Upload
prakhar-jain
View
219
Download
0
Embed Size (px)
Citation preview
8/3/2019 Bd 03 Sep11-III
1/49
Business Development Activities
in GAIL
GAIL Training Institute
Noida
September 3, 2011
8/3/2019 Bd 03 Sep11-III
2/49
OUTLINE
Primary Energy Mix
Indian Gas Sector
Overview -GAIL (India) Ltd.
GAILs Strategy
GAILs Business Portfolios
GAILs Global Footprints
GAILs JVs, Subsidiaries & Associate Companies Objective of BD Group
Role of BD Group
Focus Areas of BD Group
8/3/2019 Bd 03 Sep11-III
3/49
PRIMARY ENERGY MIXWORLD INDIA
INDIAFAST GROWING NATURAL GAS MARKETSource : BP Statistical Review 2011
5th Largest Energy Consumer
12,002 MTOE
Percapita: 1.7 TOE
Per capita: 0.4 TOENG CAGR(10 yrs): 2.9%
NG CAGR(10 yrs): 5.1%
Oil34%
NaturalGas24%
Coal30%
Hydro6%
Nuclear
5%
Renewables
1%
Oil30%
Natural Gas10%
Coal53%
Hydro
5%
Nuclear
1%
Renewables
1%
524 MTOE
8/3/2019 Bd 03 Sep11-III
4/49
INDIAN GAS SECTOR : SUPPLY
Domestic Reserves : 38.5 TCF
Domestic Sources 72.67
KG-D6 47.17
Long term RLNGImports 25.13
Spot RLNG imports 21.20
Total Supplies 166.17
Avg. Daily Supplies (June, 2011)
MMSCMD
CURRENT SUPPLY SOURCES
RAJASTHAN
R/P : 35 Years
Source: Infraline
CURRENT DOMESTIC SUPPLIES ARE LIMITED AND SCATTERED
Domestic Sources
LNG Import
ASSAM
TRIPURA
KG
CAUVERY
MUMBAI
OFFSHORE
CAMBAY
DAHEJHAZIRA
8/3/2019 Bd 03 Sep11-III
5/49
INDIAN GAS SECTOR : CONSUMPTION
POWER AND FERTILISERANCHOR MARKETS
INDUSTRIAL AND CITY GASGROWING MARKETS
Avg. Sector wise Gas Utilization (June, 2011)
Total consumption: 166 MMSCMDSource: Infraline
Power37%
Fertilizer23%
CGD5%
Refineries12%
Petrochemicals3%
Sponge Iron4% LPG
4%
CGD- Commercial
& Industrial4%
Internal
Consumption1%
Others
7%
8/3/2019 Bd 03 Sep11-III
6/49
INDIAN GAS SECTOR :PROJECTED DEMANDSUPPLY GAP
INDIA WILL CONTINUE TO REMAIN GAS DEFICIT MARKET
2011-12 2016-17
Total Supply (Domestic Gas + LNG) -
Conservative
249.58 326.15
Demand 326.64 485.53
Demand-Supply Gap(Conservative Scenario)
(77.06) (159.38)
Total Supply (Domestic Gas + LNG) -
Optimistic
269.08 341.55
Demand 326.64 485.53Demand-Supply Gap
(Optimistic Scenario)
(57.56) (143.98)
Source: As per XI - XII Plan, In-house data
In MMSCMD
8/3/2019 Bd 03 Sep11-III
7/49
OVERVIEW OF GAIL (INDIA) LIMITED
8/3/2019 Bd 03 Sep11-III
8/49
8
GAIL - SNAPSHOT
Integrated Natural Gas Company
25+ Years of Experience & Expertise
Government of IndiaMajority Stakeholder
Listed in BSE, NSE & London Stock Exchange
10 Years Turnover CAGR13%
10 Years PAT CAGR10% EmployeesAround 3800
Rated as Asias top Gas Utility Company for 2010 by Platts
Indias Number One Gas Company
8/3/2019 Bd 03 Sep11-III
