GAIL GGSPL FACT SHEET 2013 GAIL GLOBAL SINGAPORE PTE. LTD. A wholly owned subsidiary of GAIL (India) Limited Efficient LNG ing
Who we are Incorporated in 2004, GGSPL is a wholly owned subsidiary of GAIL (India) Ltd. operationalized in May 2012. GGSPL is an independent trading company that participates in the global LNG markets. GAIL s Existing Business Segments Natural Gas Marketing Core Business volume of 87 MMSCMD across 16 states in India (~70% market share) Natural Gas Transmission 11,000+ Kms of pipeline and plans to add another 5500 Kms LPG Transmission Only company to operate LPG pipelines, with two major pipelines of length 2038 Kms LPG and liquid Hydrocarbons Operates seven plants mainly producing propane, pentane, naphtha and LPG Petrochemicals Produced ~420 TMT of petrochem in 2011 which mainly consists of HDPE/LDPE pellets E&P 27 blocks ( including 2 Overseas, operatorship in 2), 1 CBM Block Alliances, Subsidiaries & JVs Gas based power Ratnagiri Gas and Power Station, Regasification capacity at Dhabol (5 MMTPA) Telecom & Renewables Renewables- 5MW solar plant, 113MW wind energy, Country wide telecom presence with 13,000 Km of optical fiber network $8.4bn Consolidated Revenue... $10.02bn Worth of Assets... $873.6m Profit... $7.61bn Market Cap... 3,937 Employees worldwide... Maharatna Recognition The 3rd & youngest company among all PSUs (Figures as per 2008-12) 1
GAIL presence across the world as GAIL (India) JVs and Subsidiaries Houston (USA) China Egypt India GAIL GGSPL Singapore GAIL Global (Singapore) Pte. Ltd. Other Global ventures of GAIL (India) Ltd. GGSPL Timeline 2004 2012 Incorporated in 2004 as a wholly owned subsidiary of GAIL (India) 2013 GGSPL set up as LNG trading company in May 2012 Set up as an independent entity to participate in global LNG markets 2
GAIL Subsidiaries, Affiliates & Joint Ventures SUBSIDIARIES (7) GAIL Gas APGDC (Andhra Pradesh Gas Distribution Corporation) KGGL (Kerala Gail Gas Limited) GAIL Global Singapore AFFILIATES (5) SEAGPL (South East Asia Gas Pipeline Company Limited) VMSS (Vadodara Mahanagar Seva Sadan) BCPL (Brahmaputra Cracker and Polymer Limited) GAIL Global U.S. A China Gas GSEG (Gujarat State Energy Generation Ltd.) KGGL (Kerala Gail Gas Limited) NATGAS Egypt JOINT VENTURES (12) IGL (Indraprastha Gas Limited) MGL (Mahanagar Gas Limited) BGL (Bhagyanagar Gas Limited) Tripura NG Co. Ltd. OPAL (ONGC Petro Additions Limited) MNGL (Maharashtra Natural Gas Limited) RGPPL (Ratnagiri Gas and Power Pvt. Ltd.) Green Gas Ltd. GAIL CHINA Gas Energy Holding PetronetLNG Central UP Gas Ltd Aavantika Gas 3
What we do GGSPL s presence across the LNG Value Chain: Being a part of GAIL (India) Limited, GGSPL has the added advantage of the entire access to the LNG Value chain including Liquefaction, LNG Shipping and regasification. Owing to GAIL s Long-term Sales purchase agreements (SPAs) with Cheniere Energy Partners, Dominion Cove Point and Gazprom, GGSPL has secured itself a diverse portfolio. Additionally, a MOU between GAIL & SCI assures shipping capacity and flexibility to ship our cargoes anywhere across the world Domestically, GGSPL has access to all GAIL facilities in India as well as those operated by Petronet LNG Ltd. The Terminals in India where GGSPL has access are mainly the Dahej Regasification Terminal, Dabhol LNG Terminal, the new terminal at Kochi and the Kakinada FSRU liquefied natural gas terminal The others among these in the GGSPL basket include a MOU between EDF Trading and GAIL to jointly acquire and develop upstream oil and gas assets in North America, and access to US Shale Gas assets through the joint venture agreement signed between GAIL and Carrizo Oil & Gas on a portion of the company s Eagle Ford Shale assets 4
Dominion cove, USA (2.3 MMTPA) GAS SOURCES Cheniere (3.5 MMTPA) Gazprom (2.5 MMTPA) 10 LNG Ships (proposed) for transporting 6 MMTPA volumes from Cheniere & DCP on FOB basis Shipping Corporation of India (SCI) and other LNG ship operators Dahej ( 10 MMTPA ) Dhabol ( 5 MMTPA ) Kochi ( 5 MMTPA ) FSRU ( Dec 2013 ) 5
