LNG_VA_V3 24/03/2016 17:41 PageII Group profile — €69.9 billion in 2015 revenues €2.6 billion in 2015 net income (Group share) ENGIE develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy: access to sustainable energy, climatechange mitigation and adaptation, security of supply and the rational use of resources. ±155,000 employees in 70 countries The Group provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its €7.2 expertise in four key sectors: renewable billion CAPEX 2015 natural gas and digital technology. 900 researchers and experts at 11 R&D centers — energy, energy efficiency, liquefied LNG_VA_V3 24/03/2016 17:41 Page1 ENGIE — A global LNG player — 1 Editorial — LNG is a strategic activity for ENGIE. By enabling natural gas to be transported by sea over long distances, LNG is the ideal solution for giving access to resources that are geographically remote from consumer markets. Thus, LNG increases the Group’s portfolio with a secured, competitive and flexible energy source, to serve our internal and external customers. Our global expertise in the LNG industry is a key asset for the Group. ENGIE has been a pioneer and a driving force in the LNG industry from the development of the 1st LNG chain between Arzew in Algeria and Le Havre in France in 1965, to the development of Shuttle and Regasification Vessels in 2009 and the implementation of the first fast-track regasification terminal with a floating storage unit in Chile in 2010. In 2015, LNG accounted for approximately 25% of the long-term gas supply portfolio of ENGIE. Our integrated and global positions allow innovation at all levels of the LNG value chain. Thanks to new contracts and projects, LNG contributes to the security of supply of the Group and its gas portfolio diversification. In 2018, the Cameron LNG project will allow ENGIE to source LNG from the USA. Our presence in infrastructures provides us with expertise in onshore regasification terminal operations and floating regasification terminals, such as FSRUs (floating storage and regasification units). Our ability to develop new downstream markets, such as retail LNG, is also part of our innovative competencies. ENGIE can also leverage its LNG positions to develop integrated projects from upstream to downstream activities (power generation, local gas sales). ENGIE is a major LNG importer in Europe and a reliable supplier for the high growth Asia-Pacific markets. The outlook of LNG markets is robust with an annual 4% increase in demand expected between 2015-2030. LNG is a key lever to support the Group’s growth through its ambition to expand its footprint in high growth regions, such as Asia-Pacific or South America. Gérard Mestrallet Chairman and CEO, ENGIE LNG_VA_V3 24/03/2016 17:42 Page2 2 — ENGIE — A global LNG player ENGIE and LNG at a glance — Close to 1,000 2nd LNG specialists from 16 countries largest operator of LNG terminals in Europe Largest 16.4 European LNG importer 1st LNG chain between Arzew (Algeria) and Le Havre (France) mtpa LNG long-term volumes, sourced from 6 countries More than 50 years of experience Top 5 LNG supply portfolio in the world LNG_VA_V3 24/03/2016 17:42 Page3 ENGIE — A global LNG player — 3 The ENGIE LNG community — Close to 1,000 people from 16 countries spread over all continents work hand in hand with our customers along all steps of the LNG value chain. Drawn from across the Group, our experts in LNG form the ENGIE LNG Community, a forum for exchanging technical and business know-how, and best practices. Their expertise in all the fields of LNG, combined with the close cooperation the Community fosters among its members, contribute to ENGIE’ standing as a recognised global expert in the field of LNG. LNG_VA_V3 24/03/2016 17:43 Page4 4 — ENGIE — A global LNG player We develop the value chain all — Liquefaction By developing or actively participating in liquefaction projects. In the USA, ENGIE is a shareholder and capacity holder in Cameron LNG, a natural gas liquefaction project in Louisiana. ENGIE also holds stakes in liquefaction plants in Egypt and Norway. Mejillones Terminal, Chile Regasification terminals In downstream activities with new terminals. The Fos Tonkin, Fos Cavaou