The IGU And PETRONAS Role in Gas - · PDF fileThe IGU And PETRONAS Role in Gas By : ......

0Malaysian Gas Association

IPLOCA Annual ConventionIPLOCA Annual ConventionSydney (1Sydney (1--5 October 2007)5 October 2007)

The IGU And PETRONAS Role in GasThe IGU And PETRONAS Role in Gas

By :

Ho Sook WahMD/CEO PETRONAS Management Training Sdn. Bhd.

Vice-Chairman, Coordination Committee, International Gas Union (IGU)

4 October 2007

http://www.igu.org/


Table of content Table of content

Overview of the International Gas Union (IGU)Overview of the International Gas Union (IGU)

The current IGU triennium 2006 The current IGU triennium 2006 –– 2009 2009

Outlook for Malaysian triennium 2009 Outlook for Malaysian triennium 2009 –– 20122012

Role of PETRONAS in the Gas BusinessRole of PETRONAS in the Gas Business


IGU represents around 95% of all gas sales worldwide IGU represents around 95% of all gas sales worldwide ……..

Members Non Members

69 Chartermembers(68 countries)

28 Associate members

Gas Companies can become member and benefit from IGU’s vast networking possibilities ….


IGUIGU’’s activities covers the entire gas chains activities covers the entire gas chain……

E.g.. Of Study Groups in the 2006 – 2009 Triennium

Storage Distribution UtilisationTransport

&Transmission

E&P

Underground Gas Storage (UGS) Database

UGS Technology Improvements

Intelligent UGS (iUGS)

Industrial utilisation

Domestic & commercial utilisation

Natural Gas Vehicle (NGV)

Remaining conventional world gas resources and technological challenges for their development

Difficult reservoirs and unconventional natural gas resources

Impact of regulation on gas transmission, safety and security of supply

Review of new technologies in pipeline and construction monitoring

Contribution of gas transmission to climate protection and sustainable development

Review of Asset Management strategies & practices

Review of leakage reduction strategies & practices

Development of best practices for the prevention of third party interference damage to distribution assets


…… as well as strategic areas related to gas that impacts as well as strategic areas related to gas that impacts IGUIGU’’s image in the worlds image in the world

E.g.. Of Study Groups in the 2006 – 2009 Triennium

Sustainable Development

Strategy, Economic & Regulation

DevelopingMarkets LNG

Evolution, expansion & promotion of IGU’s Guiding Principles on Sustainable Development & Climate Change

Gas industry response to climate change: Greenhouse gases (GHG) reduction case studies

Supply & Demand to 2030

Gas Price Formation & trends

Regulation & Future Industry Structure

South West & Central Asia

South America

South Eastern Europe

LNG quality & inter-changeability

LNG contract clauses for more flexible global LNG markets

Remote & offshore LNG facilities


How does IGU promotes gas How does IGU promotes gas ……. ?. ?

9 Technical Committees with Study Groups

Task Forces e.g. Research and Development

The World Gas Conference every 3 years

Organiser of IGU Gas Research Conference (IGRC)Next conference in Paris in October 2008

Co-sponsor of LNG conferenceLNG-15, recently held in Barcelona from 24-27 April 2007

Liaison with UN and other international energy organisations






Role of PETRONAS in the Global LNG BusinessRole of PETRONAS in the Global LNG Business


President

CC SecretaryCC Vice Chairman

Roberto BrandtArgentina

Ernesto Lopez AnadónArgentina

Andres KiddArgentina

CC Chairman

Secretary GeneralPeter StormDenmark

Vice President Datuk Rahim HashimMalaysia

Ho Sook WahMalaysia

WOC 2Storage

VladimirOnderka

Czech Rep.

