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<Title of Presentation>
By: <Author Name>, <Organization>
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17
th
INTERNATIONAL CONFERENCE & EXHIBITION
ON LIQUEFIED NATURAL GAS (LNG 17)
Singapore:
Emergence of a new LNG market
By: Dr. Anthony Barker, BG Group
16 April 2013


17
th
INTERNATIONAL CONFERENCE & EXHIBITION ON
LIQUEFIED NATURAL GAS (LNG 17)

Legal notice
The following presentation contains forward-looking statements concerning BG Group plcs
strategy, operations, financial performance or condition, outlook, growth opportunities or
circumstances in the countries, sectors or markets in which BG Group plc operates. By their
nature, forward-looking statements involve uncertainty because they depend on future
circumstances, and relate to events, not all of which can be controlled or predicted. Although
the Company believes that the expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will prove to have been
correct. Actual results could differ materially from the guidance given in this presentation for a
number of reasons. For a detailed analysis of the factors that may affect our business,
financial performance or results of operations, we urge you to look at the Principal risks and
uncertainties included in the BG Group plc Annual Report & Accounts 2011. Nothing in this
presentation should be construed as a profit forecast and no part of this presentation
constitutes, or shall be taken to constitute, an invitation or inducement to invest in BG Group
plc or any other entity, and must not be relied upon in any way in connection with any
investment decision. BG Group plc undertakes no obligation to update any forward-looking
statements.
No representation or warranty, express or implied, is or will be made in relation to the
accuracy or completeness of the information in this presentation and no responsibility or
liability is or will be accepted by BG Group plc or any of its respective subsidiaries, affiliates
and associated companies (or by any of their respective officers, employees or agents) in
relation to it.

Singapores challenges
Source: Wood Mackenzie, November 2012 & EMA Singapore Energy Statistics Report 2012
75.7%
20.3%
4.0%
2011 gas demand
Power
Industry
Other
84.1%
15.9%
2011 gas supply
Indonesia
Malaysia
78.0%
18.4%
3.6%
2011 fuel mix for
electricity generation
Natural Gas
Petroleum Products
Others
Power
Industry
Other
Indonesia
Malaysia
Natural gas
Petroleum products
Others
Consolidating demand
Marketing multiple gas sales
contracts
Inventory management and
24/7 commercial operations
Market development
Sources: BG Group estimates 2012,Schlumberger Business Consulting, 2009
Singapore LNG demand
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2013 2014 2015 2016
m
t
p
a
Meeting Singapores challenges
Source: BG Group, 2012
Aggregator
(BG Group)
Terminal owner
(Singapore LNG)
Energy Market
Authority of
Singapore
Gas buyers
LNG supplier
(BG Group)
BG Groups LNG marketing
Henry Hub
m
t
p
a

Singapore
Source: BG Group Strategy Presentation, February 2012
Global assets, supply and markets
* Exclusive right to supply Potential liquefaction
Existing long term supply source Liquefaction under construction
Equity position
Existing import capacity
Long term customer
UK
USA
Nigeria
Egypt Trinidad
& Tobago
EG
Chile
Singapore*
Australia
Tanzania
Canada
China
Japan
Brazil
India
Pipeline gas moratorium
Vesting contracts
SLNG step-in and
underwriting
Policy and regulatory support
EMA initiatives and policies
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q
2

2
0
1
2

Q
3

2
0
1
2

Q
4

2
0
1
2

Q
1

2
0
1
3

Q
2

2
0
1
3

Q
3

2
0
1
3

Q
4

2
0
1
3

Q
1

2
0
1
4

Q
2

2
0
1
4

Q
3

2
0
1
4

M
W

Incremental gas generation
capacity
Source: Tri-Zen Consulting, BG Group estimates, May 2012
Long-term sales
3 mtpa exclusive franchise
to supply Singapore
Approx 2.6 mtpa
contracted with 10 20
year supply periods
10 gas buyers and ~15
GSAs
Long-term sales projection
Source: BG Group, November 2012
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
3.2
Q
1

2
0
1
0

Q
4

2
0
1
0

Q
3

2
0
1
1

Q
2

2
0
1
2

Q
1

2
0
1
3

Q
4

2
0
1
3

Q
3

2
0
1
4

Q
2

2
0
1
5

m
t
p
a

Singapore franchise state of play
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2
0
1
3

