Alaska LNG Overview October December 3, 2013 Alaska LNG Project - - PowerPoint PPT Presentation

Alaska LNG Concept Information

Alaska LNG

Overview

October

December 3, 2013

Alaska LNG Concept Information

Project Overview

Project Team

• BP, ConocoPhillips, ExxonMobil and TransCanada are

working together to progress an Alaska LNG project: − 300+ people involved in project planning and design work − Multiple third-party contractors engaged, including Alaskans − Leveraging Denali, APP, and related material ($700M past work) Project Description

• Concept selection work to date:

− Gas treatment plant located on the North Slope − An 800-mile, 42-inch diameter pipeline − Up to 8 compression stations − At least 5 off-take points for in-state gas delivery − Liquefaction plant and marine export terminal located in south-central region − Lead site is Nikiski − Preliminary capital investment: $45-$65B

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Alaska LNG Concept Information

LNG Plant and Marine Terminal Site Selection

• Lead Site – After evaluating more than 20

locations, the Project Team has identified a primarily industrial area near Nikiski.

• The Team has performed considerable technical

work for both the location of the plant as well as the viability of Nikiski for LNG tanker

• perations.
• A Nikiski LNG plant site takes into

consideration a pipeline route that provides access to natural gas for: – Fairbanks – Mat-Su Valley – Anchorage – Kenai Peninsula

• Alaska LNG wants to be a good neighbor.
• Our goal is to lessen impacts and enhance

benefits to the businesses and residents in the area.

Alaska LNG Plant Conceptual Layout

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Alaska LNG Concept Information

Land Access

• Access to land is part of project development.
• Access to land allows further engineering and feasibility studies, including

environmental, geotechnical, soils, groundwater and other research as necessary to confirm the LNG plant and terminal site selection.

• The exact parcels that we want to access are confidential. We do not have a

specific timetable for completing the process.

• We hope that we will be able to reach an arrangement with the landowners in the

areas we are interested in accessing.

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Mark Jennings

Alaska LNG Concept Information Field Studies

• 2013 Summer Field work completed September 2013:

– Cultural Resources: >6,500 acres – Hydrology / Lakes / Fisheries studied: 27 / 17 / 20 – Subsistence and Health Impact Assessments starting this winter (2013/14) – 150 people involved in field studies (60% Alaskans)

• Alaska LNG is now working to answer key technical

questions to reduce uncertainty and continue advancing the project.

• The multi-year field work effort is now underway.
• We are working to complete the 2013 program and are

planning for the 2014 season.

• The primary scope of field work is to analyze existing

environmental conditions along project footprint – Planning, logistics, and permitting to support survey work – Public and agency engagement to support survey work and ongoing project planning

Previous and Current Work

Key project design accomplishments

• Confirmed ability to integrate into existing
• perations
• Completed project design concept, announced

Feb 2013

• Finalized LNG Lead Site
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Alaska LNG Concept Information

Benefits for Alaskans

• A successful Alaska LNG project would

provide a host of economic benefits to Alaskans including: – State revenues – Short and long-term job opportunities – Business and industrial opportunities

• Commercializing North Slope natural gas through the

Alaska LNG Project will provide Alaskans access to a cleaner burning and dependable energy source to supply ongoing in-state energy demand via five off- take points along the pipeline route.

• The off-take points would be decided following

consultation with State officials and local utilities

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Alaska LNG Concept Information

Key Issues, Timing and Next Steps

Key Issues − “Mega-project” challenges (labor, resources, equipment, schedule, etc.) − Uncertainty related to permit timing and scope Next steps − Completing field studies in preparation for regulatory submissions − Winter Field Season 2013/14 − Summer Field Season 2014 − More detailed engineering and design work for an LNG plant, marine export terminal, LNG tanker fleet, a pipeline and a gas treatment plant Project timing − Preliminary engineering and environmental studies within a 3-5 year timeframe (depending on regulatory approvals) − After regulatory approvals are received and funding is secured, final engineering, design, procurement and construction may be completed in 5-6 years

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Alaska LNG Concept Information

Contact Us

• If you have questions or concerns,

please call our Alaska toll-free number

• We will respond to you and put your

name and address in our stakeholder database, which will give you the

• ption to automatically receive project

updates

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Mark Jennings

Alaska LNG

Kenai Peninsula Office 120 Trading Bay Road Suites 310, 320 Kenai, AK 99611 Toll-free number: 855-550-5445

Alaska LNG Concept Information

Additional Information

Alaska LNG

Alaska LNG – Integrated Team

Producing Fields

Lead: BP

Pipelines

Lead: APP

LNG Plant

Lead: ConocoPhillips

ERL Team

Lead: ExxonMobil

Commercial Team

Lead: BP

Concept Team

Lead: ExxonMobil

Management Committee Technical Committee Multimillion Dollar, Four-Company Effort – 125+ Employees, 100+ Contractors

