omv gas & power strategy - wec-austria.at · omv gas & power move & more. omv gas &...
TRANSCRIPT
OMV Gas & Power
Move & More.
OMV Gas & Power
WEC Austria EA, Joint Board Meeting and 62th session of the GA Vienna, 08 April 2010
2 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
OMV is the leading energy provider in the European growth belt
The OMV 3plus strategy: Combination of our 3 strengths leads to sustainable growth
3 Markets - PLUS supply regions strengthening market position (and vice-versa)3 Divisions - PLUS expansion of the business portfolio towards sustainability3 Values: Pioneers, Professionals, Partners -PLUS synergies through leveraging integration
Regional focus
Expand downstream in our growth markets and connect to supply regions
Portfolio adaptation
Reduce carbon intensity and strengthen E&P and G&P businesses with power investments to enhance gas value
Costs/synergies
Strict cost and capital discipline. Realize cost and revenue synergies through integrated position
3 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Natural Gas, the energy source of the near future
Facts
World gas demand is expected to growth 1.5% per year until 2030
Prominent role in a carbon-restrained world
Power generation sector is the key driver of gas demand
Cleanest fossil fuel
High efficiency
Flexibility needs due to renewable power plants
Further enhancement of markets (liquidity, flexibility, linkage)
Further development of technologies (e.g. shale gas)
World primary natural gas demand
Source: IEA World Energy Outlook 2009
-
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
2007 2015 2020 2025 2030
gas for power generationresidential, comm, agricultureindustry
non-energy useothers and GTL
bcm
4 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Power generation drives OECD Europe gas demand increase
Incremental increase in gas demand 2007 –
2030
Source: IEA World Energy Outlook 2009
-50 0 50 100 150 200 250 300 350 400 450 500
Asia
Middle East
OECD Europe
E.Europe/Eurasia
Latin America
Africa
OECD North America
OECD Pacific
gas for power generationresidential, comm, agricultureindustrynon-energy useothers and GTL
bcm
5 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Gas & Power: Long-term growth is expected
Sources: OMV analysis based on KBC (2009)Scope ITA & GER: gas –
South Germany & North Italy; power –
Germany
-5 % 1 1 % 4 %-2 4 % 2 5 % 1 1 %
o il g a s p o w e r
Growth 2010-15
Growth 2010-30
22%16%
61% 56%
gas power 40%46%
gas power
109% 218%
4%14% 11%
33%
gas power
Key drivers
Further electrification leads to high long-term growth of power demand especially in OMV markets
CO2 drives renewable power sector and need for flexible gas-fired power generation units
Further development of gas and power markets into traded markets
Increased liquidity
Integrated trading and optimization approach of players
Further liberalization
OMV markets
6 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
0
100
200
300
400
500
600
700
800
2008 2009 2010 2015 2020
Europe faces a gas supply gap after 2012
Growth of demand slows down in the short-term
Oversupply will not be an issue post 2012
Long-term demand forecasts indicate stable growth of gas demand
Growing demand mainly driven by power sector
Import dependency of Europe will increase
Indigenous production will decrease by 25% until 2015
Supply gap
Advanced projects
Imports contracted
Indigenous production
Total gas demand EU 27 + TR
bcm / Supply gap incl. advanced projects
Global Insight (2009)Cedigaz
(2009)Cera
(2009)
Demand forecasts
bcm
Source: OMV
7 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
International Player
Downstream market focus on European growth belt
Significant contribution to oil and gas supply in the OMV markets
Initiatives to connect supply regions with downstream markets
Baumgarten as international node for gas transit in the heart of Europe
Central European Gas Hub
Activities on main international gas hubs
Initiatives to expand gas infrastructure (storage, pipelines, LNG)
OMV’s international footprint
Portfolio of OMV AG
NBP TTF
NCG
CEGH
8 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Nabucco will bring “fresh”
gas to OMV markets - Important milestone achieved in 2009
Intergovernmental Agreement (IGA)
Stable legal framework
Political agreement among the Nabucco transit countries (Austria, Hungary, Romania, Bulgaria and Turkey)
Guarantees full political support. Agreement is valid for 50 years
Ensures equal legal conditions for gas transit throughout the entire Nabucco pipeline system
Lays down transport tariff methodology and rules for network access
Establishes political committee comprising representatives of all signatory countries to support development of the project
All exemptions in place
IGA ratified in Austria, Hungary, Romania, Bulgaria and Turkey
IGA signing in Ankara on 13 July 2009
9 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
2011 2012 2013 2014 2015 2016 2017 2018 2019
Nabucco –
a strong supply line connecting OMV markets
Status
Conclusion of Project Support Agreements
IGA ratified in all transit countries
Execution of Environmental and Social Impact Assessment (ESIA)
Continuing detailed engineering
Financing negotiations with EIB, EBRD and IFC
Open Season process in 2010
Construction Step I
Phase 1 Phase 2 Construction Step II
Operation
Compressor station (planned) CEGH
Nabucco
Gas Pipeline
10 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
DONG
HuberatorGaspool
NCG
PSV
CDG
PEG
TTF
NBP
Trading hub
Gas Exchange launch in December 2009 –
an important
milestone for the further development of the market
Central European Gas Hub (CEGH)
CEGH to become a leading hubin Continental Europe and further increase liquidity in the region
CEGH trading volume rose to 22.8 bcm/y in 2009
Via swaps the gas transported via Nabucco can be transferred to all over Europe
In connection with EEX: Trading of gas and power
Central clearing by ECC
Standardization of gas trading activities
International clearing members active
Implementation of Futures Trading in 2010
European trading hubs
0
5
10
15
20
12.1
2.20
09
17.1
2.20
09
22.1
2.20
09
27.1
2.20
09
01.0
1.20
10
06.0
1.20
10
11.0
1.20
10
16.0
1.20
10
21.0
1.20
10
26.0
1.20
10
31.0
1.20
10
05.0
2.20
10
10.0
2.20
10
15.0
2.20
10
20.0
2.20
10
25.0
2.20
10
02.0
3.20
10
07.0
3.20
10
12.0
3.20
10
17.0
3.20
10
22.0
3.20
10
27.0
3.20
10
Historical Trade Development
Trades
Baumgarten
Day-Ahead Trades*
* The trading volume and the amount of trades are calculated in single count method and crossings are excluded.
