New LNG Markets in Asia Pacific and Middle EastShahriar Fesharaki Chief Operating Officer FGELNG Supplies for Asian Markets March 2, 2011 Grand Hyatt Hotel, SingaporeThis presentation material contains confidential and privileged information intended solely for FGE clients. The dissemination, distribution, or copying by any means whatsoever without FACTS Global Energys prior written consent is strictly prohibited. , , py g y y gy p yp

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LNGShareMarginalButGrowingwww.FGEnergy.com

ShareofLNGinGlobalNaturalGasDemand

3,000 LNG 2,500 2 500 NaturalGas Natural Gas

2,000

bcm

1,500

1,000

500

0

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Source:BPStatisticslReview (2010),FACTSGlobal Energy ( ), gy

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2009

AsiaisStillKingwww.FGEnergy.com

GlobalLNGTrade:20002010225

200020023% 5% 30%

20109%

1%

17572%

60%

150 125mmt

100 75 50 25 0 2000 2001 2002 2003Asia

2004Europe

2005Americas

2006MiddleEast

2007

2008

2009

2010

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EastofSuez:NewImportersEmergingwww.FGEnergy.com

2010

Kuwait

134mmtExisting Marketsin Asia(JKTIC) 98% Existing MarketsinAsia (JKTIC) 91% 9 %

2015 170mmtNewMarkets inAsiaand MiddleEast 9%

Kuwait,UAE, Bahrain,Pakistan, Singapore, Malaysia,Thailand Vietnam

NewMarkets New Markets inAsiaand MiddleEast 2%

2020 214 mmt 214mmtExistingMarkets inAsia(JKTIC) 84%

NewMarketsin AsiaandMiddle East 16%

Kuwait,UAE,Bahrain, SaudiArabia,Pakistan, Malaysia,Singapore, Thailand,Vietnam, Bangladesh

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NewLNGMarketsinAsiawww.FGEnergy.com

AsianLNGImports40 Thailand 35 30 25 mmtpa 20 15 10 5 0 2011 2012 2013 2014 2015 2020 2025 2030 Pakistan Malaysia Others* Singapore

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NewLNGMarketsintheMiddleEastwww.FGEnergy.com

MiddleEastLNGImports35 SaudiArabia 30 25 mmtpa 20 15 10 5 0 2009 2010 2012 2015 2020 2025 2030 UAE(NorthernEmirates) Kuwait Bahrain UAE(Dubai)

We believe a large gas deficit in the coming years will push Saudi Arabia to import LNG. Saudi Arabia is expected to emerge as a large LNG importer in the f h future. LNG imports are expected to start from 2017/2018. Saudi Arabia can burn crude and not import LNG. The size of the gas shortage is highly dependent to their approach h for f development of non associated gas reserves as well.

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Thailand:ImportsontheRisewww.FGEnergy.com

Thailand's NaturalGas Demand

ThailandGasDemandbySector(2010)3,500Transport 1% Others 11%Power Industry Transport Others*

3,000 2,500mmscf/d

Industry 13%

2,000 1,500

Power 75%

1,000 500 0 2000 2005 2010 2015 2020 2025 2030*Includesenergyuseandnonspecificiedothers;excludesdistributionlosses

Thailand's GasImports1,200 1,000 800mmscf/dPipelineImports LNGImports LNG Imports

600 400 200 0 2000 2005 2010 2015 2020 2025 2030

Thailands gas demand under the basecase scenario is projected to grow at 2% per annum between 2010 and 2030, from 3.3 bscf/d to almost 5 bscf/d. The power sector currently accounts f l for about 75% of b f Thailands gas demand, and going forward, it will continue to dominate the nations gas consumption. ti7

ThailandsLNGImportswww.FGEnergy.com

Thailands LNG Terminal: EPC Contractor(s): A consortium of GS Engineering and C t ti d Construction, K Korea G Gas C Corp, D Daewoo Engineering and Hanyang Corp. Regasification Capacity: 5 mmtpa LNG Storage Capacity: 320,000 m3 (2 x 160,000) Estimated Cost: US$880 million Startup: 3Q2011 Contracted Supplies:1. HOA with Qatargas for 1 mmt 2. Likely to procure on a spot and short-term basis initiallyMap Ta Phut

Thailand

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MalaysiaGasDemandontheRisewww.FGEnergy.com

MalaysiaGasDemandbySector (2010)Transport 1% Others 15% Power 43%mmscf/d

Malaysia's NaturalGas Demand3,500 3 500 3,000 2,500 2,000 1,500 1,000 500 0 2000 2005 2010 2015 2020 2025 2030Power Industry ResidentialandCommercial Transport Others Others*

Industry 41%

*Includesagricultural use,fieldandliquefactionuse,andnonspecificiedothers;excludesdistributionlosses.

Malaysian gas demand is expected to grow at 23% per annum over the next twenty years to well Malaysian 2 3% over 6 bcf/d by 2030 under the basecase scenario. The power and industrial sectors will continue to dominate Malaysias gas demand through 2030.

