a small scale lng solution to us natural gas supply€¢ the us federal energy regulatory...
TRANSCRIPT
A Small Scale LNG Solution to US Natural Gas Supply Sean Lalani – Platts 15th Annual Caribbean Energy Conference
Topics
• Eagle LNG Partners • Jacksonville LNG Project • FERC Application for Authorization • The Virtues of US Natural Gas • The Eagle LNG Export Model
2
Who is Eagle LNG Partners?
Eagle LNG Partners
• Joint Venture between GE Ventures and Ferus Natural Gas Fuels – Initially conceived solely for domestic LNG supply – Combining financial wherewithal, liquefaction
technology, operating capability and LNG experience • Eagle LNG Partners has been developing the
Jacksonville project since mid-2013 – Local markets include marine, rail and trucking – Interest from nearby, small scale export markets
4
GE’s LNG Expertise
World-scale LNG
• 25+ years of experience • Industry innovator • Full-suite of products
and support services • Significant amount of existing
LNG capacity uses GE equip.
Small-scale LNG
• 11 installed small-scale LNG plants • Modular, small-scale LNG plant designs
− Plant modules built in factory conditions − Assembled at site location with minimal balance
of plant • U.S. manufacturing at 330k ft2 site in Schertz, TX
complemented with GE global sourcing
Global leader in the design & manufacturing of LNG equipment
Operating GE small-scale LNG plant
5
About Ferus
• Formed in 2001 focused on the production and supply of cryogenic products
• Operating in the harshest regions of North America
• First LNG facility operational in 2014
• First CNG installation operational in 2014
• Privately held by the Energy & Minerals Group Carbon Dioxide Facility
Legend
Headquarters Oil & Gas Basin
Nitrogen Facility LNG Facility CNG Operations
Montney
Granite Wash Huron
Marcellus
Haynesville - Deep Bossier
Eagle Ford
Permian Basin
Uinta Piceance
Green River DJ
Williston
Deep Basin
Utica
Various Tight Light Oil Plays
6
Ferus Natural Gas Fuels – LNG
Ferus NGF Elmworth LNG facility
7
Jacksonville LNG Project
Project Location
9
Marine Terminal
Facility specifically designed to send-out smaller LNG transfer vessels (up to ~30’ draft, 700 foot length)
At full production of all three LNG trains, one ~30,000 m3 LNG carrier estimated to load every 9 to 10 days
Source: Anthony Veder
10
FERC Application
FERC Application
• The US Federal Energy Regulatory Commissions (“FERC”) is responsible for authorizing the construction and operation of facilities that liquefy natural gas and load LNG onto ships for export
• FERC conducts an environmental review to help with that decision
• With the new process introduced in 2014, DOE reviews an applicant’s export application only after a facility has received FERC authorization
12
Project Timeline
Pre-filing approved FERC Open Houses completed ◦ Strong local support in Jacksonville
Anticipate Formal Filing in late 2Q/early 3Q Approximately 18 months to first production
following FERC approval (late 2017/early 2018) 13
Virtues of US Natural Gas
Diesel vs Oil vs Natural Gas
Source: EIA
Diesel ~$15
HH ~$4
WTI
$/MMBtu
15
The Future?
Source: Canaccord Genuity
16
Economic Sustainability
Source: Dr. Ken Medlock, James A Baker III Institute for Public Policy Rice University
Greater Demand Increased Price
17
US Demand Profile
North American Shale major shale plays demonstrate reserves of 1,930 tcf The Full U.S. Demand Response... • Incremental demand responses (by 2025 -> 16 bcfd)
Source: Dr. Ken Medlock, James A Baker III Institute for Public Policy Rice University
0
1
2
3
4
5
6
PowerGeneration
LNG Exports Industrial Uses Pipeline Exports Heavy Vehicleand FleetTransport
MarineTransportation
Personal AutoTransport
bcf/
day
US Demand Profile
18
The Eagle LNG Model for Export
The Eagle LNG Model
What Eagle Focuses On What Eagle Is Not • Small Scale Facilities and Supply • World Scale Export and Supply
• Smaller Ships (<50,000 cbm) • Larger Ships (>125,000 cbm)
• Less than 200 mmcfd capacity • > 1 bcfpd capacity
• Under $1B per facility • Over $1B per facility
• Proximal Markets • World Trade • Reducing cost through proximity • Reducing cost through scale
• Partnerships • Off-Take • Helping our clients with our
experience and expertise • Focused solely on LNG terminal
and facility
• Investments through the value chain as required
20
Jacksonville Proximity to Market
21
Customer Benefits
• Partnership approach – Leveraging cryogenic, natural gas and LNG
experience, relationships, and expertise • Reduced investment
– Smaller requirement for on-land receiving terminal – Proximity may also help to reduce transit time
• A fit-for-purpose solution – Flexibility to meet particular client needs
• Access to US natural gas supply and prices
22
