LNG BUNKERS: the future is here 4th November 2015
LNG POWERED FERRIES Cepsa Título de la presentación Fecha 2
Global Bunker Markets by Region Rotterdam 12,2 Los Angeles 3,5 Houston 4,2 Canary Islands 2,9 Antwerp 4,7 Gibraltar Strait 8 Pireus 3,2 Hong Kong 5,5 Busan 6,9 Panama 3,5 Fujairah 10 Singapore 42,7
Sulphur Emissions Control Stricter sulphur emission limits expected in 2015 (ECAs) and 2020 in EU and globally? % sulphur max GLOBAL 3,5% Pending on feasibility review in 2016 ECAs 0,1% 0,5% Emission control areas worldwide (ECAs) Baltic sea US and Canada Japan North sea Japan In force Considered Malacca South Korea Australia Cepsa Título de la presentación Fecha Despite strong fundamentals, doubts on timely implementation of MARPOL 4
FUELLING ALTERNATIVES FO + SCRUBBER MGO LNG
FUELLING ALTERNATIVES FO + SCRUBBER MGO LNG
FUELLING ALTERNATIVES FO + SCRUBBER MGO LNG SUPPLY SECURITY ENVIRONMENT 7
FUELLING ALTERNATIVES FO + SCRUBBER MGO LNG SUPPLY SECURITY ENVIRONMENT 8
European LNG map LNG PLANTS LNG imports to Europe 3.652 (23,4%) 2.516 (16,1%) 641 (4,1%) Cepsa Título de la presentación Fecha 9 186 (1,2%)
LNG bunkering logistics in Spain LNG Plant Barge bunkering LNG Plant Huelva - LNG small scale - bunkering LNG Plant - semi trailer small scale LNG - bunkering LNG Plant - semi trailers - flexible hose - bunkering
LNG bunkering logistics in Spain LNG Plant Barge bunkering LNG Plant Huelva - LNG small scale - bunkering LNG Plant - semi trailer small scale LNG - bunkering LNG Plant - semi trailers - flexible hose - bunkering
CEPSA delivered First Bunkers ever in Spain, TTS (2012): MS Hoydal at Algeciras 4 hours, 2 trucks, 40 metric tons
REGAS STORAGE TRUCKS- LOADING DISCHARGE BREAK-BULK JETTY RE-LOAD 6
How would fuel prices affect the bunker markets? Main Challenges for LNG to become the reference bunker fuel Cepsa Título de la presentación Fecha 14
How would fuel prices influence the bunker markets BCG Report (2025): LNG s market share between 5 and 27% Base case scenario: 20% LNG LNG Spread FO/GO vs LNG Cepsa Título de la presentación Fecha 15
LNG Challenges to Consider Cash Shortage Space limitations Who invests first? Regulations Lack of infrastructure Training Cepsa Título de la presentación Fecha 16
How to face these Challenges Through a Strong Coordination and Cooperation between all stakeholders: i. To climb faster the learning curve reducing costs ii. But each Company/Stakeholder assuming full responsibility for their bussiness Risks 17 17
Port Authorities, Institutions LNG Supplier LNG Bunker Fuel STAKEHOLDERS: shared Target own risks. Shipowner Shipyard Engineering, Manufacturer, Classification Instituto Marítimo Español www.ime.es Collaboration = Global Success
Added Value by LNG Bunkers Suppliers Supply guarantee through a diversified portfolio of LNG Willing to assume their own risk PRICE RISK Cepsa Título de la presentación Fecha 19 19
Natural Gas MarketTrend LNG is gaining: i. Liquidity ii. Flexibility Our Forecast: A sustained price convergence for the 3 Basins in the world LNG setting the marginal price in the international markets 20
Conclusions LNG as a competitive shipping fuel and outstanding as the most environmentally friendly among all fossil fuels Investment in LNG infrastructures onshore mostly achieved in Europe LNG bunkers Suppliers: key players for ship owners to take FIDs (in LNG powered vessels) Increasing weight of LNG in the international markets
THANK YOU Juan Carbayo Puig Risk & Markets Director Cepsa Gas Comercializadora juan.carbayo@cepsa.com +34 683 670 608