power sector retreat presentations - jan 20-21 2012 - nnpc

7/17/2019 Power Sector Retreat Presentations - Jan 20-21 2012 - NNPC

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Gas Infrastructure andSupply

January 20, 2012

Dr. David Ige

Group Executive Director, Gas &Power

Nigerian National PetroleumCorporation


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Gas Strategy and Anchor Sectors

GAS T !"#$%& 'y 201(, )e )ouldhave positioned*igeria +rly as theundisputed regionalhu- for gas-asedindustries such asfertili/er,petrocheicals andethanol.

GAS 'AS#D I*DST$IAISATI* 3IG3 4A# #5!$T

ST$AT#GI67$A8#"$9 7$

*IG#$IA* GAS

6onsolidate *igeria:s

position and ar;etshare in high valuee


3/29

Gas 6onsuption and Deand7orecast

'ased on the forecast gro)th in doestic gas deand, )e foreseeopportunities in transission and ar;eting

0

?00

1,000

1,?00

2,000

2,?00

@,000

@,?00

(,000

(,?00

*igeria:s 3istorical and !roected Gas Deand

Power LDC GBI WAGP

Year

scf

3


4/29

Gas Availa-ility Sources of Gas in Doestic 8ar;et

7G* 8andatedDoestic Supply-ligations BDSC

Direct 'ilateralArrangeent

-et)een Suppliersand 'uyers

nutili/ed Gas 7lares

Most significant short/medium term

planned source of gas

Allocation of available gas from

DSO sources managed by GACN

@ Sources of Gas in*igeria

Gas from suppliers over and above their

respective DSO

Managed bilaterally on a willing buyer

willing seller basis i!e! negotiated terms

"imited volume in the short term

particularly from #OCs!

Small flared gas for which no plan e$ists

to utili%e but &rdparty players may

propose utili%ation plans

4


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Doestic Supply -ligation "esternArea Supply !roects

@

(

2

1

1 Dry Gas 2 #


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Doestic Supply -ligation #astern Area Supply !roects

6


7/29

Analysis of Stranded Gas in the 'ast

A signi+cant aount of gas is stranded currently in the #ast ainlydue to infrastructure and the delays in *I!! po)er plants

7


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Koko Port

Bonny LNG

Escravos

Ob/Ob

Oben

Utorog

Egbin

OlorunshogoOmotosho

Ihovbor

Geregu

Afam

Delta IV

Abuja

Kaduna

Calabar

Map showing critical #nfrastructures

!

Sapele


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(estern Networ) *ipeline System

'"*S A 'scravos to (arri e$pansion

from &++mmcf/d to ,++mmcf/d (ill allow immediate addition

of -+mmcf/d from 'scravos Due end .+

"ooping '"*S C Doubling capacity to .bcf/d from

(arri to lagos Due August .+. *ipes e$pected in October

Olorunshogo *ermanent "ine .01permanent line to Olorunshogo! 2ecent contract approval by Mr! * and

contractor being mobili%ed! Due Apr

.+. (ill address pressure problem at

Olorunsogo

"


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EIT

'onny **G

Fuo

Alscon

I-o!o)er

6ala-ar*I!!

nice6eent

Io $iver

*G6a

ndo!ipe

line

-ig-o

Alaoi*I!!

A-a Industries

*otore

Indoraa

-iafu-ri;o

-ite-eta

$uui*!2

Ala;iriGTS 1

GTS(6a)thorne

6hannel

#scravos

-en

Geregu*I!!

Aao;uta

#!S 1

#!S 2

Aa

o;uta

D9ano

BA99C

6ala-

arDAao;utaB6

A!C

#g-in

lorunshogo

otosho

9o;o Gas

Industrial !ar;

I-adan

Je--a

-@

$

so

'$isting Gas Source

'$isting *ipeline System

Ongoing/*lanned *ipeline system

Legend

*ower *lant

#ndustries


11/29

ngoing !ipeline !roects #!S!hase 1

##

3ori/ontal Directional Drilling peration

across "arri 'enin #


12/29

ngoing !ipeline !roects Alaoi,lorunshogo

#2

!ipe stac;ed on Site

Hoading pipe on site

$" 6learing


13/29

$oadap to Securing Alternative7unding for !ipelines

Assess !ipelineTari

$evie) TariAorda-ility

$evie)revenue

securitisation

Source forInvestors

Secure7inancial6losure

Assessment ofpipeline tarirequired to make3rdparty nancingviable this studynow completed byNNP

