LAKE CHARLES CLEAN ENERGY LLC PROJECT HIGHLIGHTS
Feedstock At design, annual usage of approximately 2.4 million tons of petroleum coke or petcoke. Petcoke is an energy-rich waste byproduct produced from refining heavy crude oil, high in sulfur content. 25 percent of world’s petcoke is produced within 300 miles of the LCCE site. Gasification Technology LCCE will use advanced gasification technology to avoid harmful emissions while extracting energy from petcoke. LCCE will cleanly convert the feedstock chemically under high temperature and pressure to create clean synthesis gas with very low emissions. Methanol, Hydrogen and Byproduct Production LCCE is expected to be one of the world’s lowest-cost producers of methanol. Over 1 million metric tons of methanol will be produced each year, with the majority already committed under long-term off-take contracts. All of the hydrogen and argon produced annually will be sold under long-term off-take agreements. Approximately 400 thousand tons of sulfuric acid will be produced annually from the sulfur in the feedstock and is expected to be sold into the industrial market under long term off-take agreements. Annual Liquefied Carbon Dioxide (CO2) Production Facility to employ state-of-the-art technology to capture and sell approximately 90 percent of its CO2 for enhanced oil recovery. Approximately 4.5 million tons annually will be sold to Denbury Onshore LLC for use in enhanced oil recovery operations in the Gulf Coast Region (estimated to result in additional domestic oil recovery of 6 million to 9 million barrels.) Emissions Performance Highlights As a result of using gasification technology and state-of-the-art controls, permitted emissions will create zero liquid discharge of gasification process water and limited Sulfur Dioxide or Nitrogen Oxides emissions. In addition, 90 percent of the Carbon Dioxide will be captured and used for enhanced oil recovery operations.
G2X ENERGY, LLC G2X Energy - Houston based company Option to lease 200 acres (up to 3 years) Plant site located on Industrial Canal west of Alcoa $1.2 billion natural gas to gasoline plant
G2X is mostly owned and controlled by two major other companies - Southern Chemical Company and The Proman Group. Proman is a large international company based in Switzerland, Germany, and Trinidad, which constructs, operates, and maintains large methanol and other manufacturing facilities.
G2X ENERGY, LLC Proman is the largest world-wide manufacturer of methanol. Southern Chemical is also a major producer of methanol. G2X has obtained from ExxonMobil a proven process of manufacturing methanol from natural gas and then further processing it to produce gasoline. The plant will produce 12,500 barrels of gasoline per day. The gasoline will be sent out by pipeline and by barge or vessel.
NAVIGATION Channel Dredging and Funding Beneficial Use of Dredged Material The Future
DREDGING Bar Channel – Currently being dredged. Mile 5 to 17 – Dredged to 300’ width rather than 400’ Mile 17 to 34 – To be advertized in first quarter of 2013 –Port committed to a beneficial use project to get DNR approval Mile 34 to 36 – Recently awarded after protest
FUNDING FY 12 – Channel dredged to less than authorized width FY 13 –Substantially below need ($15.7m vs. $50.9m) –Sequestration impact unknown ($14.4m @8%) –DMMP funded at $5.2m vs. $12.9m needed –Continuing Resolution may prevent use of DMMP funds in FY 13 FY 14 – No budget yet; Need $50m for O&M and DMMP
BENEFICIAL USE OF DREDGED MATERIAL Cameron Shoreline Calcasieu Lake – Dribble vs. Landslide –Port’s 125,000 cubic yard commitment Other Sites –Designated in DMMP –Identified through Local Input
FUTURE ISSUES Funding –Corps’ O&M Budget must be increased –The full amount in the Harbor Maintenance Trust Fund must be used Channel Widening and Deepening –Without Channel widening, increased vessel count will require one-way traffic –If the Channel is widened, should it be deepened, too
SUMMARY INCOME STATEMENT Actual _ _ 2011 _ _ _ 2011 _Preliminary __ _2012_ __ AmendedBudget Budget __ _2013___ Operating Revenues $ 36,930,196 $ 33,654,617 $ 31,840,280 $ 32,098,215 Operating Expenses $ 33,637,274 $ 31,248,111 $ 33,336,529 $ 36,154,149 Operating Income (Loss) $ 3,292,922 $ 2,406,506 ($1,496,249)($4,055,934) Net Income (Loss) $ 7,682,488 $ 4,988,280 $1,341,151($1,185,594) ** Cash Flow $ 18,866,560 $ 16,287,925 $ 13,517,060 $12,738,346 ** Excludes Grants, Mark to Market adjustments and non-cash write off of assets
GREATER BATON ROUGE 2011 PORT OF NEW ORLEANS 2011 PORT OF LAKE CHARLES 2012 Operating Revenues$ 5,891,664$ 43,404,494$ 33,654,617 Operating Expenses (excluding depreciation) 4,781,106 33,293,475 20,264,127 Depreciation 2,516,190 19,639,047 10,983,984 Total Expenses 7,297,296 52,932,522 31,248,111 Operating Income (Loss) (1,405,632) (9,528,028) 2,406,506 EBITDA $ 1,109,558$ 10,111,019$ 13,390,490 COMPARISON BY PORT
As of December 31, 2012 (unaudited) As of December 31, 2011 (audited) Unrestricted Cash & Investments Restricted Cash & Investments Trade Accounts Receivable Governmental Receivable Other Current Assets $ 47,267,467 1,000,000 6,457,623 1,713,519 4,817,754 $ 44,941,925 53,599 6,251,150 2,959,828 4,809,513 CURRENT ASSETS 61,256,363 59,016,015 Fixed Assets Construction in Progress Accumulated Depreciation 369,685,369 43,263,628 (160,070,407) 364,417,738 25,022,114 (154,219,803) FIXED ASSETS AND OTHER ASSETS 252,878,590 235,220,049 TOTAL ASSETS 314,134,953 294,236,064 Current Liabilities Non-Current Liabilities Retained Earnings 12,427,717 2,388,902 299,318,334 9,861,557 1,972,159 282,402,348 TOTAL LIABILITIES & EQUITY$314,134,953 $294,236,064 BALANCE SHEET AS OF DECEMBER 31, 2012
CASH OUTLOOK Investments 1/1/2013 $ 44,336,000 +Cash Flow $ 12,738,000 -Capital Spending – Port Funded (Total Projects & Equipment less expected funding by PPP / CO / Other on existing and future projects) ($ 50,503,000) Investments 12/31/13 $ 6,571,000
ANTICIPATED BOND ISSUE TIMEFRAME April – Submit initial resolution to Port Board for approval May – File application with LA State Bond Commission June – Anticipated final approval from the LA State Bond Commission July – Submit Bond Financing documents to Port Board for approval September – Bond pricing October – Closing
PORT PRIORITY PROJECTS FUNDED New Stacker/Reclaimers @ BT-1 (Complete May 2013) $9M State $10.8M Port Loop Tracks Phase II (Under Construction) $5.4M State $2.6M Port Ladder Tracks (Under Construction) $1.2M State $2.9M Port Wharf & Transit Shed #1 (Design Phase) $9.6M State $9.1M Port
PORT PRIORITY PROJECTS REQUESTED New Dry Bulk Dock @ BT-1 –$5.4M State (requested) –$34.6M Port
CAPITAL OUTLAY FUNDED Command & Control Center (Under Construction) –$290,000 State approved –$1,070,000 Port via Federal Grant Dockside Monopiles (LEEVAC) $153,000 State $101,000 Port
CAPITAL OUTLAY REQUESTED Sallier Lead Track Relocation –$1M Berth 8 Dredging –$250,000 New Administration Building –$500,000