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Imagination at work

LPG for power generation

June 8th, 2016Abuja, Nigeria

A GE-Vitol solution

2

Presenters today

GE Proprietary Information—Class II (Confidential)


Dr. Christoph Reimnitz

Global Structuring Leader

Gas to Power: Dev. & Investment

GE Global Growth & Operations

Guillaume Quiviger

Vitol Investment Group

Africa power development

LPG Growth and infrastructure

3

Today’s objectives



1. Introduce LPG & discuss its benefits as a fuel for powering

Nigeria’s industrial and commercial customers

2. Outline a turnkey GE-Vitol LPG power generation solution

4

Agenda



Why LPG?

GE-Vitol LPG power solution

Examples of LPG solutions

GE, Vitol at a glance

5


Power servicesGas power systems Steam power systemsBaden, Switzerland Baden, SwitzerlandSchenectady, NY, USA

Water/process techDistributed powerJenbach, Austria Trevose, PA, USA

GE Hitachi nuclearWilmington, NC, USA

Advanced reactor technologies

• ESBWR, ABWR, PRISM

• Outage and asset optimization

• Fuels, engineeringservices

• Generators and Steam Turbines

• Air Quality Control Systems (AQCS)

Optimizing plant performance

• Maintenance, repairs and outage solutions

• Multi-year service agreements

• Hardware/software upgrades solutions

High efficiency, scale power

• Power Plants (combined and simple cycle)

• Gas turbines

• Heat recovery steam generators

• Generators andcontrols

Advanced steam power expertise

• Recip. engines (0.2 to 10MW)

• Jenbacher, Waukesha brands

• Efficient, fuel flexible

• Natural gas and special gas

• Base load, peaking, CHP, oil field power

Power near and at the point of use

• Chemical and monitoring solutions

• Engineered systems

• Mobile water

• BOO services

Energy efficient water solutions

Steve Bolze, CEOSchenectady, NY

5

GE Power~$30B ‘14 revenue ~65,000 employees >120 countries



6

Vitol



390,000 bpd

In excess of 390,000 bpd refining capacity world wide. Refinery investments include; Viva Energy Australia; Geelong refinery, Varo Energy; Cressier in Switzerland and Bayernoil in Germany, ATPC in Belgium and FRCL in UAE.

1,240 MW

VPI Immingham – one of the cleanest and most efficient power plants in Europe with a capacity of c2.5% of UK peak demand.

18.1 million m3

18.1 million m3 storage:- 8.7 m m3 in VTTI

- 2.5 m m3 in

Blueknight

- 4.2 m m3 in Varo

Energy.

- 1.6 m m3 in Viva

Energy Australia

- 900 k m3 in Vivo

Energy.

- 159 k m3 in

Midstream

2,480+ outlets

Vitol’s marketing include bunkering, 5.5 million tonnes of jet into wing at 60 airports worldwide and Vivo Energy’s 1,600+ petrol stations across Africa. Viva Energy, Shell’s downstream business in Australia has added over 900 petrol stations.

20 years

Vitol has 20+ years experience in E&P managing projects across diverse geographies, from FSU to the Philippines. Current projects include gas in Ghana and shale in US.

Refining Terminals Marketing E&P Power

Physical trading,

logistics and distribution303 million tonnes crude and products traded in 2015:

6,629 ship journeys undertaken

200+ vessels at sea at any one time

Vitol’s trading business is built upon long standing

relationship with producers, refiners, industrial customers.

7

Vitol



Vitol LPG import into Nigeria

Kt pa

CAGR 2012-16

Prorated April-Dec

Existing: Two LPG spheres – total of 16,000 m3 nett storage capacity

Upcoming: One propane sphere of 6,000 m3 nett capacity

• Navgas LPG Terminal, Lagos

– Partnered with NIDOGAS, to build two 4,000 tonne pressurised spheres

– Dedicated jetty, enabling us to keep the local market supplied at all times

• Expanding with a Propane sphere

in construction... Only one in Africa

LPG leader in Nigeria

2015

207

2014

124

2013

68

2012

63

2016

+39.7%

239

80

159

• Significant local Nigeria LPG volume…

5 MTPA with only 5% used domestically

• Looking to source LPG locally and back it

up with imports

8



Agenda

Why LPG?




Where is LPG used?

9



Liquefied Petroleum Gas

3.9% of petroleum consumption is LPG

LPG is a mix of propane (C3) and butane (C4)

Current LPG demand

Power emerging as major consumer

1%

100%

Industry

Checmical28%

10%7%

World

11%Agriculture

Domestic &cooking

Transport

Nigeria

Refinery

44%

2015 LPG consumption by sector, kt pa

Example of LPG power projects

Location CountrySizeMW COD

Tema Ghana 144 2017

US VI St Croix 230 2016

Puerto Rico US 4 2016

Roatan Island Honduras 28 2016

Puerto Rico El Salvador 38 2015

Lekki FTZ Nigeria 12 2014

Source: EIA, Vitol

Diesel

KeroseneJet

Fuel oil

LPG

Other

Gasoline

10.04

1.243.91

6.80

1.24

19.36

1.72

What is LPG?

