Oscar prieto (atlantic lng ) global benchmark by 2013

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Oscar prieto (atlantic lng ) global benchmark by 2013

  1. 1. Atlantic LNG: Global Benchmark by 2013 l b l h kb Colombia - Mar 22, 2010 Oscar Prieto, CEO, Atlantic LNG
  2. 2. World Energy Trends 44% Projected increase in j world marketed energy consumption Average annual increase Total World: 2% OECD: 1% Non OECD: 3% South America: 2.8%
  3. 3. World Energy Trends Energy Consumption by Fuel, 1980-2030 (quadrillion Btu) 50 History Projections Liquids 40 30 Natural Gas Coal 20 Nuclear 10 Nonhydro renewables Hydropower 0 1980 1990 2000 2005 2010 2020 2030 Projected demand growth: World S.A. SA Oil 1.4% 1.8% Gas 2.4% 3.9% Coal 2.4% 2 4% 2.9% 2 9% Nuclear 1.0% 0.5% Other 2.4% 3.3%
  4. 4. World Energy Trends Biggest increase in usage is expected in Power Generation
  5. 5. World Electricity Generation • Fossil fuels forecasted to play important role • Electricity power generation will account for 40% of all energy demand by 2030. • Natural Gas will remain an attractive option for power generation
  6. 6. Natural Gas: environmentally friendly Fossil Fuel Emission Levels - Pounds per Billion Btu of Energy Input Pollutant Natural Gas Oil Coal Carbon Dioxide 117,000 164,000 208,000 Carbon Monoxide C b M id 40 33 208 Nitrogen Oxides 92 448 457 Sulfur Dioxide 1 1,122 2,591 Particulates 7 84 2,744 Mercury 0.000 0.007 0.016 Source: EIA - Natural Gas Issues and Trends 1998
  7. 7. Natural Gas: economical option • Natural Gas vs Oil current assumptions – World oil prices to return to previous high levels after 2012 and to remain high through 2030. – World natural gas prices to remain suppressed with the impending glut in LNG market – Long Term: oil at US$70/barrel (or $12/mmbtu equivalent) for 2013 2018 2013-2018 – Long Term: natural gas at $5-$6/mmbtu
  8. 8. Actual and forecasted energy prices Energy Prices 2004-2018 18 16 14 12 $/mmbtu 10 Brent Nymex HH 8 6 4 2 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year Source http://www.cmegroup.com/
  9. 9. Natural Gas in South America • EIA forecasts that natural gas will be the fastest- g growing energy source in Central and South America • Several countries intend to increase use of natural gas for power generation to diversify electricity fuel mixes • N t l gas pipeline infrastructure is in place in the Natural i li i f t t i i l i th region, but concerns about supply security have prompted development of LNG regasification terminals
  10. 10. South America LNG Imports • Argentina: – Commissioning of the Bahia Blanca GasPort LNG facility, South America's first ever LNG receiving facility and the world's second dockside regasification facility, with the initial capacity to import up to three LNG cargoes per month, each of which will contain approximately 3 Bcf of gas. • Brazil: – Two LNG regasification Terminals at Pecem in the northern Brazilian state of Ceara and at Guanabara Bay in Rio de Janeiro – Considering a third LNG terminal by 2013 g y
  11. 11. South America LNG Imports • Chile: – Impo ted first LNG Cargo in September 2009 f om Atlanti Imported fi st Ca go Septembe from Atlantic LNG – 2.5 mtpa terminal in Quintero Bay with the capacity to meet up to 40% of the country's demand for natural gas. p y g – BG is a 40% shareholder in Chile's first LNG import terminal. The terminal is partial operation and expected to be in full operation by third quarter 2010. – Floating storage and onshore regasification: LNG Mejillones (Chile): construction works started in April 2008 is now operational. • Uruguay: – Considering LNG imports, as it looks to wean itself off costly fuel oil for power generation and to diversify its supply base.
