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Not For Redistribution LNG: A Changing Market 10 January 2017

LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

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Page 1: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

Not For Redistribution

LNG: A Changing Market

10 January 2017

Page 2: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

All statements in this presentation that are not statements of historical fact are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that address activities, events or developments that the Partnership expects, projects, believes or anticipates will or may occur in the future, particularly in relation to the Partnership’s operations, cash flows, financial position, liquidity and cash available for dividends or distributions, plans, strategies, business prospects and changes and trends in the Partnership’s business and the markets in which it operates. The Partnership cautions that these forward-looking statements represent estimates and assumptions only as of the date of this report, about factors that are beyond its ability to control or predict, and are not intended to give any assurance as to future results. Any of these factors or a combination of these factors could materially affect future results of operations and the ultimate accuracy of the forward-looking statements. Accordingly, you should not unduly rely on any forward-looking statements.

Factors that might cause future results and outcomes to differ include, but are not limited to, the following:

general liquefied natural gas (“LNG”) shipping market conditions and trends, including spot and long-term charter rates, ship values, factors affecting supply and demand of LNG and LNG shipping, technological advancements and opportunities for the profitable operations of LNG carriers;

our ability to leverage GasLog’s relationships and reputation in the shipping industry;

our ability to enter into time charters with new and existing customers;

changes in the ownership of our charterers;

our customers’ performance of their obligations under our time charters and other contracts;

our future operating performance, financial condition, liquidity and cash available for dividends and distributions;

our ability to purchase vessels from GasLog in the future;

our ability to obtain financing to fund capital expenditures, acquisitions and other corporate activities, funding by banks of their financial commitments, funding by GasLog of the revolving credit facility with GasLog entered into upon consummation of the initial public offering (“IPO”) and our ability to meet our restrictive covenants and other obligations under our credit facilities;

future, pending or recent acquisitions of ships or other assets, business strategy, areas of possible expansion and expected capital spending or operating expenses;

our expectations about the time that it may take to construct and deliver newbuildings and the useful lives of our ships;

number of off-hire days, drydocking requirements and insurance costs;

fluctuations in currencies and interest rates;

our ability to maintain long-term relationships with major energy companies;

our ability to maximize the use of our ships, including the re-employment or disposal of ships no longer under time charter commitments, including the risk that our vessels may no longer have the latest technology at such time;

environmental and regulatory conditions, including changes in laws and regulations or actions taken by regulatory authorities;

the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, requirements imposed by classification societies and standards imposed by our charterers applicable to our business;

risks inherent in ship operation, including the discharge of pollutants;

GasLog’s ability to retain key employees and provide services to us, and the availability of skilled labor, ship crews and management;

potential disruption of shipping routes due to accidents, political events, piracy or acts by terrorists;

potential liability from future litigation;

our business strategy and other plans and objectives for future operations;

any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity breach; and

other risks and uncertainties described in the Partnership’s Annual Report on Form 20-F filed with the SEC on February 12, 2016, available at http://www.sec.gov.

The Partnership undertakes no obligation to update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events, a change in our views or expectations or otherwise. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, the Partnership cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.

The declaration and payment of distributions are at all times subject to the discretion of our board of directors and will depend on, amongst other things, risks and uncertainties described above, restrictions in our credit facilities, the provisions of Marshall Islands law and such other factors as our board of directors may deem relevant.

Forward-Looking Statements2

Page 3: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys
Page 4: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

GasLog: A Global Leader In LNG Transportation4

2001 International owner and operator of LNG carriers since 2001 2017

~1,100 employees

onshore and on the vessels

GasLog Ltd.April 2012 IPO

GasLog PartnersMay 2014 IPO

$3.7 billion Q3 16 consolidated

revenue backlog

MonacoAthens

London

Busan (South Korea)

New York

28 VesselsConsolidated fleet

Singapore

Page 5: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

Strategy Of Long Term Charters With Quality Customers5

5 Newbuilds On Order (All With 7-10 Year Contracts)3

Consolidated Fleet Of 28 Vessels1

23 Vessels On The Water (18 With Long-Term Contracts)2

5 Vessels In The Spot Market (Trading In The Cool Pool)4

Page 6: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys
Page 7: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

