Natural Gas Op (Energy Council)

38
GAS Anaco, June 2000 The Energy Council Natural Gas Opportunities V E N E Z U E L GAS

Transcript of Natural Gas Op (Energy Council)

Page 1: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Natural Gas Opportunities

V E N E Z U E L A

GAS

Page 2: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

• Venezuela´s Natural Gas

Industry

• Master Plan

• Business Portfolio

Content

Page 3: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Worldwide Natural Gas Proven Reserves

110

110

128

146

164

186

205

250

742

1977

Irak

Nigeria

Algeria

USA

Saudi Arabia

U.A.E

Qatar

Iran

Russia

VENEZUELA

(TCF)

Page 4: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Latin America Natural Gas Proven Reserves

3.7

4.3

6.9

8.0

18.3

24.1

63.5

14

0 15 30 45 60 75 90 105 120 135 150

ARGENTINA

BOLIVIA

ECUADOR

MEXICO

BRASIL

COLOMBIA

TRINIDAD & TOBAGO

VENEZUELA 146

Non Associated Gas (TCF)

Page 5: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Gas Resources

(TCF)

Associated

Non-associated

Proved Probable Possible

132 32 32

14 7 11

Total 146 39 43

Page 6: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Gas Transmission SystemsParaguana

44Maracaibo

Existing Gaslines

Jose Pto. La Cruz

11

Caracas

Barquisimeto

Altagracia

Valencia

33

Pto. Ordaz

22Anaco

Page 7: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Production / Consumption

Total = 6 BCFD

Oil Industry4.2 BCFD

32

12

10

46

Residential

CrudeSecondary

Recovery

Fuel

NGLTransf.

Others

30%70 % DomesticMarket

Oil Industry

Domestic Market1.8 BCFD

Power Gen.

Petrochemical

Steel/Alum

Cement

Others

(%) (%)

32

21

21

65

15

February 2000

Page 8: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Venezuelan Market Forecast (1999 - 2009)

0

400

800

1.200

1.600

2.000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

BO

ED

x 1

03

(42 %)

(55 %)

(26 %) (17 %)

(32 %) (28 %)Hydroelectric power

Liquids

Natural Gas1130

1800Energy Matrix

1998 2000 2002 2004 2006 2009

Natural Gas

0

1

2

3

4

5

6

POWER GENERATION

BC

FD

4.2

1.8

PETROCHEMICAL

STEEL / ALUMINUM

MANUFACTURE

Page 9: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

NGL Plants

Existing Infrastructure

Jose

San Joaquín

Sta BárbaraJusepín

UléTJs I/ II

Bajo Grande

Lama

Capacity: 232 MBD

Page 10: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Legal Framework

Private participation in non associated gas E&P and gas downstream activities

20% royalty Creation of a National Gas Regulatory Board

Income tax rate reduced from 67% to 34% Tax credit on new investments (10%)

Gas Price = Commodity Price

Transportation Tariff

Distribution Tariff+ +

.... Reasonable profitability

Income Tax Law

Price

Gas Law

Page 11: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Production FieldProduction Field

HubHub

ExplorationExplorationExploitationExploitation

Non-Non-associated associated Natural GasNatural Gas

Processing•Methane GasMethane Gas•NGL’sNGL’s

GatheringGathering

TreatmentTreatmentCompressionCompression

TreatmentTreatmentCompressionCompression

Not included in Not included in New Gas Law New Gas Law ScopeScope

ExplorationExplorationExploitationExploitation

AssociatedAssociated Natural GasNatural Gas

TransmissionTransmission

DistributionDistribution

DistributionDistribution

IndustrializationIndustrialization

ExportExport

End usersEnd users

New Gas Law : Breaking a monopoly

Page 12: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Vast resources Strong support from

local suppliers Long history of oil and

gas production Convenient geographic

location

Venezuelan Strengths

Excellent opportunity to support major gas developments

Excellent opportunity to support major gas developments

Page 13: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Guidelines from Stakeholder• Develop non-associated gas• Develop gas markets for the

industrialization of the country

• Maximize domestic value added

• Foster private capital participation

• Improve strategic position in the international market

Business Area

Gas Development Master Plan

Page 14: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Guidelines from Stakeholder Business Area Gas Offer• Develop non-associated gas

• Develop gas markets for the industrialization of the country

• Maximize domestic value added

• Foster private capital participation

• Improve strategic position in the international market

Gas Development Master Plan

Page 15: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

DemandDemand

SupplySupply

Domestic marketOil industryExport

PDVSA own effort(Associated Gas)

