Origin Energy Limited · ASX:ORG
Origin Energy — Corporate Update (September 2011)
107 slides from Origin Energy's corporate update, Sep 19, 2011
Slide 1: ASX cover note: presentations attached
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 19 September 2011 From Helen Hardy Pages 107 Subject PRESENTATIONS Attached for your information are presentations being made at Origin’s Operational Review and Asset Visit from 19-20 September 2011
Slide 2: Origin Operational Review and Asset Visit
For personal use only Origin Operational Review and Asset Visit Presented by Grant King Managing Director 19-20 September, 2011
Slide 3: Operational Review and Asset Visit
Operational Review and Asset Visit Talinga Gas Processing Plant For personal use only • Site Tour: - Talinga Gas Plant, Gas Well, Reverse Osmosis Plant and Ponds • Presentations: - Welcome and Tour Overview – Grant King - Upstream and Talinga Gas Processing Plant – Paul Zealand - Environment and Com
Slide 4: The Origin Management Team & Site Tour Representatives
The Origin Management Team & Site Tour Representatives Managing Director Grant King For personal use only Executive Chief Executive Chief Chief Executive Director, Finance Officer, Energy Development Officer, Upstream and Strategy Markets Officer Paul Zealand Karen Moses Frank Calabria David Baldwin
Slide 5: APLNG is underpinned by a strong, aligned joint venture
APLNG is underpinned by a strong, aligned joint venture that combines Origin’s leading position in Australian CSG development and ConocoPhillips’ extensive LNG and CSG capabilities … For personal use only • Australia’s largest integrated • Integrated energy company • Integrated energy and chemical c
Slide 6: Upstream and Talinga Gas Processing Plant
For personal use only Upstream and Talinga Gas Processing Plant Presented by Paul Zealand Chief Executive Officer, Upstream Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 7: Origin responsible for upstream program for Australia Pacific LNG
Origin is responsible for the upstream program for Australia Pacific LNG leveraging Origin’s 14 years’ CSG production experience … For personal use only Origin and APLNG exploration and production permits in the Surat and Bowen basins … and addressing a high quality and diversified acreage position
Slide 8: APLNG has sufficient gas to underpin two trains
APLNG has sufficient gas to underpin two trains, with 3P reserves of 14,742 PJ and an additional 10,050 PJ of contingent resources … For personal use only APLNG Reserves and Resources Upstream Gas Production Costs Upstream Production Costs Train 1 Train 2 3C = 10,050 2C = 4,041 Lower unit Ramp and T
Slide 9: Acreage in both regions' sweet spots
Australia Pacific LNG holds acreage in both of the regions’ “sweet spots” – Spring Gully/Fairview and the Undulla Nose For personal use only • Australia Pacific LNG’s CSG position has the following characteristics: • Prime acreage in both Queensland CSG “sweet spots” of Spring Bowen Basin Gully/Fair
Slide 10: Production characteristics ranking alongside best US regions
The Spring Gully/Fairview and Undulla Nose regions have production characteristics ranking alongside the best producing regions in the US For personal use only Field Net Coal Gas Content Permeability Australia Spring Gully/Fairview ** *** *** Walloons - Undulla Nose *** ** *** Walloons - Eastern ***
Slide 11: Gas Plant construction sequence mirrors reservoir permeability
Gas Plant construction sequence mirrors reservoir permeability Surat Simplified CSG Permeability For personal use only Key Unconventional Phase 1B Reservoir Characteristics Phase 2 • Net coal • Gas content/Saturation • Permeability • Natural Fracture Networks • Rock Strength Numbers represent (”frac
Slide 12: CSG – Production History
CSG – Production History 120 For personal use only Non Operated Fields: Spring Gully Spring Gully Spring Gully Talinga Phase 1&2 Phase 3&4 Phase 5 & 6 Phase 1 Fairview. 100 47 PJ/a. 12 PJ/a APLNG share Kenya. 30 PJ/a. 12 PJ/a APLNG share 80 Talinga 60 Kenya PJ/a Denison Trough Spring Gully 40 Peat M
Slide 13: Talinga Gas Processing Plant
For personal use only Talinga Gas Processing Plant
Slide 14: The Talinga Gas Processing Plant
The Talinga Gas Processing Plant For personal use only 9|
