PPT - Telugunadu CMA Convention

Report
Infrastructure, Petroleum and Gas
: Key Enabler for successor states
A.P. Gas Distribution Corporation
(A Joint Venture of APGIC and GAIL Gas Limited)
Vizag
20 September
2014
Objectives of the session
2




Opportunities for establishing infrastructure
facilities
Developing petroleum and gas corridors
Infrastructure as pre-requisite for industrial
growth
and
economic
activities
PPP model: Pros & cons
3
Disclaimer
The following presentation and views are for
information purpose only and are express personal
opinion of the speaker. These are not endorsed by GAIL
, APGDC or GoAP. Audience may independently verify
before taking action and speaker does not held any
responsibility for accuracy of information contained
therein.
Presentation Outline
4








Successor States: Value unlocking in Oil & Gas Sector
Introduction of APGDC
Transmission & Distribution Infrastructure
Oil and Gas production infrastructure
LNG Import facilities
Refineries & Product / LPG Pipelines
Oil & Gas Infrastructure : Key enabler of growth
Key drivers and Challenges
Value unlocking in Oil & Gas Sector
5
To Bhilwara


To Ankot (Gujarat)
Gangavaram
Kakinada
Offshore Gas fields
(RIL, ONGC, Cairn, GSPL)


GAIL KG Basin Network
ENPL
Legends:
GAIL KG Network:
EWPL (RGTIL) :
KrishnapatnamMVPL (under const):
P/l under bidding :
LNG Terminals planned:
Gas Fields :
Ennore


Successor States
Specific priorities in individual
states
Focussed
Industrial
development
Decentralization – towards
inclusive growth
Deeper focus in Oil & Gas in
A.P. : production, import,
Distribution & export to other
states
Telengana
:
Acts
as
consumption centre as well as
transit corridor
Paradigm change & New
Synergy with other states :
New product pipeline (from
Paradip), power transmission
from Gujarat, Gas pipeline
from Bangalore /Ennore
Value Unlocking : Andhra Pradesh
6





Population : 4.94 crores
Coastline : 972 km , Second longest
in India, next to Gujarat
Gross State Domestic Product
(GSDP) :
Rs. 2,35,930 Cr
(US$39 billion) in 2012-13
Industries : IT, Boitech, Pharma, Oil &
gas, Power, Banking & Financial,
Tourism, Textiles, Retail, Leather
Oil & Gas : Oil & Gas reserves (KG
Basin) Refinery, Petroleum Import,
pipelines, Gas Based IPPS
Value Unlocking : Telengana
7





Population : 3.52 crores
Mineral-rich state, with coal
reserves
at
Singaerni
Collieries
Gross State Domestic Product
(GSDP) : Rs. 3,35,018 Cr in
2012-13
Industries : IT, Boitech, Tourism
Power : Coal, Hydel based
8
Introduction of APGDC
APGDC – An Introduction
9



APGDC Limited incorporated on 10.01.2011 by APGIC
Equity Structure: APGIC :50% ; GAIL Gas : 50% with each to
offload 25% to Private/Public Investors
 APGIC : Joint Venture of APIIC with 51% and APGENCO
with 49%
 GAIL Gas : Wholly owned subsidiary of GAIL (I) Ltd.
 Authorized capital is Rs. 100 Crores and paid up as on date
is Rs. 20 Crores. APGIC and GAIL Gas paid Rs. 10 Crores
each.
Objectives and Business Plan, as developed through KPMG:
Development of Natural Gas regional pipeline grid across the
state of AP; City Gas Distribution to cover various Major cities
of AP.; and creation of LNG infrastructure in the East Coast for
import of Gas, etc.
APGDC – An Introduction
Vision
10

Objective :
 To
Design , Develop and
construct Gas pipeline and gas
distribution
systems,
Gas
processing, Liquefaction, Regasification plants and to import,
store,
process,
transport,
distribute natural gas


To develop gas distribution
networks in the state of Andhra
Pradesh
To Source natural Gas : through
import or domestic
To be the leader in sourcing,
transporting and distributing
natural gas in Andhra Pradesh ,
and beyond by maximizing
value creation for all
stakeholders in an
environmentally sustainable
manner.
Mission
Making Andhra Pradesh
a Natural Gas driven
economy
MOU with Govt of A.P.
11
MOU signed between APGDC and GOAP during
Partnership Summit, 14 Jan, 2012




