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Disclaimer
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This presentation and the information herein contained is Gas Natural Fenosa (“GNF”)property.Although GNF has taken all reasonable care to ensure that the information herein is accurateand correct, no representation, warranty or undertaking, express or implied, is given by or onbehalf of GNF or any other person as to, and no reliance should be placed on, the fairness,accuracy, completeness or correctness of the information or the opinions contained herein orany other material discussed at the presentation. This presentation may include forward-looking statements that reflect GNF's intentions, beliefs or current expectations, Suchstatements are made on the basis of assumptions and expectations that GNF currently believesare reasonable, but could prove to be wrong. Any forward-looking statements made by or onbehalf of the Company speak only as at the date of this presentation
©Copyright Gas Natural SDG, S.A.
Gas Natural FenosaThe Gas Natural Fenosa Group
1. Figures 31/12/15
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customers in the world
23 MAround
countries30
Presence in more than
employees
19.9391
The largest integrated
gas andelectricity company
in Spain and Latin America
A multinational company,
leader in the sector of
Gas and Electricity through a
Balanced business model
1 – Figures 31/12/2015
EBITDA
€5.264 M1
Total assets
€48.132 M1
Installed Capacity
15.471 MW
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Gas Natural FenosaThe Gas Natural Fenosa Group
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Gas Natural FenosaGNF position in the gas supply chain
• GNF has participation in the liquefaction plant of Damietta (Egypt) and Qalhat (Oman)
• 7 carriers in operation
+
• 4 carriers under construction
• Diversified and flexible portfolio of supply with 30 bcma contracted from T&T, Nigeria, Egypt, Oman, Qatar, USA, Russia, Algeria and Azerbaijan
• Participation in regasificationplants:
•Sagunto and Reganosa(Spain)
•Ecoeléctrica(Puerto Rico)
• Access capacity in Montoir(France) and in all regasificationterminals in Spain
• Transport: Maghreb-Europapipeline
• Pipeline distribution network: 120,000 km in Spain, Italy, Brazil, Argentina, Colombia, Mexico and Chile
• LNG sales of 12 bcma over long, medium and short term contracts
MarketingTransport
& DistributionRegasificationShippingMidstreamLiquefactionUpstream
• GNF is present in stable markets (Spain)
Natural Gas (GN)
● GN contracts from Norway, Algeria and Azerbaijan
● Dedicated to markets connected to the pipeline
GN: NorwayGN: Norway
GN AlgeriaGN Algeria
GN: AzerbaijanGN: Azerbaijan
LNG: Yamal3.2 bcma
LNG: Yamal3.2 bcma
LNG: NigeriaLNG: Nigeria
LNG: QatarLNG: Qatar
LNG: Sabine Pass T25 bcma
LNG: Sabine Pass T25 bcma
LNG: Corpus Christi T22.1 bcma
LNG: Corpus Christi T22.1 bcma
LNG: Trinidad &
Tobago
LNG: Trinidad &
Tobago
LNG
● More than 22 bcma from different sources
● Large flexibility to supply different markets worldwide
The company has a LNG and natural gas supply portfolio of around 30 bcmfrom reliable and diversified sources of supply
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Gas Natural FenosaLiquefaction and Supply (Midstream)
... plus 4 vessels of 176.000m3 chartered to attend Sabine Pass GNF’s Contract... plus 4 vessels of 176.000m3 chartered to attend Sabine Pass GNF’s Contract
A current portfolio of 7 vessels…A current portfolio of 7 vessels…
Cadiz Knutsen138.000 m3
Catalunya Spirit138.000 m3
Castillo de Villalba138.000 m3
Ibérica Knutsen138.000 m3
Ribera del Duero Knutsen
173.000 m3º
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Gas Natural FenosaShipping capacity
Gaslog Saratoga155.000 m3
Seishu Maru155.000 m3
Puerto Rico: Participation in
Regasification Terminal
Puerto Rico: Participation in
Regasification Terminal
LNG globally marketed through medium/long term contracts
France (Montoir): Regasification
Capacity
France (Montoir): Regasification
Capacity
Spain: - Participation in 2 Regas.
Terminals- Regas capcity in all regas
terminals
Spain: - Participation in 2 Regas.
Terminals- Regas capcity in all regas
terminals
Current LNG route
Future LNG route
LNG Delivery Point
LNG Supply Source
Large experience in the downstream markets.GNF is one of the main
players of gas sales worldwide.
Its active management of long term sale contracts
and spot contracts ensures optimized and secured
supplies
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Gas Natural FenosaGNF’s regasification terminals and markets
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LNG MarketsLNG Value Chain
Tra
ns
po
rtU
nlo
ad
ing
an
d s
tora
ge
term
ina
l
Fin
al
Cu
sto
me
rs
Ga
s D
istr
ibu
tio
n
Liquefaction Plant LNG Carrier
Regas terminal (on-shore/ FSRU)
Truck loading terminal
Tank truck
LNG Satellites plant
Pipeline
Power Plant Households Industry
Sm
all S
cale
LN
Gap
plicati
on
LNG MarketsWorld Primary Energy
Source: BP, 2014Oil (+other liquids) includes biofuels, gas-to-liquids (GTL) y coal-to-liquids (CTL).
