contribution to regional gas market Mantas Bartuška, General Manager AB Klaipedos Nafta October 18th, 2016 1 Photo A. Kubaitis
AB Klaipedos nafta an oil product and terminal operator Traditional business Focus for global expansion 50+ years of oil product terminal operations Klaipeda terminal based on FSRU Independence reloading and bunkering station under construction in Klaipeda State fuel reserves transport and bunkering vessel project for the Baltic Sea terminal development and Advisory services 2
Billion people Trillion 2010$ Quadrilliomn BTUs Projections of global fundamentals indicate growth in energy demand Demographics GDP Energy demand 4 3 160 140 120 100 Rest of the World Key growth 1.200 1.000 800 Energy savings Rest of the World Key growth 2 1 0 OECD32 India Rest of the World 80 India 60 40 China 20 OECD32 0 2000 2020 2040 600 India 400 China 200 OECD32 0 2000 2020 2040 2010 2025 2040 World population grows 25%, from 7.2 to 9 billion over 2014-2040 India has nearly 1.6 billion people by 2040, passes China as most populous Economic growth drives increased need for energy Global GDP more than doubles over 2014-2040; developing countries lead growth Global demand for energy rises by 25% over 2014-2040, with all of the growth coming from the non-oecd. Demand could have more than doubled without efficiency gains Source: The Outlook for Energy: A View to 2040. Exxon Mobile. 3
Quadrillions BTUs 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% -2,0% -4,0% -6,0% -8,0% -10,0% Oil to remain primary, natural gas to grow most Global fuel demand in 2040 - projections 250 200 150 100 0,7% 1,6% -0,2% 0,3% 2,9% 4,8% 1,3% 50 0 Oil Gas Coal Biomass Nuclear Solar/wind/biofuels Hydro/geo 2014 2040 CAGR 2014-2040 1/3 of the world s energy is expected to be provided by oil in 2040 40% of the growth in global energy demand from 2014-2040 is projected to be met by natural gas Source: The Outlook for Energy: A View to 2040. Exxon Mobile. 4
oversupply could be an advantage for a new market demand and supply forecast until 2030 (BCMA) 600 Downside potential for price 500 400 300 200 100 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Supply from existing facilities New supply from post-fid projects Potential supply from non FID projects demand Source: McKinsey & Company 5
Flexible energy source for a wide range of applications Heat/Power Transport Cold energy N 2 Air O 2 Ar Industrial companies Vessels Buses/ trucks Air separators District heating supply companies Cars Food processing establishments 6
AB Klaipedos Nafta plans to capture part of the energy demand growth New terminal development and advisory services: Operating under third party access infrastructure principles Single user terminals feeding natural gas transmission systems Single user to Power projects and other Small-scale terminals/bunkering/reloading stations Initial development Design and procurement Construction Commissioning Operations Key areas where new terminals are developed New projects 7
New terminals have significant impact on regional markets to power 1. 2. Multi-user regas terminal FSRU terminal Gas power plant TPA FSRU terminal TPA gas transmission system Full scale break-bulking hub 3. 4. can result in a regional value chain TPA gas transmission system FSRU terminal TPA gas transmission system FSRU terminal L N G bunkering/distribution vessel bunkering/distribution vessel small scale value chain 8
Klaipeda terminal a regional game changer in the Baltics 1. 2. 3. Energy security for the Baltics states and for Finland/Poland Opportunity for market players to import gas from the global market Diversified supplies and entrance to new regas markets 4. Break-bulking possibilities for new small-scale markets 9
Average Nm 3 / day Klaipeda terminal in some periods reach around 90% capacity utilisation Regasified volumes > 330% YOY increase in regasified volume Third Party Access infrastructure 7.000.000 6.000.000 5.000.000 Unused capacity Spot cargos 4.000.000 3.000.000 2.000.000 1.000.000 - January March May July September November 2016 2015 2016 Confirmed T Annual Schedule 2016 KN preliminary forecast 2015 regasified volume 10
Baltic Sea Region full of developments The world s first fueled Pure Car and Truck Carrier was delivered to Norway The world s first powered icebreaker Polaris delivered Tornio Raahe Started operations First ship bunkered Ora Seagas has made its 1.000 -bunker operation Gavle Pori Tender announced for the construction Hamina Ust-Luga Risavika Lysekil Nyneshamn bunkering facilities planned for Germany s Port of Lubeck Ship-to-ship bunkering Gothenburg Bomin Linde has signed a TCP for a bunker supply vessel New supplier: Koch Carnival Corporation Signed Agreement with Shell to Fuel World's First -Powered Cruise Ships Gate Swinoujscie First bunkering trials in Poland 11
Undergoing development of small-scale value chain in Klaipeda FSRU Independence transportation vessel reloading/bunkering station Klaipėda terminal supply route (approx. 7 km) reloading/bunkering Existing oil station product terminal Planned commercial operations start in H2 2017 12
Reload station solution for off-grid locations Work-In-Progress: EU funding support (around 9mln. EUR) transportation vessel Open season Ferry to Karlsham 500 km Potential clients: Current consumption Potential consumption 13
Our strategy on 1 2 3 4 5 Ensure alternative source of supply Effective and efficient operation of Terminal Develop Terminal related services Develop small scale infrastructure Develop regional market Mantas Bartuška, General Manager AB Klaipedos Nafta October 18th, 2016 14 K.Fedirka (FotoSkrydis)