GAIL Global Singapore Pte.

Ltd
(Wholly owned Subsidiary of GAIL (India) Limited)
0
GAILs dominant position in natural gas in India provides GGSPL
with adequate strategic advantage and financial support
1
GAIL Consolidated Revenues
Historic, USD Bn, 2008-12
0.4
0.5
0.6
0.7
0.7
0
1
2
3
4
5
6
7
8
9
USD Bn
1.3
4.7
2010
5.2
1.3
3.3
2009
5.0
1.3
3.2
2008
3.8
1.2
2.2
+22%
2012
8.4
1.5
6.2
2011
6.8
Others Marketing Transmission
Natural Gas
Marketing
Core business, volume of 87 MMSCMD across 16 states in
India (~70% market share)
Extensive CGD presence through subsidiaries and J Vs
Natural Gas
Transmission
11,000+Kms of pipeline (67% share based on length)
Plans to add another 5,500 Kms
LPG Transmission
Only company to operate LPG pipelines
Two major pipelines of length 2038 Kms
LPG and Liquid
Hydrocarbons
Operates seven plants which mainly produce propane,
pentane, naphtha and LPG
Petrochemicals
Produced ~420 TMT of petrochem in 2011 which mainly
consists of HDPE/LDPE pellets
E&P
27 blocks ( including 2 Overseas, operatorship in 2)
1 CBM block
Telecom &
Renewables
Renewables- 5MW solar plant, 113MW wind energy
Countrywide telecom presence with13000 Km of optical fiber
network
GAILs Existing Business Segments
Alliances,
Subsidiaries & JVs
Gas based power Ratnagiri Gas and Power Station
Regasification capacity at Dhabol (5 MMTPA)
GAIL has formed subsidiaries, joint ventures and affiliates
2
GAIL
Subsidiaries (4) JVs (12) Affiliates (5)
GAIL Gas
APGDC
KGGL
VMSS
BCPL
GAIL Global
Singapore
GAIL Global U.S. A
IGL
MGL
Aavantika Gas
BGL
Central UP Gas
Green Gas Ltd.
MNGL
Tripura NG Co Ltd
Opal
Petronet LNG
RGPPL
GAIL CHINA
Gas Energy Holding
SEAGPL Myanmar
GSEG
Fayum Gas
Egypt
NATGAS
Egypt
China Gas
GGSPL is a wholly owned subsidiary of GAIL (India) set up for
the purpose of participating in global LNG markets
GAIL Global (Singapore) Pte. Ltd.
Incorporated in 2004 as a wholly
owned subsidiary of GAIL (India)
GGSPL set up as LNG trading
company in May 2012
Set up as an independent entity to
participate in global LNG markets
GAILs Presence Across the World
As GAIL (India), J Vs and Subsidiaries
GAIL opens LNG trading desk in Singapore
2 Nov 11: "A trading desk in Singapore brings us closer to
(LNG) sellers. It would not only cater to the burgeoning
demand of the Indian subcontinent but also cater to 3
rd
parties
leveraging GAILs long term positions.
~B.C. Tripathi, Chairman & MD, GAIL
Other Global ventures of GAIL (India)
GAIL Global (Singapore) Pte. Ltd.
3
GGSPL will have access to the entire LNG value chain with major
play in liquefaction, LNG shipping and regasification
4
Dominion
Cove , USA
(2.3 MMTPA)
10 LNG Ships
(proposed) for
transporting 6
MMTPA
volumes from
Cheniere &
DCP on FOB
basis
Dahej (10
MMTPA)
Dhabol (5
MMTPA)
Kochi (5
MMTPA)
FSRU
( Dec 2013 )
Long Term SPA LNG Shipping Regasification Liquefaction Downstream Pipeline
Cheniere (3.5
MMTPA)
Gazprom (2.5
MMTPA
DCP , USA
(2.3 MMTPA)
Full access to
~11,000+km of
transmission
pipeline
Direct access to
natural gas
demand sink in
India
GGSPL/ LNG Trading
LNG Value Chain
SCI and other LNG
ship operators
TAPI
GGSPL shall be trading GAILs robust long-term portfolio
Currently set to be the largest off-taker of US LNG
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GAILs Long Term Portfolio
Existing Long
Term Deals
8.3 MMTPA
Deals Under
Discussion
Cheniere Energy
Tenure & Type: 20 year deal on FOB basis
Volume & Index: 3.5 MMTPA priced on Henry Hub
Commencement: 2018
Dominion Cove Point
Tenure & Type: 20 year deal on FOB basis
Volume & Index: 2.3 MMTPA priced on Henry Hub
Commencement: 2017
Asset acquisitions in USA shale gas
East African LNG
Gas sale purchase agreement for Turkmenistan-
Afghanistan-Pakistan-India (TAPI) gas pipeline
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Spot LNG flows
Business Model
LNG Trading
Process
Target Market
GAIL (LNG Sourcing Activities) GGSPL (LNG Trading Activities)
GGSPL
Other LNG
Trading Cos
/Suppliers .
