Monthly World EnergyMarket Review

Release Date: April 9, 2015

International Pricing Information

US Current price M/M (%) Y/Y (%)

Power (MWh)

Avg. price ind users $66.20 - 5.60 % - 3.50 %

PJM region weekday $37.60 - 18.60 % - 22.00 %

Palo Verde weekday $31.15 + 49.00 % - 38.70 %

Natural Gas (Dth) per Dth.

Henry Hub $2.62 - 17.10 % - 39.50 %

WTI (US$/bbl)C: $51.45

M/M: - 0.60 %Y/Y: - 48.70%

Venezuela Oil Basket(US$/bbl)C: $44.88

M/M - 10.20 %Y/Y - 52.90 %

Brazil CEPEA Hydrous Ethanol (US$/l)

C: $0.4256M/M: - 7.50 %

Y/Y: - 26.00 %

Europe Current price M/M (%) Y/Y (%)

Baseload Power (MWh) – Month Ahead

Germany € 40.27 + 0.80 % + 38.20 %

France € 51.36 + 2.40 % + 30.00 %

Spain € 46.75 + 23.40 % + 24.60 %

Swiss € 51.06 + 1.20 % + 14.40 %

UK £ 43.50 - 0.84 % + 3.20 %

Italy € 45.00 - 4.50 % - 2.00 %

Natural Gas (MWh)

NL (TTF) € 22.34 + 2.00 % + 15.80 %

UK (NBP) £ 15.71 - 3.80 % - 8.40 %

Rotterdam Coal (US$/t)

C: $58.02M/M: - 7.10 %Y/Y: - 21.90 %

Singapore Fuel Oil (US$/ Ton)C: $324.00

M/M: - 3.60 %Y/Y - 45.70 %

Japan LNG(US$/ Dth.)C: $ 14.28

M/M + 6.80 %Y/Y: - 9.00 %

Australia Current price M/M (%) Y/Y (%)

Baseload Power (MWh)

Queensland $48.56 + 0.50 % - 9.00 %

Global Energy Review – International Markets

• New energy storage plant could revolutionize renewable sector. Foundations for an energy storage plant in Ireland that

could revolutionize the integration of renewable power into electricity supplies will be laid within weeks. The plant will use a

motor-generated flywheel to harness kinetic energy from the grid at times of over-supply. This will then be released from

submerged turbines at times of supply shortfalls. The flywheel project has received funding from the European Commission

and the Irish government. It is expected to create 50 new jobs.

• The Trans Adriatic Pipeline (TAP), which will carry Azeri gas to European markets, and is seen as Europe's alternative to its

reliance on Russia, is open to new shareholders, including Iran, a spokeswoman for the project said yesterday (8 April). The

pipeline aims to transport gas from Azerbaijan's Shah Deniz II field in the Caspian Sea, one of the world's largest gas fields, by

the end of the decade. TAP is part of the Southern Gas Corridor. The 870 kilometer (545 mile) pipeline will connect to the

Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, and cross Greece and Albania, and the Adriatic,

before reaching southern Italy.

• Ukraine has signed a new agreement to buy Russian gas over the next three months for $248 per thousand cubic meters,

after paying $329 in the first quarter of this year, under the recently expired 'winter package'.

International Energy Markets - Review

Global Energy Review – US Markets

• WTI crude oil prices have remained largely range bound. Unrest in Yemen and Saudi Arabia’s military involvement has

supported prices, sparking renewed concern of supply disruptions. Volatility in the US Dollar in response to concerns of a

federal funds rate hike was also a factor during the month. Crude prices rallied at the end of the month with the EIA reported

a 4.8 MMbbl increase in storage; such data would be bearish, historically, but compared bullishly to recent 8+ MMbbl

increases. The report also signalled slightly reduced domestic production. However, prices are unlikely to rally significantly

sue to extraordinarily high levels of storage in Cushing, OK and the fact that OPEC production has not been cut in the face of

low prices.

• NYMEX natural gas prices have weakened as market participants begin to focus on spring shoulder season. The late winter

extreme cold in the Northeast has allowed for prices to remain somewhat stable. The 19 March EIA inventory report yielded in

first net storage injection of the year, but the week following returned to a small net withdrawal, supporting prices. The

injection season should start in earnest with the next EIA report and the pace of injections will dictate the future course of

pricing.

• Hourly power prices in the East have fallen significantly as the weather has warmed. The reduced demand for heating has led

to lower natural gas prices in the region, which in turn led to lower power prices. California prices remain weak even with

reduced hydro output due to the super drought. As the weather continues to moderate throughout the county, low prices are

expected to continue.

United States Energy Markets - Review

Global Energy Review – European Markets

• Greece and Hungary have endorsed plans for a Russian gas pipeline in the latest blow to EU unity over the Ukraine

crisis. Their foreign ministers, Nikos Kotzias and Peter Szijjarto, and counterparts from Serbia, Macedonia, and Turkey

added their names to a declaration on the “Turkish Stream” project in Budapest.