Slide 15: Darling Downs Power Station Pipeline
Darling Downs Power Station (DDPS) Pipeline - Wallumbilla to DDPS via Talinga For personal use only • 205 km and potentially up to 400 TJ per day to Darling Downs Power Station • Pipeline installed and commissioned with low pressure gas 10 |
Slide 16: Key Infrastructure/Facilities on APLNG properties
Key Infrastructure/Facilities are located on APLNG properties Turinga and Rockwood For personal use only 11 |
Slide 17: Talinga Construction
Talinga Construction For personal use only 12 |
Slide 18: Talinga Rehabilitation
Talinga Rehabilitation For personal use only The above images illustrate the rehabilitation efforts to reinstate the environment in areas where wells have been installed 13 |
Slide 19: New Generation Drilling Rigs
New Generation Drilling Rigs For personal use only Savanna Drill Rig 406 14 |
Slide 20: Design Evolution – Compressors
Design Evolution – Compressors Spring Gully • Spring Gully has a 4 stage Talinga Spring Gully reciprocating compressor Talinga For personal use only model: - Vibration - No flexibility to inlet conditions • Talinga has a combination of screw & reciprocating compressors: - No vibration - Large range
Slide 21: Design Evolution – Water Treatment Plants
Design Evolution – Water Treatment Plants Spring Gully • Spring Gully had the Talinga Spring Gully first Reverse Osmosis Talinga For personal use only (RO) for CSG • Spring Gully completed the first creek discharge • Spring Gully water is also used for irrigation (Pongamia) • Talinga applied Lessons
Slide 22: Design Evolution – Ponds
Design Evolution – Ponds Spring Gully Talinga Spring Gully Talinga For personal use only • Spring Gully has had very little flexibility between ponds • Talinga has transfer and flexibility between most ponds • Spring Gully’s ponds are clay lined • Talinga’s ponds are HDP lined and are of a higher sp
Slide 23: Design Evolution – Wellheads
Design Evolution – Wellheads Spring Gully Talinga Spring Gully • Spring Gully’s Talinga For personal use only wellheads have: - No automation - 1 operator per 15 wells - Slow install (6 welds) - Hydra pack with oil and service requirements - Flexi hose which results in high maintenance requirements
Slide 24: Operations Capability
Operations Capability • Production capacity was doubled in 14-15 months For personal use only • Jobs were sourced through local labour • Manning and automation will be minimised with central control S Integrated Operations Centre, Brisbane • APLNG’s upstream operations have internal support capabili
Slide 25: Thank you
For personal use only Thank you
Slide 26: Environment and Community
For personal use only Environment and Community Presented by Ken Horton Group Manager Corporate Affairs, Upstream Qld & CSG to LNG Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 27: Proven track record in conventional operations and CSG
Origin has a proven track record in conventional operations and CSG developments … For personal use only • Origin and predecessor companies have been operating successfully in the Surat Region for 40 years • Origin drilled its first CSG well in 1993 and has been producing CSG since 1997 – we are bui
Slide 28: Comprehensive regulatory regime underpins CSG to LNG projects
A comprehensive regulatory regime underpins CSG to LNG projects For personal use only EIS Environmental, social and economic impact assessment State Federal Coordinator General Report Gas Fields Pipeline LNG Facility Environmental and social impacts LNG Facility Approval Approval Approval Conditions
Slide 29: Water Issues
Water Issues For personal use only • Impact on the Great Artesian Basin • Impact on farmers‟ bores • Gas migration • Fraccing • Salt 4|
Slide 30: CSG to LNG industry operates in small proportion of the GAB
The CSG to LNG industry operates in a small proportion of the overall Great Artesian Basin (GAB) For personal use only Location of CSG projects The Surat Basin is a sub basin of the Great Artesian Basin 5| Source: After Radke et al, 2000
Slide 31: Water produced compared with other users and GAB recharge
Water produced by the industry (on average over 40 years) will be about half the amount taken by other users (in perpetuity) and is small compared to the annual recharge of the GAB For personal use only GAB and Surat Basin water figures Estimated annual water levels (ML) Typical annual water product
