kitimat lng - council of marine carriers presentation.pdf · kitimat lng lng term inals on...
TRANSCRIPT
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LN G T erm inals on C anada’s W est C oast
Kitimat LNGLN G T erm inals on C anada’s W est C oast
Presentation to 17th B.C. TOWBOAT INDUSTRY CONFERENCE
Whistler, BC
Alfred SorensenKitimat LNG
June 3, 2006
Kitim
at LNG
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• A privately owned Canadian Company established to develop a LN G term inal on C anada’s w est coast.
• Capitalized with Canadian and U.S. institutional investors, management and private investors
• Management team of 6 individuals.
• Average career of 20 years in energy markets and infrastructure projects.
Kitimat LNG Inc.
Kitim
at LNG
Corporate
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What is LNG?
LNG is natural gas that has been cooled such that it condenses to a liquid form
• Temperature -256oF (-160oC) • Atmospheric pressure• Volume is reduced 600 times • LNG is odorless, colorless, non-corrosive and
non-toxic
Kitim
at LNG
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LNG Supply Chain
LNG
Gas Reserve
Gas Production& LiquefactionFacilities
(Exploration) Shipping LNG Import &RegasificationTerminals
Exporter Importer
K itim at LN G ’s Area of Operation LN
G S
upply Chain
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• Excellent safety record • LNG has been in existence for over 40 years
• 80,000 carrier voyages worldwide with no sea related accidents
• Advances in technology and monitoring have only made LNG safer
• Vessels must meet stringent international, national and regional safety codes
• State-of-the-art LNG double-hulled carriers are used to transport LNG on the ocean
LNG
Safety Record
LNG Safety Record
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Kitimat LNGKey Commercial Drivers
Kitim
at LNG
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North Am
erican Gas M
arket Dem
andLNG Supplements Canadian Gas Supplies
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The Reserve Replacement Treadmill
• overall decline rates are now in excess of 22%.
• from a 16.5 bcf basis that is 3.6 bcf/d to replace annually.
Western C
anada Supply/D
emand D
ynamics
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West C
oast LNG
Import Term
inal Locations
A
B
C
F
DE
J I
HG
K
Current West Coast LNG Projects
KitimatKitimatLNGLNG
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Kitimat LNG - Terminal Site
Terminal Site Kitim
at LNG
Location
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Kitimat Region is a Natural Choicefor an LNG Terminal
• Grass roots community support was garnered early in the process.• Canada has a clearly defined environmental assessment process
that is unified at the Federal and Provincial levels of government.• The site selected is zoned for industrial use.• Kitimat rests on the Douglas Channel which provides a deepwater
all season port. Bish Cove provides a natural jetty and break water.• Bish Cove is 18 km from population centre.• Access to Pacific Basin LNG supplies.• Pacific Northern Gas Pipeline provides access to Westcoast
Pipeline and the North American grid.
Kitim
at LNG
Terminal Location B
enefits
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PNG
KLNG Can Access Canadian and US Markets
TCPL
Kitim
at LNG
Market A
ccess
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Market Interest in Kitimat Terminal
• Considerable capacity interest has been established• Off-take customers believe their portfolios should contain
LNG supply commensurate with eventual LNG marketshare
• Off-take customers have long term core need in natural gas with few long term supply alternatives
• LNG may provide the long term supply alternatives• Off-take customers include industrials, oil sands, utilities,
independent power projects and energy marketers
Kitim
at LNG
Off-take M
arket
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Economic Access to Pacific Basin LNG Supply Sources
Kenai 2.1 days
Sakhalin 7.2 days
Indonesia 14 days
Bolivia 15 daysNW Shelf 16 days
Qatar22 days
Kitim
at LNG
Gas S
upply Options
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Supplier Existing Production
(mt/y)
New Production Planned by 2010 (mt/y)
Sail Time to Port of Kitimat
Kenai/Valdez Alaska
1.5 14.0 2.1 days
Sakhalin Island
None 9.6 7.2 days
Malaysia 15.0 6.8 14 daysIndonesia 34.3 21.0 14 daysAustralia 11.7 3.0 16 daysQatar 19.0 40.0 22 daysTotal 81.5 94.4
(4.4 Tcf/yr)
Bringing on the equivalent of a new Alberta
Kitim
at LNG
Gas S
upply Options
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Kitim
at LNG
Shipping C
omparison
Shipping Days Comparison to West Coast Terminals
Significant shipping cost advantage at Kitimat LNG
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Kitim
at LNG
Shipping C
omparison
Marginal Transport Cost Comparison with Kitimat LNG
Based on Number of Shipping Days and Additional Shipsrequired to move same volume of LNG per year
LNG Carriers
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Kitimat LNG Terminal Components
Kitim
at LNG
Terminal C
omponents
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Main Components of the Kitimat LNG Terminal
• Offshore LNG tanker berth and unloading jetty capable of handling LNG carriers up to 200,000 cubic meters (approx. 98,500 dwt)
• Construction and tug berth• Two 160,000 cubic meter LNG storage tanks (approximately
6.8 Bcf of natural gas) with the potential for future expansion to three tanks
• NGL separation unit provides flexibility• Send-out pipeline for natural gas (610 MMcf/day) with
potential future expansion to 1 BCF
Kitim
at LNG
Terminal C
omponents
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LNG Import Terminal at Kitimat, BCK
itimat LN
G Term
inal Layout
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Jetty information and design
