Houston Alaska - Alternate site for Natural Gas Liquefaction facility

Transcription

1 Houston Alaska - Alternate site for Natural Gas Liquefaction facility PG DR GS DL & SGT

2 Agenda Introductions Who is Siemens? Titan Plant Expansion Concerns with current plan Alternate Solution Plan Site Advantages & Benefits LNGo HP Micro-liquefaction System Overview Cost Model Next Steps Page 2

3 Siemens Fast Facts Global Powerhouse focusing on electrification, automation, and digitalization Approximately 400,000 employees in 190 Countries (50,000 in US) Projects generated over 800,000 jobs in US alone 100 Siemens employees in Alaska Over $88B in revenue FY16 Almost $24B in revenue from US Siemens is one of the world s largest producers of energy-efficient, resource-saving technologies Leading supplier of systems for power generation and transmission as well as medical diagnosis Innovation is the basis for Siemens success and for over 170 years has heavily invested in technology. $4B spent annually in R&D Operate over 16 separate Corporate Technology (CT) research centers globally Collaborate with 25 principal Universities in the areas of electrification, automation and digitalization Siemens has approximately 60,000 granted patents, hundreds pending and on average file 17 per day! Page 3

4 Depth and Breadth of the Siemens Organization Divisions (report P&L) Power and Gas PG Wind Power and Renewables WP Americas Energy Management 2) Middle East, Russia, CIS 1) Building Technologies Europe, Africa Market Mobility Asia, Australia Digital Factory Healthcare worldwide Process Industries and Drives Separately managed Healthcare Siemens Financial Services Power Generation Services PS EM BT MO DF PD HC SFS Corporate Services Information Technology IT Corporate Supply Chain Management CSCM Global Shared Services GSS Siemens Real Estate SRE Corporate Core Corporate Development CD Governance & Markets 3) GM Legal and Compliance LC Communications and Government Affairs CG Human Resources HR Corporate Technology CT Finance and Controlling FC Managing Board Page 4

5 Siemens Divisions and Business Units Power & Gas PG GT Large Gas Turbines, Generators PG DG Distributed Generation PG SU Steam Turbines PG ES Energy Solutions PG IE Instrumentation & Electrical PG CP Compressors PG-DR Dresser-Rand Energy Management EM MS Medium Voltage & Systems EM LP Low Voltage & Products EM TR Transformers EM HP High Voltage Products EM SG Smart Grid Solutions & Services EM EAEnergy Automation EM TS Transmission Solutions Building Technologies BT CPS Control Products & Systems BT System House Solutions, Service BT Enterprise Building Performance & Sustainability, national accounts, data centers and enterprise security Power Generation Services PS PG Power & Gas PS DGC Distributed Generation & Compressors PS WP Wind Power & Renewables Wind Power & Renewables WP OF Offshore WP ON Onshore Mobility MO RS Rolling Stock (Urban Transport & Mainline Transport) MO RA Rail Automation MO RE Rail Electrification MO ITS Intelligent Traffic Systems MO CS Customer Services Digital Factory DF CP Control Products DF CS Customer Services DF FA Factory Automation DF MC Motion Control Process Industries & Drives PD LD Large Drives PD OM Oil & Gas and Marine PD PA Process Automation PD MD Mechanical Drives PD MT Metals Technologies Healthcare HC IM Imaging & Therapy Systems HC CP Clinical Products HC DX Diagnostics HC CX Customer Solutions SFS COF SFS FIM SFS INS Commercial Finance Financing and Investment Management Insurance Siemens Financial Services SFS PSE Project & Structured Finance Power, Oil & Gas SFS PSH Project and Structured Finance Healthcare and Leveraged Finance SFS PSI Project & Structured Finance Energy Management, Mobility & Industries Page 5 CD Corporate Development, Includes Siemens One and CoC CF Controlling and Finance CG Communications and Government Affairs Corporate Services and Corporate Core CT Siemens Corporate Technology GM Governance and Markets GS Global Services, Includes IT, SRE HR Human Resources LC Legal and Compliance

6 It s true.. we even help The Avengers do their job better! Page 6

7 Titan Plant Expansion Concerns Multiple single points of failure; lacks utility grade reliability and redundancy Delivery Production Site location Page 7

8 Titan Plant Expansion Concerns - Delivery Trucking LNG is an unsustainable and costly option for a long term growth strategy Increase in gas demand = more trucks on the road Requires traveling the most dangerous segments of AK highways Has proven to be a significant safety concerns Titan area is not on the Rail line trucking is its only mode of transportation/delivery Page 8

9 Titan Plant Expansion Concerns - Delivery Hwy Axle load limits may be reduce during spring months Road beds are not constructed for heavy hauling State Funds are needed now to repair and rebuild these roads Houston and Big Lake do not want truck traffic on their roads State DOT designates Burma Road as a future alternate truck route through Big Lake and Houston; currently its a glorified trail Big Lake just completed a round about to block these trucks Potential for IGU to realize unexpected costs later as roads degrade Page 9

10 Titan Plant Expansion Concerns - Production Titan plan will maintain poor, road-centric, supply chain reliability Current expansion plan is for a new 100k gallons of LNG/day facility Current demand is approximately 30k gallons /day which is being met by Titan Excessive campaigning required due to mismatched plant size to initial demand Large plant will be operationally inefficient due to excessive required start/stops Page 10

11 Titan Plant Expansion Concerns- Site Location Adding additional LNG capacity at the same site fails to add diversity in supply chain and reduces reliability Backup plan is trucking LNG from Canada 5 day turn around, 2 drivers per truck Not logistically feasible with current assets Page 11

