Imagination at work LPG for power generation June 8 th , 2016 Abuja, Nigeria A GE-Vitol solution
Imagination at work
LPG for power generation
June 8th, 2016Abuja, Nigeria
A GE-Vitol solution
2
Presenters today
GE Proprietary Information—Class II (Confidential)
LPG for power generation
Dr. Christoph Reimnitz
Global Structuring Leader
Gas to Power: Dev. & Investment
GE Global Growth & Operations
Guillaume Quiviger
Vitol Investment Group
Africa power development
LPG Growth and infrastructure
3
Today’s objectives
GE Proprietary Information—Class II (Confidential)
LPG for power generation
1. Introduce LPG & discuss its benefits as a fuel for powering
Nigeria’s industrial and commercial customers
2. Outline a turnkey GE-Vitol LPG power generation solution
4
Agenda
GE Proprietary Information—Class II (Confidential)
LPG for power generation
Why LPG?
GE-Vitol LPG power solution
Examples of LPG solutions
GE, Vitol at a glance
5
GE Proprietary Information—Class II (Confidential)
Power servicesGas power systems Steam power systemsBaden, Switzerland Baden, SwitzerlandSchenectady, NY, USA
Water/process techDistributed powerJenbach, Austria Trevose, PA, USA
GE Hitachi nuclearWilmington, NC, USA
Advanced reactor technologies
• ESBWR, ABWR, PRISM
• Outage and asset optimization
• Fuels, engineeringservices
• Generators and Steam Turbines
• Air Quality Control Systems (AQCS)
Optimizing plant performance
• Maintenance, repairs and outage solutions
• Multi-year service agreements
• Hardware/software upgrades solutions
High efficiency, scale power
• Power Plants (combined and simple cycle)
• Gas turbines
• Heat recovery steam generators
• Generators andcontrols
Advanced steam power expertise
• Recip. engines (0.2 to 10MW)
• Jenbacher, Waukesha brands
• Efficient, fuel flexible
• Natural gas and special gas
• Base load, peaking, CHP, oil field power
Power near and at the point of use
• Chemical and monitoring solutions
• Engineered systems
• Mobile water
• BOO services
Energy efficient water solutions
Steve Bolze, CEOSchenectady, NY
5
GE Power~$30B ‘14 revenue ~65,000 employees >120 countries
LPG for power generation
GE Proprietary Information—Class II (Confidential)
6
Vitol
GE Proprietary Information—Class II (Confidential)
LPG for power generation
390,000 bpd
In excess of 390,000 bpd refining capacity world wide. Refinery investments include; Viva Energy Australia; Geelong refinery, Varo Energy; Cressier in Switzerland and Bayernoil in Germany, ATPC in Belgium and FRCL in UAE.
1,240 MW
VPI Immingham – one of the cleanest and most efficient power plants in Europe with a capacity of c2.5% of UK peak demand.
18.1 million m3
18.1 million m3 storage:- 8.7 m m3 in VTTI
- 2.5 m m3 in
Blueknight
- 4.2 m m3 in Varo
Energy.
- 1.6 m m3 in Viva
Energy Australia
- 900 k m3 in Vivo
Energy.
- 159 k m3 in
Midstream
2,480+ outlets
Vitol’s marketing include bunkering, 5.5 million tonnes of jet into wing at 60 airports worldwide and Vivo Energy’s 1,600+ petrol stations across Africa. Viva Energy, Shell’s downstream business in Australia has added over 900 petrol stations.
20 years
Vitol has 20+ years experience in E&P managing projects across diverse geographies, from FSU to the Philippines. Current projects include gas in Ghana and shale in US.
Refining Terminals Marketing E&P Power
Physical trading,
logistics and distribution303 million tonnes crude and products traded in 2015:
6,629 ship journeys undertaken
200+ vessels at sea at any one time
Vitol’s trading business is built upon long standing
relationship with producers, refiners, industrial customers.
7
Vitol
GE Proprietary Information—Class II (Confidential)
LPG for power generation
Vitol LPG import into Nigeria
Kt pa
CAGR 2012-16
Prorated April-Dec
Existing: Two LPG spheres – total of 16,000 m3 nett storage capacity
Upcoming: One propane sphere of 6,000 m3 nett capacity
• Navgas LPG Terminal, Lagos
– Partnered with NIDOGAS, to build two 4,000 tonne pressurised spheres
– Dedicated jetty, enabling us to keep the local market supplied at all times
• Expanding with a Propane sphere
in construction... Only one in Africa
LPG leader in Nigeria
2015
207
2014
124
2013
68
2012
63
2016
+39.7%
239
80
159
• Significant local Nigeria LPG volume…
5 MTPA with only 5% used domestically
• Looking to source LPG locally and back it
up with imports
8
GE Proprietary Information—Class II (Confidential)
LPG for power generation
Agenda
Why LPG?
GE-Vitol LPG power solution
Examples of LPG solutions
GE, Vitol at a glance
Where is LPG used?
