Corporate presentation
Table of Contents 1. Liquefied Natural Gas What is Liquefied Natural Gas (LNG)? Natural gas within the global energy context. The value chain of natural gas. Demand and transport of natural gas. History and advantages of LNG. 2. Our partners Repsol and Gas Natural Fenosa (GNF): strategic agreements. Repsol in the LNG chain. Gas Natural Fenosa in the LNG chain. 3. Stream What is Stream? Mission and objectives. Positioning of Stream through its partners. Stream in numbers. Stream's information channels. 4. Fleet 2
3 Liquefied Natural 1 Gas
1 Liquefied Natural Gas What is Liquefied Natural Gas (LNG)? Natural gas is one of the cleanest and most environmentally-friendly sources of primary energy. It is composed of a group of hydrocarbons; methane, ethane, propane, butane and some other minor components, of which the main component is methane. It is also an economical and efficient form of energy that is capable of satisfying the demand in the domestic, commercial and industrial sectors. Potential customers are frequently located far away from production fields. In these cases, transport by gas pipeline is economically inefficient. To facilitate transport over large distances, gas is converted to a liquid state by lowering its temperature to -160ºC, which reduces its volume 600 times, once transform into Liquefied Natural Gas (LNG) it can be transported at atmospheric pressure on LNG vessels. When the LNG reaches its destination; the regasification terminals, its temperature is raised to recover its gaseous state, and it is introduced into the gas pipeline networks for distribution. 4
1 Liquefied Natural Gas Natural gas within the global energy context. Natural gas is the energy source with the largest mean annual growth (cagr* = 2% in the 2008-2035 period). The demand for gas will be determined mostly by its consumption to produce other energies; mainly electricity. Natural gas increases its weight in the world primary energy matrix (25% by 2035). * cagr= compound anual growth rate Oil Coal Gas Biomass Nuclear Hydro Other Renewable World Market Energy Use by Fuel Type 10% 1% 2% 6% Natural Gas 21% 2008 33% 27% 2035 12% 4% Coal 22% Oil 3% Gas 7% Nuclear Hydro Gas Natural Biomass 27% Other renewable 25% Source: EIA 2011 5
1 Liquefied Natural Gas The value chain of natural gas The natural gas chain consists of this hydrocarbon at different stages; from the time that it is found in a reserve, until it reaches the final consumer. Depending on how natural gas is transported, either in a gaseous or liquid state; the chain will consist of different stages. Gas exploration and production Transport by gas pipeline Distribution and marketing of natural gas Gaseous state Liquefaction Liquid state Maritime transport Regasification Graphic example of the value chain of Liquefied Natural Gas Upstream Midstream Downstream Liquefaction plant Regasification plant Distribution Separation process in the field Maritime transport Generation and industrial consumption 6 Production
1 Liquefied Natural Gas Demand and transport of natural gas Due to the increasing globalization of the world gas market, together with the improved efficiency of vessel transport, it is estimated that by 2035 LNG trade will represent 42% of gas trade between regions. Bcma 5.000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 0 7% 14% 79% 8% 15% 77% 74% 2008 2020 2035 Local Consumption Pipeline LNG 11% 15% Source: EIA 2011 7
1 Liquefied Natural Gas History and advantages of LNG Relevant milestones 1964 First liquefaction plant located in Algeria for subsequent marketing in the UK. 1969 First unloading of LNG in Spain (Barcelona). Liquefaction plant in Kenai (Alaska). 1970s New plants for liquefaction (Libya, UAE, Indonesia and Brunei) and regasification (USA). 1980s New liquefaction plants in Australia and Malaysia. Closure of plants in USA. The advantages of LNG vs. a gas pipeline It allows the reserves which are far away from consumption centres to be financialy viable. Increased security of supply LNG mitigates purchase risk through having various origins/producers. Flexibility It allows access to different markets. Costs LNG transport is more economical over long distances. 1990s New LNG producers. Qatar, Trinidad and Nigeria. $ Offshore gas pipeline Land gas pipeline LNG 2000s Liberalization of European markets. Qatar's mega-trains. Leading role of liquid markets. Development of new regasification terminals. New off-shore technologies. 8 2000 4000 6000 8000 km
