Santos Limited · ASX:STO
Santos — LNG Supplies for Asian Markets Conference 2012
23 slides from Santos's conference presentation, Mar 6, 2012
Slide 1: ASX Market Announcements cover note
Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000 GPO Box 2455 Adelaide South Australia 5001 Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723 TO: ASX Market Announcements ASX Limited FROM: Company Secretary DATE: 6 March 2012 SUBJECT: Impa
Slide 2: Disclaimer and Important Notice
Disclaimer and Important Notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which c
Slide 3: Urbanisation favours natural gas
Good morning everyone and thank you for your kind introduction. Every week from across the globe there are about 1.3 million new people moving to cities. That's around 70 million people per year, decade after decade migrating from rural areas to cities. This is the largest movement of people to citi
Slide 4: The growth of the LNG industry over the last 30 years
The growth of the LNG industry over the last 30 years has been remarkable – and has transformed the energy markets of the 22 countries who rely on liquefied natural gas for at least a share of their fuel mix. Yet, from its origins in Algeria and Alaska, by 1980 LNG still only represented just 2% of
Slide 5: Timeline of Australian LNG growth
As you can see from this timeline, the seemingly overnight growth in Australian LNG has truly been extraordinary! If we put Darwin LNG aside for the moment, then for over 20 years, Australian LNG was a one horse race. Turning the clock to 2018, another 8 projects under construction are expected to b
Slide 6: Conventional west and CSG-to-LNG east projects
Here is another view of the same data that shows that the story of Australia’s LNG industry is one of conventional LNG projects to the west and the pioneering Coal Seam Gas to LNG projects over to the east. The North West Shelf project is, if you like, the grandfather of the Australian LNG industry
Slide 7: Strong demand driven by Asia
We see three key factors. First of all, strong demand. And on just about every measure, the driver for future LNG demand comes from Asia. These forecasts are from the Energy Information Administration, which is the statistical arm of the US Department of Energy. Between now and 2035, Asia is expecte
Slide 8: Asian LNG marketplace segments
This slide shows you how we look at the Asian LNG marketplace. The first group is the Established LNG markets of Japan, South Korea and Taiwan. These established countries are the bedrock of Asian LNG. Their LNG demand is driven by the power generation sector and they continue to seek security of su
Slide 9: South East Asia regasification terminals
This map of South East Asia shows existing and proposed regasification terminals, including floating regas which is fantastic technology. In simple terms, floating regasificiation is where a LNG tanker unloads offshore directly onto a floating regasification vessel, connected by pipe to the onshore
Slide 10: Quality of Australia's gas resources
The quality of Australia’s gas resources is the second important factor that we see. Australian resources will play a significant role in meeting Asian energy demand. Australia is on the doorstep of Asia, but its not just its close proximity that makes it competitive. According to government sources
Slide 11: Oil-linked pricing in Asia
And so where are we? • We see unprecedented Asian demand. • We know that Australian gas is abundant and available. • The third factor is price. You must have the right price to support the size and scale of Australian green field projects. It has been the oil-linked pricing and the opportunity of eq
Slide 12: US shale gas exports into Asia
There has been a lot in the news recently about US shale gas exports into Asian oil-linked markets and we are often asked about the impact of LNG supplies from North America on Asian market dynamics and ultimately – Asia Pacific LNG Pricing. The debate has shifted from “IF” North American exports wi
Slide 13: How Santos fits: Australia, LNG and Asia
I’d like if I can to say a few words on how Santos fits into this picture. • Australia: • LNG; and • Asia It is on each of these three strategic pillars that Santos has constructed its strategy which is to: • Safely deliver our Australian base business • Grow our LNG business, and •Thirdly, our Asia
Slide 14: Santos equity stakes in four LNG projects
Santos has equity stakes in 4 LNG projects: •The operational Darwin LNG project led by Conoco Phillips. •The sanctioned PNG LNG project led by Exxon Mobil. •The floating Bonaparte LNG project with our partners GDF Suez. And of particular interest today is the 16 billion dollar - two train - Santos G
Slide 15: Long-term contracts with Asian LNG customers
Darwin’s output is sold under long-term contracts to Tokyo Electric and Tokyo Gas. PNG LNG has signed similar long-term agreements with Tokyo Electric, Osaka Gas, Sinopec and CPC in Taiwan. And GLNG has sold 7 million tonnes per annum to PETRONAS and KOGAS. This means Santos has strong relationships
Slide 16: Australia's CSG-to-LNG projects and GLNG
In 2007, Santos was first to announce plans for our pioneering CSG-to-LNG project. Along the way we have been joined by world class partners: Petronas, Total and KOGAS. This map shows the location of Australia’s CSG-to-LNG projects. All the plants are located on Curtis Island in the port of Gladston
Slide 17: Aerial view of the GLNG site, Curtis Island
This photograph shows an aerial view of the GLNG site on Curtis Island. Quickly, I would just like to very briefly take you through a few highlights from this site. As you look at the photograph, on the top left, that is where our LNG offloading jetty will be located. Moving to the right, we'll have
Slide 18: Production wells and agriculture co-existence
See if you can spot one of our production wells in the distance? At Santos we are committed to working alongside agriculture. This well in our Queensland operations is typical of the size of the footprint in which we would occupy. Wells typically operate in this condition for up to 20 years – during
Slide 19: Coal seam gas to LNG process
Coal seam gas is simply methane. So the liquefaction plant for producing LNG from conventional gas and CSG is essentially identical. The difference is that, for coal seam gas, more infrastructure is required upstream to gather and compress the natural gas before it reaches the liquefaction plant. Ad
Slide 20: Indonesia's CSG potential
As Indonesia’s conventional oil and gas fields reach maturity and decline, the Indonesian government has high hopes for the transformational potential of its own CSG potential. Although resource estimates vary, projections of potential CSG resources in Indonesia of 450 Tcf are common. The vast major
Slide 21: Santos in Indonesia
Indonesia has been a focus area for Santos since the early 1990s, with existing production coming from Maleo, Oyong and Wortel fields, in addition to the Peluang gas development which we aim to sanction later this year. We view our entry into Indonesian CSG as a natural extension of our significant
Slide 22: Asia as a key part of Santos' strategy
As you can see, Asia is a key part of the Santos vision and strategy, and will be supported by our new office in Singapore opened earlier this year. As Asia continues to grow, Australian LNG will play a key role in providing our neighbours with a cleaner burning fuel that’s both available and afford
Slide 23: Impact of unconventional gas on Australian LNG supply
Santos We have the energy. ESG Drilling; Arcadia Valley, Queensland Impact of unconventional gas on Australian LNG supply Martyn Eames — Vice President Asia Pacific 6 March 2012 22
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