LPG

Pure propane

Pure Butane

90-10HD5 30-70 0-100Cooking fuel range

10-90Nigeria spec.

10



What is Liquefied Petroleum Gas?

Source: EIA, Argus

40

320

80

120

160

200

240

280

0

2010

MiddleEast

NorthAmerica

Europe &Eurasia

Lat America

Africa

Asia

15.7615.30

16.27

16.07

15.37

2011 2012 2013 2014

3.6%

Compared to 1.2%

pa for crude

20

10

0

5

15

Algeria

2012 2014

1.950

2013

1.956

4,500

0.3%

Egypt

Nigeria

Libya

2.311 1.830

2010 2011

South Africa

Angola

Other

World LPG production

CAGR 2010-14

-0.3%

-1.7%

+1.9%

+2.7%

+4.1%

+8.0%

Africa LPG production

-12.2%

+7.9%

+4.1%

X%

-5.8%

-13.5%-0.8% +6.9%

Production

acceleration

Nigeria supply growing… local and importsVitol adding to current import capability

Rapidly growing global and local Nigeria supply… LPG emerging as a secure global fuel

8

12

16

20

24

28

32

11



Price differential: Diesel vs. LPG ( Abuja)

Source: Platts, Bloomberg, GE, Vitol

01.01.2014 01.01.201601.01.2010 01.01.2012 01.01.202001.01.2018 01.01.2022

LPG

Diesel

Forward curves

787 440

LPG 27%

cheaper

LPG 22%

cheaper

Indicative delivered prices for an industrial customer in Abuja USD per MMBTU, (Inclusive of all transportation & handling costs)

1.5-3.0Y payback

Price differentials enable fast economic payback… little risk on project economics

12



Benefits of LPG power

Source: EIA, GE, Vitol

Flexible, reliable, secureCleaner & available assets

Low emissions

g/bhp-hr

Service intervals (hours)

Oil change, overhauls, hours (Top end & Major)

PM10 0.15

1.70

NOx 0.15

3.501.00

0.005

THC 4.00

CO

4.00

4.00SOx0.00

Diesel

VHP on C3

22500 – 45000

+100%

LPG

Diesel 12500 - 25000

Cheaper fuel vs. diesel

Indicative delivered LPG pricing in AbujaUSD/MMBTU, (Incl. of transportation & handling)

171616151417

2628

2928

121212121212

1819

24

20

2011 20192013 20172015

LPG Diesel

• Vitol LPG imports priced in the US $, with abundant supply expected to continue growing

• Nigeria diesel imports linked to volatile international crude

250

LPG 2,000

+800%

Diesel

LPG 98%

1.7%

Diesel 96.3%

Engine availability (Over 50,000 opr. hours)

1.7% availability 1+ month of operation

• Flexibility… switch to gas with no hardware changes

• Reliability... Guaranteed LPG w. dedicated supply chain

o Supplied from largest LPG terminal in West Africa

o Dedicated trucks to shuttle between Lagos and user site

o 5-14 day storage at site

• Quality… Standard LPG spec.

o High pressure product… unadulterated fuel quality

o Vitol supply setting quality std. in Nigeria for LPG

• Security… Gaseous fuel makes theft difficult



e.g. economics for industrial user in Abuja

Source: Platts, Bloomberg, GE, Vitol, customer, Asiko

291

206

45

542

2015

1

2

3

Increased

uptime1

CHP: total

efficiency3

Lowest cost

molecule2

Cleaner LPG enables

maintenance

Cheaper LPG enables

opex. cost savings

Heat recovery via CHP

eliminates diesel boilers

Total benefitUSD pa

Annual savings (USD per year)

Net annual benefit

3 main economic benefits contributing to up to half a million dollars in annual savings

1 Based on USD 5,000 / month and 755 reduction in service charges2 Based on propane vs. diesel, 150kL/month generation consumption3 Based on 43kL/month of diesel for boilers

13



Agenda

Why LPG?




14



GE – Vitol’s turnkey LPG power solution

Fuel supply and storageFuel supply and storage

Engines and servicing

Fuel supply and storage

Project execution & management

15



GE’s LPG, propane products (0.2– 30 MW)

0.90 – 1.00 MW

0.40 – 0.68 MW

1.80 – 2.30 MW

0.37 – 1.30 MW

0.16 – 0.60 MW

Fuel flexibility Applications

VGF

VHP

275GL+

Type 3

Type 4

• ~3,500 units sold• Fast start (peaking, backup) • Commercial & indust. power

• ~14,000 units sold• Fast start (peaking, backup)• Commercial & indust. power

• ~600 units sold• Commercial & indust. power

• ~8,000 units sold• Commercial & indust. CHP• Propane / NG

• ~2,500 units sold

• Commercial & indust. CHP• Biogas (landfills, waste water)