• Laterally Braced Dolphin design• Positioned along the steep rocky eastern shore of Bish Cove• Four steel pipe berthing dolphins secured laterally to shore• 840 sq. meter unloading platform• Six shore-based concrete mooring points• Key benefit: small footprint and environmental impact
– Underwater rock blasting and dredging minimized– Reduced amount of steel components in the intertidal and
submerged zones results in long term serviceability and reduced maintenance costs
• Less than $20M capital cost
Kitim
at LNG
Terminal
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Membrane carrier
Kitim
at LNG
Advantage
LNG Berth with breakwater
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Unloading ArmsK
itimat LN
G
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LNG Carriers
• LNG Tankers are large vessels and have substantial windage –similar to container ships and auto carriers
• LNG carriers range from 125,000 to 200,000 cu. metre capacity• A typical LNG ship is approximately 975 feet long and 145 feet
wide with a loaded draft – 39 feet• Capable of sailing at speeds up to 21 knots• LNG ships are most costly cargo vessels built – new LNG ships
cost approxim ately $160M vs $70M for V LC C ’s• LNG ships are equipped with the most-up-date navigation and
communication technology• LNG tankers use natural gas as fuel – so are among the cleanest
ships at sea • 4-5 ships at terminal per month arriving at KLNG terminal
Kitim
at LNG
Carriers
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Kitim
at LNG
Carriers
LNG Ship size comparison to Very Large Crude Carrier
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• LNG carriers have:– Double hulled construction between 6-10 feet between hulls
– Cargo tanks provide 3rd layer of protection
– Gas detectors and safety alarms for continuous leak detection and monitoring
– Safety and security zones in established port areas
• Excellent safely record: more than 80,000 carrier voyages covering m ore than 100 m illion m iles w ithout a m ajor incident in LN G ’s 40 plus year history
Marine Safety FeaturesK
itimat LN
G M
arine Safety
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LNG
Carrier S
afety
Well protected and insulated – 6+ feet between outer barrier and cargo•Outer steel •Ballast•Inner steel hull•Primary insulation and membrane and•Secondary insulation and membrane
Containment Systems
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Typical Containment SystemsLN
G C
arrier Safety
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Kitim
at LNG
Carriers
Spherical Moss Design
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Kitim
at LNG
Carriers
Membrane Containment
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Tug Requirements
• Tugboat requirements vary depending on size of LNG vessels • Based on SIGGTO guidelines tugs for LNG carriers require a 150
tonne minimum bollard• Tugs for the larger vessels will be 38 m ( 125 ft) long and 10.7 m (
35 ft) wide with a maximum draft of 5.5 m ( 18 ft).• The minimum required water depth is approximately 7 m ( 23 feet)• Regardless of the size of LNG carrier that will call upon Kitimat –
the existing tug fleet is inadequate and new tugs will be required• Tugs required for:
– Maneuvering and assistance for berthing and departing– Fire fighting requirements and– Escort capability
Kitim
at LNG
Tug Requirem
ents
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Kitim
at LNG
Tug Escort
Tug Escorts
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Kitim
at LNG
Tug FirefightersFire Fighting Tug FiFi 1
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Tugs Required for Kitimat LNG
• Kitimat LNG will require four tugs• Kitimat LNG negotiated a benefits
agreement with the Haisla First Nation this spring
• The Haisla aim to supply tug services to the terminal and are in deliberations with a potential partner
Kitim
at LNG
Tugs
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North and South Routes to KLNG Kitim
at LNG
Shipping R
oute Alternatives
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• Safe and navigable access by water from Douglas Channel from the coast• Two possible routes :
– from the north via the Principe Channel ( approximately 120 nautical miles) and,– from the South via Squally Channel (95 nautical miles)
• Northern Route preferred by BC Coastal Pilots– Sufficient width allowing 2 ocean going vessels to pass each other at safe and
adequate distance– Sufficient depth – no turns greater than 900
– Underkeel clearance in excess of 15 % of the deepest draft– Additional navigational aides may be required
• Southern Route acceptable if Northern Route has interference• Usual transit time from Triple Island to Kitimat is approximately 16 hours• Pilots will board at Triple Island – situated 21 miles west of Prince Rupert
Navigation routes to Bish Cove Kitim
at LNG
Navigation R
oute Alternatives
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• Physical criteria for the safe operation of LNG tankers is based on considerations presented by :– TERMPOL– Society of International Gas Tanker and Terminal Operators ( SIGGTO)– Oil companies International Marine Forum ( OCIMF)– International Navigation Association ( PIANC)– BC Pilots– Canadian Coast Guard
• Safety and security of the ship is paramount at all times – both in transit and at the berth– an exclusion zone of 500 m has been assumed for the KLNG project
• Excellent safety record to date and has to be kept that way.• The safety record is not by accident but by a proactive approach by the
industry• Kitimat LNG will adhere to best practices in both the on-shore and marine
environments• Safety is the KEY
Safe Operation of LNG tankersK
itimat LN
G S
afe Operation
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www.kitimatlng.com
Kitim
at LNG