in NW Europe By: <Author Name>, <Organization> By: - - PowerPoint PPT Presentation

▶
in nw europe
SMART_READER_LITE
LIVE PREVIEW

in NW Europe By: <Author Name>, <Organization> By: - - PowerPoint PPT Presentation

Jan 14, 2023 196 likes •460 views

17 th INTERNATIONAL CONFERENCE & EXHIBITION ON 17 th INTERNATIONAL CONFERENCE & EXHIBITION LIQUEFIED NATURAL GAS (LNG 17) ON LIQUEFIED NATURAL GAS (LNG 17) Zeebrugge LNG terminal: from regas terminal to veritable LNG hub <Title of

slide-1
SLIDE 1

<Title of Presentation> By: <Author Name>, <Organization> <Date>

<Title of Presentation>

By: <Author Name>, <Organization> <Date>

17th INTERNATIONAL CONFERENCE & EXHIBITION ON LIQUEFIED NATURAL GAS (LNG 17)

Zeebrugge LNG terminal: from regas terminal to veritable LNG hub in NW Europe

By: Pieterjan Renier, Fluxys 17 April 2013

17th INTERNATIONAL CONFERENCE & EXHIBITION ON LIQUEFIED NATURAL GAS (LNG 17)

slide-2
SLIDE 2

2

LNG 17 - 20130417

Fluxys: gas infrastructure company for Europe

BBL INTERCONNECTOR TERMINAL GNL DUNKERQUE NEL TENP TRANSITGAS

LNG terminalling Transmission Storage

slide-3
SLIDE 3

LNG 17 - 20130417

3

Zeebrugge LNG terminal: 25 years of operation

  • Reception of LNG carriers from 7 500 m³ to 266 000 m³ (Q-Max)
  • ~1 300 LNG carriers received: ~100 different ships
  • 75 million tonnes LNG unloaded
slide-4
SLIDE 4

At first: regas terminal for the Belgian market …

LNG 17 - 20130417

4

1987 2008 During initial supply contract:

  • Regas terminal as security of

supply instrument for Belgian market

  • 1 terminal user
  • Throughput capacity: 3.4 mt/y
  • Facility acts as attractor for new

gas infrastructure investments 2008

slide-5
SLIDE 5

LNG 17 - 20130417

5

… while developing the Zeebrugge area as key gas landing point

INTERCONNECTOR 1998 To Zeebrugge : 20 bcm/y To UK : 27 bcm/y ZEEBRUGGE BEACH TRADING 1998 LNG TERMINAL 1987 9 bcm/y ZEEPIPE TERMINAL 1993 16 bcm/y

Zeebrugge area: throughput capacity of ~ 50 bcm/y = approximately 10% of border capacity needed to supply Europe

Interconnector pipeline ⇆ United Kingdom Zeepipe from Norwegian gas fields

Fluxys 01.2013

slide-6
SLIDE 6

500 1000 1500 2000 2500 GWh/day

Zeebrugge Beach: attractive trading place providing price index

  • 76 active traders
  • 2012: net traded volume of 752 TWh

6

LNG 17 - 20130417

slide-7
SLIDE 7

2004-2008: open season for open access terminal services

LNG 17 - 20130417

7

  • 3 terminal users
  • First capacity enhancement: doubling

throughput capacity to 6.7 mt/y

slide-8
SLIDE 8

As from 2008: creating an LNG hub for NW Europe

LNG 17 - 20130417

8

2008 2008

  • Optimum take away capacity:

security of supply instrument for NW Europe

  • Developing the terminal as a

versatile tool for our clients Optimum LNG reception flexibility Optimum destination flexibility Reload LNG: ships and tanker trucks Pipe gas throughout NW Europe

slide-9
SLIDE 9

Receiving LNG carriers: anything goes

LNG 17 - 20130417

9

  • Physical mooring: reception of any size LNG carriers: small - standard -

Q-flex - Q-max (7 500 m³ to 266 000 m³ LNG)

  • Contractual set-up: combining long-term contracts with spot deliveries
slide-10
SLIDE 10

LNG 17 - 20130417

Take away capacity from the terminal: ample capacity to all neighbouring countries and systems

 United Kingdom: 27 bcm/year  France, Italy and Spain: 20 bcm/year  Luxembourg: 1.6 bcm/year  Germany and further east: 13 bcm/year  The Netherlands: 11 bcm/year

10

slide-11
SLIDE 11

LNG price spreads: re-export opportunities

LNG 17 - 20130417

11

5 10 15 20 25 $/mmBtu

Japan Spain Belgium US

2010 2011 2012 2013 2009

slide-12
SLIDE 12

12

LNG ship loading: a flurry of destinations

6 4 6 10 25 10 20 30 2008 2009 2010 2011 2012

Ship loadings

LNG 17 - 20130417

slide-13
SLIDE 13

13

LNG transport by road: truck loading service

LNG 17 - 20130417

  • Capacity of 4 000 loadings/year
  • Destinations: The Netherlands, UK,

Germany, Poland > Industrial sites without pipe gas supply > LNG refuelling stations > LNG as fuel for shipping