24 – 30.7 MW

• 176 units sold• 4 in Nigeria• Fast deployable

TM 2,500

Aero-derivatives

Jenbacher

Waukesha

All LPG qualities

Propane only

16



… supported locally by our partners

•Sales & services via…

– Clarke Energy: Jenbacher

– IGPES: Waukesha

•Installation & commissioning

•Operations & maintenance, including field services

•Training, overhaul services

•GE certified technicians

•Long term service agreement

•Local spare parts availability

•Presence in major cities17

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwib2aCh6NHMAhXpApoKHSv_BhYQjRwIBw&url=https://www.clarke-energy.com/about/&psig=AFQjCNGlCgVQhkwoSAy-klo0FXUF6SZhhg&ust=1463048841617837



Fuel supply, storage & operationsSourcing Delivery Site storage

Global LPG trading leader

• Local & global fuel souring

• Local source from refineries & gas processing plants

• Globally trading 10 MTPA

• 17 dedicated LPG vessels

• Owns & operates Navgas; largest W.Africa LPG import

• Adding 4,000 ton propane sphere (only one in Africa)

Virtual pipeline

• Asiko, a Nigeria Vitol JV, specialized in LPG delivery

• On site LPG delivery with dedicated infrastructure

• Dedicated fleet of trucks (<3Y old), growing at 15% pa.

Dedicated storage

• 5 days LPG availability1 with pressurized storage

• Bullets customized to meet fuel needs, site constraints

• Installed by Asiko/Vitol with GE/EPC as turnkey solution

• No theft , no fuel adulteration

Turnkey LPG supply, delivery, storage solution from Vitol-Asiko

1: Actual storage to be site-specific and commensurate with distance from terminal 18



Project management for a turnkey solution

Engines

LPG procurement

Fuel infrastructure• GE engine solution with performance guarantees

• Full EPC contract• Long Term Service

Agreement optional• Local GE servicing

partners, infrastructure

• Turnkey fuel procurement– Supply

guarantee… local and/or imports

– Fuel financing if required

• Full engineering of storage solution

• Bullets built to accept LPG range (propane to butane)

• Procure, construct, engine site connect

• Virtual pipeline (dedicated trucks, capacity at terminal)

19



Agenda

Why LPG?




20



Commercial & industrial propane power

Project & product

Commercial CHP applications

Product: Jenbacher J420Performance:

• 925/1000kWe (50/60Hz)

• 39-40% efficiency

Est . commissioning3Q 2016

Fuel

HD5 propane

Source: US gulf coastLocal partners: Delivery & storage

Attractive economics vs. liquid fuel power gen… option to shift to gas in the future

Puerto Rico

Puerto Rico

21



GE-Vitol LPG solution for US Virgin Islands

GenerationExisting WAPA turbines converted by GE to burn LPG, in addition to diesel, providing flexibility

Cost effective and reliable power gen… $90M fuel savings/20% lower CO2 per year

St Thomas

St Croix

St John

Randolph Harley Power Plant

Richmond Power Plant

US Virgin Islands

Supply7 year supply contract ensures 100% of USVI’s fuel needs met

InfrastructureUpgraded port to accommodate LPG; ownership transfer to WAPA of terminal & storage in 5Y

VaporizationLPG superheated to reach required turbine conditions by vaporization units installed on site with 100% redundancy built in

22



Asiko depots in Lagos, Kano, Abuja on LPG

GenerationWaukesha VHP7044 running on LPG and delivering 750 kVA

VaporizationLPG vaporizer used to deliver fuel in gaseous form to engines at low pressure

InfrastructureGAS: Typically a gas tank on site to store LPG along with piping and gas pressure regulators. Also, LPG safety systems

Asiko Depots, Lagos, Abuja & Kano - Nigeria

SupplySupply by largest LPG road tankers in the country (40% larger than conventional tankers)

Cost effective & reliable power generation… Independence from diesel operations

Nigeria

23




GE contacts: Toyin Abegunde (SSA sales head) Christoph Reimnitz

+234-814-132 2870 +44-7801-662 750

[email protected] [email protected]

Turnkey LPG power solution

Guaranteed fuel supply & security

Switch to natural gas as available

Less opex – hedge vs. rising diesel

Asset life & maintenance interval

5-7 days onsite fuel storage

Local service & repair

Attractive economics/payback

Financing for qualified customers

Can use existing diesel as back-up

Vitol contacts: Guillaume Quiviger

+44 20 7312 4498 [email protected]

24

mailto:[email protected]



Imagination at work

LPG for Power GenerationWaukesha & Jenbacher Gas Engines

GE Distributed Power

GE Proprietary Information—Class III (Confidential) Export Controlled—U.S. Government approval is required prior to export from the U.S., re-export from a third country, or release to a foreign national wherever located.