Time

Opportunity in potential demand

Need to add flexibility to the supply system

E&P Licenses for Non Associated Gas

E&P Strategy

Volume

Page 16: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Guidelines Business Area

Gas Supply NGL Transportation Distribution

• Develop non-associated gas• Develop gas markets for the

industrialization of the country

• Maximize domestic value added

• Foster private capital participation

• Improve strategic position in the international market

Gas Development Master Plan

Page 17: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Guidelines Business Area• Develop non-associated

gas• Develop gas markets for

the industrialization of the country

• Maximize domestic value added

• Foster private capital participation

• Improve strategic position in the international market

Gas Supply NGL Transportation Distribution

Gas Development Master Plan

Page 18: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Guidelines Business Area• Develop non-associated gas• Develop gas markets for the

industrialization of the country

• Maximize domestic value added

• Foster private capital participation

• Improve strategic position in the international market

Gas Supply NGL Transportation Distribution Exports

Gas Development Master Plan

Page 19: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Natural Gas Strategic Guidelines

Methane GasTransfer transmission and distribution systems

to the private sector, maintaining selective participation of PDVSA

NGLRetain existing processing plants. Promote

alliances with private sector for future developments

Maintain own production of associated natural gas and development non associated gas with the participation of the private sector

Gas Offer

New Businesses

Promote gas export through strategic associations (LNG - GTL - Gaslines)

Page 20: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

E&P Opportunities

ONSHORE11 areasBidding processDefinition of Terms and Conditions in ProgressFormal public announcement will be done prior to the availability of the Data Packages

OFFSHOREIntegrated ProjectsLarge Size ProjectsExports and Domestic Markets-Industrialization

ANACOPDVSA Own Effort

Coal Bed Methane

Caracas

Coro

Barrancas

Maturín

Maracaibo

AnacoCentral Foothill

North Ambrosio

Yucal-Placer

Northern Paria

Delta

Page 21: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

SAN CARLOS

GUANARE

BARINAS

GUANARE

BMTOMCBO

ANACO

YUCAL PLACER 2 AREAS, 900 Km2 each

BARRANCAS 1 AREA, 1970 KM2

AMBROSIO 1 AREA, 527 Km2

GUARICO-COJEDES7 AREAS, 1000 Km2 each

$/MPC

0.50

1.051.45

CARACAS

E&P Opportunities -11 Areas

Page 22: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Gas Transmission OpportunitiesParaguana

44Maracaibo

Existing Gaslines

Jose Pto. La Cruz

11

Caracas

Barquisimeto

Altagracia

Valencia

33

Pto. Ordaz

22Anaco

Page 23: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Paraguana

44Maracaibo

Existing GaslinesExpansions

Jose Pto. La Cruz

11

Caracas

Barquisimeto

Altagracia

Valencia

33

Pto. Ordaz

22Anaco

Gas Transmission Opportunities

Page 24: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Jose Pto. La Cruz

11

Caracas

Barquisimeto

Altagracia

Valencia

33

Pto. Ordaz

22

Existing Gaslines

Paraguana

44Maracaibo

Anaco

Creation of independent companies for each transmission system

Creation of independent companies for each transmission system

Gas Transmission Opportunities

Page 25: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

77 88

Future Gaslines

66Margarita55

Jose Pto. La Cruz

11

Caracas

Barquisimeto

Altagracia

Valencia

33

Pto. Ordaz

22

Paraguana

44Maracaibo

Anaco

Existing Gaslines

Biding process for new transmission systems

Biding process for new transmission systems

Gas Transmission Opportunities

Page 26: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Pto. OrdazPto. Ordaz

CaracasCaracas

CardónCardón

Gas distribution potential

Industrial distribution

Residential distribution

Potential GrowthAnacoAnaco

Pto. La CruzPto. La Cruz

ValenciaValencia

BarquisimetoBarquisimeto

MaracaiboMaracaibo

460.000 > 1.000.000

Potential residential consumers

Page 27: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Gas Distribution Opportunities

Economic Feasibility

Ample Markets

Economies of scale

Conditions:

Regional Distribution

• Private Sector• Distribution Tariff• Plan to increase number of

users• Recognized Operators• Domestic Capital Usage

Bidding conditions:

Page 28: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

NGL Opportunities

Existing Infrastructure

Jose

San Joaquín

Sta BárbaraJusepín

UléTJs I/ II

Bajo Grande

Lama

Keep property of existing Plants.Promote alliances with third parties for future projects