How we operate Although GGSPL is a wholly owned subsidiary of GAIL India Limited, it is mandated to maintain clear and distinct set of activities to be performed. GGSPL is involved in various LNG Trading activities. GGSPL is a means to source spot cargoes for GAIL and trade in the long-term LNG Volumes to third parties. The GGSPL target market is the Far East, Central Asia and South America as well as South Asia/ India. Our Business Activities GGSPL engages primarily in the following activities: LNG Trading Our LNG trading activities focus on serving the LNG needs of customers in the Far East, Central Asia and South America apart from catering to the requirements of South Asian and Indian markets. The range of services offered by us include: Spot purchase and global market coverage Purchasing via short-term and mid-term contracts Wapping of LNG cargoes to optimize infrastructure requirements and portfolio balancing Risk Management We also propose to provide risk management solutions (subject to regulatory clearances) for our Indian clients. This includes: Transacting in financial markets for hedging short-term and mid-term exposures Structuring and purchasing futures, options, other vanilla derivative contracts and swaps in various energy markets LNG Shipping We charter LNG vessels to support our LNG trading activities and are also involved in wide range of shipping related activities: Consortium ownership / JV companies and Fleet Management Chartering vessels for FOB spot deals Entering into charter agreements to support mid-term and long-term LNG trading deals 6
GGSPL shall be trading GAIL s robust Long-term portfolio. Currently set to be the largest off-taker of US LNG. Existing Long Term Deals - 8.3 MMTPA Cheniere Energy Tenure & Type: 20 year deal on FOB basis Volume & Index: 3.5 MMTPA priced on Henry Hub Commencement: 2018 Dominion Cove Point Tenure & Type: 20 year deal on FOB basis Volume & Index: 2.3 MMTPA priced on Henry Hub Commencement: 2017 Deals Under Discussion USA Eastern Africa & TAPI Asset acquisitions in US shale gas East African LNG Gas sale purchase agreement for Turkmenistan Afghanistan Pakistan & India (TAPI) 7
GGSPL Business GGSPL Business: The company will be mainly involved in trading in the long-term GAIL LNG portfolio. GAIL s 20 year deal signed with Cheniere energy and another deal with Dominion Cove Point are the 2 existing Long-term deals apart from which there are a few deals in the pipeline. The main outlined or pivotal activities for GGSPL include LNG trading, LNG Shipping and Hedging. LNG TRADING SHIPPING Hedging LNG trading would primarily include Spot purchases, short-term and mid-term contracts while Hedging would be aimed at purchasing futures, options, other vanilla derivative contracts. The GGSPL Shipping activities would entail chartering LNG vessels to support GGSPL s LNG trading activities. LNG Trade Flow as per ZE Datawatch report on Shale Gas published in July 2012 8
GGSPL maintains full commercial and operational autonomy from GAIL through clear separation of activities GAIL (LNG Sourcing Activities) GGSPL (LNG Trading Activities) Business Model Other LNG Trading Cos. GGSPL GAIL s Volume underwrite Other LNG Trading Cos Suppliers. GAIL GGSPL GAIL s Downstream Customers Other LNG Buyers GAIL LNG Trading Process GGSPL is shortly being mandated for sourcing of spot cargoes for GAIL. GGSPL will trade GAIL s long-term LNG/Term flexible volumes to third parties Target Market GAIL will continue to act as aggregator for downstream companies in India. GGSPL target market is far east, Central Asia and South America apart from catering requirements of South Asia / India Spot LNG flows 9
THREE DIMENSIONAL PARTNERING OPPORTUNITY LNG Trading Shipping Infrastructure Optimization South Asian market access 10
GGSPL welcomes partners around three main areas LNG Trading Opportunity: Apart from Bidirectional MSPAs (Selling & Buying), GGSPL shall be taking various positions in the market for opportunities to trade spot cargoes with 3rd parties. Shipping Infrastructure Optimization: GGSPL will share excess shipping capacity to optimize ship utilization along with swapping LNG volumes to reduce shipping costs South Asian Market : Access to growth opportunities and a vibrant network within the South Asian natural gas markets will present an opportunity to build on existing relationships with major downstream companies 11
GAIL GGSPL GAIL GLOBAL SINGAPORE PTE. LTD. 43-01A, SUNTEC TOWER ONE 7, TEMASEK BOULEVARD, SINGAPORE-038987 TEL 006564306615/13 FAX 006564306614 PRESIDENT krsanjay@gail.co.in VP GLOBAL TRADE amit.singh@gail.co.in