Presentation is loading. Please wait.

Presentation is loading. Please wait.

A.P. Gas Distribution Corporation (A Joint Venture of APGIC and GAIL Gas Limited) Vizag 20 September 2014 Infrastructure, Petroleum and Gas : Key Enabler.

Similar presentations


Presentation on theme: "A.P. Gas Distribution Corporation (A Joint Venture of APGIC and GAIL Gas Limited) Vizag 20 September 2014 Infrastructure, Petroleum and Gas : Key Enabler."— Presentation transcript:

1 A.P. Gas Distribution Corporation (A Joint Venture of APGIC and GAIL Gas Limited) Vizag 20 September 2014 Infrastructure, Petroleum and Gas : Key Enabler for successor states

2 Objectives of the session 2  Opportunities for establishing infrastructure facilities  Developing petroleum and gas corridors  Infrastructure as pre-requisite for industrial growth and economic activities  PPP model: Pros & cons

3 Disclaimer 3 The following presentation and views are for information purpose only and are express personal opinion of the speaker. These are not endorsed by GAIL, APGDC or GoAP. Audience may independently verify before taking action and speaker does not held any responsibility for accuracy of information contained therein.

4 Presentation Outline 4  Successor States: Value unlocking in Oil & Gas Sector  Introduction of APGDC  Transmission & Distribution Infrastructure  Oil and Gas production infrastructure  LNG Import facilities  Refineries & Product / LPG Pipelines  Oil & Gas Infrastructure : Key enabler of growth  Key drivers and Challenges

5 Value unlocking in Oil & Gas Sector 5 Successor States  Specific priorities in individual states  Focussed Industrial development  Decentralization – towards inclusive growth  Deeper focus in Oil & Gas in A.P. : production, import, Distribution & export to other states  Telengana : Acts as consumption centre as well as transit corridor  Paradigm change & New Synergy with other states : New product pipeline (from Paradip), power transmission from Gujarat, Gas pipeline from Bangalore /Ennore To Bhilwara To Ankot (Gujarat) EWPL (RGTIL) MBVPL (GITL) GAIL KG Basin Network ENPL Ennore Krishnapatnam Gangavaram Kakinada Legends: GAIL KG Network: EWPL (RGTIL) : MVPL (under const): P/l under bidding : LNG Terminals planned: Gas Fields : Dhabol Bangaore (GAIL) Offshore Gas fields (RIL, ONGC, Cairn, GSPL)

6 Value Unlocking : Andhra Pradesh 6  Population : 4.94 crores  Coastline : 972 km, Second longest in India, next to Gujarat  Gross State Domestic Product (GSDP) : Rs. 2,35,930 Cr (US$39 billion) in  Industries : IT, Boitech, Pharma, Oil & gas, Power, Banking & Financial, Tourism, Textiles, Retail, Leather  Oil & Gas : Oil & Gas reserves (KG Basin) Refinery, Petroleum Import, pipelines, Gas Based IPPS

7 Value Unlocking : Telengana 7  Population : 3.52 crores  Mineral-rich state, with coal reserves at Singaerni Collieries  Gross State Domestic Product (GSDP) : Rs. 3,35,018 Cr in  Industries : IT, Boitech, Tourism  Power : Coal, Hydel based

8 8 Introduction of APGDC

9 APGDC – An Introduction 9  APGDC Limited incorporated on by APGIC  Equity Structure: APGIC :50% ; GAIL Gas : 50% with each to offload 25% to Private/Public Investors  APGIC : Joint Venture of APIIC with 51% and APGENCO with 49%  GAIL Gas : Wholly owned subsidiary of GAIL (I) Ltd.  Authorized capital is Rs. 100 Crores and paid up as on date is Rs. 20 Crores. APGIC and GAIL Gas paid Rs. 10 Crores each.  Objectives and Business Plan, as developed through KPMG: Development of Natural Gas regional pipeline grid across the state of AP; City Gas Distribution to cover various Major cities of AP.; and creation of LNG infrastructure in the East Coast for import of Gas, etc.

