This document discusses the viability of small scale LNG projects in the Caribbean region. It notes several challenges for the region, including small consumption centers, non-traditional LNG buyers, variable demand, and currently low oil prices. It then provides examples of small scale LNG infrastructure solutions that have been implemented elsewhere, including an LNG terminal in Finland and examples of power plants that have been converted to run on LNG. The document argues that solutions involving barges or trucks delivering LNG to smaller facilities can be viable options for the Caribbean. It also stresses the importance of having a flexible LNG supply that can adapt to variable demand.

1. © Wärtsilä
Determining the Viability of a
Small Scale LNG Project
Platts 16th Annual LNG Conference
Houston, Texas, February 9-10, 2017
Presented by Sampo Suvisaari
Wärtsilä Energy Solutions
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2. © Wärtsilä February 20172
Wärtsilä is a leading provider of complete life-cycle marine, energy and
LNG solutions and services to customers globally.
• Wärtsilä Power Plants
Power Plants Installed Base:
• Over 63 GW in 176 countries
• 4200 MW in Central America and the Caribbean
• In 2016, Wärtsilä's net sales totalled EUR 4.8 billion with
approximately 18,000 employees. The company has
operations in over 200 locations in more than 70 countries
around the world.
• Publicly listed company in Finland (Nasdaq Helsinki).
THIS IS WÄRTSILÄ

3. © Wärtsilä
NORDIC EXAMPLE: TORNIO MANGA LNG
50,000 m3 small scale LNG
terminal in Finland
100 MEUR EPC by Wärtsilä
• Small Scale does not necessarily
mean a higher cost per storage unit
3 February 2017

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THE CARIBBEAN
February 20174

5. The Challenges
- Small consumption centers
- Non-traditional LNG buyers
- Variable demand
- Low oil price at present
SMALL SCALE LNG PROJECTS IN THE CARIBBEAN
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6. And increasingly…
Renewable Energy
THE ALTERNATIVES
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LARGE, MEDIUM AND SMALL SCALE VALUE CHAINS
© Wärtsilä7 February 2017
http://www.wartsila.com/twentyfour7/in-detail/lng-value-chain-optimisation-case-aruba
Read more at

8. © Wärtsilä
DEDICATED MEDIUM SCALE TERMINAL FOR SINGLE POWER PLANT
• A dedicated LNG terminal that can receive full scale LNG carriers can be feasible for power
plants of about 200 MW and larger.
© Wärtsilä8 February 2017

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The “50 MW Power Plant”
50 MW is a reasonably large
power plant size for many of the
smaller Caribbean islands
SMALL CONSUMPTION CENTERS
9 February 2017

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The challenge of the “50 MW Power Plant”
- Usually an existing facility, not a
greenfield project. The facility may
not be ready for LNG/gas use
immediately. A conversion or
modernization may be required.
- Typically will require liquid fuel
backup being in an island.
- Low oil price at present does not
help justify conversion costs by
economic reasons alone.
- LFO and ULSD cases most
feasible.
SMALL CONSUMPTION CENTERS
10 February 2017

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SMALL SCALE LNG STORAGE IN A BARGE
• A small scale LNG storage barge, or FSRU barge may be ideal for certain protected locations.
© Wärtsilä February 201711 February 2017

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EXISTING SMALL SCALE LNG / DUAL FUEL POWER PLANT
Example of a protected site for a barge. This barge (just below the second bridge) is a 110 MW
combined cycle (Wärtsilä Flexicycle) dual fuel engine power barge without onboard LNG storage.
© Wärtsilä12 February 2017

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Small scale solution with bullet tanks
© Wärtsilä13 February 2017

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EXISTING SMALL SCALE LNG FACILITY WHERE LNG IS DELIVERED BY TRUCKS
14 February 2017© Wärtsilä

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EXISTING SMALL SCALE LNG / DUAL FUEL WÄRTSILÄ POWER PLANT
15 February 2017© Wärtsilä

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Sources of LNG available for Small Scale Projects:
• Onshore hubs such as e.g. AES Dominicana.
• FSRU hubs such as e.g. SPEC/Promigas FSRU in Cartagena, Colombia.
• Small Scale Friendly Export Facilities (such as Eagle LNG, Florida).
• And the future could be: LNG carriers acting as dynamic, dedicated floating hubs (an “LNG Uber”).
KEY QUESTION: WHERE WILL THE LNG COME FROM?
© Wärtsilä
16 Photo © Wärtsilä Photo © Hoegh and Promigas

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Keys to successful projects within this environment
- Site suitable for cost effective infrastructure.
- Good source of LNG & competitive cost of delivered product.
- Price indexation of delivered gas according to customer needs.
- Flexibility of supply without heavy financial costs or penalties for volume
adjustments.
- Value from other incentives than fuel cost (environmental & diversification
reasons).
- Effective integration with renewable energy (gas & gas engines are ideal
due to fast start capabilities).
How can projects be bankable?
- Involve existing value chains
- Supplier flexibility
- Have a Plan B
17 February 2017

18. © Wärtsilä
Thank you!
Sampo Suvisaari
Regional Director, Latin America North and the Caribbean
sampo.suvisaari@wartsila.com
Wärtsilä Energy Solutions
18 February 2017