Slide 32: Coal seams separated from aquifers by hard rock
The coal seams are separated from the aquifers by layers of hard rock - and the aquifers are monitored comprehensively For personal use only In our operating areas: Water bore – typically 50-100 • We take water from the coal measures metres deep • Others take it mainly from the shallow aquifers • Th
Slide 33: Gas has a long history appearing in Surat Basin water bores
Gas has a long history in the Surat Basin of appearing naturally in water bores For personal use only Extract from vineyard promotional materials The ‘flaming bore’ on 60 Minutes and 4 Corners in Roma, circa 1905 Historical State Government records clearly report natural gas in many bores and in all
Slide 34: 'Make good' obligations for impacted bores
In the limited number of cases where operations impact on nearby bores we are obliged in advance to “make good” that impact For personal use only • All CSG to LNG projects are required to APLNG planned in its EIS for ~300 wells to make good any bore that has more than a 5 be ‘made good’ – we now est
Slide 35: Fraccing may be used to enhance flow of fluids
In some areas where permeability of the coals is low, the process of fraccing may be used to enhance the flow of fluids … For personal use only • Hydraulic Fracture stimulation or „fraccing‟ is a method to increase flow of gas and extract gas more efficiently from the coal seam • „Fracs‟ are placed
Slide 36: Fraccing fluid composition
Over 97% of the fraccing fluid used is water with a further 2% a salt and minor concentrations of other common household additives For personal use only 11 |
Slide 37: CSG to LNG industry salt production
The CSG to LNG industry will produce broadly the same amount of salt produced by other users • All our produced water will be treated For personal use only with Reverse Osmosis (RO) • Currently more than 90% of the water treated by RO becomes clean and usable - expected to rise to 97.5% as the Indic
Slide 38: Impacts on farmers, land-use and local communities
Impacts on farmers, land-use and local communities For personal use only • Reaching agreement with landholders • Impact on high quality agricultural land • Improving infrastructure • Community engagement 13 |
Slide 39: Agreements with farmers without going to Land Court
Origin has reached around 600 agreements with farmers - without going to Land Court For personal use only • Landowners do not own resources underneath their land – these belong to the State • Origin respects the rights held by landowners – and always seeks to work with them • Origin has so far acces
Slide 40: Limited impact on Good Quality Agricultural Land
Our operations will have limited impact on Good Quality Agricultural land or on the agricultural production of the land we buy For personal use only Increasing the agricultural productivity of our owned land • APLNG will affect about 7% • We will make improvements on many of our owned of Good Qualit
Slide 41: Investment in infrastructure and community programs
We will invest substantially through a mix of infrastructure investment and long running community programs For personal use only Operational Social impact Community investment - $50m 2011-2015 management needs spending with direct i.e. as required community by conditions impact (make good Social Vo
Slide 42: Extensive ongoing stakeholder engagement
Origin has extensive ongoing engagement with stakeholders across the social environment • We are looking well into the future to ensure our impacts are For personal use only understood and integrated into strategies towards delivering a sustainable project while supporting regional communities • Lon
Slide 43: Engagement processes with proponents, Government and NGOs
Engagement processes with other proponents, Government, key NGO‟s and Stakeholders are now firmly established and functioning well For personal use only • An Industry Leadership Group has been established by all 4 CSG to LNG proponents to consider key issues and cumulative impacts – 8 working groups
Slide 44: For personal use only