10 APGDC – An Introduction 10 Vision To be the leader in sourcing, transporting and distributing natural gas in Andhra Pradesh, and beyond by maximizing value creation for all stakeholders in an environmentally sustainable manner. Mission Making Andhra Pradesh a Natural Gas driven economy  Objective :  To Design, Develop and construct Gas pipeline and gas distribution systems, Gas processing, Liquefaction, Re- gasification plants and to import, store, process, transport, distribute natural gas  To develop gas distribution networks in the state of Andhra Pradesh  To Source natural Gas : through import or domestic

11 MOU with Govt of A.P. 11  MOU Signed between GAIL Gas / APGDC and GOAP during Partnership Summit, 14 Jan, 2012  To set up of FSRU and On land terminal through APGDC.  GOAP would facilitate permissions and clearances  MOU signed between APGDC and GOAP during Partnership Summit, 14 Jan, 2012  To lay Dedicated natural gas pipeline from Kakinada to Vishakhapatnam  To lay regional pipeline grid  GOAP would facilitate permissions and clearances

12 12  Division of A.P. State : Value unlocking in Oil & Gas Sector  Introduction of APGDC  Transmission & Distribution Infrastructure :  Existing Pipelines  Transmission & Distribution Infrastructure  Unified AP Gas grid  Oil and Gas production infrastructure  LNG Import facilities  Refineries & LPG Pipelines  Oil & Gas Infrastructure : Key enabler of growth  Key drivers and Challenges

13 India : NG Vs Total Energy trend 13  Share of Natural gas in the Energy Basket : 24 %  There is marginal decline in 2013  Share of Natural Gas is in increasing trend in longer term Data Source : B P Statistical Review 2014

14 Natural Gas Consumption 14 Data Source : B P Statistical Review 2014  Share of Natural gas consumption as part of total primary energy : Slow but steady growth  Natural Gas consumption is sizable and significant role in longer term

15 A.P. natural gas demand: salient features  Market Study and Business Plan completed by M/s KPMG:  Existing shortfall:13.6 MMSCMD  Additional prospective demand (in existing plants): 12.4 MMSCMD  Due to drastic reduction in domestic gas production, huge Investments made by power plants threatened to become stranded assets  Power is the first customer base in AP:  Affordability of RLNG is a key issue,  Pipeline connectivity required to mitigate the risk of power shortage. 15 Sector Contract ed qty. SupplyGAP Fertilizer Power CGD Ceramics, Glass, Steel, and Others Total Existing Demand (in MMSCMD) SectorRequire ment GAP Fertilizer (RLNG )5.4 Power * CGD2.0 Others2.0 Total Future Demand (in MMSCMD)

16 Gas Distribution Infrastructure 16 To Bhilwara To Ankot (Gujarat) EWPL (RGTIL) MBVPL (GITL) GAIL KG Basin Network ENPL Ennore Krishnapatnam Gangavaram Kakinada Legends: GAIL KG Network: EWPL (RGTIL) : MVPL (under const): P/l under bidding : LNG Terminals planned: Gas Fields : Dhabol Bangaore (GAIL) Offshore Gas fields (RIL, ONGC, Cairn, GSPL)

17 Gas Pipelines 17 S no.Name of the P/LFrom – ToCapacity (MMSCMD) Status 1GAIL KG Basin Network Kakinada- Rajahmundry – Vijayawada 15Existing 2East West Pipeline (EWPL) Kakinada – Gujarat80-120Existing 3Mallavaram Bhilwara pipeline (MBVPL) Kakinada – Bhilwara57Under Implementatio n 4Kakinada Srikakulam pipeline and Ennore- Nellore pipeline Kakinada to Srikakulam further to Haldia & Ennore to Nellore further to vijayawada 20Under Implementatio n 5Ennore NelloreEnnore - Nellore36Awarded 6Vijaywada - NelloreViajywada – Nellore10-15Proposed

