Post on 12-Jun-2015
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transcript
Øivin Iversen
Vice President
Höegh LNG
Floating LNG Production (FPSO) The opening up of an untapped LNG supply source
2 / 28. juni 2010
Floating LNG Production (FPSO) –The opening up of an untapped LNG supply source
• Key industry trends and their implications for NOCs
• The market opportunities for LNG FPSOs-will the NOCs participate?
• Risks and Rewards for LNG FPSO Projects
• Project schedule, cost and the competitive advantage of LNG FPSO
3 / 28. juni 2010
Höegh Group Family controlled since 1927…..
Other ActivitiesAsset ManagementReal estate RailwaysMediaOther assets
Höegh AutolinersHöegh LNG
World’s 4th largest autoliner company with 50+ vessels
37 years of LNG experience and innovation
Shipping ActivitiesHöegh LNGHöegh AutolinersCETech
4 / 28. juni 2010
Höegh LNG Existing fleet
Delivered in June 2010, from Samsung Heavy Industries. The vessel is chartered to GDF Suez LNG Trading SA on a 20 year Time Charter for the Neptune project offshore Boston, US.
Delivered in June 2010, from HanjinHeavy Industries. The vessel will be on TC to Repsol for 33 months plus options. Ship management and Operation Agreement
Delivered in 2009, from Samsung Heavy Industries. The vessel is chartered to GDF Suez LNG Trading SA on a 20 year Time Charter for the Neptune project offshore Boston, US.
Delivered in 2006, from Mitsubishi Heavy Industries. The vessel is dedicated to the Snøhvit project, and is chartered by Statoil ASA.
Delivered in 2006, from Mitsubishi Heavy Industries. The vessel is chartered on a 20 year TC for Total on the Snøhvit project.
Delivered in 1979, from Newport News. Tractable LNG Trading owns the liquefied natural gas carrier Matthew. The vessel is operated by Höegh LNG.
Delivered in 1973, from Rosenberg shipyard in Norway. Prototype of the Moss spherical cargo containment system.
STX
Frontier
Suez
Matthew
GDF Suez
Cape Ann
GDF Suez
Neptune
Arctic
Princess
Arctic
Lady
Norman
Lady
5 / 28. juni 2010
Höegh LNGStrategic Projects
• Floating Production Storage and Offloading (FPSO)•
• Front End Engineering and Design (FEED) completed 2009• Most advanced floating production project to date• Adaptable to wide variety of gas and associated gas fields• Operations agreement with Prosafe 2010• FEED fully funded by Höegh LNG
• Port Dolphin• Deepwater port offshore western Florida• Approved by US authorities• Offshore terminal for shuttle re-gasification vessels (SRVs)• Premium gas market• Fully funded by Höegh LNG
• Port Meridian• Deepwater port offshore western England• Approved by UK authorities• Offshore terminal for floating storage and re-gasification vessel (FSRU)• Fully funded by Höegh LNG
• Triton• Stationary FSRU offshore terminal in the Adriatic • Permitting process in progress• Joint development agreement with GDFSuez• GDF Suez and Höegh LNG to operate, tendering managed by HLNG
• CETech• Compressed Natural Gas for moderate distance / moderate volume natural
gas transportation.• competitive advantage is its unique composite tank technology• Wholly owned subsidiary.
6 / 28. juni 2010
Business strategy The complete Floating LNG value chain
Production & Liquefaction
Transportation Storage Re-gasificationExploration End user
FPSO Existing LNGC’s
Neptune SRV’sNeptune SRV’s / DWP Port Dolphin /
DWP Port Meridian / Triton
7 / 28. juni 2010
Höegh LNG The floating LNG chain – NOCs participation
Gas Asset
Gas Asset
Gas Asset Liquefaction Company
LNG Offtaker
Power plants
Industrial
Retail
FPSO Transport Regas
FPSO Lease Agreement
Time Charter Agreement
Regas Capacity
Gas Purchase LNG Sales & Purchase Agreement
UpstreamUpstream MidstreamMidstream DownstreamDownstream MarketMarket
Scope:• Complete & Produce wells• Tie in from oil field to LNG
FPSO• Maintain and ensure flow
Participants:• NOCs• E&P companies
Scope:• Aggregate gas resources• Own gas molecules in
liquefaction facility• Finalize LNG sales and
Purchase agreement• Lease FPSO
Participants:• E&P companies• NOCs• Utility companies• Investors
Scope:• Purchase LNG• Provide shipping for LNG• Provide regas capacity• Market and sell gas
Participants:• Utility companies• NOCs• LNG Portfolio players
Scope:• Industrial and retail
consumption of gas
Participants:• Utility companies• Industry Consumers
8 / 28. juni 2010
Key industry trends and their implications for NOCs
• More smaller off takers looking for Natural Gas
• The smaller off takers also want to diversify the supply sources
• Flaring of associated gas no more allowed
• Need to handle the gas to sustain oil production
• Changing the view on associated gas from “a cost” to “a revenue”
• Extensive technical development on Floating LNG the last 10 years
• Smaller sized projects 1-3 MMTPA open up for Independent Service Providers
• NOCs can work with the Independent Services Providers in a similar manner as for Oil FPSOs
Production Transportation Regasification Market Access
9 / 28. juni 2010
The market opportunities for LNG FPSOsWill the NOCs participate?
