G & P Business Trends. Luciano Sgubini Chief Operating Officer Gas & Power Division

Transcription

1 G & P Business Trends Luciano Sgubini Chief Operating Officer Gas & Power Division January 2003

2 Gas & Power Strategy Italy Abroad! Generating profit in a competitive and regulated gas & power market! Building a profitable international position! Developing LNG business Assuring a long term profitable growth 2

3 Italy: enhance marketing respecting ceilings bcm TOTAL DEMAND % inlet to market* CAP Eni share 67% ~60% Eni SALES WHOLESALERS % final consumption* FINAL USERS CAP Eni share 50% ~40% 2002E 2006 Ceilings respected * According to decree 3

4 Italy: expansion in power generation Organic growth leveraging on:! Eni s sites! High efficiency! Cogeneration! Attractive returns PLAN ON TRACK 7 sites ~2 To be approved 3 TOTAL CAPACITY ~ 6 GW 3,8 Under construction 4 0,7 In place brown fields

5 Italy: Italgas deal boosts Gas sale arm Market segmentation Power sale arm G & P Division Italgas Più Wholesalers Power sector Industry Commercial Residential EniPower EniPower Trading ITALGAS DEAL Integration 5

6 commercial and marketing integration Sale arm Market segmentation G & P Division Gas & Electricity Wholesale & large customers Residential Accounting unbundled and integrated organization! Exploiting synergies! Extending gas value chain! Persuing market opportunities 6

7 Italy: optimize asset base in regulated business TRANSMISSION (Snam Rete Gas) DISTRIBUTION (Italgas) Improving performance Improving performances exploiting industrial opportunities for integration ITALGAS DEAL reducing presence according to market dynamics 7

8 Europe: building a profitable international presence Germany Iberian Peninsula Blue Stream Turkey Green Stream 8

9 Expanding in Growing Market: GVS and Union Fenosa Gas deals Eni Target IBERIA GERMANY From North TENP From East! Partnership with Galp and Union Fenosa Gas bcm Galp 7.4 UFG Sines 2006 " Through GVS, develop sales in Baden- Württemberg and close Länder " Integrate GVS gas supply to support growth Huelva Reganosa EECG Cartagena Sagunto 9

10 Develop Supply Leveraging on Pipeline Projects: Russian and Libyan contracted/equity gas Eni-Gazprom JV Eni Target GREEN STREAM BLUE STREAM Compression Station 180 MW Lines: 2x24 Length: 2x358 km ANKARA SAMSUN Botas Gazprom Black Sea BEREGOVAYA! Start up ! Capacity: 8 bcm/y! Capex: 825 M$ bcm ! Start up delivered! Supply Turkish market with 16 bcm/y of gas from Russia, 8 of which are Eni s Equity and contracted gas from Libya MELLITAH GELA Line: 32 Length: 540 km Compression Station 132 MW LIBYA Contracted gas to Italian market 10

11 Europe: pipeline transmission business DIFFERENT WAYS TO DEVELOP A PROFITABLE BUSINESS PROJECTS Integrated business along the gas chain INTEGRATION Domestic network and upstream integration Libya Italy Green Stream Supply developing markets PARTNERSHIP Dedicated transit pipeline Russia-Turkey Blue Stream Stand alone business REPOSITIONING Service transit pipeline Tunisia Transit Expansion TTPC Austria Transit Expansion TAG 11

12 LNG Prospects for Long Term and Profitable Growth UNION FENOSA DEAL Trading bcm 12 5 Trinidad Reganosa Sines Sagunto Algeria Panigaglia Damietta Oman 2002 Bontang 2006 Bonny 14 8 Operation Project Contracted LNG TROUGH AN INTEGRATED Eni POLICY 12

13 Gas & Power Capital Expenditures Bln 4.7 POWER TRANSMISSION % 80 ITALY DISTRIBUTION ABROAD Capex INVESTMENT DRIVEN BY POWER AND TRANSMISSION 13

14 Earning Growth: managing different profit trends to sustain returns GAS MARKETING GAS TRANSMISSION AND DISTRIBUTION POWER GENERATION ITALY Focus on customer Efficiency and rationalization Capacity growth Slow decline Slight increase Sharp increase ABROAD Partnership and acquisitions Reorganization and implementation NO PRESENCE Strong growth High development Earnings Trend 14