9
GE Proprietary Information—Class II (Confidential)
LPG for power generation
Liquefied Petroleum Gas
3.9% of petroleum consumption is LPG
LPG is a mix of propane (C3) and butane (C4)
Current LPG demand
Power emerging as major consumer
1%
100%
Industry
Checmical28%
10%7%
World
11%Agriculture
Domestic &cooking
Transport
Nigeria
Refinery
44%
2015 LPG consumption by sector, kt pa
Example of LPG power projects
Location CountrySizeMW COD
Tema Ghana 144 2017
US VI St Croix 230 2016
Puerto Rico US 4 2016
Roatan Island Honduras 28 2016
Puerto Rico El Salvador 38 2015
Lekki FTZ Nigeria 12 2014
Source: EIA, Vitol
Diesel
KeroseneJet
Fuel oil
LPG
Other
Gasoline
10.04
1.243.91
6.80
1.24
19.36
1.72
What is LPG?
LPG
Pure propane
Pure Butane
90-10HD5 30-70 0-100Cooking fuel range
10-90Nigeria spec.
10
GE Proprietary Information—Class II (Confidential)
LPG for power generation
What is Liquefied Petroleum Gas?
Source: EIA, Argus
40
320
80
120
160
200
240
280
0
2010
MiddleEast
NorthAmerica
Europe &Eurasia
Lat America
Africa
Asia
15.7615.30
16.27
16.07
15.37
2011 2012 2013 2014
3.6%
Compared to 1.2%
pa for crude
20
10
0
5
15
Algeria
2012 2014
1.950
2013
1.956
4,500
0.3%
Egypt
Nigeria
Libya
2.311 1.830
2010 2011
South Africa
Angola
Other
World LPG production
CAGR 2010-14
-0.3%
-1.7%
+1.9%
+2.7%
+4.1%
+8.0%
Africa LPG production
-12.2%
+7.9%
+4.1%
X%
-5.8%
-13.5%-0.8% +6.9%
Production
acceleration
Nigeria supply growing… local and importsVitol adding to current import capability
Rapidly growing global and local Nigeria supply… LPG emerging as a secure global fuel
8
12
16
20
24
28
32
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GE Proprietary Information—Class II (Confidential)
LPG for power generation
Price differential: Diesel vs. LPG ( Abuja)
Source: Platts, Bloomberg, GE, Vitol
01.01.2014 01.01.201601.01.2010 01.01.2012 01.01.202001.01.2018 01.01.2022
LPG
Diesel
Forward curves
787 440
LPG 27%
cheaper
LPG 22%
cheaper
Indicative delivered prices for an industrial customer in Abuja USD per MMBTU, (Inclusive of all transportation & handling costs)
1.5-3.0Y payback
Price differentials enable fast economic payback… little risk on project economics
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GE Proprietary Information—Class II (Confidential)
LPG for power generation
Benefits of LPG power
Source: EIA, GE, Vitol
Flexible, reliable, secureCleaner & available assets
Low emissions
g/bhp-hr
Service intervals (hours)
Oil change, overhauls, hours (Top end & Major)
PM10 0.15
1.70
NOx 0.15
3.501.00
0.005
THC 4.00
CO
4.00
4.00SOx0.00
Diesel
VHP on C3
22500 – 45000
+100%
LPG
Diesel 12500 - 25000
Cheaper fuel vs. diesel
Indicative delivered LPG pricing in AbujaUSD/MMBTU, (Incl. of transportation & handling)
171616151417
2628
2928
121212121212
1819
24
20
2011 20192013 20172015
LPG Diesel
• Vitol LPG imports priced in the US $, with abundant supply expected to continue growing
• Nigeria diesel imports linked to volatile international crude
250
LPG 2,000
+800%
Diesel
LPG 98%
1.7%
Diesel 96.3%
Engine availability (Over 50,000 opr. hours)
1.7% availability 1+ month of operation
• Flexibility… switch to gas with no hardware changes
• Reliability... Guaranteed LPG w. dedicated supply chain
o Supplied from largest LPG terminal in West Africa
o Dedicated trucks to shuttle between Lagos and user site
o 5-14 day storage at site
• Quality… Standard LPG spec.
o High pressure product… unadulterated fuel quality
o Vitol supply setting quality std. in Nigeria for LPG
• Security… Gaseous fuel makes theft difficult
GE Proprietary Information—Class II (Confidential)
LPG for power generation
e.g. economics for industrial user in Abuja
Source: Platts, Bloomberg, GE, Vitol, customer, Asiko
291
206
45
542
2015
1
2
3
Increased
uptime1
CHP: total
efficiency3
Lowest cost
molecule2
Cleaner LPG enables
maintenance
Cheaper LPG enables
opex. cost savings
Heat recovery via CHP
eliminates diesel boilers
Total benefitUSD pa
Annual savings (USD per year)
Net annual benefit
3 main economic benefits contributing to up to half a million dollars in annual savings
1 Based on USD 5,000 / month and 755 reduction in service charges2 Based on propane vs. diesel, 150kL/month generation consumption3 Based on 43kL/month of diesel for boilers
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GE Proprietary Information—Class II (Confidential)
LPG for power generation
Agenda
Why LPG?
