Energy World Corporation Ltd (EWC) is involved in the exploration,
development and production of gas, oil and LNG and the operation and
maintenance of power stations, with operations in Australia, China,
Indonesia, Papua New Guinea and the Philippines.
With a Market Cap of $AU 726 million, the company’s focus is on
building modular LNG plants delivering clean and green energy to the
Asia Pacific region. Over the next two to five years, the EWC will be
spending $AU 700 million on power station upgrades and expansion into
new areas of the Asia Pacific region.
Filling the Gap for Clean Fuel
“It’s clear that Asia wants clean and green fuel for its power
stations and industry,” says Stewart Elliott, Chairman, CEO and Managing
Director of EWC, “but no-one had developed a market for the
Philippines, Indonesia and even parts of China. We aimed to fill this
gap but first we needed a standardised, economic and efficient
liquefaction system. To develop our modular LNG system we approached
Chart in the US for their processing and cold box system and Siemens for
their electric drive compressor system and balance of plant. With this
technology, we were able to achieve our aim of producing an economic and
efficient system and began developing our own gas in Indonesia and
Papua New Guinea. We also secured a license from Gaztransport Technigaz
to use its LNG tank technology for land based membrane tanks.”
Energy agencies are forecasting significant increases in natural gas
demand over the next 20 years. World demand for natural gas has grown
by about 2.6 per cent per year over the past decade, but in Asia, the
Middle East, Latin America and Africa it has average seven per cent over
the same period. EWC’s target is to become a leader in modular LNG
development and a significant supplier of natural gas to Asian markets.
EWC’s Modular LNG allows for a simple, elegant liquefaction setup
with a relatively small footprint. Through innovative design, EWC was
able to downsize typical LNG train sizes – moving from the grandfather
clock to the pocket watch. By using a standard design, more and more
components can be shop fabricated, allowing for better quality, cost
effectiveness and reduced installation time.
Benefits of Modular LNG
The benefits of Modular LNG incorporate:
Significantly lower capital cost requirement (easier financing) with
faster construction and faster LNG to market, allowing an earlier
revenue stream during development of the gas field.
Standardized “off the shelf” design, proven technology and minimal (re)engineering.
Maximized shop fabrication, minimized field construction – a “plug and play” concept.
Less complex design means simpler plant operation, improved turndown
capability and lower maintenance downtime with multiple production
Flexibility to incorporate additional modular LNG trains to add
capacity to an LNG facility to suit the particular characteristics of a
given gas field, allowing deferred investment.
Plant can be dismantled and relocated when a gas field is depleted, allowing reduced investment risk.
Ability to exploit stranded gas fields that are not considered commercially viable for conventional baseload LNG facilities.
The Modular approach is suitable for both onshore and offshore
applications. For offshore applications EWC has specialist shipping to
develop gas fields offshore, liquefy the gas onsite and relocate it via a
storage mother ship.
British born Elliott originally studied civil engineering, moving on
to working on major construction projects in Australia, a background
that allows EWC to build projects effectively to budget. In 1985,
Elliott was sent to Hong Kong by the construction company he was then
working with and set up Consolidated Electric Power Asia, which built up
to become the largest private power company in Asia, with projects in
China, the Philippines, Indonesia and India.
“The first coal-fired plant we built in China set a world record,”
Elliott recalls. “Seven hundred megawatts in 22 months at a time when it
used to take years to build a power station in China!”
Consolidated Electric Power Asia was bought out by Southern Electric
in 1997, and from there Elliott and other members of the company’s
management team formed Energy World International to look for other
opportunities in Asia.
“One of the companies that requested some funding was Energy Equity,”
recalls Elliott. “They had financial problems, with debts of $AU120
million and another $AU40 in foreign exchange loss. Their bankers had
called in the loan. We stepped in and refinanced the company with
convertible note and I put in a personal loan of $AU35 million in
convertible note on the basis that we got involved with management and
got the company sorted out. We repaid the bank plus interest and
expenses and squared the foreign exchange so there was no foreign
exchange loss and changed the company name to Energy World Corporation.
Due to our success with the banks we were able to raise the funds to buy
out El Paso in Indonesia. This then enabled us to develop our assets in
Indonesia and develop the Modular LNG programs.”
Elliott believes that the future of LNG in Asia is very positive,
with considerable demand in Indonesia, the Philippines, Sri Lanka,
Japan, Korea and China.
“To service this new market,” says Elliott, “it must be developed at
‘both ends’, i.e. supply, production and the receiving terminals and
distribution of the new LNG. We believe that at the moment, insufficient
attention is being given to the receiving terminals and distribution
for delivering of gas to the Asian markets. Along with our strategic
alliance partner, Chart, we are working at ‘both ends’ to develop the
infrastructure to facilitate these new and exciting markets.
“The world is crying out for green and clean fuel,” adds Elliott,
“but if you look in the Yellow Pages you can’t find LNG. We want to give
companies that want to buy small quantities of LNG each year the chance
to enable them to change over to cleaner burning, gas-fired stations.”