9/49
VISION
Be the leading company in Natural Gas &
beyond with global focus, committed to
customer care, value creation for all
stakeholders & environment responsibility
MISSION
To accelerate & optimize the effective use of
Natural Gas & its fractions to the benefits
of the national economy
GAILS VISION & MISSION
8/3/2019 Bd 03 Sep11-III
10/49
GAILS STRATEGY
8/3/2019 Bd 03 Sep11-III
11/49
VAGHODIA
USAR
VIJAIPUR
PATA LAKWA
NATURAL GAS PIPELINE
LPG PIPELINE
LPG PLANT
PETROCHEM PLANT
TRIPURA
KG BASIN
VSPL
CAUVERY
BASIN
RAJASTHAN
VAGHODIA
PATA LAKWA
NATURAL GAS PIPELINE
USAR
VIJAIPUR
LPG PIPELINE
LPG PLANT
PETROCHEM PLANT
TRIPURA
KG BASIN
VSPL
CAUVERY
BASIN
RAJASTHAN
GAILs BUSINESS PORTFOLIO
GAILs Assets LocationLPG PIPELINES
2038 KMS
(3.8 MMTPA)
GAS PIPELINES
8644 KMS
(170 MMSCMD)
11 States
GAS PROCESSING7 Plants
(1.4 MMTPA)
PETROCHEMICALS
410,000 TPA (PE)
Being upgraded to 900,000 TPA.
UPCOMING PETROCHEMICALS
BCPL (JV)280,000 TPA (PE&PP)
OPaL - 1.44 MMTPA (PE & PP)
8/3/2019 Bd 03 Sep11-III
12/49
OFC
E&P Blocks
Myanmar Block
DAHEJ LNG
GAILs BUSINESS PORTFOLIO
GAILs Assets Location OFC CONNECTIVITY
13,000 KMS
E&P
27 blocks (2 Overseas) & 1 CBM block
R-LNG
PLL- Dahej (10 MMTPA)RGPPL- Dabhol (Upcoming- 5MMTPA
PLLKochi (Upcoming-2.5 MMTPA)
Subsidiary
GAIL Gas Ltd (City Gas, CNG corridor
& related infrastructure)Gas Retailing (8 JV)
IGL,MGL,BGL,CUGL,GGL, MNGL,
TNGCL, AGCL
Power
156 MW GSEG, Hazira2150 MW RGPPL, Dhabol
8/3/2019 Bd 03 Sep11-III
13/49
13
LNG
Existing
Transmission Pipelines
GAILs Existing Pipeline
Upcoming
GAILs Planned Pipeline
RILs East West Pipeline
RILs Planned Pipeline
GSPCs Planned Pipeline
City Gas/ CNG
Existing
Planned
LNG Terminal
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I & II
10 mmtpa*
HAZIRA
2.5 mmtpa
COIMBATORE
MANGALORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASANBANGALORE
KOLHAPUR
SOLAPURKAKINADA
VIJAYAWADA
DAMRA
DABHOL
5 mmtpa
KANJIKKOD
AURAIYA
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
GAS INFRASTRUCTUREEXISTING & UPCOMING
BHOPAL
KOCHI
5 mmtpa
ENNORE
2.5 mmtpa
BARMER
MANGALORE
2.5 mmtpa
TRANSMISSION CAPACITY TO GROW SIGNIFICANTLY IN COMING YEARS
8/3/2019 Bd 03 Sep11-III
14/49
GAILS OTHER BUSINESS INITIATIVES
Aggressive Plans to diversify into Renewables
& Power Sector - Focus on : Wind Energy & Solar Energy
Gas based Power Plant
Participating in MyanmarChina Gas
Pipeline Project. Pursuing Transnational pipeline Projects
Pursuing business opportunities in Gas
Rich Countries in areas of-
Shale Gas
E&P Farm-in
LNG Projects
Gas based petrochemicals.
Gas Processing.
City Gas distribution.
