INR Corporate Presentation May 2014

8/10/2019 INR Corporate Presentation May 2014

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CORPORATE PROFILE

PETRONET LNG LIMITED

May, 2014


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OVERVIEW

Global & Indias Primary Energy Consumption Scenario Indias Gas Scenario, Infrastructure

Role of LNG in India

About Petronets

Dahej & Kochi Terminals

New Initiatives

Performance


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PRIMARY ENERGY CONSUMPTION (mtoe) - WORLD

Source : BP Statistical Review-June 2013

Fuel 2005 % 2012 %

Oil 3901 36 4130 33

Gas 2501 23 2987 24

Coal 2982 28 3730 30

Nuclear 627 6 560 4

Hydro 662 6 831 7

Renewables 84 1 237 2

Total 10708 100 12477 100

36%

23%

28%

6%

6% 1%

Oil

Gas

Coal

Nuclear

Hydro

Renewables

Year 2005

Year 2012

33%

24%

30%

4%7% 2% Oil

Gas

Coal

Nuclear

Hydro

Renewables


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PRIMARY ENERGY CONSUMPTION (mtoe) - INDIA

Year 2005

Source : BP Statistical Review-June 2013

Fuel 2005 % 2012 %

Oil 120 33 172 31

Gas 32 9 49 9

Coal 184 50 298 53

Nuclear 4 1 7.5 1

Hydro 22 6 26 4

Renewables 2.0 1 11 2

Total 367 100 563 100

33%

9%

50%

1%6% 1%

Oil

Gas

Coal

Nuclear

Hydro

Renewables

31%

9%53%

1%4% 2%

Oil

Gas

Coal

Nuclear

Hydro

Renewables

Year 2012


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INDIA A MAJOR GAS/LNG CONSUMER

13th largest gas consumer 55 bcm (~149 mmscmd)

4th largest LNG importer 20.5 bcm (~55 mmscmd)Economy growing at CAGR of about 6% with similar growth in Energy Consumption

Share of Natural Gas in Indian Energy basket to increase from 9% to 20% by 2025

Despite increase in domestic gas production- dependency on imported gas to increasesubstantially

Pipeline network- developing into a national grid- needs to grow faster, connecting newmarkets

2012-13 2013-14 2014-15 2015-16 2016-17 2019-20

Power 86 104 122 139 157 202

Fertilizer 60 60 60 72 97 106

City Gas 15 16 17 18 22 36

Industrial 20 20 22 25 27 35Petchem/Refineries/InternalConsumption 38 40 42 44 47 54

Sponge Iron/Steel 7 8 8 8 8 10

Total Realistic

Demand 227 248 272 307 358 443

Gas Demand (mmscmd)

SECTOR WISE PROJECTED GAS DEMAND

Source : Vision 2030, Natural Gas Infrastructure in India


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CURRENT GAS DEMAND &DOMESTIC SUPPLY SCENARIO

Source : Vision 2030, Natural Gas Infrastructure in India

101.1 102.5 111.26120.63 156.7 172.2

211.79 231.42227248

272307

358

442

625

713

0

100

200

300

400

500

600

700

800

900

1000

2012-13 2013-14 2014-15 2015-16 2016-17 2019-20 2026-27 2029-30

Demand Domestic Supply

(8.0) (8.8)(9.6)

(10.9)

(12.7)

(15.7)

(22.2)

(25.3)

(3.6) (3.6) (3.9) (4.3)(5.6) (6.1)

(7.5) (8.2)

(mmscmd) (bcf/day)


