PS6-2 China's First LNG Import Terminal
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Transcript of PS6-2 China's First LNG Import Terminal
China’s First LNG Import Terminal
LNG 14 Doha, Qatar
24th March 2004
Chu Yanqun
LC (Buddy) Hicks
Lu Ningxian
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China’s First LNG Import Terminal
• Characteristics - Guangdong Province
• Pearl River Delta Energy Demand
• Shareholders
• Project Description
• Trunkline Route & Customers
• Commercial Arrangements
• Summary
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Guangdong Province
• Total population c. 86 million (larger than the UK)
• GDP approximately equal to:
Malaysia,
Singapore
Philippines
• GDP growth 7- 9% p.a.
• 2003 GDP 13.6%
• Insufficient domestic energy resources
Hong KongPopulation: 7m
MacauPopulation: 0.4m
West Pearl River DeltaPopulation: 8m
East Pearl River DeltaPopulation: 31m
Guangzhou
Pipeline Route $10 bln of GDP
Shenzhen
Hong Kong
Macau
FoshanDonggu
an
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Guangdong Energy Demand
Growth of Energy Mix
0 10 20 30 40 50 60 70 80 90 100
2010
2005
2000
1995
Million Tons Oil Equivalent
Coal Oil Hydro electric & nuclear LPG/ Gas
4.0%
7.0%
8.7%
9.1%
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Pearl River Delta
PRD Taiwan
Population (m) 46 23
GDP ($m) 272 286
GDP / capita ($) 5900 12500
GDP CAGR (2000-04) 9.0% 2.7%
Total primary energy consumption (mtoe) 67 60
Gas demand in 2010 (bcm) 10 14
PRD vs. Taiwan market (2001)
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Initial Gas Sales
LNG Demand at Plateau
GD Power2.05 mtpa
55%GD LDCs
1.03 mtpa
28%
HK Users0.63 mtpa
17%
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Initial Project Development
1995 CNOOC / Shenzhen studies
1999 SDPC Listing
2001 BP Selected as Foreign Partner
Establishment of Joint Executive Office
2003 Feasibility Study Approved
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JV Company
CNOOC 33%
BP 30%
Shenzhen Gas 10%
Guangdong Yudean 6%
Guangzhou Gas 6%
Shenzhen Energy 4%
Hong Kong Electric 3%
Hong Kong & China Gas 3%
Foshan Municipal Gas 2.5%
Dongguan Fuel 2.5%
Guangdong Dapeng LNG Company
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Terminal & Trunkline
• Phase 1 capacity 3.7 mtpa
• One single berth jetty
• Vaporisation Facilities
• 2 X 160,000 m3 storage tanks
• 370 Km of pipelines
• c. $900m project and working capital
Project Description
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Foshan
Dongguan
Huizhou
Hong Kong
Shenzhen
Qianwan
Guangzhou
Terminal
Offtake Station
Phase 1 Pipeline
Submarine Pipeline
Zhujiang Dongb
u
Trunkline Route
370 Kms
Send-out: Guangdong
• city gas
• power stations
Hong Kong Electric
Hong Kong & China Gas
Meishi
Nanhai
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Commercial Arrangements
LNG Sale and Purchase Agreement
Supply from Australia NWS, 25 years, take-or-pay, 3.2 mtpa at plateau, FOB
Shipping
2-3 vessels, 145,000 m3 capacity, develop national LNG shipbuilding, Sino-foreign JV
JV Company
30 years, LNG purchase, transportation, storage, re-gasification and gas marketing
Financing
70% debt, 30% equity, project finance, syndicate of Chinese banks
Gas Sales Contracts
25 years, take-or-pay, back-to-back with LNG purchase
Terminal EPC Contract
Saipem, Technigaz, Tecnimont and Sofregaz consortium selected as contractor, early works started in June 2003
Trunkline
FEED ongoing
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China’s First LNG Import Terminal
• First gas mid 2006
• Promotes clean energy and blue skies over Guangdong & Hong Kong
• Leads the development of the Chinese LNG industry
Guangdong Dapeng LNG Company Ltd.