LNG TRANSPORTATION CAPT SUNIL THAPAR DIRECTOR SCI 31

LNG TRANSPORTATION CAPT. SUNIL THAPAR DIRECTOR (SCI) 31 ST MAY 2013 1

LNG Prospects in India is the 4 th largest Energy consumer after US, China & Russia. Primary energy consumption of India has more than doubled between 1990 and 2011. The Indian gas market is projected to be one of the fastest growing in the world over the next two decades: the IEA forecasts gas demand to increase at 5. 4% per annum over 2007 -30 reaching 132 billion cubic meters by 2030. The power sector is the fastest growing area for energy demand, increasing from 23 percent to 38 percent of total energy consumption between 1999 to 2009. India and China represented a combined 12% LNG market share in 2012. The growing appetite for LNG in India and China resulted in 7. 7% & 12. 2% growth in LNG import in 2012 Natural gas currently contributes 8% of total energy consumption and is projected to grow up to 20% by 2030 in India. Source: - International Energy Agency 2

LNG in India beginning and growth India began importing liquefied natural gas from Qatar in 2004 and increasingly relies on imports to meet domestic natural gas demand gaps. In 2011, India was the 6 th largest LNG importer with over 5. 3% of the global imports. Gas consumption has grown at an annual rate of 10 percent from 2001 -2011 The power sector and fertilizer sector drives the Natural Gas Demand in the country. The government has identified these as priority sectors, which ensures that they receive larger shares of any new gas supply. 3

LNG in India reserves and network According to the Oil & Gas Journal, India had 43. 8 Trillion cubic feet of proved natural gas reserves at the end of 2012. About 30 percent of these are onshore reserves, while 70 percent are offshore reserves. The two most important companies operating India's large gas pipeline system are GAIL and RGTIL. GAIL is a state owned gas transmission & marketing company having 8000 km (Source: - CRISIL) gas transportation infrastructure. Reliance Gas Transportation Infrastructure (RGTIL) is the largest private sector gas transmission structure. 4

Evolving Energy Mix- Increase Share of GAS Source: - GAIL 5

Demand Supply Outlook of LNG in India Domestic natural gas supply to grow at a CAGR of 5. 6 per cent over FY 13 -15 while gas demand to grow at a CAGR of 17 -18 per cent thus aggravating the deficit situation. LNG imports are expected to increase at a CAGR of 19 per cent over FY 13 -15 but will only partially meet the shortfall, despite huge LNG re-gasification capacity additions planned in the next 5 years. India’s Gas demand supply gap projection necessitating import of LNG. Year 2015 2020 2030 Gap in demand supply MMTPA 14. 175 22. 05 40. 95 6

Existing & Projected LNG Regas Capacity 7

Existing LNG Terminals in India Terminal Partners Capacity Supply source Start up date Dahej Petronet LNG (GAIL, ONGC, Indian Oil and BPLC (each 12. 5%), GDF Suez (10%), ADB (5. 2%) and private shareholders (34. 8%)) 10 mtpa Qatar – long term (7. 5 mtpa) March 2004 Hazira Shell (operator, 74%), Total (26%) 3. 5 mtpa Merchant model April 2005 Dabhol NTPC, GAIL, Indian banks 15 (28. 3% each) and the Maharashtra state Electricity Board (15%). 5 mtpa (1 mtpa initially) Possible: Algeria, Qatar, Australia, Oman and Abu Dhabi 2010 Total Capacity 18. 5 mtpa 8

Under Construction LNG Terminal in India Terminal Partners Capacity Supply source Startup date Kochi Petronet LNG 2. 5 mtpa 1. 5 mtpa for 20 years from Gorgon, Australia (2014 -15). Possibly Qatar, Papua New Guinea 2012 9

Planned LNG Terminals in India-1 Terminal Partners Capacity Start up date Dahej exp Petronet LNG 2. 5 mtpa March 2014 Hazira exp Shell, Total 6. 5 mtpa TBN Kochi exp Petronet LNG 2. 5 mtpa 2014 Mundra Port GSPC (75%), Adani Group (25%) 6. 5 mtpa 2012 Mangalore ONGC & IOC 5 mtpa 2012 Total Capacity 23 mtpa 10

Planned LNG Terminals in India-2 Terminal Partners Capacity Start up date Pipapav Port Essar Group, Swan Energy, possibly GSPC Gujarat Pipavav Port Ltd. Intends to become a partner 5 mtpa 2013 Ennore TIDCO, IOC 5 mtpa 2017 Haldia Spice Energy 2. 5 mtpa 2011 Total Capacity 12. 5 mtpa 11

Scope for Small LNG Tankers & FSRUs Demand for natural gas across the country in sectors such as town gas and transportation in addition to Industrial use and imported LNG can be an important source. Existing gas grid does not cover the entire country, particularly the coastal regions. Delays in expansion of gas grid owing to right of way problems & difficult terrain. Large coastline of about 7500 kms offers opportunity for small LNG carriers and FSRUs. Construction of small LNG Terminals at Andaman and Sri Lanka under consideration. 12

