PETRONET LNG LIMITED
OVERVIEWOVERVIEW
Global & India’s Primary Energy Consumption Scenario
India’s Gas Scenario, Infrastructure & Prices
Role of LNG in India
About Petronet’s About Petronet’s
Dahej & Kochi Terminals
New Initiatives
Performance
Corporate Social Responsibility
2
PRIMARY ENERGY PER CAPITA CONSUMPTIONPRIMARY ENERGY PER CAPITA CONSUMPTION
Source : BP Statistical Review June 20103
32%
1%5%
INDIAOil
Gas
WORLD VS. INDIAN ENERGY SCENARIOWORLD VS. INDIAN ENERGY SCENARIO
34%
29%
5%
7%
WORLDOil
Gas 32%
10%52%Coal
Nuclear
Hydro
24%
29%Gas
Coal
Nuclear
Hydro
Source : BP Statistical Review, June 20104
INDIA‘s CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIOINDIA‘s CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO
253.4
306.4341.1
381.0
250.0
300.0
350.0
400.0
5
Demand – Mercados AnalysisSupply – Directorate General of Hydrocarbons (DGH)
178.9
146 155191.6 198.4
202.9
0.0
50.0
100.0
150.0
200.0
2010-11 2011-12 2012-13 2013-14 2014-15
Demand
Supply
(In MMSCMD)
-
50.00
100.00
150.00
200.00
250.00
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Gas Demand (MMSCMD)
SECTOR WISE PROJECTED GAS DEMANDSECTOR WISE PROJECTED GAS DEMAND
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Power Fertilizer City Gas Petchem-Refinery Sponge Iron
2010-11 2011-12 2012-13 2013-14 2014-15
Power 87.71 149.11 185.52 212.73 243.34
Fertilizer 49.39 57.48 68.08 68.08 68.08
City Gas 13.70 17.53 22.44 28.72 36.76
Petchem-Refinery 24.44 25.42 26.43 27.49 28.59
Sponge Iron 3.71 3.82 3.93 4.05 4.17
Total 178.94 253.36 306.41 341.08 380.95
Source: Mercados Analysis, 20106
PREVAILING GAS PRICESPREVAILING GAS PRICES
PRODUCERLAND FALL
PRICEMARKETING
MARGINCENTRAL SALES
TAXTRANSMISSION
CHARGESSERVICE
TAXDELIVERED PRICETO CUSTOMERS
US$/MMBTU (US$/MMBTU) 2% (US$) US$/ MMBTU 10.30% (US$) (US$/MMBTU)
ONGC/Oil APM(including Royalty) 4.20 - 0.08 0.60 0.06 4.94(including Royalty) 4.20 - 0.08 0.60 0.06 4.94
ONGC C – Series(including Royalty) 5.25 0.12 0.10 0.60 0.06 6.13
PMT 5.65 0.11 0.12 0.60 0.06 6.54
Other JVS (Ravva) 3.50 0.11 0.07 0.60 0.06 4.34
RLNG (Approx)* 6.50 0.17 0.15 0.60 0.06 7.49
Reliance KG6 4.20 0.14 0.09 1.80 0.19 6.42
8Subject to change as per Company & GOI Policy* - Depending on prevailing market price
THE LNG CHAINTHE LNG CHAIN
UPSTREAMDOWNSTREAM
Production
Separation GasTreatment
SUBSURFACEDEVELOPMENT SURFACE DEVELOPMENT
GasTransport
LIQUEFACTION, STORAGEAND LOADING
RECEPTION, STORAGE& REGASIFICATION
Liquefaction plant
LNG storageLoading Unloading
LNG storage
Regasificationplant
Gastransmission
TRANSMISSION &DISTRIBUTION
SHIPPING
Gas Reserves
LNG Production
Gas Liquidsstorage
For export orlocal use
Regasification TransportationOwner / Operator
• Natural gas extraction & purification.
• LNG liquefaction trains with adequate capacity .
• LNG Storage capacity.
• LNG Loading facilities.
• LNG unloading, storage &
regas terminal .
• Gas transportation network
Project Facilities to be Constructed
• LNG
Carrier
Cryogenicvessels
LNG ProducerGas field & extraction
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LNG IN INDIALNG IN INDIA
High Power group study ‘Hydrocarbon Vision 2025’ laid exploration & production and demand
supply scenario of oil & gas with GDP growth of 5-6%.
Current GDP growth of 7–9% translate into overall energy demand growth at CAGR of 7.50%.