and Montoir-de-Bretagne – with its 2 berths adapted for transshipment – terminals, in France, are operated by ENGIE subsidiary ELENGY and can receive the largest LNG carriers. In Latin America, ENGIE also operates the GNL Mejillones terminal in Chile where 34 transshipments were operated between 2010 and 2014. Meanwhile, in India the Group has a strategic partnership with Petronet LNG Ltd and is developing a floating LNG import terminal project with Andhra Pradesh Gas Distribution and Shell. LNG portfolio management Thanks to a large and diversified portfolio of 16.4 mtpa from six countries, the Group ensures safe, reliable and economical LNG supplies to its entities and clients. ENGIE development and supply projects are well positioned to meet the growing global demand. a LNG_VA_V3 24/03/2016 17:43 Page5 ENGIE — A global LNG player — 5 around the world LNG shipping By optimizing a fleet of 14 LNG carriers. ENGIE has a fleet of 14 LNG carriers, a mixture of owned vessels, and short, medium and long-term chartered vessels. The Group received five newly built vessels in 2009-2010, representing a significantly renewed fleet. State-of-the art services By providing state-of-the-art engineering services for the LNG industry. Our global engineering and consultancy Tractebel is a world leader in the field with 40 years of experience in LNG. Its pool of uniquely specialized skills and renowned experts offers top-level knowledge partnering to clients all over the globe, helping them to achieve economic success and excellence. The Group also enjoys expertise in membrane tank design via its subsidiary Gaztransport & Technigaz (GTT, owned by ENGIE at 40%). R&D Implementing an ambitious R&D initiative. As a pioneer in the LNG sector, the Research & Technologies Division, along with the ENGIE Lab CRIGEN (laboratory devoted to gas and new energy sources), has developed its recognized know-how all over the world in the field of LNG behavior, industrial safety and technologies. It builds on a network of international partners to meet the Group’s challenges in operational and economic performance. Based on its skills, CRIGEN works to promote ENGIE’s LNG activities all over the world. Melkøya island, Norway LNG_VA_V3 24/03/2016 17:43 Page6 6 — ENGIE — A global LNG player Our positions in the world as a g — SNØHVIT LNG EVERETT ARZEW SKIKDA CAMERON LNG HOUSTON IDKU PENUELAS YEME ATLANTIC LNG NLNG MEJILLONES LNG_VA_V3 24/03/2016 17:43 Page7 ENGIE — A global LNG player — 7 global player ISLE OF GRAIN ZEEBRUGGE LONDON BRUSSELS TIANJIN-CAPE ANN-FSRU PARIS TOKYO MONTOIR-DEBRETAGNE FOS CAVAOU FOS TONKIN DAHEJ NEW DELHI KAKINADA YEMEN LNG KOCHI LIQUEFACTION LNG Supply SINGAPORE Liquefaction plant with equity REGASIFICATION Regas capacity Regas operation Regas terminal with equity RETAIL LNG HEADQUARTERS LNG OFFICES DESCRIPTION Planned Under construction LNG_VA_V3 24/03/2016 17:43 Page8 8 — ENGIE — A global LNG player Management and optimization of — ENGIE has one of the top 5 LNG supply portfolios in the world, with 16.4 mtpa of long-term supplies from six countries. Forming a key element of the Group supply LNG is a key element of ENGIE' supply portfolio, providing diverse and flexible supply and related business opportunities. We ensure the reliable and economical supply of LNG to the ENGIE markets, particularly in Europe, North America and South America, by managing the Group’s LNG supply contracts and ship charter contracts. We also aim at creating additional value by developing new markets outside the Group. We have already implemented mid-term purchase and sales agreements with major gas and LNG companies. portfolio, LNG accounted for approximately 25% of the long-term gas supply portfolio of ENGIE in 2015. Providing long-term supply Among the 5 largest supply portfolios in the world An LNG portfolio fully integrated within ENGIE long-term natural gas supply portfolio Others(1) Yemen Australia 1%1% Nigeria 2% 1% Unspecified(2) 9% Libya 3% Trinidad & Tobago 5% Asia 6% Norway 26% 554 TWh of which ~ 25% LNG 11% The Netherlands 20% Russia 15% Algeria (1) Of which Germany and UK < 1% each. (2) Purchases from gas suppliers: origin unspecified. LNG supply o LNG_VA_V3 24/03/2016 