Atlantic LNG: l b l h k bGlobal Benchmark by 2013

Colombia - Mar 22, 2010Oscar Prieto, CEO, Atlantic LNG

World Energy Trends

44%Projected increase in j

world marketed energy consumption

Average annual increase

Total World: 2%

OECD: 1%

Non OECD: 3%

South America: 2.8%

World Energy TrendsEnergy Consumption by Fuel, 1980-2030

(quadrillion Btu)50

ProjectionsHistory

30

40

Natural Gas

Liquids

10

20

Nuclear

Coal

Nonhydro renewables

Projected demand growth: World S A

01980 1990 2000 2005 2010 2020 2030

Nonhydro renewablesHydropower

Projected demand growth: World S.A.Oil 1.4% 1.8%Gas 2.4% 3.9%Coal 2 4% 2 9%Coal 2.4% 2.9%Nuclear 1.0% 0.5%Other 2.4% 3.3%

World Energy Trends

Biggest increaseBiggest increase in usage is expected in Power Generation

World Electricity Generation

• Fossil fuels forecasted to play important role

• Electricity powerElectricity power generation will account for 40% of all energy demand byenergy demand by 2030.

• Natural Gas will remain an attractive option for poweroption for power generation

Natural Gas: environmentally friendly

Fossil Fuel Emission Levels - Pounds per Billion Btu of Energy Input

Pollutant Natural Gas Oil CoalCarbon Dioxide 117,000 164,000 208,000C b M id 40 33 208

Pounds per Billion Btu of Energy Input

Carbon Monoxide 40 33 208Nitrogen Oxides 92 448 457Sulfur Dioxide 1 1,122 2,591Particulates 7 84 2,744

Mercury 0.000 0.007 0.016Mercury 0.000 0.007 0.016Source: EIA - Natural Gas Issues and Trends 1998

Natural Gas: economical option

• Natural Gas vs Oil current assumptions

– World oil prices to return to previous high levels after 2012 and to remain high through 2030.

– World natural gas prices to remain suppressed with the impending glut in LNG marketthe impending glut in LNG market

– Long Term: oil at US$70/barrel (or $12/mmbtu equivalent) for 2013 2018equivalent) for 2013-2018

– Long Term: natural gas at $5-$6/mmbtu

Actual and forecasted energy prices

Energy Prices 2004-2018

18

12

14

16

8

10

12

$/m

mbt

u BrentNymex HH

2

4

6

0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Year

Source http://www.cmegroup.com/

Natural Gas in South America

• EIA forecasts that natural gas will be the fastest-ggrowing energy source in Central and South America

• Several countries intend to increase use of natural gas• Several countries intend to increase use of natural gas for power generation to diversify electricity fuel mixes

N t l i li i f t t i i l i th• Natural gas pipeline infrastructure is in place in the region, but concerns about supply security have prompted development of LNG regasification terminals

South America LNG Imports

• Argentina: – Commissioning of the Bahia Blanca GasPort LNG

facility, South America's first ever LNG receiving facility and the world's second dockside regasification facility, with the initial capacity to import up to three LNG cargoes per month, each of which will contain approximately 3 Bcf of gas.

• Brazil: – Two LNG regasification Terminals at Pecem in the

northern Brazilian state of Ceara and at Guanabara Bay in Rio de Janeiro

– Considering a third LNG terminal by 2013g y

South America LNG Imports

• Chile: Impo ted fi st LNG Ca go in Septembe 2009 f om Atlanti– Imported first LNG Cargo in September 2009 from Atlantic LNG

– 2.5 mtpa terminal in Quintero Bay with the capacity to meet up to 40% of the country's demand for natural gas. p y g

– BG is a 40% shareholder in Chile's first LNG import terminal. The terminal is partial operation and expected to be in full operation by third quarter 2010.

– Floating storage and onshore regasification: LNG Mejillones– Floating storage and onshore regasification: LNG Mejillones (Chile): construction works started in April 2008 is now operational.

• Uruguay:– Considering LNG imports, as it looks to wean itself off costly

fuel oil for power generation and to diversify its supply base.

