Romania as Future Gas Hub for Europe

Transcription

1 Member of ILF Group Romania as Future Gas Hub for Europe Dr. Chandrasekhar Ramakrishnan, Matthias Ramharter

2 Agenda Company Introduction The World Gas Market Prospects for Romania Historical Development and Comparison Romania s Potential Success Factors Outlook Romania 2025

3 Tecon Engineering TECON at a Glance Established in 1985 within OMV Group, 1997 registration as TECON Since 2007 in Romania Headquarters in Austria More than 300 employees worldwide Offices in Central, Eastern, Northern Europe, MENA, Latin America Part of ILF-Group (EUR 203 Mio turnover in 2013) Main Business Areas UPSTREAM REFINING PETRO- CHEMISTRY POWER- PLANTS

4 Tecon Engineering Services Consultancy Design and planning Procurement Construction supervision Commissioning / Start-up Project management Special services PROJECT MANAGEMENT CONSULTANCY DESIGN AND PLANNING PROCUREMENT CONSTRUCTION SUPERVISION START-UP Master plan Feasibility study Economic feasibility study Preliminary planning Conceptual design Permit application design Construction design Tendering Quality surveying procedure As-built Personnel training Award ofcontract documentation Operation manual Material Procurement Construction cost tracking and invoice approval Maintenance manual process Acceptance SPECIAL SERVICES Geology and hydrogeology Design of load-bearing structures Telecommunications Geotechnical engineering and soil mechanics Information management and GIS Safety and risk management Urban and environmental planning Automation and SCADA Financial analysis and institutional strengthening Project development page 4

5 Main Topic ROMANIA is a future Gas Hub of Europe!! page 5

6 World Natural Gas Market 4. Canada: 143,100,000,000 m³ 7. Norway: 114,700,000,000 m³ 2. Russia: 669,700,000,000 m³ 1. USA: 681,400,000,000 m³ 40. Romania: 10,630,000,000 m³ 3. Iran: 162,600,000,000 m³ Source: CIA

7 Where is Romania heading???

8 Where is Romania heading??? NORWAY

9 Country Comparison Norway Romania Area 323,802 sq km 238,391 sq km Population 5,147,792 21,729,871 Coastline 25,148 km 225 km Proven Gas Reserves (2013) 2.07 Tcm Bcm Natural Gas Production (2012) Bcm Bcm Natural Gas Consumption (2012) 5.51 Bcm Bcm Production - Consumption Bcm Bcm Gas Transportation Network 8,044 km 3,726km Source: EIA, CIA

10 Historical Statistics Gross Natural Gas Production (Billion Cubic Feet) Proved Reserves of Natural Gas (Trillion Cubic Feet) , ,0 70, , Norway Romania 50,0 40,0 30,0 20,0 10,0 Norway Romania 0 0,0 Source: EIA

11 Romania's Estimated Potential Black Sea 600 Bcm Estimated Reserves Shale Gas 1.4 Tcm Estimated Reserves = 2 TCM Additional Romanian Reserves This is slightly more than:

12 Romania's Estimated Potential 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 Estimated vs. Proven Reserves (Billion Cubic Feet) Norway Romania Romania + Black Sea Black Sea + Shale Source: Own Design, modified data from EIA

13 Offshore Gas Development Gas discoveries in the Romanian Black Sea shelf Domino 1: Exxon-Petrom (42-84 Bcm) Ana and Doina: Sterling (10 Bcm) Olimpiskiyi: Petroceltic (>10 Bcm) Lebada East: Petrom (7 Bcm) Lebada West: Petrom (6 Bcm) Sinoe Pescarus: Petrom (1 Bcm) Eugenia 1: Sterling (?)

14 Offshore Gas Development Domino 1 Highlights 1 st Deep Water well drilled in the Romanian Black Sea (930m) 72 m of net gas pay and around Bcm discovered Shareholders EXXON Mobil / OMV Petrom Domino 2 drilling started in July 2014 (around 800m waterdepth)

15 Shale Gas Development Currently three countries producing commercial amounts of shale gas: Source: EIA

16 Shale Gas Development In Europe: Biggest reserves estimated to be in France, GB, Poland and Romania Explorational drilling ongoing in Poland Licenses granted in Romania Source: EIA

17 European Gas Grid 2013 Bucharest

18 European Gas Grid 2013 Excerpt from 2010 Presentation at Romanian Gas Forum Bucharest

19 Gas Quality Comparison Romania and EASEE Excerpt from 2009 Presentation at Romania Gas Forum Parameter Unit Romania EASEE Wobbe Index kwh/m Rel. Density m3/m Total S mg/m3-100 max. 30 H2S + COS mg/m3-6.8 max. 5 RSH mg/m3 - - max. 6 O2 mol % max CO2 mol % - 8 max. 2.5 Total Sulphur 100ppm CO 2 Content 8% H2O DP C at 70 bar (a) HC DP C at 1-70 bar (a) Heating Value

20 Success Factors for Future Gas Development Success Factors North Sea Black Sea Know-How > 7,000 Wells Drilled < 100 Wells Drilled Experience > 40 years < 5 years Equipment Distribution Network Hundreds of Rigs specially designed for North Sea 8,044 km Gas Pipelines (Power Cables to GB, DE, BE) Very limited number of Rigs 3,726km Gas Pipelines (mainly controlled by Russia) Political Framework Open System Regulated/Recently Opening

21 Conclusions - Road to Success Establish a legal and fiscal framework which facilitates Offshore and Shale Gas E&P activities Push interconnectivity with neighboring states and EU Gas Grid This will promote investment of IOCs in E&P and infrastructure and in consequence there will be an increased number of drilling activities. Specific Know-How and Experience will grow and could result in: Energy Self-Sufficiency and Net Gas Exports

22 Outlook: Romania : ROMANIA will be a Gas Hub of Europe!! Gas Independence Through Black Sea Developments and Shale Gas Production Gas Hub for Central & Eastern Europe Domestic production Imports from caspian region via interc TAP/TANAP LNG imports Third net gas exporter in EU Along with NL and DK

23 THANK YOU FOR YOUR KIND ATTENTION!!! Head Office Leobersdorf Austria Office Vienna Austria Office Graz Austria Office Ploiesti Romania Office Riyadh Kingdom of Saudi Arabia TECON Engineering GmbH Aredstraße 13 A-2544 Leobersdorf Tel.: + 43 (22 56) Fax: + 43 (22 56) office@tecon.eu TECON Engineering GmbH Würtzlerstraße 3 A-1030 Vienna Tel.: + 43 (1) Fax: + 43 (1) office@tecon.eu TECON Engineering GmbH Dietrich-Keller-Straße 20 A-8074 Raaba Tel.: + 43 (512) Fax: + 43 (512) office@tecon.eu TECON Engineering SRL 16 Negru Voda Str. RO Ploie sti Tel.: + 40 (344) Fax: + 40 (344) romania@tecon.eu ILF-Tecon & Partners Consulting Engineers PSC P.O. Box 10311, Main Olaya Street SA Riyadh Tel.: (11) Fax: (11) office@ilftecon.com