LNG Producer-Consumer Conference
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LNG PRODUCER-CONSUMER CONFERENCE TOKYO, JAPAN NOVEMBER 2016 GLOBAL GAS MARKET bcm NATURAL GAS CONSUMPTION +32% 5000 4500 +27% LNG import 4000 +91% 3500 +22% Pipeline import +79% 3000 +32% 2500 2000 Own production 1500 1000 2005 2015 2030 We expect LNG market to double between 2015 and 2030 Source: NOVATEK 2 DEMAND — KEY POINTS OF LNG GROWTH MTPA 203 203 NORTH-EAST ASIA 203 GLOBAL LNG DEMAnd 154 • Japan 154 • China 2015 2030 154 • Korea 83 24783 MTPA 492 MTPA • Taiwan 67 83 67 50 50 36 NEW MAR67KETS 50 • Bangladesh16 36 36 6 16 • Pakistan 203 2015 20306 201516 2030 6 2015 2030 2015 2030 2015 2030 2015 2030 2015 2030 2015 2030 • Morocco 1542015 2030 2015 2030 North-east2015 2030 2015 2030 Europe New markets Asia • Philippines • Myanmar 83 67 • Thailand 50 • Vietnam 36 28 16 • Kuwait 14 6 2015 2030 2015 2030 2015 2030 2015 2030 • Singapore 2015 2030 India • Indonesia Latin America • Malaysia Demand, MTPA Each of the specified regions is featured Demand IHS by different consumption drivers and different Demands FGE, Oxford TER, statement of the Indian government demand patterns and quality properties 3 PRICING IN THE OLD AND NEW ENERGY PARADIGMS OLD NEW MMtpa LNG IN BUNKERING And PERIOD 20 years on average 10 years on average 30 FORMULAS AND INDICES Oil indexed Mix: gas, oil, hubs By take-off, re-direction, FLEXIBILITY Limited destination VOLUMES Large (2~3 mmt) Small (0.5-1.5 mmt) 2 Arbitrage between Asia PRICE LEVELS No arbitrage and Europe 2015 2030 Source: IHS, Lloyds MMtpa LNG TRADE BY CONTRACTUAL LENGHT Unit GROWTH IN USE OF FSRU 300 30% 40 % SPOT/SHORT-TERM 250 25% (RIGHT) 200 20% 22 150 15% LONG-TERM 100 10% MEDIUM-TERM 50 5% 0 0% SPOT/SHORT-TERM 2010 2 011 2012 2013 2014 2015 2016 2020 Source: IHS Energy, 2015 Source: Energy Maritime association 4 409 409 409 SUPPLY — KEY POINTS OF LNG GROWTH 192 MTPA 192 192 409 119* 409 93 89 102 71.5 77 33 119* 1.3 63.3 9.6 119* 93 89 102 93 89 2015 2030 102 71.52015 2030 2015 2030 77 2015 2030 2015 2030 2015 71.5 77 33 Russia 192 1.3 63.3 9.6 33 1.3 63.3 9.6 under construction 2015 2030 192 2015 2030 2015 2030 2015 2030 2015 2030 2015 2015 2030 2015 2030 2015 2030 2015 2030 2015 2030 2015 USA Qatar 119* 93 119*89 102 93 71.5 89 77 102 3371.5 77 1.3 63.3 9.6 63.3 33 2015 2030 2015 2030 1.32015 2030 9.62015 2030 2015 2030 2015 2015 2030 2015 2030 2015Africa2030 2015 2030 2015 2030 2015 Australia * NOVATEK estimates Source: IHS 5 YAMAL LNG • LNG Plant located in Sabetta, north-east of the Yamal Peninsula, Russia • South Tambey Gas-Condensate Field: exploration and development license until 2045 • 2P PRMS reserves: 926 bcm of gas and 30 mmt of condensate RUssiAN FЕDERAtiON • Liquefaction capacity: 16.5 mmt of LNG (3 trains) and 1.2 mmt of stable gas condensate pa SHAREHOLDERS KEY FIGURES YAMAL LNG SRF Volume p.a. >16.5mmt / 21bcm 9.9% Overall completion status – 71%, Status Total including 86 % for train1 20.0% NOVATEK 50.1% Total Capex US$27bln CNPC Destination Asia 20.0% Country project Russia, China, France, Italy, participants Sweden, USA, Japan Source: NOVATEK 6 InTERNATIONAL AIRPORT RUssiAN FЕDERAtiON 7 SEA PORT RUssiAN FЕDERAtiON 8 YAMAL LNG RUssiAN FЕDERAtiON 9 OUR MAJOR CONSTRUCTION PROJECTS 28.7 – 33 mmt 16.5 mmt 11 mmt Yamal LNG 16.5 mmt Yamal Sabetta 5.5 mmt Yamal LNG LNG 3 Train Arctic LNG Utrenneye Arctic Yamal LNG 5.5 mmt field LNG 12 –16.5 mmt 2 Train Yamal LNG 5.5 mmt 1 Train 5.5 mmt RUssiAN FEDERAtiON 2017 2018 2019 2022 ‒ 2025 10 KOLAR YARD — A YARD TO PRODUCE GBS-BASED LNG PLANTS Camp for up to 10.000 people Dry docks Process modules 2x (415х175 m) fabrication workshops 50 нectares (up to 100.000 tpa) TARGET: Concrete manu- facture acHIEVING 180.000 m3/ annum OptIMAL CAPEX PER TON OF LNG the Barents sea Belokamenka Reinforced concrete structures workshops Murmansk Gydan peninsula Belokamenka 11 NOrtHerN Sea ROUTE 5 600 km NORTHERN SEA ROUTE LNG LNG 9 200 кm 13 300 кm Murmansk 16 days Sabetta Hamburg Yamal LNG Capacity Vladivostok 16.5 MTPA JAPAN Yokohama 22 000 кm Cairo Shanghai 25 500 кm Suez Canal 33 days Singapore Source: NOVATEK, Suez Canal Authority EffICIENT ALTERNATIVE TO THE SUEZ CANAL 12 FIRST LNG TANKER (ARC7) FOR YAMAL LNG COMMENCED OPERATIONS IN NOVEMBER 2016 13 FLEET OF NUCLEAR POWERED ICEBREAKERS NOW new atomic icebreaker 1 «Arctic» (60 MWt) launched COMING 2 more 14 FUTURE OF LNG AT YAMAL And GydAN PENINSULA SOUTH AMERICA EUROPE Yamal group JAPAN AFRICA CHINA SEAPOrt INDIA SABetta Gydan group NOVATEK • 1ST LNG project start-up in 2017 • 2ND LNG project start-up in 2022 – 2025 LNG PRODUCTION POTENTIAL IN THE YAMAL AND GYDAN PENINSULAS IS OVER 78 MTPA 15.