Opportunities for Small Scale LNG Supply Chain in Latin America

1

Youngsam Oh

2013. 7. 17

üü Energy Market Trends & Change in NG DemandsEnergy Market Trends & Change in NG Demands

üü LNG Supply to Island for Power LNG Supply to Island for Power GenerationGeneration

üü LNG bunkering LNG bunkering Scenario Scenario & future & future planplan

üü ConclutionConclution

Contents

üü Energy Market Trends & Change in NG DemandsEnergy Market Trends & Change in NG Demands

üü LNG Supply to Island for Power LNG Supply to Island for Power GenerationGeneration

üü LNG bunkering LNG bunkering Scenario Scenario & future & future planplan

üü ConclutionConclution

Energy Market Trends

Environmental issue = strict regulationEnvironmental issue = strict regulation

초기GASGASExpectation for Shale gasExpectation for Shale gas

Concern in Oil supplyConcern in Oil supply

LNG bunkeringLNG bunkering=Emerging Markets=Emerging Markets. LNG . LNG fueldfueld shipship. Remote place. Remote place. Island bunkering. Island bunkering

3

초기OILOIL

Environmental issue = strict regulationEnvironmental issue = strict regulation LNG bunkeringLNG bunkering=Emerging Markets=Emerging Markets. LNG . LNG fueldfueld shipship. Remote place. Remote place. Island bunkering. Island bunkering. Needs for new biz model . Needs for new biz model

to overcome Economic recessionto overcome Economic recession. Matured . Matured domasticdomastic NG marketNG market

Role of KOGAS

3 LNG Terminal3 LNG Terminal(1 under construction)(1 under construction)

StorageStorage

44

High Pressure Pipe LineHigh Pressure Pipe Line

DistributionDistribution

3 LNG Terminal3 LNG Terminal(1 under construction)(1 under construction)

9 City gas9 City gasCompaniesCompanies

Paradigm Change in LNG Storage

Large scale Large scale LNG storageLNG storage

Small scale StorageSmall scale StorageLNG Tank ContainerLNG Tank Container

5

FSRUFSRU

Medium scaleMedium scaleLNG StorageLNG Storage

초기Natural

Gas

Natural

Gas

Power GenerationPower GenerationIndustryIndustryCity gasCity gas

IslandsIslands

Change in NG Demands

6

초기Natural

Gas

Natural

Gas

Ship fuelShip fuel

Remote areaRemote area

LNG bunkering system

LNG Bunkering Related TechnologyLNG fueled ship

7

DSEC from General Dynamic’s NASSCO shipyard and TOTEDSEC from General Dynamic’s NASSCO shipyard and TOTE

Tanks Fuel system

Engine

Who build the first

Vs.

8

Bunkering Demonstration

Concept of LNG supply to Islands

Backlyung Island(15,000 kW)

Daechung Island(3,550 kW)

Sochung Islnad(2,650 kW)

Hose bunkering (900 m3)

LNG Terminal

Sochung Islnad(2,650 kW)

LNG TankContainer

(50 m3, 2개)

LNG TankContainer

(230 m3, 8개)

170 km

15 km

20 km

Fuel SupplyingFacility

LNG Tank Container

LNG tank

Power Plnt Gas pipeline

9

Fuel cost

Labor cost

Fixed cost

KRW/ kWh

GovernmentSubsidy

0.479$/ kWh

Power generation unit cost by sources0.75 m $

0.5 m $0.4 m $

Background of LNG supply to Islands

O & M

Boiler oil Diesel

50% increasement

10

Nucl

ear

Bitum

inous

Coal

Anth

raci

teC

oal

NG

Heavy

O

il

Land

Fuel cost

Islands

Die

sel

Islands

KR

W/ k

Wh

Power gen. unit cost in Islands

Fuel cost

Data from KEPCO

Status of Power Generation in Islands

Governmentsupport island

Resident No. of PowerGenerator

PowerCapacity

A.V.PoewerGeneration

62 28,415 210 85,630 kW 222 GWh/yr

Loss in Power generation in islands

11

Sales profit(2011)

OperationCost

Loss(62 islands)

0.2 M$ 1.45 m$ 1.25 m$/yr

Loss in Power generation in islands

M KRW

Estimated Unit Cost of Power Gen.

