CORPORATE PROFILE

PETRONET LNG LIMITED

May, 2014
 OVERVIEW

 Global & India’s Primary Energy Consumption Scenario

 India’s Gas Scenario, Infrastructure

 Role of LNG in India

 About Petronet’s

 Dahej & Kochi Terminals

 New Initiatives
 Performance
6%

PRIMARY ENERGY CONSUMPTION (mtoe) - WORLD

Year 2005
6% 1%
Fuel 2005 % 2012 % 6% Oil

Gas
Oil 3901 36 4130 33 36%
Coal
28%
Nuclear
Gas 2501 23 2987 24
Hydro

Coal 2982 28 3730 30 23%

Renewables

Nuclear 627 6 560 4 Year 2012

7% 2% Oil
Hydro 662 6 831 7 4%
Gas

Renewable 33% Coal

84 1 237 2
s
Nuclear
30%
Total 10708 100 12477 100
Hydro

24% Renewables
Source : BP Statistical Review-June 2013
 PRIMARY ENERGY CONSUMPTION (mtoe) - INDIA

Year 2005
6% 1% 1%
Fuel 2005 % 2012 % Oil

Gas
Oil 120 33 172 31 33%
Coal

Gas 32 9 49 9 50%
Nuclear

Hydro
Coal 184 50 298 53 9% Renewables

Nuclear 4 1 7.5 1
4% 2% Year 2012
1% Oil
Hydro 22 6 26 4
Gas
Renewables 2.0 1 11 2 31%
Coal

Total 367 100 563 100 53%

Nuclear
9%
Hydro
Source : BP Statistical Review-June 2013
Renewables
 INDIA – A MAJOR GAS/LNG CONSUMER
 13th largest gas consumer – 55 bcm (~149 mmscmd)
 4th largest LNG importer – 20.5 bcm (~55 mmscmd)
 Economy growing at CAGR of about 6% with similar growth in Energy Consumption
 Share of Natural Gas in Indian Energy basket to increase from 9% to 20% by 2025
 Despite increase in domestic gas production- dependency on imported gas to increase
substantially
 Pipeline network- developing into a national grid- needs to grow faster, connecting new
markets

SECTOR WISE PROJECTED GAS DEMAND

Gas Demand (mmscmd) 2012-13 2013-14 2014-15 2015-16 2016-17 2019-20

Power 86 104 122 139 157 202

Fertilizer 60 60 60 72 97 106

City Gas 15 16 17 18 22 36

Industrial 20 20 22 25 27 35
Petchem/Refinerie
s/Internal
Consumption 38 40 42 44 47 54

Sponge Iron/Steel 7 8 8 8 8 10
Total Realistic
Demand 227 248 272 307 358 443

Source : Vision 2030, Natural Gas Infrastructure in India

 CURRENT GAS DEMAND &
DOMESTIC SUPPLY SCENARIO
1000
Demand Domestic Supply (25.3)
900 713
(mmscmd) (bcf/day) (22.2)
625
800

700 (15.7)

600 442
(12.7)

500 (10.9) 358

400 (9.6)
(8.8) 307
(8.0) 272
300 248
227 211.79 231.42

200 156.7 172.2

102.5 111.26 120.63 (8.2)
101.1 (7.5)
100 (5.6) (6.1)
(3.6) (3.6) (3.9) (4.3)
0
2012-13 2013-14 2014-15 2015-16 2016-17 2019-20 2026-27 2029-30

Source : Vision 2030, Natural Gas Infrastructure in India

 LARGE DEMAND BUT SENSITIVE TO PRICE
PETRONET ANALYSIS-2013
Petronet Analysis 2013
Gas demand and supply, 2016 358
mmscmd, at customer gate prices 55
85 275 303
228
28
143
32 47 202
119 147
53 72
40

156 156 156 156

103
1 2 3 4
2012 year Price of Low Price of Medium Price of High Price of Potential
end $19-20/ $16-17/ $13-14/ $11-12 demand,
consumption mmbtu mmbtu mmbtu mmbtu 2015

Sectors ▪ Industries ▪ Refineries ▪ Peaking ▪ Base load

with ▪ CNG ▪ Industries power power
demand transport ▪ New plants
fertilizer
plants
Imports
Domestic supplies
Prices at Crude of $ 110/Bbl

Source: Vision 2030. / PLL analysis

 Existing P/L Network : 13000 KMS (330 MMSCMD)
Proposed additional P/L Network :
13500 KMS (330 MMSCMD) by 2016-17

Mundra

Ennore

India Shipping Summit 2013

 LNG IN INDIA

 “Vision 2030, Natural Gas Infrastructure in India” envisaged

a GDP growth of 6%
 Current GDP growth of about 5-6% translate into overall
energy demand growth at CAGR of 6-7%
 Given India’s growing energy requirements & unlikelihood of
matching increase in the domestic supplies, despite some
significant oil & gas finds recently, the import dependence is
only going to accentuate sharply in the coming years
 LNG Regas Capacities
 Presently, India’s LNG import capacity around 23.0 mmtpa
through 4 terminals & meeting more than 35% of total
gas supply of the country
 PETRONET LNG LIMITED