SCI’s Forays into LNG Shipping SCI is the first and only Indian Shipping Company to own and operate LNG Tankers. Major shareholder in 3 LNG tankers through Joint venture partnership with the tankers on a long-term charter. Disha and Raahi (138, 000 cbm) from 2004 and Aseem (155, 000 cbm) from 2009. SCI is the Ship Manager in all three tankers. SCI is keenly participating in the shipping tender for upcoming requirement for Petronet LNG Ltd’s Kochi terminal project. SCI is involved in commencement of cargo operations at the Dabhol terminal through its role as Marine services operator and 5 cargoes have been discharged till date. 13

SCI’s Vision for LNG Transport To emerge as the major Indian shipping company for LNG transportation. Plans for creation of a separate vertical in the company for LNG Shipping. SCI is in advanced stage of discussions for shipping arrangement with potential importers of LNG that have tied up long term LNG purchase contracts. To participate in ownership of additional 10 -12 LNG tankers by 2017 -2018 through the joint venture route. 14

SCI- Genesis & Present Scenario The Shipping Corporation of India Ltd. was incorporated on 2. 10. 1961. Listed company in the stock exchange with Govt. of India (GOI) share of 63. 75%. GOI has provided autonomy to the organisation by conferring Navratana status in August 2008. Today SCI is India’s largest and most diversified shipping company having about 38% share in Indian tonnage - owns 80 vessels of 5. 91 million DWT & manages 41 vessels on behalf of other agencies. For the past fifty years, SCI has been providing yeoman service to the country’s economy by meeting the ocean transportation requirements. Presence in all the segments of shipping including Dry Bulk, Tanker, Container, Offshore segments and LNG. Corporate network spanning the 4 metros of India as well as office at London Supported further by a strong agents network worldwide. SCI currently have 16 vessels on order which will be delivered in current and next year respectively. SCI Own three LNG carriers with total DWT of 229, 687 under 3 separate joint venture companies with Mitsui OSK Lines, NYK, K Line, Qatar Shipping Company, Qatar Gas Transport Company. SCI mans and manages 3 LNG vessels – Only Indian shipping company with LNG carrier expertise. LNG tankers are under 25 year charter carrying LNG from Ras Laffan, Qatar to Dahej Terminal of Petronet LNG 15

Fleet Liner vessels Dry bulk carriers Crude oil tankers Product tankers Acid carriers Gas carriers Pax vessels OSV’s Nos. 6 16 23 15 1 2 1 16 DWT 229, 131 993, 496 3, 627, 893 952, 728 33, 058 35, 202 5, 140 32, 650 80 vessels – 5. 91 million DWT 16

Fleet - Managed & Manned Organization Type of Vessels No. of Vessels LNG Carriers 3 Oil & Natural Gas Company OSV’s & MSV’s 19 A&N Administration Passenger-cumcargo 10 UTL Administration Passenger-cumcargo 1 Geological Survey of India Research Vessels 3 Department of Ocean Development Research Vessels 5 India LNG Transportation Co. 1 , 2 & 3 Ltd. Total: 41 17

Key Awards and Accolades “Tanker Operator of the Year” on 18. 04. 2013 at Gateway Awards of Excellence Port & Shipping 2013” Lloyds Awards for best container shipping from India to the U. K. – multiple times “Gold Award in Transport Category” at India Pride Awards for 2010 “Ship Owner of the Year - India” award at the Maritime and Logistics Awards in 2010 “Tanker Operator of the Year” on 19. 01. 2012 at Gateway Awards of Excellence Port & Shipping 2012” “Safest & Most Environmentally Conscious Indian Shipping Company” at the 2009 World Maritime Day “Best Shipping Line of the Year on 27. 09. 12 at 6 th Express, Logistics & Supply Chain Awards” “Seatrade Middle East & Indian Subcontinent Award” in the CSR category at Dubai in October, 2011. 18

Key Awards and Accolades “Training Award” from ‘Lloyd’s List’ for Middle East and Indian Subcontinent in 2012 Prestigious “Greentech Platinum Award”, in the Shipping Sector for its continuous commitment to the community welfare and voluntary initiatives. At Shipping Maritime & Ports event (SMP) on 08. 02. 12 - “Fastest Growing Company Award BT STAR PSU Excellence Awards 2012 - in HR Managemenrt on 25. 05. 12 Dun & Bradstreet : PSU Awards 2012 - in “Transport & Logistics Sector” on 28. 05. 2012 "Outstanding Contribution to the Seafaring Community” Award on the occasion of 'Day of the Seafarer', on June 25, 2011 “Most Compassionate Employer of Indian Seafarers”, “Safest Indian Shipping Company” and “Ship of the Year” awards instituted by DG Shipping. On April 27, 2011, honoured with the Dun & Bradstreet – “Rolta Corporate Awards 2010”, in the Shipping sector. Maritime and Logistics Awards 2011, held on September 30, 2011, awarded as "Ship Owner of the Year - Indian". 19

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