8/3/2019 Bd 03 Sep11-III
15/49
GAILS GLOBAL FOOTPRINTS
OVERSEAS PRESENCE
EGYPT
EQUITY IN 2 GAS RETAILING
COMPANIES
OVERSEAS OFFICE IN CAIRO
MYANMAR
PARTNER IN A1, A3 E&P BLOCKS
PARTICIPATION IN MYANMAR CHINA
PIPELINE
CHINA
EQUITY PARTNER IN CHINA GAS
50:50 JV WITH CHINA GAS
SINGAPORE
100% SUBSIDIARY, GAIL GLOBAL
SINGAPORE (PTE) LTD
8/3/2019 Bd 03 Sep11-III
16/49
GAIL- JVS & SUSIDIARIES
Joint Ventures: City Gas Distribution
MGL(BG) AGL (HPCL) BGL (HPCL) CUGL (BPCL) GGL (IOCL) IGL (BPCL) MNGL (BPCL)
TNGCL
GAIL Gas Limited
Wholly owned subsidiary of GAIL.
Incorporated for smooth implementation of CGD projects in the country. Authorized by PNGRB to implement CGD projects in Sonepat, Kota,
Dewas and Meerut.
Future Plans:
Commitment for Highways to Greenways.
CNG corridors along major highways. Investment in potential cities
TNGCL
8/3/2019 Bd 03 Sep11-III
17/49
GAIL- JVS & ASSOCIATE COMAPNIES
International JVs
GAIL China Gas Global Energy
Holdings Ltd.
South East Asia Gas PL Co. Ltd.
JVs (Others)
Petronet LNG Limited.
Ratnagiri Gas and PowerPvt. Ltd. (RGPPL)
Domestic: GSEG
International
NATGAS (Egypt)
Fayum Gas Company (Egypt)
China Gas
Associate Companies
Petrochemical JVs
Brahmaputra Cracker & Polymer Limited ( BCPL )
Petrochemical Project at Dibrugarh, Assam
GAILs equity share 70%
ONGC Petro-additions Ltd. (OPaL)
8/3/2019 Bd 03 Sep11-III
18/49
8/3/2019 Bd 03 Sep11-III
19/49
In Million US$
Revenue
ProfitAfte
rTax
TRACK RECORD OF STEADY GROWTH
Consistent growthin Top & BottomLines
10 years CAGR forRevenue : 13 %
10 years CAGR forPAT : 10 %
GAILS FINANCIAL PERFORMANCE
8/3/2019 Bd 03 Sep11-III
20/49
BUSINESS DEVELOPMENT ACTIVITIES INGAIL (INDIA) LIMITED
8/3/2019 Bd 03 Sep11-III
21/49
OBJECTIVE OF BD GROUP
To explore and identfy business opportunities in India &abroad along the natural gas value chain in line with
strategic objectives of GAIL.
Type of business activities pursued by GAIL :
Greenfield Projects
Equity Investments
Farm-In Opportunities
Business Diversification
Mergers & Acquisitions
8/3/2019 Bd 03 Sep11-III
22/49
ROLE OF BD GROUP
Identification of business opportunity In-house Environment scanning.
Interaction with companies, investment banks & tradechambers in India & abroad.
Interaction with MoP&NG & Indian missions abroad.
Signing of various agreements for sharing information /deciding terms of cooperationCA, MoU, SoU etc.
In-house analysis of the business opportunity. Putting proposal to GAILs management for pursuing the
opportunity
8/3/2019 Bd 03 Sep11-III
23/49
ROLE OF BD GROUP
Submission of EoI / Indicative Bid expressing intent toparticipate.
Carry out due-diligence for existing projects or assets
Carry out PFR / DFR for new project
Transaction related negotiations
Obtaining Investment Approval from GAIL Board
Finalisation and execution of Participation Documents /
Deeds.
Monitoring performances ofGAILs domestic & overseasinvestments.