LNG: A Changing Market For A Commodity In Demand7

Expanding LNG Spot Market – Increased Liquidity4

Growing FSRU Use Stimulating Greater Demand3

New LNG Exports Are Changing Global Energy Markets 1

LNG Demand Increasing In New & Existing Markets2

Page 8: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

0%

10%

20%

30%

40%

50%

1965 1975 1985 1995 2005 2015 2025 2035

Sha

re o

f P

rim

ary

En

erg

y

Oil Gas CoalHydro Nuclear Renewables

0%

5%

10%

15%

20%

25%

30%

35%

1990 2000 2010 2020 2030

Tra

de

as

Shar

e o

f G

lob

al C

on

sum

pti

on

LNG Pipeline Total

Gas And LNG Are Growing Fuels In Global Energy Mix8

Source: BP 2016 Energy Outlook

Gas expected to overtake coal as a

% of the overall global energy mix

Today Today

LNG expected to overtake pipeline gas as a % of the overall

global energy mix

Natural Gas Growth:

Abundant and low cost

Growing energy and power demand

Lower carbon emissions versus coal and oil

LNG Growth:

Location mismatch: gas reserves vs. energy demand (e.g. U.S. and Japan)

Natural Gas Market Share of Primary Energy Consumption International Trade As A Percent Of Global Consumption

Page 9: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

0

30

60

90

120

150

0

2

4

6

Au

stralia

Pacific T

1

Au

stralia

Pacific T

2

Gla

dsto

ne

Sab

ine P

ass T1

Go

rgon

Ma

laysia

LNG

T9

Petro

na

s FLNG

1

Sab

ine P

assT2

Go

rgon T2

Go

rgon T3

Ichth

ys T1

Sab

ine P

ass T3

Sen

gkan

g LNG

Whe

atstone

T1

Cam

ero

n LN

G T1

Cam

ero

on

Go

FLNG

Co

ve Poin

t T1

Ichth

ys T2

Pre

lud

e FLNG

Sab

ine P

ass T4

Whe

atstone

T2

Elba

Island

Yam

al T1

Cam

ero

n T2

Cam

ero

n T3

Co

rpu

s Ch

risti T1

Free

po

rt T1

Free

po

rt T2

Sab

ine P

ass T5

Yam

al T2

Co

rpu

s Ch

risti T2

Free

po

rt Train T

3

Yam

al T3

Tanggu

h T3

Petro

na

s FLNG

2

Mill

ion

to

nn

es

pe

r a

nn

um

Mill

ion

to

nn

es

pe

r a

nn

um

2016 2017 2018 2019 2020 Cumulative (Right hand axis)

An LNG Train Every Two Months On Average (2016-20)9

Source: Wood Mackenzie; Poten

~146 million tons per annum of new FID’d liquefaction production coming online 2016-20

All LNG facilities due to start up in 2016 came online during the year

New LNG Supply By Project Start Date

2016 Facilities Operational

Page 10: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

0

200

400

600

800

1,000

2016 2017 2018 2019 2020

Millio

n t

on

ne

s p

er

an

nu

m

Asia Pacific Europe North America South America Middle East & Africa LNG Supply

Increasing Re-Gasification Far Ahead Of New Supply10

LNG exports in 2016 totalled 266 million tons (+9% vs. 2015)

This is expected to rise to around 375-400mtpa by 2020, an increase of 40-50% vs. 2016

Global re-gasification capacity is expected to be 2.5x LNG production in 2020 (2.2x excl. USA)

Annual re-gasification build out coming from onshore and offshore (FSRU) facilities

Source: Wood Mackenzie; Poten

LNG Supply expected to rise 40-50% vs. 2016

Page 11: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

0

10

20

30

40

50

60

70

2006 2016 2026

Nu

mb

er

of

LN

G I

mp

ort

ing

Na

tio

ns

Number of LNG Importing Nations

Number Of Importers Expected To Rise Sharply11

LNG is becoming an increasingly attractive alternative to coal and oil (climate/emissions targets)

Significant increases in LNG demand from China (+40%) and India (+29%) in 2016

New importers in the last 2 years include Poland, Lithuania, Pakistan, Jordan, Egypt, Columbia

Expected importers in the near future include Bahrain, Jamaica, South Africa, Bangladesh etc.