Natural Gas in Colombia

• Energy mix similar to that of Brazil

C tl lf ffi i t i t l d t f t l• Currently self-sufficient in natural gas and an exporter of natural gasto Venezuela

• Electricity generation uses a combination of coal natural gas and• Electricity generation uses a combination of coal, natural gas andhydropower. Drought is a challenge.

• Energy usage forecasted to increaseEnergy usage forecasted to increase

• LNG can provide a cheap, environmentally friendly means of supplementing Colombia’s growing energy needs and address the pp g g g gydrought challenge

LNG Regasification

• A regasification facility is required for converting LNG back to natural gas for transmission though the pipeline g g p pinfrastructure.

• Options for regasification include:– Onshore regasification terminalsOnshore regasification terminals– Offshore regasification terminals (2 types)

• FixedG it b d t t– Gravity based structures

– Offshore Platforms– Artificial Offshore islands

• Floating– FSRU (Floating Storage Regasification Unit)– Floating Regasification Unit (no storage)Floating Regasification Unit (no storage)

LNG Regasification

• Floating Storage Regasification Units (FSRU) provide an alternative to traditional onshore

ifi ti B fit i l dregasification. Benefits include:– Faster return on capital invested through reduced

planning and permitting.

– Reduced construction time if option to convert an existing LNG vessel is taken. (E.g. 2 years from FID to delivery for Golar Winter and Golar Spirit vessels)to delivery for Golar Winter and Golar Spirit vessels).

– Can be moved from one demand centre to anotherto cater for seasonal or intermittent market demand.

– Mitigates environmental and safety concernsaround onshore regasification facilities.

LNG Regasification: FSRU example

Golar Spirit

- 129,000 m3

storage

- 2.5bcm/year

LNG Regasification: FSRU example

Golar Winter

- 138,000 m3

storage

- 5.1 bcm/year

LNG: a good strategic supply option

• Stability of SupplyLNG h l di if l b d i– LNG helps diversify supply base and increase reliability. Past supply challenges:– Past supply challenges:• Jan 2006 – Russian Gazprom cutting off pipeline

natural gas supplies to Ukrainenatural gas supplies to Ukraine• Jan 2008 - Turkmenistan cut gas exports to Iran

resulting in Iran cutting exports to Turkey. S b tl G i d t lSubsequently, Gazprom increased natural gas exports to Turkey.

• Jan 2009 –A dispute with Ukraine led Russia toJan 2009 A dispute with Ukraine led Russia to curtail gas exports for 3 weeks.

Worldwide LNG Capacity

CountryCountryCapacity

(mt/y)Project Name # of

Trains Capacity

(mt/y)

UAE 5.8 Adgas LNG 3 5.8Algeria 20.3 Algeria LNG 21 20.3

Arun & Botang 14 28.8Tangguh 2 7.6

T&T 15.4 Atlantic LNG 4 15.4B i Brunei LNG 5 7 2

Indonesia 36.4

Brunei Brunei LNG 5 7.2Damietta 1 4.8

Egyptian LNG 2 7.2Darwin 1 3

NW Shelf LNG 5 16.5Australia

Egypt 12

19.5 S e G 5 6 5Equatorial

Guinea 3.7 EG LNG 1 3.7

Alaska 1.5 Kenai 2 1.5Libya 3.2 Marsa El Brega 4 3.2

Malaysia 22.7 MLNG Satu Dua Tiga 8 22.7

Nigeria 21.8 Nigeria LNG 5 21.8Oman 10.6 Oman LNG 3 10.6

Qatar Gas 5 25 3Qatar Gas 5 25.3RasGas 6 28.5

Russia 4.8 Sakhalin LNG 1 4.8Norway 4.2 Snohvit LNG 1 4.2Yemen 3.4 Yemen LNG 1 3.4

Qatar 53.8

LNG Plants coming on stream

Country Project Name # of T i

Capacity( t/ ) TimeframeCou t y oject a e Trains (mt/y) e a e

Angola Angola LNG 1 5.2 2012Australia Pluto LNG 1 4.3 2011A t li G LNG 3 15 2014Australia Gorgon LNG 3 15 2014