8/3/2019 Bd 03 Sep11-III
24/49
FOCUS AREAS OF BD GROUP
E & P Farm-In (Gas Blocks Overseas)
Gas Sourcing
Midstream Natural Gas Pipelines (Overseas)
LNG ProjectsLNG Regas Terminals / Equity LNG / FSRU
Transnational Pipelines
M&A -
Shale Gas acreages,
Integrated LNG Liquefaction Terminals
8/3/2019 Bd 03 Sep11-III
25/49
FOCUS AREAS OF BD GROUP
Gas Processing Projects
Diversification
Downstream
Gas based Petrochemical Projects
Gas based Power (domestic)
Renewable Energy-
Solar, Wind
Overseas City Gas Projects
8/3/2019 Bd 03 Sep11-III
26/49
GasSourcing
Acquisition ofshale
gas assets in US
Equity stake inintegrated
LNG Project
Signing of GSPA &Other important
Agreements related
To TAPI
Finalization oflocationof FSRU
SHORT TERM MILESTONES 2012-13
8/3/2019 Bd 03 Sep11-III
27/49
SHORT TERM MILESTONES 2012-13
Midstream &Downstream
P/L project inGhana
Gas Processing
Ghana &Nigeria
DomesticPetrochemical
projects
Overseas CGDproject- Egypt
8/3/2019 Bd 03 Sep11-III
28/49
SHORT TERM MILESTONES 2012-13
Diversification
Investment approvalFor gas based power
Project
Solar Power-Participation in
Bidding process underJNNSM phase II &
solar project in
Rajasthan
Small Scale LNGProject
8/3/2019 Bd 03 Sep11-III
29/49
Thank You
8/3/2019 Bd 03 Sep11-III
30/49
GAS SOURCING
Exploration & Production (E&P)
Participation in Bidding Rounds - (NELP) / CBM Explore participation in international E&P opportunities
Transnational Pipelines
Pursuing TAPI pipeline project
LNG Projects
LNG Sourcing / LNG liquefaction / FSRU
Sourcing of LNG from upcoming LNG projects-short, medium & long term basis
Expansion of domestic RLNG capacity Exploring possibilities of gas supplies by FSRU
on East Coast
M&A Opportunities
Looking to acquire Shale Gas acerages
Farm-In - Producing Gas Blocks Explore equity participation in integrated
LNG project overseas for sourcing equity gas
8/3/2019 Bd 03 Sep11-III
31/49
MID-STREAM
Natural Gas PipelinesDomestic opportunities
Bidding for transmission pipeline projects
invited by PNGRB
Construction of Spur lines joining main
transmission networks
Natural Gas Pipelines
International opportunities
Pursuing participation in pipeline projects
abroad
LPG Pipelines
Expansion of existing LPG transmission
capacity
8/3/2019 Bd 03 Sep11-III
32/49
DOWNSTREAM
Gas Processing Exploring gas processing opportunities
in gas rich countries
City Gas / CNG
Participation in upcoming domestic city gas
projects through GAIL Gas / JVs with Oil PSUs
Gas based Petrochemicals Domestic capacity expansion.
Participation in greenfield projects
Explore project opportunities in gas
rich countries.
8/3/2019 Bd 03 Sep11-III
33/49
DIVERSIFICATION
Gas Based Power Plants Exploring gas based power opportunities
Renewable Energy Projects
Renewables- focus areas for GAIL
Focus on solar, wind & biomass projects
Small Scale LNG
Pursuing SSLNG to develop small / stranded
gas fields
8/3/2019 Bd 03 Sep11-III
34/49
INDIAN GAS SECTOR - AN OVERVIEW
8/3/2019 Bd 03 Sep11-III
35/49
8/3/2019 Bd 03 Sep11-III
36/49
LNG INFRASTRUCTURE IN INDIA
2 operating LNG regasificationterminals.
Petronets LNG Terminal at Dahejwith a capacity of 10 MMTPA .
Terminal at Hazira with a capacity of3.3 MMTPA being operated by Shell& Total.
A LNG terminal at Dabhol with acapacity of 5 MMTPA is expected tobe commissioned later this year.
PLL is also working on anotherterminal at Kochi with initial capacityof 2.5 MMTPA & with a provision ofexpansion upto 5 MMTPA.
