Natural Gas Utilization in Ghana. West African Gas Pipeline Project History and Technical Description

Transcription

1 atural Gas Utilization in Ghana West African Gas Pipeline Project History and Technical Description West African Gas Pipeline Company Ltd. Workshop on atural Gas - Abuja February 5-9, 2007 Welcome to this workshop and thank you for giving us the time to talk about the WAGP Project Key Messages Economic Community of West African State (ECWAS) proposed a atural Gas Pipeline across West Africa as key Regional Economic goal The World Bank confirmed viability of atural Gas Pipeline based on ample reserves of igerian atural gas and Regional Energy needs The four ations and West African Pipeline Company signed International Project agreement for the Development of the Pipeline FID was taken in Dec 2004 and construction has commenced in August 2005 Project is currently scheduled to flow Gas in 2007 Current oil price and WAGP declining tariff structure provide clear incentives to switch to gas 2 verview West African Gas Pipeline: 23 Years in the Making Historical Perspective bjectives and Benefits Technical Summary Existing ELP System Proposed WAGP System Typical Gas Specs Facilities Status and Schedule Construction Examples Economic Community of West African States (ECWAS) proposed a atural Gas Pipeline across West Africa as a key Regional Economic Goal 1992 World Bank Study confirmed viability of a atural Gas Pipeline based on ample reserves of igerian atural Gas and Regional Energy eeds 1995 Leaders of igeria, Ghana, Togo and Benin signed for the Development of the West African Gas Pipeline based on Private Investment and Commercial Principles GHAA T G B E I IGERIA 2000 The four ations signed Intergovernmental for a Harmonized Fiscal and Regulatory Regime for the Development, Construction and peration of the Pipeline 2003 The four ations and West African Gas Pipeline Company signed International Project for the Development of the Pipeline 2005 Construction of the West African Gas Pipeline Began 4 1

2 Project Fundamentals World Class Health, Safety & Environmental Standards Community Engagement Essential - in Progress Top otch Environmental Consultants (Intl & Local) Shareholder Funded Each Party Must Secure Funding ot Project Financed Built on Commercial Terms perating Philosophy Remote Monitoring and Controlled using SCADA via VSAT R&M Manned - 24 / 7 Main Control Lagos Beach Comp with Backup Control WAGP ffice Lagos Beach Compressor to be 24 hr Manned Must Provide Value to All Participants bligations must be Adequately Secured 5 6 Commercial and Legal Project Structure West African Gas Pipeline wnership Chevron West African Gas Pipeline Ltd. 36.7% SoToGaz BEGAZ VRA VRA CMS igerian ational Petroleum Corporation 25.0% Shell Ghana Benin igeria PC International Project * Technical Services Chevron WAPCo Shareholders WAPCo ELPS InterConnection World Bank MIGA,PIC Financial Guarantee Consent and Support Priority & Security Deed # WAGP Transportation Direct Gas Sales -Gas -Gas Shareholders GSA Guarantee Gas Supply Gas Supply Tolling -Gas Guarantors PC/Chevron JV PC/SPDC JV Shell verseas Holding Ltd. Takoradi Power Company Ltd. (VRA) BEGAZ SA Societé Togolaise de Gaz SA 18.0% 16.3% 2.0% 2.0% Togo Chevron GC ELPS Transportation Chevron PC Shell * Also Treaty Between States # Also Sellers and -Gas Guarantors 7 8 2

3 West African Gas Pipeline Company West African Gas Pipeline bjective: Transport igerian produced natural gas to commercially viable markets in Benin, Ghana & Togo. System Capacity: Initial 170 MMscfd Ultimate 474 MMscfd ew West African Gas Pipeline (WAGP) gas transmission system funded, owned and operated by shareholders, extending from the ELPS to landfalls in Benin, Togo, and Ghana. B GHAA T G E I Takoradi Tema Lomé Cotonou Lagos IGERIA Escravos Existing Escravos-to-Lagos Pipeline System (ELPS) Capacity: 800 mm SCFD owned and operated by igerian ational Petroleum Corporation (PC). Total Investment $635MM Pre-Development $ 75MM Construction $560MM Pipeline Start-up 4 th Qtr Benefits of WAGP Technical Summary - Study ptions Provides a low cost, sustainable fuel (and electricity) solution for Benin, Ghana, and Togo Fuel for existing and forecasted independent power plants; Fuel for industrial and commercial facilities Provides infrastructure as a catalyst stimulating direct foreign investment in new West African industries as well as provides trade opportunities for foreign exporters. Enhances the regional environment by substituting cleaner burning natural gas for less desirable fuels. GHAA T G B E I IGERIA Provides igeria and foreign investors an additional commercial markets for natural gas. Reduces gas flaring associated with oil production in igeria, contributing to reduction of greenhouse gases. nshore only from Alagbado ffshore only from Escravos nshore / ffshore from Alagbado nshore / ffshore from Alagbado was the preferred option Accelerates regional integration, economic growth and stability. Cornerstone of West African Power Pool

