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PETRONET LNG LIMITED PETRONET LNG LIMITED 2011 A CORPORATE PROFILE
PETRONET LNG LIMITED
PETRONET LNG LIMITED2011
A CORPORATE PROFILE
OVERVIEWOVERVIEW
Global & India’s Primary Energy ConsumptionScenario
India’s Gas Scenario, Infrastructure
Pricing of Gas
Role of LNG in IndiaRole of LNG in India
About Petronet’s
Dahej & Kochi Terminals
New Initiatives
Performance
PRIMARY ENERGY PER CAPITA CONSUMPTIONPRIMARY ENERGY PER CAPITA CONSUMPTION
Source : BP Statistical Review June 2011
PRIMARY ENERGY CONSUMPTION (MTOE)PRIMARY ENERGY CONSUMPTION (MTOE) -- WORLDWORLD
Fuel 2005 % 2010 %
Oil 3837 36 4028 34
Gas 2475 24 2858 24
Coal 2930 28 3556 30
36%
24%
28%
6%6%
Oil
Gas
coal
Nuclear
Hydro
Renewables
Year 2005
Source : BP Statistical Review-June 2011
Coal 2930 28 3556 30
Nuclear 627 6 626 5
Hydro 669 6 776 6
Renewables - - 159 1
Total 10537 100 12002 100
24%
34%
24%
30%
5%6%
1%
Oil
Gas
coal
Nuclear
Hydro
Renewables
Year 2010
PRIMARY ENERGY CONSUMPTION (MTOE)PRIMARY ENERGY CONSUMPTION (MTOE) -- INDIAINDIA
Fuel 2005 % 2010 %
Oil 116 30 156 29
Gas 33 8 56 11
Coal 213 56 278 53
Year 2005
30%
8%56%
1%
5%Oil
Gas
coal
Nuclear
Hydro
Renewables
Nuclear 4 1 5 1
Hydro 22 5 25 5
Renewables - - 5 1
Total 387 100 524 100
Year 2010
Source : BP Statistical Review-June 2011
29%
11%53%
1% 5% 1%
Oil
Gas
coal
Nuclear
Hydro
Renewables
INDIAINDIA –– A MAJOR GAS/LNG CONSUMERA MAJOR GAS/LNG CONSUMER
13th largest gas consumer – 70 BCM (~190 MMSCMD)
6th largest LNG importer – 16 BCM (~44 MMSCMD)
Economy increasing at CAGR of 7-8% p.a. with similarincrease in Energy Consumption
Share of Natural Gas in Indian Energy basket to Share of Natural Gas in Indian Energy basket toincrease from 11% to 20% by 2025
Despite increase in domestic gas production-dependency on imported gas to increase substantially
Pipeline network- developing into a national grid- needsto grow faster, connecting new markets
CURRENT GAS DEMAND &CURRENT GAS DEMAND &DOMESTIC SUPPLY SCENARIODOMESTIC SUPPLY SCENARIO
550+ (19.5+)
215253.4 (9.0)
306.4 (10.8)341.1 (12.1)
381.0 (13.5)
200.0
250.0
300.0
350.0
400.0
Demand Supply
( Bcf/Day)
( MMSCMD)
240 (8.5)
Demand – Mercados AnalysisSupply – Directorate General of Hydrocarbons (DGH)
215
178.9 (6.3)
146 (5.2) 155 (5.5)191.6 (6.8)198.4 (7.0)
202.9 (7.2)
0.0
50.0
100.0
150.0
200.0
2010-11 2011-12 2012-13 2013-14 2014-15 2019-20
(7.6)
-
50.00
100.00
150.00
200.00
250.00
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Gas Demand (MMSCMD)
SECTOR WISE PROJECTED GAS DEMANDSECTOR WISE PROJECTED GAS DEMAND
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Power Fertilizer City Gas Petchem-Refinery Sponge Iron
2010-11 2011-12 2012-13 2013-14 2014-15
Power 87.71 149.11 185.52 212.73 243.34
Fertilizer 49.39 57.48 68.08 68.08 68.08
City Gas 13.70 17.53 22.44 28.72 36.76
Petchem-Refinery 24.44 25.42 26.43 27.49 28.59
Sponge Iron 3.71 3.82 3.93 4.05 4.17