5 65 316 50 100 150 200 250 300 350 2010 2011 2012

slide-14
SLIDE 14

Developing the Zeebrugge LNG terminal into a hub for small-scale LNG as well

LNG 17 - 20130417

14

500 km

Hamburg Antwerp Amsterdam Le Havre Ghent Rotterdam Dunkirk

LNG as fuel for long-haul trucks: 5 mt/y potential

Fluxys LNG terminal

LNG as bunker fuel: 40 mt/y potential

slide-15
SLIDE 15

LNG as a fuel: environmental benefits

LNG 17 - 20130417

15

  • Immediate impact on carbon

footprint: on average 20% less CO2

  • Immediate impact on health

footprint: > Particulate matter and SOx: negligible > at least 50-60% less NOx

  • Fuel price

Source: ESA

slide-16
SLIDE 16

European Commission: clean fuel strategy propositions

LNG 17 - 20130417

16

  • Ships: LNG refuelling

installations in all 139 maritime and inland ports on the Trans European Core Network (2020-2025)

  • Long haul trucks: LNG

refuelling installations every 400 km along the roads of the Trans European Core Network (2020)

slide-17
SLIDE 17

Shipping: severe sulphur emission standards key driver for changing over to LNG

17

Sulphur Emission Control Area 0.1% as from 2015 in SECA zone

  • Fuel oil: 1-3% S
  • Marine Diesel Oil: 0.001 – 0.5% S
  • LNG: S negligeable

LNG 17 - 20130417

IMO standards included in amendments to Sulphur directive by the European Commission

SECA norm World wide norm

slide-18
SLIDE 18

LNG as fuel for truck transport

If you need LNG

  • US: you will have to liquefy natural gas
  • Europe: you could find it at large scale regas terminals, however
  • Seller’s reference: Asian LNG prices
  • Today’s market is too small to divert cargoes

LNG 17 - 20130417

18

5 10 15 20 25 30 35 40 45 50 Diesel LNG (Europe) LNG (Asia) Fuel Excise duties

Margin … but

  • LNG trucks
  • LNG refuelling station
  • Quid excise tax?
  • Quid LNG price?

$/mmBtu

slide-19
SLIDE 19

LNG vs MGO price: room for market development

LNG 17 - 20130417

19

Margin … but

  • LNG ships
  • LNG bunkering infrastructure
  • Quid regulation?
  • Quid LNG price?

$/mmBtu

5 10 15 20 25 HFO MGO LNG (Europe) LNG (Asia)

HFO and MGO, Rotterdam prices, 03 Apr. 2013

Main challenge: developing downstream LNG infrastructure

slide-20
SLIDE 20

20

LNG 17 - 20130417

LNG trailer Feeder ship Bunker barge Bunker barge Intermediate storage Fluxys LNG terminal Loading of LNG trailers: already available Loading of bunker barges and feeder ships: as from 2015

Cutting through the chicken-and-egg position: Fluxys to invest in downstream LNG chain in Belgium

Fluxys 01.2013

Downstream: a closer look at what is needed

LNG LCNG LNG CNG

slide-21
SLIDE 21

2nd jetty under construction: commissioning 2015

  • Reception of LNG carriers with capacity from

2 000 to 217 000 m³ LNG (including LNG bunker carriers) > Unloading and loading > Ship-to-ship transfers

  • Long-term market for bunker vessel loading developing:

200 berthing slots already sold under long-term contracts

21

LNG 17 - 20130417

2nd jetty

slide-22
SLIDE 22

22

Already supplied with LNG from Zeebrugge: LNG barges

LNG 17 - 20130417

Argonon: LNG powered barge for Deen Shipping Greenstream LNG powered barge dedicated for Shell

slide-23
SLIDE 23

… and LNG refuelling stations (some examples)

23

LNG Europe: Oss (NL) LNG 24: Zwolle (NL)

LNG 17 - 20130417

slide-24
SLIDE 24

24

CONCLUSIONS

  • Zeebrugge LNG terminal: successful metamorphosis into versatile LNG hub

for shippers to be active on the European market > Multi-shipper operation combining long-term contracts with spot deliveries > Optimum reception flexibility > Optimum destination flexibility: pipe gas and LNG

  • LNG as fuel for ships and trucks

> Significant market potential > Zeebrugge LNG terminal is ready > Challenge: developing downstream LNG infrastructure

LNG 17 - 20130417

slide-25
SLIDE 25

25

LNG 17 - 20130417

Pieterjan Renier pieterjan.renier@fluxys.com +32(0)2 282 62 07