June 8th, 2016Abuja, Nigeria

Contents

27

© 2015 General Electric Company - All rights reserved


LPG product portfolio

Jenbacher, Waukesha engines

Aux. system, engine operation

Distributed Power overview


GE Distributed Power overview

28


IPP & Utilities

Oil & Gas

Grid firming

Agriculture & Food Processing

Commercial & Industrial Buildings

Greenhouse

Our end markets

Steel

Mining Waste-to-Power


29


30

GE Distributed Power – Product portfolio (50 Hz)

Broad gas-fired portfolio … ~200 kW to 10 MW


0.1 – 1.5 MW 1.5 – 5 MW

MOBILE/EMERGENCY POWER

5 – 10 MW

POWER GENERATION

MECHANICAL/O&G/MINING/MARINE

TYPE 2 249 kW – 330 kW

TYPE 3526 kW – 1.067 MW

Type 4746 kW – 1.500 MW

Type 61.820 MW – 4.498 MW

Type 910.38 MW

VGF*220 kW – 685 kW

VHP*540 kW – 1.460 MW

275GL+*2.705 MW – 3.605 MW

VGF*220 kW –685 kW

VHP*540 kW – 1.460 MW

275GL+*2.705 MW – 3.605 MW

J320* generator set1 MW

mobileFlex* J320/VHP*Gas Engines 860 kW – 1MW

616 Diesel Genset 2.55-2.78 MW


Peaking, backup power

Base load power only

Targeting 4 distinct on-site power generation solutions

Combined heat & power (CHP)

1

2

3Target … commercial, industrial, O&G, agri. facilities

Value prop … Meet site power, heating, cooling needs

GE technology … High efficiency , fuel flexible, fast

start Waukesha & Jenbacher engines

31

Waste to power4


Distributed power focus in power generation


Contents

32




Jenbacher, Waukesha engines



Distributed Power’s LPG capable engines

TYPE 3400 kW – 680 kW

TYPE 4900 – 1000 kW

VGF160 kW – 600 kW

VHP370 kW – 1.3 MW

275GL+1.8 – 2.3 MW

0.1 MW 3 MW

33

Jenbacher

Waukesha



Distributed Power’s LPG product portfolio

34

1: Rating available on special release © 2015 General Electric Company - All rights reserved

Waukesha Jenbacher

LPG mix type VGF VHP 275GL+ Type 3 Type 4

100% propane ◼ ◼ ◼ ◼ ◼

≥90% propane (HD-5) ◼ ◼ ◼ ◼ ◼

LPG: ≥50-90% C3 ◼ ◼

LPG: < 50% C3 ◼

LPG: 100 % C4 ◼

0.90 – 1 MW0.40 – 0.68 MW1.8 – 2.3 MW0.37 – 1.3 MW0.16– 0.60 MW

• Economics… cost of PG vs. liquid fuels

• Gas ready … Bridge fuel; little to no mods.

• Security… use local fuels, protect against theft

• Emissions… cleaner vs. liquid fuels

• Availability… svc. intervals, life vs. liquid

fuels; gas to propane/LPG switching capable


Contents

35




Jenbacher & Waukesha



Jenbacher type 3

36

100% propane & HD-51 1,500 rpm | 50 Hz 1,800 rpm | 60 Hz

Model Tons/hr3 kWe2 Tons/hr3 kWe2

J312 0.09 409 0.09 446J316 0.12 546 0.12 595J320 0.15 682 0.16 744

1: All ratings approved on a special project release basis only from the factory

2: All engines rated @ 40C intercooler water temperature

3: LPG - 1 Kg = 1.975 litres = 0.522gal = 43,690 BTU (LHV) = 45,367 BTU (HHV). Assumed composition 95% C3, 4% C2, % n-C4

HD-5 fuel consumption (gal/hr)3

50Hz 60HzJ312 46 49J316 61 65J320 77 81

HD-5 fuel consumption (kg/hr)3

50Hz 60HzJ312 88 94J316 117 124J320 148 155



Jenbacher type 4

37

100% propane & HD-51 1,500 rpm | 50 Hz 1,800 rpm | 60 Hz

Model Tons/hr3 kWe Tons/hr3 kWe

J420 0.19 926 0.20 1,022

HD-5 fuel consumption3

gal/hr kg/hr50Hz 97 18660Hz 106 203

1: All ratings approved on a special project release basis only from the factory

2: All engines rated @ 40C intercooler water temperature

3: LPG - 1 Kg = 1.975 litres = 0.522gal = 43,690 BTU (LHV) = 45,367 BTU (HHV). Assumed composition 95% C3, 4% C2, % n-C4



Engine operation on Propane HD-5 – Jenbacher

38

Gas

mixerAir

Regulator

dia.ne

Turbo

NG LPG involves no hardware change LPG NG involves minor hardware change to get full NG output1 (turbo, gas train)

Piston

• No core hardware change

on engine/genset from

base NG engine

• Fuel switching capable

o NG LPG/HD-5

o No unit shutdown

needed to switch (on

demand)