WOC 3Transmission

HelgeWolf

Germany

TFR&D

PGC CDeveloping

Markets

Mohd. FaridAmin

Malaysia

PGC BStrategy,

Economics& Regulation

Pedro Moraleda

Spain

PGC DLNG

SeiichiUchinoJapan

WOC 4Distribution

JeremyBending

UK

PGC ASustainable

Development

WOC 1Exploration

& Production

VladimirYakushev

Russia

WOC 5Utilisation

JeanSchweitzerDenmark

MarcFloretteFrance

TFGas MarketIntegration

JorgeDoumanianArgentina

Knut BarlandNorway

Gas experts from all over the world are represented in Gas experts from all over the world are represented in the IGU the IGU ……


The current triennium is under the Argentine Presidency, The current triennium is under the Argentine Presidency, (2006 (2006 –– 2009)2009)

24th World Gas Conference in October 2009, in Buenos Aires, Argentina

ThemeThe global energy challenge: “Reviewing the strategies for natural gas“

MissionIncrease the value to the membership:1. promote the exchange of knowledge and

information2. provide solid and concrete reference tools for

decision makers


Reviewing the strategies for natural gas towards 2030

Develop a prospective analysis of the key drivers for the next 25 years

1. The Global Energy Challenge

The Triennial Work Programme (TWP) is based on three strategic guidelines ….


Guideline no. 2 focuses on a technical and operational Guideline no. 2 focuses on a technical and operational perspective perspective ……

Analyse short term intricacies of supply from a more technical and operational perspective along the entire supply chain

2. Contribution of the natural gas industry in terms of security of supply, safety and environment


…… increasing gas market integration makes it increasing gas market integration makes it more competitivemore competitive……!!

Support a healthy investment and business climate and high–quality dialogue between governmental and corporate players

3. Regional gas market integration as a key driver for sustainable economic growth


The Work The Work ProgrammeProgramme is being implemented by the 9 is being implemented by the 9 IGU Standing Committees 2006 IGU Standing Committees 2006 -- 20092009

All IGU Members can nominate representatives to the IGU Committees

Some 500 Leaders and experts from the gas industry world-wide are currently participating in the work of IGU in this Triennium.


Triennial Work Programme (Triennial Work Programme (TWPTWP)) →→ Now Now 2288 Topics / Topics / Study GroupsStudy Groups

Group Study Group 1 Study Group 2 Study Group 3

WOC1 Conventional resources Unconventional resources

Gas utilisation efficiency indicators

TF R&D Role and structure of R&D within the gas industry /IGRC

WOC2 UGS database UGS technology improvements

Intelligent UGS

WOC3 Impact of regulation New technologies Contribution to SD

WOC4 Asset management Leakage reduction 3rd party damage

Industrial Domestic & commercial Transport (NGV)WOC5

PGCA Guidelines on SD GHG reduction case studies Post Kyoto concept

PGCB Supply & demand Price formation and trendsNatural gas industry outlook to 2030

Regulation & future industry structure

PGCC SW & Central Asia South America SE Europe

PGCD LNG quality & inter-changeability

LNG contracting flexibility Creative solutions for new LNG facilities

TF GMI Key success factors to favour regional energy and gas market integration

Malaysian Gas Association

LA RURAL – Buenos AiresWGC 2009 Congress & Exhibition venue

Malaysian Gas Association

WGC 2009 – Web Pagewww.wgc2009.com

http://www.wgc2009.com/


2525thth World Gas ConferenceWorld Gas Conference

4-8 June 2012Kuala Lumpur, MalaysiaTheme : ???Strategic Guidelines : ???


Works have already started towards positioning Malaysia Works have already started towards positioning Malaysia for the IGU Presidency 2009 for the IGU Presidency 2009 –– 2012 2012 ……

1st workshop was held in Kuala Lumpur in August 2006 to formulate possible theme and strategic guidelines

Internal perspectives

2nd workshop was held on 20-21 August 2007 in Putrajaya to review and finalise the theme and strategic guidelines

Regional stakeholders will be involved• Australia, Japan, Korea, Singapore,

Thailand, Indonesia, India

Panel Discussion on “The Prospects of Gas for Asia - Issues, Challenges and Opportunities”


Key trends and challenges for gas industry foreseen in the Key trends and challenges for gas industry foreseen in the triennium 2009triennium 2009--2012 were identified during the workshop2012 were identified during the workshop

More use of gas – utilisation for economic developmentDifficulty for accessConvergence of gas marketGas interest moving to AsiaGrowing global demandCompeting fuel sources from non-hydrocarbon resourcesResources (gas) owners will be major playersGlobalisationConservation of energy utilisation : EfficiencySufficient gas vs. diversification (coal & nuclear)

