PETRONET LNG LIMITED

A CORPORATE PROFILE

PETRONET LNG LIMITED 2011 OVERVIEW

Global & India’s Primary Energy Consumption Scenario India’s Gas Scenario, Infrastructure Pricing of Gas Role of LNG in India About Petronet’s . Dahej & Kochi Terminals . New Initiatives . Performance PRIMARY ENERGY PER CAPITA CONSUMPTION

Source : BP Statistical Review June 2011 PRIMARY ENERGY CONSUMPTION (MTOE) - WORLD

Year 2005 6% 6% Fuel 2005 % 2010 % Oil Gas Oil 3837 36 4028 34 36% coal 28% Gas 2475 24 2858 24 Nuclear Hydro Coal 2930 28 3556 30 Renewables 24% Nuclear 627 6 626 5 1% Year 2010 Hydro 669 6 776 6 5% 6% Oil Renewables - - 159 1 34% Gas coal Total 10537 100 12002 100 30% Nuclear Hydro Renewables 24%

Source : BP Statistical Review-June 2011 PRIMARY ENERGY CONSUMPTION (MTOE) - INDIA

Year 2005 1% Fuel 2005 % 2010 % 5% Oil Oil 116 30 156 29 30% Gas coal Gas 33 8 56 11 Nuclear 56% 8% Hydro Coal 213 56 278 53 Renewables Year 2010 Nuclear 4 1 5 1

Hydro 22 5 25 5 1% 1% 5% Renewables - - 5 1 Oil 29% Total 387 100 524 100 Gas coal Nuclear 53% 11% Hydro Renewables Source : BP Statistical Review-June 2011 INDIA – A MAJOR GAS/LNG CONSUMER

 13th largest gas consumer – 70 BCM (~190 MMSCMD)  6th largest LNG importer – 16 BCM (~44 MMSCMD)  Economy increasing at CAGR of 7-8% p.a. with similar increase in Energy Consumption  Share of Natural Gas in Indian Energy basket to increase from 11% to 20% by 2025  Despite increase in domestic gas production- dependency on imported gas to increase substantially  Pipeline network- developing into a national grid- needs to grow faster, connecting new markets CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO

550+ (19.5+) 400.0 381.0 (13.5) Demand Supply 350.0

( Bcf/Day) 341.1 (12.1) 300.0 ( MMSCMD) 306.4 (10.8) 250.0 253.4 (9.0) 240 (8.5) 215 200.0 (7.6) 178.9 (6.3) 202.9 (7.2) 191.6 (6.8)198.4 (7.0) 150.0 146 (5.2) 155 (5.5) 100.0

50.0

0.0 2010-11 2011-12 2012-13 2013-14 2014-15 2019-20

Demand – Mercados Analysis Supply – Directorate General of Hydrocarbons (DGH) SECTOR WISE PROJECTED GAS DEMAND

Gas Demand (MMSCMD)

250.00

200.00

150.00

100.00

50.00

- 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Power Fertilizer City Gas Petchem-Refinery Sponge Iron

2010-11 2011-12 2012-13 2013-14 2014-15

Power 87.71 149.11 185.52 212.73 243.34 Fertilizer 49.39 57.48 68.08 68.08 68.08 City Gas 13.70 17.53 22.44 28.72 36.76 Petchem-Refinery 24.44 25.42 26.43 27.49 28.59 Sponge Iron 3.71 3.82 3.93 4.05 4.17 Total 178.94 253.36 306.41 341.08 380.95

Source: Mercados Analysis, 2010 LARGE DEMAND BUT SENSITIVE TO PRICE

Gas demand and supply, 2015 Mmscmd, at customer gate prices 388

77 276 311 35 59 230 203 46 126 91 171 19 45 25 40

185 185 185 185 146 1 2 3 4 2010 year Price of $16- Low Price of $13- Medium Price of $11- High Price of $8- Potential end 17/ mmbtu 14/ mmbtu 12/ mmbtu 10 mmbtu demand, consumption 2015

▪ Industries ▪ Refineries ▪ Peaking ▪ Baseload Sectors with ▪ CNG ▪ Industries power power demand transport ▪ Power plants ▪ New fertilizer cogen plants

Imports

Prices at Crude of $ 100/Bbl Domestic supplies

1 Based on estimated LNG supply of 8 mtpa in 2015 including RasGas (7.5 mtpa) and 1.5 mtpa from Gorgon LNG in 2015 SOURCE: Indianpetro; DGH; Company annual reports; Expert interviews; McKinsey analysis INDIA’s GAS INFRASTRUCTURE LNG IN INDIA