18 18

19 Andhra Pradesh Gas Grid 19 Nellor e Vizag Kakinada V’wada R’mundry Guntur Ongole Tuni Anakapalli V’nagaram GAIL P/L EWPL (RGTIL) APGDC Authorized P/L P/L under biding EOI Proposed Existing CNG locations Proposed CNG Locations Renigunta DBPL Srikakulam  Objective : to transform economy of A.P. To gas based economy  APGDC has made demand assessment and feasibility studies across the state through M/s KPMG  Expression of interest (EOI) to PNGRB, on behalf of the GoAP, for following sections :  Kakinada Srikakulam  Ennore Nellore Pipeline  Nellore Vijaywada pipeline  APGDC has emerged as successful bidder and has been authorized by PNGRB to lay pipeline from Kakinada to Srikakulam

20 Salient Details of KSPL 20  From Kakinada to Srikakulam  Total length : 301 km ( Main Line )  Sources :  Kakinada LNG  Gangavaram LNG  KG Basin ONGC/ RIL KG D-6 / Ravva fields.  Demand Centres:  KG Basin, Kakinada SEZ, MBBVPL, EWPL  Visakhapatnam, PCPIR  Vizyanagram, Bobbilee Ind. Area  Srikakulam

21 AUTHORIZATION BY PNGRB 21  Bid invited by PNGRB:20 th June, 2013  Letter of Intent issued :05 th June, 2014  Performance Bank Guarantee:Rs crore  Letter of Authorization Issued : 16 th July, 2014  Now Open for booking of capacity by Consumers/ Customers

22 Project Implementation schedule 22 S no. Activity 1Authorization by PNGRB 2Detail Route Survey 3ROU, Land & Permissions 4Process Design & Proj. Engg. 5Ordering 6Manufacturing & Delivery 7Contracting 8Construction 9Testing & Commissioning Sep-14Dec-14Mar- 15 Jun-15Sep-15 Dec 15 Mar-16Jun-16Sep-16Dec 16Mar-17Jun Critical Path :

23 Andhra Pradesh Gas Grid: An early Imperative 23 Nellore Kakinada V’wada R’mundry Guntur Ongole Tuni Anakapalli V’nagaram GAIL P/L EWPL (RGTIL) APGDC Authorized P/L P/L under biding EOI Proposed Gas Sources/ Inputs: Renigunta DBPL Srikakulam Vizag  Gas Sources/ Inputs:  Existing: KG Basin  Proposed : Kakinada, Gangavaram, Krishnapatnam, Ennore, DBPL  Gas Grid to Cover all 13 districts of A.P.  Approx. Length : 1600 km  Approx. Investment : 4200 Cr. Karnool Anantpur Chitoor

24 A. P. Gas Grid 24 S no.SectorApprox. Length (km) Approx Investment (Rs. Cr) Design Gas flow (MMSCMD) Gas Transportati on Tariff (Rs./ MMBTU) 1Kakinada - Srikakulam Kakinada – Vijaywada 250 (existing) Existing Vijaywada – Nellore Nellore - Ennore Hindupur – Anantpur – Karnool Hindulpur - Renigunta

25 Infrastructure Investment & Financial viability 25  Investment in Order of magnitude Cost : Rs crore  Schedule :  Immediate : Kakinada – Srikakulam, Vijaywada – Nellore, Ennore – Nellore  Next 3-5 years : Anantpur – Karnool- Renigunta  Linked with Gas availability, Landed cost  Transportation Cost : Rs./ MMBTU, Nominal compared to gas cost

26 Gas Distribution : CGD and CNG 26 Nellor e Vizag Kakinada V’wada R’mundry Guntur Ongole Tuni Anakapalli V’nagaram GAIL P/L EWPL (RGTIL) APGDC Authorized P/L P/L under biding EOI Proposed Existing CNG locations Proposed CNG Locations Renigunta DBPL Srikakulam  Existing CGD :  Kakinada  Rajahmundry  Vijaywada  Proposed CGD and CNGS :  Vizag  Viajayanagaram  Srikakulam  Guntur  Ongole  Nellore  Renigunta