17:43 Page9 ENGIE — A global LNG player — 9 our LNG portfolio In addition to supplying the needs of the Group’s entities, ENGIE has been developing LNG sales in the last few years, in high growth markets outside Asia is a major development region for the ENGIE LNG business, with strong growth prospects and new supply potential. With the flexibility in our natural gas portfolio, the Group is one of the few European utilities that can deliver LNG volumes to developing markets such as the Asia-Pacific Basin. Since 2010 and the opening of an office in Singapore, ENGIE has signed several short and medium-term LNG sales agreements with a majority of Asian clients: from 2010 to 2017, delivery of 186 cargoes (approx. 11.5 million tons of LNG). the Group, especially in Asia and Latin America. Meeting growing demand in Asia: ongoing contracts MARUBENI TOHOKU Electric Power GSPC ENGIE • 2016: opening of a business development office in New Delhi ENGIE • 2015: opening of Global LNG Rep. office in Tokyo KANSAI CHUBU ENGIE • 2010: opening of the Global LNG office in Singapore CNOOC CPC Corporation PETRONAS JANGKRIK • 45% stake in Muara Bakau offshore E&P licence ENGIE holds a 10% stake in Petronet LNG. LNG_VA_V3 24/03/2016 17:45 Page10 10 — ENGIE — A global LNG player We have a broad expertise in — ENGIE has more than 50 years’ experience in the design, construction, chartering, operation, maintenance and management of LNG carriers. At any given time, vessels within the ENGIE fleet are sailing on various trades around the world to supply safely and economically ENGIE Today, ENGIE has a fleet of 14 LNG carriers*, with full or part ownership in five of these vessels. Within the fleet, ENGIE has two Shuttle and Regasification vessels (SRVs), the two sisterships GDF SUEZ Neptune and GDF SUEZ Cape Ann. These vessels are equipped with their own LNG regasification system, allowing them to regasify and discharge natural gas under high pressure directly into a designated Deep Water Port or similar gas receiving system. One of the Group’s SRVs has been sub-chartered to CNOOC and moored at Tianjin. customers. *as of 1st January 2016. ENGIE is also involved in the operation, management and maintenance of its LNG carriers, via the expertise of GAZOCEAN. This Ship Operator company is jointly owned by ENGIE (80%) and the Japanese Company NYK (20%). Founded in 1957, GAZOCEAN is one of the pioneer Marine Companies in the field of LNG transport. ENGIE also enjoys expertise in membrane tank design developed by Gaztransport & Technigaz (GTT, owned by the Group at 40%). GTT is a French marine engineering company specialized in the design of membrane containment systems for the maritime transportation and storage of LNG. Today, it is the leader on the market, as membrane containment system stands for 74% of the existing fleet. It will continue to increase with 79% of the orderbook on the 31st of December 2015. Provalys Gaselys GDF SUEZ Global Energy BW GDF SUEZ Brussels BW GDF SUEZ Paris L LNG_VA_V3 24/03/2016 17:45 Page11 ENGIE — A global LNG player — 11 LNG shipping 14 LNG carriers* “Dual-Fuel Diesel Electric Propulsion system” Seven LNG carriers in the ENGIE fleet are equipped with the Dual-Fuel Diesel Electric propulsion system. It was in 2006 that the Group received the first DFDE LNG carriers in the world, built to our own specifications, and mainly using the natural evaporation of the LNG onboard as a fuel. This innovation makes it possible to achieve a substantial improvement in overall propulsion efficiency and reduces the amount of greenhouse gas emissions. It has since been adopted by many companies, with almost all of the current order book of LNG vessels using this technology. GDF SUEZ Neptune Grace Barleria Ship Name Capacity Shipbuilder Built Operator (LNG cm) Matthew 126,540 Newport News (USA) 1979 Hoëgh LNG BW GDF SUEZ Boston 138,000 Daewoo (Korea) 2003 BW Gas 138,000 Daewoo (Korea) 2003 BW Gas 154,500 Chantiers de l’Atlantique (France) 2006 GAZOCEAN 74,130 Chantiers de l’Atlantique (France) 2006 GAZOCEAN 154,500 Chantiers de l’Atlantique (France) 2007 GAZOCEAN Grace Cosmos 149,700 Hyundai (Korea) 2008 GAZOCEAN BW GDF SUEZ Paris 162,400 Daewoo (Korea) 2009 BW