www.galwaygroup.com

Introduction to Galway Group Power Offering2016

Commercial Strategy

FinancialTechnical

Galway Group Perspective

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Our ExperienceGalway expertise is based on over four decades of industry experience in support of global Fortune 500 companies, small and medium-sized enterprises and governments.

Our OfficesWith offices in Houston, Singapore and London, Galway supports a growing base of international clients in North America, Latin America, Asia, the Middle East and Africa.

Our Clients Include Utility companies and power generators Upstream oil and gas companies Governments and NOCs Trading companies LNG terminal development companies

Galway GroupEnergy advisory firm that offers commercial advisory, transactional, analytical and project structuring support to the energy industry.

Galway Group

Singapore

London

Houston

Galway’s Suite of Advisory Offering

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Galway’s Integrated Offerings Across the Energy Value Chain

Business Strategy

LNG/Natural

Gas

Fuel Procureme

ntPower

Prepare a business strategy for our client through an interactive work shop approach, based on the following inputs:

• Corporate Strategy• Commercial Strategy• Competitor Analysis • Client constraints and

preferences for entry strategy

• Market fundamentals

• Opportunity screening countries/plays

• Shortlist of potential countries/plays

• Economic valuation• Risk assessment• Reservoir productivity

modelling• Project financing

• LNG value chain project implementation

• Project due diligence• Market study• Transportation • Project financing• Contractual support

(PSC/GSA/JOA/TSA)

• Integrated fuel/[power station project implementation

• Inter fuel economics, fuel switching

• Contractual support (FPA, PPA)

• Market study• Power station/asset

valuation• Dispatch modelling• Portfolio/Asset

optimisation• Clean Energy• Market, regulatory risk

assessment• Project due diligence• Project financing• Tariff benchmarking

Consider Galway as Your Shadow Team in Implementing Power Strategy

Commercial Strategy

FinancialTechnical

Galway’s Power Advisory Services

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Market Study

Price and dispatch forecasting

Contract negotiation, support

Fuel procurement

Fuel substitution

Bid documents

Strategy formulation

Opportunity definition

Market study

Market entry

Portfolio, asset optimisation

Concept framing

Opportunity evaluation

Asset valuation

Due diligence

Dispatch modelling

Financial modelling

Project implementation

Integrated G&P projects

Galway Group Power Experts

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Graham has worked 25 years in the global energy sector, he joined Galway Group in October 2015. Prior to joining Galway Group Graham worked for 15 years at Wood Mackenzie, he moved to Singapore in 2007 to lead the Wood Mackenzie’s Asia gas and power research team. For his first ten years in industry Graham worked in the competitive UK power market for a regional utility (Seeboard); and the international business development team of a major power generating company (National Power).

Graham Tyler

Irfan Choudhry

Irfan has over 16 years of energy sector experience, he has led several consulting assignments which focused on power market analysis, power modelling and impact of carbon related issues on power markets. Prior to joining Galway, he spent 7 years with Wood Mackenzie as part of the gas and power consulting practice. Before Wood Mackenzie, Irfan spent 9 years in the financial sector with a focus on the energy companies. This included working with CRISIL where he was responsible for performing credit ratings analysis for portfolio of India’s leading companies in the power sector and providing advice in the areas of power sector regulation, utility financial turnaround and policy initiatives for market competition. He has also worked with PFC where he was responsible for financial & technical appraisal of private sector power projects.

Kurt brings to Galway 30 years of global energy sector experience. Prior to joining Galway Kurt worked in Chevron, in Houston and London, and for 6 years as GM of Chevron Tokyo. His energy career started in Chicago with NGPL managing marketing & business development teams that developed power, sold gas transportation & storage services and pipeline and Natural Gas Vehicle opportunities. Later, he moved to Manila to lead gas pipeline & power development activities throughout SE Asia, South Asia and the Middle East. In 2003, he joined El Paso Global Power’s Asian power plant portfolio where he manged implementation of Project Metrics Program with a focus on monitoring and managing the operational & financial performance on each of El Paso’s 17 Asian power projects.Kurt Lindahl

Martin Paliga

Lennart Nil Luten

Lennart brings to Galway 7 years of diverse Gas & Power experience gained through roles in notably RWE and Vopak LNG, respectively in North-West Europe and South-East Asia. He has worked on the appraisal, development, financing and risk and valuation assessment of multiple large power projects. Skills include economic valuation and business case management, term sheet and contract drafting, commercial deal structuring, and market and regulatory analysis.