Water bore – typically 50-100 metres deep For personal use only Avg 100- Coal 250 measures metres of hard rock System of monitoring bores both in the aquifers near the coals and in the aquifers nearer the surface Aquitards – shales and Aquifers - layers of mudstones hard fine - porous rock that rock
Slide 45: Thank you
For personal use only 20 | Thank you
Slide 46: Energy Markets
For personal use only Energy Markets Presented by Frank Calabria Chief Executive Officer, Energy Markets Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 47: East coast energy markets deregulation and consolidation
Energy markets on the east coast of Australia have undergone a process of deregulation, privatisation and consolidation Electricity Generation Energy Retail For personal use only MW Origin’s Generation Portfolio Origin’s Retail Portfolio 6,000 5,000 5,000 Under Construction Electricity Customer Numb
Slide 48: Australian wholesale energy markets exhibit high volatility
Australian wholesale energy markets exhibit high volatility … Volatility in the National Electricity Market 2,000 2,000 For personal use only Tightness in the 1,500 supply/demand 1,500 Pool Price ($/MWh) balance drives Large quantities of wind • Prices in the wholesale 1,000 extreme high 1,000 in SA
Slide 49: Origin's generation portfolio offers considerable flexibility
Origin’s generation portfolio offers considerable flexibility … For personal use only Origin’s Peak Electricity Demand and Supply 12,000 • Origin can meet a large portion of its 10,000 retail demand through its installed Contract generation capacity or Spot Installed Market Generation • Significant
Slide 50: Diversity of operating modes and rapid ramp-up
Diversity of operating modes, from base load through to intermediate and peaking, provides the ability to ramp to full load rapidly … For personal use only Origin’s Generation Operating Modes Origin’s Generation Ramp-Up 6,000 6,000 5,000 5,000 4,000 4,000 Capacity (MW) 3,000 3,000 2,000 2,000 1,000
Slide 51: Access to diverse fuel sources
Access to diverse fuel sources enables Origin to optimise its energy supply portfolio For personal use only Interchangeability of Fuels 3,000 Catalysts that drive fuel-switching: • Electricity market prices • Spark spread between fuels Capacity (MW) 2,000 • High supply from intermittent generation (
Slide 52: Australian energy prices set to increase
Australian energy prices are set to increase as networks are upgraded, carbon is priced, and domestic fuel prices approach export parity PJ PJ/a Origin 2011 and Sources FuelUses Supply/Demand of Fuel For personal use only Generation Carbon Intensity1 300 Third Party Brown Coal Contracts 250 Origin J
Slide 53: Darling Downs Power Stations
For personal use only Darling Downs Power Stations Presented by Bill Renshaw Asset Operations Manager Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 54: Background
Background For personal use only • Darling Downs Power Station site purchased with Sun Retail acquisition in February 2007 • Site purchased with approval for a 510 MW open cycle peaking power plant • Origin modified approval to a 640 MW base load combined cycle plant • Amended Development Approval g
Slide 55: Site Location
Site Location For personal use only • Located at Braemar, approx. 40km West of Dalby • Opposite Powerlink 330kV/275kV substation • Strategic site location due to proximity to gas and electricity infrastructure 10 |
Slide 56: Site Details
Site Details For personal use only • Site area 40.5 Ha • Site originally re-growth scrub • Site operating area cleared • Balance of site left uncleared as buffer zone 11 |
Slide 57: Plant Construction
Plant Construction For personal use only • Plant constructed by a consortium of General Electric and CH2MHill • Construction commenced in 2007 • Commissioning commenced in 2009 • Commercial operation on July 1, 2010 12 |
Slide 58: Key Design Features
Key Design Features For personal use only • 3 x 9E gas turbines (GT) (~120 MW each) + 280 MW steam turbine – Proven, unitised => high reliability – 280 MW steam turbine capacity includes use of duct firing • Duct fired heat recovery steam generators (HRSGs) (~100 MWe) – Effective redundancy for 1 GT
Slide 59: Operations and Staffing
