Melbana Energy Limited · ASX:MAY
Melbana Energy — 4th Australasian Energy Pacesetters Conference 2010
17 slides from Melbana Energy's conference presentation, Aug 3, 2010
Slide 1: Timor Sea GTL Venture Development
Timor Sea GTL Venture Development 4th Australasian Energy Pacesetters Conference Perth, 3 August 2010
Slide 2: What is GTL?
What is GTL? Resources to Revenue Gas to Liquids (GTL): • A process for converting gaseous hydrocarbons to liquids in order to make their development and long distance transportation economic. Timor-Leste 2500m Abadi 10 Tcf Indonesia Gas Australia Barossa Greater Liquids Sunrise Evans CO2 Shoal Pie
Slide 3: Resource commercialisation considerations
Resource commercialisation considerations CO2 is a challenge 30 Uneconomic (unless blended) 25 20 CO2 Content (%) Gorgon Uneconomic Field 15 (unless combined) Gorgon CO2 sequestration 10 Project NWS 5 Project Conventional LNG Plants 1 2 3 4 5 6 7 8 9 10 Recoverable Hydrocarbon (Tcf)
Slide 4: CO2 emissions intensity
CO2 emissions intensity a significant hurdle for new projects • Primary driver is CO2 content in reservoir gas, secondary driver is plant efficiency • Gas production and transportation to LNG plant is hidden challenge • Gorgon is only project with CO2 sequestration planned, Snohvit benefits from
Slide 5: Options for dealing with CO2
Options for dealing with CO2 • Geo-sequester (re-inject) • Bio-sequester – Trees (offset emissions) Geosequester – Algae (consume emissions) • Chemical-sequester – Methanol • Regulatory relief Remove and vent Plant Trees Grow algae for oil & protein Carbon Dioxide Methanol
Slide 6: The CO2 Methanol Story
The CO2 Methanol Story high school chemistry Recycle 3 1 Carbon CO2 Hydrogen Water Methane Steam Syngas Monoxide Step 1 - Gas Reforming Carbon Monoxide Hydrogen Methanol 4 Legend = Hydrogen • Step 2 - Methanol Synthesis = Carbon Methane CO2 Steam Methanol 3
Slide 7: Methanol – a viable sequestration option
Methanol – a viable sequestration option a solution for high CO2 gas 30 Uneconomic (unless blended) 25 2 Methanol Plants 1 Methanol Plant 3 Mtpa LNG + 1 Methanol Plants 20 CO2 Content (%) 3 Mtpa LNG + 2 Methanol Plants 15 10 CO2 sequestration Uneconomic 5 (unless combined) Conventional LNG Plants 1
Slide 8: Sequestration in companion Methanol plant
Sequestration in companion Methanol plant 9% CO2 Feed Gas Example 74% of feed LNG LNG 74% of Revenue 480 mmscfd 4.5 Tcf, Plant 3.0 Mtpa (@ US$10/mmBTU LNG price) 9% CO2 CO2 (20 years supply) Methanol Methanol 26% of Revenue 170 mmscfd Plant 1.75 Mtpa (@ US$310/tonne Methanol price = 26% of feed ener
Slide 9: Methanol prices track oil with considerable cyclic upside
Methanol prices track oil with considerable cyclic upside Methanol Correlation with Oil Price US$/tonne methanol per US$/bbl WTI 800 160 12 700 140 10 600 120 APCP US$/tonne WTI US$/bbl 500 100 8 400 80 6 300 60 4 200 40 Energy Equivalence 2 100 20 0 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2001
Slide 10: Methanol price relative to LNG
Methanol price relative to LNG LNG ($/mmBTU) range of values comparable to LNG 9% CO2 Feed Gas Example Source: Oil Search Limited, MD’s Presentation, 2009 Annual Meeting, May 2009, MEO analysis
Slide 11: Established Markets: China is the growth market
Established Markets China is the growth market 140 50 Asian Net Gas Imports China World Methanol Demand 120 40 100 China 30 80 Other 60 20 South Korea 40 Rest of World Japan 10 20 Mtpa Mtpa Source: BP Statistical Review 2009 Source: ICI & MMSA 0 0 1970 1975 1980 1985 1990 1995 2000 2005 1965 1970 19
Slide 12: Location Map and Water Depth
Location Map and Water Depth MEO’s Timor Sea discoveries and projects NT/P 68 Blackwood East Blackwood Blackwood 1 Evans Shoal South 1 Tassie Shoal Heron Heron 2 N Heron 1 Original Permit Boundary WATER DEPTH MAP (derived from 2D Seismic data) 0 500m
Slide 13: Timor Sea GTL Venture Development
Timor Sea GTL Venture Development ready for confirmed gas supply • Preliminary design and environmental approvals complete • Ready to proceed rapidly to development once gas supply confirmed Accommodation and Control Platform (ACP) LNG Plant Methanol Plant 3.0 Mtpa 1.75 Mtpa LNG Tank (170,000 m3)
Slide 14: LNG Plant - Proven Technology
LNG Plant - Proven Technology sensible combination Conventional Concrete and Steel LNG Tanks Conventional Concrete Gravity Based Structure • One 3.0 Mtpa module • 170,000 m3 LNG storage • Arup, Air Products and Worley Air Products 3.0 Mtpa LNG Arup self-elevating platform Parsons designs and costing
Slide 15: Methanol Plant - Proven Technology
Methanol Plant - Proven Technology located near gas source and LNG plant Davy Process Technology M5000 Plant in Trinidad + = Methanol Plant on GBS • 1.75 Mtpa methanol production • Davy Process Technology, Arup and Aker ExxonMobil’s Adriatic LNG Re-gas Terminal Kvaerner designs
Slide 16: Timor Sea GTL Venture Development
Timor Sea GTL Venture Development • Close to gas source - reduces distance challenge • Grounded in shallow water - removes movement challenge • Modular construction - minimises development cost • LNG and Methanol - manages CO2 challenge • Proven technology - reduces implementation risk • Mature desi
Slide 17: Disclaimer
Disclaimer This presentation includes certain forward-looking statements that have been based on current expectations about future acts, events and circumstances. These forward-looking statements are, however, subject to risks, uncertainties and assumptions that could cause those acts, events and ci
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