11th Annual
Liquefied Natural Gas
Venue:
Organiser:
Web link:
E-mail:
Description:
Worldwide Supply, Demand, Shipping, and Price Outlook;
Potential for North American Export and Use
February 16-17, 2012 * The Westin Oaks, Houston, TX
Day One – Thursday, February 16, 2012
7:15
Conference Registration and Continental Breakfast
8:15
Chairman's Welcome and Opening Remarks
8:30
Worldwide Supply and Liquefaction Outlook
*
Outlook for Australia, Africa, Middle East production/liquefaction
- 18 billion cu. ft. of projects in development; looking for buyers
- cost of developing liquefaction
- CBM conversion -- high priced
*
Russian and Central Asian outlook
- LNG vs. pipeline projects
- Yamal, Vladivistok, Sakhalin, Shtokman
*
Shale gas – How much will it affect the LNG market long term?
-> real production potential
o North America
o Worldwide – China, Poland, Latin America
-> competition with LNG vs. conversion of shale to LNG
9:15
North American Export Potential
-
How feasible is export from Canada and the US?
* National export licenses\
-> Canada – show it’s in the national interest and would not create hardship
* Local permits
-> drilling permits -- concern about additional drilling
-> facilities permits
-> state and local environmental review
* Political support vs. resistance
-> BC government supporting and fast-tracking -- Premier wants 3 export terminals by 2020
-> AGA resistance in US
* Cost to build liquefaction
* Need to re-negotiate complicated existing upstream and terminal contracts
* Need to secure dedicated upstream supply and downstream purchase contracts
* Financing – Contracts required in order to finance
-
Potential effect on North American gas market
-
Competition with Australia for Asian market
-> Cost of shipping from US Gulf Coast higher
-
Potential to export from Eagle Ford to Mexico
10:00
Networking & Refreshment Break –
Sponsorship Opportunity
10:30
Status of North American Liquefaction Projects
-
Kitimat -- Apache, EOG Resources, EnCana
* Purchase of Pacific Trail Pipelines Ltd.
-> 287 miles, 36” underground
-> linking to Spectra’s gas processing complex at Summit Lake
* FEED contract awarded
* MOU with Korea Gas and Gas Natural
-
British Columbia LNG Export Cooperative -- Hisla First Nation and LNG Partners, Houston
12:00
Luncheon --
Sponsorship Opportunity
1:15
Outlook for Small to Medium-Sized Liquefaction/Supply
-
Caribe to export from US in small quantities
* using cylinders
* tractor trailer to ship
* could purchase from peakers
* FERC issues
-> does dock become a FERC facility?
-> who deals with dock owner – owner, exporter, utility?
* Pacific Rubiales to export from Colombia to the Caribbean
-> from Puerto Bahia oil and LNG depot, bunkering, and storage facility
* EWC in Asia
2:30
Construction Costs – Liquefaction and Regas
-
How can they be contained?
3:00
Networking & Refreshment Break –
Sponsorship Opportunity
3:30
Global Demand Outlook
-
Impact of Japan nuclear disaster on worldwide gas demand
-> hesitation to support nuclear development, extension
-> short and long-term impact
-
European demand – Fulfilled by LNG vs. pipeline
-
Asian demand – Differences between Japan, Korea, China, India
-
Latin American and emerging market demand
4:00
Potential for an LNG Market in North America
-
Coal-to-gas switching -- Power plant conversion
-> environmental requirements outlook
-> cost to switch vs. upgrade to meet environmental regulations
-
Natural gas vehicles – Fleet, tractor trailer
-> size of market
-> infrastructure investment requirements
-> Nat Gas Act of 2011 (H.R. 1380)
-
Marine – Ships, ferry boats, tugs
-> $10 vs. $30 full production cost
-> C&I load – 5 billion gals diesel/year
-> trucking – 2/3 of market
-> diesel not connected to gas grid
-> 300-400 facilities must be built to get 10% of diesel market
-
Status of NGV conversion projects
* Clean Energy received $300mn to build 100 stations
* Heckmann Water Resources
-> building 200 water trucks in US
-> LNG from EnCana Natural Gas
-> Costa 20-40% less than gasoline or diesel
-> EnCana to build its first public LNG fueling station in Shreveport, LA
* Shell to start adding facilities for trucks in western Canada
5:00
Close of Day One
5:00-6:00
Networking Cocktail Reception –
Sponsorship Opportunity
Day Two -- Friday, February 17, 2012
7:45
Continental Breakfast
8:15
Chairman's Review of Day One
8:30
Latin America Import Projects
-
Caribbean – Puerto Rico, Martinique
-
Argentina – 2nd LNG facility in Escobar, north of Buenos Aires
-> ENARSA SA and YPF SA
-> Excelerate Energy
9:45
Networking & Refreshment Break –
Sponsorship Opportunity
10:15
Pricing Trends – Regional, Long-term and Spot
-
Outlook for Asian prices – Japan vs. China
-
Continental European gas markets moving toward hub-based from oil-linked
-
UK historical peakiness now flattening
-
How South America prices LNG
-
Pricing out of North America – Different models
* oil indexed contract or Henry Hub?
* position of exporter
* position of Asian buyer
-> how does delivered price compare to traditional suppliers
-> long-term contract priced from tailgate of liquefaction plant or supplier
-
Re-export terminals have contributed to market flexibility
-
Spread between spot and term, WTI and Brent
-
Flattening of summer/winter arbitrage
11:15
Changes in Shipping
-> challenges in securing shipping
-> day rates doubled
-> contracting for maximum value
-> impact on prices, flow of trade
-> Will tightness remain post 2011-12?
-> Will there be surplus by mid-decade?
-> Excelerate ordered for spot cargoes
-> FPSOs
-> Floating liquefaction
-> FSRUs can use older tonnage
12:00
Close of conference