 Incorporated on April 2, 1998

 Authorized Capital US$240 Million, Paid up capital US$150 Million

 Commencement of Commercial Operations - April, 2004

 Equity
 50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL )
 10% held by GDFI (part of GDF SUEZ)
 5.20% ADB

Public
34.8% (IOCL, GAIL,

BPCL, ONGC)
50%

ADB GDFI
5.2% 10%
 TOWARDS THE VISION

Vision Business Strategy

To be a key energy provider to the nation

by leveraging unique position in the LNG  Create and manage world-class
value-chain with international presence LNG infrastructure
 Continue excellence in LNG
Revenue grew 32% (All Values in US$ Million) business
EBITDA growth 13%
- Focus on higher capacity
Revenue EBIDTA
utilization and better
7000
6291 operational efficiencies
5827
6000 - Diversify LNG sources
5000 4539  Diversify business
4000
- Wind Farm
- City-gas distribution/ direct
2639
3000
2130 marketing
2000
1311
1686
- Air Separation Unit
1102
1000 137 184 196 257 383 408 - Solid cargo port at Dahej
189 264
0
 Maintain highest standards of
business ethics
 DAHEJ LNG TERMINAL

 Located at West Coast, State of Gujarat in the Gulf of

Cambay
 Commencement of Operations in 2004
 Capacity (mmtpa) : 5.0 10.0 15.0
(2004) (2009) (2016)
 Truck Loading facility can handle 3000 loadings/ yr.
 LNG Cargoes unloaded : 1200+ cargoes
 Capacity expansion to 15 mmtpa
 Second Jetty : Commissioned in April., 2014
 EPC Award : Storage Tanks Contract & Regas
(Regas & Storage Capacity) Contract Awarded
Scheduled Completion by
November 2016
 Expanded Capacity sold to GAIL, GSPC, IOCL & BPCL
DAHEJ PLANT FACILITY

13
DAHEJ SECOND JETTY
SATELLITE LNG HUB & LNG BY ROAD

LNG BY ROAD VAPORISATION

FACILITIES

SATELLITE HUB
KOCHI PLANT OVERVIEW
 KOCHI LNG TERMINAL

 LNG Terminal located in Special Economic Zone with Co-

developer status

 Capacity 5.0 mmtpa

 Tied up 1.44 mmtpa LNG from Exxon Mobil’s Gorgon Project

 Time Charter Party for 4th vessel selected

 Kochi terminal commissioned in September, 2013

 Truck loading facility available

 Currently operating at very low capacity in absence of pipelines

connecting Bangalore & Mangalore markets
 KOCHI - FACILITIES
KOCHI - FACILITIES

18
 KOCHI PIPELINES

MANGALORE
BANGALORE
KASARGOD 1 6
KRISHNAGIRI

KANNUR 2

SALEM
KOZHIKODE
PHASE-I CUSTOMERS 3 TIRUPPUR
ERODE
a. FACT, Udyogmandal
b. KOOTTANAD
BSES, Kochi (Reliance Energy) COIMBATORE
c. BPCL, Kochi 5
d. KSEB, Brahmapuram FACT 1 4
e. FACT-II, Kalamssery b
f. TCC d
KOCHI c PHASE-II CUSTOMERS IN KERALA
States: 03 FACT 2
1. Kasargod power plant
Districts:17 f
2. Western India plywoods Kannur
3. Kottakkal Aryavaidya sala, Kottakal
LEGEND
CUSTOMER LOCATION 4. Indsil & Precoat mills, Palghat
KKBMPL PHASE – I NTPC, 5. Apollo Tyres, Perambra
KKBMPL PHASE – II KAYAMKULAM 6. Cheemeni power plant, Kasargod
KOCHI-KAYAMKULAM PL
No decision Delayed Completed
19
 THIRD TERMINAL AT EAST COAST

 Proposed Capacity: 10 mmtpa

 Initial Capacity : 5 mmtpa

 Location: Gangavaram, Andhra
Pradesh
 DFR, FEED and various other pre-

project activities completed along

with obtaining of clearances Gangavaram

 Estd. Project cost: 1.2 Billion USD

 GANGAVARAM TERMINAL

 LNG terminal to be developed as SPV with GPL as partner

 MOEF has accorded Environmental and CRZ Clearance

 5 mmtpa onshore terminal proposed to be commissioned in

2017

 Facilities to include 2 Storage tanks, marine & regasification

facilities

 To commence earlier supplies, FSRU option being examined

through which supplies can commence in 2016

 Understanding reached for connectivity with East West &

Mallavaram-Bhilwara pipelines
GANGAVARAM

Proposed
land for
plant
sitting

Proposed
berth
location
 DIRECT MARKETING
 Petronet exploring opportunities to supply LNG to Coastal area
consumers through small LNG Vessels in India and
neighbouring countries
 Direct Marketing by focusing on the following areas:

 Signed HOAs & supplied RLNG to bulk end consumers in

Power, Refineries & Fertilizers Sectors

 LNG/LCNG supplies through Trucks, to LNG hubs, Satellite

Stations at customer’s premises in regions not serviced by
pipelines under the Brand name of
 PERFORMANCE GRAPH

Sales/ Service TBTU Net Worth USD Million

600 900
548 824 831
524
494 800
500
704
440 700
400
400
600
536
322 321
290 500
300 447
247 397
400
324
200
300 255
125 214
100 200 176

100
0
0
31.03.05 31.03.06 31.03.07 31.03.08 31.03.09 31.03.10 31.03.11 31.03.12 31.03.13 31.03.14
 PERFORMANCE GRAPH

Turnover USD Million PAT USD Million

250
7000

6291
212 213
6000 5827
200

5000
4539
150

124
4000 119
104
100 95
3000 81
2639
63
2130
2000 50 39
1686
1311
1102
1000 767
0
389
-6
0
2004-052005-062006-072007-082008-092009-102010-11 2011-12 2012 - 2013-14
-50
13
 FINANCIAL PARAMETERS

Market Price USD

3.50
3.00 3.02
2.50 2.46 2.40
2.00 2.22
1.46 1.64
1.50 1.24
1.00
0.92 0.94 0.80
0.50 0.54
0.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Current

Year EPS (USD) P/E D/E

2006-07 0.08 23.99 1.08
2007-08 0.13 11.15 0.97
2008-09 0.14 11.62 1.15
2009-10 0.11 5.75 1.12
2010-11 0.17 15.19 1.20
2011-12 0.28 9.29 0.93
2012-13 0.31 8.83 0.68
2013-14 0.16 14.75 0.66
 PERFORMANCE BASED ON EMPLOYEE PARAMETERS

2013-14* 2012-13 2011-12 2010-11

No. of Employees 427 397 309 276
Turnover/ employees (USD Million) 14.73 14.65 14.80 9.76
Profit Before Tax / Employee (USD 0.27 0.8 1.02 0.67
Million)
Employee Remuneration cost* (as % 6.55% 3.22% 2.83% 3.37%
of Profit)

* As on 31.03.2014
A Snapshot of Manpower Statistics
Location Skill Set Others
Corporate: 94 Professional : 93 Average Age: 34 (48% employees in
31-40 years age)
Dahej : 202 Technical : 295 69% are Technical & 22% professional
Kochi : 131 Office Support : 37 Average years of association of
employees with Company 5 years
 Attrition rate: 2013-14 * : 9.36 %
 Training & Development : 6.89 Mandays / Employee
 A JOURNEY TOWARDS SUCCESS …

PLL International Rating

Moody's Investors Baa3
 Ratings & Ranking:
(sovereign)
Service • Moody International Rating Baa3
PLL Domestic Rating & Ranking
• Rated AA+ by Fitch and ICRA rating
AA+ Agencies
• 36th rank in ET (2012-13)
AA+
• 37th rank Fortune India 500 (2012-13)
37 • 150th Largest Company & 301th most
2012-13
Profitable Company in Plimsoll Global
29 Analysis on Global Crude Oil & Gas
2012-13 Extraction Industry ranking
2012-13
36
• Letter of Appreciation for maintaining
low methane emission footprint at
109
2012-13
Dahej facility from United State
Environmental Protection Agency
27
2012-13
 CSR – PARTNERING WITH COMMUNITY – DAHEJ
 Participative community development programmes with State Govt in Luvara & Lakhigam villages
Health & Sanitation
 Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage/solar street
lights.
 Preventive and Social medicine aids (includes Primary Health Centre & Ambulance).
Education and Employment generation programs
 Sponsored laboratory to facilitate science stream education in the nearby school, Dahej.
 Inauguration of Petronet LNG Centre for Vocational Rehabilitation.
 Indirect employment for local villagers in the area of Housekeeping & Horticulture.
Community Development
 Renovation of personal facility & fencing at Panchayat office of Luvara Village, Gujarat.
 Participation in Govt. Devp. Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre
 Massive mangrove plantation to cover 1000 hectares by 2015-16 in consultation with Gujarat Ecology
Commission/Forest Department.
 Constructing of canteen at Government Hospital, Bharuch.
 CSR – PARTNERING WITH COMMUNITY - KOCHI
 Developing Infrastructure Facilities for displaced persons at RMP Todu Canal –
Kalamukhi Junction Rehabilitation Area in Puthuvypeen
 Sponsored the distribution of books and other study material to nearly 70 schools of
the area benefitting 22,000 students.
 Conducted Eye Screening & Cataract Operation & Dental Camp for Puthuvypeen
& neighboring villages
 Sponsoring of local events like boat race, cultural and sports events in schools
 Sponsor purchase of school bus for Kerala Blind School.
 Concreting & metalling of roads, side protection & repair/construction of culverts,
footpaths in Puthuvypeen village
 Installation of Solar powered high mask lights in Puthuvypeen
Thank You