Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
LNG FUELING SYSTEMS AND LOGISTICS
NATURAL GAS POWER FOR SHALE DEVELOPMENT USING NATURAL GAS POWER FOR DRILLING AND HYDRAULIC FRACTURING
SEPTEMBER 5, 2013
Conceptual, Confidential and Proprietary 1
http://www.youtube.com/watch?v=Ahg6qcgoay4
Agenda
2
• Introduction to Prometheus
• Natural Gas Fueling from LNG
- Opportunity Drivers
- LNG Fueling Logistics
- Why LNG Fueled Drilling
- Why LNG Fueled Fracturing
Who is Prometheus Energy?
SPECIALIZING IN NATURAL GAS FUEL SUPPLY SOLUTIONS VIA LIQUEFIED NATURAL GAS (LNG)
3
• Formed in 2009 – predecessor company a liquefaction technology play
• Headquartered in Houston, Texas • Operate today in US & western Canada • Offer vertically integrated LNG solutions with a
focus in the oil and gas, mining, power and process sectors
• An on-going, fundamental commitment to Quality, Health, Safety & the Environment
• Privately held--Major Shareholders: - Shell Technology Ventures Fund 1 BV (June, 2009) - Black River Asset Management (September, 2008)
Prometheus Energy’s Turnkey Solution
Natural Gas Out
LNG Fuel Supply - Transportation - Logistics
Portfolio of Onsite LNG Equipment - LNG storage & regasification
LIQUID
LNG Fueling for: • Drilling Rigs • Frac Spreads • Mine Haul • Process Heat • Power
4
Natural Gas In
Liquefaction - LNG supply network
located throughout North America
- Access to 350k gpd capacity
BUSINESS CONFIDENTIAL
We bring a turnkey LNG supply-chain for remote natural gas
Why natural gas? A wide and sustained NG-Diesel spread
5
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
Mar
-97
Mar
-98
Mar
-99
Mar
-00
Mar
-01
Mar
-02
Mar
-03
Mar
-04
Mar
-05
Mar
-06
Mar
-07
Mar
-08
Mar
-09
Mar
-10
Mar
-11
Mar
-12
Mar
-13
$ pe
r MM
BTU
U.S. Hydrocarbon Pricing--Last 16 Years
NG v DieselSpreadSpot Propane
Spot ULSDieselHenry HubNatural Gas
Data Source: EIA.gov; National Average Wholesale Pricing for Liquids; National Average U.S. Henry Hub NG Pricing
Data Source: ANGA
CLEAN ABUNDANT
LOCAL
• Economical spread between diesel and natural gas
• Diesel $20+/MMbtu • NG: <$5/MMbtu
• Stable Price, now and
projected
Our market is established and growing at over 100% per annum
6
Prometheus Growth & Reliability Deliveries 2009 – To Date
Volume to date
(lng gal)
Delivery Count
(Truckloads)
Delivery Reliability
Rate
>51.1 million
>4,800 deliveries
>99.9%
1st Rig
Num
ber o
f LN
G T
ruck
load
s per
Mon
th
J-0
9M
-09
M-0
9J-0
9S-
09N
-09
J-10
M-1
0M
-10
J-10
S-10
N-1
0J-1
1M
-11
M-1
1J-1
1S-
11N
-11
J-12
M-1
2M
-12
J-12
S-12
N-1
2J-1
3M
-13
Recent Highlights 15+ active LNG fueled drill sites and 4 active or completed bifuel frac application • First turbine powered fracturing pilot in field (Jan) • First Canadian rig fueled (Mar) • 3 new rig contracts awarded in Mid Continent
(May) (operating) • 3+ new rigs contracts awarded in Marcellus (June) • Supply of 3 bifuel fracturing operations (Q1–Q3) • Supported successful drilling of ~500 wells with
LNG fuel solution • Fueled frac pumps for the completion of over 600
stages Location Eagle ford Marcellus Rockies
Onsite LNG Storage & Inventory Management
Logistics – Balancing variable demand with reliable supply
7 Business Confidential
10-30 30-80 80-120
400+
LNG Supply Summary (x,000 gpd)
Multiple Sources for each Customer
1 2
3 4
LNG Transport Fleet & Logistics Command Center
End of ’14, >50 LNG road transports
24 x 7 logistics coverage
- 3 to 5 days onsite storage for heavy burn days.
- Daily site visit by tech, inventory reading, communication of key operations, and telemetry
What does a LNG fueled drilling solution look like?
Conceptual, Confidential and Proprietary 8
Quantifying the Opportunity • Diesel Price is ~$3.50/gal and climbing
An all-in delivered turnkey LNG fuel solution is ______ per DGE
• Assuming an average daily diesel consumption of 1,500 gallons per rig ,the savings are $___ to $_____/day-rig
• This translates to $____k to $500k in fuel savings per year per rig.
• Multiply that over a fleet of 5 rigs => $___ to $___million per year
What does a LNG fueled hydraulic fracturing application look like?
Conceptual, Confidential and Proprietary 9
Quantifying the Opportunity • Diesel Price is ~$3.50/gal and climbing
An frac all-in turnkey LNG fuel solution is $____ to $___ per DGE (cheaper than drilling on DGE basis due to higher fuel consumption)
• Assuming 80 diesel gal/hr-pump peak, 16 pump spread, 2 hour stages, 5 stages per day = 12,800 diesel gallons per day
• With an average displacement of 55%, this translates to a displacement of ~7k DGE per frac day.
• The resulting savings is $_K to $_k per Frac Day • Assuming ___Frac days a year, one would
anticipate annual fuel savings of $__ to $__ million per converted spread.
Conclusions
Safety: Success • Dedication to Safety – Practice a culture of safety through maintaining,
communicating and implementing its QHSE programs Economics: Success
• Up to $_ million savings per rig; $__ million per frac spread Operational Performance: Success
• Commercially proven, operationally reliable LNG Supply Network: Success
• Diverse supply network capable of economically and reliably serving US market
10 BUSINESS CONFIDENTIAL
NOTICE the Dancing Bear!
11
www.prometheusenergy.com
Mike Fradette Business Development Manager 603.540.1025 [email protected]
Integrated LNG Fuel Solutions
Questions??
BUSINESS CONFIDENTIAL
Houston Office (HQ) Prometheus Energy Group, Inc. 10370 Richmond Ave, Suite 450, Houston, TX 77042 (o) 832.456.6500