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Determining the Viability of a Small Scale LNG Project
The document discusses the viability of small-scale LNG projects, particularly in the Caribbean, highlighting Wärtsilä's extensive global presence and expertise. It addresses challenges such as small consumption centers, non-traditional LNG buyers, and the necessity of modernizing existing power facilities for LNG use. The report emphasizes the need for suitable sites, competitive pricing, flexibility in supply, and integration with renewable energy to ensure successful and bankable projects.
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Determining the Viability of a Small Scale LNG Project
- 1. © Wärtsilä Determining theViability of a Small Scale LNG Project Platts 16th Annual LNG Conference Houston, Texas, February 9-10, 2017 Presented by Sampo Suvisaari Wärtsilä Energy Solutions 1
- 2. © Wärtsilä February20172 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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- 5. The Challenges - Smallconsumption centers - Non-traditional LNG buyers - Variable demand - Low oil price at present SMALL SCALE LNG PROJECTS IN THE CARIBBEAN 5 © Wärtsilä February 2017
- 6. And increasingly… Renewable Energy THEALTERNATIVES 6 © Wärtsilä February 2017
- 7. © Wärtsilä LARGE, MEDIUMAND 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 MEDIUMSCALE 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
- 9. © Wärtsilä The “50MW Power Plant” 50 MW is a reasonably large power plant size for many of the smaller Caribbean islands SMALL CONSUMPTION CENTERS 9 February 2017
- 10. © Wärtsilä The challengeof 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
- 11. © Wärtsilä SMALL SCALELNG 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
- 12. © Wärtsilä EXISTING SMALLSCALE 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
- 13. © Wärtsilä Small scalesolution with bullet tanks © Wärtsilä13 February 2017
- 14. © Wärtsilä EXISTING SMALLSCALE LNG FACILITY WHERE LNG IS DELIVERED BY TRUCKS 14 February 2017© Wärtsilä
- 15. © Wärtsilä EXISTING SMALLSCALE LNG / DUAL FUEL WÄRTSILÄ POWER PLANT 15 February 2017© Wärtsilä
- 16. © Wärtsilä Sources ofLNG 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
- 17. © Wärtsilä Keys tosuccessful 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! SampoSuvisaari Regional Director, Latin America North and the Caribbean sampo.suvisaari@wartsila.com Wärtsilä Energy Solutions 18 February 2017