9/22/2011 zeebrugge lng terminal: creating opportunities ... lng...zeebrugge hub: one of the leading...

9/22/2011

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Zeebrugge LNG terminal: creating opportunities in the LNG value chain Pieterjan Renier – 21 September 2011

#01 Fluxys in a nutshell#02 Zeebrugge LNG terminal: market driven development#03 And how we keep on carving out its future

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OVERVIEW OF ACTIVITIES

Transmission

FLUXYS N.V.Fluxys SA.

Hub services

Fluxys EuropeFor Belgian market: 19 bcm/yCross-border: 95 bcm/y LT booked

80 traders62 bcm/y nettraded (2010)

LNG terminalling

StorageTransmission &

LNG terminalling outside Belgium

(Spot market)

700 mcmworkablevolume

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LNG terminalling

Regulated activities100% open accessTariffs approved by regulatorCommercial conditions approved by regulator

Operationalsupport services

for shippers6.7 mt/ythroughput

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OUR VISION: PLAY A KEY ROLE IN DEVELOPING THE INTEGRATING NW EUROPEAN GAS MARKET

NORWEGIAN FIELDS

GOAL: provide suppliers with an efficient system to move natural gas flexibly from any

LUXEMBOURG

UNITED KINGDOM

FIELDS

GERMANY

LNG SOURCES

NETHERLANDS

border point in the NW European gas market to their customersSTRATEGY

> Develop new infrastructure in Belgium to contribute to liquidity and security of supply

> Cooperate with other TSOs outside Belgium and

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FRANCE

outside Belgium and co-invest in new projects or take stakes in existing infrastructure

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Nord Stream

Existing

Under constructionNETRA

Dornum

Emden

GMSL Operational

services& software

BBL (20%)NEL (19%)

Project

Forward flow pipeline

Bidirectional pipeline

Reverse flow project (2014)

ERMOb ilb h

Project (FID)

GateZeebrugge

TransmissionStorage

Intercon-nector (15%)

Dunkerque LNG (25%)

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South Stream Nabucco

Baumgarten

ERM Waidhaus

Überackern

Oltingue

Obergailbach

Montoir

StorageLNG terminallingZeebrugge Hub spot market

GROUP STRUCTURE

Publigas(Group venture of the Belgian municipalities)

Caisse de dépôtet placement du

Québec

Listed on second marketNYSE

Euronext Brussels

Fluxys SARegulated activities Fluxys G

Fluxys EuropeNon-regulated activities

90% 10%

89.97%

10.03%

100%

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Golden share held by the Belgian state

Regulated activities in Belgium

Fluxys G Non regulated activitiesin Belgium and activities

outside Belgium

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KEY ROLE OF THE ZEEBRUGGE AREA

LNG TERMINAL

1987

Interconnector pipeline⇆ United Kingdom

Zeepipe from Norwegian gas fields

INTERCONNECTORTERMINAL

1998ZEEBRUGGE HUB

SPOT MARKET: PIPE GAS & LNG

1998 ZEEPIPETERMINAL

1993

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Zeebrugge area: overall capacity of about 48 bcm/y

= 10% of border capacity needed to supply Europe

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ZEEBRUGGE HUB: ONE OF THE LEADING SPOT GAS MARKETS IN MAINLAND EUROPE

80 active traders 2008-2011: several all-time highs in average daily net traded volume 2010 t t d d l f 62 b 3 5 ti l2010: net traded volume of 62 bcm = 3.5 times yearly consumption Belgium

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1975

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LNG SUPPLY CONTRACT

SONATRACH/DISTRIGAS

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1978 :

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CONSTRUCTIONof PENINSULA

for the LNG terminal

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Commissioning

1987

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2004-20082004-2008

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First capacityenhancement

+3.3 mt/y

First capacityenhancement

+3.3 mt/y

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LNG TERMINAL 24 YEARS IN OPERATION

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Reception of >1,200 LNG carriersLNG carriers from 7,500 to 266,000 m3 LNG About 70 different ships received

Throughput capacity: 6.7 mt/y – 110 slotsStorage capacity: 380,000 m3 LNGSend-out capacity: 1,700,000 m3(n)/h

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CARGO MOVEMENTS SINCE 2007

20082.2 mt unloaded0.3 mt loaded


20072 mt unloaded


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In the first half of 2011, 41 cargo’s were unloaded, amounting to 2.7 mt of LNG.

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QUALITY OF LNG

Depending on source, however, most LNG ships are coming from Qatar

Typical LNG qualityyp q y- 0,1 - 0,3% nitrogen - 93 - 93,2 % methane - 6,6 - 6,7 % ethane - 0,03 - 0,17% propane - 0,006 - 0,015 % i-C4H10 - 0,008 - 0,015 % n-C4H10 - 0,0008 % i-C5H12 - 0,0005 % n-C5H12

d it 440 k / ³ @ 160°C d 100 b

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- density: 440 kg/m³ @ -160°C and 100 mbarg- GHV: 42 000 kJ/m³(n) - Wobbe: 54 500 kJ/m³(n)

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LONG TERM CONTRACTUAL SITUATION

Shipper Duration(years)

Quantity (mt) Slots As from

3 Long term capacity contracts

f Q / f

Qatar Petroleum / ExxonMobil 20 3.3 55 01/04/2008

Distrigas 20 2.0 33 01/04/2007

GDF SUEZ 15 1.4 22 01/10/2008

TOTAL 6.7 mt 110

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Full assignment from QP/ExxonMobil to EDFT until end of 2011Agreement between GDF SUEZ and ConocoPhillips

