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London Stock Exchange Investor Day Presentation


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Presentation to Growth Companies Investor Day at London Stock Exchange

Presentation to Growth Companies Investor Day at London Stock Exchange

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  • Thank for taking the time to attend this short presentation Please feel free to ask any questions during the lunch break
  • Gasol plc is a small independent gas start up company… with the target of developing and monetizing stranded gas reserves in West Africa. I will take you through some of the elements of the macro objectives…
  • LNG is... Gas is not like oil.... Gas needs to be consumed locally, transported through pipelines or liquefied and shipped on tailor made vessels. The graph shows that... The major gas consuming markets are... While most of the gas resources are... Consequently LNG solution becomes an extremely viable business model.
  • LNG value chain comprises of 6 stages from…. Gasol’s strategy is to be involved from…. And as the business evolves potentially… Gasol’s objective is to minimise upstream exploration risk and we therefore depend on our upstream partners…. From there, we will take care of ….. Once the gas is cooled and liquefied, we will ship it and our downstream partners….
  • Our industry is going through interesting times, the economic crisis has impacted all sector, this has led to a fall in energy demand and our industry has therefore moved from being short in LNG a year ago to being LNG long today. Gas prices are currently out of line with LNG construction costs. New capacity coming on stream in the next 18 months… Difficult for project developers to take investment decisions Increasing competitiveness of LNG against competing fuels, emergence of new markets, the geographical distance between gas and consumers, concerns regarding security of energy supply  ensure continued demand for LNG – 8% growth p.a. until 2020 West Africa = increasing share of LNG supplies to the world
  • The energy business operates in cycles. Sometimes you invest when costs are low, sometimes not. It is a long-term business but one thing we can be sure of is that gas will continue to be the fuel of choice and projects must be developed to meet future demand increases. Industry needs to seek creative solutions within the current economic constraints. We believe that small companies can often lead the way.
  • Traditionally, dominated by Majors: bring their expertise, resources, market access and funding capability. Three key factors have created space for small companies: national oil companies desire to leverage on their resources barriers to entry have reduced demand holders have shown increasing interest to participate LNG projects to secure future production
  • Why are we focusing in Africa? The Gulf of Guinea is ideally-positioned to meet increased demand for gas, situated as it is between the large and growing North American and European markets and the rapidly-growing Far East markets; it has significant reserves of over 200 trillion cubic feet of gas; and has a proven track record of delivery. Why are we focusing in Africa? The Gulf of Guinea is ideally-positioned to meet increased demand for gas, situated as it is between the large and growing North American and European markets and the rapidly-growing Far East markets; it has significant reserves of over 200 trillion cubic feet of gas; and has a proven track record of delivery.
  • Transcript

    • 1. Growth Company Investor Day, June 2009 London
      • An Africa-focused gas independent
      • Soumo Bose
      • Chief Executive, Gasol Plc
    • 2. Notice The content of this presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance on the information contained in this presentation for the purposes of engaging in any investment activity may expose the investor to a significant risk of losing all of the property or assets invested. Any person who is in any doubt about the investment to which this presentation relates should consult a person duly authorised for the purposes of FSMA who specialises in the acquisition of shares and other securities. The information in this presentation is subject to updating, revision and amendment. The information in this presentation, which includes certain information drawn from public sources does not purport to be comprehensive and has not been independently verified. This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for or otherwise acquire, any securities in Gasol plc (the "Company") in any jurisdiction or any other body corporation or an invitation or an inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000, nor shall it or any part of it form the basis of or be relied on in connection with any contract therefore. This presentation does not constitute an invitation to effect any transaction with the Company or to make use of any services provided by the Company. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or any assumptions made as to its completeness. No representation or warranty, express or implied, is given by the Company, any of its subsidiaries or any of its advisers, officers, employees or agents, as to the accuracy, reliability or completeness of the information or opinions contained in this presentation or in any revision of the presentation or of any other written or oral information made or to be made available to any interested party or its advisers and, save in the case of fraud, no responsibility or liability is accepted (and all such liability is hereby excluded for any such information or opinions). No liability is accepted by any of them for any such information or opinions (which should not be relied upon) and no responsibility is accepted for any errors, misstatements in or omissions from this presentation or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. In the United Kingdom, this presentation is only being distributed to persons who are reasonably believed to be persons who fall within Articles 19 (1) and 19 (5) (investment professionals) or 49 (2) (High net worth Companies etc.) of The Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (“Financial Promotion Order”) or to other persons to whom this presentation may otherwise be lawfully distributed. Persons who do not fall within any of these definitions should return this presentation immediately to the Company and in any event, must not act or rely upon the information contained in this presentation. By listening to this presentation, each person is deemed to confirm, warrant and represent that they fall under one of the Articles set out above. The contents of this presentation must not be copied or distributed by recipients and its contents are confidential. No recipient of the information in this presentation should deal in or arrange any dealing in or otherwise base any behaviour (including any action or inaction) in relation to any securities to which this document relates (including behaviour referred to in section 118(6) of the Financial Services and Markets Act 2000) which would or might constitute market abuse (as defined in section 118 of the Financial Services and Markets Act 2000). Any financial projection and other statements of anticipated future performance that are included in this presentation or otherwise furnished are for illustrative purposes only and are based on assumption by the Company's management that are subject to significant risks and uncertainties and may prove to be incomplete or inaccurate. Actual results achieved may vary from the projections and the variations may be material. Variations in the assumptions underlying the projections may also significantly affect projected results. This presentation has not been examined, reviewed or compiled by the Company's independent certified accountants. No representation or warranty of any kind is made with respect to the accuracy or completeness of the financial projections or other forward-looking statements, any assumptions underling them, the future operations or the amount of any future income or loss. By attending / reading the presentation you agree to be bound by these provisions. Slide
    • 3. Contents
      • The Business Environment
      • About Gasol
      • Our strategy
      • Portfolio of opportunities
    • 4. Slide 1. The Business Environment
    • 5.