GE-Vitol LPG power solution
Examples of LPG solutions
GE, Vitol at a glance
14
GE Proprietary Information—Class II (Confidential)
LPG for power generation
GE – Vitol’s turnkey LPG power solution
Fuel supply and storageFuel supply and storage
Engines and servicing
Fuel supply and storage
Project execution & management
15
GE Proprietary Information—Class II (Confidential)
LPG for power generation
GE’s LPG, propane products (0.2– 30 MW)
0.90 – 1.00 MW
0.40 – 0.68 MW
1.80 – 2.30 MW
0.37 – 1.30 MW
0.16 – 0.60 MW
Fuel flexibility Applications
VGF
VHP
275GL+
Type 3
Type 4
• ~3,500 units sold• Fast start (peaking, backup) • Commercial & indust. power
• ~14,000 units sold• Fast start (peaking, backup)• Commercial & indust. power
• ~600 units sold• Commercial & indust. power
• ~8,000 units sold• Commercial & indust. CHP• Propane / NG
• ~2,500 units sold
• Commercial & indust. CHP• Biogas (landfills, waste water)
24 – 30.7 MW
• 176 units sold• 4 in Nigeria• Fast deployable
TM 2,500
Aero-derivatives
Jenbacher
Waukesha
All LPG qualities
Propane only
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GE Proprietary Information—Class II (Confidential)
LPG for power generation
… supported locally by our partners
•Sales & services via…
– Clarke Energy: Jenbacher
– IGPES: Waukesha
•Installation & commissioning
•Operations & maintenance, including field services
•Training, overhaul services
•GE certified technicians
•Long term service agreement
•Local spare parts availability
•Presence in major cities17
GE Proprietary Information—Class II (Confidential)
LPG for power generation
Fuel supply, storage & operationsSourcing Delivery Site storage
Global LPG trading leader
• Local & global fuel souring
• Local source from refineries & gas processing plants
• Globally trading 10 MTPA
• 17 dedicated LPG vessels
• Owns & operates Navgas; largest W.Africa LPG import
• Adding 4,000 ton propane sphere (only one in Africa)
Virtual pipeline
• Asiko, a Nigeria Vitol JV, specialized in LPG delivery
• On site LPG delivery with dedicated infrastructure
• Dedicated fleet of trucks (<3Y old), growing at 15% pa.
Dedicated storage
• 5 days LPG availability1 with pressurized storage
• Bullets customized to meet fuel needs, site constraints
• Installed by Asiko/Vitol with GE/EPC as turnkey solution
• No theft , no fuel adulteration
Turnkey LPG supply, delivery, storage solution from Vitol-Asiko
1: Actual storage to be site-specific and commensurate with distance from terminal 18
GE Proprietary Information—Class II (Confidential)
LPG for power generation
Project management for a turnkey solution
Engines
LPG procurement
Fuel infrastructure• GE engine solution with performance guarantees
• Full EPC contract• Long Term Service
Agreement optional• Local GE servicing
partners, infrastructure
• Turnkey fuel procurement– Supply
guarantee… local and/or imports
– Fuel financing if required
• Full engineering of storage solution
• Bullets built to accept LPG range (propane to butane)
• Procure, construct, engine site connect
• Virtual pipeline (dedicated trucks, capacity at terminal)
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GE Proprietary Information—Class II (Confidential)
LPG for power generation
Agenda
Why LPG?
GE-Vitol LPG power solution
Examples of LPG solutions
GE, Vitol at a glance
20
GE Proprietary Information—Class II (Confidential)
LPG for power generation
Commercial & industrial propane power
Project & product
Commercial CHP applications
Product: Jenbacher J420Performance:
• 925/1000kWe (50/60Hz)
• 39-40% efficiency
Est . commissioning3Q 2016
Fuel
HD5 propane
Source: US gulf coastLocal partners: Delivery & storage
Attractive economics vs. liquid fuel power gen… option to shift to gas in the future
Puerto Rico
Puerto Rico
21
GE Proprietary Information—Class II (Confidential)
LPG for power generation
GE-Vitol LPG solution for US Virgin Islands
GenerationExisting WAPA turbines converted by GE to burn LPG, in addition to diesel, providing flexibility
Cost effective and reliable power gen… $90M fuel savings/20% lower CO2 per year
St Thomas
St Croix
St John
Randolph Harley Power Plant
Richmond Power Plant
US Virgin Islands
Supply7 year supply contract ensures 100% of USVI’s fuel needs met
InfrastructureUpgraded port to accommodate LPG; ownership transfer to WAPA of terminal & storage in 5Y
VaporizationLPG superheated to reach required turbine conditions by vaporization units installed on site with 100% redundancy built in
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GE Proprietary Information—Class II (Confidential)
LPG for power generation
Asiko depots in Lagos, Kano, Abuja on LPG
GenerationWaukesha VHP7044 running on LPG and delivering 750 kVA
VaporizationLPG vaporizer used to deliver fuel in gaseous form to engines at low pressure
InfrastructureGAS: Typically a gas tank on site to store LPG along with piping and gas pressure regulators. Also, LPG safety systems
Asiko Depots, Lagos, Abuja & Kano - Nigeria
SupplySupply by largest LPG road tankers in the country (40% larger than conventional tankers)
Cost effective & reliable power generation… Independence from diesel operations
Nigeria
23
GE Proprietary Information—Class II (Confidential)
LPG for power generation
GE-Vitol LPG power solution
GE contacts: Toyin Abegunde (SSA sales head) Christoph Reimnitz
+234-814-132 2870 +44-7801-662 750
[email protected] [email protected]
Turnkey LPG power solution
Guaranteed fuel supply & security
Switch to natural gas as available
Less opex – hedge vs. rising diesel
Asset life & maintenance interval
5-7 days onsite fuel storage
Local service & repair
Attractive economics/payback
Financing for qualified customers
Can use existing diesel as back-up
Vitol contacts: Guillaume Quiviger
+44 20 7312 4498 [email protected]
24
25
Imagination at work
LPG for Power GenerationWaukesha & Jenbacher Gas Engines
GE Distributed Power
GE Proprietary Information—Class III (Confidential) Export Controlled—U.S. Government approval is required prior to export from the U.S., re-export from a third country, or release to a foreign national wherever located.