11 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Gas logistics provides the infrastructure basis for the growth strategy and stable cash flows
Gas pipelines
Transit system in Austria:increase capacity due to market needs and Nabucco volumes
Feeder lines to Nabucco
Storages
in sales clusters to provide more flexibility
Germany
Austria
Romania
Turkey
LNG
regasification to support diversification of supply
Gate terminal
Adria LNG
Gas logistics asset portfolio
Russia
Caspian
Middle East
Adria
WAG
TAG
Gate
North Africa
South Stream
Arab Gas
Pipeline
existing planned potential
Storage:
Nabucco
Blue Stream
12 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Austria’s gas logistics infrastructure: European node and OMV’s backbone of the gas business
Infrastructure in 2009
Gas pipeline transportation capacity of 75 bcm in total
Storage working gas volume of2.33 bcm in total
New compressor station Weitendorf on TAG
Technical feasibility for storage Schönkirchen Tief finished
OMV’s operated gas infrastructure in Austria
Tallesbrunn
Schönkirchen
WAG
PentaWest
TAG
HAGThann
Baumgarten
13 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Gas sales portfolio comprises three clusters with essential regional partners
Sales clusters EconGasLeading wholesale company in AustriaInternationalization on track (current share of international volumes: 37%) 8.3 bcm sold in 2009
PetromLeading wholesale company in Romania4.6 bcm sold in 2009Gas price regulation still an issue
Turkey40% stake acquired in Turkish gas company Enerco in 20092nd biggest gas sales and trading company in TurkeyLong-term gas supply secured for the Turkish gas-fired power plant
14 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
OMV adds gas-fired power generation to its portfolio
Strategic rationale
Gas-fired power generation drives the gas demand
Strong position of OMV in gas business (supply, trading, storages, pipelines)
Strategic thrust
Additional value creation through expanding the gas value chain to electrical power
Power strategy
Build up an asset portfoliowith gas-fired power plants and realize opportunities in renewable energy
Set-up an integrated asset backed wholesale and trading
Power plant projects
Gas-fired power plant project
Gas-fired power plant project (pre FID)
Screening of wind power market / projects
15 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Gas-fired power plant project in Brazi/Romania
Capacity860 MW net = 2 x 280 MW gas turbine + 1 x 300 MW steam turbine
TypeCombined cycle gas-fired power plant (CCPP)
StatusFirst brick ceremony at Brazitook place on 03 June 2009Piling finished and foundation works ongoingMechanical construction ongoing
Construction of the electrical overhead line in progress
OMV Petrom
2009: Start of construction
2011: Start of commercial operation
16 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Gas-fired power plant project in Samsun/Turkey
Capacity870 MW net = 2 x single shaft trains (gas turbine/generator/ steam turbine set) each 435 MW
TypeCombined cycle gas-firedpower plant (CCPP)
StatusOMV reached full ownershipGas supply contract secured Gas supply via Blue Stream Terminal and gas pipeline connectionGround preparation works startedPermitting ongoing
2009: Start of construction 2012: Start of commercial operation
OMV
17 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Combining strengths of gas-fired and renewable power plants
Gas-fired CCPPsFlexibility “on demand”Additional outlet for gas sales (secure demand)Low investment costs per capacityAbility to flexibly operate on day-ahead and balancing marketLowest CO2 emissions of fossil fuel plants
Renewable power plants
Must-runners
Low/zero variable costs
Generation dependent on weather conditions
Low carbon footprint
Fastest growing energy segment due to changing energy map
Favorable regulatory setting
18 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
OMV as observer in the Desertec
Industrial Initiative
Short-Term initiativesDevelop a business plan, a feasibility study and a freely available Solar Irradiation Atlas Kick off program to demonstrate the practical feasibility
2050 Vision15% of the European power demand by 2050700 TWh/a transferred from MENA to various centers of demand in Europe; Total production in MENA: 4,000 TWh/yCover growing energy needs in MENA states
19 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
OMV in the new Headquarters
Head Office in “Viertel
2”
Easily recognizable and major architectural addition to the 2nd district
“Plus Zwei”: 8 floors/33 meters high
“Hoch Zwei”: 23 levels/80 meters high
Active symbol of the collaboration within the Group (1.590 people)
Interaction of people and departments
20 |OMV Gas & Power, Dr. Werner Auli, 08 April 2010
Thank you for your attention!