The Galsi project. The Galsi project Presentation

Transcription

1 The Galsi project The Galsi project Presentation

2 Index The Galsi project Technical figures Strategic value Project phase SLIDE 2/19 / JANUARY 2010

3 The Galsi project who we are Galsi was formed in 2003 as a company entrusted to design and build a gas pipeline for the import of natural gas from Algeria to Italy via Sardinia SLIDE 3/19 / JANUARY 2010

4 The Galsi project mission TO PROVIDE TO PROVIDE A NEW INFRASTRUCTURE FOR GAS SUPPLY TO THE COMMUNITY AT COMPETITIVE CONDITIONS WITH THE AID OF THE BEST TECHNOLOGIES RESPECTFUL OF THE ENVIRONMENT AND INTERNATIONAL SAFETY STANDARDS With its activity Galsi aims at:» Contributing to the economic progress and well-being of the community ensuring the security and reliability of energy supply SLIDE 4/19 / JANUARY 2010

5 The Galsi project Galsi shareholders Sonatrach 41,6% 20,8% Galsi S.p.A is supported by a strong group of shareholders: HERA TRADING 15,6% 11,6% 10,4% SONATRACH 41,6% N 3 EXPORTER OF NATURAL GAS WORLDWIDE N 2 EXPORTER OF LNG AND LPG WORLDWIDE EDISON 20,8% N 2 ELECTRIC AND GAS UTILITY IN ITALY ENEL PRODUZIONE 15,6% N 3 COMPANY IN THE EUROPEAN ENERGY MARKET SFIRS 11,6% 93% CONTROLLED BY THE REGION OF SARDINIA GRUPPO HERA 10,4% N 2 LOCAL UTILITY IN ITALY SLIDE 5/19 / JANUARY 2010

6 The Galsi project agreement with Snam Rete Gas The Galsi project includes the international undersea section and two Italian sections. National section On 30 September 2008 Galsi e Snam Rete Gas signed an agreement which sets out the conditions for the construction of the Italian section: International section HERA TRADING Existing Pipeline GALSI national section GALSI international section Compressor station Galsi will develop the engineering (FEED) and obtain the main permits and authorisations required in coordination with Snam Rete Gas Galsi will built the international section of the pipeline and manage the gas transport activities from Algeria to South Sardinia Snam Rete Gas will build the national section of the pipeline and subsequently manage the gas transport activities for this section. SLIDE 6/19 / JANUARY 2010

7 The Galsi project timeline 2001 Sonatrach, Enelpower and Wintershall sign a protocol of agreement for the constitution of a company entrusted to develop the feasibility study of a gas pipeline from Algeria to Italy via Sardinia 2002 Eos Energia (Hera group) and Edison sign the protocol and join the project 29 January 2003 Galsi S.p.A is set up in Milan technical, economic and legal feasibility study is developed 20 December 2006 the feasibility study is completed. Galsi shareholders decide to proceed with the development of the project 2007 project engineering (FEED) and detailed marine survey begin SLIDE 7/19 / JANUARY 2010

8 The Galsi project timeline 7 November 2007 Snam Rete Gas and Galsi sign a memorandum of understanding (MOU) for the construction of the Italian section of the Galsi pipeline 14 November 2007 The Prime Minister of Italy and Algeria sign in Alghero a bilateral agreement which confirm and define the engagements of both governs for the construction of the Galsi pipeline 19 February 2008 Wintershall sells its stakes in the project to the other GALSI consortium members 31 July 2008 Galsi formally opens the authorisation procedure for the construction of the Italian section of pipeline 1 August 2008 A decree by the Ministry of Economic Development officially includes the Galsi project in the Italian National Pipeline Network 30 September 2008 Galsi and Snam Rete Gas sign the definitive agreement for the construction of the Italian section of the pipeline 2009 The FEED is completed and further environmental studies are developed for the authorisation procedure SLIDE 8/19 / JANUARY 2010

9 SLIDE 9/19 / JANUARY 2010 Technical features

10 Technical features pipeline route Landfall in Tuscany: Piombino Measurement and reduction substation Northern landfall in Sardinia: Olbia Compressor station Southern landfall in Sardinia: Porto Botte Measurement and reduction substation Landfall in Algeria: Koudiet Draouche Compressor station SLIDE 10/19 / JANUARY 2010

11 Technical features Capacity: 8 bmc/y Algeria Sardinia: 285 km Pipe diameter: 1x26 Water depth: 2824 m Onshore Sardinia: 272 km Pipe diameter : 1x48 Sardinia Tuscany: 280 km Pipe diameter :1 x 32 Water depth: 878 m Gas delivery: 2014 Cost: 3 billion Porto Botte Olbia Koudiet Draouche Piombino SLIDE 11/19 / JANUARY 2010

12 SLIDE 12/19 / JANUARY 2010 Strategic value

13 Strategic value of the project It will improve the security of gas supply ensuring the transportation of 8 bcm of Algerian natural gas in the Italian and European markets It significally contributes to the growing demand of natural gas in the European Union It is an alternative source of competition directly aimed at the centre of Italian demand It will allow the upgrading of Sardinia energy infrastructure which up to now lacks a national gas distribution network and it will encourage a consequent economic growth It has been included by the EU among the 5 priority assets for the development of the Trans-European energy network It will contribute positively at the Kyoto protocol implementation for the safeguard of the environment SLIDE 13/19 / JANUARY 2010

14 Strategic value of the project Gas demand EU 30 (Bmc) 563 CAGR 1.1% -1.7% Import gap (Bmc)? Import ~47% Import ~62% -64% 267 Others Nigeria Algeria Russia gas import Import gap 2020 gas import Domestic production Import SLIDE 14/19 / JANUARY 2010

15 Strategic value of the project Present system Future integrated system SLIDE 15/19 / JANUARY 2010

16 Advantages for local economic systems Sardinia's energy procurement mix is dominated by oil (74%) and coal (23%), the most polluting of the fossil fuels. 44% of its energy is consumed by industry, in particular the high energy-intensive sectors (40%) The Galsi pipeline will grant:» availability of natural gas for domestic and industrial use and for the production of electricity through further development of the distribution network» positive effects for local entrepreneurial opportunities both in the phase of the pipeline construction and in the management of the gas pipeline infrastructure and network» participation of the Region in a strategic project for the supply of natural gas in Europe SLIDE 16/19 / JANUARY 2010

17 Advantages for local economic systems The Galsi Pipeline has been included in Tuscany's Regional Energy Plan and recognised as strategic and essential for the fulfilment of the region's future energy goals The Galsi pipeline will bring several advantages for Tuscany such as: positive impacts for the region's economy and social development diversification of energy sources providing an incentive for methane and a lower use of the more polluting fossil fuels greater security of energy supply for Tuscany incentive to switch from oil to a more eco-sustainable system SLIDE 17/19 / JANUARY 2010

18 SLIDE 18/19 / JANUARY 2010 Project phase

19 Project phase June 2010 PRE-FEED FEASABILITY STUDY FEED PERMITTING FINAL INVESTMENT DECISON (FID) Development of the Onshore detailed engineering and Permitting activities SLIDE 19/19 / JANUARY 2010