PETRONET LNG LIMITED

OVERVIEW

 Global & India’s Primary Energy Consumption Scenario

 India’s Gas Scenario, Infrastructure & Prices
 Role of LNG in India
 About Petronet’s
 Dahej & Kochi Terminals
 New Initiatives
 Performance
 Corporate Social Responsibility

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PRIMARY ENERGY PER CAPITA CONSUMPTION

Source : BP Statistical Review June 2010

3
 WORLD VS. INDIAN ENERGY SCENARIO

WORLD INDIA
5% 5% Oil
Oil 1%
7%
34% 32% Gas
Gas
29%
Coal
Coal
52% 10%
24% Nuclear
Nuclear
Hydro
Hydro

Source : BP Statistical Review, June 2010

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 INDIA‘s CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO

400.0
381.0
350.0
341.1
300.0
306.4
250.0 253.4
200.0 202.9 Demand
178.9
150.0
191.6 198.4
146 155 Supply
100.0
(In MMSCMD)
50.0

0.0
2010-11 2011-12 2012-13 2013-14 2014-15

Demand – Mercados Analysis

Supply – Directorate General of Hydrocarbons (DGH) 5
 SECTOR WISE PROJECTED GAS DEMAND

Gas Demand (MMSCMD)

250.00

200.00

150.00

100.00

50.00

-
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Power Fertilizer City Gas Petchem-Refinery Sponge Iron

2010-11 2011-12 2012-13 2013-14 2014-15

Power 87.71 149.11 185.52 212.73 243.34

Fertilizer 49.39 57.48 68.08 68.08 68.08

City Gas 13.70 17.53 22.44 28.72 36.76

Petchem-Refinery 24.44 25.42 26.43 27.49 28.59

Sponge Iron 3.71 3.82 3.93 4.05 4.17
Total 178.94 253.36 306.41 341.08 380.95
Source: Mercados Analysis, 2010
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INDIA’s GAS INFRASTRUCTURE
 PREVAILING GAS PRICES

LAND FALL MARKETING CENTRAL SALES TRANSMISSION SERVICE DELIVERED PRICE

PRODUCER PRICE MARGIN TAX CHARGES TAX TO CUSTOMERS

US$/MMBTU (US$/MMBTU) 2% (US$) US$/ MMBTU 10.30% (US$) (US$/MMBTU)

ONGC/Oil APM
(including Royalty) 4.20 - 0.08 0.60 0.06 4.94
ONGC C – Series
(including Royalty) 5.25 0.12 0.10 0.60 0.06 6.13

PMT 5.65 0.11 0.12 0.60 0.06 6.54

Other JVS (Ravva) 3.50 0.11 0.07 0.60 0.06 4.34

RLNG (Approx)* 6.50 0.17 0.15 0.60 0.06 7.49

Reliance KG6 4.20 0.14 0.09 1.80 0.19 6.42

Subject to change as per Company & GOI Policy

* - Depending on prevailing market price 8
 THE LNG CHAIN
DOWNSTREAM
UPSTREAM RECEPTION, STORAGE TRANSMISSION &
SUBSURFACE LIQUEFACTION, STORAGE & REGASIFICATION DISTRIBUTION
DEVELOPMENT SURFACE DEVELOPMENT AND LOADING SHIPPING

Production

Liquefaction plant Regasification

plant
Gas Gas
Separation LNG storage LNG storage
Treatment Loading transmission
Unloading
Gas
Transport

Gas Reserves
For export or
Gas Liquids local use
storage

Owner
LNGGas / Operator
field
Producer & extraction LNG Production Cryogenic Regasification Transportation
vessels

Project Facilities to be Constructed • LNG unloading, storage &

• Natural gas extraction & purification. • LNG regas terminal .
• LNG liquefaction trains with adequate capacity . Carrier
• LNG Storage capacity. • Gas transportation network
• LNG Loading facilities.