Total 178.94 253.36 306.41 341.08 380.95
Source: Mercados Analysis, 2010
146185
46
185
35
185
77
185
4591
126
203
40
311
388
27659
17125
19
230
Gas demand and supply, 2015Mmscmd, at customer gate prices
LARGE DEMAND BUT SENSITIVE TO PRICELARGE DEMAND BUT SENSITIVE TO PRICE
SOURCE: Indianpetro; DGH; Company annual reports; Expert interviews; McKinsey analysis
146
High Potentialdemand,2015
Price of $8-10 mmbtu
Medium Price of $11-12/ mmbtu
Price of $13-14/ mmbtu
Price of $16-17/ mmbtu
Low2010 yearendconsumption
1 Based on estimated LNG supply of 8 mtpa in 2015 including RasGas (7.5 mtpa) and 1.5 mtpa from Gorgon LNG in 2015
21 3 4
Imports
Domestic supplies
Sectors withdemand
▪ Industries▪ CNG
transport
▪ Refineries▪ Industries▪ Power
cogen
▪ Peakingpowerplants
▪ Baseloadpower
▪ New fertilizerplants
Prices at Crude of $ 100/Bbl
INDIA’s GAS INFRASTRUCTUREINDIA’s GAS INFRASTRUCTURE
LNG IN INDIALNG IN INDIA
Hydrocarbon Vision 2025’ envisaged a GDP growth of 5-6% for
the E&P sector along with demand supply scenario of oil & gas in
the Country
Current GDP growth of 7–9% translate into overall energy
demand growth at CAGR of 7.50%
Given India’s growing energy requirements & unlikelihood ofGiven 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 is around 13.5 MMTPA through
its two terminals & meeting approx. 20% of total gas supply of the
country
PETRONET LNG LIMITEDPETRONET LNG LIMITED
Incorporated on April 2, 1998
Authorized Capital USD 260 mln, Paid up capital USD 160 mln
Commencement of Commercial Operations - April, 2004
Equity
50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL ) 50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL ) 10% held by GDFI (part of GDF SUEZ) 5.20% ADB
VisionVision
To be a key energy provider to thenation by leveraging unique position inthe LNG value-chain with internationalpresence
Revenue grew 24%EBITDA growth 17%
TOWARDS THE VISIONTOWARDS THE VISION
Create and manage worldCreate and manage world--classclassLNG infrastructureLNG infrastructure
Pursue synergistic businessPursue synergistic businessopportunitiesopportunities
Continue excellence in LNGContinue excellence in LNGbusinessbusiness
Business StrategyBusiness Strategy
2849
businessbusiness
- Focus on higher capacityutilization and betteroperational efficiencies
- Diversify LNG sources
Diversify businessDiversify business
- Gas-based power generation
- Venture into city-gasdistribution/ direct marketingto far-flung consumers
- Solid cargo port at Dahej
Maintain highest standards ofMaintain highest standards ofbusiness ethicsbusiness ethics
11981425
1772
2305
146 196 208 201 273
FY-07 FY-08 FY-09 FY-10 FY-11
RevenueEBIDTA
(all values in USD Million)
DAHEJ LNG TERMINALDAHEJ LNG TERMINAL
Located at West Coast, State of Gujarat in the Gulf ofCambay
Commencement of Operations in 2004
Capacity (Mmtpa) : 5.0 10.0
Truck Loading facility can handle 2500 loadings/ yr.
