Methanizing the Mediterranean Area.

Transcription

1 Methanizing the Mediterranean Area. TRIESTE & ROME 10-11/06/2015 FROM NORTH AND BALTIC SEA TO THE MEDITERRANEAN THE DEVELOPMENT OF A LNG CHAIN Tord johnsson Area, Business development manager, Europe & Africa Oil & Gas Business WÄRTSILÄ POWER PLANTS

2 Introduction Wärtsilä Corporation Solutions for 19,000 professionals Power Generation Marine / Offshore Net sales by business 2014 Services 40% Listed in Helsinki 4.8 billion turnover Solid financial standing Ship Power 36% Power Plants 24% LEADER IN Efficiency Flexibility Environmental solutions 4 Wärtsilä 10 June 2015 Tord Johnsson

3 Market Drivers EU is driving the development of LNG infrastucture out of two reasons o o Enviromental and the EU clean fuel strategy mainly related to the transport sector both at sea and at land with stricter emission legislation. First SECA area that went into force 1 January 2015 was the Baltic Sea and for part of North Sea with Mediterranean and remaining part of North Sea to follow in 2020 with the aim to have LNG bunkering facitilties in 139 ports. Blue Corridor with LNG truck filling stations each 400 km and CNG car filling stations each 150 km. Security of Supply, with the largely dependance on Russia for EU s natural gas imports, EU wants to diversify its natural gas imports by both promote new pipeline like TAP and TANAP as well as increase the number of LNG receiving terminals. The recent decision for cancellation of the Russia s South Stream pipeline project has reiterated calls for the rapid and structured development of an energy union within EU, which will have an impact on the LNG imports and purchasing developments. Azerbaijan and Turkey are important countries in the Southern Corridor and as partners to EU in this aspect. Cost, energy efficiency Renewable, infrastructure commonality LEGEND SECA Sulfur Emission Controlled Area TAP Trans Adriatic Pipeline TANAP Trans Anatolian Natural Gas Pipeline 5 Wärtsilä 10 June 2015 Tord Johnsson

4 LNG cleanest shipping fuel available -25% Emission values [%] CO 2-85% -99% NO x SO x -95% Particulates Dual-Fuel engine in gas mode Diesel engine 0 6 Wärtsilä 10 June 2015 Tord Johnsson

5 Choice of Fuel / Technology Existing /Future Regulation Low Sulfur MGO Scrubber technology Alternative fuels to LNG Source; Terntank Rederi A/S 7 Wärtsilä 10 June 2015 Tord Johnsson

6 Wärtsilä Dual-Fuel References MERCHANT OFFSHORE SPECIALS DF CONVERSION 2 STROKE DF DF POWER PLANTS 732 ENGINES 132 ENGINES 61 ENGINES 28 ENGINES 11 ENGINES 352 ENGINES 168 LNG carriers 24 Offshore supply 9 Ferries 4 FPSO vessels 4 Chemical tankers 75 plants 8 Multigas carriers 5 FPSO vessels 6 Tugs 2 RORO vessels 4 Container vessels Output 4877 MW 2 Product tankers 4 FSRU vessels 3 ROPAX vessels 1 Chemical tanker 3 LNG carriers Online since Bulk tanker 2 Platforms 1 Navy vessel 1 Ferry 1 CNG carrier 1 FSO vessel 1 Icebreaker 1 IWW vessel 1 IWW vessel 1 Guide ship >1,300 engines >12 million running hours 8 Wärtsilä 10 June 2015 Tord Johnsson

7 LNG as future volume in shipping DMA study LNG demand million ton in DNV high scenario LNG fuelled ships globally by Availability and price will determine the market in Wärtsilä 10 June 2015 Tord Johnsson

8 Views from part of the LNG Value Chain Source; SkanGas 11 Wärtsilä 10 June 2015 Tord Johnsson

9 Economical and funding aspects for Ship owner Energy efficiency Propulsion Ship design EU-support for new technologies/fuels Motorways of Seas /TEN-T etc Nox fond support for reduction of Nox Reduction of Fairways Dues Early movers rebate at Ports 16 Wärtsilä 10 June 2015 Tord Johnsson

10 LNG volume & share of total gas is growing Growth of LNG LNG supply Bcf/d 80 Shares of global gas consumption Bcf/d 40% 60 30% 40 20% 20 10% % Other Africa Australia US Russia Qatar Total trade Pipeline LNG BP Energy outlook Wärtsilä 10 June 2015 Tord Johnsson

