Spencer Gulf LNG Pty Ltd (SGLNG) Michael Schaumburg
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Spencer Gulf LNG Pty Ltd (SGLNG) Michael Schaumburg Excellence in Oil and Gas Conference 11 – 12 March, 2014 Project Objectives . Develop a world class LNG facility in southern Australia . Establish a small scale LNG facility at Port Bonython Stage approach leveraging off existing infrastructure - (1 mtpa initially) : Low capital cost (project financing benefits) Recognised technology . Future growth (6 plus mtpa) Project History . Identify/Concept Stage – Completed Multi-criteria port options assessment Concept/Technical Description Report Site selection within port Business Plan Securing site High level environmental site audit Project History (Cont.) . Early Pre-FEED Activities Engagement of Parsons Brinckerhoff Prepared and issued brief for LNG technology providers – Black & Veatch, Air Products, Linde, GE Saloff Brief prepared for maritime sub-consultant – jetty location Project Execution Plan completed Initial discussions with potential gas suppliers Initial discussions with gas pipeline owners Initial discussions with potential LNG offtakers Site Location Future LNG Storage Tank Area Why Port Bonython? . Land : Minimal environmental significance Gently undulating nature Major industrial area – existing major industry Borders existing gas pipeline easement . Deepwater very close to the shoreline . Sheltered waters of Spencer Gulf – vessel loading ops . Small community only – distance of 3.5km . Close to Whyalla skilled workforce . Other major project approvals precedents . Close to Moomba - Adelaide pipeline and SE Aust gas pipeline network. Access to multiple gas basins– Cooper, Otway, Gippsland Existing Gas Transportation Moomba to Adelaide Pipeline LNG Floating Storage Offshore Infrastructure - Jetty Schedule . Major Approvals by mid 2015 . Pre-Feed complete end of 2014 . Feed complete end of 2015 . Financing Phase - January to June 2016 . Construction commences July 2016 . Construction and Commissioning complete early 2018 Project Highlights . Very experienced owner’s team . Parsons Brinckerhoff support/investment/expertise. Low Capital Cost – can accommodate higher gas prices . Scalability (1mtpa to 6mtpa) . Proximity to existing gas transport infrastructure with spare capacity . Existing gas pipelines – spare capacity and/or cost effective capacity increase . Access to multiple gas basins . High approvability : No dredging or reclamations required Low environmental value of the site Precedent approvals for major projects Gas Supply . Seeking HOAs with potential gas suppliers: Non-binding Agreement to work closely together over the next 24 months working up each other’s projects Intent to eventually transform into a long term, formal gas supply agreement prior to FID. Investment Opportunity . Project partner to assist with one or more of the following: Pre-FEED and FEED costs Securing gas supply Debt and equity funding for construction phase Note: All engineering, environmental +project management by Parsons Brinckerhoff “at cost” for small equity stake or cash bonus at FID. Questions? .