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COMBINING LONG-TERM AGREEMENTS WITH SPOT DELIVERIES

Primary market- If scheduling of slots by primary shippers leaves sufficient

spacing: extra slots created on the primary market and published- First half of 2011: 12 extra slots created (16 in 2010)

Secondary market- Any slot not to be used by primary shippers:

made available on the secondary market and published- First half of 2011: 16 slots made available (20 in 2010)

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LT TARIFFS: ATTRACTIVE PRICE LEVEL

5,245

6€/MWh

Slot price benchmark 2010

Slot 750 443 €/Slot

1,04 1,24 1,281 0,99 1,17

1,74

0,91

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3

4

5Additional Schend Out Capacity 1.95 €/kWh/h/yAdditional Storage 96.39 €/m3 LNG/yAll tariffs are indexed at 35% of CPI, with base Index of July 2003 (112.59)

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0

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PanigagliaItaly

RovigoItaly

BarcelonaSpain

CartagenaSpain

SinesPortugal

MontoirFrance

Fos-TonkinFrance

Fos-CavaouFrance

ZeebruggeBelgium

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TAKING DESTINATION FLEXIBILITY TO ANOTHER LEVEL: SINCE AUGUST 2008 LOADING OF LNG SHIPS

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Tariff:berthing right = 130 294 €75 000 € + 0.1 €/(MWh loaded)544 €/h for gassing-up and cooling down

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LNG SHIP LOADING SERVICE A SUCCESS

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Until now 19 ships have berthed for loadingLoading service used by multiple shippersFlurry of destinations

Source: public information

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ZEEBRUGGE SECOND JETTY: CREATING SMALL SCALE LNG OPPORTUNITIES

Successful trial loading of 7 500 m3 LNG vessel Coral Methane at existing jetty in 2010

LNG loading slots for 3 500 m3 LNG to 217 000 m3 LNG vessels

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TAKING DESTINATION FLEXIBILITY TO ANOTHER LEVEL: LAUNCH TRUCK LOADING SERVICE IN 2010

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Capacity of 4000 trucks per yearCurrent destinations

UK (on ferries departing from Zeebrugge)Continental Europe (Germany, …)

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SERVICES AND PRICING

LNG Truck Approval Service Charge €3 264 per LNG truck approval

Truck services offered by Fluxys LNG:

Service Charge LNG Truck LoadingService Charge €512.20 per loaded LNG truck

Cool Down Service Charge €2 176 per cool down

LNG can be bought from all shippers active at the terminal:

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LNG can be bought from all shippers active at the terminal:- Shippers with long term contracts: GDF Suez, EDF Trading and

Distrigas ENI- Other shippers on the moment they have LNG at the terminal

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OPEN SEASON SECOND CAPACITY ENHANCEMENT

5th tank2nd jetty

Exploratory phase Open Season initiated late 2007Non-binding interest by multiple shippers for a variety of services

j y

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g y p pp yStarting from wide spectrum of demand: outline of capacity enhancement- Phase 1 – Second jetty for unloading and loading (~ 2014): investment decision taken- Phase 2 – Additional capacity (~ 2016):

> Up to 160,000 m3 LNG storage> Up to 450,000 m3(n)/h send-out

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CURRENTLY BINDING PHASE OPEN SEASON

Offer:- Additional throughput capacity of 2-3 bcm/y- 70 additional berthing rights for loading of (small) LNG ships with g g g ( ) p

a lower scheduling priority.- Acceptance of LNG carriers from 3,500 m3 LNG to Q-max- Capacity subscription: period up to 20 years

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INDICATIVE TIMETABLE BINDING PHASE OPEN SEASON

Launch Confirmation of interest

Contractual documentation

Binding requests end allocation of

capacitiesEnd 201111 Mar 2011 15 July 201103 Feb 2011 27 Oct 2011

Fluxys LNG makes services offer

available

Signature of confidentiality

Fluxys LNG makes available contractual

documentation

Market consultationon going

Approval of contractual documents

by CREG

g yagreements and submission

of non-binding interestParticipating companies to submit binding

capacity requests, Fluxys LNG to

allocate capacities

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For more information: www.fluxys.com/en/Services/LNGTerminalling/OpenSeason/OpenSeason.aspxwww.fluxys.com/en/Services/LNGTerminalling/OpenSeason/OpenSeason.aspx

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NON-BINDING INTEREST

Availability Total indicative requests

Average requested

period (years)period (years)

Slots (#/y) 40 133 to 167 13,3

Additional storage (m³ LNG/y) 90 000

262 000 to

372 00015,6

Additional send-out 100 000920 000 to

14 8(m³(n)/h/y) 100 0001 100 000

14,8

Loading slots (#/y) 70 215 to 225 12,4

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INDICATIVE TARIFF PROPOSAL

Existing tariffs for existing and new capacities

New tariff for loading services

Unloading slot 750 433 €

> Berthing right 130 294 €

> Basic storage 313 682 €

> Basic send-out 306 467 €

Additional storage 96.39 €/m3 LNG/y

Additional send out 1 95 €/(kWh/h)/yAdditional send-out 1.95 €/(kWh/h)/y

Additional berthing 75 000 €

> Variable loading fee 0.18 €/MWh loaded

Tariffs base 2003, indexed at 35% of Belgian consumer price index

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CONCLUSIONS

Zeebrugge LNG terminal: track record of successfully anticipating new market conditions and opportunities

- Open access facility with throughput capacity doubled during first it h tcapacity enhancement

- Introduction of ship and truck loading services to increase destination flexibility

Second capacity enhancement:- Loading of small scale LNG vessels- Attractive LT tariffs

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9/22/2011 zeebrugge lng terminal: creating opportunities ... lng...zeebrugge hub: one of the leading...

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