Naturelgaz

Naturelgaz distributed CNG enough to capture close to 20% market share in the total non-piped gas market in Turkey.

Naturelgaz procures gas from private gas import and private gas distribution companies.

Naturelgaz, a 93.7% subsidiary of GIH, is Europe's largest CNG (Compressed Natural Gas) distributer in terms of mother station infrastructure and bulk sales volume in 2017. The company focuses on sales and distribution of bulk CNG to industrial and commercial customers – such as factories, power generators, hotels, asphalt plants – in addition to towns (households) not connected to natural gas pipeline because economic or geographic constraints.

TURKISH OFF-GRID NATURAL GAS MARKET

Today, the market (LNG + CNG) is based on bulk products supplied to industrial facilities and commercial consumers. These users – such as asphalt plants, food processors, power generation plants, hotels, shopping malls, among others – lack access to natural gas pipelines.

As of end-2017, the total market is 810 mcm, growing 10% annually, while CNG has a 24% share, at 194 mcm.

NATURELGAZ MARKETSHARE

In 2017, Naturelgaz distributed 148 mn Sm3 of CNG and captured 20% market share in the total non-piped gas market in Turkey. The company recorded a 26% market share in its filling plants' covered hinterlands.

NATURELGAZ'S INFRASTUCTURE

Stations in Operation:

Naturelgaz CNG infrastructure consists of 14 CNG plants, 50,000 CNG cylinders and 48 industrial scale compressors.

Mother Plants: Izmir, Bursa, Antalya, Çayırova, Konya, Kayseri, Kırıkkale, Osmaniye, Rize, Elazığ, Erzurum, Adapazarı

Auto CNG Stations: Istanbul, Bolu

In 2017, Naturelgaz developed the Elazığ and Erzurum plant projects as part of its growth strategy in eastern Turkey and started providing CNG service.

With this expansion, Naturelgaz has become Europe's largest CNG distribution company in terms of mother station infrastructure and bulk sales activity. All facilities and equipment established and used by the company conform to international standards and regulations.

SALES CHANNELS

PNG (Piped Natural Gas)

Naturelgaz procures gas from private gas import and private gas distribution companies. These enterprises are increasing in number and size with the liberalization of Turkey's natural gas wholesale market. After founding a Gas Trade Department in 2016, Naturelgaz started wholesale pipeline gas sales using its competitive sourcing advantage to meet peak summer demand.

Bulk CNG

Naturelgaz’s Bulk CNG sales rose 6.1% year-on-year, climbing to 148 mcm in 2017. Compared to LNG, CNG provides logistical advantages thanks to the natural gas pipeline network. In addition, CNG bears lower health and safety risks. The Naturelgaz Rize CNG filling plant was the inflection point for the CNG market and Naturelgaz. As a result, most public tenders since have included CNG in the tender specs as well as LNG. Customers have come to recognize Naturelgaz as the best and largest supplier of CNG.

City Gas

An EMRA-backed initiative – City Gas – declares that towns not currently connected to natural gas pipelines in Turkey, due to economic or geographic constraints, will be supplied by CNG via tenders.

In fourth quarter 2017, Naturelgaz won the first City Gas tender of 1 mcm in Turkey, to supply CNG to Bergama and Kınık in Izmir province.

Naturelgaz was also awarded the City Gas tender of 2 mcm in Palu and Kovancılar, Elazığ province in Turkey’s Eastern Region in addition to a tender of 0.55 mcm in Gördes, Manisa province in the Aegean Region.

The necessary infrastructure was established in the provinces with households connected to natural gas via the CNG system.

With City Gas, Turkey aims to expand the reach of natural gas to all its 81 cities via tender offerings. Naturelgaz plans to participate in such tenders to sustain its solid position in the sector.

Auto CNG

Naturelgaz’s expanding network is comprised of a mix of company-owned and -operated retail stations and dealer-owned and -operated stations. CNG is distributed directly from the mother stations under Naturelgaz ownership and via secondary stations (daughter stations) owned and operated by the company, or by a third party dealer. CNG is delivered from mother stations to daughter stations, dealers, or directly to end-users, via special purpose CNG storage units and trucks.

CNG provides significant cost savings of up to 20% in Turkey when compared to alternative fuels. Naturelgaz supports OEM CNG vehicle producers to bring more CNG vehicles to the market.

Naturelgaz is focused on the road transport sector to supplement existing bulk CNG sales. Compared to other energy sources, the use of CNG in road transportation provides two important advantages are cost savings and environmental sustainability.

The target customer segments in auto-CNG are:

  • Route-to-route logistics operations
  • Closed loop in-city passenger bus operations
  • Closed loop garbage truck operations

Growth Plan

As being Europe’s largest CNG distributor and best in class operation capability, Naturelgaz has a growth plan in 3 main areas ;

  1. Remote Towns : In Turkey, there are many zones that natural gas has not reached either because of geographical obstacles or infeasible economics. Supplying CNG into pipeline of remote towns in Turkey, in cooperation with local gas distributors, where there is no natural gas distribution infrastructure
  2. Carrying the experience and investments to the surrounding markets such as Africa where there are underdeveloped power infrastructures and strong growth potential.
  3. Developing Auto CNG projects in cooperation with OEM producers and conversion companies
VOG

Victoria Oil & Gas Plc is a fully-integrated onshore gas producer and distributor with operations located in the port city of Douala, Cameroon.

Naturelgaz has entered into an exclusive agreement to partner with Gaz du Cameroun S.A. (GDC). Gaz du Cameroun is a wholly-owned subsidiary of Victoria Oil & Gas Plc, the Cameroon based gas and condensate producer and distributor and listed on the AIM market of the London Stock Exchange under the ticker VOG.

The purpose of this long-term partnership will be to:

  • Design, build and operate compressed natural gas (“CNG”) infrastructure and solutions for customers who need mobile energy, initially in GDC’s home market of Cameroon with the intention of rolling this out into other African countries.
  • Market CNG products, including bulk CNG and gas-to-power to industry and businesses which require reliable off-grid / off-pipeline energy solutions, as well as Auto CNG for alternative mobility solutions.
  • Phase 1 agreed between the parties is a 2mmscf/d (21mscm/y) CNG plant and customer distribution project currently in design stage.

About Victoria Oil & Gas:

Victoria Oil & Gas Plc ("VOG" or "the Company") is a fully-integrated onshore gas producer and distributor with operations located in the port city of Douala, Cameroon. Through the Company's wholly-owned subsidiary, Gaz du Cameroun S.A. ("GDC"), VOG delivers gas via a 50km gas distribution pipeline network to a range of major industrial customers.

Since spudding its first wells in 2010, the Company has grown to become the dominant player in the Cameroon onshore gas market, primarily through the 57% owned Logbaba gas project. GDC is partnered on this project with RSM Production Company ("RSM"), and Société Nationale des Hydrocarbures ("SNH"), who have holdings of 38% and 5% respectively. Subject to government approval VOG will extend it acreage over the highly prospective Douala Basin with the addition of the Matanda license area.

Victoria Oil & Gas is listed on the AIM market of the London Stock Exchange under the ticker VOG.

PORTS

Cruise and commercial port operating activities

INDUSTRIAL

Clean and renewable energy production, compressed natural gas sales and distribution, energy efficiency and mining

REAL ESTATE

Developing and operating commercial real estate projects

FINANCE

Non-banking financial services such as brokerage, advisory and asset management

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