June 8th, 2016Abuja, Nigeria
Contents
27
© 2015 General Electric Company - All rights reserved
LPG for power generation
LPG product portfolio
Jenbacher, Waukesha engines
Aux. system, engine operation
Distributed Power overview
LPG for power generation
GE Distributed Power overview
28
© 2015 General Electric Company - All rights reserved
IPP & Utilities
Oil & Gas
Grid firming
Agriculture & Food Processing
Commercial & Industrial Buildings
Greenhouse
Our end markets
Steel
Mining Waste-to-Power
LPG for power generation
29
© 2015 General Electric Company - All rights reserved
30
GE Distributed Power – Product portfolio (50 Hz)
Broad gas-fired portfolio … ~200 kW to 10 MW
LPG for power generation
0.1 – 1.5 MW 1.5 – 5 MW
MOBILE/EMERGENCY POWER
5 – 10 MW
POWER GENERATION
MECHANICAL/O&G/MINING/MARINE
TYPE 2 249 kW – 330 kW
TYPE 3526 kW – 1.067 MW
Type 4746 kW – 1.500 MW
Type 61.820 MW – 4.498 MW
Type 910.38 MW
VGF*220 kW – 685 kW
VHP*540 kW – 1.460 MW
275GL+*2.705 MW – 3.605 MW
VGF*220 kW –685 kW
VHP*540 kW – 1.460 MW
275GL+*2.705 MW – 3.605 MW
J320* generator set1 MW
mobileFlex* J320/VHP*Gas Engines 860 kW – 1MW
616 Diesel Genset 2.55-2.78 MW
© 2015 General Electric Company - All rights reserved
Peaking, backup power
Base load power only
Targeting 4 distinct on-site power generation solutions
Combined heat & power (CHP)
1
2
3Target … commercial, industrial, O&G, agri. facilities
Value prop … Meet site power, heating, cooling needs
GE technology … High efficiency , fuel flexible, fast
start Waukesha & Jenbacher engines
31
Waste to power4
LPG for power generation
Distributed power focus in power generation
© 2015 General Electric Company - All rights reserved
Contents
32
© 2015 General Electric Company - All rights reserved
LPG for power generation
LPG product portfolio
Jenbacher, Waukesha engines
Aux. system, engine operation
Distributed Power overview
Distributed Power’s LPG capable engines
TYPE 3400 kW – 680 kW
TYPE 4900 – 1000 kW
VGF160 kW – 600 kW
VHP370 kW – 1.3 MW
275GL+1.8 – 2.3 MW
0.1 MW 3 MW
33
Jenbacher
Waukesha
© 2015 General Electric Company - All rights reserved
LPG for power generation
Distributed Power’s LPG product portfolio
34
1: Rating available on special release © 2015 General Electric Company - All rights reserved
Waukesha Jenbacher
LPG mix type VGF VHP 275GL+ Type 3 Type 4
100% propane ◼ ◼ ◼ ◼ ◼
≥90% propane (HD-5) ◼ ◼ ◼ ◼ ◼
LPG: ≥50-90% C3 ◼ ◼
LPG: < 50% C3 ◼
LPG: 100 % C4 ◼
0.90 – 1 MW0.40 – 0.68 MW1.8 – 2.3 MW0.37 – 1.3 MW0.16– 0.60 MW
• Economics… cost of PG vs. liquid fuels
• Gas ready … Bridge fuel; little to no mods.
• Security… use local fuels, protect against theft
• Emissions… cleaner vs. liquid fuels
• Availability… svc. intervals, life vs. liquid
fuels; gas to propane/LPG switching capable
LPG for power generation
Contents
35
© 2015 General Electric Company - All rights reserved
LPG for power generation
LPG product portfolio
Jenbacher & Waukesha
Aux. system, engine operation
Distributed Power overview
Jenbacher type 3
36
100% propane & HD-51 1,500 rpm | 50 Hz 1,800 rpm | 60 Hz
Model Tons/hr3 kWe2 Tons/hr3 kWe2
J312 0.09 409 0.09 446J316 0.12 546 0.12 595J320 0.15 682 0.16 744
1: All ratings approved on a special project release basis only from the factory
2: All engines rated @ 40C intercooler water temperature
3: LPG - 1 Kg = 1.975 litres = 0.522gal = 43,690 BTU (LHV) = 45,367 BTU (HHV). Assumed composition 95% C3, 4% C2, % n-C4
HD-5 fuel consumption (gal/hr)3
50Hz 60HzJ312 46 49J316 61 65J320 77 81
HD-5 fuel consumption (kg/hr)3
50Hz 60HzJ312 88 94J316 117 124J320 148 155
LPG for power generation
© 2015 General Electric Company - All rights reserved
Jenbacher type 4
37
100% propane & HD-51 1,500 rpm | 50 Hz 1,800 rpm | 60 Hz
Model Tons/hr3 kWe Tons/hr3 kWe
J420 0.19 926 0.20 1,022
HD-5 fuel consumption3
gal/hr kg/hr50Hz 97 18660Hz 106 203
1: All ratings approved on a special project release basis only from the factory
2: All engines rated @ 40C intercooler water temperature
3: LPG - 1 Kg = 1.975 litres = 0.522gal = 43,690 BTU (LHV) = 45,367 BTU (HHV). Assumed composition 95% C3, 4% C2, % n-C4
LPG for power generation
© 2015 General Electric Company - All rights reserved
Engine operation on Propane HD-5 – Jenbacher
38
Gas
mixerAir
Regulator
dia.ne
Turbo
NG LPG involves no hardware change LPG NG involves minor hardware change to get full NG output1 (turbo, gas train)
Piston
• No core hardware change
on engine/genset from
base NG engine
• Fuel switching capable
o NG LPG/HD-5
o No unit shutdown
needed to switch (on
demand)
Fuel
Throttle
Bypass
© 2015 General Electric Company - All rights reserved
1: ~50 kW drop vs. traditional NG rating, if hardware not changed
LPG for power generation
39
Waukesha Propane & HD-5>90% propane
1,500 rpm | 50 Hz 1,800 rpm | 60 HzVGF kWe kWeP48GL (LCR)1 625 750L36GL (LCR) 471 562H24GL (LCR) 313 372F18GL (LCR) 235 279