Gas BW GDF SUEZ Brussels 162,400 Daewoo (Korea) 2009 BW Gas GDF SUEZ Neptune 145,000 Samsung (Korea) 2009 Höegh LNG Fleet Management GDF SUEZ Point Fortin 154,200 Imabari (Japan) 2010 MOL GDF SUEZ Cape Ann 145,000 Samsung (Korea) 2010 Höegh LNG Fleet Management Grace Acacia 149,700 Hyundai (Korea) 2007 NYK / GAZOCEAN Grace Barleria 149,700 Hyundai (Korea) 2007 NYK BW GDF SUEZ Everett Provalys GDF SUEZ Global Energy Gaselys SRV SRV n ENGIE owned or co-owned vessels. *as of 1st January 2016. LNG_VA_V3 24/03/2016 17:45 Page12 12 — ENGIE — A global LNG player We own and operate several LNG t — ENGIE has a significant presence in regasification terminals, as operator and with 27.4 mtpa of The Group is the largest European LNG importer and the second operator of LNG import terminals in Europe, with French terminals Montoir-de-Bretagne, Fos Tonkin and Fos Cavaou. Since 1965, more than 9,200 cargoes have been unloaded at the French terminals by ELENGY where reloading, transshipment and truck loading services are also available. regasification capacities around the world. 2 nd LNG import terminal operator in Europe More than 9,200 cargoes unloaded at the French terminals by ELENGY since 1965 In the United States, the Group is the number one LNG terminal player with more than 40 years of operating history of the Everett Marine Terminal in Massachusetts. In Chile, the Group also operates the Mejillones terminal, located in the Antofagasta region, through GNL Mejillones, a subsidiary controlled by ENGIE. Through another local subsidiary, ENGIE has access to long term regasification in this terminal. In Europe, ENGIE has access to long term regasification capacities in Montoir-de-Bretagne, Fos Tonkin and Fos Cavaou (France), Zeebrugge (Belgium) and Isle of Grain (United Kingdom). In India, ENGIE holds a 10% stake in Petronet LNG, owner and operator of the Dahej terminal and the Kochi terminal. In addition, ENGIE is developing several regasification projects, including the Kakinada project (India). LNG_VA_V3 24/03/2016 17:46 Page13 ENGIE — A global LNG player — 13 terminals around the world EVERETT MARINE TERMINAL (USA) ENGIE in North America owns and operates the Everett Marine Terminal, which has the capacity to deliver approximately 700 million cubic feet of natural gas per day to the New England market. The company provides LNG for uses as diverse as producing electricity, heating homes and businesses and fueling long-haul trucks. It is also well positioned to serve the heating, power and process needs of businesses without access to pipeline gas. GNL MEJILLONES (CHILE) ENGIE holds 63% in GNL Mejillones (37% is held by CODELCO, the giant copper mining company). This LNG receiving, regasification and storage terminal has a nominal regasification capacity of 5.5 million m³ per day of natural gas. The facility incorporates a 700 metre jetty and, since 2014, an 187,000 m³ onshore LNG storage tank replacing a FSU being operated from 2010. This regas terminal will facilitate gas exportation from Chile to Argentina as of 2016, through the interconnected gas pipeline networks. ELENGY Montoir-de-Bretagne ELENGY is a world-class operator of LNG terminals. A 100% subsidiary of ENGIE, it benefits from 50 years of experience in designing, developing and operating LNG terminals. It currently operates the 3 French terminals: Montoir-de-Bretagne, Fos Tonkin and Fos Cavaou. ELENGY serves all market players wishing to import LNG in order to supply the French and interconnected European markets, and offers innovative products. Outside France, ELENGY brings its combined expertise as owner and operator through strategic partnerships or advisory services for international onshore or floating LNG terminal projects. Fos Cavaou LNG_VA_V3 24/03/2016 17:46 Page14 14 — ENGIE — A global LNG player We have an increasing presence in liquefaction — ENGIE is active along the Egypt USA entire LNG value chain and plants in Egypt and Norway. In 2002, ENGIE acquired a 5% interest in the first liquefaction train at the Idku facility in the Alexandria region of Egypt. Our presence in liquefaction Norway allows us to secure long- In 2001, ENGIE acquired a 12% stake in the Snøhvit gas field