An Exporters Perspective Kathleen Eisbrenner CEO, Pangea LNG B.V. - - PowerPoint PPT Presentation

An Exporter’s Perspective

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Kathleen Eisbrenner

CEO, Pangea LNG B.V.

May 2013

8th Annual Global Energy Conference The World Turned Upside Down

Who is Pangea LNG?

 A developer of on-shore, off-shore and hybrid LNG liquefaction projects

• Pangea brings together a team that was responsible for generating the innovations that

are at the foundation of the floating LNG (FLNG) sector  Shareholders

• DSME, South Korea (Daewoo Shipbuilding and Marine Engineering)
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• D&H Solutions AS – Norwegian company developing stranded natural gas reserves

worldwide

• NextDecade International – An energy project development and management company;

includes a team with decades of experience in LNG  Active projects

• Eastern Mediterranean – Tamar Field, Off-shore FLNG
• North America – South Texas, San Patricio County
• East Africa – Off-shore Floating LNG

8th Annual Global Energy Conference The World Turned Upside Down Belgium France Greece Italy Japan Puerto Rico South Korea Spain Taiwan

A Precedent…The Past Decade

Taiwan Turkey United States

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2000 – Only 11 Countries Imported LNG (No Floating Regas) 2005 – First Floating Regasification Site (Gulf of Mexico)

History of Floating Regasification

CURRENT SITES

Argentina (2) Brazil (2) UAE (Dubai) Israel Indonesia (2) Kuwait United Kingdom United States (2)

POSSIBLE SITES

Bangladesh Bahrain Brazil (#3) Chile (2) China Dominican Republic 4

Current Sites Possible Sites

Dominican Republic Egypt Ghana India Indonesia (#3) Italy Jamaica Jordan Kuwait (#2) Lebanon Lithuania Malaysia Pakistan Puerto Rico South Africa Sri Lanka Ukraine UAE (Abu Dhabi) Uruguay Vietnam

2000 - 11 LNG Importing Countries (No Floating Regas) 2005 - First Floating Regasification Site (Gulf of Mexico) 2010 - 22 LNG Importing Countries 2013 - 12 Floating Regasification Sites 2015 - 40 or So Floating Regasification Sites

(Projected)

8th Annual Global Energy Conference The World Turned Upside Down

Floating Regasification Solutions

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Near Shore Offshore

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Relevance of New Markets and Floating Regasification Technology  New market alternatives are liquid fuels, priced at oil, fuel oil and diesel indices; Delivered LNG is price competitive  Floating regasification has demonstrated how quickly innovative technologies can be adopted and accepted by

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innovative technologies can be adopted and accepted by the LNG industry  Floating regasification has demonstrated reduced costs for floating solutions ~ $400 million vs. $1.2 billion for land-based equivalent  Optionality

8th Annual Global Energy Conference The World Turned Upside Down

Future LNG FIDs: Time for a New Model?

ON

40 50 60

$2,500 to $4,000/ton

Liquefaction Upstream

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$ BILLION

10 20 30

$2,500 to $4,000/ton $750 to $1,500/ton

Land Based Large Scale Offshore Mid-Scale Offshore/Nearshore

8th Annual Global Energy Conference The World Turned Upside Down

Vessel-Mounted Liquefaction Will Follow Regasification Growth Trend

Existing and Planned Floating LNG Projects

Floating Regasification Projects

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Floating Liquefaction Projects

8th Annual Global Energy Conference The World Turned Upside Down

Potential for Offshore Floating Liquefaction

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Potential for Near Shore FLNG

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8th Annual Global Energy Conference The World Turned Upside Down

Floating Liquefaction Projects – Announced

UNDER CONSTRUCTION OR UNDER DEVELOPMENT

United States (8) Columbia Brazil Israel Malaysia (2) Indonesia Timor Sea (3) 11 Timor Sea (3) Australia Papua New Guinea

2013

3 Ships Under Construction 16 Additional Under Development

8th Annual Global Energy Conference The World Turned Upside Down

Floating Liquefaction Projects – Future Positions

Eastern Mediterranean US Other Locations Eastern Canada Mozambique

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Mozambique West Africa

2015

Potential of at Least 5 Additional Projects

8th Annual Global Energy Conference The World Turned Upside Down

Pangea LNG Opportunities for Early Supply – Levant Basin

 Regional reserves likely to exceed 35 Tcf  Pipeline difficulties and limited domestic market challenge additional natural gas deliveries additional natural gas deliveries to shore  Multiple FLNG vessels provide cost effective solution for Eastern Med  BWO – Owner’s Engineer, preferred Operator and Owner

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8th Annual Global Energy Conference The World Turned Upside Down

United States Port of Corpus Christi

New York Houston Los Angeles

• 85 years history as an industrial

port dealing almost exclusively in bulk cargos

• 45 feet deep federal channels

with few vessel traffic conflicts

• A major petroleum port; the 6th

busiest US port in terms of

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Panama Canal Panama Canal

Corpus Christi Houston

busiest US port in terms of tonnage

• Home to 3 major refineries,

large petrochemical complexes, metals processors and offshore energy industry fabricators

• The primary outlet for Eagle

Ford shale oil production

8th Annual Global Energy Conference The World Turned Upside Down

Pangea LNG Opportunities for Early Supply – Exports from the United States

15 Source: EIA AEO 2013 Reference Case

Margin Potential

Thank You

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