      • 1. The business environment
      What is Liquefied Natural Gas? Slide
      • LNG is natural gas that has been condensed into liquid form by cooling to −163 °C.
      • 1/600th the volume of natural gas
      • Odourless, colourless, non-toxic
      Cost-efficient to transport over long distances Source: Andy Flower Distance to Market in Kilometres $/boe $/MMBtu LNG cost Offshore cost Onshore cost Breakeven points
    • 6. The LNG Chain
      • 1. The business environment
      Gas Field Pipeline Liquefaction plant Shipping Regasification Terminal Discover gas assets, assess quantities, develop fields and produce gas Regasify LNG and transport to end users Transport gas from fields to liquefaction plant through pipelines Convert gas to liquid form by cooling and removing unwanted elements Transport LNG in LNG carriers to regasification terminals in end-markets End-customers Power plants, domestic, commercial industries Slide
    • 7. Outlook for LNG Market
      • 1. The Business Environment
      • Commissioning of new capacity will ease “tight” market in 2009 and 2010
      • Most new production comes on-stream in Asia and the Middle East, reducing export of Atlantic cargoes to Asian buyers
      • This will increase volumes into US and UK in short term; impact of LNG imports into these markets may cause price softening
      • Dearth of new LNG project FIDs will affect markets from 2012 onwards
      • Security and diversification of supply will remain a major issue
      • West Africa: increasing role in the LNG market
      • Longer-term fundamentals for liquefaction projects remain sound
        • Demand will grow faster than supply from 2012
        • Diversification of demand
        • Economically viable
    • 8.
      • 1. The Business Environment
      What does the industry need to do today to position for the future?
      • LNG is a long-term cyclic business
      • Position today for the future – gas will continue to be the fuel of choice
      • Seek innovative solutions within the current economic constraints
      • Small companies can often develop projects that larger companies consider marginal
    • 9. The economics offer space for independent LNG companies Space for Gas Independents New niche gas independents offering LNG expertise, commercial skills and project development capabilities on the ground – and forming partnerships along the gas chain
      • Traditional LNG Model
      • LNG value-chain dominated by the Majors
      • Majors = expertise, technology and strong Balance Sheets
      • Recent LNG Model
      • National Oil Companies aim to maximise benefits of resource-ownership
      • Barriers to entry broken down
      • “ Demand holders” (utilities, industry) seeking to go up the chain to secure long-term LNG supply  supporting project financing
      1. Business Environment Slide
    • 10. Slide 2. About Gasol … an Africa-focused gas independent
    • 11. About Gasol
      • 2. About Gasol
      MISSION : TO BECOME THE PREMIER AFRICA-FOCUSED GAS INDEPENDENT AIM ticker: GAS Shares in issue: 1,029 million The Company’s prime focus is on the monetisation of stranded and marginal gas reserves in the Gulf of Guinea by aggregation, liquefaction and shipment to high-value markets world-wide, whilst working closely with host governments and communities to supply the domestic market and align our business to local priorities. OBJECTIVE : To deliver 5mt of LNG over the next decade Slide
    • 12. Future LNG growth will come from small gas field development
      • Gulf of Guinea has over 200 tcf of proven and probable reserves; many are small gas fields
      • Approximately 80% of these gas fields are less that 100 bcf
      • 10% are in the range 0.5-2 tcf, ideal for small project development
      Slide 2. About Gasol Date Source: IHS West Africa; Angola, Cameroon, Congo, Equatorial Guinea, Gabon, Ivory Coast and Nigeria. Aggregated Conventional LNG Gas sale to domestic markets Conventional LNG Small-scale LNG Aggregated small- scale LNG Gas sale to domestic markets 16 fields 5-50 tcf 163 fields 1-5 tcf 641 fields 0.5-1 tcf 668 fields 0.25-0.5 tcf 940 fields 0.1-0.25 tcf 11,000 fields <0.1 tcf
    • 13. Gulf of Guinea- Significant opportunities (1) Source: Wood Mackenzie.