12 So what s a better plan? Deploy modular micro LNG systems at Houston in order to : Increase reliability & redundancy Diversify supply chain Cost effectively deliver LNG via Railroad Improve road safety Decrease traffic congestion Avoid hidden costs in road upgrades and repairs Improve efficiencies by scaling production to match demand Achieve HB105 goals and reduce PM 2.5 Be operational in about 12 months! Page 12

13 Proposed LNG Plant Site Houston, Alaska, Rail Head & Industrial Park KI- Proposed Houston LNG Site Page 13

14 Houston LNG Rail Service Existing Rail Line to Port Mack Terminates in Houston Titan Unfunded Page 14

15 LNGo System Overview Modular system converting natural gas to liquefied natural gas (LNG) Micro-scale, point of use LNGo LP (Low Pressure) system up to 7,000 GPD (11 tpd) LNGo HP (High Pressure) system up to 30,000 GPD (48 tpd) Liquefaction cycle uses feed gas as fuel*, refrigerant, and liquefied product * If power module is included. LNGo plants are environmentally sound with no flare tower as all tail gas is consumed in the process The modular and compact micro-scale LNG production plant meets national codes and standards Page 15

16 LNGo HP System General Arrangement Primary Compressor module MOS compressor drives efficient process Feed/Flash compressor module MOS compressor drives efficient process Power module 2 x Gensets driven by Siemens Gas 1MW engine consumes purge gas from mole sieve to power unit Process module Delivers up to 30,000 gpd (48 tpd) LNG Control module Houses all controls for system Conditioning module Molecular sieve removes CO 2 and H 2 O. The purge flow, with C 2 and above, is blended into the fuel supply to the Siemens Gas Engine. Page 16

17 LNGo HP System Features and benefits 30,000 gpd production - perfect size for local LNG production and demand Re-deployable (skid mounted and small footprint) Self-powered available - easy to permit Multiple systems allow to operate independently to maximize efficiencies of each system Premier, proven Dresser-Rand / Siemens engineered product technologies Shortest cycle time order to operation (40 weeks for delivery) Multi-market applications Worldwide exceptional service and support Page 17

18 Houston LNG - Plant Site A Modular LNG Plant, built for Alaska s domestic markets, located at Houston, Alaska has strategic financial advantages over all other sites considered. Transportation Advantages Location Advantages Construction Advantages Cost savings to the State Operational Advantages Environmentally Sound Helps Communities throughout Alaska become energy viable Page 18 18

19 Houston LNG - Transportation Advantages Leverage AK Railroad Primary mode of delivery Half the cost of trucking and can achieve even greater economies of scale as volume increases Safer More reliable method of transport over trucking Minimize truck traffic and associated hazards Rail Spur already adjacent to property Rail access to: Fairbanks DoD Facilities Whittier/Seward Ports Nenana Port Secondary Transport option Still have access to Parks and Glenn Highways for emergency backup Page 19

20 Houston LNG - Location Advantages Knikatnu Inc owned 3K acres Light/Heavy Industrial Zoned Coalbed methane present- Estimated 72bcf 12 miles from Enstar pipeline Lower property tax rate On site Rail Access with 180 Car Siding High Voltage Power Lines on Site Future Waste Water Treatment Site Possible Power Plant Site Page 20

21 Houston LNG - Construction Advantages Plant Advantages Modularized plant design results in shorter construction time (40 weeks to deliver) Redeployable design provides flexibility to move assets Scalable, efficient operations, Reduced LNG storage costs using ISO s for storage and rail transport Location Advantages Reduced LNG storage costs using ISO s for storage / rail transport Better ISO (Insurance Service Office) Rating: Titan LNG Location has 8 ISO rating Houston has a 5a ISO rating that means thousands in fire insurance savings Alaska s lowest construction costs/ largest employee community Page 21

22 Houston LNG - Benefits AK Railroad provides Fairbanks and Alaska a virtual pipeline Houston LNG Site can service Alaska s Rail, Sea and Road Communities Page 22

23 Proposed Project Costs Estimate Gas Pipeline Railroad Spur Loading Facility Power Plant LNGo (2 or 3 units) Site Preparation Storage (LNG) Totals Aggressive $ 5,000,000 $ 220,000 $ 2,850,000 $ 4,600,000 $ 36,500,000 $ 2,550,000 $ 2,850,000 $ 76,420,000 Conservative $ 31,200,000 $ 995,000 $ 2,850,000 $ 17,700,000 $ 54,750,000 $ 4,000,000 $ 14,200,000 $ 147,545,000 Cost model driven by assumptions which can result in wide range of estimates. Development and Construction Management are assumed fixed at $21,850,000 can be refined depending on activities performed by IGU or other stakeholders. Page 23

24 Next Steps Work with IGU to: Clarify scope and specific details of LNG plant Review Cost Models for Capital Equipment and Operations to determine burner tip cost Define Acceptable Risk Mitigation Strategies Agree on Growth Strategies Page 24

25 Conclusion Siemens has the expertise and technologies to grow LNG demand in multiple markets to: Continue to improve economies of scale to drive down cost Support remote communities and other industries using LNG not only for heat but also for power Aid in the betterment of all Alaskans by delivering integrated, holistic solutions to meet Alaska s growing energy and fiscal needs Page 25

26 Questions? Kelly M. Laurel Director, Energy and Infrastructure Siemens Government Technologies, Inc Crystal Drive, Suite 700 Arlington, VA Office: Mobile: Page 26