–

Investment Opportunity LNG Terminal

Gwadar Port AuthorityOrmara Naval

HarbourKarachi Port Trust

PasniSonmiani

Legend

Existing Ports

Potential sites

Port QasimAuthority

Keti Bandar

2

Port Qasim

EV site

Khirpranwala site

Confidential Pakistan LNG: site selection

_

INTRODUCTION

� EVTL – JV between Engro Corp and Royal Vopak of Netherlands

� First bulk liquid chemical, LPG and Cryogenic storage terminal at Port Qasim

� Handling 74% of bulk liquid chemical imports; 70% of LPG imports

� International Certifications besides customer audits

� Facilitated over USD 1.5b investment in Pakistan

� Operated by Engro

� Healthy returns

–– –4

� Healthy returns

INTRODUCTION

• EVTL – A 50/50 JV between Engro Chemical Pakistan Limited and Royal Vopak of

Netherlands

• Operating a state of the art bulk liquid chemical and LPG storage terminal at Port

Qasim

• Handling 74% of the bulk liquid chemical imports and 70% of the LPG imports to

Pakistan

• International Certifications

24/05/2011<Footer> 5

Business Ventures

Engro Polymer & Chemicals 56%

100% 100%

63% 95%

Engro Fertilizers 100%

Engro Vopak50%

100%

Business Ventures Investing USD 1.5b

Engro Vopak Terminal

Limited (EVTL)1997 50 %

Royal Vopak

(Netherlands)

Bulk Chemical

Handling Jetty

Engro Polymer & Chemicals

Limited (EPCL)1999 56 %

Mitsubishi

Corp/IFC

PVC & VCM

Manufacturing

ENGRO’s Subsidiaries/AffiliatesYear of

Est.

Engro’s

Stake

Key Equity

PartnersBusiness Areas

Engro Chemical Pakistan

Limited (ECPL)

1965/

1991100 %

Dawood Group,

General Public

& Others

Fertilizer Manufacturing

& Marketing

Expansions Underway

Urea Production Capacity

Expansion (US$ 1050mn)

Back Integration into VCM

& PVC capacity Expansion

(US$ 240mn) completed

Terminal Capacity Expansion

completed (US$ 35mn)

Avanceon 2003 63 % Wains Industrial Automation

Engro Foods Limited (EFL)2005 100 % None

Food Processing &

Marketing

Engro Energy Limited (EEL) 2006 95 % IFC Power Generation

Engro Eximp Private

Limited (EEPL)2006 100 % None

Fertilizer Trading

& Rice Exports

Engro PowerGen (Pvt.)

Limited (EPGL)2008 100 % None

Power Project

Development

(US$ 240mn) completed

Dairy Ice-cream

Manufacturing Plant

(US$ 100mn) completed

Integrated Rice Mill under

construction by 4Q10

Acquired equity in US Company

Power Generation

Plant (US$ 220mn) completed

New Project Feasibilities

underway-TharEngro

PowerGen

Engro’s Financial Strength

• ENGRO is a large corporation of the country with double digit earning growth

in the last decade

• Assets: PKR 164.8 billion ( USD 1.94 billion)

• Revenue: PKR 79.9 billion ( USD 940 million)

• Profit after tax: PKR 6.8 billion ( USD 80million)

• Market capitalization: PKR 63.5 billion (USD 740 million)

24/05/2011<Footer> 8

• Currently has long term credit rating of AA from Pakistan Credit Rating Agency

• USD 1.05bn Investment in one of the world’s largest fertilizer complex

• Presence in 14 countries around the world (In Middle East, N. Africa, S.E. Asia

& USA) - Mainly through Avanceon

� Engro Vopak has maintained an impeccable safety record since its commissioning in November

1997 and is internationally certified for safety, security, quality, and environment.

� Over 13 Years of safe operation

� 4,845 days with out LTI as of February 28, 2011

� Engro Vopak has acquired an Integrated Management System (IMS) for a combined and

coordinated certification on ISO 9001, ISO14001 and OHSAS 18001 standards.

� EVTL is the only terminal in Pakistan which has been audited and verified by the European based

� Engro Vopak has maintained an impeccable safety record since its commissioning in November

1997 and is internationally certified for safety, security, quality, and environment.

� Over 13 Years of safe operation

� 4,845 days with out LTI as of February 28, 2011

� Engro Vopak has acquired an Integrated Management System (IMS) for a combined and

coordinated certification on ISO 9001, ISO14001 and OHSAS 18001 standards.

� EVTL is the only terminal in Pakistan which has been audited and verified by the European based

E V T L

� EVTL is the only terminal in Pakistan which has been audited and verified by the European based

international non-profit making foundation, Chemicals Distribution Institute for Terminals (CDI-T).

� Engro Vopak has also acquired certification on International Code for the Security of Ships and Port

Facilities (ISPS).

� EVTL is the only terminal in Pakistan which has been audited and verified by the European based

international non-profit making foundation, Chemicals Distribution Institute for Terminals (CDI-T).