Depleting resourcesMonetisation of stranded gas – Technology– Accessibility due to Geo-PoliticsCompetition from coal, nuclear and renewablesHow best to tackle Geopolitical issuesHow best to utilise gasHow to internationalise gas market

TRENDSTRENDSTRENDS CHALLENGESCHALLENGESCHALLENGES


The Strategic Guidelines during Malaysian Presidency will The Strategic Guidelines during Malaysian Presidency will try to address the rising trends and challenges to the gas try to address the rising trends and challenges to the gas industry going forward industry going forward ……

Possible Strategic Guidelines under consideration

Global and regional role on Natural Gas for sustainable economicdevelopment and environmentImproving availability of resources and access to markets through technology and collaborationsEnhancing the utilisation and efficiency throughout the gas value chainPromoting capability development for the gas industryBalancing the needs of all stakeholders throughout the gas valuechainMaximising gas efficiency throughout the gas value chain leveraging on technology, regulation and gas pricing.Efficient use of resources for the development of gas focusing on human capital and finance.The concept of peak gas: availability constraint


National oil company of Malaysia

Exclusive rights to petroleum resources in Malaysia

Operates as a company / business entity

Fully integrated multinational oil and gas company

Business interests in more than 30 countries worldwide

PETRONASPETRONAS’’ Corporate ProfileCorporate Profile


PETRONAS PETRONAS –– An Integrated Petroleum CompanyAn Integrated Petroleum Company

PETROCHEMICAL

PETRONAS is a fully integrated petroleum company involved in exploration & production, refining, gas processing and transmission, gas liquefaction, manufacturing of petrochemical products, marketing and trading, and integrated logistics.

EXPLORATION &PRODUCTION

CONDENSATES

PROCESSING

LIQUEFACTION LNG

REFINING

CRUDE OIL

MARKETING FACILITIES

PETROLEUM PRODUCTS

LPG

SALES GAS

FERTILISERS

LNG

OIL

GAS

AROMATICS


PETRONASPETRONAS’’ continue to improve its position among the continue to improve its position among the Fortune Global 500 companiesFortune Global 500 companies

Source : Fortune 500 July 2007, Profit refers to Profit after tax.

USD

bill

ion

FORTUNE GLOBAL 500FORTUNE GLOBAL 500

• BY PROFITS

2007 2006

8 8

• RETURN ON REVENUE 1 1

• RETURN ON ASSETS 4 3

PETROLEUM REFINING INDUSTRYPETROLEUM REFINING INDUSTRY

2007 2006

• PROFITS 18 15

PETRONAS RANKINGSPETRONAS RANKINGS

• REVENUES 121121 120

• RETURN ON REVENUE 8 6

39.5

25.4

22.0

17.115.5 14.7

13.2 12.8 12.8 11.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0


Currently PETRONAS has interests in more than 30 Currently PETRONAS has interests in more than 30 countries worldwidecountries worldwide

UpstreamAlgeriaAngolaBeninCubaEquatorial GuineaEthiopiaIranMauritaniaMoroccoMyanmarMozambiqueNigerPakistanTurkmenistanYemen

ChadCameroonEgyptIndonesia

UPSTREAM& DOWNSTREAM

PhilippinesSudanVietnamMalaysia

Australia ArgentinaCambodiaChina

IndiaSouth AfricaThailandUnited Kingdom

DOWNSTREAM


PETRONAS PETRONAS –– Develops the gas reserves from E&P activities to Develops the gas reserves from E&P activities to realiserealise its value for the benefit of the nationits value for the benefit of the nation

Gas Processing

Plants

LiquefactionLNG Export

LPG

Extraction

Butane Export

PropaneExport

Ethane

Methane

Condensate

Refineries

NGV

Power

Industries

Gas District Cooling

Households

Transport

Industries

Households

Petrochemical

Feedstock


PETRONAS LNG Complex is currently the worldPETRONAS LNG Complex is currently the world’’s largest s largest LNG producing complex at a single location LNG producing complex at a single location 23.3. MTPA23.3. MTPA

Atlantic Basin -Spot

Cargo

Future Markets

Bintulu

Taiwan (49%)

