Apa Group · ASX:APA
Apa — Eastern Australia's Energy Markets Outlook 2014
18 slides from Apa's conference presentation, Sep 18, 2014
Slide 1: The changing face of gas transmission services
For personal use only The changing face of gas transmission services Rob Wheals, Group Executive Transmission Eastern Australia's Energy Markets Outlook 2014, Sydney 18 September 2014
Slide 2: About APA Group
About APA Group For personal use only APA is Australia’s largest gas infrastructure business APA (September 2014) Market A$6.4 billion APA is an integrated operating business with direct capitalisation management and operational control over its assets S&P/ASX 50 MSCI All World Index; and investment
Slide 3: APA – Australia's largest gas pipeline owner
APA – Australia’s largest gas pipeline owner For personal use only under development APA Group, September 2014 3
Slide 4: APA in eastern Australia
APA in eastern Australia For personal use only > 7,000 km across 5 states and territories Configuration: – 5 interconnected APA Pipelines; – 98 Delivery Points; – 30 Receipt Points. Bi-directional flow: – Vic NSW interconnect - operational – SWQP, BWP - commissioning – MSP, RBP - under construction
Slide 5: Eastern Australia gas market – supply challenges
Eastern Australia gas market – supply challenges For personal use only More than tripling of east coast demand due to LNG exports Supply sufficient for east coast demand for ~20 years BUT does not allow for any increase in demand, or any decline in reserves, or any demand beyond 20 years Source: AEM
Slide 6: Gas market - changing dynamics
Gas market - changing dynamics For personal use only Step change in gas demand Gas price linkage to global markets Diversified supply portfolios ? Changes in upstream contracting Changing outlook for gas-fired power ? generation ? LNG ramp-up & supply interruption Gas supply & demand hubs Shorter te
Slide 7: Changing gas market – customer requirements
Changing gas market – customer requirements For personal use only From few options … Portfolio optimisation Flexibility of moving gas from multiple supply sources to multiple markets New enhanced services e.g. load factor management … to multiple options! Storage e.g. for peaking & security of suppl
Slide 8: Essential gas market characteristics
Essential gas market characteristics For personal use only Innovation Transparency Competition Flexibility Essential characteristics Investment These factors will drive depth and liquidity in the market APA Group, September 2014 8
Slide 9: Current APA activities and services
Current APA activities and services For personal use only Innovation Transparency Grid services – multi receipt/ Capacity trading delivery points website Storage services Contract terms available on APA’s website Competition Interconnection basin on basin Flexibility Essential competition Flexible t
Slide 10: Transparency – information availability initiatives
Transparency – information availability initiatives For personal use only Currently published to Gas Market Bulletin Board – Pipeline capacity – Nominations (3-day outlook moving to 7) – Actual pipeline flows Proposed* additional pipeline information availability: – Available firm (spare) capacity –
Slide 11: Flexibility - market based products & services
Flexibility - market based products & services For personal use only Capacity trading service – Facilitates the secondary trading of firm transportation rights on APA’s systems – Reduced administrative burden and risk for seller – Increased confidentiality and options for buyer – Capacity Trading we
Slide 12: Investment - Eastern Australia growth capital projects
Investment - Eastern Australia growth capital projects For personal use only APA Group, September 2014 12
Slide 13: Innovation - responding to customer needs
Innovation - responding to customer needs For personal use only Customer solution - integrated suite Gas Demand basin centre of services – Storage – Bi-directional transportation services – Mix of ‘firm’ and ‘as available’ services – Across multiple pipelines STTM Storage Hub – Multiple receipt and
Slide 14: Possible future market design?
Possible future market design? For personal use only Gas commodity market ̶ Voluntary gas supply hubs (GSH’s) ̶ New Victorian GSH, potentially also Moomba ̶ Consolidate 3 nodes at Wallumbilla ̶ Localised demand balancing markets Pipeline capacity market ̶ Contract carriage model – supports firm capa
Slide 15: Possible future market design?
Possible future market design? For personal use only Brisbane balancing market Wallumbilla Moomba supply hub reference hub Sydney Adelaide balancing balancing market market Wollert? supply hub Melbourne balancing market APA Group, September 2014 15
Slide 16: Conclusion
Conclusion For personal use only Dynamic Australian gas market Significant drivers of future change & growth Existing infrastructure in place to deliver gas to all major markets Further capacity expansion in line with customer demand APA is responding to market changes with … innovative services and
Slide 17: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) the responsible entity of the Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) (APA Group). Summary information: This presentation contains su
Slide 18: Delivering Australia's Energy
For personal use only Delivering Australia’s Energy For further information visit APA’s website www.apa.com.au
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