0Malaysian Gas Association
IPLOCA Annual ConventionIPLOCA Annual ConventionSydney (1Sydney (1--5 October 2007)5 October 2007)
The IGU And PETRONAS Role in GasThe IGU And PETRONAS Role in Gas
By :
Ho Sook WahMD/CEO PETRONAS Management Training Sdn. Bhd.
Vice-Chairman, Coordination Committee, International Gas Union (IGU)
4 October 2007
1Malaysian Gas Association
Table of content Table of content
Overview of the International Gas Union (IGU)Overview of the International Gas Union (IGU)
The current IGU triennium 2006 The current IGU triennium 2006 –– 2009 2009
Outlook for Malaysian triennium 2009 Outlook for Malaysian triennium 2009 –– 20122012
Role of PETRONAS in the Gas BusinessRole of PETRONAS in the Gas Business
2Malaysian Gas Association
IGU represents around 95% of all gas sales worldwide IGU represents around 95% of all gas sales worldwide ……..
Members Non Members
69 Chartermembers(68 countries)
28 Associate members
Gas Companies can become member and benefit from IGU’s vast networking possibilities ….
3Malaysian Gas Association
IGUIGU’’s activities covers the entire gas chains activities covers the entire gas chain……
E.g.. Of Study Groups in the 2006 – 2009 Triennium
Storage Distribution UtilisationTransport
&Transmission
E&P
Underground Gas Storage (UGS) Database
UGS Technology Improvements
Intelligent UGS (iUGS)
Industrial utilisation
Domestic & commercial utilisation
Natural Gas Vehicle (NGV)
Remaining conventional world gas resources and technological challenges for their development
Difficult reservoirs and unconventional natural gas resources
Impact of regulation on gas transmission, safety and security of supply
Review of new technologies in pipeline and construction monitoring
Contribution of gas transmission to climate protection and sustainable development
Review of Asset Management strategies & practices
Review of leakage reduction strategies & practices
Development of best practices for the prevention of third party interference damage to distribution assets
4Malaysian Gas Association
…… as well as strategic areas related to gas that impacts as well as strategic areas related to gas that impacts IGUIGU’’s image in the worlds image in the world
E.g.. Of Study Groups in the 2006 – 2009 Triennium
Sustainable Development
Strategy, Economic & Regulation
DevelopingMarkets LNG
Evolution, expansion & promotion of IGU’s Guiding Principles on Sustainable Development & Climate Change
Gas industry response to climate change: Greenhouse gases (GHG) reduction case studies
Supply & Demand to 2030
Gas Price Formation & trends
Regulation & Future Industry Structure
South West & Central Asia
South America
South Eastern Europe
LNG quality & inter-changeability
LNG contract clauses for more flexible global LNG markets
Remote & offshore LNG facilities
5Malaysian Gas Association
How does IGU promotes gas How does IGU promotes gas ……. ?. ?
9 Technical Committees with Study Groups
Task Forces e.g. Research and Development
The World Gas Conference every 3 years
Organiser of IGU Gas Research Conference (IGRC)Next conference in Paris in October 2008
Co-sponsor of LNG conferenceLNG-15, recently held in Barcelona from 24-27 April 2007
Liaison with UN and other international energy organisations
6Malaysian Gas Association
Table of content Table of content
Overview of the International Gas Union (IGU)Overview of the International Gas Union (IGU)
The current IGU triennium 2006 The current IGU triennium 2006 –– 2009 2009
Outlook for Malaysian triennium 2009 Outlook for Malaysian triennium 2009 –– 20122012
Role of PETRONAS in the Global LNG BusinessRole of PETRONAS in the Global LNG Business
7Malaysian Gas Association
President
CC SecretaryCC Vice Chairman
Roberto BrandtArgentina
Ernesto Lopez AnadónArgentina
Andres KiddArgentina
CC Chairman
Secretary GeneralPeter StormDenmark
Vice President Datuk Rahim HashimMalaysia
Ho Sook WahMalaysia
WOC 2Storage
VladimirOnderka
Czech Rep.
