Upload
haque
View
215
Download
0
Embed Size (px)
Citation preview
Liquefied Natural Gas Ltd 5 Ord Street, West Perth Perth 6005 Western Australia Tel: (618) 9366 3700 Fax: (618) 9366 3799 Email: [email protected] Website: www.lnglimited.com.au ABN: 19 101 676 779
24 February 2009 The Announcement Officer Australian Stock Exchange Limited Exchange Plaza 2 The Esplanade Perth WA 6000 Dear Sir / Madam Liquefied Natural Gas Limited We attach a copy of a presentation in Brisbane on 24 February 2009 to the Gladstone Resources Industry update. Yours faithfully
David Gardner Company Secretary
For
per
sona
l use
onl
y
GLADSTONE LNG leads the waywith its first LNG shipment in 2012
For
per
sona
l use
onl
y
Development of “mid-scale” LNG projects of up to 1.5 million tonne per
annum (Mtpa) production capacity per LNG train, based on:
� Gas Access: gas fields seeking international gas pricing,
insufficient local energy demand, too small, far from energy
markets and/or reserves insufficient to support traditional large-
scale LNG plant (require multiple trillion cubic feet of gas)
� Project Location: target sites that are close to low cost gas source,
existing infrastructure, availability of suitable sites with access to
deep, protected water,
� LNG Markets: targeting existing LNG markets in close vicinity to
Project location
LNG Business Model
LNG Limited offers a complete “LNG package/solution”structured for the benefit of all stakeholders
For
per
sona
l use
onl
y
� Smaller land access requirement, increases ability to strategically
locate LNG plants closer to existing infrastructure and sheltered
deepwater access (lower associated infrastructure costs)
� Proven uncomplicated & highly efficient single mixed refrigerant
process with lower equipment count, easier installation, operation &
maintenance (including faster shut down and start up) and faster
construction
� Use of membrane tank technology delivering a lower construction
cost and faster construction schedule
� Smaller project size and uncomplicated contracting (potential only 1
LNG buyer) reduces period to complete detailed (bankable) feasibility
study and achieve financial close
� All of the above advantages leads to a faster project delivery
schedule, thus lower overheads and financing costs
Advantages of Mid-Scale LNG Projects
For
per
sona
l use
onl
y
Project Background
� 2001: LNG Ltd commenced planning of mid scale LNG projects
� 2004: LNG Ltd first considered coal seam gas (CSG) for LNG export
� 2006: Maturity of CSG production in Queensland
� 2007: LNG Ltd signs HOA with Arrow for gas supply
Project site identified with Gladstone Port Corporation
EOI provided by Golar LNG and others for LNG offtake
� 2008: LNG Ltd commences voluntary EIS approvals process
Signs with LOR / SKEC as preferred EPC Contractor
Signs site Licence Agreement with GPC
� 2009: LNG Ltd signs HOA with Golar LNG for LNG offtakeFor
per
sona
l use
onl
y
Arrow Energy Ltd / AGL GLNG PL GPC
Licence Agreement for Site signed August 2008with Gladstone Port Corporation
Project Scope
For
per
sona
l use
onl
y
Source: Arrow AGM Presentation 2008
For
per
sona
l use
onl
y
Gas Supply
Entire gas supply (Train 1) is covered under proposed Gas Sale
Agreement with Arrow Energy. Material terms / conditions are:
� Parties: Arrow Energy and Gladstone LNG Ltd
� Maximum Daily Quantity: 257 TJ / day after initial 24 month
ramp-up period
� Annual Contract Quantity (ACQ) – (45PJ yr 1, 75PJ yr 2 and
thereafter 90PJ/yr for 12 years
� Delivery Point: Gladstone LNG’s Plant
� Gas Price: floor with oil price upside agreed
For
per
sona
l use
onl
y
The Coal Seam Gas Challenge
� Little or No Proven Gas Reserves at Financial Close (all 2P / 3P)
� The low heating value of Coal Seam Gas
� Potential multi-user gas pipeline, requires careful plant design
� Variable gas composition over production term
� Ramp up of coal seam gas requires 12 to 24 months to reach
required contractual volumes
� LNG Plant shutdown may cause major issues upstream
� Relative new industry in Australian with limited experience
� LNG is a very conservative industry
For
per
sona
l use
onl
y
CSG – Reserves / Deliverability
� Largely mitigated by implementing a mid-scale LNG project
� Quantity of CSG required is realistic and achievable
� Accommodation of ramp up, as opposed to large scale LNG projects
� Mid scale trains easily duplicated as reserves and deliverability increase
