Subramanya BettadapuraIndustry Manager, Energy Practice, Frost & Sullivan
Natural Gas Opportunities in Asia Presented by the Latest Gas Development Projects and
Recent Exploration Finds
April 10th, 2007
© 2007 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Natural Gas Reserves in Asia, 2005
Natural Gas Exploration and Development Activity in Asia
Discoveries and Major Gas Projects in Indonesia
Discoveries and Major Gas Projects in Malaysia
Discoveries and Major Gas Projects China
Discoveries and Major Gas Projects in Myanmar, Thailand and
Vietnam
Discoveries and Major Gas Projects in India, Pakistan and
Bangladesh
Other Countries
Table of Contents
Proved Gas Reserves (in Trillion Cubic Meters) in the Asia Pacific Region at the end of 2005
Introduction
TOTAL: 14.84 TCM Source: BP
Malaysia: 2.48
Indonesia: 2.76
China: 2.35
Bangladesh: 0.44
Australia: 2.52
India: 1.1Myanmar: 0.5
Brunei: 0.34
PNG: 0.43
Pakistan: 0.96
Thailand: 0.35
Vietnam: 0.24
1TCM=35.3TCF
• Gas Production between 2001 and 2005
Production Growth of select countries in Asia (2001 – 2005)
ASIA
Source: Data from BP Statistical Review
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Pro
du
ctio
n (
BC
M)
2001
2002
2003
2004
2005
• Gas Consumption between 2001 and 2005
Consumption Growth of select countries in Asia (2001 – 2005)
ASIA
Source: Data from BP Statistical Review
0.010.020.030.040.050.060.070.080.090.0
Co
nsu
mp
tio
n (
BC
M)
2001
2002
2003
2004
2005
• Widening gap between consumption and production in Asia. Production in the region not increasing in tune with consumption. Thus, gas importing countries in Asia will have to rely on imports from other regions – Australia, Iran, Qatar and other gas surplus countries
Consumption versus Production Gap - Asia
ASIA
Note: Production and Consumption figures are for Asia only (not including Australia, New Zealand and Papua New Guinea)
Source: Data from BP Statistical Review
Between 2001 and 2005, consumption increased 32% across Asia. Production increased 31% during this period
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
2001 2002 2003 2004 2005
Year
BC
M Production
Consumption
GAS EXPORTERS AND IMPORTERS - ASIA
Introduction
Source: Frost & Sullivan
INDIA – Potential major importer
INDONESIA
CHINA – Potential major importer
JAPAN – Largest Importer
S. KOREA – Major Importer
MYANMAR
BRUNEI
THAILAND
EXPORTER
IMPORTER
MALAYSIA
SINGAPORE
TAIWAN
• Strong Demand for LNG from Japan and South Korea
• Demand for LNG from China and India set to increase
• Proximity of Thailand to major gas exporters makes natural gas pipelines viable. Singapore connected to Malaysia and Indonesia through natural gas pipelines
• Increase in demand and new discoveries give a thrust for the completion of the other planned phases of the Trans-ASEAN Gas pipeline
• Both Thailand and Singapore exploring options to build LNG import terminals
• China, India, Pakistan, Philippines, Thailand and Vietnam – Domestic E&P programs to supplement imports and to meet increasing gas needs
Demand Side Trends
Exploration & Development
• Liquefaction costs are reducing making LNG more attractive. LNG emerges as a viable option for long distance transportation
• Australia, Russia, Iran, Qatar, Saudi Arabia, Oman and UAE – major global competitors for Asian Exporters
• Australia has supply contracts with Japan, South Korea and China.
GLOBAL COMPETITORS FOR ASIAN EXPORTERS
Global Competition
2008 to 2012 – Window of Opportunity to Lock-in Customers in the Asia-Pacific region?
Asia Pacific region is a sellers’ market at present and is expected to remain one till 2012 after which it is likely to transition to a buyers’ market. So, there is a window of opportunity for suppliers that opens in 2008 and closes four or five years later to lock in customers in the Asia-Pacific while there is a shortfall in supply
Development of new gas fields in Australia is being accelerated to start supply as early as 2008. Securing customers after 2012 is likely to be difficult because supply from plants in Qatar and Iran - which have reserves of 52.5 trillion cubic meters of gas, or 21 times the proven reserves in Australia – will start supplying to the market.
