Meeting Indias LNG Shipping Demand

GROWTH IN INDIAN LNG IMPORTS (MT)

0

2

4

6

8

10

12

14

16

18

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

5.06

6.81

8.32 8.06 8.83 8.95

9.7

14.85

16.58

Series1

Indian Energy consumption

Source Percentage

Coal 44

Petroleum and products 22

Biomass and waste 22

Natural gas 07

Hydroelectric 03

Nuclear 01

Other renewable 01

CURRENT & PROPOSED LNG TERMINAL CAPACITY

Existing LNG Terminal Capacity Proposed LNG Terminal Capacity

PLL Dahej ( addn) 2.5 mmtpa

Ennore 5.0 mmtpa

Mangalore 5.0 mmtpa

Gangavaram 5.0 mmtpa

Mundra 5.0 mmtpa

Kakinada 3.5 mmtpa

Paradip 4.8 mmtpa

Total 30.8 mmtpa

PLL Dahej 12.5 mmtpa

Shell Hazira 5.0 mmtpa

Dabhol 5.0 mmtpa

PLL Kochi 5.0 mmtpa

Total 27.5 mmtpa

LNG Imports on the cards/contracted

Company Quantity Source

GAIL (Dabhol,Dahej)

5.8 MMTPA

Sabine Pass, Cove Point, USA

IOC (Ennore) 1.2 MMTPA

Pacific North West, Canada

IOC (Ennore) 0.7 MMTPA

Cameroon

GSPC (Dabhol) 1.3 MMTPA

NA

ONGC (Mangalore)

5 MMTPA Mozambique

All these imports totaling to about 14 mmtpa are expected to complete by 2017-18

Additional quantities being sourced through spot or new supply contracts.

LNG Tanker Requirement

Existing requirement

Met by 3 LNG Tankers which are on long-term time charter( importing 7.5mmtpa)

Balance quantity of about 9 mmtpa was met through spot cargo lifting basis ex-ship supply

4th LNG Tanker will be delivered in Sept. 2016 to lift 1.44 mmtpa

Future requirement

GAIL- 9 LNG Tankers

IOC- 3 LNG Tankers

ONGC- 3 LNG Tankers

Others- 5 LNG Tankers

Total 20 LNG Tankers

LNG Tanker availability To meet the required vessel delivery timelines for

long-term contracts, sourcing of LNG Tankers from International shipyards essential.

New built LNG tanker requirement and consequently shipyard slot would depend on schedule of new LNG liquefaction terminals going on stream and contracts firmed up.

Availability of existing LNG tankers on spot basis.

Indian LNG tanker shipbuilding at only formative stage, but an important option.

Indian Shipyard Capability Have not constructed LNG /LPG tankers but have built

Crude oil tankers and bulk carriers. Three shipyards keen in building LNG Tankers Some yards have the required infrastructure including

block making facility, dry-dock, crainage etc and others are fast tracking infrastructure.

In process of entering into agreement with GTT for cargo containment system after completing mock-up test.

In discussion with foreign shipyard for entering into binding agreement for transfer of know-how.

Expected lead time for delivery is about 4-5 years.

Measures to promote LNG shipbuilding

Preference for LNG Import Contracts on FOB terms enable decision for shipping with Indian entities.

Mandate for Make in India for part of the LNG tanker requirement to start with.

Support at diplomatic level for seeking Collaboration for transfer of know-how.

Assistance in securing required construction timeline and cost implications in view of first LNG shipbuilding endeavour.

Sustainable partnership for LNG Shipping sector

Currently SCI is working with Japanese shipping companies under SPCs for long term time charter(25 years) of 4 LNG Tankers. Two SPCs have completed a decade of operations.

Similar collaboration model being envisaged for LNG shipbuilding on long-term basis.

About SCI

SCI was incorporated on 02.10.1961

Presently owns 72 vessels, total 5.82 million dead weight tonnage (dwt)

SCIs fleet - 38% of Indian tonnage (dwt)

Manages another 42 vessels on behalf of Organisations like A&N, GSI,

ONGC, PLL etc.

Most diversified Indian shipping company

Only Indian shipping company with LNG expertise

Average age of SCI fleet is about 9 years which is well above Indian

average of 17 years.

SCIs LNG Forays

First LNG Tanker project LNG Lakshmi in 1998 with 20% stake exited due to Enron debacle.

Successfully won Time charter agreement (TCA) for two LNG tankers for Petronet LNG Limited in 2001 under joint venture with Japanese Shipping Companies.

SS DISHA and SS RAAHI delivered in Jan and December 2004 and will now be completing 10 years of operation.

Third LNG Tanker TCA for Petronet LNG Limited awarded after competitive bidding in 2006 and LNG Tanker MT Aseem in operation from 2009

TCA for fourth LNG Tanker MT Prachi awarded in 2013 and will be delivered in 3rd qrtr 2016

MOU signed with GAIL for working together for transportation of 5.3 million metric tons of LNG from Sabine Pass and Cove Point terminal, USA to India with an option of taking upto 26% stake in ownership of 9 LNG tankers.

SCIs LNG Transportation Experience & skills acquired

SCI is independently managing LNG tankers SS Disha and SS Raahi on board and ashore from January 2009 and MT Aseem from March 2013.

SCI Will manage 4th LNG Tanker MT Prachi from its delivery.

Developed a pool of trained and experienced officers and ratings for both steam and Duel Fuel Diesel Electric LNG Tankers

Supervised construction of 4 LNG Tankers at Shipyards and the construction of the 5th LNG tanker will also be supervised shortly.

Attended over 5 dry docking of the LNG Tankers through which adequate expertise is developed.

Developed rapport with spares and stores suppliers and executed contracts with key original equipment makers (OEMs) and service providers.

SCI has participated in achieving financial closure for the shipping project and has understanding relating to various agreements/documentation

Thank You