KRW/kW

Wind

PhotoDiesel 15.6% -> 1.7 $/kW

25% -> 1.5 $/kW

by sources

12

Utilization Rate

Data from KEPCO

Utilization rate Order in Power Gen. Cost1 ~ 30

31 ~ 3535~

LNG < CNG < Diesel < Photo < WindLNG < Diesel < CNG < WindLNG < Wind < Diesel < CNG

DaecheongdoDaecheongdo

3,500kW3,500kW

SocheongdoSocheongdo

2,650kW2,650kW

UlleungdoUlleungdo

18,500kW18,500kW

YeonpyeongdoYeonpyeongdo

7,700kW7,700kW

DeokjeokdoDeokjeokdo

2,900kW2,900kW

SeungbongdoSeungbongdo

1,950kW1,950kW

JawoldoJawoldo

1,650kW1,650kW

1515 islandsislands80sets of 80sets of Diesel powerDiesel power

generationsgenerationsIsland Power generation(㎾)

Ulleungdo 18,500

Baengnyeongdo 9,000

Daechungdo 1,850

BaengnyeongdoBaengnyeongdo

9,000kW9,000kW

Island Power Gen. Market in Korea

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ChujadoChujado

4,400kW4,400kW

HeuksandoHeuksando

4,000kW4,000kW

GeomundoGeomundo

3,500kW3,500kWHongdoHongdo

2,350kW2,350kW

ChodoChodo

2,000kW2,000kW

GaeyadoGaeyado

1,500kW1,500kW

WidoWido

2,850kW2,850kW

Daechungdo 1,850

Sochungdo 2,650

Yeonpyeongdo 3,350

Deokjeokdo 2,900

Jawoldo 1,650

Seungbongdo 1,950

Wido 2,850

Hongdo 2,350

Heuksando 4,000

Gageodo 1,050

Chodo 2,000

Geomundo 3,500

Chujado 4,400

Sub total 62,000

LNG Transportation to IslandsTank TruckTank Truck

Cargo ShipCargo Ship

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Tank Tank container trailercontainer trailer

Usage of LNG Tank Container

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Target of Development of LNG Tank Container

ü Mass Transportation of LNG to remote place and storage mean

ü Overcome limitations of Tank Truck LNG Transportation

üNew Features in Transportation and Storage -> New LNG Markets

Maximize storage efficiency with Stacking

LNG Tank Truck vs. Tank Con.

Storage + LorryStorage + Lorry Tank Con.Tank Con.

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초기FeaturesFeatures

üOn site LNG Tankü LNG transferring

üTreatment of BOGü Long LNG transferring timeüDifficulty in Scale up

üNo on site LNG tanksüExchanging Tank Con.

üQuick InstallationüNo LNG transferringüNo BOGüQuick Ready to supplyüEasy to Scale up

20ft IMO Type -B20ft IMO Type -B

Model US-CN-12V-0.9

Fluid LNG

Internal Volume 12,902 ℓ

Storage Volume 11,612 ℓ

Design Pressure 0.9 Mpa G

Operating Pressure 0.6 Mpa G

40ft IMO Type-740ft IMO Type-7

Model US-CN-12V-0.9

Fluid LNG

Internal Volume 26,500 ℓ

Storage Volume 23,850 ℓ

Design Pressure 0.9 Mpa G

Specification of LNG Tank Con.

