Developing efficient and reliable LNG infrastructure to support Indonesia s fast-growing energy demand

Transcription

1 Developing efficient and reliable LNG infrastructure to support Indonesia s fast-growing energy demand Gas Indonesia Summit Workshop Wednesday July 12, 2017

2 Welcome Mr. Hari Karyuliarto Chairman Risco Energy 3

3 Challenges and opportunities within the LNG value chain Ken Sauer Managing Director Risco Energy

4 Risco-AG&P: a snapshot The company Leadership RISCO-AG&P is a diversified oil and gas Infrastructure company RISCO-AG&P is backed by a strong Indonesian businessman with a proven track record in owning, managing and operating oil and gas assets in Indonesia Senior experienced oil and gas leadership team World class engineering and fabrication capabilities World class oil and gas operational safety standards and awards Senior LNG leadership team Proven operating and technical capabilities Strong deal origination ability, proprietary and captive deal control In-house design, fabrication, development and operations Unrivalled engineering and fabrication capabilities Strategy Delivering standardized, modular oil and gas infrastructure assets to our customers Aligning with the needs of the power, bunkering, mining, transportation and industrial sectors Focusing on midstream and downstream LNG infrastructure assets Engaging and providing end-user customer support from the early stage of the project s life Investing in logistics, storage and associated infrastructure 4

5 LNG trade 10 years ago BMP = big market players A to B trade 5

6 The LNG story: conventional LNG project development LNG at a glance Super majors as developers, large utilities as off-takers with back-to-back contracts Major player game Highly capital Intensive stick-built construction of liquefaction and receiving terminals Only players with proven track record and very risk averse to project finance Plain vanilla financing structures LNG contracts Long-term oil linked pricing mechanism Major players offering long-term supply agreements with little flexibility or optionality Market contracts very structured and standardized Trades flows of LNG very known Japan, Korea, Taiwan Direct and first-hand negotiations LNG project assessment Historically, very long and complex development stage Medium-to-small players unable to survive the long project development window Costly process for medium and smaller owners and developers Project finance delayed and tough to align with project execution timeline Between FEED and FID, a make-or-break period for many developers Consequence failure in development and building of new value chains 6

7 Indonesia current LNG infrastructure: can t feed stranded demand 7

8 LNG landscape in Indonesia Challenges Demand Small and stranded demand centers Not comfortable with supply consistency Customer reluctant to switch fuel source No access to consumer Infrastructure Poor regional pipeline network No medium or small receiving terminals No current logistics solutions No medium or small storage centers No break-bulk locations in in the region Geography Some demand centers are isolated and have geographic challenges Size of demand points are expensive and not viable for investment and development Midstream and downstream LNG solutions Opportunities Demand Several markets have plans to develop gas IPPs Regional power players fueling gas growth Captive power users switching to gas-fired plants Industrial retail growth Infrastructure Existing large regasification facilities can be easily retrofitted for break-bulk facilities Regional hub and spoke opportunities Maritime bunker shuttle developments to enhance infrastructure tolling scheme Geography Maritime solutions that offer maximum options will be the solution for the region Break-bulk modularized asset developments is the solution for the region 8

9 How do we solve Indonesia s LNG market dilemma? 9

10 Dynamic approaches for developing efficient LNG infrastructure solutions Nancy C. Ballout I VP, Process Operations AG&P Engineering

11 An exciting new approach Providing natural gas or LNG to power generation and other customers currently off-grid Developing fully functional LNG import terminals and the supply chain required to efficiently move LNG to end-users not served by existing LNG networks Using proven technologies to design highly efficient LNG solutions to provide gas to last-mile customers Storage Transport Regasification 11

12 Dynamic new LNG frontier: end-to-end LNG delivery AG&P and Risco Energy cover the entire spectrum of LNG value chain LNG supply and transport Storage and regas infrastructure LNG break-bulking and endcustomer delivery Integration of LNG supply chain Upstream Midstream Downstream LNG suppliers and owners LNG shipping and transportation Traditional EPCs and vendors 12

