The Status of Russian Sulphur in the Global Market. Andrey Kremnev Gazprom Export LLC

Transcription

1 The Status of Russian Sulphur in the Global Market. Andrey Kremnev Gazprom Export LLC Sulphur 2011, Houston, November 7-10, 2011

2 Thous.t Sulphur Production in Russia The Pattern of Sulphur Production in Russia Oil Refining 8% Ore Leaching Industry 2% Outlook of the Sulphur Production Dynamics Gas Industry (Gazprom OJSC) 90% Total production growth in all industries 2011 to ,8 mln.tons 1000 Gazprom dobycha Astrakhan LLC 72% Gazprom dobycha Orenburg LLC 18% Ore Leaching Industry Oil Refining Gas Industry (Gazprom OJSC) 2

3 The setup of the Gazprom Group Sulphur Production and Sales Gazprom OJSC, the parent company Central Planning of the offtake of Sulphur, produced by its Subsidiaries Production of 5,9 mln.tons - 90% of all Sulphur, produced in Russia Gazprom dobycha Astrakhan LLC mln.tons (100% subsidiary ) А С Т Р А Х А Н Ь Main volumes of Sulphur produced are exported Gazprom dobycha Orenburg LLC mln.tons (100% subsidiary) Main volumes produced are sold at the domestic market Sales - 98% of all Sulphur, exported by Russia Gazprom export LLC (100% subsidiary) The sole exporter of the goods produced by the Gazprom Group (Sulphur included) Gazprom sulphur LLC (subsidiary of Gazenergoset OJSC) С Е Р А Specialized agent of Gazprom OJSC majoring in domestic sulphur supplies 3

4 Thous.t Sulphur Consumption in Russia With 6,6 mln.tons of Sulphur produced in Russia in 2010 the consumption amounted to 2,5 mln.tons (surplus of 4,1 mln.tons left for export) Sulphur Consumption Pattern in Russia by industries Paper-pulp Industry 11% Woodworking 5% Mining 4% Metallurgical and Construction Engineering 3% Chemical Industry 76% Other 1% Outlook of the Sulphur Consumption Dynamics in Russia Consumption Growth 2009 to ,4 mln.tons Azot OJSC, Kemerovo Metahim CJSC, Volkhov Meleuzovskie Mineral Fertilizers OJSC The main Sulphur Consumers in Russia Biysk Oleum Plant Ammofos OJSC, Cherepovets GHK BOR CJSC PPGHO OJSC, Krasnokamensk Apatit OJSC, Apatity Fosforit LLC (Kingisep) Balakovo Mineral Fertilizers LLC Evrochem - Belorechensk Mineral fertilizers OJSC Shcekinoazot OJSC Voskresensk Mineral Fertilizers OJSC 4

5 Utilization Worldwide Sulphur overproduction outlook for the year 2015 and further on stimulates us to consider different alternative ways to use Sulphur, including its burial ground disposal 5

6 Thous.t Production decrease by 25%,2-4q Production Gazprom dobycha Astrakhan LLC abt.4,8 mln.tons Production by types of Sulphur in 2011 Outlook of the Sulphur Production Dynamics within % 21% % liquid formed crushed liquid formed crushed 6

7 . Deliveries Due to limited capacity of the domestic market most of Sulphur is exported mln.t Storage capacity about 4 mln.t Dynamics Graph of production, sales and stocks forecast Standard Segments of Sulphur Deliveries 21% export domestic 79% stocks (start of the year) production sales Only technological stocks Thou.t Sulphur Export by types of product formed crushed (est) 7

8 Shipment from the Plant Shipments are subject to seasonal changes. They increase during navigation (April thru November) and decrease in winter to rail deliveries only Total Rail Water River Navigation Period 8 - Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

9 Logistics The export of Sulphur is performed by means of rail and water transportation through sea and river ports using diversified logistics schemes Southern Direction (Tunisia, Israel, Morocco, Brazil and others) 19 км Buzan Port км Russia: Kavkaz Port Ust-Donetsk Port Temruk Port (МК-14-10) км Ukraine: Nikolaev Port, Ilyichevsk Northern Direction (Morocco, Brazil, China, South Africa and others) 2590 км Russia: Ust-Luga Port 9

10 Logistics (Ports and Terminals) In its diversified logistics scheme Gazprom export LLC uses Russian shallow-water ports (Buzan, Ust-Donetsk, Temruk); Russian Sea port (Baltic Sea Ust-Lugs); Russian Sea port (Black Sea - Caucasus) with transshipment at the Roadstead; Ukrainian Sea ports (Black sea - Ilyichevsk, Nikolaev). In the maximum volumes of Russian Sulphur transshipped in each of the ports in different years reached: - Using rail transportation: Ilyichevsk (dwt.40thous.t) 0,86 mln.t Nikolaev (dwt.42thous.t) 0,73 mln.t Ust-Luga (dwt.70 thous.t) 0,49 mln.t - Using river barges: Ust-Donetsk (dwt.5 thous.t) 1,17 mln.t Buzan (dwt.5 thous.t) 1,91 mln.t Caucasus (dwt.75 thous.t) 2,44 mln.t 10

11 Logistics Due to a certain shortage of deep-water ports servicing Sulphur at the South of Russia (Black Sea), construction project for a multi-functional universal terminal has been developed at the Taman Peninsula (Tuzla) The Project, developed under Russian Government s supervision, anticipates investments of over 1.5 billion USD for the construction of a universal (coal, grain, fertilizers, sulphur, iron-ore concentrate, etc.) deep-water port: Cargo turnover - up to 66 mln.tons/year Sulphur transshipment up to 5 mln.tons/year Design Planning Construction

12 Geography of Deliveries Gazprom export has a diversified structure of the Sulphur distribution at the market Since 2008 Sulphur has been delivered to: Morocco, Tunisia, Brazil, Senegal, Lebanon, Lithuania, Belarus, Jordan, Israel, USA, Italy, China, Egypt, Ukraine, Spain, Finland and others 12

13 Regional Sulphur Distribution / Total Deliveries Key markets: Morocco, Tunisia, Brazil, Israel In the share of the Russian Sulphur at the key markets reached 20 to 90% depending on the region. 46% 58% 3% 9% 2% 4% 1% 4% 22% 2% 4% Morocco Tunisia Brazil Israel Lebanon Jordan USA Senegal Belorus 4% % 4% 5% 6% Morocco Tunisia Argentine USA Brazil Israel Lebanon Jordan Senegal Chile Finland China China (off-spec) 6% 11% around 4,8 mln.tons delivered to offshore consumers (5,0 mln.tons total export incl. CIS) 2011 about 3,5 mln.tons are to be exported offshore (3,1 mln.tons already shipped as of today) 2012 only 3,2 mln.tons for offshore export (~10% decrease) 13

14 Thanks for your kind attention!