Operating Pressure 0.6 Mpa G

DesignTemperature

-196℃~40℃

Material

Inner. A240-304

Outer. A240-304

Hyperlite

Insulation CapacityThickness 212mmVolume 8.20㎥

Vacuum Degree 0.05 torr (on Operating)

Code Stamp Register / KGS

Design Pressure 0.9 Mpa G

Operating Pressure 0.6 Mpa G

Design Temperature -196℃~40℃

Material

Inner. A240-304

Outer. A240-304

Hyperlite

Insulation CapacityThickness 217mmVolume 15.5㎥

Vacuum Degree 0.05 torr

Code Stamp Register / KGS17

Steps for small scale LNG supply

초기LNG

TerminalLNG

Terminal 초기LNG

LoadingLNG

Loading

18Remote PlaceRemote Place

초기RemoteMass

Demands

RemoteMass

Demands 초기Road

TransferringRoad

Transferring초기LNG

UnloadingLNG

Unloading

LNG Transportation to Fixed Tank

LNG loadingLNG loading ShippingShipping

Fixed LNG tankFixed LNG tank

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LNG loadingLNG loading ShippingShipping

Wire Crane unloadingWire Crane unloading Side unloadingSide unloading Off loading to TankOff loading to Tank

Methods of Unloading Tank Con.

초기FeaturesFeatures üConventional unloading facility

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Reach Stacker Special Forklift

초기ConsCons

초기ProsProsüAvailability : Already developedüConvenience : Well developed

üSafety : Risk in lifting containersüEconomics : High operating cost as well as facility

Crain

Sliding Type Unloading System

초기FeatureFeature üWell designed sliding type tank container unloading system

21

초기ConsCons

초기ProsProsüEconomics : Not expensive to facilitateüSafety : No risk to drop to the groundüConvenience : Quick installation and easy to move

üMaintenance : Moving parts

Steps of Unloading

22

Concept of Sliding Type Unloading

23

Idea for Usage of LNG Tank Con.

초기RemoteDemandsRemoteDemands

Vaporizer

LNG Station using LNG Tank Con.

24

Compressor

초기CNG

VehicleCNG

Vehicle

초기LNG

VehicleLNG

Vehicle

초기LNGShipLNGShip

LNG Station using LNG Tank Con.

Small Scale LNG Supply Chain

DistributedOn site LNG Storage

Villages

Industry A

Industry B

Buildings

Island BIsland A

25

Buildings

Industry B

Villages

BuildingsIsland C

Diesel $1.6/KcalDiesel $1.6/Kcal20ft T.C. $1.8(13% over)20ft T.C. $1.8(13% over)40ft T.C. $1.3(22% save)40ft T.C. $1.3(22% save)Bunker Shuttle $.7(56% save) , 1.5Km3 scaleBunker Shuttle $.7(56% save) , 1.5Km3 scale

Unit shipping costUnit shipping cost

LNG Terminal Ports Power PlantPorts

Cargo Vessel

Scenario to Supply LNG to Island

Initial state

26

Cargo ship

Power Plant

Island

LNG Terminal Tank Container

LNG Terminal Power PlantPorts

Pipe Line

Final state

Scenario to Supply LNG to Island

27

On Shore Small Tank

Bunker shuttle

Power Plant

Island

Tank Container

LNG Terminal

Final step

LNG supplying network using shuttle

Power Plant

Island

Tank ContainerLNG Terminal

28

On Shore Small Tank

Bunker shuttle

Power Plant

Island

Tank ContainerContainer shuttle

ContainerTerminal

Plan for LNG Bunkering in Korea

LNG fueled ship

Incheon LNG Terminal

Pyungtaeck LNG Terminal

SamchuckLNG

Terminal

Island power generation

29

Off shore LNG Terminal & Ship to Ship Bunkering

Bunkering Ship

초기JejuIslandJejuIsland

Pyungtaeck LNG Terminal

TongyoungLNG Terminal

Conclusion

Cargo Vessel

Sabin Pass

30

Ciudad Pemex

Cargo Vessel

Covenas

Bunker shuttle

Small Scale LNG Supply Chain

31