!ngagement ofstakeholders "e#g#N!$% onaordability oftari andimplication formedium&term'()*

hecking ofpossible tarirevenuesecuritisation tomake 3rdpartynancingbankable

$oad show toattract investors +nanciers, selectionof willingnanciers+investors

-nvestors securenancial closure

Description

Sept 2011 Dec 2012Jun 2012Jan 2012Dec 2011

#3


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Gas to !o)er Supply utloo;

#4


15/29

*e) Gas Sources of Gas to 'ridgeGap

*e) sources of gas, hitherto not considered for doestic ar;ete.g. -ringing oshore !S6 gas to shore, are -eing evaluated. Thiscould add (00?00 scfd -y 2011K

3o)o

1

2

#rha 'osi & .evelopment of oshoreprocessing plant with oshore pipelineto transport about /00mmscfd of gascurrently being re&in1ected to thewestern P2 in oko#

6A8A6 yo 7ield Developent 2ollowing options are being looked tomoneti4ed the currently re&in1ected 500&600mmscfd gas in *yo eld 7

a# *shore pipeline from *yo to

the western P2 in okob# *shore pipeline to !8P9 via

hevron *kan gas processingplant

c# *shore pipeline to *::9

1

2

#5


16/29

6onclusion

"e have an ena-ling policy frae)or; is inplace to support critical ass of gas supplydevelopent for the po)er sector

4ery good progress -eing ade in developentof a ro-ust gas grid that )ill ena-le rapidgro)th of supply fro diverse sourcesincreasing the liFuidity of supply

8ediu ter outloo; is proising and po)ersector investors can -e assured of supply

#6


17/29

A!!#*DI5

#7


18/29

Changing *ower Demand

#!

verv e) o t e ger an as


19/29

verv e) o t e ger an asIndustryGas $esource 'ase

200

(00

00

L00

1,000

1,200

1,(001,00

1,L001,680

1,046

899

265 263 245199 187 176 159

!roven *atural Gas $eserves, 2010

Trillion cubic feet

Sor!e" EU Energy Porta$% &rans'arency (nternat)ona$* 2011

Report on Oil and Gas Companies

*igeria has a huge econoic potential trapped in this vast naturalgas resource

,++4C5 6ndiscovered *otential

#"


20/29

#na-ling Sector !olicy Stiulating Supply

To support the agenda, a set of ena-ling policies )ere approved -y3is #


21/29

Strategy Aggregator 6opany>Gas Aggregation 6opany *igeriaBGA6*C

Gas Aggregation Company

Nigeria 7GACN8 Contact

Details9

Office9 :; Malcolm 5raser

Street Aso)oro Abu?=+0?

'mail9 info@gacnnigeria!com

GA6* )as esta-lished to anage the Doestic Supply -ligations 7acilitate gas access and aggregation of gas pricing

2#


22/29

Status of 8aor Infrastructure!roects

22


23/29

'astern Networ) *ipeline System

6opletion of the *! pipeline in 2012 )ill unloc; stranded gas fro 8!*

B100cfdCM *A6 #-ocha B?0cfdC and T#!*G B0cfdC, -ringingthe to -ig-o *ode hu- fro )here Alaoi and other #astern !o)er plantscan -e supplied

23


24/29

'astern Networ) *ipeline System

24


25/29

ur eorts in !o)er are focused on eeting a proected @.? -cfdof gas deand -y over @0 e


26/29

26

"as created to anage Doestic Gas Supply o-ligationsvolues

7irst point of contact for Gas 'uyers to access gas for

doestic ar;et use

!riary ai

6oordinate and anage )holesale gas supply fro Gas

!roducers to eligi-le Gas !urchasers )ithin *igeria

#nsuring a -alanced gro)th of all critical sectors of the econoy>

!o)er, Gas 'ased Industries and ocal Distri-ution 6opanies

6onduct due diligence assessent on eligi-le Gas 'uyers

Allocate availa-le gas fro the DS to credi-le -uyers

successful on assessent

$ole of GA6* in Doestic Gas 8ar;et


27/29

27

Due Diligence General !rocess


28/29

2!

Map showing critical #nfrastructures

2!


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Critical *ipeline *ro

power sector retreat presentations - jan 20-21 2012 - nnpc

Documents

doestic gas

igeria gas

gas strategy

dry gas

aount of gas

isting gas source

analysis of stranded

small flared gas