Keep property of existing Plants.Promote alliances with third parties for future projects

New InfrastructureCapacity: 232 MBDProjected: 315 MBD

Capacity: 232 MBDProjected: 315 MBD

Page 29: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

LNG Opportunities

Jose and Paria best locations basedon availability of resources

Jose and Paria best locations basedon availability of resources

Paria

Northern Paria

Delta Platform

Jose

Page 30: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Jose

Jose Project

Supply contract: 350 MMSCFD

Production: 2 MMT/Y

Markets: Atlantic Basin

Start Up: 2003

Supply contract: 350 MMSCFD

Production: 2 MMT/Y

Markets: Atlantic Basin

Start Up: 2003

Page 31: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Venezuela LNG Project

640 MMSCFD 4 MMT/Y Markets: East Coast

USA, Caribbean Start Up: 2005

640 MMSCFD 4 MMT/Y Markets: East Coast

USA, Caribbean Start Up: 2005

Paria

Northern Paria

Delta Platform

PDVSA

SHELL

EXXON MOBIL

MITSUBISHI

InitialSponsors

Largest energy producer in Latin America & vast gas reserves

The most experienced LNG players worldwide

Page 32: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Business Portfolio

Upstream• Exploration / Production-Coal Bed• Gathering

Business Opportunities

Midstream• New Transmission Systems• Existing Trans. Systems Expansion

Downstream• Distribution• Processing• Industrialization (GTL-Petrochem)• Power Generation• Exports (LNG-GTL-Pipelines)

Page 33: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Anaco Gas Development

Yucal - Placer

Northern Guarico / Cojedes

20002000 20012001 20022002 20032003

Northern Ambrosio

Barrancas

20

04

20

04

20

05

20

05

Projects TimetableGas SupplyGas Supply

Bid Award Bidding process Commercial production

E&P Gas Licenses

Delta Platform

Conceptualization

Studies

Coal Bed Methane Development

Investigation /Data gathering

PreliminaryStudy

Field Development

Study

Page 34: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Anaco - Barquisimeto

20002000 20012001 20022002 20032003

Anaco - Pto. Ordaz

Ule - Amuay

Barbacoas - Margarita

Valencia-Acarigua-Bnas.

East-West Interconnect.

Colombia Interconnection

Anaco - Jose

20

04

20

04

20

05

20

05

BidAward

Conceptualization

Projects TimetableTransportationTransportation

EXISTING SYSTEMS

NEW SYSTEMS

BiddingPreparation

BiddingProcess

Bidding PackageAvailable

Page 35: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

20002000 20012001 20022002 20032003

Other Regions

20

04

20

04

20

05

20

05

Projects Timetable

DistributionDistribution

Pilot Area

20002000 20012001 20022002 20032003

Northern Paria Develop.

20

04

20

04

20

05

20

05

Liquefaction /Liquefaction /TransformationTransformation

Jose LNG

Gas To Liquid

ConditionsAgreement

ConceptualizationBiddingPreparation

BiddingProcess

Bidding PackageAvailable

Transform. / Industrializ.

Liquefaction

Project Development

Page 36: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

20002000 20012001 20022002 20032003

20

04

20

04

20

05

20

05

Anaco - Jose

Barbacoas - Margarita

BiddingAward

Conceptualization

Projects TimetableProjectsProjects

EXISTING TRANSP. SYSTEMS

BiddingPreparation

Bidding Process

Bidding PackageAvailable

Colombia Interconnection

Ule - Amuay

Anaco - Barquisimeto

Valencia-Acarigua-Barinas East-West Interconnection

Anaco - Pto. Ordaz

DISTRIBUTION (Pilot Area) DISTRIBUTION (Other regions)

GTL

LNG: Jose LNG: Northern Paria Development

NEW TRANSP. SYSTEMS

Project Development

Page 37: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

Master Plan Economic Data

Investment: 6 - 10 MMM$

Gas Production: 1,100-3,000 MM$

Transportation & Distribution: 1,600 - 3,000 MM$

Processing: 1,000 MM$

Liquefied Natural Gas (LNG): 2,600 MM$

Page 38: Natural Gas Op (Energy Council)

GAS

Anaco, June 2000The Energy Council

CARACAS

ProducersTransportersDistributorsCostumers

Hubs

ANACO

MARACAIBO

LNG / GTL

Exports

NGL

LNG toBrazil

LNG to Caribbean & USA LNG to Europe

Gas Business Vision

PTO. ORDAZ