7/31Source: Vision 2030. / PLL analysis

103

53

156

47

156

28

156

55

156

72 119 147

202

303

High Potentialdemand,2015

358

Price of$11-12mmbtu

Medium Price of$13-14/mmbtu

275

Price of$16-17/mmbtu

85

143

Price of$19-20/mmbtu

Low

40

228

2012 yearendconsumption

Petronet Analysis 2013

Gas demand and supply, 2016mmscmd, at customer gate prices

LARGE DEMAND BUT SENSITIVE TO PRICEPETRONET ANALYSIS-2013

21 3 4

Imports

Domestic supplies

Sectorswithdemand

Industries CNGtransport

Refineries Industries New

fertilizerplants

Peakingpowerplants

Base loadpower

Prices at Crude of $ 110/Bbl

32


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India Shipping Summit 2013

Ennore

Mundra

Existing P/L Network : 13000 KMS (330 MMSCMD)Proposed additional P/L Network :13500 KMS (330 MMSCMD) by 2016-17


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LNG IN INDIA

Vision 2030, Natural Gas Infrastructure in

India envisageda GDP growth of 6%

Current GDP growth of about 5-6% translate into overallenergy demand growth at CAGR of 6-7%

Given Indias growing energy requirements & unlikelihood of matching increase in the domestic supplies, despite somesignificant oil & gas finds recently, the import dependence isonly going to accentuate sharply in the coming years

LNG Regas Capacities

Presently, Indias LNG import capacity around 23.0 mmtpathrough 4 terminals & meeting more than 35% of totalgas supply of the country


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PETRONET LNG LIMITED

Incorporated on April 2, 1998 Authorized Capital Rs. 1200 Crores , Paid up capital Rs. 750 Crores

Commencement of Commercial Operations - April, 2004

Equity 50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL ) 10% held by GDFI (part of GDF SUEZ) 5.20% ADB


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TOWARDS THE VISION

(In Crores)

5509 65558429

1064913197

22696

31467

37747

685 920 978944 1284 1914 2205 1582

0

5000

10000

15000

20000

25000

30000

35000

40000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Revenue EBIDTA

VisionTo be a key energy provider to the nationby leveraging unique position in the LNGvalue-chain with international presence

Revenue grew 32%EBITDA growth 13%

Create and manage world-classLNG infrastructure

Continue excellence in LNGbusiness

- Focus on higher capacityutilization and betteroperational efficiencies

- Diversify LNG sourcesDiversify business

- Wind Farm-

City-gas distribution/ directmarketing- Air Separation Unit- Solid cargo port at Dahej

Maintain highest standards ofbusiness ethics

Business Strategy


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DAHEJ LNG TERMINAL

Located at West Coast, State of Gujarat in the Gulf of Cambay

Commencement of Operations in 2004 Capacity (mmtpa) : 5.0 10.0 15.0

(2004) (2009) (2016)

Truck Loading facility can handle 3000 loadings/ yr. LNG Cargoes unloaded : 1200+ cargoes Capacity expansion to 15 mmtpa

Second Jetty : Commissioned on April 18, 2014 EPC Award : Storage Tanks Contract & Regas

(Regas & Storage Capacity) Contract AwardedScheduled Completion byNovember 2016

Expanded Capacity sold to GAIL, GSPC, IOCL & BPCL


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13

DAHEJ PLANT FACILITY


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DAHEJ SECOND JETTY


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VAPORISATIONFACILITIESLNG BY ROAD

SATELLITE HUB

SATELLITE LNG HUB & LNG BY ROAD


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KOCHI PLANT OVERVIEW


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LNG Terminal located in Special Economic Zone with Co-developer status

Capacity 5.0 mmtpa

Tied up 1.44 mmtpa LNG from Exxon Mobils Gorgon Project

Time Charter Party for 4 th vessel selected

Kochi terminal commissioned in September, 2013

Truck loading facility available

Currently operating at very low capacity in absence of pipelinesconnecting Bangalore & Mangalore markets

KOCHI LNG TERMINAL


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KOCHI - FACILITIESKOCHI - FACILITIES