9 2 Our partners
2 Our partners Repsol and Gas Natural: Strategic agreements Repsol and Gas Natural are both present in the entire value chain of natural gas. To take advantage of the synergies between them, they are signing the following agreements for: 1. New Upstream projects Exploration and Production Upstream Liquefaction Management revolves around joint ventures or liquefaction companies between: 2. Management of LNG contracts Maritime transport Midstream LNG Marketing and Trading Management revolves around a 50% joint venture between Repsol and Gas Natural Fenosa, called Repsol-Gas Natural LNG S.L.: 10
2 Our partners Repsol in the LNG chain Canaport Canaport 1st terminal in Canada. 75% equity. Exclusivity in the utilization of the capacity. Terminal with approximately 10 Bcma of regasification capacity. Status: In operation from 2009. Peru LNG Peru LNG Atlantic LNG Closest supplier to USA in operation. Liquefaction capacity of 20.7 Bcma (Repsol: 23%) Off-take of 4.1 Bcma. First Liquefaction plant in Latin America (100% Repsol off-take, 5.8 Bcma). Status: In operation from 2010. LNG vessels Liquefaction plant Regasification terminal 11
2 Our partners Gas Natural Fenosa in the LNG chain ~25 Bcma of NG/LNG to satisfy downstream needs, mainly from Trinidad & Tobago, Norway, North and West Africa and Middle East. Spain Italy Trieste Italy: 0.4 million customers Taranto Two regasification terminals in Italy (8Bcma each): Trieste: main Environmental permits obtained. Taranto: permitting stage. Puerto Rico Oman Liquefaction Plant (7.36% UFG) 12 Puerto Rico EcoEléctrica: 50% Gas Natural Fenosa. (CCGT + Regasification Terminal with 1 x 160,000 m 3 tanks, integrated with CCGT 540 MW Power Generation Plant and desalination unit. 100% rights of future regasification expansion. Egypt Liquefaction Plant (80%UFG). LNG vessels Reganosa Huelva Bilbao Barcelona Sagunto Spain: 5.2 million customers Cartagena 25% of total reserved regasification capacity.
13 3 Stream
3 Stream What is Stream? Repsol - Gas Natural LNG is a joint venture company between Repsol (50%) and GasNatural SDG (50%). It was created in 2005 and focuses on the supply, transport, wholesale marketing and trading of LNG. + = 14
3 Stream Mission and objectives Maximize the value of the partners' contracts through efficient management and marketing. Facilitate access by the partners to LNG supply sources, as well as strategic markets. Fleet management efficiency, thereby maximizing its level of utilization. Basic objectives Efficient management of the partners' portfolio of LNG contracts. Provide the partners with the LNG volume that they need to develop their markets and projects. LNG Marketing of the integrated projects in which the partners may have a shareholding. Fleet management according to the partners' needs. Support the partners in developing new integrated and regasification projects. 15
3 Stream Positioning of Stream through its partners Stream is one of the main LNG operators in the world thanks to its partners' positioning. Mexico Southern USA Canaport P. Rico France Spain Italy Libya Middle East China / Japan / Korea Atlantic LNG West Africa Peru LNG Supply point Delivery point 16
3 Stream Stream in numbers Managed LNG volume ~24 Bcma. Fleet 17 LNG vessels: 2,307.0 m 3 Size flexibility: 71,500-173,800 m 3. Staff Approximately 90 professionals. 17
3 Stream Stream's information channels Web page www.streamlng.com Contact info@streamlng.com Address Avenida de América, 38, floors 11 and 12 28028 Madrid - Spain Telephone +34 91 589 9857 Fax +34 91 356 2483 18
19 4 Fleet
4 Fleet managed by Stream Fleet 20
4 Fleet managed by Stream Castillo de Villalba Catalunya Spirit Norman Lady 21
4 Fleet managed by Stream SCF Arctic SCF Polar 21 Polar Spirit
4 Fleet managed by Stream Bilbao Knutsen Hispania Spirit Madrid Spirit Sestao Knutsen Ibérica Knutsen 22
4 Fleet managed by Stream Barcelona Knutsen Valencia Knutsen Sevilla Knutsen 24
4 Fleet managed by Stream Castillo de Santisteban STX Frontier Ribera del Duero Knutsen 25
Thank you visit www.streamlng.com This presentation is the property of Stream. Both its thematic content and its graphic design are for the exclusive use of its personnel. Copyright Stream