Martin has over 30 years of experience in the energy business, of which more than thirteen is power-focused. Martin worked with UK’s National Power plc for 8 years handling various roles - Project manager for the development of new power station projects and cogeneration facilities, responsibilities included the development of PPAs and commercial/economic analysis; Fuel supply officer responsible for the procurement of coal for UK power stations and the assessment of gas, oil and coal supplies to international developments; Power station developer responsible for securing planning, construction and operational permits for new power station developments.

Galway Group Representative Clients

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Apex●CAES

CASE STUDIES

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Galway Recent Power Project ExperienceExample A: Integrated LNG Terminal and Greenfield Power Projects

Performed due diligence on integrated floating LNG import terminal and a CCGT power plant in Chile. This included the evaluation of the power market condition, technical assessment of the floating LNG terminal component of the project, the LNG supply acquisition strategy and viability of the project.

Client Confidential- German Multinational Conglomerate

Advised privately held power project developer on the development of a floating LNG terminal and supply acquisition, to provide natural gas for a greenfield 1200 MW CCGT power plant based in Chile.

Chile Client Confidential - Chilean Private Power Developer

Client: Confidential – A German multinational conglomerate

Location: Chile

Project Description: Performed due diligence on integrated floating LNG import terminal and a CCGT power plant in Chile. The study included: Evaluation of power market condition

• Assessed competitiveness of a CCGT fuelled with imported LNG in a hydro dominated power market, the potential impact on LNG requirement profile and impact on LNG contracting requirements

Evaluated the viability of the power project• Assessed Chile’s openness and/or experience with IPP project

developers

• Overview of other successfully developed IPP projects

• High level assessment of interconnectivity of the proposed power plant to the transmission grid

• Overview of potential issues that might be encountered with project financing, permitting, and PPA’s

Technical assessment of the floating LNG terminal component of the project

• High level assessment of the suitability of the proposed site for either FSRU or land based terminal

• Overview of using an FSRU versus land based terminal for the proposed location

Advised on LNG supply acquisition strategy

Example A: Integrated LNG Terminal and Greenfield Power Projects

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Case Study

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Galway Recent Power Project ExperienceExample B: Fuel Switch to Gas/LNG in Power Plants

CaribbeanHawaii

South East Asia

US Virgin Islands Water and Power Authority (WAPA)

Performed a techno-commercial feasibility study for WAPA (US Virgin Islands government agency) to convert two of its power plants on the islands of St. Thomas and St. Croix to run on natural gas. The services included a technical evaluation of small-scale infrastructure options, LNG supply availability and pricing, and feasibility of using Compressed Natural Gas (CNG).

Client Confidential - International Oil & Gas Terminal Company

Conducted a pre-feasibility study to identify the potential power candidates for fuel oil switch to gas/LNG in South East Asia, the study included detail analysis of economics of LNG vs Diesel/FO.

Merrill Lynch

Conducted an analysis of power market to identify the opportunities in the Caribbean and Central American markets to support substituting LNG for fuel oil in power generation. This included technical and commercial evaluation of LNG import infrastructure options, and pricing assessment based on alternate competing markets in the Atlantic Basin.

Evaluated the techno-commercial feasibility to supply the Caribbean island with gas via CNG or LNG for fuel oil substitution for power generation. Also, advised on alternative commercial structures available for the facilities and gas supply.

Government of Curacao

Performed a feasibility study to substitute fuel oil to gas in HECO’s power plants in the various islands of Hawaii. This included technical evaluation of the LNG import facilities at various locations, identifying potential supply sources of LNG and likely pricing expectations from such supplies.

Hawaiian Electric Company (HECO)

Fuel Oil

Panama

Client Confidential - A Thermal Power Generation Company

The client intended to convert an existing power plant to burn propane as its primary fuel instead of diesel. To accomplish this, Galway supported the project as a commercial advisor by assisting and supporting the client and its legal advisors in the review and negotiations of the contract(s) to develop and operate the propane import and storage terminal and secure a supply of propane.

Evaluated the techno-commercial feasibility of importing LNG to substitute existing fuel oil fired and greenfield power projects in the country .

