CNG Marine Transport: The Emergence of a Third Major Gas Transportation Industry John Dunlop EnerSea Transport LLC Gastech 2005 Bilbao, Spain 15 March 2005
CNG Marine Transport:The Emergence of a Third Major Gas Transportation Industry
John DunlopEnerSea Transport LLC
Gastech 2005Bilbao, Spain15 March 2005
EnerSea Transport LLC
Gas Transport and Storage service provider Privately owned; based in Houston, TXExperienced team of industry leadersWorld class partners & business relationships
NIPPON STEEL
CNG – Proven Technology
1967-70– SIGALPHA, Columbia Gas
Since 1970’s– CNG Land Transport
Since 1980’s– Public & Commercial NGVs
CNG Vehicles - Worldwide
Columbia Gas
Emergence of Modern CNG
Advanced steel propertiesOffshore buoy systemsShip construction efficiencyClassification societies & maritime administrations“Promotion” of CNG by motivated regulators“Volume Optimized” CNG technology
VOTRANSTM “Volume Optimization” Proprietary CNG Breakthrough
Store gas at optimum temperature-pressure– Reduced compression– Reduced steel– Increased storage efficiency: 60-100% greater storage capacity
than high pressure CNG designs
0
0.1
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0.9
0 500 1000 1500 2000 2500 3000Pressure, psia
Mass = PVol ZRT
Z fa
ctor
, com
pres
sibi
lity
-20o F
Hi-pressure,Ambient StorageHi-pressure,Ambient Storage
Rich GasRich Gas
Lean GasLean Gas
Technology Acceptance & Marine Standards Developed
• Maritime Class Societies’ initiatives to support CNG transport implementation:– DNV: CNG carrier Rules issued– ABS: CNG carrier Guide issued
• Prototype Testing underway – To be completed in 2Q 2005
• International institute established devoted solely to CNG (Centre for Marine CNG)
• ”Class Approval in Principle” designations have been granted for CNG carriers
Reduce Reserves Threshold
<1 to 4+ Tcf ReservesReduce Reservoir AppraisalHighly ScalableCapture UpsideMitigate Risk
Enhanced Asset Management------
Improved Risk-weighted NPVs
LNG Targets
CNGTargets
World’s Gas Fields by Size ex N America
Source:HIS Energy Group
1.5-15 TCM
150-1500 BCM
30 to 150 BCM
15 to 30 BCM
7.5 to 15 BCM
3 to 7.5 BCM
0.3 to 3 BCM
All Others
Commercial ViabilityPr
ojec
t Rat
e (M
M s
cf/d
)
$1.00 - $2.50/mmbtu total transport tariff
Incl. CNG fleet and loading/offloading terminals
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100
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1000 2000 3000 4000 5000One-way Transit Distance (km)
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Unique CNG Transport Applications
• Direct offshore gas field offtake• Deep and ultra-deep water fields• Associated gas• Uncertain reserves volumes• Dynamic & new gas markets• Limited LNG receiving terminal access
Direct Offshore Loading System
Low cost, proven systemsSubsea flowline & flexible riserApplicable in deep & ultradeep waterSingle or dual buoys (continuous production)
Courtesy Bluewater
Low Cost Delivery Terminal Access
Simple, proven and highly cost effectiveSafe & secure - offshore operationsEases application approvals
Where will CNG be used?Some EnerSea Efforts
Recent Feasibility Studies:– South America– Atlantic Canada– Unocal Philippines – S.E. Asia Associated Gas– New Zealand (OSL/Itochu)– U.S. Ultra-Deepwater
Feasibility Studies Underway:– Med Import Study– India Gas Imports (GAIL)– Marathon Oil
Specific Project Initiatives:– White Rose Pre-FEED (Husky)– PNG-New Zealand Pre-FEED
(OSL/Itochu)- India Gas Imports (GAIL)- Marathon Oil
Gas produced “Direct-to-Ship”
Field operations & production support onboard
Gas storage & transport system
Eliminates deepwater pipeline, other infrastructure
500-3000 meters water
Gas Production/Storage/Shuttle
Recently Announced EnerSea Project
New Zealand Gas Imports•Client: Oil Search & Itochu•Source: Papua New Guinea•Rate: up to 200+ MMscfd•Status:- Feasibility study completed- OSL developing offtake agmts.- Completing downstream
infrastructure studies
Atlantic Canada Project Development
White Rose Gas Offtake•Field Operator: Husky Energy•Rate: 150 - 300 MMscfd•Associated Gas•Status:- Screening studies completed- Pre-FEED underway
Summary
CNG transport is an important new gas solutionTechnology advancements have greatly improved CNG economicsWorldwide CNG applications are being pursuedCNG transport is ready for project deployment
CNG vs. LNGComparative Risk Assessment
LNG CNG
Liquefaction Compression & Refrigeration
Loading Loading
Port Departure Buoy Departure
Transit Transit
Port Arrival Buoy Arrival
Discharging Discharging
Regasification Decompression
Class Approval-in-Principle (Granted April 2003)VOTRANS is deemed to have an equivalent order of
magnitude of risk as LNG, with a slight risk management advantage since all risks are offshore