jordan lng project - ingas 2019€¦ · what is nepco? •is the national electric power company .....
TRANSCRIPT
Jordan LNG Project
Presented By: Eng. Ahmad Zubi / NEPCO
Contents:
• Introduction Part 1
• Terminal Project Part 2
• LNG Procurement Strategy Part 3
Part 1
Introduction
Quick Facts (2015) Area: 89 342 km2
Population: 9.9 million
GDP: USD 40 billion
GDP per capita: USD 6,100
GDP growth rate: 3.3%
Imported Energy: 97%
Electricity demand growth rate: 5.5%
Power Generation Capacity: 4,000 MW
Registered Peak Load: 3,300 MW
The Hashemite Kingdom Of Jordan
What is NEPCO?
• Is the National Electric Power Company ..
NEPCO (System Operator)
Principal
Consumers Distribution
Companies
Fuel Supply
Fuel cost
(P
ass thro
ugh)
Regulated Tariff (EMRC)
PPAs
Electrical
Interconnection
Renewable
Projects
Generation
Companies
PPAs
Single Buyer Model
In the year 2003, NEPCO
started to use the Egyptian
Gas, through a pipeline from
the Egyptian fields to Jordan
and extends to Syria, Lebanon
and Turkey (Arab Gas Pipeline
Project).
So, the Jordanian Power
Generation started to depend
mainly on the NG (>80%).
Natural Gas History in Jordan
But, from the year 2011, some circumstances occurred and affect the ability of
Egypt to Supply the NG to Jordan:
- Egyptian Gas Supply profile for Jordan in (mmscft/d) -
NEPCO Financial Crisis
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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Contractual Limit
Actual Supply
•As result Jordan has resorted to import more expensive fuels such as HFO and
LFO which raised the energy bill further to 20% of the GDP and forced
NEPCO to increase substantial losses.
The optimum solution for Jordan was building the
LNG Terminal.
Part 2
Terminal Project
Project Main Elements
NEPCO Role
• MEMR act [As Regulator]
• The terminal started to receive LNG cargoes since 10.07.2015
Terminal construction cost was USD 65 million financed by Kuwait
Fund For Arab Economic Development.
The Terminal site and facilities has been leased to NEPCO through
a “Terminal User Agreement” with ADC.
The Terminal has been reviewed and approved by many LNG
suppliers (e.g. Shell, Vitol, BG, PB and Trafigura ..etc).
Sheikh Sabah Al Ahmad Terminal
Terminal doors are open for any company for inspection and study, and NEPCO welcomes any comment.
- Golar Eskimo upon arrival on 25.05.2015 -
Golar was reached upon a tender issued by MEMR in 2013.
The contract was signed on 13.11.2013 between MEMR & Golar
Eskimo, and transferred to NEPCO in August 2015 through
Novation Agreement signed between the parties.
Golar Eskimo
The term of the
agreement is for
10 years can be
terminated after
the 5th year by
NEPCO option.
Golar Eskimo
Golar Eskimo is an 160,000 m3 Floating Storage & Regasification
Unit.
By its three Regasification Skids, Golar Eskimo can send out NG
up to 710 mmscft/d (Peak Capacity).
Contractually, the maximum send out rate is 490 mmscft/d
(Maximum Capacity).
The contractual availability
of the FSRU is 98%
In spite of the relative stability of the sea water in the gulf of
Aqaba, we have 4 tug boats in Aqaba with power of 80 tons/tug.
Marine Services
These 4 tugs are
specialised only for the
LNG terminal.
The 4 Tugs are brand-new
made in Turkey by Sanmar
SPT was reached upon a tender issued by NEPCO in 2014.
SPT has a good experience in this field (i.e. as they work in
Mina Al-Ahmadi Gasport, Kuwait since 2007).
Terminal O&M
Third Party Surveyor
NEPCO contracted with INTERTEK as the Third Party
Surveyor for whole LNG cargoes reaches Sheikh Sabah
Al Ahmad Terminal.
A 10 years Gas
Transportation
Agreement has been
entered with Fajr
Company since 2015.
Under the Agreement,
Fajr transports the Gas
from the output of
Terminal at Aqaba to the
inlet of the power
plants all over the
country.
Gas Transportation
Part 3
LNG Procurement Strategy
Up to 10 years, NEPCO’s demand may not exceed 400mmscft/d,
if the Oil-Shale generation project is operated in 2020 as
expected.
NEPCO Needs
After that, the expectations may goes down also by 300
mmscf/d, if the operation of the Nuclear Project starts,
which is excepted to be in 2 phases in 2026 & 2027.
