0915-1030 SESSION ONE: The Dynamics of Atlantic
LNG Supply and Effect of Competing Markets Bob Nimocks,
president, Zeus Development Corporation
Nimocks will review the operating export plants in the Atlantic
and Middle East; consider the proposed projects in the Atlantic
(including the Norwegian Sea), Mediterranean, and Middle
East and discuss their capabilities and gas composition;
review the delivery economics to create a supply curve to
the East Coast; discuss the impact of competing markets;
and forecast trends in supply capacity to provide the attendee
a profile of the LNG industry's capability to supply gas
to the East Coast.
1030-1100 BREAK
1100-1230 SESSION
TWO: East Coast Gas Demand and Alternative Frontier Sources
of Gas Tom
Woods, senior consultant, Platts Research & Consulting
Woods is a specialist on North American gas supply-basins,
competing fuel services, gas transmission and market issues,
and frontier gas. He will review the demand and nature of
gas markets along the East Coast, breaking his presentation
into three segments:
- Outlook for Atlantic Coast Gas Demand, which will
provide a nominal description of sub-regional gas-market
prospects (e.g., Florida, DELMARVA, New England). Woods
will discuss gas prices necessary to be competitive with
alternative options (e.g., coal) to generate electricity,
comparing LNG plant-gate prices on the Atlantic Coast.
- Gas Delivery Capacity into Atlantic Coast Market,
which will consider the effect of LNG deliveries on need
for new gas transmission and storage capacity serving Atlantic
Coast markets.
- Supply Availability, which will review alternative
sources of gas supply, including frontier sources and developing
outlook for gas-supply slates.
1230-1245 Conclusions and Issues to Consider for the
Rest of the Conference Bob Nimocks,
president, Zeus Development Corporation
Nimocks will wrap up the workshop by summarizing the conclusions
of the discussion and outlining the issues the delegate might
consider as he or she attends the terminal tour and presentations
over the next two days.
Lunch and refreshments will be provided
aboard the "Spirit of Boston" cruise vessel as
we tour historic Boston Harbor. The tour begins at 1:30
pm on Monday, December 8, departing from the "Spirit
of Boston" dock located at the Boston World Trade Center
across from the Seaport Hotel, returning at 3:30 pm. Space
is limited and allocated on a first-come, first-serve basis.
For information, contact at 713-952-9500.
Introduction, Objectives Bob
Nimocks, president, Zeus Development Corporation
Nimocks will describe the objectives for the conference,
review the program, and outline issues participants
might consider as the conference progresses.
0845-0930
East
Coast Powerball: The Gas Industry's Largest Wager Tim
Bleakley, principle, McKinsey & Company
The East Coast is in need of a stable, cost-competitive
baseload supply of gas. Billions of dollars in transmission
pipelines may soon compete with billions in LNG export
infrastructure. What's at risk in this wager? Will
the suppliers complement one another or deteriorate
returns for all parties? How might regional markets
react to increases in supply? What are the implications
for East Coast industry and the economy? This presentation
will outline these issues.
0930-1000
East
Coast LNG and the Impact to North American Gas Transmission
Kenneth
L. Yeasting, director, Cambridge Energy Research Associates
With four LNG import terminals now in operation and
over 30 more proposed, what will be the impact of
LNG imports on pipeline flows and gas prices? CERA
will examine these issues by presenting its analysis
of how the reactivation of the Cove Point LNG terminal
is impacting pipeline flows and gas prices.
1000-1030
Opportunities,
Challenges for Supplying New England with LNG Gordon
Shearer, CEO, Weaver's Cove Energy
With five oil-fired power plants scheduled to close,
and disappointing results in offshore Nova Scotia, New
England needs new supplies of natural gas. Weaver's
Cove Energy, a subsidiary of Poten & Partners, has proposed
to develop a receiving and regasification terminal near
Fall River to supply natural gas and LNG to the region.
Local residents, however, are expressing concerns for
their safety and environment, questioning whether the
economic benefits warrant the risk. Shearer has been
asked to review the project, address the local community
concerns, and discuss how the broader LNG industry can
help improve public understanding of the benefits and
risks of LNG.
