EnerSea Transport LLC

Transcription

1 CNG Marine Transport: The Emergence of a Third Major Gas Transportation Industry John Dunlop EnerSea Transport LLC Gastech 2005 Bilbao, Spain 15 March 2005

2 EnerSea Transport LLC Gas Transport and Storage service provider Privately owned; based in Houston, TX Experienced team of industry leaders World class partners & business relationships NIPPON STEEL

3 CNG Proven Technology SIGALPHA, Columbia Gas Since 1970 s CNG Land Transport Since 1980 s Public & Commercial NGVs Columbia Gas CNG Vehicles - Worldwide

4 Emergence of Modern CNG Advanced steel properties Offshore buoy systems Ship construction efficiency Classification societies & maritime administrations Promotion of CNG by motivated regulators Volume Optimized CNG technology

5 CNG Transport System Loading Terminal CNG Carriers Delivery Terminal Gas Storage

6 New Generation CNG Carriers EnerSea VOTRANS tm Trans Canada GTM Knutsen PNG Williams Coselles

7 VOTRANS TM Volume Optimization Proprietary CNG Breakthrough Store gas at optimum temperature-pressure Reduced compression Reduced steel Increased storage efficiency: % greater storage capacity than high pressure CNG designs Z factor, compressibility Rich Gas -20 o F Lean Gas Mass = Vol P ZRT Pressure, psia Hi-pressure, Ambient Storage

8 Technology Acceptance & Marine Standards Developed Maritime Class Societies initiatives to support CNG transport implementation: DNV: CNG carrier Rules issued ABS: CNG carrier Guide issued Prototype Testing underway To be completed in 2Q 2005 International institute established devoted solely to CNG (Centre for Marine CNG) Class Approval in Principle designations have been granted for CNG carriers

9 A World of CNG Opportunities

10 Reduce Reserves Threshold <1 to 4+ Tcf Reserves Reduce Reservoir Appraisal Highly Scalable Capture Upside Mitigate Risk LNG Targets CNG Targets TCM BCM 30 to 150 BCM 15 to 30 BCM 7.5 to 15 BCM 3 to 7.5 BCM 0.3 to 3 BCM All Others Source: HIS Energy Group World s Gas Fields by Size ex N America Enhanced Asset Management Improved Risk-weighted NPVs

11 Commercial Viability 600 Project Rate (MM scf/d) $ $2.50/mmbtu total transport tariff Incl. CNG fleet and loading/offloading terminals One-way Transit Distance (km)

12 Unique CNG Transport Applications Direct offshore gas field offtake Deep and ultra-deep water fields Associated gas Uncertain reserves volumes Dynamic & new gas markets Limited LNG receiving terminal access

13 Direct Offshore Loading System Courtesy Bluewater Low cost, proven systems Subsea flowline & flexible riser Applicable in deep & ultradeep water Single or dual buoys (continuous production)

14 Low Cost Delivery Terminal Access Simple, proven and highly cost effective Safe & secure - offshore operations Eases application approvals

15 Where will CNG be used? Some EnerSea Efforts Recent Feasibility Studies: South America Atlantic Canada Unocal Philippines S.E. Asia Associated Gas New Zealand (OSL/Itochu) U.S. Ultra-Deepwater Feasibility Studies Underway: Med Import Study - India IndiaGas GasImports Imports(GAIL) (GAIL) MarathonOil Oil - Marathon Specific Project Initiatives: White Rose Pre-FEED (Husky) PNG-New Zealand Pre-FEED (OSL/Itochu)

16 Gas Production/Storage/Shuttle Gas produced Direct-to-Ship Field operations & production support onboard Gas storage & transport system Eliminates deepwater pipeline, other infrastructure meters water

17 Recently Announced EnerSea Project New Zealand Gas Imports Client: Oil Search & Itochu Source: Papua New Guinea Rate: up to 200+ MMscfd Status: - Feasibility study completed - OSL developing offtake agmts. - Completing downstream infrastructure studies

18 Atlantic Canada Project Development White Rose Gas Offtake Field Operator: Husky Energy Rate: MMscfd Associated Gas Status: - Screening studies completed - Pre-FEED underway

19 Summary CNG transport is an important new gas solution Technology advancements have greatly improved CNG economics Worldwide CNG applications are being pursued CNG transport is ready for project deployment

20 CNG vs. LNG Comparative Risk Assessment LNG Liquefaction Loading Port Departure Transit Port Arrival Discharging Regasification CNG Compression & Refrigeration Loading Buoy Departure Transit Buoy Arrival Discharging Decompression Class Approval-in-Principle (Granted April 2003) VOTRANS is deemed to have an equivalent order of magnitude of risk as LNG, with a slight risk management advantage since all risks are offshore

21 Recently Announced EnerSea Project New Zealand Gas Imports Client: Oil Search & Itochu Source: Papua New Guinea Rate: MMscfd Status: - Feasibility study completed - OSL developing offtake agmts. - Completing downstream infrastructure studies