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Malaysia:FromExportertoImporter?www.FGEnergy.com

MalaysiasLNGTerminal: EPC Contractor(s): Perunding Ranhill Worley and EPCContractor(s): RanhillWorleyandMuhibbah Engineering

Regasification Capacity:3.8mmtpa LNGStorageCapacity:320,000m3(2x160,000) EstimatedCost:3billionringgit(US$988million) Startup:EndJuly2012 ContractedSupplies:1. 2. Nineteencargoes(around1.24mmt)from g ( ) Pluto1throughQ12014 3.5mmtpa fromGLNGTrain1and2starting 2015for20yearsMalacca LNG Terminal

Peninsular Malaysia P i l M l i

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Kuwait:GasProductionMarginalComparedtoOilwww.FGEnergy.com

In 2009, gross gas production was around 1.3 bscf/d, representing an annual increase of 7% from 20002009. In 2009, about 89% of gross gas production was , g g p delivered into the domestic market and roughly 11% of gross gas production was lost as gas shrinkage and flaring.Kuwait'sGrossGasProduction(19752009)1.6 1.4 1.2 1.0bscf/d dShrinkage,LossandFlaring Reinjection MarketedProduction

Kuwait'sGrossGasProduction(2009) Total:1.3bscf/dShrinkage, Lossand Loss and Flaring 11%

Marketed Production 89%

0.8 0.6 0.4 0.2 0.0

Kuwait is not expected to d develop its nonassociated gas reserves quickly due to technical challenges in gas production from tight and complex reserves.

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KuwaitsGasConsumptionwww.FGEnergy.com

Kuwait'sGasConsumption (2009) Total:1.2bscf/d

3.5Others

Kuwait'sGasConsumption (19752030)Industry Power

3.0 2.5 2.0bscf/d

Others 39%

Power 35%

1.5 1.0

Industry 26%

0.5 0.0 1975 1980 1990 1995 2000 2005 2010 2015 2020 2025 2030

The growth rate of gas consumption is expected to be strong from 20102020, due to high consumption for power generation and water desalination. Natural gas represents 32% of the fuel mix in Kuwaits power generation. The share of natural gas in power generation is expected to increase through 2030 as a result g p g p g of more gas supply from nonassociated gas reserves and LNG imports.12

Kuwait:TheRegionsFirstLNGImporterwww.FGEnergy.com

During August to October 2009, Kuwait imported 11 cargoes (0.66 mmt) from Australia (1 cargo) Russia cargo), (5 cargos), Oman (1 cargo), Belgium (1 cargo), Trinidad (2 cargos) and Malaysia (1 cargo). In June 2010, Kuwait Petroleum Corporation (KPC), Shell and Vitol signed a four year LNG agreement to import LNG within six months of the year starting from May 1, 2010. Based on the agreement, Kuwait imports 5 cargos per month, of which three cargos will be supplied by Shell and two cargos will be procured by Vitol. In 2010, Kuwait imported roughly 2.1 mmtpa of LNG from Abu Dhabi, Australia, Belgium, Malaysia, Oman, Trinidad, Egypt, Equatorial Guinea, Russia, and Yemen.mmtpa

Kuwait'sMonthlyLNGImports (Aug2009Oct2010)0.40 0.35

Yemen Belgium

0.30

Russia Nigeria

0.25

EquatorialGuinea Egypt

0.20

TrinidadandTobago Oman

0.15

Malaysia Australia

0.10

AbuDhabi

0.05

0.00

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SaudiArabia:GasFlaringontheDeclinewww.FGEnergy.com

Saudi Arabia started producing natural gas with its oil production. In 1975, approximately 85% of the countrys gas production was flared. In 1976, with the construction of the M f h Master G S Gas System (MGS) gas consumption started (MGS), i d in the power generation and industrial sectors and gas flaring declined substantially.

SaudiArabia'sGrossGasProduction (2009) Total:8.7bscf/dShrinkage, Lossand Flaring 11%

SaudiArabia'sGrossGasProduction (19752009)10.0 9.0 8.0 7.0 6.0 60bscf/dShrinkage,LossandFlaring ReInjection MarketedProduction

Marketed Production 89%

5.0 4.0 3.0 2.0 1.0 0.0

In 2009, Saudi Arabia produced 8.7 bscf/d of raw g gas. Marketed gas production accounted for 89% g p % of gross gas production and was consumed in the domestic market. Gas reinjection into oil fields were negligible at only 515 mmscf/d, since Saudi Arabia injected water instead of gas in j g important oil fields, such as the Ghawar oil field. The gas shrinkage was still high because of huge ethane and other liquids extractions.

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GasDemandinSaudiArabiaRobustwww.FGEnergy.com

SaudiArabia'sGasConsumption (2009) Total:7.4bscf/dOthers 16%

18.0 16.0 14.0 12.0 10.0bsc cf/dOthers Industry Power

SaudiArabia'sGasConsumption (19752030)

AAGRof3.5%

8.0 80 6.0 4.0 2.0 0.0 1975 1980 1990 1995 2000 2005 2010 2015 2020 2025 2030

Industry 30%

Power 54%

The Power sector will drive gas consumption Forecast to post an AAGR of nearly 5% through 2030 consumption. 2030. Gas demand for the Industrial sector will be more muted (2% pa). New petrochemical projects will generally consume naphtha. Gross gas production is not expected to increase to more than 12 bscf/d in 2020 and 15 bscf/d in 2030. This will result in 11 bscf/d of marketed gas production in 2020 and 13 bscf/d of marketed gas production in 2030, which will not be enough to meet growing gas demand in Saudi Arabia. A gas supply shortage will emerge from 2017/2018 2017/2018.15

SaudiArabiaLargeGasDeficitwww.FGEnergy.com

SaudiArabiaGasSupply/Demand(20102030)18 16 14 12bscf/dReInjection Shrinkage,LossandFlaring MarketedGasProduction GasDemand

GasShortage:~2bscf/d (roughly15mmtpaofLNG) GasShortage:Over500mmscf/d (roughly4mmtpaofLNG)

10 8 6 4 2 0 2010 2012 2015 2020 2025 2030

SaudiArabiaisnowconsideringLNGimportalternativestoalleviatethe gassupplyshortfall gas supply shortfall16

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