Downstream Presentation_21st Jan'16

7/24/2019 Downstream Presentation_21st Jan'16

1/32

4thIndia Africa Hydrocarbon Co

Overview of Indias Downstream

Sector

New DelhiJanuary 21, 2016


2/32

1. Evolution of Refining Sector

4. R&D capabilities

Technical offerings

5. Presence in Africa

Presentation Overview

2. Refining Industry Landscape

3. Gas Industry Landscape


3/32

Refining Industry Evolution

Assam oil company

(AOC) built Indias 1st

refinery at Digboi

(0.25MMTPA)

Burmah Oil Company

(presently BP) entered

India and took over AOC

Indias 3rd refinery (1.75

MMTPA) commissioned at

Mumbai by Burmah Shell

1901 1921 1955 1957

Indias 4th refine

MMTPA) commiss

Visakhapatnam b

Indo Burmah Petroleum

Company (IBP) started

its petroleum marketing

operations in India

1909

Birth

1954

Indias 2nd refinery (1.25

MMTPA) commissioned at

Mumbai by Stanvac (Esso)

India

com

Growth

Refineries set up during this time period were mostly in the coastal locations, proc

indigenous/imported crude, having low capacity and conversion levels (HSK). Typiwere $60-80m per MMT


4/32


Nationalization of

Burmah Shell Refineries

Ltd to form BPCL

1974 19761964

Indian Refineries and

Indian Oil Co. merged

to become Indian Oil

Corporation Ltd

Nationalization of

ESSO and Lube India

Ltd to form HPCL

Consolidation

De-licensing of

refining sector

1998

Expansion

Economic

Reforms

1991

Oil shocks of 70s necessitated upgradation ofheavy material. Consequently, FCC were

installed in existing and new refineries

Dramatic increase in demadistillatesHydrocracking technologyexisting refinery configura

Meger of Caltex

Oil Refining India

Ltd in HPCL

1978


5/32

Increasing environmental focus, vehicle efficiency standards and stressed GRM

installation of HDTs & HDSs and integration of refineries with petrochemic

De-regulation of

ATF,FO,LDO

100% FDI permitted in

Exploration, Refining,

Pipelines

2002 20142006 2010

Integrated

Energy Policy PNGRB bill

MS deregulated

HSD degulation

and DBTL for LPG

Free Market Structure Emergence

Technology driven competencie

petrochemical sector could help

as a global service provider in th

downstream sector



6/32


4. R&D capabilities

Technical offerings






7/32

Refining Sector - Current Scenario

Figures as on 1stApril of each year

Over the last decade, close to 70 refineries have closed globaIndia has grown at CAGR of 6% along with adoption of eco-fr

127 132149 149

178185 193

213 215 215230

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

MMT

Installed Refining Capacity (MMTPA)

2010

Nationwide

2017

NationwBS III

BS IV

BS


8/32

Refining Sector - Product Scenario

Surplus is exported since 2001

India currently has a surplus production of 58 MMTPA, which is equivalentconsumption.

Country has exported Petroleum Products worth $ 47.3 billion in 2014-15

0

50

100

150

200

250

2010-11 2011-12 2012-13 2013-14 2014-15

Production & Product Consumption(MMTPA)

Production Consumption Exports

0

50

100

150

200

250

300

350

Latin America North Europe Singapore

India Product exports to World

2010-11 2011-12 2012-13


9/32

Refining Sector - Crude Scenario

65.00

67.00

69.00

71.00

73.00

75.00

77.00

79.00

81.00

83.00

85.00

0

50

100

150

200

250

2010-11 2011-12 2012-13 2013-14 2014-15

%

MMTPA

Installed Capacity(MMTPA) Crude Imports(MMTPA)

Domestic Crude Production(MMTPA) Import dependency (%)Based on consumption

Domestic crude accounted for

refinery intake in

-0.5

0

0.5

1

1.5

2

2.5

3

0 10 20

SulfurContent(%)

API Gravit

Indias crude sla

India Saudi Arabia

Nigeria Kuwait

Angola Colombia


10/32

Refining Sector - Industry Overview

Installed refining capac

4thlargest in th

Average refinery size

30.5

23.8

15

20

11

4

3

2

2

1

Capacity (MMT)


11/32

2005-06 2006-07 2007-08 2008-09 2009-10 2010

Refinery Util

Refining Sector - Performance

127141 151

161

187196

204

219 222 223

80

100

120

140

160

180

200

220

240

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

MMT

Refinery throughput (MMT)

76.473.6

70.769 67.8

65.763.2 62.4 61.5 62

50

55

60

65

70

75

80

85

90

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

MBTU/bbl/NRGF

Specific Energy consumption (Industry avg)

73.3 73.4

7474.4 75

75.

