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GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS Moscow, - - PowerPoint PPT Presentation
GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS Moscow, - - PowerPoint PPT Presentation
GAZPROM IN EASTERN RUSSIA, ENTRY INTO ASIA-PACIFIC MARKETS Moscow, June 16, 2015 Development of Resources and Production Capacities in Eastern Russia 2 Future Development of Eastern Gas Program Power of Siberia 3 Gazprom Groups Gas
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Future Development of Eastern Gas Program
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Power of Siberia
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Gazprom Group’s Gas Business Growth in Asia-Pacific
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Gazprom Group’s priority in Asia-Pacific is to increase its share in this market by ramping up LNG supplies and developing pipeline gas exports
eastern route western route Sakhalin II Vladivostok LNG Sakhalin II 3rd process train
Key Asia-Pacific markets’ demand for LNG and pipeline gas imports* Ratio between prices of LNG supplies to Asia and oil & gas indexation in different external scenarios**
* Source: consensus forecasts of Wood Mackenzie, IHS Energy, IEA, CEDIGAZ, SIA Energy, CNPC, Chinese Ministry of Land and Resources, Indonesian Agency for Assessment and Application of Technology ** Analysis takes into account two price scenarios for Henry Hub index based on NERA forecasts (USD 3 / mln BTU and USD 5 / mln BTU), as well as various levels of costs for liquefaction process based on expert assessment of various prices in contracts concluded in 2014. It is assumed that prices of LNG supplies to Asia-Pacific (DES) are oil-based at level of 14.85% Brent
Natural gas supply routes from Russia
existing LNG supplies prospective LNG projects existing LNG projects existing contracts for pipeline gas supplies existing import terminals prospective import terminals prospective LNG supplies Price range of LNG (DES Asia) linked to Henry Hub index Price range of LNG (DES Asia) linked to oil prospective contracts for pipeline gas supplies
China Japan South Korea Taiwan Philippines Vietnam Thailand Malaysia Singapore Indonesia
6 8 10 12 14 16 18 При цене на нефть от 90 до 110 долл. США / баррель При цене на нефть от 60 до 80 долл. США / баррель USD / mln BTU
Oil prices vary from USD 90 to 110 per bbl Oil prices vary from USD 60 to 80 per bbl
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LNG supplies 15% Pipeline gas supplies from Central Asia 15% Pipeline gas supplies from Myanmar 2% Gas production in China 68%
Natural Gas Supplies to China
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Natural gas supplies to China will help Gazprom diversify natural gas exports and facilitate gas transmission network expansion in Eastern Russia
May 21, 2014 Gazprom and CNPC signed Purchase and Sale Agreement for natural gas supply from Russia to China via eastern route. Supply volumes – 38 bln m3, timeframe – 30 years May 8, 2015 Gazprom and CNPC signed Heads of Agreement for pipeline gas supply from Russia to China via western route. Estimated supply volumes – 30 bln m3, timeframe – 30 years
Western route Eastern route Forecast gas supply in Chinese market* 2014 2030
* Source: Chinese General Administration of Customs; consensus forecasts of Chinese National Development and Reform Commission, Energy Information Administration under US Department of Energy, forecasts of IHS Energy, CEDIGAZ, SIA Energy and CNPC LNG supplies 10% Gas pipeline supplies from Central Asia 10% Gas pipeline supplies from Myanmar 2% Gas pipeline supplies from Russia 11% Gas production in China 67%
eastern route western route
Shanghai Beijing Main export routes of Russian natural gas to China
India Mongolia Russia
China
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Gazprom Group’s LNG Supplies to Asia-Pacific Markets
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Gazprom Group’s LNG plants and supply routes in 2005-2014
Asia-Pacific is Gazprom Group’s major LNG sales market. Up to 60% of total LNG volume from Group’s subsidiaries were supplied to Asia-Pacific in 2014.
Russia; 44% Nigeria; 16% Egypt; 8% Spain, Belgium, Netherlands and other LNG re-exporters; 10% UAE; 5% Trinidad & Tobago; 4% Qatar; 3% Oman; 3% Others; 8%
Gazprom Group’s projects in Asia-Pacific
Vladivostok LNG 10 mln t (expected) Sakhalin II 3rd process train 5 mln t (expected) Sakhalin II 10 mln t
Gazprom Group’s LNG Portfolio Growth in 2014
Basic Terms and Conditions signed to supply liquefied natural gas in amount of 2.9 mln t during 20 years from Yamal LNG project. Sales and Purchase Agreement signed on January 22, 2015. Mid-term deals signed to supply LNG to TEPCO and RWE from Gazprom Group’s portfolio. Long-term contract to annually supply 2.5 mln t of LNG to GAIL (India) came into effect. Contract with Yamal Trade Contracts with TEPCO and RWE Contract with GAIL Expanding LNG fleet Two newly built & hi-tech LNG tankers – Velikiy Novgorod and Pskov – added to Group’s LNG fleet.
Japan South Korea China India Taiwan Malasya Thailand Argentina UK Other DES FOB supplies
1 2 3 4 5 6 bln m3 LNG plant in operation Design phase 30 cargos out of them – supplied to Asia-Pacific. Number of cargos supplied in 2014 more than doubled compared to 2013. 52 LNG cargos supplied Design phase
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- Provision of equitable tax treatment for offshore projects in northern
and southern parts of Sea of Okhotsk,
- Severance tax and export customs duty incentives for oil produced
from oil rims of Far East and Eastern Siberia fields,
- Property tax exemption for onshore process facilities and
hydrocarbons shipping terminals used by offshore field development projects.
Critical State Support Measures for Projects of Eastern Gas Program
Tax incentives: 7
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Price Formation Process
Gazprom believes that gas prices for newly gasified Russian regions, including Russia’s East, should be set with due account of:
- level of return on investments channeled into local gas sector and projected load
- f gas pipelines;
- cost of fuel substituted by gas in substitution point within gasified area;
- confirmed solvent gas demand of end consumers;
- possibilities for funding or other measures of state support to consumers and
regions;
- singling out export-oriented production segments into separate category of