Gas Infrastructure Development: Mr. Pitak Janyapong Executive Vice - - PowerPoint PPT Presentation

Gas Infrastructure Development:

• Mr. Pitak Janyapong

Executive Vice President, Strategic Planning Department Gas Business Unit, PTT Public Company Limited January 29, 2015

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I. ASEAN GAS OUTLOOK

• II. NATURAL GAS DEVELOPMENT & OUTLOOK IN THAILAND
• III. THAILAND INFRASTRUCTURE EXPANSION STRATEGY

SECURITY , RELIABILITY & FLEXIBILITY ASEAN INLAND LNG HUB

• IV. CONCLUSION

agenda

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At present, ASEAN is a net exporter of natural gas, but in the future, it might become a net importer

5,000 10,000 15,000 20,000 25,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Brunei Cambodia Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam Gas Production

(MMSCFD)

SOURCE: Wood Mackenzie (2014)

2013 Net Gas Export = 5,672 MMSCFD 2013 Total Production = 19,009 MMSCFD 2030 Total Demand = 21,540 MMSCFD 2030 Net Gas Import = 80 MMSCFD 2030 Total Production = 21,460 MMSCFD 2013 Total Demand = 13,337 MMSCFD

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GAS

Unit : MMSCFD

864 3,466 1,035 370 216 3,216 3,857 312 864 2,249 370 1,247 5,678 7,312 1,287 2,746 4,893 1,585 498 405 4,273 6,640 70 429 2,245 1,563 183 2,013 6,086 7,118 877 1,375

Production Consumption Brunei Cambodia Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam Net Export Net Export

• 2013

2030

Net Export Net Export

• Net Export

Net Export Net Export Net Export Self Producer Net Import Net Import Net Import Net Import Self Producer Brunei Cambodia Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam Net Export Net Import Net Import

Today, Thailand already consume more natural gas than they can produce

Total Production = 19,009 Consumption = 13,337 Net Export = 5,672 Total Production = 21,460 Consumption = 21,540 Net Import = 80

SOURCE: Wood Mackenzie (2014)

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Natural Gas Development

Natural gas in Thailand is an valuable resource, it is a clean energy and a petrochemical feedstock to value added. As a result, demand for gas has grown rapidly with continued expansion of infrastructure

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

Power GSP NGV

GSP 1 Nampong P/L GSP 2 GSP 3 Myanmar P/L GSP 5

MMscfd

2nd P/L GSP 4

6,000 5,000 4,000 3,000 2,000 1,000

ESP & GSP 6 LNG Terminal

Industry

3rd P/L 1st P/L 4th P/L Provincial P/L NGV

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Natural Gas Value Chain:

Value are maximized to the sourced natural gas

C2 (Ethane) C3 & C4 (LPG) C5+ (NGL) C1 (Methane) C3 (Propane)

Fiber & Textiles Automobile Construction Electrical & Electronic Agriculture & Others

Power Industry NGV (CNG)

C3 & C4 (LPG)

DEMAND

Petrochemical Feedstock

GSP 1-6 & ESP

SUPPLY

N.G. N.G. N.G. C1 (Methane)

“To reduce import and increase energy efficiency”

Gulf of Thailand Myanmar Onshore LNG

Packaging

“Value Added”

LPG for household & transport

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A Strong Demand Growth Outlook

Source : PTT

1,000 2,000 3,000 4,000 5,000 6,000 7,000 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029

Power GSP Industry

78% 21% 8%

2,635

14% 13% 12% 58% 67%

Gas demand forecast (CAGR during 2014-2030) : Total ~2% : Power ~3% : GSP ~-2% : Industry ~2% : NGV ~3%

14%

NGV

8% 7%

6,462 MMscfd 4,800

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Infrastructure expansion: to helps strengthen country security of supply

Yadana Zawtika Yetagun

BVW#1 RA#6 RPCL TECO RGCO NBK SBK EPEC WN GLOW IPT

Nakhon Sawan

REGGO BPK GPG

Pipeline Network

• New Onshore Pipeline (5th P/L)
• Looping East-West to increase

security of network

LNG Receiving Facilities

• To accommodate

growing import

• f LNG

Creating a loop,

enhancing gas network Security, Reliability & Flexibiity

GSP KHANOM ERAWAN LNG

1 2

FSRU

• Construct FSRU in the

Gulf of Thailand to supply gas to Khanom and Chana

CHANA

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FSRU

• Construct FSRU in

Myanmar to strengthen gas supply from Myanmar

FSRU,

increase security of supply both the western and southern part of Thailand

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Fourth Transmission Pipeline

• 42-inch diameter pipeline
• Approximately 300 kilometers

Provincial Pipeline to Nakorn Sawan

• 28-inch diameter pipeline
• Approximately 210 kilometers

Provincial Pipeline to Nakorn Ratchasrima

• 28-inch diameter pipeline
• Approximately 160 kilometers

Infrastructure Expansion: Pipeline Networks

1

Fifth Transmission Pipeline

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Infrastructure Expansion: LNG Receiving Terminal 1 - Phase II

2

Phase 1 Phase 2 Regasification Unit 5 MTPA 5 MTPA Jetty

• No. of Berth
• Maximum Size of Carrier (m3)

1 264,000 1 264,000 LNG Full Containment Storage Tank (m3) 160,000 X 2 160,000 X 2 Expected completion 2011 2017 E

Phase II Map Ta Phut

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Floating Storage Regasification Unit (FSRU)

• Short Lead time (Construction 1-3 Years)1
• Relative lower cost2
• Unit deployed offshore
• Lower reliability due to weather down time

On shore LNG Receiving Terminal

• Long lead time (Construction 3-5 Years)1
• Relative higher cost 2
• Land acquisition

Infrastructure Expansion: New Terminal

• Note:
• 1. Construction time does not included EIA study period
• 2. At regas capacity 3 mtpa

Option 1 Option 2

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2

Infrastructure Expansion: Option 1 – LNG Receiving Terminal 2

New On-shore LNG Receiving Terminal:

• 2nd LNG Receiving

Terminal to accommodate import LNG higher than 10 MTPA

• Diversify LNG receiving

location

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FSRU (Floating Storage and Regasification Unit):

Supply Southern Part of Thailand to increase security

• f supply

Infrastructure Expansion: Option 2 - FSRU

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CHANA POWER PLANT

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Thailand: Asean Energy Hub

• 1. Supply LNG as

alternative fuel

• f Diesel
• 2. Construct LNG

station MY and ID supply natural gas to Asean Thailand as a Center

• f inland LNG Supply

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Upstream Look for investment for

• perator or

non-operator with partners Liquefaction Invest in Projects with LNG equity lifting (N.A., East Africa project) Shale Gas Development in N.A. Shipping

Invest with strategic partner

in shipping business

Supporting global LNG

portfolio (LNG Trading portfolio) Regasification Gas Distribution Invest in LNG receiving terminal in other countries Downstream of LNG business value chain : LNG satellite

Explore Opportunity to Invest in LNG Value Chain

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Conclusion:

Natural gas still the fuel for choice and Thailand will..

be a center of inland LNG supply strengthen its Infrastructure to increase Security, Reliability & Flexibility