VHP 1,000 rpm | 50 Hz 1,200 rpm | 60 HzP9394GSI 1,099 1,322P9390GL 933 1,121L7042GL 701 848L5794GSI 623 762F3524GSI 372 442275GL+ 1,000 rpm | 50 Hz 900 rpm | 60 Hz16V275GL+ 2,351 2,12112V275GL+ 1,755 1,589
1: Contact Waukesha application engineering for product information
© 2015 General Electric Company - All rights reserved
LPG for power generation
40
Waukesha LPG50/50% propane/butane2
© 2015 General Electric Company - All rights reserved
1,500 rpm | 50 Hz 1,800 rpm | 60 HzVGF kWe kWeP48GL (LCR)1 625 750L36GL (LCR) 475 560H24GL (LCR) 310 375F18GL (LCR) 230 280
VHP 1,000 rpm | 50 Hz 1,200 rpm | 60 HzP9394GSI 932 1118L7044GSI 625 750L5794GSI 517 620
1: Contact Waukesha application engineering for product information
2. Contact Waukesha application engineering for performance on different blends. Assumes mix of i-butane and n-butane
LPG for power generation
41
Waukesha LPG100% n-butane2
1,500 rpm | 50 Hz 1,800 rpm | 60 HzVGF model kWe kWeP48GL (LCR)1 391 469L36GL (LCR) 294 351H24GL (LCR) 196 233F18GL (LCR) 147 174
1: Contact Waukesha application engineering for product information
2. Contact Waukesha application engineering for performance on different blends
© 2015 General Electric Company - All rights reserved
LPG for power generation
42
Waukesha – additional non-LPG “hot” fuel capabilitiesHigh energy (2300-3000 BTU) Flare Gas
© 2015 General Electric Company - All rights reserved
• Product capability now extended to
accommodate other high energy fuels
beyond 2300 BTU
• Opens up larger window of flare gas
possibility, for monetization
opportunities not previously possible
with gas engines
LPG for power generation
Engine operation on LPG – Waukesha
43
CarbAir
Piston
Regulator
Fuel Valve
Turbo
ESM
• No hardware change on
engine/genset from base
NG engine
• Fuel switching capable
o Gas LPG
o No unit shutdown
needed to switch
• Gas blending capable1
o Varying LPG mix
o Gas + LPG mix
• High gas quality tolerance
o +/- 150 Btu swings
without adjustments
No hardware change + High degree of fuel flexibility = Hassle free engine operation
1: Blending hardware provided by 3rd parties © 2015 General Electric Company - All rights reserved
VHP AFR2 system sample schematic
LPG for power generation
Contents
44
© 2015 General Electric Company - All rights reserved
LPG for power generation
LPG product portfolio
Jenbacher & Waukesha
Auxiliaries, emissions, O&M
Distributed Power overview
Aux. system: Config. for dual fuel operation
45
© 2015 General Electric Company - All rights reserved
CarburetorIntercooler
air cleaner
Air
Fuel piston
Regulator
Exhaust
Regulator
MAS valve
Solenoid valve
Solenoid valve
Nat. gas LPG
LPG for power generation Aux. components
(non engine)
Vent / safety relief valve
Vapor bypass
Vaporizer
O&M: e.g. with Waukesha engines
46
© 2015 General Electric Company - All rights reserved
e.g. VHP
2000-3000
hours
Oil / filters
Sparkplugs
22K-26K
hoursTop end
overhaul
44K-52K
hours
Bottom end
overhaul
e.g. VGF
1500-2100
hours
Oil / filters
Sparkplugs
11K-24K
hours
Top end
overhaul
33K-48K
hours
Bottom end
overhaul
e.g. 275GL+
4000
hours
Oil / filters
Sparkplugs
36K
hoursTop end overhaul
72K
hours
Bottom end
overhaul
LPG for power generation
Waukesha’s robust rich burn design helps maintain similar O&M profile on LPG vs. NG
LPG emissions: e.g. with Waukesha engines
47
© 2015 General Electric Company - All rights reserved
e.g. VHP e.g. VGF e.g. 275GL+
Fuel NG LPG NG LPG NG Propane
Combustion Rich burn Rich burn Lean burn Lean burn Lean burn Lean burn
Aftertreatment TWC TWC none none none none
NOx (g/bhp-hr) < 0.15 < 0.15 2.0 2.0 0.5 0.5
CO (g/bhp-hr) < 1.0 < 1.0 1.3 1.3 1.5 2.3
THC (g/bhp-hr) 1.7 1.4 1.7 1.7 5.3 3.9
PM10 0.005 0.005 0.005 0.005 0.005 0.005
SOx none none none none none none
Ta
ilp
ipe
ou
tLPG for power generation
Similar emissions profile vs. natural gas… significantly lower than diesel/HFO operation
Contact – Distributed Power commercial team
© 2015 General Electric Company - All rights reserved
48
NameAndreas Eberharter(Tech. Solutions – Jenbacher)
Email: [email protected]
NameAlex Kibet (Application engineering leader)
Email: [email protected]
Sub Saharan Africa
Head Quarters
NameCorey Honl(Tech. Solutions – Waukesha)
Email: [email protected]
LPG for power generation
NameToyin Abegunde(SSA sales head)
Email: [email protected]
NameSunday Olanipon (Sales leader)
Email: [email protected]
NamePeter Ocheibi(Sales leader)
Email: [email protected]
Imagination at work
GE Equipment Financing
David KeeferDirector, GE Power Global Growth Initiatives
June 9th, 2016GE Proprietary Information—Class III (Confidential) Export Controlled—U.S. Government approval is required prior to export from the U.S., re-export from a third country, or release to a foreign national wherever located.
