Corporate Brochure Q2 2019

Transcription

1 Corporate Brochure Q2 2019

2 2 Purpose Why target mid-stream SSA? Why target MGA? Monetizing Gas Africa (MGA) maximizes commercial availability of natural gas by increasing infrastructure in Sub-Saharan Africa. Specifically, we: unlock the vast supply of gas reserves; 50% Global gas consumption is expected to increase by 50% to 2040 (1.5% pa) Focused Purpose built company focused on midstream gas infrastructure meet growing demand for cleaner energy and Gas is expected to make up Leverage global expertise feedstocks; and 23-25% of energy mix and funding direct capital to build infrastructure in Africa connecting suppliers to consumers. Ratio of Upstream to Mid- Management team with MGA links gas markets by investing in infrastructure: African gas to African markets and global gas markets, and global gas to African markets. 800:<8 stream operators in Africa Significant stranded gas reserves in Africa People requisite operational experience in Africa Gas project experience Why Natural Gas? 600 Tcf of Reserves, with 3 diverse, exclusive deals Natural gas is widely regarded as the transition fuel to a lower carbon energy production. 600 less than 10% monetized 600 million Africans without electricity Deals currently being worked Deal pipeline exceeds 60 Natural gas can be used to produce heat and electricity; as a feedstock in manufacturing; and can also support renewable energy production. Globally, natural gas reserves are widely dis- $100bn Spend on gas-to-power electricity in Sub-Saharan Africa to 2040 Business 48 months in development Seed funded by founders persed, and technological advances have dramatically expanded access to unconventional sources. 30% of total required 8 professionals in team

3 3 Executive Team Rodney J. MacAlister, Chief Executive Officer 25 years with ConocoPhillips in business development, mostly in Africa; General manager in Congo; Head of the Washington DC office Former General Manager for VAALCO Energy, Gabon. John Peffer, Chief Operating Officer Served as President and General Manager in Mozambique and Subsurface Manager in Algeria for Anadarko Led multi-disciplinary teams on project execution on natural gas projects Advisors Mark Akers, Chief Financial Officer Former Chief Financial Officer at New Age African Global Energy from its creation, a large Oil & Gas company present mostly in Sub-Saharan Africa Non-Executive Trustee Director for the Premier Oil plc Retirement and Death Benefits Plan Ebrahim Takolia, Chief Corporate Development Executive management experience in the Oil & Gas industry in Africa, including as CEO of industry body for Oil & Gas Strategy and corporate finance experience inmanagement and engineering consulting Technical Team MGA has assembled a team of technical professionals to support the execution of its strategy: Economics and financial modelling; Environment, health, safety and sustainability; Engineering (gas processing and flaring); and Human resources. Investment and Development MGA lies positioned at the convergence of four vital drivers of progress: finance; development; energy and infrastructure. Nicholas Smith Served as Chairman and non-executive director on the boards of multiple companies and funds Former Chairman of Ophir Energy plc, a company with a portfolio of assets in Africa Alex Kulpecz Executive midstream experience as former MD/ EVP for RD Shell responsible for Africa, S America, Russia Led NLNG Trains 1-2, Transredes-Bolivia-Brazil pipeline, Comgas Gas Distribution, and gas-topower Projects A team with more than 200 years collective experience working on the ground in Africa, with an understanding of the opportunities and challenges of managing complex assignments and projects. An Investor, Operator and Developer of Gas Infrastructure Assets in Africa

4 4 What we do Context Action MGA invests in the infrastructure to connect demand with supply by engaging in the following activities: Monetise gas: monetize Africa s vast natural gas resources and link global gas markets to African markets. Link Upstream to Downstream: facilitating production, transport, processing, storage conversion and consumption of gas. Project Assessment and Due Diligence: continuous assessment of potential projects to invest in. Knowledge Development: insights and strategic understanding of gas infrastructure. Investment in Projects: leading and/or joining ventures that meet defined selection criteria; i.e.: sufficiently de-risked, with potential for attractive, stable returns and operated under top standards of governance. Asset Optimization: valuation of synergies and efficiencies in project portfolio to ensure optimal returns, and to achieve strategic objective to build an African gas infrastructure champion. African gas is abundant: proven reserves We put gas to work across Africa by total over 600 trillion cubic feet, with investing in the infrastructure that links significant further potential to add to gas resources to consumers. reserves. We optimize infrastructure of gas, energy, power, fuels, materials and capital Less than 10% of Africa s gas reserves are monetized. Much of the through our skills and experience in gas that is produced global energy and on-thedaily is wasted by ground history in Africa. flaring. We develop intellectual capital around gas 22 African countries (out of 55) have gas technologies and infrastructure - for com- reserves, and exploration for gas continues across petitive advantage and the continent. the greater good. LNG has made gas fungible, enabling a We help power the global market to develop that will grow growing demand for substantially, with Africa as a key player. energy in Africa by providing infrastructure which enables a Consumer demand is expected to route to market for Africa s significant grow by as much as 40% by gas resources. MGA values include openness, transparency, and good governance, which are the cornerstone of the business and guide its acquisition and development of projects with scrupulous ethics and integrity.