Iran Iran (NIOC) LNG 2 10.8 2011

N N di LNG 1 0 3 2010Norway Nordic LNG 1 0.3 2010Peru Peru LNG 1 4.4 2010

Qatar Qatar Gas & R G 3 23.4 2010Q RasGas

Planned LNG Projects

Country Project Name # of Trains

Capacity(mt/y) Timeframe

Indonesia Abadi 3 8.5do es a bad

Abadi LNGAustralia Pacific LCSG (LNG)BonparteFisherman's Landing

Australia

Fisherman s LandingGladstone-Santos LCSGGladstone-Shell LCSGIchthys LNGSunrise LNG

23 47.2

Wheatstone LNGQueensland Curtis LCSGScarborough LNGBrowse LNG

Nigeria Brass LNG 11 30.4Venezuela Delta Caribe 1 4.7

Canada Kitimat LNGPapua New

G Liquid Niugini 3 19.8Guinea Liquid Niugini 3 19.8

Iran Pars LNG 2 5Russia Shtokman LNG 2 7.5

Planned LNG Projects

39 Countries propose LNG Import Terminals

O l 22 t i tl i t LNG• Only 22 countries currently import LNG• The number of LNG importers may double this decade

• Argentina • Bahamas• Bahrain

• Dubai• Estonia• France

• Japan• Korea• Kuwait

• Romania• Singapore• South Africa• Bahrain

• Bangladesh• Brazil• Canada

• France• Germany• India• Indonesia

• Kuwait• Malaysia• Mexico• Netherlands

• South Africa• Sweden• Thailand• United KingdomCanada

• Chile• China• Croatia

• Indonesia• Ireland• Israel• Italy

• Netherlands• Pakistan• Panama• Phillipines

• United Kingdom• United States• Uruguay

• Cyprusy

• Jamaicap

• Poland

Introducing Atlantic LNG

Atlantic LNG is the best option for Latin American

supply

Who we are

• World’s 7th largest LNG production capacity

• A mould-breaking project• A key contributor to industry

i fl ti i t• Largest supplier of LNG imported by US

• Largest single contributor

inflection point• A significant role in Atlantic

arbitrage• Largest single contributor to T&T local exports

• High contributor to T&T

• A secure source of LNG to global markets

• 1800 cargoes to datelocal GDP

1800 cargoes to date

Where we are locatedWhere we are located

• Plant Facility located in Point Fortin, South West coast of Trinidad and TobagoTobago

• Trinidad lies in the Caribbean Sea off the northeast coast of Venezuela.

• Population: 1.3 million

• Monetary Unit: TTD

• Language: English (official)

• Trinidad and Tobago is a unitary state, with a parliamentary democracy modeled after that of the UK.

• Resources: Oil, Natural GasResources: Oil, Natural Gas

Each Train, different owners

BP BG Repsol YPF

Suez / GDF

NGC

Train 1 34% 26% 20% 10% 10%Train 1 34% 26% 20% 10% 10%

Train 42.5% 32.5% 25%2/3Train 4 37.78% 28.89% 22.22% 11.11%

Train Specifications

Train 1 Train 2/3 Train 4

1st loading Apr 30, 1999 Aug 12, 2002 Dec 15, 2005g p , g ,& Apr 28, 2003

,

C t ti 965 1 1b 1 2bConstruction Cost (USD)

965m 1.1b 1.2b

Capacity 3.0 mtpa LNG 3.3 mtpa LNG 5.2 mtpa LNGCapacity 3.0 mtpa LNG & 6000 bpd of NGLs

3.3 mtpa LNG & 6000 bpd of NGLs each

5.2 mtpa LNG & 12,000 bpd of NGLs

Global Liquefaction Capex ($/tpa)

1000Greenfield projects

E i j t800 Expansion projects

400

600

ALNG 1 ALNG 4

200

400 ALNG 2/3

0

200

Source: Poten & Partners, BG

1998 2002 2006 2010

Start up year

About our product

• LNG FACTS:– Natural Gas is converted to LNG cooling it to -160°C– LNG is an odorless, non-toxic and non-corrosive liquid – LNG evaporates quickly and disperses, leaving no

residueresidue. – No cleanup required for LNG spills on land or water.– A volume reduction of 600:1 makes LNG one of the

most efficient ways to get gas from source tomost efficient ways to get gas from source to destination.

