LNG INFRASTRUCTURE IN INDIA - Petronet LNG sGas Scenario, Infrastructure Role of LNG in India About...

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CORPORATE PROFILE PETRONET LNG LIMITED May, 2014

Transcript of LNG INFRASTRUCTURE IN INDIA - Petronet LNG sGas Scenario, Infrastructure Role of LNG in India About...

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