project presentation · project overview 2 •objective: develop a liquefied natural gas (lng)...

Project presentation

May 2015

Propriété de GNL Québec Inc. Tous droits réservés

Project overview

2

• Objective: Develop a liquefied natural gas (LNG) export terminal at the Port of Saguenay, Quebec• CAD$7.5 billion facility• 11 mtpa capacity• 1.56 bcf/d of feedgas (~44 mcm/d)• 650-km new build pipeline

• Differentiators: • Low plant CAPEX & OPEX• Powered by low-cost hydroelectricity• Access to low cost gas in Canada, and pipeline transportation

capacity• Predictable regulatory regime• Government support in Quebec and Ottawa

• Sponsors: Freestone International LLC & Breyer Capital LLC

mtpa: million tons per annumbcf/d: billion cubic feet per daymcm/d: million cubic meters per day


First LNG cargo in 2021

3

2014 2015 2016 2017

Project developmentEnv. PermittingPre-FEED/FEEDLNG MarketingGas SupplyPipelinePower LinesFinancing

2018 2019

Construction

Participatory process with communities, First Nations and stakeholders

2020 2021

FID


Growing natural gaz demand fueled by power

generation needs in emerging countries

4


LNG demand will increase significantly over

the next decades

5

0

50

100

150

200

250

300

350

400

450

2005 2010 2015 2020 2025 2030

MM

t/y

Americas

Europe

Niche Markets

(Asia & ME)

China & India

JKT

• Natural gas is an environmentally-preferred source of energy

• LNG demand doubling over the next 20 years, largely driven by Asia-Pacific

• LNG buyers seek:• Competitive pricing• Diversification of supply• Project risk profile • Project credibility & certainty

of outcome• Potentially, vertical project

integration


Resilience of LNG prices to oil prices drops,

and promising long term price differential

6

• Long term Asia proxy in $14-$15/mmBtu range• Long term HH price around $5/mmBtu


Strong fondamental trends are supporting

natural gaz demand

7

Low cost LNG plants shutting down…

• Egypt (12+ mtpa of lost LNG production)

• Indonesia (40% decr. in LNG export since 99 / Arun LNG to be closed)

• UAE

50 mtpa of LNG shortfall by 2025 (Credit Suisse, 2014)

…high-cost LNG supply coming online

• Australia (CAPEX over $1,500/t)• Russia (CAPEX over $1,500/t)• British Columbia (CAPEX over $1,300/t)

SUSTAINED TREND TO GROWING NATURAL GAS NEEDS

Emerging countries’ needs

Energy policies

Existing importers growing needs

• China (+13% in 2013)• Brazil (+18% in 2013)• Indonesia (+9% in 2013)

• CO2 emission reduction in China announced in Nov 2014

• Nuclear power decommissioning in Germany and shutdowns in Japan

• Japan (89 million tons in 2014, +1.2%)• Brazil (+28% LNG import in 2014 due

to the drought)

Low cost LNG supply disappearing

SIGNIFICANT CHANGESIN LNG LANDSCAPE


Energie Saguenay can rely on robust, competitive

canadian gas supply at AECO and Dawn

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1,444 Tcf

United States

Canada

Robust Supply• Tremendous natural gas

resource in Canada• Highly integrated pipeline

network with available capacity

Énergie Saguenay

AECO-C

MARCELLUS& UTICA

HENRY HUB (HH)

Dawn

Competitive Pricing• AECO-C trades at

an average discount of 11% less than HH

Gas ReservesSOURCE: EIA / NEB (2013)


Resulting from new NA gas market dynamics, it is

planned to have excess in the entire network in 2020

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• Significant available pipeline capacity from Western Canada to eastern Ontario • Significant Canadian Supply from new sources (e.g.

Montney, Duvernay)•Marcellus continues to offer more supply to Northeast US

and Quebec/Ontario, pushing WCSB gas back to Alberta• Low cost Utica production expected to be 5 bcf/d by 2020• Pipeline infra to be extended in NE US (Constitution,

Iroquois)

Historical TCPL Mainline Usage:2003: 6.5 bcf/d2014: 1.9 bcf/d2020: 1.2 bcf/d (projected)


Energie Saguenay will require a new-build

pipeline following existing right-of-way

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TCPL Mainline

• New build: 36/42-inch pipeline from Waddington to Saguenay (650 km)

• Additional infrastructure requirements in Eastern Triangle

• Significant pipeline capacity from Alberta to Ontario

• Significant excess capacity at Dawn in Ontario

EASTERN TRIANGLE

Dawn Hub


Unique site location enables reduced,

competitive CAPEX/OPEX

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• Unique suitable site in Quebec for LNG export

• Sheltered, year-round deepwater port

• Excellent existing infrastructure

• Available industrial land remote to population

• Superior plant efficiency due to low ambient temperatures

• Access to low-cost hydropower

• Available skilled labor

• Saguenay region historically supportive of industrial development


Energie Saguenay can rely on valuable existing

infrastructure and local skilled labor

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Major Highway to Quebec City (4-lane dual carriage way)

735 kV substation (40 km from site)

Bagotville Airport(18 km from site)

Grande Anse Marine Terminal (at site)

Intermodal Rail Yard (at site)

Gas Pipeline right-of-way

(10 km from site)

6 km

15 km

• 250,000+ people (surrounding region)• Significant skilled labor (from local mining & forestry

industry/projects)• Available housing & amenities (no camps)


Project fondamentals result in competitive

economics to Asia and Europe

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Competitive LNG delivered price to Asia & Atlantic Basin

Lower infrastructure and set-up costs(roads, logistics, temp power generation, no camp, etc)

Lower permanent plant costs(jetty, lower equipment count, etc.)

Low-cost, renewable hydro-power(reduces CAPEX and OPEX)

Favorable low Saguenay ambient temperature(leads to higher plant efficiency and lower $/mtpa costs)

Significantly lower OPEX

Propriété de GNL Québec Inc. Tous droits réservés 14

Highly differentiated: low-cost, low-complexity

Low cost hydropower surplus

Low cost, low risk

Process efficiency gain

Low GHG Emissions

Province used to LNG2 import terminals permitted1 peak-shaving liquefaction plant

10-15%

Propriété de GNL Québec Inc. Tous droits réservés 15

Strategically positioned to supply global markets

Énergie Saguenay

COMPETITIVE TO ASIA, EUROPE, MIDDLE EAST & SOUTH AMERICA

Worldwide LNG Receiving Terminals

Source: BG

• 700 mtpa of global LNG import capacity

• Growth from 58 terminals in 2008 to 94 terminals in 2013


NEB Export Application:

http://bit.ly/1KqRLpb

http://bit.ly/1KqRLpb

Contact us

Phone : 418 412-4993

email : [email protected]

Web site: www.energiesaguenay.com

project presentation · project overview 2 •objective: develop a liquefied natural gas (lng)...

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