Fuel

Throttle

Bypass


1: ~50 kW drop vs. traditional NG rating, if hardware not changed


39

Waukesha Propane & HD-5>90% propane

1,500 rpm | 50 Hz 1,800 rpm | 60 HzVGF kWe kWeP48GL (LCR)1 625 750L36GL (LCR) 471 562H24GL (LCR) 313 372F18GL (LCR) 235 279

VHP 1,000 rpm | 50 Hz 1,200 rpm | 60 HzP9394GSI 1,099 1,322P9390GL 933 1,121L7042GL 701 848L5794GSI 623 762F3524GSI 372 442275GL+ 1,000 rpm | 50 Hz 900 rpm | 60 Hz16V275GL+ 2,351 2,12112V275GL+ 1,755 1,589

1: Contact Waukesha application engineering for product information



40

Waukesha LPG50/50% propane/butane2


1,500 rpm | 50 Hz 1,800 rpm | 60 HzVGF kWe kWeP48GL (LCR)1 625 750L36GL (LCR) 475 560H24GL (LCR) 310 375F18GL (LCR) 230 280

VHP 1,000 rpm | 50 Hz 1,200 rpm | 60 HzP9394GSI 932 1118L7044GSI 625 750L5794GSI 517 620


2. Contact Waukesha application engineering for performance on different blends. Assumes mix of i-butane and n-butane


41

Waukesha LPG100% n-butane2

1,500 rpm | 50 Hz 1,800 rpm | 60 HzVGF model kWe kWeP48GL (LCR)1 391 469L36GL (LCR) 294 351H24GL (LCR) 196 233F18GL (LCR) 147 174


2. Contact Waukesha application engineering for performance on different blends



42

Waukesha – additional non-LPG “hot” fuel capabilitiesHigh energy (2300-3000 BTU) Flare Gas


• Product capability now extended to

accommodate other high energy fuels

beyond 2300 BTU

• Opens up larger window of flare gas

possibility, for monetization

opportunities not previously possible

with gas engines


Engine operation on LPG – Waukesha

43

CarbAir

Piston

Regulator

Fuel Valve

Turbo

ESM

• No hardware change on

engine/genset from base

NG engine

• Fuel switching capable

o Gas LPG

o No unit shutdown

needed to switch

• Gas blending capable1

o Varying LPG mix

o Gas + LPG mix

• High gas quality tolerance

o +/- 150 Btu swings

without adjustments

No hardware change + High degree of fuel flexibility = Hassle free engine operation

1: Blending hardware provided by 3rd parties © 2015 General Electric Company - All rights reserved

VHP AFR2 system sample schematic


Contents

44




Jenbacher & Waukesha

Auxiliaries, emissions, O&M


Aux. system: Config. for dual fuel operation

45


CarburetorIntercooler

air cleaner

Air

Fuel piston

Regulator

Exhaust

Regulator

MAS valve

Solenoid valve

Solenoid valve

Nat. gas LPG

LPG for power generation Aux. components

(non engine)

Vent / safety relief valve

Vapor bypass

Vaporizer

O&M: e.g. with Waukesha engines

46


e.g. VHP

2000-3000

hours

Oil / filters

Sparkplugs

22K-26K

hoursTop end

overhaul

44K-52K

hours

Bottom end

overhaul

e.g. VGF

1500-2100

hours

Oil / filters

Sparkplugs

11K-24K

hours

Top end

overhaul

33K-48K

hours

Bottom end

overhaul

e.g. 275GL+

4000

hours

Oil / filters

Sparkplugs

36K

hoursTop end overhaul

72K

hours

Bottom end

overhaul


Waukesha’s robust rich burn design helps maintain similar O&M profile on LPG vs. NG

LPG emissions: e.g. with Waukesha engines

47


e.g. VHP e.g. VGF e.g. 275GL+

Fuel NG LPG NG LPG NG Propane

Combustion Rich burn Rich burn Lean burn Lean burn Lean burn Lean burn

Aftertreatment TWC TWC none none none none

NOx (g/bhp-hr) < 0.15 < 0.15 2.0 2.0 0.5 0.5

CO (g/bhp-hr) < 1.0 < 1.0 1.3 1.3 1.5 2.3

THC (g/bhp-hr) 1.7 1.4 1.7 1.7 5.3 3.9

PM10 0.005 0.005 0.005 0.005 0.005 0.005

SOx none none none none none none

Ta

ilp

ipe

ou

tLPG for power generation

Similar emissions profile vs. natural gas… significantly lower than diesel/HFO operation

Contact – Distributed Power commercial team


48

NameAndreas Eberharter(Tech. Solutions – Jenbacher)

Email: [email protected]

NameAlex Kibet (Application engineering leader)


Sub Saharan Africa

Head Quarters

NameCorey Honl(Tech. Solutions – Waukesha)



NameToyin Abegunde(SSA sales head)


NameSunday Olanipon (Sales leader)


NamePeter Ocheibi(Sales leader)








Imagination at work

GE Equipment Financing

David KeeferDirector, GE Power Global Growth Initiatives

June 9th, 2016GE Proprietary Information—Class III (Confidential) Export Controlled—U.S. Government approval is required prior to export from the U.S., re-export from a third country, or release to a foreign national wherever located.

