the lng storage business and associated · pdf filethe flexible lng terminal concept...

The LNG storage business and associated costsEnagás Gas Assets General Management

About Enagásand its LNG capacities

New LNG terminalsOnshore vs Offshore

LNG storage &associated costs

Index

2

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.

A midstreamcompany

SEPIFree Float

95%

5%

Ownership structure

3

45 years’ experience

Technical Manager of Spain's Gas System

European Union-accredited independent TSO

Top natural gas transmission companyin Spain

PRESENT

1969 20161988Huelva LNG Terminal

1989Cartagena LNG Terminal

1993I.P. Larrau

1996I.P. Tarifa

2003Bilbao LNG Terminal

2006Sagunto LNG Terminal

2007Mugardos LNG Terminal

2011I.P. Almería

Barcelona LNG Terminal

The development of the Spanish gas system is based on LNG.

2006I.P. Irún

4

LNG Terminal

Underground Storage

Infrastructure of other operators

Pipeline

A worldwide reference with more than 45 years’ experience

PAST FUTURE

Enagás across the world

MexicoTLA Altamira LNG TerminalSoto La Marina Compressor StationMorelos Pipeline

PeruTransportadora de Gas del Perú (TgP)Compañía Operadora de Gas del Amazonas (Coga)South Peru Gas Pipeline

ChileGNL Quintero LNG Terminal

Greece, Albania and ItalyTrans Adriatic Pipeline (TAP)

Spain6 LNG terminals (+2 in development)~11.000 km high pressure pipelines3 underground storage facilities

SwedenSwedegas

5

Enagás LNG capacities

Barcelona LNG TerminalStorage: 760,000 m3 GNLUnloading: 267,000 m3 GNLReloading ratio: 3,500 m3/ h

Huelva LNG TerminalStorage: 619,500 m3 GNLUnloading: 173,400 m3 GNLReloading ratio: 3,690 m3/ h

Cartagena LNG TerminalStorage: 587,000 m3 GNLUnloading: 267,000 m3 GNLReloading ratio: 3,500 m3/ h

El Musel LNG Terminal Storage: 300,000 m3 GNLUnloading: 267,000 m3 GNLReloading ratio: 6,000 m3/ h

Bilbao LNG Terminal (40%)Storage: 450,000 m3 GNLUnloading: 267,000 m3 GNLReloading ratio: 3,000 m3/ h

Sagunto LNG TerminalStorage: 600,000 m3 GNLUnloading: 266,000 m3 GNLReloading ratio: 3,000 m3/ h

2 3

6

55

4

6

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)

7

Spain:• 4 LNG terminals 100% owned

� 2,266,500 m3 LNG storage capacity

� 5,450,000 m3(n)/h regasification capacity

• 2 partially owned LNG terminals� 1,050,000 m3 LNG storage capacity

� 1,800,000 m3(n)/h regasification capacity

Capacity Flexibility Technology Development

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 operationswordwide in Spain

• Renewable power generation: � 8.7 MW in LNG Terminals

� 4.4 MW in Transmission networkinfrastructures

Around 20%-30% of the total energyconsumption

• Integration with industrial processesof partnersIntegration with a CCGT process at Cartagena LNG Terminal and coldrecovery for industrial use at Barcelona LNG Terminal

TOTAL CAPACITY in Spain

• 3,316,500 m³ LNG storage capacity

• 7,250,000 m³(n)/h regasification capacity

A worldwide reference with more than 45 years’ experience

LNG Trading Hubs

60active operatorsand more than

100registered

LNG HUB

LNG HUB

LNG HUB

LNG HUB

LNG HUB

LNG HUB

8

TWh %

PVB 144 33%

Mugardos 11 3%

BBG 60 14%

Sagunto 63 14%

Barcelona 99 23%

Cartagena 9 2%

Huelva 47 11%

Total LNG 288 66%UGS 6 2%

Total 438 100%

2015

• LNG liquidity• Third Party Access• Free capacities

The flexible LNG terminal concept

Regasification1

Parking3

Trucking1

Small scaling3

Bunkering4

Re-export1

Transhipment2

Traditional services

Small scale

Big scale

LNG Railroad2

9

COST

UPstream

TIME

SMALL (+1-3% CAPEX)

SHORT(1–3 years)

MIDstream

LONG

DOWNstream

HUGEHIGH

MEDIUM

PLAYERS(impact)

“A FEW MORE”(over the whole downstream)

THE WORLD!(but local)

FEW(spot)

Energy Efficiency Operational ExcellenceMIDstream facilities have the capability to be the

best player for maximize the competitiveness of

GN into the value chain

10

60%

18%

7%

6%

4%3% 1%1%

Re-exports loaded by reloading country in 2014 (6.4 Mt)

Spain, 67

Belgium, 23

France, 10

Netherlands, 9

Portugal, 7

South Korea, 3

USA, 1

Brazil, 2

Nº Vessels

Big Scale Logistics: Reloadings

Source: Web EnagásIncluding reloading and coool-down operations

8.091

22.697

31.802

60.185

15.500

2011 2012 2013 2014 2015

x2,8

x1,9

x1,4x0,3

Spanish Reloadings (GWh & Nº Vessels)

524224 70 25

Source: International Group of Liquefied Natural Gas Importers

11

28%

16%

8%18%

5%

6%

4%

6%5% 4%

Spain, 24

Belgium, 12

France, 6

Netherlands, 15

Portugal, 5

South Korea, 4

USA, 4

India, 4

Singapore, 3

United Kingdom, 3

Nº VesselsRe-exports loaded by reloading country in 2015 (6.4 Mt)

Small Scale LNG Logistic Model

12

REGASIFICATION SATELLITE PLANTS LOCATION

1,067 Satellite Plants

~34,400LNG trucks loaded per year

International leader in LNG truck loading

• Destinations: more than 59 across Europe (France, Italy, Portugal, Switzerland, Macedonia)

• Demand coverage: 1,400 GWh/year

±12 LNG cargoes



Index

LNG storage & associated costs

13

LNG Import Terminal Configurations: Technical Description

* Site selection depends on navigational safety, port infrastructure and marine operations.

