houston alaska - alternate site for natural gas ... · • liquefaction cycle uses feed gas as...
Post on 15-Aug-2020
0 Views
Preview:
TRANSCRIPT
Houston Alaska - Alternate site for Natural Gas Liquefaction facility
PG DR GS DL & SGT Restricted © Siemens AG 2017
Restricted © Siemens AG 2017
Page 2
Agenda
Introductions Who is Siemens? Titan Plant Expansion Concerns with current plan Alternate Solution Plan Site Advantages & Benefits LNGo HP Micro-liquefaction System Overview Cost Model Next Steps
Restricted © Siemens AG 2017
Page 3
Siemens Fast Facts
• Global Powerhouse focusing on electrification, automation, and digitalization • Approximately 400,000 employees in 190 Countries (50,000 in US) • Projects generated over 800,000 jobs in US alone • 100 Siemens employees in Alaska • Over $88B in revenue FY16 • Almost $24B in revenue from US
• Siemens is one of the world’s largest producers of energy-efficient, resource-saving technologies
• Leading supplier of systems for power generation and transmission as well as medical diagnosis
• Innovation is the basis for Siemens’ success and for over 170 years has heavily invested in technology.
• $4B spent annually in R&D
• Operate over 16 separate Corporate Technology (CT) research centers globally
• Collaborate with 25 principal Universities in the areas of electrification, automation and digitalization
• Siemens has approximately 60,000 granted patents, hundreds pending and on average file 17 per day!
Restricted © Siemens AG 2017
Page 4
Depth and Breadth of the Siemens Organization
Managing Board
Market Americas Healthcare worldwide
Middle East,
Russia, CIS1) Asia, Australia Europe,
Africa
Siemens Financial Services
SFS
Divisions (report P&L)
Power and Gas
PG
Wind Power and Renewables
WP
Power Generation Services
PS
Mobility
MO
Energy Management2)
EM
Building Technologies
BT
Digital Factory
DF
Process Industries and Drives
PD
Healthcare
HC
Separately managed
Corporate Core Corporate
Development
CD
Finance and Controlling
FC
Corporate Technology
CT
Human Resources
HR
Communications and Government Affairs
CG
Legal and Compliance
LC
Corporate Services Siemens
Real Estate
SRE
Corporate Supply Chain Management
CSCM
Information Technology
IT
Global Shared Services
GSS
Governance & Markets 3)
GM
Restricted © Siemens AG 2017
Page 5
Building Technologies
BT CPS Control Products & Systems
BT System House Solutions, Service
BT Enterprise Building Performance & Sustainability, national accounts, data centers and enterprise security
Mobility
MO RS Rolling Stock (Urban Transport & Mainline Transport)
MO RA Rail Automation
MO RE Rail Electrification
MO ITS Intelligent Traffic Systems
MO CS Customer Services
Process Industries &
Drives PD LD Large Drives
PD OM Oil & Gas and Marine
PD PA Process Automation
PD MD Mechanical Drives
PD MT Metals Technologies
Digital Factory
DF CP Control Products
DF CS Customer Services
DF FA Factory Automation
DF MC Motion Control
Power Generation
Services
PS PG
Power & Gas
PS DGC Distributed
Generation & Compressors
PS WP Wind Power & Renewables
Power & Gas
PG GT Large Gas Turbines,
Generators
PG DG Distributed Generation
PG SU Steam Turbines
PG ES Energy
Solutions
PG IE Instrumentation
& Electrical
PG CP Compressors
PG-DR
Dresser-Rand
Wind Power & Renewables
WP OF Offshore
WP ON Onshore
Energy Management EM MS Medium Voltage & Systems
EM LP Low Voltage & Products
EM TR Transformers
EM HP High Voltage Products
EM SG Smart Grid Solutions & Services
EM EAEnergy Automation
EM TS Transmission Solutions
Siemens Divisions and Business Units
Healthcare
HC IM
Imaging & Therapy Systems
HC CP Clinical
Products
HC DX Diagnostics
HC CX Customer Solutions
Siemens Financial Services SFS COF Commercial Finance SFS FIM Financing and Investment Management SFS INS Insurance
SFS PSE Project & Structured Finance Power, Oil & Gas SFS PSH Project and Structured Finance Healthcare and Leveraged Finance SFS PSI Project & Structured Finance Energy Management, Mobility & Industries
Corporate Services and Corporate Core CD Corporate Development, Includes Siemens One and CoC CF Controlling and Finance CG Communications and Government Affairs
CT Siemens Corporate Technology GM Governance and Markets GS Global Services, Includes IT, SRE
HR Human Resources LC Legal and Compliance
Restricted © Siemens AG 2017
Page 6
It’s true.. we even help The Avengers do their job better!
