South Hook LNG Terminal

Presentation to BERR-EEF Event

18th February 2008

Mohammed Al-Naimi Director & General Manager

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Qatar Overview

North Field
Doha

~ 60 miles

QATAR
UAE KSA
Qatar Population 0.8M Area 11,400 km2 Rapidly growing economy Over 25% growth since 1994 GDP of $15 billion projected to double over next 10 years Among the highest per capita GDP in the world North Field Worlds largest non-associated gas field Gas reserves of 900+ TCF : equivalent to ~ 250 years UK demand ~ 150 Morecambe gas fields Existing Facilities/Projects 8 LNG trains (31 MTA) Contracted supply to Japan, Korea, Europe, India Overtook Indonesia in 2006 as largest LNG exporter Future Projects 6 additional LNG trains (46 MTA)

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Qatargas II Supply Chain

Gas LNG LNG Gas to Pipeline Gas Production Gas Treating & Liquefaction LNG Shipping LNG Regasification

Qatargas II Project Scope

Mega-project employing step-out technologies and economies of scale to offset distance disadvantage. Key components include: Gas from worlds largest gas field Two 7.8 million MTA trains will be the largest ever constructed; 60% larger than any to date A fleet of 14 large LNG ships; 70% larger than any ever built Receiving terminal in the U.K. to re-gasify and deliver 2.1 BCFD

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Drilling/Offshore Development Plan

30 wells Three unmanned wellhead platforms Two wet gas pipelines (34 and 38) to shore (lengths of ~80 km & ~105 km) Power, communication and control from QG complex.

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Onshore Processing

Each train almost 1km long Capacity of 7.8 mta each (c.f. 4.7 mta for current world scale plant) Scale up of existing technologies Waste heat recovery Low NOx burners Required to keep QGII Onshore Project going.. 25,000 people Cable stretching from Doha to London Every month.31,000,000 gals of water; half million eggs; 180 tons of rice; 3,000,000 litres of diesel Every month ...1200 trucks of sand; 300 trucks of cement; 90,000 bars of soap 5

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Qatar Infrastructure Sharing

Common Sulphur 12,000 t/d

Common Lean LNG 56 MTA

$5.5 Billion of facilities being jointly constructed/used Common Sulfur: Qatargas II execution, 12,000 tonnes/day Common LNG Tanks/Berths: Qatargas II execution, 56 mta Common Condensate SPM: Qatargas II execution Common Condensate Tanks: RasGas execution, 500,000 barrels per day Common LPG: RasGas execution, 14 million metric tons per year Facilities to be shared by 12 LNG Trains, gas, GTL, and energy ventures in Ras Laffan

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Ships

Gas Pipeline

Highly efficient new-build ships to be deployed Scale increase Twin screw slow speed diesel On board re-liquefaction sell what you load Q-flex (8 ships) 50% increase in cargo capacity Q-max (6 ships) further 25% increase in cargo capacity 30% cost of service reduction

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South Hook LNG Terminal Development

Production Capacity Receive, store and re-gasify 15.6 MTA LNG Send out 2.1 BCFD natural gas 20% current UK gas demand

Facilities Description Upgrade and refurbish existing marine jetty All conventional technologies 5x155 km3 full containment LNG storage tanks Submerged Combustion Vaporizers (SCVs) Pipeline extension/reinforcement to national gas grid being built and operated by NGG Permitting All major permits obtained Secondary permits on track EU exemption granting full access obtained

Economic Advantages Outside N. Sea shipping lanes Shortest sailing distance to UK Natural deepwater harbour (minimal dredging) Skilled local labour availability

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South Hook LNG Project Update

Status
Aerial View of LNG Tanks and Re-gas Area

Phase I: 93% complete Phase II: 86% complete Phase I: start-up Gas Summer 08

Jetty Refurbishment

Nitrogen Plant
Re-gas Plant

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Environmental Mitigation Measures

Pipeline

Visual Impact Reduced by tank design, construction of bunds, positioning and landscaping Land Re-development and remediation of a former brown-field site, continuous monitoring undertaken Air Low emitting LNG vaporizers used: very low levels of nitrogen oxides and carbon dioxide Water Submerged Combustion Vapourisers [SCVs] design chosen over open-rack system Low nitrate levels in SCV effluent Reverse osmosis to reuse water Complex water run off management system to minimise sediment entering Haven Fuel bunkering not undertaken on site to prevent spills 10

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Visual Impact

Gas to Pipeline

Minimising visual intrusiveness of the facility was a key requirement of the permitting authorities and other stakeholders Achieved by
Creating a hollow in which the tanks are positioned by removing 1.5 million cubic metres of spoil Tanks wider and squatter than industry norms Creation of strategically placed bunds Landscaping Tanks positioned so only the two lead tanks are visible 11

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Conservation Area

Gas to Pipeline

Legally binding Section 106 Agreement with Pembrokeshire Coast National Park Authority - 110 acres of site left for nature conservation Unique eco-system - access to the area is restricted. Artificial badger sett created Kestrel nesting boxes installed Management Plan under development

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South Hook LNG Project Summary

$1.6 Billion dollar mega-project Part off $13 billion full value chain Largest LNG Terminal in Europe
capacity is approx. 20% of UK natural gas demand

Key element of Qatars plan to become the leading player in LNG world markets Important to UK natural gas supply security and diversity policy goals

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