• EU state aid regulators will investigate whether European governments are paying illegal subsidies to utilities for holding

power generation in reserve, EU officials said. Capacity mechanisms are used in some EU nations, such as Britain, to

fund electricity generation that is not necessarily cost-effective but is needed to guarantee supply. The European

Commission, the EU executive, has said these should only be a last resort. Many utilities have complained that it is

currently not profitable to run state-of-the-art gas plants, important for securing supply and offsetting intermittent

renewable sources. Under a capacity mechanism, the German government would raise funds to pay operators such as

RWE and E.ON to keep such generation running, even it is not profitable. France plans to follow Britain in introducing a

capacity market, while other countries such as Germany have preferred to put in place strategic power reserves.

• Smart grids balancing intermittent solar and wind energy with flexible power demand could do for Europe what shale gas

has done for the United States. Smart grids are crucial for EU single energy market plans as they could integrate more

renewables into electricity networks, boost security of supply and help lower prices for consumers.

European Energy Markets - Review

Global Energy Review – Asia/Pac Markets

• Malaysia’s Johor state has started up Southeast Asia’s first commercial crude oil storage terminal with the receipt of one

million barrels of Middle Eastern crude from a supertanker. Costing RM2 billion, first phase tanks, supported by six deepwater

berths, has the capacity to store, blend and handle 1.3 million cubic meters of crude, petroleum and petrochemical products.

The terminal has the capacity to store 420,000 cubic meters (about 2.6 million barrels) of crude oil.

• In response to the growing liquefied natural gas (LNG) trade, the world’s largest shipping association said it is working with

the industry to develop a new contract to provide for better risk and cost-management of the fuel’s transportation under

voyage charter terms. The Baltic and International Maritime Council (BIMCO), which claims its membership controls around

65% of the world’s shipping tonnage, said the new contract is designed to add “flexibility to the spot market and give parties

alternative means to manage their risks and control costs.”

• Piracy, maritime accidents and potential terrorist acts are adding to the cost of moving and distributing oil and gas cargoes

and general merchandise in Southeast Asia at a time of rising traffic through the increasingly congested Straits of Malacca

and the Singapore Straits.

Asia-Pac Energy Markets - Review

Global Energy Review – LATAM Markets

• Chile: The Chilean government has launched a new plan that will reduce emissions of fine particulate matter (PM 2.5) on

days declared as environmental emergencies and pre-emergencies. Such measure, which will be effective from now until

September, will halt operations on some 1,357 industries on pre-emergency days and 2,276 on emergency days. Authorities

expect the measure to reduce fine particulate matter by 20% and prevent 476 premature deaths. (El Dinamo 4/1/2015)

• Mexico: Director General of the Federal Electricity Commission (CFE) of Mexico, Enrique Ochoa Reza, announced the

development of 15 renewable energy projects representing an investment of US$4.8 billion in the coming years. His

announcement came during the opening of the "Brilla Mexico" campaign, a citizen movement for the sustainable use of

energy, and he highlighted the fact that these new projects will add an additional 2.7 gigawatts (GW) to the country's

electrical grid. The Latin American region as whole has seen an increase in the use of non-conventional renewable energy

(NCRE). The World Wildlife Fund described Latin America as the "new region of predilection for renewable energy." Between

2002 and 2012, wind energy increased 26% globally but 51% in South America. Just in 2014, NCREs provided 96% of

Uruguay's electricity. The challenge moving forward is the region's growing demand for more energy as it experiences

economic growth and the perverse relationship with the fossil fuel industry experienced in certain countries such as Peru,

Bolivia and Ecuador. For the first time, General Motors (GM) plans to use wind energy to power one of its assembly plants in

Mexico. The additional 34MW of wind power from the Toluca Complex will help GM reach its target of 125MW of energy

from renewable sources four years early, and culminate in the company sourcing more than 12 percent of its energy

consumption from renewable sources. In addition, the projected expansion will help local communities reduce emissions from

electricity generation by 40,000 metric tons of carbon dioxide annually.

• Costa Rica: There are two of the many efficiency programs that can bring major cost and energy savings to Costa Rica. NRDC

is supporting local partners in the Ministry of Environment & Energy, Costa Rica Institute of Electricity, University of Costa Rica

and Costa Rica Refinery to implement an Energy Efficiency Center in San Jose.

LATAM Energy Markets - Review

Appendix – Commodity Pricing Data

Brent Crude - month ahead contract (US$ per barrel)

Foreign Exchange (Euro/USD)

Appendix – Commodity Pricing Data

Coal CIF ARA 2016 delivery ($/T)

Natural gas prices, “Calendar year 2016” NBP in £p/therm, TTF & EEX gas in €/MW/h)

Appendix – Commodity Pricing Data

European electricity prices for “Calendar Year 2016” (€/MWh)

Appendix – Commodity Pricing Data

European day ahead electricity prices (€/MWh)

Glossary

Term Definition

Avg Price Industrial Users Latest unit cost for electricity consumed by industrial users as reported by the U.S. Energy Information Administration (EIA). The EIA usually publishes the data 4 months after the month of consumption.

Henry Hub Natural GasThe Henry hub in Erath, Louisiana serves as the pricing point for natural gas futures traded on the New York Mercantile Exchange (NYMEX).