LNG Cargoes unloaded :761(September 21,2011) LNG Cargoes unloaded :761(September 21,2011)
Further capacity expansion to 15 Mmtpa
Second Jetty : Under Construction
Regas & Storage Capacity : DFR Under Progress
Pre Project Activities started
DAHEJ LNG STORAGE TANKSDAHEJ LNG STORAGE TANKS
DAHEJ REGAS FACILITIES WITH AIRDAHEJ REGAS FACILITIES WITH AIR--HEATERHEATER
LNG TRUCK LODING FACILITIESLNG TRUCK LODING FACILITIES –– DAHEJDAHEJ
VAPORISATIONVAPORISATIONFACILITIESFACILITIES
WEIGH BRIDGEWEIGH BRIDGE
KOCHI LNG TERMINALKOCHI LNG TERMINAL
LNG Terminal located in Special Economic Zone with Co-developer status
Capacity 2.5 5.0 MMTPA
Tied up 1.44 MMTPA LNG from Exxon Mobil’s Gorgon Project
Two Storage Tanks being constructed by IHI, Japan Two Storage Tanks being constructed by IHI, Japan
Regasification Facilities being constructed by CTCI, Taiwan
Marine Facilities being constructed by Afcons Infrastructure Ltd
Progress on schedule, overall completion more than87%, scheduled commissioning by end 3rd Qtr. , 2012
KOCHIKOCHI –– STORAGE TANKSTORAGE TANK
KOCHIKOCHI -- MARINE FACILITIESMARINE FACILITIES
NEW THIRD TERMINAL AT EAST COASTNEW THIRD TERMINAL AT EAST COAST
Proposed Capacity: 5 MMTPA
Possible Locations: Andhra orOrissa Coast
Regasification Scheme:Indirect Fluid using ambientair heaterair heater
PFR Completed
Site Selection Process underprogress
Process for selection ofConsultant for DFR started
INTEGRATED POWER PLANT AT DAHEJINTEGRATED POWER PLANT AT DAHEJ
Proposed power plant of 3 x 356 MW-ISO (total 1068 MW CCGT)with improved performance, the expected output is 1200 MW
Fuel requirement of 1.0~1.1 Mmtpa LNG
Implementation schedule
12~15 months for pre-development activities 12~15 months for pre-development activities
33 months for construction and commissioning
DFR for a 1200 MW Power Plant - completed
Land Acquisition & Environment Clearance – under progress.
Power project planned to harness cold energy from LNGTerminal
DIRECT MARKETINGDIRECT MARKETING
Petronet exploring opportunities to supply LNG to Coastalarea consumers through small LNG Vessels in India andneighbouring countries
Direct Marketing by focusing on the following areas:
Signed HOAs with bulk end consumers in Power, Refineries& Fertilizers Sectors& Fertilizers Sectors
LNG/LCNG supplies through Trucks, to LNG hubs, SatelliteStations at customer’s premises in regions not serviced bypipelines
BUSINESS MODELBUSINESS MODEL
Robust Model
LNG supply contract with RasGas, Qatar & Exxon Mobil, Australia
Gas Sales Agreement with GAIL, IOCL & BPCL back to back with SPA
Time Charter Agreement with established consortium
Entire Fuel cost pass through including exchange rate Entire Fuel cost pass through including exchange rate
Location
Proximity to LNG suppliers
Most competitive LNG transportation cost
Proximity to Customers – HBJ pipeline, DUPL and GSPC network in
Gujarat
FINANCINGFINANCING
Very strong parentage and a robust business model
Financing cost is amongst the lowest in the industry
With the use of effective hedging techniques, theCompany has been able to maintain a low cost ofCompany has been able to maintain a low cost ofdebt service even in such turbulent times