WOC 3Transmission
HelgeWolf
Germany
TFR&D
PGC CDeveloping
Markets
Mohd. FaridAmin
Malaysia
PGC BStrategy,
Economics& Regulation
Pedro Moraleda
Spain
PGC DLNG
SeiichiUchinoJapan
WOC 4Distribution
JeremyBending
UK
PGC ASustainable
Development
WOC 1Exploration
& Production
VladimirYakushev
Russia
WOC 5Utilisation
JeanSchweitzerDenmark
MarcFloretteFrance
TFGas MarketIntegration
JorgeDoumanianArgentina
Knut BarlandNorway
Gas experts from all over the world are represented in Gas experts from all over the world are represented in the IGU the IGU ……
8Malaysian Gas Association
The current triennium is under the Argentine Presidency, The current triennium is under the Argentine Presidency, (2006 (2006 –– 2009)2009)
24th World Gas Conference in October 2009, in Buenos Aires, Argentina
ThemeThe global energy challenge: “Reviewing the strategies for natural gas“
MissionIncrease the value to the membership:1. promote the exchange of knowledge and
information2. provide solid and concrete reference tools for
decision makers
9Malaysian Gas Association
Reviewing the strategies for natural gas towards 2030
Develop a prospective analysis of the key drivers for the next 25 years
1. The Global Energy Challenge
The Triennial Work Programme (TWP) is based on three strategic guidelines ….
10Malaysian Gas Association
Guideline no. 2 focuses on a technical and operational Guideline no. 2 focuses on a technical and operational perspective perspective ……
Analyse short term intricacies of supply from a more technical and operational perspective along the entire supply chain
2. Contribution of the natural gas industry in terms of security of supply, safety and environment
11Malaysian Gas Association
…… increasing gas market integration makes it increasing gas market integration makes it more competitivemore competitive……!!
Support a healthy investment and business climate and high–quality dialogue between governmental and corporate players
3. Regional gas market integration as a key driver for sustainable economic growth
12Malaysian Gas Association
The Work The Work ProgrammeProgramme is being implemented by the 9 is being implemented by the 9 IGU Standing Committees 2006 IGU Standing Committees 2006 -- 20092009
All IGU Members can nominate representatives to the IGU Committees
Some 500 Leaders and experts from the gas industry world-wide are currently participating in the work of IGU in this Triennium.
13Malaysian Gas Association
Triennial Work Programme (Triennial Work Programme (TWPTWP)) →→ Now Now 2288 Topics / Topics / Study GroupsStudy Groups
Group Study Group 1 Study Group 2 Study Group 3
WOC1 Conventional resources Unconventional resources
Gas utilisation efficiency indicators
TF R&D Role and structure of R&D within the gas industry /IGRC
WOC2 UGS database UGS technology improvements
Intelligent UGS
WOC3 Impact of regulation New technologies Contribution to SD
WOC4 Asset management Leakage reduction 3rd party damage
Industrial Domestic & commercial Transport (NGV)WOC5
PGCA Guidelines on SD GHG reduction case studies Post Kyoto concept
PGCB Supply & demand Price formation and trendsNatural gas industry outlook to 2030
Regulation & future industry structure
PGCC SW & Central Asia South America SE Europe
PGCD LNG quality & inter-changeability
LNG contracting flexibility Creative solutions for new LNG facilities
TF GMI Key success factors to favour regional energy and gas market integration
Malaysian Gas Association
LA RURAL – Buenos AiresWGC 2009 Congress & Exhibition venue
16Malaysian Gas Association
Table of content Table of content
Overview of the International Gas Union (IGU)Overview of the International Gas Union (IGU)
The current IGU triennium 2006 The current IGU triennium 2006 –– 2009 2009
Outlook for Malaysian triennium 2009 Outlook for Malaysian triennium 2009 –– 20122012
Role of PETRONAS in the Global LNG BusinessRole of PETRONAS in the Global LNG Business
17Malaysian Gas Association
2525thth World Gas ConferenceWorld Gas Conference
4-8 June 2012Kuala Lumpur, MalaysiaTheme : ???Strategic Guidelines : ???
18Malaysian Gas Association
Works have already started towards positioning Malaysia Works have already started towards positioning Malaysia for the IGU Presidency 2009 for the IGU Presidency 2009 –– 2012 2012 ……
1st workshop was held in Kuala Lumpur in August 2006 to formulate possible theme and strategic guidelines
Internal perspectives
2nd workshop was held on 20-21 August 2007 in Putrajaya to review and finalise the theme and strategic guidelines
Regional stakeholders will be involved• Australia, Japan, Korea, Singapore,
Thailand, Indonesia, India
Panel Discussion on “The Prospects of Gas for Asia - Issues, Challenges and Opportunities”
19Malaysian Gas Association
Key trends and challenges for gas industry foreseen in the Key trends and challenges for gas industry foreseen in the triennium 2009triennium 2009--2012 were identified during the workshop2012 were identified during the workshop
More use of gas – utilisation for economic developmentDifficulty for accessConvergence of gas marketGas interest moving to AsiaGrowing global demandCompeting fuel sources from non-hydrocarbon resourcesResources (gas) owners will be major playersGlobalisationConservation of energy utilisation : EfficiencySufficient gas vs. diversification (coal & nuclear)
Depleting resourcesMonetisation of stranded gas – Technology– Accessibility due to Geo-PoliticsCompetition from coal, nuclear and renewablesHow best to tackle Geopolitical issuesHow best to utilise gasHow to internationalise gas market
TRENDSTRENDSTRENDS CHALLENGESCHALLENGESCHALLENGES
20Malaysian Gas Association
The Strategic Guidelines during Malaysian Presidency will The Strategic Guidelines during Malaysian Presidency will try to address the rising trends and challenges to the gas try to address the rising trends and challenges to the gas industry going forward industry going forward ……
Possible Strategic Guidelines under consideration
Global and regional role on Natural Gas for sustainable economicdevelopment and environmentImproving availability of resources and access to markets through technology and collaborationsEnhancing the utilisation and efficiency throughout the gas value chainPromoting capability development for the gas industryBalancing the needs of all stakeholders throughout the gas valuechainMaximising gas efficiency throughout the gas value chain leveraging on technology, regulation and gas pricing.Efficient use of resources for the development of gas focusing on human capital and finance.The concept of peak gas: availability constraint
21Malaysian Gas Association
Table of content Table of content
Overview of the International Gas Union (IGU)Overview of the International Gas Union (IGU)
The current IGU triennium 2006 The current IGU triennium 2006 –– 2009 2009
Outlook for Malaysian triennium 2009 Outlook for Malaysian triennium 2009 –– 20122012
Role of PETRONAS in the Global LNG BusinessRole of PETRONAS in the Global LNG Business
22Malaysian Gas Association
National oil company of Malaysia
Exclusive rights to petroleum resources in Malaysia
Operates as a company / business entity
Fully integrated multinational oil and gas company
Business interests in more than 30 countries worldwide
PETRONASPETRONAS’’ Corporate ProfileCorporate Profile
23Malaysian Gas Association
PETRONAS PETRONAS –– An Integrated Petroleum CompanyAn Integrated Petroleum Company
PETROCHEMICAL
PETRONAS is a fully integrated petroleum company involved in exploration & production, refining, gas processing and transmission, gas liquefaction, manufacturing of petrochemical products, marketing and trading, and integrated logistics.
EXPLORATION &PRODUCTION
CONDENSATES
PROCESSING
LIQUEFACTION LNG
REFINING
CRUDE OIL
MARKETING FACILITIES
PETROLEUM PRODUCTS
LPG
SALES GAS
FERTILISERS
LNG
OIL
GAS
AROMATICS
24Malaysian Gas Association
PETRONASPETRONAS’’ continue to improve its position among the continue to improve its position among the Fortune Global 500 companiesFortune Global 500 companies
Source : Fortune 500 July 2007, Profit refers to Profit after tax.
USD
bill
ion
FORTUNE GLOBAL 500FORTUNE GLOBAL 500
• BY PROFITS
2007 2006
8 8
• RETURN ON REVENUE 1 1
• RETURN ON ASSETS 4 3
PETROLEUM REFINING INDUSTRYPETROLEUM REFINING INDUSTRY
2007 2006
• PROFITS 18 15
PETRONAS RANKINGSPETRONAS RANKINGS
• REVENUES 121121 120
• RETURN ON REVENUE 8 6
39.5
25.4
22.0
17.115.5 14.7
13.2 12.8 12.8 11.5
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
25Malaysian Gas Association
Currently PETRONAS has interests in more than 30 Currently PETRONAS has interests in more than 30 countries worldwidecountries worldwide
UpstreamAlgeriaAngolaBeninCubaEquatorial GuineaEthiopiaIranMauritaniaMoroccoMyanmarMozambiqueNigerPakistanTurkmenistanYemen
ChadCameroonEgyptIndonesia
UPSTREAM& DOWNSTREAM
PhilippinesSudanVietnamMalaysia
Australia ArgentinaCambodiaChina
IndiaSouth AfricaThailandUnited Kingdom
DOWNSTREAM
26Malaysian Gas Association
PETRONAS PETRONAS –– Develops the gas reserves from E&P activities to Develops the gas reserves from E&P activities to realiserealise its value for the benefit of the nationits value for the benefit of the nation
Gas Processing
Plants
LiquefactionLNG Export
LPG
Extraction
Butane Export
PropaneExport
Ethane
Methane
Condensate
Refineries
NGV
Power
Industries
Gas District Cooling
Households
Transport
Industries
Households
Petrochemical
Feedstock
27Malaysian Gas Association
PETRONAS LNG Complex is currently the worldPETRONAS LNG Complex is currently the world’’s largest s largest LNG producing complex at a single location LNG producing complex at a single location 23.3. MTPA23.3. MTPA
Atlantic Basin -Spot
Cargo
Future Markets
Bintulu
Taiwan (49%)
Korea (21%) Japan (25%)MLNG Sdn. BhdStartup : 1983No. of Trains : 3Production Capacity (MTPA) : 8.1
MLNG Dua Sdn. BhdStartup : 1995No. of Trains : 3Production Capacity (MTPA) : 7.8
MLNG Tiga Sdn. BhdStartup : 2003No. of Trains : 2Production Capacity (MTPA) : 7.4
28Malaysian Gas Association
LNG Shipping Capability LNG Shipping Capability –– WorldWorld’’s largest owner and s largest owner and operator of LNG fleetoperator of LNG fleet
Currently, PETRONAS through it’s subsidiary MISC has 24 LNG ships making it the world’s largest owner and operator of LNG fleet (11% of global fleet)
With 5 more LNG tankers being constructed and scheduled to be delivered, PETRONAS will own 29 LNG vessels of various sizes by 2009 (1.8 MTPA total capacity)
PETRONAS is a reputable and reliable LNG supplier, with total delivery of more than 4,000 LNG cargoes to its customers since 1983.
