CoTE Presentation LNG to Power Stornoway s Renard Mine Canada LNG Export 2015 May 19, 2015
Agenda SNC-Lavalin / Kentz Brief overview Global LNG presence LNG in Canada Stornoway Diamond Corporation Brief overview Renard Diamond Mine LNG / Gas options Achievements Upcoming events 0750-TP07/May 2015 2
SNC-Lavalin is Founded in 1911 World class engineering & construction firm, and a major player in the ownership of infrastructure Ranked by ENR among Top 10 Global Design Firms Some 40,000* employees executing projects in more than 100 countries Permanent offices in more than 50 countries Annual revenues 2014: CA$ 8.2 B Listed on the Toronto Stock Exchange * includes newly acquired Kentz Corporation Limited 0750-TP07/May 2015 3 well established
Long History, Strong Legacy Expanded Internationally SNC and Lavalin Merged 1911 1986 Founded in Canada 1921 Public Company on Toronto Stock Exchange 1991 SNCL acquired Kentz, becoming Tier 1 EPC provider 1919 Founded in Ireland First International Project in Saudi Arabia 1977 1982-87 Operations expanded to South Africa, Australia, Caribbean Public Company on London Stock Exchange 2008 2014 Acquired Valerus, provider of gas processing, compression and production solutions 2014 0750-TP07/May 2015 4
SNC-Lavalin/Kentz s Operating Offices 0750-TP07/May 2015 5
Global LNG Construction & Commissioning footprint 0750-TP07/May 2015 6
Liquefied Natural Gas (LNG) Terminal CANAPORT LNG Location: Saint John, New Brunswick, Canada Capacity: 1 billion SCFD Completion: 2009 Services: EPC Onshore portion (JV) Scope / Units: Three (3) gas compressors Jetty topside & unloading arms Three (3) LNG tanks (full containment) Regasification facilities 0750-TP07/May 2015 7
8 Polskie Liquefied Natural Gas Terminal POLSKIE LNG Location: Swinoujscie, Poland Completion: 2010 Services: FEED Lump Sum Description: Open Rack Vaporizers (ORVs) and Submerged Combustion Vaporizers (SCVs) Two (2) 160,000 m 3 LNG tanks Nitrogen Injection capability Can accommodate ships up to 216,000 m 3 LNG 0750-TP07/May 2015 8
Stornoway Diamond Corporation Leading Canadian diamond exploration and development company Listed on the TSX (SWY) Headquartered in Montreal, QC Flagship asset 100% of Renard Diamond Project, Quebec s first diamond mine The only Canadian diamond mine accessible year-round by road 0750-TP07/May 2015 9
Renard Mine Located in the James Bay region, approx. 400 km north of Chibougamau (800 km north of Montreal) Combined open pit and underground mine plan Nameplate capacity: 2.2 mtpa (1.6 m carats/year) Overall investment: 811 M CA$ SNC-Lavalin to coordinate the EPCM activities Impacts and Benefits Agreement (Mecheshoo Agreement) signed with the Crees of Eeyou Itshee Partnership agreement signed with local communities of Chibougamau and Chapais 0750-TP07/May 2015 10
Renard Mine : Timeline Renard Mine Road: Completed August 2013 Start of Construction: July 2014 First Concrete: April 7, 2015 Power Plant Building Completion: Q4-2015 Power Plant Energization: Q3-2016 Plant Commissioning: Q4-2016 Plant Commercial Production: Q2-2017 Plant Full Production: Summer 2017 0750-TP07/May 2015 11
Renard Mine : Power Option The ore processing plant and auxiliary systems require approximately 10 MW of power Among the options available to Stornoway: Power from the grid Diesel engine Gas engine Power from the grid was soon rejected due to the high cost of installing a 150 km transmission line for a single user The traditional Diesel engine option was first retained by Stornoway 0750-TP07/May 2015 12
Renard Mine : LNG / Gas Option In September 2013, Stornoway mandated SNC-Lavalin to undertake a prefeasibility study and in January 2014 a feasibility study to evaluate the possibility and the benefits of using LNG to generate the required Power for the facilities The LNG / Gas option would: Reduce Unit Power Cost by 37% Overall Operating Cost reduction of 7% (8 10 M$/year) Diesel consumption reduction by 80% Greenhouse Emissions reduction by 43% 0750-TP07/May 2015 13
Renard Mine : LNG Supply & Transportation Gaz Métro will be the supplier of LNG from its existing and expanded liquefaction facilities in Montreal Transportation of the LNG with a fleet of LNG Trailers 0750-TP07/May 2015 14
Renard Mine : LNG Storage & Distribution Client selected to have a total of 1800 m3 storage capacity, split into 6 pressurized bullets LNG is vaporized through a glycol vaporizer Natural Gas is distributed to the Power Generation Building as well as other buildings for heating 0750-TP07/May 2015 15
Renard Mine : Power Generation Seven 2.1 MW rated gas gen-sets, providing sufficient power generation capacity for the project s normal operating specification of 9.5 MW Significant energy is recovered from gen-set s exhaust and jacket to heat the underground mine ventilation air 0750-TP07/May 2015 16
Renard Mine : Power Generation 0750-TP07/May 2015 17
Achievements Application of a relatively new set of regulations CSA Z276-2015 LNG Production Storage and Handling to small or medium scale facilities Distance between equipment, between equipment and accommodation facilities, away from blast zone potential fall out Impact following a potential release 0750-TP07/May 2015 18
Achievements Long distance LNG transportation 365 days per year Driving on Highways, Regional Roads and Mine Roads Planning is to have distinct driver crews for highway and off-road In the case of an eventual LNG spill, there would be limited impact on fauna and flora compared to diesel 0750-TP07/May 2015 19
Achievements Harsh environment design and construction Maximum prefabrication due to high cost for on-site fabrication Transportation of pre-fab assembly, equipment and materials by truck to site 0750-TP07/May 2015 20
Upcoming Events Communication with communities along the LNG Route Commissioning and powering of the facilities Training on LNG handling 0750-TP07/May 2015 21