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The International Gas Union (IGU), April 5, 2017 /PRNewswire/ -

2016 Global LNG trade jumps 5% to set new record for third consecutive year, as LNG
comes to the fore as a fuel of choice

The latest report highlights the dynamic 2016 experienced by the global LNG industry - with
significant growth in LNG supply projects, as well as increases in demand for LNG as a fuel
from new and existing markets across the globe.
Global LNG trade in 2016 reached a record 258 million
tonnes (MT) - an increase of 5% from 2015

This increase compared with the average 0.5% growth


rate of the previous four years is dramatic.
The most pronounced increase in demand comes from
Asian markets, with China's LNG consumption
increasing dramatically by roughly 35% to 27 million
tonnes per annum (MTPA).

On the flip-side, some markets - including Japan and


South Korea as the two largest - have shown signs of
satiation as other forms of energy come to the fore.

This was particularly prevalent in Brazil, where a


resurgence in hydro power has reduced demand for
LNG by 80%.

In Indian Power sector alone a resurgence in coal


based power reduced demand by more than 50%
In 2016 global liquefaction capacity reached 339.7
MTPA - building on the 2015 measurement of 301.5
MTPA

This growth includes new projects such as Sabine Pass


LNG, as well as Gorgon LNG and Australia Pacific LNG.

Global liquefaction capacity is expected to grow


significantly over the next few years, with 114.6 MTPA
of capacity under construction as of January 2017.
More Gas is floating around !
Global energy consumption, 2015
Indian Gas Market
An Overview
P/L Infra-
structure

Cross
LNG
border P/Ls
receiving
& Domestic
Terminals
Gas

Market
Pricing
Demand
India Gas Sector Infrastructure !!

NANGAL

BHATINDA

DELHI
BAREILLY
GURGAUN
AURAIYA LUCKNOW
MATHANIA AGRA DISPUR
JAGDISHPUR
DAHEJ I & II BARMER KANPUR
GWALIOR PATNA
10 mmtpa* PHOOLPUR
KOTA JHANSI GAYA AGARTALA
VARANASI LNG
UJJAIN VIJAYPUR
RAJKOT BOKARO
BHOPAL Existing
AHMEDABAD
KOLKATA
HAZIRA BHARUCH
BARODA
CUTTACK Upcoming
3.6 mmtpa SURAT DAMRA Damra
5mmtpa Transmission Pipelines
BHUBANESHWAR
MUMBAI PUNE
Existing
RAJAMUNDRY KRISHNAPATNAM
DABHOL SOLAPUR KAKINADA GAILs Planned Pipeline
KAKINADA
5 mmtpa KOLHAPUR HYDERABAD 5 mmtpa RILs East West Pipeline
VIJAYAWADA Planned Pipeline
GOA
NELLORE GSPCs Planned Pipeline
ENNORE
HASAN
BANGLORE
5 mmtpa
City Gas/ CNG
CHENNAI
MANGLORE Existing
Planned
KANJIKKOD TIRUCHCHIRAPALLI LNG Terminal
COIMBTORE

KOCHI
TUTICORIN
5 mmtpa

INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET


Gas Pipelines Existing as on 30.09.2016
LNG Receipt Terminals- Proposed

JAMMU

NANGAL
Amristar
Ludhiana
PARWANOO
BHATINDA
DELHI
SRI
GANGANAGAR KASHIPUR
HISSAR DADRI
JHAJJAR
AONLA
CHAINSA
NEEMRANA
IPI PIPELINE JAISALMER JAIPUR AGRA AURAIYA
BHUTAN
CONNETIVITY DHOLPUR
JAGDISHPUR
AJMER GUWAHATI
JODHPUR MALANPUR
BETIAH
KOTA PHULPUR
VARANASI
BONGAIGOAN IMPHAL Assam &
PATNA BARAUNI
ANTA Tripura
MEHSANA GAYA
BANGLADESH
KANDLA VIJAIPUR AIZAWL
KHERA BOKARO
AHMD DURGAPUR
DEWAS BHOPAL RANCHI
JAMNAGAR GANDHAR PITAMPUR
JHABUA
ROURKELA