Source: Wood Mackenzie; Poten

Already Identified

Risked potential

Page 12: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

12

LITHUANIAKlaipeda (Hoegh)

UKRAINEOdessa

ISRAELHadra-buoy (Excelerate)

LEBANON

JORDANAqaba (Golar)

MALTA

ITALYLivorno (OLT)TritonFalconara

TURKEY

UKP Meridian-buoy

CANARY ISLANDS

BENIN

KENYA

SOUTH AFRICASaldhana BayRichards Bay

BRAZILPecem VT2 (Golar)Bahia Salvador VT1 (Golar)Guanabara Bay VT3 (Excelerate)

BRAZIL

CHILEMejillonesOctopus LNG (Hoegh) URUGUAY

Montevideo (MOL)

ARGENTINAEscobar (Excelerate)Bahia Blanca (Excelerate)

COLUMBIACartagena (Hoegh)

ARUBA

DOMINICAN REPUBLICSan Pedro de Macoris

PUERTO RICOAguirre

EL SALVADOR

PANAMA

JAMAICA

USANE Gateway-buoys (Excelerate)

MYANMAR

KUWAITAhmadi (Golar)

BAHRAINUAEDusup (Golar)Dusup (Excelerate)

PAKISTANPort Kasim (Excelerate)Port Kasim 2Port Kasim 3

INDIAJagradDigha

Kakinada Gangavaram

Ennore/ChennaiSRI LANKAHambantota

BANGLADESHMaheskhali x 2

CHINATianjin (Hoegh)

China 1China 2

PHILIPPINESTabangao Batangas Bay

MarivelesVIETNAMSon Mai

THAILAND

MARTINQUE/GUADELOUPE

GHANATema (Golar)G1000

MALAYSIAMelaka JRU (Petronas)

LNG floating terminals

In Operation Under Construction Planned or possible

EGYPTAin Sokhna x 2(Hoegh, BW Gas)

SENEGAL

MAURITIUS

IVORY COAST

NAMIBIA

INDONESIALampung (Hoegh)Jakarta Bay (Golar)Java 1CiilacapJava SaipemSmall Scale (9 or more)

GREECEAlexandroupolisCrete

HAWAII

KALININGRADGazprom

CROATIA

SINGAPORE

HONG KONG

Floating Storage And Regasification Units (“FSRUs”) To Open Up New Markets

Page 13: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

0.0

4.0

8.0

12.0

16.0

20.0

MiddleEast

Africa Europe Americas Asia PacificM

illio

n t

on

ne

s p

er

ann

um

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Supplydiversification

Reduce reliance onoil

Indigenousproduction

replacement

Mill

ion

to

nn

es

pe

r an

nu

m

FSRU: A Key Enabler For Emerging Market Demand13

New LNG Importers By 2025 – Demand By Key Driver New LNG Importers By 2025 – Demand By Region

7 markets

18markets

7 markets

27 markets

3markets

7markets

47markets

8markets

Source: Wood Mackenzie,

Wood Mackenzie predicts up to 60 additional LNG importing nations by 2025 (~35 importing nations in 2016)

Page 14: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys
Page 15: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

Shipping Is Adapting To The Changing LNG Environment15

Ton Time and Ton Mile Considerations4

LNG Shipping Spot Market A Greater Part Of The Market3

New Technology Driving Greater Efficiency1

Minimal New Orders Should Lead To A Tight Market2

New Sellers/Buyers/Routes Creating Opportunities5

Page 16: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

0

50

100

150

200

250

300

Dec-70 Dec-75 Dec-80 Dec-85 Dec-90 Dec-95 Dec-00 Dec-05 Dec-10 Dec-15 Dec-20

Cap

acit

y (c

bm

)

Delivery Date

Global Fleet (excl. GasLog) GasLog Fleet

Global Fleet Evolving With New Technology16

Source: Wood Mackenzie, Company information

Ship technology continues to evolve with vessels increasing in size and becoming more efficient with lower boil off