0

2

4

6

8

B+AA-AAA

MENA

E. Europe

LATAM

SSA

Japan

IndiaASEAN

W. EuropeKorea

China

USA

’16 GWH

Sub invst. gradeElectricity Demand % growth rates

~40% of demand growth

BBB+

Low HiSovereign credit risk*

Growth regions have finance risks

* Based on Standard & Poor’s sovereign ratings weight by GDP to derive regional sovereign rating

GE is developing partnerships w/ local & int’l banks to enable financing

Fast growing regions need new financing approaches

Credit ratings are a key hurdle for fast growing emerging markets

Smaller, distributed projects reduce risk in any one project

Equipment loans and leases plus turnkey solution for LPG power (equip + fuel) is a key for C&I customer & developer projects

GE Capital segments going forward

Unique capabilities supporting GE Industrial divisions

Aviation ServicesEnergy

Financial Services

GE Industrial

Finance

#1 global aircraft lessor

~1,600 AC owned & serviced … financing for +225 customers

+85% of fleet powered by GE or CFM engines; average fleet age ~7 years

40+ years in industry

Provide financing solutions to energy industry … ~250 power and water projects

Similar Power & Water footprint … strong project expertise in renewables and thermal generation

30+ years across all sectors

Financing for GE Industrial customers and needs

Healthcare… Provide financing for over 3,000 GE Healthcare customers

Working Capital Solutions … optimizing the GE balance sheet

53

GE Industrial Finance

Working Capital

Solutions

GE balance sheet

optimization

GE Industrial Financing Solutions

HealthcareEquipment

Finance

GE Industrial

Equipment & GE Capex

GE Healthcare

Equipment

Philosophical shift to pure GE captive

$20B $2B Building…

New

Customized Financing Solutions for GE Customers

Enable GE Distributed Power Sales

A Team Dedicated to GE Distributed Power

Key Focus

1

3

2

54

Customer benefits of financingImproved cash management• Avoid large capital outlays

• Re-invest cash into your business

• Reach cash flow positive sooner

• Lower monthly payments

Increased flexibility and convenience

• Defer equipment purchase decisions

• Mid-Term purchase options

• Flexible options at end-of-term (upgrade, purchase, return)

Loans

Leases

Minimize asset risk• Ability to match equipment usage to contracts• Avoid time intensive and costly remarketing activities

• Limit risk of used equipment value fluctuations

Simplified payments• Combine equipment & maintenance into one payment

• Structure payments to match your cash flow

• Fixed rate payments for easy, predictable budgeting

Well-tested in developed markets, developing capability in emerging markets

Current GE Emerging Market Equipment Financing Capability

Export credit agency loans US EXIM OeKB EGAP Others

Deal specific financing support

Developing programmatic equipment financing with local & international partners Projects ≤$30MM… leases, loans, progress payments Standardized approach, terms & conditions Fast approvals for qualified customers Total solution financing… equip., storage, etc.

Available today

Under development

✓

✓

LPG Power Generation EXIM Financing for Nigeria

US EXIM Terms

US EXIM available

LPG capable units

GE delegated authority enables quick decisions

80% loan for qualifying customers up to $10MM

5 years terms

Fixed or floating rates vs. LIBOR

US$ loans

Customer or developer financing available

Select Approval Criteria

Financing US-made product

3 years audited financials orlocal bank guarantee

Profitable operations

Current creditor reference

EBITDA / debt service ≥ 150%

Net cash from ops / debt service ≥ 1:1 ratio

Summary

GE Capital has reorganized to focus exclusively on providing

captive equipment loans and leases to GE customers

Providing financing to emerging markets is a key focus

GE Distributed Power is working with local & international

lenders and export credit agencies (ECAs) to provide attractive

financing

ECA support is available today to qualifying customers and

developers

Total solution for Nigeria… equipment + fuel supply +

financing is our goal

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LPG AVAILABILITY AND PPMC INITIATIVES

ON MARKET EXPANSION

A PRESENTATION SUBMITTED BY

MANAGER, LPG DEPARTMENT

ATGENERAL ELECTRIC LPG TO POWER CONFERENCE

JUNE, 2016

BRIEF ON LPG MARKET EXPANSION-GREEN HOUSE REDUCTION IN NIGERIAAND CARBON CREDIT EARNINGS

Liquified Petroleum Gas (LPG), a hydrocarbon consist basically of Propane and Butane

Sources of LPG; Refineries, Other major Oil producing companies

Gas reserves is 187 trillion cubic meters. (DPR)

Oil reserve is 31.81 billion barrels. (DPR)

Population – 168 million (NPC) largest in Africa.

Large Nigeria population and its natural resources are strong assets.