RAIPUR JAMSHEDPUR HALDIA


DAHEJ BARODA
NORTH / SOUTH
HAZIRA NAGPUR ANGUL KALINGANAGAR
GUJARAT NETWORK
CUTTACK
PARADIP HVJ / DVPL / GREP NETWORK
MUMBAI AHMEDNAGAR DUPL / DPPL NETWORK
RAMAGUNDAM
PUNE
VIZAG REGIONAL PIPELINES
DABHOL HYDERABAD
DVPL/GREP UPGRADATION
KOLHAPUR
KAKINADA CHAINSA JHAJJAR HISSAR PIPELINE
GADAG VIJAYAWADA
DADRI-BAWANA-NANGAL PIPELINE
GOA
JAGDISHPUR HALDIA PIPELINE
BANGALORE
DABHOL- BANGALORE PIPELINE
KOCHI-KANJIRRKOD-BANGALORE-
CHENNAI
MANGALORE PIPELINE
COIMBATORE
OTHER PLAYERS PIPELINES AND
KANJIRKKOD PROPOSED PIPLINES

KOCHI
KAYAMKULAM TUTICORIN
Gas Pipelines under Execution / Construction as on 30.09.2016
Infrastructure - LNG imports regas capacity

Existing LNG Terminals


1 2 4
3

Dahej Hazira Dabhol Kochi LNG terminals


Petronet
Ownership Petronet LNG Shell, Total GAIL, NTPC
LNG Open to FDI 100%
Capacity
(MMTPA)
10 5 1.5 5
Regas Charges fixed by the Operator
Expansions
(MMTPA)
15 (by 2017) 10 (by 2017) 5 (by 2018) 10 (2017-22)

Planned LNG Terminals1 Owner / promoter free to tie up


5 Ennore 6 Mundra 7 Damra 8 Kakinada
terminal capacity except 25%
APGDC,
capacity mandated as open access
Ownership IOCL, TIDCO GSPC, Adani Adani
SHELL, GDF
Capacity
(MMTPA)
5 5 5 5
Planned
Dates

1) Source: Ministry of Petroleum & Natural Gas


Demand
/supply
India
70
TREND OF NATURAL GAS CONSUMPTION IN INDIA - BCM

60 58.93
56.58
52.65

50 48.79
46.04 46.71 46.62
45.32

40.83 41.17
40 37.90 37.61
35.80
34.35

30 28.98
26.77 26.97 27.06 26.78
25.31

21.31
20
17.73 18.54
15.41 14.44
12.89
10.93 11.82
10 10.54
9.03

0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
b) Sale by Producing Companies c) Total Consumption (Net Sale + LNG Import)3 LNG import
Gas Demand Estimates - XII plan projections
12th Five year Plan (Figures in MMSCMD)
2012-13 2013-14 2014-15 2015-16 2016-17
Power* 135 153 171 189 207
Fertilizer** 62 110 113 113 113
Demand(Price Elastic) -
Sub Total 197 263 284 302 320
City Gas*** 15 19 24 39 46
Industrial*** 20 20 22 25 27
Petrochemicals /
Refineries / Internal
Consumption*** 54 61 67 72 72

Sponge Iron / Steel*** 7 8 8 8 8

Demand(Relatively price
Inelastic) - Sub Total 96 108 121 144 153
Grand Total Demand 293 371 405 446 473
Source: MOP(*), MOF(**), (***) Report of the Sub Group on Demand Estimates for petroleum products-12th & 13th Plan
NG Demand Projections for 2016/17
mmscmd
Actual
Supply XI Plan 2016/17 2016
Sector 2010 (P) (E*) (October)

Fertilizers 43 79.36 95.0 42.36


230-
Power 71 148.38 260.0 31.2
City Gas 9 15.83 31.0 20.8
Industrial 16 21.96 45.0 1.8
Petrochemical /
Refineries /
Internal
Consumption 20 23.25 38.0 40.1
Sponge Iron /
Steel 6 7.86 12.0 3.2
Total 166 300.6 481.0 139.46
Gas in Power
sector
Gas for power sector
Approx. 80 MMSCMD
Gas Users
Mandate
CGDs to Use
Biomethane
Mandate NG
to replace
diesel in
non-transport
sector
Price
Current Scenario NG Pricing!

Price levels
$2.5-$5.6 $4-$6 $8-$9 $10-$12

Domestic Gas
Qatar Gas

Spot

Bio -Methane

Mid Term

# Shale Gas (Henry Hub) (2018)- $ 10-$12


Long
44
Term # TAPI (2018)- $10- $12
Price
Key attributes
for the energy
supply

Visibility
Stability
Thank you
Current Scenario NG Pricing!

Price levels

$3-$6.1 $7-$8 $8-$10 $10-$12 $12 & more*

Domestic Gas
Qatar Gas

Spot

Bio -Methane

Mid Term

# Shale Gas (Henry Hub) (2018)- $ 11-$12


Long
50
Term # TAPI (2018)- $10- $12