8/3/2019 Bd 03 Sep11-III
37/49
DOMESTIC GAS SUPPLY OUTLOOK
(FIGURES IN MMSCMD)
Source: As per XI - XII Plan, In-house study
Supply Sources 2007-08 2011-12 2013-14 2016-17
ONGC (Firm + Indicative) 47.19 51.65 49.00 42.36
Oil 10.00 10.00 10.00 10.00
Pvt. / JVs (As per DGH) 22.21 102.57 101.00 99.09
Projected Domestic SupplyConservative
79.40 164.22 160.00 151.45
Additional RIL 0.00 2.00 2.00 3.20
GSPC 0.00 4.50 4.50 4.50
Additional Gas Anticipated 0.00 13.00 10.00 7.70
Total Projected SupplyOptimistic
79.40 183.72 176.50 166.85
Based on revised estimate of ONGC (Firm + Indicative) and DGH
8/3/2019 Bd 03 Sep11-III
38/49
LNG SUPPLY OUTLOOK
(FIGURES IN MMSCMD)
Source: As per XI - XII Plan, In-house study
LNG Terminal 2007-08 2011-12 2013-14 2016-17
Dahej 6.50 12.00 12.00 12.50
Hazira 2.50 2.50 5.00 5.00
Dabhol - 5.00 5.00 5.00
Kochi - 2.50 2.50 5.00
Mangalore - - - -
Ennore - - - -
Mundra - - 2.50 -
Total LNG Supply (MMTPA) 9.0 22 24.50 27.50
Total LNG Supply (MMSCMD) 36 85.36 95.06 106.70
New terminals: Ennore, Mangalore MundraExpansion: Hazira and Kochi
8/3/2019 Bd 03 Sep11-III
39/49
OTHER SUPPLY SOURCES
Pipeline 2013-14 2016-17
IPI 30 30
TAPI 38 38Total 68 68
India is pursuing transnational pipelines like Iran Pakistan
India (IPI) & Turkmenistan Afghanistan Pakistan India(TAPI) Pipeline projects.
8/3/2019 Bd 03 Sep11-III
40/49
TOTAL GAS SUPPLY OUTLOOK
2007-08 2011-12 2013-14 2016-17
Total Domestic Gas + LNG + Intl
Pipelines (Conservative)
114.32 249.58 323.06 326.15
Total Domestic Gas + LNG + Intl
Pipelines (Optimistic)114.32 269.08 339.56 341.55
(FIGURES IN MMSCMD)
Source: As per XI - XII Plan, In-house study
8/3/2019 Bd 03 Sep11-III
41/49
CONSOLIDATED SECTOR WISE DEMAND PROJECTIONS
Sector 2007-08 2011-12 2013-14 2016-17
Fertilizers 41.02 79.36 85.84 96.55
Power 73.68 148.38 179.44 238.84
City Gas 12.08 15.83 18.46 23.26
Industrial 15.00 21.96 26.57 35.37
Petrochemical / Refineries / InternalConsumption 25.37 33.25 38.07 46.64
Sponge Iron / Steel 6.00 27.86 33.71 44.87
Total 173.15 320.58 382.09 485.53
Assumptions:
o For power, fertilizer and steel sector, the projections are given by MoP and MoSrespectively.
o For Industrial sector, annual growth rate has been taken from EIU estimates.o For City Gas and Petrochemicals growth rate of 8%, 5% respectively are
considered.o For Steel sector growth rateof 6% is assumed after 2011-12.
