Status Skanled. København 20 November Sten Arve Eide

Transcription

1 Status Skanled København 20 November 2008 Sten Arve Eide

2 Gassco Established by the Parliament in Owned 100 % by the Norwegian State The purpose was to create an independent, neutral company who could take on the responsibility of the gas transportation system: Operator System Operations Capacity Management Development of the system The Norwegian State Offices/operation in Norway, Germany, Belgium and France Employees: approx. 300 GASSCO 1. Operator 2. System operations 3. Capacity Management 4. Infrastructure development GASSLED ConocoPhillips Eni ExxonMobil StatoilHydro Petoro Total Shell Dong Technical Service Providers ConocoPhillips StatoilHydro Total Centrica

3 The Norwegian Upstream Gas Transportation System 7800 km of large diameter high pressure pipelines Riser platforms Onshore processing facilities (Kårstø and Kollsnes) Receiving terminals in Germany, Belgium, France and UK Gassco is an ISO and do not own any physical assets. Norway exports 100BCM gas annually Norway is the world s third largest gas exporter with >15% of European market Draupner S/E Kollsnes Kårstø

4 Regularity and security of supply Aggregate Availablity Downstrean nominations Field Operator Gassco Downstream Operator Aggregate Field nomination Nomination matching Availability Shipper Shipper Shipper Transportation nominations Gas sales nominations Shipper + Capacity Management Opflex and Lineflex = Planning and dispatching shippers gas nominations Monitoring of physical condition of the network Balancing handling of nominations and deliveries Blending of streams to meet sales gas specification Handling of upset situations taking compensating measures Pipeline Zeepipe (to Zeebrugge) Franpipe (to Dunkerque) Statpipe/Norpipe (to Emden) Europipe 1 (to Emden) Europipe 2 (to Dornum) Vesterled (to St. Fergus) Langeled (to Easington) Total Avail Technical Capacity [MSm 3 /d] Regularity 2007 [%]

5 Regulations, Procedures, Products in Gassled Regulations and guidelines for Skanled: Mandate given in Petroleum Regulations (Forskrift til Lov om Petroleumsvirksomhet) Terms and Conditions for Transportation of Gas in Gassled Booking Manual (Gassled) - booking principles according to regulations Shipper Manual (Gassled) - procedures for communication between shippers and Gassco Tariff regulation (stipulation of tariffs) Gassled Products LT Long term capacity Annual strip MT Medium term capacity Monthly strip ST Short term capacity Daily and within day Secondary Market Re-booking Services

6 Gassco s role in Capacity Management Allocate capacity to shippers in a transparent, fair & equitable manner Optimise the utilisation of grid Provide services to shippers to enable fulfilment of commercial contracts Capacity limitation of network Operational flexibility Capacity withheld by operator Spare capacity available for booking Booked capacity Hydraulic capacity Available technical capacity Committable capacity Bookable capacity Booked capacity

7 Re-booking services Shipper may not unbook capacity Either re-book to alternative destination or Sell on secondary market Rebooking is dependent on Capacity being available No transaction fees Shipper Rebooking of capacity Original destination New destination

8 Tariffs Tariff consists of: Capital cost element Operating cost element Capital cost element based on a reasonable return on capital invested Tariffs based on reserved capacity (take or pay) Entry/exit tariffs Entry/exit tariff system for rich and dry gas systems Zone based system (A, B, C, D, E) Service based tariff system for wet gas related services, e.g.: Extraction of liquid components CO 2 removal Area E" Kvitebjørn Area G" Visund Kvitebjørn Gas Pipeline Area F" Troll Gas Pipeline Area A" Nyhamna EXT Kollsnes Kollsnes Næringspark Statfjord Oseberg Gullfaks Veslefrikk Åsgard Area H" Vestprosess Brage Area B" Norne Heidrun Sleipner Njord Skarv Heimdal Draugen Haltenbanken West Snurrev. EXT ÅT Grane Jotun/Balder ETSL CSL Sleipner Kårstø Draupner Rogass Naturkraft FSL Area C" Entry point St Fergus K-lab Rich Gas Exit point Rich/dry point Process exit point Easington Dry gas entry point Ekofisk Area D" Gas exit point Dunkerque Dornum Zeebrügge Norsea EMS EXT: Extraction ERSL: EthaneTreatment, Storage and Loading CSL: Condensate, Storage and Loading FE: Fractionation Ethane FSL: Fractionation (propane/butanes/naphta), Storage and Loading CO 2 R: Carbon dioxide removal CO 2 K/B: Carbon dioxide blending H 2 S R Hydrogen sulphide removal

9 Main Capacity Increase Projects CO 2 Transport and Storage Transporting captured CO 2 emissions from gas fired power plants 2. Skanled A market driven project securing feed stock and new supply of natural gas to the industry and power & heat production 3. Gas Infrastructure Reinforcement Pre-feasibility study to assess the need, and alternative solutions for adding capacity, flexibility and increase regularity to existing infrastructure 4. Norwegian Sea Pre feasibility study to assess construction of new infrastructure compared to developing existing. - Current and potential future discoveries set the scene for further development of infrastructure from the Norwegian Sea

10 Kårstø serving the production fields Statfjord A, B og C G ullfaks A (gas inj) G ullfaks C Tordis satellitt Snorre A og B Vigdis Statfjord Nord og Øst Brage Veslefrikk (gas inj) Å sgard B Mikkel H eidrun (gas inj) Norne og Urd Kristin Njord (gas inj) Draugen (gas inj) Sleipner Øst Sleipner Vest Gugne Sigun Volve