situated in the Barents Sea, north of the Arctic circle, and holds an equivalent interest in the associated liquefaction on Melkøya island. The Group takes its share of the gas produced – about 0.5 million tons per year – in the form of LNG destined for the global LNG markets. ENGIE is a partner in the Cameron LNG project with Sempra (16.6% stake) and will access 4 mtpa of liquefaction capacity. The FID was taken on 6 August 2014 and the liquefaction plant will be in operation in 2018. holds stakes in liquefaction term LNG volumes and to develop a global LNG technical expertise, while benefiting from long-term returns from infrastructure investments. Melkøya island, Norway 12% stake in the Snøhvit liquefaction plant in Norway LNG_VA_V3 24/03/2016 17:46 Page15 ENGIE — A global LNG player — 15 We offer state-of-the-art consulting services — Tractebel is a leading international engineering and consultancy company with more than 100 years of expertise in energy, water and infrastructure projects. Tractebel’s services cover the whole project lifecycle, from feasibility studies to decommissioning. Specific in-house competencies l l l l l l l l l l l l l l l l Project management Technical & cost optimisation Process & safety Geotechnics & seismics Civil works & tank design Regasification Small-scale liquefaction Offshore solutions (FSRU) Piping & mechanical equipment Harbour and marine design, water intake and outfall Recondensers Operational expertise from ENGIE gas operators Procurement strategy Power & Gas synergy Environmental impact assessment Gas asset management A business unit of the BtoB Energy Services business line of ENGIE, Tractebel is an international leader in multitechnical energy related services. Clients benefit fully from the many synergies shared with the wide array of ENGIE Group companies. With some 40 years of experience in LNG, and having assisted in the development of more than 200 projects worldwide of which 25 are in operation today. Tractebel is a world leader in the field. It has engineered solutions for LNG terminals, transfer, storage, regasification and treatment units. As a result, it plays host to a considerable pool of uniquely specialised skills and renowned experts, covering all disciplines needed, notably in LNG process and safety studies, tank design, harbor and marine design. Our unique solutions are ambitious and multifaceted; they span the length of the gas value chain, bringing added value to clients all over the globe in LNG, gas processing and transmission, as well as in the storage and distribution of natural gas for both public and private markets. Tractebel has 33 regional offices, projects in over 140 countries, and employs around 4,400 people. Sines LNG terminal, Portugal LNG_VA_V3 24/03/2016 17:47 Page16 16 — ENGIE — A global LNG player We are at the forefront of LNG research — As a pioneer in the LNG CRIGEN industry, the Research & The ENGIE Group’s research and operational expertise center, devoted to the businesses of gas, new energy sources and emerging technologies, brings a mediumand long-term vision to the development of the Group’s business activities. Technologies Division has developed its recognized know-how all over the world in the field of LNG behavior, industrial safety Safety and technologies. Safety The ENGIE Lab CRIGEN has carried out major experimental and theoretical studies, which have led to the development of a large number of design codes and methodologies with high added value. In particular, they are aimed at assessing the risks and consequences of accidental spills of natural gas and LNG, continuously adapting to new LNG uses. Evolcode Platform: see QR code. LNG behavior LNG behaviour LNG master: study of a pressurized LNG station ENGIE’s development of software and analysis tools taken onboard LNG carriers is proof of its knowhow in terms of LNG behavior (ageing, stratification, and quality), and of controlling boil-off gas (quality, quantity produced). That key expertise is internationally recognized, especially through the sales of LNG MASTER®. LNG Simulation Tools: see QR code. Offshore LNG The ENGIE Lab CRIGEN brings its expertise, for instance, in areas related to LNG transfer