To lay Dedicated natural gas pipeline from Kakinada to
Vishakhapatnam
To lay regional pipeline grid
GOAP would facilitate permissions and clearances
MOU Signed between GAIL Gas / APGDC and GOAP
during Partnership Summit, 14 Jan, 2012



To set up of FSRU and On land terminal through APGDC.
GOAP would facilitate permissions and clearances
12



Division of A.P. State : Value unlocking in Oil & Gas
Sector
Introduction of APGDC
Transmission & Distribution Infrastructure :
Existing Pipelines
 Transmission & Distribution Infrastructure
 Unified AP Gas grid






Oil and Gas production infrastructure
LNG Import facilities
Refineries & LPG Pipelines
Oil & Gas Infrastructure : Key enabler of growth
Key drivers and Challenges
India : NG Vs Total Energy trend
13
700
52.9
600
56.7
46.3

595

55.3
46.7
500
36.1
400
28.7
26.6
32.1
37.2
33.5
300
200
320.8
345.1
366.8
390
420.1
446.5
483.8
510.2
534.6
573.3
100

0
2003
2004
2005
Share of Natural
gas in the Energy
Basket : 24 %
2006
2007
Natural Gas (in Mtoe)
Total Energy (Mtoe)
2008
2009
2010
2011
2012
2013
There is marginal
decline in 2013
Share of Natural
Gas is in increasing
trend in longer term
Data Source : B P Statistical Review 2014
Natural Gas Consumption
14


Share of Natural
gas consumption
as part of total
primary energy :
Slow but steady
growth
Natural
Gas
consumption
is
sizable
and
significant role in
longer term
Gas as % of Total Energy
12.00
11.11
10.34
10.00
8.00
9.65
8.29
8.32
8.75
8.59
8.59
9.23
8.33
7.78
6.00
4.00
2.00
0.00
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Data Source : B P Statistical Review 2014
A.P. natural gas demand: salient features

Market Study and Business Plan
completed by M/s KPMG:




Existing shortfall:13.6 MMSCMD
Additional prospective demand (in
existing plants): 12.4 MMSCMD
Due to drastic reduction in
domestic gas production, huge
Investments made by power
plants threatened to become
stranded assets
Power is the first customer base in
AP:


Affordability of RLNG is a key issue,
Pipeline connectivity required to
mitigate the risk of power shortage.
Existing Demand (in MMSCMD)
Sector
Contract
ed qty.
Supply
GAP
Fertilizer
Power
CGD
Ceramics, Glass,
Steel, and Others
Total
3.3
14.0
0.10
2.6
2.8
0.11
0.7
12.2
-
0.9
0.2
0.7
18.3
5.7
13.6
Future Demand (in MMSCMD)
Sector
Require
GAP
ment
Fertilizer (RLNG )
5.4
5.4
Power
10.0
3.0 *
CGD
2.0
2.0
Others
2.0
2.0
Total
19.4
12.4 15
Gas Distribution Infrastructure
16
To Bhilwara
To Ankot (Gujarat)
Gangavaram
Kakinada
Offshore Gas fields
(RIL, ONGC, Cairn, GSPL)
GAIL KG Basin Network
Krishnapatnam
ENPL
Ennore
Legends:
GAIL KG Network:
EWPL (RGTIL) :
MVPL (under const):
P/l under bidding :
LNG Terminals planned:
Gas Fields :
Gas Pipelines
17
S no.
Name of the P/L
From – To
Capacity
(MMSCMD)
Status
15
Existing
1
GAIL KG Basin
Network
Kakinada- Rajahmundry
– Vijayawada
2
East West Pipeline
(EWPL)
Kakinada – Gujarat
80-120
Existing
3
Mallavaram Bhilwara
pipeline (MBVPL)
Kakinada – Bhilwara
57
Under
Implementatio
n
4
Kakinada Srikakulam
pipeline and EnnoreNellore pipeline
Kakinada to Srikakulam
further to Haldia &
Ennore to Nellore further
to vijayawada
20
Under
Implementatio
n
5
Ennore Nellore
Ennore - Nellore
36
Awarded
6
Vijaywada - Nellore
Viajywada – Nellore
10-15
Proposed
18
Andhra Pradesh Gas Grid
19




