Transcript of "Asia Days 2013 - Market opportunities for small LNG distribution"
>>> Back to indexMarket Potential for Small Scale LNG Distributionand Use in AsiaIN Information Day / Norshipping6th June 2013 OsloEgil RensvikScience & Technology CounsellorRoyal Norwegian Embassy SingaporeInnovation Norway - South & SouthEast AsiaSource: Gasnor
>>> Back to index>>> Back to indexAsia2IndiaVietnamIndonesiaSingaporeUAESouthKoreaChinaJapanThailandMalaysiaInnovation Norway in AsiaThe PhilippinesTaiwanSri LankaSaudiArabiaIraqIranRussiaMongoliaYemenNepal
>>> Back to index>>> Back to indexInnovation Norway -The Commercial section of theRoyal Norwegian Embassy,presence in Asia• Tokyo• Seoul• Beijing• Shanghai• Hanoi• Bangkok• Kuala Lumpur• Singapore• Dhaka• Delhi• Abu Dhabi• Jakarta
>>> Back to indexAnalysis of LNG Opportunities in Asian Countries• Singapore• Indonesia• China• India• Bangladesh• Philippines• Vietnam4
Preparing for The Future –The New LNG Terminal in Singapore
>>> Back to index• The S$1 billion (NOK3,8 billion) LNGTerminal is located on a 30 hectare siteon Jurong Island• Initial Capacity: 3 mill tons/yrCan be expanded to 6 million• Construction starts in 2009• Operational in 2013• Electricity Generating Co. SingaporePower’s subsidiary PowerGas is awardedthe contract to build and run theTerminalJurong Island- Singapore’s Petrochemical ComplexCurrent Situation:80% of electricity is generated using piped natural gas from Malaysia andIndonesiaBalance 20% is from oilSingapore’s First LNG Terminal
>>> Back to indexOpportunities in Vietnam PetroVietnam has set the target to importthe first LNG cargo by: 2015 for Thi Vai 2018 for Son My The importation of LNG will diversify primaryenergy sources used for power production,reduce the dependance on coal and ensurenational energy security.22Source: DNV, 2012
>>> Back to indexCase Study Vietnam-Small scale LNG milk-route24 Once LNG developments mature in the South, a large scaleLNG receiving terminal facility could be considered for theNorth post 2020, opening up a second opportunity for anLNG FSRU Two LNG receiving terminals at both ends of the countrywould make supplying LNG to growing demand centres alongthe coast using small scale LNG vessels logistically possible In one example scenario, a small scale LNG vessel (20,000m3 – 50,000 m3) originating from the Southern facilitywould drop off LNG cargoes in a milk run fashion at smallscale LNG receiving facilities along the coast before calling atthe Northern facility After all cargoes have been dropped off, the vessel wouldthen call at the Northern facility, pick up fresh LNG cargoesand double back along the same routeSource: DNV, 2012
>>> Back to index32%10%52%1%5%INDIAOilGasCoalNuclearHydroWorld vs. Indian energy scenario34%24%29%5%7%WORLDOilGasCoalNuclearHydroSource : BP Statistical Review, June 2010
>>> Back to indexLNG Prospects in India• India is the 4th largest Energy consumer after US, China & Russia.• Primary energy consumption of India has more than doubled between1990 and 2011.• The Indian gas market is projected to be one of the fastest growing in theworld over the next two decades: the IEA forecasts gas demand toincrease at 5.4% per annum over 2007-30 reaching 132 billion cubicmeters by 2030.• The power sector is the fastest growing area for energy demand,increasing from 23 percent to 38 percent of total energy consumptionbetween 1999 to 2009.• India and China represented a combined 12% LNG market share in 2012.• The growing appetite for LNG in India and China resulted in 7.7% &12.2% growth in LNG import in 2012• Natural gas currently contributes 8% of total energy consumption and isprojected to grow up to 20% by 2030 in India.Source:- International Energy Agency
>>> Back to indexLNG in India beginning andgrowth• India began importing liquefied natural gas from Qatar in2004 and increasingly relies on imports to meet domesticnatural gas demand gaps.• In 2011, India was the 6th largest LNG importer with over5.3% of the global imports.• Gas consumption has grown at an annual rate of 10 percentfrom 2001-2011• The power sector and fertilizer sector drives the Natural GasDemand in the country. The government has identifiedthese as priority sectors, which ensures that they receivelarger shares of any new gas supply.
>>> Back to indexLNG in India reserves andnetwork• According to the Oil & Gas Journal, India had 43.8 Trillioncubic feet of proved natural gas reserves at the end of2012. About 30 percent of these are onshore reserves, while70 percent are offshore reserves.• The two most important companies operating Indias largegas pipeline system are GAIL and RGTIL. GAIL is a stateowned gas transmission & marketing company having 8000km (Source:- CRISIL) gas transportation infrastructure.Reliance Gas Transportation Infrastructure (RGTIL) is thelargest private sector gas transmission structure.