and to the assessment of the availability and performance of offshore units such as FSRUs and FLNGs. It supports floating infrastructure projects through the development of new technologies and by assessing their operability. Retail LNG The ENGIE Lab CRIGEN took part in the launch of the ENGIE LNG Bunkering Vessel, putting its skills to good use in operational stock management and LNG transshipment between vessels. It also intervenes on technical and safety issues related to LNG used as a fuel for road transportation applications (LNG quality/metering, safety distances, LNG behavior, etc.). ALLS flexible LNG transfer system: a unique experimental testing of new offshore LNG transfer technology on a large scale under dynamic conditions LNG_VA_V3 24/03/2016 17:47 PageIII New opportunities in LNG: Retail LNG — New opportunities are springing up in the LNG market to accommodate customers requests for smaller volumes of LNG. 200,000 tons per year – Retail LNG activities at the Everett Marine Terminal (USA) Niche LNG is intended for consumers that are not connected to the main gas network grid or with a limited connection. For example, isolated industrial customers or power producers that burn costly liquid petroleum gas or diesel oil. The “LNG as fuel” market segment offers a significant potential, especially for ships and trucks. To comply with new regulatory thresholds on particle emissions in designated Emission Control Areas (ECAs) from 2015, and deal with the fuel oil prices increase in the long term, shipping companies are seriously considering to switch to LNG for their fleets. At the same time, the development of trucks that use LNG is already significant in China. ENGIE can already leverage on a recognized expertise in the Retail LNG field business through its activities at the Everett Marine Terminal (EMT) in the USA (200,000 tons per year) and recent truck loading facility in GNL Mejillones (Chile). ENGIE has also launched this activity in Europe: supply of LNG as fuel for shipping and trucking companies (truck loading services from Zeebrugge, Isle of Grain, Montoir-de-Bretagne and Fos Tonkin LNG terminals), and small scale LNG projects for remote areas. In June 2014, the Group signed a framework agreement with Mitsubishi Corporation and NYK, aiming at developing, in partnership, a clean maritime transportation market worldwide through LNG Bunkering Vessels (LBVs). On behalf of the venture, NYK ordered an LBV (the very first in the world) and ENGIE signed a contract with its first customer: United European Car Carriers (UECC), a leading short-sea operator. The partners will provide their know-how and experience to develop this first project in the Northern ECAs from Zeebrugge in Belgium, before spreading out the business model in other European ports and worldwide. The Group also plans to develop Retail LNG activities in different regions of the world, such as China where ENGIE will built a small scale liquefaction plant in partnership with Shaanxi Houde Tongxing. Over 350,000 trucks have been loaded at the Everett Marine Terminal since 1971 The LNG Bunkering Vessel project LNG_VA_V3 25/03/2016 10:56 PageIV The present document was produced by an eco-responsible printer on paper of certified origin. It is available on the engie.com website, where all Group publications can be viewed, downloaded or ordered. Unless otherwise stated, all figures are as of December 31, 2015. They take into account 100% of the capacity of assets held by ENGIE regardless of the actual holding rate. Photo credits: ENGIE, ENGIE / CAPA Pictures / Rojas Victor, ENGIE / Yann Werdefroy, Cyrille Dupont, ENGIE / Interlinks Image / Leimdorfer Gilles, Crigen, ENGIE / Claire-Lise Havet, ENGIE / Agence Marc Praquin, ELENGY / Charlotte Nylin, Tractebel, Abacapress, Altivue, Klo Allan, Nicolas Gouhier, Choque Tapia Carlos Alberto, L. Saccomano, Doris Engineering, M. Daniele, C. Dupont, P.F. Grosjean, F. Lucazeau, P. Wack Published 03/2016. Publisher and editor: ENGIE (Global LNG BU). Design and production: Agence Marc Praquin. 1, place Samuel de Champlain 92930 Paris La Défense — France Tel. +33 1 44 22 00 00 engie.com
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