Gas Compression Implementation: Economic Systems Comparison. Josh Malouf Energy Transfer Technologies, L.P.

Transcription

1 Gas Compression Implementation: Economic Systems Comparison Josh Malouf Energy Transfer Technologies, L.P.

2 Energy Transfer Technologies, L.P. Started in 2001 Energy Management by Means of TM Currently 42 Compressor Units in Operation, accounting for 20 Million KWHrs of Monthly Usage ~32 MW of Installed Compression Capacity

3 This is ESelectTM TM

4 The Changing Industry Environmental Regulation Cap and Trade?? Tightening Electric Markets Continued Decline in Generating Capacity?? Increasing Horsepower Requirements Decreasing Reserves?? Increasing System Efficiency What metric??

5 Historical Advantages to Electric Compression Electric Motor Reliability No combustion emissions End User does not have to permit typically Low Capital Cost Substantial increase as compared to a gas engine Motors are much cheaper than engines Low Cost of Maintenance Substantial Savings as compared to a gas engine

6 Historical Detractors from Electric Compression Starting Current Requires Over-Building the System Fuel Value Electricity Demand Electrical System Reliability Increased and Energy Costs Exposure to Outage No Leasing Market Requires direct capital investment

7 Four Types of Compression Systems Gas Powered Electric Powered Single Unit, Mutually Exclusive Gas and Electric Powered Units Train Two Unit, Mutually Exclusive Gas and Electric Powered Units

8 Model Parameters 1500 HP of CDP Gathering HP Two Stage Application, 15 MMscf/d Nominal Throughput Utilized 100% of the Hours Available at 100% Loading Leased Equipment Heat Rate Spread of 2,000 Btu/Hp-Hr for Gas Value and Electric Value Equivalency The Values Presented are for Discussion Purposes only

9 Capital Cost Electric Package Cost is Lowest However Requires more non-asset cost Train is Highest due to Level of Redundancy Gas Capital Cost is Lowest at TurnKey Level

10 Capital Cost Capital Costs Compressor Package Traditional Gas Electric Train 1,000, ,000 1,300,000 1,850, , , ,000 Electric Power Components Civil Installation 35,000 35,000 35,000 70,000 Mechanical Installation 85,000 85,000 85, ,000 5, , , , , , ,000 Electrical Installation Utility Service Infrastructure TOTAL 1,125,000 1,720,000 2,065,000 2,845,000 Monthly Expense 4,365 6,674 8,012 11,039 Annualized Expense 52,380 80,084 96, ,464

11 Maintenance Cost and Train Systems are most Expensive Due to Level of Complexity Electric Systems are Cheapest; very few moving parts Gas Engines Require Most Maintenance Time

12 Maintenance Costs Maintenance Costs Traditional Gas Train 4,500 4,500 4,500 4,500 9, ,500 9,750 5,625 10,125 15, ,000 67, , ,500 Engine Maintenance 4,500 Compressor Maintenance 4,500 Motor Maintenance Ancillary Equip Maintenance Monthly Expense Annualized Expense Electric

13 Life-Cycle Cost Gas is Most Expensive Electric,, and Train are all equal Due to Rebuild/Replacement cost of Motor

14 Life-Cycle Costs Life Cycle Costs (50,000 Hour Benchmark) Traditional Gas Electric Train 50,000 50,000 50,000 60,000 60,000 60,000 15,000 30,000 30,000 30, ,525 79,909 79,909 79,909 Monthly Expense 2,417 1,167 1,167 1,167 Annualized Expense 29,000 14,000 14,000 14,000 Engine Rebuild 225,000 Compressor Rebuild 50,000 Motor Rebuild Ancillary Equipment Rebuild TOTAL

15 Fuel Cost and Train are the Cheapest Fuel Systems by the Fact that they can Alternate to the Cheapest Fuel Gas And Electric require NO Energy Management

16 Fuel Cost Fuel Costs Natural Gas Traditional Gas Electric 56,943 Firm Electric Power Train 5,694 5,694 42,637 42,637 55,207 Interruptible Electric Power Optimal Fuel Cost 56,943 55,207 48,331 48,331 Monthly Expense 56,943 55,207 48,331 48,331 Annualized Expense 683, , , ,971

17 Possible Revenues Increased Throughput for Electric, and Train Systems Fuel Savings Available on and Train Systems Emissions Penalties for Gas Powered Units

18 Possible Revenues Intrinsic Costs Estimated Equipment Availability Traditional Gas Electric Train 95% 98% 99% 99% 81, , ,000 (1,667) (1,667) Increased Throughput Value Emissions Avoidance (16,667) Monthly Revenue (Expense) (16,667) 81, , ,333 Annualized Revenue (Expense) (200,000) 972,000 1,276,000 1,276,000

19 The Bottom Line or Train Systems are the best Net Cost Option given the Specified Parameters Electric Compression Actually Produces a Net Revenue given the Specified Parameters The Net cost of Gas Powered Systems is $60/Hp-Month

20 Net Total Cost Net Cost Monthly Expense (Revenue) Annualized Expense (Revenue) Traditional Gas Electric Train $96,252 ($4,721) ($27,481) ($14,968) $1,155,029 ($56,647) ($329,776) ($179,615)

21 Incremental Revenue Compared to Traditional Gas Revenues as Compared to Gas Traditional Gas Monthly Annual Electric Train -- $100,973 $123,734 $111, $1,211,676 $1,484,805 $1,334,644

22 Recommendations to End Users Know your Application Know your Electric Power Provider Base vs. Swing Loading Gas Streams Must Run vs. Interruptible Power Usage Interruptible or TOU Rates Off Peak vs. On Peak Service Capacity Actual Availability of the System Determine your Efficiency Metric Capital Cost for Horsepower Total Cost for Throughput Fuel Input for Work Output

23 Questions?