The LNG storage business and associated costs. Enagás Gas Assets General Management

Transcription

1 The LNG storage business and associated costs Enagás Gas Assets General Management

2 Index About Enagás and its LNG capacities LNG storage & associated costs New LNG terminals Onshore vs Offshore 2

3 45 years experience A midstream company Leader in natural gas and LNG infrastructures Major International player as a result of our technological expertise, gas infrastructure construction skills, highly effective operations and maintenance programs and sound financial structure. European Union-accredited independent TSO Top natural gas transmission company in Spain Technical Manager of Spain's Gas System Ownership structure 5% 95% Free Float SEPI 3

4 A worldwide reference with more than 45 years experience The development of the Spanish gas system is based on LNG Sagunto LNG Terminal 2016 Barcelona LNG Terminal Huelva LNG Terminal 1989 Cartagena LNG Terminal 2003 Bilbao LNG Terminal Mugardos LNG Terminal PAST PRESENT 1996 I.P. Tarifa 1993 I.P. Larrau FUTURE 2006 I.P. Irún 2011 I.P. Almería LNG Terminal Underground Storage Pipeline Infrastructure of other operators 4

5 Enagás across the world Spain 6 LNG terminals (+2 in development) ~ km high pressure pipelines 3 underground storage facilities Mexico TLA Altamira LNG Terminal Soto La Marina Compressor Station Morelos Pipeline Sweden Swedegas Peru Transportadora de Gas del Perú (TgP) Compañía Operadora de Gas del Amazonas (Coga) South Peru Gas Pipeline Greece, Albania and Italy Trans Adriatic Pipeline (TAP) Chile GNL Quintero LNG Terminal 5

6 Enagás LNG capacities El Musel LNG Terminal Storage: 300,000 m 3 GNL Unloading: 267,000 m 3 GNL Reloading ratio: 6,000 m 3 / h TOTAL CAPACITY worldwide LNG storage 3,950,500 m³ (Includes 634,000 m³ in Mex/Chi) Regasification: 8,675,000 m³(n)/h (Includes 1,425,000 m³/h in Mex/Chi) Bilbao LNG Terminal (40%) Storage: 450,000 m 3 GNL Unloading: 267,000 m 3 GNL Reloading ratio: 3,000 m 3 / h 6 Barcelona LNG Terminal Storage: 760,000 m 3 GNL Unloading: 267,000 m 3 GNL Reloading ratio: 3,500 m 3 / h Sagunto LNG Terminal Storage: 600,000 m 3 GNL Unloading: 266,000 m 3 GNL Reloading ratio: 3,000 m 3 / h Cartagena LNG Terminal Storage: 587,000 m 3 GNL Unloading: 267,000 m 3 GNL Reloading ratio: 3,500 m 3 / h Huelva LNG Terminal Storage: 619,500 m 3 GNL Unloading: 173,400 m 3 GNL Reloading ratio: 3,690 m 3 / h 6

7 A worldwide reference with more than 45 years experience Capacity Flexibility Technology Development Spain: 4 LNG terminals 100% owned 2,266,500 m 3 LNG storage capacity 5,450,000 m 3 (n)/h regasification capacity 2 partially owned LNG terminals 1,050,000 m 3 LNG storage capacity 1,800,000 m 3 (n)/h regasification capacity TOTAL CAPACITY in Spain 3,316,500 m³ LNG storage capacity 7,250,000 m³(n)/h regasification capacity Since 1969, more than 10,000 downloadings 500,000 trucks loaded 260 Reloadings (gassing up & cooling down included) 1970: First truck loading operation 1997: First reloading operation 2012: First full Qmax download at Barcelona LNG Terminal 2014: 60% of the loading operations wordwide in Spain Renewable power generation: 8.7 MW in LNG Terminals 4.4 MW in Transmission network infrastructures Around 20%-30% of the total energy consumption Integration with industrial processes of partners Integration with a CCGT process at Cartagena LNG Terminal and cold recovery for industrial use at Barcelona LNG Terminal 7

8 LNG Trading Hubs 2015 LNG liquidity Third Party Access Free capacities LNG HUB LNG HUB TWh % PVB % Mugardos 11 3% BBG 60 14% 60 active operators and more than 100 registered LNG HUB LNG HUB LNG HUB LNG HUB Sagunto 63 14% Barcelona 99 23% Cartagena 9 2% Huelva 47 11% Total LNG % UGS 6 2% Total % 8

9 The flexible LNG terminal concept Traditional services Small scale Big scale 1 Trucking 3 Parking 1 Regasification 2 LNG Railroad 3 Small scaling 1 Re-export 9 4 Bunkering 2 Transhipment