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NEPCO NG (mmscft/d)
The GoJ issued a
tender in 2013, which
awarded to Shell
upon competition
with 7 prequalified
companies.
A 5-years SPA was signed with Shell International
Trading Middle East on 21.01.2015 for a quantity of
59.13 tBtu/year (around 18-20 cargoes/year).
Shell 5 years Contract
SPA quantity can cover around 40% of NEPCO needs.
Furthermore, NEPCO used the SPA, to contract with Shell
to provide:
1. the Commissioning
Cargo on Golar
Eskimo itself, which
reached Aqaba with
3.3 tBtu of LNG.
2. Additional 6 cargoes
to be delivered in
2015.
Shell 5 years Contract
Spot Market Supply
In order to complete its need, NEPCO has signed 22 MSA
with the following suppliers:
Vitol
On the 17th of August
Trafigura
On the 1st of September
Trafigura
On the 21st of September
Trafigura
On the 6th of October
BG
On the 13th of October
NEPCO purchases spot cargoes through open tenders
5 spot cargoes were purchased in 2015:
3 spot cargoes were purchased in 2016:
Spot Market Supply
Gas Natural
On the 16th of February
Gunvor
On the 23rd of March
Shell
On the 23rd of July
The requirements for NEPCO to sign any MSA with a new
LNG Supplier are:
1. to have an evidence of supplying 10 cargoes successfully
through the last year,
2. to provide the financial statements of the last 3 years.
NEPCO is studying the ability to get along without the
requirements mentioned above, against obtaining suitable
performance guarantee and liability cap.
Master Sales Agreements
NEPCO still welcoming signing any MSA with
any potential LNG supplier.
NEPCO issued another mid-term LNG supply tender (2
years) in July, 2015 and Shell also won the tender through a
competition with 14 potential supplier who submit for
NEPCO their respectful offers.
The contract with Shell has been signed on 20.10.2015 for
supplying NEPCO with 59.13 tBTU/year in the years
2016&2017.
Shell 2016/2017 Contract
NEPCO LNG in (2015-2017)
2015
SPOT CARGOES
SHELL - 5 YEARS SPA
SHELL - 2 YEARS CONTRACT
24%
76%
2017 2016
44% 46%
46%
8%
44%
12%
86,7%
LNG
Risha Gas Field
Diesel
HFO
Electrical
InterconnectionWind
Solar
Hydro0
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100
150
200
250
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450
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
MM
SCF/d
The average of quantities of LNG was
332 mmscf/d
The average of LNG quantities in 2016
LNG for Electricity in 2016
The LNG was contributed around
87% of all power generated in 2016
LNG Demand in 2017
Further to Shell LNG supplies for NEPCO, it Expects to have 6 additional cargoes from the spot market next year April-September (i.e. a cargo/month).
The tenders will be issued by NEPCO 60 days before cargo required date.
The tender documents will sent to all the companies that signed MSA with NEPCO.
LNG Plans after 2017
As NEPCO signed an agreement with
Shell for 2016-2017, NEPCO may issue a
tender in April 2017 for LNG supply in
the next year(s).
The tender may be for one or two years,
for a quantity of 59.13 TBTU/Year.
2015
2016
2017
$0
$100
$200
$300
$400
$500
$600
$700
Cost Saving
(million USD)
2015
2016
2017
NEPCO Expected Saving From Using LNG in (2015-2017)
• Considering the Brent crude is $60 a barrel, the expected saving in
the generation cost for NEPCO in the current years due to the
LNG Project, will be as follows:
Terminal Usage Agreement has been
executed between EGAS and NEPCO,
and accordingly the reverse flow to
Egypt started on 06.08.2015.
So, by reverse flow in the JGTP, NEPCO
Shares the available capacity with the
Egyptian taking into consideration not
to affect fulfilling of Jordan needs.
Accordingly, EGAS brought 8 cargoes in
2015 and the same number in 2016 to
the Terminal. And Nowadays, we have at
least an LNG vessel at the terminal per
week.
LNG Cooperation with Egypt
NEPCO now uses this terminal to help the brotherly Egyptian side to face the shortage of production.
Jordan Industry Needs
The estimated need of NG for the industrial sector: Is about 70 mmscft/d.
The industry sector in Jordan still need Infrastructure to be able to use the NG which is excepted not to be ready before 2017.
In Jordan, up to 2022, Fajr Company has the exclusive rights to sell NG in pipelines to any entity consume more than 1000 mmBtu/year.
For this purpose, NEPCO executed this year a GSPA with Fajr to sell them the NG from the LNG Terminal, the only available source for gas in Jordan nowadays.
THANK YOU
……………..
AHMAD ZUBI