4 BEI IGERIA ELP System Schematic GHAA Takoradi R+M Tema R+M TG Lome R+M Cotonou R+M Base scope begins at Alagbado Tee Tie-in on ELPS Lagos Beach Comp Base scope includes Integrity study of Existing ELPS Pipeline PS 5 Alagbado PS Km Km Egbin ode PS Km PS Km PS 1 50 Km Km BE ffshore Mainline Description Escravos - Lagos Alagbado Lagos Beach Lagos Beach - Takoradi Distance (km) Diameter (inch) 36 / Escravos Gas Plant E/ Km C/ Km Warri GTP 32 Km Tema Spur Lome Spur Cotonou Spur 20 8 Base Case System Capacity: Initial 170 MMscfd Ultimate 474 MMscfd Sources of Gas Supply UTRGU WEST AFRICA GAS PIPELIE PRJECT MAI SHUTDW AD ISLATI VALVES Alagbado Custody Transfer Summary of Capacities for Base Customers VET 36 Bar To customer 36 Bar To customer 36 Bar To customer Bar To customer Mid-line Valve 40 Bar ame Initial Capacity (MMscfd) Ultimate Capacity (MMscfd) Initial Customer Minimum Delivery Pressure (Bar) Initial Maximum Delivery Pressure (Bar) VET VET VET VET 153 Bar FLARE (Foundation) Cotonou * 36* Takoradi R & M 38 Bar Tema R & M 48 Bar Lome R & M 102 Bar Cotonou R & M 129 Bar Lagos Beach Compressor 38 Bar Lome * 36* nshore ffshore Tema * 36* Subsea Valves Takoradi * *Gas delivery pressure can be as low as 28 bar 1 bar = psi / kg/cm

5 Typical Gas Composition - igeria Project Status and Schedules Methane Ethane Propane i-butane n-butane i-pentane n-pentane Hexanes Heptane+ C H 2 S Specific 60F et Heat Value (BTU/scf) Wobbe Index (et) Gross Heat Value (BTU/scf) Wobbe Index (Gross) 88.75% 5.93% 1.28% 0.26% 0.26% 0.09% 0.06% 0.06% 0.10% 2.55% 0.66% 0.00% 0.00% Contractors- Willbros nshore CPW Line pipe Bredero Shaw Concrete weight coating ffshore - Horizon WAGP-W-REP GIG ACTIVITIES ffshore EPC Contract FFSHRE Hydrotest of main line on-going Shore crossing at Takoradi Total offshore scope Joints Length (m) Joints Cumulative completion Length (m) % of Total SHRE Relocate line pipe from Choba Welding and laying the line pipe on the onshore segment Delivery of equipment skids and bulk materials Installation of equipment 8 lateral (Cotonou) 10 lateral (Lome) 18 lateral (Tema) 1,210 1,496 1,296 15,172 18,584 16,249 1,210 1,496 1,201 15,190 18,595 14, Main 45, ,855 45, , verall 49, ,860 49, ,

6 nshore EPC Contract PRJECT SCHEDULE verall Alagbado Tee 30 Mainline & Valve nshore EPC Contract- Construction Previous month (%) Earned Progress this month (%) Current Progress Complete (%) Free Flow 2 nd Quarter 2007 Full Compression 4 th Quarter LBCS Pipeline at Lagos Pipeline at Takoradi Takoradi R&M Tema R&M

7 Stringing of line pipe Welding of line pipe Laying of line pipe

8 Wetland crossing AT ILET SCRUBBER LBCS AIR FI CLERS LBCS METERIG SKID

9 WAGP ffshore Construction Examples Concrete Coating of Pipe FFSHRE SCPE Shore Crossings ffshore Pipeline Installation WAGP ffshore Construction ffshore Lay Barge Installation ffshore pipe haul barge loading operation at port Truck transporting pipe from Port to weight coating facility

10 ffshore Lay Barge - Pipe Material Barge Laying 10 Pipe ffshore Lomé Takoradi Shore Crossing Trenching

11 TAKRADI BERM CSTRUCTI & TRECHIG TAKRADI - TRECHIG WAPCo West African Gas Pipeline Company Pipeline Project History and Technical Description February