� Engro Vopak has also acquired certification on International Code for the Security of Ships and Port

Facilities (ISPS).

� Vopak Standards implemented. Which includes Safety, Health, Environment, Security, Maintenance,

Procurement, Operations, CRM, Sustainability etc.

� Internal survey of Behavioral Based Safety (BBS) completed in 2010; Average score was 3.86 (out of

5) and the last average of 3.1 in 2008; which shows an improving trend.

� EVTL secured more than 75th percentile score 4 (out of 5) in all ten elements of “Organizational

Culture Survey” conducted in 2010 by BST Malaysia, which is validating internal BBS survey.

� THA is an advanced version of CDI-T audit. An external audit was done by Vopak in 2010. EVTL

scored 95% score in this audit.

� Vopak Standards implemented. Which includes Safety, Health, Environment, Security, Maintenance,

Procurement, Operations, CRM, Sustainability etc.

� Internal survey of Behavioral Based Safety (BBS) completed in 2010; Average score was 3.86 (out of

5) and the last average of 3.1 in 2008; which shows an improving trend.

� EVTL secured more than 75th percentile score 4 (out of 5) in all ten elements of “Organizational

Culture Survey” conducted in 2010 by BST Malaysia, which is validating internal BBS survey.

� THA is an advanced version of CDI-T audit. An external audit was done by Vopak in 2010. EVTL

scored 95% score in this audit.

E V T L

scored 95% score in this audit.scored 95% score in this audit.

� Environmental Management System (ISO 14001:2004) certification in 2005, surveillance and re-

certification audit to date without any non compliance.

� No Environmental damage/Incident since startup (1997).

� Annual Environmental Compliance reports which includes

� Toxic Gas Monitoring in all product areas

� Vehicle Gas Emissions Monitoring

� Equipment Exhaust Gas Monitoring

� Environmental Management System (ISO 14001:2004) certification in 2005, surveillance and re-

certification audit to date without any non compliance.

� No Environmental damage/Incident since startup (1997).

� Annual Environmental Compliance reports which includes

� Toxic Gas Monitoring in all product areas

� Vehicle Gas Emissions Monitoring

� Equipment Exhaust Gas Monitoring

E V T L

� Sewerage/Effluent Waste Monitoring

� Hazardous waste disposal through incineration

� Solid/Horticulture waste disposal on CDGK/PQA approved sites

� Reduced EVTL’s carbon foot print (equivalent) from approximately 850 tons/annum to 785

tons/annum through Energy Management and LEAN initiatives (executed 8 projects).

� Soil and Ground water assessment being conducted in 2011 to evaluate any contamination inside

EVTL boundaries.

� Sewerage/Effluent Waste Monitoring

� Hazardous waste disposal through incineration

� Solid/Horticulture waste disposal on CDGK/PQA approved sites

� Reduced EVTL’s carbon foot print (equivalent) from approximately 850 tons/annum to 785

tons/annum through Energy Management and LEAN initiatives (executed 8 projects).

� Soil and Ground water assessment being conducted in 2011 to evaluate any contamination inside

EVTL boundaries.

EVTL Mangrove PlantationEVTL Mangrove PlantationEVTL Mangrove PlantationEVTL Mangrove PlantationEVTL Mangrove PlantationEVTL Mangrove Plantation

Existing Jetty – Handling capacity 75,000 DWT- Facilitating over USD 1.5b investments

–– –

EVTL Jetty – LPG ship being unloaded- USD 10m investment in storage

E V T L

Dangerous Chemicals stored and handled in environment friendly manner

First cryogenic (-103 degress C) product being unloaded at EV Jetty

Ethylene Storage Tank: USD 33m Investment in 2009

Rapidly growing gap between energy demand & indigenous supply …

137.64

100.0

125.0

150.0

(Mill

ion

TO

Es)

Oil/LPG Gas Coal Hydel Nuclear Renew ables

103.80

E V T L

Initial Target Initial Target

39

33.84

44.0848.91

0.0

25.0

50.0

75.0

19

94

-95

19

96

-97

19

98

-99

20

00

-01

20

02

-03

20

04

-05

20

06

-07

20

08

-09

20

10

-11

20

12

-13

20

14

-15

20

16

-17

20

18

-19

20

20

-21

20

22

-23

20

24

-25

(Mill

ion

TO

Es)

Options limited to import gas

Energy Crisis of the Country

• A total of 95.8 TWh of electricity was generated in Pakistan from July 2008

to June 2009.

– Generation through domestic natural gas 32.4%

– Furnace Oil contributes 35.4%

– Hydel Power 30.3%

• Currently, the country is facing over 5000 MW shortfall of electricity which

forced PEPCO to carry out 10 to 12 hours of load shedding. forced PEPCO to carry out 10 to 12 hours of load shedding.

• Amongst all the available fuels for thermal power projects, gas offers the

most benefits in terms of plant economics, efficiency, availability and

emissions

• Currently, Pakistan is having a gas deficit of around 1 billion cubic feet per

day

• LNG is the only viable fuel option for developing new power project which

can then be developed on fast track.

