Project Overview

Sapia

1 2 N o ve m b e r 2 0 1 3

LP G i mp o rt an d sto rage te rm i n al
c l e a n e r e n e rg y reliable supply modular design a f fo rd a b l e e n e rg y
job creation l o c a l s u p p l i e rs e nv i ro n m e n t a l a n d h e a l t h b e n e f i t s
p ro m o t i o n o f S M M E s s a fe t y i n d e s i g n w w w. s u n r i s e - e n e rg y. c o . za
Why Liquefied Petroleum Gas (LPG)?

• Cleaner form of energy than electricity generated from coal; LPG

derived CO2 emissions are only 20% of coal powered electricity
emissions
• More efficient than electricity for household heating or cooking and
industrial thermal applications.
• LPG infrastructure cheaper than power infrastructure <10% of the
cost per MW power plant installed
• LPG use in Low Income Households is both safer and healthier than
alternative fuels
• LPG more affordable than electricity
• 25% of actual heat generated or input into fossil fired power
stations ever reaches the end user for domestic thermal use
Project Motivators

• In line with Government (DOE) Energy Strategy to change energy

mix and supply LPG to all sectors of society, targeting LIH
• 1.5 million tons per annum LPG will replace 2 500 MW electricity
generation equivalent
• The Capex of LPG infrastructure (R/MW) less than 10% that of a
power station
• Shortfall in production capacity by WC refineries
• Road transport of LPG from upcountry not economical and unsafe
• LPG availability from inland refineries not sustainable due to
substantial LPG market growth in northern regions
• Provides strategic buffer storage in Western Cape – current storage
for LPG less than 3 days. Phase 1 - will increase storage days to 14
days
Project Benefits

• Addressing LPG shortages in Western Cape and further afield

• Secure LPG supply to critical industries, small business, hospitality
industry, households
• Job creation and job preservation
• Breaking current LPG supply chain monopolies enabling wider
participation and new entrant SMME’s
• Reliable affordable LPG supply to Low Income Households
• Procurement from and development of local suppliers, in synergy
with Saldanha Industrial Development Zone strategy
• Enabling business growth
• Assistance with downstream infrastructure development for LPG
through Sunrise Energy CSI and Enterprise Development Programs.
Current Western Cape Consumption

• Unhealthy energy mix in South Africa

• Per capita consumption in South Africa Domestic Sector (excluding
industries) versus other countries:
Country kg/capita/annum
South Africa 3-6
Brazil 40
Malaysia 65
Australia 157
• Currently a supply-limited market with scope for expansion
• Due to unreliable LPG supply, consumers have switched back to less
desirable forms of domestic energy
Supply and Demand - 2013
Supply and Demand – 2015/2016
Supply versus Demand in Western Cape

Shortfall of 4 500-6 500

ton/month predicted by
year 2015
Overview of the Sunrise Facilities

• Phase 1 to meet current market: 5 500 ton storage comprising 5off

7m x 60m mounded storage bullets
• Phase 2 and 3 modular expansion matching market growth (5 500 ton
each, total 16 500 tons storage) with total throughput capacity up to
52 000 tons/month
• LPG mixture, Commercial Propane, Commercial Butane in accordance
with SANS 1774:2007
• Marine design vessel maximum 3 000 – 20 000 DTW pressurized/ semi
refrigerated/refrigerated vessels, LoA 97m – 174m, with draft 6.0 to
10.4 meters. Marine terminal based on a MBM in Big Bay Saldanha.
• Provision for Rail and Road dispatch and direct cylinder filling.
• Phase 1 is a R700m project
• Terminal Operator allowing open access to third parties for the import
and storage of LPG
 Process Schematic

WITHIN TNPA/PORT BOUNDARIES WITHIN SUNRISE ENERGY BOUNDARIES

MBM (Multi Buoy Mooring) Total Capacity of LPG Bullets = 15 000 tons
Total Throughput Capacity = 52 000 tons/ month
Beach Valve Station Rail Loading Gantries (3)
Located at:
X = - 92 553.5 m
Flexible Hose Y = - 3 653 935.7 m

Subsea pipeline = 3 155m

PLEM (Pipeline
End Manifold)

Road Loading Gantries (6)

Overland pipeline (within
TNPA boundaries) = 1 522m

Pipeline (within
Berth Area of MBM Sunrise Energy
Defined as the area between the fixed mooring points boundaries) = 534 m
(i.e. between the Mooring Buoy Sinker Blocks)(Green rectangle below)
Area = 281m x 117m = 32 877 m2

LPG Cylinder Filling Facility

Provision for pipeline to

Bulk Consumers
Plot Plan
Site Layout
Marine MBM
Marine Scope

• MBM located off the iron ore jetty in Big Bay

• 4 x 500 tons gravity moorings (each with 10 x 50ton blocks) and
heavy anchor chains
• 4 x mooring buoys urethane foam filled
• Counter weights
• Special flexible LPG offloading hose Pipeline End Manifold (PLEM)
• 3 000m x 12” concrete weight coated subsea pipeline rated at 25
bar. Corrosion protection special coatings, wrapping, sacrificial
anodes with 40 year life
• Navigational lights and pipeline marker buoys
Mounded Storage Bullets

• 5 off 7m diameter x 60m long mounded bullets, design pressure -0.7

bar to 16 bar, -40oC to +40oC
• To be fabricated by Elgin Engineering in Saldanha Bay (on property
adjacent to Sunrise Energy site)
Bullet Design
LPG Mounded Storage
LPG Mounded Storage
Onshore Facilities

• Blending to specification, vessel-to-vessel transfers, dispatch

utilising common transfer pumps
• Ethyl mercaptan odourant dosing
• 3 x LPG road loading bays, expandable to 6 bays
• Facility design allowing for export via road, rail or direct pipeline
transfers to third parties via custody metering systems (to local
industry or 3rd party distributors)
• Third party bottling facilities
• Integrated fire and gas detection and fire protection systems
• Fully automated ESD safety systems
• Auxiliary systems, utilities and buildings
Project Status

• All necessary regulatory approvals achieved, including the TNPA

Section 56 Terminal Operators Agreement, signed May 2013
• Award of the Engineering, Procurement and Construction
Management (EPCM) contract to Jacobs Matasis
• “Approved for Detailed Design” drawings approved after a third
party Hazop was completed
• Detailed design in progress with RFQs for major contracts to be
issued in the next six months
• Award of Marine Engineering contract to PRDW in July 2013
• Award of Bullet Fabrication contract to Elgin Engineering in August
2013
• Site geographical survey completed; marine survey in progress
• Earthworks and ground clearance to commence end 2013
 Project Level 1 Schedule

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019
Phase
Quarter 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Regulatory
EIA
EIR Land Facilities
All Phases

EIR Marine
MHI
NERSA
TNPA Sect 56 TOA
Land Rezoning
Full Scope Facilities
BFS
Detail Design
Phase 1

Order Long Lead Items

Construction
Commissioning
Operational
Next Bullet Battery
Additional Road Loading Gantries
Phase 2

Next 5000t Bullet Battery

Job Creation

Sunrise Energy Project Manpower Buildup

450 Operation Phase

Fabrication & Construction

400 Phase
Engineering & Procurement
350 Phase
Total Manpower & Jobs from Project

300

250

200

150

100

50

Date
 LPG MRGP

• In a regulated market the true import parity for LPG MRGP pricing is a
vital step towards the rollout of LPG – a delay in decision will hinder the
development of LPG import terminals projects
• LPG importation and storage infrastructure differs significantly from the
liquid fuels infrastructure. Capex between 6 to 8 times more per cubic
meter storage than a gasoline/diesel storage terminal
• Ship parcel sizes are 4 to 6 times smaller and shipping costs are more
expensive – need to optimise LPG import terminals for economic parcel
size.
• LPG to the end customers i.e. light industrial and domestic consumers
must be competitive and more affordable that electricity
• LPG import terminals to alleviate supply shortfall is only part of the
equation – massive rollout of LPG cylinders and distributed cylinder
filling facilities are necessary.
LPG MRGP cont ….

• Government must realise its far cheaper for government to invest in

LPG infrastructure, cylinders etc. than power infrastructure – only
10% of the cost per MW installed
• The Government Gazette of 24 October 2012, no. 35818, concludes
that the growing demand for LPG can only be met through import
terminals.
• In a regulated pricing environment it’s important that the landed
cost via LPG import terminals the same as the MRGP refinery gate
price in order to foster healthy competition in the open market.
• A new LPG Importation terminal need a throughput fee of $200/ton
or between R1850 - R 2100/ton. This is in line with international
throughput charges
Questions ?

with sincere appreciation from

…bringing safe, reliable and cleaner energy to the

Western Cape community by utilising local resources
and expertise
 Capacities & Throughputs

Development Phases Phase 1 Phase 2 Phase 3

Start of End Phase Start of End Phase Start of End Phase
Mid Phase Mid Phase Mid Phase
Operation 1 Operation 2 Operation 3
High Growth 2015 to 2020 2020 to 2028 2028 to 2035
Expected Grouwth 2015 to 2025 2025 to >2035 >2035 to >2035
Throughput Capacities
Total Annual Throughput [ton/annum] 60000 120000 180000 180000 270000 360000 360000 435000 510000
Total Monthly Throughput [ton/month] 5000 10000 15000 15000 22500 30000 30000 36250 42500
No of 1000t Storage Bullets [No.] 5 5 5 10 10 10 15 15 15
Average Parcel Volume Offloaded [m3] 6500 6500 6500 13900 13900 13900 20400 20400 20400
Max Ship Offloading Rate [m3/hr] 500 500 500 750 750 750 750 750 750
Ships per Month [No./month] 1.4 2.9 4.3 2.0 3.0 4.0 2.7 3.3 3.9
Tons Dispatched by Road tankers [tons/month] 4500 9000 13500 12800 19200 25500 25500 30900 36200
Road Tankers per Month [No./month] 180 360 540 520 770 1020 1020 1240 1450
Road Tankers per Day [No./day] 6 12 18 17 26 34 34 41 48
No of Road Loading Gantries [No.] 3 3 3 3 4 4 5 6 6
Tons Dispatched by Rail tankers [tons/month] 500 1000 1500 2250 3375 4500 4500 5438 6375
Rail Tankers per Month [No./month] 20 35 50 40 60 75 75 95 110
Rail Tankers per Day [No./day] 0.7 1.2 1.7 1.3 2.0 2.5 2.5 3.2 3.7
No of Rail Loading Gantries [No.] 2 2 2 2 2 2 3 3 3
Bullets Fabrication
Commercial Operating Model

Commercial Agreements

Throughput Agreement Dedicated Storage

Throughput charge based on R/ton

Only medium/Long term
moved through facility:
rental agreements
Based on prior arrangement
Early Bird Discount
per phase
Volume Customer Discount
Fixed size monthly storage
space rental
0-2 weeks 2-4 weeks 4-6 weeks Not dependent on actual
no throughput throughput throughput usage
storage charge storage charge storage charge
at Rate 1 at Rate 2

>6 weeks
Rate 3 – generally disallowed – special arrangement only