1030-1100
BREAK
1100-1130
Electric
Power to the East Coast, the Shock of High Gas Prices,
and Opportunities for LNG Mark
Sudbey, president, New York and Southeast Regions,
Reliant Energy Wholesale Group
Gas used to fire electric power has been the fastest
growing sector of the natural gas marketplace. However,
in the winters of 2000/01 and 2002/03, prices soared
well over $5 per MMBtu, causing power producers that
could switch fuels to use lower cost alternatives
and reconsider long-term plans for new gas-fired power
plants. Sudbey, formerly with Orion, manages both
gas and coal-fired power production for Reliant Resources
all along the East Coast. He has a unique perspective
of what the LNG industry must do to serve the U.S.
power sector.
1130-1200
The
Search for Reliable and Affordable Gas Supply: Challenges,
Opportunities from an Industrial Energy Consumer's
Perspective Kevin Boyle, sr. consultant,
Zeus Development Corporation Industrial energy consumers have been
hurt by recent increases in gas prices. Earlier this
year, Dow Chemical announced plans to purchase some
500 million cubic feet per day of LNG through the
Freeport Texas terminal. How can the LNG industry
serve these large customers, what are their attitudes
towards negotiating long-term supply agreements, do
they want fixed or indexed prices, do they want terminals
involved or to negotiate directly with exporters?
Boyle, formerly with Oxy Chemical, Koch and CMAI,
will discuss and address these issues.
1200-1230
The
Challenge for LNG to Serve Weather Sensitive Commercial
and Residential Markets as Gas Displaces Heating Oil
Craig Taylor, president,
HNG Storage
Utility markets in North East are famous for their
seasonal peak demand. Gas and electric companies have
to manage needle peaks that can be five times the
average annual load. How do utilities manage this
seasonality and where will strains in the system arise
as more LNG is moved into the market?
1230-1400
LUNCH
1400-1730
PANEL:
Exporter Capabilities and Interests
1400-1420
How
Exporting Governments, Their National Oil Companies,
Banks and IOCs Commonly Work Together to Create Gas-Export
Initiatives Noam Ayali,
partner, Chadbourne & Parke LLP, Washington D.C. As the introduction to the panel, Ayali will
discuss how export projects are typically arranged.
He will first discuss how natural gas arrangements are
dealt with in the context of petroleum arrangements,
and the differences between oil and natural gas. He
will then review the commercial structures for large
scale natural gas export and/or LNG projects. Integrated
and bundled commodity structures will be compared to
unbundled, stand-alone projects, utilizing examples
such as the Indonesia LNG projects and Atlantic LNG.
Timing, strengths and weaknesses and implications for
financing considerations will be discussed as well.
1420-1440
Lessons
Learned from Trinidad and Tobago’s Policy Initiatives Sandra Racha, economist, Central
Bank of Trinidad and Tobago Racha will discuss the challenges and lessons
that can be drawn from the government and NOC policies
instituted in TT. These policies have created one of
the world's most successful gas-development and export
climates, significantly boosting TT's economy, credit
rating and standard of living for its citizens.
1440-1500
Venezuela:
Sorting through the Turmoil David Voght, managing director,
IPD Latin America Voght is an objective and knowledgeable authority
on the current energy milieu in Venezuela. He will provide
a review of the latest political climate, issues and
policy directions as it relates to natural gas export
from Venezuela, discussing likely scenarios and timing
for projects as well as the major hurdles that face
developers, PDVSA, the government and lending institutions
as they try to market gas from the nation's sizeable
reserves.
1500-1520
Petronas:
Expanding Beyond Malaysia Nantha Kumaran, head of
strategy & business development - global LNG, and Saheera
Ahmad, manager of gas strategic planning, the Gas Business
Unit, Petronas Kumaran will provide the perspective of a major
national oil company. He will briefly discuss the history
of Malaysia LNG and the Bintulu export hub, and then
address how Petronas is evolving into an international
organization with interests in Egypt and elsewhere.
He has been asked provide insights as to what are the
priorities for national oil companies as natural gas
grows into the world's most important energy commodity.
1520-1540
Global LNG Integration from
a Base of Gas and Power Distribution: Tractebel's
Perspective Richard
Grant, president, Tractebel LNG North America
Tractebel, the energy division of SUEZ, is a competitor
in North American and European energy markets. The
company is vertically integrated along the LNG supply
chain with interests in export plants, shipping, and
regasification facilities in Europe and the USA. Grant
will discuss how the expansion of LNG is allowing
firms primarily involved with gas power production
and distribution to devise global strategies.