 Hydrocarbon Vision 2025’ envisaged a GDP growth of 5-6% for the E&P sector along with demand supply scenario of oil & gas in the Country  Current GDP growth of 7–9% translate into overall energy demand growth at CAGR of 7.50%  Given India’s growing energy requirements & unlikelihood of matching increase in the domestic supplies, despite some significant oil & gas finds recently, the import dependence is only going to accentuate sharply in the coming years  LNG Regas Capacities . Presently, India’s LNG import capacity is around 13.5 MMTPA through its two terminals & meeting approx. 20% of total gas supply of the country PETRONET LNG LIMITED

 Incorporated on April 2, 1998

. Authorized Capital USD 260 mln, Paid up capital USD 160 mln

 Commencement of Commercial Operations - April, 2004

 Equity . 50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL ) . 10% held by GDFI (part of GDF SUEZ) . 5.20% ADB TOWARDS THE VISION

Vision Business Strategy

To be a key energy provider to the nation by leveraging unique position in the LNG value-chain with international  Create and manage world-class presence LNG infrastructure

 Pursue synergistic business opportunities Revenue grew 24% 2849 EBITDA growth 17%  Continue excellence in LNG business 2305 - Focus on higher capacity 1772 utilization and better operational efficiencies 1425 1198 - Diversify LNG sources  Diversify business - Gas-based power generation 208 201 273 146 196 - Venture into city-gas distribution/ direct marketing FY-07 FY-08 FY-09 FY-10 FY-11 to far-flung consumers - Solid cargo port at Dahej Revenue (all values in USD Million) EBIDTA  Maintain highest standards of business ethics DAHEJ LNG TERMINAL

 Located at West Coast, State of Gujarat in the Gulf of Cambay  Commencement of Operations in 2004  Capacity (Mmtpa) : 5.0 10.0  Truck Loading facility can handle 2500 loadings/ yr.  LNG Cargoes unloaded :761(September 21,2011)  Further capacity expansion to 15 Mmtpa . Second Jetty : Under Construction . Regas & Storage Capacity : DFR Under Progress . Pre Project Activities started DAHEJ LNG STORAGE TANKS DAHEJ REGAS FACILITIES WITH AIR-HEATER LNG TRUCK LODING FACILITIES – DAHEJ

WEIGH BRIDGE VAPORISATION FACILITIES KOCHI LNG TERMINAL

 LNG Terminal located in Special Economic Zone with Co- developer status

 Capacity 2.5 5.0 MMTPA

 Tied up 1.44 MMTPA LNG from Exxon Mobil’s Gorgon Project

 Two Storage Tanks being constructed by IHI, Japan

 Regasification Facilities being constructed by CTCI, Taiwan

 Marine Facilities being constructed by Afcons Infrastructure Ltd

 Progress on schedule, overall completion more than 87%, scheduled commissioning by end 3rd Qtr. , 2012 KOCHI – STORAGE TANK KOCHI - MARINE FACILITIES NEW THIRD TERMINAL AT EAST COAST

 Proposed Capacity: 5 MMTPA  Possible Locations: Andhra or Orissa Coast  Regasification Scheme: Indirect Fluid using ambient air heater  PFR Completed  Site Selection Process under progress  Process for selection of Consultant for DFR started INTEGRATED POWER PLANT AT DAHEJ

 Proposed power plant of 3 x 356 MW-ISO (total 1068 MW CCGT) with improved performance, the expected output is 1200 MW  Fuel requirement of 1.0~1.1 Mmtpa LNG  Implementation schedule . 12~15 months for pre-development activities . 33 months for construction and commissioning  DFR for a 1200 MW Power Plant - completed  Land Acquisition & Environment Clearance – under progress.  Power project planned to harness cold energy from LNG Terminal DIRECT MARKETING

 Petronet exploring opportunities to supply LNG to Coastal area consumers through small LNG Vessels in India and neighbouring countries  Direct Marketing by focusing on the following areas:

. Signed HOAs with bulk end consumers in Power, Refineries & Fertilizers Sectors

. LNG/LCNG supplies through Trucks, to LNG hubs, Satellite Stations at customer’s premises in regions not serviced by pipelines BUSINESS MODEL

