LNG as an alternative fuel for the Italian market Alessandro Gaeta SVP Primary Logistics eni r&mc. Rome, 11 June 2015

Transcription

1 as an alternative fuel for the Italian market Alessandro Gaeta SVP Primary Logistics eni r&mc Rome, 11 June

2 eni in : a large player in the international market 2

3 eni promotes sustainable mobility, and it s investing in alternative fuels to maintain market leadership in Italy Italian energy demand for transports (by fuel) eni initiatives for sustainable mobility Mboe/d 1,0 0,8 0,6 0,4 Efficiency Biofuels Electric Power CNG potential Bio-fuels: Venice refinery conversion Gela refinery conversion R&D on II and III generation bio-fuels Electric Power: strategic agreement with Enel for installing 40 fast recharge points Hydrogen: zero regio project (2 pilot pos) Car sharing ( enjoy Milan, Rome, Florence) GPL: ~20% market share 0,2 0, Oil products CNG: supply >50% of the market, ~180 eni branded service stations : launch of first /LCNG service station 3

4 pros in downstream applications: high environmental sustainability and relative convenience NG environmental impact Lower CO 2 emissions than coal (-70%), diesel (-30%), gasoline (-25%) and LPG (-16%) Lower NOx emissions than gasoline (-80%), gasoil and LPG (-50%) Negligible presence of carbon residues, benzene and particulate matter in emissions No sulfur content Natural gas is the most environmentally friendly fossil fuel, and Road transport Shipping Other uses 2015 Italian end-user prices for energy content by fuel Diesel Marine Diesel Gasoil HSFO LPG convenient saving = 4

5 convenience as a bunker fuel dependent on cost of compliance to new environmental regulation and price spreads Environmental regulation in shipping Annex VI to IMO MARPOL limits the main air pollutants contained in ships exhaust gas: Sulphur Oxides (SOx) and particulate matter (0,5% maximum sulphur content of the fuel by 2020, 2025 the latest*) Nitrous Oxides (NOx) emissions from marine diesel engines in designated ECAs Introduction of emission control areas (ECAs) Directive 2012/33 to limit sulphur content in bunker fuel to 0,5% by 2020 in EU waters Expected new regulation on GHG emissions reduction in the shipping industry (CO2) Bunker fuels relative convenience post 2020 cost of compliance MDO HSFO saving Tighter environmental regulations and price differences between conventional fuels and natural gas to drive relative convenience note: * depending on the outcome of a review, to be concluded by 2018, as to the availability of the required bunker fuel 5

6 eni estimates 2030 demand for transport in Italy at about 10% (up to 20%) of total demand of energy for transport Enabling factors Infrastructure development and end-users transition to 1 availability Balanced international market 2 relative convenience vs. oil alternatives 3 Complete and favorable safety & regulatory framework for downstream applications 4 Technology availability at competitive prices (new build and retrofit) Positive outlook Gas vs oil price differential to stay, even in new low oil price scenario Maintained fiscal incentive Defined new development plan Harmonized technical standards and safety provisions Funding available Progress in truck and marine engine design technologies, shipbuilding and cryogenics Demand to Italian demand for transport at about 10% of total demand of energy for transport, potential demand up to 20% /LCNG for road transport to account for about 80% 6

7 as an alternative fuel has a big potential, but it is still at an early stage of becoming mainstream: drivers for investment eni drivers for downstream infrastructure development Current eni initiatives Reliable and competitive supply Limited capital investment EU co-funding (i.e. CEF TEN-T Motorways of the Sea - GAINN) Scalable solutions Manageable risk Co-development with end-users (break chicken-egg issue) Co-location for multi-modal use (i.e. target road and marine transport) Partnership with local authorities and stakeholders (i.e. bunker vessel owners) Piacenza: first Italian /LCNG Station launched by eni in 2014 Pontedera: /LCNG Station Livorno: modular storage tank (GAINN initiative sponsored by Costiero Gas Livorno) operational planned Venezia: /LCNG Station for both road and marine transport (GAINN initiative sponsored by eni) Gela: feasibility study for a liquefaction, storage and distribution facility of, as well as feasibility of CNG application 7

8 eni is engaged in the development of as an alternative fuel, and it is looking for opportunities across the value chain Pipe transport End-uses shipping regasification Distribution NG civil use NG industrial NG production Liquefaction CNG transport storage transport via ship distribution Bunker Light vehicles LCNG Natural Gas (NG) Small scale liquefaction plant and storage Heavy-duty vehicles Liquefied Natural Gas () eni areas of interest transport via tanker Industrial 8

9 for further information visit us at our stand at the fair 9