Major technological advancements since 2000 (steam / modern steam / TFDE / MEGI / XDF)

A number of older vessels have been scrapped (8 vessels in 2014-16) or put into layup

“First Generation” Steam VesselsBuilt pre-2000

Global LNG Fleet Including Firm Newbuild Order Pipeline

Page 17: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

54

28

40

66

21

50

20

40

60

80

2011 2012 2013 2014 2015 2016

Nu

mb

er

of o

rde

rs

New Vessel Orders At Multi-Year Low17

Source: Poten

Only five new LNG carrier orders placed in the last 16 months

– All by established LNG shipping players

LNG vessels take 2.5 – 3.0 years to build

– An order placed now would likely deliver in the second half of 2019

FiveNew LNG

Carrier OrdersSep 15 – Jan 17

LNG Carrier New Orders Placed(1)

Page 18: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

4

5

6

1

2

47

10

21

1

3

1

1

1

11

US Volumes Expanding Ton Miles And Ton Time18

Source: Poten

Over 50 shipments have been made from Cheniere’s Sabine Pass terminal since start-up in 2016

These cargoes have been shipped to 17 different countries in total

Earlier cargoes tended to go into South America and Europe. Recently most cargoes have gone to Far East/India

Voyages have not always taken the most “efficient” route, increasing ton mile and ton time demand

The number of cargoes imported in each country is highlighted

Page 19: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

Inter-Basin Arbitrage Driving Shipping Demand19

Source: Factset

Spot Hub Gas Pricing (Last 12 months) Spot Hub Gas Pricing Arbitrage (Last 12 months)

$0

$10

$20

$30

$40

$50

$60

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9Ja

n-16

Feb-

16

Ma

r-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-16

Sep-

16

Oct

-16

No

v-1

6

De

c-16

Jan-

17

Bre

nt O

il P

rice

$/b

bl

Ga

s Pr

ice

($/

mm

btu)

JKM LNG UK Nat Gas NBP

Henry Hub Brent Crude

$0

$1

$2

$3

$4

$5

$6

Jan

-16

Feb

-16

Mar

-16

Ap

r-16

Ma

y-1

6

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-16

Dec

-16

Jan

-17

Ga

s Pr

ice

Arb

itra

ge (

$/m

mb

tu)

JKM vs Henry Hub NBP vs Henry Hub

JKM vs NBP

Platts quote Feb17 JKM delivery of $9.75/mmbtu, giving a spread over HHub of more than $6.00

Liquefaction + Shipping + Re-gasification to Asia = $4.00 – $5.00/mmbtu (these are often sunk costs)

Recent US exports have gone to Asia (Japan, China, Korea) and India taking advantage of the arbitrage

Page 20: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys
Page 21: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

The LNG shipping spot market has continued to evolve as more spot cargoes become available

Approximately 275 LNG shipping spot fixtures in 2016

– An increase of 53% over 2015 (173 fixtures) and 88% over 2014 (146 fixtures)

~40 different charterers active in the spot market in 2016

– O&G majors, traders, and LNG projects have all been participants

GasLog set up “The Cool Pool” alongside Dynagas and Golar LNG

– The first LNG shipping pool in operation

– Unique ability to attract spot charters due to the ability to fix ships with forward start dates, offering greater flexibility to customers

The LNG Spot Market Is Growing And Evolving21

Selected Cool Pool Customers

Page 22: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys
Page 23: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys

LNG Shipping Sector: Full Steam Ahead23

Lack Of New Orders Should Lead To Further Rate Tightness4

Destination Flexibility And Arb Helping Ton Time/Miles3

Rising Exports Will Lead To Greater Shipping Demand1

Additional Demand Stimulated By Increased FSRU Usage2

Potential Shortfall Of 35-40 Vessels By 2020(1)5

1. Source: Poten

Page 24: LNG: A Changing Market · Petronas FLNG 1 Sabine PassT2 Gorgon T2 Gorgon T3 Ichthys T1 Sabine Pass T3 Sengkang LNG Wheatstone T1 Cameron LNG T1 Cameroon GoFLNG Cove Point T1 Ichthys