Source: As per XI - XII Plan, In-house study
(FIGURES IN MMSCMD)
DOMESTIC GAS SUPPLY OUTLOOK
8/3/2019 Bd 03 Sep11-III
42/49
DOMESTIC GAS SUPPLY OUTLOOK
PROJECTION BY WORKING GROUP OF XI 5 YEAR PLAN
Sources 2007-08 2008-09 2009-10 2010-11 2011-12
ONGC + OIL 57.28 58.42 55.69 54.67 51.08
Pvt. / JVs (As per DGH) 23.26 61.56 60.28 58.42 57.22Projected Domestic
Supply - Conservative 80.54 119.98 115.97 113.09 108.3
Additional Gas Anticipated - - 74 84 94
Total Projected Supply -
Optimistic 80.54 119.98 189.97 197.09 202.3
MMSCMD
LNG SUPPLY OUTLOOK
8/3/2019 Bd 03 Sep11-III
43/49
LNG SUPPLY OUTLOOK
PROJECTION BY WORKING GROUP OF XI 5 YEAR PLAN
LNG Supply Source 2007-08 2008-09 2009-10 2010-11 2011-12
Dahej 5 5 7.5 10 10
Hazira 2.5 2.5 2.5 2.5 2.5
Dabhol 1.2 2.1 5 5 5
Kochi - - - 2.5 5
Mangalore - - - - 1.25
Total LNG Supply(MMTPA) 8.7 9.6 15 20 23.75
Total LNG Supply
(MMSCMD) 30.45 33.6 52.5 70 83.13
CONSOLIDATED SECTORWISE GAS DEMAND OUTLOOK -
8/3/2019 Bd 03 Sep11-III
44/49
CONSOLIDATED SECTORWISE GAS DEMAND OUTLOOK
PROJECTION BY WORKING GROUP OF XI 5 YEAR PLAN
MMSCMD
Sector 2007-08 2008-09 2009-10 2010-11 2011-12
Fertilizers 41.02 42.89 55.9 76.26 76.26
Power 79.7 91.2 102.7 114.2 126.57
City Gas 12.08 12.93 13.83 14.8 15.83
Industrial 15 16.05 17.17 18.38 19.66
Petrochemical /
Refineries / Internal
Consumption 25.37 27.15 29.05 31.08 33.25
Sponge Iron / Steel 6 6.42 6.87 7.35 7.86
Total 179.17 196.64 225.52 262.07 279.43
OVERALL DEMAND SUPPLY BALANCE
8/3/2019 Bd 03 Sep11-III
45/49
OVERALL DEMAND SUPPLY BALANCE
PROJECTION BY WORKING GROUP OF XI 5 YEAR PLAN
MMSCMD
2007-08 2008-09 2009-10 2010-11 2011-12
Total Supply I -
Conservative 110.99 153.58 168.47 183.09 191.42
Total Supply II -Optimistic 110.99 153.58 242.47 267.09 285.42
Demand (MMSCMD) 179.17 196.64 225.52 262.07 279.43
Demand Supply Gap I -
Conservative 68.18 43.06 57.05 78.98 88.01
Demand Supply Gap II -
Optimistic 68.18 43.06 -16.95 -5.02 -5.99
8/3/2019 Bd 03 Sep11-III
46/49
REGULATORY STRUCTURE
8/3/2019 Bd 03 Sep11-III
47/49
REGULATORY STRUCTUREIN OIL & GAS SECTOR
Ministry of Petroleum
& Natural Gas
Director General of
Hydrocarbons
E&P
Oil Industry
Development Board
Sector Development
Petroleum & Natural
Gas Regulatory Board
Downstream Activities
E&P Cos Gas Mktg Cos Oil Refining Cos Oil Mktg Cos
CGD PROJECTS EXISTING & UPCOMING CITIES
8/3/2019 Bd 03 Sep11-III
48/49
CGD PROJECTS- EXISTING & UPCOMING CITIES
Existing Infrastructure:
Covers 61 cities (41-Operating & 20 Under Construction) Total players: 23
CNG stations: 580
Households served: About 1.2 million
Vehicles catered: About 1 million
Gas volumes sales to CGD: 10-11 mmscmd
Proposed CGD networks:
Several CGD networks are proposed across the country. Over the next 23 years about 50-60 cities are likely to be awarded
by the Regulator which is envisaged to go up-to 243 cities.
In a short period of time the landscape for city gas is likely to stand
altered dramatically.
P i l A f C i E S
8/3/2019 Bd 03 Sep11-III
49/49
Potential Areas of Cooperation- Energy Sector
Market
India offers an stable, large and growing market for Russian exports ofoil and gas.
Upstream
Government of India has launched the IX rounds New Exploration
Licensing Policy (NELP) on 15th October, 2010. Russian companiescan join hands with Indian cos in bidding for oil & gas blocks.
Downstream
Opportunities exists for Russian companies to participate indownstream oil and gas projects in India particularly in green-fieldrefineries & petrochemicals, City Gas Distribution projects etc.
LNG Sourcing
Indian companies will be keen to explore LNG sourcing opportunitywith Russian companies & also the opportunity to participate in LNG