Building and Creating LNG Demand in Asia

Transcription

1 1 JOGMEC Techno Forum 2018 Building and Creating LNG Demand in Asia Kentaro Horisaka Tokyo Gas Co.,Ltd. 27 November 2018

2 2 Contents 1.Tokyo Gas Company Profile 2.Increasing Role of LNG in Asia 3.LNG Infrastructure and Demand Creation 4.Tokyo Gas Activities in Asia

3 3 Contents 1.Tokyo Gas Company Profile 2.Increasing Role of LNG in Asia 3.LNG Infrastructure and Demand Creation 4.Tokyo Gas Activities in Asia

4 1.Tokyo Gas Company Profile Corporate Information Company Name Tokyo Gas Co., Ltd. Established in 1885 Number of Employees 17,138 (Consolidated as of March 2018) Credit Rating Aa3 (Moody s) AA- (S&P) Business Area Tokyo Metropolitan and surrounding Kanto Region Number of Customers 11.7 million (As of March 2018) Net Sales USD 15.7 billion (FY2018, USD = 110 JPY Nagoya 名古屋地域 GDP of Japan (FY2011) Total $4.5Trillion Tokyo 大阪地域 Osaka 4

5 1.Tokyo Gas Company Profile Our Business Domain - Our business domain includes upstream development, LNG transportation, downstream business such as LNG regasification, pipeline transmission and distribution, and gas and power retail. - Our strength lies in the experience and the expertise throughout the entire LNG value chain. 1,450,000 tons equivalent* 14 million 3,845,000 kl Overseas Upstream Upstream and and Downstream Downstream Businesses Businesses Gas Transmission and Distribution Procurement Overseas Upstream and Downstream Transportation Businesses 15,720 million m3 Production Overseas Upstream Overseas Upstream Energy And and Downstream and Downstream Solutions Supply Businesses Businesses as of ,252 mil. m3 14% 3,466 mil. m3 22% 7,293 mil. m3 46% 2,709 mil. m3 17% High-pressure pipeline Low-pressure pipeline (polyethylene pipe) Gas intelligent meter

6 1.Tokyo Gas Company Profile The trend of TG gas sales volume, the number of customers The number of customers has steadily increased and exceeded 11 million in FY2014. Gas demand has grown as a result of the effort on the development, diffusion of gas appliances and solution based marketing. Billiom m3 The trend from 1964 to 2016 Million customers wholesale power plant industrial use commercial use residential use The number of customer 6

7 7 Contents 1.Tokyo Gas Company Profile 2.Increasing Role of LNG in Asia 3.LNG Infrastructure and Demand Creation 4.Tokyo Gas Activities in Asia

8 2. Increasing Role of LNG in Asia Primary energy consumption will continue to grow in Asia Total primary energy demand by region,

9 2. Increasing Role of LNG in Asia China and India are the world largest consumers in mid Energy consumption is also on the rise in ASEAN countries. Primary energy consumption in selected countries and regions Source: IEEJ Outlook

10 2. Increasing Role of LNG in Asia With the demand expected to increase beyond supply capacity of domestic gas resources, many Asian countries are looking to develop or increase LNG import capacity, creating a sizable demand for LNG in the region. Source:IEA Southeast Asia Energy Outlook

11 2. Increasing Role of LNG in Asia Examples of Asian countries that have already introduced LNG import or planning to introduce LNG import. Pakistan India Bangladesh Sri Lanka China Thailand Indonesia Korea Myanmar Vietnam Japan Taiwan Malaysia Singapore Philippines The situation of LNG introduction Already introduced Under Planning 11

12 2. Increasing Role of LNG in Asia Natural gas consumption in Asia continues to increase. By region By sector Source: IEEJ Outlook

13 2. Increasing Role of LNG in Asia Additional LNG supplies are expected to come from various parts of the world. With more suppliers and buyers of LNG, further increase in liquidity of the LNG trade can be expected. Source:IEEJ Global LNG Outlook 13

14 14 Contents 1.Tokyo Gas Company Profile 2.Increasing Role of LNG in Asia 3.LNG Infrastructure and Demand Creation 4.Tokyo Gas Activities in Asia

