Marketing of Small Scale LNG serving Remote Users

MBA (E&I) Group 5

Darshit Paun 20131010

Joy Barot 20131016

Raman Shahi 20131040

Siddhartha Bhatnagar 20131051

Swapnil Rayjada 20131054

Marketing of small scale LNG serving remote users

B2B MarketingGroup Project

Presented to:Dr. Subrat Sahu

Potential Markets

DahejHazira

Dabhol

Kochi

Mundra

Ennore

Gangavaram

Source: PNGRB website (Pipelines)

Petronet LNG Ltd

Taral Gas

• It is the trade name of the LNG supplied by road tankers. TheCompany has launched its product under the generic brand name“TARAL GAS”- the New Age Fuel, through LNG satellite hubs/stations that will serve the industries which are not connectedthrough pipelines, heavy automotives on highways, housingcomplexes etc. Commencement of the brand on 25th September2014.

Customers

• In its pilot project, Petronet LNG had successfully supplied Taral Gas to HLL Lifecareplant in Thiruvananthapuram in September. At present, Petronet LNG has threetrucks with a capacity of 8-9 tonnes each for the retail supply of the fuel in thestate.250 km distance from the port.

• At present, 20 trucks of Petronet LNG are operating daily in North India, carrying fuelto various consumers from its LNG terminals in Gujarat.

• Currently about 4-5 trucks are loaded on daily basis & total of around 2000 truckshave been loaded till date.

• Facility can handle 2500 loadings / Yr.

• Presently LNG (by road tanker) is being sold to limited consumers in Western region.

• Fast developing market with several new consumers (up to 800 KMS) are being linedup for off-take of LNG for industrial and city gas use.

Business Components

1) LNG tanker loading facility.

2) Cryogenic LNG road tankers.

3) LNG Storage & re-gasification facility at customer location generally called LNG Satellite station.

Inox India Ltd

Company Profile & Offerings

• INOX India limited, a part of US$ 2 billion capital INOX group of companies, isa globally acclaimed company offering comprehensive solutions in cryogenicstorage, vaporization and distribution engineering.

• Headquartered in Vadodara, INOX India has grown to become a market leaderin the highly challenging field of vacuum insulated cryogenic equipment inIndia and across the world.

• INOX India Limited is equipped with two ultra-modern facilities spread over78151m2 and covered area of 25,500m2 located at Kalol, near Vadodara andKandla – a port located at Gandhidham (Gujarat).

GoLNG

GoLNG

• GoLNG is transported or distributed by transportation tanks unlikePNG which is transported by trunk lines and piped network. On-site storage tank is applicable in case of GoLNG.

• Regasification takes place at the site rather than at the LNGterminal.

• The costs are low on capex for facility but the transportation costsare relatively higher than in PNG. The total costs may vary forcustomers in the same area therefore. Unlike lead times for newnetwork of 10-12 months for PNG, GoLNG will have only 4-8months.

GoLNG Clients

LNG Express India Pvt. Ltd

Company Profile

• Obtained license from PNGRB for marketing of natural gas through Liquefied Natural Gas (LNG) route to industrial and commercial customers on 26th Feb, 2013, by transporting LNG in cryogenic tankers.

• The areas shown in the diagram below were included for marketing:

Customers

Micro Users Mini Users Medium Scale

Users

Quantum Users

NG filled at 250

bar in

cylindrical

pallets for daily

requirement

NG filled at 250

bar in cylinder

banks and micro-

bulk solutions

NG filled at 250

bar in cylinder

cascades

LNG mini-bulk

storage tanks

For users

requiring in bulk

quantity

Costing Aspects

Costing Aspects

Costing Aspects

Customer Profile

• Industrial Sector – Glass, Steel, Petrochemicals

• LNG Consumption – 10 TPD to 50 TPD

• Operations – Continuous (24 * 7 basis)

• Alternate Fuel – LPG or Naphtha

• Distance from Source – up to 1500 kms

• Source of Supply (current) – Kochi

• Source of Supply (future) – Dahej, Kochi, Krishnapatnam,

• Dabhol, Hazira, Ennore

Advantages of small scale LNG Model

• Enables access to natural gas beyond pipelines

• Ensures uninterrupted supplies

• Delivers consistent quality of fuel

• Provides an economical fuel compared to LPG/Naphtha (at current fuel prices)

• Reduces your Carbon footprint

• Infrastructure can be easily relocated

Business Model

B2B Marketing channels

Lead Generation

Lead qualification

Bid and Proposal

Negotiation & sales closure

Fulfillment

Customer Care & Support

Conclusion

• Users don’t need to wait for natural gas pipelines to switch to a cleaner alternative

• New terminals coming up are providing for road distribution of LNG

• LNG/RLNG marketers need to build distribution systems in their business models

• Active government & regulatory support is needed to increase natural gas footprint

Thank You