Providing LNG Supply and Bunkering Solutions USCG Sector Delaware - - PowerPoint PPT Presentation

Providing LNG Supply and Bunkering Solutions

USCG Sector Delaware Bay LNG Bunkering Workshop Margaret Kaigh Doyle

AGENDA

• LNG as Marine Fuel - Why, When, Who
• What is Small Scale LNG
• Developing Infrastructure to support LNG as

Fuel

• Small Scale LNG in Jacksonville, Florida
• The Talleyrand Model – Applicability to the

Northeast

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LNG AS MARINE FUEL DRIVEN BY ECONOMIC AND REGULATORY FORCES

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Fuel Cost Spread Emissions Regulation

Shift to LNG as Marine Fuel

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• The Baltic Sea, the North

Sea, the English Channel, and the coastline of North America are Emission Control Areas (ECAs) where special emission limits apply.

• In October 2016. IMO

members adopted a reduced maximum of 0.5%

• f sulphur content in

marine fuels by 2020.

• Until that deadline, ships

are allowed to use marine fuels with up to 3.50% sulfur which is the current global cap.

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• Technical/Space

challenges

• High opex
• Effluent
• HFO scarce in the

future

• Low capex

compared to newbuild

• Zero capex
• Need scrubbers to

meet NOX Tier III requirements

• Fuel availability
• High opex

Risks

• Infrastructure
• High capex
• More

containment space needed

LNG MGO SCRUBBERS + HFO

Three Options for ECA Compliance

• Low opex
• Meets SOX,

particulate and NOX Tier III requirements

Fixed Pricing

LNG o

• ffers P

Price Assu Assurance Throughout V Value C Chain

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WHO IS BULLISH ON LNG ?

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Fuel Cost Spread Emissions Regulation

• Lloyd’s Register, predicts there will be 653 LNG-powered ships
• f all types by 2025, including 25 cruise ships. LR also

predicted that LNG will account for 11% of cruise ships built during the period, the highest adoption rate of any type of vessel.

• “DNV GL’s assessment of the existing rules, standards and

guidelines shows that from a legal point of view, there are no remaining major showstoppers for the use of LNG as fuel - both for seagoing vessels and inland waterway vessels – nor for the deployment of LNG bunker facilities,” Martin Layfield, global segment leader of the Gas Value Chain, DNV GL – Oil & Gas.

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• Harvey Gulf International – Currently operating DF
• ffshore vessels
• Tote Maritime – Currently operating DF

Containerships

• BC Ferries – Currently operating DF Ferries
• Transport Desgagne –Taken Delivery of DF Product

Tanker

• Crowley Maritime - Awaiting Delivery of DF

ConRo vessels

• Carnival Cruise Lines – Committed to DF Passenger

Ships

• Matson – Committed to DF Containerships for

Jones Act Fleet

• Pasha Hawaii – Committed to DF Containerships
• AET – Announcement to build DF Aframax Tankers

2017 LNG Fueled Vessels “North American Snapshot”

WHAT IS SMALL SCALE LNG?

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Emissions Regulation

MULTIPLE SUPPLY PATHS AVAILABLE

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Liquefaction LNG Trucking Storage LNG Barge Bunkering Vessel Bunkering Vessel

Supply Point Bunkering Port

LNG Rail Shore to Ship Ship to Ship Ship to Ship Rail/Truck to Ship

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The biggest challenge for the growth of LNG- powered cruising is the rudimentary infrastructure for distributing it at

• ports. “We have to build

it,” Tom Strang, Senior Vice President for Maritime Affairs at Carnival said of an LNG delivery

• infrastructure. “

Travel Weekly, 9/11/16

• The Energy & Minerals Group (EMG) is a private

investment firm with over $15 billion under management.

• EMG targets equity investments of $150 million to $1 billion

in the energy and minerals sectors focused on hard assets that are integral to existing and growing markets.

• Eagle LNG is developing end-to-end LNG solutions

for small-scale export and domestic consumption.

• Eagle LNG Partners is wholly owned by Ferus Natural

Gas Fuels, a portfolio company of the Energy Minerals Group (EMG).

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MAXVILLE In-Service Q2 2017 TALLEYRAND MARINE TERMINAL In-Service Q3 2017 JACKSONVILLE EXPORT FACILITY FERC Permitting

Eagle’s facilities in Florida are strategically located near abundant gas supply, interstate pipelines, transportation hubs and a community receptive to the use of LNG. 1 14

VESSEL LOADING DOCK STORAGE TANK ONE of THREE “TRAINS” TANKER & ISO LOADING

JACKSONVILLE PLANT & TERMINAL – 2019

Liquefaction: 1,650,000 GPD (6,060 m3/d), 550,000 GPD/train Storage Size: 12,000,000 Gallons (45,420 m3)

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MAXVILLE LNG FACILITY

In service: Q2 2017 Initial Liquefaction: 87,000 GPD (330 m3/d) Max Liquefaction: 200,000 GPD (760 m3/d) Storage Size: 1,000,000 Gallons (3,800 m3)

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TALLEYRAND LNG BUNKER DEPOT

In service: Q3 2017 Storage Size: 500,000 Gallons (1,890m3) Scalable Storage Capacity

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A MODEL FOR THE NORTHEAST?

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• In 2016 Volkswagen announced that it would be chartering two

LNG-fueled ships which will replace two of the nine vessels using heavy fuel oil from 2019 onwards.

• These vessels will be used exclusively for its round trip scheme

across the North Atlantic serving the markets of Canada, the USA, Mexico and Europe.

IS THERE ROOM FOR EVERYONE?

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THANK YOU FOR THIS OPPORTUNITY

Margaret Kaigh Doyle margaretdoyle@eaglelng.com 508-889-7747

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Eaglelng.com