PGNiG on the global gas market. Piotr Woźniak CEO of PGNiG

Transcription

1 PGNiG on the global gas market Piotr Woźniak CEO of PGNiG

2 PGNiG Capital Group EBITDA PGNiG S.A.: Listed on Warsaw Stock Exchange since Market cap. 9,9 bln USD. Shareholders (December 31, 2017) Trade and Storage 2016: 10% 2017: - 7% ~ 114 mln USD Free float 28.12% Average daily trading in 2017: USD 5,9 mln Exploration and Production State owned 71.88% 2016: 37% 2017: 59% ~ 1,02 bln USD EBITDA 2016: 1,6 bln USD 2017:1,74 bln USD PGNiG Capital Group Poland s no. 1 integrated group in the oil and gas sector. 3rd biggest oil company in CEE. 8th biggest company in CEE. Over employees in the whole group. Stable EBITDA level due to diversified inflows Generation 2016: 13% 2017: 13% ~ 228 mln USD sources. 2 Other segments contribution to EBITDA in 2017: -3%; in 2016: -3% Distribution 2016: 43% 2017: 38% ~ 683 mln USD

3 Gas & Oil Production in Poland 3

4 PGNiG Exploration & Production PGNiG s EBITDA structure: 2016 EBITDA: 1,6 bln USD 2016 E&P EBITDA: 0,59 bln USD mm boe 38,8 38,9 63% 37% ,2 3,5 5,9 6,1 3,7 4, EBITDA: 1,74 bln USD 2017 E&P EBITDA: 1,02 bln USD 20 59% ,8 41% Natural Gas Poland Natural Gas abroad Crude Oil and Condensate Poland Crude Oil and Condensate abroad Average daily production: gas: boe (416 mcf) oil: boe (3,65 thousand tonnes) PGNiG s resource base in Poland: proved gas reserves 538 mln boe (2 906 bcf) proved oil reserves 124 mln boe (18,1 mln tonnes) 4

5 PGNiG Capital Group prioritiy: diversification of Polish gas supplies Natural gas consumption in Poland is constantly growing. Due to high Take-or-Pay clause in the contract with Gazprom Poland s gas supplies originate mainly from Russia (contract expires in 2022). Structure of PGNiG import portfolio Import capacities to Poland (beyond 2022) New transmission capacities which are under construction will allow to diversify PGNiG portfolio. 13% 16% 23% 19% % 70% 13% 1% 3% 18% 23% 14% Based on Gaz System data Eastern Direction (BY, UA) Southern Direction (CZ, SK) Western Direction (DE) LNG Terminal Baltic Pipe (NO) Northern Direction (LT) 5

6 Norwegian Continental Shelf and the Baltic Pipe The Baltic Pipe project will allow to import non Russian gas to Poland 6 Main production assets in Norway:

7 PGNiG Upstream Norway Number of licenses in Norway Direct investments in Norway Established in ,6 bln USD since 2007 r. Income (2017) 325 mln USD EBITDA (2017) 222 mln USD Asset value 1094 mln USD Main assets: ~12% Skarv i Ærfugl ~24% Vilje i Vale 6% Morvin 8% Gina Krog 35% Skogul Production (2017) 7 mln boe (37,8 bcf) Estimated natural gas production in 2023: PGNiG E&P activity in Norway 21 16,3 mm boe (88,2 bcf) 7

8 LNG import By August 2018 PGNiG brought to Poland ca. 3.3 mln tonnes of LNG: 32 6 Shipments delivered by Q-Flex type ships from Qatargas Deliveres from other sources than long-term contracts November 2017: PGNiG signed mid-term contract with Centrica LNG Company Limited June 2018: PGNiG signed two Heads of Agreement with Sempra LNG & Midstream LLC and Venture Global LNG, Inc., total volume: 4 mtpa of LNG 8

9 Other key markets for PGNiG Capital Group Pakistan Other foreign activity in 2017 Seismic works Seismic data aquisition: Algieria, Austria, Croatia, Columbia, Myanmar, Tunisia, Egipt, Germany Seismic data processing and interpretation: Algieria, Austria, Spain, Yemen, Norway, Pakistan, Switzerland Drilling works: Agreement date 18 May 2005 Main drilling areas: Pakistan, Kazakhstan, Ukraine 9 Shares Location Estimated resources Drillings initiated: 5 in Rehman, 2 in Rizq PGNiG (70%), Pakistan Petr. (30 %) Sindh province, Kirthar block 14,2 bcm of gas (501 bcf) 10,5 bcm (370 bln cf) Rehman / 3,7 bcm (131 bcf) Rizq) In March 2018 PGNiG signed Memorandum of Understanding with Mari field operator Mari Petroleum Company Limited Libya: Single LC113 extraction licence since 2008 Mid-2014: force majeure announced 2017: activities limiting the influence of force majeure and verification of prospects.

10 Coalbed Methane Resources in the Polish Coal Basins Estimated potential of CBM production in Poland: 1-2 bcm/y 35,31-70,62 bcf/y Estimated reserves of methane: Lublin Coal Basin bcm ( bcf) Upper Silesian Coal Basin bcm ( bcf) Lower Silesian Coal Basin 3-5 bcm ( bcf) 10

11 PGNiG pilot project for CBM production Main goals: 1. Determine the screening criteria for pre-mine drainage of coal seam gas depending on geological-mining conditions. 2. Develop directional drilling technologies and methods of coalbed gas production suitable for the Upper Silesian Basin conditions. 3. In case of positive results, demonstrate the feaseability of the pre-mine drainage technology, and subesequently its implementation in the selected area. Geo-Methane Project Out of 29 active coal mines in Upper Silesian Coal Basin only 4 mines and 2 small mining facilities operate under methane-free 11 conditions

12 Coalbed Methane extraction Research program in Gilowice and Geo-Methane Project m3 (~ 32 mcf) 4-5 years m3/day (0,18 mcf/day) Natural gas test Upcoming research and Natural gas flows in 2017 production in 2017 demonstration phase 97% Start of cooperation Methane content with mininig companies

13 Thank you for your attention Piotr Woźniak CEO of PGNiG

14 Disruptions of gas supply to Poland since 2004 Decrease Duration Route January % 1 day via Belarus January % 4 days via Ukraine January % 20 days via Ukraine June % 1 day via Belarus September 2014 March % 6 months via Ukraine via Belarus June % 1 day via Ukraine June % 2 days via Belarus ONLY TO POLAND Gazprom is hardly a reliable supplier 14