Petrochina Co., Ltd. Class A · SSE:601857
Petrochina Co., Ltd. Class A — Investor Presentation (July 2002)
14 slides from Petrochina Co., Ltd. Class A's investor presentation, Jul 4, 2002
Slide 1: West–East Pipeline Project
West–East Pipeline Project
Slide 2: West–East Pipeline Project, July 2002
West–East Pipeline Project 4 July 2002
Slide 3: Summary
Summary Signing of Joint Venture Framework Agreement (“JVFA”) for West-East Pipeline Project (“Project”) Commencement of full construction PetroChina with 50% interest A group of international energy companies (“the Consortium”), led by Shell, Gazprom and ExxonMobil, with 45% interest Sinopec with 5
Slide 4: Project overview
Project overview World-class integrated gas project: development and production of natural gas in Tarim Basin construction and operation of 4,000km gas pipeline marketing and sale of gas to downstream customers Total project investment for upstream and pipeline of approximately US$8.5 billion Sectio
Slide 5: Benefits for PetroChina
Benefits for PetroChina Monetising gas reserves in western China Earnings growth Attractive returns Partnerships with large international oil companies Leadership in growing gas market in China
Slide 6: Formation of strategic partnership with international companies
Formation of strategic partnership with international companies Share project risks and financial commitment Benefit from international experience Leverage on each other’s technical and operational expertise Create opportunities for future co-operation
Slide 7: The Consortium
The Consortium Leading international energy companies with international experience, financial strength, technical and operating expertise Lead partners Shell Gazprom ExxonMobil
Slide 8: Upstream projects
Upstream projects Joint development and production of gas in the Kuche-Tabei Area of Tarim Basin Ordos Basin to supply gas for the first 15 months Kuche-Tabei Area of Tarim Basin currently has proven recoverable gas reserves of 304bcm - sufficient to supply the pipeline for 20 years Ongoing explorat
Slide 9: Pipeline construction
Pipeline construction 4,000 km pipeline from Lunnan to Shanghai Designed capacity of 12bcm per annum can be expanded to 18bcm per annum Agreed HSES Standards ESIA and ESMP conducted prior to construction Demonstrating PetroChina’s pursuit of social and environmental excellence
Slide 10: Downstream market
Downstream market Target markets in Eastern China: Shanghai, Anhui, Jiangsu, Zhejiang and Henan Strong growth of gas demand anticipated with 45 LOIs signed Demand could reach 18.2bcm by 2007, far exceeding the annual gas supply of 12bcm Market demand vs W-E gas supply 2007 usage breakdown bcm Chemic
Slide 11: Downstream gas pricing
Downstream gas pricing Average city-gate guidance price of RMB1.29/m3 Affordable to downstream customers and competitive versus alternative fuels End–user prices for alternative fuels 3 RMB/m 4 3.6 3 2.2 2 1.8 (1) 2.2 1.29 1.6 1 0.84 1.2 0.45 0 West-East gas HFO LPG Coal gas Production price Transpo
Slide 12: Financing
Financing Upstream investment of approximately US$3.3 billion Pipeline investment of approximately US$5.2 billion 35% equity; 65% debt re-financing post construction PetroChina’s total equity investment of US$2.7 billion
Slide 13: Acceleration of natural gas business development
Acceleration of natural gas business development West-East Pipeline Project will accelerate PetroChina’s natural gas business development Marketable gas production volume for PetroChina bcm 40 of 25 % 31 CAGR 30 22 20 18 16 10 0 2002 2003 2004 2005
Slide 14: Thank you
Thank you
PetroChina Company — Investor Presentation (July 2002) on 6ix