Given India’s growing energy requirements and unlikelihood of matching increase in the domestic
supplies, despite some significant oil & gas finds recently, the import dependence is only going to
accentuate sharply in the coming years.accentuate sharply in the coming years.
LNG Regas Capacities
Dahej LNG Terminal of 10.0 MMTPA managed by Petronet LNG Limited.
Hazira LNG Terminal of 3.5 MMTPA operated by Shell & Total.
LNG terminal at Dabhol of 2.5 MMTPA likely commissioning 2012.
Petronet’s Kochi of 5.0 MMTPA likely commissioning 3rd Qtr., 2012.
Presently, India’s LNG import capacity is around 13.5 MMTPA through its two terminals & meeting
approx. 20% of total gas supply of the country.
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PETRONET LNG LIMITEDPETRONET LNG LIMITED
Petronet LNG incorporated on April 2, 1998 to play an important role in the
Hydrocarbon Sector to enhance energy security of the Country.
50% Equity held by Oil & Gas PSUs (ONGC, IOC, BPCL and GAIL )
10% Equity held by GDFI (part of GDF SUEZ) 10% Equity held by GDFI (part of GDF SUEZ)
5.20% & 34.8% held by ADB & Public respectively.
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Located at West coast, State of Gujarat (India) in the Gulf of Cambay.
Dahej terminal commenced operations in 2004 with the nameplate capacityof 5.0 MMTPA.
Capacity expanded to 10.0 MMTPA in July, 2009.
Terminal comprising :
2.5 KM long Jetty with unloading facilities
DAHEJ LNG TERMINALDAHEJ LNG TERMINAL
2.5 KM long Jetty with unloading facilities
Four LNG storage tanks (of 148000 CBM each)
Regas facilities
Truck loading facilities for onland sales.
7.5 MMTPA sourced through Long Term Contract with RasGas, Qatar withback to back sales arrangement with GAIL, IOCL & BPCL.
Additional LNG being sourced through Spot /Short Term Contracts & sold
to Offtakers/ Bulk Buyers.
Connected to major trunk pipelines HBJ & DUPL of GAIL and Gujarat’s
GSPL Network.12
DAHEJDAHEJ FACILITIESFACILITIES
STVSTV JETTY WITH LNG SHIPJETTY WITH LNG SHIP
JETTYJETTY WITHWITH TUG BOATSTUG BOATS
Existing marine facilities adequate for 10.5 -
11.0 MMTPA of LNG.
Developing second LNG Jetty to enhance
capacity of Dahej Terminal.
SECOND LNG BERTH AT DAHEJSECOND LNG BERTH AT DAHEJ
New Jetty helps mitigating risk of operating on
single Berth
Facilitating berthing of tankers up-to 260,000
CBM (Q-Max)
Scheduled Commissioning – III Qtr, 2013.
Estimated Investment – US$ 200 Million.
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LNG TRUCK LOADING FACILITIESLNG TRUCK LOADING FACILITIES –– DAHEJDAHEJ
Truck Loading facility at Dahej terminalwas commissioned in August 09, 2007 asa Pilot Project.
Currently about 4-5 trucks are loaded ondaily basis & total of around 2500 Truckshave been loaded till date.
WEIGH BRIDGEWEIGH BRIDGE
have been loaded till date.
Facility can handle 2500 loadings / Yr.
Presently LNG (by road tanker) is beingsold to limited consumers in Westernregion.
Fast developing market with several newconsumers (up to 800 KMS) are beinglined up for off-take of LNG for industrialand city gas use.
VAPORISATION FACILITIESVAPORISATION FACILITIES
KOCHI LNG TERMINALKOCHI LNG TERMINAL
LNG Terminal part of newly created Special Economic Zone & Petronet one of the Co-developers.
Capacity - 5.0 MMTPA.
Tied up 1.44 MMTPA LNG from Exxon Mobil’s Gorgon Venture in Australia.
Work for building two LNG Storage Tanks awarded to IHI, Japan. Work for building two LNG Storage Tanks awarded to IHI, Japan.
Work related to Regasification Facilities awarded to CTCI, Taiwan.
Work related to Marine Facilities awarded to Afcons Infrastructure Limited.
Progress on schedule, overall completion more than 90%, Scheduled Commissioning in3rd Qtr. , 2012.
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SOLID CARGO PORT PROJECTSOLID CARGO PORT PROJECT-- DAHEJDAHEJ
Petronet holds 26% Equity in Joint Venture Company with the Adani Group to developa Solid Cargo Port in Dahej (Adani Petronet (Dahej) Port Pvt. Limited).
