sub 161 virtual gas pipeline solutions
DESCRIPTION
Michael Fichardt, Head Business Development Africa, Sub161 gave this presentation at the 4th annual Mozambique Coal conference, the very first event to focus on the coal industry in the Mozambican region and has had the support from the Mozambique Government since the inaugural event in 2010. With 300+ attendees each year, this event sees geographical delegate representation as diversed as Australia, South Africa, India, Bostwana, Canada, United-Kingdom, Egypt, Indonesia, Pakistan, United Arab Emirates USA, Singapore, Thailand, Japan, and of course Mozambique. For more information about the annual event, please visit www.immevents.com/mining-conference/mozambique-coal-conferenceTRANSCRIPT
July 2013
Virtual Gas Pipeline Solutions
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Sub161 introduction
Provides cost-effective, environmentally-friendly Natural Gas solutions to users of diesel and other crude-based fuels for power generation
Business model centres around delivering Natural Gas to areas not supported by gas pipeline infrastructure
Significantly cheaper than standard diesel and 25% less carbon emissions
Using conventional Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) technologies
Plants designed for flexible mobile solutions without jeopardising plant efficiency
Principals are Nathan Mitchell (Chairman) and Angus Karoll (CEO) who have 20 year track records of success in energy and related businesses
Very experienced team with deep financial, commercial, technical and operational skills
Sub 161 is developing projects in Australia, Tanzania, doing due diligence in Nigeria, and Ghana
Looking for opportunities in Mozambique
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Industry experience: 20 years
• Executive Chairman and Founder of Westside Corporation Ltd (ASX: WCL)
• Initiated the development of a world-scale downstream processing project for ammonia urea in Asia
• President Director and controlling shareholder of PT Westside Agritama, a major provider of logistics and transport services in Indonesia
• Director- Westside Corp. Ltd (ASX: WCL)
I
Industry experience: 25 years
•Owner/CEO – Mitchell Group of companies (Drilling, Ports, Energy, Equipment)
•1989-2008 Mitchell Drilling Contractors (MDC) CEO (2005-2008)
•2003-2008 doubled size of MDC and directed international expansion 2003-2008 doubled size of MDC int and directed international expansion into India, China, USA, Zambia
•Directorships- Tlou Energy Pty Ltd (ASX:TOU), Westside Corp. Ltd (ASX: WCL), VMW Engineering Pty Ltd, Tom Browne International Pty Ltd.
Developing small scale natural gas projects
First mover advantage in relation to partnerships and service providers to enable quick commercialisation of opportunities
Focused on smaller quantities, typically overlooked by industry giants, supplying gas to remote areas for power generation
Highly flexible solution for mobilisation / demobilisation
Small scale distribution – fills niche market of remote diesel replacement and suited to small to medium sized gas resources insufficient to warrant pipelines or as an interim step while pipelines are being developed
Short plant lead time: Sub161 pre-commitments for critical components allows an accelerated construction period
Strong team with deep financial / negotiation / technical and operational skill sets
Competitive advantage Introducing Sub161’s principals
Nathan Mitchell
Chairman
Angus Karoll
Chief Executive Officer
Entrepreneurs with strong operational backgrounds in energy businesses. Proven track records of success in gas businesses
Significant focus on small scale CNG and LNG in order to identify flexible, mobile and fast solutions to get gas to market
Significant financial commitments to Sub161
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Operating through vertically integrated entities, Mitchell Group assimilates knowledge and leverages off existing specialised capabilities in the coal and energy industry to add value to projects.
Mitchell Group Holdings (MGH) is an Australian company that provides corporate services to the Mitchell Group of companies. The Group operates at a global level through entities that specialise in the development and operation of port infrastructure, the delivery of unconventional energy outcomes, and the hire of drilling-related equipment.
Mitchell Ports specialises in the identification, development and operation of flexible marine solutions to provide export capacity for the resource sector.
ME targets coal resources that are stranded by geological, geographic or commercial conditions. Through innovative clean gas extraction or coal conversion technologies, Mitchell Energy turns stranded coal into economically recoverable energy.
MDI is a specialist production and exploration drilling contractor. With over 40 years experience in the resource industry, MDI is an internally recognised expert in CBM, CMM and UCG.
MEH is a niche operator specialising in hiring Triplex Mud Pumps, Drilling Rigs, Compressors and Lighting Towers in Australia and abroad.
With Mitchell Group as a major shareholder, Sub161 is able to leverage off the Mitchell Group experience and capabilities in setting up and managing large international projects
Subsidiary of Mitchell Group
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Delivering greener, smarter & faster energy solutions around the world
Mitchell Group has been working in foreign countries for over 10 years and has set up and developed a number of international projects.
