Marine CNG as a Viable Small Field Development Strategy

Centre for Marine CNG Inc.

• Newfoundland’s only R&D company exclusively dedicated to the oil & gas industry

• Independent corporation• Global focus on the efficient, safe and

competitive transportation, storage, handling and usage of compressed natural gas

• Facilitating the development of a new technology

Our Team and Alliances

• Craig Young, P.Eng. – Operations Manager

• Stephen Duffett, B.Comm. – Business Advisor

• Heather Tucker – Office Coordinator

• John Melville – Offshore Systems Consultant

• Craig Ivany – Laboratory Supervisor

• Dr. Majid Abdi, P.Eng. – Senior Research Consultant (Process)

• Dr. Brian Veitch, P.Eng. – Senior Research Advisor (Marine)

• Mr. Biswanath Saha – Researcher (Chemical Engineering)

• Mr. Esam Jassim – Researcher (Mechanical Engineering)

• Ms. Erika Beronich – Researcher (Chemical Engineering)

• Michael Hanrahan – Managing Director

Our Board of Directors

• Dr. Chris Loomis – Chair - VP Research, Memorial University

• Mr. Bill Sember – Vice Chair – President, ABS

• Mr. Gunther Baumgartner – Treasurer – President, North Atlantic

• Dr. Bill Pike – Editor in Chief, Hart Energy Publishing

• Mr. John O’Dea – Secretary – Partner, McInnis Cooper

• Mr. Mark Richards – Versa Power

• Mr. Brian Condon – ADM, Department of Natural Resources

• Dr. Ray Gosine – Memorial University

• Dr. Jim Wright – Memorial University

• Mr. Ruud Zoon – Vice President, Husky Energy

• Mr. Andy Noseworthy – Government of Canada

• Mr. Michael Hanrahan – Managing Director

Our Members

 

         

                  

          

 

          

 

          

 

          

Our Facility & Capabilities

Our Facility & Capabilities

Our Facility & Capabilities

Commercial Projects

1. Preparation of the technical specifications for bid documents and participation on the technical review committee (Asia)

2. Preparation of a regulatory review road map and associated timeline for a natural gas producer (North America)

3. Analysis of gas behaviour for a marine CNG proponent (Central America)

4. Report on marine CNG technology and status of industry (South America)

5. Report on marine CNG technology and status of industry (South Africa)

6. Cost and economic evaluation of the feasibility of CNG trucking (West Africa)

Marine Compressed Natural Gas

What is Marine CNG?

Possible CNG Application

Project Concept

Project Concept

Project Concept

Fewer Assets - Transferable Assets

Delivery Chain Capital Cost Comparison ($US millions)(Source - Wood Mackenzie)

LNG CNG

Gathering system / Liquefaction / Storage / Jetty

$3,000 $100

Loading Buoy(s) $0 $50

Ship(s) $440 $900

Unloading Jetty / Storage / Regas $500 $100

Unloading Buoy(s) $0 $50

Total Capital Cost $3,920 $1,200

SIGALPHA - 1965

• Columbia Gas commissioned first CNG ship• “Bottle-type”• Tested around New York Harbor• Two major constraints:

– ASME standards drove cost of steel pressure vessels too high;

– Natural gas traded at $0.60 and trended downward

Columbia Gas

TransCanada CNG Technologies Ltd.

EnerSea Transport LLC

Knutsen Group

Sea NG Corporation

CNG Projects

• Myanmar to India• Proponent – GAIL• Status – Expression of Interest Q1, 2006

CNG Projects

• Tanzania to Kenya– Proponent – Artumas Group Inc.– Status – awarded FEED to TransCanada in April

CNG Projects

Oman to Pakistan– Proponent – Progas– Status – Pre-FEED

CDTech Example

Gasoline desulphurization technology Unproven at commercial scale (c1999) Canada’s largest refiner invest in technology to

meet statutory requirements for low sulphur

Why? The technology proponent presented creative

commercial terms

Summary

CNG for a Small Field Application:• Few fixed assets• Reduced capital costs• Scalable and transferable