StatoilHydro and changes in the German natural gas market
Helge Gabrielsen Hamburg, 1 October 2009 Agenda
StatoilHydro & the natural gas business
Statoil Deutschland GmbH
Recent developments in the German gas market This is StatoilHydro
An international integrated energy company based in Norway The world’s largest deepwater operator and the world’s third largest net seller of crude oil Equity production of 1.95 million barrels of oil equivalent per day and more than 6 billion boe in proven reserves About 29,500 employees in 40 countries StatoilHydro’s natural gas business
Largest gas player in Western Europe Strong gas position on the Norwegian continental shelf Building international gas value chains The pipeline highways to Europe Snøhvit Melkøya
Export pipelines to Germany, Belgium, France and the UK Norne Åsgard Heidrun Kristin Haltenpipe Åsgard transport ~ 7,800 km of gas pipelines Tjeldbergodden ~ 120 BCM of capacity Ormen Lange Statfjord Nyhamna Tampen Link Troll Gassled* operated by Gassco, Kollsnes Vesterled StatoilHydro share 32.1% Kårstø Sleipner St Fergus Europipe II Ekofisk StatoilHydro supplies around 14 per cent Europipe I of current consumption in EU ** and Langeled Norpipe around 80 per cent of NCS gas volumes Zeepipe Franpipe Emden/Dornum
Easington Zeebrugge Dunkerque
*Includes Zeepipe, Europipe I, Europipe II, Franpipe, Statpipe, transport-related facilities at Kårstø, Vesterled, Oseberg gas transport, Åsgard Transport, Norpipe, Kollsnes, Langeled, Tampen Link ** Based on current contracts/short-term sales (2007) ; StatoilHydro including SDFI
Integrated and flexible infrastructure Snøhvit Melkøya
14Historic0 production and further potential according to the Norwegian Ministry of Petroleum and Energy
12GS0m ³ / y Norne
Åsgard Heidrun 100 Kristin Ormen Lange Haltenpipe Åsgard transport Tjeldbergodden 80 Snøhvit Ormen Lange Oseberg Statfjord Åsgard Nyhamna 60 Tampen Link Troll
Kollsnes Troll 40 Vesterled Sleipner Kårstø Ekofisk/Frigg Sleipner 20 St Fergus Europipe II Ekofisk Statfjord/Gullfaks/Heimdal Europipe I 0 Langeled 8 1 4 7 0 3 6 9 2 8 1 4 7 05 20 975 99 Norpipe 1 197 198 198 198 1 199 199 199 200 20 200 201 201 201 20 Zeepipe Franpipe Source: NPD 2008 Emden/Dornum Easington Zeebrugge Dunkerque Important gas fields on the NCS
Troll StatoilHydro’s share:30,6 %
Ormen Lange StatoilHydro’s share:28,9 %
Åsgard Total remaining gas StatoilHydro’s share:34,6 % reserves Total gas reserves Snøhvit StatoilHydro’s share:33,5 %
Oseberg StatoilHydro’s share:49,3 %
0 200 400 600 800 1000 1200 1400 Source: NPD. Reserve estimates 31.12.2008 bcm German – Norwegian gas relations Norwegian gas exports
UK 29 % Germany
Norway (85 bcm) Other Continent
Russia (150 bcm) German gas supply
Domestic 27 % Norway
Other imports Caspian region
LNG Algeria (60) Libya Egypt/Middle East
2007 numbers Statoil Deutschland GmbH 100% subsidiary of StatoilHydro ASA Located in Emden (Ostfriesland) with 19 employees Ownerships in - Etzel (Storage System Operator – SSO) - Netra (Transport System Operator – TSO) Turnover: app. 100 Mill. EUR (2008) Established April 1984 in Düsseldorf SHD celebrates 25 years Gas storage - Etzel
The operator of the Etzel Gas-Lager GmbH (EGL) Statoil Deutschland has a 24% share in EGL Storage capacity of 512 MSm3 (SH ≈ 120 MSm3) Currently investing in an increased capacity (Etzel Expansion Project)
⇒ Strategic importance at the cross-road for natural gas from north & east
Gas transportation - Netra
Statoil Deutschland has 30% ownershare in Netra GmbH (app. 9,5 BCM) Operated by Gasunie Deutschland Currently investing in expanded transportation capacity (more entry capacity) Major changes in regulatory environment ongoing
European gas markets continue to integrate
European regulation improves access to markets
EU continues drive towards liberalisation
Barriers to internal market still remain
Transition is moving slowly Drehkreuz Ostfriesland Liquid gas markets – now also Germany?
Development of NCS liquid market places for gas: Liquidity Infrastructure Regulation TTF Gaspool NBP Enablers: ZHUB EU NCG BNetzA PEGs Current market areas
H-Gas Norddeutschland Statoil Deutschland Gasunie Deutschland DONG Energy Pipelines Ontras – VNG Gastransport Wingas Transport Net Connect Germany E.ON Gastransport Bayernets Marktgebiet Süddeutschland RWE Transportnetz Gas Consolidation of market areas
GASPOOL (start 1 October 2009) Statoil Deutschland Gasunie Deutschland DONG Energy Pipelines Ontras – VNG Gastransport Wingas Transport Net Connect Germany (NCG) E.ON Gas Transport Gaz de France Transport Eni Deutschland GVS Gasversorgung Bayerngas RWE Transportnetz Gas (for sale)? Main messages
Mutual dependence between Norway and Germany on natural gas The German natural gas market is (finally?) moving towards more liberalization