Operations and Staffing For personal use only • Cycling Base Load Operation – Continuous operation – Load to suit gas and electricity market requirements • 35 Staff – 24/7 shift coverage, 4 operators per shift – Small maintenance team on day work – Small engineering team on day work – Management and
Slide 60: Noise and Emissions Mitigation
Noise and Emissions Mitigation For personal use only • Extensive noise attenuation – GT generators fully enclosed – GT and ST hall sound insulated – ST bypass valves enclosed – BFW pumps enclosed – Low noise ACC fans • Dry low NOx (DLN) combustors on gas turbines 15 |
Slide 61: Water and Wastewater
Water and Wastewater For personal use only • Water Supply from onsite bore – Onsite bore from Hutton Aquifer • Air cooled condenser – Water consumption 2% of typical coal fired plant • Water recycling – Boiler blowdown re-treated – Demin plant reject re-treated • Wastewater – Wastewater removed from
Slide 62: Thank you
17 | For personal use only Thank you
Slide 63: APLNG Project Overview
For personal use only APLNG Project Overview Presented by David Baldwin Chief Development Officer Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 64: APLNG is underpinned by a strong, aligned joint venture
APLNG is underpinned by a strong, aligned joint venture that combines Origin‟s leading position in Australian CSG development and ConocoPhillips‟ extensive LNG and CSG capabilities … For personal use only • Australia‟s largest integrated • Integrated energy company • Integrated energy and chemical c
Slide 65: APLNG achieved major milestones; Final Investment Decision
APLNG has achieved major milestones during the year … State and Federal approvals of Environmental Impact Statement For personal use only Binding agreement with Sinopec for 20-year 1-train LNG off-take agreement and Sinopec was issued 15% equity in APLNG Completion of front-end engineering and
Slide 66: Construction underway on first phase of $20 billion project
Construction is underway on the first phase of a $20 billion project … For personal use only Key Highlights • 65,000 ha of land area • 2 x 40 Ml water treatment plants • 1,200+ easements for wells and pipeline • 2 x 4.3 mT/y LNG liquefaction trains • 1,000+ production wells • 2 LNG storage tanks • 3
Slide 67: APLNG project delivered by Origin and ConocoPhillips
The APLNG project is being delivered by Origin and ConocoPhillips For personal use only UPSTREAM OPERATOR DOWNSTREAM OPERATOR 5|
Slide 68: Origin is Australia's largest CSG producer
is Australia‟s largest CSG producer For personal use only • Leverages Origin‟s 14 years‟ CSG production experience • High value and high productivity fields prioritised for ramp-up period • Experience with local community, State and Federal Authorities • Non Operated interests with both Santos and Q
Slide 69: ConocoPhillips has years of LNG project experience
has 40 years of LNG project experience For personal use only • ConocoPhillips has 25 years experience in CSG and 40 years experience in LNG production • ConocoPhillips and Bechtel formed a global LNG Collaboration in 1996 • The collaboration centre is staffed by employees from both companies and uti
Slide 70: Integration of sub-projects
The APLNG project involves the integration of 7 sub-projects … For personal use only Gas & LNG plant, Drilling Gathering Water Pipelines Electric Water tanks & Facilities terminal 8|
Slide 71: Risks allocated to party best able to manage them
… each executed in a manner which appropriately allocates risks to the party which can best manage them … For personal use only … and in so doing, optimises development flexibility Gas & LNG plant, Drilling Gathering Water Pipelines Electric Water tanks & Facilities terminal Pre-FEED & Origin Origin
Slide 72: Risk allocation and mitigation status
Risks have been allocated to, and are Cost/schedule risk mitigated being managed by the party best able Cost/schedule risk mostly mitigated to do so For personal use only Cost/schedule risk partially mitigated Cost/schedule risk with APLNG Gas & LNG plant, Drilling Gathering Water Pipelines Electric
Slide 73: Leveraging CSG experience executing Upstream scope
Origin is leveraging 14 years of CSG experience in executing the Upstream scope … For personal use only Forecast suggests wells scouted will be more than 500 by end 120 December 2011 600 543 100 500 Wells Scouted - Cumulative Wells Scouted - Monthly Lease acquisition 80 400 400 Target of 60 400 well
