integrated gas - total.com · •fsru and power generation •b2b & b2c marketing and new...

Philippe Sauquet

President Gas, Renewables & Power

Integrated Gas

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2017 Field Trip

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400

2005 2015 2025

100

Coal Gas CCGT

CCGT cost competitive, flexible and clean LNG continuously growing, new markets opening

Gas: Competitive, clean and flexibleLNG global demand growing strongly, led by Asia

2005-25 LNG demandMt/y

Levelized cost of electricity in Asia$/MWh

Capex

Fuel

Opex

CO2

JapanKoreaTaiwan

China

Rest of Asia

Europe

Middle East

Other

-20%

1

+5%per year

+6%per year

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200

LNG projects

400

2015 2020 2025 2030

Opportunity to develop low cost LNG projects post-2020Further reducing the breakeven of competitive projects

Potential LNG project merit orderMt/y capacity, breakeven DES Asia

LNG supply & demandMt/y

to besanctioned

Under construction

Existingsupply

Demand

<6 $/Mbtu

6-8 $/Mbtu

8-10 $/Mbtu

10-12 $/Mbtu

Papua LNGQatar

NLNG T7Tellurian

Source: IHS Source: Wood McKenzie and Total estimates

2

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US exports

Altamira

South Hook

Fosmax

Dunkirk

SnøhvitYamal

Angola

Nigeria

Yemen

Qatargas 1 & 2

Adgas

Qalhat

OmanIchthys GLNG

Bontang

Papua

project

Hazira

Liquefaction

Existing & new regasification

Long term purchase

Existing & post 2016 long term sales

Global player with access to all LNG marketsGrowing flexibility from scale and integration

Brazil

Cuba

Pakistan

2 Mt/y new

contracts in 2016Ivory Coast

Tellurian

3

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Growing integrated LNG businessDeveloping downstream gas help launching profitable Upstream projects

Integrated LNG portfolio Mt/y

x2x2.5 60%+80%

Regas B2B & B2CLiquefaction Trading

2017 2022

Reducing Upstream breakevens

Expanding global trading and shipping

Growing Downstream integration

• FSRU and power generation

• B2B & B2C marketing and new usages

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Focusing on

low cost gas

(onshore)

Optimizing the full value chainDriving down costs in all segments

0.5-2$/Mbtu

Simplifying

designs (modular, small

scale, brownfields)

1-2$/Mbtu

Increasing

flexibility of

portfolio

0.2-0.4$/Mbtu

Reducing

Boil-off

0.5-3$/Mbtu DES Asia

Operating

floating regas(FSRU)

~0.5$/Mbtu

Leveraging

digital

platforms

B2B: 0.2-0.4 B2C: 1.5-2.5

$/Mbtu

Production Liquefaction Trading Shipping Regasification Marketing

5

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Starting from low cost gasOptimizing the development of competitive resources

1.5

Production cost$/Mbtu Capex+Opex, including transport

DeepOffshoredry gas

US Shale Papua QatarNigeria

Source: Wood McKenzie and Total estimates

x 2.5cheaper

6

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1,000

Reducing liquefaction costs to ~500 $/tPrioritizing low cost modular solutions and brownfield expansions

Liquefaction cost$/t Capex

~500 $/ttarget

USmodular

Papua Yemen(2009)

QatarEast Africa

Greenfield

NLNG T7

Source: Wood McKenzie and Total estimates

7

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Floating regasification units reducing cost to ~50 $/tWorld capacity expected to double to ~120 Mt per year by 2020

50

100

Onshore FSRU

Regasification unit cost$/t, Capex

Opening new LNG markets, quick & easy to install

4 Mt/y announced, evaluating ~6 Mt/y

-60%

8

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Flexible supply & demand in line with market needs

Targeting 5% market share of LNG trading

Solid long term contracts

Growing balanced trading portfolioLeveraging size and flexibility to maximize margin

2022 long term contracts price reviewsWell balanced LNG trading portfolioMt/y

Fixed destination

Flexibledestination

Long term sales

B2B/B2Cintegrated

regas

spot

Price review before 2022

Price reviewafter 2022

No price review

Floating regas long term sales

2016supply

2016demand

2022supply

2022demand

9

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Growing B2B and B2CMarketing activities adding margin and resilience to the portfolio

30

Highest

cost

average

cost

Total

Lampiris

Lowest

cost

Cost to serve European B2C customers€/year/client, for Total and European competitor range*

High performance, low-cost digital platform

Save money now!

ESTIMATE MY SAVINGS

SUBSCRIBE IN 2 CLICKS

Your green electricity

Yourgas

Combinedoffer

10

- 50%

* Total estimates

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Building supply network on main bunkering hubs Deploying Pitpoint technology in >300 stations

Developing new markets for gasDownstream portfolio generating new demand

Road transport – Natural gas for vehiculesBecoming the European leader by 2022

Marine transportLNG stimulated by IMO 2020 regulation change

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Integrated gas delivering >2 B$ free cash flow by 2022Sustainable benefits from long plateau production

Integrated gas free cash flow at 50 $/bB$

2xGas & LNG

trading portfolio

+10% per year

B2B/B2C sales

+5%per year

production

202220192017

Capturing full value chain margin

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integrated gas - total.com · •fsru and power generation •b2b & b2c marketing and new...

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