Increasing Globalization of the Gas Industry and What it all Means

1. 17th International Conference and Exhibition on Liquefied Natural Gas – LNG 17 Houston, 16th to 19th April 2013 Increasing Globalization of the Gas Industry and What it all Means LNG 17 Briefing for the Financial Community New York, NY January 15, 2013

2. Natural Gas – the Global Foundation Fuel “Not surprisingly, the worldwide energy industry has embraced natural gas as a ‘foundation’ fuel for the 21st century.” Soon to be published, “Energy for the 21st Century: Opportunities and Challenges for Liquefied Natural Gas (LNG)” by Susan L. Sakmar, University of Houston Law Center

3. Natural Gas – the Global Foundation Fuel Lithuania USA Japan Panama Canal East Africa/ Tanzania / Mozambique Australia Argentina

4. US Gas Demand Could Stack Up by 2020 * The lower range of electric and industrial demand growth is based on AEO 2012 reference case while the higher range is based on AEO 2012 High Carbon Dioxide Emission Fee case and High Economic Growth cases, respectively. This is an un-integrated, exogenous demand scenario for each sector. Including LNG exports, US gas consumption could grow between 6 and 15 Bcfd US Gas Consumption Scenarios – 2020* CAGR = 0.5% CAGR = 2.1% As shale grows to supply 50% of an 82+ Bcfd market, what will be the price impact of increasing shale costs and demand growth? MMtpa Christopher Goncalves, BRG - Berkeley Research Group. 'Drivers and Disruptions: The challenge of rebalancing global LNG markets', presented at the CWC World LNG Summit 2012

5. The Global Gas Market is Growing Dramatically Source: 2011 IGU LNG Study

6. 2012 LNG Trade Flows – 240 mtpa MarketOver 30% of flows were “flexible” (less than 4-year contract term) Atlantic Basin Pacific Basin Brent (85%), NBP (15%) Long Term: JCC Short Term: NBP/Other Hubs NBP & Other Hubs Markets LNG V.V. Rao, Galway Group LP. ‘East Africa and Southeast Asia: The Next Industry “Game Changers”?’, presented at the CWC World LNG Summit 2012 Pipeline

7. 2020 LNG Trade Flows – up to a 400 mtpa marketMany new supply side and market entrants Atlantic Basin Pacific Basin Brent (85%), NBP (15%) Long Term: JCC Short Term: NBP/Other Hubs NBP & Other Hubs Henry Hub/ NYMEX Markets LNG V.V. Rao, Galway Group LP. ‘East Africa and Southeast Asia: The Next Industry “Game Changers”?’, presented at the CWC World LNG Summit 2012 Pipeline New LNG Supplies

8. Strong Gas Demand Growth World gas demand (bcma) CAGR 2010 – 2020 China 11.2% Asia (excluding China) 3.3% Middle East & Africa 4.4% South America 2.9% Russia and Central Asia 0.8% 0.1% Europe 2.1% North America TOTAL 2.6% Source: IEA, BG Group Betsy Spomer, BG Group. 'The outlook for LNG: Are the dynamics changing?', presented at the CWC World LNG Summit 2012

9. LNG: Outpacing Gas Industry Growth International trade ~ 30% LNG Pipeline Domestic consumption Source: Actual – CEDIGAZ (2011), Outlook – Wood Mackenzie (2012) Betsy Spomer, BG Group. 'The outlook for LNG: Are the dynamics changing?', presented at the CWC World LNG Summit 2012

10. The LNG Supply Challenge LNG trade forecast Supply- demand gap 175 mtpa Australia Supply: existing and under construction Qatar Source: BG Group interpretation of Wood Mackenzie data (Aug 2012) Betsy Spomer, BG Group. 'The outlook for LNG: Are the dynamics changing?', presented at the CWC World LNG Summit 2012

11. What is LNG 17? 1 In 2013 LNG 17 will be the world’s largest gas industry event – 5,000 attendees from 80 countries 2 Alternates every three years between LNG producing and consuming countries 3 World’s largest conference on LNG 4 Literally hundreds of publicly traded companies from around the world will be speaking, exhibiting and attending

12. LNG 17 – the exhibition

13. 17th International Conference and Exhibition on Liquefied Natural Gas – LNG 17 Houston, 16th to 19th April 2013 Increasing Globalization of the Gas Industry and What it all Means LNG 17 Briefing for the Financial Community New York, NY January 15, 2013