kudu power project...key facts about the kudu power project ownership nampower, cec, sei location...
TRANSCRIPT
KUDU POWER PROJECT
HIGH-LEVEL PROJECT UPDATE
June 2015
Confidential 1
Illustration of Upstream – Downstream integration
Confidential 2
Illustration of Upstream infrastructure
Confidential 3
Kudu Project History
Confidential 4
4
Upstream-
Downstream
Technical
Integration
Studies
May 11
Gazprom
fails to meet
deadline &
Withdraws
Project
reverts to
800MW
power
project
2010 2011 2012 2013 2014 2015
March 15
GRN Agrees
to Kudu
Support
Package
KuduPower
EPC, O&M,
SEI, MLA
Bidders
Shortlisted
NP & Eskom
conduct joint
Tx studies
Feb 14
KP/CEC Joint
Development
Ag.
signed
Oct 11
Petroleum
Ag.
signed
Oct 14
Tullow
Withdraws
Nov 12
Joint Op.
Ag.
signed
PXA HoT
signed
Mar 13
Project
Development
Ag.
signed
Sep 13
KPS EIA
Revalidated
Sep14
NACC
Approval
Sub-sea, FPS EPC
Shortlisted FEED
Aug 09
CNG
Termsheets
signed
Nov 06
Eskom
withdraws
from PPA
Jul 07
PetroSA
withdraws
Apr 08
Tullow
introduces
CNG
concept
Apr 07
Itochu
20%
farm in
Feb 09
Tullow
proposes
CNG
2007 2008 2009
Aug 09
Production
Licence 002
Nov 07
Eskom
withdraws
from gas
Mar– Jul 07
Export Gas
Pipeline
study
Kudu Options
Study (KPS
size)
Feb 07
Heja Lodge
Mtg
Eskom, Tullow,
Namcor,
PetroSA
2006
Oct 11
Production
Licence 003
Key Facts about the Kudu Power Project
Ownership NamPower, CEC, SEI
Location
Power Station Oranjemund
Gas Field Offshore (170km)
Lead Developer NamPower (51%)
Technology CCGT (F-Class)
Offered Output 2 x 442.5 = 885MW
Preferred EPC & OEM Shanghai Electric & Siemens (LTSA)
Reserve EPC & OEM Posco & Sumitomo, MHPS
MLA Standard Bank
Main Power Off-Taker NamPower
Secondary Off-Takers CEC Plc & Eskom
Generation License application submitted to ECB (approval
by end of May 2015)
GRN Support approved in March 2015
Confidential 5
Power Station Project Cost & Funding
Confidential 6
US$
1200
Mil.
$900m
$300m
$450m
?
$153m
$90m
$57m
75% Debt
25% Equity
50%
Commercial Debt
?
50%
Split
DFIs & ECAs
51% NamPower
30% CEC Africa
19% Strategic
Partner
Standard Bank
(Lead Arranger)
Termsheets with
Hermes (Germany)
Sinosure (China)
Termsheets with
All DFIs
JDA signed
Short-listed
GRN Support
approved
4
Kudu Project Commercial Arrangements
NamPower& other
equity partnersLenders
Share
ho
lde
rs A
gree
me
nt
Finan
cing
Agre
em
en
ts
O&
MA
gree
me
nt
Operations and Maintenance
Company
OEM & EPC Contractor
EPC
& LTSA
Co
ntract
Gas Sales/Supply Agreement
UpstreamParties
KuduPower NamPower
Power PurchaseAgreement
Regional Buyers
Po
we
r Expo
rt A
gree
me
nt
Transmission Agreement(s)
Power to Namibia
1
2 3
4 5
6
7 8
Confiential 7
Kudu Power Station Nam Grid Regional Grid FPS Pipeline
Wet to Spec
Gas Power Spec Gas Power Gas to Power
KuduPower NamPower Eskom
J/v partner
J/v partner
?
KuduPower ? Regional
Sales NamPower
OMCo
NamPower
Tx Eskom
TBD
NamPower CEC
EPC
Contractor OEM
Lenders
J/v partner
Namcor
J/v partner
GRN
Namcor
EPC
Contractor
EPC
Contractor
Energy
Owners
Operators
Constructors
GRN
Infrastructure
Owners
LTSA
Connection.
Loans
EPC
U/S EPC Ag
Tx EPC
I/C
JDA-SHA
PDA
Petr
ole
um
Ag
P
ro
du
cti
on
Lic
en
se
Direct
Implementation
GSA
O&M
Project
Funders Lenders
JOA
Loans
Other
NamPower
SHA
Required Project Relationships & Agreements
Energy
Transmission
Technical
Financial
Recon
Upstream
GRN Off taker
JDA
NamPower
Dx Supply
SEI
SEI
KPS Site
NamDeb
Confidential 8
ECB
Reg
ula
tory I
nte
rfa
ces
9
PXAs GSA PPA
PXA Offtakers Upstream Project Kudu Offshore Gas field
Eskom
CEC
NamPower
51%
NamPower CEC/AFC
Kudu Power
30%
Strategic Partner
19%
Namibia Zambia / South Africa
GRN
100%
300 MW
Domestic: 400-500 MW
100 MW
Downstream Project Kudu Power Station
Construction O&M
Lenders
Debt
NP Equity
Minority Equity
Transmission
Confidential
1. Gas Sales Agreement: A fully termed GSA between
KuduPower and the Upstream Partners has been drafted and
agreed to the fullest extent possible.