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 LNG IN INDIA

 High Power group study ‘Hydrocarbon Vision 2025’ laid exploration & production and demand
supply scenario of oil & gas with GDP growth of 5-6%.
 Current GDP growth of 7–9% translate into overall energy demand growth at CAGR of 7.50%.
 Given India’s growing energy requirements and 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
 Dahej LNG Terminal of 10.0 MMTPA managed by Petronet LNG Limited.
 Hazira LNG Terminal of 3.5 MMTPA operated by Shell & Total.
 LNG terminal at Dabhol (2.5 MMTPA) likely commissioning 2012.
 Petronet’s Kochi (2.5 MMTPA expandable to 5.0 MMTPA) likely commissioning 3rd Qtr., 2012.
 Presently, India’s LNG import capacity is around 13.5 MMTPA through its two terminals & meeting
approx. 20% of total gas supply of the country.

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 PETRONET LNG LIMITED

 Petronet LNG incorporated on April 2, 1998 to play an important role in the

Hydrocarbon Sector to enhance energy security of the Country.

 50% Equity held by Oil & Gas PSUs (ONGC, IOC, BPCL and GAIL )

 10% Equity held by GDFI (part of GDF SUEZ)

 5.20% & 34.8% held by ADB & Public respectively.

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 DAHEJ LNG TERMINAL

Located at West coast, State of Gujarat (India) in the Gulf of Cambay.

Dahej terminal commenced operations in 2004 with the nameplate capacity

of 5.0 MMTPA.

Capacity expanded to 10.0 MMTPA in July, 2009.

Terminal comprising :
 2.5 KM long Jetty with unloading facilities
 Four LNG storage tanks (of 148000 CBM each)
 Regas facilities
 Truck loading facilities for onland sales.
7.5 MMTPA sourced through Long Term Contract with RasGas, Qatar with
back to back sales arrangement with GAIL, IOCL & BPCL.

Additional LNG being sourced through Spot /Short Term Contracts & sold
to Offtakers/ Bulk Buyers.

Connected to major trunk pipelines HBJ & DUPL of GAIL and Gujarat’s
GSPL Network.
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DAHEJ LNG STORAGE TANKS

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DAHEJ FACILITIES

AIR HEATER GTG

STV JETTY WITH LNG SHIP

 PETRONET’s SHIPPING FLEET

RAAHI
ASEEM

DISHA
 SECOND LNG BERTH AT DAHEJ

 Existing marine facilities adequate for 10.5 -

11.0 MMTPA of LNG.

 Developing second LNG Jetty to enhance

capacity of Dahej terminal.
 New Jetty helps mitigating risk of operating on
single Berth

 Facilitating berthing of tankers up-to 260,000

CBM (Q-Max)

 Scheduled Commissioning – III Qtr, 2013.

 Estimated Investment – US$ 180 Million.

 LNG TRUCK LOADING FACILITIES – DAHEJ

WEIGH BRIDGE
 Truck Loading facility at Dahej terminal
was commissioned in August 09, 2007 as
a Pilot Project.

 Currently about 4-5 trucks are loaded on

daily basis & total of around 1700 trucks
have been loaded till date.
VAPORISATION FACILITIES
 Facility can handle 2500 loadings / Yr.

 Presently LNG (by road tanker) is being

sold to limited consumers in Western
region.

 Fast developing market with several new

consumers (up to 800 KMS) are being
lined up for off-take of LNG for industrial
and city gas use. 17
 KOCHI LNG TERMINAL

 LNG Terminal part of newly created Special Economic Zone & Petronet one of the Co-
developers.

 Capacity - 2.5 MMTPA, being expanded to 5.0 MMTPA.

 Tied up 1.44 MMTPA LNG from Exxon Mobil’s Gorgon Venture in Australia.

 Work for building two LNG Storage Tanks awarded to IHI, Japan.

 Work related to Regasification Facilities awarded to CTCI, Taiwan.

 Work related to Marine Facilities awarded to Afcons Infrastructure Limited.