Mauritius Central Energy Board

Mauritius

Example B: Fuel Oil Substitution to Gas/LNG in Power Plants

Client: Confidential – International Oil & Gas Terminal Company

Location: South East Asia

Project Description: Conducted a pre-feasibility to identify the potential power candidates for fuel oil switch to gas/LNG in South East Asia. The study included: Identification of power plants using diesel or other liquid fuel and

having a potential for conversion to gas/LNG. Conducted detailed research, site visits, interviews with

equipment manufacturers (OEMs) and power generators, which were made to collect specific insights including:• Dynamics of the local power players using liquid fuels in power plants

• Load profiles of those power plants

• Regulatory framework

Performed detailed value chain economics of switching from diesel/fuel oil to gas in power plants including:• Analysis on the desirability of the end customer to be converted to LNG

with regards to costs incurred by the customer for the conversion facility or infrastructure within the plant

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Case Study

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Galway Recent Power Project ExperienceExample C: FSRU to Deliver Gas to Existing Power Plants

Caribbean Bahrain

Uruguay

UTE & ANCAP

Assisted Uruguay Government entities in developing and structuring an FSRU to supply gas for power generation. The services included: a) transactional advice on supply acquisition strategy, evaluation of issues around integrating FSRU operational capabilities with fluctuating market demand; b) scenario modelling on demand fluctuations in hydro-dominated power sector on the supply acquisition strategy and impacts of terminal availability from metocean conditions; c) commercial advisory support with managing the tendering processes for service providers, and later for LNG supply acquisition; and d) strategic advisory on the financial structure and risk assessments related to operations and commercial contracts.

PetroSA

Advising South Africa’s national oil company, PetroSA, on the development of FSRU to supply gas to existing power plants, new greenfield power plants, industrial users, and PetroSA’s GTL refinery. Galway’s involvement has included: a) techno-commercial advice, b) project and commercial structuring advice, c) strategic partner selection and contracting advice and support, d) support of gas sales agreement (GSA) negotiations with off-takers, e) LNG procurement advice and SPA negotiations advice and support, and d) demand aggregator business model development and advice.

South Africa

Nogaholding

Advising nogaholding as the project manager for the development of an FSRU to supply gas for power generation in Bahrain. Galway’s role includes the management, supervision and coordination of all technical, commercial and financial aspects of the project.

Puerto Rico Electric Power Authority (PREPA) and Government Development Bank of Puerto Rico

Provided advisory services on the development of an floating LNG terminal project near PREPA’s Aguirre power plant and the acquisition of additional LNG supplies for PREPA’s power plants and industrial users in Puerto Rico. This included a) advice on LNG supply acquisition, b) assistance in the development of an RFP process to select an FSRU provider and terminal project developer, c) advisory on selection of gas procurement process, d) preparation of complete RFP package, term sheets, and proposed SPA, e) assistance to PREPA and GDB in all negotiations activities, f) advisory and support in developing a financing plan.

Example C: FSRU to Deliver Gas to Existing Power Plants

Client: Puerto Rico Electric Power Authority (PREPA) and Government Development Bank of Puerto Rico

PREPA is the government-owned electric power utility in Puerto Rico. The Government Development Bank of Puerto Rico is a government agency tasked with overseeing and arranging financings for the other government agencies.

Location: Puerto Rico

Project Description: Galway has been providing advisory services on the development of a floating LNG terminal project near PREPA’s Aguirre power plant on the southern coast of Puerto Rico, and the acquisition of additional LNG supplies for PREPA’s power plants and industrial users in Puerto Rico. Galway’s services include: Advisory to GDB on LNG supply acquisition Assistance in the development of an RFP process to select an FSRU

provider and terminal project developer Advisory on selection of gas procurement process Preparation of complete RFP package, term sheets, and proposed

SPA Assistance to PREPA and GDB in all negotiations activities Advisory and support in developing a financing plan

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Case Study

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Galway Recent Power Project ExperienceExample D: Contractual Support Projects

Cutuco LNG Terminal

SCB International

Provided an evaluation and analysis of various LNG SPA proposals for LNG supply into Chile for power generation.

Edelnor S.A.

Advised and supported Cutuco on LNG supply acquisition for a greenfield power plant. This included advising on supply sources and likely pricing, contacted suppliers, prepared term sheets and instituted preliminary discussions with potential suppliers. Italy

Chile

Assessed LNG price and LNG sourcing for a gas-to-power project in San Marino, Italy. Galway determined the feasibility of importing LNG into the region from commercial and economic perspectives.