• Joint work commenced March 31, 2012 after completion of the Pt. Thomson Settlement / joint work agreements
• Cooperative effort among the leading North Slope producers and a leading North American pipeline company
• Identified potentially viable LNG project options to monetize ANS natural gas
• Used company strengths, shared information / expertise; built upon past efforts, sought out new ideas

Integration Team

Lead: ExxonMobil

Alaska LNG – Project Concept Description

Gas Treating

• Located at North Slope or Southcentral LNG site
• Remove CO2 and other gases and dispose / use
• Footprint:

150 - 250 acres

• Peak Workforce: 500 - 2,000 people
• Required Steel: 250,000 - 300,000 tons
• Among largest in world

Liquefaction Plant

• Capacity:

15 – 18 million tonnes per annum (MTA) 3 trains (5-6 MTA / train)

• Potential areas: 22 sites assessed in Cook Inlet, Prince

William Sound and other Southcentral sites

• Footprint:

400 - 500 acres

• Peak Workforce:

3,500 - 5,000 people

• Required Steel: 100,000-150,000 tons

Storage / Loading

• LNG Storage Tanks, Terminal
• Dock; 1 - 2 Jetties
• Design based on 15– 20 tankers
• Peak Workforce: 1,000-1,500 people

Estimated Total Cost: $45 – $65+ Billion Peak Construction Workforce: 9,000 – 15,000 jobs Operations Workforce: ~1000 jobs in Alaska

Descriptions and costs are preliminary in nature and subject to change. Cost range excludes inflation.

Pipeline

• Large diameter: 42”- 48” operating at >2,000 psi
• Capacity:

3 - 3.5 billion cubic feet per day

• Length:

~800 miles (similar to TAPS)

• Peak Workforce: 3,500 - 5,000 people
• Required Steel: 600,000 - 1,200,000 tons
• State off-take:

~5 points, 300-350 million cubic feet per day, based on demand

Producing Fields

• ~35 TCF discovered North Slope resource
• Additional exploration potential
• Anchored by Prudhoe Bay and Pt. Thomson with

~20 years supply available

• Use of existing and new North Slope facilities
• Confirmed range of gas blends from PBU/PTU can

generate marketable LNG product

• Peak Workforce:

500 – 1,500 people

GO

LNG Project Operations

Execute:

• Final engineering
• Financing
• Procurement
• Fabricate / Logistics / Construct
• Prepare for Operations

Complete Gov’t / Reg. Issues:

• Secure remaining construction

/ operating permits

• Stakeholder engagement

Implement business structure & agreements Commission / start-up

Alaska LNG – Work Plans / Key Decision Points

Evaluate:

• Range of technically viable
• ptions for major project

components

• Business Structure
• In-state gas / export LNG demand

Screen commercial viability  Viable Technical Option(s) Identified  Government Support  Permits / Land Use Achievable  Potential Commercial Viability

Requirements to Take Next Step:

Progress:

• Preliminary engineering to

refine concept

• Business structure
• Financing plan

Start individual gas / LNG sales / shipping efforts Assess commercial viability  Viable technical option  Government Support  Permits / Land Use Underway  Potential Commercial Viability

Activities

Complete:

• Front-end engineering & design
• Major contract preparation
• Business structure
• Financing arrangements

Solicit Interest of Others Advance Gov’t / Reg. Issues:

• Key permit / land use approvals
• Stakeholder engagement
• Secure DOE Export License

Execute individual gas / LNG sales / shipping agreements Confirm commercial viability  Secure Permits / Land Use / Financing / Key Commercial Agreements  Confirm Commercial Viability  Execute EPC contracts

Peak Staffing: ~300 400 - 500 500 – 1,500 9,000 – 15,000 Cost ($): Tens of Millions Hundreds of Millions Billions Tens of Billions

• Est. Engineering / Technical Duration*:

12 - 18 Months 2 - 3 Years 5 - 6 Years

Concept Selection Pre- FEED FEED

(Front-End Engineering & Design)

EPC

(Engineering, Procurement & Construction) Decision to Build the Project Decision Decision

(Today)

PTU Settlement, Joint Work Agreements

* NOTE: Duration of various phases may be extended by protracted resolution of fiscal terms, permitting and regulatory delays, legal challenges, changes in commodity market outlook, time to secure long-term LNG contracts, labor shortages, material & equipment availability, weather, etc.

GO GO GO

Solicit Interest of Others Establish Government Support and Advance Regulatory Issues:

• Competitive oil tax environment; predictable / durable LNG project fiscal

terms; AGIA Issues

• Assure ability to secure regulatory approvals / permits / land use
• Environmental activities / Technical data collection
• Stakeholder engagement
• File DOE Export License