10 Energy Efficiency Operational Excellence MIDstream facilities have the capability to be the best player for maximize the competitiveness of GN into the value chain UPstream MIDstream DOWNstream COST HIGH SMALL (+1-3% CAPEX) HUGE TIME MEDIUM SHORT (1 3 years) LONG 10 PLAYERS (impact) FEW (spot) A FEW MORE (over the whole downstream) THE WORLD! (but local)

11 Big Scale Logistics: Reloadings Re-exports loaded by reloading country in 2014 (6.4 Mt) 7% 18% 6% 4% 3% 1% 1% 60% Nº Vessels Spain, 67 Belgium, 23 France, 10 Netherlands, 9 Portugal, 7 South Korea, 3 USA, 1 Brazil, 2 Re-exports loaded by reloading country in 2015 (6.4 Mt) 6% 5% 4% 6% 18% 8% 28% 16% Nº Vessels 5% 4% Spain, 24 Belgium, 12 France, 6 Netherlands, 15 Portugal, 5 South Korea, 4 USA, 4 India, 4 Singapore, 3 United Kingdom, 3 Spanish Reloadings (GWh & Nº Vessels) Source: International Group of Liquefied Natural Gas Importers x1, x1, x0, x2, Source: Web Enagás Including reloading and coool-down operations

12 Small Scale LNG Logistic Model REGASIFICATION SATELLITE PLANTS LOCATION 1,067 Satellite Plants ~34,400 LNG trucks loaded per year ±12 LNG cargoes International leader in LNG truck loading Destinations: more than 59 across Europe (France, Italy, Portugal, Switzerland, Macedonia) Demand coverage: 1,400 GWh/year 12

13 Index About Enagás and its LNG capacities LNG storage & associated costs New LNG terminals Onshore vs Offshore 13

14 LNG Import Terminal Configurations: Technical Description Configuration* LNG Storage Jetty Onshore Facility Pipeline Regasification Onshore Regasification Terminal Full LNG containment tank 180,000 m³ Single berth Onshore regasification terminal Onshore pipeline Onshore FSRU FRSU 173,000 m³ Single ordual berth+ Breakwater not required Onshore regasification facility Subsea pipeline FSRU FSU + Offshore Regasification FSU ³ ەm 173,000 Single or dual berth + Breakwater not required Onshore regasification facility Subsea pipeline Offshore (Jetty based) FSU + Onshore Regasification FSU 173,000 m³ Single or dual berth + Breakwater not required Onshore regasification terminal Cryogenic piping over the trestle Onshore * Site selection depends on navigational safety, port infrastructure and marine operations. 14

15 LNG Import Terminal Configurations: Pros & Cons CONFIGURATION PROS CONS OTHERS RECOMMENDATION Onshore Regasification Terminal Expandable flexibility Higher levels of availability (99,5%) Well proven tenchnology Excellent safety record Qualified local labor force Insulation efficiency (0,05%) Lower costs for long term solutions (lower OPEX) Land and port facilities required Social acceptance Requires longterm investment More adequate to handle with long term natural gas supply growth More recommended for LONG TERM PROJECTS FSRU and FSU + Off/On shore regasification Less visual impact Leasing alternative Land not required Able to be located close to final consumption points if port infrastructure is available Lower costs for short/medium term solutions (lower CAPEX) Allow rapid fuel switching Not easily expandable Less proven technology Less space between relevant equipments Face meteorological conditions Crew management Higher O&M costs Periodical inspection (4 years) Insulation efficiency (0,15%) Limitations in storage and send out capacity Fast-track solution Port availability required Temporaly solution until the onshore regasification terminal is built More recommended for SHORT TERM PROJECTS except in case of exceptional conditions (SoS or environmental conditions) 15

16 Cost comparison of the alternatives Total Cost (USD M.) Cost comparison On shore Terminal vs FSRUs alternatives on shore terminal FSRU (construction) FSRU (leasing) Break even point: 8-10 years years Source: IGU. Between 0 and 8/10 years most profitable option FSRU leasing From 10 years most profitable option On shore terminal FSRU construction is not in any case the most favorable option 16

17 Index About Enagás and its LNG capacities LNG storage & associated costs New LNG terminals Onshore vs Offshore 17

18 Storage & associated costs TARIFFS Unloading LNG Storage Reloading Small scale relaoding 16,988 per Ship 35 /GWh 32,4 /GWh/d 176,841 per Ship 1,563 /GWh 87,978 per Ship 521 /GWh Port Costs Imbalances Losses 18