  12. 12. Natural Gas in Colombia • Energy mix similar to that of Brazil • C Currently self-sufficient i natural gas and an exporter of natural gas tl lf ffi i t in t l d t f t l to Venezuela • Electricity generation uses a combination of coal natural gas and coal, hydropower. Drought is a challenge. • Energy usage forecasted to increase • LNG can provide a cheap, environmentally friendly means of supplementing Colombia’s growing energy needs and address the pp g g g gy drought challenge
  13. 13. LNG Regasification • A regasification facility is required for converting LNG back to natural gas for transmission though the pipeline g g pp infrastructure. • Options for regasification include: – Onshore regasification terminals – Offshore regasification terminals (2 types) • Fixed – G it b d structures Gravity based t t – Offshore Platforms – Artificial Offshore islands • Floating – FSRU (Floating Storage Regasification Unit) – Floating Regasification Unit (no storage)
  14. 14. LNG Regasification • Floating Storage Regasification Units (FSRU) provide an alternative to traditional onshore regasification. B ifi ti Benefits i l d fit include: – Faster return on capital invested through reduced planning and permitting. – Reduced construction time if option to convert an existing LNG vessel is taken. (E.g. 2 years from FID to delivery for Golar Winter and Golar Spirit vessels) vessels). – Can be moved from one demand centre to another to cater for seasonal or intermittent market demand. – Mitigates environmental and safety concerns around onshore regasification facilities.
  15. 15. LNG Regasification: FSRU example Golar Spirit - 129,000 m3 storage - 2.5bcm/year
  16. 16. LNG Regasification: FSRU example Golar Winter - 138,000 m3 storage - 5.1 bcm/year
  17. 17. LNG: a good strategic supply option • Stability of Supply – LNG h l diversify supply base and increase helps di if l b di reliability. – Past supply challenges: • Jan 2006 – Russian Gazprom cutting off pipeline natural gas supplies to Ukraine • Jan 2008 - Turkmenistan cut gas exports to Iran resulting in Iran cutting exports to Turkey. Subsequently, Gazprom i S b tl G increased natural gas d t l exports to Turkey. • Jan 2009 –A dispute with Ukraine led Russia to A curtail gas exports for 3 weeks.
  18. 18. Worldwide LNG Capacity Country # of Capacity Country Capacity Project Name Trains (mt/y) (mt/y) UAE 5.8 Adgas LNG 3 5.8 Algeria 20.3 Algeria LNG 21 20.3 Arun & Botang 14 28.8 Indonesia 36.4 Tangguh 2 7.6 T&T 15.4 Atlantic LNG 4 15.4 Brunei B i Brunei LNG 5 7.2 72 Damietta 1 4.8 Egypt 12 Egyptian LNG 2 7.2 Darwin 1 3 Australia 19.5 NW Shelf LNG S e G 5 16.5 65 Equatorial 3.7 EG LNG 1 3.7 Guinea Alaska 1.5 Kenai 2 1.5 Libya 3.2 Marsa El Brega 4 3.2 Malaysia 22.7 MLNG Satu Dua Tiga 8 22.7 Nigeria 21.8 Nigeria LNG 5 21.8 Oman 10.6 Oman LNG 3 10.6 Qatar Gas 5 25.3 25 3 Qatar 53.8 RasGas 6 28.5 Russia 4.8 Sakhalin LNG 1 4.8 Norway 4.2 Snohvit LNG 1 4.2 Yemen 3.4 Yemen LNG 1 3.4
  19. 19. LNG Plants coming on stream # of Capacity Cou t y Country Project Name oject a e Timeframe e a e Trains T i (mt/y) ( t/ ) Angola Angola LNG 1 5.2 2012 Australia Pluto LNG 1 4.3 2011 Australia A t li Gorgon LNG G 3 15 2014 Iran Iran (NIOC) LNG 2 10.8 2011 Norway N Nordic N di LNG 1 0.3 03 2010 Peru Peru LNG 1 4.4 2010 Qatar Gas & Q Qatar 3 23.4 2010 RasGas R G
