CORPORATE PROFILE

PETRONET LNG LIMITED

May, 2014

OVERVIEW
Global & Indias Primary Energy Consumption Scenario
Indias Gas Scenario, Infrastructure
Role of LNG in India
About Petronets

Dahej & Kochi Terminals

New Initiatives

Performance

PRIMARY ENERGY CONSUMPTION (mtoe) - WORLD

Year 2005

6% 1%
Fuel

2005

2012

6%

Oil
Gas

Oil
Gas

3901
2501

36
23

4130

33

2987

24

36%
28%

Coal
Nuclear
Hydro

Coal

2982

28

3730

30

Nuclear

627

560

23%

Renewables

Year 2012

7% 2%
Hydro

662

831

Renewable
s

84

237

Total

10708

100 12477

100

Oil

4%

Gas

33%

Nuclear

30%

Hydro

24%
Source : BP Statistical Review-June 2013

Coal

Renewables

PRIMARY ENERGY CONSUMPTION (mtoe) - INDIA

Fuel

2005

2012

Oil

120

33

172

31

Gas

32

49

Year 2005

6% 1% 1%

Oil
Gas

33%

Coal
Nuclear

50%

Hydro

Coal

184

50

298

53

Nuclear

7.5

Hydro

22

26

Renewables

2.0

11

Total

367

100

563

100

9%
4% 2%
1%

Renewables

Year 2012
Oil

31%

Gas
Coal

53%

9%

Nuclear

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
2012-13 2013-14 2014-15 2015-16 2016-17 2019-20

Gas Demand (mmscmd)

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

10

227

248

272

307

358

443

Total Realistic
Demand

Source : Vision 2030, Natural Gas Infrastructure in India

CURRENT GAS DEMAND &

DOMESTIC SUPPLY SCENARIO
1000
Demand

900

(25.3)

Domestic Supply

713

(mmscmd) (bcf/day)

(22.2)

800
700

(15.7)

600

(12.7)
(10.9)

500
(9.6)

400
(8.0)

300

227

(8.8)

101.1

358

307

248

211.79

102.5

111.26

120.63

156.7

(3.6)

(3.9)

231.42

172.2
(7.5)

(5.6)
(3.6)

442

272

200
100

625

(8.2)

(6.1)

(4.3)

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
mmscmd, at customer gate prices

358

85
32

143

53
40

275
228

47

72
156

103
1
2012 year
Price of
end
$19-20/
consumption mmbtu
Sectors
with
demand

28

119

147

156

156

2
Low

Industries
CNG
transport

Price of
$16-17/
mmbtu

Refineries
Industries
New
fertilizer
plants

55

303

202

156

3
Medium

Price of
$13-14/
mmbtu

Peaking
power
plants

4
High

Price of
$11-12
mmbtu

Potential
demand,
2015

Base load
power

Imports

Prices at Crude of $ 110/Bbl

Source: Vision 2030. / PLL analysis

Domestic supplies

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 Indias 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, Indias LNG import capacity around 23.0 mmtpa

through 4 terminals & meeting

gas supply of the country

more than 35% of total

PETRONET LNG LIMITED

Incorporated on April 2, 1998
Authorized Capital Rs. 1200 Crores , Paid up capital Rs. 750 Crores

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

TOWARDS THE VISION

Vision

Business Strategy

To be a key energy provider to the nation

by leveraging unique position in the LNG
value-chain with international presence
Revenue grew 32%
EBITDA growth 13%

(In

Create and manage world-class

LNG infrastructure

Continue excellence in LNG

business

Crores)

40000
35000

- Focus on higher capacity

utilization and better
operational efficiencies

37747
Revenue

EBIDTA

31467

- Diversify LNG sources

30000

25000

22696

20000

13197

15000

10649
10000

5509

6555

5000

685

920

8429
978

944

1284

1914

2205

1582

0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Diversify business
-

Wind Farm

City-gas distribution/ direct

marketing

Air Separation Unit

Solid cargo port at Dahej

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

Commissioned on April 18, 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
Second Jetty

DAHEJ PLANT FACILITY

13

DAHEJ SECOND JETTY

SATELLITE LNG HUB & LNG BY ROAD

LNG BY ROAD

SATELLITE HUB

VAPORISATION
FACILITIES

KOCHI PLANT OVERVIEW

KOCHI LNG TERMINAL

LNG Terminal located in Special Economic

developer status

Zone with Co-

Capacity 5.0 mmtpa

Tied up 1.44 mmtpa LNG from Exxon Mobils 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
KASARGOD

BANGALORE

1 6

KANNUR

KRISHNAGIRI

2
SALEM

a.
b.
c.
d.
e.
f.