http://read.marvel.com/#/labelbook/44729
Restricted © Siemens AG 2017
Page 7
Titan Plant Expansion Concerns
Multiple single points of failure; lacks utility grade reliability and redundancy
• Delivery
• Production
• Site location
Restricted © Siemens AG 2017
Page 8
Titan Plant Expansion Concerns - Delivery
Trucking LNG is an unsustainable and costly option for a long term growth strategy
• Increase in gas demand = more trucks on the road
• Requires traveling the most dangerous segments of AK highways
• Has proven to be a significant safety concerns
• Titan area is not on the Rail line… trucking is its only mode of transportation/delivery
Restricted © Siemens AG 2017
Page 9
Titan Plant Expansion Concerns - Delivery
• Hwy Axle load limits may be reduce during spring months
• Road beds are not constructed for heavy hauling
• State Funds are needed now to repair and rebuild these roads
• Houston and Big Lake do not want truck traffic on their roads
• State DOT designates Burma Road as a future alternate truck route through Big Lake
and Houston; currently its a glorified trail
• Big Lake just completed a round about to block these trucks
• Potential for IGU to realize unexpected costs later as roads degrade
Restricted © Siemens AG 2017
Page 10
Titan Plant Expansion Concerns - Production
• Titan plan will maintain poor, road-centric, supply chain reliability
• Current expansion plan is for a new 100k gallons of LNG/day facility
• Current demand is approximately 30k gallons /day which is being met by Titan
• Excessive campaigning required due to mismatched plant size to initial demand
• Large plant will be operationally inefficient due to excessive required start/stops
Restricted © Siemens AG 2017
Page 11
Titan Plant Expansion Concerns- Site Location
• Adding additional LNG capacity at the same site fails to add diversity in supply chain and reduces reliability
• Backup plan is trucking LNG from Canada
• 5 day turn around, 2 drivers per truck
• Not logistically feasible with current assets
Restricted © Siemens AG 2017
Page 12
So what’s a better plan?
Deploy modular micro LNG systems at Houston in order to :
Increase reliability & redundancy Diversify supply chain Cost effectively deliver LNG via Railroad Improve road safety Decrease traffic congestion Avoid hidden costs in road upgrades and repairs Improve efficiencies by scaling production to match demand Achieve HB105 goals and reduce PM 2.5 Be operational in about 12 months!
Restricted © Siemens AG 2017
Page 13
Proposed LNG Plant Site Houston, Alaska, Rail Head & Industrial Park
KI- Proposed Houston LNG Site
Restricted © Siemens AG 2017
Page 14
Existing Rail Line to Port Mack Terminates in
Houston
Houston LNG – Rail Service
Unfunded
Titan
Restricted © Siemens AG 2017
Page 15
• Modular system converting natural gas to liquefied natural gas (LNG) Micro-scale, point of use • LNGo LP (Low Pressure) system – up to 7,000 GPD (11 tpd) • LNGo HP (High Pressure) system – up to 30,000 GPD (48 tpd)
• Liquefaction cycle uses feed gas as fuel*, refrigerant, and liquefied product * If power module is included.
• LNGo plants are environmentally sound with no flare tower
as all tail gas is consumed in the process
• The modular and compact micro-scale LNG production plant meets national codes and standards
LNGo System Overview
Restricted © Siemens AG 2017
Page 16
LNGo HP System General Arrangement
Conditioning module Molecular sieve removes CO2 and H2O. The purge flow, with C2 and above, is blended into the fuel supply to the Siemens Gas Engine.