Korea (21%) Japan (25%)MLNG Sdn. BhdStartup : 1983No. of Trains : 3Production Capacity (MTPA) : 8.1

MLNG Dua Sdn. BhdStartup : 1995No. of Trains : 3Production Capacity (MTPA) : 7.8

MLNG Tiga Sdn. BhdStartup : 2003No. of Trains : 2Production Capacity (MTPA) : 7.4


LNG Shipping Capability LNG Shipping Capability –– WorldWorld’’s largest owner and s largest owner and operator of LNG fleetoperator of LNG fleet

Currently, PETRONAS through it’s subsidiary MISC has 24 LNG ships making it the world’s largest owner and operator of LNG fleet (11% of global fleet)

With 5 more LNG tankers being constructed and scheduled to be delivered, PETRONAS will own 29 LNG vessels of various sizes by 2009 (1.8 MTPA total capacity)

PETRONAS is a reputable and reliable LNG supplier, with total delivery of more than 4,000 LNG cargoes to its customers since 1983.


PETRONAS : A Global LNG PlayerPETRONAS : A Global LNG PlayerMilford Haven, UKMilford Haven, UK

• Regas Facility• Startup : 2007• Production Capacity : 4.4 MTPA

ALTCOALTCO

• ASEAN LNG Trading Company (ALTCO)

• Established July 2003• LNG trading

GreenfieldIn OperationLNG Trading Company

Pars LNG, IranPars LNG, Iran

• Startup : 20011/12• Production Capacity : 8.0 MTPA

Egyptian LNGEgyptian LNG

• Startup : 2005• Production Capacity : 7.2 MPA

Star Energy, UKStar Energy, UK

• Gas storage facility


PETRONAS PETRONAS –– Develop our gas reserves from E&P activities to Develop our gas reserves from E&P activities to realiserealise its value for the benefit of the nationits value for the benefit of the nation

PGU Projects

Phase 1 - 1984Phase 2 - 1992Phase 3 - 1997JDA - 2005

PRAI

PORT KLANGCONNAUGHT BRIDGE

SERDANG

PORT DICKSONMELAKA

P. GUDANGSENOKO

SEV / GB3

KUANTAN

SEGAMAT

JERNEH(1992)

KUALA LUMPUR

LAWIT(1997)

BEKOK

THAILAND

JDA(2005)

West Natuna ‘B’(Indonesia -2002)

PM-3(2003)

ANGSI (2002)

GELUGOR

TTPC

PAKA

SONGKHLA

BINTANG (2003)

RESAK(2000)

GPPs KERTIH

DUYONG (1984)

New connections (West Natuna ‘B’ and JDA)PGU Loop

Imported Gas56

500500

19981999

GPP

1234

CAPACITY(mmscfd)

250250250250

GAS-IN

1984199219921994

TOTAL INVESTMENT = RM 26 BILLION


PETRONAS: PETRONAS: MonetisationMonetisation of Gas Reserves of Gas Reserves –– Offshore SabahOffshore Sabah

KIMANIS

To MLNG

Sabah Oil and Gas Terminal (SOGT)

Sabah Onshore Gas Terminal (SBGAST)


Development of the TranDevelopment of the Tran--ASEAN gas pipelines infrastructureASEAN gas pipelines infrastructure

INDONESIA

PHILIPPINES

VIETNAM

THAILAND

LAOS

CAMBODIA

MYANMAR

Existing Gas Pipeline

Work in Progress/Planned Gas Pipeline

LEGEND

Cross-Border Pipeline

Planned Cross-Border Gas Pipeline Interconnection

7 New Likely TAGP Interconnections

MALAYSIABRUNEI DARUSSALAM

SINGAPORE

TOTAL BILATERALCONNECTION

Approx 2300 km


3rd Asian Pipeline Conference and Exhibition

We welcome IPLOCA members to visit Malaysia during the Asian Pipeline Conference and Exhibition which will be held from 21-22 November 2007 in Kuala Lumpur.Third conference in our series organised by the ASCOPE Gas Centre.Highlights include:

Developments of the Trans-ASEAN Gas PipelineUpdates of pipeline projects in Vietnam, Thailand and SumatraPipeline Integrity ManagementNew Technology and materials


ThankThankYouYou

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