PETRONET LNG LIMITED

OVERVIEW
Global & Indias Primary Energy Consumption Scenario Indias Gas Scenario, Infrastructure & Prices Role of LNG in India About Petronets Dahej & Kochi Terminals New Initiatives Performance Corporate Social Responsibility

PRIMARY ENERGY PER CAPITA CONSUMPTION

Source : BP Statistical Review June 2010

WORLD VS. INDIAN ENERGY SCENARIO

WORLD
5% 7% 29% 24% 34%
Oil Gas Coal Nuclear Hydro

1%

5%

INDIA
32%

Oil Gas Coal Nuclear Hydro

52%

10%

Source : BP Statistical Review, June 2010 4

INDIAs CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO

400.0 350.0 300.0 250.0 200.0

381.0 341.1 306.4 253.4 202.9 178.9 191.6 155 198.4

Supply
(In MMSCMD)

Demand

150.0

146
100.0 50.0 0.0 2010-11

2011-12

2012-13

2013-14

2014-15

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 Power 2010-11 Fertilizer 2011-12 City Gas 2012-13 Petchem-Refinery 2013-14 Sponge Iron 2014-15

2010-11

2011-12

2012-13

2013-14

2014-15

Power Fertilizer City Gas Petchem-Refinery Sponge Iron

87.71 49.39 13.70 24.44 3.71

149.11 57.48 17.53 25.42 3.82

185.52 68.08 22.44 26.43 3.93

212.73 68.08 28.72 27.49 4.05

243.34 68.08 36.76 28.59 4.17

Total

178.94

253.36

306.41

341.08

380.95

Source: Mercados Analysis, 2010

INDIAs GAS INFRASTRUCTURE

PREVAILING GAS PRICES

PRODUCER

LAND FALL PRICE US$/MMBTU

MARKETING MARGIN (US$/MMBTU)

CENTRAL SALES TRANSMISSION TAX CHARGES 2% (US$) US$/ MMBTU

SERVICE TAX 10.30% (US$)

DELIVERED PRICE TO CUSTOMERS (US$/MMBTU)

ONGC/Oil APM (including Royalty) ONGC C Series (including Royalty) PMT Other JVS (Ravva) RLNG (Approx)* Reliance KG6

4.20 5.25 5.65 3.50 6.50 4.20

0.12 0.11 0.11 0.17 0.14

0.08 0.10 0.12 0.07 0.15 0.09

0.60 0.60 0.60 0.60 0.60 1.80

0.06 0.06 0.06 0.06 0.06 0.19 8

4.94 6.13 6.54 4.34 7.49 6.42

Subject to change as per Company & GOI Policy * - Depending on prevailing market price

THE LNG CHAIN

DOWNSTREAM
SUBSURFACE DEVELOPMENT Production
Liquefaction plant
Separation Gas Treatment

UPSTREAM
SURFACE DEVELOPMENT

LIQUEFACTION, STORAGE AND LOADING

RECEPTION, STORAGE & REGASIFICATION SHIPPING

TRANSMISSION & DISTRIBUTION

LNG storage Gas Transport

Loading

Unloading

Regasification plant Gas LNG storage transmission

Gas Reserves
Gas Liquids storage

For export or local use

Ownerfield & Gas / Operator LNG Producer extraction

LNG Production

Cryogenic vessels

Regasification

Transportation

Project Facilities to be Constructed Natural gas extraction & purification. LNG liquefaction trains with adequate capacity . LNG Storage capacity. LNG Loading facilities. LNG Carrier

LNG unloading, storage & regas terminal . Gas transportation network

LNG IN INDIA
High Power group study Hydrocarbon Vision 2025 laid exploration & production and demand supply scenario of oil & gas with GDP growth of 5-6%. Current GDP growth of 79% translate into overall energy demand growth at CAGR of 7.50%. Given Indias growing energy requirements and 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

Dahej LNG Terminal of 10.0 MMTPA managed by Petronet LNG Limited. Hazira LNG Terminal of 3.5 MMTPA operated by Shell & Total. LNG terminal at Dabhol of 2.5 MMTPA likely commissioning 2012. Petronets Kochi of 5.0 MMTPA likely commissioning 3rd Qtr., 2012. Presently, Indias LNG import capacity is around 13.5 MMTPA through its two terminals & meeting approx. 20% of total gas supply of the country.
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PETRONET LNG LIMITED

Petronet LNG incorporated on April 2, 1998 to play an important role in the Hydrocarbon Sector to enhance energy security of the Country.
50% Equity held by Oil & Gas PSUs (ONGC, IOC, BPCL and GAIL ) 10% Equity held by GDFI (part of GDF SUEZ) 5.20% & 34.8% held by ADB & Public respectively.

