C O M P A N Y O V E R V I E W
In Partnership With:
Sustainability is at the forefront of
SCT&E LNG’S NEW FACILITY within LOUISIANA
Written by Catherine Rowell Produced by Tom Venturo
SCT&ELNG is constructing a $6.9 billion Liquefied Natural Gas (LNG) Export Terminal within the State of Louisiana, providing an environmentally-friendly and clean fuel source to the global energy mix with an increased emphasis on sustainability
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ompanies worldwide are increasingly tasked with finding cheaper, more sustainable energy sources that will reduce increasing levels of environmental pollutants while continually meeting the demands of its growing consumer base. Originally established by Southern California Telephone Company, SCT&E LNG is now globally renowned as the developer of a 12 mtpa natural gas liquefaction and LNG export facility on Monkey Island in Cameron Parish, Louisiana. The company’s innovative and technical innovations in providing sustainable and affordable natural gas via LNG to countries in need of clean burning and inexpensive
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energy solutions has been globally recognized, at which the company has been recently nominated for the CWC Asia Pacific LNG Innovator of the Year Award for its unique 20year fixed price LNG supply offering, a first of its kind in the industry. “The United States has an abundance of clean natural gas, and there are places in the world that are in desperate need of clean fuels, rather than pollutants which we are currently experiencing. SCT&E LNG will supply inexpensive, stable, and clean burning fuel into parts of the world that desperately need it,” explains Eric Smith, Executive Director of Business Development. SCT&E LNG’s unique 20-year fixed price option is just the beginning of the company’s innovative offerings
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in the industry. According to CEO Greg Michaels, the company is “currently working on crafting LNG supply deals based on exotic indexes, something no one else has been able to achieve before.” Multiple natural gas pipelines are located close to the 246-acre project site, which will allow natural gas to be collected and treated effectively in order to go through the liquefaction process where the gas will be cooled to -162°C (−260 °F) degrees. The LNG will then be placed within three onsite storage tanks situated alongside three LNG trains incorporated into the SCT&E LNG development. The storage tanks will hold around 160,000 cubic meters of LNG supply each, which will cater to the increasing demand for clean burning fuels, and can be utilized for a multitude of needs, from commercial and residential use, to industrial and transportation services. While innovation is a key distinguisher of SCT&E LNG’s business philosophy, pursuing “proven” strategies, technologies and locations is also a fundamental
about Strategically located on Louisiana’s Calcasieu Ship Channel, the future SCT&ELNG facility sits approximately 2.5 miles inland from the Gulf of Mexico. The project site is located near the heart of the U.S. natural gas intrastate and interstate pipeline systems, just miles from major gas pipeline interconnections. SCT&E LNG has received Order No. 3566 from the Department of Energy granting them a 30year authorization to export approximately 1.60 billion cubic feet per day (bcf/d) of natural gas, or approximately twelve (12) million tons per annum (mtpa) of domestically produced LNG, by vessel from the proposed SCT&E LNG Export Terminal to countries with whom the United States has a Free Trade Agreement. SCT&E LNG also has a nonFTA application on file with the DOE that is pending approval.
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aspect of its business model. Louisiana already has a robust infrastructure in place and has garnered strong community and government support. The $6.9 billion SCT&E LNG development will provide over 1,500 construction jobs, boost the US economy and has garnered widespread political support. Louisiana is also currently the third natural gas producer and the ninth crude oil producer in the nation. “Our facility will have a direct positive impact on the health of tens of thousands of people where our
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gas will be consumed as well as contribute to the health of the global environment,� adds Michaels. The SCT&E LNG project is headed by a strong executive team of energy professionals with vast experience within the LNG and EPC industries. Vice President of Engineering, Scott Ray, has extensive knowledge and vast experience in designing and constructing a number of LNG liquefaction facilities globally, in addition to commissioning five LNG trains and seven cryogenic storage tanks. With over 27 years
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of experience in Engineering, Construction and Procurement (EPC) industry, Ray’s expertise compliments that of Smith, who is currently developing the project’s commercial and business development strategies. “Our strategy is to have the most knowledgeable team of people with a high level of industry experience directly related to developing projects like ours. We run with a lean team to maintain staying power through the development phase, and to bring results and return on investment to our partners”, explained Michaels. Running lean is a fundamental factor in SCT&E LNG’s continued success, and the project has been able to achieve several key milestones
at the fraction of the money spent by other, more heavily funded projects. Michaels explains, “We are careful with our capital and understand what an important tool it is. We operate under a “waste nothing” mentality and negotiate with every contractor aggressively. We listen intently to our advisors and contractors, then apply their recommendations based upon our team’s extensive experience. We approach our customers/ offtakers with the mindset of best supporting their needs. The response from offtakers on our commercial innovation, proven decisions, and customer service confirms that SCT&E LNG’s way of operating is working.” SCT&E LNG has placed an
“The fact that establishing this facility will make a difference in the lives of so many people around the world is what excites me and the entire team most” – Greg Michaels, CEO
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Big LNG expertise. Also available in small LNG plants. Air Products has contributed to the success of more LNG operations than any other company. And we bring our full capabilities to LNG projects of any scale, from peak-shaving plants producing less than 0.1 MMTPA to the largest base-load facilities, on land or off-shore. Our LNG team can help you get a plant up and running at the highest efficiency–on time, on budget, and in any climate. To learn more, call 800-654-4567 (US), 1-610-481-4861 (worldwide) or visit us online.