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1919

KOCHI PIPELINES

BANGALOREMANGALORE

KOOTTANAD

KOCHI

COIMBATORE

SALEM

KRISHNAGIRI

FACT 1

FACT 2

KOZHIKODE

KANNUR

KASARGOD

ERODETIRUPPUR

LEGENDCUSTOMER LOCATIONKKBMPL PHASE IKKBMPL PHASE IIKOCHI-KAYAMKULAM PL

NTPC,KAYAMKULAM

States: 03Districts:17

4

PHASE-II CUSTOMERS IN KERALA

1. Kasargod power plant2. Western India plywoods Kannur

3. Kottakkal Aryavaidya sala, Kottakal

4. Indsil & Precoat mills, Palghat

5. Apollo Tyres, Perambra

6. Cheemeni power plant, Kasargod

2

1

3

5

6

PHASE-I CUSTOMERS

a. FACT, Udyogmandal

b. BSES, Kochi (Reliance Energy)

c. BPCL, Kochi

d. KSEB, Brahmapuram

e. FACT-II, Kalamssery

f. TCCc

f

bd

No decisionDelayed Completed


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NEW TERMINAL AT EAST COAST

Proposed Capacity: 10 mmtpa

Initial Capacity : 5 mmtpa

Location: Gangavaram, AndhraPradesh

DFR, FEED and various other pre-

project activities completed along

with obtaining of clearances Estd. Project cost: 5000 Crs.

Gangavaram


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GANGAVARAM

Proposedberth

location

Proposedland for plantsitting


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DIRECT MARKETING

Petronet exploring opportunities to supply LNG to Coastal areaconsumers through small LNG Vessels in India andneighbouring countries

Direct Marketing by focusing on the following areas:

Signed HOAs & supplied RLNG to bulk end consumers inPower, Refineries & Fertilizers Sectors

LNG/LCNG supplies through Trucks, to LNG hubs, SatelliteStations at customers premises in regions not serviced bypipelines under the Brand name of


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PERFORMANCE GRAPH

Turnover Crores

19453837

5509 6555

842910649

13197

22695

31467

37747

0

5000

10000

15000

20000

25000

30000

35000

40000

-28

195

313

475518

405

620

1058

1149

711

-200

0

200

400

600

800

1000

1200

1400Profit Crores


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PERFORMANCE BASED ON EMPLOYEE PARAMETERS2013-

14 *2012-13 2011-12 2010-

11

No. of Employees 427 397 309 276Turnover/ employees ( INR Crores) 88.4 79.26 74.1 47.64

Profit Before Tax / Employee ( INR Crores) 3.19 4.80 5.6 3.93

Profit After Tax(INR Crores) 1.66 2.89 3.45 2.23

Employee Remuneration cost* (as % ofProfit)

6.55% 3.22% 2.83% 3.37%

A Snapshot of Manpower Statistics

Attrition rate: 2013-14 * : 9.36 %Training & Development : 6.89 Mandays / Employee

Location Skill Set Others

Corporate: 94 Professional : 93 Average Age: 34 (48% employees in31-40 years age)

Dahej : 202 Technical : 295 69% are Technical & 22% professional

Kochi : 131 Office Support : 37 Average years of association ofemployees with Company 5 years

* As on 31.03.2014


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Developing Infrastructure Facilities for displaced persons at RMP Todu Canal

Kalamukhi Junction Rehabilitation Area in Puthuvypeen Sponsored the distribution of books and other study material to nearly 70 schools ofthe area benefitting 22,000 students.

Conducted Eye Screening & Cataract Operation & Dental Camp for Puthuvypeen& neighboring villages

Sponsoring of local events like boat race, cultural and sports events in schools Sponsor purchase of school bus for Kerala Blind School.

Concreting & metalling of roads, side protection & repair/construction of culverts,footpaths in Puthuvypeen village

Installation of Solar powered high mask lights in Puthuvypeen

CSR PARTNERING WITH COMMUNITY - KOCHI


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INR Corporate Presentation May 2014

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