Estimated Distribution of Offshore Gas Fields (Logarithmic scale)
Source: Pareto Securities
3922
1043
719
347
337
73
4
1 10 100 1000 10000
<0.1 tcf
0.1-0.25 tcf
0.25 -0.5 tcf
0.5-1 tcf
1-5 tcf
5-50 tcf
50-100 tcf
Future Technology
Large scale onshore Facilities, potentially with a LNG FPSO as early production
LNG FPSO or smaller onshore facilities
Future technology
Borderline economics
Future technology
Borderline economics
10 / 28. juni 2010
LNG Process Capacity:
LNG: 0.85 - 3.00 MTPA
Gas Reserves: 1-4 TCF
Lifespan: 15 – 20 years
LNG FPSO Design Envelope – Medium Size
Example 1
LNG 1.70 MTPA
LPG 0.46 MTPA
Condensate 0.22 MTPA
Example 2
LNG 1.00 MTPA
Condensate 0.10 MTPA
Example 3
LNG 2.60 MTPA
11 / 28. juni 2010
Risk and rewards for LNG FPSO Projects
• Risks• A novel concept based on experience from Oil FPSOs and LNG industry
• Rewards• LNG production of stranded reserves means revenue
• Economics in smaller gas reserves
• Larger fields can be developed with a 2 MTPA LNG FPSO to achieve early revenue and continue with baseload onshore development
• Project construction at specialized construction site (Shipyard) to reduce risk
12 / 28. juni 2010
WHAT ARE THE CRITICAL ISSUES?
Risks and Rewards for LNG FPSO Projects
13 / 28. juni 2010
Critical issues for Floating LNG projects
1. Liquefaction technology
2. Cryogenics
3. Marine LNG experience
4. Offloading
5. Interfaces
6. Offshore design & operations
7. Process plant integrity
8. EPC capabilities
9. Permitting
10. Cost & Finance
Your team need to have excellent competence in all these areas
14 / 28. juni 2010
Höegh LNG - Choosing the right team
HLNG FPSO
Topside Engineering
Shipyard
FinanceCiti/JPM
LNG shipping/regas
FPSO Operations
15 / 28. juni 2010
Höegh LNG FPSOFPSO Development history
• Complete feasibility study for converting 129 000 m3 LNG carrier to FPSO (Moss Maritime)
• Screening of suitable liquefaction technologies for FLNG applications (HLNG / Moss Maritime)
2006
2007• Initiated Pre-FEED study for new-build LNG FPSO (Topside – CB&I Lummus, Hull/Marine - Aker Yards,
Turret-Bluewater, Tandem Offloading – Framo)
2008• Completed Pre-FEED study
• 3rd party review of topside (Energy & Power Ltd.)
