lng 101 presentation kitselas august 15, 2014

Kitselas nation & the World energy economy

Mark Podlasly, NlakA’pamux nation (BC)markwolfpod@gmail.com August 15, 2014

LNG 101

SOURCE: BC Government

Nightman1965/Shutterstock

CreativeNature.nl/Shuttersock

Nightman1965/Shutterstock

CreativeNature.nl/Shuttersock

Nightman1965/Shutterstock

Amy Johansson/Shutterstock

Oleksandr Kalinichenko/Shutterstock

CreativeNature.nl/Shuttersock

Nightman1965/Shutterstock

Amy Johansson/Shutterstock

Oleksandr Kalinichenko/Shutterstock

CreativeNature.nl/Shuttersock

Nightman1965/Shutterstock

Amy Johansson/Shutterstock

~$180 billion

Oleksandr Kalinichenko/Shutterstock

CreativeNature.nl/ShuttersockNightman1965/Shutterstock

Amy Johansson/Shutterstock

~$180 billion62,700 jobs

CreativeNature.nl

Amy Johansson

Trans-CANADa RAILWAY

200 times

$0.9 Billion(2014 dollars)

Amy Johansson

2010 Olympic games

24 times

$7.5 Billion(2014 dollars)

Amy Johansson

US Moon landing $118 Billion(2014 dollars)

Why LNG? Why now?

Hamsterman/Shutterstock

Growing Population

alexmillos/shutterstock

Source: United Nations

7.2 billion (2014)Growing Population

alexmillos/shutterstock

Source: United Nations

7.2 billion (2014)Growing Population

alexmillos/shutterstock

Source: United Nations

9.6 billion (2050)

* Source: BP Statistical Review of World Energy 2012

World Population (billions) developed

emerging

Getting Richer

Tetiana Yurchenko/Shutterstock

World Wealth ($ trillions)

* Source: BP Statistical Review of World Energy 2012

developed emerging

Black Jack/Shutterstock

Black Jack/Shutterstock

Black Jack/Shutterstock

Black Jack/Shutterstock

BC First Nations & World Energy Markets

Mark Podlasly © 2013 mark@brookmere.netLisa S./Shutterstock

Energy demand

Energy use

* Source: BP Statistical Review of World Energy 2013

Energy source

Geo-grafika/Shutterstock

vasabii/Shutterstock

nikkytok/Shutterstock

7.5

1522

.530

TODAY 2050

World Energy Demand

+ 300%

2012 LNG Consumption: 238 MTA

360 ships

ASIA: biggest LNG buyer

Others 11.6%Italy

2.2%Turkey 2.4%France

3.1%UK 4.3%

Spain 6.6%

Taiwan 5.3%

China 6.2% India

6.3%

Korea 15.4%

Japan 36.7%

~ 70% LNG goes to Asia

!

Largest market = Japan

USA 0.08%

Norway 1.43%

Eq. Guinea 1.60%

Peru 1.64%

Yemen 2.15%

Egypt 2.15%

UAE 2.36%

Brunei 2.86%

Oman 3.41%

Russia 4.59%

Algeria 4.63%Trinidad 6.06%

Indonesia 7.61% Nigeria

8.41%Australia

8.75%

Malaysia 9.72%

Qatar 32.56%

QatarMalaysiaAustraliaNigeriaIndonesiaTrinidadAlgeriaRussiaOmanBruneiUAEEgyptYemenPeruEq. GuineaNorwayUSA

LNG Competitors 2012 = 238 MTA

BC’s LNG Competitors

Qatar

Indonesia

Russia

Equa. Guinea

Malaysia

Nigeria

Brunei

USA

Australia

Vancouver

Kitimat

Prince Rupert

Prince George

KITIMAT

Douglas Channel LNG (0.7 mtpa)

Kitimat LNG (5 mtpa)

LNG Canada Gas (37 mtpa)

PRINCE RUPERT

Western Canada LNG (32 mtpa)

Pacific Northwest LNG (18 mtpa)

OTHERS

South Coast

Vancouver Island

BC LNG Announcements

Vancouver

Kitimat

Prince Rupert

Prince George

BC LNG Announcements

$46 billion tax revenue

$1 trillion activity (to 2040)

40+ First Nations

overseas Money/Buyers/PLAYERS

Global market = global rules

BC LNG Announcements

EXPLoration &Processing

StoragePipeline Liquefaction Marine Transport Storage DistributionRE-gas

EXPLoration &Processing

StoragePipeline Liquefaction Marine Transport Storage DistributionRE-gas

LNG VAlue chain

An integrated energy system

EXPLoration &Processing

StoragePipeline Liquefaction Marine Transport Storage DistributionRE-gas

LNG VAlue chain

EXPLoration &Processing

StoragePipeline Liquefaction Marine Transport Storage DistributionRE-gas

Source: Shell

LNG VAlue chain

LNG VAlue chainEXPLoration &

ProductionStoragePipeline Liquefaction Marine Transport Storage DistributionRE-gas

LNG VAlue chainEXPLoration &

ProductionStoragePipeline Liquefaction Marine Transport Storage DistributionRE-gas

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

LNG VAlue chainEXPLoration &

ProductionStoragePipeline Liquefaction Marine Transport Storage DistributionRE-gas

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Carbon

Hydrogen

Methane: colorless, odorless, combustable gas

Created by decomposing plants and animals

Plants die, fall to seafloor, covered by sediment

Millions of years, high pressure and heat, creates oil and natural gasMichelangelus/Shutterstock

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

‘cap’ rock catches rising natural gas like an umbrella !

a hole drilled through the cap rock !

cap rock can be thousands of feet deep in the earth

Conventional Gas

IMAGE: U.S. Energy Information Association

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Tight Natural Gas: hard rock, fracking

Shale Gas: in shale rock, fracking

Deep Natural Gas: +15,000 feet

Unconventional Natural Gas

Image: John T Takai/Shutterstock

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

huyangshu/Shutterstock

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Dabarti CGI/Shutterstock

$+

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Dabarti CGI/Shutterstock

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

Liquefaction + storage

Exploration & Production

DistributionMarine

transportStorage +

re-gasPipeline

PipelineLiquefaction

+ storageExploration & Production

DistributionMarine

transportStorage +

re-gas

Liquefaction

Oleksandr Kalinichenko/Shutterstock

PipelineLiquefaction

+ storageExploration & Production

DistributionMarine

transportStorage +

re-gas

Oleksandr Kalinichenko/Shutterstock

Nadja1/Shutterstock

PipelineLiquefaction

+ storageExploration & Production

DistributionMarine

transportStorage +

re-gas

239

650

PipelineLiquefaction

+ storageExploration & Production

DistributionMarine

transportStorage +

re-gas

WORLD LNG Capacity

PipelineLiquefaction

+ storageExploration & Production

DistributionMarine

transportStorage +

re-gas

PipelineLiquefaction

+ storageExploration & Production

DistributionMarine

transportStorage +

re-gas

EXPLoration &Production

StoragePipeline Liquefaction Marine Transport Storage DistributionRE-gas

Kitselas nation & the World energy economy

Mark Podlasly, NlakA’pamux nation (BC)markwolfpod@gmail.com August 15, 2014

LNG 101