Slide 74: Execution risk is appropriately managed
Execution risk is appropriately managed … For personal use only • Industry leaders engaged for all key contracts and services of the project Strong Management • Broad resourcing channels to obtain quality people with specialised skills and Quality Teams • Integration and interfacing team established
Slide 75: APLNG Project – Upstream Project Delivery
For personal use only APLNG Project – Upstream Project Delivery Presented by Janet Hann General Manager, APLNG Delivery Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 76: Upstream Project Goals
Upstream Project Goals For personal use only 1 • Health and Safety • Zero Harm 2 • Environment and Land • Honour our Commitments 3 • Safe & Operable Production System > 1,900 TJ/d 14 |
Slide 77: Upstream Project Goals
Upstream Project Goals For personal use only 4 • Project within schedule and budget • PMO has developed estimating, planning, measuring and forecasting tools and scorecards 5 • Team effectiveness • Indicator of future project performance 15 |
Slide 78: Drilling
Drilling For personal use only • Drilling and completions managed like a manufacturing process • Small improvements make large impacts due to large well count • Leverage cost reduction through technology and scale • Hybrid coiled tubing and automated drilling rigs • Zero to minimal lease constructio
Slide 79: Phased Development
Phased Development For personal use only • Phase 1: 5 years of gas plant and pipeline construction, drilling and completion of ~1,000 wells • Phase 2 : ~20 years of ongoing drilling ~8,000-9,000 wells, well completion and construction of gathering networks (2 trains, over 30 years, excluding technol
Slide 80: Rig Requirements
Rig Requirements For personal use only Total Drilling Rigs Requirements 5.0 1200 4.0 1000 Drilling Rigs 800 3.0 600 2.0 400 1.0 200 0.0 0 Total Completion Rigs Requirements 6.0 1200 5.0 1000 Completion Rigs 4.0 800 3.0 600 2.0 400 1.0 200 0.0 0 18 |
Slide 81: Gathering Opportunities
Gathering Opportunities For personal use only • Budget estimate based on Contractor Involvement (design competition) • Wellhead separators from Offshore Module Yard (competitively tendered unit rates) • Opportunities to learn from improved construction techniques and design : • APLNG assumes 100% tr
Slide 82: Gas Plant: Simple and Repeatable
Gas Plant: Simple and Repeatable For personal use only 85 TJ/d Gas Processing Facility Train • Improved design has significantly reduced footprint • >90% offsite fabricated/pre-assembled (based on tonnage) 20 |
Slide 83: Condabri Development
Condabri Development Camps Water Camps Camps For personal use only Treatment Facility & Gas Plant Feed Pond Vegetation Switchyard Buffer Brine Ponds Q100 Flood Limit 21 |
Slide 84: Electrification
Electrification 132 kV Network For personal use only Data pack submitted to Powerlink 275 kV NRP Stage 1 & 2 Project approved by Minister and Board of Powerlink. Committed project status. Stage 2 final EIS Terms Of Reference published Roma 132 kV to Tarong ` 132kV Load Management Scheme Load support
Slide 85: Pipelines Development
Pipelines Development • Mainline Pipeline Contract (MPC) For personal use only - Large diameter High Pressure Gas Network (HPGN) (~120 km of the HPGN) - EPC (including HPGN Design) - Awarded to MCJV on Early Contractor Involvement (ECI) basis - Sequential construction plan - Final price submission 3
Slide 86: Water Solutions - Base Case
Water Solutions - Base Case • Treatment of 100% of produced water through Reverse Osmosis (RO) and brine For personal use only concentration (using Multiple Effects Distillation (MED) technology) • Pulsed discharge to rivers to match natural flow patterns • Irrigation (as parallel option to river pu
Slide 87: Land Access
Land Access For personal use only • Land Purchase for Major Facilities • Of the 10 properties required, APLNG owns 9 • Final property (Combabula Gas Plant) to have access via lease arrangement, initial negotiations have commenced – awaiting final constraints analysis and site selection. This propert
Slide 88: Compressors in Germany
Compressors in Germany For personal use only 26 |
Slide 89: Fabrication Yards in Thailand
