Blue Energy Limited · ASX:BLU
Blue Energy — Energy and Mineral Conference, Brisbane 2019
22 slides from Blue Energy's conference presentation, Mar 27, 2019
Slide 1: Energy and Mineral Conference Brisbane
Energy and Mineral Conference Brisbane 27th March 2019 1
Slide 2: Legals
Legals Disclaimer This presentation may contain forward looking statements that are subject to risk factors associated with the gas and energy industry. It is believed that the expectations reflected in the statements contained within are reasonable, but they may be affected by a range of variables
Slide 3: The Compelling Global Case for More Gas
The Compelling Global Case for More Gas Improved Cleaner Air Power Quality Industry Plastics Residential 1
Slide 4: The Compelling Global Case for More Gas: Air quality
The Compelling Global Case for More Gas Air quality Fuel sw itching from coal to gas improves lives in Asia China is moving rapidly 2
Slide 5: The Compelling Global Case for More Gas: CO2 emissions
The Compelling Global Case for More Gas If CO2 really is creating more catastrophic w e a t h e r, t h e n w e s h o u l d f o l l o w t h e U S Gas use has reduced US CO 2 emissions to 1990 levels US GDP increased due to low cost gas/energy Te c h n o l o g y h a s d e l i v e r e d m o r e g a s 3
Slide 6: Growth in Industry, Plastics, Power and Residential sectors driving gas demand
The Compelling Global Case for More Gas G r o w t h i n I n d u s t r y, P l a s t i c s , P o w e r a n d Residential sectors driving gas demand Source: Shell/Wood Mack Q4 2018 Population growth drives consumption Plastics (eg 3D printing) needs gas 4
Slide 7: The Global Gas Majors believe in demand growth for gas
The Global Gas Majors believe in demand growth for gas Source: Shell/Wood Mack Q4 2018 Shell, BP and others see strong gas demand growth and are investing internationally to boost market share 5
Slide 8: Proposed renewable buildout has implications for Australia's grid stability
Proposed renewable buildout has implications f or Aust ral i a’s gri d st abi l i t y Source: AEMO 45,528 MW of new generation is proposed in Australia Gas is needed to firm-up solar and wind and stabilise the frequency of grid 6
Slide 9: Australia punches above its weight on renewables
Australia punches above its weight on renewables (…is that a good thing?) Source: Drax.com ….but our efforts will make zero difference to the global average temperature (Finkel) (Fun Fact: For Germany to meet its 60% renewable target by 2050, it requires a 15 fold increase in wind and solar – that’s
Slide 10: The impact of renewables on electricity price
The impact of renewables on electricity price …there is a correlation Source: J Sloan The Australian More renewables = higher electricity prices 8
Slide 11: Growing gas demand
Growing gas demand Global LNG supply gap widens LNG supply gap Source: Shell LNG Outlook 2019 Global gas giants developing supply capacity to fill the gap and build market share. 10
Slide 12: LNG Demand centres gearing up
LNG Demand centres gearing up Source: Shell LNG Outlook 2019 China and India are doubling import/regas capacity in the next 4 years 11
Slide 13: So how's the Domestic Gas Crisis going…
S o h o w ’s t h e D o m e s t i c G a s C r i s i s g o i n g … . Where will this volume come from? Un-developed Gas Reserves (Contingent and Prospective Resources) AEMO 2018 AEMO demand forecast doesn’t consider renewable build out/baseload retirement Drilling out Contingent Resources must be a pr
Slide 14: East Coast Gas 2P Reserves by Basin & Ownership
East Coast Gas 2P Reserves by Basin & Ownership Global gas players control 75% of reserves - and therefore control Domgas 10,790 PJ 31,100 PJ 199 PJ 1,034 PJ 37,879 PJ 502 2,272 PJ PJ Source: EnergyQuest 13
Slide 15: So where's the new gas supply coming from?
So w here’s t he new gas suppl y comi ng f rom? North Bowen –~15,000 PJ Discovered resource and producing Beetaloo Surat – Small blocks released North Galilee – ~3,500 PJ Bowen Proof of concept Galilee Beetaloo – 12,000+ PJ Timing, economics, Regulation Narrabri Narrabri – 2,254+ PJ ? Regulatory ris
Slide 16: East Coast Gas Prices
East Coast Gas Prices (now linked to oil price through LNG netback) • Domestic gas price is now based on competition for supply Export vs Domestic; Domestic vs Domestic. LNG exporters are able to play the arbitrage on domestic vs Spot LNG price – they can choose to supply either the domestic market
Slide 17: Blue's Portfolio
B l u e ’s P o r t f o l i o Reserves close to markets and exploration upside 16
Slide 18: The Bowen Basin and ATP
T h e B o w e n B a s i n a n d AT P 8 1 4 Key to long term East Coast gas security • Large discovered resource: 10,000 - 15,000 PJ development ready • Arrow (Shell/Petrochina) has 80% : Blue Energy has 20% • Arrow has an approved EIS for 6,625 wells and a pipeline licence • A producing basin • 40 T
Slide 19: Blue's Bowen Gas Resource now, PJ
B l u e ’s B o w e n G a s R e s o u r c e n o w 3 , 2 4 8 P J 18
Slide 20: Blue's progress
Blue’s progress • Blue increased Contingent Gas Resource by 237 PJ • Total 3C = 4,179 PJ (Bowen, Galilee and Surat Basins) • Total 2P+2C = 1,237 PJ • 2P = 71 PJ • 3P = 298 PJ • Assessed by NSAI – Dallas based top tier global certifier • Applied for Pipeline Survey Licence to connect Bowen Basin to W
Slide 21: Blue's Strategy and Catalysts
Blue’s Stra te gy a nd C a ta ly s ts • Focussed on monetising Bowen Basin gas - negotiating with gas buyers - progressing pipeline options - Increasing gas resources - Investigating gas fired generation to stabilise renewables • Capitalise on short east coast export and domestic market • Continual
Slide 22: 22
22
Blue Energy — Energy and Mineral Conference, Brisbane 2019 on 6ix