LIQUEFIEDNATURALGASLIMITED

ASX:LNG

Liquefied Natural Gas Limited

PRESENTATION 5 Ord Street
West Perth WA 6005
AGM22NOVEMBER2010 +61 8 9366 3700
www.LNGlimited.com.au
 LNGLimited– AnOverview
ASXCode LNG

SharesonIssue 213million

MarketCapitalisation AUD121million(atAUD0.57/share)

CashReserves AUD14million(at31October2010),nodebt

T 5 Sh h ld
Top5Shareholders 31 0%
31.0%ownership
hi

Top50Shareholders 58.4%ownership

MajorShareholders CopulosGroup(9.2%)
Dart Energy Limited (7 5%)
DartEnergyLimited(7.5%)
PWBridgwood(6.2%)
FMBrand(6.0%)

KEY MESSAGES:
KEYMESSAGES: f TightCapitalStructure;
f Cashreservesadequatefortwoyears;
f Directorcommitmenttoshareholdervalue;
f Strongandexperiencedboardandexecutives.

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 LNGLimited– AnOverview
Businessfocus– LNGopportunitiesby:
MarketingOSMR®technologycompetitivebenefits;
AccessingandinfluencinggassupplyforLNGprojects;
IdentifyingLNGsiteswithassociatedinfrastructure.
OSMR®Technologymarketing:
Twogroupsundertakingdetailedduediligence;
OSMR®benefitsattractingglobalinterest.
GasSupply:
pp y
Strategicpositioningtoaccessgassupplyviacorporateandprojectparticipation;
ShareholdinginMetgascoLimited(ASX:MEL);
MOUsignedwithMELtostudygassupplyforGladstoneand/orBrisbane;
Shareholding in Oil Basins Limited (ASX: OBL);
ShareholdinginOilBasinsLimited(ASX:OBL);
HOAsignedtostudygassupplyforKimberleyLNG.
IdentifyingLNGsiteswithinfrastructure:
Fisherman’sLandingGladstonesitefitsbusinessfocus;
Gladstone LNG will be delivered why?
GladstoneLNGwillbedelivered–
18,000PJuncontractedgasresources:focusedonthreegassuppliers;
LNGbuyersavailable:focusedonthreepartners;
Businessmodelbenefitsenabledelivery.

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 BusinessModel
OSMR® liquefactiontechnologyiscentraltoLNGLimited’sstrategic
focusindevelopingLNGprojects

T h i l hi hli ht f LNG Li it d A
TechnicalhighlightsofLNGLimitedApproach
h B
BenefitsforLNGProjectDevelopment
fit f LNG P j t D l t

Smallerlandaccessrequirement
Simpleandefficientprocess
Usingprovenliquefactiontechnology
Lowequipmentcount
Useofprovenmembranetanktechnology
IncreasesabilitytostrategicallylocateLNGprojects
Potentialtositeclosertogassupply
Potentialtositeclosertoexistinginfrastructure
suchassheltereddeepwaterharbours androads
Highlyefficient
Lowconstructioncost
Easierinstallation
E i
Easieroperation&maintenance
ti & i t
Fastshutdownandstartup
Fasteronsiteconstruction
Lowerconstructioncostofaround50%
Faster construction by around 10 months
Fasterconstructionbyaround10months

OSMR ® Process
DevelopedandownedbyLNGLimited

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 TechnologyandOSMR®Benefits

OSMR®KEYDESIGNFEATURES
Cooling&
MixedRefrigerant
Compression Simplicityindesign,constructionandoperation

CoolGas Fasterbuild
1 Reducedcapitalintensity
Midscale
Locationflexibilityy

2 Reducedcapitalrequirement
Highefficiencyandlowemissions
ColdBox
ColdBox
Liquefaction Bettereconomics
PreCooling q Unit
f
Liquefaction Reduced emissions
Reducedemissions
Unit

Totalenergyefficiencyimprovementof30%
overconventionalLNGprocessesresultsfrom
OSMR®processinnovations:

Gasturbineinletaircoolingimprovesplant
MembraneTank 1 capacityby15%
StorageandShipping
Supplementarycoldboxcoolingimproves
2 plantcapacityandefficiencyby25%

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 HowisHighEfficiencyAchieved?

f USEAERODERIVATIVEGASTURBINES&EFFICIENTCOMPRESSORS
p y g y
 Improvesfuelefficiencyofgasturbineby25%
 Standardhighefficiencycompressors(87%polytropic efficiency)
 Nogearbox,nohelpermotor,singlestage(nointerstagecooler/scrubber)
 Aero’s alreadyusedinDarwinLNGProjectinAustralia
f USECOMBINEDHEATANDPOWER(CHP)TECHNOLOGY
 RecoversGTwasteheatsoLNGplantheatandpowerneedsaresubstantially“free”
 Commonlyusedinpowerindustryandingaspipelinecompression/powergeneration
f USEAMMONIAAUXILIARYREFRIGERATION
 RefrigerationpowerisprovidedbyCHPplantsoissubstantially“free”
 CoolsGTinletairtoimproveGToutputby15%
 CoolsMRandLNGstreamstoincreaseproductionby25% substantially“free”
 Ammoniaisacommonlyusedinindustrialandcommercialrefrigeration
 Commonlyusedfordirectinletaircoolingofgasturbinesinpowerindustry.

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 ProcessRiskMitigation
Numerousreviewscompletedbyindustryexpertsandrecognised
LNGcompanies
Generaloutcomeofreviews
X Processistechnicallysoundandbenefitsconfirmed
X Lowtechnicalriskduetointegrationofprovensystems

The OSMR® Processhasbeenreviewedby:

TheOSMR Process has been reviewed by:

1. FosterWheeler 4.Shell
2. CHIV 5.SKEC
3 CB&I
3. CB&I 6 W l P
6.WorleyParsons

Smallscale(proofofconcept)LNGplantusingammoniaprecooling
hasbeenoperatingsuccessfullyfor2yearsinKarratha
p g y y WA

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 CommercialBenefitsofLNGLtd’s
TechnologyandMethodology
Projectcostbreakdown(USD):
f Engineering $29m
f Procurement $210m
f Construction
C i $374
$374m
f Other(incl contingency) $107m
TotalEPC(1train) $720m
Marine Works
MarineWorks $85m
Additionaltrain $300m
Totalcostfor3.5mtpa $1,105m

Efficiencybenefit(2.5%more
LNGsales)at$10/MMbtu NPV10 $387m

EPCcostindexfor3.5mtpa
Projectcostusingcascade
orotherprocess>$600/tpa
$300/tpa
>$2,100m CommercialBenefitatFLalone
>$1 400m for 3 5mtpa
>$1,400mfor3.5mtpa

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 SummaryofBenefits
f Bestsolution
Best solution  Allaspectsoftheplantincludinggaspre
All aspects of the plant including gas pretreatment,
treatment,liquefaction,storage,
liquefaction, storage,
utilities,constructiontechniquesetcoptimised andintegrated.Numerousindustryexperts
(consultants,processlicensors,equipmentsuppliers,contractors,operatorsetc)engagedto
accomplishthebesttechnoeconomicsolution

f Liquefactionsystem singlemixedrefrigerantcomposition,flowrate andpressuresoptimised

tomatchcoolingcurveandbestfitstandardavailableequipment.ProvenSMRprocessused
withnumerousreferencesites

f Efficientprocess
ff only~6.5%offeedgas
l ff d usedasfuelfortheprocess.Modernhighefficiency
d f lf h d h h ff
gasturbines(MRcompressors)andCHPplantutilised forutilitypower

f Simpleprocess– lessequipmentitemsrequiredpertraincomparedtoalternativeprocesses.
This results in low capital and low operating/maintenance costs
Thisresultsinlowcapitalandlowoperating/maintenancecosts

f Hightrainavailability– parallelcompressors(MRandammonia)usedcomparedto
compressorsinseriesforalternativeprocesses

f Faststartuptime– only24hourscomparedtoupto72hoursforalternativeprocesses

f Modularconstructiontechnique minimises siteconstruction/commissioningwork,improves

qualityandreducescosts

f LNGstoragetanks– usesmembranetanksandconcreteslipformconstructiontechniqueto
minimise constructiontime(criticalpath)andreducecosts
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 GladstoneLNGProjectLocation
ProjectScale
CurtisIslandLNGProjects
Considered(mtpa)
OriginandConocoPhillips ~16
SantosandPetronas ~10
BGandothers ~12
ShellandPetroChina ~16