Fabrication Yards in Thailand For personal use only 27 |
Slide 90: Summary
Summary For personal use only • Reserves certainty • Great deliverability from sweet spots • Drilling and well design • Low & high pressure, gas and water pipelines • Gas and water treatment plant designs • Power supply • Focus on modular, repeatable, flexible, safe and economic solutions • Focus on
Slide 91: APLNG Project – Curtis Island (Downstream Project)
For personal use only APLNG Project – Curtis Island (Downstream Project) Presented by David Baldwin Chief Development Officer Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 92: Gladstone and Curtis Island
Gladstone and Curtis Island For personal use only 30 |
Slide 93: Gladstone and Curtis Island
Gladstone and Curtis Island For personal use only 31 |
Slide 94: APLNG Facility Site
APLNG Facility Site For personal use only 32 |
Slide 95: APLNG Community Centre
APLNG Community Centre For personal use only 33 |
Slide 96: Thank you
34 | For personal use only Thank you
Slide 97: APLNG, Phase 1 Implementation – Downstream
For personal use only APLNG, Phase 1 Implementation – Downstream Presented by David Hayter Deputy Project Director, Downstream Project Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 98: Curtis Island designated as an LNG precinct
Curtis Island has been designated as an LNG precinct with the full support of the State and Federal governments For personal use only 36 |
Slide 99: Liquefaction of natural gas is an established technology
Liquefaction of natural gas is an established technology, with project design based on the Darwin LNG project which has operated since 2006 For personal use only • In an LNG plant, CSG is cooled to -161oC causing it to condense and liquefy, ready for transportation by ship 37 |
Slide 100: ConocoPhillips Optimized Cascade technology used worldwide
ConocoPhillips Optimized Cascade® technology has already been utilized extensively across the world … For personal use only Kenai Egyptian Sabine Pass Atlantic (Trinidad) Brass (Nigeria) All 3 East Coast LNG plants Under Development Equatorial Guinea are on Curtis Island Angola Darwin Queensland Cur
Slide 101: APLNG's contracting strategy
APLNG‟s contracting strategy provides the optimum level of flexibility and cost management For personal use only APLNG Project Contracting Development Phase Execution Phase Operations Contractable Packages Engineering/ Site Engineering Procurement Modularization Fabrication Transportation Commission
Slide 102: Leveraging ConocoPhillips and Bechtel technology and experience
APLNG will leverage the technology and experience of ConocoPhillips and Bechtel in project delivery and design For personal use only • ConocoPhillips and Bechtel Global formed a Global LNG Collaboration in 1996 • The collaboration centre is staffed by employees from both companies and utilises Conoc
Slide 103: Modularisation Strategy
Modularisation Strategy For personal use only • Development of the Gladstone LNG Industry precinct will have many projects competing for limited Australian labour • A significant modularisation program is planned to move labour offshore, reducing risks in the Downstream project • Fabrication yards h
Slide 104: Dredging Works by Gladstone Port Corp
Dredging Works by Gladstone Port Corp (GPC) For personal use only • Two Work Packages: o Early Works (Civil – quarry, haul road, and bund wall to build reclamation area) o Main Works (Dredging and Disposal for LNG) • GPC will be the counterparty to both EPC contracts • LNG Proponents will fund the p
Slide 105: Shipping
Shipping For personal use only • The delivery point for the LNG sales contract with Sinopec is at APLNG‟s wharf (i.e. sales are on a FOB basis). As such, all shipping risk remains with Sinopec to transport the LNG from Gladstone to the re- gasification facilities in China • LNG from APLNG will be di
Slide 106: Origin assurance processes around the LNG Downstream Project
Origin assurance processes around the LNG Downstream Project Execution For personal use only • Working with shareholders through the APLNG JV structure and its various sub-committees to provide direction and support to the Strategise project team • Continuous engagement between operator and sharehol
Slide 107: Thank you
45 | For personal use only Thank you