& Gas Scenario Corporate Office, New Delhi 1 World & - PowerPoint PPT Presentation

Gas Business & Gas Scenario Corporate Office, New Delhi 1

World & India Energy Overview

World Energy Scenario: Golden Age for Gas Share in Primary Energy Mix : 1990-2014: 2014 -2030 Outlook : • Gas Share : Up 2% • Gas Share : Up 2% • Oil share: Down 6% • Oil share: Down 4% 1990 2014 2030 1770 MTOE 3066 MTOE 4211 MMT 3149 MMT - BP World Energy Outlook - June 2015 By 2040, Oil and Coal collectively relinquish 9% of the global energy mix, with Renewables growing by 5 % and Gas and Nuclear each growing by 2%. - IEA WEO 2015 Report - Nov. 2015

BRICS Nations – A Comparison Per Capita Natural Gas Consumption (Cubic Meter) South Year Brazil Russia India China Africa 2004 102 2706 30 32 46 2006 109 2912 34 44 73 2008 130 2931 36 63 77 2010 52 83 77 137 2899 2012 48 112 76 159 2907 2014 40 136 76 196 2845 92 MMTPA : Additional consumption required to reach China’s per capita Consumption Source: BP Statistics 2015 & World Bank Population Data 4

Indian Energy Scenario: Share in Primary Energy Mix : 1990 2014 1990-2014: 46 MTOE • Gas Share : Up 1% 11 MTOE • Oil share: Down 4% 58 MMT 191 MMT Mtoe 2037 1990 2014 2037 Oil 58 191 467 Gas 11 46 167 Source : BP Statistical Review of World Energy June 2015 & IESS 2047 – IEP Pathway

Indian Natural Gas Market

Natural Gas in Natural Gas in India India Values are in MMT 53.0 48.3 47.7 Consumption 48.0 45.0 Production 43.0 39.9 39.1 38.7 38.5 38.0 35.1 31.6 30.7 33.0 30.7 29.9 28.4 27.1 28.0 25.6 24.2 24.1 23.2 22.9 22.5 22.3 22.2 23.0 18.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: BP Statistics – June 2015 • Difference is being met through LNG Imports • Gas Production downtrend is mainly due to RIL KG D6  LNG couldn’t balance KGD6 fall due to high price and infrastructure constraints • Availability & Infrastructure are the major constraints in India’s growth story. 7

Sector Wise Natural G Gas C Consumption: 2014-15 15 (H1) (H1) RLNG Others Domestic Gas 9% Fertilisers 34% Refineries LPG 25% extraction 4% Petrochemical Power s LPG extraction Fertilisers 8% 4% Power 0% CGD Others 36% Steel 34% 17% 8% 3% Sector Domestic RLNG Total MMSCMD MMSCMD % Share Fertilisers 26.77 15.05 41.82 35 Refineries LPG extraction 2.68 0.16 2.84 2 CGD 2% 12% Power 25.37 3.43 28.8 24 Petrochemi CGD 9.07 7.45 16.52 14 cals Steel Steel 1.16 1.46 2.62 2 3% 1% Petrochemicals 1.93 1.79 3.72 3 Refineries 1.52 11.28 12.8 11 Others 6.29 3.93 10.22 9 74.79 44.55 119.34 100 Source : MoPNG Annual Report 2014-15 8 Major portion of NG is consumed by Power & Fertilizer Sectors, which are also priority sectors.

NATURAL NATURAL GAS MARKET GAS MARKET : IMPERATIVES IMPERATIVES  Availability  Domestic  Imported - RLNG  Spot/ Short/ Medium/ Long Term  Gas Infrastructure  Gas Pipelines  LNG Terminals  Affordability

Gas Demand – Supply Overview 10

Sector Wise Gas Demand Projectio ions s – India India MMSCMD 700 599 600 33 543 Petchem 491 29 73 500 26 73 426 63 Refinery 68 51 26 400 357 42 118 67 26 CGD 106 33 60 99 300 24 93 111 Industry 107 76 104 200 71 Fertilizer 57 201 100 177 152 136 Power 114 0 FY16 FY18 FY20 FY22 FY25 Source : CRISIL Report for IndianOIl - March 2014

Gas Demand Projections Vs Expected Domestic Gas & Import Capacity MMSCMD 700 599 600 543 491 500 426 400 357 30 30 300 177 177 167 200 132 104 100 158 149 138 132 126 0 FY16 FY18 FY20 FY22 FY25 Pipeline Imports Import Capacity Gas Supply Gas Demand Source : CRISIL Report for IndianOil – March 2014

Natural Gas Infrastructure in India

Gas Pipeline Density Km / 100 Sq Km. 6.00 5.57 5.00 Transmission Network Km per 100 Sq Km 4.00 3.00 2.00 1.39 1.00 0.51 0.48 0.00 U.S. Pakistan China India Year : 2014. Data excludes Distribution Network

Natural Gas Pipelines – An Emerging Grid SRINAGAR jAMMU NANGAL BHATINDA DELHI BAREILLY GURGAUN AURAIYA LUCKNOW MATHANIA AGRA DISPUR JAGDISHPUR DAHEJ BARMER KANPUR PATNA GWALIOR 15 mmtpa BHILWARA PHOOLPUR KOTA JHANSI GAYA AGARTALA VIJAYPUR UJJAIN MEHSANA BOKARO RAJKOT Transmission Pipelines BHOPAL AHMEDABAD Existing – GAIL & GSPL KOLKATA BHARUCH CUTTACK GAIL’s Planned Pipeline BARODA RAIPUR JALGAON HAZIRA SURAT RIL’s East West Pipeline 5 mmtpa PARADIP NAGPUR Pipelines awarded by PNGRB MUMBAI BHUBANESHWAR PUNE Bidding stage SRIKAKULAM RAJAMUNDRY EOI stage SOLAPUR DABHOL KAKINADA HYDERABAD KOLHAPUR 5 mmtpa (MALLAVARAM) LNG Terminal GOA NELLORE Existing BANGLORE HASAN CHENNAI Upcoming TIRUCHCHIRAPALLI KANJIKKOD COIMBTORE KOCHI TUTICORIN 5 mmtpa INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET

