Melbana Energy Limited · ASX:MAY
Melbana Energy — MEO Australia — SEAAOC Conference 2010
19 slides from Melbana Energy's conference presentation, Sep 23, 2010
Slide 1: SEAAOC Conference
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
Slide 2: LNG demand – strong historical growth
LNG demand – strong historical growth Most forecasts suggest tripling by 2030 140 Asian Net Gas Imports China 120 100 80 Other 60 South Korea 40 Japan 20 Mtpa Source: BP Statistical Review 2009 0 1970 1975 1980 1985 1990 1995 2000 2005 • Market has evolved from Niche fuel Predominantly Japanese
Slide 3: ~25 Tcf of regional gas remains undeveloped
~25 Tcf of regional gas remains undeveloped Best quality resource is in production, remaining resources challenged Timor-Leste Evans Shoal-2 DST-1: 25 MMcfd 2500m DST-1A: 5.5 MMcfd 8% Abadi 10 Tcf Indonesia Greater 4% Australia Sunrise Barossa-1 % Barossa DST-1: <1 MMcfd CO2 Evans 16% DST-2: 30 MMcf
Slide 4: Cost of Carbon?
Cost of Carbon? A major challenge for undeveloped gas resources 4
Slide 5: CO2 emissions intensity
CO2 emissions intensity Projects must deal with carbon to achieve Environmental Approvals CSG gas gathering 875 km pipeline to Darwin Developed Developed Developed Developed Developed Developed Developed Devel’d Devel’d Gas production emissions intensity Drivers: • CO2 content in reservoir gas -
Slide 6: Geo-sequestration is an option
Geo-sequestration is an option Substantial initial capital costs and long term monitoring required • Substantial baseline and ongoing CO2 monitoring program • Economy of scale = large identified resources • Gorgon Project – an example of CO2 sequestration Gorgon CO2 Seismic Baseline Survey - 2009 So
Slide 7: Bio-sequestration is another
Bio-sequestration is another Emerging industries are building sequestration capability Origin Energy & BG Tree planting Algae Industry Pilot Plant • Origin Energy and BG contract for tree planting − Cost of $29 per tonne captured CO2 • GLNG Irrigation Project − Combined saline water disposal and car
Slide 8: Methanol production also sequesters CO2
Methanol production also sequesters CO2 And can sanitise gas with moderate CO2 content for LNG production Sequestration in companion Methanol plant 9% CO2 Feed Gas Example 74% of feed 67% of revenue LNG US$1.36bn/yr 480 mmscfd LNG Plant 3.0 Mtpa (at average 2006-present $ 4.5 Tcf, Japan LNG import p
Slide 9: Tassie Shoal Projects – an integrated approach
Tassie Shoal Projects – an integrated approach A modular hub ready for gas – with a wide quality tolerance range... Accommodation and Control Platform (ACP) Methanol Plant LNG Plant (5,000 tpd/1.75 Mtpa Stage 1 only) (3.0 Mtpa) (For CO2 sequestration) MEO 100% MEO 50%, Air Products 50% LNG Tank (170
Slide 10: Methanol plant – de-risking reservoir uncertainty
Methanol plant – de-risking reservoir uncertainty Uses a fraction of the gas resource required for an LNG plant 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 (
Slide 11: ~25 Tcf of gas seeking a regional solution
~25 Tcf of gas seeking a regional solution TSMP provide CO2 solution to unlock regional value Timor-Leste 2500m Abadi Indonesia Greater Australia Sunrise Barossa Evans Shoal Caldita Blackwood Joint Petroleum NT/P68 (100% MEO) Heron Development Evans Shoal-2 Area DST-1: 25 MMcfd DST-1A:Tassie Shoal 5
Slide 12: Implications of a regional solution
Implications of a regional solution The bulk of undeveloped gas resources could be commercialised >20 Tcf = 3.0 Mtpa LNG Plant = 1.75 Mtpa Methanol Plant Potential Gas Developed • Sufficient undeveloped gas within 150km of Tassie Shoal to support at least: − 5 x 1.75 Mtpa Methanol Plants; & − 4 x 3.
Slide 13: Tassie Shoal Methanol Project (TSMP)
Tassie Shoal Methanol Project (TSMP) Brings the gas processing plant to gas field – eliminating long pipelines Davy Process Technology M5000 Plant in Trinidad + = Methanol Plant on Concrete Gravity Structure (CGS) • Off-the-shelf technology • DPT, Arup & Aker Kvaerner designs ExxonMobil’s Adriatic L
Slide 14: Methanol Demand – China Only
Methanol Demand – China Only High forecast demand growth 25 Million tonnes per annum (Mtpa) 20 15 Fuels (direct use and additives) 10 5 Chemicals & other - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 11.8 x 1.75 Mtpa forecast Methanol Plants • Strong growth averages more than one 1.7
Slide 15: Timor Sea LNG Plant (TSLNGP) – no floating risks
Timor Sea LNG Plant (TSLNGP) – no floating risks “MEO plans smallest footprint 3.0 Mtpa LNG plant” 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 sel
Slide 16: Prelude and Greater Sunrise FLNG
Prelude and Greater Sunrise FLNG “Shell plans world’s biggest ship at Australian field” Source: http://royaldutchshellplc.com 16
Slide 17: Heron gas discovery – potential LNG size field
Heron gas discovery – potential LNG size field Studies used acoustic impedence on 3D seismic to model porosity High impedance at Early structure Heron-2 well bore conforms with 12,800,000 ==> 6% better porosity implies preservation due to gas charge Low impedance = possible better reservoir quality
Slide 18: Artemis–1: WA-360-P
Artemis–1: WA-360-P “~12 Tcf prospect, strategically located near existing/planned LNG projects” East Artemis Prospect (~12 Tcf) Songa Venus Multiple commercialisation options WA-361-P (MEO 50%) Pluto Project (4.5 Tcf) 1 train under construction Perseus Expansion needs gas North Rankin WA-360-P (MEO
Slide 19: Concluding remarks
Concluding remarks The pieces are coming together... • Proposed Tassie Shoal development hub Robust economic solution for all undeveloped gas TSMP sequesters CO2 into methanol derivatives LNG project approved for low CO2 gas • 100% equity in two NT/P68 gas discoveries Seeking partner to appraise