Project Overview Sapia

Transcription

1 Project Overview Sapia 12 November 2013 LPG import and storage terminal cleaner energy reliable supply modular design affordable energy job creation local suppliers environmental and health benefits promotion of SMMEs safety in design

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3 Why Liquefied Petroleum Gas (LPG)? Cleaner form of energy than electricity generated from coal; LPG derived CO2 emissions are only 20% of coal powered electricity emissions More efficient than electricity for household heating or cooking and industrial thermal applications. LPG infrastructure cheaper than power infrastructure <10% of the cost per MW power plant installed LPG use in Low Income Households is both safer and healthier than alternative fuels LPG more affordable than electricity 25% of actual heat generated or input into fossil fired power stations ever reaches the end user for domestic thermal use

4 Project Motivators In line with Government (DOE) Energy Strategy to change energy mix and supply LPG to all sectors of society, targeting LIH 1.5 million tons per annum LPG will replace MW electricity generation equivalent The Capex of LPG infrastructure (R/MW) less than 10% that of a power station Shortfall in production capacity by WC refineries Road transport of LPG from upcountry not economical and unsafe LPG availability from inland refineries not sustainable due to substantial LPG market growth in northern regions Provides strategic buffer storage in Western Cape current storage for LPG less than 3 days. Phase 1 - will increase storage days to 14 days

5 Project Benefits Addressing LPG shortages in Western Cape and further afield Secure LPG supply to critical industries, small business, hospitality industry, households Job creation and job preservation Breaking current LPG supply chain monopolies enabling wider participation and new entrant SMME s Reliable affordable LPG supply to Low Income Households Procurement from and development of local suppliers, in synergy with Saldanha Industrial Development Zone strategy Enabling business growth Assistance with downstream infrastructure development for LPG through Sunrise Energy CSI and Enterprise Development Programs.

6 Current Western Cape Consumption Unhealthy energy mix in South Africa Per capita consumption in South Africa Domestic Sector (excluding industries) versus other countries: Country kg/capita/annum South Africa 3-6 Brazil 40 Malaysia 65 Australia 157 Currently a supply-limited market with scope for expansion Due to unreliable LPG supply, consumers have switched back to less desirable forms of domestic energy

7 Supply and Demand

8 Supply and Demand 2015/2016

9 Supply versus Demand in Western Cape Shortfall of ton/month predicted by year 2015

10 Overview of the Sunrise Facilities Phase 1 to meet current market: ton storage comprising 5off 7m x 60m mounded storage bullets Phase 2 and 3 modular expansion matching market growth (5 500 ton each, total tons storage) with total throughput capacity up to tons/month LPG mixture, Commercial Propane, Commercial Butane in accordance with SANS 1774:2007 Marine design vessel maximum DTW pressurized/ semi refrigerated/refrigerated vessels, LoA 97m 174m, with draft 6.0 to 10.4 meters. Marine terminal based on a MBM in Big Bay Saldanha. Provision for Rail and Road dispatch and direct cylinder filling. Phase 1 is a R700m project Terminal Operator allowing open access to third parties for the import and storage of LPG

11 Process Schematic WITHIN TNPA/PORT BOUNDARIES WITHIN SUNRISE ENERGY BOUNDARIES MBM (Multi Buoy Mooring) Flexible Hose Beach Valve Station Located at: X = m Y = m Total Capacity of LPG Bullets = tons Total Throughput Capacity = tons/ month Rail Loading Gantries (3) PLEM (Pipeline End Manifold) Subsea pipeline = 3 155m Road Loading Gantries (6) Overland pipeline (within TNPA boundaries) = 1 522m Berth Area of MBM Defined as the area between the fixed mooring points (i.e. between the Mooring Buoy Sinker Blocks)(Green rectangle below) Area = 281m x 117m = m 2 Pipeline (within Sunrise Energy boundaries) = 534 m LPG Cylinder Filling Facility Provision for pipeline to Bulk Consumers

12 Plot Plan

13 Site Layout

14 Marine MBM

15 Marine Scope MBM located off the iron ore jetty in Big Bay 4 x 500 tons gravity moorings (each with 10 x 50ton blocks) and heavy anchor chains 4 x mooring buoys urethane foam filled Counter weights Special flexible LPG offloading hose Pipeline End Manifold (PLEM) 3 000m x 12 concrete weight coated subsea pipeline rated at 25 bar. Corrosion protection special coatings, wrapping, sacrificial anodes with 40 year life Navigational lights and pipeline marker buoys

16 Mounded Storage Bullets 5 off 7m diameter x 60m long mounded bullets, design pressure -0.7 bar to 16 bar, -40 o C to +40 o C To be fabricated by Elgin Engineering in Saldanha Bay (on property adjacent to Sunrise Energy site)