27 Telengana: Gas Infrastructure 27  2 Major Gas grids passing through the state:  EWPL(RIL), MBVBPL (GSPL)  Ramgundam : Gas based Fertlizer  City Gas Distribution and CNG stations  Currently at Hyderabad  Notified for bidding : Nalgonda, Khamam, Medak Rangareddy EWPL MBVBPL VSPL (LPG)

28 28  Division of A.P. State : Value unlocking in Oil & Gas Sector  Introduction of APGDC  Transmission & Distribution Infrastructure  Oil and Gas production infrastructure  LNG Import facilities  Refineries & LPG Pipelines  Oil & Gas Infrastructure : Key enabler of growth  Supports from State Govts and Central Govt.  Key drivers and Challenges

29 Proved reserve of Natural Gas: India 29 Data Source : India Pet & NG statistics  Production in 2013 :33.7 Billion Cu m equivalent to average of 92.3 MMSCMD  Reserve to production ratio of 40.2, vs- a-vis world average of 55.1

30 Oil & Gas Production 30  Krishna Godavari Basin in Andhra Pradesh :  Oil and Gas Discoveries  Onshore and Offshore  Production by Private and Govt Companies  More exploration in progress Nellore Vizag Kakinada V’wada R’mundry Guntur Ongole Tuni Anakapalli V’nagaram Renigunta DBPL Srikakulam Machlipatnam Krishnapatnam

31 KG Basin : Exploration & Discoveries 31 Source : DGH  More than 225 prospects have been probed by drilling of more than 557 exploratory wells.  Hydrocarbon accumulations have been proven in 75 of these prospects  Oil : 22  Gas : 53

32 Oil & Gas discovery in KG Basin 32 Offshore:  84 prospects have been probed by 182 exploratory wells.  Hydrocarbon accumulations have been proved in 33 :  11 oil & gas and 22 gas prospects  3 discovery by ONGC in the block KG-DWN- 98/2 within Plio-Pleistocene sandstone of Godavari formation and  About 19 discoveries have been made by Pvt./JV companies so far in NELP blocks  15 Dhirubhai discoveries by RIL in blocks KG- DWN-98/3 and KG-OSN-2001/2,  3 discoveries by Cairn Energy Pty. Ltd. (CEIL) in block KG-DWN-98/2 within Mio-Pliocene,  1discovery by GSPC in block KG-OSN- 2001/3 within Lower Cretaceous). Onshore  141 prospects have been probed by 375 exploratory wells by ONGC,  11 oil & gas pools  31 gas pools have been discovered  Most of them are on production.

33 33  Division of A.P. State : Value unlocking in Oil & Gas Sector  Introduction of APGDC  Transmission & Distribution Infrastructure  Oil and Gas production infrastructure  LNG Import facilities  Refineries & LPG Pipelines  Oil & Gas Infrastructure : Key enabler of growth  Key drivers and Challenges

34 LNG Projects in East India 34 LNG Terminals planned in East Coast: FSRU based :  Kakinada (2 nos.)  Krishnapatanam  Paradip  Digha  Karaikal Land based terminal:  Gangavaram  Ennore Kakinada Gangavaram Krishnapatanam Paradip Digha Ennore Karaikal FSRU (In progress) Land based LNG terminal FSRU (Planned)

35 LNG Import on the East Coast  In case the LNG Import facility is located on the East Coast in AP, then the delivered price will be lower at least by 4 US Dollar due to the avoidance of additional taxes and transportation charges  Therefore, an LNG Import facility on the east coast can meet the demand shortfall economically when compared to the RLNG terminals on the West coast  Further, towards open access of terminal, power plants can make high sea purchase, where tax component becomes nil, and no customs duty, thereby making more viable LNG Import in East Coast : Advantage LNG un loaded in East coast & delivered in AP LNG un loaded on the West Coast & delivered in AP