Other
LNG
Buyers
GAIL
GAIL
Other LNG
Trading Cos.
GGSPL
GAILs Downstream
Customers
GAILs
Volume
underwrite
However, GGSPL will maintain full commercial and operational
autonomy from GAIL through clear separation of activities
GAIL will continue to act as aggregator
for downstream companies in India.
GGSPL is shortly being mandated for
sourcing of spot cargoes for GAIL.
GGSPL will trade GAILs long-term
LNG/Term Flexible volumes to 3
rd
parties.
GGSPL target market is far east, Central
Asia and South America apart from
catering requirements of South Asia / India
GGSPLs LNG trading desk will engage in LNG trading, hedging
and shipping as its pivotal activities
GGSPL Pivotal Activities
LNG trading to serve markets in far east, Central Asia and South America apart from catering to the
requirements of South Asia / India
Spot purchase and global market coverage
Purchasing via short-term and mid-term contracts
Swapping of LNG cargoes to optimize infrastructure requirements and for portfolio balancing
Hedging
Hedging exposures arising out of GGSPLs LNG portfolio
Transacting in financial markets for hedging short-term and mid-term exposures
Purchasing futures, options, other vanilla derivative contracts and Swaps in various energy markets
LNG Shipping
Chartering LNG vessels to support GGSPLs LNG trading activities as well as GAILs FOB commitments
Consortium ownership / J V companies and Fleet Management of approx. 8-10 ships of GAILs FOB
volume off-take.
Chartering vessels for FOB spot deals
Entering into charter agreements (if required) to support mid and long-term LNG trading deals
LNG Trading
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GGSPL is open to partnering along three dimensions LNG
trading, infrastructure optimization and South Asian market access
GGSPL Partnering Opportunities
South Asian Mkt.
Access to growth opportunities and a vibrant network within the South Asian natural gas markets
Leverage GGSPLs in-depth understanding of Indian and other South Asian natural gas markets to serve the
growing demand for natural gas imports in these markets
Develop and build on existing relationships with major downstream companies
Bidirectional MSPAs (Selling & Buying)
LNG Trading before year 2017
Some of the Mid Tern contract (under negotiation) has diversion clause which gives optionality of trading those
volumes.
GGSPL planning to do Mid Term contract on FOB basis.
GGSPL with mandate of sourcing GAILs Spot cargos shall be taking various positions in the market and there
could be various opportunity to trade the cargoes with 3
rd
parties.
LNG Trading after year 2017
- GGSPL shall be offtaking Cheniere and Dominion volumes and shall be trading the same as short term volume
or spot to 3
rd
parties
Infra. Optimization
Optimization of shipping infrastructure
Sharing of excess shipping capacity to optimize ship utilization
Swap of LNG volumes to reduce shipping costs
Potential collaboration on storage (natural gas & LNG)
LNG Trading
Thank you
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GAIL Global (Singapore) Pte. Ltd.
Main : +65 6430 6613 Address:
Fax : +65 6430 6614 7 Temasek Boulevard
Direct : +65 6430 6615 Wangz Business Center
Suntec Tower One
Singapore
038987
krsanjay@gail.co.in
amit.singh@gail.co.in
abhishekkumar@gail.co.in