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Options for stranded gas in Africa – the CNG alternative. Overseas Shipholding Group - OSG. Market leader in providing marine energy transportation services and solutions. Controlled, dual flagged fleet, of 105 vessels; in excess of 12m DWT.
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Overseas Shipholding Group - OSG • Market leader in providing marine energy transportation services and solutions. • Controlled, dual flagged fleet, of 105 vessels; in excess of 12m DWT. • 39 new builds / rebuilds under construction in Korea, China, Japan and the United States. • Focused on four market sectors: Crude, Products, U.S. Flag and Gas. • Our goal is to achieve market leading positions in all sectors. • Global Operations, listed on NYSE since 1973, second largest publicly traded tanker company in the world. • 3,980 employees (3,579 seagoing personnel and 401 shore side staff).
TransCanada introduction Leading North American energy company • Competitively positioned in natural gas transmission & power services • $25.9 billion of premium pipe and power assets ($US at Dec. 31, 2006) • Skilled, expert people with strong technical knowledge • Strong financial position
TransCanada – extensive energy network • approx. 59,000 km (36,500 miles) of wholly owned pipeline. • transports 15 billion cubic feet/day (Bcf/d) from virtually all major supply basins on the continent. • 2,969 km of proposed oil pipeline, capable of transporting 435,000 barrels per day. • 16 power facilities with 7,700 megawatts of power generation. • two proposed liquefied natural gas facilities total capacity 1.5 Bcf/d. • significant gas storage capacity in Canada and the United States, 360 Bcf.
Safe and reliable delivery of energy • TransCanada and OSG joined forces to provide a complete CNG marine transport service to customers worldwide. • TransCanada and OSG • have well respected and established management organizations with extensive technical support, leadership and expertise. • are committed to high standards for environmental and safety performance and have records and operating standards that confirm this commitment. • are financially capable and able to achieve competitive financing structures for any CNG transport solution. • are committed to long term energy transportation.
Energy demand - the role of natural gas. • “World energy consumption is projected to increase by 71% from 2003 – 2030” • Source: EIA International Energy Outlook 2006. • Environmentally attractive primary energy source, providing 26% of world energy needs by 2030. • Many fields are too small and remote from markets to be economically developed for pipelines or LNG. • This is the niche that marine CNG occupies.
Energy demand – stranded gas? • Definition: reserves discovered but not developed for physical or economic reasons. • On a global scale, this represents a huge energy resource. • Increased demand and rising costs drive the search for new solutions. • Marine CNG is the key to unlock this resource.
Stranded gas in sub-Saharan Africa Rovuma Basin Orange Basin
Key drivers for marine CNG • More flexible than LNG • Market location • Gas field location • Gas field characteristics • Project portability • Handles both lean and rich gas • Smaller gas processing overhead compared with LNG • More energy efficient process than LNG - energy loss (5-8% vs. 15%) Source : DNV
Key drivers for marine CNG • High energy costs driven by oil price. • Increase in global gas demand/price. • Increase and more interest in gas discoveries. • Power and industrial plant fuel replacement. • Anti-flaring regulations/Kyoto accord. • Government directives/incentives for cleaner fuels. • The ability to provide secure and reliable delivery.
Bulk CNG transportation – robust and proven process NPT was a subsidiary of NOVA Corporation, a part of the present day TransCanada.
Bulk CNG transportation – robust and proven process Loading/Unloading Compression Delivery Station
Gas Transport Module (GTM) – fully tested and approved • Prototype under test ASME Code Case #2390 approval - October 2002 All containment system testing completed in 2001 Demonstration Unit
GTM system advantages • Larger size and lower cost than conventional seamless tube steel and all composite gas cylinders; minimizes valving and manifolding. • GTMs are up to 40% lighter than an all-steel pressure vessel of the same rating. • Ships operate at ambient temperature so require no complicated loading schemes or refrigerated hold. • Loading facilities require only compression, cooling, dehydration, and loading connections - similar to offshore crude loading. • Unloading facilities require letdown station, compression and unloading connections.
GTM system advantages • Simplicity of system provides low initial capital commitment to initiate gas flow. • Easily developed by adding ships and additional loading facilities to increase gas deliveries. • Flexibility of system allows ships to be re-deployed to other production areas or markets when no longer needed. • Simplicity of loading and unloading facilities means little stranded capital.
Pressure vessel manufacture. Manufacturing License awarded to FPC Inc. – Plant Developed in Saint John, New Brunswick, Canada. Deep Water Loading, Unloading and Ship Outfitting CapabilityWorld Class Facility: ASME Section VIII, Div 3 and Section X
Flexible delivery - the GTM truck trailer Volume: up to 250,000scf (7,100 m3) Weight: ~ 42 tonnes Length: 20 ft - 45 ft Number of GTMs: 2 or 3 ISO Container Frame Standard ISO Container Chassis Trailer
Flexible delivery – the GTM ISO container Volume: up to 250,000scf (7,100 m3) Weight: ~ 29 tonnes Length: 20 - 45ft Number of GTMs: 2 or 3
Conclusion – the CNG alternative works for Africa • Natural gas is the fastest growing primary energy source. • Many fields too small to be developed for LNG or too far for pipelines. • Marine CNG can supply to stranded markets without the need for expensive infrastructure. • Fuel replacement projects are ideal for marine CNG and can provide local solutions for local markets. • Stimulation of economic and industrial growth.
The driving force to deliver Africa’s stranded gas? • Length Over All Appr. : 149,90 m • Length Between P.P. : 142,00 m • Breadth mld. : 23,50 m • Depth to double bottom : 2,00 m • Depth mld. to Main Deck : 15,00 m • Draught Design : 7,50 m • Draught Summer / Scantling : 8,00 m • Hull Displacement : 18700 tons