72

73

74

75

76

77

78

79

2005-06 2006-07 2007-08 2008-09 2009-10 2010-

%ofcrude

processed

Distillate yi

Source: PPAC/IHS

Refinery benchmark High Utilization rates topping c


12/32

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Utilization

rates

Refinery benchmark-High Utilization rates, topping c&Conversion ratio among Asian countries

85

% share in tot

0.00

2.00

4.00

6.00

8.00

10.00

12.0014.00

0

100

200

300

400

500

600700

NCImb/d

Capacity and complexity indicators

CDU capacity (mb/d) Nelson complexity index

fi f d i l fi h


13/32

REFINERYHUB

SURPLUSREFININGCAPACITY

PCPIRs

STRATEGICMARITIMELOCATION

STRONG R&DCAPABILITIES

& TECHNICALCOMPETENCY

COSTCOMPETITIVE

NESS

PETCHEMINTEGRATION

-VALUEMAXIMIZATI

ON

Refinery way forward-Potential refinery hu

India has all the key

refinery h

Petroleum, Chemicals &

Investment Regions

To Promote investmen

Chemicals and Petroch

and make the country

for both domestic and

markets

GOI has approved 4 PCAndhra Pradesh, Guja

Tamil Nadu

i li f


14/32

Pipeline Infrastructure

CRU

PROD

947

+420

14,4

+960

G S l d S i


15/32

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2010-11 2011-12 2012-13 2013-14 2014-15

TMT

Demand Production Imports

LPG Supply Demand Scenario

5.98 0.94

Sectoral LPG consu

Domestic Non

Industrial othe

India source most o

requirements from M

LPG I f t t


16/32

16

LPG Infrastructure

2316 KM

LPG Pipeline infrastructure

LPG distributio

4.73 MMTPA

1

dist~182 Mil

customers

LPG PAHAL


17/32

LPG-PAHAL

PAHAL-WORLDS LARGEST DIRECT CASH TRANSFER PROGRA

Total cash transferred under PAHAL $4.1billion

Petroleum Minister Dharmendra Pradhan presented the certificate received from Gu

World Records to the Prime Minister Narendra Modi. The certificate is in recognition

worlds largest cash transfer program

P t ti O i


18/32


4. R&D capabilities

Technical offerings





G I d t E l ti I di


19/32

0

10

20

30

40

50

60

BCM

Years

Gas Production in India

BOMBAY

HIGH

ACCELERATED

DEVELOPMENT

OFFSHORE

GOI awarded

First JV field

PMT

FORMATION

OF GAIL

SOUTHBASSEIN

Mu

ES

Ca

HVJ

COMMISSIONING

RIL

discoveredGOI

unveiled

NELP

LNG

IMPORTS

MAR -- 04

Eas

G

Gas Industry Evolution-India

Natural Gas scenario India


20/32

Natural Gas scenario-India

12

10

6

17

Sectoral Gas Co

20

Share of gas 7% in the present energy mix, projected to increase up to 2

Total gas consumption(2015) 115 mmscmd

0

10

20

30

40

50

60

70

2010-11 2011-12 2012-13 2013-14 2014-15

BCM

Imports Production Consumption

* Vision 2030 by PNGRB

Gas plants Polymer/LHC


21/32

Gas plants-Polymer/LHC

ONGC PetroAdditions Ltd

(1350 KTA)

VAGHODIA

(73 KMTA)

USAR

(139 KMTA)

GANDHAR

(207 KMTA)

AURAIYA, PATA

(258 KMTA)