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4
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B+AA-AAA
MENA
E. Europe
LATAM
SSA
Japan
IndiaASEAN
W. EuropeKorea
China
USA
’16 GWH
Sub invst. gradeElectricity Demand % growth rates
~40% of demand growth
BBB+
Low HiSovereign credit risk*
Growth regions have finance risks
* Based on Standard & Poor’s sovereign ratings weight by GDP to derive regional sovereign rating
GE is developing partnerships w/ local & int’l banks to enable financing
Fast growing regions need new financing approaches
Credit ratings are a key hurdle for fast growing emerging markets
Smaller, distributed projects reduce risk in any one project
Equipment loans and leases plus turnkey solution for LPG power (equip + fuel) is a key for C&I customer & developer projects
GE Capital segments going forward
Unique capabilities supporting GE Industrial divisions
Aviation ServicesEnergy
Financial Services
GE Industrial
Finance
#1 global aircraft lessor
~1,600 AC owned & serviced … financing for +225 customers
+85% of fleet powered by GE or CFM engines; average fleet age ~7 years
40+ years in industry
Provide financing solutions to energy industry … ~250 power and water projects
Similar Power & Water footprint … strong project expertise in renewables and thermal generation
30+ years across all sectors
Financing for GE Industrial customers and needs
Healthcare… Provide financing for over 3,000 GE Healthcare customers
Working Capital Solutions … optimizing the GE balance sheet
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GE Industrial Finance
Working Capital
Solutions
GE balance sheet
optimization
GE Industrial Financing Solutions
HealthcareEquipment
Finance
GE Industrial
Equipment & GE Capex
GE Healthcare
Equipment
Philosophical shift to pure GE captive
$20B $2B Building…
New
Customized Financing Solutions for GE Customers
Enable GE Distributed Power Sales
A Team Dedicated to GE Distributed Power
Key Focus
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3
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Customer benefits of financingImproved cash management• Avoid large capital outlays
• Re-invest cash into your business
• Reach cash flow positive sooner
• Lower monthly payments
Increased flexibility and convenience
• Defer equipment purchase decisions
• Mid-Term purchase options
• Flexible options at end-of-term (upgrade, purchase, return)
Loans
Leases
Minimize asset risk• Ability to match equipment usage to contracts• Avoid time intensive and costly remarketing activities
• Limit risk of used equipment value fluctuations
Simplified payments• Combine equipment & maintenance into one payment
• Structure payments to match your cash flow
• Fixed rate payments for easy, predictable budgeting
Well-tested in developed markets, developing capability in emerging markets
Current GE Emerging Market Equipment Financing Capability
Export credit agency loans US EXIM OeKB EGAP Others
Deal specific financing support
Developing programmatic equipment financing with local & international partners Projects ≤$30MM… leases, loans, progress payments Standardized approach, terms & conditions Fast approvals for qualified customers Total solution financing… equip., storage, etc.
Available today
Under development
✓
✓
LPG Power Generation EXIM Financing for Nigeria
US EXIM Terms
US EXIM available
LPG capable units
GE delegated authority enables quick decisions
80% loan for qualifying customers up to $10MM
5 years terms
Fixed or floating rates vs. LIBOR
US$ loans
Customer or developer financing available
Select Approval Criteria
Financing US-made product
3 years audited financials orlocal bank guarantee
Profitable operations
Current creditor reference
EBITDA / debt service ≥ 150%
Net cash from ops / debt service ≥ 1:1 ratio
Summary
GE Capital has reorganized to focus exclusively on providing
captive equipment loans and leases to GE customers
Providing financing to emerging markets is a key focus
GE Distributed Power is working with local & international
lenders and export credit agencies (ECAs) to provide attractive
financing
ECA support is available today to qualifying customers and
developers
Total solution for Nigeria… equipment + fuel supply +
financing is our goal
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LPG AVAILABILITY AND PPMC INITIATIVES
ON MARKET EXPANSION
A PRESENTATION SUBMITTED BY
MANAGER, LPG DEPARTMENT
ATGENERAL ELECTRIC LPG TO POWER CONFERENCE
JUNE, 2016
BRIEF ON LPG MARKET EXPANSION-GREEN HOUSE REDUCTION IN NIGERIAAND CARBON CREDIT EARNINGS
Liquified Petroleum Gas (LPG), a hydrocarbon consist basically of Propane and Butane
Sources of LPG; Refineries, Other major Oil producing companies
Gas reserves is 187 trillion cubic meters. (DPR)
Oil reserve is 31.81 billion barrels. (DPR)
Population – 168 million (NPC) largest in Africa.
