Economics of Small Scale LNG Shipping: Application for Indonesia - PowerPoint PPT Presentation

Economics of Small Scale LNG Shipping: Application for Indonesia and SEA Eduardo Perez www.SMALL-LNG.com small-lng.com

When and where to use Small LNG carriers ● Islands ● Seasonal consumption ● Isolated places / expensive pipelines ● Pipeline expansions ● Pre-marketing / new markets ● Inland waterways ● LNG as fuel ● Pollution restrictions ● New disruptive forces: shale gas

SEA: 600 MM ppl / 20,000 islands Source: http://www.openstreetmap.org/#map=4/6.84/123.75&layers=T

Indonesia LNG facilities

LNG Infrastructure to support Small LNG Shipping and Distribution ● Hubs and receiving terminals as market facilitators ● Singapore terminal ● South China Sea carriers 50% of the world LNG ● Asia LNG consumption about 170 MM MTs (2012) ● Major producers in the area small-lng.com

Singapore LNG terminal ● Current capacity: 6 MM MTs per annum ● 3 tanks with capacity for 540,000 cbms LNG ● 4th tank in 2018 will increase it to 11 MM MTpa ● Singapore as a hub for the region ● Terminal can handle 2 Q-Max and 1 "smaller LNG tanker" at a time Source: http://www.power-eng.com/news/2013/04/23/corporate-singapore-lng-terminal-on-track-for-2q-launch-gets-ready-for-global-suppliers.html

Small LNG Challenges & Opportunities ● Local Indonesian cabotage laws ● Indonesia: importer and exporter of LNG ● Exports being reduced + more producers competing ● Competing terminals ● Limited pipelines ● End of fuel subsidies ● Newcomers to the market: Australia

What is a Small LNG Carrier ● From 0 to 40,000 cbms ● Not a standard. Some people will use other ranges. ● -162 degC

Recent Developments in Small Scale Shipping ● Type C tanks and petchem ShipOwners ● Multi-product carriers ● Advances in design bring new flexibility at load and disports. small-lng.com

Small LNG Carriers - world's fleet ● Very small fleet, less than 40 ships worldwide ● Most of them already in a long term deal

Small size LNG shipping market

Existing small LNG routes - Malaysia to Japan : Aman Bintulu (18900), Aman Sendai (18900), Aman Hakata (18800) - Indonesia to Japan : Surya Aki (19400), Surya Satsuma (23000)

Economics of Small LNG Shipping: Domestic vs. international ● Indonesia to Indonesia ○ Local product ○ Local Ship Owners ● Foreign to Indonesia ○ No cabotage law ○ Cheaper logistics ○ International Ship Owners

Three days away from Bali

THANK YOU Eduardo Perez Small-LNG.com eduardo@small-lng.com +34 946 545 481