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Zeebrugge LNG terminal: creating opportunities in the LNG value chain Pieterjan Renier – 21 September 2011
#01 Fluxys in a nutshell#02 Zeebrugge LNG terminal: market driven development#03 And how we keep on carving out its future
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OVERVIEW OF ACTIVITIES
Transmission
FLUXYS N.V.Fluxys SA.
Hub services
Fluxys EuropeFor Belgian market: 19 bcm/yCross-border: 95 bcm/y LT booked
80 traders62 bcm/y nettraded (2010)
LNG terminalling
StorageTransmission &
LNG terminalling outside Belgium
(Spot market)
700 mcmworkablevolume
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LNG terminalling
Regulated activities100% open accessTariffs approved by regulatorCommercial conditions approved by regulator
Operationalsupport services
for shippers6.7 mt/ythroughput
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OUR VISION: PLAY A KEY ROLE IN DEVELOPING THE INTEGRATING NW EUROPEAN GAS MARKET
NORWEGIAN FIELDS
GOAL: provide suppliers with an efficient system to move natural gas flexibly from any
LUXEMBOURG
UNITED KINGDOM
FIELDS
GERMANY
LNG SOURCES
NETHERLANDS
border point in the NW European gas market to their customersSTRATEGY
> Develop new infrastructure in Belgium to contribute to liquidity and security of supply
> Cooperate with other TSOs outside Belgium and
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FRANCE
outside Belgium and co-invest in new projects or take stakes in existing infrastructure
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Nord Stream
Existing
Under constructionNETRA
Dornum
Emden
GMSL Operational
services& software
BBL (20%)NEL (19%)
Project
Forward flow pipeline
Bidirectional pipeline
Reverse flow project (2014)
ERMOb ilb h
Project (FID)
GateZeebrugge
TransmissionStorage
Intercon-nector (15%)
Dunkerque LNG (25%)
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South Stream Nabucco
Baumgarten
ERM Waidhaus
Überackern
Oltingue
Obergailbach
Montoir
StorageLNG terminallingZeebrugge Hub spot market
GROUP STRUCTURE
Publigas(Group venture of the Belgian municipalities)
Caisse de dépôtet placement du
Québec
Listed on second marketNYSE
Euronext Brussels
Fluxys SARegulated activities Fluxys G
Fluxys EuropeNon-regulated activities
90% 10%
89.97%
10.03%
100%
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Golden share held by the Belgian state
Regulated activities in Belgium
Fluxys G Non regulated activitiesin Belgium and activities
outside Belgium
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KEY ROLE OF THE ZEEBRUGGE AREA
LNG TERMINAL
1987
Interconnector pipeline⇆ United Kingdom
Zeepipe from Norwegian gas fields
INTERCONNECTORTERMINAL
1998ZEEBRUGGE HUB
SPOT MARKET: PIPE GAS & LNG
1998 ZEEPIPETERMINAL
1993
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Zeebrugge area: overall capacity of about 48 bcm/y
= 10% of border capacity needed to supply Europe
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ZEEBRUGGE HUB: ONE OF THE LEADING SPOT GAS MARKETS IN MAINLAND EUROPE
80 active traders 2008-2011: several all-time highs in average daily net traded volume 2010 t t d d l f 62 b 3 5 ti l2010: net traded volume of 62 bcm = 3.5 times yearly consumption Belgium
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#01 Fluxys in a nutshell#02 Zeebrugge LNG terminal: market driven development#03 And how we keep on carving out its future
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1975
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LNG SUPPLY CONTRACT
SONATRACH/DISTRIGAS
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1978 :
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CONSTRUCTIONof PENINSULA
for the LNG terminal
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Commissioning
1987
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2004-20082004-2008
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First capacityenhancement
+3.3 mt/y
First capacityenhancement
+3.3 mt/y
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LNG TERMINAL 24 YEARS IN OPERATION
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Reception of >1,200 LNG carriersLNG carriers from 7,500 to 266,000 m3 LNG About 70 different ships received
Throughput capacity: 6.7 mt/y – 110 slotsStorage capacity: 380,000 m3 LNGSend-out capacity: 1,700,000 m3(n)/h
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CARGO MOVEMENTS SINCE 2007
20082.2 mt unloaded0.3 mt loaded
20094.8 mt unloaded0.2 mt loaded
20072 mt unloaded
20104.6 mt unloaded0.3 mt loaded
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In the first half of 2011, 41 cargo’s were unloaded, amounting to 2.7 mt of LNG.
