Spencer Gulf LNG Pty Ltd (SGLNG) Michael Schaumburg

Excellence in Oil and Gas Conference 11 – 12 March, 2014 Project Objectives

. Develop a world class LNG facility in southern Australia

. Establish a small scale LNG facility at

 Stage approach leveraging off existing infrastructure - (1 mtpa initially) :

 Low capital cost (project financing benefits)

 Recognised technology

. Future growth (6 plus mtpa)

Project History

. Identify/Concept Stage – Completed

Multi-criteria port options assessment Concept/Technical Description Report Site selection within port Business Plan Securing site High level environmental site audit

Project History (Cont.)

. Early Pre-FEED Activities

 Engagement of Parsons Brinckerhoff

 Prepared and issued brief for LNG technology providers – Black & Veatch, Air Products, Linde, GE Saloff

 Brief prepared for maritime sub-consultant – jetty location

 Project Execution Plan completed

 Initial discussions with potential gas suppliers

 Initial discussions with gas pipeline owners

 Initial discussions with potential LNG offtakers

Site Location

Future LNG Storage Tank Area Why Port Bonython?

. Land : Minimal environmental significance Gently undulating nature Major industrial area – existing major industry Borders existing gas pipeline easement

. Deepwater very close to the shoreline . Sheltered waters of – vessel loading ops . Small community only – distance of 3.5km . Close to skilled workforce . Other major project approvals precedents . Close to Moomba - pipeline and SE Aust gas pipeline network. . Access to multiple gas basins– Cooper, Otway, Gippsland

Existing Gas Transportation Moomba to Adelaide Pipeline LNG Floating Storage Offshore Infrastructure - Jetty Schedule

. Major Approvals by mid 2015

. Pre-Feed complete end of 2014

. Feed complete end of 2015

. Financing Phase - January to June 2016

. Construction commences July 2016

. Construction and Commissioning complete early 2018 Project Highlights

. Very experienced owner’s team

. Parsons Brinckerhoff support/investment/expertise.

. Low Capital Cost – can accommodate higher gas prices

. Scalability (1mtpa to 6mtpa)

. Proximity to existing gas transport infrastructure with spare capacity

. Existing gas pipelines – spare capacity and/or cost effective capacity increase

. Access to multiple gas basins

. High approvability : No dredging or reclamations required Low environmental value of the site Precedent approvals for major projects Gas Supply

. Seeking HOAs with potential gas suppliers:

 Non-binding

 Agreement to work closely together over the next 24 months working up each other’s projects

 Intent to eventually transform into a long term, formal gas supply agreement prior to FID.

Investment Opportunity

. Project partner to assist with one or more of the following:

 Pre-FEED and FEED costs  Securing gas supply  Debt and equity funding for construction phase

Note: All engineering, environmental +project management by Parsons Brinckerhoff “at cost” for small equity stake or cash bonus at FID.

Questions?