      • The Gulf of Guinea region of West Africa:
      • has a significant and largely untapped reserves base – over 200 Tcf
      • is geographically ideally-positioned to meet the increase in global demand
      • has proved its ability to deliver reliably substantial gas /LNG to global markets
      • is undergoing a wave of reform within the oil and gas sectors – e.g. The development of the Nigerian Gas Master plan
      • has among the highest levels of gas flare- out globally
      Over 200 Tcf estimated proved & probable gas reserves (1) 2. About Gasol Slide
    • 14. Slide 3. Our Strategy … key to viable gas projects
    • 15. The Strategy
      • 3. Our strategy
      • Bespoke Cost-Leading Midstream
      • technology
      • Alliances with midstream and technology
      • partners
      • Exploring various floating LNG solutions
      • Utilities, re-gasification companies ,
      • LNG trading companies
      • Bringing technical skills, financial
      • strength and market access
      • Participating in mid & downstream
      • Strong board and management team, with:
        • African expertise
        • Local connectivity
        • Experienced in business development
      • Stranded, flared gas and gas from
      • marginal fields
      • Gas aggregation
    • 16. Access to competitively priced gas reserves through upstream partners
      • 3. Our strategy
      • Agreement between Afren and Gasol
      • Partnership brings together upstream (Afren) and mid / downstream (Gasol)
      • elements of the value chain
      • Gasol is the exclusive mid-downstream partner of Afren
      • Gasol has right of first refusal to monetise and market Afren’s gas reserves
      • Afren has over 20% of the issued capital of Gasol
      • Gasol has an alliance with Sonagas to develop gas
      • infrastructure projects and monetize gas reserves within Equatorial Guinea
      • for supply to domestic and export markets
      • Gasol is open to dialogue with additional upstream partners in countries
      • across the Gulf of Guinea
    • 17. Near Shore Production Solution (LNG) – NSPS TM
      • 3. Our strategy
      • Benign waters off coast of Nigeria & Gulf of Guinea
      • Pretreatment / Liquefaction Barge with NDX-1 Liquefaction
      • Barge mounted process modules
      • LNG storage in converted LNG carriers
      • Moored to fixed, protected jetty
      • 2-6 mtpa plus LPG, C5+ and power
      Near-Shore LNG Production System Slide
    • 18. Experienced management
      • 3. Our strategy
      Non executive Chairman Jean Vermeire Current Non-Executive Chairman of Distrigas NV, a €4.5 billion Belgian-based natural gas company, and one of the largest in Europe. … has specialist advice ... and is supported by an effective team A strong Board… Theo Oerlemans Non-Executives Executive Haresh Kanabar Charles Osezua Paul Biggs Osman Shahenshah Pwc logo Soumo Bose Chief Executive Ethelbert Cooper Founder of Afren plc; Founder, African Gas Development Corporation Slide
    • 19. End- market and LNG off-take partners
      • 3. Our strategy
      • Gasol has strategic alliances with utility majors to develop, collect and monetise gas in the Gulf of Guinea for domestic and export purposes.
      • Multiple project opportunities
      • Jointly working on monetisation solutions including Floating LNG and NSPS
      • The partnerships include identifying:
      • Gas assets
      • Technology
      • Infrastructure
      • Timeline
      • Costs
    • 20. Slide 4. A portfolio of opportunities … to execute our strategy
    • 21. Portfolio of project opportunities
      • 4. A portfolio of opportunities
      • Nigeria: multiple opportunities
      • Equatorial Guinea
      • Cameroon
      • Congo Brazzaville
      • Gabon
      • Ghana
      • Others
      Slide 1 st Gas acquisition H2 2009 1 st FEED signed H1 2010 1 st FID signed H2 2010 – H1 2011 1 st LNG production H1 2014
    • 22. In Summary...
      • Gas is an exciting sector with niche opportunities for independents, especially in West Africa
      • Gasol’s focus = Gulf of Guinea : growing and important supply source
      • Gasol is securing access to un-contracted stranded gas and has identified a series of business development activities which will provide long-term growth
      • Gasol has developed an alternative gas liquefaction system – “NSPS TM ” but is considering other floating technological solutions
      • Mid and downstream activities will create value – by connecting African gas to high value markets in Europe, US and Asia
      • Strong alignment with host government priorities to develop domestic gas sector
      • Gasol is an exciting “ground floor” opportunity
      • We aim to be the premier Africa-focused gas independent
    • 23. Gasol Contact Details Gasol plc 40 New Bond Street, London, W1S 2RX. United Kingdom. T: +44 (0)20 7290 3300 W : Slide