tell me more airproducts.com/LNG
Š Air Products and Chemicals, Inc., 2016 (39969)
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increased emphasis on fulfilling what for the SCT&E LNG project. has been titled the “second wave” of “The long term, global benefit of our LNG demand, which is predicted to facility is the improved environmental begin in 2023 and rise thereafter. This impact it will have in places, such prediction coincides with the timing as China and India, where coal is of SCT&E LNG’s being used as a signed Natural Gas primary fuel source Supply Agreement, and resulting negotiated by in high levels of Michaels, which pollution in the begins at the atmosphere,” adds commencement Michaels. “This of the facility’s pollution is causing operations around devastating health 2023 and ensures consequences for a 20-year fixed the communities, price for the supply and natural gas of LNG for SCT&E fueled energy will LNG’s customers. work to greatly This agreement improve the air has enhanced quality of these the appeal of the countries.” Natural facility’s LNG for – Eric Smith, Executive Director gas is known buyers, creating of Business Development to be twice as a competitive clean burning as advantage for the company and traditional energy sources, such as oil its shareholders. Five confirmed and coal, and will provide increased MOUs have been signed to date benefits through the reduction of for a total of 5.7 mtpa of LNG, pollutants regularly emitted. signifying increased momentum A number of key partners have
“SCT&E LNG will supply inexpensive, stable, and clean burning fuel into parts of the world that desperately need it”
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been bought into the project to deliver crucial engineering services and help drive the project forward. Technip has been selected as the Owner’s Engineer for the development and will undertake work relating to the Federal Energy Regulatory Commission (FERC). In addition, Technip has significant experience working with Air Products and Chemicals Inc. (APCI), the liquefaction technology provider selected for the SCT&E LNG project, a relationship that will be advantageous
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+
YEARS OF EXPERIENCE MITIGATING RISK
in successfully moving the project forward through completion. Ray remarked, “We selected the world’s number one LNG technology, Air Products and Chemicals. We’ve done that because it’s proven to be the best technology with the lowest cost for producing LNG.” Ray further adds, “for technology, two gas turbine drivers are currently being considered – one by GE Oil and Gas and the other by Siemens.” The expected demand for clean
Fugro is proud to be a selected partner for SCT&E LNG. We have a proven track-record providing data acquisition, comprehensive project management and risk mitigation. Clients trust our capability providing integrated solutions onshore and offshore to the LNG industry while maintaining world HSEQ standards. Fugro inquiries@fugro.com www.fugro.com
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fuels is predicted to triple within the next 20 years, which will yield a multitude of challenges for both suppliers and consumers. Eric Smith explains, however, “the main challenge presently faced in the global market is getting customers to make the switch from coal to natural gas on a long term basis”. He adds: “Coal has historically been cheaper than natural gas, but it’s also extremely bad for the environment. What we’re finding is that the carbon tax being considered in many countries around the world is an attempt to equalize the price of coal with other cleaner fuels to encourage those nations to make the switch to fuel sources that will have less of an impact on the environment.” The company, however, has acknowledged the need to find sustainable solutions that will also benefit the global community while driving the delivery of greener, cleaner energy sources for the world: “A huge driver for us is the environmental impact the increased use of natural gas will have, which in turn affects society as a whole. People would like to have a cleaner
atmosphere because it affects their quality of life, and our project will deliver fuels to these communities that will provide them with their electricity and create a cleaner atmosphere,” concludes Smith. The long term benefits of the project are evident. “The fact that establishing this facility will make a difference in the lives of so many people around the world is what excites me and the entire team most”, reflected Michaels. SCT&E LNG are clearly passionate about not only the sustainability and superiority of LNG as an energy source, but also the increased advantages it has over dirtier fossil fuels which the SCT&E LNG development can deliver globally. Strong partnerships will support the delivery and key outcomes, which in turn will effectively support countries in utilizing greener fuel alternatives to provide benefits for the future.
