Study on a Delvina gas field power plant

VANCOUVER, Oct. 14 – Stream Oil & Gas Ltd. announced positive results from the Poyry Energy Srl “Delvina Gas Power Plant Project” scoping study evaluating the installation of a 150MW gas fired power plant on the Delvina Gas Field in southern Albania.
Poyry Energy is a global consulting and engineering company and a worldwide leader in the energy sector. Poyry’s core areas of expertise are: management consulting, hydropower, renewable energy, power & heat, oil & gas.
Poyry holds a strong position within engineering and project services for nuclear technology, transmission and distribution as well as industrial processes.
The Delvina Power Plant Project includes the conversion into electricity by a combined cycle plant located in close proximity to the Delvina gas field.
Initially, the size of this plant would to be around 100 MW, with an extension to 150 MW at a later stage. The gas consumption of a 100 MW power plant at base load is around 480 MNcm3/d, which is in line with Company’s gas production forecast from the Delvina gas field.
According to the study, overall investment cost for a 100MW station is approximately 90 million Euros and with a life time of 20 years is economic even under the assumption of current local pricing for gas at around $15Nmcf which represents three fourths of the operating costs. The results of this scoping study suggest that an investment a gas fired power plant as planned the Company in Albania is viable.
Albania needs to diversify its primary energy supply for electricity generation. The country currently depends on hydropower plants with varying generation capacity caused by fluctuating precipitation. Albania needs additional domestic power generation capacity due to high demand growth. Capacity shortages are likely to result in high electricity prices. There is an attractive investment climate for foreign direct investment in the power sector.
Many investors in the power sector are targeting the country and recent developments show that the Albanian government is favoring foreign investment. The current state of the generation, transmission and distribution assets requires significant investment.
Electricity Regulator and permitting scheme have been defined. The existence of an independent electricity regulating agency and the availability of formal permitting procedures are encouraging signs for investors in the power sector.
The Company has initiated the necessary steps in order to obtain the required permits and has been in contact with several strategic partners in order to consider its options to proceed to a full feasibility study.
Stream is a Canadian-based emerging oil and gas production, development and exploration company with assets in Albania focusing on the re-activation and re-development of three oil fields, and a gas and condensate field, all of which are in production.
Stream has entered into Petroleum Agreements with Albpetrol Sh.A. the Albanian state exploration and production company, and is conducting a staged evaluation, takeover and redevelopment program under four separate 25-year license agreements with Albania’s National Petroleum Agency. Under these Agreements, Stream has the rights to take-over the operations of all wells in the Gorisht-Kocul, Ballsh-Hekaj, and Cakran-Mollaj oil fields, and the Delvina gas field, and produces the remaining reserves.