• 3rd party verification of the Niche LNG technology performance (Sintef Research Institute)
• Initiated extensive FEED (Topside - CB&I Lummus, Hull/CCS/Marine/Integration – DSME, Turret - APL)2009• Completed FEED - including 3rd party reviews and project risk assessments. Approval in Principle by DNV
• Established Contract structure, Operations and Maintenance philosophies, Commissioning and Start-up procedures
• Optimization Studies for further improvement of performance, efficiency and economics
• 10+ Client/Field specific studies for clients
• MOU with Prosafe Production for operation
• MOU with KBR for Topside Engineering
2010
16 / 28. juni 201016 / 28. juni 2010
• Technical:
• Comprehensive technical basis – developed to early Detail Engineering in some areas
• All key interfaces between Hull and Topsides closed-out during FEED
• 300 000 engineering man-hours spent to date
• 1 500 technical documents developed (from PFD’s to Mechanical Datasheets)
• Project Execution (EPC):
• Project Execution Plan
• Project Team
• Contracting Strategy / Basis for EPC Contracts
• Commissioning and Start-Up Strategy
• Operation and Maintenance Partner (Prosafe)
• Project Risk Analysis performed
• Capex based MTO’s and quotes from potential suppliers
Höegh LNG FPSOProject Development
17 / 28. juni 2010
Höegh LNG – LNG FPSO team
• Complete consortium
• World leaders in every segment
• Unmatched experience• Combines Marine LNG experience with FPSO experience
• Sufficient and adequate engineering capacity and competence within the same company
Our Uniqueness1. Liquefaction technology √2. Cryogenics √3. Marine LNG experience √4. Offloading √5. Interfaces √6. Offshore design & operations √7. Process plant integrity √8. EPC capabilities √9. Permitting √10. Cost & Finance √
18 / 28. juni 2010
Typical field development timeline
3-5 yrs 6 mths 0.5 – 2 yrs 1 yrs 1 – 1.5 yrs 4 yrs
Exploration AppraisalAssess
ConceptsSpecific
engineeringDevelopment
Discovery FID
Commitment wells
completedConcept Selection
E&P Company
development phases:
Conventional timeline
• Typical schedule from FID to first LNG: 4 years• Schedule driven by topside engineering, long lead items and topside installation
19 / 28. juni 2010
Why choose Höegh LNG ? Improved timeline
HLNG Technical Maturity
3-5 yrs 6 mths 0.5 – 2 yrs 1 yrs 1 – 1.5 yrs 4 yrs
Timeline improvements:
Exploration AppraisalAssess
ConceptsSpecific
engineeringDevelopment
Discovery FID
Commitment wells
completedConcept Selection
E&P Company
development phases:
3-5 yrs 6 mths 0.5 – 2 yrs 0.5 yrs 0.5 - 1 yrs 4 yrs
Conventional timeline
Total timeline improvements: 12-18 months
20 / 28. juni 2010
Project Execution – key to success
Select FEED Execution OperationAssess
Value
(NPV
)
Time
Good ProjectDefinition
Poor ProjectDefinition
Good Execution
Poor Execution
Poor Execution
4 years of technical development already performed to support a Good Project Definition
21 / 28. juni 2010
Participation by NOCs in Höegh LNG FPSO development
• Höegh LNG offers NOCs joint owner-ship and operator-ship of the LNG FPSO
• Through partnership, the NOCs can get access to all work done and experience gained from 4 years of extensive development
• Höegh LNG has a proven track record of financing large and complex LNG projects
• Höegh LNG has long standing relationships with all major shipyards with LNG ships and large new-built FPSO’s competence and capacity
• Höegh LNG offers the shortest possible schedule to 1st LNG at a competitive price
22 / 28. juni 2010
Participation by NOCs in Höegh LNG FPSO development
LNG FPSO SPV
Höegh LNG
NOCs & Partner(s)
Gas Liquefaction Company SPV
Partner(s), NOCs and/or Asset owners
Gas Field(s)
Asset Owner(s)
NOCs
LNG Buyer
Partner(s)
LNG Shipping Co
Payment flowsContractual commitments
Lease agreement
Gas Purchase Agreement
FOB LNG sale Purchase Agreement
LNG
T/C
Entities owning the gas in the various phases
Gas processing service provider.
Shipping service provider.
23 / 28. juni 2010
Höegh LNGSummary
• LNG FPSO allows for monetizing of smaller fields
• LNG FPSO allows for earlier start up and earlier cash flow
• LNG FPSO offers to turn cost of flaring and re-injection to revenue
• Through a partnership with Höegh LNG the NOCs can benefit from 4 years of development work to shorten field development schedule
• Through a partnership with Höegh LNG the NOCs can get access to world-leading companies in development of the LNG FPSO: KBR, DSME and Prosafe Production
24 / 28. juni 2010
THE ONLY PARTNERSHIP OF THIS KIND IN THE MARKETCOMBINING LNG AND FPSO EXPERIENCE
LNG FPSOHöegh LNG & NOC
LNG Shipping/Regas Topside Engineering
ShipyardFPSO Operations
FinanceCiti/JPM
Thank you for your attention!
Øivin Iversenoivin.iversen@hoegh.com