Floating Liquefaction Project Overview February 2016

Transcription

1 Floating Liquefaction Project Overview February 2016

2 Project Overview Delfin LNG is poised to become the first floating liquefaction project in the United States Location Planned Capacity Brownfield Project LNG Permitting Process Gas Supply n 50 miles off the coast of Cameron Parish, Louisiana in the Gulf of Mexico n Moorings for 4 FLNGVs, each with liquefaction capacity of MTPA n 13 MTPA of aggregate liquefaction capacity (~1.7 Bcf/d); expansion potential to 21 MTPA n Development risk significantly mitigated and costs reduced through repurposing of existing pipeline infrastructure n Streamlined process for LNG regulatory approvals ongoing and expected to be completed in 2H 2016 n Interconnections with major onshore pipelines (e.g., Transcontinental Gas Pipe Line Co., ANR Pipeline Co., Natural Gas Pipeline Company of America, and Tennessee Gas Pipeline) provide diverse access to pipeline-quality U.S. natural gas Project Components n Onshore Compressor Station n UTOS Pipeline Existing 30-mile, 42 -diameter pipeline from Cameron Parish, Louisiana to West Cameron Block 167 Total throughput capacity of 2 Bcf/d (with Phase II compression addition) n HIOS Pipeline (leased) n 66-mile pipeline from West Cameron Block 167 connecting with lateral pipelines to 4 FLNGV moorings in West Cameron Block 327 Four FLNGVs 2

3 Project Components DELFIN ONSHORE FACILITIES UTOS P/L UTOS P/L HIOS P/L Gulf of Mexico FLNGVs LOCATION HIOS P/L WC167 DEEPWATER PORT HI A264 WC 327 3

4 Advantages of Floating Liquefaction Lower Construction Cost Faster to Build Favorable Permitting Regime Advantaged Location Mobile Limited Labor Shortage Risk Commercial Flexibility n Asian shipyard construction yields material cost advantages versus stick-build locations n Savings can potentially amount to hundreds of dollars per ton relative to greenfield onshore facilities n 12 to 18 months shorter than greenfield onshore n Provides commercial benefits and better visibility for potential customers n MARAD / USCG has primary jurisdiction over port; FERC regulates onshore portion n Transparent process with statutory one year period (subject to extension) n DOE non-fta approval process piggybacks MARAD / USCG process, similar to FERC n No local community to impact since 50 miles offshore n No port fees incurred n Avoids congestion along the Gulf Coast and demurrage costs n Local communities support energy infrastructure developments and the accompanying economic stimulus and creation of attractive offshore employment opportunities n FLNGVs can detach and sail away when hurricanes or named storms threaten the port area n Flexibility to pursue most economic market post-initial contract n Construction in a contained, factory-like shipyard prevents cost overruns from labor shortages and lack of infrastructure often experienced in onshore greenfield construction projects n Floating projects offer flexibility on contract duration, pricing index, and the project s take-or-pay component 4

5 Project Highlights ü FLNGV offers lower cost, shorter construction period, environmental and flexibility benefits ü Favorable regulatory regime ü Best-in-class partnerships Bechtel, Enbridge, Genesis ü Brownfield project allows for lower capital costs ü Scalable up to 21 MTPA 5

6 Deepwater Port Layout Note: Artist s rendering of Deepwater Port Layout. 6

7 Access to Gas Supply Delfin LNG has access to all major basins and shale plays through existing pipelines Source: Cheniere Energy. 7

8 Project Partners Partner Experience Leader in the transportation, generation, and distribution of energy in North America, with 65 years of experience and a $35bn market capitalization Project Involvement Oversee construction of onshore and offshore components Assist with permitting/regulatory Manage compression Assist with sourcing of feed gas Global leader in LNG facility construction, responsible for construction of one-third of global LNG capacity Provide EPCIC services for the FLNGVs Provide wrapped guarantee with bonuses and penalties related to output, production, performance, and efficiency of the FLNGV Diversified, midstream energy company $5bn market capitalization and a portfolio of ~1,200 miles of offshore pipelines Owner of HIOS Pipeline Pipeline operator 8

9 Commercial Flexibility Given its low-cost and dynamic business model, Delfin LNG is able to offer flexible terms Contract Duration Pricing Index Delivery Method Fixed Component n years n Henry Hub n Oil-Linked n Commodity Basket n Fixed Price n S Curve n Tolling Model n DES n FOB n 100% take-or-pay n Part take-or-pay, part variable n Capacity reservation model 9

10 Contact us for More Information Dan Werner Chief Opera.ng Officer Delfin LNG, LLC 1100 Louisiana Street, Suite 3550 Houston, TX Tel: