Analysis of Venezuela, Russia and Nigeria Natural Gas

Analysis of Venezuela, Russia and Nigeria Natural Gas Industry and The Impact on

Natural Gas Sector in China

1

CONTENTS

1 Introduction

CONTENTS

2Natural Gas in Venezuela

3 Natural Gas in Russia4 Natural Gas in Nigeria

5 Natural Gas in China

6 Impact on China7 Conclusion

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INTRODUCTIONINTRODUCTION

Global Natural Gas Trade in 2016

• International natural gas trade– 4.8% increase

• LNG Export &Import• Global Fleet

– 410 vessels – 146 vessels on order

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INTRODUCTIONINTRODUCTION

Proven Reserves of Natural Gas

‐

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0TCM

4

VENEZUELAVENEZUELA

Primary Energy Mix

Source: BP Statistical Review of World Energy 2017

5

Proven Reserves

VENEZUELAVENEZUELA

Natural Gas Demandby Sector

6

Natural Gas Production & Consumption

Source: BP Statistical Review of World Energy 2017

VENEZUELAVENEZUELA

7

Source: BP Statistical Review of World Energy 2017

Major natural gas trade worldwide (bcm)

Role in global natural gas market

RUSSIARUSSIA

Proven Reserves

Source: BP Statistical Review of World Energy 2017

8

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

TCM

RUSSIARUSSIA

Primary Energy Mix

Source: BP Statistical Review of World Energy 2017

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Natural Gas Export

RUSSIARUSSIA

New Developments

Source: US Energy Information Administration and HIS EDIN

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NIGERIANIGERIA11

Proven Reserves

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0TCM

NIGERIANIGERIA

Gas Production & Consumption

12

Primary Energy Mix

139 Mtoe

NIGERIANIGERIA

LNG Exports

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World’s top 5 natural gas flaring countries in 2014

900 Bcf

Gas Flaring

CHINACHINA

Natural Gas in China

• World’s 3rd largest gas consumer

• Government support for LNG imports

• Coal-to-gas switching

• Sector environmental policy targets

• Increasing demand

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CHINA-VENEZUELACHINA-VENEZUELA

• In 2015, China was the second largest importer from Venezuela, most of which is oil (up to $6.1 billion).

• High possibility to export natural gas to China in the future, owing to the expansion of the Panama Canal.

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CHINA-RUSSLACHINA-RUSSIA

• Power of Siberia Pipeline - Russia will start supplying natural gas to China through a new pipeline – the Power of Siberia pipeline by the end of 2019.

• Yamal LNG Project - CNPC, Chinese banks, Chinese shipbuilders and Chinese shipping companies are involving .

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CHINA-NIGERLACHINA-NIGERIA

• In November 2016, China Machinery Engineering Corporation signed a contract with the Southfield oil Corporation (the Nigeria adauto Valley natural gas processing plant project).

• Kaduna - Kano section in Ajaokuta - Kaduna - Kano natural gas pipeline project.

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CONCLUSIONCONCLUSION

Venezuela and China are interested in strengthening ties of cooperation for potential LNG export to China.

The expansion of the Panama Canal has reduced the voyage time for LNG to travel from the U.S Gulf Coast to the Chinese market.More opportunities to explore and start new natural gas/LNG projects in the future between Russia and China.

It is possible that Nigeria will increase the volume of LNG export to China

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