17 Bullet Design

18 LPG Mounded Storage

19 LPG Mounded Storage

20 Onshore Facilities Blending to specification, vessel-to-vessel transfers, dispatch utilising common transfer pumps Ethyl mercaptan odourant dosing 3 x LPG road loading bays, expandable to 6 bays Facility design allowing for export via road, rail or direct pipeline transfers to third parties via custody metering systems (to local industry or 3 rd party distributors) Third party bottling facilities Integrated fire and gas detection and fire protection systems Fully automated ESD safety systems Auxiliary systems, utilities and buildings

21 Project Status All necessary regulatory approvals achieved, including the TNPA Section 56 Terminal Operators Agreement, signed May 2013 Award of the Engineering, Procurement and Construction Management (EPCM) contract to Jacobs Matasis Approved for Detailed Design drawings approved after a third party Hazop was completed Detailed design in progress with RFQs for major contracts to be issued in the next six months Award of Marine Engineering contract to PRDW in July 2013 Award of Bullet Fabrication contract to Elgin Engineering in August 2013 Site geographical survey completed; marine survey in progress Earthworks and ground clearance to commence end 2013

22 Project Level 1 Schedule Phase Phase 2 Phase 1 All Phases Year Quarter Regulatory EIA EIR Land Facilities EIR Marine MHI NERSA TNPA Sect 56 TOA Land Rezoning Full Scope Facilities BFS Detail Design Order Long Lead Items Construction Commissioning Operational Next Bullet Battery Additional Road Loading Gantries Next 5000t Bullet Battery

23 Job Creation Sunrise Energy Project Manpower Buildup Operation Phase Fabrication & Construction Phase Engineering & Procurement Phase Total Manpower & Jobs from Project Date

24 LPG MRGP In a regulated market the true import parity for LPG MRGP pricing is a vital step towards the rollout of LPG a delay in decision will hinder the development of LPG import terminals projects LPG importation and storage infrastructure differs significantly from the liquid fuels infrastructure. Capex between 6 to 8 times more per cubic meter storage than a gasoline/diesel storage terminal Ship parcel sizes are 4 to 6 times smaller and shipping costs are more expensive need to optimise LPG import terminals for economic parcel size. LPG to the end customers i.e. light industrial and domestic consumers must be competitive and more affordable that electricity LPG import terminals to alleviate supply shortfall is only part of the equation massive rollout of LPG cylinders and distributed cylinder filling facilities are necessary.

25 LPG MRGP cont. Government must realise its far cheaper for government to invest in LPG infrastructure, cylinders etc. than power infrastructure only 10% of the cost per MW installed The Government Gazette of 24 October 2012, no , concludes that the growing demand for LPG can only be met through import terminals. In a regulated pricing environment it s important that the landed cost via LPG import terminals the same as the MRGP refinery gate price in order to foster healthy competition in the open market. A new LPG Importation terminal need a throughput fee of $200/ton or between R R 2100/ton. This is in line with international throughput charges

26 Questions? with sincere appreciation from bringing safe, reliable and cleaner energy to the Western Cape community by utilising local resources and expertise

27 Capacities & Throughputs Development Phases Phase 1 Phase 2 Phase 3 Start of End Phase Start of End Phase Start of End Phase Mid Phase Mid Phase Mid Phase Operation 1 Operation 2 Operation 3 High Growth 2015 to to to 2035 Expected Grouwth 2015 to to >2035 >2035 to >2035 Throughput Capacities Total Annual Throughput [ton/annum] Total Monthly Throughput [ton/month] No of 1000t Storage Bullets [No.] Average Parcel Volume Offloaded [m3] Max Ship Offloading Rate [m3/hr] Ships per Month [No./month] Tons Dispatched by Road tankers [tons/month] Road Tankers per Month [No./month] Road Tankers per Day [No./day] No of Road Loading Gantries [No.] Tons Dispatched by Rail tankers [tons/month] Rail Tankers per Month [No./month] Rail Tankers per Day [No./day] No of Rail Loading Gantries [No.]

28 Bullets Fabrication

29 Commercial Operating Model Commercial Agreements 0-2 weeks no throughput storage charge Throughput Agreement Throughput charge based on R/ton moved through facility: Early Bird Discount Volume Customer Discount 2-4 weeks throughput storage charge at Rate weeks throughput storage charge at Rate 2 Dedicated Storage Only medium/long term rental agreements Based on prior arrangement per phase Fixed size monthly storage space rental Not dependent on actual usage >6 weeks Rate 3 generally disallowed special arrangement only