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Crudo
Carbón
Gas natural
Renovables
Nuclear
Hidráulica
1990
21,7%
2035
26%
Electricity Generation MixWorld Primary Energy
The natural gas is the sole fossil fuel with growth projections in the upcoming decades
The natural gas is the sole fossil fuel with growth projections in the upcoming decades
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LNG Markets
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World gas natural demand
Unit: bcmaSource: GNF’s analysis based on “BP Statistical Review of world energy 2015” and “BP Energy Outlook 2035“(2015).
Expected growth in the consumption of natural gas of 624 bcm from 2013 to 2020
848
Pacific Asia
2013 2020
572
43,7%
838 929
North America
2013 2020
14,5%
Latam
2013 2020
152 179
4,3%
958 1.007
Europe & Eurasia
2013 2020
7,9%
Middle East
2013 2020
386 536
24,1%
Africa
2013 2020
111 145
5,5%
LNG MarketsEvolution of the consumption of LNG and natural gas in the world
Evolution of total demand of natural gas
Fuente: Woodmackenzie
10%
90%
16%
84%
2014
2035
% LNG mix of natural gas demand
% GN of total gas demand % LNG of total gas demand
0
500
1000
1500
2000
2500
3000
3500
1990 1995 2000 2005 2010 2013 2015
Bcm
Total demand of natural gas
The increased consumption of LNG will lead to a more interconnected and globalized gas market
The increased consumption of LNG will lead to a more interconnected and globalized gas market
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LNG Markets
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LNG Supply Facilities
Source: GNF’s analysis based on Woodmackenzie reports.
KenaiKenai
Perú LNGPerú LNG
On-StreamOn-Stream
Atlantic LNG 1Atlantic LNG 1Atlantic LNG 2 &3Atlantic LNG 2 &3Atlantic LNG 4Atlantic LNG 4
NLNG BaseNLNG BaseNLNG ExpansionNLNG ExpansionNLNG PlusNLNG PlusNLNG 6NLNG 6
ArzewArzewBethiouaBethiouaSkikdaSkikda
Marsa El BregaMarsa El Brega
EG LNGEG LNG
Angola LNGAngola LNG
Yemen LNGYemen LNG
DamiettaDamiettaELNG 1ELNG 1ELNG 2ELNG 2
SnohvitSnohvit
Qatargas-1Qatargas-1Qatargas-2Qatargas-2Qatargas-3Qatargas-3Qatargas-4Qatargas-4Rasgas IRasgas IRasgas IIRasgas IIRL - 3RL - 3
ADGASADGAS
OLNGOLNGQalhatQalhat
Sakhalin 2Sakhalin 2
ArunArunBruneiBrunei
BontangBontang
TangguhTangguh
PNG LNGPNG LNGMLNGMLNGMLNG DuaMLNG DuaMLNG TigaMLNG TigaMLNG Train 9MLNG Train 9
Under constructionUnder construction
Petronas FLNG 1Petronas FLNG 1
PlutoPlutoNorth West ShelfNorth West ShelfGorgonGorgonWheatstoneWheatstonePrelude FLNGPrelude FLNG
Petronas FLNG 2Petronas FLNG 2
DS LNGDS LNG
IchthysIchthysDarwinDarwin
GLNGGLNG
QLNGQLNGAPLNGAPLNG
CameronCameron
Sabine Pass Trains 1-5Sabine Pass Trains 1-5Freeport Trains 1-3Freeport Trains 1-3Corpus ChristiCorpus Christi
Cove PointCove Point
La Creciente FLNGLa Creciente FLNG
Yamal LNGYamal LNG
LNG Markets
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Current situation
0
100
200
300
400
500
600
700
800
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Operational Under Construction
Probable Development Possible
Speculative LNG demand
Liquefaction Capacity vs LNG Demand
Source: Compilated based on Woodmackenzie data.