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SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM development of a $6.9 billion natural gas liquefaction facility located in Southwest Louisiana for the export of LNG globally. As Chairman and CEO of SCT&E LNG, he has spoken on LNG issues internationally and is a published author. At the age of 26, Mr. Michaels founded Wholesale Airtime, Inc., now Southern California Telephone Company, one of the few privately-held
Greg Michaels CEO
telecommunications companies to successfully navigate the Telecom Act of 1996 that deregulated the telecom industry in the United States. Early
A lifelong entrepreneur, Greg Michaels
in his career, Mr. Michaels wrote his
completed the highly selective and well
company’s first brief petitioning the
respected Entrepreneurship Program
California Public Utility Commission
at the University of Southern California
(CPUC), who subsequently granted
(USC) Marshall School of Business.
his company’s Certificate of Public
Mr. Michaels majored in Business
Convenience and Necessity, creating one
Administration and completed an
of the first privately-held public utilities
additional pre-medical curriculum. During in the State of California. As a pioneer his four years at USC, he competed of the telecom industry, he developed as a student-athlete on the acclaimed
the process and platforms that allowed
USC Men’s Varsity Tennis Team. After
Competitive Local Exchange Carriers
his time at USC, Mr. Michaels pursued
to interconnect their networks via
a career as a professional tennis player.
incumbent communications providers
Mr. Michaels is a national champion
and contributed to the success of number
and still competes currently. Today,
portability that all Americans enjoy today.
Mr. Michaels is a successful business
Mr. Michaels has capitalized on his ability
leader and is the developer, owner, and
to build successful teams by identifying
operator of a number of businesses
personal strengths in individuals
encompassing telecommunications,
and further developing them. He has
real estate development, energy, and
employed thousands of people and
oil and gas. In 2014, Mr. Michaels
is well respected by his management
established a LNG company for the
teams and personnel. He has bought,
Greg Michaels, CEO
GREG MICHAELS
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sold, and started over two dozen
LNG, a company he founded to help fill
companies. A recent acquisition gained
the growing global demand for natural
him a controlling interest in North Energy
gas. Focused on the energy revolution
Central (NEC) www.northenergycentral.
taking place in North America, Mr.
com. The principals of NEC have
Michaels seeks to become an exporter
developed over $5 billion in power
of U.S. natural gas while simultaneously
generation facilities worldwide which
helping the United States become a
include bio fuel, nuclear, and natural gas-
net exporter of its energy. In March
fired power plants fueled
2014, Mr. Michaels led SCT&E LNG, via
by LNG.
the LLC, to acquire approximately 246
Upon acquisition of the controlling
acres of land via a 99+ year (including
interest in NEC, Mr. Michaels took over
the option terms) Option-to-Lease
stalled negotiations with the Dominican
agreement in Southwest Louisiana
Republic government to build a 300
for the development of an LNG export
megawatt gas-fired power plant. Within
terminal. The project is modeled as a 12
months of the purchase of NEC, and
mtpa natural gas liquefaction facility.
leading new negotiations with the state-
In addition to his business interests, Mr.
owned electric utility, Corporación
Michaels’ passion for his community
Dominicana de Empresas Eléctricas
and sense of civic responsibility led
Estatales (CDEEE), Mr. Michaels
him to coach youth soccer and tennis
increased the scale of the project and
for over fifteen years where he parlayed
signed a Memorandum of Understanding
his strengths in talent development
(MOU) with the CDEEE for the
and team building. Mr. Michaels
development of a 400 megawatt gas-fired
successfully led his soccer teams to
power plant and LNG receiving terminal.
earn fifteen division championships and
The total project costs were estimated at
over thirty tournament championships.
approximately $850 million. Mr. Michaels
Mr. Michaels believes, “Success is
negotiated additional terms that included
achieved by helping people accomplish
provisions which allowed NEC to provide
what they never thought possible.” Mr.
the Dominican government with its
Michaels runs all areas of his life by this
foreseeable natural gas requirements.
philosophy. He is a dedicated family
Mr. Michaels and his wife founded
man, husband of 24 years, and father
and 100% own Southern California
of three adult children, one who is a
Telephone Company, a United States
graduate of Cornell University, another
public utility. Mr. Michaels’ latest
currently attending Cornell, and one
endeavor is the development of SCT&E
who attends Pepperdine University.
SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM positions designing, building, and commissioning LNG liquefaction facilities globally, and has engineered and commissioned five LNG trains and seven cryogenic storage tanks to date. Mr. Ray’s engineering career began at MW Kellogg, now Kellogg Brown and Root (KBR), in a program designed to develop young engineers. MW Kellogg was recognized as an international leader in the field of LNG facility
Scott Ray, Vice President of Engineering for SCT&E LNG
design. After completing the MW Kellogg engineering program, Mr. Ray joined a startup team from MIT, Aspen Technology, to develop software for
Raised in an entrepreneurial family
chemical engineering companies. While
in a small town near Pittsburgh,
at Aspen Technology, Mr. Ray was part
Pennsylvania, Scott Ray grew up working
of a team that successfully took the
on farms and developing real estate with
company public. During the time Mr.
his father. His father instilled in him the
Ray worked at Aspen Technology, the
importance and value of hard work and
stock price increased over 400%. He
dedication, and this work ethic propelled
was recognized at Aspen Technology
him to strive for excellence which landed
for making the company’s single largest
him in one of the most prestigious
sale to Fluor, a highly recognized
engineering colleges in the world,
global engineering company. As part
Carnegie Mellon University. Mr. Ray
of the sale, Mr. Ray spent roughly
covered much of the cost of his college
one year at Fluor implementing a
tuition from the proceeds of his real
training program with its employees.
estate transactions. After completing his
Upon the completion of his
Chemical Engineering degree at Carnegie
responsibilities at Fluor, Mr. Ray
Mellon’s College of Engineering, Mr. Ray
rejoined KBR to pursue his passion for
has had a successful 26-year career
LNG development. At KBR, Mr. Ray
in the EPC business. With a focus on
was part of a world-class engineering
world scale LNG projects, Mr. Ray has
and design team that developed LNG
served in a wide variety of leadership
facilities globally, which included
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Qatar Gas LNG Liquefaction, Malaysia
of Maryland in the United States. His
LNG Liquefaction, Nigeria LNG
Aker Kvaerner team served as the EPC
Liquefaction, Australia Northwest Shelf
contractor for Cameron LNG, Adriatic
LNG Liquefaction, Sonatrach LNG
LNG, Gulf LNG, and also completed
Liquefaction at Skikda and Arzew, Arco
a number of projects for Chevron and
Tangguh LNG Liquefaction, and others.
ConocoPhillips, among others.
He also led several different studies
During his time at KBR, Mr. Ray worked
and analyses for companies, such as
for eight years with the world’s best team
Trinidad LNG Liquefaction, Angola LNG
for engineering, design, and construction
Liquefaction, and a number of other
of the Air Products and Chemicals,
very significant projects. As a Senior
Inc. (APCI) Propane Pre-Cooled LNG
Process Engineer for KBR, Mr. Ray
liquefaction process. APCI is the number
gained valuable EPC experience and
one liquefaction technology provider
led the process engineering through
globally and is the process selected by
design, commissioning, and startup
SCT&E LNG for its project on Monkey
for several multi-billion dollar LNG
Island. Mr. Ray is currently serving as
facilities, including Nigeria Bonny
the Vice President of Engineering for
Island LNG Trains 2 & 4, Australia
SCT&E LNG and is primarily responsible
Northwest Shelf LNG Train 4, and
for the engineering, procurement,
two trains for Malaysia LNG Tiga.
planning, development, and construction
Because of his work at KBR, Mr. Ray
efforts for the company’s natural gas
was hired by Aker Kvaerner where
liquefaction and LNG export project.
he was effective as first the Business
In addition to his involvement with
Manager, and later the Project Manager,
the engineering and construction
for the EPC of several multi-billion dollar
industry, Mr. Ray is committed to
LNG facilities, such as Cameron LNG,
serving his community. He volunteers
Gulf LNG, and Adriatic LNG. Mr. Ray’s
his time weekly leading a mentoring
valuable contributions were recognized
group for men and rebuilds homes for
at Aker Kvaerner and he was promoted
disadvantaged and elderly people in
to the Director of Business Development.
the Houston, Texas, area. Mr. Ray is
In that leadership role, Mr. Ray’s team
a dedicated family man to his wife of
won the Pre-FEED and FEED contracts
23 years and the proud father of five
that led to the successful EPC bid of
children, three of whom are currently
Dominion’s Cove Point LNG $4 billion
studying at Texas A&M University, and
liquefaction facility off the east coast
two of whom are in high school.