15 3. LNG Infrastructure and Demand Creation Downstream demand creation will allow effective and efficient use of the newly invested LNG infrastructure. Gas Wells Development Gas Liquefaction LNG Transportation LNG Unloading, Storage, Regasification, etc. City gas Distribution Services to Customers International LNG trading Regasification, Distribution, Marketing 15

16 3. LNG Infrastructure and Demand Creation Typically, the demand drivers are gas fired power generation and industrial use. Natural gas can also be utilized in the district wide use of energy including district heating and cooling. <Power plant> <Industrial use> <DHC> 16

17 3. LNG Infrastructure and Demand Creation There are several modes by which the LNG can access the location of demand from the LNG receiving terminal. Lorry LNG Tank Lorries Gas Pipeline Terminal Pipeline Ship Small Scale Ship 17

18 3. LNG Infrastructure and Demand Creation Value of natural gas increases when combined with energy efficient solutions and technologies (combined heat and power, efficient boilers, etc). efficient solutions promote use of natural gas More application (burning, heating, cooling, onsite power gen, etc) for gas will lead to greater demand for gas. Policies/regulatory incentives can also promote the use of gas. Ex.) Air Pollution Control Law (1968, Japan) 18

19 3. LNG Infrastructure and Demand Creation Natural gas is easy to handle (in comparison to coal or oil products) and conversion to gas from other energy products can add values on top of the energy efficiency and cleanliness. tanks Gas is introduced Efficient Land Use Before After 19

20 3. LNG Infrastructure and Demand Creation In demand creation It is important to promote the many advantages of natural gas use (environmental friendliness, energy efficient solutions, wide application, ease of use, etc.) A good understanding of the policies, characteristics and needs in each market is essential. 20

21 21 Contents 1.Tokyo Gas Company Profile 2.Increasing Role of LNG in Asia 3.LNG Infrastructure and Demand Creation 4.Tokyo Gas Activities in Asia

22 4.Tokyo Gas Activities in Asia Our activities(malaysia) Gas Malaysia Tokyo Gas is one of the founding members of Gas Malaysia (gas distribution company). Gas Malaysia has experienced significant growth since its inception in GMEA (Gas Malaysia Energy Advance) JV between Gas Malaysia and Tokyo Gas affiliate. It has been providing energy saving service for industrial customers since Gas Malaysia supply area Co-generation system Industrial boiler Establishment of GMEA 22

23 4.Tokyo Gas Activities in Asia Our Activities(Vietnam): Establishment of LNG VIETNAM In July 2016, Tokyo Gas Asia established LNG VIETNAM JSC together with PetroVietnam Gas and Bitexco Group of Companies aiming to conduct business activities such as LNG procurement, LNG sales and LNG receiving terminal construction and operation. Assignment of Board Members of LNG VIETNAM LNG terminal in Japan 23

24 4.Tokyo Gas Activities in Asia Our Activities(Vietnam): Investment in PVGD In July 2017, along with equity interest acquisition, Tokyo Gas Asia and PVGD have agreed upon a strategic alliance. Signing ceremony of strategic Alliance Agreement Distribution area 24

25 4.Tokyo Gas Activities in Asia Our Activities(Indonesia): Investment in PRA In October 2017, along with equity interest acquisition, Tokyo Gas Asia and Development Bank of Japan through a newly established joint venture, have acquired 33% shares of gas distributor PT Panji Raya Alamindo (PRA). Picture from Closing Ceremony Distribution area 25

26 4.Tokyo Gas Activities in Asia Our activities(philippine):to express the interest to develop LNG value chain Tokyo Gas Co., Ltd. submitted a Letter of Intent to Department of Energy of the Philippines on 30 October 2017, to express the interest to develop LNG value chain by building its first LNG terminal in the Philippines. 26

27 27 4.Tokyo Gas Activities in Asia Our activities(thailand):investment in Gas distribution company In Jan 2018, Tokyo Gas Asia and Mitsui through a newly established joint venture have acquired 30% shares of gas distributor GWHAMT in an industrial park. Bangkok Hemarat 2 Hemarat 4 (Industrial Park)

28 Thank you for your kind attention. 28