CITGO Lake Charles IGCC Project Update Presented at the Gasification Technologies Council Annual Conference October 2001

Transcription

1 CITGO Lake Charles IGCC Project Update Presented at the Gasification Technologies Council Annual Conference October

2 Contents CITGO LCMC OVERVIEW PROJECT STRENGTHS & SYNERGIES PROJECT OVERVIEW PROJECT HIGHLIGHTS PROJECT BENEFITS Q&A 2

3 CITGO LCMC OVERVIEW 3

4 CITGO LCMC OVERVIEW CITGO Lake Charles Manufacturing Complex In operation since the 1940s CITGO Refinery CIT-CON Sixth largest refinery in the US 330,000 BPD (2,000 Acres) Upgraded to process heavy crude (CITGO s hydrogen demand will increase significantly as a result of this upgrade.) Energy expenses are significant cost of manufacturing process 4

5 CITGO LCMC OVERVIEW Diverse range of products Gasoline Petrochemicals Lubricants & Wax Asphalt Future expansion / upgrading plans - IGCC Project will complement 5

6 PROJECT STRENGTHS & SYNGERGIES 6

7 PROJECT STRENGTHS & SYNERGIES Strengths of Sponsors Partnership of TECO Power Services (TPS) and Texaco Power & Gasification (TP&G) Financial strength Project development experience O&M experience Gasification technology experience/provider 7

8 PROJECT STRENGTHS & SYNERGIES Strengths of Host Off-taker CITGO Lake Charles Manufacturing Complex Significant steam load (nominal 2.0 million pounds/hour) Substantial power requirement (100 MW) Major petroleum coke supplier (5,000 T/D) Long term off-taker with plans for expansion Access to abundant source of surface water Convenient access to port, major highways, and rail Favorable industrial zoning 8

9 PROJECT OVERVIEW 9

10 PROJECT OVERVIEW General Overview 670 MW IGCC Cogeneration Plant, CITGO Lake Charles Refinery Gasification block ownership 50% TP&G, 50% TPS Power block ownership 43% TP&G, 43% TPS, 14% CITGO Plant management TP&G (Administration), TPS(O&M Provider) Project financing - permanent non-recourse COD January 2005 Transition Period - June 2004 Merchant power sales to the Entergy grid As-available steam and power sales to CITGO 10

11 PROJECT OVERVIEW Major Suppliers and Off-takers Major Suppliers CITGO 5,000 TPD petroleum coke CITGO 300 1,400 MMBtu/hr refinery fuel gas Sabine River Authority 10,000 GPM raw water Backup Power Entergy Major Off-takers Power Marketers and/or Municipal Utilities -570 MW via Entergy Grid CITGO - HP Steam equivalent to 96 MW CITGO MMlb/hr 250/400 psig average process steam sales CITGO MMSCFD of hydrogen TBA 392 LTPD of sulfur 11

12 PROJECT OVERVIEW Block Flow Diagram ASU (2 Trains) RFG from CITGO * 300-1,400 MMBtu/hr Back Up Boilers (5 Trains) MP Steam to CITGO Oxygen MM lb/hr 5,200 TPD Pet Coke 5,000 TPD Gasification (4 Trains) Syngas Combustion Turbine/HRSG (3 Trains) HP Steam Steam Turbine (3 Trains) Power to CITGO 96 MW Power to Third Party Natural Gas 584 MW * 1,900 MMBtu/hr H2 Shift/ Purification (1 Train) Hydrogen to CITGO MMSCFD * Still under evaluation 12

13 PROJECT HIGHLIGHTS 13

14 PROJECT OVERVIEW & HIGHLIGHTS Commercial Highlights Definitive Agreement negotiations with CITGO in progress 4 major agreements Expected completion December 2001 Power Marketing Strategy Secure PPAs for base load operation R. W. Beck update due October 2001 Discussion with potential power marketers and/or other off-takers October

15 PROJECT OVERVIEW & HIGHLIGHTS Engineering Highlights Preliminary Engineering in Progress February 2002 Bechtel & Fluor both contracted for early preliminary engineering work. One contractor to be selected (October 2001) for completing of frontend engineering package CITGO participating in scope definition and Value Improvement Practices (VIP) along with TPS and Texaco TDC Process Design Package to be completed November 2001 Incorporating lessons learned from recent IGCC startups 15

16 PROJECT OVERVIEW & HIGHLIGHTS Engineering and Operations Highlights Combustion Turbine Update (3-GE 7FA) Finalize technical specification October 2001 Complete commercial negotiation November 2001 Order Definition Meeting December 2001 CT shipping date May 2003 Development of Operation and Maintenance Strategy Developing0 O&M Philosophies TPS/TX developing joint O&M and A&E organization O & M group to be intimately involved in the engineering / design effort. 16

17 PROJECT OVERVIEW & HIGHLIGHTS Regulatory & Environmental Highlights Obtained favorable LPSC ruling (non-utility status) March 2001 Completed Entergy interconnection study June 2000 Completed Entergy facilities study September 2001(expected) Filed Advance Notification for sales tax rebate and property tax abatement July 2001 Environmental Permitting Archeological survey - March 2001 Ground water certification July 2001 Filed air permit - September 2001 File wetland permits (required for site access) October

18 PROJECT BENEFITS 18

19 PROJECT BENEFITS Benefits to CITGO LCMC Outsource major utilities Significant operations cost savings for purchase of critical commodities Long-term off-taker for petroleum coke & RFG Secure power for future LCMC expansion Possible processing of alternative feedstocks Reduce overall plant emissions Opportunity to secure additional products (O 2, N 2, H 2 ) for expanding refinery 19

20 CITGO Lake Charles IGCC Project Update Q&A 20