SCT&E LNG, INC. EXCECUTIVE MANAGEMENT TEAM years, Mr. Smith has focused his career in the EPC sector of the energy industry concentrating on large scale energy and petrochemical projects. While developing commercial strategies to pursue and win EPC projects, Mr. Smith gained valuable experience in logistics, proposals, contracts, subcontracts, procurement, and construction. While serving in the United States Air
Eric Smith, Executive Director of Business Development Eric Smith is a motivated and effective energy executive with stellar accomplishments in the Engineering, Procurement, and Construction (EPC) and LNG industries. Growing up in an entrepreneurial family in a small town in Oklahoma, he spent his high school years working for the family furniture business his grandfather founded at the end of the Korean War. After graduating from high school, Mr. Smith joined the United States Air Force working as an intelligence analyst where he served proudly for nine years. Four years into his military service, he was recruited to join the National Security Agency (NSA) to manage multiple intelligence gathering teams supporting Operation Enduring Freedom (Afghanistan and Iraq). His contributions were recognized by the Director of the NSA and the Deputy Commander of the United States European Command. For the last eight
Force, Mr. Smith completed his Bachelor of Science Degree in Marketing and began studies toward a Master of Business Administration (MBA) from the University of Maryland. After honorably completing his military service, he finished his MBA and subsequently began working for the global engineering and construction company, Fluor. Due to his success at Fluor, Mr. Smith was later recruited by Mammoet USA for the commercial role of North American Business Development Manager where he developed and sold project logistics strategies that provided solutions for lifting, transporting, installing, and decommissioning large and heavy structures to EPC contractors and project owners. In this position, he leveraged his entrepreneurial upbringing to create business opportunities previously lacking for the company. Recognized for his contributions at Mammoet USA, Mr. Smith was recruited in 2011 by Foster Wheeler, a well-respected international EPC
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firm in Houston, Texas, where he began
13,000 employees. He was promoted
working as a Project Subcontracts
to the role of Senior Account Executive
Manager. His strong work ethic and
in 2014, placing him in an elite group
high-level capabilities were quickly
of energy industry executives who
noticed by senior executives, earning
excel in developing business and
him a promotion and assignment in
commercial strategies to advance their
the business development department
respective company goals. In his last
where he was challenged by the CEO to
year at Foster Wheeler, Mr. Smith led
develop a business plan to penetrate the
a team that supported an early stage
midstream markets. Within 12 months,
LNG developer successfully raise over
Mr. Smith identified and negotiated
$100 million for their LNG project.
multiple master service agreements,
Mr. Smith is currently serving as
generated sole source business
the Executive Director of Business
opportunities, and created strong long-
Development for SCT&E LNG and is
term business relationships for Foster
primarily responsible for the commercial
Wheeler in the midstream market.
development of the company’s
Because of his immediate success
Monkey Island LNG project. Mr. Smith
at Foster Wheeler, Mr. Smith’s
is responsible for identifying and
responsibilities quickly grew to
negotiating LNG offtake sales contracts,
include work in the petrochemical,
raising capital, and developing the EPC
gas monetization, and LNG industries,
strategies for the company. He works
and he was challenged with the
directly with and is a key advisor to both
task of increasing the company’s
the CEO of SCT&E LNG and its Board of
commercial exposure to the North
Directors. His professional experience
American petrochemical and LNG
in the energy industry combined with
markets. Ultimately this business
his ability to quickly build relationships
line became the largest revenue
and develop trust and rapport with
generating division in the company.
colleagues has made him a successful
In 2013, Mr. Smith led an 11-month
member of the SCT&E LNG team and
proposal effort that resulted in Foster
a well-respected player in the LNG
Wheeler winning a $2.4 billion EPC
industry. Outside of his career, Eric is a
project in the U.S. Gulf Coast, the largest
loving husband of eight years and proud
project in the company’s 100+ years of
father of three children. He resides in
business. With this accomplishment, he
Houston, Texas, and spends his free
achieved recognition as the #1 global
time with his family and playing golf.
sales person in a company of over
15021 Katy Freeway, Ste. 210, Houston, Texas, 77094 Tel. (713) 828-2800 - (800) 971-4315 Fax. (713)893-5143 www.sctelng.com