Large Nigeria population and its natural resources are strong assets.
Nigeria soonest shall be a major gas nation and a hub for LP Gas trading in West African sub-region.
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LPG PRODUCTION AND SUPPLY
PRODUCER PRODUCTION
(MT)DOMESTIC
ALLOCATION
(MT)
CONSUMPTION
FOR YEAR 2015
(MT)
GAP IN CONSUMPTION TO
AVAILABLE QUANTITY (MT)
NNPC REFINERIES
CHEVRON ESCRAVOS NGL
EXXON MOBIL OSO NGL PLANT
NLNG BONNY
NPDCOTHERS
70,000
600,000
1,040,000
1,200,000
240,000
62,500
NIL
350,000
250,000
69,000
TOTAL 3,150,00 731,500 400,000 331,500
45.32% OF AVALIABLE QTY IS A HUGE MARKET POTENTIAL TO EXPLORE FOR JOB AND WEALTH CREATION IN TERMS OF MANPOWER AND INFRASTRUCTURE
LPG VALUE CHAIN: SEGMENTATION
6/9/2016
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Refineries
Import
Mobil
Chevron
Refilling
Plants
CONSUMERS
PPMC
Storage
Private
Depots
Butanization
DepotsCoastal
StorageNLNG
E
X
P
O
R
T
26 million
households
targeted for
conversion
Production & supply InfrastructureConsumers
Storage Capacity (MT)
• NNPC 41,980
• NAVGAS 8,000
• NIPCO 4,500
• SAHARA 1,000
• AP 840
• TOTAL 1,200
• OANDO 270
Total capacity 58,000MT
300 No of registered LPG marketers and 285
functional gas refill plants
Industrial
usersAuto gas stations
DEEPENING LPG MARKET IN NIGERIA
Distribution of LPG Marketers & Butanization Plants in Nigeria
Benue
Kano
Jigawa
Bauchi Gombe
Adamawa
Yobe
Borno
CrossRiver
EbonyiEnugu
Anambra
ImoRivers
Bayelsa
AbiaDelta
Edo
OndoOsun
Oyo
OgunLagos
Ekiti Kogi
Nassarawa
Abuja(FCT)Kwara
Katsina
Kaduna
Plateau
Taraba
Sokoto
Zamfara
Niger
Kebbi
Ibom
1
20 MT
LPG Mkters - 220 approx
20
849 MT
5428 MT
3 130 MT
163 MT
6
246 MT
10581 MT
3184 MT
48 10,677 MT
1
40 MT
1 20 MT
9595 MT
9 446 MT
10 500 MT
1 60 MT
9490 MT
12749 MT
6694 MT 1 40 MT
20
1,190 MT
2153 MT
265 MT
251,260 MT
10 512 MT4 172
MT
Butanization Plants
Gusau
Makurdi
IlorinIbadan
Calabar
100 out of 235 gas plants
are functioning. 8
butanization plants are
rehabilitated and
operational
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INITIATIVES IN LPG MARKET DEVELOPMENT
PPMC Strategic Focus
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Expansion of Apapa coastal facility from 4,000MT to 8,000MT/ Build a dedicated LPG jetty.
Rehabilitation and upgrade of existing LPG filling capacity from 2 to 4 units and install conveyor belts at the plants.
Prioritise the berthing of LPG vessels to improve turnaround of ships at the Lagos receiving jetties.
Promote the introduction of rail and pipeline for a safer and more economical supply of the product .
Government involvement on migration from all other sources of energy to LPG
Green House Reduction and Carbon credit earning
Public Affairs to champion the awareness campaign/education by partnering with NGO's Private sector on LPG handling.
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LPG MARKET DEVELOPMENT
PPMC Strategic Focus
AGENDA SCHEMATIC.. - A : RESIDENTIAL / B: AUTO / C: INDUSTRIAL
OBJECTIVES : DEMOGRAPHY : INTERVENTION : ACTION BY :
TARGET : BENEFITS : STAKEHOLDERS GAIN :
(A) LPG DOMESTICATION
(A) RURAL HOMESHOTELS, SCHOOLS,
HOSPITALS ETC
(C) LPG POWERED EQUIP : FORKLIFTS, GENS ,
(A) JOBS/BETTER HEALTH CARE
(A) MEET UP WITH M.D.G GOALS(A) 2015. .
MILESTONE
(A) GOVERNMENT/PRIVATE SECTOR
(A) MEDIUM/LONG TERM GOVT.
SAVINGS. PRIVATE SECTOR PARADIGM
SHIFT .