29Malaysian Gas Association
PETRONAS : A Global LNG PlayerPETRONAS : A Global LNG PlayerMilford Haven, UKMilford Haven, UK
• Regas Facility• Startup : 2007• Production Capacity : 4.4 MTPA
ALTCOALTCO
• ASEAN LNG Trading Company (ALTCO)
• Established July 2003• LNG trading
GreenfieldIn OperationLNG Trading Company
Pars LNG, IranPars LNG, Iran
• Startup : 20011/12• Production Capacity : 8.0 MTPA
Egyptian LNGEgyptian LNG
• Startup : 2005• Production Capacity : 7.2 MPA
Star Energy, UKStar Energy, UK
• Gas storage facility
30Malaysian Gas Association
PETRONAS PETRONAS –– Develop our gas reserves from E&P activities to Develop our gas reserves from E&P activities to realiserealise its value for the benefit of the nationits value for the benefit of the nation
PGU Projects
Phase 1 - 1984Phase 2 - 1992Phase 3 - 1997JDA - 2005
PRAI
PORT KLANGCONNAUGHT BRIDGE
SERDANG
PORT DICKSONMELAKA
P. GUDANGSENOKO
SEV / GB3
KUANTAN
SEGAMAT
JERNEH(1992)
KUALA LUMPUR
LAWIT(1997)
BEKOK
THAILAND
JDA(2005)
West Natuna ‘B’(Indonesia -2002)
PM-3(2003)
ANGSI (2002)
GELUGOR
TTPC
PAKA
SONGKHLA
BINTANG (2003)
RESAK(2000)
GPPs KERTIH
DUYONG (1984)
New connections (West Natuna ‘B’ and JDA)PGU Loop
Imported Gas56
500500
19981999
GPP
1234
CAPACITY(mmscfd)
250250250250
GAS-IN
1984199219921994
TOTAL INVESTMENT = RM 26 BILLION
31Malaysian Gas Association
PETRONAS: PETRONAS: MonetisationMonetisation of Gas Reserves of Gas Reserves –– Offshore SabahOffshore Sabah
KIMANIS
To MLNG
Sabah Oil and Gas Terminal (SOGT)
Sabah Onshore Gas Terminal (SBGAST)
32Malaysian Gas Association
Development of the TranDevelopment of the Tran--ASEAN gas pipelines infrastructureASEAN gas pipelines infrastructure
INDONESIA
PHILIPPINES
VIETNAM
THAILAND
LAOS
CAMBODIA
MYANMAR
Existing Gas Pipeline
Work in Progress/Planned Gas Pipeline
LEGEND
Cross-Border Pipeline
Planned Cross-Border Gas Pipeline Interconnection
7 New Likely TAGP Interconnections
MALAYSIABRUNEI DARUSSALAM
SINGAPORE
TOTAL BILATERALCONNECTION
Approx 2300 km
33Malaysian Gas Association
3rd Asian Pipeline Conference and Exhibition
We welcome IPLOCA members to visit Malaysia during the Asian Pipeline Conference and Exhibition which will be held from 21-22 November 2007 in Kuala Lumpur.Third conference in our series organised by the ASCOPE Gas Centre.Highlights include:
Developments of the Trans-ASEAN Gas PipelineUpdates of pipeline projects in Vietnam, Thailand and SumatraPipeline Integrity ManagementNew Technology and materials
34Malaysian Gas Association
ThankThankYouYou