 Robust Model

. LNG supply contract with RasGas, Qatar & Exxon Mobil, Australia

. Gas Sales Agreement with GAIL, IOCL & BPCL back to back with SPA

. Time Charter Agreement with established consortium

. Entire Fuel cost pass through including exchange rate

 Location

. Proximity to LNG suppliers

. Most competitive LNG transportation cost . Proximity to Customers – HBJ pipeline, DUPL and GSPC network in Gujarat FINANCING

 Very strong parentage and a robust business model

 Financing cost is amongst the lowest in the industry  With the use of effective hedging techniques, the Company has been able to maintain a low cost of debt service even in such turbulent times PERFORMANCE GRAPH

Sales Trillion BTU Net Worth (Million USD) 450 700 412 638 400 384 600 583

350 322 321 500 486 300 287 431 247 400 250 352

200 300 277 233 150 125 191 115 200 100 100 50

0 0 PERFORMANCE GRAPH

Million USD PAT Million USD Turnover USD Million 160 3000 2849

140 135 2500 2305 120 113 103 2000 1772 100 88

1425 80 1500 68 1198 56 991 60 1000 834 42 40

500 423 20

0 0 -6 -20 PERFORMANCE BASED ON EMPLOYEE PARAMETERS

2010-11 2009-10 2008-09 No. of Employees 276 273 256 Turnover/ employees (USD Million) 10.31 8.47 7.24 Profit Before Tax / Employee (USD Million) 0.70 0.47 0.66 Employee Remuneration cost as % of Profit) 3.3% 3.41% 2.53%

 Total no. of employees : 276  Training & Development : 6 Mandays / Employee  Average Age: 34 years (58% employee in 31-40 years of age)  63% of employees are Graduates or Post Graduates  Average years of association of employees with Company 5 years  Attrition rate 2010-11 : 4% FINANCIAL PARAMETERS

EPS (USD) 0.18 0.15 0.14 0.12

0.09

0.06

FY-06 FY-07 FY-08 FY-09 FY-10 FY-11

Year EPS (USD) P/E D/E Ratio FY-06 0.06 23.99 1.17 FY-07 0.09 11.15 1.08 FY-08 0.14 11.62 0.97 FY-09 0.15 5.75 1.15 FY-10 0.12 15.19 1.12 FY-11 0.18 14.86 1.20 SHAREHOLDERS WEALTH CREATION

As on Mar, 31 2004 2005 2006 2007 2008 2009 2010 2011 Current

USD per share 0.58 1.00 1.34 1.01 1.60 0.87 1.78 2.67 3.87

Mkt. Price INR 27 46 62 47 73 40 82 123 178

USD per share

3.87

2.67

1.78 1.60 1.34 1.00 1.01 0.87 0.58

2004 2005 2006 2007 2008 2009 2010 2011 Sep/11 FINANCING STRUCTURE

(US$ MILLION) Particulars Dahej Kochi 2nd Total Terminal Terminal Berth at Dahej Shareholders Fund 250 270 60 580 Equity Capital/Internal accruals/Premium

Debt 550 630 140 1320

Total Means of Finance 800 900 200 1900 CSR -THE JOURNEY HAS JUST BEGUN…………… TOWARDS AN INCLUSIVE SOCIETY

 Participative community development programmes with GIDC Luvara & Lakhigam villages

 CODEGAZ, the CSR arm of our strategic partner GDF Suez supports our cause. Health & Sanitation

 Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage.

 Preventive and Social medicine aids (includes primary health centre). Education and Employment generation programs

 Construction of School , Scholarship & Vocational Training.

 Sponsorship of differently abled children of Tamanna School & inauguration of Petronet LNG Centre for Vocational Rehabilitation.

 Indirect employment for local villagers in the area of Housekeeping & Horticulture. Community Development

 Renovation of personal facility & fencing at Panchayat office of Luvara Village, Gujarat.

 Govt. Development Schemes (Kanya Kelvani, Beti Bachao)& Devp. Distt Civic Centre. NOTES Thank You Corporate Office Petronet LNG Limited, 1st Floor, World Trade Centre, Dahej Plant Kochi Site Petronet LNG Limited Babar Road, Barakhamba Petronet LNG Limited GIDC Industrial Lane, Estate, New Delhi – 110001 Survey No. 347, Plot No. 7/A, Dahej, www.petronetlng.com Puthuvypu P.O. , Taluka Vagra, Kochi, Kerala - 682508 Distt. Bharuch For any other info. : [email protected] Gujarat - 392130 Ph: 91-11-23411411