Capacity to handle 20 MMTPA of dry bulk cargo/year (Coal, Steel and Fertilizers).
Phase I commissioned in September, 2010 and Phase II mechanical completionscheduled shortly.scheduled shortly.
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Arial view of Vessel at Berth No.1Arial view of Vessel at Berth No.1Project cargo on 2.4 KM Jetty ApproachProject cargo on 2.4 KM Jetty Approach
INTEGRATED POWER PLANT AT DAHEJINTEGRATED POWER PLANT AT DAHEJ
Completed Detail Feasibility Report for a 1200 MW Power Plant of 3 x 356 MW (total1068 MW) , Single shaft CCGT.
Land Acquisition & Environment Clearance in process , market analysis being carriedout.
Anticipated Project cost of about US$ 870 Million. Anticipated Project cost of about US$ 870 Million.
Project to be domiciled on the Balance Sheet of Petronet.
Primary fuel for Project to be sourced from international markets.
Aggregate gas requirement of 1.0–1.1 MMTPA.
Anticipated Implementation time-frame of 36 months from the FID.
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DIRECT RLNG MARKETINGDIRECT RLNG MARKETING
Petronet plans to foray into Direct Marketing by focusing on the following areas:
Entered into direct RLNG marketing by signing HOA with bulk end consumer in Powerproducers, Industrial consumers , Fertilizers Producers etc
LNG/LCNG i.e. LNG through Trucks and supplies at LNG hubs, customer’s premises inregions not serviced by pipelines.
LNG/RLNG trading on International and domestic platform.
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FINANCING STRUCTURE (US$ MILLION)FINANCING STRUCTURE (US$ MILLION)
Particulars DahejTerminal
KochiTerminal
2nd Berth atDahej
Total
Shareholders FundEquity Capital/Internalaccruals/Premium
250 270 60 580
accruals/Premium
Debt 550 630 140 1320
Total Means of Finance 800 900 200 1900
*Petronet generates approx. US$ 125 Million cash from its existing operations. Afterservicing shareholders, the balance will be used to finance Expansion Projects.
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NET WORTH (MILLION USD)
PERFORMANCE GRAPHPERFORMANCE GRAPH
287
322 321
384
412
300
350
400
450
SALES (TBTU)
431
486
583
500
600
700
125
247
287
0
50
100
150
200
250
300
2004-05 2005-06' 2006-07 2007-08 2008-09 2009-10 2010-11
191
233
277
352
431
0
100
200
300
400
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
PERFORMANCE GRAPHPERFORMANCE GRAPH
2305
2849
2500
3000
TURNOVER (Million USD) PAT (Million USD)
103
113
135
120
140
160
423
834
1198
1425
1772
0
500
1000
1500
2000
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
-6
42
68
88
-20
0
20
40
60
80
100
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
CSRCSR --THETHE JOURNEY HAS JUST BEGUN……………JOURNEY HAS JUST BEGUN……………TOWARDS AN INCLUSIVE SOCIETYTOWARDS AN INCLUSIVE SOCIETY
• Participative community development programmes with GIDC Luvara & Lakhigam villages
• CODEGAZ, the CSR arm of our strategic partner GDF Suez supports our cause.
Health & Sanitation
• Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage.
• Preventive and Social medicine aids (includes primary health centre).
Education and Employment generation programs
• Construction of School , Scholarship & Vocational Training.• Construction of School , Scholarship & Vocational Training.
• Sponsorship of differently abled children of Tamanna School & inauguration of Petronet LNG Centrefor Vocational Rehabilitation.
• Indirect employment for local villagers in the area of Housekeeping & Horticulture.
Community Development
• Renovation of personal facility & fencing at Panchayat office of Luvara Village, Gujarat.
• Govt. Development Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre.
Thank You
Dahej PlantPetronet LNG Limited
GIDC Industrial Estate,Plot No. 7/A, Dahej,
Taluka Vagra,Distt. Bharuch
Gujarat - 392130
Corporate OfficePetronet LNG Limited,
1st Floor, World Trade Centre,Babar Road, Barakhamba Lane,
New Delhi – 110001www.petronetlng.com
For any other info. :[email protected]
Ph: 91-11-23411411
Kochi SitePetronet LNG Limited
Survey No. 347,Puthuvypu P.O. ,
Kochi, Kerala - 682508
Thank You