alaska lng · • alaska lng is now working to answer key technical questions to reduce uncertainty...
TRANSCRIPT
Alaska LNG Concept Information
Alaska LNG
Overview
October
December 3, 2013
Alaska LNG Concept Information Project Overview
Project Team • BP, ConocoPhillips, ExxonMobil and TransCanada are
working together to progress an Alaska LNG project: − 300+ people involved in project planning and design work − Multiple third-party contractors engaged, including
Alaskans − Leveraging Denali, APP, and related material ($700M past
work)
Project Description • Concept selection work to date:
− Gas treatment plant located on the North Slope − An 800-mile, 42-inch diameter pipeline − Up to 8 compression stations − At least 5 off-take points for in-state gas delivery − Liquefaction plant and marine export terminal located in
south-central region − Lead site is Nikiski
− Preliminary capital investment: $45-$65B
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Alaska LNG Concept Information LNG Plant and Marine Terminal Site Selection
• Lead Site – After evaluating more than 20 locations, the Project Team has identified a primarily industrial area near Nikiski.
• The Team has performed considerable technical work for both the location of the plant as well as the viability of Nikiski for LNG tanker operations.
• A Nikiski LNG plant site takes into consideration a pipeline route that provides access to natural gas for: – Fairbanks – Mat-Su Valley – Anchorage – Kenai Peninsula
• Alaska LNG wants to be a good neighbor. • Our goal is to lessen impacts and enhance
benefits to the businesses and residents in the area.
Alaska LNG Plant Conceptual Layout
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Alaska LNG Concept Information Land Access
• Access to land is part of project development. • Access to land allows further engineering and feasibility studies, including
environmental, geotechnical, soils, groundwater and other research as necessary to confirm the LNG plant and terminal site selection.
• The exact parcels that we want to access are confidential. We do not have a specific timetable for completing the process.
• We hope that we will be able to reach an arrangement with the landowners in the areas we are interested in accessing.
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Mark Jennings
Alaska LNG Concept Information
Field Studies • 2013 Summer Field work completed September 2013:
– Cultural Resources: >6,500 acres – Hydrology / Lakes / Fisheries studied: 27 / 17 / 20 – Subsistence and Health Impact Assessments starting
this winter (2013/14) – 150 people involved in field studies (60% Alaskans)
• Alaska LNG is now working to answer key technical questions to reduce uncertainty and continue advancing the project.
• The multi-year field work effort is now underway. • We are working to complete the 2013 program and are
planning for the 2014 season. • The primary scope of field work is to analyze existing
environmental conditions along project footprint – Planning, logistics, and permitting to support
survey work
– Public and agency engagement to support survey work and ongoing project planning
Previous and Current Work Key project design accomplishments • Confirmed ability to integrate into existing
operations • Completed project design concept, announced
Feb 2013 • Finalized LNG Lead Site
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Alaska LNG Concept Information Benefits for Alaskans
• A successful Alaska LNG project would provide a host of economic benefits to Alaskans including:
– State revenues – Short and long-term job opportunities – Business and industrial opportunities
• Commercializing North Slope natural gas through the Alaska LNG Project will provide Alaskans access to a cleaner burning and dependable energy source to supply ongoing in-state energy demand via five off-take points along the pipeline route.
• The off-take points would be decided following consultation with State officials and local utilities
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Alaska LNG Concept Information Key Issues, Timing and Next Steps
Key Issues − “Mega-project” challenges (labor, resources, equipment, schedule, etc.) − Uncertainty related to permit timing and scope
Next steps − Completing field studies in preparation for regulatory submissions
− Winter Field Season 2013/14 − Summer Field Season 2014
− More detailed engineering and design work for an LNG plant, marine export terminal, LNG tanker fleet, a pipeline and a gas treatment plant
Project timing − Preliminary engineering and environmental studies within a 3-5 year timeframe (depending on
regulatory approvals) − After regulatory approvals are received and funding is secured, final engineering, design,
procurement and construction may be completed in 5-6 years
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Alaska LNG Concept Information Contact Us
• If you have questions or concerns, please call our Alaska toll-free number
• We will respond to you and put your name and address in our stakeholder database, which will give you the option to automatically receive project updates