VIJAIPUR-2 plants

(406 KMTA)

POLYMER PLANT AT

PATA, UP

(~ 810 KTA)

Brahmaputr

& Polyme

(280 K

Gas Pipeline Infrastructure


22/32

Gas Pipeline Infrastructure

15,000

+ 14,21

LNG India 4th Largest Importer


23/32

145

5 410

% Share in LNG Imports

Qatar Nigeria Australia Equato0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% Contribution

Nuclear

Renewable

Hydro

Gas

Oil

Coal

Primary Energy Mix- 2014-15

2015 IHSSource: IHS

56

29

7

LNG-India 4thLargest Importer

63%

37%

Production Imp

Source: IHS

5

LNG Infrastructure


24/32

LNG Infrastructure

DAHEJ I & II

10 MMTPA

HAZIRA

5 MMTPA

DABHOL

5 MMTPA

KOCHI

5 MMTPA

ENNORE

5 MMTPA

KAKINADA

3.5 MMTPA

DHAMRA

5 MMTPA

PRESENT

PROPOSED

LNG TERMINALS CAPACITY

25 MMTPA

PRESENT

In the next 5 years

+13.5 MMTPA

PROPOSED

City Gas Distribution (CGD)


25/32

City Gas Distribution (CGD)

CGDCOMPRESSED

NATURAL GAS (CNG)

PIPED NATURAL GAS

(PNG)COMMERCIAL INDUSTRI

COVERAGE AREAS25 CGD ENTITIES 71 CITIES 67 GEOGRAHICAL A

CGD NETWORKPNG CONNECTIONS

(DOMESTIC)

30.05 LAKHS

PNG CONNECTIONS

(I&C)

~28,000

CNG STATIONS~1015

CNG VEHI~25.5 LA

Total gas consumption in CGD in India 16.3 mmscmd

Govt. targets to reach 10 million PNG connections in next 2-3 y

Gas sector way forward


26/32

Gas sector way forward Clean Energy security for India

3 TIMESINCREASE INGAS SHAREIN ENERGY

BASKET

INTEGRATEDNATIONALGAS GRID

BETTER PRICEAFFORDABILITY

AND GASTRADING

PLATFORMS

INCREASEDROLE OF UN-

CONVENTIONALGAS SOURCES

INCLUSIVEENERGYACCESS

THROUGH CGDNETWORK

IMPORT OF NGTHROUGHTRANSNATIONAL PIPELINES

MULTIPLE LNGIMPORT

TERMINALS ONEAST AND

WEST COAST

I

i

t

E



27/32


4. R&D capabilities

Technical offerings





R&D Capabilities


28/32

R&D Capabilities

INDMAX at Guwahati refinery DH

Residue Upgradation

INDMAX

IndiCAT

Die

HP-HiGas SORDHDS/DHDT Catalyst

Used in Indian & Middle

Eastern refineries

Purification of refinery

gasesSO2 removal process

Use

Technological Offerings


29/32

Technological Offerings

PROCESS

TECHNOLOGIESAROMATIC

EXTRACTIONLUBES & WAXES

DIESEL HDT & LN

ISOMERIZATIONSULPHUR

RECOVERY

LPG

SWEETENING

FEED EPCMPMC EPC

PRESENCE ACROSS THE VALUE CHAIN



30/32


4. R&D capabilities

Technical offerings





MAJOR PROJECTS IN AFRICA&TECHNICAL TRANINGS OFFERED


31/32

&TECHNICAL TRANINGS OFFERED

KRPL, KENYA, KENYA PETROLEUM REFINER

Detailed feasibility report & licensor selecti

for refinery upgradation

SONATRACH,

ALGERIA,SKIKDA

REFINERY

FEED + PMC SERVICES

SONATRACH,

ALGERIA,ALGIERS

REFINERY

FEED + PMC SERVICES

SONANGOL,ANGOLA,

SONAREF REFINERY

CONFIGURATION STUDY

FOR GRASS ROOT

REFINERY

DORC,NIGERIA,

DANGOTE REFINERY

EPCM

EGYPT

Equity in 2 Retail Gas

Companies


32/32

Documents

Downstream Presentation_21st Jan'16