1540-1600
Global LNG Integration
by an Oil Major: Marathon's Perspective Steve
Lowden, senior vice president business development
and integrated gas, Marathon Oil Company
With LNG export projects under development in West
Africa (Equatorial Guinea) and interest in East Coast
terminals (Elba Island, Ga.), Marathon is actively
involved in the Atlantic as well as Pacific in matching
exporter requirements to importers needs. Lowden has
been asked to provide the perspective of an integrated
supplier with primary interests in traditional oil
and gas E&P and refining.
Conclusions from the previous day's
discussion and outline of objectives for Wednesday Bob
Nimocks, president, Zeus Development Corporation Nimocks will describe the objectives for the conference,
review the program, and outline issues participants
might consider as the conference progresses.
0830-0900
A
Review of Shipping and Existing Terminal Activities
and Issues Chuck
Bayens, chairman, Zeus Development Corporation Will shipping be a bottleneck in the Atlantic,
or will new ships arrive before terminaling capacity
expands? The peak send-out rate of the existing three
terminals on the East Coast has climbed from less
than 0.5 BCFD to 2.5 BCFD. Is this the limit? What
other opportunities and issues can management of these
terminals consider?
0900-0930
Critical
Issues and Timing for Siting and Planning New LNG Terminals Steven
Sparling, attorney, Sutherland Asbill & Brennan Whether in the United States, Canada or the Bahamas,
developers of LNG terminals face a long checklist of
tasks before a terminal can be made operational. Sparling
will outline these as the introduction to the "Proposed
New Terminals" panel.
0930-1000
Case Study: Tractebel's Proposed Bahamian
Terminal Paul Cavicchi,
president and CEO, Tractebel Project Development Inc. Tractebel expects to decide how to manage its US$550-600
million LNG project in the Bahamas by the end of this
year, and award contracts by 1Q04, according to a company
report. The project includes an LNG receiving terminal
on Grand Cayman Island, marine facilities, and a 90-mile
pipeline to Florida's southern coast, including a five-mile
onshore segment.
Offshore East Coast Terminals: The Latest on Regas
Ships Jens
P Kaalstad, managing director, APL Inc. APL designs the turret and buoy systems necessary
to connect LNG carrier vessels to undersea pipelines.
Two of the ships, which will pump and vaporize LNG
directly into the distribution system, are currently
under construction for delivery late next year. Other
ships are planned. Kaalstad will provide the latest
details on these ships and technology.
1030-1100
BREAK
1100-1130
Fair Play for Harpswell: A Community Perspective
Chris
Duval, founding member, Fair Play for Harpswell Fair Play for Harpswell has taken a negative but
open view to the debate now in front of the voters
of Harpswell, Maine, for a new onshore LNG terminal
there. Duval has been asked to outline the questions,
present the concerns of his constituents, and explore
with the industry if there is middle ground for importing
more natural gas via LNG into North America.
1130-1200
What FERC Looks for When Considering
Siting Issues and the LNG Siting Process Chris
Zerby and Bob Arvedlund, FERC The Federal Energy Regulatory Commission (FERC)
regulates and oversees energy industries in the economic
and environmental interest of the American public. Onshore
receiving must receive their blessing. Pipelines from
terminals in neighboring countries must also be approved
by FERC. And though the U.S. Coast Guard regulates offshore
terminals, it works with FERC among other agencies in
its review and approval process.
1200-1230
MEPA's
Role and Perspective on New LNG Terminals Arthur
Pugsley, Mass. Environmental Policy Act
States will play a key role with FERC, the Coast Guard
and other federal agencies when approving applications
for LNG terminals. Pugsley will describe the State of
Massachusetts' role.
FERC, the U.S. Coast Guard, EPA, state agencies, and
energy firms are among the stakeholders that will
determine the rate at which LNG receiving capacity
for the East Coast is expanded. This panel will include
representatives from organizations that will shape
the U.S. supply of gas and LNG's role within that
supply for decades.
1400-1410
Conference Closing and Final Report
A summary of the preliminary conclusions that can be
drawn from the conference will be presented with an
outline of the contents of the final report to be mailed
after the conference.
The
Search for Reliable and Affordable Gas Supply: Challenges,
Opportunities from an Industrial Energy Consumer's
Perspective 
Critical
Issues and Timing for Siting and Planning New LNG Terminals
MEPA's
Role and Perspective on New LNG Terminals