LNG Global Market. IGU Executive Committee Workshop in Durban, South Africa on 6-7 April 2016

Transcription

1 LNG Global Market IGU Executive Committee Workshop in Durban, South Africa on 6-7 April 2016

2 Disclaimer This presentation and the information herein contained is Gas Natural Fenosa ( GNF ) property. Although GNF has taken all reasonable care to ensure that the information herein is accurate and correct, no representation, warranty or undertaking, express or implied, is given by or on behalf of GNF or any other person as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein or any other material discussed at the presentation. This presentation may include forwardlooking statements that reflect GNF's intentions, beliefs or current expectations, Such statements are made on the basis of assumptions and expectations that GNF currently believes are reasonable, but could prove to be wrong. Any forward-looking statements made by or on behalf of the Company speak only as at the date of this presentation Copyright Gas Natural SDG, S.A. 2

3 3 Gas Natural Fenosa

4 Gas Natural Fenosa The Gas Natural Fenosa Group Presence in more than 30 countries Around 23 M customers in the world employees The largest integrated gas and electricity company in Spain and Latin America 1. Figures 31/12/15 4

5 Gas Natural Fenosa The Gas Natural Fenosa Group EBITDA M 1 A multinational company, leader in the sector of Gas and Electricity through a Balanced business model Total assets M 1 Installed Capacity MW 1 Figures 31/12/2015 5

6 Gas Natural Fenosa GNF position in the gas supply chain Upstream Liquefaction Midstream Shipping Regasification Transport & Distribution Marketing GNF is present in stable markets (Spain) GNF has participation in the liquefaction plant of Damietta (Egypt) and Qalhat (Oman) Diversified and flexible portfolio of supply with 30 bcma contracted from T&T, Nigeria, Egypt, Oman, Qatar, USA, Russia, Algeria and Azerbaijan 7 carriers in operation + 4 carriers under construction Participation in regasification plants: Sagunto and Reganosa (Spain) Ecoeléctrica (Puerto Rico) Access capacity in Montoir (France) and in all regasification terminals in Spain Transport: Maghreb-Europa pipeline Pipeline distribution network: 120,000 km in Spain, Italy, Brazil, Argentina, Colombia, Mexico and Chile LNG sales of 12 bcma over long, medium and short term contracts 6

7 Gas Natural Fenosa GNF in the world 7

8 Gas Natural Fenosa Liquefaction and Supply (Midstream) The company has a LNG and natural gas supply portfolio of around 30 bcm from reliable and diversified sources of supply GN: Norway LNG: Yamal 3.2 bcma LNG: Sabine Pass T2 5 bcma GN: Azerbaijan LNG: Corpus Christi T2 2.1 bcma LNG: Trinidad & Tobago GN Algeria LNG: Qatar LNG More than 22 bcma from different sources Large flexibility to supply different markets worldwide LNG: Nigeria Natural Gas (GN) GN contracts from Norway, Algeria and Azerbaijan Dedicated to markets connected to the pipeline 8

9 Gas Natural Fenosa Shipping capacity A current portfolio of 7 vessels Gaslog Saratoga m3 Seishu Maru m3 Cadiz Knutsen m 3 Catalunya Spirit Castillo de Villalba Ibérica Knutsen Ribera del Duero Knutsen m m m m 3º... plus 4 vessels of m3 chartered to attend Sabine Pass GNF s Contract 9

10 Gas Natural Fenosa GNF s regasification terminals and markets LNG globally marketed through medium/long term contracts Puerto Rico: Participation in Regasification Terminal France (Montoir): Regasification Capacity Spain: - Participation in 2 Regas. Terminals - Regas capcity in all regas terminals Large experience in the downstream markets. GNF is one of the main players of gas sales worldwide. Its active management of long term sale contracts and spot contracts ensures optimized and secured supplies Current LNG route Future LNG route LNG Delivery Point LNG Supply Source 10

11 LNG Markets

12 LNG Markets LNG Value Chain Liquefaction Plant LNG Carrier Final Customers Gas Distribution Unloading and storage terminal Transport Truck loading terminal Regas terminal (on-shore/ FSRU) Tank truck LNG Satellites plant Pipeline Small Scale LNG application Power Plant Households Industry

13 LNG Markets World Primary Energy World Primary Energy Electricity Generation Mix 21,7% % % 90% 80% 70% 60% 50% 40% 30% 20% Crudo Carbón Gas natural Renovables Nuclear Hidráulica 10% 0% The natural gas is the sole fossil fuel with growth projections in the upcoming decades Source: BP, 2014 Oil (+other liquids) includes biofuels, gas-to-liquids (GTL) y coal-to-liquids (CTL). 13

14 LNG Markets World gas natural demand Expected growth in the consumption of natural gas of 624 bcm from 2013 to ,5% North America ,9% Europe & Eurasia ,7% Pacific Asia ,1% Middle East ,3% Unit: bcma Latam ,5% Africa Source: GNF s analysis based on BP Statistical Review of world energy 2015 and BP Energy Outlook 2035 (2015)

15 LNG Markets Evolution of the consumption of LNG and natural gas in the world Evolution of total demand of natural gas % LNG mix of natural gas demand Total demand of natural gas 84% 16% Bcm % 10% % GN of total gas demand % LNG of total gas demand Fuente: Woodmackenzie The increased consumption of LNG will lead to a more interconnected and globalized gas market 15

