LNG INFRASTRUCTURE IN INDIA
Transcript of LNG INFRASTRUCTURE IN INDIA
CORPORATE PROFILE
PETRONET LNG LIMITED
May, 2014
OVERVIEW
Global & India’s Primary Energy Consumption Scenario
India’s Gas Scenario, Infrastructure
Role of LNG in India
About Petronet’s
Dahej & Kochi Terminals
New Initiatives
Performance
6%
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
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
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 35
Petchem/Refinerie
s/Internal
Consumption 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
CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO
Source : Vision 2030, Natural Gas Infrastructure in India
101.1102.5 111.26 120.63
156.7 172.2
211.79 231.42227248
272
307
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)
Source: Vision 2030. / PLL analysis
103
53
156
47
156
28
156
55
156
72119 147
202
303
High Potential demand,2015
358
Price of $11-12 mmbtu
Medium Price of $13-14/ mmbtu
275
Price of $16-17/ mmbtu
85
143
Price of $19-20/ mmbtu
Low
40
228
2012 year end consumption
Petronet Analysis 2013Gas demand and supply, 2016
mmscmd, at customer gate prices
LARGE DEMAND BUT SENSITIVE TO PRICE
PETRONET ANALYSIS-2013
21 3 4
Imports
Domestic supplies
Sectors with demand
▪ Industries▪ CNG
transport
▪ Refineries▪ Industries▪ New
fertilizer plants
▪ Peaking power plants
▪ Base load power
Prices at Crude of $ 110/Bbl
32
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
LNG IN INDIA
“Vision 2030, Natural Gas Infrastructure in India” envisaged
a GDP growth of 6%
Current GDP growth of about 5-6% translate into overall
energy demand growth at CAGR of 6-7%
Given India’s growing energy requirements & 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
LNG Regas Capacities
Presently, India’s LNG import capacity around 23.0 mmtpa
through 4 terminals & meeting more than 35% of total
gas supply of the country
PETRONET LNG LIMITED
Incorporated on April 2, 1998
Authorized Capital US$240 Million, Paid up capital US$150 Million
Commencement of Commercial Operations - April, 2004
Equity
50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL ) 10% held by GDFI (part of GDF SUEZ) 5.20% ADB
(IOCL, GAIL,
BPCL, ONGC)
50%
GDFI
10%
ADB
5.2%
Public
34.8%
TOWARDS THE VISION
(All Values in US$ Million)
0
1000
2000
3000
4000
5000
6000
7000
11021311
16862130
2639
4539
5827
6291
137 184 196 189257 383 408 264
Revenue EBIDTA
Vision
To be a key energy provider to the nation by leveraging unique position in the LNG value-chain with international presence
Revenue grew 32% EBITDA growth 13%
Create and manage world-class LNG infrastructure
Continue excellence in LNG business
- Focus on higher capacity utilization and better operational efficiencies
- Diversify LNG sources
Diversify business
- Wind Farm
- City-gas distribution/ direct marketing
- Air Separation Unit
- Solid cargo port at Dahej
Maintain highest standards of business ethics
Business Strategy
DAHEJ LNG TERMINAL
Located at West Coast, State of Gujarat in the Gulf ofCambay
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 in April., 2014
EPC Award : Storage Tanks Contract & Regas(Regas & Storage Capacity) Contract Awarded
Scheduled Completion byNovember 2016
Expanded Capacity sold to GAIL, GSPC, IOCL & BPCL
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DAHEJ PLANT FACILITY
DAHEJ SECOND JETTY
VAPORISATION FACILITIES
LNG BY ROAD
SATELLITE HUB
SATELLITE LNG HUB & LNG BY ROAD
KOCHI PLANT OVERVIEW
LNG Terminal located in Special Economic Zone with Co-developer status
Capacity 5.0 mmtpa
Tied up 1.44 mmtpa LNG from Exxon Mobil’s Gorgon Project
Time Charter Party for 4th 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 TERMINALSearch eallint304576f8304576f800
18
KOCHI - FACILITIES KOCHI - FACILITIES
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 plant
2. 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 decision Delayed Completed
THIRD TERMINAL AT EAST COAST
Proposed Capacity: 10 mmtpa
