How US LNG Export Projects Will Serve Chinese Demand Delfin LNG

Transcription

1 How US LNG Export Projects Will Serve Chinese Demand Delfin LNG

2 Table of Contents PAGE 2 China s LNG Demand PAGE 5 Delfin LNG Team Overview PAGE 8 What is Delfin LNG? PAGE 14 What is an FLNGV? PAGE 18 Conclusion 1

3 CHINA S LNG DEMAND 2

4 Incremental LNG Demand To Come From Second Tier Players Why Chinese Demand Will Increase Over The Next 10 Years? Continued Urbanization/Growth in electricity demand Clean source of energy Very low % of current energy mix Security of supply Who Are Second Tier Players? Do not have existing terminals yet Do not have existing LNG supply contracts yet Do not have gas reserves Are planning import terminals Are expanding their domestic network Are growing companies with strong track records, established businesses, and the will to break into the natural gas business Why Will Second Tier Players Succeed? Government seems to be making structural changes that will create room for private entrepreneurs New market participants are not burdened with legacy contracts 3

5 Incremental LNG Demand To Come From New Markets Delfin LNG, a US-based floating liquefaction project, is well-positioned to meet the demand requirements of incremental LNG buyers. WhileestablishedbuyersinAsiaandEuropewillcontinuetomakeupalargepercentageofoverallLNG demand, a key source of incremental demand will be non-oecd and emerging market nations According to the International Energy Agency (IEA), 82% of incremental gas demand is expected to come from non-oecd countries (1) FLNGVs offer the flexibility necessary to meet the dynamic requirements of these emerging buyers (1) According to the IEA s report entitled World Energy Outlook

6 DELFIN LNG TEAM OVERVIEW 5

7 Strong Management Team Frederick Jones Chief Executive Officer Mr. Jones was a founder-shareholder of Marc Rich & Co. AG, now Glencore plc. He is also a former Advisor to the President of OPEC. Mr. Jones was one of the early investors in US shale gas. Together with his partners he developed assets in the Barnett shale starting in the mid-1990s. Throughout his 40 years of experience in the energy industry Mr. Jones has developed projects and businesses in LPG marketing, coal bed methane extraction, hydroelectric power, and natural gas. He has led numerous ventures with various public and private entities in throughout the world. Mr. Jones has been involved in real estate and oil and gas investment in Texas for over 30 years. This experience was a driving factor in the conception of Delfin LNG and is now critical in its implementation. Mr. Jones is based in Singapore and Dubai. 6

8 Strong Management Team (cont d) Daniel Werner Chief Operating Officer Mr. Werner has more than 25 years of experience in the oil and gas industry. He specializes in LNG procurement, gas marketing and the engineering, construction and operation of production and midstream facilities. Mr. Werner has held various senior management roles in the United States, Egypt, Singapore, West Africa and Mexico. Prior to joining Delfin LNG Mr. Werner was the Senior Vice President of Commercial at Golar LNG. At Golar he had various responsibilities including LNG procurement and marketing, capacity and logistics management, and project development. Prior to working at Golar, Mr. Werner held senior roles at BG Group, Sempra LNG and El Paso Energy. Earlier in his career he was a staff member of the Gas Research Institute and the Industrial Research Laboratory of Northwestern University. Mr. Werner holds an MBA in Finance and Marketing, an undergraduate engineering degree, and multiple construction technology patents. 7

9 WHAT IS DELFIN LNG? 8

10 First US-Based Floating Liquefaction Facility Delfin LNG is poised to have the first floating liquefied natural gas vessel ( FLNGV ) in the United States. Location: 50 miles off the coast of Cameron Parish, Louisiana in the Gulf of Mexico Capacity: 13 mtpa of total liquefaction capacity in-place, with the potential to expand the project to 21 mtpa of total liquefaction capacity Brownfield Project: Development risk significantly mitigated through use of existing infrastructure Permitting Process: Streamlined process already underway and expected to be completed in 2016 Gas Supply: Onshore interconnections provide access to pipeline-quality US gas Project Components: Three main components of Delfin LNG: 1. Onshore Compressor Station: designed by leading engineering and construction management company 2. UTOS Pipeline: existing 30-mile, 42 -diameter pipeline with total throughput capacity of 2.02 Bcf/d; access to 3 major US interstate pipelines and 4 existing US natural gas processing plants 3. Multiple FLNGVs and Moorings: each FLNGV will provide part of the project s total liquefaction capacity and will be connected to a detachable mooring 9

11 Project Map Delfin LNG Deepwater Port is located 50 miles off the coast of Louisiana in the Gulf of Mexico. 10

12 Project Components 1. Compressor Station 2. UTOS Pipeline FLNGV #1 FLNGV #2 3. Multiple FLNGVs FLNGV #3 FLNGV #4 11

13 Rendering of Delfin LNG Deepwater Port 12

14 Onshore Interconnections Delfin LNG has access to existing US infrastructure through its onshore interconnections, which are located approximately 100 miles west of the Henry Hub distribution hub. 13

15 WHAT IS AN FLNGV? 14

16 Advantages of Floating Liquefaction Use of FLNGVs provides significant advantages over onshore projects for gas buyers. FLNGV Onshore LNG Facility Faster to Build: Smaller and simpler than onshore facilities can be built 1-2 years faster Movability: Can detach and relocate if: i) a hurricane is approaching, or ii) gas markets change Favorable Permitting: i) Smaller environmental footprint means less permitting and NIMBY issues, ii) FLNGVs go through US Maritime Administration s ( MARAD s ) well-defined one-year process instead of FERC s multi-year process Contract Flexibility: Onshore projects require 20-year contracts to cover their significant capital costs, while FLNGV projects have the flexibility to offer year contracts as well FLNGVs vs. FSRUs: The advent of FLNGVs is reminiscent of the growth in FSRUs Endorsed by Market Participants: Major shipbuilders, engineers, gas buyers and others endorse FLNGVs 15

17 Mooring System Delfin LNG s mooring system will provide a solid anchor for each FLNGV but will also allow for movability in the event of hurricane or a significant change in global gas markets. 16

18 Mooring System (cont d) 17

19 CONCLUSION 18

20 Conclusion Delfin LNG is well-positioned for success. Low Cost: The US is the lowest-cost LNG producer in the world, and Delfin LNG is among the lowest-cost liquefaction service providers in the US Scalable: 13 mtpa of total liquefaction capacity in-place, with the potential to expand the project to 21 mtpa of total liquefaction capacity Environmentally Friendly: Offshore facilities are less disruptive to surrounding environments and populations; Delfin LNG is using advanced air cooling technology that will dramatically reduce the need for large volumes of cooling water and will protect marine life in the project s vicinity Well-Located: Delfin LNG has access to existing US infrastructure and gas supply through its onshore interconnections Brownfield Project: Delfin LNG Deepwater Port to be supplied by an existing pipeline that is wholly-owned by Delfin LNG; significantly reduces project development risk Flexible Commercial Structures: Delfin LNG offers flexibility in gas delivery, gas pricing and contract duration 19

21 Delfin LNG offers a simple, flexible, timely and reliable solution for China s LNG supply needs. Thank you for your time and please contact us if you would like to discuss further: Delfin LNG LLC 5949 Sherry Lane, Suite 950 Dallas, TX M.Weil@FairwoodLNG.com