Atlantic LNG: Global Benchmark by 2013

World Energy Trends

44%Projected increase in

world marketed energy consumption

Average annual

increaseTotal World: 2%

OECD: 1%

Non OECD: 3%

South America: 2.8%

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

World Energy Trends

Energy Consumption by Fuel, 1980-2030(quadrillion Btu)

0

10

20

30

40

50

1980 1990 2000 2005 2010 2020 2030

Natural Gas

Liquids

Nuclear

Coal

Nonhydro renewablesHydropower

ProjectionsHistory

Biggest increase in usage is expected in Power Generation

World Energy Trends

• Fossil fuels forecasted to play important role

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

• Natural Gas will remain an attractive option for power generation

World Electricity Generation

Pollutant Natural Gas Oil CoalCarbon Dioxide 117,000 164,000 208,000Carbon Monoxide 40 33 208Nitrogen Oxides 92 448 457Sulfur Dioxide 1 1,122 2,591Particulates 7 84 2,744

Mercury 0.000 0.007 0.016

Source: EIA - Natural Gas Issues and Trends 1998

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

Natural Gas: environmentally friendly

• 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 market

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

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

Natural Gas: economical option

Energy Prices 2004-2018

0

2

4

6

8

10

12

14

16

1820

04

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Year

$/m

mbt

u Brent

Nymex HH

Source http://www.cmegroup.com/

Actual and forecasted energy prices

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

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

• Natural gas pipeline infrastructure is in place in the region, but concerns about supply security have prompted development of LNG regasification terminals

Natural Gas in South America

• 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 2013

South America LNG Imports

• Chile: – 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.

– 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 (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.

South America LNG Imports

• Energy mix similar to that of Brazil

• Currently self-sufficient in natural gas and an exporter of natural gas to Venezuela

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

• Energy usage forecasted to increase

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

Natural Gas in Colombia

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

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

• Fixed– Gravity based structures– Offshore Platforms– Artificial Offshore islands

• Floating– FSRU (Floating Storage Regasification

Unit)– Floating Regasification Unit (no storage)

LNG Regasification

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

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

– Mitigates environmental and safety concerns around onshore regasification facilities.

LNG Regasification

Golar Spirit

- 129,000 m3

storage

- 2.5bcm/year

LNG Regasification: FSRU example

Golar Winter

- 138,000 m3

storage

- 5.1 bcm/year

LNG Regasification: FSRU example

• Stability of Supply– LNG helps diversify supply base and

increase reliability. – Past supply challenges:

• Jan 2006 – Russian Gazprom cutting off pipeline natural gas supplies to Ukraine

• Jan 2008 - Turkmenistan cut gas exports to Iran resulting in Iran cutting exports to Turkey. Subsequently, Gazprom increased natural gas exports to Turkey.

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

LNG: a good strategic supply option

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 15.4Brunei Brunei LNG 5 7.2

Damietta 1 4.8Egyptian LNG 2 7.2

Darwin 1 3NW Shelf LNG 5 16.5

Equatorial 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 25.3RasGas 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

Indonesia 36.4

Australia

Qatar

Egypt 12

19.5

53.8

Country Project Name# of

Trains Capacity

(mt/y)Timeframe

Angola Angola LNG 1 5.2 2012Australia Pluto LNG 1 4.3 2011Australia Gorgon LNG 3 15 2014

Iran Iran (NIOC) LNG 2 10.8 2011

Norway Nordic LNG 1 0.3 2010Peru Peru LNG 1 4.4 2010

QatarQatar Gas &

RasGas3 23.4 2010

LNG Plants coming on stream

Country Project Name# of

Trains Capacity

(mt/y)Timeframe

Indonesia Abadi 3 8.5

Australia

Abadi LNGAustralia Pacific LCSG (LNG)BonparteFisherman's LandingGladstone-Santos LCSGGladstone-Shell LCSGIchthys LNGSunrise LNGWheatstone LNGQueensland Curtis LCSGScarborough LNGBrowse LNG

