The LNG storage business

and associated costs

Enags Gas Assets General Management
 Index
About Enags LNG storage &
and its LNG capacities associated costs

New LNG terminals

Onshore vs Offshore
2
 45 years experience
Leader in natural gas and LNG infrastructures
A midstream
Major International player as a result of our technological expertise, gas infrastructure construction skills, highly effective
company operations and maintenance programs and sound financial structure.

European Union-accredited
independent TSO

Top natural gas transmission company

in Spain
Technical Manager
of Spain's Gas System

Ownership structure

5%

95%

Free Float SEPI

3
 A worldwide reference with more than 45 years experience

The development of the Spanish gas system is based on LNG.

2003
Bilbao LNG Terminal
2006
1969 1988
Huelva LNG Terminal
Sagunto LNG Terminal 2016
2007
1989 Mugardos LNG Terminal
Barcelona LNG Terminal Cartagena LNG Terminal

1996 2006
I.P. Tarifa I.P. Irn 2011
1993 I.P. Almera
PAST PRESENT I.P. Larrau
FUTURE

LNG Terminal

Underground Storage

Pipeline

Infrastructure of other operators

4
 Enags across the world
Spain
6 LNG terminals (+2 in development)
~11.000 km high pressure pipelines
3 underground storage facilities

Sweden
Mexico Swedegas
TLA Altamira LNG Terminal
Soto La Marina Compressor Station
Morelos Pipeline

Peru
Transportadora de Gas del Per (TgP) Greece,
Compaa Operadora de Gas del Amazonas (Coga) Albania
South Peru Gas Pipeline and Italy
Trans Adriatic Pipeline (TAP)

Chile
GNL Quintero LNG Terminal

5
 Enags LNG capacities Bilbao LNG Terminal (40%)
Storage: 450,000 m3 GNL
Unloading: 267,000 m3 GNL
El Musel LNG Terminal Reloading ratio: 3,000 m3/ h
Storage: 300,000 m3 GNL
Unloading: 267,000 m3 GNL
Reloading ratio: 6,000 m3/ h 2 3 Barcelona LNG Terminal
Storage: 760,000 m3 GNL
Unloading: 267,000 m3 GNL
Reloading ratio: 3,500 m3/ h
TOTAL CAPACITY worldwide
6
LNG storage 3,950,500 m (Includes
Sagunto LNG Terminal
634,000 m in Mex/Chi) Storage: 600,000 m3 GNL
4
Unloading: 266,000 m3 GNL
Reloading ratio: 3,000 m3/ h
Regasification: 8,675,000 m(n)/h
(Includes 1,425,000 m/h in Mex/Chi) 5
5
Cartagena LNG Terminal
Storage: 587,000 m3 GNL
Unloading: 267,000 m3 GNL
Reloading ratio: 3,500 m3/ h

Huelva LNG Terminal

Storage: 619,500 m3 GNL
Unloading: 173,400 m3 GNL
Reloading ratio: 3,690 m3/ h

6
 A worldwide reference with more than 45 years experience
Capacity
Spain:
4 LNG terminals 100% owned

2,266,500 m3 LNG storage capacity

5,450,000 m3(n)/h regasification capacity
2 partially owned LNG terminals

1,050,000 m3 LNG storage capacity

1,800,000 m3(n)/h regasification capacity
TOTAL CAPACITY in Spain
3,316,500 m LNG storage capacity
7,250,000 m(n)/h regasification
capacity
7
Flexibility
Since 1969, more than
10,000 downloadings
500,000 trucks loaded
260 Reloadings (gassing up &
cooling down included)
1970: First truck loading operation
1997: First reloading operation
2012: First full Qmax download at
Barcelona LNG Terminal
2014: 60% of the loading operations
wordwide in Spain
Technology Development
Renewable power generation:

8.7 MW in LNG Terminals

4.4 MW in Transmission network
infrastructures
Around 20%-30% of the total energy
consumption
Integration with industrial processes
of partners
Integration with a CCGT process at
Cartagena LNG Terminal and cold
recovery for industrial use at Barcelona
LNG Terminal
 LNG Trading Hubs
2015

LNG liquidity TWh %

Third Party Access LNG
LNG HUB
Free capacities HUB PVB 144 33%
Mugardos 11 3%
BBG 60 14%

LNG Sagunto 63 14%

HUB
Barcelona 99 23%

60
active operators
LNG
LNG
HUB
Cartagena

Total LNG
UGS
Huelva
9
47
288
6
2%
11%
66%
2%
and more than HUB
LNG
Total 438 100%

100
HUB

registered
8
 The flexible LNG terminal concept

1
Trucking
Traditional services

Small scale
3
Big scale Parking

2
LNG Railroad
1
Regasification

3
1
Small scaling
Re-export
4 2
Bunkering Transhipment
9
 Energy Efficiency Operational Excellence MIDstream facilities have the capability to be the
best player for maximize the competitiveness of
GN into the value chain