36 36 Break Water KDWPKDWP Fishing harbor Offshore Pipeline Onshore Receipt Facility Existing Channel Widening of Channel Kakinada FSRU : Project Layout FSRU Basin

37 FSRU : Configuration vis-à-vis Jetty, Jetty LNG Carrier FSRU Island Break water

38 PLL LNG Terminal 38  land based Liquified Natural Gas (LNG) Terminal at Gangavaram Port  Petronet LNG Limited (PLL) signed a firm and binding term sheet with Gangavaram Port  Initial capacity of 5.0 MMTPA expandable to 10 MMTPA  MoEF Environmental Clearance ObtainedSchedule : 4-5 Years

39 PLL LNG Terminal 39  Close to Vizag Market- but no gas based Industry at present  Breakwater : does not exist for Isolated LNG berth  Availability : Dedicated LNG berth, if made outside harbour is operable only for 250 days.  Land availability : Adequate land not available. Area to be re-claimed from sea and hill cutting involved  Pipeline Connectivity : None

40 40  Division of A.P. State : Value unlocking in Oil & Gas Sector  Introduction of APGDC  Transmission & Distribution Infrastructure  Oil and Gas production infrastructure  LNG Import facilities  Refineries & Product / LPG Pipelines  Oil & Gas Infrastructure : Key enabler of growth  Key drivers and Challenges

41 Refineries & Product/LPG Pipelines 41  Vizag Refinery (HPCL)  Capacity 8.3 MMTPA  Petrol, HSD, LPG, FO, lubricants  VSPL LPG Pipeline (GAIL : 600 Km, 1.4 MTPA  VVSPL Product P/L (HPCL)  Bottling Plant, POL Terminals (OMCs) – Vizag, V’wada, S’bad  Proposed :  Refinery & Petrochem : Machlipatnam  PCPIR – Viazg - Kakinada Existing Refinery Planned Refinery & pet.chem LPG/ Prduduct P/L Corridor PCPIR Machlipatnam

42 42  Division of A.P. State : Value unlocking in Oil & Gas Sector  Introduction of APGDC  Transmission & Distribution Infrastructure  Oil and Gas production infrastructure  LNG Import facilities  Refineries & LPG Pipelines  Oil & Gas Infrastructure : Key enabler of growth  Key drivers and Challenges

43 Oil & Gas Infra : Key enabler to Industries 43  Fertilizer  Power  Petrochemicals  City Gas Distribution  CNG & Transportation  Ceramics, Glass  Other Industries Oil & Gas Infrastruct ure

44 Oil & Gas Infra : Key enabler to Industries 44  Should be efficient and cost effective  Available  Affordable  Environment friendly  Sustainable  To meet Govt Priorities Oil & Gas Infrastructu re : Key Characteris tics

45 45  Division of A.P. State : Value unlocking in Oil & Gas Sector  Introduction of APGDC  Transmission & Distribution Infrastructure  Oil and Gas production infrastructure  LNG Import facilities  Refineries & LPG Pipelines  Oil & Gas Infrastructure : Key enabler of growth  Key drivers and Challenges

46 Key Drivers for Oil & Gas Infrastructure 46  Industry and market Demands  Moderate and sustainable Crude and LNG price regime in International Market  Private sector participation and FDI  Govt Facilitation:  Approvals  Land availability and acquisition ease  Taxation regime – Equitable to gas sector and long term growth oriented  Allocation / allotment of domestic gas to local / State Govt

47 Key Challenges 47  Higher prevailing LNG pricing : impediment to import  Power Plants : Power tariff capped- hence gas price has to be competitive  Huge initial Capital Investment  PNGRB Bidding in gas pipelines : Assymatry, unhealthy competition

48 48 Thank You


Download ppt "A.P. Gas Distribution Corporation (A Joint Venture of APGIC and GAIL Gas Limited) Vizag 20 September 2014 Infrastructure, Petroleum and Gas : Key Enabler."

Similar presentations


Ads by Google