Power module 2 x Gensets driven by Siemens Gas 1MW engine consumes purge gas from mole sieve to power unit
Feed/Flash compressor module MOS™ compressor drives efficient process
Process module Delivers up to 30,000 gpd (48 tpd) LNG
Primary Compressor module MOS™ compressor drives efficient process
Control module Houses all controls for system
Restricted © Siemens AG 2017
Page 17
LNGo HP System Features and benefits
• 30,000 gpd production - perfect size for local LNG production and demand • Re-deployable (skid mounted and small footprint) • Self-powered available - easy to permit • Multiple systems allow to operate independently to maximize efficiencies of each system • Premier, proven Dresser-Rand / Siemens engineered product technologies • Shortest cycle time order to operation (40 weeks for delivery) • Multi-market applications • Worldwide exceptional service and support
Restricted © Siemens AG 2017
Page 18
Houston LNG - Plant Site
A Modular LNG Plant, built for Alaska’s domestic markets, located at Houston, Alaska has strategic financial advantages over all other sites considered.
• Transportation Advantages
• Location Advantages
• Construction Advantages
• Cost savings to the State
• Operational Advantages
• Environmentally Sound
• Helps Communities throughout Alaska become energy viable
18
Restricted © Siemens AG 2017
Page 19
Houston LNG - Transportation Advantages
Leverage AK Railroad
• Primary mode of delivery • Half the cost of trucking and can achieve even greater economies of scale as volume increases • Safer • More reliable method of transport over trucking • Minimize truck traffic and associated hazards • Rail Spur already adjacent to property • Rail access to:
Fairbanks DoD Facilities
Whittier/Seward Ports Nenana Port
Secondary Transport option • Still have access to Parks and Glenn Highways for emergency backup
Restricted © Siemens AG 2017
Page 20
Houston LNG - Location Advantages
• Knikatnu Inc owned • 3K acres Light/Heavy Industrial Zoned
• Coalbed methane present- Estimated 72bcf
• 12 miles from Enstar pipeline
• Lower property tax rate
• On site Rail Access with 180 Car Siding
• High Voltage Power Lines on Site
• Future Waste Water Treatment Site
• Possible Power Plant Site
Restricted © Siemens AG 2017
Page 21
Houston LNG - Construction Advantages
Plant Advantages • Modularized plant design results in shorter construction time
(40 weeks to deliver) • Redeployable design provides flexibility to move assets • Scalable, efficient operations, • Reduced LNG storage costs using ISO’s for storage and rail
transport
Location Advantages • Reduced LNG storage costs using ISO’s for storage / rail
transport • Better ISO (Insurance Service Office) Rating:
• Titan LNG Location has 8 ISO rating • Houston has a 5a ISO rating that means thousands in fire
insurance savings • Alaska’s lowest construction costs/ largest employee
community
Restricted © Siemens AG 2017
Page 22
Houston LNG - Benefits
AK Railroad provides Fairbanks and Alaska a virtual pipeline
Houston LNG Site can service Alaska’s Rail, Sea and Road Communities
Restricted © Siemens AG 2017
Page 23
Proposed Project Costs
• Cost model driven by assumptions which can result in wide range of estimates. • Development and Construction Management are assumed fixed at $21,850,000 can be refined depending on activities performed by IGU
or other stakeholders.
Estimate Gas
Pipeline Railroad
Spur Loading Facility
Power Plant
LNGo (2 or 3 units)
Site Preparation Storage (LNG) Totals
Aggressive $ 5,000,000 $ 220,000 $ 2,850,000 $ 4,600,000 $ 36,500,000 $ 2,550,000 $ 2,850,000 $ 76,420,000
Conservative $ 31,200,000 $ 995,000 $ 2,850,000 $ 17,700,000 $ 54,750,000 $ 4,000,000 $ 14,200,000 $ 147,545,000
Restricted © Siemens AG 2017
Page 24
Next Steps
Work with IGU to: • Clarify scope and specific details of LNG plant
• Review Cost Models for Capital Equipment and Operations to
determine burner tip cost
• Define Acceptable Risk Mitigation Strategies
• Agree on Growth Strategies
Restricted © Siemens AG 2017
Page 25
Conclusion
Siemens has the expertise and technologies to grow LNG demand in multiple markets to:
• Continue to improve economies of scale to drive down cost
• Support remote communities and other industries using LNG not only for heat but also for power
• Aid in the betterment of all Alaskans by delivering integrated, holistic solutions to meet Alaska’s growing energy and fiscal needs
Restricted © Siemens AG 2017
Page 26
Questions?
Kelly M. Laurel Director, Energy and Infrastructure Siemens Government Technologies, Inc. 2231 Crystal Drive, Suite 700 Arlington, VA 22202
Office: 703.480.8905 Mobile: 703.789.5438 kelly.laurel@siemensgovt.com
top related