Download Introductory Slides - The Linde Group

Linde Capital Market Day 2012
Breakout Energy/Environment
Prof. Dr A. Belloni
Dr A. Opfermann
12 September 2012, Munich

Disclaimer
This presentation contains forward-looking statements about Linde AG (“Linde”) and their respective
subsidiaries and businesses. These include, without limitation, those concerning the strategy of an integrated
group, future growth potential of markets and products, profitability in specific areas, the future product
portfolio, development of and competition in economies and markets of the group.
These forward looking statements involve known and unknown risks, uncertainties and other factors, many of
which are outside of Linde’s control, are difficult to predict and may cause actual results to differ significantly
from any future results expressed or implied in the forward-looking statements on this presentation.
While Linde believes that the assumptions made and the expectations reflected on this presentation are
reasonable, no assurance can be given that such assumptions or expectations will prove to have been correct
and no guarantee of whatsoever nature is assumed in this respect. The uncertainties include, inter alia, the risk
of a change in general economic conditions and government and regulatory actions. These known, unknown and
uncertain factors are not exhaustive, and other factors, whether known, unknown or unpredictable, could cause
the group’s actual results or ratings to differ materially from those assumed hereinafter. Linde undertakes no
obligation to update or revise the forward-looking statements on this presentation whether as a result of new
information, future events or otherwise.
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Mega-trend Energy/Environment
The world is changing
1 Fossil fuels increasing
2
80%
Mtoe
18
16
14
12
10
8
6
4
2
0
2009
Other renewables
Biomass & waste
Source: IEA New Policies Scenario
3 Oilfield depletion
4
Source: WEO- IEA
2020
Hydro
Nuclear
Natural gas
Oil
Coal
2035
74%
10
NG price in US depressed
8
6
4
2
0
1990 1995 2000 2005 2010 2015 2020 2025 2030
Source: EIA
CO 2 certificate prices rising
0
0
$9.7/mmbtu
2005 avg
0
2011YE
0
Economic crisis plus shale
gas development
10
China
18
15
10
2020
US, Canada, Japan
30 30
Korea
Source: IEA New Policies Scenario, 2010 $ basis
28
23
Projections
US natural gas spot price, 2009 $ per mBtu
36
2030
40 40
Australia, New Zealand
35
30
EU
45 45 45
2035
AEO2009
AEO2010
AEO2011
Price projections decreasing
each year with new discoveries
$2.5/mmbtu
2012 avg
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Mega-trend Energy/Environment
Support for the Energy/Environment agenda
1
2
3
4
Drivers
Fossil fuels
increasing
NG price in US
depressed
Oilfield depletion
CO 2 certificate
prices rising
Comments
— Energy demand growth at 1.3% p.a. until 2035
— Fossil fuel demand growth at 1.0% p.a.
— NG price in US at 2.5$ mbtu (further falling)
— Long term projection at 5-6$ mbtu
— Oil price projection long-term > 100$/bbl
— National budgets on oil price > 80$/bbl
— Marginal cost of production trending upwards
— Long term projection at 30-45 $/tCO2
— High political uncertainty
Support for the E/E agenda
EOR CCS LNG H2
↗
↗
↗
↗
↗
→
→
↗
↗
↗
↗
↗
→
↗
↗
↗
4

Mega-trend Energy/Environment
LNG: strong market drivers for all application segment
Marine
Heavy Trucks
Industry &
distributed
power
1 International Maritime Organization
² Emission Control Area
— IMO 1 legislation expected to have major impact in mid term perspective:
ECA² in NW Europe from 2015 and as well as in US coastal waters (200 nm)
— Current spread between oil & NG price in Europe and North America allowing
LNG to compete even versus Heavy Fuel Oils
— Lack of infrastructure major hurdle from customer perspective
— LNG cost competitive in North America, China and some European markets (taxation)
— New engine technology to come down in cost to drive penetration
— Future emission regulation on CO2 and noise (rather than SOx, NOx etc.)
— Lack or low reliability of grid infrastructure basis for LNG as substitute for industrial
process heating / power generation
— Cost competitive versus higher oil distillates, e.g. LPG, gasoil
— Ideal for base load from stranded sources
5

Mega-trend Energy/Environment
GTL: a clean, natural gas-based designer fuel
Description
— Production of cleaner-burning transport fuels and
lubricants from natural gas
— Major step towards meeting the world’s growing
demand for cleaner energy
Reference project
— World’s largest ASU site for designer fuels from
Shell GTL, Pearl, Qatar
— Eight air separation units produce the massive
volumes of oxygen required by the Shell plant
(around 860,000 cubic metres of oxygen per hour)
— Single largest air separator contract ever placed
Scope
— Conceptual design, equipment manufacturing
and commissioning
— Securing oxygen stream required for conversion
of natural gas into liquid fuels
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