Chapter 717 Pacific Energy's Power Plant

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"When Scottish Power is included, Pacific Energy will have $171 billion in total assets, a 7.2 percentage point decrease in the debt ratio and a 1.2 percentage point increase in net profit to 12.76%. ”

At the same time, the number of power plants owned by Pacific Energy will increase to 173, of which the number of super power plants above 1,000 megawatts will increase to 29, and the installed capacity will increase to 72,840 megawatts, and the proportion of new energy, including wind power and solar energy, will increase by 4 percentage points to 9.4%, the installed capacity of nuclear power will increase by 5.7 percentage points, accounting for 14.2%, and the installed capacity of thermal power will increase by 7.8 percentage points, accounting for 23.94% , the installed capacity of natural gas power generation increased by 11.4 percentage points, accounting for 52.46%. ”

"In terms of electricity distribution and retail, we will have 28,700 commercial users, as well as more than 40.28 million individual users. ”

After a quick talk about Pacific Energy's assets, revenue, and business scale after the acquisition of Scottish Power, Jonathan Weir continued to report on the company's financial and operational performance in the third quarter.

"At present, we have 5 power plants and 12 power plants in Huaxia, with an installed capacity of more than 1,000 megawatts, all of which are natural gas power plants, with a total installed capacity of 28,000 megawatts. The attributable installed capacity is 15,800 MW. ”

Most of the power plants invested by Pacific Energy in China are joint ventures, accounting for about 50% of the shares.

"In India and Southeast Asia, there are 3 new power plants and 11 expanded power plants, with an installed capacity of 300~500 megawatts, 53% of natural gas power plants, 41% of coal-fired power plants, and 6% of new energy plants. The total installed capacity is 19,000 MW, and the attributable installed capacity is 11,530 MW. ”

"In the Middle East and Africa, there are 6 new power plants and 14 expanded power plants, with an installed capacity of 100~300 megawatts, 23% of which are natural gas power plants and 77% are coal-fired power plants. The total installed capacity is 9,580 MW, and the attributable installed capacity is 6,598 MW. ”

"In North America, there are 4 new power plants and 7 expanded power plants, with an installed capacity of 300~1000 megawatts, 73% of which are natural gas power plants, 16.5% of nuclear power plants, and 10.5% of new energy plants. The total installed capacity is 16,000 megawatts, all of which are self-built. ”

"In South America, there are 3 new power plants and 13 expanded power plants, with an installed capacity of 300~800 megawatts, 52% of which are natural gas power plants, 27% of coal-fired power plants, 13.3% of nuclear power, and 17.2% of new energy. The total installed capacity is 11,000 MW, and the attributable installed capacity is 93.6 million MW. ”

"In Europe, there are 3 new power plants and 9 expanded power plants, with an installed capacity of 800~1200 megawatts, natural gas power plants account for 54.2%, nuclear power plants 23.4%, and new energy 22.4%. The total installed capacity is 14,500 MW, and the attributable installed capacity is 9,340 MW. ”

"Up to now, Pacific Energy has an installed capacity of 98,000 megawatts under construction, of which 6.89 megawatts of equity installed capacity, with a total investment of US$143.2 billion, a net investment of US$21.48 billion, and an average annual net investment of US$4.296 billion. It is expected to add an average of 13,900 MW of installed capacity per year. ”

Pacific Energy invests in new and expanded power plants every year, but it is more aggressive and larger than other power investors. In the next five years, its own power generation capacity will double. In addition, the future emerging markets of China and Southeast Asia account for half of Pacific Energy's investment in power projects.

“… All of the above projects are undertaken by Taiping Energy's energy engineering department. According to the agreement, 74.3% of the project will be operated by us after completion. ”

“… In addition, we acquired 27 electricity distribution and retail facilities in 14 countries, including Obi, the second largest electricity distributor in Chile, and São Paulo, the third largest electricity distributor in Brazil. ”

Each country's electricity operating environment and policies are different. Similar to Huaxia's power transmission field, the State Grid is the absolute boss, and the electricity produced by the power plant can only be sold to him. State-owned companies and private enterprises are allowed to operate only in the areas of power generation, distribution and retail.

However, in some countries, such as Brazil and Chile in South America, and the United Kingdom in Europe, the electricity market is completely liberalized, and power generation, transmission, and distribution can be vertically integrated. Of course, there are companies that only get involved in one part of the story. Similar to the North West Power Company acquired by Li Ka-shing, it is only a pure distribution network operator and does not involve power generation and transmission.

Pacific Energy is investing heavily in power generation, and of course it is important to find sufficient markets for this power. Therefore, acquisitions in the transmission and distribution links are inevitable.

