REDUCE EMISSIONS EXPAND POTENTIAL Presentation LNG Fuel Leiv Arne Marhaug Gasnor AS Brussels 17 nov 2011
LNG A CLEAN, COMPETITIVE FUEL. TODAY AND IN THE FUTURE Gasnor is presently doing regular bunkering of 22 ships 1500 bunker operations annually 42.000 transfers of LNG in flexible hoses up to now REDUCE EMISSIONS EXPAND POTENTIAL
GASNOR KEY FACTS Natural gas pioneer established 1989, first gas delivery 1994 small scale LNG 2003 52 employees ISO 9001 and 14001 certified Revenue 2010: 98 mill euro Energy sales 2,4 TWh Profit before tax: 8,5 mill euro Total assets: 155 mill euro * 2010-figures. Euro-figures based on EUR/NOK=8,0 / PAGE 3
A WELL ESTABLISHED INFRASTRUCTURE (IN NORWAY) LNG supply capacity: 300 000 tonnes/year 3 LNG production plants 16 semitrailers LNG 13 semitrailers CNG 30 terminals 2 tankers / PAGE 4
MARKET DEVELOPMENT - NORWAY We will see an increasing number of ships! NOx fund positive contributor Number of ships: Coastal ferries 12 (+4) Offshore Supply Vessels 5 (+7) Coast Guard 3 Freight carriers 3 (+2) Passenger ferries 3 (+2) Coastal tank ships 3 (+1) Total 2011 (2013) 29 (45) / PAGE 5
WE SERVE CUSTOMERS IN THREE MAIN SEGMENTS Industry Transport Pipeline customers Industry, commercial, residential and public buildings. District heating and power generation. / PAGE 6
OWNED BY LEADING ENERGY COMPANIES 20% 41% 14% 7% 14% 4% / PAGE 7
GASNOR STRATEGY: A KEY SUPPLIER OF LNG TO SHIPS IN NORTHERN EUROPE LNG bunkering facilities focus area for Gasnor / PAGE 8
MARKET DRIVERS REDUCE EMISSIONS EXPAND POTENTIAL
INCREASED CONCERNS FOR LOCAL POLLUTION / PAGE 10
IMO REGULATIONS TIME IS RUNNING FAST! / PAGE 11
SOLUTIONS IN ECA Switch to LNG fuel Switch to low sulphure fuel Continue to use HFO / IFO Install exhaust gas scrubbers Still som question mark to technology / PAGE 12
LNG AND OIL TWO DIFFERENT FUELS / PAGE 13
LNG IS THE BEST SOLUTION! SIGNIFICANT ENVIROMENTAL BENEFITS Compared to oil: CO 2 NOx SO 2 Soot/particles -25% -90% -100% -100% Climate Health/vegetation Health/vegetation Health/vegetation LNG is the world s cleanest marine fuel Huge benefits for peoples health and vegatation if LNG replace oil. Considerable CO 2 reduction / PAGE 14
COMPETITIVENESS Dependent on distance and quantity Index or oil link? / PAGE 15
MAIN CHALLENGES REDUCE EMISSIONS EXPAND POTENTIAL
MAIN CHALLENGES LNG SOURCING AND AVAILABILITY INFRASTRUCTURE TERMINALS BUNKERINGSHIPS DISTRIBUTION PRICES COMPETING AGAINST HFO + CLEANING COST / PAGE 17
LNG SOURCING AND AVAILABILITY LNG importterminals Limited number Complicated system Not designed for export Restricted number of slots More dedicated solutions necessary Rotterdam Swinoujscie Snøhvit Zeebrügge Montoir Bilbao Huelva / PAGE 18
PROJECTS UNDER EVALUATION Zeebrugge Open season for jetty and tank expansion Solutions could be in place in cource of 2014 Fluxys (Zeebrugge) Gate (Rotterdam) Gate Terminal startet up Q3 2011 Evaluating a small scale solution Startup could be in 2014 / PAGE 19
SOME BASIC INPUTS FOR CALCULATING TERMINAL CAPASITY What kind of ships are bunkering Total annual comsumption (month/week) Storage capasity onboard Regulary need for bunkering Regulary need for supply (of LNG) 20
SOME FIGURES SMALL TERMINAL Halhjem investment: 3,5 mill Capasity 50 000 tonnes/year (today 25 000 tonnes/year) Estimated lifetime: 20 years Investment cost: 3,5 /Mt (0,25 /MWh) 21
SOME FIGURES LARGER TERMINAL Storage capasity: 20 000 m3 LNG Investment: 80 mill (including bunkering barge/vessel) Output: 340 000 tonnes LNG (Viking Line 20 000 tonnes/year) Expected lifetime: 30 years Investment per MT: 7,8 /Mt (0,56 /MWh) 22
LIMITED OUTPUT FROM IMPORT TERMINALS Large European import terminal Designed for import of LNG to pipeline Restricted number of slots 50 slots/year 8 000 tonnes/slot: 400 000 MT/year 23
MARKET DEVELOPMENT - EUROPE Who will be the first? All types of ship-owners and charterers are looking at LNG Daily requests about LNG as fuel! Who will enter the market as suppliers of LNG as fuel in Europe? All the big distribution companies are evaluating the market No one has taken final step (as Shell has done in US) Probable scenario; Cruise ferries (point-to-point) traffic could come first. Viking Line could be ready in 2013/14. Smaller ships that can be loaded from trucks, nearby terminals could also be first mover (competitive pricing from day one) Boats operating on the rivers in Europe Rush into 2015 for all the rest that operate in ECA s Deep sea when LNG market is more developed and confirmed competitive to HFO (incl cleaning cost) / PAGE 24
A WELL-KNOWN CHALLENGE
ALTERNATIVE USE OF OIL TANKS! A lot will happen in 2012/2013! LNG have all chances to be the preferred fuel! - Starting in ECA s / PAGE 26