El Salvador

Abu Dhabi Water and Electricity Company (ADWEC)

Galway has been advising ADWEC on the development of the LNG regasification facility and procurement strategy. This included: defining potential Scenarios for the LNG import terminal, identifying a reasonable rate of return for the Terminal, reviewing of LNG terminal cost estimates, identifying the reasonable share of terminal costs to be paid by ADWEC, developing an appropriate LNG terminal commercial structure, developing a term sheet relating to terminal usage agreement (TUA), recommendation of the most appropriate LNG procurement model, developing a term sheet relating to gas sales agreement (GSA)

Abu Dhabi

Sales Purchase Agreement

Example D: Contractual Support Projects

Client: Abu Dhabi Water and Electricity Company (ADWEC)

ADWEC acts as a guarantor for security of supply of water and electricity in the emirate of Abu Dhabi. In this context, ADWEC is seeking to secure additional gas imports through Emirates LNG to fuel gas-fired power plants in Fujairah, which in turn provide electricity to Abu Dhabi.

Location: Abu Dhabi

Project Description: Galway has been advising ADWEC on being the sole offtaker of the development of the LNG regasification facility and procurement strategy. These were done in two phases: Terminal Related Advisory and Term sheet for TUA

• Define potential Scenarios for the LNG Import Terminal considering the uncertain and seasonal demand for gas from the power sector

• Identify a Reasonable Rate of Return for the Terminal that ADWEC should pay considering a global benchmarking and bottom-up analaysis

• Review of LNG Terminal Cost Estimates

• Develop a Term sheet relating to Terminal Usage Agreement (TUA)

LNG Procurement Strategy • Recommend to ADWEC the most appropriate LNG procurement model

• Recommend an LNG procurement & contracting strategy that is most appropriate for the likely uncertain gas demand forecasts for the power sector

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Case Study

Galway provided a detailed analysis of potential customers for client’s biomass product in various region. Carried out a comprehensive economic analysis of the LNG delivery infrastructure to help the client make a comparison of the delivery costs of re-gasified LNG versus bio-mass pellets to customers. Analysed and developed a model depicting LNG supply from various global sources, different shipping options as well as various LNG import infrastructure to arrive at a re-gasification tariff. This was then used to arrive at a final plant gate gas price and compare it with delivered prices of the bio-fuel pellets. Also, identified possible fuel switching (coal/liquid fuels to alternative fuel) opportunities.

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Galway Recent Power Project ExperienceExample E: Non Gas based Power Projects

Houston

New Zealand

Client Confidential - North American Bio-mass pellet fuel manufacturer

TUKIA Group

Tukia and its member investors planned to invest in and develop multiple domestic geothermal projects in New Zealand geothermal. In order to facilitate the development of these projects Galway provided a detailed economic feasibility analysis and risk analysis associated with financial investments in these geothermal projects.

Example E: Non Gas based Power Projects

Client: Confidential – North American Bio-mass pellet fuel manufacturer

Location: Houston

Project Description: Client speculated that there are many situations in which its black pellet (biomass fuel) technology can provide overall lower burner tip fuel costs than re-gasified LNG. To this end, client engaged Galway: To carry out an economic evaluation of LNG delivery infrastructure

so that client can better understand the competition from LNG and thereby better define its marketing plan and position its development strategy vs. LNG.

Identified and provided a first level validation of potential customers for clients biomass product in various regions including Asia, Latin America and the Caribbean. • Galway listed existing power plants running on fuel oil which cannot

reasonably access LNG or pipeline gas.

• The list was based on 3rd party research and then supplemented by the insights/experience of staff who have worked in the region.

• Identified projects which are at the concept stage which could potentially be induced to use Biomass in place of an alternate fuel (i.e. coal or fuel oil).

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Case Study

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Galway Recent Power Project ExperienceExample F: LNG Procurement for Power

JapanGalway Provided estimates of full-cycle costs of LNG delivered to Japan from various LNG export projects in the major existing and prospective supply regions globally. Provided detailed analysis on availability of global LNG supplies and project competitiveness. Analysis also included estimated support from potential NGL sales, where applicable, on effective costs of LNG supply from the projects.

J-Power

Example F: LNG Procurement for Power

Client: J-Power

Location: Japan

Project Description: Study done for J-Power to understand the global LNG supply competiveness. This included: Estimation of full-cycle costs of LNG delivered to Japan from

various LNG export projects in the major existing and prospective supply regions globally to supply J-Power’s power plants.

Provided detailed analysis on availability of global LNG supplies and project competitiveness.

Analysis also included estimated support from potential NGL sales, where applicable, on effective costs of LNG supply from the projects.

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Case Study

Head Office: 3009 Post Oak Blvd., Suite 950, Houston, Texas 77056 Phone: +1 713 952 0186 Fax: +1 713 952 9861Regional Office: 8 Temasek Boulevard #22-04 Suntec Tower 3 Singapore 038988 Phone: +65 6222 7917 Fax: +65 6235 4415

www.galwaygroup.com

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