11 Focus on markets and solutions where we can deliver best value for customers HFO & DF UTILITY GAS LNG SPECIAL APPLICATIONS Maintain leading position in HFO & dual-fuel power plant markets Grow strongly in large utility gas power plant markets Small and medium scale LNG terminal EPC Grow in: Nuclear emergency power CHP Oil & Gas Biofuels 12 Wärtsilä 10 June 2015 Tord Johnsson

12 LNG infrastructure and synergies within Wärtsilä Small to medium scale LNG terminal market expected to grow Increasing demand for decentralised power plants, energy intensive industries in remote areas & local gas grids LNG has huge potential as fuel for ships Regional gas availability enables Decentralised Smart Power Generation Flexible gas power plants on islands supporting renewable energy Gas and dual-fuel ships Need for new small size LNG carriers Building the infrastructure is key 13 Wärtsilä 10 June 2015 Tord Johnsson

13 LNG Receiving Terminals + potential additional terminal off-takers LNG Carrier m3 LNG Import Terminal m3 Power Plant/Industry MW The development project must be feasible based on key elements (example) National grid gas pipeline Additional off-takers might be a bonus in specific projects but shall not be a must for the feasibility of a terminal (= long project development time) Trans Shipments m3 LNG SatelliteTerminal Power Plant MW Port Additional off-takers will increase the terminal LNG volume ( lower EUR/MWh price of LNG) but will also allocate increased cost of both CAPEX and OPEX for the overall project. Ship Bunkering Fuel m3 Industry LNG Tank Trucks m3 LNG SatelliteTerminal Power Plant MW 14 Wärtsilä 10 June 2015 Tord Johnsson

14 Supply Chain making LNG available for offtakers - what is the price of LNG? STS transfer LNG production Main distribution Storage Power Generation LNG import Source; SkanGas & Wärtsilä Local distribution 15 Wärtsilä 10 June 2015 Tord Johnsson

15 LNG Value Chain /MWh 70,00 60,00 Value Chain LNG as bunker fuel Average Case Example 60,42 50,00 40,00 35,73 3,13 4,23 4,88 12,45 30,00 20,00 10,00 0,00 TTF 26/MWh Commodity Terminal X re-loading incl BOG surcharge Shipping Terminal X to Terminal Y using small LNGC (7.500 m3) Terminal Y handling, including re-loading in bunkerbarge (avg) 100 % MGO (avg) - room for bunkerparties and shipowners to invest 16 Wärtsilä 10 June 2015 Tord Johnsson

16 LNG Infrastructure In the Nordics and Baltics there are already several terminals and production facilities. Different sizes of terminals are under construction and being planned in the region. EU and national funding. The infrastructure is being developed 17 Wärtsilä 10 June 2015 Tord Johnsson

17 Manga, Tornio, Finland A Significant Environmental Milestone MANGA, TORNIO, FINLAND The Tornio Manga LNG terminal is a long-term infrastructure investment programme. The beneficiaries include shipping and road transportation companies, power and heat utilities, as well as other industrial and mining companies in northern Europe. We appreciate Wärtsilä s participation as a valuable partner in this project with special value-adding capabilities in this field. Pekka Erkkilä, Chairman of the Board, Manga LNG OY (Jan 2014) 18 Wärtsilä 10 June 2015 Tord Johnsson

18 Manga, Tornio, Finland - Project site 19 Wärtsilä 10 June 2015 Tord Johnsson

19 Manga, Tornio, Finland - Main data Client: Manga LNG Oy Region / Country: Tornio, Finland Scope: EPC Estimated start up: Early 2018 Tank net volume: m 3 Ship unloading rate: 3 000m 3 /h Outlet gas pressure: 6.0 barg LNG in-tank pumps: 3 x 175m 3 /h End user: Outokumpu Tornio steel mill, mines, factories and other industrial customers in Northern Finland and Sweden 20 Wärtsilä 10 June 2015 Tord Johnsson

20 Wärtsilä provides technology and services throughout the entire LNG distribution chain 21 Wärtsilä 10 June 2015 Tord Johnsson

21 Power Plant, 5x20V34 with Integrated LNG Storage 22 Wärtsilä 10 June 2015 Tord Johnsson

22 Summary & Conclusion Wärtsilä LNG Business have just started and is here to stay LNG will be the energy of the 21st century Wärtsilä is an EPC provider of LNG liquefaction plants in our market Small & Medium scale ( TPA ) liquefaction plants for domestic use and export. Wärtsilä is an EPC provider of LNG import terminal plants with or without power plants and our market is Small & Medium scale ( m3 storage) import terminals plants for domestic and regional use and import/export. Wärtsilä will form a important part of the LNG value chain LNG IS THEFUTURE Already ENERGY today! 23 Wärtsilä 10 June 2015 Tord Johnsson