lng in cameroon - evolen
TRANSCRIPT
LNG in Cameroon
How the « gas risk » can become an opportunity
By Max NussbaumGDF SUEZ LNG
Project director
in charge of the infrastructures development of
Cameroon LNG project2011-10-13
This presentation is not intended to provide the basis for any evaluation of
GDF SUEZ or of any of its subsidiaries. Although GDF SUEZ uses reasonable
care to include in this presentation information which it believes is up-to-date
and accurate, GDF SUEZ makes no representation or warranty as to the
adequacy, accuracy, completeness or correctness of such information nor
does it warrant or represent that the presentation shall be complete in every
respect. GDF SUEZ shall have no liability resulting from the use of the
information provided in this presentation nor shall it have any liability for the
absence of any specific information herein. The information may be changed
by GDF SUEZ at any time without prior notice. Nothing herein may be
considered as being an offer to purchase or subscribe securities. The name
and logo of GDF SUEZ, as well as the name and logo of affiliated companies,
that appear in this presentation are trademarks and trade names protected
by national and international laws. The copyright on this presentation
belongs to GDF SUEZ.
Disclaimer
2
Content
• Cameroon Gas status
• Development schemes screening
• Concept Design selection and optimisation processes
• Selected offshore pipeline and LNG plant design overview
• Conclusion
3
Cameroon: Now is the time for gas
Cameroon has enjoyed stability for several decades, which has permitted : Highly diversified economy: agriculture 20% of GDP
industry 22% of GDP , oil production 7% of GDP Stable growth 3% p.a. over last 5 years Low level of public debt: 1.5 B EUR (9% of GDP)
Cameroon’s oil production started in 1977, and is now declining. Current production is well below 1986 peak
The country needs a strategy to supplement revenues
Can natural gas replace declining oil revenues?
1970
Stat
e to
tal r
even
ues Oil revenues
Gas revenues
2050Note: Cameroon key facts: 475,000 km2 ; 19 millions inhabitants ; GDP/capita = 1 238 $(2010)
Progressive, then long term stable revenues
4
Trinidad and Tobago: reserve response to sanction of 1st LNG unit
LNG export agreed
Cameroon LNG should foster gas exploration
• Gas discoveries in Cameroon have been made by pure chance during oil exploration. In absence of market, gas has been seen as a “gas risk” by most exploration companies
• Very significant exploration potential remaining with numerous undrilled gas prospects
• Confirmation of viable export scheme will likely attract investments in gas exploration
• Significant increase in proven gas reserves could follow sanction of Cameroon LNG (see example of Trinidad and Tobago below)
• SNH (NOC) and GDF SUEZ have concluded a partnership to develop LNG exports which has the full state support
5
LNG Project: Strong State ambition
June 2009: conclusion of pre-feasibility study confirming preference for an onshore plant (vs. an LNG FPSO) to be located in South Cameroon (Kribi region)
End 2009: opening of GDF SUEZ office in Cameroon
May 2010: formal attribution by the State of a site for the LNG plant and launch of PreFEED study with Foster Wheeler
Dec 2010: signing of Framework Agreement for Cameroon LNG project between State of Cameroon and GDF SUEZ, confirming the essential fiscal, financial and commercial principles for the project
April 2011: conclusion of PreFEED study with Foster Wheeler
June 2011: signing of commercial pre-agreements with gas producers in Cameroon
In 2006/2007, the country recognised the urgency to develop its gas industry
In January 2008, President Biya issued a presidential decree expanding the mandate of SNH* to include gas monetization as a priority
SNH developed Gas Master Plan: allocation of certain volumes for export and decision to proceed with single integrated gas export project
2008, SNH selected GDF SUEZ as strategic partner to develop an LNG export project
Under the lead of SNH and GDF SUEZ, the LNG project has gained momentum and is on the right track
* SNH: Société National des Hydrocarbures (National Hydrocarbon Company) 6
Development schemes
20/01/2009 confidential
Kribi
Limbe
LPG extraction and LNG productionLPG extraction
LPG extraction and LNG production
LPG extraction and LNG production
LPG extraction and LNG production
7
Preferred Configuration
820/01/2009confidential
KribiLPG extraction and LNG production up to 3.5 Mtpa
gas transportation network
9
Concept Design selection and optimisation processes
• Phase 1: Screening and technology selection
– Reference case definition
– Screening and selection studies to fix the concept design of the infrastructures (Design Case)
• Phase 2: Engineering development including design optimisation
– The Design Case is further developed to establish PFDs and main equipment list
– Value Engineering review at PFD level to simplify and reduce capital and operation costs . 41 ideas are identified, resulting in 20 items considered in the preFEED and 21 items to be studied at FEED phase
– CAPEX and OPEX estimate
Design Selection Philosophy • The main design options were studied and weighted using the
following ranking criteria :
Production Availability CAPEX/OPEX Economics (processing fee and upstream NPV) Operability- Maintainability Production and operation Flexibility Technology robustness and experience Environmental impact, based on CO2 equivalent Local content
• Any design option is assessed by difference to the reference case to evaluate the impact on the above criteria
• Main design drivers are :– robust operation – minimise CAPEX – create value
10
Main Technology SelectionsOffshore Pipeline
• Pipeline routing / landfall options
• Liquids Management
• Hydrate control
• Corrosion control (internal)
LNG Plant / Marine Facilities
• Major Driver Selection
• LPG Extraction
• Cooling Media Selection
• LNG tank / LPG tanks
• Process heat method / source
• LNG/LPG Loading Berth, Need for breakwater
• Construction facilities (e.g. materials offloading berth)
11
Technology SelectionsOther LNG Plant / Marine Facilities Decisions
• Power generation (type of drivers)
• AGRU method / solvent – planned conventional
• Mercury removal adsorbent – planned conventional
• Fire water (fresh water / sea water)
• Marine Offloading Facilities options
• LNG/LPG/Condensate ships selection
• Use of alternative LNG loading line type / methods – no intention to study
• Permanent community – premise provided in SOW, may be adjusted
• Plant production capacity debottlenecking / increase (brainstorming)
• Short or long term LNG capacity reduction (limitation of feed gas) (brainstorming)
• Differential cost of single vs. parallel refrigeration compressor strings (brainstorming) 12
Pipeline system overview
Cameroonian gas reserves
Pipeline system of 270 km
Aggregation of several offshore gas fields
4 tie-ins
Cameroon Volcanic line crossing 13
Pipeline profile for the selected route
CVL
14
Pipeline landfallshore approach
15
LNG Plant
Liquefaction plant– 1 LNG train up to 3.5 Mtpa
– One onshore tank of 190 000 m3 (full containment)
– Two LPG tanks of 44 000 m3 (full containment)
– One Condensate tank 60 000 m3 (single containment with internal floating roof)
Marine facilities– A jetty of about 1.6 km in length
– One LNG carrier every 5 to 10 days
16
Plant layout
17
Site preparation
18
Marine facilities
19
Conclusions
• New liquefaction plants are needed in the Atlantic Basin
• The Cameroon LNG project has full State support
• SNH and GDF SUEZ have established a very solid partnership
• GDF SUEZ offer long term market access for the LNG production, LNG
expertise and track records in developing and financing large
infrastructure projects
• SNH, GDF SUEZ and upstream operators present in Cameroon are
complementary, commercial pre-agreements with gas producers
have been signed in June 2011
• The project has gained the required momentum for successful
development making the gas risk as an opportunity20