Price conditions for consumers would be very favourable in the coming years thanks to a reduced demand grow and the LNG avalaibility
Source: OIES with Platts, EIA, Argus CME
LNG price evolution
LNG Markets
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Fuel Competition
Natural Gas in Asia grows less than other types of
energy
Primary consumption energy in selected LNG importing countries
Source: BP Statistical Review of World Energy 2015
Source: IEA Outlook 2014
LNG Markets
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LNG / Natural gas prospects
� Long term factors
�New LNG Importing countries as Egypt, Pakistan, Israel, Jordan and private
Chinese buyers
�New supplies and discoveries
�Alternative uses of Natural Gas/LNG as transportation
�New technology, as FNLG, can lower the upstream costs of LNG
�LNG contribution to the Security of Supply
�Short term factors
�Current level of prices can deter the investment of new supplies leading to a
“boom & bust cycle” and a new tight period
Security of SupplyFukushima example
LNG Markets helped Japan to cope with the nuclear collapse after the 2011 tsunami. Many cargoes were re-
routed to Japan responding to the high prices
LNG Markets helped Japan to cope with the nuclear collapse after the 2011 tsunami. Many cargoes were re-
routed to Japan responding to the high prices
62.19
7.35
4.70
1.06
0.29
0.17
63.91
60
62
64
66
68
70
Q1 2011 Asia Europe North AmericaLatin America Middle East Q1 2012
mmtons Global LNG Imports: Q1 2012 vs. Q1 2011
Source: Waterborne LNG, US Department of Energy, PFC Energy
Global LNG Imports: Q1 2012 vs Q1 2011 Japan fuel consumption for electricity generation
Source: The Fukushima nuclear accident and its effect on global energy security , Energy Policy 59, 2013
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GNF’s portfolio has a wide spread of alternatives that can be combined to fit each singular client
GNF’s portfolio has a wide spread of alternatives that can be combined to fit each singular client
Quality Robust portfolio providing a wide range of quality alternatives to fulfill the requirements of each end user Robust portfolio providing a wide range of quality alternatives to fulfill the requirements of each end user
Fleet
Volume
Indexation
Term
Extensive shipping fleet in terms of number of vessels and sizeExtensive shipping fleet in terms of number of vessels and size
Leveraging its ability to aggregate demand across different markets, GNF can cater to end users’ consumption profileLeveraging its ability to aggregate demand across different markets, GNF can cater to end users’ consumption profile
Portfolio player that can provide the indexation that is best suited for each individual client (HH, Brent, Gas Oil, Fuel Oil)Portfolio player that can provide the indexation that is best suited for each individual client (HH, Brent, Gas Oil, Fuel Oil)
Active in both trading and marketing activities, GNF is able to tailor contracts for spot, mid term, and long term purchasesActive in both trading and marketing activities, GNF is able to tailor contracts for spot, mid term, and long term purchases
FlexibilityIts broad portfolio of supply contracts and logistical capabilities allow GNF to provide flexibility to end usersIts broad portfolio of supply contracts and logistical capabilities allow GNF to provide flexibility to end users
GNF in its LNG supplier role
GNF is committed to providing its customers with the most effective solution possible
GNF is committed to providing its customers with the most effective solution possible
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Flexibility
Start of deliveries in connection with the development of
infrastructures
Ramp up: Increase delivered quantities
Competitiveness
Supply from Atlantic Basin sources
The best positioning in the Atlantic: delivery
optimization
Price indexation
Security of Supply
Diversified portfolio
Large experience: Spain, Portugal, Puerto Rico and
Argentina.
One of the largest LNG fleet in the world
GNF and its suppliers roleAdvantages provided by GNF
Small Scale LNG applicationsDistribution by trucks / LNG satellite plants
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LNG can be transported by trucks to Satellite LNG Plants or industrial clients
LNG can be transported by trucks to Satellite LNG Plants or industrial clients
Small Scale LNG applicationsAdvantages
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�They allow to transport the gas natural to anywhere in the country withoutinvesting in pipeline network
�They allow to transport the gas natural to anywhere in the country withoutinvesting in pipeline network
�They do not require large investments and it has very competitiveoperating/maintenance costs
�They do not require large investments and it has very competitiveoperating/maintenance costs
�Creates natural gas demand before the development of large gas infrastructurein the region
�Creates natural gas demand before the development of large gas infrastructurein the region
�Technologies tested and proved in mature markets (Spain)�Technologies tested and proved in mature markets (Spain)
�They are used, and they are still implemented by GNF in the gasification
model in Spain
�They are used, and they are still implemented by GNF in the gasification
model in Spain
Small Scale LNG applicationsAdvantages
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�Its development and implementation allows an important growth vector indifferent sectors
�Its development and implementation allows an important growth vector indifferent sectors
�With applications in all sectors of economic activity: industrial / agriculture /services / residential / vehicle / power generation, regardless of their location
�With applications in all sectors of economic activity: industrial / agriculture /services / residential / vehicle / power generation, regardless of their location
�Main mechanism for the development of generation projects (electricity forthermal energy / industrial cooling)
�Main mechanism for the development of generation projects (electricity forthermal energy / industrial cooling)
�GNF has a large experience in the construction and operation of
LNG satellite plants
�GNF has a large experience in the construction and operation of
LNG satellite plants
�This model has been exported to other countries in Europe:
France, Italy, Germany, Belgium, Holland
�This model has been exported to other countries in Europe:
France, Italy, Germany, Belgium, Holland
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Portfolio of supply FleetInfrastructure &
Markets
GNF has a secured LNG supply in the long term through:
A diversified sources and supply,a flexible fleet portfolio and
a selected positioning in final markets
Security of SupplyThree key axes
Geographical diversification with different counterparts, duration, volume, qualities
and flexibility
Technical capability with different sizes of carriers that allows GNF to deliver LNG in
the most favorable conditions to all the markets
Position in the final markets with access capacity in the
most important entry infrastructures