Water en Energiebedrijf Aruba N.V. (WEB) is planning to develop an LNG import terminal to provide LNG/gas to a power plant with a capacity of around 200 MW. WEB engaged K&M to assist it identify and analyze various LNG import terminal options and perform pre-FEED and class 4 cost estimates on its preferred option. K&M’s work included estimating demand for LNG, identifying 15 options for importing LNG (including FSRU, FSRBs, FSUs, onshore regasification and storage, two sites, gas pipelines, LNG trucking, and ISO containers) and performing conceptual design for each option. K&M developed class 4 cost estimates and a model for estimating LNG ex-ship price for each option (based on the optimal LNG supply route and optimal size LNGC), and performed preliminary environmental and social impact analyses of each option. K&M developed a financial model to estimate the levelized cost of gas at the power plant battery limit for each option and identified and analyzed several options for developing the terminal, including EPC and Build Operate Transfer (BOT) contracts.
Based on this analysis, K&M recommended an onshore storage and regasification option with a terminal that can receive LNG carriers of up to 8,000m3 and a 2 kilometer pipeline to deliver gas to the power plant. Based on K&M’s results, WEB decided to proceed to performing FEED on the LNG terminal and competitively procuring the LNG supply.