Pipeline import options are challenging

Gas Import PipelinesGas Import Pipelines

Disputed

Territory

CHINACHINAPARS

OFFSHORE FIELD

TURKMENISTAN

IRAN

AFGHANISTAN

TAJIKISTANCaspian Sea

Kandhar

Mazar-e-sharif

Quetta

TURKMENISTAN

AFGHANISTAN

TAJIKISTANCaspian Sea

Islamabad

Lahore

Multan

Sui

Herat

Mazar-e-sharif

Quetta

Dauletabad Field

AssaluyahBHONG

D.I Khan

TAP

Iran (IPI) - structurally most cost efficient, however politica l uncertaintiesTurkmenistan (TAP) - broad international support. Issues - Reserves? Sec urity? Qatar-Pakistan - technically feasible, political benign; Qatar’s pr iority?

PARS

OFFSHORE FIELD

QATAR

INDIA

Arabian Sea

Jiwani

PAKISTAN

Charhbakhr

Bandar Abbass

Gawadar Karachi

INDIA

Arabian Sea

Charhbakhr

Bandar Abbass

BHONG

100kms

IP

QP

Need of Time – EVTL’s LNG TERMINAL

• EVTL focus is on the fastest method to facilitate LNG flow into the NG

pipeline network in Pakistan through a floating terminal on open access

concept.

• “Open access” is an independent terminal concept where several suppliers

or off-takers can be customers and own terminal capacity

• EVTL strongly positioned with suppliers, buyers, GOP & GoP/GoS

• First time mover advantage significant; achievable

• Our Project will

– Provide Credibility to Suppliers - COP, GDF Suez, Shell, Mitsubishi, BG and BP…..

– Ensure Phased Capacity Growth– floating/offshore moving to land storage

� Brown Field Site (Option 3):

E V T L

EasyLNGEasyLNG TMTM -- Regasification Solution Regasification Solution

25

� EVTL’s focus is on establishing an open access or merchant floating storage re-gasification terminal as

part of the unbundled structure under the LNG Policy 2006 with following salient features.

� EVTL’s focus is on establishing an open access or merchant floating storage re-gasification terminal as

part of the unbundled structure under the LNG Policy 2006 with following salient features.

ITEM PARAMETERS

Mooring

Infrastructure

� Side by Side Arrangement with Ship to Ship

transfer

� Jetty design to handle ships having LOA of 350m

E V T L

Size of LNGC

� 29,000 MT to 60,000 MT

� Deepening and Widening of the PQA channel is planned

and there after LNGCs of larger size may arrived at Jetty

Size of FSRU � 50,000 to 60,000 MT

Gas Flow Rate � Upto 600 MMSCFD

E V T L

EVTL’s Progress

• NOC from PQA for Greenfield terminal at Khiprianwala issued in 2010

� EVTL completed Quantitative Risk Assessment (QRA)

� EVTL completed ESIA and public hearing was held in 1st week of April

� Lloyd’s Register completed HAZID & Channel simulation

� OGRA preliminary construction license obtained; full license application submitted

� Preliminary technical & financial proposal approved by PQA; draft IA obtained .

� Update/vetting of screening study underway with Energy and Power (+/-20% )� Update/vetting of screening study underway with Energy and Power (+/-20% )

• Potential Partners Sought

� FSRU

� EPC

• Offtakers

• IPPs and Fertilizer producers - demand of over 7 mtpa

� Investment and job creation including growth of ancillary businesses

� Knowledge sharing and upgrade of skills of port and terminal resources

� Understanding of international standards and procedures including equipment upgrade at

Port

� Reduced carbon footprint of the country

� Efficient operations of power plants

� Fast track development with stakeholders

� GDP growth

� Safe, reliable and efficient operations by a credible organization of Pakistan which is of

comfort to stakeholders

E V T L

Natural Gas Distribution Grid – Pakistan …

State-controlled entities Sui Northern Gas Pipelines Ltd. (SNGPL) and Sui Southern Gas Company Ltd. (SSGCL) have geographical

31

have geographical monopolies in the northern and southern parts of Pakistan respectively for the purchase, transmission, distribution and sales / marketing of natural gas

The Bigger Picture-Regional Energy Corridor

SupplySupplySupplySupply

ISGC under PPPISGC under PPPISGC under PPPISGC under PPP

TransmissionTransmissionTransmissionTransmission

SSGC/SNGPLSSGC/SNGPLSSGC/SNGPLSSGC/SNGPLPSO/OMCsPSO/OMCsPSO/OMCsPSO/OMCs

Distribution Distribution Distribution Distribution

DISCOs DISCOs DISCOs DISCOs Gas and PowerGas and PowerGas and PowerGas and Power

Aggregator of Gas Cross Country/Border Industry

E V T L

Aggregator of GasE&P

Imported GasLNG

Terminal CapacityPipeline Capacity

Cross Country/Border Oil and Gas pipelines

IndustryIPPsResidences