  20. 20. Planned LNG Projects # of Capacity Country Project Name Timeframe Trains (mt/y) Indonesia do es a Abadi bad 3 8.5 Abadi LNG Australia Pacific LCSG (LNG) Bonparte Fisherman s Fisherman's Landing Gladstone-Santos LCSG Gladstone-Shell LCSG Australia 23 47.2 Ichthys LNG Sunrise LNG Wheatstone LNG Queensland Curtis LCSG Scarborough LNG Browse LNG Nigeria Brass LNG 11 30.4 Venezuela Delta Caribe 1 4.7 Canada Kitimat LNG Papua New Liquid Niugini 3 19.8 Guinea G Iran Pars LNG 2 5 Russia Shtokman LNG 2 7.5
  21. 21. Planned LNG Projects 39 Countries propose LNG Import Terminals • O l 22 countries currently import LNG Only ti tl i t • The number of LNG importers may double this decade • Argentina • Dubai • Japan • Romania • Bahamas • Estonia • Korea • Singapore • Bahrain • France • Kuwait • South Africa • Bangladesh • Germany • Malaysia • Sweden • Brazil • India • Mexico • Thailand • Canada • Indonesia • Netherlands • United Kingdom • Chile • Ireland • Pakistan • United States • China • Israel • Panama • Uruguay • Croatia • y Italy • p Phillipines • Cyprus • Jamaica • Poland
  22. 22. Introducing Atlantic LNG Atlantic LNG is the best option for Latin American supply
  23. 23. Who we are • World’s 7th largest LNG • A mould-breaking project production capacity • A key contributor to industry • Largest supplier of LNG inflection i t i fl ti point • A significant role in Atlantic imported by US arbitrage • Largest single contributor • A secure source of LNG to to T&T local exports global markets • High contributor to T&T • 1800 cargoes to date local GDP
  24. 24. Where we are located located Where we are • Plant Facility located in Point Fortin, South West coast of Trinidad and Tobago • Trinidad lies in the Caribbean Sea off the northeast coast of Venezuela. • Population: 1.3 million • Monetary Unit: TTD • Language: English (official) • Trinidad and Tobago is a unitary state, with a parliamentary democracy modeled after that of the UK. • Resources: Oil, Natural Gas
  25. 25. Each Train, different owners BP BG Repsol Suez / NGC YPF GDF Train 1 34% 26% 20% 10% 10% Train 42.5% 32.5% 25% 2/3 Train 4 37.78% 28.89% 22.22% 11.11%
  26. 26. Train Specifications Train 1 Train 2/3 Train 4 1st loading g Apr 30, 1999 p , Aug 12, 2002 g , Dec 15, 2005 , & Apr 28, 2003 Construction C t ti 965m 965 1.1b 1 1b 1.2b 1 2b Cost (USD) Capacity 3.0 mtpa LNG 3.3 mtpa LNG 5.2 mtpa LNG & 6000 bpd of & 6000 bpd of & 12,000 bpd NGLs NGLs each of NGLs
  27. 27. Global Liquefaction Capex ($/tpa) 1000 Greenfield projects 800 Expansion projects E i j t 600 ALNG 1 ALNG 4 400 ALNG 2/3 200 0 1998 2002 2006 2010 Source: Poten & Partners, BG Start up year
  28. 28. About our product • LNG FACTS: – Natural Gas is converted to LNG cooling it to -160°C – LNG is an odorless, non-toxic and non-corrosive liquid – LNG evaporates quickly and disperses, leaving no residue. residue – No cleanup required for LNG spills on land or water. – A volume reduction of 600:1 makes LNG one of the most efficient ways to get gas from source to destination. – LNG allows gas consumers access to vast natural gas reserves located over the globe. – LNG transportation is safe as it cannot be ignited
