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7 th Doha Natural Gas Conference and Exhibition – 9-12 March 2009

The Global Integrated Model: a Key-Player for Value Creation Jean-Luc COLONNA Senior Vice President, LNG. 50 Years Experience in the LNG Industry. Beauvais (experimental vessel) - 1958. Gaz de France energY - 2006. 7 th Doha Natural Gas Conference and Exhibition – 9-12 March 2009.

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7 th Doha Natural Gas Conference and Exhibition – 9-12 March 2009

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  1. The Global Integrated Model:a Key-Player for Value CreationJean-Luc COLONNASenior Vice President, LNG 50 Years Experience inthe LNG Industry Beauvais (experimental vessel) - 1958 Gaz de France energY - 2006 7th Doha Natural Gas Conference and Exhibition – 9-12 March 2009

  2. Presence and partnerships in Qatar • GDF SUEZ has been involved in Qatar through several long-term activities and major projects including significant investments: • 2005: Doha West sewage water treatment plant • 2006: Doha Lusail sewage transfer and treatment system • 2008: Representative Office in Doha; MoU signed withQatar Petroleum International (QPI) • 2008: Ras Laffan C project [US$ 3,700 M investment] • Biggest independent water and power project (IWPP)of the country: production capacity of 2,730 MW (powerproduction) and 286,000 m3/day (water desalination) • Partnership with Mitsui, Yonden, Chubu, Qatar Petroleumand Qatar Electricity & Water Company • 2008: Marafeq Qatar • Multi Utility Company in the field of energy services (inc. districtcooling), water (inc. desalination), waste water, power transmissionand distribution, gas supply (LPG), solid waste, etc. • Partnership with Qatari Diar and Barwa

  3. Hard times have arisen for global economy… • Financial crisis started in end 2007 and has worsen since then into a global economic crisis • Developed countries will experience recession in 2009 whereas developing countries should see a reduction of GDP growth rate • Industrial production dropped steeply by the end of 2008

  4. … troubled times for gas demand • Demand reduction • Had already been underway since 2006: high energy prices have made industry keenly aware of necessity of energy efficiency • Widespread recession reduces current gas demand in the industrial and power sectors and even to a small extent in the domestic sector • Decline of industrial production casts doubt on the rate of future gas demand growth • Duration & depth of crisis and pace of recovery are key-issues • Security of supply • Russian supply transiting via Ukraine totally stopped for two weeks, with major impact in South-Eastern Europe • Negative impact on gas supply reputation – questioning if gas is a reliable source of energy • Greater consideration given to fuel diversity (coal, nuclear) • Energy Efficiency and Carbon Policies • EU and US decisions to strengthen energy efficiency and carbon policies could favour nuclear power, renewables and clean coal, and reduce gas demand

  5. Where will flexible LNG flow? • Compared with the last 2 years, Asia will not be a destination for flexible LNG • Asia will not be able to absorb all LNG coming on-stream in 2009-2012 (+70 mtpa)… • … and should not need significant spot/short-term supply • Flexible LNG volumes should be more than sufficient to satisfy European needs • LNG terminal capacity is available to receive flexible LNG… • … but pipeline Take or Pay obligations limit the demand for flexible LNG in particular during summer time • and European liquid markets are not very deep • Therefore the remaining volumes will probably need to go to the US… • Deep and liquid markets • Large idle LNG regasification capacities • … but at what price? • Development of cheap unconventional gas means US does not need to import LNG • US the 'last resort' market for LNG…

  6. Europe, the "new" LT destination for LNG? • Reliable gas market offering visibility, based on LT relationships between counterparts • Mature low growth gas market… but declining indigenous gas production • Requiring increasing gas imports • Expecting the strongest world wide medium term growth in LNG imports • Europe already has LNG infrastructures that can handle more LNG on the short/mid term • Spare capacity in existing terminals • New terminals coming on stream 2009 • Expansion of existing terminals • Renewed interest of the European Commissionand of several European countries • Diversity and security of supply = major issues • Intending to promote LNG projects • Fast-track opportunities and solutions exist • Floating terminals, expansion of existing infrastructures

  7. GDF SUEZ's main gas consumption / markets GDF SUEZ's main gas consumption / markets with access to regasification capacities GDF SUEZ – Bringing confidence to the LNG business • Strong positions all along the LNG value chain • Worldwide Group's gas supply ~100 bcm/year • Highly diversified and stable customer base (geography, type of markets, indexation) • Long-term contracts with producers • Financial strength and creditworthiness • Technical and commercial expertise through • Development of some of the core technologieson which the LNG industry is based andcontinued commitment to R&D • Group investment and presence all alongthe LNG value chain • Development and operation of Group's assets • Design & Engineering consultancy services to the LNG industry • Ad hoc partnerships

  8. REDISCOVERING ENERGY

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