CSG - Quality and Pressure
� Extensive gas quality testing program requested from Arrow to minimise
risk of “off-spec gas” being delivered
� LNG plant capable of tolerating gas quality beyond current CSG spec
� Gladstone LNG / Arrow have agreed minimum delivery pressure
Gas Delivery to Gladstone Project Site
� Pipeline Licence already granted to Arrow / AGL (from Bowen Basin)
� PL variation underway for 5km lateral from Gladstone Gas Gate to Site
� Only LNG Project that has pipeline approval to Gladstone (from Bowen)
� Pipeline Licence under development from Surat Basin
Working with Coal Seam Gas
For
per
sona
l use
onl
y
Co-ordinates are estimates only and are subject to CQPA approval and final survey
Project Site, Fisherman’s Landing
For
per
sona
l use
onl
y
Advantages of Fisherman’s Landing
� Natural deepwater harbour
� Protected, no need for breakwater infrastructure
� Under-utilised existing Wharf #5 available for LNG export
� Existing infrastructure (roads, water, etc)
� Existing dredging approvals for Targinie Channel
� Future potential for additional Land (expansion project)
� Only LNG project in Gladstone that can potentially commence
construction next year, and be operational in 2012
� Avoidance of “Curtis Island” type issues
For
per
sona
l use
onl
y
* Based on A$ to US$ exchange rate of 0.80, excludes Arrow and GPC’s scope
LNG Project Overview
� Location Fisherman’s Landing 25ha site, Port of Gladstone, Qld
� Gas Supply Arrow Energy (coal seam gas) delivered to Gladstone
� LNG Offtaker Golar LNG
� Capacity First Train of 1.5 million tonnes per annum
� Capital Cost: ~ US$500* million, including owner’s and financing costs
� Process Optimised Single Mixed Refrigerant Process (OSMRTM)
� Storage: 1 x 180,000m3 Membrane storage tank (net capacity)
� Contractors SKEC and LOR (preferred)
� Port Facilities Gladstone Ports Corporation
� Ownership Shareholding at Financial Close likely to be 40% LNG Ltd,
40% Golar LNG; and 20% Arrow Energy
� Funding US$250 million equity / US$250 million debt (proposed)
� Schedule Financial Close end of 2009, LNG Sales 2012
For
per
sona
l use
onl
y
OSMRTM Process
Mixed
Refrigerant System
MR Cooler (x2)
BOG
Compressor (x2)
Feedgas
LNGShip
Loading
CHP Plant
Inlet Air
Chiller
Suction
Scrubber (x2)Once
Through
Steam
Genertor
Gas Sweatening Plant
Dehydration
PlantChillerHeater
LP Fuel(Aux Boiler)
Gas Turbine Compressor (x2) HP Fuel
Process
Steam
Ammonia
Refrigeration
Plant
Plant
Power
CO2
H2 0
Marine
Flare
Ammonia Refrigerant
Aux Boiler
MR Make-up
OSMRTM
PROCESS
Amine
Regen
STG
ACC
BFW
Pump
LNG Storage
& Ship LoadingLNG Tank
LNG Pumps (x4)
H2 0
Cold
Box
(x2)
Grid
Power
To Cold
Box # 2
From Cold
Box # 2
For
per
sona
l use
onl
y
Membrane LNG Storage Tank
� 1 x 180,000m3 Membrane storage tank (net storage)
� Lower capital cost than conventional LNG tank technology
� Shorter construction schedule than conventional LNG tank technology
� Comparative risk assessment report completed, stating that when
comparing the membrane tank concept to the full containment tank
concept “these two tank types are considered to provide some of the
highest integrity options for above ground refrigerated liquefied gas
storage”
� Quantitative Risk Assessment near completion
� Historically, membrane tank acceptance hindered by lack of accepted
standards. Post 2006, European Standard EN 14620 developed, LNG Ltd
believes future LNG projects will consider membrane technology as a
serious alternative
For
per
sona
l use
onl
y
29 Membrane Tanks Already Built
For
per
sona
l use
onl
y
� Working with SKEC/LOR throughout 2008, jointly undertaking FEED
to ensure a definitive and seamless EPC contract can be concluded
� The approach eliminates interface issues caused by separate parties
undertaking FEED, EPC and providing technology
� Propose that SKEC and LNG Technology Pty Ltd jointly provide the
process guarantee for the OSMR process. SKEC to wrap into EPC
contract
� Strong relationship built with key equipment vendors
� SKEC undertaking procurement and takes full responsibility for
equipment and plant performance
FEED / EPC / Technology
For
per
sona
l use
onl
y
� Best solution - All aspects of the plant including gas pre-treatment, liquefaction, storage, utilities, construction techniques etc optimised and integrated. Numerous industry experts engaged to accomplish the best techno-economic solution