5 5 Returns Unlike higher-risk Upstream investments, gas midstream assets are expected to generate greater than 18% US dollar Internal Rates of Return (IRRs), depending on the risk profile, over a long term stable horizon, through: Annuity income streams from tolling and tariffs on moving molecules and electrons; and Capital Gains from portfolio management and optimization. Project Pipeline There are more than 3000 mapped gas projects across Africa and MGA s list of potential investments under evaluation now numbers more than 60. (Graphs derived from analysis of Illustrative Portfolio using DCF) Total Projects 61 Opportunity Type: Private 57 Opportunity Type: Public 4 Status: Operating 26 Status: Brownfield (can be both) 14 Status: Greenfield 35 Infrastructure Type: Pipeline 37 Infrastructure Type: Power 25 Infrastructure Type: LNG/ FLNG / FSRU / FPSO 20 Infrastructure Type: CNG 7 Infrastructure Type: Fertilizer 4 Infrastructure Type: GTL 5 Infrastructure Type: Process Plants 6 Targeting strategy Due to the size and scale of the envisaged infrastructure, MGA will initially focus on certain African countries based on the following selection criteria: Gas Master Plan: a strategy to incorporate gas into the energy mix. Supportive Legislation: current or envisaged legislation that supports the gas industry. Midstream Infrastructure Prioritized clear public government and DFI commitment to infrastructure projects. Supply Virtual Pipeline / Piped / LNG: sources of local gas or ability to import or export gas. Energy Demand (electricity and / or direct gas) and Price: a market for gas that will support infrastructure investment at a sustainable price. Ability of Consumers to Pay for Energy: a growing industrial / commercial and middle class population with purchasing power. Electrical Power Transmission Capacity: the ability to move electrical power from generation areas to demand centres.

6 6 Gas Demand Africa s proven gas reserves exceed 500 trillion cubic feet, with less than 10% currently being monetized. Exploration and production over the next years makes a robust project pipeline inevitable. Infrastructure Demand There is an imbalance between an overinvested upstream space and an underinvested midstream space., resulting in 90% of gas reserves being un-monetized. Underinvestment in Infrastructure in Midstream and Downstream Projected growth of natural gas supplies to global and domestic markets will require billions of dollars of investment in infrastructure across the gas value chain. MGA s investments will focus on pipeline, storage and other distribution infrastructure, plus LNG facilities, and supplies to power, GTL, CNG and fertilizer plants. Saturated upstream with many stranded deposits due to limited or no infrastructure Significant investment drivers include: market growth from the electricity generation, transportation and industrial sectors, the potential to connect resources and LNG supplies to international and African markets, and government incentives such as Power Africa. While the oil majors and other industry players will invest in some of the required infrastructure, there is a need for a dedicated company to invest or co-invest in infrastructure to create a gas infrastructure champion. The scenarios presented have been produced by using ICF s widely-used Gas Market Model (GMM). Electricity Demand Some of the fastest growing economies in the world are in Africa as a result of the growing African middle class, but this growth is unsustainable without electricity. Gas-toelectricity offers African countries the quickest route to significant distributed electricity close to demand centres to support future economic growth and development.

7 7 Global Trade in Gas (Bcm) Africa Energy Outlook 2040 Global Move to Natural Gas Global Gas Consumption to 2040 (Bcm) Energy consumption grows by 3.6% p.a. with energy use in power generation growing by 4.4% p.a. Growth accelerates markedly compared with the previous 20 years (+2.8% p.a.). Consumption growth is strong across all sectors: buildings (+149%), industry and non-combusted uses (+139% each) and transport (+85%). By fuel and on a Mtoe basis, gas (+167 Mtoe), renewables (+156 Mtoe) and oil (+149 Mtoe) grow the most. Electricity demand almost triples by 2040, to reach 2306 TWh. In 2040 renewables have the largest share in the electricity generation mix (32%) followed by gas (30%) and coal and hydro (16% each). An environmentally friendly and efficient energy source, natural gas is the cleanest-burning conventional fuel, producing lower levels of greenhouse gas emissions than the heavier hydrocarbon fuels, like coal and oil. Historically, natural gas also has been one of the most economical energy sources. Natural gas fuels electric power generators, heats buildings and is used as a raw material in many consumer products. Natural gas is the ideal energy source to support renewable energy as it can make-up for lower-thanplanned output from renewable energy to balance the grid (mid-merit and peaking power plants). Natural gas and renewable energy are the only primary energy sources forecast to increase to Shares of Primary Energy by Fuel Type Billion toe Domestic energy production increases by 54%, driven by natural gas (+109%), renewables (+2795%) and coal (+36%) with a decline in oil (-12%). Source: BP Energy Outlook (@Feb 2019)

8 8 2018, Monetizing Gas Africa Africa Operating company: Monetizing Gas Africa (Pty) Ltd. Cape Town, South Africa US Office: Monetizing Gas Africa Inc. Washington DC, USA