11 Skanled history April 2005 Phase I Is there a commercial basis for transport of ethane and dry gas to eastern Norway (Grenland)? Gassco mandate from MPE December 2005 Phase II Transport system is extended to western Sweden 18 companies established a sponsor group for the further studies October 2006 Technical report Updated cost estimates and selection of pipeline route (40/40 estimate) January 2007 Transport system is extended to Denmark Signing of Main Terms for Transportation and Heads of Agreement Joint Venture Funding Agreement for further studies May 2007 E.ON Ruhrgas and PGNiG joined the project 100% ownership of the pipeline

12 Skanled history (cont.) June 2007 Ineos acquisition of petrochemical facilities at Rafnes and signals of full or a majority owner share in the Separation Plant at Rafnes January 2008 Concept study including cost estimates finalised (30/30 estimate) April 2008 Funding partners decided to start preparation for execution (FEED) Financing of further studies August 2008 Two contracts awarded to IKM cover project services and design and development for the planned pipeline system Ineos decided to drop the spiking of ethane concept

13 The Skanled System A market driven project securing feed stock and new supply of natural gas to the industry and power and heat production Section Capacity in - out MSm3/d Dimension Pipeline Inch Pressure in out Bar Length km Kårstø terminal for Skanled 20 Kårstø to Rafnes Rafnes to Jutland (4) Branch off Lysekil Branch off Vallby kile Branch off Varberg Bua 10 (0)

14 Ownership, Transportation Commitments and Investments Company Owner Share Skagerak Energi 20 % E.ON Ruhrgas 15 % PGNiG 15 % Energinet.dk 10 % Hafslund 10 % Østfold Energi 10 % Gøteborg Energi 8 % Agder Energi 5 % Swedegas 5 % Preem Petroleum 2 % Total 100% MSm³/d Booking 18.2 MSm³/d Ekspansjon Investment MNOK Pipeline Exclusive Receiving Terminals in Sweden and Denmark Schedule Project Sanction First Gas Milestone Companies with transportation commitment: Energinet.dk, E.ON Rurhgas, Gøteborg Energi, Ineos, Perstorp, PGNiG, Preem Petroleum, SIGC (Kemira, Höganäs, Stora Enso, Lunds Energikoncernen, Eka Chemicals, Trelleborg, Pilkington), Skagerak Energi, Statoil, Yara,

15 Project Governance April 2008; Start preengineering (FEED) Mapping and Business Plan Planning, permissions and agreements Execution and Operation Mapping Feasibility Study Business Plan Concept selection Pre- Engineering Execution Operation Market requirement Indicative CAPEX Indicative economics Studies up to White Paper no 47 Mandate to Gassco May 2005 Interested parties Business Model Technical evaluations Letter of intent: -Owners -Users Phase I 2005 Sponsor group established Dec 2005 Conceptual studies Heads of Agreement Main terms Transportation Financing phase III Phase II 2006 Concept Selection Pre Engineering PIO/EIA/permits Update business model incl. financing Final Agreements Phase III Project Sanction Oct 2009 Execution Investment Operational model Start up end 2012 April 2005 Phase I Ethane and dry gas to eastern Norway Dec Phase II.. extended to western Sweden Jan Phase III.. extended to Denmark

16 Overview Pipeline System Europipe2 Kårstø Landfall Landfall Rafnes Metering Ethane E1a Metering 26 Metering By-pass Separator incl. Receiving facilities Export Compressor Metering Sales gas local use E1b Sales gas export Metering Skanled scope Ineos scope Swedgas scope Energinet.dk scope PLEM 22 8 Lysekil Terminal E2 Pig receiver E Emergency Shut Down valve Exit point 12 Vallby Kile Terminal E3 E5 Jutland Terminal Varberg Terminal E4

17 Why Skanled? Secure feedstock - Danish Skanled production prepares soon for a of possible plateaudoubling of ethane supply to Noretyl: Diversification Improve electricity supply Environmental benefits Synergies between district heating and biogas Ut Grenland NGL fra tørrgass Tørrgass Inn Kårstø Tørrgass Ut andre steder Prosessanlegg for naturgass Kårstø Separasjonsanlegg Rafnes Landingspunkt Sverige og Danmark

18 Why Skanled? Secure feedstock Danish production soon of plateau - Diversification Denmark self-supplied with gas and supplier to Sweden - Production on rapid decline as from 2012 Improve electricity supply Environmental benefits Synergies between district heating and biogas

19 Why Skanled? Secure feedstock Danish production soon of plateau Diversification - Improve Poland electricity seeks diversification supply of gas supply Environmental benefits Synergies between district heating and biogas Polen

20 Why Skanled? Secure feedstock Danish production soon of plateau Diversification Environmental benefits Synergies between district heating and biogas - Norway: Reduced CO2 emissions of approx tons in the Grenland area given the current activity level Yara, Noretyl) - Sweden: Reduced CO2 emissions of approx tons (Preem) and conversion of approx tons of fuel oil (Perstorp) leading to a significant reduction of effluents of sulphur and heavy metals

21 Opportunities and Challenges Opportunities Supply of feed stock (Norway and Sweden) Backfill decline of production (Sweden and Denmark) Diversification (Sweden, Denmark and Poland) Competitive energy prices Challenges Gas sale/purchase Authority process permissions and legal framework Interface management misalignment of decision processes