Argent Marine Companies Argent Marine Companies Emerging LNG ISO Container Markets Inland and Intercoastal Intermodal Distribution Zeus Intelligence June 26, 2013 Gary W. Van Tassel Manager, LNG Technical Argent Marine Companies
Argent Marine Companies Argent Marine Companies
Emerging LNG ISO Container Markets
Inland and Intercoastal Intermodal Distribution
Zeus Intelligence
June 26, 2013
Gary W. Van Tassel
Manager, LNG Technical
Argent Marine Companies
Argent Marine Companies
Joint Venture
Argent Marine Maersk Line, Limited
• Specialist in LNG marine vessels and related engineering services
• Advisor to domestic and international LNG marine operations
• Service provider to major oil & gas companies
• U.S. flag Jones Act
qualified company
• Ship design and engineering expert
• 28 years of experience in:
o Tanker operations o Vessel management o Maritime technical
services
• Global intermodal capability
• Established U.S. flag network
State-of-the-art
marine/land-based
technology for the
safe and economical
distribution of LNG
Our partnership brings a unique solution to the LNG value chain
Argent Marine Companies
Intermodal LNG
Trucking Rail
ISO Tanktainers: efficient storage, loading and transport
Argent Marine Companies
Intermodal LNG
• Reduced transport cost model for small parcels of LNG
• Minimal to no new infrastructure required
• Reach markets not previously accessible or addressed by traditional approach to LNG distribution
Transportation fuel
Power production
Industrial Users
Conversion from LPG
• Covered under existing regulations
International – IMDG Code
Argent Marine Companies
ISO LNG Container On Container Ship
1. Fill ISO LNG Container @ Liquefaction Facility
2. Transit to Port Container Terminal
3. Lift ISO LNG Container off Chassis (rail) and Stage for Ship Arrival
4. Transport ISO LNG Container from Staging Area To Ship Side
5. Load ISO LNG Container on to Ship (Regulated under IMDG Code)
6. Containership Transits to Delivery Port(s)
7. Unload ISO LNG Container from Ship
8. Transport ISO LNG Container to Staging Area
9. Onward Delivery via Established Intermodal Systems • Road
• Rail
• Inland Marine
Argent Marine Companies
ISO LNG Container On Container Ship
10. Transit Empty ISO LNG Container to Port Container Terminal
11. Lift ISO LNG Container off Chassis and Stage for Ship Arrival
12. Transport ISO LNG Container from Staging Area To Ship Side
13. Load ISO LNG Container on to Ship
14. Containership Transits to Loading Port
15. Unload Empty ISO LNG Container from Ship
16. Transport ISO LNG Container to Staging Area
17. Load Empty ISO LNG Container onto Chassis (or rail)
18. Transit Empty ISO LNG Container to Liquefaction Facility
19. Fill ISO LNG Container @ Liquefaction Facility
Argent Marine Companies
Container Handling Costs
Cost Element US East Coast US Gulf Coast US West Coast
#2 Transport from Liquefaction1 $450-$550 $450-$550 $450-$550
#3 Gate In to Terminal
$250 $215 $335 #4 Stage at Terminal
#5 Load onto Ship
#15 Unload from Ship
$250 $215 $335 #16 Stage at Terminal
#17 Gate Out from Terminal
#18 Transport to Liquefaction1 $450-$550 $450-$550 $450-$550
Total $ / LNG Tanktainer $1,400 $1,330 $1,570
$ / mmBTU (~85% fill lvl)2 $1.82 $1.73 $2.04
1. Local drayage cost ~ 25 miles each way
2. Does not include cost/labor at LNG source
Argent Marine Companies
Additional Impacts
1. Loading bay occupancy at LNG source
2. Increased road traffic
3. Tanktainer hold time
4. LNG heat gain and LNG equilibrium conditions at delivery point
5. Storage location on ship limited (on deck only)
Argent Marine Companies
Intermodal LNGC Transport System
1. Fill ISO LNG Container @ Liquefaction Facility
2. Transit to Port Container Terminal
3. Lift ISO LNG Container off Chassis (Rail) and Stage for Ship Arrival
4. Transport ISO LNG Container from Staging Area To Ship Side
5. Load ISO LNG Container on to Ship (Regulated under IMDG Code)
6. Containership Transits to Delivery Port(s)
7. Unload ISO LNG Container from Ship
8. Transport ISO LNG Container to Staging Area
9. Onward Delivery via Established Intermodal Systems • Road
• Rail
• Inland Marine
Combine Multiple Steps to Single
Evolution to Reduce LNG Delivery Cost
Argent Marine Companies
ISO LNG Container On Container Ship
10. Transit Empty ISO LNG Container to Port Container Terminal
11. Lift ISO LNG Container off Chassis and Stage for Ship Arrival
12. Transport ISO LNG Container from Staging Area To Ship Side
13. Load ISO LNG Container on to Ship
14. Containership Transits to Loading Port
15. Unload Empty ISO LNG Container from Ship
16. Transport ISO LNG Container to Staging Area
17. Load Empty ISO LNG Container onto Chassis (or rail)
18. Transit Empty ISO LNG Container to Liquefaction Facility
19. Fill ISO LNG Container @ Liquefaction Facility
Combine Multiple Steps to Single
Evolution to Reduce LNG Delivery Cost
Argent Marine Companies
Intermodal LNGC Transport System
Intermodal LNGC
Argent Marine Companies
Intermodal AT/B LNGC
Patented
Argent Marine Companies
Intermodal AT/B LNGC
Argent Marine Companies
Intermodal AT/B LNGC
• Designed as a Gas Carrier – IGC code
• Reduced man-power to load tanktainers
• Holding time prior to final delivery limited
Tanks locked in after loading – hold time starts with departure from loading terminal
Boil-off management during voyage – hold time starts with discharge of tanktainer from vessel
• Multiple delivery ports
• Capability to discharge LNG in bulk
• Designs for ocean and inland/river
• Bunker Vessel
Argent Marine Companies
LNG Delivered Cost - Trends
$
/
m
m
B
T
U
Delivered Volume
ISO LNG Container on Container Ship
Argent Marine Companies
1. Includes all landside delivery/tankage costs
Indicative Transport Economics (up to 1,000 NM)
$2.00-$4.00/mmbtu(1)
($.17 - $.34/gallon)
Maersk-Argent Intermodal
Argent Marine Companies
1. Includes all landside delivery/tankage costs
Indicative Transport Economics (up to 1,000 NM)
$.35 - $1.10/mmbtu
($.03 -$.09/gallon
Bulk
$2.00-$4.00/mmbtu(1)
($.17 - $.34/gallon)
Intermodal
Argent Marine Companies
Thank You
www.maersklinelimited.com
www.ArgentMarine.com