the changing role of lng winds of change in shipping conference langley meek february 19 2014 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
The Changing Role of LNG Winds of Change in Shipping Conference Langley Meek February 19, 2014 PowerPoint Presentation
Download Presentation
The Changing Role of LNG Winds of Change in Shipping Conference Langley Meek February 19, 2014

Loading in 2 Seconds...

play fullscreen
1 / 15

The Changing Role of LNG Winds of Change in Shipping Conference Langley Meek February 19, 2014 - PowerPoint PPT Presentation


  • 137 Views
  • Uploaded on

The Changing Role of LNG Winds of Change in Shipping Conference Langley Meek February 19, 2014. GDF SUEZ Gas NA LLC. Disclaimer. Tug Roundtable. GDF SUEZ A World Leader in LNG. About GDF SUEZ Founded in 1822; predecessor company constructed the Suez Canal in 1858

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'The Changing Role of LNG Winds of Change in Shipping Conference Langley Meek February 19, 2014' - ailani


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
the changing role of lng winds of change in shipping conference langley meek february 19 2014

The Changing Role of LNGWinds of Change in Shipping ConferenceLangley MeekFebruary 19, 2014

GDF SUEZ GasNA LLC

disclaimer
Disclaimer

Tug Roundtable

gdf suez a world leader in lng
GDF SUEZA World Leader in LNG
  • About GDF SUEZ
  • Founded in 1822; predecessor company constructed the Suez Canal in 1858
  • No. 1 independent power producer (IPP) in the world
  • 219,300 employees in nearly 70 countries
  • Global LNG Activities
  • 3rd Largest LNG Portfolio in the World
  • 18 LNG carriers in operation including 16 tankers and 2 shuttle regasification vessels
  • A supply portfolio of 16.5 million metric tons per year from 6 countries
  • Largest supplier in the Atlantic Basin
  • In North America
  • Everett, MA facility has delivered over 3 TCF of LNG since 1971
  • Selling LNG for transportation applications since 2011
  • Ongoing development projects for bunkering and LNG infrastructure at ports
why are we talking about lng
Why are we talking about LNG?
  • Natural gas is an abundant, domestically produced fuel
    • We have significant reserves of natural gas due to our ability to extract from shale; US will be a net exporter
  • LNG is a cleaner fuel
    • Lower SOx, NOx, CO2 and particulate emissions
    • Meets current and future emissions requirements both in Emissions in in ECAs and for global trade
  • But really: The desire to use LNG as fuel is driven by PRICE
    • The spread between oil and natural gas has widened. North American natural gas prices are forecasted to be significantly cheaper than global oil and domestic diesel prices.
    • US produced LNG prices are forecasted to be much less expensive compared to Ultra Low Sulfur Diesel. High demand for ULSD and constrained refining capacity puts upward pressure on its cost.
u s imports of lng changing market
U.S. Imports of LNG – Changing Market
  • With large shale gas production and increased global demand, U.S. imports of LNG have declined significantly
    • Except for New England, LNG imports into the U.S. have stopped
  • The U.S. LNG fuels market must compete with global demand to entice imports
the export situation
The Export Situation
  • Enormous liquefaction capacity is coming online, but it is dedicated to global exports, not the domestic market
    • Export projects financed and built on the basis of 20 year commitments
    • Very low probability that these plants will make LNG available outside of long term contracts and significant volume commitments
    • They are not optimized to allow for bunkering or loading small vessels with LNG
  • Hierarchy of flows pulls LNG away from the domestic fuels market
planned liquefaction for the domestic lng fuels market
Planned Liquefaction for the Domestic LNG Fuels Market
  • Domestic liquefaction plants can be better suited to serve the emerging fuels market because they don’t have to compete with global prices which can often draw LNG away from the U.S.
  • There is significant interest in providing a domestic solution
    • 250 BCF/year planned by various parties
  • Existing plants are being expanded to satisfy the growing needs of the transportation market
    • Applied (AZ), Clean Energy (CA) are adding capacity to serve growing trucking demand
  • New plants are being built to serve new LNG fuels markets
    • Shell’s Sarnia and Geismer plants are purpose-built for the marine market growing on the Great Lakes and Gulf Coast
    • Stabilis’ plants are serving the E&P business growing along shale plays
existing liquefaction
Existing Liquefaction
  • 3 Main Categories
    • Utility Peak-shavers that are dedicated to serving utility customers
      • They do not have the ability to do anything with their LNG other than serve their commitments
    • Utility Peak-shavers that have some excess capacity that they can sell on an interruptible basis
      • Not reliable supply because their first priority is to serve their utility customer’s needs – not other contracts
    • Purpose-built LNG facilities for new markets
      • Represent reliable supply when they have excess capacity

LNG Peak shaving plants store natural gas (and many also liquefy gas) that can be used when gas demand is high (peak). When this occurs, LNG can be vaporized and sent to a gas grid.

existing liquefaction plants
Existing Liquefaction Plants

NW Natural Portland

NW Natural

Newport

GDF SUEZ Everett Import Terminal

Merit Energy

Centerpoint Burnsville

MidAmerican Garner

Exxon Shute Creek

UGI Temple

Transco Carlsdat

MUD Omaha

Philly Gas Works

Kinetrix Indianapolis

Linde Livermore

Pioneer Ulysses

Clean Energy Boron

AGL Chattanooga

Applied Topak

AGL Cherokee

AGL Trussville

Spectrum Ehrenberg

Prometheus Bowerman

AGL Macon

AGL Riverdale

Clean Energy Pickens

* Not representative of the entire market

planned liquefaction plants
Planned Liquefaction Plants

Eagle LNG WA

Eagle LNG ND

Stabilis Bakken

Shell Sarnia

Noble Energy Keota

Eagle LNG OH

Eagle LNG CO

CLNE Boron II (Expansion)

Spectrum Ehrenberg

Stabilis OK

Applied Topak II

(Expansion)

Applied Midlothian

  • Announcements by:
  • Eagle (Clean Energy)
  • - Sempra and JEA
  • - Pivotal and WesPac

Waller Marine Port Allen

Stabilis W. TX

Stabilis Haynesville

Shell Geismer

Floridian

HEYCO Lavaca

Stabilis Eagleford

* Does not represent all announcements made this year

ulsd lng price build up
ULSD & LNG Price Build Up

$2.95/DGE

$1.61/DGE

Source: U.S. EIA, New York Harbor ULSD, November 2013 average

Source: U.S. EIA; TETCO M3 November 2013 average gas price; GDF SUEZ estimates of liquefaction and distribution costs

forecasted usld lng prices
Forecasted USLD & LNG Prices

Source: U.S. EIA2014 Forecast; GDF SUEZ estimates of liquefaction and distribution costs

market activity by location
Market Activity by Location
  • Modest movement towards LNG for Jones Act, ECA-bound players

TOTE Containerships

Washington State Ferries

Interlake Steamship Lakers

Staten Island Ferry

Matson Containerships

Horizon Containerships

TOTE Containerships

Crowley ConRos

Harvey Gulf OSVs

American Petroleum Tankers

Crowley Tankers

Seacor Tankers

market activity for bunkering
Market Activity for Bunkering
  • Limited opportunity to construct bunkering vessels because demand currently is small and cost to construct extremely high
  • Various ports considering how they will serve the growing demand for LNG
  • Private companies starting to make infrastructure investments
    • Harvey Gulf in Port Fouchon, LA

Used with Permission