2. Power Purchase Agreement: The PPA between NamPower
and KuduPower has been drafted and key terms agreed.
3. The Transmission Connection Agreement (TCA)
between NamPower and KuduPower has been drafted
and key terms agreed.
4. The Transmission Connection Agreement (TCA) with
Eskom has been drafted. Eskom has commenced with the
transmission study for the evacuation of power from Kudu.
Update on Commercial Agreements:
Confiential 10
4. Power Export Agreements (PXA) with CEC:
CEC Plc expressed interest in to off-take about 300MW from the Kudu
Power Station in exchange for 30% equity in the project.
The PXA Termsheet with CEC Plc was signed in February 2014,
Full PXA negotiations have commenced and are expected to be finalized by
July 2015
5. Power Export Agreements with Eskom:
Interest from Eskom is for 100MW mid-merit/peaking (profiled) power,
ZAR-based but with hedging costs incorporated.
A fully drafted PXA was presented to Eskom in 3rd quarter 2014, but
bureaucratic processes are delaying commencement of negotiations.
MME has initiated a process with the DoE to discuss the IGMOU for the
offtake and transmission integration investment in South Africa.
Update on Commercial Agreements:
Confiential 11
Update on Tenders
Mandated Lead Arranger (MLA)
Standard Bank has been appointed as the Mandated Lead Arranger.
EPC
Shanghai Electric Corporation (SEC) in partnership with Siemens AG have been
selected as the preferred EPC contractor and Original Equipment Manufacturer
(OEM) respectively.
Operations & Maintenance Operators (O&M)
Three companies have been shortlisted, and clarifications & negotiations were
finalized on 17 June 2015. Selection of preferred bidder in July 2015.
Strategic Equity Investor
The preferred and reserve Bidders have been selected, and clarifications &
negotiations are underway. This process to be concluded by end July 2015.
Confidential 12
Kudu Off-take Supplied to Namibia
Confidential 13
300MW 24x7 to CEC
550 MW Profiled to NamPower
1. Studies by the Kudu Team & NamPower showed Namibia
could take Kudu output if CEC takes 300MW.
2. In the low off-take scenario (high Ruacana flows, low
demand growth) KPS would be limited to take-or-pay gas
volumes .
Average output doesn’t change over life
Figure 4: Basic Cost Comparison
0
2
4
6
8
10
12
14
16
ITT (120MW) Maamba (300MW) Kafue Lower
(600MW)
Kudu
US
c/k
Wh
Transmission markup
Plant Gate Cost
Regional competitiveness
Source Copperbelt Energy Corporation: 2011
Indicative 2015 Tariffs
Kudu tariff very competitive against any regional project (new build)
SVC
Masivi Shitemo 132kV
2015/2016
West Coast strengthening
2014/2015
Omatando strengthening
Ph 1: 2013/2014
Ph 2: 2016/2017
Auas Gerus 400kV
2017/2018
Gerus Otjikoto 400kV
(Operate at 220kV)
2015/2016
Kudu Transmission
2017/2018
2nd Auas Kokerboom 400kV
2017/2018
Caprivi Link Bipole
Auas Omburu Gerus 400kV
, >2019
Kuiseb Walvis Bay 132kV
2015/2016
Khurub Aussenkehr 132kV
2015/2016
Confiential
Transmission expansion within Namibia (including
connection to Kudu)
Kudu – Eskom Transmission integration
SVC
Kudu P/S
Kokerboom-Auas
Confiential
Kudu – Eskom
Dec
2014
Nov
2014
Kudu Project Update :Timelines - Development Phase
17
Jan
2015
Feb
2015
Mar
2015
Apr
2015
May
2015
Jun
2015
Jul
2015
Aug
2015
Sep
2015
Oct
2015
Nov
2015
Dec
2015
KuduPower EPC/LTSA
Upstream EPC(s)
Finalise GSA/Gas Price
Operator
Finalise O&M
Finalise PPA
Lenders’ Due Diligence
Finalise Financing Agreements
Participation Ag & Financing
IFC Equity Financing
GRN support/Implementation Agreements
Finalise SEI Shareholders’ Ag
Finalise PXAs
Finalise TCA
Eskom Interconnection
Confidential
All technical and commercial contracts are in final stages of
negotiation/drafting.
Time required for Lenders’ due diligence is outside NamPower’s
control, however GRN Support has made the project more
attractive and bankable,
Aggressive timelines have been set for the project, but slippages of
up to 3 months will not threaten project completion.
Confidential 18
Key issues on Project Timelines
INDICATIVE PROJECT TIMELINES
o Conclusion of all agreements 31 July 2015
o Financial Close: December 2015
o Commencement of construction: 1st quarter of 2016
o Construction Period: 33 months from FC
o Commercial Operations Date (COD): 1st quarter 2019
Confiential 19
THANK YOU.
Confidential 20