Nigeria soonest shall be a major gas nation and a hub for LP Gas trading in West African sub-region.

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LPG PRODUCTION AND SUPPLY

PRODUCER PRODUCTION

(MT)DOMESTIC

ALLOCATION

(MT)

CONSUMPTION

FOR YEAR 2015

(MT)

GAP IN CONSUMPTION TO

AVAILABLE QUANTITY (MT)

NNPC REFINERIES

CHEVRON ESCRAVOS NGL

EXXON MOBIL OSO NGL PLANT

NLNG BONNY

NPDCOTHERS

70,000

600,000

1,040,000

1,200,000

240,000

62,500

NIL

350,000

250,000

69,000

TOTAL 3,150,00 731,500 400,000 331,500

45.32% OF AVALIABLE QTY IS A HUGE MARKET POTENTIAL TO EXPLORE FOR JOB AND WEALTH CREATION IN TERMS OF MANPOWER AND INFRASTRUCTURE

LPG VALUE CHAIN: SEGMENTATION

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Refineries

Import

Mobil

Chevron

Refilling

Plants

CONSUMERS

PPMC

Storage

Private

Depots

Butanization

DepotsCoastal

StorageNLNG

E

X

P

O

R

T

26 million

households

targeted for

conversion

Production & supply InfrastructureConsumers

Storage Capacity (MT)

• NNPC 41,980

• NAVGAS 8,000

• NIPCO 4,500

• SAHARA 1,000

• AP 840

• TOTAL 1,200

• OANDO 270

Total capacity 58,000MT

300 No of registered LPG marketers and 285

functional gas refill plants

Industrial

usersAuto gas stations

DEEPENING LPG MARKET IN NIGERIA

Distribution of LPG Marketers & Butanization Plants in Nigeria

Benue

Kano

Jigawa

Bauchi Gombe

Adamawa

Yobe

Borno

CrossRiver

EbonyiEnugu

Anambra

ImoRivers

Bayelsa

AbiaDelta

Edo

OndoOsun

Oyo

OgunLagos

Ekiti Kogi

Nassarawa

Abuja(FCT)Kwara

Katsina

Kaduna

Plateau

Taraba

Sokoto

Zamfara

Niger

Kebbi

Ibom

1

20 MT

LPG Mkters - 220 approx

20

849 MT

5428 MT

3 130 MT

163 MT

6

246 MT

10581 MT

3184 MT

48 10,677 MT

1

40 MT

1 20 MT

9595 MT

9 446 MT

10 500 MT

1 60 MT

9490 MT

12749 MT

6694 MT 1 40 MT

20

1,190 MT

2153 MT

265 MT

251,260 MT

10 512 MT4 172

MT

Butanization Plants

Gusau

Makurdi

IlorinIbadan

Calabar

100 out of 235 gas plants

are functioning. 8

butanization plants are

rehabilitated and

operational

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INITIATIVES IN LPG MARKET DEVELOPMENT

PPMC Strategic Focus

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Expansion of Apapa coastal facility from 4,000MT to 8,000MT/ Build a dedicated LPG jetty.

Rehabilitation and upgrade of existing LPG filling capacity from 2 to 4 units and install conveyor belts at the plants.

Prioritise the berthing of LPG vessels to improve turnaround of ships at the Lagos receiving jetties.

Promote the introduction of rail and pipeline for a safer and more economical supply of the product .

Government involvement on migration from all other sources of energy to LPG

Green House Reduction and Carbon credit earning

Public Affairs to champion the awareness campaign/education by partnering with NGO's Private sector on LPG handling.

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LPG MARKET DEVELOPMENT

PPMC Strategic Focus

AGENDA SCHEMATIC.. - A : RESIDENTIAL / B: AUTO / C: INDUSTRIAL

OBJECTIVES : DEMOGRAPHY : INTERVENTION : ACTION BY :

TARGET : BENEFITS : STAKEHOLDERS GAIN :

(A) LPG DOMESTICATION

(A) RURAL HOMESHOTELS, SCHOOLS,

HOSPITALS ETC

(C) LPG POWERED EQUIP : FORKLIFTS, GENS ,

(A) JOBS/BETTER HEALTH CARE

(A) MEET UP WITH M.D.G GOALS(A) 2015. .

MILESTONE

(A) GOVERNMENT/PRIVATE SECTOR

(A) MEDIUM/LONG TERM GOVT.

SAVINGS. PRIVATE SECTOR PARADIGM

SHIFT .