>>> Back to indexEvolving Energy Mix- IncreaseShare of GASSource:- GAIL
>>> Back to indexDemand Supply Outlook of LNG• Domestic natural gas supply to grow at a CAGR of 5.6 per cent over FY13-15 while gas demand to grow at a CAGR of 17-18 per cent thus aggravatingthe deficit situation.• LNG imports are expected to increase at a CAGR of 19 per cent over FY13-15 but will only partially meet the shortfall, despite huge LNG re-gasificationcapacity additions planned in the next 5 years.• India’s Gas demand supply gap projection necessitating import of LNG.Year 2015 2020 2030Gap indemandand supplyMMTPA14.175 22.05 40.95
>>> Back to indexExisting & Projected LNG Regas Capacity
>>> Back to indexExisting LNG Terminals in IndiaTerminal Partners Capacity Supply source Start updateDahej Petronet LNG (GAIL,ONGC, IndianOil and BPLC (each12.5%), GDFSuez (10%), ADB(5.2%) and privateshareholders (34.8%))10 mtpa Qatar – longterm (7.5mtpa)March2004Hazira Shell (operator, 74%),Total (26%)3.5 mtpa MerchantmodelApril2005Dabhol NTPC, GAIL, Indianbanks15 (28.3%each) and theMaharashtra stateElectricity Board(15%).5 mtpa(1 mtpainitially)Possible:Algeria, Qatar,Australia,Oman and AbuDhabi2010Total 18.5 mtpa
>>> Back to indexUnder Construction LNG Terminalin IndiaTerminal Partners Capacity Supply source Start updateKochi PetronetLNG2.5 mtpa 1.5 mtpa for 20 years fromGorgon, Australia (2014-15). Possibly Qatar, PapuaNew Guinea2012
>>> Back to indexPlanned LNG TerminalsTerminal Partners Capacity Start up dateDahej exp Petronet LNG 2.5 mtpa March 2014Hazira exp Shell, Total 6.5 mtpa TBNKochi exp Petronet LNG 2.5 mtpa 2014Mundra Port GSPC (75%),Adani Group(25%)6.5 mtpa 2012Mangalore ONGC & IOC 5 mtpa 2012Total 23 mtpa
>>> Back to indexPlanned LNG TerminalsTerminal Partners Capacity Start updatePipapav Port Essar Group,Swan Energy,possiblyGSPC GujaratPipavav PortLtd.Intends tobecome apartner5 mtpa 2013Ennore TIDCO, IOC 5 mtpa 2017Haldia Spice Energy 2.5 mtpa 2011Total 12.5 mtpa 37
>>> Back to indexScope for Small LNG Tankers &FSRUs• Demand for natural gas across the country insectors such as town gas and transportation inaddition to Industrial use and imported LNG canbe an important source.• Existing gas grid does not cover the entirecountry, particularly the coastal regions.• Delays in expansion of gas grid owing to right ofway problems & difficult terrain.• Large coastline of about 7500 kms offersopportunity for small LNG carriers and FSRUs.• Construction of small LNG Terminals at Andamanand Sri Lanka under consideration.38
>>> Back to indexOpportunities in India India plans to double its use of natural gas (LNG andCNG) over the next 10 years. Currently, India has two LNG terminals and another twounder construction. Small scale distribution will reduce the need of bigreceiving terminals. Beneficial in regions without any pipeline grids.39
>>> Back to index 40Norwegian LNG-related companies aredistributed across the LNG value chainSource: DNV
>>> Back to index41Liquefied Natural Gas (LNG) as fuel for shipsNorwegian experienceThe first LNG ferry Glutra 2000Two Supply Vessels 2003 (Dual Fuel)Two supply vessels 2009 (Dual Fuel)Two supply vessels on orderFive LNG car ferries 2007Three LNG car ferries 2009Three LNG car ferries 2010Seven new LNG ferries on orderThree military vessels in operation 2009
Höegh LNG – a fully integrated floating LNG service providerProduction Shipping Regasification DistributionExplorationLNG carriers LNG regasification vesselsFLNGLNG: Liquefied Natural GasSRV: Shuttle and Regasification VesselFSRU: Floating Storage and Regasification Unit Proprietary FLNG design Principle approval for a FLNGproject in Papua New Guinea Pre-feed agreement for an FLNGat Tamar field in Israel 5 standard carriers in operation 1 carrier acquired with delivery2Q 2012 (“LNG Libra”) Purchase option for 1 carrier withdelivery 2H2013(“STX Frontier”) 2 regasification vessels in operation 3 regasification vessels on order, of which 2 with long-term employmentsecured Options for additional regasification vessels 1 conversion candidate (“LNG Libra”)
Advantages of FSRU’s Can be located near to key offtake loads (powerstations, heavy industry) Scalable – add more vessel based storage withoutregas capacity Does not require large land tracts to be set aside Shallow or deep water options available, allproven mooring solutions Significant savings in time and money Simpler permitting Moveable – can be used to build up market andthen move to new location Base for small scale LNG distribution, nomodifications necessary
Advantages of using FSRU for small scale LNG New FSRU projects are being specified to includesmall scale capability Simple in operational terms Requires minor modification / upgrade to theFSRU FSRU ideal as LNG distribution centre: Offshore (typically) Easy access for small scale vessels Either for point to point or milk run distribution
>>> Back to index* Combined cycle electric power generation plant located on side units(Illust: Typically 220MW on each side unit)* For delivery of both gas and electric power to shore* Range of capacities: e.g. from 5 MW single units – to 2,000 MW gas powerstations w/ several modules47Regas & Power Generation Terminal
>>> Back to indexBergen Group Fosen ShipyardLNG Fuelled Ferry for Fjordline48
>>> Back to index 49Concluding remarks• Norway has demonstrated that small scale LNG production anddistribution is competitive as fuel for ships• LNG is available world vide and can be further distributed to asmall scale market (industry, maritime)• LNG is considered to be the main alternative fuel to fuel oils.• Asia will be the new large market for Small Scale distributionand Use of LNG.
>>> Back to index50Thank you for your attentionEgil Rensvik@Innovationnorway.noSingapore
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