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QUALITY OF LNG
Depending on source, however, most LNG ships are coming from Qatar
Typical LNG qualityyp q y- 0,1 - 0,3% nitrogen - 93 - 93,2 % methane - 6,6 - 6,7 % ethane - 0,03 - 0,17% propane - 0,006 - 0,015 % i-C4H10 - 0,008 - 0,015 % n-C4H10 - 0,0008 % i-C5H12 - 0,0005 % n-C5H12
d it 440 k / ³ @ 160°C d 100 b
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- density: 440 kg/m³ @ -160°C and 100 mbarg- GHV: 42 000 kJ/m³(n) - Wobbe: 54 500 kJ/m³(n)
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LONG TERM CONTRACTUAL SITUATION
Shipper Duration(years)
Quantity (mt) Slots As from
3 Long term capacity contracts
f Q / f
Qatar Petroleum / ExxonMobil 20 3.3 55 01/04/2008
Distrigas 20 2.0 33 01/04/2007
GDF SUEZ 15 1.4 22 01/10/2008
TOTAL 6.7 mt 110
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Full assignment from QP/ExxonMobil to EDFT until end of 2011Agreement between GDF SUEZ and ConocoPhillips
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COMBINING LONG-TERM AGREEMENTS WITH SPOT DELIVERIES
Primary market- If scheduling of slots by primary shippers leaves sufficient
spacing: extra slots created on the primary market and published- First half of 2011: 12 extra slots created (16 in 2010)
Secondary market- Any slot not to be used by primary shippers:
made available on the secondary market and published- First half of 2011: 16 slots made available (20 in 2010)
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LT TARIFFS: ATTRACTIVE PRICE LEVEL
5,245
6€/MWh
Slot price benchmark 2010
Slot 750 443 €/Slot
1,04 1,24 1,281 0,99 1,17
1,74
0,91
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3
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5Additional Schend Out Capacity 1.95 €/kWh/h/yAdditional Storage 96.39 €/m3 LNG/yAll tariffs are indexed at 35% of CPI, with base Index of July 2003 (112.59)
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0
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PanigagliaItaly
RovigoItaly
BarcelonaSpain
CartagenaSpain
SinesPortugal
MontoirFrance
Fos-TonkinFrance
Fos-CavaouFrance
ZeebruggeBelgium
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TAKING DESTINATION FLEXIBILITY TO ANOTHER LEVEL: SINCE AUGUST 2008 LOADING OF LNG SHIPS
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Tariff:berthing right = 130 294 €75 000 € + 0.1 €/(MWh loaded)544 €/h for gassing-up and cooling down
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LNG SHIP LOADING SERVICE A SUCCESS
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Until now 19 ships have berthed for loadingLoading service used by multiple shippersFlurry of destinations
Source: public information
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ZEEBRUGGE SECOND JETTY: CREATING SMALL SCALE LNG OPPORTUNITIES
Successful trial loading of 7 500 m3 LNG vessel Coral Methane at existing jetty in 2010
LNG loading slots for 3 500 m3 LNG to 217 000 m3 LNG vessels
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TAKING DESTINATION FLEXIBILITY TO ANOTHER LEVEL: LAUNCH TRUCK LOADING SERVICE IN 2010
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Capacity of 4000 trucks per yearCurrent destinations
UK (on ferries departing from Zeebrugge)Continental Europe (Germany, …)
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SERVICES AND PRICING
LNG Truck Approval Service Charge €3 264 per LNG truck approval
Truck services offered by Fluxys LNG:
Service Charge LNG Truck LoadingService Charge €512.20 per loaded LNG truck
Cool Down Service Charge €2 176 per cool down
LNG can be bought from all shippers active at the terminal:
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LNG can be bought from all shippers active at the terminal:- Shippers with long term contracts: GDF Suez, EDF Trading and
Distrigas ENI- Other shippers on the moment they have LNG at the terminal
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#01 Fluxys in a nutshell#02 Zeebrugge LNG terminal: market driven development#03 And how we keep on carving out its future
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OPEN SEASON SECOND CAPACITY ENHANCEMENT
5th tank2nd jetty
Exploratory phase Open Season initiated late 2007Non-binding interest by multiple shippers for a variety of services
j y
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g y p pp yStarting from wide spectrum of demand: outline of capacity enhancement- Phase 1 – Second jetty for unloading and loading (~ 2014): investment decision taken- Phase 2 – Additional capacity (~ 2016):
> Up to 160,000 m3 LNG storage> Up to 450,000 m3(n)/h send-out
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CURRENTLY BINDING PHASE OPEN SEASON
Offer:- Additional throughput capacity of 2-3 bcm/y- 70 additional berthing rights for loading of (small) LNG ships with g g g ( ) p
a lower scheduling priority.- Acceptance of LNG carriers from 3,500 m3 LNG to Q-max- Capacity subscription: period up to 20 years
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INDICATIVE TIMETABLE BINDING PHASE OPEN SEASON
Launch Confirmation of interest
Contractual documentation
Binding requests end allocation of
capacitiesEnd 201111 Mar 2011 15 July 201103 Feb 2011 27 Oct 2011
Fluxys LNG makes services offer
available
Signature of confidentiality
Fluxys LNG makes available contractual
documentation
Market consultationon going
Approval of contractual documents
by CREG
g yagreements and submission
of non-binding interestParticipating companies to submit binding
capacity requests, Fluxys LNG to
allocate capacities
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For more information: www.fluxys.com/en/Services/LNGTerminalling/OpenSeason/OpenSeason.aspxwww.fluxys.com/en/Services/LNGTerminalling/OpenSeason/OpenSeason.aspx
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NON-BINDING INTEREST
Availability Total indicative requests
Average requested
period (years)period (years)
Slots (#/y) 40 133 to 167 13,3
Additional storage (m³ LNG/y) 90 000
262 000 to
372 00015,6
Additional send-out 100 000920 000 to
14 8(m³(n)/h/y) 100 0001 100 000
14,8
Loading slots (#/y) 70 215 to 225 12,4
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INDICATIVE TARIFF PROPOSAL
Existing tariffs for existing and new capacities
New tariff for loading services
Unloading slot 750 433 €
> Berthing right 130 294 €
> Basic storage 313 682 €
> Basic send-out 306 467 €
Additional storage 96.39 €/m3 LNG/y
Additional send out 1 95 €/(kWh/h)/yAdditional send-out 1.95 €/(kWh/h)/y
Additional berthing 75 000 €
> Variable loading fee 0.18 €/MWh loaded
Tariffs base 2003, indexed at 35% of Belgian consumer price index
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CONCLUSIONS
Zeebrugge LNG terminal: track record of successfully anticipating new market conditions and opportunities
- Open access facility with throughput capacity doubled during first it h tcapacity enhancement
- Introduction of ship and truck loading services to increase destination flexibility
Second capacity enhancement:- Loading of small scale LNG vessels- Attractive LT tariffs
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