LNG for bunkering Prospects in Greece and Southeast Europe George Polychroniou Poseidon Med II - Project Manager Executive Director Strategy, Business Development, Administration & IT DEPA – Public Gas Corporation S.A. WHAT’S NEXT: a glance into the future of Shipping Athens, May 2018
Content I. Current LNG Market Conditions II.SSLNG Potentials in Greece and Southeast Europe III. What’s Next?
I. Current LNG Market Conditions II.SSLNG Potentials in Greece and Southeast Europe III. What’s Next?
Global LNG Demand LNG Demand (includes boil-off gas) (Mmtpa) LNG Demand growth 700 under all scenarios 600 500 Non-OECD Asia is the main growth market 400 300 Europe remains the 200 residual market 100 0 LNG demand as 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 transportation fuel grows in importance Africa OECD Asia Non-OECD Asia CIS Europe Latin America Middle East North America Source: IHS Markit 4
LNG for shipping needs smaller scale LNG Infrastructure Large Gas End scale Evapor Pipelin Liqui- explo- Hub user faction shippin ation e ration (NG) g Small Mid End scale scale Evapo- user shippin storag ration (NG) g e Small Truck End scale Evapo- transp user storag ration ort (NG) e Ship bunkeri ng Source: Wartsila
European LNG Infrastructure Most European LNG Terminals provide already loading LNG Truck Stations while in the same time, premises with the capability of LNG bunkering are increasing significantly. 6
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Global Infrastructure for LNG Bunkering 9
I. Current LNG Market Conditions II.SSLNG Potentials in Greece and Southeast Europe III. What’s Next?
Importance of SSLNG Market in Greece Tradition - Greece is a world leader in shipping Strategic geographical position Greece could be an international LNG bunkering & Important internal short sea activity (53 distribution hub in Islands with population >1.000 - 111 ports) SE Europe Need for LNG for other uses (potential for gasification of remote areas) Availability of LNG supply / infrastructure (LNG Terminal – Revithoussa) 11
East Mediterranean: Shipping Traffic 12
Piraeus on Global Map Piraeus is a key port in Global Bunkering 13
SSLNG Infrastructure - Synergies LNG Distribution in small scale to serve: • New Markets for transport(bunkering, road transport) • High density residential areas & large industrial & commercial customers in Western Greece & the Islands without access to Natural Gas Network under • Existing Network New Regions Non interconnected power generation Development plans Main HP System Road Commercial Domestic Marine Fuel Industry Power Plan Transport Sector Sector 14
Poseidon Med II Poseidon Med II is a key European project aiming to take all the necessary steps towards adoption of LNG as marine fuel in the Eastern Mediterranean Sea, while making Greece an international marine bunkering and distribution hub for LNG in South Eastern Europe. 15
Poseidon Med II – Region of Action 3 Countries • Greece • Cyprus • Italy 6 Ports • Piraeus • Patra • Heraklion • Igoumenitsa • Limassol • Venice 16
Activities 01 02 Studies for Ports Designs of Vessels Infrastructure at Revithoussa LNG terminal - - LNG fuelled vessels (newbuilds & retrofit) LNG infrastructure at 5 ports - - LNG bunkering and feeder Synergies - Financial assessment Adaptation of regulatory framework - - Financial tools for investments Environmental impact assessment - 03 04 Regulation Financial 17
Progress on ports & LNG Terminal Infrastructure 18
Progress on Vessels Designs 19
I. Current LNG Market Conditions II.SSLNG Potentials in Greece and Southeast Europe III. What’s Next?
Key conditions for LNG adoption as a bunker fuel LNG main LNG availability infrastructure LNG competitiveness ssLNG supply chain (full cost) 21
LNG Available in Greece since 2000 LNG Volumes unloaded at Revithoussa Terminal { ,000 m 3 2.500 LNG} 2.000 1.500 1.000 500 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Role of Revithoussa Terminal Revythoussa is a small island located in the Saronic Gulf approx. 15miles away from Piraeus Port. Since 1999 it has been operating the main LNG Terminal which is one of the most important infrastructures in Greece. New Infrastructure (Under Development) • To load bunkering/feeder Vessels • Truck Loading Regional role in SE Europe
Current Marine Fuel prices vs LNG prices 12,320 7,172 13,189 7,196 13,471 7,694 13,835 7,443 8,550 7,643 15,047 7,497 13,330 8,300 8,160 7,443 8,200 7,200 MGO ($/MMBtu) IFO 380 ($/MMBtu) LNG ($/MMBtu) 24 Source: S&P Global - Platts
Long Term Price Comparison Last Decade MGO MED LNG SWE MGO MED LNG SWE MGO=18,2% Brent ($/MMBtu) ($/MMBtu) LNG=10,87% Brent Μαϊ -09 Μαϊ -11 Μαϊ -13 Μαϊ -15 Μαϊ -17 Ιαν -08 Σεπ -08 Ιαν -10 Σεπ -10 Ιαν -12 Σεπ -12 Ιαν -14 Σεπ -14 Ιαν -16 Σεπ -16 Ιαν -18 0 50 100 150 Brent ($/bl) Today MGO = 18,76 Brent LNG = 10,45 Brent 25
DEPA’s Strategic Goals • Maintain a leading role in the liberalized competitive domestic market. • Increase the natural gas penetration in the Greek energy market by developing infrastructure projects and by supplying natural gas to regional markets (mainland, Aegean islands). • Become a key player in the broader region – expand trading activities through participation in international infrastructure projects. • Maintain and continuously improve the competitive and sufficiently diversified natural gas supply portfolio. 26
DEPA’s Strategic Planning DEPA aims to develop SSLNG projects, in cooperation with private investors, to supply new users/markets with NG • LNG as marine fuel • LNG/CNG in road transport sector • LNG for Power Generation Plants on Greek Aegean islands • LNG for off grid areas mainly in Western Greece (individual/remote consumers, potential distribution companies), 27
George Polychroniou Executive Director Strategy, Business Development, Administration & IT DEPA – Public Gas Corporation S.A. Tel: +30 210 2701222 E-mail: G.POLYCHRONIOU@depa.gr www.poseidonmedii.eu
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