Objective : to transform economy of
A.P. To gas based economy
Srikakulam
APGDC
has
made
demand
assessment and feasibility studies
across the state through M/s KPMG
V’nagaram
Anakapalli
R’mundry Tuni
V’wada
Kakinada
Expression of interest (EOI) to PNGRB, on
behalf of the GoAP , for following
sections :

Kakinada Srikakulam

Ennore Nellore Pipeline

Nellore Vijaywada pipeline
APGDC has emerged as successful
bidder and has been authorized by
PNGRB to lay pipeline from Kakinada
to Srikakulam
Vizag
Guntur
Ongole
Nellor
e
Renigunta
DBPL
GAIL P/L
EWPL (RGTIL)
APGDC Authorized P/L
P/L under biding
EOI Proposed
Existing CNG locations
Proposed CNG Locations
Salient Details of KSPL
20

From Kakinada to Srikakulam

Total length : 301 km ( Main Line )


Sources :

Kakinada LNG

Gangavaram LNG

KG Basin ONGC/ RIL KG D-6 /
Ravva fields.
Demand Centres:

KG Basin, Kakinada SEZ, MBBVPL,
EWPL

Visakhapatnam, PCPIR

Vizyanagram, Bobbilee Ind. Area

Srikakulam
AUTHORIZATION BY PNGRB
21

Bid invited by PNGRB:
20th June, 2013

Letter of Intent issued :
05th June, 2014

Performance Bank Guarantee:
Rs. 10.13 crore

Letter of Authorization Issued :
16th July, 2014

Now Open for booking of capacity by Consumers/ Customers
Project Implementation schedule
Critical Path :
22
S
no.
Activity
1
Authorization by PNGRB
2
Detail Route Survey
3
ROU, Land & Permissions
4
Process Design & Proj.
Engg.
5
Ordering
6
Manufacturing &
Delivery
7
Contracting
8
Construction
9
Testing & Commissioning
Sep-14
3
Dec-14 Mar- Jun-15 Sep-15 Dec 15 Mar-16 Jun-16 Sep-16 Dec 16 Mar-17 Jun-17
15
6
9
12
15
18
21
24
27
30
33
36
Andhra Pradesh Gas Grid: An early Imperative
23
Srikakulam

V’nagaram
Anakapalli
Vizag
R’mundry Tuni
V’wada
Kakinada
Guntur
Karnool

Ongole

Anantpur
Nellore
Renigunta
Chitoor
DBPL
GAIL P/L
EWPL (RGTIL)
APGDC Authorized P/L
P/L under biding
EOI Proposed
Gas Sources/ Inputs:

Gas Sources/ Inputs:

Existing:
KG Basin

Proposed : Kakinada,
Gangavaram,
Krishnapatnam,
Ennore, DBPL
Gas Grid to Cover
all 13 districts of A.P.
Approx. Length :
1600 km
Approx. Investment :
4200 Cr.
A. P. Gas Grid
24
S no.
Sector
Approx.
Length (km)
Approx
Investment
(Rs. Cr)
Design Gas
flow
(MMSCMD)
Gas
Transportati
on Tariff
(Rs./
MMBTU)
1
Kakinada Srikakulam
300
800
65-90
4.5- 6
2
Kakinada –
Vijaywada
250
(existing)
Existing
10-15
5.6
3
Vijaywada –
Nellore
300
800
15
7-10
4
Nellore - Ennore
300
730
36
8-11
5
Hindupur – Anantpur 400
– Karnool
1000
10
10-12
6
Hindulpur Renigunta
800
10
8-10
300
Infrastructure Investment & Financial
viability
25


Investment in Order of magnitude Cost : Rs. 4200
crore
Schedule :
 Immediate
: Kakinada – Srikakulam , Vijaywada –
Nellore , Ennore – Nellore
 Next 3-5 years : Anantpur – Karnool- Renigunta


Linked with Gas availability, Landed cost
Transportation Cost : 5- 15 Rs./ MMBTU , Nominal
compared to gas cost
Gas Distribution : CGD and CNG
26


Existing CGD :

Kakinada

Rajahmundry

Vijaywada
Srikakulam
V’nagaram
Anakapalli
R’mundry Tuni
V’wada
Kakinada
Proposed CGD and CNGS
:

Vizag

Viajayanagaram

Srikakulam

Guntur

Ongole

Nellore

Renigunta
Vizag
Guntur
Ongole
Nellor
e
Renigunta
DBPL
GAIL P/L
EWPL (RGTIL)
APGDC Authorized P/L
P/L under biding
EOI Proposed
Existing CNG locations
Proposed CNG Locations
Telengana: Gas Infrastructure
27

2 Major Gas grids
passing through the
state:



MBVBPL
EWPL
City Gas Distribution
and CNG stations


VSPL (LPG)
EWPL(RIL) , MBVBPL
(GSPL)
Ramgundam : Gas based
Fertlizer
Currently at Hyderabad
Notified for bidding :
Nalgonda, Khamam,
Medak Rangareddy
28









Division of A.P. State : Value unlocking in Oil & Gas
Sector
Introduction of APGDC
Transmission & Distribution Infrastructure
Oil and Gas production infrastructure
LNG Import facilities
Refineries & LPG Pipelines
Oil & Gas Infrastructure : Key enabler of growth
Supports from State Govts and Central Govt.
Key drivers and Challenges
Proved reserve of Natural Gas: India
29


Production in 2013 :33.7 Billion Cu m
equivalent to average of 92.3
MMSCMD
Reserve to production ratio of 40.2, vsa-vis world average of 55.1
Production (BCM)
60
50.8
50
46.1
40
30
39.2
29.5
29.2
29.6
29.3
30.1
30.5
40.3
33.7
20
10
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Data Source : India Pet & NG statistics 2012-13
Oil & Gas Production
30
Srikakulam

Krishna Godavari Basin
in Andhra Pradesh :




Oil and Gas
Discoveries
Onshore and Offshore
Production by Private
and Govt Companies
More exploration in
progress
V’nagaram
Anakapalli
Vizag
R’mundry Tuni
V’wada
Kakinada
Guntur
Ongole
Machlipatnam
Nellore
Renigunta
DBPL
Krishnapatnam
KG Basin : Exploration & Discoveries
31


More than 225
prospects
have
been probed by
drilling of more
than
557
exploratory wells.
Hydrocarbon
accumulations
have been proven
in 75 of these
prospects

Oil : 22

Gas : 53
Source : DGH
Oil & Gas discovery in KG Basin
32
Onshore

141 prospects have been
probed
by
375
exploratory
wells
by
ONGC,



11 oil & gas pools
31 gas pools have been
discovered
Most of them are on
production.
Offshore:


84 prospects have been probed by 182
exploratory wells .
Hydrocarbon accumulations
proved in 33 :



have
been
11 oil & gas and 22 gas prospects
3 discovery by ONGC in the block KG-DWN98/2 within Plio-Pleistocene sandstone of
Godavari formation and
About 19 discoveries have been made by
Pvt./JV companies so far in NELP blocks

15 Dhirubhai discoveries by RIL in blocks KGDWN-98/3 and KG-OSN-2001/2,

3 discoveries by Cairn Energy Pty. Ltd. (CEIL)
in block KG-DWN-98/2 within Mio-Pliocene,

1discovery by GSPC in block KG-OSN2001/3 within Lower Cretaceous).
33








Division of A.P. State : Value unlocking in Oil & Gas
Sector
Introduction of APGDC
Transmission & Distribution Infrastructure
Oil and Gas production infrastructure
LNG Import facilities
Refineries & LPG Pipelines
Oil & Gas Infrastructure : Key enabler of growth
Key drivers and Challenges
LNG Projects in East India
34
Digha
Paradip
Gangavaram
Kakinada
Krishnapatanam
Ennore
FSRU based :

Kakinada (2 nos.)

Krishnapatanam

Paradip

Digha

Karaikal
Land based terminal:
FSRU (In progress)
Karaikal
LNG Terminals
planned in East Coast:
FSRU (Planned)
Land based LNG terminal