KOZHIKODE
PHASE-I CUSTOMERS
FACT, Udyogmandal
KOOTTANAD
BSES, Kochi (Reliance
Energy)
BPCL, Kochi
KSEB, Brahmapuram
FACT-II, Kalamssery
TCC

States: 03
Districts:17
LEGEND
CUSTOMER LOCATION
KKBMPL PHASE I
KKBMPL PHASE II
KOCHI-KAYAMKULAM PL

TIRUPPUR

ERODE
COIMBATORE

5
4

FACT 1

b
KOCHI

FACT 2

d
c
f

NTPC,
KAYAMKULAM
No decision

PHASE-II CUSTOMERS IN KERALA

1. Kasargod power plant
2. Western India plywoods Kannur
3. Kottakkal Aryavaidya sala, Kottakal
4. Indsil & Precoat mills, Palghat
5. Apollo Tyres, Perambra
6. Cheemeni power plant, Kasargod

Delayed

Completed
19

NEW TERMINAL AT EAST COAST

Proposed Capacity: 10 mmtpa
Initial Capacity :
Location:

Pradesh

5 mmtpa

Gangavaram,

Andhra

DFR, FEED and various other pre-

project

activities

completed

with obtaining of clearances

Estd. Project cost:

5000 Crs.

along

Gangavaram

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 customers premises in regions not serviced by
pipelines under the Brand name of

PERFORMANCE GRAPH
Sales/ Service TBTU

Net Worth (

600

Crores)

6000

548
524
494

500

4986

5000
4450

440
400

400

4000
3520

322
290

300

321
3000

2682

247

2236
2000

200

125
100

1000

0
0

1983
1619
879

1072

1274

PERFORMANCE GRAPH
Turnover

Crores

Profit

Crores

1400

40000

37747
1149

1200

35000

31467
30000

1058
1000

25000

22695

800

711

20000

620
600

15000

13197
10649
8429

10000
5000

3837
1945

5509

475

518
405

400

313

6555
195

200

0
0
-28

-200

USD per share

FINANCIAL PARAMETERS
160

151

Mkt. Price INR

140

144

120

133

123

100
80
60
40
20

47

46

82

73

62

40

27

0
2004

2005

Year
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14

2006

2007

EPS (INR)
4.17
6.33
6.91
5.39
8.26
14.10
15.32
9.49

2008

2009

2010

P/E
23.99
11.15
11.62
5.75
15.19
9.29
8.83
14.75

2011

2012

2013

D/E
1.08
0.97
1.15
1.12
1.20
0.93
0.68
0.66

Current

* - As on date

PERFORMANCE BASED ON EMPLOYEE PARAMETERS

201314*

2012-13

2011-12

201011

No. of Employees

427

397

309

276

Turnover/ employees ( INR Crores)

88.4

79.26

74.1

47.64

Profit Before Tax / Employee ( INR Crores)

3.19

4.80

5.6

3.93

Profit After Tax(INR Crores)

1.66

2.89

3.45

2.23

6.55%

3.22%

2.83%

3.37%

Employee Remuneration cost* (as % 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
Service

Baa3
(sovereign)

PLL Domestic Rating & Ranking

AA+

Ratings & Ranking:

Moody International Rating Baa3

Rated AA+ by Fitch and ICRA rating

Agencies
36th rank in ET (2012-13)

AA+

2012-13

37
29

2012-13
2012-13

36
109

2012-13
27
2012-13

37th rank Fortune India 500 (2012-13)

150th Largest Company & 301th most
Profitable Company in Plimsoll Global
Analysis on Global Crude Oil & Gas
Extraction Industry ranking
Letter of Appreciation for maintaining
low methane emission footprint at
Dahej facility from United State
Environmental Protection Agency

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