� Liquefaction system - single mixed refrigerant composition, flowrate and pressures optimised to match cooling curve and best fit standard available equipment. Proven SMR process used with numerous reference sites
� Efficient / Simple Process -Modern high efficiency gas turbines (MR compressors) and CHP plant utilised for utility power. Less equipment items required per train compared to alternative processes, resulting in low capital and low operating / maintenance costs
� High train availability – parallel compressors (MR and ammonia) used compared to compressors in series for alternative processes
� Government – no government assistance being sort, provides early start up benefits, sets the scene for the larger LNG projects in Gladstone
� LNG storage tank – uses membrane tank technology and concrete slip form construction technique to minimise construction time (critical path) and reduce costs
� Project Viability – at the floor price level
Summary of Benefits
For
per
sona
l use
onl
y
Port Infrastructure (GPC Scope)
� Port Interface being addressed under draft term sheets /
agreements, currently being reviewed:
� Commercial Port Users Agreement
� Agreement to Lease
� Licence for Services Agreement
� Engagement of GHD for Wharf Modification design
� Ship Simulation Work on-going to determine extent of dredging
requirements for
� Targinie Channel
� Swing Basin and berth pocket adjacent to Wharf #5For
per
sona
l use
onl
y
Typical LNG Loading Facility
For
per
sona
l use
onl
y
Dredging Required of:• Berth Pocket No.5• Swing Basin• Targinie Channel
Required Dredging by GPC
For
per
sona
l use
onl
y
LNG Off-take Agreement
� Parties: Golar LNG and Gladstone LNG Ltd
� Annual Contract Quantity: 1.5 mtpa, with 24mth ramp up period
Delivery Point: FOB from Gladstone
� Contract Term: matching GSA Term
� LNG Price: floor with oil price upside agreed
Entire LNG production (Train 1) covered under proposed LNG Sale and
Purchase Agreement with Golar LNG. Material terms / conditions are:
For
per
sona
l use
onl
y
Golar LNG Limited
� Golar LNG is LNG Limited’s largest single shareholder at 16%
� Golar LNG, with total assets of ~US$2.5 billion and 15 LNG ships, is
one of the world’s largest independent owners and operators of LNG
carriers with over 30 years experience
� Golar developed the world’s first “floating storage and regasification
unit” (FSRU) projects, based on the conversion of existing LNG
carriers and leads the FRSU industry in committed projects
� Golar LNG’s stated objective is to become an integrated midstream
participant in the LNG industry
� Golar LNG is listed on both the Oslo and Nasdaq Stock ExchangesFor
per
sona
l use
onl
y
1st Half 2009: FEED / EPC / Process Guarantee
� Project Execution Plan
� Finalise FEED
� Process Guarantee Agreement with SKEC
� EPC Contract (near completed draft) with SKEC/LOR
� Ship simulation modeling / Preliminary design for wharf upgrade
� EIS assessment report / Development Approval applications submitted
� Quantatative risk assessment report complete
2nd Half 2009: Agreements / Financial Close
All project approvals grant. Project contracts and financing documentation to
be signed and conditions precedent to initial drawing of the debt being
“satisfied” for the overall project (end-to-end from gasfield to port activities
to LNG offtake)
2012: First LNG Shipment
Milestones for 2009
For
per
sona
l use
onl
y
The information in this presentation is not an offer or recommendation to purchase or subscribe for securities in Liquefied Natural Gas Limited or to retain any securities currently being held does not take into account the potential and current individual investment objectives or the financial situation of investors was prepared with due care and attention and is current at the date of the presentation.
This presentation contains forward looking statements that are subject to risk factors associated with the gas and energy industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: price and currency fluctuations, geotechnical factors, drilling and production results, development progress, operating results, reserve estimates, legislative, fiscal and regulatory developments, economic and financial markets conditions in various countries, approvals and cost estimates.
All references to dollars, cents or $ in this document is a reference to US$, unless otherwise stated.
Disclaimer & Important Notice
For
per
sona
l use
onl
y