“… In the power sector, in the third quarter of 2004, Pacific Energy generated a total of $7.872 billion in operating income and $1.3 billion in near profit. ”

"In the natural gas sector, we currently operate 25,000 miles of gas pipeline trunks in North America and 1,820 miles of gas pipeline trunks in South America. It has 12,000 industrial natural gas users and 12.8 million individual users. ”

"In addition, we have invested and owned a 33.4% interest in the 4,539-mile Brazilian coastal gas pipeline, which is currently under construction. From San Cristobal in Colombia to Guyana City in Venezuela, a 430-mile gas pipeline with an investment of $1.4 billion has signed a cooperation agreement and is expected to officially start construction on October 3 this year. ”

“… Huaxia has agreed to invest US$4 billion in the second phase of the West-East Gas Pipeline, in which Pacific Energy will have a 21.4% stake, but there will be no management involved. ”

"It took nearly a year to finally take it down!" Guo Shouyun not only sighed.

"The boss solved the economic turmoil that could be caused by the collapse of Delong Group, and the Chinese government reciprocated the favor and gave us the opportunity to join it, and we also got a significant 21.4% stake. Jonathan Weil laughed.

"That's why it's said that 'if you lose your horse, you don't know if it's a blessing'!"

Seeing the questioning look on Jonathan's face, knowing that he didn't understand Huaxia's idiom, and he didn't mean to explain, he waved his hand, "Okay, you go on!"

"At the moment, we are in talks with the Indian government to build a 160-kilometre gas pipeline from Mumbai to Pune. ”

"India's political risks are too high, and their economic development is too low, can we make a profit?" Guo Shouyun worried.

"It is precisely because of the high political stakes in India that we intend to work with Indian oil and gas companies, with both parties holding a 50% stake. In addition, from the Dabor project to the present, we have accumulated enough contacts in the political circles of India, especially in Maharashtra, for more than ten years. Able to ensure that the project can be passed. ”

“… As for profitability, Pune is the second largest city in Maharashtra with a population of 1.2 million. Even if only 1 in 10 can afford natural gas, there are 120,000, plus industrial users. The average annual demand is 15 million cubic meters. In addition, the whole state of Malashtra has a population of 120 million people. Even bigger than the demand for natural gas in the urban areas is the natural gas distribution and retail market in the surrounding towns. ”

“… According to our statistics, in 2003, the gas demand for the whole of Maharashtra was 547 million cubic meters. If this pipeline is completed, retailers across central and eastern Maharashtra will have access to gas from us, and we will open up the gas distribution and retail market in Maharashtra and India as a whole. ”

Guo Shouyun nodded, and it could be seen that Jonathan Weil had thought about this matter very thoughtfully, and thought of all aspects.

"What about the specifications of the piping design?"

"The annual gas transmission capacity is 5 billion cubic meters. ”

"Looks like you're planning for the long term. Guo Shouyun said with a smile.

"It's also influenced by you. After a pause, "If the pipeline from Mumbai to Pune works well and we have gained some experience, we are ready to extend from Pune to the more economically developed south of India." Cities such as Sholapur, Hyderabad, Bangalore, Nagpur and more are worth exploring. ”

"It seems that you are very interested in the Indian market!" Guo Shouyun said.

After Jonathan nodded, his tone was a little excited: "India has had an average GDP growth rate of more than 5% for five consecutive years, although it is not as good as China, but this is also a supermarket with a population of nearly 1.2 billion. The most important thing is that this is still a virgin land that few large foreign companies have set foot in, and it is worth our investment. ”

"Jonathan, I have no objection to your optimism about the Indian market. You intend to invest in the Mumbai to Pune gas pipeline, and I agree. But you know that no one is stupid, EDF, EDITALIA, GE, they all have gas business, why don't they dare to invest heavily in the Indian market? Do they really not see the potential? I think even if I don't say it, you know the answer. ”

Jonathan Weil nodded, having done enough research when he was planning to invest in the Mumbai-Pune gas pipeline, he was naturally well aware of the shortcomings of India's public utilities.

"Boss, I know that there are many problems in the Indian market, such as political corruption~corruption, imperfect legal system, serious poverty, backward infrastructure, difficulty in land acquisition, and strong local power. But developing international projects, especially in third world countries, is not going to be easy. India is just a little more difficult. However, with the experience and lessons learned from the Dabor project, I believe that we can solve these problems one by one and accumulate more experience for the development of the Indian market. ”

"I appreciate that you can have such thoughts. However, I would also like to stress that the construction of the subsequent pipeline shall not be carried out until the Mumbai~Pune gas pipeline project is confirmed to be profitable. For the development of the Indian market, we must step by step and never rush forward. The mistakes of the Dabor project must not be repeated. ”

"Yes!"

In fact, Guo Shouyun's confession is also Jonathan Weil's own thoughts. After careful investigation, he is more aware than Guo Shouyun of the difficulties in the development of public utilities in the Indian market. That's why he is only willing to invest in the 160-kilometer gas pipeline from Mumbai to Pune.

You know, Pacific Energy's pipelines in Colombia are longer than that.

。 m.