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Mark Jennings
Alaska LNG
Kenai Peninsula Office 120 Trading Bay Road Suites 310, 320 Kenai, AK 99611
Toll-free number: 855-550-5445
Alaska LNG Concept Information
Additional Information
Alaska LNG
Alaska LNG – Integrated Team
Producing Fields Lead: BP
Pipelines Lead: APP
LNG Plant Lead: ConocoPhillips
ERL Team Lead: ExxonMobil
Commercial Team Lead: BP
Concept Team Lead: ExxonMobil
Management Committee
Technical Committee
Multimillion Dollar, Four-Company Effort – 125+ Employees, 100+ Contractors •Joint work commenced March 31, 2012 after completion of the Pt. Thomson Settlement / joint work agreements •Cooperative effort among the leading North Slope producers and a leading North American pipeline company •Identified potentially viable LNG project options to monetize ANS natural gas •Used company strengths, shared information / expertise; built upon past efforts, sought out new ideas
Integration Team Lead: ExxonMobil
Alaska LNG – Project Concept Description
Gas Treating •Located at North Slope or Southcentral LNG site •Remove CO2 and other gases and dispose / use •Footprint: 150 - 250 acres •Peak Workforce: 500 - 2,000 people •Required Steel: 250,000 - 300,000 tons •Among largest in world
Liquefaction Plant • Capacity: 15 – 18 million tonnes per annum (MTA)
3 trains (5-6 MTA / train) • Potential areas: 22 sites assessed in Cook Inlet, Prince
William Sound and other Southcentral sites • Footprint: 400 - 500 acres • Peak Workforce: 3,500 - 5,000 people • Required Steel: 100,000-150,000 tons
Storage / Loading • LNG Storage Tanks, Terminal • Dock; 1 - 2 Jetties • Design based on 15– 20 tankers • Peak Workforce: 1,000-1,500 people
Estimated Total Cost: $45 – $65+ Billion Peak Construction Workforce: 9,000 – 15,000 jobs Operations Workforce: ~1000 jobs in Alaska
Descriptions and costs are preliminary in nature and subject to change. Cost range excludes inflation.
Pipeline • Large diameter: 42”- 48” operating at >2,000 psi •Capacity: 3 - 3.5 billion cubic feet per day •Length: ~800 miles (similar to TAPS) •Peak Workforce: 3,500 - 5,000 people •Required Steel: 600,000 - 1,200,000 tons •State off-take: ~5 points, 300-350 million cubic feet per day, based on demand
Producing Fields •~35 TCF discovered North Slope resource •Additional exploration potential •Anchored by Prudhoe Bay and Pt. Thomson with ~20 years supply available
•Use of existing and new North Slope facilities •Confirmed range of gas blends from PBU/PTU can generate marketable LNG product
•Peak Workforce: 500 – 1,500 people
GO
LNG
Pro
ject
O
pera
tions
Execute: • Final engineering • Financing • Procurement • Fabricate / Logistics / Construct • Prepare for Operations
Complete Gov’t / Reg. Issues: • Secure remaining construction
/ operating permits • Stakeholder engagement Implement business structure & agreements
Commission / start-up
Alaska LNG – Work Plans / Key Decision Points
Evaluate: • Range of technically viable
options for major project components
• Business Structure • In-state gas / export LNG demand
Screen commercial viability
Viable Technical Option(s) Identified Government Support Permits / Land Use Achievable Potential Commercial Viability
Requirements to Take Next Step:
Progress: • Preliminary engineering to
refine concept • Business structure • Financing plan
Start individual gas / LNG sales / shipping efforts Assess commercial viability
Viable technical option Government Support Permits / Land Use Underway Potential Commercial Viability
Activ
ities
Complete: • Front-end engineering & design • Major contract preparation • Business structure • Financing arrangements
Solicit Interest of Others Advance Gov’t / Reg. Issues: • Key permit / land use approvals • Stakeholder engagement • Secure DOE Export License
Execute individual gas / LNG sales / shipping agreements Confirm commercial viability
Secure Permits / Land Use / Financing / Key Commercial Agreements
Confirm Commercial Viability Execute EPC contracts
Peak Staffing: ~300 400 - 500 500 – 1,500 9,000 – 15,000
Cost ($): Tens of Millions Hundreds of Millions Billions Tens of Billions
Est. Engineering / Technical Duration*: 12 - 18 Months 2 - 3 Years 5 - 6 Years
Concept Selection
Pre- FEED
FEED (Front-End
Engineering & Design)
EPC (Engineering,
Procurement & Construction)
Decision to Build the
Project Decision Decision
(Today)
PTU Settlement, Joint Work
Agreements
* NOTE: Duration of various phases may be extended by protracted resolution of fiscal terms, permitting and regulatory delays, legal challenges, changes in commodity market outlook, time to secure long-term LNG contracts, labor shortages, material & equipment availability, weather, etc.
GO GO GO
Solicit Interest of Others Establish Government Support and Advance Regulatory Issues:
• Competitive oil tax environment; predictable / durable LNG project fiscal terms; AGIA Issues
• Assure ability to secure regulatory approvals / permits / land use • Environmental activities / Technical data collection • Stakeholder engagement • File DOE Export License