysian Maritime Academy
• Not all vessels will be PETRONAS vessels but all vessels calling will comply with PETRONAS standards
PETRONAS Fleet
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Substantial Economic Benefits
• $11 billion investment
• Up to 4,500 construction jobs at peak
• 330 local jobs in operation
• Over 300 spinoff jobs in the community
• 1.3 billion new tax revenues
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“Nation Building” Scale of Investment
• Recognize that we are in an extremely competitive energy world
• Capital will move quickly to the highest, risk-adjusted return projects
• Time is of the essence
• Regulatory environment must remain robust but timely
• Fiscal environment must account for massive capital investment
• A successful Canadian LNG industry will set us on the world energy stage
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Thank You