LNG:
Reliable Gas Supply for the Northeast U.S.
116th New England Restructuring Roundtable
Friday, April 30, 2010
Phil Ribbeck
President
Repsol Energy North America Corporation
Forward-looking Statements
This document and the other statements we make contain
forward looking statements, which include any statements
concerning our expectations, beliefs, plans, objectives, goals,
strategies, future events or performance and underlying
assumptions and other statements that are not historical facts.
Forward-looking statements are often accompanied by words
such as "estimate," "project," "predict," "believe," "expect,"
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that convey the uncertainty of future events or outcomes. These
statements involve risks and uncertainties, including, but not
limited to, those described in our most recent Form 10-K and
other filings with the Securities and Exchange Commission. If
one or more of these risks or uncertainties materialize (or the
consequences of such a development changes), or should
underlying assumptions prove incorrect, actual outcomes may
vary materially from those forecasted or expected. Repsol YPF
disclaims any intention or obligation to update publicly or revise
such statements, whether as a result of new information, future
events or otherwise.
Let’s Talk About…
•
Repsol – who we are
•
LNG – what has it done for New England; do we need it here?
•
LNG – what will be available
•
Wrap it up
Repsol – who we are
•
Fully integrated oil & gas company headquartered in Madrid, Spain; operating globally
•
•
Over 80 years experience in the oil and gas industry
Over 35,000 employees
•
Operations in more than 30 countries
•
Growing North American asset base:
– Producing E&P assets and exploration acreage in the Gulf of Mexico
– Offshore exploration acreage in Alaska and Newfoundland/Labradour
– CanaportTM LNG regasification terminal located in Saint John, NB – serves
Northeast USA with 1 BCFD firm capability and 10 BCF of storage
– Portfolio of LNG and gas supply contracts and firm transportation allow
Repsol to serve US Northeast markets reliably with great flexibility
– Full-service gas trading and origination organization
New LNG Facility Output - Winter 09/10
What has new LNG done for New England?
•
Improved the dependability and flexibility of the pipeline delivery system
– Formerly, there were bottlenecks in Winter to deliver more natural gas in New
England
– New LNG supplies are coming in north of such bottlenecks through existing
systems that expanded without interrupting the region’s activities
– Delivered new secure natural gas supplies
– Created a new player that is changing the region’s business
How has that benefited New England?
Decreased Price Spikes for one
18.000
60
16.000
50
14.000
40
10.000
30
8.000
6.000
20
4.000
10
2.000
0.000
0
1/1
1/11
1/21
1/31
2/10
2/20
January thru Feb 2010
AGT/TGP Z6 Price 2008-09
Boston Avg. Temp 08/09
AGT/TGP Z6 Price 2009-10
Boston Avg. Temp 09/10
Temp
MMBTU
12.000
What else has new LNG done?
No oil fired generation this past Winter
1,200
1,000
MDth/d
800
600
400
200
0
NOV
DEC
2008/09
JAN
2009/10
FEB
MAR
North America’s LNG Imports
New LNG Supply vs. 2007 Levels
Wrapping it up
• New LNG supplies are accessible to New England Market without new build issues
• LNG supplies from the north have expanded the current infrastructure’s dependability and capability
• The analysts project a global oversupply of LNG during the next 3 – 5 years, at least
• Amount of new LNG regas capacity in New England exceeds projected demand for quite awhile
• OK, I am biased, but Repsol has incredible ability to meet the market’s needs for a long time to come