LNG for bunkering Prospects in Greece and Southeast Europe

Transcription

1 LNG for bunkering Prospects in Greece and Southeast Europe George Polychroniou Poseidon Med II - Project Manager Executive Director Strategy, Business Development, Administration & IT DEPA Public Gas Corporation S.A. WHAT S NEXT: a glance into the future of Shipping Athens, May 2018

2 Content I. Current LNG Market Conditions II. SSLNG Potentials in Greece and Southeast Europe III.What s Next?

3 I. Current LNG Market Conditions II. SSLNG Potentials in Greece and Southeast Europe III.What s Next?

4 Global LNG Demand LNG Demand (includes boil-off gas) (Mmtpa) LNG Demand growth under all scenarios Non-OECD Asia is the main growth market Europe remains the residual market 0 Africa OECD Asia Non-OECD Asia CIS Europe Latin America Middle East North America LNG demand as transportation fuel grows in importance Source: IHS Markit 4

5 LNG for shipping needs smaller scale LNG Infrastructure Gas exploration Liquifaction Large scale shippin g Hub Evapor ation Pipelin e End user (NG) Small scale shippin g Mid scale storag e Evaporation End user (NG) Truck transp ort Small scale storag e Evaporation End user (NG) Ship bunkeri ng Source: Wartsila

6 European LNG Infrastructure Most European LNG Terminals provide already loading LNG Truck Stations while in the same time, premises with the capability of LNG bunkering are increasing significantly. 6

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9 9 Global Infrastructure for LNG Bunkering

10 I. Current LNG Market Conditions II.SSLNG Potentials in Greece and Southeast Europe III.What s Next?

11 Importance of SSLNG Market in Greece Tradition - Greece is a world leader in shipping Strategic geographical position Important internal short sea activity (53 Islands with population > ports) Greece could be an international LNG bunkering & distribution hub in SE Europe Need for LNG for other uses (potential for gasification of remote areas) Availability of LNG supply / infrastructure (LNG Terminal Revithoussa) 11

12 12 East Mediterranean: Shipping Traffic

13 Piraeus on Global Map Piraeus is a key port in Global Bunkering 13

14 SSLNG Infrastructure - Synergies LNG Distribution in small scale to serve: New Markets for transport(bunkering, road transport) High density residential areas & large industrial & commercial customers in Western Greece & the Islands without access to Natural Gas Non interconnected power generation plans Existing Network Main HP System Network under Development New Regions Marine Fuel Road Transport Industry Power Plan Commercial Sector Domestic Sector 14

15 Poseidon Med II Poseidon Med II is a key European project aiming to take all the necessary steps towards adoption of LNG as marine fuel in the Eastern Mediterranean Sea, while making Greece an international marine bunkering and distribution hub for LNG in South Eastern Europe. 15

16 Poseidon Med II Region of Action 3 Countries Greece Cyprus Italy 6 Ports Piraeus Patra Heraklion Igoumenitsa Limassol Venice 16

17 Activities 01 Studies for Ports 02 Designs of Vessels Infrastructure at Revithoussa LNG terminal - LNG infrastructure at 5 ports - Adaptation of regulatory framework - Environmental impact assessment - Synergies - LNG fuelled vessels (newbuilds & retrofit) - LNG bunkering and feeder - Financial assessment - Financial tools for investments 03 Regulation 04 Financial 17

18 18 Progress on ports & LNG Terminal Infrastructure

19 19 Progress on Vessels Designs

20 I. Current LNG Market Conditions II. SSLNG Potentials in Greece and Southeast Europe III.What s Next?

21 Key conditions for LNG adoption as a bunker fuel LNG availability LNG main infrastructure LNG competitiveness (full cost) sslng supply chain 21

22 LNG Available in Greece since {,000 m 3 LNG} LNG Volumes unloaded at Revithoussa Terminal

23 Role of Revithoussa Terminal Revythoussa is a small island located in the Saronic Gulf approx. 15miles away from Piraeus Port. Since 1999 it has been operating the main LNG Terminal which is one of the most important infrastructures in Greece. New Infrastructure (Under Development) To load bunkering/feeder Vessels Truck Loading Regional role in SE Europe

24 Current Marine Fuel prices vs LNG prices 12,320 7,172 13,330 7,443 7,200 13,471 7,443 7,497 7,196 13,835 7,643 8,300 15,047 8,160 8,200 13,189 7,694 8,550 MGO ($/MMBtu) IFO 380 ($/MMBtu) LNG ($/MMBtu) 24 Source: S&P Global - Platts

25 Ιαν-08 Σεπ-08 Μαϊ-09 Ιαν-10 Σεπ-10 Μαϊ-11 Ιαν-12 Σεπ-12 Μαϊ-13 Ιαν-14 Σεπ-14 Μαϊ-15 Ιαν-16 Σεπ-16 Μαϊ-17 Ιαν-18 ($/MMBtu) ($/MMBtu) Long Term Price Comparison Last Decade MGO MED LNG SWE MGO MED LNG SWE MGO=18,2% Brent LNG=10,87% Brent Brent ($/bl) Today MGO = 18,76 Brent LNG = 10,45 Brent 25

26 DEPA s Strategic Goals Maintain a leading role in the liberalized competitive domestic market. Increase the natural gas penetration in the Greek energy market by developing infrastructure projects and by supplying natural gas to regional markets (mainland, Aegean islands). Become a key player in the broader region expand trading activities through participation in international infrastructure projects. Maintain and continuously improve the competitive and sufficiently diversified natural gas supply portfolio. 26

27 DEPA s Strategic Planning DEPA aims to develop SSLNG projects, in cooperation with private investors, to supply new users/markets with NG LNG as marine fuel LNG/CNG in road transport sector LNG for Power Generation Plants on Greek Aegean islands LNG for off grid areas mainly in Western Greece (individual/remote consumers, potential distribution companies), 27

28 George Polychroniou Executive Director Strategy, Business Development, Administration & IT DEPA Public Gas Corporation S.A. Tel: