lng storage: a growth story? - easyfairs · 3000.0 3500.0 1990 1995 2000 2005 2010 2015 2020 2025...
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Do I have your attention?
Goldman Sees LNG as Biggest Commodity After Crude This Year (Bloomberg)
What do you see?
LNG storage in Europe
Source GLE
Topics
11.45 Growth of LNG as a transportation fuel and infrastructure developments across Europe
- Demand for LNG storage
- Developing break bulk LNG services
- Overcoming the technical and regulatory challenges
Stefaan Adriaens Commercial Manager, Gate Terminal
12.15 Integrating LNG into existing storage terminals
- Quantitative risk assessments for an LNG intermediate terminal (with 5-7 bullets) integrated into an existing petrochemical energy port
- Feasibility study on integrating an LNG bunkering infrastructure (including FC LNG storage tank) into a new oil tank terminal
Dennis van der Meulen, Consultant, DNV GL - Oil & Gas
LNG is a great product, also when burning it
• Liquid Gas (main component is methane – CH4)
• Temperature around -162 degrees Celsius
• The volume of LNG is around one six-hundredth of it volume in gas
• LNG is a non-toxic, non-carcinogenic, non-corrosive, odorless, and colourless liquid
• Density around 450 kg/m3
• 1 m³ of LNG contains approx. 7 MWh of energy
• In large volumes stored and transported at atmospheric pressure as a boiling liquid (small volumes might be pressurized)
• LNG is not LPG, very different
• Over 50 years experience with excellent safety and environmental performance
• Flammable 5-15% concentration
• Exhaust emissions compare favorable versus other HC
LNG
Copyright © 2013 Gate terminal
Despite reduced pollution, lives are still at risk
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•Air pollution is the number one environmental cause of premature death in the EU •430 000 premature deaths from particulate air pollution (PM2.5) in EU-28 in 2011 •Air pollution causes cancer, cardiovascular diseases, respiratory diseases such as infections, asthma (WHO 2014)
Map: Loss in average statistical life expectancy (months) due to identified anthropogenic PM2.5 (2000). Source EU
Why is there so little LNG storage in NWE if this great
product is the 2nd biggest commodity?
• For a long time characterised as long term
tramway between a few countries exporting
and a few countries importing where the LNG
was regasified. Niche
• Growth with buyers/sellers markets
• More trade flows
• In opposite directions
• Also shorter term
• Global
• Events (drought, Fukushima, shale,
SoS, earthquakes)
• LNG as a fuel
• Diversion
• Reloads
• …
• Mainstream (around 10% of worldwide
gas market which itself represents 25%
of worldwide energy consumption)
• Simularities with bulk liquid?
Are LNG terminals rare?
LEGEND
OPERATIONAL
UNDER CONSTRUCTION / COMMITTED
PLANNED / UNDER STUDY
GASPORT FOR FSRUs
CANARY ISLANDS
OPERATIONAL 23 LNG Terminals
(201 bcm/a)
UNDER CONSTRUCTION 5 LNG Terminals
(28 bcm/a)
PLANNED 24 LNG Terminals
(> 146 bcm/a)
Source: GLE, March 2015
Detailed information on LNG terminals available at www.gie.eu, Maps & Data
Topics around LNG storage hindering roll out
• Expensive and time consuming • A typical tank costs around 100 million EUR
• Full integrity • No seals/floating roofs. No smell. No losses.