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DAHEJ LNG TERMINAL

Located at West coast, State of Gujarat (India) in the Gulf of Cambay. Dahej terminal commenced operations in 2004 with the nameplate capacity of 5.0 MMTPA. Capacity expanded to 10.0 MMTPA in July, 2009. Terminal comprising : 2.5 KM long Jetty with unloading facilities Four LNG storage tanks (of 148000 CBM each) Regas facilities Truck loading facilities for onland sales. 7.5 MMTPA sourced through Long Term Contract with RasGas, Qatar with back to back sales arrangement with GAIL, IOCL & BPCL. Additional LNG being sourced through Spot /Short Term Contracts & sold to Offtakers/ Bulk Buyers. Connected to major trunk pipelines HBJ & DUPL of GAIL and Gujarats GSPL Network.
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DAHEJ LNG STORAGE TANKS

13

DAHEJ REGAS FACILITIES WITH AIR-HEATER AIR-

DAHEJ FACILITIES
STV JETTY WITH LNG SHIP

JETTY WITH TUG BOATS

PETRONETs SHIPPING FLEET

RAAHI ASEEM

DISHA

SECOND LNG BERTH AT DAHEJ

Existing marine facilities adequate for 10.5 11.0 MMTPA of LNG. Developing second LNG Jetty to enhance capacity of Dahej Terminal.
New Jetty helps mitigating risk of operating on single Berth Facilitating berthing of tankers up-to 260,000 CBM (Q-Max)

Scheduled Commissioning III Qtr, 2013. Estimated Investment US$ 200 Million.

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LNG TRUCK LOADING FACILITIES DAHEJ

WEIGH BRIDGE

Truck Loading facility at Dahej terminal was commissioned in August 09, 2007 as a Pilot Project. Currently about 4-5 trucks are loaded on daily basis & total of around 2500 Trucks have been loaded till date. Facility can handle 2500 loadings / Yr. Presently LNG (by road tanker) is being sold to limited consumers in Western region. Fast developing market with several new consumers (up to 800 KMS) are being lined up for off-take of LNG for industrial and city gas use.

VAPORISATION FACILITIES

KOCHI LNG TERMINAL

LNG Terminal part of newly created Special Economic Zone & Petronet one of the Codevelopers. Capacity - 5.0 MMTPA. Tied up 1.44 MMTPA LNG from Exxon Mobils Gorgon Venture in Australia. Work for building two LNG Storage Tanks awarded to IHI, Japan. Work related to Regasification Facilities awarded to CTCI, Taiwan. Work related to Marine Facilities awarded to Afcons Infrastructure Limited. Progress on schedule, overall completion more than 90%, Scheduled Commissioning in 3rd Qtr. , 2012.

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KOCHI - TANK 101 & 102

19

KOCHI - MARINE FACILITIES

20

CONSTRUCTION ACTIVITIES KOCHI TERMINAL

SOLID CARGO PORT PROJECT- DAHEJ PROJECT-

Petronet holds 26% Equity in Joint Venture Company with the Adani Group to develop a Solid Cargo Port in Dahej (Adani Petronet (Dahej) Port Pvt. Limited). Capacity to handle 20 MMTPA of dry bulk cargo/year (Coal, Steel and Fertilizers). Phase I commissioned in September, 2010 and Phase II mechanical completion scheduled shortly. Arial view of Vessel at Berth No.1

Project cargo on 2.4 KM Jetty Approach

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INTEGRATED POWER PLANT AT DAHEJ

Completed Detail Feasibility Report for a 1200 MW Power Plant of 3 x 356 MW (total 1068 MW) , Single shaft CCGT. Land Acquisition & Environment Clearance in process , market analysis being carried out. Anticipated Project cost of about US$ 870 Million. Project to be domiciled on the Balance Sheet of Petronet. Primary fuel for Project to be sourced from international markets. Aggregate gas requirement of 1.01.1 MMTPA. Anticipated Implementation time-frame of 36 months from the FID.

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DIRECT RLNG MARKETING

Petronet plans to foray into Direct Marketing by focusing on the following areas:
Entered into direct RLNG marketing by signing HOA with bulk end consumer in Power producers, Industrial consumers , Fertilizers Producers etc

LNG/LCNG i.e. LNG through Trucks and supplies at LNG hubs, customers premises in regions not serviced by pipelines.

LNG/RLNG trading on International and domestic platform.

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FINANCING STRUCTURE (US$ MILLION)

Particulars

Dahej Terminal

Kochi Terminal

2nd Berth at Dahej

Total

Shareholders Fund Equity Capital/Internal accruals/Premium Debt Total Means of Finance

250

270

60

580

550 800

630 900

140 200

1320 1900

*Petronet generates approx. US$ 125 Million cash from its existing operations. After

servicing shareholders, the balance will be used to finance Expansion Projects.

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PERFORMANCE GRAPH

SALES (TBTU)
450 700

NET WORTH (MILLION USD)

412

400

384

600

583

350

322 287 247

321

500

486 431

300

250

400

352
300

200

277 233 191

150

125

200

100 100 50 0 2004-05 2005-06' 2006-07 2007-08 2008-09 2009-10 2010-11 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

PERFORMANCE GRAPH

TURNOVER (Million USD)

3000 160

PAT (Million USD)

2849
140

135

2500

2305

120

113 103

2000

100

1772
80 1500

88 68
60

1425 1198

42
1000

834

40

20 500

423
0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

-6

0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

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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.

Thank You
Petronet LNG Limited GIDC Industrial Estate, Plot No. 7/A, Dahej, Taluka Vagra, Distt. Bharuch Gujarat - 392130

Dahej Plant

Petronet LNG Limited, 1st Floor, World Trade Centre, Babar Road, Barakhamba Lane, New Delhi 110001
www.petronetlng.com For any other info. : akchopra@petronetlng.com Ph: 91-11-23411411

Corporate Office

Petronet LNG Limited Survey No. 347, Puthuvypu P.O. , Kochi, Kerala - 682508

Kochi Site