• Field Surveys
• Drilling equipment and services
• Well assessment
• Production Platforms supply
• Support and Maintenance services for Development projects
• Pipelines
• LNG plants (Liquefaction plants)
• LNG import terminals and Re-gasification plants
• Marine Vessels (FSOs, LNG Carriers, Pipe-laying vessels)
• Equipment supply (Turbo-machinery, etc)
• Gas to Power (Gas power plants)
Opportunities in exploration and development projects
ASIA
During the Period 2002 to 2006, US$28 to US $30 billion is estimated to have been spent on
offshore drilling in Asia
The Pipeline expenditure in Asia during the period 2002 to 2006 is estimated to be US$15 to
US $17 billion
Asian Shipyards report growing number of orders for offshore production units and rigs
Offshore Support Companies continue to display impressive growth
Exploration and Development Activity – Asia Snapshot
Exploration & Development
PhilippinesOffshore Palawan
VietnamNam Con Son
ChinaPanyu, Hui Zhui
IndiaKG Basin
IndiaRajasthan
PakistanZamazama
IndonesiaMaleo
IndonesiaBontangIndonesia
Natuna Sea Blocks
MalaysiaGuntong E
IndonesiaKakap Field
MalaysiaOffshore Sarawak
MyanmarShwe Field
Source: Frost & Sullivan
Discoveries and Major gas projects
INDONESIA
Source: Frost & Sullivan
Maleo Development
Proposed Pipeline
Tangguh
Jatirarangon field
Onshore Pondok Tengah field
Lukah IXNatuna Sea Block A
Tunu Field Development
Bontang
Kerendan
Kakap Field
Padang LNG
Discoveries and Major gas projects in Indonesia
Indonesia
Country Gas Discovery/Project
Kerendan area gas reserves, onshore Kalimantan
Tunu Field Development Project, Phase two
Maleo Gas Development project
Tangguh Project
Lukah IX
Kakap Field Development - Maintenace Contract
Onshore Pondok Tengah field, West Java.
Jatirarangon Field
Natuna Sea Block A
Padang LNG Project, Central Sulawesi
Samarinda to Surabaya Pipeline
INDONESIA
Discoveries and Major gas projects in Malaysia
Malaysia
2006 E&P Spending in Malaysia: RM16billion
Source: Frost & Sullivan
PM 302
Pisagan 1A
Oil & Gas Terminal at
Kimanis
Kanowit 1
E-11 Hub Integrated Gas Project
E-8, F13 West and F13 East satellite gas
fields
PC4-1 exploration well
F-38, F2 attic and B12 Guntong
Hub
Discoveries and Major gas projects in Malaysia
Malaysia
Country Gas Discovery/Project
Guntong Hub Development
PC4-1PM302
Pisagan-1AKanowit 1
E-11 Hub Integrated Gas ProjectSabah Oil & Gas Terminal at
Kimanis, Sabah
MALAYSIA
Discoveries and Major gas projects in China
China
Shanghai’s LNG receiving terminal
Fujian LNG Import terminal
Pearl River basin Husky Energy
Liwan 3-1-1, Block 29/26
Puguang Gas Field
Proposed West-East Pipeline -2
Hui Zhou Gas Field
Panyu Gas Field
Source: Frost & Sullivan
Discoveries and Major gas projects in China
China
Country Gas Discovery/Project
Shanghai’s LNG receiving terminal
Fujian LNG Import Terminal
Pearl River BasinPuguang Gas Field
Hui Zhou 21-1Panyu 30-1
Second West East Pipeline
CHINA
Discoveries and Major gas projects in Myanmar, Thailand and Vietnam
Myanmar, Thailand and Vietnam
Shwe & Shwepyu Block A-1,
Mya Block A-3
Proposed Myanmar – Bangladesh – India
Gas Pipeline
Proposed Arakan Kunming Pipeline
Chauk Field
Proposed LNG import facility
Phu Horn Project
Bongkot Phase IV
Arthit Field
Ban Yen 2A
Song Hong Basin
Ca Ngu Vang
Rong DoiNam Con Son
Source: Frost & Sullivan
Discoveries and Major gas projects in Myanmar, Thailand and Vietnam
Myanmar, Thailand and Vietnam
Country Gas Discovery/Project
Offshore Blocks A-1 (Shwe and Shwepyu) & A-3 (Mya Field)
Chauk oil field
Phu Horm Project
Bongkot Phase-4 development, Gulf of Thailand
Arthit Production
Ban Yen 2A
Proposed LNG Terminal
Song Hong Basin
Ca Ngu Vang (CNV)
Nam Con Son
Rong Doi
VIETNAM
MYANMAR
THAILAND
Discoveries and Major gas projects in India, Pakistan and Bangladesh
India, Pakistan and Bangladesh
Krishna Godavari BasinONGC
KG-DWN-A-1KG-DWN-E-1KG-DWN-U-1KG-DWN-W-1
RelianceDhirubhai 1 & 3
D6
RajasthanFocus Energy –
SGL1
Vasai-East
Bangora-1 WellZamZama Field
Mahanadi Basin
Source: Frost & Sullivan
Kochi LNG Terminal
Discoveries and Major gas projects in Other Countries in India, Pakistan and Bangladesh
India, Pakistan and Bangladesh
Country Gas Discovery/Project
D6, Krishna-Godavari basin
Dhirubhai gas field development project in the Krishna-Godavari
(KG) basin
ONGC Discoveries KG basin and Mahanadi basin
SGL-1, Rajasthan
Vasai East Development Project
Kochi LNG Terminal
PAKISTAN ZamZama Phase-2
BANGLADESH Bangora-1
INDIA
• The Korea National Oil Corporation (KNOC) has discovered a commercial natural gas deposit in
the Donghae 6-1 sector of the Sea of Japan
Discoveries and Major gas projects in Other Countries in Asia
South Korea
Singapore
Rest of Asia
• LNG terminal by 2012. Contract to be awarded in 2008. Project cost estimated to be $500million
Philippines
• Forum Energy has surveyed the Sampaguita gas discovery at offshore Palawan. Results show
in place gas reserves of 3.4 trillion cubic feet (tcf) with upside reserves of approximately 10 tcf