Indian LNG Terminals (Existing & Proposed) Terminal 2016 2020 2030 Operational Under Construction Dahej 10.0 15.0 15.0 Proposed Hazira 5.0 5.0 10.0 Under Planning Dabhol 2.0 5.0 5.0 Kochi 5.0 5.0 5.0 Jafrabad Mundra 5.0 7.5 Mundra Ennore 5.0 10.0 Dahej Jafrabad 5.0 10.0 Hazira Kakinada 6.5 6.5 Dabhol Dhamra Dhamra 5.0 Dighi Dighi 5.0 Kakinada Gangavaram 5.0 Gangavaram Mangalore Mangalore 5.0 Ennore Kochi 22 51.5 89 in MMTPA 16

Gas Pricing & Affordability

GAS PRICING  Domestic Gas  Notified by GoI., Revised every 6 Months.  Linked to weighted average of Global prices – Henry Hub (HH), Alberta Hub (Canada), NBP UK & Russia Gas Price.  Imported LNG  Market determined  Based on type of Contract  Long Term / Short Term / Spot Short Term/ Spot Price : DES 7 to 18 $/MMBTU Long Term (Crude linked): DES 7 to 15$/MMBTU (Crude 50 to 100 $/bbl) Long Term (Henry Hub linked ): DES 9 to 15 $/MMBTU (HH 3 to 8 $/mmbtu) Hybrid of Crude and Henry Hub Contracts available 18

India LNG P Prices: $/MMBTU Source: Spot & Short Term Prices are based on unweighted average of IndianOil Contracts

Historic Historical al Prices Prices $/MMBTU $/BBL Source: WoodMac LNG Tool and BP Statistics 20

Tamil Nadu

Tamil Nadu  One of the biggest and fastest growing state 2005 2010 2015(F) 2020(F) 2030(F) Rank in India by GDP 3 3 2 2 3 GDP Growth YoY (real) 14.2% 13.6% 9.4% 8.2% 7.3% Rank in India by 2 3 2 1 2 Growth (Big States) GDP Per capita (Mn$) 1007 1538 2101 3153 6103 Rank in India by GDP 7 4 4 3 2 per Capita (Big States) Rank in India by 7 7 7 8 9 Population  Petroleum products consumption – 12.2 MMT (FY14)  Natural Gas consumption – 3 MMSCMD (~0.8 MMT) Source : Wood Mac & MOPNG Statistics 2013-2014

Oil & Gas Consumption – Top 3 GDP states In ‘000 Tonnes State/UT Naphtha LPG Petrol/MS HSD LDO FO Gas Tamil Nadu 488 1583 1696 6195 5 729 800 Gujarat 5328 766 1205 4319 12 487 12100 Maharashtra 270 2164 2272 7347 92 964 5661 All India 10591 15925 17128 68287 386 5091 35300  Infrastructure is key for Gas Demand  Gujarat currently has two LNG Terminals  Maharashtra has one LNG Terminal Source : MOPNG Statistics 2013-2014

Demand – Supply MMSCMD Year 2018-19 2023-24 2028-29 2032-33 Industries 13.6 21.2 24.3 24.5 CGD 0.6 5.7 8.9 11.5 Total Demand 14.2 26.9 33.2 36.0 Supply 3.0 3.0 3.0 3.0 Deficit to be 11.2 23.9 30.2 33 met by LNG Deficit (MMT) 3.1 6.6 8.4 9.2 Source : Mecon Market Study for IndianOil,. In areas along the proposed Pipeline. 24

Gas Grid – Tamil Nadu MANGALORE PLL LNG Terminal IndianOil LNG Terminal SALEM IndianOil GAIL KOCHI

Ennore LNG Terminal Project Project LNG Import, Storage and Regasification Terminal Location Inside Kamarajar Port (formerly Ennore Port), Tamil Nadu. Capacity 5 MMTPA (with provision for expansion up to 10 MMTPA) Major Components: LNG Storage Tanks 2 Tanks, each of gross capacity 1,80,000 Cubic Meter Marine Jetty To handle LNG ships of sizes 65,000 Cubic Meter to 2,66,000 Cubic Meter. Pipeline Trestle Approx. 2.5 km from Marine Jetty to proposed Terminal. Re-gasification Shell & Tube type vaporizers, LNG pumps, BOG Facilities compressors, Re-condenser, Metering & Gas send-out system, etc. Utilities Captive Power Plant, Nitrogen Plant, Instrument & Plant Air System, Fire-fighting Facilities, etc. Safety Systems Automatic Shutdown System in case of emergency, Fire Spill & Gas Detection, Alarm System, etc. 26

Ennore - Tuticorin Pipeline  On 10.12.2015 PNGRB has issued LOA for Ennore-Tuticorin Pipeline  Length of the Trunk Pipeline is about 1170 Km. Mainline sections are as follows:  Ennore-Thiruvallur-Puducherry-Nagapattinum  Thiruvallur-Bangalore  Nagapattinum-Ramnathapuram-Tuticorin  Nagapattinum-Trichy-Madurai  Bid to award RoU survey have been received and likely to be awarded in December 2015  Connectivity to anchor customers will be provided based on the requirement and entering into agreement. Space to be provided inside the premises for the gas supply station  Pipeline Tariff is starting at Rs 6.40 /mmbtu

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