2
0
1
4

2
0
1
5

2
0
1
6

2
0
1
7

2
0
1
8

2
0
1
9

2
0
2
0

2
0
2
1

2
0
2
2

2
0
2
3

2
0
2
4

2
0
2
5

2
0
2
6

2
0
2
7

2
0
2
8

2
0
2
9

2
0
3
0

2
0
3
1

2
0
3
2

2
0
3
3

Remaining Sales (3mtpa Franchise Forecast)
Contracted Long-term Sales
m
t
p
a

Source: BG Group, November 2012
Contracted long-term sales
Remaining sales (3 mtpa franchise forecast)
Long-term sales
BG Group has contracted at
three long-term price tranches
Singapores power market
is now well supplied with
long-term volumes
Buying interest seen from
2018 onwards
Replacement of expiring pipeline
gas import contracts
Demand growth driven by
industry

0.0
2.0
4.0
6.0
8.0
10.0
12.0
2
0
1
3

2
0
1
5

2
0
1
7

2
0
1
9

2
0
2
1

2
0
2
3

2
0
2
5

m
t
p
a

Incremental demand
Sumatra pipeline gas replacement
Natuna pipeline gas replacement
Malaysia pipeline gas replacement
BG Group franchise
Short-term supply security
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2013 2014 2015
m
t
p
a

Source: BG Group, December 2012
Available volumes for short-term sales
BG Group committed volumes
Potential for short-term sales
Short-term sales
79%
21%
2013 volumes Through 2012, BG Group worked
closely with the regulator (EMA) to
develop:
Standardised master short-term GSAs
Stand alone short-term GSAs
Short-term interest driven by:
Ramp up and commissioning
requirements
Operational concerns
Commercial opportunities to access
spot LNG
Pipeline gas displacement
Power market opportunities
Long-term sales
Short-term sales
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
0.2
GSA1 GSA2 GSA3 GSA4 GSA5 Cargoes
m
t

Consolidating demand
Aggregator's short-term and spot GSAs
1

c
a
r
g
o

2

c
a
r
g
o
e
s

3

c
a
r
g
o
e
s

Market development
Source: BG Group, November 2012
Singapore
LNG
inventory
Term
LNG
Fuel oil &
oil products
Indonesia
piped gas
Malaysia
piped gas
Spot LNG
Electricity
procurement
100
150
200
250
300
2
0
0
5

2
0
0
6

2
0
0
7

2
0
0
8

2
0
0
9

2
0
1
0

2
0
1
1

2
0
1
2

2
0
0
5

=

1
0
0

Relative pricing of
fuel oil & Brent

Brent Fuel oil
Singapore market overview
-
2
4
6
8
10
12
14
16
2
0
1
0

2
0
1
1

2
0
1
2

2
0
1
3

2
0
1
4

2
0
1
5

2
0
1
6

2
0
1
7

2
0
1
8

2
0
1
9

2
0
2
0

2
0
2
1

2
0
2
2

2
0
2
3

2
0
2
4

2
0
2
5

m
t
p
a

Sources: BG Group estimates, November 2012 & EMA procurement framework consultation paper, March 2012
Aggregator franchise long-term contracted supply
Long-term supply opportunities (EMA consultation paper)
Aggregator franchise 3 mtpa
Short-term supply opportunities
Gas demand (EMA consultation paper) Terminal max throughput facilities under construction
Pipeline gas displacement
LNG is competitive against
pipeline gas in Singapore
Spot LNG prices regularly
support short-term
displacement of pipeline gas
with LNG


Pipeline gas prices
S
p
o
t


L
N
G


p
r
i
c
e
s

Pipeline gas
displacement
Market development LNG reloads
Physical reload capability
enables break bulk
trans-shipment
Demand side interest in LNG
reloads for various regional
markets
Early stage assessment of
LNG bunkering under way
SLNG full development
Source: EMA.gov.sg
Conclusions
Close cooperation among
BG Group, SLNG and EMA
Aggregator model tailor made
to meet Singapores gas
market challenges. It could be
adapted to introduce LNG to
new markets
BG Group is committed to
ongoing development of
Singapore gas market