CurtisIsland

GLADSTONELNG
Fisherman’ssLanding
Fisherman Landing

LNGExport
ProjectScale
Fisherman'sLandingLNGProjects
Considered(mtpa)
LNGLimited ~6

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 WhatdowehaveinGladstone…..

AgreementtoLeaseexecuted
SuperiorSitewithaccesstoexistinginfrastructure
Siteareacanpotentiallyaccommodate4trainsatguaranteed6mtpa
Environmentapprovalreceived(2x1.5mtpa:OSMR® andmembrane
tank)
St
Stage1dredginganddisposalapprovalreceived
1d d i d di l l i d
FEEDcompletedbyLNGL/SKEC/LORanddetaildesigncommenced
FixedpriceEPCproposalsubmitted(lowcost)
A
AccesstoOSMR®
OSMR® andmembranetanktechnology
d b k h l
MostefficientLNGprocessby30%(~6.5%offeedgas usedforfuel)
LowestcapitalcostLNGprojectinGladstone(~US$300/tpa)
F
Fastestprojectscheduleof~30months(usually40+months)
j h d l f 30 h ( ll 40 h)
Constructionstarted($50mspent;5monthsofEPCprogram
completed)

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 WhatdoesGladstoneneed…..
Gassupplyplan
18,000PJ*riskedforecast2PreservesuncommittedinQueensland;
Key focus on CSG companies for gas supply of ~4,500PJ
KeyfocusonCSGcompaniesforgassupplyof 4,500PJfor3mtpa;
for 3 mtpa;
Gassupplyplannowfocusedonthreesuppliers,oneofwhomisMetgasco;
Gassupplyplantobesupportedbystrategicpartner(s).
*Companyinternalindependentreport
LNGstrategicpartners
Essentialcriteria
CommitmenttoGassupplyplan;understandingofCSGchallenges;
pp y p ; g g ;
Financialcredibility;understandingofcompanybusinessmodel;
EndbuyerwithexistingorplannedimportterminalorexistingLNGportfolio
buyer;
LNGbuyerforatleast1.5mtpa
f Focusedonthreepotentialpartners

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SlidesourcedfromMetgasco2010AGM:ManagingDirector’sreview
16November2010
LNGPlantModel

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Oursharedvision

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OurLogo:
Our Logo:
Wechosetheredantasourlogobecauseitisdistinctiveandboldand
representsstrength,energy,hardworkandperseverance– characteristics
weaimtomaketrademarksofourcorporateculture.

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 Disclaimer
The information in this presentation is not an offer or recommendation to purchase or subscribe for
securities in Liquefied Natural Gas Limited (ASX:LNG) or to retain any securities currently being held.
Thi presentation
This i does
d not take
k into
i account the
h potential
i l and
d current individual
i di id l investment
i objectives
bj i
or the financial situation of investors.

This presentation was prepared with due care and attention and the information contained herein is
current at the date of the presentation.
p

This presentation contains forward looking statements that are subject to risk factors associated with
the gas and energy industry. The expectations reflected in these statements are reasonable, but they
may be affected by a range of variables that could cause actual results or trends to differ materially,
including but not limited to: price and currency fluctuations,
fluctuations geotechnical factors,
factors drilling and
production results, development progress, operating results, reserve estimates, legislative, fiscal and
regulatory developments, economic and financial markets conditions in various countries, approvals
and cost estimates.

All references to dollars, cents or $ in this document is a reference to US Dollars, unless otherwise
stated.

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