AWARENESS
(B) NATIONWIDE TRANSPORTATION
OPTION
(C) I NDUSTRIES
(A)INTRO OF 3KG CYLINDERS
(B)LPG CONVERSION KITS/VEHICLES , ETC
(B) GOVERNMENT/PRIVA TE SECTOR
(C) SURE - P PROG/PRIVATE SECTOR
(C) INDUSTRAIL
USE OF LPG IN
EQUIPMENT/ENER
(B) PMS/AGO SWITCH TO LPG
((B) REDUCE CARBON
EMMISIONS/CHEAP TRASPORT FARES
((C) INDUSTRAIL
GROWTH, EFFICIENT
ENERGY SOURCE
(B) RETURN ON INVESTMENT/
SAVINGS
(C) ADEQUATESUPPLY, CHEAPER ENERGY SOURCE
( B) SUBTITUTE TO PMS/AGO
(C) PROVIDE INDUSTRIES WITH
AVAILABLE AND EFFICIENT
ALTERNATIVE ENERGY SOURCE
(B) 2016MILESTONE
(C)2015MILESTONE
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RESIDENTIAL/COMMERCIAL LPG USE
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Category Sector Usage Benefits Challenges
RESIDENTIAL -Rural Poor -Household cooking-Commercial cooking
-Clean energy provision
-Family income generation
-Create employment
-Better Health/Environ
-Forex savings on LPG import-Income Tax
•Public awareness of LPG
•Initial Cost
•Conversion
•Infrastructure Development
•Regulation/Policy enforcement
•Change resistance
Urban Mid Class
-Household cooking-Commercial cooking
COMMERCIAL -Urban Mid Class
-Restaurants
-Community kitchens
Hospital/Schools/ Hotels
-Cooking-sterilisation
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CATEGORY SECTOR USE BENEFITS CHALLENGES
FUEL FOR LIGHT VEHICLES
PUBLIC AND PRIVATE TRANSPORT
LIGHTBUSES •CHEAPER TRANSPORT
•GOVT IMPORT SAVING
•GOVT FOREX SAVING
•GENERATE BUSINESS /JOBS
•BETTER HEALTH/ENVIRONMENT
•CHEAPER OPERATIONS
•MORE GOVT TAX INCOME
•INITIAL COST
•CONVERSION CHALLENGES
•INFRASTRUCTUREDEVELOPMENT AND COST
•REGULATIONS ENFORCEMENT
•CHANGE RESISTANCE
•POLICY DEVELOPMENT / ENFORCEMENT
LIFTING FORKLIFTS
PUBLIC/PRIVATE TRANSPORT
VEHICLES
PRIVATE TRANSPORT
MOTOR CYCLES
FUEL FOR HEAVY VEHICLES
PRIVATE TRANSPORT
TRUCKS
BUSES
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Category sector Usage BENEFITS CHALLENGES
POWER TURBINES STATE GOVTS•CHEAPER TRANSPORT
•GOVT IMPORT SAVING
•GOVT FOREX SAVING
•GENERATE BUSINESS /JOBS
•BETTER HEALTH/ENVIRONMENT
•CHEAPER OPERATIONS
•MORE GOVT TAX INCOME
•INITIAL COST
•CONVERSION CHALLENGES
•INFRASTRUCTUREDEVELOPMENT AND COST
•REGULATIONS ENFORCEMENT
•CHANGE RESISTANCE
•POLICY DEVELOPMENT / ENFORCEMENT
MICRO TURBINES
PORTSW.HOUSES
PETROCHEMICAL FEED STOCK
AIRCONDITIONING OFFICES
CONSTRAINTS TO LPG MARKET GROWTH
• Low Demand
Subsidy on Kerosene
High cost of LPG and appliances
Safety misconceptions
lack of awareness and education about LPG
Supply and logistics bottlenecks
Unfavourable fiscal regime
o VAT on LPG sales
o High duties on imported LPG equipment
o Excessive Union Taxes and Levies at LPG loading depots
Lack of Technical/Commercial regulations
Absence of incentives for potential investors69
INCREASE LPG UTILIZATION IN NIGERIAAND
BENEFITS• Reduced utilization of Kerosene/complete subsidy removal
• Improved health of the populace
• Clean environment
• Conducive business environment
• Employment generation
• Profitability
• Increase Government revenue
• Meet Millennium Development Goals
• Savings for consumers
• Carbon emission reduction
• Revenues through CER credits70
WAY FORWARD AND CONCLUSION
ISSUES ACTION PARTIES
Market awareness Nationwide campaign: Radio Jingles, TV Adverts, Road shows and Trade fair exhibitions.
FGN/NNPC
Retailinfrastructure
Provide Trucks, Skid Stations, Bobtails, containerized gas filling plants.
Provide cylinders and appliances into the market (3kg, 6kg 9kg and 12.5kg).
FGN/NNPC/
LPG
Stakeholders
LPG supply /pricing Sustainable supply of LPG / appropriate pricing NNPC/GAS PRODUCERS
Taxes/Regulation Remove VAT on domestic LPG/import duties on equipment. FGN
Competing fuel-kerosene
Reduce subsidy on kerosene FGN
Pilot scheme Embark on pilot projects in selected areas NNPC
LPG Investment Collaborate with Financial institutions FGN/stakeholders
Policy Develop a policy and framework to encourage LPG utilization in Domestic, Autogas and Industrial sectors.
FGN
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