– LNG allows gas consumers access to vast natural gas reserves located over the globe.

– LNG transportation is safe as it cannot be ignited

From Natural Gas to LNG

InletSeparation

& Metering

Fuel System

Boil-OffG

FeedGasfrom

PipelineFuel Gas

LiquefactionAcid Gas Dehydration MercuryLNG Storage

and

GasRegeneration Gas

CO2

andRefrigeration

GRemoval

Dehydration yRemoval

andLoading

FEED PRETREATMENT

NGLRecovery

East Coast Gas SupplyT b

Caribbean Sea

T i id d

Tobago

Trinidad

Atlantic

Port-Of-Spain

Gulf Piarco Airport Atlantic Ocean

Pt. Lisas

Dolphin

Block 5ABG/Texaco

Gulfof

Paria

p

GaleotaPoint Mahogany

AbyssiniaPicton

San-Fernando

36”& 56”

40”Columbus Poui

Immortelle

Flamboyant

Pt. Fortin 30”Beachfield

36”& 56”36”& 56”

Cannonball

40Channel

BanyanCassia

Amherstia

Sparrow, Parangand Renegade

North Coast Gas SupplyO hid

Tobago

DAB

IrisOrchidPoinsettia

Chaconia

C a r i b b e a n

S e a

Hibiscus

Venezuela

Trinidad

S e aPort of Spain

24”

Penal

Point Lisas

Point Fortin (LNG)

Venezuela

24” BG natural gas line

0 50 km

Where our LNG goes

(To be inserted: world map showing our buyers’ destinations)

1 345 9

1 2 3

610

7

8

1. Lake Charles2. Gulf Gateway Energy Bridge3. Elba Island4. Cove Point5. Everett6. AES Andres (Dom Rep) & Penuelas (Puerto Rico)7. Brazil8. Chile9. Spain Bilbao, Huelva, Cartagena, Barcelona)10. Far East

Our Corporate Strategy

Some Atlantic Facts

• Track record for delivery– Safely delivered over 1800 cargoes– Largest supplier of imported LNG to USA.– Close integration of production and shipping to– Close integration of production and shipping to

ensure reliable delivery and no delays.– High customer satisfaction.– High plant reliability 95% in 2009 and projected

97% in 2010.• Geographyg

– Close proximity to Colombia translates into low shipping costs and less boil off.

– Cargoes from Atlantic already delivered to Brazil, g y ,Chile, Argentina

Some Atlantic Facts

Shipping Data (North Coast of Colombia)

Destination Source Distance Transit Est. Ship CostDestination Source (Nautical Miles) (days) Cost

($/MMBtu)Colombia Trinidad 905 2 $0,10 Co o b a dad 905 $0, 0Colombia Nigeria 5012 11,5 $0,30 Colombia EG 5107 11,8 $0,31 Colombia Egypt 6012 14 $0,36 Colombia Qatar 9079 21 $0,74

Atlantic as a source of supply

• 100% of our production is already committed to our Buyers, many of whom have 20 year contracts

• However, many of our LNG Buyers are affiliated with our shareholders and as a result, LNG canwith our shareholders and as a result, LNG can be sourced through this avenue (as was done in the case of shipments to Chile, Argentina and Brazil)Brazil).

Conclusion

• World energy demand forecasted to increase between 2010-2030.

• Natural Gas is an economic, environmentally friendly fossil fuel which has an important role supporting growing energy p pp g g g gydemand.

• Natural gas prices expected to remain lower than oil during• Natural gas prices expected to remain lower than oil during this period making it an economic alternative.

G i f l G hi h b• LNG is a secure source of Natural Gas which can be imported from many global suppliers.

Conclusion (contd.)

• Colombia’s energy mix already includes natural gas.

• Atlantic LNG’s location, reliability and reputation for working with buyers makes it a stable, economical choice as a supplier of LNG to the South American market.pp

• Floating Regasification can offer timely economical means of accessing LNGof accessing LNG

• We have International shareholders who can be engaged to dd daddress your energy needs.

Atlantic LNG: l b l h k bGlobal Benchmark by 2013

Colombia - Mar 22, 2010Oscar Prieto, CEO, Atlantic LNG