• Unit prices are around 130 €/m3 (LNG)/y or around 20 €/MWh/y (without injection or withdrawal) • Lower energy content
• 3-5 years lead time • Alternatives for gas storage
• depleted gas fields, aquifers, salt caverns which have lower gas storage volume costs e.g 2 €/MWh/y (moreorless triple if injection and withdrawal costs are included)
• BOG • After 1 year around 33-50% is evaporated into gas grid • What remains becomes heavier and could become offspec • New technological developments (such as reliquefaction, vacuum insulated pipes) might
mitigate this
• So, in NWE, only for operational reasons (golden rule: twice size of biggest ship)
Low send out utilisation until recently…
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Send out peaks in Feb 2012 and March 2013 (cold
periods). Optionality versus baseload
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Value returning given SoS and decreasing domestic production
… due to high demand in Asia
Leverage our location: Gate 2.0
0%
25%
50%
75%
100%
NOx SOx CO² Particles
Em
isso
n v
alu
es
(%)
Diesel LNG
Also in the middle of SECA
Diesel vs LNG
Copyright © 2013 Gate terminal
0,1% S
Also NOx ever stricter
LNG fuel emissions for a coaster
Also less noise: trucks
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0
10
20
30
40
50
LNG fuel Low Sulphur fuel* Convential fuel** +scrubber
Convential fuel**
SOx Emissions (Tonnes/year)
0
2,000
4,000
6,000
8,000
LNG fuel Low Sulphur fuel* Convential fuel** +scrubber
Convential fuel**
CO² Emissions (Tonnes/year)
0
50
100
150
200
LNG fuel Low Sulphur fuel* Convential fuel** +scrubber
Convential fuel**
NOx Emissions (Tonnes/year)
0
2
4
6
8
10
LNG fuel Low Sulphur fuel* Convential fuel** +scrubber
Convential fuel**
Particles Emissions (Tonnes/year)
LNG/gas as a product making its inroads into
transportation
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Transportation fuels
Renewables
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Gas
Oil0.0
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MToe
5 year changes
Source BP 2035 Outlook, 2015
Modifying jetties
Installations of smaller fenders in place of dummy fenders to accomodate
for vessels between +/-5000 m3-65000 m3
Review ESD logic (surge, QRA)
No interference on larger vessels during construction nor operation
Example of new type fender
Location of new fenders
Fill in small scale distribution needs in a cost
effective way
Copyright © 2013 Gate terminal
Coral Energy berthing at Gate Coral Methane berthing at Gate
Short sea transport of LNG: available
Example of reach of shortsea with figures in/out of Rotterdam in 2013/14. Stars indicate large scale import terminals. Stars indicate large scale import terminals. Triangles indicate small scale import terminals. The colors indicate whether small scale reload is operational, under construction or not available yet. Norway not indicated. Adapted from GLE
Offering conventional re-loading to global markets
Copyright © 2013 Gate terminal
January 2014 – Artic Discoverer and Wilpride
All european terminals looking for a new roles
IGU
Truck loading
Truck at loading station LNG Truck at Gate
7 trucking customers From UK to Poland, from Norway to Italy Used for marine, trucks, industry 174 trucks in 2014
LNG by truck over Europe: available
Reach of truckloadings out of Rotterdam and Zeebrugge. Stars indicate large scale import terminals. Triangles indicate small scale import terminals. The colors indicate whether truckloading is operational, under construction or not available yet. Norway not indicated. Adapted from GLE.
And the reality check
LNG trucks in China (240000) and US (25000) and NGV all over the world (1 % or 15 million) Also LNG carriers on LNG and a limited numbers of barges
Dedicated small scale jetty: under construction
Impression of the LNG break bulk terminal
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Impact on storage use
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Some LNG storage events worldwide
• Storage in US as, awaiting export, import terminals are even less used then in Europe
• Korea storage for Japan at underutilised terminal
• Floating storage
• Singapore pure storage play
• Kochi (0,5 USD/Mmbtu per month)
• Zeebrugge: FID for a transshipment storage (very short storage between unloading and reloading for Yamal LNG towards Asia
Copyright © 2013 Gate terminal
Some conclusions
• LNG is available @ any place @ any quantity in
NWE, especially with FIDs taken on 3 bunker ships.
• All European terminals (and worldwide) improving
services and offering more choice.
• LNG for transport: well beyond chicken and egg but
also beyond the hype. Step by step.
• One would expect more storage requirements
resulting from the new trading patterns and new
applications of LNG (but on the other hand some EU
2050 forecasts show lower gas use)