Atlantic Basin LNG

Diverse Drivers that Require Diversified Marketing

06 June 2006

23rd World Gas Conference

Atlantic Basin LNG Market

Definition

Growth in Demand

Growth in Regasification Facilities

Atlantic Basin

LNG Exporting

LNG Importing

Atlantic Basin Region

Atlantic Basin LNG Demand

0

20

40

60

80

100

120

140

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

mtp

a

Global Demand

AB Demand

27% 25%

26%24%24%

22%23%23%26%27%27%28%28%26%

26%

33%33%

30%29%29%

22%

33%

NA Regas Facilities Development

Regas Facility Announced in 2004 & 2005

European Regas Facilities Development

Regasification Terminal Announced in 2004 / 2005

Dominate Market Drivers

Price

Weather

Scheduling

Shipbuilding

Sourcing Constraints

Suppliers Seeking Global Market Diversity

HH Prices : Historical & Forward

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Jan

-98

Ju

l-98

Jan

-99

Ju

l-99

Jan

-00

Ju

l-00

Jan

-01

Ju

l-01

Jan

-02

Ju

l-02

Jan

-03

Ju

l-03

Jan

-04

Ju

l-04

Jan

-05

Ju

l-05

Jan

-06

Ju

l-06

Jan

-07

Ju

l-07

Jan

-08

Ju

l-08

Jan

-09

Ju

l-09

Jan

-10

Ju

l-10

Jan

-11

Ju

l-11

$/m

mb

tu

Historicals Forwards

Forwards: 05 Jan 2006

Brent Prices : Historical & Forward

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

$/b

bl

Historicals Forwards

Forwards: 16 Dec 2005

2005 Hurricane Season

Spanish Inland Rainfall (Oct – Sept)

0

100

200

300

400

500

600

700

800

mm

Example of Liquifaction Plant Build-Up

0%

20%

40%

60%

80%

100%

Initial 3 6 9 12 15

Months

% A

nn

ual

Co

ntr

act

Qu

anti

ty

LNG Fleet : Actual and Projected (with no scrapping)

0

50

100

150

200

250

300

350

400

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Nu

mb

er

of

Ve

ss

els

Expected Deliveries

Current Vessels

147k CBM LNG New-Building Prices

0

50

100

150

200

250

300

$U

S M

illio

n

Qatar Diversifying their Markets

Qatar Japan

UKSpain

LNG plant

Regas terminal

Korea

Italy

USECGOM

Belgium

India

Success Factors in the Atlantic Basin LNG Market

Access to Premium North American Gas Markets

Foundation of High-Volume Markets

Diversified Atlantic Basin LNG Supply

Flexibility During LNG Project Life Cycle

Leveraging LNG with Pipeline Supply

Everett, MA

Lake Charles, LA

Cove Pt, MD

Elba Island

Henry Hub Pricing

NA Premium and High-Volume Markets

Premium markets

High-Volume markets

Altamira

European Markets

SaguntoRovigo

Brindisi

Bilbao

Milford Haven I

Isle of Grain

Milford Haven II

Sines

Livorno

Zeebrugge

Huelva

Cartagena

Montoir

Panigaglia

Le VerdonEl Ferrol

Barcelona

Fos

Revithoussa

Marmara

Fos XOM

Priolo

Fos Cavou

Zeebrugge

Rotterdam Eemshaven

PGNiG

Existing/operational

Under Construction

Planned

Shell Capacity/Planned

WilhelmshavenDragon LNG

Isle of Grain Expansion 1 & 2

Rosignano

Canvey Island

High-Volume markets

?

Shell’s Diversified LNG Supply

Baja Capacity: 7.5

Elba Island Capacity: 3.1

Cove Point Capacity: 5.4

NLNG Trains 1-6 Capacity: 21.75

ESBI Tolling

Brunei Capacity: 7.2

Altamira Capacity: 3.6 MLNG

Capacity: 14.6Hazira Capacity: 2.5

North West Shelf 1-5 Capacity: 16.3

Qatargas IV Capacity: 7.8

Oman/Qalhat Capacity: 10.3

Sakhalin Capacity: 9.6

All Figures are in mtpa

LNG Plant

Regas Terminal

Shell’s Atlantic Basin Gas Market Presence

Shell Market

Shell Regas Facility

Back-Up Slides

Spanish Mainland Water Reserves

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Year

hm

3

Receiving Terminals

Existing

Planned

Everett

Elba Island

Cove Point

Nigeria

Altamira

Nigeria Diversifying their Markets

SpainPortugal

France

Turkey

USEC

Mexico

GOM