UPstream MIDstream DOWNstream

SMALL
COST HIGH (+1-3% CAPEX) HUGE

SHORT
TIME MEDIUM (13 years) LONG
A FEW MORE
PLAYERS FEW (over the whole
THE WORLD!
10 (impact) (spot) downstream) (but local)
 Big Scale Logistics: Reloadings
Re-exports loaded by reloading country
Re-exports loaded by reloading N Vessels
in 2015 (6.4 Mt)
country in 2014 (6.4 Mt) N Vessels
Spain, 24
3% 1%1% 5% 4% Belgium, 12
4% Spain, 67
6%
6% France, 6
Belgium, 23 28%
France, 10 4% Netherlands, 15
60%
7%
Netherlands, 9 6% Portugal, 5

Portugal, 7 South Korea, 4

South Korea, 3 5% USA, 4

USA, 1 India, 4
18%
Brazil, 2 16% Singapore, 3

18% United Kingdom, 3

8%

Spanish Reloadings (GWh & N Vessels) Source: International Group of Liquefied Natural
60.185 Gas Importers

31.802 x1,9
22.697
x1,4
x0,3 15.500
8.091 x2,
24 8 42 52 70 25
2011 2012 2013 2014 2015
Source: Web Enags
11 Including reloading and coool-down operations
 Small Scale LNG Logistic Model

REGASIFICATION SATELLITE PLANTS LOCATION

1,067 Satellite Plants

~34,400
LNG trucks loaded per year

12 LNG cargoes

International leader in LNG truck loading

Destinations: more than 59 across Europe

(France, Italy, Portugal, Switzerland,
Macedonia)

Demand coverage: 1,400 GWh/year

12
 Index
About Enags LNG storage &
and its LNG capacities associated costs

New LNG terminals

Onshore vs Offshore

13
 LNG Import Terminal Configurations: Technical Description

Configuration* LNG Storage Jetty Onshore Facility Pipeline Regasification

Onshore Full LNG Onshore
Onshore
Regasification containment tank Single berth regasification Onshore
pipeline
Terminal 180,000 m terminal
Onshore
FRSU Single or dual berth +
FSRU regasification Subsea pipeline FSRU
173,000 m Breakwater not required
facility
Onshore
FSU + Offshore FSU Single or dual berth + Subsea pipeline Offshore
regasification
Regasification 173,000 m Breakwater not required (Jetty based)
facility
Onshore
FSU + Onshore FSU Single or dual berth + Cryogenic piping
regasification Onshore
Regasification 173,000 m Breakwater not required over the trestle
terminal

* Site selection depends on navigational safety, port infrastructure and marine operations.

14
 LNG Import Terminal Configurations: Pros & Cons
CONFIGURATION PROS CONS OTHERS RECOMMENDATION
Expandable flexibility
Higher levels of availability
Requires long-
(99,5%)
term investment
Well proven tenchnology
Onshore More adequate More recommended for
Excellent safety record Land and port facilities required
Regasification to handle with LONG TERM
Qualified local labor force Social acceptance
Terminal long term natural PROJECTS
Insulation efficiency (0,05%)
gas supply
Lower costs for long term
growth
solutions (lower OPEX)

Not easily expandable

Less visual impact
Less proven technology Fast-track
Leasing alternative
Less space between relevant solution More recommended for
FSRU Land not required
equipments Port availability SHORT TERM
Able to be located close to
Face meteorological conditions required PROJECTS except in
and final consumption points if
Crew management Temporaly case of exceptional
port infrastructure is available
Higher O&M costs solution until the conditions (SoS or
FSU + Off/On shore Lower costs for
Periodical inspection (4 years) onshore environmental
regasification short/medium term
Insulation efficiency (0,15%) regasification conditions)
solutions (lower CAPEX)
Limitations in storage and send terminal is built
Allow rapid fuel switching
out capacity

15
 Cost comparison of the alternatives

Total Cost
(USD M.)
Cost comparison On shore Terminal vs FSRUs alternatives
1.400
on shore terminal
1.200 Break even point:
FSRU (construction) 8-10 years
1.000
FSRU (leasing)
800
600
400
200
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
years
Source: IGU.