WTI Crude Oil

The reported WTI light crude oil future price is the market determined value of next month’s contract to either buy or sell in multiples of 1,000 barrels West Texas Intermediate or other light sweet crude oil. WTI light crude oil contracts are only executed for physical delivery in relatively few cases but nevertheless they serve as an important pricing mechanism for contracts that are actually executed for physical delivery.

PJM Region Weekday

The Pennsylvania-New Jersey-Maryland (PJM) interconnection functions as a power pool for all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. The PJM power pool is currently the largest competitive wholesale electricity market. The price reported here is the price during weekdays.

Palo Verde Weekday

The Palo Verde switchyard located in Tonopah, Arizona is a key point in the western states power grid and is used as a pricing point for electricity across the southwest United States. The price reported here is the average market price for peak electricity to be consumed on the next day. Peak hours under this contract are from Mon – Sat between 0700 – 2200 hours local time.

Brazilian EthanolThe market price for a next month delivery of 1liter of ethanol at the mill gate in Sao Palo state as calculated by Cepea.

Rotterdam CoalThe market price for a next month delivery of coal in the Amsterdam – Rotterdam – Antwerp (ARA) port area.

GermanyThe market price for one MWh of baseload electricity to be delivered next month as traded on the EPEX Spot Market www.epexspot.com.

FranceThe market price for one MWh of baseload electricity to be delivered next month as traded on the EPEX Spot Market www.epexspot.com.

Glossary

Term Definition

SpainThe market price for one MWh of baseload electricity to be delivered next month as traded on the trading platform belonging to the Operador do Mercado Iberico de Energia (OMIP).

SwissThe market price for one MWh of baseload electricity to be delivered next month as traded on the European Energy Exchange (EEX).

UKThe market price for one MWh of baseload electricity to be delivered next EFA month as traded on the Intercontinental Exchange (ICE). EFA month stands for the specific calendar in use under the Electricity Forwards Agreement that breaks up the year in equal blocks of 4 and 5 weeks so as to simplify trading.

TTFThe Title Transfer Facility (TTF) is a virtual hub that serves as a pricing point for natural gas contracts within the Dutch gas network. The actual contracts are traded on the European Energy Derivatives Exchange (ENDEX).

NBPThe National Balancing Point (NBP) is a virtual hub that serves as a pricing point for natural gas contracts within the United Kingdown. The actual contracts are traded on the Intercontinental exchange (ICE).

Singapore Fuel OilThe market price for Free on Board (FOB) 180 Centistoke (CST) fuel oil in Singapore port to be delivered next month.

Japan LNGThe reported price for LNG in Japan is derived from the price of West Texas Intermediate (WTI) crude oil by means of an index formula and is reported in US Dollar per decatherm.

Queensland Baseload PowerThe market price for one MWh of baseload electricity to be delivered next month in Queensland as traded on the Australian Securities Exchange (ASX).

Brent Crude OilBrent crude oil is a combination of light crude oil from 15 different oil fields located in the North Sea. Due to the high quality of Brent crude, it is ideal for making gasoline and middle distillates. As such, Brent crude forms the pricing benchmark in Europe and Africa.

Glossary

Term Definition

Foreign ExchangeThe blue line in the graph presents the daily exchange rates Euro to USD while the red line represents the moving average over the last 14 trading days.

Coal CIF ARA 20XX DeliveryCoal is an important input fuel for electricity generation. The coal price reported in appendix 3 is inclusive of commodity Cost, Insurance and Freight (CIF) from its origin to the ports of Amsterdam – Rotterdam –Antwerp (ARA) to be delivered next month.

Natural Gas Price for Calendar 20XX

The featured contracts in this graph are for the delivery of natural gas in the UK (NBP), Dutch (TTF) and German (EEX) markets in the next Calendar year. The benefit of the annual contract is that the buyer has an average price throughout the year rather than individual prices for each month that are priced according to market conditions and can show great variances between winter and summer prices. For further information on the specific country contracts, please refer to the glossary for the world report.

European Electricity Prices for Calendar Year 20XX

The featured contracts represent the current market price for one MWh of baseload electricity to be delivered next calendar year (except UK) as traded on each of the respective exchanges mentioned as source. The electricity market in the UK features the season contract as its longest contract. As a result, the reported market price is the average of the nearest summer and winter contracts.

European Day Ahead Electricity Prices

Next to future contracts, each electricity exchange also features a day ahead contract. The day ahead contracts are characterized by greater volatility than the monthly and longer period future contracts as they are more susceptible to actual supply and demand on the day as well as the other factors influencing the longer contract prices.

Confidential

This presentation and the information contained herein is confidential and

intended for NUS Consulting Group clients.

The material contained herein represents the opinion and views of NUS Consulting

Group and is provided to discuss general market activity, industry and sector

trends, as well as other broad-based economic, market and political conditions.

This information should not be construed as research or investment/purchasing

advice. Persons responsible for the purchase of energy for an organisation must

consider their organisation’s own objectives, risk tolerance and market forecast

when undertaking energy purchasing decisions.

The circulation or distribution of this presentation or the information contained

herein to persons other than the Intended Entity or its employees is strictly

prohibited