AWARENESS

(B) NATIONWIDE TRANSPORTATION

OPTION

(C) I NDUSTRIES

(A)INTRO OF 3KG CYLINDERS

(B)LPG CONVERSION KITS/VEHICLES , ETC

(B) GOVERNMENT/PRIVA TE SECTOR

(C) SURE - P PROG/PRIVATE SECTOR

(C) INDUSTRAIL

USE OF LPG IN

EQUIPMENT/ENER

(B) PMS/AGO SWITCH TO LPG

((B) REDUCE CARBON

EMMISIONS/CHEAP TRASPORT FARES

((C) INDUSTRAIL

GROWTH, EFFICIENT

ENERGY SOURCE

(B) RETURN ON INVESTMENT/

SAVINGS

(C) ADEQUATESUPPLY, CHEAPER ENERGY SOURCE

( B) SUBTITUTE TO PMS/AGO

(C) PROVIDE INDUSTRIES WITH

AVAILABLE AND EFFICIENT

ALTERNATIVE ENERGY SOURCE

(B) 2016MILESTONE

(C)2015MILESTONE

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RESIDENTIAL/COMMERCIAL LPG USE

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Category Sector Usage Benefits Challenges

RESIDENTIAL -Rural Poor -Household cooking-Commercial cooking

-Clean energy provision

-Family income generation

-Create employment

-Better Health/Environ

-Forex savings on LPG import-Income Tax

•Public awareness of LPG

•Initial Cost

•Conversion

•Infrastructure Development

•Regulation/Policy enforcement

•Change resistance

Urban Mid Class

-Household cooking-Commercial cooking

COMMERCIAL -Urban Mid Class

-Restaurants

-Community kitchens

Hospital/Schools/ Hotels

-Cooking-sterilisation

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CATEGORY SECTOR USE BENEFITS CHALLENGES

FUEL FOR LIGHT VEHICLES

PUBLIC AND PRIVATE TRANSPORT

LIGHTBUSES •CHEAPER TRANSPORT

•GOVT IMPORT SAVING

•GOVT FOREX SAVING

•GENERATE BUSINESS /JOBS

•BETTER HEALTH/ENVIRONMENT

•CHEAPER OPERATIONS

•MORE GOVT TAX INCOME

•INITIAL COST

•CONVERSION CHALLENGES

•INFRASTRUCTUREDEVELOPMENT AND COST

•REGULATIONS ENFORCEMENT

•CHANGE RESISTANCE

•POLICY DEVELOPMENT / ENFORCEMENT

LIFTING FORKLIFTS

PUBLIC/PRIVATE TRANSPORT

VEHICLES

PRIVATE TRANSPORT

MOTOR CYCLES

FUEL FOR HEAVY VEHICLES

PRIVATE TRANSPORT

TRUCKS

BUSES

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Category sector Usage BENEFITS CHALLENGES

POWER TURBINES STATE GOVTS•CHEAPER TRANSPORT

•GOVT IMPORT SAVING

•GOVT FOREX SAVING

•GENERATE BUSINESS /JOBS

•BETTER HEALTH/ENVIRONMENT

•CHEAPER OPERATIONS

•MORE GOVT TAX INCOME

•INITIAL COST

•CONVERSION CHALLENGES

•INFRASTRUCTUREDEVELOPMENT AND COST

•REGULATIONS ENFORCEMENT

•CHANGE RESISTANCE

•POLICY DEVELOPMENT / ENFORCEMENT

MICRO TURBINES

PORTSW.HOUSES

PETROCHEMICAL FEED STOCK

AIRCONDITIONING OFFICES

CONSTRAINTS TO LPG MARKET GROWTH

• Low Demand

Subsidy on Kerosene

High cost of LPG and appliances

Safety misconceptions

lack of awareness and education about LPG

Supply and logistics bottlenecks

Unfavourable fiscal regime

o VAT on LPG sales

o High duties on imported LPG equipment

o Excessive Union Taxes and Levies at LPG loading depots

Lack of Technical/Commercial regulations

Absence of incentives for potential investors69

INCREASE LPG UTILIZATION IN NIGERIAAND

BENEFITS• Reduced utilization of Kerosene/complete subsidy removal

• Improved health of the populace

• Clean environment

• Conducive business environment

• Employment generation

• Profitability

• Increase Government revenue

• Meet Millennium Development Goals

• Savings for consumers

• Carbon emission reduction

• Revenues through CER credits70

WAY FORWARD AND CONCLUSION

ISSUES ACTION PARTIES

Market awareness Nationwide campaign: Radio Jingles, TV Adverts, Road shows and Trade fair exhibitions.

FGN/NNPC

Retailinfrastructure

Provide Trucks, Skid Stations, Bobtails, containerized gas filling plants.

Provide cylinders and appliances into the market (3kg, 6kg 9kg and 12.5kg).

FGN/NNPC/

LPG

Stakeholders

LPG supply /pricing Sustainable supply of LPG / appropriate pricing NNPC/GAS PRODUCERS

Taxes/Regulation Remove VAT on domestic LPG/import duties on equipment. FGN

Competing fuel-kerosene

Reduce subsidy on kerosene FGN

Pilot scheme Embark on pilot projects in selected areas NNPC

LPG Investment Collaborate with Financial institutions FGN/stakeholders

Policy Develop a policy and framework to encourage LPG utilization in Domestic, Autogas and Industrial sectors.

FGN

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