19 Imbalances Summary UNBUNDLING OF SERVICES UNDER RD984 EXCESS LNG DEFICIT LNG Based on total contracted Regasification Capacity (LNG Truck loading + Regasification capacity) Maximum LNG stock allowed: If (15 x total contracted regasification capacity) < 300 GWh 300 GWh If (15 x total contracted regasification capacity) > 300 GWh 30-day moving average LNG stocks in all terminals = (15 x contracted regasification capacity) If LNG stock in excess (4 x total daily contracted capacity) Daily invoice of (2.5 x LNG Storage tariff) If LNG stock in excess > (4 x total daily contracted capacity) Daily invoice of (10 x LNG Storage tariff) Minimum LNG stock allowed: 0 kwh Daily invoice of (Quantity less than zero x 10% Gas Reference Price) LNG Storage Tariff: 32,4 /GWh/day (0,01234 $/MMBtu/day) as per regulation Orden IET/2446/2013. The Gas Reference Price is calculated as an arithmetic mean of the gas price in the Henry Hub and the National Balancing Point, using the methodology established in article of the NGTS. 19

20 Losses UNLOADING 0.005% of the unloaded LNG FUEL GAS Covered by Terminal Operator: Efficiengy RELOADING No reloading losses under normal operation conditions 20

21 Conclusion Enagás understands its role as logistics solution provider and aims to improve LNG competitiveness. LNG storage costs are currently settled for the traditional service of regasification. To develop bunkering and storage Propuesta businesses, market needs: PLAN de MEJORA 2016 Unbundling of storage services. Modifying storage imbalances for capacities dedicated to storage. New LNG FSU storage could be needed in some cases to further develop bunkering services. 21

22 Thanks for your attention

23 LNG terminals in the Mediterranean Sea See one more LNG terminal in the Mediterranean Sea on next slide Barcelona DOCKS: 1 LS 1 SS: 2,000 / 266,000 m 3 LNG STORAGE: 760,000 m 3 LNG / 6 Tanks REGASIFICATION: 1,950,000 m 3 (n)/h (544.3 GWh/d) LNG TRUCK LOADING: 3 bays, 50 trucks/day LNG METHANE TANKER LOADING: Max. 3,500 m 3 /h TRANSSHIPMENT: Available Cartagena DOCKS: 1 LS 1 SS: 7,500 / 266,000 m 3 LNG STORAGE: 587,000 m 3 LNG / 5 Tanks REGASIFICATION: 1,350,000 m 3 (n)/h (376.8 GWh/d) LNG TRUCK LOADING: 3 bays, 50 trucks/day LNG METHANE TANKER LOADING: Max. 3,500 m 3 /h TRANSSHIPMENT: Available

24 LNG terminals in the Mediterranean Sea See two more LNG terminals in the Mediterranean Sea on previous slide Sagunto DOCKS: 1 LS: 30,000 / 266,000 m 3 LNG STORAGE: 600,000 m 3 LNG / 4 Tanks REGASIFICATION: 1,000,000 m 3 (n)/h LNG TRUCK LOADING: 2 bays, 40 trucks/day LNG METHANE TANKER LOADING: Max. 3,000 m 3 /h TRANSSHIPMENT: Available

25 LNG Terminals in the Cantabrian Sea El Musel DOCKS: 1 LS: 65,000 / 266,000 m 3 LNG STORAGE: 300,000 m 3 LNG / 2 Tanks REGASIFICATION: 800,000 m 3 (n)/h (223 GWh/d) LNG TRUCK LOADING: 2 bays, 50 trucks/day LNG METHANE TANKER LOADING: Max. 6,000 m 3 /h TRANSSHIPMENT: Available Bilbao DOCKS: 1 LS: 7,500 / 270,000 m 3 LNG STORAGE: 450,000 m 3 LNG / 3 Tanks REGASIFICATION: 800,000 m 3 (n)/h (223 GWh/d) LNG TRUCK LOADING: 1 bay, 15 trucks/day LNG METHANE TANKER LOADING: Max. 3,000 m 3 /h TRANSSHIPMENT: Available

26 LNG Terminals in the Atlantic Sea Huelva DOCKS: 1 LS: 7,500 / 175,000 m 3 LNG STORAGE: 619,500 m 3 LNG / 5 Tanks REGASIFICATION: 1,350,000 m 3 (n)/h (376.8 GWh/d) LNG TRUCK LOADING: 3 bays, 50 trucks/day LNG METHANE TANKER LOADING: Max. 3,700 m 3 /h TRANSSHIPMENT: Available