natural gas: situation objectives opportunities - …€¦ · xvii jornadas de directivos dg...
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XVII JORNADAS DE DIRECTIVOS DG COMERCIALIZACIÓN
Natural Gas Main business and opportunity
For Endesa, natural gas is more than simply an opportunity:
importantopen market
Contrasted experiences (in tariffs: Indexed products, projects and applications…)
investmentAccess to gas
new market segments in different countries
new uses
integratedmanagement
Mercado mixto
Mercado liberalizado
Mercado regulado
Fuentes: BP, Statistical Review of World Energy 2015
USAImport: 43Export: 76Consump.: 762
Northern EuropeImport: 153Export: 172Consump.: 191
RussiaImport: 24Export: 202Consump.: 401
Korea/JapanConsump.: 172
AustraliaImport: 6Export: 32Consump.: 29
AfricaImport: 9Export: 83Consump.: 128
Middle EastImport: 33Export: 161Consump.: 473
South EuropeImport: 121Export: 8Consump.: 120
LatamImport: 39Export: 43Consump.: 171
MexicoImport: 30Consump.: 88
Uds. en BCM
IndiaImport: 37Consump.: 50
ChinaImport: 169Consump.: 186
Global market…Different liberalization
Chile, Brazil,
Argentina
EUROPENBP, TTF, PEG, PSV
Middle East
Australia
CHINA
Sources: Platts, ICIS Global LNG Markets
10 €/MWh
23 €/MWh
27 €/MWh
Korea/Japan
27 €/MWh
28 €/MWh
26 €/MWh
25 €/MWh
…Local marketsAccording to transport capacity
USAHenry Hub
FOB LNG Prices (€/MWh)
CIF LNG Prices (€/MWh)
NG Hub Prices (€/MWh)
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Prices in Europe tend to
converge towards TTF…
• Regulation pressure towards more transparent markets
• Increase in access and availability in interconexions
• New interconnection projects in Europe
… with pressure from supply and demand…
• Demand in a standstill
• Plans for efficiency and carbon reduction (industry relocation)
• More gas availability, more production and liquifaction capacity
… but Iberia is different for its own market characteristics
October 2015Period: Cal-16
PEG: 18,6
Zee: 18,6
TTF: 18,5
NBP: 18,8
NCG:18,8
19,3
In EuropeExcess of supply, low demand increase
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MarketCharacteristics
LNG relevance
Competitive pricereference
Interconnection vs demand
Market liquidity, balancing
Regulated tariffs
Futures marketdevelopmento
Ease to getwholesaler gas
Spain France Italy Germany Netherlands UK
TTF
SpainCharacteristics
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Convergence to a unique market
Inte
rco
nn
ecti
on
ca
pac
ity
Potencial of LNG in end consumptionHighLox
Lo
wH
igh
Only actors with geografical diversity…
Endesa’s presence
•AOC
Interconnection
LNG
•PEGs
•TTF
LNG and NG
2016-20
•NCG•NBP
• Main way to supply de new demand; before NG (IEA Medium term gas market report)
• New production in Australia and USA increases diversity, flexibility and estability.• 203 bcm regasification capacity, with usage ratio below 20%
• Iberia has 8 regasification plants (70 bcm), nearly half of continental Europe.
Increase of LNG in EuropeSituation and infrastructure
• Gas ENEL Business (bcm/year))
Business 2015:27.8 bcm(300 TWh)
• Comparative chart (bcm/year)
• LNG vs Pipeline • Enel LNG
27%
73%
LNG
126 loads / year
27.8 25.7
61.4
36.524.5
ENELPortfolio
Consumption Spain
Consumption Italy
Production UK
Import LNG China
Enel, a global playerVolume and competitive and flexible contracts
4.6
6.2
4.6
8.0
4.4
Iberia Italy Latam
Russia Other
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A LNG market that establishes the marginal price A LNG market that establishes the marginal price
Gas prices linked to crude oil
Gas prices linked to crude oil
Slightly increased but
constant demand (NGV transport, bunker, …)
together with efficiency programmes
Slightly increased but
constant demand (NGV transport, bunker, …)
together with efficiency programmes
Greater integration in Europe
Development of a regulated market
Construction of transport infrastructure (Midcat and south of France network +2020)
Greater integration in Europe
Development of a regulated market
Construction of transport infrastructure (Midcat and south of France network +2020)
Market in SpainMature but with growth possibilities
Despite the reduction in demand in 2014, Endesa’s share in the conventional market increased by 18.7% in 2014.
• Conventional demand declined in 2014 as a result of the drop in cogeneration and a mild winter.
• Sustained growth in sales by Endesa in Spain doubling the market shareof other suppliers.
• Endesa’s growth was strong in 2015-2016 in Portugal and France
Endesa, second largest operator
* Sources: Sedigas, Enagas and Own research
Cogeneration and
Temperature effect
Conventional demand in Spain
Customer-oriented growth strategy
A competitive gas supply enables us to be the second largest player in the Iberian market
ENDESA
Algeria LNG
Nigeria LNG
Qatar LNG
Algeria LNG
Others LNG
USA LNG
GrowthEndesa’s strategic priority
MARITIME TRANSPORT
A high energy efficiency solution, greater respect for the environment and cost-savings for your company
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World map with maritime routes obtained with AIS data (Automatic Information System)
Privileged position
Supply technologiesLiquefied natural gas
(LNG)
Evaporation at room temperature
LNG Storage
-160 ºC, 4 bar(Regasification or
port plant)
Transportable tank Truck Supply ship On-board
injection
Alternatives
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