BP plc · LSE:BP.
BP — Investor Day (2004)
14 slides from BP's investor day presentation, Aug 8, 2004
Slide 1: Ralph Alexander: Gas, Power & Renewables
RALPH ALEXANDER Gas, Power & Renewables Ralph Alexander gas, power & renewables Ladies and Gentlemen - Welcome back to the second half of our program which will focus on the customer facing business. Today, it’s a real pleasure to update you on a young and growing part of BP - Gas, Power and Renewab
Slide 2: Participating at Scale
Participating at Scale participating at scale z market leadership in gas z market leadership in North American NGLs z LNG plans accelerating Gas, Power and Renewables is now participating at scale: • we are now number 1 in gas sales among the majors globally • number 1 in NGL sales in North America
Slide 3: Group Gas Sales
Group Gas Sales group gas sales bcfd 30 >20% annual growth 25 20 15 10 5 00 01 02 03 As the slide behind me shows. Over the last few years we have been busy capturing market share in gas. Today we lead the majors in gas sales having grown by more than 20% a year since 2000. Most of our growth has be
Slide 4: Going Forward
Going Forward going forward z grow gas sales volumes 3-5% per year z increase share of target market segments z deliver economies of scale Going forward, we are going to continue to grow. We plan to grow ahead of the market. Not at the 20% a year we have experienced but at a more modest rate of 3 -
Slide 5: Group NGL Sales
of these factors means that we should retain more of the incremental margin, improving cash flow and returns in the Segment. Group NGL Sales group NGL sales kbd 600 Equity NGL Production 13% annual growth 400 200 00 01 02 03 The story for Natural Gas Liquids is similar. We have increased our sales o
Slide 6: Going Forward
Going Forward going forward z grow NGL sales volume around 5% per year z commission new plants z increase share of target market segments z deliver economies of scale Looking forward, we anticipate that global demand for NGLs will grow at around 4% a year. Against this backdrop, we expect to grow ou
Slide 7: LNG
So, the story of NGLs is clear. It’s about growing production volumes with our new plants, increased sales into targeted market segments and delivering economies of scale. LNG LNG z capture markets ahead of supply z maximise gas resource value z focus on key markets z 35 bcf/d market potential Turni
Slide 8: Atlantic Basin
While demand for LNG is global - six markets - the USA, UK, Spain, Japan, South Korea and China will account for some 75% of this growth, and this, of course, focuses our activity. Atlantic Basin Atlantic Basin Isle of Grain New Jersey Bilbao Cove Point Egypt Adgas Trinidad existing LNG supply marke
Slide 9: Pacific Basin
This location is distinctive because it will serve the premium North East market and we will reach that market through the 2 bcf/d of pipeline capacity that is adjacent to the site. Moving across to the UK. Sonatrach and BP, have acquired 450 mmcf/d of capacity rights in the Isle of Grain terminal w
Slide 10: LNG: Markets Ahead of Supply
partners will supply the gas to Guangdong from our North West Shelf project in Australia. Tangguh will supply China’s second import terminal at Fuijan – where land reclamation is already underway. In South Korea Tangguh has secured sales to SK and Posco at their new terminal at Kwangyang. On the oth
Slide 11: LNG: Markets Ahead of Supply
I said then, that we expected annual average growth of equity gas into plant – the measure we believe best reflects value - of around 15% to 2005. Rolling one year forward this is where we stand. LNG: Markets Ahead of Supply LNG: markets ahead of supply BP gas supplied to plants markets captured mmc
Slide 12: Our LNG strategy is all about ensuring our equity gas has a market
Our LNG strategy is all about ensuring that our equity gas will always have a market to flow into. As you can see from the right hand side of the slide, We have continued to capture markets. We currently have about 500 mmcf/d more in market available than we have in committed equity production to su
Slide 13: Solar
Solar solar z business restructured z cost base reduced z uncompetitive technologies eliminated In 2003 we radically restructured the business, reducing the cost base and eliminating uncompetitive technology from our portfolio. At the same time we invested in new higher efficiency products and grew
Slide 14: Summary
Summary summary z deliver marketing plans z leverage economies of scale z capture LNG markets ahead of supply So, in summary, 2003 was a busy year for Gas, Power and Renewables. A year that has positioned us for growth. To deliver that growth we have to do three things; We’ve got to continue to deli