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WestSide Overview
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Commercial in Confidence
LEADING AUSTRALIAN CSG PRODUCER AND EXPLORER
• WestSide (WCL) is a leading Australian ASX listed gas explorer and producer
Owns 2P reserves of 221 PJ1
Operates fully developed 2P reserves of 443 PJ1
Potential to operate 1000 PJ 2P reserves (subject to funding)
• WestSide is currently considering a broad range of alternatives to maximise shareholder
value
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INTRODUCTIONStrategic Alternatives
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)
As at 30 June 2011
Development capability
Angus Karoll established WestSide Corporation Limited (ASX:WCL) and has developed it into one of the largest Australian producing coal seam gas (CSG) juniors.
Mitchell Drilling drilled exploration and production wells in early 2000
Angus assembled a highly skilled management and operations team at WestSide, undertaking integrated operations covering drilling, work overs, completions, pipelines and compression
WestSide gathers low pressure gas and compresses the gas for distribution through high pressure pipelines
WestSide owns and operates significant infrastructure, including:
– 5 compressor stations with 22,000hp installed capacity
– 110 production wells currently in operation
– Two pipelines with a total length of 160km and 60 TJ/of capacity
– Over 25 generators on site
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Virtual pipeline solution
GAS SUPPLY GAS PROCESSING
TRANSPORTATION
POWER SITES POWER GENERATION
Natural gas sourced from gas supplier Natural gas compressed into CNG or liquefied LNG at the gas processing facility
Land transportation via truck using specialised trailers, supplied by Sub 161
LNG regasified or CNG decompressed at the customer site ready for use
Natural gas is used for power generation and supplied to the customer under take-or-pay agreements
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Sub161 – opportunities for customers
2013 – Convert Power Generation (CNG or LNG)
Bi-fuel conversion of diesel generators or end of life replacement with
gas sets at mine site
Delivery of CNG or LNG infrastructure to the mine sites
Capex will depend on generation equipment and estimates to install bi-
fuel kits on the generator
Lower maintenance costs
CO2 reduction – green/clean/reduction in footprint
100% of mine locomotives converted to run on up to 95% gas
Maximising emissions reduction, fuel efficiencies and delivering further fuel and carbon cost savings
2014 – Convert Locomotives (LNG)
Mine haul truck fleets are able to be converted to run on gas (conversion at 95% not available until 2017), 60% conversion is currently available
Maximising emissions reduction, fuel efficiencies and delivering further fuel and carbon cost savings
Regardless of pipelines getting to the mines, there will always be a need for LNG at site for mine haul trucks in the future
2017 – Convert Mine Haul Trucks (LNG)
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Tanzanian project
Phase I of project source gas from an onshore gas well
Initially bring 6mmscf/d of stranded gas on stream
Enough for 25MW of power generation
Gas delivered to customers in Dar es Salaam
Initial CNG to test flow rates and commercial viability of the gas well
Phase 2 will see a small scale LNG facility built
gas to be delivered to areas in the interior of Tanzania, including Mwanza, Dodoma and Songea
Customers will include remote power generation sites and mining companies
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Western Australian project
Sub 161 is currently developing its WA Project
Gas for the plant will be sourced from one of the largest gas supplier in WA
Up to 15TJ/d of gas as will be compressed and delivered to customers within 250km of the facility
Gas transported to end customer using quad road trains
Gas is used as a diesel substitute for up to 50MW of power generation allowing the customers a 30% cost saving and reduces the CO2 emissions by up to 27%
Storage System
From Mother Station
CNG Trailer
Decant Panel
Compressor
Customer facilities
Gas Supply
Inlet Gas Dryer
Compressor(s)
Buffer Storage
Trailer Fill
Panels CNG
Trailers
To the Daughter
Station
Customer Site
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Eastern Australia project
Sub161 together with the Mitchell Group is providing a full gas pre-drainage and distribution solution
- Mitchell Group providing field development plan and drilling management and services
- Sub161 providing all equipment required to compress and transport gas to market
Sub161 will have a gas sale and purchase agreement to take gas on an “as available” basis with the coal mining company
Sub161 has sized the plant within a range to minimise any flaring of gas while maintaining the ability to take peak gas flow from wells
Coal mine provides the gas gathering system to the Sub161 facility
Sub161 plant and equipment located at the mine site and includes a truck loading area and road access for semi trailers
Gas is transported by truck to Sub161 customers
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Sub161 – opportunities in Mozambique
Connect onshore stranded natural gas to market
Replicate model from projects being developed in Tanzania and
Australia
Connect gas fields with the market through Sub 161 virtual
pipeline model
Capture CBM from coal fields
Build a small scale liquefaction facility
LNG to power mine haul vehicles
LNG to fuel locomotives
Transport LNG for remote power generation
Connect Coal Bed Methane to market
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Contact details
Michael Fichardt
Business Development Manager Africa
Cell (SA): +27 761880519
Cell (TZ): +255 756 373 305
Email: [email protected]