Between 0 and 8/10 years  most profitable option FSRU leasing

From 10 years  most profitable option On shore terminal
FSRU construction is not in any case the most favorable option

16
 Index
LNG storage &
About Enags associated costs
and its LNG capacities

New LNG terminals

Onshore vs Offshore

17
 Storage & associated costs
TARIFFS
16,988 per Ship
Unloading
35 /GWh

LNG Storage 32,4 /GWh/d

176,841 per Ship

Reloading
1,563 /GWh

87,978 per Ship

Small scale
relaoding
521 /GWh

Port Costs

Imbalances

Losses

18
 Imbalances Summary UNBUNDLING OF SERVICES UNDER RD984

EXCESS LNG DEFICIT LNG

Based on total contracted Regasification Capacity (LNG Truck loading + Regasification capacity)

Maximum LNG stock allowed:

If (15 x total contracted regasification capacity) < 300 GWh  300 GWh
If (15 x total contracted regasification capacity) > 300 GWh  30-day Minimum LNG stock allowed: 0 kWh
moving average LNG stocks in all terminals = (15 x contracted
regasification capacity)

If LNG stock in excess (4 x total daily contracted capacity)  Daily

invoice of (2.5 x LNG Storage tariff) Daily invoice of (Quantity less than zero x 10%
If LNG stock in excess > (4 x total daily contracted capacity)  Daily Gas Reference Price)
invoice of (10 x LNG Storage tariff)

LNG Storage Tariff: 32,4 /GWh/day (0,01234 $/MMBtu/day) as per regulation Orden IET/2446/2013.

The Gas Reference Price is calculated as an arithmetic mean of the gas price in the Henry Hub and the National Balancing Point, using the methodology
established in article 9.6.6 of the NGTS.

19
 Losses

UNLOADING FUEL GAS RELOADING

0.005% of the Covered by Terminal No reloading losses under
unloaded LNG Operator: Efficiengy normal operation
conditions

20
 Conclusion

Enags understands its role as logistics solution provider

and aims to improve LNG competitiveness.

LNG storage costs are currently settled for the traditional

service of regasification. To develop bunkering and storage
Propuesta
businesses,
PLAN de market needs:
MEJORA 2016

Unbundling of storage services.

Modifying storage imbalances for capacities
dedicated to storage.

New LNG FSU storage could be needed in some cases to

further develop bunkering services.

21
Thanks for your attention
LNG terminals in the Mediterranean Sea
See one more LNG terminal in the Mediterranean Sea on next slide
Barcelona
DOCKS: 1 LS 1 SS: 2,000 / 266,000 m3 LNG
STORAGE: 760,000 m3 LNG / 6 Tanks
REGASIFICATION: 1,950,000 m3 (n)/h (544.3 GWh/d)
LNG TRUCK LOADING: 3 bays, 50 trucks/day
LNG METHANE TANKER LOADING: Max. 3,500 m3/h
TRANSSHIPMENT: Available
Cartagena
DOCKS: 1 LS 1 SS: 7,500 / 266,000 m3 LNG
STORAGE: 587,000 m3 LNG / 5 Tanks
REGASIFICATION: 1,350,000 m3 (n)/h (376.8 GWh/d)
LNG TRUCK LOADING: 3 bays, 50 trucks/day
LNG METHANE TANKER LOADING: Max. 3,500 m3/h
TRANSSHIPMENT: Available
LNG terminals in the Mediterranean Sea
See two more LNG terminals in the Mediterranean Sea on previous slide

Sagunto
DOCKS: 1 LS: 30,000 / 266,000 m3 LNG
STORAGE: 600,000 m3 LNG / 4 Tanks
REGASIFICATION: 1,000,000 m3 (n)/h
LNG TRUCK LOADING: 2 bays, 40 trucks/day
LNG METHANE TANKER LOADING: Max. 3,000 m3/h
TRANSSHIPMENT: Available
LNG Terminals in the Cantabrian Sea
El Musel
DOCKS: 1 LS: 65,000 / 266,000 m3 LNG
STORAGE: 300,000 m3 LNG / 2 Tanks
REGASIFICATION: 800,000 m3 (n)/h (223 GWh/d)
LNG TRUCK LOADING: 2 bays, 50 trucks/day
LNG METHANE TANKER LOADING: Max. 6,000 m3/h
TRANSSHIPMENT: Available
Bilbao
DOCKS: 1 LS: 7,500 / 270,000 m3 LNG
STORAGE: 450,000 m3 LNG / 3 Tanks
REGASIFICATION: 800,000 m3 (n)/h (223 GWh/d)
LNG TRUCK LOADING: 1 bay, 15 trucks/day
LNG METHANE TANKER LOADING: Max. 3,000 m3/h
TRANSSHIPMENT: Available
LNG Terminals in the Atlantic Sea

Huelva
DOCKS: 1 LS: 7,500 / 175,000 m3 LNG
STORAGE: 619,500 m3 LNG / 5 Tanks
REGASIFICATION: 1,350,000 m3 (n)/h (376.8 GWh/d)
LNG TRUCK LOADING: 3 bays, 50 trucks/day
LNG METHANE TANKER LOADING: Max. 3,700 m3/h
TRANSSHIPMENT: Available