Prod oducer Consum er Coop ooperation tow ow ards Develo - PowerPoint PPT Presentation

Prod oducer Consum er Coop ooperation tow ow ards Develo lopin ing LNG Market in in A Asia ( Strategic ic r regula latio ions a and polic licie ies in T Thaila iland) International Convention Center “Pamir” H. H.E.General Ana nant ntaporn Grand Prince Hotel New Kan anjanar Takanawa, Japan arat at 18 O 8 October 2017 17 Min inis ister o of Energy, T Thaila iland

Tha hailand nd Inte tegrate ted Ene nergy B Blue ueprint nt ( TIEB) Ga Gas Pla lan Ob Objectives 1 ) 1 ) Econ onom om y - Mitigate impact from rising gas cost from LNG import via price signaling to contain gas demand - Ensure fair pricing of Gas/LPG for Thai people and businesses 2) S Securit ity - Maximize domestic gas production - Ensure effective and efficient LNG sourcing - Assure sufficient 2 coverage and access

Today’s ’s Sit ituatio ion Demand and supply evolution - BAU Today’s situation Bcf/d 7.5 BAU demand 7.0  Thailand relies 6.5 heavily on gas (e.g. 6.0 70% of power Additional cost generated using 5.5 ~110 Bn in 2020 by using gas) 5.0 THB 1 LNG instead of Supply- 4.5 GOT gas  Domestic demand Myanmar production will soon 4.0 gap pipe imports decline at a rapid to be filled 3.5 pace JDA by LNG 3.0 (or new  Thailand will 2.5 nearby increasingly rely on 2.0 sources) high-cost LNG 1.5 imports, causing the Domestic production 1.0 energy costs to (existing basins) shoot up 0.5 0 2014 16 18 20 22 24 26 28 30 32 34 2036 Assuming price difference of 5 $/mmbtu between LNG and Gulf of Thailand (GOT) gas; 1 $ = 33 THB 3 Source: Department of Mineral Fuels (DMF)

Gas Plan 201 015 ( ( 201 2015 2036) • Gas as P Plan an Upda date ted i in Dec ecem em ber er 2016 20 • Approv oved by y The N Nat ational al E Energy y Poli licy Council ( il ( NEPC) Gas from the he G Gul ulf o of T Tha hailand 201 01 201 01 201 01 202 02 202 02 202 02 202 02 202 02 202 02 202 02 202 02 202 02 202 02 203 03 203 03 203 03 203 03 203 03 203 03 203 03 6201 2017 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 4

LNG NG Receiv ivin ing Facilit ilitie ies In T Thaila iland T 1 phase 2 Approv ov ed ed T-3 T-4 New LNG Terminal (N/ A) T 1 phase 1 Approv ov FSRU F-3 ed ed FSRU F-1 F-3 T-2 T-1 T-1 ext. ext. FSRU Myanmar Extend Map Ta Phut Terminal By 2027 (1.5 MTPA) by 2019 Approv ov F-1 ed ed FSRU (5 MTPA) T-2 by 2024 LNG Receiving Terminal (7.5 MTPA) by 2022 F-2 Approved FSRU Songkla FSRU F-2 (2 MTPA) by 2028 5 5

Pip ipelin line - netw orking a and Infrastruc uctur ure  TPA to GSP and pipelines will ensure that existing infrastructure can be utilized in the most F efficient manner LNG TERMINAL  In addition to the expansion of the Map Ta Phut LNG terminal, PTT is conducting a feasibility for construction LNG NG distrib ibutio ion/receiv iving Remark : Ref. The National Energy Policy Council term inal in M n Myanm nm ar (NEPC) on 8 th December 2016 6 ( annual capacity of 10 10

Dem and nd vs vs S Sup upply of Thaila iland L LNG LNG NG de dem and w will Million tons per year approxim ately be 35 35 MTPA i in 2036 36 PETRONAS 1.2 2 MT MTPA BP 1 MT MTPA Shell 1 l 1 MTPA MT Qatar 2 Qa 2 201 201 201 201 202 202 202 202 202 202 202 202 202 202 203 203 203 203 203 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 MTPA MT Ca Case LNG Term in inal C l Capacit ity rev evised ed I ( 2016) 6) Current nt L LNG L Long ng Te Term C Contract • Qatar 2 2 MT MTPA • Shell ll 1 1 7 MT MTPA

The B Balancing of of Thaila iland L LNG P Portfolio lio Reason Re Energy able le Secu curi Pric ice ty 100% % Thir ird Party ty Ac Access 8

Thaila iland L LNG Portfolio lio No Non-Lon ong Te Term ( (30%) Long Te Term (70%) %) 9

Thaila iland LNG NG i im por orted volu lum e Asia ian Spot pr price Year Ye Cargo Ca LNG ( ( To Ton) ($/MMB MMBtu) 201 011 11 11 708 08,136 36 14 14.59 59 2012 012 14 14 973 73,239 39 15 15.22 22 201 013 18 18 1,409 09,46 463 16 16.23 23 201 014 17 17 1,342 42,94 948 14 14.89 89 201 015 31 31 2,621 21,59 599 7.80 80 20 (Long 20 te term ) 2,005, 5,647 47 11 ( (S pot) 61 615, 5,952 52 2016 20 32 32 2,900 00,38 386 5. 5.58 58 22 ( 2 (Long Re Remark : Term rminal T Tari riff no not inc. c. term ) te 2,014 14,67 674 LNG i im por orted f from om 1 12 10 ( (Spot ot) 885 85,712 12 cou ountries Russia France Pacific/ Atlantic Egypt Middle Qatar East Oman Malaysia Yemen Nigeria Trinidad Equatorial I ndonesia Guinea Peru Australia 10 10

Tha hank nk Y Y