23 47.2

Nigeria Brass LNG 11 30.4Venezuela Delta Caribe 1 4.7

Canada Kitimat LNGPapua New

GuineaLiquid Niugini 3 19.8

Iran Pars LNG 2 5Russia Shtokman LNG 2 7.5

Planned LNG Projects

Planned LNG Projects

• Argentina • Bahamas• Bahrain• Bangladesh• Brazil• Canada• Chile• China• Croatia• Cyprus

• Dubai• Estonia• France• Germany• India• Indonesia• Ireland• Israel• Italy• Jamaica

• Japan• Korea• Kuwait• Malaysia• Mexico• Netherlands• Pakistan• Panama• Phillipines• Poland

• Romania• Singapore• South Africa• Sweden• Thailand• United Kingdom• United States• Uruguay

39 Countries propose LNG Import Terminals• Only 22 countries currently import LNG• The number of LNG importers may double this decade

Atlantic LNG is the best option for Latin

American supply

Introducing Atlantic LNG

• World’s 7th largest LNG

production capacity• Largest supplier of LNG

imported by US• Largest single contributor

to T&T local exports• High contributor to T&T

local GDP

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

inflection point• A significant role in Atlantic

arbitrage• A secure source of LNG to

global markets• 1800 cargoes to date

Who we are

Where we are located• Plant Facility located in Point Fortin,

South West coast of Trinidad and Tobago

• 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 Gas

Where we are located

BP BG Repsol YPF

Suez / GDF

NGC

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

Train 2/3

42.5% 32.5% 25%

Train 4 37.78% 28.89% 22.22% 11.11%

Each Train, different owners

Train Specifications

Train 1 Train 2/3 Train 4

1st loading Apr 30, 1999 Aug 12, 2002 & Apr 28, 2003

Dec 15, 2005

Construction Cost (USD)

965m 1.1b 1.2b

Capacity 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

• 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

residue. – 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 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

About our product

Liquefaction

and

Refrigeration

InletSeparation

& Metering

Acid GasRemoval

DehydrationMercury

Removal

LNG Storageand

Loading

Fuel System

Boil-OffGas

FEED PRETREATMENT

NGLRecovery

Regeneration Gas

FeedGasfrom

Pipeline

CO2

Fuel Gas

From Natural Gas to LNG

East Coast Gas Supply

40”

Caribbean Sea

Columbus Channel

GaleotaPoint

Banyan

Trinidad

Poui

Immortelle

Flamboyant

Cassia

Tobago

Atlantic Ocean

Mahogany

Amherstia

Pt. Fortin

Pt. Lisas

30”Beachfield

AbyssiniaPicton

Port-Of-Spain

San-FernandoDolphin

Sparrow, Parangand Renegade

Block 5ABG/Texaco

Gulfof

Paria

36”& 56”

Piarco Airport

36”& 56”

Cannonball

24” BG natural gas line

0 50 km

Venezuela

Trinidad

Tobago

C a r i b b e a n

S e aPort of Spain

Point Fortin

(LNG)

Penal

Point Lisas

Venezuela

North Coast Gas Supply

DAB

IrisOrchidPoinsettia

Chaconia

Hibiscus

24”

(To be inserted: world map

showing our buyers’ destinations)

1 2 345

6

9

10

Where our LNG goes

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

Global Liquefaction Capex ($/tpa)

Source: Poten & Partners, BG

0

1998 2002 2006 2010

Start up year

200

400

600

800

1000Greenfield projects

Expansion projects

ALNG 1ALNG 2/3

ALNG 4

Our Corporate Strategy

• Track record for delivery– Safely delivered over 1800 cargoes– Largest supplier of imported LNG to USA.– 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.• Geography

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

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

Some Atlantic Facts

Shipping Data (North Coast of Colombia)

Destination SourceDistance

(Nautical Miles)Transit(days)

Est. Ship Cost

($/MMBtu)Colombia Trinidad 905 2 $0,10 Colombia 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

Some Atlantic Facts

• 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 can be sourced through this avenue (as was done in the case of shipments to Chile, Argentina and Brazil).

Atlantic as a source of supply

• 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 demand.

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

• LNG is a secure source of Natural Gas which can be imported from many global suppliers.

Conclusion

• 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.

• Floating Regasification can offer timely economical means of accessing LNG

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

Conclusion (contd.)

Atlantic LNG: Global Benchmark by 2013