Initial Capacity : 5 mmtpa
Location: Gangavaram, Andhra
Pradesh
DFR, FEED and various other pre-
project activities completed along
with obtaining of clearances
Estd. Project cost: 1.2 Billion USD
Gangavaram
LNG terminal to be developed as SPV with GPL as partner
MOEF has accorded Environmental and CRZ Clearance
5 mmtpa onshore terminal proposed to be commissioned in2017
Facilities to include 2 Storage tanks, marine & regasificationfacilities
To commence earlier supplies, FSRU option being examinedthrough which supplies can commence in 2016
Understanding reached for connectivity with East West &Mallavaram-Bhilwara pipelines
GANGAVARAM TERMINALSearch eallint304576f8304576f800
GANGAVARAM
Proposed berth location
Proposed land for plant sitting
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 customer’s premises in regions not serviced bypipelines under the Brand name of
PERFORMANCE GRAPH
Sales/ Service TBTU
125
247
290
322 321
400
440
548524
494
0
100
200
300
400
500
600
176214
255
324
397
447
536
704
824 831
0
100
200
300
400
500
600
700
800
900
31.03.05 31.03.06 31.03.07 31.03.08 31.03.09 31.03.10 31.03.11 31.03.12 31.03.13 31.03.14
Net Worth USD Million
PERFORMANCE GRAPH
Net Worth USD MillionSales/ Service TBTU
-6
39
63
95104
81
124
212 213
119
-50
0
50
100
150
200
250
PAT USD Million
389
767
11021311
1686
2130
2639
4539
5827
6291
0
1000
2000
3000
4000
5000
6000
7000
2004-052005-062006-072007-082008-092009-102010-11 2011-12 2012 -13
2013-14
Turnover USD Million
USD per shareUSD per share
FINANCIAL PARAMETERS
Year EPS (USD) P/E D/E
2006-07 0.08 23.99 1.08
2007-08 0.13 11.15 0.97
2008-09 0.14 11.62 1.15
2009-10 0.11 5.75 1.12
2010-11 0.17 15.19 1.20
2011-12 0.28 9.29 0.93
2012-13 0.31 8.83 0.68
2013-14 0.16 14.75 0.66
0.540.92
1.24
0.94
1.46
0.80
1.64
2.46
3.02
2.22
2.40
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Current
Market Price USD
PERFORMANCE BASED ON EMPLOYEE PARAMETERS
2013-14* 2012-13 2011-12 2010-11
No. of Employees 427 397 309 276
Turnover/ employees (USD Million) 14.73 14.65 14.80 9.76
Profit Before Tax / Employee (USD
Million)
0.27 0.8 1.02 0.67
Employee Remuneration cost* (as %
of Profit)
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 in
31-40 years age)
Dahej : 202 Technical : 295 69% are Technical & 22% professional
Kochi : 131 Office Support : 37 Average years of association of
employees with Company 5 years
* As on 31.03.2014
Moody's Investors
Service
Baa3
(sovereign)
AA+
AA+
2012-1337
2012-13
29
2012-1336
2012-13
109
2012-13
27
PLL International Rating
PLL Domestic Rating & Ranking
Ratings & Ranking:
• Moody International Rating Baa3
• Rated AA+ by Fitch and ICRA rating
Agencies
• 36th rank in ET (2012-13)
• 37th rank Fortune India 500 (2012-13)
• 150th Largest Company & 301th most
Profitable Company in Plimsoll Global
Analysis on Global Crude Oil & Gas
Extraction Industry ranking
• Letter of Appreciation for maintaining
low methane emission footprint at
Dahej facility from United State
Environmental Protection Agency
A JOURNEY TOWARDS SUCCESS …
CSR – PARTNERING WITH COMMUNITY – DAHEJ
Participative community development programmes with State Govt in Luvara & Lakhigam villages
Health & Sanitation
Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage/solar street
lights.
Preventive and Social medicine aids (includes Primary Health Centre & Ambulance).
Education and Employment generation programs
Sponsored laboratory to facilitate science stream education in the nearby school, Dahej.
Inauguration of Petronet LNG Centre for 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.
Participation in Govt. Devp. Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre
Massive mangrove plantation to cover 1000 hectares by 2015-16 in consultation with Gujarat Ecology
Commission/Forest Department.
Constructing of canteen at Government Hospital, Bharuch.
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 of
the 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
Thank You