Configuration* LNG Storage Jetty Onshore Facility Pipeline Regasification

Onshore

Regasification

Terminal

Full LNG

containment tank

180,000 m³

Single berth

Onshore

regasification

terminal

Onshore

pipelineOnshore

FSRUFRSU

173,000 m³Single or dual berth +

Breakwater not required

Onshore

regasification

facility

Subsea pipeline FSRU

FSU + Offshore

Regasification

FSU

173,000 m³ەSingle or dual berth +


Onshore

regasification

facility

Subsea pipeline Offshore

(Jetty based)

FSU + Onshore

Regasification

FSU

173,000 m³Single or dual berth +


Onshore

regasification

terminal

Cryogenic piping

over the trestleOnshore

14

CONFIGURATION PROS CONS OTHERS RECOMMENDATION

OnshoreRegasification

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 long-term investment

• More adequateto handle withlong term natural gas supplygrowth

More recommended forLONG 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 ifport infrastructure is available

• Lower costs forshort/medium termsolutions (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

• Temporalysolution until theonshoreregasificationterminal is built

More recommended forSHORT TERM

PROJECTS except in case of exceptionalconditions (SoS or

environmentalconditions)

LNG Import Terminal Configurations: Pros & Cons

15

0

200

400

600

800

1.000

1.200

1.400

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Total Cost (USD M.)

years

Cost comparison On shore Terminal vs FSRUs alternat ives

on shore terminal

FSRU (construction)

FSRU (leasing)

Cost comparison of the alternatives

• 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

Break even point: 8-10 years

16

Source: IGU.


LNG storage & associated costs

Index


17

Storage & associated costs

Imbalances

Losses

Unloading16,988 € per Ship

35 €/GWh

LNG Storage 32,4 €/GWh/d

Reloading176,841 € per Ship

1,563 €/GWh

Small scale relaoding

87,978 € per Ship

521 €/GWh

TARIFFS

18

Port Costs

Imbalances Summary

EXCESS LNG DEFICIT LNG

Based on total contracted Regasification Capacity (LN G 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)

Minimum LNG stock allowed: 0 kWh

If LNG stock in excess ≤ (4 x total daily contracted capacity) � Daily invoice of (2.5 x LNG Storage tariff) Daily invoice of (Quantity less than zero x 10%

Gas Reference Price)If LNG stock in excess > (4 x total daily contracted capacity) � Daily invoice of (10 x LNG Storage tariff)

� 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 9.6.6 of the NGTS.

19

• UNBUNDLING OF SERVICES UNDER RD984

Losses

RELOADING

No reloading losses undernormal operation

conditions

UNLOADING

0.005% of theunloaded LNG

FUEL GAS

Covered by Terminal Operator: Efficiengy

20

21

Conclusion

Propuesta

PLAN de MEJORA 2016

Enagás understands its role as logistics solution providerand aims to improve LNG competitiveness.

LNG storage costs are currently settled for the traditionalservice of regasification. To develop bunkering and storagebusinesses, market needs:

� Unbundling of storage services .

� Modifying storage imbalances for capacitiesdedicated to storage.

New LNG FSU storage could be needed in some cases to further develop bunkering services.

Thanks for your attention

LNG terminals in the Mediterranean Sea

DOCKS: 1 LS 1 SS: 2,000 / 266,000 m3 LNG

STORAGE: 760,000 m3 LNG / 6 Tanks

REGASIFICATION: 1,950,000 m3 (n)/h (544.3 GWh/d)

LNG TRUCK LOADING: 3 bays, 50 trucks/day

LNG METHANE TANKER LOADING: Max. 3,500 m3/h

Barcelona

See one more LNG terminal in the Mediterranean Sea on next slide

TRANSSHIPMENT: Available

DOCKS: 1 LS 1 SS: 7,500 / 266,000 m3 LNG





Cartagena


LNG terminals in the Mediterranean SeaSee two more LNG terminals in the Mediterranean Sea on previous slide

DOCKS: 1 LS: 30,000 / 266,000 m3 LNG


REGASIFICATION: 1,000,000 m3 (n)/h



Sagunto


LNG Terminals in the Cantabrian Sea

DOCKS: 1 LS: 65,000 / 266,000 m3 LNG


REGASIFICATION: 800,000 m3 (n)/h (223 GWh/d)



El Musel


DOCKS: 1 LS: 7,500 / 270,000 m3 LNG


REGASIFICATION: 800,000 m3 (n)/h (223 GWh/d)

LNG TRUCK LOADING: 1 bay, 15 trucks/day


Bilbao


LNG Terminals in the Atlantic Sea

DOCKS: 1 LS: 7,500 / 175,000 m3 LNG





Huelva


the lng storage business and associated · pdf filethe flexible lng terminal concept...

Documents