13 Pragmatic design and engineering Regasification & import terminals Liquefaction & export terminals Owner s engineer Plant operations & support Concept FEED Detailed design Construction engineering Complete engineering lifecycle 13

14 Standardized LNG delivery platforms 14

15 Scalable capacity range 6,000m³ LNG 16,500m³ vessel 4,000m³ vessel Selection of shallow draft barge design and conventional vessel hull design allows for fixed-cost hull construction over a scalable range, typically: Platform 1: 4,000 to 8,000m³ capacity for shallow-water delivery Platform 2: 6,000 to 16,500m³ for open-water delivery Utilizes identical hull design and equipment from 6,000, 7500,10,000 up to 16,500m³ 15

16 Standardized, modular approach Modular regasification unit: Staged development of projects High utilization rates from initial start-up Relocatable assets Optimizes customer/owner cash flow for faster decision-making Lower CAPEX, faster speed to market and minimum sparing requirements Nominal capacity of 125 MMSCFD 16

17 Applying our unique integrated LNG delivery approach India Tolled gas on east coast Philippines LNG import terminal Indonesia LNG supply chain Andhra Pradesh 17

18 How end users benefit from our dynamic approach Eliminates complexity Shortens delivery schedule Provides consistent quality Lowers costs Yields references Builds confidence Reduces environmental impact 18

19 Making it easier and commercially compelling for customers to switch to LNG 19

20 Developing unique energy solutions to directly serve industrial end-users Alexandre Hintz Director at PT Power Service Indonesia a company under Risco Energy Group

21 What we have learned Delivery of a full scope had to involve many parties such as solution provider, solution integrator, LNG trader, LNG transporter, investor, operating teams and others Co-ordination challenges and delay by any one party caused clients to suffer Now with Risco Energy and AG&P as a platform, we can seamlessly deliver end-to-end LNG solutions with all the capabilities under one roof 21

22 Key driver of savings: LNG vs diesel price differential Jan 2016 July 2017 References excluding CAPEX: 2 MW base load would generate US$750 K savings per year A fleet of 20 HD dump trucks would generate US$1.3 M savings per year 22

23 Customers have enough to process without having to think.. Feasibility study? Analyzing data and research? How do you learn about the potential to switch to gas as a fuel? Transporting safely and consistently? Which technology to use to switch from diesel to LNG efficiently? Storage and break bulk of LNG? Sourcing and structuring supply? Investment? Licenses and certifications for LNG transport and utilization? Installing, managing and operating equipment? Performance guarantees to meet expected savings and targets? 23

24 Unique approach to take the pain away from early stage support to operation of assets Prepare early stage analysis to understand the feasibility and benefits of the opportunity Work with the customers in obtaining LNG fuel supply Deliver tailored end-to-end solutions and its associated infrastructure to transport LNG safely and consistently Supply and install the appropriate products to utilize LNG on existing diesel equipment Use our licenses and certifications needed for the fuel switch and delivery to the required locations We finance, operate, charter or lease key parts, or all of the value chain to our clients to tailor sustainable financing structures for projects throughout Indonesia 24

25 Mining sector is the take-off platform for LNG distribution to other industries Coal prod Mill/L/Y Mil/L/Y trucks Potential of 210 MMSCFD of LNG supply Most demand centers are in Kalimantan Use mining sector as hub to deliver LNG to smaller scale industries and IPPs in the region 25

26 How do we deliver an alternative fuel? LNG filling station 1. LNG tank module 2. Dispenser module 3. LNG pump module 4. Vaporizer module 5. CTMS, automation 26

27 Our last mile approach to utilize a better energy Proven and existing systems applicable for power generation and heavy duty off-road trucks Systems under development for Indonesian customers: Marine engines Hauling trucks 27

28 Trusted support from the largest local platform Exclusive partnership with UT for R&D and large scale implementation 28

29 Conclusion With current technological improvements, appropriate options can now be delivered cost effectively. Combining all the capabilities under the same roof is the key to integrate the entire value chain 29

30 Questions 30

31