LNG TERMINALS TRENDS AND DEVELOPMENTS Vincent Demoury, General Delegate

LONDON – 28/NOV/2019

LNG SHIP/SHORE INTERFACE CONFERENCE 2

Promoting cooperationbetween leadingplayers in the LNG industry

GIIGNL88 Members in 26 countries – LNG importers and LNG terminal owners and operators

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LNG IMPORT GROWTH ACCELERATINGLNG trade has grown consistently and more LNG flows into the world

Source: GIIGNL, Kpler

220241 236 237 239 245

264290

314

296

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

LNG imports 2010-2019 (MT)

?

260 (10 months)

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US AND YAMAL ADD LIQUIDITYUS exported 27 MT of LNG to 30 countries, Yamal did 15 MT to 19 countries (first 10 months)

6.8 MT (25%)to Americas

2.0 MT (13%) to Asia

0.6 MT (4%)to Middle East

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REGASIFICATION TERMINALS IN 20197 new terminals were commissioned, adding a combined 13 MTPA of new regasification capacity

Regasification Capacity881 MTPA

(vs. 868 MTPA in 2018)

Kaliningrad FSRU (2.7 MTPA, Gazprom) Fangchenggang (0.6 MTPA, CNOOC)Shenzhen Gas (0.8 MTPA, Shenzhen Gas Co.)

Summit LNG FSRU (3.8 MTPA, Summit Group)

Ennore (5.0 MTPA, IndianOil LNG)

Bahrain FSU (6.1 MTPA, Teekay)

Mundra (5.0 MTPA, GSPC LNG)

Jaigarh FSRU (5.0 MTPA, H-Energy)

Gibraltar LNG (Shell)

Jeju (0.4 MTPA, KOGAS)

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Asian countries such as China, India, Taiwan and Pakistan need more capacityEUROPEAN TERMINALS ARE BUSIER IN 2019

(MTPA)

Global Average in 2018: 36.2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

50

100

150

200

250

300

350

400

450

500

AMERICAS ASIA EUROPE MIDDLE EAST

LNG import terminal utilization rate in 2019 (First 10 months)

Send-out CapacityLNG import (First 10 months)

Utilization Rate 2019Utilization Rate 2018

Global Average in 2017: 34.1%Global Average in 2016: 31.8%

Global Average in 2019: 40.3%

Source: GIIGNL, Kpler

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DIVERSIFYING NATURAL GAS SOURCESBut European dependence on Russian gas is remaining due to the increasing LNG imports from Yamal LNG

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LNG TO PLAY KEY ROLE IN POWERFinancing and infrastructure development challenges remain

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FSRU: FAST AND FLEXIBLE OPTIONOffshore facilities account for 46% of total send-out capacities newly added from 2015 to 2018

Onshore Offshore Share of Offshore facilities

3,2%

11,4%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

18,0%

20,0%

0

100

200

300

400

500

600

700

800

900

1 000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Cumulative regasification send-out capacity(MTPA)

EXPANDING ACCESS TO LNG VIA TRUCKS LNG terminals will be a regional focal point for the clean energy but volumes remain marginal

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25,8

112,2

0,153,4 30,8

116,3

664,3

26,40

100

200

300

400

500

600

700

800

Europe(1,000 tonnes)

14 040

46 2,9 1,43 181,30

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Asia (1,000 tonnes)

250,8

104,182,2

0

50

100

150

200

250

300

Americas(1,000 tonnes)

2017

2018

NEW AREAS FOR LNG TERMINALSMany terminals provide various LNG-related services and expanding their areas to new business

• In last 3 to 5 years, many European terminals have added various services such as LNG storage, Reloading, Transshipment, Truck loading, Cooling down in addition to their traditional services.

• Truck-to-Ship LNG bunkering operations take place in the ports of Belgium, France, Germany, Japan, Netherlands, South Korea, Spain, UK.

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Source: KOGAS, Tokyo Gas

Truck-to-Ship LNG bunkering for ECONURI by KOGAS at Incheon port

Truck-to-Ship LNG bunkering for Sakigake by Tokyo Gas at Yokohama port

Guidelines for Reloading, GIIGNL

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LATEST DEVELOPMENTS IN EUROPEOperators continue upgrading their terminal for services such as truck loading, bunkering and transshipment

Dunkerque LNG- Truck loading bay completed(3,000 trucks per year)- Works to adapt the jetty for small vessels from 5,000 m3

Elengy- 2nd truck loading bay in Fos Tonkin & new station with 2 loading bays at Fos Cavaou- Jetty for small vessels from 5,000 m3 at Fos Cavaou

Fluxys- Additional compressor and a 5th storage tank for transhipment- Two truck loading stations in parallel in Zeebrugge- Constructing an LNG bunkering pontoon for the Antwerp port

Gate- Truck-loading facility incorporating 3 loading bays- Third Jetty for small vessels

with a capacity from 1,000 m3

- ship loading flow rate increased from 2300 m3/hour to 4000 m3/hour

Polskie LNG- Expansion program inc. LNG-to-rail transhipment installation and additional jetty for SS-LNG

CONCLUSIONS

• Additional LNG import infrastructure still needed in many parts of the world

• LNG terminals will be a focal point for future energy systems by re-distributing LNG via small-scale vessels or LNG tanker trucks

• Terminal operators are expanding their businesses beyond their traditional role to LNG related services

• Decarbonizing strategies will be key for the sustainability of operations

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THANK YOU

LNG SHIP/SHORE INTERFACE CONFERENCE