  29. 29. From Natural Gas to LNG Fuel System Feed Inlet Gas Separation from & Metering Fuel Pipeline Gas Boil-Off Regeneration Gas Gas G CO2 LNG Storage Acid Gas G Mercury y Liquefaction Dehydration and Removal Removal and Loading Refrigeration FEED PRETREATMENT NGL Recovery
  30. 30. East Coast Gas Supply Tobago T b Caribbean Sea Trinidad T i id d Port-Of-Spain Gulf Piarco Airport p Atlantic of Ocean Block 5A Paria Pt. Lisas BG/Texaco Dolphin San-Fernando Abyssinia Picton Galeota Point Mahogany 36”& 56” 36”& 56” Flamboyant Pt. Fortin Beachfield 30” Poui Cannonball Columbus 40 40” Immortelle Channel Amherstia Banyan Cassia Sparrow, Parang and Renegade
  31. 31. North Coast Gas Supply Orchid O hid Iris Poinsettia Tobago Chaconia DAB Hibiscus C a r i b b e a n Sea Port of Spain V enezuela 24” Trinidad Point Lisas Penal Point Fortin (LNG) Venezuela 0 50 km 24” BG natural gas line
  32. 32. Where our LNG goes (To be inserted: world map showing our buyers’ destinations) 9 5 4 12 3 10 6 7 8 1. Lake Charles 2. Gulf Gateway Energy Bridge 3. Elba Island 4. Cove Point 5. Everett 6. AES Andres (Dom Rep) & Penuelas (Puerto Rico) 7. Brazil 8. Chile 9. Spain Bilbao, Huelva, Cartagena, Barcelona) 10. Far East
  33. 33. Our Corporate Strategy
  34. 34. Some Atlantic Facts • Track record for delivery – Safely delivered over 1800 cargoes – Largest supplier of imported LNG to USA. – Close integration of production and shipping to ensure reliable delivery and no delays. – High customer satisfaction. – High plant reliability 95% in 2009 and projected 97% in 2010. • Geography g – Close proximity to Colombia translates into low shipping costs and less boil off. – Cargoes from Atlantic already delivered to Brazil, g y , Chile, Argentina
  35. 35. Some Atlantic Facts Shipping Data (North Coast of Colombia) Est. Ship Distance Transit Destination Source Cost (Nautical Miles) (days) ($/MMBtu) Co o b a Colombia Trinidad dad 905 2 $0, 0 $0,10 Colombia Nigeria 5012 11,5 $0,30 Colombia EG 5107 11,8 $0,31 Colombia Egypt 6012 14 $0,36 Colombia Qatar 9079 21 $0,74
  36. 36. Atlantic as a source of supply • 100% of our production is already committed to our Buyers, many of whom have 20 year contracts • However, many of our LNG Buyers are affiliated with our shareholders and as a result, LNG can be sourced through this avenue (as was done in the case of shipments to Chile, Argentina and Brazil). Brazil)
  37. 37. Conclusion • World energy demand forecasted to increase between 2010-2030. • Natural Gas is an economic, environmentally friendly fossil fuel which has an important role supporting growing energy p pp gg g gy demand. • Natural gas prices expected to remain lower than oil during this period making it an economic alternative. • LNG i a secure source of Natural Gas which can be G is f lG hi h b imported from many global suppliers.
  38. 38. Conclusion (contd.) • Colombia’s energy mix already includes natural gas. • Atlantic LNG’s location, reliability and reputation for working with buyers makes it a stable, economical choice as a supplier of LNG to the South American market. pp • Floating Regasification can offer timely economical means of accessing LNG • We have International shareholders who can be engaged to address your energy needs. dd d
  39. 39. Atlantic LNG: Global Benchmark by 2013 l b l h kb Colombia - Mar 22, 2010 Oscar Prieto, CEO, Atlantic LNG

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