 Progress on schedule, overall completion 71%, Scheduled Commissioning in 3rd Qtr. ,

2012.

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KOCHI - TANK 101 & 102

19
KOCHI - MARINE FACILITIES

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CONSTRUCTION ACTIVITIES – KOCHI TERMINAL
 SOLID CARGO PORT PROJECT-
PROJECT- DAHEJ

 Petronet holds 26% Equity in Joint Venture Company with the Adani Group to develop
a Solid Cargo Port in Dahej (Adani Petronet (Dahej) Port Pvt. Limited).

 Capacity to handle 20 MMTPA of dry bulk cargo/year (Coal, Steel and Fertilizers).

 Phase I commissioned in September, 2010 and Phase II scheduled to be completed

by March, 2011.

APPROACH BUND

PILE DRIVING IN MAIN BERTH 1

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 INTEGRATED POWER PLANT AT DAHEJ

 Completed Detail Feasibility Report for a 1200 MW Power Plant of 3 x 356 MW (total
1068 MW) , Single shaft CCGT.
 Land Acquisition & Environment Clearance in process , market analysis being carried
out.
 Anticipated Project cost of about Rs. 3,000 crore.
 Project to be domiciled on the Balance Sheet of Petronet.
 Primary fuel for Project to be sourced from international markets.
 Aggregate gas requirement of 1.0–1.1 MMTPA.
 Anticipated Implementation time-frame of 30 -36 months.

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 DIRECT RLNG MARKETING

 Petronet plans to foray into Direct Marketing by focusing on the following areas:

 Entered into direct RLNG marketing by signing HOA with bulk end consumer in Power
producers, Industrial consumers , Fertilizers Producers etc

 LNG/LCNG i.e. LNG through Trucks and supplies at LNG hubs, customer’s premises in
regions not serviced by pipelines.

 LNG/RLNG trading on International and domestic platform.

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 FINANCING STRUCTURE (US$ MILLION)

Particulars Dahej Kochi 2nd Berth at Total

Terminal Terminal Dahej

Shareholders Fund 250 250 60 560

Equity Capital/Internal
accruals/Premium
Debt 550 600 120 1270

Total Means of Finance 800 850 180 1830

*Petronet generates approx. US$ 125 Million cash from its existing operations. After
servicing shareholders, the balance will be used to finance Expansion Projects.

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 PERFORMANCE GRAPH

LNG Sold (TBTU) NET WORTH (MILLION USD)

450
600
400 384

350 500 486

322 321
431
300 287
400
247 352
250

300 277
200
233
150 191
125 200

100
100
50

0 0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
 PERFORMANCE GRAPH

PAT (Million USD)

Turnover (USD Million) 120
2500 113
2305 103
100
2000 88
1772
80
68
1500 1425

1198 60

1000 42
834 40

500 423
20

0 0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
-6
-20
 CSR -THE JOURNEY HAS JUST BEGUN……………
TOWARDS AN INCLUSIVE SOCIETY

• Participative community development programmes with GIDC Luvara & Lakhigam villages
• CODEGAZ, the CSR arm of our strategic partner GDF Suez supports our cause.
Health & Sanitation
• Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage.
• Preventive and Social medicine aids (includes primary health centre).
Education and Employment generation programs
• Construction of School , Scholarship & Vocational Training.
• Sponsorship of differently abled children of Tamanna School & 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.
• Govt. Development Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre.
NOTES
NOTES
 Thank You
Corporate Office
Petronet LNG Limited,
Dahej Plant 1st Floor, World Trade Centre,
Babar Road, Barakhamba Lane,
Kochi Site
Petronet LNG Limited Petronet LNG Limited
GIDC Industrial Estate, New Delhi – 110001
www.petronetlng.com Survey No. 347,
Plot No. 7/A, Dahej,
Taluka Vagra, Puthuvypu P.O. ,
For any other info. : Kochi, Kerala - 682508
Distt. Bharuch akchopra@petronetlng.com
Gujarat - 392130 Ph: 91-11-23411411