Gangavaram

Ennore
LNG Import in East Coast : Advantage
20
1.49
15
LNG Import on the East Coast
$/MMBTU
5.47
20.36
10
13.41
5
0
FOB Price &
Other
Taxes
Transportation
Total Cost
In case the LNG Import facility is located
on the East Coast in AP, then the delivered
price will be lower at least by 4 US Dollar
due to the avoidance of additional taxes
and transportation charges
LNG un loaded on the West Coast & delivered in AP
Therefore, an LNG Import facility on the
east coast can meet the demand shortfall
economically when compared to the RLNG
terminals on the West coast
18
16
2.03
$/MMBTU
14
0.40
12
10
8
6
15.68
14.00
4
2
0
FOB Price &
Other
Taxes
Transportation
Total Cost
LNG un loaded in East coast & delivered in AP
 Further, towards open access of
terminal, power plants can make high sea
purchase, where tax component becomes
nil, and no customs duty, thereby making
more viable
Kakinada FSRU : Project Layout
36
Onshore
Receipt
Facility
Offshore
Pipeline
Widening of
Channel
Existing Channel
Break Water
Fishing
harbor
K
D
W
P
FSRU Basin
FSRU : Configuration vis-à-vis Jetty ,
FSRU
Jetty
LNG Carrier
PLL LNG Terminal
38




land based Liquified Natural Gas (LNG) Terminal at
Gangavaram Port
Petronet LNG Limited (PLL) signed a firm and binding
term sheet with Gangavaram Port
Initial capacity of 5.0 MMTPA expandable to 10
MMTPA
MoEF Environmental Clearance ObtainedSchedule : 4-5
Years
PLL LNG Terminal
39

Close to Vizag Market- but
no gas based Industry at
present

Breakwater : does not exist
for Isolated LNG berth

Availability : Dedicated LNG
berth, if made outside
harbour is operable only for
250 days.

Land availability : Adequate
land not available. Area to
be re-claimed from sea and
hill cutting involved

Pipeline Connectivity : None
40








Division of A.P. State : Value unlocking in Oil & Gas
Sector
Introduction of APGDC
Transmission & Distribution Infrastructure
Oil and Gas production infrastructure
LNG Import facilities
Refineries & Product / LPG Pipelines
Oil & Gas Infrastructure : Key enabler of growth
Key drivers and Challenges
Refineries & Product/LPG Pipelines
41



Machlipatnam


Existing Refinery
Planned Refinery & pet.chem
LPG/ Prduduct P/L Corridor
PCPIR
Vizag Refinery (HPCL)

Capacity 8.3 MMTPA

Petrol, HSD, LPG, FO, lubricants
VSPL LPG Pipeline (GAIL : 600
Km, 1.4 MTPA
VVSPL Product P/L (HPCL)
Bottling Plant, POL Terminals
(OMCs) – Vizag, V’wada,
S’bad
Proposed :

Refinery & Petrochem :
Machlipatnam

PCPIR – Viazg - Kakinada
42








Division of A.P. State : Value unlocking in Oil & Gas
Sector
Introduction of APGDC
Transmission & Distribution Infrastructure
Oil and Gas production infrastructure
LNG Import facilities
Refineries & LPG Pipelines
Oil & Gas Infrastructure : Key enabler of growth
Key drivers and Challenges
Oil & Gas Infra : Key enabler to
Industries
43


Oil & Gas
Infrastruct
ure





Fertilizer
Power
Petrochemicals
City Gas Distribution
CNG & Transportation
Ceramics, Glass
Other Industries
Oil & Gas Infra : Key enabler to
Industries
44






Should be efficient and cost
effective
Available
Affordable
Environment friendly
Sustainable
To meet Govt Priorities
Oil & Gas
Infrastructu
re : Key
Characteris
tics
45








Division of A.P. State : Value unlocking in Oil & Gas
Sector
Introduction of APGDC
Transmission & Distribution Infrastructure
Oil and Gas production infrastructure
LNG Import facilities
Refineries & LPG Pipelines
Oil & Gas Infrastructure : Key enabler of growth
Key drivers and Challenges
Key Drivers for Oil & Gas Infrastructure
46




Industry and market Demands
Moderate and sustainable Crude and LNG price regime in
International Market
Private sector participation and FDI
Govt Facilitation:




Approvals
Land availability and acquisition ease
Taxation regime – Equitable to gas sector and long term growth
oriented
Allocation / allotment of domestic gas to local / State Govt
Key Challenges
47




Higher prevailing LNG pricing : impediment to import
Power Plants : Power tariff capped- hence gas price
has to be competitive
Huge initial Capital Investment
PNGRB Bidding in gas pipelines : Assymatry ,
unhealthy competition
48
Thank You

similar documents