16 LNG Markets LNG Supply Facilities Snohvit Yamal LNG Kenai Cameron Sabine Pass Trains 1-5 Freeport Trains 1-3 Corpus Christi On-Stream Under construction La Creciente FLNG Perú LNG Qatargas-1 Qatargas-2 Arzew Qatargas-3 Bethioua Qatargas-4 Skikda Rasgas I Rasgas II RL - 3 Marsa El Brega Atlantic LNG 1 Damietta ADGAS Atlantic LNG 2 &3 ELNG 1 OLNG Atlantic LNG 4 ELNG 2 Qalhat Arun Yemen LNG EG LNG NLNG Base Angola LNG MLNG NLNG Expansion MLNG Dua NLNG Plus MLNG Tiga NLNG 6 MLNG Train 9 Petronas FLNG 1 Cove Point Pluto North West Shelf Gorgon Wheatstone Prelude FLNG Brunei Bontang Sakhalin 2 Petronas FLNG 2 DS LNG Tangguh PNG LNG Ichthys Darwin APLNG QLNG GLNG Source: GNF s analysis based on Woodmackenzie reports. 16

17 LNG Markets LNG tankers activity 1 October :00h Source: Reuters 17

18 LNG Markets Current situation Liquefaction Capacity vs LNG Demand LNG price evolution Operational Probable Development Speculative Source: Compilated based on Woodmackenzie data. Under Construction Possible LNG demand Source: OIES with Platts, EIA, Argus CME Price conditions for consumers would be very favourable in the coming years thanks to a reduced demand grow and the LNG avalaibility 18

19 LNG Markets Fuel Competition Primary consumption energy in selected LNG importing countries Source: IEA Outlook 2014 Natural Gas in Asia grows less than other types of energy Source: BP Statistical Review of World Energy

20 LNG Markets LNG / Natural gas prospects Long term factors New LNG Importing countries as Egypt, Pakistan, Israel, Jordan and private Chinese buyers New supplies and discoveries Alternative uses of Natural Gas/LNG as transportation New technology, as FNLG, can lower the upstream costs of LNG LNG contribution to the Security of Supply Short term factors Current level of prices can deter the investment of new supplies leading to a boom & bust cycle and a new tight period 20

21 Security of Supply Fukushima example Global LNG Imports: Q vs Q Japan fuel consumption for electricity generation mmtons Global LNG Imports: Q vs. Q Q Asia Europe North AmericaLatin America Middle East Q Source: Waterborne LNG, US Department of Energy, PFC Energy Source: The Fukushima nuclear accident and its effect on global energy security, Energy Policy 59, 2013 LNG Markets helped Japan to cope with the nuclear collapse after the 2011 tsunami. Many cargoes were rerouted to Japan responding to the high prices

22 GNF to supply LNG in Africa 22

23 GNF in its LNG supplier role GNF s portfolio has a wide spread of alternatives that can be combined to fit each singular client Quality Fleet Volume Indexation Term Flexibility Robust portfolio providing a wide range of quality alternatives to fulfill the requirements of each end user Extensive shipping fleet in terms of number of vessels and size Leveraging its ability to aggregate demand across different markets, GNF can cater to end users consumption profile Portfolio player that can provide the indexation that is best suited for each individual client (HH, Brent, Gas Oil, Fuel Oil) Active in both trading and marketing activities, GNF is able to tailor contracts for spot, mid term, and long term purchases Its broad portfolio of supply contracts and logistical capabilities allow GNF to provide flexibility to end users GNF is committed to providing its customers with the most effective solution possible 23

24 GNF and its suppliers role Advantages provided by GNF Flexibility Competitiveness Security of Supply Start of deliveries in connection with the development of infrastructures Ramp up: Increase delivered quantities Price indexation Supply from Atlantic Basin sources The best positioning in the Atlantic: delivery optimization Diversified portfolio Large experience: Spain, Portugal, Puerto Rico and Argentina. One of the largest LNG fleet in the world 24

25 Small Scale LNG applications Distribution by trucks / LNG satellite plants LNG can be transported by trucks to Satellite LNG Plants or industrial clients 25

26 Small Scale LNG applications Advantages They allow to transport the gas natural to anywhere in the country without investing in pipeline network They do not require large investments and it has very competitive operating/maintenance costs Creates natural gas demand before the development of large gas infrastructure in the region Technologies tested and proved in mature markets (Spain) They are used, and they are still implemented by GNF in the gasification model in Spain 26

27 Small Scale LNG applications Advantages GNF has a large experience in the construction and operation of LNG satellite plants This model has been exported to other countries in Europe: France, Italy, Germany, Belgium, Holland Its development and implementation allows an important growth vector in different sectors With applications in all sectors of economic activity: industrial / agriculture / services / residential / vehicle / power generation, regardless of their location Main mechanism for the development of generation projects (electricity for thermal energy / industrial cooling) 27

28 Security of Supply Three key axes Portfolio of supply Fleet Infrastructure & Markets Geographical diversification with different counterparts, duration, volume, qualities and flexibility Technical capability with different sizes of carriers that allows GNF to deliver LNG in the most favorable conditions to all the markets Position in the final markets with access capacity in the most important entry infrastructures GNF has a secured LNG supply in the long term through: A diversified sources and supply, a flexible fleet portfolio and a selected positioning in final markets 28

29 Thank you