PERFORMANCE GRAPHPERFORMANCE GRAPH
287
322 321
384
412
300
350
400
450
Sales Trillion BTU
431
486
583
638
500
600
700
Net Worth (Million USD)
125
247
287
115
0
50
100
150
200
250
300
191
233
277
352
431
0
100
200
300
400
PERFORMANCE GRAPHPERFORMANCE GRAPH
Million USD
PAT Million USD
103
113
135
100
120
140
160
1772
2305
2849
2000
2500
3000
Turnover USD Million
-6
42
68
88
56
-20
0
20
40
60
80
100
423
834
1198
1425
1772
991
0
500
1000
1500
PERFORMANCE BASED ON EMPLOYEE PARAMETERSPERFORMANCE BASED ON EMPLOYEE PARAMETERS
2010-11 2009-10 2008-09
No. of Employees 276 273 256
Turnover/ employees (USD Million) 10.31 8.47 7.24
Profit Before Tax / Employee (USD Million) 0.70 0.47 0.66
Employee Remuneration cost as % of Profit) 3.3% 3.41% 2.53%
Total no. of employees : 276
Training & Development : 6 Mandays / Employee
Average Age: 34 years (58% employee in 31-40 years of age)
63% of employees are Graduates or Post Graduates
Average years of association of employees with Company 5 years
Attrition rate 2010-11 : 4%
FINANCIAL PARAMETERSFINANCIAL PARAMETERS
0.06
0.09
0.140.15
0.12
0.18EPS (USD)
Year EPS (USD) P/E D/E Ratio
FY-06 0.06 23.99 1.17
FY-07 0.09 11.15 1.08
FY-08 0.14 11.62 0.97
FY-09 0.15 5.75 1.15
FY-10 0.12 15.19 1.12
FY-11 0.18 14.86 1.20
0.06
FY-06 FY-07 FY-08 FY-09 FY-10 FY-11
SHAREHOLDERS WEALTH CREATIONSHAREHOLDERS WEALTH CREATION
As on Mar, 31 2004 2005 2006 2007 2008 2009 2010 2011 Current
USD per share 0.58 1.00 1.34 1.01 1.60 0.87 1.78 2.67 3.87
Mkt. Price INR 27 46 62 47 73 40 82 123 178
USD per share
0.58
1.001.34
1.01
1.60
0.87
1.78
2.67
3.87
2004 2005 2006 2007 2008 2009 2010 2011 Sep/11
FINANCING STRUCTUREFINANCING STRUCTURE
Particulars DahejTerminal
KochiTerminal
2ndBerth atDahej
Total
Shareholders FundEquity Capital/Internalaccruals/Premium
250 270 60 580
((US$ MILLION)US$ MILLION)
Debt 550 630 140 1320
Total Means of Finance 800 900 200 1900
CSRCSR --THE JOURNEY HAS JUST BEGUN……………THE JOURNEY HAS JUST BEGUN……………TOWARDS AN INCLUSIVE SOCIETYTOWARDS AN INCLUSIVE SOCIETY
Participative community development programmes with GIDC Luvara & Lakhigam villages
CODEGAZ, the CSR arm of our strategic partner GDF Suez supports our cause.
Health & Sanitation
Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage.
Preventive and Social medicine aids (includes primary health centre).
Education and Employment generation programs
Construction of School , Scholarship & Vocational Training. Construction of School , Scholarship & Vocational Training.
Sponsorship of differently abled children of Tamanna School & 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.
Govt. Development Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre.
NOTESNOTES
Thank You
Dahej PlantPetronet LNG Limited
GIDC IndustrialEstate,
Plot No. 7/A, Dahej,Taluka Vagra,Distt. Bharuch
Gujarat - 392130
Corporate OfficePetronet LNG Limited,
1st Floor, World Trade Centre,Babar Road, Barakhamba
Lane,New Delhi – 110001
www.petronetlng.com
For any other info. :[email protected]
Ph: 91-11-23411411
Kochi SitePetronet LNG Limited
Survey No. 347,
Puthuvypu P.O. ,
Kochi, Kerala - 682508
Thank You
